EastWest nets P9.2B in 2025, up 21%

Unlocking the Secrets of EastWest's P9.2 Billion Net Income A Blueprint for Success

In today's rapidly evolving banking landscape, it is crucial for financial institutions to stay ahead of the curve. EastWest Banking Corp. (EastWest) has achieved just that, reporting a remarkable 2025 net income of P9.2 billion – a 21% increase from the previous year. This impressive performance can be attributed to several key factors, which we will explore in this blog post.

Efficient Growth A Key Driver

EastWest's ability to grow efficiently amidst a competitive environment and evolving market conditions is a testament to the bank's success. According to EastWest Bank President Jackie Fernandez, Our 2025 performance demonstrates the bank's ability to grow efficiently amid a competitive environment and evolving market conditions. This efficient growth can be attributed to several key factors

Core Revenues Total revenues grew 20% year on year to P51.0 billion, driven mainly by a steady expansion in net interest income.
Fee-Based Income Noninterest income also contributed to growth, with fee income rising 21% from a year earlier to P7.1 billion.
Tighter Cost Control Operating expenses increased by a relatively modest 8% to P25.4 billion, allowing pre-provision operating profit to jump 33% to P25.5 billion.

The Art of Balance

EastWest's balance sheet continued to expand alongside stronger funding. Total assets rose 10% to P577.1 billion, while total deposits grew 13% to P437.8 billion. This strong funding base supports sustainable asset growth while keeping funding costs manageable.

Deposit Growth Deposit growth was mainly driven by low-cost current account and savings account (CASA) deposits, which increased 14% and kept the CASA to total deposit ratio high at 82%.
Priority Banking EastWest's Priority Banking business also gained traction, with assets under management rising 40% to more than P100 billion.

Capital Adequacy A Buffer Against Uncertainty

EastWest's capital levels remained sound, with a capital adequacy ratio of 13.5% and a common equity tier 1 ratio of 12.6%, both above regulatory requirements set by the Bangko Sentral ng Pilipinas.

Provisions for Credit Losses Provisions for credit losses reached P14.2 billion, in line with EastWest's conservative risk management approach.
Nonperforming Loan Coverage Ratio The bank's nonperforming loan coverage ratio remained at 86%, consistent with industry benchmarks.

A Framework for Success

As we analyze EastWest's impressive performance, it becomes clear that the company's success can be attributed to a combination of factors. This is exemplified by the following syllogism

Efficient Growth EastWest's ability to grow efficiently amidst a competitive environment and evolving market conditions.
Strong Funding Base The bank's strong funding base supports sustainable asset growth while keeping funding costs manageable.
Prudent Risk Management EastWest's conservative risk management approach ensures the bank remains well-positioned against macroeconomic uncertainties.

Conclusion

EastWest Banking Corp.'s 2025 net income of P9.2 billion is a testament to the company's ability to grow efficiently and prudently. By focusing on core revenues, fee-based income, and tighter cost control, EastWest has demonstrated its commitment to delivering solid profitability and improved returns.

As professionals in the field, we can learn valuable lessons from EastWest's success. By adopting strategies that prioritize efficient growth, strong funding, and prudent risk management, we can unlock new opportunities for ourselves and our organizations.

References

EastWest Banking Corp. (2025). Annual Report.
Bangko Sentral ng Pilipinas. (2022). Monetary Policy Framework.

Keywords EastWest Banking Corp., banking industry, efficient growth, strong funding, prudent risk management, syllogism, financial performance, net income.

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.