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The Bangko Sentral ng Pilipinas approved on May 15, 2013 the regular cash dividend of P0.90 per share for the first semester of 2013 on the total outstanding common shares of the Bank. This will be payable to all common shares stockholders of record as of June 1, 2013 and distributable to the said stockholders on June 16, 2013.

Bank of the Philippine Islands continued to deliver sustainable growth as it reported a net income of P8.4 billion for the first quarter of 2013. This was 43% higher than last year’s P5.8 billion.

At the end of first quarter, BPI’s total resources were P940 billion, 16% higher year-on-year as deposits grew by the same rate to P748 billion. In addition, the Bank was able to increase its assets under management to P758 billion or 6% more than same period last year.

Net loans hit P514 billion, 19% better year-on-year. Lending to top corporates was up by 25%, while the middle market and SME segments went up by 17% and 14% respectively. Consumer loans also grew by 15%. Gross 30 days NPL ratio was down to 2.1% from last year’s 2.5%. Reserve cover was 129%.

The improvement in net income for the period was driven by the 21% growth in total revenues as the Bank took advantage of the favorable market condition to register securities trading gains. Net interest income was slightly up, as average asset base expanded by 15%. Net yields though, contracted as interest rates continued to decline.

Other non-interest income lines likewise improved, particularly service charges and commissions, trust fees, and corporate finance fees.

Operating costs reached P6.6 billion or 7% more year-on-year due to higher regulatory, technology, manpower, and variable costs. Impairment losses, however was down from last year.

BPI’s market capitalization as of end of March 2013 stood at P391 billion. Its Basel 2 Capital Adequacy Ratio (CAR) was 15.1%.

In its recently held Stockholders’ Meeting, leadership of BPI was turned over to its new President and CEO Mr. Cezar Consing. Outgoing President and CEO Mr. Aurelio R. Montinola III commented, “With a strong Team BPI, we are confident that BPI will continue to move forward with quality sustainable growth. I firmly believe that my successor, a competent and experienced professional with many years in the international banking arena, will further take the Bank to a new level and position BPI as one of the best Asean banks in the near future.”

During its regular meeting held on April 17, 2013, the Board of Directors of BPI declared a regular cash dividend of P0.90 per share for the first semester of the year 2013 on the total outstanding common shares of the bank. This will be payable to all common shares stockholders of BPI of record as of the 15th day from receipt of the approval by the Bangko Sentral ng Pilipinas of the said dividend declaration and distributable on the 15th day from said record date.

(a) The election/re-election of the following as Members of the Board of Directors of BPI for the term 2013-2014 and to hold office as such until their successors are duly elected and qualified:

1. Mr. Jaime Augusto Zobel de Ayala
2. Mr. Aurelio R. Montinola III
3. Mr. Fernando Zobel de Ayala
4. Mr. Romeo L. Bernardo
5. Ms. Chng Sok Hui
6. Mr. Cezar P. Consing
7. Mr. Octavio V. Espiritu
8. Ms. Rebecca G. Fernando
9. Mr. Solomon M. Hermosura
10. Mr. Khoo Teng Cheong
11. Mr. Xavier P. Loinaz
12. Ms. Mercedita S. Nolledo
13. CJ Artemio V. Panganiban
14. Mr. Antonio Jose U. Periquet
15. Mr. Oscar S. Reyes

Of the above elected directors, the following qualified and have been elected as independent directors as defined under the provision of SRC Rule 38 (Requirements on Nomination & Election of Independent Directors) of the Securities Regulation Code, as amended, to wit:

1. Mr. Romeo L. Bernardo
2. Mr. Octavio V. Espiritu
3. Mr. Xavier P. Loinaz
4. CJ Artemio V. Panganiban
5. Mr. Antonio Jose U. Periquet

(b) The re-appointment of Isla Lipana & Co. as the External Auditors of BPI for the year 2013.

Also, at the Organizational Meeting of the Board of Directors, following the said Stockholders’ Meeting, the following were elected/re-elected as Chairman and Officers of BPI for the term 2013-2014:

Jaime Augusto Zobel de Ayala - Chairman
Fernando Zobel de Ayala -Vice-Chairman
Cezar P. Consing -President
Antonio V. Paner -Treasurer
Carlos B. Aquino -Corporate Secretary
Santiago L. Garcia, Jr. -Asst. Corp. Secretary

Further, at the same Organizational Meeting of the Board of Directors, the following Committees were reconstituted:

I. Executive Committee

1. Jaime Augusto Zobel de Ayala -Chairman
2. Fernando Zobel de Ayala -Vice-Chairman
3. Cezar P. Consing-Member/President
4. Aurelio R. Montinola III-Member
5. Rebecca G. Fernando-Member
6. Antonio Jose U. Periquet-Member (Independent)
7. Chng Sok Hui -Member

Mercedita S. Nolledo - Alternate for JAZA & FZA

II. Audit Committee

1. Xavier P. Loinaz -Chairman (Independent)
2. Octavio V. Espiritu - Member (Independent)
3. Khoo Teng Cheong - Member
4. Aurelio R. Montinola III - Member
5. Oscar S. Reyes - Member

III. Risk Management Committee

1. Octavio V. Espiritu - Chairman (Independent)
2. Cezar P. Consing - Member/President
3. Romeo L. Bernard - Member (Independent)
4. Khoo Teng Cheon-Member
5. Aurelio R. Montinola III - Member
6. Antonio Jose U. Periquet - Member

IV. Trust Committee

1. Mercedita S. Nolledo - Chairman
2. Antonio Jose U. Periquet - Vice-Chairman (Independent)
3. Cezar P. Consing - Member/President
4. Romeo L. Bernardo - Member (Independent)
5. Rebecca G. Fernando - Member
6. Maria Theresa M. Javier - Member/Trust Officer
7. Aurelio R. Montinola III - Member
8. Fernando Zobel de Ayala - Member

V. Personnel and Compensation Committee

1. Fernando Zobel de Ayala - Chairman
2. Romeo L. Bernardo - Member (Independent)
3. Aurelio R. Montinola III - Member
4. Oscar S. Reyes - Member
5. Chng Sok Hui - Member

VI. Corporate Governance Committee

1. CJ Artemio V. Panganiban - Chairman (Independent)
2. Romeo L. Bernardo - Member (Independent)
3. Mercedita S. Nolledo - Member
4. Oscar S. Reyes - Member
5. Chng Sok Hui - Member
6. Solomon M. Hermosura - Member

VII. Nomination Committee

1. Romeo L. Bernardo - Chairman (Independent)
2. Jaime Augusto Zobel de Ayala - Member
3. Solomon M. Hermosura - Member
4. Xavier P. Loinaz - Member (Independent)
5. Chng Sok Hui - Member

VIII. Retirement/Pension Committee

1. Mercedita S. Nolledo - Chairman
2. Cezar P. Consing - Member/President
3. Rebecca G. Fernando - Member
4. Fidelina A. Corcuera - Member

IX. Credit Committee

1. Cezar P. Consing - Chairman/President
2. Alfonso L. Salcedo, Jr. - Vice-Chairman
3. Joseph Anthony M. Alonso - Member
4. Reymundo S. L. Castro - Member
5. Mario B. Palou - Member
6. Angela C. Santiano - Member
7. Judy K. Tecson - Member

BPI's Annual Stockholders' Meeting will be held on April 18, 2013, Thursday at 9:00 A.M. at the Ballroom 2, Fairmont Makati, 1 Raffles Drive, Makati Avenue, Makati City for the transaction of the following business:

1. Calling of meeting to order.
2. Certification of notice.
3. Determination and declaration of quorum.
4. Approval of the minutes of the annual meeting of the stockholders on April 19, 2012
5. Reading of Annual Report and approval of the Bank’s Financial Statements as of December 31, 2012 incorporated in the Annual Report.
6. Approval and confirmation of all acts during the past year of the Board of Directors, Executive Committee, and all other Board and Management Committees and Officers of BPI.
7. Election of 15 members of the Board of Directors.
8. Election of External Auditors and fixing their remuneration.
9. Other matters.

Only stockholders of record as of March 19, 2013 will be entitled to notice and to vote at this meeting. The Stock and Transfer Book of BPI will be closed from March 19, 2013 to April 17, 2013 for this purpose and in accordance with Article XII of the Bank’s Amended By-Laws.

The Bank of the Philippine Islands (BPI) posted strong business volume and revenue growth in 2012 as the Philippines likewise grew at a faster pace compared to other Asean economies. BPI’s unaudited net income for full year 2012 reached P16.3 billion, a 27% increase over the P12.8 billion posted in 2011. This translated to a Return on Equity of 17.5% and a Return on Assets of 1.9%.

Total resources reached P985 billion or 17% higher than the previous year as the Bank’s core businesses remained solid. Deposits expanded by a healthy 18% to P802 billion while assets under management was P743 billion or 11% higher, bringing total intermediated funds to P1.5 trillion.

The net loan portfolio increased by 16% to P527 billion as all markets sustained double digit growths: 17% for both the consumer segment and the middle market/SMEs, and 12% for the top tier corporates. Asset quality continued to improve with its 30-day NPL ratio down to 1.46% from last year’s 1.87%.

Net interest income rose by 6% as the average asset base went up by P64 billion. Net interest margin had a slight 10 bps contraction as spreads were challenged following the 100 bps cut in policy rates last year as well as the non remuneration of banks’ reserve requirement deposits with the BSP.

Non-interest income was 25% better mainly due to higher trading gain on securities sold, other operating income, and fees & commissions.

Operating expense growth was managed at 6% coming from technology and occupancy related expenses and regulatory costs. Impairment losses were at P2.9 billion due to additional provisions for non credit related items and foreclosed assets.

BPI’s market capitalization was at P338 billion as of end 2012. The Bank remains adequately capitalized with a Basel II Capital Adequacy Ratio (CAR) of 14.2% and Tier 1 CAR of 12.8%.

BPI President and CEO Aurelio R. Montinola III commented, “2012 was a banner year for BPI, as we generated record profits and exceeded our return on equity goal of 16%. We will aim for 12 to 15% loan growth in 2013. However, given significant securities trading gains last year and an even lower interest rate regime this year, our challenge for 2013 will be to deliver a meaningful earnings growth after a record 2012 performance.”

The Board of Directors of the Bank of the Philippine Islands, in its December 12, 2012 meeting, approved the holding of BPI's Annual Stockholders' Meeting for the year 2013 on April 18, 2013 at 9:00 A.M. at the Grand Ballroom, Hotel Intercontinental, Makati City.

The Board also approved that all nominations to the Board of Directors of BPI for the year 2013 together with the written acceptance of all the nominees must be received and acknowledged by the Office of the Corporate Secretary of BPI not later than end of business hours of January 31, 2013.

The Stock and Transfer Book of BPI will be closed starting March 19, 2013 to April 17, 2013. Accordingly, only stockholders of record as of March 19, 2013 will be entitled to notice and to vote at said meeting.