EastWest Banking Corp. and Security Bank Corp.—both listed lenders—on Tuesday highlighted stellar gains in their banking operations in 2017, owing largely to strong lending and expansion of network during the year.
In particular, EastWest reported to its stockholders that 2017 has been the bank’s “most fruitful year” so far, with its net income growing 48 percent to P5.05 billion, from P3.41 billion in 2016.
The bank’s return on equity was also considered “industry leading” at 13.8 percent. Its net interest margin, meanwhile, stood at 7.8 percent.
EastWest Vice Chairman and CEO Antonio Moncupa Jr. attributed the bank’s solid gains to their efforts in improving and expanding operations during the year.
Meanwhile, Security Bank reported good news to its stockholders, boasting 20-percent earnings growth in 2017, which led to a record-high net income of P10.26 billion.
The bank also reported a strong loan-portfolio growth of 28 percent, above the industry average of 19 percent. Security Bank said this was driven by corporate loans, which surged 25 percent.
Middle market loans for the bank, meanwhile, grew 24 percent, while consumer loans expanded at 49 percent.
However, EastWest’s Moncupa believes 2018 will be a more challenging year for the entire banking industry, citing heightened international economic and political risks, such as volatile exchange rates and higher interest rates.
“Bottom line, it appears that revenues and income from this segment will likely by lower in 2018,” Moncupa said.