rizal commercial banking corporation

RIZAL COMMERCIAL BANKING CORPORATION
STRICTLY CONFIDENTIAL
CONTENTS
1
INTRODUCING
RCBC
1
2
2
THE
A MARKET
9
3
STRATEGIC INITIATIVES AND FINANCIAL OVERVIEW
12
4
PERFORMANCE RECOGNITION
APPENDIX
37
FINANCIAL INFORMATION
42
5
STRICTLY CONFIDENTIAL
PAGE 1
1
INTRODUCING RCBC
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PAGE 2
RCBC AT A GLANCE
RCBC is a leading financial services provider in the Philippines
Background
Key statistics (2Q15)
Incorporated on 4 August 1960 as Rizal Development Bank and received
approval to operate as a commercial bank in December 1962. RCBC is
currently the 6th largest private domestic bank in the Philippines by assets.
Total assets
PHP468.72bn
USD10.40bn
Net loans
PHP276.68bn
USD6.14bn
Presence
Deposits
PHP321.92bn
USD7.14bn
Over 130 locations across Asia Pacific, The Middle East, US, Canada, and
Europe
Total shareholder’s equity
PHP62.41bn
USD1.38bn
Services
Net income
PHP2.53 bn
USD56.02 mn





Tier 1 (Basel III)
13.48%
Total CAR (Basel III)
16.88%
ROAA*
1.13%
ROE*
9.28%
NIM
4.19%
NPL ratio
0.89%
Cost to Income
63.25%
2015 Budget Net Income
PHP4.68 bn





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
Awards
Exchange Rate - US$1=PHP45.09
*Annualized
Best Banking Group in the Philippines
2012, 2013 ,2014
Best Cash Management Bank in the
Philippines
2012
Best Domestic Private Bank in the
Philippines
2012, 2013, 2014
Philippines’ Overall Best for
Interest rates
in 2012
Domestic Retail Bank of the Year
2011, 2012, 2014
Philippines SME Bank of the Year
2012, 2014
STRICTLY CONFIDENTIAL
USD103.79 mn
Other statistics (2Q15)
Market Cap
Branches
ATMs
450
1,232
Employees
Customers
Moody’s
6,031
7.0 million
Baa3 / stable
PHP56.14 bn
(USD1.25 bn)
PAGE 3
YGC 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.
Holding Company
RCBC
MICO Equities
GPL Holdings Corp.
House of Investments, Inc.
AY Foundation, Inc.
Universal Bank
Non-life Insurance
Holding Company
Life Insurance
Holding Company
Holding Company
Corporate
Philanthropic Arm
Malayan Insurance Co., Inc.
(#1 Non-life Insurance
Company in the Philippines)
Sunlife GREPA Financial, Inc.
Mapua Institute of
Technology
(Sunlife Ownership – 49%)
EEI (Construction Co.)
Honda Cars Philippines
Isuzu Philippines
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PAGE 4
RCBC SHAREHOLDING 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.
PMMIC &
Yuchengco (YGC)
Affiliates
International
Finance
Corporation
7.7%
51%
Cathay Life
Insurance
Public Float
21.3%
20%
RCBC Capital
Corporation
RCBC Forex
Brokers
Corporation
RCBC Savings
Bank
Rizal Micro Bank
RCBC
Telemoney
Europe
RCBC Leasing
RCBC Intl
Finance
Investment Bank
Foreign Exchange
Broker
Thrift Bank
Microfinance Thrift
Bank
Remittance
Company
Leasing
Company
Hong Kong
Financing
Company
RCBC Rental
RCBC
Investment Ltd
Rental Company
Remittance
RCBC Securities
Corporation
Securities
Brokerage
RCBC Bankard
Services
Corporation
Credit Card Services
Provider
*Operational until March 2014
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PAGE 5
KEY MILESTONES IN THE RCBC STORY
RCBC has an extended history in Philippines going back more than 50 years
1960-1970s
1980-1990s
September 1960
• RCBC is
incorporated and
begins operations in
Rizal
2000s
1962
• Received approval
from BSP to operate
as a commercial
bank under its
present name
Continental Illinois Bank
sold its shareholding to
UFJ (Sanwa Bank)
2006
• UFJ (Sanwa Bank)
disposed entire
Shareholding to Spinnaker
1986
•
Successful listing of
RCBC shares on the
stock exchange
•
RCBC Savings Bank
was incorporated to
provide retail/ consumer
banking services to its
target clientele
•
2013
• Placed additional shares with institutional
investors
• IFC infused additional equity
• Sold stake in RCBC Realty and Bankard
Acquired JP Laurel Rural
Bank in Batangas
2015
2010s
2000s
1980-1990s
1960-1970s
Acquired Capitol
Development Bank and
merged with RCBC
Savings
2012
• Acquired First Malayan Leasing and Finance
Corporation and its subsidiary Malayan Rental
2009
• Spinnaker sold its entire
stake back to RCBC and
the Yuchengco Group
1998
•
2011
• Formed alliances with IFC and CVC Capital
Partners
• Formed Bancassurance partnership with
Sunlife GREPA Financial
2008
• Acquired Merchants Bank
to kickstart microfinance
business in Mindanao
1996
1973
• Formed alliances
with Continental
Illinois Bank and UFJ
(Sanwa)
2010
• Granted expanded derivatives license which
allows RCBC to conduct a full range of
derivative transactions
2000
• Acquired
67% stake in Bankard Inc.
1985
•
2010s
•
Partnership with Cathay Financial Holdings
via Cathay Life Insurance
RCBC is the 6th largest private domestic commercial bank in the Philippines by assets as of June 2015
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PAGE 6
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
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PAGE 7
2
THE MARKET
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PAGE 8
THE PHILIPPINE MARKET
Strong economic and demographics support overall growth in the Philippines
The market

12th most populous nation in the world

100 mn Filipinos

53% are less than 25 yrs old; 71% are below 35

10.4 mn less than 4 yrs old

132 mn Filipinos by 2025

12 mn computers; 33 mn Facebook users

44 mn internet users
Drivers

Banking tomorrow’s ―Middle Class‖

Highly underpenetrated banking market, with
approximately 78.5% of households without deposit
accounts

$24.3 bn in Overseas Filipino Worker (OFW)
remittances in 2014

37% of families have an OFW (survey of 1,000
respondents); 13.5 mn Filipinos working abroad

$18.4 bn in Business Process Outsourcing (BPO) sector
revenues in 2014

23 mn ATM users


World’s biggest destination for call center operations
117 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)
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PAGE 9
PHILIPPINE BANKS OUTLOOK
Banking sector outlook is positive supported by strong economic backdrop and operating
environment
Philippine banking sector is robust and poised for further
growth

Credit expansion to continue supported by strong economic and corporate
earnings.

Non-performing loans in Philippine banks have been declining in the past 10
years, with the NPL ratio at 2.47% as of end-March 2015 from a high of 18% in
2002. With improved asset quality, potential upside in bottom-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) was implemented starting January 2014.

Strict interpretation of Basel III standards ensures adequate capitalization for
growth.
Source: Bangko Sentral ng Pilipinas (BSP)
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PAGE 10
3
STRATEGIC INITIATIVES AND
FINANCIAL OVERVIEW
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PAGE 11
STRATEGIC INITIATIVES IN A BASEL III WORLD
Diversify loan portfolio towards actuarial risk
Build Fee based income
1
2
Achieve
Invest in IT
3
strategic five
year
Establish broad distribution channel
(specifically the ATM channel)
Think ASEAN
(through
relationship with Cathay)
Source: Company information.
goals
4
5
RCBC’s strategic initiatives will help the company to deliver on its five year goals
Source: Company filings.
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PAGE 12
LOAN COMPOSITION
– Increasingly diversified portfolio
2006A
2014A
2018E
SME
12%
Consumer
23%
Corporate
65%
 Focus on cross-selling opportunities with large corporate clients to maximize return on
assets
 Focus on the fast-growing SME and consumer loan sectors, which are relatively untapped
 Benefits from actuarial opportunities
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PAGE 13
LOAN PORTFOLIO & GROSS RETURN ON LOAN
ASSETS
– Loan composition will be further diversified to balance returns and reduce
concentration risk.
2014 Breakdown
2014 Gross Return on Loan Assets
7.53%
SME
12%
6
Consumer
23%
4.12%
Corporate
65%
3
3.44%
0
Corporate
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SME
Consumer
PAGE 14
NET INTEREST MARGIN BY PRODUCT
– One of the lowest NPL ratios in the sector
– Implements prudent loan loss coverage
Actuarial Portfolio (2Q2015)
Interest Rate
NIM
Net NPL
Corporate Loans
4.62%
3.33%
0.00%
SME Loans
4.94%
3.65%
1.16%
Credit Card
28.12%
26.83%
3.29%
Auto Loans
10.60%
9.23%
1.81%
Mortgage Loans
8.22%
6.86%
1.93%
50.89%
48.85%
3.50%*
Consumer Loans
Microfinance
*Portfolio-at-Risk>1-day
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PAGE 15
RCBC SAVINGS BANK LOAN PORTFOLIO MIX
2Q15
2Q14
CTS
1,840
4%
PL/SL
668
1%
SME
1,912
4%
RHL
26,053
53%
OTHERS
1,252
3%
AUTO
17,136
35%
Total Loan Portfolio – 48,861M
STRICTLY CONFIDENTIAL
PL/SL
673
CTS 1%
890
1%
SME
2,281
4%
RHL
31,252
55%
OTHERS
1,522
3%
AUTO
20,418
36%
Total Loan Portfolio – 57,036M
PAGE 16
LOAN GROWTH BY SEGMENT
– Successfully executed SME & consumer loan growth strategy
(YTD ADB PHP’bn)
300
250
200
150
259.7
215.3
2Q14 Mix
2Q15 Mix
growth
Corporate
65%
66%
20%
SME
12%
12%
29%
Consumer
23%
22%
17%
12%
11%
23%
100%
100%
21%
58.3
49.8
29.7
23
100
171.4
142.3
Mortgage
50
Total
0
2Q14
Corporate
2Q15
SME
Consumer
* Excluding Interbank Loans
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PAGE 17
DEPOSITS
– The bank will add 50 branches in Metro Manila over 2015-2017, which will allow
an increase in low cost deposits relative to total deposits
– 65% of low-cost money in the Philippines are still controlled by corporations /
high net worth individuals that are Manila-based.
2Q15
STRICTLY CONFIDENTIAL
2Q15 + 50 branches in
Metro Manila
PAGE 18
SECURE FUNDING POSITION
Increasing growth and proportion of CA/SA deposits serves to lower overall
funding costs
Customer deposits (PHP bn)
CA/SA to Total Deposits (%)
350
316
297
300
255
250
221
196
200
176
157
150
100
50
68
111
117
112
247
106
62.3%
116
109
50.6%
98
89
43.3%
237
56.5%
120
322
75%
118
70%
63.5%
65%
62.2%
60%
55%
57.1%
50%
47.5%
44.4%
185
41.9%
78
87
105
120
144
196
204
141
40%
0
35%
2006
2007
2008
2009
CA/SA Deposits
STRICTLY CONFIDENTIAL
45%
2010
2011
2012
(Restated) (Restated)
Time Deposits
2013
2014
2Q15
CA/SA to Total Deposits
PAGE 19
GROSS INCOME BREAKDOWN
– Higher and growing Net Interest Income and Service Fees
– Loan composition will be further diversified to balance returns and reduce
concentration risk.
23.12
100.0%
90.0%
80.0%
18.3%
11.7%
70.0%
60.0%
Total (PHP bn)
22.07
11.75
23.09
32.31
7.8%
9.6%
7.4%
5.7%
11.8%
11.9%
12.9%
15.0%
3.9%
2.5%
75.8%
76.8%
2015B
2018E
12.6%
15.1%
12.4%
50.0%
40.0%
30.0%
57.6%
67.8%
63.4%
2014A
2Q15
20.0%
10.0%
0.0%
2013A
Net Interest Income
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Trading & FX gains
Service Fees & Commissions
Other Income
PAGE 20
FEE BASED INCOME BREAKDOWN
Deposit and Branch-Related
YTD June 2015
25%
YTD June 2014
27%
Growth Rate
5%
Credit Card
20%
24%
(2)%
Loan commitments
12%
10%
37%
Trust
8%
10%
(1)%
Debit cards (ATM)
7%
8%
(7)%
Bancassurance
7%
3%
145%
Remittance
6%
10%
(27)%
Prepaid cards (MyWallet)
2%
3%
3%
100%
100%
17%
Total
STRATEGY TO BUILD FEE BASED INCOME
SME: Developing relationships with SME clients (usually family-owned) to increase cross selling / collateral business (i.e. cash
management, consumer loans, insurance, dealership, etc.)
Asset Management : Grow the Trust / Wealth Management business, especially through synergy with Cathay Financial
Client base
 Increase # of customers from 6.9 million today to 12 million in 5 years
 Grow the # of debit cardholders (Mywallet) to increase transactions, including bills payment requirements; increased transaction
volumes will translate to increased fees
 In the long term, the financial condition of debit cardholders will improve and convert to become depositor clients of the bank
ATM Fees
First among Philippine banks to upgrade its ATM switch that would allow the following functions: (a) cardless transactions (b) check
acceptance (c ) POS transactions, and (d) cash acceptance
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PAGE 21
QUALITY EARNINGS
RCBC is the leader among its larger peers in terms of NIMs; cost efficiency also supports profitability
Leading position among peers
4.50%
4.40%
4.30%
4.20%
4.10%
4.19%
4.00%
3.90%
3.80%
3.80%
3.70%
3.60%
3.50%
3.55%
3.40%
3.30%
3.36%
3.20%
3.30%
3.10%
3.22%
3.09%
3.00%
3.00%
2.90%
2.80%
2.70%
2.60%
2.50%
RCBC
Union
Metro
China
PNB
Security
BDO
BPI
(6m15)
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PAGE 22
SUSTAINABLE PORTFOLIO QUALITY
RCBC has one of the lowest NPL ratios in the sector and prudent loan loss coverage
120%
4.0%
100%
3.75%
3.10%
3.5%
102.10%
80%
60%
71.98%
97.35%
81.97%
40%
87.59%
94.05%
96.06%
3.0%
2.5%
2.0%
1.62%
1.5%
1.85%
1.07%
20%
1.0%
0.90%
0.89%
0%
0.5%
0.0%
2009
2010
2011
2012
NPL Coverage
STRICTLY CONFIDENTIAL
2013
2014
2Q15
NPL Ratio
PAGE 23
FUNDING
Strong liquidity position and diversified funding base
Loans (excluding Interbank), deposits and LDR
Funding mix (2Q15)
350
86.0%
82.0%
80.0%
77.3%
75.0%
75.0%
200
72.3%
72.9%
150
69.2%
100
165
164
70.0%
277
259
215
191
186
65.0%
60.0%
50
220
237
255
247
297
316
322
0
2009
2010
2011
Net Loans
STRICTLY CONFIDENTIAL
2012
Debt
15%
85.0%
300
250
90.0%
2013
Deposits
2014
2Q15
LDR (%)
Capital
Funds
13%
Others
3%
Deposits
69%
55.0%
Total funds: PHP 468.72 billion (USD10.40 billion)
PAGE 24
FUNDING by Currency (Parent Bank)
Funding mix (2Q15)
Asset mix (2Q15)
Dollar
33%
Dollar
34%
Peso
67%
Peso
66%
Total funds: PHP 394.47 billion (USD 8.75 billion)
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PAGE 25
FUNDING by Currency (Parent Bank)
Funding mix (2Q15)
Other Peso (Capital, Subordinated
debt, Other liabs) 18%
Other FCDU (Bills Payable,
Senior debt, Hybrid Tier 1) 17%
Peso Deposits (47%)
FCDU Deposits (18%)
Total funds: PHP 394.47 billion (USD 8.75 billion)
Hybrid Tier 1 notes were redeemed in July 2015
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PAGE 26
RCBC STRATEGY – FIVE YEAR PROGRAM
RCBC’s platform is ready to support business expansion through our “5 in 5” plan
Strategy
Maximize
cross-selling
“Five in Five”
Key Objectives




Leverage
scalable and
nimble
technology





Stay customer
centric


Five products for each customer in five years
The more products and services customers buy from RCBC, the
more we know about our customers
Better service leads to more sales
Use technology to provide better service
Decision support systems
Customer analytics - predict next products
Customer needs based on account balances, transaction
history, life events, channel use
Targeted and segmented marketing
Offer bundled products to save time and money
Financial need and consumer need with value
Build loyalty over time, from the initial stages throughout the lifecycle i.e., microfinance
Microfinance
STRICTLY CONFIDENTIAL
Goals
SME
Corporate

12 million customers

6:1 ATM to branch
ratio

Be the lead
relationship

50% of transactions
in e-channels

Cross-sell beginning
with credit card and
mortgage loans

RCBC credit and
debit card in every
RCBC client’s wallet

Grow with our
customers
Conglomerate
PAGE 27
INVEST IN IT
RCBC developed a scalable and nimble “Core Banking Platform” through major investments in
Operations & IT
Oracle e-Business Platform
IBM Enterprise Servers
Banking transformation technology & software solutions
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PAGE 28
INVEST IN IT
2015 CAPEX of P938M
(P500M) Regulatory, Risk and Control
Inititatives, covering EMV
Implementation, ALM, Operational
Risk, Fraud Detection, Internet
Security, and Log Management.

Corporate Governance, regulatory
compliance, better balance sheet
management
Purchase of 100 ATMs
(Php 120 Million)

Wider distribution channel, cost
efficiencies (moving OTC transactions to
electronic)
Novus Project (Php 50 Million) transforming the branch into
paperless banking.

Better Customer Service, Lower cost of
production, CSR component
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PAGE 29
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 7.0 million customers  20 million
customers without additional investment
With flexibility afforded by IT

Ability to finely segment customer base and provide personalised services and
support

Real-time information available to map customer needs

Capability to increase exposure to customers and engage in cross-selling
opportunities
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PAGE 30
INVEST IN IT
Invest in Mobile Banking
Mobile banking services to serve every market
segment
High-end: Apps for iOS
and Android
Mid-level: I-Mobile
Low-end: SMS Banking
Mobile Phone
ATM
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Tablet or
Computer
PAGE 31
INVEST IN IT
INTERNET BANKING
4,000,000
3,397,389
3,000,000
2,438,460
2,000,000
1,000,000
1,457,354
675,387
1,991,513
1,877,480
950,271
CAGR =
38.14%
-
2009
2010
2011
2012
2013
2014
2Q15
NUMBER OF TRANSACTIONS
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PAGE 32
INVEST IN IT
MOBILE INTERNET BANKING
1,000,000
500,000
-
852,295
CAGR =
688.94%
220
733
114,966
2010
2011
2012
351,378
2013
2014
524,219
2Q15
NUMBER OF TRANSACTIONS
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PAGE 33
ESTABLISH BROAD DISTRIBUTION CHANNELS
Branch and ATM Network
2,052
2,000
1,500
1,150
1,202
1,232
1,010
1,000
761
609
500
380
325
471
371
350
389
420
435
450
449
514
0
2008
ATM to Branch
ratio
STRICTLY CONFIDENTIAL
0.87:1
2009
2010
2011
2012
2013
2014
2Q15
2.74:1
2018E
4:1
PAGE 34
ESTABLISH BROAD DISTRIBUTION CHANNELS
RCBC’s holistic approach to distribution extends beyond mobile banking and branches to other
customer touch points and locations
Diversified distribution network
4,500
4,000
3,500
3,970
1,669
3,000
2,500
2,000
937
1,500
1,000
915
920
500
0
876
825
450
RCBC
Metrobank
Branches Mercury Drug
BDO
BPI
LBC Pawnshops
Expansion is supported by RCBC’s advanced IT system and infrastructure
MyWallet
# of Transactions
STRICTLY CONFIDENTIAL
2010
12,726,357
2011
20,124,411
2012
25,872,141
2013
27,634,582
2014
46,109,848
1Q15
7,841,907
PAGE 35
THINK ASEAN
Strong economic and demographics support overall growth in the Philippines
The Philippine market
 100
mn Filipinos
 47%
are aged 15-45 years old
(34%) are aged less than
15 yrs old
The ASEAN market
 622
 49
mn total ASEAN population
% are aged 15-45 years old
 33mn
 169
 $285
 $2.2
$
$
Billion GDP at Current
Market Prices
5.7 Billion FDI Inflows
 15%
of mobile phone users are
smartphone users
STRICTLY CONFIDENTIAL
mn (27%) are aged less than
15 yrs old
Trillion GDP at Current Market
Prices
127 Billion FDI Inflows
 75-87%
of mobile phone users are
smartphone users (Hong Kong,
Singapore, Malaysia, Australia)
PAGE 36
4
PERFORMANCE
RECOGNITION
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PAGE 37
RCBC THIRD PARTY RECOGNITIONS
RCBC has been recognised by various third party organisations for business excellence
World Finance
— Best Banking Group in the Philippines – 2012, 2013, 2014
— Best Commercial Bank in the Philippines – 2011
AsiaMoney
— Best Domestic Private Bank in the Philippines - 2012, 2013, 2014
— Philippines’ Overall Best for Interest Rates - 2012
— Best for Interest Rate Derivatives – 2012
— Best Market Coverage – 2012
— Best Interest Rate Research -2012
— Joint #1 Best Liquidity and Market Support for Credit - 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, 2015
— Best Domestic Provider for FX Options in the Philippines (as voted by corporates) – 2015
— Best Domestic Provider of FX Services in the Philippines (as voted by Financial Institutions) -2011
— Best Domestic Provider of FX Prime Broking Services in the Philippines (as voted by corporates) - 2011
Asia Banking & Finance
— Philippine SME Bank of the Year – 2012, 2014
— Online Banking Initiative of the Year – Philippines – 2013
— Core Banking Initiative of the Year - 2013
— Philippines Domestic Technology & Operations Bank of the Year – Phone-a-Loan-Program – 2012
— Domestic Retail Bank of the Year – Philippines – 2012
— Philippine Best Retail Bank of the Year – 2011, 2012, 2014
— Philippine Best Bank Website – 2011
STRICTLY CONFIDENTIAL
Source: Annual report, Company website
PAGE 38
RCBC THIRD PARTY RECOGNITIONS (CONT’D)
85 awards and recognitions
Bangko Sentral ng Pilipinas
— Outstanding Commercial Bank Respondent on Overseas Filipino Remittances Award - 2014
Retail Banker International
— Product Excellence in Credit Cards - 2014
PDEx
— Top-6 Fixed-Income Brokering Participant - 2014
— Top-10 for Overall Trading Activity - 2012
Asia Responsible Entrepreneurship Awards
— Green Leadership Award – Rizal Microbank - 2014
— Social Empowerment Award – Rizal Microbank - 2013
— Best Green Bank for Southeast Asia – 2011
Celent
— Celent Model Bank: Transaction processing category – 2013
Baiphil
— Green banking Champion: Earth care program with Centennial Forest – 2013
STRICTLY CONFIDENTIAL
PAGE 39
RCBC THIRD PARTY RECOGNITIONS (CONT’D)
85 awards and recognitions
Global Banking and Finance Review
- Excellence in Enterprise Operational Transformation – 2013
Bureau of Treasury
— Top-10 Government Securities Eligible Dealers – 2010, 2011, 2012
Asian Financial Services Congress 2012
— Best Electronic Banking Website-Philippines - 2012
BizNews Asia
— Platinum Business Icon Award – 2012
— Management Excellence Award – 2012
The Asian Banker
-Best Cash Management Bank in the Philippines – 2012
-Best Core Banking Implementation Project – 2012
Asia Trailblazer Awards
— Special commendation for product excellernce (MyWallet) - 2012
STRICTLY CONFIDENTIAL
PAGE 40
RCBC THIRD PARTY RECOGNITIONS (CONT’D)
85 awards and recognitions
FinanceAsia
— Best Managed Mid-Cap Company - 2011
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
Institute of Corporate Directors
— Silver Award – 2011 Corporate Governance Scorecard for Publicly Listed Companies
Asia CEO Awards
— Most Admired Board of Directors – 2011
STRICTLY CONFIDENTIAL
PAGE 41
5
APPENDIX
FINANCIAL INFORMATION
STRICTLY CONFIDENTIAL
PAGE 42
CONSOLIDATED INCOME STATEMENT
(PHP bn)
2006
Net Interest Income
Total Non Interest Income
2007
2008
2009
2010
2011
2012
2013
2014
2Q15
7.26
5.05
8.82
4.38
8.47
4.6
10.27
5.89
10.88
8.41
10.84
10.09
11.40
11.34
13.31 14.97
9.81 7.10
7.45
4.30
Gross Income
12.31
13.20
13.07
16.16
19.29
20.94
22.74
23.12 22.07
11.75
Provision for Loan Losses
Income before Operating
Total Operating Expenses
Income before Tax
Provision for Income Tax
Net Income
Net Income / (Loss) attributable to
Minority Interest
Net Income attributable Parent
Company Shareholders
1.75
10.56
8.05
2.52
0.63
1.89
0.94
12.26
8.17
4.09
0.85
3.24
1
12.07
8.98
3.09
0.92
2.17
2.24
13.91
9.83
4.08
0.75
3.34
3.16
16.13
10.88
5.26
1.00
4.26
2.54
18.40
12.40
6.00
0.92
5.09
2.49
20.26
13.56
6.70
0.75
5.96
2.05 2.51
21.07 19.56
14.47 14.24
6.59 5.33
1.26 0.91
5.33 4.41
1.44
10.31
7.44
2.88
0.35
2.53
0.16
-0.04
-0.02
-0.01
(0.01)
0.03
0.01
0.01 (0.00)
(0.00)
2.05
3.21
2.15
3.33
4.25
5.06
5.95
5.32
STRICTLY CONFIDENTIAL
4.41
2.53
PAGE 43
CONSOLIDATED BALANCE SHEET
(PHP bn)
2006
2007
2008
2009
2010
2011
2012
2013
2014
2Q2015
Cash/Due from BSP/Due from Other Banks
26.45
28.23
28.06
29.2
35.7
46.22
51.88
69.85
75.78
75.29
FVPL/FVTCI
Held to Maturity Investments
Interbank Loans Receivables
Loans-net
Bank Premises, Property & Eqpt. - net
Equity Investments - net
58.91
21
87.93
3.39
2.05
64.58
11.42
105.78
3.5
4.17
26.14
20.67
23.6
140.8
4.03
4.29
45.8
19.96
24.36
140.54
4.75
4.02
70.97
18.5
24.26
139.72
5.34
3.5
87.73
17.97
168.23
6.46
3.61
95.18
4.69
186.22
7.51
3.95
3.29
89.41
20.59
217.37
8.81
0.33
21.00
79.80
0.32
261.25
7.03
0.32
16.48
79.54
276.68
7.40
0.37
9.99
7.76
7.39
5.07
7.3
7.64
6.78
4.58
5.36
4.74
Other Assets
14
13.65
13.28
14.82
14.11
5.94
7.14
7.63
7.05
8.23
Total Assets
223.71
239.1
268.27
288.52
319.4
343.79
363.34
421.87
457.91
468.72
Demand
Savings
Time
Deposit Liabilities
Other Liabilities
Senior Debt
Subordinated Debt
Total Liabilities
9.88
57.98
89.7
157.55
30.65
6.69
5.43
200.32
10.77
66.77
98.39
175.93
23.34
5.65
5.16
210.08
11.13
75.74
109.36
196.23
31.46
6
6.94
240.63
11.03
93.57
115.67
220.28
20.93
5.84
10.93
257.97
11.6
108.41
116.77
236.78
28.93
10.93
10.95
287.58
10.00
134.24
111.04
255.28
30.49
10.91
10.97
307.64
10.57
130.30
105.89
246.76
41.88
21.55
10.99
321.18
28.45
157.07
112.34
297.85
55.89
23.32
377.06
32.20
164.27
119.30
315.76
55.61
23.49
9.92
404.77
35.85
168.43
117.64
321.92
51.13
23.33
9.93
406.30
-0.28
-0.31
-0.04
0
-0.03
0.20
0.03
0.23
0.22
0.02
23.68
223.71
29.33
239.1
27.68
268.27
30.55
288.52
31.85
319.4
35.95
343.79
42.13
363.34
44.58
421.87
52.91
457.91
62.39
468.72
Investment Properties - net
Minority Interest in Subsidiary/Allied
Undertakings
Capital Funds
Total Liabilities & Capital
STRICTLY CONFIDENTIAL
PAGE 44
KEY RATIOS
2011
2012
2013
2014 2Q2015
12.18%
1.39%
4.22%
61.21%
9.23%
1.04%
4.30%
64.51%
2006
2007
2008
2009
2010
Return on Average Capital Funds
Return on Average Assets
Net Interest Margin
Cost-to-Income Ratio
12.64%
1.01%
4.84%
65.36%
12.43%
1.42%
5.00%
61.88%
7.40%
0.87%
4.25%
68.69%
11.95%
1.24%
4.62%
60.86%
14.08% 16.56% 16.07%
1.47% 1.62% 1.70%
4.55% 4.12% 3.93%
56.37% 59.41% 59.61%
CASA to Total Deposits
NPL Ratio
CAR
43.07% 44.07% 44.27% 47.49% 50.68% 56.50% 57.09% 62.28% 62.22% 63.46%
5.62% 5.27% 2.55% 3.75% 3.10% 1.62% 1.85% 1.07% 0.90% 0.89%
20.30% 18.70% 17.30% 18.47% 17.77% 18.52% 17.61% 16.52% 15.37% 16.87%
*9.28%
*1.13%
*4.19%
63.25%
*Annualized
** Basel 3 as of 2014
STRICTLY CONFIDENTIAL
PAGE 45