March 2012 - BDO Investor... · Investor Presentation March 2012. 2 Legal Disclaimer This presentation and the presentation materials distributed herewith include forward-looking

Investor Presentation

March 2012

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. DIRECTORS AND SENIOR MANAGEMENT

III. FINANCIAL HIGHLIGHTS

4

Background

The Philippines’ largest bank as at December 31, 2011

Part of the SM Group with associated synergies and benefits

A 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

5

Acquired GE

Money Bank

U/KB license

Milestones

1976 1996 20031968 1994 2001 2002 2005 2007 2009

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.

Assets

P13 BN

P36 BN

P77 BN

P121 BN

P149 BN

P234 BN

P617 BN P862 BN

2010

P1.0 TN

Commercial Bank Expansion

First and only Philippine bank

with P1.0 trn in assets

6

Branch Banking

Deposit and

related products

Over-the-counter

transactions

Cross-selling

distribution platform

Transaction

Banking

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

BankingPrivate Banking

Treasury

Services

Leasing 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

7

North

America - 4Europe - 8

Middle

East - 1

SE Asia, HK

& Taiwan - 7

Luzon – 210

Metro Manila – 395

Visayas – 84

Mindanao – 55

Philippines -

744

• 744 Domestic Branches

• 20 International Offices worldwide

• 1,645 ATMs

Source: BDO. As at 31 March 2012

Domestic and International Network

8

Market-leading

Positions in Almost

All Business Lines

#1

Loans

#1

Deposits

#1

Private Banking

#1

Remittances

#1

Trust & Asset Mgt.

Leading Trade

Services Provider1

#1

Credit Cards3

#2

Leasing & Finance

#1

Investment Banking4

Major Player in

Cash Management2

#4

Insurance Brokerage5

(#1 Local)

Business Franchise

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

9

959

836

640

350 341 317 269 267 263

1,102

MBT BPI LBP RCBC DBP PNB Union Citi China

460 445

238166 149

113 113 112 96

669

BPI MBT LBP RCBC China PNB DBP Citi Allied

670

382

151 14095 91 88 68 66

711

BPI MBT SChart China UCPB HSBC RCBC LBP Deutsche

682 682

507

257 237 216 207165 159

857

BPI MBT LBP RCBC PNB China Union UCPB DBP

Industry Rankings

Notes:

1. Data from published consolidated statements of condition (SOCs) as of 31 Dec. 2011

2. Gross customer loans are BDO estimates

Total Assets Gross Customer Loans*

Customer Deposits Assets Under Management

BDO Market Share – 16%

(in PHP billions)


(in PHP billions)


(in PHP billions)


(in PHP billions)

10

Shareholder Structure

Source: Top 100 Shareholders as of 31 Dec 2011

PCD Nominee Corp. (Filipino) 27.6%

PCD Nominee Corp. (Non-Filipino) 26.5%

SM Investments Corp. 26.2%

DBTM OT-024 SM Investments Corp. 8.0%

Sub-Total, Top Shareholders 88.3%

Top Shareholders as of 31 Dec 2011

11

Malls

Financial

Services

Property

Hotels &

Conven-

tions

Retail Access to SM’s customer

network

• 14,872 tenants

• 5,000 suppliers

• 3.5 million average daily foot

traffic

• In-house business

• Home mortgage financing

for SM property projects

New business opportunity

• Goodwill from the SM

franchise

• Joint product development

SM expertise

• Middle market knowledge

• Expertise in retail market

and real estate

Branch locations

• Branches, ATMs in SM malls

• Dominant domestic mall

developer/operator

• 42 malls with GFA of 5.1 mn

sq.m.

• Leading residential

condominium developer in

Metro Manila in terms of units

sold

• Among the fastest growing

commercial, resorts and hotel

developers in the Philippines

• Largest local retail chain

• 177 stores nationwide

• Biggest domestic banking

operations

• Interests in BDO and China

Bank

SM Group Profile and Associated Synergies


I. BUSINESS FRANCHISE



13

5 directors out of 11 have over 100 years’ combined experience from both

local and foreign banking institutions

2 directors are successful businessmen who have made their mark in the

fields of retailing, real estate, and commercial operations

1 director, a Harvard law graduate, is a practicing attorney who heads

a law firm

1 director is a former member of the BSP’s Monetary Board

One of the strongest Board of Directors in the industry with extensive banking

and related experience.

Successful

Entrepreneurs

Experienced

Bankers

Practicing

Lawyer

Ex-Monetary

Board Member

1 director is a former Chairman and Senior Partner of Price Waterhouse

Coopers, Phil. and former President of the International Social Security

Association, a Geneva-based organization

Auditor

1 director is a former Regional VP for IFC Operations in East Asia & the

Pacific, South Asia, Latin America & the Caribbean, Middle East, & North Africa

and currently representing the IFC.

Ex- World Bank/IFC

Senior Official

Board of Directors

14

Board of Directors

Teresita T. Sy

Chairperson

Corazon S. de la Paz-Bernardo

Vice Chairperson

Teresita T. Sy, 61, Filipino, is the Chairperson of BDO and was first elected to the Board in 1977.

Concurrently, she serves as the Chairperson, Vice Chairperson, and/or Director of various

subsidiaries and affiliates of BDO such as BDO Private Bank, Inc., BDO Leasing & Finance, Inc.,

BDO Capital & Investment Corporation, BDO Foundation, Inc., Generali Pilipinas Holding

Company, Inc., Generali Pilipinas Life Assurance Company, Inc., and Generali Pilipinas

Insurance Co., Inc. Ms. Sy is the Vice Chairperson of SM Investments Corporation and adviser

to the Board of SM Prime Holdings, Inc. She also sits as Chairperson, Vice Chairperson and/or

Director of such companies as Multi-Realty Development Corporation, SM Commercial Properties

(formerly SM Land, Inc.), Supervalue, Inc, SM Mart, Inc., SM Retail, Inc., Super Shopping Market,

Inc., Pilipinas Makro, Inc., and First Asia Realty Development Corp. A graduate of Assumption

College, she brings to the Board her varied expertise in banking and finance, retail merchandising,

mall and real estate development. She is the first Filipino to receive the Retail Banker of the

Year Award from The Asian Banker and the only Filipino to be included among Asia’s 50

Power Businesswomen by Forbes Magazine. She is also a recipient of the Asian Corporate

Director Recognition Award from Corporate Governance Asia.

Corazon S. de la Paz-Bernardo, 70, Filipino, is currently the Vice Chairperson of BDO. She was

President of the Social Security System and Vice Chairman of the Social Security Commission

from 2001 to 2008. She was also President of the International Social Security Association from

2004 to 2010. She was Chairman and Senior Partner of Joaquin Cunanan & Co. (Pricewaterhouse

Coopers, Philippines) from 1981 to 2001. She was past president of the Philippine Institute of

Certified Public Accountants, the Management Association of the Philippines, the Financial

Executives Institute of the Philippines, Inc., and the Philippine Fulbright Scholars Association.

Board of Directors

Nestor V. Tan

President and Director

Cheo Chai Hong

Director

Nestor V. Tan, 54, Filipino, was elected President of BDO in July 1998. He also concurrently

holds vice chairmanships and/or directorships in the following subsidiaries of BDO Unibank, Inc.:

BDO Capital & Investment Corporation, BDO Insurance Brokers, Inc., BDO Leasing and Finance,

Inc. BDO Private Bank, Inc.; BDO Remit (USA), Inc., Generali Pilipinas Life Assurance Company,

Inc., and SM Keppel Land. He also concurrently holds chairmanship of BDO Strategic Holdings, Inc.

and Megalink, Inc. He is also a Director and Treasurer of Generali Pilipinas Insurance Co., and

Trustee of BDO Foundation, Inc. He is also a Director of the Bankers Association of the Philippines.

Mr. Tan had a fifteen-year banking career with the Mellon Bank (now Bank of New York – Mellon)

in Pittsburgh, PA, the Bankers Trust Company (now Deutsche Bank) in New York and the Barclays

Group in New York and London. Prior to joining the Bank, he was the Chief Operating Officer for

the Financial Institution Services Group of BZW, the investment banking subsidiary of the Barclays

Group. He holds a Bachelor’s degree in Commerce from De La Salle University and received his

MBA from Wharton School, University of Pennsylvania.

Cheo Chai Hong, 59, Singaporean, was elected Director of BDO in May 2010. He currently sits

as Director of United Overseas Bank Philippines (UOB Philippines), UOB Global Capital Limited,

and United Overseas Bank (Thai) Public Company Limited, and Encus International Pte. Ltd. He is

Managing Director and Head of Corporate Planning and International Strategy Department of UOB

Singapore. He was formerly the Executive Vice President of Group Credit (Middle Market & STCF)

Department of UOB Singapore. He holds an Honor’s Degree in Business Administration from the

University of Singapore.

Jesus A. Jacinto, Jr., 64, Filipino, was elected Vice Chairman of BDO in May 1996, and is

concurrently the Chairman and President of BDO Insurance Brokers, Inc. Formerly, he was Director

and Executive Vice President of CityTrust Banking Corp.; Director of CityTrust Investments Phil.

and CityTrust Finance Corp.; and Vice President and Managing Partner of Citibank N.A. He holds a

Bachelor’s degree in Business Administration from Fordham University in New York City and MBA

(International Business) from Columbia University, New York.

Jesus A. Jacinto, Jr.

Vice Chairman

Board of Directors

Farida Khambata

Director

Teodoro B. Montecillo

Independent Director

Antonio C. Pacis

Director

Farida Khambata, 63, Canadian, was elected Director of BDO in September 2010. She was

formerly IFC's Regional Vice President heading IFC's operations in East Asia and the Pacific,

South Asia, Latin America and the Caribbean, and the Middle East and North Africa. Previously,

she served as Vice President for Portfolio and Risk Management and Director of IFC's Treasury

Department. She also held positions as Director, Division Manager, and Senior Investment Officer

at IFC's former Central Capital Markets Department. Mrs. Khambata also worked for the World Bank

before moving to IFC in 1986. She holds post-graduate degrees in Economics and Business

Management from Cambridge University and the London Business School. A Certified Financial

Analyst, she has also participated in the Executive Development Program at Wharton Business School.

Teodoro B. Montecillo, 77, Filipino, was first appointed Independent Director of BDO in

August 2004.He is also currently an Independent Director of Citibank Savings, Inc. He was a

member of the Monetary Board of the BSP from 1996 to 2002, and Chairman of the Central Bank

Board of Liquidators from 1999 to 2002. In addition, he held various positions in areas of operations,

credit and external debt management in Citibank, N.A. (Manila) and Citibank Head Office

(New York) from 1965 to 1996. He holds a Bachelor of Science in Education degree from the

University of the East, Bachelor of Science degree in Business Administration from the University

of the Philippines, and received his MBA from Northwestern University, Chicago, USA.

Antonio C. Pacis, 70, Filipino, currently serves both BDO and BDO Capital & Investment

Corporation as a Director. He has been in law practice since 1967, counseling bank and corporate

clients in the areas of regulatory, business, corporate and trust law, and individuals in the areas

of family law and estate plans. In the course of his practice, he has served in various capacities in

companies upon invitation of clients. He holds degrees from the Ateneo de Manila University

(AB), from the Ateneo School of Law (LLB) and from the Harvard Law School (LLM).

Board of Directors

Henry T. Sy, Jr.

Director

Henry T. Sy, Jr., 57, Filipino, is presently Director of BDO. He is also the Vice Chairman of

the Board of Directors of SM Investments Corporation (SMIC), SM Development Corporation

(SMDC); and Vice Chairman & President of Highlands Prime, Inc., SM Commercial Properties

(formerly SM Land, Inc.); and Director of SM Prime Holdings, Inc. (SMPHI). He is likewise the

President of National Grid Corporation of the Philippines (NGCP). He graduated with a

management degree from De La Salle University. He also holds board positions in several

companies within the SM Group.

Josefina N. Tan

Director

Jimmy T. Tang

Independent Director

Josefina N. Tan, 66, Filipino, is presently Director of BDO and President of BDO Private

Bank, Inc. She is also Chairman of the Board of Miriam College and a Trustee in both

DevelopmentCenter for Finance and Laura Vicuña Foundation. She was a Director of Banco

de Oro Universal Bank from 2001 to August 2005. She was also Executive Vice President of the

former Far East Bank & Trust Co.; Director and President of FEB Leasing & Finance Corp.;

Executive Director and Trustee of FEB Foundation, Inc.; and Executive Vice President of FEB

Investments, Inc. until 2000. She was a director of Equitable PCI Bank, Inc. from September 2005

until its merger with the Bank in May 2007.

Jimmy T. Tang, 76, Filipino, has been an Independent Director of BDO since July 27, 2002.

He served as a regular Director of BDO from 1984 until his election as Independent Director.

He is the President and Chairman of the Board of the Avesco Group of Companies. He currently

serves as Honorary Adviser of the Federation of Electrical and Electronics Suppliers and

Manufacturers of the Philippines, Inc. (PESA) & PESA Foundation; and Honorary President of the

Federation of Filipino-Chinese Chambers of Commerce and Industry, Inc. (FFCCCII). Mr. Tang

was a former President of PESA and Chairman of the PESA Foundation. He holds a

Bachelor’s Degree in Electrical Engineering from the Mapua Institute of Technology and was

awarded the “Top Outstanding Mapuan for Entrepreneurship” in 1987.

18

Key Officers

Edmundo L. Tan

Corporate Secretary

Edmundo L. Tan, 65, is

Corporate Secretary and

is a director of BDO

Leasing and Finance, Inc.

Atty. Tan concurrently

holds directorships in

various corporations. Atty.

Tan is the Managing

Partner of Tan Acut Lopez

and Pison Law Offices

Pedro M. Florescio, 56, is

Executive Vice President

and Bank Treasurer. He

holds a Bachelor’s Degree

in Business Administration

from the University of the

East and had attended

numerous treasury

programs and trainings in

major financial centers. He

has extensive years of

experience in treasury

functions within and outside

the country.

Edel Mary D. Vegamora,

50, is Senior Vice President

and Head of Internal Audit

Division (Chief Internal

Auditor) of the Bank. She

graduated Magna Cum

Laude from the University

of the East with a Bachelor

of Science In Business

Administration, major in

Accountancy. She is a

Certified Public Accountant

and has earned the global

designation of Certified

Internal Auditor.

Victor S. Arboleda, 58, is

Senior Vice President and

Chief Compliance Officer of

the Bank. Mr. Arboleda, a

Certified Public Accountant,

has had more than 30

years of extensive

experience in internal audit

and bank operations. He

holds a Bachelor of

Science degree in

Commerce - Accounting

from the University of Sto.

Tomas and completed the

Executive Development

Program at the Asian

Institute of Management.

Pedro M. Florescio

Executive Vice-President

Treasurer

Edel Mary D. Vegamora

Senior Vice-President

Internal Auditor

Victor C. Arboleda

Senior Vice-President

Chief Compliance Officer

19

Key Officers

Walter C. Wassmer

Senior Executive Vice-President

Institutional Banking Head

Walter C. Wassmer, 54,

is Senior Executive Vice

President and Head of

Institutional Banking

Group. He holds a

Bachelor’s degree in

Commerce from De La

Salle University. He is

also a Director of BDO

Leasing and Finance, Inc.

and other firms.

Jaime C. Yu, 53, is Senior


and Head of Branch

Banking Group. He holds a

Bachelor of Arts degree in

Economics from De La

Salle University and is an

MBA graduate from the

Ateneo de Manila

University. He has

extensive experience in

commercial, corporate, and

investment banking from

various banks.

Ador A. Abrogena, 57, is


and Head of Trust and

Investments Group. He


in Chemical Engineering

from De La Salle University

and a Masters Degree in

Business Economics from

the University of Asia and

the Pacific.

Jaime C. Yu

Senior Executive Vice-President

Branch Banking Head

Ador A. Abrogenra


Trust and Investments Group

Rolando C. Tanchancor


Consumer Banking

Rolando C. Tanchanco,

49, is Executive Vice

President and Head for

Consumer Lending. He


in Business Economics

from the University of the

Philippines and acquired

his MBM at the Asian

Institute of Management.

He is currently a Director

of Equitable Card

Network, Inc.


I. BUSINESS FRANCHISE



21

2011 P & L

(P bn) 2011 2010 YoY %

Interest Income 50.5 49.9 1%

Interest Expense 16.7 15.8 6%

Net Interest Income 33.8 34.2 -1%

Non-Interest Income 20.9 17.8 17%

Fee Income 12.3 10.4 18%

Trading & FX 5.6 5.8 -4%

Others 3.0 1.6 90%

Gross Operating Income 54.7 52.0 5%

Operating Expenses 36.3 34.8 4%

Pre-Provision Op. Profit 18.4 17.2 7%

Provisions 6.1 6.7 -8%

Taxes 1.6 1.6 -0%

Net Income 10.5 8.8 19%

22

Key Growth Indicators

Gross Customer Loans Investment Securities

Fee-based IncomeDeposits

670

297

473

393

542

24%

15%20%

32%

15%

0

150

300

450

600

750

900

2007 2008 2009 2010 2011

(P bn)

-75%

-60%

-45%

-30%

-15%

0%

15%

30%

45%

Gross Loans % Growth

188

165

172

156

197

-4%

15%

10%

-5%-8%

140

150

160

170

180

190

200

210

2007 2008 2009 2010 2011

(P bn)

-55%

-45%

-35%

-25%

-15%

-5%

5%

15%

Investment Securities % Growth

859

443

670

502

602

-5%

43%

9%13%

10%

300

400

500

600

700

800

900

2007 2008 2009 2010 2011

(P bn)

-95%

-75%

-55%

-35%

-15%

5%

25%

45%

Total Deposits % Growth

10

9

1010

12

22%

-11%

12%9%

18%

0

2

3

5

6

8

9

11

12

14

15

2007 2008 2009 2010 2011

(P bn)

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

Fee-Based Income % Growth

23

Net Income, 2007- 2011

IntegrationReengineering/

Re-scaling of

Operations

10.5

8.8

6.06.5

2.2

0

2

4

6

8

10

2007 2008 2009 2010 2011

(P bn)

Global

Financial

Crisis

24

Capital Adequacy Ratio

9.0% 8.3%

10.0%

4.5%

4.1%

5.6%

10.0%9.9%

4.0%4.6%

0%

2%

4%

6%

8%

10%

12%

14%

16%

2007 2008 2009 2010 2011

Total CAR

Tier 2

Tier 1

14.5%

113.5%

0 112.4%

114.0%

115.6%

Note: CAR per Bangko Sentral ng Pilipinas series

Thank you.

www.bdo.com.ph

Documents

March 2012 - BDO Investor... · Investor Presentation March 2012. 2 Legal Disclaimer This presentation and the presentation materials distributed herewith include forward-looking