investor presentation - bdo · 2018. 4. 25. · bdo’sactual results or developments may differ...
TRANSCRIPT
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October 2016
Investor Presentation
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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 Presentation constitutes a solicitation, offer, opinion, or recommendation by
BDO to buy or to sell any securities or financial instrument or to provide any investment service or investment advice.
The information contained in this Presentation is based on carefully selected sources believed to be reliable but no
representation or warranty as to its accuracy or completeness is made. All statements in this Presentation, other than
statements of historical facts, that address activities, events, or developments that BDO expects or anticipates will or
may occur in the future (including but not limited to projections, targets, estimates and business plans) are forward-
looking statements. BDO’s actual results or developments may differ materially from those expressed or implied in these
forward-looking statements as a result of various factors and uncertainties, including but not limited to price fluctuations,
actual demand, exchange rate fluctuations, market shares, competition, changes in legal, financial and regulatory
frameworks, international economic and financial market conditions, political risks, cost estimates, and other risks and
factors beyond our control. Your use of the Presentation shall be at your sole risk and you shall form your own
conclusions as to the reliability of any information presented and as to any conclusions to be drawn therefrom. BDO shall
not be directly or indirectly liable, in any way, for any inaccuracies, errors, or omissions in the Presentation , including but
not limited to any quotes or financial data contained therein, nor for any damages resulting therefrom. Any
opinion/data/forward-looking statements herein reflected may be subject to change by BDO without notice.
Investor Relations & Corplan:
4F South Tower, BDO Corporate Center
7899 Makati Avenue, Makati City
Metro Manila 0726, Philippines
Phone: (632) 840 7000 (loc. 6069)
Fax: (632) 878 4151
Email: [email protected]
Website: www.bdo.com.ph
mailto:[email protected]://www.bdo.com.ph/
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3
Presentation Outline
I. Overview 4
II. Financial Highlights 17
III. Ownership, Board and
Management
27
IV. Environmental, Social and
Governance
33
V. Awards and Citations 40
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4
• The Philippines’ largest bank with total assets of P2.16 Tn (USD46.39 Bn).
• A full-service universal bank with one of the widest distribution networks consisting of 1,084 operating branches and over 3,300 ATMs nationwide.
• Part of the SM Group, one of the country’s largest conglomerates.
About BDO
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5
Milestones• Expansion through organic growth and M&As
Commercial Bank Expansion
1967
KB license
1994
P77 BN
Merged with Dao Heng
Bank Philippines
2001
P36 BN
U/KB license
1996
Acquired 1st e-Bank’s banking business
P121 BN
2002
Acquired UOB Philippines’ branch banking business
P234 BN
2005
P862 BN
Acquired GE Money Bank
2009
Acquired Rural Bank of San Juan’s banking business
P1.2 TN
2012 2014
Acquired Citibank Savings,
DB Trust and Real Bank
P1.9 TN
Acquired One
Network Bank
2015
Acquired by SM Group
1976
Assets
P13 BN
2003
Acquired Banco Santander Philippines
P149 BN P617 BN
2007
Merged with Equitable PCI Bank.
Acquired Amex Savings Bank Philippines
2016
Joint Ventures with Nomura Securities, and Mitsubishi Motors
Phils./Sojitz/JACCS; Acquired exclusive franchise of Diners Club Int’l and full
control of Generali Pilipinas Life (renamed as BDO Life Assurance)
P2 TN
Est. as
Acme
Savings
Bank
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6
Full Service Bank• Complete range of financial products and services
Corporate &
Institutional
Banking
Corporate and middle market
lending
Trade finance
Specialized lending
Financial Institutions
Cross-border financing
Consumer
Banking
Auto
Mortgage
Credit cards
Personal loans
Merchant payment
processing
Leasing &
Finance
Direct lease, sale and
leaseback
arrangements
Installment paper
purchases
Receivable discounting
and factoring
Branch
Banking
Deposit & related products
Over-the-counter
transactions
Cross-selling distribution
platform
Treasury
Services
Fixed income dealership
Foreign exchange
transactions
Portfolio management
Liquidity management
Transaction
Banking
Cash management
Electronic banking
ATMs
Prepaid cards
Merchant acquiring
Remittances
Trust
Banking
Investment management
Unit investment trust funds
Living trusts
Retirement funds
Special trusts / custodianship
Private
Banking
Wealth advisory
Customized portfolio
management
Investment
Banking
Underwriting & distribution of
fixed income &
equity
securities
Fin’l advisory
Project finance
Loan syndication
Stock
Brokerage
Equities trading
Insurance
Brokerage
Bancassurance
Rural
Banking
Salary loans
Agricultural & business loans
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7
Market Reach
• Wide and extensive coverage in key areas
26 International Offices
Europe - 1211 Remittance Offices
1 Representative Office
Middle East - 1Representative Office
SEA, China, HK, Taiwan,
Korea & Japan - 11 1 Full-service Branch
6 Remittance Offices
4 Representative Offices
North
America - 2 Remittance Offices
Philippines - 1,084
Branches
As of 15 October 2016
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8
Domestic Distribution Network
BDO ONB Total
Luzon 298 5 303
Metro
Manila488 1 489
Visayas 106 12 118
Mindanao 77 97 174
Total
Branches969 115 1,084
As of 15 October 2016
• With longer banking hours, Saturday banking in select commercial
areas, and weekend banking for over 150 mall based branches
• Widest market reach complemented by over 3,300 ATMs and
electronic channels
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9
Business Franchise
#1
Loans
#1
Deposits#1
Remittance
#1
Trust and
Asset Mgt
#1
Private
Banking
Leading Trade
Services Provider2Major Player in
Cash Management3
#1
Rural
Banking
#2
Leasing &
Finance
#1
Investment
Banking4
#1 Local
Insurance
Brokerage5
• Market-leading positions in almost all business lines
#1
Credit
Cards1
Notes:1 In terms of cardholder base, merchant acquiring gross billings, and credit card receivables2 According to The Asset, & Asian Banking and Finance3 According to The Asian Banker, Asian Banking and Finance, Alpha South East Asia4 In terms of corporate issuances5 Among insurance brokers in terms of premiums produced and commissions earned
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10
Industry Ranking
Total Assets
(in PHP billions)
Source: Company data, consolidated statements of condition (SOC). Ranking as at 30 June 2016
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
Gross Customer Loans
Customer Deposits Assets Under Management
• No. 1 among Philippine banks
(in PHP billions) (in PHP billions)
(in PHP billions)
BDO Market Share – 19% BDO Market Share – 35%
BDO Market Share – 22%BDO Market Share – 18%
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BDO Private Bank, Inc. 100%
BDO Capital & Investment Corporation 100%
BDO Leasing and Finance, Inc. BDO -87.43%, BDO Capital – 1.11%
One Network Bank, Inc. (A Rural Bank) 99.75%
BDO Remit (USA), Inc. 100%
BDO Remit (Japan) Ltd. 100%
Express Padala Frankfurt GmbH 100% (a)
BDORO Europe Ltd. 100%
BDO Remit (Can.) Ltd. 100%**
Express Padal (HK) Ltd. 100% (c)
BDO Remit(Italia) S.p.A. 100% (a)
BDO Remit Limited 100% (c)
BDO Remit (Macau)Limited 100%
CBN Grupo International Holdings B.V. 60%
Averon Holdings, Inc. 100%
BDO Rental, Inc. 100%
MMPC Auto Financial Services Corp. 40%
BANKING / FINANCE
BDO Unibank, Inc.
Armstrong Securities 80%
REMITTANCES INSURANCE PROPERTY
BDO Nomura Securities, Inc. 51%
BDO Strategic Holdings, Inc. 100%
BDO Insurance Brokers, Inc. 100%
BDO Life Assurance Holdings Corp. BDO-98.05%, BDO Capital-1.95%
PCI Insurance Brokers, Inc. 100% (a)
Equimark-NFC Development Corp. 60%
SM Keppel Land, Inc. 50%
NorthPine Land, Inc. 20%
Taal Land, Inc. 33% (b)
Unicorn First Properties, Inc. 35% (a)
OTHERS
Manila North Tollways Corp. 12.4%
PCI Travel Corporation 35% (a)
Venture Industry for Business Enterprises 24% (a)
BDO Life Assurance Company, Inc. (formerly Generali Pilipinas Life Assurance Co., Inc.)100%
• With equity investments in allied and non-allied enterprises
Organizational Structure
* SMICs effective ownership (includes
direct & indirect ownership)** not yet operational.
- Stockholders of BDO
- Financial Allied Subsidiary
- Financial Allied Affiliate
- Non-Financial Allied Subsidiary
- Non-Allied Undertaking
- Subsidiary/Affiliates of BDO Subsidiaries
- Non-Financial Allied Affiliate
(a) For dissolution(b) For sale(c) For merger
BDO Securities Corporation 100%
PCIB Europe,S.p.A 100% (a) CBN London
Ltd. 100%
CBN Greece S.A. 99.8%
CBN Ireland Remittance Center Ltd. 100%
CBN Remittance Center S.A. 99.99%
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The Banker Top 1000 World Banks – Tier 1 Capital 2015
12
USD Million
239
Rank Origin Bank
243
240
242
245
246
247
248
4,231
4,220
4,219
4,174
4,169
4,079
4,050
4,022
4,007
4,005
0 1000 2000 3000 4000
Grupo Financiero Banorte
Chugoku Bank
Alfa Bank
Xiamen International Bank
BDO Unibank
Bank ABC
Popular
Baoshang Bank
Abanca Corporacion Bancaria
IDBI
241
244
http://freeflagicons.com/country/russia/round_icon/http://freeflagicons.com/country/russia/round_icon/
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The Banker Top Philippine Banks – Tier 1 Capital 2015
13
USD MillionBank
1
Rank
2
3
4
5
6
7
8
Acronyms:
BPI Bank of the Philippine Islands CHIB China Banking Corp.
MBT Metropolitan Bank& Trust SECB Security Bank Corp.
PNB Philippine National Bank LBP Land Bank of the Philippines
RCBC Rizal Commercial Banking Corp.
4,169
3,348
2,645
1,575
1,052
1,046
1,034
1,005
0 1000 2000 3000 4000
MBT
BPI
PNB
LBP
SECB
RCBC
CHIB
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14
Credit Ratings
Moody’s FitchCapital
Intelligence
14-Oct-2016 21-Apr-2016 26-Aug-2016
Foreign Currency Bank
Deposits/Issuer/Debt Rating (IDR)
Long Term Baa2 BBB- BBB-
Short Term Prime-2 F3 A3
Outlook Stable Stable Positive
BCA/Viability/Financial Strength Rating
Baseline Credit Assessment (BCA) baa2
Adjusted BCA Rating baa2
Viability Rating bbb-
Financial Strength Rating BBB-
Outlook Stable
Counterparty Risk (CR) Assessment
Long Term Baa1(cr)
Short Term P-2 (cr)
Source: Moody’s, Fitch and Capital Intelligence
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Trading Fact SheetStock Details
Type Common Shares
Stock Ticker BDO
ISIN PHY077751022
Exchange Philippine Stock Exchange
Par Value P10.00
Outstanding No. of Shares* 3,648,645,468
Foreign Ownership Up to 40%
American Depositary Receipts (ADR) Program Details
Type Sponsored Level 1 ADR
ADR Ticker BDOUY
ISIN US05537Y305
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
*As of October 11, 2016
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Presentation Outline
I. Overview 4
II. Financial Highlights 17
III. Ownership, Board and
Management
27
IV. Environmental, Social and
Governance
33
V. Awards and Citations 40
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1H16 Income Statement
(in PHP billion) 1H16 1H15 YoY%
Interest Income 39.9 34.3 16.6%
Loans & Other Receivables 35.6 30.0 18.4%
Interest Expense 8.2 7.2 14.0%
Net Interest Income 31.7 27.1 17.2%
Non-interest Income 22.1 16.4 34.6%
Fee Income 10.6 9.0 18.2%
Trading & FX 2.9 5.4 -46.0%
Others 8.6 2.1 316.5%
Gross Operating Income 53.8 43.5 23.8%
Operating Expense 35.0 26.7 30.9%
Pre-Provision Operating Profit 18.9 16.8 12.5%
Provisions 1.7 2.1 -18.3%
Income bef. Pre-Acquisition 17.1 14.7 -
Pre-Acquisition Income -0.5 0.0 -
Taxes 3.4 2.9 17.0%
Net Income 13.2 11.7 12.9%
BDO Conso
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18
(in PHP billion) 2Q16 2Q15 YoY%
Resources
Reserve Assets 459.3 454.2 1.1%
Investment Securities 267.3 239.9 11.4%
Gross Customer Loans 1,368.2 1,126.6 21.4%
Investment Properties 15.0 12.5 20.0%
Other Assets 45.8 40.0 14.5%
Total Resources 2,155.6 1,873.2 15.1%
Liabilities
Deposits 1,771.6 1,520.4 16.5%
CASA 1,230.2 1,000.2 23.0%
Bills Payable/Sub-Debt 92.4 108.5 -14.8%
Insurance Contract Liab. 17.9 0.0 -
Other Liabilities 62.5 63.8 -2.0%
Total Liabilities 1,944.5 1,692.7 14.9%
Total Capital 211.1 180.6 16.9%
Total Liabilities & Capital 2,155.6 1,873.2 15.1%
BDO Conso
2Q16 Balance Sheet
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19
Loan Growth
• Outpacing industry
Industry
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20
Deposits
(in P bn)
CASA YoY∆ 13% 12% 31% 24% 19% 23%
CASA Ratio 62% 64% 58% 64% 68% 69%
• Sustained growth in low-cost deposits
• With one of the highest CASA ratios
Total
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21
Net Income• Sustainable growth from core income sources
• Continued investments in products and distribution
(in P bn)
-
• Ratios above current Basel III standards
Capital Adequacy Ratio
22
Note:
Minimum CET1 and
Tier 1 ratios under
Basel III are inclusive
of the 2.5% capital
conservation buffer.
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23
2011 to 1H16 Income Statement(in PHP billion) 2011 2012 2013 2014 2015 1H16
Interest Income 50.5 54.0 56.6 63.6 72.1 39.9
Interest Expense 16.9 17.9 13.4 12.4 15.2 8.2
Net Interest Income 33.6 36.1 43.2 51.2 57.0 31.7
Non-interest Income 20.9 24.4 31.8 29.5 31.9 22.1
Fee Income 12.3 13.4 15.5 18.0 19.4 10.6
Trading & FX 5.6 8.2 12.8 7.1 7.2 2.9
Others 3.0 2.8 3.6 4.4 5.4 8.6
Gross Operating Income 54.5 60.5 75.0 80.7 88.9 53.8
Operating Expense 35.8 39.5 43.3 48.5 55.1 35.0
Pre-Prov Operating Profit 18.7 21.0 31.8 32.2 33.8 18.9
Provisions 6.1 4.9 7.0 5.1 3.0 1.7
Income bef. Pre-Acquisition - - - - - 17.1
Pre-Acquisition Income - - - - - -0.5
Taxes 1.7 1.6 2.1 4.2 5.7 3.4
Net Income 10.8 14.5 22.6 22.8 25.0 13.2
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2011 to 2Q16 Balance Sheet(in PHP billion) 2011 2012 2013 2014 2015 2Q16
Resources
Reserve Assets 203.5 201.2 491.5 488.4 461.7 459.3
Investment Securities 188.4 237.3 227.9 221.5 225.8 267.3
Gross Customer Loans 670.1 769.0 911.5 1,089.4 1,279.4 1,368.2
Investment Properties 10.1 9.1 10.4 13.9 14.6 15.0
Other Assets 22.1 25.0 31.5 50.4 49.9 46.0
Total Resources 1,094.2 1,241.6 1,672.8 1,863.6 2,031.3 2,155.6
Liabilities
Deposits 858.6 931.6 1,345.3 1,492.3 1,663.9 1,771.6
Bills Payable/Sub-Notes 97.7 100.4 97.3 110.4 107.6 92.4
Insurance Contract Liab. - - - - - 17.9
Other Liabilities 44.1 55.2 65.8 81.3 60.2 62.5
Total Liabilities 1,000.4 1,087.2 1,508.4 1,684.0 1,831.6 1,944.5
Total Capital 93.8 154.4 164.4 179.7 199.6 211.1
Total Liabilities
& Capital1,094.2 1,241.6 1,672.8 1,863.6 2,031.3 2,155.6
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Financial Performance Indicators2011 2012 2013 2014 2015 1H16
Profitability
Return on Ave. Common Equity 12.4% 12.0% 14.3% 13.6% 13.6% 13.1%
Return on Average Assets 1.0% 1.3% 1.6% 1.3% 1.3% 1.3%
Margins and Liquidity
Net Interest Margin (NIM) 3.5% 3.4% 3.3% 3.2% 3.2% 3.2%
Loan to Deposit Ratio 78.1% 82.5% 67.8% 73.0% 76.9% 77.2%
Liquid Assets to Total Assets 35.8% 35.3% 43.0% 38.1% 33.8% 33.7%
Cost Efficiency
Cost to Income Ratio 65.6% 65.2% 57.7% 60.1% 62.0% 64.9%
Cost to Assets Ratio 3.4% 3.4% 3.0% 2.7% 2.8% 3.3%
Asset Quality
NPL Ratio 3.4% 2.8% 1.6% 1.3% 1.2% 1.3%
NPL Cover 106.0% 125.7% 170.7% 188.4% 165.8% 153.0%
Capital
CET1 12.4% 11.3% 11.3%
Tier 1 Ratio 10.0% 15.2% 14.6% 12.8% 11.7% 11.6%
Capital Adequacy Ratio 15.6% 19.1% 15.8% 14.6% 13.3% 13.1%
Basel II Basel III
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26
Presentation Outline
I. Overview 4
II. Financial Highlights 17
III. Ownership, Board and
Management
27
IV. Environmental, Social and
Governance
33
V. Awards and Citations 40
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27
Shareholder Structure
• Majority owned by the SM Group
*Number of chares outstanding subsequently increased to 3,648,645,468, as of October 11, 2016 due to the purchase of additional common shares by
the Bank’s eligible senior officers pursuant to the Banks employee stock option/grant program
As of 30 September 2016
Name Nationality Shareholdings
Percentage
of
Ownership
SM Investments Corp. Filipino 1,463,657,368 40.12%
PCD Nominee Foreign 1,108,303,788 30.38%
PCD Nominee Filipino 585,397,211 16.04%
Multi-Realty Development Corporation
Shoemart, Inc.
Filipino
Filipino
236,476,739
75,254,191
6.48%
2.06%
Sub-Total, Top Shareholders 95.08%
Total Shares Outstanding* 3,648,487,878
Source: Top 100 Shareholders as of 30 September 2016
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Financial
Services
Property
Retail
Access to SM’s customer
network
• Over 17,000 PHL tenants
• More than 9,500 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
• One of the largest integrated
property developer in Southeast
Asia by market capitalization
• Dominant domestic mall
developer/operator - 58 malls with
GFA of 7.5 mn sq m
• Largest local retail chain with 328
stores nationwide
• Increased presence in
discretionary retail with 1,429
outlets
• Biggest domestic banking
operations
• Interests in BDO and China Bank
The SM Group
• Harnessing synergies with the country’s largest conglomerate
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7 directors out of 11 have an average of 35 years of banking
experience, including a former Partner and Head of Asia
Financials Research at Goldman Sachs
2 directors are practicing attorneys, and another one is a
Philippine bar topnotcher and member of the State Bar of
New York
• One of the strongest Board of Directors in the industry with extensive
banking and finance, legal and business background
Experienced
Bankers
Practicing
Lawyers
1 director is a successful businessman who has made his
mark in the field of retailing
Successful
Entrepreneur
Board of Directors
29
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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
Director — first appointed to the Board in 2007
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 and CEO — first appointed to the Board in 1998
Holds Directorships of numerous BDO subsidiaries
Director of the Bankers Association of the Philippines
MBA Wharton School
Dioscoro--Roy I. Ramos
Independent Director — first appointed to the Board in 2016
CIO of RY&S Investments Ltd., Hong Kong since 2011
Former Partner and Head of Asia Financials Research from
1994 to 2011 at Goldman Sachs
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
Gilberto C. Teodoro
Independent Director – first appointed to the Board in 2014
Served as Secretary of National Defense from 2007-2009
Masters of Laws from Harvard Law School
Topnotcher, 1989 Philippine Bar Examinations
Jones M. Castro Jr.
Independent Director — first appointed to the Board in 2012
Served as Head for South Asia and SEA at Wells Fargo Bank
MBA Stanford University
Jose F. Buenaventura
Independent Director — first appointed to the Board in 2013
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
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Corporate Support
Senior Management Team • With extensive professional banking expertise
Anthony Chua
Head — Global Operations
With BDO since 2014
Over 30 years of banking experience
Dennis B. Velasquez
Head — Central Operations
With BDO since 1995
Over 30 years of banking experience
Evelyn C. Salagubang
Head — Human Resources
With BDO since 2007
Over 20 years experience in HR
Lucy Co Dy
Head — Comptrollership
With BDO since 1985
Over 30 years of banking experience
Ricardo V. Martin
Head — IT Group
With BDO since 2001
Over 30 years of banking experience
Edwin Romualdo G. Reyes
Head — Transaction Banking
With BDO since 2015
29-year banking experience
Evelyn L. Villanueva
Head — Risk Management
With BDO since 2002
Over 30 years of banking experience
Luis S. Reyes Jr.
Head — IR & Corplan
With BDO since 2003
Over 30 years of banking experience
Rebecca S. Torres
Head — Compliance
With BDO since 1978
Over 30 years of banking experience
Alvin C. Go
Head — Legal
With BDO since 2013
In the practice of law for 30 years
Maria Theresa L. Tan
General Manager — BDO Insurance
With BDO since 2009
22-year banking and insurance experience
Josefina N. Tan
Head — Private Banking
With BDO since 2003
Over 30 years of banking experience
Eduardo V. Francisco
Head — Investment Banking
With BDO since 1999
27-year banking experience
Ador A. Abrogena
Head — Trust and Investments
With BDO since 1990
Over 30 years of banking experience
Walter C. Wassmer
Head — Business Lending
With BDO since 1997
Over 30 years of banking experience
Rolando C. Tanchanco
Head — Consumer Lending
With BDO since 2004
25-year banking experience
Jaime C. Yu
Head — Branch Banking
With BDO since 1997
Over 30 years of banking experience
Pedro M. Florescio III
Head — Treasury
With BDO since 2001
Over 30 years of banking experience
Products, Services and SubsidiariesIntermediation
Nestor V. Tan
President and CEO With BDO since 1997
Over 30 years of banking experience
Roberto E. Lapid
President — BDO Leasing and Finance
With BDOLF since 1993
Over 30-years of banking experience
Estrellita V. Ong
Head — Internal Audit
With BDO since 2011
Over 20 years experience in audit
Renato Vergel de Dios
CEO & Director – Generali Life
With Generali since 2009
40 years of experience in insurance
Alex Buenaventura
President, One Network Bank
With One Network Bank since 1992
35 years of banking experience
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32
Presentation Outline
I. Overview 4
II. Financial Highlights 17
III. Ownership, Board and
Management
27
IV. Environmental, Social and
Governance
33
V. Awards and Citations 40
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Corporate Governance
Five (5) principles of CG
practices
Structure and mechanisms
in place
Full transparency and
timely information
disclosures
Protection of stakeholders’
rights and interests
Strict adherence to best practices and ethical standards
• Accountability
• Fairness
• Integrity
• Transparency
• Performance
• Independent Directors
• Segregation of roles
• Checks & Balances
• Code of Conduct &
Business Ethics
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Corporate Governance
Board
Corporate Governance
Minimum no. of Independent Directors (2) 5 Independent Directors
Cert. Of Attendance – Board Members
Cert. Of Qualification of Ind. Directors
Corporate Governance Manual
CG Guidelines Disclosure Template
SEC Annual Corp Governance Report
Leading Practices on Corp Governance
Code of Conduct and Business Ethics
Compliant with regulatory requirements
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Corporate Social Responsibility
Relief, Rehabilitation and Reconstruction in Disaster hit areas
BDO Foundation’s Disaster Response Advocacy
• Relief operations mounted by BDO Volunteers
• Rehabilitation and reconstruction of rural health centers
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Corporate Social Responsibility
Relief, Rehabilitation and Reconstruction in Disaster hit areas
BDO Foundation’s Disaster Response Advocacy
• Construction of houses in resettlement areas, multi-purpose halls
and school buildings
• Livelihood projects for families with disabled members (PWDs
-
Corporate Social Responsibility
Relief, Rehabilitation and Reconstruction in Disaster hit areas
BDO Foundation’s Disaster Response Advocacy
• Distribution of teaching aids and instructional materials
Tree Planting Activity in support of “Grow a Million Trees” Campaign
-
Environmental Initiatives
ESG Considerations in Lending
Lending Limits and Exclusion List
• Imposes limits and monitors exposure to certain industries,
e.g. Gaming, Tobacco and Alcohol
• Restricts lending to other sectors under the Exclusion List
(those deemed to have adverse or harmful effects on the
community and the environment)
• Conducts environmental and social impact assessment
studies for big projects prior to financing
-
39
Environmental Initiatives
IFC Partner in Sustainable Energy Finance (SEF) Program
Green Energy Investments
• Supports green energy investments
in Energy Efficiency (EE) and
Renewable Energy (RE) projects
• Includes training of bank staff,
delivering technical assistance
assessments to BDO clients and
running market awareness
initiatives
• Recognized as One of six (6)
Momentum for Change Lighthouse
Activities for inspiring climate
action in the financing for climate-
friendly investments category
-
40
Environmental Initiatives
Environmental Awareness, Conservation and Management
• Energy conservation
• Water management
• Air quality
• Waste Disposal
• Other activities – tree
planting, clean-ups
• Raises awareness on environmental issues
• Promotes good environmental practices in the workplace
• Mobilizes volunteers for conservation programs
Green Initiatives
“Go Green” Campaign
-
41
Environmental Initiatives
Sustainability, climate change and wildlife protection
• Joint fund-raising campaign using BDO’s ATM network as key
channel to donate to WWF and support its various programs:
• WWF Corporate Partner of the Year Award in support of
WWF’s projects: ocean conservation, climate solutions,
sustainable food and water production and species protection
• Donsol Whale Shark Program
• Environmental Education for
Climate Change
• Agro-Forestry in Ilagan, Isabela
• Food Security in Quezon, Palawan
• Tubbataha Reefs Conservation
Program
• Saving the Manta Rays and Whale
Sharks at Ticao Pass
• Bancas for the Philippines
• Sustainable Handline Tuna Fishing
in Pasuquin, Ilocos Norte
• Mt. Iglit – Baco Natural Park
• Earth Hour
• Biodiversity Protection and
Ecotourism in Donsol
• Double Wild Tamaraw Numbers by
2020
Support for World Wide Fund for Nature (WWF) Philippines
-
ESG Awards
Silver Awardee Corp Governance Scorecard
Awardee for ten (10) consecutive years
Among the Top 50 Publicly-Listed Companies in the ACGS
Scorecard 2013-2015
Platinum
Award
Recognition for ESG initiatives Corporate
Governance AsiaAmong the Best
in Asia for Environmental Responsibility
One of the Best in Asia for
Corporate Social Responsibility
One of the 15 Recipients of the Institutional Investors
Governance Awards 2016
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43
Presentation Outline
I. Overview 4
II. Financial Highlights 17
III. Ownership, Board and
Management
27
IV. Environmental, Social and
Governance
33
V. Awards and Citations 40
-
44
Awards and Citations, 2014-2016
Best Bank in the Philippines
Global Finance
Asiamoney
FinanceAsia
Among the Best Emerging Markets Banks
The Asset
Euromoney
-
Best
Debt/Equity,
M&A
House
FinanceAsiaFinanceAsia FinanceAsia
Best
Investment
Bank
Best
Private
Bank
Best Project
Finance
Bank
Best Retail &
Wholesale
Bank
45
Awards and Citations, 2014-2016
AsiamoneyEuromoney
The Asset The Asset The AssetThe Asset
Best in
Investment
Bank
Best
Private
Bank
Best Project
Finance
Bank
Best Retail &
Wholesale
Bank
-
Best
in Cash Mgt. &
Transaction
Banking
Best
in Trade
Finance
Best in
Fund
Management
Best
FX Bank/
Provider
46
Awards and Citations, 2014-2016
Best
in Internet
Banking
Asiamoney
FinanceAsia
Among the Most Trusted Brands
Reader’s Digest The AssetThe
Asian Banker
Asset Management Company of the Year
The AssetImpact Investor of the Year
Award
Best
FX Bank/
Provider
Best
in Fund
Management
Best in
Trade
Finance
Best
in Internet
Banking
-
47
Awards and Citations, 2014-2016
Best Managed Company in the Philippines – Large Cap
FinanceAsiaAmong the Best Managed
Public Companies
Asiamoney
Nestor V. TanBest Executive
Excellence in
Leadership &
Management
Most Organized Investor Relations
Among the Best Investor Relations Companies in the
Philippines
Among the Best Senior Management IR Support
Excellence in
Investor
Relations
Teresita T. Sy & Nestor V. Tan One of Asia’s Best CEOs (IR)
Pedro M. Florescio One of Asia’s Best CFOs (IR)
Luis S. Reyes, Jr.One of the Best IR
Professionals (Phils)
Excellence in
Investor
Relations(Individual Awards)
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48
Thank you.
www.bdo.com.ph