BSP approves BPI-RBC merger

THE BANGKO SENTRAL ng Pilipinas (BSP) has approved the proposed merger between Bank of the Philippine Islands (BPI) and Robinsons Bank Corp. (RBC), which is expected to take effect next month.

“Please be advised that the Bangko Sentral ng Pilipinas, in its Monetary Board Resolution No. 1633 dated Dec. 14, approved the merger between Bank of the Philippine Islands and Robinsons Bank Corp., with BPI as the surviving bank subject to certain conditions. A copy of BSP’s letter of approval was received by BPI on Dec. 15,” the Ayala-led bank said in a disclosure to the local bourse on Monday.

Following the BSP’s green light, the transaction now only needs to be approved by the Securities and Exchange Commission (SEC) as it was already cleared by the Philippine Competition Commission in September

“The merger is expected to take effect on Jan. 1, 2024, subject to the approval of the SEC,” BPI said.

“Upon the effectivity of the merger, BPI will be able to unlock various synergies across several products and service platforms, expand the customer and deposit base of both banks through the merged entity, and, at the same time, by capitalizing on BPI’s expertise and network, enhance the overall banking experience of RBC customers. BPI will be able to expand its client base, accelerate growth, and ultimately increase shareholder value through partnerships with the Gokongwei Group,” the bank added.

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, the listed lender previously said.

Under the merger, BPI will also be taking over RBC’s 20% stake in digital lender GoTyme Bank, a joint venture between the Gokongwei Group and Tyme, which is one of the six entities granted an online banking license by the BSP.

BPI previously said it expects its net income to climb by 5-6% and its revenues to rise by around 7% once the merger with RBC takes effect.

The main advantage of RBC that was factored into the projected revenue growth is its customer base’s strong digital adoption, with over 35% of their retail clients enrolled in its online app, it said.

The merger is also expected to improve BPI’s industry ranking in terms of deposits to second place, with the Ayala-led bank seeing growth opportunities from RBC’s lending book, including in the housing, salary, motorcycle and teachers loan segments and its “unique” credit card portfolio.

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

Its shares climbed by 60 centavos or 0.59% to close at P102.20 apiece on Monday. — AMCS