Slide 1: Investors Presentation Financial Performance FY2019
CHINA BANKING CORPORATION Investors Presentation Financial Performance FY2019
Slide 2: China Bank Profile: Who we are
China Bank Profile Who we are Company Identifiers (Bloomberg/Reuters) CHIB.PM/CHIB.PS Long history as one of the oldest privately owned banks, established in 1920 Stock Price as of Dec 31, 2019 25.05 Publicly-listed since 1927 on the Manila Stock Exchange Strong presence in the entrepreneur, m
Slide 3: China Bank Profile: Where we are
China Bank Profile Where we are ASSETS NET LOANS DEPOSITS EQUITY 962 Bn 569 Bn 7 7 5 Bn 96 Bn #5 #5 #5 #7 Ranking among privately-owned domestic banks as of December 31, 2019 2
Slide 4: China Bank Profile: Major Milestones
China Bank Profile Major Milestones Acquired Manila Bank with 75 branch licenses Investment Banking and renamed to China Bank Savings Subsidiary Spin-off Infused additional PHP500M capital to Incorporated Acquired CBS 1920 1927 2007 2012 2013 2014 2015 2016 2018 Increased stake in JV Infused additio
Slide 5: China Bank Profile: Full Service Platform
China Bank Profile Full Service Platform 1 2 3 Savings Bank & Other Relationship Banking Financial Markets Segment Business Units Lending Business Segment Treasury Retail Banking China Bank Savings Business Segment - SME - Consumer - Deposits - Housing/Auto Institutional Banking Wealth Management -
Slide 6: Key Investment Highlights
Key Investment Highlights 1 Strong Brand Franchise and Solid Track Record 2 Compelling Growth Story 3 Strong Support from Shareholders and Synergies with the SM Group 4 Experienced and Competent Management Team 5 Best Practice in Governance 5
Slide 7: Strong Brand Franchise and Solid Track Record
1 Strong Brand Franchise and Solid Track Record Loyal and highly valuable customer base Strong presence in entrepreneur segments Multi-generational relationships Sustainable and profitable Agile and entrepreneurial mindset niche client relationships Rapid Network Expansion since 2007 Very Good Credi
Slide 8: Compelling Growth Story: Solid Balance Sheet
2 Compelling Growth Story Solid Balance Sheet with Sustainable Growth Supported by Diversified Funding Base Total Assets (PHP in Bn) Funding Profile as of Dec-2019(%) 1,200 +11% Retail Bond 962 3% Capital 1,000 10% 866 800 751 CASA 34% FDCU 633 Deposits 13% 600 527 471 Bills payable 400 4% 200 Green
Slide 9: Compelling Growth Story: Strong Retail Base
2 Compelling Growth Story Strong Retail Base Improving Deposits per Branch Despite the Expansion Deposits (PHP in Bn) Deposits per branch (PHP in Bn) 900 +7% 1.4 800 775 1.23 722 1.2 1.16 700 126 635 1.07 0.2 122 1.00 0.2 600 1.0 542 109 0.2 0.85 0.85 0.2 500 83 439 328 0.8 0.1 281 0.2 0.5 399 0.5 2
Slide 10: Compelling Growth Story: Healthy Loan Growth
2 Compelling Growth Story Healthy Loan Growth More Room to Grow in the Consumer Segment Gross Loans (PHP in Bn) Consumer Loans Breakdown as of Dec-2019 2014-2019 CAGR 700 20% +13% 13% Personal 600 578 loans 10% 513 +23% 107 500 YoY 456 87 394 74 Auto 400 22% 60 317 298 300 48 43 471 +11% 426 Housing
Slide 11: Compelling Growth Story: Sustained Profitability and Dividends
2 Compelling Growth Story Sustained Profitability Enable us to increase Dividend Payout and Yield +24% 12.0 3.5 11.0 3.3 10.4 10.0 10.0 3.0 9.9 9.6 9.5 2.7 2.6 2.5 8.0 2.4 2.3 2.3 2.0 6.0 10.1 1.5 4.0 8.1 2.4 7.5 2.2 6.5 1.0 2.0 1.9 5.6 1.6 1.7 5.1 2.0 0.5 - - 2014 2015 2016 2017 2018 2019 2014 2015
Slide 12: Compelling Growth Story: Sustainable Revenue Growth
2 Compelling Growth Story Sustainable Revenue Growth Well-diversified Revenue Stream Total Operating Income (PHP in Bn) Non-interest Income Breakdown as of Dec-2019 Others 40.0 23% Lending business 27% +21% 34.5 35.0 30.0 28.6 8.4 +49% Retail banking 26% 5.7 25.0 Financial markets 24% 20.0 Net inter
Slide 13: Compelling Growth Story: Opportunity to Reduce Costs
2 Compelling Growth Story Opportunity to Reduce Costs And Further Drive Efficiency Operating Expenses ex provisions (PHP in Bn) Cost-to-income (%) 25.0 70 +13% 20.3 20.0 18.1 65 64 64 +20% 63 63 63 8.0 62 62 62 62 15.0 6.7 61 60 60 59 1.8 -23% 10.0 2.3 3.9 +33% 2.9 55 5.0 6.1 6.6 +8% 50 - 2014 2015
Slide 14: Compelling Growth Story: Margins to Improve
2 Compelling Growth Story Margins to Improve as Interest Rates and RRR Go Down Q-on-Q Performance Showing Recovery Cumulative (In Percentage) Quarter-on-Quarter (In Percentage) 7.0 7.0 6.4 6.4 6.3 6.2 6.2 6.2 6.2 6.1 5.9 6.0 5.5 6.0 5.6 5.3 5.3 5.1 5.0 5.0 5.0 5.0 4.0 4.0 3.7 3.7 3.8 3.6 3.6 3.6 3.5
Slide 15: Strong Support from Shareholders and Synergies with the SM Group
Strong Support from Shareholders and Synergies with the SM 3 Group China Bank benefits from being part of one of the largest and most diversified conglomerates in the Philippines Snapshot of SM Group Business Lines Current Shareholdings Others SM Investment 23% 27% SM Group Sysmart Corp 15% 38% Reta
Slide 16: Highly Regarded Management Team
Highly Regarded Management Team with Average of More than 30 4 Years of Experience Hans T. Sy Gilbert U. Dee William C. Whang Chairman of the Board Vice Chairman of the Board Director and President Romeo D. Uyan, Jr. Rosemarie C. Gan Patrick D. Cheng Executive Vice President and Chief Executive Vice
Slide 17: Best Practice in Governance
5 Best Practice in Governance Track record of excellence in Corporate Governance Golden Arrow Recognition Ceremony 2019 4-arrow recognition with score range of 110-119 in ACGS 2nd ASEAN Corporate Governance Awards Top 11 to 30 among the top 50 PLCs in ASEAN PSE Bell Awards for Corporate Governance
Slide 18: We have a strategic plan in place to deliver on our targets
We have a strategic plan in place to deliver on our targets Underpinned by four (4) wildly important goals (WIGS) • Build low cost deposits Growth of revenues and • Launch new deposit products and services suited to the needs of the retail and other emerging sectors size of business • Recalibrate br
Slide 19: Thank you
CHINABANK Since 1920 Thank you
Slide 20: Governance – Adapting ESG Framework
Governance – Adapting ESG Framework
Slide 21: No. 1 in Domestic Debt Capital Market
No. 1 in Domestic Debt Capital Market Atlantic Gulf and Pacific China Bank Corporation Autotax Payment Facility Apo Agua Infrastructure Del Monte Pacific US$200 Company Php6 Billion P30 Billion Fixed Rate Php9 Billion financing Million Preferred Shares term loan Retail Bond Most Innovative Public Be
Slide 22: Financial Highlights – Balance Sheet
Financial Highlights – Balance Sheet In Php Millions 2019 2018 Growth (%) Liquid Assets 143,951 138,983 4 Investments 212,836 190,235 12 Loans-net 568,919 505,805 12 Other Assets 36,519 31,049 18 Total Assets 962,226 866,072 11 Deposit Liabilities 775,428 722,123 7 Bills Payable 33,381 39,827 (16) B
Slide 23: Financial Highlights – Income Statements
Financial Highlights – Income Statements In Php Millions 2019 2018 Growth (%) Net Interest Income 26,051 22,926 14 Non-interest Income 8,431 5,658 49 Total Operating Income 34,482 28,584 21 Operating Expenses ex Provisions 20,324 18,056 13 Provisions 2,570 141 n.m Total Expenses 22,894 18,197 26 Inc