A shadow of uncertainty hangs over the Philippine economy, and one of the nation’s leading banks, EastWest Bank, is recalibrating its strategy in response. A recent corruption scandal has dampened investor confidence, leading to a predicted slowdown in consumer loan demand – a critical component of the bank’s business.
Despite this challenge, EastWest Bank’s CEO, Jerry G. Ngo, remains cautiously optimistic. He describes a necessary “modulation” of focus, shifting attention towards other promising sectors while still maintaining a commitment to overall growth. The bank isn’t retreating, but rather adapting to a changing landscape.
The economic headwinds are undeniable. The Philippines’ GDP growth slowed to 3% in the final quarter of 2025, resulting in a full-year average of 4.4% – falling short of the government’s ambitious 5.5%-6.5% target. This marks the weakest annual expansion in over a decade, excluding the severe contraction experienced during the pandemic.
Public spending has tightened, and consumer and business confidence has been eroded by the ongoing scandal. This confluence of factors has created a more challenging environment for economic expansion, forcing EastWest Bank to proactively adjust its course.
The bank’s new strategy centers on aggressive expansion within the corporate, high-net-worth, and small-to-medium enterprise (SME) sectors. While consumer loans still represent the bulk – around 80% – of their P361.7 billion loan portfolio, the bank sees significant potential in diversifying its revenue streams.
Currently, corporate loans comprise only 15-16% of the total portfolio, presenting a substantial opportunity for growth. EastWest Bank aims to increase this share by two to three percentage points in the coming year, anticipating faster expansion in this segment compared to the overall loan book.
The high-net-worth segment is also a key priority, fueled by impressive growth in assets under management (AUM) last year – a rise of 20-30%. Successful client acquisition and a robust platform are driving this momentum, positioning the bank for continued success in serving affluent clients.
EastWest Bank is also laying the groundwork for future growth within the SME sector, recognizing its long-term potential. While still in its early stages, the bank is actively exploring ways to expand its SME loan offerings, though specific targets remain undefined for now.
Despite the economic challenges, EastWest Bank has demonstrated resilience, reporting a 6.25% year-on-year increase in attributable net income to P2.48 billion in the third quarter of 2025. This brought their nine-month profit to P6.62 billion, a substantial 13.81% increase from the previous year.
Recent market activity reflects this positive performance, with EastWest Bank shares experiencing a slight increase, closing at P12.56 apiece. The bank’s strategic shift signals a commitment to navigating the current economic climate and positioning itself for sustained growth in the years ahead.
