January 2021 Investor Presentation 9M20 Results...BPI MBT LBP CHIB PNB RCBC SECB UBP BCOM 2,186...
Transcript of January 2021 Investor Presentation 9M20 Results...BPI MBT LBP CHIB PNB RCBC SECB UBP BCOM 2,186...
Investor Presentation9M20 Results
January 2021
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 P3.3 Tn (USD65.20 Bn).
• A full-service universal bank with one of the widest distribution networks consisting of more than 1,400 operating branches and over 4,400 ATMs nationwide.
• Part of the SM Group, one of the country’s largest conglomerates.
About BDO
3
1996 2001 2002 2003 2005 2007 2008 2009 2012 2014 2015 2016 2017 2018 2019
4
Milestones• Expansion through organic growth and M&As
1967
KB license
1994
P77 BN
Merged with Dao Heng
Bank Philippines
P36 BN
U/KB license
Acquired 1st e-Bank’s
banking business
P121 BN Acquired UOB Philippines’ branch banking business
P234 BN
Acquired Rural Bank of San Juan’s banking business
P1.2 TNAcquired Citibank Savings, DB
Trust and Real Bank
P1.9 TN
Acquired One Network Bank
(rebranded as BDO Network Bank)
Acquired by SM Group
1976
Assets
P13 BN
P617 BN
Merged with Equitable PCI Bank.
Acquired Amex Savings Bank PhilippinesP2 TN
Est. as Acme
Savings Bank
Acquired Banco Santander Philippines
P149 BN
Acquired exclusive franchise of Diners Club
Int’l and full control of Generali Pilipinas Life
(renamed as BDO Life Assurance)
P2.3 TN
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
P3.0 TN
Acquired RB
Pandi banking
business
P3.2 TN
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
16 International Offices
Luzon 497
Metro Manila 618
Visayas 162
Mindanao 193
As of 31 December 2020
6
Market Reach• Wide and extensive coverage in key areas
North America – 2
Remittance Offices
Philippines
1,470 Branches & Offices[1]
4,400+ATMs
Asia – 11
2 Full-service Branches
6 Remittance Offices
3 Representative Offices
Middle East – 1
Representative Office
Europe – 2
Remittance Offices
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
1,418
775
523
332196
103 102 71 67 40
BPI MBT LBP CHIB PNB RCBC SECB UBP BCOM
2,186
1,4191,256
803594 579
452 447 376 332
BPI MBT LBP CHIB PNB RCBC SECB DBP UBP
2,575
1,9771,735 1,685
827 755 738540 497 436
LBP MBT BPI CHIB DBP PNB UBP RCBC SECB
Notes:
Rankings and market shares based on compilation of consolidated published statements of condition (SOC) of U/KBs as of 30 Sept. 2020.
Industry AUM includes BPI Asset Mgt &Trust Corporation which is included in the BPI data.
Financials prepared by banks under BSP’s SOC requirements differ slightly from reported financials under SEC guidelines due to certain differences in
accounting rules followed by the two authorities.
3,252
2,362 2,260 2,188
1,029 1,014 948755 733 653
MBT LBP BPI PNB CHIB DBP UBP RCBC SECB
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Industry Ranking
Total Assets
(in PHP billions)
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 – 37%
BDO Market Share – 22%BDO Market Share – 18%
BDO Market Share – 18%
BDO Private Bank, Inc. 100%
BDO Capital & Investment Corporation 99.8760%
BDO Leasing and Finance, Inc. BDO -87.43%, BDO Capital – 1.11% (c )
BDO Network Bank (formerly ONB) 84.87%
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 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%
REMITTANCES INSURANCE PROPERTY
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%
Unicorn First Properties, Inc. 35% (a)
OTHERS
NLEX Corp. (formerly Manila North Tollways Corp.) 11.7%
• With equity investments in allied and non-allied enterprises
Organizational Structure
** not yet operational.
(a) For dissolution(b) Under liquidation(c) Sale subject to
regulatory approvals and closing conditions
BDO Securities Corporation 100%
BDO Remit (UK) Ltd. (formerly CBN London Ltd.) 100%
CBN Greece S.A. 99.92% (b)
BDO Remit (Ireland) Designated Activity Company. 100%
BDO remit (Spain) (CBN Remittance Center S.A.) 99.99%
BDO Finance Corporation 100%
6,863
6,756
6,737
6,703
6,660
6,564
6,312
6,307
6,285
6,285
5800 6000 6200 6400 6600 6800 7000
NorddeutscheLandesbak
Millenium BCP
OTP Bank
National Bank ofGreece
BDO Unibank
First CommercialBank
Turkiye Halk Bankasi
Nanyang CommercialBank
Hachijuni Bank
Zions Bancorporation
The Banker Top 1000 World Banks – Tier 1 Capital 2019
10
USD Million
210
Rank Origin Bank
214
211
213
216
217
218
219
212
215
The Banker Top Philippine Banks – Tier 1 Capital 2019
USD MillionBank
1
Rank
2
3
4
5
6
7
8
Acronyms:
BDO BDO Unibank PNB Philippine National Bank
PI Bank of the Philippine Islands RCBC Rizal Commercial Banking Corp.
CHIB China Banking Corp. SECB Security Bank Corp.
MBT Metropolitan Bank & Trust UBP Union Bank of the Philippines
11
6,660
5,445
4,936
2,454
2,123
1,602
1,404
1,383
MBT
BPI
PNB
SECB
CHIB
UBP
RCBC
Credit Ratings
Moody’s Fitch
26-Nov-2020 12-Oct-2020
Outlook Stable Stable
Bank Deposits (Foreign/Local)
Long Term Baa2 BBB-
Short Term P-2 F3
Senior Unsecured debt (Foreign) Baa2 BBB-
Other Short Term (P)P-2
BCA/Viability Rating
Baseline Credit Assessment (BCA) baa2
Adjusted BCA Rating baa2
Viability Rating bbb-
Support Rating 2
Support Rating Floor BBB-
Counterparty Risk Rating (CRR)* (Foreign/Local)
Long Term Baa1
Short Term P-2
Counterparty Risk (CR) Assessment (Local)
Long Term Baa1(cr)
Short Term P-2 (cr)
Source: Moody’s, Fitch,
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Trading Fact SheetStock Details
Type Common Shares
Stock Ticker BDO
ISIN PHY077751022
Exchange Philippine Stock Exchange
Par Value P10.00
Outstanding No. of Shares* 4,384,227,915
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
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Presentation Outline
I. Overview
II. Financial Highlights
III. Ownership, Board and Management
IV. Sustainability
V. Awards and Citations
9M20 P&L
(in PHP billion) 9M20 9M19 YoY%
Interest Income 119.4 120.2 -1%
Interest Expense 19.6 31.8 -38%
Net Interest Income 99.8 88.5 13%
Non-interest Income 36.8 44.1 -17%
Fee Income 20.2 25.4 -21%
Insurance Premiums 10.9 10.8 1%
Trading & FX 3.0 4.3 -30%
Others 2.8 3.6 -24%
Gross Operating Income 136.6 132.6 3%
Operating Expense 83.6 85.8 -3%
Policy Reserves 4.4 6.4 -31%
Pre-Provision Operating Profit 53.0 46.7 13%
Provisions 23.8 4.2 461%
Net Income Before Tax 29.1 42.5 -31%
Taxes 12.5 10.4 21%
Net Income 16.6 32.1 -48%
Return on Common Equity 6.0% 12.5%
BDO Conso
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3Q20 Balance Sheet
(in PHP billion) 3Q20 3Q19 YoY%
Resources
Reserve Assets 573.1 504.5 14%
Investment Securities 465.0 441.3 5%
Gross Customer Loans 2,202.8 2,071.3 6%
Investment Properties 16.2 17.9 -9%
Other Assets 51.4 57.2 -10%
Total Resources 3,308.4 3,092.2 7%
Liabilities
Deposits 2,574.6 2,409.0 7%
CASA 2,025.9 1,744.8 16%
Bills Payable/Sub-Debt 196.3 178.4 10%
Insurance Contract Liab. 52.8 38.4 37%
Other Liabilities 106.1 102.4 4%
Total Liabilities 2,929.8 2,728.1 7%
Total Capital 378.6 364.0 4%
Total Liabilities & Capital 3,308.4 3,092.2 7%
BDO Conso
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BDO Loan Growth vs. Industry
20%
17%
16%
18%
15%
9%6%
20%
14%
17%
19%
16%
11%
2%
0%
5%
10%
15%
20%
25%
2014 2015 2016 2017 2018 2019 3Q20
BDO
Industry
Min
CET1
Ratio
with D-
SIB
Capital Adequacy Ratioa
ConsoParent
a Per SOC, BSP
Net Income & ROE
18
Industryb
ROE (%) 9.8 10.5 10.0 9.3 10.3 8.0
b U/KBs; as of June 2020 c Annualized
c
CET 1
CAR
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Income Statement(in PHP billion) 2015 2016 2017 2018 2019 9M20
Interest Income 72.1 82.0 99.8 129.1 160.6 119.4
Interest Expense 15.2 16.4 18.0 30.7 40.7 19.6
Net Interest Income 57.0 65.6 81.8 98.3 119.9 99.8
Non-interest Income 31.8 41.6 47.2 49.7 60.6 36.8
Fee Income 19.4 22.2 28.9 30.7 35.3 20.2
Insurance Premiums - 8.1 9.9 11.8 14.8 10.9
Trading & FX 7.2 4.8 3.9 2.2 5.7 3.0
Others 5.3 6.5 4.5 5.0 4.9 2.8
Gross Operating Income 88.8 107.2 129.0 148.0 180.5 136.6
Operating Expenses 55.1 70.0 84.9 98.0 115.2 83.6
Policy Reserves - 4.3 5.8 5.2 8.9 4.4
Pre-Provision Operating Profit 33.7 37.2 44.1 49.9 65.4 53.0
Provisions 3.0 3.8 6.5 6.3 6.2 23.8
Income bef. Pre-Acquisition 30.7 33.4 37.6 43.6 59.2 29.1
Pre-Acquisition Income - (0.4) - - - -
Taxes 5.7 6.8 9.5 11.0 15.0 12.5
Net Income 25.0 26.2 28.1 32.7 44.2 16.6
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Balance Sheet(in PHP billion) 2015 2016 2017 2018 2019 3Q20
Resources
Reserve Assets 461.7 511.0 509.7 534.4 450.7 573.1
Investment Securities 225.8 269.0 332.9 385.2 435.9 465.0
Gross Customer Loans 1,279.4 1,482.0 1,754.9 2,020.1 2,208.1 2,202.8
Investment Properties 14.6 15.2 18.0 19.8 16.9 16.2
Other Assets 49.9 47.8 52.5 62.8 77.3 51.4
Total Resources 2,031.3 2,325.0 2,668.1 3,022.2 3,188.9 3,308.4
Liabilities
Deposits 1,663.9 1,905.2 2,121.0 2,420.0 2,485.2 2,574.6
Bills Payable/Sub-debt 107.6 110.6 140.5 153.7 177.6 196.3
Insurance Contract Liab. - 20.6 26.0 28.5 42.5 52.8
Other Liabilities 60.2 71.1 82.3 92.0 113.0 106.1
Total Liabilities 1,831.6 2,107.4 2,369.8 2,694.1 2,818.3 2,929.8
Total Capital 199.6 217.6 298.3 328.1 370.6 378.6
Total Liabilities & Capital 2,031.3 2,325.0 2,668.1 3,022.2 3,188.9 3,308.4
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Financial Performance Indicators2015 2016 2017 2018 2019 9M20
Profitability
Return on Ave. Common Equity 13.6% 12.7% 10.2% 10.7% 12.8% 6.0%
Return on Average Assets 1.3% 1.2% 1.1% 1.1% 1.4% 0.7%
Margins and Liquidity
Net Interest Margin (NIM) 3.2% 3.2% 3.5% 3.6% 4.2% 4.4%
Loan to Deposit Ratio 76.9% 77.8% 82.7% 83.5% 88.8% 85.6%
Liquid Assets to Total Assets 33.8% 33.5% 31.6% 30.4% 27.8% 31.4%
Liquidity Coverage Ratio (LCR) 108.4% 136.1%
Cost Efficiency
Cost to Income Ratio 62.1% 65.3% 65.8% 66.3% 63.8% 61.2%
Cost to Assets Ratio 2.8% 3.2% 3.4% 3.4% 3.7% 3.4%
Asset Quality
NPL Ratio 1.08% 1.15% 1.09% 0.96% 1.13% 1.97%
NPL Cover 171.8% 144.6% 149.6% 188.7% 169.0% 138.3%
Capital and Leveragec
CET1 11.2% 10.6% 12.9% 12.1% 12.6% 13.2%
Tier 1 Ratio 11.7% 10.9% 13.1% 12.3% 12.8% 13.4%
Capital Adequacy Ratio (CAR) 13.3% 12.3% 14.5% 13.7% 14.2% 14.3%
Basel III Leverage Ratio (BLR) 10.0% 10.1%aPer BSP Circ. 941 8 9 10 11 12 12bPer BSP Circ. 1011cPer SOC, BSP
Basel III
b bb
a aaa
Presentation Outline
I. Overview
II. Financial Highlights
III. Ownership, Board and Management
IV. Sustainability
V. Awards and Citations
23
Shareholder Structure
• Majority owned by the SM Group
As of 31 December 2020
Name Nationality Shareholdings
Percentage
of
Ownership
SM Investments Corp. Filipino 1,750,930,649 39.94%
PCD Nominee Foreign 1,107,217,814 25.25%
PCD Nominee Filipino 1,029,668,627 23.49%
Multi-Realty Development Corporation
SM Prime Holdings
Filipino
Filipino
282,890,230
90,024,395
6.45%
2.05%
Sub-Total, Top Shareholders 97.18%
Total Shares Outstanding* 4,384,227,915
Source: Top 100 Shareholders as of 31 December 2020
Financial
Services
Property
Retail
Access to SM’s customer
network
• Over 19,100 PHL tenants
• More than 9,500 suppliers
• 4.4 million average daily foot
traffic (not including China)
• 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 South East Asia with
strong presence in lifestyle mall
operations and residential
developments
• Dominant domestic mall
developer/operator - 76 malls in
the Philippines with GFA of 8.6
mn sqm (with 7 more malls in
China).
• Largest local retail chain with 2,913
stores nationwide (64 The SM Store,
1,525 specialty retail outlets, 58 SM
Supermarkets, 52 SM Hyper-
markets, 207 Savemore, 61
WalterMart, and 946 Alfamart).
• Biggest domestic banking
operations
• Interests in BDO and China Bank
The SM Group• Harnessing synergies with the country’s largest conglomerate
24
Board of Directors
25
7 directors have an average
of 35 years of banking
experience, including a
former Partner and Head of
Asia Financials Research at
Goldman Sachs
Experienced
Bankers
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
Legal Experts
2 directors are successful
businesspersons who have
made their mark in their
respective fields
Successful
Entrepreneurs
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
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.
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
Jones M. Castro Jr.
Lead 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
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
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
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
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
• With broad business and professional experience
26
Corporate Support
Products, Services and SubsidiariesIntermediation
Nestor V. Tan
President and CEO
With BDO since 1997
Over 38 years of banking experience
Evelyn C. Salagubang
Head — HRG Recruitment
With BDO since 2007
Over 26 years experience in HR
Roberto E. Lapid
President — BDO Leasing and Finance
With BDOLF since 1993
Over 35 years of banking experience
Maria Theresa L. Tan
General Manager — BDO Insurance Brokers
With BDO since 2009
Over 23 years banking and insurance experience
Walter C. Wassmer
Head — Institutional Banking
With BDO since 1997
Over 31 years of banking experience
Lucy Co Dy
Head — Controllership
With BDO since 1985
Over 31 years of banking experience
Estrellita V. Ong
Head — Internal Audit
With BDO since 2011
Over 24 years experience in audit
Frederic Mark S. Gomez
Head — I.T.
With BDO since 2017
Over 30 years of financial and I.T. experience
Jaime C. Yu
Head — Branch Banking
With BDO since 1997
Over 35 years of banking experience
Edwin Romualdo G. Reyes
Head — Transaction Banking
With BDO since 2015
Over 31 years banking experience
Eduardo V. Francisco
President — BDO Capital & Investment
With BDO since 1999
Over 31 years of banking experience
Jesus Antonio Saldaña Itchon
President, BDO Network Bank
With BDO since 2017
Over 31 years of banking experience
Evelyn L. Villanueva
Head — Risk Management
With BDO since 2002
Over 31 years of banking experience
Albert Santiago Yeo
President — BDO Private Bank
With BDO since 2017
Over 33 years of banking experience
Renato Vergel de Dios
President & CEO – BDO Life Assurance
With BDO since 2016
Over 41 years of insurance experience
Rolando C. Tanchanco
Head — Consumer Banking
With BDO since 2004
Over 26 years of banking experience
Luis S. Reyes Jr.
Head — IR & Corplan
With BDO since 2003
Over 40 years of banking experience
Ricardo V. Martin
COS-OP, Head — Compliance and Legal
With BDO since 2007
Over 37 years banking experience
Alvin C. Go
Head — Legal
With BDO since 2013
In the practice of law for 31 years
Dalmacio D. Martin
Head — Treasury
With BDO since 2009
Over 31 years of banking experience
Rafael G. Ayuste Jr.
Head — Trust and Investments
With BDO since 2014
Over 30 years of banking experience
Joseph Albert L. Gotuaco
Head — Central Operations Group
With BDO since 2019
Over 30 years of banking experience
Atty. Federico P. Tancongco
Chief Compliance Officer
With BDO since 2005
Over 25 years of banking experience
Senior Management Team • With extensive professional banking expertise
Presentation Outline
I. Overview
II. Financial Highlights
III. Ownership, Board and Management
IV. Sustainability
V. Awards and Citations
Sustainability Report for 2019
Outlines BDO’s sustainability strategies covering:
• Products
• Sustainability contribution
• Human capital
• Disaster response
• Governance
Reports on the Bank’s 2019 economic, environmental,social and governance performance
Prepared in accordance with the GRI Standards: Coreoption and completed the GRI Materiality DisclosuresService
28Full report can be accessed at BDO 2019 Sustainability Report
A substantiation of BDO’s commitment to the UN
Sustainable Development Goals, principles of UN Global
Compact and Greenhouse Gas Protocol
BDO’s Path in Creating Shared Value
In Support of the UN Sustainable Development Goals
Sustainability PhilosophyWe seek to achieve strategic resilience by incorporating sustainability in the waywe do business. We aim to embed sustainability principles when makingdecisions, assessing relationships, and creating products
31
Alignment with the United Nations Global
Compact Principles
BDO supports the principles of the United Nations Global Compact. The Bankupholds: Corporate governance Climate-friendly solutions and opportunities for business Access to clean, renewable, and reliable energy sources and services The adoption of instruments that help quantify, manage, and report the carbon
footprint of our businesses The responsibility to protect the dignity of every person and uphold human rights The recognition of the role of women in achieving economic growth and poverty
reduction The elimination of all forms of forced, compulsory, and child labor
Sustainability Framework
32
Sustainable Finance Framework
Covers the following Sustainable Finance Instruments
• Green Bonds
• Social Bonds
• Sustainability Bonds
• Loans
• Other Debt Financing Instruments
The Press Release can be viewed at SFF Press Release while the Sustainable Finance Framework can be accessed at BDO
Corporate Governance
With Second Party Opinion from Sustainalytics*
• Credible
• Impactful
• Aligns with the Sustainability Bond Guidelines in 2018, Green Loan Principles 2020, and the ASEAN Sustainability Bond Standards 2018
Originated from Social and Environmental Management Systems (SEMS) policy instituted in 2010 with IFC assistance
* A leading independent Environmental, Social and Governance (ESG) research and ratings provider
Expands scope of financing through Sustainable Finance Desk
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
(2019-2020)
Among the recipients of the 6th and 7th Asian Excellence
Award
Corporate Governance Asia
Teresita T. Sy-Coson Asian 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
& FinanceCorporate Social Responsibility Program
of the Year – Gold (2017-2018)
34
BDO Unibank is a
constituent of the
FTSE4Good Index
http://www.ftse.com/products/indice
s/FTSE4Good
2019 Asia Corporate Excellence
and Sustainability
(ACES) Awards
Industry Champion of the Year
Forbes 2018GLOBAL 2000
Top Regarded Companies (#140) Top World’s Best Employers (#24)
Presentation Outline
I. Overview
II. Financial Highlights
III. Ownership, Board and Management
IV. Sustainability
V. Awards and Citations
Awards and Citations, 2015-2020
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
(2018-2019)
36
Best
Debt/Equity,
M&A
House
Best
Investment
Bank
Best
Private
Bank
Best Project
Finance
Bank
Best Retail &
Wholesale
Bank
Awards and Citations, 2015-2020
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
PhilippinesFinanceAsia FinanceAsia FinanceAsia
The Asset
The Asset
The Asset The AssetThe Asset
Euromoney
Global Finance
Asian Private
Banker
Asiamoney Asiamoney
AsianInvestor
Euromoney
Asiamoney
Project Finance
Magazine
Global Finance
World FinanceBest Investment Management
Company
Best
in Trade
Finance
Best in
Fund
Management
Best
FX Bank/
Provider
Awards and Citations, 2015-2020
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, 2015-2020
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
FinanceAsia
Among 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 (2016)
Nestor V. Tan (2019)
Management Man of
the Year Among the Best at
Investor Relations
FinanceAsia
Management
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
Investor
Nestor V. TanBest CEO – Emerging Markets
(Philippines)
Corporate
Governance
Asia15th Asian ESG
Awards 2019Teresita T. Sy-Coson,
ChairpersonAsian Corporate Director of the
Year
Nestor V. TanPresident & CEO
Asian Corporate Director of the Year
International Banker
Nestor V. Tan
Banking CEO of the Year (2019)
40
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exclusive property of BDO Unibank, Inc. (“BDO”) and shall only be used for the purpose intended herein. None of the information
contained in this Presentation constitutes a solicitation, offer, opinion, or recommendation by BDO to buy or to sell any securities or
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statements in this Presentation, other than statements of historical facts, that address activities, events, or developments that BDO
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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) 8 840 7000 (loc. 6069)
Fax: (632) 8 878 4151
Email: [email protected]
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Other Relevant Links:
BDO 2019 Annual Report
https://www.bdo.com.ph/sites/default/files/pdf/BDO-Unibank-2019-Annual-Report-B.pdf
BDO 2019 Annual Report Financial Supplements
https://www.bdo.com.ph/sites/default/files/pdf/BDO%20Unibank%202019-Annual-Report-Financial-Supplements.pdf
BDO 2019 Audited Financial Statements
https://www.bdo.com.ph/sites/default/files/pdf/BDO%20-
%20Audited%20Financial%20Statements%20(February%2027,%202020).pdf
Thank you.
www.bdo.com.ph