Deutsche Bank exercises option on EastWest Bank

Manila, Philippines -  East West Banking Corp., the Gotianun family’s banking arm, said Deutsche Bank, its international lead manager for the recent initial public offering (IPO), has exercised its overallotment option this month.

In a disclosure to the Philippine Stock Exchange yesterday, EastWest said Deutsche Bank took up an additional 36.715 million shares at P18.50 apiece for a total of P679.23 million.

EastWest closed at P19.22     yesterday, higher than its previous close of P19.10 Wednesday.

The bank raised around P5.2 billion from the sale of 245 million shares, inclusive of the greenshoe option. 

Proceeds from the offering will be used to beef up its branch network and modernize its information technology infrastructure.

EastWest is embarking on a P2 billion expansion program, aimed at more than doubling its branches to 350 by 2014. The expansion is in line with its goal to become one of the largest banks in the country.

From the current 150 branches, it intends to add another 100 this year and further increase this to 350 by 2014.

In the past 10 years, EastWest has had three acqusitions – Ecology Bank in 2003, AIG Philam Savings Bank (2009) and Green Bank (2011).

Aside from widening its reach, the bank also intends to boost its asset base and lending portfolio.

EastWest grew its first quarter net profit 4.9 percent to P464 million on higher interest and fee-based earnings as well as trading gains.

Core earnings from lending as well as fees/commissions rose 18.1 percent, mainly driven by the expansion in assets and consumer loan portfolio.