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.

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.

“Further, the merger is projected to deliver meaningful improvements in operational efficiency and overall client experience through enhanced operational efficiency and material cost synergies; a unified governance and risk-management framework; and improved technological integration and digital capabilities.”

These enhancements are expected to elevate service quality across the merged organization’s client base. The merger is likewise expected to optimize resource deployment and strengthen the BPI Group’s competitive position in key markets.

“The integration will therefore reinforce market presence and improve customer acquisition and retention for the merged bank,” BPI said.

BPI recently absorbed Robinsons Bank through a merger that took effect last year after acquiring the lender from the Gokongwei Group through a share swap.

Established in 1976, LSB has a long history of serving local communities with personalized financial solutions, with a focus on teacher loans. It was acquired by Robinsons Bank in 2012.

LSB officially became part of the BPI Group on Jan. 1, 2024, following the merger between BPI and Robinsons Bank.

In 2022, BPI merged with BPI Family Savings Bank to offer a full suite of services under one roof.

BPI Direct BanKo, BPI’s microfinance arm, evolved from earlier entities, with roots tracing back to Globe BanKo in 2010 and the merger of BPI Direct Savings Bank, established in 1986, with Globe BanKo in 2016. It later became known as BPI Direct BanKo, serving micro-entrepreneurs through accessible loans and digital banking services.