Introduction

Banco De Oro or BDO Unibank, Inc. is the largest bank based in Makati City,
Philippines, ranking fifteenth in Southeast Asia, 116 th in Asia, and 234th largest bank
globally, in term of total assets. This bank is also a member of SM Group and the
largest bank in the country by market capitalization.

BDO is a universal bank, which provides products and services to the retail and
corporate markets including lending, deposit-taking, foreign exchange, brokering, trust
and investments, credit cards, corporate cash management and remittances. The bank
also offers Leasing and Financing, Investment Banking, Private Banking,
Bancassurance, Insurance brokerage and stockbrokerage services, through its
subsidiaries.

BDO Unibank was established on January 2, 1968, as Acme Saving bank. In

November 1976, Acme was acquired by the SM Group of companies that was owned
by retail magnate, Henry Sy, and renamed Acme as Banco De Oro Saving and
Mortgage Bank. In December 1994, BDO became a commercial bank and was
renamed as Banco De Oro Commercial Bank, and it became universal in September
1996, which then led to the bank’s name being changed into its current name, Banco
De Oro Universal Bank or BDO UniBank.

BDO Unibank has the largest distribution network with over 1,200 operating
branches and more than 4,000 ATMs nationwide, as of 2018. The bank is currently
country’s largest bank in terms of consolidated resources, customer loans, deposits,
assets under management and capital, as well as branch and ATM network nationwide.

I. Mission and Vision

Mission Statement
We are in business for our customers, shareholders and employees. We
shall deliver creatively innovative products and cross-sell the BDO
Unibank Group’s services supported by procedures, systems and
processes which will ensure utmost customer satisfaction. We shall
recognize and reward excellence in our employees and shall provide an
 environment conducive to maximizing their potentials as we work
cohesively as a team. We shall generate consistently high returns for our
shareholders.
Vision Statement
We shall be at the forefront of the leasing and financing industry in the
Philippines and in the Asia Pacific Region. We shall have the most
extensive market reach and shall be composed of highly trained,
technically competent and upright professionals working as a team and
contributing to the growth of the nation and the communities we serve.
Recognizing that the customer is the focus of our activities, we shall lead
the industry by providing modern and relevant financial services which
exceed their expectations.
II. Core Values
Commitment to Customers
We are committed to deliver products and services that surpass customer
expectations in value and every aspect of customer services, while remaining to
be 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 provide our shareholders with superior returns over the long
term.
III. Business Report
a. Business Model
i. Infrastructure
 1. Key Partners
BDO’s bank partners are:
a. Well Fargo in United States
b. Seven Bank in Japan
c. CIMB in Malaysia
d. DirectRemit Emirates NBD in United Arab
Emirates
e. Commercial Bank in Qatar
f. DBS and POSB in Singapore

BDO’s global remittance partners:

a. Xoom by Paypal
b. Ria Money Transfer
c. MoneyGram Money Transfer
d. Western Union
e. Transfast
f. UAEXchange
g. iRemit
h. Xpress Money
i. Remitly
j. Small World Money Transfer
k. WorldRemit
l. TransferWise
b. Business outlook
Global economic growth is expected to decelerate in 2019 on
continuing trade tensions and an extended China slowdown. Combined
with the higher interest rate environment along with the uncertainty over
other tax reform packages that may potentially impact on investments, the
Philippine economic pace is seen to continue moderating.
Nevertheless, growth will be supported by the rebound in consumer
demand on easing inflation trends and added boost from election-related
 spending for the mid-term elections in May, supplemented by the
government’s continued rollout of infrastructure projects, particularly in
regions outside Metro-Manila.
Inflation is seen falling within the BSP’s 2%-4% target range and
should allow the BSP to keep interest rates on hold and even cut reserve
requirements. The more stable market environment should benefit the
banking sector in terms of sustained, albeit more tempered loan growth
while asset quality is generally expected to remain benign.

BDO Unibank Inc (BDO) Forecast Chart, Long-Term Predictions for Next

Months and Year: 2020, 2021
 BDO Unibank Inc (BDO) Stock Price Prediction, Stock Forecast for next months
and years
Minimum Maximum
Date Opening price Closing price price price Change

BDO Unibank Inc Stock Price Forecast for 2020

May 2020  149.698  159.078  148.565  160.000 5.9 % ▲

June 2020  149.209  148.951  148.827  159.318 -0.17 %▼
July 2020  148.914  150.734  148.914  160.931 1.21 % ▲
August 2020  161.059  149.839  149.319  161.059 -7.49 %▼
September 2020  149.497  150.164  149.476  160.574 0.44 % ▲
October 2020  150.295  159.665  149.338  160.502 5.87 % ▲
November 2020  159.681  153.710  149.480  163.639 -3.88 %▼
December 2020  153.285  156.250  152.327  165.113 1.9 % ▲

c. Strategy and Performance

BDO’s overall strategy focuses on further building on its strong
business franchise to maintain leadership positions across most business
lines and strengthen its capabilities to support future growth, while nimbly
responding to strategic opportunities and market challenges.
The Bank’s strategy is focused on three (3) core areas, namely:
1. Building a diversified and sustainable earnings stream
through branch expansion, provincial lending and deposit-
taking initiatives and increased fee income via cross-selling
2. Creating operating leverage by setting up an operating
platform to support future growth, complemented by digital
strategies
3. Prudently managing its balance sheet by conservatively
provisioning for risk assets, complementing current funding
with long-term funding sources and ensuring sufficient
capital to support growth
 The year 2018 was a recorded year for BDO, as they achieved new
milestones while creating value for their stakeholders. They are able to
achieve record profits while maintaining their market-leading positions in
their major business lines.

They reported an all-time-high net income of Php 32.7 Billion in

2018 on strong growth across all business segments, exceeding the
Bank’s earnings guidance. Customer loans rose by 15% to P2.0 trillion on
broad-based increases across all loan segments, while total deposits went
up by 14% to P2.4 trillion, led by the sustained growth in low-cost CASA
deposits (comprising 70% of total deposits). As a result, net interest
income rose by 20% to P98.3 billion.

Meanwhile, operating expenses rose by 16% to P98.0 billion. The

taxes and licenses component of operating expenses grew by 41% as a
result of higher business volumes and increased documentary stamp
taxes (DST) under TRAIN. Excluding these, operating expenses would
have grown by only 13%, reflecting BDO’s continuing investments in its
branch network and strategic initiatives. In 2018, BDO including One
Network Bank (ONB) opened 128 new domestic branches, and 1 new
foreign branch in Singapore to bring total operating branches to 1,309.

The Bank’s capital base stood at P328.1 billion, with Capital

Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) ratio at 13.8%
and 12.1%, respectively, both well above regulatory levels.

Looking to 2019, BDO believes that it is well positioned to benefit

from growth opportunities related to the country’s favorable demographics
and the government’s infrastructure build-up.

Reference:

Introduction: https://en.wikipedia.org/wiki/Banco_de_Oro
 I. Mission and vision: https://www.bdo.com.ph/business/leasing-financing/about-us
II. Core values: https://www.bdo.com.ph/sites/default/files/pdf/BDO%20Unibank
%202018%20Annual%20Report.pdf
III. Business report
a. Business model
b. Outlook: https://www.bdo.com.ph/sites/default/files/pdf/BDO%20Unibank
%202018%20Annual%20Report.pdf
https://walletinvestor.com/stock-forecast/bdo-stock-prediction
c. Strategy and performance:
https://www.bdo.com.ph/sites/default/files/pdf/BDO%20Unibank
%202018%20Annual%20Report.pdf