BPI, Robinsons Bank merger complete by next year

Lawrence Agcaoili – The Filipino Star

October 2, 2022 | 00:00

MANILA, Philippines – Bank of the Philippine Islands (BPI) led by Ayala and Robinsons Bank Corp. (RBC) of the Gokongwei family aim to complete their consolidation before the end of 2023 in order to unlock various synergies between several products and service platforms as well as expand the customer base and deposit base of the merged entity.

BPI Chairman and CEO Jose Teodoro “TG” Limcaoco said the 171-year-old bank was excited about the transaction as it believes the merger illustrates BPI’s strategic effort to expand its customers and accelerate its growth.

In a statement, Limcaoco said the merger would ultimately increase shareholder value through partnerships with the Gokongwei Group.

“We plan to make a smooth transition and integration of RBC and its clients into BPI. Together, we aim to maintain quality banking services and to offer other innovative and best-in-class products to our extended customer base. We are also keen to further strengthen our ties with the Gokongwei Group through various collaboration opportunities within the vast ecosystem of the Gokongwei Group,” Limcaoco said.

For his part, President and CEO of JG Summit Holdings Inc., Lance Gokongwei, said the Gokongwei Group has built and supported RBC’s growth from a small savings bank to become one of the world’s largest banks. fastest growing full-service businesses in the country.

After reviewing the bank’s strategic options, Gokongwei, who is also chairman of RBC, believes the bank is in a game of scale and will continue to need additional capital for growth.

“We believe that the merger of Robinsons Bank with BPI, which is one of the strongest and most profitable banks in the country, is the best way forward. This will give our customers access to a more comprehensive range of banking products and services, as the combined organization will rely on the ecosystems of the Gokongwei and Ayala Groups,” said Gokongwei.

Gokongwei, who spoke with RBC employees, said the merger would also open up more opportunities for its talented employees, as BPI would continue to grow, evolve and adapt to the business environment. rapidly changing market.

The respective boards of directors of BPI, RBC, Robinsons Retail Holdings Inc. and JG Summit Capital Services Corp. approved the signing of an agreement at their respective meetings yesterday.

Robinsons Retail President and CEO Robina Gokongwei-Pe said retail has always had a close relationship with the bank in many markets around the world, and especially here in the Philippines.

“This is because of the breadth of services it offers to its customers, coupled with its large and rich ecosystem of vendors and business partners, who need banking services to grow and thrive. This is what we believe this merger between BPI and Robinsons Bank will bring – bringing together the innovation of Robinsons Bank, the scale and scope of BPI, and the retail and commercial ecosystem of the Gokongwei Group and the Ayala group,” Gokongwei-Pe said.

The Ayala-led bank would become the surviving entity, subject to shareholder and regulatory approvals.

Upon the effectiveness of the merger after receipt of all necessary corporate and regulatory approvals, including approvals from the Philippine Competition Commission, Bangko Sentral ng Pilipinas (BSP), Philippine Deposit Insurance Corp. and the Securities and Exchange Commission, RBC shareholders collectively own approximately 6% of the outstanding resulting share capital of BPI.

By capitalizing on BPI’s expertise and network, the merger would lead to an improved overall banking experience for RBC clients. RBC’s products and services are directed to its business, commercial and retail clients through its 189 branches and light branch units, 354 ATMs, and online and mobile banking channels.

At the end of June, RBC had total assets of 175.9 billion pesos, including net loans and receivables of 102.4 billion pesos, and total liabilities of 156 billion pesos, including deposits of 139 billion pesos. pesos.

BSP data showed that BPI is the third largest private bank in the country in terms of assets with 2.35 trillion pesos and the second largest in terms of capital with 297.37 billion pesos at the end of March.

With the merger, BPI and RBC would become the second-largest bank by assets with a combined asset base of 2.52 trillion pesos, overtaking Metropolitan Bank & Trust Co., headed by Ty, with 2.38 trillion. of pesos at the end of March.

For his part, RBC President and CEO Elfren Antonio Sarte said the merger would allow the merged entity to leverage the ecosystems of two of the country’s largest conglomerates.

“We are confident that combining RBank’s product innovations and success in rapidly growing niche markets with BPI’s scale of operations and formidable reputation can only benefit our customers with better and expanded service. . We will be working closely with BPI in the coming months to ensure a smooth integration of the two organizations and ensure that our customers can make the transition seamlessly,” said Sarte.

About Miley Sawngett

Check Also

MBS’ Credit Suisse stake isn’t just another Gulf Bank bailout

Comment this story Comment As Credit Suisse Group AG is revamped, the Saudis have stepped …