GOTIANUN-LED bank East West Banking Corp. (EastWest) is planning to raise P10 billion from the issuance of high-yielding time deposits which will be used to support its loan business and expansion program.
In a disclosure to the Philippine Stock Exchange on Wednesday, EastWest said the Bangko Sentral ng Pilipinas has recently approved its plan to issue long-term negotiable certificates of time deposits (LTNCD) amounting to P10 billion.
LTNCDs are time deposits that have longer maturity and are higher yielding than regular deposits. These instruments are negotiable and are insured with the Philippine Deposit Insurance Corp. up to the maximum coverage which is currently at P500,000.00 per depositor.
EastWest said last year it planned to tap the capital market for fresh funds to finance expansion plans, including growing its branch network and for potential strategic acquisitions.
The bank reported net income of P2.33 billion as of end-September 2016, up 78 percent year-on-year, while its consumer loan books also increased by 50 percent to P122.6 billion.
EastWest is a commercial bank that started operations in 1994 and is led by the Gotianum family through parent company Filinvest Development Corp. The bank holds 100 percent of East West Rural Bank Inc. and 99.84 percent of Green Bank (A Rural Bank) Inc.