Investor Presentation...No DST on credit extension/credit restructuring 11. Forbearance on various reportorial requirements to BSP, AMLA, SEC; extension of deadlines including BIR

THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS. STRICTLY CONFIDENTIAL.

Investor

Presentation

1Q 2020


Presenters

2

Cezar "Bong" Consing

President &CEO

Tere Marcial Javier

EVP & CFO

1Q 2020 Earnings Call

April 24, 20204:30-5:30 PM Philippine Time


Presentation Outline

I. Opening Remarks

II. Macroeconomic Overview

III. Financial and Operating Highlights

IV. Q&A

V. Closing Message

3


Macroeconomic Overview

4

THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS. STRICTLY CONFIDENTIAL.5

Global GDP forecasts point to a deep recession

ASEAN GDP Growth Forecasts (%)

US GDP Forecasts from Wall Street (%)

Successive cuts in global growth outlook

Severe contraction in US and EU

2020 Global Growth Forecasts (%)

FY 2019 FY 2020 Source

Indones ia 5.0 1.8 to 2.8 S&P, Fi tch

Malays ia 4.5 -1.1 to 1.0 Fitch, S&P, Moody's

Phi l ippines 5.9 -0.8 to 4.3 BSP, NEDA, DoF

Thai land 2.5 -4.2 to -2.5 Moody's , S&P

Vietnam 7.0 1.2 to 2.8 S&P, Fi tch

Singapore 0.7 -3.8 S&P

GDP and Inflation Forecasts from ADB (%)

2019 2020F 2021F 2019 2020F 2021F

Indonesia 5.0 2.5 5.0 2.8 3.0 2.8

Malaysia 4.3 0.5 5.5 0.7 1.0 1.3

Philippines 5.9 2.0 6.5 2.5 2.2 2.4

Singapore 0.7 0.2 2.0 0.6 0.7 1.3

Southeast Asia 4.4 1.0 4.7 2.1 1.9 2.2

Thailand 2.4 -4.8 2.5 0.7 -0.9 0.4

Vietnam 7.0 4.8 6.8 2.8 3.3 3.5

GDP Growth YoY (%) Inflation YoY (%)Country

Source: https://www.adb.org/publications/asian-development-outlook-2020-innovation-asia


Impact of Covid-induced disruption on PH

NEDA warns potential contraction

Source: NEDA Estimates


The severity of the pandemic crisis

requires massive fiscal response

Government Debt and COVID Fiscal Stimulus, As % of GDP (%)

Source: Moody’s, IMF

Fiscal Response in Asia

Source: IMF

Fiscal Stimulus as % of GDP

Major central banks and governments unveiled massive support measures to alleviate impact

Countries spend 10-20% of GDP to address the economic impact of COVID-19

Philippines’ fiscal stimulus is one of the lowest at 1.9% of GDP


Date Reserve Requirement Ratio

1/1/2019 18.00%

5/31/2019 17.00%

6/28/2019 16.50%

7/26/2019 16.00%

11/1/2019 15.00%

12/1/2019 14.00%

3/30/2020 12.00%

BSP purchased government securities across the curve to ensure system liquidity

8

Appropriate Monetary Policy Response

BSP cuts policy rates for the third time in 2020 to 2.75% ahead of expected sharp economic slowdown

Inflation and BSP Policy Rate

Source: CEIC

RRR cut by 200 bps to spur lending

Source: Bloomberg

Source: BSP; Announced on March 24, 2020 that the max rrr cuts for 2020 is up to 400 bps

Date Key Policy Rate

1/1/2019 4.75%

5/9/2019 4.50%

8/8/2019 4.25%

9/26/2019 4.00%

2/6/2020 3.75%

03/20/2020 3.25%

04/17/2020 2.75%

8 Source: IMF

However, aggressive PH government borrowing may exert upward pressure on rates

Ap

r-2

0


PHP depreciation likely to return in 2020

9

PH External Accounts

Oil price volatilities persistImports fell by 11.6% in February 2020

Drop in imports may be fuelling the strength of the Peso

Import Growth With Contribution Breakdown

Source: CEIC Source: Database of Federal Reserve Bank of St. Louis

Risk aversion and decline in remittances may push the exchange rate higher

PHL Current Account Balance vs. Year End USD/PHP

Source: IMF, Bloomberg

WTI Oil Prices ($ per barrel)

Exports grew by 2.8% in February 2020

Export Growth With Contribution Breakdown

Drop in imports may be fueling the strength of the Peso

Source: CEIC


75.6%79.0% 80.2% 80.0%

11.9%

9.5%11.3%

11.9%

11.6%

8.8%7.1%

8.4%

16.5% 13.7% 9.4% 10.5%0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

0.0%

10.0%

20.0%

30.0%

2017 2018 2019 Feb 2020

LDR

M3,

Lo

ans

ad D

epo

sits

Gro

wth

Banking Industry Updates

Loan growth increased to 10.5%

Deposit growth on uptrend at 8.4%, M3 as of Jan 2020 also increased to 11.9%

Industry LDR flat to year-end 2019

LDRM3Deposit Growth Loan Growth


PH Banks: Strong Capitalization

CAR and CET1 as of December 31, 2009 CAR and CET1 as of December 31, 2019

12.41%14.30% 14.7%

18.50% 18.43%

12.80%

18.47%

13.70%

8.36%10.00%

13.0%11.74%

15.40%

11.92% 12.57%10.60%

0.0%

10.0%

20.0%

30.0%

BDO MBT BPI PNB SECB CHIB RCB EW

14.2%

17.5%16.1%

14.8%

18.0%15.3%

13.7% 13.8% 13.0%

12.6%

16.2%15.2% 14.1%

17.0%

13.2% 12.8% 12.9%10.4%

0.0%

10.0%

20.0%

30.0%

BDO MBT BPI PNB SECB UBP CHIB RCB EW

10% Regulatory Minimum

CAR

CAR CET1


Regulatory Relief Measures

12

1. Monetary Policy easing

• 125 bps O/N rate cuts (25 bps, 50 bps, 50 bps)

• 200 bps RRR cut

2. Increase in SBL from 25% to 30% for 6 months

3. Financial assistance may be granted by BSFIs to their employees that are affected by the COVID-19, subject to subsequent regularization with the BSP, if necessary

4. For the BSP rediscounting facility

(i) 60-day grace period on the settlement of outstanding rediscounting obligations with the BSP, without penalty charges

(ii) restructuring of rediscounted loans of their end-user borrowers affected by the COVID-19

(iii) relaxed eligibility criteria

5. Exclusion from the past due loan ratio of loans to affected borrowers for a period of one (1) year

6. Staggered booking of allowance for credit losses over a period of 5 years subject to BSP approval

7. No penalties on legal reserve deficiencies

8. Re-classification of FVOCI and FVTPL securities to HTC

9. Mandate FIs to implement 30-day grace period on loan payments within ECQ

10. No DST on credit extension/credit restructuring

11. Forbearance on various reportorial requirements to BSP, AMLA, SEC; extension of deadlines including BIR payment

12. Inclusion of MSME loans granted after March 15 as part of reserve requirement compliance


Financial and

Operating Highlights

1Q 2020

13


Revenues

Net Int Income

Net Income

Non-Int Income

in Php billion

Operating Expenses

Compre Income

1Q 2019 4Q 2019 1Q 2020 r YOY r QoQ

Provisions

PPOP

Profitability

22.78 23.33 25.26 +10.9% +8.2%

16.05 17.28 18.14 +13.0% +5.0%

6.73 6.05 7.12 +5.8% +17.7%

12.07 12.99 12.53 +3.8% -3.5%

10.72 10.34 12.73 +18.8% +23.1%

1.80 1.25 4.23 +134.4% +238.9%

6.72 6.77 6.39 -5.0% -5.7%

8.66 5.65 2.99 -65.5% -47.1%

Q1 Net Income at 6.39B, down 5.0% vs last year, total Q1 provisions at 4.23B, 2.4x higher than last year Moderately strong Net Interest Income on higher NIMs, driven by lower funding cost Non-Interest Income lifted by higher securities trading gains Opex controlled, 3.8% higher than last year, Q1 Cost-to-Income below 50%


Higher securities trading gains

5.7 5.4 5.9 6.5 4.9 1.0 1.4 3.1 0.5 2.2

6.7 6.8 9.0

7.0 7.1

0

10

20

30

40

1Q19 2Q19 3Q19 4Q19 1Q20

5.25% 5.27% 5.19% 5.08% 5.08%

3.39% 3.34% 3.28% 3.46% 3.63%

2.09% 2.16% 2.14%1.82% 1.65%

16.1 16.3 16.3 17.3 18.1

6.7 6.8 8.8 6.1 7.1

22.8 23.1 25.1

23.3 25.3

0

10

20

30

40

1Q19 2Q19 3Q19 4Q19 1Q20

Net Interest Income up on NIM expansion Non-Interest Income up 5.8% YoY

15

Revenue Mix

+10.9%

Amounts in P bn

Non Interest IncomeNet Interest Income* Net Revenues

YoY Growth

% to Total Revenues

NIM

Asset Yield

COF

+13.0%

+5.8%

Amounts in P bn

Fees, Comms., Others Trading Income Non-Interest Income

+5.8%

YoY Growth

-12.3.%

+110%

70.5% 71.8%

+24 bps

-17 bps

-44 bps

*Includes DST; Net of GRT


4.1 4.5 4.3 4.6 4.6

3.7 4.1 4.4 4.3 4.2 2.0 2.0 2.4 2.2 2.0 2.3 1.6 1.7 1.9 1.7 12.1 12.2 12.8 13.0 12.5

53.0% 52.8%

51.0%

55.7%

49.6%

-

5.0

10.0

15.0

20.0

25.0

30.0

1Q19 2Q19 3Q19 4Q19 1Q20

16

Manpower

Others

Premises*

CIR

Technology

Total Opex

+3.8%

+12.8%

+14.7%

-24.7%

-1.8%

YoY Growth

Operational Efficiency

Amounts in P bn

Cost-to-Income lower at 49.6% Accelerating shift to Digital

New Online Users(Daily Enrolments)

Weekly Online Transactions

Interbank Transactions

During ECQ: ~4,000 Pre-ECQ: ~1,000-2,000

Growth in Volume: 20% Online Transactions: over 30%

Growth in Volume: 60%Growth in Value: over 50%


Total Assets

Deposits

Net Loans

AUM

in Php billion

Gross Loans

LDR

CASA Ratio

Equity - BPI

Balance Sheet

1Q 2019 4Q 2019 1Q 2020 r YOY r QoQ

2,085 2,205 2,192 +5.2% -0.6%

1,364 1,492 1,469 +7.7% -1.5%

1,349 1,475 1,448 +7.3% -1.9%

1,608 1,695 1,677 +4.3% -1.1%

257 270 273 +6.2% +1.3%

742 832 842 +13.6% +1.2%

83.88% 87.02% 86.32% +2.4 ppt -0.7 ppt

70.35% 69.08% 73.50% +3.2 ppt +4.4 ppt


1,608 1,658 1,620 1,695 1,677

1,824 1,872 1,855 1,932 1,916

139 137 155 151 145

88.2% 88.6% 87.3% 87.8% 87.6%

0

500

1,000

1,500

2,000

2,500

1Q19 2Q19 3Q19 4Q19 1Q20

1,131 1,133 1,120 1,171 1,233

477 526 500 524 444

1,608 1,658 1,620 1,695 1,677

70.3% 68.3% 69.1% 69.1%73.5%

0

500

1,000

1,500

2,000

2,500

1Q19 2Q19 3Q19 4Q19 1Q20

Amount Raised: PHP 15.3 billion Tenor: 2 years Issue Price: 4.2423% p.a., payable

quarterly

1

18

+9.0%

-6.8%

CASA Time Total Deposits

CASA deposits up, +9% YoY and +5% QoQ Customer deposits account for almost 90% of total funding, Borrowings up 4% YoY

Quarterly deposit volume and CASA Ratio(2018-2019, in P bn and %)

YoY Growth

+4.3%

Deposits and Liquidity

Peso Bond Issuances contribute to overall liquidity

Amount Raised: PHP 33.9 billion Tenor: 1.5 years Issue Price: 4.05% p.a., payable

quarterly

March 27, 2020 IssuanceJanuary 13, 2020 Issuance2018 2019 1Q201

LCR 160.92% 167.06% 189.77%

NSFR 141.99% 130.74% 153.57%

LCR and NSFR both above 100%

Amounts in P bn

Deposits Deposits/Total LiabilitiesTotal Liabilities Borrowings

1 Indicative


1,349 1,354 1,3721,475 1,448

83.9% 81.7% 84.7% 87.0% 86.3%

500

1,000

1,500

2,000

1Q19 2Q19 3Q19 4Q19 1Q20

2017 2018 2019 1Q20

Corporate 78.9% 77.0% 76.1% 75.9%

SME/Consumer 21.1% 23.0% 23.6% 23.8%

SME 2.5% 4.6% 4.4% 4.6%

Consumer 18.5% 18.4% 19.2% 19.1%

Microfinance 0.0% 0.2% 0.3% 0.3%

19

Loan Growth

Strategic shift in Loan MixLoan volume up 7% YoY, down 2% QoQ

YoY Growth

+7.3%

Quarterly loan volume and LDRs(2018-2019, in P bn and %)


SME outpaced Corporate loans

1,050.71,140.0 1,121.0

1Q19 4Q19 1Q20

+6.7%

Volume

Asset Yield

YoY Growth

QoQ Growth -1.7%

5.63 5.34 4.84 7.15 7.16 7.17

59.5 66.5 68.0

1Q19 4Q19 1Q20

+14.2%

+2.3%

Corporate Loans

Volume

Asset Yield

YoY Growth

QoQ Growth

Amounts in P bn Amounts in P bn

SME Loans


7.54 7.57 7.83 9.67 9.35 9.42

136.9148.6 145.7

1Q19 4Q19 1Q20

54.9 57.8 56.9

1Q19 4Q19 1Q20

21

Mortgage and Auto loans steady

Auto (in P bn)Mortgage (in P bn)

Volume

Asset Yield

YoY Growth

QoQ Growth

+3.6%

-1.7%

+6.4%

-2.0%


4.56.2 6.2

1Q19 4Q19 1Q20

23.36 24.20 23.5119.22 19.08 19.1

61.775.2 73.8

1Q19 4Q19 1Q20

48.9 47.60 46.23

2.74.3 4.4

1Q19 4Q19 1Q20

22

Strong growth in Microfinance and

Credit Card loans

Credit Cards (in P bn)

Microfinance (in P bn)

+66.6%

+4.3%

+19.6%

-1.9%

Personal Loans (in P bn)

Volume

Asset Yield

YoY Growth

QoQ Growth +36.5%

-0.3%


25.2 25.5 25.1 24.8 26.7

92.6%97.5% 99.3% 102.1%

109.0%95.7%

100.7% 102.7% 104.8%

0

10

20

30

40

50

1Q19 2Q19 3Q19 4Q19 1Q20

1.85% 1.86%1.81%

1.66%

1.82%

NPL Level(in P bn)

Asset Quality

1 Loss cover includes reserves for contingent exposures 2 NPL cover excludes reserves for contingent exposures3 Industry NPL Cover as of Feb 2020

23

NPLCover2

NPL Ratio Loss Cover1

Higher NPL at 1.82%

92.6% 97.5% 99.3% 102.1%

109.0%95.7% 100.7% 102.7% 104.8%

95.7% 93.3% 91.9% 92.6% 90.9%

30.0%

50.0%

70.0%

90.0%

110.0%

130.0%

1Q19 2Q19 3Q19 4Q19 1Q20

NPL Cover increased to 109%

Industry - NPL Cover3Loss Cover1 NPL Cover2


10.66% 10.71%11.26% 10.97%

9.38%

9.64% 9.84%10.27% 10.52%

Consistent dividend payments

1.34% 1.34% 1.42% 1.38%1.21%

1.17% 1.24% 1.30% 1.31%

0.00%0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

1Q19 2Q19 3Q19 4Q19 1Q20

8.1 8.2 7.9 8.2 8.0

0.0

4.0

8.0

12.0

16.0

1Q19 2Q19 3Q19 2019 1Q 2020

16.57% 16.44% 16.91% 16.07% 16.08%

15.68% 15.55% 16.01% 15.17% 15.19%

0.0%

10.0%

20.0%

30.0%

1Q19 2Q19 3Q19 4Q19 1Q20

6,402 7,077 7,078 7,086 7,089 7,598 8,108

18,811 18,039 18,23422,050 22,416 23,078

28,803

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2013 2014 2015 2016 2017 2018 2019

Strong capital position

24

3

10% Regulatory Minimum

CAR

Capital and Earnings

CAR CET1

Assets/Equity (in x)

BPI - ROA Industry - ROA BPI - ROE Industry - ROE

Financial leverage maintained

Above industry profitability metrics

YTDfigures

Net Profit to shareholders (in P mn)Dividends (in P mn) Payout ratio

34.0%

39.2% 38.8%

32.1% 31.6% 32.9%

28.2%

1

1 Indicative


Sufficient loss-absorption buffer for potential adverse scenario

HQLA is 1.2x times the undrawn committed lines

Breakdown of Undrawn Corporate Credit Lines Dec 2019Gross Carrying Amounts – P 405 billionLoss Allowance – P (0.65) billion

Undrawn Committed Lines

1x

MarketCapitalization

Php279bn

Loss-absorbingcapital

Php275bn

AssetsPhp2.205tn Market

CapitalizationPhp396bn

Loss-absorbingcapital

Php270bn

2019 1Q 2020

AssetsPhp2.195tn

HQLA

Undrawn Credit Lines

HQLA1.2x

404

474

0

200

400

600

800

2019

PH

P B

illio

ns

Liquidity source enough to cover undrawn corporate credit lines

BPI has substantial capital buffer

and liquidity


Financial Summary – 1Q 2020

Operations & Profitability FY 2018 FY 2019 1Q 2020

Total Assets P 2.1 tn P 2.2 tn P 2.2 tn

Total Loans P 1.3 tn P 1.5 tn P 1.4 tn

Total Deposits P 1.6 tn P 1.7 tn P 1.7 tn

Net Income P 23.1 bn P 28.8 bn P 6.4 bn

NIM 3.11% 3.35% 3.63%

CIR 55.53% 53.08% 49.58%

ROE 10.21% 11.97% 9.38%

ROA 1.20% 1.38% 1.21%

Headcount 18,911 21,429 21,010

Branches 1,056 1,167 1,159


Investor

Presentation

1Q 2020

Q&A


Appendices

28


Macroeconomic & Industry Indicators

Source: Bangko Sentral ng Pilipinas & Philippine Statistics Office1 as of February 20202 Customer Loans (Loans and Receivables, net of Allowance for Credit Losses)

2013 2014 2015 2016 2017 2018 2019 1Q 2020

GDP Growth 7.2% 6.1% 5.8% 6.8% 6.7% 6.2% 5.9%

Current Account (% to GDP) 4.2 3.8 2.5 -0.4 -0.7 -2.7 -0.1

Inflation 2.6% 3.6% 0.7% 1.3% 2.9% 5.2% 2.5% 2.5%

M31 31.8% 11.2% 9.4% 12.8% 11.9% 9.5% 11.3% 11.9%

90D T-bill - quarter 0.00% 1.286 1.7% 1.44 2.0% 5.1% 3.1% 3.2%

Overnight RRP 3.5% 4.0% 4.0% 3.0% 3.0% 4.75% 4.0% 3.3%

BVAL - 3 months 0.330 2.380 2.670 2.080 2.430 5.776 3.204 3.290

BVAL - 10 years 3.600 3.860 4.100 4.630 5.700 7.065 4.461 4.872

Industry (in P bn except ratios) 2013 2014 2015 2016 2017 2018 2019 1Q 2020

Customer Loans 1,2 4,896.95 5,832.38 6,527.27 7,612.12 8,865.60 9,215.26 10,082.25 10,024.59

Deposits1 7,608.87 8,524.55 9,231.34 10,506.56 11,726.97 12,764.13 13,669.47 13,639.55

Loan Growth 15.8% 19.1% 11.9% 16.6% 16.5% 13.7% 9.4% 10.5%

Deposits Growth 32.2% 12.0% 8.3% 13.8% 11.6% 8.8% 7.1% 8.4%


Bank of Philippine Islands Overview

The first bank in the Philippines and Southeast Asia, and the longest tenured bank with almost 170 years of continuous operating history, with highly reputable shareholders, the largest of which include the Ayala Group, the Roman Catholic Church and GIC

Award winning, universal banking franchise licensed by the Bangko Sentral ng Pilipinas, offering a broad range of financialsolutions catering to both retail and corporate clients

BPI has a local distribution network of 1,159 branches & BLUs, 3 international offices, and a manpower complement of 21,010 employees as of March 2020

Customer base has almost doubled since 2010 to 8.8 million customers in January 2020 owing to the Bank’s strong brand recognition

Retail Banking

Corporate Banking

Small and Medium SizedEnterprises (“SMEs”) Business

Banking Group

Responsible for the Bank’s distribution network of 1,169 branches & BLUs and 2,779 ATMs & CAMsProvides private banking, preferred banking, personal banking and overseas Filipino banking services

Provides deposit and lending solutions to a broad range of multinationals, large and medium domesticconglomeratesProducts and services offered include cash management, electronic payments, trade finance, investmentbanking and other solutions

Other key segments

Focused on the needs of the small and medium sized enterprise segmentTailored credit processes and credit-scoring models offer quick and efficient capital solutions to SME clients

Asset management and trust business operated through BPI Asset Management and Trust CorporationInsurance services provided through BPLAC and BPI/MS1

Leasing and rental services through BPI Century Tokyo

1 BPLAC is the Bank’s life insurance joint venture with Philippine American Life and General Insurance Company. BPI/MS is the Bank’s non-life insurance joint venture with Mitsui Sumitomo Insurance Group (“Mitsui”)

Main Operating Business Segments

MicrofinanceProvides services to self-employed micro-entrepreneurs, advice from BanKopares & BanKomares Quick turnaround times and lower interest rates vs traditional money-lenders

BPI at a glanceBalance Sheet 2014 2019 5yr CAGR 1Q 2020 YoY

Total assets 1,450.2 2,205.0 8.7% 2,192.1 5.2%

Net loans 800.2 1,475.3 13.0% 1,447.9 7.3%

Deposits 1,176.2 1,695.3 7.6% 1,677.3 4.3%

CASA 816.1 1,171.2 7.5% 1,232.8 9.0%

Capital 144.1 269.6 13.4% 273.1 6.2%

Income Statement

Revenues 55.8 94.3 11.1% 25.3 10.9%

Net interest income 34.8 65.9 13.6% 18.1 13.0%

Non Interest Income 21.0 28.4 6.2% 7.1 5.8%

Operating expense 30.0 50.1 10.8% 12.5 3.8%

Pre-provision

Operating Profit 25.8 44.3 11.4% 12.7 18.8%

Net Income 18.0 28.8 9.8% 6.4 -5.0%

Key ratios

NIM 3.03% 3.35% 3.63%

Asset Yield 3.67% 5.16% 5.08%

Cost of Deposits 1.06% 1.54% 1.21%

Cost of Funds 1.07% 2.04% 1.65%

Cost to Assets 2.39% 2.40% 2.40%

Cost to Income 53.70% 53.08% 49.60%

ROE 13.75% 10.97% 9.38%

ROA 1.44% 1.38% 1.21%

CASA Ratio 69.39% 69.08% 73.50%

Loan-to-Deposit 68.03% 87.02% 86.32%

Credit Cost (in bps ) 42bps 43bps 46bps

NPL ratio 1.51% 1.66% 1.77%

NPL coverage ratio 108.90% 102.14% 109.02%

CAR 14.85% 16.07% 16.08%

CET1 13.97% 15.17% 15.19%


S&P rates BPI equivalent to

Sovereign

31

Entity

Republic of the Philippines BBB+ Baa2 BBB -

Development Bank of the Philippines BBB+ - BBB -

Land Bank of the Philippines - Baa2 BBB -

Bank of the Philippine Islands BBB+ Baa2 BBB- BBB

BDO Unibank Inc. - Baa2 BBB- -

Metropolitan Bank & Trust Co. - Baa2 BBB- BBB

Philippine National Bank - Baa2 BB+ -

Rizal Commercial Banking Corporation - Baa2 BBB- -

China Banking Corporation - Baa2 BBB- -

Security Bank BBB- Baa2 - -

Union Bank of the Philippines - Baa2 - -

- Not Rated

Source: Mizuho Banks materials, Credit Ratings agencies press releases as of March 2020


Various, 5.0%

RCAM1, 7.3%

Ayala Corp2, 48.5%

Public Float,39.2%

Shareholders

As of March 31, 2020

1 Roman Catholic Archdiocese of Manila2 Includes share in Liontide Holdings Inc.

Fundamentals Description

Stock Price P61.80 per share

BV per share P60.42

P-B Ratio 1.0x

P-E Ratio 9.7x

Dividends P1.80 per share

Market Cap P278.91 bn

Trading Fact Sheet Description

Type Common

Stock Ticker BPI

ISIN PHY0967S1694

Exchange Philippine Stock Exchange

Par Value 10.00

Outstanding Shares 4,513,100,378

Foreign Ownership 30.9%

Shareholders & Equity Profile


BPI Management Team

Cezar "Bong" Consing

President &CEO

23 years with BPI

• Elected President and CEO since 2013

• Director of BPI from 1995-2000, 2004-2007 and 2010-present

• Former Head of Investment Banking, J.P. Morgan Asia Pacific

• Currently also serving on the boards of various subsidiaries of BPI

MonJocson

EVP & COO

4 years with BPI

• Chief Operating Officer since January 2019, and Head of Enterprise Services

• Formerly Vice President & General Manager of IBM Global Services and Managing Director of IBM Philippines

• Served on the Economic Development Board of Singapore

• Vice-Chairman, CyberSecurity Committee of the Bankers Association of the Philippines

Tere Marcial Javier

EVP & CFO

• Chief Finance Officer and Head of Strategy and Finance since April 2017

• 25 years of banking experience

• Serving on the Board of BPI Europe, PLC., BPI MS, BPI Global Payments, BPI Payment Holdings

• Previously served on the BPI Trust Committee and Board of BPI Investment Management, Inc.

• Previously held senior positions in Corporate Banking and Asset Management & Trust

25 years with BPI

John-CSyquia

EVP

4 years with BPI

• Head of Corporate Banking since January 2018

• Former President of BPI Capital Corp.

• Over 29 years of experience in financial services

• Previously ,Country Head of Corporate Clients for Standard Chartered Bank, Head of Corporate Finance at ING Bank Manila, and Head of Strategy and Business Development at ING Asia Pacific Ltd

JojoOcampo

EVP

24 years with BPI

• Head of Mass Retail, Former Chief Marketing Officer

• Serving on the Boards of BPI Payment Holdings Inc, BPI Global Payments, BPI Direct BanKo, AF Payments Inc, and Zalora


• Previously held several positions in Unsecured Lending Cards, Payments, Remittances, Deposits, Kiosk Banking & Customer Segments

As of January 31, 2020


BPI Management Team

As of January 31, 2020

Dino GasmenSVP &Treasurer

6 years with BPI

• Assumed position of Treasurer and Head of the BPI's Global Markets in January 2020


• Chairman of BPI's Asset & Liability Committee

• 17 years in HSBC Manila with stints in the UK, Indonesia, and Vietnam

Eric LuchangcoSVP

6 years with BPI

• Head of Business Banking since June 2019

• Previously headed Corporate Credit Products Group, was head of Debt Capital Markets for BPI Capital and served on the Board of BPI Securities

• 23 years of experience in financial services

• Previously worked with Daiwa Capital Markets

GinbeeGoBFB President

16 years with BPI

• President of BPI Family Savings Bank since June 2017


• Previously served as SVP of Retail Loans Group and Card Banking Group

• Director of Transunion Phils & Chairman of BPI Payment Holdings, Inc.

• Secretary & Trustee of Chamber of Thrift Banks

An-an KingSVP

34 years with BPI

• Head of Branch Sales and Service Channels since October 2018

• Served as BFB Director (2015-2017), Chairman of BPI Remittance Centre (HK) Ltc. (2016-2018)


• Chair, Unibank WoW Committee and Excellence Retail Awards Committee

Cathy SantamariaSVP & CMO

8 years with BPI

• Chief Marketing Officer since November 2018

• Over 31 years of marketing experience

• Previously segment head of Globe Telecom Touch Mobile and Mobile Business

• Former Marketing Director, Kraft Food Philippines; Kraft Foods International Head of Business Development and General Manager

• Vice President, Bank Marketing Association of the Philippines (2018)

Jovi AlonsoSVP & CCO

23 years with BPI

• Chief Credit Officer since January 2017

• Previously involved in Corporate Relationship Management Asian Corporations and PEZA Divisions

• Serving on the Boards of BPI Century Tokyo Lease & Rental Corps


• Formerly Japan Desk Head in the World Corporation Group of Citibank, N.A. Manila Branch

Sheila TanAMTC President

6 years with BPI

• 3 years with BPI Asset Management and Trust Corp; Chief Operating Officer (2017-2018)

• Previously headed Strategic Advisory at BPI Capital (2013-2017)

• In the practice of law for more than 25 years

• Former Co-Managing Director of Ayala Group Legal and Chief Legal Counsel of Ayala Land, Inc

Mayette GayaresSVP &CRO

35 years with BPI

• Chief Risk Officer since January 2018, Former Chief Compliance Officer (2012-2017)


• Member, Risk Management Committee of the Bankers Association of the Philippines

• Previously served as Director and Treasurer of ABCOMP, Voting Member of the Bankers Institute of the Philippines


Bank Standalone

Rating

Extraordinary

Support Level

Operating

Environment Risk

Anchor

BBB- bbb-

SACP: Risk Position Adequate (0)

Senior Unsecured Baa2Support Rating

Floor

SACP: Funding &

Liquidity

Average and

Strong (0)

Moody's 2

Counterparty Risk

Rating

Bank Deposits

Counterparty Risk

Assessment

Foreign Currency:

Short-Term IDR

Support Rating

Outlook

Long-Term Issuer

Credit Rating

Short-Term Issuer

Credit Rating

SACP*

SACP: Business

Position

Capital

Intelligence 4

Stable***

bbb

BBB

S&P 1

Outlook

Financial Strength

Foreign Currency:

Long-Term IDR**

Stable

Fitch 3

Outlook

Core Financial

Strength

Long-Term

Foreign Currency

Baseline Credit

Assessment

Baa2/P-2

Baa1/P-2

Outlook

A3F3Short-Term

Foreign Currency

High

Stable

BBB+

A-2

bbb+

Strong (+1)

bbb-Adj. Baseline

Credit Assessmentbaa2

Local Currency:

Long-Term IDRBBB-

baa2

Baa1(cr)/P-2(cr)

Stable

-

BBB-

2

bbb-

Strong (+1)

SACP: Anchor

SACP: Capital &

Earnings

At par with Philippine Sovereign Rating (Moody’s, Capital Intelligence, and S&P)

35

BBB ESG RatingSustainable development goals touched on by BPI:

/1 As of August 2019 /2 As of May 2019 /3 As of January 2019 /4 As of October 2019 /5 As of August 2019* Stand Alone Credit Profile (SACP)** Issuer Default Ratings*** Outlook for Long-term Foreign Currency Rating & Bank Standalone Rating

5

Credit and Sustainability Ratings

THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS. STRICTLY CONFIDENTIAL.36 BPI’s Green Bond Framework is aligned with leading industry practices and supports our long-term environmental and social commitments

We have developed a Green Finance Framework under which we intend to issue:

Green Bonds and/or Loans – proceeds allocated to selected Eligible Green Projects

The Framework has been established to continue our thrust to promote positive environmental and social practices in our core markets

PROJECT EVALUATION AND SELECTION

We will follow the guidelines below in evaluating and selecting the Eligible Green Projects:

Pre Qualification: Projects are identified, evaluated and nominated by BPI’s Sustainable Energy Finance and Specialized Lending Team(together “SEF/SLT”)

Inclusion in the Green Finance Portfolio: SEF/SLT Head / Vice Chairman of the Green Finance Committee (“GFC”) validates and signs off on the Eligible Green Projects list

Green Finance Committee: On a semi-annual basis, validate and approve historical enrolments, review monitoring and reporting of issued Green Bonds and deployment of net proceeds

BPI ensures that all loans included for allocation under the Green Finance Portfolio comply with national, local, and environmental laws at the time of issuance

REPORTING

We will provide annual progress reports to be reviewed and approved by the Green Finance Committee andSenior Management, covering:

A list of approved Eligible Green Projects, including amounts allocated; and

Remaining balance of unallocated proceeds

External auditor will be engaged to provide independent verification on our reporting and management of proceeds in accordance with this Framework

Impact Reporting will be completed where relevant and possible

USE OF PROCEEDS

Net proceeds will be allocated to Eligible Green Projects in the following categories:

Renewable Energy

Energy Efficiency

Sustainable Water & Wastewater Management

Pollution Prevention & Control

Green Buildings

Projects financed or refinanced may be at BPI or at any of the BPI Group entities

Net proceeds of any BPI Green Bond and/or Loan will not be used towards financing and/or refinancing of fossil fuel related assets and activities

2

4MANAGEMENT OF PROCEEDS

An amount equal to the proceeds will be allocated to finance designated Eligible Green Projects across the BPI Group

Internal systems in place governing:

Tracking of proceeds via a separate register

Policy for deployment of unallocated proceeds

Substitution of assets – an amount equal to the net proceeds will be allocated to projects that comply with the Eligibility Criteria, reallocating to replacement projects in the event that a previous project is sold, paid in full, or no longer eligible

1

3

Green Finance Framework


37

As of March 31, 2020

2020 Citations

Best Trade Finance

Provided2020

11Best Asset Manager2020

WWF Climate Support

Award (Phils)

2020

BPI Foundation

WWF Sustainability

Trailblazer Award (Phils)

2020

Outstanding Achievement

in Advocacy Marketing

2019

BPI-Philam Life Assurance

Corp.

Best Life Insurance

Company in the Phils.

2019

Institutional Bancassurance


For your comments and queries contact us via:

[email protected]

Tel: (632) 8246 5862

DISCLAIMER: This presentation has been prepared by the Bank of the Philippine Islands (“BPI” or the “Company”) solely forinformational purposes. All contents hereof are the sole and exclusive property of BPI. Nothing in this presentation shall beconsidered a solicitation, offer, advice or recommendation to investors or potential investors in relation to holding, purchasing orselling securities or other financial products or instruments. In all cases, interested parties should conduct their own investigationand analysis of the Company and the data set forth in this presentation. BPI makes no representation or warranty as to theaccuracy or completeness of information in this presentation and shall not have any liability for any representations (expressed orimplied) regarding information contained in, or for any inaccuracies or errors in, or omissions from, this presentation.This presentation may contain forward looking statements including statements regarding the Company’s intent, belief or currentexpectations with respect to BPI’s [businesses and operations, market conditions, results of operation and financial condition,capital adequacy, specific provisions and risk management practices]. Readers are cautioned not to place undue reliance on theseforward looking statements. BPI does not undertake any obligation to publicly release the result of occurrence of unanticipatedevents. While due care has been used in the preparation of forecast information, actual results may vary in a materially positive ornegative manner. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside BPI’s control.

38

Documents

Investor Presentation...No DST on credit extension/credit restructuring 11. Forbearance on various reportorial requirements to BSP, AMLA, SEC; extension of deadlines including BIR