BDO Investor Presentation Website Sept 2013 enhancements upd … · 2018-04-25 · This presentation and the presentation materials distributed herewith include forward ... • Corporate

Investor Presentation

September 2013

2

Legal Disclaimer

This presentation and the presentation materials distributed herewith include forward-looking statements. All statements, other than statements of historical facts that address activities, events, or developments that BDO Unibank, Inc. (“BDO”) expects or anticipates will or may occur in the future (including but not limited to projections, targets, estimates and business plans) are forward-looking statements. BDO’s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to price fluctuations, actual demand, exchange rate fluctuations, market shares, competition, changes in legal, financial and regulatory frameworks, international economic and financial market conditions, political risks, cost estimates, and other risks and factors beyond our control. In addition, BDO makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.

Presentation Outline

I. OVERVIEW

II. BUSINESS FRANCHISE

III. FINANCIAL HIGHLIGHTS

IV. OWNERSHIP, BOARD, AND MANAGEMENT

4

Background

The Philippines’ largest bank as at June 30, 2013 with total assets of P1.3 Tn (USD 30.8 Bn)

The Philippines’ largest bank as at June 30, 2013 with total assets of P1.3 Tn (USD 30.8 Bn)

Part of the SM Group, one of the country’s largest conglomerates

Part of the SM Group, one of the country’s largest conglomerates

A full-service universal bank with one of the widest networksA full-service universal bank with one of the widest networks

One of the country’s strongest Board of Directors in terms of• Banking experience• Corporate governance

One of the country’s strongest Board of Directors in terms of• Banking experience• Corporate governance

5

Acquired GE Money Bank

U/KB license

Milestones

Est. as Acme Savings Bank

Acquired by SM Group

KB license

Merged with Dao Heng Bank Philippines

Acquired 1st e-Bank business incl. 60 branches

Acquired Banco Santander Philippines

Acquired UOB Philippines’branch banking business

Merged with Equitable PCI Bank. Acquired Amex Savings Bank Philippines

Source: BDO. BDO Total Assets as at each relevant period or year-end.

AssetsP13 BN

P36 BN

P77 BNP121 BN

P149 BN

P234 BN

P862 BN

P1.0 TN

Commercial Bank Expansion

The 1st Philippine bank with P1.0 TRN in assets

1976 1996 1968 1994 2001 2002 2010 2012 20092007

P617 BN

USD1BN capital raising

Acquired Rural Bank of San Juan

20052003

P1.2 TN

6

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Luzon – 232

Metro Manila – 418

Visayas – 88

Mindanao – 57

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• 795 Domestic Branches + 34 additional branch licenses• 15 International Offices worldwide• 2,136 ATMs

Source: BDO as of 17 Sept 2013

Domestic and International Network


I. OVERVIEW




8

Branch Banking

• Deposit and related products

• Over-the-counter transactions

• Cross-selling distribution platform

TransactionBanking

• Cash management services

• Electronic banking• ATMs• Prepaid cards• Merchant acquiring• Remittances

Insurance

• Brokerage• Bancassurance

Trust Banking

• Investment management

• Unit investment trust funds

• Living trusts• Retirement funds• Special trusts /

custodianship

Consumer Lending

• Auto• Mortgage• Credit cards• Personal loans

Corporate and Institutional

Banking

Investment Banking Private Banking Treasury

ServicesLeasing and

Finance

• Corporate and middle market lending

• Trade finance• Specialized lending• Financial Institutions• Cross-border

financing

• Underwriting and distribution of Fixed income and equity securities

• Financial advisory• Project finance• Loan syndication

• Wealth advisory• Customized

portfolio management

• Fixed income dealership

• Foreign exchange transactions

• Portfolio management

• Liquidity management

• Direct lease, sale and leaseback arrangements

• Installment paper purchases

• Receivable discounting and factoring

Full Service Operations

9

Market-leading

P ositions in A lm ost

A ll B usiness Lines

#1

Loans

#1

D eposits

#1

P rivate B anking

#1

R em ittances

#1

Trust & A sset Mgt.

Leading Trade

Services P rovider1

#1

C redit C ards3#2

Leasing & Finance

#1

Investm ent B anking 4

Major P layer in

C ash Managem ent2

#4

Insurance B rokerage5

(#1 Local)

Notes:1 According to The Asian Banker, Global Finance, The Asset, & Trade Finance Magazine2 According to The Asset3 In terms of cardholder base & merchant acquiring gross billings4 In terms of corporate issuances5 Among insurance brokers in terms of premiums produced

Business Franchise

10

7 0 6

3 7 0

1 8 11 2 3 1 1 0 1 0 9 1 0 3 9 6 9 3

8 5 1

B P I M B T S C h a r t C h in a P N B R C B C U C P B L B P H S B C

8 7 9 8 2 4

5 4 34 2 0

2 9 0 2 6 0 2 4 8 1 9 3 1 7 9

1 ,0 1 4

M B T B P I L B P P N B C h i n a U B P R C B C U C P B S E C B

5 7 3 5 4 0

2 5 8 2 2 3 1 8 9 1 8 71 2 9 1 2 0 1 0 4

8 0 6

B P I M B T L B P P N B C h i n a R C B C S E C B D B P U B P

1 ,2 1 8

1 ,0 0 8

6 8 25 4 9

3 7 6 3 5 1 3 4 3 3 3 4 2 9 3

1 ,3 3 9

M B T B P I L B P P N B R C B C D B P C h in a U B P S E C B

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��&��&��&��&� '(�� '(�� '(�� '(��

BDO Market Share – 16%

��&��&��&��&� '(�+ ��) �� ,��'(�+ ��) �� ,��'(�+ ��) �� ,��'(�+ ��) �� ,��----

��&��&��&��&� '(�� . �� /� ��'(�� . �� /� ��'(�� . �� /� ��'(�� . �� /� ��

(in PHP billions)


(in PHP billions)


(in PHP billions)


(in PHP billions)

Source: Company data, consolidated statements of condition (SOC). Ranking as at 30 June 2013

Note: Financials prepared by banks under BSP’s SOC requirements differ slightly from reported financials under SEC guidelines due to certain differences in accounting rules requested by the two authorities* Gross customer loans outstanding as at 30 June 2013 are BDO estimates

2Q 2013 Industry Rankings


I. OVERVIEW




12

1H13 Income Statement(P bn) 1H13 1H12 YoY %

Interest Income 27.0 26.5 2%Interest Expense 7.1 9.1 -22% Net Interest Income 19.9 17.4 14%

Non-Interest Income 20.3 11.2 81% Fee Income 7.6 6.8 11% Trading & FX 11.0 3.2 241% Others 1.8 1.2 50%

Gross Operating Income 40.1 28.5 41%

Operating Expenses 21.1 19.4 9% Pre-Provision Op. Profit 19.1 9.2 108%

Provisions 4.0 2.5 59%Taxes & Minority Interest 0.9 0.8 8% Net Income 14.1 5.8 144%

13

2009 – 2012 Income Statement(P bn) 2009 2010 2011 2012

Interest Income 48.8 49.9 50.5 54.0Interest Expense 18.3 15.8 16.7 17.8 Net Interest Income 30.6 34.2 33.8 36.2

Non-Interest Income 15.5 17.8 20.9 24.4 Fee Income 9.6 10.4 12.3 13.4 Trading & FX 3.6 5.8 5.6 8.2 Others 2.3 1.6 3.0 2.8

Gross Operating Income 46.0 52.0 54.7 60.6

Operating Expenses 32.1 34.8 36.3 39.9 Pre-Provision Op. Profit 13.9 17.2 18.4 20.8

Provisions 6.2 6.7 6.1 4.9Taxes 1.7 1.6 1.6 1.5 Net Income 6.0 8.8 10.5 14.3

14

2Q13 Balance Sheet(P bn) 2Q13 2Q12 YoY %

ResourcesReserve Assets 259.2 201.4 29%Investment Securities 226.4 221.4 2%Gross Customer Loans 806.6 718.9 12%Investment Properties-net 9.3 9.1 3%Other Assets 29.0 20.9 39%

Total Resources 1,330.5 1,171.7 14%

Liabilities and CapitalLiabilities

Deposits 1,015.5 868.5 17%Bills Payable/Sub-Notes 91.3 66.0 38%Other Liabilities 64.0 133.8 -52%

Total Liabilities 1,170.7 1,068.3 10%Total Capital 159.8 103.4 55%

Total Liabilities & Capital 1,330.5 1,171.7 14%

15

2009 – 2012 Balance Sheet(P bn) 2009 2010 2011 2012

ResourcesReserve Assets 176.6 229.6 203.5 201.2Investment Securities 171.7 197.3 188.4 237.3Gross Customer Loans 472.7 541.5 670.1 769.0Investment Properties-net 13.8 12.0 10.1 9.1Other Assets 27.2 20.5 25.1 27.8

Total Resources 862.0 1,000.9 1,097.3 1,244.4

Liabilities and CapitalLiabilities

Deposits 694.7 782.6 858.6 931.6Bills Payable/Sub-Notes 54.6 89.0 97.7 100.4Other Liabilities 44.9 40.5 44.1 55.2

Total Liabilities 794.2 912.1 1,000.4 1087.2Total Capital 67.9 88.7 97.0 157.3

Total Liabilities & Capital 862.0 1,000.9 1,097.3 1,244.4

16

1,015

695637

783

445

859

932

17%10%13%9%

43%

-5%

9%

100

250

400

550

700

850

1,000

1,150

1,300

2007 2008 2009 2010 2011 2012 2Q13

(P bn)

-120%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

Total Deposits % Growth

Key Growth IndicatorsInvestment Securities

769

541

393473

778

297

670

12%15%15%

32%

20%15%

24%

0

100

200

300

400

500

600

700

800

900

1,000

1,100

2007 2008 2009 2010 2011 2012 2Q13

(P bn)

-90%

-75%

-60%

-45%

-30%

-15%

0%

15%

30%

45%

Gross Loans % Growth

Gross Customer Loans

Deposits Fee-based Income

12

10

8

109

10

13

10% 11%18%

9%12%

-11%

22%

0

2

3

5

6

8

9

11

12

14

15

17

2007 2008 2009 2010 2011 2012 2Q13

(P bn)

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

Fee-Based Income % Growth

197

156

172

226

165

188

237

2%

-8% -5%

10%15%

-4%

26%

100

120

140

160

180

200

220

240

260

280

300

2007 2008 2009 2010 2011 2012 2Q13

(P bn)

-65%

-55%

-45%

-35%

-25%

-15%

-5%

5%

15%

25%

35%

Investment Securities % Growth

17

Net Income

Integration R eengineering/

R e-scaling of

O perations

G lobal

Financial

C risis

14.114.3

10.5

8.8

6.06.5

2.2

0

2

3

5

6

8

9

11

12

14

2007 2008 2009 2010 2011 2012 1H 13

(P bn)

18

Capital Adequacy Ratio

Note:* CAR ratios per BSP Basel II on a consolidated basis

2.7%

15.6%

10.0%10.0%

8.3%9.0%

9.9%

15.2%

3.9%

5.6%

4.1%4.5% 4.0%4.6%

0%

5%

10%

15%

20%

2007 2008 2009 2010 2011 2012 2Q13

Tier 2 Tier 1

14.5% 13.5%12.4%

14.0%15.6%

19.1% 18.3%

Min Total C A R

per B asel II

Min Tier 1 per

B asel II

19

The Banker Top 1000 World Banks – Tier 1 Capital

Tier 1 Capital Ranking of Philippine BanksAs of 31 December 2012

Country Rank Philippine Bank

Tier 1 Capital (US$ Mn)

251 396 1 BDO Unibank, Inc. (BDO) 3,413333 375 2 Metropolitan Bank & Trust Company (MBT) 2,400386 409 3 Bank of the Philippine Islands (BPI) 1,985642 645 4 Rizal Commercial Banking Corp. (RCBC) 902655 706 5 Security Bank (SBC) 871663 n/a 6 China Bank (CHIB) 858702 768 7 Union Bank of the Philippines (UBP) 759765 699 8 Philippine National Bank (PNB) 644986 n/a 9 Philtrust Bank 355992 n/a 10 East West Banking Corp. ((EW) 351

Source: The Banker Top 1000 World Banks July 2013

World Rank Current Previous

20

Credit Ratings

BDO Credit Ratings Capital Moody's Fitch Intelligence

Date 26-Jul-2013 16-May-2013 7-Aug-2013

Issuer/Debt Rating (IDR) - Long Term Ba1 BB+ BB+Outlook Under Review Stable Stable

Bank Financial Strength Rating (BFSR)/Viability/Individual Rating D bb+ BBB-Outlook *Positive Stable

*Revised to positive from stable on 04/26/13

Source: Moody's, Fitch & Capital Intelligence


I. OVERVIEW




22

Shareholder Structure

Source: Top 100 Shareholders as of 30 Jun 2013

SM Investments Corp. 40.9% PCD Nominee Corp. (Non-Filipino) 30.5% PCD Nominee Corp. (Filipino) 10.9% Multi-Realty Development Corporation 8.8% Sybase Equity Investments Corporation 5.1% Sub-Total, Top Shareholders 96.2%

Top Shareholders as of 30 Jun 2013

23

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SM Group Profile and Associated Synergies

24

� 7 directors out of 11 have over 100 years’ combined experience from both local and foreign banking institutions

� 2 directors are practicing attorneys who head their own law firms

One of the strongest Board of Directors in the industry with extensive banking and related experience.

ExperiencedBankers

PracticingLawyers

� 2 directors are successful businessmen who have made their mark in the fields of retailing, real estate, and commercial operations

SuccessfulEntrepreneurs

Board of Directors

25

Jesus A. Jacinto Jr.Vice Chairman — first appointed to the Board in 1996� Chairman and President of BDO Insurance Brokers

� Chairman and President of Jaces Corp.

� MBA Columbia University

Teresita T. SyChairperson — first appointed to the Board in 1977� Serves as Director in multiple subsidiaries of BDO

� Vice Chairperson of SMIC and Director of other SM Group companies, including Multi-Reality Dev. Corp.

Antonio C. PacisDirector — first appointed to the Board in 2004� Director of BDO Capital

� Corporate lawyer since 1967

� Degree from Harvard Law School

Henry T. Sy SeniorChairman Emeritus — first appointed to the Board in 1976� Founder and Chairman of the SM Group of Companies

� Started his entrepreneurship career in 1958

� Chairman of SMIC, SM Prime Holdings and SM Dev. Corp.

Josefina N. TanDirector — first appointed to the Board in 2007� President of BDO Private Bank

� Former Director of EPCIB from 2005 to 2007

� Former Director of Banco de Oro from 2001 to 2005

Nestor V. TanPresident — first appointed to the Board in 1998� Holds Directorships of numerous BDO subsidiaries

� Director of the Bankers Association of the Philippines

� MBA Wharton School

Henry T. Sy Jr.Director — first appointed to the Board in 2007� Vice Chairman of SMIC and of SM Dev. Corp.

� President of National Grid Corporation of the Philippines

� Director in several companies within SM Group

Cheo Chai HongDirector — first appointed to the Board in 2010� Director of UOB (Philippines), UOB Global Capital Private,

UOB (Thai) and Encus International

� Head of Corporate Planning and International of UOB Group

Jimmy T. TangIndependent Director — first appointed to the Board in 1984� Serves as Independent Director since 2002

� Previously served as Director since 1984

� Chairman and President of AVESCO Group of Companies

Jones M. Castro Jr.Independent Director — first appointed to the Board in 2012� Served as Head for South Asia and SEA at Wells Fargo Bank

� MBA Stanford University

Board of Directors

Jose F. BuenaventuraIndependent Director — first appointed to the Board in 2013� Senior Partner of Romulo Mabanta Buenaventura Sayoc & De

Los Angeles Law Offices since 1976

� Master of Laws from Georgetown University Law Center

Christopher A. Bell-KnightDirector — re-elected to the Board in 2013� Previously served as BDO Director from May 2005 - Sep 2010

� Former VP and Country Head of the Bank of Nova Scotia

� Associate of the Chartered Institute of Bankers - British

26

Arthur L. Tan Head — IT Operations

� With BDO since 2002

� 15-year banking experience

Nestor V. Tan President� With BDO since 1997� 30-year banking experience

Ador A. AbrogenaHead — Trust and Investments� With BDO since 1990� 34-year banking experience

Emmanuel T. NarcisoSVP — Transaction Banking� With BDO since 2011� 28-year banking experience

Services

Corporate Support

Dennis B. Velasquez Head — Central Operations



Evelyn L. Villanueva Head — Risk Management



Evelyn C. SalagubangHead — Human Resources


� 18-year experience in HR

Luis S. Reyes Jr. Head — IR & Corplan



Rafael G. BesaHead — Marketing



Ricardo V. Martin Head — Compliance & Legal



Lucy Co DyHead — Comptrollership



Intermediation

Walter C. WassmerHead — Business Lending



Rolando C. TanchancoHead — Consumer Lending



Jaime C. Yu Head — Branch Banking



Pedro M. Florescio III Head — Treasury



Jonathan C. DioknoHead — Remittance Origination� With BDO since 2001� 18-year banking experience

Josefina N. Tan Head — Private Banking� With BDO since 2003� 36-year banking experience

Eduardo V. Francisco Head — Investment Banking� With BDO since 1999� 25-year banking experience

Georgiana A. GamboaHead — Leasing & Finance� With BDO since 2010� 32-year banking experience

Evylene C. SisonHead — Asset Management� With BDO since 2010� 21-year banking experience

Maria Theresa L. Tan General Manager — BDO Insurance� With BDO since 2009� 20-year banking and insurance experience

Geneva T. GloriaHead — Remittance Distribution� With BDO since 2003� 24-year banking experience

BDO Management Team

27

BDO UNIBANK, INC. PHILIPPINE PARENT BANK

Service Companies

BDO Remit (Macau) Ltd. (100%)

Real Estate CompaniesInsurance Companies

PCIB Securities, Inc. (100%)

BDO Private Bank, Inc. (100%)

BDO Remit Limited (100%)

BDO Capital & Investment Corporation (100%)

BDO Insurance Brokers, Inc. (100%)

BDO Strategic Holdings Inc. (100%)

Armstrong Securities, Inc. (80%)

BDO Leasing and Finance, Inc.[formerly PCI Leasing and Finance, Inc.] (87%)

BDO Remit (Italia) S.p.A. (100%)

Financial Companies

Manila North Tollways Corp. (12%)

BDO Remit (USA), Inc. (100%)

Organizational Structure

Equimark-NFC Development Corp. (60%)

Generali PilipinasInsurance Co. (100%)

Express Padala (HK) Ltd. (100%)

Express Padala Frankfurt GmbH (100%)

BDO Securities Corporation (100%)

CBN GrupoInternational Holdings

B.V. (60%)

Averon Holdings Corporation (100%)

BDO Rental, Inc. (100%)

BDORO Europe Ltd. (100%)

NorthPine Land, Inc. (20%)

Taal Land, Inc. (33%)

SM Keppel Land, Inc. (33%)

Generali Pilipinas Holding Co., Inc. (BDO – 38.05% &

BDO Cap – 1.95%)

Generali Pilipinas Life Assurance Co.(100%)

Thank you.www.bdo.com.ph

Documents

BDO Investor Presentation Website Sept 2013 enhancements upd … · 2018-04-25 · This presentation and the presentation materials distributed herewith include forward ... • Corporate