EastWest Bank completes aquisition of AIG Philam Bank
Makati City, March 16, 2009. East West Banking Corporation (EastWest Bank) announced that it had consummated its acquisition of all of the shares of AIG PhilAm Savings Bank, Inc. (AIGPASB), PhilAm Auto Finance & Leasing, Inc. and PFL Holdings, Inc.. The acquisition closure follows the conditional approval granted by the Monetary Board (MB) on February 26, 2009
EastWest Bank chairman Jonathan Gotianun said, “The Board and Management of the bank are happy that we are moving ahead of schedule. Completion of the acquisition takes us another step closer to the merger of the two institutions.”
Gotianun stated that when the merger of the two institutions takes effect which is expected to be in a few months time, synergies will definitely arise which will result to improved service levels. The combined distribution network of EastWest Bank and AIGPASB coupled with a wider range of product offerings will benefit both banks’ customers. “In due time after the merger, auto and personal loan borrowers and credit cardholders will be able to apply and make payments at any EastWest Bank or AIGPASB branch. EastWest Bank branches will start accepting payments from borrowers of the Cash Facility. Likewise, depositors will be able to deposit in any of the two banks’ branches.”
In keeping with the Bank’s commitment to excellent service, EastWest Bank president and CEO Tony Moncupa added that EastWest Bank will soon correspond with AIGPASB’s customers, business partners, merchants, dealers and service providers. “We are now looking forward to welcoming them to the growing EastWest Bank family,” he said. “We assure them that there will be continuity of service. For instance, AIG credit cardholders can continue using their AIG credit cards until their replacement cards are issued.”
Moncupa stated that there will be no closure of AIGPASB or EastWest Bank branches and emphasized further branch network expansion. “There will be limited relocations and we will ensure that customers will not be inconvenienced in any way whatsoever. In fact, we expect to add eight to 10 more branches which will enhance customers’ access to our products and services and therefore benefit them in terms of convenience.”
EastWest Bank, a subsidiary of the Filinvest Development Corporation (FDC), earlier reported that its combined asset with AIGPASB will total approximately P63 billion. The combined banks will have a total of 89 branches, 54 in Metro Manila and 35 in other key cities and provinces, as AIGPASB adds nine (9) branches to the 80 of East West Bank.
About EastWest Bank
East West Banking Corporation (EastWest Bank) is a subsidiary of the Filinvest Development Corporation (FDC), one of the country’s premier conglomerates, with business interests in real estate development, leasing, financial and banking services and the sugar industry. Through the years, the Bank has successfully capitalized on the financial strength of and synergy from the business organizations under the Filinvest Group.
The Bank has a network of 80 branches, 48 of which are located in Metro Manila and 32 in the provincial areas. It offers a wide range of financial services designed to meet the banking needs and requirements of consumers and its growing corporate clientele. As of December 2008, the Bank’s Total Assets is P49.9 billion, while Total Deposits is P39.4 billion. Auto Loans receivables reached P4 billion while credit cards receivables was recorded at P3.6 billion.
About AIG Philam Bank
AIG PhilAm Savings Bank, Inc. (AIGPASB) is an indirect subsidiary of American International Group, Inc. (AIG), a world leader in insurance with operations in more than 130 countries and jurisdictions. It is also a subsidiary of the Philippine American Life and General Insurance Company, the largest and most diversified insurance company in the Philippines and the undisputed market leader for over half a century.
AIGPASB offers credit cards, auto loans, deposits, priority banking and trust. In July 2007, AIG PhilAm Bank became the first thrift bank locally to issue long-term negotiable certificates of deposit. In December 2007, the Bank entered into an agreement with Ford Credit International, Inc. (FCI) to acquire all of FCI’s shares in Primus Finance & Leasing, Inc. and PFL Holdings, Inc.
AIGPASB has nine (9) branches nationwide – six (6) in Metro Manila and three (3) in the provincial areas. As of December 31, 2008, the Bank’s total deposits level is P9.7 billion. Its auto loan receivables and credit card receivables reached P4 billion and P4.7 billion, respectively.