BPI to merge BanKo, Legazpi Savings Bank

December 19, 2025 | 12:00am

MANILA, Philippines — Ayala-led Bank of the Philippine Islands (BPI) has taken the first step toward consolidating two of its savings bank subsidiaries, a move it said would strengthen capital, improve efficiency and enhance customer service across the group.

In a disclosure to the local bourse, BPI said its board authorized management “to pursue plans to merge BPI Direct BanKo Inc., A Savings Bank and Legazpi Savings Bank Inc.

BanKo will be the surviving entity, subject to the approval of their respective boards of directors and stockholders.

The proposed merger brings together two BPI-owned institutions with the aim of building a more resilient combined entity. BPI said the consolidation “will result in a stronger and more resilient capital structure for the combined entity, leading to a more efficient use of capital.”

The listed bank added that the integration is expected to support “long-term sustainability, capital adequacy and operational flexibility,” while allowing the group to streamline operations and deploy resources more effectively.

Beyond capital strength, BPI said the merger is projected to deliver “meaningful improvements in operational efficiency and overall client experience” through several initiatives.

These include enhanced operational efficiency and material cost synergies, the establishment of a unified governance and risk-management framework as well as improved technological integration and digital capabilities.

According to BPI, these enhancements are expected to “elevate service quality across the merged organization’s client base,” while also helping optimize resource deployment and reinforce the group’s competitive position in key markets.

“The integration will therefore reinforce market presence and improve customer acquisition and retention for the merged bank,” the Ayala-led bank said.

BPI noted that the transaction remains subject to conditions precedent, including the securing of all required corporate and regulatory approvals, before the merger can be completed.

In 2022, BPI also completed the merger with its then largest thrift banking unit, BPI Family Savings Bank. This was followed by another consolidation after the bank sealed a deal with the Gokongwei group to acquire Robinsons Bank.

BPI posted a net income of P50.5 billion from January to September, up by 5.2 percent from P48 billion a year ago, as higher revenues offset increased expenses and loan-loss provisions.