East-West Bank
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Bullish or Bearish, I will Buy .... Autem Neque Me Invito Tactiost! \m/
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8-15

...nakow lumiit profit Sad

EastWest Bank profit shrinks 11% to P2.2 B in H1

EastWest Banking Corp. continued to drag the earnings of the listed bank, declining by a double-digit rate of 11 percent in the first half.

EastWest Bank booked a net income of P2.2 billion from January to June, P276.5 million lower than the P2.5 billion recorded in the same period last year.

The bank attributed the decline in earnings to the impact of the decision of the Department of Education (DepEd) to suspend the lending program to public school teachers under the automatic payroll deduction system (APDS) of EW Rural Bank.

Antonio Moncupa, vice chairman of EastWest Bank, said the Gotianun-led bank remains committed to DepEd teachers despite the issues that affected its rural bank subsidiary in the first half.

“EW Rural Bank is proud of its contribution to push significantly lower lending rates to teachers and give them access to credit. The bank will continue to strongly advocate not only access and lower rates but equally important, inclusive lending programs and equality among lenders. Our teachers deserve nothing less,” Moncupa said.


Until late June, the lending program to public school teachers under the APDS was suspended as the DepEd worked on the new guidelines.

While the new guidelines are out and the credit is now available to teachers, Moncupa said there is still the issue on the priority of deduction among lenders.

EW Rural Bank is primarily into salary loans to public school teachers. The issue had adversely affected the operations of the rural bank in terms of lost income opportunity and provisions with total after tax impact estimated at around P600 million in the first half.

Excluding its rural banking business, EastWest Bank’s net income increased by 12 percent.

The bank’s net interest income climbed by seven percent to P9.6 billion in the first semester, driven by the increase in consumer loans. Excluding its rural bank business, its consumer portfolio of auto, home and personal loans increased 13 percent.

The increase in consumer loans allowed EastWest Bank to minimize the margin compression that happens when interest rates rise as adjustment in loan rates lag the increase in deposit costs.

Fees and commissions fell by 23 percent at P2.1 billion due to the lower contribution from its rural bank subsidiary, while trading income contracted 10 percent on account of increasing interest rates and tighter monetary conditions in both the international and local markets.

On the other hand, operating expenses grew by 11 percent to P7.2 billion, primarily due to the increase in higher transaction taxes as the new and higher documentary stamp taxes under the new tax reform law.


source: https://www.philstar.com/business/2018/0...1-p22-b-h1


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The political position of a country affects the stock market of that country. And moreover, the policies of the country also affects the market indirectly. Investors take decisions according to the political position of the country whether to invest or not.
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You know when you have something like financial or bank company in some country like Phillipines or Malaysia you really need to compete with very serious players in global markets like whole Western new world order and it's hard reallyWink
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Banks are the main institutions that run the economy and financial policies. They have exploited the people out of their money. I know that most of the people blame the corporate sector but banks are the main culprits. What do you say guys?
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