Slide 1: Investor Presentation BDO 1H23 Results
Investor Presentation BDO 1H23 Results July 2023 THIS PRESENTATION AND THE INFORMATION CONTAINED HEREIN AS WELL AS THE MATERIALS DISTRIBUTED HEREWITH ARE THE SOLE AND EXCLUSIVE PROPERTY OF BDO UNIBANK, INC. AND SHALL ONLY BE USED FOR THE PURPOSE INTENDED HEREIN.
Slide 2: Presentation Outline
Presentation Outline I. Overview II. Financial Highlights III. Ownership, Board and Management IV. Sustainability V. Awards and Citations 2 BDO Investor Presentation 1H23 Results
Slide 3: About BDO
About BDO BDO is a full-service universal bank which provides a wide range of corporate and retail banking services. Our services include traditional loan and deposit products, as well as treasury, trust banking, investment banking, private banking, rural banking and microfinance, cash managemen
Slide 4: Milestones
Milestones Expansion through organic growth and M&As Acquired RB Pandi P4.1 TN banking business P3.6 TN Acquired One Network Bank (rebranded as P3.4 TN BDO Network Bank) P3.2 TN Acquired Rural P3.0 TN Merged with Bank of San Equitable PCI Bank. Juan’s banking P2.7 TN Acquired Amex business P2.3 TN A
Slide 5: Full Service Bank
Full Service Bank • Complete range of financial products and services Corporate & Leasing & Consumer Rural Banking & Branch Treasury Institutional Finance Banking Microfinance Banking Services Banking Corporate and middle Direct lease, sale and Auto loans Salary loans Deposit & related F
Slide 6: Wide and Extensive Coverage in Key Areas
Wide and Extensive Coverage in Key Areas North America Europe Middle East Asia Philippines 2 Remittance 1 Remittance Office (UK) Representative 2 Full-service Branches (HK, SG) 1,690Branches & Offices Offices (USA, 2 Representative Offices Offices (UAE) 5 Remittance Offices (HK, Japan, 4,600+ATMs Ca
Slide 7: Business Franchise
Business Franchise Market-leading positions in almost all business lines #1 #1 #1 #1 #1 Customer Deposits Assets Under Remittances Credit Cards1 Loans Management Major Player in #1 #1 #1 #1 Leading Trade Cash Investment Private Life Insurance Services Management3 Banking4 Banking Insurance5 Brokerag
Slide 8: Industry Ranking
Industry Ranking No. 1 among Philippine banks Total Assets Gross Customer Loans Customer Deposits Assets Under Management (PHP bn) (PHP bn) (PHP bn) (PHP bn) Market Share 18% Market Share 23% Market Share 19% Market Share 38% BDO 4,015 BDO 2,570 BDO 3,221 BDO 1,857 LBP 3,134 BPI 1,708 LBP 2,793 BPI
Slide 9: Organizational Structure
Organizational Structure • With equity investments in allied and non-allied enterprises BDO Unibank, Inc. BANKING / FINANCE REMITTANCES INSURANCE PROPERTY OTHERS BDO Private BDO Remit BDO Insurance SM Keppel Dominion Holdings, Bank, Inc. (USA), Inc. Brokers, Inc. Land, Inc.* Inc. (Formerly BLFI) 100
Slide 10: Credit Ratings
Credit Ratings Moody’s Fitch 31-March-2023 *30-May-2023 Outlook Stable Stable Bank Deposits/IDR (Foreign/Local) Long Term Baa2 BBB- Long Term xgs BB+(xgs) Short Term P-2 F3 Short Term xgs B(xgs) Senior Unsecured debt (Foreign) Baa2 Other Short Term (P)P-2 BCA/Viability Rating Baseline Credit Assessm
Slide 11: Trading Fact Sheet
Trading Fact Sheet Stock Details Type Common Shares Stock Ticker BDO ISIN PHY077751022 Exchange Philippine Stock Exchange Par Value P10.00 Outstanding No. of Shares* 5,266,947,951 Foreign Ownership Up to 40% American Depositary Receipts (ADR) Program Details Type Sponsored Level 1 ADR ADR Ticker BDO
Slide 12: Presentation Outline
Presentation Outline I. Overview II. Financial Highlights III. Ownership, Board and Management IV. Sustainability V. Awards and Citations 12 BDO Investor Presentation 1H23 Results
Slide 13: 1H23 P&L BDO Conso
1H23 P&L BDO Conso (PHP bn) 1H23 1H22 YoY% Interest Income 112.9 76.3 48% Interest Expense 23.4 6.9 242% Net Interest Income 89.5 64.4 29% Non-interest Income 38.2 34.3 11% Fee Income 23.1 19.9 16% Insurance Premiums 9.4 9.9 -5% Trading & FX 3.3 2.3 40% Others 2.4 2.2 12% Gross Operating Income 127.
Slide 14: Balance Sheet
Balance Sheet BDO Conso (PHP bn) 2Q23 2Q22 YoY% Resources Liquid Assets 578.6 614.4 -6% Investment Securities 852.2 673.0 27% Gross Customer Loans 2,665.3 2,458.4 8% Investment Properties 21.1 20.0 5% Other Assets 41.1 35.2 16% Total Resources 4,158.3 3,801.0 9% Liabilities Deposits 3,295.8 2,954.8
Slide 15: Capital & Profitability
Capital & Profitability Net Income & ROE (PHP bn) 70 15.10% 12.75% 13.02% 15.0% 60 10.71% 10.51% ROE 7.55% 10.0% 50 57.1 Net Income 40 44.2 5.0% 42.8 30 35.2 32.7 0.0% 20 28.2 -5.0% 10 0 -10.0% 2018 2019 2020 2021 2022 1H23 Industry* ROE 9.35 10.70 6.61 9.08 11.86 12.65** *U/KBs **As of 1Q23 Capital
Slide 16: Income Statement
Income Statement (PHP bn) 2018* 2019* 2020 2021 2022 1H23 Interest Income 129.0 160.6 157.0 144.9 169.1 112.9 Interest Expense 30.7 40.7 23.3 13.5 19.8 23.4 Net Interest Income 98.3 119.9 133.7 131.3 149.2 89.5 Non-interest Income 50.4 60.1 55.2 61.4 71.5 38.2 Fee Income 30.7 35.3 28.6 34.8 43.1 23.
Slide 17: Balance Sheet
Balance Sheet (PHP bn) 2018 2019 2020 2021 2022 2Q23 Resources Liquid Assets 534.4 450.7 532.2 551.9 669.5 578.6 Investment Securities 385.2 435.9 508.8 616.3 722.8 852.2 Gross Customer Loans 2,020.1 2,208.1 2,263.7 2,400.2 2,613.8 2,665.3 Investment Properties 19.8 16.9 15.9 18.8 21.2 21.1 Other As
Slide 18: Financial Performance Indicators
Financial Performance Indicators 2018 2019 2020 2021 2022 1H23 Profitability Return on Ave. Common Equity 10.71% 12.75% 7.55% 10.51% 13.02% 15.10% Return on Average Assets 1.1% 1.4% 0.9% 1.2% 1.5% 1.7% Margins and Liquidity Net Interest Margin (NIM) 3.6% 4.2% 4.4% 4.0% 4.1% 4.7% Loan to Deposit Rati
Slide 19: Presentation Outline
Presentation Outline I. Overview II. Financial Highlights III. Ownership, Board and Management IV. Sustainability V. Awards and Citations 19 BDO Investor Presentation 1H23 Results
Slide 20: Shareholder Structure
Shareholder Structure • Majority owned by the SM Group As of 30 June 2023 Percentage Name Nationality Shareholdings of Ownership SM Investments Corp. Filipino 2,101,116,778 39.90% PCD Nominee Foreign 1,403,303,298 26.65% PCD Nominee Filipino 1,168,853,885 22.20% Multi-Realty Development Corporation
Slide 21: The SM Group
The SM Group Harnessing synergies with the country’s largest conglomerate Access to SM’s customer network Largest local retail chain with 3,590 stores nationwide (72 The SM Store, 1,633 specialty • Over 18,000 PHL tenants Retail retail outlets, 63 SM Supermarkets, 54 SM • More than 9,500 suppliers H
Slide 22: Board of Directors
Board of Directors • One of the strongest Board of Directors in the industry with extensive banking and finance, legal and business backgrounds • Independent directors comprise 5 out of the 10-member Board Eight directors have an average of 38 years of banking Experienced experience, including a for
Slide 23: Board of Directors
Board of Directors • With broad business and professional experience WALTER C. WASSMER VIPUL BHAGAT TERESITA T. SY NON-EXECUTIVE DIRECTOR INDEPENDENT DIRECTOR CHAIRPERSON First appointed to the Board in 2022 First appointed to the Board in 1977 First appointed to the Board in 2022 Independen
Slide 24: Senior Management Team
Senior Management Team • With extensive professional banking expertise NESTOR V. TAN President and CEO With BDO since 1997 Over 40 years of banking experience INTERMEDIATION SERVICES MA. CORAZON A. MALLILLIN MARIA THERESA L. TAN CECILIA LUZ L. TAN RAFAEL G. AYUSTE JR. General Manager of BDO Insu
Slide 25: Senior Management Team, continued
Senior Management Team, continued • With extensive professional banking expertise NESTOR V. TAN President and CEO With BDO since 1997 Over 40 years of banking experience CORPORATE SUPPORT LUCY CO DY JOSEPH ALBERT L. GOTUACO EVELYN C. SALAGUBANG Head of Comptrollership Head of Central Operations
Slide 26: Presentation Outline
Presentation Outline I. Overview II. Financial Highlights III. Ownership, Board and Management IV. Sustainability V. Awards and Citations 26 BDO Investor Presentation 1H23 Results
Slide 27: 2022 Sustainability Report
2022 Sustainability Report Fifth Sustainability Report BDO Sustainability outlining the Bank’s ESG performance Philosophy We seek to achieve strategic resilience by incorporating sustainability in the way we do business. We aim to embed sustainability principles when making decisions, assessing
Slide 28: Translating Goals Into Actions
Translating Goals Into Actions United Nations Sustainable Development Goals Product Sustainability Teachers Loan • Loan from PHP10k to PHP1M • No co-maker required Kabalikat Plan • Free credit life insurance Personal accident insurance for only Kabuhayan Loan PHP500 • Zero Collateral • Affordable lo
Slide 29: Translating Goals Into Actions
Translating Goals Into Actions United Nations Sustainable Development Goals • 39,323 employees nationwide and abroad; 75% Human Capital females in the workforce • 58% female representation in senior Sustainability management • 45% employees covered by Collective Bargaining Agreement 761,761 families
Slide 30: Translating Goals Into Actions
Translating Goals Into Actions United Nations Sustainable Development Goals Sustainability Contribution to National Economic Goals Biodiesel Bioethanol Biomass Geothermal Hydro Solar Wind 60 ML/Y 44.12 ML/Y 164 MW 1,179 MW 433 MW 380 MW 96 MW Installed Capacity 30 BDO Investor Presentation 1H23 Resu
Slide 31: Translating Goals Into Actions
Translating Goals Into Actions The SEF program financed renewable energy, energy efficiency and green building projects PHP781 bn 58 71,142,786 Total sustainable Renewable Energy Equivalent tree finance projects projects funded to date seedlings grown over funded to date 10 years 2,252 MW 913,491 4,
Slide 32: Sustainable Finance Leader since 2010
Sustainable Finance Leader since 2010 The first local bank to establish (in 2010) the risk-based Social and Environmental Management System (SEMS) policy in the country in partnership with the IFC Green Bond (USD150 million) in 2018: maiden issuance in the Philippines and East Asia Pacific ASEAN Sus
Slide 33: Sustainable Finance Framework
Sustainable Finance Framework Environmental Project Category Objectives Use of Proceeds • Renewable Energy • Green Buildings The net proceeds of Green/Sustainability Bonds • Clean Transportation • Achieve strategic resilience by incorporating will finance or refinance eight (8) • Resource Efficiency
Slide 34: Certified by Sustainalytics
Certified by Sustainalytics Green Bond Framework: “BDO’s Sustainable Finance Framework is robust, transparent and in alignment with the four core components of the Green Bond Principles (2021), Social Bond Principles (2021), Green Loan Principles (2021) and the ASEAN Sustainability Bond Standards (2
Slide 35: Energy Transition Finance Statement
Energy Transition Finance Statement 35 BDO Investor Presentation 1H23 Results
Slide 36: Environmental & Social Risk Management System (ESRMS)
Environmental & Social Risk Management System (ESRMS) BDO has built on the SEMS Policy and developed it into a comprehensive ESRMS that will help identify, assess, and manage E&S risks associated with its lending, investments, and administrative operations Fully incorporates the Bank’s: key focus
Slide 37: Environmental Responsibility and Social Equity
Environmental Responsibility and Social Equity BDO will not finance any activity engaged in the following: Any product or activity Gambling, casinos, Harmful or exploitative forms of deemed illegal under host and equivalent enterprises forced labor/harmful child labor country laws Commercial logging
Slide 38: Presentation Outline
Presentation Outline I. Overview II. Financial Highlights III. Ownership, Board and Management IV. Sustainability V. Awards and Citations 38 BDO Investor Presentation 1H23 Results
Slide 39: Awards & Recognition
Awards & Recognition Best Bank in the Philippines Alpha Southeast Asia FinanceAsia (2010-2016, 2018, 2020-2023) (2010-2021) AsiaMoney Forbes (2020) (2021) The Asian Banker Global Finance (2022) (2014-2017, 2019-2022) The Asset International Banker (2011, 2013-2021) (2020) The Banker Reader’s Digest
Slide 40: Awards & Recognition: Sustainability and ESG
Awards & Recognition Sustainability and ESG ASEAN Corporate Governance Scorecard (ACGS) Four Golden Arrows awardee (2022) Corporate Governance Asia The Best of Asia awardee, Asian ESG Award (2005-2019, 2021) Asia Corporate Excellence & Sustainability Asian Excellence awardee (2011-2022) Awards (ACES
Slide 41: Awards & Recognition: Sustainability and ESG (con't)
Awards & Recognition Sustainability and ESG (con’t) International Association of Business Global Good Governance Awards (3G) Communicators (IABC) Philippines 3G Championship Award in Transparency (2021) Excellence Award for Communication Skills - BDO 2020 3G Championship Award in Service Excellence
Slide 42: Legal Disclaimer
Legal Disclaimer This presentation and the information contained herein as well as the materials distributed herewith ("Presentation") are the sole and exclusive property of BDO Unibank, Inc. (“BDO”) and shall only be used for the purpose intended herein. None of the information contained in this Pr
Slide 43: Thank you.
Thank you. www.bdo.com.ph 43 BDO Investor Presentation 1H23 Results