Bdo Unibank, Inc. · PSE:BDO
Bdo Unibank — Investor Presentation (February 2016)
44 slides from Bdo Unibank's investor presentation, February 2016
Slide 1: 1
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Slide 2: Investor Presentation February 2016
February 2016 Investor Presentation
Slide 3: Presentation Outline
Presentation Outline I. Overview 4 II. Financial Highlights 17 III. Ownership, Board and 27 Management IV. Corporate Governance and 33 Corporate Social Responsibility V. Awards and Citations 40 3
Slide 4: About BDO
About BDO • The Philippines’ largest bank with total assets of P1.9 Tn (USD42 Bn). • A full-service universal bank with one of the widest distribution networks consisting of 1,030 operating branches and over 3,000 ATMs nationwide. • Part of the SM Group, one of the country’s largest conglomerates. 4
Slide 5: Milestones
Milestones • Expansion through organic growth and M&As Joint Ventures with Nomura Securities, and Mitsubishi Motors Phils./Sojitz/JACCS Acquired Rural Bank of San Juan’s banking business P1.9 TN Merged with Equitable PCI Bank. Acquired Amex Savings Bank Philippines Acquired One Network Bank Acquired
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 13 Remittance Offices SEA, HK, Taiwan & Korea - 10 1 Representative Office 1 Full-service Branch 5 Remittance Offices 4 Representative Offices North America - 2 Middle East - 1 Remittance Offices Representative Office Philippines -
Slide 8: Domestic Distribution Network
Domestic Distribution Network • 923 BDO operating branches as of 10 Feb 2016 • Completed acquisition of One Network Bank in July 2015 BDO ONB Total Luzon 291 - 291 Metro 459 1 460 Manila Mobile/Internet Banking Visayas 100 11 111 Mindanao 73 95 168 Total 923 107 1,030 Branches Longer Banking Hours,
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 Cards3 Leading Trade Major Player in Services Provider1 Cash Management2 #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. BDO Unibank, Inc. PHILIPPINE PARENT BANK BDO Private Bank, Inc. 100% BDO Insurance Brokers, BDO Securities Inc. 100% BDO Capital & Investment Corp. 100% Corporation 100% Equimark-NFC CBN Grupo D
Slide 12: The Banker Top 1000 World Banks – Tier 1 Capital
The Banker Top 1000 World Banks – Tier 1 Capital Tier 1 Capital Ranking of Banks (as of 31 December 2014) World Rank Local Tier 1 Capital Country Name of Bank Current Previous Rank ($ Mn) 251 291 1 CY Bank of Cyprus 3,873 252 212 1 PR Popular 3,850 Hokuhoku Financial 253 236 18 JP 3,843 Group Bank N
Slide 13: The Banker Top Philippine Banks – Tier 1 Capital
The Banker Top Philippine Banks – Tier 1 Capital Tier 1 Capital Ranking of Banks (as of 31 December 2014) World Rank Local Tier 1 Capital Name of Bank Current Previous Rank ($ Mn) 255 268 1 BDO Unibank, Inc. 3,813 338 382 2 Bank of the Philippine Islands 2,711 345 314 3 Metropolitan Bank & Trust 2,6
Slide 14: Credit Ratings
Credit Ratings Capital Moody’s Fitch Intelligence 17-Nov-2015 20-Jan-2016 24-Aug-2015 Foreign Currency Bank Deposits/Issuer/Debt Rating (IDR) Long Term Baa2 BB+ BBB- Short Term Prime-2 B A3 Outlook Stable Positive Stable Baseline Credit Assessment (BCA) baa2 Adjusted BCA Rating baa2 Viability Rating
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 3,645,375,218 Foreign Ownership Up to 40% American Depositary Receipts (ADR) Program Details Type Sponsored Level 1 ADR ADR Ticker BDOU
Slide 16: Presentation Outline
Presentation Outline I. Overview 4 II. Financial Highlights 17 III. Ownership, Board and 27 Management IV. Corporate Governance and 33 Corporate Social Responsibility V. Awards and Citations 40 16
Slide 17: 9M15 Income Statement
9M15 Income Statement (in PHP billion) 9M15 9M14 YoY% Interest Income 52.9 46.3 14% Interest Expense 11.1 9.0 23% Net Interest Income 41.8 37.3 12% Non-interest Income 23.8 22.0 8% Fee Income 13.9 12.9 8% Trading & FX 6.3 6.2 2% Others 3.6 2.9 25% Gross Operating Income 65.6 59.3 11% Operating Expen
Slide 18: 2010 to 9M15 Income Statement
2010 to 9M15 Income Statement (in PHP billion) 2010 2011 2012 2013 2014 9M15 Interest Income 49.9 50.5 54.0 56.6 63.6 52.9 Interest Expense 15.8 16.9 17.9 13.4 12.4 11.1 Net Interest Income 34.2 33.6 36.1 43.2 51.2 41.8 Non-interest Income 17.8 20.9 24.4 31.8 29.5 23.8 Fee Income 10.4 12.3 13.4 15.5
Slide 19: 3Q15 Balance Sheet
3Q15 Balance Sheet (in PHP billion) 3Q15 3Q14 YoY% Resources Reserve Assets 430.8 469.6 -8% Investment Securities 241.3 195.4 23% Gross Customer Loans 1,223.1 1,031.8 19% Investment Properties 12.8 10.3 24% Other Assets 44.5 43.9 1% Total Resources 1,952.5 1,751.0 12% Liabilities Deposits 1,600.1 1,
Slide 20: 2010 to 3Q15 Balance Sheet
2010 to 3Q15 Balance Sheet (in PHP billion) 2010 2011 2012 2013 2014 3Q15 Resources Reserve Assets 229.6 203.5 201.2 491.5 488.4 430.8 Investment Securities 197.3 188.4 237.3 227.9 221.5 241.3 Gross Customer Loans 541.5 670.1 769.0 911.5 1,089.4 1,223.1 Investment Properties 12.0 10.1 9.1 10.4 13.9
Slide 21: Financial Performance Indicators
Financial Performance Indicators 2010 2011 2012 2013 2014 9M15 Profitability Return on Ave. Common Equity 11.9% 12.4% 12.0% 14.3% 13.6% 13.0%* Return on Average Assets 1.0% 1.0% 1.3% 1.6% 1.3% 1.3%* Margins and Liquidity Net Interest Margin (NIM) 4.1% 3.6% 3.4% 3.3% 3.2% 3.1%* Loans to Deposit Ratio
Slide 22: Loan Growth
Loan Growth 25% 24% 20% ~ 15% 10% 9% 5% 2010 2011 2012 2013 2014 3Q15
Slide 23: Deposits
Deposits (in P bn) CASA YoY∆ 19% 13% 12% 31% 24% 16% CASA Ratio 60% 62% 64% 58% 64% 66% 23
Slide 24: Net Income and ROE
Net Income and ROE • Record profits, better quality core earnings (in P bn) 24
Slide 25: Capital Adequacy Ratio
Capital Adequacy Ratio • Ratios above Basel III standards 16% 13.4% 14% CAR 12% 11.8% Tier 1 10% 10.0% CET1 10.0% 8% Note: Minimum CET1 and Tier 1 ratios under 6% 11.4% Basel III are inclusive of the 2.5% capital conservation buffer. 4% 8.5% 2% 0% BSP Basel III Requirement BDO-Consolidated (Fully Lo
Slide 26: Presentation Outline
Presentation Outline I. Overview 4 II. Financial Highlights 17 III. Ownership, Board and 27 Management IV. Corporate Governance and 33 Corporate Social Responsibility V. Awards and Citations 40 26
Slide 27: Shareholder Structure
Shareholder Structure • Majority owned by the SM Group As of 31 December 2015 Percentage Name Nationality Shareholdings of Ownership SM Investments Corp. Filipino 1,463,657,368 40.15% PCD Nominee Foreign 1,172,934,161 32.18% PCD Nominee Filipino 564,869,153 15.50% Multi-Realty Development Corporatio
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 294 network stores nationwide • Over 17,000 PHL tenants Retail • Dominant domestic mall • More than 5,000 suppliers developer/operator - 56 malls with • 3.0 million a
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 Services and Subsidiaries Walter C. Wassmer Ador A. Abrogena Josefina N. Tan Head — Business Lending Head — Trust and Inve
Slide 32: Presentation Outline
Presentation Outline I. Overview 4 II. Financial Highlights 17 III. Ownership, Board and 27 Management IV. Corporate Governance and 33 Corporate Social Responsibility 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 in practices: place: • Accountability • Independent Directors • Fairness • Segregation of roles • Integrity • Checks & Balances • Transparency • Code of Conduct & • Perfor
Slide 34: Corporate Governance
Corporate Governance Compliant with regulatory requirements Board Minimum no. of Independent Directors (2) 4 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 Governance
Corporate Governance Recognition for CG initiatives Awardee for ten (10) Platinum Silver Awardee consecutive years Award Corp Governance Scorecard Among the Top 50 Publicly- Listed Companies in the ACGS Scorecard 2013-2015 35
Slide 36: Corporate Social Responsibility
Corporate Social Responsibility BDO Foundation’s Advocacies Disaster Response • Relief operations using the SM supply chain and ground handling by BDO branches • Rehabilitation and reconstruction • Shelter/housing and resettlement areas, health centers, school buildings/classrooms and multi-purpose
Slide 37: Corporate Social Responsibility
Corporate Social Responsibility BDO Foundation’s Advocacies Healthcare • Construction/modernization of public health centers/ facilities Green/Environmental Initiatives • Go Green Program • Energy conservation/efficiency, proper solid and hazardous waste disposal • Tree planting, vegetable growing p
Slide 38: Corporate Social Responsibility
Corporate Social Responsibility Recognition for CSR initiatives Among the Best CSR Among the Best Environmentally Companies in the Philippines Responsible Companies in the Philippines 38
Slide 39: Presentation Outline
Presentation Outline I. Overview 4 II. Financial Highlights 17 III. Ownership, Board and 27 Management IV. Corporate Governance and 33 Corporate Social Responsibility V. Awards and Citations 40 39
Slide 40: Awards and Citations, 2014-2015
Awards and Citations, 2014-2015 Best Bank in the Philippines FinanceAsia Euromoney The Asset Asiamoney Among the Best Emerging Markets Banks Global Finance 40
Slide 41: Awards and Citations, 2014-2015
Awards and Citations, 2014-2015 Best Retail & Best Project Best Best Best Wholesale Bank Finance Bank Private Bank Investment Bank Debt/Equity House Asiamoney The Asset FinanceAsia FinanceAsia FinanceAsia The Asset The Asset The Asset The Asian Banker Euromoney 41
Slide 42: Awards and Citations, 2014-2015
Awards and Citations, 2014-2015 Excellence Excellence Excellence In Leadership & In Investor In Investor Management Relations Relations (Individual Awards) Asiamoney Best Managed Company in the Philippines – Large Cap Asiamoney Among the Best Teresita Sy-Coson One of Asia’s Best CEOs Nestor V. Tan I
Slide 43: Awards and Citations, 2014-2015
Awards and Citations, 2014-2015 Best FX Bank/ Best in Fund Best in Cash Best in Best in Internet Provider Management Management Trade Finance Banking Reader’s Digest Among the Most Trusted Brands The Asiamoney The Asset Asian Banker The The Asset FinanceAsia Asian Banker 43
Slide 44: Thank you. www.bdo.com.ph
Thank you. www.bdo.com.ph 44