cb and pnb company profile

8/2/2019 CB and PNB Company Profile

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Company Profile

Head Office AddressChina Bank Building 8745 Paseo de Roxas corner Villar Street, Makati City 1226 Philippines

China Banking Corporation (or China Bank) is the first privately-owned local commercial bank in thePhilippines. It was incorporated on July 20, 1920 and started its operations on August 16, 1920.China Bank went public on December 1, 1965. It was the first bank in Southeast Asia to processdeposit accounts on-line in 1969. It was also the first Philippine bank to offer telephone banking in1988. In August 26, 1991, the Bank was issued a license to engage in universal banking.

Its financial products and services include deposits and related services, international bankingservices, insurance products, loans and credit facilities, trust and investment services, cash

management services, and other services such as acceptance of various bill payments anddonations to charitable institutions.

It derives its revenue from interest income (deposit taking and lending/investment activities) andother income including service charges, fees & commissions, trading and foreign exchange gain,trust fees, income from acquired assets, and other miscellaneous income.

In 2010, its 90th year, China Bank posted a net income of P5.0 billion or 22% increase. It ranked asthe 8th largest commercial bank with assets of P257 billion as of December 2010 and was the 4thlargest bank in market value. The Banks capital strength as measured by its return on equity and


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assets of 15.37% and 2.10%, respectively, is among the best in the industry. China Bank declaredcash dividends of P12 per share plus 10% stock dividends, which when combined with theappreciation in share price gave its stockholders one of the best yields in the banking industry.China Bank was also the most active among the major banks in terms of network expansion,opening a total of 22 branches -- 253 for the main bank and 16 for China Bank Savings Inc --bringing the total branch network to 269 by year-end 2010.

In the same year, China Bank was again recognized by the Bureau of Treasury as one of the TopTen Best Performing Government Securities Eligible dealers (GSED) in the Primary Market for2010. China Bank was a silver awardee in corporate governance by the Institute of CorporateDirectors, recognizing its performance in protecting the rights and equitable treatment of itsshareholders, role of stakeholders, disclosure and transparency, and Board responsibilities.

For 2011, China Banks core strategies are to continue to expand and diversify its revenue sources,broaden its distribution channels, maximize total customer relationships and strengthen theorganization for better competitiveness.

China Bank History

2010 China Bank was included in the 30-stock PSE index (PSEi) starting May 12; Silver awardeeon corporate governance, one of the top-scoring Publicly Listed Company by the Institute

of Corporate Directors (ICD); celebrated its 90th anniversary. China Bank was once againrecognized by the Bureau of Treasury for its active role in money market and capitaldevelopment, naming the Bank as one of the "Top Ten Best Performing GovernmentSecurities Eligible Dealers (GSED) in the Primary Market for 2010."

2009 China Bank was cited by Stern Stewart & Co., a leading worldwide managementconsulting firm based in New York, as one of the top 100 listed companies throughoutSoutheast Asia in terms of delivering shareholder value for the period 2002-2008. ChinaBank was one of only 11 Philippine companies and one of two Philippine banks to beincluded in the ASEAN 100 Relative Wealth Added Index.The year also saw the opening of China Bank Cebu Business Center. Located at Cebu Business Park in Mabolo, Cebu City, itis the bank's 14th branch in Cebu and its main business hub in the region.

2008 China Bank offered its maiden issue of fixed rate long-term negotiable certificates of deposit (LTNCDs) to expand its asset base, gain access to long-term funding fromindividual and corporate investors, and to diversify the maturity profile of itsdeposits.From an initial amount of P3 bill ion, the floatation was upsized to the BSP-approved amount of P5 billion due to overwhelming response. Then on September 8,2008,China Bank's savings bank subsidiaryformally opened its doors to the publicas ChinaBank Savings, Inc. (ChinaBank Savings).

2007 China Bank embarked on new ventures: Signed a Bancassurance joint venture agreementwith Manulife, acquired Manila Bank, launched a raffle promo dubbed "P8.7 million at 87",and continued expanding its branch network.

2006China Bank was awarded Best Website Banking and Finance by the Philippine WebbyAwards. The Bank also launched its On-time Remittance Card, Private Banking Service,and Corporate Internet Banking module on the same year.

2005 China Bank is an Annual National Consumer Awardee for OutstandingCommercial Bank, given by Parangal ng Bayan. The Bank also received aNational Consumer Quality Award and Global Excellence Award for the samedistinction. To celebrate its 85th anniversary, the Bank gave away a total of P8.5

million in prizes for its "Grateful at 85" deposit and loan raffle promo. The same year,China Bank launched its "On-time Remittance" service and its multi-functional and


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superior internet and mobile banking channel, China Bank Online.

2004 China Bank was recognized as Outstanding Commercial Bank by ConsumersUnion of the Philippines and Most Outstanding Commercial Bank by thePhilippine Marketing Excellence Awards (National Awards). The same year, theBank launched Cash Management Services for businesses and corporate clients.

2002 China Bank hit the P100 bill ion mark in total resources.

2000 To celebrate the Bank's 80th anniversary, China Bank donated P1million to Tabang Mindanaw to help the victims of armed conflict inMindanao.

1999 China Bank's Treasury operations were automated using the Flexcube System. ChinaBank's subsidiary, China Bank Insurance Brokers, Inc. commenced operations.

1997 China Bank issued US Dollar Floating Rate Certificate of Deposit, the first access to foreigncapital markets. The Bank also launched the highly successful deposit promo "Cash andCars in a Plus".

1996 China Bank launched China Check Plus, an interest-earning currentaccount.

1995 China Bank celebrated its diamond anniversary and raised its authorized capitalto P2.54 billion.

1994 China Bank launched the 2 main products of consumer loans: HomePlus and AutoPlus.

1991 China Bank acquired its universal bank license, making it possible to offera more diverse selection of products and services.

1990 China Bank joined seven other banks in to create BancNet, the country'slargest ATM network. To strengthen its position among the major playersin the banking industry, China Bank transferred its corporate headquartersto its present location along Paseo de Roxas in Makati City.

1988 China Bank upgraded its on-line system and launched TellerCard, theBank's ATM banking service. The same year, the Bank introducedTellerPhone, the first telephone banking in the Philippines.


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1969 China Bank computerized its operations, becoming the first bank inSoutheast Asia to process both savings and current accounts on-line. TheBank opened a branch in Makati City where the Head Office building is nowlocated.

1948China Bank opened its first branch in Cebu City.

1945 China Bank resumes its operations after World War II on July 23, five months afterthe liberation of Manila. It played a key role in the post-war reconstruction andeconomic recovery by providing financial support to businesses and entrepreneurs.

1924 Due to the growth of the Bank's business, China Bank moved to a new office at the cornerof Dasmarias and Juan Luna Streets in Binondo.

1920 On August 16, China Bank opened its doors to the banking public at No.90 Rosario St. in Binondo, Manila with an initial capital of P10 million. Itwas the first privately-owned commercial bank in the Philippines. Bartopnotcher Don Albino Sycip was Chairman of the Board and businessleader and philanthropist Mr. Dee C. Chuan was President.

Mission Statement

We will be a leading provider of quality services consistently delivered to institutions, entrepreneurs,and individuals here and abroad, to meet their financial needs and exceed their rising expectations.

We will be a primary catalyst in the creation of wealth for our customers, driven by a desire to helpthem succeed, through a highly motivated team of competent and empowered professionals, guidedby in-depth knowledge of their needs and supported by leading-edge technology.

We will maintain the highest ethical standards, sense of responsibility, and fairness with respect toour customers, employees, shareholders, and the communities we serve.

Board of Directors and Advisor

Gilbert U. DeeVice Chairman of the

Board

Hans T.Sy

Chairmanof theBoard

Peter S. DeeDirector and Chief Executive Officer


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Henry Sy, Sr.Honorary Chairman and

Advisor to the Board

Joaquin T. DeeDirector

Jose T. SioDirector

Herbert T. SyDirector

HarleyT. Sy

Director

Ricardo R. ChuaDirector, Executive Vice

President and Chief Operating Officer

Pilar N. LiaoAdvisor to the

Board

Robert F. KuanIndependent Director

Alberto S. YaoIndependent Director

Dy TiongIndependent

Director

Awards and Distinctions


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2010o Silver Award - 2009 Corporate Governance Scorecard

Institute of Corporate Directorso One of the Ten Best Performing Goverment Securities Eligible Dealers (GSED)

Bureau of Treasury

o P38.8B San Miguel Brewery Bonds Issue - Domestic Bond Deal of the Year,Philippine Capital Markets and Best Local Currency Bond in Asia(China Bank acted as joint lead manager)IFR Asia Magazine and The Asset Magazine

2009o One of the 100 Best-Performing Companies in Southeast Asia - ASEAN 100

Relative Wealth Added (RWA) IndexStern Stewart & Co.,

2008o Outstanding Commercial Bank

Consumers Union of the Philippines (CUP)

2007o People's Choice Best Corporate Website

10th Philippine Web Awards (PWA)

o Outstanding Commercial BankConsumers Union of the Philippines (CUP)

2006 o Best Banking & Finance Website9th Philippine Web Awards (PWA)

o Cited No. 2 in Corporate Governance, next to PLDT (No. 1) and ahead of AyalaCorporation (No. 3)Institute of Corporate Directors

o Best Commercial BankAsian Brand Excellence

o Most Outstanding Real Estate Financing BankAsian Business and Marketing Awards

o Most Outstanding Real Estate LoanPhilippine Quality Awards for Business Excellence (National Awards)

o Best Managed Philippine Brand Real Estate FinancingPhilippine Star Brand

2005 o Outstanding Commercial BankParangal ng Bayan Award

o Outstanding Commercial BankGlobal Excellence Awards


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o Outstanding Commercial BankNational Consumers Quality Awards

o Outstanding Commercial BankConsumers Union of the Philippines (CUP)

2004o

Most Outstanding Commercial BankPhilippine Marketing Excellence Awards

2003 o Best Annual Reports CategoryManagement Association of the Philippines

2001 o 1st Place for the Tabang Mindanaw Print AdvertisementCarousel of Bank Ads (21st National Convention of Bankers Institute of thePhilippines)

1999 o Best Performer in Treasury Bonds in the Primary Market CategoryBest Performing Government Securities Eligible Dealers Award (Bureau of Treasury)

The Early Years

The Philippine National Bank was established as a government-owned banking institution on July 22, 1916 with headquarters inthe old Masonic Temple along Escolta, Manila. Its primarymandate was to provide financial services to Philippine industryand agriculture and support the government's economicdevelopment effort. World War I, then raging in Europe, generatedhuge demand for the country's major exports namely: sugar, copra,


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coconut oil, Manila hemp and tobacco. However, not much was being done to develop theindustries that produced these sought-after crops since access to credit facilities was limitedthen. To solve this problem, Henderson Martin, Vice Governor of the Philippines, together with Mr. Miguel Cuaderno (who later became Central Bank governor) drafted the charter for a national bank.

In February 4, 1916, Public Act 2612 was passed by the Philippine legislature providing for the establishment of the PNB to replace the small P1 million government-ownedAgricultural Bank. PNB's first head office was the Masonic Temple along Escolta, the then"Wall Street of the Philippines" in the bustling district of Sta. Cruz in Manila. AnAmerican, H. Parker Willis, was its first president.

"The First Universal Bank in the country"With PNB's establishment, Filipinos found a bank of their own.PNB was authorized to grant short and long-term loans toagriculture and industry. The Filipino farmers then could avail

of loans with interest between 8% to 10% per annum. PNB wasalso authorized to receive deposits, open foreign credits andrediscount bills. It was also given the special power to issuecirculating notes. As such, PNB functioned as the de factoCentral Bank of the country until 1949.

On July 24, 1916, PNB established its first branch in Iloilo.

In 1917, PNB marked its entry in the field of international banking when it opened its NewYork Branch. The following year, it established five more domestic branches and another overseas branch in Shanghai, China.

PNB briefly ceased operations in January 1942 but reopened the next month under thesupervision of Japanese authorities. After the Second World War, PNB reopenedimmediately and acquired the assets and assumed the liabilities of the banking division of the National Treasury.

With the establishment of the Central Bank in 1949, PNB's role as issuer of currency notes,custodianship of bank reserves, sole depository of government funds and clearing house of the banking system ceased."PNB launched the first on-line ElectronicData Processing System in the entire Far East"

In 1955, it was authorized to operate as an investment bank with powers to own shares andto issue debentures.


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In 1963, it established the National Investment and Development Corporation to engage primarily in long-term and equity financing of business ventures.

PNB transferred to its new Head Office along Escolta in 1966 and launched the first on-line Electronic Data Processing System in the entire Far East.

Between 1967 and 1979, PNB continued to expand its operations by opening offices inLondon, Singapore, Djakarta, Honolulu and Amsterdam. In the domestic field, it opened 14

provincial branches. It was also during this period that the Bank started the Dollar Remittance Program.

In 1980, PNB became the first universal bank in the country. However, it encounteredoperational difficulties in the mid-80s as a result of the economic downturn triggered by theassassination of Senator Benigno S. Aquino, Jr and had to be assisted by the government in1986.

Privatization of PNB

The privatization of the Bank started when 30 per cent of its outstanding stocks was offered to the

public and its stocks were listed in the stock exchangein 1989.

In 1992, PNB became the first Philippine bank toreach the P100 billion mark in assets.

Also in 1992, a second public offering of its shares

was issued to continue its privatization.In 1995, the Bank moved to its new headquarters at the PNB Financial Center in RoxasBoulevard, Pasay City.

In 1996, the Securities and Exchange Commission approved the Bank's new Articles of Incorporation and by-laws and the change in the status of PNB from a government-based toa private corporation with the control of the government reduced to 46 per cent. At theturnover rites on July 23, 1996, President Fidel V. Ramos declared:

PNB is the bank for the Filipino wherever he or she may be-- in the country's centersof commerce and industry, in the far reaches of the countryside, and even inmany places across the globe."

A New Beginning

In early 2000, the Lucio Tan Group became the single biggest private stockholder.

The group pumped in nearly P20 billion fresh capital in less than one year. This was done


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to emphasize the commitment of the new stockholders' group to the improvement of theBank's financial condition, which has been incurring losses in operations, due to poor assetquality.

In late-2000, the bank suffered a liquidity crisis and the National Government stepped in to

support the bank, implementing a capital restructuring of the Bank, and injecting PHP25bnof liquidity assistance.

In May 2002, the Government and the Lucio Tan Group sealed the Memorandum of Agreement (MOA) that embodies the provisions that will help turn the Bank around. Itincludes, among others, the settlement of government's liquidity assistance by way of increasing government's stake in the Bank from 16.58% to 44.98% that is now equal to theLucio Tan Group's 44.98% from 68%. At the same time, the bank started operating under a 5-year Rehabilitation program.

In August 2005, the government, as part of its privatization program, sold down a further 32.45% stake in the Bank via an auction. The Lucio Tan Group, as the other majorityholder exercised its right of first refusal, reducing the government share to 12.5% andraising that of the Lucio Tan Groups to 77.43%.

In June 2007, PNB settled its P6.1 billion loan to Philippine Deposit Insurance Corporation(PDIC), more than four years ahead of the loans due date. The loan repayment was a clear indication of the Banks renewed financial health.

In August 2007, the bank completed its Tier 1 follow-on equity offering where it raisedabout P5.0 billion in Tier 1 capital. Together with the sale of 89 million primary shares,71.8 million secondary shares owned by the national government thru PDIC and DOF weresold to the public and thus bringing about a complete exit of the government from PNB.

Since the inception of the rehabilitation program, PNB has exceeded the targets of the program. While the program called for profits starting 2005, the bank became profitable asearly as 2003. Within four years, PNB increased its net income sixteen times from P52million in 2003 to P820 million in 2006.With its successful exit from the governments Rehab program and the strong income

performance, PNB has demonstrated its ability to sustain its heightened competitiveness based on the three tenets of reducing non performing assets, strengthening core businessesand increasing profitability.The Bank remains as one of the largest banks in the country with a wide array of competitive banking products to answer for the diverse needs of its huge clientele includingmore than 2 million depositors.PNB maintains its leadership in the overseas remittance business with remittance centers inthe United States, Canada, England, Spain, the Netherlands, France, Germany, Austria,Italy, Hong Kong, Japan, Singapore, Malaysia and the Middle East countries.Through its subsidiaries, the Bank also engages in a number of diversified financial andrelated businesses such as remittance servicing, investment banking, non-life insurance,


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stock brokerage, leasing and financing and foreign exchange trading. The Bank, throughits associate, is also engaged in other services such as life insurance.

Mission Statement

We are a leading, dynamic Filipino financial services group with a global presence committed todelivering a whole range of quality products and services that will create value and enrich the livesof our customers, employees, shareholders and the communities we serve.

Vision 2010 and Beyond

To be the most admired financial services organization in the country in terms of:

Financial performance rank #1 or #2 in its businesses in terms of return on equity

Innovativeness in products, services, distribution and the use of cutting-edgetechnology

Customer perceptiono The preferred financial services providero The customer-centered organization with a passion for service excellence

Social responsibility the employer of choice, a good corporate citizen and partner in

nation-building

Long-term vision developing competitive advantage on a sustained basis by anticipatingchanges in customers preferences and in the manner of doing business

Board of DirectorsFlorencia G. Tarriela Chairperson

Carlos A. Pedrosa Vice Chairman

Florido P. Casuela Director

Estelito P. Mendoza Director

Omar Byron T. Mier Director

Feliciano L. Miranda, Jr. Director

Washington Z. SyCip Director

John G. Tan Director

Lucio C. Tan Director

Lucio K. Tan, Jr. Director

Deogracias N. Vistan Director

Jose Ngaw Board Advisor

Senior Management Team

Carlos A. PedrosaPresident & Chief Executive Officer

Horacio E. Cebrero III


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Executive Vice PresidentTreasury Group

Jovencio B. HernandezExecutive Vice PresidentRetail Banking Group

Carmen G. HuangExecutive Vice PresidentChief Financial Officer

Ma. Elena B. PiccioExecutive Vice PresidentInstitutional Banking Group

Alvin C. GoFirst Senior Vice President & Chief Legal CounselLegal Group

Edgardo T. NallasFirst Senior Vice PresidentHuman Resource Group

Emeline C. CentenoSenior Vice PresidentCorporate Planning and Research Division

Elfren Antonio S. SarteSenior Vice PresidentConsumer Finance Group

Awards and Accolades

PNB RECEIVES SSS BEST COLLECTING BANK FOR OFW REMITTANCESAWARD


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PNB is SSS Best Collecting Bank for OFW Remittances. PNB Global Operations Sector OIC andSVP John Medina (3rd from left) received the SSS Balikat ng Bayan Award as Best Collecting Bankfor OFW Remittances on behalf of PNB. Also present during the Awarding Ceremony are, from left:SSS Chairman Thelmo Cunanan, BSP Governor Amando Tetangco and SSS President and CEORomulo Neri.

PNB RECEIVES SSS BEST COLLECTING BANK FOR OFW REMITTANCES AWARD

Philippine National Bank (PNB) was recently named as Best Collecting Bank for OFW Remittances bythe Social Security System under its 2009 Balikat ng Bayan Awards. This is the fifth straight yearthat PNB was given this award. The distinction recognizes PNB

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