Bank Of The Philippine Islands · PSE:BPI
Bank Of The Philippine Islands — Q1 2022 Earnings Presentation
28 slides from Bank Of The Philippine Islands's earnings presentation, May 2022
Slide 1: BPI Investor Presentation 1Q 2022
BPI Investor Presentation 1Q 2022 THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS.
Slide 2: Macroeconomic Updates
Macroeconomic Updates 2 THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS.
Slide 3: Economic Highlights
Economic Highlights • Global growth trimmed to 3.6% this year (IMF) as the extended Ukraine-Russia conflict presents Global a meaningful downside risk to growth Growth • Inflation continues to surge driven by higher commodity prices, supply chain disruptions and increasing demand • Central banks are
Slide 4: Performance Highlights
Performance Highlights 4 THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS.
Slide 5: Performance Highlights
Performance Highlights • Another quarter of strong growth & profitability while maintaining the strength of our balance sheet Profitability • 1Q21 Net Income at PhP8 B, up 60% YoY; ROE at 11% • Consistently superior asset quality compared to the industry Asset Quality • NPL ratio at 2.38%; NPL Cover
Slide 6: Net Income and ROE
Net Income and ROE • Record quarter income, up 60% YoY • Continued strong performance with double digit 1Q22 ROE at 11%, up 381bps YoY • Strong start to the year underpinned by loan growth, higher NIM and improvement in asset quality, and normalized tax expense Amounts in P bn Net Income Return on E
Slide 7: Revenues
Revenues • Revenue up 4% YoY • Net interest income up 13% YoY, with each quarter showing gains • Trading income declined, coming off a high base; fee income growth tempered by mobility restrictions Amounts in P bn Total Revenues Non-Interest Income +4.3% YoY -1.6% QoQ -14.5% YoY 25.8 25.4 24.3 23.8
Slide 8: Loan Book and NIM
Loan Book and NIM • Loans marginally lower QoQ; up 7% YoY • NIM above pre-pandemic level of 3.35%; improvement is a continuation of the increase in 4Q21 • NIM expansion largely from lower cost of funds due to high market liquidity, improvement in deposit mix, and maturities of borrowings Amounts in
Slide 9: Loan Book per Segment
Loan Book per Segment Total Gross Loans Corporate SME 1,529 1,516 ₱1,516B ₱1,145B 1,145 1,154 ₱56B 58.4 -0.8% vs. Last Quarter 1,412 1,063 55.7 -0.8% vs. Last Quarter -4.5% vs. Last Quarter +7.3% vs. Last Year +7.7% vs. Last Year +3.6% vs. Last Year 53.8 JAN OCT MAR MAY AUG DEC20 DEC21 FEB APR SEP N
Slide 10: Funding
Funding • Deposits declined QoQ, following three quarters of gains; up 13% YoY • Improvement in the deposit mix QoQ resulted in 400bps increase in CASA ratio to 81% • Bond maturities were partially refinanced at significantly lower rate, improving funding cost Amounts in P bn Deposits Borrowings 82.
Slide 11: Fee Income
Fee Income • Strong volumes in our largest businesses • The Covid-19 surge in early 2022 and subsequent lockdowns affected fee earnings potential • Record AUM level and income, driven by strong client flows offsetting negative market valuation Credit Card Billings Assets Under Management Digital Fee
Slide 12: Operating Expenses
Operating Expenses • Expenses moderately up YoY and down 12% sequentially • Ongoing investments in technology and marketing should accelerate cost in the coming quarters • Manpower and premises-related expenses contained, helped by efficiency improvements from digitalization Amounts in P bn Opex Dec
Slide 13: Provisions & Asset Quality
Provisions & Asset Quality Provisions & Credit Cost NPL Level 2021 2022 Sustained strong metrics in asset quality, in ₱ bn, bps marked by three consecutive quarters of 104 -5.5% vs. Last Quarter ₱35.9B improvement 93 -7.6% vs. Last Year Credit cost, driven primarily by asset 68 41.3 quality impr
Slide 14: Capital Position
Capital Position • Increase in equity from capital accretion and maturity of borrowings resulted in lower leverage ratio • Strong capital accretion offset the growth in risk-weighted assets resulting in higher CET1 and CAR • Capital position will stay comfortably above regulatory requirements notwit
Slide 15: Summary
Summary 1 Profitability : Positive income trend backed by continued recovery in loans and increase in NIM; underlying strength of fee income from expanding customer base and increase in digital customers 2 Balance Sheet : Robust capital position; diversified and highly-liquid balance sheet 3 Asset Q
Slide 16: Reinventing banking for a more inclusive and sustainable tomorrow
Reinventing banking for a more inclusive and sustainable tomorrow For your comments and queries contact us via: investorrelations@bpi.com.ph Tel: (632) 8246 5862 https://www.bpi.com.ph/ Scan the QR code to download the 2021 Integrated Report or visit https://www.bpi.com.ph/about/investor - relations
Slide 17: Important Information
Important Information DISCLAIMER: This presentation has been prepared by the Bank of the Philippine Islands (“BPI” or You may also reach out to BPI's complaints the “Company”) solely for informational purposes. All contents hereof are the sole and exclusive handling unit for other inquiries and conc
Slide 18: Appendices
Appendices 18 THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS.
Slide 19: Macroeconomic & Industry Indicators
Macroeconomic & Industry Indicators Indicators, as of end-of-period 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 in %, except USD/PHP GDP Growth (YoY) -8.2 -3.8 12.1 7.0 7.8 8.3 Current Account (% to GDP) 3.9 -0.3 -1.4 -1.0 -3.5 Inflation 3.5 4.5 4.1 4.8 3.6 4.0 1 M3 Growth (YoY) 9.6 8.5 6.5 8.3
Slide 20: Historical Milestones of BPI
Historical Milestones of BPI Strategic Partnerships formed over the years, actively entering into diverse • Founded in 1851, as Banco Español Filipino de Isabel II, business joint ventures in the last decade by Catholic charities Year Firm Description • Antonio de Ayala inaugural member of board 197
Slide 21: BPI at a glance
BPI at a glance The first bank in the Philippines and Southeast Asia, and the longest tenured bank with 170 years of continuous operating history, with highly reputable shareholders, the largest of which include the Ayala Group, the Roman Catholic Church and GIC Award winning, universal banking
Slide 22: Operating Franchise
Operating Franchise BPI has a leading deposit franchise and expansive reach through its network of traditional channels and unparalleled digital banking platform One of the largest branch & ATM Main Operating Business BPI’s digital banking platform is networks (as of Mar 2022) Segments Amongst the b
Slide 23: Financial Highlights
Financial Highlights Mar 2021 Dec 2021 Mar 2022 r YoY r QoQ 1Q 2021 4Q 2021 1Q 2022 r QoQ r YoY Balance Sheet (in P bn) Profitability (in P bn) Assets 2,164.4 2,421.9 2,378.2 9.9% -1.8% Net Interest Income 16.9 18.4 19.0 3.1% 12.7% Net Loans 1,364.7 1,476.5 1,462.1 7.1% -1.0% Non-Interest Income 7.4
Slide 24: Financial Highlights (in USD)
Financial Highlights (in USD) Mar 2021 Dec 2021 Mar 2022 r YoY r QoQ 1Q 2021 4Q 2021 1Q 2022 r QoQ r YoY Balance Sheet (in USD bn) Profitability (in USD mn) Assets 44.7 47.7 45.8 2.5% -4.0% Net Interest Income 347.8 362.7 365.5 0.8% 5.1% Net Loans 28.2 29.1 28.1 -0.1% -3.2% Non-Interest Income 153.7
Slide 25: BPI Executive Management
BPI Executive Management As of January 1, 2022 Ramon L. Jocson Maria Theresa D. Marcial Marie Josephine M. Ocampo Dino R. Gasmen Marita Socorro D. Gayares Executive Vice President Executive Vice President Executive Vice President Senior Vice President Senior Vice President Chief Operating Officer Ch
Slide 26: BPI Sustainability Agenda: ESG + E2
BPI Sustainability Agenda BPI aims to be an inclusive, innovative, and trusted leader in Responsible Banking BPI SUSTAINABILITY STRATEGY BPI’S UNIQUE FORMULA ESG + E 2 Environment, Social, Governance and Economic goals and standards are incorporated in BPI’s core strategy 26 THIS DOCUMENT IS THE PRO
Slide 27: BPI Sustainability Agenda
BPI Sustainability Agenda BPI aims to be an inclusive, innovative, and trusted leader in Responsible Banking Becoming the most financially Sustainability commitments inclusive and sustainable bank Embedding ESG in our culture and innovations Over 221,000 SEME’s served Board-approval and implementati
Slide 28: Awards and Recognitions
Awards and Recognitions Institutional BPI Foundation Bancassurance Best Bank Best Life Insurance Company Best Bank in the Phils.; Best IR Program: For Corporate Social Most Distinguished in the Phils. 5th in All-Asia WWF Climate Financial Leadership in Responsibility in PH Corporate Partner BPI-Phil
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