BPI to merge 2 remaining thrift bank subsidiaries
Ayala-led Bank of the Philippine Islands (BPI) will merge thrift bank units BPI Direct BanKo Inc., A Savings Bank (BanKo) and Legazpi Savings Bank Inc., as it pushes for a healthier capital base and improved efficiency.
The lender told the local bourse on Thursday that BanKo would be the surviving entity once the move is completed.
“A merger … will result in a stronger and more resilient capital structure for the combined entity, leading to a more efficient use of capital,” BPI said.
“Consolidating the two institutions is expected to support long-term sustainability, capital adequacy and operational flexibility,” it added.
The union will create an entity with about P72 billion in assets, dislodging Sterling Bank of Asia as the sixth-largest thrift bank in the Philippines.
Based on data compiled by the Bangko Sentral ng Pilipinas, BanKo is the seventh-largest thrift bank in the country, with assets amounting to P56.74 billion as of end-June 2025.
Legazpi Savings, on the other hand, has assets of about P15.11 billion.
Once merged, the BPI subsidiaries will have a bigger balance sheet than Sterling Bank of Asia, which has P64.7 billion in resources.
In 2022, parent bank BPI likewise merged with then its biggest thrift bank arm, BPI Family Savings Bank.
Two years later, BPI moved to take over Robinsons Bank Corp. Last January, its CEO Jose Teodoro Limcaoco said that the group targets to transform all Robinsons Bank into BPI branches by year-end.
It ended 2024 with more than 1,200 branches nationwide.
In the first nine months, BPI’s earnings rose 5.2 percent to P50.5 billion. Its revenues climbed 13.2 percent to P142.3 billion. Net interest income also improved by 16.2 percent to P109.1 billion.
Gross loans reached P2.4 trillion, 13 percent higher than last year.
The Bangko Sentral ng Pilipinas again slashed rates last week to prop up the sluggish economy.
When borrowing costs are cheaper, consumers and businesses are more encouraged to take out loans and spend, subsequently pushing the demand for goods and services.
