East West Bank to raise capital
MANILA, Philippines—East West Bank Corp. plans to beef up its authorized capital to P20 billion to fund long-term expansion plans, part of which will be infused by parent firm Filinvest Development Corp.
In a disclosure to the Philippine Stock Exchange on Thursday, the Gotianun-led FDC said its board had approved the subscription of up to P3 billion worth of new common shares in EWB equivalent to up to P300 million common shares with a par value of P10 per share.
EWB recently approved an increase in its authorized capital stock from P8 billion to P20 billion and is set to file applications with the Bangko Sentral Ng Pilipinas and Securities and Exchange Commission to implement this capital build-up.
Because of the bank’s retained earnings worth about P2.33 billion, the bank has long built up stockholders equity worth P10 billion while subscribed capital stock was around P6.87 billion as of end-June last year, based on its statement of financial condition.
EWB ranks 17th largest among the country’s 38 commercial banks. It has a balance sheet of about P88 billion.
The bank has a return on equity of 16.58 percent and return on assets of 1.91 percent as of end-October, making it one of the country’s top-performing banks.
East West Bank had a capital adequacy ratio to risk assets of 15.04 percent, exceeding the minimum 10 percent ratio required by the Bangko Sentral ng Pilipinas as of end-October. Counting only the core or tier 1 capital, the ratio stood at 10.73 percent.
The Gotianun-led bank’s total branch network reached 121 as of end-October, with the eight newest branches set up in Butuan City, 168 Mall, Ozamis City, General Trias, Magallanes, San Pablo City, Iloilo-Iznart and Burgos Circle.
Outside of organic expansion, EastWest acquired Green Bank of Caraga in August, boosting its existing network by 46 more branches.
