The Monetary Board has approved the merger of Bank of the Philippine Islands’ thrift subsidiaries, BPI Direct BanKo, Inc., A Savings Bank and Legazpi Savings Bank, Inc., with the transaction slated to become effective on October 1, pending regulatory clearance.
BanKo will serve as the surviving entity. The approval follows a board resolution dated July 2 and a corresponding letter from the Bangko Sentral ng Pilipinas dated July 7. Final implementation requires endorsement from the Securities and Exchange Commission.
The boards of both BanKo and Legazpi Savings Bank ratified the merger plan on January 22, and their shareholders approved it on May 4. The Philippine Competition Commission granted its clearance on May 18, completing the required regulatory approvals.
Under the merger, deposits held by Legazpi Savings Bank will be transferred to BanKo and treated as BanKo’s deposit liabilities, subject to the same terms and conditions applicable to existing BanKo deposits. No other rights of depositors are expected to change.
The consolidation is intended to enhance the combined entity’s capital structure, improve operational efficiency, and integrate technology and digital capabilities, thereby supporting long‑term sustainability.
BPI assumed full ownership of BanKo in 2015, ending a joint venture that previously involved Ayala Corporation and Globe Telecom. Legazpi Savings Bank was acquired by Robinsons Bank Corp. in 2012 and became a BPI subsidiary following the merger of BPI and Robinsons Bank effective January 1, 2024.
BanKo ranks as the seventh‑largest thrift bank in the Philippines, reporting assets of P67.62 billion and operating 349 offices as of early July. Its audited financial statements show a net income of P2.76 billion for 2025, up from P2.33 billion in 2024.
Legazpi Savings Bank is the eleventh‑largest thrift bank, with assets of P22.74 billion and a network of 28 branches and branch‑lite units. The bank’s net profit increased to P98.44 million in 2025 from P66.19 million in the previous year.
