Bdo Unibank, Inc. · PSE:BDO
Bdo Unibank — Q1 2022 Earnings Presentation
36 slides from Bdo Unibank's earnings presentation, June 2022
Slide 1: BDO 1Q22 Results
Investor Presentation BDO 1Q22 Results June 2022 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 1Q22 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, cash management, leasing and fi
Slide 4: Milestones
Milestones Expansion through organic growth and M&As Acquired RB Pandi 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 Acquired
Slide 5: 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 middle Direct lease, sale and Auto Salary loans Deposit & related Fixed income market le
Slide 6: 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 Rural Banking Insurance Services Management3 Banking4 Banking Brokerage5
Slide 7: Market Reach
Market Reach Wide and extensive coverage in key areas North America Europe Middle East Asia Philippines 2 Remittance 1 Remittance Office Representative 2 Full-service Branches 1,579 Branches & Offices[1] Offices 2 Representative Offices 5 Remittance Offices 4,500+ATMs Offices 3 Representative Office
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 18% Market Share 39% BDO 3,611 BDO 2,367 BDO 2,819 BDO 1,769 LBP 2,808 BPI 1,510 LBP 2,461 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 3-June-2022 10-May-2022 Outlook Stable Negative Bank Deposits (Foreign/Local) Long Term Baa2 BBB- Short Term P-2 F3 Senior Unsecured debt (Foreign) Baa2 BBB- Other Short Term (P)P-2 BCA/Viability Rating Baseline Credit Assessment (BCA) baa2 Adjusted BCA Rating baa2 Viabi
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* 4,386,087,022 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 1Q22 Results
Slide 13: 1Q22 P&L BDO Conso
1Q22 P&L BDO Conso (PHP bn) 1Q22 1Q21 YoY% Interest Income 37.2 35.5 5% Interest Expense 3.3 3.5 -3% Net Interest Income 33.9 32.0 6% Non-interest Income 16.7 15.4 9% Fee Income 9.4 8.1 16% Insurance Premiums 5.0 5.1 -2% Trading & FX 1.2 0.8 55% Others 1.1 1.4 -23% Gross Operating Income 50.6 47.4 7
Slide 14: Balance Sheet
Balance Sheet BDO Conso (PHP bn) 1Q22 1Q21 YoY% Resources Reserve Assets 584.3 634.1 -8% Investment Securities 643.6 482.0 34% Gross Customer Loans 2,383.0 2,217.9 7% Investment Properties 18.7 15.5 20% Other Assets 40.8 46.8 -13% Total Resources 3,670.5 3,396.4 8% Liabilities Deposits 2,817.8 2,631
Slide 15: Loan Growth
Loan Growth BDO Loan Growth vs. Industry 19.4% 2016-2021 5YR CAGR 20.0% BDO = 10.1% 15.7% 18.4% Industry = 9.7% 15.0% 15.1% 10.9% 8.9% 10.0% BDO 9.3% 6.0% 7.4% 5.0% 2.5% Industry * 4.8% 0.0% -0.7% -5.0% -10.0% 2017 2018 2019 2020 2021 1Q22 * U/KBs 15 BDO Investor Presentation 1Q22 Results
Slide 16: Capital and Profitability
Capital and Profitability Capital Adequacy Ratioa Parent Conso 15% 14.6% 14.2% 14.2% 15% 14.3% 14.6% CAR 14% 13.8% 14% Tier 2 13% 13% 13.5% 13.5% Tier 1 13.1% 13.1% 13.2% 12% 12.7% 12% CET1 11% 11% Min CET1 Ratio 10% 10% with D-SIB a Per SOC, BSP 9% 9% 8% 8% 2020 2021 1Q22 2020 2021 1Q22 Net Income
Slide 17: Income Statement
Income Statement (PHP bn) 2017 2018* 2019* 2020 2021 1Q22 Interest Income 99.8 129.0 160.6 157.0 144.9 37.2 Interest Expense 18.0 30.7 40.7 23.3 13.5 3.3 Net Interest Income 81.8 98.3 119.9 133.7 131.3 33.9 Non-interest Income 47.2 50.4 60.1 55.2 61.4 16.7 Fee Income 28.9 30.7 35.3 28.6 34.8 9.4 Ins
Slide 18: Balance Sheet
Balance Sheet (PHP bn) 2017 2018 2019 2020 2021 1Q22 Resources Reserve Assets 509.7 534.4 450.7 532.2 551.9 584.3 Investment Securities 332.9 385.2 435.9 508.8 616.3 643.6 Gross Customer Loans 1,754.9 2,020.1 2,208.1 2,263.7 2,400.2 2,383.0 Investment Properties 18.0 19.8 16.9 15.9 18.8 18.7 Other A
Slide 19: Financial Performance Indicators
Financial Performance Indicators 2017 2018 2019 2020 2021 1Q22 Profitability Return on Ave. Common Equity 10.2% 10.7% 12.8% 7.6% 10.5% 11.1% Return on Average Assets 1.1% 1.1% 1.4% 0.9% 1.2% 1.3% Margins and Liquidity Net Interest Margin (NIM) 3.5% 3.6% 4.2% 4.4% 4.1% Loan to Deposit Ratio 82.7% 83.
Slide 20: Presentation Outline
Presentation Outline I. Overview II. Financial Highlights III. Ownership, Board and Management IV. Sustainability V. Awards and Citations 20 BDO Investor Presentation 1Q22 Results
Slide 21: Shareholder Structure
Shareholder Structure • Majority owned by the SM Group As of 31 Mar 2022 Percentage Name Nationality Shareholdings of Ownership SMIC, Sy Family and Affiliated Entities Filipino 2,421,175,335 55.20% Free Float 1,964,692,580 44.80% Total Outstanding Shares* 4,385,867,915 100.00% Total Foreign % Shareh
Slide 22: 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 3,215 stores nationwide (68 The SM Store, 1,539 specialty • Over 17,000 PHL tenants Retail retail outlets, 61 SM Supermarkets, 52 SM • More than 9,500 suppliers H
Slide 23: 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 4 out of the 11-member Board Experienced 9 directors have an average of 37 years of banking Bankers experience, including a
Slide 24: Board of Directors
Board of Directors • With broad business and professional experience TERESITA T. SY JONES M. CASTRO, JR. VIPUL BHAGAT DIRECTOR INDEPENDENT DIRECTOR CHAIRPERSON First appointed to the Board in 2022 First appointed to the Board in 1977 First appointed to the Board in 2012 Independent board adv
Slide 25: Senior Management Team
Senior Management Team • With extensive professional banking expertise NESTOR V. TAN President and CEO With BDO since 1997 Over 39 years of banking experience INTERMEDIATION SERVICES MARIA THERESA L. TAN CECILIA LUZ L. TAN JAIME C. YU RAFAEL G. AYUSTE JR. General Manager of Lead Co-head of Busin
Slide 26: Senior Management Team, continued
Senior Management Team, continued • With extensive professional banking expertise NESTOR V. TAN President and CEO With BDO since 1997 Over 39 years of banking experience CORPORATE SUPPORT LUCY CO DY JOSEPH ALBERT L. GOTUACO EVELYN C. SALAGUBANG Head of Comptrollership Head of Central Operations
Slide 27: Presentation Outline
Presentation Outline I. Overview II. Financial Highlights III. Ownership, Board and Management IV. Sustainability V. Awards and Citations 27 BDO Investor Presentation 1Q22 Results
Slide 28: 2021 Sustainability Report
2021 Sustainability Report Fourth 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 29: Translating Goals Into Actions
Translating Goals Into Actions United Nations Sustainable Development Goals Product Sustainability Kabuhayan Loan • Zero Collateral • Affordable loans from PHP30k to PHP1M • Over 50% MSMEs financed are women-owned • BDO Pay • 1,205 Biometrics-enabled ATMs nationwide • BDO ESG Equity Fund (The first
Slide 30: Translating Goals Into Actions
Translating Goals Into Actions United Nations Sustainable Development Goals • 38,873 employees nationwide and abroad; 75% Human Capital females in the workforce • 59% female representation in senior Sustainability leadership • 48% employees covered by Collective Bargaining Agreement Served more than
Slide 31: Translating Goals Into Actions
Translating Goals Into Actions The SEF program financed renewable energy, energy efficiency and green building projects BDO Sustainable Energy Finance (Php bn) 2021 121 2020 119 2019 110 2,230 MW 4,266,687 70,550,565 Total installed Tonnes Carbon Equivalent tree 2018 41 renewable energy dioxide avoi
Slide 32: Presentation Outline
Presentation Outline I. Overview II. Financial Highlights III. Ownership, Board and Management IV. Sustainability V. Awards and Citations 32 BDO Investor Presentation 1Q22 Results
Slide 33: Awards & Recognition
Awards & Recognition Best Bank in the Philippines Alpha Southeast Asia FinanceAsia (2010-2016, 2018, 2020-2021) (2010-2021) AsiaMoney Forbes (2020) (2021) The Asset Global Finance (2011, 2013-2021) (2014-2017, 2019-2021) The Banker International Banker (2021) (2020) Enterprise Asia Reader’s Digest (
Slide 34: Awards & Recognition
Awards & Recognition Sustainability and ESG Asian Banking & Finance Enterprise Asia BDO Foundation, COVID Management Initiative BDO Foundation (Category: Health Promotion) of the Year – Philippines (2020-2021) Asia Responsible Enterprise Awards (2021) The Asset FinanceAsia Platinum Award (2010-2021)
Slide 35: 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 36: Thank you.
Thank you. www.bdo.com.ph 36 BDO Investor Presentation 1Q22 Results