Gotianun-led bank targets 400 outlets before yearend

CEBU, Philippines -  Gotianun-led universal bank the East West Banking Corporation  is going to capitalize on its stronghold in consumer loans and targets to close the year with 400 branches nationwide.

EastWest Bank, the 14th largest in the country in terms of assets is hitting the emerging cities for its physical expansion this year, to add to its 379 store-branches including the 47 branches of EastWest Rural Bank (formerly Greenbank).

In an interview with EastWest Bank president and chief executive officer  Antonio C. Moncupa Jr., he said while the industry is seeing rapid growth in loans and deposits due to market's potent liquidity, the bank is going to introduce attractive products and services that will provide the market with all-in-one financial solutions that will not only loans and deposits but a provider of multiple financial product.

EastWest Bank executives led by its chairman Andrew L. Gotianun Jr., were in Cebu recently to hold a clients' appreciation event, a gesture of the bank's commitment to be a serious player in the banking service.

At present, there are 18 EastWest branches in the province, the company aims at adding three more branches in Cebu before the year ends.

The bank's distinguishing factor among its competition is its stronghold in the consumer loan market, he said. In fact, the bank is the 6th largest auto-loan lender in the country.

He aside from expanding the physical presence of the bank in emerging cities in the country, its P1.5 to P2 billion allotted capital expenditure for this year, will also be spent in improving the level of its efficiency such as improving its online banking portal, introducing mobile app, and expanding its ATM network, among others.

EastWest Bank, the banking arm of the Filinvest Group, opened 178 branches in the last two years, and acquired the Mindanao-based rural bank Greenbank.

A subsidiary of the Filinvest Development Corp., EastWest Bank is focused on the consumer banking business. Green Bank, meanwhile, is engaged in microfinance.

EastWest Bank’s acquisition of Green Bank in 2011 for P175 million served as its entry point into the lucrative microfinance business.

The Filinvest banking arm said in August 2011 that the acquisition would add P3 billion to EastWest Bank's P83.1 billion in consolidated assets as of end-June of that year, and 46 more branches to its network.

The bank has been aggressive in its expansion plans, acquiring AIG Philam Savings Bank, Inc., Philam Auto Finance and Leasing, Inc., and PFL Holdings, Inc. when these units were put up for sale to help pay down AIG liabilities.

Prior to this, EastWest Bank bought Ecology Savings Bank, Inc. from the Equitable PCI Bank in 2003.

EastWest Bank saw its net income fall 38 percent year-on-year to P455.7 million in the first quarter amid an industry-wide downturn in trading gains, although it touted double-digit growth in its core businesses.