MANILA, Philippines - The Securities and Exchange Commission (SEC) has approved the consolidation of the banking assets of conglomerate Ayala Corp. after Bank of the Philippine Islands (BPI) assumed full ownership of the country’s first mobile phone-based microfinance savings bank last year.
Bangko Sentral ng Pilipinas (BSP) Deputy Governor Nestor Espenilla Jr. issued Circular Letter 2017-009 on the merger between BPI Direct Savings Bank Inc. (BPIDS) and BPI Globe BanKO Inc., A Savings Bank.
Espenilla said the SEC approved the Articles and Plan of Merger between BPIDS and BPIGL. Under the merger, BPIDS would absorb the entire assets and liabilities of BPIGL.
He said the corporate regulator also approved the change in the corporate name of BPIDS to BPI Direct BanKO Inc., A Savings Bank.
Last September, BPI took full control of BPIGL after both Ayala Corp. and Globe Telecom Inc. sold their combined 60 percent interest to the country’s third largest bank.
Ayala, Globe, and BPI signed a memorandum of agreement in October 2008 to form a joint venture that would allow rural and low-income customers’ access to financial products and services.
The BSP approved in October 2009 the sale and transfer by BPI of its shares of stock in Pilipinas Savings Bank Inc. (PSBI) to formalize the creation of the venture. Globe’s and BPI’s ownership stakes in PSBI were at 40 percent each while Ayala’s shareholding was at 20 percent.
The stakeholders then renamed PSBI into BPIGL to become the country’s first mobile microfinance bank. It opened its first branch in Metro Manila in the first quarter of 2011. It now has six branches nationwide, over 2,000 partner outlets, 261,000 customers, and over P2.4 billion in its wholesale loan portfolio.
The assumption of full ownership by BPI is an important step in the continued effort of the Ayala Group to provide access to essential financial services to the unbanked segments of our population.
The Ayala Group remains committed to inclusive growth through both BPI and Globe’s traditional and non-traditional ventures in the microfinance space.
BPI is the country’s fourth largest bank in terms of assets with P1.31 trillion as of end September last year.