Business News

MANILA, June 3 (PNA) -– East West Banking Corp. (EastWest Bank) on Thursday said it will issue up to P5 billion worth of long-term negotiable certificate of deposits (LTNCD).

Issuance of the LTNCD was approved by the bank's Board of Directors during a meeting earlier in the day, EastWest Bank said in a disclosure with the Philippine Stock Exchange (PSE) Thursday.

"We shall disclose the terms thereof as soon as we secure the corresponding regulatory approval," the disclosure added.

LTNCDs are deposit products that have higher returns and longer maturities compared to regular time deposits.

EastWest Bank's latest capital raising activity will be made a month after the bank listed with the Philippine Stock Exchange (PSE) and raised P5.2 billion from its initial public offering (IPO). Part of the IPO proceeds will be used for branch expansion to widen the bank's customer base.

In the first three months this year, the bank registered a 4.9 percent rise in its net income to P464 million, which, in turn, resulted to a 16.45 percent annualized return on average equity and 2.05 percent return on average assets for the bank.

Also, EastWest Bank's total revenues reached P2.12 billion as of end-March this year, up by 34.4 percent over year-ago's P1.58 billion.

Its capital adequacy ratio (CAR), which is a gauge of the bank's financial health, stood at 18.1 percent as of end-March this year.

The bank currently has 144 branches nationwide, an improvement of 31 branches over year-ago's 113 branches.