Date post: | 15-May-2018 |
Category: |
Documents |
Upload: | hoangtuyen |
View: | 215 times |
Download: | 0 times |
CHINA BANKING CORPORATION (CHIB)Investor PresentationSM Group Corporate Day /Macquarie Securities
Healthier and more inclusive GDP growth
Sound macroeconomic fundamentals
Improved governance and competitive indicators
Prudent monetary policy
Strong external position
Sound and stable banking system
IT’S MORE FUN TO INVEST IN THE PHILIPPINES!
The Economic Backdrop
Your Success Is Our Business
CHINA BANK MILESTONES – 92 Years
1920‐1939•1920•Established by Chinese immigrants as the 1st
privately owned local commercial bank in the Phils.
1940‐1959•1947•CHIB listed on the local stock exchange
1960‐1979•1969•Became the 1st bank in Southeast Asia to process deposit accounts online
1980‐1999•1988•Joined 7 other banks in setting up BancNet, the country’s largest ATM network
•1991•Acquired unibanklicense
•1996•Accessed offshore capital markets by issuing US$50 MN FRCD
2000‐2012•2006•Start of rapid branch expansion; Completed its first international US$53 MN secondary share offering
•2007•Signed a bancassuranceJV with Manulife; acquired Manila Banking Corporation with 75 branches
2000‐2012•2008•Launched China Bank Savings subsidiary
•2009•Cited by Stern Stewart as one of the top 100 ASEAN companies in terms of delivering shareholder value for 2002-2008
2000‐2012•2011•2x Gold awardee (95%) in corporate governance awarded by ICD
•2012•Breached the 300-mark in branch network; Ten to one Stock split; Bell Awardee for Corporate Governance
Your Success Is Our Business
Competitive Landscape (Dec 2012)
Your Success Is Our Business
Competitive Posture Amt Amt Amt Amt
(P BN) (P BN) (P BN) (P BN)
TOTAL 7,733 100.0 5,481 100.0 3,738 100.0 861 100.0
BDO 1,250 16.2 930 17.0 738 19.7 156 18.1 763MBT 1,038 13.4 739 13.5 509 13.6 122 14.1 828BPI 976 12.6 804 14.7 558 14.9 93 10.8 820PNB/Allied 516 6.7 388 7.1 234 6.3 58 6.7 653RCBC 369 4.8 249 4.5 178 4.8 42 4.9 418CHIB 322 4.2 272 5.0 187 5.0 39 4.5 316UBP 275 3.6 190 3.5 117 3.1 45 5.2 186SECB 259 3.4 143 2.6 130 3.5 37 4.3 208Gov't 1,046 13.5 721 13.2 388 10.4 118 13.7 Foreign Banks 977 12.6 505 9.2 415 11.1 56 6.5 Local Banks 706 9.1 541 9.9 284 7.6 97 11.2
Net Loans CapitalBranches
Mkt Share (%)
Mkt Share (%)
Mkt Share (%)
Mkt Share (%)
Big Banks
Peer Banks
Others
Institution
Assets Deposits
Key Investment Merits
Strong balance sheet and asset quality
Solid capital base
Clear strategy for growth and expansion
Focused management, effective governance
Sustained delivery of superior value to shareholders
Sustained profitability
Your Success Is Our Business
Net Income, ROE
Your Success Is Our Business
ROE, ROA
Your Success Is Our Business
Cost to Income
Your Success Is Our Business
Branch network more than doubledfrom 148 in 2006 to 316 in 2012
Revenue Diversification Profile
Your Success Is Our Business
14.5 14.1 14.5
17.5 17.916.9
19.3In BN
Key Investment Merits
Sustained profitability
Solid capital base
Clear strategy for growth and expansion
Focused management, effective governance
Sustained delivery of superior value to shareholders
Strong balance sheet and asset quality
Your Success Is Our Business
Assets
Your Success Is Our Business
Loan Portfolio - well collateralized
Your Success Is Our Business
Excludes UDSCL
Much room for loans growth…
Your Success Is Our Business
Gross Loans to Deposit Ratio
Improving asset quality, more than adequate reserve cover
Your Success Is Our Business
*Industry LLR Ratio as of October 2012
Deposit, Funding Mix
Your Success Is Our Business
122140
174193
213 216
272
Sustained growth in low-cost deposits
Your Success Is Our Business
Key Investment Merits
Sustained profitability
Strong balance sheet and asset quality
Clear strategy for growth and expansion
Focused management, effective governance
Sustained delivery of superior value to shareholders
Solid capital base
Your Success Is Our Business
From excess capital to efficient use of capital - Basel II 2007, acquired Manila Bank 2007, expansion
Your Success Is Our Business
21 22
24 27
31
36
41
Your Success Is Our Business
Capital & loss reserves well above stress test tresholds
Your Success Is Our Business
Maintained top ratings from credit rating agencies
Standard and Poor's
Capital Intelligence
BankNational Rating
Individual Rating
Bank Financial Strength
Rating (BSFR)
Foreign Currency
Short-term Deposit Rating
BPI AAA C C- Not-PrimeDBP AA+ C/DBDO C/D D Not-PrimeCHIB AA- C/D BBB-SECB AA- DRCBC D D- Not-PrimeABC D E+ Not-PrimeUBP A+ DLBP AA C/D(from D)
MBT C/D (from D) D Not-PrimeBB Positive (from BB-)
BB Positive (from BB-)
PNB D/E E+ Not-PrimeBB Positive (from BB-)
BB Positive (from BB-)
PhilippinesBB+ (from
BB)BB+ (from
BB)Sources: Business World Online, PhilStar.com, The Wall Street Journal Digital Network, Bloomberg
BB+ (from BB) Ba1 (from Ba2)
Moody'sFitch Ratings
Key Investment Merits
Sustained profitability
Focused management, effective governance
Sustained delivery of superior value to shareholders
Your Success Is Our Business
Strong balance sheet and asset quality
Solid capital base
Clear strategy for growth and expansion
2222Your Success Is Our Business
Branches, ATM expansion on track…
188216
255269
293316
383
415440
3-Year Plan
Your Success Is Our Business
Leverage bigger branch footprint to distribute products and services
Metro Manila ‐ 50%
Mindanao ‐ 10%
Luzon ‐ 26%
Visayas ‐ 14%
New branches – 24% of accounts
Your Success Is Our Business
148
180
214
241253
268283
No. of accts in Existing branches
No. of accts in New branches
Existing branches New branches
598,193
676,094
742,784771,759
818,582872,564
949,699
No. of A
ccou
nts N
o. of Branches
2525Your Success Is Our Business
Key challenges – Cost drag of new branches-- More than 85% of Opex covered
Operating Exp Adjusted Net FY 2012 Income / (Loss)
Opened in 2006 (7) (70.89) 23.40 Opened in 2007 (12) (115.20) (12.95) Opened in 2008 (34) (311.54) (49.50) Opened in 2009 (27) (256.35) 6.65 Opened in 2010 (12) (96.64) (54.49) Opened in 2011 (15) (110.39) (91.64) Opened in 2012 (15) (34.03) (29.33) Converted Manila Bank (20) (195.60) 30.08 TOTAL (142) (1,190.64) (177.76)
(P MN)
Your Success Is Our Business
Key challenges –Margin squeeze due to system liquidity
Spread between average lending rates and fixed deposit rates
Your Success Is Our Business
156
176209
234
257 262
324
Asset mix towards more loans, less treasury
Your Success Is Our Business
194224
276
333
Faster growth in higher margin segments – consumer, commercial
CAGR= 20%(2012-2015)
56%
24%
8%
150
113
Consumer
Commercial
Corporate
Your Success Is Our Business
Maximize synergy with
existing “new” businesses
Launch “new” businesses
•Investment Banking•Bancassurance JV
with Manulife•Private Banking •Insurance•Remittance
•Credit/Debit Cards
•FOREX Business
•Derivatives
Diversify Revenue streams
Your Success Is Our Business
China Bank Savings - to become a major bottomlinecontributor by 2014
Expand distribution network
•Savings Bank•Acquisition opportunities
• Unity Bank, rural bank from Central Luzon•Full & mini branches
•Mini branch in SaveMore (SM) supermarkets•Fastest growth in branch network in the
Thrift Banking Industry
Your Success Is Our Business
New Core Banking System
New ATM Switch
Credit Card/ Debit Card System
Roll our new ALM System (Sungard)
Rolled out Reuters, Kondor + Treasury System
Robust Platforms,
Cost Effective
Processes
Clear strategy for growth and expansion
Key Investment Merits
Sustained profitability
Solid capital base
Clear strategy for growth and expansion
Sustained delivery of superior value to shareholders
Your Success Is Our Business
Strong balance sheet and asset quality
Focused management, effective governance
Focused management, effective governance
Your Success Is Our Business
Respected Management
Management team is highly respected in the banking industry especially among Chinese Filipino businessmen
Hans T. Sy – Chairman since 2011Gilbert U. Dee – Vice ChairmanPeter S. Dee – President & CEORicardo R. Chua – SEVP & COO
Mgt team strengthened by recent key executives hiringWilliam Whang – Head of Institutional BankingVirgilio Chua – Head of Investment Banking
Focused management, effective governance
Your Success Is Our Business
Strong Shareholder Support
SM SynergyBank’ branches/ATMS in mallsSavings bank in Savemore stores SM suppliers, merchants,
contractors
Foreign ownership of Dec 2012 24% share
Excellence in Governance - awards and citations
Your Success Is Our Business
2011 – Gold (score of 95% above)
2010 – Gold (score of 95% above)
2009 –Silver (score of 90%)
Focused management, effective governance
Your Success Is Our Business
Excellence in Governance - awards and citations
2012: Bell Award for Excellence in Corporate Governance from the Philippine Stock Exchange (PSE)
•The only bank among the five publicly-listed companies awarded, from among 255 publicly-listed companies
Focused management, effective governance
Key Investment Merits
Sustained profitability
Solid capital base
Clear strategy for growth and expansion
Focused management, effective governance
Your Success Is Our Business
Strong balance sheet and asset quality
Sustained delivery of superior value to shareholders
Sustained delivery of superior value to shareholders
Your Success Is Our Business
10:1 stock split in September 2012BN
P 42
P 51
P 35 P 36
P 46 P 47
P 71
Sustained delivery of superior value to shareholders
Your Success Is Our Business
Sustained delivery of superior value to shareholders
Your Success Is Our Business
Your Success Is Our Business
During the stockholders meeting last May 2012, the Bank declared cash dividend of P12/share and stock dividend of P10/share
Dividend History
Sustained delivery of superior value to shareholders
2006 2007 2008 2009 2010 2011 2012Market Value Per Share (P) 680.00 660.00 395.00 370.00 434.00 398.00 54.60
Adjusted for stock split* 68.00 66.00 39.50 37.00 43.40 39.80 54.60 Cash Dividends Paid (P MN) 1,480 1,542 1,542 1,064 1,170 1,287 1,416Cash Dividends Per Share (P) 30 25 20 12 12 12 12Stock Dividends Paid (P MN) 1,233 1,542 1,156 887 975 1,073 1,180Stock Dividends Per Share (%) 25 25 15 10 10 10 10EPS (P)
Adjusted for stock split* 2.73 2.84 2.25 3.16 3.86 3.86 3.89 BVPS (P)
Adjusted for stock split* 19.25 20.50 19.88 23.40 27.30 30.25 32.58 P/E Ratio Adjusted for stock split* 24.94 23.26 17.59 11.71 11.26 10.31 14.04 Dividend Yield 4.41% 3.79% 5.06% 3.24% 2.76% 3.02% 2.20%Price to Book 3.53 3.22 1.99 1.58 1.59 1.32 1.68 * Restated based on the new par value of P10 per share (previously P100) which took effect on Sept 6, 2012
Key Investment Merits
Sustained profitability
Strong balance sheet and asset quality
Clear strategy for growth and expansion
Focused management, effective governance
Sustained delivery of superior value to shareholders
Your Success Is Our Business
Solid capital base
Your Success Is Our Business
Thank you!
Your Success Is Our Business