EAST WEST Banking Corp. (EastWest Bank) is looking to raise up to P10 billion from bond issuances, although the timing will depend on market conditions, its top official said on Wednesday.

“We’re looking at a bond issue. We’re preparing at the moment for a bond issue, but we will not hit it until the price is right,” EastWest Bank Chief Executive Officer Jerry G. Ngo said on the sidelines of the launch of the lender’s new digital banking app.

He added that the bank has already tapped an advisor for the issue.

EastWest Bank could issue bonds worth up to P10 billion in tiers and in varying tenors, he added.

Mr. Ngo said he expects the Bangko Sentral ng Pilipinas (BSP) to cut rates by another 25 basis points (bps) before the end of the year as the US Federal Reserve is also expected to start its own easing cycle by next month.

The BSP’s policy-setting Monetary Board on Aug. 15 slashed its policy rate by 25 bps to 6.25%, marking its first easing move in nearly four years.

“I think the expectation (for the Fed) now is… one cut in September, and I think there’s another one coming up in November. So, I think the BSP will be very hard-pressed not to follow suit,” Mr. Ngo said.

EastWest Bank’s margins are expected to improve as benchmark interest rates go down, he added.

“We’re a consumer-focused bank. So, what happens is we’re a negatively gapped balance sheet. What that actually means is that we have long-term assets that are priced on a fixed basis, so as funding costs come down, the margins will be higher,” he said.

For every 25-bp rate cut by the BSP, Mr. Ngo said he expects a 5- to 10-bp expansion in their net interest margin.

Loan pricing will also improve as new bookings will be based on the lower benchmark rates, he added.

NEW DIGITAL BANKING APP
Meanwhile, EastWest Bank on Wednesday launched a new digital banking app as it looks to streamline its online services.

“We’re making a beginning of a new digital banking era for EastWest Bank. The launch of EastWest EasyWay represents our vision for the future of banking: one that is intuitive, seamless, and more importantly, customer-centric,” Mr. Ngo said in a speech during the app’s launch on Wednesday.

EasyWay is available on the App Store and Google Play Store.

The bank aims to onboard 40% of its total clientele of 2.6 million to the app, he said.

EasyWay currently has 500,000 users, he added, with 170,000 users still needing to be migrated to the new app as EastWest Bank is targeting to phase out its old app by November.

The new app will be part of the lender’s range of digital services that include EasyBiz, Komo, ESTA, and EWPay.

It allows users to pay bills, manage accounts, loans, and credit cards, as well as transact. It also features 24/7 customer support.

Mr. Ngo said they will roll out more features in the coming months, such as wealth management and accounts, mobile check deposit, credit card and loan application, and quick-response or QR fund transfers and payments.

The lender is also planning to introduce a business-focused app in the coming months as part of a pipeline of digital innovations, he added.

EastWest Bank saw its net income rise by 3.69% year on year to P1.79 billion in the second quarter as its retail loans continued to grow.

Its share price went down by four centavos or 0.44% to end at P9.01 apiece on Wednesday. — A.M.C. Sy

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