bdo and philippine banking - rcmanila.org · 7 citi 119 7 rcbc 156 7 dbp 236 8 ba 109 8 dbp 151 8...

5 October 2017

BDO and

Philippine Banking

2

Looking Back

1967

3

Banco De Oro early 1990s Aurora Boulevard, Cubao, Quezon City

1967

4

―The lady who started it all‖

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

1967

6

Banco De Oro circa 1997

Ortigas Center

Getting Started

7

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

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

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


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

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

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

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


1967

KB license

1994

P77 BN


Bank Philippines

2001

P36 BN

U/KB license

1996


P121 BN

2002


P234 BN

2005


1976

Assets

P13 BN

P617 BN

2007

Merged with Equitable PCI Bank.

Acquired Amex Savings Bank Philippines

Est. as

Acme

Savings

Bank

2003


P149 BN

Full-Service Bank Strategy


1967

KB license

1994

P77 BN


Bank Philippines

2001

P36 BN

U/KB license

1996


P121 BN

2002


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


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


P149 BN

P2.3 TN

P802 BN

Full-Service Bank Strategy


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


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


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

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

19

Where are we now?

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)

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 – 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

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

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

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

24

―Genius is 1% inspiration, 99% perspiration‖

- Thomas Alva Edison

24

1967

25

Our number 1 supporter, primary financier and most vocal cheerleader

The Sy Family

1967

26

Our guiding light and moral compass

BDO Board of Directors

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


Ricardo V. Martin

Head — IT Group

With BDO since 2001


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


Luis S. Reyes Jr.

Head — IR & Corplan

With BDO since 2003


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


Ador A. Abrogena

Head — Trust and Investments

With BDO since 1990


Walter C. Wassmer

Head — Business Lending

With BDO since 1997


Rolando C. Tanchanco

Head — Consumer Lending

With BDO since 2004


Jaime C. Yu

Head — Branch Banking

With BDO since 1997


Pedro M. Florescio III

Head — Treasury

With BDO since 2001


Products, Services and Subsidiaries Intermediation

Nestor V. Tan

President and CEO With BDO since 1997


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


Where do we go from here?

29

Philippine banking opportunities: what do we see?

1967

30

33 adults with savings in a

bank

Source: BSP 1Q17 Financial Inclusion DashBoard

%

1967

31

36 Philippine cities and municipalities

without a formal banking presence


%

1967

32

42 contribution of informal sector to

Philippine GDP

Source: World Bank

%

1967

33

1.8

insurance penetration


%

1967

34

3,000

approximate Philippine per capita income

$

• 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

Competition

13% 37

38

Fintechs

Cyber Threat

13% 39

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

41

Global standards – are they helpful?

42

Markets : overbanked 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)

43

Do global standards apply?

Principles

Prescription

Role of Banking

“fat cat bankers”

Expand our market downward

bankable

population

45

Facilitating Financial Inclusion

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

P 10K/month remittance = P 10K/month consumption

Creating the Multiplier Effect

46

Enabling Efficient Payments and Settlement

47

48

• Depositors • Borrowers

Intermediation Funding Lending

Easing Intermediation

• Banks

Helping in Public Policy Implementation

Anti-Money Laundering and Anti-Terrorism Financing Laws

49

Collaboration Competition

Banking Frenemies

13% 51

危机 crisis opportunity

52

Every morning in the plains of the

Serengeti,

a Gazelle wakes up knowing that to

survive the day he must run faster than

the fastest Lion; and every morning a Lion wakes up knowing

that

to survive the day he must run faster than

the slowest Gazelle.

MORAL: It does not matter whether you are a Lion or a

Gazelle,

when the sun comes up you better be ready to run.

Thank you.

bdo and philippine banking - rcmanila.org · 7 citi 119 7 rcbc 156 7 dbp 236 8 ba 109 8 dbp 151 8...

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