BPI merging micro lenders Banko, LSB

Ayala-led Bank of the Philippine Islands (BPI) continues to consolidate its businesses, this time with the planned merger of BPI Direct BanKo Inc., A Savings Bank (BanKo) and Legazpi Savings Bank Inc. (LSB), with BanKo as the surviving entity.

- By JAMES A. LOYOLA

In a disclosure to the Philippine Stock Exchange (PSE), BPI said its board of directors has authorized management to pursue the merger plans, subject to the consideration and approval of the respective boards of directors and stockholders of the two subsidiaries.

“A merger between the two BPI subsidiaries will result in a stronger and more resilient capital structure for the combined entity, leading to a more efficient use of capital,” the bank said.

It added that, “Consolidating the two institutions is expected to support long-term sustainability, capital adequacy, and operational flexibility.