Ayala-led Bank of the Philippine Islands (BPI) will be absorbing its thrift bank subsidiary BPI Family Savings Bank (BFSB).

In a regulatory filing on Wednesday, January 20, BPI said the move is part of its efforts to “enhance the overall banking experience of customers.”

The banks aim to close the deal in 2021, subject to regulatory approval.

The merger comes at a time when the Bangko Sentral ng Pilipinas has eased monetary policy amid rising soured loans due to the pandemic-triggered recession. (READ: Cautious Philippine banks won’t lend despite Bangko Sentral easing)

“The reduction in the gap in regulatory reserve requirements between commercial banks and thrift banks was also a factor in the timing of the transaction,” BPI said.

BFSB is the country’s largest thrift bank with P287 billion in assets, P235 billion in deposits, and P227 billion in loans.

BFSB has around 3,000 employees.

Meanwhile, BPI’s total assets stood at over P2 trillion as of 2020, making it the 4th largest commercial bank in the country.

“As one BPI, our 8.5 million customers will be able to enjoy the full suite of the BPI group’s products, via all our digital and physical channels,” said outgoing BPI president and chief executive officer Cezar Consing, who is also the chairman of BFSB.

“Similarly, as one BPI, our employees will have the ability to work across a larger, more varied bank, while having continuity of tenure and job level.”

Jose Teodoro “TG” Limcaoco will replace Consing as BPI CEO effective April 22. Consing will remain as board director and executive committee member.

Shares of BPI closed lower by 1.5% on Wednesday at P83.20 apiece. – Rappler.com