BDO UNIBANK, INC, AND SUBSIDIARIES

STATEMENTS OF FINANCIAL POSITION

DECEMBER 31, 2013, 2012, AND 2011
(AMOUNTS IN MILLIONS OF PHILIPPINE PESO)
ASSETS
CASH AND OTHER CASH ITEMS
DUE FROM BANGKO SENTRAL NG PILIPINAS
DUE FROM OTHER BANKS
TRADING AND INVESTMENT SECURITIES
LOANS AND OTHER RECEIVABLES - net
PREMISES, FURNITURE, FIXTURES AND EQUIPMENT
INVESTMENT PROPERTIES - net
OTHER RESOURCES - net
TOTAL ASSET
LIABILITIES AND EQUITY
DEPOSIT LIABILITIES
Demand
Savings
Time
BILLS PAYABLE
SUBORDINATED NOTES PAYABLE
OTHER LIABILITIES
TOTAL LIABILITIES
EQUITY
ATTRIBUTABLE TO:
SHAREHOLDERS OF THE PARENT BANK
NON-CONTROLLING INTERESTS
Total Equity
TOTAL LIABILITIES AND EQUITY

Outstanding Shares
BVPS

TBVPS

2011A

2012A

Actual
2013A

2014A

2015A

33,129.00
124,894
24,719
188,418
673,927
15,690
10,137
23,273

21,539.00
156,591
12,645
237,294
760,500
16,390
9,089
27,479

27,824.00
408,383
26,939
227,910
922,553
17,908
10,381
30,880

41,342.00
269,542
45,621
221,510
1,212,930
21,093
13,861
37,750

42,729.00
271,808
24,837
225,759
1,382,752
24,995
14,633
43,741

1,094,187

1,241,527

1,672,778

1,863,649

2,031,254

858,569
48,499
482,517
327,553

931,641
48,936
543,366
339,339

1,345,333
79,601
695,243
570,489

1,492,282
85,807
872,976
533,499

1,663,853
104,066
1,033,652
526,135

59,474
38,255
44,089

72,179
28,180
55,156

94,243
3,007
65,841

100,361
10,030
81,307

97,543
10,030
60,215

1,000,387

1,087,156

1,508,424

1,683,980

1,831,641

93,167
633
93,800

153,714
657
154,371

163,711
643
164,354

179,036
633
179,669

198,990
623
199,613

1,094,187

1,241,527

1,672,778

1,863,649

2,031,254

2787.7
33.42

3217.3
47.78

3664.4
44.68

3640.8
49.17

3663.0
54.32

32.974

3,645,375,218

47.165

44.110

47.724

52.007

2016A

2017A

Forecasted
2018A

2019A

2020A

59,296
271,808
24,837
225,759
1,654,921
21,900
14,995
43,741

68,444
271,808
24,837
225,759
1,980,660
18,541
14,400
43,741

66,258
271,808
24,837
225,759
2,370,516
15,182
13,816
43,741

56,696
271,808
24,837
225,759
2,837,107
13,998
13,239
43,741

78,807
271,808
24,837
225,759
3,395,538
13,378
12,667
43,741

2,317,257

2,648,190

3,031,917

3,487,185

4,066,535

1,913,315
130,083
1,188,700
594,533

2,201,430
162,603
1,367,005
671,822

2,534,468
203,254
1,572,055
759,159

2,919,780
254,067
1,807,864
857,849

3,404,107
355,694
2,079,043
969,370

110,626
10,030
60,215

125,898
10,030
60,215

143,763
10,030
60,215

174,236
10,030
60,215

221,719
10,030
60,215

2,094,186

2,397,572

2,748,476

3,164,262

3,696,071

222,448
623
223,071

249,995
623
250,618

282,818
623
283,441

322,300
623
322,923

369,841
623
370,464

2,317,257

2,648,190

3,031,917

3,487,185

4,066,535

3663.0
60.73

3663.0
68.25

3663.0
77.21

3663.0
87.99

3663.0
100.97

58.433

65.975

74.957

85.757

98.757

1.19683
1.150000

1521027.2 1673129.92 1840442.912 2024487.203

2226935.924

BDO UNIBANK, INC, AND SUBSIDIARIES

INCOME STATEMENT
DECEMBER 31, 2013, 2012, AND 2011
(AMOUNTS IN MILLIONS OF PHILIPPINE PESO)
2011A
INTEREST INCOME
INTEREST EXPENSE
NET INTEREST INCOME
IMPAIRMENT LOSSES - net
NET INTEREST INCOME AFTER IMPAIRMENT LOSSES
OTHER OPERATING INCOME
OTHER OPERATING EXPENSES
PROFIT BEFORE TAX
TAX EXPENSE
NET PROFIT
ATTRIBUTABLE TO:
SHAREHOLDERS OF THE PARENT BANK
NON-CONTROLLING INTERESTS
EARNINGS PER SHARE
Outstanding shares
BASIC
DILUTED
Effective Tax Rate

50467
16866
33601
6144
27457
20899
35773
12583
1739
10844

10787
57
10844
2787.66
3.89
3.89
14%

2012A

Actual
2013A

Forec
2014A

2015A

2016A

54014
17893
36121
4941
31180
24427
39494
16113
1571

56606
13440
43166
7001
36165
31844
43259
24750
2104

63583
12358
51225
5114
46111
29487
48530
27068
4240

72127
15166
56961
3000
53961
31939
55144
30756
5701

84814
17044
67770
9001
58769
32587
62032
29323
5865

14542

22646

22828

25055

23458

14483
59
14542

22608
38
22646

22805
23
22828

22608
38
22646

3217.26
4.52
4.52

3664.40
6.22
6.18

3640.83
6.27
6.27

10%

9%

16%

3663.01
3663.01
6.84 6.404104408
6.84 6.404104408
19%

20%

Forecasted
2017A
2018A

2019A

2020A

99842
19213
80629
9901
70728
33677
69972
34433
6887

117571
21720
95851
10891
84960
35194
79125
41029
8206

138498
24621
113877
11980
101897
37141
89686
49353
9871

163217
28267
134949
13178
121771
39541
101886
59426
11885

27546

32823

39482

47541

3663.01
3663.01
3663.01
3663.01
7.520114741 8.960688628 10.77865978 12.97859333
7.520114741 8.960688628 10.77865978 12.97859333
20%

20%

20%

20%

BDO UNIBANK, INC, AND SUBSIDIARIES

STATEMENT OF CASH FLOWS
DECEMBER 31, 2013, 2012, AND 2011
(AMOUNTS IN MILLIONS OF PHILIPPINE PESO)

CASH FLOWS FROM OPERATING ACTIVITIES

Profit before tax
Adjustments for:
Interest income
Interest received
Interest paid
Interest expense
Depreciation and amortization
Impairment losses
Share in net profit of associates
Fair value loss (gain)
Income from acquisition of a subsidiary
Operating profit before changes in operating resources and liabilities
Decrease(increase) in financial assets at fair value throught profit or loss
Increase in loans and other receivables
Decrease (increase) in investment properties
Increase in other resources
Increase in deposit liabilities
Increase (decrease) in other liabilities
Cash generated from (used in) operations
Cash paid for income tax
Net Cash From (Used in) Operating Activities

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisitions of available-for-sale securities
Proceeds from disposals of available-for-sale securities
Acquisitions of premises, furniture, fixtures, and equipment
Proceeds from disposals of premises, furniture, fixtures, and equipment
Acquisitions of held-to-maturity investments
Maturities and disposals of held-to-maturity investments
Net Cash From (Used in) Investing Activities

CASH FLOWS FROM FINANCING ACTIVITIES

Dividends paid
Net proceeds from (payments of) bills payable
Proceeds from (redemption of) subordinated notes payable
Net proceeds from issuance of stock rights
Proceeds from issuance of senior notes payable
Transaction costs paid from issuance of stock dividends
Net Cash From (Used in) Financing Activities

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (Carried Forward)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (Brought Forward)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
Cash and other cash items
Due from Bangko Sentral ng Pilipinas
Due from other banks
Securities purchased under reverse repurchase agreement
Foreign currency notes and coins

CASH AND CASH EQUIVALENTS AT END OF YEAR

Cash and other cash items
Due from Bangko Sentral ng Pilipinas
Due from other banks
Securities purchased under reverse repurchase agreement
Foreign currency notes and coins

2011A

2012A

12,583

16,113

(50,467)
47,288
(16,519)
16,866
2,850
6,144
(681)
587

(54,014)
53,495
(17,625)
17,893
3,059
4,941
(470)
(178)

18,651
1,969
(111,434)
1,498
(4,549)
75,929
5,192
(12,744)
(1,687)
(14,431)

(400,320)
399,775
(3,089)
531
(12,205)
22,099
6,791

Actual
2013A

24,750

2014A

2015A

27,068

30,756

23,214
(4,134)
(95,250)
1,188
(5,963)
72,945
11,763
3,763
(1,346)

(56,606)
56,737
(13,777)
13,440
2,760
7,001
(606)
(440)
(43)
33,216
22
(160,507)
(885)
(4,958)
413,734
12,075
292,697
(2,168)

(63,583)
62,529
(12,496)
12,358
3,262
5,114
(652)
(37)
(18)
33,545
1,076
(216,173)
(1,377)
(11,000)
147,105
18,543
(28,281)
(4,160)

(72,127)
71,124
(15,188)
15,166
3,961
3,000
(837)
(121)
35,734
(4,714)
(188,091)
1,072
(6,202)
171,671
(18,308)
(8,838)
(4,090)

2,417

290,529

(32,441)

(12,928)

(606,540)
612,048
(4,321)
73
(3,586)
2,899

(377,961)
383,247
(5,970)
194
-

(455,074)
451,700
(6,963)
126
-

(490)

(10,211)

(428,794)
391,344
(2,975)
32
(24,411)
21,094
(43,710)

573

(3,025)
(6,353)
14,905
-

(368)
(237)
(10,000)
43,099
12,790
(6)

(7,904)
21,974
(25,000)
-

(7,903)
6,100
7,023
-

5,527

45,278

(10,930)

5,220

(10,837)

3,985
3,985

280,172
280,172

(27,711)
(27,711)

(33,976)
(33,976)

26,673
138,482
21,777
2,912

33,129
124,894
24,719
4,989

189,844

187,731

21,539
156,591
12,645
941
1,907
193,623

27,824
408,383
26,939
8,407
2,242
473,795

41,342
269,542
45,621
86,173
3,406
446,084

33,129
124,894
24,719
4,989

21,539
156,591
12,645
941

187,731

191,716

27,824
408,383
26,939
8,407
2,242
473,795

41,342
269,542
45,621
86,173
3,406
446,084

42,729
271,808
24,837
69,490
3,244
412,108

(2,113)
(2,113)

(7,941)
(2,896)
-

2016A

Forecasted
2017A
2018A

2019A

2020A

29,323

34,433

49,353

59,426

41,029

(84,814)
145,712
(10,960)
17,044
3,359
9,001
108,666
(2,301)
(272,169)
(362)
249,462
83,296
(5,865)

(99,842)
167,981
(23,586)
19,213
3,359
9,901
111,459
(3,456)
(325,740)
595
288,115
70,974
(6,887)

(117,571)
166,781
(10,343)
21,720
3,359
10,891
115,866
(4,834)
(389,856)
584
333,038
54,800
(8,206)

(138,498)
195,679
(13,832)
24,621
1,184
11,980
130,487
(6,832)
(466,591)
577
385,312
42,954
(9,871)

(163,217)
228,912
(9,022)
28,267
620
13,178
158,165
(9,744)
(558,431)
572
484,327
74,889
(11,885)

77,431

64,087

46,594

33,083

63,003

(212,192)
201,582
(50,254)

(557,004)
545,864
(43,800)

(584,854)
573,157
(37,082)

(614,097)
601,815
(30,364)

(644,802)
631,906
(27,996)

(60,864)

(54,940)

(48,779)

(42,646)

(40,892)

16,567
16,567

9,147
9,147

(2,185)
(2,185)

(9,563)
(9,563)

22,111
22,111

42,729
271,808
24,837
69,490
3,244
412,108

59,296
271,808
24,837
69,490
3,244
428,675

68,444
271,808
24,837
69,490
3,244
437,823

66,258
271,808
24,837
69,490
3,244
435,637

56,696
271,808
24,837
69,490
3,244
426,075

59,296
271,808
24,837
69,490
3,244
428,675

68,444
271,808
24,837
69,490
3,244
437,823

66,258
271,808
24,837
69,490
3,244
435,637

56,696
271,808
24,837
69,490
3,244
426,075

78,807
271,808
24,837
69,490
3,244
448,186

BDO UNIBANK, INC, AND SUBSIDIARIES

OTHERS
in Mn PHP
2011A
Deposit Liabilities
Demand
Savings
Time
LTNCD
Total

48,499
482,517
327,553
858,569

Growth rate
Demand
Savings
Time
Interest Expense
Deposit Liabilities
Bills Payable and Other Liabilities
Total
Funding Cost
Bills Payable
Foreign Banks
Senior Notes
Local Banks
BSP
PDIC
Deposit Substitutes
Other
Total
Growth Rates
Foreign Banks
Senior Notes
Local Banks
BSP
PDIC
Deposit Substitutes

13,006
3,682
16,688
1.5%

13,694
13,210
132
968
4,472
17,152
9,846
59,474

Other

OTHER OPERATING EXPENSE

Compensation and benefits

Taxes and licenses
Occupancy
Fees and commissions
Insurance
Security, clerical, messengerial and janitorial
Advertising
Representation and entertainment
Travelling
Repairs and maintenance
Power, light and water
Supplies
Information technology
Telecommunication
Amortization of computer software
Freight
Litigation on assets acquired
Miscellaneous
Total Other Operating Expenses
Growth rate
Compensation and benefits
Taxes and licenses
Occupancy
Fees and commissions
Insurance
Security, clerical, messengerial and janitorial
Advertising
Representation and entertainment
Travelling
Repairs and maintenance
Power, light and water
Supplies
Information technology
Telecommunication

2011
13,459.00
3,662.00
4,365.00
1,537.00
1,694.00
1,952.00
2,172.00
872.00
602.00
737.00
803.00
442.00
460.00
375.00
373.00
214.00
754.00
1,300.00
35,773.00

Amortization of computer software

Freight
Litigation on assets acquired
Miscellaneous
Retained Earnings

34,967.00

2012A

Actual
2013A

2014A

2015A

48,936
543,366
339,339

79,601
695,243
570,489

85,807
872,976
533,499

104,066
1,033,652
526,135

931,641

1,345,333

1,492,282

1,663,853

1%
13%
4%

13,122
4,694
17,816
1.4%

22,070
24,843
3,657
1,245
13,925
6,439
72,179

61%
88%
2670%
29%
-100%
-19%

63%
28%
68%

10,421
3,019
13,440
0.8%

19,044
26,890
4,578
300
27,951
15,480
94,243

-14%
8%
25%
-76%
0%
101%

8%
26%
-6%

10,441
1,917
12,358
0.7%

29,857
27,111
3,550
22,779
17,013
51
100,361

57%
1%
-22%
7493%
0%
-39%

21%
18%
-1%

12,526
2,640
15,166
0.8%

38,844
28,555
8,153
570
###
21,421
97,543

30%
5%
130%
-97%
0%
26%

-35%

140%

-100%

-100%

2012
15,724.00
4,042.00
4,707.00
1,649.00
1,864.00
2,120.00
2,361.00
953.00
687.00
654.00
895.00
389.00
247.00
330.00
376.00
204.00
719.00
1,573.00
39,494.00

Actual
2013
16,480.00
4,769.00
4,948.00
2,687.00
2,019.00
2,260.00
2,499.00
1,139.00
761.00
766.00
863.00
485.00
485.00
427.00
135.00
210.00
575.00
1,751.00
43,259.00

2014
18,081.00
5,780.00
5,704.00
3,147.00
2,856.00
2,526.00
2,427.00
1,146.00
871.00
959.00
920.00
515.00
383.00
432.00
206.00
241.00
461.00
1,875.00
48,530.00

2015
21,120.00
6,683.00
6,675.00
3,712.00
3,300.00
2,628.00
2,155.00
1,442.00
1,059.00
1,036.00
903.00
522.00
427.00
420.00
285.00
259.00
152.00
2,366.00
55,144.00

16.83%
10.38%
7.84%
7.29%
10.04%
8.61%
8.70%
9.29%
14.12%
-11.26%
11.46%
-11.99%
-46.30%
-12.00%

4.81%
17.99%
5.12%
62.95%
8.32%
6.60%
5.84%
19.52%
10.77%
17.13%
-3.58%
24.68%
96.36%
29.39%

9.71%
21.20%
15.28%
17.12%
41.46%
11.77%
-2.88%
0.61%
14.45%
25.20%
6.60%
6.19%
-21.03%
1.17%

16.81%
15.62%
17.02%
17.95%
15.55%
4.04%
-11.21%
25.83%
21.58%
8.03%
-1.85%
1.36%
11.49%
-2.78%

0.80%
-4.67%
-4.64%
21.00%
40,518.00

-64.10%
2.94%
-20.03%
11.32%
55,343.00

52.59%
14.76%
-19.83%
7.08%
70,242.00

38.35%
7.47%
-67.03%
26.19%
87,206.00

2016A

2017A

Forecasted
2018A

2019A

130,083
1,188,700
594,533

162,603
1,367,005
671,822

203,254
1,572,055
759,159

254,067
1,807,864
857,849

1,913,315

2,201,430

2,534,468

2,919,780

25%
15%
13%

14,404
2,640
17,044
0.8%

46,613
29,983
9,784
684
23,563
110,626

20%
5%
20%
20%
0%
10%

25%
15%
13%

16,573
2,640
19,213
0.8%

55,935
31,482
11,740
821
25,919
125,898

20%
5%
20%
20%
0%
10%

25%
15%
13%

19,080
2,640
21,720
0.8%

67,122
33,056
14,088
985
28,511
143,763

20%
5%
20%
20%
0%
10%

25%
15%
13%

21,981
2,640
24,621
0.8%

87,259
34,709
19,724
1,182
31,362
174,236

30%
5%
40%
20%
0%
10%

0%

0%

0%

0%

2016
23,638.19
7,767.56
7,422.80
4,627.45
3,898.65
2,830.82
2,150.77
1,635.22
1,219.61
1,128.06
929.89
544.17
419.13
432.07
266.46
271.66
101.85
2,748.10
62,032.45

2017
26,456.63
9,028.13
8,254.39
5,768.66
4,605.90
3,049.29
2,146.55
1,854.34
1,404.58
1,228.30
957.58
567.28
411.40
444.49
249.12
284.93
68.25
3,191.91
69,971.71

Projected
2018
29,611.11
10,493.28
9,179.13
7,191.32
5,441.45
3,284.62
2,142.34
2,102.82
1,617.60
1,337.45
986.09
591.37
403.81
457.26
232.91
298.86
45.73
3,707.39
79,124.54

2019
33,141.72
12,196.20
10,207.47
8,964.83
6,428.57
3,538.11
2,138.13
2,384.59
1,862.93
1,456.30
1,015.45
616.48
396.37
470.40
217.76
313.46
30.64
4,306.12
89,685.54

11.92%
16.23%
11.20%
24.66%
18.14%
7.72%
-0.20%
13.40%
15.17%
8.89%
2.98%
4.25%
-1.84%
2.87%

11.92%
16.23%
11.20%
24.66%
18.14%
7.72%
-0.20%
13.40%
15.17%
8.89%
2.98%
4.25%
-1.84%
2.87%

11.92%
16.23%
11.20%
24.66%
18.14%
7.72%
-0.20%
13.40%
15.17%
8.89%
2.98%
4.25%
-1.84%
2.87%

11.92%
16.23%
11.20%
24.66%
18.14%
7.72%
-0.20%
13.40%
15.17%
8.89%
2.98%
4.25%
-1.84%
2.87%

-6.51%
4.89%
-32.99%
16.15%
87,206.00

-6.51%
4.89%
-32.99%
16.15%
87,206.00

-6.51%
4.89%
-32.99%
16.15%
87,206.00

-6.51%
4.89%
-32.99%
16.15%
87,206.00

2020A

355,694
2,079,043
969,370
3,404,107

40%
15%
13%

25,627
2,640
28,267
0.8%

117,800
36,444
31,558
1,418
34,499
221,719

35%
5%
60%
20%
0%
10%

1.13

0%

2020
37,093.29
14,175.48
11,351.02
11,175.72
7,594.77
3,811.16
2,133.94
2,704.12
2,145.46
1,585.71
1,045.69
642.66
389.06
483.92
203.59
328.78
20.53
5,001.54
101,886.46

11.92%
16.23%
11.20%
24.66%
18.14%
7.72%
-0.20%
13.40%
15.17%
8.89%
2.98%
4.25%
-1.84%
2.87%

-6.51%
4.89%
-32.99%
16.15%
87,206.00

BDO UNIBANK, INC, AND SUBSIDIARIES

OTHERS
Depreciation and Amortization
2011A
Buildings - Gross
Land/Improvements - Gross
Other Property/Plant/Equipment - Gross
Property/Plant/Equipment, Total - Net

Existing Assets

Land
Buildings
Improvements
Furniture and fixtures

Land
Opening
Depreciation
Closing
Buildings
Opening
Depreciation
Impairment
Closing
Improvements
Opening
Depreciation
Closing
Furniture and fixtures
Opening
Depreciation
Closing

11540
18219
12750
42509

Gross
Cost

6027
14681
4621
18778
44107

Actual
2012A
2013A
8906
8192
13844
30942

Accumulated
Depreciation

4230
2993
11625
18848

10247
8578
15471
34296

Carrying
Value

6027
10451
1628
7153
25259

INVESTMENT PROPERTY (2015)

Land
Buildings
TOTAL

Gross
Cost

10008
9494
19502

Accumulated
Depreciation

Impairment

2564

2205
100

2012
1391
581

2013
1482
591

Impairment
Land
Building
Amortization
Land
Building
TOTAL
Land
Cost
Dep.
Impairment
Carrying Value

Building
Opening
Dep.
Impairment
Carrying Value
INVESTMENT PROPERTIES-NET

Goodwill
Intangibles

2011
1247

1247

1972

2073

2011

2012
481
100
581

2013
140
451
591

2016
1067
79
988

2017
988
79
909

100

451

license
144
144

software
Opening
Depreciation
Closing

Net

Software

144

Grosscost Accumulated Carrying

1067
285
1067

ctual
2014A

2015A

2016A

8390
9207
15415
33012

14681
10648
18778
44107

9831
7173
4896
21900

% distribution

13.664%
33.285%
10.477%
42.574%

Depreciation

620
482
2257
3359

% Depr'd

Projected
2017A
2018A
9211
6691
2639
18541

Estimated
Useful Life

8591
6209
382
15182

Average
Life

2019A

2020A

7971
6027
0
13998

7351
6027
0
13378

Remaining
Useful Life

29%
65%
62%
43%

24
10
8

7
6
5

17
3
3

2016
6027
0

2017
6027

2018
6027

2019
6027

2020
6027

6027

6027

6027

6027

6027

2016
10451
620

2017
9831
620

2018
9211
620

2019
8591
620

2020
7971
620

9831

9211

8591

7971

7351

2016
1628
482
1146
7173
2016
7153
2257
4896

2017
1146
482
664

2018
664
482
182

2019
182
182
0

2020
0
0
0

2017
4896
2257
2639

2018
2639
2257
382

2019
382
382
0

2020
0
0
0

% of impairment

1.192%

2013
2287
79

Carrying
Value

% distribution

Depreciation

7803 497.663%
6830 472.103%

2014
2291
132

2015
2205
100

Estimated
Useful Life

% Depr'd

Average
Life

620

27%

15.15

2016F
2122
76

2017F
2043
57

2018F
1966
43

2019F
1892
33

2016F

2017F
83
24
107

2018F
80
18
98

2019F
77
14
91

74
11
84

2016F
2017F
2018F
2019F
10008
10008
10008
10008
0
0
0
2122
2043
1966
1892
7886
7965
8042
8116

2016F
2017F
2018F
2019F
7803
7110
6435
5773
618
618
618
618
76
57
43
33
7110
6435
5773
5123

2014
1482
3799

2015
4399
4087

2016
4399
4008

14995

14400

13816

13239

2017
4399
3929

2018
4399
3850

2019
4399
3771

2020
4399
3692

5281

8486

8407

8328

8249

8170

8091

2017
3020
909
3929

2018
3020
830
3850

2019
3020
751
3771

2020
3020
672
3692

0.1255179

2014
3020
779
3799

2015
3020
1067
4087

2016
3020
988
4008

2018
909
79
830

2019
830
79
751

2020
751
79
672

779

1067

DepreciatioDeprn % est. life

Average lifeRem. Life
79 0.277193
19
5
14

Remaining
Useful Life

11

2020F
1821
25
2020F
71
8
79
2020F
10008
0
1821
8187

2020F
5123
618
25
4480
12667

BDO UNIBANK, INC, AND SUBSIDIARIES

REVENUE BUILDUP
in Mn PHP
2011A
Interest Income
Commercial Banking
Investment Banking
Private Banking
Leasing and Financing
Others
Total Bankwide Interest Income
Breakdown (%)
Commercial Banking
Investment Banking
Private Banking
Leasing and Financing
Others

Interest Rates
Commercial Banking
Investment Banking
Private Banking
Leasing and Financing
Others
Weighted Lending Rates

47,972.00
56.00
1,006.00
49,034.00

97.83%
0.11%
2.05%
0.00%
0.00%

7.16%
0.01%
3.6%
0.00%
0.00%
7.08%

Total Deposits

858,569.00

% Growth in Deposits
Total Loans and Receivables
% Growth in Loan Portfolio

673,927.00

Interest Income Drivers

Commercial Banking Loan Portfolio
% Growth
interest rate
Investment Banking Loan Portfolio

670,146.00
7.16%
483,438

% Growth
interest rate
Private Banking Loan Portfolio
% Growth
interest rate
Leasing and Financing
% Growth
interest rate

0.01%
28,197
3.57%
186708
0.00%

Other Income (Others)

Service charges, fees and commisions
% Growth
Trading Gains - net
% Growth
Trust Fees
% Growth
Foreign Exchange Gains
% Growth
Rental
% Growth
Income from assets sold or exchanged
% Growth
Dividend
% Growth
Miscellaneous- Net
% Growth
TOTAL
% of impairment loss to gross loans

10528
3907
1727
1714
0
947
256
1820
20899.00
0.91%

2012A

Actual
2013A

2014A

51,576.00
88.00
1,046.00
-

54,262.00
72.00
956.00
1,292.00

60,673.00
73.00
1,298.00
1,445.00

52,710.00

56,582.00

63,489.00

97.85%
0.17%
1.98%
0.00%
0.00%

95.90%
0.13%
1.69%
2.28%
0.00%

95.56%
0.11%
2.04%
2.28%
0.00%

6.71%
0.02%
4.9%
0.00%
0.00%
6.66%

5.93%
0.01%
2.4%
0.49%
0.00%
5.74%

5.56%
0.01%
3.3%
0.52%
0.00%
5.39%

931,641.00

1,345,333.00

1,492,282.00

8.51%
760,500.00
12.85%

44.40%
922,553.00
21.31%

10.92%
1,212,930.00
31.48%

768,956.00
14.74%
6.71%

914,518.00
18.93%
5.93%

1,091,049.00
19.30%
5.56%

576857

645,124

812,322

19.3%
0.02%

11.8%
0.01%

25.9%
0.01%

21246
-24.65%
4.92%

39,840
87.52%
2.40%

38,870
-2.43%
3.34%

192099
2.89%
0.00%

266,261
38.61%
0.49%

277,047
4.05%
0.52%

11446.00
8.72%
8445.00
116%
1986
15.00%
-212
-112.37%
0
0.00%
671
-29.14%
422
64.84%
1669
-8.30%
24427.00

12991.00
13.50%
8422.00
0%
2473.00
24.52%
4342.00
-2148.11%
733.00
0.00%
840.00
25.19%
498.00
18.01%
1545.00
-7.43%
31844.00

15386
18.44%
5868
-30%
2624
6.11%
1244
-71.35%
992
35.33%
1067
27.02%
490
-1.61%
1816
17.54%
29487.00

0.65%

0.76%

0.42%

Projected
2015A

2016A

2017A

69,204.00
83.00
1,215.00
1,566.00

81,234.87
96.94
1,612.85
1,868.94

95,357.26
113.21
2,140.98
2,230.48

72,068.00

84,813.60

99,841.94

96.03%
0.12%
1.69%
2.17%
0.00%

95.78%
0.11%
1.90%
2.20%
0.00%

112.43%
0.13%
2.52%
2.63%
0.00%

5.40%
0.01%
2.4%
0.47%
0.00%
5.24%

5.40%
0.01%
2.4%
0.47%
0.00%
5.23%

5.40%
0.01%
2.4%
0.47%
0.00%
6.15%

1,663,853.00

1,913,314.85

2,201,429.68

11.50%
1,382,752.00
10.00%

14.99%
1,521,027.20
10.00%

15.06%
1,673,129.92
10.00%

1,280,724.00
17.38%
5.40%

1,503,373.33
17.4%
5.40%

1,764,729.45
17.4%
5.40%

948711

1107999.74

1294033.08

16.8%
0.01%

16.8%
0.01%

16.8%
0.01%

51,598
32.75%
2.35%

68,493.79
32.75%
2.35%

90,922.11
32.75%
2.35%

330641
19.34%
0.47%

394,602.62
19.34%
0.47%

470,937.43
19.34%
0.47%

16453
6.93%
4740
-19%
2909
10.86%
2433
95.58%
1262
27.22%
774
-27.46%
459
-6.33%
2909
60.19%
31939.00

17594.00
7%
3828.83
-19%
3224.95
11%
2433.00
0%
1605.49
27%
561.46
-27%
429.96
-6%
2909.00
0%
32586.69

18814.12
7%
3092.82
-19%
3575.23
11%
2433.00
0%
2042.47
27%
407.28
-27%
402.76
-6%
2909.00
0%
33676.67

0.22%

0.6%

0.6%

Projected
2018A

2019A

2020A

111,934.79
132.22
2,842.05
2,661.96

131,394.25
154.42
3,772.68
3,176.91

154,236.68
180.35
5,008.04
3,791.47

117,571.01

138,498.26

163,216.54

95.21%
0.11%
2.42%
2.26%
0.00%

94.87%
0.11%
2.72%
2.29%
0.00%

94.50%
0.11%
3.07%
2.32%
0.00%

5.40%
0.01%
2.4%
0.47%
0.00%
5.21%

5.40%
0.01%
2.4%
0.47%
0.00%
5.20%

5.40%
0.01%
2.4%
0.47%
0.00%
5.19%

2,534,468.00

2,919,780.42

3,404,107.35

15.13%
1,840,442.91
10.00%

15.20%
2,024,487.20
10.00%

16.59%
2,226,935.92
10.00%

2,071,521.41
17.4%
5.40%

2,431,648.06
17.4%
5.40%

2,854,381.45
17.4%
5.40%

1511301.45

1765049.21

2061401.27

16.8%
0.01%

16.8%
0.01%

16.8%
0.01%

120,694.60
32.75%
2.35%

160,216.11
32.75%
2.35%

212,678.95
32.75%
2.35%

562,039.02
19.34%
0.47%

670,763.96
19.34%
0.47%

800,521.45
19.34%
0.47%

20118.85
7%
2498.29
-19%
3963.54
11%
2433.00
0%
2598.38
27%
295.44
-27%
377.28
-6%
2909.00
0%
35193.78

21514.07
7%
2018.05
-19%
4394.03
11%
2433.00
0%
3305.60
27%
214.31
-27%
353.41
-6%
2909.00
0%
37141.47

23006.04
7%
1630.12
-19%
4871.28
11%
2433.00
0%
4205.31
27%
155.46
-27%
331.05
-6%
2909.00
0%
39541.27

0.6%

0.6%

0.6%

BDO
Valuation Summary

Discounted Cash Flows (DCF) Valuation

Excess Return Model
Market Comps
Average P/E
Median P/E
Average P/BV
Median P/BV
Transaction Comps
Average P/E (exc. Premium)
Median P/E (exc. Premium)
Average P/BV (exc. Premium)
Median P/BV (exc. Premium)

Chart Details
Excess Return Model
Average P/E
Median P/E
Average P/BV
Median P/BV
Average P/E (exc. Premium)
Median P/E (exc. Premium)
Average P/BV (exc. Premium)
Median P/BV (exc. Premium)
Average Price
Current Price
%upside

Equity
Value

Current
Price

Upside
Return

100.98

110.70

-8.78%

82.10
76.36
101.77
91.02

110.70
110.70
110.70
110.70

-25.84%
-31.02%
-8.06%
-17.78%

96.87
88.59
84.48
77.91

110.70
110.70
110.70
110.70

-12.49%
-19.97%
-23.69%
-29.62%

Equity
Value

Ave
Price
100.98
82.10
76.36
101.77
91.02
96.87
88.59
84.48
77.91
88.90
110.70
-19.70%

Current
Price
88.90
88.90
88.90
88.90
88.90
88.90
88.90
88.90
88.90

110.70
110.70
110.70
110.70
110.70
110.70
110.70
110.70
110.70

BDO UNIBANK, INC, AND SUBSIDIARIES

Trading Income
in Mn PHP
Interest Income on trading and investment securities
% growth

2011A
50,467

Trading, Investment, and Derivative Income

Financial Assets at FVTPL
AFS securities
HTM investments

4,823
92,875
93,670

Total Trading, Investment, and Derivative Income

191,368

Financial Assets at FVTPL

AFS securities
HTM investments
Total
Interest Income on:
Financial Assets at FVTPL
Derivative Financial Assets
Government Bonds
Other debt securities

3%
49%
49%
100%

1,272

AFS securities
Government debt securities
Quoted debt securities
Non quoted debt securities
Quoted equity securities
Non quoted equity securities

24,493

HTM investments
Government debt securities
Quoted debt securities
Non quoted debt securities

24,702

Total Interest Income - Trading, Investment, and Derivative

50,467

FVTPL Instruments
Held for trading (HFT)
All FVTPL are classified as HFT

Derivative Financial Assers

3,739

Government bonds
% growth

949

Other debt securities

% growth

58

Total FVTPL
Interest rates - FVTPL
Held-for-trading (HFT)

4,746

0%-14%

Available-for-sale instruments
Less: Allowance for Impairment
- Total AFS - net of impairment
% growth
Available-for-sale
Sold
Purchased

2,950
89,925

399,775
(400,320)
(545)

Purchased/Sold
Interest rates - AFS
HTM investments
% growth

100%
0%-13%
93,670

2012A
54,014
7%

Actual
2013A
56,606
5%

2014A
63,583
12%

2015A
72,127
13%

9,177
134,067
96,963

9,748
220,225

8,768
214,917
20,430

13,567
216,128
9,335

240,207

229,973

244,115

239,030

4%
56%
40%
100%

4%
96%
0%
100%

4%
88%
9%
100%

6%
90%
4%
100%

2,064

2,399

2,284

4,094

30,147

54,207

55,978

65,216.35

5,408

2,803.02

63,670

72,113

21,804

54,014

56,606

4,804

4,458

3,609

5,461

2,239
136%

1,984
-11%

4,199
112%

4,855
16%

1,986
3324%

3,294
66%

824
-75%

3,054
271%

9,029

9,736

0%-11%

0%-11%

8,632

0%-11%

13,370

0%-11%

2,913
131,154
46%

2,063
218,162
66%

2,175
212,742
-2%

3,936
212,192
-0.3%

391,344
(428,794)
(37,450)

612,048
(606,540)
5,508

383,247
(377,961)
5,286

451,700
(455,074)
(3,374)

110%

99%

99%

101%

0%-13%

0%-13%
96,963
4%

0%-11.6%
-

20,430

0%-11.6%
9,335
-54%

2016A
84,814
18%

Forecasted
2017A
2018A
99,842
117,571
18%
18%

2019A
138,498
18%

2020A
163,217
18%

15,868
222,802
10,269

19,324
233,942
11,295

24,158
245,639
12,425

30,989
257,921
13,667

40,733
270,817
15,034

248,938

264,561

282,221

302,577

326,584

6%
90%
4%
100%

7%
88%
4%
100%

9%
87%
4%
100%

10%
85%
5%
100%

12%
83%
5%
100%

1,071

1,304

1,631

2,092

2,749

66,840

74,861

81,061

87,693

135,408

10,269

11,295

12,425

13,667

15,034

78,180

87,461

95,116

103,452

153,192

5,461

5,461

5,461

5,461

5,461

5,826
20%

6,991
20%

8,389
20%

10,067
20%

12,081
20%

4,581
50%

6,872
50%

10,307
50%

15,461
50%

23,191
50%

24,158

30,989

40,733

15,868

19,324

6.75%

6.75%

6.75%

6.75%

6.75%

222,802
5%

233,942
5%

245,639
5%

257,921
5%

270,817
5%

201,582
(212,192)
(10,610)

545,864
(557,004)
(11,140)

573,157
(584,854)
(11,697)

601,815
(614,097)
(12,282)

631,906
(644,802)
(12,896)

105%

102%

102%

102%

102%

7.75%

7.75%

7.75%

7.75%

7.75%

10,269
10%

11,295
10%

12,425
10%

13,667
10%

15,034
10%

(4,354)

Discounted Cash Flows (DCF) Valuation

For the years ended December 31
in PHP '000

Multi-Period Excess Earnings Model

Tangible Book Value Per Share (TBVPST-1)
ROE
Ke
Excess Return/Spread over Profit
Excess Earnings
Continuing Growth Rate
Discount Factor
Excess Earnings Persistence Factor ()
PV of Discrete Excess Earnings
PV of Continuing Excess Earnings
Beginning Tangible BVPS
Equity Per Share
Current Price (as of Nov. 5, 2016)
%upside

9.1%

13.1%
0.9

2016E

2017E

2018E

2019E

2020E

58.43
11.0%
9.1%
1.8%
1.1

65.97
11.4%
9.1%
2.3%
1.5

74.96
12.0%
9.1%
2.8%
2.1

85.76
12.6%
9.1%
3.4%
3.0

98.76
13.1%
9.1%
4.0%
4.0

1.00

0.92

0.84

0.77

0.71

9.3
33.3
58.4
100.98
110.7
-8.8%

Terminal Year

4.49

0.71

Precedent Banking Sector M&A

Transaction Comps

Date
Jun-07
Oct-07
Jan-08
Apr-08
Jun-11
Jul-11
May-12
Jan-13
Jan-14
Jul-14
Aug-14
Sep-14
Jan-16
Average
Median

P/BV
0.68x
1.38x
1.44x
1.33x
1.60x
0.61x
1.14x
2.50x
3.42x
1.63x
1.63x
1.66x
2.82x
1.68x
1.60x

Average P/E (exc. Premium)

Median P/E (exc. Premium)
Average P/BV (exc. Premium)
Median P/BV (exc. Premium)

Deal
Acquirer
China Bank
San Miguel Group
SM Inv.
PNB
SECB
ISM Comm. Corp.
CIMB Bank
UBP
China Bank
P.G. Holdings (Lucio Co)
VFC Land Resources (Lucio Co)
Cathay Life
The Bank of Tokyo-Mitsubishi UFJ

Target
Manila Bank
BOC
BDO-EPCI
Allied Bank
PDB
PBCom
BOC
City Savings
Planters Bank
PBCom
PBCom
RCBC
SECB

%
Acquired
87.5%
34.0%
62.8%
100.0%
98.0%
97.3%
60.0%
99.5%
100.0%
37.7%
12.3%
20.0%
20.0%

15.13x
13.83x
1.39x
1.33x

Size
(PHP Mn)
1,661
2,077
37,225
31,221
1,299
4,721
12,204
5,985
1,820
6,127
1,989
17,727
36,900

6.40
6.40
60.73
58.43

P/E
NA
11.80x
19.40x
22.80x
NA
15.10x
35.10x
11.00x
NA
16.60x
16.60x
21.50x
12.78x
18.27x
16.60x

Premium
Paid
21%
19%
16%
23%
34%
13%
33%
21%
15%
20%
11%
25%
19%
21%
20%
96.87
88.59
84.48
77.91

Identifier
AUB.PS
BPI.PS
MBT.PS
SECB.PS
UBP.PS
CHIB.PS
RCB.PS
EW.PS
PSB.PS
PBB.PS
Average
Median

Company Name
Asia United Bank Corp
Bank of the Philippine Islands
Metropolitan Bank and Trust Co
Security Bank Corp
Union Bank of the Philippines
China Banking Corp
Rizal Commercial Banking Corp
East West Banking Corp
Philippine Savings Bank
Philippine Business Bank Inc A Savings Bank

Average Beta
Average Effective Tax Rate
Average D/E
Unlevered Beta
Marginal Tax Rate, BDO
D/E,
Levered Beta
Equity Risk Premium
5Y Gov't Bond
Cost of Equity

Beta
0.75
0.73
1.01
1.06
0.91
0.73
0.71
1.16
0.17
0.50
0.77
0.74

Effective
Tax Rate
0.14
21.90%
20.20%
11.00%
16.30%
12.60%
-6.40%
24.80%
-1.80%
25.80%
13.81%
15.01%

WACC
0.07
9.00%
7.80%
6.60%
8.50%
8.20%
6.00%
10.20%
4.10%
7.40%
7.53%
7.63%

Total Debt
to
Total
Equity
0.64
0.14x
1.12x
3.27x
0.82x
0.32x
1.70x
0.30x
0.55x
0.00x
0.89x
0.59x
0.77
13.81%
0.89x
0.44x
30.00%
0.90x
0.72x
6.20%
4.69%
9.13%

Market Approach
in Mn PHP except multiples and percentages
Public Comps (c/o Thomson Reuters Eikon Database)

Identifier

AUB.PS
BPI.PS
MBT.PS
SECB.PS
UBP.PS
CHIB.PS
RCB.PS
EW.PS
PSB.PS
PBB.PS
Average
Median
BDO.PS

Current
Price/Bk,
Tot Eqty,
LFY

Company Name

Company
Market
Cap
(in Mn
PHP)

Asia United Bank Corp

Bank of the Philippine Islands
Metropolitan Bank and Trust Co
Security Bank Corp
Union Bank of the Philippines
China Banking Corp
Rizal Commercial Banking Corp
East West Banking Corp
Philippine Savings Bank
Philippine Business Bank Inc A Savings Bank

57.86
122.99
62.53
144.26
65.25
62.60
42.39
44.61
60.89
43.70

471
7,620
4,995
3,165
1,600
1,527
1,015
578
481
153

BDO Unibank Inc

100.62

8,255

Multiple
12.82x
11.92x
1.68x
1.56x

6.40
6.40
60.73
58.43

Average P/E
Median P/E
Average P/BV
Median P/BV

Market
Cap
(in Mn
PHP)

Total Assets,
Reported
(FY0, in Mn PHP)

Book
Value Per
Share,
Total
Equity
(FY0, in
Mn PHP)

Net
Income
After
Taxes
(FY0, in
Mn PHP)

Current
P/E, LFY

23,160
374,984
245,790
155,729
78,719
75,154
49,966
28,423
23,686
7,509

154,427
1,524,956
1,770,678
535,219
444,162
529,815
518,988
234,177
170,292
65,954

42.66
40.10
63.97
92.61
58.96
31.01
43.55
21.97
83.74
16.57

32
392
440
158
128
119
109
43
50
11

15.32x
20.57x
13.23x
16.90x
13.12x
13.43x
9.92x
13.14x
10.09x
14.98x

406,205

2,042,775

57.28

534

16.31x

82.10
76.36
101.77
91.02

Historic
P/E
(FY0)

14.48x
18.08x
13.74x
11.53x
10.05x
12.30x
9.15x
13.11x
10.52x
18.14x
13.11x
12.71x
15.36x

Earnings
Per Share
- Mean
Growth
(This
Yr/Last Yr)

-0.4%
17.9%
0.0%
-5.9%
16.9%
1.5%
-8.4%
22.1%
41.7%
9.5%
1.5%
0.9%

Earnings
Per Share
Earnings
ROE
Return On
Forward
Per Share
Common Equity P/E
SmartEsti
Price-toEquity %, SmartEsti
(SmartEsti
mate
SmartEsti
Book
TTM
mate
mate )
Growth
mate
(FI0)
(FY1)
(FY1)
(This
(FY1, PHP)
Yr/Last Yr)

21.0%
-2.9%
-5.3%
17.6%
5.6%
-12.5%
25.6%

7.0%
5.6%
0.9%

10.0%
13.8%
9.0%
10.7%
17.0%
11.1%
8.1%
9.5%
12.5%
8.3%
11.0%
10.4%
13.3%

14.1%
9.4%
11.4%
13.5%
9.6%
7.5%
8.7%

10.6%
9.6%
12.8%

5.80
5.87
12.54
6.85
3.15
3.27
1.90

16.43x
13.19x
16.47x
10.86x
11.92x
10.91x
9.95x

3.07x
0.98x
1.56x
1.11x
2.02x
0.97x
2.03x

7.15

12.82x
11.92x
15.56x

1.68x
1.56x
1.76x

Effective
Tax Rate,
(%)
(FY0)

13.70%
21.90%
20.20%
11.00%
26.30%
12.60%
-6.40%
24.80%
-1.80%
28.80%
15.1%
17.0%
18.50%

Weighted Total Debt

Average
to Total
Cost of
Equity,
Capital,
Percent
(%)
(FY0)

7.50%
9.00%
7.80%
6.60%
8.50%
8.20%
6.00%
10.20%
4.10%
7.40%
7.53%
7.65%
9.00%

0.64x
0.14x
1.12x
3.27x
0.82x
0.32x
1.70x
0.30x
0.55x
0.00x
0.89x
0.59x
0.54x

BDO Unibank Inc | Ratios - Key Metrics | Thomson Reuters Eikon 11-Nov2016 18:37

Ratios - Key Metrics

Annual Standardised in Millions of Philippines Pesos
Industry Median

2011

2012

Net Interest Margin

2.71%

3.50%

3.40%

Efficiency Ratio

60.2%

66.4%

65.3%

Operating Leverage

(4.1%)

0.8%

1.8%

0.72

0.68

Profitability

Non-interest Income / Op Inc

0.46

% Fee Revenue

27.4%

22.4%

22.1%

Loan Growth

11.4%

19.1%

10.1%

Deposit Growth

10.7%

9.7%

8.5%

Loan Loss Provision (% of Avg. Loans)

0.96%

0.99%

0.70%

Nonperforming Loans (% of Total Loans)

1.99%

3.63%

3.09%

OREO (% of Total Loans)

0.11%

12.60%

15.30%

Risk

Other Bank
Tier 1 Risk-Adjusted Capital Ratio
EOP Loans / EOP Deposits
Securities % Avg. Earning Assets

0.85

0.78

0.80

18.5%

21.8%

23.9%

0.04

36.8%

1.6%

1.2%

1.4%

DuPont/Earning Power
Asset Turnover
x Pretax Margin
Pretax ROA
x Leverage (Assets/Equity)
Pretax ROE
x Tax Complement
ROE
x Earnings Retention
Reinvestment Rate

11.21

12.02

8.36

15.6%

13.3%

12.9%

0.86

0.90

0.78
13.4%

0.68

0.75

1.00

8.9%

8.7%

11.8%

2013

2014

2015

2016

2017

2018

3.20%

3.20%

3.20%

3.20%

3.20%

3.20%

57.7%

60.1%

62.0%

14.5%

(4.6%)

(3.5%)

0.77

0.68

0.60

20.6%

22.3%

21.8%

19.4%

19.9%

17.9%

44.4%

10.9%

11.5%

0.86%

0.52%

0.26%

0.15%

0.15%

0.15%

1.92%

1.50%

1.17%

1.05%

1.05%

1.05%

14.60%

14.09%

13.08%

13%

13%

13%

53.04%
50.84%
48.83%
(3.5%)
(3.5%)
(3.5%)
0.5544911 0.4761442 0.4142412
13.75%
12.98%
12.08%
17.48%
17.53%
17.58%
14.99%
15.06%
15.13%

0.66

0.71

0.75

0.86

0.90

0.94

20.2%

17.0%

15.1%

13%

13%

13%

1.7%

1.5%

1.6%

1.3%
10.39
13.66%
0.80

1.3%
10.57
11.37%
0.80

1.4%
10.70
11.93%
0.80

1.0
13.66%

1.0
11.37%

1.0
11.93%

10.55

10.72

10.48

15.6%

15.8%

16.3%

0.91

0.84

0.81

0.66

0.81

0.82

9.6%

10.9%

11.0%

2019

2020

3.20%

3.20%

46.98%
45.11%
(3.5%)
(3.5%)
0.3645001 0.3247179
11.13%
10.25%
17.64%
17.71%
15.20%
16.59%
0.15%

0.15%

1.05%

1.05%

13%

13%

0.97

1.00

13%

13%

1.4%
10.80
12.54%
0.80

1.5%
10.98
13.12%
0.80

1.0
12.54%

1.0
13.12%