Leveraging strategic choices, reaping early wins

1. Leveraging strategic choices, reaping early wins Media & Investor Briefing on Q1 2009 Results 12 May 2009 PSE Ayala Boardroom

2. Leveraging strategic choices, reaping early wins Mr. Justo Ortiz Chairman & CEO

3. Early wins Net income position in Q1 2009 signifies dissipating compression on improvement in non-interest revenue component Non-interest income (in million pesos) Net income (in million pesos) 31% 6% Net trading & investment gains (in million pesos) 17%

4. Early wins Combined growth in interest & non-interest income contributed to strengthen overall revenue stream Operating income (in million pesos) Interest income (in million pesos) +21% +43% +49%

5. Healthy margins Net interest margins remained favorable amid a low interest rate environment

6. Focus on long-term growth Operating expenses increased as a result of growing transaction volumes & investments in long-term productivity improvement Operating expenses (in million pesos) 29%

7. Persistent deposit increase Deposit surge persisted amid the global financial turmoil Outstanding deposits (in billion pesos) 57%

8. Consistent credit growth Improvement in recurrent income supported by broad-based loan expansion Outstanding loan portfolio (gross, without BP) 59.2 +30% 45.4 +35% +10% +28% +21% Amounts in Billion Pesos

9. Strong asset quality Improving credit quality proves formidable risk management approach Net non-performing loans* *NPLs net of reserves; Loans net of IBCL

10. Gearing up for balance sheet expansion CAR decline attributed to rise in risk-weighted assets

11. Looking to the upswing

12. Anchoring on our strategic imperatives • Solid profitability through improved recurrent income • Healthy interest margins • Asset quality preservation • Customer franchise expansion Resilient strategy framework • Commitment to exceptional customer satisfaction and loyalty • Brand values of expertise, relevance, and challenging convention Re-energized brand • Adherence to governance principles of transparency and sound risk management • Disciplined approach to pricing risk factors in support of a more aggressive lending posture Risk-adjusted returns • Acceleration in deposit base through improved sales management and product development systems • Excellence in service quality and leading edge in innovation Robust resource base • Emphasis on more sustainable revenue sources through expansion in loans & securities • Broadening market reach with strong bias for quality borrowers Resurgent loan & securities

13. Sustaining strong depositor confidence Mr. Edwin Bautista EVP, Retail Banking

14. Performance guideposts How we sustained our growth path… • Superior sales management system • Robust product management process • Excellence in service quality and efficiency • Constant quest for innovation

15. Built for success Customer expertise produced stronger foothold in deposit-gathering business Outstanding deposits (in billion pesos) 57% y-o-y

16. Built for success Outstanding deposits (in billion pesos) P179.0 B as of April

17. Forging ahead

18. Capitalizing on strong corporate franchise Ms. Guia Lim EVP, Corporate Banking

19. Performance results • Strong loan growth • Loans are to quality names • Industries are diversified • Pricing more competitive but asset quality, good • Loan portfolio largely in peso, hence not vulnerable to foreign funding • Accrual income steadily growing • No loan deterioration

20. Built for success Asset growth Gross corporate loans (in billion pesos) 60%

21. Built for success Revenue growth Interest income (in million pesos) 103%

22. Built for success Diversified borrowers Others Telecommunications Transport, Storage & Communication Manufacturing Real estate Electricity, Gas & Water Supply Financial intermediation % Share of corporate portfolio, as of Mar 2009

23. Moving forward

24. Reinforcing middle market credit quality Ms. Betty Romulo EVP, Commercial Banking

25. Performance guideposts How we sustained our growth path… • Credit risk consciousness balanced with profitable pricing • Innovation in products and services • Diversification in loan portfolio

26. Built for success Steady climb in commercial credit portfolio guided by firm standards of credit quality Gross commercial loans (in billion pesos) 9%

27. Built for success Principle of risk-adjusted returns enabled strong acceleration of interest income Interest income (in million pesos) 33%

28. Built for success Decline in past due loans illustrate commitment to strong middle market credit quality Past due ratio

29. Built for success Portfolio diversification remains a key risk management principle Others Manufacturing SME Financial intermediation Trading Real estate % Share of commercial portfolio, as of Mar

30. Forging ahead

31. Solidifying consumer finance growth Mr. Genju Lapez EVP, Consumer Finance

32. Performance guideposts How we sustained our growth path… • Balance between aggressive marketing strategies and cost efficiency • Broad market reach via new geographies and channels • Prudence and discipline in market expansion • Collaboration and alliances

33. Built for success Innovative marketing strategies, in the face of challenging market conditions, sustained growth in consumer finance Gross consumer loans (in billion pesos) 19%

34. Built for success Robust growth balanced with stable yields kept revenue trend on a consistent growth track Interest income (Consolidated consumer finance, in million pesos) 14%

35. Built for success Improvement in net past due ratio reflective of focus on both value and quality of credit portfolio Net past due ratio

36. Forging ahead

37. Leveraging strategic choices, reaping early wins Media & Investor Briefing on Q1 2009 Results 12 May 2009 PSE Ayala Boardroom