EAST WEST Banking Corp. (EastWest Bank) expects strong consumer loan growth this year as it remains bullish on the Philippine economy’s prospects and amid robust demand for credit driven by the younger demographic.
“I think the outlook remains to be positive. We’re a consumer-led economy, and the economy is kind of resilient. Of course, we don’t know what’s going to happen with all the recent news with [US President Donald J.] Trump and his new policies. But we’re very optimistic,” EastWest Bank Consumer Lending Head Lawrence L. Lee told reporters on the sidelines of an event on Thursday.
The Philippine economy expanded by 5.6% in 2024, short of the government’s 6%-6.5% full-year target but slightly faster than the 5.5% print in 2023.
The government targets 6%-8% growth this year.
Since returning to the White House last month, Mr. Trump has rolled out various policies, particularly on tariffs, and immigration, which have roiled global markets.
Mr. Trump this week said he would soon impose reciprocal tariffs on every country that charges duties on US imports, keeping alive fears of a widening global trade war that threatens to accelerate US inflation, Reuters reported.
On Monday, Washington announced new 25% tariffs on all steel and aluminum imports into the United States, leaving trade partners scrambling.
Consumer loan growth will be driven by the Philippines’ young population, he said.
“That age is where you slowly start to earn more, spend more, and obviously, borrow more as you try to meet your aspirations of being able to buy what you want, like a house or a car. So, I think all of those will translate to higher consumer lending… I think our demographic dividend continues to be a key driver of consumer lending and consumer spending,” Mr. Lee said.
In 2024, EastWest Bank’s consumer lending business grew by more than 30%, he said, slightly faster than the rest of the industry.
The bank’s credit card billings hit P116.6 billion last year as its cardholders reached 1.5 million, it earlier said.
Latest Bangko Sentral ng Pilipinas data showed that Philippine universal and commercial banks’ outstanding consumer loans to residents rose by 25% year on year to P1.59 trillion as of December 2024, faster than the 23.3% growth the month prior.
“I would just say it’s aligned with the industry. We want to be always higher than industry because we want to improve our market share. If you’re just aligned to industry, then your market share doesn’t move,” Mr. Lee said.
EastWest Bank Senior Executive Vice-President and Financial Markets and Wealth Management Cluster Head Rafael S. Algarra, Jr. earlier said they expect their loan book to grow by 25%, steady from 2024 level, driven by its consumer segment amid strong demand for credit card, auto loan, and personal loan products.
The bank’s attributable net income jumped by 49.1% to P2.32 billion in the third quarter of 2024, bringing its nine-month profit to P5.81 billion, up by 19.57% year on year.
EastWest Bank shares declined by 10 centavos or 1.01% to close at P9.80 apiece on Thursday. — A.M.C. Sy with Reuters
