BPI sells FEB Savings to JTKC Equities

The Ayala-controlled Bank of the Philippine Islands (BPI) has sold its entire stake in dormant FEB Savings Bank to a group led by JTKC Equities Inc., a former principal shareholder in mid-sized International Exchange Bank (iBank).

According to industry sources, FEB Savings Bank will be taken over by iRemit, the remittance business venture of JTKC Equities led by Ben Tiu.

JTKC will operate and transform FEB Savings Bank into Sterling Bank of Asia which will then be the settlement bank of iRemit, the role formerly played by iBank. iBank was acquired by Union Bank last August.

"It is much like the route taken by courier service LBC, whose business spilled over to the remittance business and LBC Development Bank," industry sources said.

It was estimated that JTKC Equities will be shelling out "at least P750 million for FEB Savings Bank and its six branches."

The remittance business can result in deposit taking, consumer lending, and other forms of commercial lending. There will also be foreign currency transactions if the proposed Sterling Bank of Asia will apply for an FCDU license.

BPI, meanwhile, still has several branch licenses from its earlier acquisitions. "It’s a matter of timing, and asset upgrading," the sources added.