Slide 1: BDO 2022 Results
Investor Presentation BDO 2022 Results March 2023 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 2022 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 P4.1 TN 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 A
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 Microfinance Insurance Services Management3 Banking4 Banking Brokerage5
Slide 7: Wide and Extensive Coverage in Key Areas
Wide and Extensive Coverage in Key Areas North America Europe Middle East Asia Philippines 2 Remittance 1 Remittance Office Representative 2 Full-service Branches 1,650 Branches & Offices Offices 2 Representative Offices 5 Remittance Offices 4,500+ATMs Offices 3 Representative Offices 2 3 1 10 1,650
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 22% Market Share 19% Market Share 39% BDO 4,014 BDO 2,667 BDO 3,220 BDO 1,825 LBP 3,156 BPI 1,707 LBP 2,777 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 13-Dec-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* 5,264,204,036 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 2022 Results
Slide 13: 2022 P&L BDO Conso
2022 P&L BDO Conso (PHP bn) 2022 2021 YoY% Interest Income 169.1 144.9 17% Interest Expense 19.8 13.5 47% Net Interest Income 149.2 131.3 14% Non-interest Income 71.5 61.4 17% Fee Income 43.1 34.8 24% Insurance Premiums 18.9 18.1 4% Trading & FX 5.5 3.8 42% Others 4.0 4.5 -11% Gross Operating Income
Slide 14: Balance Sheet
Balance Sheet BDO Conso (PHP bn) 2022 2021 YoY% Resources Reserve Assets 669.5 551.9 21% Investment Securities 722.8 616.3 17% Gross Customer Loans 2,613.8 2,400.2 9% Investment Properties 21.2 18.8 13% Other Assets 47.9 36.6 31% Total Resources 4,074.7 3,623.7 12% Liabilities Deposits 3,220.9 2,820
Slide 15: Capital & Profitability
Capital & Profitability 4Q22 = 15.3% Net Income & ROE (PHP bn) 13.0% 60 10.7% 12.8% 10.5% 10.2% 50 7.6% 57.1 ROE 10.0% 40 44.2 5.0% 42.8 Net Income 30 32.7 0.0% 20 28.1 28.2 10 -5.0% 0 -10.0% 2017 2018 2019 2020 2021 2022 Industry* ROE 10.0 9.3 10.3 6.6 9.1 11.9 Industry* ROA 1.1 1.1 1.3 0.8 1.1 1.4
Slide 16: Income Statement
Income Statement (PHP bn) 2017 2018* 2019* 2020 2021 2022 Interest Income 99.8 129.0 160.6 157.0 144.9 169.1 Interest Expense 18.0 30.7 40.7 23.3 13.5 19.8 Net Interest Income 81.8 98.3 119.9 133.7 131.3 149.2 Non-interest Income 47.2 50.4 60.1 55.2 61.4 71.5 Fee Income 28.9 30.7 35.3 28.6 34.8 43.1
Slide 17: Balance Sheet
Balance Sheet (PHP bn) 2017 2018 2019 2020 2021 2022 Resources Reserve Assets 509.7 534.4 450.7 532.2 551.9 669.5 Investment Securities 332.9 385.2 435.9 508.8 616.3 722.8 Gross Customer Loans 1,754.9 2,020.1 2,208.1 2,263.7 2,400.2 2,613.8 Investment Properties 18.0 19.8 16.9 15.9 18.8 21.2 Other A
Slide 18: Financial Performance Indicators
Financial Performance Indicators 2017 2018 2019 2020 2021 2022 Profitability Return on Ave. Common Equity 10.2% 10.7% 12.8% 7.6% 10.5% 13.0% Return on Average Assets 1.1% 1.1% 1.4% 0.9% 1.2% 1.5% Margins and Liquidity Net Interest Margin (NIM) 3.5% 3.6% 4.2% 4.4% 4.0% 4.1% Loan to Deposit Ratio 82.7
Slide 19: Presentation Outline
Presentation Outline I. Overview II. Financial Highlights III. Ownership, Board and Management IV. Sustainability V. Awards and Citations 19 BDO Investor Presentation 2022 Results
Slide 20: Shareholder Structure
Shareholder Structure • Majority owned by the SM Group As of 31 December 2022 Percentage Name Nationality Shareholdings of Ownership SM Investments Corp. Filipino 2,101,116,778 39.91% PCD Nominee Foreign 1,085,628,663 20.62% PCD Nominee Filipino 1,481,294,273 28.14% Multi-Realty Development Corporat
Slide 21: 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 3,512 stores nationwide (72 The SM Store, 1,611 specialty • Over 18,000 PHL tenants Retail retail outlets, 65 SM Supermarkets, 54 SM • More than 9,500 suppliers H
Slide 22: 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 5 out of the 11-member Board Eight directors have an average of 37 years of banking Experienced experience, including a for
Slide 23: Board of Directors
Board of Directors • With broad business and professional experience TERESITA T. SY JOSEFINA N. TAN ESTELA PERLAS - BERNABE NON-EXECUTIVE DIRECTOR INDEPENDENT DIRECTOR CHAIRPERSON First appointed to the Board in 2007 First appointed to the Board in 2022 First appointed to the Board in 1977 F
Slide 24: 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 CECILIA LUZ L. TAN JAIME C. YU RAFAEL G. AYUSTE JR. MARIA THERESA L. TAN General Manager of BDO Insurance, Inc. L
Slide 25: 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 26: Presentation Outline
Presentation Outline I. Overview II. Financial Highlights III. Ownership, Board and Management IV. Sustainability V. Awards and Citations 26 BDO Investor Presentation 2022 Results
Slide 27: 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 28: 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 29: 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 30: Sustainable Finance Leader since 2010
Sustainable Finance Leader since 2010 The first local bank to establish (in 2010) the risk-based Social and Environmental Management System (SEMS) policy in the country in partnership with the IFC Green Bond (USD150 million) in 2018: maiden issuance in the Philippines and East Asia Pacific ASEAN Sus
Slide 31: Sustainable Finance Framework
Sustainable Finance Framework Environmental Project Category Objectives Use of Proceeds • Renewable Energy • Green Buildings The net proceeds of Green/Sustainability Bonds • Clean Transportation • Achieve strategic resilience by incorporating will finance or refinance eight (8) • Resource Efficiency
Slide 32: Certified by Sustainalytics
Certified by Sustainalytics Green Bond Framework: “BDO’s Sustainable Finance Framework is robust, transparent and in alignment with the four core components of the Green Bond Principles (2021), Social Bond Principles (2021), Green Loan Principles (2021) and the ASEAN Sustainability Bond Standards (2
Slide 33: 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 34: Energy Transition Finance Statement
Energy Transition Finance Statement 34 BDO Investor Presentation 2022 Results
Slide 35: Presentation Outline
Presentation Outline I. Overview II. Financial Highlights III. Ownership, Board and Management IV. Sustainability V. Awards and Citations 35 BDO Investor Presentation 2022 Results
Slide 36: Awards & Recognition
Awards & Recognition Best Bank in the Philippines Alpha Southeast Asia FinanceAsia (2010-2016, 2018, 2020-2022) (2010-2021) AsiaMoney Forbes (2020) (2021) The Asian Banker Global Finance (2022) (2014-2017, 2019-2021) The Asset International Banker (2011, 2013-2021) (2020) The Banker Reader’s Digest
Slide 37: 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 38: 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 39: Thank you.
Thank you. www.bdo.com.ph 39 BDO Investor Presentation 2022 Results