Gotianun-led EastWest Bank (EW) booked a net income of ₱1.5 billion for the third quarter (Q3) of 2022, 49% higher
than the second quarter (Q2) of 2022 and 17% better than the same quarter last year of ₱1.3 billion. The recovery
was driven by increases in loans and fixed income securities.

Year-to-date (YTD) net income was at ₱3.0 billion, ₱2.1 billion lower than the ₱5.1 billion in the same period last
year, due to lower trading revenues by ₱2.3 billion. In 2021, trading gains were above normal levels due to the
accommodative monetary policy that drove interest rates to very low levels. Core revenues, excluding trading
income, was at ₱20.4 billion, 4% higher than 2021’s ₱19.5 billion. Return on equity (ROE) was at 6.8%. Total assets
ended at ₱405.2 billion, 2% higher than the previous year.

EW’s net income increased by around ₱500 million in each of the last two quarters or from ₱500 million in Q1, ₱1.0
billion in Q2 and ₱1.5 billion in Q3 as the Bank’s efforts to rebuild its loans and fixed income portfolio continue. Total
loans increased by 10% with consumer loans and business loans increasing by 11% and 6%, respectively. Fixed
income securities were higher by 72%.

Net interest income (NII) stood at ₱17.1 billion, 5% or ₱741.3 million higher year on year (YoY), translating to a 50
basis point (bps) improvement in net interest margin (NIM) to 7.1%. On a quarterly basis, Q3’s 2022 NII was 24%
higher than Q3 2021 and 17% better than Q1 2022, reversing previous quarters’ declines as the Bank’s growth efforts
continue to gain traction.

Fees and other income, meanwhile, were higher by ₱101.8 million YoY or 3% to ₱3.2 billion.

Operating expenses marginally declined by ₱120.1 million or 1% to ₱12.6 billion. Provisions for losses were higher
by ₱1.4 billion YoY, or 65% to ₱3.5 billion. The Bank believes that the current level of provisions is adequate as it
shakes off the residual adverse impact of the pandemic.

Deposit level was steady at ₱319.1 billion. The Bank started to deploy its liquidity buffers, which were at higher than
normal levels, to fund increases in loans and fixed income securities. “While CASA ratio improved to 80% from the
previous year’s 73%, we expect deposit cost to go higher as the Bank starts to source new deposits and the impact
of higher interest rates start to manifest. We also expect some CASA depositors to shift to better yielding time
deposits as opportunity costs of holding CASA increase.” EW Head of Retail Banking, Gerry Susmerano said.

EW’s capital ratios improved to 13.9% and 13.1% for Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1)
ratio, respectively. These were well above regulatory requirements. The Bank aims to maintain a CET1 ratio of 12
to 13 percent, which it deems appropriate given its business model.

Despite the global slowdown, the Philippine economy is still expected to meet its full year growth estimates of at
least 7%. The Bank is monitoring macroeconomic developments and remains cautiously optimistic that the
economic backdrop will continue to be supportive of its growth plans.

“Net income for 2022 is expected at ₱4.5 billion with 4th quarter at ₱1.5 billion or ₱6.0 billion on an annualized basis.
While the income level is expected to be flattish, unlike 2021 when quarterly income was on a decreasing trend due
to loan run-offs this year, income is on the uptrend as the Bank started to recover lost loan volumes and has rebuilt
its fixed income portfolios.” EW President, Jackie Fernandez concluded.