NOTICE IS HEREBY GIVEN to the creditors and depositors of BPI DIRECT BANKO, INC. (“BanKo”) and LEGAZPI SAVINGS BANK, INC. (“LSB” and, together with BanKo, the “Constituent Banks”) that the proposed merger between the Constituent Banks, with BanKo as the surviving bank (the “Merger”), and the terms and conditions set forth in the Articles of Merger and Plan of Merger, and Supplement to the Plan of Merger, have been approved and such approval was ratified and confirmed by the following: (1) the Board and Stockholders of BanKo on January 22, 2026 and May 4, 2026 respectively; and (2) the Board and Stockholders of LSB on January 22, 2026 and May 4, 2026, respectively. The Constituent Banks secured the clearance of the Philippine Competition Commission on the Merger on May 18, 2026, and the approval of the Monetary Board in its Resolution dated July 2, 2026, as reflected in the letter of the Bangko Sentral ng Pilipinas (“BSP”) July 7, 2026.
In accordance with Section 5 of Republic Act (“R.A.”) No. 11840 or an Act Amending Certain Provisions of R.A. No. 3591, as amended, otherwise known as the Philippine Deposit Insurance Corporation (“PDIC”) Charter, the consent of the PDIC to mergers, consolidations, and acquisitions of banks is no longer required.
The effectivity of the Merger is subject to the approval of the Securities and Exchange Commission.
Except for the transfer of deposits of the depositors from LSB to BanKo upon the effectivity of the Merger, which will result in LSB deposits being assumed by BanKo as its deposit liabilities, subject to applicable terms and conditions for the same type of BanKo deposits in accordance with pertinent BSP rules and regulations, there shall be no change in the rights of depositors of the Constituent Banks in view of the Merger.
This announcement serves as notice to all creditors and depositors of the Merger of the Constituent Banks.
The merger of BPI Direct BanKo, Inc. (BanKo) and Legazpi Savings Bank, Inc. (LSB) brings together two BPI Group institutions with complementary strengths — BanKo’s expertise in microfinance and digital banking, and LSB’s deep roots in serving teachers, non-teaching personnel, and local communities.
The merger will result in a stronger and more resilient institution, with greater capacity to serve micro-entrepreneurs, educators, and the communities they support across the country.
Should you have additional questions or clarifications, you can take any of these options:
The merger is targeted to take effect on October 1, 2026, subject to the completion of all required regulatory approvals.
LSB will be legally merged into BanKo, with BanKo as the surviving bank. LSB will cease to exist as a separate legal entity upon the effectivity of the merger (October 1, 2026).
After the merger, activities will commence to integrate BanKo and LSB systems, processes, and branch operations. We are committed to ensuring a smooth and orderly transition for all clients. Please continue transacting with your branch. At this time, it is business as usual and there is no change nor action needed on your part while we work on making the transition to BanKo as smooth as possible. Rest assured that we will provide you with updates and information if there will be any change or action needed on your part.
Both BanKo and LSB clients will benefit from being part of a unified institution backed by the BPI Group. You will continue to have access to financial products and services, with the combined network of 400+ branches offering expanded reach and improved capabilities over time.
Rest assured that your accounts, deposits, and loans remain secure and will continue to be honored in accordance with applicable banking laws and regulations.
Your LSB account will remain the same. Please continue transacting with your LSB branch. At this time, it is business as usual and there is no change nor action is needed on your part while we work on making your transition to BanKo as smooth as possible. Rest assured that we will provide you with updates and information if there will be any change or action needed on your part.
Certain LSB deposit products may be harmonized with BanKo's product offerings following the merger.
Rest assured that we will provide you with updates and information if there will be any change or action needed.
Further details on specific product transitions will be communicated through separate advisories.
No. Please continue to transact at your LSB branch using your existing LSB account details. You will be notified when your account has been fully integrated and when you may begin transacting at any BanKo branches.
Your existing LSB loan terms and conditions will continue to be honored in accordance with your loan agreement.
If there is any change, the applicable advisories will be provided.
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