Best Asian Bank Investor... · Taiwan 8 824 Domestic Branches 14 International Offices 2,339...
Transcript of Best Asian Bank Investor... · Taiwan 8 824 Domestic Branches 14 International Offices 2,339...
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Best Asian Bank
Investor Presentation
April 2014
Presentation Outline
I. OVERVIEW
II. FINANCIAL HIGHLIGHTS
III. OWNERSHIP, BOARD, AND MANAGEMENT
IV. AWARDS AND CITATIONS
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• The Philippines’ largest bank as at 31 Dec 2013 with total assets of P1.7 Tn (USD 37.7 Bn).
• A full service universal bank with one of the widest networks of over 800 operating branches and more than 2,200 ATMs nationwide.
• Has one of the country’s strongest Board of Directors in terms of banking experience and corporate governance.
• Part of the SM Group, one of the country’s largest conglomerates.
About BDO
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Deposit and
related products
Over-the-counter
transactions
Cross-selling
distribution platform
Cash management
services
Electronic banking
ATMs
Prepaid cards
Merchant acquiring
Remittances
Brokerage
Bancassurance
Investment
management
Unit investment
trust funds
Living trusts
Retirement funds
Special trusts /
custodianship
Auto
Mortgage
Credit cards
Personal loans
Corporate and
middle market
lending
Trade finance
Specialized lending
Financial Institutions
Cross-border
financing
Underwriting and
distribution of
Fixed income and
equity securities
Financial advisory
Project finance
Loan syndication
Wealth advisory
Customized portfolio
management
Fixed income
dealership
Foreign exchange
transactions
Portfolio
management
Liquidity
management
Direct lease, sale
and leaseback
arrangements
Installment paper
purchases
Receivable
discounting
and factoring
Full Service Bank
Branch
Banking
Transaction
BankingInsurance Trust Banking
Consumer
Lending
Corporate &
Institutional
Banking
Investment
Banking
Private
Banking
Treasury
Services
Leasing &
Finance
Complete range of financial products and services
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Market Reach
Wide and extensive coverage in key areas
North
America
3
Europe
2
Middle
East
1
SEA, HK &
Taiwan
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824 Domestic Branches
14 International Offices
2,339 Domestic ATM’s
as of 8 April 2014
Luzon 248
Philippines
824
M. Manila 427
Visayas 90
Mindanao 59
606
282 253 224 213162 125 118
645
911
BPI MBT LBP PNB China RCBC SECB DBP UBP
576
325
218
67 66 64 577995
773
BPI MBT SChart UCPB RCBC China HSBC DBP LBP
991
706
460
297 251 233354 299
1,017
1,345
MBT BPI LBP PNB China UBP RCBC DBP UCPB
1,3781,183
843
599427 412 391 347
437
1,678
MBT BPI LBP PNB DBP RCBC China UBP SECB
Total Assets
BDO Market Share – 17%
(in PHP billions)
BDO Market Share – 21%
(in PHP billions)
BDO Market Share – 18%
(in PHP billions)
BDO Market Share – 30%
(in PHP billions)
Source: Company data, consolidated statements of condition (SOC). Ranking as at 31 December 2013
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
Industry Ranking
Gross Customer Loans
Customer Deposits Assets Under Management
No. 1 among Philippine banks
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Business Franchise
#1
Loans
#1
Deposits
#1
Remittance
#1
Trust and
Asset Mgt
#1
Private
Banking
Leading Trade
Services Provider1
Major Player in
Cash Management2
#1
Credit Cards3
#2
Leasing &
Finance
#1
Investment
Banking4
#1 Local
Insurance
Brokerage5
Market-leading positions in almost all business lines
Notes:1 According to The Asian Banker, Global Finance, The Asset, & Trade Finance Magazine2 According to The Asset3 In terms of cardholder base & merchant acquiring gross billings4 In terms of corporate issuances5 No. 1 among insurance brokers in terms of commissions earned for 2012; No. 3 in terms of premiums produced (No. 1 among local firms)
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999
Acquired GE
Money Bank
Est. as Acme
Savings Bank
Acquired by
SM Group
KB license
Merged with Dao Heng
Bank Philippines
Acquired 1st e-Bank’s
banking business
Acquired
Banco
Santander
Philippines
Acquired UOB Philippines’
branch banking business
Merged with Equitable
PCI Bank.
Acquired Amex Savings
Bank Philippines
Assets
P13 BN
P36 BN
P77 BN
P121 BN
P149 BN
P234 BN
P862 BN
P1.0 TN
Commercial Bank Expansion
19761968 1994
P617 BN
Acquired Rural
Bank of San Juan
P1.2 TN P1.7 TN
U/KB license
Milestones
Expansion through organic growth and M&A
20011996 2002 2003 2005 2007 2009 20122010 2013 2014
Acquired Citi
Savings Bank
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Trading Fact Sheet
Type Common Shares
Stock Ticker BDO
ISIN PHY077751022
Exchange Philippine Stock Exchage
Par Value P10.00
Outstanding No. of Shares 3,580,875,328
Foreign Owneship Up to 40%
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 Branch
Stock Details
American Depositary Receipts (ADR) Program Details
Presentation Outline
I. OVERVIEW
II. FINANCIAL HIGHLIGHTS
III. OWNERSHIP, BOARD, AND MANAGEMENT
IV. AWARDS AND CITATIONS
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(in PHP billion) 2009 2010 2011 2012 2013
Interest Income 48.8 49.9 50.5 54.0 56.6
Interest Expense 18.3 15.8 16.7 17.9 13.4
Net Interest Income 30.6 34.2 33.8 36.1 43.2
Non-interest Income 15.5 17.8 20.9 24.4 31.8
Fee Income 9.6 10.4 12.3 13.4 15.5
Trading & FX 3.6 5.8 5.6 8.2 12.8
Others 2.3 1.6 3.0 2.8 3.6
Gross Op Income 46.0 52.0 54.7 60.6 75.0
Operating Expense 32.1 34.8 36.3 39.5 43.2
Pre-Prov Op Profit 13.9 17.2 18.4 21.1 31.8
Provisions 6.2 6.7 6.1 4.9 7.0
Taxes 1.7 1.6 1.6 1.6 2.1
Net Income 6.0 8.8 10.5 14.5 22.6
2009 to 2013 Income Statement
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(in PHP billion) 2009 2010 2011 2012 2013
Resources
Reserve Assets 176.6 229.6 203.5 201.2 491.5
Investment Securities 171.7 197.3 188.4 237.3 227.9
Gross Customer Loans 472.7 541.5 670.1 769.0 911.5
Investment Properties (net) 13.8 12.0 10.1 9.1 10.4
Other Assets 27.2 20.5 25.1 25.0 31.5
Total Resources 862.0 1,000.9 1,097.3 1,241.6 1,672.8
Liabilities
Deposits 694.7 782.6 858.6 931.6 1,345.3
Bills Payable/Sub-Notes 54.6 89.0 97.7 72.2 94.2
Other Liabilities 44.9 40.5 44.4 55.2 65.8
Total Liabilities 794.2 912.1 1,000.4 1,087.2 1,508.4
Total Capital 67.9 88.7 97.0 154.4 164.4
Total Liabilities & Capital 862.0 1,000.9 1,097.3 1,241.6 1,672.8
2009 to 2013 Balance Sheet
393
473
542
670
769
911
0
100
200
300
400
500
600
700
800
900
1,000
2008 2009 2010 2011 2012 2013
(P bn)
637695
783859
932
1,345
100
250
400
550
700
850
1,000
1,150
1,300
1,450
2008 2009 2010 2011 2012 2013
(P bn)
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Key Growth Indicators
Gross Customer Loans Deposits
YoY Gr 32% 20% 15% 24% 15% 19% YoY Gr 43% 9% 13% 10% 9% 44%
Steady expansion in core businesses
Net Income
Sustained growth with record profits in 2013
6.0
8.8
10.5
14.5
22.6
0
2
4
6
8
10
12
14
16
18
20
22
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2008 2009 2010 2011 2012 2013
(P bn)
2.2
15
16
Capital Adequacy Ratio (Consolidated)
9.9%9.0%
8.3%
10.0% 10.0%
15.2% 14.6%4.6%4.5%
4.1%
4.0%
5.6%
3.9%
1.2%
0%
5%
10%
15%
20%
2007 2008 2009 2010 2011 2012 2013
Tier 2
Tier 1
14.5%13.5%
12.4%
14.0%
15.6%
19.1%
17.1%
Min Total CAR
per Basel II
Min Tier 1 per
Basel II
Strong capital base to support growth
Comfortably above Basel III requirements
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Tier 1 Capital Ranking of Philippine Banks(as of 31 December 2012)
World Rank Country Name of Tier 1 Capital
Current Previous Rank Bank (in USD mn)
251 396 1 BDO Unibank, Inc. 3,413
333 375 2 Metropolitan Bank & Trust 2,400
386 409 3 Bank of the Phil. Islands 1,985
642 645 4 Rizal Commercial Banking 902
655 706 5 Security Bank 871
663 n/a 6 China Bank 858
702 768 7 Union Bank of the Phils. 759
765 699 8 Philippine National Bank 644
986 n/a 9 Philtrust Bank 355
992 n/a 10 East West Banking Corp. 351
The Banker Top 1000 World Banks – Tier 1 Capital
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Credit Ratings
Moody's Fitch Capital
Intelligence
Date 31 Mar 2014 16 May 2013 8 Oct 2013
Issuer/Debt Rating (IDR)
- Long Term Baa3 BB+ BB+
- Short Term Prime-3 B
Outlook Positive Stable Positive
Bank Financial Strength Rating D+ bb+ BBB-
(BFSR)/Individual/Viability Rating
Outlook Stable Stable
Baseline Credit Assessment (BCA) baa3
Adjusted BCA Rating baa3
Source: Moodys, Fitch and Capital Intelligence
Presentation Outline
I. OVERVIEW
II. FINANCIAL HIGHLIGHTS
III. OWNERSHIP, BOARD, AND MANAGEMENT
IV. AWARDS AND CITATIONS
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Shareholder Structure
SM Investments Corp. 40.9%
PCD Nominee Corp. (Non-Filipino) 30.0%
PCD Nominee Corp. (Filipino) 11.2%
Multi-Realty Development Corporation 8.8%
Sybase Equity Investments Corporation 5.1%
Sub-Total, Top Shareholders 96.0%
Top Shareholders as of 31 Dec 2013
Source: Top 100 Shareholders as of 31 Dec 2013
Majority owned by the SM Group
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Financial
Services
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Property
Retail
Access to SM’s
customer network
• Almost 16,000 Philippine
tenants
• More than 5,000 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
• Leading residential condominium
developer in Metro Manila in terms
of units sold
• Among the fastest growing
commercial, resorts and hotel
developers in the Philippines
• Largest local retail chain with 241
stores nationwide
• Dominant domestic mall
developer/operator - 48 malls with
GFA of almost 6.2 mn sqm
• 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 over 100 years’ combined experience
from both local and foreign banking institutions
2 directors are practicing attorneys who head their own law firms
Experienced
Bankers
Practicing
Lawyers
2 directors are successful businessmen who have made their
mark in the fields of retailing, real estate, and commercial
operations
Successful
Entrepreneurs
Board of Directors
One of the strongest Board of Directors in the industry
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 — first appointed to the Board in 1998
Holds Directorships of numerous BDO subsidiaries
Director of the Bankers Association of the Philippines
MBA Wharton School
Cheo Chai Hong
Director — first appointed to the Board in 2010
Director of UOB (Philippines), UOB Global Capital Private,
UOB (Thai) and Encus International
Head of Corporate Planning and International of UOB Group
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
Henry T. Sy Jr.
Director — first appointed to the Board in 2007
Vice Chairman of SMIC and of SM Dev. Corp.
President of National Grid Corporation of the Philippines
Director in several companies within SM Group
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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Arthur L. Tan
Head — IT Operations
With BDO since 2002
15-year banking experience
Dennis B. Velasquez
Head — Central Operations
With BDO since 1995
31-year banking experience
Evelyn L. Villanueva
Head — Risk Management
With BDO since 2002
31-year banking experience
Evelyn C. Salagubang
Head — Human Resources
With BDO since 2007
18-year experience in HR
Luis S. Reyes Jr.
Head — IR & Corplan
With BDO since 2003
30-year banking experience
Rafael G. Besa
Head — Marketing
With BDO since 2007
7-year banking experience
Ricardo V. Martin
Head — Compliance & Legal
With BDO since 2001
31-year banking experience
Lucy Co Dy
Head — Comptrollership
With BDO since 1985
35-year banking experience
Corporate Support
Walter C. Wassmer
Head — Business Lending
With BDO since 1997
31-year banking experience
Rolando C. Tanchanco
Head — Consumer Lending
With BDO since 2004
23-year banking experience
Jaime C. Yu
Head — Branch Banking
With BDO since 1997
29-year banking experience
Pedro M. Florescio III
Head — Treasury
With BDO since 2001
27-year banking experience
ServicesIntermediation
Nestor V. Tan
President With BDO since 1997
30-year banking experience
Ador A. Abrogena
Head — Trust and Investments
With BDO since 1990
34-year banking experience
Jonathan C. Diokno
Head — Remittance Origination
With BDO since 2001
18-year banking experience
Josefina N. Tan
Head — Private Banking
With BDO since 2003
36-year banking experience
Eduardo V. Francisco
Head — Investment Banking
With BDO since 1999
25-year banking experience
Emmanuel T. Narciso
SVP — Transaction Banking
With BDO since 2011
28-year banking experience
Evylene C. Sison
Head — Asset Management
With BDO since 2010
21-year banking experience
Maria Theresa L. Tan
General Manager — BDO Insurance
With BDO since 2009
20-year banking and insurance experience
Geneva T. Gloria
Head — Remittance Distribution
With BDO since 2003
24-year banking experience
Senior Management Team
With extensive professional banking expertise
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BDO UNIBANK, INC.
PHILIPPINE PARENT BANK
With equity investments in allied and non-allied enterprises
Organizational Structure
Financial Companies Insurance Companies Real Estate Companies Service Companies
BDO Private Bank, Inc.
(100%)
BDO Capital & Investment
Corporation (100%)
BDO Securities
Corporation (100%)
CBN Grupo
International
Holdings B.V. (60%)
Averon Holdings
Corporation (100%)
PCIB Securities, Inc.
(100%)
Express Padala (HK) Ltd.
(100%)
Express Padala Frankfurt
GmbH (100%)
BDO Leasing and Finance,
Inc. (87%); BDO Capital &
Investment Corporation
(11.11%)
BDO Rental, Inc.
(100%)
Citibank Savings, Inc.
(99.99%)
ArmstrongSecurities,
Inc. (80%)
BDO Remit (Italia)
S.p.A. (100%)
BDO Remit Limited
(100%)
BDO Remit (Macau)
Ltd. (100%)
BDO Remit (USA), Inc.
(100%)
BDO Insurance Brokers,
Inc. (100%)
Generali Pilipinas Holding
Co., Inc. (BDO – 38.05% &
BDO Cap – 1.95%)
BDORO Europe Ltd.
(100%)
Equimark-NFC
Development Corp. (60%)
SM Keppel Land, Inc.
(50%)
Taal Land, Inc.
(33%)
NorthPine Land, Inc.
(20%)
Manila North Tollways Corp.
(12%)
BDO Strategic Holdings Inc.
(100%)
Presentation Outline
I. OVERVIEW
II. FINANCIAL HIGHLIGHTS
III. OWNERSHIP, BOARD, AND MANAGEMENT
IV. AWARDS AND CITATIONS
27
“. . . the first time Finance Asia
has given this award to a
Philippine bank . . .”
Institutional Awards and Citations, 2013-2014
Best Asian Bank
Best Bank in the Philippines
EUROMONEY
Institutional Awards and Citations, 2013-2014
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29
Best Private Bank in the Philippines
Institutional Awards and Citations, 2013-2014
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Best Investment Bank in the Philippines
Institutional Awards and Citations, 2013-2014
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Best Bond House
Institutional Awards and Citations, 2013
Best Equity House
32
Platinum Award
Institutional Awards and Citations, 2013
Annual
Recognition
Excellence in Corporate Governance
33
Platinum Award Most Organized Investor Relations
Institutional Awards and Citations, 2013
Among the Best Senior Management IR
Support
Among the Best Investor Relations Companies in the
Philippines
Excellence in Investor Relations
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Individual Awards and Citations, 2013
Nestor V. Tan
One of Asia’s Best CEOs
(Investor Relations)
Luis S. Reyes, Jr.
One of the Best IR
Professionals (Phils)
Pedro M. Florescio
One of Asia’s Best CFOs
(Investor Relations)
Excellence in Investor Relations
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Teresita T. Sy
Chairperson - BDO
One of Asia’s Best CEOs
(Investor Relations)
Among the 8 Most Powerful
Women in Southeast Asia
One of Forbes Asia’s
Most Powerful Women
Individual Awards and Citations, 2013-2014
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Product/Transaction Awards & Citations, 2013
Best Retail Bank in the Philippines
37
Product/Transaction Awards & Citations, 2013
Fund House of the Year
BDO Trust and Investments Group
38
Best in Trade
Finance
Leading Counter-
party Bank
Product/Transaction Awards & Citations, 2013
39
Best FX Bank/Provider
Product/Transaction Awards & Citations, 2013
40
Gold Trusted BrandCredit Card Initiative
of the Year
Product/Transaction Awards & Citations, 2013
Thank you.
www.bdo.com.ph