Filinvest Dev't subscribes to P3-B East West Bank shares

MANILA, Philippines - Gotianun-led Filinvest Development Corp. (FDC) has subscribed to P3 billion or a fourth of the increase in capitalization of its banking arm EastWest Bank Corp.

EastWest Bank raised its capitalization from P8 billion to P20 billion.

In a disclosure to the stock exchange, FDC said it subscribed to 300 million common shares of EastWest Bank with a par value of P10.

The Filinvest Group is one of the country’s leading conglomerates, with interests in real estate through Filinvest Land, financial and banking services, and sugar manufacturing through Pacific Sugar Holdings.

EastWest Bank posted a net income of P1.5 billion as of October last year, down 6.1 percent from the previous level, due to lower trading gains. Net revenues also fell 5.1 percent to P5.9 billion as a result of lower trading income.

Net interest income, however rose 11.4 percent to P3.9 billion as the bank improved its lending businesses and management of its cost of funds.

EastWest Bank has a nationwide branch network of 121. It opened eight new branches last year in Butuan City, 168 Mall, Ozamis City, Gen. Trias, Magallanes, San Pablo City, Iloilo-Iznart and Burgos Circle. It also acquired Green Bank of Caraga in August, boosting its existing network by 46 branches.