June 03, 2014

FDC commits to further strengthen EW

The Philippine Star today reported that Filinvest Development Corporation (FDC) is committed to support the growth plans of its banking subsidiary, EastWest Bank (EW, Buy). EW is looking at acquiring more banks to aid organic growth initiatives. It has also reportedly signified its interest to take part in the recapitalization scheme of United Coconut Planters Bank (UCPB) which is being privatized.

Our take: EW has been growing partly due to its successful acquisitions. A major acquisition like UCPB will help transform EW into a bigger player, putting it in the league of other mid-sized banks such as SECB, CHIB, RCB and UBP. In the meantime, however, integration costs may weigh on the company until full integration is completed. – WealthSec