EastWest Banking Corp. said it has secured board approval to form a brokerage unit and conduct a stock rights offering this year to raise funds to beef up capital.
In a disclosure to the stock exchange, EastWest said its board of directors has approved a stock rights offer this year as well as the “establishment of a wholly-owned insurance brokerage subsidiary for its non-life products.”
The bank said the creation of the brokerage unit is still subject to regulatory approval, while details of the rights offering are still to be finalized by bank management.
“Firm details on the terms and timetable of the Stock Rights Offer will be disclosed once these are finalized. Filinvest Development Corporation (FDC), the bank’s major shareholder, has indicated its support of the stock rights offer,” EastWest said.
In the first nine months of 2014, EastWest Bank’s net profit eased to P1.04 billion from P1.2 billion a year earlier on a lack of trading gains, while its revenues advanced to P4.78 billion from P3.89 billion previously.
EastWest is a commercial bank led by the Gotianum family through parent company FDC and started operations in 1994. The bank holds 100 percent of EastWest Rural Bank Inc. and 99.84 percent of Green Bank (A Rural Bank) Inc.