BPI to unite two of its subsidiaries

The merging of BPI Capital Corp and BPI Bancassurance Inc will eliminate duplication, streamline operations, and lower costs.

Bank of the Philippine Islands (BPI), the country’s third biggest bank in asset size, is merging two of its subsidiaries, BPI Capital Corp. (BPICC) and BPI Bancassurance Inc. (BBI) as part of its business structure reforms.

BPI has asked the Bangko Sentral ng Pilipinas (BSP) to approve the merger with BPICC as the surviving company.

Based on documents submitted to the BSP, BPI said merging the two entities will eliminate duplication and streamline operations. The combined resources of BPICC and BBI will also benefit the parent bank in terms of cost savings.

BPICC is an investment house with quasi-banking functions. It has total assets of P3.04 billion. Last year the company earned P162.4 million.

BBI, a fully owned subsidiary of BPI with net assets of P52 million, has been inactive since 2009. In 2010 it reported a loss of P25 million. It used to be in the business of marketing life and non-life insurance products.

In 2009, BPI transferred 51 percent of its shareholdings in Ayala Life Assurance Inc. to the Philippine American Life and General Insurance Co. (PhilamLife).

View the full story in The Manila Bulletin.