Japanese firm increases ownership in JV with BPI

Japanese leasing firm Tokyo Century Corp. (TCC) is bound to become the majority shareholder in its joint venture with Bank of the Philippine Islands (BPI) after deciding to acquire additional 2-percent stake.

Following the transaction, the Ayala-led bank said that TCC will own 51 percent in BPI Century Tokyo Lease and Finance Corp. (BPICTL).

The Japanese firm’s board of directors decided to increase its ownership in the joint venture last November 9. The BPI, meanwhile, approved the acceptance of the offer on November 18.

The transaction is subject to requisite approvals and documentation. It is eyed to be completed before the year ends.

“With TCC as majority shareholder, this allows the joint venture to optimize the value of TCC’S expertise in the full service operating lease industry while capitalizing on BPI’S customer base,” the listed bank said in a disclosure.

Shares in BPI climbed by 2.66 percent, or P2.25, to close at P86.70 each amid the 0.77-percent drop for the main index on Thursday.

BPI sealed the strategic partnership with TCC in 2014, which allowed the bank to improve its asset financing products.

Earlier this month, the Ayala-led bank signed an agreement with financial technology startup Jazzypay Inc. to provide digital payment scheme for online bank users.

BPI Chief Digital Officer Noel Santiago said that the pact is seen boosting customer-to-digital payments, which he considered a significant aspect of the current business environment.

He added that the partnership is eyeing to “to build on our digital ecosystem securely, enable clients to transact efficiently, and facilitate contactless payments for small and big online businesses alike.”

As of end-september, BPI saw its net earnings decline by 22.1 percent to P17.17 billion from P22.03 billion year-on-year because of higher provisions for potential credit losses. The nine-month revenues, meanwhile, climbed by 9.7 percent to P77.88 billion.

Total assets increased by 3.6 percent to P2.2 trillion as of endSeptember. This, as the common equity tier 1 ratio and capital adequacy ratio stood at 15.46 percent and 16.35 percent, which are both above minimum regulatory requirements.