Narrative Report:

MBA 103
Perpetualite Perspective in Business

Case Study:

BDO UNIBANK

University of Perpetual Help System-Dalta

GRADUATE SCHOOL

by
CHEMA C. PACIONES

JULY 2020
HISTORY

BDO Unibank, Inc. had its humble beginnings on January 2, 1968, when it started off as a thrift bank
called Acme Savings Bank. With two branches in Metro Manila, Acme was one of the smallest banks in
the Philippines at the time.

In November 1976, Acme was acquired by the Sy Group, the group of companies currently owned by
retail magnate Henry Sy, and renamed Banco de Oro Savings and Mortgage Bank.

In December 1994, BDO became a commercial bank. To reflect the bank's new status, BDO was renamed
Banco de Oro Commercial Bank, and in September 1996, BDO became a universal bank, which led to the
bank's name being changed to the current Banco de Oro Universal Bank (BDO Unibank, Inc.). It is one of
the many banks owned by a Chinese-Filipino in the Philippines (others include Metrobank and
Chinabank).

BDO Unibank, Inc. eventually became involved in insurance services in 1997 (it is a bancassurance firm)
by establishing a subsidiary called BDO Insurance Brokers. In 1999, BDO Unibank, Inc. expanded its
insurance services through partnerships with Zamora Assurance and Assicurazoni Generali s.p.a., one of
the world's largest insurance firms, and Jerneh Asia Berhad, a member of Malaysia's Kuok Group. Later,
BDO Unibank, Inc. partnered up with its insurance affiliates, which are Generali Pilipinas Life Assurance

Company and Generali Pilipinas Insurance Company, in March 2000.

CORPORATE PROFILE

BDO Unibank Inc. (BDO), originally known as Acme Savings Bank, was acquired by the SM Group in 1976.
BDO listed its shares on the Philippine Stock Exchange on May 21, 2002. The Company merged with
Equitable PCI Bank in May 2007.

BDO offers a complete array of products and services, i.e. retail banking; lending (corporate,
commercial, consumer, and SME); treasury; trust; credit cards; corporate cash management; and
remittances. Through its subsidiaries, the Company offers leasing and financing; investment banking;
private banking; bancassurance; insurance brokerage; and stock brokerage services.

The Company's local subsidiaries include BDO Private Bank, Inc.; BDO Leasing and Finance, Inc.; BDO
Elite Savings Bank, Inc.; BDO Capital & Investment Corporation; PCIB Securities, Inc.; and BDO Insurance
Brokers, Inc. The Company also has foreign subsidiaries in Hong Kong; USA; Europe; Japan; and Canada.
The Company's associates are Manila North Tollways Corporation; SM Keppel Land, Inc.; Generali
Pilipinas Holdings, Inc.; Northpine Land Incorporated; and Taal Land, Inc.

As of December 31, 2015, BDO has 1,028 operating domestic branches, one branch in Hong Kong and
3,195 ATMs and 191 cash accept machines.

VISION STATEMENT

We shall be at the forefront of the leasing and financing industry in the Philippines and in the Asia Pacific
Region. We shall have the most extensive market reach and shall be composed of highly trained,
technically competent and upright professionals working as a team and contributing to the growth of
the nation and the communities we serve. Recognizing that the customer is the focus of our activities,
we shall lead the industry by providing modern and relevant financial services which exceed their
expectations.

MISSION STATEMENT

We are in business for our customers, shareholders and employees. We shall deliver creatively
innovative products and cross-sell the BDO Unibank Group’s services supported by procedures, systems
and processes which will ensure utmost customer satisfaction. We shall recognize and reward
excellence in our employees and shall provide an environment conducive to maximizing their potentials
as we work cohesively as a team. We shall generate consistently high returns for our shareholders.

CORE VALUES

Commitment to Customers

We are committed to deliver products and services that surpass customer expectations in value and
every aspect of customer services, while remaining to be prudent and trustworthy stewards of their
wealth.

Commitment to a Dynamic and Efficient Organization

We are committed to creating an organization that is flexible, responds, to change and encourages
innovation and creativity. We are committed to the process of continuous improvement in everything
we do.

Commitment to Employees

We are committed to our employees’ growth and development and we will nurture them in an
environment where excellence, integrity, teamwork, professionalism and performance are valued above
all else.
Commitment to Shareholders

We are committed to provide our shareholders with superior returns over the long term.

Board of Directors
Awards and Recognition
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)

Corporate Governance

BDO’s corporate governance is anchored on five (5) basic principles: accountability, fairness, integrity,
transparency and performance. This governance philosophy is deeply rooted in BDO’s corporate culture
as it believes that effective governance is a collective effort of its directors, officers and staff. As such,
the Bank upholds the highest standards of ethical behavior and responsible conduct of business as it
protects the interests of and creates value for its shareholders.

Corporate Social Responsibility

The Bank carries out its corporate social responsibility (CSR) through the BDO Foundation, the CSR arm
of BDO Unibank that promotes initiatives based on the Bank’s long-standing record of support to social
development. The Bank’s corporate social responsibility focuses on its disaster response advocacy that is
achieved through three main interventions, namely, relief, rehabilitation and reconstruction, particularly
in areas affected by natural or man-made disasters. The Bank’s CSR projects focus on the following:
relief operations in disaster-stricken provinces; rehabilitation/reconstruction of rural health centers;
construction of houses in resettlement areas, multi-purpose halls and school buildings; and support for
livelihood projects for families with disabled members (persons with disabilities).

Also, the BDO Foundation actively promotes volunteerism among its employees who help out in the
Foundation’s various activities that include, among others, community building, livelihood/skills training,
fund raising, and environmental/green initiatives. Through these, the Bank hopes that it is able to give
back to society and make a positive contribution to the broader community it serves.

Environmental Initiatives

BDO imposes limits and monitors exposure to certain industries, e.g., Gaming, Tobacco and Alcohol, as
well as restricts lending to other sectors under the Exclusion List (those deemed to have adverse or
harmful effects to the community and the environment).

Through its Sustainable Energy Finance (SEF) Program in cooperation with IFC, the Bank supports green
energy investments in Energy Efficiency (EE) and Renewable Energy (RE) projects. As well, BDO has a “Go
Green Campaign” implemented across the Bank and its branches that raises awareness on
environmental issues, espouses good environmental practices in the workplace and mobilizes volunteers
for conservation initiatives.
BUSINES ASPECT

BDO Unibank, Inc. operates as a full-service bank, which provides a complete array of industry products
and services, including lending, deposit-taking, foreign exchange, brokering, trust and investments,
credit cards, corporate cash management and remittances in the Philippines. It operates through the
following segments: Commercial Banking; Investment Banking; Private Banking; Leasing and Financing;
and Others. The Commercial Banking segment handles the entire lending corporate and consumer,
trade financing and cash management services for corporate and retail customers. The Investment
Banking segment provides services to corporate clients outside the traditional loan and deposit
products. The Private Banking segment offers traditional and non-traditional investment. The Leasing
and Financing segment handles direct leases, sale and leaseback arrangements and real estate leases.
The Other segment includes asset management, insurance brokerage, realty management, remittance,
accounting service, credit card service and computer service.

BUSINESS PROSPECTIVE