Philippine National Bank

Company Brief June 2019 Page

1 Company Introduction 3

2 Financial Highlights 9

3 Board of Directors & Senior Management 13

4 Awards & Citations 16

Page 2 About PNB

. Philippine National Bank is one of the country’s largest private universal banks in terms of assets, loans and deposits.

. It provides a full range of banking and other to its highly diverse clientele comprised of individual depositors, small and medium enterprises, domestic and international corporations, government institutions, and overseas Filipinos.

. PNB has 712 branches and 1,552 ATMs strategically located nationwide. The Bank maintains its position as the Philippine bank with the most extensive international reach with 71 overseas branches, representative offices, remittance centers and subsidiaries across Asia, Europe, the , and North America.

. Backed by over a century of stability and excellence, PNB looks forward to more years of serving its customers first.

Page 3 Products & Services

. PNB provides a full range of quality products and services to a wide customer base:

Branch Retail Institutional Trust & Treasury Remittance Banking Lending Banking Wealth Mgmt Services Services • Fixed .Sending/ • Deposit • Home Loans • Corporate & • UITFs Income Receiving Accounts • Auto Loans Middle • Personal Investments .Global • e-Banking • Salary Market Trust • Foreign Filipino Card Services Loans • Trade • Corporate Exchange .Overseas • Cash • SMEs Finance Trust Services Bills Management • OPHL • Financial • PNB Wealth • Interest Rate Payment Solutions Institutions Management Swaps

. Through its subsidiaries and affiliate, the Bank also engages in: Investment Stock Insurance Leasing Banking Brokerage

• Non-Life • Underwriting • Equities • Financial Insurance • Distribution of Trading leases • Life Insurance securities • Stock Market • Operating • Financial Research leases advisory • Receivable • Project finance discounting • Loan syndication Page 4 Major Milestones

2019: * 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 * PNB inked its First Syndicated Loan amounting to US$250M through its Tokyo Branch * PNB successfully issued a maiden peso bond offer which 2000s reached P13.87 B 2018: PNB successfully issued US$300 M of 5-Year Fixed Rate Senior Notes out of its US$1 B Medium Term Note Program 2014: Completed its stock right offering of common shares raising P11.6 B in additional capital 2013: Merged with Allied Banking Corporation (ABC) 2000: Group became the single biggest private stockholder of PNB 1999: Entry of the LT Group 1990s The Group acquired around 35% of PNB’s total outstanding capital stock and joined the Bank’s Board of Directors.

1980s First in the

…

1916 Establishment of PNB Page 5 PNB Subsidiaries and Affiliate

Philippine National Bank

Domestic Overseas

PNB Intl. Investment PNB Savings Bank Corp. 100% 100% PNB Capital and PNB Remittance Investment Corp. Centers Inc. 100% 100% PNB Holdings Corp. PNB RCI Holding Co. Ltd. 100% 100% PNB General Insurers PNB Remittance Co. Co. Inc 100% 100% PNB Securities Inc. PNB Remittance Co. Nevada 100% 100% PNB-IBJLIBJL Leasing and PNB Global Remittance Finance Corp. & Fin’l Co. (HK) Ltd. 75% 100% PNB-IBJL Eqpt Rentals Corp. PNB Europe PLC 75% 100% Allied Banking Corp. Affiliate: (HK) Ltd. Allianz PNB Life 51% Allied Commercial Bank Insurance Inc. (Xiamen) 44% 99.04% Page 6 Market Reach

Global Network

Asia & 71 offices in 16 Oceania - 17 Europe - 5 countries North America - 30 538 correspondent Middle East - 19 banks

Domestic Network Branch Distribution:

62% outside Metro 712 branches in the Philippines

1,552 ATMs nationwide

As of Jun 2019 Page 7 Page

1 CompanyIntroduction 3

2 Financial Highlights 9

3 Board of Directors & Senior Management 13

4 Awards & Citations 16

Page 8 NET INCOME & BALANCE SHEET

Net Income (without ROPA) Balance Sheet Php Millions Php Billions

3,908 45% 24% 1,087 2,701 877

1H 2018 1H 2019 1H 2018 1H 2019

. Strong profitability boosted by solid . Steady growth in assets was driven by growth in core income & increase in sustained momentum in core lending trading gains and deposit taking activities. . Reported Net Income of P3,969 M in June 2019 declined by 27% from

P5,441 M in June 2018 Page 9 1H19 P&L

PNB Conso (in PHP million) 1H 2019 1H 2018 % Change Interest Income 23,669 16,676 41.9% InterestExpense 8,968 3,620 147.7% NET INTEREST INCOME 14,701 13,056 12.6% Fee-Based and Other Income 4,280 7,670 -44.2% Net Service Fees and Commission Income 1,856 1,677 10.7% Other Income 2,424 5,993 -59.6% TOTAL OPERATING INCOME 18,981 20,725 -8.4% Admin and Operating Expense 13,022 11,725 11.1% Income Before Provisions 5,959 9,000 -33.8% Provision for impairment and credit losses 809 1,236 -34.5% Provision for Income Tax 1,216 2,033 -40.2% NET INCOME FROM CONTINUING OPERATIONS 3,934 5,731 -31.4% NET INCOME FROM DISCONTINUED OPERATIONS 35 (290) 87.9% NET INCOME 3,969 5,441 -27.1% Return on average equity (ROE) 6.0% 9.0% Return on average assets (ROA) 0.8% 1.3% Net Interest Margin (NIM RATE) 3.2% 3.4% Page 10 Cost efficiency ratio 68.6% 56.6% 1H19 BALANCE SHEET

PNB Conso (in PHP million) 1H 2019 1H 2018 % Change Cash / Due from BSP & Other Banks 180,029 144,451 24.6% Investment Securities 242,049 140,978 71.7% Loans and Receivables 594,145 529,633 12.2% Property & Equipment 21,420 19,177 11.7% Investment Properties 13,516 13,479 0.3% Other Assets 36,265 28,863 25.6% TOTAL ASSETS 1,087,424 876,581 24.1% Deposit Liabilities 775,120 672,610 15.2% Bonds Payable 67,223 15,886 323.2% Bills & Acceptances Payable 72,680 27,688 162.5% Other Liabilities 36,398 36,077 0.9% TOTAL LIABILITIES 951,421 752,261 26.5% TOTAL EQUITY 136,003 124,320 9.4% TOTAL LIABILITIES AND EQUITY 1,087,424 876,581 24.1% Loans/Deposits 76.5% 77.1% Total CAR 14.0% 15.1%

Page 11 Page

1 CompanyIntroduction 3

2 Financial Highlights 9

3 Board of Directors & Senior Management 13

4 Awards & Citations 16

Page 12 Board of Directors

Florencia G. Tarriela Edgar A. Cua Carmen K. Tan Chairman/Independent Director Independent Director Director • Serves as director of multiple PNB • Independent Director of PNB Capital and • Director of MacroAsia Corp. subsidiaries Investment Corp. • Director of LT Group, Inc. • Director of Bankers Association of the • Independent Director of Allied Commercial • Director of PAL Holdings, Inc. Philippines Bank, Xiamen • Former Undersecretary of Finance • Director of Davao Unicar Corp.

Felix Enrico R. Alfiler Estelito P. Mendoza Lucio C. Tan Vice Chairman/Independent Director Director Director • Serves as director of multiple PNB • Chairman of Prestige Travel, Inc. • Chairman and CEO of LT Group, Inc. subsidiaries • Director of , Inc. • Chairman and CEO of PAL Holdings, Inc. • Former Director of the BSP • Practicing lawyer for more than 60 years • Chairman and CEO of MacroAsia Corp.

Jose Arnulfo “Wick” A. Veloso Christopher J. Nelson Michael G. Tan President and CEO Director Director • Director of Allianz-PNB Life Insurance, Inc. • Executive Chairman of the British • President and COO of LT Group, Inc. • Director of Philippine Dealing & Exchange Chamber of Commerce of the Philippines, • Director & Treasurer of PAL Holdings, Inc. Corp., Philippine Securities Settlement Inc. • Director of Victorias Milling Company, Inc. Corporation, Asian Bankers Association, • Chairman of Lux Et Sal Corp. and Bancnet, Inc. • Trustee of the American Chamber • Former President and CEO of HSBC Foundation of Commerce of the Philippines, Inc.

Florido P. Casuela Federico C. Pascual Lucio K. Tan, Jr. Director Independent Director Director • Chairman of PNB Securities, Inc. • Serves as director of multiple PNB • President/COO of , Inc. • Vice Chairman of PNB SavingsBank subsidiaries • Director of LT Group, Inc. • Senior Adviser of the Bank of Makati • Former President and General Manager of • Director of PAL Holdings, Inc. • Former President of Landbank of the Phil., GSIS & Surigao Micro Credit Corp. • Former Director/President & CEO of Allied Banking Corp.

Leonilo G. Coronel Cecilio K. Pedro Vivienne K. Tan Independent Director Director Director • Independent director of PNB Savings • EVP/Treasurer and Chief Administrative • Independent Director of Megawide Bank Officer of Philippine Airlines Construction Corp. • CEO/President of Lamoiyan Corp. • Board Advisor of LT Group, Inc. • Independent Director of DBP-Daiwa Capital • Director of Philippine Business for Social • Founding Trustee of Philippine Center for Markets Phil. Progress Entrepreneurship (Go Negosyo) • Former Executive Director of BAP Page 13 Senior Management

Jose Arnulfo “Wick” A. Veloso

President and CEO of the Bank since 2018

Cenon C. Audencial Jr. Roberto D. Baltazar Jovencio DB. Hernandez Chester Y. Luy EVP EVP EVP EVP Head of the Institutional Head of Global Banking and Head of Marketing & Brand Head of the Strategy Sector Banking Sector Markets Sector Management Sector and Wealth Management Group

Aida M. Padilla Nelson C. Reyes Bernardo H. Tocmo Isagani A. Cortes EVP EVP EVP FSVP Head of the Enterprise Chief Financial Officer Head of the Retail Chief Compliance Officer Services Sector Banking Sector

Jose German M. Licup Maria Paz D. Lim Schubert Caesar C. Manuel C. Bahena, Jr. FSVP FSVP Austero SVP Chief of Staff to the Corporate Treasurer SVP Chief Legal Counsel President and CEO Head of the Human Resource Group

Claro P. Fernandez Marie Fe Liza S. Jayme Michael M. Morallos Roland V. Oscuro SVP SVP SVP SVP Head of Public Affairs Head of Operations Group Head of the Information Chief Information Security Group Technology Group Officer

Maria Teresa C. Velasco Nanette O. Vergara Joy Jasmin R. Santos SVP SVP FVP Deputy Group Head of Chief Credit Officer Chief Trust Officer & Head Wealth Management Group of Trust Banking Group

Martin G. Tengco Jr. Simeon T. Yap FVP FVP Chief Audit Executive Chief Risk Officer Page 14 Page

1 CompanyIntroduction 3

2 Financial Highlights 9

3 Board of Directors & Senior Management 13

4 Awards & Citations 16

Page 15 Recent Awards

International Finance Awards (2019) “Fastest Growing Bank for Consumer Loans Philippines 2018”

The Asset triple A Country Awards (2019) • “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)

Asian Banker Philippine Country Awards (2018) “Consumer Finance Product of the Year” (PNBSB’s Smart Personal Loan)

Page 16 Recent Awards

Recognized by the Philippine Institute of Corporate Directors (2018) as among the top-performing publicly listed companies under the ASEAN Corporate Governance Scorecard

Asian Banking & Finance Retail Banking Awards (2017) “Consumer Finance Product of the Year – Philippines” and “Service Innovation of the Year – Philippines” (PNBSB) “Asian Banking Finance Corporate & Investment Banking Awards” “Best Debt Deal of the Year – Philippines”

Philippine Dealing System Awards (2019) “Ranked Top 3 Issue Managers/Arrangers (Investment House Category)”

Investment House Association of the Philippines (2019) “Best Small-cap Equity Deal”

Page 17 Disclaimer

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.

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