East West Banking Corp. will manage the retail business of Standard Chartered Bank (SCB) Philippines following an agreement between the two lending institutions.
In a disclosure to Philippine Stock Exchange on Friday, EastWest announced that it acquired Price Solutions Philippines Inc. (PSPI), a wholly owned subsidiary of SCMB Overseas Ltd. providing sales and marketing services to SCB PH Branch for credit cards and personal lending products.
It also acquired Assurance Solutions Insurance Agency Inc. (ASIA), a wholly owned subsidiary of SCB that provides sales and marketing services directed exclusively to SCB’s clients for bancassurance products
Subject to regulatory approval, the acquisition will migrate SCB’s credit cards, personal loans, wealth management and retail deposits to EastWest.
EastWest said it would work closely with SCB PH in the coming months to collaborate on a range of retail banking opportunities and to provide a seamless transition for the retail banking clients and staff to EastWest, the statement said.
Anirvan Ghosh Dastidar, chief executive officer of SCB PH, said the agreement with EastWest for Standard Chartered’s retail business in the Philippines is aligned with a global strategy to focus on retail markets where Standard Chartered has scale.
“Standard Chartered remains fully committed to the growth of our corporate and institutional banking business in the Philippines which is a core part of our ASEAN [Association of Southeast Asian Nations] network. Our agreement with EastWest will allow us to leverage on their scale and product offering to meet the retail needs of our clients. In the meantime, our retail banking clients will continue to have access to all of our existing banking services,” said Dastidar.
For its part, EastWest said it has been building scale and exploring growth opportunities.
Antonio Moncupa Jr., the bank’s president and chief executive officer, said that the bank continues to seek opportunities to grow, especially in the retail and consumer segments.
“We are very pleased to have been chosen by Standard Chartered Philippines as its counterparty in this agreement. We expect this agreement to be value accretive as we further enhance our retail and consumer banking scale. We look forward to future opportunities to assist Standard Chartered in serving the retail banking needs of its corporate and institutional clients,” said Moncupa.
The agreement is expected to be completed within the year, subject to regulatory approvals.