BPI plans to merge thrift units BanKo, Legazpi Savings Bank

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BANK of the Philippine Islands (BPI) is set to merge its thrift bank subsidiaries BPI Direct BanKo, Inc., A Savings Bank (BanKo) and Legazpi Savings Bank, Inc. (LSB), it said on Thursday.

BPI’s board, in a Dec. 17 meeting, authorized its management to pursue the merger plan that is still subject to the approval of the two banks’ boards and stockholders, as well as regulatory approvals, it said in a disclosure to the stock exchange.

BanKo will be the surviving entity once the merger takes effect.

“A merger between the two BPI subsidiaries will result in a stronger and more resilient capital structure for the combined entity, leading to a more efficient use of capital. Consolidating the two institutions is expected to support long-term sustainability, capital adequacy, and operational flexibility,” the listed bank said.

“Further, the merger is projected to deliver meaningful improvements in operational efficiency and overall client experience through: enhanced operational efficiency and material cost synergies; a unified governance and risk-management framework; and improved technological integration and digital capabilities.”

BPI said these will help improve service delivery and quality for the client base of both banks.

“It is likewise expected to optimize resource deployment and strengthen BPI Group’s competitive position in key markets. The integration will therefore reinforce market presence and improve customer acquisition and retention for the merged bank.”

In 2015, BPI assumed full ownership of BanKo, which was previously called BPI Globe BanKo and jointly owned by BPI, Ayala Corp., and Globe Telecom, Inc.

Meanwhile, LSB was acquired by Robinsons Bank Corp. (RBC) in 2012. It became a BPI subsidiary when the merger between BPI and RBC took effect on Jan. 1, 2024.

As of June 2025, BanKo was the seventh largest thrift bank in the country in terms of assets with P56.88 billion, latest data from the Bangko Sentral ng Pilipinas (BSP) showed. It has 349 offices as of Dec. 16.

It booked a net income of P2.33 billion in 2024, up from P1.29 billion in 2023, based on its audited financial statements posted on its website.

Meanwhile, LSB was the 12th biggest thrift bank in the country with P15.11 billion in assets in the same period. It has 28 offices, based on BSP data.

Its net profit rose to P66.19 million in 2024 from P63.204 million in 2023.

BPI’s attributable net income went up to P17.53 billion in the third quarter from P17.42 billion in the same period last year.

This brought its nine-month profit to P50.48 billion, rising from P47.99 billion a year ago.

BPI shares went down by P1.30 or 1.08% to close at P118.70 apiece on Thursday. — Bettina V. Roc