Bank Of The Philippine Islands · PSE:BPI
Bank Of The Philippine Islands — FY2021 Earnings Presentation
27 slides from Bank Of The Philippine Islands's earnings presentation, 2022
Slide 1: 4Q & FY 2021 Investor Presentation
4Q & FY 2021 Investor Presentation
Slide 2: Macroeconomic Updates
(} BPI Macroeconomic Updates
Slide 3: Economic Highlights
Economic Highlights • Global economy continues to recover ; 2021 global GDP forecast at 5.9% (IMF) Global • Major central banks left key rates unchanged but indicated exit from monetary policy accommodation Growth • Global inflation is at two-decade high, driven by firming demand, supply chain disru
Slide 4: Performance Highlights
BPI Performance Highlights
Slide 5: Performance Highlights
Performance Highlights • 11.5% earnings growth driven by sharply lower provisions and record fee income 23.88 B NIM at 3.30%, down by 19 bps as asset yields remained low, offset by lower cost of funds Profitability • Higher cost to income ratio at 52%, driven by lower revenues and higher opex, on te
Slide 6: Net Income
Net Income • Higher ROE • Increased profitability year-on-year and sequential quarter; 4Q21 income second highest since the pandemic • Rebound in full year net income driven by record fee income, lower provisions and cost control Amounts in P bn Year-on-Year Quarter-on-Quarter 10.97% 8.40% 7.70% 28.
Slide 7: Revenues
Revenues • 4Q21 revenue of 25.8B is at a record high, and up 9.7% QoQ • 4Q21 fee income was up 15.3% YoY with each quarter showing sequential gains • Full year fee income of 23.8B, up 23.2%, provided revenue stability during a period of weak trading income and NIM contractio n Amounts in P bn Year-o
Slide 8: Loan Book
Loan Book Total Gross Loans Corporate SME ₱1,529B 1,529 ₱1,154B 1,154 ₱60B YTD Dec 2021 YTD Dec 2021 1,102 YTD Dec 2021 1,450 60 1,438 1,082 57 +6.3% vs. Last Quarter +6.7% vs. Last Quarter +10.1% vs. Last Quarter 54 +5.4% vs. Last Year +4.7% vs. Last Year +5.2% vs. Last Year JAN OCT MAY DEC21 DEC20
Slide 9: Net Interest Margin
Net Interest Margin • NIM for the month of December was the highest for the year • Sustained NIM recovery expected in a rising interest rate environment Year-on-Year Quarter-on-Quarter 5.13% YoY Change 4.65% 4.02% -63 bps Monthly NIM 3.35% 3.49% 3.30% -19 bps 3.43% 3.36% 3.28% 3.24% 3.29% 3.30% 2.01
Slide 10: Funding
Funding • Strong growth in deposit year-on-year, with each quarter showing sequential growth • Increase in deposit recorded across all client segments • Borrowings declined year-on-year on bond maturities, improving funding cost Amounts in P bn Deposits Borrowings 82.6% 83.2% 79.6% 80.1% 77.0% +13.9
Slide 11: Fee Income
Fee Income • Fee income evolving as a solid revenue stream • Record fee income is reflective of strong growth across all businesses • Record high in wealth management fees, investment banking fees, and credit card fees YoY Growth % Contribution to FY 2021 Fee Income* +14.9% Cards, 21.6% % of Fee Inc
Slide 12: Operating Expenses
Operating Expenses • Modest increase in operating expenses, mainly on technology spend • Cost-to-income retraced 2019 level • Continued reduction in branch footprint as clients migrate to digital channels Amounts in P bn Opex 2019 2020 2021 52.40% Cost to 52.08% Income 47.34% 1. Headcount 21,429 > 1
Slide 13: Credit Cost & Asset Quality
Credit Cost & Asset Quality Provisions & Credit Cost NPL Level in ₱ bn Sustained improvement in asset quality -2.9% vs. Last Quarter Credit cost trending down which bodes ₱38.0B 1.96% -2.1% vs. Last Year well for earnings growth 0.93% 0.41% 28.0 41.3 38.8 39.1 38.8 38.0 13.1 5.6 JAN OCT DEC20 DE
Slide 14: Capital Position & Dividends
Capital Position & Dividends • Robust capital position maintained notwithstanding the increase in credit risk weighted assets • Consistently paid fixed dividend per share; one of the highest dividend payouts in the industry • Strong capital buffer for further loan growth and strategic initiatives Ca
Slide 15: Thank you
https://www.bpi.com.ph/ Scan the QR code to download the 2020 Integrated Report or visit http://bit.ly/BPI-IR-2020 Thank you For your comments and queries contact us via: investorrelations@bpi.com.ph Tel: (632) 8246 5862 You may a lso reach out to BPI's complaints handling unit for other inquiries a
Slide 16: Appendices
BPI Appendices
Slide 17: Macroeconomic & Industry Indicators
Macroeconomic & Industry Indicators Indicators, as of end-of-period 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 in %, except USD/PHP GDP Growth (YoY) 5.9 -0.7 -17.0 -11.6 -8.3 -3.9 12.0 6.9 7.7 Current Account (% to GDP) -0.1 0.3 6.2 4.8 3.9 -0.3 -1.4 -1.0 Inflation 2.5 2.5
Slide 18: 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 19: BPI at a glance
BPI at a glance The first bank in the Philippines and Southeast Asia, and the longest tenured bank with almost 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 b
Slide 20: 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 Dec 2021) Segments Amongst the b
Slide 21: Financial Highlights
Financial Highlights Dec 2020 Sep 2021 Dec 2021 r YoY r QoQ FY 2020 3Q 2021 4Q 2021 FY 2021 r QoQ r YoY Balance Sheet (in P bn) Profitability (in P bn) Assets 2,233.4 2,260.4 2,421.9 8.4% 7.1% Net Interest Income 72.3 17.3 18.4 69.6 6.4% -3.7% Net Loans 1,407.4 1,387.2 1,476.5 4.9% 6.4% Non-Interest
Slide 22: Financial Highlights (in USD)
Financial Highlights (in USD) Dec 2020 Sep 2021 Dec 2021 r YoY r QoQ FY 2020 3Q 2021 4Q 2021 FY 2021 r QoQ r YoY Balance Sheet (in USD bn) Profitability (in P bn) Assets 46.5 44.4 47.7 2.6% 7.5% Net Interest Income 1,504.4 339.5 362.7 1,370.4 6.8% -8.9% Net Loans 29.3 27.2 29.1 -0.7% 6.8% Non-Intere
Slide 23: BPI Management Team
BPI Management Team As of December 31, 2021 Jose Teodoro “TG” Tere John-C Jojo Mon Ginbee Limcaoco Marcial Syquia Ocampo Jocson Go President & CEO EVP & CFO EVP EVP EVP & COO EVP 13 years with BPI 26 years with BPI 5 years with BPI 25 years with BPI 5 years with BPI 17 years with BPI • Elected Presi
Slide 24: BPI Management Team
BPI Management Team As of December 31, 2021 Olga Ang Eric Luchangco Sheila Tan Dino Gasmen Cathy Santamaria Jovi Alonso Mayette Gayares SVP SVP AMTC President SVP & Treasurer SVP & CMO SVP & CCO SVP & CRO 33 years with BPI 7 years with BPI 7 years with BPI 7 years with BPI 9 years with BPI 24 years
Slide 25: BPI Sustainable Funding Framework
BPI Sustainable Funding Framework USE OF PROCEEDS PROJECT EVALUATION AND SELECTION Green Bond : used for eligible green projects e.g. Renewable Involves: • Pre-qualification Energy, Energy Efficiency, Sustainable Water, Pollution • Inclusion in the Green and Prevention/Control & Green Social Finance
Slide 26: Sustainable Banking
Sustainable Banking We are committed to Responsible Banking and Responsible Operations Becoming the most financially inclusive Bank Embedding ESG in our culture Sustainability Commitments 2nd among microfinance Board approval and banks, after CARD MRI, 22% market share implementation of the BPI Sust
Slide 27: Awards and Recognitions
Awards and Recognitions Institutional BPI Foundation Bancassurance Best Life Insurance Company Best Bank in the Phils. Best IR Program: For Corporate Social Most Distinguished BPI-Philam Life “HR Asia Best Companies Outstanding Leadership in WWF Climate 5th in All-Asia Responsibility in PH Corporate
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