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BANCO DE ORO UNIVERSAL BANK A BRIEF STUDY

PRESENTED BY

WONDERGIRLS FEAT. JECA PATRICIO

HISTORY • January 2, 1968 Banco de Oro started off as a thrift bank called Acme Savings Bank. • November 1976 Sy Group of Companies owned by Henry Sy acquired Acme and renamed it as Banco de Oro Savings and Mortgage Bank. • Years after BDO became a commercial bank therefore changing its name to Banco de Oro Commerical Bank. • September 1996 The bank’s name has again changed to Banco de Oro Universal Bank and it is still the current name.

HISTORY • 1997 BDO became involved in insurance services and established a subsidiary • 1999 Expanded its insurance services through partnerships with different insurance firms. • March 2000 BDO partnered up with Generali Pilipinas Life Assurance Company and Generali Pilipinas Insurance Company.

MERGERS AND ACQUISITION • June 15, 2001 BDO merged with Dao Heng Bank’s Philippine Subsidiary Expansion of the number of BDO’s branches from 108 to 120. • August 2003 Acquired the local banking unit of Banco Santander became a licensed subsidiary of BDO Unibank.

MERGERS AND ACQUISITION • April 2005 United Overseas Bank sold 66 subsidiaries to BDO. The number of BDO branches rise up to 220. • August 5, 2005 SM investments acquired almost 25% of Equitable PCI Bank • In the following year (2006) SM Group of Companies proposed a merger to Equitable PCI. BDO Unibank stands as the largest bank in of asset in the Philippines.

MERGERS AND ACQUISITION • 2009 Bought GE Money Bank • November 14, 2013 BDO announced its plan to acquire 99.99 percent of Citibank Savings Inc. • February 2014 Announced that the bank has signed an agreement to acquire the trust business of Deutsche Bank’s branch in Manila.

FINANCIAL POSITION

RANK

BANK

ASSETS

2013  In the year 2013, Banco de Oro (BDO) tops Banks Philippines list of Top Banks in the Philippines based on Total Assets as of March of year 2013 despite the decrease in their Total Assets.

1

BDO

2

PREVIOUS RANK

1,219.635

1

METROBANK

801.683

2

3

BPI

761.511

3

4

LANDBANK

737.483

4

5

PNB

537.638

6

6

DBP

327.682

5

7

CHINABANK

317.256

7

8

RCBC

313.200

8

9

UNION BANK

291.747

9

10

SECURITY BANK

252.669

10

FINANCIAL POSITION

• According to BDO’s Condensed Statement of Financial Position as of March 2013, BDO was able to have total resources amounting to Php 1,240,432 which is Php 3,976 lower than BDO’s total assets of Php 1,244,408 back in December 2012. • As expected, as the year 2013 closes, BDO has already exceeded their total assets in the previous year by having a total of Php 1,672,778 of total resources. This is almost Php 500,000 higher than their December 2012 assets.

FINANCIAL POSITION

• Banco de Oro was also named “Best Asian Bank” by Hong Kong-based magazine FinanceAsia. • BDO’s net income after tax is Php 22,646 and it is comprised of Php 56,606 interest income and Php 13,340 interest expense. • BDO authorizes the release of annual dividends on preferred shares at the rate of 6.5% per annum for a total dividend amounting to Php 340 million.

FINANCIAL POSITION

2014  For 2014, Philpad named BDO as the top bank of the Philippines as to assets. Together with Metrobank and Bank of the Philippine (BPI), BDO rounds the top three banks of the country.

Top 10 Best Bank in the Philippines as to Assets 1.

BDO

2.

Metrobank

3.

BPI

4.

Landbank

5.

RCBC

6.

DBP

7.

PNB

8.

Chinabank

9.

Unionbank

10. Security Bank

FINANCIAL POSITION • As of March 2014, the Condensed Statements of Financial Position presented that the total assets of BDO amounts to Php 1,645,360 which is Php 27,418 lower than the December 31, 2013 total assets of the same bank. • Compared to last year’s first quarter total assets of Php 1,240,432, BDO increases its assets by 33%. • Despite the increase of total assets for the year, the comprehensive income is lower compared to the income of BDO during last year’s first quarter.

FINANCIAL POSITION

• The primary reason for the said downfall of income is caused simply by the low income of the said bank. • Banco de Oro declared a cash dividend of Php 0.30 per common share for each quarter in 2014 and they also declared dividends on preferred shares at the rate of 6.5% per annum.

ORGANIZATION UNITS AND FUNCTIONS

• BDO Group Corporate Structure Chart • Company Organizational Chart

ORGANIZATION UNITS AND FUNCTIONS

Board of Directors

President Departments

ORGANIZATION UNITS AND FUNCTIONS

BOARD COMMITTEES AND HIPS

 Executive Committee The main approving body of the Company.  Board Audit Committee Internal and external audit functions.  Corporate Governance Committee Formulate policies and implement corporate governance practices.

ORGANIZATION UNITS AND FUNCTIONS

BOARD COMMITTEES AND HIPS

 Nominations Committee Identify and recommend candidates for appointment as Directors and for other key positions.  Risk Management Committee Develops the Company’s risk policies, appropriate strategies for prevention and/or minimization of impact of losses when problems occur.

ORGANIZATION UNITS AND FUNCTIONS CORPORATE OFFICERS AS OF APRIL 25, 2014

• Henry Sy, Sr. Chairman Emeritus • Teresita T. Sy Chairperson • Jesus A. Jacinto, Jr. Vice Chairman • Nestor V. TaN President & CEO • Edmundo L. Tan Corporate Secretary • Sabino E. Acut, Jr. Assistant Corporate Secretary • Angelita L. Ortega-Cortez Assistant Corporate Secretary & Alternate

ORGANIZATION UNITS AND FUNCTIONS CORPORATE OFFICERS AS OF APRIL 25, 2014

• Pedro M. Florescio III • Marilyn K. Go Treasurer • Estrellita V. Ong

• Rebecca S. Torres Compliance Officer • Evelyn L. Villanueva Officer • Elmer B. Serrano Officer • Ricardo V. Martin

Treasurer Assistant Chief Internal Auditor Chief

Chief Risk Corporate Information

Alternate

BASIC FUNCTIONS/SERVICES • Retail Banking Savings, transactional s, mortgages, personal loans and debit cards. • Loans Personal loans, auto loans, housing loans and small business loans. • Trust funds and Investments Unit investment trust fund, BDO Peso Money Market Funds, Easy Investment Plans.

BASIC FUNCTIONS/SERVICES • Credit Cards • Corporate cash management Collecting, managing and investing a company’s cash. • Remittances Transfer of money by a foreign worker to another individual in his or her home country • Insurance Auto insurance, home insurance, personal accident insurance, travel insurance and life insurance.

SOURCES • https://www.bdo.com.ph • http://en.wikipedia.org/wiki/BDO_Unibank#The_ new_BDO • http://philpad.com/best-banks-in-the-philippines2013/ • http://www.banksphilippines.com/2013/08/topbanks-philippines-assets.html • http://business.inquirer.net/142727/financeasianames-banco-de-oro-best-asian-bank-for-2013

THAT IN ALL THINGS,

GOD MAY BE GLORIFIED!

THANK YOU!