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THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS. STRICTLY CONFIDENTIAL.
Investor
Presentation
4Q 2019
THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS. STRICTLY CONFIDENTIAL.
Macroeconomic Overview
2
THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS. STRICTLY CONFIDENTIAL.3
A reflection of the improvement in capital spending
PH: One of the Fastest Growing Economies in ASEAN
PH Investment Spending Almost at par with regional average
Investment/Capital Spending to GDP Ratio (%)
Moderate GDP at 5.9%, but rising per capita income
GDP Per Capita and Real Growth
PHL Current Account Balance vs. Year End USD/PHP
Consumer Debt as % of GDP at 9.8%, has significant upside Peso depreciation has been driven by current account deficit
PH Total Outstanding Loans and Consumer Loans (as % of GDP)
THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS. STRICTLY CONFIDENTIAL.
PH Banking Industry Overview
4
Lower Interest Rates Banking Industry Highlights
Lower interest rates, with average inflation at 2.5% Loan growth continues to moderate at 8.7% Deposit growth also on a downtrend, with M3 at 9.8% Industry LDR at 79.9%
90D T-Bill Average Inflation
With lower inflation in 2019, BSP loosened monetary policy
Date Reserve Requirement Ratio
01/01/2019 18.00%
5/31/2019 17.00%
06/28/2019 16.50%
07/26/2019 16.00%
11/1/2019 15.00%
12/1/2019 14.00%
Date Key Policy Rate
01/01/2019 4.75%
5/9/2019 4.50%
8/8/2019 4.25%
9/26/2019 4.00%
11.6%
8.8%6.5%
16.5% 13.7% 8.7%
75.6% 79.0% 79.9%
11.9%9.5% 9.8%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
0.0%
10.0%
20.0%
30.0%
2017 2018 Nov-19
LDR
M3
, Lo
an &
De
po
sits
Gro
wth
LDRM3Deposit Growth Loan Growth
2.0%
5.1% 4.6%
2.9%
5.2%
2.5%
0.0%
2.0%
4.0%
6.0%
0.0%
4.0%
8.0%
12.0%
16.0%
2017 2018 2019
Ave
rage
Infl
atio
n
90
D T
-Bill
THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS. STRICTLY CONFIDENTIAL.
2019 Financial and Operating
Highlights
5
THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS. STRICTLY CONFIDENTIAL.
C/I
NIM
2017 2018 2019
2.19% 2.27%2.40%
54.26%55.53%
53.08%
2017 2018 2019
1.27%
1.20%
1.38%
12.75%
2.91%3.11%
3.35%
2017 2018 2019
ROA
6
Strong revenues driven by solid core income Higher NIMs Significant increase in trading income Lower NPLs and Higher Loss Coverage
Robust financial results
22.42B23.08B
28.80B
Up24.8%
Net Income and ROE
10.21%
10.97%
2017 2018 2019
Non-InterestIncomeNet InterestIncome48.04B 55.84B 65.94B
22.98B22.68B
28.39B
Revenues
71.02B78.52B
94.33B
ROA and NIM Cost to Income and Cost to Asset2017 2018 2019
38.53B 43.60B 50.08B
Operating Expense2017 2018 2019
Provisions
3.80B 4.92B 5.82B
Up20.1%ROE
C/AUp 14.8%
Up 18.3%
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2017 2018 2019
16.09%12.74%
2017 2018 20192017 2018 2019
7
Strong Balance Sheet
• Loans grew by 8.9%• Investment Securities higher
by 3.8% (₱ 12.7B)• Liquidity Coverage Ratio at
166.7%• Net Stable Funding Ratio at
126.2%• LDR increased from 85.4% to
87.0%
• Deposits grew by 6.9%• Tapped the capital markets for
alternative funding sources• Issued a total of ₱ 9.6B in peso
borrowings and CHF 100M and USD 300M in foreign currency borrowings
• CASA ratio fell from 71.9% to 69.1%• Borrowings as a percentage of
Liabilities decreased from 9.1% to 7.8%
• Strong capital position with CET1 and CAR well above regulatory requirements
• Declared ₱ 8.1B in cash dividends
1.90T2.09T 2.21T
1.20T 1.35T 1.48T
Assets
5.7% Assets
8.9% Loans
Liabilities
1.56T 1.59T 1.70T
0.08T0.17T
0.15T-9.6%
Borrowings
6.9% Deposits
Capital
181B 249B 270B
11.84% 15.19% 15.17%*CET1
CAR 16.07%*
* 2019 - indicative
THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS. STRICTLY CONFIDENTIAL.
48.055.8
65.9
23.322.7
28.471.378.5
94.3
0
20
40
60
80
100
2017 2018 2019
20192018
20% growth in revenue Core income up on higher NIMs
8
Strong Revenue Base
Shift to high-margin loans supported by increasing loan yields despite policy rate cuts
19.1%*Includes DST; Net of GRT
20.1%
Net RevenuesAmounts in P bn
Non Interest IncomeNet Interest Income* Net Revenues
YoY Growth
57.7% 71.1% % to Total Revenues
NIM
Asset Yield
COF
18.1%
25.2%
Net Interest IncomeAmounts in P bn
69.9%67.4%
48.055.8
65.9
0
20
40
60
80
100
2017 2018 2019
3.99%
4.47%
5.16%
2.91%3.11%
3.35%
1.18%1.52%
2.04%
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253.8 287.9
2018 2019
4.3 5.0
2018 2019
55.1 57.8
2018 20191,210 1,223 1,268
1,355 1,349 1,354 1,372
1,475
400
600
800
1,000
1,200
1,400
1,600
1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19
76.2%79.7%
82.2%85.4% 83.9%
81.7%84.7% 87.0%
Faster growth for retail loans compared to 2018, with replacement ratios >1 maintained
Strong growth in Credit Card Loans (CCL) and related fees
Microfinance loan volume doubled, SME loans starting to pick up2017 2018 2019
Corporate 78.9% 77.0% 76.1%
Consumer/SME 21.1% 23.0% 23.6%
Consumer 18.5% 18.4% 19.2%
SME 2.5% 4.6% 4.4%
Microfinance 0.0% 0.2% 0.3%
9
Moderate Loan Growth
Growth in high-margin businesses sustained
Auto (in P bn) Mortgage (in P bn)
CCL (in P bn) Fees (in P bn)
+15.5%+22.3%
+12.0%+4.9%
December 2019 YTD Auto Mortgage
Average replacement ratio 1.09 1.47
Microfinance (in P bn)
Full year loan volume reflects moderate growth trend
Corporate growth maintained while gradually increasing share of Consumer & SME
YoY Growth
8.9%
Quarterly loan volume and LDRs(2018-2019, in P bn and %)
+2.0x
+7.9%
SME (in P bn)
+5.8%
Corporate Loans
132.7148.6
2018 2019
61.5 75.2
2018 2019
2.1
4.3
2018 2019
62.8 66.5
2018 2019
1,057.0
1,140.0
2018 2019Consumer Loans
+13.4%
(In P bn)
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1
10
2.7%
17.6%
CASA Time Total Deposits
Deposits/Total LiabilitiesTotal Liabilities (in P bn)Deposits (in P bn)
Sustained growth in retail and corporate deposits Customer deposits account for almost 90% of total funding, of which 61% are retail clients
Quarterly deposit volume and CASA Ratio(2018-2019, in P bn and %) YoY Growth
6.9%
Stable Funding Franchise
The Bank’s 2019 LCR and NSFR are both above 100%, much higher than the internal triggers and regulatory requirements
On August 27, 2019, S&P Global Ratings assigned ‘BBB+’ long-term issuer credit rating (ICR) to the Bank, at par with the Philippine sovereign rating of ‘BBB+’. BPI is the first private domestic bank in the Philippines to achieve investment-grade ratings of bbb+/BBB+ in both Stand-alone Credit Profile and ICR ratings.
Issue Date: September 3, 2019 Amount Raised: USD 300 million Issue Price: 99.641 Coupon: 2.500%
Issue Date: August 29, 2019 Amount Raised: CHF 100 million Issue Price: 100.040% Coupon: 0.000%
CHF ASEAN Green Bond Issuance USD ASEAN Green Bond Issuance
Tapping alternative funding sources through milestone transactions
Issue Date: November 25, 2019 Amount Raised: PHP 9.6 billion Interest Rate: 4.30% p.a. payable quarterly
Issue Date: October 25, 2019 Amount Raised: Over PHP 3 billion Issue Price: 4.00% p.a. payable quarterly
LTNCTDs Issuance BPI Family Bank Maiden Bond Issuance
1,136 1,156 1,142 1,140 1,131 1,133 1,120 1,171
451 379 401 446 477 526 500 524
1,587 1,535 1,542 1,586 1,608 1,658 1,620 1,695
-
400
800
1,200
1,600
2,000
1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19
71.6%75.3% 74.0%
71.9% 70.3%68.3% 69.1% 69.1%
1,431 1,562 1,586
1,695 1,558
1,720 1,834 1,932
91.9% 90.8%86.5% 87.8%
-
400
800
1,200
1,600
2,000
2016 2017 2018 2019
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4.9 4.6 4.5 5.8 5.7 5.4 5.7 5.5
1.1 0.6 0.6
0.7 1.0 1.4 3.1
0.5 6.0
5.2 5.1
6.4 6.7 6.8
8.8
6.1
0
3
6
9
12
1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19
11
YoY Growth
Non-Interest Income on the uptrend
Fees, Comms., Others Trading Income Non-Interest Income
(In P bn)
25.2%
114.7%
12.3%
Steadily growing fee-based income, up 12%Coming from diversified income sources
and new revenue streams Significant securities trading income in 2019
Fees, Comms, Others Trading Income Non-Interest Income
% to 2019 Total Non-Interest Income(In P bn)
19.9 19.8 22.3
3.4 2.8
6.1 23.3 22.7
28.4
0
10
20
30
40
2017 2018 2019
Cards, 17.6%
Securities Brokerage, 0.8%
Investment Banking, 1.6%
Retail Loans, 3.8%
Remittance, 3.1%
Digital Channels, 3.6%
Asset Sales, 4.6%
Leasing, 7.0%
Forex, 7.3%
Transaction Banking, 8.4%
Insurance, 8.1%
Trust, 11.2%
Service Charges, 1.6%
Sec Trading, 14.1%
Deposit, 9.9%
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3.7 3.9 3.8 3.9 4.1 4.5 4.3 4.6
3.2 3.8 3.6 4.5 3.7 4.1 4.4 4.3 1.6
2.0 1.7 2.0 2.0
2.0 2.4 2.2 1.3
1.7 1.7 1.2 2.3 1.6 1.7 1.9
9.7 11.5 10.9 11.5 12.1 12.2 12.8 13.0
-
10.0
20.0
1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19
55.5%
53.1%
15.3 17.5
15.1 16.5
7.2 8.7
5.9
7.5 43.6
50.1
-
20.0
40.0
60.0
2018 2019
12
Amounts in P bn
Board-reported
Manpower
Others
Premises*
CIR
Technology
Total Opex
Operational Efficiency
QuarterlyFull year
14.9%
14.2%
8.8%
26.0%
19.9%
With effective cost management, Cost-to-Income ratio improved to 53%
YoY Growth
* Includes 3Q 2019 transition adjustment and impact of PFRS 16 (Leases)
52.8%
61.1%
55.2%53.2% 53.0% 52.8% 51.0%
55.7%
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25.4 25.2 25.5 25.1 24.8
85.5%
92.6%97.5%
99.3%102.14%
2018 1Q 19 2Q 19 3Q 19 4Q 19
1.85% 1.85% 1.86% 1.81%
1.66%
NPL Level(in P bn)
91.3% 95.7%100.7% 102.7% 104.8%
Good Asset Quality
* Allowance for loan losses** NPL cover excludes reserves for contingent exposures*** Loss cover includes reserves for contingent exposures
13
Total Allowance Provision for Losses Credit Cost
NPLCover**
NPL RatioLoss Cover***
NPL Cover Industry - NPL CoverLoss Cover
Lower NPL at 1.66% NPL Cover increased to 102% Credit Cost steady at 43 bps
88.3% 92.6% 97.5% 99.3% 102.1%91.3% 95.7% 100.7% 102.7% 104.8%105.2% 95.7%
93.3% 92.0%
0%
40%
80%
120%
160%
2018 1Q 19 2Q 19 3Q 19 4Q 19
18.2 20.3
22.4 25.4 4.8 3.8
4.9 5.8
0.53% 0.36% 0.40% 0.43%
-
10
20
30
40
2016 2017 2018 2019
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1.39 1.27 1.20 1.34 1.341.42 1.38
1.20 1.17 1.12 1.17 1.24 1.30
10.46% 10.17%9.40% 9.64% 9.84% 10.27%
0.0
1.0
2.0
3.0
4.0
2016 2017 2018 1Q 19 2Q 19 3Q 19 4Q 19
13.7%14.9%
13.6% 13.0% 12.7%
16.1% 16.1%
13.0%14.0%
12.7%12.1% 11.8%
15.2% 15.2%
2013 2014 2015 2016 2017 2018 2019*
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
6,402 7,077 7,078 7,086 7,089 7,598 8,108
18,811 18,039 18,23422,050 22,416 23,078
28,803
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2013 2014 2015 2016 2017 2018 2019
Strong capital position underpinned by sustained internal capital generation
14
3
10% Regulatory Minimum
CAR
Strong Capital and Earnings
CAR CET1
Assets/Equity (in x)
BPI - ROA Industry - ROA BPI - ROE Industry - ROE
Modest financial leverage
Above industry profitability metrics
No need to raise capital to support future growth
YTDfigures
Consistent dividend payments
Net Profit to shareholders (in P mn)Dividends (in P mn) Payout ratio
11.410.1 10.1 10.5 10.5
8.3 8.2
5.0
10.0
15.0
20.0
2013 2014 2015 2016 2017 2018 2019
34.0%
39.2% 38.8%
32.1% 31.6% 32.9%
28.2%
* 2019 - indicative
13.77%12.75%
10.21% 10.66% 10.71% 11.26% 10.97%
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21,860 22,205
2018 2019
1.76 1.90
2018 2019
671 671 671 671 682 694 705
6 6 4 10 103
200 300
143 143 143 150 157
162
162
820 820 818 831 942
1,056 1,167
0
200
400
600
800
1,000
1,200
1,400
2013 2014 2015 2016 2017 2018 2019
BanKo achieved target of 300 branches,moderate build-out for BPI branches Digital penetration now more than 20%
15
2
Online/Mobile Active Usersrolling 3 mos (in mn)
Elink/Bizlink Active Usersrolling 3 mos (actual)
YoY Growth %Penetration %
Ave. Deposit per Branch* = P1.955 bn
Local BranchesActual Count
BFB
BanKo
BPI
Total22.2%22.6%
Note: Based on a growing customer base
23.6%23.6%
* BPI and BFB only
Reallocating manpower to supportgrowth in consumer and SME
2017 2019 p
SME 287 760 +473
Consumer 1,795 1,887 +92
Microfinance 956 2,816 +1,860
Branches 7,556 9,761 +2,205
Headcount for Consumer/SME
10,594 15,224 +4,630
p% vs 2017 +44%
Total BPI Headcount
17,046 21,429+4,383 +25%
Branch and Digital Channels
8.0%
2.0%
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Appendix
16
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Macroeconomic & Industry Indicators
Source: Bangko Sentral ng Pilipinas & Philippine Statistics Office1 M3 as of November 20192 Customer Loans (Loans and Receivables, net of Allowance for Credit Losses)
2013 2014 2015 2016 2017 2018 2019
GDP Growth 6.1% 6.6% 6.7% 6.6% 6.6% 6.1% 5.9%
Inflation 3.6% 2.9% 0.3% 2.0% 2.9% 5.2% 2.5%
M31 31.8% 11.2% 9.4% 12.8% 11.9% 9.5% 7.7%
90D T-bill 0.3% 1.3% 1.7% 1.4% 2.0% 5.1% 4.6%
Overnight RRP 3.5% 4.0% 4.0% 3.0% 3.0% 4.75% 4.0%
Industry (in P bn except ratios) 2013 2014 2015 2016 2017 2018 Nov 2019
Customer Loans 2 4,896.95 5,832.38 6,527.27 7,612.12 8,865.60 10,077.93 9,774.60
Deposits 7,608.87 8,524.55 9,231.34 10,506.56 11,726.97 12,764.13 13,312.31
Loan Growth 15.8% 19.1% 11.9% 16.6% 16.5% 13.7% 8.7%
Deposits Growth 32.2% 12.0% 8.3% 13.8% 11.6% 8.8% 6.5%
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Strong revenue and controlled opex led to robust performance Solid core income due to NIM expansion, supported by growing fee income Substantial increase in trading gains in the declining rate environment Higher Comprehensive Income on positive mark to market valuation of securities
18
Revenues
Net Int Income
Net Income
Non-Int Income
in Php billion
Operating Expenses
Compre Income
2018 2019 r
Provisions
PPOP
Profitability
78.52 94.33 +20.1%
55.84 65.94 +18.1%
22.68 28.39 +25.2%
43.60 50.08 +14.8%
34.92 44.26 +26.7%
4.92 5.82 +18.3%
23.08 28.80 +24.8%
21.88 28.77 +31.5%
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Total Assets
Deposits
Net Loans
AUM
in Php billion
Gross Loans
LDR
CASA Ratio
Equity - BPI
Balance Sheet
2018 2019 r
2,085 2,205 +5.7%
1,369 1,492 +8.9%
1,355 1,475 +8.9%
1,586 1,695 +6.9%
249 270 +8.5%
692 832 +20.1%
85.44% 87.02% +1.6 ppt
71.89% 69.08% -2.8 ppt
Moderate Balance Sheet growth, tracking industry levels
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December 2019 Financial Highlights
YoY FY
in PHP bn in USD mn in PHP bn in USD mn in PHP bn in USD mn in PHP bn in USD mn r r
Balance Sheet
Assets 2,085.23 39.66 2,205.03 43.55 5.7% 5.7%
Net Loans 1,354.90 25.77 1,475.34 29.14 8.9% 8.9%
Deposits 1,585.75 30.16 1,695.34 33.48 6.9% 6.9%
CASA 1,139.93 21.68 1,171.20 23.13 2.7% 2.7%
Capital 248.52 4.73 269.58 5.32 8.5% 8.5%
4Q YoY FY YoY
Income Statement r r
Net Revenues 21.64 0.41 78.52 1.49 23.33 0.46 94.33 1.86 7.8% 20.1%
Net Interest Income 15.21 0.29 55.84 1.06 17.28 0.34 65.94 1.30 13.6% 18.1%
Non-Interest Income 6.43 0.12 22.68 0.43 6.05 0.12 28.39 0.56 -5.9% 25.2%
Opex 11.52 0.22 43.60 0.83 12.99 0.26 50.08 0.99 12.8% 14.8%
Pre-Prov Operating Profit 10.12 0.19 34.92 0.66 10.34 0.20 44.26 0.87 2.2% 26.7%
Provisions 2.08 0.04 4.92 0.09 1.25 0.02 5.82 0.11 -40.0% 18.3%
Net Income 6.07 0.12 23.08 0.44 6.77 0.13 28.80 0.57 11.6% 24.8%
Comprehensive Income 6.58 0.13 21.88 0.42 5.65 0.11 28.77 0.57 -14.1% 31.5%
FY 2019 4Q 2018 FY 2018 4Q 2019
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* 2019 - indicative
December 2019 Financial Highlights
YoY
r ppt
Balance Sheet
LDR 85.44% 87.02% 1.58%
Profitability
NIM 3.11% 3.35% 0.24%
CIR 55.53% 53.08% -2.44%
ROE 10.21% 10.97% 0.76%
ROA 1.20% 1.38% 0.18%
Asset Quality
NPL Ratio 1.85% 1.66% -0.19%
NPL Cover 85.45% 102.14% 16.69%
Capital*
CAR 16.09% 16.07% -0.02%
CET1 15.19% 15.17% -0.02%
Dec 2018 Dec 2019
THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS. STRICTLY CONFIDENTIAL.22
Various, 5.0%
RCAM1, 7.3%
Ayala Corp2, 48.6%
Public Float,39.2%
Shareholders
As of December 31, 2019
1 Roman Catholic Archdiocese of Manila2 Includes share in Liontide Holdings Inc.
Fundamentals Description
Stock Price P87.90 per share
BV per share P59.81
P-B Ratio 1.5x
P-E Ratio 14.1x
Dividends P1.80 per share
Market Cap P396.17 bn
Trading Fact Sheet Description
Type Common
Stock Ticker BPI
ISIN PHY0967S1694
Exchange Philippine Stock Exchange
Par Value 10.00
Outstanding Shares 4,507,071,644
Foreign Ownership 31.5%
Shareholders & Equity Profile
THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS. STRICTLY CONFIDENTIAL.23
Cezar “Bong” ConsingPresident & CEO
Risk Management
John-C Syquia
JojoOcampo
MonJocson
TereMarcial Javier
EVP EVP EVP & COO EVP & CFO
Strategy and Finance
MayetteGayares
SVP & CRO
GinbeeGo
BFB President
EricLuchangco
SVP
An-anKingSVP
CathySantamariaSVP & CMO
JoviAlonso
SVP & CCO
Sheila Tan
AMTC President
Chief CreditCredit
As of January 31, 2020
Corporate Banking
Mass Retail Products
Business Banking
Core Retail Products
Sales & Service Channels
MarketingWealth
Management
EnterpriseServices
BPI Management Team
Dino Gasmen
SVP & Treasurer
Global MarketsGlobal
Markets
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BPI Management Team Bios
Cezar "Bong" Consing
President &CEO
23 years with BPI
• Elected President and CEO since 2013
• Director of BPI from 1995-2000, 2004-2007 and 2010-present
• Former Head of Investment Banking, J.P. Morgan Asia Pacific
• Currently also serving on the boards of various subsidiaries of BPI
MonJocson
EVP & COO
4 years with BPI
• Chief Operating Officer since January 2019, and Head of Enterprise Services
• Formerly Vice President & General Manager of IBM Global Services and Managing Director of IBM Philippines
• Served on the Economic Development Board of Singapore
• Vice-Chairman, CyberSecurity Committee of the Bankers Association of the Philippines
Tere Marcial Javier
EVP & CFO
• Chief Finance Officer and Head of Strategy and Finance since April 2017
• 25 years of banking experience
• Serving on the Board of BPI Europe, PLC., BPI MS, BPI Global Payments, BPI Payment Holdings
• Previously served on the BPI Trust Committee and Board of BPI Investment Management, Inc.
• Previously held senior positions in Corporate Banking and Asset Management & Trust
25 years with BPI
John-CSyquia
EVP
4 years with BPI
• Head of Corporate Banking since January 2018
• Former President of BPI Capital Corp.
• Over 29 years of experience in financial services
• Previously ,Country Head of Corporate Clients for Standard Chartered Bank, Head of Corporate Finance at ING Bank Manila, and Head of Strategy and Business Development at ING Asia Pacific Ltd
JojoOcampo
EVP
24 years with BPI
• Head of Mass Retail, Former Chief Marketing Officer
• Serving on the Boards of BPI Payment Holdings Inc, BPI Global Payments, BPI Direct BanKo, AF Payments Inc, and Zalora
• 24 years of banking experience
• Previously held several positions in Unsecured Lending Cards, Payments, Remittances, Deposits, Kiosk Banking & Customer Segments
As of January 31, 2020
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BPI Management Team Bios
As of January 31, 2020
Dino GasmenSVP &Treasurer
6 years with BPI
• Assumed position of Treasurer and Head of the BPI's Global Markets in January 2020
• 26 years of banking experience
• Chairman of BPI's Asset & Liability Committee
• 17 years in HSBC Manila with stints in the UK, Indonesia, and Vietnam
Eric LuchangcoSVP
6 years with BPI
• Head of Business Banking since June 2019
• Previously headed Corporate Credit Products Group, was head of Debt Capital Markets for BPI Capital and served on the Board of BPI Securities
• 23 years of experience in financial services
• Previously worked with Daiwa Capital Markets
GinbeeGoBFB President
16 years with BPI
• President of BPI Family Savings Bank since June 2017
• 20 years of banking experience
• Previously served as SVP of Retail Loans Group and Card Banking Group
• Director of Transunion Phils & Chairman of BPI Payment Holdings, Inc.
• Secretary & Trustee of Chamber of Thrift Banks
An-an KingSVP
34 years with BPI
• Head of Branch Sales and Service Channels since October 2018
• Served as BFB Director (2015-2017), Chairman of BPI Remittance Centre (HK) Ltc. (2016-2018)
• 34 years of banking experience
• Chair, Unibank WoW Committee and Excellence Retail Awards Committee
Cathy SantamariaSVP & CMO
8 years with BPI
• Chief Marketing Officer since November 2018
• Over 31 years of marketing experience
• Previously segment head of Globe Telecom Touch Mobile and Mobile Business
• Former Marketing Director, Kraft Food Philippines; Kraft Foods International Head of Business Development and General Manager
• Vice President, Bank Marketing Association of the Philippines (2018)
Jovi AlonsoSVP & CCO
23 years with BPI
• Chief Credit Officer since January 2017
• Previously involved in Corporate Relationship Management Asian Corporations and PEZA Divisions
• Serving on the Boards of BPI Century Tokyo Lease & Rental Corps
• 30 years of banking experience
• Formerly Japan Desk Head in the World Corporation Group of Citibank, N.A. Manila Branch
Sheila TanAMTC President
6 years with BPI
• 3 years with BPI Asset Management and Trust Corp; Chief Operating Officer (2017-2018)
• Previously headed Strategic Advisory at BPI Capital (2013-2017)
• In the practice of law for more than 25 years
• Former Co-Managing Director of Ayala Group Legal and Chief Legal Counsel of Ayala Land, Inc
Mayette GayaresSVP &CRO
35 years with BPI
• Chief Risk Officer since January 2018, Former Chief Compliance Officer (2012-2017)
• 35 years of banking experience
• Member, Risk Management Committee of the Bankers Association of the Philippines
• Previously served as Director and Treasurer of ABCOMP, Voting Member of the Bankers Institute of the Philippines
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Bank of Philippine Islands Overview
The first bank in the Philippines and Southeast Asia, and the longest tenured bank with almost 170 years of continuous operating history, with highly reputable shareholders, the largest of which include the Ayala Group, the Roman Catholic Church and GIC
Award winning, universal banking franchise licensed by the Bangko Sentral ng Pilipinas, offering a broad range of financialsolutions catering to both retail and corporate clients
BPI has a local distribution network of 1,167 branches & branch-lite units (BLUs), 3 international offices, 2,822 ATMs & CAM, and a manpower complement of 21,429 employees as of December 2019
Customer base has almost doubled since 2010 to 8.7 million customers in December 2019 owing to the Bank’s strong brand recognition
Retail Banking
Corporate Banking
Small and Medium SizedEnterprises (“SMEs”) Business
Banking Group
Responsible for the Bank’s distribution network of 1,167 branches & BLUs and 2,822 ATMs & CAMsProvides private banking, preferred banking, personal banking and overseas Filipino banking services
Provides deposit and lending solutions to a broad range of multinationals, large and medium domesticconglomeratesProducts and services offered include cash management, electronic payments, trade finance, investmentbanking and other solutions
Other key segments
Focused on the needs of the small and medium sized enterprise segmentTailored credit processes and credit-scoring models offer quick and efficient capital solutions to SME clients
Asset management and trust business operated through BPI Asset Management and Trust CorporationInsurance services provided through BPLAC and BPI/MS1
Leasing and rental services through BPI Century Tokyo
1 BPLAC is the Bank’s life insurance joint venture with Philippine American Life and General Insurance Company. BPI/MS is the Bank’s non-life insurance joint venture with Mitsui Sumitomo Insurance Group (“Mitsui”)
Main Operating Business Segments
MicrofinanceProvides services to self-employed micro-entrepreneurs, advice from BanKopares & BanKomares Quick turnaround times and lower interest rates vs traditional money-lenders
BPI at a glance
Balance Sheet 2013 2018 5yr CAGR 2019 YoY
Total assets 1,195.4 2,085.2 11.8% 2,205.0 5.7%
Net loans 635.2 1,354.9 16.4% 1,475.3 8.9%
Deposits 988.6 1,585.7 9.9% 1,695.3 6.9%
CASA 685.2 1,139.9 10.7% 1,171.2 2.7%
Capital 104.5 248.5 18.9% 269.6 8.5%
Income Statement
Revenues 52.5 78.5 8.4% 94.3 20.1%
Net interest income 30.3 55.8 13.0% 65.9 18.1%
Non Interest Income 22.2 22.7 0.5% 28.4 25.2%
Operating expense 26.7 43.6 10.3% 50.1 14.8%
Pre-provision Operating Profit 25.8 34.9 6.2% 44.3 26.7%
Net Income 18.8 23.1 4.2% 28.8 24.8%
Key ratios
NIM 3.1% 3.1% 3.3%
Asset Yield 4.5% 4.5% 5.2%
Cost of Deposits 1.2% 1.4% 1.5%
Cost of Funds 1.5% 1.5% 2.0%
Cost to Assets 2.7% 2.3% 2.4%
Cost to Income 55.5% 55.5% 53.1%
ROE 18.1% 10.2% 11.0%
ROA 1.9% 1.2% 1.4%
CASA 69.3% 71.9% 69.1%
Loan-to-Deposit 64.3% 85.4% 87.0%
Credit Cost (in bps ) 49bps 40bps 43bps
NPL ratio 1.7% 1.9% 1.7%
NPL coverage ratio 108.7% 85.5% 102.1%
CAR 13.7% 16.1% 16.1%
CET1 13.0% 15.2% 15.2%
THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS. STRICTLY CONFIDENTIAL.
Bank Standalone
Rating
Extraordinary
Support Level
Operating
Environment Risk
Anchor
BBB- bbb-
SACP: Risk Position Adequate (0)
Senior Unsecured Baa2Support Rating
Floor
SACP: Funding &
Liquidity
Average and
Strong (0)
Moody's 2
Counterparty Risk
Rating
Bank Deposits
Counterparty Risk
Assessment
Foreign Currency:
Short-Term IDR
Support Rating
Outlook
Long-Term Issuer
Credit Rating
Short-Term Issuer
Credit Rating
SACP*
SACP: Business
Position
Capital
Intelligence 4
Stable***
bbb
BBB
S&P 1
Outlook
Financial Strength
Foreign Currency:
Long-Term IDR**
Stable
Fitch 3
Outlook
Core Financial
Strength
Long-Term
Foreign Currency
Baseline Credit
Assessment
Baa2/P-2
Baa1/P-2
Outlook
A3F3Short-Term
Foreign Currency
High
Stable
BBB+
A-2
bbb+
Strong (+1)
bbb-Adj. Baseline
Credit Assessmentbaa2
Local Currency:
Long-Term IDRBBB-
baa2
Baa1(cr)/P-2(cr)
Stable
-
BBB-
2
bbb-
Strong (+1)
SACP: Anchor
SACP: Capital &
Earnings
At par with Philippine Sovereign Rating (Moody’s, Capital Intelligence, and S&P)
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BBB ESG Rating
Sustainable development goals touched on by BPI:
/1 As of August 2019 /2 As of May 2019 /3 As of January 2019 /4 As of October 2019 /5 As of August 2019* Stand Alone Credit Profile (SACP)** Issuer Default Ratings*** Outlook for Long-term Foreign Currency Rating & Bank Standalone Rating
5
Credit and Sustainability Ratings
THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS. STRICTLY CONFIDENTIAL.28 BPI’s Green Bond Framework is aligned with leading industry practices and supports our long-term environmental and social commitments
We have developed a Green Finance Framework under which we intend to issue:
Green Bonds and/or Loans – proceeds allocated to selected Eligible Green Projects
The Framework has been established to continue our thrust to promote positive environmental and social practices in our core markets
PROJECT EVALUATION AND SELECTION
We will follow the guidelines below in evaluating and selecting the Eligible Green Projects:
Pre Qualification: Projects are identified, evaluated and nominated by BPI’s Sustainable Energy Finance and Specialized Lending Team(together “SEF/SLT”)
Inclusion in the Green Finance Portfolio: SEF/SLT Head / Vice Chairman of the Green Finance Committee (“GFC”) validates and signs off on the Eligible Green Projects list
Green Finance Committee: On a semi-annual basis, validate and approve historical enrolments, review monitoring and reporting of issued Green Bonds and deployment of net proceeds
BPI ensures that all loans included for allocation under the Green Finance Portfolio comply with national, local, and environmental laws at the time of issuance
REPORTING
We will provide annual progress reports to be reviewed and approved by the Green Finance Committee andSenior Management, covering:
A list of approved Eligible Green Projects, including amounts allocated; and
Remaining balance of unallocated proceeds
External auditor will be engaged to provide independent verification on our reporting and management of proceeds in accordance with this Framework
Impact Reporting will be completed where relevant and possible
USE OF PROCEEDS
Net proceeds will be allocated to Eligible Green Projects in the following categories:
Renewable Energy
Energy Efficiency
Sustainable Water & Wastewater Management
Pollution Prevention & Control
Green Buildings
Projects financed or refinanced may be at BPI or at any of the BPI Group entities
Net proceeds of any BPI Green Bond and/or Loan will not be used towards financing and/or refinancing of fossil fuel related assets and activities
2
4MANAGEMENT OF PROCEEDS
An amount equal to the proceeds will be allocated to finance designated Eligible Green Projects across the BPI Group
Internal systems in place governing:
Tracking of proceeds via a separate register
Policy for deployment of unallocated proceeds
Substitution of assets – an amount equal to the net proceeds will be allocated to projects that comply with the Eligibility Criteria, reallocating to replacement projects in the event that a previous project is sold, paid in full, or no longer eligible
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3
Green Finance Framework
THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS. STRICTLY CONFIDENTIAL.
Project Finance29
Corporate Bankingand Investment Banking Trade and Supply Chain Remittance
Equity Capital Markets Debt Capital Markets
Best Trade
Finance Bank
2018
Best Trade
Finance Bank
2018
Best Supply
Chain Bank
2018
“BPI Pamana Padala”,
Remittance Product and
Service of the Year Award
2018
Outstanding
PhilPaSS REMIT
Participant Award
2018
BPI recognized for its
Remittance Services
2018
Renewable Deal of the
Year, Asia Pacific
(Star Energy)
2017
Best Philippines
Capital Markets Deal
(AC Perpetual Bond)
2017
Best ECM House
Philippines
2018
Best Corporate and
Investment Bank
Philippines
2018
Best Corporate and
Investment Bank
Philippines
2017
Best Investment
Bank
Philippines
2018
Best Trade and Supply
Chain House
2018
Best FX Bank for
Corporates and FI
2019
Best Investment Bank
2019
11Best Bank for Cash
Management
Philippines2019
Awardee - Top 10
Innovations in Cash
Management: Corporate
Cash Deposit Machine
2019
Cash Management
Best Wealth
Management Provider
Philippines
2018
BPI recognized for its
Financial Initiatives for
OFW
2018
Awardee - Top 5
Corporate Securities
Market Maker
2018
Awardee - Top 5
PDDTS-PvP
Participant Award
2018
Best New Bond Award
2018
BPI received 2-arrow
recognition in ACGS
2018
Corporate Governance
Asset Management
BPI Foundation
“Best Bank CSR in the
Philippines”
“Best Corporate &
Investment Bank in the
Philippines”
2019
11
Risk Management
BSP Special Citation:
BPI – Prudential
Reporting Innovation
2018
House of the Year,
Philippines
Year 2018 & 2014
Best Bank
Philippines
2018 & 2017
Microfinance
Best Bank for
Microfinance
2019
As of December 31, 2019
2019 Distinctions
ASEAN Risk Champion
2019
THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS. STRICTLY CONFIDENTIAL.
For your comments and queries contact us via:
investorrelations@bpi.com.ph
Tel: (632) 8246 5862
DISCLAIMER: This presentation has been prepared by the Bank of the Philippine Islands (“BPI” or the “Company”) solely forinformational purposes. All contents hereof are the sole and exclusive property of BPI. Nothing in this presentation shall beconsidered a solicitation, offer, advice or recommendation to investors or potential investors in relation to holding, purchasing orselling securities or other financial products or instruments. In all cases, interested parties should conduct their own investigationand analysis of the Company and the data set forth in this presentation. BPI makes no representation or warranty as to theaccuracy or completeness of information in this presentation and shall not have any liability for any representations (expressed orimplied) regarding information contained in, or for any inaccuracies or errors in, or omissions from, this presentation.This presentation may contain forward looking statements including statements regarding the Company’s intent, belief or currentexpectations with respect to BPI’s [businesses and operations, market conditions, results of operation and financial condition,capital adequacy, specific provisions and risk management practices]. Readers are cautioned not to place undue reliance on theseforward looking statements. BPI does not undertake any obligation to publicly release the result of occurrence of unanticipatedevents. While due care has been used in the preparation of forecast information, actual results may vary in a materially positive ornegative manner. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside BPI’s control.
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