EastWest Bank eyes broad-based growth as governance concerns affect consumer loan demand

EAST WEST Banking Corp. (EastWest Bank) is looking to expand its other business segments as it expects slower consumer loan demand due to lingering weakness in investor sentiment amid the economic fallout from a corruption scandal.

“Obviously, loan demand from consumers will be affected due to a slower economic [situation]. So, it’s a balance. We’re still hopeful. We’re still very, very bullish about the whole thing. But, as you go through the whole thing, you stop and you modulate. And that’s what we’re doing right now, is just modulating it from one focus to the other. But we will still continue to grow and continue to push,” EastWest Bank Chief Executive Officer Jerry G. Ngo told BusinessWorld on the sidelines of a central bank event last month.

Philippine gross domestic product (GDP) grew by 3% in the fourth quarter of 2025, bringing the full-year average to 4.4%, below the government’s 5.5%-6.5% goal. This was slower than 2024’s 5.7% and was the weakest annual expansion since the 3.9% in 2011, counting out the 9.5% contraction in 2020 due to the pandemic.

Officials said tighter public spending and weak consumer and business confidence due to the flood control scandal continued to drag growth,

The Gotaniun-led bank will be more aggressive in expanding its corporate, high net-worth, and small and medium enterprise (SME) segments this year, Mr. Ngo said.

Still, they expect growth to be mainly driven by the consumer business, he said. The official earlier said that about 80% of EastWest Bank’s loan book is made up of consumer credit.

As of end-September, the bank’s total loans stood at P361.7 billion.

Mr. Ngo said corporate loans currently make up about 15-16% of their total portfolio, giving the segment room to grow.

He added that the bank aims to increase the share of corporate borrowings in its total portfolio by two to three percentage points this year, with the segment expected to grow faster than its entire loan book’s expansion.

Meanwhile, the bank also wants to sustain the momentum of its high-net-worth segment as it saw strong growth in its assets under management (AUM) last year.

“The priority banking business is also quite big now. So, we’re trying to push that even further. Client acquisition has also grown quite significantly. The platform has been good,” he said, adding that the segment’s AUMs grew by about 20%-30% last year.

EastWest Bank is likewise looking to further grow its nascent SME segment, Mr. Ngo said.

“The SME loan book is very small. It’s just beginning. We’re trying to see as much as possible how we can push for that. But no target as of this point. It’s a bit too early at the moment.”

EastWest Bank’s attributable net income rose by 6.25% year on year to P2.48 billion in the third quarter of 2025, driven by its consumer book.

This brought its nine-month profit last year to P6.62 billion, up by 13.81% from the same period in 2024.

EastWest Bank shares went up by six centavos or 0.48% to close at P12.56 apiece on Wednesday. — Aaron Michael C. Sy