GOTIANUN-LED East West Banking Corp. (EastWest Bank) saw its first-quarter net income rise 6 percent to P1.7 billion from P1.6 billion in 2023, driven by continued consumer lending expansion and strategic digital initiatives.

This translated to a return on equity of 10 percent, up 52 basis points compared to year-end 2023, the bank told the stock exchange on Tuesday.

"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," EastWest President Jacqueline Fernandez said in a statement.

"By focusing on the needs of our customers, we are not just responding to the market; we're shaping it. This positions EastWest as a formidable contender in the Philippine banking industry, ready to meet future challenges with agility and confidence."

Net revenues during the quarter climbed 28 percent to P10 billion, driven by a 34-percent growth in net interest income to P8.2 billion, which was attributed to its consistent consumer lending strategies.

Lending processes accounted for 81 percent of total loans and contributed to a net interest margin of 8.1 percent, while noninterest income edged up 8 percent to P1.2 billion amid higher banking transactions.

Loans and receivables jumped by 19 percent to P306.1 billion, fueled by strong growth in consumer loans such as credit cards and auto, personal and salary loans.

Operating expenses, meanwhile, increased 22 percent to P5.8 billion due to higher manpower and business-related costs to expand the bank's balance sheet and boost technological investments.

Despite a predominant consumer portfolio, EastWest said it managed an improved cost-to-income ratio of 58 percent.

As of end-March this year, the bank's total assets reached P480.4 billion, up 19 percent from a year ago, while total deposits surged 12 percent to P356.6 billion.

Key capital ratios remained healthy, with capital adequacy and common equity tier 1 finishing above minimum regulatory requirements at 13.5 percent and 12.7 percent, respectively.

EastWest recently declared cash dividends totaling around P1.2 billion, equivalent to 20 percent of the net income recorded in 2023, payable on May 31, 2024 to stockholders on record as of May 17, 2024.

The bank reported a net income of P6.1 billion last year, up 32 percent from the P4.6 billion booked in 2022.

EastWest shares closed up P2, or 2.16 percent, to P9.44 each on Tuesday.