EastWest gets BSP OK to acquire rural bank

Gotianun-owned EastWest Bank has received approval from the Bangko Sentral ng Pilipinas for the acquisition of rural bank Green Bank of Caraga. EastWest told the Philippine Stock Exchange on Tuesday that the acquisition of Green Bank will add about P3 billion to its consolidated assets. The lender said most of Green Bank branches will be integrated into EastWest, but its "successful micro finance" model will still be pursued. "We intend to create synergies in the branch channel by finding areas of cooperation between the two banks within the regulatory framework. We think that over time, it will be optimal to integrate most of the Green Bank branches into EastWest even as Green Bank continues to pursue its focus to serve small and micro enterprises," said Antonio C. Moncupa Jr., EastWest president and chief executive officer. Green Bank's 46 branches located nationwide will also add to EastWest's existing network of 117 branches. The acquisition of Green Bank is the third acquisition of EastWest. It acquired Ecology Savings Bank in 2003, and then AIG Philam Savinngs Bank in 2009. As of the first semester of this year, EastWest has assets of P83.1 billion and capitalization of P9.7 billion. Its return-on-equity ratio is at 18.1 percent. --CMA/OMG, GMA News