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.

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