Bank of the

Philippines Island
(BPI)
Presented by: Niña Marie Tadifa
4th year / BSBA – FM
Special topics in Finance
 Table of content
● Background of the bank

● Strategic analysis

● Operational analysis

● Performance improvement

● Product / Market analysis

● Customer analysis

● Competitor analysis

● Balanced scorecard assessments

BACKGROUND OF THE BANK
• BPI or the Bank of the Philippine Islands is the first bank in the
Philippines and in the Southern Asian Region.
• Founded on August 1, 1851
• It is known as El Banco Español Filipino de Isabel II
• The first branch of BPI outside Manila was open in Ilo-Ilo on March
15, 1897
• The bank performed many functions
The first branch of BPI outside Manila was open in Ilo-Ilo on March
15, 1897
Background of the Bank
• It is the first government bank in the Philippines bank during the Spanish era.
• First deposit in the bank was also done that day by a man named
FULGENCIO BARRERA. 3 days after a Chinese named TADIAN become the
first borrowing client in the bank in the form of promissory notes.
• BPI offers a wide rage of financial products and solutions that serve both retail
and corporate clients.
• First currency to printed is on May 1, 1852.
• Starting 1970 BPI involved with many mergers and acquisitions.
• In 1982 BPI become the universal bank
First currency to printed is on May 1, 1852.
 STRATEGIC ANALYSIS
The bank has five (5) strategic priorities
1. Ensure sustained growth in profitability
2. Accelerate the bank’s digital transformation
3. Human resources as a strategic element
4. Increased efficiency
5. Aim to consolidate the strong reputation of BPI
Strategic Analysis
STRENGTHS
• Has a multi channel distribution network comprising 600+ retail branches, 40
investment center, commercial partners, and home banking services.
• Has a strong customer base with approx. 2 million customers.
• It is the only listed bank which has not issued state guaranteed debt to manage
liquidity.
• 10,000 people work as a part of the bank
WEAKNESSES
• Its net operating income has been decreasing over the past few years
• It is not completely free from the credit risks with respect to customers and
counterparties.
Strategic Analysis
OPPORTUNITIES
• It towards mobile banking. It provides more apps for android and IOS devices.
• Can offer more products in the personal banking segment as it is a growing
segment
• More global tie-ups can boost the presence of the brand abroad.
THREATHS
• Erosion of market capital as the stock prices have been decreasing over
negative market sentiment
• There is a tight competition as other banks.
 OPERATIONAL ANALYSIS

BPI was able to grow total assets by 5.1%, largely funded by deposits
which grew 7.2% annually. The Bank’s income grew at a compounded
annual rate of 5.6% in the past three years despite the significantly higher
impairment losses recorded in 2020, respectively while operating
expenses grew at a slower rate of 6.4% over the same period.
 PERFORMANCE
IMPROVEMENT

BPI works by identifying the operations, employee skills or enabling

technologies, more efficient workflow and overall business growth.
Performance analysis
PROFITABILITY
• Another quarter of strong profitability, further boosted by net gains on sales
of property
• Improved profitability with ROE at 13.98%
GROWTH
• Notable increase in customer base
• Sustained improvements in customer engagements
• Strengthened digital capabilities through platforms, partners and products
BALANCE SHEET
• Accelerating growth in loans and deposits, highest since the pandemic
Performance analysis
• BPI was elected for the first time the “best bank in Portugal” by
euro magazines under the Euro Money Awards Initiative.
• Best Sustainable Bank in the Philippines Finance Asia Country
Awards 2021
• Best Investment Bank in the Philippines, Finance Asia Country
Awards 2021
• Best Trade Finance Bank, Alpha Southeast Asia Awards
• Highest Premium Volume Growth 2021, Visa Credit Cards
PRODUCT/MARKET ANALYSIS

BPI has a wide range of savings accounts that fit the invidual needs to
enjoy maximum convenience in safe keeping, managing and growing
funds.
Product analysis
REGULAR SAVINGS – a savings accounts with electronic banking convenience.
PAMANA SAVINGS – a card based savings account that gives free life insurance
worth 3x your account balance.
MAXI SAVER – a card based savings account that lets you earn more as you save
more. Getting an additional 0.125% interest.
MY SAVE UP – an all digital BPI savings account that you can exclusively open
using the Gcash app.
PADALA MONEYGER – an affordable savings account for a safe and secure way
of managing remittance from abroad.
CUSTOMER ANALYSIS

BANK CREDO
It holds that BPI’s first responsibility is to our clients.
Customer analysis
• They will focus on the excellence of their service.
• For asset management, they will employ highly trained and experienced
investment professionals.
• In retail lending, the bank promotes easy access to its retail lending products
• For corporate lending, they will offer a diverse range of lending products to
corporate clients.
• In 2015, the bank, established its Customer Experience Management Office
(CXMO). It is created the CAP to build an enabling environment and to define
safety net for recognition and protection of consumer rights.
 COMPETITOR ANALYSIS

BPI’s corporate governance – our framework which guides how decisions

are made and how we deal with various interests and a source of
competitive advantage and is vital to the creation and protection of long
term value.
Competitor analysis
• As one of the most trusted organizations in the country, their goal is to
continue that history of trust for our clients, customer, and stakeholders.
• They recognize the importance of culture as a source of competitive advantage.
• They continuously work closely and constructively with regulators, keenly
aware of the value and importance of transparency in such relationship.
• They will work on adding cash accepts machines available across the country.
 BALANCED SCORECARD
ASSESSMENT
Under the ASEAN Capital Market Forum, of which the
SEC is a regular member, six ASEAN economies have
adopted an ASEAN Corporate Governance Scorecard to
rate compliance with existing corporate governance rules,
regulations, and best practivces of ASEAN publicy listed
companies.
Balance Scorecard Assessment
SCORING METHODOLOGY
Rights of shareholders 10%

Equitable treatment of shareholders 10%

Roles of shareholders 15%

Disclosure and transparency 25%

Responsibilities of the board 40%

We are strongly supportive of initiatives that strengthen
regional capital market development, as well as regional
economic integration. The bank has merited considerable
success and continues to register marked improvement in its
scorecard performance. For BPI, an important result of
successful corporate governance is a strong balance among
responsible direction-setting, performance driven culture, and
discipline in risk taking
 “A healthy banking system is one of
the vital part of a nations foundation”
– Hendrith Smith
 REFERENCES
https://www.mbaskool.com/brandguide/banking-and-financial-services/7971-banco-bpi.html
https://www.bpi.com.ph/aboutbpi/investor-relations/financial-statements
https://www.bpi.com.ph/aboutbpi/investor-relations/financial-highlights
https://www.bpi.com.ph/bank/savings/regular-savings
https://www.bpi.com.ph/bank/savings/pamana-savings
https://www.bpi.com.ph/bank/savings/maxi-saver
https://www.bpi.com.ph/bank/savings/mysaveup
https://www.bpi.com.ph/padalamoneyger
https://www.bpi.com.ph/governance/financial-consumer-protection/clients
https://www.bpi.com.ph/governance/esg/asean-cg-scorecard
THANK YOU 