LOCAL brokerage firm Angping & Associates Securities, Inc. has advised investors to buy shares in EastWest Banking Corp., citing rosy earnings prospects following the bank's aggressive expansion.

"With bullish economic fundamentals and increasing liquidity, the bank will benefit from its aggressive expansion as it continues to reach its target or 350 branches in 2014," analyst Brian J. Ramos said.

From 122 branches in 2011, the Gotianun-led bank opened 123 branches last year, raising the total number of branches to 245.

The expansion, however, will result in higher operating expenses until operations normalize in 2015. But the analyst said: "Despite rising costs due to the expansion, it was able to reach a net interest margin of 7% due to their effective strategy of focusing on high-yielding loans and low-cost deposits."

EW shares gained P0.05 to close at P30.05 apiece last week. Mr.Ramos placed the stock's support at P30 and resistance at P32.95. Its price-to-earnings ratio was estimated at 12.1 times this year. - Karen Joyce Q. Ang