Bank of the Philippine Islands

Investor Update
As of December 31, 2014

CONFIDENTIAL

History of BPI

Founded in 1851, as Banco Espaol 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 Compaia (present day Ayala Corp.)

assumes strategic stake in 1969

Morgan Guaranty Trust Company (MGT)

purchases stake in Peoples Bank, a predecessor
company, in 1974

DBS and GIC, Singapores sovereign wealth fund,

eventually acquire MGTs stake (21%)

GIC now has an effective 5.6% holdings via

Ayala-DBS Holdings Ltd.

Investor Update YTD December 2014

Pesos Fuertes, 1883

BPI Iloilo, 1897

Shareholders & Equity Profile

As of April 10, 2015
Fundamentals

Shareholders

PCOMP Index
Stock Price

Public Float,
37.8%
Ayala Corp,
48.3%

GIC, 5.6%
RCAM*, 8.3%

P106.00 per share

P36.64

P-B Ratio

2.89x

EPS**

P4.59

P-E Ratio

22.91x

Dividends

P1.80 per share

Dividend Yield

1.81%

Issued Shares

3.932 bn

Trading Volume

Investor Update YTD December 2014

5.37% weight

BV per share

Market Cap

* Roman Catholic Archdiocese of Manila

** Full Year 2014 EPS

Description

P416.79 bn
P373mm 30d ADTV

Our Unibank Businesses

Thrift banking
Thrift banking
Corporate finance,
advisory, underwriting
Securities brokerage
51%

Equipment leasing

40%

Thrift Banking
Remittance

Universal banking

Remittance
Asset management
FX dealing
Deposits, securities
dealing, asset mgt

International banking
Investor Update YTD December 2014

BPI: 163 Years in the Philippines

Expansive reach in both traditional and electronic channels
~7 million customers
825 branches
2,575 ATMs & CAMs

Branches
ATMs/CAMs

29,344 POS machines

14,542 employees

Investor Update YTD December 2014

International Footprint

Branches
United
Kingdom (2)
Italy (2)

Remittance
Centers
Spain (1)

Tokyo, Japan

Hong Kong
(4)

Dubai, UAE

Hong Kong
(1)

Investor Update YTD December 2014

Representative
Offices

BPI Industry Standing

As of December 2014
Market Size

Market Share

Rank

1,434

10,850

13.2

Net Loans

800

5,548

14.4

Customer Loans

802

5,020

16.0

1,177

8,151

14.4

Capital

140

1,097

12.8

Trust Assets

522

2,525

20.7

(In P Bn)

BPI

Assets

Deposits

Source: Published Statements of Condition

Investor Update YTD December 2014

Performance Highlights: As of December 2014

Stable profitability, strong risk culture, well-capitalized
Net income of Php 18.0 bn (US$ 406.3 mn)
ROE at 13.75%, ROA at 1.44%

Solid Financial
Results

Steady Income
Sources

Managed
Operating Costs

Robust Balance
Sheet Growth

Improved Asset
Quality

Net interest income up by 15% YoY

Non interest income, ex securities trading gains, up 11% YoY
Cost-to-income at 53.7%; industry at 61.2%

Net loans grew 27% to Php 800 bn (US$ 18.0 bn)

Deposits at Php 1.2 tn (US$ 26.5 bn), up 19%
Gross-90 day NPL ratio at 1.5%
Reserve Cover at 109%
Total Equity of Php 144 bn (US$ 3.2 bn)
CAR: 14.85% (vs BSP minimum requirement of 10%)
CET 1 CAR: 13.97% (vs BSP minimum requirement of 6%)

Adequate
Capital

Investor Update YTD December 2014

Revenues
Total Revenues (P bn)

Full year 2014 revenues at Php 55.8 bn

(US$ 1.3 bn)
Net Interest Income at Php 34.8 bn
(US$ 783.6 mn), up +15%
- Average Assets up by Php 247 bn
(US$5.6 bn), or +25%
Non Interest Income excluding securities
trading gains was Php 19.7 bn (US$ 444 mn),
up +11%

6%
11%
14%

52.5

55.8

47.4
38%
42%

Revenue Breakdown (P bn)

42%

15%
6%

58%

58%

2012
2013
Net Interest Income
Investor Update YTD December 2014

10%
25%

62%
27.5 30.3

2014
Non Interest Income

2012

2013

11%

5%

34.8
19.9 22.2 21.0

2014

Operating Cost
Operating Expense (P bn)

Cost to Income (%)

12%

8%
6%

26.7

24.8
29%

30.0
52.3

30%

61.7

50.9

58.9

53.7

61.2

30%
2012

2013

2014

30%

29%

30%

42%

40%

40%

2.9

2.7

2.4

2012

2013

2014

2012

2013

2014

Cost to Asset (%)

Cost to Asset

Investor Update YTD December 2014

10

Credit Book
Loan Portfolio (P bn)

Corporate Sector

30%

33%

27%
22%

822.7

28%
21%

21%

650.0
15%

535.8

Top Tier

23%

Middle Market

Retail Sector

24%

SMEs

16%

15%

79%
77%
20%

76%

14%
45%

2012

2013

Corporate Loans
Investor Update YTD December 2014

Mortgage

2014

Auto

2013

Retail Loans
11

Credit Card

2014

Personal

Asset Quality
Downward trend in NPL ratio; adequate reserve cover

NPL ratio improving notwithstanding robust growth in loan portfolio

105.2 %

109.3 %

96.0 %
82.3 %

87.9 %

67.5 %

3.8 %

2009

2.5 %

2.1 %

1.8 %

1.5 %

2011

2012

2013

2014

3.1 %

2010

Reserve Cover

Investor Update YTD December 2014

NPL Ratio (Gross 90)

12

Deposits

Deposits grew by 19% to Php 1.2 tn (US$ 26.5bn)

Demand deposits +11%; Savings deposits +22%

Time deposits +19%

Low cost float deposits at 69% of total deposits

Deposits per Currency (P bn)

Deposits Breakdown (P bn)

19%
23%
18%

802.3 B

19%

1.2 T

988.6 B

31%

18%

31%

802.3 B

988.6 B

13.6%

13.2%

14.8%

39%

43%

1.2 T

23%

52%

51%

85.2%

19%

18%

17%

2012

2013

2014

Demand
Investor Update YTD December 2014

Savings

2012

2013

Peso

Time
13

86.4%

86.8%

2014

FDCU

Capital Position

Full adoption of Basel III in January 2014

Minimum CAR at 10% and CET1 at 6%

14.8
14.0

13.7
13.0

13.6
12.7

12.2

866
706

701
564

97

129

69

95

Conso-2013

Conso-2014

Parent-2013

Parent-2014

Qualifying Capital

Investor Update YTD December 2014

Risk Weighted Assets

14

CAR %

CET1 %

Credit Ratings
Moodys

Fitch Ratings

Capital Intelligence

(Dec 2014)

(Apr 2015)

(Dec 2014)

Bank Financial
Strength Rating

C-(Baa2)

Local Currency
Deposits

Baa2/Prime-2

BBB-

Foreign Currency
Deposits -LT

Baa2/Prime-2

BBB-

Outlook

Stable

BBB

Stable

Baa2

Investor Update YTD December 2014

BBB

BBB-

15

BPI Credo

Investor Update YTD December 2014

16

Thank you.
Investor Update
As of December 31, 2014

CONFIDENTIAL