The product of a
merger heralded as unprecedented in size and scale in the Philippine banking
industry, Banco De Oro Unibank (BDO) today represents a firm consolidation of
distinct strengths and advantages built over the years by the entities behind
its history. More importantly, BDO is an institution that does more than honor
its past; it continues to improve on its present, and moves with innovation and
dynamism toward an even stronger future.
BDO?s reputation as
a full-service universal bank remains as formidable as ever. It has the ability
to provide a complete array of industry-leading products and services to the
retail and corporate markets including Lending (corporate, commercial,
consumer, and SME), Deposit-taking, Foreign Exchange, Brokering, Trust and
Investments, Credit Cards, Corporate Cash Management and Remittances.Through its subsidiaries, the Bank offers
Leasing and Financing, Investment Banking, Private Banking, Bancassurance,
Insurance Brokerage and Stock Brokerage services.
Its
institutional strengths and value-added products and services hold the key to
its successful business relationships with customers. On the front line, branch
banking has continuously been setting high standards as a sales and
service-oriented, customer-focused force. Through selective acquisitions and
organic growth, BDO is positioning for increased strength and continuing
expansion into new markets.
AWARDS & CITATION
Part of BDO?s heritage is its performance as recognized by both local
and international award-giving bodies. BDO was adjudged in 2010 as the
?Best Bank? and the ?Best Foreign Exchange Bank? by FinanceAsia, the
?Best Bank? by Alpha Southeast Asia, as well as ?Best Emerging Market
Bank in the Philippines? by Global Finance. The Bank has likewise been
voted by analysts and investors across Asia-Pacific as among the
region?s and the Philippines? best managed companies in Finance Asia?s
Best Managed Companies 2009 Survey, as well as Wall Street Journal?s
Asia?s 200 Most Admired Companies. The Bank received in 2008 and 2007
the highly coveted ?Best Bank in the Philippines? award from Euromoney,
the globally-recognized finance publication.
Meanwhile, investment banking subsidiary BDO Capital & Investment
Corporation continues to reap international recognition. It received a
record three awards in 2010 from FinanceAsia, namely, ?Best Investment
Bank? for the fourth consecutive year, ?Best Bond House?
for the third time and "Best Equity House" for the second year in a row , as well
as two awards from AsiaMoney for ?Best Domestic Debt House? and ?Best
Domestic Equity House?. BDO Capital was likewise recognized by Alpha
Southeast Asia as ?Best Investment Bank? and ?Best Bond House? for the fourth
consecutive year in 2010, on top of previous
awards that included the ?Best Country Deal for the Philippines? and the
?Best Domestic Currency Bond Deal? in 2009, and ?Best Equity House? in
2008. It was also cited as ?Best Domestic Investment Bank? in 2009 and
2008 and ?Best Equity House? in 2008 by The Asset.
For its impressive financial results and its open architecture platform,
BDO?s wholly owned subsidiary, BDO Private Bank, bagged the ?Best Local
Private Bank in the Philippines? Award for the second consecutive year
in 2010 from Euromoney, and ?Best Wealth Management Hsouse? Award from
Alpha Southeast Asia for three consecutive years in 2008, 2009, and 2010.
Other prestigious international awards garnered in previous years include
Best Wealth Management House in 2009 by The Asset, and ?Best Private Bank?
in 2009 and 2008 by FinanceAsia.
Notable achievements have likewise been reaped by BDO?s Cash Management,
having been named ?Rising Star Cash Management Bank? in 2010 and 2009
by The Asset, ?Best Cash Management Bank in the Philippines? both in 2009
and 2008 by Alpha Southeast Asia and voted by financial institutions as
?Best Local Currency Cash Management Services in the Philippines? in the
Asiamoney 2008 Cash Management Poll. BDO has also received the Asian
Banker Achievement Award for Trade Finance in 2010; as well, it received
the award for Top Commercial Bank on Overseas Filipino Remittances in
2010 and 2009 from the Bangko Sentral ng Pilipinas.
In recognition
of its continuing commitment to the development of Corporate Governance
in the region, BDO was chosen as one of the recipients of the Corporate
Governance Asia Annual Recognition Awards for three consecutive years
in 2008, 2009, and 2010.
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.
CORPORATE MISSION
To be the preferred bank in every market we serve by consistently providing innovative products and flawless delivery of services, proactively reinventing ourselves to meet market demands, creating shareholders value through superior returns, cultivating in our people a sense of pride and ownership, and striving to be always better than what we are today… tomorrow.
Corporate Profile
The product of a merger heralded as unprecedented in size and scale in the Philippine banking industry, Banco De Oro Unibank (BDO) today represents a firm consolidation of distinct strengths and advantages built over the years by the entities behind its history. BDO is an institution that honors its past, continues to improve on its present, and moves towards the future with confidence and strength.
BDO is a full-service universal bank. It has the ability to provide a complete array of industry-leading products and services to the retail and corporate markets including Lending (corporate, middle market, SME and consumer), Deposit-taking, Foreign Exchange, Brokering, Trust and Investments, Credit Cards, Corporate Cash Management and Remittances. Through its subsidiaries, the Bank offers Leasing and Financing, Investment Banking, Private Banking, Bancassurance,
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. Through selective acquisitions and organic growth, BDO has positioned itself for increased balance sheet strength and continuing expansion into new markets.
BDO is a member of the SM Group, one of the country's largest and most successful conglomerates with businesses spanning between retail, mall operations, property development (residential, commercial, resorts/hotel), and financial services. Although part of a family conglomerate, BDO's day-to-day operations are handled by a team of professional managers and bank officers.
Awards & Citations
BDO is a recipient of multiple awards from various local and international award giving bodies for both institutional and product excellence. A listing of this awards is detailed in the bank's website under "About Us - Awards and Citations".
Corporate Social Responsibility
The Bank
carries out its corporate social responsibility through the BDO
Foundation, a non-stock, non-profit organization that promotes
initiatives based on the Bank's long standing record of support to
social development. The Bank's corporate social responsibility focuses
on developing communities through advocacy programs focusing on three
vital areas, namely, decent shelter, sustainable livelihood, and
practical education for the marginalized sector of society. As well, the
BDO Foundation actively promotes volunteerism among its employees who
help out in the Foundation's various activities that reinforce these
programs and include, among others, community building,
livelihood/skills training, fund raising, and environmental/green
initiatives. Through these, the Bank hopes that it is able to give back
to society and make a positive contribution to the broader community it
serves.
BDO Group of Companies
as of April 2011
Philippine-based Firms
BDO Capital & Investment Corporation (BDO Capital)
BDO BDO Elite Savings Bank, Inc. (formerly GE Money Bank, Inc.)
Best Bank in the Philippines 2010
Best Foreign Exchange Bank in the Philippines 2010
Top Bank in the Philippines' Best Managed Companies, 2009
Best Investment Bank - BDO Capital, 2007, 2008, 2009, 2010
Best Equity House - BDO Capital, 2007, 2009, 2010
Best Bond House - BDO Capital, 2007, 2008, 2010
Best Private Bank - BDO Private Bank, 2008, 2009, 2010
Among the Best Managed Companies in the Philippines, 2007
Best in Corporate Governance, 2007
Most Organized Investor Relations, 2011
Best Bank in the Philippines, 2010
Best Investment Bank - BDO Capital, 2007, 2008, 2009, 2010.
Best Bond House in the Philippines - BDO Capital, 2007, 2008, 2009,
2010
Best Private Wealth Management House - BDO Private Bank, 2008, 2009, 2010
Best Cash Management Bank in the Philippines, 2008 and 2009
Best Debut Bond Deal of the Year in Southeast Asia (Magat Hydropower Privatization) - BDO Capital,
2007
Best Equity House - BDO Capital, 2008
Best Vanilla Loan Deal in Southeast Asia (Magat Hydropower
Privatization)- BDO Capital, 2007
Best Emerging Market Bank in the
Philippines, 2010
Best Foreign Exchange Provider in the Philippines, 2010
Best Trade Finance Bank in the Philippines, 2010
Best Trade Finance Provider in the Philippines, 2008
Platinum Award- All Around Excellence, 2010
Rising Star Cash Management Bank, 2009,
2010
Best Private Bank in the Philippines - BDO Private, 2010
Best Wealth Management House, BDO Private, 2009
Best Domestic Investment Bank - BDO Capital, 2006, 2007, 2008, 2009, 2010
Best Equity House in the Philippines - BDO Capital, 2008, 2010
Best Deal in the Philippines - BDO Capital, 2009
Best Deal in the Philippines (BDO EPCI merger), 2007
Best Project Finance Deal (Privatization of Magat Hydro Power) - BDO
Capital, 2007
AsiaMoney
Best Domestic Equity House - BDO Capital, 2008, 2010
Best Domestic Debt House - BDO Capital, 2008, 2009, 2010
Best Country Deal for the Philippines - BDO Capital, 2009
Best Domestic Currency Bond Deal - BDO Capital, 2009
Best Domestic Provider for Local Currency Products (Structured Currency
Product), 2009
Best Domestic Provider of Foreign Exchange Services, 2007, 2009
Best Local Currency Cash Management Services in the Philippines, 2008
Best Newly Listed Company in the Philippines 2002
Best Remittance Business, 2011
Achievement Award for Trade Finance, 2010
Euro Money
Best Local Private Bank - BDO
Private, 2009, 2010
Best Bank, 2007, 2008
Best Investor Relations Award, 2011
Among those cited for Excellence in Corporate Governance, 2008, 2009, 2010
Top Commercial Bank on Overseas
Filipinos Remittances, 2009, 2010
Highest Transaction Count Growth -VISA
Credit Classic, 2010
Highest Card in Force Growth- VISA Credit Classic 2010
Recognition Award for Highest Average
Credit Card Spend Growth, 2009
Best Cardholder Promo Award - BDO
Credit Cards, 2009
Among the region's and the Philippines'
Best Managed Companies, 2009
Agent of the year, 2008
Best Collaboration in Brand Building, 2007
Best Bank in the Philippines 2007
Code of Conduct
Introduction
The BDOUB Code of Conduct (“Code”) outlines the principles and policies that govern the activities of the institution, and to which all directors, officers and employees and those that work for the institution, its subsidiaries and affiliates, should read and follow.
These principles and policies reflect the values the institution subscribes to and promotes.
The implementing rules and administrative details are left to Management to issue and enforce.
Responsibilities To BDOUB
Covered individuals or parties are responsible for maintaining ethical standards including accounting controls.
They are expected to comply fully with appropriate laws and regulations, as well as with the internal standards or policies and procedures.
They are not to use the institution's name improperly nor to
misrepresent it for personal gains or advantage.
All covered individuals shall not deliberately mislead
customers, the public or other colleagues by making false or misleading statements or by withholding information.
Anybody who becomes aware of any violations of law,
regulations or policies should report his suspicions to his superiors or to any of the designated office or individuals.
The institution's assets (physical, financial or intellectual) may be used only for proper purposes.
Responsibilities for the Workplace
The institution is committed to fair employment practices and a work place free from discrimination, harassment (including sexual harassment) or intimidation of employees.
The institution is committed to a workplace free from drug use or sale.
The institution is committed to the safety of the employees and others in its premises.
Conduct Relating to Customers and External Constituencies
The customers, suppliers, competitors or other who deal with the institution and its related enterprises must be treated fairly.
Accepting and giving of gifts, including entertainment services or activities, are not permitted except as may be allowed by strict internal guidelines.
The institution strictly prohibits the acceptance of gratuities,
extraordinary commissions or any form of payment from customers or suppliers in exchange for favorable treatment or considerations.
Publications, speeches, media interviews and advertisements need appropriate internal clearance; this includes lobbying activities in support of any particular legislative proposals.
Due respect to the privacy and confidentiality of dealings with customers shall be strictly observed.
Certain transactions or information shall not be made available to groups or individuals within the institution where there may exist potential conflict on interest, more particularly between credit and investment operations.
Complaints from customers shall be handled with expediency in accordance with internal rules.
The institution will not make political donations that may be
interpreted as an attempt to encourage favorable treatment of the Bank and any of its subsidiaries, affiliates, directors, officers and employees.
Conduct Relating to Investment and Outside Activities
Trading in the institution's and related entities' securities while in possession of material non-public information is not permitted and is considered illegal.
Real and perceived conflict of interest shall be avoided when investing in outside business activities or accepting Directorships.
Queries of complaints from stockholders shall be immediately referred to the designated office or officials.
Observance of Standards of Conduct for Individuals
Certain rules and procedures are enforced as regards the items enumerated below, and deviations from these standards shall be considered in the individuals' performance ratings:
Attendance and punctuality are expected from all concerned
(they not only make effective use of time but also reflect courtesy to others).
Integrity (honesty, professional behavior) is expected to be
observed in all dealings with customers, regulators, co-employees, and the public in general.
Engaging in fraud, directly or indirectly, connivance and
facilitation in committing fraud are totally prohibited.
Decorum must be observed to promote harmony and respect within the organization and in dealing with external constituencies.
Prescribed uniform shall be followed for clear identity and
loyalty; it also promotes the institution's image and values.
Loyalty which is the highest commitment to the interest of the institution is expected from all concerned.
Covered individuals are expected to refrain from moving
business away from the institution or encouraging others to leave the institution, even after the covered individuals' have themselves left the institution.
Office rules on use or custody of electronic facilities and other assets of the institution shall be strictly observed by all concerned.
Sanction, Penalties
The institution reserves the right to impose corresponding
sanctions and/or penalties for violations of the “Code”, which includes dismissal from service without prejudice to further legal, administrative or criminal charges depending on the offense.
Specific Requirements of Law
From time to time, specific laws are implemented which require the special attention and strict observance by all concerned. All concerned, who shall be advised of such requirements, shall ensure their individual responsibilities are complied with.
Some specifics:
Bank Secrecy Act
Anti-Money Laundering Act
Customers Protection Act
(Approved by the Board of Directors per Resolution No.66-2007
dated 24 February 2007)
Related Party Transactions
The Bank, in compliance with legal and regulatory requirements, maintains transparency of related party transactions between and among the Bank and its subsidiaries,affiliated companies, directors, officers, stockholders, related interests (DOSRI), and joint ventures.
Dealings with Suppliers, Clients
and Business Partners
BDO employs high ethical standards
in its business dealings to ensure the
integrity of its employees and the
organization. The Bank does not allow
the acceptance, directly or indirectly,
of any gift, gratuity, favor, loan or any
item having monetary value or any
other form of compensation from
business partners, clients, suppliers and
other third party service providers in
connection with a service that may, in
any way, influence employees’ decisionmaking.
Corporate Social Responsibility
The Bank established the BDO Foundation Inc. as its corporate social responsibility (CSR) arm and channel for its internal and external outreach program. It aims to respond to the needs of the marginalized sector of society for decent shelter, sustainable livelihood and practical education.
As one of the highlights for the year, it donated land to the City of Taguig valued at P17 million for
site development. Partnering with Gawad Kalinga Foundation Inc., it aims to build the social infrastructure and community for the informal settlers in the area.
BDO Foundation also donated P12 million for the construction of a micro-finance center in Laguna for the CARD MRI (Center for Agriculture and Rural Development- Mutually Reinforcing Institutions) Development Institute. The partnership with CARD-MRI aims to train people on using micro-finance and livelihood skills to help them alleviate poverty and develop the economic potentials of the countryside.
On a smaller scale, it also donated P1.5 million to a school in Cebu for building an audio-visual room.
Recently, the Foundation donated P2.8 million to Gawad Kalinga for the building of 28 homes in Bulacan. The houses will be located in Blocks 4 and 5 of D’Dreamland Ville in Barangay Kaypian, San Jose del Monte City. These form part of a 3.2-hectare property owned by the Makati local government and will be called BDO Foundation-GK Community. The groundbreaking ceremony was held last May to mark the start of the construction.
In a move to integrate its CSR programs in the Bank’s business, it launched the BDO Volunteer Program, generating over six hundred employee sign-ups in its maiden year. The program, which is aligned to BDO’s mission and core values, aims to develop volunteerism as a BDO lifestyle.
The BDO Volunteer Program is divided into four basic activities: BDO Speakers Bureau, for conducting lecture series; BDO Skills Trainers, for facilitating arts and crafts training sessions; BDO Community Builders, for assistance in developing communities, and; BDO Fund Raisers for assistance in fund-raising to support the Foundation’s initiatives.
Ultimately, the Bank through BDO Foundation Inc. aims to be a major catalyst in the creation of opportunities for the under-privileged and in the country’s socio-economic development.
The Board has established seven
committees to assist it in shaping the
Bank’s corporate policies and practices,
and help ensure adherence to corporate
governance principles.
Executive Committee
Chairman: Teresita T. Sy
Members: Nestor V. Tan; Jesus A. Jacinto, Jr.; Josefina N. Tan; Antonio N. Cotoco; and Evelyn L. Villanueva
The Executive Committee acts on
behalf of the Board of Directors on
matters affecting the operations of
the Bank subject to such authorities
that may be imposed by the Board of
Directors. The committee, which meets
at least once a week, also assesses
the viability of credit and investment
proposals giving due consideration to
the credit risk involved and impact on
the Bank’s financials. Likewise, it has the authority to approve within set
limits projects or such other initiatives
for enhancing the Bank’s operating and
service delivery capabilities.
Board Audit Committee
Chairman: Teodoro B. Montecillo
(Independent)
Members: Corazon S. de la Paz-
Bernardo; Henry T. Sy, Jr.; Jimmy T.
Tang (Independent); and Christopher A.
Bell-Knight (member up to September
25, 2010)
Adviser: Shirley M. Sangalang
The Board Audit Committee provides
oversight of the Bank’s financial
reporting and control as well as
its internal and external audit and
compliance functions. It reviews and
assesses the Bank’s annual audit plan,
its system of internal controls and
regular financial and audit reports.
It evaluates strategic issues relating
to plans and policies, financial and
system controls, and methods of
operation, seeing to their adequacy and
pinpointing possible improvements.
As a continuing practice, the
following were extensively discussed
and consistently reviewed:
the scope and plan of internal and
external audit;
significant audit findings
including risk assessment and
evaluation of internal controls;
internal audit progress report and
monitoring of resolution findings;
report on compliance with
regulatory bodies and
management’s corresponding
action;
internal audit’s manpower
resources as well as its staff
proficiency improvement
programs;
annual audited financial
statements and the analysis of
quarterly results of operations;
new legal and regulatory
initiatives affecting the banking
industry and its impact on the
Bank’s operations; and
adherence to the Bank’s
Compliance Programs as required
by the Bangko Sentral ng
Pilipinas (BSP)
The committee, which meets at least
once a month, held 12 meetings in
2010. In addition, a special meeting on
“Sharing Best Practices” among all the
Board Audit Committees of BDO and
its subsidiaries was held on December
7, 2010.
Compensation Committee
Chairman: Teresita T. Sy
Members: Corazon S. de la Paz-
Bernardo; Josefina N. Tan;
and
Teodoro B. Montecillo
(Independent)
The Compensation Committee
provides oversight on directors’
compensation and remuneration of
senior management and other key
personnel, ensuring consistency of the
compensation policies and practices
with the corporate culture and strategy
of the Bank as well as industry
practices. The committee meets at least
once annually.
Corporate Governance
Chairman: Teodoro B. Montecillo
(Independent)
Members: Jesus A. Jacinto, Jr.; Jimmy
T. Tang (Independent); Antonio C. Pacis;
and Christopher A. Bell-Knight (member
up to September 25, 2010)
The Committee reviews and assesses
the Bank’s corporate governance
practices, and recommends the
applicable guidelines, monitors
compliance, and suggests
improvements to ensure effectiveness.
It provides oversight on the annual
performance self-evaluation of the
Board, its committees, and executive
management.
In 2010, the Committee accomplished
the following:
updated and enhanced BDO’s
Corporate Governance Manual,
a guide for the Bank’s business
and operations to be conducted
in accordance with the principles
and best practices of good
corporate governance.
improved the disclosures of the
Bank’s Corporate Governance
policies and practices using the
Scorecards of the Bangko Sentral
ng Pilipinas (BSP), Securities and
Exchange Commission (SEC) and
Institute of Corporate Directors
(ICD) Corporate Governance as
reference.
conducted the annual
performance evaluation of the
board, its committees and senior
management in compliance with
BSP Circular Nos. 456 and 592, as
well as with SEC Memorandum
Circular No. 2, Series of 2002.
The Committee, which meets four
times a year, conducted four meetings
in 2010.
Chairman: Henry T. Sy, Jr.
Members: Josefina N. Tan;
and Jimmy T. Tang (Independent)
oversight on the qualifications of all
nominees to the Board of Directors as
well as appointments to other Bank
positions requiring Board approval.
It recommends the nominees for
election to the Board of Directors of the
Bank during the annual stockholders’
meeting. In case of vacancy/ies in the
Board, the Committee seeks qualified
nominees and recommends them to the
Board for appointment. The Committee
held two meetings in 2010.
Risk Management Committee
Chairman: Nestor V. Tan
Members: Teodoro B. Montecillo
(Independent) and Christopher A.
Bell-Knight (member up to
September 25, 2010)
Adviser: Jesus G. Tirona
The Risk Management Committee is
responsible for policy development
and oversight of the Bank’s credit,
market and operating risk exposures.
It oversees the system of limits of
discretionary authority delegated by the
Board to management, ensuring that
the limits are observed and breaches,
if any, are immediately corrected.
It establishes the framework for
reporting risk to the Board including
the assessment of the probability and
potential impact of each identified risk
exposure to the Bank. Considering the
importance of credit risk, the Executive
Committee approves counter-party
credit risk under the guidance of
established policies, procedures, and
guidelines set by the Risk Management
Committee.
The Committee meets at least once a
month and held 11 meetings in 2010.
Trust Committee
Chairman: Josefina N. Tan
Members: Teresita T. Sy; Nestor V. Tan;
Antonio C. Pacis; and Ador A. Abrogena
The Trust Committee, acting within
the limits set by the Board of
Directors, is authorized to review
and approve transactions between
the Trust and Investments Group and fiduciary accounts, to accept and
close trust accounts, and to approve
the investment, reinvestment, and
disposition of funds or property. It
also evaluates trust accounts at least
once a year to determine compliance
with the instrument creating the trust
relationship, as well as the advisability
of retaining or disposing the trust
assets.
The Committee meets at least once
a month. It conducted 13 meetings in
2010.
The Board of Directors of BDO approved last April 2010 the establishment of a Social & Environmental Management Systems Policy (SEMS Policy). The BDO Environmental and Social Policy will ensure that environmental and social consciousness are incorporated in the day-to-day operations of the Bank for the benefit of all its stakeholders, employees, and the community in which it operates.
This policy mainly entails the categorization of all corporate borrowing accounts according to their social & environmental impact. Aside from this, it also has a provision that will limit the banks exposure to certain industries that have an adverse effect on human lives and the environment such as the manufacture and recycling of hazardous chemicals, ammunitions, etc. Depending on the risk categorization, various monitoring and reportorial procedures will be implemented to ensure that identified environmental and social issues concerning borrowing clients are addressed.
Risk Management
BDO constantly seeks to improve the maturity, robustness and relevance of its risk management framework and to promote enhanced risk management discipline across all its businesses and supporting functions. Given its size and scale, BDO faces varying and significant risks thus the need to ensure that potential risks are monitored, assessed and managed at
the appropriate level.
The Bank’s comprehensive credit risk assessment and meaningful credit policies allowed it to support various project finance endeavors and small business loans. It also streamlined its lending processes through the
development of a scorecard and credit policy initiatives, involving the delegation of authority to reduce processing time without compromising credit assessment and quality standards.
The Bank ensures that there is proactive management of risks arising from volatility in the financial markets using methodologies based on best market practices, which have been subjected to third party validation. It is also focused on compliance and risk efforts in anticipation of possible changes in prudential, supervisory and regulatory framework resulting from Basel 3.
It continues to practice prudence in its investments and actively monitors and regularly reviews related counterparty
credit risks and country risks.
The Bank’s operational risk
management is a dynamic process that
continues to be driven at the business
line level under strict guidelines and
reporting mechanisms. It ensured more
proactive management to its identified
operational risks with the continued
implementation of its risk assessment
processes.
In addition, operational risks arising
from health, safety and environmental
issues are appropriately managed
through policies and measures that
were integrated into the Bank’s day-today
operations.
The Bank established the Social
and Environmental Management
Systems (SEMS) Policy that will
ensure environmental and social
consciousness. This entailed the
assessment and categorization of
the environmental impact of the
Bank’s operations, and the proper
monitoring and compliance to local and
international environmental standards.
Accountability and Compliance
The Board and Management adhere to
the corporate governance principles
of accountability and compliance in
performing their legal obligations
and managing of financial reporting,
operational, and regulatory risks.
The Bank’s comprehensive credit risk assessment and meaningful credit policies allowed it to support various project finance endeavors and small business loans. It also streamlined its lending processes through the
development of a scorecard and credit policy initiatives, involving the delegation of authority to reduce processing time without compromising credit assessment and quality standards.
Internal Audit
The Bank’s Internal Audit Division
(IAD), under the direct supervision
of the Audit Committee, provides
independent, objective assurance and
consulting services designed to add
value and help improve the Bank’s
Internal Control Processes, such as
Financial Reporting, Information
Technology and Security, Operational
Controls, and to highlight the areas for
enhancing Operational Efficiency.
External Audit
On May 28, 2010, the stockholders
approved the re-appointment of
Punongbayan & Araullo, as external
auditor of BDO for the year 2010. The
Bank is compliant with the rotation
requirement of its external auditor’s
certifying partner as required under the
Securities Regulation Code (SRC) Rule
68 (3)(b)(iv).
Compliance
The Bank’s Compliance Office assists
senior management in managing
effectively the compliance risks
confronted by the Bank. Reporting
directly to the Board Audit Committee,
it oversees and coordinates the
implementation of the Bank’s
compliance program. This includes
the identification, monitoring and
controlling of compliance risk for the
whole Unibank including Hong Kong
Branch and its subsidiaries.
The Bank’s Compliance Office
updated the Bank’s Compliance
Program as required under BSP MORB
X180.1 and this was approved by the
Board on January 30, 2010.
Anti-Money Laundering Unit
Anti-Money Laundering Unit
The Anti-Money Laundering Unit
(AMLU), which reports directly to the Board Audit Committee, handles the
administration of the Bank’s compliance
with the Anti-Money Laundering Act
(AMLA) and its implementing rules and
regulations, monitoring of transactions
and conduct of AML training. It also
provides oversight to the Bank’s
subsidiaries and Hong Kong Branch on
their compliance with AML rules and
regulations.
Stakeholders' Interests
Investor Relations
The Bank observes best practices
and compliance in transparency and
information disclosure through active
communication and interaction with
investors and analysts in both the
equities and fixed income fields. It
participates in international investor
conferences as well as parent firm SM
Investments Corporation’s (SMIC)
quarterly briefings to keep investors,
analysts and the press appraised on
the Bank’s operations and other recent
developments.
Employee Programs
BDO’s commitment to good corporate
governance was evident in 2010
through the continuing training and
development of BDO employees from
new hirees, regular officers and staff, to
senior management and the Board of
Directors. Training programs covered
management development programs,
product orientations, compliance
training such as updates on Anti Money
Laundering (AML) and Corporate
Governance and behavioral courses.
The Board of Directors and Advisers
of the Bank and its subsidiaries and
selected senior management have
attended the seminar on Corporate
Governance. Among them are three (3)
Institute of Corporate Directors (ICD)
fellows, namely, Director Teodoro B.
Montecillo and Advisers Christopher A.
Bell-Knight and Jesus G. Tirona.
Customer Satisfaction Program
To determine customers’ satisfaction
and commitment level to BDO’s branch
banking, a Customer Satisfaction Survey
has been conducted in 2010 with above average nationwide satisfaction ratings
for the Bank’s branch network. Other
customer-related surveys conducted
in 2010, which also showed above
average ratings, covered the Phone
Banking, Mobile Banking, Auto and
Home Loan (Retail and Wholesale) and
UITF. These surveys were part of the
customer service quality monitoring
programs since 2008 to solicit the topof-
mind satisfaction levels of the Bank’s
customers.
Reporting and Transparency
Financial Reporting
The financial statements of BDO
Unibank Group and the financial
statements of the Parent Bank are
prepared in accordance with the
Financial Reporting Standards in the
Philippines (FRSP) for banks.
The financial statements are
presented in accordance with
Philippine Accounting Standards
(PAS) 1 (Revised 2007), Presentation
of Financial Statements. The BDO
Unibank Group presents the statement
of comprehensive income in two
statements: Statement of Income and
Statement of Comprehensive Income.
Two comparative periods are presented
for the statement of financial position
when BDO Unibank Group applies
an accounting policy retrospectively, makes retrospective restatement
of items in its financial statements,
or reclassifies items in the financial
statements.
Public Disclosure
The Bank is committed at all times to
fully disclose all material information
and other information required to be
presented by regulatory requirements
through its annual report and website
www.bdo.com.ph. (under “About Us/
Investor Relations”).
