BDO Unibank 2019 Annual Report B

Table of Contents
06 Our Purpose
Corporate Mission
Corporate Vision
Core Values
Corporate Profile
08 Message from the Chairperson
11 Q&A with the President and
Chief Executive Officer
14 2019 at a Glance
16 Financial Highlights
18 Market Overview
20 Our Strategy
21 Risk Management
24 Performance Review and Report
on Operations
32 Corporate Governance
67 Corporate Social Responsibility
76 Financial Statements
Statement of Management’s
Responsibility for Financial
Statements
Statements of Financial Position
Statements of Income
79 Products and Services
80 Awards and Recognition
83 BDO Group of Companies
86 Organizational Structure
87 Board and Management Directory
92 Corporate Information
Our Purpose
Corporate Mission
To be the preferred bank in every market we serve.
Corporate Vision
To be the leading Philippine bank and financial services company
that empowers customers to achieve their goals and aspirations,
combining our entrepreneurial spirit, international perspective,
and intense customer focus to deliver a personalized banking
experience that is easy, straightforward, and convenient, while taking
pride in building long-term relationships and finding better ways to
deliver offerings of the highest standard.
Core Values
Commitment to Customers. We are committed to delivering
products and services that surpass customer expectations in value
and every aspect of customer service, while remaining prudent and
trustworthy stewards of their wealth.
Commitment to a Dynamic and Efficient Organization. We are

committed to creating an organization that is flexible, responds
to change, and encourages innovation and creativity; we are
committed to the process of continuous improvement in everything
we do.
Commitment to Employees. We are committed to our employees’

growth and development and we will nurture them in an
environment where excellence, integrity, teamwork, professionalism,
and performance are valued above all else.
Commitment to Shareholders. We are committed to providing our

shareholders with superior returns over the long-term.
Corporate Profile
BDO is a full-service universal bank in the Philippines. It provides
a complete array of industry-leading products and services
including Lending (corporate and consumer), Deposit-taking,
Foreign Exchange, Brokering, Trust and Investments, Credit Cards,
Corporate Cash Management and Remittances in the Philippines.
Through its local subsidiaries, the Bank offers Investment Banking,
Private Banking, Leasing and Finance, Rural Banking, Life Insurance,
Insurance Brokerage and Stock Brokerage services.
BDO’s institutional strengths and value-added products and

services hold the key to its successful business relationships with
customers. On the front line, its branches remain at the forefront of
setting high standards as a sales and service-oriented, customer-
focused force. BDO has the largest distribution network with over
1,400 operating branches and more than 4,400 ATMs nationwide.
Through selective acquisitions and organic growth, BDO has

positioned itself for increased balance sheet strength and
continuing expansion into new markets. As of December 31, 2019,
BDO is the country’s largest bank in terms of total resources,
customer loans, deposits, assets under management and capital, as
well as branch and ATM network nationwide.
BDO is a member of the SM Group, one of the country’s largest and

most successful conglomerates with businesses spanning retail,
mall operations, property development (residential, commercial,
hotels and resorts), and financial services. Although part of a
conglomerate, BDO’s day-to-day operations are handled by a team
of professional managers and bank officers. Further, the Bank has
one of the industry’s strongest Board of Directors, composed of
professionals with extensive experience in various fields that include
banking and finance, accounting, law, and business.
A MESSAGE FROM THE
CHAIRPERSON
“Whether in better times or uncertain times,

BDO will be there to meet the financial service
needs of our clients, and also do our part in
maintaining economic stability in the country.”
09
A Message from the Chairperson

Dear Fellow Shareholders,
2019 was a good year for BDO. As we (6) Decent work and economic growth; (7)
committed to reach our targets, the dedication Industry, innovation, and infrastructure; (8)
and focus of our management had pushed us Sustainable cities and communities; (9)
to achieve beyond expectations. Responsible consumption and production; and
(10) Climate action.
BDO management successfully delivered
positive results in our business lines through While we hoped to sustain what we have
a relentless focus on outstanding customer achieved in 2019, COVID-19 disrupted
service, digital transformation, and on the global economy, and the Philippines
the constant alignment of BDO to new experienced a nationwide lockdown in mid-
opportunities that arise in the different sectors March. It was a remarkable team effort to keep
of our economy. We ended the year strong, BDO branches open and our ATMs accessible,
with improved operating profitability. As we and to ensure everyone’s safety as we operate.
commit ourselves to maximize opportunities, In spite of the challenges still present, we
we also balance our efforts with prudent commit to provide the best service we can to
risk management and maintaining customer our clients during these times.
loyalty and satisfaction.
In closing, I would like to give BDO
Being the leading bank in assets, customer management much deserved thanks for the
loans, deposits, and assets under hard work they put in, and to our board of
management, we at BDO continue to directors who have constantly guided the bank
contribute to nation-building by serving on regulatory compliance and organizational
well the growing financial needs of many governance. On behalf of the entire BDO
communities, and by playing a significant and group, I most of all thank our clients and our
responsible part in the financial ecosystem. shareholders: Thank you for your continuing
trust in us, and it is because of your support
The bank has also undertaken several that BDO continues to be the leading bank in
initiatives in the area of environmental the Philippines.
sustainability. As we ourselves prioritize
sustainability within BDO, we also extend our Yours truly,
support of sustainable practices to clients
who invest in the following Sustainable
Development Goals (SDGs): (1) Good health
and well-being; (2) Quality education;
(3) Gender equality; (4) Clean water and Teresita T. Sy
sanitation; (5) Affordable and clean energy; Chairperson
11
Q&A with the President and Chief Executive Officer

“2019 was a good year for BDO; our strong business
franchise carried us through with good growth across all
business lines, as we worked in the best interests of our
customers, employees, communities, and shareholders.”
Q&A WITH THE

PRESIDENT AND CHIEF
EXECUTIVE OFFICER
Mr. Nestor V. Tan discusses how he saw
BDO Unibank’s performance in 2019 and its
prospects for 2020 and beyond.
Q: What is your overall evaluation sacrificing asset quality. Second, we needed

of how the BDO group performed to invest judiciously in new initiatives that
are necessary to deepen further our market
during 2019?
coverage and expand our market share.
2019 was a good year for us; our strong
business franchise carried us through with Q: And what initiatives is
good growth across all business lines, as we BDO undertaking?
worked in the best interests of our customers,
We are expanding our coverage of the
employees, communities, and shareholders.
underserved and unbanked markets. In
We were also able to extend our reach into
addition, we are implementing our digital
more geographic areas allowing us to cover a
strategy which includes upgrading our
bigger market. Profit-wise, we are particularly
operating platform to the next generation to
pleased with our bottom line: our net income
cater to the needs of more tech-savvy users.
rose by 35% to P44.2 billion on the strong
performance of our core income sources. Q: How does BDO focus its efforts
Q: What was management focused on when it comes to monitoring and
in particular at the outset of 2019? expanding the loan portfolio?
Our overall objective was twofold. First, Our loan portfolio is categorized into three
we needed to sustain the good quality major segments: Large corporate loans,
growth appropriate for our franchise without representing about 47% of the total; middle
12
market loans, including SMEs, about 31%; and We rebranded our rural bank subsidiary,
consumer loans, which make up the remaining the primary vehicle for reaching micro-SME
22%. The middle market and consumer borrowers, as BDO Network Bank. It was a
segments are where the sustainable growth is, move to capitalize on the name recognition of
especially in the provincial areas. This is where the Unibank.
our efforts are focused.
Q: Can you give an example of
The underserved segment is relatively small product market expansion?
at the moment but we expect it to be a
meaningful contributor in the future. In the area of wealth management, for
example, we have expanded our foreign
Q: And what has been the outcome in currency investment options and increased
that area? the number of licensed investment
practitioners. We segmented our servicing
We are very pleased with the growth in our effort to cater to the high net worth (HNW),
middle market and consumer portfolios. Our the mass affluent, and the digitally-savvy
middle market segment grew their business emerging affluent in different ways with
by 10%, while consumer loans increased by different value propositions. Further, we
15%, capitalizing on opportunities in high reorganized BDO Securities into a full-service
growth areas. Activity in those segments is brokerage firm to provide clients with an
reflective of how the real economy is doing, expanded product suite to include non-
especially in the areas outside of Metro equity securities.
Manila. The regions outside Metro Manila have
consistently grown faster than the Capital Q: What challenges did the bank face
over the last five years, indicating more in executing its strategies?
local activity and broader-based growth.
Large corporate loans are growing as well, Like the rest of the economy, we were
but at a slower pace given the measured affected by the delay in approval of the
implementation of public and private government’s budget at the beginning of
sector-initiated infrastructure projects. the year. The resulting uncertainty was felt
throughout, and the effect was a slowdown
Q: What other initiatives are you in the rate of economic activity. BDO
undertaking to improve your market consequently experienced a slowdown in the
coverage and expand market share? growth of loans.
We have doubled our micro-SME coverage As well, given the rapid evolution of the
areas. We increased coverage of new markets industry with regards to technology and
with the deployment of 127 branches and changing customer preferences, the challenge
offices nationwide. To complement our was how to stay nimble and flexible to cope
branch and ATM network, we also expanded with these technological changes. That is
our touchpoints with Cash Agad and why we continue to invest in technology and
digital capabilities to provide our clients analytics to make us more agile, smarter
with more venues for cash fulfillment and in understanding our clients and more
banking transactions. responsive to market changes.
13

Q: What are recent IT-related initiatives? Q: Why has the stock outperformed
the market to such an extent?
We are now halfway through our NextGen
IT project which involves the deployment of The stock market can be fickle and irrational
modern architecture platforms. The expected sometimes. Having said that though, I believe
benefits from this project will come in the form that investors recognize the strength of
of faster turnaround time, greater accessibility the Bank’s business franchise, extensive
across channels and enhanced security. distribution network and balance sheet
We are on the tail-end of implementing our as future drivers of earnings strength
cybersecurity program encompassing not and sustainability.
only technology but people and processes as
well. In addition to our IT initiatives, we are Q: How do you see the economy going
embarking on business process reengineering forward into 2020?
to automate and streamline operations across
the bank which should improve efficiency, When I began this letter early in the year,
enrich customer experience and reduce costs there were good reasons to be optimistic
over the long-term. and bullish on the Philippine economy.
Based on the country’s solid macroeconomic
Q: How about your initiatives fundamentals, upbeat government spending,
on sustainability? firmer household consumption, and
supportive monetary policy, we were expecting
Our initiatives on sustainability reflect the the strong recovery that began in the third
changes we have made in the way we do quarter of 2019 to carry over into 2020.
business. Sustainability principles are now
part of the decision-making, product creation While the potential of our nation remains
and relationship expansion processes. strong, the outlook for the year has been
clouded by the significant human and
To cite a few of our initiatives: we have been economic fallout caused by the coronavirus
active participants in sustainable energy and and other factors including the impact of the
green financing; we continue to increase Taal Volcano eruption. Beyond the human
coverage of the underserved and unbanked costs caused by the coronavirus, the global
sectors and contribute to efforts to raise economy has stalled and financial markets
financial inclusion; and we leverage our are down as investors try to anticipate the full
resources toward the relief, rehabilitation, and impact of this crisis.
recovery of disaster-stricken communities,
allowing affected residents to rebuild Q: How is BDO prepared to support its
their lives. customers through this environment?
Q: And how did BDO’s stock price BDO’s organization is designed to withstand
perform for its investors in 2019? challenging periods such as this. We have
been able to operate with a skeletal force
Very well. Our share price closed at P158.0 in without any reduction in service level and
2019, representing a Total Shareholder Return quality. We have created redundant teams to
(TSR) of 22.9% over one year, outperforming the ensure continuity of service in the event of
Philippine Stock Exchange Index’s (Phisix) 6.5%. infection. And, we have instituted safety and
health measures to make sure we protect our
employees and work environment as well.
2019 at a Glance
Strongest
Bank in the
Philippines
Over P3 trillion LARGEST
DISTRIBUTION
NETWORK
Total Resources
P44.2 billion 127 new

Net Income
branches
and banking offices
#1 1,436 total
Total Resources branches
Customer Loans and banking offices,
including foreign branches in
Deposits Singapore and Hong Kong
Capital
4,466 ATMs
Assets Under
Management
Awards and STRONGEST BANK

IN THE PHILIPPINES
BEST BANK IN THE
PHILIPPINES
Recognition The Asian Banker Euromoney Awards for
Strongest Banks By Excellence 2019
Balance Sheet List 2019
FinanceAsia 2019
Country Awards
The Asset Triple A

Country Awards 2019
Beneficiaries of Financial
Education Programs
24 million students
2.3 million OFWs
ADVOCACIES IN ACTION
Through various programs and projects,

900,000 civil
BDO Foundation served Filipinos in need
servants
69,082 families
in calamity-stricken areas
800,000 teachers
and non-teaching personnel in
453,776 residents public schools
with access to improved rural health units
140,000 soldiers
60 homes built and civilian personnel of the armed forces
for Typhoon Yolanda survivors
BDO CAPITAL, INDUSTRY CHAMPION BEST INVESTOR RELATIONS

TOP ARRANGER OF THE YEAR COMPANY (PHILIPPINES)
INVESTORS’ CHOICE Asia Corporate Corporate Governance
FOR PRIMARY ISSUES Excellence & Asia’s 9th Asian
(CORPORATE BONDS –
Sustainability (ACES) Excellence Award 2019
PHILIPPINES)
Awards 2019
The Asset Triple A
Benchmark Research
Awards 2019
Financial Highlights
Resources Gross Customer Loans

(in billion Php) (in billion Php)
3,500 2,500
5-Year CAGR 5-Year CAGR
11.3% 3,189 15.2%
2,208
2,800 2,000
3,022
2,020
2,668
1,755
2,100 1,500
2,325
1,482
2,031
1,279
1,400 1,000
700 500
0 0
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019
Deposit Liabilities Capital Funds

(in billion Php) (in billion Php)
2,500 400
5-Year CAGR 5-Year CAGR
2,485
10.7% 15.6%
2,420
371
2,000 320
2,121
328
1,905
298
1,500 240
1,664
218
200
1,000 160
500 80
0 0
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019
Net Income*
(in billion Php)
45
5-Year CAGR
44.2
36
14.1% NET INCOME
P44.2 billion
32.7
27
28.1
26.2
24.9
2019
18
9 P32.7 billion
2018
0
2015 2016 2017 2018 2019
* attributable to shareholders of the parent bank

17
Financial Highlights
Financial & Operating Highlights
CONSOLIDATED PARENT BANK
2019 2018 Change 2019 2018 Change
BALANCE SHEET (in billion Php)
Resources 3,188.9 3,022.2 6% 3,063.1 2,891.8 6%
Trading and Investment Securities 435.9 385.2 13% 345.3 304.3 13%
Liquid Assets 886.6 919.6 -4% 789.3 825.8 -4%
Gross Customer Loans 2,208.1 2,020.1 9% 2,157.9 1,966.5 10%
Deposits 2,485.2 2,420.0 3% 2,438.7 2,362.3 3%
Equity1/ 370.6 328.1 13% 369.2 327.6 13%
INCOME STATEMENT (in billion Php)
Net Interest Income 119.9 98.3 22% 114.5 93.9 22%
Non-Interest Income 60.6 49.7 22% 43.1 35.8 20%
Gross Operating Income 180.5 148.0 22% 157.6 129.7 22%
Operating Expenses 115.2 98.0 17% 94.3 81.8 15%
Pre-provision Profit 65.4 49.9 31% 63.3 47.9 32%
Allowance for Credit Losses 6.2 6.3 -2% 5.7 5.7 0%
Net Profit2/ 44.2 32.7 35% 44.2 32.7 35%
FINANCIAL PERFORMANCE INDICATORS
Profitability
Return on Average Common Equity 12.8% 10.7% 12.8% 10.7%
Return on Average Equity 12.6% 10.6% 12.7% 10.6%
Return on Average Assets 1.4% 1.1% 1.5% 1.2%
Margins and Liquidity
Net Interest Margin 4.2% 3.6% 4.1% 3.7%
Gross Customer Loans to Deposit Ratio 88.8% 83.5% 88.5% 83.2%
Liquid Assets to Total Assets 27.8% 30.4% 25.8% 28.6%
Liquidity Coverage Ratio3/ 108.4% - 109.2% -
Net Stable Funding Ratio3/ 116.7% - 117.4% -
Cost Efficiency
Cost to Income Ratio 63.8% 66.3% 59.8% 63.1%
Cost to Average Assets Ratio 3.7% 3.4% 3.2% 3.0%
Asset Quality
NPL to Gross Customer Loans 1.2% 1.0% 1.1% 0.9%
NPL Cover4/ 164.7% 183.1% 174.2% 198.1%
Capital and Leverage
CET 1 Ratio5/ 12.7% 12.1% 12.2% 11.7%
Tier 1 Ratio5/ 12.9% 12.4% 12.4% 11.9%
Capital Adequacy Ratio5/ 14.2% 13.8% 13.7% 13.3%
Countercyclical Buffer6/ 0.0% 0.0%
Basel III Leverage Ratio 10.0% 9.3% 9.6% 8.9%
Assets to Equity 8.6x 9.2x 8.3x 8.8x
DISTRIBUTION NETWORK AND MANPOWER
Branches 1,436 1,309 10% 1,173 1,126 4%
ATMs 4,466 4,325 3% 4,225 4,097 3%
Employees 38,510 36,387 6% 32,631 31,370 4%
SHAREHOLDER INFORMATION
Market Value
Share Price (in Php) 158.00 130.80 21%
Market Capitalization (in billion Php) 692.26 572.13 21%
Valuation
Earnings per Share (in Php) 10.02 7.40 35%
Book Value per Share (in Php) 83.03 73.67 13%
Price-Earnings Ratio 15.8x 17.7x
Price to Book Value 1.9x 1.8x
Dividends
Cash Dividends Paid to Common Shareholders 5.3 5.2
(in billion Php)
Cash Dividends per Common Share (in Php) 1.20 1.20
Dividend Payout Ratio7/ 11.9% 15.9%
Dividend Yield8/ 0.8% 0.9%
1/
Total capital accounts, inclusive of minority interest and preferred shares
2/
Net Income attributable to shareholders of the parent bank
3/
Public disclosure required by BSP beginning 2019
4/
Per BSP Circular 1011
5/
Based on audited financial statements
6/
Currently set at 0% by the BSP per Circular 1024 Section 1
7/
Cash dividends paid during the year divided by net profit for the year
8/
Cash dividends per common share paid during the year divided by average daily closing price for the year
Market Overview
Economic Environment
The Philippine economy grew by 5.9% in 2019, among the highest in the region, as growth
recovered in 2H 2019. The year began slowly, following high inflation and interest rates in late
2018 that spilled over to 1H 2019. This was further aggravated by the delayed passage of the
government’s national budget and the midterm election ban on public spending that dampened
economic activity in 1H 2019. The ramp-up in government spending and the healthy recovery in
private consumption on the back of decelerating inflation and easing monetary policies allowed
the economy to regain its growth momentum in 2H 2019.
Government spending (comprising 12% of GDP) surged in 4Q 2019 to cap the full year with a
10.5% expansion, serving as the major growth engine on the demand side. Resilient consumer
spending (up 5.8% and accounts for 68% of GDP), benefitting from easing consumer prices in
2H 2019, also contributed to the country’s positive performance. Growth in capital formation
(investments) was flat, while net trade posted a 5% drop year-on-year amid escalating US-China
trade tensions.
Meanwhile, the services sector (58% of GDP), which rose by 7.1% on the back of retail trade
(up 8.0%) and financial services (up 10.4%), as well as the industry sector (up 5.4%, fueled by the
7.7% rise in construction) led growth on the supply side.
The inflation rate eased to 2.5% in 2019, within the BSP’s 2%-4% inflation target and lower
than the 5.2% average recorded in 2018. From a high of 4.4% in January 2019, the inflation rate
decelerated, hitting a low of 0.8% in October 2019 on effective measures to address supply-side
disruptions, stabilizing oil prices as well as base effects.
With inflation well-managed and to support economic activity, the BSP unwound the tightening
measures in 2018 with a series of policy rate cuts in May, August, and September 2019, bringing
the key policy rate down to 4.0% from a ten-year high of 4.75%. As well, the BSP implemented
on a staggered basis 400 bps cuts in banks’ deposit reserve requirements (RR) over the year
to bring the RR to 14% by end 2019. Meanwhile, the peso rallied towards year-end to close
at P50.74/USD from P52.72/USD in 2018, on the back of the improvement in the Balance of
Payments (BOP) to a surplus underpinned by Overseas Filipino Worker (OFW) remittances,
business process outsourcing (BPO) income and tourism revenues.
19
Market Overview
Regulatory Environment
The BSP continued the implementation of Basel III reforms during the year as part of its
macro-prudential measures to better monitor risks and ensure financial stability. These include:
the Net Stable Funding Ratio (NSFR) requiring banks to fund their assets and activities with
long-term and more stable funding sources; the Liquidity Coverage Ratio (LCR) mandating banks
to hold sufficient level of high quality liquid assets to allow them to withstand a 30 day-liquidity
stress scenario; and re-evaluation of Domestic Systemically Important Banks (D-SIB) guidelines
by raising the weights of size and interconnectedness instead of equal weights previously for
all four (4) categories (besides size and interconnectedness, the other two are substitutability
and complexity).
Outlook for 2020

The global economy is seen to post its steepest recession this year. The coronavirus (COVID-19)
pandemic and containment measures (e.g., lockdowns) by countries, combined with the
lingering uncertainty on COVID-19’s duration, depth and scale, have disrupted economic
activity, weighing heavily on several sectors that include production/supply chains, trade, travel,
transport and tourism.
After more than two (2) decades of sustained economic expansion, the Philippines is
expected to post a contraction in GDP growth as the economy absorbs the adverse effects of
COVID-19 and ECQ. Among others, these include: disrupted business activities and increased
unemployment; reduced Overseas Filipino Workers (OFW) remittances resulting from the
repatriation of OFWs; and a slump in tourism revenues due to mobility and travel restrictions.
Amid this backdrop, the government’s P1.7 trillion stimulus and relief measures to provide
emergency support to vulnerable groups, expand medical and health resources and resume
infrastructure projects should set the stage for an economic rebound in 2021.
Our Strategy
BDO’s overall strategy focuses on building a strong business franchise to achieve diversity and
sustainability of earnings over the long-term.
THE BANK’S STRATEGY IS FOCUSED ON THREE (3) CORE AREAS, NAMELY:
▪▪ Building a diversified and sustainable earnings stream on the back of strong businesses, wide
market coverage and a strong client acquisition and service culture;
▪▪ Creating operating leverage by building an operating platform that supports growth and
scalability, complemented by digital enablers; and
▪▪ Prudently managing its balance sheet by conservatively provisioning for risk assets, managing
the mix of current and long-term funding sources and ensuring sufficient capital to
support growth.
1 Build a diversified
and sustainable
earnings stream
2 Create operating
leverage
3 Prudently manage
the balance sheet
Risk Management
With its culture of managing risk prudently within its capacity Risk Management
and capabilities, the BDO Unibank Group will pursue its Principles
strategy and business plans to provide consistent quality
service to its customers, to achieve its desired long-term
target returns to its shareholders, and satisfy or abide by
the needs of its other stakeholders, including its depositors
SOUND LIQUIDITY
and regulators.
MANAGEMENT
Overall Risk Management Culture

and Philosophy
The Bank believes that, as there are opportunities, there are
associated risks. The objective is not to avoid risks totally, SUSTAINABLE
but to adequately and consistently evaluate, manage, control EARNINGS
and monitor the risks, and ensure that the Bank is duly GENERATION
compensated for all risks taken. Good risk management
involves making informed and rational decisions about the
level of risks the institution wants to take in the pursuit of its
objectives, but with consideration to return commensurate
with the risk-taking activity. ADEQUATE
CAPITAL
Risk Appetite and Strategy RATIOS
The BDO Unibank Group’s goal is to remain a strong bank

that is resilient to possible adverse events. Hence, the
Bank ensures:
▪▪ A strong financial position by maintaining adequate

capital ratios,
▪▪ Sound management of liquidity, and
▪▪ Ability to generate sustainable earnings commensurate with
the risks taken.
The Bank ensures that credit, market, interest rate, and liquidity
risks are within Board-approved operating limits. Operational,
legal, regulatory, and reputational risks are invariably managed
by the development of both a strong “control culture” and an
effective internal control system that constantly monitors and
updates operational policies and procedures with respect to the
Bank’s activities and transactions.
22
Risk Management
Bank-Wide Risk Governance Structure Risk Oversight

Framework
Risk management at BDO begins at the highest level of
the organization. At the helm of the risk management
infrastructure is the Board of Directors (the Board), which Board of
is responsible for establishing and maintaining a sound risk Directors
management system. The Board assumes oversight over
the entire risk management process and has the ultimate Risk
responsibility for all risks taken. It regularly reviews and Management
approves the institution’s tolerance for risks, as well as its Committee
business strategy and risk philosophy.
Risk
The Board has constituted the Risk Management Committee Management
Group
as the Board-level committee responsible for the
development and oversight of the risk management program.
Considering the importance of appropriately addressing credit Areas of Oversight
risk, the Board has also constituted the Executive Committee. Credit Risk
The Executive Committee is responsible for approving Market Risk
Interest Rate Risk
credit-specific transactions, while the Risk Management
Liquidity Risk
Committee is responsible for approving credit portfolio risk- Operational Risk (including
related policies and limits, as well as market, liquidity, and IT Risk and Information
operational risk policies and limits. Security Risk)
The Assets and Liabilities Committee, which operates within

the Bank’s overall risk management system, is responsible
for managing the statements of financial position, including
liquidity, interest rate and foreign exchange related risks. In
addition, this committee formulates investment and financial
policies by determining the asset allocation and funding mix
strategies that are likely to yield the targeted financial results.
The Bank operates an enterprise-wide risk management

framework to address the risks it faces in its banking
activities. The Risk Management Group, which reports to the
Risk Management Committee, is mandated to adequately
and consistently evaluate, manage, control, and monitor the
overall risk profile of the Bank’s activities across the different
risk areas (i.e., credit, market, liquidity, and operational
risks including IT risk and information security risk) to
optimize the risk-reward balance and maximize return on
capital, in line with the Bank’s risk management mission.
The Risk Management Group also has the responsibility of
recommending, to the appropriate body, risk policies across
the full range of risks to which the Bank is exposed.
23
Risk Management
Risk Management Process
The evaluation, analysis, and control performed by the Risk
Function, in conjunction with the Risk Takers, constitute the
risk management process. The risk management process is
applied at three levels: the transaction level, the business
unit level, and the portfolio level. This framework ensures that
risks are properly identified, quantified, and analyzed in the
light of its potential effect on the Bank’s business. The goal of
the risk management process is to ensure rigorous adherence
to the Bank’s standards for precision in risk measurement
and reporting and to make possible, in-depth analysis of the
deployment of capital and the returns that are delivered to
the shareholders.
Performance Review and
Report on Operations
2019 Performance 2019 RECORD-

BREAKING
ACHIEVEMENTS
Our Financial Performance
BDO Unibank, Inc. reported a net income of P44.2 billion in 2019 from 44.2
P
P32.7 billion in 2018. This represents an increase of 35% year-on-year,
attributable to the strong performance from core banking activities.
The results topped the guidance of P38.5 billion, and translate to a
billion
Net Income
12.8% Return on Common Equity (ROCE) from 10.7% the previous year.
Net interest income rose to P119.9 billion, with Net Interest Margin (NIM)
improving on continued Current Account/Savings Account Deposits
(CASA) growth and improving loan mix in favor of consumer and middle
Over
market customers. Customer loans went up by 9% to P2.2 trillion,
while total deposits increased by 3% to P2.5 trillion, bolstered by
P3 trillion
Total Assets
the 8% increase in low-cost CASA deposits that comprised 73% of
total deposits.
Non-interest income reached P60.6 billion, led by fee-based income

with P35.3 billion and insurance premiums with P14.8 billion. Trading
2.2
P
and forex gains settled at P5.7 billion. Overall, gross operating income
rose to P180.5 billion. trillion
Gross Customer
Meanwhile, operating expenses amounted to P115.2 billion, in line with Loans
our continuing business and network expansion, as well as higher
volume-related expenses (specifically, taxes and licenses and policy
1,434
reserves at BDO Life). In 2019, BDO opened 127 new domestic branches
and banking offices nationwide, bringing the consolidated branch
network to 1,434. Total Operating
Branches
BDO maintained its conservative credit and provisioning policies, Nationwide
setting aside P6.2 billion in provisions, even as gross non-performing
loan (NPL) ratio was steady at 1.2% and NPL cover remained high at
164.7%.
Total capital base went up to P370.6 billion, with Capital Adequacy

Ratio (CAR) and Common Equity Tier 1 (CET1) ratio at 14.2% and 12.7%,
370.6
P
respectively, both comfortably above regulatory levels.
billion
Capital Base
25
Performance Review and Report on Operations

Beyond the financials, BDO received numerous recognitions in 2019,
most notably being recognized as one of the Top Five Financial
Institutions by the Institute of Corporate Directors, and cited for the
second year in a row as The Strongest Bank in the Philippines by The
Asian Banker. BDO also received The Bank of the Year Award from The
Banker, Euromoney Award for Excellence, the FinanceAsia Country
Award for Best Bank, the Asiamoney Award for Best Domestic Bank,
and the Global Finance Best Bank Award as Investors’ Choice for
Primary Issues (Corporate Bonds – Philippines).
Looking Ahead
BDO’s robust business franchise, strong balance sheet, and culture of
resilience will allow the Bank to rise above the challenging environment
and put it in a solid position once the economy bounces back from the
COVID-19 health crisis.
INSTITUTIONAL Report on Operations

BANKING GROUP
Business Lending
8% High interest rates in the first half of 2019, spilling over from the
Year-on-Year
Loan Growth BSP’s rate hikes in late 2018, coupled with the delayed passage of the
national budget and construction ban during the mid-term elections,
weighed on GDP growth and demand for loans. Consequently, the
Institutional Banking Group (IBG) posted slower loan growth in the
first semester.
By the fourth quarter, IBG saw a recovery in commercial loan bookings

due to a series of BSP rate cuts and a rebound in economic activity,
allowing the Group to post an 8% year-on-year growth by end-2019.
Key drivers were the corporate and middle-market segments which
grew by 7% and 10%, respectively.
To support ongoing geographic expansion, IBG increased its personnel,

both in Metro Manila and provincial areas, in order to balance the
account responsibilities of relationship managers. Teams were also
expanded in the Visayas and Mindanao areas to reach more clients. IBG
also ensured that teams are co-located with support units and BDO
branches to provide faster and more efficient service to clients.
26
A promising area for expansion is cross-border and offshore lending.

In 2019, IBG formed a new dedicated team which successfully booked
cross-border loans out of Hong Kong and Singapore to support BDO
clients’ overseas projects, especially within Southeast Asia.
As IBG looks forward to 2020 and beyond, the Group will leverage
its branch footprint and expertise in the middle-market segment, as
well as continue to expand the client base in provincial areas. On the
corporate side, IBG will leverage on its experience and knowledge in
project financing, to tap opportunities coming from infrastructure,
tourism and the manufacturing sectors.
BDO Leasing and Finance (BDOLF) faced a challenging year in 2019,

which saw a lower net income of P46.6 million from P330 million in
2018. BDOLF suffered from margin compression as its short-term
liabilities adjusted faster to higher interest rates (which prevailed in
the first half of 2019) vis-à-vis its earning assets, e.g., lease receivables
that carry fixed interest rates for three to five years (customary for
lease transactions). Increased provisioning likewise put pressure on
the bottom line. Nevertheless, BDOLF showed better numbers in the
second half of the year due to effective measures to restore margins,
aided by declining interest rates.
Consumer Lending
High interest rates and slower construction activity in early 2019
weighed on credit growth and tempered demand for mortgages and
auto loans. Consumer loan growth, however, picked up in the second
half with better consumer confidence and affordability as inflation
decelerated and interest rates declined.
By the end of 2019, the Consumer Lending Group (CLG) grew its loan CONSUMER
portfolio by 15% and maintained its market share, as it effectively LENDING GROUP
managed opportunities in high-growth provincial areas while leveraging
on the Bank’s extensive branch network and tie-ups with property
developers and auto dealers. Further, CLG was rebranded as Consumer
15%
Portfolio Growth
Banking Group (CBG) to better reflect the Group’s product offerings
to include not just consumer loans but also payment products,
among others.
CBG reorganized provincial business units for business expansion and

more efficient operations. The Group also intensified efforts to reach
unbanked markets by forging tie-ups with local agents through its
Cash Agad initiative, thereby allowing clients to make cash withdrawals
using their BDO or any other debit card at any nearby partner agent in
their community.
27

For 2020, CBG’s priorities are to continue growing its consumer
portfolio, cover more markets and strengthen business partnerships
particularly in the provincial areas. To boost digital banking, the Group
will continue to enhance the internet and mobile banking platforms,
streamline account opening and operational processes, and grow
e-commerce merchants and e-wallet payments.
BRANCH BANKING Branch Banking

GROUP
BDO’s branch network continued to grow in 2019, with 127 new
73% domestic branches and banking offices opened nationwide, bringing

the consolidated domestic branch network to 1,434, still the largest in
CASA Ratio the country. Despite the challenge posed by the availability of more
attractive investment instruments, deposits sustained its growth on
127 the back of the 8% year-on-year increase in low-cost CASA deposits.

This resulted in the Bank posting a CASA ratio of 73%, among the
New Branches and highest in the industry, and generating the lowest funding cost among
Banking Offices its peers.
Opened
BDO will continue to open branches in provincial areas where growth
1,434 potential is highest, recognizing customers’ preference for a welcoming

physical space and a personal, face-to-face interaction. Extended
Operating Branches banking hours in all branches, with some branches open on weekends,
Nationwide combined with customer-centric service, are key factors that draw
potential customers to the Bank.
4,466 The Bank continues to make banking as quick and convenient as

ATMs possible, whether online, through its more than 4,400 ATMs, or in any of
its branches. Branch forms have been simplified and branch processes
improved for easier onboarding of new customers and faster service
delivery. Branch personnel regularly undergo comprehensive training
on customer service with the BDO core values as anchor, as well as
marketing and operations, product knowledge and banking regulations.
Microfinance
BDO NETWORK
BANK BDO Network Bank, Inc. (BDONB) bounced back after a difficult 2018.
BDONB’s total loans increased by 24% year-on-year, following the
24% resumption of salary loans to government employees since mid-2018

and the continued rollout of its micro, small and medium enterprise
Year-on-Year Total (MSME) lending program to more locations nationwide, aimed at
Loans Growth saturating core markets and expanding into new ones. Meanwhile,
CASA deposits increased by 13% with the increase in BDONB’s network
13% to 263 branches and offices, in line with its expansion in underserved
communities across the country.
CASA Deposit
Growth
28
For 2020, BDONB will further expand its network to be complemented

by grassroots marketing to further strengthen BDONB’s market
presence, deepen market penetration, and promote community
engagement. To cite, the acquisition of the banking business of the
Rural Bank of Pandi, Inc. promotes community banking and is seen
to accelerate BDONB’s expansion into the fast-growing Central
Luzon region.
Treasury TREASURY
The Treasury Group posted good growth in 2019, adopting an

opportunistic stance amid the high interest rate environment in early P35
2019 by adding to the investment portfolio at attractive rates. The
Group locked in high yields as funding costs went down with falling
billion
Issuance in Fixed
inflation and interest rate cuts in the second half of 2019, resulting in
Rate Senior Notes
higher net interest margins for the Peso and US Dollar portfolios.
The Group likewise supported the Bank’s efforts at diversifying funding

sources and business expansion by accessing the capital markets, P14.8
including the issuance of P35 billion in Fixed Rate Senior Notes,
recognized as the largest single issuance of Peso bonds by a Philippine
billion
Issuance in Long-
bank at that time, as well as P14.8 billion in Long-Term Negotiable
Term Negotiable
Certificates of Deposit (LTNCDs).
Certificates of
Moving ahead, the Treasury Group will continue to invest selectively to Deposit (LTNCDs)
build up its accrual portfolio, and continue to tap longer-term funding
sources to address the Bank’s funding requirements. The Group will
likewise sustain marketing efforts in Metro Manila and regional areas,
as well as in Hong Kong and Singapore.
Investment Banking BDO CAPITAL
BDO’s investment banking subsidiary, BDO Capital & Investment Participated in

Corporation (BDO Capital), led a number of high-profile transactions
and participated in 13 out of 19 capital markets deals offered to the
public in 2019, drawing on its strong deal origination capabilities and
13 of 19
public capital
ability to execute sophisticated deals with speed and precision. As well, markets deals
BDO Capital leveraged on its Parent Bank’s distribution capabilities,
robust balance sheet, its full suite of products and services and
prudent risk management to make it the premier choice for clients
seeking access to debt and capital markets.
Among the notable deals and transactions led by BDO Capital are
the syndicated term loan facility for Bloomberry Resorts and Hotel,
Inc. and Sureste Properties and the PSE listing of Fruitas Holdings,
Inc. and Kepwealth Property Philippines, Inc. IPOs. BDO Capital also
had a lead role in the debt financing for various solar and wind
power projects owned and operated by the Vena Energy Group and
29

the Solar Philippines Group, bond issuances of the country’s biggest
conglomerates (San Miguel, Ayala and SM Groups), including the
offshore USD-denominated green bond issuance by AC Energy, and in
the preferred shares issues of Petron, Arthaland and Ayala Corp.
Earlier this year, BDO Capital created a separate M&A team to focus on
financial advisory and M&A advisory services, particularly for mid-tier
clients to prepare them for entry into the capital markets. Additionally,
BDO Capital will leverage on its strong institutional relationships to
maximize deal opportunities.
Wealth Management and Advisory

BDO’s wealth management initiatives are targeted to provide a full
suite of tailored products and services across customer segments,
directed at high-net-worth (HNW) to ultra-high-net-worth (UHNW)
individuals through BDO Private Bank (BDOPB), the mass affluent
through BDO Trust and Investments Group (TIG), and at the emerging
affluent, who are mostly younger, digital-savvy millennials through
online platform BDO Nomura Securities.
BDO PRIVATE BANK 2019 was another successful year for BDOPB, as its net income
increased to P878 million from P301 million in 2018, on favorable capital
P878 market conditions following the BSP’s monetary easing and low inflation
in the second half of 2019. The balance sheet was trimmed to reduce
million
dependence on high cost time deposits as a source of funds. To better
focus on its clients’ needs, BDOPB also created a Wealth Management
Net Income Group with more seasoned advisors, and a Corporate Services Group, to
help existing and prospective clients with family office operations.
For this year, BDOPB will continue to target HNW and UHNW markets
as it leverages on its open architecture to deliver bespoke, customized,
and best-in-class investment and wealth solutions.
TRUST AND The Trust & Investments Group (TIG) performed well in 2019 with
INVESTMENTS Assets under Management (AUM) expanding by 15% to reach
GROUP P979 billion, the largest in the industry and equivalent to 25% market
share. This feat was achieved with initiatives to simplify and strengthen
P979 client engagement and portfolio diversification. Returns on investment
funds also improved, with most funds outperforming their benchmarks
billion and ranking in the top quartile compared to their peers.
Assets under For 2020, TIG will further broaden its investment products, pursue
Management automation and create multiple client touchpoints, while streamlining
current processes to raise operational efficiency and enhance
customer experience.
30
BDO Nomura continued to build its customer base, exceeding the BDO NOMURA
300,000-customer mark in 2019 after just three years of operations,
as it continued to make online trading simpler, fast and convenient for
retail investors. Notably, the BDO Nomura platform, with its straight- 300,000
through account opening process, enables a new client to open his customers
first account and invest in five easy steps within five minutes. This
market-leading customer interface was recognized as the Online
Securities Platform of the Year – Philippines by Asian Banking & Finance
at the 2019 Retail Banking Awards.
Payments and Information Services

BDO’s Transaction Banking Group (TBG), comprising Remittance, TRANSACTION
Corporate Cash Management and Business Online Banking, turned BANKING GROUP
in a positive performance in 2019, as it increased the number of
Cash Management clients by 35%, and expanded new deals volume
by 38%. Remittance volume went up by 5% in terms of transaction
35%
Increase in number
amounts, and 7% by number of transactions, allowing TBG to retain a of clients
commanding 46% share of the market.
In 2019, Cash Management Services (CMS) was reorganized to create

more focus on its target corporate segments, allowing CMS to offer
38%
Increase in New
a more individualized approach in serving their customers and Deals Volume
understanding their requirements. Meanwhile, TBG maintained strong
5%
tie-ups with global remittance partners which contributed to TBG’s
performance in terms of transaction volume and growth.
Growth in
In 2020, TBG will continue to execute a four-pronged strategy that Remittance
involves refining the organizational structure for functional and market Volumes
coverage; driving innovation across products and channels; targeting
investments for cost-efficient and highly stable operating platforms;
and maximizing revenue pools and improving sales productivity.
Insurance BDO INSURE
BDO Insurance Brokers, Inc. (BDO Insure) responded aggressively to

the challenging environment in 2019 by leveraging on its portfolio size 12%
and business relationships with accredited insurers, continuously Increase in
developing new and relevant products, and implementing process Commission
efficiencies. New product packages not only addressed the Income
evolving needs of individuals and business owners, but also helped
counteract the upward pressure in premiums and downward trend in
commissions. BDO Insure also intensified renewal efforts particularly in
CBG and BBG.
31

As a result BDO Insure registered a 12% increase in commissions, as
well as sustained a high overall renewal rate for mortgage accounts,
while maintaining a quick turnaround time for claims, the ultimate test
of a broker’s ability to serve clients.
Looking ahead to 2020, BDO Insure will aggressively pursue cross-

selling opportunities with the bank, implement a new core system
to realize further process efficiencies and to better the customer
experience by way of electronic policies and online renewals and
payments, and launch the BDO Insure e-commerce site to generate a
new revenue stream.
BDO LIFE
BDO Life Assurance Co. Inc. (BDO Life) sustained its growth
Over 20% momentum in 2019 on the continued increase in premiums as well

as higher investment income due to better capital market conditions.
Sustained Premium BDO Life leveraged on the Parent Bank’s growing branch network to
Growth deploy more financial advisors, resulting in sustained premium growth
of over 20%. As a result, BDO Life jumped two notches to lead the
market in terms of traditional protection, while rising to 7th spot in
terms of total premiums.
For 2020, BDO Life intends to further tap the customer base of the
Parent Bank through optimized Financial Advisor (FA) branch coverage.
As well, digitalization initiatives will be sustained to drive productivity
and scale up operations through improved back office processes to
efficiently serve its customers.
Corporate Governance
Corporate governance in BDO is about

effective oversight, strict compliance
with regulations, and sustainable value
creation to promote the best interest of its
various stakeholders.
BDO Unibank, Inc. affirms its deep commitment to a high standard

of corporate governance practice firmly anchored on the principles
of accountability, fairness, integrity, transparency and performance
consistently applied throughout the institution. BDO’s good market
reputation has been built on the solid foundation of an ethical
corporate culture and responsible business conduct, underpinned by a
well-structured and effective system of governance.
BDO has continued to comply, where appropriate, with the SEC

Code of Corporate Governance for Publicly-Listed Companies and
provisions of BSP Circular 969 on Enhanced Corporate Governance
Guidelines for BSP-Supervised Financial Institutions in its Corporate
Governance Manual. It has also continued to follow, where appropriate,
the international best practices of corporate governance issued by
globally recognized standards-setting bodies such as the Organization
for Economic Cooperation and Development (OECD) and the ASEAN
Corporate Governance Scorecard (ACGS) which serve as essential
points of reference.
This report describes the highlights of our corporate governance

practices throughout the financial year ended December 31, 2019.
Governance Structure Board Snapshot 33
Board of Directors DIRECTOR DIVERSITY
Responsibility for good governance lies with the Board. It 2 Females
is responsible for providing effective leadership and overall
direction to foster the long-term success of the Bank. 2 International
It oversees the business affairs of the Bank, reviews the
strategic plans and performance targets, financial plans and
budgets, key operational initiatives, capital expenditures,
acquisitions and divestments, annual and interim financial DIRECTOR AGE
statements, and corporate governance practices. It oversees
management performance, the enterprise risk management, 1 50-59
internal control systems, financial reporting and compliance,
related party transactions, continuing director education, 4 60-69
and succession plans for the Board and CEO. It considers
sustainability issues related to the environment and social
6 70+
factors as part of its sustainable banking practices.
The Board is composed of 11 members and aided by

3 advisors. The members of the Board are all professionals
with expertise in banking, accounting and finance, law, SKILLS, EXPERIENCE &
merchandise marketing, strategy formulation, bank BACKGROUND
regulations, information technology, sustainability, and risk 7 Bankers
management. It is led by a Non-Executive Chairperson
with 6 Independent Directors, 2 Non-Executive Directors,
and 2 Executive Directors who are the Vice Chairman and 2 Lawyers
the President & CEO. Independent Directors comprise the
majority (54.50%) members of the Board, thus exceeding the 2 Entrepreneurs
requirement of the Securities and Exchange Commission
(SEC) and the Bangko Sentral ng Pilipinas (BSP) as well
as meeting global best practice. Non-Executive Directors
including Independent Directors comprise 82% of the Board, 2019 BOARD MEETINGS
more than the requirement of the BSP of at least majority
No. of Total
of the Board. This provides independent and objective Meetings No. of %
judgment on significant corporate matters and ensures Directors Attended Meetings Rating
Teresita T. Sy 14 15 93.33%
that key issues and strategies are objectively reviewed,
Jesus A. Jacinto, Jr. 15 15 100%
constructively challenged, thoroughly discussed and
Nestor V. Tan 15 15 100%
rigorously examined. The Board Advisors are considered George T. Barcelon 8 9 88.89%
as integral part of the Board whose influence are akin to Christopher A. Bell-Knight 13 15 86.67%
a director. Their opinions and recommendations are taken Jose F. Buenaventura 13 15 86.67%
into consideration by the Board members. The presence Jones M. Castro, Jr. 15 15 100%
of a female Board advisor provides an independent view Vicente S. Pérez, Jr. 9 9 100%
of the Bank and complements the two (2) female non- Dioscoro I. Ramos 15 15 100%
executive directors. Josefina N. Tan 14 15 93.33%

Gilberto C. Teodoro, Jr. 15 15 100%
The Board is responsible for the screening of new directors Antonio C. Pacis 2 6 33.33%
(until April 22, 2019)
through the Nominations Committee. It leads the process
Jimmy T. Tang 5 6 83.33%
of identifying and evaluating the nominees for directors. It (until April 22, 2019)
evaluates the balance, skills, knowledge and experience
of the existing Board and the requirements of the Bank.
The result of the evaluation determines the role and
key attributes an incoming director should have. The
Nominations Committee receives recommendations for
potential candidates and uses, to the extent possible,
external search firms or external databases in selecting the pool of STRONG INDEPENDENT
34 candidates for the new members of the Board. The Nominations OVERSIGHT
Committee recommends the most suitable candidate to the Board for Independent directors
appointment or election as director.
chair eight (8) of nine

For reelection of incumbent directors, the Nominations Committee (9) board committees,
also considers the results of the most-recent self-assessments of the namely Risk Management,
Board and peer evaluation, attendance record in meetings, participation Board Audit, Corporate
in Board activities and overall contribution to the functioning of Governance, Related
the Board. Party Transactions, IT
Steering, Nomination,
In evaluating the suitability of an individual board member and Compensation, and Trust.
promoting diversity in the composition of the Board, the Nominations
Committee takes into account the relevant qualifications of every
candidate nominated for election such as, among others, physical/
DIRECTOR INDEPENDENCE
mental fitness, relevant educational and professional background,
personal track record, experience/training, commitment to 2 Executive Directors
contribute, willingness to serve and interest to remain engaged and
involved without regard to race, gender, ethnic origin, religion, age or
6 Independent Directors
sexual orientation.
The Board is also responsible for approving the selection and

3 Non-Executive Directors
appointment of a competent executive management led by the
President/CEO including the heads of units who exercise control
functions i.e. Chief Compliance Officer, Chief Risk Officer, and Chief
Internal Auditor. Fit and proper standards are applied in the selection
of key officers and utmost consideration is given to their integrity,
technical expertise, and banking industry experience.
Each year, the composition of the Board and board committees is

reviewed to ensure appropriate balance of skills, competencies, and
experience of its members, and ensure the alignment with the new
regulations. Independent directors chair eight (8) of nine (9) board
committees, namely Risk Management, Board Audit, Corporate
Governance, Related Party Transactions, IT Steering, Nomination,
Compensation, and Trust.
Considering the changes done, complexity and scope of the Bank’s

business, the Board believes that its current size and composition
provide sufficient diversity among its directors that fosters critical
discussion and promotes balanced decision-making by the Board. It
views diversity at the Board level which includes differences in skills,
experience, gender, sexual orientation or preference, age, education,
race, business and other related experience as an essential element in
maintaining an effective board for strong corporate governance.
During the year, the Board reviewed and approved the Bank’s budget
and business targets, quarterly declaration of dividends and the
release of the 2018 audited financial statements within 60 days from
year end. Its oversight functions include the review of operational and
financial performance of senior management and work of the various
committees in accordance with their mandates.
In 2019, the Board approved the amendments to the Bank’s Articles of

Incorporation and By-Laws to conform with the Revised Corporation
Code of the Philippines and the Bank’s current operations and
structure as well as enhance corporate governance. Noteworthy is the
increase in the quorum requirement for meetings of the Board from a 35
simple majority to two-thirds (2/3). Every decision made during such

meetings shall also require two-thirds (2/3) of such quorum in order
to pass a valid corporate act. The revised articles and by-laws shall be
endorsed to the Stockholders for approval and ratification.
Improving Board Effectiveness

Board Performance
A yearly self-assessment is conducted focusing on the performance
of the Board, directors, Committees and senior management, through
the Corporate Governance Committee, using an approved set of
questionnaires. The performance evaluation process begins with
sending out customized Board Evaluation Questionnaires to each
director and advisor. They are required to complete the questionnaire
explaining the rationale of their response, the results of which are
tabulated and consolidated. The Corporate Governance Officer
prepares the overall report and presents this to the Corporate
Governance Committee for discussion and endorsement to the
Board, including the recommended actions and focus areas to
improve effectiveness.
For 2019, the Bank commissioned PricewaterhouseCoopers (PwC) to

facilitate the Board Effectiveness Evaluation in compliance with the
SEC Code of Corporate Governance, and to further align its governance
framework with the principles of the said Code and global best
practices. Part of the engagement of PwC is to facilitate a self and peer
evaluation process on the Board, Board Committees, and individual
directors. The results thereof are validated through focused interviews
with individual directors.
Continuing Education for Directors

The continuing education program for directors is an ongoing process
to ensure the enhancement of their skills and knowledge. Every
year, all directors and key officers are given updates and briefings,
and are required to attend a corporate governance seminar on
appropriate topics to ensure that they are continuously informed of the
developments in the business and regulatory environments, including
emerging opportunities and risks in the banking industry. All directors
of BDO Unibank complied with the annual corporate governance
training requirement of four (4) hours for 2019. Ten (10) directors of
BDO Unibank attended the in-house corporate governance seminar
last 24 July 2019 in Makati City. It concentrated on cybersecurity
in the Philippines and blockchain technology/cryptocurrencies, to
update them on emerging risks as banks move to the era of digital
banking. One (1) director attended an external corporate governance
training, which focused on boardroom realities, fighting red tape, and
governance advocacies.
36
Succession Planning
Succession planning for the Board and senior management is an
important part of the governance process. The Corporate Governance
Committee reviews the succession framework and leadership

development plans for senior management, which are subsequently
approved by the Board. As part of the periodic review, the succession
framework is updated and training programs are conducted
accordingly. It has adopted the policy on the Term Limit of Independent
Directors of 9 consecutive years of service as a way to refresh the
Board membership progressively and in an orderly manner.
Remuneration
Our Remuneration policy is geared towards attracting, retaining and
motivating employees and members of the Board. The remuneration
framework for senior management includes fixed pay, bonuses and
the Employee Stock Option Plan (ESOP) as a long term incentive
program. A claw back mechanism is in place, where the benefits
and rights accruing from the ESOP can be revoked or forfeited, if
the eligible employee is terminated from service for cause or in the
event of imposition of an administrative or disciplinary sanction or
penalty against the eligible employee at any time during and after the
vesting period prior to exercise. It is linked to corporate and individual
performance, based on an appraisal of senior management. The five
(5) most highly compensated officers are the President & CEO, and
four (4) Senior Executive Vice Presidents. All qualified employees
may be entitled to an annual merit increase in salary, based on their
performance for the immediately preceding year. This has a long-term
and compounding effect to the fixed pay, which serves as basis for
their retirement benefit. Non-Executive Directors (NEDs) receive per
diem for attending board and committee meetings. In addition, the
Bank grants director fees other than per diem in accordance with law
to ensure that the remuneration is commensurate with the effort,
time spent and responsibilities of NEDs. There is no distinction on the
director’s fee for a committee chairman or member.
Dividends
The Bank recognizes the importance of providing a stable and
sustainable dividend stream consistent with its commitment to
shareholders. The Bank has been paying a regular cash dividend of
P0.30 per share per quarter, or an annual equivalent of P1.20 per share
and will endeavor to do so while maintaining financial flexibility. The
payment of dividends entails prior board approval of the amount,
record and payment dates as recommended by Management based
on the BSP, PSE, and SEC rules on declaration of cash dividends.
Upon Board approval, necessary disclosures are made in compliance
with regulatory requirements. Upon disclosure of a cash dividend
declaration, a trading blackout on BDO shares is imposed upon BDO
directors and Officers. Dividends are paid within 30 days from date
of declaration. The full dividend policy statement is published in the
corporate website.
Related Party Transactions 37
The Bank has established policies and procedures on related party
transactions (RPTs) in accordance with BSP and SEC regulations.
These include definition of related parties, coverage of RPT policy,
guidelines in ensuring arm’s-length terms, identification and prevention
of management potential or actual conflicts of interest, adoption
of materiality thresholds, internal limits for individual and aggregate
exposures, whistle-blowing mechanisms, and restitution of losses
and other remedies for abusive RPTs. The RPT Committee reviews
and endorses to the Board for final approval all material RPTs. The
Related Party Transactions policy applies to BDO Unibank, Inc. and its
subsidiaries and affiliates, as applicable, to ensure that every related
party transaction is conducted in a manner that will protect the Bank
from any potential conflict of interest. The policy also covers the
proper review, approval, ratification and disclosure of transactions
between the Bank and any of its related parties in compliance with
legal and regulatory requirements. The policy also requires that
any member of the RPT Committee who has a potential interest in
any related party transaction shall abstain from the discussion and
endorsement of the related transaction. Likewise, any member of
the Board who has interest in the transaction must abstain from the
deliberation and approval of such related party transaction. Related
party transactions, whose value may exceed 10% of the Bank’s total
assets, require review of an external independent party to evaluate
the fairness of its terms and conditions and approval of 2/3 vote of
the Board, with at least a majority of the independent directors voting
affirmatively. The full version of the Related Party Transactions Policy
is published in our corporate website at www.bdo.com.ph/corporate
governance/company policies.
Chairperson of the Board

The Chairperson is primarily responsible for leading the Board and
ensuring its effectiveness. She provides leadership to the Board, fosters
constructive relationships between directors, promotes an open
environment for critical discussions and constructive debate on key
issues and strategic matters, and ensures that the Board of Directors
exercises strong oversight over the Bank’s business and performance
of senior management. She takes a lead role in ensuring that the Board
provides effective governance of the Bank and continues to operate
at a very high standard of independence with the full support of
the directors.
38
BDO Conglomerate Structure
BDO Unibank, Inc. Group Map
As of December 31, 2019
SY FAMILY
Felicidad Sy, Teresita Sy, Elizabeth Sy, Henry Sy Jr., Hans Sy, Herbert Sy, Harley Sy
SM INVESTMENTS CORPORATION
BDO UNIBANK, INC.

45% 1/
RETAIL
BDO Life Assurance BDO Private
Company, Inc. 2/ Bank, Inc. 2/ SM Retail
BDO-97.0%, Averon Holdings, 100% 77% 1/
BDO Capital-3.0% Corporation 2/
100% BDO Network SM Stores
Bank, Inc. 2/
84.87% SM Supermarket
BDO Capital & BDO Securities
BDO Remit (UK) Ltd. 2/
Investment Corporation 2/
100% BDO Nomura SM Hypermarket
Corporation 2/ 100%
99.8760% Securities, Inc. 2/
51% Savemore
BDO Remit BDO Remit (Ireland)
International Designated Activity BDO Insurance
Holdings B.V. 2/ Company 2/ Brokers, Inc. 3/
BDO Leasing and 96.32% 100% 100%
Finance, Inc. 2/
BDO-87.43%, BDO Remit Equimark-NFC BANKING
BDO Capital-1.11% BDO Rental, Inc. 2/
(Spain) S.A. Development Corp. 3/
100%
99.99% 2/ 60% China Banking
Corporation
23% 1/
BDO Strategic Armstrong SM Keppel
CBN Greece S.A. 2/
Holdings Inc. 2/ Securities, Inc. 2/
Land, Inc. 3/
99.92% (b)
100% 80% 50%
BDO Remit Northpine

BDO Remit (Italia) S.p.A. 2/ Land, Inc. 3/ PROPERTY
(USA), Inc. 2/ 100% (a) 20%
100% SM Prime
BDO Finance Holdings, Inc.
Corporation 2/ Taal Land, Inc 50% 1/
100% 33.33%. 3/
BDO Remit
(Canada) Ltd. 2/ Malls
100% BDO Remit
Unicorn First Residential
Limited 2/
Properties, Inc.
(100%)
35% 3/ (c) Commercial
BDO Remit
(Japan) Ltd. 2/
100% Hotels & Conventions
BDO Remit NLEX Corporation 3/
(Macau) Ltd. 2/ 11.70%
100%
BDORO Europe Ltd. 3/
100%
1/ SMIC Group’s effective ownership as of (a) Dissolved - SMIC’s Subsidiaries/Affiliates

year-end (includes direct & indirect ownership) (b) Under liquidation - Stockholder of BDO
2/ Financial entities (c) For dissolution - Subsidiary
3/ Non-Financial entities - Affiliate
- Other Related Party
Major Stockholders 39
As of December 31, 2019, the following are known to BDO Unibank, Inc. (BDO) to be the direct or
indirect beneficial owners of more than 5% of BDO Unibank’s voting securities:
Title of Class Name Citizenship Percentage
Common and Preferred SM Investments Corp. Filipino 39.02%*
Common PCD Nominee Corp. (Non-Filipino) Foreign 26.26%
Common and Preferred Sybase Equity Investments Corporation Filipino 12.90%*
Common PCD Nominee Corp. (Filipino) Filipino 11.69%**
Common Multi-Realty Development Corporation Filipino 5.95%*

*
Inclusive of PCD-lodged shares
**
Exclusive of PCD-lodged shares of SM Investments Corporation, Multi-Realty Development Corporation and Sybase
Equity Investments Corporation
Every stockholder is entitled to one (1) vote for each share of stock outstanding in his name on
the books of BDO Unibank, unless the law provides otherwise. Cumulative voting shall be used
in the election of the members of the Board of Directors.
Security Ownership of Directors

As of December 31, 2019, the following are known to BDO to be the record and/or beneficial
owners of BDO voting securities:
Total No. of
Direct (D) and Percent to
Indirect (I) Shares Total
Position/Type No. of Years as of December 31, Outstanding
Name of Director of Directorship as Director 2019 Shares
Teresita T. Sy Chairperson/ 1st term: 28 394,947 (D) 0.0081%
Non-Executive Director 2nd term: 12
Jesus A. Jacinto, Jr. Vice Chairman/ 23 502 (D) 0.0000%
Executive Director
Nestor V. Tan President & CEO/ 21 11,661,794 (D) 0.2382%
Executive Director
George T. Barcelon Independent Director 0.67 1,001 (D) 0.0000%
Christopher A. Bell-Knight Non-Executive Director 1st term: 5 123 (D) 0.0000%
2nd term: 6
Jose F. Buenaventura Independent Director 6 1 (D) 0.0000%
Jones M. Castro, Jr. Lead Independent 7 1 (D) 0.0000%
Director
Vicente S. Pérez, Jr. Independent Director 0.67 5,000 (D) 0.0001%
Dioscoro I. Ramos Independent Director 4 203,800 (D) 0.0042%
Josefina N. Tan Non-Executive Director 1st term: 4 596,458 (D) 0.0122%
2nd term: 12
Gilberto C. Teodoro, Jr. Independent Director 5 1 (D) 0.0000%
40
Board of Directors
Teresita T. Sy has been a member of the Board of Directors
of BDO Unibank, Inc. (BDO) since 1977, and currently serves
as Chairperson of the Board. Concurrently, she serves as
the Chairperson and/or director of various subsidiaries
and affiliates of BDO: BDO Private Bank, Inc., BDO Leasing
& Finance, Inc., BDO Finance Corporation, BDO Capital &
Investment Corporation, BDO Foundation, Inc., and BDO Life
Assurance Company, Inc. Ms. Sy also serves as Advisor to
the Board of BDO Network Bank, Inc.
Ms. Sy is the Vice Chairperson of SM Investments

Corporation and Adviser to the Board of SM Prime Holdings,
Inc. She also sits as Chairperson of the Board of SM Retail,
Inc. A graduate of Assumption College with a degree
in Bachelor of Arts and Science in Commerce major in
Teresita T. Sy Management, she brings to the board her diverse expertise
Chairperson in banking and finance, retail merchandising, mall and real
estate development.
Non-Executive Director
Filipino, 69 years old
Jesus A. Jacinto, Jr. was elected to the Board of Directors of

BDO Unibank, Inc. on May 25, 1996, and has since been Vice
Chairman of the Board. He is concurrently the Chairman
and President of BDO Insurance Brokers, Inc. He also heads
Jaces Corp. as Chairman and President and Janil Realty,
Inc. and JAJ Holdings as President. He was formerly a
Director and Executive Vice President of CityTrust Banking
Corporation; Director of CityTrust Investments Philippines
and CityTrust Finance Corporation; and Vice President and
Managing Partner of Citibank N.A. He holds a bachelor’s
degree in Business Administration from Fordham University
in New York City and an MBA in International Business from
Columbia University, New York City.
Jesus A.
Jacinto, Jr.
Vice Chairman
Executive Director
41
Nestor V. Tan is the President and CEO of BDO Unibank, Inc.
He was elected to the Board of Directors on June 27, 1998.
He concurrently holds the Chairmanship of the following
BDO Unibank Subsidiaries: BDO Strategic Holdings, Inc.
and BDO Network Bank, Inc. He also concurrently holds
vice chairmanships and/or directorships in the following
subsidiaries of BDO Unibank, Inc.: BDO Leasing and
Finance, Inc., BDO Finance Corporation, BDO Capital &
Investment Corporation, BDO Insurance Brokers, Inc., BDO
Life Assurance Company, Inc., BDO Private Bank, Inc., BDO
Remit (USA), Inc., and SM Keppel Land, Inc. He is also a
Trustee of BDO Foundation, Inc. and Chairman of the De La
Salle University Board of Trustees. He is also the Chairman
of Bancnet, the operator of the electronic payment system,
InstaPay, and the ATM switching utility for Philippine banks.
Nestor V. Tan He previously served as President and Director of the
President & Chief Bankers Association of the Philippines, in addition to being
Executive Officer the previous Chairman and Director of Philippine Dealing
Executive Director System Holdings Corporation.
Filipino, 61 years old Prior to joining BDO Unibank, Mr. Tan was Chief Operating
Officer of the Financial Institutions Services Group of
BZW, the investment banking subsidiary of the Barclays
Group. His banking career spans nearly four decades
and includes posts at global financial institutions, among
them Mellon Bank (now BNY Mellon) in Pittsburgh, PA;
Bankers Trust Company (now Deutsche Bank) in New York,
NY; and the Barclays Group in New York and London. He
holds a bachelor’s degree in Commerce from De La Salle
University and an MBA from the Wharton School, University
of Pennsylvania.
42
George T. Barcelon was elected Independent Director of

BDO Unibank, Inc. on April 22, 2019. Mr. Barcelon is currently
the Chairman of the Philippine Chamber of Commerce
and Industry (PCCI). He is the visionary behind Integrated
Computer Systems, Inc. (ICS), one of the Top 1000
companies based in the Philippines, dedicated to providing
effectual IT Solutions for small to large-scale businesses
and institutions. For 40 years, ICS has provided its
customers with technological expertise and quality services.
As the president of a company with 400 employees
whose success depends on uncompromising leadership,
imagination, and careful quality control, Mr. Barcelon seeks
to promote the values of Integrity, Commitment, and Service
Quality, the cornerstones upon which ICS was built. He is
also a member of the Rotary Club of Makati, Philippines;
George T. and a board member of the Cardinal Medical Charities
Barcelon Foundation, Inc. in San Juan City, Philippines. Mr. Barcelon
graduated cum laude from De La Salle University, Manila
Independent Director
and received a Bachelor’s Degree in Chemical Engineering.
Christopher A. Bell-Knight was elected to the Board of

Directors of BDO Unibank, Inc. on July 27, 2013. Until his
election as director, he had been acting as Adviser to the
Board of BDO Unibank for more than two years. He had
also previously served as Director of BDO Unibank from
May 2005 until September 2010. He was an Independent
Director of Dumaguete City Development Bank of the
Philippines from March 2007 to March 2013, and currently
serves as an Advisor to the Board. He was formerly a
Director of Solidbank Corporation and Vice President and
Country Head of The Bank of Nova Scotia. Mr. Bell-Knight
has had over 40 years of banking experience in England,
Canada, and Asia, 35 of which were spent in credit and
marketing. He is an Associate of the Chartered Institute of
Bankers – British; an Associate of the Institute of Canadian
Christopher A. Bankers; and a Fellow of the Institute of Corporate Directors.
Bell-Knight He studied at Frome Grammar School in Somerset, England,
and attended universities both in England and Canada for
Non-Executive Director
his Associate qualifications in Banking.
Canadian, 75 years old
43
Jose F. Buenaventura was elected to the Board of Directors
of BDO Unibank, Inc. on April 19, 2013. Since 1976, he has
been a Senior Partner at Romulo Mabanta Buenaventura
Sayoc & de los Angeles Law Offices. He is President
and Director of Consolidated Coconut Corporation,
Gladtobehome Inc., Glimpse of Negros Holdings, Inc., and
Kahigayonan Corp.; and Director and Corporate Secretary
of 2B3C Foundation, Inc., and Peter Paul Philippines
Corporation. He sits on the Board of the following
companies: BDO Securities Corporation (Independent
Director), BDO Finance Corporation (Independent Director),
Eximious Holdings, Inc., Cebu Air, Inc., GROW, Inc., GROW
Holdings, Inc., Hicap Properties Corporation, Himap
Properties Corporation, La Concha Land Investment
Corporation, Philippine First Insurance Co., Inc., Philplans
Jose F. First, Inc., Techzone Philippines, Inc., Total Consolidated
Buenaventura Asset Management, Inc., Turner Entertainment Manila, Inc.,
Phosephene Holdings, Inc., and Clinquant Holdings, Inc.
Atty. Buenaventura holds Bachelor of Arts and Bachelor
of Laws degrees from Ateneo de Manila University, and a
Master of Laws from Georgetown University Law Center in
Washington, D.C.
44
Jones M. Castro, Jr. was elected to the Board of Directors of

BDO Unibank, Inc. on April 20, 2012. Mr. Castro has 46 years
of banking expertise, with 39 years of international banking
experience. From 2009 to 2011, Mr. Castro was the Area
Head for South and Southeast Asia of Wells Fargo Bank,
San Francisco. As Area Head, Mr. Castro had responsibility
for 12 countries and managed 11 overseas offices with a
total of 102 team members, and US$3 billion in loans.
From 2006 to 2009, Mr. Castro was Regional Head for Latin
America 1, including the Caribbean, of the Wachovia Bank,
Miami, and likewise had responsibility for 25 countries,
3 overseas offices, 30 team members, and a US$1.8-billion
loan portfolio. From 2005 to 2006, he was Executive Vice
President and International Banking Group Head of the
Union Bank of California, San Francisco. From 1990 to
Jones M. 1994, he was Senior Vice President – Controller of Bank of
Castro, Jr. California, San Francisco, and from 1994 to 1997, he was its
Senior Vice President of Strategic Planning in Office of the
Lead Independent
President. Mr. Castro is currently Executive Vice Chairman
Director and Trustee of the PhilDev USA and PhilDev S & T, Advisor
Filipino and American, of Wave Computing, Inc., and is a Fellow at the Institute
70 years old of Corporate Directors. Mr. Castro obtained his bachelor’s
degree in Applied Mathematics in Economics and graduated
cum laude from Harvard University. He received his Masters
in Business Administration, Accounting & Finance from
Stanford University.
45
Vicente S. Pérez, Jr. was elected Independent Director
of BDO Unibank, Inc. on April 22, 2019. He is currently
an Independent Director of BDO Leasing and Finance,
Inc. (BDOLF), BDO Finance Corporation, BDO Capital &
Investment Corporation, and DoubleDragon Properties
Corp. He is also a Non-Executive Director of Singapore
Technologies Telemedia Pte. Ltd. Mr. Pérez is currently the
Chairman of Alternergy Group, which operates companies
engaged in renewable (wing, hydro and solar) power
generation in the Philippines. He was Philippine Energy
Secretary from 2001 to 2005. Mr. Pérez briefly served
in early 2001 as Undersecretary at the Department of
Trade and Industry and as Managing Head of the Board
of Investments. Prior to his government service, Mr. Pérez
had 17 years banking experience, first in Latin American
Vicente S. debt restructuring at Mellon Bank in Pittsburgh, and later
Pérez, Jr. in debt capital markets in emerging countries at Lazard in
London, New York and Singapore. At 35, he became General
Partner at New York Investment Bank Lazard Fréres as Head
of its Emerging Markets Group. He was Managing Director
of Lazard Asia in Singapore from 1995 until 1997, when he
co-founded Next Century Partners, a private equity firm
based in Singapore. In 2005, he was briefly a government
appointed director of Philippine National Bank until its
privatization. Mr. Pérez obtained his Masters in Business
Administration from the Wharton Business School of the
University of Pennsylvania in 1983 and a Bachelor’s degree in
Business Economics from the University of the Philippines
in 1979. He was a 2005 World Fellow at Yale University where
he lectured an MBA class at the Yale School of Management.
46
Dioscoro I. Ramos was elected to the Board of Directors

of BDO Unibank, Inc. on January 9, 2016. Since 2011,
Mr. Ramos has been the Chief Investment Officer of RY&S
Investments Ltd., Hong Kong. He was Head of Asia Financials
Investment Research of Goldman Sachs Asia, LLC, Hong
Kong from 1994 to 2011, and appointed Managing Director
in 1998 and Partner in 2006. Prior to that, he was with
Mellon Bank, N.A. with postings in Pittsburgh, Philadelphia,
New York, and Hong Kong. Mr. Ramos is a Certified Public
Accountant. He holds a Bachelor of Science degree in
Business Administration and Accountancy, cum laude, from
the University of the Philippines; and a Master’s degree in
Business from Wharton School, University of Pennsylvania.
Dioscoro I. Ramos
Josefina N. Tan was Director of Banco de Oro Universal

Bank (now BDO Unibank, Inc.) from February 3, 2001 to
August 2005. She then became a Director of Equitable PCI
Bank, Inc. from September 2005 until its merger with BDO
Unibank in May 2007. Ms. Tan was re-elected to the Board
of Directors of BDO Unibank (then Banco de Oro – EPCI,
Inc.) on July 27, 2007. Concurrently, she is Board Advisor
of BDO Private Bank, Inc. She is also Chairman of the
Board of Miriam College and a Trustee of the Development
Center for Finance and the Laura Vicuña Foundation. She
is also a Trustee of the Finex Academy and Treasurer of
the Equestrian Order of the Holy Sepulchre of Jerusalem.
Ms. Tan served as President and Director of BDO Private
Bank, Inc. from August 29, 2003 to April 17, 2017. She
was also Executive Vice President of the former Far East
Josefina N. Tan Bank & Trust Co.; Director and President of FEB Leasing
Non-Executive Director & Finance Corporation; Executive Director and Trustee of
Filipino, 74 years old FEB Foundation, Inc.; and Executive Vice President of FEB
Investments, Inc. until 2000. Ms. Tan holds a Bachelor of Arts
degree with a major in Communication Arts from Maryknoll
College, and a Masters in Business Administration from
Ateneo Graduate School of Business.
47
Gilberto C. Teodoro, Jr. was elected to the Board of
Directors of BDO Unibank, Inc. on April 25, 2014. He is
the Chairman of Sagittarius Mines, Inc. and Indophil
Resources Philippines, Inc. He was formerly Chairman
of Suricon Resources Corporation and PNP Foundation,
Inc. He is also a member of the Board of Directors of
Philippine Geothermal Production Company, Inc., Alphaland
Corporation, and Canlubang Sugar Estate. He served as
Secretary of National Defense from 2007 to 2009 and
was a member of the Philippine House of Representatives
from 1998 to 2007. He continues to advise public sector
agencies and is currently the Chairman of the Philippine
Air Force Multi-Sectoral Governance Council and sits in
a similar capacity at the Philippine Navy. He is a recipient
of the Philippine Legion of Honor with the rank of Grand
Gilberto C. Commander. He trained under former Solicitor General
Teodoro, Jr. Estelito P. Mendoza, Esq., and was involved in a wide
range of issues — constitutional, corporate, criminal, civil,
and administrative — and in pro-bono work to assist
various indigent litigants from 1990 to 1997. Mr. Teodoro
holds a Bachelor of Science degree in Commerce, Major
in Management of Financial Institutions, from De La Salle
University; a Bachelor’s in Law degree (LLB) from the
University of the Philippines; and a Masters in Law degree
(LLM) from Harvard Law School. He placed first in the
Philippine Bar Examinations of 1989 and was admitted to
the State Bar of New York.
48
CORPORATE SECRETARY
Edmundo L. Tan serves as Corporate Secretary of BDO

Unibank, Inc. from July 27, 2007 up to the present and BDO
Private Bank, Inc. from February 2012 up to the present. He
was formerly a Director of BDO Leasing and Finance, Inc. and
now serves as Advisor to the Board. Atty. Tan is a Director of
APC Group, Inc. from 2000 up to the present and as Corporate
Secretary from 2000 until 2016. He serves as Director of
Philippine Global Communications, Inc. from 2000 up to the
present and as Corporate Secretary from 2000 until 2010. He
is a Director of Aragorn Power and Energy Corporation from
2005 up to the present and as Corporate Secretary from 2005
up to 2012. He is currently a Director of PRC MAGMA Resources
(2010 up to the present). He is a Director of OCP Holdings, Inc.
from July 2012 up to the present. He was elected as Director of
Sagittarius Mines, Inc. in March 2016. On December 12, 2019, he
Edmundo L. Tan was elected Director of Concrete Aggregates Corporation.
Atty. Tan was a founder and was elected President of
Philippine Dispute Resolution Center, Inc. in July 2017.
Atty. Tan is the Managing Partner of Tan Acut Lopez & Pison
Law Offices (1993 up to present). He was formerly Senior
Partner in Ponce Enrile Cayetano Reyes & Manalastas Law
Offices, a Partner in Angara Abello Concepcion, Regala &
Cruz Law Offices, and an Associate in Cruz Villarin Ongkiko
Academia & Durian Law Offices. Atty. Tan holds a Bachelor of
Arts degree from De La Salle College, Bacolod and Bachelor’s
degree in Law from the University of the Philippines.
ADVISORS TO THE BOARD
Corazon S. de la Jose T. Sio Harley T. Sy

Paz-Bernardo
Senior Management 49
Joseph Albert L. Gotuaco Rolando C. Tanchanco Walter C. Wassmer
Head, Central Operations Group Head, Consumer Banking Group Head, Institutional Banking Group
Jaime C. Yu Dalmacio D. Martin Lucy Co Dy

Head, Branch Banking Group Treasurer Comptroller
Eduardo V. Francisco Jesus Antonio S. Itchon Ricardo V. Martin

President, BDO Capital & President, BDO Network Bank, Inc. Chief of Staff,
Investment Corporation Office of the President
Edwin Romualdo G. Reyes Luis S. Reyes, Jr. Renato A. Vergel De Dios

Head, Transaction Banking Group Head, Investor Relations and President and CEO, BDO Life
Corporate Planning Group Assurance Company, Inc.
Evelyn L. Villanueva Albert S. Yeo

Head, Risk Management Group President, BDO Private Bank, Inc.
50
Senior Management, continued
Rafael G. Ayuste Jr. Maria Cecilia G. Fonacier Alvin C. Go

Head, Trust and Investments Group Head, Marketing Head, Legal Services Group and
Communications Group Assistant Corporate Secretary
Frederic Mark S. Gomez Roberto E. Lapid Estrellita V. Ong

Head, Information President, BDO Leasing Chief Internal Auditor
Technology Group and Finance, Inc.
Evelyn C. Salagubang Maria Theresa L. Tan Federico P. Tancongco

Head of Recruitment, Employee General Manager, BDO Chief Compliance Officer
Relations, and Cases Review Insurance Brokers, Inc.
Human Resources Group
The relevant qualifications/experience, age and nationality of senior management officers may be found in SEC Form 17-A:
Annual Report that is posted on our website: www.bdo.com.ph/company-disclosures/sec-filings.
51
Board Committees
The Board has established nine (9) committees to help in discharging its duties and
responsibilities. These committees derive their authority from and report directly to the Board.
Their mandates and scopes of responsibility are set forth in their respective Terms of Reference,
which are subjected to annual review and may be updated or changed in order to meet the
Board’s needs or for regulatory compliance. The number and membership composition of
committees may be increased or decreased by the Board as it deems appropriate, consistent
with applicable laws or regulations specifically on the majority membership and chairmanship
of independent directors in various committees. As of December 31, 2019, eight of the nine
board-level committees are chaired by independent directors.
The standing committees of the Board are as follows:
Executive Committee
FUNCTIONS: Chairperson:
▪▪ Exercises the power of the Board in the management and Teresita T. Sy
direction of the affairs of the Bank.
Members:
▪▪ Acts as the main approving body for loans, credits, advances
or commitments and property-related proposals. Antonio N. Cotoco
Jesus A. Jacinto, Jr.
▪▪ Reviews and recommends for Board approval major credit
Guia C. Lim
policies, including delegation of credit approval limits.
Mario B. Palou
until April 22, 2019
During the year, it approved loans and credit facilities, leases and
Edmundo S. Soriano
sale of acquired assets, credit policies, write-offs, resolutions of
Josefina N. Tan
remedial/problem accounts, leases and acquisitions of branch
Nestor V. Tan
sites within its Board-delegated authority.
No. of Total
In December 2018, the Executive Committee was tasked as Executive Meetings No. of
the Oversight Committee for the implementation of the Bank’s Committee Attended Meetings
Sustainability Framework. Teresita T. Sy 47 50
Antonio N. Cotoco 45 50
Jesus A. Jacinto, Jr. 47 50
Guia C. Lim 46 50
Mario B. Palou 12 12
Edmundo S. Soriano 48 50
Josefina N. Tan 49 50
Nestor V. Tan 43 50
52
Board Audit Committee

FUNCTIONS: Chairman:
▪▪ Empowered by the Board to oversee the financial reporting Jose F. Buenaventura
process, system of internal control and risk management (Independent Director)
systems, internal and external audit functions, and
Members:
compliance with governance policies, applicable laws
and regulations. Jones M. Castro, Jr.
(Lead Independent Director)
Their oversight function covers the following areas: Vicente S. Pérez, Jr.
(Independent Director)
▪▪ On financial reporting, the committee reviews the integrity of commencing April 22, 2019
the reporting process to ensure the accuracy and reliability Jimmy T. Tang
of financial statements and compliance with financial (Independent Director)
reporting standards and disclosure requirements set for
listed companies. Advisors:
▪▪ On internal control and risk management, it monitors and Christopher A. Bell-Knight
evaluates the adequacy, soundness and effectiveness of the Corazon S. de la Paz-Bernardo
Bank’s established internal control and risk management Jesus A. Jacinto, Jr.
systems, policies and procedures including implementation
across all units of the Bank to provide reasonable No. of Total
Board Audit Meetings No. of
assurance against fraud or other irregularities and material Committee Attended Meetings
misstatement or loss. Jose F. Buenaventura 12 13
▪▪ On internal and external audit, it recommends the Jones M. Castro, Jr. 13 13
appointment, reappointment and removal of the internal Vicente S. Pérez, Jr. 7 9
and external auditors, remuneration, approval of terms of Jimmy T. Tang 3 4
audit engagement and payment of fees. It reviews non-audit
work, if any, ensuring that it would not conflict with their
duties as external auditors or may pose a threat to their
independence. It approves the annual audit plan and reviews
audit results including the BSP Report of Examination
focusing on significant findings with financial impact and
its resolution. It reviews the implementation of corrective
actions to ensure that these are done in a timely manner
to address deficiencies, non-compliance with policies, laws
and regulations.
▪▪ On compliance, it recommends the approval of the
Compliance Charter and reviews the performance of
the Chief Compliance Officer. It also reviews the annual
plans of the Compliance Office including the Anti-Money
Laundering Unit (AMLU), and evaluates the effectiveness
of the regulatory compliance framework and governance
policies and practices of the Bank to ensure that these are
consistently applied and observed throughout the institution.
53
In this context, the following were done during the year:
On financial reporting, the Board Audit Committee (BAC)

reviewed and recommended for approval to the Board the
quarterly unaudited and annual audited financial statements
ensuring compliance with accounting standards and tax
regulations. On February 20, 2019, it endorsed for approval of
the Board the audited financial statements as of December 31,
2018 including the Notes to the Financial Statements. This
was approved by the Board and disclosed to the public
on February 28, 2019, 59 days from the financial year-
end following the best practice requirement of the ASEAN
Corporate Governance Scorecard (ACGS). It believes that the
financial statements are fairly presented in conformity with the
relevant financial reporting standards in all material aspects.
The related internal controls on financial reporting process,
compliance with accounting standards, more specifically
the changes brought about by the adoption of the Philippine
Financial Reporting Standards 9 and 16, were likewise reviewed.
In overseeing the internal audit function, it reviewed and

approved the Internal Audit Charter and risk-based audit
plan after a thorough review of its scope, audit methodology,
risk assessment and rating processes, financial budget,
manpower resources, as well as changes to the plan during
the year. It reviewed audit reports focusing on high and
moderate risk findings relating to operational, financial and
compliance controls including risk assessment systems with
impact to financial, reputation and information security. It
regularly tracked the timely resolution of findings and asked
for Management’s action plans on items that needed to be
addressed. It ensured the Internal Audit’s independence and
unfettered access to all records, properties and information
to be able to fully carry out its function. It also assessed
the performance of the Chief Internal Auditor and key
audit officers. The Committee is satisfied that the internal
audit function has adequate resources to perform its
function effectively.
On external audit, it ensured the independence, qualification,

and objectivity of the appointed external auditor, which is
accredited by the BSP. It reviewed and discussed the content
of the engagement letter, audit plan, scope of work, focus
areas, composition of engagement team among others, prior
to the commencement of audit work. It comprehensively
discussed the external audit reports, focusing on internal
controls, risk management, governance and matters with
54
financial impact particularly on the changes in accounting and

reporting standards. It reviewed Management’s Letter as well
as Management’s response and action taken on the external
auditor’s findings and recommendations.
On regulatory compliance, it reviewed and approved the

annual plans and independent compliance testing roadmaps
of the Compliance and Anti-Money Laundering (AML) units. It
endorsed for approval of the Board of Directors the revised
Regulatory Compliance and Management Manual and
Money Laundering Prevention Program Manual of the Bank,
which incorporates new and amended regulations as well
as directives by the BSP in its examinations. It monitored
the progress and reviewed the results of the independent
compliance and AML testing, timely submission of regulatory
and prudential reports, compliance to mandatory ratios, as
well as continuous improvement of the compliance and AML
systems. It discussed in detail the BSP Report of Examination
including the results of regulatory examinations of the Bank’s
foreign subsidiaries and reviewed Management’s replies,
thereby ensuring implementation of corrective actions.
It also reviewed legislation and regulatory compliance
reports to ensure that the Bank complies with the relevant
regulatory requirements. In 2019, the Committee reviewed
the performance of the automated system being used by
the Compliance Office for its AML function and related party
database. It also discussed and assessed the Bank’s guidelines
on regulatory and AML emerging risks such as online gaming
business and investment scams.
Reports on cases in operations, whistle blower accounts as

well as non-loan related cases with impact to financials,
internal controls, information systems and reputation were
deliberated on focusing on risk assessment, legal handling, and
fraud prevention.
As part of its commitment to excellent corporate governance,

the Committee conducted a self-assessment for its 2019
performance based on its Terms of Reference. The BAC
likewise evaluated the performance of Internal Audit,
Compliance and AML units, and External Audit to ensure their
effectiveness and achievement of objectives.
55
The BAC reports its evaluation of the effectiveness of the
internal controls, financial reporting process, risk management
systems and governance processes of the Bank based on the
report and unqualified opinion obtained from the External
Auditor, the overall assurance provided by the Chief Internal
Auditor and additional reports and information requested
from Senior Management, and found that these are generally
adequate across BDO.
Corporate Governance Committee

▪▪ Primarily tasked to assist the Board in formulating the Gilberto C. Teodoro, Jr.
governance policies and overseeing the implementation (Independent Director)
of the governance practices of the Bank as well as its
Members:
subsidiaries and affiliates.
Jones M. Castro, Jr.
▪▪ Annually, it also conducts the performance evaluation of the (Lead Independent Director)
Board of Directors, its committees, executive management,
Vicente S. Pérez, Jr.
peer evaluation of directors, and conducts a self-evaluation (Independent Director)
of its performance. It provides an assessment of the commencing April 22, 2019
outcome and reports to the Board the final results of the Jimmy T. Tang
evaluation including recommendations for improvement and (Independent Director)
areas to focus on to enhance effectiveness. until April 22, 2019
▪▪ Oversees the continuing education program for directors and
Corporate No. of Total
key officers and proposes relevant training for them. Governance Meetings No. of
Committee Attended Meetings
During the year, the CGC spearheaded the annual Board Gilberto C. Teodoro, Jr. 6 6
evaluation survey covering the performance in 2018 of the Jones M. Castro, Jr. 6 6
Board of Directors, Board Committees, Senior Management, Vicente S. Pérez, Jr. 4 4
each Director, and Board Advisors. The tabulated results were Jimmy T. Tang 1 2
then referred to the Board. The overall assessment showed
that the Board continues to operate on a very high standard
of independence, committees function effectively and senior
management has the relevant professional experience,
necessary skills and ability to manage the Bank while the
directors have rigorously maintained independence of views
and the relationship between the Board and committee
members remain strong.
Focus in 2019 was directed on the review of the Bank’s

Integrated Annual Corporate Governance Report that was
submitted to the Securities and Exchange Commission, and
the independent validation of the Bank’s representations in the
ASEAN Corporate Governance Scorecard (ACGS). It facilitated
56
the compliance of the directors of the Bank and its subsidiaries

to the regulatory requirement for an annual corporate
governance seminar for Directors. In 2019, BDO Unibank
and its subsidiary, BDO Leasing & Finance, were granted the
Golden Arrow award by the Institute of Corporate Directors
in recognition of their strong corporate governance practices
based on their ACGS scores.
The Independent and Non-Executive Directors, chaired by

Lead Independent Director Jones M. Castro, Jr. conducted
three (3) executive sessions with the External Auditor, Chief
Risk Officer, Chief Compliance Officer and Chief Internal
Auditor without the presence of management to discuss
various matters or issues outside the Audit Committee and
Risk Management Committee meetings. The results of these
sessions were discussed with the Bank’s Executive Directors.
Trust Committee
▪▪ Reviews and approves transactions between trust Dioscoro I. Ramos
and/or fiduciary accounts, accepts and closes trust and (Independent Director)
other fiduciary accounts, and approves the investment, commencing April 22, 2019
reinvestment and disposition of funds or property. Antonio C. Pacis
▪▪ Evaluates trust and other fiduciary accounts at least once
a year. Members:
▪▪ Reviews the Trust and Investment Group’s overall performance, Ador A. Abrogena
profile of funds and assets under its management, industry until January 31, 2019
position, and the risk management reports. Rafael G. Ayuste, Jr.
▪▪ Approves offering of new products and services, commencing February 1, 2019
establishment and renewal of lines and limits with financial Christopher A. Bell-Knight
institutions, and investment outlets and counterparties. Josefina N. Tan
commencing April 22, 2019
▪▪ Annually, the Committee evaluates the performance of the
Trust Officer. Nestor V. Tan
No. of Total
Significant matters taken up by the Committee included, among
Trust Meetings No. of
others, amendments on BDO Trust’s various manuals as well Committee Attended Meetings
as approval of new investment outlets and accreditation of Dioscoro I. Ramos 10 10
additional counterparties. The Committee approved the revised Ador A. Abrogena 2 2
table of organization of BDO Trust, appointment of the new Trust Rafael G. Ayuste, Jr. 7 8
Officer, rationalization of the BDO Unit Investment Trust Funds Christopher A. 10 10
Bell-Knight
and the implementation of PFRS 9.
Josefina N. Tan 5 6
Nestor V. Tan 10 10
Antonio C. Pacis 3 4
57
Risk Management Committee
▪▪ Is responsible for the development and oversight of the risk Jones M. Castro, Jr.
management program of the Bank. (Lead Independent Director)
▪▪ Is responsible for approving risk appetite levels, policies, Members:

risk tolerance limits. It defines the appropriate strategies
Dioscoro I. Ramos
for identifying, quantifying, managing and controlling risk (Independent Director)
exposures including preventing and/or minimizing the impact
Nestor V. Tan
of losses when they occur.
▪▪ Oversees the implementation and review of the risk Advisor:
management plan on an enterprise-wide basis including the Christopher A. Bell-Knight
system of limits of discretionary authority delegated by the
No. of Total
Board of Directors to management and ensures immediate Risk Management Meetings No. of
corrective actions when limits are breached. Committee Attended Meetings
▪▪ Is also responsible for evaluating the continued relevance, Jones M. Castro, Jr. 12 12
comprehensiveness and effectiveness of the risk Dioscoro I. Ramos 10 12

Nestor V. Tan 12 12
management framework.
▪▪ Works with the Audit Committee in certifying in the Annual
Report the adequacy of the Bank’s internal control and risk
management systems.
In accordance with its mandate, the Committee conducted

regular discussions on the Bank’s exposures to various risks
(i.e., credit risk, liquidity risk, market risk, interest rate risk
in the banking book, and operational risk, as well as IT risk
and information security risk) including mitigation strategies,
where necessary and applicable, such as, large exposures and
concentration, asset quality, results of credit stress tests and
its impact on capital adequacy; liquidity gaps and results of
liquidity stress tests; macroeconomic and market updates and
forecasts; Value-at-Risk (VAR), Earnings-at-Risk (EAR), results
of market risk stress tests and impact on capital adequacy;
operational risk profile of the Bank, significant risk incidents,
operational losses and impact on capital adequacy, results of
Business Continuity Plan (BCP) testing, any information security
and data privacy incidents, results of the BSP-mandated
stress tests (i.e. BSP Uniform Stress Test and Real Estate
Stress Test) for banks, results of performance monitoring of
all implemented risk management models, profile of client
inquiries/requests/complaints and a general description of
58
the resolutions/actions taken, in compliance with BSP Circular

857 on Consumer Protection, and social media risk report in
compliance with BSP Circular 949 on the Guidelines on Social
Media Risk Management, and status of compliance activities
related to the Bank’s Data Privacy Management Program
(DPMP), in compliance with the requirements of Republic Act
No. 10173, also known as the Data Privacy Act (DPA).
In 2019, the Committee approved: the renewal of the Terms

of Reference (TOR) of the Risk Management Committee with
no proposed changes; enhancements to the Internal Credit
Risk Rating System (ICRRS) for Corporate & Commercial Loans;
the redeveloped depositor scorecards, behavior scorecards,
and collection scorecards for credit cards and installment
cards; the redeveloped Home Loans Deed of Assignment
(DOA) collection scorecards; results of the annual review of
the Bank’s risk management framework, policies and limits
(as applicable), for market & liquidity risk, operational risk,
social media risk and Trust risk; the priority critical processes
and recovery sequence of systems in relation to the Bank’s
BCP and the 5-year Enterprise BCP progression plan; the
threshold and high level process for reporting of significant
incidents to BSP in compliance with BSP Circular 900; and
the updated Information Security Strategic Plan (ISSP) and
Information Security Program (ISP) in compliance with BSP
Circular 982 on the Enhanced Guidelines on Information
Security Risk Management.
59
Nominations Committee
▪▪ Leads the process of identifying candidates for election Vicente S. Pérez, Jr.
and appointment of Directors and all other positions (Independent Director)
requiring appointment of the Board of Directors, giving full commencing April 22, 2019
consideration to succession planning and the leadership Jimmy T. Tang

needs of the Group. In particular, this process includes the
profiling of the skills and competencies of the currently
serving directors, the gaps in skills and competencies Members:
identified and the search for candidates who are aligned Jose F. Buenaventura
with the Bank’s directions to fill the gaps. It then makes (Independent Director)
appropriate recommendations to the Board. Gilberto C. Teodoro, Jr.
▪▪ Makes recommendations to the Board on the composition (Independent Director)
and chairmanship of the various committees.
No. of Total
▪▪ Keeps under review the structure, size and composition of Nominations Meetings No. of
the Board, including the balance of skills, knowledge and Committee Attended Meetings
experience and the independence of the non-executive Vicente S. Pérez, Jr. 3 3
Directors, and makes recommendations to the Board with Jose F. Buenaventura 7 7

Gilberto C. Teodoro, Jr. 7 7
regard to any changes.
Jimmy T. Tang 3 4
After reviewing the composition of the Board and Committees,
it approved the nominations for the regular and independent
directors on March 12, 2019 in accordance with the
criteria set forth in the By-laws of BDO Unibank, as well
as pertinent regulations of the Bangko Sentral ng Pilipinas
and the Securities and Exchange Commission. After due
deliberations, it recommended to the Board the appointment,
reappointment or election of nominees for Chairperson, Vice
Chairperson, and membership in Board-level Committees,
as well as the reappointment of Mr. Jones M. Castro, Jr as
the Lead Independent Director, and the appointment and/or
reappointment of the Bank’s corporate officers at the Bank’s
Organizational Board Meeting held on April 22, 2019.
The Nominations Committee reviewed and recommended

the hiring and appointment of Mr. Joseph Albert L. Gotuaco
as Senior Executive Vice President (SEVP) and Head of Central
Operations Group, the appointment of the new Trust Officer,
Chief Security Officer, and four other senior vice presidents
(SVP). The promotion of one (1) SEVP, two (2) executive vice
presidents, and four (4) SVPs passed through the Committee
for scrutiny during the year.
60
Compensation Committee
▪▪ Provides oversight on directors’ compensation and Gilberto C. Teodoro, Jr.
remuneration of senior management and other key (Independent Director)
personnel, ensuring that the compensation scheme is commencing April 22, 2019
consistent with the Bank’s culture and strategy, effectively Jimmy T. Tang
aligned with prudent risk taking and commensurate with
corporate and individual performance.
▪▪ Ensures consistency of the compensation policies and Members:
practices across the Group. Jesus A. Jacinto, Jr.
Teresita T. Sy
In 2019, the Committee recommended for approval of the
Josefina N. Tan
Board the compensation policy of the Bank and the increase
in loan limits under the fringe benefit program for staff No. of Total
and officers. Compensation Meetings No. of
Gilberto C. Teodoro, Jr. 2 2
Jesus A. Jacinto, Jr. 3 3
Teresita T. Sy 3 3
Josefina N. Tan 3 3
Jimmy T. Tang 1 1
Information Technology
Steering Committee
▪▪ Provides oversight and governance over the Bank’s IT George T. Barcelon
functions, including approvals of information technology- (Independent Director)
related policies and practices of the Bank and commencing April 22, 2019
applicable guidelines. Gilberto C. Teodoro, Jr.

▪▪ Informs the Board of both internal and external IT-related until April 22, 2019
developments and activities, potential challenges and risks,
progress vs. strategic objectives. Members:
▪▪ Approves and endorses to the Board IT-related best Frederic Mark S. Gomez
practices, strategic plans, policies and procedures. Nestor V. Tan
▪▪ Is responsible for understanding, managing and mitigating Information
technology risks that confront the Bank and its subsidiaries, Technology No. of Total
ensuring that the risks are properly managed and mitigated, Steering Meetings No. of
and monitoring of IT performance including status of major
George T. Barcelon 3 3
IT projects and issues.
Frederic Mark S. Gomez 4 4
In 2019, the Committee approved the Bank’s information Nestor V. Tan 4 4
technology strategy for implementation until 2020 and oversaw Gilberto C. Teodoro, Jr. 1 1
the technical contingency plan, the implementation of the

information technology roadmap, technical incidents, and more
importantly, the progress of cybersecurity-related initiatives.
61
Related Party Transactions Committee
▪▪ Assists the Board in its oversight of the conduct of all George T. Barcelon
Related Party Transactions (RPTs) to protect the interests of (Independent Director)
the Bank and its stakeholders. commencing April 22, 2019
Dioscoro I. Ramos
▪▪ Ensures proper disclosure of all approved RPTs in
accordance with applicable legal and regulatory until April 22, 2019
requirements and confirmation by majority vote at the
Annual Stockholders’ meeting the Bank’s significant Members:
transactions with related parties. Jose F. Buenaventura
On a monthly basis, the RPTC carefully reviews the material
Jones M. Castro, Jr.
related party transactions being proposed by Management. (Lead Independent Director)
The revision of the Bank’s policy on related party transactions Jimmy T. Tang
is one of its most significant accomplishments in 2019. The (Independent Director)
revised policy encapsulates the requirements of the Securities until April 22, 2019
and Exchange Commission on the approval of related party
Advisor:
transactions whose value exceed 10% of the Bank’s assets. The
policy ensures that material RPTs falling under the definition of Jesus A. Jacinto, Jr.
the SEC shall require prior review of an independent external
Related Party No. of Total
party and approval of at least 2/3 vote of the Board with a Transactions Meetings No. of
majority of the independent directors voting in favor of it. Committee Attended Meetings
George T. Barcelon 6 7
Jose F. Buenaventura 11 11
Independent Control Functions Jones M. Castro, Jr. 12 12
Jimmy T. Tang 4 5
Compliance Dioscoro I. Ramos 5 5
BDO’s Compliance Office, thru the Chief Compliance Officer

(CCO), oversees the design of the Bank’s Compliance System,
the overall compliance framework of the Bank executed
through a Compliance Program, and promotes their effective
implementation. The BDO Compliance Office reports to and
is under the direct supervision of the Board Audit Committee.
It is responsible for overseeing, coordinating, monitoring and
ensuring compliance of the Bank with existing laws, rules
and regulations through the implementation of the overall
compliance system and program in accordance with the
requirements of the BSP and other regulatory agencies,
including but not limited to the identification and control of
compliance risks, prudential reporting obligations as well as
compliance training. BDO’s Compliance System forms the
processes, people, policies and other components that, as an
integral unit, ultimately drive the Bank’s initiatives to conform
to industry laws, regulations and standards. In line with the
62
Bank’s initiatives is its commitment to ensure that activities

of the Bank and its personnel are conducted in accordance
with all applicable banking laws and regulations and industry
standards, and this commitment to compliance serves to
protect the Bank and its stakeholders. BDO’s Compliance
Office, as provided in its Charter, conducts independent
compliance tests and reports to the Board Audit Committee
any significant compliance issues or breaches. The AMLU under
the Compliance Office, together with the Bank’s Anti-Money
Laundering Committee (AMLC), focuses on the enforcement
of the Anti-Money Laundering Act and its implementing rules
and regulations, as well as the Terrorism Financing Prevention
and Suppression Act of 2012; the monitoring and reporting
of covered and suspicious transactions, and conduct of AML
training, aimed towards mitigating the risk of the Bank being
used for money-laundering and terrorist financing activities.
As part of its mandate, AMLU oversees the investigation
suspicious transactions under the auspices of the AMLC
of the Bank that is composed of select members from
senior management.
The Bank seeks to prevent money laundering, combat terrorist

financing and stop the flow of funds by detecting and reporting
money laundering and terrorist financing red flags, establishing
policies and guidelines as articulated in a Board-approved
Money Laundering and Terrorist Financing Prevention Program
Manual (MTPP) aligned with AML laws and BSP regulations,
with which frontliners and responsible bank officers
comply. The Bank’s MTPP supports the conduct of proactive
and targeted monitoring initiatives to identify suspected
money launderers and terrorists as well as terrorist-related
transactional activities.
Internal Audit
The Internal Audit Function covers the entire Group including
foreign and local subsidiaries and offices. It adheres to the
principles required by the ISPPIA (International Standard for
the Professional Practice of Internal Auditing), COSO Internal
Control -Integrated Framework, COBITS (Control Objectives
for Information and Related Technology), the Internal Audit
Definition and Code of Ethics.
63
It provides assurance and a systematic, disciplined approach CONSUMER ASSISTANCE
to evaluate and improve effectiveness of risk management, MANAGEMENT SYSTEM
internal control, and governance processes. Upholding a
commitment to integrity and accountability, Internal Audit
provides value to senior management and governing bodies as
objective source of independent advice.
CONSUMER
CONCERNS
Internal Audit reports to the Board of Directors through the
Board Audit Committee (BAC) (parent bank and respective
subsidiaries). It seeks BAC approval for the annual audit plan, CHANNELS
provides updates on accomplishments, reports results of audit PHONE
conducted and tracks resolution of audit findings. Metro Manila (+632) 8631-8000
International Toll-Free Nos.
IAC 800-8-631-8000
Consumer Protection Practices

EMAIL
The Board of Directors approved on August 29, 2015, the [email protected]
BDO Group’s Guiding Principles on Consumer Protection

which serves as BDO’s framework for defining its Consumer SOCIAL MEDIA
Protection Risk Management System (CPRMS). As specified in Send a Private Message (PM) to
www.facebook.com/BDOUnibank
the CPRMS, consumer protection practices are embedded in
the banking operations, and considered in the development
and implementation of products and services. WALK-INS
BDO Branches
BDO’s Code of Conduct reflects the Bank’s commitment

to ensuring that its customers are always treated fairly and
professionally. The Bank established in November 2015 a
EVALUATE & PROVIDE
Consumer Assistance Management System (CAMS) to address LOG A CASE INVESTIGATE FEEDBACK
consumer concerns. To ensure its effective implementation,
the BDO Customer Contact Center was designated to serve as
the bank’s Consumer Assistance Management Unit to ensure
customer inquiries, requests and complaints/problems follow
standard handling procedures and service levels bankwide.
It also monitors timely resolutions by various Business Units
of the Bank and reports the summary to Senior Management
and to the Board’s Risk Management Committee (RMC) on a CONSUMER
periodic basis. Below is the illustration of the Bank’s CAMS.
Effective recourse is one of the five (5) areas of BSP’s Consumer

Protection Framework, and BDO has been seriously devoting
resources to ensure that customer issues are resolved in a timely
manner. In 2019, CAMS logged over 8 million customer cases of
which only 450,969 (5.67%) were problem related in nature and
only 203,391 (2.56%) were valid complaints. A majority of the
cases were inquiries (58.62%) and requests (35.71%).
64
Data Privacy
The Bank has in place a Data Privacy Management Program
(DPMP), which serves as the framework for protecting the
data privacy rights of the Bank’s data subjects, to ensure
compliance with the Philippine Data Privacy Act (PDPA).
The Bank appointed a Data Protection Officer (DPO) who
is registered with the National Privacy Commission (NPC).
Compliance Officers for Privacy (COPs) in each business
and support units (BSUs) were appointed to ensure proper
coordination in the implementation of any initiatives related
to the DPMP. The required data processing systems were
also registered with the NPC. The Data Privacy Policy, Privacy
Statement, and Breach Reporting Procedures were established,
including the templates for Consent, Data Sharing Agreement,
and Outsourcing Agreement. Furthermore, conduct of
Privacy Impact Assessments (PIAs) by critical units were
completed to assess privacy risks in order to ensure that
the necessary security measures are in place to mitigate
risks to personal data and uphold data privacy rights of
individuals. Privacy risk monitoring were also enhanced using
the existing risk management tools of the Bank. Currently,
the Bank is completing the PIAs for the rest of the units and
implementation of necessary security measures is being
monitored. To ensure continuous education within the Bank,
the Data Privacy Training and Awareness Program has been
rolled out, consisting of regular conduct of classroom and
e-learning courses as well as breach reporting exercises/drills.
The Bank has also intensified data privacy awareness with

the in-depth training for COPs and complaints management
training for Customer Contact Center personnel. The Risk
Management Committee (RMC) of the Board is regularly
updated with respect to the progress of the Bank’s compliance
to the PDPA. In view of its commitment to comply with data
privacy requirements, and as part of its continuing assessment
and development efforts, the Bank actively participates in data
privacy forums of the NPC and liaises with other DPOs of the
Bankers Association of the Philippines (BAP).
65
Compliance with the SEC Code of
Publicly-listed companies are required to disclose in their
Annual Report the company’s compliance with the Code of
Corporate Governance and where there is non-compliance, to
identify and explain the reason for such issue. We confirm that
as of December 31, 2019, the Bank has substantially complied
with the recommendations of the Code except for the
following: 1) Policy on retirement age of directors; 2) Disclosure
of board and executive remuneration on an individual basis.
On the retirement age of directors, the Board recognizes

the fact that chronological age is not the main factor in
determining effectiveness of the director in discharging his
duties and responsibilities. The wisdom of senior directors is
a valuable asset. The Board derives much benefit from their
counsel and will continue to utilize them for the benefit of
all its Stakeholders. Age discrimination is discouraged by law,
as once a director has been elected, removal due solely to
age is prohibited. In this regard, the Board decided to hold in
abeyance the implementation of a retirement age policy for
directors and instead review the individual director’s potential
contribution to the Bank and its Stakeholders, and decide on
that basis.
On the disclosure of the remuneration on an individual basis

for Board members and Executive Officers, the Board has
serious reservations given the possible adverse security
issues and poaching of talents by competitors in the industry.
In light of the Revised Corporation Code (R.A. 11232), the
Bank shall await guidance from the Securities and Exchange
Commission, by way of a Memorandum Circular, with regard
to the disclosure of the remuneration of directors on an
individual basis. Meanwhile, the remuneration figures for key
management personnel are disclosed on a consolidated
basis only.
66
On the reporting of the Bank’s sustainability and non-financial

performance across economic, environmental and social
aspects, the Bank issues a separate annual Sustainability
Report starting April 2019. The report outlines the Bank’s
economic, environmental, social and governance performance
for the year preceding the reporting year. It is a substantiation
of BDO’s commitment to the United Nations Sustainable
Development Goals, the principles of United Nations Global
Compact (UNGC), the Greenhouse Gas (GHG) Protocol and
other universal targets of sustainability. The report has been
prepared in accordance with the GRI Standards.
Looking Ahead
The Bank is now in the era of digital transformation and we are
looking at ways to optimize the use of the new technologies to
strengthen our corporate governance practices while remaining
vigilant on the risk of digitization to our business operations.
In ensuring that the Bank stays as the market leader in the
Philippine financial services industry, we are focused on
maximizing the effectiveness of our corporate governance
practices as a business enabler and driver of our performance
in the proper context of risks and rewards, opportunities and
prospects for the Bank. This is essential going forward as
we continue to compete and remain relevant to our various
stakeholders. Globally, there is also an increasing call for
companies to support the UN Sustainable Development Goals
as part of sustainable business performance with emphasis
on strategies that promote economic growth, environmental
protection, efforts that address a range of social needs and
a governance model that considers sustainability issues.
BDO continues to be mindful of these and creating a positive
impact on sustainability.
Corporate Social Responsibility
Finding ways
to improve the
welfare and financial
well-being of Filipinos
It was a remarkable year for BDO
Foundation. On the last year of
the decade, the corporate social
responsibility arm of BDO Unibank
developed and implemented
programs for the benefit of
underserved sectors of society.
Backed by the BDO Unibank
community, the foundation touched
the lives of Filipinos through its
financial inclusion and disaster
response, rehabilitation and
rebuilding advocacies.
Promoting financial education

Embracing its role as a financial education champion, BDO
Foundation partnered with the Bangko Sentral ng Pilipinas
(BSP), the Department of Education (DepEd), the Overseas
Workers Welfare Administration (OWWA), the Civil Service
Commission (CSC), the Philippine Army and the Armed
Forces of the Philippines (AFP) for the development of
financial education programs in support of BSP’s National
Strategy for Financial Inclusion.
Following the launch of the financial education program

for public schools in 2018, the foundation strengthened its
support for the financial literacy component of the K to 12
curriculum and DepEd’s capacity to provide personal finance
training to teachers and non-teaching personnel.
In 2019, BDO Foundation collaborated with the Asian Development Bank
68 (ADB) and BSP to support DepEd in the development of the Financial BENEFICIARIES
Education Integration Policy and Roadmap as well as the Monitoring and OF FINANCIAL
EDUCATION
Evaluation (M&E) System for Financial Education. Through the roadmap,
PROGRAMS
DepEd will set guidelines for the integration of financial education
concepts in learning areas across all grade levels. The M&E framework,
on the other hand, will enable DepEd to assess the gains of the financial 24
education program and identify opportunities for growth.
million
To increase awareness and further push the goals of the program, BDO students in
Foundation sponsored Sineliksik, the video-making competition of 47,000 public
DepEd’s annual National Festival of Talents. The contest tasked students schools
to produce original videos on topics like saving, budgeting and spending. nationwide
The foundation committed to award winning entries in ceremonies
scheduled in 2020. The sponsorship resulted in the development of
more than 60 learner-generated and learner-appropriate videos that will
800,000
public school
be added to DepEd’s library of learning resources. teachers and non-
As the program was deployed nationwide, BDO Foundation, DepEd teaching personnel
and BSP launched the initiative in 15 regions all over the Philippines.
At the events, the foundation donated LED television sets and USB 900,000
memory drives containing financial literacy videos to public schools. civil servants
The deployment of the program gained more momentum as DepEd
secretary Leonor Magtolis Briones issued DepEd Memoranda 32 and 107,
series of 2019, announcing the dissemination of financial literacy learning
2.3
resources in all public schools across the country. million
OFWs
In 2019, BDO Foundation—in collaboration with BSP, OWWA, CSC, the
Philippine Army and AFP—launched financial education programs
for overseas Filipino workers (OFWs) and their families, civil servants, 140,000
soldiers and civilian employees of the army, and the uniformed and soldiers and civilian
civilian personnel of the entire armed forces. The programs paved the personnel of the
way for new interventions and the mainstreaming of financial literacy in armed forces
the capacity building programs of OWWA, CSC, the Philippine Army and
AFP. Aimed at strengthening existing financial literacy initiatives, the
partnership projects were designed to equip the target audience with
the tools, knowledge and resources to achieve financial independence.
Dubbed PiTaKa, short for Pinansyal na Talino at Kaalaman, the financial

education program for OFWs was launched to help migrant workers
attain financial stability so they can come back to the Philippines,
stay with their families and contribute more productively to the
economy. To deploy the program effectively, BDO Foundation, OWWA
and BSP facilitated the training of trainers for more than 500 OWWA
officers from all over the country. The training sessions were aimed at
improving the teaching of financial literacy lessons for OFWs through
the Pre-Departure Orientation Seminars.
Through the financial education program for civil servants, BDO

Foundation, CSC and BSP will deploy relevant training resources on various
financial literacy topics. Financial education materials will be integrated in
training sessions for CSC personnel, rolled out in the entire government
bureaucracy and embedded in the regular training programs for civil
servants across all agencies. The partners will also work on the inclusion
of financial education questions in the civil service eligibility examinations.
The financial education program for soldiers supports the Army No. of No. of
Transformation Roadmap (ATR), a long-term initiative designed to beneficiary BDO 69
Disaster families volunteers
professionalize the army and enable it to accomplish its mission
Typhoon 6,910 190
of serving Filipinos and securing the country. The program aims to

Usman
help soldiers get high marks in their ATR scorecards, particularly in Albay,
on the aspect of personal finance. To disseminate the program Camarines
Sur, Samar
effectively, BDO Foundation, the Philippine Army and BSP trained and Sorsogon
40 out of the 120 trainers assigned by the army. Training for the Fire in 1,810 57
remaining 80 will be conducted in early 2020. The trainers will Quezon City
facilitate financial literacy training sessions for soldiers and civilian Earthquake in 1,920 87
Pampanga
employees all over the country.
Outreach for 162 20
The financial education program for the armed forces covers the Aetas in Iloilo
Earthquake in 1,000 No BDO
entire AFP. It is in line with the AFP Transformation Roadmap, a
Batanes branch in
long-term initiative that aims to build a better and stronger AFP, Batanes
a world-class organization that is a source of national pride. The Typhoon Ineng 600 36
program enables BDO Foundation, AFP and BSP to extend existing in Ilocos Norte
financial literacy resources to all AFP personnel and develop new Flash floods in 1,340 49
Davao City
interventions tailored specifically for the Philippine Navy and
Earthquake in 21,900 212
Philippine Air Force. Cotabato and
Davao del Sur
“In this tripartite partnership with the AFP and BDO Foundation, Typhoon Quiel 5,910 74
our mission is clear—to make our target audience more financially in Cagayan
healthy,” BSP governor Benjamin Diokno underscored. “Through Typhoon 20,550 237
Tisoy in Albay,
this partnership, we hope to trigger a chain reaction, ultimately
Camarines Sur,
ensuring that every uniformed and civilian personnel will develop Catanduanes,
healthy attitudes, skills and behaviors toward money, as each goes Masbate,
Samar and
through the financial education sessions that will be embedded in Sorsogon
regular AFP trainings.” Earthquake in 6,980 105
Davao del Sur
BDO Foundation has developed 16 financial education videos for Total 69,082 1,067
teachers and non-teaching personnel, public school students,
OFWs attending OWWA’s Pre-Departure Orientation Seminars,
OFWs attending OWWA’s Post-Arrival Orientation Seminars,
families of OFWs, new recruits of the Philippine Army, new
army officers, senior officers and civilian personnel. In 2019, the
foundation began production on nine additional videos for OFWs,
civil servants and the armed forces for release in 2020.
Designed to make lessons on personal finance engaging and

compelling for the target audience, the videos were produced to
serve as springboard for discussions on financial responsibility.
The videos covered such topics as saving, budgeting and financial
planning, investments, debt management, the responsible use of
credit, entrepreneurship, avoiding scams and retirement planning,
among others. The partners also developed training modules,
lesson plans and discussion guides for each video.
Encouraged by its productive partnerships, BDO Foundation

collaborated with more organizations to further expand the coverage
of its financial inclusion advocacy and reach an even wider audience.
In 2019, the foundation and BSP initiated discussions with the Bureau
of Fisheries and Aquatic Resources, the Bureau of Fire Protection
and the Philippine National Police for the development of financial
education programs for fisherfolk, firefighters and police personnel
respectively. These partnerships and programs will be formalized
in 2020.
As it forged ties to launch new programs, BDO Foundation continued Rehabilitated rural Population
70 to provide financial literacy training for farmers in support of SM health units covered
Foundation’s Kabalikat sa Kabuhayan, an agricultural initiative Toboso Municipal Health 44,802
Office, Negros Occidental
designed to help fruits and vegetables farmers become self-
Banga Health Center 30,072

sufficient. The foundation, in partnership with National University, Annex - Animal Bite
organized training sessions for 3,000 farmer-beneficiaries in 29 sites Treatment Center and
all over the Philippines. Clinical Laboratory, Aklan
Pototan Rural Health Unit 77,805
All these endeavors help raise the country’s financial literacy levels. and Birthing Center, Iloilo
By sharing lessons on financial responsibility with millions of Lipay Proper Barangay 5,257
Health Station and Birthing
Filipinos, BDO Foundation promotes financial inclusion, contributes Clinic, La Union
to the development of a financially literate citizenry and supports San Gabriel Rural Health 18,172
nation-building. Unit and Birthing Clinic,
La Union
Narvacan Rural Health Unit 45,419
Giving aid to calamity-stricken I, Ilocos Sur
Sta. Maria Rural Health 31,295
communities Unit, Ilocos Sur
Dumarao Rural Health Unit 48,094
In line with its disaster response advocacy, BDO Foundation and Birthing Facility, Capiz
provided aid in provinces placed under a state of calamity in Altavas Rural Health 26,098
Unit, Aklan
2019. Using data from the National Disaster Risk Reduction and
Cabugao Rural Health 38,529
Management Council and reports from BDO offices, the foundation Unit and Lying-in Clinic,
immediately organized relief operations, mobilizing volunteers from Ilocos Sur
BDO and BDO Network Bank branches all over the country. Led by Zarraga Rural Health and 24,089
Birthing Center, Iloilo
their region, area and branch heads, bank officers and staff trooped
Panglao Rural Health Unit, 37,400
to evacuation sites to distribute relief goods containing food, rice Bohol
and drinking water. Baclayon Rural Health Unit 21,301
and Birthing Center, Bohol
In some instances, BDO volunteers mounted relief operations Nagbukel Rural Health 5,443
even as they themselves were affected by the typhoons and Unit, Ilocos Sur
earthquakes. According to the employee-volunteers, the relief Total 453,776
work gave them an opportunity to be a blessing to others, make
a difference in the lives of disaster-hit families and be part of a
worthy cause. For them, serving the community in the spirit of
bayanihan was a rewarding experience. BDO Foundation
In areas inaccessible to volunteers, BDO Foundation’s partners has rehabilitated 83
generously extended assistance. Police personnel, the Philippine
Navy and a group of concerned citizens led by Fr. Zenki Manabat
rural health units
helped the foundation conduct relief operations after earthquakes since 2012 for a
battered Batanes. In quake-stricken Cotabato and Davao del Sur,
the Philippine Army and two non-governmental organizations—
total of 4.9 million
Ako ang Saklay and the Philippine Rural Reconstruction beneficiaries.
Movement—helped distribute relief packs in far-flung barangays.
With their support, aid reached the indigenous people living in the
mountains of Cotabato.
Through the relief operations, BDO employees continue to show

that they are socially responsible individuals willing to go the
extra mile to lend a helping hand to fellow Filipinos in their time
of need. Without doubt, the spirit of volunteerism is alive in
the company.
Ensuring healthy lives For BDO 71
BDO Foundation rehabilitates rural health units in economically Foundation, the

disadvantaged and disaster-affected areas for the benefit of

Filipinos who cannot afford to go to hospitals. The initiative improvement of the
is in line with the foundation’s advocacy to help improve the healthcare delivery
healthcare delivery system in the country, one of the goals under
the Philippine Health Agenda. It is also in keeping with the United
system is necessary
Nations Sustainable Development Goal no. 3 to ensure healthy as it enables
lives and promote the well-being of people of all ages.
doctors, nurses
In 2019, BDO Foundation continued to rehabilitate rural health and midwives to
units across the country with the support of BDO and BDO
Network Bank branches. Backed by local government leaders provide primary
and public health officials, the foundation improved the health and maternal
centers’ layout and interior design, lobbies and waiting areas,
consultation and treatment rooms, offices, clinics and facilities. health services with
New furniture and fixtures were installed. BDO Foundation also greater efficiency.
built breastfeeding stations for nursing mothers, play areas for
children complete with books and toys, and waiting lounges for
the comfortable use of senior citizens.
BDO Foundation also kept a close eye on rural health units

successfully rehabilitated over the past years. Last year, the
foundation conducted maintenance work on eight rural health
units, making sure that the structures are in the best condition
for the optimal use of health workers and patients. The initiative
included the following:
▪▪ Aborlan Municipal Health Office, Palawan

▪▪ Cauayan City Health Office I, Isabela
▪▪ Doña Isabel C. Climaco Health Center, Zamboanga Del Sur
▪▪ Milagros Municipal Health Center, Masbate
▪▪ Municipal Health Office Virac, Catanduanes
▪▪ Pastrana Rural Health Unit, Leyte
▪▪ Polomolok Municipal Health Center, South Cotabato
▪▪ Sta. Barbara Rural Health Unit and Birthing Center, Pangasinan
The rehabilitation program gained greater significance last

year with the launch of a new corporate citizenship initiative. A
medical mission spearheaded by the Marketing Communications
Group and Branch Banking Group, BDO Barangay Day was held
at Bugallon Rural Health Unit I in Pangasinan and Passi City
Health Office in Iloilo, both of which have been rehabilitated by
the foundation.
Participated in by volunteers from BDO branches and supported

by health workers, BDO Barangay Day served as a venue for the
company to provide primary healthcare services, consultations and
72 dental check-ups for free. A total of 593 residents from 75 barangays SCHOOL BUILDINGS
benefitted from the initiative. For its part, BDO Foundation donated CONSTRUCTED
medicines and vitamins to the medical mission. The foundation also
presented its financial education videos as bank officers shared 2 school

buildings
financial literacy lessons with the community.
For BDO Foundation, the improvement of the healthcare delivery near ground zero of the
system is necessary as it enables doctors, nurses and midwives to Marawi siege
provide primary and maternal health services with greater efficiency.
Moreover, the program helps the health centers get good assessment
scores from the Department of Health and accreditation from 1 technical-
PhilHealth. Most importantly, the rehabilitation of rural health units
helps improve the health and well-being of Filipinos who cannot afford
vocational
to go to hospitals. facility
in Mati City, Davao Oriental
Building environments conducive
to learning Initial no. No. of
of student classrooms
When fighting ensued between government forces and a militant group School beneficiaries built
in Marawi City, Lanao del Sur, BDO Foundation immediately mounted Lake Lanao 481 4
relief operations, facilitated donations and funded medical missions National
for the benefit of thousands of Filipinos affected by the armed High School
conflict. After the fighting ended, the foundation sustained its efforts, Harat 220 4
Medina
implementing programs to support the people and the rebuilding of Central
their war-stricken city. Elementary
School
In 2019, BDO Foundation constructed two school buildings near ground
zero of the Marawi siege—one in Lake Lanao National High School
and another in Harat Medina Central Elementary School. Responding
to the need for environments conducive to learning, the foundation
constructed new classrooms complete with blackboards, electric fans,
desks for teachers and chairs for students. The new classrooms enabled
the schools to accept students displaced by the fighting in Marawi.
“We hope this humble gift helps improve the capability of the schools
in Lake Lanao and Harat Medina to accommodate more learners,
especially those from schools that have not yet reopened. Moreover,
we hope the new school buildings inspire the teachers to teach and the
children to learn,” BDO Foundation president Mario Deriquito remarked.
Counting the school building it turned over in Nanapun Elementary

School in 2018, BDO Foundation has constructed three school buildings
in the city as part of its contribution to the efforts of DepEd, a member
agency of Task Force Bangon Marawi, to rehabilitate public schools
in the wake of the siege. Through the projects, the foundation also
supports DepEd’s Adopt-a-School program and efforts to address the
need for more classrooms in the country.
Apart from the school buildings in Marawi, BDO Foundation also

constructed a two-storey technical-vocational facility last year at the
Don Bosco Training Center in Mati City, Davao Oriental. The facility
serves as a workshop, where senior high school students can learn
technical-vocational skills like farming, welding and automotive servicing.
Around 560 disadvantaged and out-of-school youth in Mindanao stand
to benefit from the project in the next three years.
The construction of the facility and the provision of tools and
equipment for the training of students were made possible by SCHOOL BUILDINGS 73
donations from BDO employees. Through the initiative, BDO MAINTAINED

Foundation supports Don Bosco’s mission to educate and

evangelize Filipino youth, capacitate students and make them
employable in the Philippines and abroad. The corporate citizenship
7 schools
in different provinces
initiative is in line with the United Nations Sustainable Development revisited for maintenance work
Goal no. 8 to promote sustained economic growth, full and
productive employment, and decent work for all.
In 2019, BDO Foundation revisited schools in provinces affected

by Typhoon Yolanda, the Zamboanga siege and incidents of fire
to conduct maintenance work on the two-storey, four-classroom
school buildings it has built. The initiative covered the following:
▪▪ Ampayon Central Elementary School, Agusan del Norte

▪▪ Giporlos National Trade School, Eastern Samar
▪▪ Panalaron Central School, Leyte
▪▪ Pasonanca National High School, Zamboanga
▪▪ Pis-anan National High School, Antique
▪▪ Streetlight Study and Development Center, Leyte
▪▪ Tiwi Community College, Albay
Caring for survivors of abuse

The welfare of young Filipinos has always been a priority for
BDO Foundation. This is why it partnered four years ago with
Cameleon Association, an international non-profit organization
that promotes the dignity of children and advocates their human
rights. The foundation committed to co-finance the construction
of Cameleon Negros Center, a shelter for survivors of abuse.
The construction of the center was completed last year. Located

in Silay City, Negros Occidental, Cameleon Negros Center is a
facility where abused girls can undergo therapy, study and receive
counselling. It is a home for abused children, a safe haven where
they can receive the care, guidance and attention they need. The
center initially accommodated 20 beneficiaries but will continue
to accept more survivors of abuse.
Construction was co-funded by Cooperation Humanitaire

Luxembourg and backed by Zonta Club of Makati-Ayala. The third
shelter for abused children Cameleon has built in the country,
the initiative was also made possible with the support of the
local government of Silay, which donated an 8,000-square-meter
property for the project.
According to Cameleon founder Laurence Ligier, “Together, we can

do great things. Cameleon is supported by countries like Belgium,
France and Luxembourg, private NGOs, foundations and big
corporations all over the world. However, we cannot depend on
foreign funding forever. I’m grateful to BDO Foundation, our biggest
local partner, for co-financing the construction of Cameleon
Negros Center with us.”
74
Building homes for Yolanda survivors RESETTLEMENT
HOMES BUILT
Long after the storms have made landfall, BDO Foundation
continues to help Filipinos marginalized by disasters. 60
In 2019, BDO Foundation and the United Nations Human

Settlements Programme (UN-Habitat) completed the construction
resettlement
of 60 resettlement homes for families displaced by Typhoon
Yolanda, bringing the total number of houses built to 100. The first
homes
completed in 2019 for
40 units were turned over in 2018. Located in Tacloban City, the
families displaced by
disaster-resilient, single-detached permanent shelters—complete
Typhoon Yolanda, bringing
with rainwater collection systems and sanitation facilities—were
the total number of houses
turned over to members of the Villa de Tacloban Homeowners
built to 100
Association, the beneficiaries of the project.
The initiative formed part of the foundation’s contributions

to UN-Habitat’s Post-Yolanda Support for Safer Homes and
Settlements program as well as its mission to promote socially
and environmentally sustainable human settlements development
and the achievement of adequate shelter for all. The initiative was
made possible by the city government of Tacloban, City Housing
and Community Development Office, Department of Social
Welfare and Development, Housing and Urban Development
Coordinating Council, Social Housing Finance Corporation and
United Architects of the Philippines.
Moving forward to the next decade

Indeed BDO Foundation has made an impact on the lives of
underserved Filipinos. Last year was particularly noteworthy as
the foundation made significant strides and received recognition
for efforts to institutionalize financial education in the training
programs of government institutions. Just a year after it launched
its first financial education program, the foundation was lauded
for its financial inclusion advocacy.
For contributing to the development of a financially literate

citizenry and collaborating successfully with BSP, BDO Foundation
was conferred the Outstanding Financial Education Partner Award
by BSP. Touted as an exemplary partner institution, the foundation
was awarded for supporting BSP’s National Strategy for Financial
Inclusion and implementing relevant financial education programs.
“Congratulations to BDO Foundation for being the first recipient

of the Outstanding Financial Education Partner Award,” said BSP
Center for Learning and Inclusion Advocacy managing director
Pia Bernadette Roman Tayag. “Our partnership is a showcase of
how public and private institutions can collaborate meaningfully
to achieve the shared objective of building a financially
literate nation.”
Asian Banking & Finance bestowed the prestigious Corporate Social Responsibility Program of the
Year Gold Award to the foundation for its financial education program for public schools. It was the 75
third consecutive year that BDO Foundation received the highest honor given by the Singapore-
based finance publication to corporate foundations. The award was presented in Singapore at the

Retail Banking Awards 2019.
Enterprise Asia, an organization that honors corporate foundations for outstanding

achievements in responsible entrepreneurship, also recognized the financial education program
for public schools as one of the best corporate citizenship initiatives in the region. It was the
third consecutive year that BDO Foundation won the award, which was presented in Taiwan at
the Asia Responsible Enterprise Awards 2019.
Although much has been achieved in the past, more needs to be done in the future. As the
foundation implements current programs in the areas of financial inclusion, disaster response,
rehabilitation and reconstruction, it will make inroads into new initiatives to fulfill its advocacies
and contribute to the achievement of the United Nations Sustainable Development Goals. To
achieve these goals, BDO Foundation will collaborate with partners and leverage the support
of the BDO Unibank community. The challenges are great, but they are surmountable with
stakeholder support.
The mission to serve the people continues. Moving forward to the next decade, the corporate
social responsibility arm of BDO Unibank will continue to find ways for the Filipino.
Financial Statements
Statement of Management’s Responsibility for

The management of BDO Unibank, Inc. and Subsidiaries (the BDO Unibank Group) and of
BDO Unibank, Inc. (the Parent Bank) is responsible for the preparation and fair presentation
of the financial statements including the schedules attached therein, for the years ended
December 31, 2019, 2018 and 2017, in accordance with the prescribed financial reporting
framework indicated therein, and for such internal control as management determines is
necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the BDO
Unibank Group and the Parent Bank’s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting
unless management either intends to liquidate the BDO Unibank Group and the Parent Bank or
to cease operations, or has no realistic alternative but to do so.
The Board of Directors is responsible for overseeing the BDO Unibank Group and the Parent
Bank’s financial reporting process.
The Board of Directors reviews and approves the financial statements including the schedules
attached therein, and submits the same to the stockholders or members.
Punongbayan & Araullo, the independent auditor appointed by the stockholders, has audited
the financial statements of the BDO Unibank Group and the Parent Bank in accordance with
Philippine Standards on Auditing, and in its report to the stockholders or members, has
expressed its opinion on the fairness of presentation upon completion of such audit.
Teresita T. Sy Nestor V. Tan Dalmacio D. Martin

Chairperson of the Board President & Chief Treasurer
Executive Officer
Signed this 27th day of February 2020

Statements of Financial Position 77
BDO UNIBANK, INC. AND SUBSIDIARIES

DECEMBER 31, 2019 AND 2018
(Amounts in Millions of Philippine BDO
Pesos)
UNIBANK, INC. AND SUBSIDIARIES
STATEMENTS OF FINANCIAL POSITION
DECEMBER 31, 2019 AND 2018
(Amounts in Millions of Philippine Pesos)
BDO Unibank Group Parent Bank

Notes 2019 2018 2019 2018
RESOURCES
CASH AND OTHER CASH ITEMS 7 P 64,140 P 53,749 P 62,726 P 52,492
DUE FROM BANGKO SENTRAL NG PILIPINAS 7 309,040 354,132 306,938 349,017
DUE FROM OTHER BANKS 8 38,956 55,292 35,820 48,780
TRADING AND INVESTMENT SECURITIES 9 435,905 385,197 345,278 304,281
LOANS AND OTHER RECEIVABLES - Net 10 2,225,777 2,071,834 2,175,655 2,019,153
PREMISES, FURNITURE, FIXTURES

AND EQUIPMENT - Net 11, 12 46,551 33,660 42,494 29,272
INVESTMENT PROPERTIES - Net 13 16,911 19,785 12,595 15,426
OTHER RESOURCES - Net 14 51,578 48,598 81,594 73,391
TOTAL RESOURCES P 3,188,858 P 3,022,247 P 3,063,100 P 2,891,812
LIABILITIES AND EQUITY
DEPOSIT LIABILITIES 16 P 2,485,228 P 2,419,965 P 2,438,737 P 2,362,302
BILLS PAYABLE 17 167,524 143,623 147,321 117,693
SUBORDINATED NOTES PAYABLE 18 10,030 10,030 10,030 10,030
INSURANCE CONTRACT LIABILITIES 19 42,473 28,506 - -
OTHER LIABILITIES 20 113,016 91,974 97,802 74,166
Total Liabilities 2,818,271 2,694,098 2,693,890 2,564,191
EQUITY 21
Attributable to:
Shareholders of the Parent Bank 368,932 327,372 369,210 327,621
Non-controlling Interests 1,655 777 - -
370,587 328,149 369,210 327,621
TOTAL LIABILITIES AND EQUITY P 3,188,858 P 3,022,247 P 3,063,100 P 2,891,812
See Notes to Financial Statements.

78
Statements of Income
BDO UNIBANK, INC. AND SUBSIDIARIES
BDO UNIBANK, INC. AND SUBSIDIARIES STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2019, 2018 AND 2017
FOR THE YEARS ENDED DECEMBER 31, 2019, 2018 AND 2017
(Amounts in Millions of Philippine Pesos Except Per Share Data)
(Amounts in Millions of Philippine Pesos Except Per Share Data)
BDO Unibank Group Parent Bank

Notes 2019 2018 2017 2019 2018 2017
INTEREST INCOME 22 P 160,572 P 129,040 P 99,795 P 153,081 P 122,615 P 93,786
INTEREST EXPENSE 23 40,681 30,748 18,042 38,581 28,720 16,434
NET INTEREST INCOME 119,891 98,292 81,753 114,500 93,895 77,352
IMPAIRMENT LOSSES - Net 9, 14, 15 6,166 6,286 6,537 5,699 5,700 5,809
NET INTEREST INCOME

AFTER IMPAIRMENT LOSSES 113,725 92,006 75,216 108,801 88,195 71,543
OTHER OPERATING INCOME 24 60,621 49,674 47,206 43,145 35,823 33,633
OTHER OPERATING EXPENSES 24 115,159 98,034 84,865 94,337 81,794 68,929
PROFIT BEFORE TAX 59,187 43,646 37,557 57,609 42,224 36,247
TAX EXPENSE 30 15,019 11,007 9,452 13,376 9,512 8,241
NET PROFIT P 44,168 P 32,639 P 28,105 P 44,233 P 32,712 P 28,006
Attributable to:
Shareholders of the Parent Bank P 44,194 P 32,708 P 28,070
Non-controlling Interests ( 26 ) ( 69 ) 35
P 44,168 P 32,639 P 28,105
Earnings Per Share: 31

Basic P 10.02 P 7.40 P 6.42
Diluted P 10.02 P 7.40 P 6.42

Products and Services
PERSONAL BANKING Trade Services INSURANCE
Branch Banking Import and Domestic BDO Insurance Brokers, Inc.
Peso Deposits Letter of Credit Property Insurance
Standby Letter of Credit Motor Insurance
Checking Account
Savings Deposit
Trust Receipts Engineering Insurance
Time Deposit
Export Financing Marine Hull Insurance
Foreign Currency Aviation Insurance
INVESTMENT BANKING
AND SECURITIES Marine Cargo Insurance
US$ Savings Account
US$ Time Deposit Liability Insurance Bonds
BDO Capital & Investment Specialty Insurance
Third Currency Corporation
Savings Account Employee Benefits
Equity and Quasi-Equity
Third Currency Time Deposit Risk Assessment/Management
Financing
Other Services Fixed Income Financing BDO Life Assurance
Telegraphic Transfer Financial Advisory Services Company, Inc.
Safe Deposit Box Individual Life Insurance
BDO Securities Corporation
Night Depository and BDO Nomura Protection Education
Consumer Loans Securities, Inc. Savings and Retirement
Auto Loan Stock Brokering Group Life Insurance
Home Loan Employee Benefits
WEALTH MANAGEMENT
SME Loan Credit Life
Personal Loan Trust and Investments
Credit Cards Unit Investment Trust Funds PROPERTY MANAGEMENT
Merchant Payment Services Customized Portfolio Property Leasing
Management Property Sales
BUSINESS BANKING Corporate Trusts and Agencies
BDO Leasing and Finance Securities Services and TRANSACTION BANKING
Finance Lease Custodianship SERVICES
Operating Lease Personal Equity and Cash Management Services
Factoring of Receivables Retirement Account (PERA) Electronic Banking
Amortized Commercial Loan Investment Management Remittances
Installment Paper Purchase Advisory Services
Floor Stock Financing Easy Investment Plan TREASURY DEALERSHIP AND
Easy Redemption Plan BROKERING SERVICES
BDO Network Bank, Inc. Online Investment Facility Fixed Income Brokering
Microfinance Loans
Services
BDO Private Bank, Inc.
Corporate Loans Foreign Exchange Derivatives
and Services Wealth Advisory
Revolving Credit Line Investment Advisory and
Term Loan Portfolio Management
Discounting Facility Estate and Succession
Trade Finance Planning
Documentary Collection Trust Agency and Specialized
Project Finance Trust Services
Awards and Recognition
BEST BANK Corporate & Investment Bank Alpha Southeast Asia 13th
BDO UNIBANK, INC. of the Year – Philippines Annual Best Deal & Solution
(2018–2019) Awards 2019
Bank of the Year, Philippines Asian Banking & Finance
(2013, 2017, 2019) Corporate & Investment Best Green Bond – Corporate
The Banker Bank of the Year Banking Awards 2019 (AC Energy Finance
Awards 2019 International US$410M
BDO Capital, Top Arranger Multi-tenor CBI Certified Bond)
Best Bank in the Philippines Investors’ Choice for Primary The Asset Triple A
(2007–2008, 2013–2015, Issues (Corporate Bonds – Country Awards 2019
2017–2019) Philippines)
Euromoney Awards for The Asset Triple A Benchmark Best Follow-on Offering
Excellence 2019 Research Awards 2019 (San Miguel Food Beverage
PhP39.2 billion Follow-
Best Bank in the Philippines Best Corporate and on Offering)
(2010–2019) Institutional Adviser in The Asset Triple A
FinanceAsia 2019 the Philippines Country Awards 2019
Country Awards (2015–2019)
PPP Deal of the Year,
Best Equity Adviser in
Best Bank in the Philippines Philippines
the Philippines
(2014–2017, 2019) (MPCALA Holdings PhP24.2
(2017–2019)
Global Finance billion Project Finance Facility)
Best Loan Adviser in
Best Bank Awards The Asset Triple A Asia
the Philippines
Infrastructure Awards 2019
Best Domestic Bank (2017–2019)
(2011, 2014–2019) The Asset Triple A Transport Deal of the
Asiamoney Best Bank Awards Country Awards 2019 Year – Philippines, Highly
Commended
Best Domestic Bank Project Finance House of (Cavitex Infrastructure
in the Philippines the Year, Philippines Corporation PhP16.2 billion
(2011, 2013–2019) (2018–2019) Term Loan Facility)
The Asset Triple A The Asset Triple A Asia The Asset Triple A Asia
Country Awards 2019 Infrastructure Awards 2019 Infrastructure Awards 2019
Strongest Bank Best Project Finance Deal in BEST PRIVATE BANK
in the Philippines Southeast Asia for 2019 BDO PRIVATE BANK
(2018–2019) (MPCALA Holdings, Inc.’s
The Asian Banker Strongest PhP24.2 billion Toll Best Private Bank
Banks By Balance Sheet Road Financing) in the Philippines
List 2019 Alpha Southeast Asia 13th Asiamoney Best Bank
Annual Best Deal & Solution Awards 2019
BEST INVESTMENT BANK Awards 2019 Best Private Wealth
BDO CAPITAL & INVESTMENT
Best LCY Sovereign Bond Management Bank
CORPORATION in the Philippines
and Best Retail Bond
Best Investment Bank Offering in Southeast Asia (2008–2019)
in the Philippines for 2019 Alpha Southeast Asia
(2013–2014, 2017–2019) (Republic of the Philippines 13th Financial Institution
Global Finance World’s Best via Bureau of the Treasury’s Awards 2019
Bank Awards PhP236 billion or US$4.63
billion Retail Treasury Bonds)
81

Best Private Bank – PRODUCTS & SERVICES Best Wealth Manager,
Philippines Philippines
Best Cash Management Bank
(2015–2019) The Asset Triple A Private
(2008–2009, 2015–2019)
Asian Private Banker Awards Banking, Wealth Management,
Alpha Southeast Asia
for Distinction 2019 Investment and ETF
13th Annual Best Financial
Awards 2019
Best Private Bank Institution Awards
in the Philippines Best Investment Management
Best Cash Management
#1 Asset Management Company, Philippines
Bank in the Philippines
(2015–2019) (2016–2019)
(2011, 2014–2019)
Euromoney Private Banking World Finance Investment
The Asian Banker Transaction
Survey 2019 Management Awards
Banking Awards 2019
Best Private Bank Best Bank for Real Estate
Best Cash Management House
in the Philippines Services Overall Category,
7th Annual Corporate
(2008–2019) Philippines
Treasurer Awards 2018
FinanceAsia 2019 Best Bank for Loan Finance
Country Awards BDO: Philippines Market Category, Philippines
Leader (Asian Banks only) as Euromoney Real Estate
Best Private Bank
voted by corporates, Rank #1 Survey 2019
in the Philippines
2019 Asiamoney Cash
(2015–2019) Best FX Bank for Structured
Management Survey Hedging Solutions &
Global Finance Best Private
Bank Awards 2019 Domestic Cash Management Proprietary Trading Ideas
Bank Of The Year Best Corporate Treasury
Best Private Bank, Sales & Structuring Team
(2014–2016, 2018–2019)
Philippines Alpha Southeast Asia FX &
Asian Banking & Finance
(2010–2019) Treasury Awards 2019
Wholesale Banking
The Asset Triple A Private
Awards 2019
Banking, Wealth Management, Best Foreign Exchange
Investment and ETF BDO Nomura Securities, Inc.: Provider
Awards 2019 Online Securities Platform of (2017–2019)
the Year – Philippines Global Finance Best Foreign
BDO Private Bank, Top Asian Banking & Finance Exchange Providers 2019
Investment House –
Retail Banking Awards 2019
Private Bank Best Innovation in Retail
The Asset Triple A Benchmark Best Overall Asset and Banking, Philippines
Research Awards 2019 Fund Manager International Banker
Best Asset Manager (Equity 2019 Awards
Best Philippine Private Bank
& Fixed Income Funds)
Wealth Briefing Asia BDO Unibank, Top
Best Fund with the optimal Investment House in Local
Greater China Awards for
sharpe ratio Currency Bonds, Philippines
Banking Excellence 2019
Alpha Southeast Asia Fund The Asset Triple A Benchmark
Management Awards 2019 Research Awards 2019
Asset Management Company Best Service Provider Trade
of the Year, Philippines Finance in the Philippines
(2018–2019) (2011, 2015, 2019)
The Asset Triple A Servicing, The Asset Triple A Treasury,
Institutional Investor and Trade, Supply Chain & Risk
Insurance Awards 2019 Management Awards 2019
82
Onshore Fund House of the BDO Foundation: INDIVIDUAL RECOGNITION

Year in the Philippines Outstanding Financial
Nestor V. Tan, Banking CEO
(2016–2019) Education Partner Award
of the Year in Asia
Asian Investor Asset 2019 Awards for Stakeholders
International Banker
Management Awards 2019 of the Bangko Sentral ng
2019 Awards
Pilipinas
Transport Deal of the Nestor V. Tan,
Year – Philippines, Highly BDO Foundation: Financial MAP Management Man
Commended Education Program for of the Year 2019
Lender: BDO Unibank Public Schools in the
Management Association of
(Cavitex Infrastructure Philippines
the Philippines (MAP)
Corporation PhP16.2 billion (2017–2019)
Loan Facility) Enterprise Asia’s Asia Asian Corporate Director of
The Asset Triple A Asia Responsible Enterprise the Year awardee: Teresita T.
Infrastructure Awards 2019 Awards (AREA) 2019 Sy-Coson, Chairperson
(2008–2019)
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Markets Deal (2005-2019) Best of Asia
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6.42% bond due 2020) 15th Asian ESG Awards 2019 Asian Corporate Director of
IFR Asia Awards 2019 the Year awardee: Nestor V.
BDO Unibank, Asian Tan, President & CEO
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(BDO Unibank 35 Billion Pesos (2008–2019)
(2011–2019) 15th Asian ESG Awards 2019:
Fixed Rate Bond) Corporate Governance Asia
The Asset Triple A Best of Asia
9th Asian Excellence
Country Awards 2019 Award 2019 Asia’s Best CEO, Investor
Relations: Teresita Sy-
SUSTAINABILITY AND ESG
Best IR Company (Philippines) Coson, Chairperson
(ENVIRONMENTAL, SOCIAL,
GOVERNANCE) (2011–2019) (2013–2019)
Corporate Governance Asia Corporate Governance Asia
Industry Champion of the Year
9th Asian Excellence 9th Asian Excellence
Asia Corporate Excellence
Award 2019 Award 2019
& Sustainability (ACES)
Awards 2019 Best Corporate Asia’s Best CEO, Investor
Communications Relations: Nestor V. Tan,
BDO Foundation: Corporate President & CEO
(2014–2015, 2017–2019)
Social Responsibility (2011–2012, 2016–2019)
Corporate Governance Asia
Program of the Year (Gold
9th Asian Excellence Corporate Governance Asia
Award) for the Financial
Award 2019 9th Asian Excellence
Education Program
for Public Schools in Award 2019
Platinum Award
the Philippines Best Investor Relations
(2010–2019)
(2017–2019) Professional (Philippines):
The Asset Corporate
Asian Banking & Finance Retail Luis S. Reyes, Jr.
Awards 2019
Banking Awards 2019 (2011–2019)
Corporate Governance Asia
9th Asian Excellence
Award 2019
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Organizational Structure
BOARD OF DIRECTORS
Corporate Secretary
Corporate Risk Related Party

Audit Executive Nomination Trust Compensation IT Steering
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Internal
Audit Risk Trust and
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Management Investments
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Groups Groups Management Groups
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Banking Banking Technology
Investor Relations &

Branch Banking Transaction Banking Corporate Planning Central Operations
Private Banking Leasing and Finance Investment Banking Marketing

Human Resources
(Subsidiary) (Subsidiary) (Subsidiary) Communications
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(Subsidiary) (Subsidiary) (Subsidiary)
Life Insurance Online Brokerage

(Subsidiary) (Subsidiary)
Board and Management
Directory
BOARD OF PRINCIPAL OFFICERS Ma. Ophelia L. Manuel Patricio C.

DIRECTORS Camiña** Malabanan
President & CEO Maria Carla Josefa G. Angelita C. Manulat
Chairperson/ Nestor V. Tan Campos Edgardo R.
Non-Executive Edmund S. Chan Marcelo, Jr.
Director Senior Executive
Arthur Vincent D. Jose Noel M.
Teresita T. Sy Vice Presidents
Chung** Mendoza*
Joseph Albert L.
Romeo R.M. Co, Jr. Tomas Victor A.
Vice Chairman/ Gotuaco
Jonathan T. Cua* Mendoza
Executive Director Rolando C. Tanchanco
Ramon S. David Ramon T. Militar*
Jesus A. Jacinto, Jr. Walter C. Wassmer
Montiel H. Delos Aurea Imelda S.
Jaime C. Yu
President & CEO/ Santos Montejo
Executive Director Executive Geronimo D. Diaz Jaime M. Nasol
Nestor V. Tan Vice Presidents Noel D. Dizon Annie H. Ngo
Ador A. Abrogena Gwyneth M. Entao Cristina G. Ngo
Lead Independent Stella L. Belinda C. Fernandez Frederico Rafael D.
Director Cabalatungan* Maria Cecilia G. Ocampo
Jones M. Castro, Jr. Anthony Q. Chua Fonacier Estrellita V. Ong
Julie Y. Chua Gina Marie C. Galita Maria Rhoda B.
Independent
Gerard Lee B. Co Geneva T. Gloria Orsolino
Directors
Lucy C. Dy Alvin C. Go Jose Alfredo G.
George T. Barcelon
Eduardo V. Francisco* Jonathan Cua Bian T. Pascual
Jose F. Buenaventura
Jesus Antonio S. Go II Antonio O. Peña
Vicente S. Pérez, Jr.
Itchon* Marilyn K. Go Rogel A. Raya
Dioscoro I. Ramos
Jeanette S. Javellana Sonia Maribel D. Go* Maria Nannette R.
Gilberto C. Teodoro, Jr.
Ma. Corazon A. Frederic Mark S. Regala
Non-Executive Mallillin Gomez Susan Audrey P.
Directors Dalmacio D. Martin Richard Emil R. Grau* Rivera
Christopher A. Ricardo V. Martin Lazaro Jerome C. Evelyn C. Salagubang
Bell-Knight Luis S. Reyes, Jr. Guevarra* Cerwina Elenore A.
Josefina N. Tan Edwin Romualdo G. Enrico R. Hernandez Santos
Reyes Geraldine C. Liggayu Roberto Ramon L.
Advisors Cecilia Luz L. Tan Gabriel U. Lim* Santos
Corazon S. de la Evelyn L. Villanueva Donald Benjamin G. Gregorio C. Severino
Paz–Bernardo Albert S. Yeo* Limcaco Ma. Theresa S. Simbul
Jose T. Sio Juan Sabino P. Paul J. Siy
Harley T. Sy Senior Vice Presidents Lizares* Howard Lincoln D.
Noel L. Andrada* Joseph Rhoderick B. Son
Corporate Secretary Maria Carina S. Lledo Noel B. Sugay
Edmundo L. Tan Antonio Manuel Z. Locsin, Jr. Robert W. Sy
Assistant Corporate Rafael G. Ayuste, Jr. Rhodora M. Lugay* Edwin R. Tajanlangit
Secretaries Ferdinand C. Jose Paolo Enrique A. Arthur L. Tan
Sabino E. Acut, Jr. Bacungan Magpale Christopher Raymund
Alvin C. Go Melanie S. Belen Roy Allan V. Magturo P. Tan
88
Board and Management Directory
Maria Theresa L. Tan* Regina G. Caynap Florencia Maria Carina Elena D. Mariano
Federico P. Tancongco Susie S. Cham P. Esguerra Rosano B. Marpuri
Reynaldo A. Leandro M. Chan, Jr. Marie Celeste L. Esma Thelma D. Mazo
Tanjangco, Jr. Francis L. Chiu Elizabeth G. Estrada Abigail P. Melicor
Edna R. Tarroza Abigail Kathryn L. Marirose A. Fernando Maria Paz L. Mendoza
Dante R. Tinga, Jr.* Chiw* Bernard M. Florencio Proceso Z.
Agnes C. Tuason Arlene Y. Chong Sixto S. Gaddi Mendoza, Jr.
Myla R. Untalan Albert N. Chu Caroline H. Garcia Anthony R. Milan
Edward G. Wenceslao Aileen R. Chua Cheryll B. Gaviño* Edelwina Victoria E.
Edwin L. Chua Marcelita I. Millan
First Vice Presidents
Keith H. Chua Geollegue** Dalisay S. Molas*
Donabel R. Aala
Ruby A. Chua Sarah Kathryn T. Mary Ann C. Muñoz
Jeffrey R. Abacan
Salva Fe S. Cirilos Geronimo Francis Jay F. Nacino*
Edna C. Agajan
Luisa J. Co Katherine L. Go Ma. Concepcion Q.
Jocelyn D. Agas
Sonia C. Co Yolanda M. Go Narciso**
Dulce Amor E.
Ma. Cristina Barbara V. Renato S. Gongora Sarah Jessica M.
Alimbuyuguen*
Concepcion Maria Carmela M. Navarro
Carlos S. Alindogan
Maria Cristina P. Guerrero Glenn Birch G. Ong
Milagros R. Alindogan
Cordero Bremel Peter R. Guiao Sophia O. Ong
Susan G. Almendral
Rosario C. Joyleen Vivienne O. Arnaldo Emerito E.
Jose Virgilio O. Alvarez
Crisostomo* Ho Palad
Leticia L. Ang Ley
Edna Christine P. Cruz Lily C. Huang Eva M. Paz
Stanley A. Ang*
Lolita L. Damasco Jasper M. Jimenez* Yolanda A. Pilapil
Laurence S. Antonio
Cesario C. Dayego Anabelle F. Kabigting Cyrus M. Polloso
Apolinario E. Aquino
Iris Suzanne F. Ernesto L. Ladrido IV Jose Eduardo A.
Roland P. Arcadio
De Guzman Cirila S. Lao Quimpo II*
Onofre D. Avellanosa
Joyce B. De Leon Grace G. Lastimosa Alberto O. Quiogue*
Maria Cecilia M. Avila
Ma. Cecilia B. De Paz* John Angelo T. Maria Teresa (Marisa)
Janet B. Bagnes
Priscilla R. De Villa Limcangco M. Quiogue
Jose Luis F. Bautista
Lamberto B. John Emmanuel M. Edlyn L. Quiroz*
Pedro C. Bautista, Jr.
Del Fonso, Jr. Lizares Amaneci Grace V.
Lilli Ann D. Bautista*
Ma. Victoria F. Peter S. Lo, Jr. Ramos
Barbara May M.
Dela Cruz Hannah Regina H. Eduardo C. Ramos
Billano*
Mario A. Deriquito* Lopez Gilbert P. Ramos
Ismael C. Billena, Jr.
Ma. Dina B. Michael Christopher Jonathan L. Ravelas
Manuel Patricio J.
Desembrana B. Lualhati Concepcion G. Reyes
Bondad
Rolando L. Dillague Gertrudes J. Lumain Rose Mary T. Reyes
Ernesto F. Borlado, Jr.
Alvin S. Dimla Maria Pia L. Maceda Gerardo Clemente C.
Adelo C. Brabante
Pollyanna B. Diokno* Francis Jay T. Magboo Rivera*
Maria Eleanor B.
Angela Veronica M. Maria Dolores P. Maritess D. Rivera
Briones
Dulalia Magsalin Lily T. Roxas
Rolino C. Bucao, Jr.
Maria Fe H. Dy Ronald M. Manalastas Luisito S. Salazar
Mary Grace R. Caguioa
Rolando A. Embrador Jesus A. Mañego, Jr. Bernard Q. Santos
Michael R. Cahigas*
Armina C. Empeño Martha Maria Ma. Cecilia S. Santos
Jose Rene C. Carlos*
Joel M. Escala Magdalena H. Roberto P. Sarile
Aurora M. Castro
Maranan
89

Joel Jovencio E. Joy T. Yap Maria Estelita H. Natalie P. Castro
Sarreal Margaret L. Yu Balatbat Ma. Fatima C.
Teresita C. Siy Beatriz Y. Zalazar* Emiliano P. Catambacan
Mary Lou D. Balignasa, Jr. Lucila R. Celestino*
Son Keng Po Vice Presidents Olivia A. Barcarse Eileen R. Cerezo
Ma. Theresa M. Virginia N. Abad Daisy D. Basco Pamela Lourdes T.
Soriano* Kara Q. Abrogar Edgar C. Basconcillo Cervantes
Evelyn K. Sy* Irma I. Acayan Ma. Judith V. Bautista Caroly Y. Chan
Lorelei Lorraine L. Sy Ana Marie R. Acuña Rodora V. Bautista Ramon A. Chan
Angelita C. Tad-Y* Joel B. Adriano Rose R. Beltran Rossana C. Chan*
Jaime A. Talingdan* Editha Marnette I. Clarissa V. Bereña Vennice Veronica S.
Divina N. Tan Agoncillo* Maria Venus F. Bohn Chavez
Judy C. Tan Niccolo N. Aguirre Josephine Anne N. Jeanne K. Ching
Marites L. Tan Peter Blair S. Agustin* Bongat Ronell C. Chiong
Richard R. Tan John Edward F. Mary Jean T. Borbe Catherine S. Choa*
Dennis M. Tangonan Alabastro Lelisa R. Bouazzi Christine T. Chow
Jennifer M. Tantan* Nadine Anne R. Marc Dominique M. Abigail-Sarena T. Chua
Brenda S. Taruc* Alapan Brion Alona S. Chua
Steven C. Te* Maria Angelina Victoria Ma. Eloisa S. Britanico Kimberly K. Chua
Alice O. Teh Salome A. Albert Virginia Gloria B. Nerida S. Chua
Ken Arthur J. Mary Ann L. Alcalde Brocka Sally Jane C. Chua
Tiambeng Edgardo L. Alcaraz Conrado T. Terence C. Chua
Marilyn G. Tin Nena G. Alonzo Buenaventura VI Vanessa Joan C. Chua
Ma. Rosita J. Tinio Patricia Lei S. Alvarillo Mary Josephine C. Johanna N. Chung
Frederick N. Tiu* Janet D. Amora* Buencamino Sue Anne N.
Robert John R. Jose Joel S. Andres Julius O. Buendia Chuongco
Tolentino Jeane K. Ang Lydia Rosa T. Michelle P. Cillan
Ramon Antonio C. Jeffrey O. Ang Cabañero Aris G. Co
Torres Jocelyn A. Ang Norberto Robert S. Rita V. Coronel
Cosme S. Trinidad, Jr.* Mary Ann Q. Ang Cabañero* Dennis L. Crisostomo
Bernhard Aloysius G. Allan T. Antonio Benilda G. Cabardo Irva Monica L. Cruz
Tsai* Alvin V. Antonio Bernardito D. Letty T. Cu
Wendeline Therese M. Editha M. Apacible Caburnay Jerry S. Cureg
Tumolva* David S. Aquino Gerardo O. Calvelo Maria Rowena B.
Arlene Marie H. Uson* Jasmin W. Aquino Emmanuel A. Camua Cuvin
Maria Dolores C. Adele Guia J. Aquitaña Maria Carla D. Cancio Carmelita C. David
Uyliapco Maria Agnes R. Aragon Argeo B. Cantillana Anthony Emmanuel C.
Agerico Melecio S. Rogelio S. Arteta Maria Theresa O. De Dios
Verzola* Alma Roxanne R. Capati** Emil D. De Guzman
Blandina Uvyhilda B. Arvisu Salvador Federico J. Romeo Josef G.
Vicente* Jerome I. Austria Carlota, Jr. De La Cruz
Sharon Mae S. Vicente Jeanette Jean L. Maria Corazon N. Ma. Rita K. De La Vega
Noemi T. Villanueva* Avendaño Casanova Lea C. De Leon
Mary Lou B. Villarba Samantha B. Avinio Katrina Ryan R. Ronald Allan E.
Dandy T. Yap Sohrab D. Bagalacsa Castellano De Leon*
Gertrudes D. Balagot Gibson E. Castillo**
90
Celine Therese Y. Concepcion Y. Fabros Lorybel V. Katigbak Marie Antoniette E.

de los Santos Alma P. Fausto Ma. Elvira M. Lacaba Mariano
German C. Grace C. Figueroa Emma M. Lacsamana Jose Alexis B.
De Ocampo Florencio Aquillo V. Belle D. Lamug Marquez
Teresita Q. Florendo Michele Y. Lao* Lizza R. Marquez
De Ocampo* Ireene Claire C. Flores Rainelda R. Lastimosa Ma. Paz Gladina B.
Vicente A. Patricia L. Forbes Jeromy T. Lastino Marquez
De Ocampo III Zenaida A. Gambol Rhoda D. Lazaro Michael Geronimo G.
Anna Patricia A. Dee* Trina Marie S. Gamo Avelino F. Lazona, Jr. Martin*
Ma. Teresita M. Rossana V. Garcia Edith T. Lee Martin Paolo L. Marty
Del Mundo Suzette L. Garcia Nanny G. Lee Ariel T. Melo
Maria Teresa A. Ramon Alberto B. Michelette S. Legaspi Aloysius D. Mendoza
Del Pinal Gatmaytan Felicitas S. Leonor Virlane S. Mendoza
Mamerto B. Angeline Grace T. Go Ma. Jeanette H. Jocelyn S. Mereria
Del Rosario Rommel S. Gomez Leonor Michael Anthony A.
Joy Kerwin U. Ma. Gloria G. Gonzales Karen C. Lim* Meresen
Dela Cruz* Patricia Ann F. Lilian Leslie T. Lim Juan Nemesio V.
Mary Ann G. Dela Cruz Gonzalez* Roderick L. Lim* Miraflor III
Liezel Y. Diño Sharon Marie Rosita C. Lim Jose Marlo Jude A.
Albert Dizon Margarita A. Alberto V. Lizares Moises
Ellie Cecilia R. Dizon Gonzalez Francisco Gerardo C. Liza M. Montajes
Ma. Eliza Cristina G. Grace M. Granatin Llamas Francis Ali B. Morales
Dolina Elena O. Guevara Jocelyn Ann G. Lo Rolin P. Morcillo*
Cezar G. Domingo Neil S. Guimmayen Henares Michael G. Munsayac
Eileen May E. Betty P. Gumatay Augusto S. Lopez Mercedita J. Nablo
Domingo Ian Raphael G. Lawrence Lou Lucila R. Nabong
Jason Rex F. Drilon Gutierrez Teresa L. Lozada Edgar T. Namoc
Leila D. Dumlao Miguel Antonio M. Maripaz A. Luague Jean V. New
Candy U. Dy* Hernando Gemma Theresa A. Maria Aleli P. Nievera
Francis Javier P. Charles Bryan S. Ho Lustre Ramon Edilberto R.
Ejercito Rowena W. Hodin Sheryll O. Luy Nonato
Girlie Melani A. Romeo O. Ibo Jerry S. Macalinao** Cynthia T. Nopia
Enriquez Camille Zinna S. Idea Prima R. Madrelejos Deborrah Marie G.
Rolando C. Eriga Francis S. Jacinto Peter Louie G. Ocampo
Maria Socorro Y. Marietta M. Jamilla Magdame Jose V. Onda
Escario Zerlita Esperanza Z. Vivian D. Malonjao Dennis H. Ong
Jeanette M. Espinosa Jandoc Lilia N. Manalang Herman L. Ong**
Rosemarie M. Monina M. Jao Jesus Carlo M. Rosalina G. Ong
Espinosa* Mariann Camille M. Manalo Mark Anthony M.
Agnes H. Espiritu Javellana Maria Victoria H. Orendain
Imelda S. Espiritu Maria Agnes E. Manotok Christy K. Ortega*
Marilou M. Espiritu* Jazmines Maria Lourdes S. Ruth J. Pagilagan
Nancy T. Estrada Frieda Concepcion T. Maraingan* Edward Palamos
Maria Vilma D. Jimenez* Ma. Theresa H. Raymund V. Pamittan
Fabian* Ma. Karla F. Kallos Maramba Carla Sherrylyn C.
Ronaldo J. Fabian Rosalisa B. Kapuno* Joseph Y. Marcelo Papa
91

Catalina E. Papa Ma. Elena I. Rigor* Jennifer F. So* Jay P. Torres
Maria Rozelle A. Albert Henry G. Rios Ma. Corazon H. Jose Anton A. Torres
Papasin Maria Asuncion R. Socorro Zenaida A. Triunfante
Ma. Alma Ruth M. Rivamonte Changsoo Sohn Warren N. Ty
Paraiso Anthony B. Rivera Gerardo C. Soriano Jeffrey S. Uy
Rommel L. Parong Joseph Rey M. Rivera Ma. Estrellita S. Sherwin G. Uy
Raymund Gerard T. Edna T. Rogando Soriano Theresa S. Uykieng
Pastor Marissa A. Romero Joel S. Sta. Ana Rosemarie F. Valdez
German H. Penales Maria Martha B. Roxas Geraldine I. Suarez Allan A. Vallido**
Jocelyn A. Peralta Jocelyn G. Sa-A Dorilyn A. Sy Anson L. Villaluz
Divina D. Perez Juancho M. Sabban** Richard S. Sy Louis Cesar C.
Roman M. Perez Cynthia Sadang Dean Arvin D. Villanueva
Toriven R. Piano Evangelina G. Salgado Tabanao* Ma. Patricia F. Villareal
Jason L. Pinto Paulo Ysmael T. Maria Ryanna B. Talan Ma. Rebecca S.
Roderico A. Posadas Salome Aeleen E. Tan Villegas
Mildred F. Protesta Prescy A. Samson Catherine C. Tan Ma. Amalia Lourdes D.
Cynthia A. Puno Leopoldo T. San Juan Grace C. Tan Villenas
Marieflor A. Quirim Quirino C. Santiago Jose Maria Angel Y. Raul B. Vivas
Dina U. Ramos Erlinda C. Santos Tanjuatco Marietta L. Wee**
Lorna S. Rayat Gerard R. Santos Aimee Kathleen T. Richard O. Wenceslao
Rosario D. Raymundo Jennifer B. Santos Tann Carolyn Ann Y. Yao
Charisse B. Recto* John Benedict S. Amy T. Te Belinda Rose S. Yap*
Paul Richard P. Santos* Myrna O. Tee Joel T. Yee
Regondola Marie Anne C. Santos Rowena D. Temporal Margaret C. Young
Raoul L. Reniedo Patrick Peter R. Amylen C. Teo Avery U. Yu*
Katherine U. Resari Santos Benjamin V. Shakira C. Yu
Marie D. Retuya Maria Lourdes M. Teodoro** Jennifer A. Zoleta
Christopher D. Reyes Sevilla* Joel Eric R. Tesoro Nichola Marie Zosa
John Ysmael O. Khristine M. Siayngco Esmeraldo S. Tiburcio
Reyes** Gerald Jose O. Silva Eric Noel D.
Leo Nathaniel M. Beverly Melanie T. Sim Tiongquico
Reyes Yvette Rhodora A. Margarita M. Tobias
Ma. Ana Elena R. Siongco Marcelino S.
Reyes Marirose G. Sioson Tolosa, Jr.
Myra A. Reyes Ma. Christina P. Melissa F. Tong
Ray R. Reyes Sistelo Evelyn F. Torres
Senior Credit Executives

Antonio N. Cotoco, Guia C. Lim, Mario B. Palou, Edmundo S. Soriano
* Seconded to a BDO subsidiary or affiliate.

** No longer with the Bank as of March 31, 2020.
Corporate Information
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BDO Corporate Center
7899 Makati Avenue
Makati City 0726
Philippines
+63 (2) 8840-7000
Company website: www.bdo.com.ph
BRANCHES AND ATMs The Bank will provide, without charge, a copy
For the complete list of BDO branches and of the 2019 Annual Report and Financial
ATM locations, please refer to the Bank’s Statements to its stockholders upon receipt
official website at www.bdo.com.ph. of a written request addressed to the
Corporate Secretary.
STOCKHOLDER INQUIRIES BDO Corporate Secretary
BDO Unibank, Inc.’s common stock is listed 14/F North Tower
and traded in the Philippine Stock Exchange BDO Corporate Center
under the symbol “BDO”. 7899 Makati Avenue
Makati City 0726
Inquiries regarding dividend payments,
Philippines
account status, address change, stock
certificates, and other pertinent matters
should be addressed to the company’s INVESTOR INQUIRIES
transfer agent: BDO Unibank, Inc. welcomes inquiries
from analysts, investors, and the financial
Stock Transfer Service, Inc. community. Please visit www.bdo.com.ph
34/F Unit D Rufino Pacific Tower or contact BDO Investor Relations &
6784 Ayala Avenue Corporate Planning.
Makati City 1200
Philippines BDO Investor Relations &
Telephone: +63 (2) 8403-2410; Corporate Planning
+63 (2) 8403-3433 4/F South Tower
Facsimile: +63 (2) 8403-2414 BDO Corporate Center
7899 Makati Avenue
Makati City 0726
Philippines
Telephone: +63 (2) 8840-7000 local 36069
Email: [email protected]
The 2019 Annual Report and the Financial Supplements can be viewed and
downloaded online at www.bdo.com.ph/company-disclosures/financial-report.
Thrift, Commerce, and Industry
Vicente Manansala
Oil on canvas, 1942
From the BDO Art Collection

BDO Unibank 2019 Annual Report B

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BDO Unibank 2019 Annual Report B

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Table of Contents

Commitment to a Dynamic and Efficient Organization. We are

Commitment to Employees. We are committed to our employees’

Commitment to Shareholders. We are committed to providing our

BDO’s institutional strengths and value-added products and

Through selective acquisitions and organic growth, BDO has

BDO is a member of the SM Group, one of the country’s largest and

“Whether in better times or uncertain times,

A Message from the Chairperson

Q&A with the President and Chief Executive Officer

Q&A WITH THE

Q: What is your overall evaluation sacrificing asset quality. Second, we needed

Q&A with the President and Chief Executive Officer

P44.2 billion 127 new

Awards and STRONGEST BANK

The Asset Triple A

Through various programs and projects,

with access to improved rural health units

BDO CAPITAL, INDUSTRY CHAMPION BEST INVESTOR RELATIONS

Resources Gross Customer Loans

Deposit Liabilities Capital Funds

* attributable to shareholders of the parent bank

Outlook for 2020

THE BANK’S STRATEGY IS FOCUSED ON THREE (3) CORE AREAS, NAMELY:

Overall Risk Management Culture

The BDO Unibank Group’s goal is to remain a strong bank

▪▪ A strong financial position by maintaining adequate

Bank-Wide Risk Governance Structure Risk Oversight

The Assets and Liabilities Committee, which operates within

The Bank operates an enterprise-wide risk management

2019 Performance 2019 RECORD-

Non-interest income reached P60.6 billion, led by fee-based income

Total capital base went up to P370.6 billion, with Capital Adequacy

Performance Review and Report on Operations

INSTITUTIONAL Report on Operations

By the fourth quarter, IBG saw a recovery in commercial loan bookings

To support ongoing geographic expansion, IBG increased its personnel,

A promising area for expansion is cross-border and offshore lending.

BDO Leasing and Finance (BDOLF) faced a challenging year in 2019,

CBG reorganized provincial business units for business expansion and

Performance Review and Report on Operations

BRANCH BANKING Branch Banking

73% domestic branches and banking offices opened nationwide, bringing

127 the back of the 8% year-on-year increase in low-cost CASA deposits.

1,434 potential is highest, recognizing customers’ preference for a welcoming

4,466 The Bank continues to make banking as quick and convenient as

24% resumption of salary loans to government employees since mid-2018

For 2020, BDONB will further expand its network to be complemented

The Treasury Group posted good growth in 2019, adopting an

The Group likewise supported the Bank’s efforts at diversifying funding

Investment Banking BDO CAPITAL

BDO’s investment banking subsidiary, BDO Capital & Investment Participated in

Performance Review and Report on Operations

Wealth Management and Advisory

Payments and Information Services

In 2019, Cash Management Services (CMS) was reorganized to create

Insurance BDO INSURE

BDO Insurance Brokers, Inc. (BDO Insure) responded aggressively to

Performance Review and Report on Operations

Looking ahead to 2020, BDO Insure will aggressively pursue cross-

Over 20% momentum in 2019 on the continued increase in premiums as well

Corporate governance in BDO is about