1.

Mission Statement
For our chosen markets
By providing them with excellent service in the delivery of integrated
and innovative products, responsive to their current and future financial
needs, at the best value.
For our employees
By continuously providing them with opportunities to develop their full
potentials and by giving recognition and rewards commensurate to their
contribution.
For our community
By committing ourselves to improving the quality of life of those
around us through the support for various charities and involvement in
outreach activities.
For our regulators
By uncompromisingly adhering to the highest standards of business
ethics and corporate governance. For our shareholders, by managing the
bank professionally and prudently to consistently achieve optimal possible
returns.

2. Key Objectives

Our expansion was a necessary competitive response. We needed to

expand quite massively because our competitors have much more branches.
Otherwise, we will get clobbered.

This is part of the vision set by the board to put East West among the
ranks of relevant banks.
It started sometime in 2010. The board believed that the country will
see favorable economic conditions that will likely continue far longer than
what we have seen before.
However, with better times, everybody will likely do some expansion.
And that will result in heightened competition and put pressure on margins.
That could even eventually precipitate consolidation.
To stay competitive and be a consolidator rather than a consolidatee,
East West will have to be bigger and more efficient than it was.
 That means East West should attain economies of scale. Since
we are relatively smaller than most banks, we need to do it differently from
how our competitors are expected to act.
That is the reason why we built almost 300 branch stores in three
years. It was a rather audacious, yet untested approach then.
We needed the reach. We needed to project East West nationwide.
As a retail bank, the board saw this as the best path for East West
towards attaining its vision of a bank that is known as a good place to work
for, quality service, and competitively priced products and reasonable
returns for investors.
East West will be a bank that is relevant to customers, employees and
investors.

(a) Financial Return Expected

GOVERNMENT SECURITIES

Medium to long term sovereign investments that can provide

steady income payout while securing your principal investment by
the issuer or the Philippine Government. Best if you are looking
for a dependable income higher than the regular Time Deposit. It
is relatively a safe investment and yet allows you to diversify your
investments.

Fixed Rate Treasury Note (FXTN)

Medium to long term negotiable instrument in peso currency that
are interest bearing and can be traded in the secondary market
before its maturity as issued by the Philippine Government.

Retail Treasury Bond (RTB)

Retail Treasury Bonds is like Treasury Notes but are usually longer
in maturity, a negotiable instrument that are interest bearing and
can be traded in the secondary market before its maturity as
issued by the Philippine Government.

Treasury Bills (T-BILLS)

Short term sovereign investments in peso currency that has
maturity of one year or less which can be traded in the secondary
market before its maturity.

Republic of the Philippines (ROP) Bonds

 An alternative bond investment in US Dollar currency, a medium
to long term negotiable instrument issued by the Philippine
Government.

CORPORATE BONDS

Bonds that are medium to long term negotiable instruments

issued by Corporations registered in SEC.

(b)Degree of Efficiency Required

BOOKI COUPO TAX

SECURI CURREN TEN NG RAT N
ISSUER
TY CY OR AMOU E PAYME FEATU
NT NT RE
Interes
t
Philippin 2 to income
Php
e 25 Fixe Semi- subject
FXTN PHP 100,00
Govern year d Annual to 20%
0.00
ment s final
withold
ing tax
Interes
t
Philippin 10 to income
Php
e 25 Fixe Quarter subject
RTB PHP 100,00
Govern year d ly to 20%
0.00
ment s final
withold
ing tax
Interes
t
Philippin income
91 to Php
e Fixe subject
T-BILLS PHP 364 100,00 None
Govern d to 20%
days 0.00
ment final
withold
ing tax
 USD Semi-
Philippin 3 to
100,00 Annual No tax
e 25 Fixe
ROP USD 0 / (or) as applica
Govern year d
200,00 prescri ble
ment s
0.00 bed
Interes
SEC-
t
register
5 to Quartel income
ed Php
CORP 15 Fixe y (or) subject
Philippin PHP 100,00
BONDS year d Semi- to 20%
e 0.00
s Annual final
corporat
withold
ions
ing tax

(c) Size of Loans or Credit on Offer

Auto Loan
Let EastWest Bank be your financial partner in purchasing your BRAND NEW
or SECOND-HAND VEHICLE. Enjoy simpler and faster loan processing and
avail of low interest rates.

PLUS, experience the following advantages:

Wide Acceptability of Vehicles

Affordable Down Payment

Easy-on-the-Pocket Amortization

Flexible Payment Terms of 12 months to 60 months

Convenient Payment Options:

o Issuance of Post-Dated Checks (PDCs)

o Automatic Debit Arrangement (ADA) against an EastWest Bank

deposit account
Auto Loan Rates

With One-Month
Standard Rates
Advance

12 months 4.95% 4.20%

18 months 7.5% 6.70%

24 months 10.75% 9.85%

36 months 17.5% 16.5%

48 months 24.10% 23%

60 months 32% 30.75%

*Rates are subject to change without prior notice.
Home Loan

You can now own your dream home with rates that are lower than ever at
flexible loan terms. Start living your dream with EastWest Bank and apply
TODAY!

Home Loan Rates

Rate Fixing Regular Home Loan Home Equity

1 year 5.50% 6.00%

2-3 years 6.25% 6.75%

4-5 years 6.75% 7.25%

6-10 years 8.50% 9.00%

11-15 years 9.50% 10.00%

16-20 years 11.00% 11.50%

21-25 years 11.00% 11.50%

26-30 years 11.00% 11.50%

Fixed Term Rate Options

Enjoy total flexibility with our competitive interest rates. Choose your own
fixed term rates beginning at 1, 3, 5, 10, 15, up to 30 years and protect
yourself against frequent rate fluctuations.

Payment Schemes

EastWest Bank Home Loan gives you the longest payment option. Make
your amortization light and easy by stretching your loan term up to 30
years.

Loan Purpose
 Top-up Loan

Availment of the paid-off portion of the existing loan for any purpose

Home Equity

A multi-purpose loan for personal consumption such as, but not limited
to, travel, medical treatment, education, business loans, etc.

Home Improve

A type of loan used to finance the construction or renovation of any

improvements on an existing residential housing unit.

Home Construct

A type of loan used for home construction

Reimbursement

A loan used to reimburse the borrower for his/her purchase of a

residential property bought within 1 year based on the transferred
TCT/CCT

Home Acquire/ Condo Acquire

A loan used to finance the acquisition of a house, townhouse,

condominium, or a residential apartment (with a maximum of four
doors)

Lot Acquire

A loan used to finance the purchase of a residential lot

Personal Loan
Whatever your dreams and desires are,
EastWest Bank Personal Loan is the quick and
easy financial solution that helps you get the
cash you need. EastWest Bank Personal Loan is
an unsecured and non-collateralized consumer
loan that is granted to qualified individuals for
their personal use. This loan facility is multi-
purpose and comes in affordable fixed equal
monthly installments.

Enjoy the following benefits of EastWest Bank

Personal Loan:

Multi-purpose Versatile loan facility

designed to suit your needs

Young Adult Buy or accessorize

your car / buy gadgets

Family Formation Plan your

wedding / fund your childrens
education / plan a vacation

Family Maturity Celebrate special

milestones / home improvement /
pay-off bills

Retirement Settle your medical

bills

No Co-maker, No Collateral
Requirement Cash solution for all your
needs. Increase your financial flexibility
through loanable amounts ranging from
Php25,000 to Php2,000,000 (subject to
our approval).

Flexible Terms Choose among our

payment terms 12, 18, 24 and 36
months to make your installments very
affordable.

Competitive Interest Rates Manage

your cash flow and enjoy low interest
 rates. See table of Interest Rates below.

Convenient and Fast Processing Apply

within the comfort of your home or office.
In addition, get your loan proceeds via
Managers Check or credit to your
EastWest Bank nominated account.

Pick up at the Head office The

bank will release the loan proceeds
by issuing a Manager's Check. The
client is required to pick up the
check from the head office of
EastWest Bank.

Delivery and Deposit to Account

A messenger will deliver the loan
documents to the client's delivery
address for sign-off and pick up the
Post-Dated Checks. Requirements
will be returned to the head office.
If all requirements are complete,
the loan proceeds will be deposited
to the client's account.

*Delivery option is available for

selected areas with a minimal
delivery fee.

Table of Interest Rates

With Existing Credit Card for at least 12 Months

Monthly Factor Contractual Effective Interest

Rate Rate Interest Rate Rate*

0.098233
1.49% 31.51% p.a. 40.56% p.a.
3
 0.071455
1.59% 33.54% p.a. 42.13% p.a.
6

0.057566
1.59% 33.19% p.a. 41.00% p.a.
7

0.044677
1.69% 34.01% p.a. 41.49% p.a.
8

Without Credit Card/With Credit Card less

than 12 Months

Month Contractual Effective

Facto
Tenor ly Interest Interest
r Rate
Rate Rate Rate*

12
0.102 51.99%
mont 1.89% 39.53% p.a.
2333 p.a.
hs

18
0.074 50.47%
mont 1.89% 39.39% p.a.
4556 p.a.
hs

24
0.060 49.01%
mont 1.89% 38.85% p.a.
5667 p.a.
hs

36
0.046 46.44%
mont 1.89% 37.53% p.a.
6778 p.a.
hs
*Based on Loan Amount of Php100,000 and
Processing Fee of Php1,500. Per BSP Circular
No.730, EIR is the rate that exactly discounts
estimated future cash flow through the life of
the loan to the net amount of loan proceeds. It
is the rate that best measures the true cost of
credit.

Processing of application will take 3 to 5

 banking days. Release of loan proceeds to the
client will take another 2 banking days for pick
up and 2 to 4 banking days for the delivery
and deposit to account option.

Business Loan

POST-DATED CHECK DISCOUNTING LINE

What is Post-dated Check Discounting?

A credit accommodation wherein a borrower endorses his Trade PDCs to the

Bank at a discount.

Trade PDCs arise from the sale of goods or services on credit by a Supplier
(the borrower) to a Buyer (the PDC issuer).

Benefits of PDC to the Businessman:

Addresses cash shortages (bridges receivables and payables)

Allows him to take advantage of business opportunities

Collateral-free loan product (subject to some eligibility criteria)

Stand-by LINE product (at clients discretion when to use it)

REVOLVING CREDIT FACILITY

RCF is a revolving credit line that can be accessed via check issuance.

RCF Benefits to the Businessman:

Addresses cash shortages (bridges receivables and payables)

Allows him to take advantage of business opportunities

 Stand-by LINE product (at clients discretion when to use it)

Convenience of Availment

TERM LOAN

Term Loan is a one-shot loan usually available for purpose of capital expenses.
Maximum tenor of Emerging Enterprise Lending Term Loan is 10 years.

Pre-owned Properties for Sale

Find a property that suits your budget.

All offers are subject to management approval.

Sale of these properties are on "as-is, where-is" basis.

Prices NOT applicable to buyback by former owners.

Pre-owned Cars for Sale

Find a car that suits your budget.

Sale shall be on an "AS IS WHERE IS" basis.

Unit and prices are subject to change without prior notice.

Inadvertent and excusable errors in the vehicle condition and

description shall not be deemed as misrepresentation on the part of
the Bank.

Credits
EastWest Credit Cards
EastWest Priority Banking Visa Infinite Credit Card
An exclusive* world for the global elite.

Discover enriching experiences and privileges that only your

EastWest Priority Banking Visa Infinite Credit Card can provide. We have a
host of premium offers and excellent benefits that befit your lifestyle and
status.
EastWest Practical MasterCard
The practical way to life's essentials!

Enjoy low rates and fees with your EastWest Practical

MasterCard. Avail yourself of low monthly interest rate of
3.25% for supermarket, gasoline and drugstore purchases,
and 3.49% for other purchases.
 DLSAA MasterCard
Engage the animo.

Earn rewards points on your purchases which you may

redeem for cash rebates, annual fee waiver or donate to
DLSAA projects.

(d)Service Quality

In the current competitive business world, firms analyze

consumers attitudes and opinions since these have an impact on long
term demand and profitability. This is also applicable in the banking
industry, especially as customers become more demanding and
financially literate.
The importance of service quality rests on the fact that this is a
pre-condition for ensuring loyalty and for attracting prospective
customers. Prior literature has identified various dimensions which
impact on service quality and the latter tends to be more challenging
to measure in service industries such as banking.
Banks also focused more specifically on banking services being
offered in an electronic context, identified the following dimensions in
this respect: convenience/accuracy, feedback/complaint management,
efficiency, queue management, accessibility and customization,
empirically found that the dimensions which proved most important
overall were: responsiveness, reliability, access, ease of use, accuracy
and product variety. In this paper, we focus on the following five
service quality dimensions on the grounds that they recur frequently in
prior studies: (1) reliability, (2) responsiveness, (3) communication, (4)
access and (5) security.

These concepts are described hereunder:

Reliability: This refers to the promptness of delivering the requested
service in an accurate way and in line with advertised attributes.

Responsiveness refers to delivering services and dealing with problems

in a timely and convenient way.
 Communication: Both online and traditional communication methods
entail that customers receive clear messages in terminology which
they can understand. Communication should also be reliable,
empathetic and confidentially transmitted.
Access refers to the means through which customers can avail
themselves of services provided by the bank. Providing access entails
restraining waiting time and making services available in convenient
locations, possibly on a twenty fourseven basis. Extending the
concept to comprise availability for help, and access to ones bank
account even when abroad.

Security: defined security as the autonomy from danger, risk or doubt,

extended the concept to include confidentiality obligations.
Considering the security aspect in the context of IB, it may also be
associated with safe processing of online transactions and preventing
unauthorized access to bank accounts and personal information.

3. Market Assumptions

The asset base of the bank has been growing at a snails pace and this
may be a cause for concern in the long term
Cash dues from other banks have increased and it signifies the weak
credit terms of the bank which may have a debilitating effect on the
performance
Total equity of the bank has increased and this signifies a dilution in
the ownership

4. Competitive Strength Evaluation

The bank offers a variety of banking and financial services
through a network of around 110+ bank branches operating in
the US, China and Hong Kong
It is expanding its product portfolio by acquiring its competitors
in various locations
The company has focus on industries with cross-border growth
potential drives its bridge banking strategy. The dedicated
banking experts, with specialized knowledge in key growth
sectors, keep East West Bank at the forefront of opportunity in
the U.S. and Greater China.
Good brand visibility in the domestic banking circuit in US

5. Assessment of Opportunities
 Opportunities
The US banking industry which suffered in the wake of the financial
crisis seems to have recovered and this provides better opportunities
to the banks
The global asset management and custody banks sector is growing at
a rapid pace. It can explore into this untapped potential to generate
more profits
It can as well expand in the other developing countries as they also
offer a growth potential for the bank
Threats
The US government framed the Dodd-Frank Act, significantly
restructuring financial regulation in the US. These severe changes in
regulations by US Federal government may affect operations and
increase costs
Since the start of the global financial crisis, banking industry in the US
has been undergoing a series of consolidations which could impact the
margins
Increasing number of online attacks may indirectly affect the revenue
for the bank

6. Market Portfolio Strategy

The team identified that the required solution had to have the ability to
match the banks current data volume and be able to handle
significant increase in data volume as it continues to grow its branch
network. Broadly outlined, the solution would have to:
reconcile data from over 10 different source systems run on a variety
of platforms ranging from Sybase to Oracle
be flexible enough to handle and configure data enrichment and data
cleansing rules
process hundreds of thousands of transactions daily
prepare dozens of regulatory report extracts
calculate Capital Adequacy Ratio
be fully scalable to support expansion.
The project kicked off with the implementation of Wolters Kluwer
Financial Services general ledger solution, a component of their Finance
module. This solution is supported by a solid foundation, built on a financial
data architecture that handles both risk and financial data, and provides the
bank with timely, granular and more accurate reporting.

7. Strategic Changes
 Overall, Eastwest Bank has a solid solution that is flexible to
cater for current and future requirements for the complex and detailed
reporting required by EastWest Bank senior management for business
planning, and by the BSP for compliance. The solution also has the
flexibility to support new products and to interact with other
internal/external systems and is based on a common architecture and
best practices across international operations.

8. Action Plans for Implementation

With six consecutive years of record earnings, East West Banks

unique focus and strategy in the U.S. and Greater China continues to
pay dividends. Demand for our knowledge, services and capabilities is
growing on both sides of the Pacific. Although we may experience
shortterm growing pains due to increased regulatory expectations and
market sentiments, the investments we make in people, technology,
and the communities we serve will allow us to capitalize on future
business opportunities. We will maintain focus on high-growth
industries, stay ahead of market developments, and continue to thrive
in the years to come.
EastWest Bank also benefits from seamless compliance with
Basel Accord and IFRS requirements via Wolters Kluwer Financial
Services Regulatory Update Service (RUS) a subscription-based
service incorporated into its regulatory reporting solution, and
maintained by our team of experts. It ensures that our solution is kept
up to date with the on-going changes in regulation and local
requirements on a continuous basis, minimizing risk of non-compliance
and the associated cost to stay up-to-date.

For the purposes of internal reporting requirements, accounting

reports are generated dynamically based on bank-specific reporting
structures. This internal reporting comprises information on the banks
net income, sub ledger and trial balance for the banks senior
management, financial management group, and accounting. From this
ledger, tax reporting and financial statements for multiple GAAPs are
generated automatically

9. Expected Financial Results

10. Project Review or Evaluation

By being a part of BYDs business journey in the U.S. since the

beginning, East West Bank established a solid foundation of trust and
loyalty. Subsequent to opening their North American headquarters in
Los Angeles, BYD has added five additional facilities in the U.S., which
East West Bank helped finance. In addition, as their primary bank in
North America, we provide both foreign exchange and treasury
management services that help BYD manage daily transactions that
flow through their operations in the U.S., Canada, and South America.
The relationship we built with BYD in the U.S. also extends to China;
our Shenzhen branch provides BYDs head office with financing to
support their business development initiatives.
Appreciating our willingness to go above and beyond traditional
banking, BYD continues to expand its relationship with East West Bank
and also adds to our business through referrals. It is gratifying to see
our bridge banking approach and the values we hold dear working
take care of your customers and receive care in return. We look
forward to being a part of BYDs success story for many years to come.

East West continues to grow our customer base and our balance sheet
profitably and prudently, while making investments to strengthen our
internal infrastructure. We are examining all systems, controls and
processes with a critical eye, and making the necessary upgrades to
ensure that they are scalable for future growth. We have implemented
a bank-wide operational excellence initiative with our associates
taking ownership to do the right thing, the right way, every time and
relentlessly improving processes through teamwork and problem
solving. By fostering a spirit of collaboration, we achieve measurable
results.