Monetary Board approves merger of BPI’s BanKo, Legazpi Savings Bank

THE MONETARY BOARD has cleared the proposed merger between Bank of the Philippine Islands’ (BPI) thrift subsidiaries BPI Direct BanKo, Inc., A Savings Bank and Legazpi Savings Bank, Inc. (LSB), which could take effect by October.

BanKo, the surviving entity for the merger, said in an advisory on Wednesday that the Bangko Sentral ng Pilipinas’ (BSP) policymaking body approved the transaction in a resolution on July 2, based on a BSP letter dated July 7.

It said the merger will take effect on Oct. 1 subject to the approval of the Securities and Exchange Commission.

The boards of both BanKo and LSB ratified the merger plan on Jan. 22, and the two banks’ stockholders confirmed the same on May 4.

They also secured the clearance of the Philippine Competition Commission on May 18.

“Except for the transfer of deposits of the depositors from LSB to BanKo upon the effectivity of the merger, which will result in LSB deposits being assumed by BanKo as its deposit liabilities, subject to applicable terms and conditions for the same type of BanKo deposits in accordance with pertinent BSP rules and regulations, there shall be no change in the rights of depositors of the constituent banks in view of the merger,” BanKo added.

The merger plan was announced in December last year. BPI earlier said this would result in a stronger and more resilient capital structure for the combined entity, leading to a more efficient use of capital.

This would also improve operational efficiency, technological integration, and digital capabilities, and support long-term sustainability.

In 2015, BPI assumed full ownership of BanKo, which was previously called BPI Globe BanKo and jointly owned by BPI, Ayala Corp., and Globe Telecom, Inc.

Meanwhile, LSB was acquired by Robinsons Bank Corp. (RBC) in 2012. It became a BPI subsidiary when the merger between BPI and RBC took effect on Jan. 1, 2024.

As of March, BanKo was the seventh largest thrift bank in the country in terms of assets with P67.62 billion, the latest BSP data showed. It has 349 offices as of July 6.

It booked a net income of P2.76 billion in 2025, up from P2.33 billion in 2024, based on its audited financial statements posted on its website.

Meanwhile, LSB was the 11^th biggest thrift bank in the country with P22.74 billion in assets as of March. It has 28 regular branches and branch-lite units, based on BSP data.

Its net profit rose to P98.44 million in 2025 from P66.19 million in 2024. — Bettina V. Roc