BSP okays EastWest Bank-Green Bank merger

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) has given its go-signal for the planned merger of East West Banking Corp. with Green Bank (A Rural Bank) Inc.

In a disclosure to the Philippine Stock Exchange (PSE), EastWest said the monetary authority approved the articles of merger of the two banks last April 2.

After the merger, EastWest will be the surviving entity.

EastWest, said they will now proceed with the merger process and seek the approval of the Securities and Exchange Commission (SEC).

In November last year, the Philippine Deposit Insurance Corp. (PDIC) granted its consent  to the merger.

EastWest, a universal bank owned by the Gotianun family, is planning to use the Caraga-based Green Bank as its tool to widen its presence in Mindanao.

The bank is now doing all the necessary preparations to step up their rural bank operations.

In 2006, EastWest  bought P750 million worth of shares at Green Bank, which has 46 branches.

In June 2012, the bank’s board approved the purchase of 100-percent stake worth P120 million in Finman Rural Bank Inc. in Pasig City.

EastWest has been on the acquisition mode to boost its consumer lending business.

In 2009, it acquired the consumer finance units of AIG bundled into AIG Philam Savings Bank.  In 2003, it also bought Ecology Savings Bank Inc.

In May 2012, EastWest listed its shares at the PSE to comply with the requirement of the BSP to offer the bank’s 10-percent stake to the public.

EastWest Bank is targeting 350 branches and become the 5th largest bank in terms of network by end 2014.

Most of the new branches will be located in eight areas where they have won in a bidding conducted by BSP last year. These areas are Manila, Makati, Pasig, Quezon City, Mandaluyong, Pasay, San Juan and Parañaque.