Bank of the Philippine Islands said Thursday it was merging with its thrift subsidiary, BPI Family Savings Bank, allowing the Ayala Group to consolidate its banking business.
Why does it matter? Customers of BPI and BPI Family Savings will have access to each other's products, both digital and physical, BPI told the stock exchange.
The much larger BPI will be the surviving entity. What makes BPI Family Savings Bank different? Thrift banks, have smaller loan portfolios compared to commercial banks.
Employees of the merged identity will be able to work across a larger, more varied bank, and potential synergies will create shareholder value, BPI said in the disclosure.
Shares of BPI were up 0.72% in early trading Thursday after the merger was announced. The main index was down 0.06%.
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The Board of Directors at BPI approved the merger on Wednesday. It will still be subject to the approval of at least two-thirds of shareholders in BPI's annual shareholders' meeting on April 22.
Upon shareholders' approval, it will be submitted to the Bangko Sentral ng Pilipinas, the Securities and Exchange Commission, and other regulatory agencies.
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