The Bank of the Philippine Islands (stock:BPI) has completed the sale of its entire 15% stake in GoTyme Bank after receiving approval from the Bangko Sentral ng Pilipinas (BSP). The sale, valued at Php902.47 million, was part of BPI’s strategic decision to divest its holdings in the digital bank to avoid potential conflicts of interest, as both institutions offer overlapping digital financial products.
In a filing with the Philippine Stock Exchange (PSE), BPI disclosed that the BSP approved the transaction in a resolution dated October 3, 2024, which the bank received on October 9. The sale involves a total of 752,056,290 common shares, which were sold at Php1.20 per share to two entities: GoTyme Financial Pte. Ltd., which acquired the bulk of the shares, and Giga Investment Holdings Pte. Ltd.
Origins of the GoTyme Stake
BPI's ownership in GoTyme Bank stemmed from its merger with Robinsons Bank, a subsidiary of the Gokongwei Group, which had initially held the shares in the digital bank. GoTyme Bank, launched in 2022, is a joint venture between Tyme Investments Pte. Ltd. and members of the JG Summit Group (stock:JGS) and Robinsons Retail Holdings, Incorporated (stock:RRHI). It is one of only six digital banks in the Philippines licensed by the BSP.
Addressing Conflict of Interest
BPI decided to sell its shares in GoTyme Bank due to potential conflicts of interest between the two institutions. Both BPI and GoTyme offer digital financial services, and the overlap in their product lines could create competition between the entities. By selling its stake, BPI eliminates any direct involvement with GoTyme, allowing each bank to operate independently in the increasingly competitive digital banking space.
Financial Impact
The Php902 million sale represents BPI’s complete exit from GoTyme Bank, leaving the Ayala-owned bank without any shareholdings in the digital bank. The sale of the shares was finalized through Deeds of Absolute Sale, signed on April 1, 2024.
For GoTyme Bank, the sale comes as the digital bank is experiencing rapid growth. Since its launch, GoTyme has reportedly seen a 600% increase in monthly transactions and continues to onboard more than 250,000 new customers per month. GoTyme is also targeting profitability by 2026, a significant goal for a bank that is still in its early stages of development.
BPI’s Future Outlook
Meanwhile, BPI continues to see strong financial performance, reporting a 25.8% increase in net income in the first quarter of 2024, amounting to Php15.3 billion. The bank aims to further leverage its resources to expand its customer base, including investments in artificial intelligence and enhanced digital banking services.
The sale of BPI’s stake in GoTyme Bank marks a key milestone in its strategy following the merger with Robinsons Bank, positioning the Ayala-owned bank for continued growth in the highly competitive banking landscape.