Bdo Unibank, Inc. · PSE:BDO
Bdo Unibank — Investor Presentation (August 2015)
44 slides from Bdo Unibank's investor presentation, August 2015
Slide 1: 1
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Slide 2: Investor Presentation August 2015
August 2015 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 900 operating branches and over 2,800 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 Acquired Citi Savings Bank, DB Trust and Acquired GE Real Bank Money Bank P1.9 TN Acquired UOB Philippines’ Acquired branch banking business One P1.2 TN Network Acquired 1st e-Bank’s Bank banking business Acquired by P617 BN Acquired Rural P862
Slide 6: Full Service Bank
Full Service Bank • Complete range of financial products and services Branch Transaction Consumer Insurance Trust Banking Banking Banking Lending Deposit and Cash management Brokerage Investment Auto related products services Bancassurance management Mortgage Over-the-counter Elect
Slide 7: Market Reach
Market Reach • Wide and extensive coverage in key areas Europe - 15 14 Remittance Offices SEA, HK, Taiwan & Korea - 9 1 Representative Office 1 Full-service Branch 5 Remittance Offices 3 Representative Offices North America - 3 Middle East - 1 Remittance Offices Representative Office Philippines - 9
Slide 8: Domestic Distribution Network
Domestic Distribution Network • 900 operating branches as of 12 August 2015 452 Metro Manila 283 2,804 ATMs Nationwide Mobile/Internet Banking 97 Longer Banking Hours, 68 Weekend Banking for over 140 Mall Based Branches 8
Slide 9: Business Franchise
Business Franchise • Market-leading positions in almost all business lines #1 #1 #1 #1 #1 Trust and Private Loans Deposits Remittance Asset Mgt Banking Leading Trade Major Player in Services Provider1 Cash Management2 #2 #1 #1 Local #1 Leasing & Investment Insurance Credit Cards3 Finance Banking4 Br
Slide 10: Industry Ranking
Industry Ranking • No. 1 among Philippine banks Total Assets Gross Customer Loans (in PHP billions) (in PHP billions) 1,886 1,630 1,124 BDO Market Share – 17% BDO Market Share – 22% 1,414 1,091 775 733 617 377 334 476 470 464 441 295 275 357 203 164 153 MBT BPI LBP PNB China RCBC DBP SECB UBP BPI MB
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 18 June 2015 24 April 2015 24 August 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
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: 1H15 Income Statement
1H15 Income Statement (in PHP billion) 1H15 1H14 YoY % Interest Income 34.3 30.5 12%1 Interest Expense 7.2 6.0 21% Net Interest Income 27.1 24.6 10% Non-interest Income 16.4 14.4 14% Fee Income 9.0 8.3 8% Trading & FX 5.4 4.3 25% Others 2.1 1.8 17% Gross Op Income 43.5 39.0 12% Operating Expense 26.
Slide 18: 2010 to 1H15 Income Statement
2010 to 1H15 Income Statement (in PHP billion) 2010 2011 2012 2013 2014 1H15 Interest Income 49.9 50.5 54.0 56.6 63.7 34.3 Interest Expense 15.8 16.9 17.9 13.4 12.4 7.2 Net Interest Income 34.2 33.6 36.1 43.2 51.2 27.1 Non-interest Income 17.8 20.9 24.4 31.8 29.5 16.4 Fee Income 10.4 12.3 13.4 15.5
Slide 19: 2Q15 Balance Sheet
2Q15 Balance Sheet (in PHP billion) 2Q15 2Q14 YoY % Resources Reserve Assets 463.1 482.5 -4% Investment Securities 239.9 193.7 24% Gross Customer Loans 1,126.6 975.1 16% Investment Properties 12.5 10.1 24% Other Assets 31.1 23.1 35% Total Resources 1,873.2 1,684.5 11% Liabilities Deposits 1,520.4 1,
Slide 20: 2010 to 2Q15 Balance Sheet
2010 to 2Q15 Balance Sheet (in PHP billion) 2010 2011 2012 2013 2014 2Q15 Resources Reserve Assets 229.6 203.5 201.2 491.5 488.4 463.1 Investment Securities 197.3 188.4 237.3 227.9 221.5 239.9 Gross Customer Loans 541.5 670.1 769.0 911.5 1,089.4 1,126.6 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 1H15 Profitability Return on Ave. Common Equity 11.3% 12.1% 11.7% 14.0% 13.4% 13.2%* Return on Average Assets 1.0% 1.0% 1.2% 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% 22% 21% 20% 17% 18% BDO 16% 20% 19% 16% 15% 16% 16% 15% Industry 10% 9% 5% 2010 2011 2012 2013 2014 2Q15 22
Slide 23: Deposits
Deposits (in P bn) 1,600 1,520 1,492 1,400 1,345 533 520 Time 1,200 Deposits 570 1,000 932 859 CASA 800 783 339 328 600 311 959 1000 400 775 531 592 200 471 0 2010 2011 2012 2013 2014 2Q15 CASA YoY∆ 19% 13% 12% 31% 24% 17% CASA Ratio 60% 62% 64% 58% 64% 66% 23
Slide 24: Net Income
Net Income • Record profits, better quality core earnings (in P bn) 30 25 22.6 22.8 20 15 14.3 10.4 10 8.9 11.7 5 0 2010 2011 2012 2013 2014 1H15 24
Slide 25: Capital Adequacy Ratio
Capital Adequacy Ratio • Ratios above Basel III standards 16% 13.6% 14% CAR 12% 11.9% 10.0% Tier 1 10% CET1 10.0% 8% 6% 11.5% 4% 8.5% 2% 0% Minimum Basel III BDO-Consolidated Requirement 2Q15 BDO capital ratios reflect cash dividends declared but not yet paid. 25
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 30 June 2015 Percentage of Name Nationality Shareholdings Ownership SM Investments Corp. Filipino 1,463,657,368 40.87% PCD Nominee Foreign 1,181,880,830 33.01% PCD Nominee Filipino 555,759,235 15.52% Multi-Realty Development Filipino 236,4
Slide 28: The SM Group
The SM Group • Harnessing synergies with the country’s largest conglomerate • Largest local retail chain with 289 Access to SM’s customer stores nationwide network Retail • Dominant domestic mall • 21,000 PHL tenants developer/operator - 52 malls with • More than 5,000 suppliers GFA of 6.6 mn sqm •
Slide 29: Board of Directors
Board of Directors • One of the strongest Board of Directors in the industry with extensive banking and related experience Experienced 8 directors out of 11 have an average of 34 years of banking Bankers experience Practicing 2 directors are practicing attorneys, and the other a Lawyers Philippi
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 33-year banking experience Intermediation Services Walter C. Wassmer Ador A. Abrogena Geneva T. Gloria Head — Business Lending Head — Trust and Investments Head — Remittance
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 2013-2014 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: Institutional Awards and Citations, 2013-2015
Institutional Awards and Citations, 2013-2015 Best Bank in the Philippines Strongest Bank in the Philippines 40
Slide 41: Institutional Awards and Citations, 2013-2015
Institutional Awards and Citations, 2013-2015 Best Best Best Best Retail & Wholesale Private Bank Investment Bank Equity House Bank In the Philippines in the Philippines in the Philippines in the Philippines 41
Slide 42: Institutional Awards and Citations, 2013-2015
Institutional Awards and Citations, 2013-2015 Excellence Excellence In Investor In Investor Relations Relations (Individual Awards) Teresita Sy-Coson Among the Best One of Asia’s Best CEOs Investor Relations (Investor Relations) Companies in the Philippines Pedro M. Florescio One of Asia’s Best CFOs
Slide 43: Institutional Awards and Citations, 2013-2015
Institutional Awards and Citations, 2013-2015 Best FX Bank/ Fund House Best in Leading Provider of the Year Trade Finance Counterparty Bank 43
Slide 44: Thank you. www.bdo.com.ph
Thank you. www.bdo.com.ph 44