The Bank of the Philippine Islands (BPI) has secured final regulatory approvals to merge two of its thrift banking subsidiaries, a move that underscores the lender’s push to streamline operations, strengthen capital efficiency, and sharpen its digital banking strategy.
BPI, the banking unit of Ayala Group, said the Bangko Sentral ng Pilipinas approved the merger of BPI Direct BanKo Inc. and Legazpi Savings Bank Inc. through Monetary Board Resolution No. 604 dated July 2, while the Securities and Exchange Commission issued the Certificate of Filing of the Articles and Plan of Merger on July 24.
The merger will take effect on Oct. 1, with BanKo serving as the surviving entity.
The transaction, first approved by BPI’s board in December last year, consolidates two wholly owned subsidiaries into a single thrift bank with a stronger capital base and greater operational flexibility.
BPI said the merger is expected to improve capital deployment, support long-term sustainability, and reinforce the combined institution’s capital adequacy as it pursues growth in the mass-market and micro, small, and medium enterprise segments.
Beyond strengthening the balance sheet, the bank sees the integration generating meaningful cost savings by eliminating overlapping functions and creating a unified governance and risk management framework.
The combined entity is also expected to benefit from enhanced technology integration and digital capabilities, enabling faster service delivery and a more seamless customer experience.
The merger comes as Philippine banks continue to simplify organizational structures and accelerate digital transformation amid intensifying competition from digital banks and fintech firms. Consolidating subsidiaries has increasingly become a strategy for established lenders seeking to extract efficiencies while expanding their reach in underserved markets.
The integration is expected to optimize resources across the BPI group while strengthening BanKo’s ability to acquire and retain customers.
With regulatory hurdles now cleared, the country’s oldest bank is set to begin the final phase of integration, betting that a leaner organization and a stronger thrift banking platform will better position the BPI Group for its next phase of growth.
