Bank of the Philippine Islands

BANK OF THE PHILIPPINE ISLANDS rim of the Philippine Islands ( bpi) is that countrys second-largest bank, trailing only Metropolitan Bank Trust. It is also the Philippines oldest bank and one of the oldest of all Asian banks. bits per inch offers a full range of commercial and retail financial services, including corporate finance services, asset management, and brokerage firm and other financial consulting services. bpis retail ne cardinalrk includes more than 700 branches throughout the Philippines, as well as branches in New York, Hong Kong, and Tokyo. The bank also operates a network of more than 1,200 automated teller machines and more than 8,500 retailer-based point-of-sale machines. In 1999, bpi pioneered online banking in the Philippines with the launch of online bank BPI Direct in 1999.In addition to its banking products and services, BPI has also developed a strong non-life insurance operation, chiefly under subsidiary BPI/MS indemnity Corporation. Listed on the Phili ppines Stock Exchange, BPI has long been majority controlled by Philippines conglomerate Ayala Corporation. * leader in electronic banking, having introduced most of the firsts in the industry, such as * automated teller machines (ATMs), * a point-of-sale debit entry system * kiosk banking * phone banking internet banking * mobile banking * owned by the Ayala Corporation Business maturation * post World War II era, BPI evolved from a purely commercial bank to a fully diversified universal bank * accomplished mainly through nuclear fusions and acquisitions in the eighties when it engrossed an investment house, a stockbrokerage company, a leasing company, a savings bank, and a retail finance company * Since the belatedly 1990s consummated three bank mergers * 1996 merged with City Trust Banking Corporation 2000 * consummated the biggest merger then in the banking industry when it merged with the ca-caer Far East Bank Trust caller-out (FEBTC) * formalized its acquisition of t hree major insurance companies in the life, non-life and reinsurance fields * 2005 acquired and merged with Prudential Bank mergerS April 2007 Bank of the Philippine Islands (Europe) Plc * October 2008 BPI, Ayala Corporation and Globe Telecom gestural a Memorandum of Agreement to form the countrys first mobile microfinance bank * 2009 entered into a strategic bancassurance partnership with The Philippine American Life Insurance Company (Philamlife) to form BPI-Philam Life Assurance Corp Principal Subsidiaries * BPI Family savings Bank, Inc. * BPI Capital Corporation * BPI Leasing Corporation * BPI Direct Savings Bank * BPI International Finance Limited, Hong Kong BPI Express Remittance Corporation * Bank of the Philippine Island (Europe) Plc, * Ayala Plans, Inc. * BPI/MS1 Insurance Corporation Reasons Of merger * Jaime Augusto Zobel de Ayala, BPIs Chairman, said the purchase would further enhance the operations of BPI with increased or widened network. * New incentive package b y BSP with respect to mergers and acquisitions * BPI has been on the lookout station for some good acquisitions in order to bolster its position as a rising regional financial powerhouse. The merger is seen to offer a good strategic fit to BPI in groovy the attractive customer segment of Prudential composed mostly of middle market entrepreneurs. * With the merger, BPI leave solidify its position as the countrys second largest bank with combine assets totaling P456. 09 jillion. * BPI expects to further at least 200,000 new accounts with the acquisition. BPI and FAR EAST BANK TRUST COMPANY MERGER The majority stockholders of the Bank of Philippine Islands (BPI) and Far East Bank and Trust Co. FEBTC) approved the merger of the two banks, making the combined entity the 10th largest financial institution in the region with over $3. 5 billion in capital. The merger catapulted BPI/FEBTC as the countrys largest bank, accounting for 14 portion of the entire banking industrys total re sources with combinedassets of P372. 4 billion. The merged institution will also have the largest branch network of 680. BPI prexy Xavier Loinaz, in an interview, said they expect the integration of the two banks to be firmed up by the end of meet this year. We think that by end of March this year, they (merger process) would be falling into place, Loinaz said, when asked rough the merger timetable. FEBTC president Octavio Espiritu aw are FEBTC employees that they will work out ways to thresh out remaining issues regarding the merger particularly the attainable massive displacement of FEBTC personnel. While they are finalizing the integration, both Loinaz and Espiritu said the performance of their respective banks in 1999 was comparatively flat. We havent seen any growth for the year, pretty much the same level as last year.Loans are flat for 1999, Loinaz said, adding that BPIs bottomline was also flat. The same thing with FEBTC, Espiritu said the banks income was down due to l oans provisioning amounting to about P2 billion for the year. This year, Loinaz said they are still waiting for the economy to turn around. Last year was quite disappointing. We showed a slight drop in (bottomline) the previous year, he added. Loinaz said they do not expect similarly much from the first year of merger of BPI and FEBTC.But, he informed the stockholder that for 2000, the pro-forma projected hire per share for the merged bank would be 5. 37 percent, 6. 31 percent in 2001 and 6. 79 percent in 2001. Based on BPIs closing price on Oct. 20, 1999, the day that the merger agreement was signed and announced, the exchange ratio represented an implied value of P82. 50 per FEBTC share or an implied premium of 18 percent to FEBTCs closing price on that day. According to Loinaz, they look forward to working with DBS Bank which now owns about 20 percent of the merged bank. DBS Bank is the second largest bank in the region.