Philippine National Bank · 2020. 11. 20. · PNB Investor Presentation 9M 2020 Author: Bryan...

Philippine National Bank

Company BriefSeptember 2020

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Company Introduction 3

Financial Highlights 9

Board of Directors & Senior Management 13

Awards & Citations 16

About PNB

§ PNB has 716 branches and 1,701 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.

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

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

2019

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%

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

716 branches in the Philippines

1,701* ATMs nationwide

Branch Distribution:

62% outside Metro Manila

As of Sept 2020

* 122 are Cash Accepting Machines (CAMs)

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9M 2019 9M 2020

1,171 1,032

Profitability & Balance SheetNet Income Without Credit ProvisionsIn Php Millions

• Total operating income up by 14%, boosted by solid growth in net interest income & increase in trading and investment securities.

• Net income reached P3,896 M in 9M 2020, 39% 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 were lower in 9M 2020 due to declines in loans and receivables as well as investment securities with the sale and maturities of various investment securities.

9M 2019 9M 2020

7,479 10,836 45% 12%

9M 2020 P&LPNB Consolidated

(in PHP million) 9M 2020 9M 2019 % Change

Interest Income 35,215 37,168 -5.3%

Interest Expense 9,054 13,727 -34.0%

NET INTEREST INCOME 26,161 23,441 11.6%

Fee-Based and Other Income 7,934 6,436 23.3%

Net Service Fees and Commission Income 2,553 2,860 -10.7%

Other Income 5,381 3,576 50.5%

TOTAL OPERATING INCOME 34,095 29,877 14.1%

Admin and Operating Expense 19,999 19,943 0.3%

Income Before Provisions 14,096 9,934 41.9%

Provision for impairment and credit losses 9,028 1,427 532.7%

Provision for Income Tax 1,172 2,102 -44.2%

NET INCOME 3,896 6,405 -39.2%

Return on average equity (ROE) 3.4% 6.1%

Return on average assets (ROA) 0.5% 0.8%

Net Interest Margin (NIM RATE) 3.6% 3.2%

Cost efficiency ratio 66.8% 58.7%

9M 2020 BALANCE SHEETPNB Consolidated

(in PHP million) 9M 2020 9M 2019 % Change

Cash / Due from BSP & Other Banks 150,075 180,170 -16.7%Investment Securities 240,577 284,377 -15.4%

Loans and Receivables 577,095 644,846 -10.5%Property & Equipment 20,224 21,438 -5.7%

Investment Properties 14,526 13,767 5.5%Other Assets 29,300 26,595 10.2%

TOTAL ASSETS 1,031,797 1,171,194 -11.9%

Deposit Liabilities 738,073 820,954 -10.1%

Bonds Payable 64,506 67,830 -4.9%

Bills & Acceptances Payable 41,997 101,193 -58.5%Other Liabilities 31,034 37,565 -17.4%

TOTAL LIABILITIES 875,610 1,027,542 -14.8%

TOTAL EQUITY 156,187 151,954 2.8%

TOTAL LIABILITIES AND EQUITY 1,031,797 1,171,194 -11.9%

Loans/Deposits 78.9% 78.3%

Total CAR 16.4% 14.6%

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Board of DirectorsFlorencia G. TarrielaChairman/Independent Director• Serves as director of multiple PNB subsidiaries• Independent Director – LT Group, Inc.• Independent Director – Eton Properties Phils.

Inc.• Former Undersecretary of Finance

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 European Chamber of Commerce of the Phils., and Phil. Payments and Management Inc.• Member of Asian Bankers Association• 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)

• Trustee of College of Saint Benilde

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 T. 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.

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 BankingSector

Isagani A. CortesEVPChief Compliance Officer

Jose German M. LicupFSVPChief of Staff to the President and CEO

Ruth Pamela E. TanghalVPCorporate Treasurer

Nanette O. VergaraFSVPChief Credit Officer

Socorro D. CorpusSVPOIC - Human ResourceGroup

Manuel C. Bahena, Jr.SVPChief Legal Counsel

Claro P. FernandezSVPHead of Public AffairGroup

Marie Fe Liza S. JaymeSVPHead of Operations Group

Michael M. MorallosSVPHead of the InformationTechnology Group

Rommel B. NarvaezSVPOIC – Marketing and Brand Management Sector

Roland V. OscuroSVPChief InformationSecurity Officer

Joy Jasmin R. SantosFVPChief Trust Officer & Head of Trust Banking Group

Samuel G. LazaroVPOIC – Internal Audit Group

Simeon T. YapFVPChief Risk Officer

Noel C. MalabagSVPHead, Global Markets Group

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Recent Awards

International Finance Awards (2019)“Fastest Growing Bank for Consumer Loans

Philippines 2018”

55th Anvil Awards (2020)“Public Relations Program on a Sustained Basis – Development

Communication” (PNB-PAL Mabuhay Miles Debit Mastercard)

The Asian Banker Leadership Achievement Awards (2020)• “Best Managed Bank during COVID-19 in the Philippines”

• “Best CEO” awarded to President Wick Veloso

Asiamoney Banking Awards (2020)• “Best Bank for Corporate Social Responsibility in the

Philippines”

• Recognized as “Leader for Women”

Recent Awards

Recognized by the Philippine Institute of Corporate Directors (2019) asamong the top-performing publicly listed companies under the ASEANCorporate Governance Scorecard

SSS Balikat ng Bayan Awards (2019)“Best Paying Commercial Bank”

The Asset triple A Country Awards (2019)• “Best Syndicated Loan Award” (Bloomberry Resorts and Hotels syndicatedterm 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”

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.

Disclaimer

Philippine National Bank · 2020. 11. 20. · PNB Investor Presentation 9M 2020 Author: Bryan...

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