BPI profile

SWOT ANALYSIS/ENVIRONMENTAL

ANALYSISBank of the Philippine

Island

What is Bank of the Philippine Island?

(Spanish: Banco de las Islas Filipinas, commonly known as BPI; PSE: BPI) is the oldest bank in the Philippines still in operation and is the country's third largest bank in terms of assets, the country's largest bank in terms of market capitalization, and the country's most profitable bank. It is owned by the Ayala Corporation - the largest conglomerate in the Philippines, and is based in Makati City's Central Business District, on the corner of Ayala Avenue and Paseo de Roxas.

Through the years, BPI strove to deliver the highest standards of convenience banking through the ingenuity of technology and creative management. As the recognized "most technologically advanced bank", BPI introduced the first successful automated teller machine (ATM) service in the Philippines. Among BPI's other firsts are: the issuance of the first debit card, the introduction of cashless shopping with the Express Teller Card, the establishment of banking kiosks, the Express Banking Centers, the launching of telephone banking with the Express Phone, and the use of a Call Center. BPI has distinguished itself by catering to the ever-evolving needs and lifestyles of the public.

Company Perspective

Key dates:

1828: King Ferdinand VII of Spain issues a decree authorizing the formation of Bank in the Philippines.

1851: El Banco Español Filipino de Isabel 2 is established. 1898: The bank becomes a Filipino institution after

United States takes over the Philippines from Spain. 1912: The bank changes its name to Bank of the

Philippine Islands (BPI). 1969: Ayala Corporation acquires control of BPI. 1974: BPI acquires Peoples Bank and Trust Company.

Company History

1980: The bank begins leasing operations. 1981: Commercial Bank and Trust Company is acquired, and the first ATMs are introduced. 1982: The company converts to expanded commercial bank status. 1995: First Cavite Savings is acquired. 1999: Far East Bank and Trust Company is acquired. 2000: BPI Direct internet banking service is launched, and Ayala insurance companies are acquired. 2002: DBS Bank Philippines is acquired. 2003: The company spins off re-insurance operations into Universal Malayan Reinsurance Corporation.

Logo:

More Logos:

BPI Headquarter at Ayala Avenue, Paseo De Roxas Makati City, Philippines

Subsidiaries and Affiliates

1851 Club Inc.; AF Holdings & Mgt. Corp.; AF Merchants Inc.; AF Money Brokers Inc.; Ayala Life Assurance Inc.; Ayala Plans Inc.; BPI Bancassurance Inc.; BPI Capital Corp.; BPI Computer Systems Corp.; BPI Direct Savings Bank Inc.; BPI Family Savings Bank; BPI Forex; Corp.; BPI Foundation, Inc.; BPI International Finance Ltd.; BPI Investment Mgt. Inc.; BPI Leasing Corp.; BPI Operations Mgt. Corp.; BPI Paseo de Roxas Condominium; BPI Rental Corp.; BPI Securities Corp.; BPI/MS Insurance Corp.; CityTrust Realty Corp.; CityTrust Securities Corp.; Far East Bank Speed; FCP Credit Corp.; FEB Insurance Brokers, Inc.; FEB Management, Inc.; FEB Savings Bank; FEB Stock Brokers Inc.; Filinvest Algo Financial Corp.; First FarEast Development Corp.; Greentop Condominium Corp.; Santiago Land & Dev't Corp.; Shenton Corp.; Zodiac Realty Corp.

Ownership

• PCD Nominee Corporation: 35.55% (30.17% Filipino, 5.38% non-Filipino)

• Ayala Corporation: 23.28%• Ayala DBS Holdings¹: 21.43%• Roman Catholic Archdiocese of Manila²: 8.51%• BPI directors and officers: 0.08%• Public stock: 11.15%

Principal Competitors

Citibank; Metropolitan Bank and Trust Co.; Equitable-PCI Bank; Land Bank of the Philippines; Philippine National Bank; Rizal Commercial Banking Corporation; Development Bank of the Philippines; Allied Banking Corporation; United Coconut Planters Bank; China Banking Corporation; Union Bank of the Philippines.

Strengths

Conservative Innovative Products Adequate Capital Low cost deposits Nationwide branch network Long banking history and tradition Competent Management Strong Owners (Ayalas) Ties with Ayala group of companies

BPI Products and Services

• Deposits• Deposit Substitutes• Loans• International Banking (Hong Kong)• Payments & Settlement Services• Asset Management & Trust• Investment Banking• Dealership & Brokerage• Insurance Services• Ancillary Services

Board of Directors

Chairman: Jaime Augusto Zobel De Ayala II President: Aurelio R. Montinola III Directors: Fernando Zobel de Ayala, Gerardo C.

Ablaza Jr., Emily A. Abrera, Lilia R. Bautista, Romeo L. Bernardo, Chng Sok Hui, Octavio V. Espiritu, Rebecca G. Fernando, Xavier P. Loinaz, Ma Yuen Lin, Annie Mercedita S. Nolledo, Oscar S. Reyes, Wong Ann Chai.

Weaknesses

Low deposit ratesLong product cycle

Opportunities

Include young populationGrowing economyNew alternative channelsOFW’s

Threats

Competition from other banks

Regulation

Title

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