{"id":330181,"date":"2024-11-04T11:33:04","date_gmt":"2024-11-04T03:33:04","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=330181"},"modified":"2024-11-04T11:33:06","modified_gmt":"2024-11-04T03:33:06","slug":"trade-the-news-ews-earnings-boosted-by-securities-trading-gains","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/trade-the-news-ews-earnings-boosted-by-securities-trading-gains\/","title":{"rendered":"Trade the News: EW’s earnings boosted by securities trading gains"},"content":{"rendered":"\n
Potential Impact of this News<\/strong><\/td>POSITIVE on the stock price<\/strong><\/td><\/tr>
Company<\/strong><\/td>EastWest Banking Corp.<\/td><\/tr>
Stock Code<\/strong><\/td>EW<\/td><\/tr>
Long-term Recommendation on the Stock<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 10.94<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

EastWest Banking Corp. (EW) posted a 20 percent growth in net income to P5.8 billion for the first nine months of 2024 on the back of higher income-generating capacity, boosted by favorable securities trading in the third quarter.<\/p>\n\n\n\n

In a disclosure to the Philippine Stock Exchange, the bank said its net income for the third quarter jumped 49 percent to P2.3 billion from the same quarter last year.<\/p>\n\n\n\n

\u201cOur September results reflect our sustained momentum across key segments. While we benefitted from the trading environment, the strength of our core businesses continues to drive our overall performance,\u201d said EastWest Chief Executive Officer Jerry G. Ngo.<\/p>\n\n\n\n

EastWest\u2019s net revenues rose 26 percent to P32.2 billion for the period, compared to the same period last year.<\/p>\n\n\n\n

Net interest income grew 23 percent to P25.1 billion, bolstered by the Bank\u2019s focus on consumer lending, which now accounts for 83 percent of its total loan portfolio.<\/p>\n\n\n\n

This focus helped maintain a strong net interest margin (NIM) of 8.1 percent, well above the industry average.<\/p>\n\n\n\n

Non-interest income jumped 39 percent to P7.1 billion, driven by fees related to consumer lending and other sources. Securities trading income, which amounted to P1.4 billion, also benefitted from the easing interest rate environment.<\/p>\n\n\n\n

Excluding trading income, revenues still grew by a healthy 23 percent, reaching P30.8 billion.<\/p>\n\n\n\n

Operating expenses increased by 23 percent to P17.9 billion, aligned with the Bank\u2019s growing business. Despite this rise, the cost-to-income ratio improved to 55 percent, demonstrating the Bank’s operational efficiency amidst revenue growth.<\/p>\n\n\n\n

EastWest\u2019s total assets expanded by 12 percent to P497.0 billion, with loans and receivables increasing by 13 percent to P321.3 billion, led by a strong 17 percent growth in consumer loans.<\/p>\n\n\n\n

Personal loans grew by 52 percent, credit card loans by 35 percent, and auto loans by 11 percent.<\/p>\n\n\n\n

Deposit growth, particularly from CASA deposits, also saw a 10 percent rise to P371.0 billion, with a CASA ratio improvement to 79 percent.<\/p>\n\n\n\n

(News Source: Manila Bulletin<\/a>)<\/em><\/p>\n\n\n\n

<\/div>\n\n\n\n

This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Take advantage of the price opportunity that might arise when the news hits. Trade the news!<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1371],"tags":[],"class_list":["post-330181","post","type-post","status-publish","format-standard","hentry","category-trade-the-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330181","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=330181"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330181\/revisions"}],"predecessor-version":[{"id":330183,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330181\/revisions\/330183"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=330181"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=330181"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=330181"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}