The Bank of the Philippine Islands (BPI) has announced plans to consolidate its thrift banking operations by merging BPI Direct BanKo Inc. (BanKo) and Legazpi Savings Bank Inc., with BanKo serving as the surviving entity.
In a disclosure to the stock exchange on Thursday, the Ayala-led lender confirmed that its board of directors had approved the proposal. The move is designed to streamline the group’s structure and enhance financial stability.
“A merger between the two BPI subsidiaries will result in a stronger and more resilient capital structure for the combined entity, leading to a more efficient use of capital,” BPI stated in its disclosure.
The bank noted that consolidating the two institutions supports long-term sustainability, capital adequacy, and operational flexibility.
By unifying the subsidiaries, BPI aims to achieve material cost synergies and establish a single framework for governance and risk management.
Furthermore, the integration promises improved technological capabilities and digital services. BPI projects that the merger will elevate service quality for the combined client base while optimising resource deployment across the organisation.
“The merger is also expected to strengthen the BPI group’s competitive position in key markets and reinforce its market presence while supporting improved customer acquisition and retention for the merged bank,” the disclosure added.
The proposed transaction remains subject to the consideration and final approval of the respective boards and stockholders of both BanKo and Legazpi Savings Bank, as well as regulatory clearances.
This consolidation follows BPI’s major merger last year with the Gokongwei-owned Robinsons Bank Corp. (RBank), which proceeded after securing necessary corporate and regulatory approvals.
That earlier transaction was a significant step in expanding the bank’s footprint, and this latest move appears to be a continuation of BPI’s strategy to rationalise its portfolio and maximise operational efficiency.
Featured image by ilixe48 via Freepik.
