MANILA, Philippines – The Securities and Exchange Commission has approved the increase in capitalization of East West Bank, the banking unit of the Gotianun family, from P5 billion to P8 billion.
Of the P3 billion capital increase, P450 million has been subscribed and paid for by parent firm Filinvest Development Corp., while P300 million came from FDC Forex Corp.
East West Bank is targeting to end the year with a total of 100 branches, from 80 as of end-December 2008.
With the acquisition of AIG-Philam Savings Bank early this year, East West Bank is aiming to further expand its retail banking business and capture a larger share of the credit card and auto loan market.
Part of the deal also includes the acquisition of Philam Auto Finance (formerly Primus Finance and Leasing Inc.) and PFL Holdings Inc.
East West Bank said the acquisition is expected to further boost its retail footprint, giving it better economies of scale.
With the merger, East West Bank’s assets will increase to P63 billion from P49.924 billion as of end-2008.
Prior to the acquisition, East West Bank was the country’s 20th largest bank in terms of assets and the 14th largest by equity.
The bank posted a net profit of P375 million last year and hopes to nearly double it to P700 million this year, and further to P1 billion by 2010.
Aside from banking, the Gotianun family also has interests in real estate, through Filinvest Land Inc., and sugar manufacturing.