Bank Of The Philippine Islands · PSE:BPI
Bank Of The Philippine Islands — Q2 2022 Earnings Presentation
31 slides from Bank Of The Philippine Islands's earnings presentation, August 2022
Slide 1: BPI Investor Presentation 2Q 2022
BPI Investor Presentation 2Q 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 prospects have continually declined on concerns over inflation and geopolitical issues Global • Inflation has become the leading risk to economic growth after rising well-above expectations Growth • Central banks are exiting from monetary policy accommodation to a
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 profitability, further boosted by net gains on sale of property Profitability • 2Q22 record income of P12.5 bn, up 83% YoY • Improved profitability with ROE at 13.98% • Continued improvements in asset quality Asset Quality • NPL ratio at 1.99%; NPL
Slide 6: Profitability – 1H
Profitability – 1H In P bn 1H 2021 1H 2022 YoY Net Interest Income 33.87 39.34 16.2% Non-Interest Income 14.25 18.30 28.4% Trading Income 2.52 1.62 -35.7% Non-Trading Income 11.73 16.68 42.2% • Growth in net income driven by higher revenues and decline in Net Revenues 48.12 57.64 19.8% provisions; u
Slide 7: Profitability – 2Q
Profitability – 2Q In P bn 2Q 2021 1Q 2022 2Q 2022 QoQ YoY Record quarter income at P12.46 bn Net Interest Income 17.01 18.99 20.35 7.2% 19.6% Non-Interest Income 6.80 6.37 11.93 87.4% 75.4% QUARTER-ON-QUARTER Trading Income 0.78 0.90 0.72 -19.7% -7.6% • Sequential increase in net income, up 56.1% o
Slide 8: Net Income and ROE
Net Income and ROE • Record quarter income, up 83% YoY • Sustained double digit ROE at 13.98% • Improvement supported by accelerating loan growth, increase in NIM and higher transaction volume driven by expansion of client base and gains in customer engagement Amounts in P bn Net Income Return on Eq
Slide 9: Revenues
Revenues • Revenue up 36% YoY • Net interest income up 20% YoY, primarily on strong loan growth and continued NIM improvements • Non-interest income driven by gains from asset sale which offset moderation in trading and fee income Amounts in P bn Total Revenues Non-Interest Income +35.6% YoY +75.4%
Slide 10: Balance Sheet
Balance Sheet QUARTER-ON-QUARTER • Continued balance sheet expansion, marking five sequential quarter improvements YEAR-ON-YEAR • Highest YoY deposit and loan growth since the pandemic • Strong liquidity and capital position 10 THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS.
Slide 11: Loan Book and NIM
Loan Book and NIM • Loans up 6% QoQ; up 14% YoY • Sequential increases in NIM driven by continued recovery in asset yields • Positioned to benefit from rising interest rates as 70% of loan portfolio reprices within a year. Amounts in P bn Gross Loans Net Interest Margin +14.3% YoY +6.3% QoQ QoQ Chan
Slide 12: Loan Book per Segment
Loan Book per Segment Total Gross Loans Corporate & SME Credit Cards 1,611.3 81.8 1,287 ₱1,611B 1,529 ₱1,287B 1,214 ₱82B 76 70 +6.3% vs. Last Quarter 1,107 1,410 +7.2% vs. Last Quarter +7.6% vs. Last Quarter +14.3% vs. Last Year +16.3% vs. Last Year +16.5% vs. Last Year JAN OCT DEC20 DEC21 JAN MAY A
Slide 13: Funding
Funding • Record deposit growth, up 18% YoY, underpinned by solid franchise • Bond maturities in the 2Q22 were not refinanced and replaced by deposits • CASA ratio slightly declined to 79% Amounts in P bn Deposits Borrowings 83.2% 81.0% 80.1% 79.2% 77.0% +18.3% YoY +5.4% QoQ 1,955 1,993 1,891 QoQ 1,
Slide 14: Fee Income
Fee Income • Net of gain on sale of asset, fee income was relatively flat; down 0.3% • Underlying businesses remain robust Ranked According to Contribution to 1H 2022 Fee Income Fee Income YoY Growth Amounts in P bn +27.2x Asset Sales, 31.6% +12.2% Cards, 16.3% -0.3% YoY +0.1% Asset Management, 12.5
Slide 15: Operating Expenses
Operating Expenses • Expenses moderately up 8% YoY and 5% QoQ • Growth predominantly driven by investments in technology to support to long-term growth • Investments in digitalization improved efficiency and drove cost savings Amounts in P bn Opex +8.0% YoY 1 +5.4% QoQ 2 13.3 Total Opex 12.3 12.6 2
Slide 16: Provisions & Asset Quality
Provisions & Asset Quality Provisions & Credit Cost NPL Level 2021 2022 ▪ Continued improvements in asset quality in ₱ bn, bps -11.0% vs. Last Quarter ▪ Provision for losses was flat quarter-on- ₱31.9B -22.8% vs. Last Year quarter to account for uncertainties in economic outlook 41.3 2.90 38.8 39.1
Slide 17: Capital Position
Capital Position • CET1 and CAR slightly declined reflecting growth in risk-weighted assets and increase in dividend payments • Distributed dividends of P1.06 per share, up P0.16 or 18% compared to last year • Capital remains robust to support growth Capital Ratios Dividend Distribution Cash Dividen
Slide 18: Summary
Summary Profitability : Positive growth momentum intact underpinned by accelerating loan and deposit growth 1 and increase in NIM; expanding customer base and gains from customer engagement supportive of incremental income growth 2 Balance Sheet : Robust capital position provides adequate buffer fro
Slide 19: 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 20: Important Information
Important Information DISCLAIMER: This presentation has been prepared by the Bank of the Philippine You may also reach out to BPI's Islands (“BPI” or the “Company”) solely for informational purposes. All contents complaints handling unit for other hereof are the sole and exclusive property of BPI. N
Slide 21: Appendices
Appendices 21 THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS.
Slide 22: Macroeconomic & Industry Indicators
Macroeconomic & Industry Indicators Indicators, as of end-of-period 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 in %, except USD/PHP GDP Growth (YoY) -8.2 -3.8 12.1 7.0 7.8 8.2 7.4 Current Account (% to GDP) 3.9 -0.3 -1.4 -1.0 -3.5 -5.0 Inflation 3.5 4.5 4.1 4.8 3.6 4.0 6.1 M3 Growth (Yo
Slide 23: 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 24: BPI at a glance
BPI at a glance ✓ The first bank in the Philippines and Southeast Asia, and the longest tenured bank with 171 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 25: 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 June 2022) Segments Amongst the
Slide 26: Financial Highlights
Financial Highlights Jun 2021 Mar 2022 Jun 2022 r YoY r QoQ 2Q21 4Q21 1Q22 2Q22 r QoQ r YoY Balance Sheet (in P bn) Profitability (in P bn) Assets 2,178.6 2,378.3 2,464.3 13.1% 3.6% Net Interest Income 17.0 18.4 19.0 20.3 7.2% 19.6% Net Loans 1,360.6 1,462.1 1,557.0 14.4% 6.5% Non-Interest Income 6.
Slide 27: Financial Highlights (in USD)
Financial Highlights (in USD) Jun 2021 Mar 2022 Jun 2022 r YoY r QoQ 2Q21 4Q21 1Q22 2Q22 r QoQ r YoY Balance Sheet (in USD bn) Profitability (in USD mn) Assets 41.9 46.8 44.8 6.8% -4.4% Net Interest Income 350.4 362.7 365.5 369.8 1.2% 5.6% Net Loans 26.2 28.8 28.3 8.1% -1.7% Non-Interest Income 140.
Slide 28: BPI Executive Management
BPI Executive Management As of June 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 Head,
Slide 29: 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
Slide 30: 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 238,000 SEMEs served Board-approval and implementatio
Slide 31: Awards and Recognitions
Awards and Recognitions As of June 30, 2022 Institutional BPI Foundation Bancassurance Best Bank Best Life Insurance Company Best Bank in the Phils.; For Corporate Social in the Phils. Outstanding CSR Project WWF Climate Financial Leadership in Responsibility in PH BPI-Philam Life Best Sustainable B
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