Let’s bank on shared value
2014 Sustainability Report Over the last 163 years, the Bank of the We realize that our continuing success as a Philippine Islands (BPI) has built stakeholder financial institution significantly depends on trust on the foundation of expertise in how well we work for every Filipino’s long- advisory and relevant products and services term financial welfare and how well we enable that empower our clients financially. Moving sustainable development in the Philippines. forward, we aim to keep every Filipino’s Leveraging on our shared value focus and our vital trust by embedding economic, social, and assets—prudent capital management, engaged environmental value in everything we do. workforce, efficient processes, and continued trust G4-3 by stakeholders—places us in a strong position to become the Filipino banking champion. Through our commitment to shared value, we aspire to contribute to Filipino society beyond To this end, we continually innovate to transform the scale of the financial services we provide. the way Filipinos bank, enhance livelihood and businesses, and encourage more sustainable investments, while delivering value for our clients and shareholders.
In this report, we share with you our success stories thus far, our stories of “Banking on Shared Value.”
2 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 3 The BPI Credo
We believe our first responsibility is to ourClients . We believe in our responsibility to our People. We believe in our responsibility to our If we understand and address our clients’ financial We seek to hire the best people for each job, Shareholders. We treat capital as a most 04 BPI at a Glance needs, we will be entrusted with their most provide them with the means to perform at a high valuable asset and seek to generate superior important financial transactions, and we will build level and reward them fairly. We value integrity, returns while being prudent in risk-taking, lasting relationships. We do well when our clients professionalism, and loyalty. We promote a culture spending, and investment. Joint Message from the Chairman 06 do well. of mutual respect, meritocracy, performance, and and the President and CEO teamwork. We strive to be the employer of choice among Philippine financial institutions. We believe in our responsibility to our Country. 10 Our Report Our prosperity is greatly dependent on the well-being of our nation. We aim to be inclusive and responsible in nation building. Through BPI Foundation, we are committed to the welfare 14 Our Business and sustainability of the communities we serve. xx
23 Let’s Set Financial Wellness in Motion
37 Let’s Foster Financial Inclusion
49 Let’s Invest in Sustainable Development
71 Let’s Enhance Our CARE Systems
83 Let’s Empower Our People and Society
101 Let’s Use Resources Efficiently
109 Let’s Build Trust
129 Appendices GRI Content Index Independent Assurance Statement Acknowledgment
2014 SUSTAINABILITY REPORT 5 BPI at a Glance
Sustainable Financial Wellness Financial Inclusion Development Investments
67% increase in savings volume of 27% increase in savings volume 27.5B Pesos worth of Save-Up accounts of Easy Saver accounts approved loans to fund renewable energy, energy efficiency, and 40% growth in number of OFW climate resilience projects Regular Subscription Plan investors Ka-Negosyo roadshow events 26 814K tonnes CO2e 12% growth in the number of investors nationwide avoided per year from the Personal Banking segment
Operational Efficiency
234% increase in financial transactions 84% of transactions done through electronic channels contributing to reductions done through mobile app in construction of physical branches and fuel consumption of armored vehicles
People and Society Resource Efficiency Building Trust
84% Sustainable Engagement score 39% decrease in +61.23 net promoter score – above water consumption the average score of international financial 47% increase in institutions total number of promotions 16% decrease in carbon emissions House of the Year Asia Risk Award 11K volunteer hours rendered for local communities
4 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 5 Joint Message from the Chairman
and the President and CEO G4-1
CHANGES ARE HAPPENING To all our stakeholders, We have placed creating shared value as a cornerstone of our business. We continue to empower our FOR YOU AT BPI people to innovate systems, products, and services that address our biggest sustainable development challenges – poverty, food security, climate change, ecosystems degradation, among others – while generating significant value for our business and our shareholders.
This year, we report on the progress we are making on three focus areas where we can deliver most impact – Financial Wellness, Financial Inclusion, and Sustainable Development Investments.
Financial Wellness
We aim to help every Filipino attain a strong financial foundation and build a healthy and productive financial future. We assist our clients by providing financial advice and offering a wide array of financial products and services suited for their needs. Our products are designed to foster a culture of saving, responsible borrowing, informed investing, and protection of asset value. We offer investment products with lower minimum amount requirement, as well as a regular subscription plan (RSP) that allows monthly contribution for investments.
6 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 7 In 2014, we saw a 67% increase in Save-Up Sustainable Development Investments more low-income individuals. In 2014, 84% of Our Business Bottomline accounts, a 40% growth in OFW investors’ total transactions were done through electronic investments through RSP, an 8% increase in the We focus on enabling investments that foster channels, which reduced the need for many more By serving our clients well, we achieve strong number of mutual funds investors, and a 12% sustainable development, especially in the physical branches. and sustainable financial performance. Our total increase in the number of investors from the countryside. Of the total loans we provided in revenue increased from P52.5 billion in 2013 Personal Banking client segment. 2014, P94 billion went to investments in the We measure our performance as an employer using to 55.8 billion in 2014. BPI recorded both net countryside, boosting wholesale and retail trade, a sustainable engagement metric. In our latest income and total comprehensive income of P18.0 Financial Inclusion agriculture, manufacturing, and real estate, among survey, 84% of our employees consider themselves billion, achieving a return on assets of 1.44 percent others. sustainably engaged, across various parameters and a return on equity of 13.75 percent. For 2014, As a financial institution, we recognize our key such as involvement and empowerment, strategy we received Bangko Sentral approval to pay P7.08 role in addressing poverty. We continue to put We are particularly proud to report that as of and direction, as well as work tools and efficiency. billion in total dividends, an annual payout ratio special attention on the unbanked and low-income end of 2014, we approved P27.5 billion worth of of 39.2 percent. segments. We develop products that allow them loans to fund 174 projects in renewable energy, BPI’s proactive approach to enterprise and entry into the formal banking sector. energy efficiency, and climate resilience. These financial risk management allows us to effectively Looking Forward investments generate over a thousand gigawatt meet domestic and international market Our Easy Saver product which does not require a hour (GWh) of renewable power, save 234 GWh challenges. We have a strong top-down risk We realize the extent of change we seek to maintaining balance helps low-income individuals of electricity from energy efficiency, and cut 814 management culture, very experienced risk create sustainable value for our clients, for the start a relationship with the Bank. We help those thousand tonnes of greenhouse gas emissions. management leaders, well-defined risk appetite environment, for society and for our stakeholders who wish to start a business but do not have ready and metrics, and robust models and systems. via our various activities. What we achieved in access to capital by offering affordable loans with Our Key Enablers 2014 inspires us to do more in the coming years. extended payment terms. Our customers rated us 94.2% in overall So, to all our stakeholders, “Let’s Bank on Shared customer satisfaction and 61.23 in net promoter Our success thus far has been a product of efficient Value.” score, which is well above the average score In 2014, our total savings volume of Easy Saver systems and channels, robust risk management, of international financial institutions. This is accounts increased by 27% with a 14% increase empowered employees, and customer trust. in the number of account holders. We have also validated by the awards we received this year such as Best Payment Product Award, Diamond Award financed about 200 entrepreneurs who acquired Our electronic channels help reduce our for Marketing and Best Retail Bank Award. franchise outlets. transaction costs, thus enabling us to serve
Jaime Augusto Zobel de Ayala Cezar P. Consing Chairman President & Chief Executive Officer
8 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 9 Our Report
Scope and Coverage Environmental Performance Reporting Standards G4-32 Additional Reference G4-28, G4-29, G4-30 • Consolidated data from our head offices, Philippine branches, satellite This report is ‘In Accordance’ with the The Bank’s operational and financial Let’s bank on shared value is BPI’s seventh offices, and subsidiaries GRI G4 Guidelines - Core option for the performance is stated and filed at the annual Sustainability Report. It covers • Energy and water consumption non-financial performance. It is guided Philippine’s Securities and Exchange our business operations, inclusive of our from meter readings by utility by peer performance comparison and Commission (SEC). It forms part of the subsidiaries and affiliates within the period companies benchmarking. The integrated macro and Information Statement sent to stockholders. of January 1 to December 31, 2014. • Records of diesel consumption of micro viewpoints enabled alignment with This is available for online access at vehicles and facilities Purpose the 360° Sustainability Framework adopted www.bpiexpressonline.com. • Greenhouse gas (GHG) emissions by Ayala Corporation since 2013. calculations using the GHG Contact Information G4-31 This report presents the analysis of the Protocol Corporate Standards, This report details 40 General Standard economic, environmental and social Intergovernmental Panel on Disclosures, 20 Material Aspects and 25 For questions, comments, and suggestions, performance of our business. Through Climate Change (IPCC) emission Specific Standard Disclosures. See page 130 contact us: this report, we update our stakeholders factors for direct energy and for the complete list of Material Aspects on the progress of the Bank’s shared value National Grid Emission Factors of and its boundaries; pages 132 to 133 for the Fidelina A. Corcuera initiatives. the country’s Department of Energy GRI Content Index. Chief Sustainability Officer (DOE) for indirect energy Sustainability Office This report adheres to the Global Reporting 16th Floor BPI Building Initiative (GRI) G4 Sustainability Reporting Social Performance 6768 Ayala Avenue Guidelines and completed GRI’s Materiality • Internally generated reports Makati City 1226, Philippines Disclosures Service Check. on our employee engagement, Telephone: (632) 845-5202 legal compliances and customer Email: [email protected] Data Sources satisfaction
Sector performance data are sourced from Assurance G4-33 the following documents or guidelines: The Bank enlisted TUV Rheinland, a global Economic Performance expert in Testing, Inspection, Certification • Audited financial statements & Training, for third-party verification. conforming with Philippine TUV conducted an Environmental, Social Financial Reporting Standards and Governance (ESG) on-site audit to • Internally generated reports ensure balance, accuracy, completeness, consolidated from the management and comparability of the disclosures in information systems of the Bank’s this report. See pages 134 to 135 for the various units Independent Assurance Statement.
10 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 11 Sustainability Strategy Framework
G4-2, G4-18, G4-19, G4-20, G4-21
Our Sustainability Strategy Framework guides our thrust to become every Filipino’s Banking Champion – in • Financial inclusion – We continually strive to • Sustainable development investments – financial wellness, in financial inclusion and in sustainable development investments. To achieve this, we share widen our reach by developing products and We promote investments in industries in this report how we innovate for operational efficiency, empower our people and society, use resources efficiently, services that address the needs and preferences that strengthen urban and countryside and continue to build stakeholder trust. This is aligned with our organizational philosophy as stated in of clients coming from low-income and development. Advocating and advancing our Credo. underserved segments. We adhere to the ideals shared value financing, we also stimulate that true prosperity can only be achieved when business innovation through cleaner, low- Our three main focus areas include: everyone is involved. carbon, and resource efficient technologies.
• Financial wellness – We help individuals, wellness opportunities, a range of innovative communities and businesses grow their funds programs and more accessible investment options. and build their wealth by facilitating financial
FOCUS AREAS G4-EC8
OUR SUSTAINABILITY STRATEGY FRAMEWORK Culture of Saving Easy Saving Options Balanced Development Responsible Borrowing Payment Solutions Wider Accessibility Investment Options Affordable Loans Sustainable Financing Financial Literacy Enterprise Assistance Low-Carbon Economy FOCUS AREAS Wealth Creation Employee Stock Options Agribusiness Assistance Asset Insurance Micro Insurance Catalyzed Growth
FS7 FS6, FS8, G4-EN27 Setting Fostering Investing in Financial Wellness Financial Sustainable in Motion Inclusion Development Convenient Banking | Electronic Channels | Cash Management Solutions | Retail Services Reliable Remittances | International Network
Enhancing Operational Efficiency ENABLERS
ENABLERS Engaged Employees Reduced Carbon Footprint Customer Satisfaction Career Development Conserved Fuel and Energy High Quality Service Employee Satisfaction Saving on Electricity Marketing Brilliance Environmental Sustainability Decreased Water Consumption Sound Risk Management Empowering Using Enterprise Development Supply Chain Management Business Continuity Building 100% Local Sourcing Management Our People Resources Nation Building Trust Leadership Excellence and Society Efficiently G4-LA1, LA9, SO1 G4-EN3, EN4, EN8, EN15, EN16, G4-EC1, PR5, PR7, PR8, HR3, EN17, EC9 HR4, HR5, HR6, SO5, SO8
12 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 13 Our Business G4-4, G4-5, G4-6, G4-8, G4-9
s one of the leading banks in the many firsts in the country’s banking Acountry for the last 163 years—our and financial industry. This includes the business, products and services have automated teller machine (ATM), cash contributed significantly to the national deposit machine (CDM), BPI Express economic landscape and the day-to-day Assist (BEA) machine, point-of-sale lives of Filipinos. Being the first bank debit system, kiosk banking, phone established in the Philippines and in banking, internet banking, and mobile the Southeast Asian region, our history banking. Our 825 branches and business has been one of client trust, financial centers and 2,575 ATMs and CDMs strength and innovation. connect to form the largest combined network servicing seven million clients. Our portfolio is strategically geared Beyond nationwide coverage, our branch towards a sustainable and inclusive presence includes one in Hong Kong and society. In our book, everyone is four in Europe. included. Individuals, enterprises and institutions alike benefit either directly Acknowledged as a leading provider or indirectly from the economic drivers of financial services in the Philippines, generated by the Bank’s business. We will together with our subsidiaries, we continue to deliver products and services offer clients a wide range of financial efficiently, mindful of our corporate products and services in corporate values of integrity, strength, innovation, banking, consumer banking and lending, and productivity. investment banking, asset management, insurance, securities distribution, foreign With headquarters in the Makati Central exchange, and leasing. Business District, BPI has ushered in
84% 17% of revenue distributed increase in total to key stakeholders economic value distributed (from 2013)
2014 SUSTAINABILITY REPORT 15 Economic Value Distribution
G4-EC1 e a Economic Value d Distributed in 2014 In million pesos %
a Payments to suppliers 8,401 18%
47,125M b Payments to employees 11,653 25% c Payments to providers of capital 15,817 34% b d Payments to governments 11,203 24% Responsible contribution to nation building requires us to take on the challenge of fostering inclusive growth and e Payments to communities 51 0.1% wealth creation for every Filipino. This process begins in our internal systems and processes. Honest, accurate, c and fair handling of information ensures that stakeholders who invest with the Bank are rewarded commensurately.
Fidelity to Ethical Corporate Citizenship Insurance Corporation (PDIC). This ensures that all disbursements assigned to UCAD are processed Our Unibank Central Accounting Division within the prescribed authority limits. • Revenue / economic value generated: Our revenue streams, i.e., interest income, (UCAD) consolidates financial data, while total revenue increased from ₧52.5 billion in foreign exchange, security trading, fees, Strategic and Corporate Planning Division SCPD is responsible for providing sound budget 2013 to ₧55.8 billion in 2014, largely driven commissions, and other income. These (SCPD) assesses them for accuracy, in preparation and variance analysis of the reports generated by by the improvement in net interest income also include income and fringe benefit for presentations to the Board of Directors and UCAD. It guarantees that reporting requirements by ₧4.5 billion. For the same period, our taxes for employees and taxes derived from submission of reporting requirements to the SEC to the Bank’s Board of Directors and to ₧30.3 billion net interest income increased by properties and operational transactions. and Philippine Stock Exchange (PSE). government regulators are met. 14.8% to ₧34.8 billion. This upsurge is due Taxes in 2014 amounted to ₧11.2 billion, to expansion in our asset base of 24.6%, or a 14% increase over 2013’s ₧9.8 billion. UCAD controls the Bank’s books of accounts The Board conducts check-and-balance practices as ₧247.0-billion, tempered by a 28-basis point to ensure accurate, fair and timely financial well as audits of the Bank’s financial performance drop in net interest margin. Payments to suppliers: This covers statements and other management reports. It also and targets on a monthly basis. We also undergo payments for trainings abroad and sees to it that all entities in the group compute and quarterly and annual review checks by the SEC. • Economic value distributed: Our total all suppliers and service providers. pay required taxes. It ensures compliances defined economic value distributed increased by 17%, Procurement expenditures increased by to UCAD with regulatory reporting to the Bangko from ₧40.1 billion in 2013 to ₧47.1 billion in 12% in 2014 reaching ₧8.4 billion, from Sentral (BSP), SEC, PSE, and Philippine Deposit 2014. ₧7.5 billion in 2013.
Payments to providers of capital: This Payments to communities: This primarily 2014 Economic Figures refers to dividends paid and interest payments pertains to donations and contributions to In million pesos 2012 2013 2014 for deposits and borrowings. Amount totals charities. Economic value generated: Revenue 47,385 52,498 55,787 from 2013 to 2014 show a 30% increase, from ₧12.2 billion to ₧15.8 billion. • Economic value retained: BPI posted a Economic value distributed 48,041 40,120 47,125 lower economic value retained from the Payments to employees: Disbursements previous year at ₧8.7 billion in 2014. This Payments to suppliers 6,767 7,502 8,401 due to salaries, wages and bonuses and means we have increased our disbursements to Payments to employees 10,401 10,481 11,653 staff benefits rose by 11%, from ₧10.5 key stakeholders. Our 2014 Annual Report, billion in 2013 going up to ₧11.7 billion available online at www.bpiexpressonline.com, Payments to providers of capital 22,811 12,204 15,817 in 2014. discusses our financial performance in detail.
Payments to governments 8,026 9,842 11,203 Payments to governments: These Our indirect economic impact is discussed in Payments to communities 38 90 51 are tax payments made for corporate detail in pages 21 to 81 of this report.
Economic value retained (656) 12,378 8,662
16 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 17 Defining What’s Material to Us
G4-18
The Bank conducts periodic review of its materiality to identify key opportunities and risks relevant to emerging economic, social and environmental issues. We refer to key local and global sustainable development issues and define which issues we have the competencies to provide solutions to. We also value the perspectives of our four major stakeholders—Clients, People, Shareholders, and Country—that help us define our materiality, scope and boundaries.
Through this process, we are able to focus our efforts on areas where we are most competent on and where we are able to create the most positive impact.
This report defines management approaches for issues considered as material. We present our performance on these aspects using indicators that best capture our business context.
Guided by the GRI G4 Sustainability Reporting Guidelines, we conducted the materiality process, as outlined below.
Identification: Sustainability Context and Prioritization: Materiality and Validation: Completeness Stakeholder Inclusiveness Stakeholder Inclusiveness and Stakeholder Inclusiveness We referred to the 10 global megaforces We engaged key officers and staff to identify Our management reviewed the BPI identified by KPMG (Expect the Unexpected: which of the aspects are relevant to them Sustainability Strategy Framework to ensure Building Business Value in a Changing World, and which fall under their competencies. completeness and alignment to business 2012)–climate change, energy and fuel, water Information were obtained through extensive strategy. Our various business units also scarcity, material resource scarcity, population series of meetings with various business units confirmed that all important aspects and growth, wealth, urbanization, ecosystem and through electronic communication impacts of the business activities are considered. decline, food security, and deforestation–where exchanges. any changes to which are likely to have the Review: Sustainability Context and highest impacts to our business. We also looked In these discussions, we defined focus areas Stakeholder Inclusiveness at national trends and statistics, company where the Bank can provide business solutions. We review our previous reports and reports, market and industry developments, continually find better indicators that provide and regulatory updates for localized Stakeholder data including customer survey a balanced picture of our impacts and sustainability context. results, investor briefing materials and other sustainability performance. Moving forward, information were used to validate identified we will performs similar review process for the We collected information on stakeholder material aspects. next reporting cycle. expectations as inputs to our process. We have consolidated these material aspects into our new BPI Sustainability Strategy Framework (see pages 12 to 13).
18 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 19 Stakeholder Engagement
G4-25
Who are our stakeholders and What matters to them? How do we address them? Who are our stakeholders and What matters to them? How do we address them? how do we engage with them? how do we engage with them? G4-27 G4-27 G4-27 G4-27 G4-24, G4-26 G4-24, G4-26
CUSTOMERS REGULATORY AGENCIES
• Daily customer touch points – branches, • Quality of service • Proactive approach to customer concerns • Annual bank examination • Compliance with relevant national laws • Transparent and timely disclosures/ (i.e. proper allocation of manpower personnel, phone, email and social • Accessible electronic services • Regular audits and regulations reports media channels resources, review of outsourcing services • Transparency and accountability • Report on compliance to regulations • Convenient, affordable, reliable, and and setting up of more effective contact • Regular correspondence through letters • Annual and periodic satisfaction surveys efficient delivery of products and centers) and e-mail • Feedback on the Bank’s operations • Conduct of internal and external audits • Regular visits to existing clients services • Constant monitoring and upgrade of • Formal explanations and responses to including area briefings • Product requirements and processes systems queries • Personnel capability to address concerns • On-going personnel capacity building • Sound or customized financial advice through product briefings, seminars and INDUSTRY GROUPS AND PARTNERS training • Membership • Continuing membership • Attendance to meetings, exhibits, • Timely provision of customized feedback, conferences, seminars, symposia and advice and/or solutions to inquiries • Periodic industry meetings and working • Sharing of industry updates and fellowship activities committee meetings common concerns related to product and service delivery • Participation in meetings with key policy INVESTORS • Periodic conferences, seminars and and decision makers fellowship activities • Lobbying of significant business • Regular investor briefings • Shareholder return • Transparent and timely disclosures concerns • Active membership • Annual stockholders’ meeting • Financial performance • Discussion of industry trends and adoption of new rules and regulations • Business growth and continuity • Setting of industry standards and market practice EMPLOYEES • Provision of avenues for personnel growth (for example, enhancement of • Online portals, face-to-face meetings • Career development programs • Innovation in employee development technical knowledge and participation in and learning sessions • Clear understanding of programs, systems, processes and socio-civic projects) company practices • Annual performance appraisals organizational goals • Building of collaborative networks • Employee volunteerism programs • Periodic engagement survey • Effective leadership
SUPPLIERS AND CONTRACTORS NON-GOVERNMENT AND CIVIL SOCIETY GROUPS • Accreditation • Procurement policies (requirements, • Cascade of policies criteria for evaluation) • E-mails, letters and memos • Real-time updates • Partnerships • New projects and initiatives • Attendance to meetings • Other procurement-related concerns • Regular correspondence through • Update on existing projects • Real-time updates (cost, terms of payment, mode of e-mails, letters and memos • Takeaways from activities conducted shipment, warranties) • Post-event feedback
20 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 21 Let’s set financial wellness in motion
22 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 23 e aim to help every Filipino attain a strong financial foundation on which they Wcan build a healthy and productive financial future. Our wide array of products and services address our clients’ needs throughout their path towards financial freedom. In addition, our offerings are designed to help achieve long-term benefits for our clients, from fostering the value of saving, building healthy credit, to learning how to invest wisely and protecting assets. With this approach, BPI is well-positioned to be the Filipino’s banking champion, a champion that the Filipino public could trust to lead them to financial wellness, empowerment, and growth.
32% 8% 5,000 increase in number increase in number individuals provided with of Jumpstart accounts of AMTG investors stock market education
₧805.9B ₧824.8B ₧824.8B sum insured sum insured sum insured for earthquakes for typhoons for floods
2014 SUSTAINABILITY REPORT 25 Instilling a Culture of Saving Starting Them Young
With only 43% of Filipino adults currently Aside from scheduled automatic fund transfers, Realizing that saving has more lasting impact when accredited stores. It’s also the child’s Debit and having savings (BSP National Baseline Survey on one may also transfer funds to his Save-up account the habit is formed early on, we created a deposit Privilege Card when used at partner merchant Financial Inclusion 2015), taking steps to improve any time. To further promote the habit of saving, product for the youth with the mentoring of their outlets, where perks and privileges are offered. this basic indicator of financial wellness is an the Save-Up account does not come with an ATM parents. imperative for us. card and withdrawals cannot be made over the • Cellphone reloading can be done at the counter either. A Save-Up client may transfer and Branded as Jumpstart, it is BPI’s banner product nearest BPI Express Teller ATM, by calling We offer a convenient means to help depositors track his funds via our electronic banking portal, in the BSP’s Build Up on Your Future (BOYF) BPI Express Phone at 89-100, by accessing regularly set aside a portion of their salary BPI Express Online Advocacy Program. Jumpstart’s product features BPI Express Mobile Menu on the cellphone, for future needs. The BPI Save-Up Account (www.bpiexpressonline.com), the BPI Express enable parents to have a tool to teach their or on www.bpiexpressonline.com. automatically transfers an amount specified by the Mobile app, or through our phone banking children practical money management and depositor on a regular basis from an ATM source facility, BPI Express Phone (89-100). introductory banking, which are disciplines that The continuing success of Jumpstart stems from account such as Express Teller Savings, into a hold value for life. These features are: targeted companies implemented by BPI’s Deposit BPI Save-Up. In 2014, total savings generated via Save-Up Products Business Unit and Field Sales, together accounts grew by 26% from 2013, despite the • Guaranteed Savings protects a portion of the with the branches. Integral to these campaigns BPI Save-up also offers free insurance coverage 10% drop in the number of accounts. The average child’s funds from unplanned withdrawals, to were the Financial Wellness Seminars for kids through a tie-up with Philam Life Assurance account size likewise increased significantly by help attain a future goal. conducted in partner schools as well as product Corporation. The insurance coverage–basic 39%, showing that the average Save-Up account and advocacy awareness spread through Digital life insurance, accidental death, and accidental holder is able to save more over time. • An allowance transfer facility ensures that the and Social Media Channels. dismemberment–does not require medical child’s allowance gets credited to his Jumpstart clearance or premium payments. The coverage can account on a timely basis. By 2014, the Jumpstart account holder base had equal to as much as ten times the account balance, grown by 32% from the previous year while with a maximum of ₧4 million. • The Jumpstart ATM is as good as cash at over volume has also increased by 14%. 40,000 BPI Express Teller Payment System-
Year-on-Year Growth in Year-on-Year Growth in Savings Volume of Jumpstart^ Volume of Save-Up Accounts Accounts
26% 14% 19% 33%
2012 2013 2014 2012 2013 2014
Year-on-Year Growth in Year-on-Year Growth in Average Savings per Account Number of Jumpstart^ Accounts
39% 32% 23% 38%
2012 2013 2014 2012 2013 2014
26 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 27 Promoting Responsible Borrowing Bringing Investing Closer to People
We help families stretch their cash flow through Clients who became victims of Bringing the benefits of a robust economy to more As a result of our innovative approaches and more the low-interest BPI Family Credit Card. Aside of super typhoon Haiyan, locally Filipinos is one of our aspirations. We believe our accessible channels, our client roster for this sector from having a low finance charge at 2%, it also has investment products bring this aspiration closer increased by 8% from 81,479 in 2013 to 87,869 an affordable annual membership fee. named Yolanda, availed of a one- to reality. in 2014. Clients 30 years old and below comprise month Payment Holiday on credit the majority at 35%. Part of our mission of fostering financial wellness card payments. Some 3,200 clients Filipinos seeking to achieve financial growth is dealing proactively with pre-delinquent clients benefited from this program. should not be hindered by a general lack of The use of alternative channels, such as the through special payment arrangements. Our knowledge of alternative income sources such as Internet and mobile, for investment-related Pre-Delinquency Management service caters to from investing. transactions further increased to 47% in 2014 clients undergoing financial difficulty resulting from 41% in 2013. For the same years, use of from unemployment, medical conditions and We also extend our services to individuals often The BPI Asset Management team offers various electronic statements also grew by 40% to 9,164 natural calamities, among others. tagged ineligible to acquire a credit card through investment options for clients looking to from 6,539. Express Start Program. our These include those earn more than just interest on savings. These Through the special balance conversion facility of who don’t have a fixed or regular income such as investment products enable clients to reach their this service, clients who meet certain requirements homemakers and retirees, and those who for some long-term financial goals sooner by making their may have their credit card debt restructured. reason are unable to submit income documents money “work harder” through higher earning Payment terms under this facility range from such as fresh graduates and students who are investment instruments. six to 18 months at 1% interest; the minimum at least 18 years old. Such individuals are only amount due on the credit card debt becomes the required to maintain a deposit account with required down payment under the restructuring. the Bank over a certain period of time. Annual In exceptional cases, the repayment period may be membership fees for individuals in this program extended up to 36 months. Processing of requests are waived for the first year. to avail of this facility are completed within three days of the request. Year-on-Year Growth in Number of AMTG Customers
6% 8%
2012 2013 2014
28 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 29 Advocating Promoting Financial Literacy Investing as a Lifestyle
BPI consistently provides investor education The world of investing is unfamiliar to most programs. An important part of our efforts is an Filipinos. While people generally desire much investment summit called Investment Roadmap bigger returns on their savings, their lack of which we conduct in various parts of the country. knowledge and training in the many investment This summit highlights goal-setting and the means options keeps them from fulfilling their potential to achieve them through investing. for financial growth.
We also keep our clients informed on the state of We are adequately addressing this need through economy and financial markets through financial investment seminars and training. We educate our advisories entitled BPI Asset Management WISE clients on the how-tos of investing based on their (Weekly Investment Series), Investment Insights particular capacity, willingness, and risk appetite. and Investment Academy. Harnessing the power and reach of social media, we are gradually transforming public perception on investing, making it more accessible and attainable.
30 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 31 Offering a Wide Array Educating People Creating of Investment Options on the Stock Market Filipino Millionaires
To determine the best investment option for a client, BPI Only 1% of Filipinos invest in the stock market, One of the ways by which BPI Securities promotes Asset Management considers both investment capacity and in contrast to Hong Kong’s 30% plus. We aimed investing as a lifestyle is through the Pinoy risk tolerance. The client is given access to the best available to change this trend by democratizing access to Millionaryo Club (PMC). We have virtually investment information to build confidence and set realistic financial markets and increase the stock market become the industry leader, being the only broker expectations from investments. penetration rate in the country. To this end, BPI in the country with a successful track of hosting Securities established the Invest-in-You Trading a “community” of investors. Through social Our clients with limited financial know-how or start-up Academy (I-TRAC) to educate potential retail events, seminars and social media campaigns, investment money are assisted through our Investment investors on stock market investing. clients become passionate about investing and Funds. Unlike deposit accounts (savings and current gamely interact with one another in a more deeply accounts) that are generally for emergency and daily This move propelled BPI Securities to be the 9th connected environment. Our goal is to help create needs, our investment funds serve longer term financial highest ranked broker in terms of market share as many Filipino millionaires as possible. goals, like tuition, retirement and home ownership. Our among 184 Philippine trading participants. It also Investment Funds allow for greater flexibility and variety currently holds second place among all online Having access to sound financial advice helps our of investment choices: brokers in the country. The program’s effectiveness client to properly navigate the market, make sound is evident in the increased volume of trade investment decisions and choose the right stock transactions, which has multiplied five times over options. As members of PMC, they benefit from These allow clients to start an investment account for as the past two years. one-on-one sessions with our stock market coaches BPI Unit Investment low as ₧10,000. Our UITFs are invested in the money and are given priority in our investor education Trust Funds (UITF) market, bonds, and equities. Clients may choose particular I-TRAC’s investor education programs promote seminars. Moreover, they get access to exclusive funds to invest in, according to their preferred investment stock market investing to ordinary citizens in research and special events. strategy. Withdrawal of earnings from UITFs can be made schools, workplaces and various organizations in at any time. the country. Since 2013, the I-TRAC program has served more than 5,000 individuals. Stock market education seminars now run five to six times a These funds are managed by BPI Investment Management month, where previously they were held twice a ALFM Mutual Funds Inc. (BIMI), a wholly-owned BPI subsidiary. Our month in 2013. professionally managed mutual funds provide more diversification than most investors could achieve on their own. ALFM mutual fund offerings by BIMI only require a minimum investment of ₧5,000.
RSP allows clients to nominate a regular contribution Regular Subscription amount for their investment account for purchase of units or shares, on a monthly or a quarterly basis, working Plan (RSP) like forced savings. Aside from delivering affordability, convenience and control, RSP results in higher returns for investors due to cost-averaging. There is no penalty for missing a scheduled contribution.
Since the lowering of minimum investment amount requirements in 2013, there has been a marked increase in our investor count. For the overseas Filipino segment, investors increased by 40% to 6,552 in 2014 from the previous year’s 4,668. Investors from the Personal Banking segment grew by 12%, from 36,836 in 2013 to 41,200 in 2014.
32 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 33 Helping Prepare for the Unexpected Testimonial
Jimmy is a veteran insurance agent. He is now Being in a country frequently visited by typhoons BPI/MS relies on its 12 branches/satellite offices just 2 years shy of his 25 year engagement with and other natural calamities, we are taking the lead nationwide and the Unibank network to bring our BPI/MS. in instilling the value of protecting one’s assets and products to the market. Our distribution channels managing risks. include agencies, brokers, bancassurance, branches, If a life well-lived means being married for and the Japanese Marketing Division. forty-three years, having four children and BPI/MS Insurance Corporation (BPI/MS) 13 grandchildren, then accountant Jaime O. issued a total of 236,791 insurance policies in Total premiums generated for 2014 amounted to Mayoral is living the high-life indeed. Add a 2014, serving 132,211 clients. Most clients availed ₧5.23 billion. Of this amount, 59% is attributed winning attitude and great outlook to life; he is of our motor insurance policy, with 118,840 to fire insurance, 28% to motor insurance and among the bank’s best success stories. policies; followed by fire insurance with 78,151; 13% to the other products. marine insurance with 13,349; and personal “At 68, I am still an active BPI/MS Agent. accident with 9,679 policies. Compared to other businesses, you need capital. You need space. But being an insurance Agent, Meanwhile, total sums insured for natural what you need is knowledge. For us senior catastrophe perils are ₧805.9 billion for citizens, that’s what we have. Experience is the earthquakes; ₧824.8 billion for typhoons; and best teacher, and it made us sharp and credible.” ₧815 billion for floods. There is, according to him “less stress” in being an agent because you manage your own time, especially so, if you are in the right company with the right products. Jimmy also appreciates Insurance Policy Type % the high regard that agents like him are given at BPI/MS. He says, “You can feel the warmth and Motor 118,840 50% respect that the staff is giving to agents here at Fire 78,151 33% BPI/MS, especially to us elderlies. Jaime Mayoral Marine 13,349 6% Jimmy enjoys the freedom of not being limited to what his pension brings. He says, “having Personal accident 9,679 4% Insurance Agent BPI/MS Insurance good products and the right clients, being an Other casualty 4,647 2% agent is more profitable. Ultimately, there are less financial worries. At my age, I am still Engineering 1,817 1% able to help our relatives in the province of Bonds and other Pagudpud, Ilocos, Norte in their livelihood.” insurance policies 10,308 4% “There is ‘less stress’ in being an agent because you manage your Beyond the endless financial opportunities, Across our major product lines, 236,791 insurance policies were availed of by selling products that truly helps the clients policy holders in 2014. Collectively, motor, fire and marine insurance comprise own time, especially so, if you gives meaning to his work. “I am still an active 89 percent of this total. are in the right company with member of insurance clubs and associations. the right products.” This helps me become an even more effective agent.”
“I will continue being a BPI/MS agent for as long as I could.”
34 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 35 Let’s foster financial inclusion
36 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 37 inancial inclusion, or the delivery of financial services suited to low-income Findividuals and households, is a challenge that we at BPI try to address through our various products, services, and channels.
By making banking more accessible, we help make financial well-being a reality for more Filipinos.
14% 32 over 200 growth in number cities covered by enterprise franchise outlets of Easy Saver accounts development program thriving
2014 SUSTAINABILITY REPORT 39 Banking the Unbanked Providing Payment Solutions
FS7
More than 21 million or 56% of the total employed persons in the country are minimum wage earners (2015 Our debit and prepaid cards play significant roles in helping individuals previously unfamiliar with banking Philippines in Figures, Philippine Statistics Authority). This reality makes it difficult for a lot of Filipinos to save and financial transactions. These provide simple, convenient and secure payment options. enough to open and maintain a regular bank account. Our Easy Saver deposit product was developed to change this.
Debit Cards used up may be replenished as desired by Easy Saver Average account size steadily increased by All ATM cards issued by our Bank are debit the cardholder. An Easy Saver account may be opened with 12% annually from 2012 to 2014. This cards. These cards may be used for cash only ₧200 and a ₧50 ATM card fee, with no indicates that Easy Saver is able to serve transactions in lieu of actual cash via Express This is the entry-level product for individuals maintaining balance required. Only a minimal account holder needs. Payment System (EPS). The amount of a that may have specific needs or may not yet fee of ₧5 per transaction is charged for BPI purchase is deducted from the account’s have the credit history like the young and ATM withdrawals and debit transactions such These numbers show that given access to available balance. In support of BSP’s thrust underbanked individuals. as payments via the Express Payment System/ affordable deposit products, Filipinos—from of reducing the circulation of cash and coins, POS, ATMs, mobile app, among others. all walks of life—are able to gradually build the Bank provides incentives to its customers As prepaid card holders become more savings through their deposit accounts. who use the EPS through a rebate or reward. comfortable with cashless transactions, they By 2014, the number of Easy Saver accounts This gives risk-averse and practical customers a eventually signed up for our other products. increased by 14% from 2013. These accounts seamless way to pay for everyday needs. Over the last two years, about 30,000 prepaid comprise a significant portion of BPI’s card holders opened deposit accounts with us. depositor base. Prepaid Cards Our prepaid cards provide an efficient way for Pantawid Pasada Prepaid Cards Total volume of savings from Easy Saver those without regular BPI savings accounts This prepaid card variant, launched for the accounts also grew by 27% from 2013. to manage their finances. They allow the Department of Energy, is aimed at helping cardholder to pay for purchases and services drivers of public utility jeepneys (PUJ) with a pre-deposited balance, which when cushion the impact of high fuel prices. PUJ drivers may present their Pantawid Pasada prepaid cards in retail gasoline stations in order to avail of government fuel subsidies. Year-on-Year Growth in Year-on-Year Growth in Year-on-Year Growth in number of Easy Saver Accounts Savings Volume of Easy Saver Average Savings per Account When loaded with money through BPI’s ExpressLink real-time funds transfer system, 14% 12% 27% 12% the cards may be used at most of the retail 51% gasoline stations nationwide. 69% The use of prepaid cards reduces operational cost and relevant carbon footprint of the Bank from the management of ATMs as well as the risk to theft at ATM centers.
2012 2013 2014 2012 2013 2014 2012 2013 2014
40 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 41 Making Loans Accessible
FS7
Many Filipinos are hard-pressed to achieve financial stability and security for lack of funds and access to financial services. By providing easy access to loans, the Bank is making good progress in improving this situation.
BPI Housing Loans BPI Ka-Negosyo brands vetted by BPI for business soundness. This allows for intelligent and less risky choices We continually support events and gatherings that A good number of Filipinos who plan to start a by our Ka-Negosyo loan clients. provide the public with information on property business are unable to do so for lack of confidence financing through various means. or financial capability. We help them overcome We further alleviate overwhelming concerns these obstacles by providing financing assistance to of starting-up a business through extended We actively support the conduct of housing fairs, both existing and start-up Filipino entrepreneurs payment terms. usually in consumer frequented areas like malls. By through our BPI Family Ka-Negosyo loans. participating in these fairs, we reach prospective Short-term, long-term, or franchising loans serve We deliver this product through a 182-strong homebuyers. Aside from being able to educate to bridge capital requirements suited to different BPI Ka-Negosyo staff across 813 bank branches the public we are able to receive and process loan types of businesses. and 10 provincial centers nationwide. applications on the spot. This way, we reach our market more efficiently. This resulted in increase in We make investing in a business more interesting In 2014, we conducted four major roadshow housing loan applications. and appealing through social media posts and events in Metro Manila and six in the online community fora. Through these channels, provinces, contributing to 14% growth in We hold investment talks to deepen relationships we promote positive and educational conversations number of accounts. and nurture goodwill with our clients. In these around business strategies, business growth and talks, we share real estate trends and updates and financial wellness, among others. enrich knowledge on housing loan products to improve understanding of market opportunities. To educate would-be entrepreneurs, our Ka- Negosyo team regularly conducts investment The Bank encourages community and individual seminars, training sessions, and solutions growth of real estate brokers by widening the range presentations. of our accreditation and compensation programs for bona fide members of broker communities. Ka-Negosyo fosters partnerships with various business organizations such as the Philippine We also reward successful loan referrals by Franchise Association, Association of Filipino accredited brokers with corresponding incentives Franchisers Inc. and Go Negosyo who share our through our Brokers Circle Incentive Program. goal of helping entrepreneurs and business start-ups. This scheme aims to inspire more brokers into our roster. This has resulted increases in loan referrals We also conduct roadshows where we present our and actual real estate loan transactions. “Ka-Negosyo Best List,” a short list of franchise
42 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 43 Testimonials
Cheysserlyn Ting Marlowe and Roselle Mendoza “BPI knew what we needed, Entrepreneur “We made the right decision Restaurateurs Red Engine Diner, Hermana, allowed us to negotiate, and Daddy’s Toasted Siopao in starting young.” The Recados they were also motivated to help us succeed.” From Fruits to Franchise Restaurant Success
Cheysserlyn Ting always had a passion for start-up capital and once we started discussing Since getting married in 2006, Marlowe and Their first business funded by Ka-Negosyo was entrepreneurship. Her parents made a decent terms and conditions, the Ka-Negosyo team Roselle Mendoza have dreamt of putting up Red Engine Diner in Makati. Over the years, living from selling fruits and vegetables in was very helpful and encouraging.” she states. their own restaurant. While both worked hard, the Mendozas built other dining places such Cauayan, Isabela. Now, at 26 years old, capital was their main challenge. as Hermana, and The Recados - all possible her passion compelled Cheysserlyn and her It has only been two months but Cheysserlyn through Ka-Negosyo. husband to set up their own business franchise and her husband are enjoying their experiences The Mendozas found a reliable partner for their of Daddy’s Toasted Siopao. in franchising. “I also believe we made the right initial enterprise with BPI Family Savings Bank’s “We are so grateful to have found one in BPI decision in starting young. My family and I can Ka-Negosyo Business Loans. “The Ka-Negosyo Family Ka-Negosyo. For middle-class people Through BPI Ka-Negosyo, managing the enjoy our financial independence this early and team really helped us a lot. They knew what we like us who were not born with a silver spoon, franchise became easier. “We didn’t have a hard create a self-sustaining means for our security as needed, allowed us to negotiate, and they were cashing in on an opportunity when it presents time contacting them – the internet made them we grow older.” also motivated to help us succeed.” itself is priceless”, Roselle exclaimed. easy to reach via their website. They lent us our
44 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 45 Guiding Young Minds Educating Emerging Insuring Your Future Sharing Financial Entrepreneurs Growth with Employees
The Bank believes in the Filipino youth and in the BPI promotes entrepreneurship and empowers BPI/MS in cooperation with BPI Globe BanKO Through the initial public offerings (IPOs) integrity of their ingenious ideas. We encourage aspiring entrepreneurs as catalysts of positive helps those in the lower income segment by services of BPI Capital Corporation, we idea innovation among our country’s brightest change in communities. providing innovative and affordable micro- influence our clients to allocate stocks for their students who lack the groundwork for future insurance products and taking on the transfer of employees. This affords the employees the business development. Our Show Me, Teach Me, MSME program, risks for their protection. financial benefits gained as the company in partnership with the Department of Trade goes public. The BPI-DOST Science Awards provides an and Industry’s Philippine Trade Training Center BPI/MS Bahay at Buhay product complements avenue to present sound concepts having strong (PTTC), teaches emerging entrepreneurs basic with microfinance loans which improve our In 2014, we have enabled around 300 potential to be realized as actual science and skills that prepare them to develop better products clients’ social standing. We support and empower employees to avail of the opportunity to invest technology-based businesses now or in future; or matched to market needs. our clients’ financial independence by creating in the company they work hard for. This allows help advance current technologies for adoption to opportunities that allow them to continue to companies to share their potential to create businesses thereby enhancing livelihood. Food packaging, labeling and product design generate income. wealth with their employees. enhancement, and assessment for the non-food Counting among the most respected of local sector were among the topics covered in 2014. PaniguroKO gives the account holder access to a national student awards in the country, excellence non-life insurance policy that costs only ₧365 for a in research and application in the fields of The program has covered 32 cities and has trained one-year coverage. biology, chemistry, computer science, engineering, 1,526 MSMEs since 2010, making our local mathematics, and physics is duly recognized and products more competitive. rewarded. This annual program has been on-going for 25 years and is run with the Department of Science and Technology.
46 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 47 Let’s invest in sustainable development
48 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 49 big part of our success over the years may be attributed to a conscious effort to Afoster sustainable growth, anchored on countryside development and sustainable energy. We are committed to financing projects that help build more vibrant, modern and low-carbon communities.
The co-dependence of the countryside and urban areas is important to achieving significant national economic growth. The 6.1% growth in Gross Domestic Product (GDP) in 2014 is mainly contributed by growth in the countryside–at 4% (2014 Gross Regional Domestic Product Highlights, National Statistical Coordination Board). Recognizing this, we strengthened our focus in enabling investments beyond the National Capital Region (NCR).
At BPI, we make sure that the growth we enable is sustainable and inclusive.
1,058 GWh 234 GWh 506B RE generated saved from EE pesos worth of loans for projects projects in Metro Manila
94B 97B 257B pesos invested in pesos invested in various pesos raised for various countryside development development projects development projects (Corporate Clients) (BPI Capital) (BPI Capital)
2014 SUSTAINABILITY REPORT 51 Outstanding Loans Ensuring a Balanced Increasing Accessibility In million pesos Financing % Development Where It Matters a Wholesale and Retail Trade 87,126 15%
FS6 b BPI Leasing and Rental 8,900 1%
a c Agriculture, Forestry and Fishing 14,226 2% b l c 12,674 2% d d Construction
k e Financial Intermediation 95,631 16%
j f Hotels and Restaurants 10,367 2% e 600.29B g Manufacturing 170,067 28%
f h Mining and Quarrying 6,073 1% Our lending to corporate entities is propelling Strategically located business centers and sub- i i Real Estate, Renting and the growth of the country’s business sector, with centers all over the country help us to reach clients 102,709 17% more than ₧600 billion released to 100,223 over wide areas. In 2014, we served 34,960 large, other business activities h private enterprises in 2014. Such lending has medium, small, and micro-enterprises at these j Services 21,339 4% benefited not only large business conglomerates business centers, an increase of 20% over the g but also small and micro-enterprises. previous year, with San Pedro, Laguna (30%) and k Transportation, Storage and 24,784 4% Cebu City (25%) having the highest increases. Communication Our comprehensive range of lending products l Utilities 46,392 8% includes short term inventory and trade While positioned to serve large and medium financing, term facilities for the financing of enterprises–conglomerates and multinationals capital expenditures or acquisitions and project whose assets are worth ₧50 million to ₧100 financing. These are aimed at spurring growth million–our corporate banking also provides loans Distribution of Loans per Region and Sector Metropolitan Provinces in both urban and countryside. We have evolved to small enterprises and micro-businesses, at ₧5.7 In million pesos A reas from being a funding partner to being a financial million and ₧2.2 million, respectively in 2014. Manufacturing advisor of our clients. We also offer alternative financing for clients who are raising capital Close to a third of our corporate lending goes to 151,817 18,251 Real Estate through IPOs and through the issuance of bonds clients in the manufacturing sector at 28%. The and corporate notes. remaining goes to clients in real estate, renting 90,960 11,749 and other business activities (17%), financial Financial intermediation 85,657 9,974 intermediation (16%), and wholesale and retail trade (14%). Wholesale and Retail Trade 59,056 28,070
In 2014, our corporate clients grew by 15% from Utilities the previous year, with total outstanding loans 42,979 3,412 increasing by 30%. Transportation, Storage and Communication 20,527 4,257
Services 14,768 6,571
Agriculture, Forestry and Fishing 7,516 6,710
10,180 2,494 Construction
7,605 2,762 Hotels and Restaurants 8,900 - BPI Leasing and Rental 5,992 81
Mining and Quarrying
20 60 100 140 180
52 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 53 Boosting Countryside Growth
DISTRIBUTION OF CORPORATE CLIENTS
We give priority to investments that create significant economic and social benefits in the countryside. In 2014, we provided ₧94.3 billion in loans for countryside businesses, 30% of which went to wholesale and retail trade, 19% to manufacturing, 12% for real estate, renting and other business activities, and about 7% to food security-related enterprises.
Among other purposes, these business activities inherently create local or regional job opportunities encouraging more individuals to live and work in the provinces, rather than move to urban areas. By supporting enterprises in food, retail, transportation and storage, we help enhance the flow of economic value between urban centers and the countryside.
This contributes to the 10.6 million total employment in 2014 by the wholesale and retail trade, manufacturing and real estate sectors in the country (Philippines and Figures 2015, Philippine Statistics Authority).
Outstanding Loans Distributed to the Provinces (Total ₧94,331 billion) Financing %
a Wholesale and Retail Trade 28,070 30% a b b Agriculture, Hunting, Forestry, 6,710 7% and Fishing c c Construction 2,494 3%
d Financial Intermediation 9,974 11% d k 94,331M e Hotels and Restaurants 2,762 3% j e f Manufacturing 18,251 19% i g Mining and Quarrying 81 0%
f h Real Estate, Renting and h 11,749 12% g other business activities
i Services 6,571 7%
j Transportation, Storage and 4,257 4% Communication
k Utilities 3,412 4%
54 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 55 Advancing the Agribusiness Sector Feature
BPI provided a loan to onion farmers’ cooperative, KASAMNE or Katipunan ng mga Samahang Magsisibuyas ng Nueva Ecija.
KASAMNE was organized and registered in 1989 at the Bureau of Agricultural Cooperative and confirmed by Cooperative Development BPI has been lending to the agribusiness sector for The loan proceeds invested into piggery and Authority in 1991. It has a membership of more than 30 years now. Recognizing our potential poultry projects result in healthier animals, better about 450 onion producers and farmers from to create positive social and economic impact, we productivity and better feed conversion ratio. 17 cooperatives in the towns of Bongabon, launched Agribusiness Solutions in March 2013, Through these projects, piggery operators typically Palayan, Laur, Gabaldon, Rizal, Gen. Natividad, an enhanced lending program for the use of state- recover their investment in eight to nine years; Pantabangan and Palayan, and San Jose City of of-the-art technology in piggery and poultry sector poultry operators, five to six years. The proceeds Nueva Ecija province. operations. Other types of loan products include were also invested in biodigesters for production investments for agricultural crops and post-harvest of biogas fuel from animal wastes, saving for the The cooperative exists to help regulate onion operations such as rice mill, dressing plant, meat farmers around 65% in electricity cost while prices year-round, protecting farmers from processing plant, slaughter house, cold storage, significantly reducing their greenhouse gas low prices during harvest season and local and feed mills, among others. (GHG) emissions. consumers from price hike during off seasons. It also helps farmers earn sufficient income In 2014, the loans provided through these The success of Agribusiness Solutions in 2014 was throughout the year. products help boost job creation and food a result of aggressive marketing and promotional production in the rural areas. A portion of these activities by a team of five product managers and Extending the shelf life of the produce is key to loans were channeled through rural banks with three technical staff. Aside from undertaking keeping competitive prices. KASAMNE farmers loan portfolios for agriculture and agrarian reform. advertising campaigns, Agribusiness Solutions turned to BPI to help them address Majority was released directly to individual participates in conventions and exhibits for this this challenge. borrowers and corporate clients. Two cooperatives, sector, like the National Hog Convention, Inahgen Financing a federation of onion growers in Nueva Ecija and and Agrilink. It also holds technical fora and Smallholder Farmers With financing from BPI, onion growers were a sugar cooperative in Batangas, also availed of the product briefings. In 2014, such briefings were able to acquire and operate a cold storage lending facility. conducted in 10 of our business centers namely facility. A portion of loan proceeds were also Dagupan, San Fernando, Bulacan, Laguna, used as working capital of a farm input trading Batangas in Luzon; Bacolod, Iloilo and Cebu business. Now, the cooperative generates 95% in the Visayas; and Davao and Cagayan de Oro of its revenues from storage fees and profits in Mindanao. from sales of farm inputs.
KASAMNE produces 6,463 metric tons (or 235,000 50-kg bags) of onions a year, accounting for at least 5% of the country’s total onion production.
56 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 57 Raising Capital to Mobilize Growth Earnings
Apart from providing direct loans, the Bank also In 2014, BPI Capital enabled ₧354.6 million For these services, BPI generated combined earnings of ₧634 million. These were mainly contributed by helps clients raise capital through its investment in investments to various development projects. our earnings from financial services to the retail, food and energy sectors at a combined 50% share. banking subsidiary, BPI Capital. The Bank sources Of this amount, BPI Capital helped raise ₧257 and manages capital in the form of debt and bonds million (73%) and directly funded ₧97.4 million from other investors—individual, corporate, or (27%). Nineteen percent of the total investments institutional. The capital raised helps recipient went to real estate projects, 16% to energy, 9% to Projects Related to Capitalization Capitalization Income Raised by BPI Loaned from Earned by BPI companies activate, continue, or complete projects telecommunications, 4% to infrastructure. Sustainable Development In million pesos BPI that advance sustainable development. Conglomerate 82,880 28,520.50 81.48
Property/Real Estate 53,800 13,936.17 62.21
Energy 43,500 12,690.00 92.52
Finance 25,000 25,000.00 88.98
Telecommunications 25,000 8,150.00 30.69
Infrastructure 11,000 1,517.00 19.94 Capital Investments In million pesos Direct Raised Retail Services 7,500 2,981.58 115.35 loans by BPI Conglomerate Food 6,900 3,309.86 111.95 28,521 82,880 Manufacturing 1,600 1,313.00 31.21 Real Estate 13,936 53,800 TOTAL 257,180 97,418.00 634.33 Energy 12,690 43,500
Finance Income Earned by BPI 25,000 25,000 (Total ₧643.33 million) Financing %
Telecommunications 8,150 25,000 a Finance 88.98 14% a Infrastructure 1,517 11,000 b Conglomerate 81.48 13% b c Property/Real Estate 62.21 10% Retail Services 2,982 7,500 i d Manufacturing 31.21 5% Food 3,310 6,900 e Telecommunications 30.69 5% 634.33M c 1,313 1,600 Manufacturing f Infrastructure 19.94 3% d h g Retail Services 115.35 18% 20 60 80 100 120 e h Food 111.95 18% f g i Energy 95.52 14%
58 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 59 Strengthening Business Resiliency Feature
BPI served as joint issue manager, lead underwriter and bookrunner for Century Pacific Food Inc. (CPFI), when it went public in May 2014. CPFI is the recognized market leader in canned fish, canned meat and milk products and the pioneer of the country’s tuna Since business resilience is vital to continuing are correctly considered and industry players, export business. countryside development, the Bank has partnered including businesses, are able to make informed with the World Wildlife Fund for Nature- assessments of climate change impacts and CPFI’s initial public offering (IPO) in May Philippines for conducting studies that measure realistically plan their sustainability strategies. 2014 garnered an overwhelming response the climate vulnerability of major cities in the both from institutional and retail investors. Philippines outside of Metro Manila. Research has so far covered Laoag, Baguio, It was more than 3.5 times oversubscribed. Dagupan, Santiago, Angeles, Batangas, Naga, The initial offer was 229,654,404 shares for Entitled “Business Risk Assessment and the and Puerto Princesa in Luzon; Cebu, Iloilo and a total offer size of ₧3.16 billion. Following Management of Climate Change Impacts,” a Tacloban in the Visayas; and Cagayan de Oro, the strong investor demand, the IPO price total of sixteen cities to date have been assessed. Butuan, Davao, General Santos, and Zamboanga settled at ₧13.75 per share, on the high end of The study ensures that climate change impacts in Mindanao. the ₧12.50-14.50 per share price range. BPI successfully executed the transaction within four months.
On its first trading day, CPFI reached a peak of ₧16.04 and closed at ₧15.20, up 10.55% from the IPO price. Trading volume was at 60.8 million shares or about 26% of the outstanding Raising Capital for shares issued. a Food Manufacturer The IPO’s proceeds will be used for CPFI’s capital expenditure, working capital, potential acquisitions, and debt repayment. The IPO is a prime example of how BPI’s support to the business sector stimulates growth in the economy, creates employment and eventually impacts the community. The partnership of CPFI and BPI Capital highlights their common values of management excellence, corporate social responsibility and openness to innovations.
60 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 61 Making Headways into Low-Carbon Economy
FS8
In the Philippines, power generation is the biggest We measure the impact of our various sustainable MAJOR SUSTAINABLE ENERGY FINANCING PROJECTS source of carbon emissions. Yet, according to energy finance projects using three indicators: the Department of Energy (DOE), our country has about 250,000 MW of untapped renewable • financial value - our business returns energy (RE) capacity (National Renewable Energy expressed in terms of loan amounts; ₧2.3B Construction of Board Presentation on RA9513, Renewable Energy • socio-economic value - the value our ₧2.9B Management Bureau - DOE). clients generate as a result of the financial resilient poultry Wind services we provide; and facilities BPI contributes to tapping this RE potential • environmental value - the total reduction capacity through the development of products and in carbon emissions as a result of these solutions that encourage investments in sustainable projects. energy. BPI’s partnership with World Bank ₧1.8B affiliate, International Finance Corporation (IFC) From 2010 to end-2014, BPI approved loans for ₧1.6B Solar enabled the bank to get more deeply immersed 174 projects, amounting to ₧27.53 billion. Of Mini-hydro in sustainable energy such as renewable energy, this amount, 58% financed 110 energy efficiency energy efficiency, and climate finance. projects, 34% funded 51 renewable energy ₧0.9B projects, and the 8% funded 13 projects relating to Geothermal Through BPI’s Sustainable Energy Finance building resilience in agriculture and water supply. (SEF) Program, companies can invest in new By end-2014, a total of ₧22.8B SEF loans have technologies aimed at improving the efficiency been released. ₧0.7B ₧1.5B ₧15.8B of energy generation, distribution and use, and Biomass Biogas Energy efficiency thereby cutting costs. SEF-financed projects These projects are seen to generate 1,058 GWh of in buildings and have also significantly contributed to the bank’s renewable power and save 234 GWh of electricity in manufacturing finance portfolio. valued at ₧3.5 billion in annual financial benefit to our clients, preventing 813.5 thousand tonnes of carbon emissions from being emitted every year Renewable Energy throughout the project life. Energy Efficiency Climate Resilience
Renewable Energy Produced
Sustainable Energy Financing and Power Saved (GWh) Annual Financial Savings GHG Avoidance (thousand tCO2e)
₧2.3B 8% 234 18% ₧0.90B 76 26% 9%
1,292 ₧9.3B 27.5B ₧3.5B 813 34% GWh
₧15.9B 1,058 ₧2.59B 737 58% 82% 74% 91%
* Total SEF loans released as of end-2014 reached P22.8B funding 174 projects.
62 2014 SUSTAINABILITY REPORT 63 Renewable Energy Energy Efficiency
The renewable energy projects we supported per year valued at ₧2.6 billion in annual financial Of the ₧15.9 billion loans for energy efficiency These projects are estimated to save a total of 76.4 include two wind power projects with 51 MW benefits for our clients, including ₧1.17 billion projects, about 78% or of ₧12.33 billion was thousand tonnes of carbon emissions per year. combined capacity at ₧2.85 billion; six mini- from geothermal projects, ₧275 million from provided for the construction of 55 energy efficient hydropower plants with 31.59 MW combined biomass projects and ₧381 million from wind buildings such as hotels, hospitals, warehouses, In terms of cost-benefit, construction of energy capacity at ₧1.61 billion; 17 biogas projects at power generation. malls, among others. About 18% or ₧2.8 efficient buildings and purchase of efficient ₧1.45 billion; and 13 biomass projects at ₧0.68 billion financed the purchase of energy efficient equipment delivers optimal value for both BPI and billion. Biogas projects include waste-to-energy Through these RE projects, some 737 thousand equipment for manufacturing, cold storage and for the environment. (methane capture) models for piggery and poultry tonnes of CO2e emissions are avoided including refrigeration, elevators, among others. About 4% farms. Biomass projects include fuel switch from 215 thousand from biogas projects, 171 thousand and 1% were provided to lighting and retrofit of fossil fuel and refuse-derived fuels production from from mini-hydro projects, 135 thousand from heating, ventilation, and air-conditioning (HVAC) municipal wastes. Biomass includes farm waste geothermal power plant, 59 thousand from wind systems, respectively. such as rice husk, corn and coconut wastes. We projects, and 136 thousand from biomass projects. also partially financed a 20MW geothermal plant In total, these projects are estimated to save 234 and 12 solar energy projects worth ₧900 million In terms of cost-benefit, geothermal power plant GWh of electricity annually valued at ₧898 and ₧1.8 billion, respectively. shows optimal value generation in all three million in annual financial benefits for our clients, indicators – financial value for the Bank, socio- including ₧644 million from efficient buildings Renewable energy projects financed by the Bank economic value for our clients, and environmental and ₧230 million from purchase and installation generates one thousand GWh of renewable power value in climate mitigation. of energy efficient equipment.
RENEWABLE ENERGY FINANCING (₧9.3B) ENERGY EFFICIENCY FINANCING (₧15.9B)
Project Type Loans Provided % Project Type Loans Provided %
Wind 2,850,000,000 31% Construction of Energy Efficient Buildings 12,335,900,000 78%
Solar 1,827,195,615 20% Purchase of Equipment 2,808,897,273 18%
Mini-hydro 1,611,841,520 17% Lighting and HVAC Retrofit 625,450,000 4%
Biogas 1,451,130,000 16% Purchase of EE Vehicles 125,000,000 1%
Geothermal 900,000,000 10%
Biomass 677,200,000 7%
Costs and Benefit of Energy Efficiency Projects
Costs and Benefit of Renewable Energy Projects 15,000 60
3,000 300 12,000 48 Loan amount Loan amount 2,500 250 Annual financial benefits 9,000 36 Annual financial benefits
2,000 200 GHG avoided/year (tCO2e) GHG avoided/year (tCO2e) 6,000 24 1,500 150 3,000 12 1,000 100
in million in thousands 500 50 pesos (tCO2e) Biogas in million in thousands Construction Purchase of Lighting Purchase of pesos (t CO e) of Energy Equipment and HVAC EE Vehicles Wind Solar Mini-hydro Geothermal Biomass 2 Efficient Buildings Retrofit
64 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 65 Climate Resilience Carbon Reduction Financing Cost-Effectiveness Feature
Of the 13 projects funded under this facility, We also look into the carbon reduction cost- Venvi Agro Piggery 11 projects relates to food security, i.e. poultry effectiveness of each project, that is, cost (in ₧ terms)
farms modernization, with a combined loan per tonne of CO2e cut. Investments in biogas and for amount of ₧2.3 billion. A good ₧3.8 million the purchase of energy efficient vehicles proved to be Venvi Agro partnered with BPI for the expansion a 2-site (breed-to-farrow and wean-to-finish) worth of financing was also provided for Bulk most cost-effective in delivering climate mitigation of its sow-level piggery capacity from 1,200 production facility. Once the re-expanded Water Supply Project in Visayas region. options. to 2,400 heads. A corresponding expansion biogas system is fully running, the energy from of its existing biogas system for pig manure the system is more than sufficient to power the
For every tonne of CO2e reduced, biogas projects management is also being established. This is farm’s full operations. Electricity bought from the required ₧294 investment while purchase of energy expected to generate additional electricity from electric cooperative and from diesel generators CLIMATE RESILIENCE FINANCING (₧2.3B) efficient vehicles requires ₧841. In contrast, solar the increased methane production. The farm site is serve as standby backup power. Loans projects require an investment of ₧21,438 to cut one at Sitio 3, Barangay 21 San Agustin, San Nicolas,
Project Type Provided % tonne of CO2e. Ilocos Norte. Electricity Yield and Savings At 2,400 sow level, the estimated waste CCS Poultry Financing acts as a strong incentive for enterprises to production of the farm is 5,306 m3 of gas daily. 2,313,600,000 99.8% House Construction improve their efficiency, deliver better quality goods Maximum yield is 11,520 kWh per day or an and services and invest in innovation. BPI has sought average of 376 kWh. The piggery is estimated to Bulk Water 3,800,000 0.2% to make financing for sustainable energy projects require 600 kWh for its full operation. Supply Project more visible and accessible. Every year, we continue to endeavor to bring sustainable energy financing to Biogas Technology Benefits scale. As a source of renewable energy for its piggery operations, the biodigester system has been a successful venture for Venvi Agro’s previous 1,200 sow-level capacity. The expansion is seen INVESTMENT COST PER TONNE OF CO e AVOIDED 2 to take the farm to a higher level of success. The biodigester system provides environmental and 25 health benefits and allows for operational cost 21.44 savings. Venvi Agro is a good bio-technical model 20 for biogas digester system adoption.
15 14.79 Business and Community Benefits 11.67 8.70 The new system provides environmental, health, 10 and financial benefits including: 6.19 6.44 5 • High efficiency renewable power generation 2.43 1.43 BPI provided funding for the piggery farm from biogas 0.84 0.29 in thousand expansion that includes the biogas system. The • Reduced operating costs pesos electricity yield from the expansion would allow • Odor control and improvement of discharge Solar Wind
Biogas the biogas system to be the facility’s main power water quality Biomass Mini-hydro
Geothermal source for farming operations. • Jobs generation in areas of operation • Improved environmental and sanitation Efficient Buildings Efficient The Venvi Agro pig farm utilizes the best conditions Construction of Energy Energy of Construction Purchase of Equipment Equipment of Purchase Purchase of EE Vehicles of Purchase technologies for optimal operations even with • Reduced incidence of water borne diseases Lighting and HVAC Retrofit Retrofit and HVAC Lighting extreme variations in weather. The piggery is ENERGY EFFICIENCY RENEWABLE EFFICIENCY
66 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 67 Feature
RASLAG Corporation 10MW Photovoltaic Power Plant
RASLAG Corporation built a 10MW Carbon Savings Photovoltaic (PV) Power Plant in Barangay The clean energy generated by the power plant Suclaban, Mexico, Pampanga, Philippines saves 6,537.15 tons of greenhouse gas (GHG) through the BPI SEF Program. It is the renewable emissions annually. energy subsidiary of Angeles Power, Inc. Benefits Partnering with BPI • This project is seen to expand access to BPI provided construction funding to the solar electricity and help reduce energy imports project. The PV power plant is seen to enhance and dependence to fossil fuels. energy security and address climate change • It provides a model that directly fills a gap concerns in its area of operations. in the Philippine energy shortage scenario. • Homes and business are provided secure raslagCapacity case study clean electricity using an alternative supply It has an output capacity of 14,527 Mwh/year. At to replace diesel-powered generation. a 99.5% plant availability, it generates an annual production of over 11,800 MWh. Let’s enhance our CARE systems
70 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 71 arnering a greater share of the mass market is a challenging task–with more Gaccounts to serve, transaction costs could increase, and delivering high-quality services may be compromised. This challenge drove us to innovate and develop a more convenient, accessible, reliable, and efficient (CARE) client servicing systems.
Our diverse channels are designed to suit our customer’s lifestyle. We provide channels that are accessible anywhere, anytime at the convenience of our client’s homes, offices, or while in commute – that significantly lower our operating costs. We aggressively invested in the right IT infrastructure to ensure reliability of these transaction platforms. These embody the utmost care we have for our customers.
Apart from our traditional transactional platforms (branch, ATMs and cash deposit machines), we offer digital banking services, including online banking, mobile banking and phone banking for both retail and corporate clients. These platforms allow for secure deposits, withdrawals, bills payments, reloading of cell phone credit and prepaid cards, cash transfers, and remittances, making saving and investing easier for our clients.
In 2014, the use of electronic transactional channels by our clients rose by 3%. Of the 721 million in total transactions recorded last year, some four out of five (84%) were made via any of the electronic channels. Only one out of five (16%) was carried out through traditional channels.
120% 261% 154% increase in mobile increase in non-financial increase in usage of BEA app enrollment transactions done through online appointments mobile app
2014 SUSTAINABILITY REPORT 73 Banking Anytime, Anywhere Web-Based Banking
BPI offers its clients highest banking convenience Financial transactions include fund transfers, sale Like mobile banking, our web-based More and more of our clients are opting to with its mobile banking services through SMS or and/or purchase of investment, prepaid phone transactional platform, BPI Express Online go paperless, helping us reduce our resource mobile app. The BPI Mobile App is currently the reloading and bills payments; non-financial (EOL) is a convenient banking channel that may consumption. Some 6% of our credit card account country’s most downloaded financial application at transactions include viewing of account balances be used in any location with Internet access. holders, or 38,802 clients, have taken this route, the App Store, Google Play and Blackberry World. and transaction history. resulting in considerable savings on paper, printing It is rapidly changing the face of Philippine banking With the Internet increasingly becoming available and delivery amounting to ₧8.2 million a year. as it allows people to transact while on the go. The Bank has continued to invest to improve throughout the country, EOL is able to provide In addition, 9,164, or 11%, of our investment the system, from ₧8.1 million in 2012, to ₧38.9 more and more Filipinos with convenient and account holders have gone paperless, resulting in BPI app users grew by 322% to 278,013 in 2013 million in 2014. The investments went toward speedy access to banking services. The facility has savings worth ₧793,255 a year. and by 120% to 611,248 in 2014. Currently, nine maintaining the IT system, developing new app not only helped the Bank save on costs for brick- out of 10 subscribers actively use the app. features and promoting the mobile service to the public. and-mortar branches construction in far-flung In 2014, we invested ₧24.5 million for the communities, it has also allowed more Filipinos continuous improvement and promotion of EOL; to cut down on expenses and on carbon footprint ₧47.4 million in 2013; and ₧29.9 million in 2012. generated by actual visits to physical branches. Valuing our Customers’ Time Number of Transactions Express Online Transactions in millions in millions In 2014, EOL recorded 143.9 million transactions, a 13% increase from 2013. Investors According to the 2013 FMSI Teller Line Study, have increasingly been using this platform. In the average bank customer waits for two to three 2014 118 2014 603 143.9 2014, investment transactions numbered 349, hours for every transaction, while the transaction 2013 479 116 2013 127.1 595, a 76% increase from the previous year. itself lasts four minutes. To address this, the Bank has pioneered an online solution within the EOL Electronic Channels Traditional 2012 121.3 BPI Credit Card applicants have also taken platform that allows clients to make appointments advantage of this platform. In 2014, online for bank visits. This solution is called BPI Express applications reached 4,072, an increase of 56% Assist Online, or BEA Online, an enhancement of Clients enrolled in App from 2013’s 2,617 applications. Deposit accounts our BEA services. opened via BPI Direct, BPI’s Internet-based bank 2014 611,248 subsidiary, increased by 11%, from 37,837 in BEA Online significantly reduces the customers’ 2013 276,013 2013 to 41,957 in 2014. waiting time in our branches and allows our 2012 65,939 branch personnel to serve more clients. In 2014, a Electronic statements for deposit, credit card total of 248,851 transactions were done through 200k 400k 600k 800k and investment accounts and images of negotiated BEA Online Appointments, representing a 154% checks, are viewable in the EOL; in 2014, increase from the previous year. transactions to view these statements numbered 148,209.
Mobile Transactions Non-financial Financial
2014 67 9 2013 BEA Online Appointments Transactions 2012 19 3 3 1 2014 248,851 20 40 60 80 2013 97,807
100k 150k 200k 250k 300k
74 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 75 Cash Management Solution for Business Feature
Excellence Award for Our Retail Financial Services
Our corporate clients may also carry out Last year, 2.5 million online payment transactions transactions via BPI ExpressLink or ELink, an amounting to ₧320 billion were done via ELink. Internet-based financial management solution for businesses of all sizes. SMEs as well as large With ELink, business owners can now devote corporations benefit from this efficient and secure more time to grow their ventures. cash management and disbursement system, built on work simplification and automated straight- Our continuous marketing efforts through through processes. roadshows and presentations have resulted in the growing number of ELink clients. Functions enabled by ELink include inquiry of deposit accounts’ balances, data file transfers, fund By December 2014, a total of 21,610 clients were transfers, payroll uploading, tax payments, and enrolled in ELink, up 19% from the previous year. collection and payment transactions. Payroll transactions accounting for 80% of our In 2014, ELink handled 26.5 million account total number of ELink transactions reached 27.2 inquiry transactions, including viewed and million in 2014, up by 16% from 23.4 million downloaded bank statements. in 2013. In terms of peso amount, total payroll coursed through the channel totaled ₧289 billion ELink also provides an efficient financial in 2014. transaction channel for the supply chain. Corporate clients can pay service providers and Our expenditure to continuously improve and Bank of the Philippine Islands was named the these solutions is the BPI Express Assist, an suppliers who are maintaining BPI accounts by promote ELink in 2014 amounted to ₧9.5 Best Retail Bank in the Philippines and Best automated queuing system that significantly simply crediting to their accounts online, in real million, from ₧21.5 million in 2012. Payment Product Awards 2014, in The Asian reducing transaction time. time. It does away with the lengthy and costly Banker’s 13th International Excellence in Retail process of individually preparing, printing and Financial Services 2014 Awards. The Asian Banker also cited BPI’s high signing of checks and vouchers. electronic banking activity, with 84% The Bank was cited for its outstanding financial of the Bank’s client transactions now Top 20% Corporations performance as a result of revenue and profit done electronically. 30% growth, higher fee income and reduction in Number of Transactions cost-to-income ratio. The Bank’s Current and The Asian Banker also named BPI My ePrepaid In millions Savings Deposit Accounts also grew by an MasterCard as the Best Payment Product for impressive 43%, increasing its market share to 2014. This card, which is meant to address 21,610 2014 27.2 21.28%. the shopping needs of those who don’t have credit cards, contributes over 50% of business Accounts enrolled 2013 23.4 in 2014 The awards also took note of the Bank’s efforts revenues for BPI Prepaid card with 1.6 million 2012 18.8 and innovative solutions to consistently cards activated to date. MSMEs deliver cost-efficient services to clients. Among 70%
76 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 77 Transparent and Reliable Remittance Services
The Bank salutes the sacrifices that overseas Filipinos (OFs) who take on job opportunities abroad in order to give their families a more comfortable life and a better future back home. The remittances that our foreign-based compatriots send back, account for 10% of our GDP (World Development Indicators 2014, World Bank) and is the country’s largest source of external funding. Such immense contribution requires a reliable and efficient remittance system and network, a need that our Remittances and Payments team has sought to answer.
Our remittance business has enabled fund transfers remitting money—for example, language barriers, In addition to offering remittance services, we Looking after our Filipino Seafarers to be received within 24 hours of sending via identification requirements to open a foreign local conduct “pre-departure orientation seminars” straight-through processing, branch pick-up and bank account, and expensive cross-border transfer (PDOS) for those about to embark on their work The close to 600,000 Filipino seafarers we have door-to-door delivery alternatives. fees—for clients remitting their funds via direct- stint abroad. PDOS are focused on the basics of today are estimated to represent 30% of the total to-account arrangement. money management and are held in what we call number of seafarers in the world. No less than The growth in this business is testament to its BPInoy information centers in our business and 20% of remittances sent to the country annually efficiency and reliability. In 2014, remittance Broad Network of Business Partners satellite offices in the country and abroad. BPInoy are from these seafarers. volume and transaction count grew by 11% and centers also provide information on our various 10%, respectively, giving us a 29-percent share of Our network of international business partners has remittance services, banking products and services, In 2014, the Maritime Industry Authority the remittance market. grown from 129 in 2012 to 140 in 2014, while and investment opportunities for the OF. (MARINA), the government agency tasked our domestic distributor partners doubled to 10 Maintaining the Bank’s international reach is with developing, promoting and regulating the Transparent and Reliable in 2014. These partners help us reach underserved a product of several sales channels, including country’s maritime industry, partnered with the areas, especially where we don’t have a branch. remittance tie-ups, BPINOY regional partnerships, Bank to deliver personal financial management Our fixed remittance fees and foreign exchange Through this network, we provide adequate online applications, and its largest segment–the and financial counseling programs for our seafarers. rates enable our clients to calculate market prices foreign and local payment financial infrastructure offsite sales channels, which serve the land-based as These programs help ensure that overseas Filipinos and make informed decisions about our services. so that the remittances are safeguarded, sent and well as the sea-based OFs. and their families reap the benefits of the OFs’ We remove the difficulties formerly associated with received quickly. hard-earned funds in a positive and enduring way.
Customers Served 211,676 165,825 160,288
2012 2013 2014
78 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 79 Testimonials
Reggie Guillen has been working in Doha, Gerald L. Flora is a veteran Master Mariner Qatar for more than three years now. He working on board of one of IMS Philippines has been remitting funds through BPI since Maritime Corporation’s oil tankers. Wishing receiving his first salary in May 2012. a better life for his family, in 1997, Gerald embarked on working abroad, in search of “BPI makes my banking transactions so much higher-paying employment. easier and faster,” Reggie says. “I can do online bank transfers to my other BPI accounts, as Steadfast on his financial goals, Gerald sought well to the BPI accounts of my loved ones from a reliable bank through which he could remit the comfort of my home, while abroad.” funds to his family. For 18 years now, he has done so through BPI. Reggie notes the security features of BPI’s online services and their reasonable and Gerald says that his loyalty to the Bank competitive remittance fees. “I trust BPI has been matched by the latter’s “secure, so much that majority of my accounts are convenient, prompt, and reliable service.” with them—savings, UITF, housing loans, He finds assurance in the Bank’s stability, credit cards. In addition, its over-the-counter saying it is easier for his beneficiaries to transactions are more convenient than any receive his remittance through BPI, in as other bank in the country,” he says. “BPI has fast as “less than a day.” one of the best banking services, if not the best, in the Philippines today.” Gerald also commends the Bank’s fair Reggie Guillen Gerald L. Flora remittance fees and competitive exchange rates. Adding that the process of subscribing and redeeming investment funds from BPI is so easy Apart from providing well for his family, Assistant Vice President and convenient, Reggie has recommended BPI’s Veteran Master Mariner Gerald wants his money to work as hard as he Hamad Medical Corporation products to other Filipinos working abroad. IMS Philippines Maritime Corporation does. With his savings, he is able to invest in stock trading and UITF. He relies on the Bank’s Reggie says that on those occasions when he timely market updates and knowledgeable had to ask the Bank to resolve certain issues, fund managers to maintain the security of such issues were resolved “in no time.” his accounts and grow his funds while he “I believe that BPI’s remittance “I feel secure with BPI’s services. works overseas. fees are reasonable It is safe, reliable, on time, and competitive.” and convenient.” “I feel secure with BPI’s services. I haven’t had any security issues with them,” says Gerald. He has recommended BPI to his fellow OFWs “for the same reasons I chose the Bank—its safe, reliable, on-time, and convenient banking service.”
80 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 81 Let’s empower our people and society
82 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 83 eople have always been BPI’s valued asset—their integrity, professionalism and Ployalty are the foundations of our competitive advantage. In 2014, the Board approved the Bank’s new Credo, which further underscores our emphasis on mutual respect, teamwork and meritocracy to drive outstanding performance and employee retention. Furthermore, an integral part of our HR strategy is the development and adoption of innovative approaches to promote well-being of our people, and to stay as the employer of choice within the banking industry.
We also offer mechanisms that enable Unibankers to reach out to the communities where we are and help address development challenges in these areas.
93% over 3,000 Sustainable Engagement survey employee volunteers for response rate BPI BAYAN projects
2014 SUSTAINABILITY REPORT 85 Engaging Our Employees
Our Human Resources Management (HRM) Group leads our employee management programs. We BPI’s Sustainable Engagement Index employ strategic and systematic approaches to maintain high levels of employee engagement. Career 100% advancement trainings and development programs are provided for our employees regardless of their 85% 84% 83% tenure and rank. A wide range of mandatory, functional, leadership and core courses are being offered. We 81% 80% have also built partnerships with the Harvard Business Publishing for customized programs. 60%
We have promotion acceleration programs, interests clubs, volunteerism platforms, as well as health and 40% wellness seminars. 20%
Various loans and facilities are also accessible to our employees. Team and individual medical insurance 2010 2012 2015 2015 plans are also provided for. Financial wellness is an achievable goal for our employees from day one, Benchmark* until their retirement. They have opportunities to participate in seminars that help them make informed decisions on investing or entrepreneurial planning. *2015 Benchmark is Tower Watsons’ global norm among Financial Services Companies.
Being aware of our performance is important for us as employer. High level of employee satisfaction drives our business success. Data that we gather helps us focus our actions toward areas needing our attention.
Employee Engagement Survey Our Performance
We gauge our performance as an employer by In our 2015 survey, 13,245 employees comprising our ability to keep our employees highly engaged. 93% of total employees provided a response. This Since 2010, we measure employee engagement is ten percentage points higher than global survey through a survey administered by a third party– response rate. Overall, the Bank’s sustainable Towers Watson, a leading professional engagement score is at 84% which represents the services firm. number of respondents who consider themselves sustainably engaged. This is a percentage point We adopted Tower Watson’s Sustainable higher than the global norm of financial Engagement framework which indicates how services companies. well we create a work environment that keeps our employees energized, enabled, and engaged to contribute positively to our overall objectives as a financial institution.
Our understanding of our performance on these three levels of sustainable engagement enables us to find better engagement approaches and prioritize initiatives that will significantly raise our ability to keep our employees highly engaged.
86 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 87 Engagement Drivers
Our sustainable engagement performance is shaped mainly by our scores on three key drivers, as follows: 2012 2013 2014
Key Drivers Our Definition Our Performance
Work Tools and Efficiency Measures our effort to make the Bank’s operations and 84% STAFF processes more streamlined and cost-effective.
Involvement and Relates to the management trust placed on employees and 81% Empowerment the level of authority they have to do their job well. MIDDLE MANAGEMENT Strategy and Direction Pertains to the clarity of management direction and the 88% level of optimism about the future of the Bank.
SENIOR MANAGEMENT These drivers have the most influence on the level of energy, enablement, and engagement of our employees towards the Bank. We continually look for ways to improve our performance on these drivers, by looking into the many other influencing factors such as our ability to provide career development, training, fair appraisal, and promotion of most competent employees. We set specific metrics and = 6 hours indicators to track our progress on these areas. Average Training Hours per Employee Category G4-LA9
Career Development and Opportunities Level 2012 2013 2014
Staff 42.4 29.15 35.99 BPI continuously provides its employees opportunities for professional growth and career development. We track our performance on this aspect using indicator such as average training hours, number of Middle Management 62.23 39.69 37.08 promotions, and average time in rank. Senior Management 55.95 17.57 12.69 Average Training Hours Overall, we are steadily moving closer to The Bank’s HRM Group monitors the total our ideal of 40 hours, or five days’ worth of and average training hours provided per training hours for each employee yearly. employee. Promotions In 2014, Unibankers underwent a total of Annually, we are able to carry out promotions, To Assistant Number of Promotions 2012 2014 525,077 hours of training. On the average, demonstrating the Bank’s ability to develop Manager each of our 14,532 employees received 36.11 and prepare employees to take on higher training hours. responsibilities and roles. To Manager
Staff-level employee trained for more hours in In 2014, there were 948 promotions across 2014, on average reaching 35.99 hours, 23% all ranks, a 47% increase from 644 promotions To Senior To AVP To VP To SVP To EVP more than the 29.15 hours recorded in 2013. in 2012. Manager Average training hours of middle and senior management officers declined by 7% and 28%, 290 | 494 204 | 258 83 | 110 42 | 62 17 | 20 7 | 3 1 | 1 respectively.
88 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 89 Average Time in Rank We continually review the progress of the careers of our employees to enable deserving employees to move up faster in the organization.
We use metrics such as average time in rank–the length of stay in a rank before promotion–to track our performance. From 2012 to 2014, the average time in rank of our employees improved on the average by two years for most levels.
8 Number of Years in Rank 2012 2014 6
4
2
Assistant Manager Senior AVP VP SVP EVP Manager Manager
90 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 91 Our Employee Statistics Employee Breakdown by Region G4-10 2012 2013 2014
Mindanao 578 679 752
Our total employee headcount grew by 12% from Visayas 896 1,023 1,203 13,000 in 2013 to 14,542 in 2014. Year-on-Year Employee Headcount Luzon 10,932 11,298 12,587 G4-9 Of our total employees in 2014, 70% are females 14,542 and 30% are males. Forty-nine percent are below 30 13,000 years old, 43% are between 30 to 50 years old, and 12,406 Employee Breakdown 8% are over 50 years old. by Employee Category G4-10 2012 2013 2014 Eighty-seven percent of our current employees are in Luzon, 8% in Visayas and 5% in Mindanao. Sixty- Senior Management 169 168 180 two percent of our employees are staff level, 37% Middle Management 3,689 4,695 5,410 belong to middle management and 1% are in senior 2012 2013 2014 2012 2013 2014 management. 2012 2013 2014 by region by employee category Staff 8,527 8,161 8,952
Employee Breakdown New Employee Hires New Employee Hires by Age Group by Age Group by Region G4-10 2012 2013 2014 G4-LA1 2013 2014 G4-LA1 2013 2014
Over 50 years old 578 1,097 1,115 Over 50 years old 11 16 Mindanao 115 164
30 to 50 years old 896 5,854 6,264 30 to 50 years old 152 226 Visayas 132 236
Below 30 years old 10,932 6,049 7,163 Below 30 years old 1,771 2,748 Luzon 1,685 2,590
Employee Breakdown, by Gender New Employee Hires, by Gender G4-10 G4-LA1
2012 8,623 3,783 2013 604 1,330
2013 9,146 3,854 2014 989 2,001
2014 10,164 4,378
92 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 93 Employee Turnover, by Gender Diversity in the Senior Management Levels As of 2014, of the 2,990 new employee hires, 67% percent are below 30 years old, 57% are between G4-LA1 G4-LA12 are females and 33% are males. Nearly 92% of 30 to 50 years old, and 11% are over 50 years old. them are below 30 years old, 7% are between 30 In the case of our staff, 73% are females and 27% 2013 2014 Female Over 50 years old to 50 years old, and less than 1% are over 50 years are males. Sixty-one percent of them are below 30 Male 30 to 50 years old old. Eighty-seven percent of them are in Luzon, years old, 35% are between 30 to 50 years old, and 512 486 8% in Visayas and 5% in Mindanao. 4% are over 50 years old. by gender by age group Our turnover rates in 2014 indicate that out of On the other hand, 51% of our Senior 1,472 employees, 67% are female and 33% are Management are male and 49% are female. male. Seventy-one percent of them are below 30 Among them, 65% are over 50 years old and 35% years old, 19% are between 30 to 50 years old, are between 30 to 50 years old. and 10% are older than 50 years old. Eighty-nine percent are from Luzon, 5% are from Visayas and In 2014, collective bargaining agreements covered 88 92 63 117 6% from Mindanao. 95% percent or 8,516 staff level employees out of a total 8,952. BPI recognized twenty-five (25) 2012 2013 In 2014, employees in our Middle Management labor unions during the reporting year. G4-11 consist of 66% females and 34% males. Thirty-two
Diversity in the Middle Management and Staff Levels G4-LA12 6,514 Employee Turnover Employee Turnover 5,444 by Age Group by Region 3,562 G4-LA1 2013 2014 G4-LA1 2013 2014 1,848 3,085 Over 50 years old 151 143 Mindanao 50 83 2,438 3,116 Over 50 years old
30 to 50 years old 315 278 Visayas 60 80 1,719 30 to 50 years old 606 392 Below 30 years old 849 1,051 Luzon 1,205 1,309 Below 30 years old
by gender by age group by gender by age group
Middle Management Staff
94 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 95 Uplifting the Social and Economic Well-being of Filipinos
We envision a nation that is made up of self-reliant, financially healthy and empowered communities. The BPI Foundation has several initiatives in place that directly engage and advance education, entrepreneurship and environmental sustainability. These programs run parallel with the Bank’s products, services and innovations resulting in financial wellness and economic empowerment synergies.
BPI BAYAN G4-SO1
One of our important programs is our unique employee volunteering platform, BPI BAYAN (Bayanihan Para sa Inang Bayan). Our employees get to create and facilitate programs that address the needs of local communities in all areas where we have existing branches.
How do we do this? BPI BAYAN’s Program Features 2014 Project Highlights
• Stakeholder and Needs Identification Management support is provided by In 2014, 65% or 31 of our branch business areas Unlike most community organizing and the area head through BPI BAYAN and 8 head office-based business units undertook volunteering practices where employees are group leader. BPI BAYAN projects across five focus areas— encouraged to be participants of already education, livelihood, health, financial wellness, established projects, BPI BAYAN inspires Volunteer managers are nurtured through and the environment. and activates employees to identify their annual workshops or summits organized own beneficiaries with the most pressing by the Bank. A total of 11,007 volunteer hours, or 459 days, needs in their local community. These were rendered by 21% of all BPI employees. needs are assessed and determined through Recognition, in the form of annual community consultations, site visits, awards, trophies and cash prizes, is given BPI BAYAN 2014 SERVICE AREA HIGHLIGHTS surveys, and interviews with key persons of to best-performing and most relevant Volunteer the locality. community projects. Pillar Hours Key Outcomes
• Implementation Campaign platforms such as the company Education 3,741 583 students and Based on the results of the assessments and intranet and BPI BAYAN Facebook page beneficiaries of various consultations, employees conceptualize, are used to promote its projects and learning materials, tools, organize and deliver the project that endeavors internally and externally. scholarships, etc. addresses the help or service that the Livelihood 2,596 967 attendees of the community needs. This way, we assure Monitoring and evaluation is ensured livelihood training that the projects carried out are relevant to by the quarterly reports submitted by programs* the communities where BPI employees live various group leaders; these reports and work. are then consolidated and reviewed Health 1,847 166 beneficiaries by the BPI Foundation. The reports • Funding contain comprehensive information on Financial 1,790 1,519 participants from low- Even as the Bank owns the BPI BAYAN needs identification, project objectives, wellness income families program, each group of BPI volunteers fund-raising, partner engagement and is tasked to design their own approach management, project implementation Environment 1,034 868 members of local communities towards funding their project. This metrics, impact assessment, project motivates employees to enhance their sustainability methods and features, as well management skills, resourcefulness, and as testimonials from the stakeholders. *Participants were mostly parents, women, housewives, visually impaired persons, alternative learning system students, outsourced interpersonal relations to ensure the success security and maintenance personnel. Training programs conducted of the project. include candle, rag, soap, and craft making, paper weaving, hair cutting, hair coloring, snap hydroponics, reflexology, etc.
96 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 97 Feature
The Challenges area. This gives them a greater opportunity to sell their products and earn extra income. The Generating the necessary funds to procure bamboo fisherfolk association has also become a well-known fences and other materials for the nursery was the mangrove supplier to government and private group’s biggest challenge. By spreading the word organizations. The nursery has become a viable on the need for support and conducting several source of additional income for the fishermen. fund-raising activities, the members were able to secure the resources needed to deliver on their TESTIMONIALS commitment to the residents of Barangay Tuburan. “We are grateful for BPI for this project that The Results was introduced to our barangay. Because of this, more associations have been encouraged to do the The group completed 2 mangrove planting same–putting up nurseries and conducting tree- activities, set up 2 nurseries and conducted several planting activities. This serves as a wake-up call for financial wellness seminars for the residents. the people in the community to develop awareness on the importance of our natural resources. If an An Inspiration to Others organization like BPI can invest time in taking care The success of the project has enticed many of the mangroves in our barangay, then our people Oplan: Save Tuburan organizations in the region to take part in the are expected to give 101% effort in taking care of planting activities–schools and universities, local their environment. To date, the roads have been Barangay Tuburan is a coastal community of 835 first batch of mangrove seedlings to be planted government units (LGUs), the Armed Forces of the repaired and this is protected by the mangroves families in Negros Occidental that used to be along the shore. They gathered people from Philippines, and others. The local government has planted through the BPI BAYAN project which lushed with vegetation in the 90’s but has become various local organizations and other BPI constructed a concrete pathway which replaced the line the coastal area of Barangay Tuburan. This degraded due to human activity. The locals’ main employees from branches and offices within makeshift bamboo bridge used to reach the project shields the area from strong waves and prevents soil source of livelihood is fishing. Hence, protecting the area as manpower for the mangrove planting. site. Other barangays have also invited the group to erosion. Thank you BPI BAYAN. Mabuhay kayo!” the area’s coastal ecosystem is a major concern. The Bamboo fences were set up to protect the newly- implement similar projects for their communities. barangay captain espacio Tuburan Fisherfolks and Mangrove Development planted seedlings from barnacles. An agriculturist from Antique approached the Association (TFAMDA) is an existing community group and expressed his intention to adopt the “At first, I considered the BPI BAYAN project as organization that aims to rehabilitate and protect In preparation for the next planting season, the project in his community. just another task that I was assigned to lead. But as Tuburan’s mangrove ecosystem. nursery was replenished with propagules taken we conducted the various activities, BPI BAYAN from grown up mangroves. The propagules Recognitions has become an integral part of our existence in The Project are cultivated in the nursery to ensure that the The project was featured in 2 local newspapers and BPI. I take pride in being involved in such a seedlings are healthy and strong enough to Barangay Tuburan was awarded as one of the most marvelous endeavor. We are happy to reminisce the things we have done and are extremely BPI BAYAN employee volunteers from the Negros withstand erosion and are able to provide the environment-friendly barangays in the province of enthusiastic about laying down our hopes and Occidental cluster wanted to provide a sustainable ideal environment for fish to breed before they are Negros Occidental. aspirations for the project. It was a humbling program for the rehabilitation and maintenance of planted along the shore. Working with TFAMDA, experience to be appreciated by the local residents the mangroves by establishing a mangrove nursery. the employee volunteers help oversee the newly- Impact on the Residents planted seedlings and propagules in the nursery to Residents are very happy because of the ripple on how we were able to influence them to give ensure high survival rate. effect brought by the project. With raised back to Mother Earth.” The group’s first step was to seek assistance from sol evelet orciso, bpi volunteer consciousness, more and more people visit the the Provincial Agriculture Office in acquiring the group leader
98 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 99 Let’s use resources efficiently
100 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 101 he Bank recognizes its role as a responsible financial institution both a resource Tuser and generator of waste. In our business operations, we reduce our negative impacts to the environment through responsible environmental leadership across the organization, making us more cost-effective and helping improve our margins.
We have put in place a system of tracking the environmental impacts of our places of business. We also encourage our clients, suppliers and partners to reduce their own environmental footprint.
Data on energy and water consumption of our branches and kiosks are consolidated per business area. Those of our head offices are being monitored by our General and Administrative Shared Services (GASS) unit. In addition, we continually explore behavioral and technological interventions to reduce our resource consumption such as the replacement of centralized air-conditioning systems with more energy- efficient technology.
38% 5% 33% decrease in fuel decrease in electricity increase in number of consumption (gensets) consumption local suppliers engaged
2014 SUSTAINABILITY REPORT 103 Managing Our Supply Chain Energy Consumption Fuel Use of Transport G4-12, G4-EC9 G4-EN3, G4-EN4 Armored Vehicles
GASS keeps a record and manages all the service By following this procedure, the Bank and its The energy we consume comes in the form of Fuel consumed by the armored vehicles of providers, contractors and suppliers the Bank suppliers are made aware of ethical, environmental purchased electricity and fuel used in our backup our contractors is also monitored by the Bank engages. We enforce strict and detailed supplier and social risks and opportunities that relate to generators and armored vehicles. Occasionally, we and computed as part of our GHG emissions. accreditation processes to ensure that our operations and products. The same holds true in run our gen-sets to sustain full operating capacity, The increase in cash requirements for over- suppliers, service providers and business partners the construction of new branches in all stages test our disaster preparedness and carry out the-counter and ATM transactions caused our comply with all legal standards. Our rigorous of work. preventive maintenance. armored vehicle fuel consumption to rise by 11% processes help identify contractors that operate or from 2013. manufacture to recognized quality standards. We In 2014, individuals and entities making up BPI’s In 2014, we reduced our total fuel consumption by seek to use suppliers who, like us, pursue continual pool of suppliers numbers 458, more by 38% 38% with most of the cuts achieved in the branches improvement and commit only to best practices. than the 333 engaged the previous year. Our and cash processing centers. requirements for input materials and services are Throughout the procurement process, we all sourced locally. implement various mechanisms including setting Total Energy Consumption Fuel Consumed by Armoured Vehicles up of accreditation committees, standards covering The Bank paid a total of ₧8.4 billion for the in gigajoules, G4-EN3 in gigajoules, G4-EN4 accreditation criteria, better information on products and services rendered by contractors, Fuel Consumption Electricity Consumption 29,886.30 requirements and documentation, various modes suppliers and other providers. This is 12% more of procurement, and service performance monitoring. than the amount paid in 2013. 8,572.80 6,986.61 26,836.89 4,374.79 25,715.23
VALUE DELIVERY CHAIN FOR NEW BRANCHES AND ACCESS POINTS 2012 2013 2014 2012 2013 2014
Property Planning Sourcing Construction, Turnover Repair Fuel Consumption Head Office and Main Offices Business, cash and processing centers Assessment and and Purchasing, and and in gigajoules, G4-EN3 Branches Tenanted site Design Supplier Implementation Acceptance Maintenance Management 8,378.96 6,802.00 4,199.52
610.17
7,599.42 594.85 Managed suppliers
5,800.97 2014 458
2013 333 2,168.14 2012 399 1,460.85
2012 2013 2014
104 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 105 Saving on Electricity
In 2014, our total electricity 60 consumption decreased by 5%. Electricity Consumption 50 Lower consumption at our branches in gigajoules, G4-EN3 2012 2013 2014 and at the Head Office helped bring 40 down 93.2 gigajoules (GJ) in 2013 to Business, cash and processing centers 1.54 1.64 2.41 91.6 GJ in 2014. 30 Tenanted site 43.66 40.03 36.39
We also replaced centralized air- 20 Head office and main offices 50.63 49.78 44.84 conditioning systems in our head and main offices, resulting to further 10 Branches 98.00 93.17 91.63 reduction in our electricity used. 2012 2013 2014 *2014 data for tenanted site includes BPI Buendia Center only.
60
Reducing our 50
Carbon Footprint 40 GHG Emissions in tonnes C0 e, G4-EN15, G4-EN16, G4-EN27 2012 2013 2014 G4-EN15, G4-EN16, G4-EN17 2 30 Scope 3: Fuel consumed by armored 1,800 1,878 2,092 Our total carbon footprint in 2014 vehicles is significantly lower due to reduced 20 energy consumption—from 32,844 Scope 2: Electricity 37,132 30,518 25,379
tCO2e in 2013, our greenhouse gas 10 Scope 1: Fuel consumed (gensets) 559 448 268 (GHG) emissions went down by
16% to 27,738 tCO e in 2014. *2012 and 2013 data were restated to exclude CO emissions generated from business travels. 2 2012 2013 2014 2
500 400 600
300 700 Water Consumption Conserving Water 200 800 in cubic meters, G4-EN8 2012 2013 2014
G4-EN8 100 900 Business, cash and processing centers 2,510 3,368 5,328 Our water consumption in 2014 Tenanted site 89,068 98,634 68,898 dropped by 39% from 658,542 cu. m in 2013, to 398,763 cu.m. Head office and main offices 133,277 150,464 143,880 The reduction is contributed Branches 303,466 406,076 180,657 mainly by water management strategies in our branches.
106 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 107 Let’s build trust
108 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 109 ur clients’ trust is a strong pillar of our Institution. We nurture that trust through Oopen communication by which we are able to address our client’s financial needs to satisfaction.
In four client satisfaction metrics, our Bank has garnered ratings comparable with those of the best companies in the world.
Best Payment Diamond Award Best Retail Bank Product Award for Marketing Award
94.2% overall Customer Satisfaction Rating
2014 SUSTAINABILITY REPORT 111 Measuring Client Loyalty and Enthusiasm Sigma levels range from 1 (lowest) to 6 (highest). Process Capability Defects per Million Long Term High levels indicate good performance with Sigma Level Opportunities (DPMO) Yield The Net Promoter Score (NPS) is a measure of underlying causes of complaints either avoided the client’s willingness to recommend or promote or mitigated. 2 308,537 69.15% a company’s services to others. Our net promoter 3 66,807 93.32% score increased by 13% from +54.28 in 2013 Sigma levels 4 to 6 are within the 99% percentile to +61.23 in 2014. Only the top two of 283 range, signifying well-established efficiencies 4 6,210 99.38% companies across 20 industries in the United within the organization. Overall, BPI’s States surveyed by the Tempkin Group in its Q3 performance demonstrates sigma levels of 4 or 5 233 99.38% above. Our challenge now is to maintain or surpass 2014 Consumer Benchmark Survey got an NPS 6 3.4 99.99966% of over 60. these levels of efficiencies.
BPI’s +61.23 NPS places the loyalty and Sigma levels of our various transactional channels enthusiasm of the Bank’s clientele to our services at are at par with levels recorded the previous year. Sigma Levels–Channels 2013 2014 par with the world’s best companies. This, by far, Our branches, online facilities, mobile banking is a most accurate indication that our clients are channels, and text (or call) centers continue to be 6.0 happy with the way we manage their money. avenues where we deliver stellar performances. 5.0 4.0 Measuring Customer Satisfaction Sigma levels by product line also remain at the 3.0 same levels with those posted the previous year. 2.0 Our in-house Customer Satisfaction Surveys Deposits, retail foreign exchange currency, funds, 1.0 and leasing had relatively high scores. measure client satisfaction with the use of a ATM Express Mobile Express Express Contact POS BPI Text Branches questionnaire. Questions are standardized Phone Banking Online Link Center Trade Center to ensure they capture product and overall Our Total Quality and Risk Management Offices satisfaction with BPI. For 2014, our rating was and Customer Care unit take care of tracking 94.20% or 3 Sigma level (see Process Capability and monitoring our performance in relation Sigma Levels–Products 2013 2014 Sigma Level Chart). to customer satisfaction. Our policies are fully aligned with BSP’s “Service Code for Consumer 6.0 Measuring Service Standards Banking in the Philippines” (issued 2005); in 5.0 addition, we are working towards full conformity 4.0 3.0 The Mystery Client Survey is another in-house with the regulator’s Financial Consumer Protection measurement tool designed to get customer framework by yearend 2015. 2.0 1.0 feedback on our service standards. Service time, Lifetime Marketing Brilliance Credit Prepaid Debit Deposits Remittance Non Life Consumer Personal Stock Retail Asset Funds Leases grooming and corporate image projection, Card Card Card Insurance Loans Loans Transfer FX Mgmt service readiness, and product/service inquiry Currency are scrutinized in this survey. In 2013, when In 2014, BPI was bestowed the Diamond Award we conducted the most recent survey, we by the Philippine Marketing Association (PMA), TURNAROUND TIME scored 89.92%. for reaching the “pinnacle in marketing brilliance” in establishing and growing the Bank’s business Type of Complaint TAT to Resolve Source Measuring Feedback Objectively in the country. The Diamond Award is a lifetime Undispensed and short withdrawals recognition given by the PMA to companies that We employ Sigma Level analyses for each of our have consistently exhibited marketing excellence. On Us 1 day channels and product lines. Sigma level refers The recognition is twice special—the PMA gave ATM Channel to defects per million opportunities (DPMO). out the one-time award in commemoration of its Local (Bancnet/Megalink) 6 days Applied to customer service quality, Sigma levels 60th anniversary last year. International (MDS/VISA) 45 days are based on the number of complaints received from the total number of transactions, thus serving BPI was one of only five companies who were able Unauthorized withdrawals 2 days Card Fraud as the voice of our clients. to earn the said distinction. CAM complaints 1 day, if Line error and hardware error (up to ₧30K); 3 to 5 days (upon receipt of retrieval ATM Channel report) Hardware error (₧30K and up)
112 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 113 Continuing a Legacy of Leadership Excellence
G4-34
Since 1851, our commitment to clients, people, shareholders, and country remain unbroken. Our high and uncompromising regard for values and ethics in our daily conduct of business make our name a trusted brand of over 163 years.
BPI’s Board of Directors inspires us to operate direction of the Bank’s affairs in the interval framework including financial reporting statutory The Related Party Transactions Committee responsibly, conducting our affairs with periods between Board meetings. It is the key compliance. This committee is composed of at independently reviews, vets and may endorse all transparency and fairness while upholding decision-making committee of the Bank in matters least three non-executive directors, two of whom related party transactions—transactions above and shareholder interests. We exercise prudence relating to governance including, but not limited are independent. beyond those qualifying under directors, officers, following a robust risk management framework, to, consequential, internal and external affairs as stockholders and related interests (DOSRI) allowing us to deliver excellent governance well as the approval of the Bank’s material credit The Risk Management Committee works to restrictions—making sure that these transactions standards while sustainably promoting the business exposures. All decisions remain subject to BPI By- instill risk consciousness in the entire organization. are dealt with on terms no less favourable to and driving our performance. Laws and the limitations prescribed by applicable It provides the governing structure and framework the Bank than those generally available to an laws. The committee is composed of five directors, to identify and manage risks from Board to unaffiliated third party under the same or similar The Board brings together, for the greater benefit one of whom is independent. business unit levels and gives recommendations circumstances. This Committee, along with the of the Bank and shareholders, a mix of leadership, across the Bank through the Chief Risk Officer Executive and Corporate Governance Committees, experience, skills, and diversity. It consists of The Nomination Committee ensures the probity and the Risk Management Office for relevant abides with the Guidelines in Strengthening 15 directors, seven of whom are classified as and competence of the nominees to the Board business risk parameters, metrics and strategy. It Corporate Governance in BSP Supervised independent or having no interest or relationship of Directors. It safeguards the balance of the also oversees compliance with prescribed laws, Financial Institutions (BSP Circular 749). with BPI at time of election, appointment, or re- value additions each board member brings to the regulations and international standards on risk election. Fourteen of these 15 directors are non- Bank and his capacity for independent decision- management. Key risk management personnel are The Retirement and Pension Committee governs executive officers of the Bank and the one executive making. This committee also oversees the review given sufficient technological and training support. all aspects relating to the Bank’s retirement director is the Bank’s President and CEO. of employee qualifications for nominated positions The committee is composed of six directors, four programs—trust, investment, non-investment, requiring Board approval. It is composed of of whom are independent. and administrative. Our Board members are business and civic at least three directors, one of whom must be professionals of significant stature with a track independent. The Corporate Governance Committee assists The President and CEO is responsible for overall record of accomplishment in their own right. They the Board in executing its corporate governance management and devises strategies for turning out deliver a broad range of experience and expertise The Personnel & Compensation Committee responsibilities. It makes sure that the Board desired outcomes for the Bank. on subject matters relevant to the governance of guarantees that the long-term strategies and plans remains true, effective, transparent, and More information on our Board of Directors and Principal Officers may be present-day universal banking institutions. for human resource development are effectively accountable to the governance principles and viewed on our 2014 Annual Report. designed and implemented in support of guidelines expressed in the Corporate Governance Our nine Board Committees provide structure corporate goals and objectives. This committee is Manual. The committee is composed of at least to the Board in the exercise of its duties and composed of at least four directors, one of whom three directors, two of whom are independent, responsibilities or specific focus consistent with is independent. including the chairperson. applicable laws. The Charter and membership assignments are reviewed annually. The Audit Committee evaluates the effectiveness The Trust Committee oversees the capable of the Bank’s internal controls, operating risks, management of the Bank’s innate business risks The Executive Committee exercises the full range and results of internal audits reviews and including trust, other fiduciary business and all authority of the Board in the management and external audits. Its oversight covers the regulatory investment activities.
114 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 115 JAIME AUGUSTO ZOBEL DE AYALA CEZAR P. CONSING FERNANDO ZOBEL DE AYALA OCTAVIO V. ESPIRITU MERCEDITA S. NOLLEDO AURELIO MONTINOLA III
EXECUTIVE COMMITTEE MEMBERS NOMINATIONS COMMITTEE MEMBERS Chairman Jaime Augusto Zobel de Ayala Chairman Romeo L. Bernardo (Independent) Vice chairman Fernando Zobel de Ayala Members Jaime Augusto Zobel de Ayala Members Cezar P. Consing, President and CEO Fernando Zobel de Ayala Rebecca G. Fernando Xavier P. Loinaz (Independent) Aurelio R. Montinola III Vivian Que Azcona Antonio Jose U. Periquet (Independent) Mercedita S. Nolledo
RISK MANAGEMENT COMMITTEE MEMBERS CORPORATE GOVERNANCE COMMITTEE MEMBERS Chairman Octavio V. Espiritu (Independent) Chairman Artemio V. Panganiban (Independent) Members Cezar P. Consing Members Romeo L. Bernardo (Independent) Romeo L. Bernardo (Independent) Mercedita S. Nolledo Aurelio R. Montinola III Oscar S. Reyes Antonio Jose U. Periquet (Independent) Astrid S. Tuminez (Independent) Astrid S. Tuminez (Independent) Dolores B. Yuvienco OSCAR S. REYES ASTRID S. TUMINEZ REBECCA G. FERNANDO ANTONIO JOSE U. PERIQUET ROMEO L. BERNARDO
PERSONNEL AND COMPENSATION COMMITTEE MEMBERS AUDIT COMMITTEE MEMBERS Chairman Fernando Zobel de Ayala Chairman Xavier P. Loinaz (Independent) Members Romeo L. Bernardo (Independent) Members Octavio V. Espiritu (Independent) Aurelio R. Montinola III Aurelio R. Montinola III Oscar S. Reyes Oscar S. Reyes Vivian Que Azcona Dolores B. Yuvienco
TRUST COMMITTEE MEMBERS RELATED PARTY TRANSACTIONS COMMITTEE MEMBERS Chairman Mercedita S. Nolledo Chairman Octavio V. Espiritu (Independent) Vice Chairman Antonio Jose U. Periquet (Independent) Members Rebecca G. Fernando Members Fernando Zobel de Ayala Oscar S. Reyes Cezar P. Consing Romeo L. Bernardo (Independent) Romeo L. Bernardo (Independent) Rosemarie B. Cruz, Chief Audit Executive Rebecca G. Fernando (Non-voting) Maria Theresa M. Javier, Trust Officer Marita Socorro D. Gayares, Chief Compliance Officer (Non-voting)
RETIREMENT AND PENSION COMMITTEE MEMBERS Chairman Mercedita S. Nolledo DOLORES B. YUVIENCO XAVIER P. LOINAZ VIVIAN QUE AZCONA ARTEMIO V. PANGANIBAN Vice Chairman Cezar P. Consing Members Rebecca G. Fernando Florendo G. Maranan, Head of Board Committees Human Resources Management
116 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 117 Managing Risks
G4-2, G4-14, G4-45, G4-46, G4-47
Currently, five Principal Officers report to the President and CEO on matters relating to specific areas of business. They ensure the development and expansion of the Bank’s client relationships, service quality and innovation in products and services, management of the Bank’s trading business including enterprise asset-liability management, reliability, productivity, and cost-efficiency in the Bank’s operating infrastructure. These Principal Officers are: We take strategic steps to guard against various risks encountered in the normal course of operations and in Joseph A. Gotuaco, Executive Vice President and Head of Enterprise Services; making business decisions. Aware that this is critical to delivering sustainable value for stakeholders and Dennis G. Montecillo, Executive Vice President and Head of Corporate Clients; fulfilling our commitment to all shareholders, we identify all relevant risks, conduct process and system risk Antonio V. Paner, Executive Vice President, Treasurer and Head of Global Markets; assessments and measure (or monitor) via key risk indicators against established risk limits to ensure acceptable returns. Simon R. Paterno, Executive Vice President and Head of Financial Products and Services; and Natividad N. Alejo, President of BPI Family Savings Bank (effective 2015) Our BPI Group Risk and Capital Management First Line of Defense: Risk Owners (includes Our Planning and Performance Management System articulates our strategy from planning to execution. Framework details the process of identifying all business unit-level functions) manage risks by It uses quantifiable metrics to gauge accountability, performance, expenditure, and risk. risks for the Bank and all its subsidiaries. This identifying, assessing and treating risks. Processes,
More details on our Corporate Governance and Risk Management, including relevant policies affecting integrity and fair dealing are discussed in our is further supported by the Group’s robust risk procedures, controls instituted and the monitoring 2014 Annual Report. and capital review processes, as embedded in the thereof ensure effectiveness at the business unit levels. Internal Capital Adequacy Assessment Process (ICAAP). The ICAAP is annually updated in Second Line of Defense: Oversight is undertaken accordance with the existing BSP regulations. by Group risk management functions in support G4-34 BOARD OF DIRECTORS The risk management framework consists of three of the First Line of Defense. They are guided by
CORPORATE components, namely: (1) sound governance; (2) the Bank’s enterprise risk management framework, SECRETARY effective ERM processes and controls; and (3) which may be adjusted to adopt to business goals business-enabling, timely and reliable risk data and or some internal or external factors. Employees
RELATED PARTY AUDIT COMMITTEE OTHER COMMITTEES* information systems. actively engage in risk management processes and TRUST TRANSACTION RISK MANAGEMENT EXECUTIVE COMMITTEE training initiatives. Risk awareness is embedded in our corporate PRESIDENT culture. Every employee is educated and trained Third Line of Defense: Independent Assurance to be responsible for risks and controls in his • The Board Audit Committee, through
ASSET MANAGEMENT RISK MANAGEMENT SECURITY OFFICE COMPLIANCE INTERNAL AUDIT area of authority. The Bank follows a strict code Internal Audit as defined in the Corporate AND TRUST of transparency in reporting to our respective Governance Manual and Audit Committee ACCOUNTING committees up to the Board level, confident Charter; CENTRALIZED that every effort is being done to address issues. • Internal Audit conducts regular independent CREDIT Transparency is combined with integrity where all risk assessments of risk management controls reports and key risk indicators are handled with in place, specifically, timeliness, efficiency CLIENT SEGMENTS FINANCIAL PRODUCTS GLOBAL MARKETS AND SERVICES ENTERPRISE SERVICES accuracy and honesty. We make a thorough review and effectiveness, as those of periodic of empirical data and systems and other internal reporting. Risk management processes RETAIL CORPORATE process improvements when necessary to enhance and controls are reviewed periodically and Deposits Treasury trading Human resources Centralized operations our effectiveness. recommendations for enhancements are made Remittance and Balance sheet Strategic and Shared administrative Customer segments Top corporates and FLs PEZA and Asian MNCs payments and ALM corporate planning services when deemed necessary. BPI Foundation Branches Metro Manila Provincial Corporate products Global market sales Legal services and Sustainability Building Lines of Defense • External Audit makes regular periodic
Field sales Large-medium Filipino-Chinese Information independent assessments of financial controls enterprises Bancassurance International offices technology We have identified the Bank’s three main risks to and processes in conjunction with the Customer relationship Electronic channels BPI Family Savings management Bank be credit risk, market risk, and operational and IT preparation of the Bank’s Financial BPI Capital Statements. Corporation risk. Accordingly, we apply three lines of defense in BPI/MS Insurance, enterprise risk management and internal controls, Board Committees Ayala Plans as follows: BPI Forex Other committees are Personnel and Compensation, Retirement Corporation and Pension, Nominations, and Corporate Governance.
118 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 119 The Board and Executive Management likewise implementation and documentation of BCM, Audit Committee. We maintain compliance monitor the various risks the Bank is exposed to consisting of the following: with the BSP, SEC, Philippine Deposit Insurance through the regular reports and briefings from • Normal Operating Procedures cover Corporation (PDIC) and other regulating bodies the Business Units, Risk Management Office, preventive or pro-active prevention of relevant to the business. The Compliance Office is Compliance, and Internal Audit functions and disruptions thus tasked to oversee the Bank’s implementation external audit. • Manual Recovery Procedures define of enterprise-wide compliance programs and steps to enable normal operations after an stakeholder-related compliance issues such We also have Business Risk Officers who are interruption, with acceptable process as money laundering and Terrorist Financing accountable for managing and coordinating all recovery and turnaround time Prevention Program. The compliance officer is matters of risk specifically operational and IT. • The Procedure for Resolution and ably complemented by a competent Legal BROs cascade and see to the effective application/ Escalation contains guidelines on when Services Division. adoption of the Bank’s Risk Management to escalate or cascade necessary Programs. He is the central contact for all risk- information to whom and how to do so Fourteen (14) Group Compliance Coordinating related concerns for his business area. • Communications Procedures safeguard Officers (GCCOs), assigned in various business timely, effective dissemination of accurate and operational units, lend support to the Ensuring Uninterrupted Service and reliable information to affected Compliance Office. parties/stakeholders Our Group of Companies relies heavily on • System Recovery Procedure are steps to The Bank utilizes a three-layered compliance testing information systems in its day-to-day operations. correct processing errors to resume normal and monitoring process: Business units self-regulate Any perceived disruption to the delivery of operations of automated processes within a on compliance with the corporate governance products or services, however minimal, may affect prescribed turnaround time manual, policies and code of business conduct and overall client satisfaction. The Bank therefore • System Recovery Test Procedure are ethics. The Compliance Office and Internal Audit depends on its established Business Continuity guidelines for testing documented recovery give independent reviews that are elevated to the Management (BCM) processes to resolve problems procedures, helping ensure proper board level Corporate Governance Committee. and address products and services concerns. This execution should the need arise. Employees have a compliance database, ensuring may include operational processes or resources- access to electronically posted information by related issues. BCP manuals are subject to regular reviews and are the Compliance Office. Meetings are regularly updated as needed for relevance and benchmarking conducted with GCCOs on the status and needs Our Business Continuity Management unit to best practices. on compliance. Regular dialogues with regulators manages the Bank’s BCM Program. As part of ensure they are updated on new regulatory the Risk Management Office, they identify and Strengthening Our Compliance Practices developments that may affect bank operations. monitor against possible significant threats to business continuity. A strong and competent Regulatory and legal compliance is intrinsic to BCM unit is critical to our overall enterprise risk companies that operate with high ethical standards management approach. Effective BCM processes and integrity, strong compliance management ensure compliance to information security and risk programs and policies and an excellent management objectives of availability, reliability management team and human resources. and the soonest recovery in cases of internal or external events. Our Compliance Office is charged with nurturing the Bank’s culture of integrity, ethical business Our Business Continuity Plan (BCP) contains practice, fair dealing and effective compliance the necessary information for the proper management. It is directly accountable to the
120 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 121 Category and Aspect Name of Policy/Reference Description Performance G4-HR3, HR4, HR5, HR6, SO5, SO8, PR7, PR8 Feature
HUMAN RIGHTS Non-discrimination/ Part of Employee The Bank does not There was no reported Workplace discrimination Handbook/CBA discriminate on incident of discrimination gender, religion, race, in 2014. color, political stand, or social background. Winning the “House of the Year” Award
Overhauling its risk management structures has Freedom of Association and Company Union The Bank recognizes No aspect of our Collective Bargaining the existence of Company operations prohibits paid off big time for the Bank of the Philippine Union(s). this freedom. Islands (BPI)—it recently gained the Asia Risk Awards 2014 “House of the Year” for Child Labor Employs only persons The Bank strictly No aspect of our the Philippines, the first-ever bestowed on a of legal age enforces non-employment operations has been Philippine bank. of minors. identified as having significant risk for child This year, BPI joins an esteemed roster of global labor. banks and financial institutions such as Hong Kong and Shanghai Banking Corporation Forced or Compulsory Labor Collective Bargaining The Bank is against There were no incidents of Agreement/HR Policies forced/compulsory labor. compulsory labor reported (HSBC, Hong Kong), Development Bank of in 2014. Singapore (DBS, Singapore) and Commerce International Merchant Bankers (CIMB, Malaysia) in receiving their respective “House of SOCIETY the Year” awards from Asia Risk. Accounting fraud and Collective Bargaining The Bank utilizes Unibank There was no reported corruption Agreement/HR Policies Investigation Unit to incidents of accounting investigate employee fraud and/or corruption The award was conferred by Risk.net which is fraud and corruption. in 2014. owned by Incisive Media, a global business media company and one of the world’s leading business-
to-business information providers. It was the first In October 2014, BPI Chief Risk Officer and Senior Vice President International Declarations time in 19 years of giving out awards that the Edgardo O. Madrilejo received the award in behalf of the Bank. The awarding ceremony was held during the gala dinner of the media firm gave a “House of the Year” citation for Asia Risk Congress at the Four Seasons Hotel, Hong Kong. National, regional and local Abides with Philippine and The Bank complies with all The Bank is conformant the Philippines. laws and regulations international laws laws and regulations as a with all applicable matter of policy, business regulations at the local, The Bank spent a year overhauling its risk philosophy and CREDO. regional and national management structures partially in response to Our compliance extends to levels. BPI’s Basel III capital adequacy ratio currently treaties and international the country’s new capital adequacy framework stands at above 15 percent. agreements. introduced by the Bangko Sentral ng Pilipinas at the start of the year. BPI has shifted much PRODUCT RESPONSIBILITY more from a risk control approach to one of “The risk management process Marketing Communications Bank Policies/Legal Bank adheres with privacy There was no incidents of true risk management. Memoranda/Legal laws, copyright laws, code non-compliance related to should be about handling risk so Advisory Bulletins of conduct of advertising this aspect in 2014. BPI’s proactive approach in enterprise and that the company can grow and be financial risk management, which entails a profitable; at the same time Customer Privacy Bank Policies/Legal The Bank strictly No complaints regarding strong top-down risk management culture, Memoranda/Legal implements Bank Secrecy breaches of customer competent risk management leaders, well-defined being transparent with the Board Advisory Bulletins laws, Data Privacy Act and privacy and/or losses risk appetite and metrics, and robust models so that everyone understands the other Consumer Protection of customer data were laws and regulations. recorded in 2014. and systems are the key elements to the Bank’s profile of the company. I am very It has sent officers to capability to face both global and local market comfortable with where we are in-house and external challenges and its thrust to be at the forefront Financial Consumer of ethical, prudent and proactive enterprise risk now.” edgardo o. madrilejo Protection management best practices in the country. Chief Risk Officer
122 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 123 INSURANCE CLAIMS Yolanda Typhoon Yolanda Claims Filed Settled and Billed A Story Revisited 08 November 2013 Number | Amount Number | Amount | % Motor 429 | 104,059,936.16 405 | 101,365,866.21 | 94.4%
Non-motor 314 | 849,730,000.00 120 | 536,390,000.00 | 38.2%
743 525 | | 70.7%
Quick Facts A Quick Glance at Yolanda Numbers Community Initiatives for BPI • BPI Foundation partnered with The Foundation • Unibankers joined the Ayala Group’s • Yolanda made landfall on 8 November 2013 • Affected branches – 5 including BPI-Philam for These Abled Persons Inc. (FTI) for the One Big Ayala Volunteer Night in • 16 million lives were affected (BPLAC) and BPI Globe BanKO development of a livelihood recovery program for helping pack relief goods in various relief • Total deaths: 6,300 • The Bank suffered zero injuries and casualties people with disabilities and other marginalized centers of the Department of Social Welfare • Injuries: 28,626 • All local employees were accounted for community members. The program is also and Development. • Gone missing: 1,785 by the 9th day including outsourced meant to contribute to the rehabilitation and • Displacement: 4.1 million people services employees reconstruction of devastated communities in • In just 17 days, the “10M + 10M” fund • More than 1.1 million houses damaged, • Employee count: 53 employees including Leyte through sustainable enterprises. raising campaign of the Bank raised 490,000 of which were totally destroyed and BPLAC and BPI Globe BanKO over ₧11 million for the victims of super swept away • Bank reopening – 12 November Ormoc, • The Foundation’s Bancas for the Philippines typhoon Yolanda. Matched peso for peso by • In the worst affected areas of Leyte and Samar Baybay; 22 November Tacloban Main Branch program promotes fiberglass technology in BPI, this resulted in a total donation 90% of houses were completely gone and 48% • Actual bank losses to date ₧11.5 million: building fishing boats to help fishermen earn of more than ₧22 million. of primary livelihoods lost ₧7.8M in cost of branch repairs, ₧2.9 million decent incomes again, especially those struck on cost of mutilated/damaged bills and ₧0.8 hard by Typhoon Yolanda and other disasters. • Donations made by the public through the million in spending for relief goods and travel Each banca is 15 feet long and weighs only 30 BPI Foundation amounted to ₧10 million, Sources: USAID Typhoon Haiyan/Yolanda Fact Sheet #22 released 14 April which were then used to fund disaster 2014 and/or NDRRMC Update on Effects of Typhoon Yolanda (Haiyan) expenses of employees and their families kg. Its expected lifespan of 20 years, twice of that issued on 17 April 2014 during relief operations of traditional wooden boats. In June 2014, BPI recovery efforts and construct 2-storey, Foundation and WWF-Philippines turned over 4-classroom school buildings in the 50 fiberglass boats to Leyte fishermen and another devastated areas. 50 to Iloilo fisherfolk.
124 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 125 Our Yolanda Story
Below is an account of the Bank’s experience with the super-typhoon Yolanda, a result of a composite of answers Lesson 1: A Solid Business Continuity voluntarily done. They naturally acted to protect given in a group interview in relation to the Bank’s Business Continuity Management as it was then applied. Management Plan is Key the Bank and what it stands for. The fact that they went beyond normal procedures is significant. Our 2013 Integrated Annual and Sustainability Report contained some of our actions to address the devastation Looking back, our BCM gave us the necessary Their natural compassion for the Bank and of each Yolanda has wrought and how the Bank, as one family, helped communities. As we look anew at lessons learned controls we needed for an effective retrieval and other contributed greatly to the immediacy and from Yolanda, we encounter anew the human side of the story – a story of a Bank and its people. relief operations throughout the Yolanda experience. effectiveness of our BCM. A definite and effective working structure was in place. It enabled us to systematically account for our Included but not limited to our employee people and allowed us to organize and mobilize daily. engagement are accounting for our people and All of our activities, even minor ones, were reported assets; fundraising of money and other necessities for without impediment to discretion for management affected employees and communities; volunteering The day typhoon Yolanda came began just like any cooperative, there were also security concerns to decisions and actions taken. in relief and recovery efforts both in the affected ordinary day in anticipation of a long weekend. address, such as desperate attempts to open ATMs. areas and remotely (e.g. donations packing); Everyone had taken heed of weather bulletins Resources were extremely scarce. Everyone was a Lesson 2: Keeping Physical Infrastructure and taking part in post Yolanda recovery and broadcasted two weeks prior about the incoming target for opportunists. Resilient rehabilitation initiatives. storm. Most had stocked up on food at home and taken other precautions in case the weather turned Among our people, check-ups on one another were Lesson 4: Maintaining Strong Leadership Taking off from our experiences with Typhoon bad enough that they had to stay in. Everyone being done over that weekend to ensure everyone Yolanda, we have fortified the branches which were and Compassion thought they had undergone enough preparations. was safe and accounted for. These were things our deemed to be at high risk. We invested in generator employees never signed up for but done nonetheless sets and placed them on higher floors. For each of Under normal operations, each BPI employee is Then the typhoon came with unexpected storm and voluntarily out of utmost compassion for our our branch areas, the designated evacuation site is aware of how rigorous our policies and procedures surges. Everything changed within 20 minutes. people, compassion for the Bank. exact with clearly identified central points for relief are in running the Bank. Adherence to a budget Along with the massive destruction, chaos reigned. and recovery operations. We also have the necessary is always a must. However, during the Yolanda Resuming Service Immediately supplies in place in case of calamity. calamity, we saw the funding, the instructions and While Business Continuity was not applicable the hands-on approach—all cascading instantly in the immediate aftermath of the storm, BPI’s BPI’s guiding principle of service was at work in While Yolanda was unique, with something of from our top management. Their instructions response had still been swift and decisive. The the hardest of times. Even on the exact day that similar magnitude, the first thing necessary is to let were very clear and direct to make certain that our directives were simple and came from the very top: Yolanda hit, a Tacloban branch closed at 6pm to our employees know where to bunker in and provide people were taken care of. Our Crisis Management account for and extricate our people; ensure they ensure the ATMs were loaded for the long weekend. them enough food to last a certain number of days. Team convened and monitored even as the events have access to food, water, medicine, and sanitation; Our mandate at the Bank includes servicing the Disruption in communications is assumed, so we unfolded. We felt the urgency of the imperatives of secure all the money that the Bank is entrusted community immediately after a calamity. In the keep an employees’ contact database, updating it relief, mobilization and action. with. chaos that ensued after the storm surges, our people regularly at both the BPI Group and Ayala Group made an effort to secure all the money in our 9 levels. Our people are now aware of alternative The Bank’s goals went beyond rescue—it was to Major Erwin L. Rosete was our designated man ATMS and in the cash vaults in Tacloban. After the means of communication when cellular signals fail. locate, retrieve and send our people back. After on the ground for retrieval operations. He was typhoon onslaught and as soon as the signal was The importance of adequate preparation can never everyone was accounted for, recovery became the there on Day 3 and the Philippine Army came up, the ATM at our Romualdez branch was back in be over-emphasized. priority. There are guidelines within our bank policy the following day. Other staff were able to join operation. for assisting staff who are victims of disasters. The Maj. Rosete by the Day 5. Rescue efforts were Lesson 3: Going Beyond Their Duties unique Yolanda situation called for an extraordinary not confined to BPI-Ayala employees. It was a To ensure fair opportunity for all our local clients response level and this was delivered. The definite challenge to find our people and get them to access funds, we lowered the limit on cash Yolanda validated our belief and reality–the main Management authorized cash releases as immediate and their extended families evacuated to Cebu. A withdrawals. Efforts were made to service clients’ strength of our Institution is our people. We employee aid for those severely affected. Interest-free Manila-based employee had a family in Tacloban, needs even for those whose identity cards were witnessed then how our employees needed no housing loans for affected employees were who were also given assistance. While people were washed away or whose signature cards were damaged. further directives and what needed doing was likewise approved.
126 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 127 Appendices
128 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 129 Appendix A: Material Aspects and Indicators Appendix B: Membership in Industry Associations
G4-19, G4-20, G4-21 G4-16
Category/ GRI Aspect Why this is material Material Aspect Description Business Unit Responsible Industry Associations Subcategory Indicator Boundary Product “We believe our first Product and Service G4-PR5 Customer satisfaction survey results Internal Bank of the Philippine Islands ACI Philippines Responsibility responsibility is to our Labeling Association of Bank Compliance Officers Clients. If we understand Association of Certified Fraud Examiners and address our clients’ Marketing G4-PR7 Non-compliance with marketing regulations Internal financial needs, we will Communications Bankers’ Association of the Philippines be trusted with their Customer Privacy G4-PR8 Complaints on customer privacy violation and data losses Internal Banker’s Institute of the Philippines most important financial Chamber of Thrift Banks Financial Services transactions, and we will Product Portfolio FS6 Percentage of the portfolio for business lines by specific Internal Credit Card Association of the Philippines Sector Disclosures build lasting relationships. region, size and by sector Credit Management Association of the Philippines We do well when our FS7 Monetary value of products and services designed to Internal Philippine Business for the Environment clients do well.” deliver a specific social benefit for each business line Rural Bankers’ Association of the Philippines broken down by purpose FS8 Monetary value of products and services designed to Internal deliver a specific environmental benefit for each business Corporate Planning Makati Business Club line broken down by purpose Management Association of the Philippines Money Market Association of the Philippines Labor Practices and “We believe in our Employment G4-LA1 Employee hires and turnover Internal Decent Work responsibility to our Various business clubs in areas People. We seek to hire Training and Education G4-LA9 Training hours for employees by gender and employee Internal the best people for each category Deposits Bank Marketing Association of the Philippines Human Rights job, provide them with Non-discrimination G4-HR3 Discrimination incidents and actions taken Internal the means to perform at a high level and reward Freedom of Association G4-HR4 Violation of freedom of association/collective bargaining Internal Remittance Association of Bank Remittance Officers Inc. them fairly. We value and Collective and actions taken integrity, professionalism Bargaining and loyalty. We promote a Child Labor G4-HR5 Risk and incidents of child labor in operations, suppliers, Internal Asset Management and Trust Fund Managers Association of the Philippines culture of mutual respect, and measures taken Trust Officers Association of the Philippines meritocracy, performance and teamwork. We strive Forced or Compulsory G4-HR6 Risk and incidents of forced or compulsory labor in Internal to be the employer of Labor operations, suppliers, and measures taken BPI/MS Insurance Corporation Insurance Institute of Asia and the Pacific choice among Philippine Junior Insurance Executives Circle financial institutions.” Marine Tuesday Club Economic “We believe in our Economic Performance G4-EC1 Economic value generated and distributed Internal and Marine Underwriters Association of the Philippines responsibility to our external (suppliers, Philippine Association of Surety Underwriters, Inc. Shareholders. We treat government, and Philippine Insurers Club capital as a most valuable local communities) asset, and seek to Philippine Insurers and Reinsurers Association generate superior returns Indirect Economic G4-EC8 Indirect economic impacts Internal and Reinsurers Club of the Philippines while being prudent in Impacts external Society of Underwriters risk-taking, spending and (customers) investment.” Procurement Practices G4-EC9 Spending on local suppliers Internal and external (suppliers) BPI Capital Corporation Financial Executives of the Philippines Society “We believe in our Local Communities G4-SO1 Local communities Internal and Investment House Association of the Philippines responsibility to our external Country. Our prosperity (beneficiaries of is greatly dependent on CSR programs) the well-being of our Foundation Association of Foundations nation. We aim to be Anti-corruption G4-SO5 Confirmed incidents of corruption and actions taken Internal Corporate Network for Disaster Response inclusive and responsible Compliance G4-SO8 Cost of fines and number of sanctions for breaching laws Internal League of Corporate Foundations in nation building. Through and regulations Philippine Council for NGO Certification BPI Foundation, we are committed to the welfare and sustainability of the communities we serve.” Environment “We contribute to Energy G4-EN3 Energy consumption within the organization Internal nation building through investment and/or G4-EN4 Energy consumption outside the organization Internal and funding businesses that external (suppliers) have direct impact to the Water G4-EN8 Water withdrawal by source Internal environment. We expect our clients to value and Emissions G4-EN15 Direct GHG emissions Internal respect the environment G4-EN16 Indirect GHG emissions Internal as we do. Further, in our day-to-day operations, G4-EN17 Other Indirect GHG emissions Internal and we track and implement external (suppliers) measures to become more eco-efficient.” Products and Services G4-EN27 Environmental impact mitigation for products and services Internal and exter- nal (customers)
130 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 131 GRI Content Index GRI Content Index
GENERAL STANDARD DISCLOSURES SPECIFIC STANDARD DISCLOSURES
Section or sub-section, Page/s External Assurance Material Aspects DMA and Indicators - Page (s) Reason for Omission External Assurance
STRATEGY AND ANALYSIS ECONOMIC
G4-1 Message from the Chairman and the President and CEO, 6-9 Yes, 134-135 Economic Performance • G4-DMA – 16 Not applicable Yes, 134-135 • G4-EC1 – 16-17 G4-2 Sustainability Strategy Framework, 12 Yes, 134-135 Indirect Economic Impacts • G4-DMA – 25, 39, 51, 73 Not applicable Yes, 134-135 Managing Risks, 119 • G4-EC8 – 23-81
ORGANIZATIONAL PROFILE Procurement Practices • G4-DMA – 102 Not applicable Yes, 134-135 G4-3 Inside front cover Yes, 134-135 • G4-EC9 – 102
G4-4, G4-5, G4-6 Our Business, 15 Yes, 134-135 ENVIRONMENT
G4-7 BPI is a publicly listed company governed by a Board of Directors. Details of our ownership structure can be found in Yes, 134-135 Energy • G4-DMA – 103 Not applicable Yes, 134-135 page 4 of our 2014 Annual Report. • G4-EN3 – 105-107 • G4-EN4 – 105 G4-8, G4-9 Our Business, 15 Yes, 134-135 Water • G4-DMA –103 Not applicable Yes, 134-135 G4-10 Employee Statistics, 92-93 Yes, 134-135 • G4-EN8 – 106-107
G4-11 Employee Statistics, 94 Yes, 134-135 Emissions • G4-DMA – 103 Not applicable Yes, 134-135 • G4-EN15 – 106-107 G4-12 Supply Chain Management, 104 Yes, 134-135 • G4-EN16 – 106-107 • G4-EN17 – 106-107 G4-13 There have been no significant changes in the Bank’s size, structure, ownership, or its supply chain. Yes, 134-135 Products and Services • G4-DMA – 62, 103 Not applicable Yes, 134-135 G4-14 Managing Risks, 119 Yes, 134-135 • G4-EN27 – 62-69 G4-15 Currently, BPI has no record of external charters, principles, or initiatives that it subscribes to or which it supports. Yes, 134-135 SOCIAL: LABOR PRACTICES AND DECENT WORK G4-16 Membership in Industry Associations, 131 Yes, 134-135 Employment • G4-DMA – 85-86 Not applicable Yes, 134-135 IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES • G4-LA1 – 93-95
G4-17 The information and indicators reported are related to BPI and its business units. Yes, 134-135 Training and Education • G4-DMA – 88 Not applicable Yes, 134-135 • G4-LA9 – 88-89 G4-18 Sustainability Strategy Framework, 12 Yes, 134-135 SOCIAL: HUMAN RIGHTS Defining What’s Material to Us, 18 Non-discrimination • G4-DMA – 120-121 Not applicable Yes, 134-135 G4-19 Sustainability Strategy Framework, 12 Yes, 134-135 • G4-HR3 – 122
Appendix A, 130 Freedom of Association and • G4-DMA – 120-121 Not applicable Yes, 134-135 Collective Bargaining • G4-HR4 – 122 G4-20 Sustainability Strategy Framework, 12 Yes, 134-135 Child Labor • G4-DMA – 120-121 Not applicable Yes, 134-135 Appendix A, 130 Yes, 134-135 • G4-HR5 – 122 G4-21 Sustainability Strategy Framework, 12 Yes, 134-135 Forced or Compulsory Labor • G4-DMA – 120-121 Not applicable Yes, 134-135 Appendix A, 130 Yes, 134-135 • G4-HR6 – 122
G4-22 Previous years' economic figures as well as energy consumption at BPI Head Office were updated. Yes, 134-135 SOCIAL: SOCIETY
G4-23 There were no significant changes. Yes, 134-135 Local Communities • G4-DMA – 96 Not applicable Yes, 134-135 • G4-SO1 – 96-97 STAKEHOLDER ENGAGEMENT Anti-Corruption • G4-DMA – 120-121 Not applicable Yes, 134-135 G4-24 Stakeholder Engagement, 20-21 Yes, 134-135 • G4-SO5 – 122
G4-25 Stakeholder Engagement, 20 Yes, 134-135 Compliance • G4-DMA – 120-121 Not applicable Yes, 134-135 • G4-SO8 – 122 G4-26 Stakeholder Engagement, 20-21 Yes, 134-135 SOCIAL: PRODUCT RESPONSIBILITY G4-27 Stakeholder Engagement, 20-21 Yes, 134-135 Product and Service Labeling • G4-DMA – 111-112 Not applicable Yes, 134-135 REPORT PROFILE • G4-PR5 – 112-113
G4-28, G4-29, G4-30 Scope and Coverage, 10 Yes, 134-135 Marketing Communication • G4-DMA – 120-121 Not applicable Yes, 134-135 G4-31 Contact Information, 11 Yes, 134-135 • G4-PR7 – 122
G4-32 Reporting Standards, 11 Yes, 134-135 Customer Privacy • G4-DMA – 120-121 Not applicable Yes, 134-135 • G4-PR8 – 122 G4-33 Assurance, 10 Yes, 134-135
GOVERNANCE SECTOR DISCLOSURES G4-34 Continuing a Legacy of Leadership Excellence, 114, 118 Yes, 134-135 FINANCIAL SERVICES G4-45, G4-46, G4-47 Managing Risks, 119 Yes, 134-135 Product Portfolio • G4-DMA – 51-53 Yes, 134-135 G4-48 Ms. Fidelina A. Corcuera Yes, 134-135 • FS6 – 52-53 Senior Vice President & Head - BPI Sustainability Office • FS7 – 40, 42-43 Executive Director, BPI Foundation • FS8 – 62-69
ETHICS AND INTEGRITY
G4-56 The BPI Credo, 2-3 Yes, 134-135
Details of our existing mechanisms for seeking advice on ethical and lawful behavior and matters related to Yes, 134-135 G4-57 organizational integrity may be viewed on pages 58 to 59 of our 2014 Annual Report.
132 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 133 Independent Assurance Statement
134 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 135 Acknowledgement
Vladimir S. Adriano Josephine F. Fernandez Jomar O. Mislang Jerwin A. Agarao Diane Faith S. Figueroa Kristofer T. Molina Ramon Noel S. Altamirano Agatha Joy A. Flores Lady Janelle M. Monsanto Jeffrey S. Amoroso Daniel Jerome P. Frago Gelyn F. Mijares Maria Ramona O. Ang Marita Socorro D. Gayares Josenia Jessica D. Nemeño Ma. Gracia S. Aranda Raymond H. Go April Ria M. Ng Uy Gina O. Astilla Anna Christina P. Gomez Mica Rose P. Nopuente Winston C. Austria Katrina Marie Vc. Gonzales Emmanuel Jesus G. Osalvo Luningning L. Avendano Joseph Albert L. Gotuaco Michaelangelo R. Oyson, CFA Brian T. Badilla Marie Eileen M. Hipolito Perlina I. Padilla Eugenia D. Baguioro Jollybee E. Jamias Maria Cristina R. Peñaranda Athena G. Balleza Ivan Angelo E. Javier Ma. Isabel R. Perey Allely M. Barbo Jose Raul E. Jereza IV Manny F. Quiambao Donna Michelle T. Barroga Ricardo T. Jimenez Tricia Marie C. Quiambao Ma. Teresa Lea L. Calalang Rachel C. Juyo Rosemary F. Raymundo Maria Ilizza M. Canlas Edgar A. Lagura Julius R. Respicio Eileen May G. Cariaga Ebony Arianne G. Lautner Benjamin Christian C. Ricalde James Christler B. Cariaga Charlie G. Ledesma (Ret.) Major Erwin L. Rosete Reginaldo Anthony B. Cariaso Steven S. Lim Edelyn B. Sagales Fitzgerald S. Chee Marie Louise D. Liwanag Juan Miguel A. Santiano Ma. Carmela D. Concepcion Maria Consuelo A. Lukban Alberto C. Santos Jr. Mary Anne S. Concepcion Elaine Ruth S. Lumbre Joanne V. Sigua Ma. Perpetua A. Cutiongco Dino S. Macasaet Sarah Jane S. Songalia Rachelle Marie G. Dangin Edgardo O. Madrilejo Sylvia P. Sumagpang Katrina Blanca B. De Castro Andrew Angelo Mahinay Cherish Honey C. Tan Dennis A. delos Reyes Florendo G. Maranan Javie Kristine C. Tatad Jose Augurio N. De Vera, Jr. Lea Angeline A. Maranan Maureen Eve. DA. Tiangson Leah B. del Castillo Ma. Carmina T. Marquez Edelinda R. Tined Perry Alfonso Froilan E. Dacumos Mauren C. Mayorga Valerie Gayle L. Uy Anna Christina U. del Fierro Marjorie Kathereen A. Mendoza Angeli D. Valdivia Jo Ann B. Eala Michael B. Mercado Angelica M. Ylagan Ritchie G. Fariñas Roberto Isabelo P. Mercado Atty. Paul Roderick A. Ysmael
All BPI and BFSB branch officers Philippine Business for the Environment All Business Center, Cash Center, Tink Tank Studio Processing Center, and Provincial Office Heads BANK OF THE PHILIPPINE ISLANDS 6768 Ayala Avenue Makati City 0720 Philippines www.bpi.com.ph
136 BANK OF THE PHILIPPINE ISLANDS 2014 SUSTAINABILITY REPORT 137