BPI and Robinsons Bank Merger Gets Go-Signal From BSP

Over a year since it was first announced, the planned merger between the Ayalas’ Bank of the Philippine Islands (BPI) and the Gokongweis’ Robinsons Bank finally overcame its final major hurdle with the approval of the Monetary Board of the Bangko Sentral ng Pilipinas. 

According to BPI, the approval came on Thursday (December 14, 2023), but was only made public on Monday (December 18) through a disclosure to the Philippine Stock Exchange.

BPI will be the surviving bank of the merger, subject to certain conditions.

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The merger is expected to take effect on January 1, 2024 subject to the approval of the Securities and Exchange Commission (SEC). 

“The proposed merger will unlock various synergies across several products and service platforms, expand the customer and deposit base of both banks through the merged entity, and, at the same time, by capitalizing on BPI’s expertise and network, enhance the overall banking experience of RBC customers,” the BPI statement said. “RBC’s products and services cater to its corporate, commercial, and retail clients through its 189 branches and branch-lite units (including 14 branches and 14 branch-lite units of its subsidiary, Legazpi Savings Bank), 354 ATMs, and online and mobile banking channels.

“As of 30 June 2022, RBC has total assets of P175.9 billion, including net loans and receivables of P102.4 billion, and total liabilities of P156.0 billion, including deposits of P139.0 billion,” it added.

Robinsons Bank is 99.99 percent owned by JG Summit Capital Services Corp. (59.99 percent) and Robinsons Retail Holdings Inc (39.99 percent). The bank is chaired by Gokongwei Group chairman Lance Gokongwei.

After the completion of the merger, the Gokongwei Group will own about six percent of BPI. Founded in 1851, BPI is the country’s oldest bank, and the fourth-largest in terms of assets (P2.41 trilion as of end-2021), according to Statista.

The Ayalas and the Gokongweis are two of the richest business families in the Philippines. Ayala Corp has interests in real estate and hotels; financial services and insurance; telecommunications; industrial technologies; power; and automotive, outsourcing, among others, while the Gokongwei Group owns businesses related to banking and financial services, real estate, air travel, retail, petrochemicals, and others.

Esquire Philippines is published by Summit Media which is a company under the Gokongwei Group.