Bdo Unibank, Inc. · PSE:BDO
Bdo Unibank — Investor Presentation (September 2016)
48 slides from Bdo Unibank's investor presentation, September 2016
Slide 1: Investor Presentation September 2016
September 2016 Investor Presentation
Slide 2: 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 3: Presentation Outline
Presentation Outline I. Overview 4 II. Financial Highlights 17 III. Ownership, Board and 27 Management IV. Environmental, Social and 33 Governance V. Awards and Citations 40 3
Slide 4: About BDO
About BDO • The Philippines’ largest bank with total assets of P2.16 Tn (USD46.39 Bn). • A full-service universal bank with one of the widest distribution networks consisting of 1,081 operating branches and over 3,300 ATMs nationwide. • Part of the SM Group, one of the country’s largest conglomerate
Slide 5: 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 TN Acquired Rural Bank of San Juan
Slide 6: Full Service Bank
Full Service Bank • Complete range of financial products and services Corporate & Leasing & Consumer Rural Branch Treasury Institutional Finance Banking Banking Banking Services Banking Corporate and Direct lease, Auto Salary loans Deposit & Fixed income middle market sale and Mortgage
Slide 7: Market Reach
Market Reach • Wide and extensive coverage in key areas Europe - 14 SEA, China, HK, Taiwan, 13 Remittance Offices 1 Representative Office Korea & Japan - 11 1 Full-service Branch 6 Remittance Offices 4 Representative Offices North America - 2 Middle East - 1 Remittance Offices Representative Office
Slide 8: Domestic Distribution Network
Domestic Distribution Network • With longer banking hours, Saturday banking in select commercial areas, and weekend banking for over 150 mall based branches • Widest market reach complemented by over 3,300 ATMs and electronic channels BDO ONB Total Luzon 297 4 301 Metro 488 1 489 Manila Visayas 105
Slide 9: Business Franchise
Business Franchise • Market-leading positions in almost all business lines #1 #1 #1 #1 #1 Loans Deposits Trust and Credit Remittance Asset Mgt Cards1 Leading Trade Major Player in Services Provider2 Cash Management3 #1 #1 #1 #2 #1 Local Investment Private Rural Leasing & Insurance Banking4 Banking B
Slide 10: Industry Ranking
Industry Ranking • No. 1 among Philippine banks Total Assets Gross Customer Loans (in PHP billions) (in PHP billions) BDO Market Share – 18% BDO Market Share – 22% Customer Deposits Assets Under Management (in PHP billions) (in PHP billions) BDO Market Share – 19% BDO Market Share – 35% Source: Comp
Slide 11: 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 BDORO Europe Ltd. Manila North Inc. 100% Financial Services Inc. 100% Brokers,
Slide 12: The Banker Top 1000 World Banks – Tier 1 Capital 2015
The Banker Top 1000 World Banks – Tier 1 Capital 2015 Rank Origin Bank USD Million 0 1000 2000 3000 4000 239 Grupo Financiero Banorte 4,231 240 Chugoku Bank 4,220 241 Alfa Bank 4,219 242 Xiamen International Bank 4,174 243 BDO Unibank 4,169 244 Bank ABC 4,079 245 Popular 4,050 246 Baoshang Bank 4,02
Slide 13: The Banker Top Philippine Banks – Tier 1 Capital 2015
The Banker Top Philippine Banks – Tier 1 Capital 2015 Rank Bank USD Million 0 1000 2000 3000 4000 1 4,169 2 MBT 3,348 2,645 3 BPI 4 PNB 1,575 5 1,052 LBP 6 SECB 1,046 7 RCBC 1,034 8 CHIB 1,005 Acronyms: BPI Bank of the Philippine Islands CHIB China Banking Corp. MBT Metropolitan Bank& Trust SECB Sec
Slide 14: Credit Ratings
Credit Ratings Capital Moody’s Fitch Intelligence 17-Nov-2015 21-Apr-2016 26-Aug-2016 Foreign Currency Bank Deposits/Issuer/Debt Rating (IDR) Long Term Baa2 BBB- BBB- Short Term Prime-2 F3 A3 Outlook Stable Stable Positive BCA/Viability/Financial Strength Rating Baseline Credit Assessment (BCA) baa2
Slide 15: 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* 3,648,146,948 Foreign Ownership Up to 40% American Depositary Receipts (ADR) Program Details Type Sponsored Level 1 ADR ADR Ticker BDO
Slide 16: Presentation Outline
Presentation Outline I. Overview 4 II. Financial Highlights 17 III. Ownership, Board and 27 Management IV. Environmental, Social and 33 Governance V. Awards and Citations 40 16
Slide 17: 1H16 Income Statement
1H16 Income Statement BDO Conso (in PHP billion) 1H16 1H15 YoY% Interest Income 39.9 34.3 16.6% Loans & Other Receivables 35.6 30.0 18.4% Interest Expense 8.2 7.2 14.0% Net Interest Income 31.7 27.1 17.2% Non-interest Income 22.1 16.4 34.6% Fee Income 10.6 9.0 18.2% Trading & FX 2.9 5.4 -46.0% Other
Slide 18: 2Q16 Balance Sheet
2Q16 Balance Sheet BDO Conso (in PHP billion) 2Q16 2Q15 YoY% Resources Reserve Assets 459.3 454.2 1.1% Investment Securities 267.3 239.9 11.4% Gross Customer Loans 1,368.2 1,126.6 21.4% Investment Properties 15.0 12.5 20.0% Other Assets 45.8 40.0 14.5% Total Resources 2,155.6 1,873.2 15.1% Liabiliti
Slide 19: Loan Growth
Loan Growth • Outpacing industry Industry 19
Slide 20: Deposits
Deposits • Sustained growth in low-cost deposits • With one of the highest CASA ratios (in P bn) Total CASA YoY∆ 13% 12% 31% 24% 19% 23% CASA Ratio 62% 64% 58% 64% 68% 69% 20
Slide 21: Net Income
Net Income • Sustainable growth from core income sources • Continued investments in products and distribution (in P bn) 21
Slide 22: Capital Adequacy Ratio
Capital Adequacy Ratio • Ratios above current Basel III standards Note: Minimum CET1 and Tier 1 ratios under Basel III are inclusive of the 2.5% capital conservation buffer. 22
Slide 23: 2011 to 1H16 Income Statement
2011 to 1H16 Income Statement (in PHP billion) 2011 2012 2013 2014 2015 1H16 Interest Income 50.5 54.0 56.6 63.6 72.1 39.9 Interest Expense 16.9 17.9 13.4 12.4 15.2 8.2 Net Interest Income 33.6 36.1 43.2 51.2 57.0 31.7 Non-interest Income 20.9 24.4 31.8 29.5 31.9 22.1 Fee Income 12.3 13.4 15.5 18.0
Slide 24: 2011 to 2Q16 Balance Sheet
2011 to 2Q16 Balance Sheet (in PHP billion) 2011 2012 2013 2014 2015 2Q16 Resources Reserve Assets 203.5 201.2 491.5 488.4 461.7 459.3 Investment Securities 188.4 237.3 227.9 221.5 225.8 267.3 Gross Customer Loans 670.1 769.0 911.5 1,089.4 1,279.4 1,368.2 Investment Properties 10.1 9.1 10.4 13.9 14.
Slide 25: Financial Performance Indicators
Financial Performance Indicators 2011 2012 2013 2014 2015 1H16 Profitability Return on Ave. Common Equity 12.4% 12.0% 14.3% 13.6% 13.6% 13.1% Return on Average Assets 1.0% 1.3% 1.6% 1.3% 1.3% 1.3% Margins and Liquidity Net Interest Margin (NIM) 3.5% 3.4% 3.3% 3.2% 3.2% 3.2% Loan to Deposit Ratio 78.
Slide 26: Presentation Outline
Presentation Outline I. Overview 4 II. Financial Highlights 17 III. Ownership, Board and 27 Management IV. Environmental, Social and 33 Governance V. Awards and Citations 40 26
Slide 27: Shareholder Structure
Shareholder Structure • Majority owned by the SM Group As of 30 June 2016 Percentage Name Nationality Shareholdings of Ownership SM Investments Corp. Filipino 1,463,657,368 40.13% PCD Nominee Foreign 1,172,473,134 32.08% PCD Nominee Filipino 565,487,891 15.62% Multi-Realty Development Corporation Fi
Slide 28: The SM Group
The SM Group • Harnessing synergies with the country’s largest conglomerate Access to SM’s customer • Largest local retail chain with 328 network stores nationwide • Over 17,000 PHL tenants Retail • Increased presence in • More than 9,500 suppliers discretionary retail with 1,429 • 3.5 million avera
Slide 29: 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 30: 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 31: 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 Josefina N. Tan Head — Business Lending Head — Trus
Slide 32: Presentation Outline
Presentation Outline I. Overview 4 II. Financial Highlights 17 III. Ownership, Board and 27 Management IV. Environmental, Social and 33 Governance V. Awards and Citations 40 32
Slide 33: Corporate Governance
Corporate Governance Strict adherence to best practices and ethical standards Five (5) principles of CG Structure and mechanisms practices in place • Accountability • Independent Directors • Fairness • Segregation of roles • Integrity • Checks & Balances • Transparency • Code of Conduct & • Performa
Slide 34: Corporate Governance
Corporate Governance Compliant with regulatory requirements Board Minimum no. of Independent Directors (2) 5 Independent Directors Cert. Of Attendance – Board Members Cert. Of Qualification of Ind. Directors Corporate Governance Corporate Governance Manual CG Guidelines Disclosure Template SEC Annua
Slide 35: Corporate Social Responsibility
Corporate Social Responsibility BDO Foundation’s Disaster Response Advocacy Relief, Rehabilitation and Reconstruction in Disaster hit areas • Relief operations mounted by BDO Volunteers • Rehabilitation and reconstruction of rural health centers
Slide 36: Corporate Social Responsibility
Corporate Social Responsibility BDO Foundation’s Disaster Response Advocacy Relief, Rehabilitation and Reconstruction in Disaster hit areas • Construction of houses in resettlement areas, multi-purpose halls and school buildings • Livelihood projects for families with disabled members (PWDs
Slide 37: Corporate Social Responsibility
Corporate Social Responsibility BDO Foundation’s Disaster Response Advocacy Relief, Rehabilitation and Reconstruction in Disaster hit areas • Distribution of teaching aids and instructional materials Tree Planting Activity in support of “Grow a Million Trees” Campaign
Slide 38: Environmental Initiatives
Environmental Initiatives ESG Considerations in Lending Lending Limits and Exclusion List • Imposes limits and monitors exposure to certain industries, e.g. Gaming, Tobacco and Alcohol • Restricts lending to other sectors under the Exclusion List (those deemed to have adverse or harmful effects on t
Slide 39: Environmental Initiatives
Environmental Initiatives Green Energy Investments IFC Partner in Sustainable Energy Finance (SEF) Program • Supports green energy investments in Energy Efficiency (EE) and Renewable Energy (RE) projects • Includes training of bank staff, delivering technical assistance assessments to BDO clients an
Slide 40: Environmental Initiatives
Environmental Initiatives Environmental Awareness, Conservation and Management “Go Green” Campaign • Raises awareness on environmental issues • Promotes good environmental practices in the workplace • Mobilizes volunteers for conservation programs Green Initiatives • Energy conservation • Water mana
Slide 41: Environmental Initiatives
Environmental Initiatives Sustainability, climate change and wildlife protection Support for World Wide Fund for Nature (WWF) Philippines • Joint fund-raising campaign using BDO’s ATM network as key channel to donate to WWF and support its various programs: • Donsol Whale Shark Program • Bancas for
Slide 42: ESG Awards
ESG Awards Recognition for ESG initiatives Corporate Governance Asia Among the Best One of the Best in Asia for in Asia for Environmental Corporate Social Responsibility Responsibility Platinum Award Awardee for ten (10) consecutive years Among the Top 50 Publicly- Listed Companies in the ACGS Silve
Slide 43: Presentation Outline
Presentation Outline I. Overview 4 II. Financial Highlights 17 III. Ownership, Board and 27 Management IV. Environmental, Social and 33 Governance V. Awards and Citations 40 43
Slide 44: Awards and Citations, 2014-2016
Awards and Citations, 2014-2016 Best Bank in the Philippines Euromoney Asiamoney The Asset FinanceAsia Among the Best Emerging Markets Banks Global Finance 44
Slide 45: Awards and Citations, 2014-2016
Awards and Citations, 2014-2016 Best Retail & Best Project Best Best Best Best Retail & Best Project Best Best in Wholesale Finance Private Investment Debt/Equity, Wholesale Finance Private Investment Bank Bank Bank Bank M&A Bank Bank Bank Bank House The Asset The Asset The Asset The Asset FinanceAs
Slide 46: Awards and Citations, 2014-2016
Awards and Citations, 2014-2016 Best Best in Best Best Best Best Best Best in Best FX Bank/ Fund in Trade in Cash Mgt. & in Internet FX Bank/ in Fund Trade in Internet Provider Management Finance Transaction Banking Provider Management Finance Banking Banking The Asset Impact Investor of the Year Aw
Slide 47: Awards and Citations, 2014-2016
Awards and Citations, 2014-2016 Excellence in Excellence in Excellence in Leadership & Investor Investor Management Relations Relations (Individual Awards) Asiamoney Best Managed Company in the Philippines – Large Cap Nestor V. Tan Teresita T. Sy & Nestor V. Tan Best Executive Among the Best Investo
Slide 48: Thank you. www.bdo.com.ph
Thank you. www.bdo.com.ph 48