BPI, Robinsons Bank confirm merger agreement

THE Board of Directors of JG Summit Capital Services Corp., a wholly owned subsidiary of JG Summit Holdings Inc., approved during its Friday meeting on Sept. 30, 2022 the execution of an agreement between the Bank of the Philippine Islands (BPI) and JG Capital and Robinsons Retail Holdings Inc. for the merger of BPI and Robinsons Bank Corp. (RBC) with BPI emerging as the surviving entity subject to shareholders and regulatory approvals.

RBC shareholders will collectively hold approximately six percent of the resulting outstanding capital stock of BPI.

“The merger, which the parties hope to complete before the end of 2023, will 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 company told the local bourse.

RBC’s products and services cater to its 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 automated teller machines, and online and mobile banking channels.

As of June 30 2022, RBC had 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,” said JG Summit president and chief executive officer (CEO) Lance Gokongwei.

“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 on ecosystems of both the Gokongwei and Ayala Groups. The merger will also open more opportunities for our talented employees given that BPI will continue to grow, evolve and adapt to the rapidly changing market environment.”

BPI president and CEO Jose Teodoro Limcaoco told the local bourse Friday that “they 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,” he said.