The Bangko Sentral ng Pilipinas (BSP) has approved the P500-million equity investment of EastWest Banking Corp. in joint venture with insurer Ageas Life.
The BSP approved the initial equity investment in the proposed joint-venture with Ageas Insurance International NV, subject to regulatory conditions.
EastWest Vice President and Head of Corporate Communications Allan Tumbaga said the joint-venture company should start commercial operations before the end of the year.
Finance Officer and Corporate Planning Head Aerol Paul B. Banal said, “The bank has yet to receive approvals from the Securities and Exchange Commission and the Insurance Commission.”
EastWest Banking Corp. and Ageas Insurance International agreed to establish a new life-insurance business. They also agreed to a 20-year exclusive distribution agreement.
Ageas and EastWest Bank have equal shareholdings of 50 percent each.
Under the agreement, Ageas will contribute capital and funding in the initial 12 months for an estimated amount of $65 million, or P2.910 billion.
The bank said the partnership should help East West Bank to become one of the fastest growing banks in the country.
The bank registered a net income of P1.00 7 billion in the first half of the year, slightly lower than the P1.046-billion profit in the same period last year. Its total assets grew 31 percent to P204.9 billion, from the P155.9 billion.
The growth in assets was propelled by a 23-percent expansion in loans to P131 billion. Deposits, on the other hand, grew by 25 percent to P158.1 billion from P126.1 billion a year ago.
As of June 30, 2015, EastWest Bank has a total of 359 branches, with 164 of these in so-called restricted areas.