EastWest clears regulatory hurdle for merger
East West Banking Corp. has secured the first of the regulatory
approvals required for its proposed merger with Mindanao-based rural
bank Green Bank (A Rural Bank), Inc.
"The Philippine Deposit Insurance Corp. (PDIC) has granted its consent
to the proposed merger of East West Banking Corp. and Green Bank (A
Rural Bank), Inc., with EastWest as the surviving entity," a disclosure
to the stock exchange read on Friday.
The approval of the Bangko Sentral ng Pilipinas and Securities and
Exchange Commission is still needed to fully implement the merger.
EastWest Bank took over Green Bank, based in Butuan City, in August 2011.
The acquisition was done to help EastWest Bank engage in lending to
micro and small borrowers, the Gotianun-led bank earlier said. Green
Bank has 46 branches across the countryside.
As of October, EastWest Bank had a total of 347 branches, including that
of its rural bank subsidiary. It aims to expand its network to 400
branches by the first quarter of 2014.
It has been aggressive in its expansion plans, acquiring Ecology Savings
Bank, Inc. in 2003; AIG Philam Savings Bank, Philam Auto Finance and
Leasing, Inc. and PLF Holdings in 2009; and Finman Rural Bank, Inc. in 2012.
EastWest Bank saw its net income jump 25.37% to P1.7 billion as of
September from last year. Its capital adequacy ratio -- a measure of
financial strength -- stood at 17.1%, well above the central bank's 10%
minimum requirement.
EastWest Bank's shares remained flat at P25 apiece on Friday. -- Diana
Jean B. Evite
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