By selling / converting BTC, the bank would still make a profit and the article also mentions to sell education-courses for customers interested in Bitcoin (most likely inlcuding informational material).
So it's a business. May I assume they'll open up some sort of exchange in a subdomain of their webpage for buying and selling with crazy fees?
Hundreds of years ago banks were dealing with gold and other precious metal money, there's nothing that says that banks can't deal with Bitcoin. Bitcoin can't replace all financial services, it can only offer transferring and storing of money.
Sure, but people were handing out their gold to banks. Not the opposite.