Bdo Unibank, Inc. · PSE:BDO
Bdo Unibank — Investor Presentation (March 2017)
48 slides from Bdo Unibank's investor presentation, March 2017
Slide 1: Investor Presentation March 2017
March 2017 Investor Presentation
Slide 2: Legal Disclaimer
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 Pr
Slide 3: Presentation Outline
Presentation Outline I. Overview II. Financial Highlights III. Ownership, Board and Management IV. Environmental, Social and Governance V. Awards and Citations 3
Slide 4: About BDO
About BDO • The Philippines’ largest bank with total assets of P2.33 Tn (USD48.96 Bn). • A full-service universal bank with one of the widest distribution networks consisting of 1,125 operating branches and over 3,600 ATMs nationwide. • Part of the SM Group, one of the country’s largest conglomerate
Slide 5: Milestones
Milestones • Expansion through organic growth and M&As 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 Acquired Rural Bank of San Juan
Slide 6: Market Reach
Market Reach • Wide and extensive coverage in key areas Europe - 12 SEA, China, HK, Taiwan, 11 Remittance Offices 1 Representative Office Korea & Japan - 11 1 Full-service Branch 6 Remittance Offices 4 Representative Offices North America - 2 Middle East - 1 Remittance Offices Representative Office
Slide 7: Domestic Distribution Network
Domestic Distribution Network • 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 3,600 ATMs and electronic channels BDO ONB Total Luzon 310 6 316 Metro 503 1 504 Manila Visayas 108
Slide 8: Business Franchise
Business Franchise • Market-leading positions in almost all business lines #1 #1 #1 #1 #1 Loans Deposits Trust and Credit Remittance Asset Mgt Cards1 Leading Trade Major Player in Services Provider2 Cash Management3 #1 #1 #1 #2 #1 Investment Private Rural Leasing & Insurance Banking4 Banking Banking
Slide 9: Industry Ranking
Industry Ranking • No. 1 among Philippine banks Total Assets Gross Customer Loans 2,330 (in PHP billions) (in PHP billions) 1,474 1,875 BDO Market Share – 18% BDO Market Share – 22% 1,718 1,056 1,055 1,396 747 694 475 628 538 523 412 388 519 305 286 234 196 MBT BPI LBP PNB SECB CHIB DBP RCBC UBP MBT
Slide 10: Organizational Structure
Organizational Structure • With equity investments in allied and non-allied enterprises BDO Unibank, Inc. BANKING / FINANCE REMITTANCES INSURANCE PROPERTY OTHERS BDO Private Bank, MMPC Auto BDO Remit (USA), BDO Insurance SM Keppel Land, Inc. Manila North Inc. 100% Financial Inc. 100% Brokers, Inc. 1
Slide 11: The Banker Top 1000 World Banks – Tier 1 Capital 2015
The Banker Top 1000 World Banks – Tier 1 Capital 2015 Rank Origin Bank USD Million 0 1000 2000 3000 4000 239 Grupo Financiero Banorte 4,231 240 Chugoku Bank 4,220 241 Alfa Bank 4,219 242 Xiamen International Bank 4,174 243 BDO Unibank 4,169 244 Bank ABC 4,079 245 Popular 4,050 246 Baoshang Bank 4,02
Slide 12: The Banker Top Philippine Banks – Tier 1 Capital 2015
The Banker Top Philippine Banks – Tier 1 Capital 2015 Rank Bank USD Million 0 1000 2000 3000 4000 1 4,169 2 MBT 3,348 2,645 3 BPI 4 PNB 1,575 5 1,052 LBP 6 SECB 1,046 7 RCBC 1,034 8 CHIB 1,005 Acronyms: BPI Bank of the Philippine Islands CHIB China Banking Corp. MBT Metropolitan Bank& Trust SECB Sec
Slide 13: Credit Ratings
Credit Ratings Capital Moody’s Fitch Intelligence 28-Oct-2016 21-Feb-2017 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 Senior Unsecured debt Long Term Baa2 BBB- Short Term Prime-2 Outlook Stable B
Slide 14: Trading Fact Sheet
Trading Fact Sheet Stock Details Type Common Shares Stock Ticker BDO ISIN PHY077751022 Exchange Philippine Stock Exchange Par Value P10.00 Outstanding No. of Shares* 4,367,024,454 Foreign Ownership Up to 40% American Depositary Receipts (ADR) Program Details Type Sponsored Level 1 ADR ADR Ticker BDO
Slide 15: Presentation Outline
Presentation Outline I. Overview II. Financial Highlights III. Ownership, Board and Management IV. Environmental, Social and Governance V. Awards and Citations 15
Slide 16: 2016 Income Statement
2016 Income Statement BDO Conso (in PHP billion) 2016 2015 YoY% Interest Income 82.0 72.1 13.7% Loans & Other Receivables 73.2 63.8 14.6% Interest Expense 16.4 15.2 8.2% Net Interest Income 65.6 57.0 15.2% Non-interest Income 41.6 31.9 30.3% Fee Income 22.2 19.4 14.5% Insurance Premiums 8.1 0.0 - Tr
Slide 17: 4Q16 Balance Sheet
4Q16 Balance Sheet BDO Conso (in PHP billion) 4Q16 4Q15 YoY% Resources Reserve Assets 510.8 461.7 10.7% Investment Securities 269.0 225.8 19.2% Gross Customer Loans 1,482.0 1,279.4 15.8% Investment Properties 15.2 14.6 3.8% Other Assets 47.9 49.9 -3.9% Total Resources 2,325.0 2,031.3 14.5% Liabiliti
Slide 18: Loan Growth
Loan Growth • In line with expectation, focusing on target segments 25% 24% 20% 20% 19% 17% 16% 17% 20% Industry 19% 15% 16% 16% BDO 15% 14% 10% 5% 2011 2012 2013 2014 2015 2016 18
Slide 19: Deposits
Deposits • Sustained growth in low-cost deposits • With one of the highest CASA ratios (in P bn) 2,000 1,905 Total 1,800 1,664 Time 1,600 1,492 523 Deposits 1,400 1,345 526 533 CASA 1,200 932 570 1,000 859 800 339 328 1,382 600 1,138 959 400 775 531 592 200 0 2011 2012 2013 2014 2015 2016 Deposits Y
Slide 20: Net Income
Net Income • Sustainable growth from core income sources • Continued investments in products and distribution (in P bn) 30 30.0 25.0 26.1 25 25.0 22.6 22.8 20 20.0 14.5 15 15.0 10.8 10 10.0 5 5.0 0 0.0 2011 2012 2013 2014 2015 2016 20
Slide 21: Capital
Capital Capital Adequacy Ratio Stock Rights Offer CAR PHP60 bn USD1.20 bn January 2017 To support medium-term growth objectives To provide buffer over higher capital requirements with DSIB surcharge BDO 4Q16 21
Slide 22: Income Statement
Income Statement (in PHP billion) 2011 2012 2013 2014 2015 2016 Interest Income 50.5 54.0 56.6 63.6 72.1 82.0 Interest Expense 16.9 17.9 13.4 12.4 15.2 16.4 Net Interest Income 33.6 36.1 43.2 51.2 57.0 65.6 Non-interest Income 20.9 24.4 31.8 29.5 31.9 41.6 Fee Income 12.3 13.4 15.5 18.0 19.4 22.2 In
Slide 23: Balance Sheet
Balance Sheet (in PHP billion) 2011 2012 2013 2014 2015 2016 Resources Reserve Assets 203.5 201.4 491.5 488.4 461.7 510.8 Investment Securities 188.4 237.3 227.9 221.5 225.8 269.0 Gross Customer Loans 670.1 769.0 911.5 1,089.4 1,279.4 1,482.0 Investment Properties 10.1 9.1 10.4 13.9 14.6 15.2 Other
Slide 24: Financial Performance Indicators
Financial Performance Indicators 2011 2012 2013 2014 2015 2016 Profitability Return on Ave. Common Equity 12.4% 12.0% 14.3% 13.6% 13.6% 12.6% Return on Average Assets 1.0% 1.3% 1.6% 1.3% 1.3% 1.2% Margins and Liquidity Net Interest Margin (NIM) 3.5% 3.4% 3.3% 3.2% 3.2% 3.2% Loan to Deposit Ratio 78.
Slide 25: Presentation Outline
Presentation Outline I. Overview II. Financial Highlights III. Ownership, Board and Management IV. Environmental, Social and Governance V. Awards and Citations 25
Slide 26: Shareholder Structure
Shareholder Structure • Majority owned by the SM Group As of 29 December 2016 Percentage Name Nationality Shareholdings of Ownership SM Investments Corp. Filipino 1,463,657,368 40.10% PCD Nominee Foreign 1,114,512,916 30.53% PCD Nominee Filipino 647,923,380 17.75% Multi-Realty Development Corporatio
Slide 27: The SM Group
The SM Group • Harnessing synergies with the country’s largest conglomerate Access to SM’s customer • Largest local retail chain with 332 network stores nationwide • Over 17,000 PHL tenants Retail • Increased presence in • More than 9,500 suppliers discretionary retail with 1,503 • 3.5 million avera
Slide 28: Board of Directors
Board of Directors • One of the strongest Board of Directors in the industry with extensive banking and finance, legal and business background 7 directors out of 11 have an average of 35 years of banking Experienced Bankers experience, including a former Partner and Head of Asia Financials Researc
Slide 29: Board of Directors
Board of Directors • With broad business and professional experience Teresita T. Sy Henry T. Sy Senior Chairperson — first appointed to the Board in 1977 Chairman Emeritus — first appointed to the Board in 1976 Serves as Director in multiple subsidiaries of BDO Founder and Chairman of the SM Gro
Slide 30: Senior Management Team
Senior Management Team • With extensive professional banking expertise Nestor V. Tan President and CEO With BDO since 1997 Over 30 years of banking experience Intermediation Products, Services and Subsidiaries Walter C. Wassmer Ador A. Abrogena Josefina N. Tan Head — Business Lending Head — Trus
Slide 31: Presentation Outline
Presentation Outline I. Overview II. Financial Highlights III. Ownership, Board and Management IV. Environmental, Social and Governance V. Awards and Citations 31
Slide 32: Corporate Governance
Corporate Governance Strict adherence to best practices and ethical standards Five (5) principles of CG Structure and mechanisms practices in place • Accountability • Independent Directors • Fairness • Segregation of roles • Integrity • Checks & Balances • Transparency • Code of Conduct & • Performa
Slide 33: Corporate Governance
Corporate Governance Compliant with regulatory requirements Board Minimum no. of Independent Directors (2) 5 Independent Directors Cert. Of Attendance – Board Members Cert. Of Qualification of Ind. Directors Corporate Governance Corporate Governance Manual CG Guidelines Disclosure Template SEC Annua
Slide 34: Corporate Social Responsibility
Corporate Social Responsibility BDO Foundation’s Disaster Response Advocacy Relief, Rehabilitation and Reconstruction in Disaster hit areas • Relief operations mounted by BDO Volunteers • Rehabilitation and reconstruction of rural health centers
Slide 35: Corporate Social Responsibility
Corporate Social Responsibility BDO Foundation’s Disaster Response Advocacy Relief, Rehabilitation and Reconstruction in Disaster hit areas • Construction of houses in resettlement areas, multi-purpose halls and school buildings • Livelihood projects for families with disabled members (PWDs
Slide 36: Corporate Social Responsibility
Corporate Social Responsibility BDO Foundation’s Disaster Response Advocacy Relief, Rehabilitation and Reconstruction in Disaster hit areas • Distribution of teaching aids and instructional materials Tree Planting Activity in support of “Grow a Million Trees” Campaign
Slide 37: Environmental Initiatives
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 t
Slide 38: Environmental Initiatives
Environmental Initiatives Green Energy Investments IFC Partner in Sustainable Energy Finance (SEF) Program • 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 an
Slide 39: Environmental Initiatives
Environmental Initiatives Environmental Awareness, Conservation and Management “Go Green” Campaign • Raises awareness on environmental issues • Promotes good environmental practices in the workplace • Mobilizes volunteers for conservation programs Green Initiatives • Energy conservation • Water mana
Slide 40: Environmental Initiatives
Environmental Initiatives Sustainability, climate change and wildlife protection Support for World Wide Fund for Nature (WWF) Philippines • Joint fund-raising campaign using BDO’s ATM network as key channel to donate to WWF and support its various programs: • Donsol Whale Shark Program • Bancas for
Slide 41: ESG Awards
ESG Awards One of the 15 Recipients of the Institutional Investors Governance Awards 2016 Awardee for ten (10) Platinum consecutive years Award Silver Awardee Corporate Governance Asia Corp Governance Scorecard Among the Best Among the Best ER CSR Companies in Companies in the the Philippines Philip
Slide 42: Presentation Outline
Presentation Outline I. Overview II. Financial Highlights III. Ownership, Board and Management IV. Environmental, Social and Governance V. Awards and Citations 42
Slide 43: Awards and Citations, 2014-2016
Awards and Citations, 2014-2016 Best Bank in the Philippines Euromoney Asiamoney The Asset Global Finance FinanceAsia Charlton East Coles Philippine Bank of the Top 15, Philippine Company of Year 2016 the Year 2016 Among the Best Emerging Markets Banks Global Finance 43
Slide 44: Awards and Citations, 2014-2017
Awards and Citations, 2014-2017 Among the Best Emerging Markets Banks Global Finance Best Loan / Project Finance Deal Asiamoney Euromoney - Best Country Deal Monde Nissin The Asset Project Finance - Best Power Deal Magazine San Buenaventura Power Ltd Co. - Asia Pacific Power Deal - Project Finance D
Slide 45: Awards and Citations, 2014-2017
Awards and Citations, 2014-2017 Best Retail & Best Project Best Best Best Best Best Project Best Best Wholesale Finance Private Investment Debt/Equity, Wholesale Finance Private Investment Bank Bank Bank Bank M&A Bank Bank Bank Bank House The Asset The Asset The Asset The Asset The Asset Best in Tre
Slide 46: Awards and Citations, 2014-2017
Awards and Citations, 2014-2017 Best Best Bestin Best Best Best Best Best in Best in Best FX Bank/ in Cash Fund Mgt. & in Trade FX Bank/ in Internet Retail Bank Internet Social Media in Trade Provider Management Transaction Finance Provider Banking Banking Initiatives Finance Banking The Asian Banke
Slide 47: Awards and Citations, 2014-2017
Awards and Citations, 2014-2017 Best Best in Best Best in Excellence Best Best Excellence in Excellence in FX Bank/ Fund in Trade inInvestor Internet FX Bank/ in Fund Leadership & Investor Provider Management Finance Banking Relations Provider Management Management Relations (Individual Awards) The
Slide 48: Thank you. www.bdo.com.ph
Thank you. www.bdo.com.ph 48