Ayala consolidates banking assets

MANILA, Philippines - Conglomerate Ayala Corp. is consolidating its banking assets as Bank of the Philippine Islands (BPI) takes full control of the country’s first mobile phone-based, microfinance savings bank.

Jaime Augusto Zobel de Ayala, chairman and chief executive officer of Ayala Corp., said the assumption of full ownership of BPI Globe BanKo by BPI is an important step in the continued effort of the 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,” he said.

Ayala Corp. and Globe Telecom Inc. are selling their combined 60 percent stake in BPI Globe BanKo to BPI.

BPI Globe BanKo was established in 2009 to leverage on the conglomerate’s banking and telecommunications assets to promote financial inclusion for the country’s unbanked. Globe used to own 40 percent of BPI Globe BanKo while Ayala Corp. has a 20 percent stake.

Value of the transaction has yet to be determined pending the issuance of a fairness opinion on the share valuation.

Despite the sale, Ayala Corp. would continue to pursue its commitment to inclusive growth through both BPI and Globe’s traditional and non-traditional ventures in the microfinance space.

With the transfer of ownership, BPI Globe BanKo would be better placed to perform its microfinance activities within existing regulations.

BPI is expected to assume full ownership of mobile phone-based savings bank by year end as it awaits the completion of regulatory and business requirements.

BPI president and chief executive officer Cezar Consing said the acquisition underscores the bank’s commitment to inclusive growth.

“We take this opportunity to thank our partners for giving us yet another opportunity 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 jumpstart their ventures,” Consing said.

Over the next few months, BPI Globe BanKo would be folded into the BPI group.

Aside from banking, the Ayala Group also has interests in electronics, automotive, business process outsourcing, education, healthcare, and power generation and transport infrastructure.

As of end March, BPI is the country’s third largest bank in terms of assets with P1.17 trillion. It also ranked third in terms of total deposits with P948.31 billion and also third in loans in terms of total loans with P595.5 billion.

On the other hand, BPI Globe BanKo ranked 38th in terms of assets with P1.1 billion in end March. It ranked 34th in terms of deposits with P732.61 million and 48th in terms of loans with P168.53 million.