Annual Report 2010 - UnionBank of the Philippines

Annual Report 2010
Annual Report 2010
Financial Statements 2010
FOCUS 2020
is our compass to become a top 3 universal bank
by year 2020. FOCUS 2020 centers on five specific
strategic initiatives we are working on with
stronger resolve:
inancial value,
perational excellence,
ustomer franchise,
nionBank brand/experience and
uperior innovation
UnionBank Credo
We are a dynamic and caring team of bold,
smart and engaged experts committed to make
the difference for our customers, shareholders,
community and UnionBankers by creating
meaningful experiences and innovative services
and solutions thereby converting our customers
into advocates.
We Make Da Diff!
CONTENTS
FOCUS 2020/UnionBank Credo
Purpose/Values/Vision
Chairman’s Statement
President’s Report
Genting: The Place to Play
ICTSI: Global Ambition
Liwayway: Oishi and Guanxi
Playa Asya: A Piece of Paradise
Shakey’s: Bonding over Pizza
Starbucks: Shared Planet
Board of Directors
Policy Committee
Senior Vice Presidents
First Vice Presidents
Hot Streak
Community-Based Lending
EIPP Makes a Comeback
The Net Shift
The Long Tail
Giving Goes Social
Responsible Citizens, Responsive Government
Leaders and Achievers
Ironclad Information
Products and Services
New Branches
Brick and Mortar
Corporate Governance
ICAAP
Management Directory
Corporate Information
01
03
04
08
12
14
16
18
20
22
24
30
33
36
38
40
42
44
46
48
50
52
54
56
60
62
66
75
76
77
Purpose
The Bank’s purpose is to connect and enable
communities through Smart Banking in the
spirit of Ubuntu.
Values
Magis
drives a UnionBanker
to be passionate with
execution to
DO More,
DO Better and
DO Greater
to achieve excellence.
Ubuntu
drives UnionBankers
to follow the path
towards engagement with
fellow UnionBankers,
the institution,
our customers
and stakeholders.
Magis combined with Ubuntu will drive UnionBankers
to assert individual expertise yet transcend individual
interests to achieve a higher purpose and Make Da Diff.
Vision
To become one of the top 3 universal banks
in the Philippines.
3
CHAIRMAN’S STATEMENT
One With You
4
2010 was a year of recovery from the depths of what could
be the worse recession since the Great Depression. Economic
expansion from the second quarter of 2009 todate is, principally,
a consequence of aggressive fiscal and monetary actions, partial
nationalization and bailouts of countries and firms, emerging
markets growth, and low base effects. We are still not at peak
levels of economic activity in large swathes of the global economy
and questions remain as to this recovery’s persistence. However,
fears have dissipated and some confidence has returned. We wait
for governments of developed economies to take the next steps
toward normalization and, in anticipation, we have drawn up
scenarios of the economic and business consequences. Managing
risk and volatility will continue to be a major preoccupation.
In the domestic front, we have a new government elected
on new hopes and aspirations for the nation. Some policies of
the past administration will be continued, but new policies and
directions are expected and with them, change.
Through challenging times and through economic cycles,
we maintain our constancy of purpose. We remain mindful of
our purpose to connect and enable communities through Smart
Banking in the spirit of Ubuntu. We also set in motion FOCUS
2020, our 10-year strategic roadmap. FOCUS 2020 is all about
leveraging on the foundations we have built – leveraging our
capital, our branch network, our relationships, our process,
our people, our brand.
With this report, we punctuate our progress over the last
decade.
Financial Value. UnionBank ended its FOCUS 2010 strategy
with a net profit of P5.4 billion. This was 23.8% higher than
P4.3 billion in 2009. Net revenue was also higher at P13.2 billion,
notwithstanding continuous decline in asset yields. Net interest
income increased by 9.5% to P7.1 billion, on expanding earning
assets base and lower funding costs. Non-interest income,
likewise, improved by 4.4% to P6.1 billion, on the back of higher
securities trading gains.
Total resources expanded by 3.5% to P253.0 billion from
P244.4 billion a year ago, growing at a compounded annual
growth rate of 17.7% from end-2000 compared to industry’s
7.6% growth. Gross customer loans expanded by 5.0% to
P70.6 billion, led particularly by the double-digit growth in auto
and mortgage loans. Over the last ten years, total deposits grew
at a compounded annual rate of 23.0% against industry’s 9.0%,
ending 2010 at P192.5 billion. This was marginally lower than
P194.5 billion in 2009, but double our market share at the start
of the decade.
Our profitability ratios strengthened and continued to
exhibit higher performance than industry. Our return on
shareholders’ equity (ROE) at 15.5% and return on assets (ROA)
at 2.2% were better than industry’s 12.7% and 1.4%, respectively.
With our prudential expense management initiatives, we kept
our revenue-to-expense ratio at our target level of 2:1. Gearing
up to Basel III implementation, our capital adequacy ratio
exceeded the 10% regulatory minimum by a wide margin as it
ended at 17.0% from 16.1% last year. In terms of market position,
among private domestic commercial banks last year, UnionBank
was 7th largest in assets; 3rd in ROE; and 2nd in ROA and
revenue-to-expense ratio.
Given UnionBank’s financial performance and growth
potential, coupled with the renewed market optimism, the Bank’s
stock outperformed both the PSE and Financial Index, ending
the year at P59.90 per share from P37.00 in 2009, translating to a
61.9% price appreciation. Following the board approval in January
2011, we declared a cash dividend of Php2.50 per share, an annual
dividend yield of 4.2%. Our price-to-book and price-to-earnings
ratios were at 1.1x and 7.2x, respectively. Earnings per share was at
Php8.35, higher by 23.9%.
Operational Excellence. In support of the Bank’s thrust
to attain high level of quality standards, we pushed further our
technological capabilities to strengthen information security
and integrity. We contracted the services of Shafran Consultancy
Ltd., an Israeli-based security consultancy with over 20 years of
risk management experience, to perform risk assessment and
surveillance audit of our information systems and networks.
We employed document digitization and process
centralization as the backbones that support our drive for
continuous improvement, while unyieldingly focusing our sight
on living the brand, institutionalizing quality, building capacity,
and managing risks. Taking to heart and personally embracing
quality disciplines as a way of life, we re-organized our back
room operations into a Center of Excellence for Financial
Services, General Services and Client Services in accordance with
global best practice on shared-services. We continually capture
images in electronic form to free up physical storage, enhance
information library management, promote load balancing, provide
opportunity for offsite audits, allow faster service delivery, and
foster a “greener” environment. We facilitated online viewing
of Cyber Account Opening Form images for faster processing of
branch EON transactions. We centralized client cash and deposit
pick-up servicing for Makati & Southern Luzon areas to permit
same day booking of funds.
We were once again the first in the Philippine banking
industry to have upgraded the Quality Management System
(QMS) certification obtained by our entire back office operations
in 2008 from ISO 9001:2000 to ISO 9001:2008 standards.
For two consecutive years, we achieved NIL Non-Conformance
rating from TUV Rheinland, a global provider of technical, safety,
and certification services, during its surveillance audit.
Reaping the seeds we planted in 2010, to complement our QMS
certification, we recently achieved another first in the Philippine
banking industry for successfully attaining the ISO 27001:2005
Information Security Management System Certification, attesting
to our unwavering commitment to become an acknowledged
leader and benchmark for service quality, technological
advancement, and operational excellence.
Once more, we maintained 100% audit pass rate for
our entire branch network, 84% of which received an
Excellent score by Internal Audit. We certified two green
belt and eight orange belt candidates, and currently have
more than 40 six sigma on-going projects. We continue to
conduct Thinking Continuous Improvement introductory
courses for rank and file employees and workshops for
officers, enjoining almost 200 more UnionBankers towards
changing practices and modeling behavior. Since its launch
in March 2010, we trained 480 of our branch officers in
the Plan-Do-Check-Act methodology to promote a wellcoordinated approach to continuous improvement. To sustain
the learning momentum and allow quality consciousness to
permeate throughout the Bank, we launched the Six Sigma
website, conducted review classes and project consultations,
and invited quality experts and Six Sigma practitioners as
resource speakers.
Emphasizing the value of working together as a team
in meeting customer requirements, we invited mostly CEOs
and operations managers from our outsourced service
providers to a one-day quality program to assist them with
the use of productivity and performance tools as they, too,
play an active role in our drive to consistently achieve
operational excellence.
Customer Franchise. Dedicated to the delivery of smarter
solutions for our customers, we launched the ePayout Portal and
ePayroll with ePayslip as part of our expanding cash management
product and service offerings. The ePayout Portal allows efficient
processing and approval of Bulk payouts including domestic
and international fund transfers, while the ePayroll allows full
outsourcing of payroll processing with enhanced accuracy and
greater ease.
We penetrated new market segments as we launched four
more BusinessLine loan facilities to assist in the development and
expansion of the entrepreneurial business: BusinessLine for Agri,
Beverage, Feed Dealers, and Franchisees.
Leveraging on our technological capability, we have
developed expertise in customizing credit cards to cater to the
needs of smaller communities. We introduced 11 co-brand/affinity
credit cards.
We culminated the AutoCross Puzzle Promo, conceptualized
with C! auto magazine, by bringing together communities of
car enthusiasts with the crossword winners to participate in
an AutoCross Track Day Event. Connecting more communities
to share in the experience, we supplemented the event with a
Facebook photo exhibit promo, which allowed attendees the
chance to win, while displaying their talent and ingenuity in
photo-album making. These activities demonstrated that your
Bank is not always about serious business, but also focused on
crossing borders and creating off-the-wall fun-filled, relationshipbuilding, and memorable learning experiences for our customers
and the community, for the kids and kids at heart.
We partnered with key car dealers and home developers,
launching flexible programs and promotions, intended to
make one’s dream to have a home and own a car come true.
We, likewise, entered into an exclusive partnership selling
5
CHAIRMAN’S STATEMENT
CHAIRMAN’S STATEMENT
6
arrangement with Mapfre Insular Insurance Corporation in support
of our thrust to develop new channels to more effectively service
needs for auto financing.
Bridging lives separated by space and time, we embraced
the opportunity of being the fi rst Philippine bank and the
16th participant in the world to have been certified live for the
SWIFT Workers’ Remittance Service, allowing cheaper and
quicker cross-border transfers to our “kababayans” coursed
through other certified banks. SWIFT is Society for Worldwide
Interbank Financial Telecommunication, a member-owned
cooperative established in Belgium in 1973 by 239 member banks
and now trusted by more than 9,000 banking organizations,
securities institutions and corporate customers in more than
209 countries to handle millions of fi nancial communication
exchanges daily.
Based on the list of top scorers released by the Institute of
Corporate Directors, we ranked among the silver awardees for
Good Corporate Governance for 2010. The Corporate Governance
scorecard project, participated in by 214 publicly listed
companies, is one of the corporate governance requirements
of the Securities and Exchange Commission. The scorecard
assesses a company’s corporate governance based on disclosure
and transparency, board responsibilities, rights of shareholders,
equitable treatment of shareholders, and role of stakeholders.
We received recognition from Finance Asia in its 10th annual
poll of Asia’s Top Best Managed Companies in the region for Best
Corporate Governance, Best Corporate Social Responsibility, and
Most Committed to a Strong Dividend Policy.
Expanding our presence to serve and connect more
communities, we opened 13 branches, bringing our total to 186.
We added 12 more automated teller machines, ending 2010 with
214. Our customer account base grew by more than seven times
over the decade, ending 2010 at 4.05 million.
UnionBank Brand/Experience. Right at the core of
UnionBank’s DNA is our fervent belief in developing leaders,
building expertise and empowering people to remain relevant
for customers. It has been foremost among our objectives to
strengthen our organizational muscle, through training and
shared-learning, to drive change and create a better tomorrow
for communities of interest and for our stakeholders.
We broadened the scope of the UnionBank University,
our corporate center for learning, covering nine academies and
partnering with around a hundred internal and external training
associates, to provide various functional, leadership, personal
development and management programs throughout the year.
Capitalizing on the strength of our talents in the use of technology,
we launched courses via the e-learning platform to extend and
widen our reach in program delivery. We continue to breed
and hone skills via our Branch, Sales Boot Camps and Cash
Management Product Certifications, and Six Sigma Black, Green
and Orange Belt programs. Your Bank made major investment
in its leaders in 2010 by sending its first batch of executives to
the Leadership for Business Results course at the Asian Institute
of Management. We, likewise, continue to celebrate and honor
extraordinary contributions of UnionBankers in the area of
service delivery, innovation and productivity via our Heroes and
Champions program. We embarked on an employee engagement
initiative, constructing a stage to allow individual talents to shine
and flourish, thereby enabling UnionBankers to Make Da Diff in
the lives of our customers and the communities we serve.
The Marketing Management Development Academy, for
the past two years, sought to enhance Marketing disciplines
through various workshops and mentoring programs. In 2010,
we implemented Executive Panel Sessions to sharpen the thought
process through presentation and discussion of marketing plans
with senior marketing executives, and a Rewards Program to
encourage and recognize marketing excellence.
We continued the customer service enhancement process
at the branch level through periodic Service Clinics, where
participants discuss actual customer service experiences, share
success stories and common concerns, examine results of the
customer satisfaction survey, and define strategies aligned with
our brand attributes of being expert, relevant and convention
challenging. Discussions and agreements reached form a pool of
learnings, which may be imparted throughout the network. In
2010, service clinics were conducted in 110 branches located in
Metro Manila and nearby Luzon areas with a total of
230 participants.
According to telephone surveys conducted from September
to December 2010, covering 2,736 randomly-chosen clients
from a universe of managed accounts in 180 branches or at least
15 respondents per branch, I am pleased to report that results
of the customer satisfaction survey showed improvement in all
three areas: Relationship Managers, Branch Experience, and
Overall Experience with UnionBank. Our call handling rate
further increased to 98% from 95% last year.
We began the second round of The Chairman’s Caravan
by last quarter of 2010, gaining deeper understanding of the
differing business and personal needs, strongly influenced by
the uniqueness and peculiarities of each area we visited.
Taking part in teaching professionalism, structured
thinking process, right discipline and attitude, we took in
30 student trainees to join the Bank’s 6-week Student Mentoring
Program, where they were required to turn textbook knowledge
into real life skills to deliver high-impact projects to their
sponsor-unit.
Staying relevant to the times, we organized a Workplace
Health, Safety and Security Council and invited resource
speakers to conduct orientations on disaster preparedness,
dealing on the subject matter of Earthquake by Phivolcs, Basic
First Aid by Philippine Red Cross, and Fire Safety by Bureau of
Fire Protection. We organized URun, our fi rst ever bank-wide
fun run, participated in by our employees, maintenance and
security personnel, and their families and friends, knowing that
staying physically fit is equally important. Doing our share as
an institution to ensure viability of our environment for future
generations, we appointed a Sustainability Steward for the Bank
and its subsidiaries to develop and implement more responsible
and sustainable workplace practices.
Moving forward, we will work further on establishing
emotional connections and living our brand, for it is foremost by
customer advocacy that we may discover new ways to enrich
the UnionBank experience and draw us even closer to being one
with you.
Superior Innovation. We successfully produced the GSIS
Unified Multi-Purpose ID (UMID) card, a fi rst of its kind in
the Philippines, and delivered over one million of these cards
in less than six months. The UMID card serves as an ID card
for individual-members of GSIS, Pag-IBIG, and Philhealth, and
contains a common reference number that may be used in dealing
with these government agencies.
We piloted a Sprint Express Teller Terminal in selected
branches in the Cebu province that provides self-service
functionality for various services, cutting the customer’s waiting
time in half, thus effectively improving processing time.
We utilized SMS Messaging to facilitate communication and
access to information, minimizing the need for customers to visit
or call the Bank. The messaging service is now being provided to
credit card clients, GSIS cardholders, Pinoy Money Card clients,
and for returned check notices. We engaged in Search Engine
Optimization to address the call of online communities or the
“Netizens” for immediate availability of reliable and responsive
banking and investment-related information. Responding to the
rapid evolution of the social network as the preferred channel of
communication, we continue to utilize our Facebook page as an
alternative customer service channel for our followers to freely
share their views. Since its launch in late 2009, we have more
than 12,000 fans, afforded the power to encourage involvement,
stimulate idea-creation, and propagate change. Riding on the
growing acceptability of online retailing, we empowered the
online entrepreneurs through the use of our EON cyber account
as the gateway to receive payments.
Cognizant of our customers’ requirement for transacting
through all modes and forms, we introduced GCashLink, a
facility that enables easy transfer of funds from GCash Wallet to
UnionBank account by use of mobile phone. Driven by the value
created by our OneHub platform, we conceptualized the OneHub
Customs Duties and Taxes, an eSettlement facility for the online
viewing and payment of customs duties and taxes, stepping up
to play a role in the government’s campaign for transparency
towards upliftment of our standards to international trade
practices.
Recognizing the need for man to reach out and touch the
lives of others, we embarked on the U-Share project to provide
non-profit organizations with online and mobile donation
channels to receive monetary blessings from individuals and
corporations from anywhere around the world. True to our
purpose of connecting communities, we help them leverage
social media tools to increase emotional awareness and
engagement while professing Smart Banking – convenience in
monitoring and disbursing their funds.
Corporate Philanthropy and Social Responsibility
(CPSR). 2010 is the milestone for The UnionBank Learning
System: Developmental Reading Integrated with Values
Education for Good Citizenship, our flagship CPSR program.
The program reached numbers and crucial impact beyond
expectation - “Da Diff” in the Philippine Primary public school
system. On 13 September 2010, The UnionBank Learning System
was simultaneously rolled out nationwide, reaching over half a
million public school students in one year!
Truly, UnionBank remains one with the communities in
5,200 public elementary schools in the National Capital Region
(NCR), Region VII (Central Visayas), Region XI (Davao Region)
and Schools Divisions and Districts in Nueva Ecija, Sarangani,
Basilan and Tawi-Tawi. “This is history in the making as the
Grade 2 pupils will be opening the same book of the same title
for the fi rst time.” (Director Recaredo G. Borgonia, DepEd Region
VII- Central Visayas). Since 2007, we have reached over
1.4 million Primary public school pupils.
We have an ongoing advocacy partnership with
Dr. Jesus P. Estanislao and the Institute for Solidarity
in Asia since 2007 for sponsorship of the Philippine National
Police Academy Roadmap, Cebu Province Roadmap, and
the Public Governance Forum; and in 2010, the Philippine
National Police Roadmap with the National Competitiveness
Council.
Since 2009, in a continuing partnership with the
Ramon Aboitiz Foundation, Inc., we have supported the Young
Minds Academy Program on Education, Good Governance,
Poverty and Social Welfare. This year, we also made an initial
donation in coordination with the Aboitiz Foundation, Inc.
in support of the Kapit Bisig Para sa Ilog Pasig.
UnionBank gave a grant to the University of the Philippines
(UP) Foundation, Inc. for the UP School of Economics to finance
four interdependent programs in two phases: (1) establishment
of a UnionBank Professorial Chair in Economics; (2) an annual
support to a Research Program in Financial Economics;
(3) a scholarship and research assistance support; and
(4) a facilities-improvement Project of the UPSE consisting of
the establishment of the UPSE Center for Financial Economics.
Conclusion. The last year of FOCUS 2010 is the fi rst of
FOCUS 2020 in a seamless continuum aligned to our brand
promise and in pursuit of our purpose in a path toward
enduring value creation for the communities we serve and for
our stakeholders. Our strategies are sound and in place.
A passion for execution, an obsession for results, and
the will to win are our only response to the support that you,
our stakeholders, have given us.
As always, we thank you as well as our customers,
partners, Board of Directors, all UnionBankers, and the
communities we serve.
Let us once again renew our commitment to UnionBank.
Our Bank. Our Future.
Justo A. Ortiz
Chairman & Chief Executive Officer
7
PRESIDENT’S REPORT
Leveraging to Achieve New Heights
8
We are pleased to report that our Bank exhibited strong
fi nancial and operating results for the year 2010. We posted
a record net income of Php5.4 billion, 23.8% higher than the
previous year. This is on top of the Php524.5 million worth of
provisions for impairment losses we continued to set aside.
We remained among the industry’s most profitable banks.
Our return on equity of 15.5% and return on assets of 2.2%
compared favorably against industry standards of 12.7% and
1.4%, respectively. Our earnings per share improved by 23.8%
to Php8.35 from Php6.74. In May this year, we dividend out
Php1.6 billion to our shareholders. Our Board of Directors
declared a cash dividend of Php2.50 per share, which is
equivalent to a payout rate of 29.9% of our net income. Over
the last 10 years, our cash dividends grew at a compounded
annual rate of 31.6%. Our stock price improved by 61.9% yearon-year, surpassing the stock market and fi nancial indices.
The global environment in 2010 was characterized by
slow economic growth. Most of the countries already moved
out from recession and recovered from the woes of the worst
economic turmoil in 2008 that hit since the Great Depression.
The United States pumped up more liquidity into the market
to jump-start its economy although unemployment remained
to be its biggest challenge. Asia emerged strong and resilient
as economic growth rates returned to pre-crisis levels. Fiscal
performance improved tremendously while capital inflow
remained strong. On the other hand, several countries in the
Euro zone area, particularly Portugal, Ireland, Greece and
Spain, still experienced fi nancial setbacks due to huge fi scal
deficit and debt concerns.
Riding on the economic growth in emerging Asia, the
Philippine economy strengthened. Gross Domestic Product
(GDP) growth rate accelerated to 7.3% in 2010 from 1.1% the
previous year. The industrial sector, which accounted for
31% of GDP, was one of the major drivers in boosting the
economy, growing by 12.1% from a negative growth of 0.9%
for the period in review. Among its sub-sectors, mining and
quarrying, manufacturing, and electricity, gas and water,
exhibited substantial growth. The services sector, likewise,
improved by 7.1% from 2.8%. The agriculture sector, on the
other hand, registered a decline of 0.5% as it posted negative
growth for the fi rst three quarters of 2010 due to the El Niño
weather phenomenon that hit the country. Merchandise
exports increased by 33.7% year-on-year while imports rose by
27.2%, thereby reducing trade deficit to USD3.3 billion. OFW
remittances continued to support domestic demand as it hit
USD18.8 billion in 2010, paving the way for a current account
balance surplus of USD8.5 billion. Due to the sustained
growth in OFW remittances, steady income on business
process outsourcing and huge inflow of portfolio investments,
balance of payment surplus more than doubled to USD14.4
billion and the peso strengthened to average USD1:Php45.11
in 2010 from USD1:Php47.64 in 2009. Key policy borrowing
rates remained steady at 4.0% as inflation rate continued to
be benign, slightly increasing to 3.8% from 3.2% during the
reference period. Fiscal deficit widened to Php314.4 billion
from Php298.5 billion on higher spending to stimulate the
economy and fully recover from the global meltdown in 2008.
The Philippine banking system strengthened and
expanded in 2010. Banking institutions performed better
and geared up in preparation for the Basel III requirements.
Profitability improved on lower funding cost and hefty trading
gains as interest rates continued to decline. The steady growth
in deposits fueled the expansion in resources. Gross customer
loans grew creditably, led by auto and mortgage loans.
The industry’s capital base increased dramatically, boosted
by fresh equity issuances by various banks. The average
capital adequacy ratio of the industry rose to 16.5% as of
end-June 2010 from 16.0% in 2009.
Our Bank sustained superior performance in 2010.
Our net interest income grew by 9.5% to Php7.1 billion in 2010
from Php6.5 billion in 2009, while our non-interest income
improved by 4.4% to Php6.1 billion from Php5.9 billion. Cost
savings and disciplined spending tempered the growth of our
operating expenses to Php6.5 billion in 2010 from Php5.9 billion
a year ago, amid expansion in our business franchises.
At end-2010, our assets hit Php253.0 billion, expanding
at a compounded annual growth rate (CAGR) of 17.7% over the
last 10 years. Our average earning assets grew by 8.8% to
Php204.4 billion in 2010 from Php187.9 billion in 2009.
Our deposit base grew by 23.0% CAGR over the last ten years,
better than the 9.0% industry record. Our Bank remained
sound and well-capitalized as our capital adequacy ratio
strengthened to 17.0% in 2010 from 16.1% a year ago on strong
earnings performance compared to the regulatory minimum
requirement of 10.0%.
Notwithstanding increasing business volumes, our Bank
maintained the 2.0x revenue-to-expense ratio target, higher
than industry’s 1.6x in 2010. Prudent expense management,
coupled with continuous process improvement, drove us to
achieve these efficiencies. We continued to apply the Six
Sigma concepts and employ the Defi ne-Measure-AnalyzeImprove-Control (DMAIC) methodology developed by Motorola
University, to efficiently manage our business processes.
We continued to be committed to a compliant, accurate,
timely and efficient service delivery as we obtained ISO
9001:2008 certification in 2010, an upgrade from the
previous ISO 9001:2000 Quality Management System (QMS)
Certification obtained in 2008 from TUV Rheinland for our
entire centralized backroom operations. We continued to
achieve zero non-conformance for this certification during its
quality audit for the second straight year. As a demonstration
of our passion to sustain quality in business processes,
we became certified for ISO 27001:2005 Information Security
Management System this year, making our Technology
Management Services the first Information Technology
Group in the Philippines to attain this stringent international
standard in bringing information security under explicit
management control.
The year 2010 saw the Board of Directors and
its committees’ continuous active participation
in overseeing the operations and various risk
management activities of our Bank. Sufficiency
of capital was ensured to support our business
strategies and risk-taking capacity. Our Bank
continued to modify the credit processes to streamline
credit underwriting activities and improve operating
efficiency. Our credit policies were likewise amended
to limit exposure to non-strategic products and high-risk
customer profi les. We continued to review and validate
the adequacy and soundness of our market risk policies,
assumptions and practices. In the area of operational risk,
our Bank ensured that processes and controls were
in place to mitigate possible operational risk exposures.
We availed the services of a foreign-based external
security consultant to assess our system and physical security,
which resulted to favorable strength of our current setup,
enabling us to further identify areas for improvement. Aside
from the ISO 27001 Information Security Management System
Certification, we also embraced the ISO 31000 Enterprise Risk
Management Framework as basis for building our enterprise
risk management framework. We instilled a risk awareness
culture for our operations people by integrating a module on
Basic Operational Risk to Branch Certification Programs and
providing workshop training on performing operational risk
assessments to operations units. All our branches and
head office units subjected for audit review passed in 2010.
We appointed an Information Security Officer enabling
integration and bank-wide coverage of security efforts, and
promoting proactive measures to bring the information
security risks to an acceptable level. Our Bank participated
in the Corporate Governance Scorecard Survey of the Institute
of Corporate Directors, both for publicly listed companies and
banks, to assess our corporate governance.
We continued to engage customer and widen our
franchise as customer accounts expanded to 4.04 million,
growing more than seven times for the past nine years.
We positioned ourselves in the small- and medium-scale
market through our BusinessCheck and BusinessLine products.
We did good business with most of the large corporations in
the country via our cash management solutions. Our list of
e-clients lengthened as we grew our Business-to-Consumer
market through debit card variants.
We widened our geographic reach to bring our Bank
closer to our customers. We expanded our network and
opened 13 new branches in key business centers, namely:
9
PRESIDENT’S REPORT
PRESIDENT’S REPORT
10
EDSA Pioneer, Newport City, San Fernando La Union, Ozamiz
City, 5th Avenue – Bonifacio Global City, Eastwood City,
Aurora - Balete Drive, Vertex One - San Lazaro, St. Francis
Shangri-La Place, NAIA Terminal 1, ICTSI - Port Area, Puerto
Princesa and 2nd Avenue – Bonifacio Global City. Our total
brick and mortar investments totaled to 186 by the end
of 2010. We continued to leverage on our branch network.
Our Consumer Finance Center established new dedicated
loan desks in Cebu, Davao, Pampanga, Iloilo and Cagayan De
Oro branches, equipped with a pool of experts, to provide
excellent and relevant service to our customers. We further
boosted our automated teller machine (ATM) network as we
installed 12 ATMs during the year, bringing the total network
to 214 ATMs.
We remained superior in our technology-based banking
franchise. We are the sole one-stop electronic payment
gateway to multiple government agencies. Our electronic
payment products and services have been adopted by several
government agencies, including the Bureau of Internal
Revenue, Social Security System, Pag-IBIG, PhilHealth, Bureau
of Customs and Securities and Exchange Commission, and
various utility companies such as Globe, Maynilad, Manila
Water, and Visayan Electric Company, Inc. We further
strengthened our competitive edge and market position as
we launched several cash management products and services
that would cater to the increasing and changing requirements
of our customers. In May 2010, we started issuing the GSIS
Unified Multi-Purpose Identification (UMID) eCard, a single
government ID card for various agencies such as Social
Security System, Government Service Insurance System,
PhilHealth and Pag-IBIG, and an efficient way for members
to avail of their benefits. In September, we launched
ePayroll with ePayslip, a full outsourced payroll processing
system allowing employees to view their pay slips through
their company’s intranet connection, thereby eliminating
printing and manual distribution of pay slips. In December,
we introduced ePayout Portal, a single online system for
domestic and international payouts, which facilitates check
disbursements and electronic funds transfers, and efficiently
processes and approves bulk payouts.
To further strengthen our foothold in the small and
medium-scale market, we developed numerous BusinessLine
products tailored to the needs of today’s SMEs. In April 2010,
we launched BusinessLine Agri to fi nance the construction,
upgrade, and expansion of contract growers’ poultry farming
facilities. In October, we introduced BusinessLine Beverage
Line to provide fi nancial flexibility to dealers in meeting the
growing demands of their business. In December, we created
BusinessLine for Feed Dealers, customized to meet the distinct
needs of Pilmico dealers. On the same month, we unveiled
BusinessLine for Franchisees for the expansion needs of existing
franchised store owners.
With regard to our other retail products, our Consumer
Finance Center offered 0% interest on balloon payment schemes
with premium car partners in July 2010 to entice affluent
individuals. Our credit card business developed the capability
to customize cards for smaller communities which led to the
launch of 11 new co-brand / affi nity credit cards in 2010, namely:
Burgoo Visa, Racks Visa, Cebu Parklane Visa, Home Depot Visa,
People Management of the Philippine Visa, Philippine Academy
of Ophthalmology Visa, Adamson Visa, Haribon Foundation
Visa, MetroGas Visa, Riviera Golf Visa, and Alpha Phi Omega
Visa. In September, riding on our customized card program,
we unveiled the fi rst corporate card product in the country
which integrates the corporate logo or corporate theme in
the card design, allowing corporate clients to promote their
corporate brand through wallet advertising.
We received several commendations and awards, both
locally and internationally. For the fourth time, we received
an Anvil Award for our Annual Report from the Public
Relations Society of the Philippines. In April 2010, we received
The Asian Banker Achievement Award for Cash Management
in the Philippines for 2009. In the same month, during the 10th
Annual Finance Asia Polls of Asia’s top managed companies
in the region, we were the only bank, among the top 10
Philippine companies, cited in three categories, namely, Best
Corporate Governance, Best Corporate Social Responsibility
and Most Committed to a Strong Dividend Policy. For four
consecutive years, our credit card and debit card businesses
continued to reap recognitions from Visa, Inc. for our
outstanding performances. In June, we were awarded the Best
Medium Philippine Peso Bond Fund at the 2010 Lipper Fund
Awards for exhibiting consistent strong risk-adjusted returns in
our Philippine Peso Bond Portfolio. In September, we became
the 16th certified participant worldwide and the fi rst and only
Philippine bank to go live for the SWIFT Workers’ Remittance
service. We received a Silver Award from the Institute of
Corporate Directors for our strong adherence to corporate
governance and transparency. We were also one of the four
local banks among the top 25 Philippine companies,
as recognized by BusinessMirror, for achieving a high ranking
in the latest Wealth-Added Index (WAI) developed by
New York-based Stern Stewart & Co.
In the next five years, we aim to continue expansion
across all our business franchises. We will continue to
widen our reach as we open new branches in key business
centers in the country, and ensure visibility in the internet as
well, for greater accessibility and cross-selling opportunities.
Our remittance business will be boosted as we partner
aggressively with money transfer operators in countries
with high concentration of Filipinos worldwide. In the area
of corporate and commercial lending, we will continue to
leverage on our existing customer relationships and their
communities. Our consumer fi nance business will focus
its marketing efforts on top developers and auto dealers
while ensuring superior service delivery. We will continue
to expand our credit card base by connecting with smaller
communities. We will continue to push for product innovation
in cash management, debit and credit cards, business and trust
banking businesses to strengthen foothold in all market areas
and gain competitive edge. We will intensify efforts in the
management and disposal of our non-performing assets. Cost
management will focus on technological advancements and
business process improvements through Six Sigma initiatives.
We will continue to obtain ISO certifications in the different
processes across all business segments. Risk management in
all processes will be enhanced. We will continue to engage
more of our customers and employees and ensure that every
UnionBanker internalizes and lives our UnionBank brand of
Smart Banking.
These strategic imperatives are on top of our ongoing
initiatives in deposit generation, cash management, corporate
and commercial banking, consumer fi nance, capital markets/
treasury businesses, trust banking, asset recovery, risk
management, and manpower development.
We are pleased with our performance in 2010. And we
look forward to a more exciting future. In the context of the
challenging fi nancial market, we will leverage on our people,
systems, processes, customer relationships and brand to
achieve new heights in our pursuit of becoming one of the
preeminent fi nancial enterprises in the country.
I thank our customers, business partners and
shareholders for their continued trust and confidence. I greatly
value the time and leadership of our Board of Directors.
I thank my fellow UnionBankers for their passion, hard work
and commitment, the driving forces behind our achievements.
Guided with a great vision and armed with a good team,
I am confident that we will emerge stronger in weathering
difficulties and challenges, and better in seizing opportunities
that lie ahead in the future.
11
Victor B. Valdepeñas
President & Chief Operating Officer
The Place to Play
Genting Hong Kong has taken the leisure and entertainment industry by storm,
in both sea and land.
Anyone who goes onboard on one of the Star Cruises ships for
the first time experiences one thing: awestruck. The enormity of
the ships, the opulence of the décor, the sheer variety of activities,
the exciting dining options, the world-class entertainment, and the
warm hospitality of the crew all create an unforgettable experience.
“Our unique venues and itineraries, coupled with a promise
to deliver best-in-class services, will ensure an unforgettable
experience by all,” says David Chua, President of Genting Hong
Kong, formerly known as Star Cruises Limited.
Founded in 1993 as an affiliate of the Genting Group of
Malaysia, Star Cruises is credited for singlehandedly developing
the cruise industry in the Asia Pacific. Seven years later, it acquired
Norwegian Cruise Line, making it the third largest cruise operator in
the world that owns a combined fleet of 18 ships visiting over 200
destinations internationally, offering approximately 35,000 lower
berths.
With the same vision and indomitable spirit that founder Lim
Goh Tong showed when he transformed Genting Highlands (now
Resorts World Genting) in 1965 from an unexplored hilltop into one
of the world’s most successful integrated resorts, the Lim family
made the decision to expand into the business of vacationing in the
high seas, especially when there were no major cruise providers in
Asia at that time.
Genting also foresaw the future of Asia: more prosperous, more
discriminating, and more adventurous. When it launched its first
new-build in 1998, Star Cruises took the cruise industry by storm.
It was an Asian cruise line upholding world-class Western
cruising standard while seamlessly catering to the lifestyle habits
and food and entertainment preferences of its largely Asian
customers. But it also attracts plenty of North American, Australian,
European, and British cruisers.
With its innovative concept of freestyle cruising, warm
Asian hospitality, and high safety standards, Star Cruises is well
recognized by the travel industry and has achieved an array of
international awards. It has been honored 10 times as “The Best
Cruise Operator” award by Travel Trade Gazette Asia and has been
inducted into its “Travel Hall of Fame” award.
And the company is not stopping there. Its newest ship,
Norwegian Epic, delivered in June last year, pushed the envelope in
cruising when its chic and sleek Epic Studio Staterooms snatched up
the prestigious “Travel & Leisure Design” award, an unprecedented
achievement in the cruising industry.
Back on land
With its resounding success in the high seas, Genting Hong Kong
decided to bring its expertise in leisure, entertainment, and
hospitality back to land. In 2009, it opened its first foray in a landbased attraction, Resorts World Manila (RWM), raising the bar of
luxury lifestyle and entertainment in the Philippines.
“Genting Hong Kong’s mission statement is to create worldclass entertainment and leisure experiences for our visitors,”
Chua says. “We will continue to leverage off the Genting Group’s
unrivalled regional expertise in land-based resorts development as
we look to expand our own individual footprint,” he adds.
Genting Hong Kong formed a joint venture called Travellers
International with Philippine conglomerate Alliance Global Group.
Resorts World Manila (other Resorts World properties are ran
by other Genting Group subsidiaries) was designed to be the
company’s flagship integrated leisure and entertainment complex
currently featuring three hotels, an iconic shopping mall, four highend cinemas, and a multi-purpose performing arts theater.
As with its fleet of cruise ships, Genting Hong Kong offers
the best in luxury accommodations, relaxation, dining, shopping,
entertainment and gaming, all in one place. It is home to three
international brands: Maxims Tower, the first all-suite deluxe hotel
in the country; Marriott Hotel Manila, a five-star brand known
internationally for quality and service; and an affordable hotel for
the budget traveler.
Resorts World Manila also features the Newport Mall, with
some of the world’s top brands, including a host of entertainment
and dining options. The opening of its four ultra-modern and
luxurious Newport Cinemas and the 1,500-seat state-of-theart Newport Performing Arts Theatre also enriched the local
entertainment scene.
And for the savvy, sophisticated clients, it opened the Genting
Club, RWM’s exclusive members-only lifestyle club, a luxurious yet
intimate club, offering round-the-clock gaming, live entertainment,
themed food, and beverage outlets, a cigar lounge, as well as a
venue for exclusive events and parties.
In November 2010, RWM launched its signature annual festival
called Grand Fiesta Manila, with nightly concerts, free outdoor
performances, an arts festival, body art fashion show, light shows,
gaming tournaments, a charity fun run, and a vibrantly colorful
Grand Parade. It also premiered its first original production, Kaos,
a one-of-a-kind spectacle combining the engaging narrative of
Broadway musicals with dazzling acts, breathtaking stunts, daring
acrobatics, and amazing magic that are the staples of some of the
grandest Las Vegas shows.
Big ambitions
Resorts World Manila is definitely a huge hit. Its visitor arrival
currently averages 12,000 daily, a notable increase from an average
of 4,500 visitors daily in 2009 when it opened, but the company
expects to see even more continuing growth. Chua shares, “The
result has exceeded our expectations and we are pleasantly
surprised by the depth of the market in the Philippines.”
Genting Hong Kong has shaken up the cruise industry with
Star Cruises. It has already demonstrated that the same revolution
can be done in the land-based tourism sector with RWM pioneering
the integrated tourism destination concept in the Philippines. Chua
predicts, “We are confident Resorts World Manila will consolidate
its eminent position as the preferred choice for leisure and
entertainment in the Philippines.”
It looks like Genting Hong Kong will stop at nothing until RWM
has become the bona fide “Place to Play” in the region.
13
Global Ambition
Having dominated Philippine port management, ICTSI has become a major player in
terminal operations around the world.
Over four million twenty-foot containers pass through its
terminals across four continents. In fact, these terminals can handle
more than seven million twenty-foot equivalent units, or TEU, the
industry unit of cargo capacity.
Whether these are imports of construction material to the
Philippines, textiles to Poland, sugar to Madagascar, appliances to
Indonesia, sunflower oil to Syria, and coffee to Georgia, or exports
of aluminum from Brazil, textiles from China, and bananas from
Ecuador, they all go through the terminals managed by International
Container Terminal Services, Inc., better known as ICTSI.
The port management company owns and runs 21 marine
terminals in 16 countries, making ICTSI one of a handful of true
Philippine multinational corporations. It has, in fact, been called by
the Asian Development Bank as one of the top five major maritime
terminal operators in the world.
Most Filipinos know ICTSI as the operator of the Manila
International Container Terminal (MICT) at the MICT at the Port of
Manila, where it has a 65 percent market share for international
containers. They also know it as the company of Filipino
businessman Enrique K. Razon, whose family has been managing
harbors in the Philippines for three generations. What they do not
know is majority of its income is earned outside the Philippines.
So how did a Philippine company become a major force in the
supply chain of global world trade? It boldly goes where many dare
not go.
Modernizing Philippine ports
ICTSI was started in 1987 by Razon during the bidding for the
MICT contract from the Philippine government in a competitive
privatization tender. Since then, it has expanded by running
terminals in Subic Bay in Zambales, Bauan in Batangas, Davao,
South Cotabato, and Misamis Oriental.
MICT remains its flagship operation, with an annual capacity
of 1.9 million TEUs and accounting for 42 percent of ICTSI’s total
revenues. Since its takeover of the MICT in 1988, ICTSI has increased
the terminal’s annual capacity five-fold, expanded the cargo
handling fleet to make it the largest and most modern in the country
today, and converted a manual control system to an integrated realtime IT terminal control system.
As a terminal operator, ICTSI sets high standards of efficiency
for port management. This includes providing financial solutions
for its operation and customers. And it has found a like-minded
partner in UnionBank. Rafael Consing Jr., ICTSI’s Vice President
and Treasurer, says, “By establishing a branch in the port area,
our customers were afforded branch convenience and security as
well as the opportunity to experience UnionBank’s bespoke cash
management platform.”
Professional management is one of the strengths of the
company. In 2010, ICTSI was ranked third in Best Mid-Cap category
of companies in the Philippines, by Finance Asia, a Hong Kong
based financial magazine and included for the second time in
the Top 25 Wealth-Added Index list for 2010 among Philippine
companies by Stern Stewart & Co., a worldwide management firm
based in New York. “Our management has a proven track record of
success in port development and management in numerous ports all
over the world,” Consing says.
From Manila to the world
The company’s business strategy is to develop, acquire, own, and
operate common user container terminals in the 50,000 to 1,500,000
TEU range in markets of superior growth and profit potential. That
means buying underperforming small-and mid-sized terminals,
mostly in government privatizations, in mostly emerging markets.
“After consolidating and strengthening our base and flagship
operations at the Manila International Container Terminal in
the Philippines, we realized the potential for an independent
international terminal operator like ourselves, and launched an
aggressive international and domestic expansion program in 1994,
starting with Argentina,” says Consing.
That international expansion and acquisition strategy has
paid off handsomely. Revenues and earnings have been growing 23
percent and 26 percent, respectively, year-on-year for the past five
years. Its six biggest ports in Manila, Brazil, Poland, Madagascar,
Ecuador, and China, accounted for 90 percent of revenues in 2010.
In 2010, it earned revenues of $527 million and net profit of $98.3
million.
Entering smaller and developing countries allows the company
to take advantage of the huge potential for growth because their
markets are not yet mature and therefore generate higher yields.
ICTSI either takes over an existing port or builds one as part of its
concession.
It certainly helps that ICTSI is a company from a developing
country like the Philippines, giving it the experience, expertise, and
audacity to go into emerging markets other companies have not
considered or dare not enter.
Recently, however, it has added more advanced markets to
diversify its portfolio. It acquired its first terminal in the U.S. at the
Port of Portland in Oregon. The purchase is considered the largest
financial transaction in the history of the city’s maritime port. It
also owns majority of a terminal in Okinawa, Japan.
But its main thrust is still to enter emerging markets, winning
bids in Manzanillo, Colima in Mexico and Rijeka, Croatia. “We
will continue to maintain leadership position in the markets we
operate, pursue new opportunities for expansion, and diversify
geographically,” Consing says.
Already, it has its eye on even more potential targets, listing
1,248 international and government-operated ports to choose from.
It has earmarked US$456 million for capital expenditures this year
if an opportunity arises. Having its presence in Asia, Europe, the
Middle East, and the Americas, it is now looking into the second
largest continent: Africa, now on the verge of growth.
Consing notes, “We have a track record that confirms our
ability to rapidly adapt to different operating environments, and to
add substantial value to our operated terminals by enhancing their
efficiency at every level.” With topnotch management, international
experience, and aggressive expansion, there is no doubt ICTSI will
explore and conquer new frontiers.
.
15
Carlos Chan
Chairman
Liwayway Marketing Corp.
Oishi and Guanxi
With a keen sense of market trends and a bold move to expand overseas,
Liwayway Marketing Corporation has built a truly Asian brand.
How many ways can you say “Oishi?” In Japanese, it means
delicious. In the Philippines, Oishi is a brand of addictively tasty
prawn crackers that have long been a household name. What not
a lot of people know is that in China, where it is known as Oishi
Shanghaojia, it has become a leading snack food brand. In fact,
Oishi is also big in Vietnam and Myanmar.
Ever since Carlos Chan made the decision to expand in China
in 1993, Liwayway Marketing Corporation has become one of the
rare Filipino corporations that have become successful overseas.
The company chairman says, “I am happy with the expansion
efforts of the Group thus far – having established presence in
China, Vietnam, Myanmar, Thailand, and Indonesia.”
Oishi is among the truly successful Asian brands that are
proudly Philippine made. As Chan shares, “Today, wherever a
Liwayway factory is found, the Philippine flag is hoisted. It is one
of the ways that our sense of pride in being rooted in the Philippines
is exemplified.”
From commodities to brands
The company traces its roots to post-war 1946, when a small family
business started by Chan Lib and his wife See Ying engaged in the
repacking of flour and coffee products. In 1966, the business was
converted into a corporation, as it expanded into the distribution
of pomade, candles, candies, and sauces.
In 1974, the second generation in the family led by Manuel
Chan diversified into the manufacturing of snack foods, launching
“Oishi Prawn Crackers” and “Kirei Yummy Flakes.” The products
became so successful that Liwayway concentrated on this line of
business.
“Oishi” became the patent brand for all its product lines, which
has now grown to over 50 variants of salty snacks, cereals, popcorn,
cookies, powdered juices, and sauces. Among them are Marty’s
Cracklin’, Oheya! Multi-grain Snacks, Gourmet Picks, Ridges,
Pillows, Bread Pan, Sundays, and Smart C+. It’s astounding how
many household brands Liwayway has created over the years.
So what is Liwayway’s secret ingredient? Chan explains,
“I believe Liwayway has developed a good sense or feel for what
may click.” He observes, “I think that our customers like variety,
and would every so often look for something new – something
unique or original. I think that it is very important to remain
sensitive and responsive to market preferences. It is through
continuous product development that we strive to stay relevant
and ahead of competition.”
International expansion
The major turning point for Liwayway’s immense success was
Chan’s decision to expand overseas. The company was a pioneer
in this area, establishing its fi rst cooperative joint ventures
in Shanghai, and this strategic move has proven to be a very
profitable bet. Chan explains, “There were clear advantages of
entering markets early, as we did in China and Vietnam in 1993
and 1997. As an early player in these emerging markets, Liwayway
was not only able to take advantage of a favorable regulatory
environment, including various tax incentives but it was also
fortunate to participate in the development of the snack food market
in the early going.”
It was a bold, if not risky move, but Chan says he was
“confident in the pronouncements from the Chinese government on
their intent to promote foreign investment and a more free-market
orientation in the early 1990s.” He shares, “Today, I am quite
pleased with our progress in China where we now operate 14 plants,
market our products throughout the country, and still continue to
build on our China brand, ‘Shanghaojia,’ which already achieved
the ‘China Famous Brand Award’ status a few years ago.”
Of course, it was not all smooth sailing. As Chan
acknowledges, “Engaging in business overseas had its difficulties,
but whether in China or in Vietnam, the process of learning was
invaluable.” He says that a company considering international
expansion should have good appreciation of market dynamics and
way of doing business. “I feel that it was the importance we placed
on deepening our understanding of things unique to a certain
area and its people – including the many cultures that China alone
represents – that eventually expanded possibilities for Liwayway,”
Chan explains.
Long-term view on long-term relationships
The Chinese call it “guanxi,” which literally means relationships.
Chan explains that joint and continuous effort to promote
meaningful linkages breeds a special sense of inter-connectedness
among people, whether as business partners, between employer
and employee, among employees, and even between the
community and its citizens. He stresses, “A long-term view, or a
mindset or faith in long-term relationships, is necessary to propel
and sustain mutually beneficial connections.”
It’s the kind of relationship Liwayway values about
UnionBank. As Chan puts it: “Business is all about partnerships.
A great bank-partner is one that seriously undertakes to gain, and
maintain a critical appreciation of its customers’ business.”
There is no stopping Liwayway’s expansion. Recently, the
company developed a selection of ready-to-drink beverages.
In the Philippines, Chan shares, “The market reception of our
Smart C+ vitamin drinks has been very encouraging. We are
excited to expand this product offering and introduce to other
Asian markets in the very near term.”
It also acquired Great Lakes, an American fruit juice brand
that was also established in China in the early 90s. Thanks to
Liwayway’s early foray into mainland China, it has established
a wide distribution network throughout the country, helping a
brand like Great Lakes to expand.
Breaking early into emerging markets is only one part of
Liwayway’s success overseas. “Yet,” he says, “the inclination to
understand the market or people in general is crucial. I believe
that it is this leaning that drives Liwayway to continue developing
products to satisfy their many preferences.” Thanks to Liwayway,
not only Filipinos but the Chinese, Vietnamese, Burmese, Thais,
Indonesians, and other Asians are all one in enjoying delicious
Oishi for many years to come.
17
Ramon O. Cojuangco, Jr.
CEO, Playa Asya Resort Inc.
A Piece of Paradise
ASYA Premier Suites offers the best of Boracay’s treasured past:
privacy, tranquility, and exclusivity.
What would paradise look like? It would look something like
this: white sand, cool sea breeze, expansive space, sumptuous
food, peaceful atmosphere, relaxing pool, luxurious quarters,
happy children, and young couples coming from all corners of
the globe. It would look something like ASYA Premier Suites in
Boracay.
Indeed, in the popular travel review site TripAdvisor, one
guest gushed that “this is a piece of heaven on earth.” Among
specialty lodgings in Boracay, it was ranked second most popular
with overwhelmingly positive reviews.
This piece of paradise sits on top of a hill overlooking the
sea at the southern tip of Boracay. The high-end resort occupies
12 hectares of prime property in Barangay Manoc-Manoc, close to
the end of White Beach in Station 3. ASYA Premier Suites boasts
of “all the luxuries of a 5-star hotel and the charming intimacy of
boutique lodging.”
The resort is operated by Playa Asya Resort Inc., owned by
Ramon “Choy” Cojuangco Jr., who is no stranger to the Boracay
hospitality industry.
Far from the madding crowd
Despite the proliferation of hotels and resorts in one of the world’s
top beach destinations, Cojuangco felt there was a need for an
upscale resort that is away from the hustle and bustle of Boracay’s
party crowd. Certainly, there is a market for those who want
relaxation, not just revelry. “Some people just want peace and
quiet, a place where nobody will bother you,” Cojuangco says.
“They are not there to party,” he adds. It reminds one of the
secluded Boracay life a few decades ago.
And so his company built ASYA Premier Suites, tucked in a
private beach area and completely secluded from the noise and
density of the overdeveloped part of the island.
As they say, if you build it, they will come. Most of the
guests of ASYA Premier Suites are foreigners – French, British,
Russians, Chinese, Taiwanese, Japanese, and Korean who value
privacy and tranquility. They are mainly young couples or young
families with small children. Most European guests make the
most out of their long-haul fl ights by staying for two weeks or so,
making ASYA Premier Suites their little piece of heaven.
Cojuangco shares that his company does little marketing,
relying on word of mouth to spread the word. He says, “Some
who were already staying in Boracay happened to check it out
and ended up transferring to ASYA Premier Suites.”
Truly Filipino
Aside from the promise of quiet and seclusion, ASYA Premier
Suites offers a more authentic Filipino experience. The Filipinoinspired seafront villas were designed by architect Ed Ledesma, a
partner of Locsin architectural fi rm. The rooms were designed by
interior designer Rachy Cuna, who played around with a woven
design motif. “We wanted to show a Filipino resort that’s not a
nipa hut,” Cojuangco explains the choice of contemporary Filipino
architecture. “We don’t want tourists to see another Balinese or
Thai-themed resort,” he stresses.
The other thing Cojuangco made sure of is ample space. He
explains, “We want our guests not to feel crowded. Even in a
prime location, we purposefully limited the number of rooms.”
The 10-villa ASYA Premier Suites features 20 spacious 110-square
meter rooms, with 16 Premier Suites and four Presidential Suites,
each having a panoramic view of the sea. Even the 500-square
meter swimming pool is very spacious.
Comfort and luxury
The only fi rst-class resort on that side of the island ensures
privacy and exclusivity. Yet, guests can easily explore the other
popular places in Boracay, such as White Beach, Baling Hai Beach,
Willy’s Rock, Butterfly Garden, and Puka Shell Beach.
But as Cojuangco observes, most guests are content relaxing
in the resort for much of their stay. “We are able to provide
excellent service and great food to make them stay in the resort,”
he points out.
Indeed, who wants to leave the spacious suite at the hotel
that comes with separate bath and shower, panoramic sea views,
a balcony with sitting area and a living room? Each room features
all the amenities of modern living, including two double beds or
one king size bed, hot and cold water, cable TV with DVD player,
NDD/IDD phone service, a mini-bar, and air conditioning. The
Presidential Suites even have a private dipping pool.
And then there are the comforts and conveniences of home:
nanny and butler service, fitness center, wine room, in-room
wellness services, and in-room check in and check out. For those
who just have to catch up on work, there is a function room, a
business center, and Wi-Fi Internet service.
If guests are famished, there is Palay, the fusion restaurant of
ASYA Premier Suites, managed by New York- and London-trained
Chef Oliver Isidro. The restaurant, which is also open to walk-in
diners, caters to its foreign guests looking for their comfort food
such as fish and chips, pizza, burgers, and pasta. But the menu
also features popular Filipino dishes, such as Filipino chicken
adobo flakes with feta cheese, spareribs sinigang with mixed
vegetables, and garlic deep fried tilapia with garlic fried rice. “We
tweak Filipino food to their taste,” says Cojuangco.
Guests are indeed pampered. They are shuttled from and to
the airport and ferried to the resort via a private speedboat. And
the 27-member team is trained to provide world-class service.
ASYA Premier Suites has become so successful that
Cojuangco is already fi nalizing details on the second phase of the
project, with a private village composed of six to seven garden
villas. UnionBank, which fi nanced the construction of the fi rst
phase, has been the right partner, says Cojuangco. “We develop
good relationships at every stage,” he shares.
Once the new private village is completed, more people will
be able to experience the best that ASYA Premier Suites has to
offer. And a piece of heaven will just get wider.
19
Leo H. Prieto, Jr.
Chairman & CEO, Shakey’s Pizza
Bonding over Pizza
Shakey’s has been synonymous with thin crust pizza, but it has
also been successful at creating an experience for building bonds.
Shakey’s Special, Chick N Chips, Mojos. These words conjure
images of crispy and chewy oven-baked thin crust pizza with
mouthwatering toppings, crunchy and tasty chicken, and soft and
yummy potato slices. Admit it: just reading this is making you
hungry, doesn’t it?
True, the pizza chain has become a favorite among Filipinos
for decades for its famous thin crust pizza. But Shakey’s also
brings us up plenty of memories of fun family gatherings over
pizza and root beer or hanging out with friends over pizza and
beer. You see, Shakey’s doesn’t just sell pizza, pasta, and potatoes.
Shakey’s sells an experience.
Shakey’s, which has its origins in 1954 in Sacramento,
California, came to the Philippines in 1975. It had the atmosphere
of a friendly pub – a dusky, cozy, smoky, drinking joint that
served some of the world’s best pizzas. It was a unique dining
experience even then.
Today, Shakey’s has become a family destination, with its
bright and homey ambiance and fun children’s parties. Under the
leadership of Leo H. Prieto, Jr., Chairman & CEO, the brand had
a total overhaul and new communication framework called Fun,
Family, Pizza.
Yet it also continued to attract hordes of friends – working
professionals and students – who go to Shakey’s to share generous
servings of pizza, Mojos, Chick N Chips and old fashioned root
beer. “Eating pizza is always a memorable communal experience
at Shakey’s,” says Prieto.
Indeed, the company has a knack for creating an atmosphere
conducive to bonding, whether with family or friends. That is
why for the past 36 years, the Shakey’s brand has not only been
associated with great pizza but also with an unforgettable dining
experience. In the Philippines, the pizza chain has grown to 125
stores—and counting. In fact, Shakey’s has more stores here than
anywhere in the world!
Ingredients for success
Anyone can sell great pizza but it takes a special company to
build a brand that helps people bond and connect. Shakey’s does
this methodically. Prieto explains, “We continue to grow with the
ever changing and growing needs of the market by constantly
showcasing innovations, making the brand appealing to all
market segments.”
For instance, it continues to introduce products and packages
designed to encourage dining in groups, like the huge Grand
Slam pizza or the Monster Meal Deal, which feature different
combinations of Shakey’s thin crust pizza, spaghetti platter, Chick
N Chips, and drinks.
The company is also adept at addressing the needs of two
completely different sets of Guests. For families, Shakey’s created
Fun Zone, a separate area in each branch where children can
celebrate their birthdays with their choice of fun party themes.
There’s also the thrill and excitement of Shakey’s Live Radio,
featuring a range of hip but classy music, carefully selected by
professional DJs. Prieto shares, “They also read Guest greetings,
requests and even marriage proposals!” But even the music
played on Shakey’s Live Radio changes during the time of day,
adjusting to each dining segment.
Shakey’s anywhere
What is even more remarkable is that the company is able to
recreate Shakey’s bonding moments even outside the restaurant.
Eating pizza at home or in the office has been as much a part of
the Shakey’s experience as dining in. Guests can call Shakey’s
easy-to-remember delivery hotline 77-777 or order online via
www.shakeyspizza.com for prompt delivery.
Even for families separated by geography, with a parent
working overseas, the company offers opportunities to bond
when it introduced Shakey’s PizzaPadala, another variation of
door-to-door delivery but certainly a one-of-a-kind innovation.
Anyone from anywhere in the world can choose a pizza, pay
it, and have it picked up by a family member at the nearest
branch.
And if there is a really huge party like a school fair, fiesta,
or company event, there’s Shakey’s on Wheels, a fi rst in the
industry –– 36-foot-long buses converted into meals-on-wheels that
go to different locations. These feature a state-of-the-art kitchenin-a-bus with an easy-to-install al fresco dining set up.
Now, with the boom in the outsourcing industry and the influx
of night-shift jobs, Shakey’s has responded by opening 24-hour
stores where employees can chill out and bond. “Shakey’s is always
in touch with the changing times,” Prieto points out. All of these
brand assets are unique innovations that no player in the market
has ventured into. And with these, we shape the playing field, the
landscape of dining experience
This service orientation is what binds Shakey’s with
UnionBank as well. Armie Quintos, Finance Director of International
Family Food Services Inc., which owns the Philippine franchise
of Shakey’s, shares, “As what we preach in our organization,
the UnionBank team also practices the wowing concept every
client wants for a service. UnionBank always wows us with their
service. Second, UnionBank is number one in technology, still
unprecedented. Probably no other bank now can outperform
UnionBank in terms of technology.”
Giving back
Ever the believer in shared experiences, the company has become
a major supporter of women’s sports, sponsoring its own women’s
volleyball league called Shakey’s V-League. Founded in the early
2000s, the league has grown into a certified crowd drawer through
the years with fans coming in droves.
“Shakey’s involvement in women’s volleyball is a testament
to the company’s abiding commitment to sports development,
positive youth development, and corporate social responsibility,”
says Vicente L. Gregorio, Executive Vice President and COO. It is also
another avenue for people to connect. Team members who practice
and play hard, excited fans who support and cheer for their team –
these are ties that bind.
Whether at their restaurants or in school grounds, at home
or in the office, during lunch hours or past midnight, the Shakey’s
experience can be anywhere and anytime. The irresistible thin crust
pizza gives everyone a great reason to eat at Shakey’s, but it is the
memories of bonding over Shakey’s pizza that last a lifetime.
21
Shared Planet
Starbucks has created not just a whole new way of enjoying coffee
but a whole different way of doing business.
With more than 17,000 stores in over 50 countries, it does feel
like there is a Starbucks on every street corner. In the Philippines,
Starbucks has grown to more than 170 stores since it started here 13
years ago. Filipinos have openly embraced the Starbucks Experience
and the quality handcrafted coffee beverages and food it offers. In a
way, Starbucks has singlehandedly changed the way Filipinos and
people worldwide drink coffee.
There are many reasons people all over the world love
Starbucks. There is, of course, the coffee. The company’s coffee
buyers personally travel to coffee farms in Latin America, Africa,
and Asia to select the highest quality arabica beans. Once these
quality beans arrive at its roasting plants, Starbucks experts bring
out the balance and rich flavor of the beans through the signature
Starbucks Roast. The company has always believed in serving the
best coffee possible.
But the real secret to its success is its stores. Starbucks founder
Howard Schultz created the concept of the third place – that
transition between home and work. The Starbucks store is cozy,
cool, and comfortable, with relaxing piped-in music, Wi-Fi access,
and the waft of flavorful coffee aroma in the air. Starbucks stores are
a welcoming third place for meeting friends and family, enjoying a
quiet moment alone with a book or simply finding a familiar place
in a new city.
In the Philippines and in other countries, Starbucks stores
have become a favorite meeting place for friends, family members,
and work colleagues. In fact, Starbucks has become the de facto
landmark for people who set an appointment to meet. Aside from
being ubiquitous and familiar, it is really a perfect place to chat,
wait leisurely, do some work, or just hang out.
Starbucks opened in the Philippines in 1997 through a
licensee agreement with Rustan Coffee Corporation, marking the
third international country to open outside of North America. Its
fi rst flagship store at 6750 Ayala, Makati City was an instant hit.
Now, Starbucks has expanded throughout the Philippines, with
stores throughout metropolitan Manila and in provincial areas
such as Bacolod, Baguio, Boracay, Cagayan de Oro, Cebu, Davao,
Iloilo, and Naga.
The company’s banking relationship with UnionBank has
helped in its growth. Riz Oades, VP for Finance and IT at Rustan
Coffee, says, “UnionBank became a key partner in helping our
fi nance organization achieve operational excellence. Greater
efficiency and process consistency, which are considered crucial
to our operating cash performance, were truly enabled through
UnionBank’s innovative cash solutions. And of course, the Bank’s
very engaging and personalized customer relations paved the way
for more collaborative and speedy resolutions!”
A responsible company
Its coffee and stores have made Starbucks one of the most beloved
brands in the world. What has earned Starbucks the most respect
and admiration of people, however, is its long-term commitment to
conducting business responsibly. Schultz calls it Starbucks Shared
Planet.
Since it started, Starbucks had long been a proponent of
ethical sourcing. The company has developed strong, long-term
relationships with farmers all over the world. In 1999, it partnered
with Conservation International to promote sustainable coffeegrowing practices. Three years later, Starbucks entered into
licensing agreements with national Fair Trade organizations to sell
Fairtrade certified coffee in the countries where Starbucks does
business. It has also since opened Farmer Support Centers in Costa
Rica, Rwanda, and China.
Starbucks is committed to doing business responsibly and
conducting itself in ways that earn the trust and respect of its
customers, partners and neighbors. The company’s goal is that by
2015, all Starbucks coffee will be grown using ethical trading and
responsible growing practices.
As with ethical sourcing, Starbucks is a fi rm believer in
environmental stewardship. It was Starbucks that launched the
industry’s fi rst paper beverage cup containing post-consumer
recycled fiber, saving more than 75,000 trees each year. The
company constantly works to significantly reduce its environmental
footprint through energy and water conservation, recycling, and
green construction.
Starbucks is also well-admired because of how it treats its
employees, referred to as its partners, who are at the heart of the
Starbucks Experience. The company is proud to offer the fi nest
coffees in the world, grown, prepared, and served by the fi nest
people.
The company trains its store partners in coffee knowledge,
product expertise, and customer service. Starbucks’ success in the
Philippines is anchored on passionate partners who strive to uplift
their customer’s lives through daily inspirations. Demonstrating a
high level of passion for coffee, more than half are Certified Coffee
Masters engaging in such activities as the Coffee Ambassadors
Cup, Bean to Cup seminars, and other efforts that promote the
appreciation of great coffee.
Starbucks is likewise actively involved in every local
community it operates in. By 2015, it plans to contribute one
million volunteer hours each year to local communities. For
Starbucks, bringing people together, inspiring change, and
making a difference in people’s lives – it’s all part of being a good
neighbor.
Starbucks Philippines, for instance, supports early
childhood learning through its SparkHope program in partnership
with UNICEF Philippines. SparkHope promotes early learning
education projects for children aged zero to six in severely
underprivileged communities.
With its stores, Starbucks offers a third place, bringing
customers together to enjoy solitude or company over great
coffee. But with its ethical sourcing, environmental stewardship,
partner relations, and community involvement, Starbucks has
proven that we are indeed all connected and living under one
Shared Planet.
23
Vice Chairman
JON RAMON M. ABOITIZ
President & Chief Operating Officer
VICTOR B. VALDEPEÑAS
Chairman & Chief Executive Officer
JUSTO A. ORTIZ
BOARD OF DIRECTORS
U
24
Director
IKER MARKEL M. ABOITIZ
Director
ERRAMON I. ABOITIZ
Vice Chairman
VICENTE R. AYLLON
25
Director
ELIZA BETTINA R. ANTONINO
Director
STEPHEN G. PARADIES
Director
JUAN ANTONIO E. BERNAD
BOARD OF DIRECTORS
U
26
Director
EDILBERTO B. BRAVO
Director
DANIEL L. EDRALIN
Director
EMILIO S. DE QUIROS, JR.
27
Independent Director
JUSTICE CANCIO C. GARCIA (RET)
Independent Director
ARMAND F. BRAUN, JR.
Director
MAYO JOSE B. ONGSINGCO
BOARD OF DIRECTORS
U
28
JUSTO A. ORTIZ
Chairman & Chief Executive Officer
ERRAMON I. ABOITIZ
Director
Member:
Executive Committee
Risk Management Committee
Market Risk Committee
Nomination Committee
Compensation and Remuneration Committee
Corporate Governance Committee
Chairman:
Market Risk Committee
Member:
Executive Committee
Risk Management Committee
Nomination Committee
Compensation and Remuneration Committee
Corporate Governance Committee
Alternate Member:
Trust Committee
President & CEO
Aboitiz Equity Ventures, Inc.
Aboitiz & Co., Inc.
Aboitiz Power Corporation
VICTOR B. VALDEPEÑAS
President & Chief Operating Officer
Member:
Trust Committee
Market Risk Committee
Alternate Member:
Executive Committee
Risk Management Committee
JON RAMON M. ABOITIZ
Vice Chairman
Chairman:
Executive Committee
Compensation and Remuneration Committee
Nomination Committee
Risk Management Committee
Corporate Governance Committee
Alternate Member:
Audit Committee
Chairman
Aboitiz Equity Ventures, Inc.
Aboitiz & Co., Inc.
VICENTE R. AYLLON
Vice Chairman
Vice Chairman:
Compensation and Remuneration Committee
Alternate Member:
Trust Committee
Chairman of the Board & CEO
The Insular Life Assurance Co. Ltd.
IKER MARKEL M. ABOITIZ
Director
Alternate Member:
Audit Committee
FVP/ Chief Finance Officer/
Chief Information Officer
Aboitiz Power Corporation
JUAN ANTONIO E. BERNAD
Director
Chairman:
Trust Committee
Senior Vice President
Aboitiz Equity Ventures, Inc.
STEPHEN G. PARADIES
Director
Chairman:
Operations Risk Management Committee
Vice Chairman:
Audit Committee
Alternate Member:
Executive Committee
Market Risk Committee
Risk Management Committee
Senior Vice President, Finance
Aboitiz & Co., Inc.
SVP/Chief Finance Officer
Aboitiz Equity Ventures, Inc.
ELIZA BETTINA R. ANTONINO
(elected December 17, 2010)
Director
Member:
Operations Risk Management Committee
Audit Committee
Nomination Committee
Executive Committee
Alternate Member:
Risk Management Committee
Corporate Governance Committee
Commissioner
Social Security Commission
DANIEL L. EDRALIN
(elected April 7, 2011)
Director
Member:
Executive Committee
Risk Management Committee
Market Risk Committee
Commissioner
Social Security Commission
EMILIO S. DE QUIROS, JR.
(elected October 1, 2010)
Director
Vice Chairman:
Trust Committee
Member:
Risk Management Committee
Corporate Governance Committee
Alternate Member:
Executive Committee
Market Risk Committee
President & CEO
Social Security System
EDILBERTO B. BRAVO
Director
Vice Chairman:
Executive Committee
Member:
Trust Committee
Vice Chairman of the Board of Trustees
The Insular Life Assurance Co. Ltd.
Chairman & CEO
U-bix Corporation
MAYO JOSE B. ONGSINGCO
Director
Vice Chairman:
Risk Management Committee
Member:
Audit Committee
Operations Risk Management Committee
Nomination Committee
Market Risk Committee
Corporate Governance Committee
President/COO and Trustee
The Insular Life Assurance Co. Ltd.
ARMAND F. BRAUN, JR.
Independent Director
Chairman:
Audit Committee
Member:
Executive Committee
Nomination Committee
Risk Management Committee
Corporate Governance Committee
JUSTICE CANCIO C. GARCIA (RET)
Independent Director
Member:
Audit Committee
Compensation and Remuneration Committee
Corporate Governance Committee
Alternate Member:
Executive Committee
Risk Management Committee
29
President & Chief Operating Officer
VICTOR B. VALDEPEÑAS
Chairman & Chief Executive Officer
JUSTO A. ORTIZ
POLICY COMMITTEE
U
30
Executive Vice President
Corporate Banking
GUIA C. LIM
Executive Vice President
Consumer Finance
GENARO V. LAPEZ
Executive Vice President
Transaction Banking
EDWIN R. BAUTISTA
31
Retail Banking
JOSE LEVI S. VILLANUEVA
S enior Vice President
Executive Vice President
Commercial Banking
BEATRIZ B. ROMULO
Executive Vice President
Channel Management, Process
and Quality Management
TEODORO M. PANGANIBAN
POLICY COMMITTEE
U
32
RAMON R. CASTRO
NORBERTO M. BELEN
ROBERTO F. ABASTILLAS
CATALINO S. ABACAN
33
SENIOR VICE PRESIDENTS
ANA MARIE D. LIRIO
CESAR G. ILAGAN
JOYCE S. GONZALEZ
RAMON G. DUARTE
SENIOR VICE PRESIDENTS
U
34
CEFERINO P. TOLENTINO, JR.
MANUEL G. SANTIAGO, JR.
ANGELO DENNIS L. MATUTINA
FE B. MACALINO
35
FIRST VICE PRESIDENTS
U
36
JOSELING L. ARCE
MICHAELA SOPHIA E. RUBIO
RAMON D.S. MATIAS
PETER ISMAEL F. QUIAMBAO
MARDONIO C. CERVANTES
PAUL PATRICK M. CARAGUE
37
DANILO A. MACALINAO
RAQUEL P. PALANG
ANTONIO MARTIN D. REYES
AMADO B. CASTAÑO, JR.
FREDERICK E. CLAUDIO
MICHAEL JACK B. GARCIA
38
UnionBank’s investment funds have catapulted them to the big
leagues. One key factor explains their success.
In a way, it has become more customary for us to get a call from Bloomberg asking
for an opinion of the financial markets. A few years ago, the international financial news
organization was more likely to quote the bigger players. But nowadays, it’s hard to ignore
the player with the equity fund that returned 109 percent in 2010 and crowned with the 2010
Lipper Award for Best Medium Term Philippine Peso Bond Fund.
So what has brought UnionBank’s trust department from bit player to the big leagues?
In 2002, we were managing a respectable P1 billion in trust assets. In 2006, assets grew to a
strong P11 billion, which included the P5 billion from our merger with iBank. By the end of
2010, we held P23.8 billion in assets under management. That means we grew 285 percent
year-on-year.
If you think our 2010 performance was just a fluke, think again. Once is a fluke, twice is
lucky, but five years in a row?
In the last half decade, UnionBank’s bond funds were among the highest performing as
tracked by Bloomberg, with our UBP Peso Fund and UBP LTCI fund taking the top two slots.
Morningstar, a fund rating agency, ranked our UBP Peso Fund as first among emerging Asian
bond funds, and our UBP Large Cap as number two among its peers, in terms of five-year
performance. Our UBP Large Cap fund outperformed all its peers in the last five years, based
on Bloomberg’s tracking, and has bested the PHISIX, the broad stock market index, over the
same period. Across the board, our seven unit investment trust funds have ranked among the
top three in their categories.
This consistently impressive streak is the reason why investors are flocking to
UnionBank’s trust funds. After all, while other fund managers may boast of their stability,
service, accessibility, and branch network, investors care about one thing only: superior
returns. Quite simply, customers will choose funds with the best performance.
Winning factor
So what has contributed the most to UnionBank’s fast rise in fund management? For us, there
is one key factor: culture.
It all starts with the right environment. At UnionBank, the spirit of innovation carries on
in the trust department. This has helped us introduce innovative products and services as we
were the first to offer income paying fund and one of the first to offer automatic debit facility
for investors. It has also allowed us to customize products that are specific and relevant for
our clients. We have money market, fixed income, and equity funds that cater to different
client profiles and risk appetites, from conservative to aggressive.
We also have a culture of risk taking that begins from an investment committee that
is not afraid to take calculated risks and challenge conventions. We have the skill set and
the attitude of doing things differently and taking more risks. There is likewise a spirit of
cooperation within the Bank, which allows us to leverage the skills and expertise in other
areas of UnionBank, particularly in capital markets, thus making it a team effort. This
sophistication in risk management coupled with a keen understanding of the capital markets
has helped us with our investment decisions that have propelled our funds to the top ranks.
And there is our belief in putting our people first. Our team of CFAs and MBAs consists
of highly qualified investment professionals with a combined 80 years of banking experience.
UnionBank makes sure we have good people running our funds. We spend resources for
training and development to make sure our people are the best at what they do. And they
enjoy working for us because they have the opportunity to grow as they can manage exciting
portfolios and strengthen their skills in managing stocks and bonds.
A bright future
It only gets better. The long term trend is the shift from bank deposit products to pooled
investment products. In First World countries, pooled funds are one and a half times the size
of bank products. In the Philippines, they are less than two-fifths. But already, the growth rate
in the trust industry has surpassed that of the banking industry. As consumers seek higher
returns on their money, there is a sharp change from having the mentality of savers to that of
investors.
Government legislators and regulators have also encouraged financial reforms that will
only support this trend. After all, the hallmark of developed nations is having sophisticated
investors. Laws that have been passed, such as PERA or Personal Equity Retirement Account
and REIT or Real Estate Investment Trust, along with circulars on financial derivatives, only
show the desire of the government to open the field of investing. Indeed, the pace of reforms
has increased in the last few years.
The future of the trust business is indeed very bright. And UnionBank has what it
takes to build on this trend towards the broader investor market. We have the technology
platform to execute at the retail level. We have always taken the right approach at selling our
investment funds properly so that investors make financial decisions wisely. And we have the
right products that meet their individual needs. Most importantly, we have the track record
that we have consistently built over the last five years.
Certainly, we are proud of our awards and top ranking from Lipper and Morningstar.
And we enjoy taking calls from Bloomberg. But what excites us the most is that we can offer
investors funds that give the best returns on their money.
39
COMMUNITY-BASED
LENDING
40
With a new approach to lending, UnionBank has been
able to help underserved communities nationwide
Raising chickens can be a very profitable business even for a small poultry raiser.
Broiler contract growing can earn hundreds of thousands, if not millions, every month.
The problem is, however, the investment for modern broiler production also costs
millions.
The large integrators, which provide the chicks and the feeds and pay their
contract growers for raising the chickens, prefer the high-tech tunnel ventilation
system, or tunnel vent, over conventional housing, to ensure chicks are active,
healthy, and strong. For the poultry raiser, that means getting paid four times more.
But it also means putting up this expensive facility with money he doesn’t have. To
fi nance it, he will likely offer collateral – his farm lots – that has little value. Most
banks will not lend to him.
There are many communities like poultry raisers, small farmers, and small
business owners that are underserved by fi nancial institutions. Most banks
focused on secured or collateral-based loans. If a borrower defaults, the property
is foreclosed and subsequently sold by the bank at an auction. As such, they lack
access to affordable credit and are therefore have a difficult time growing their
business.
We at UnionBank thought there has to be a better way to help these
communities, especially those in the countryside, grow and prosper. And we
found the answer: community-based lending.
A new way of thinking
A community is any group sharing common characteristics or interests.
It can be based on location, a profession, a business relationship, and the
like. And what is most valued in any community? It’s reputation. Trust is
its currency. And in the context of a well-knit community, it is even more
valuable than collateral.
Community-based lending goes against the conventions of run-ofthe-mill collateralized lending. But we knew this lending methodology
works because we have already tried it before and it has proven to be
very successful.
We worked with a major beverage company for its inventory
fi nancing program offered to dealers nationwide. We sought the help of
the beverage company to endorse to us their most reliable dealers who
might need fi nancing. And we offered these dealers our BusinessLine
facility, which is a credit line that lets borrowers draw and pay
anytime. As it turned out, repayment was impressively high as these
dealers value the reputation they have earned with the beverage
company.
Finding and helping communities
And so we decided we should adopt this lending approach to many
more communities around the country, particularly those that have
been underserved. We met with communities and listened to their
needs. We studied the dynamics of their business to tailor-fit a program
that best captures how these communities work, packaging a version
of BusinessLine that is relevant and specific to them. Since we take a
program lending approach, we also managed it like a portfolio by offering
the credit facility to borrowers who have similar characteristics.
So far, we have reached several communities that some banks are
afraid to even touch with a ten-foot pole. We created a BusinessLine
program for the small dealers of one the largest beverage companies and
one of the biggest feed dealers and applied the same methodology, thereby
helping their own distributors that have already earned their trust to grow
their business.
We approached reputable companies with franchising programs and
asked them to endorse their best franchisees with a proven track record who
want to expand their outlets or enter new markets, using their franchise assets
as collateral but relying just as much on their reputation as basis for extending
fi nancing. This has resulted to business expansion at a cost of credit that is
affordable to them.
And contrary to misconceptions, new medical professionals are not
necessarily flush with cash. This is also a community that needs to borrow money
to grow. So we accredited the top hospitals and offered their doctors fi nancing to
build their clinics, with their clinic shares as collateral and of course with the view
of protecting their reputation in the medical community.
UnionBank has also authorized our relationship managers to offer clean loans
to qualified individual borrowers who operate in their local community and who
have a solid business reputation to protect.
Community-lending is a powerful innovation in banking. With this, UnionBank
BusinessLine is able to strengthen all sorts of underserved communities in urban
areas and the countryside and help borrowers like poultry raisers and small business
entrepreneurs who have little access to affordable fi nancing but have valuable
reputations to protect the chance to grow a profitable business. And it is in keeping with
the spirit of Ubuntu as we help connect different communities to grow together.
41
EIPP MAKES A COMEBACK
42
With a more conducive environment, it was time to relaunch a
product that was ahead of its time
It was 1999. B2B e-commerce was all the rage. Multinational companies and large
Philippine corporations banded together on online marketplaces to extract significant
volume pricing discounts from suppliers. In the fast moving consumer goods (FMCG) space,
the two major multinationals – P&G and Unilever – quietly adopted a web-based electronic
invoice present and payment (EIPP) system developed by UnionBank, and required all
their distributors to use. It was a hugely successful project for the two pioneering corporate
giants.
EIPP was a product way ahead of its time. True, it was offered by some global banks
back then, but P&G and Unilever decided to go for UnionBank’s service as it was adapted for
local requirements. EIPP allowed FMCG companies to present electronically invoices to their
distributors, which they can view online. Distributors can then select which invoices to
pay via electronic fund transfer (EFT) or over-the-counter (OTC) payment. It was certainly
convenient for distributors and allowed FMCG clients to collect from them much faster.
Both local and multinational FMCGs defi nitely saw the value of EIPP, which allowed
them to achieve much faster turnover in their accounts receivables. With better cash flow,
there is little or no need to borrow money, thus lowering their debt level and cost of money.
And since EIPP is tied to their accounting system, reconciliation of receivables was much
easier.
But the market at that time was still in a wait-and-see mode. It did not help that
Internet access for small companies back in 1999 was through slow dial-up modems and
small business owners and their accountants were not comfortable with the technology. So
we put EIPP to the backburner. But not for long.
Time to relaunch
Fast forward a decade later and it’s a different story altogether. Fast broadband Internet
access is widely available, Internet usage among SMEs has skyrocketed, and most
FMCG companies have started to adapt the same disciplines and best practices of their
multinational counterparts.
They knew that the traditional, paper based approach was crude. Before they deliver
the goods, FMCG companies would issue a paper invoice to their distributors. Their sales
agents double as collectors. Normally, distributors would make deductions to the invoice
such as sales discounts and returns, using handwritten notes jotted by the sales agents who
also serve as collectors. The old system lacked efficiency and transparency.
With a better business and technology environment, we knew that EIPP was ripe for a
relaunch. Of course, it was not enough to dust it off from the proverbial shelf and sell it as is
and so we added even more advanced capabilities. Call it EIPP Advance.
We strengthened the functionality of EIPP by allowing distributors to tag deductions
to invoices, such as for breakage returns and promotional discounts, subject to the FMCG
company’s approval. This has also made reconciliation so much easier as these deductions
are properly recorded. Sales agents can also now focus on selling, not collecting payments.
Multiple invoices can be uploaded by batch instead of entering them one at a time. And
distributors can pay within the system. It is certainly even more customizable, allowing
clients to use the system their own way.
Multinational banks offer a similar product but are not able to address the
customization needs of corporations. Since the system’s launch, only one local bank has
launched a product of a similar nature but Unionbank’s EIPP system remains unparalleled
in its ability to tailor fit to the client’s need.
Today, it is also easier to get distributors on board. Since EIPP lets them view their
credit limit – giving them an accurate gauge of how much more goods they could order –
distributors now appreciate the value of signing up and using EIPP. With our training and
dedicated after sales team, FMCG clients have become more comfortable adapting to EIPP.
EIPP is such a powerful system that it extends the benefits of automation to a bigger
part of the supply chain. FMCG manufacturers and their distributors are already reaping
the benefits of EIPP. Even suppliers of these FMCG manufacturers can make use of EIPP to
collect from them.
With EIPP, we close the loop from manufacturer to distributors and suppliers to
manufacturer, linking all the vital elements in the supply chain. With this innovation,
UnionBank has brought together the entire community of the fast moving consumer goods
industry. It may have taken EIPP a decade since its birth to be recognized but this time
around, it won’t take long for the market to go full blast on automated and electronic invoice
presentment and payments.
43
THE NET SHIFT
44
Transferring funds used to be slow and inconvenient. ePayout brings
these electronic transactions where they belong: online.
Banks play a key role in providing payment services to complete any business
transaction, such as payments between buyers and sellers, inward remittances from
overseas workers to their local beneficiaries or just a transfer of funds to a personal
account.
In the Philippines, there are three facilities that clear payment instructions within the
large community of banks. Payments and remittances transferred from one local bank to
another are done via EPCS (Electronic Peso Clearing Settlement) for peso transactions and
PDDTS (Philippine Domestic Dollar Transfer System) for dollar transactions. Transfer of
funds from a local bank to a foreign bank or vice versa is done through SWIFT (Society for
Worldwide Interbank Financial Telecommunication).
For EPCS, electronic interbank transfers are settled within 24 hours or by the next
working day. The PDDTS has end-of-day batch netting transfer capabilities with settlement
similar to that of EPCS for US dollar transactions. Payments sent via SWIFT are transferred
on the same day. Sounds fast, right? Well, it can be a lot faster.
The problem is not the electronic transfer of funds itself but the processing prior to
the actual transfer. Here is a piece of irony: in the Philippines, majority of requests for
electronic funds transfers are still being done manually.
Company representatives head off to their bank’s nearest branch and fi ll out a paper
telegraphic transfer form. If they have to pay different suppliers or payees, they have to fi ll
out as many forms. Sometimes they have to wait in line. And then they have to route the
forms to authorized signatories back at the office. Finally, they send the signed forms to
their branch. They’ll be lucky if they make it before the processing cut-off.
From manual to automated
Paper forms, manual processing, physical routing, branch visits, and long queues – not
exactly in line with the automated, fast and, electronic methods of transferring funds here
and abroad.
There has got to be a better alternative. This is where UnionBank ePayout comes in.
ePayout is a single web-based platform that facilitates various types of payouts and funds
transfer transactions, namely EPCS, PDDTS, and SWIFT. It allows companies to upload their
payout fi le, authorize payments, and transmit funds transfer requests online.
It saves companies time and money as they don’t have to go to the branch. With 24/7
access, it is also very convenient to process transfers anytime. ePayout allows users to
batch upload a single fi le containing multiple transactions, which puts an end to fi lling
up individual forms for every transaction. Authorized signatories can view and approve
uploaded payments by batch using only one password. And as long as the processing is
done before cutoff, funds are released within the same day. It also allows an audit trail for
easier reconciliation.
All these do mean one thing: automated electronic funds transfers. No more
paperwork, no more manual approvals, no more lining up at the branch, and no more
missing cut-offs. Just fast, convenient, and secure transfer of funds, just as it should be.
45
THE LONG TAIL
What do doctors, DIYers, HR managers, fraternity brothers, environmentalists, and fans of baby back ribs
have in common? Take a wild guess. If you answered “UnionBank Credit Cards,” you guessed right.
It used to be that credit cards were segmented by basic demographics: income, gender, and age. That’s
conventional marketing. But the marketplace for products and services, including financial products, has shifted
dramatically in the past decade.
From mass markets to niche segments, top-down to bottom-up, product-driven to consumer-driven, our
economy is moving away from mainstream markets and products at the head of the demand curve toward a huge
number of niches in the tail. It’s what pundits call the “Long Tail.”
In the credit card market, there are as many potential card products as there are market niches. But most
credit cards being offered today are the traditional ones: cash cards, gas cards, grocery cards, and cards marketed
to women and the youth. That’s about it.
We at UnionBank, however, like to turn tradition on its head. We have long been the leaders in co-branded
and affinity cards, the former tied up with business entities and the latter issued for non-profits such as alumni
associations, campus, and professional organizations.
46
Smaller niches
Still, we wanted to go deep. For UnionBank, it’s not enough to issue credit cards for only the largest corporations
and associations. We wanted to provide a solution for smaller establishments and organizations and communities
to enable them to better serve their members and
support their funding needs. And we did.
Combining a keen understanding of market
needs and the use of new technologies, we have
been able to develop a range of cards that suit
the needs of specific groups and markets. For
instance, we introduced new card products for
the Philippine Academy of Ophthalmologists
(doctors), Home Depot (DIYers), the People
Management Association of the Philippines (HR
In the credit cards market, one size no longer fits all.
We have found a way to serve smaller, niche markets.
managers), Riviera Golf and Country Club (golf), Burgoo (lovers of American-style dining), and Racks (fans of baby
back ribs).
We have sliced and diced the credit card market into highly targeted categories such as dining cards, hotel
cards, school cards, professional organization cards, consumer gas distribution cards, cause-oriented cards, golf
cards, home-building cards, brotherhood cards, health and fitness cards, grocery cards, insurance cards, airline
cards, and so on. All in all, we have 28 co-branded and affinity cards, establishing UnionBank’s expertise and
leadership in these markets.
Standard features, customized benefits
Each of these cards has all the standard features of a UnionBank Credit card. Cardholders can pay on installment,
avail of discounts and promos, automatically charge their utility bills, pay for auto and accident insurance, receive
statements via e-mail, view and pay their bills online or by mobile, and access our 24-hour customer service.
At the same time, each card is unique with a highly customized design and extra benefits that are
relevant to their cardholders. For instance, the Cebu Parklane Visa is a credit card and hotel privilege card
in one. Adamson which allows members to make an additional donation by choosing how much to donate
and how often, The Riviera Golf Visa lets members charge their club membership and monthly dues. And the
Home Depot Visa offers special delayed billing payment plans for contractors and household owners who wish
to renovate.
This is just the start. As we identify more niche
markets and engage communities, we will introduce
more and more co-branded and affinity card
products that address their specific and relevant
needs.
In the Long Tail economy, it’s about different
products for different needs. “One size fits all” is
no longer true. And for the credit card market, here
at UnionBank, we only have one goal in mind: one
card that fits you.
47
GIVING GOES SOCIAL
48
With U-Share, we help non-profits build an online
community of advocates
The website of Santuario de San Vicente de Paul (www.santuario.com.ph) is not much
different from most non-profit sites, with pages about its history, causes, and projects, except for
one thing: there is a running meter showing the amount of donations it has received so far.
Dig deeper and you will find that supporters can give their donations online. You will
also see that you can subscribe to the non-profit’s SMS application and receive daily quotes
and reflections to your mobile phone. And, by the way, you can “like” St. Vincent de Paul on
Facebook, the number one online social network worldwide.
It is quite remarkable considering that you would normally associate online payments,
mobile apps, and social networking to businesses, not non-profits. Kudos to whichever
e-commerce company, web development firm, or advertising agency put everything together,
right? Well, what may surprise is who is behind all these: UnionBank.
We created the microsite of St. Vincent de Paul to help them promote their cause. We set up
functionalities to accept online and mobile payments, developed a donation meter, helped open
the necessary EON and Business Check accounts to manage their funds, and linked donations to
a web-based integrated reporting dashboard that allowed the officers of the non-profit to view
collection reports, such as who donated, from where, and how much. We set up a Facebook page
to help build traffic to their website. We put together an SMS content deal with a major content
provider for the leading telcos. These are all part of our new service we call U-Share.
But what has a universal bank got to do with developing web and mobile content and
applications? And why even bother with non-profits?
Learning from the past
It all started with Kalipay Negrense, a non-profit organization based in Bacolod and a UnionBank
customer. Kalipay had been using UnionBank EON, a deposit product more widely used by
e-commerce business and online micro-entrepreneurs for linking their PayPal accounts for both
funding and withdrawals. Apparently, Kalipay solicits donations online from its community of
grant organizations and funders.
The story reached UnionBank Chairman Justo A. Ortiz. EON, online payments, community –
certainly right up the Bank’s alley. But the non-profit element of it all was too intriguing to ignore.
Why aren’t more non-profits doing this? And why is no one really helping them?
UnionBank decided to look into how it can do its part to help. We took lessons from
calamities such as the Ondoy floods, the Haiti earthquake, and the Katrina storm on how people
communicated via social media and SMS and gave donations instantly using micropayments. We
realized that social media and mobile communications gave people immediate affiliation to the
cause while online payments gave them the ability to immediately act.
The more we studied how non-profits work, the more we discovered what they need.
Some of them do not have an online presence. Others have websites that are not professionally
designed. Many have not tapped online social networks.
We thought, well, we have the resources. We have expertise in online payments. We have
a multi-awarded web development team. We have the technology platform. We are big on social
media. And we are advocates of Ubuntu, the concept of helping and sharing within a community.
And so we pushed the idea further by introducing web design, mobile applications, social
network integration, and backend reporting to our service. U-Share is one solution that can help
non-profits create wider awareness to their cause, open them up to potential donors, and report
back to their principals.
We launched U-Share in late November and went live with our first site in mid-December.
We held a road show in Cebu and Davao and have presented the service to different non-profits.
And the response has been overwhelmingly positive.
An underserved market
Non-profits are an underserved market for banks. Universal banks cater mainly to large
corporations. Most have started to tap the small and mid-sized enterprises. Some have even
dabbled into the microfinance sector. But practically everyone has been ignoring non-profit
organizations.
The non-profit world encompasses a wide array of players: small charities, corporate
foundations, philanthropic organizations, educational institutions, parish churches, faith-based
organizations, microfinance institutions, socio-civic organizations, industry associations,
homeowners associations, alumni associations, and civil society groups. And they all have
banking needs.
UnionBank decided to turn this need into a service that allowed non-profits to receive
donations online via PayPal, credit cards, Megalink ATM, BANCNET, international direct
debit and mobile load. In turn, these donations are automatically credited to an EON or
BusinessCheck account that gives them easy access to their funds and a convenient way to
withdraw funds or disburse checks. For them, web and mobile payments offer speed and
convenience.
UnionBank saw the need to connect these non-profits to their community of supporters,
donors, and volunteers using technology and financial services. Especially for smaller charities
in far-flung provinces, giving them the ability to receive donations fast and efficiently rather
than wait for weeks for international checks to clear, manage these funds more efficiently
through a web-based integrated collection reporting tool, and easily report back to their
partners and principals are definitely empowering.
As for Santuario de San Vicente de Paul, so far, they continue to attract a lot of online
attention for their Project 350 fundraising campaign to complete the building of the Sanctuario
shrine and a community in the service of the poor. They also add to their funds their share
of revenues from SMS subscriptions for daily quotes and reflections. The money generated
through online micropayments and mobile subscriptions augment what they receive through
traditional channels.
It is fulfilling for us to empower non-profits with technology and financial tools that can
help more people become aware of their mission and give their supporters different ways to
share in a cause they believe in. U-Share is our way of connecting non-profits together with
their community of partners, donors, and supporters. And it is another way for UnionBank to
be one with those who are most in need.
49
RESPONSIBLE CITIZENS,
RESPONSIVE GOVERNMENT
50
Last September 13, 2010, over half a million Grade 2 public
school students across the Philippines opened a workbook designed
to teach them how to read and, at the same time, how to be a better
citizen. This is no ordinary workbook. It is a part of The UnionBank
Learning System: Developmental Reading Integrated with Values
Education for Good Citizenship.
The Corporate Philanthropy and Social Responsibility (CPSR)
Program of UnionBank, launched in 2007 in partnership with the
Department of Education, has been highly successful in achieving
its objectives of teaching Filipino public school students at the
Grade 2 level.
“UnionBank has hit a strategic point in our educational
system,” notes Dr. Jesus P. Estanislao, founder of the
Institute for Solidarity in Asia (ISA). He adds, “The second
grade is important. We can still help them at Grade 1 or
2. This is where most children are still in school, because
when they reach the fourth grade, the dropout rate is
already very high.”
The UnionBank
Learning System
includes a
Student’s Workbook for every Grade 2 pupil, teacher, principal,
district head, and division coordinator; a Teacher’s Handbook
for all Grade 2 teachers, principals, district heads, and division
coordinators; and a Multimedia Teaching Video Set for every school,
district and division.
Dr. Estanislao says, “UnionBank is doing a great job in
implementing a proper values educational program connected with
citizenship. Their well-designed learning materials are important in
the teaching of English.”
Simultaneously rolling out the program nationwide for the
school year 2010-2011 was a major milestone. The UnionBank
Learning System reached unprecedented numbers: 533,000
Grade 2 public school pupils and 12,500 Grade 2 public
school teachers in 5,200 public elementary schools in the
National Capital Region, Central Visayas, Davao Region,
Nueva Ecija, Sarangani,
Basilan, and TawiTawi.
Since 2007,
UnionBank has
reached over
1.4 million
primary
public school
pupils and
24,000
teachers,
and has
distributed 11,500
teaching books
and 6,000
multimedia
teaching
video sets.
This is indeed
UnionBank’s GIFT TO THE FILIPINO NATION. Dr. Estanislao states,
“UnionBank has taken the lead in Grade 2 education. If we can get
11 other institutions to cover each grade, Filipino children would
have greater chances of shaping their future.”
Supporting public governance
Prior to founding ISA, Dr. Estanislao, an internationally recognized
economist, established the Institute of Corporate Directors to
promote corporate governance. Later, he says, “We realized your
work won’t go far without proper public governance.” And so he
formed ISA as a collaborative network of sectoral leaders, public
officials, and citizens committed to governance in all aspects and
levels of society.
A firm believer in specific action steps and measurable results
and not just rhetoric and generalities, Dr. Estanislao and ISA
developed the Performance Governance System (PGS) based on
the Balanced Scorecard technology (BSC), a management tool for
tracking performance developed at the Harvard University Business
School. PGS translates statements of governance and vision to
actionable strategies and commitments leading to the realization
of breakthrough results. “We provide support to institutions and
organizations in improving themselves in the delivery of public
services. UnionBank and ISA have built an exciting relationship that
is founded on the idea that we are here not to do things ourselves,
but to help others help themselves,” says Dr. Estanislao.
Recognizing the importance of public governance in nationbuilding and how as an organization it can play a role in helping
shape the country’s long term development, UnionBank joined
forces with ISA in 2007. Since then, it has extended support in
installing a governance system in the Philippine National Police
Academy (PNPA), Cebu Province, and in 2010 the Philippine
National Police (PNP). UnionBank has also regularly supported the
staging of ISA’s semi-annual Public Governance Forum – a venue for
public performance reporting by national government agencies and
local government units.
Dr. Estanislao shares, “Both UnionBank and ISA are committed
to help others in the process of development. We find in UnionBank
a soul mate and genuine partner in promoting social responsibility.”
ISA has worked with about a third of the country’s cities, or
40 out of 120. It has also covered 10 national government agencies,
with plans to cover 75 percent of all national government agencies
in the next two years. Many are in the Initiated Level, the first of
four stages in the Governance Pathway of the PGS (followed by
Compliant, Proficient, and Institutionalized).
Already, there are several success stories that have yielded
breakthroughs in delivery of social services, stakeholder
satisfaction, and financial autonomy, including Iloilo City, Iloilo (the
first Balanced Scorecard Hall of Famer); San Fernando, Pampanga
(the first Maharlika Hall of Famer); the Philippine Navy, and
National Electrification Administration, among others.
The PNP is in the first stage of the Governance Pathway and
will take a few more years to reach the top level. “Fortunately the
PNP leadership is committed to transform the organization into a
police force we can be proud of,” Dr. Estanislao says. “UnionBank
and ISA cannot do it by ourselves but together we can help go from
where it is to where it should be,” he adds.
About three years ago, the PNP was initiated into the System.
The PNP has spent a considerable amount of time cascading its
strategy map through all layers of the organization. By next year,
it should have trained all personnel down to the precinct level,
using a mechanism for checking actual performance to pre-agreed
standards. “It will be a radical change,” Dr. Estanislao promises,
“Within two to three years we will have a completely different
police force.”
As part of the Aboitiz Group, it is also natural that
UnionBank has also been involved with ISA in sponsoring the
Cebu Province Roadmap. As in many provinces, politics in Cebu
can be personality-based. ISA has helped lay the foundation for
various stakeholders in Cebu to get together and create its strategy
map. It is now working to make Mandaue City become a model of
public governance.
UnionBank fi rmly believes that we are all connected as one.
Whether helping Filipino children read and become responsible
citizens or supporting national agencies and local government
units transform themselves into responsive and effective
institutions, UnionBank shares a responsibility and contributes its
part in nation-building.
A Portrait of CSR as UnionBank CPSR
2010 Milestone: The UnionBank Learning System was
simultaneously rolled out and implemented covering the entire
National Capital Region (NCR), Region VII (Central Visayas),
Region XI (Davao Region) and the Schools Divisions and
Districts in Nueva Ecija, Sarangani, Basilan and Tawi-Tawi.
This benefited:
• 533,000 Grade 2 public school pupils;
• 12,500 Grade 2 public school teachers; and
• 5,200 public elementary schools
Since its initial implementation in 2007 to date, UnionBank
CPSR has distributed nationwide more than:
•
•
•
•
1,400,000 Student’s Workbooks;
24,000 Teacher’s Handbooks;
11,500 Teaching Books; and
6,000 Multimedia Teaching Video Sets
Other UnionBank CPSR Programs
Continuing partnership with:
1. Ramon Aboitiz Foundation Inc. (RAFI) for the Young Mind’s
Academy (YMA) targeting the high school students from
public and private schools:
Year
2008-2009
2009-2010
2010-2011
Season Theme
Season 3 – Education
Season 4 – Governance
Season 5 – Poverty and Social Welfare
2. Christ’s Youth in Action (CYA) for the Youth Leadership
Development Program at the college/university level,
designed to develop values and people skills, and to equip
the youth to be good citizens, servant leaders, and men and
women of integrity and competence.
Year
2010
Program
Youth Leadership Development Program
3. Institute for Solidarity in Asia (ISA)
Year
2007
2007
2010
Program
Roadmap for PNPA
Roadmap for Cebu Province
Roadmap for PNP
4. Aboitiz Foundation, Inc. for the Kapit Bisig Para sa
Ilog Pasig (KBPIP); a program designed to rehabilitate
relocated communities from the Pasig River areas:
Year
2010
Program
Bayanijuan sa Southville 7
Support for the:
1. Ateneo Art Awards showcasing and recognizing the
talents of young Filipino artists
Year
2007-2010
Program
Ateneo Art Awards Presentor
2. National Movement for Free Elections (NAMFREL)
during national elections in support of the citizens’ poll
watch
Year
Program
2004, 2007, 2010 NAMFREL Support
3. National Bible Quiz which brings together youth
in the secondary level from private and parochial
schools for the purpose of developing idealism, social
consciousness and life orientation through the Bible
Year
2010-2011
Program
National Bible Quiz
4. Mary’s Missionaries for Evangelization (MME) Formation
& Skills Development Center, with programs designed
for the formation and skills development for youth
trainers
Year
2010
Program
MME Formation & Skills Development
Center
5. Grant to the University of the Philippines (UP)
Foundation, Inc. for the UP School of Economics to
finance four interdependent programs in two phases:
(1) establishment of a UnionBank Professorial Chair in
Economics; (2) an annual support to a Research Program
in Financial Economics; (3) a scholarship and research
assistance support; and (4) a facilities-improvement
Project of the UPSE consisting of the establishment of
the UPSE Center for Financial Economics
Year
2010
Program
UP Foundation, Inc./UP School
of Economics
51
LEADERS AND ACHIEVERS
52
UnionBank Visa Platinum Card, Visa Gold Card and
Visa Debit Card
For: Highest Average Spend Growth for Visa Platinum Card,
Highest Transaction Count Growth for Visa Gold Card, and
Highest Payment Volume Growth and Highest Transaction
Count Growth for Visa Debit Card
Because of: the outstanding performance of UnionBank’s credit
and debit cards businesses
Given by: Visa Inc.
Based on: a survey the increase in average spend per card by
41 percent for Visa Platinum, growth in transaction volume
by 14 percent for Visa Gold, and the surge in transaction
volume and payment volume of 43 percent and 45 percent,
respectively, for Visa Debit
UnionBank
For: Best Corporate Governance, Best Corporate Social
Responsibility, and Most Committed to a Strong Dividend
Policy, making UnionBank the only bank among the
top 10 Philippine companies
Given by: the 10th Annual Finance Asia Polls, conducted by
Finance Asia, a Hong Kong-based publication reporting on
Asia’s financial and capital markets
Based on: a survey of more than 300 investors and analysts across
Asia Pacific
UnionBank Trust and Investment Services Group
UnionBank
For: Best Medium Term Philippine Peso Bond at the
2010 Lipper Fund Awards
Because of: for displaying consistently strong risk-adjusted
returns relative to its peers, adjudged as the best among
14 funds evaluated under the Lipper Leader Rating System
Given by: Lipper, a global leader in supplying mutual fund
information and fund ratings
Based on: the Lipper Leader Rating System, which measures a
fund’s success against a specific set of key metrics, namely
Total Return, Consistent Return, Preservation, Tax Efficiency,
and Expense.
For: being in the top 25 Philippine companies for achieving
a high ranking in the latest Wealth-Added Index (WAI),
making it among only four banks that made the list
Because of: delivering good returns to its shareholder
Given by: Stern Stewart & Co., a New-York based worldwide
management consulting fi rm
Based on: the company’s performance over five years using
a metric that attempts to measure wealth created for
shareholders by a company, adjusted for dividends, shares
issued, spinoffs, stock splits, and any other transactions to
properly account for the economic return to equity holders
UnionBank Trust and Investment Services Group and Trading,
Positioning and Funds Management Center
For: Most Astute Investors
Given by: The Asset Magazine, a media company that provides
authoritative unbiased coverage and independent research of
Asia’s financial industry
Based on: outstanding fund performance. The Bloomberg Fund
Performance Chart - 5-year return shows that UnionBank is
No. 1 for its Large Capital Philippine Equity Portfolio among 23
peso equity funds; No. 1 and No. 4 for its Philippine Peso Bond
Portfolio and Dollar Bond Portfolio, respectively, from a total of
84 bond funds. The UIF Rankings as of end-2009 of the Trust
Officers Association of the Philippines also puts UnionBank
No. 1 for its Current Income T-Bill 91 Fund and No. 2 for its
Infinity Prime Fund among intermediate peso bond funds; No.
1 for both its Peso Bond Fund and Dollar Bond Portfolio in the
medium-term funds category; No.1 for its Long Term Current
Income Fund; No.1 for its Tax Exempt Portfolio, and No.3 for its
Large Capital Philippine Equity Portfolio
53
IRONCLAD
INFORMATION
54
Financial institutions can always claim that information security is a top priority.
With its ISO 27001:2005 ISMS Certification, UnionBank puts its money where its mouth is.
Information is the lifeblood of many businesses. Once critical information – such as customer
data, strategic plans, or financial information – is leaked, stolen, or made inaccessible, it could
be detrimental to a company. Think of loss of market share or competitive advantage, service or
operational disruption, and damage to image or reputation.
For financial institutions, the threat to information security is even more pronounced. You have
probably read about reports about hacking, spoofing, snooping, and fraud. And you certainly have
experienced system crashes, ATM downtime, and inaccessible e-banking services.
You see, information assets come in numerous forms: databases, financial data, contracts,
reports, records. And there are many factors that affect their security, such as people, equipment,
and infrastructure, each having potential vulnerabilities or weaknesses that could be exploited by
external and internal threats, resulting to potential risks.
And there are plenty of possible risks: former employees motivated by personal gain or revenge,
reports left lying around, laptops getting stolen, servers crashing, power getting cut off, terminal
displays unattended, natural calamities destroying documents, unsupervised contractors stealing
data, hackers accessing computer networks.
Information security
All these risks may not be totally eliminated, but they can certainly be reduced. And the
evaluation and mitigation of risk is the goal of an Information Security Management System
(ISMS) for any organization that handles information.
At UnionBank, we take information security very seriously, to ensure confidentiality,
integrity, and availability of information. It is very important for us to secure information for the
protection of our shareholders, employees, partners, and customers. That is why our Chairman
Justo A. Ortiz has tasked our Technology Management Services (TMS) Unit to be ISMS certified.
After an entire year of rigorous evaluation, documentation, and audit by TUV Rheinland,
nd
an accredited ISO auditor, we were able to achieve the ISO 27001:2005 ISMS Certification,
n,
making our information technology group the fi rst among local banks in the country to obtain
certification for this specific ISO standard.
ISO 27001 defi nes best practices for Information Security Management, as established by
the International Organization for Standardization (ISO). It specifies the requirements for
establishing, implementing, operating, monitoring, reviewing, maintaining and improving a
documented Information Security Management System within the context of the organization’s
overall business risks. It also specifies requirements for the implementation of security controls
customized to the needs of individual organizations. Without a formal ISMS, such as an ISO
27001 based system, security will be breached sooner or later.
With this ISO 27001:2005 ISMS Certification, UnionBank further enhances the security of the
customers’ data, the Bank’s assets, and credibility. This is proof of our commitment to delight
customers, keep clients’ confidentiality, and provide highly reliable services. In addition, the
certification gives us new business opportunities as prospective clients are assured that they can
truly trust UnionBank.
The Bank likewise obtained ISO 9001:2008 certification in 2010, an upgrade from our
previous ISO 9001:2000 Quality Management System (QMS) Certification received in 2008,
when it was acknowledged as the fi rst and only bank awarded for its entire centralized
backroom operations also by TUV Rheinland. We are proud to be report that we were
certified as having zero non-conformance during its quality audit in 2009 and 2010,
demonstrating the Bank’s dedication to uphold quality in our business processes.
4 Myths & Facts about ISO Certification
Myth #1: There is nothing special about your ISO certification since many banks are also
ISO-certified.
Fact: It is true that many financial institutions are ISO-certified but they may not be
certified to ISO 27001 standards or the scope of their ISO 27001 certification may not be
as broad. This may cover only a part of a full ISMS certification, which is really an allencompassing system that involves our entire organization’s information security policies
and processes.
Myth #2: Some financial institutions have been ISO-certified much longer than you.
Fact: ISO certification is issued for one year only renewable annually for a total of
three years. So it needs to be monitored every year to make sure the organization not
only complies with the standards but continually improves its policies, processes,
and practices to stay updated. In the case of our previous ISO 9001:2000 Quality
Management System (QMS) Certification, which we received in 2008, we were able to
upgrade it to ISO 9001:2008 certification in 2010.
Myth #3: Information security is just about keeping computer networks and systems
secure from hackers and unauthorized personnel.
Fact: ISO 27001:2005 ISMS Certification is more than that. It is the result of the evaluation,
improvement, and audit of all aspects of information security – asset management,
human resource, security, physical and environmental security, communications and
operations management, access control, acquisition and maintenance of information
systems, business continuity management, and compliance.
Myth #4: Information security means you will never have system or ATM downtime and
other information risks.
Fact: ISMS mitigates risks, not eliminate them. What our ISO 27001:2005 ISMS
Certification ensures, however, is we are able to reduce or prevent any risk that we have
already identified. There is, of course, always a possibility of threats from unforeseen or
unidentified risks. But, since we intend to upgrade our certification regularly, we will be
able to mitigate these new risks.
55
PRODUCTS AND SERVICES
56
CASH MANAGEMENT SERVICES
• OneHub
- BIR eFPS (Electronic Filing and
Payment System)
- SSSHub
- PhilHealth ePay
- Customs, Duties ePay
- Pag-IBIG Hub
- PEZA Auto-IP Electronic Payments
• Electronic Settlement Services
(Internet-Based Facilities)
- GSIS eCardPlus
- UPASS (UnionBank Premiere
Automated Settlement System)
- Corporate Electronic Funds Transfer
- EIPP (Electronic Invoice Presentment
and Payment)
- Secure.Pay (Corporate B2B Online
Settlement)
- Corporate Bills Payment
- ePayout Portal
- H2H (Host to Host Facility)
• Online Information Management
- Corporate eBanking (Internet
Account Inquiry)
- Corporate Mail Services (Auto email/
SMS notification)
• Fund transfers
• Returned checks
- Union Infoline
- Union Statement of Account (SOA)
• Liquidity Management
- UnionBank Advantage
(Sweeping, Pooling)
- UnionBank TITF
• Corporate Payouts
- UnionBank Checkwriter
- BusinessCheck
- UnionBank ePayCard
- eZCash
- ePayroll
- My Payroll
• Corporate Collections
- UnionBank RoadRunner
(Corporate and Lite)
- UnionBank Checkhouse
- UnionBank Bills Payments
- UnionBank Business Deposits
- MERALCO Automatic Debit
Arrangement
- Cash Mob
• Special Projects
- Unified Multi-Purpose ID Project
LOANS
• Auto Loans
- Brand new vehicles
- Pre-owned vehicles
• Housing Loans
- Optima Home Loan
- Home Equity Loan
- SSS Funded Home Loan
- Joint UnionBank-SSS Housing Loan
- Contract to Sell Financing
• Salary Loans
• Peso Loans
• US Dollar Loans
• Term Loans
• Post Dated Check Discounting
• Project Loans
• Back-to-back Loans
• UnionBank BusinessLine
• UnionBank BusinessLine Agri
(for Contract Growers)
• UnionBank BusinessLine
for Feed Dealers
• UnionBank BusinessLine
for Franchisees
• UnionBank BusinessLine MD
• UnionBank MyLine
• UnionBank San Mig Line
• UnionBank MEP Line
• Other Credit Facilities
- Domestic Bills Purchase
- Foreign Bills Purchase
- Foreign Exchange Facilities
- Performance Guarantee
- Bid Security
- Special Funded Loans
- Standby Letters of Credit
- Business Loans
TRADE FINANCE AND SERVICES
• Imports
- Import Letter of Credit
- Open Account (OA)
- Document against Payment (DP)
- Document against Acceptance (DA)
- Advance Payments
- Direct Remittances
- Customs Duties
- Import Financing
• Exports
- Export Letter of Credit Advising
- Export Financing
- Export Collection
• Standby Letter of Credit
• Domestic Letter of Credit
• Other Bank Guarantees
CREDIT CARDS
• UnionBank Branded Cards
- UnionBank Classic
- UnionBank Gold
- UnionBank Platinum
- UnionBank Corporate Card
• Co-Brand Cards
- Medicard Visa
- Slimmers World Visa
- Makro Card
- Suy Sing Visa
- Mapfre Insular Visa
- SEAIR Visa
- Insular Life Visa
- Burgoo Visa
- Racks Visa
- Cebu Parkland Visa
- Home Depot Visa
- Metro Gas Visa
- Riviera Golf Visa
• Affinity Cards
- Ateneo Alumni Association Visa
- La Salle Alumni Association Visa
- La Salle Visa
- Don Bosco Alumni Visa
- Lourdes School Alumni
Association Visa
- Assumption Alumnae Association Visa
- Philippine Medical Association Visa
- Colegio De San Juan De Letran Visa
- University of Sto. Tomas Visa
- University of the East Alumni
Association Visa
-
St. Paul’s University Manila
San Beda College Alumni Association
Adamson University Visa
Alpha Phi Omega
People Management of the
Philippines Visa
- Philippine Academy of Ophthalmology
- Haribon Foundation Visa
• Specialty Cards
- UnionBank Titanium
- UnionBank Bai
- UnionBank OmniPass
- UnionBank Shop&Talk
VISA DEBIT CARDS
• EON Card
• E-Wallet Card
• Co-Brand Card
- Suy Sing Super Grocer Card
- Kainos Health Card
VISA PRE-PAID CARDS
• EZ Cash
• Co-Brand Card
- St. Peter Life Plan Card
- Semicon Loyalty Card
- DI BA Agents Card
- Club Balai Isabel
57
PRODUCTS AND SERVICES
58
DEPOSIT PRODUCTS
• Regular Savings Account
• Regular Checking Account
• Premium Deposit Account
• Peso Time Deposit
• Peso Optimizer
• Peso Hi Five
• Power Checking Account
• US Dollar Savings Account
• US Dollar Time Deposit
• Access Dollar Account
• Third Currency Savings and
Time Deposit Account *
- Australian Dollar (AUD)
- Canadian Dollar (CAD)
- Euro (EUR)
- Hong Kong Dollar (HKD)
- Japanese Yen (JPY)
- Singapore Dollar (SGD)
- Swiss Franc (CHF)
- United Kingdom Pounds (GBP)
* Selected branches only
• BusinessCheck
• BusinessCheck Enterprise
GLOBAL FILIPINO
• Pinoy Money Card (Online
Remittance)
INVESTMENT PRODUCTS
• Peso Treasury Bills/Notes/
Treasury Bonds
• Peso Preferred Shares
• Peso Tier 2 Notes
• Peso LTNCD
• Peso Time Deposit
• Peso Optimizer
• Peso Hi-Five
• US Dollar Time Deposit
• US Dollar ROP Bonds
• US Dollar Local Corporate
Bonds/Notes
• Third Currency Time Deposit
• Other Treasury Products
- Foreign Exchange – Spots and Forwards
TRUST SERVICES
• Personal Investment Management
• Unit Investment Trust Funds
• Retirement Fund Management
• Corporate and Institutional
Investment Management
• Escrow Agency
• Mortgage Trust Indenture
• Custodianship
INVESTMENT BANKING SERVICES
• Corporate Finance
- Equity Underwriting
- Debt Underwriting
- Private Placements
• Syndicated Lending and
Project Finance
- Loan Arrangements
- Loan Syndications
- Specialized Lending Facilities
• Advisory Services
- Financial Advisory
- Mergers and Acquisitions
- Corporate Restructuring
INTERNET SERVICES
• www.unionbankph.com
• Business Online
• The Port (Internet Payment Gateway)
PRIORITY BANKING
• Business Class
• Corporate Business Class
• Doctors’ Business Class
- I-Care Doctors’ Business Class
- Medicard Doctors’ Business Class
PRE-NEED
FIRST UNION PLANS
• Income Fund Product
• Income Fund Product II
- Cash Contributor
- Asset Accumulator
- Future Funder
- Prime Provider
REAL PROPERTY DEVELOPMENT
UNION PROPERTIES, INC.
• Kingswood Makati Condominium
(Vito Cruz Extension corner
Pasong Tamo, Makati City)
• UnionBank Plaza (Meralco Avenue
corner Onyx Road, Ortigas Center,
Pasig City)
• G.A. Cu Unjieng Centre (Dasmariñas
corner Q. Paredes, Binondo, Manila)
OTHER SERVICES
• Foreign/Domestic Collections
and Remittances
- Fund Transfers
- Manager’s Checks
- Peso/Dollar Demand Draft
- Peso/Dollar Telegraphic Transfer
- PDDTS (Philippine Domestic Dollar
Transfer System)
• Purchase and Sale of Foreign
Exchange
• HMO Collection Suite
• Fund Raising Services for Non-Profit
Organizations (NPO)
- Mobile Donations
- Online Donations
59
New Branches (Year 2010 to April 2011): 2nd Avenue-BGC • 5th Avenue-BGC • ABS-CBN • Aurora-Balete Drive • EDSA Pioneer • Eastwood City • Greenfield District
• ICTSI-Port Area • NAIA Terminal 1 • Newport City • Ozamiz City • Puerto Princesa City • Renaissance Tower • San Fernando, La Union • St. Francis Shangri-La Place • Vertex One-San Lazaro
Eastwood City Branch
BRICK AND MORTAR
METRO MANILA /
GREATER MANILA AREA
MAKATI CITY
AGUIRRE
B&M Building, 116 Aguirre St.
Legaspi Village, Makati City
(02) 818-5470
(02) 815-8789 TEL/FAX
AMORSOLO
G/F UnionBank
Amorsolo Building
142 Amorsolo St.
Legaspi Village, Makati City
(02) 810-3310
Loc. 8101, 8108-8110
(02) 840-4646 FAX
AYALA AVENUE
G/F Don Vicente Madrigal Bldg.
6793 Ayala Ave., Makati City
(02) 891-5852 to 53
(02) 891-5519
(02) 891-5851 (FAX)
62
AYALA-RUFINO
Rufino Bldg., Ayala Avenue
corner V. Rufino St., Makati City
(02) 810-1325
(02) 811-0510
(02) 810-1466 FAX
AYALA-SSS
SSS (Makati) Building
Ayala Avenue corner
V. Rufino St. Makati City
(02) 848-6805
(02) 848-6806
(02) 585-1030
(02) 813-4620 TEL/FAX
DASMARIÑAS VILLAGE
Solid House Building
Lumbang St. corner
Pasong Tamo Extension
Makati City
(02) 892-6879
(02) 811-3695
(02) 813-6726 TEL/FAX
GREENBELT
Twin Cities Condominium
110 Legaspi Street
Legaspi Village, Makati City
(02) 812-9601
(02) 818-1822
(02) 818-1821 FAX
PASONG TAMO
La Fuerza Building
2241 Pasong Tamo Street
Makati City
(02) 812-3419
(02) 817-7270
(02) 893-2933 FAX
H.V. DELA COSTA
138 Global Enterprise Bldg.
H.V. Dela Costa St.
Salcedo Vill., Makati City
(02) 813-1286
(02) 813-1363
(02) 585-0977
(02) 813-1337 FAX
PASONG TAMO-JTKC
G/F JTKC Center
2155 Pasong Tamo St.
Makati City
(02) 840-4779
(02) 840-4783 & 85
(02) 840-4782
INSULAR AYALA-PASEO
G/F Insular Life Building
Ayala Avenue corner
Paseo de Roxas Ave.
Makati City
(02) 813-5992
(02) 840-0168
(02) 840-5880 FAX
J.P. RIZAL
731 J.P. Rizal Street, Makati City
(02) 897-1085
(02) 897-6976 FAX
MAKATI AVENUE
Makati Ave. corner Durban St.
Poblacion, Makati City
(02) 895-1774
(02) 585-1043
(02) 899-1544 FAX
(0917) 827-0371
PASAY ROAD
912 Gemland Commercial Bldg.
Pasay Road, San Lorenzo
Village, Makati City
(02) 752-7120 to 21
(02) 813-5430
(02) 843-8298 FAX
PASEO DE MAGALLANES
G/F Maga Center Building
Paseo de Magallanes
Makati City
(02) 851-3803
(02) 851-3802 TEL/FAX
PASONG TAMO EXTENSION
G/F Priscilla 100 Bldg.
2297 Pasong Tamo Extension
Makati City
(02) 892-0001
(02) 892-0990
(02) 892-0307 FAX
PEREA
G/F Greenbelt Mansion
Perea St., Legaspi Village
Makati City
(02) 818-6941
(02) 752-0986
(02) 813-6594
(02) 894-3187 FAX
VALERO
Le Grand Condominium
130 Valero St.
Salcedo Village, Makati City
(02) 819-5426
(02) 830-0680
(02) 585-1033
(02) 818-3052 TEL/FAX
VALERO-ANTEL
G/F Antel Platinum Tower
154 Valero St., Salcedo Village
Makati City
(02) 752-4435 to 36
(02) 585-1034
(02) 843-7005 FAX
(0917) 827-0463
VITO CRUZ
Kingswood Arcade
Vito Cruz corner
Pasong Tamo Sts., Makati City
(02) 899-2772
(02) 890-1665
WORLD CENTRE
330 Sen Gil J. Puyat Ave.
Makati City
(02) 867-8560
(02) 867-8377
(02) 867-8376 FAX
CITY OF MANILA
RADA
Prince Building
117 Rada St., Legaspi Village
Makati City
(02) 893-4318
(02) 585-0979
(02) 818-9731 FAX
SALCEDO
Golden Rock Building
168 Salcedo St., Legaspi Village
Makati City
(02) 893-7056
(02) 818-8075
(02) 818-8078 FAX
BINONDO
Haphong Bldg., Quintin Paredes
corner Dasmariñas St.
Binondo, Manila
(02) 243-8201 & 04
(02) 243-5230
(02) 244-4277 FAX
DASMARIÑAS
G. A. Cu-unjieng Building
Q. Paredes corner
Dasmariñas Streets
Binondo, Manila
(02) 245-7191
(02) 585-9839
(02) 242-9372 FAX
(0917) 827-0353
DIVISORIA
Hin Long Building
719 Juan Luna corner
Sta. Elena St., Manila
(02) 242-9071
(02) 242-9075 TEL/FAX
MASANGKAY
911-913 G. Masangkay St.
Binondo, Manila
(02) 241-5364
(02) 243-7676
(02) 241-4047 TEL/FAX
NEW DIVISORIA MALL
Stall Nos. UG 5-6 Sto. Cristo St.
corner M. de Santos St.
Binondo, Manila
(02) 244-4274
(02) 244-4275 FAX
MAYHALIGUE
G/F One Masangkay Place 1420
Masangkay near corner
Mayhaligue St., Sta. Cruz
Manila
(02) 252-5446 to 47
(02) 252-5457
(02) 252-5456 FAX
ERMITA-MABINI
1336 A. Mabini Street
Ermita, Manila
(02) 526-4812
(02) 525-1218 TEL/FAX
ESCOLTA
G/F Regina Building
Escolta, Manila
(02) 245-8955
(02) 241-8544
(02) 242-4483
(02) 241-6508 (FAX)
ICTSI
G/F ICTSI Administration Bldg.
Manila International Container
Terminal, MICT South Access
Road
Port Area, Manila
(02) 244-1864
(02) 585-1265
(02) 241-8303 FAX
(0917) 827-0281
INTRAMUROS
G/F BF Condominium Bldg.
A. Soriano, Jr. Avenue
Intramuros, Manila
(02) 404-1720 to 21
(02) 521-8873 FAX
MALATE
G/F Marioco Building
1945 M. Adriatico St.
Malate, Manila
(02) 525-2741 to 42
(02) 585-9844
(02) 525-2725 FAX
(0917) 827-0354
PANDACAN
1763 Paz M. Guazon St.
Paco, Manila
(02) 564-0535
(02) 564-0537
(02) 564-0541 FAX
STO. CRISTO
LG01 and LG02 Burke Plaza
Sto. Cristo St., Binondo, Manila
(02) 244-4282 & 84
(02) 244-4286 FAX
SOLER
1148 Topsco Building
Soler Street, Binondo, Manila
(02) 245-7161
(02) 247-1711
TAFT AVENUE
2526 G/F Kassel Condominium
Taft Ave. near cor. P. Ocampo St.
Vito Cruz St. Malate, Manila
(02) 404-1533 to 34
(02) 404-1532 FAX
T. ALONZO
625 T. Alonzo Street
Sta. Cruz, Manila
(02) 736-9858
(02) 736-9098
TUTUBAN
Unit LH-PL12 and LH-PL12A
Looproad Shophouse
Prime Block Mall
Tutuban Center
C.M. Recto Ave., Manila
(02) 253-5960
(02) 253-5955
(02) 253-5939 FAX
UNITED NATIONS AVENUE
UN Ave. cor. M.H. del Pilar and
M. Guerrero Sts.
Ermita, Manila
(02) 525-2692
(02) 525-2698 FAX
VERTEX ONE-SAN LAZARO
G/F Space 12 & 13
Vertex One Bldg.
Felix Huertas St., Sta. Cruz
Manila (back of SM San Lazaro)
(02) 559-9781
(02) 585-8127
(02) 559-9792 TEL/FAX
KALOOKAN CITY
EDSA KALOOKAN
512 EDSA corner Urbano Plata
St. Kalookan City
(02) 330-9924
(02) 362-3008
(02) 585-0998
(02) 330-9922 FAX
(0917) 827-0395
KALOOKAN-9TH AVENUE
9th Ave. corner Rizal Ave.
Grace Park, Kalookan City
(02) 361-1165
(02) 366-9785
(02) 585-1000
(02) 585-1020
(02) 361-3755 FAX
KALOOKAN
357 Rizal Ave. Extension
Grace Park, Kalookan City
(02) 362-3829
(02) 362-1717
LAS PIÑAS
LAS PIÑAS-PAMPLONA
Alabang-Zapote Road corner
Crispina Avenue, Pamplona
Las Piñas City
(02) 874-3696 & 98
(02) 874-3702
(02) 874-8075 FAX
MALABON
MALABON
Gov. Pascual Ave.
corner Rivera St.
Malabon, Metro Manila
(02) 288-7392
(02) 288-7423
(02) 288-7382
MANDALUYONG CITY
BONI AVENUE
655 Boni Avenue corner Ligaya
St. Mandaluyong City
(02) 532-8737
(02) 533-1054
(02) 531-9489
(02) 533-1042 FAX
EDSA-PIONEER
Level 1, Robinson’s
Cybergate Plaza
EDSA corner Pioneer Street
Mandaluyong City
(02) 496-7466
(02) 477-4163
(02) 477-4164 TEL/FAX
GREENFIELD DISTRICT
Unit 5, Level 1, Soho Central
Greenfield District
Shaw Boulevard
Mandaluyong City
(02) 584-7538
(02) 584-7540
LIBERTAD-MANDALUYONG
Unit A2 Cluster El Dorado
California Garden Square
Libertad St. Mandaluyong City
(02) 470-2743
(02) 470-2710
MANDALUYONG
PICPA Bldg., 700 Shaw Blvd.
Mandaluyong City
(02) 726-9469
(02) 726-9466 FAX
ST. FRANCIS - SHANGRI-LA
PLACE
Tower 1 G/F Retail Internal Road
corner St. Francis Street
Brgy. Wack-Wack
Mandaluyong City
(02) 584-3633 to 34
(02) 585-8126
WACK-WACK
6 Shaw Boulevard corner
Laurel St., Mandaluyong City
(02) 725-2915
(02) 725-2919
(02) 725-1227 FAX
MARIKINA CITY
MARIKINA
233 J.P. Rizal St. corner Sta. Inez
Sta. Elena, Marikina City
(02) 681-6274
(02) 681-6184
(02) 369-7673
(02) 681-6227 FAX
MUNTINLUPA CITY
ALABANG TOWN CENTER
Makati Supermart Alabang
Alabang Town Center
Muntinlupa City
(02) 842-0488
(02) 842-0496 FAX
AYALA ALABANG
G/F NOL Bldg.
Commerce corner
Acacia Avenues,
Madrigal Business Park
Alabang, Muntinlupa City
(02) 809-0689 to 91
(02) 809-0694 FAX
MUNTINLUPA
12 Jayson’s Building
National Road, Putatan
Muntinlupa City
(02) 862-4667
(02) 862-1368 TEL/FAX
RICHVILLE
Richville Corporate Tower
Madrigal Business Park
Alabang Zapote Road
Alabang, Muntinlupa City
(02) 850-5164
(02) 850-5280
(02) 850-5636 FAX
NAVOTAS
NAVOTAS
807-817 M. Naval St.
Navotas, Metro Manila
(02) 282-7502 to 03
(02) 282-7506
(02) 282-7504 TEL/FAX
PASIG CITY
EMERALD AVENUE
G/F Wynsum Corporate
Plaza Bldg., Emerald Avenue
Ortigas Center, Pasig City
(02) 633-7604
(02) 633-7628
(02) 633-7599 FAX
JULIA VARGAS
G/F Centerpoint Building
Julia Vargas Avenue
Corner Garnet Road
Ortigas Center, Pasig City
(02) 633-5597
(02) 633-5595 TEL/FAX
MEDICAL CITY
B1 The Medical Arts Tower Bldg.
Medical City Hospital
Compound
Ortigas Avenue, Pasig City
(02) 633-3863
(02) 633-3862 FAX
PASAY CITY
GSIS
GSIS Main Office
Financial Center, Pasay City
(02) 551-4554
(02) 585-9863
(02) 551-4327 TEL/FAX
PASAY CITY
ERL Building
2528 Taft Avenue, Pasay City
(02) 833-2959
(02) 833-9450
(02) 585-9837
(02) 833-5738 FAX
NEWPORT CITY
G/F Star Cruises Building
Newport City, Andrews Avenue
Pasay City
(02) 556-8955
(02) 556-8956 TEL/FAX
ORTIGAS
21 San Miguel Avenue
Ortigas Center, Pasig City
(02) 633-6443
(02) 633-6445 TEL/FAX
RENAISSANCE TOWER
G/F Renaissance 1000
Meralco Avenue,
Ortigas Center, Pasig City
(02) 217-7210
(02) 584-8396
(02) 584-8397 TEL/FAX
(0917) 827-0461
SHAW BOULEVARD
131-133 Shaw Boulevard
Brgy. Oranbo, Pasig City
(02) 632-9817
(02) 585-1017
(02) 632-9813 FAX
(0917) 827-0558
SHAW-PASIG
Chipeco Building
Shaw Boulevard corner
Meralco Ave., Pasig City
(02) 631-3957
(02) 631-3955 FAX
TEKTITE
G/F West Tower
Phil. Stock Exchange Center
Exchange Road, Ortigas Center
Pasig City
(02) 636-3528 to 32
(02) 638-8746
(02) 636-3531 FAX
UNIONBANK PLAZA
UnionBank Plaza Bldg.
Meralco Ave. corner Onyx Road
Pasig City
(02) 634-7907
(02) 944-8041 to 42
(02) 944-8128 to 29
(02) 585-1019
(02) 944-8043 FAX
(02) 633-7929 FAX
(0917) 827-0559
PARAÑAQUE CITY
BACLARAN
2/F Baclaran Supermall
F.B. Harrison cor. Taft Ave. Ext.
Parañaque City
(02) 855-7748
(02) 855-7747 TEL/FAX
BF HOMES
55 President’s Avenue
BF Homes Subd.
Parañaque City
(02) 807-4483 to 85
(02) 585-1036
(02) 807-4891 FAX
(0917) 827-0465
BICUTAN
28 Doña Soledad Avenue
Better Living Subd.
Parañaque City
(02) 822-1517 to 19
(02) 822-1515
(02) 585-1036
(02) 822-1516 FAX
(0917) 827-0464
DR. A. SANTOS
G/F Liana’s Supermarket
Dr. A. Santos Avenue
corner A. Canaynay Ave.
Parañaque City
(02) 836-3674
(02) 836-3730 TEL/FAX
NAIA TERMINAL 1
G/F International Passenger
Terminal Bldg., NAIA Terminal 1
NAIA Complex, Parañaque City
(02) 585-8129
(0917) 827-0236
PARAÑAQUE
Quirino Avenue corner
V. Medina St., La Huerta
Parañaque City
(02) 826-7052
(02) 788-0969
(02) 829-9317 FAX
SUCAT
8200 Dr. A. Santos Ave.
Sucat, Parañaque City
(02) 820-2338 to 39
(02) 585-1003
(02) 820-4030 FAX
SUCAT-JAKA PLAZA
JAKA Plaza
Dr. A. Santos Avenue
Parañaque City
(02) 820-0089
(02) 829-9315 FAX
WEST SERVICE ROAD
Rodeo Building
Km. 18 West Service Road
South Luzon Expressway
Parañaque City
(02) 821-4513
(02) 821-4674
QUEZON CITY
ABS-CBN
West Wing, G/F ELJ
Communications Ctr.
ABS-CBN Broadcast Center
Sgt. EA Esguerra Avenue
corner Mother Ignacia St.
Quezon City
(02) 929-7264
(02) 929-1825
(02) 217-8286
ACROPOLIS
171 Bridgeview Bldg.
E. Rodriguez Jr. Ave.
Bagumbayan, Quezon City
(02) 637-3452
(02) 438-9332
(02) 637-3474 FAX
(0917) 827-0549
ARANETA AVENUE
Del Moral Building
341 G. Araneta Ave.
Quezon City
(02) 714-4345
(02) 715-3645
(02) 714-4416 FAX
AURORA BOULEVARD
677 Aurora Blvd.
(near Broadway Centrum)
New Manila, Quezon City
(02) 416-5329
(02) 725-1951
(02) 412-3484 TEL/FAX
AURORA - BALETE DRIVE
G/F Marsk Bldg., Aurora Blvd.
corner Balete Drive, Q. C.
(02) 727-4157
(02) 722-6327
(02) 585-8130
(02) 724-4356 TEL/FAX
BAESA
Dra. C. Pascual Bldg.
142 Quirino Highway
Baesa, Quezon City
(02) 362-0444
(02) 361-4459 FAX
63
BRICK AND MORTAR
BANAWE
Banawe St. corner
Quezon Ave., Q. C.
(02) 740-0424
(02) 743-4668
(02) 743-4671
(02) 743-4677
(02) 743-4680 FAX
(0917) 827-0291
C5-QC
184-B E. Rodriguez Jr. Avenue
Bagumbayan, Quezon City
(02) 421-0311 to 12
(02) 638-1689
(02) 421-0314 FAX
COMMONWEALTH AVENUE
12-13, Upper G/F Diliman
Commercial Center
Commonwealth Ave.
Diliman, Quezon City
(02) 431-5148
(02) 931-9691
(02) 951-0152 FAX
64
CONGRESSIONAL EXTENSION
Congressional Ave. near corner
Mindanao Ave., Gardenville
Brgy. Bahay Toro, Quezon City
(02) 455-8546
(02) 455-8561
(02) 426-4209 FAX
CUBAO
P. Tuazon St. corner
7th Ave., Cubao, Quezon City
(02) 912-1846
(02) 912-1822
(02) 911-1504 FAX
CUBAO-AURORA EAST
J & F Divino Bldg.
961 Aurora Blvd.
Cubao, Quezon City
(02) 912-0751
(02) 912-0754 TEL/FAX
CUBAO-RUSTAN’S
Rustan’s Superstore Bldg.
Araneta Center
Cubao, Quezon City
(02) 911-2368
(02) 995-0712
(02) 911-2677 FAX
DEL MONTE AVENUE
447 Del Monte Ave. corner
Biak na Bato St., Q. C.
(02) 330-0227 to 28
(02) 330-0232
(02) 330-0234 FAX
EASTWOOD CITY
G/F Unit 1880-1a Eastwood Bldg.
Eastwood Ave.
Eastwood Cyberpark
E.Rodriguez Jr. Avenue, (C-5)
Bagumbayan, Q. C.
(02) 584-3638
(02) 585-8128
(02) 584-3639 TEL/FAX
E. RODRIGUEZ
78-E E. Rodriguez Sr. Ave.
Quezon City
(02) 712-1331
(02) 711-4030 TEL/FAX
GOTESCO-COMMONWEALTH
Ever Gotesco Commonwealth
Don Antonio St. corner
Commonwealth Ave.
Quezon City
(02) 932-0944
(02) 585-1879
(02) 932-0942 TEL/FAX
(0917) 827-0451
KAMIAS
G/F TDS Building
72 Kamias Road, Q. C.
(02) 929-7665
(02) 929-7667
(02) 929-7909
(02) 217-3784
(02) 929-7807 FAX
KATIPUNAN
355 AGCOR Bldg.
Katipunan Ave.
Loyola Heights, Q. C.
(02) 426-1258
(02) 433-2694
(02) 926-8140
(02) 926-1768 FAX
MUÑOZ
Muñoz Market
EDSA, Quezon City
(02) 414-4767
(02) 373-4872 TEL/FAX
NOVALICHES-TALIPAPA
Leonora Building
557 Quirino Highway
Talipapa, Novaliches
Quezon City
(02) 454-7482
(02) 455-9169
(02) 939-7003 FAX
NOVALICHES-GULOD
854 Quirino Highway
Gulod, Novaliches, Q. C.
(02) 417-9463
(02) 935-1819
(02) 935-1820 FAX
RETIRO
Amoranto corner Mayon St.
Quezon City
(02) 742-2787
(02) 742-2788
(02) 742-2793 FAX
ROOSEVELT
244 Roosevelt Avenue
San Francisco del Monte
Quezon City
(02) 371-2024
(02) 448-6631
(02) 448-6633
(02) 371-2023
SOUTH TRIANGLE
Quezon Avenue corner
Scout Albano, Quezon City
(02) 425-1101 to 02
(02) 585-1883
(02) 425-1104 FAX
TIMOG
Cabrera Building II
64 Timog Avenue, Q. C.
(02) 413-6303
(02) 413-6304
(02) 926-8636 TEL/FAX
TOMAS MORATO
Tomas Morato near corner
Scout Lozano St., Q. C.
(02) 928-5801 to 02
(02) 585-1889
(02) 928-5811 FAX
WEST AVENUE
27-A West Avenue, Q. C.
(02) 372-7001
(02) 372-7003
(02) 372-7002 FAX
WEST AVENUE-BALER
No. 91 Barangay Bungad
West Avenue, Quezon City
(02) 372-2581 to 84
McKINLEY HILL
Units 1A& 1B Two World Square
Upper McKinley Road
McKinley Hill Drive
Fort Bonifacio, Taguig City
(02) 403-6522
(02) 403-6519
(02) 403-4794 TEL/FAX
(0917) 827-0366
DAGUPAN
Angel B. Fernandez
Dagupan City, Pangasinan
(075) 523-5575
(075) 523-6086
VALENZUELA
LAOAG
Rizal Street corner Guerrero St.
Laoag City, Ilocos Norte
(077) 770-3771 PLDT
(077) 771-5260 Digitel
MALINTA
G/F Mirjan Building
295 Maysan Road
Paso de Blas, Valenzuela City
(02) 277-2920 to 22
(02) 277-5525 FAX
MEYCAUAYAN
G/F Marian Bldg.
MacArthur Highway, Calvario
Meycauayan, Bulacan
(044) 840-2622
(044) 815-2346
VALENZUELA
Km. 12 MacArthur Highway
corner Serrano St.
Marulas, Valenzuela City
(02) 291-8486
(02) 443-7748 to 49
(02) 291-5866 FAX
OLONGAPO
87 Magsaysay Drive
Olongapo City
(047) 222-2118
(047) 222-2119 TEL/FAX
SAN JUAN
ANNAPOLIS
G/F Mercedes I Condominium
39 Annapolis St.
Greenhills, San Juan
(02) 722-0938
(02) 585-1005
(02) 744-6121 FAX
(0917) 827-0547
GREENHILLS
Ortigas Avenue near corner
Wilson St., Greenhills, San Juan
(02) 726-1391 & 93
(02) 723-3212
(02) 723-3363 FAX
TAGUIG
BONIFACIO GLOBAL CITY
G/F Mancor Corporate Center
32nd Street, Bonifacio
Global City, Taguig City
(02) 403-3352
(02) 403-4094
(02) 403-1768
2ND AVENUE BGC
G/F Blue Sapphire Building
2nd Avenue corner 30th Street
Bonifacio Global City
(02) 519-0324
(02) 519-9795
(02) 585-0011
5TH AVENUE – GLOBAL CITY
Unit 3, G/F One Global Place
5th Avenue corner 25th Street
Bonifacio Global City
Taguig City
(02) 836-4872 to 74
CENTRAL / NORTH LUZON
ANGELES
Prudentialife Building
Sto. Rosario St., San Jose
Angeles City, Pampanga
(045) 625-9858
(045) 888-3862
(045) 888-3781 FAX
BAGUIO
A10 Annex A Antipolo Bldg.
Upper Session Road,
Baguio City
(074) 443-5660
(074) 443-5658 FAX
BALIWAG
Benigno Aquino Avenue
Poblacion, Baliwag, Bulacan
(044) 766-2442
(044) 766-2847 TEL/FAX
CABANATUAN
P. Burgos St., Cabanatuan City
Nueva Ecija
(044) 463-0489
(044) 463-0490 FAX
PAMPANGA
G/F Mel-Vi Bldg.
Olongapo Gapan Road
Dolores, San Fernando
Pampanga City
(045) 961-6141
(045) 961-6300 TEL/FAX
SAN FERNANDO, LA UNION
G/F, Shania Tower
Quezon Avenue
San Fernando, La Union
(072) 607-0612
(072) 607-0613 TEL/FAX
SAN FERNANDO, PAMPANGA
3M Bldg., MacArthur
Highway, San Agustin
San Fernando, Pampanga
(045) 961-3723
(045) 961-5235 TEL/FAX
SANTIAGO
Maharlika Highway
Santiago City, Isabela
(078) 682-7323
(078) 682-4830 TEL/FAX
SUBIC
L19B Manila Avenue
corner Canal Street
Central Business District
Subic Bay Freeport Zone
(047) 252-9327
(047) 252-9326 TEL/FAX
TARLAC
Jaral Bldg., MacArthur Highway
Corner Juan Luna St., Tarlac City
(045) 982-6489
(045) 982-6485 TEL/FAX
TUGUEGARAO
#106 A.Bonifacio Street
Tuguegarao City, Cagayan
(078) 846-9179
(078) 844-3170 FAX
VIGAN
AR Lahoz Building
Jose Singson Street
Vigan, Ilocos Sur
(077) 722-2369
(077) 722-2046
SOUTHERN LUZON
BACOOR
Addio Bldg.
Aguinaldo Highway
Talaba, Bacoor, Cavite
(046) 417-1606
(046) 417-1705 TEL/FAX
BATANGAS CITY
GNG Realty Bldg.
P. Burgos near Cor.
Diego Silang St., Batangas City
(043) 723-0182
(043) 980-5281 & 84
(043) 723-0211
(043) 980-5280 TEL/FAX
BIÑAN-CARMONA
National Highway
Bgy. Maduya, Carmona, Cavite
(046) 430-3564
(046) 430-3573 TEL/FAX
CAINTA
G/F CRV Building
F. Felix Avenue corner
Karangalan Drive, Cainta, Rizal
(02) 646-0295
(02) 645-6670 TEL/FAX
CALAMBA-PARIAN
G/F Andenson Bldg.
Bgy. Parian, Calamba, Laguna
(049) 545-7421 to 22
(049) 545-9523
(049) 545-6673 FAX
CALAMBA
Marcelita Building
National Highway
Barangay Real
Calamba, Laguna
(049) 545-2162
(049) 545-2614
DASMARIÑAS-CAVITE
Aguinaldo Highway
corner Mangubat Avenue
Dasmariñas, Cavite
(046) 432-1718
(046) 432-1730 TEL/FAX
IMUS-CAVITE
G/F Melta Bldg.
Aguinaldo Highway
Cor. Sampaguita Village
Imus, Cavite
(046) 471-7770
(046) 970-6975
LEGASPI
Sia Ko Pio Building
Rizal St., Legaspi City
(052) 820-0598
(052) 480-6059 FAX
LIPA
B. Morada Avenue
Lipa City, Batangas
(043) 756-4370
(043) 312-2622
(043) 756-3822 FAX
LUCENA
Prestige Building
Quezon Avenue corner
Evangelista St., Lucena City
(042) 710-6538
(042) 660-4410
NAGA
Nutrade Building,
Caceres Street, Naga City
(054) 811-2184
(054) 473-7885
PUERTO PRINCESA
J.P. Rizal Avenue
Brgy. Maningning
Puerto Princesa City, Palawan
(048) 434-2007
(048) 434-2009
SAN PEDRO
National Highway
Barangay Landayan
San Pedro, Laguna
(02) 868-8067
(02) 868-8085 to 86
(02) 868-8133
STA. ROSA
Rizal Boulevard corner
Zavalla St.
Barangay Malusak
Sta. Rosa, Laguna
(049) 534-2548
(049) 534-1524
CEBU BUSINESS PARK
G/F Insular Life
Cebu Business Centre
Mindanao Ave. corner
Biliran Street
Cebu Business Park, Cebu City
(032) 266-1166
(032) 417-1911
(032) 417-1632 TEL/FAX
CEBU-COLON
Gullas Building
Colon St., Cebu City
(032) 416-8770
(032) 254-4856
CEBU-FUENTE
G/F Rajah Park Hotel
Fuente Osmeña Blvd.
Cebu City
(032) 412-5133
(032) 253-3865 TEL/FAX
CEBU NORTH ROAD
G/F Khuz’ns Bldg.
North Highway
Estancia, Mandaue City
(032) 343-7501 & 05
(032) 420-5802
(032) 343-7500 TEL/FAX
DAVAO-RIZAL
G/F & 2/F Quibod Commercial
Complex, 145 Rizal Street
Davao City
(082) 221-6489
(082) 225-3004
(082) 222-3414
ILOILO-GENERAL LUNA
Gen. Luna Street
Brgy. Villa Anita Village
Iloilo City
(033) 336-1630 to 33
(033) 509-0147
(033) 336-1630 TEL/FAX
CEBU-PLARIDEL
104 Plaridel Street
Barangay Sto. Niño
Cebu City
(032) 412-3507
(032) 255-0083 to 84 TEL/FAX
DAVAO-UNIVERSITY MALL
City Triangle Building
C.M. Recto St. corner Roxas St.
Davao City
(082) 222-2508
TACLOBAN
Josmar Building
M.H. del Pilar St. corner
Zamora Street, Tacloban City
(053) 321-2623
(053) 523-8571
(053) 321-2295 TEL/FAX
CEBU-SM
L/GF SM City Cebu
North Reclamation Area
Cebu City
(032) 412-8600
(032) 232-0680 TEL/FAX
METRO DAVAO
CEBU-LAPU-LAPU
Lot 2, Block 1, Phase 1
MEPZ II, Basak
Lapu-Lapu City, Cebu
(032) 495-9364
(032) 340-0705 TEL/FAX
DAVAO-DUTERTE
Duterte St. corner Pelayo St.
Davao City
(082) 221-3235
(082) 222-2512
LAPU-LAPU NATIONAL
HIGHWAY
Quezon National Highway
Pusok, Lapu-Lapu City, Cebu
(032) 494-0172
(032) 340-5064
DAVAO-MAGSAYSAY
R. Magsaysay Avenue corner
E. Jacinto St., Davao City
(082) 221-6426
(082) 222-3928
(082) 221-6726 TEL/FAX
CEBU-MANDAUE
Kentredder Bldg.
AC Cortes Avenue
Mandaue City, Cebu
(032) 420-6288
(032) 345-2703
(032) 346-2553 TEL/FAX
DAVAO-MONTEVERDE
G/F Mintrade Bldg.
Monteverde Ave. Corner Sales
St. Davao City
(082) 222-3411 to 13
(082) 222-3411 FAX
DAVAO-VICTORIA PLAZA
Victoria Plaza Mall
JP Laurel Avenue.
Bajada, Davao City
(082) 221-4776
VISAYAS
BACOLOD
G/F, Philamlife Bldg.
Lacson corner Galo Sts.
Bacolod City
(034) 434-6155
(034) 434-5510
(034) 709-6182
METRO CEBU
CEBU-ASIATOWN IT PARK
GF101 TGU Tower, Salinas Drive
Asiatown IT Park, Lahug
Cebu City
(032) 479-9980
(032) 236-7897
(032) 479-9981 TEL/FAX
CEBU-BANILAD
Gaisano Country Mall
Talamban Road
Banilad, Cebu City
(032) 416-2883
(032) 231-2734 FAX
CEBU-BORROMEO
Plaza Borromeo
Borromeo St., Cebu City
(032) 253-0446
(032) 412-3401
CEBU-MAXILOM
Gen. Maxilom Ave.
Cebu City
(032) 255-6225
(032) 255-6224 FAX
DAVAO-QUIRINO
Quirino Ave. corner
San Pedro St. Davao City
(082) 225-1701 to 02 TEL/FAX
BACOLOD-ARANETA
1st Provincial Finance
Corp. Bldg., Araneta St. corner
Rosario St. Bacolod City
(034) 435-0664
(034) 435-0665
(034) 709-0253 TEL/FAX
DUMAGUETE
UnionBank Building
Corner Real & San Juan Sts
Dumaguete, Negros Oriental
(035) 422-5038
(035) 422-5039
(035) 422-4036 TEL/FAX
ILOILO-IZNART
Villanueva Building
Iznart St., Iloilo City
(033) 500-5024
(033) 335-0464
TAGBILARAN
JS Torralba Street
Tagbilaran City
(038) 501-9909
(038) 412-3775
MINDANAO
BUTUAN
Ground Floor CAP Bldg.
J. Rosales Ave. corner
JC Aquino Avenue
Butuan City
(085) 342-8981
(085) 815-6191
CAGAYAN DE ORO-DON
APOLINAR
G/F Philamlife Bldg.
Don Apolinar Velez St.
Cagayan de Oro City
(088) 856-6101 to 04
(088) 856-6106 FAX
CAGAYAN DE ORO-LAPASAN
Lapasan National Highway
Cagayan de Oro City
(088) 310-7906
(088) 310-7907
GENERAL SANTOS-SOUTH
G/F Laiz Bldg., 127 Pioneer Ave.
General Santos City
(083) 553-6026
(083) 301-1168
(083) 301-0033
GENERAL SANTOS-PIONEER
NORTH
UnionBank Building
Pioneer Avenue
Gen. Santos City
(083) 552-5076
(083) 553-2019
(083) 301-9410
ILIGAN
#019 Poblacion
Quezon Avenue
9200 Iligan City
(063) 221-5395
(063) 221-3008
OZAMIZ CITY
G/F Insular Life Building
Don Anselmo Ave. corner
Jose Abad Santos St.
Barangay Carmen, Ozamiz City
(088) 319-0283 to 84
(088) 564-2388
PAGADIAN
Sabado Building
Rizal Avenue, Pagadian City
(062) 214-1841
(062) 214-1332 TEL/FAX
ZAMBOANGA-PILAR
G/F Orion Cineplex Building
Pilar Street, Zamboanga City
(062) 992-1787
(062) 992-4006 TEL/FAX
ZAMBOANGA CITY
G/F ZAEC Bldg.
Mayor Jaldon
Cor. Gov. Alvarez Street
Zamboanga City
(062) 991-4899
(062) 991-5499
(062) 991-9799
(062) 991-4499 TEL/FAX
65
CORPORATE GOVERNANCE REPORT
The corporate governance of UnionBank of the Philippines is founded on a culture of fairness, transparency
and accountability, and demonstrated by consistent ethical business conduct. The responsibility for good
corporate governance is owned by all members of the organization, emanating from the Board and
cascading to all levels of the Bank’s Officers and Staff.
The Bank has a Nomination Committee that pre-screens the qualifications of, and prepares a final list
of all candidates for its Board of Directors and key officers. Screening policies and parameters are set in
place which enable the Committee to effectively review the qualifications of the nominees for regular and
independent directors.
The Bank’s enhanced corporate governance roadmap seeks to continually raise the bar by guiding the Bank
through three stages of governance internalization and practice: Compliance, Competence, and Culture with
the ultimate goal of steering the Bank towards serving the interest of its stockholders and stakeholders.
The members of the Board comply with the fit and proper rule of the BSP. Every election, Board
members attest that they have all the qualifications required of a director and do not possess any of the
disqualifications specified in the BSP MORB. They are apprised of their general and specific duties and
responsibilities as directors prescribed by the MORB and are required to certify that they fully understand
the same. All members of the Board have attended the Corporate Governance Orientation Program at BSPaccredited institutions in compliance with the MORB.
The following discussion comprises the Bank’s governance framework and systems.
I.
Board Governance
The Bank’s Board of Directors drives adherence to strict corporate governance standards. It keeps the
Bank focused on its objective of continually creating value for and enhancing the long term interests of its
stakeholders. The Board oversees the Bank’s business and ensures that policies and programs are in place
to achieve and continually improve operational and financial soundness.
66
The Board consists of fifteen (15) members who are each elected by stockholders entitled to vote at the
Bank’s annual meeting. The qualifications and disqualifications of directors are set in the Manual on
Corporate Governance of the Bank in accordance with the regulations of the Bangko Sentral ng Pilipinas
(BSP) and the Securities and Exchange Commission (SEC). The Board members hold office for one (1) year
or until their successors are elected and qualified in accordance with the Bank’s By-Laws.
The Board includes two Independent Directors as required by the BSP and the SEC. An independent
director is defined as a person holding no interests or relationships with a bank that may hinder his
independence from the bank or management or will interfere with the exercise of independent judgment
in carrying out his responsibilities as a director. He should comply with all the qualifications required of
an independent director and should not possess any of the disqualifications therefore as provided in the
Securities Regulation Code (SRC) and the Manual of Regulations for Banks (MORB) of the BSP; and has not
withheld nor suppressed any information material to his qualification or disqualification as an independent
director. They are nominated and elected in accordance with the rules of the BSP and the SEC. At present,
Mr. Armand Braun and retired Supreme Court Justice Cancio Garcia sit as independent directors.
The Board is composed of members of proven competence and integrity. Its structure and composition
enables the Board in fulfilling its duties and responsibilities which are provided in the Bank’s By-Laws and
Manual on Corporate Governance. They have sufficient knowledge and expertise to enable them to exercise
effective governance and oversight. Through the Board members’ distinct yet complementing competencies
and experiences, they ensure a high standard of corporate governance. Profiles of the members of the
Board are provided in the Bank’s Annual Report (SEC Form 17-A) and Definitive Information Statement
(SEC Form 20- IS).
•
Board Performance
The Board members evaluate the Board’s effectiveness in carrying out its roles and responsibilities by
accomplishing self-assessment forms endorsed by the Corporate Governance Committee and adopted
by the Board. The Board self-assessment is conducted annually and the results are discussed by the
Corporate Governance Committee prior to its submission and communication to the Board.
Board meetings are held every month or as necessary, and are regularly attended by its members.
Discussions and deliberations during Board meetings are open and independent views are given due
respect and consideration. The Bank recognizes Board members who have religiously attended Board
meetings.
The Board held thirteen (13) meetings from March 2010 to February 2011. Provided below is the record
of attendance of the Bank’s directors for the period cited, viz:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
*
**
***
****
*****
•
MEMBERS
(March 2010 to February 2011)
Mr. Justo A. Ortiz (Chairman)
Mr. Jon Ramon M. Aboitiz (Vice Chairman)
Mr. Vicente R. Ayllon (Vice Chairman)
Mr. Victor B. Valdepeñas (President)
Mr. Erramon I. Aboitiz
Mr. Iker Markel M. Aboitiz
Mr. Stephen G. Paradies
Mr. Juan Antonio E. Bernad
Atty. Edilberto B. Bravo
Mr. Mayo Jose B. Ongsingco
Mr. Armand F. Braun, Jr.
Atty. Cancio C. Garcia
Mr. Thelmo Y. Cunanan*
Mr. Romulo L. Neri**
Mr. Sergio Antonio E. Apostol***
Mr. Emilio S. De Quiros, Jr.****
Ms. Eliza Bettina R. Antonino*****
Their composition and functions are summarized below.
Executive Committee
(Chairman: Jon Ramon Aboitiz, Vice Chairman: Edilberto Bravo, Members: Justo Ortiz,
Erramon Aboitiz, Victor Valdepeñas1, Thelmo Cunanan2, Romulo Neri,3 Armand Braun, Jr.
& Emilio De Quiros, Jr.4)
%
100%
84.62%
53.85%
92.31%
61.54%
69.23%
92.31%
92.31%
100%
84.62%
100%
100%
87.50%
100%
54.55%
80%
100%
The Executive Committee is composed of seven (7) members of the Board. It acts and exercises
such functions and powers which are reserved for the Board during intervals between Board
meetings, except the power to initiate reversals of, or departure from fundamental policies,
procedures and guidelines prescribed by the Board itself, and subject to such restrictions as
the Board may determine. All matters passed and acted upon by the Executive Committee are
reported to the Board of Directors and subject to revision and alterations by the Board provided
that no rights or third person are affected thereby. The Committee held 34 meetings from March
2010 to February 2011.
Risk Management Committee
(Chairman: Jon Ramon Aboitiz, Vice Chairman: Mayo Jose Ongsingco, Members: Erramon
Aboitiz, Justo Ortiz, Victor Valdepeñas5, Armand Braun, Jr., Emilio De Quiros, Jr.,6 Thelmo
Cunanan7 & Romulo Neri8)
The Risk Management Committee consists of seven (7) members of the Board of Directors who
possess varied range of knowledge and expertise concerning the Bank’s risk exposures, its
management and/or avoidance. The Committee develops appropriate strategies for preventing
the occurrence of risk events and minimizing losses when these do happen. It oversees the Bank’s
risk management system to ensure that it remains effective, authority limits are observed, and
immediate corrective actions are taken whenever limits are breached or risk events occur.
Tendered his resignation on September 1, 2010 to be
effective upon Board election of his replacement. He
passed away last January 17, 2011.
Resigned on July 9, 2010 and was replaced by Director
Emilio De Quiros, Jr.
Resigned on December 17, 2010 and was replaced by
Director Eliza Bettina Antonino.
Elected on October 1, 2010 vice Director Neri.
Elected on December 17, 2010, vice Director Apostol.
The Committee also develops, and implements, a written plan defining the strategies for
managing and controlling the major risks. The Committee held 12 meetings from March 2010 to
February 2011.
Board Committees
To assist the Board in competently acting upon its responsibilities, it established nine committees, namely,
the Executive Committee, the Risk Management Committee, the Market Risk Committee, the Operations
Risk Management Committee, the Audit Committee, the Trust Committee, the Corporate Governance
Committee, the Nominations Sub-Committee, and the Compensation & Remunerations Sub-Committee.
1
2
3
4
5
6
7
8
Alternate member.
Tendered his resignation on September 1, 2010 to be effective upon Board election of his replacement. He passed
away last January 17, 2011.
Resigned on July 9, 2010 and was replaced by Director Emilio De Quiros, Jr.
Elected on October 1, 2010, vice Director Neri.
Supra, note 1.
Supra, note 4.
Supra, note 2.
Supra, note 3.
67
CORPORATE GOVERNANCE REPORT
Market Risk Committee
(Chairman: Erramon Aboitiz, Members: Justo Ortiz, Victor Valdepeñas, Mayo Jose
Ongsingco & Thelmo Cunanan)
Audit Committee
(Chairman: Armand Braun, Jr., Vice Chairman: Stephen Paradies, Members: Mayo Jose
Ongsingco, Cancio Garcia, Sergio Antonio Apostol11 & Eliza Bettina Antonino12)
The Market Risk Committee is composed of the Chairman of the Board of Directors, the President
and three (3) other members of the Board. The Committee sets policies and standards for market
risk identification and analysis measurement, monitoring and control. The Committee’s specific
duties include, among others, management and reporting of market risk; ensuring that the
market risk management process satisfies corporate policy; review of the Treasury Portfolio
(including contingent accounts) on a monthly or regular basis and recommendation of valuation
reserves, as necessary; review and endorsement of Treasury Risk Limits for Board approval;
endorsement of Treasury-Related Product Programs and Manuals for approval of the Board of
Directors; approval of models and systems used to calculate market risk; and promotion of
continuous development of market risk programs and infrastructure.
The Audit Committee is composed of five (5) members who are experts in accounting, auditing,
or related financial management matters. The Committee members’ skills, qualifications, and
experience are appropriate for them to perform their duties as laid down by the Board. Two of
these five members are independent directors, including the Chairman.
The Committee serves as principal agent of the Board in ensuring the independence of the Bank’s
external auditors and the internal audit function, the integrity of management, and the adequacy
of disclosures and reporting to stockholders. It also oversees the Bank’s financial reporting
process on behalf of the Board. It assists the Board in fulfilling its fiduciary responsibilities
as to accounting policies, reporting practices and the sufficiency of auditing relative thereto,
and regulatory compliance. The Committee is empowered to independently review the integrity
of the Bank’s financial reporting and oversee the independence of the external auditors. The
Committee held 16 meetings from March 2010 to February 2011.
Operations Risk Management Committee
(Chairman: Stephen Paradies, Members: Mayo Jose Ongsingco & Sergio Antonio Apostol,
Teodoro Panganiban,9 Herminio Pugeda10)
The Internal Audit Division, which reports directly to the Audit Committee, provides independent
and objective assurance and advisory services to the Bank. The activities of the Internal Audit
Division are further discussed in the section on Governance Processes under the Audit System.
The Operations Risk Management Committee is composed of three (3) members of the Board
and two members from Senior Management. The Committee covers, among others, (1) the
adequacy of the Bank’s polices, procedures, organization and resources for preventing, or
limiting unexpected loss due to deficiencies in information systems; business, operational and
management processes; employees skills and supervision, equipment and internal controls;
(2) periodic or special risk assessments conducted in various businesses and operating units
of the Bank to proactively uncover operational risks that can result to actual loss or damage;
(3) results of internal audits, BSP examinations and investigation of administrative cases that
highlight trends indicative of present or emerging exposures to specific operational risks; (4)
risk assessment of major information systems to be implemented in the Bank; (5) regulatory
compliance issues, whether currently existing, or anticipated to arise as a result of new laws or
regulations; and (6) business continuity strategies, plans and procedures. The Committee held
four meetings from March 2010 to February 2011.
68
External Auditor - Punongbayan & Araullo (P&A)
Profile
Punonbayan and Araullo (P & A) was founded in 1988 by two prominent leaders in the
accounting profession in the Philippines, Benjamin R. Punongbayan and Jose G. Araullo.
It grew from a personnel complement of only seven people in 1988, to over six hundred
people today.
P & A is a member of Grant Thornton International, one of the world’s leading organizations
of independently owned and managed accounting and consulting firms. It is also an
accredited auditing firm by the SEC and BSP.
P & A’s offices are located at the 20th floor, Tower I, The Enterprise Center, 6766 Ayala
Avenue, 1200 Makati City, Metro Manila.
9
10
Member of the Bank’s Senior Management.
Member of the Bank’s Senior Management.
11
12
Resigned on December 17, 2010.
Elected on December 17, 2010, vice Director Apostol.
Services to UnionBank
Corporate Governance Committee
(Chairman: Jon Ramon Aboitiz, Members: Justo Ortiz, Erramon Aboitiz, Mayo Jose
Ongsingco, Romulo Neri16, Emilio De Quiros, Jr.,17 Armand Braun, Jr. & Cancio Garcia)
P & A’s services consist of the audits of the consolidated financial statements of the Group
and the individual financial statements of the Bank’s subsidiaries as of and for the
year ending December 31, 2010, to enable them to express an opinion on the fairness of
presentation of the financial position, financial performance and cash flows. It is likewise
engaged to audit the financial statements of the foreign currency deposit unit (FCDU) of
the Bank, the combined assets and accountabilities of the trust and managed funds, and
the individual unit investment trust funds (UITF) managed and operated by the Trust
and Investment Services Group of the Bank as of and for the year ending December 31,
2010. P&A audits the financial statements prepared in accordance with Philippine Financial
Reporting Standards (PFRS) except for the Group financial statements which are prepared
in accordance with Financial Reporting Standards in the Philippines (FRSP) for banks.
FRSP for banks and Philippine Financial Reporting Standards (PFRS) are the same, except
for the exemption from the tainting provision of Philippine Accounting Standard (PAS)
39, Financial Instruments: Recognition and Measurement, as allowed by BSP and the SEC.
The Corporate Governance Committee is primarily responsible for helping the Board fulfill
its corporate governance responsibilities. It advocates and assists the Board in adopting and
implementing sound principles and practices of good corporate governance.
The Committee recommends corporate governance policies to the Board based on the regulations
of the BSP, SEC, PSE, as well as those which are internationally recognized as industry best
practices. It serves as the primary resource for the study and evaluation of the Board’s and its
Committees’ structure, policies and practices with the objective of raising the bar for the Bank’s
corporate governance.
The Committee’s specific duties include, among others, making recommendations to the Board
regarding continuing education of directors and overseeing the periodic performance evaluation
of the Board, its Committees and senior management.
There were no changes in or disagreements with the Bank’s external auditors, P&A, on
accounting principles or practices, financial statement disclosures or auditing scope or
procedure for the two (2) most recent years ended December 31, 2009 and 2008.
The Committee consists of seven (7) members of the Board, two of whom are Independent
Directors and one belonging to the Bank’s senior management. It held six meetings from March
2010 to February 2011. During these meetings, the items discussed were, among others: (1) review
and update of the Manual on Corporate Governance; (2) PSE’s Minimum Public Ownership Rule;
(3) self-assessment forms for the Board committees; (4) revision of the Compliance Manual and
Program; (5) results of the 2009 Corporate Governance Scorecards for Publicly Listed Companies
and the Corporate Governance Guidelines of PSE.
Trust Committee
(Chairman: Juan Antonio Bernad, Vice Chairman: Romulo Neri13, Members: Victor
Valdepeñas, Edilberto Bravo & Emilio De Quiros, Jr.,14 and Michael Jack B. Garcia15)
The Committee has two sub-committees, namely, the Nominations Sub-Committee and the
Compensation and Remuneration Sub-Committee.
The Trust Committee is composed of five (5) members: three (3) of whom are members of the
Board, the President, and the Trust Officer. No member of the Audit Committee sits concurrently
as a member of the Trust Committee in compliance with Sec. X 406.1 of the MORB.
Nomination Sub-Committee
(Chairman: Jon Ramon Aboitiz, Members: Justo Ortiz, Erramon Aboitiz, Mayo Jose
Ongsingco, Sergio Apostol & Armand Braun, Jr.)
The Trust Committee acts within the sphere of authority as may be provided in the Bank’s ByLaws, and/or as may be delegated by the Board such as, but not limited to: the acceptance and
closing of trust and other fiduciary accounts; the initial review of assets placed under the trustee’s
fiduciary custody; the investment, reinvestment, and disposition of funds or properties; and the
review of trust and other fiduciary accounts at least once every twelve (12) months to determine
the advisability of retaining or disposing of the trust or fiduciary assets, and/or whether the
account is being managed in accordance with the instrument creating the trust or other fiduciary
relationship. The Committee held 12 meetings from March 2010 to February 2011.
13
14
15
Supra, notes 3 & 8.
Supra, notes 4 & 6.
Trust Officer of the Bank.
The Nominations Sub-Committee is comprised of six voting members of the Board, one of whom
is an Independent Director, and one non-voting member in the person of the Human Resources
Director. The Nominations Committee is responsible for reviewing the qualifications of and
screening candidates for the Board and key officers of the Bank. It oversees the implementation
of programs for identifying, retaining and developing critical officers and the succession plan
for various units in the organization.
16
17
Supra, notes 3, 6, & 13.
Supra, notes 4, 6, & 14.
69
CORPORATE GOVERNANCE REPORT
Compensation and Remuneration Committee
(Chairman: Jon Ramon Aboitiz, Vice Chairman: Vicente Ayllon, Members: Justo Ortiz, Erramon Aboitiz &, Cancio Garcia)
The Compensation and Remuneration Sub-Committee is composed of five members of the Board, one of whom is an Independent Director. It is responsible for overseeing implementation of the programs for
salaries and benefits of Directors and senior management. It monitors adequacy, effectiveness and consistency of compensation program vis-à-vis corporate philosophy and strategy.
BOARD COMMITTEE MEETINGS ATTENDANCE
(March 2010 to February 2011)
Executive
Audit
Corporate
Governance
Compensation &
Remuneration
Nomination
Risk Management
Market Risk
83.33%
Justo A. Ortiz
88.24%
100%
100%
100%
100%
Jon Ramon M. Aboitiz
79.41%
100%
100%
100%
75%
91.67%
100%
100%
66.67%
83.33%
Trust
Operations Risk
Management
100%
Vicente R. Ayllon
Victor B. Valdepeñas
94.12%
Erramon I. Aboitiz
79.41%
83.33%
100%
91.67%
Iker Markel M. Aboitiz
100%
Stephen G. Paradies
70
100%
83.33%
Juan Antonio E. Bernad
Edilberto B. Bravo
64.71%
81.25%
Mayo Jose B. Ongsingco
Thelmo Y. Cunanan*
Romulo L. Neri**
90.91%
Eliza Bettina R. Antonino*****
*
**
***
****
*****
100%
66.67%
91.18%
91.67%
85.71%
50%
100%
50%
100%
100%
93.75%
83.33%
64.29%
83.33%
87.71%
100%
46.15%
Cancio C. Garcia
Emilio S. De Quiros****
100%
80%
Sergio Antonio F. Apostol***
Armand F. Braun, Jr.
75%
100%
Tendered his resignation on September 1, 2010 to be effective upon Board election of his replacement.
He passed away last January 17, 2011.
Resigned on July 9, 2010 and was replaced by Director Emilio De Quiros, Jr.
Resigned on December 17, 2010 and was replaced by Director Eliza Bettina Antonino.
Elected on October 1, 2010 vice Director Neri.
Elected on December 17, 2010, vice Director Apostol.
91.67%
75%
33.33%
50%
80%
-
60%
-
•
Corporate Secretary
Corporate Governance in 2010. Policies on conflict of interest, related-party transactions
and alternative dispute resolution were among the governance policies newly adopted or
strengthened.
The Bank’s Corporate Secretary plays a pivotal role in assisting the Board in the performance of
its duties. In all the activities of the Board, the Corporate Secretary ensures that Board policies and
procedures are observed. The Board has separate and independent access to the Corporate Secretary
who, among others, oversees the adequate flow of information to the Board prior to and during
meetings, and serves as an adviser to the Directors on their responsibilities and obligations.
•
ƒ
As part of its continuing efforts to uphold equitable treatment of its shareholders and other
stakeholders, the Bank strengthened its policies on conflict of interest and related party
transactions which have long been part of the Bank’s Code of Conduct. The Revised CG
Manual provides that a conflict of interest exists when the personal, business or other
related interest of a director, officer or employee adversely interferes in any way, or could
reasonably be perceived to adversely interfere, with the interest of the Bank. It also requires
a directors, officers or employees to immediately disclose any involvement in material
conflict of interest and to refrain from participating in any decision-making relating to the
transaction.
The Management
The Management is the body given the authority by the Board to implement the policies it has laid
down in the conduct of the business of the Bank. It consists of a core group of individuals who are
responsible for overseeing the day-to-day management of the Bank, serving as a link between the
Board and staff. These individuals have the necessary skills to manage the Bank’s business under
their supervision as well as the appropriate control over key individuals in these areas.
ƒ
The Management is primarily accountable to the Board for the operations of the Bank. It provides the
members of the Board with accurate and timely information that would enable the Board to comply
with its responsibilities.
II.
Related Party Transactions
It is the policy of the Bank that all related party transactions are entered into at arm’s
length. These transactions should be made on substantially the same terms and conditions
as transactions with other individuals and businesses of comparable risks, following the
process set forth in the Bank’s Purchasing Guidelines. The Bank has in place Procedural
Guidelines for Monitoring Related Party Transactions approved by the Board of Directors.
GOVERNANCE POLICIES AND MECHANISMS
The Bank’s governance policies and mechanisms operationalize its culture of fairness, accountability
and transparency and provide a robust guide for appropriate action. These policies and mechanisms
are found in various documents and are embedded in the different programs and processes involved
in the day-to-day operations of the Bank. They are continually updated as the applicable laws, rules
and regulations evolve, and as new best practices in corporate governance come to light.
ƒ
Policy on Conflict of Interest
ƒ
Alternative Dispute Resolution System
It is the Bank’s policy to continue building harmonious relationship with its stockholders
and other parties with whom it may have obligations or may contract. In case of dispute,
the Bank subscribes to the view that an important determinant of the degree to which
shareholder rights protected is the presence of effective methods to obtain redress for
grievances at a reasonable cost and without excessive delay.18 It thus prefers to apply
appropriate alternative dispute resolution systems for early settlement of conflicts with its
stockholders and other parties, as expressed in its CG Revised Manual.
Manual on Corporate Governance
The Bank’s Corporate Governance Manual (CG Manual) embodies leading principles and
practices on good corporate governance. It lays down the details of the Bank’s governance
and compliance system, organizational and procedural controls, an independent audit
mechanism as well as the functions of the External Auditor and of the Compliance Officer.
It provides for policies on disclosure and transparency and the compliance system of
the Bank. Most importantly, the CG Manual underscores its recognition and continuous
promotion of the rights of its stockholders.
ƒ
Compliance Manual and Program
The Bank has in place a Board-approved Compliance Program that adheres to rules and
regulations issued by the BSP, SEC, PSE, Philippine Deposit Insurance Corporation (PDIC),
Anti-Money Laundering Council (AMLC), and other regulatory agencies. The Compliance and
The Board, in compliance with the SEC’s Revised Code of Corporate Governance and upon
endorsement of the Corporate Governance Committee approved the Revised Manual on
18
Organization for Economic Co-operation and Development (OECD) Principles of Corporate Governance, 2004.
71
CORPORATE GOVERNANCE REPORT
Corporate Governance Office, the Office of the Corporate Secretary, and the Bank’s various
units, are responsible for ensuring compliance with the Program and with these regulatory
requirements. In December 2010, the Board approved the Bank’s revised Compliance
Program, which is designed to ensure adherence not only to all laws and regulations but
also to the Bank’s internal policies, including its Code of Conduct, as well as to industryaccepted standards and corporate governance best practices and principles.
ƒ
IAD has its own charter, approved by the Board, which describes its mission, independence
and objectivity, scope and responsibilities, authority, and standards of its functions.
The Bank engages the services of an independent external auditor, who examines the
financial statements of the Bank in accordance with generally accepted auditing standards
and expresses its opinion on the fairness of its presentation upon completion of such
examination.
Anti-Money Laundering Efforts
ƒ
The Bank has its own programs and processes to support anti-money laundering efforts of
the BSP, AMLC, and other regulatory agencies of the government.
Its Anti-Money Laundering Manual, updated in December 2010, provides easy access to
laws and regulations pertinent to anti-money laundering, guidelines on know-yourcustomer (KYC) requirements, anti-money laundering training programs, and other relevant
information. The Bank has formed the Anti-Money Laundering Committee that is tasked to
review, evaluate, and validate the suspicious nature of a transaction prior to the submission
of a suspicious transaction report to the AMLC.
72
ƒ
Disclosure and Transparency
The Bank considers timely and fair disclosure of material information relating to the Bank’s
operations as crucial for the protection of shareholders’ rights. It strictly complies with
rules and regulations on disclosure and transparency and consistently submits periodic
and other reports required under applicable laws and regulations. The Bank submits
current reports to the SEC and the PSE, as necessary, to make full, fair, accurate and timely
disclosures to the public on material facts or events that may reasonably be expected to
affect investors’ decision in relation to the Bank’s securities.
ƒ
Audit System
The Bank has an Internal Audit Division (IAD) that is entirely independent from all the other
organizational units of the Bank as well as from the personnel and units subjected to audit.
IAD reports to the Audit Committee and performs an independent, objective assurance and
consulting function designed to add value and improve the Bank’s operations. It brings a
systematic, disciplined approach to evaluating and improving the effectiveness of the Bank’s
risk management, control and governance processes, provide reasonable assurance to the
Board, Senior Management, and the stockholders that these are appropriate, operational
and effective. It also conducts special administrative investigations when required to do so
pursuant to the Bank’s Code of Conduct.
Fair Securities Dealing
To continually uphold transparency and integrity in the trading in its securities, the Bank
has adopted a Trading Guidelines and Blackout Policy which aims to apprise and ensure
compliance by all Covered Persons with their obligations under the SRC relating to the trading
or dealing of the Bank’s securities. Covered Persons are directors, officers and employees
of the Bank who are made aware of undisclosed material non-public information, including
their immediate families living in the same household.
Whenever a trading blackout period is imposed, Covered Persons are not allowed to deal
or transact in the Bank’s securities, which shall include not only the ones which they
directly own, but also those of which they are the beneficial owners. The Compliance and
Corporate Governance Office, in coordination with the Corporate Secretary, determines the
need for and issues such notice in accordance with the PSE Disclosure Rules.
ƒ
Governance Evaluation System
The Bank utilizes various measures to gauge its state of corporate governance. The conduct
of self-assessment by the Board and its Committees as well as the external ratings and
surveys of regulatory agencies and private organizations form part of the Bank’s evaluation
system to determine its level of corporate governance. Among the means by which the
Bank publicly projects and obtains independent feedback on the state of its corporate
governance are the following.
First, the Bank complied with the requirement of the SEC on one-time submission of its
Corporate Governance Self Rating Form in July 2003.
Second, it participates annually in the Corporate
Institute of Corporate Directors both for publicly
as required by the SEC and the BSP, respectively.
Survey for PLCs evaluates a company’s corporate
transparency (25% weight), board responsibilities
Governance Scorecard Survey of the
listed companies (PLCs) and banks,
The Corporate Governance Scorecard
governance based on disclosure and
(25%), rights of shareholders (20%),
III.
equitable treatment of shareholders (20%) and role of stakeholders (10%). The Bank
has been consistently recognized as a Silver Awardee in both 2009 and 2010 Corporate
Governance Scorecard surveys for PLCs. A Silver Award is given to companies who
obtain an overall rating of ninety to ninety-four percent (90-94%) in the Scorecard.
The Bank’s rating in 2010 was actually an improvement over that of the previous year,
having scored 90.3% in 2009 and 91.3% in 2010.
The Bank believes that good corporate governance not only means compliance with mandated
rules of conduct, but adherence to the spirit of those rules. That spirit is expressed in the Bank’s
ethical standards.
The Bank has a Code of Conduct (Code) which, in its section on Ethical Standards, provides clear
guidelines regarding acceptable conduct towards the Bank and its principal stakeholders.
In 2009 ,the Bank was also publicly recognized by Finance Asia which cited it as the
only company which landed in the top 10 companies in the Philippines for three (3)
categories, namely, one of the ten (10) companies with “Best Corporate Governance,”
“Best Corporate Social Responsibility,” and “Most Committed to a Strong Dividend
Policy.”
Every employee undergoes training on the Code, and certifies in writing each year that he has
read, understood and complied with the Code. He also declares in writing any circumstance
affected with conflict of interest that he has been involved in during the period. All new
employees undergo training on the Code at the start of their employment.
Thirdly, the Bank accomplished and submitted its Corporate Governance Compliance
Report as required by the PSE. The Bank is 97% compliant with the corporate governance
practices and recommendations of the PSE.
IV. STAKEHOLDER RELATIONS
Good corporate governance of the Bank requires maintaining a healthy and stable relationship
with its stakeholders, which includes its employees, its shareholders and investors, its depositors
and customers, its suppliers and creditors, the community and environment. UnionBank
ensures that in its relationship with these stakeholders, it exercises fairness, accountability and
transparency which animate all aspirations for good corporate governance.
Finally, the Bank, through its Compliance Officer, annually certifies the Bank’s
compliance with its CG Manual. A certification for 2010 compliance was issued and
submitted to the SEC and the PSE on 31 January 2011.
ƒ
Corporate Governance Endeavors
The Bank continues to adopt means to improve its corporate governance. The Compliance
and Corporate Governance Office, jointly with the Human Resource Group and in
partnership with the Institute of Corporate Directors (ICD) conducted the fi rst in a series
of corporate governance orientation courses for its senior management executives and
other key officers.
The Bank also participates in significant events and activities promoting best governance
practices. Among the 2010 key events were ICD’s Annual Working Session with the
theme “Addressing CG Expectations and Realities: Making Best Practices Work;” Asian
Institute of Management Hills Program on Governance’s “Corporate Governance Trends
in the 100 Largest Publicly Listed Companies in the Philippines” and the Chartered
Financial Analyst Society of the Philippines’ “Corporate Governance Global Update.”
It is also actively involved in associations advocating good corporate governance. For
example, the Bank is a member of Good Governance Advocates and Practitioners of the
Philippines.
ETHICAL STANDARDS
•
EMPLOYEES
The employee plays a crucial role in the well-being and future of the Bank. He is a
contributor to every endeavor, every initiative, every activity of the enterprise. In turn,
the Bank and its business are crucial to the well-being and future of the employee, being
his source of livelihood; the employee has a stake in the success of the Bank.
The Bank ensures that its employees are competent and dedicated through proper talent
selection and acquisition. They are given adequate orientation and training to improve and
further develop their skills and potentials. Employees are properly equipped to allow them
to perform their tasks with maximum productivity. The Bank provides safe and healthy
workplaces for the protection of its employees.
UnionBank has established a “UnionBank University” consisting of different “academies”
where employees are given basic as well as advanced training in the different disciplines
needed to perform the various activities in the Bank. Among these academies are Six
Sigma, Finance, Self-Mastery, I.T., Leadership & Management, Marketing, Operations, Risk,
and Sales.
73
CORPORATE GOVERNANCE REPORT
Employees are given competitive compensation and benefits commensurate to their work
and their performance. They are provided with retirement benefits through a defi ned
benefit plan. Rank and fi le employees are properly represented through a collective
bargaining agreement (CBA).
Qualified employees of the Bank are given the opportunity to avail of a Stock Investment Loan
Program (SILP). Through this Program, the employees are given a bigger chance to benefit
from the business success of the Bank, further bolstering their stake in its future.
way to fulfill these. The Bank is known for Innovation, and this reputation was born out of
the Bank’s drive to satisfy the customer’s emerging needs.
UnionBank recognizes its obligation to be truthful and objective in its dealings with customers.
While the Bank is entitled to employ all fair and honest means to promote its products and
services, it does not knowingly make false representations to its customers.
• SUPPLIERS
• SHAREHOLDERS AND OTHER INVESTORS
Creation and maximization of shareholder value is the Bank’s primary duty to its shareholders
and other investors. To this end, the Bank applies its utmost expertise and effort, harnessing
the financial, intellectual, human and physical resources at its command. At the same time,
the Bank remains committed to protect shareholders’ rights as provided by law and contained
in the Bank’s CG Manual, remove impediments to the exercise of shareholder rights and
supply means to address complaints regarding alleged violation of such rights.
74
The Bank maintains frequent and clear communications with the public, including its
shareholders and other investors. It has a company website and a periodic “UnionBanker”
newsletter, where its stakeholders may be apprised of important announcements and
business developments. It has an Investor Relations Office whose mission is to strengthen
the Bank’s relations with investors through the development and implementation of an
investor relations program. And it has the statutory disclosures to the Philippine Stock
Exchange (PSE) which are accessible to the public through the PSE website, as well as
other regulatory bodies like the SEC.
• DEPOSITORS AND OTHER CUSTOMERS
The Bank understands that when the customer deposits or invests his money with it,
he does so relying on the Bank’s reputation for prudence and good judgment. The Bank
zealously protects this reputation and will always extend itself to live up to the customer’s
expectations. In addition, the Bank realizes that the customer expects and is entitled by
law to confidentiality regarding his deposits, investments and other information regarding
his business with the Bank. With equal zeal, the Bank will protect this confidentiality to
the full extent provided by law.
Although the Bank does offer various banking products, it views itself as a provider of
solutions, rather than a seller of any specific product. Therefore, when it approaches a new
customer, its first interest is to ascertain his banking needs in order that the Bank may find a
UnionBank upholds the principles of truthfulness, fairness and respect in its dealings with
its suppliers. While the Bank may actively negotiate for favorable terms with its suppliers,
it does not knowingly mislead them with respect to competitors’ price and terms, the
Bank’s plans for future purchases, or other particulars of their transactions with the Bank.
UnionBank does not use its vantage position as customer of the supplier, to impose unfair
conditions that could not have been obtained by negotiations in good faith, or commit acts
or omissions that unjustly breach contractual obligations.
• STATE
It is UnionBank’s policy to strictly comply with all relevant laws and government regulations.
Every effort is exerted to ensure that regulatory requirements are complied with promptly.
• COMMUNITY
The Bank is constantly aware that its business is impressed with public interest. Therefore,
it always acts with deliberateness and care as it pursues its day-to-day undertakings, and
more so when it conceives and develops new products, programs and business strategies.
The Bank realizes that it operates not in a vacuum but in a pulsing, dynamic community of
people moving about in accordance with their own needs, concerns, aspirations, resources
and potentials. Therefore, it is always sensitive to their sentiments and perceptions, and is
alert to opportunities by which it can contribute to the community’s well-being.
To this end, the Bank has established a Corporate Social Responsibility (CSR) Unit, whose
initiatives include, among others, a program that is focused on promoting literacy and
values formation in elementary students. The Bank has also religiously set aside a fi xed
portion of its net profit each year in order to fund the (CSR) activities.
INTERNAL CAPITAL ADEQUACY ASSESSMENT PROCESS (ICAAP)
ENSURING SUFFICIENT CAPITAL
On 15 January 2009, the Bangko Sentral ng Pilipinas (BSP) issued Circular No. 639 articulating the
need for Banks to adopt and document an internal capital adequacy assessment process (“ICAAP”). All
universal and commercial banks are expected to perform a thorough assessment of all their material
risks, as well as maintain capital adequate to support these risks. This is intended to complement the
current regulatory capital requirement of at least 10% of risk assets, which covered only credit, market
and operational risks. On 29 December 2009, BSP issued Circular No. 677 effectively extending the
implementation of the ICAAP from January 2010 to January 2011.
Cognizant of the importance of a strong capital base to meet strategic and regulatory requirements, the
Bank has adopted a robust ICAAP on a group-wide level that is consistent with its risk philosophy and
risk appetite.
The ICAAP’s objective is to ensure that the Board of Directors (BOD) and Senior Management actively
and promptly identify and manage the material risks arising from the general business environment,
and that an appropriate level of capital is maintained to cover these risks. To test the adequacy of its
capital even under difficult conditions, the Bank conducts regular stress testing to assess the effects
of extreme but plausible events on its capital. The results are thoroughly discussed during Risk
Management Committee meetings, and reported to the Board. In the course of its discussions, the
BOD and Senior Management may request for additional stress testing scenarios or revisions to the test
assumptions in order to better align these to current trends and forecasts.
The Bank has a cross-functional ICAAP working team, comprised of representatives from the core
risk management units - credit, market and operational, fi nancial controllership, treasury, corporate
planning, internal audit, and compliance. This ensures a well-coordinated approach to the development,
documentation, implementation, review, improvement, and maintenance of the various sub-processes
included in the ICAAP. To assure the quality of its ICAAP, the Bank engaged an independent consultant
to review and evaluate the ICAAP, comparing it with the requirements of regulatory guidelines and
global best practices, and observing its actual implementation in the Bank. The consultant also
conducted a Risk Assessment Workshop for the BOD, members of the Senior Management team, and
the ICAAP working team. In addition, the members of the Bank’s Internal Audit Division (IAD) were
given further training to enhance their expertise particularly on the subjects of Basel II and ICAAP.
IAD is in the process of further building its capability to ensure an effective and independent review
of the ICAAP.
The Bank’s ICAAP Document was presented to and approved by the Board in January 2011. It embodies
the Bank’s risk philosophy, risk appetite, and risk governance framework and structure, and integrates
these with the following: (1) the Bank’s strategic objectives and long-term strategies called FOCUS
2020, (2) the five-year fi nancial and business plans, and (3) the capital plan and dividend policy.
Subsequently, the Chairmen and/or Vice-Chairmen of all Board committees, together with members of
the Senior Management team and the ICAAP working team, presented and discussed the Bank’s ICAAP
with the BSP Deputy Governor and the BSP’s ICAAP Review Team.
75
MANAGEMENT DIRECTORY
CHAIRMAN & CEO
Justo A. Ortiz
PRESIDENT & COO
Victor B. Valdepeñas
EXECUTIVE VICE PRESIDENTS
Edwin R. Bautista
Transaction Banking
Genaro V. Lapez
Consumer Finance
Guia C. Lim
Corporate Banking
Teodoro M. Panganiban
Channel Management
Process & Quality Management
Beatriz B. Romulo
Commercial Banking
SENIOR VICE PRESIDENTS
Catalino S. Abacan
Roberto F. Abastillas
Norberto M. Belen
Ramon R. Castro
Ramon G. Duarte
Joyce S. Gonzalez
Cesar G. Ilagan
Ana Marie D. Lirio
Fe B. Macalino
Angelo Dennis L. Matutina
Manuel G. Santiago, Jr.
Ceferino P. Tolentino, Jr.
Jose Levi S. Villanueva
FIRST VICE PRESIDENTS
Joseling L. Arce
Paul Patrick M. Carague
Amado B. Castaño, Jr.
Mardonio C. Cervantes
Frederick E. Claudio
Michael Jack B. Garcia
Danilo A. Macalinao
Ramon D.S. Matias
Raquel P. Palang
Peter Ismael F. Quiambao
Antonio Martin D. Reyes
Michaela Sophia E. Rubio
VICE PRESIDENTS
Myrna E. Amahan
Ermelindo S. Andal, Jr.
Ma. Catherine E. Bautista
Catherine M. Cheung
Ropi F. Dangazo
Gerard D. Darvin
Ramon Vicente V. De Vera, II
Rebecca M. Dela Cruz
Jonathan Jerald V. Deomano
Eduardo V. Enriquez, III
Ma. Christina A. Escolar
Marissa B. Espino
Antonino Agustin S. Fajardo
Anna Bella G. Gatbonton
Joyvalerie B. Gatdula
Julie C. Go
Tirso Raymond S. Gutierrez
James Morris P. Ileto
Leonides F. Intalan
Ma. Josefina E. Jalandoni
Concepcion P. Lontoc
Ma. Cristina P. Maceren
Dominic R. Milan
Josefina P. Palad
Alicia A. Pastoral
Ramon R. Pichay
Edwin G. Pineda
Alejandro E. Reyes
Roman C. Reyes, III
Dinesh M. Sahijwani
Menchie M. Tormon
Rosa Maria Treichler
Marie Aimee S. Tumao
Roy A. Viguilla
ASSISTANT VICE PRESIDENTS
Roselyn F. Abad
Raymond Anthony B. Acosta
Junice A. Aguilar
Alita R. Ambayec
Dennis O. Aquino
Apolinar F. Balneg
Mary Margaret M. Barro
Susan E. Bautista
Patricia P. Benito
Maria Cecilia Teresa S. Bernad
Augusto L. Bondoc
Dollie B. Buenconsejo
Donna Vittoria F. Castell
Efrenilo L. Cayanga, Jr.
Hannah Theresa S. Contreras
Socorro Jessymel T. Cruz
Joebart T. Dator
Gerardo J. De Leon
Ana Maria A. Delgado
Mary Antonette D. Evalle
Rachel Christine T. Geronimo
Ramon Gregorio O. Guevara
Jose Gerardo E. Guillen
Mariano Dominick F. Lacson
Stella Marie L. Layug
Virgilio N. Lugtu
Melanio S. Ma
Edna R. Makalinaw
Marlon R. Mallari
Joseph F. Manzano
Ma. Eloisa Jovita M. Mariano
Ma. Romina C. Meresen
Rodrigo J. Montaniel
Leticia A. Moreno
Derrick J. Nicdao
Lennie P. Perez
Ruby Gisela L. Perez
Philippe D. Quito
Jillaine R. Ramos
Robert Rol B. Ramos
Agnes S. Santos
Edward B. Santos
Enrique A. Santos
Socorro B. Santos
Maria Magdalena V. Surtida
Margie M. Tan
Fides C. Tiongson
Jo-Ann Fatima L. Tolentino
Ermilinda P. Torregosa
Leonora R. Tuzon
Elvis A. Yu
76
CORPORATE INFORMATION
SUBSIDIARIES
UNION PROPERTIES, INC.
Justo A. Ortiz
Chairman
FIRST UNION PLANS, INC.
Edwin R. Bautista
Chairman
Jose Mari M. Cacho
President
Romeo C. Kagalingan
President
HEAD OFFICE
UnionBank Plaza, Meralco Avenue corner Onyx and
Sapphire Roads, Ortigas Center, Pasig City 1605
Trunk Line: (02) 667-6388
Fax: (02) 636-5259; 636-5261; 636-6289
SWIFT CODE: UBPHPHMM
Web Site/Internet Bank: www.unionbankph.com
FIRST UNION DIRECT
Edwin R. Bautista
Chairman
INVESTOR SERVICES
Atty. Fe Becina-Macalino
Corporate Secretary and General Counsel
21/F UnionBank Plaza, Meralco Avenue corner Onyx and
Sapphire Roads, Ortigas Center, Pasig City 1605
STOCK TRANSFER DEPARTMENT
Reymundo A. Mendoza
Stock Transfer and Services Division
23/F UnionBank Plaza, Meralco Avenue corner Onyx and
Sapphire Roads, Ortigas Center, Pasig City 1605
CUSTOMER SERVICE METRO MANILA
Hotline: 841-8600
Romeo C. Kagalingan
Jose Mari M. Cacho
UNIONBANK CREDIT CARDS CUSTOMER SERVICE
Platinum and Gold Card Dedicated Premiere Customer Service
(02) 631-7528
TOLL FREE NUMBERS
Domestic Calls: 1-800-1888-2277
Universal Toll Free: (IAC)-800-8277-2273
(Applicable in Australia, Israel, Japan, Koreo-Koreatel, Koreal-Onse,
Malaysia, Netherlands, Singapore, Spain, Switzerland, and USA)
77
The 2010 Annual Report is published by UnionBank
Marketing Services for stockholders, clients
and friends.
Design: OP Communications, Inc.
Photography: Wig Tysmans
Photos used for graphic layout of Genting, ICTSI
and Starbucks: Courtesy of clients
Liwayway photo and graphic layout:
Courtesy of client
Playa Asya Resort background photo:
Courtesy of client
Printing: Solutions Hong Kong
BusinessLine and Trust graphics:
PC&V Communications
Annual Report 2010
Financial Statements 2010
Annual Report 2010