Bank of the Philippine Islands to merge with BPI Family Savings Bank

Ayala-led Bank of the Philippine Islands on Wednesday announced plans to merge with its wholly-owned thrift bank subsidiary BPI Family Savings Bank (BFSB), in efforts to enhance the banking experience of its customers.

In a statement, BPI said it will be the surviving entity post-merger targeted to be completed within the year, subject to shareholder and regulatory approvals.

"The integration of both entities will provide considerable advantages to the customers and employees of BPI and BFSB, and present potential synergies that will benefit shareholders," it said.

"The reduction in the gap in regulatory reserve requirements between commercial banks and thrift banks was also a factor in the timing of the transaction," it added.

BPI ended the third quarter of 2020 with total assets worth P2.203 trillion. Its other subsidiaries include BPI Capital Corp., BPI Direct BanKo Inc., BPI International Finance Limited, BPI Remittance Centre Hong Kong Ltd., BPI (Europe) Pld., BPI Century Tokyo Lease & Finance Corp., BPI/MS Insurance Corp., and BPI Investment Management Inc.

Meanwhile, BPI said BFSB is the country's largest thrift bank with P287 billion in assets, P235 billion in deposits, and P227 billion in loans, with approximately 3,000 employees.

"This merger has the best interests of our customers and employees in mind," said outgoing BPI president and chief executive officer Cezar Consing who is also the chairman of BFSB.

Consing is set to be replaced by current Ayala Corp. chief finance officer and veteran banker Jose Teodoro "TG" Limcaoco effective April 22, 2021, as the former reached retirement age in 2019 and consented to extend his term to help ensure an effective transition moving forward.

"As One BPI, our 8.5 million customers will be able to enjoy the full suite of the BPI group's products, via all our digital and physical channels. Similarly, as One BPI, our employees will have the ability to work across a larger, more varied bank, while having continuity of tenure and job level," said Consing.

Shares in BPI closed Wednesday at P83.20 apiece, down by P1.30 or 1.54% from its previous close of P84.50 apiece on Tuesday.—AOL, GMA News