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April 12, 2024

BPI sees higher 2024 profit post RBC merger

Bank of the Philippine Islands (BPI) is optimistic about its financial outlook for 2024 following the merger with Robinsons Bank Corp. (RBC).

BPI president and CEO Jose Teodoro K. Limcaoco expressed confidence during a recent gathering for the banking community that 2024 would see improved earnings compared to 2023.

Limcaoco said the integration of RBC into BPI’s systems would take about two years. This process involves tasks like updating logos and transitioning RBC accountholders to BPI systems.

While acknowledging potential integration expenses, Limcaoco highlighted the expected positive impact of RBC on BPI’s earnings to offset integration costs.

Despite potential expenses, Limcaoco noted the profitability of Robinsons Bank as a standalone entity, suggesting that the benefits from the merger outweigh associated costs.

BPI looks forward to tapping into RBC’s products and clientele, as well as leveraging resources from the Gokongwei group.

BPI earlier projected a 5% to 6% increase in net income and around 7% growth in revenues post-merger. The bank reported a 33.33% year-on-year growth in attributable net income in the third quarter of 2023 to P13.47 billion. However, the results for the fourth-quarter and full-year income remain to be released.

The merger became official on Jan. 1, 2024, with BPI emerging as the surviving entity. Following the transaction, BPI acquired RBC’s 20% stake in digital lender GoTyme Bank, a joint venture between the Gokongwei Group and Tyme.

The digital lender holds an online banking license granted by the BSP. RBC’s shareholders now hold around 6% of the resulting outstanding capital stock of BPI.