Malaya Business Insight, 22 January 2013

http://www.malaya.com.ph/~malayaco/index.php/about-us/160-news-flash/22307-eastwest-sees-good-loan-growth-this-year


EastWest Banking Corp., the banking arm of real estate giant Filinvest, yesterday said it expects "healthy" loan growth across all segments this year.

"We expect to report good growth on our consumer loans. I think this is true for the whole industry," EastWest president Tony Moncupa told Malaya Business Insight.

Moncupa stressed that for the whole industry, loans have been growing very well over the last few years.

"For 2012, it should grow around 15 percent after the 19 percent expansion in 2011. Both the corporate and consumer segments are growing," Moncupa said.

For 2012, he said that level is consistent with the expected 6.5 percent GDP growth.

For the first nine months of 2012, EastWest said that its total loans reached P60.97 billion, a 36.1 percent increase from same period last year.

EastWest is one of the fastest-growing banks in the industry in the last six years.

The bank is ranked 17th in terms of assets and deposits and 15th based on total loans out of 37 commercial and universal banks in the country.

EastWest's capital levels had grown 5.7 times or a compound annual growth rate of 37 percent from P2.9 billion in 2006 to P16.5 billion in the second quarter of 2012 from profits, capital infusion by its parent, Filinvest Development Corp., and proceeds from its initial public offering (IPO).

The bank's assets, deposits, and loans have grown at a compound annual growth rate of 23 percent, 20 percent and 25 percent, respectively, from 2006 to the second quarter of 2012.

"(This is) a clear proof of the rapid growth of the company," Moncupa said.

Aside from rapid expansion through acquisitions and mergers with other banks, another expansion program of EastWest Bank is capital buildup, which includes public listing on the Philippine Stock Exchange.

It was traded on the stock exchange starting May 7, 2012, after raising around P5 billion in proceeds from its IPO.

The bank's branches had grown to 245 before the year ended, more than double its end-2011 network of 122.

Moncupa said that the bank's synergy at the moment is directed towards its expansion.

He said EastWest will push an aggressive branch expansion program, aiming to grow its network to 350 branches by 2014.

"We plan to build 100 more (this year)," he added.

He said the bank will spend at least P2 billion for the branch expansion program, considering that each branch costs P7 million to P8 million depending on its size and location.

He stressed that the bank is investing in personnel development and training to support its growing client base and provide better customer services.

The bank is also upgrading its information and technology infrastructure to support more transactions.