CHINA BANKING CORPORATION (CHIB)

Investor Presentation

1 Strengths

Company Profile

2 A Premier Banking Franchise in the

Snapshot of Major Milestones Who We Are • Long history as the oldest privately owned bank in the August March December Philippines, established in 1920

• Listed in 1947 and is one of the original listed companies 1920 2007 2012 2013 upon the formation of the Philippine Stock Exchange

• Ranked 5th in total assets, deposits, capital and number of branches (excluding gov’t banks) June November

• Has the longest relationship with Chinese-, Branch Network as of Dec 2014 China serving this community for well over 90 years China Bank Plantersbank Bank Our Strategy Savings • Expand leadership position in SME/MME and consumer Luzon 83 37 44 segments further enhanced by recent strategic Metro 152 32 24 acquisitions Visayas 48 6 6

• Accelerate branch expansion to increase customer touch Mindanao 31 3 4 points and grow customer base Branches 314 78 78 Total Branches: 470

3 Comprehensive Financial Services Platform

-Bank’s organization highlights three engines of growth: Relationship Banking, Financial Capital Markets and Investments and the Savings Bank . -Focused growth aims to accelerate business expansion and to ensure efficient client servicing and product delivery.

Relationship Financial Capital Markets and Key Subsidiaries/ Other Banking Investment Segment Business Units

- China Bank Savings, Inc. - Investment Banking Retail Banking Lending Segment - Planters Development - Treasury Bank Business Segment - Private Banking - Manulife-China Bank Life Institutional Banking - Trust Assurance Corporation (MCBLife) - Commercial Banking -Branch Banking - Corporate Banking - Business Center (Chinatown) Consumer Banking - Consumer Banking - Remittance Business - Credit Card

4 Comprehensive Financial Services Platform Transaction Rationale Increased Scale for China Bank Post- Acquisition Total Assets (BN)

Strategic opportunity to expand its SME portfolio and geographic footprint

Integration of Plantersbank’s business into China Bank Savings due to complimentary clientele, target markets and business model Net Loans (BN)

Improve cost efficiency through economies of scale and systems integration

Optimize platform and increase Number of Branches opportunities to cross-sell and up-sell higher value products

Ability to support core customers across corporate lifecycle

Source: SEC 17Q Reports

5 Strengths

Sector Overview

6 POSITIVE MACRO-ECONOMIC ENVIRONMENT

Strongest GDP Growth among ASEAN countries, which is expected to be sustainable

Source: IMF World Economic Outlook- October 2014

Strongest sovereign credit ratings for the Philippines Current Rating BBB BBB- Baa3 Outlook Stable Stable Positive Date May-14 Mar-14 Oct-13

Source: Rating Agencies

7 POSITIVE MACRO-ECONOMIC ENVIRONMENT

Government Infra- spending (% of GDP)

Source: Philippine Economic Briefing, September 2014 Infrastructure Development under PPP Projects

Source: Public Private Partnership Center (Nov 10, 2014) ~ Current Pipeline of 57 PPP Projects

8 Competitive Growth Rates Competitive Position (as of September 2014)

. Top 5 Bank (private EKB in terms of assets & branches) . CHIB has officially overtaken RCBC and DBP

ASSETS2/ NET LOANS2/ DEPOSITS2/ CAPITAL2/ Net Income1/ ROE1/ Institution Amt Mkt Share Amt Mkt Share Amt Mkt Share Amt Mkt Share Amt Mkt Share Jan-Sep Jan-Sep Branches (in P Bn) (%) (in P Bn) (%) (in P Bn) (%) (in P Bn) (%) (in P Bn) (%) '14 '13 BDO 1,764 17.40% 1,102 22.29% 1,425 18.64% 173 16.88% 16.76 20.56% 13.54% 15.41% 858 MBT 1,502 14.82% 764 15.45% 1,108 14.49% 142 13.90% 15.53 19.06% 11.43% 18.94% 887 BPI 1,275 12.58% 698 14.12% 1,045 13.67% 132 12.93% 12.79 15.69% 13.40% 20.50% 825 PNB 586 5.78% 281 5.69% 436 5.71% 92 8.99% 3.72 4.56% 5.50% 13.10% 656 CHIB 454 4.48% 270 5.46% 302 3.95% 51 5.01% 3.37 4.13% 8.94% 11.79% 456 RCBC 435 4.29% 239 4.84% 272 3.56% 49 4.76% 3.01 3.69% 8.56% 14.20% 445 UBP 381 3.76% 119 2.40% 301 3.94% 44 4.31% 5.01 6.15% 14.90% 21.20% 245 SECB 366 3.61% 177 3.57% 232 3.04% 46 4.48% 6.41 7.87% 19.90% 14.50% 254 EW 167 1.65% 109 2.20% 128 1.67% 21 2.03% 1.65 2.02% 10.90% 12.60% 391 Gov't Banks 1,349 13.30% 460 9.32% 1,054 13.78% 113 11.04% 13.25 16.26% LBP 2/ 911 8.98% 316 6.38% 781 10.22% 72 7.03% 9.30 11.41% 17.28% 16.54% 345 DBP 2/ 437 4.32% 145 2.92% 272 3.56% 41 3.97% 3.95 4.85% 9.84% 7.13% 96 Foreign Banks 1,044 10.29% 418 8.47% 734 9.61% 65 6.36% Other Local Banks 815 8.04% 306 6.19% 607 7.94% 95 9.31% TOTAL 10,139 100% 4,942 100% 7,643 100% 1,024 100% 81.50 100% 1/ data from SEC 17-Q, 3Q 2/ data from Published SOC 9 Competitive Growth Rates Total Assets (BN) Sep 2014

Source: 3Q 2014 Published SOC Net Loans (BN) Sep 2014

Source: 3Q 2014 Published SOC 10 Competitive Growth Rates Total Deposits (BN) Sep 2014

Source: 3Q 2014 Published SOC Equity (BN) Sep 2014

Source: 3Q 2014 Published SOC 11 Competitive Growth Rates Cost to Income (%) Sep 2014

Source: Sec 17-Q,- 3Q2014, BSP-Statistics Gross NPL (%)* Sep 2014 9.22

4.44 3.78

1.89 1.50 1.44 1.12 0.45 0.62

BDO MBT BPI PNB CHIB RCBC UBP SECB EWB

* Parent only Source: Published SOC- 3Q2014

12

Competitive Growth Rates CAR (%) Sep 2014

Source: Published SOC- 3Q2014 ROE (%) Sep 2014 ROA (%) Sep 2014

Source: Sec 17-Q,- 3Q2014, BSP-Statistics 13 Strengths

Key Investment Merits

14 Longest Relationship with Affluent Chinese-Filipino Community

Achieving Significant Growth with Improving Asset Quality Strengths

Sustained Delivery of Superior Value to Shareholders

Well Positioned for Growth Expansion

Strong Balance Sheet Performance

Strong Support from Shareholder and Synergies Enjoyed from the SM Group

Highly Regarded Management Team and Strong Corporate Governance Track Record

15 Longest Relationship with Affluent Chinese-Filipino Community

Loyal and highly valuable customer base

Predominantly focused on the SME/MME segments

Multi-generational relationship

Agile and entrepreneurial mindset

Sustainable and profitable niche client relationship

16 Achieving Significant Growth with Improving Asset Quality Total Gross Loans* (in BN) % Share of Secured Loans to Total 14 % increase Y-o-Y

279 243 224 14% 194 13% 152 13% 12% 43% 113 40% 45% 12% 42% 12% 31% 31% 47% 42% 43% 57% 57% 46%

2010 2011 2012 2013 Sep-13 Sep-14

Corporate Commercial Consumer

NPA, NPL and LLR Ratio* (%)

* Consolidated 17 Sustained Delivery of Superior Value to Shareholders

Cost to Income Ratio (%) Strong Cash Dividends (in MN)

Diversified Income Stream 12 13 13 14

18 Well Positioned for Growth and Expansion

Extensive Distribution Network Conservative Loan-to-Deposit Profile (Number of Branches as of September 2014)

887 #5 858 825

656

456 445 254 245

MBT BDO BPI PNB CHIB RCBC SECB UBP

On-going Network Expansion Plan Robust and Scalable Infrastructure Platform

19 Strong Balance Sheet Performance Total Assets (BN) 27% increase Y-o-Y

Source: SEC17Q Report

Total Deposits (BN) 27% increase Y-o-Y 34% increase Y-385o-Y 354

272 303 17% 20% 213 216 193 22% 174 20% 38% 41% 140 23% 33% 122 25% 22% 27% 47% 22% 40% 29% 42% 42% 48% 51% 45% 45% 39% 46% 33% 38% 33% 26% 30% 26% 31% 2006 2007 2008 2009 2010 2011 2012 2013 Sep-13 Sep-14 CASA High Cost FCDU Source: SEC17Q Report 20 Strong Balance Sheet Performance

Total Equity (BN)

~ From excess buffer to efficient use of capital ~ Only major bank with no Tier 2 Notes issuance

Source: SEC17Q Report 21 Strong Support from Shareholder and Synergies Enjoyed from the SM Group Current Shareholdings Distinct Benefits for China Bank

Mutual to the SM Group’s ecosystem of merchants, suppliers and SM Group contractors 39% Public 49%

Priority rights to place branches and Dee ATMs in shopping malls owned by SM Families CBC Prime Holdings, Inc. 10% Retirement 2.3%

Snapshot of SM Group Business Lines Superior network locations for opening mini-branches in SM Group’s Savemore supermarkets

Access to SM Group’s retail network to Financial promote new products such as its Retail Property upcoming payment cards products Services

22 Highly Regarded Management Team

Hans T. Sy Carlos M. Borromeo Chairman of the Board CFO & Head of Financial Highly respected senior management Mgt Segment team

Gilbert U. Dee Alberto Emilio V. Ramos Vice Chairman of the SVP & President of China Board On the average, over 20 years of Industry Bank Savings experience Ricardo R. Chua Nancy D. Yang President, Chief SVP & Head of Retail Executive Officer Banking Business (effective Sept 1, 2014) Successful track record of managing acquisitions and achieving financial Willian C. Whang Rosemarie Gan results EVP & Head of the SVP & Deputy Head of Lending Business Retail Banking Business Segment and Institutional Banking Group

Antonio S. Espedido, Jr. Alexander C. Escucha EVP & Head of the SVP & Head of Investor Financial Capital Relations Markets & Investment Segment and the Treasury Group 23 Strong Corporate Governance Track Record

Asia’s Outstanding Company on Corp Governance awarded by Corporate Governance Asia (December 2014)

Recipient of the Bell Award for Corporate Governance for the 3rd consecutive year (2012, 2013, 2014)

Highest corporate governance standards as recognized by the general market (2011, 2012)

24 Strengths

Financial Performance Highlights

25 Financial Performance Highlights

(PHP Millions, unless otherwise stated)

Jan-Sep Jan-Sep FY 2012 FY 2013 2013 2014 Net Interest Income 8,063 9,936 7,084 10,381 Non-Interest Income 5,793 5,160 4,383 3,039 Total Operating Income 13,856 15,096 11,467 13,420 Total Operating Expenses 8,431 9,321 7,013 8,977 Income Before Income Tax 5,425 5,775 4,454 4,443 Provision for Income Tax 422 675 526 1,077 Net Income 5,003 5,100 3,928 3,366 Attributable to : Equity Holders of the Parent Bank 5,018 5,103 3,922 3,370 Non-Controlling Interest (15) (3) 6 (4) Net Interest Margin 2.9% 3.0% 3.0% 3.2% Cost-To- Income Ratio 59.1% 59.0% 58.4% 64.7% Return on Average Equity 12.2% 11.3% 11.8% 8.9% Return on Average Assets 1.7% 1.5% 1.6% 1.0%

Source: SEC 17Q Report

26 Financial Performance Highlights (Cont’d)

FY 2012 FY 2013 Sep-13 Sep-14 Total Assets (PBn) 324 414 359 456 Loans and Receivables (PBn) 190 221 206 275 Total Deposits (PBn) 272 354 303 385 Low Cost Deposits (PBn) 100 156 142 188 Time Deposits (PBn) 172 198 161 197 Total Equity (PBn) 43 45 44 54 Loans to Deposits Ratio 69.9% 62.3% 68.0% 71.3% Non-Performing Loans (“NPLs”) Ratio 2.6% 2.0% 2.4% 3.0% NPL Coverage Ratio 134.9% 146.6% 139.3% 96.8% Capital Adequacy Ratio (Tier 1) 15.20% 14.50% 15.83% 13.98% Capital Adequacy Ratio (Total) 16.00% 15.40% 16.71% 14.90%

* Sept ‘14 includes PDB Source: SEC 17Q Report

27 Strengths

Management and Board of Directors

28 China Bank: Board of Directors

• Honorary Chairman of the Board since • Chairman of the Board since 2011 and of the May 2006 Executive Committee since 1989 • Advisor to the Board since 1997 • Elected to the China Bank Board as Director in • Presently the Chairman of BDO Unibank, 1986 Inc. (Emeritus), SM Investments • Also the President of SM Prime Holdings, Inc., Corporation, and SM Prime Holdings, Inc. and serves as adviser to the board of SM Investment Corporation, and a director of , Sr. Hans T. Sy various companies in SM Group Chairman Chairman • Vice Chairman of the Board since May • Director since 1977 2006 • Retired as President as of Aug 31, 2014 • Chairman of the Board of the Bank from • Presently Director in Bank subsidiaries CBC- 1989 to 2011 PCCI and China Bank Insurance Brokers (CBC- • Presently the Chairman of Union Motor IBI), in Hydee Management & Resources Corporation and of the Bank subsidiary Corporation, and GDSK Development CBC Properties and Computer Center Corporation (CBC-PCCI) and Director of Super Gilbert U. Dee Industrial Corporation Peter S. Dee Vice Chairman Director • Director since 1984 • Independent Director for two years in • Presently the Director/ President of accordance with Securities and Exchange JJACCIS Development Corporation and Commission’s (SEC) Memorandum Circular No. Enterprise Realty Corporation, and 9, Series of 2011 Director/ Treasurer of Suntree Holdings • Director of the Bank since 1985 Corporation • Presently Vice Chairman of Panelon Philippines, Honorary Chairman of Chiang Kai Shek College, and Chairman Emeritus of the Dr. Joaquin T. Dee Dy Tiong Sun Yat Sen Society Director Independent Director

29 China Bank: Board of Directors

• Director since 1993 • Director since May 20013 • Presently Vice Chairman in SM • Presently President of SM Investment Supermarket, SM Hypermarket, and Corporation, Treasurer of SM Land, Inc. and Savemore Market; and SM Prime Director of SM Synergy Properties Holdings Holdings, Inc. Corporation, Sybase Equity Investments Corporation, and Tagaytay Resort Development Corporation Herbert T. Sy Harley T. Sy Director Director • Independent Director for two years in • Independent Director for two years in accordance with SEC Memorandum accordance with SEC Memorandum Circular Circular No. 9, Series of 2011 No. 9, Series of 2011 • Director of the Banks since 2004 • Director of the Bank since 2005 • Presently Independent Director of China • Presently Independent Director of Seaoil Phils., Bank Savings and Planters Development China Bank Savings, and Planters Development Bank Bank

Alberto S. Yao Roberto F. Kuan Independent Director Independent Director • Director since November 2007 • Director since May 2008 • Presently Director, EVP and CFO of SM • President and CEO Effective Sept 1, 2014 Investments Corporation, Adviser to BDO • Presently Chairman of the Board of China Bank Unibank Savings, Vice Chairman of Bancnet, Inc. and • Also Director of SM Keppel Land, Manila Planters Development Bank and Director of North Tollways Corporation, First Asia CBC-PCCI, CAVACON Corporation, and Sun &

Realty Development Corporation, and Earth Corporation President of SM Foundation and Global Jose T. Sio Fund Holdings Ricardo R. Chua Director, President & Director CEO

30 China Bank: Management

• EVP since February 13, 2014, subject to • EVP since February 13, 2014, subject to confirmation by the Monetary Board, confirmation by the Monetary Board, Head of Head of the Financial Capital Markets & the Lending Business Segment, and concurrent Investment Segment, and concurrent Head of Institutional Banking Group Head of Treasury Group • Elected as Director of China Bank Insurance • Currently Director of CBC Forex Brokers (CBC-IBI) since February 3, 2014, and Corporation (CBC Forex), China Bank Director/Treasurer of CBC Properties and Antonio S. Savings and Planters Development Bank William C. Whang computer Center (CBC-PCCI) since February 5, Espedido, Jr. EVP 2014 EVP • SVP and Head of Retail Banking Business • SVP and Head of Investor Relations • Currently Vice Chairman of the Board of • Currently an international resource person at CBSI, Director of CBC- IBI, and Director of The Asian Banker, Director of CBSI, Director of Planters Development Bank Planters Development Bank, and Chairman of • Related within the second civil degree of the UP Visayas Foundation consanguinity to Mr. Peter S. Dee, President & CEO

Alexander C. Nancy D. Yang Escucha SVP SVP • SVP and Group Head for Centralized • SVP and Head of Trust Group Operation Group, the Head for • More than 30 years of investment and trust Remittance Business Division, and operations experience concurrent Head of Correspondent • Currently Director of CBSI and President of Banking Sarmiento-Jacinto and Great Success Realty • Presently Director of CBC Forex, CBC-PCCI, Corp. CBSI, and Planters Development Bank

Ramon R. Zamora Rene J. Sarmiento SVP SVP

31 China Bank: Management

• President and Chief Operating Officer of • First Vice President and one of the Division Planters Development Bank since January Heads of Commercial Banking at Institutional 1, 2013 Banking Group • Joined Plantersbank as EVP and Chief • Has more than 20 years of work experience in Financial Officer in January 2012 the banking industry • Has over 20 years of banking experience • Related within the first civil degree of consanguinity to Mr. Gilbert U. Dee, Vice Carlos Borromeo Gerard T. Dee Chairman of the board President & COO, First VP Plantersbank • SVP since February 13, 2014, subject to • SVP and elected as President of China Bank confirmation by the Monetary Board, Savings since August 1, 2011 Deputy Head of Retail Banking Business • Currently Chairman of the Board of Unity Bank, • Has been with the Bank for over 35 years A Rural Bank Inc., Director of Planters Development Bank, and Trustee/ Treasurer of the Chamber of Thrift Banks

Alberto Emilio V. Rosemarie C. Gan Ramos SVP SVP • First Vice President II, Head of Investment • First Vice President and Region Head for the Banking Group, and a member of the Bank’s South and Southern Management Committee Luzon Branches • Has 26 years of experience in the fields of investment banking, corporate banking, and credit risk management

Virgilio O. Chua Philip S.L. Tsai First VP II First VP

32 China Bank: Management

• First Vice President II and one of the • First Vice President and Chief Risk Officer Division Heads of Corporate Banking at • Formerly the First Vice President and Chief Risk Institutional Banking Group Officer of Development Bank of the • Formerly connected with Australia and Philippines, and also previously connected New Zealand (ANZ) Banking Group with Rizal Commercial Banking Corp., First Limited, Corporation, Saudi Metro Investment Corp. and Solidbank British Bank, and Far East Bank Corporation Victor O. Martinez Ananias Cornelio III First VP II First VP & CRO • Vice President and Corporate Secretary • Vice President and Chief Compliance Officer • Formerly the Director of Corporate and since February 7, 2014, subject to approval of Legal Department of the Securities and the Monetary Board Exchange Commission of the Philippines • More than 20 years of experience in the • Currently Senior Vice President on banking industry Corporate and Legal Affairs and • Concurrently Chief Compliance Officer of Compliance Officer in SM Investments Planter Development Bank Corporation and SM Prime Holdings Corazon Morando VP & Corporate Marissa B. Espino Secretary CCO

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