EastWest Bank Gains ₱1-B In Q2
Gotianun-led EastWest Bank (EW) booked a net income of ₱1.0 billion for the second quarter (Q2) of 2022, almost double the first quarter’s (Q1) ₱507.6 million due to the increase in loans and fixed-income securities portfolio.
Photo Insert: EastWest Bank was founded in 1994 by Andrew Gotianun.
Year-to-date (YTD) net income was at ₱1.5 billion, ₱2.3 billion lower than the ₱3.8 billion in the same period last year mainly due to the drop in fixed-income trading revenues.
Return on equity (ROE) was at 5.2% while total assets ended at ₱415.0 billion, 4% higher than last year. Core revenues, which exclude the volatile trading income, were 5% lower at ₱12.7 billion than 2021’s ₱13.4 billion Year-on-Year (YoY) mainly due to lower average loan volumes.
On a Quarter-on-Quarter (QoQ) basis, though, core revenues improved by ₱629.9 million or 10% to ₱6.7 billion as loans started to increase.
The ₱1.7 billion drop in fixed income trading was due to the global rise in interest rates as monetary authorities ramped up efforts to contain inflation.
The change was also magnified as the previous year’s ₱1.3 billion trading gains were higher than usual, while Q1 2022 was a loss of ₱420.7 million from the normal positive numbers.