Lower trading revenues dent profit of Gotianun family’s banking arm

EastWest Bank of the Gotianun family saw its earnings fall by 41 percent from January to September due to lower trading revenues.

In a regulatory filing, EastWest Bank said profit declined to P3 billion from P5.1 billion last year.

EastWest said trading gains were above normal levels last year due to the accommodative monetary policy that drove interest rates to very low levels.

For the third quarter, however, the bank’s net income improved by 17 percent to P1.5 billion.

Core revenues, excluding trading income, went up by four percent to P20.4 billion.

The bank said its net income increased by around P500 million in each of the last two quarters or from P500 million in the first quarter, P1 billion in the second quarter, and P1.5 billion in the third quarter as efforts to rebuild its loans and fixed income portfolio continued.

EastWest president Jackie Fernandez said the company’s net income for 2022 is expected to hit P4.5 billion, with fourth quarter generating P1.5 billion or P6 billion on an annualized basis.

“While the income level is expected to be flattish, unlike 2021 when quarterly income was on a decreasing trend due to loan run-offs this year, income is on the uptrend as the bank started to recover lost loan volumes and has rebuilt its fixed income portfolios,” Fernandez said.