EastWest profit drops 24 percent on higher provisions

East West Banking Corp. (EastWest)’s net income fell 24.24 percent year-on-year to P5 billion in the first nine months of 2026 from P6.6 billion in the same period a year earlier, as higher provisions for expected credit losses weighed on earnings despite revenue growth and improved operating efficiency.

Provisions for expected credit losses reached P15.9 billion amid heightened credit risks and economic uncertainty, while the bank’s nonperforming loan coverage stood at 90 percent.

Net revenues rose 16 percent year-on-year to P43.4 billion, driven by growth in the bank’s core businesses. Net interest income increased 22 percent to P36.2 billion, while service charges, fees and commissions grew 10 percent to P5.8 billion.

Operating expenses climbed 10 percent to P21 billion, slower than revenue growth, improving the cost-to-income ratio to 48.4 percent from 51.4 percent a year earlier. Pre-provision operating profit increased 24 percent to P22.4 billion, reflecting stronger underlying operations and improved efficiency, but the gains were offset by the substantial provisions for credit losses.

“Our underlying businesses remain healthy, with strong revenue growth and improving operating efficiency allowing the Bank to remain profitable,” EastWest Chief Executive Officer Jerry G. Ngo said. “The current environment requires us to maintain discipline in managing risk while continuing to strengthen the franchise for the long term.”

EastWest continued to expand its balance sheet, with total assets rising 14 percent to P631.8 billion as of September. Loans grew 11 percent to P399.9 billion, while deposits increased 12 percent to P466.4 billion.

The bank maintained a current and savings account (CASA) ratio of 77 percent, while assets under management at EastWest Priority climbed 35 percent to P145 billion.

Capital adequacy remained above regulatory minimum requirements, with the bank reporting a capital adequacy ratio of 12.2 percent and a common equity Tier 1 ratio of 11.4 percent.

EastWest said its planned P9-billion stock rights offering is expected to further strengthen its capital base and support future growth.

“Our priority is to navigate the current environment with financial and risk discipline without losing sight of the Bank's longer-term opportunities,” Ngo said. “By maintaining a strong operating franchise while actively managing risks, we are positioning EastWest to weather near-term uncertainties while building the capabilities needed for sustainable growth.”