BDO Unibank: Q2/H1 results

8/12/2019 BDO Unibank: Q2/H1 results

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3 4 0 0 1

B D O U N I B A N K , I N C .

B D O C O R P O R A T E C E N T E R , 7 8 9 9

M A K A T I A V E N U E , M A K A T I C I T Y

0 6 3 0 S E C 1 7 - Q

C F DDept. Requiring this Doc.

Total No.of Stockholders Domestic Foreign

Amended Articles Number/Section

12,983 Total Amount of Borrowings

COVER SHEET

S.E.C. Registration Number

(COMPANY'S FULL NAME)

(BUSINESS ADDRESS: NO. STREET CITY/TOWN/PROVINCE)

Annual Meeting

Secondary License type, if applicable

RUBY A. CRUZ 856-7434/840-7000 loc 4575Contact Person Company Telephone Number

Every last Friday of the month of MayMonth Day Form Type


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b l h d b l d

1. For the quarter ended June 30, 2014.

2. Commission identification number 34001 3. BIR Tax Identification No. 000-708-174-000

BDO UNIBANK, INC.

4. Exact name of issuer as specified in its charter

Makati City, Philippines5. Province, country or other jurisdiction of incorporation or organization

6. Industry Classification Code (For SEC Use Only)

BDO Corporate Center, 7899 Makati Avenue, Makati City7. Address of issuer's principal office Postal Code

856-7434/840-7000 LOC 4575

8. Issuer's Telephone number, including area code

NA

9. Former name, former address and former fiscal year, if changed since last report

10. Securities registered pursuant to Section 8 and 12 of the Code of Section 4 and 8of the RSA

Number of shares of Amount of Title of each class common stock outstanding Debt Outstanding

QUARTERLY REPORT PURSUANT TO SECTION 17 OF THE SECURITIESREGULATION CODE AND BRC RULES 17 (2) (b) THEREUNDER

SECURITIES AND EXCHANGE COMMISSION

SEC FORM 17-Q


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17-Q

I hereby certify that all the information set forth in the above report are true and correct

nowledge.

OF THE PHILIPPINES } KATI } S.S.

SUBSCRIBED AND SWORN TO before me this ___________

___________ day of August,

ove affiant exhibiting to me his/her described Competent Evidence of Identity (CEI):

Name

Lucy Co Dy Passport - EB1933736 02.17.2011/Manila

Notary Public

CTC 02254646 02.10.2014/Makati City

LUCY CO DY (EVP Comptroller) Authorized Signatory

(PRINTED NAME & DESIGNATION)

CEI Date & Place Issued


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quirements of the Securities Regulation Code, the issuer has duly caused this reportbehalf by the undersigned thereunto duly authorized.

........................................................................................ BDO UNIBANK, INC.

................................................................................. LUCY CO DYEVP/COMPTROLLER

..................................................................................... August 4, 2014

l /Accountingr................................................................................ LUCY CO DY

.................................................................................EVP/COMPTROLLER

.................................................................................... August 4, 2014

ned


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Audited As of As of June 30, 2014 December 31, 2013

CASH AND OTHER CASH ITEMS P 22,617 P 27,824DUE FROM BANGKO SENTRAL NG PILIPINAS 343,266 408,383DUE FROM OTHER BANKS 32,866 26,939INVESTMENT SECURITIES

At Fair Value Through Profit or Loss 9,066 9,748 Available-for-Sale net 184,670 218,162

LOANS AND OTHER RECEIVABLES net 1,030,827 922,553BANK PREMISES, FURNITURE, FIXTURES AND EQUIPMENT net 19,125 17,908INVESTMENT PROPERTIES 10,083 10,381EQUITY INVESTMENTS net 5,161 4,839DEFERRED TAX ASSETS 5,861 5,941OTHER RESOURCES - net 20,967 20,100

TOTAL RESOURCES P 1,684,509 P 1,672,778

DEPOSIT LIABILITIES P PDemand 85,773 79,601Savings 771,133 695,243Time 509,011 570,489 Total Deposit Liabilities 1,365,917 1,345,333

BILLS PAYABLE 86,266 94,243SUBORDINATED NOTES PAYABLE 0 3,007OTHER LIABILITIES 63,649 65,841

Total Liabilities 1,515,832 1,508,424

EQUITY

Attributable to Shareholders of the Parent Company 168,078 163,711Minority Interest 599 643

Total Equity 168,677 164,354

(Amounts in Millions of Pesos)

RESOURCES

LIABILITIES AND CAPITAL FUNDS

BDO UNIBANK, INC. & SUBSIDIARIESBDO Corporate Center, 7899 Makati Avenue, Makati City

CONDENSED STATEMENTS OF FINANCIAL POSITION


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For the six-month For the six-month For the For thePeriod ended Period ended Quarter ending Quarter endingJune 30, 2014 June 30, 2013 June 30, 2014 June 30, 2013

INTEREST INCOME ONLoans and Receivables P 25,374 P 21,904 P 13,050 P 11,100Investment Securities 3,759 4,714 1,761 2,214Due from Other Banks 1,396 294 594 177Others 112 79 57 37

Total Interest Income 30,641 26,991 15,462 13,528

INTEREST EXPENSE ONDeposit liabilities 5,010 5,317 2,513 2,369Bills Payable and Others 954 1,811 457 858

Total Interest Expense 5,964 7,128 2,970 3,227

NET INTEREST INCOME 24,677 19,863 12,492 10,301

IMPAIRMENT LOSSES 2,553 4,001 1,260 2,125

NET INTEREST INCOME AFTER IMPAIRMENT LOSSES 22,124 15,862 11,232 8,176

OTHER OPERATING INCOMEService Charges, Fees and Commissions 7,078 6,533 3,780 3,712Trading Gain net 4,006 8,803 2,317 (400)Trust Fees 1,260 1,186 641 629Foreign Exchange Gain/(Loss) net 177 2,160 (308) 2,167Miscellaneous net 1,764 1,602 829 882

Total Other Operating Income 14,285 20,284 7,259 6,990

OTHER OPERATING EXPENSESEmployee Benefits 8,238 7,644 4,856 4,495Occupancy 2,710 2,381 1,393 1,185Taxes and licenses 2,665 2,298 1,334 1,038Security, Clerical, Messengerial and Janitorial 1,182 1,124 608 570

Insurance 1,353 961 680 481 Advertising 1,377 1,261 681 631Litigation/Assets Acquired 286 367 143 187Miscellaneous 6,424 5,053 2,640 1,990


CONDENSED STATEMENTS OF INCOME(Amounts in Millions of Pesos Except Per Share Data)


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For the six-monthperiod endingJune 30, 2014

For the six-monthperiod endingJune 30, 2013

NET PROFIT 11,055 14,172

OTHER COMPREHENSIVE INCOME(LOSS)

Net unrealized fair value gains(losses)on available-for-sale securities 1,198 (4,081)

Translation adjustment related to foreign operations (26) 376

Other Comprehensive Income, net of tax 1,172 (3,705)

Items that will not be reclassified to profit or loss: Actuarial gains (losses) on remeasurement of retirement

benefit asset, net of tax (1) 0(1) 0

Total Other Comprehensive Income, Net of Tax 1,171 (3,705)

TOTAL COMPREHENSIVE INCOME(LOSS) 12,226 10,467

Attributable To:Shareholders of the Parent Bank 12,226 10,430Non-controlling Interest 0 37

12,226 10,467


STATEMENTS OF COMPREHENSIVE INCOME(Amounts in Millions of Pesos)


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2014 2013

CASH FLOWS FROM OPERATING ACTIVITIESProfit before tax 12,174 15,057

Adjustments for:Interest income (30,641) (26,991)Interest received 31,121 28,016Interest expense 5,964 7,128Interest paid (6,263) (7,431)Impairment losses 2,553 4,001Depreciation and amortization 1,533 1,332

Share in (profit)loss of associates (308) (405)Fair value loss (gain) 127 537

Operating loss before changes in operatingresources and liabilities 16,260 21,244Decrease (increase) in financial assets at fair value

through profit or loss 648 (4,649)Decrease (increase) in loans and other receivables (85,436) (38,781)Decrease (increase) in investment properties 612 (70)Decrease (increase) in other resources (2,237) (2,434)Increase (decrease) in deposit liabilities 20,859 84,030

Increase (decrease) in other liabilities (7,244) 1,988Cash generated from (used in) operations (56,538) 61,328Cash paid for income tax (801) (585)

Net Cash From (Used in) Operating Activities (57,339) 60,743

CASH FLOWS FROM INVESTING ACTIVITIESNet acquisitions of bank premises, furniture,

fixtures and equipment (2,346) (2,030)Net decrease (increase) in held-to-maturity investments 0 129,364

Net decrease (increase) in available-for-sale financial assets 33,881 (118,940)

Net Cash From (Used in) Investing Activities 31,535 8,394

CASH FLOWS FROM FINANCING ACTIVITIES

BDO UNIBANK, INC. & SUBSIDIARIESCASH FLOW STATEMENTS

FOR THE PERIODS ENDED JUNE 30, 2014 AND 2013(Amounts in Millions of Pesos)


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CommonStock

PreferredStock

CommonStock

Options

TreasuryShares at

Cost

Additional Paid-in Capital

SurplusReserves

OtherReserves

Surplus Free

Net UnrealizedFair Value

Gain(Losses) on Available-for-sale

Securities

Accumulated Actuarial

Gains/(Losses)

RevaluationIncrement

AccumulatedTranslation

Adjustment

Total Atributableto Shareholders

of the ParentBank

Non-Controlling

InterestTotal Equity

Balance at January, 2014 35,808P 5,150P -P -P 63,908P 2,994P 12P 55,756P 2,609P 3,407)(P 1,027P 146)(P 163,711P 643P 164,354P

Transactions with ownersCash Dividend (7,859) (7,859) (44) (7,903)

Total transactions with owners 0 0 0 0 0 0 0 (7,859) 0 0 0 0 (7,859) (44) (7,903)

Total comprehensive income 11,048 1,207 (1) (28) 12,226 0 12,226

Transfer to/(from) Surplus FreeTrust reserve 36 (36) 0 0

0 0 0 0 0 36 0 (36) 0 0 0 0 0 0 0

Balance at June 30, 2014 35,808P 5,150P -P -P 63,908P 3,030P 12P 58,909P 3,816P 3,408)(P 1,027P 174)(P 168,078P 599P 168,677P

Balance at January, 2013 35,808P 5,150P -P -P 63,908P 2,254P 41,748P 7,641P 3,484)(P 1,116P 427)(P 153,714P 657P 154,371P

Transactions with ownersNet effect of percentage ownership over subsidiaries 3 3 (37) (34)Cash Dividends (7,860) (7,860) (48) (7,908)

Audit Adjustments (40) (40) 1 (39)Total transactions with owners 0 0 0 0 0 3 0 (7,900) 0 0 0 0 (7,897) (84) (7,981)

Total comprehensive income 14,148 (4,094) 376 10,430 37 10,467

Transfer to/(from) Surplus Free Additional appropriation 550 (550) 0 0Trust reserve 29 (29) 0 0

0 0 0 0 0 579 0 (579) 0 0 0 0 0 0 0

Other AdjustmentsConsolidation of a new subsidiary 1 1 39 40

0 0 0 0 0 0 0 1 0 0 0 0 1 39 40

Balance at June 30, 2013 35,808P 5,150P -P -P 63,908P 2,836P -P 47,418P 3,547P 3,484)(P 1,116P 51)(P 156,248P 649P 156,897P



STATEMENTS OF CHANGES IN EQUITYCOMPARATIVE PERIODS ENDED JUNE 30, 2014 AND 2013


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CURRENT 61 180 DAYS 181 - 360 DAYS OVER 360 DAYS ITEMS INLITIGATION

TOTAL

A. INTERBANK TERM LOANS RECEIVABLES P 35,376 P 0 P 0 P 0 P 0 P 35,376

B. LOANS AND RECEIVABLES P 1,000,699 P 4,762 P 2,550 P 7,412 P 3,173 P 1,018,596

Loans & Discounts 836,175 2,663 1,303 3,028 2,628 845,797 Agra-Agri Loans 34,655 20 0 20 0 34,695Bills Purchased 14,803 0 0 24 2 14,829Customers Liability on Draft under LC/TR 38,965 64 144 569 207 39,949

Customers Liability for this Bank's Acceptances 2,072 0 0 0 0 2,072Credit Card Receivables 29,593 1,872 1,024 1,334 205 34,028Restructured Loans 1 0 37 1,004 99 1,141Other Loans & Receivables 5,094 143 42 1,263 32 6,574Reverse Repurchase Agreement 33,508 0 0 0 0 33,508Unquoted Debt Securities Classified as Loans 5,833 0 0 170 0 6,003

C. ACCOUNTS RECEIVABLE P 5,536 P 430 P 222 P 901 P 4 P 7,093 TOTAL P 1,041,611 P 5,192 P 2,772 P 8,313 P 3,177 P 1,061,065


TYPE OF ACCOUNTS


AGING OF LOANS AND ACCOUNTS RECEIVABLE As of June 30, 2014


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Annex A

NO. OF SHARES COMMON Outstanding Balance Average Number of Outstanding Balance Average Number of As of June of Common Shares Common Shares of Common Shares Common Shares

January 3,581 3,581February 3,581 3,581March 3,581 3,581

April 3,581 3,581May 3,581 3,581June 3,581 3,581 3,581 3,581

Weighted Average 3,581 3,581

Basic Earnings per share

Net profit attributable to shareholders of the Parent Bank 11,048 14,148Less: Dividends on preferred shares 339 340Net profit available to common shares 10,709 13,808Divided by the weighted average number of outstanding common shares 3,581 3,581

Basic Earnings per share 2.99 3.86

Diluted Earnings Per ShareNet profit attributable to shareholders of the Parent Bank 10,709 13,808Divided by the weighted average number of outstanding common shares: Weighted Average number of common shares 3,581 3,581 Potential common shares from assumed conversion of preferred shares 0 0 Potential common shares from assumed conversion of stock option plan 0 0 Total weighted average number of common shares after assumed conversion of convertible preferred shares 3,581 3,581

Diluted Earnings Per Share 2.99 3.86

Note: *Net profit attributable to shareholders of the Parent Bank is reduced by dividends on preferred shares as these

were not assumed to be converted. Potential common shares from assumed conversion of these preferred shares are anti-dilutive in 2014 and 2013.

2014 2013

BDO UNIBANK, INC. & SUBSIDIARIES7899, BDO Corporate Center, Makati Avenue, Makati City

COMPUTATION OF WEIGHTED NUMBER OF COMMON SHARES(Amounts in Millions of Pesos Except Per Share Data)


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BDO Unibank, Inc. & SubsidiariesBalances by Segment

As of June 30, 2014(Amounts in Millions of Pesos)

Commercial Banking Investment Banking Private Banking Thrift Banking Leasing & Finance Others Total Eliminations Group

Statement of IncomeTotal Interest Income

External 29,206 36 628 26 716 29 30,641 0 30,641Inter-Segment 100 2 2 0 0 3 107 (107) 0

29,306 38 630 26 716 32 30,748 (107) 30,641

Total Interest ExpenseExternal 5,657 0 117 19 171 0 5,964 0 5,964Inter-Segment 5 37 0 0 46 18 106 (106) 0

5,662 37 117 19 217 18 6,070 (106) 5,964

Net Interest Income 23,644 1 513 7 499 14 24,678 (1) 24,677

Other Operating IncomeInvestment Banking Fees 0 568 0 0 0 0 568 0 568Others 13,633 73 286 2 394 1,002 15,390 (1,673) 13,717

13,633 641 286 2 394 1,002 15,958 (1,673) 14,285

Other Operating ExpensesDepreciation and Amortization 1,246 27 21 6 223 10 1,533 0 1,533

Impairment Losses 2,502 0 0 0 50 1 2,553 0 2,553Others 21,175 390 475 28 263 439 22,770 (68) 22,702

24,923 417 496 34 536 450 26,856 (68) 26,788

Profit before Tax 12,354 225 303 (25) 357 566 13,780 (1,606) 12,174Tax Expense 796 82 69 7 108 57 1,119 0 1,119Net Profit 11,558 143 234 (32) 249 509 12,661 (1,606) 11,055

Statements of Financial PositionTotal Resources

Segment Assets 1,608,812 6,479 40,179 5,830 26,624 9,400 1,697,324 (19,873) 1,677,451Intangible Assets 1,034 101 18 0 42 2 1,197 0 1,197Deferred Tax Assets 6,029 (186) 68 3 (41) (12) 5,861 0 5,861

1,615,875 6,394 40,265 5,833 26,625 9,390 1,704,382 (19,873) 1,684,509Total Liabilities 1,457,518 3,500 34,666 4,913 22,019 2,364 1,524,980 (9,148) 1,515,832

Other Segment InformationCapital expenditures 1,811 11 19 43 492 9 2,385 0 2,385Investment in associate under

equity method 5,679 41 0 0 0 0 5,720 0 5,720Share in the Profit of associates 303 5 0 0 0 0 308 0 308


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BDO Unibank, Inc. & SubsidiariesBalances by Segment

As of June 30, 2013(Amounts in Millions of Pesos)

Commercial Banking Investment Banking Private Banking Leasing & Finance Others Total Eliminations Group

Statement of IncomeTotal Interest Income

External 25,857 41 419 636 38 26,991 0 26,991

Inter-Segment 140 1 1 0 6 148 (148) 025,997 42 420 636 44 27,139 (148) 26,991

Total Interest ExpenseExternal 6,961 1 53 113 0 7,128 0 7,128Inter-Segment 7 21 0 107 13 148 (148) 0

6,968 22 53 220 13 7,276 (148) 7,128

Net Interest Income 19,029 20 367 416 31 19,863 0 19,863

Other Operating IncomeInvestment Banking Fees 0 555 0 0 0 555 0 555Others 17,694 94 1,040 280 1,096 20,204 (475) 19,729

17,694 649 1,040 280 1,096 20,759 (475) 20,284

Other Operating ExpensesDepreciation and Amortization 1,158 1 20 143 10 1,332 0 1,332Impairment Losses 3,918 0 32 50 1 4,001 0 4,001Others 18,582 202 423 241 376 19,824 (67) 19,757

23,658 203 475 434 387 25,157 (67) 25,090

Profit before Tax 13,065 466 932 262 740 15,465 (408) 15,057Tax Expense 553 138 63 58 73 885 0 885Net Profit 12,512 328 869 204 667 14,580 (408) 14,172

Statements of Financial PositionTotal Resources

Segment Assets 1,279,284 5,196 25,625 21,302 11,753 1,343,160 (22,535) 1,320,625Intangible Assets 993 99 2 0 0 1,094 0 1,094Deferred Tax Assets 6,258 (34) 76 4 (20) 6,284 0 6,284

1,286,535 5,261 25,703 21,306 11,733 1,350,538 (22,535) 1,328,003Total Liabilities 1,139,801 2,869 19,870 16,713 2,212 1,181,465 (10,359) 1,171,106

Other Segment InformationCapital expenditures 1,542 45 7 504 1,201 3,299 0 3,299Investment in associate under

equity method 5,265 33 0 0 0 5,298 0 5,298Share in the Profit of associates 394 11 0 0 0 405 0 405

Documents

BDO Unibank: Q2/H1 results