Bdo Unibank, Inc. · PSE:BDO
Bdo Unibank — Q2 2018 Earnings Presentation
39 slides from Bdo Unibank's earnings presentation, September 2018
Slide 1: 2Q18 Investor Presentation
September 2018 2Q18 Investor Presentation
Slide 2: Presentation Outline
Presentation Outline I. Overview II. Financial Highlights III. Ownership, Board and Management IV. Environmental, Social and Governance V. Awards and Citations 2
Slide 3: About BDO
About BDO • The Philippines’ largest bank with total assets of P2.9 Tn (USD53.8 Bn). • A full-service universal bank with one of the widest distribution networks consisting of 1,231 operating branches and over 4,000 ATMs nationwide. • Part of the SM Group, one of the country’s largest conglomerates.
Slide 4: Milestones
Milestones • Expansion through organic growth and M&As Joint Ventures with Nomura Securities, and Mitsubishi Motors Phils./Sojitz/JACCS; Acquired exclusive franchise of Diners Club Int’l and full control of Generali Pilipinas Life (renamed as BDO Life Assurance) P2.7 TN Acquired Rural Bank of San Ju
Slide 5: Market Reach
Market Reach • Wide and extensive coverage in key areas North Europe - 10 America - 3 10 Remittance Offices Remittance Offices Asia - 11 1 Full-service Branch 6 Remittance Offices 4 Representative Offices Middle East - 1 Representative Office Philippines - 1,231 Branches BDO ONB Total 25 Internation
Slide 6: Business Franchise
Business Franchise • Market-leading positions in almost all business lines #1 #1 #1 #1 #1 Customer Assets Under Credit Deposits Remittances Loans Management Cards1 Leading Trade Major Player in Services Provider2 Cash Management3 #1 #1 #1 #2 Investment Private Rural #1 Insurance Leasing & Banking4 B
Slide 7: Industry Ranking
Industry Ranking • No. 1 among Philippine banks Total Assets Gross Customer Loans (in PHP billions) (in PHP billions) 2,846 1,903 BDO Market Share – 19% BDO Market Share – 22% 2,190 1,895 1,324 1,239 1,706 872 682 766 721 545 461 622 620 586 379 360 302 233 MBT BPI LBP PNB CHIB SECB UBP DBP RCBC MBT
Slide 8: Organizational Structure
Organizational Structure • With equity investments in allied and non-allied enterprises BDO Unibank, Inc. BANKING / FINANCE REMITTANCES INSURANCE PROPERTY OTHERS BDO Private Bank, MMPC Auto BDO Remit (USA), BDO Insurance SM Keppel Land, Inc. NLEX Corp. (formerly Inc. 100% Financial Inc. 100% Brokers
Slide 9: The Banker Top 1000 World Banks – Tier 1 Capital 2017
The Banker Top 1000 World Banks – Tier 1 Capital 2017 Rank Origin Bank USD Million 231 Bank Gospodarstwa Krajowego 5,421 232 Taipei Fubon Bank 5,419 233 Iyo Bank 5,403 234 Mashreqbank 5,391 235 BDO Unibank 5,344 236 E. Sun Commercial Bank 5,289 237 Yes Bank 5,203 238 Bank Nederlandse Gemeenten 5,140
Slide 10: The Banker Top Philippine Banks – Tier 1 Capital 2017
The Banker Top Philippine Banks – Tier 1 Capital 2017 Rank Bank USD Million 0 1000 2000 3000 4000 5000 6000 1 5,344 2 MBT 3,611 BPI 3,325 3 4 SECB 1,940 5 PNB 1,782 6 CHIB 1,415 7 RCBC 1,088 8 UBP 1,014 Note: Only private banks are included in the 2017 individual country rankings list Acronyms: BDO
Slide 11: Credit Ratings
Credit Ratings Capital Moody’s Fitch Intelligence 09-Jul-2018 04-Apr-2018 23-Aug-2018 Foreign Currency Bank Deposits/Issuer/Debt Rating (IDR) Long Term Baa2 BBB- BBB Short Term P-2 F3 A3 Outlook Stable Stable Stable Senior Unsecured debt Long Term Baa2 BBB- Short Term P-2 Outlook Stable BCA/Viabilit
Slide 12: 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* 4,372,711,564 Foreign Ownership Up to 40% American Depositary Receipts (ADR) Program Details Type Sponsored Level 1 ADR ADR Ticker BDO
Slide 13: Presentation Outline
Presentation Outline I. Overview II. Financial Highlights III. Ownership, Board and Management IV. Environmental, Social and Governance V. Awards and Citations 13
Slide 14: 1H18 P&L
1H18 P&L BDO Conso BDO ex-ONB & BDO Life (in PHP billion) 1H18 1H17 YoY% 1H18 1H17 YoY% Interest Income 59.1 47.0 26% 57.7 45.8 26% Loans & Other Receivables 52.6 41.3 27% 51.8 40.5 28% Interest Expense 13.1 8.4 56% 13.0 8.2 58% Net Interest Income 46.0 38.6 19% 44.8 37.6 19% Non-interest Income 22.
Slide 15: 2Q18 Balance Sheet
2Q18 Balance Sheet BDO Conso (in PHP billion) 2Q18 2Q17 YoY% Resources Reserve Assets 538.1 483.9 11% Investment Securities 361.6 327.8 10% Gross Customer Loans 1,914.3 1,600.3 20% Investment Properties 18.7 15.5 20% Other Assets 44.5 43.2 3% Total Resources 2,877.2 2,470.7 16% Liabilities Deposits
Slide 16: BDO Loan Growth vs. Industry
BDO Loan Growth vs. Industry 25% 20% 19% 19% 20% BDO 20% 16% 17% 17% 20% 18% 19% a Industry 15% 16% 15% 16% 14% 10% 5% 0% 2012 2013 2014 2015 2016 2017 2Q18 aUKB, based on loans net of RRPs BDO Loan Growth vs. Interest Income Growth 30% 27% Growth in Interest 25% income from 22% 20% 20% Loans Only 2
Slide 17: Capital Adequacy Ratio; Net Income & ROE
Capital Adequacy Ratio CAR Min. w/ BDO 2Q18a BSP DSIB a Per SOC, BSP Net Income & ROE (in P bn) 12.4% 12.0% 14.3% 13.6% 12.7% 10.2% 8.8% 35 ROCE 0.0% 30 28.1 25.0 26.2 -100.0% 25 22.6 22.8 20 -200.0% 14.5 15 13.1 -300.0% 10 13.3 -400.0% 5 (1H17) 0 -500.0% 2012 2013 2014 2015 2016 2017 1H18 b Industr
Slide 18: Income Statement
Income Statement (in PHP billion) 2012 2013 2014 2015 2016 2017 1H18 Interest Income 54.0 56.6 63.6 72.1 82.0 99.8 59.1 Interest Expense 17.9 13.4 12.4 15.2 16.4 18.0 13.1 Net Interest Income 36.1 43.2 51.2 57.0 65.6 81.8 46.0 Non-interest Income 24.4 31.8 29.5 31.9 41.6 47.2 22.8 Fee Income 13.4 15
Slide 19: Balance Sheet
Balance Sheet (in PHP billion) 2012 2013 2014 2015 2016 2017 2Q18 Resources Reserve Assets 201.4 491.5 488.4 461.7 511.0 511.1 538.1 Investment Securities 237.3 227.9 221.5 225.8 269.0 332.9 361.6 Gross Customer Loans 769.0 911.5 1,089.4 1,279.4 1,482.0 1,754.9 1,914.3 Investment Properties 9.1 10.4
Slide 20: Financial Performance Indicators
Financial Performance Indicators 2012 2013 2014 2015 2016 2017 1H18 Profitability a Return on Ave. Common Equity 12.0% 14.3% 13.6% 13.6% 12.7% 10.2% 8.8% a Return on Average Assets 1.3% 1.6% 1.3% 1.3% 1.3% 1.1% 0.9% Margins and Liquidity a Net Interest Margin (NIM) 3.4% 3.3% 3.2% 3.2% 3.2% 3.5% 3.5%
Slide 21: Presentation Outline
Presentation Outline I. Overview II. Financial Highlights III. Ownership, Board and Management IV. Environmental, Social and Governance V. Awards and Citations 21
Slide 22: Shareholder Structure
Shareholder Structure • Majority owned by the SM Group As of 30 June 2018 Percentage Name Nationality Shareholdings of Ownership SM Investments Corp. Filipino 1,750,930,649 40.07% PCD Nominee Foreign 1,341,372,908 30.70% PCD Nominee Filipino 782,274,759 17.90% Multi-Realty Development Corporation Fi
Slide 23: The SM Group
The SM Group • Harnessing synergies with the country’s largest conglomerate Access to SM’s customer • Largest local retail chain with 733 network stores nationwide • Over 17,000 PHL tenants Retail • Increased presence in • More than 9,500 suppliers discretionary retail with 1,283 • 3.5 million avera
Slide 24: Board of Directors
Board of Directors • One of the strongest Board of Directors in the industry with extensive banking and finance, legal and business background 7 directors out of 11 have an average of 35 years of banking Experienced Bankers experience, including a former Partner and Head of Asia Financials Researc
Slide 25: Board of Directors
Board of Directors • With broad business and professional experience Teresita T. Sy Henry T. Sy Senior Chairperson — first appointed to the Board in 1977 Chairman Emeritus — first appointed to the Board in 1976 Serves as Director in multiple subsidiaries of BDO Founder and Chairman of the SM Gro
Slide 26: Senior Management Team
Senior Management Team • With extensive professional banking expertise Nestor V. Tan President and CEO With BDO since 1997 Over 30 years of banking experience Intermediation Products, Services and Subsidiaries Walter C. Wassmer Ador A. Abrogena Albert Santiago Yeo Head — Business Lending Head —
Slide 27: Presentation Outline
Presentation Outline I. Overview II. Financial Highlights III. Ownership, Board and Management IV. Environmental, Social and Governance V. Awards and Citations 27
Slide 28: Sustainable Development Programs
Sustainable Development Programs Finding Ways through Innovative Banking 32 School buildings built with 112 classrooms serving 16,600 students 424,229 536 Disaster-resilient 50 homes built Health centers rehabilitated with Of which 88 units are for PWDs 4,751,660 and their families in a model commun
Slide 29: Sustainable Development Programs
Sustainable Development Programs Finding Ways through Innovative Banking 77% Female Employees PHP14.1 billion of 485.6 MWH capacity of renewable energy generated Sustainable Energy Finance Projects 636,545 tonnes of CO2e avoided Green facility in partnership with per year equivalent to: Japan Bank f
Slide 30: ESG Equity Fund
Sustainable Development Programs Finding Ways through Innovative Banking ESG EQUITY Over PhP 22 Million FUND Raised to-date* Period covered: Life Below Water Data: 2016 * From 2011-2017
Slide 31: Sustainable Development Programs
Sustainable Development Programs Finding Ways through Innovative Banking Governance principles of fairness, integrity, transparency, accountability and performance consistently applied throughout the institution Non-executive Directors including Independent Directors now comprise 90.91% of board str
Slide 32: ESG Recognition / Awards
ESG Recognition / Awards Institutional Investor One of the 15 Recipients of the Corporate Governance Asia Institutional Investor Governance Teresita T. Sy-Coson Awards 2016 Asian Corporate Director Award ASEAN Corporate Among the Best Companies in the Governance Scorecard Philippines in CSR and Amon
Slide 33: Presentation Outline
Presentation Outline I. Overview II. Financial Highlights III. Ownership, Board and Management IV. Environmental, Social and Governance V. Awards and Citations 33
Slide 34: Awards and Citations, 2014-2018
Awards and Citations, 2014-2018 Best Bank in the Philippines The Banker The Asset Bank of the Year, Philippines Best Domestic bank, Philippines (2014-2017) Euromoney Asiamoney Global Finance FinanceAsia Charlton East Coles Philippine Bank of the Top 15, Philippine Company of Year 2016 the Year 2016
Slide 35: Awards and Citations, 2014-2018
Awards and Citations, 2014-2018 Best Retail & Best Project Best Best Best Best Best Project Best Best Wholesale Finance Private Investment Debt/Equity, Wholesale Finance Private Investment Bank Bank Bank Bank M&A Bank Bank/Deals Bank Bank/Deals House The Asset The Asset The Asset The Asset The Asset
Slide 36: Awards and Citations, 2014-2018
Awards and Citations, 2014-2018 Best Best Bestin Best Best Best Best Best in Best in Best FX Bank/ in Cash Fund Mgt. & in Trade FX Bank/ in Internet Retail Bank Internet Social Media in Trade Provider Management Transaction Finance Provider Banking Banking Initiatives Finance Banking The The Asian B
Slide 37: Awards and Citations, 2014-2018
Awards and Citations, 2014-2018 Best Best in Best Best in Excellence Best Best Excellence in Excellence in FX Bank/ Fund in Trade inInvestor Internet FX Bank/ in Fund Leadership & Investor Provider Management Finance Banking Relations Provider Management Management Relations (Individual Awards) The
Slide 38: 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 39: Thank you. www.bdo.com.ph
Thank you. www.bdo.com.ph 39