TOKYO CENTURY Corp. (TCC) is taking majority ownership of Bank of the Philippine Islands’ (BPI) leasing firm, which is a joint venture with the foreign firm.

BPI said in a disclosure to the local bourse on Wednesday that TCC’s board of directors on Nov. 9 decided to increase its stake in BPI Century Tokyo Lease & Finance Corp. (BPICTL) to 51% from 49% previously, effectively taking a majority interest in the joint venture.

BPI’s own board of directors on Nov. 18 approved the acceptance of TCC’s offer.

The bank said the transaction is expected to close before the year ends and is subject to the requisite approvals and documentation.

“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 Ayala-led bank said.

BPI in 2014 entered into a joint venture with TCC for a leasing and financing firm that offers direct leasing, sale of equipment and leaseback, among others.

“This strategic partnership allowed BPI to innovate in asset financing products and enhance the service experience of an expanding base of Philippine consumers and corporations seeking asset leasing and rental solutions,” the local lender said.

BPI’s net income dropped 33.7% to P5.5 billion in the third quarter due to higher loan loss provisions amid the coronavirus pandemic.

This brought BPI’s net profit for the first nine months of the year to P17.17 billion, down 22.1% from the P22.03 billion booked in the comparable year-ago period.

BPI shares closed at P86.70 apiece on Thursday, rising by P2.25 or 2.66% from its previous finish.

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