#1Philippine National Bank Company Brief December 2019 PNB you first.#2PNB You first.. Page 1 Company Introduction 3 2 Financial Highlights 9 3 Board of Directors & Senior Management 13 4 Awards & Citations 16#3About PNB ■ ■ PNB Philippine National Bank is one of the country's largest private universal banks in terms of assets, loans and deposits. You first. It provides a full range of banking and other financial services to its highly diverse clientele comprised of individual depositors, small and medium enterprises, domestic and international corporations, government institutions, and overseas Filipinos. PNB has 715 branches and 1,626 ATMs strategically located nationwide. The Bank maintains its position as the Philippine bank with the most extensive international reach with 71 overseas branches, representative offices, remittance centers and subsidiaries across Asia, Europe, the Middle East, and North America. Backed by over a century of stability and excellence, PNB looks forward to more years of serving its customers first. Philippine National Bank PNB www.pnb.com.ph www.pnb.com.ph ATM Page 3#4Products and Services PNB provides a full range of quality products and services to a wide customer base: Branch Banking ⚫ Deposit . Accounts • e-Banking . Services • Cash Management Solutions Retail Lending • Home Loans . Auto Loans • Salary Loans • SMES · ⚫ OPHL Institutional Banking • Corporate & Middle Market . • Trade Finance • Financial Institutions Trust & Wealth Mgmt UITFS • Personal Trust • • Corporate Trust • PNB Wealth Management Through its subsidiaries and affiliate, the Bank also engages in: Insurance Investment Banking • Underwriting Stock Brokerage • . Treasury Services Fixed Income Investments ⚫ Foreign Exchange Services • Interest Rate Swaps Leasing PNB You first.. Remittance Services • Sending/ Receiving •Global Filipino Card • Overseas Bills Payment • Non-life insurance • Life Insurance . • Distribution of Securities • • Financial Advisory • Project Finance Equities Trading • Stock Market Research • Financial Leases • Operating Leases Receivable Discounting • Loan Syndication Page 4#5Major Milestones 1980 Became the first universal bank in the Philippines 1999 The Lucio Tan Group acquired around 35% of PNB's total outstanding capital stock and joined the Bank's Board of Directors. 2005 Joint sale of Government and Lucio Tan Group shares 2013 Merged with Allied Banking Corporation (ABC) on February 9, 2013 2015 Successfully closed and signed a USD150 million 3-year syndicated term loan facility • 2019 PNB You firat.. PNB inked a Syndicated Loan amounting to USD250M through its Tokyo Branch PNB successfully issued a maiden peso bond offer which reached P13.87 B Establishment of PNB - served as de facto central bank of the Philippines until 1946 1916 Privatization of PNB reduced Government ownership to 45% Lucio Tan Group became the single biggest private stockholder of PNB 1989-96 2000 Full privatization after a Follow-on Equity Offering (89 million primary shares and 71.8 million secondary shares) 2007 Completed its stock right offering of common shares raising P11.6 billion in additional capital (P10 billion of which was infused into PNB Savings Bank) 2014 PNB successfully issued USD300 M of 5-Year Fixed Rate Senior Notes out of its USD1 B Medium Term Note Program 2018 PNB listed 276,625,172 common shares from a recently concluded stocks right offering raising P12 B PNB issued US$ 750 M Notes to be drawn down from its recently increased US$ 2 B Medium Term Note 2019 Page 5#6PNB Subsidiaries and Affiliates Philippine National Bank Affiliate: Allianz PNB Life Insurance Inc. 44% Domestic PNB Capital and Investment Corp. 100% PNB Holdings Corp. 100% PNB General Insurers Overseas PNB Intl. Investment Corp. 100% PNB Remittance Centers Inc. 100% PNB RCI Holding Co. Ltd. 100% PNB Remittance Co. Canada Co. Inc 100% 100% PNB Securities Inc. 100% PNB-IBJL Leasing and PNB Global Remittance & Fin'l Co. (HK) Ltd. 100% Finance Corp. 75% PNB-IBJL Eqpt Rentals Corp. 75% *Last March 1, 2020, PNB integrated its wholly-owned thrift bank subsidiary, PNB Savings Bank (PNBSB), into the Parent Bank through acquisition of its assets and assumption of its liabilities in exchange for cash. PNB Europe PLC 100% Allied Banking Corp. (HK) Ltd. 51% Allied Commercial Bank (Xiamen) 99.04% PNB You first. Page 6#7Market Reach North America - 30 As of Dec 2019 Oceania - 17 Global Network 71 offices in 17 countries 505 correspondent banks Europe - 5 Asia & Middle East - 19 Domestic Network 715 branches in the Philippines 1,626 ATMs nationwide Branch Distribution: 62% outside Metro Manila PNB You first.. Page 7#8PNB You first.. Page 1 Company Introduction 3 2 Financial Highlights 9 3 Board of Directors & Senior Management 13 Awards & Citations 16 4#9Net Income & Balance Sheet Net Income (without ROPA) In Php Millions • • 5,946 2018 57% 9,336 2019 Balance Sheet In Php Billions 984 2018 16% 1,142 2019 Core profitability boosted by solid growth in recurring income & increase in trading and foreign exchange gains Reported net income of P 9,761 M in FY 2019 grew by 2% from P 9,556 M in FY 2018 Steady growth in assets was driven by sustained momentum in core lending and deposit taking activities - PNB You first. Page 9#10FY 2019 P&L PNB You first. (in PHP million) Interest Income Interest Expense FY 2018 FY 2019 PNB Consolidated % Change 50,599 36,075 40.3% 18,155 9,011 101.5% NET INTEREST INCOME 32,444 27,065 19.9% Fee-Based and Other Income 8,668 11,857 -26.9% Net Service Fees and Commission Income 4,188 3,486 20.1% Other Income 4,238 8,435 -49.8% TOTAL OPERATING INCOME 41,112 38,922 5.6% Admin and Operating Expense 25,969 23,926 8.5% Income Before Provisions 15,142 14,996 1.0% Provision for impairment and credit losses 1,753 2,910 66.0% Provision for Income Tax 2,471 3,687 -33.0% NET INCOME 9,761 9,556 2.1% Return on average equity (ROE) 6.9% 7.7% Return on average assets (ROA) Net Interest Margin (NIM RATE) Cost efficiency ratio 0.9% 1.1% 3.3% 3.3% 63.2% 61.0% Page 10#11FY 2019 BALANCE SHEET PNB Consolidated (in PHP million) Cash/Due from BSP & Other Banks Investment Securities Loans and Receivables Property & Equipment Investment Properties Other Assets TOTAL ASSETS Deposit Liabilities Bonds Payable Bills & Acceptances Payable Other Liabilities TOTAL LIABILITIES FY 2019 FY 2018 % Change 179,073 151,800 18.0% 239,592 183,636 30.5% 657,924 586,666 12.1% 21,169 19,725 7.3% 15,044 13,489 11.5% 29,489 28,331 4.1% 1,142,291 983,648 16.1% 826,045 733,301 12.6% 66,615 15,661 325.3% 55,963 70,083 -20.1% 38,691 36,043 7.3% 987,315 855,089 15.5% TOTAL EQUITY 154,975 128,559 20.5% TOTAL LIABILITIES AND EQUITY 1,142,291 983,648 16.1% Loans/Deposits 78.9% 78.3% Total CAR 14.8% 14.4% PNB You first.. Page 11#12PNB You first.. Page 1 Company Introduction 3 2 Financial Highlights 9 3 Board of Directors & Senior Management 13 Awards & Citations 16 4#13Board of Directors . . • Florencia G. Tarriela Chairman/Independent Director Serves as director of multiple PNB subsidiaries Director of Bankers Association of the Philippines Former Undersecretary of Finance Felix Enrico R. Alfiler Vice Chairman/Independent Director • Serves as director of multiple PNB subsidiaries Former Director of the BSP Jose Arnulfo "Wick" A. Veloso President and CEO/ Director ⚫ Director of Allianz-PNB Life Insurance, Inc. • Director of Asian Bankers Association Inc. BancNet, Inc., European Chamber of Commerce, Phils., Phil. Payments Management Inc., ⚫ Former President and CEO of HSBC, ⚫ Former President of the Money Market Association of the Phils. • Former Director and Chairperson of the Open Market Committee of BAP Former Director of PDEX. Florido P. Casuela Director • Chairman of PNB Securities, Inc. Vice Chairman of PNB Savings Bank Senior Adviser of the Bank of Makati (A Savings Bank), Inc. • Former President of Landbank of the Phil., Maybank & Surigao Micro Credit Corp. Leonilo G. Coronel Director • • Independent Director of Megawide Construction Corp. Independent Director of DBP-Daiwa Capital Markets Phil. Former Executive Director of BAP Edgar A. Cua Independent Director . . Independent Director of PNB Capital and Investment Corp. Independent Director of Allied Commercial Bank, Xiamen Director of Davao Unicar Corp. PNB You first. Lucio C. Tan Director . Chairman and CEO of LT Group, Inc. • Chairman and CEO of PAL Holdings, Inc., . Chairman and CEO of MacroAsia Corp. Estelito P. Mendoza Director • Director of Philippine Airlines, Inc. . Director of Petron • Director of San Miguel Corporation Practicing lawyer for more than 60 years Christopher J. Nelson Director . Executive Director of the British Chamber of Commerce of the Philippines Trustee of the American Chamber Foundation of Commerce of the Phil., Inc.. Trustee of the Philippine Band of Mercy Trustee of the Federation of the Philippine Industries Inc. Trustee of Dualtech Training Foundation • Michael G. Tan Director President and COO of LT Group, Inc. Director of Victorias Milling Company, Inc • Director of PAL Holdings, Inc. • Vivienne K. Tan Director Director of LT Group, Inc., PAL Holdings, Inc., MacroAsia Corporation, University of the East, University of the East Ramon Magsaysay Medical Center, Eton Properties Phils, Inc. Director and EVP/Treasurer & Chief Administrative Officer of Philippine Airlines ⚫ Founding Trustee of Philippine Center for Entrepreneurship (Go Negosyo) Federico C. Pascual Independent Director • Serves as director of multiple PNB subsidiaries Former President and General Manager of GSIS Former Director/President & CEO of Allied Banking Corp. Sheila K. Tan-Pascual Director •Marketing and Development Officer of Allied Banking Corporation Hong Kong • Former Marketing and Development Officer of Asia Brewery Inc. Carmen K. Tan Director Director of MacroAsia Corp. • Director of LT Group, Inc. • Director of PAL Holdings, Inc. Domingo H Yap Independent Director President of H-Chem Industries, Inc., DHY Realty & Dev't, Inc., Colorado Chemical Sales Corp., Universal Paint & Coating Phils., Inc., Alliance Land Dev't Corp. Former President of Federation of Filipino-Chinese Chambers of Commerce & Industries, Inc. Page 13#14Senior Management Jose Arnulfo "Wick" A. Veloso President and CEO of the Bank since 2018 PNB You first.. Cenon C. Audencial Jr. EVP Head of the Institutional Banking Sector Roberto D. Baltazar EVP Head of Global Banking/ and Markets Sector Chester Y. Luy EVP Head of the Strategy Sector and Wealth Management Group Aida M. Padilla EVP Head of the Enterprise Services Sector Nelson C. Reyes EVP Chief Financial Officer Isagani A. Cortes EVP Chief Compliance Officer Jose German M. Licup FSVP Chief of Staff to the President and CEO Maria Paz D. Lim FSVP Corporate Treasurer Nanette O. Vergara FSVP Chief Credit Officer Manuel C. Bahena, Jr. SVP Chief Legal Counsel Socorro D. Corpus SVP OIC Human Resource Group Claro P. Fernandez SVP Head of Public Affair Group Marie Fe Liza S. Jayme SVP Head of Operations Group Ma. Adelia A. Joson SVP OIC - Retail Banking Sector Roland V. Oscuro SVP Chief Information Security Officer Martin G. Tengco Jr. FVP Chief Audit Executive Michael M. Morallos SVP Head of the Information/ Technology Group Norman Martin C. Reyes SVP Head, Digital Innovations Group Simeon T. Yap FVP Chief Risk Officer Rommel B. Narvaez SVP OIC-Marketing and Brand/ Management Sector Joy Jasmin R. Santos FVP Chief Trust Officer & Head of Trust Banking Group Page 14#15PNB You first.. Page 1 Company Introduction 3 2 Financial Highlights 9 3 Board of Directors & Senior Management 13 Awards & Citations 16 4#16Recent Awards 2018 INTERNATIONAL FINANCE BANKING AWARDS International Finance Awards (2019) "Fastest Growing Bank for Consumer Loans Philippines 2018" PNB You first. ASIAN * ASSE AWARDS A THE Asset TRIPLE A 2018 * CMO ASIA The Asset triple A Country Awards (2019) • "Best Syndicated Loan Award" (Bloomberry Resorts and Hotels syndicated term loan facility) • "Most Innovative Deal Award" (Ayala Land's retail bonds) ⚫"Best Acquisition Financing" (Clark Global City Corp) CMO Asia Awards (2019) "Brand Leadership Award" SSS Balikat ng Bayan Awards (2019) "Best Paying Commercial Bank" Page 16#17Recent Awards ICD Institute of Corporate Directors Recognized by the Philippine Institute of Corporate Directors (2019) as among the top-performing publicly listed companies under the ASEAN Corporate Governance Scorecard PDS Group Philippine Dealing System Awards (2019) "Ranked Top 3 Issue Managers/Arrangers (Investment House Category)" INVESTMENT HOUSE ASSOCIATION of the PHILIPPINES Investment House Association of the Philippines (2019) "Best Small-cap Equity Deal" TAB PNB You first. Asian Banker Philippine Country Awards (2018) "Consumer Finance Product of the Year" (PNBSB's Smart Personal THE ASIAN BANKER* Loan) Page 17#18Disclaimer PNB You first.. Unless otherwise noted, the financial data contained in these materials are presented under Philippine Financial Reporting Standards. Unless otherwise specified, all the financial information is shown on a consolidated basis. Information concerning financial institutions other than the Bank and its subsidiaries are based on publicly available information and the Bank has not independently verified such data. This presentation is being communicated only to persons who have professional experience in matters relating to investments and to person to whom it may be lawful to communicate it to (all such persons being referred to as "relevant persons"). This presentation is being furnished to relevant persons solely for their information and may not be reproduced or redistributed to any other person. By participating in this presentation or by accepting any copy of the slides presented, you agree to be bound by the foregoing limitations.