BanKo, Legazpi Savings Bank merger gets BSP nod

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has given Ayala-led Bank of the Philippine Islands (BPI) the green light to merge its thrift banking arms.

BPI Direct BanKo Inc. and Legazpi Savings Bank Inc. have secured key regulatory approvals for their planned merger, with BanKo set to become the surviving bank.

In a notice on BanKo’s website, the two banks said the Monetary Board approved the merger through a resolution dated July 2, as reflected in a July 7 letter from the BSP.

The boards of both BanKo and Legazpi Savings Bank ratified the merger on Jan. 22, while their respective stockholders ratified and confirmed the transaction on May 4.

The Philippine Competition Commission also cleared the merger on May 18, signaling that the deal had passed the country’s antitrust review process.

The transaction, however, has yet to take effect as it remains subject to the approval of the Securities and Exchange Commission.

“Merger effective on Oct. 1, 2026, subject to SEC approval,” the banks said.

Based on data from the BSP, BanKo is the country’s seventh largest thrift bank in terms of assets with P67.62 billion, while Legazpi Savings Bank is ranked 11th with P22.74 billion.

Under the plan, BanKo will absorb Legazpi Savings Bank once the merger becomes effective. Deposits of Legazpi Savings Bank clients will be transferred to BanKo and treated as deposit liabilities of the surviving bank.

The banks said the transfer would be subject to the applicable terms and conditions for the same type of BanKo deposits, in accordance with BSP rules and regulations.

The banks also said that the consent of the Philippine Deposit Insurance Corp. is no longer required for bank mergers, consolidations and acquisitions under Republic Act 11840, which amended certain provisions of the PDIC Charter.

The announcement was issued to inform creditors and depositors of both banks of the planned merger and the treatment of deposit accounts once the transaction is completed.

The consolidation comes as banks continue to streamline operations, strengthen balance sheets and improve efficiency amid a more competitive financial services landscape.