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Philippine National Bank Company Brief June 2020
Philippine National Bank
Company BriefJune 2020
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Company Introduction 3
Financial Highlights 9
Board of Directors & Senior Management 13
Awards & Citations 16
About PNB
§ PNB has 715 branches and 1,681 ATMsstrategically located nationwide. TheBank maintains its position as thePhilippine bank with the most extensiveinternational reach with 70 overseasbranches, representative offices,remittance centers and subsidiariesacross Asia, Europe, the Middle East,and North America.
§ Backed by over a century of stability andexcellence, PNB looks forward to moreyears of serving its customers first.
§ Philippine National Bank is one of the country’s largest private universal banks in terms of assets, loansand deposits.
§ It provides a full range of banking and other financial services to its highly diverse clientele comprised ofindividual depositors, small and medium enterprises, domestic and international corporations,government institutions, and overseas Filipinos.
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Products and Services§ PNB provides a full range of quality products and services to a wide customer base:
Branch Banking
• Deposit
Accounts
• e-Banking
Services
• Cash
Management
Solutions
Retail Lending
• Home Loans
• Auto Loans
• Salary Loans
• SMEs
• OPHL
Institutional
Banking
• Corporate &
Middle Market
• Trade Finance
• Financial
Institutions
Treasury Services
• Fixed Income
Investments
• Foreign
Exchange
Services
• Interest Rate
Swaps
Trust & Wealth
Mgmt
• UITFs
• Personal Trust
• Corporate Trust
• PNB Wealth
Management
Remittance
Services
• Sending/
Receiving
• Global Filipino
Card
• Overseas Bills
Payment
§ Through its subsidiaries and affiliate, the Bank also engages in:
Insurance
• Non-life insurance
• Life Insurance
Investment Banking
• Underwriting
• Distribution of
Securities
• Financial Advisory
• Project Finance
• Loan Syndication
Stock Brokerage
• Equities Trading
• Stock Market Research
Leasing
• Financial Leases
• Operating Leases
• Receivable
Discounting
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Establishment of PNB - served
as de facto central bank of the Philippines
until 1946
1916
Major Milestones
Became the first
universal bank in the Philippines
1980
Privatization of PNB reduced Government ownership to
45%
1989-96
The Lucio Tan Group acquired around
35% of PNB’s total outstanding capital stock and joined the
Bank’s Board of Directors.
1999
Lucio Tan Group became the
single biggest private
stockholder of PNB
2000
Joint sale of Government
and Lucio Tan Group shares
2005
Full privatization after a Follow-on Equity Offering
(89 million primary shares
and 71.8 million secondary
shares)
2007
Merged with Allied Banking
Corporation (ABC) on
February 9, 2013
2013
Completed its stock right offering of
common shares raising
P11.6 billion in additional capital
(P10 billion of which was
infused into PNB Savings Bank)
2018
Successfully closed and
signed a USD150 million
3-year syndicated term
loan facility
2015
PNB successfully issued USD300 M
of 5-Year Fixed Rate Senior
Notes out of its USD1 B Medium
Term Note Program
2014
• PNB inked a Syndicated Loan amounting to USD250M through its Tokyo Branch
• PNB successfully issued a maiden peso bond offer which reached P13.87 B
2019
• PNB listed 276,625,172 common shares from a recently concluded stocks right offering raising P12 B
• PNB issued US$ 750 M Notes to be drawn down from its recently increased US$ 2 B Medium Term Note
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PNB Subsidiaries and AffiliatesPhilippine National Bank
Domestic
PNB Capital and Investment Corp.
PNB Holdings Corp.
PNB General Insurers Co. Inc
PNB Securities Inc.
PNB-Mizuho Leasing and Finance Corp.
PNB-Mizuho Eqpt Rentals Corp.
OverseasPNB Intl. Investment
Corp.
PNB Remittance Centers Inc.
PNB RCI Holding Co. Ltd.
PNB Remittance Co. Canada
PNB Global Remittance & Fin’l Co. (HK) Ltd.
PNB Europe PLC
Allied Banking Corp. (HK) Ltd.
Allied Commercial Bank (Xiamen)
100%
100%
100%
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100%
75%
75%Allianz PNB Life Insurance Inc.
Affiliate:
100%
100%
100%
100%
100%
100%
51%
99.04%
44%
*Last March 1, 2020, PNB integrated its wholly-owned thrift bank subsidiary, PNB Savings Bank (PNBSB),
into the Parent Bank through acquisition of its assets and assumption of its liabilities in exchange for cash.
North America - 30
Market Reach
Europe - 4
Middle East - 19
Asia & Oceania - 17
Global Network
70 offices in 17countries
490 correspondent banks
Domestic Network
715 branches in the Philippines
1,681* ATMs nationwide
Branch Distribution:
62% outside Metro Manila
As of Jun 2020
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* 117 are Cash Accepting Machines (CAMs)
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Company Introduction 3
Financial Highlights 9
Board of Directors & Senior Management 13
Awards & Citations 16
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1H 2019 1H 2020
1,087
1,083
Profitability & Balance SheetNet Income Before ProvisionsIn Php Millions
• Total operating income up by 24%, boosted by solid growth in net interest income & increase in trading and foreign exchange gains.
• Net income reached P1,390 M in 1H 2020, 65% lower than year-ago level as the Bank took a proactive approach in its provisioning due to economic uncertainties on the impact of COVID-19.
Total AssetsIn Php Billions
• Total Assets almost flat in 1H 2020 as sustained momentum in core lending and deposit – taking activities cushioned the decline in trading and investment securities arising from the disposal of various securities, net of purchases.
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1H 2019 1H 2020
6,003 10,215 70% 0.4%
1H 2020 P&LPNB Consolidated
(in PHP million) 1H2020 1H 2019 % Change
Interest Income 24,494 23,711 3.3%
Interest Expense 7,014 8,967 -21.8%
NET INTEREST INCOME 17,480 14,744 18.6%
Fee-Based and Other Income 6,143 4,383 40.2%
Net Service Fees and Commission Income 1,696 1,856 -8.6%
Other Income 4,447 2,527 76.0%
TOTAL OPERATING INCOME 23,623 19,127 23.5%
Admin and Operating Expense 13,408 13,124 2.2%
Income Before Provisions 10,215 6,003 70.2%
Provision for impairment and credit losses 8,440 809 943.3%
Provision for Income Tax 385 1,225 -68.6%
NET INCOME 1,390 3,969 -65.0%
Return on average equity (ROE) 1.8% 6.0%
Return on average assets (ROA) 0.3% 0.7%
Net Interest Margin (NIM RATE) 3.5% 3.8%
Cost efficiency ratio 59.1% 69.2%
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1H 2020 BALANCE SHEETPNB Consolidated
(in PHP million) 1H 2020 1H 2019 % Change
Cash / Due from BSP & Other Banks 234,140 180,575 29.7%Investment Securities 180,061 243,606 -26.1%
Loans and Receivables 602,619 598,486 0.7%Property & Equipment 20,667 21,433 -3.6%
Investment Properties 14,083 13,516 4.2%Other Assets 30,240 29,808 1.4%
TOTAL ASSETS 1,082,531 1,087,424 -0.4%
Deposit Liabilities 790,696 775,120 2.0%
Bonds Payable 65,869 67,223 -2.0%
Bills & Acceptances Payable 36,053 72,680 -50.4%Other Liabilities 35,610 36,398 -2.2%
TOTAL LIABILITIES 928,228 951,421 -2.4%
TOTAL EQUITY 154,302 136,003 13.5%
TOTAL LIABILITIES AND EQUITY 1,082,531 1,087,424 -0.4%
Loans/Deposits 76.7% 76.5%
Total CAR 15.9% 14.0%
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Company Introduction 3
Financial Highlights 9
Board of Directors & Senior Management 13
Awards & Citations 16
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Board of DirectorsFlorencia G. TarrielaChairman/Independent Director• Serves as director of multiple PNB
subsidiaries• Former Undersecretary of Finance• Former Director of Bankers
Association of the Phils. (BAP)
Edgar A. CuaIndependent Director• Independent Director of PNB Capital and Investment Corp.• Independent Director of Allied Commercial
Bank, Xiamen• Director of Davao Unicar Corp.• Independent Director of PNB Mizuho Leasing and Fin.
Corp.• Independent Director of PNB Savings Bank
Lucio C. TanDirector• Chairman and CEO of LT Group, Inc.• Chairman and CEO of PAL Holdings, Inc.• Chairman and CEO of MacroAsia Corp.
Felix Enrico R. AlfilerVice Chairman/Independent Director• Serves as director of multiple PNB subsidiaries• Former Director of the BSP• Chairman of PNB General Insurers Co., Inc.• Chairman of PNB International Investment
Corp., USA
Estelito P. MendozaDirector• Director of Petron• Director of San Miguel Corporation• Practicing lawyer for more than 60 years
Michael G. TanDirector• President and COO of LT Group, Inc.• President and COO of Asia Brewery, Inc.• Director of Victorias Milling Company, Inc.
Jose Arnulfo “Wick” A. VelosoPresident and CEO/ Director
• Director of Allianz PNB Life Insurance, Inc.• Director of BAP and Chairman of the BAP Capital Markets Development Committee• Director of Asian Bankers Association, BancNet, Inc., European Chamber of Commerce of the Phils.,
Phil. Payments and Management Inc.• Member of CIBI Foundation, Inc.• Former President and CEO of HSBC Phils.• Former Director of HSBC Electronic Data Processing (Phils.), Inc.• Former Chairman of HSBC Savings Bank Phils.• Former Chairman of HSBC Insurance Brokers (Phils.), Inc.• Former Director of British Chamber of the Phils.: former Chairman of the Council of Trustees, The
British School Manila, Member Management Association of the Phils.• Former Chairman of the BAP Open Market Committee• Former President of the Money Market Association of the Phils.• Former Director of Philippine Dealing and Exchange Corp.
Christopher J. NelsonDirector• Executive Director of the British Chamber of Commerce
of the Phils.• Director of the Federation of the Philippine Industries Inc.• Trustee of the American Chamber Foundation of Commerce
of the Phil., Inc.• Trustee of the Philippine Band of Mercy• Trustee of Dualtech Training Foundation
Vivienne K. TanDirector• Director of LT Group, Inc., MacroAsia Corporation, University
of the East, University of the East Ramon MagsaysayMedical Center, Eton Properties Phils., Inc.
• Founding Trustee of Philippine Center for Entrepreneurship(Go Negosyo)
• College of Saint Benilde - Trustee
Florido P. CasuelaDirector• Chairman of PNB Securities, Inc.• Chairman and President of Casuela Equity
Ventures, Inc.• Senior Adviser of the Bank of Makati (A Savings
Bank), Inc.• Former President of Landbank of the Phil.,
Maybank & Surigao Micro Credit Corp.
Federico C. PascualIndependent Director• Serves as director of multiple PNB subsidiaries• Former President and General Manager of
GSIS• Former Director/President & CEO of Allied
Banking Corp.
Sheila K. Tan-PascualDirector• Business Development Manager of Allied
Banking Corp. (Hong Kong) Ltd.• Former Marketing Development Officer of
Asia Brewery Inc.
Leonilo G. CoronelDirector• Independent Director of Megawide
Construction Corp.• Independent Director of DBP-Daiwa
Capital Markets Phil.• Former Executive Director of BAP
Carmen K. TanDirector• Director of MacroAsia Corp.• Director of LT Group, Inc.• Director of PAL Holdings, Inc.
Domingo H YapIndependent Director• President of H-Chem Industries, Inc., DHY Realty &
Dev’t, Inc., Colorado Chemical Sales Corp., Universal Paint & Coating Phils., Inc., Alliance Land Dev’t Corp.
• Former President of the Federation of Filipino-Chinese Chambers of Commerce & Industries, Inc.
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Senior ManagementJose Arnulfo “Wick” A. VelosoPresident and CEO of the Banksince 2018
Cenon C. Audencial Jr.EVPHead of the Institutional
Banking Sector
Roberto D. BaltazarEVPHead of Global Banking
and Markets Sector
Aida M. PadillaEVPHead of the Enterprise
Services Sector
Nelson C. ReyesEVPChief Financial Officer
Ma. Adelia A. JosonSVPOIC - Retail Banking
Sector
Isagani A. CortesEVPChief Compliance Officer
Jose German M. LicupFSVPChief of Staff to the
President and CEO
Maria Paz D. LimFSVPCorporate Treasurer
Nanette O. VergaraFSVPChief Credit Officer
Socorro D. CorpusSVPOIC - Human Resource
Group
Manuel C. Bahena, Jr.SVPChief Legal Counsel
Claro P. FernandezSVPHead of Public Affair
Group
Marie Fe Liza S. JaymeSVPHead of Operations
Group
Michael M. MorallosSVPHead of the Information
Technology Group
Rommel B. NarvaezSVPOIC – Marketing and Brand
Management Sector
Roland V. OscuroSVPChief Information
Security Officer
Norman Martin C. ReyesSVPHead, Digital
Innovations Group
Joy Jasmin R. SantosFVPChief Trust Officer & Head of
Trust Banking Group
Martin G. Tengco Jr.FVPChief Audit Executive
Simeon T. YapFVPChief Risk Officer
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Noel C. MalabagSVPHead, Global Markets
Group
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Company Introduction 3
Financial Highlights 9
Board of Directors & Senior Management 13
Awards & Citations 16
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Recent Awards
International Finance Awards (2019)“Fastest Growing Bank for Consumer LoansPhilippines 2018”
The Asset triple A Country Awards (2019)• “Best Syndicated Loan Award” (Bloomberry Resorts and Hotelssyndicated term loan facility)• “Most Innovative Deal Award” (Ayala Land’s retail bonds)•“Best Acquisition Financing” (Clark Global City Corp)
CMO Asia Awards (2019)“Brand Leadership Award”
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55th Anvil Awards (2020)“Public Relations Program on a Sustained Basis – DevelopmentCommunication” (PNB-PAL Mabuhay Miles Debit Mastercard)
Recent Awards
Recognized by the Philippine Institute of Corporate Directors(2019) as among the top-performing publicly listed companiesunder the ASEAN Corporate Governance Scorecard
Philippine Dealing System Awards (2019)“Ranked Top 3 Issue Managers/Arrangers (Investment HouseCategory)”
Investment House Association of the Philippines (2019)“Best Small-cap Equity Deal”
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SSS Balikat ng Bayan Awards (2019)“Best Paying Commercial Bank”
Unless otherwise noted, the financial data contained in these materials are presented under Philippine Financial Reporting Standards. Unless otherwisespecified, all the financial information is shown on a consolidated basis.
Information concerning financial institutions other than the Bank and its subsidiaries are based on publicly available information and the Bank has notindependently verified such data.
This presentation is being communicated only to persons who have professional experience in matters relating to investments and to person to whom it maybe lawful to communicate it to (all such persons being referred to as “relevant persons”).
This presentation is being furnished to relevant persons solely for their information and may not be reproduced or redistributed to any other person.
By participating in this presentation or by accepting any copy of the slides presented, you agree to be bound by the foregoing limitations.
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