EastWest Bank acquires Pasig City rural bank

MANILA, Philippines – Gotianun-led EastWest Banking Corp. has been given the green light to take over a rural bank in Pasig City as part of the company’s continuing expansion.

A disclosure on Thursday showed that the Bangko Sentral ng Pilipinas (BSP) had approved EastWest Bank’s acquisition of Finman Rural Bank Inc.

The company said it had “received the approval from the BSP for the acquisition of up to 100 percent of the outstanding shares of Finman Bank, subject to certain considerations.”

“The purchase will be for a consideration of P42 million. Finman is a rural bank located in Pasig City,” EastWest Bank said.

Finman Bank was incorporated in 1994, its primary purpose being “to engage in the business of extending credit to farmers and tenants as well as rural industries or enterprises.” It started operations in 1998, the company’s website said.

In 1999, the company expanded its services to include acting as a payment or “bayad” center for utility bills.

“The facilities for money transfer through the Western Union, micro-business was launched at the start of the new decade,” the company said. The Finman group also runs non-life insurance, and property management and leasing companies.

EastWest Bank, owned by the Gotianun family’s Filinvest Group, posted a net income of P464 million in the first quarter of the year, up 5 percent from the same period in 2011. The increase was driven by higher interest and fee-based earnings as well as trading gains.

The company listed its shares on the Philippine Stock Exchange last May at a price of P18.50 each. The company raised P5.2 billion from its initial public offering (IPO), which the bank plans to use for branch expansion and information technology infrastructure.

On Thursday, EastWest Bank shares closed 0.04 points, or 0.21 percent, lower at P18.96 each.