The Ayala-owned Bank of the Philippine Islands (BPI) and the Gokongwei-owned Robinsons Bank Corp. (RBank) will consolidate their assets in a merger planned to be completed before the end of 2023.
When the transaction is completed, BPI will emerge as the surviving entity and RBank shareholders will collectively hold around 6% of BPI’s outstanding capital stock.
The merger is expected 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,” the two companies said in separate disclosures on Friday, Sept. 30, 2022.
The merger was approved also on Friday by the board of directors of BPI, RBank, Robinsons Retail Holdings, Inc., and JG Summit Capital Services Corp.
Regulatory approvals will be sought from the Philippine Competition Commission, Bangko Sentral ng Pilipinas, Philippine Deposit Insurance Corporation, and Securities and Exchange Commission.
RBank provides products and services to corporate, commercial, and retail clients through its 189 branches and branch-lite units (including 14 branches and 14 branch-lite units of its subsidiary, Legazpi Savings Bank), 354 ATMs, and online and mobile banking channels.
As of June 30, 2022, RBC has total assets of P175.9 billion, including net loans and receivables of P102.4 billion, and total liabilities of P156 billion, including deposits of P139 billion.
“Through the years, the Gokongwei Group has built and supported the growth of Robinsons Bank from a small savings bank to become one of the fastest- growing, full-service commercial banks in the country today. However, we reviewed our strategic options to determine its future and we are cognizant that banking is a scale game and will continue to require additional capital for growth,” Lance Y. Gokongwei, JG Summit president and CEO, said in a statement.
“We believe that merging Robinsons Bank with BPI, which is one of the strongest and most profitable banks in the country, is the best path forward. This will give our customers access to a fuller range of banking products and services as the combined organization will leverage the ecosystems of both the Gokongwei and Ayala Groups,” he added.
BPI, the oldest bank in the Philippines and one of the top three in terms of assets, has 869 branches, including five express banking centers, across the country as of end-2021. It also has a branch in Hong Kong and two branches in London. It has 2,117 ATMs and 340 cash accept machines.
“We plan to effect a smooth transition and integration of RBC and its customers into BPI. Together, we aim to maintain quality banking services and offer additional best-in-class and innovative products to our expanded client base. We are also keen on strengthening our ties with the Gokongwei Group even more through various collaboration opportunities across the Gokongwei Group’s vast ecosystem,” BPI president and CEO Jose Teodoro Limcaoco said in a separate statement. (MTVI/Ventures Cebu)