East West Banking Corp. (EastWest Bank) saw its net income for the first quarter increase to P1.7 billion from P1.6 billion in the same period last year as consumer loans and operations costs posted double-digit growth.

In its disclosure to the Philippine Stock Exchange on Tuesday, EastWest Bank said net revenues jumped by 28 percent to P10 billion.

This was boosted by net interest income amounting to P8.2 billion or 34 percent growth year-on-year.

Total loans and other receivables rose by 19 percent to P306.1 billion, mainly due to more transactions on credit cards, auto, personal and salary loans.

“This growth is largely attributed to the bank’s strategic emphasis on refined consumer lending strategies,” EastWest Bank said.

It shared that consumer loans now account for 81 percent of the bank’s total loans.

Meanwhile, non-interest income from service fees slightly grew by 8 percent to P1.2 billion.

Total deposits grew by 12 percent to P356.6 billion.

Multiple costs

Operating costs jumped by 22 percent to P5.8 billion which the bank said was mainly driven by manpower and other business related costs.

“This is to expand the Bank’s balance sheet as well as investments in technology to allow for a more efficient delivery of services,” EastWest Bank said.

However, the bank said cost-to-income improved to 58 percent, following its efforts for refined consumer lending.

“Our robust start to the year is a clear indicator of the strategic direction we’ve set — to be one of the top consumer banks in the country. By focusing on the needs of our customers, we are not just responding to the market — we’re shaping it,” EastWest Bank president Jacqueline Fernandez said.

Total assets stood at P480.4 billion or 19 percent higher than the year-ago level.

Due to the bank’s sustained income growth and sound management, its return on equity was better by 52 basis points.

The bank remained well-capitalized, with a capital adequacy ratio of 13.5 percent and a common equity tier 1 of 12.7 percent. Both were above the minimum requirement of the Bangko Sentral ng Pilipinas.