july 2019 investor presentation 1q19 results...investor presentation 1q19 results july 2019...
TRANSCRIPT
Investor Presentation1Q19 Results
July 2019
Presentation Outline
I. Overview
II. Financial Highlights
III. Ownership, Board and Management
IV. Sustainability
V. Awards and Citations
• The Philippines’ largest bank with total assets of P3.0 Tn (USD57.4 Bn).
• A full-service universal bank with one of the widest distribution networks consisting of more than 1,300 operating branches and over 4,000 ATMs nationwide.
• Part of the SM Group, one of the country’s largest conglomerates.
About BDO
3
4
Milestones• Expansion through organic growth and M&As
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
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
P617 BN
Merged with Equitable PCI Bank.
Acquired Amex Savings Bank Philippines
2007
P2 TN
Est. as Acme
Savings Bank
2003
Acquired Banco Santander Philippines
P149 BN
2016 2017
Joint Venture with Nomura Securities; Acquired
exclusive franchise of Diners Club Int’l and full
control of Generali Pilipinas Life (renamed as
BDO Life Assurance)
P2.3 TN
2008 2009
Acquired GE Money Bank
P862 BN
P802 BN
Full-Service Bank StrategyNiche Strategy
#19 #17 #13 #9 #9 #5 #2 #1Ranking
Commercial Bank Expansion
P2.7 TN
2018
P3.0 TN
2019
To acquire RB
Pandi banking
business
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 &e
quity
securities
Fin’l advisory
Project finance
Loan
syndication
Stock
Brokerage
Equities trading
Online stock
trading
Insurance
Brokerage
(property &
casualty)
Bancassurance
(individual &
group life
insurance)
Rural
Banking
Salary loans
MSME loans
Deposit
products
Cash
management
Remittances
5
6
Market Reach• Wide and extensive coverage in key areas
24 International Offices
Europe - 99 Remittance Offices
Middle East - 1Representative Office
Asia - 11 2 Full-service Branches
6 Remittance Offices
3 Representative Offices
North
America - 3 Remittance Offices
Philippines - 1,364
Branches
As of 05 July 2019
BDO ONB Total
Luzon 350 80 430
Metro
Manila590 8 598
Visayas 121 29 150
Mindanao 82 104 186
Total
Branches1,143 221 1,364
Business Franchise
#1
Customer
Loans
#1
Deposits#1
Remittances
#1
Assets Under
Management
#1
Private
Banking
Leading Trade
Services Provider2
Major Player in
Cash Management3
#1
Rural
Banking
#3
Leasing &
Finance
#1
Investment
Banking4
#1 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 Asian Banking and Finance, Global Finance3 According to Alpha South East Asia, Asian Banking and Finance, The Asset4 In terms of debt and equity capital markets corporate issuances, excluding banks’ stock rights offers5 Among insurance brokers in terms of premiums produced and commissions earned
7
1,193
643
441318
138 93 90 87 53 50
BPI MBT LBP CHIB PNB RCBC UCPB SECB UBP
2,361
1,681 1,611 1,582
745 720
461 447 426 416
LBP BPI MBT PNB CHIB SECB DBP UBP RCBC
1,998
1,364 1,359
757582 513
411 386 307 280
BPI MBT LBP PNB CHIB SECB RCBC UBP DBP
8
Industry Ranking
Total Assets
(in PHP billions)
Source: Company data, consolidated statements of condition (SOC). Ranking as at 31 March 2019
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 – 36%
BDO Market Share – 22%BDO Market Share – 18%
BDO Private Bank, Inc. 100%
BDO Capital & Investment Corporation 99.88%
BDO Leasing and Finance, Inc. BDO -87.43%, BDO Capital – 1.11%
One Network Bank, Inc. (A Rural Bank) 99.8550%
BDO Remit (USA), Inc. 100%
BDO Remit (Japan) Ltd. 100%
BDORO Europe Ltd. 100%
BDO Remit (Canada) Ltd. 100%
Express Padala (HK) Ltd. 100%
BDO Remit(Italia) S.p.A. 100% (a)
BDO Remit Limited 100%
BDO Remit (Macau)Limited 100%
BDO Remit Int’l Holdings B.V. 96.32%
Averon Holdings, Inc. 100%
BDO Rental, Inc. 100%
BANKING / FINANCE
BDO Unibank, Inc.
Armstrong Securities 80% (b)
REMITTANCES INSURANCE PROPERTY
BDO Nomura Securities, Inc. 51%
BDO Strategic Holdings, Inc. 100%
BDO Insurance Brokers, Inc. 100%
BDO Life Assurance Company (formerly Generali Pilipinas Life Assurance Co.) BDO-97.0%, BDO Capital-3.0%
Equimark-NFC Development Corp. 60%
SM Keppel Land, Inc. 50%
Northpine Land, Inc. 20%
Taal Land, Inc. 33.33% (b)
Unicorn First Properties, Inc. 35% (a)
OTHERS
NLEX Corp. (formerly Manila North Tollways Corp.) 12.4%
Venture Industry for Business Enterprises 24% (a)
• With equity investments in allied and non-allied enterprises
Organizational Structure
** not yet operational.
(a) For dissolution(b) For sale
BDO Securities Corporation 100%
BDO Remit (UK) Ltd. (formerly CBN London Ltd.) 100%
CBN Greece S.A. 99.92% (a)
BDO Remit (Ireland) Designated Activity Company. 100%
CBN Remittance Center S.A. 99.99%
Stockholders of BDO
Financial Allied Subsidiary
Financial Allied Affiliate
Non-Financial Allied Subsidiary
Non-Allied UndertakingSubsidiary/Affiliates of BDO
Subsidiaries
Non-Financial Allied Affiliate
9
The Banker Top 1000 World Banks – Tier 1 Capital 2017
10
USD Million
231
Rank Origin Bank
235
232
234
237
238
239
240
233
236
5,421
5,419
5,403
5,391
5,344
5,289
5,203
5,140
5,114
5,067
Bank Gospodarstwa Krajowego
Taipei Fubon Bank
Iyo Bank
Mashreqbank
BDO Unibank
E. Sun Commercial Bank
Yes Bank
Bank Nederlandse Gemeenten
Qatar Islamic Bank
Landwirtschaftliche Rentenbank
5,344
3,611
3,325
1,940
1,782
1,415
1,088
1,014
0 1000 2000 3000 4000 5000 6000
MBT
BPI
SECB
PNB
CHIB
RCBC
UBP
The Banker Top Philippine Banks – Tier 1 Capital 2017
USD MillionBank
1
Rank
2
3
4
5
6
7
8
Acronyms:
BDO BDO Unibank PNB Philippine National Bank
BPI Bank of the Philippine Islands RCBC Rizal Commercial Banking Corp. CHIB
China Banking Corporation SECB Security Bank Corp.
MBT Metropolitan Bank& Trust UBP UnionBank of the Philippines
Note: Only private banks are included in the 2017 individual country rankings list
11
Credit RatingsMoody’s Fitch
29-Jan-2019 30-Jan-2019
Foreign Currency Bank Deposits/Issuer/Debt Rating (IDR)
Long Term Baa2 BBB-
Short Term P-2 F3
Outlook Stable Stable
Senior Unsecured debt
Long Term Baa2 *BBB-
Short Term P-2
Outlook Stable
BCA/Viability Rating
Baseline Credit Assessment (BCA) baa2
Adjusted BCA Rating baa2
Viability Rating bbb-
Support Rating 2
Support Rating Floor BBB-
Counterparty Risk (CR) Assessment
Long Term Baa1(cr)
Short Term P-2 (cr)
Counterparty Risk Rating (CRR)*
Foreign Currency
Long Term Baa1
Short Term P-2
Local Currency
Long term Baa1
Short Term P-2
*Mentioned in Fitch Press Release dated November 18, 2018
Source: Moody’s, Fitch;
12
Trading Fact SheetStock Details
Type Common Shares
Stock Ticker BDO
ISIN PHY077751022
Exchange Philippine Stock Exchange
Par Value P10.00
Outstanding No. of Shares* 4,3757,239,284
Foreign Ownership Up to 40%
American Depositary Receipts (ADR) Program Details
Type Sponsored Level 1 ADR
ADR Ticker BDOUY
ISIN US05537Y3045
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 July 2, 2019
13
Presentation Outline
I. Overview
II. Financial Highlights
III. Ownership, Board and Management
IV. Sustainability
V. Awards and Citations
1Q19 P&L Exc. ONB & BDO Life
(in PHP billion) 1Q19 1Q18 YoY% 1Q19 1Q18 YoY%
Interest Income 38.8 28.2 37% 37.9 27.6 37%
Interest Expense 11.1 6.1 83% 11.0 6.0 84%
Net Interest Income 27.7 22.2 25% 26.8 21.6 24%
Non-interest Income 14.9 10.9 36% 10.3 8.8 16%
Fee Income 8.2 6.9 18% 7.8 6.9 14%
Insurance Premiums 3.2 2.6 23% 0.0 - -
Trading & FX 2.2 0.0 9163% 1.3 0.7 74%
Others 1.2 1.3 -6% 1.1 1.2 -8%
Gross Operating Income 42.6 33.1 29% 37.1 30.4 22%
Operating Expense 28.3 23.1 22% 24.1 20.5 18%
Ins. Reserves, Benefits and Claims 2.8 1.5 89% - - -
Pre-Provision Operating Profit 14.3 10.0 43% 12.9 9.9 31%
Provisions 1.3 1.8 -29% 1.2 1.6 -21%
Net Income Before Tax 13.0 8.2 59% 11.7 8.3 40%
Taxes 3.2 2.3 41% 3.1 2.3 37%
Net Income 9.8 5.9 66% 8.6 6.1 42%
Return on Common Equity 11.8% 7.9% -
BDO Conso BDO ex-ONB & BDO Life
15
1Q19 Balance Sheet
(in PHP billion) 1Q19 1Q18 YoY%
Resources
Reserve Assets 488.3 546.7 -11%
Investment Securities 436.7 357.4 22%
Gross Customer Loans 2,009.9 1,828.2 10%
Investment Properties 20.0 18.2 10%
Other Assets 59.2 47.0 26%
Total Resources 3,014.1 2,797.6 8%
Liabilities
Deposits 2,361.4 2,242.2 5%
CASA 1,675.0 1,586.1 6%
Bills Payable/Sub-Debt 185.7 151.3 23%
Insurance Contract Liab. 33.2 25.3 32%
Other Liabilities 95.5 79.3 20%
Total Liabilities 2,675.7 2,498.0 7%
Total Capital 338.4 299.6 13%
Total Liabilities & Capital 3,014.1 2,797.6 8%
BDO Conso
16
16%
20%
14%
17%19%
16%
13%
19%20%
17%
16%18%
15%
10%
0%
5%
10%
15%
20%
25%
30%
2013 2014 2015 2016 2017 2018 1Q19
Industry
BDO
17
BDO Loan Growth vs. Industry
8%
15%17%
17%
22%
30%
39%
19%20%
17%
16% 18%15%
10%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2013 2014 2015 2016 2017 2018 1Q19
Growth inInterestincome fromLoans Only(YoY)
Loan Growth(YoY)
BDO Loan Growth vs. Interest Income Growth
a
aUKB, based on loans net of RRPs
Loan growth negated by
declining ratesGood volume growth with stable yields
Industry
ROE 13.7% 11.0% 9.8% 10.5% 10.0% 9.3% 9.6%
18
Capital Ratios Net Income & ROE
ROCE
a Per SOC, BSP bUKB
bBDO
1Q19a
CAR
Income Statement(in PHP billion) 2013 2014 2015 2016 2017 2018 1Q19
Interest Income 56.6 63.6 72.1 82.0 99.8 129.0 38.8
Interest Expense 13.4 12.4 15.2 16.4 18.0 30.7 11.1
Net Interest Income 43.2 51.2 57.0 65.6 81.8 98.3 27.7
Non-interest Income 31.8 29.5 31.8 41.6 47.2 49.7 14.9
Fee Income 15.5 18.0 19.4 22.2 28.9 30.7 8.2
Insurance Premiums - - - 8.1 9.9 11.8 3.2
Trading & FX 12.8 7.1 7.2 4.8 3.9 2.2 2.2
Others 3.6 4.4 5.3 6.5 4.5 5.0 1.2
Gross Operating Income 75.0 80.7 88.8 107.2 129.0 148.0 42.6
Operating Expenses 43.3 48.5 55.1 70.0 84.9 98.0 28.3
Ins. Reserves, Benefits and Claims - - - 5.7 7.5 7.5 2.8
Pre-Provision Operating Profit 31.8 32.2 33.7 37.2 44.1 49.9 14.3
Provisions 7.0 5.1 3.0 3.8 6.5 6.3 1.3
Income bef. Pre-Acquisition 24.8 27.1 30.7 33.4 37.6 43.6 13.0
Pre-Acquisition Income - - - (0.4) - - -
Taxes 2.1 4.2 5.7 6.8 9.5 11.0 3.2
Net Income 22.6 22.8 25.0 26.2 28.1 32.7 9.8
19
Balance Sheet(in PHP billion) 2013 2014 2015 2016 2017 2018 1Q19
Resources
Reserve Assets 491.5 488.4 461.7 511.0 509.7 534.4 488.3
Investment Securities 227.9 221.5 225.8 269.0 332.9 385.2 436.7
Gross Customer Loans 911.5 1,089.4 1,279.4 1,482.0 1,754.9 2,020.1 2,009.9
Investment Properties 10.4 13.9 14.6 15.2 18.0 19.8 20.0
Other Assets 31.5 50.5 49.9 47.8 52.5 62.8 59.2
Total Resources 1,672.8 1,863.6 2,031.3 2,325.0 2,668.1 3,022.2 3,014.1
Liabilities
Deposits 1,345.3 1,492.3 1,663.9 1,905.2 2,121.0 2,420.0 2,361.4
Bills Payable/Sub-debt 97.3 110.4 107.6 110.6 140.5 153.7 185.7
Insurance Contract Liab. - - - 20.6 26.0 28.5 33.2
Other Liabilities 65.8 81.3 60.2 71.1 82.3 92.0 95.5
Total Liabilities 1,508.4 1,684.0 1,831.6 2,107.4 2,369.8 2,694.1 2,675.7
Total Capital 164.4 179.7 199.6 217.6 298.3 328.1 338.4
Total Liabilities & Capital 1,672.8 1,863.6 2,031.3 2,325.0 2,668.1 3,022.2 3,014.1
20
Financial Performance Indicators2013 2014 2015 2016 2017 2018 1Q19
Profitability
Return on Ave. Common Equity 14.3% 13.6% 13.6% 12.7% 10.2% 10.7% 11.8%
Return on Average Assets 1.6% 1.3% 1.3% 1.2% 1.1% 1.1% 1.3%
Margins and Liquidity
Net Interest Margin (NIM) 3.3% 3.2% 3.2% 3.2% 3.5% 3.6% 3.9%
Loan to Deposit Ratio 67.8% 73.0% 76.9% 77.8% 82.7% 83.5% 85.1%
Liquid Assets to Total Assets 43.0% 38.1% 33.8% 33.5% 31.6% 30.4% 30.7%
Cost Efficiency
Cost to Income Ratio 57.7% 60.1% 62.1% 65.3% 65.8% 66.3% 66.5%
Cost to Assets Ratio 3.0% 2.7% 2.8% 3.2% 3.4% 3.4% 3.8%
Asset Quality
NPL Ratio 1.6% 1.3% 1.2% 1.3% 1.2% 1.0% 1.2%
NPL Cover 170.7% 188.4% 166.1% 139.3% 146.3% 183.1% 162.9%
Capital and Leverageb Basel II
CET1 .0% 12.4% 11.3% 10.6% 12.9% 12.1% 12.4%
Tier 1 Ratio 14.6% 12.8% 11.7% 10.9% 13.1% 12.3% 12.6%
Capital Adequacy Ratio (CAR) 15.8% 14.6% 13.3% 12.3% 14.5% 13.7% 14.0%aAnnualized 6 7 8 9 10 11 12bPer SOC, BSPcPer BSP Circ. 1011
Basel III
a
a
a
a
c c
21
Presentation Outline
I. Overview
II. Financial Highlights
III. Ownership, Board and Management
IV. Sustainability
V. Awards and Citations
Shareholder Structure
• Majority owned by the SM Group
As of 31 March 2019
Name Nationality Shareholdings
Percentage
of
Ownership
SM Investments Corp. Filipino 1,750,930,649 40.02%
PCD Nominee Foreign 1,320,893,455 30.19%
PCD Nominee Filipino 807,420,146 18.46%
Multi-Realty Development Corporation
SM Prime Holdings
Filipino
Filipino
282,890,230
90,024,395
6.47%
2.06%
Sub-Total, Top Shareholders 97.20%
Total Shares Outstanding* 4,375,066,774
Source: Top 100 Shareholders as of 31 March 2019
*Number of chares outstanding subsequently increased to 4,377,239,284 as of July 2, 2019 due to the purchase of additional common shares by the
Bank’s eligible senior officers pursuant to the Banks employee stock option/grant program and issuance of additional shares as a result of the recently
concluded stock rights offer.
23
24
Financial
Services
Property
Retail
Access to SM’s customer
network
• Over 18,400 PHL tenants
• More than 9,500 suppliers
• 4.2 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 leading property
developers in the country with
strong presence in mall operations
and housing developments
• Dominant domestic mall
developer/operator - 72 malls in
the Philippines with GFA of 8.3
mn sqm (with 7 more malls in
China)
• Largest local retail chain with 997
stores nationwide
• Increased presence in discretionary
retail with 1,388 outlets
• Biggest domestic banking
operations
• Interests in BDO and China Bank
The SM Group
• Harnessing synergies with the country’s largest conglomerate
7 directors have an average of 35 years of banking
experience, including a former Partner and Head of Asia
Financials Research at Goldman Sachs
1 director is a senior partner in one of the most prestigious
law firms in the Philippines while another is a bar topnotcher
and member of the New York State Bar
• One of the strongest Board of Directors in the industry with extensive
banking and finance, legal and business backgrounds
• Independent directors comprise 6 out of 11-member Board
Experienced
Bankers
Legal Experts
2 directors are successful businesspersons who have made
their mark in their respective fields
Successful
Entrepreneurs
Board of Directors
25
Board of Directors
• With broad business and professional experience
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.
George T. Barcelon
Independent Director — first appointed to the Board in 2019
Currently Chairman of the Philippine Chamber of Commerce
and Industry
The visionary behind Integrated Computer Systems Inc., a
Top 1000 company
Josefina N. Tan
Director — first appointed to the Board in 2007
Former 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
Former COO of the Financial Institution Services Group of BZW,
the investment banking subsidiary of the Barclays Group
Holds Directorships of numerous BDO subsidiaries
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
Vicente S. Perez, Jr
Independent Director — first appointed to the Board in 2019
Served as Secretary of the Department of Energy 2001-2005
Chairman of Altenergy and Solar Pacific
MBA Wharton School
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 CenterChristopher A. Bell-Knight
Director — re-elected to the Board in 2013
Previously served as BDO Director from 2005-2010
Former VP and Country Head of the Bank of Nova Scotia
Associate of the Chartered Institute of Bankers - British
26
Senior Management Team • With extensive professional banking expertise
Corporate Support
Frederic Mark S. Gomez
Head — I.T.
With BDO since 2017
Over 22 years financial services experience
Evelyn C. Salagubang
Head — HRG Recruitment
With BDO since 2007
Over 26 years experience in HR
Lucy Co Dy
Head — Comptrollership
With BDO since 1985
Over 31 years of banking experience
Edwin Romualdo G. Reyes
Head — Transaction Banking
With BDO since 2015
Over 31 years banking experience
Evelyn L. Villanueva
Head — Risk Management
With BDO since 2002
Over 31 years of banking experience
Luis S. Reyes Jr.
Head — IR & Corplan
With BDO since 2003
Over 31 years of banking experience
Atty. Federico P. Tancongco
Head — Compliance
With BDO since 2005
Over 25 years of banking experience
Alvin C. Go
Head — Legal
With BDO since 2013
In the practice of law for 31 years
Maria Theresa L. Tan
General Manager — BDO Insurance
With BDO since 2009
23-year banking and insurance experience
Albert Santiago Yeo
Head — Private Banking
With BDO since 2017
Over 33 years banking experience
Eduardo V. Francisco
Head — Investment Banking
With BDO since 1999
31 years banking experience
Rafael G. Ayuste Jr.
Head — Trust and Investments
With BDO since 2014
Over 30 years of banking experience
Walter C. Wassmer
Head — Business Lending
With BDO since 1997
Over 31 years of banking experience
Rolando C. Tanchanco
Head — Consumer Lending
With BDO since 2004
Over 26-year banking experience
Jaime C. Yu
Head — Branch Banking
With BDO since 1997
Over 35 years of banking experience
Dalmacio D. Martin
Head — Treasury
With BDO since 2009
Over 31 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 35 years of banking experience
Estrellita V. Ong
Head — Internal Audit
With BDO since 2011
Over 24 years experience in audit
Renato Vergel de Dios
President & CEO – BDO Life Assurance Co. Inc.
With BDO since 2016
Over 41 years of experience in insurance
Jesus Antonio Saldaña Itchon
President, One Network Bank
With BDO since Sep. 15, 2017
Over 31 years of banking experience
Maria Cecilia G. Fonacier
Head — Marketing Communications
With BDO since 2017
Over 21 years of banking experience
Grace C. Palomar
Head — HRG Training & Org Dev’t
With BDO since 2015
Over 38 years experience in HR
Sixto Sison Gaddi
Head — HRG Workforce Management
With BDO since 2018
Over 26 years experience in HR
Myla R. Untalan
Head — Digital Infrastructure
With BDO since 2003
Over 26 years of banking experience
Joseph Albert L. Gotuaco
Head — Central Operations Group
With BDO since 2019
Over 30 years banking experience
27
Presentation Outline
I. Overview
II. Financial Highlights
III. Ownership, Board and Management
IV. Sustainability
V. Awards and Citations
Sustainability Report for 2018
Click
here
Full report can be accessed at: www.bdo.com.ph under Company Disclosures:
https://www.bdo.com.ph/sites/default/files/pdf/2018-BDO-Sustainability-Report.pdf
Outlines BDO’s sustainability strategies covering:
• Products
• Sustainability contribution
• Human capital
• Disaster response
• Governance
Reports on the Bank’s 2018 economic, environmental, social and governance performance
Conforms with Global Reporting Initiative (GRI) standards
29
BDO’s Path in Creating Shared Value
In Support of the UN Sustainable Development Goals
Sustainability Philosophy
We seek to achieve strategic resilienceby incorporating sustainability in theway we do business.
We aim to embed sustainabilityprinciples when making decisions,assessing relationships, and creatingproducts.
BDO’s commitment to sustainability isfostered at the Board level. It anchorsits sustainable development strategy tothe United Nations SustainableDevelopment Goals (SDGs). The Bankalso upholds the 10 Principles of theUnited Nations Global Compact.
32
Sustainability Framework
33
ESG Recognition / Awards
Silver Awardee Corp Governance Scorecard
Awardee for fourteen (14) consecutive years
Among the Best Companies in the Philippines in CSR and
Environmental Responsibility
Platinum
Award
Among the recipients of the 6th and 7th Asian Excellence
Award
Corporate Governance Asia
Teresita T. Sy-CosonAsian Corporate Director Award
Institutional InvestorOne of the 15 Recipients of the
Institutional Investor Governance
Awards 2016
ASEAN Corporate
Governance Scorecard Among the Top 50 Publicly-Listed
Companies 2013-2018
Asian
Banking &
Finance
Corporate Social Responsibility Program of the Year – Gold (2017-2018)
BDO Unibank is a constituent
of the FTSE4Good Index
http://www.ftse.com/products
/indices/FTSE4Good
Forbes 2018GLOBAL 2000
Top Regarded Companies (#140) Top World’s Best Employers (#24)
34
Presentation Outline
I. Overview
II. Financial Highlights
III. Ownership, Board and Management
IV. Sustainability
V. Awards and Citations
Awards and Citations, 2014-2019
Best Bank in the Philippines
Asiamoney
FinanceAsia
Euromoney
Global Finance
Philippine Bank of the
Year 2016
Charlton East Coles
Top 15, Philippine Company of
the Year 2016
The BankerBank of the Year, Philippines
The AssetBest Domestic bank, Philippines
(2014-2018)
The Asian BankerStrongest Bank, Philippines
36
Best
Debt/Equity,
M&A
House
Best
Investment
Bank
Best
Private
Bank
Best Project
Finance
Bank
Best Retail &
Wholesale
Bank
Awards and Citations, 2014-2019
Best
Investment
Bank/Deals
Best
Private
Bank
Best Project
Finance
Bank/Deals
Best
Wholesale
Bank
Fund House of the
Year - Philippines
Best in Treasury & Working
Capital – SMEs in the
Philippines
FinanceAsia
FinanceAsia FinanceAsia
The Asset The AssetThe Asset
The AssetThe Asset
Euromoney
Global Finance
Asian Private
Banker
Asiamoney Asiamoney
AsianInvestor
Euromoney
Asiamoney
Project Finance
MagazineGlobal Finance
World FinanceBest Investment Management
Company
Best
in Trade
Finance
Best in
Fund
Management
Best
FX Bank/
Provider
Awards and Citations, 2014-2019
Best
in Internet
Banking
Best
Retail Bank
The Asset
Best in
Internet
Banking
Best
in Trade
Finance
Best in Deposit Initiatives
The
Asian Banker
Best
in Cash Mgt. &
Transaction
Banking
Best
FX Bank/
Provider
Best in Social
Media
Initiatives
The
Asian Banker
The
Asian BankerBest Retail Bank in the Philippines
Best Trade Finance
Provider in the
Philippines
2016 Cash
Management Poll as
voted by Corporates On-line Banking Initiative of the Year
Automotive Lending Initiative of the Year
Mortgage & Home Loan Product of the Year
The
Asian Banker
Asian Banking &
Finance
Asiamoney
Asian Banking
& Finance
Asian Banking
& Finance
Global Finance
BSP
Outstanding PhilPaSS
Participant Servicing
Customer ePayments for
Commercial Banks
Gold Award - Top
Commercial Bank that
Generate the Largest
Overseas Filipino
Remittances
Asian Banking
& Finance
Social Media Initiative of the Year
The AssetBest Retail Social-Media
Banking Experience, Philippines (2015-2018)
The Asset
The Mortgage Product of the Year (2018)
Mortgage Business of the
Year
Excellence in
Investor
Relations
Best
in Trade
Finance
Best in
Fund
Management
Best
FX Bank/
Provider
Awards and Citations, 2014-2019
Best
in Internet
Banking
Asiamoney
FinanceAsia
Among the Most Trusted Brands
Reader’s Digest
Asset Management Company of the Year
The AssetImpact Investor of the Year Award
Best
FX Bank/
Provider
Best
in Fund
Management
Excellence in
Leadership &
Management
Excellence in
Investor
Relations(Individual Awards)
Best Managed Company in the Philippines – Large Cap
FinanceAsiaAmong the Best Managed Public
Companies
Asiamoney
Nestor V. TanBest Executive
Most Organized Investor Relations
Best IR Company (Philippines)
Among the Best Senior Management IR Support
Teresita T. Sy-CosonAsia’s Best CEO Award
Best FX Provider in the
Philippines
Best Investment
Management Company -
Philippines
Teresita T. Sy
Management Man of
the Year 2016
Among the Best at
Investor Relations
FinanceAsiaManagement
Association of
the Philippines
World Finance
Global Finance
Corporate
Governance
Asia
Luis S. Reyes, Jr.Best IR Professionals (Phils)
Corporate
Governance
Asia
Nestor V. Tan.Asia’s Best CEO Award
Best Corporate CommunicationsBest Wealth Manager, Philippines (2017)
Institutional
InvestorNestor V. Tan
Best CEO – Emerging Markets (Philippines)
40
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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
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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:
4/F South Tower, BDO Corporate Center 7899 Makati Avenue, Makati City 0726, Philippines
Phone: (632) 840 7000 (loc. 6069)
Fax: (632) 878 4151
Email: [email protected]
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Other Relevant Links:
BDO 2018 Annual Report
https://www.bdo.com.ph/sites/default/files/pdf/BDO%20Unibank%202018%20Annual%20Report.pdf
BDO 2018 Annual Report Financial Supplements
https://www.bdo.com.ph/sites/default/files/pdf/BDO%20Unibank%202018%20Annual%20Report%20Financial%20Supple
ments.pdf
Thank you.
www.bdo.com.ph