BSP OK’s BPI capital stock hike

THE CENTRAL BANK has approved Bank of the Philippine Islands’ (BPI) plan to raise its authorized capital stock by P4 billion in preparation for its merger with Robinsons Bank Corp. (RBC) effective next month.

The Bangko Sentral ng Pilipinas (BSP) on Dec. 21 granted BPI the green light to increase its authorized capital stock to P54.6 billion from P50.6 billion previously, the listed Ayala-led lender said in a disclosure to the local bourse on Wednesday.

“The amendment to the Articles of Incorporation to increase its authorized capital is related to the proposed merger between Robinsons Bank Corp. and the Bank of the Philippine Islands, with BPI as the surviving bank,” BPI said.

The bank has also submitted its capital stock hike proposal to the Securities and Exchange Commission (SEC).

The central bank on Dec. 14, approved the merger between BPI and RBC, which is expected to take effect on Jan. 1, 2024. The transaction is still subject to the approval of the SEC.

The merger was approved by BPI’s board of directors in September 2022 and by its shareholders in January 2023.

Upon the transaction’s closing, RBC’s shareholders will hold approximately 6% of the resulting outstanding capital stock of BPI.

BPI will also be taking over RBC’s 20% stake in digital lender GoTyme Bank, one of the six entities granted an online banking license by the BSP.

BPI saw its attributable net income grow by 33.33% year on year in the third quarter to P13.47 billion amid higher revenues.

Shares in the Ayala-led bank went down by 60 centavos or 0.58% to close at P103.50 each on Wednesday. — K.B. Ta-asan