BDO and Philippine Banking Looking Back 2 Banco De Oro early - PowerPoint PPT Presentation

5 October 2017 BDO and Philippine Banking

Looking Back 2

Banco De Oro early 1990s 1967 Aurora Boulevard, Cubao, Quezon City 3

―The lady who started it all‖ 1967 4

Industry Ranking in Total Assets 1997 U/KBs P bn 1 MBT 247 2 PNB 242 3 BPI 166 4 LBP 156 5 PCIB 152 6 FEBTC 144 7 Citi 119 8 BA 109 9 RCBC 103 10 EBC 102 20 BDO 39 5

Getting Started Banco De Oro circa 1997 Ortigas Center 1967 6

―To be the preferred bank in every market we serve ” 7

Milestones • Expansion through organic growth and M&As KB license Est. as Acme Savings Bank Assets P13 BN Acquired by SM Group 1967 1976 1994

Milestones • • Expansion through organic growth and M&As Expansion through organic growth and M&As Acquired 1st e- Bank’s banking business Merged with Dao Heng Bank Philippines P234 BN P149 BN KB license Est. as Acme P36 BN Savings Acquired UOB Philippines’ branch banking business Bank P121 BN P77 BN Acquired Banco Santander Philippines U/KB license Assets P13 BN IPO Acquired by SM Group 1967 1976 1994 1996 2001 2002 2003 2005 Niche Strategy

Industry Ranking in Total Assets 1997 U/KBs P bn 1 MBT 247 2 PNB 242 3 BPI 166 4 LBP 156 5 PCIB 152 6 FEBTC 144 7 Citi 119 8 BA 109 9 RCBC 103 10 EBC 102 20 BDO 39

Industry Ranking in Total Assets 1997 U/KBs P bn 2002 U/KBs P bn 1 MBT 247 1 MBT 434 2 PNB 242 2 BPI 332 3 BPI 166 3 EPCI 261 4 LBP 156 4 LBP 248 5 PCIB 152 5 Citi 217 6 FEBTC 144 6 PNB 186 7 Citi 119 7 RCBC 156 8 BA 109 8 DBP 151 9 RCBC 103 9 BDO 120 10 EBC 102 10 CHIB 106 20 BDO 39

Industry Ranking in Total Assets 1997 U/KBs P bn 2002 U/KBs P bn 2006 U/KBs P bn 1 MBT 247 1 MBT 434 1 MBT 642 2 PNB 242 2 BPI 332 2 BPI 578 3 BPI 166 3 EPCI 261 3 LBP 361 4 LBP 156 4 LBP 248 4 EPCI 344 5 PCIB 152 5 Citi 217 5 BDO 306 6 FEBTC 144 6 PNB 186 6 PNB 245 7 Citi 119 7 RCBC 156 7 DBP 236 8 BA 109 8 DBP 151 8 RCBC 227 9 RCBC 103 9 BDO 120 9 Citi 211 10 EBC 102 10 CHIB 106 10 UBP 184 20 BDO 39

Milestones • Expansion through organic growth and M&As Merged with Equitable PCI Bank. Acquired Amex Savings Bank Philippines Acquired 1st e- Bank’s banking business Merged with Dao Heng Bank Philippines P234 BN P149 BN P617 BN KB license Est. as Acme P36 BN Savings Acquired UOB Philippines’ branch banking business Bank P121 BN P77 BN Acquired Banco Santander Philippines U/KB license Assets P13 BN Acquired by SM Group 1967 1976 1994 1996 2001 2002 2003 2005 2007 Full-Service Bank Strategy

Milestones • Expansion through organic growth and M&As Joint Ventures with Nomura Securities, and Mitsubishi Motors Phils./Sojitz/ JACCS; Acquired exclusive franchise of Diners Club Int’l and full control of Generali Pilipinas Life (renamed as BDO Life Assurance) P2 TN Acquired Rural Bank of San Juan’s banking business P2.3 TN P1.9 TN Merged with Equitable PCI Bank. Acquired Amex Savings Bank Philippines Acquired One Network Bank P862 BN Acquired 1st e- Bank’s banking business P802 BN P1.2 TN Acquired Citibank Merged with Dao Heng Savings, DB Trust Bank Philippines and Real Bank P234 BN P149 BN Acquired GE Money Bank P617 BN KB license Est. as Acme P36 BN Savings Acquired UOB Philippines’ branch banking business Bank P121 BN P77 BN Acquired Banco Santander Philippines U/KB license Assets P13 BN Acquired by SM Group 1967 1976 1994 1996 2001 2002 2003 2005 2007 2008 2009 2012 2014 2015 2016 Full-Service Bank Strategy

Industry Ranking in Total Assets 1997 U/KBs P bn 2002 U/KBs P bn 2006 U/KBs P bn 1 MBT 247 1 MBT 434 1 MBT 642 2 PNB 242 2 BPI 332 2 BPI 578 3 BPI 166 3 EPCI 261 3 LBP 361 4 LBP 156 4 LBP 248 4 EPCI 344 5 PCIB 152 5 Citi 217 5 BDO 306 6 FEBTC 144 6 PNB 186 6 PNB 245 7 Citi 119 7 RCBC 156 7 DBP 236 8 BA 109 8 DBP 151 8 RCBC 227 9 RCBC 103 9 BDO 120 9 Citi 211 10 EBC 102 10 CHIB 106 10 UBP 184 20 BDO 39 2007 U/KBs P bn 1 MBT 707 2 BDO 621 3 BPI 617 4 LBP 383 5 DBP 241 6 PNB 240 7 RCBC 239 8 Citi 211 9 UBP 187 10 CHIB 175

Industry Ranking in Total Assets 1997 U/KBs P bn 2002 U/KBs P bn 2006 U/KBs P bn 1 MBT 247 1 MBT 434 1 MBT 642 2 PNB 242 2 BPI 332 2 BPI 578 3 BPI 166 3 EPCI 261 3 LBP 361 4 LBP 156 4 LBP 248 4 EPCI 344 5 PCIB 152 5 Citi 217 5 BDO 306 6 FEBTC 144 6 PNB 186 6 PNB 245 7 Citi 119 7 RCBC 156 7 DBP 236 8 BA 109 8 DBP 151 8 RCBC 227 9 RCBC 103 9 BDO 120 9 Citi 211 10 EBC 102 10 CHIB 106 10 UBP 184 20 BDO 39 2007 U/KBs P bn 2008 U/KBs P bn 1 MBT 707 1 BDO 808 2 BDO 621 2 MBT 758 3 BPI 617 3 BPI 658 4 LBP 383 4 LBP 434 5 DBP 241 5 DBP 291 6 PNB 240 6 PNB 277 7 RCBC 239 7 RCBC 270 8 Citi 211 8 UBP 208 9 UBP 187 9 CHIB 207 10 CHIB 175 10 Citi 188

Industry Ranking in Total Assets 1997 U/KBs P bn 2002 U/KBs P bn 2006 U/KBs P bn 1 MBT 247 1 MBT 434 1 MBT 642 2 PNB 242 2 BPI 332 2 BPI 578 3 BPI 166 3 EPCI 261 3 LBP 361 4 LBP 156 4 LBP 248 4 EPCI 344 5 PCIB 152 5 Citi 217 5 BDO 306 6 FEBTC 144 6 PNB 186 6 PNB 245 7 Citi 119 7 RCBC 156 7 DBP 236 8 BA 109 8 DBP 151 8 RCBC 227 9 RCBC 103 9 BDO 120 9 Citi 211 10 EBC 102 10 CHIB 106 10 UBP 184 20 BDO 39 2007 U/KBs P bn 2008 U/KBs P bn Jun-17 U/KBs P bn 1 MBT 707 1 BDO 808 1 BDO 2,472 2 BDO 621 2 MBT 758 2 MBT 1,972 3 BPI 617 3 BPI 658 3 BPI 1,709 4 LBP 383 4 LBP 434 4 LBP 1,485 5 DBP 241 5 DBP 291 5 PNB 818 6 PNB 240 6 PNB 277 6 SECB 774 7 RCBC 239 7 RCBC 270 7 CHIB 654 8 Citi 211 8 UBP 208 8 UBP 549 9 UBP 187 9 CHIB 207 9 RCBC 537 10 CHIB 175 10 Citi 188 10 DBP 536

Highlights: 1997 - 2017 15 companies acquired by or merged with BDO 10 capital raising activities totaling more than P209 billion* 24 note and bond issues with an aggregate amount of almost P202 billion Note: * Including IFC loan conversion into equity 18

Where are we now? 19

Industry Ranking • No. 1 among Philippine banks Total Assets Gros oss Custome omer r Loans ns (in PHP billions) (in PHP billions) 2,472 BDO Market Share – 18% BDO Market Share – 22% 1,592 1,972 1,709 1,485 1,113 1,074 818 774 654 549 537 536 503 436 401 336 324 260 205 MBT BPI LBP PNB SECB CHIB UBP RCBC DBP MBT BPI LBP PNB CHIB SECB RCBC UBP EW Customer omer Deposits osits Assets Unde der r Management (in PHP billions) (in PHP billions) 1,980 1,021 BDO Market Share – 36% BDO Market Share – 18% 1,462 1,434 1,319 595 436 625 554 435 383 380 345 175 120 111 91 88 81 51 BPI MBT LBP SCB CHIB RCBC PNB UCPB SECB MBT BPI LBP PNB CHIB UBP RCBC SECB DBP Source: Company data, consolidated statements of condition (SOC). Ranking as at 30 June 2017 20 Note: Financials prepared by banks under BSP’s SOC requirements differ slightly from reported financials under SEC guidelines due to certain differences in accounting rules requested by the two authorities

Business Franchise • Market-leading positions in almost all business lines #1 #1 #1 #1 #1 Customer Credit Assets Under Deposits Remittances Loans Cards 1 Management Leading Trade Major Player in Services Provider 2 Cash Management 3 #1 #1 #1 #2 #1 Insurance Investment Private Rural Leasing & Brokerage 5 Banking 4 Banking Banking Finance Notes: 1 In terms of cardholder base, merchant acquiring gross billings, and credit card receivables 2 According to The Asset, & Asian Banking and Finance 21 3 According to The Asian Banker, Asian Banking and Finance, Alpha South East Asia 4 In terms of corporate issuances 5 Among insurance brokers in terms of premiums produced and commissions earned

Market Reach • Wide and extensive coverage in key areas SEA, China, HK, Taiwan, North Europe - 12 Korea & Japan - 11 America - 3 11 Remittance Offices 1 Full-service Branch 1 Representative Office Remittance Offices 6 Remittance Offices 4 Representative Offices Middle East - 1 Representative Office Philippines - 1,159 Branches BDO ONB Total 27 International Offices Luzon 318 6 324 Metro 521 1 522 Manila Visayas 115 16 131 Mindanao 80 102 182 Total 1,034 125 1,159 Branches As of 2 Oct 2017 22

Total Shareholder Return* vs PSE Index From To BDO PSEi PSEi (Php) May 2002 (BDO IPO) Sep-17 16.3% 12.5% Dec 2006 (EPCI merger Sep-17 13.6% 8.3% announcement) based on the closing price of P130.70 as of Sept. 29, 2017 Note 23 * On an annualized basis , based on the closing price of P130.70 as of Sept. 29, 2017; adjusted for corporate actions

―Genius is 1% inspiration, 99% perspiration‖ - Thomas Alva Edison 24 24

The Sy Family Our number 1 supporter, primary financier and most vocal cheerleader 1967 25

BDO Board of Directors Our guiding light and moral compass 1967 26