MANILA, Philippines - After completing regulatory requirements, East West Banking Corp., the banking arm of the Gotianun-led Filinvest Group, has upgraded its status to a universal bank.
In a disclosure to the Philippine Stock Exchange, EastWest Bank said it had received confirmation from the Bangko Sentral ng Pilipinas (BSP) “of their approval of the issuance of Certificate of Authority to Operate (COA) as a universal bank.”
In May this year, EastWest Bank listed its shares at the PSE to comply with the BSP’s requirement to offer at least 10 percent of its stake to the public.
Specifically, EastWest Bank offered 245 million shares at a price of P18.50 per share, raising more than P5 billion to fund its expansion program in the next three years.
In late 2010, the BSP had issued a provisional license to EastWest Bank to operate as a universal bank pending its compliance with other requirements, including the conduct of an initial public offering (IPO).
Antonio Moncupa Jr., EastWest president, said their universal license will allow them “flexibilities” to engage in investment banking activities and expand further their consumer lending and banking services.
“We will be putting up an investment desk within the bank as we have been formally given a universal bank license. But our main customer base will continue to be focused on mid-market clients,” he said.
With the license, Moncupa said they would push through with an aggressive expansion plan of putting up 100 new branches this year and another 100 by 2013. The bank presently has 150 branches nationwide.
By 2014, EastWest Bank is planning to have 350 branches and become the fifth largest bank in terms of network.
Most of the new branches will be located in eight areas where they won in a bidding conducted by BSP last year. These are Manila, Makati, Pasig, Quezon City, Mandaluyong, Pasay, San Juan and Parañaque.
He said EastWest Bank is also projecting more than 20 percent growth in its loan portfolio. It is currently the sixth largest credit card issuer and also the sixth largest in auto loans portfolio.
Last year, the bank acquired AIG Philam Savings Bank, Philam Auto Finance and Leasing Inc. and PFL Holdings Inc. to expand its physical assets, including branch network. It was also able to acquire the credit card business of the American International Group (AIG) in the Philippines.
EastWest Bank is a subsidiary of Filinvest Development Corp., a publicly listed company founded by Andrew Gotianun Sr. in 1955. The Filinvest Group consists of companies engaged in diverse businesses. It operates its real estate business primarily through its majority-owned subsidiaries, Filinvest Alabang Inc. and Filinvest Land Inc.