dbp initiation presentation final v5
TRANSCRIPT
PGS Initiation Stage Revalida PresentationPGS Initiation Stage Revalida Presentation30 March 2012, Public Governance Forum30 March 2012, Public Governance Forum
governancegovernance
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governancegovernanceandand
• IntegrityIntegrity• Love for the FilipinoLove for the Filipino• ExcellenceExcellence• TeamworkTeamwork• Service to othersService to others
CORE VALUESCORE VALUES
• Participative Participative Management Management
• Good Governance Good Governance • Transparency Transparency • People Development People Development
MANAGEMENT PHILOSOPHYMANAGEMENT PHILOSOPHY
Infrastructure and logisticsInfrastructure and logisticsInfrastructure and logisticsInfrastructure and logistics
MSMEsMSMEsMSMEsMSMEs
EnvironmentEnvironmentEnvironmentEnvironment
Social SectorSocial SectorSocial SectorSocial Sector
Infrastructure and logisticsInfrastructure and logisticsInfrastructure and logisticsInfrastructure and logistics
MSMEsMSMEsMSMEsMSMEs
EnvironmentEnvironmentEnvironmentEnvironment
Social SectorSocial SectorSocial SectorSocial Sector
MISSION STATEMENTMISSION STATEMENTWe will work for raising the level of competitiveness of the We will work for raising the level of competitiveness of the economy for sustainable growth. We will support economy for sustainable growth. We will support infrastructure development, responsible entrepreneurship, infrastructure development, responsible entrepreneurship, efficient social services and protection of the environment. efficient social services and protection of the environment. We will promote and maintain the highest standards of We will promote and maintain the highest standards of service and corporate governanceservice and corporate governance
ENABLING PARTNERSHIPS FOR DEVELOPMENTENABLING PARTNERSHIPS FOR DEVELOPMENT6565INNOVATIVE GROWTH & GOOD INNOVATIVE GROWTH & GOOD
GOVERNANCEGOVERNANCE
1935
National Loan National Loan and Investment and Investment
BoardBoard
Agricultural and Agricultural and Industrial BankIndustrial Bank
1947Rehabilitation Finance CorpRehabilitation Finance Corp
Gov’t trust Gov’t trust fundfund
Credit Credit facilitiesfacilities
Branch Branch BankingBanking
PRE-DBPPRE-DBP
1939
STARTSTART
Countryside Countryside FinanceFinance
1958
Reorganized into DBPReorganized into DBP
Expansion of network of Expansion of network of branchesbranches
Lending: housing, Lending: housing, SMEs and agriSMEs and agri
EXPANDEXPAND RESTARTRESTART
1986Clearing of Clearing of booksbooks
Transfer of non-Transfer of non-performing assetsperforming assets
1995Universal Universal
banking banking statusstatus
2009New logo for New logo for innovationinnovation
Mortgage loan, Mortgage loan, secured and secured and
unsecured loansunsecured loans
Investment banking, Investment banking, sales, merchant, sales, merchant,
trading and researchtrading and research
2011
2012
Pioneer in Pioneer in corporate corporate governancegovernance
P4.02B highest P4.02B highest ever core net ever core net incomeincome
SERVICES OFFERED
By 2016, a globally-recognized development financial institution, By 2016, a globally-recognized development financial institution, serving as a catalyst for a progressive and serving as a catalyst for a progressive and
poverty-free Philippinespoverty-free Philippines
VISION STATEMENTVISION STATEMENT
High cost producer with High cost producer with limited branch networklimited branch network
Development lending Development lending activities with low returnsactivities with low returns
Impending ERIPImpending ERIP
Losing of duopoly over Losing of duopoly over government depositsgovernment deposits
Branch expansionBranch expansion
Infrastructure, logistics and Infrastructure, logistics and PPP thrust of the Aquino PPP thrust of the Aquino AdministrationAdministration
Competent, well-trained and Competent, well-trained and motivated officers and staffmotivated officers and staff
Generation of private sector Generation of private sector deposits + OFW remittancesdeposits + OFW remittances
DEVELOPMENT BANK OF THE PHILIPPINES STRATEGY MAP 2016DEVELOPMENT BANK OF THE PHILIPPINES STRATEGY MAP 2016A globally-recognized development financial institution, serving as a catalyst for a progressive and
poverty-free Philippines
MISSIONMISSION-We will work for raising the level of competitiveness of the economy for sustainable growth-We will support infrastructure development, responsible entrepreneurship, efficient social services and protection of the environment-We will promote and maintain the highest standards of service and corporate governance.
MGT PHILOSOPHYMGT PHILOSOPHY-Participative Management-Good Governance-Transparency-People Development
-Integrity-Love for the Filipino-Excellence-Teamwork-Service to others
CORE VALUESCORE VALUES
OPERATIONAL OPERATIONAL EXCELLENCEEXCELLENCE
DEVELOPMENTAL DEVELOPMENTAL THRUSTTHRUST
DEVELOPMENT BANK OF THE PHILIPPINES STRATEGY MAP 2016DEVELOPMENT BANK OF THE PHILIPPINES STRATEGY MAP 2016A globally-recognized development financial institution, serving as a catalyst for a progressive and
poverty-free Philippines
MISSIONMISSION-We will work for raising the level of competitiveness of the economy for sustainable growth-We will support infrastructure development, responsible entrepreneurship, efficient social services and protection of the environment-We will promote and maintain the highest standards of service and corporate governance.
MGT PHILOSOPHYMGT PHILOSOPHY-Participative Management-Good Governance-Transparency-People Development
-Integrity-Love for the Filipino-Excellence-Teamwork-Service to others
CORE VALUESCORE VALUESHow can we acquire, develop and How can we acquire, develop and
harness the skills and talent of our people harness the skills and talent of our people to attain our vision? Do we have sufficient to attain our vision? Do we have sufficient organizational development initiatives to organizational development initiatives to
pursue our mandate and grow? Are we pursue our mandate and grow? Are we providing the direction to our people to providing the direction to our people to
think developmental?think developmental?
What corporate governance practices What corporate governance practices should we implement to achieve should we implement to achieve
breakthrough results, comply with internal breakthrough results, comply with internal and external regulatory requirements and and external regulatory requirements and
strengthen bank operations?strengthen bank operations?
How do we intensify funding for priority How do we intensify funding for priority areas? What are we doing to be globally areas? What are we doing to be globally
recognized?recognized?
How do we improve our fund sourcing and How do we improve our fund sourcing and management?management?
Who are our stakeholders and how can Who are our stakeholders and how can they benefit from our services?they benefit from our services?
SOCIAL IMPACTSOCIAL IMPACT
FINANCEFINANCE
CONSTITUENCYCONSTITUENCY INTERNAL PROCESSINTERNAL PROCESS
ORGANIZATIONORGANIZATION
DEVELOPMENT BANK OF THE PHILIPPINES STRATEGY MAP 2016DEVELOPMENT BANK OF THE PHILIPPINES STRATEGY MAP 2016A globally-recognized development financial institution, serving as a catalyst for a progressive and
poverty-free Philippines
OrganizatioOrganizationn
Internal Internal ProcessProcess
ConstituencyConstituency
FinanceFinance
Social ImpactSocial Impact
Implement a structure for a learning & peak-performing organization.
Institutionalize a succession plan
and talent management
Recruit and retain the best
and the brightest
Update and align PMS toward a balanced and
efficient operations
Improve training programs for
head office and branch.
Strategic ObjectivesStrategic Objectives MeasuresMeasures InitiativesInitiatives
E. Implement a structure for a learning and peak-performing organization
5. % of home-grown to external hires
• Provide training as determined by the TNA and provide technology support
• Hiring program to meet targets and competency requirements
D. Institutionalize a succession plan and talent management
4. % of critical positions with a succession plan
• Maintain adequate pool of qualified candidates• Establish a succession planning system for all key
positions below the President up to AVP level
C. Update and align PMS toward a balanced and efficient operations
3. % of performance management system aligned to the strategy
• Update the PMS and align to vision and mission of the Bank
B. Improve training programs for head office and branch
2. % of T&D cost to total people cost
• Conduct priority training as determined by TNA• Review training needs and updated T&D programs to
meet the 5%
A. Recruit and retain the best and the brightest
1. Ranking in reputation as an employer/ institution
• Engage third party for competitiveness in compensation• Conduct image and reputation survey, CSR/Environment
policies• Enhance HR policies
GOVERNANCE GOVERNANCE SCORECARDSCORECARD
PGS INITIATION STAGE REVALIDAPGS INITIATION STAGE REVALIDA
DEVELOPMENT BANK OF THE PHILIPPINES STRATEGY MAP 2016DEVELOPMENT BANK OF THE PHILIPPINES STRATEGY MAP 2016A globally-recognized development financial institution, serving as a catalyst for a progressive and
poverty-free Philippines
OrganizationOrganization
Internal Internal ProcessProcess
ConstituencyConstituency
FinanceFinance
Social ImpactSocial Impact
Adopt responsive bank management & governance practices
Maintain good standing with
regulatory bodies
Streamline credit and other operating processes
Establish and utilize ICT as a
management tool and enabler
Carry out mandate of regulators in
audit, risk mgt & compliance
Implement a structure for a learning & peak-performing org
Institutionalize a succession plan and talent management
Recruit and retain the best and the brightest
Update and align PMS toward a balanced and
efficient operations
Improve training programs for head office
and branch
Strategic ObjectivesStrategic Objectives MeasuresMeasures InitiativesInitiatives
J. Adopt responsive bank management and governance practices
13. Time needed to consolidate and release financial and operating reports
• Maintain, if not improve, timeliness, accuracy, reliability and relevance of financial and operating reports
I. Maintain good standing with regulatory bodies
12. Status with regulatory bodies
• Address all issues raised and prevent recurrent, establish policies where need (esp. policy on whistle blowing)
H. Carry out mandate of regulations in risk management and compliance
11. CAMELS Rating • Banking best practice on areas for improvement
G. Streamline credit and other operating process
10. % backlog in loan applications
• Review standards and monitoring systems
9. % of approved loans released
• Identify delays in loan releases and correct• Review policies needing updating
8. NPL to total loans• Make NPL Performance relate to PMS and strengthen
monitoring system
F. Establish and utilize ICT as a management tool and enabler
7. % completion of major ISSP projects
• Implement remaining major projects based on the 2011 ISSP
6. Number of new offsite ATMs
• Identify appropriate locations• Sustain responsiveness and usefulness of site
GOVERNANCE GOVERNANCE SCORECARDSCORECARD
PGS INITIATION STAGE REVALIDAPGS INITIATION STAGE REVALIDA
DEVELOPMENT BANK OF THE PHILIPPINES STRATEGY MAP 2016DEVELOPMENT BANK OF THE PHILIPPINES STRATEGY MAP 2016A globally-recognized development financial institution, serving as a catalyst for a progressive and
poverty-free Philippines
OrganizationOrganization
Internal Internal ProcessProcess
ConstituencyConstituency
FinanceFinance
Social ImpactSocial Impact
Build recognition as a preferred partner of
OFWs/investors
Support government priority programs
Adopt responsive bank management & governance practices
Maintain good standing with regulatory bodies
Streamline credit and other operating processes
Establish and utilize ICT as a management tool and
enabler
Carry out mandate of regulators in audit, risk mgt
& compliance
Implement a structure for a learning & peak-performing organization.
Institutionalize a succession plan and talent management
Recruit and retain the best and the brightest
Update and align PMS toward a balanced and
efficient operations
Improve training programs for head office and branch
Strategic ObjectivesStrategic Objectives MeasuresMeasures InitiativesInitiatives
L. Support government priority programs
18. % of loan portfolio supporting government priority programs
• Cooperative Anti-Lending Program Facility• Agribusiness Development Programs• Tree Plantation Financing Programs• Sustainable Shelter Dev’t Financing Program• Green Finance Program• Financing Program for the Sanitation Sector• Financing Program for the Water Sector• Connecting Rural Urban Intermodal System Efficiency
(CRUISE) Program• Financing Program for Basic Education• Deliberate shift to development loans
17. % composition of loan portfolio according to government priority programs
K. Build recognition as a preferred partner of OFWs/investors
16. % increase in volume of new remittances from 2011 (US% 127.5M) • DBP Overseas Filipino Workers Reintegration Program
• Generate remittance volume from Overseas Filipinos and governmental/non-governmental organizations serving OFWs
• Establish DBP presence in key countries hosting overseas Filipinos
15. Total number of new countries with DBP’s presence
14. Number of new MOA signed with international tie-ups per year
GOVERNANCE GOVERNANCE SCORECARDSCORECARD
PGS INITIATION STAGE REVALIDAPGS INITIATION STAGE REVALIDA
DEVELOPMENT BANK OF THE PHILIPPINES STRATEGY MAP 2016DEVELOPMENT BANK OF THE PHILIPPINES STRATEGY MAP 2016A globally-recognized development financial institution, serving as a catalyst for a progressive and
poverty-free Philippines
OrganizationOrganization
Internal Internal ProcessProcess
ConstituencyConstituency
FinanceFinance
Social ImpactSocial Impact
Adopt responsive bank management & governance practices
Maintain good standing with regulatory bodies
Streamline credit and other operating processes
Establish and utilize ICT as a management tool and
enabler
Carry out mandate of regulators in audit, risk mgt
& compliance
Implement a structure for a learning & peak-performing organization.
Institutionalize a succession plan and talent management
Recruit and retain the best and the brightest
Update and align PMS toward a balanced and
efficient operations
Improve training programs for head office and branch
Build recognition as a preferred partner of OFWs/investors
Support government priority programs
Improved balance sheet & credit rating
Intensified deposit generation capabilities
Improved ODA funding and sourcing
Quality and balanced investment portfolio
Strategic Strategic ObjectivesObjectives MeasuresMeasures InitiativesInitiatives
P. Improved balance sheet and credit rating
25. Industry ranking in:-Assets:-Loans-Deposits-CAR
• New branches• Aggressive but prudent lending based on priorities• Raise new capital
O. Quality and balanced investment portfolio
24. % growth rate in loan portfolio (loans to borrowers) from 2011 (P121.51B)
• Update the PMS and align to vision and mission of the Bank
N. Improved ODA funding and sourcing
23. Rates comparable to private commercial banks
• Reduce cost of funds• Renegotiate sources of funds• Increase number of branches
M. Intensified deposit generation capabilities
22. Total number of new branches
• Identify growth areas that can absorb new branches and recruit quality personnel
• Increase branches, empower branches with IT support, more new products, deposit campaigns, sales oriented organization
21. % growth rate of low cost deposit portfolio
20. Size of deposit base
19. Composition of deposit base Gov’t/Private/ LGUs
• More branches, mine existing private accounts, review compensating business policy (market base)
GOVERNANCE GOVERNANCE SCORECARDSCORECARD
PGS INITIATION STAGE REVALIDAPGS INITIATION STAGE REVALIDA
DEVELOPMENT BANK OF THE PHILIPPINES STRATEGY MAP 2016DEVELOPMENT BANK OF THE PHILIPPINES STRATEGY MAP 2016A globally-recognized development financial institution, serving as a catalyst for a progressive and
poverty-free Philippines
OrganizationOrganization
Internal Internal ProcessProcess
ConstituencyConstituency
FinanceFinance
Social Social ImpactImpact
Adopt responsive bank management & governance practices
Maintain good standing with regulatory bodies
Streamline credit and other operating processes
Establish and utilize ICT as a management tool and
enabler
Carry out mandate of regulators in audit, risk mgt
& compliance
Implement a structure for a learning & peak-performing organization.
Institutionalize a succession plan and talent management
Recruit and retain the best and the brightest
Update and align PMS toward a balanced and
efficient operations
Improve training programs for head office and branch
Build recognition as a preferred partner of OFWs/investors
Support government priority programs
Expanded access to social services for Filipinos (health, education, livelihood, housing, employment)
Intensified deposit generation capabilities
Improved ODA funding and sourcing
Quality and balanced investment portfolio
Improved balance sheet & credit rating
Strategic ObjectivesStrategic Objectives MeasuresMeasures InitiativesInitiatives
Q. Expanded access to social services for Filipinos (health, education, livelihood, employment, etc.)
27. Number of new development programs
• Cooperative Anti-Lending Program Facility• Agribusiness Development Programs• Tree Plantation Financing Programs• Sustainable Shelter Dev’t Financing Program• Green Finance Program• Financing Program for the Sanitation Sector• Financing Program for the Water Sector (498 waterless
LGUs and 780 water districts)• Financing Program for Basic Education• Continuous assessment of development needs• Offer competitive rates• Raise new capital• Renegotiate sources of funds• Increase branches, empower branches with IT support,
more new products, deposit campaigns, sales oriented organization
• Update the PMS and align to vision and mission of the Bank
26. Cut between developmental/ commercial;retail/ wholesale
GOVERNANCE GOVERNANCE SCORECARDSCORECARD
PGS INITIATION STAGE REVALIDAPGS INITIATION STAGE REVALIDA
DEVELOPMENT BANK OF THE PHILIPPINES STRATEGY MAP 2016DEVELOPMENT BANK OF THE PHILIPPINES STRATEGY MAP 2016A globally-recognized development financial institution, serving as a catalyst for a progressive and
poverty-free Philippines
MISSIONMISSION-We will work for raising the level of competitiveness of the economy for sustainable growth-We will support infrastructure development, responsible entrepreneurship, efficient social services and protection of the environment-We will promote and maintain the highest standards of service and corporate governance.
MGT PHILOSOPHYMGT PHILOSOPHY-Participative Management-Good Governance-Transparency-People Development
-Integrity-Love for the Filipino-Excellence-Teamwork-Service to others
CORE VALUESCORE VALUES
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DEVELOPMENTAL THRUSTDEVELOPMENTAL THRUSTOPERATIONAL OPERATIONAL EXCELLENCEEXCELLENCE
Expanded access to social services for Filipinos (health, education, livelihood, housing, employment)
Improved balance sheet & credit rating
Intensified deposit generation capabilities
Improved ODA funding and sourcing
Quality and balanced investment portfolio
Build recognition as a preferred partner of OFWs/investors
Support government priority programs
Adopt responsive bank management & governance practices
Maintain good standing with regulatory bodies
Streamline credit and other operating
processes
Establish and utilize ICT as a management tool
and enabler
Carry out mandate of regulators in audit, risk
mgt & compliance
Implement a structure for a learning & peak-performing org
Institutionalize a succession plan and talent management
Recruit and retain the best and the brightest
Update and align PMS toward a balanced and
efficient operations
Improve training programs for head office
and branch
Alignment in the Aquino administration’s governance thrust of infra and PPPsAlignment in the Aquino administration’s governance thrust of infra and PPPs
early gainsearly gains
P29.98B in Infra and LogP29.98B in Infra and LogP29.98B in Infra and LogP29.98B in Infra and Log P7.08B in EnvironmentP7.08B in EnvironmentP7.08B in EnvironmentP7.08B in Environment P11.26B in Social ServicesP11.26B in Social ServicesP11.26B in Social ServicesP11.26B in Social Services
P14.44B in MSMEP14.44B in MSMEP14.44B in MSMEP14.44B in MSME P49.85B in Other Priority IndustriesP49.85B in Other Priority IndustriesP49.85B in Other Priority IndustriesP49.85B in Other Priority Industries P7.93B in Commercial LoansP7.93B in Commercial LoansP7.93B in Commercial LoansP7.93B in Commercial Loans
balanced with impactbalanced with impactbalanced with impactbalanced with impactNEW DBPNEW DBPNEW DBPNEW DBP
not just financial measuresnot just financial measuresnot just financial measuresnot just financial measures
early gainsearly gains
TRADITIONALTRADITIONALTRADITIONALTRADITIONAL
First time to include and identify social impact on DBP scorecardFirst time to include and identify social impact on DBP scorecard