Years of Excellence Through People, Processes, Products 20 and Policies Annual 2017 Report

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Years of Excellence Through People, Processes, Products 20 and Policies Annual 2017 Report YEARS OF EXCELLENCE THROUGH PEOPLE, PROCESSES, PRODUCTS 20 AND POLICIES ANNUAL 2017 REPORT Through the years, Robinsons Bank has played a significant role in the banking industry, offering a wide array of innovative financial services with all the convenience of modern technology. It has earned a solid measure of trust and confidence, gaining wide preference as a commercial bank with over two decades of commitment to fulfill the community’s changing needs. Robinsons Bank continuously mounts into greater heights in making banking easier for its clients in every possible way, providing its customers a wider boutique of product and service offerings, flexible financial solutions, branch expansions, and digital improvements. Launch of Personal Online Milestones Banking & Mobile App 125 Acquired the local commercial BRANCHES banking unit of Royal Bank of Scotland (Phils.) Roll out of the Bank’s strategic plan Roadmap 2020. Initial Phase 2 of Roadmap 2020: Phase: Capacity Building Core Income Growth 150* BRANCHES Phase 3: Launch of Robinsons ® Bank UNO Mastercard ATM 22 76 ® * YEARS OF Established as a and Robinsons Bank DOS 253 BRANCHES Savings Bank BRANCHES Mastercard *As of May 31, 2018 EXCELLENCE 1997 2002 2010 2012 2015 2016 2017 THROUGH PEOPLE, Conversion to a Capital Infusion of full-fledged Php 6.4B PROCESSES, PRODUCTS 1 Commercial Bank 146 AND POLICIES BRANCH P BRANCHES Acquired Legazpi Savings Bank Launch of Robinsons Bank (LSB) which has 11 branches Visa Debit Card Acquired 20 branches 56 of ABN AMRO Bank, Inc. 136 BRANCHES BRANCHES Oversubscribed LTNCD issuance of Php 4.1B Robinsons Bank Celebrates 20 Years! Robinsons Bank has always been a bank for the people. income as we have reached the Php 100 billion mark in our We define success as how we make a difference to our total resources. customers, communities, and employees. This year marks Robinsons Bank’s anniversary logo captures the our 20th anniversary. 20 years of serving the community and power and passionate upward movement of the company giving the best service to our customers. in strengthening its core components: people, processes, Pivotal to the Bank’s growth was the successful products, and policies. implementation of the Roadmap 2020. The Roadmap 2020 We continue towards our goal to be the Bank of Choice by covers the implementation of the Bank’s strategies in three continuously improving on our products and services to meet phases that have been pivotal to Robinsons Bank’s sturdy core our customers’ changing needs. Contents 01 Milestones 86 Board of Directors Profile We are the Bank of Choice 03 Vision, Mission and Core Values 90 Senior Advisory Board driven to fulfill your 04 Introduction of Bank’s Brand 92 Key Officers vision changing needs. 06 Who We Are 94 Organizational Structure 08 Ownership Structure of the Bank 96 Management Committee 10 Consolidated Financial Highlights 102 List of Officers 14 Message from the Chairman and 104 Products and Services from the President & CEO 106 Branch Directory 22 Operational Highlights 112 Statement of Management’s Responsibility Aiming to be better everyday. 38 Corporate Social Responsibility 113 Independent Auditor’s Report 116 42 Corporate Governance Financial Statements Committed to provide to the: 60 Risk Management 122 Legazpi Savings Bank Customers - best experience 82 Board of Directors 132 JG Summit Businesses mission Employees - winning culture Owners - outstanding returns Community - responsive organization about the cover Robinsons Bank’s 20 years of excellence has performed a momentous Concern leap through its people, processes, products and policies. Over two decades, the Bank takes pride of its sustained growth momentum, following the Excellence successful implementation of its strategies. The robust developments core Leadership and achievements in 2017 are testaments of the Bank’s sustained determination to be among the top banks in the country. Steered by its Teamwork five-year strategic thrust Roadmap 2020, the Bank completed another values Integrity milestone alongside the strong domestic economic performance with major initiatives still in the pipeline. Today, Robinsons Bank is rising up to Change greater challenges, expanding and moving forward confidently to fulfill its vision to be “the Bank of Choice.” 2 Robinsons Bank Annual Report 2017 3 Bank’s Brand obinsons Bank has maintained a brand philosophy of commitment to the community for over 20 years – The financial organization mounts on the vision of being the Bank of Choice and carries on initiatives of a drive of fulfilling its customers’ changing needs. In line with JG Summit Conglomerate’s endeavor of creating opportunities for more people to experience the rewards of having a bank that takes care of their needs. leading the country to global competitiveness and making life better for every Filipino, the institution Through its dedication to provide the best experience, winning culture, outstanding returns, and as a responsive continues to uphold its aim to be better every day. organization, the Bank embraces and extends more than just being a financial arm but builds relationships beyond banking. Photo by Enrique Emmanuel S. Ruiz de Luzuriaga 4 Robinsons Bank Annual Report 2017 5 BUSINESS MODEL: Robinsons Bank aims to be one of the top banks in the Philippines, offering innovative and competitive financial products and services to its clients. To achieve this, the Bank has set a five-year strategic plan entitled “Roadmap 2020” in 2015 to guide all its employees and units in achieving that goal. The roadmap covers: refocusing of strategies; rebranding; structure reorganization of key support units; process improvement; expanding lending and branch network; product development; and fully explore business opportunities within its target markets. The Roadmap 2020 has three phases namely: (1) capacity building, (2) core income growth and (3) expanded business ventures. The Bank’s key strategic thrusts for 2018 include (1)generating core income, (2) engineering new products and services to generate fee income, which includes bancassurance and the credit card business; (3) accelerating digitization through enhanced IT infrastructure to support new digital products, Robinsons Bank Personal Online Banking and mobile application; and (4) reaching greater market coverage Who We Are by opening 19 new branches and installing 55 new ATMs. 6 Robinsons Bank Annual Report 2017 7 Ownership Structure of the Bank Robinsons Bank is the financial services arm of . and 40% owned by Robinsons Retail Holdings, Inc., the JG Summit Group of companies. The Bank is a listed company since November 2013. “ 60% owned by JG Summit Capital Services Corp. “ P CORE INVESTMENTS GROWTH BUSINESSES CORE BUSINESSES 8 Robinsons Bank Annual Report 2017 9 Consolidated Financial Highlights 13.6% 7,869 23.5% Others 13,583 at ≤5% 8.5% Share Real 4,916 Estate Activites 100,000 15,000 48.2% Transportation 120,000 42.2% 60,000 and Storage 35.2% 1.0% 100,000 80,000 12,000 50,000 Electricity, Gas, Steam, and 80,000 40,000 Airconditioning Supply 60,000 9,000 Wholesale 9.4% and Retail 5,418 Trade 60,000 30,000 16.1% Financial 9,336 40,000 6,000 and Insurance 40,000 * 20,000 Activities Personal 20,000 3,000 150 Manufacturing 20,000 10,000 8.5% Consumption 4,893 11,989 11,968 12,093 43,668 63,295 89,980 27,569 38,897 57,654 57,659 77,612 104,913 BRANCHES 0 0 0 0 11.4% 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 9.1% 6,571 5,234 TOTAL ASSETS DEPOSIT LEVELS CAPITAL FUNDS LOAN PORTFOLIO-NET LOAN CONCENTRATION PER INDUSTRY (In Php millions) (In Php millions) (In Php millions) (In Php millions) (In Php millions) 253* ATM GROSS INCOME OPERATING EXPENSES NET INCOME NON-PERFORMING LOANS NPL COVERAGE CAPITAL ADEQUACY RATIO (In Php millions) (In Php millions) (In Php millions) (In Php millions) 32.5% NET INTEREST INCOME NON-INTEREST INCOME 21.4% 19.6% 19.0% 4,000 3,461 3,500 350 * 21.6% 24.2% 3 CONSOLIDATED 3,500 2,909 3,000 300 MICRO BANKING 100.6% 2015 2016 2017 3,000 VOLUME 2,500 250 RATIO 2,520 2,500 2,000 200 1,200 4.0% 34.4% 2,000 1,000 1,500 150 80.2% 1,500 800 2.9% 24.4% 1,000 100 600 1,000 2,129 2,421 2,983 19.8% 400 68.8% 500 500 50 200 2,280 2,565 3,120 144 247 307 391 489 478 1,118 1,139 1,097 1.9% SOLO 0 0 0 0 2015 2016 2017 2015 2016 2017 2015 2016 2017 *As of May 31, 2018 2015 2016 2017 2015 2016 2017 2015 2016 2017 10 Robinsons Bank Annual Report 2017 11 Consolidated Financial Highlights CONSOLIDATED PARENT BANK 2016 2017 2016 2017 Common Equity Tier 1 Capital 10,570 10,475 Common Equity Tier 1 Capital 10,270 10,243 Additional Tier 1 Capital - - Additional Tier 1 Capital - - Tier 1 capital 10,570 10,475 Tier 1 capital 10,270 10,243 Tier 2 capital 331 491 Tier 2 capital 318 478 Total qualifying capital 10,901 10,966 Total qualifying capital 10,588 10,721 Credit RWA 46,439 49,861 Credit RWA 38,931 48,542 Market RWA 222 1,340 Market RWA 223 1,340 Operational RWA 4,355 4,696 Operational RWA 4,224 4,365 Total RWA 51,016 55,897 Total RWA 43,378 54,247 Common Equity Tier 1 Ratio 1 20.72% 18.74% Common Equity Tier 1 Ratio 1 23.68% 18.88% Additional Tier 1 Ratio 0.00% 0.00% Additional Tier 1 Ratio 0.00% 0.00% Tier 1 capital ratio 20.72% 18.74% Tier 1 capital ratio 23.68% 18.88% Tier 2 capital ratio 0.65% 0.88% Tier 2 capital ratio 0.73% 0.88% Risk-based capital adequacy ratio 21.37% 19.62% Risk-based capital adequacy ratio 24.41% 19.76% CONSOLIDATED PARENT BANK 2016 2017 2016 2017 Profitability Profitability Total Net Interest Income 2,420,561,759 2,982,652,718 Total
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