BY ATTY. IGNACIO R. BUNYE
During a special joint meeting last week, the boards of the Bank of the Philippine Islands (BPI) and BPI Family Savings Bank (BFSB) unanimously agreed to set into motion the strategic union of the two banks. The merger, with BPI as the surviving entity, will take effect upon its approval by regulators as well as shareholders.
Immediately after the meeting, BPI President Cezar “Bong” P. Consing, concurrent chairman of BFSB, announced: “We are thrilled to share, that after significant study, with the best interest of our clients in mind, BPI will begin the process of operationally merging with BPI Family Savings Bank (BFSB) – to form One BPI.
“This merger has the best interest of our customers and employees in mind. Our shareholders will also benefit. This merger is timed to provide us with the platform to help lead the economic recovery that is sure to come.”
In a separate letter to BPI’s 8.5 million customers, Consing explained that “(t)his move will enable you to transact in more branches nationwide and conveniently access the suite of solutions offered by BPI Family Savings Bank – from auto loans and housing loans, to higher yielding deposit products.”
Consing added: “With this merger, we are confident that we will be able to deliver on our promise of continuing to give you the best banking solutions and service. We are committed to making us ready for tomorrow, today.”
Consing, meanwhile, assured BFSB’s 3,000 employees of “an opportunity to work across a larger, more varied bank, while having continuity of tenure and job level.”
On July 1, 1985, the then Central Bank of the Philippines authorized BPI Family Savings Bank to operate as a thrift bank following the merger between BPI and Famiy Bank and Trust Co. At that time, it was considered the largest merger in Philippine banking history.
BFSB offered a strong retail network and an extensive online system that reinforced BPI’s pioneering efforts in ATM. BFSB had a large footprint in consumer finance, with the absorption of Family Bank’s Filinvest Credit Corpo., then the largest and most profitable consumer finance company. BFSB has since become the largest thrift bank in the country with P287 billion in assets, P235 billion in deposits, and P227 billion in loans.