Despite economic uncertainties caused by Trump tariffs, EastWest Bank expects resilient loan demand this year due to the depreciating US dollar compared to the Philippine peso.
While he did not give a specific figure for projected loan growth, EastWest Bank chief executive officer Jerry Ngo said households will likely gain extra funds for loan repayments as prices of most goods decline.
"The weakness of the US dollar means goods will be cheaper. As an economy that is focused on consumption and importing goods, I'm hopeful for the Philippines," he said during the bank's recent annual stockholders meeting on a virtual platform.
Last year, the bank grew its net interest income by 19 percent to P33.5 billion compared to 2023, after consumer loans jumped by 16 percent.
The US dollar depreciated further against the local currency by 3 percent in the past 30 days, according to the Bankers Association of the Philippines.
This brought down the exchange rate to P56.265/$1 last Friday from P56.555/$1 on Thursday and from a peak of P59.1044 in December last year.
These figures came as President Donald Trump continued to flip-flop on his tariff policies imposed on exports to the US.
The International Institute of Finance (IIF) is projecting a "shallow" recession in the US in the second quarter if US prices of non-volatile items start increasing toward 4.6 percent inflation by year-end.
"Against this uncertain backdrop, the dollar retains its role as the world’s primary reserve currency, but that status feels somewhat less secure than in prior cycles," IIF said in a recent report.
"That resilience may be tested if mistrust in US policy-making deepens, especially in an environment shaped increasingly by policy-driven shocks rather than fundamentals," the institute added.
Despite global economic uncertainties, Ngo said remittances from overseas Filipino workers will continue to flow in, supporting expenses of families back home.