BPI takes over BanKO
BANK of the Philippine Islands (BPI) is set to take full control of BPI Globe BanKO, Inc. (BanKO) by yearend after closing the transaction to buy the shares held by Globe Telecom, Inc. and Ayala Corp. in the joint venture.
The listed bank announced in August last year that it inked the agreement for the turnover with Globe and Ayala, and BPI will assume full ownership of the mobile- based bank, subject to requisite corporate and regulatory approvals.
“In reference to the announcement jointly disclosed by Globe, Ayala Corporation, and BPI last August 27, 2015 involving the full acquisition of BPI Globe BanKO, Inc., by BPI, please be informed that the transaction referred to in the said disclosure closed [ Sept. 20],” BPI and Globe said in separate disclosures to the Philippine Stock Exchange on Wednesday.
“All the conditions involving the said transaction have been completed and/or provided for by the parties,” it added.
BPI said in an earlier regulatory filing that it will increase its stake in BanKO by buying the shares of Globe and Ayala Corp. representing 40% and 20%, respectively. BPI owns 40% of BanKO.
BPI President and Chief Executive Officer Cezar P. Consing had said the move is an opportunity for the bank “to give access to funds and other banking services to clients who, otherwise, would not have been able to bridge their personal financial needs and jump-start their ventures...”
“Over the next few months, we will be in the process of transitioning BanKO within the BPI group and it is our goal to continue providing the highest level of service during this time,” Mr. Consing was quoted in the August filing with the stock exchange.
BanKO was established in 2009 as a partnership between BPI, Globe Telecom, and Ayala.
Despite the change in shareholder structure, BPI noted its commitment to inclusive growth, saying BanKO will continue to provide broader and more competitive access to funds and ensure critical financial services to the underbanked.
Globe President and CEO Ernest L. Cu, for his part, said the mobile phone company will continue to explore non-traditional avenues in microfinance by leveraging on its telecommunications infrastructure and mobile money platform, ... complementing the efforts of BPI and BanKO.”
Ayala CEO and Chairman Jaime Augusto Zobel de Ayala for his part added: “We believe that BPI’s assumption of full control and ownership of BanKO is an important step in the continued effort of the Ayala group to provide access to essential financial services to the unbanked segments of our population. BPI will now be properly positioned to pursue traditional microfinance lending within existing regulatory frameworks.
“With this transaction and Globe’s separate, but complementary, efforts to develop and provide innovative microfinance solutions, the Ayala group will continue to deliver extensive and innovative microfinance solutions to a broader segment of the Philippine population,” the official was quoted as saying.
BPI, the country’s third largest bank in asset terms, saw its net profit rise by 35.6% to P12.6 billion from last year’s comparable period income of P9.3 billion as all areas of its operations grew, allowing the bank to remain on track to hitting its growth targets this year.
BPI shares ended at P105 apiece yesterday, up from its previous finish of P104.10 each.