Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — Investor Presentation (December 2010)
23 slides from Rizal Commercial Banking's investor presentation, December 2010
Slide 1: Management Presentation
Management Presentation December 2010
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements. Statements that are not historical facts, including but not limited to statements regarding RCBC’s financial position, business strategy, plans and objectives of management for future operations, including development plans and object
Slide 3: Investment Highlights
Investment Highlights The Philippines – compelling country profile Philippine banking system – positioned for superior growth Management team with proven track record Innovative expansion strategy High margin / high growth segment focus Best value 2
Slide 4: 1. The RCBC Franchise Overview
1. The RCBC Franchise Overview
Slide 5: RCBC: A Leading Banking Institution in the Philippines
RCBC: A Leading Banking Institution in the Philippines Foreign Locations USA: RCBC North Luzon Region America – 4th largest private bank in the Philippines in terms Italy: RCBC Telemoney 120 Branches of capital Hong Kong: 147 ATMs – RCBC International Finance Ltd. – RCBC Investment – #1 pr
Slide 6: RCBC Market Positioning
RCBC Market Positioning (In PHP bn) Loans Assets 517.4 899.1 869.3 752.7 418.9 369.2 307.0 294.5 147.6 235.8 233.7 115.4 108.0 105.7 177.1 171.0 89.0 145.5 68.5 52.2 BDO Metro BPI RCBC PNB ChinaBank UBP Allied Security UCPB BDO Metro BPI PNB RCBC UBP ChinaBank Allied UCPB Security Bank Bank Deposits
Slide 7: Yuchengco Group of Companies
Yuchengco Group of Companies Pan Malayan Management & Investment Corporation Holding Company RCBC Malayan Grepalife House of AY Foundation, Insurance Financial Investments, Inc. Inc. Universal Bank #1 Non-life Life Insurance Holding Company Corporate Insurance Company Philanthropic Arm Company in th
Slide 8: Comprehensive Universal Banking Services
Comprehensive Universal Banking Services RIZAL COMMERCIAL BANKING CORPORATION RCBC RCBC RCBC Microfinance Capital Bankard, Inc. Forex Brokers Savings Bank Corporation Corporation Pres. J.P. Rizal Micro Laurel Rural Bank Bank RCBC Securities, Inc. RCBC, together with its key subsidiaries, offers a fu
Slide 9: Diversified Banking Platform
Diversified Banking Platform 1 Large corporates and SME Revenue Breakdown by Type Corporate Banking Japanese locators and Filipino-Chinese Special “Ecozones” lending Others 24% 2 232 branches and extension offices(1) Net Interest Retail Banking Wide ranging deposit and cash management solu
Slide 10: 2. RCBC Investment Thesis
2. RCBC Investment Thesis
Slide 11: The Philippines: High Growth, Attractive Investment Profile
The Philippines: High Growth, Attractive Investment Profile Improving Government Finances Strong Capital Market Performance (Central Government Debt / GDP) 150% 72% 137% 63% 130% 55% 132% Rebased to 100 45% 42% 38% 36% 32% 31% 110% 90% 2010E 2011E Mar-10 May-10 Jun-10 Aug-10 Sep-10 Nov-10 2003A 2004
Slide 12: The Philippines: Best Positioned Among Asian Peer Markets
The Philippines: Best Positioned Among Asian Peer Markets Banking Sector Loans as % of GDP (2009) Net Interest Margins(1) (2009) 201% 5.6% 187% 162% 4.4% 128% 123% 120% 120% Average = 116% 3.2% 3.1% Average = 2.8% 98% 3.0% 2.6% 2.3% 59% 2.2% 2.2% 45% 1.3% 30% 0.5% HK China Malaysia Thailand India In
Slide 13: Experienced & Recognized Leadership Team
Experienced & Recognized Leadership Team Leadership with a Officer Title Education Noteworthy Experience broad depth of Ambassador Alfonso T. Honorary Chairman Columbia CEO of PMMIC experience Yuchengco (Graduate) Former Ambassador to Japan, China, U.N. Multiple business and political leadersh
Slide 14: Successful Transition / Poised to Grow
Successful Transition / Poised to Grow (In PHP bn) Restructuring Phase Positioning for Accelerated Growth 2004 2005 2006 2007 2008 2009 2010E 2006 2007 2008 2009 2010 PHP5 bn (Hybrid Tier 1) PHP5.6 bn PHP7 bn PHP9 bn Plans to raise (Common (Unsecured (Unsecured ~US$100 mm PHP1 bn (Conv.
Slide 15: Proven Track Record
Proven Track Record EPS Trend Total Net Revenues (PHP) (PHP bn) 11.7% = 23.6 % 4.74 CAGR = 19.5 CAGR 16.2 13.2 13.1 44% 12.3 11.2 36% 3.11 33% 35% 2.82 2.93 36% 41% 67% 64% 56% 65% 64% 59% 1.73 1.72 2005 2006 2007 2008 2009 Sep-10 (1) 2005 2006 2007 2008 2009 Sep-10(1) Net Interest Income Non-Intere
Slide 16: Innovative Expansion Strategy
Innovative Expansion Strategy Grow SME and Consumer Business Market Mix Focus Focus on fee income Tap into the “C” market New core banking system Systems Distribution & Enhancement Strategy New network alliances 13
Slide 17: Shift Focus to High Margin / High Growth Business Segments
Shift Focus to High Margin / High Growth Business Segments Targeted to grow between 20 – Primarily residential mortgage, 25% per annum auto finance and credit cards Small & Medium Long-term objective to comprise Consumer Very attractive mix of yield, risk Enterprises (SME) 20% of portfolio B
Slide 18: Capturing the “C” Market
Capturing the “C” Market Range of Population Household Inc. The “C” class represents the mm % (PHP, monthly) future of the Philippines, upwardly mobile with a strong A/B 7.9 8.6% >55,000 tendency to save and build wealth Highly underpenetrated, many of whom do not have a banking C 56.6 61.4 11,5
Slide 19: Upgrading System Capabilities
Upgrading System Capabilities With a new core banking system from Infosys and advanced hardware from IBM, RCBC will be able to more efficiently and effectively deliver its banking services Increased product innovation and diversification capabilities Ability to serve significantly expanded customer
Slide 20: Rational Approach to Platform Expansion
Rational Approach to Platform Expansion ATM Network Branch Network(1) 28.5 % = 5.8% R= CAGR 385 400 CAG 1,000 370 770 338 324 554 471 301 380 294 258 299 2006A 2007A 2008A 2009A 2010E 2011E 2012E 2006A 2007A 2008A 2009A 2010E 2011E 2012E ATMs per Branch Innovative approach Profitably grow retail
Slide 21: Positioned for Future Growth and Profitability
Positioned for Future Growth and Profitability RCBC has one of the strongest Net Interest Margin (LTM) earnings and profitability profiles in 4.7% Average = 3.8% the Philippines 4.2% 4.1% 4.1% 3.5% 3.5% 3.3% RCBC’s superior portfolio mix allows it to enjoy one of the RCBC BDO ChinaBank PNB BPI M
Slide 22: Attractive Valuation
Attractive Valuation Price-to-Adjusted Book Value(1) Price-to-Earnings 2011E 2.6x 17.4x 17.0x 15.3x 14.4x Average = 12.6x 1.9x 1.8x 1.8x Average = 1.7x 11.2x 1.6x 1.4x 9.5x 9.3x 1.2x 1.1x 6.8x BPI SecB BDO Metro PNB CBC RCBC Union BPI BDO PNB Metro Union SecB CBC RCBC 19 Market data as of December 2
Slide 23: The End
The End ORCBC
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