RIZAL COMMERCIAL BANKING CORPORATION

Transcription

RIZAL COMMERCIAL BANKING CORPORATION
STRICTLY CONFIDENTIAL
CONTENTS
1
INTRODUCING
1
RCBC
2
2
THE
A MARKET
7
3
STRATEGIC INITIATIVES AND FINANCIAL OVERVIEW
10
4
STRATEGY
36
APPENDIX
A
FINANCIAL INFORMATION
44
PAGE 1
INTRODUCING RCBC
PAGE 2
RCBC AT A GLANCE
RCBC is a leading financial services provider in the Philippines
Background
Key statistics (2013)
Incorporated on 4 August 1960 as Rizal Development Bank and received
approval to operate as a commercial bank in December 1962
1962. RCBC is
currently the 5th largest private domestic bank in the Philippines by assets.
Total assets
PHP421.6 bn
USD9.50bn
Net loans
PHP214.6 bn
USD4.83bn
Presence
Deposits
PHP296.8 bn
USD6.68bn
Over 130 locations across Asia Pacific, The Middle East, US, Canada, and
Europe
Total shareholder’s equity
PHP44.9 bn
USD1.01bn
Net income
PHP5.3 bn
USD119mn
Tier 1
15.95%
Total CAR
16.52%
ROAA
1.39%*
ROE
12.16%*
NIM
4.25%*
NPL ratio
1.06%
Cost to Income
61.56%
Services

Corporate, SME and consumer lending
Investment banking
Trust Services and Wealth management
Foreign exchange brokerage
Leasing and Treasury
Credit card retail banking
Microfinance
Bancassurance
Remittances
And other financial services
*Annualized
Awards
Exchange Rate - US$1=PHP 44.40
Best Banking Group in the
Philippines
2012 & 2013
Bestt C
B
Cash
hM
Managementt B
Bank
k
in the Philippines
2012
Domestic Retail Bank of the
Year
2011 & 2012
Philippines’ Overall Best for
Interest rates
in 2012
Philippines SME Bank of the
Year
2012
Best Domestic Private Bank in
the Philippines
Other statistics
Market cap
(1)
PHP54.9 bn
(USD1.24bn)
Branches
ATMs
435
1,150
Employees
Customers
Moody’s
5,671
5.9 million
Ba2 / stable
2012 & 2013
(1): Bloomberg as of 30 September 2013
PAGE 3
KEY MILESTONES IN THE RCBC STORY
RCBC has an extended history in Philippines going back more than 50 years
1960
Began operations as a private devt.
Bank under the name Rizal
Development Bank
1986
Successful listing of RCBC
shares on the stock exchange
2000
Acquired 67% stake
in Bankard Inc.
2008
Acquired Merchants Bank
to kickstart
microfinance business
in Mindanao
1973
Formed alliances with Continental
Illinois Bank and UFJ (Sanwa Bank)
1960
1965
1962
Received approval
from BSP to
operate
as a commercial
bank
under its present
name
1970
1985
Continental Illinois
Bank
sold its
shareholding to
UFJ (Sanwa Bank)
1975
1980
1996
RCBC Savings Bank
was incorporated to
provide
retail/consumer
Banking services to
its
target clientele
1985
1998
Acquired
Capitol
Development
Bank
1990
1995
2006
UFJ (Sanwa
Bank)
disposed entire
Shareholding to
Spinnaker
2000
2005
2009
Spinnaker sold its
entire
stake back to RCBC
and the Yuchengco
Group
Acquired JP Laurel
Rural
Bank in Batangas
2010
Granted expanded
derivatives license which
allows RCBC to conduct
a full range of derivative
transactions
2010
2011
Formed
alliances
with IFC
and CVC
Capital
Partners
2011
2012
2012
Acquired
First Malayan
Leasing
and Finance
Corporation and
its subsidiary
Malayan Rental
RCBC is the fifth largest private domestic commercial bank in the Philippines by assets as of end-2013(1)
Source: (1) Bangko Sentral ng Pilipinas (BSP)
PAGE 4
RCBC’S ORGANIZATION STRUCTURE
RCBC is the banking arm of the Yuchengco Group of Companies, which owns a network of
companies engaged in a wide range of financial and non-financial services.
Pan Malayan Management and Investment Corp.
g Company
p y
Holding
RCBC
MICO Equities
GPL Holdings Corp.
Universal Bank
Non-life Insurance
Holding Company
Life Insurance
Holding Company
Malayan Insurance Co., Inc.
(#1 Non-life Insurance
Company in the Philippines)
Sunlife GREPA Financial,
Inc.
(Sunlife Ownership – 49%)
House of
Investments, Inc.
Holding Company
AY Foundation, Inc.
Corporate
Philanthropic Arm
Mapua Institute of
Technology
EEI (Construction Co.)
Honda Cars Philippines
Isuzu Philippines
RCBC Capital
Corporation
RCBC Savings
Bank
RCBC Intl
Finance
Investment Bank
Thrift Bank
Hong Kong
Financing
Company
RCBC Securities
C
Corporation
ti
Securities
Brokerage
RCBC Bankard
S i
Services
Corporation
RCBC
IInvestment
t
t Ltd
RCBC
North America
Inc.
RCBC
Telemoney
Europe
RCBC Forex
Brokers
Corporation
Rizal Micro Bank
RCBC Leasing
US Remittance
Company
European
Remittance
Company
Foreign
Exchange Broker
Microfinance
Thrift Bank
Leasing
Company
RCBC Rental
Rental Company
Remittance
Credit Card Services
Provider
PAGE 5
RCBC’S VALUES
Vision
To be the Most Admired and Trusted Financial Services Group
in the Philippines
Success factors
RCBC invests in BOTH people and technology
Hire the best talent and develop them over their career
Hire globally
competitive people
Invest in training
human capital
Multiple electronic channels to continuously improve cost
efficiency and speed
Mobile
Banking
ATM
Phone
Banking
Internet
Banking
Bills
Payment
Point-ofsale
Best practices / culture change
PAGE 6
THE MARKET
PAGE 7
THE PHILIPPINE MARKET
Strong economic and demographics support overall growth in the Philippines
The market

12th most populous nation in the world

96 mn Filipinos

56%
6% are less
l
than
h 25
2 yrs old;
ld 71%
1% are below
b l
35
3

10.4 mn less than 4 yrs old

132 mn Filipinos
Fili i
b
by 2025

12 mn computers; 33 mn Facebook users

5 mn with broadband and growing
Drivers

Banking tomorrow’s “Middle Class”

Highly underpenetrated banking market, with
approximately 78.5% of households without deposit
accounts

$21 bn in Overseas Filipino Worker (OFW) remittances
in 2012

37% of families have an OFW (survey of 1,000
respondents); 11 mn Filipinos working abroad

$13 bn
b in
i B
Business
i
P
Process O
Outsourcing
t
i (BPO) sector
t
revenues in 2012

23 mn ATM users

World’s biggest destination for call center operations
110 mn cellular phone users
Sources: Bangko Sentral ng Pilipinas (BSP), World Bank, Department of Science and Technology, Business Process Outsourcing Association of the Philippines (BPAP), Globe Telecom, PLDT, The Market, National
Statistics Coordination Board (NSCB), National Statistics Office (NSO)
PAGE 8
PHILIPPINE BANKS OUTLOOK
Banking sector outlook is positive supported by strong economic backdrop and operating
environment
Philippine
Phili
i banking
b ki
sector
t is
i robust
b t and
d poised
i d for
f further
f th
growth

Credit expansion to continue supported by strong economic and corporate
earnings
i

Non-performing loans in Philippine banks have been declining in the past 10
years, with the NPL ratio at 1.87% as of end-2012 from a high of 18% in 2002.
With improved asset quality
quality, potential upside in bottom
bottom-line
line growth from lower
provisions
Among the strictest regulatory requirements in Asia

Under the BSP Guidelines, 8.5% CET 1 and 10.0% Tier 1 (both with 2.5% capital
conservation buffer included) to be implemented January 2014

Strict interpretation of Basel III standards ensures adequate capitalization for
growth
th
Source: Bangko Sentral ng Pilipinas (BSP)
PAGE 9
STRATEGIC INITIATIVES AND
FINANCIAL OVERVIEW
PAGE 10
STRATEGIC INITIATIVES UNDER BASEL 3 REGIME
A. Invest in IT
B Establish broad distribution channel
B.
C. Diversify loan portfolio
D. Execute risk actuarialization
E S
E.
Secure funding
f di position
iti
F. Think ASEAN
PAGE 11
INVEST IN IT
RCBC developed a scalable and nimble “Core Banking Platform” through major
investments in IT
Oracle e-Business Platform
IBM Enterprise Servers
Banking transformation technology & software solutions
PAGE 12
INVEST IN IT
IT investments provide the tools to enhance RCBC’s platform
Highly scalable banking platform

Given the strength of its platform, RCBC is able to increase its customer base
without incurring incremental costs

RCBC can potentially increase its current 5.9 million customers Æ 20 million
customers without additional investment
With flexibility afforded by IT

Ability to finely segment customer base and provide personalised services and
support
pp

Real-time information available to map customer needs

Capability to increase exposure to customers and engage in cross-selling
pp
opportunities
PAGE 13
INVEST IN IT
Invest in Mobile Banking
Mobile banking services to serve every market
segment
First local bank to be accredited by Apple to
publish mobile banking applications on its
devices
High-end: Apps for iOS
and Android
Mid-level: I-Mobile
Low-end: SMS Banking
First local bank to equip branch managers with
Ipad as a planning tool
PAGE 14
INVEST IN IT
INTERNET BANKING TRANSACTIONS
3 000 000
3,000,000 2,500,000 2,500,000 1,877,480 2,000,000 1,457,354 1,500,000 950,271 1,000,000 675,387 CAGR =
40.61%
500,000 ‐
2009
2010
2011
2012
Proj 2013
PAGE 15
INVEST IN IT
MOBILE INTERNET BANKING TRANSACTIONS
400,000 360,000 350,000 300,000 250,000 200,000 150,000 116,163 100,000 50,000 ‐
220 733 2010
2011
2012
Proj 2013
Proj 2013
PAGE 16
SECURE FUNDING POSITION
Increasing growth and proportion of CA/SA deposits serves to lower overall
funding costs
Customer deposits
(PHP
bn))
p
(
400
350
118
300
112
250
111
117
116
200
62.2%
109
150
106
56.5%
98
90
43.0%
44.3%
44.4%
47.5%
57.1%
50.6%
186
157
100
50
0
94
108
134
130
58
67
76
10
11
11
11
12
10
11
27
33
2006
2007
2008
2009
2010
2011
2012
2013
2014F
Demand
65.0%
Savings
Time
CASA to Total
PAGE 17
THINK ASEAN
Strong economic and demographics support overall growth in the Philippines
The Philippine market
96
mn Filipinos
47%
are aged 15-45 years old
11.2mn
less than 5 yrs old
$224
$
Billion G
GDP at C
Current Market
Prices
$
1
1.3
3 Billion FDI Inflows
15%
of mobile phone users are
smartphone users
The ASEAN market
604
49
mn total ASEAN population
% are aged 15-45 years old
55.3mn
less than 5 yrs old
$2.2
Trillion GDP at Current Market
Prices
$
114 Billion FDI Inflows
75-87%
of mobile phone users are
smartphone users (Hong
Kong, Singapore, Malaysia, Australia)
PAGE 18
HIGHER NII AND SERVICE FEES
Gross Income Breakdown
2012 Actual
P 22.82 B
2013 Unaudited
P 23.04 B
PAGE 19
HIGHER NII AND SERVICE FEES
Service Fees Breakdown
2012 Actual
P 2.08 B
2013 Unaudited
P 2.39 B
PAGE 20
QUALITY EARNINGS
RCBC is the leader among its larger peers in terms of NIMs; cost efficiency also supports profitability
Leading position among peers
(As of 3Q 2013)
PAGE 21
SUSTAINABLE PORTFOLIO QUALITY
RCBC has one of the lowest NPL ratios in the sector and prudent loan loss coverage
NPL ratio on a downward trend and coverage ratio continues to increase
Industry average NPL ratio: 2.6% as of September 2013
120.00%
3.75%
3.10%
100.00%
80.00%
60.00%
4.00%
3.50%
102 10%
102.10%
97.30%
90.69%
3.00%
2.50%
81.97%
71.98%
1.85%
2.00%
1.55%
1.14%
40.00%
1.50%
1.00%
20.00%
0.50%
0.00%
0.00%
2009
2010
2011
NPL Coverage
2012
3Q13
NPL Ratio
PAGE 22
RCBC THIRD PARTY RECOGNITIONS
RCBC has been recognised by various third party organisations for business excellence
World Finance
— Best Banking Group in the Philippines - 2013
— Best Banking Group in the Philippines – 2012
— Best Commercial Bank in the Philippines – 2011
Asiamoney
— Joint #1 Best Liquidity and Market Support for Credit - 2011
2011
— Best Domestic Provider for Interest Rates – Philippines -2011
— Best Domestic Provider for Credit – Philippines - 2011
— Best Pricing and Execution Capabilities for Interest Rates - 2011
— Best Interest Rates Research and Market Coverage - 2011
— Best Sales Service in Interest Rates Derivatives - 2011
— Best Domestic Provider of FX Services in the Philippines (as voted by corporates) - 2011
pp
((as voted by
y Financial Institutions)) -2011
— Best Domestic Provider of FX Services in the Philippines
— Best Domestic Provider of FX Prime Broking Services in the Philippines (as voted by corporates) - 2011
— Philippines’ Overall Best for Interest Rates- 2012
— Best Domestic Private Bank in the Philippines 2012
— As voted by HNMIs with US$1 – 5 mn AUM #1
— As voted by HNWIs with US$5.01 – 25 mn AUM #1
— Best for Interest Rate Derivatives – 2012
— Best Market Coverage – 2012
— Best Interest Rate Research -2012
Asia Banking & Finance
— Philippine Best Retail Bank of the Year – 2011
— Philippine Best Bank Website – 2011
— Philippines Domestic Technolog
Technology & Operations Bank of the Year – Phone-a-Loan-Program
Phone a Loan Program – 2012
— Domestic Retail Bank of the Year – Philippines – 2012
— Philippine SME Bank of the Year – 2012 and 2013
— Online Banking Initiative of the Year – Philippines – 2013
— Core Banking Initiative of the Year - 2013
Source: Annual report, Company website
PAGE 23
RCBC THIRD PARTY RECOGNITIONS (CONT’D)
50 awards and recognitions
The Asian Banker
-Best Cash Management Bank in the Philippines – 2012
-Best Core Banking Implementation Project – 2012
FinanceAsia
— Best Managed Mid-Cap
Mid Cap Company - 2011
Institute of Corporate Directors
— Silver Award – 2011 Corporate Governance Scorecard for Publicly Listed Companies
Visa
— Best Overall Provider of Visa Prepaid Services in the Philippines for 2011
— Best Performer in Transaction Number Growth, Payment Volume Growth & Cards-in-Force Growth - 2011
p
Entrepreneurship
p
p Awards
Asia Responsible
— Social Empowerment Award – Rizal Microbank - 2013
— Best Green Bank for Southeast Asia – 2011
Global Banking and Finance Review
- Excellence in Enterprise Operational Transformation – 2013
PAGE 24
Celent
— Celent Model Bank: Transaction processing category – 2013
Asian Financial Services Congress 2012
— Best Electronic Banking Website-Philippines - 2012
BizNews Asia
— Platinum Business Icon Award – 2012
— Management Excellence Award – 2012
Baiphil
— Green banking Champion: Earth care program with Centennial Forest – 2013
PAGE 25
Asia CEO Awards
— Most Admired Board of Directors – 2011
PDEx
— Top-10 for Overall Trading Activity - 2012
Bureau of Treasury
— Top-10 Government Securities Eligible Dealers – 2010, 2011, 2012
A i T
Asia
Trailblazer
ilbl
A
Awards
d
— Special commendation for product excellernce (MyWallet) - 2012
PAGE 26
Global Banking and Finance Review
-Best Electronic Banking Website-Philippines - 2013
Asian Financial Services Congress 2012
— Excellence in Enterprise Operational Transformation – 2011
PAGE 27