Ayalas get shareholders OK to fold in Gokongwei-led Robinsons Bank into BPI

Bank of the Philippine Islands (BPI) announced that its shareholders approved the proposed merger with Robinsons Bank Corporation (RBC), with the Ayala family’s banking arm as the surviving entity.

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“The proposed merger with Robinsons Bank will unlock various synergies across several products and service platforms and expand the customer and deposit base of both banks,” BPI president and CEO Jose Teodoro K. Limcaoco said during the special stockholders meeting on Tuesday.

With RBC’s consumer loans posting a 30 percent compounded annual growth rate (CAGR) over the past five years, the bank’s consumer loans account for 42 percent of its loan mix, while BPI’s comprise 20 percent.

As the relatively high mix of consumer loans has been a key driver for net income growth, BPI said it is aligned with its goal of increasing its consumer loans to 30 percent of its total loan book.

“Apart from growing BPI’s client and deposit base, and expanding synergies, the merger will increase shareholder value by providing BPI opportunities to collaborate across the Gokongwei Group’s ecosystem, which includes market leading businesses in food manufacturing, air transportation, real estate and property development, and multi-format retail companies,” Limcaoco said.

He said the merger would also expand BPI’s access to the Gokongwei network, especially to the Filipino-Chinese market segment, which has been the significant advantage of their closest competitors.

During the same meeting, shareholders also approved an increase in its authorized capital by P4 billion to cover the required number of common shares to be issued to RBC stockholders.

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