Investor Presentation

Your Success is our Business

June 2016 Table of Contents

Company Profile

Economic Environment

Key Investment Merits

Financial Highlights

Management & Board of Directors 1 Strengths Company Profile

2 Snapshot of China Bank

Long history as the oldest privately owned bank in the , established in 1920

Listed since the establishment of the Stock Exchange in 1927

Strong presence in the entrepreneur, middle market and business segments

Longest relationship with Chinese-, serving this community up to the 4th generation

3 Primary Business

A. Deposits & Related Services B. Internet Banking and Mobile Banking Services (Retail & Corporate)

Corporate Consumer Wealth Management Corporate, Commercial & SME Consumer loans Trust and investment lending (mortgages, vehicle, management personal, teacher loans) Cash management Credit cards Wealth management, Private Banking Factoring Remittances Life insurance and investments (MCBLife) Investment Banking (China Bank Capital Corp Treasury and Foreign Exchange Trading Non life insurance (China Bank Insurance Brokerage)

4 Bank Milestones

Expand portfolio in SME, MME and Consumer segments further enhanced by recent strategic acquisitions

1920 1927 2007 2012 2013 2014 2015 2016

Listed in Manila Stock Exchange Increased stake in China Bank JV to 40% Securities Corp Acquired Manila Bank CBC Assets with 75 branch licenses One (SPC), Inc and renamed to

Acquisition Bancassurance joint venture with 5% stake

5 Bank Strategy

Continue network expansion to increase customer touch points and grow customer base

China GDP No. of China Bank % Share Share Branches Bank Savings Total Total 2015 Metro 183 62 245 47% 37% Manila Luzon 92 84 176 33% 37% Visayas 53 10 63 12% 12% Mindanao 34 6 40 8% 14% Total 362 162 524 100% 100%

900 771 800 CHIB CBS 740 661 700 PDB ATM 561 524 600 511 517 475 470 431 500 383 445 366 376 361 400 316 276 293 250 269 300 216 148 188 200 141

100 0 6 2004 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2Q2016 Comprehensive Financial Services Platform

China Bank‘s organization anchored on three engines of growth:

1 2 3 Savings Bank & Other Relationship Banking Financial Markets Business Units

Retail Banking Lending China Bank Business Segment Treasury Savings, Inc. - SME Institutional - Consumer Banking China Bank Capital Corp - Corporate Manulife-China - Investment Banking Bank Life - Commercial - Securities Brokerage Assurance Corporation (MCBLife)

China Bank Consumer Private Banking Insurance Banking Brokers, Inc. - Housing/Auto - Remittance - Credit Card Trust

7 Economic Environment

8 Economic Environment— Philippines

Sustainable GDP growth 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 1S15 1S16 GDP Gwt 5.6 6.7 5.5 6.6 5.0 5.8 6.1 6.5 6.8 7.0 5.5 6.9

Expenditure side: Private Consumption up 7.2% ; Production side: Services up 8.0%; Industry up 7.9% Capital Formation up 27.1%

9 Economic Environment— Philippines

Benign, stable inflation 6.0

5.0

4.0 4.0

3.0 2.0 2.0 1.9 1.9 1.0 Core Inflation Headline Inflation Hi-end Target Low-end Target - 2012 2013 2014 2015 2016

Consumption supported by growth in remittances and BPO revenues

10 Economic Environment— Philippines

Philippine investment grade affirmed as new Promising growth areas outside of Metro Manila administration is seen to maintain majority of current CAGR 2010-2015 economic policies XIII - Caraga 8.3% VII - Central Visayas 7.2% XI - Davao 6.9% III - Central Luzon 6.6% V - Bicol 6.3% NCR 6.3% Northern Mindanao 6.1% XII - SOCC 6.1% VI - Western Visayas 6.0% II - Cagayan 6.0% Opportunity for the banking industry: Philippines IX - Zamboanga 6.0% entering a ―demographic sweet spot‖ I - Ilocos 5.6% IV-A CALABARZON 5.3% Phase 1: Initial decline in Phase 2: More working age IV-B MIMAROPA 3.7% infant mortality population (15-64 yrs old) CAR 2.1% but fertility remains high ARMM 1.1% VIII - Eastern Visayas 0.2% PHL= 5.9%

PPPs in the pipeline + 1.5% to GDP growth

No. of Projects Project Cost (in $Bn) Status

12 3.7 Awarded 15 14.6 Bidding 5 NEDA Approval 19 Others

As of July 2016 11 Source: PPP Center Source: U.S. Census Bureau. International Database. July 2015 Economic Environment— Philippines New administration’s 0 + 10-point economic agenda seen to promote inclusive growth

Law and order: stamp out criminality, drugs, smuggling, kidnapping, address traffic crisis, honor sanctity of contracts, etc.

Continue and maintain current Increase competitiveness and macroeconomic policies, the ease of doing business: including fiscal, monetary, and This effort will draw upon trade policies. successful models used to attract business to local cities (e.g. Davao), and pursue the Institute progressive tax relaxation of the Constitutional reform an more effective tax restrictions on foreign ownership, collection, indexing taxes to except as regards land inflation. A tax reform package ownership, in order to attract will be submitted to Congress foreign direct investment by September 2016. Accelerate annual infrastructure spending to account for 5% of GDP, with Public-Private Partnerships playing a key role. 12

Source: The Philippine Star

Economic Environment— Philippines New administration’s 0 + 10-point economic agenda seen to promote inclusive growth

Promote rural and value chain Promote science, technology, development toward increasing and the creative arts to agricultural and rural enterprise enhance innovation and productivity and rural tourism creative capacity towards self- sustaining, inclusive development Ensure security of land tenure to encourage Improve social protection, investments, and address including government’s bottlenecks in land Conditional Cash Transfer management and titling program, to protect the poor agencies against instability and economic shocks

Invest in human capital Strengthen implementation of development, including health Responsible Parenthood and and education systems, and Reproductive Health Law to match skills and training to meet enable especially poor couples the demand of businesses and to make informed choices on the private sector financial and family planning

13

Source: The Philippine Star

The Philippine Banking Industry

Even as loans showed healthy growth… … asset quality continued to improve … 16% (gross of RRP) 17% (net of RRP)

M3 up 12%

… with further room to grow (PHL LDR 69% as … supported by healthy capitalization… of May 2016)…

111 112 114

83 77 74 77

14 Competitive Landscape

Private Banks – CHIB No 6 in Assets, No 5 in Loans, Deposits

ASSETS LOANS (Net) DEPOSITS CAPITAL ROE Institution Mkt Mkt Mkt Amt Amt Amt Amt Mkt Share Jan-Jun Jan-Jun Branches (June 2016) Share Share Share (in P Bn) (in P Bn) (in P Bn) (in P Bn) (%) '16 '15 (%) (%) (%) BDO 2,158 17.61% 1,404 21.43% 1,771 18.90% 211 15.81% 13.12% 13.23% 1,052 MBT 1,723 14.06% 961 14.66% 1,261 13.45% 200 14.96% 9.25% 10.97% 954 BPI 1,573 12.84% 955 14.58% 1,328 14.17% 157 11.75% 16.19% 12.69% 824 PNB 705 5.75% 397 6.06% 535 5.71% 105 7.83% 8.06% 7.13% 670 SECB 613 5.00% 269 4.10% 301 3.22% 94 7.02% 13.64% 18.83% 272 CHIB 552 4.50% 339 5.18% 463 4.94% 56 4.21% 10.74% 8.67% 524 RCBC 500 4.08% 297 4.54% 320 3.41% 60 4.48% 8.81% 9.28% 477 UBP 431 3.52% 199 3.04% 337 3.59% 57 4.26% 12.93% 10.69% 300 EW 258 2.10% 173 2.64% 206 2.20% 32 2.42% 9.78% 7.79% 438 Gov't Banks 1,780 14.53% 670 10.23% 1,452 15.49% 135 10.12% LBP 1,288 10.51% 479 7.32% 1,128 12.03% 89 6.68% 19.35 18.74 361 DBP 491 4.01% 190 2.91% 324 3.46% 46 3.41% 10.07 9.20 105 Foreign Banks 1,051 8.58% 487 7.44% 663 7.07% 115 8.59% Other Local Banks 910 7.42% 400 6.11% 735 7.84% 114 8.54% TOTAL 12,254 100% 6,551 100% 9,371 100% 1,335 100% 15 Key Investment Merits

16 Key Investment Merits

. Established strength in affluent Chinese-Filipino business segment . Strong balance sheet with sustainable growth . Diversified and well collateralized loan portfolio . Improving asset quality & loan loss coverage . Funding – strong brand franchise / retail base . Healthy capital position . Well diversified income stream, effective cost management , growing distribution network supported by robust infrastructure . Sustained delivery of shareholder returns . Strong shareholder support . Experienced & competent management team 17

Key Investment Merits

Established strength in affluent Chinese-Filipino business segment

Loyal and highly valuable customer Predominantly focused on the base SME/MME segments

Multi-generational relationships Agile and entrepreneurial mindset

Sustainable and profitable niche client relationships 18 Financial Highlights – 1H2016

Fee-Based Income (PBN) Net Income (PBn) Net Interest Income (PBN) 7.95 2.90 3.27

2.51 2.05 0.99

0.35 7.42 1.007 0.868

0.835 0.902

1S2015 1S2016 1S2015 1S2016 1S2015 1S2016 Others Service Charges, Fees & Comm Trading & Securities

Assets (PBN) Loans Net (PBN) Deposits (PBN) 470 462.62 52% 324.03 460 555.55 450 52% 440 51.67% 430 420 51% 478.99 289.32 410 399.15 400 390 50.66% 51% 380 370 360 50% 1S2015 1S2016 1S2015 1S2016 19 1S2015 1S2016 Deposits CASA to Total Deposits Ratio

8 Strong balance sheet with sustainable growth

Organic growth and strategic acquisitions 556 Total Assets (PHP in B) 527 77 479 471 76

414 24 15 21

324 9 257 262 4 2 478 451 399 403 409 315 255 258

2010 2011 2012 2013 2014 2015 2Q2015 2Q2016 China Bank China Bank Savings Planters Development Bank 20 Strong balance sheet with sustainable growth

Less reliance on investment securities (volatile / non recurring)

Assets Mix (PHP in B)

556 527

471 479 28% 414 28% 26% 25%

324 31% 257 262 21% 58% 25% 21% 59% 62% 60% 53% 59% 46% 55%

29% 24% 20% 16% 12% 13% 15% 14%

2010 2011 2012 2013 2014 2015 2Q2015 2Q2016 Investment Securities Net Loans Others 21 Strong balance sheet with sustainable growth

Healthy Liquidity

75.00% 72.73% 69.90% 70.52% 70.00% 67.20% 70.04% 62.25% 64.50% 65.00% 63.00% 60.99% 62.52% 60.00% 57.99% 55.33% 58.33% 55.00% 61.63% 55.39% 58.64% 58.80% 50.00% 53.31% 45.00% 40.00% 2011 2012 2013 2014 2015 Jun-16

Loans (Net) to Total Assets Loans (Net) to Customer Deposits Loans (Net) to Stable Funds

Source: Capital Intelligence Rating report where; Customer Deposits, Savings, Demand, Time Stable funds - total customer deposits + medium &long term funding + subordinated debt + hybrid capital + free capital (total capital-subsidiaries & affiliates-fixed assets)

22 Diversified loan portfolio -- room to grow consumer portfolio

Loans growth faster in consumer segment (Top 3 banks have 25% Gross Loans (PHP in B) consumer) 5-yr CAGR Corporate Commercial Consumer 2010-2015 331 317 Consumer 298 29% 297 50 15% 48 15%

43 43 14% 14% 228 Commercial 13% 198 30 146 12% 142 44% 128 43% 45% 133 45% 23 12% 154 89 18 12% 39% 126 81 14 11% 41% 47 31% Corporate 35 28% 11% 127 127 135 43% 40% 121 41% 47% 109 48% 41% 77 61% 88 57% 94

2010 2011 2012 2013 2014 2015 Jun-15 Jun-16 2014 – Plantersbank consumer portfolio P3.89B 23 Diversified loan portfolio -- room to grow consumer portfolio

Loans growth faster in consumer segment (CHIB & CBS)

Consumer Loans (PHP in B)

Housing Auto Personal Credit card

45 0.84 2.09 41 0.54 1.92 36 0.08 33 - 1.95 12.71 2.11 11.41 10.65 9.57 21 0.55 - 16 6.24 0.09 - 29.47 10 27.02 5.21 23.77 21.32 7 0.40 - - 4.71 13.78 3.72 10.21 2.98 4.70 2010 2011 2012 2013 2014 2015 Jun-15 Jun-16 24 Loan portfolio – well collateralized

Loans By Security

Unsecured Secured

52% 58%

53% 53% 51% 60% 48% 42% 47% 49% 47% 40%

2010 2011 2012 2013 2014 2015

25 Improving asset quality & loan loss coverage

Asset Quality Ratios post PDB integration

NPL Ratios LLR Coverage

3% 180% 2.68% 2.63% 153% 157% 2.52% 160% 3% 2.24% 134% 140% 124% 125% 1.99% 147% 2% 120%

100% 1.90% 2% 1.73% 1.78% 1.77% 1.57% 80% 101% 88% 78% 80% 1% 60% Plantersbank acquired Plantersbank acquired 40% 1% 20%

0% 0% 2013 2014 2015 Mar-16 Jun-16 2013 2014 2015 Mar-16 Jun-16 Parent CHIB Conso Parent CHIB Conso

26 Credit cost - lower than industry

Credit Cost

0.94%

0.92%

0.86% 0.69%

0.56% 0.57% 0.67% 0.51% 0.42% 0.33% 0.41% 0.29% 0.31% 0.17% 0.11% 0.19% 0.18% 0.34% 0.13% 0.08%

2007 2008 2009 2010 2011 2012 2013 2014 2015 Jun-16 CHIB Industry

27 Strong branch franchise/retail funding base

Deposits (PHP in B), core deposits 70% Peso Deposits (PHP in B)

CASA High Cost FCDU

396 439 463 373 399 68 67 399 326 330 354 73 70 283 71 272 160 173 218 213 216 54 147 141 159 168 146 53 49 128 88 89 212 188 222 137 179 70 78 90

2010 2011 2012 2013 2014 2015 2Q2015 2Q2016 2010 2011 2012 2013 2014 2015 2Q20152Q2016

Loans to Deposits Ratio CASA to Peso Deposits Ratio 80% 57% 56% 67% 72% 60% 70% 62% 73% 46% 48% 70% 71% 70% 50% 60% 55% 57% 50% 49% 40% 44% 41% 40% 30% 30% 20% 20% 10% 10% 0% 2010 2011 2012 2013 2014 2015 2Q2015 2Q2016 28 Stable Margins

7%

6.08% 6% 5.57%

5% 4.73% 4.31% 4.22% 4.32% 3.97% 4.16% 4% 3.76% 3.30% 3.37% 2.90% 2.98% 3.16% 3% 2.21% 1.90% 2.06% 2% 1.30% 1.12% 0.98% 1% 1.08%

0% 2010 2011 2012 2013 2014 2015 1S2016 Asset Yield Cost of Funds NIM 29 Healthy capital position

Capital Adequacy Ratio (CAR) Tier-1 Ratio Industry Average CAR

23.6% 22.0% 17.7% 17.3% 19.0% 18.9% 16.2% 16.0% 17.8% 15.8% 16.4% 16.6% 14.8% 14.5% 15.9% 15.7% 16.0% 16.0% 15.8% 15.4% 13.5% 18.5% * 13.5% 12.8% 13.2% 15.7% 17.0% 15.2% 14.6% 15.1% 11.9% 14.0% 13.6% 12.3% 12.6% 12.6% 62 57 59 59 45 39 42 35 30 25 27 26

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Jun-15 Jun-16

Preemptive rights * As of March 2016 Basel II P8Billon stock waived (By Laws implementation 30 rights in 2014 amended) Diversifying income stream

Operating Income Mix (PHP in M)

Net Interest Income Fee Income* Trading & Securities Others

19,572 18,848

23% 12,744 15,097 25% 13,856

34% 10,849 33% 42% 9,471 27% 22% 66% 75%

58% 65% 67% 77% 78%

2011 2012 2013 2014 2015 1S2015 1S2016

* Includes service charges, fees & commissions, trust , investment banking fees 31 Key Investment Merits

Bancassurance JV MCBL, significant player

35.00 33 Ranking in terms of Premium Income (Dec 2015) 3% Market Share 30.00 2007 – CHIB equity 5%

25.00 2014 – CHIB equity 40% 23 21 21 20 20.00 26.09

15.00 13.29 14 13 20.55 19.48 10 10.00 19.35 8.44 8.29 6 6 5 5.00 8.85 1.40 6.72 7.88 4.42 5.48 4.36 4.97 4.71 2.27 - 1.32 0.46 1.30 1.41 0.22 SunLife Phil AXA Philamlife BPI-Philam PruLife Manulife Insular Life Sunlife BDO PNB Life Manulife Phils Grepa Generali Insurance Pilipinas

Traditional Variable 32 Key Investment Merits

Net Interest Income on Loans (PBN) and Loans YoY growth (%)

Net Interest Income on Loans YoY Loans Growth

35% 14.00 31% 12.89 11.73 30% 12.00 29%

25% 10.00

22% 20% 7.61 8.00 6.78 6.32 5.90 15% 5.43 5.50 15% 6.00 12%

10% 4.00

6% 7% 5% 2.00

0% - 2010 2011 2012 2013 2014 2015 Jun-15 Jun-16 33 Key Investment Merits

Effective cost management even with cost drag of branch expansion

Cost to Income – Philippine Banks June 2016 Cost to Income – China Bank (%)

65.5% 68.2% 59.7% 61.4% 62.2% 62.3% 55.7% 57.3% 61.4% 50.8% 51.6% 59.2% 59.0% 47.5% 55.4% 56.3% 55.2% 56.0% 53.5%

2010 2011 2012 2013 2014 2015 1S2016

BPI

UBP

PNB

MBT

EWB

BDO

CHIB

SECB RCBC CHIB Conso Ex CBS/PDB Cost to Average Assets – Philippine Banks June 2016 Cost to Average Assets – China Bank (%)

4.66% 2.90% 2.71% 2.82% 2.65% 3.34% 3.25% 2.41% 2.44% 2.46% 2.94% 2.50% 2.46% 2.46% 2.39% 1.79%

2010 2011 2012 2013 2014 2015 1S2016

BPI

UBP

PNB

MBT

EWB

BDO

CHIB

SECB RCBC 34 Distribution network to continue to grow

5th Largest Distribution Network in the Philippines Network Expansion Plan (No. of Branches, ATMs as of 30 June 2016 ) (No. of Branches and ATMs) +411 PDB CBS Branches ATMs 1182 CHB ATMs 1,182 1,200 4,000 1,102 1,052 3,372 3,500 1,026 954 2,285 1,000 857 +196 3,015 3,000 771 824 740 720 800 661 697 960 2,500 681 670 361 628 +38 200 771 562 181 187 1,443 517 524 600 524 2,000 470 176 477 584 160 438 162 +158 1,500 78 165 299 400 573 78 300 272 1,000 500 510 520 148 452 362 402 200 314 352 500 148 - - BDO MBT BPI PNB CHIB RCB EWB UBP SECB 20006 2014 2015 Jun-16 2016F 2017F 2018F 2019F 2020F

35 Key Investment Merits

Growing distribution network - Brand Refresh, Modern Branch Look & Feel

36 Customer-centric technology initiatives…

. Aug 2015 - New Core banking . New Treasury system -- platform (P.L.U.S.) Calypso . July 2016 – Upgrade Retail . Replace Trust/Asset Internet China Bank Online . EMV Compliant, ahead of schedule Management system . Cash Management / Corporate Online . Digital Banking

transformation/ Mobile Since 2015 ATM cards, machines – initiative 1 of the first in PHL

…supported by robust infrastructure platform

Calypso Treasury System

37 Sustained delivery of shareholder returns

Strong Cash Dividends (In Mn) Dividend Yield

Cash Dividends Cash Payout 12%

41.9% 10.48% 2.0 45% 10% 1.85 40% 36.5% 33.5% 1.8 8% 31.0% 1.72 35% 28.5% 27.9% 30% 6.10% 25.7% 1.59 33.1% 6% 1.6 1.54 1.56 31.1% 25% 4.73% 4.69% 1.42 20% 4% 1.4 3.11% 2.90% 2.61% 2.62% 1.29 15% 2.48% 2% 10% 1.2 1.17

1.06 5% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 1.0 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016

38 Strong shareholder support

Shareholding Structure June 2016

29% 37% SMIC @ 20%

9% Financial Retail Property 25% Services

SM Group - Sr. first became shareholder in 1979 Foreign Shareholders

Dee Group

Others 39 Strong shareholder support Benefits of SM Group Synergy

Priority rights to locate branches and ATMs in SM shopping malls

CBS mini-branches in SM Group‘s Savemore, CityMall locations, ATMs at Alfamart

Access to SM Group‘s ecosystem of merchants, suppliers and contractors

Access to SM Group‘s retail network to promote new products 40 Awards & Recognition

Strong Corporate Governance

Recipient of the Bell Award for Corporate Governance for the 4th straight year by PSE

. Only bank among the awardees in each year . Only company to have won in all Bell Awards in 4 consecutive years -- 2013, 2014, 2015, 2016

Recipient of Gold Award for Outstanding company from Institute of Corporate Directors (ICD)

. Gold (2011 and 2012)

Asia‘s Outstanding Company on Corp Governance awarded by Corporate Governance Asia

. Ranked among the top 50 publicly-listed companies in the ASEAN Corporate Governance Scorecard Country Reports and Assessments 2013-2014

41 Awards & Recognition

Finance Monthly Global Awards

. ―Banking & Finance Firm of the Year – Philippines ‖ 2016

2016 Asian Excellence Awards by Corporate Governance Asia

―Best in Investor Relations Company‖ – CHINA BANK

. ―Best in Investor Relations CEO‖ - . ―Best Investor Relations Professional‖ Ricardo R. Chua Alexander C. Escucha

42 Awards & Recognition

Experienced & competent management team Stronger presence in investment banking

11th PDS Awards Night

. “Top Corporate Issue Manager / Arranger – Bank Category‖ (besting 3 foreign banks)

Triple Asia infrastructure Awards (The Asset)

. ―Best Power Deal – Philippines for the P42.15B loan facility to San Buenaventura Power Limited Company

. ―Most Innovative Deal‖ – Philippines for the for the P31.97 B loan facility to Therma Visayas

Triple A Regional Investments Award (The Asset)

. ―Local Currency Bonds‖ for the P38.8 Bn San Miguel Brewery bond issue 43 Awards & Recognition

. Upgraded China Bank‘s Issuer Default Rating to ‗BB+‘ from ‗BB‘ (stable outlook); and its viability rating to ‗bb+‘ from bb (stable outlook)

. Ratings upgrade reflect the bank‘s:

. broadly steady asset quality

. adequate capital buffers

. stable funding & liquidity profile 44 Key Investment Merits

Experienced & competent management team

Hans T. Sy Gilbert U. Dee Vice Chairman of the Chairman of the Board Board

Highly respected senior management Ricardo R. Chua William C. Whang President, Chief Executive EVP & Head of the team in the industry… Officer Lending Business Segment and Institutional Banking Group

Romeo D. Uyan Patrick D. Cheng EVP & Head of the Financial SVP, Trust Officer and …with over 30 years of Industry Markets Segment and Head of Trust experience on average… Treasury Group Group/Asset President of China Bank Management Capital Corporation

Rosemarie Gan Alberto Emilio V. …and successful track record of SVP & Head of Retail Ramos managing acquisitions and achieving Banking Business SVP & President of China Bank Savings financial results …

Virgilio O. Chua Alexander C. Escucha FVP, Head of Investment SVP & Head of Investor Banking, Managing 45 Relations Director, Treasurer of China Bank Capital Corporation (CBCC) Financial Performance Highlights

46 Financial Highlights

Income Statement (In Millions) FY FY Change Jan-Jun Jan-Jun Change 2015 2014 Amt % 2016 2015 Amt % Net interest Income 15,085 14,089 996 7.1 7,947 7,423 524 7.1 Non-Interest Income 4,487 4,759 (272) (5.7) 2,902 2,048 854 41.7 Total Operating Income 19,572 18,848 724 3.8 10,849 9,471 1,378 14.6 Total Operating Expenses 13,159 12,168 991 8.1 6,917 6,266 651 10.4 Income before Income Tax 6,413 6,680 (267) (4.0) 3,932 3,205 727 22.7 Provision for Income Tax 810 1,565 (755) (48.2) 663 691 (27) (4.0) Net Income 5,603 5,115 488 9.5 3,269 2,514 755 30.0 Attributable to: Equity Holders of the Parent Bank 5,607 5,118 489 9.6 3,274 2,514 760 30.2 Non-controlling Interest (4) (3) (6) (0) Ratios: Net Interest Margin (%) 3.37 3.30 3.16 3.36 Cost-to-Income Ratio (%) 62.30 62.22 61.37 63.46 Return on Average Equity (%) 9.62 9.91 10.74 8.67 Return on Average Assets (%) 1.17 1.12 1.22 1.06

47 Financial Highlights

Balance Sheet In Millions FY FY Change Change 2015 2014 Amt % Jun-16 Jun-15 Amt % Total Assets 526,827 471,221 55,606 11.80 555,547 478,989 76,557 16.0 Loans & Receivables (Net) 309,762 290,419 19,343 6.66 324,026 289,323 34,703 12.0 Total Deposits 439,266 399,302 39,964 10.01 462,625 399,146 63,479 15.9 Low Cost Deposits 227,558 193,230 34,328 17.77 239,042 202,202 36,840 18.2 Time Deposits 211,708 206,071 5,637 2.74 223,583 196,944 26,639 13.5 Total Equity 59,171 56,567 2,604 4.60 62,472 58,809 3,663 6.2 Ratios: Loans to Deposits 70.52 72.73 70.04 72.49 Non-Performing Loans 2.52 2.24 2.63 2.53 NPL Coverage 87.73 101.25 80.47 92.64 Car Tier / CET 1 12.58 13.95 12.28 13.58 CAR Total 13.50 14.88 13.20 14.49 48 Management & Board of Directors

49 China Bank: Board of Directors

• Honorary Chairman and Advisor to the • Chairman of the Board since May 5, 2011 Board since 1997 • Vice Chairman from 1989 to 2011 • He is also the Chairman of listed • China Bank Board Director since May 21, 1986, companies of SM Investments • Director and President of SM Prime Holdings,

Corporation, BDO Unibank, Inc. Inc., and serves as Adviser to the Board of SM (Emeritus), and SM Prime Holdings, Inc. Investments Corporation as well as occupies

(Emeritus) positions in various companies of the SM Group Henry Sy, Sr. Hans T. Sy Honorary Chairman Chairman • Vice Chairman of the Board since May 5, • President and Chief Executive Officer since 2011 September 1, 2014 • Chairman from 1989 to 2011 • Director of the Bank since May 8, 2008 • China Bank Board Director since 1969 • Chief Operating Officer from 1995 - 2014 • Chairman of the Boards of Union Motor • Joined CHIB in 1975 (41 years) Corporation and China Bank subsidiary • Director of the China Bank Savings, Inc. CBC Properties and Computer Center, Inc. (CBSI), Chinabank Insurance Brokers, Inc. (CBC-PCCI), and Director of Super Ricardo R. Chua (CBC-IBI), CBC-PCCI, Chinabank Capital Corp. Gilbert U. Dee Industrial Corporation Director & (CBCC), Manulife China Bank Life Assurance Vice Chairman President Corp. (MCBLife), Bankers Association of the Philippines (BAP) • President of BancNet, Inc.

• Member of the Board since April 14, 1977 • Director since 1984 • President and Chief Executive Officer of • Director/ President of JJACCIS Development

the Bank from 1985 to 2014 Corporation and Enterprise Realty Corporation,

• Director in CBC-PCCI, CBC-IBI and CBC and Director/ Treasurer of Suntree Holdings Forex, Hydee Management & Resources Corporation Corporation, Commonwealth Foods, Inc., and GDSK Development Corporation

• Independent Director in City & Land

Developers, Inc. and Cityland Joaquin T. Dee Peter S. Dee Development Corporation Director 50 Director China Bank: Board of Directors

• Independent Director and was first elected • Director since 1993 to the China Bank Board on May 9, 1985 • Director of SM Prime Holdings, Inc. • Vice Chairman of Panelon Philippines, Inc., • Director of Supervalue, Inc., Super Shopping

Honorary Chairman of Chiang Kai Shek Market, Inc., National University and Sanford

College, and Chairman Emeritus of the Dr. Marketing Corp. Sun Yat Sen Society

Dy Tiong Herbert T. Sy Independent Director Director

• Director since 2001 • Independent Director and was first elected to the • President of SM Investments Corp. China Bank Board on July 7, 2004 • Director of SM Synergy Properties Holdings • President & CEO of Richwell Trading Corporation, Corp., Sybase Equity Investments Corp., Richwell Philippines, Inc., Europlay Distributor Co., and Tagaytay Resort Development Inc., and Internationale Globale Marques, Inc.; Corporation President of Richphil House Incorporated, and

Megarich Property Ventures Corp. • Director of CBSI and CBCC Alberto S. Yao Harley T. Sy Independent Director Director

• Independent Director and was first elected • Director since November 7, 2007 to the China Bank Board on May 5, 2005 • Director, EVP and CFO of SM Investments Corp. • Member of the Boards of Trustees of St. • Director of Atlas Consolidated Mining and

Luke‘s Medical Center, SLMC Global City, Development Corporation, Belle Corp., and BDO Inc., St. Luke‘s College of Medicine – Unibank, Inc. William H. Quasha Memorial, and Brent • Adviser to the Board of Directors in Premium International School, Inc Leisure Corporation & SM Prime Holdings, Inc. • Independent Director of Seaoil Phils., Inc. • Director in OCLP (Ortigas) Holdings, Inc., Manila and Towers Watson Insurance Brokers North Tollways Corporation, and CityMall

Philippine Inc., CBSI and CBCC Jose T. Sio Commercial Centers Inc. Roberto F. Kuan • Independent Director of Far Eastern • President of SM Foundation, Inc. and GlobalFund Director Independent University, Incorporated Holdings, Inc. Director 51

China Bank: Management

• Head of the Financial Markets • Head of the Lending Business Segment, Segment, and concurrent Head of and concurrent Head of Institutional Treasury Group effective July 01, 2016 Banking Group • President and Director of China Bank • Director/Treasurer of China Bank Capital Corporation (CBCC) Insurance Brokers (CBC-IBI) and CBC Properties and Computer Center (CBC-

PCCI); Director of CBCC

Romeo D. Uyan William C. Whang EVP EVP

• Head of Retail Banking Business • President of China Bank Savings, Inc. • Director of CBSI (CBSI) • With China Bank since 1978 (38 years) • Director of MCBLife and CBCC • He is also Trustee/ Treasurer of the Chamber of Thrift Banks

Alberto Emilio V. Rosemarie C. Gan Ramos SVP President, CBSI

• Trust Officer and Head of Trust Group • Head of Centralized Operations Group,

• Former president, HSBC Savings Remittance Business Operations and

• 2-time president, Chamber of Thrift Correspondent Banking

Banks • Director of CBC-PCCI, CBC Forex, and

CBSI

Patrick D. Cheng Ramon R. Zamora SVP SVP

52 China Bank: Management

• Head of Investor & • Head of Investment Banking, Managing

Corporate Relations Director, Treasurer of China Bank

Group Capital Corporation (CBCC)

• Director of CBSI • Board Director, Vice President, Debt • Chairman of the UP Capital Markets Committee of the

Visayas Foundation; Investment House Association of the

International resource Phils. From 2014 to present

person at the Asian Virgilio O. Chua Alexander C. Escucha Banker FVP SVP • With China Bank since 1994 (22 years)

• Chief Compliance Officer • Chief Risk Officer

Atty. Marissa B. Espino Ananias Cornelio III VP FVP

• Corporate Secretary

Atty. Corazon Morando VP 53 More than your banker, the right partner.

Investor Relations: Investor Relations (IR) Team: 28/F, BDO Equitable Tower, 8751 , Makati City Alexander C. Escucha Philippines, 1226 Senior Vice President [email protected] Phone: (632) 885-5601 Fax: (632) 892-0238 Vicky N. Quisido Email: [email protected] Asst. Manager Website: www.chinabank.ph [email protected] 54