China Banking Corp. · PSE:CBC
China Banking — 9M2019 Earnings Presentation
22 slides from China Banking's earnings presentation, 2019
Slide 1: Investors Presentation Financial Performance 9M2019
CHINA BANKING CORPORATION Investors Presentation Financial Performance 9M2019
Slide 2: China Bank Profile: Who we are
China Bank Profile Who we are Company Identifiers (Bloomberg/Reuters) CHIB.PM/CHIB.PS Long history as one of the oldest privately owned banks, established in 1920 Stock Price as of Sept. 30, 2019 25.00 Publicly-listed since 1927 on the Manila Stock Exchange Strong presence in the entrepreneur,
Slide 3: China Bank Profile: Where we are
China Bank Profile Where we are ASSETS LOANS DEPOSITS EQUITY 954 Bn 559 Bn 7 7 7 Bn 93 Bn #5 #5 #5 #7 Ranking among privately-owned domestic banks as of September 30, 2019 2
Slide 4: China Bank Profile: Major Milestones
China Bank Profile Major Milestones Acquired Manila Bank with 75 branch licenses Investment Banking and renamed to China Bank Savings Subsidiary Spin-off Infused additional Incorporated Acquired PHP500M capital to CBS 1920 1927 2007 2012 2013 2014 2015 2016 2018 Infused additional Listed in Manila S
Slide 5: China Bank Profile: Full Service Platform
China Bank Profile Full Service Platform 1 2 3 Savings Bank & Other Relationship Banking Financial Markets Segment Business Units Lending Business Segment Treasury Retail Banking China Bank Savings Business Segment - SME - Consumer - Deposits - Housing/Auto Institutional Banking Wealth Management -
Slide 6: Key Investment Highlights
Key Investment Highlights 1 Strong Brand Franchise and Solid Track Record 2 Compelling Growth Story 3 Strong Support from Shareholders and Synergies with the SM Group 4 Experienced and Competent Management Team 5 Best Practice in Governance 5
Slide 7: Strong Brand Franchise and Solid Track Record
1 Strong Brand Franchise and Solid Track Record Loyal and highly valuable customer base Strong presence in entrepreneur segments Multi-generational relationships Sustainable and profitable Agile and entrepreneurial mindset niche client relationships Rapid Network Expansion since 2007 Very Good Credi
Slide 8: Compelling Growth Story: Total Assets and Deposits
2 Compelling Growth Story Solid Balance Sheet with Sustainable Growth Funded by Strong Retail Base Total Assets (PHP in Bn) Deposits (PHP in Bn) 1,200 900 +12% +17% 800 777 1,000 954 722 692 700 133 866 635 816 122 122 800 751 600 542 109 633 500 83 439 335 600 281 244 527 399 207 400 67 471 73 205
Slide 9: Compelling Growth Story: Healthy Loan Growth
2 Compelling Growth Story Healthy Loan Growth More Room to Grow in the Consumer Segment Loans (PHP in Bn) Consumer Loans Breakdown as of 9M19 +10% 2014-2018 CAGR 600 19% 559 14% 513 508 +33% Personal 500 104 YoY loans 456 9% 87 78 394 74 400 Auto 60 21% 317 298 300 48 43 456 426 430 200 382 +6% Hous
Slide 10: Compelling Growth Story: Sustained Profitability and Dividends
2 Compelling Growth Story Sustained Profitability Enable us to increase Dividend Payout and Yield 12.0 3.5 10.4 3.3 10.0 9.9 10.0 9.9 9.6 9.5 3.0 8.8 2.7 8.0 2.6 2.5 +21% 2.4 2.3 2.3 6.0 2.0 1.5 4.0 8.1 7.5 2.4 6.7 2.2 6.5 1.0 2.0 5.6 5.6 1.9 5.1 1.6 1.7 2.0 0.5 - - 2014 2015 2016 2017 2018 9M18 9M1
Slide 11: Compelling Growth Story: Sustainable Revenue Growth
2 Compelling Growth Story Sustainable Revenue Growth Well Diversified Revenue Stream Total Operating Income (PHP in Bn) Non-interest Income Breakdown as of 9M2019 Others 30.0 25% Lending business 26% +15% 25.0 23.8 20.7 +43% 5.2 Retail banking 20.0 30% Financial markets 3.6 19% 15.0 Net interest Inc
Slide 12: Compelling Growth Story: Opportunity to Reduce Costs
2 Compelling Growth Story Opportunity to Reduce Costs And Drive Efficiency Total Operating Expenses (PHP in Bn) Cost-to-income (%) 20.0 70 +19% 16.1 15.0 13.5 65 +26% 65 6.0 64 64 4.8 63 63 63 +30% 10.0 0.5 62 62 62 62 +23% 61 0.4 2.1 61 1.7 60 2.5 +23% 2.0 5.0 4.6 5.0 +8% 55 - 2014 2015 2016 2017 2
Slide 13: Compelling Growth Story: Margins and Q-on-Q Performance
2 Compelling Growth Story Margins to Improve as Interest Rates and RRR Go Down Q-on-Q Performance Showing Recovery Cumulative (In Percentage) Quarter-on-Quarter (In Percentage) 7.0 7.0 6.4 6.4 6.3 6.2 6.2 6.2 5.9 6.0 5.5 6.0 5.6 5.3 5.3 5.1 5.0 5.0 5.0 5.0 4.0 4.0 3.6 3.6 3.7 3.7 3.5 3.6 3.5 3.5 3.4
Slide 14: Strong Support from Shareholders and Synergies with the SM Group
Strong Support from Shareholders and Synergies with the SM 3 Group China Bank benefits from being part of one of the largest and most diversified conglomerates in the Philippines Snapshot of SM Group Business Lines Current Shareholdings Others SM Investment 23% 27% SM Group Sysmart Corp 15% 38% Reta
Slide 15: Highly Regarded Management Team
Highly Regarded Management Team with Average of More than 30 4 Years of Experience Hans T. Sy Gilbert U. Dee William C. Whang Chairman of the Board Vice Chairman of the Board Director and President Romeo D. Uyan, Jr. Rosemarie C. Gan Patrick D. Cheng Executive Vice President and Chief Executive Vice
Slide 16: Best Practice in Governance
5 Best Practice in Governance Track record of excellence in Corporate Governance Golden Arrow Recognition Ceremony 2019 4-arrow recognition with score range of 110-119 in ACGS 2nd ASEAN Corporate Governance Awards Top 11 to 30 among the top 50 PLCs in ASEAN PSE Bell Awards for Corporate Governance
Slide 17: We have a strategic plan in place to deliver on our targets
We have a strategic plan in place to deliver on our targets Underpinned by four (4) wildly important goals (WIGS) • Build low cost deposits Growth of revenues and • Launch new deposit products and services suited to the needs of the retail and other emerging sectors size of business • Recalibrate br
Slide 18: Thank you
CHINABANK Since 1920 Thank you
Slide 19: Governance – Adapting ESG Framework
Governance – Adapting ESG Framework
Slide 20: No. 1 in Domestic Debt Capital Market
No. 1 in Domestic Debt Capital Market Atlantic Gulf and Pacific China Bank Corporation Autotax Payment Facility Apo Agua Infrastructure Del Monte Pacific US$200 Company Php6 Billion P30 Billion Fixed Rate Php9 Billion financing Million Preferred Shares term loan Retail Bond Most Innovative Public Be
Slide 21: Financial Highlights – Balance Sheet
Financial Highlights – Balance Sheet In PhP Billions 9M19 9M18 Growth Liquid Assets 140 127 +10% Investments 227 159 +43% Net loans 553 500 +10% Other Assets 34 30 +15% Total Assets 954 816 +17% Deposit Liabilities 777 692 +12% Bills Payable 27 24 +10% Bonds Payable 38 - - Other Liabilities 19 15 +3
Slide 22: Financial Highlights – Income Statements
Financial Highlights – Income Statements In PhP Billions 9M19 9M18 Growth Net Interest Income 18.7 17.1 +9% Non-interest Income 5.2 3.6 +43% Operating Income 23.9 20.7 +15% Operating Expenses 15.6 13.1 +19% Provisions 0.5 0.4 +10% Total Expenses 16.1 13.5 +19% Income Before Income Tax 7.7 7.2 +7% In