BPI takes on Japanese partner for leasing business

Bank of the Philippine Islands (BPI) has taken on a Japanese partner to grow its leasing business.

The joint venture, which will be created by Century Tokyo Leasing Corp (CTL) acquiring 49 percent of the shares of BPI Leasing Corp, will be named BPI Century Tokyo Lease & Finance Corp.

“The creation of this joint venture recognizes our success in the Philippine market and its potential for further growth. BPI has a strong track record of partnerships with international financial institutions, like our BPI-Mitsui Sumitomo Insurance partnership for non-life insurance and BPI-Philam for life insurance,” Cezar P. Consing, BPI president and chief executive said.

“We are taking a strong business and making it stronger,” he added.

“We are very pleased to partner with such a well-established and proven company such as BPI on this investment in the Philippines," Shunichi Asada, CTL president and chief executive said.
>
"Finding a reliable and recognized Philippine partner will help us serve the Filipino consumers and help realize the potential of the market. I am especially optimistic about the relationship this joint venture enables within CTL’s international business," Asada added.

The joint venture will combine CTL’s resources and expertise with BPI’s proven record of growth and success in the Philippines.

The strategic partnership is taking place at a time of consumer-led growth in the Philippine market. Both companies said their respective clienteles complement each other from "both geographical and sectoral points of view."

The joint venture plans to implement innovations, reach new customers and enhance services to BPI Leasing’s valued customers.

The Ayala-led bank reported a net income of P8.03 billion in the January to June period, down by a third from P12 billion in the same period last year.

Net interest income rose 15 percent year-on-year in the first half as the bank sustained growth in its core business. Net loans jumped 23 percent to P697 billion, while total deposits climbed 30 percent to P1.072 billion, exceeding the P1-trillion mark for the first time.

Despite the drop in earnings, BPI is keeping its full-year profit guidance of P20.21 billion, as the lender sees improved earnings quarter-on-quarter for the rest of the year even amid a rising interest rate environment.

- Interaksyon