dbp initiation presentation final v5

PGS Initiation Stage Revalida PresentationPGS Initiation Stage Revalida Presentation30 March 2012, Public Governance Forum30 March 2012, Public Governance Forum

governancegovernance

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governancegovernanceandand

• IntegrityIntegrity• Love for the FilipinoLove for the Filipino• ExcellenceExcellence• TeamworkTeamwork• Service to othersService to others

CORE VALUESCORE VALUES

• Participative Participative Management Management

• Good Governance Good Governance • Transparency Transparency • People Development People Development

MANAGEMENT PHILOSOPHYMANAGEMENT PHILOSOPHY

Infrastructure and logisticsInfrastructure and logisticsInfrastructure and logisticsInfrastructure and logistics

MSMEsMSMEsMSMEsMSMEs

EnvironmentEnvironmentEnvironmentEnvironment

Social SectorSocial SectorSocial SectorSocial Sector

Infrastructure and logisticsInfrastructure and logisticsInfrastructure and logisticsInfrastructure and logistics

MSMEsMSMEsMSMEsMSMEs

EnvironmentEnvironmentEnvironmentEnvironment

Social SectorSocial SectorSocial SectorSocial Sector

MISSION STATEMENTMISSION STATEMENTWe will work for raising the level of competitiveness of the We will work for raising the level of competitiveness of the economy for sustainable growth. We will support economy for sustainable growth. We will support infrastructure development, responsible entrepreneurship, infrastructure development, responsible entrepreneurship, efficient social services and protection of the environment. efficient social services and protection of the environment. We will promote and maintain the highest standards of We will promote and maintain the highest standards of service and corporate governanceservice and corporate governance

ENABLING PARTNERSHIPS FOR DEVELOPMENTENABLING PARTNERSHIPS FOR DEVELOPMENT6565INNOVATIVE GROWTH & GOOD INNOVATIVE GROWTH & GOOD

GOVERNANCEGOVERNANCE

1935

National Loan National Loan and Investment and Investment

BoardBoard

Agricultural and Agricultural and Industrial BankIndustrial Bank

1947Rehabilitation Finance CorpRehabilitation Finance Corp

Gov’t trust Gov’t trust fundfund

Credit Credit facilitiesfacilities

Branch Branch BankingBanking

PRE-DBPPRE-DBP

1939

STARTSTART

Countryside Countryside FinanceFinance

1958

Reorganized into DBPReorganized into DBP

Expansion of network of Expansion of network of branchesbranches

Lending: housing, Lending: housing, SMEs and agriSMEs and agri

EXPANDEXPAND RESTARTRESTART

1986Clearing of Clearing of booksbooks

Transfer of non-Transfer of non-performing assetsperforming assets

1995Universal Universal

banking banking statusstatus

2009New logo for New logo for innovationinnovation

Mortgage loan, Mortgage loan, secured and secured and

unsecured loansunsecured loans

Investment banking, Investment banking, sales, merchant, sales, merchant,

trading and researchtrading and research

2011

2012

Pioneer in Pioneer in corporate corporate governancegovernance

P4.02B highest P4.02B highest ever core net ever core net incomeincome

SERVICES OFFERED

By 2016, a globally-recognized development financial institution, By 2016, a globally-recognized development financial institution, serving as a catalyst for a progressive and serving as a catalyst for a progressive and

poverty-free Philippinespoverty-free Philippines

VISION STATEMENTVISION STATEMENT

High cost producer with High cost producer with limited branch networklimited branch network

Development lending Development lending activities with low returnsactivities with low returns

Impending ERIPImpending ERIP

Losing of duopoly over Losing of duopoly over government depositsgovernment deposits

Branch expansionBranch expansion

Infrastructure, logistics and Infrastructure, logistics and PPP thrust of the Aquino PPP thrust of the Aquino AdministrationAdministration

Competent, well-trained and Competent, well-trained and motivated officers and staffmotivated officers and staff

Generation of private sector Generation of private sector deposits + OFW remittancesdeposits + OFW remittances

DEVELOPMENT BANK OF THE PHILIPPINES STRATEGY MAP 2016DEVELOPMENT BANK OF THE PHILIPPINES STRATEGY MAP 2016A globally-recognized development financial institution, serving as a catalyst for a progressive and

poverty-free Philippines

MISSIONMISSION-We will work for raising the level of competitiveness of the economy for sustainable growth-We will support infrastructure development, responsible entrepreneurship, efficient social services and protection of the environment-We will promote and maintain the highest standards of service and corporate governance.

MGT PHILOSOPHYMGT PHILOSOPHY-Participative Management-Good Governance-Transparency-People Development

-Integrity-Love for the Filipino-Excellence-Teamwork-Service to others


OPERATIONAL OPERATIONAL EXCELLENCEEXCELLENCE

DEVELOPMENTAL DEVELOPMENTAL THRUSTTHRUST






CORE VALUESCORE VALUESHow can we acquire, develop and How can we acquire, develop and

harness the skills and talent of our people harness the skills and talent of our people to attain our vision? Do we have sufficient to attain our vision? Do we have sufficient organizational development initiatives to organizational development initiatives to

pursue our mandate and grow? Are we pursue our mandate and grow? Are we providing the direction to our people to providing the direction to our people to

think developmental?think developmental?

What corporate governance practices What corporate governance practices should we implement to achieve should we implement to achieve

breakthrough results, comply with internal breakthrough results, comply with internal and external regulatory requirements and and external regulatory requirements and

strengthen bank operations?strengthen bank operations?

How do we intensify funding for priority How do we intensify funding for priority areas? What are we doing to be globally areas? What are we doing to be globally

recognized?recognized?

How do we improve our fund sourcing and How do we improve our fund sourcing and management?management?

Who are our stakeholders and how can Who are our stakeholders and how can they benefit from our services?they benefit from our services?

SOCIAL IMPACTSOCIAL IMPACT

FINANCEFINANCE

CONSTITUENCYCONSTITUENCY INTERNAL PROCESSINTERNAL PROCESS

ORGANIZATIONORGANIZATION



OrganizatioOrganizationn

Internal Internal ProcessProcess

ConstituencyConstituency

FinanceFinance

Social ImpactSocial Impact

Implement a structure for a learning & peak-performing organization.

Institutionalize a succession plan

and talent management

Recruit and retain the best

and the brightest

Update and align PMS toward a balanced and

efficient operations

Improve training programs for

head office and branch.

Strategic ObjectivesStrategic Objectives MeasuresMeasures InitiativesInitiatives

E. Implement a structure for a learning and peak-performing organization

5. % of home-grown to external hires

• Provide training as determined by the TNA and provide technology support

• Hiring program to meet targets and competency requirements

D. Institutionalize a succession plan and talent management

4. % of critical positions with a succession plan

• Maintain adequate pool of qualified candidates• Establish a succession planning system for all key

positions below the President up to AVP level

C. Update and align PMS toward a balanced and efficient operations

3. % of performance management system aligned to the strategy

• Update the PMS and align to vision and mission of the Bank

B. Improve training programs for head office and branch

2. % of T&D cost to total people cost

• Conduct priority training as determined by TNA• Review training needs and updated T&D programs to

meet the 5%

A. Recruit and retain the best and the brightest

1. Ranking in reputation as an employer/ institution

• Engage third party for competitiveness in compensation• Conduct image and reputation survey, CSR/Environment

policies• Enhance HR policies

GOVERNANCE GOVERNANCE SCORECARDSCORECARD

PGS INITIATION STAGE REVALIDAPGS INITIATION STAGE REVALIDA



OrganizationOrganization



FinanceFinance


Adopt responsive bank management & governance practices

Maintain good standing with

regulatory bodies

Streamline credit and other operating processes

Establish and utilize ICT as a

management tool and enabler

Carry out mandate of regulators in

audit, risk mgt & compliance

Implement a structure for a learning & peak-performing org

Institutionalize a succession plan and talent management

Recruit and retain the best and the brightest



Improve training programs for head office

and branch


J. Adopt responsive bank management and governance practices

13. Time needed to consolidate and release financial and operating reports

• Maintain, if not improve, timeliness, accuracy, reliability and relevance of financial and operating reports

I. Maintain good standing with regulatory bodies

12. Status with regulatory bodies

• Address all issues raised and prevent recurrent, establish policies where need (esp. policy on whistle blowing)

H. Carry out mandate of regulations in risk management and compliance

11. CAMELS Rating • Banking best practice on areas for improvement

G. Streamline credit and other operating process

10. % backlog in loan applications

• Review standards and monitoring systems

9. % of approved loans released

• Identify delays in loan releases and correct• Review policies needing updating

8. NPL to total loans• Make NPL Performance relate to PMS and strengthen

monitoring system

F. Establish and utilize ICT as a management tool and enabler

7. % completion of major ISSP projects

• Implement remaining major projects based on the 2011 ISSP

6. Number of new offsite ATMs

• Identify appropriate locations• Sustain responsiveness and usefulness of site








FinanceFinance


Build recognition as a preferred partner of

OFWs/investors

Support government priority programs


Maintain good standing with regulatory bodies


Establish and utilize ICT as a management tool and

enabler

Carry out mandate of regulators in audit, risk mgt

& compliance






Improve training programs for head office and branch


L. Support government priority programs

18. % of loan portfolio supporting government priority programs

• Cooperative Anti-Lending Program Facility• Agribusiness Development Programs• Tree Plantation Financing Programs• Sustainable Shelter Dev’t Financing Program• Green Finance Program• Financing Program for the Sanitation Sector• Financing Program for the Water Sector• Connecting Rural Urban Intermodal System Efficiency

(CRUISE) Program• Financing Program for Basic Education• Deliberate shift to development loans

17. % composition of loan portfolio according to government priority programs

K. Build recognition as a preferred partner of OFWs/investors

16. % increase in volume of new remittances from 2011 (US% 127.5M) • DBP Overseas Filipino Workers Reintegration Program

• Generate remittance volume from Overseas Filipinos and governmental/non-governmental organizations serving OFWs

• Establish DBP presence in key countries hosting overseas Filipinos

15. Total number of new countries with DBP’s presence

14. Number of new MOA signed with international tie-ups per year








FinanceFinance






enabler


& compliance







Build recognition as a preferred partner of OFWs/investors


Improved balance sheet & credit rating

Intensified deposit generation capabilities

Improved ODA funding and sourcing

Quality and balanced investment portfolio

Strategic Strategic ObjectivesObjectives MeasuresMeasures InitiativesInitiatives

P. Improved balance sheet and credit rating

25. Industry ranking in:-Assets:-Loans-Deposits-CAR

• New branches• Aggressive but prudent lending based on priorities• Raise new capital

O. Quality and balanced investment portfolio

24. % growth rate in loan portfolio (loans to borrowers) from 2011 (P121.51B)


N. Improved ODA funding and sourcing

23. Rates comparable to private commercial banks

• Reduce cost of funds• Renegotiate sources of funds• Increase number of branches

M. Intensified deposit generation capabilities

22. Total number of new branches

• Identify growth areas that can absorb new branches and recruit quality personnel

• Increase branches, empower branches with IT support, more new products, deposit campaigns, sales oriented organization

21. % growth rate of low cost deposit portfolio

20. Size of deposit base

19. Composition of deposit base Gov’t/Private/ LGUs

• More branches, mine existing private accounts, review compensating business policy (market base)








FinanceFinance

Social Social ImpactImpact





enabler


& compliance









Expanded access to social services for Filipinos (health, education, livelihood, housing, employment)






Q. Expanded access to social services for Filipinos (health, education, livelihood, employment, etc.)

27. Number of new development programs

• Cooperative Anti-Lending Program Facility• Agribusiness Development Programs• Tree Plantation Financing Programs• Sustainable Shelter Dev’t Financing Program• Green Finance Program• Financing Program for the Sanitation Sector• Financing Program for the Water Sector (498 waterless

LGUs and 780 water districts)• Financing Program for Basic Education• Continuous assessment of development needs• Offer competitive rates• Raise new capital• Renegotiate sources of funds• Increase branches, empower branches with IT support,

more new products, deposit campaigns, sales oriented organization


26. Cut between developmental/ commercial;retail/ wholesale









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DEVELOPMENTAL THRUSTDEVELOPMENTAL THRUSTOPERATIONAL OPERATIONAL EXCELLENCEEXCELLENCE

Expanded access to social services for Filipinos (health, education, livelihood, housing, employment)









Streamline credit and other operating

processes

Establish and utilize ICT as a management tool

and enabler

Carry out mandate of regulators in audit, risk

mgt & compliance

Implement a structure for a learning & peak-performing org





Improve training programs for head office

and branch

Alignment in the Aquino administration’s governance thrust of infra and PPPsAlignment in the Aquino administration’s governance thrust of infra and PPPs

early gainsearly gains

P29.98B in Infra and LogP29.98B in Infra and LogP29.98B in Infra and LogP29.98B in Infra and Log P7.08B in EnvironmentP7.08B in EnvironmentP7.08B in EnvironmentP7.08B in Environment P11.26B in Social ServicesP11.26B in Social ServicesP11.26B in Social ServicesP11.26B in Social Services

P14.44B in MSMEP14.44B in MSMEP14.44B in MSMEP14.44B in MSME P49.85B in Other Priority IndustriesP49.85B in Other Priority IndustriesP49.85B in Other Priority IndustriesP49.85B in Other Priority Industries P7.93B in Commercial LoansP7.93B in Commercial LoansP7.93B in Commercial LoansP7.93B in Commercial Loans

balanced with impactbalanced with impactbalanced with impactbalanced with impactNEW DBPNEW DBPNEW DBPNEW DBP

not just financial measuresnot just financial measuresnot just financial measuresnot just financial measures

early gainsearly gains

TRADITIONALTRADITIONALTRADITIONALTRADITIONAL

First time to include and identify social impact on DBP scorecardFirst time to include and identify social impact on DBP scorecard

dbp initiation presentation final v5

Documents

improved oda funding

improve training programs

maintain good standing

risk mgt

efficient social services

balanced investment portfolio

support infrastructure development

efficient operations