BAIPHIL is honored to have Mayor Rodrigo R. Duterte of Davao City as Guest Speaker at its General Membership Meeting on 11 August 2015, sharing his views on Good Governance in Government. Going by the nicknames Rody or Digong, Mayor Duterte is a lawyer and a well-known politician. He took up his Bachelor of Arts Degree from the Lyceum University of the Philippines and obtained a law degree from San Beda College. Mayor Duterte started his political career in 1986 when he was appointed OIC Vice Mayor of Davao City right after the People Power Revolution. He ran for mayor and won, serving until 1998. He became Congressman of the First District of Davao City in 2001. After his term in the House, he ran once again as mayor and continues to be re-elected. During his first term as mayor, he set a precedent by designating deputy mayors who represented the Lumads and Moros in the city government, an initiative which was later copied in other parts of the country. Davao City under Duterte won the National Literacy Hall of Fame Award for being a three-time first place winner in the Outstanding Local Government Unit Highly Urbanized City category. Through the support of Mayor Duterte, the City Council amended various ordinances which promoted public safety, order and discipline for Davaoeños. Through his leadership, Davao City has one of the lowest crime rate in the country. Mayor Duterte led rescue and medical teams to Tacloban to give aid to the victims of Typhoon Yolanda and provided financial assistance to Bohol and Cebu for the earthquake victims. *Mayor Duterte’s speech was delivered by his Political Adviser and Spokesperson, Angelito T. Banayo.

This is an auspicious time to be involved in BAIPHIL. Your term covering fiscal

year July 2015-June 2016 coincides with BAIPHIL’s 75th anniversary! By any measure, this is a significant milestone. Congratulations BAIPHIL! And congratulations to your officers and members, past and present! By tradition, diamonds symbolize 75th anniversaries. This is because diamonds represent a highly prized quality -- which is, enduring fidelity. Faithfulness. Commitment. I am pleased to know therefore, that the theme you selected for this year’s Induction of Officers is -- “Building Capacity for Financial Inclusion and Integration.” The industry is in the midst of so many facets of change that the concept of “capacity building” takes on new dimensions. It is no longer enough that you position yourself as a trainor for your peers. BAIPHIL itself must navigate through a fast-evolving market landscape, appreciate and relate all the strands of change, if you are to become an effective venue for continuing education. Training and education cannot be just about holding lectures and workshops. It is more akin to telling a good story with different chapters. In financial inclusion, we see the dimension of access and calibration so that the financial system itself is responsive to the diverse needs of differentiated stakeholders. How much more appropriate can this be than in an archipelago such as the Philippines. This literally forces us to think out of the box, that comfort zone that we refer to as “traditional banking”. In financial integration, we bring together the collective aspirations of a regional community. This materially changes the landscape but more importantly, it does so at the same time that global best practices are themselves being re-set to a higher and more prescriptive bar. This forces us to think within the box, examining what we have, how we wish to position ourselves in this sea of change and what we need to do to remain competitively in the service of our respective constituents. In each of these two facets, we have a lot that needs to be covered. Taken together, the strategic and tactical implications are significant. At the level of each bank, choices must be made today so that you can maximize competitive advantages that you expect will be your strength in the future. At the level of the industry, this requires an unwavering commitment to continuing education, to appreciate nuances without losing sight of the overall policy agenda of institutionalizing change that can strengthen the system and its institutions. Indeed both financial inclusion and financial integration pose challenges as well as vast opportunities. To dimension what exactly lies ahead of us, perhaps we need to step back a bit. Let me share some indicative figures that came out of our national baseline survey on financial inclusion done early this year. I am sure you will find these useful in crafting your way forward:

• Only 4 out of 10 Filipinos save. Of those who save, roughly 30% save in banks

while nearly 70% keep their money at home.

• 6 out of 10 adults with bank accounts indicated that the bank’s reputation is their number one consideration in opening a deposit account. Around 50% of respondents mentioned interest rates as another major consideration, followed by minimum maintaining balance ( for info only - 45.9%), proximity of the banking office (39.8%) and the way the bank employees treat their clients (34.8%).

• 47% of Filipinos borrow money, of whom 72% borrow from family, friends

and informal lenders. Banks as source of borrowing stood at only 4.4%, lower than lending/financing companies (12%), cooperatives (10.5%), microfinance NGOs (9.9%) and government entities (6.1%).

• The main purpose for borrowing money is to buy food (59.5%), school related expenses (38%) and to finance emergencies (32.7%).

• The primary considerations in borrowing money are interest rates (57.5%), loan amount (41.7%), period to pay for the loans (35.0%), ease of loan application (33.1), reputation of the credit institution (24.5%), amortization (14.9%), collateral (14.3%), fees and other charges (11.4%), and processing time (11.0%).

• More than 50% of adults who have transacted with banks and ATMs are just somewhat satisfied with their transactions; and

• More than 85% of respondents indicate that they want to access financial services from formal institutions.

Ladies and gentlemen of the banking community, these are some of the gaps we need to address in our financial inclusion program. The survey also gave us insights into what Filipinos look for in financial service providers. We can therefore move forward with our financial inclusion programs with clearer and more specific objectives. Actually, many sectors – in government and in the private sector - are joining hands to advance the cause of financial inclusion. For your information, 13 government agencies, including the BSP, launched last July 1 at the PICC, the National Strategy for Financial Inclusion or NSFI. The agencies who crafted the NSFI envision a financial system that is accessible and responsive to the need for various financial services, including credit, savings, remittances and payments, insurance and investments. The objective in implementing the NSFI is to support broad based and inclusive growth. The Strategy recognizes the important role of the private sector in 1) recognizing the commercial potential of the vast unserved market and 2) developing innovative solutions to viably cater to these markets that are replete with opportunities.

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The I in BIG stands for Improve. I ask BAIPHIL to help improve our banks’ ability to develop responsive products that are suited to the needs of the markets they want to serve. This will entail systematic market research, as well as an innovative mindset. The G in BIG is for Guide. Guide your banks in navigating through this dynamic and constantly shifting operating landscape. Banks will need to keep abreast of developments and adjust to the changing demands of the market. Ladies and gentlemen. This is my BIG challenge to BAIPHIL. With BIG in place, I believe our banks will be able to drive and optimize the benefits and opportunities that financial inclusion and integration stand to generate. Finally, I thank BAIPHIL once again for its continuing support to the BSP in promoting good money habits among teachers, parents of our schoolchildren and other adults from the marginalized sector, through your personal finance management lectures. We have been receiving good feedback for this BSP-BAIPHIL program. Therefore, let us commit to continue working together, let us be faithful to what we set out to do -- big or small, and then we can look forward to BIGger and better things that are yet to come. For your information, this is the 11th time I have attended BAIPHIL’s induction ceremony. I have been faithful and consistent to BAIPHIL. The BSP has been faithful and consistent to BAIPHIL. Therefore, insofar as staying true to your theme of “Building Capacity for Financial Inclusion and Integration”, we, at the BSP expect nothing less than enduring commitment from BAIPHIL. Ladies and gentlemen. You have it in you to help unlock the growth potential in our people, in our economy, and in our country, if you continue to pursue financial inclusion and integration with unwavering dedication. If we succeed, then the market for banking services expands, deepens and strengthens the Philippine banking industry in the process, even as we help improve lives, liberate millions of Filipinos from poverty, and bring prosperity to Filipino homes. Let this be our goal and our enduring legacy. I look forward therefore to BAIPHIL remaining faithful and steadfast, like a diamond, in its pursuit of capacity building for financial inclusion and integration. Thank you for your kind attention. Mabuhay ang ating mahal na bansang Pilipinas! Mabuhay po tayong lahat! Maraming salamat!

Let me now tackle the matter of financial integration. Similar to financial inclusion, integration also poses challenges and opportunities for our banks. Under the ASEAN Banking Integration Framework - which is a key element of the ASEAN financial integration - Qualified ASEAN Banks or QABs will be awarded equal treatment as domestic banks in the host country. This may lead to increased competition in the financial system as QABs may venture into markets which our banks have been comfortably serving in the past. It is important to note, however, that this arrangement for QABs is made under the principle of reciprocity. Our banks will also have the opportunity to expand to other countries in the region and find new markets. Added competition will challenge banks to further improve their operations and venture to new markets. In addition, the reduction of barriers and cost to trade as a result of integration will catalyse economic activities which could be funded by our banks. For instance, our small and medium enterprises will have the opportunity to be part of the regional value chains of technology giants, leading car manufacturers, and garment producers, among others. With the right interventions and appropriate financing, we can deepen this regional participation for our traditionally domestic-oriented SMEs that are unable to take advantage of available overseas markets. At this point, I want to share the story of a small food producer who was able to grow her home-based business with the help of a microfinance loan. Her business was able to put food on their family’s table, send her children to school and improve the overall quality of life of their family. We met at an awards program for microentrepreneurs. What I distinctly recall is that a year after she won the award, she was given the opportunity to export her goods. Sadly, she was unable to meet the order due to lack of capacity and additional financing from her microfinance institution. In short, she lost the opportunity to expand her business, to earn more for her family, to generate more employment and to add to her community’s income. Ladies and gentlemen, this is a poignant story of a success half-realized. On one hand, we saw how access to credit made such a huge positive impact on the life of a microentrepreneur from the marginalized sector. On the other, we saw how capacity limitations and the inability to access additional financing prevented her from realizing the full potential of offshore markets for her products. Multiply this story many times over and you can imagine the countless missed opportunities for improving the lives of many more Filipinos. Sayang. As the training arm of the banking industry, BAIPHIL’s role is crucial in building the capacity of our banks to transform into opportunities, the challenges from financial inclusion and integration. Toward this end, I would like to share my three-fold challenge to BAIPHIL, and we have another acronym B.I.G. B is for Build. Build our banks’ capacity so that they can compete under regional banking standards. What comes to mind are corporate governance, appropriate risk management and internal controls, commensurate capital structure, and clear business plans with track record, among others. The regulations of the BSP support this objective, particularly our recent landmark issuances and those in the pipeline, such as the Credit Risk Management Framework, the Supervisory Enforcement Policies, and the Operational Risk Management. They provide fundamental principles that empower banks to determine their business model, the markets they want to serve, the products they want to develop and the risks they are willing to take and manage.

The Honorable BSP Governor and Chairman of the Monetary Board Amando M.

Tetangco Jr., BSP Monetary Board Members Valentin A. Araneta and Armando C. Suratos, distinguished guests from our member banks and partner institutions, fellow BAIPHIL members, friends, I am honored and humbled to stand before you as the 70th president of the Bankers Institute of the Philippines. My warmest thanks to all of you for joining us in this wonderful occasion, and to the many people who have worked so hard to make this day come true. For today is not a product of a couple of weeks of preparations; not even, of a couple of months. We are here, today, because of 74 years of dedication and discipline, commitment and camaraderie of men and women before me, who have built BAIPHIL into the acknowledged training and education arm of the Philippine banking industry. My friends, this fiscal year is BAIPHIL’s 75th, our diamond jubilee. BAIPHIL is the oldest surviving association of banks and bankers in the country. And I was pleasantly surprised to learn that among our contemporaries are Asia’s first airlines, the Philippine Airlines, the candy M&Ms, the movie Citizen Kane, the softdrink Fanta, and the superheroes Wonder Woman and Captain America. So the next time, you encounter any of these icons who have all formed part of our culture and collective consciousness, do remember BAIPHIL, and consider how it, too, has become an integral part of our professional, if not personal, lives. But today is not the occasion for looking back; we’ll commemorate our history at a more appropriate time. Today, let’s talk of how we move forward. The year’s theme is “Building Capacity Towards Financial Inclusion and Integration”. It situates BAIPHIL’s capacity building mission in the light of contemporary developments affecting the financial sector, forever changing the banking landscape. Financial integration is expected to heighten competitive pressure as it contributes to economic progress. However, for growth to be meaningful, for it to ensure a stable and resilient financial system, it has to be broad based and inclusive. Our theme, then, is a call to BAIPHIL and its members to reach out and equip others, as we equip ourselves, with the knowledge, skills and competencies, to not only meet the challenges, but reap the rewards, ahead. The newly inducted leadership team, who officially began on July 1 but was working as early as May, sees this fiscal year as a transformational year for BAIPHIL as we implement measures to ensure the organization continues to meet the demands of the banking sector.

BUILD. BAIPHIL’s mission is to support the banking industry in enhancing productivity and keeping abreast with relevant developments through continuing education, research and information exchange. A priority to achieving this mission is the establishment of an appropriate office for BAIPHIL that will house its Secretariat and serve as a Training Center. This has been a long-time dream, nurtured for many years. We expect to announce progress on this soon.

In terms of product offerings, we aim to develop certification courses and holistic development programs to further elevate the professional standards in the industry. This will take a bit more time to realize, and our role is to make sure the proper groundwork is done.

ENGAGE. Stakeholder engagement is a critical component to BAIPHIL’s enduring relevance and the success of its plans and projects. Membership participation will be reinforced through the regular information exchange and fellowship programs of the Institute. The monthly General Membership Meetings that we have will be reconfigured to allow more time for interaction, yet continue to serve as a forum to develop members into well-informed and well-rounded bankers. In this regard, I am pleased to report that Davao City Mayor Rodrigo Duterte, among others, has accepted our invitation to be a guest speaker in an upcoming GMM. Watch out for that. BAIPHIL will not be the leading training institute for bankers without our valued Resource Speakers -men and women who generously share their knowledge and experience. At this point, may I acknowledge some of them and request them to stand up and be recognized? I know that we don’t compensate you enough, sometimes not at all, but I hope you realize that you are much appreciated by the industry. Meanwhile, collaboration with our other partners, including the Bangko Sentral ng Pilipinas, the Bankers Association of the Philippines, the Philippine Association of Collegiate Schools of Business and the banking public, will be increased through involvement in course development and financial inclusion and literacy projects. We have much to discuss on how we can all work together and promote financial inclusion.

STRENGTHEN. We will continue to strengthen BAIPHIL’s foundations with the enhancement of procedures and infrastructure. We’d like to make enrolment in our courses easier, and collection less of a hassle. We’d like to improve our financial and management reporting systems. We’d like to enable our participants to track their training history and fulfill their training needs. We also aim to improve on BAIPHIL’s finances to ensure the sustainability of our programs. So heads up, we will increase our training fees, only by P500, to cover increase in costs. But rest assured, our trainings are still premium value for your money, and cost way below those charged by other providers. We would also like to improve on the Institute’s visibility & accessibility. You may have already noticed the web version of our popular BAIPHIL Market Watch or BMW. Expect more upgrades to our interfaces.

TRANSFORM. BAIPHIL’s long term objective is to be the training institute of choice for professional bankers in the Philippines and Asia Pacific. A strategic decision the new Board agreed on pursuant to this goal is to hire a full time Training Head. Some of you may be surprised to learn that BAIPHIL doesn’t have a full time Training Head yet is able to churn more than 70 runs in a year. That, my friends, is driven purely by the passion and dedication of our members and Secretariat.

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But if we are to move to the next level, if we are to introduce more value-adding offerings, we need training professionals to supplement our Secretariat and volunteer members. In the same spirit, the Leadership Team restructured the Education and Training platform of BAIPHIL with the creation of Course Committees, whose chairpersons were earlier inducted. The new structure would allow a more focused approach in the development of training modules, as well as empower more of BAIPHIL’s subject matter experts to get involved in our advocacy. Finally, amendments to the Articles of Incorporation and By-Laws of the organization are being considered to promote stability and long term growth. As you can see, this is going to be an exciting year. This is our diamond jubilee, but the BEST is yet to come. On behalf of BAIPHIL and its leadership team, may I invite all of you, to join us in this journey. Join us in our advocacy, and together, let’s continue to build better banks and bankers for a better society! Thank you!

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The induction of the BAIPHIL’s incoming Directors, Officers and Chairpersons on July 21, 2015 at the Rizal Ballroom of the Makati Shangrila Hotel, once again, set the tone for the exciting year ahead, made extra special as our organization celebrates its Diamond Jubilee Year. The program started with a Holy Mass celebrated by Fr. Titus M. Mananzan, SVD while the PDIC Chorale led everyone in singing specially chosen Mass songs. For the 11th year, BSP Governor Amando M. Tetangco, honored Baiphil with his presence as Guest Speaker and Inducting Officer. Also present were Bangko Sentral ng Pilipinas’s Monetary Board members Armando Suratos and Valentin Araneta and BSP officials Deputy Governor Nestor Espenilla, Jr., Managing Directors Restituto Cruz and Edna Villa, Directors Fe dela Cruz and Carlyn Pangilinan and Deputy Director Vencent Salido. PDIC President Cristina Orbeta and ALMC Executive Director Atty. Julia Bacay-Abad likewise attended.

Gracing this inaugural celebration were movers and shakers of the banking industry --- BAP President and RCBC President Lorenzo V. Tan, PNB Chairperson Florencia Gozon-Tarriela, ANZ Bank CEO Peter Chan, Bank of America Country Manager Henry Pelaez, Bank of Tokyo-Mitsubishi UFJ, Ltd. General Manager Tadahiro Miyamoto, CTBC Bank President & CEO Wen Hsiung-Tsai, ING Bank Country Manager Consuelo Garcia, JP Morgan Chase Bank Senior Country Officer Roberto Panlilio, PDS Group President & CEO, Cesar B. Crisol, PCHC President & CEO, Emmanuel Barcena, Citibank Director John Ong and Northpoint Development Bank President & CEO, Alex Ongtenco, BAP Managing Director Cesar Virtusio and Senior Associate Director Ma. Consuelo Justiniani as well as past presidents of BAIPHIL.

“Building Capacity Towards Financial Inclusion and Integration”

Directors/officers of BAIPHIL, colleagues from BAIPHIL and the financial community, distinguished guests, friends, ladies and gentlemen: As I was preparing the full year performance report for fiscal year 2014-2015, the lyrics and melody of the broadway musicale..... Rent...., With its theme song: seasons of love, kept on nagging me. This is a very significant song which lyrics, I find so appropriate in starting my accomplishment report for the fiscal year. Please join me in going through this theme song: “five hundred twenty five thousand six hundred minutes, .......(derived from a simple mathematical computation of 365 days in one year, multiplied by twenty hours in one day, multiplied by 60 minutes in one hour equals 525,600 minutes)....How do you measure a year? In daylights, in sunsets, in midnights, in cups of tea, in inches, in miles, in laughter, in strife.....How do you measure a year in life? How then do we measure a year and life of service at BAIPHIL? Did we really spend all the half million minutes with BAIPHIL? Of course not..... This is a summation of our lives expressed in minutes for the past fiscal year. Recognizing the fact that our work in BAIPHIL is a layer on top of our regular workload in our respective organizations, doubled with the time demanded from us by the family, plus the toxic travel time on the roads with horrendous traffic barring our way and of course the needed rest time......Only a very small portion of the 526,600 minutes were given to BAIPHIL. But the very little portion brings with it the quality of output, all done out of dedication, love and sincere desire to serve! How then do we measure a year in BAIPHIL? In meetings? in GMMs? In trainings? In seminars? In outreaches? In fellowship events?......... And thus lets look back on how we did it and what we accomplished? The various working committees will be acknowledged at the latter part of this report. One year seems too fast. Heading the fiscal year starting July 1, 2014, and with a group of men and women, on July 18, 2014, swearing before the BSP governor to seal and make public, the direction to serve at BAIPHIL, we now realize that another fiscal year is ending. The BSP governor even expressed surprise too when we paid our courtesy call last Tuesday by asking, “ has one year been over”? How fast indeed! What have we done to contribute, no matter how modest? Tonight friends, let me bring you back to a year packed with events and activities. The traditional activities which happened, and some special events which took place under the baton of our servant leaders from the various member institutions, will be shown to you in summary. In support of our theme for the year, BAIPHIL : REACHING GREATER HEIGHTS THROUGH CONTINUING EDUCATION AND TRAINING”, the BAIPHIL Education and Training Institute (BETI) in close coordination with the Credit Committee took the lead, in expanding and reinforcing the learnings of 3,884 bankers and employees of financial institutions covering 78 various seminar offerings, resulting to a modest 6.5% increment in terms of attendance. During the entire year. The efforts exerted in pooling, contacting, coordinating in order to zero in on the best subject matter experts for the seminars topics offered, have been continuously recognized by the management of BAIPHIL.

Highly attended were topics on regulations discussed by regulators themselves which give us a clear picture on the thirst of Filipino bankers to know and be informed of regulations. The first run was followed with very warm request for another session and so on. Attendees made sure that being in these seminars will translate to understanding and properly complying to regulations. Other work by our team mates include, marketing the seminars to the member institutions. Of course reporting on weekends, Saturdays and some holidays for the seminar runs to facilitate, keep watch and be with the attendees, are something worth bowing our heads at. This year, the efforts have proven kind to our coffers too, as surfaced in the financial figures for a gross support of more than P11 million and a net support of P 4million plus......Friends, please join me in giving our appreciation to the men and women of BETI and Credit Committee, a rousing applause to salute to the servants who have selflessly dedicated their time, effort and rests on weekends to support BAIPHIL. Still on education, awareness and information exchange, the Special Projects Committee, left no stone unturned by working very closely on our partnership with BSP, BAP and PACSB, allowing them to give the best shot, by offering seminar runs on financial education program, and enriching 1,225 beneficiaries for the entire fiscal year. Further supporting the theme for the year, BAIPHIL continues to empower the BAIPHIL members via information and awareness updates, through the efforts and lead from our Research and Information Committee, Legal and Regulatory Committee, Programs and Attendance Committee. The daily issue of the BAIPHIL Market Watch—released to all member banks daily and further cascaded to the employees of the member banks—a quick view of the financial market at a glance, neighboring regions as well as the events and updates within the Philippines • The issues of the BAIPHIL Skills Empowerment Series (BASES) also cascaded

to the member institutions on various leadership and personal skills development and honing

• Legal and Regulatory Updates from BSP, SEC, BIR, PDIC, released to the

member institutions on regular frequency to remind and make people aware on compliance requirement

• Monthly general membership meeting with varied topics from invited

subject matter experts This fiscal year, still adopting the same theme for the year, we successfully concluded the 28th Biennial National Convention in Tagaytay City on Feb. 28, 2015 to March 1, 2015.

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Attended by 98 delegates from various banks and financial institutions and 40 invited partners, the convention was highlighted by the speeches from invited guests which centered on the preparation and grasping of the ASEAN Integration. The topics included A lot of preparation on major direction towards putting the Philippines at par with other countries in the region as we also heard the PCHC president discussing the updates on the Philippine Automated Clearing System, other regulatory updates on BASEL 3. Keynote speaker Senator Bam Aquino delved on the role of banks in our Nation’s Economic Development where the component of financial inclusion and looking at the unbanked areas to bring about economic development were focused. Of course, the release of much stress and tension was eased out with the topic of Dr. Viloria on Cellular Nutrition, citing the superiority of alkaline category of food compared to the protein category of food. Weren’t these topics enriching??????? And not forgetting the much awaited for, fellowship night. BAIPHIL as an organization, has always been conscious of its corporate social responsibility, as exhibited in two medical, dental missions in Atimonan, Quezon with 988 patients and Bayambang, Pangasinan with 1,803 patients under the headship of the special projects committee. These outreaches were made possible through our partnership with the SM Foundation and the volunteer support from BAIPHIL members, and their families, especially those in the medical practice, whose dedicated support and service we sincerely acknowledge with thanks. Tomorrow, June 27 is a year ender outreach dabbed as “Handog sa mga Ulila” where the Special Projects Committee again takes the lead in giving joy to the orphans in an orphanage in Sucat, Paranaque. We enjoin you to be with us in this very heart fulfilling event. Part of our CSR advocacies is the continuing support of BAIPHIL to 3 high school scholars. During the National Convention, for the first time, BAIPHIL through the special projects committee launched the Best Bank CSR from among the member banks, with Security Bank at the top rank, followed by CARD Bank and ING Bank. Aware of the need to uprise the members of the activities of BAIPHIL, the issues of BAIPHIL on the Go, newspaper supplement, BAIPHIL journal are part of the efforts exerted by our PR and Publications Committee. Is the BAIPHIL family growing? Yes we are, and aims to grow bigger in membership. For the fiscal year, the Membership Committee brought in 24 new associate members and one institutional member, the Rizal Bank Inc. We are expecting the new members to be fully baptized to the brand of service, BAIPHIL and its members take on. Affiliation to the various working committees signals the start of the service and life at BAIPHIL. Not losing sight on the need to enhance camaraderie among member banks, the BAIPHIL chorale competition made its year 3 run on November 25, 2014 which was facilitated by the Special Projects Committee. Union bank of the Philippines emerged the champion with RCBC as the first runner up. The 11th BAIPHIL Badminton Tournament under the leadership of our Sports and Fellowship Committee was held in January 2015, putting together a number of banks who displayed their skills in badminton while exchanging pleasantries with colleagues in the industry. Silver and platinum cup as major categories surfaced winners from among the participating banks. BAIPHIL was visible among the training providers in the financial market in the ASEAN region when it was represented in the Asia Pacific Association of Banking Institute Conference in Mumbai, India, for our partnership program. Additionally, BAIPHIL was made part of the ASEAN Banking Council in Mactan, Cebu last November 12-13, 2014. Relaxation, enjoyment through song, dances...When members put their hair down in fellowship events, had the following events spearheaded by the sports and fellowship committee. The Christmas Party themed “IF YOU WERE NOT A BANKER, WHO ARE YOU”, surfaced the other side of the BAIPHIL family....Not the banker doing the traditional or non traditional banking functions, compliance and risk..... But the fairies, the singer, dancer and the vocation that many have dreamed of. A time to exercise and do the zumba was an exciting event which capped the BAIPHIL week celebration. And for those who still do not know, BAIPHIL is a very fertile ground to scout for singers and dancers.......Many of course in the post employment status already and thus quite expensive for a package.

Interested in knowing how our financial position looks like? Do we have enough funds in the coffers to sustain our activities and plans? Please give your attention to the growth we have thus achieved which is flashed onscreen. The Finance Committee/Accounting team have carefully taken care of our finances, always careful to put in the needed controls. Support Committees which are just behind the scenes are equally engaged to bring the best in defense of the various deliverables of the institute. Finance and Audit Committees have forged cooperation to support the secretariat’s pursuit to continue streamlining processes of routine administrative and accounting tasks.....In sight are the needed efficiency and productivity. For this year, the enhanced billing statement has been put in place. Annual audit for the continued health of our organization was done with very minor items for correction. Our Technology Management Committee comes visible especially on times when internet connection of the secretariat office renders delays in communication. This committee is also tracking visits to the BAIPHIL website.....I hope at least for once this fiscal year, you have visited the website.... A total of 8 locations evaluated and conducted with ocular inspection by Project NOBA team (NOBA meaning New Office for BAIPHIL) were presented for a possible transfer site of our secretariat office with a space for small sized seminar venue as well as a space to house committee and board meetings. None has been pinned down as yet, due to concerns of locations, affordability, size of property, value of property and other concerns....But this remains to be a work in progress as BAIPHIL management is bent to move out from our current office in Roxas blvd. All told, one year was really packed with events and activities. With the resignation of the secretariat head, our team at the secretariat were able to deliver requirements, no matter how stretched and thinly spread. The melodies executed and delivered by the different committees at work and all the support teams, with the lead of the board has continued to create a beautiful melody for the orchestra....All geared towards the continued growth and sustainability of projects, everyone really did their best for BAIPHIL! These events and activities happened because BAIPHIL is blessed with people who are willing, prepared and determined to serve the institute. Friends, with heart full of thanksgiving, I wish to present to you the servants leaders of the institute: lets salute them with a rousing round of applause! As I step down as the 69th president of BAIPHIL, I thank god for the guidance and the blessings he has showered us with, my heartfelt thanks to all the directors, officers, chairpersons, committee members and to all past presidents, all members, it was a good full year of service, the experience of which I will keep precious in my heart and memory. I also thank my employer especially my boss, Melit Araneta, who understood why I had to be out of the office to attend to BAIPHIL activities, and to my husband, children and family for supporting me all the way with their love and concern...Mabuhay tayong lahat! Good luck and more power to the incoming team headed by Rhoneil Fajardo! Lets work together to keep BAIPHIL growing and standing proudly side by side with competitor training providers especially with the inflow of training providers from other areas in the region. God’s peace be with us all!

- Board of Directors - BAIPHIL Officers - BAIPHIL Education & Training Institute Committee - Research & Information Exchange Committee - Credit Committee - Sports & Fellowship Committee - Program & Attendance Committee - Membership Committee - Special Projects Committee

- PR & Publications Committee - 28th National Convention Committee - BAIPHIL Week Committee - Technology Management Committee - Finance & Budget Committee - Audit Committee - The Advisers - The Secretariat

A loud round of applause came with the announcement ... BAIPHIL’s Pearl Awardee 2014-2015 is Amelita “Amie” Cua, Chairperson of the 2015 National Convention Committee. A Certified Public Accountant, Amie is Vice President and Internal Audit Head of Philippine Trust Corporation or Philtrust, a company she has served with unwavering dedication and commitment for three decades now. She earned her Masters Degree in Business Administration from PSBA Manila where she was awarded the Dean Santiago dela Cruz Award for Academic Excellence. She finished her Bachelor’s degree in Business Administration major in Accounting with honors from the same school. Amie fondly remembers then outgoing President Becky Torres’s smile and warmth when she joined BAIPHIL in 1999. With the support and encouragement of Philtrust and her senior management, Amie eagerly signed up with the Education Committee to help coordinate its various seminars. Being a newbie, she felt nervous and a bit scared but she was immediately put at ease by the friendly and heartening welcome of BAIPHIL’s directors and colleagues. Amie found a special camaderie within the Education Committee which nurtured her desire to become actively involved in BAIPHIL’s many activities. Amie has been a member of BETI for the last 15 years and has served BAIPHIL as Internal Auditor from 2001-2002 and again in 2006-2010. She then became Director in 2012 to 2013. Let’s get to know more about Amie as she answers a few questions we sent her. What does the Pearl Award mean to you? For me, the Pearl Award is a great blessing from the Lord and a symbol of the love expressed by the BAIPHIL body. It is extremely humbling when you get awarded by the very people, who in the first place enabled you to get the award. They created the opportunities for us to work in and gave us the warmth and friendships that made us stay. I am very grateful first to God and secondly to all of the BAIPHIL officers and members. What do you consider as the two most important lessons you’ve learned in your banking career? First, live by Proverbs 16:3 --- “commit to the Lord whatever you do, and He will establish your plans.” God is the ultimate source of wisdom. You really have to commit everything to God first if you want to be on the right track. Second, never stop studying and preparing for the changes that lie ahead. What message can you give to BAIPHIL members, particularly those who are new to the organization? Welcome to BAIPHIL! First, it is not just an organization … it is your new extended family! Determine what you are passionate about and join the committee that resonates that passion. By doing so, years will pass by and you will not even notice it as you have been doing what you love to do. Second, BAIPHIL’s missions have greatly benefited both the banking community and the outside sectors of our society. It is a joy and a privilege to be part of their accomplishments. Can you share some personal trivia? Being single, I live with my Mom and brother. We more than make up for this small size with a horde of cousins and their families (chuckles). Weekends are usually spent on different ministry activities in the church, acting as coordinator for BAIPHIL seminars and running our usual household errands. I love to read, draw, watch movies and play a little piano. From your BAIPHIL family … Congratulations and BRAVO Amie!

List of Awards • Board of Directors

• Committee Chairpersons

• Advisers

• Committee Members

• Perfect Attendance to GMM Meetings, Christmas Party And 28th NATCON

1. Irene DL. Arroyo 2. Aida R. Apostol 3. Racquel B. Mañago 4. Francis M. Puzon • Institutional Award- METROPOLITAN BANK & TRUST Co. - Most active and supportive institution based on the following criteria: Number of participants in the conduct of seminars - 40% Number of attendees during the GMMs - 30% As support/placement (regardless of size of Ad) - 20% Number of attendees during the NATCON - 10% • Team BETI Awards- no. of seminars attended as coordinators

1st Place - Amelita G. Cua 2nd Place - Ma. Bernadette T. Ratcliffe and Celia M. Sotto 3rd Place - Marissa B. Espino and Romel D. Meniado • Medical Mission - non BAIPHIL Volunteers

1. Christina Abanto 2. Roberta B. Afable 3. Rodolfo I. Andres III 4. Brendan Matthew Barcena 5. Rosette Barcena 6. Simon Emmanuel Barcena 7. Charmagne R. Brillante 8. Dr. Anne Margaret G. Brillante 9. Dr. Czar Ivan R. Brillante 10. Lelith Cervantes 11. Dra. Kristine Joy Dio 12. Alfeonito Galvadores 13. Emmeline Gavino 14. Josefina Hofileña 15. Dr. Regente Imperial Lapak 16. Francis Melano

• Special Presidential Achievement Award (based on performance) a). Individual Award - whose performance and exemplary conduct of their BAIPHIL duties resulted to overwhelming success of their committee/s. - Racquel B. Mañago – Chairperson, BAIPHIL Education and Training Institute - Sheryll K. San Jose – Chairperson, Research Committee - Rene S. Natividad – Chairperson, Technology Management and Exhibits Committees b). Committee Teamwork - Committees whose cohesiveness, consistency and teamwork brought about cooperation, camaraderie and life in all BAIPHIL activities. - BAIPHIL Education and Training Institute (BETI) - Research Committee - Special Projects Committee

c). Most Promising Member (Rookie) - New member who has actively participated and contributed in the conduct of their Committee Project. - Jose Enrico T. Sandoval- Chairperson, Program & Attendance Committee

• Special Presidential Recognition - Past President/Associate Life Member who despite

retirement from an institution, is still actively serving BAIPHIL, particularly as adviser, resource speaker and spearhead to sub-committee undertakings.

- Maria Elena M. Ruiz- Chairperson, Special Projects Committee - Teresita I. Andres – Chairperson, Sports & Fellowship Committee and Adviser, 28th National Convention • Pearl Award - 2-Fold objectives of the Pearl Award a). To give recognition to that Banker whose selfless dedication to the profession resulted in some exceptional achievements which significantly contributed to the welfare and wellbeing of the Institute and its members. b) To focus attention to those achievements to serve as inspiration example for all of us to forge ahead to greater heights of achievements in the spirit of selfless service. - Amelita G. Cua – Over-all Chairperson, 28th National Convention and Member, BAIPHIL Education & Training Institute

17. Marc Paolo S. Nevado 18. Mario A. Nevado 19. Dra. Mariel S. Nevado-Gammad 20. Dra. Paulette David Nacpil-Dominguez 21. Dra. Jamie Rose Santos-Orlina 22. Aleli Osumo 23. Dr. Franz Joshua Puzon 24. Jan Jethro Puzon 25. Luningning Ramos 26. Justin John Riel 27. Dr. Sandra Samonte 28. Dr. Eleanor Samonte 29. Dr. Aaron Constantine B. Santos 30. Delia Solis 31. Ruth Tamayo 32. Dr. Rebecca Wassmer

On 29 July 2015, BAIPHIL President Atty. Rhoneil S. Fajardo inducted two senior officers of the Philippine National Bank as associate members --- Ms. Ana Rose T. Kwan, Senior Vice President and Mr. Victor G. Calma, Vice President.

Mr. Wilfredo “Willy” S. Talastas has been with BAIPHIL since 2002, and was a member of its Board of Directors and committees for several years. He was very active in BAIPHIL's financial literacy and education programs with the BSP and BAP, and was involved in coming up with the new Curriculum on Business Administration major in Banking, which was approved by the Commission on Higher Education. He also coordinated activities of BAIPHIL with BAP and the Philippine Association of Collegiate Schools of Business (PACSB), such as the Faculty Immersion Programs and banking updates and lectures for PACSB's deans/professors. As a bank executive, Willy was First Vice President and Head of the Trust Division of Security Bank Corporation. He was also a Director of the Money Market Association of the Philippines and the Philippine Trust Institute, and an Adviser to the Board of the Trust Officers Association of the Philippines. He also served as Vice Chairman of the BAP Education Committee, and was Chairman of the ASEAN Committee on Banking Education in Cambodia (2010), Laos (2011), and Myanmar (2012). Currently, Willy is a faculty member of the Education Committee of the Trust Institute and the Ateneo Center for Continuing Education. He is also a member of the Board of Trustees of Serviam Community, which is chaired by Cardinal Chito Tagle. Being a life-time associate member of BAIPHIL, there is no doubt that Willy will continue to be active in the Institute’s activities.

Mr. Mardonio “Jun” C. Cervantes was First Vice President and Treasury Operations Group Head of UnionBank before he retired in 2014. He is fondly known in UnionBank circle as “JunC”. A Certified Public Accountant by profession, Jun was very involved in industry and community activities. He was Chairperson of the Holy Eucharist Parish Committee on Planning and Implementation and a Servant Leader of the Extraordinary Ministers of the Holy Communion. He was also a member of the Philippine Clearing House Corporation (PCHC) Core Group and the BSP/BAP/PCHC Inter-Agency Committee on Check Truncation Processes/Clearing. His passion and commitment is evidenced by several accolades and awards he received throughout his career such as the Philippine Commercial International Bank (PCIB) award for A Suggested System for Effective Teamwork (ASSET) and a record-breaking four (4) UnionBank Chairman’s Awards for Operational Excellence. With BAIPHIL, immediately after his induction as member in 2008, he became an active associate of the Membership Committee. He was also appointed BETI Chairperson for two consecutive years (FY 2010-2011 & 2011-2012) and BETI Director- in-Charge for FY 2012-2013. During his three year stint as Chairperson and Director in-Charge of BETI, the committee’s performance and output reached new heights. He capped his extraordinary performance with a Pearl Award in 2013. As Jun believes in continuous growth and improvement, we are sure that we haven’t heard the last from Jun yet.

The 45th ASEAN Banking Council Meeting was held on 11 – 12 June 2015 at Grand Hyatt Hotel, Singapore. It was attended by more than 170 banking executives and experts from the 10 ASEAN countries. The Philippine delegation was headed by Mr. Herminio M. Famatigan, Jr. of the Bankers Association of the Philippines, and included representatives from BAIPHIL, PCHC, Ateneo-BAP Institute of Banking, and local banks.

BAIPHIL was represented by its President, Atty. Rhoneil S. Fajardo, and participated in the meeting of the Council's permanent Committee on Banking Education. The Committee, which is chaired by the Philippines, reviewed the results of various banking education institutes surveys and agreed to establish ASEAN standards on common skills competencies, particularly on credit, analysis, operational risk, and compliance.

It was an auspicious day for BAIPHIL. On 29 July 2015, the documents for the purchase of Unit 2103 and one parking slot located at The Peak Tower Condominium, L.P. Leviste Street, Salcedo Village, Makati City, was signed by Berisa Development Corp. and BAIPHIL, represented by President Rhoneil Fajardo. The simple signing and turnover ceremony was held at the Brasserie in the presence of all BAIPHIL Directors, as well as Past President and Chief Adviser to the Board,Tess Galvadores. The purchase is the culmination of a long-time dream of BAIPHIL to have its own training center and a new office space for its Secretariat.

Dear colleagues, I thank everyone who attended our first GMM where we had BSP Governor Amando Tetangco, Jr. as Guest Speaker and Inducting Officer. The meeting was quite well-received, and it was inspiring to see many of our members and guests in high spirits and with great smiles. We hope that the enthusiasm carries over for the rest of the term and to the rest of the team. This is, after all, our Diamond Jubilee and we have a lot to be thankful for and to look forward to! During my Inaugural Address, I mentioned the plans of the leadership team under our BEST (Build, Engage, Strengthen and Transform) strategy. I am happy to report progress on some of them: BUILD: New BAIPHIL Office – The search for a new office space to house our Secretariat and serve as a training center has been a dream nurtured for several years. Thanks to our Project NOBA members and incumbent directors, this dream is now a reality with the purchase of a 155 sqm condominium unit and one parking slot located at The Peak Tower, Levite Street. We are currently in discussions to renovate the space and hope to inaugurate it by November. ENGAGE: Welcome Lunch Sessions – Starting last month, we began our Welcome Lunch sessions for new members organized by PACOM and Membership Committee. While the members will still be introduced to the general membership during GMMs, the more intimate set-up streamlines the GMMs and allows the leadership team and new joiners to get to know BAIPHIL and each other better. The first session with Ana Rose Kwan (who is a balik-BAIPHIL!) and Victor Calma was doubly significant as we also inducted our new Associate Life Members, Willy Talastas and Jun Cervantes, who shared valuable personal insights on BAIPHIL. STRENGTHEN: e-Publications – As you would have noticed early at the start of our term, we introduced web versions of BAIPHIL Market Watch (BMW) and LegReg Updates. Now, we have an e-version of our newsletter, the BAIPHIL on the Go! The electronic and web version of our publications is an economical and effective way of reaching out to our stakeholders, and a handy and accessible tool to educate the general public on industry matters. The innovation by our Technology Management Committee, with valuable content provided by our Research, LegReg and PR & Publications committees, significantly increased the visits to our website, and enabled our readers to explore the rest of what we offer. Watch out for more enhancements to our e-Publications! TRANSFORM: Education and Training Course Committees (ETCCs) – We completed the organizational meetings of our ETCCs in July, setting the direction for the delivery of our training programs this year. On 28 July 2015, our indefatigable ETCC Chairs and Directors-in-charge had a very engaging discussion with our always supportive Chief Adviser for Education and Training, BSP Managing Director Resty Cruz and other partners in BSP. If you haven’t signed up yet with a Course Committee, please do so. Not only is it a great way to network with your peers in the industry, it is an important contribution to our advocacy of building better banks and bankers. Clearly, it has been a most auspicious start to our Diamond Jubilee. With your active involvement in all our activities, I am optimistic that more of the BEST are sure to come! With warm wishes to you all, Rhoneil Fajardo