BDO Investor Presentation 2015Q1

1
July 2015
Investor Presentation
Presentation Outline
I.
Overview
II.
Financial Highlights
III.
Ownership, Board and Management
IV.
Corporate Governance and

Corporate Social Responsibility
V.
Awards and Citations
About BDO
The Philippines largest bank with total

assets of P1.9 Tn (USD41 Bn).
A full-service universal bank with one of

the widest distribution networks
consisting of 895 operating branches
and over 2,743 ATMs nationwide.
Part of the SM Group, one of the

countrys largest conglomerates.
Milestones
Expansion through organic growth and M&As

Acquired Citi Savings
Bank, DB Trust and
Real Bank
Acquired GE
Money Bank
P1.9 TN
Acquired UOB Philippines

branch banking business
Acquired 1st e-Banks

banking business
Acquired by
SM Group
Est. as
Acme
Savings
Bank
Merged with Dao Heng

Bank Philippines
P149 BN
P862 BN
P234 BN
P36 BN
1967 1976
P617 BN
P1.0 TN
KB license
Assets
P13 BN
P1.2 TN
P121 BN
P77 BN
U/KB license
Acquired
Banco
Santander
Philippines
P1.7 TN
Acquired
One
Network
Bank
Acquired Rural
Bank of San
Juans banking
business
Merged with Equitable

PCI Bank.
Acquired Amex Savings
Bank Philippines
1994 1996 2001 2002 2003 2005 2007 2009 2010 2012 2013 2014 2015
Commercial Bank Expansion
Full Service Bank
Complete range of financial products and services
Branch
Banking
Deposit and
Transaction
Banking
Cash management
related products
Over-the-counter
transactions
Cross-selling
distribution platform
Corporate &
Institutional
Banking
Corporate and
middle market
lending
Trade finance
Specialized lending
Financial Institutions
Cross-border
financing
services
Insurance
Brokerage
Bancassurance
Electronic banking
Merchant acquiring
Remittances
Underwriting and
distribution of
Fixed income and
equity securities
Financial advisory
Project finance
Loan syndication
management
Unit investment
Living trusts
Retirement funds
Special trusts /
Prepaid cards
Investment
Banking
Investment
trust funds
ATMs
Consumer
Lending
Trust Banking
Auto
Mortgage
Credit cards
Personal loans
Merchant payment
processing
custodianship
Private
Banking
Treasury
Services
Wealth advisory
Fixed income
dealership
Customized portfolio
management
Foreign exchange
transactions
Portfolio
management
Liquidity
management
Leasing &
Finance
Direct lease, sale
and leaseback
arrangements
Installment paper
purchases
Receivable
discounting
and factoring
Market Reach
Wide and extensive coverage in key areas
Europe - 15
14 Remittance Offices
1 Representative Office
SEA, HK, Taiwan & Korea - 9

1 Full-service Branch
5 Remittance Offices
3 Representative Offices
North
America - 3
Middle East - 2
Remittance Offices
Representative Offices
29
Philippines 892 Branches

as of 30 June 2015
International Offices
Domestic Distribution Network

892 operating branches as of 30 June 2015
449 Metro Manila
278
2,743 ATMs Nationwide
Mobile/Internet
Banking
97
68
Longer Banking Hours,

Weekend Banking for over
130 Mall Based Branches
Business Franchise
Market-leading positions in almost all business lines
#1
Loans
#1
Remittance
#1
Deposits
#1
Trust and
Asset Mgt
Leading Trade
Services Provider1
#1
Credit Cards3
#1
Private
Banking
Major Player in
Cash Management2
#2
Leasing &
Finance
#1
Investment
Banking4
#1 Local
Insurance
Brokerage5
Notes:
1 According to The Asian Banker, Global Finance, The Asset, & Trade Finance Magazine
2 According to The Asset
3 In terms of cardholder base & merchant acquiring gross billings
4 In terms of corporate issuances
5 Among insurance brokers in terms of premiums produced
Industry Ranking
No. 1 among Philippine banks
Total Assets
Gross Customer Loans

(in PHP billions)
(in PHP billions)
BDO Market Share 22%
Customer Deposits
Assets Under Management

(in PHP billions)
(in PHP billions)
Source: Company data, consolidated statements of condition (SOC). Ranking as at 31 March 2015
Note: Financials prepared by banks under BSPs SOC requirements differ slightly from reported financials under SEC
guidelines due to certain differences in accounting rules requested by the two authorities
Organizational Structure
With equity investments in allied and non-allied enterprises
BDO UNIBANK, INC.
PHILIPPINE PARENT BANK
11
The Banker Top 1000 World Banks Tier 1 Capital

Tier 1 Capital Ranking of Banks
(as of 31 December 2013)
World Rank
Local
Rank
Country
Name of Bank
Tier 1 Capital
($ Mn)
Current
Previous
264
262
CHE
Basier Kantonalbank
3,433
265
237
IND
IDBI
3,429
266
303
11
ESP
Ibercaja
3,421
267
284
38
USA
Raymond James
3,419
268
251
PHL
BDO Unibank, Inc.
3,413
269
230
IDN
Bank Negara Indonesia
3,406
270
273
AUT
Bawag PSK
3,371
271
267
17
DEU
Aareal Bank
3,361
272
344
30
CHN
Bank of Hangzhou
3,360
273
271
MYS
Bank Rakyat
3,351
12
The Banker Top Philippine Banks Tier 1 Capital

Tier 1 Capital Ranking of Banks
(as of 31 December 2013)
World Rank
Local
Rank
Name of Bank
Tier 1
Capital
($ Mn)
Current
Previous
268
251
BDO Unibank, Inc.
3,413
314
333
Metropolitan Bank & Trust
2,758
382
386
Bank of the Philippine Islands
2,108
506
642
Philippine National Bank
1,394
590
655
Rizal Commercial Banking Corp.
1,099
680
663
Security Bank
880
681
702
China Banking Corporation
878
751
765
Union Bank of the Philippines
736
13
Credit Ratings
Moodys
18 Jun 2015
Fitch
24 Apr 2015
Capital
Intelligence
25 Aug 2014
Long Term
Baa2
BB+
BBB-
Short Term
Prime-2
A3
Stable
Positive
Stable
Foreign Currency Issuer/Debt Rating (IDR)
Outlook
Baseline Credit Assessment (BCA)
baa2
Adjusted BCA Rating
baa2
Viability Rating
bb+
Financial Strength Rating
BBB-
Outlook
Counterparty Risk (CR) Assessment
Source: Moodys, Fitch and Capital Intelligence
Positive
Baa1(cr)/
P-2 (cr)
Trading Fact Sheet

Stock Details
Type
Stock Ticker
ISIN
Exchange
Par Value
Outstanding No. of Shares
Foreign Owneship
Common Shares
BDO
PHY077751022
Philippine Stock Exchage
P10.00
3,580,875,328
Up to 40%
American Depositary Receipts (ADR) Program Details

Type
ADR Ticker
ISIN
Ratio
Depositary Bank
Contact Details
ADR Broker Helpline
Tel (New York)
Tel (London)
Email
ADR website
Sponsored Level 1 ADR

BDOUY
US05537Y3045
1 ADR = 10 Ordinary Shares
Deutsche Bank Trust Company Americas
Depositary Bank's Local Custodian
Deutsche Bank AG, Manila Branch
+ 1 212 250 9100

+ 44 207 547 6500
adr@db.com
www.adr.db.com
15
I.
Overview
II.
III.
IV.

V.
1Q15 Income Statement

(in PHP billion)
1Q15
1Q14
YoY %
Interest Income
16.8
15.1
11%
Interest Expense
3.5
3.0
17%
Net Interest Income
13.3
12.1
9%
Non-interest Income
8.8
7.1
24%
Fee Income
4.3
4.0
7%
Trading & FX
3.4
2.2
54%
Others
1.1
0.8
25%
Gross Op Income
22.0
19.2
15%
Operating Expense
13.3
11.9
12%
Pre-Provision Op Profit
8.7
7.3
19%
Provisions
1.2
1.3
-10%
Taxes
1.4
0.5
162%
6.1
5.5
12%
Net Income
17
2009 to 2014 Income Statement

(in PHP billion)
2009
2010
2011
2012
2013
2014
Interest Income
48.8
49.9
50.5
54.0
56.6
63.6
Interest Expense
18.3
15.8
16.9
17.9
13.4
12.4
Net Interest Income
30.6
34.2
33.6
36.1
43.2
51.2
Non-interest Income
15.5
17.8
20.9
24.4
31.8
29.5
Fee Income
9.6
10.4
12.3
13.4
15.5
18.0
Trading & FX
3.6
5.8
5.6
8.2
12.8
7.1
Others
2.3
1.6
3.0
2.8
3.6
4.4
Gross Op Income
46.0
52.0
54.5
60.5
75.0
80.7
Operating Expense
32.1
34.8
35.8
39.5
43.3
48.5
Pre-Prov Op Profit
13.9
17.2
18.7
21.0
31.8
32.2
Provisions
6.2
6.7
6.1
4.9
7.0
5.1
Taxes
1.7
1.6
1.7
1.6
2.1
4.2
6.0
8.8
10.8
14.5
22.6
22.8
Net Income
18
1Q15 Balance Sheet

(in PHP billion)
1Q15
1Q14
YoY %
Reserve Assets
472.7
467.7
1%
Investment Securities
234.5
186.6
26%
1,104.7
956.5
15%
Investment Properties
13.1
10.0
32%
Other Assets
29.4
24.6
20%
1,854.4
1,645.4
13%
Deposits
1,492.1
1,334.4
12%
CASA
977.2
832.0
17%
102.2
81.8
25%
79.1
63.0
26%
1,673.4
1,479.2
13%
181.0
166.2
9%
1,854.4
1,645.4
13%
Resources
Total Resources
Liabilities
Bills Payable/Sub-Debt
Other Liabilities
Total Liabilities
Total Capital
Total Liabilities & Capital
19
2009 to 2014 Balance Sheet

(in PHP billion)
2009
2010
2011
2012
2013
2014
Reserve Assets
176.6
229.6
203.5
201.2
491.5
488.4
Investment Securities
171.7
197.3
188.4
237.3
227.9
221.5
472.7
541.5
670.1
769.0
911.5
1,089.4
Investment Properties
13.8
12.0
10.1
9.1
10.4
13.9
Other Assets
27.2
20.5
22.1
25.0
31.5
50.4
862.0
1,000.9
1,094.2
1,241.6
1,672.8
1,863.6
694.7
782.6
858.6
931.6
1,345.3
1,492.3
Bills Payable/Sub-Notes
54.6
89.0
97.7
100.4
97.3
110.4
Other Liabilities
44.9
40.5
44.1
55.2
65.8
81.3
Total Liabilities
794.2
912.1
1,000.4
1,087.2
1,508.4
1,684.0
67.9
88.7
93.8
154.4
164.4
179.7
862.0
1,000.9
1,094.2
1,241.6
1,672.8
1,863.6
Resources
Total Resources
Liabilities
Deposits
Total Capital
Total Liabilities & Capital
20
Financial Performance Indicators

2009
2010
2011
2012
2013
2014
10.4%
0.7%
11.9%
1.0%
12.4%
1.0%
12.0%
1.2%
14.3%
1.6%
13.6%
1.3%
Margins and Liquidity

Net Interest Margin (NIM)
Loans to Deposit Ratio
Liquid Assets to Total Assets
4.1%
68.0%
40.2%
4.1%
69.2%
42.6%
3.5%
78.1%
35.8%
3.4%
82.5%
35.3%
3.3%
67.8%
43.0%
3.2%
73.0%
38.1%
Cost Efficiency
Cost to Income Ratio
Cost to Assets Ratio
69.8%
3.9%
66.9%
3.7%
65.6%
3.4%
65.2%
3.4%
57.7%
3.0%
60.1%
2.7%
Asset Quality
NPL Ratio
NPL Cover
5.0%
79.8%
4.7%
92.1%
3.4%
106.0%
2.8%
125.7%
1.6%
170.7%
1.3%
188.4%
Profitability
Return on Ave. Common Equity
Return on Average Assets
Capital
CET1
Tier 1 Ratio
Capital Adequacy Ratio
8.4%
12.4%
10.0%
13.8%
Basel II
Basel III
10.0%
15.6%
12.4%
12.8%
14.6%
15.2%
19.1%
14.6%
15.8%
21
Loan Growth
Industry
BDO
22
Deposit Growth
Sustained deposit growth
(P bn)
1,500
1,350
1,492
1,492
1,345
1,200
1,050
900
932
750
600
783
859
450
300
150
0
2010
YoY 13%
2011
2012
2013
2014
1Q15
10%
9%
44%
11%
12%
23
Net Income
Record profits, better quality core earnings
(P bn)
24
22
22.6
20
22.8
18
16
14
14.5
12
10
8.8
8
6
6.0
6.1
2
0
2010
2011
2012
2013
2014
1Q15
24
Capital Adequacy Ratio
Ratios above Basel III standards to support medium term

growth plans
16%
14.0%
14%
12%
10%
12.3%
10.0%
CAR
10.0%
Tier 1
8%
CET1
6%
4%
11.9%
8.5%
2%
0%
Minimum Basel III
Requirement
BDO 1Q15
25
I.
Overview
II.
III.
IV.

V.
Shareholder Structure
Majority owned by the SM Group
As of 31 Mar 2015
Nationality
Shareholdings
%
Ownership
SM Investments Corp.
Filipino
1,463,657,368
40.9%
PCD Nominee
Foreign
1,220,997,797
34.1%
PCD Nominee
Filipino
338,794,078
9.5%
Multi-Realty Development Corporation
Filipino
236,476,739
6.6%
Sybase Equity Investments Corporation
Filipino
183,958,132
5.1%
Name
Sources:
BDO Top Top
100 Shareholders,
SMIC, and PCD
Sub-Total,
Shareholders
Total Outstanding Shares
96.2%
3,580,875,328
Source: Top 100 Shareholders as of 31 Mar 2015
27
The SM Group
Harnessing synergies with the countrys largest conglomerate
Retail
Financial
Services
Property
Largest local retail chain with 269

stores nationwide
Dominant domestic mall
developer/operator 52 malls with
GFA of about 6.6mn sqm
Biggest domestic banking operations

Interests in BDO and China Bank
Leading residential condominium

developer in Metro Manila in terms
of units sold
Among the fastest growing
commercial, resorts and hotel
developers in the Philippines
Access to SMs
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
28
Board of Directors
One of the strongest Board of Directors in the industry with
extensive banking and related experience
Experienced
Bankers
Practicing
Lawyers
Successful
Entrepreneur
8 directors out of 11 have an average of 34 years of banking

experience
2 directors are practicing attorneys, and the other a

Philippine bar topnotcher and member of the State Bar of
New York
1 director is a successful businessman who has made his

mark in the field of retailing
29
Board of Directors
With broad business and professional experience
Teresita T. Sy
Chairperson first appointed to the Board in 1977
Serves as Director in multiple subsidiaries of BDO
Henry T. Sy Senior
Chairman Emeritus first appointed to the Board in 1976
Founder and Chairman of the SM Group of Companies
Vice Chairperson of SMIC and Director of other SM Group
Started his entrepreneurship career in 1958
companies, including Multi-Reality 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
Chairman of SMIC, SM Prime Holdings and SM Dev. Corp.
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
Nestor V. Tan
President first appointed to the Board in 1998
Holds Directorships of numerous BDO subsidiaries
Jimmy T. Tang
Independent Director first appointed to the Board in 1984
Serves as Independent Director since 2002
Director of the Bankers Association of the Philippines
Previously served as Director since 1984
MBA Wharton School
Chairman and President of AVESCO Group of Companies
Antonio C. Pacis
Director first appointed to the Board in 2004
Director of BDO Capital
Jones M. Castro Jr.

Served as Head for South Asia and SEA at Wells Fargo Bank
Corporate lawyer since 1967
MBA Stanford University
Degree from Harvard Law School
Josefina N. Tan
President of BDO Private Bank
Former Director of EPCIB from 2005 to 2007
Jose F. Buenaventura
Senior Partner of Romulo Mabanta Buenaventura Sayoc & De
Los Angeles Law Offices since 1976
Former Director of Banco de Oro from 2001 to 2005
Master of Laws from Georgetown University Law Center
Cheo Chai Hong

Director of UOB (Philippines), UOB Global Capital Private,
UOB (Thai) and Encus International
Gilberto C. Teodoro
Served as Secretary of National Defense from 2007-2009
Head of Corporate Planning and International of UOB Group
Masters of Laws from Harvard Law School

Topnotcher, 1989 Philippine Bar Examinations
30
Senior Management Team

With extensive professional banking expertise
Nestor V. Tan
President
With BDO since 1997
32-year banking experience
Services
Intermediation
Walter C. Wassmer
Head Business Lending
With BDO since 1997
Ador A. Abrogena
Head Trust and Investments
With BDO since 1990
Maria Theresa L. Tan

General Manager BDO Insurance
With BDO since 2009
22-year banking and insurance experience
Rolando C. Tanchanco
Head Consumer Lending
With BDO since 2004
Jonathan C. Diokno
Head Remittance Origination
With BDO since 2001
Geneva T. Gloria
Head Remittance Distribution
With BDO since 2003
Jaime C. Yu
Head Branch Banking
With BDO since 1997
Josefina N. Tan
Head Private Banking
With BDO since 2003
Edwin Romualdo G. Reyes

Head Transaction Banking
With BDO since 2015
Pedro M. Florescio III

Head Treasury
With BDO since 2001
Eduardo V. Francisco
Head Investment Banking
With BDO since 1999
Vacant
Head Asset Management
Corporate Support
Ricardo V. Martin
Head IT Group
Evelyn L. Villanueva
Head Risk Management
Luis S. Reyes Jr.

Head IR & Corplan
With BDO since 2001
With BDO since 2002
With BDO since 2003
Anthony Chua
Head Global Operations
With BDO since 2014
Over 30 years of banking
experience
Dennis B. Velasquez
Head Central Operations
Evelyn C. Salagubang
Head Human Resources
Rafael G. Besa
Head Marketing
Lucy Co Dy
Head Comptrollership
With BDO since 1995
With BDO since 2007
With BDO since 2007
With BDO since 1985
20-year experience in HR
Vacant
Head Compliance & Legal
31
I.
Overview
II.
III.
IV.

V.
Corporate Governance
Strict adherence to best practices and ethical standards
Five (5) principles of CG
practices:
Accountability
Fairness
Integrity
Transparency
Performance
Structure and mechanisms

in place:
Independent Directors
Segregation of roles
Checks & Balances
Code of Conduct &
Business Ethics
Full transparency and

timely information
disclosures
Protection of stakeholders
rights and interests
33
Compliant with regulatory requirements
Board
Minimum no. of Independent Directors (2)
4 Independent Directors
Cert. Of Attendance Board Members

Cert. Of Qualification of Ind. Directors
Corporate Governance Manual
CG Guidelines Disclosure Template
SEC Annual Corp Governance Report
Leading Practices on Corp Governance

Code of Conduct and Business Ethics
34
Recognition for CG initiatives
Silver Awardee
Corp Governance Scorecard
Awardee for ten (10)

consecutive years
Among the Top 50 PubliclyListed Companies in the

ACGS Scorecard 2013
35

BDO Foundations Advocacies
Disaster Response
Relief operations using the SM supply chain and ground

handling by BDO branches
Rehabilitation and reconstruction
Shelter/housing and resettlement areas, health centers,

school buildings/classrooms and multi-purpose halls
Community Development & Capacity Building
Sustainable livelihood, skills training & practical education
BDO Foundation Micro-Finance Center for

microfinance training and development programs
Project BANGKA (motorized boats with fishing nets for

San Dionisio fishing village in Iloilo)
36

BDO Foundations Advocacies
Healthcare
Construction/modernization of public health centers/

facilities
Green/Environmental Initiatives
Go Green Program
Energy conservation/efficiency, proper solid and hazardous

waste disposal
Tree planting, vegetable growing projects
BDO-World Wide Fund for Nature (WWF) Philippines

Partnership Project
37

Recognition for CSR initiatives
Among the Best CSR

Companies in the Philippines
Among the Best

Environmentally Responsible
Companies in the Philippines
38
I.
Overview
II.
III.
IV.

V.
Institutional Awards and Citations, 2014-2015

Best Bank in the Philippines
Strongest Bank in the Philippines

Best
Retail Bank
in the Philippines
Best
Private Bank
In the Philippines
Best
Investment Bank
in the Philippines
Best
Equity House
in the Philippines

Excellence
In Corporate
Governance
Platinum Award
Excellence
In Investor
Relations
Excellence
In Investor
Relations
Among the Best

Investor Relations
Companies in the
Philippines
Teresita Sy-Coson
One of Asias Best CEOs
(Investor Relations)
Platinum Award
Pedro M. Florescio
One of Asias Best CFOs
(Investor Relations)
Among the Best Senior

Management IR Support
Most Organized
Investor Relations
Luis S. Reyes, Jr.

One of the Best IR
Professionals (Phils)
Institutional Awards and Citations, 2013 - 2014

Best FX Bank/
Provider
Fund House
of the Year
Best in
Trade Finance
Leading
Counterparty Bank
Thank you.

BDO Investor Presentation 2015Q1

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1

Ownership, Board and Management

Corporate Governance and

Awards and Citations

The Philippines largest bank with total

A full-service universal bank with one of

Part of the SM Group, one of the

Expansion through organic growth and M&As

Acquired UOB Philippines

Acquired 1st e-Banks

Merged with Dao Heng

Merged with Equitable

Full Service Bank

Complete range of financial products and services

SEA, HK, Taiwan & Korea - 9

Philippines 892 Branches

Domestic Distribution Network

449 Metro Manila

Longer Banking Hours,

Gross Customer Loans

(in PHP billions)

BDO Market Share 22%

BDO Market Share 17%

Assets Under Management

(in PHP billions)

BDO Market Share 18%

BDO Market Share 34%

The Banker Top 1000 World Banks Tier 1 Capital

BDO Unibank, Inc.

Bank Negara Indonesia

The Banker Top Philippine Banks Tier 1 Capital

BDO Unibank, Inc.

Metropolitan Bank & Trust

Bank of the Philippine Islands

Philippine National Bank

Rizal Commercial Banking Corp.

China Banking Corporation

Union Bank of the Philippines

Foreign Currency Issuer/Debt Rating (IDR)

Baseline Credit Assessment (BCA)

Adjusted BCA Rating

Financial Strength Rating

Counterparty Risk (CR) Assessment

Source: Moodys, Fitch and Capital Intelligence

Trading Fact Sheet

American Depositary Receipts (ADR) Program Details

Sponsored Level 1 ADR

Depositary Bank's Local Custodian

Deutsche Bank AG, Manila Branch

+ 1 212 250 9100

Ownership, Board and Management

Corporate Governance and

Awards and Citations

1Q15 Income Statement

Net Interest Income

2009 to 2014 Income Statement

Net Interest Income

1Q15 Balance Sheet

Gross Customer Loans

2009 to 2014 Balance Sheet

Gross Customer Loans

Financial Performance Indicators

Margins and Liquidity

Capital Adequacy Ratio