#1Philippine National Bank Company Brief March 2021 PNB you first#2Page 1 Company Introduction 3 2 Financial Highlights 9 3 Board of Directors & Senior Management 13 4 Awards & Citations 16 PNB You first.#3About PNB Philippine National Bank is one of the country's largest private universal banks in terms of assets, loans and deposits. PNB 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 710 branches and 1,725 ATMs strategically located nationwide. The Bank maintains its position as the Philippine bank with the most extensive international reach with 70 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. You firat. PNB Philippine National Bank www.pnb.com.ph www.pnb.com.ph Page 3#4Products and Services PNB provides a full range of quality products and services to a wide customer base: Branch Banking • Retail Lending ⚫ Deposit Accounts • e-Banking Services Home Loans • Auto Loans • Salary Loans • SMES • Cash • ⚫ OPHL Management Solutions Institutional Banking Trust & Wealth Mgmt Corporate & Middle Market Trade Finance • UITFS . Financial Institutions • Personal Trust • Corporate Trust • PNB Wealth Management Treasury Services Fixed Income Investments • Foreign Exchange Services • Interest Rate Swaps PNB You firat. Remittance Services • Sending/ Receiving • Global Filipino Card • Overseas Bills Payment Through its subsidiaries and affiliate, the Bank also engages in: Investment Banking Leasing Stock Brokerage • Underwriting . Financial Leases • Distribution of Securities . • Financial Advisory • Receivable • Project Finance Discounting • Loan Syndication Insurance Overseas Subsidiaries Operating Leases • Equities Trading • Stock Market Research Life Insurance • Full banking services • Remittance services 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 finat. 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 Affiliate LT Group Philippine National Bank Domestic Subsidiaries Overseas Subsidiaries Affiliate: Allianz PNB Life Insurance Inc. (44%) PNB Capital and Investment Corp (100%) PNB Holdings Corp (100%) PNB General Insurers, Co. Inc. * (65.75% - PNB Parent 34.25% - PNB Holdings) PNB Securities Inc. (100%) PNB-Mizuho Leasing & Finance Co (75%) *On March 2021, Alliedbankers Insurance Corp. (ABIC) completed the final payment to PNB Parent Bank for the purchase of PNB General Insurance Co. Inc. (PNB Gen) PNB Internatioanl Investments Corp. (100%) PNB Remittance Centers Inc (100%) PNB RCI Holding Co Ltd. (100%) PNB Remittance Company Canada (100%) Allied Banking Corp. (HK) Ltd. (51%) Allied Commercial Bank (Xiamen) (99.04%) PNB Global Remittance & Financial Co. (HK) Ltd. (100%) PNB Europe Plc (100%) PNB You first. Page 6#7Market Reach As of April 2021 PNB Global Network You first. 70 offices in 17 countries Europe - 4 North America - 30 Asia & Oceania - 17 446 correspondent banks Middle East - 19 Domestic Network 710 branches in the Philippines 1,725* ATMs nationwide * 134 are Cash Accepting Machines (CAMs) Branch Distribution: 62% outside Metro Manila Page 7#8Page 1 Company Introduction 3 2 Financial Highlights 9 3 Board of Directors & Senior Management 13 Awards & Citations 16 4 PNB You first.#9Profitability & Balance Sheet Net Income In Php Millions 1,792 34% 1,337 Total Assets In Php Billions 1,231 -8% 1,136 PNB You first. • • Q1 2020 Q1 2021 Higher Net Income due to improvement in net service fees, lower operating expenses, and reduced provisions for credit losses Lower Net Interest Income owing to the Bank's prudent approach in asset deployment amid lingering economic uncertainties combined with lower yields on earning assets due to downtrend in benchmark interest rates. FY 2020 Q1 2021 Total Assets were lower in Q1 2021 caused by reduced investment securities as well as drop in Due from BSP. Page 9#10Q1 2021 P&L PNB PNB Consolidated You first. (in PHP million) Interest Income Q1 2021 Q1 2020 % Change 10,387 12,562 -17.3% Interest Expense 2,150 3,734 -42.4% NET INTEREST INCOME 8,237 8,828 -6.7% Fee-Based and Other Income 2,846 3,474 -18.1% Net Service Fees and Commission Income 1,294 962 34.5% Other Income 1,552 2,512 -38.2% TOTAL OPERATING INCOME 11,083 12,302 -9.9% Admin and Operating Expense 6,687 7,241 -7.7% Income Before Provisions 4,396 5,061 -13.1% Provision for impairment and credit losses 2,095 3,356 -37.6% Provision for Income Tax 530 372 42.5% NET INCOME FROM CONTINUING OPERATIONS 1,771 1,333 32.9% NET INCOME FROM DISCONTINUED OPERATIONS 21 425% NET INCOME 1,792 1,337 34% Return on average equity (ROE) 4.68% 3.53% Return on average assets (ROA) 0.61% 0.49% Net Interest Margin (NIM Rate) 3.17% 3.33% Cost efficiency ratio 60.34% 58.86% Page 10#11Q1 2021 BALANCE SHEET PNB You firat. 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 Q1 2021 FY 2020 % Change 226,451 286,697 -21.0% 232,321 268,594 -13.5% 609,283 599,994 1.5% 19,626 19,878 -1.3% 14,443 14,445 -0.01% 33,424 41,525 -19.5% 1,135,548 1,231,133 -7.8% 847,620 890,287 -4.8% Bonds Payable 64,615 64,056 0.9% Bills & Acceptances Payable 41,505 87,159 -52.4% Other Liabilities 27,283 33,648 -18.9% TOTAL LIABILITIES 981,023 1,075,150 -8.8% TOTAL EQUITY 154,525 155,983 -0.9% TOTAL LIABILITIES AND EQUITY 1,135,548 1,231,133 -7.8% Loans/Deposits 71.88% 69.20% Total CAR 14.77% 15.54% Page 11#12PNB You first. Page 1 Company Introduction 3 2 Financial Highlights 9 3 Board of Directors & Senior Management 13 4 Awards & Citations 16#13Board of Directors Federico C. Pascual Chairman/Independent Director . Serves as director of multiple PNB subsidiaries Former Acting President and Vice Chairman of PNB Former Director/President & CEO of Allied Banking Corp. ⚫ Former President and General Manager of GSIS Former President of the Philippine Chamber of Commerce and Industry 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. Independent Director of PNB Mizuho Leasing and Fin. Corp. Independent Director of PNB Savings Bank . Leonilo G. Coronel Vice Chairman/Director Independent Director of Megawide Construction Corp. Independent Director of DBP-Daiwa Capital Markets Phil. Former Executive Director of BAP Former Chairman/Director of PNB Domestic/Foreign Subsidiaries Estelito P. Mendoza Director Director of Petron Director of San Miguel Corporation Practicing lawyer for more than 60 years Jose Arnulfo "Wick" A. Veloso President and CEO/ Director President of Bankers Association of the Philippi Deck of AP Life Irwance, Inc Director of Dippin Depay & The Corp (POC) Php Dingy Holding Corp (PDSH) Director of European Chenter of Commerce of the Phis Council Member Director of ASEAN Bankers Actation Member of MP and Chairman of the SAP Cal Marks Development Corvi Former Print and CEO of HBC Phi Former Director of HSBC Electronic Data Processing (Phils, Inc. Former Chairman of HSBC Savings B Bark Phi Former Chairman of HSBC nuance Brok (Phil)Inc. of Charter of the Phil formar Chien of the Council of That The BSchool Former Chairman of the BAP Open Market Comes Former President of the Money Market Association of the Phila Former Director of Phappine Dealing and Exchange Corp Florido P. Casuela Director • Chairman of PNB Securities, Inc. ⚫ Chairman and President of Casuela Equity Ventures, Inc.. • Senior Adviser of the Bank of Makati (A Savings Bank), Inc. • Former President of Landbank of the Phil., Maybank & Surigao Micro Credit Corp. Lucio C. Tan Director . PNB You finat. Chairman and CEO of LT Group, Inc. Chairman and CEO of PAL Holdings, Inc. Chairman and CEO of MacroAsia Corp. Michael G. Tan Director President and COO of LT Group, Inc. President and COO of Asia Brewery, Inc. Director of Victorias Milling Company, Inc. Lucio C. Tan III Director • Director/President and Chief Operating Officer of Tanduay Distillers, Inc. Director of LT Group, Inc., PAL Holdings, Inc., MacroAsia Corporation, Victorias Milling Corporation, PNB Holdings Corporation, Philippine Airlines, Inc., Lufthansa Technik Philippines, Air Philippines Corporation Vivienne K. Tan Director • Director of LT Group, Inc., MacroAsia Corporation, Eton Properties Phils., Inc. ⚫ Founding Trustee of Philippine Center for Entrepreneurship (Go Negosyo) • Trustee of University of the East, University of the East Ramon Magsaysay Memorial Medical Center, College of Saint Benilde Angelito M. Villanueva Independent Director . Former Director of Philippine Clearing House Corporation, BancNet, Inc., Metropolitan Bank & Trust Company, Toyota Motor Philippines Corporation, Toyota Motor (Phils.) Foundation, First Metro International Investments Co., Ltd.,. Philippine Savings Bank (PSBank), Phil. Charter Insurance Co., Inc. Former Consultant of ECTK Integrated Security Group Former Faculty Member of Philippine Christian University and Lyceum of Aparri - Cagayan Province Sheila T. Pascual Director ⚫ Business Development Manager of Allied Banking Corp. (Hong Kong) Ltd. • Director of Allied Commercial Bank ⚫ Former Marketing Development Officer of Asia Brewery, Inc. Wilfrido E. Sanchez Independent Director Tax Counsel Offices Quiason Makalintal Barot Torres Ibarra Sison & Damaso Law Vice Chairman of The Center for Leadership & Change, Inc. Independent Director: LT Group, Inc., Adventure International Tours, Inc., Amon Trading Corporation, EEI Corporation, Grepalife Asset Management Corporation, Grepalife Fixed Income Fund Corporation, House of Investments, Inc., JVR Foundation, Inc., Kawasaki Motor Corporation, Magellan Capital Holdings Corporation, Omico Corporation, PETNET, Inc., PETPLANS, Inc., Transnational Diversified Corporation, Transnational Diversified Group, Inc., Transnational Financial Services, Inc., Universal Robina Corporation, Eton Properties Philippines, Inc., Asia Brewery, Inc., and Tanduay Distillers, Inc. Carmen K. Tan Director • Vice Chairman of LT Group, Inc. . . Director of PAL Holdings, Inc. Director of MacroAsia Corp. 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., AllianceLand Dev't Corp. • Former President of the 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 Cenon C. Audencial Jr. EVP Head of the Institutional Banking Sector Roberto D. Baltazar EVP Head of Global Banking and Markets Sector Nelson C. Reyes EVP Chief Financial Officer Jose German M. Licup FSVP Chief of Staff to the President and CEO Isagani A. Cortes EVP Chief Compliance Officer Aida M. Padilla EVP Head of the Enterprise Services Sector Manuel C. Bahena, Jr. FSVP Chief Legal Counsel Marie Fe Liza S. Jayme FSVP Head of Operations Group Ma. Adelia A. Joson FSVP Head of Retail Banking Sector Maria Paz D. Lim FSVP Corporate Treasurer Nanette O. Vergara FSVP Chief Credit Officer Paolo Eugenio J. Baltao. SVP Special Asstant to the President on the Digital Bank Initiative Socorro D. Corpus SVP OIC Human Resource Group Claro P. Fernandez SVP Head of Public Affairs Group Noel C. Malabag SVP Head, Global Markets Group Michael M. Morallos SVP Head of the Information Technology Group Roland V. Oscuro SVP Chief Information Security Officer Damasen Paul C. Cid FVP Head, Digital Innovations Group Joy Jasmin R. Santos FVP Chief Trust Officer & Head of Trust Banking Group Simeon T. Yap FVP Chief Risk Officer Samuel G. Lazaro VP OIC Internal Audit Group Leia V. Regala-Teodoro SAVP OIC Marketing Services/ Intelligence & Analytics PNB You first. Page 14#15PNB You first. Page 1 Company Introduction 3 2 Financial Highlights 9 3 Board of Directors & Senior Management 13 Awards & Citations 4 16#16Recent Awards TAB THE ASIAN BANKER® STRATEGIC BUSINESS INTELGENCE FOR THE FINANCIAL SERVICES COMMUNEY A BEST BANK AWARDS 2020 ASIAMONEY QUILL The Asian Banker Leadership Achievement Awards (2020) "Best Managed Bank during COVID-19 in the Philippines" "Best CEO" awarded to President Wick Veloso Asiamoney Banking Awards (2020) · "Best Bank for Corporate Social Responsibility in the Philippines" Recognized as "Leader for Women" 55th Anvil Awards (2020) "Public Relations Program on a Sustained Basis - Development Communication" (PNB-PAL Mabuhay Miles Debit Mastercard) 18th Philippine Quill Awards (2020) "Communication Management Marketing, Advertising, and Brand Communication" (More Ways to Experience More Firsts with PNB Cards! Campaign) PNB You first. Page 16#17Recent Awards ASSET ASIAN WARDS A THE Asset TRIPLEA 2018 CMO ASIA The Asset triple A Country Awards (2019) PNB You finat. • "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" ASEAN Corporate Governance Scorecard Assessment (2019) "Recipient of the three-arrow recognition for getting a score of 100-109 in the 2019 ASEAN Corporate Governance Scorecard (ACGS)" Page 17#18Recent Awards International Finance Awards (2019) 2018 INTERNATIONAL FINANCE BANKING AWARDS "Fastest Growing Bank for Consumer Loans Philippines 2018” PNB You first. 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 Page 16#19Disclaimer PNB You firat. 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.