Ayala-Led BPI and BPI Family Savings to Merge This Year
Bank of the Philippines Islands (BPI) will merge with BPI Family Savings Bank (BFSB), the country’s biggest thrift bank, later this year. BSFB is a wholly owned subsidiary of BPI, which will be the surviving entity following the merger.
The integration of BPI and the thrift bank will give customers access to BPI’s full suite of products, both online and offline. The two banks have around 8.5 million customers between them.
“If our customers and employees are better off, our shareholders will also benefit. This merger is timed to provide us with the platform to help lead the economic recovery that is sure to come,” said Cezar Consing, president of BPI and chairman of BFSB.
BPI’s move to absorb its thrift subsidiary comes on the heels of Bankgo Sentral ng Pilipinas’ move to ease monetary policy in order to encourage banks to keep lending. In its statement, BPI confirmed that “the reduction in the gap in regulatory reserve requirements between commercial banks and thrift banks was also a fact in the timing of the transaction.”
Specializing in housing and auto loans for Filipino families, BFSB is the country’s largest thrift big with over P287 billion in assets, P235 billion in deposits, and P227 billion in loans. Meanwhile, BPI recorded over P2 trillion in assets in 2020.
BPI and BFSB aim to complete the merger by the end of the year, subject to shareholder and regulatory approvals.