BPI Investor Update · RCBC 5 HSBC 6 Citi 6 13.6 ... First Metro 5 PNB 6 RCBC 7 19.2 18.0 10.3 ......

CONFIDENTIAL

BPI Investor UpdateStrength and Quality in Earnings

As of September 30, 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 5.31% weight

Stock Price P90.50 per share

BV per share P42.05

P-B Ratio 2.15x

P-E Ratio 16.53x

Dividends P1.80 per share

Issued Shares 3.937 bn

Market Cap P356.302 bn

Shareholders

BPI Investor Update: Strength and Quality in Earnings

As of November 28, 2016

3

* Roman Catholic Archdiocese of Manila

BPI: 165 Years in the Philippines

Branches ATMs/CAMs

Expansive reach in both traditional and electronic channels

7.8 million customers

826 branches

3,090 ATMs & CAMs

15,681 employees

BPI Investor Update: Strength and Quality in Earnings 4

Electronic ChannelsSignificant leadership in technology-based banking


+10.5%

+15.9%

+13.5%

-

Express Mobile

Express Phone+1.8%

No. of Clients 2014 2015 Sep 2016

Express Online 1,930,609 2,273,882 2,512,989

Express Mobile 1,261,287 1,683,850 1,951,842

Express Phone 870,576 785,876 799,919

ExpressLink 21,611 25,677 29,138

* Philippine Statistics Office – Estimated OFW, 2015

ITSC MeetingBPI Investor Update: Strength and Quality in Earnings

A Leader Among Philippine Banks in OF Remittances

Remittance 2013 2014 May 2015 CAGR

BSP Vol (USD bn) 24.63 25.77 20.03 5%

BPI

Vol (USD bn) 6.98 6.97 5.14 -2%

Share (%) 28% 27% 26%

Total OFWs* BPI Tie-Ups2.4 million 138

OFW Diaspora & Global BPI Tie-Ups

Canada

$ 425 mn 4Europe

$ 105 mn 5 Asia$ 3,268 mn 3

Middle East$ 4,937 mn 2

U.S.A

$ 6,596 mn 1

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

6

Excellence in Equity Capital Markets


Underwriter Nov 2016 Rank Mkt Share (%) Issues

UBS 1 21.4 3

JPMorgan 2

BPI Capital Corp 3

BDO Capital 4

5RCBC

HSBC 6

6Citi

13.6

12.7

9.3

7.7

5.5

5.5

4

6

4

1

1

2

Excellence in Debt Capital Markets


Underwriter Nov 2016 Rank Mkt Share (%) Issues

China Bank 1 20.0 9

BPI Capital 2

BDO Capital 3

ING Group 4

5First Metro

PNB 6

7RCBC

19.2

18.0

10.3

10.0

8.0

7.0

9

1

4

5

6

10

Recent Distinctions


Oct 2015 Best Overall Domestic Cash Management Services AwardsAsia Money

Best Mobile Banking and Best Retail Bank in the PhilippinesThe Asian Banker

March 2016

Equity House of the Year Investment House of the YearInvestment House Association of the Philippines

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

Sep 2016 Best SME Bank Alpha Southeast Asia

Picture

Joseph Gotuaco

EVP & CFO

BPI Management Team

Picture

NatividadAlejoEVP

Picture

Daniel Montecillo

EVP

Picture

Antonio Paner

EVP & Treasurer

Simon Paterno

EVP

Picture

Cezar P. ConsingPresident & CEO

Retail Clients Enterprise Services

Picture

RamonJocson

EVP

Strategy & Development

Financial Products &

Services

Corporate Clients

Global Markets


September 2016 Performance HighlightsSustained growth in earnings, higher trading income realized

11

in P Bn 2015 Sep 2016 Sep YoY

Balance Sheet

Assets 1,410.1 1,590.0 12.8%

Net Loans 780.1 931.1 19.4%

Deposits 1,183.4 1,320.2 11.6%

CASA 857.6 992.9 15.8%

Capital 150.4 165.6 10.1%

Income Statement

Net Revenues 44.1 50.4 14.3%

Net Int Income 28.7 31.3 9.1%

Non-Int Income 15.4 19.1 23.9%

Opex 22.9 25.6 11.7%

Provisions 3.3 4.0 20.1%

Net Income 13.8 17.4 25.6%

Comp Income 13.3 18.7 40.0%


September 2016 Performance HighlightsStrong Balance Sheet, adequately capitalized for growth

12

2015 Sep 2016 Sep YoY

Balance Sheet

LDR 65.9% 70.5% 4.6%

CASA Ratio 72.5% 75.2% 2.7%

Profitability

CIR 51.9% 50.7% -1.2%

ROE 12.6% 14.7% 2.1%

ROA 1.3% 1.5% 0.2%

Asset Quality

Gross 90-Day NPL 1.8% 1.6% -0.2%

NPL Cover 107.4% 112.3% 4.9%

Capital

CAR 14.9% 14.2% -0.7%

CET1 14.0% 13.3% -0.7%


13.3

18.7

2015 Sep 2016 Sep

13.8

17.4

2015 Sep 2016 Sep

Strong Earnings Quality in Sept 2016 Net Income +25.6%, Comprehensive Income +40.0% YoY

13

Net IncomeP bn

Comprehensive IncomeP bn

25.6%

YoY Growth

40.0%

YoY Growth


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

14

RevenuesP bn

Revenue Mix

Net Interest Income Non-Interest Income


9.1%

23.9%

YoY Growth

14.3%

28.7 31.3

15.4 19.1

44.1

50.4

2015 Sep 2016 Sep

65.0% 62.0%

35.0% 38.0%

2015 Sep 2016 Sep

Non-Interest Income


Securities & FX trading increase significantly: +P4.6 bn (206%) vs last year

Gross non-interest income up by +P3.7 bn (22.4%) vs last year– Transactional fees– Bancassurance– Corporate Fees

Breakdown of Non-Interest IncomeP bn

1.3%

-27.84%

1 Non-Interest Income at gross

12.1%

-6.6%

206%

YoY Growth

22.4%

86.4% 65.9%Fees

13.6% 34.1%Sec&FX

14.28 13.33

2.256.89

16.52

20.22

2015 Sep 2016 Sep

780.1

931.1872.9

2015 2016

Loan Book Has Both Growth and QualityStrong trend likely to continue until 2016 H2

16

Net LoansP bn

Asset Quality

NPL Cover Gross 90-D NPL


6.7%

Growth

Year-end Sep

19.4%

107.4

112.3

1.8%

1.6%

2015 Sep 2016 Sep

110.6 117.5

45.553.3

33.938.1

2015 Sep 2016 Sep

504.3611.9

86.4

82.2

2015 Sep 2016 Sep

YoY Growth

Corporates at +18% YoY; Retail at +10%


Corporate Loan BalancesP bn

Retail Loan BalancesP bn

85.4% 88.2%Corp%

14.6% 11.8%SME%

58.2% 56.2%Housing%

24.0% 26.0%Auto%

17.8% 18.2%Cards%

17.5%

-4.9%

21.3%

590.7

694.1

6.3%

17.3%

12.4%

10.0%

YoY Growth

190.0208.9

1 Cards inclusive of Personal Loans

72.5%

75.2%

65.9%

70.5%

2015 Sep 2016 Sep

1,183.4 1,320.2

857.6 992.9

2015 Sep 2016 Sep

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

18

DepositsP bn

CASA Ratio, LDR

11.6%

15.8%

YoY Growth

Total Deposits CASA Deposits CASA Ratio LDR


2,720.7 2,694.4

2015 Sep 2016 Sep

Growth in AUM


Investment AUMP bn

21.7% 20.1%Share

Asset Management FeesP mnYoY Growth

7.7%

-15.8%

YoY Growth

-1.0%

538.3580.0

2015 Sep 2016 Sep

133 149 97 111

8941,050

716860

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

Qualifying Capital Risk Weighted Assets CAR % CET1 %

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


CAR % CET1 %

14.014.9 14.2

13.313.512.6

12.912.0

6.407.08 7.08

1.78 0.00

8.180

3.54

2012 2013 2014 2015 2016 H1

Special

Regular

1.80 1.80 1.80

0.9

0.50 0.00

2.300.00

0

2012 2013 2014 2015 2016 H1

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


50%

34%39% 39%

19%

2012 2013 2014 2015 2016 H1

Credit RatingsMoody’s1 Fitch Ratings2 Capital

Intelligence3

Bank Financial Strength Rating

- - BBB

LT Local Currency Rating

Baa2/Prime-2 BBB- -

LT Foreign Currency Rating

Baa2/Prime-2 BBB- BBB-

Outlook Stable Stable Stable

LT Foreign -Philippines

Baa2 BBB- -

/1 As of May 2016; /2 As of August 2016; /3 As of December 2015


CONFIDENTIAL

Thank you.

As of September 30, 2016

BPI Investor UpdateStrength and Quality in Earnings

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