Best Asian Bank Investor... · Taiwan 8 824 Domestic Branches 14 International Offices 2,339...

11

Best Asian Bank

Investor Presentation

April 2014

Presentation Outline

I. OVERVIEW

II. FINANCIAL HIGHLIGHTS

III. OWNERSHIP, BOARD, AND MANAGEMENT

IV. AWARDS AND CITATIONS

4

• The Philippines’ largest bank as at 31 Dec 2013 with total assets of P1.7 Tn (USD 37.7 Bn).

• A full service universal bank with one of the widest networks of over 800 operating branches and more than 2,200 ATMs nationwide.

• Has one of the country’s strongest Board of Directors in terms of banking experience and corporate governance.

• Part of the SM Group, one of the country’s largest conglomerates.

About BDO

55

Deposit and

related products

Over-the-counter

transactions

Cross-selling

distribution platform

Cash management

services

Electronic banking

ATMs

Prepaid cards

Merchant acquiring

Remittances

Brokerage

Bancassurance

Investment

management

Unit investment

trust funds

Living trusts

Retirement funds

Special trusts /

custodianship

Auto

Mortgage

Credit cards

Personal loans

Corporate and

middle market

lending

Trade finance

Specialized lending

Financial Institutions

Cross-border

financing

Underwriting and

distribution of

Fixed income and

equity securities

Financial advisory

Project finance

Loan syndication

Wealth advisory

Customized portfolio

management

Fixed income

dealership

Foreign exchange

transactions

Portfolio

management

Liquidity

management

Direct lease, sale

and leaseback

arrangements

Installment paper

purchases

Receivable

discounting

and factoring

Full Service Bank

Branch

Banking

Transaction

BankingInsurance Trust Banking

Consumer

Lending

Corporate &

Institutional

Banking

Investment

Banking

Private

Banking

Treasury

Services

Leasing &

Finance

Complete range of financial products and services

66

Market Reach

Wide and extensive coverage in key areas

North

America

3

Europe

2

Middle

East

1

SEA, HK &

Taiwan

8

824 Domestic Branches

14 International Offices

2,339 Domestic ATM’s

as of 8 April 2014

Luzon 248

Philippines

824

M. Manila 427

Visayas 90

Mindanao 59

606

282 253 224 213162 125 118

645

911

BPI MBT LBP PNB China RCBC SECB DBP UBP

576

325

218

67 66 64 577995

773

BPI MBT SChart UCPB RCBC China HSBC DBP LBP

991

706

460

297 251 233354 299

1,017

1,345

MBT BPI LBP PNB China UBP RCBC DBP UCPB

1,3781,183

843

599427 412 391 347

437

1,678

MBT BPI LBP PNB DBP RCBC China UBP SECB

Total Assets

BDO Market Share – 17%

(in PHP billions)


(in PHP billions)


(in PHP billions)


(in PHP billions)

Source: Company data, consolidated statements of condition (SOC). Ranking as at 31 December 2013

Note: Financials prepared by banks under BSP’s SOC requirements differ slightly from reported financials under SEC

guidelines due to certain differences in accounting rules requested by the two authorities

Industry Ranking

Gross Customer Loans

Customer Deposits Assets Under Management

No. 1 among Philippine banks

7

Business Franchise

#1

Loans

#1

Deposits

#1

Remittance

#1

Trust and

Asset Mgt

#1

Private

Banking

Leading Trade

Services Provider1

Major Player in

Cash Management2

#1

Credit Cards3

#2

Leasing &

Finance

#1

Investment

Banking4

#1 Local

Insurance

Brokerage5

Market-leading positions in almost all business lines

Notes:1 According to The Asian Banker, Global Finance, The Asset, & Trade Finance Magazine2 According to The Asset3 In terms of cardholder base & merchant acquiring gross billings4 In terms of corporate issuances5 No. 1 among insurance brokers in terms of commissions earned for 2012; No. 3 in terms of premiums produced (No. 1 among local firms)

8

999

Acquired GE

Money Bank

Est. as Acme

Savings Bank

Acquired by

SM Group

KB license

Merged with Dao Heng

Bank Philippines

Acquired 1st e-Bank’s

banking business

Acquired

Banco

Santander

Philippines

Acquired UOB Philippines’

branch banking business

Merged with Equitable

PCI Bank.

Acquired Amex Savings

Bank Philippines

Assets

P13 BN

P36 BN

P77 BN

P121 BN

P149 BN

P234 BN

P862 BN

P1.0 TN

Commercial Bank Expansion

19761968 1994

P617 BN

Acquired Rural

Bank of San Juan

P1.2 TN P1.7 TN

U/KB license

Milestones

Expansion through organic growth and M&A

20011996 2002 2003 2005 2007 2009 20122010 2013 2014

Acquired Citi

Savings Bank

10

Trading Fact Sheet

Type Common Shares

Stock Ticker BDO

ISIN PHY077751022

Exchange Philippine Stock Exchage

Par Value P10.00

Outstanding No. of Shares 3,580,875,328

Foreign Owneship Up to 40%

Type Sponsored Level 1 ADR

ADR Ticker BDOUY

ISIN US05537Y3045

Ratio 1 ADR = 10 Ordinary Shares

Depositary Bank Deutsche Bank Trust Company Americas

Contact Details

ADR Broker Helpline

Tel (New York) + 1 212 250 9100

Tel (London) + 44 207 547 6500

Email [email protected]

ADR website www.adr.db.com

Depositary Bank's Local Custodian Deutsche Bank AG, Manila Branch

Stock Details

American Depositary Receipts (ADR) Program Details


I. OVERVIEW




12

(in PHP billion) 2009 2010 2011 2012 2013

Interest Income 48.8 49.9 50.5 54.0 56.6

Interest Expense 18.3 15.8 16.7 17.9 13.4

Net Interest Income 30.6 34.2 33.8 36.1 43.2

Non-interest Income 15.5 17.8 20.9 24.4 31.8

Fee Income 9.6 10.4 12.3 13.4 15.5

Trading & FX 3.6 5.8 5.6 8.2 12.8

Others 2.3 1.6 3.0 2.8 3.6

Gross Op Income 46.0 52.0 54.7 60.6 75.0

Operating Expense 32.1 34.8 36.3 39.5 43.2

Pre-Prov Op Profit 13.9 17.2 18.4 21.1 31.8

Provisions 6.2 6.7 6.1 4.9 7.0

Taxes 1.7 1.6 1.6 1.6 2.1

Net Income 6.0 8.8 10.5 14.5 22.6

2009 to 2013 Income Statement

13

(in PHP billion) 2009 2010 2011 2012 2013

Resources

Reserve Assets 176.6 229.6 203.5 201.2 491.5

Investment Securities 171.7 197.3 188.4 237.3 227.9

Gross Customer Loans 472.7 541.5 670.1 769.0 911.5

Investment Properties (net) 13.8 12.0 10.1 9.1 10.4

Other Assets 27.2 20.5 25.1 25.0 31.5

Total Resources 862.0 1,000.9 1,097.3 1,241.6 1,672.8

Liabilities

Deposits 694.7 782.6 858.6 931.6 1,345.3

Bills Payable/Sub-Notes 54.6 89.0 97.7 72.2 94.2

Other Liabilities 44.9 40.5 44.4 55.2 65.8

Total Liabilities 794.2 912.1 1,000.4 1,087.2 1,508.4

Total Capital 67.9 88.7 97.0 154.4 164.4

Total Liabilities & Capital 862.0 1,000.9 1,097.3 1,241.6 1,672.8

2009 to 2013 Balance Sheet

393

473

542

670

769

911

0

100

200

300

400

500

600

700

800

900

1,000

2008 2009 2010 2011 2012 2013

(P bn)

637695

783859

932

1,345

100

250

400

550

700

850

1,000

1,150

1,300

1,450

2008 2009 2010 2011 2012 2013

(P bn)

14

Key Growth Indicators

Gross Customer Loans Deposits

YoY Gr 32% 20% 15% 24% 15% 19% YoY Gr 43% 9% 13% 10% 9% 44%

Steady expansion in core businesses

Net Income

Sustained growth with record profits in 2013

6.0

8.8

10.5

14.5

22.6

0

2

4

6

8

10

12

14

16

18

20

22

24

2008 2009 2010 2011 2012 2013

(P bn)

2.2

15

16

Capital Adequacy Ratio (Consolidated)

9.9%9.0%

8.3%

10.0% 10.0%

15.2% 14.6%4.6%4.5%

4.1%

4.0%

5.6%

3.9%

1.2%

0%

5%

10%

15%

20%

2007 2008 2009 2010 2011 2012 2013

Tier 2

Tier 1

14.5%13.5%

12.4%

14.0%

15.6%

19.1%

17.1%

Min Total CAR

per Basel II

Min Tier 1 per

Basel II

Strong capital base to support growth

Comfortably above Basel III requirements

17

Tier 1 Capital Ranking of Philippine Banks(as of 31 December 2012)

World Rank Country Name of Tier 1 Capital

Current Previous Rank Bank (in USD mn)

251 396 1 BDO Unibank, Inc. 3,413

333 375 2 Metropolitan Bank & Trust 2,400

386 409 3 Bank of the Phil. Islands 1,985

642 645 4 Rizal Commercial Banking 902

655 706 5 Security Bank 871

663 n/a 6 China Bank 858

702 768 7 Union Bank of the Phils. 759

765 699 8 Philippine National Bank 644

986 n/a 9 Philtrust Bank 355

992 n/a 10 East West Banking Corp. 351

The Banker Top 1000 World Banks – Tier 1 Capital

18

Credit Ratings

Moody's Fitch Capital

Intelligence

Date 31 Mar 2014 16 May 2013 8 Oct 2013

Issuer/Debt Rating (IDR)

- Long Term Baa3 BB+ BB+

- Short Term Prime-3 B

Outlook Positive Stable Positive

Bank Financial Strength Rating D+ bb+ BBB-

(BFSR)/Individual/Viability Rating

Outlook Stable Stable

Baseline Credit Assessment (BCA) baa3

Adjusted BCA Rating baa3

Source: Moodys, Fitch and Capital Intelligence


I. OVERVIEW




20

Shareholder Structure

SM Investments Corp. 40.9%

PCD Nominee Corp. (Non-Filipino) 30.0%

PCD Nominee Corp. (Filipino) 11.2%

Multi-Realty Development Corporation 8.8%

Sybase Equity Investments Corporation 5.1%

Sub-Total, Top Shareholders 96.0%

Top Shareholders as of 31 Dec 2013

Source: Top 100 Shareholders as of 31 Dec 2013

Majority owned by the SM Group

21

Financial

Services

21

Property

Retail

Access to SM’s

customer network

• Almost 16,000 Philippine

tenants

• More than 5,000 suppliers

• 3.5 million average daily foot

traffic

• In-house business

• Home mortgage financing

for SM property projects

New business

opportunity

• Goodwill from the SM

franchise

• Joint product development

SM expertise

• Middle market knowledge

• Expertise in retail market

and real estate

Branch locations

• Branches, ATMs in SM malls

• Leading residential condominium

developer in Metro Manila in terms

of units sold

• Among the fastest growing

commercial, resorts and hotel

developers in the Philippines

• Largest local retail chain with 241

stores nationwide

• Dominant domestic mall

developer/operator - 48 malls with

GFA of almost 6.2 mn sqm

• Biggest domestic banking operations

• Interests in BDO and China Bank

The SM Group

Harnessing synergies with the country’s largest conglomerate

22

7 directors out of 11 have over 100 years’ combined experience

from both local and foreign banking institutions

2 directors are practicing attorneys who head their own law firms

Experienced

Bankers

Practicing

Lawyers

2 directors are successful businessmen who have made their

mark in the fields of retailing, real estate, and commercial

operations

Successful

Entrepreneurs

Board of Directors

One of the strongest Board of Directors in the industry

Board of Directors

Henry T. Sy Senior

Chairman Emeritus — first appointed to the Board in 1976

Founder and Chairman of the SM Group of Companies

Started his entrepreneurship career in 1958

Chairman of SMIC, SM Prime Holdings and SM Dev. Corp.

Jesus A. Jacinto Jr.

Vice Chairman — first appointed to the Board in 1996

Chairman and President of BDO Insurance Brokers

Chairman and President of Jaces Corp.

MBA Columbia University

Teresita T. Sy

Chairperson — first appointed to the Board in 1977

Serves as Director in multiple subsidiaries of BDO

Vice Chairperson of SMIC and Director of other SM Group

companies, including Multi-Reality Dev. Corp.

Antonio C. Pacis

Director — first appointed to the Board in 2004

Director of BDO Capital

Corporate lawyer since 1967

Degree from Harvard Law School

Josefina N. Tan


President of BDO Private Bank

Former Director of EPCIB from 2005 to 2007

Former Director of Banco de Oro from 2001 to 2005

Nestor V. Tan

President — first appointed to the Board in 1998

Holds Directorships of numerous BDO subsidiaries

Director of the Bankers Association of the Philippines

MBA Wharton School

Cheo Chai Hong


Director of UOB (Philippines), UOB Global Capital Private,

UOB (Thai) and Encus International

Head of Corporate Planning and International of UOB Group

Jimmy T. Tang

Independent Director — first appointed to the Board in 1984

Serves as Independent Director since 2002

Previously served as Director since 1984

Chairman and President of AVESCO Group of Companies

Henry T. Sy Jr.


Vice Chairman of SMIC and of SM Dev. Corp.

President of National Grid Corporation of the Philippines

Director in several companies within SM Group

Jones M. Castro Jr.


Served as Head for South Asia and SEA at Wells Fargo Bank

MBA Stanford University

Jose F. Buenaventura


Senior Partner of Romulo Mabanta Buenaventura Sayoc & De

Los Angeles Law Offices since 1976

Master of Laws from Georgetown University Law Center

Christopher A. Bell-Knight

Director — re-elected to the Board in 2013

Previously served as BDO Director from May 2005 - Sep 2010

Former VP and Country Head of the Bank of Nova Scotia

Associate of the Chartered Institute of Bankers - British

With broad business and professional experience

23

Arthur L. Tan

Head — IT Operations

With BDO since 2002

15-year banking experience

Dennis B. Velasquez

Head — Central Operations

With BDO since 1995


Evelyn L. Villanueva

Head — Risk Management

With BDO since 2002


Evelyn C. Salagubang

Head — Human Resources

With BDO since 2007

18-year experience in HR

Luis S. Reyes Jr.

Head — IR & Corplan

With BDO since 2003


Rafael G. Besa

Head — Marketing

With BDO since 2007


Ricardo V. Martin

Head — Compliance & Legal

With BDO since 2001


Lucy Co Dy

Head — Comptrollership

With BDO since 1985


Corporate Support

Walter C. Wassmer

Head — Business Lending

With BDO since 1997


Rolando C. Tanchanco

Head — Consumer Lending

With BDO since 2004


Jaime C. Yu

Head — Branch Banking

With BDO since 1997


Pedro M. Florescio III

Head — Treasury

With BDO since 2001


ServicesIntermediation

Nestor V. Tan

President With BDO since 1997


Ador A. Abrogena

Head — Trust and Investments

With BDO since 1990


Jonathan C. Diokno

Head — Remittance Origination

With BDO since 2001


Josefina N. Tan

Head — Private Banking

With BDO since 2003


Eduardo V. Francisco

Head — Investment Banking

With BDO since 1999


Emmanuel T. Narciso

SVP — Transaction Banking

With BDO since 2011


Evylene C. Sison

Head — Asset Management

With BDO since 2010


Maria Theresa L. Tan

General Manager — BDO Insurance

With BDO since 2009

20-year banking and insurance experience

Geneva T. Gloria

Head — Remittance Distribution

With BDO since 2003


Senior Management Team

With extensive professional banking expertise

24

BDO UNIBANK, INC.

PHILIPPINE PARENT BANK

With equity investments in allied and non-allied enterprises

Organizational Structure

Financial Companies Insurance Companies Real Estate Companies Service Companies

BDO Private Bank, Inc.

(100%)

BDO Capital & Investment

Corporation (100%)

BDO Securities

Corporation (100%)

CBN Grupo

International

Holdings B.V. (60%)

Averon Holdings

Corporation (100%)

PCIB Securities, Inc.

(100%)

Express Padala (HK) Ltd.

(100%)

Express Padala Frankfurt

GmbH (100%)

BDO Leasing and Finance,

Inc. (87%); BDO Capital &

Investment Corporation

(11.11%)

BDO Rental, Inc.

(100%)

Citibank Savings, Inc.

(99.99%)

ArmstrongSecurities,

Inc. (80%)

BDO Remit (Italia)

S.p.A. (100%)

BDO Remit Limited

(100%)

BDO Remit (Macau)

Ltd. (100%)

BDO Remit (USA), Inc.

(100%)

BDO Insurance Brokers,

Inc. (100%)

Generali Pilipinas Holding

Co., Inc. (BDO – 38.05% &

BDO Cap – 1.95%)

BDORO Europe Ltd.

(100%)

Equimark-NFC

Development Corp. (60%)

SM Keppel Land, Inc.

(50%)

Taal Land, Inc.

(33%)

NorthPine Land, Inc.

(20%)

Manila North Tollways Corp.

(12%)

BDO Strategic Holdings Inc.

(100%)


I. OVERVIEW




27

“. . . the first time Finance Asia

has given this award to a

Philippine bank . . .”

Institutional Awards and Citations, 2013-2014

Best Asian Bank

Best Bank in the Philippines

EUROMONEY


28

29

Best Private Bank in the Philippines


30

Best Investment Bank in the Philippines


31

Best Bond House

Institutional Awards and Citations, 2013

Best Equity House

32

Platinum Award


Annual

Recognition

Excellence in Corporate Governance

33

Platinum Award Most Organized Investor Relations


Among the Best Senior Management IR

Support

Among the Best Investor Relations Companies in the

Philippines

Excellence in Investor Relations

34

Individual Awards and Citations, 2013

Nestor V. Tan

One of Asia’s Best CEOs

(Investor Relations)

Luis S. Reyes, Jr.

One of the Best IR

Professionals (Phils)

Pedro M. Florescio

One of Asia’s Best CFOs


Excellence in Investor Relations

35

Teresita T. Sy

Chairperson - BDO

One of Asia’s Best CEOs


Among the 8 Most Powerful

Women in Southeast Asia

One of Forbes Asia’s

Most Powerful Women

Individual Awards and Citations, 2013-2014

36

Product/Transaction Awards & Citations, 2013

Best Retail Bank in the Philippines

37


Fund House of the Year

BDO Trust and Investments Group

38

Best in Trade

Finance

Leading Counter-

party Bank


39

Best FX Bank/Provider


40

Gold Trusted BrandCredit Card Initiative

of the Year


Thank you.

www.bdo.com.ph

Best Asian Bank Investor... · Taiwan 8 824 Domestic Branches 14 International Offices 2,339...

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Transcript of Best Asian Bank Investor... · Taiwan 8 824 Domestic Branches 14 International Offices 2,339...