Merger of BPI, BPI Family Okd

MANILA, Philippines — Ayala-led Bank of the Philippine Islands (BPI) has obtained the approval of the Philippine Deposit Insurance Corp. (PDIC) to pursue its planned merger with thrift banking arm BPI Family Savings Bank (BFSB).

In a disclosure to the Philippine Stock Exchange (PSE), BPI said it received a letter from PDIC dated July 6, 2021 granting consent to the proposed merger of BPI and BFSB with BPI as the surviving entity.

“The PDIC’s consent shall be valid as long as the Monetary Board approval is in effect,” BPI said.

The approval  of the  Monetary Board was one of the conditions set by the PDIC.

The 169-year-old bank aims to submit regulatory filing with the BSP, PSE, Bureau of Internal Revenue (BIR) as well as the Securities and Exchange Commission (SEC) by end- September.

PDIC also mandated the submission of notarized certifications that the respective depositors and creditors of BPI and BFSB have been duly notified of the approved merger and the full implication of the merger on the deposit liabilities of both banks as well as the rights of the depositors within five days from the receipt of the BSP approval.

The state-run deposit insurer also wants both banks to issue notarized certifications that BPI and BFSB have sufficient liquid funds to cover possible withdrawals of depositors.

BPI president and chief executive officer Jose Teodoro “TG” Limcaoco earlier told The STAR the listed bank is aiming for a Jan. 1, 2022 effectivity date of the merger with BFSB.

The merger allows the BPI group to harmonize the products and services offering, deliver holistic solutions and elevate the customer experience of both banks. With the accelerated shift toward digitalization, the consolidation would enable rationalization of the BPI group’s branch network, streamlining of operations, increased manpower productivity and improved capital efficiency.

Furthermore, the BPI group expects to realize savings on operating expenses given the consolidation of branch locations and marketing support, reduction in tax leakages from intercompany services, and streamlining of compliance and reportorial requirements.

BPI is the country’s fourth largest universal bank in terms of assets with P1.95 trillion as of end-2020 and deposits with P1.47 trillion. It ranked third in terms of stockholders’ equity with P277.75 billion.

On the other hand, BPI Family Savings Bank is the country’s largest thrift bank with P286.3 billion in assets, P234.58 billion in deposits and P222.35 billion in loans as of end 2020.

ll be valid as long as the Monetary Board approval is in effect,” BPI said.

The approval  of the  Monetary Board was one of the conditions set by the PDIC.

The 169-year-old bank aims to submit regulatory filing with the BSP, PSE, Bureau of Internal Revenue (BIR) as well as the Securities and Exchange Commission (SEC) by end- September.

PDIC also mandated the submission of notarized certifications that the respective depositors and creditors of BPI and BFSB have been duly notified of the approved merger and the full implication of the merger on the deposit liabilities of both banks as well as the rights of the depositors within five days from the receipt of the BSP approval.

The state-run deposit insurer also wants both banks to issue notarized certifications that BPI and BFSB have sufficient liquid funds to cover possible withdrawals of depositors.

BPI president and chief executive officer Jose Teodoro “TG” Limcaoco earlier told The STAR the listed bank is aiming for a Jan. 1, 2022 effectivity date of the merger with BFSB.

The merger allows the BPI group to harmonize the products and services offering, deliver holistic solutions and elevate the customer experience of both banks. With the accelerated shift toward digitalization, the consolidation would enable rationalization of the BPI group’s branch network, streamlining of operations, increased manpower productivity and improved capital efficiency.

Furthermore, the BPI group expects to realize savings on operating expenses given the consolidation of branch locations and marketing support, reduction in tax leakages from intercompany services, and streamlining of compliance and reportorial requirements.

BPI is the country’s fourth largest universal bank in terms of assets with P1.95 trillion as of end-2020 and deposits with P1.47 trillion. It ranked third in terms of stockholders’ equity with P277.75 billion.

On the other hand, BPI Family Savings Bank is the country’s largest thrift bank with P286.3 billion in assets, P234.58 billion in deposits and P222.35 billion in loans as of end 2020.