BPI to put up Singapore subsidiary

The Bank of the Philippine Islands (BPI) wealth management unit is establishing a Singapore subsidiary catering to Filipinos who wish to invest in opportunities overseas.

According to BPI Wealth President and Chief Executive Officer Maria Theresa Marcial, the new subsidiary will be established by the first quarter of 2024, with the firm targeting to hit P3 trillion in assets under management (AUM) by 2026.

“We have a subsidiary in Hong Kong that allows us to access offshore investment opportunities, and soon we will launch a subsidiary in Singapore,” she said in a briefing for BPI’s 127th anniversary in Makati City.

The company, through BPI International Finance Limited, is authorized by the Hong Kong Monetary Authority as a deposit-taking company. It is also registered with the Securities and Futures Commission to undertake dealings in securities and advising in securities and asset management.

Previously BPI Asset Management and Trust Corp., the firm was rebranded to BPI Wealth earlier this year as it seeks to connect with various client segments and boost its status as a leader in the asset and wealth management space.

“We call it beyond banking. Traditional private banking was viewed, at least in the Philippines, as just banking and investment services,” she said, noting that the firm offers solutions for banking and investing, along with other services.

Among the services Marcial cited are solutions to address the needs of high-net-worth individuals from investing, administrative tasks, assistance in large asset acquisitions, and property management such as tax payments.

BPI Wealth’s parent firm BPI was ranked the country’s third largest bank, with P2.662-trillion assets under management as of March 31, 2023.

Merger

Ayala-led BPI will merge with Gokongwei-led Robinsons Bank Corp., with the deal now awaiting regulatory approval, which is expected by the fourth quarter at the latest, and the merger taking place on January 1, 2024.

“We hope that the approvals will come and the agreement with the Gokongwei group is that the merger takes place at the first business day of the quarter following when we get the approval,” BPI president and chief executive officer Jose Teodoro “TG” Limcaoco said in the same briefing.

The merger plans were announced in September 2022, and secured the approval of shareholders in January this year.

“As to the branches, we continue to work as to which branches will remain — which BPI branches might close, which BPI branches will remain open, which Robinsons branches will close, and which ones will remain open,” Limcaoco said.

“We are taking it as a fresh look with fresh eyes. We’re not saying that everyone will close, we’re not saying that everyone will stay open. We are looking at the Robinsons-BPI network as one, and seeing how we rationalize that and make it more efficient,” he added.

Sought for more details on the rationalization plan, Limcaoco said BPI has committed to onboard all employees of Robinsons Bank, and that there are no plans on retrenchment as the bank “want(s) all of them to stay.”

“We have communicated that we will take everyone on board. I think the Robinsons Group and the people I’ve met there, they’re excellent people, and they will be a great complement to the BPI team, and we look forward to them joining our team,” he said.

BPI reported a 4.5% year-on-year increase in its second-quarter net income to P13.0 billion, as revenues gained 4.9% to P33.9 billion.

The company ended the first half of the year with a P25.1-billion net income, reflecting a 23.0% increase. Revenues jumped 13.8% to P65.6 billion, while operating expenses grew 21.4% to P31.4 billion. — DVM, GMA Integrated News