notes: EW/EAST-WEST BANKING CORPORATION

COL FINANCIAL DAILY NOTES (20 JUL 2018)

Upgrading BUY due to valuation. We are upgrading our recommendation on EW to BUY while maintaining our FV estimate of Php19.10/sh. Our call is largely based on valuation as EW’s share price has fallen 12.5% since its 1Q18 results, much sharper than the 6.5% decline of the PSEi over the same period. At its current price of Php14.68/sh, the bank is only trading at 0.77X 2018E P/BV, well below the industry average of 1.1X.