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June 23, 2024

Gotianuns to double balance sheet of EastWest Bank in 5 years

East West Banking Corp. headed by bankero Tony Moncupa aims to double its balance sheet in the next five years once uncertainties over the COVID-19 pandemic and the Russia-Ukraine war clear.

“We are hopeful that the pandemic and the Ukraine situation will clear up and we can resume work on the plan to double the balance sheet within the next five years,” Moncupa said.

EastWest Bank said its balance sheet is much more resilient in terms of liquidity and capital adequacy.

The capital adequacy ratio of the Gotianun-led bank improved to 15.6 percent last year from 13.8 percent in 2020, while its common equity tier 1 ratio increased to 14.5 percent from 12.6 percent.

Both ratios are well above regulatory minimums set by the Bangko Sentral ng Pilipinas (BSP) and the Bank for International Settlements (BIS).

EastWest Bank intends to deploy its excess capital as it rebuilds its loan portfolio that has been affected by the slow recovery in consumer loans.

The listed bank targets a CET1 ratio of between 12 and 13 percent this year.

“The challenge is, we need to scale up to leverage the bank’s capabilities,” Moncupa said.