bpi investor update · pdf filepnb 7 20.0 15.0 7.0 6.7 5.3 4.4 11 1 4 5 6 10 2016 rank. recent...

CONFIDENTIAL

BPI Investor UpdateStrength and Quality in Earnings

As of December 31, 2016

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 acquired MGT’s stake– GIC now has an effective 5.6% ownership

Summary History of BPI

Pesos Fuertes, 1883

BPI Iloilo, 1897

2BPI Investor Update: Strength and Quality in Earnings

GIC, 5.6%

RCAM*, 8.3%

Ayala Corp,48.3%

Public Float,37.8%

Shareholders & Equity Profile

Fundamentals Description

PCOMP Index 5.62% weight

Stock Price P105.50 per share

BV per share P43.15

P-B Ratio 2.44x

P-E Ratio 18.85x

Dividends P1.80 per share

Issued Shares 3.939 bn

Market Cap P415.600 bn

Shareholders

BPI Investor Update: Strength and Quality in Earnings

As of April 4, 2017

3

* Roman Catholic Archdiocese of Manila

BPI: 165 Years in the Philippines

Branches ATMs/CAMs

Expansive reach in both traditional and electronic channels

7.9 million customers

834 branches*

3,061 ATMs & CAMs

15,201 employees

BPI Investor Update: Strength and Quality in Earnings 4

* Local and International

Electronic ChannelsSignificant leadership in technology-based banking


+14.2%

+21.3%

+19.4%

-

Express Mobile

Express Phone+3.2%

No. of Clients 2014 2015 2016

Express Online 1,930,609 2,273,882 2,596,985

Express Mobile 1,261,287 1,683,850 2,043,290

Express Phone 870,576 785,876 760,822

ExpressLink 21,611 25,675 30,663

* Philippine Statistics Office – Estimated OFW, 2015

ITSC MeetingBPI Investor Update: Strength and Quality in Earnings

A Leader Among Philippine Banks in OF Remittances

BSP Vol (USD bn) 24.63 25.77 26.90 5%

BPI

Vol (USD bn) 6.98 6.97 6.79 -3%

Share (%) 28% 27% 28%

Total OFWs* BPI Tie-Ups2.4 million 140

OFW Diaspora & Global BPI Tie-Ups

Canada

$ 573 mn 4Europe

$ 133 mn 5 Asia$ 4,913 mn 3

Middle East$ 7,553 mn 2

U.S.A

$ 8,931 mn 1

Remittance 2014 2015 2016 YoY Total OFWs* BPI Tie-Ups

6

Excellence in Equity Capital Markets


Underwriter 2016 Rank Mkt Share (%) Issues

UBS 1 20.4 3

JPMorgan 2

BPI Capital Corp 3

BDO Capital 4

5RCBC

HSBC 6

6Citi

12.9

12.1

11.5

7.3

5.3

5.3

4

8

4

1

1

2

Excellence in Debt Capital Markets


Underwriter Mkt Share (%) Issues

China Bank 1 25.6 11

BDO Capital 2

BPI Capital Corp 3

ING Group 4

5First Metro

Security Bank 6

7PNB

20.0

15.0

7.0

6.7

5.3

4.4

11

1

4

5

6

10

2016 Rank

Recent Distinctions


March 2016 Equity House of the Year , Investment House of the YearInvestment House Association of the Philippines

May 2016 Best Investment Bank, Best ECM & DCM HouseFinance AsiaBest Managed Bank in the PhilippinesThe Asian Banker

Sep 2016

Oct 2016

Dec 2016

Best SME Bank Alpha Southeast Asia

Best Domestic BankFinance Asia

Best in Retail ServicesThe Asian Banker

Highest Volume Growth, Top Consumer Prepaid IssuerMore Fun Prepaid & Ayala Malls Amore Cards: Visa

BPI Management Team

Picture

Cezar P. ConsingPresident & CEO

Retail ClientsEnterpriseServices

Financial Products &

Services

Corporate Clients

Global Markets

10

NatividadAlejo

JosephGotuaco1

Daniel Montecillo

SimonPaterno

AntonioPaner

Ramon Jocson

Theresa Javier2

Edgardo Madrilejo

EVP EVP & CFO EVP EVPEVP &

Treasurer EVP SVP SVP & CRO

Strategy &Dev’t

Risk Mgmt

1 Incoming Retail Clients Head; 2 Incoming CFO


2016 Performance HighlightsSustained growth in earnings, higher trading income realized

11

in P Bn 2015 2016 YoY

Balance Sheet

Assets 1,516.4 1,725.7 13.8%

Net Loans 872.9 1,040.7 19.2%

Deposits 1,275.7 1,431.3 12.2%

CASA 922.4 1,051.7 14.0%

Capital 150.3 165.1 9.9%

Income Statement

Net Revenues 59.3 66.6 12.1%

Net Int Income 38.6 42.4 9.7%

Non-Int Income 20.7 24.2 16.7%

Opex 31.9 34.9 9.6%

Provisions 4.0 4.8 20.7%

Net Income 18.2 22.1 20.9%

Comp Income 16.7 21.7 30.2%


2016 Performance HighlightsStrong Balance Sheet, adequately capitalized for growth

12

2015 2016 YoY

Balance Sheet

LDR 68.4% 72.7% 4.3%

CASA Ratio 72.3% 73.5% 1.2%

Profitability

CIR 53.7% 52.5% -1.2%

ROE 12.3% 13.8% 1.4%

ROA 1.3% 1.4% 0.1%

Asset Quality

Gross 90-Day NPL 1.6% 1.5% -0.1%

NPL Cover 110.2% 118.7% 8.5%

Capital

CAR 13.6% 13.0% -0.6%

CET1 12.7% 12.1% 0.6%


16.7

21.7

2015 2016

18.2

22.1

2015 2016

Strong Earnings QualityNet Income +20.9%, Comprehensive Income +30.2% YoY

13

Net IncomeP bn

Comprehensive IncomeP bn

20.9%

YoY Growth

30.2%

YoY Growth


38.6 42.4

20.7 24.2

59.4 66.6

2015 2016

Revenue Growth Remains PositiveCore intermediation business continues to be strong driver of revenues

14

RevenuesP bn

Revenue Mix

Net Interest Income Non-Interest Income


9.7%

16.7%

YoY Growth

12.1%

65.1% 63.7%

34.9% 36.3%

2015 2016

19.3 18.3

2.97.4

22.1

25.7

2015 2016

Non-Interest Income


Securities & FX trading increase significantly: +P4.5 bn (157%) vs last year

Gross non-interest income up by +P3.5 bn (15.9%) vs last year– Corporate Fees– Forex – Trading Gains– Bancassurance

Breakdown of Non-Interest IncomeP bn

1.3%

-27.84%

1 Non-Interest Income at gross

12.1%

-5.1%

157%

YoY Growth

15.9%

87.1% 71.4%Fees

12.9% 28.6%Sec&FX

872.9

1,040.7

2015 2016

Loan Book Has Both Growth and Quality

16

Net LoansP bn

Asset Quality

NPL Cover Gross 90-D NPL


19.2%

Growth

110.2

118.7

1.6%1.5%

2015 2016

115.9 121.1

48.355.2

38.743.0

2015 2016

583.2725.9

98.2

92.7

2015 2016

YoY Growth

Corporates at +20% YoY; Retail at +8%


Corporate Loan BalancesP bn

Retail Loan BalancesP bn

85.6% 88.7%Corp%

14.4% 11.3%SME%

57.1% 55.2%Housing%

23.8% 25.2%Auto%

19.1% 19.6%Cards%

20.1%

-5.6%

24.5%

681.4

818.6

202.8219.3

1 Cards inclusive of Personal Loans

4.5%

14.3%

11.4%

8.1%

YoY Growth

72.3%73.5%

68.4%

72.7%

2015 2016

1,275.7

1,431.3

922.4 1,051.7

2015 2016

Deposit and CASA Growth Remains StrongEfficiency continues to improve with LDR ratio

18

DepositsP bn

CASA Ratio, LDR

12.2%

14.0%

YoY Growth

Total Deposits CASA Deposits CASA Ratio LDR


538.0 564.0

2015 2016

3,606.8 3,605.0

2015 2016

Growth in AUM


Investment AUMP bn

21.2% 20.1%Share

Asset Management FeesP mnYoY Growth

4.8%

-15.8%

YoY Growth

-1.0%

133 149 95 111

982 1,146

794 956

11.6 11.1

10.7

Conso-2015 Conso-2016 Parent-2015 Parent-2016

Qualifying Capital Risk Weighted Assets CAR % CET1 %

Capital Position


CAR % CET1 %

12.713.6 13.0

12.112.011.1

11.610.7

Minimum regulatory requirement: CAR at 10% and CET1 at 6%

6.407.08 7.09

1.78

8.180.00

7.08

0

2012 2013 2014 2015 2016

Special

Regular

Dividend Payment HistoryCash Dividends per Share (P)

Total Cash Dividends (P bn) Payout Ratio1-for-10.555Rights Issue 1-for-9.602

Rights Issue

Regular cash dividend of P0.90 per share, paid semi-annually

Special cash and stock dividends declared time-to-time, as business and CAR requirements allow


1.80 1.80 1.80 1.80

2.300.00

0.00 0.00

2012 2013 2014 2015 2016

Special

Regular

50%

34%39% 39%

32%

2012 2013 2014 2015 2016

Credit RatingsMoody’s1 Fitch Ratings2 Capital

Intelligence3

Bank Financial Strength Rating

- - BBB

LT Local Currency Rating

- BBB- -

LT Foreign Currency Rating

Baa2/Prime-2 BBB- BBB

Outlook Stable Stable Stable

LT Foreign -Philippines

- BBB- -

/1 As of Mar 2017; /2 As of January 2017; /3 As of April 2017


CONFIDENTIAL

Thank you.

As of December 31, 2016

BPI Investor UpdateStrength and Quality in Earnings

bpi investor update · pdf filepnb 7 20.0 15.0 7.0 6.7 5.3 4.4 11 1 4 5 6 10 2016 rank. recent...

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