BDO and Philippine Banking Looking Back 2 Banco De Oro early - - PowerPoint PPT Presentation

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BDO and Philippine Banking Looking Back 2 Banco De Oro early - - PowerPoint PPT Presentation

Mar 12, 2023 12 likes •556 views

5 October 2017 BDO and Philippine Banking Looking Back 2 Banco De Oro early 1990s 1967 Aurora Boulevard, Cubao, Quezon City 3 The lady who started it all 1967 4 Industry Ranking in Total Assets 1997 U/KBs P bn 1 MBT 247 2

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SLIDE 1

5 October 2017

BDO and Philippine Banking

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SLIDE 2

2

Looking Back

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SLIDE 3

1967

3

Banco De Oro early 1990s

Aurora Boulevard, Cubao, Quezon City

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SLIDE 4

1967

4

―The lady who started it all‖

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SLIDE 5

Industry Ranking in Total Assets

1997 U/KBs P bn 1 MBT 247 2 PNB 242 3 BPI 166 4 LBP 156 5 PCIB 152 6 FEBTC 144 7 Citi 119 8 BA 109 9 RCBC 103 10 EBC 102 20 BDO 39

5

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SLIDE 6

1967

6

Banco De Oro circa 1997

Ortigas Center

Getting Started

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SLIDE 7

7

―To be the preferred bank in every market we serve”

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SLIDE 8

Milestones

1967

KB license

1994

Acquired by SM Group

1976

Assets P13 BN

  • Est. as

Acme Savings Bank

  • Expansion through organic growth and M&As
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SLIDE 9

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 by SM Group

1976

Assets P13 BN

  • Est. as

Acme Savings Bank

2003

Acquired Banco Santander Philippines

P149 BN Niche Strategy

  • Expansion through organic growth and M&As

IPO

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SLIDE 10

1997 U/KBs P bn 1 MBT 247 2 PNB 242 3 BPI 166 4 LBP 156 5 PCIB 152 6 FEBTC 144 7 Citi 119 8 BA 109 9 RCBC 103 10 EBC 102 20 BDO 39

Industry Ranking in Total Assets

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SLIDE 11

Industry Ranking in Total Assets

1997 U/KBs P bn 2002 U/KBs P bn 1 MBT 247 1 MBT 434 2 PNB 242 2 BPI 332 3 BPI 166 3 EPCI 261 4 LBP 156 4 LBP 248 5 PCIB 152 5 Citi 217 6 FEBTC 144 6 PNB 186 7 Citi 119 7 RCBC 156 8 BA 109 8 DBP 151 9 RCBC 103 9 BDO 120 10 EBC 102 10 CHIB 106 20 BDO 39

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SLIDE 12

Industry Ranking in Total Assets

1997 U/KBs P bn 2002 U/KBs P bn 2006 U/KBs P bn 1 MBT 247 1 MBT 434 1 MBT 642 2 PNB 242 2 BPI 332 2 BPI 578 3 BPI 166 3 EPCI 261 3 LBP 361 4 LBP 156 4 LBP 248 4 EPCI 344 5 PCIB 152 5 Citi 217 5 BDO 306 6 FEBTC 144 6 PNB 186 6 PNB 245 7 Citi 119 7 RCBC 156 7 DBP 236 8 BA 109 8 DBP 151 8 RCBC 227 9 RCBC 103 9 BDO 120 9 Citi 211 10 EBC 102 10 CHIB 106 10 UBP 184 20 BDO 39

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SLIDE 13

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 by SM Group

1976

Assets P13 BN P617 BN

2007

Merged with Equitable PCI Bank. Acquired Amex Savings Bank Philippines

  • Est. as

Acme Savings Bank

2003

Acquired Banco Santander Philippines

P149 BN Full-Service Bank Strategy

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SLIDE 14

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 GE Money Bank

2008 2009

P862 BN

2012

Acquired Rural Bank of San Juan’s banking business

P1.2 TN

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

2007

Merged with Equitable PCI Bank. Acquired Amex Savings Bank Philippines

2016

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

  • Est. as

Acme Savings Bank

2003

Acquired Banco Santander Philippines

P149 BN P2.3 TN P802 BN Full-Service Bank Strategy

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SLIDE 15

Industry Ranking in Total Assets

1997 U/KBs P bn 2002 U/KBs P bn 2006 U/KBs P bn 1 MBT 247 1 MBT 434 1 MBT 642 2 PNB 242 2 BPI 332 2 BPI 578 3 BPI 166 3 EPCI 261 3 LBP 361 4 LBP 156 4 LBP 248 4 EPCI 344 5 PCIB 152 5 Citi 217 5 BDO 306 6 FEBTC 144 6 PNB 186 6 PNB 245 7 Citi 119 7 RCBC 156 7 DBP 236 8 BA 109 8 DBP 151 8 RCBC 227 9 RCBC 103 9 BDO 120 9 Citi 211 10 EBC 102 10 CHIB 106 10 UBP 184 20 BDO 39 2007 U/KBs P bn 1 MBT 707 2 BDO 621 3 BPI 617 4 LBP 383 5 DBP 241 6 PNB 240 7 RCBC 239 8 Citi 211 9 UBP 187 10 CHIB 175

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SLIDE 16

Industry Ranking in Total Assets

1997 U/KBs P bn 2002 U/KBs P bn 2006 U/KBs P bn 1 MBT 247 1 MBT 434 1 MBT 642 2 PNB 242 2 BPI 332 2 BPI 578 3 BPI 166 3 EPCI 261 3 LBP 361 4 LBP 156 4 LBP 248 4 EPCI 344 5 PCIB 152 5 Citi 217 5 BDO 306 6 FEBTC 144 6 PNB 186 6 PNB 245 7 Citi 119 7 RCBC 156 7 DBP 236 8 BA 109 8 DBP 151 8 RCBC 227 9 RCBC 103 9 BDO 120 9 Citi 211 10 EBC 102 10 CHIB 106 10 UBP 184 20 BDO 39 2007 U/KBs P bn 2008 U/KBs P bn 1 MBT 707 1 BDO 808 2 BDO 621 2 MBT 758 3 BPI 617 3 BPI 658 4 LBP 383 4 LBP 434 5 DBP 241 5 DBP 291 6 PNB 240 6 PNB 277 7 RCBC 239 7 RCBC 270 8 Citi 211 8 UBP 208 9 UBP 187 9 CHIB 207 10 CHIB 175 10 Citi 188

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SLIDE 17

Industry Ranking in Total Assets

1997 U/KBs P bn 2002 U/KBs P bn 2006 U/KBs P bn 1 MBT 247 1 MBT 434 1 MBT 642 2 PNB 242 2 BPI 332 2 BPI 578 3 BPI 166 3 EPCI 261 3 LBP 361 4 LBP 156 4 LBP 248 4 EPCI 344 5 PCIB 152 5 Citi 217 5 BDO 306 6 FEBTC 144 6 PNB 186 6 PNB 245 7 Citi 119 7 RCBC 156 7 DBP 236 8 BA 109 8 DBP 151 8 RCBC 227 9 RCBC 103 9 BDO 120 9 Citi 211 10 EBC 102 10 CHIB 106 10 UBP 184 20 BDO 39 2007 U/KBs P bn 2008 U/KBs P bn Jun-17 U/KBs P bn 1 MBT 707 1 BDO 808 1 BDO 2,472 2 BDO 621 2 MBT 758 2 MBT 1,972 3 BPI 617 3 BPI 658 3 BPI 1,709 4 LBP 383 4 LBP 434 4 LBP 1,485 5 DBP 241 5 DBP 291 5 PNB 818 6 PNB 240 6 PNB 277 6 SECB 774 7 RCBC 239 7 RCBC 270 7 CHIB 654 8 Citi 211 8 UBP 208 8 UBP 549 9 UBP 187 9 CHIB 207 9 RCBC 537 10 CHIB 175 10 Citi 188 10 DBP 536

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SLIDE 18

Highlights: 1997 - 2017

10 capital raising activities totaling more than P209 billion* 24 note and bond issues with an aggregate amount of almost P202 billion 15 companies acquired by or merged with BDO

Note: * Including IFC loan conversion into equity

18

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SLIDE 19

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Where are we now?

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SLIDE 20 Source: Company data, consolidated statements of condition (SOC). Ranking as at 30 June 2017 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 1,592 1,113 1,074 503 436 401 336 324 260 205 MBT BPI LBP PNB CHIB SECB RCBC UBP EW 1,021 595 436 175 120 111 91 88 81 51 BPI MBT LBP SCB CHIB RCBC PNB UCPB SECB

1,980 1,462 1,434 1,319 625 554 435 383 380 345

MBT BPI LBP PNB CHIB UBP RCBC SECB DBP

Industry Ranking

Total Assets

(in PHP billions)

Gros

  • ss Custome
  • mer

r Loans ns Customer

  • mer Deposits
  • sits

Assets Unde der r Management

  • No. 1 among Philippine banks
(in PHP billions) (in PHP billions) (in PHP billions) BDO Market Share – 18% BDO Market Share – 36% BDO Market Share – 22% BDO Market Share – 18% 2,472 1,972 1,709 1,485 818 774 654 549 537 536 MBT BPI LBP PNB SECB CHIB UBP RCBC DBP

20

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SLIDE 21

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 #2 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 receivables 2 According to The Asset, & Asian Banking and Finance 3 According to The Asian Banker, Asian Banking and Finance, Alpha South East Asia 4 In terms of corporate issuances 5 Among insurance brokers in terms of premiums produced and commissions earned

21

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SLIDE 22

22

Market Reach

  • Wide and extensive coverage in key areas

27 International Offices

Europe - 12

11 Remittance Offices 1 Representative Office

Middle East - 1

Representative Office

SEA, China, HK, Taiwan, Korea & Japan - 11

1 Full-service Branch 6 Remittance Offices 4 Representative Offices

North America - 3

Remittance Offices

Philippines - 1,159 Branches

BDO ONB Total Luzon 318 6 324 Metro Manila 521 1 522 Visayas 115 16 131 Mindanao 80 102 182 Total Branches 1,034 125 1,159 As of 2 Oct 2017
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SLIDE 23

Total Shareholder Return* vs PSE Index

PSEi (Php) 23

Note * On an annualized basis , based on the closing price of P130.70 as of Sept. 29, 2017; adjusted for corporate actions

From To BDO PSEi

May 2002 (BDO IPO) Sep-17 16.3% 12.5% Dec 2006 (EPCI merger Sep-17 13.6% 8.3% announcement)

based on the closing price of P130.70 as of Sept. 29, 2017

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SLIDE 24 24

―Genius is 1% inspiration, 99% perspiration‖

  • Thomas Alva Edison

24

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SLIDE 25

1967

25

Our number 1 supporter, primary financier and most vocal cheerleader

The Sy Family

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SLIDE 26

1967

26

Our guiding light and moral compass

BDO Board of Directors

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SLIDE 27 Corporate Support

Our Team

Anthony Chua Head — Global Operations  With BDO since 2014  Over 30 years of banking experience Evelyn C. Salagubang Head — Human Resources  With BDO since 2007  Over 20 years experience in HR Lucy Co Dy Head — Comptrollership  With BDO since 1985  Over 30 years of banking experience Ricardo V. Martin Head — IT Group  With BDO since 2001  Over 30 years of banking experience Edwin Romualdo G. Reyes Head — Transaction Banking  With BDO since 2015  29-year banking experience Evelyn L. Villanueva Head — Risk Management  With BDO since 2002  Over 30 years of banking experience Luis S. Reyes Jr. Head — IR & Corplan  With BDO since 2003  Over 30 years of banking experience
  • Atty. Federico P. Tancongco
Head — Compliance  With BDO since 2005  Over 24 years banking experience Alvin C. Go Head — Legal  With BDO since 2013  In the practice of law for 30 years Maria Theresa L. Tan General Manager — BDO Insurance  With BDO since 2009  22-year banking and insurance experience Albert Santiago Yeo Head — Private Banking  With BDO since 2017  32 years banking experience Eduardo V. Francisco Head — Investment Banking  With BDO since 1999  27-year banking experience Ador A. Abrogena Head — Trust and Investments  With BDO since 1990  Over 30 years of banking experience Walter C. Wassmer Head — Business Lending  With BDO since 1997  Over 30 years of banking experience Rolando C. Tanchanco Head — Consumer Lending  With BDO since 2004  25-year banking experience Jaime C. Yu Head — Branch Banking  With BDO since 1997  Over 30 years of banking experience Pedro M. Florescio III Head — Treasury  With BDO since 2001  Over 30 years of banking experience Products, Services and Subsidiaries Intermediation 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 30-years of banking experience Estrellita V. Ong Head — Internal Audit  With BDO since 2011  Over 20 years experience in audit Renato Vergel de Dios CEO & Director – Generali Life  With Generali since 2009  40 years of experience in insurance Ramon T. Militar OIC, One Network Bank  With BDO since 2002  30 years of banking experience Maria Cecilia G. Fonacier Head — Marketing Communications  With BDO since 2017  Over 20 years of banking experience
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SLIDE 28

Where do we go from here?

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SLIDE 29

29

Philippine banking opportunities: what do we see?

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SLIDE 30

1967

30

33

adults with savings in a bank

Source: BSP 1Q17 Financial Inclusion DashBoard

%

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SLIDE 31

1967

31

36

Philippine cities and municipalities without a formal banking presence

Source: BSP 1Q17 Financial Inclusion DashBoard

%

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SLIDE 32

1967

32

42

contribution of informal sector to Philippine GDP

Source: World Bank

%

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SLIDE 33

1967

33

1.8

insurance penetration

Source: BSP 1Q17 Financial Inclusion DashBoard

%

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SLIDE 34

1967

34

3,000

approximate Philippine per capita income

$

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SLIDE 35
  • Philippines now in a higher growth trajectory

Real GDP Levels 2011-2016 CAGR of 6.6% 1966-2011 CAGR of 4.0%

Sources: National Statistics Authority Bangko Sentral ng Pilipinas

GDP Growth

(USD bn)

35

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SLIDE 36
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SLIDE 37

Competition

13%

37

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SLIDE 38 38

Fintechs

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SLIDE 39

Cyber Threat

13%

39

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SLIDE 40

Assets of ASEAN Banks, 2016 Top 3 Phil banks = between Maybank and CIMB

Globalization/Regionalization

ASEA N Bank Country Assets US$ Bn 1 DBS Bank Singapore 332 2 OCBC Singapore 283 3 UOB Singapore 235 4 Maybank Malaysia 164 Top 3 Phil Banks combined 119 5 CIMB Group Malaysia 108 6 Public Bank Malaysia 85 7 Bangkok Bank Thailand 82 8 Slam Commercial Bank Thailand 81 9 Kasikorn Bank Thailand 79 10 Krung Thai Bank Thailand 75 11 Government Savings Bank Thailand 70 12 RHB Bank Malaysia 53 13 Bank of Ayudhya Thailand 53 14 Hong Leong Bank Malaysia 47 15 BDO Unibank Philippines 47 16 Bank for Inv and Dev of Vietnam Vietnam 45 17 Agribank Vietnam 45 18 Vietin Bank Vietnam 43 19 Metrobank Philippines 38 20 Vietcombank Vietnam 36 21 Bank of the Philippine Islands Philippines 35 22 AmBank Group Malaysia 34 23 Land Bank of the Philippines Philippines 28 24 Thanachart Bank Thailand 27 25 TMB Bank Thailand 23

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SLIDE 41

41

Global standards – are they helpful?

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SLIDE 42

42

Markets :

  • verbanked

vs underbanked

Developed World Philippines

Shareholders : dispersed vs family control Focus : services vs intermediation capital markets vs on balance sheet transactional vs relationship Objectives: interim profits vs growth (market expectations) (franchise building)

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SLIDE 43

43

Do global standards apply? Principles Prescription

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SLIDE 44

Role of Banking

“fat cat bankers”

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SLIDE 45

bankable population

45

Facilitating Financial Inclusion

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SLIDE 46

P 10K/month capacity to pay = P 1M affordable housing P 10K/month remittance = P 10K/month consumption

Creating the Multiplier Effect

46

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SLIDE 47

Enabling Efficient Payments and Settlement

47

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SLIDE 48 48
  • Depositors
  • Borrowers

Intermediation Funding Lending

Easing Intermediation

  • Banks
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SLIDE 49

Helping in Public Policy Implementation

Anti-Money Laundering and Anti-Terrorism Financing Laws

49

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SLIDE 50

Collaboration Competition

Banking Frenemies

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SLIDE 51

13%

51

危机

crisis opportunity

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SLIDE 52 52

Every ry mornin ning g in the plains ins of the Serenge engeti, ti, a Gazelle elle wakes s up knowing wing that t to survive vive the day he must t run faster ter than the fastest test Lion; n; and and every ry morning ing a Lion n wakes es up knowing ing that t to survive vive the day he must t run faste ter r than n the slowest west Gazelle. elle.

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SLIDE 53

MORAL: AL: It does not matter ter whether ther you are a Lion n or a Gazelle elle, , when n the sun comes es up you better ter be ready dy to run.

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SLIDE 54

Thank you.