The Gokongwei Group’s Robinsons Bank is set to merge with the Ayala Group’s Bank of the Philippine Islands. This follows the approval of Robinsons Bank’s board of directors on September 30, 2022, to execute the agreement between BPI and Robinsons Bank’s owners, namely Robinsons Retail Holdings, Inc. (RRHI) and JG Summit Capital Services Corp., a wholly owned subsidiary of JG Summit Holdings.
According to Robinsons Bank President Boyie Sarte, the development will allow the bank to “leverage on the ecosystems of two of the largest conglomerates in the country. We are confident that combining Robinsons Bank’s product innovations and its success in the rapidly growing niche markets with BPI’s scale of operations and formidable reputation can only benefit our customers with better and expanded service.”
In his talk with Robinsons Bank employees following the merger announcement, JG Summit President and CEO Lance Y. Gokongwei said that the move is “the best direction to take to provide us with better scale and access to a larger customer base. This strategic move will unlock various synergies across several product and service platforms and expand the customer and deposit base of both banks through the merged entity.”
Gokongwei added that the merger will enhance the overall banking experience of Robinsons Bank customers as it will provide customers with better choices “through a wider range of best-in-class and innovative products from the combined product portfolios of Robinsons Bank and BPI,” thus aligning with the Gokongwei Group’s Purpose as an organization.
For her part, RRHI President and CEO Robina Gokongwei-Pe said, “Retailing has always had a close relationship with banking in many markets around the world, and especially here in the Philippines. This is because of the breadth of services it offers to its customers, coupled with its broad and rich eco-system of suppliers and business partners, that need banking services to grow and thrive. This is what we believe this merger between BPI and Robinsons Bank will bring — the coming together of the innovativeness of Robinsons Bank, the scale and breadth of BPI, and the retail and commercial eco-system of both the Gokongwei Group and the Ayala Group.”
Currently, Robinsons Bank’s products and services cater to corporate and retail clients through its 190 branches/branch-lite units, 393 ATMs, and online and mobile banking channels, which will augment BPI’s network of 1,181 branches and 2,398 ATMs/CAMs.
According to Bangko Sentral data from June 30, 2022, Robinsons Bank’s total assets amounted to Php 172.3 billion, while BPI had an asset base of Php 2.45 trillion. When combined, the two banks would create the country's second-biggest private lender, behind BDO. The government-owned Landbank is currently the country’s second-largest bank, with assets of Php 2.8 trillion.
Upon the effectivity of the merger, which is expected to be completed by late 2023 after the necessary corporate and regulatory approvals are secured, including those from the Philippine Competition Commission, the Bangko Sentral ng Pilipinas, the Philippine Deposit Insurance Corporation, and the Securities and Exchange Commission, Robinsons Bank’s shareholders will collectively hold approximately 6% of the resulting outstanding capital stock of BPI.
In the meantime, Gokongwei promised employees that Robinsons Bank would continue its normal business operations and urged them to “keep the signature RBanker traits of customer-centricity, agility, malasakit – and our heart for service – alive. Our authentic RBank culture is what sets our bank apart.”
For more information on Robinsons Bank, visit robinsonsbank.com.ph
