Investor Presentaiton

Economic Updates Global Growth Domestic Growth Inflation continued to ease over the quarter, on the back of low energy prices Global GDP forecast for 2023 at 2.8% from 3.4% in 2022 (IMF) Economic slowdown will be more pronounced in advanced than developing economies, amid high inflation and financial sector stress Phil GDP to grow 5.9% in 2023, lower than government target of 6.0% to 7.0% Expansion driven by continued growth in private consumption and government spending Interest Rates & Monetary Policy Banking Industry 3 BPI BSP further increased monetary policy rate by 75bps to 6.25% by end of 1Q23 The yield curve flattened - rates on short tenors increased in anticipation of more hikes in policy rate; rates for medium to long tenors decreased as inflation eased considerably in March Banks to benefit from higher asset repricing if elevated inflation and interest rates persist Amid series of rate hikes from BSP, loan growth has slowed and NPL ratio has increased Collapse of Silicon Valley Bank led to major sell-off in US and Europe financial sectors; Philippine Banks appear largely insulated THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS.

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