bpi investor update fy2014
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Founded in 1851, as Banco Español Filipino de Isabel II, by Catholic charities– Antonio de Ayala inaugural member of board
Named Bank of the Philippine Islands (Banco de las Islas Filipinas) after Treaty of Paris (1898)
Ayala y Compañia (present day Ayala Corp.) assumes strategic stake in 1969
Morgan Guaranty Trust Company (“MGT”)purchases stake in People’s Bank, a predecessor company, in 1974
DBS and GIC, Singapore’s sovereign wealth fund, eventually acquire MGT’s stake (21%)
GIC now has an effective 5.6% holdings via Ayala-DBS Holdings Ltd.
History of BPI
Pesos Fuertes, 1883
BPI Iloilo, 1897
Investor Update YTD December 2014 1
Shareholders & Equity Profile
Fundamentals Description
PCOMP Index 5.37% weight
Stock Price P106.00 per share
BV per share P36.64
P-B Ratio 2.89x
EPS** P4.59
P-E Ratio 22.91x
Dividends P1.80 per share
Dividend Yield 1.81%
Issued Shares 3.932 bn
Market Cap P416.79 bn
Trading Volume P373mm 30d ADTV
** Full Year 2014 EPS
Shareholders
Investor Update YTD December 2014 2
* Roman Catholic Archdiocese of Manila
Ayala Corp, 48.3%
RCAM*, 8.3%
GIC, 5.6%
Public Float, 37.8%
As of April 10, 2015
3
Universal banking
Asset management
Our Unibank Businesses
Deposits, securities dealing, asset mgt
International banking
FX dealing
Corporate finance, advisory, underwriting
Securities brokerage
Thrift banking
Thrift banking
Equipment leasing
Thrift Banking
51%
40%
Remittance
Remittance
Investor Update YTD December 2014
BPI: 163 Years in the Philippines
Branches ATMs/CAMs
Expansive reach in both traditional and electronic channels
~7 million customers
825 branches
2,575 ATMs & CAMs
29,344 POS machines
14,542 employees
Investor Update YTD December 2014 4
International Footprint
Branches
• United Kingdom (2)
• Italy (2)
• Hong Kong (1)
Remittance Centers
• Spain (1)
• Hong Kong (4)
Representative Offices
• Tokyo, Japan
• Dubai, UAE
Investor Update YTD December 2014 5
BPI Industry Standing
(In P Bn)
Assets
Net Loans
As of December 2014
Customer Loans
Deposits
Capital
Trust Assets
BPI Market Size RankMarket Share
1,434
800
802
1,177
140
522
10,850
5,548
5,020
8,151
1,097
2,525
13.2
14.4
16.0
14.4
12.8
20.7
3
3
2
3
3
2
Source: Published Statements of Condition
6Investor Update YTD December 2014
Stable profitability, strong risk culture, well-capitalized
Performance Highlights: As of December 2014
Solid Financial Results
Net income of Php 18.0 bn (US$ 406.3 mn)
ROE at 13.75%, ROA at 1.44%
Steady Income Sources
Net interest income up by 15% YoY
Non interest income, ex securities trading gains, up 11% YoY
Managed Operating Costs
Cost-to-income at 53.7%; industry at 61.2%
Robust Balance Sheet Growth
Net loans grew 27% to Php 800 bn (US$ 18.0 bn)
Deposits at Php 1.2 tn (US$ 26.5 bn), up 19%
Improved Asset Quality
Gross-90 day NPL ratio at 1.5%
Reserve Cover at 109%
1
2
3
4
5
Total Equity of Php 144 bn (US$ 3.2 bn)
CAR: 14.85% (vs BSP minimum requirement of 10%)
CET 1 CAR: 13.97% (vs BSP minimum requirement of 6%)
6 AdequateCapital
Investor Update YTD December 2014 7
27.519.9
30.322.2
34.8
21.0
Revenue Breakdown (P bn)
2012 2013 2014
58% 58%62%
42%
42%38%
2012 2013 2014
Total Revenues (P bn)
Net Interest Income Non Interest Income
14%
11%6%
Full year 2014 revenues at Php 55.8 bn(US$ 1.3 bn)
Net Interest Income at Php 34.8 bn(US$ 783.6 mn), up +15%
- Average Assets up by Php 247 bn(US$5.6 bn), or +25%
Non Interest Income excluding securities trading gains was Php 19.7 bn (US$ 444 mn), up +11%
Revenues
Investor Update YTD December 2014 8
47.4
52.555.8
6% 10%
15%
25% 11% 5%
42% 40% 40%
29% 30%30%
29%30%
30%
2012 2013 2014
Operating Expense (P bn)
24.8
6% 26.7
30.08%
12%
Operating Cost
2.9 2.7 2.4
2012 2013 2014
Cost to Asset (%)
Cost to Asset
Investor Update YTD December 2014 10
52.3 50.9 53.761.7 58.9 61.2
2012 2013 2014
Cost to Income (%)
Mortgage Auto Credit Card Personal
Retail Sector 16%
2013 2014
15%
20% 14%
45%
Credit Book
76%
77%
79%
24%
23%
21%
2012 2013 2014
Loan Portfolio (P bn)
Corporate Loans Retail Loans
822.7
650.0
535.8
15%
27%
21%
Top Tier Middle Market SMEs
Corporate Sector 30%
33%
28%
22%
Investor Update YTD December 2014 11
Asset Quality
67.5 %
82.3 %87.9 %
96.0 %105.2 %
109.3 %
3.8 %3.1 %
2.5 % 2.1 % 1.8 % 1.5 %
2009 2010 2011 2012 2013 2014
Reserve Cover NPL Ratio (Gross 90)
NPL ratio improving notwithstanding robust growth in loan portfolio
Investor Update YTD December 2014 12
Downward trend in NPL ratio; adequate reserve cover
19% 18% 17%
43%51%
52%
39%
31%
31%
2012 2013 2014
Demand Savings Time
23%
18%
802.3 B
988.6 B
1.2 T19%
85.2%86.8%
86.4%
14.8%
13.2%
13.6%
2012 2013 2014
Peso FDCU
23%
802.3 B
988.6 B
1.2 T
18%
19%
Deposits Deposits grew by 19% to Php 1.2 tn (US$ 26.5bn)
Demand deposits +11%; Savings deposits +22%
Time deposits +19%
Low cost float deposits at 69% of total deposits
Investor Update YTD December 2014 13
Deposits Breakdown (P bn) Deposits per Currency (P bn)
Capital Position Full adoption of Basel III in January 2014 Minimum CAR at 10% and CET1 at 6%
Investor Update YTD December 2014 14
97 129 69 95
706
866
564701
13.7
14.8
12.2
13.613.0
14.0
12.212.7
Conso-2013 Conso-2014 Parent-2013 Parent-2014
Qualifying Capital Risk Weighted Assets CAR CET1% %
Credit Ratings
15Investor Update YTD December 2014
Moody’s(Dec 2014)
C-(Baa2)
Baa2/Prime-2
Baa2/Prime-2
Stable
BBB-
BBB-
BBB
BBB
Stable
Baa2 BBB-
Bank Financial Strength Rating
Local Currency Deposits
Foreign Currency Deposits -LT
Outlook
Fitch Ratings(Apr 2015)
Capital Intelligence(Dec 2014)
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