Teachers loans dent EastWest Bank’s earnings
The banking unit of the Gotianun family reported a 12% drop in profit to P4.5 billion last year, largely due to higher deposit interest costs and lower trading gains.
Net revenues of East West Bank slightly fell to P25.5 billion from P25.7 billion.
EastWest Bank said the Department of Education’s suspension of its lending program to public school teachers under the automatic payroll deduction system adversely affected its bottomline.
The bank, however, claimed it remained among the most profitable lenders, with an 11 percent return on equity.
Its loan portfolio grew 16 percent on steady growth of the consumer segment.
“We like to look at our 2018 results as half full rather than half empty. While external developments were on the more challenging side, the bank managed to register a good level of profitability.
We are positive that 2019 will be a better year for EastWest as interest rates stabilize and the country’s growth story continues,” EastWest president and CEO Bobby Reyes said in a statement.