OSIAS COLLEGES INC.
F. Tanedo St. San Nicolas, Tarlac City
Tel. No. 045-982-02-45
Submitted to
MA’AM MARIA BLANCA GONZALEZ
For the subject
FM3: BANKING AND FINANCE INST.
Submitted by
TOPIA, DEVY MAR
APRIL 2024
COMPANY PROFILE
Bank of Commerce, a universal bank licensed by the Bangko Sentral ng Pilipinas (“BSP”), traces
its origins to the Overseas Bank of Manila, established in Binondo, Manila in 1963. In 2008, San
Miguel Corporation (“SMC”) bought into the Bank and became a major stakeholder through the
voting stake of San Miguel Properties, Inc. in the Bank. In December 2020, the Intellectual
Property Office (IPO) granted the copyright license for “BankCom” as the Bank’s official short
name.
The Bank provides innovative banking solutions and a complete range of products and services
in deposit, commercial loans, credit card services, consumer banking, transaction banking,
corporate banking, investment banking, treasury, asset management, trust and investments. In
terms of service reach, the Bank has retail and corporate online banking facilities, 140 branches
and 259 automated teller machines (“ATMs”) strategically located nationwide as of 31 December
2022.
Universal Banking License Application
In November 2022, the Monetary Board of the BSP conferred on the Bank the authority to
operate as a universal bank. With a universal banking license, the Bank will have more
opportunities to generate and warehouse interest bearing assets like marketable securities,
generate more fee-based income, and manage risk of securities underwritten and held for trading.
This will also enable the Bank to enhance its marketing relationship with existing and
prospective clients in the large corporate and middle market segments as it will be carrying a
broader range of products, from traditional working capital lines and term loans to project
finance, initial public offerings, mergers and acquisitions, financial advisory, etc. The latter
services are essential to large businesses in planning their expansion programs as a response to
the increasing demand brought about by the robust economy.
HISTORY
BankCom has been operating since December 1963 and traces its origins to Overseas Bank of
Manila with headquarters in Binondo, Manila. The bank has since evolved through different
phases of growth. In 1980, Overseas Bank of Manila changed its name to Commercial Bank of
Manila (ComBank). The following year, the Government Service Insurance System (GSIS)
acquired ComBank. In 1984, ComBank acquired Royal Savings Bank. Bank of Boston, one of
the oldest and leading banks in the United States together with a local investment group acquired
ComBank in 1988. The bank was then renamed Boston Bank of the Philippines.
In November 1991, the bank changed its official name to Bank of Commerce. With the buyout of
Bank of Boston's majority interest in 1993, Bank of Commerce was placed under complete
Filipino ownership. As part of its growth plans, Bank of Commerce acquired Pan Asia Bank and
purchased selected assets and liabilities of Trader’s Royal Bank in 2001. These takeovers
significantly increased the Bank’s presence in the banking industry.
In 2008, San Miguel Properties, Inc., a subsidiary of San Miguel Corporation (SMC), and San
Miguel Corporation Retirement Fund, the registered retirement plan of SMC Group employees,
became the controlling shareholders of Bank of Commerce.
In 2016, Bank of Commerce unveiled its new tagline “WE THINK CUSTOMERS”
encapsulating the Bank’s Service Promise. In 2018, the new Bank of Commerce logo included
the San Miguel Corporation affiliate text. In 2020, BankCom — the Bank’s official short name
with copyright license from the Intellectual Property Office (IPO) was granted. In 2021, BSP
approved the universal banking license subject to an Initial Public Offering (IPO).
ABOUT THE BANK
Vision
Provider of exceptional financial services and solutions connecting consumer and business
ecosystems that contribute to building the nation.
Mission
Our mission is to deliver excellent banking experiences through competent and attentive
professionals who put customers’ needs first.
Service Promise
With integrity and financial stability, we commit to deliver superior service to you, our
discerning customers. Through competent and warm professionals who understand, anticipate,
and fulfill your needs with a sense of urgency in a safe and guest-friendly environment, we
promise you a meaningful banking experience.
NET INCOME FIGURES
The provided net income figures for the years 2020, 2021, and 2022 show a significant increase
over time:
1. **2020 – P784,433,788**: This represents the net income for the year 2020. It’s a substantial
figure, indicating a healthy financial performance for that year.
2. **2021 – P1,206,619,165**: The net income increased notably in 2021 compared to 2020,
indicating a significant improvement in financial performance.
3. **2022 – P1,800,068,600**: The net income continued to increase in 2022, surpassing both
the 2020 and 2021 figures. This demonstrates sustained growth and profitability over the
years.
This trend of increasing net income year over year suggests positive business growth, improved
efficiency, increased sales, or better cost management strategies. It reflects positively on the
company’s financial health and performance, potentially indicating successful business
strategies, market demand for its products or services, or favorable economic conditions.
It’s important for stakeholders, including investors, management, and analysts, to analyze the
underlying factors driving this growth to ensure its sustainability and identify areas for further
improvement. Additionally, it’s essential to consider external factors such as market trends,
competition, regulatory changes, and economic conditions that may impact future performance.
CORPORATE SOCIAL RESPONSIBILITY
The Bank not only prioritizes its financial performance, but also focuses on making meaningful
contributions to the development of the nation and welfare of the larger society. The Bank’s
Corporate Social Responsibility (CSR) efforts are geared toward fulfilling its long-standing
commitment to community development, promoting financial literacy, and championing
volunteer work.
All these initiatives are also made possible by the firm commitment shown by highly regarded
corporate partners and non-governmental organizations in rendering initial assistance, as well as
sustaining the efforts that had been started in the communities. From organizing relief operations
to expanding the delivery of essential services, the Bank’s CSR initiatives reflected its dedication
to active community participation with the aim of uplifting the lives of the people it serves. Past
activities include:
2022 Meal-packing Event with International
Care Ministries (ICM). With volunteers finishing to pack 75 boxes in just two hours, this was one
of the most highly energized and inspired CSR initiatives that exceeded attendance expectations.
Employee donations reached a total of P106,900.00. This activity resulted in fewer families
going hungry during the Christmas season and during the course of the Transform and Family
Academy programs with our partners International Care Ministries and Rise Against Hunger
Philippines
Better World Tondo Food-feeding Day.
In support of SMFI’s community center Better World Tondo (BWT), BankCom held an early
Christmas Party for more than 60 beneficiary kids with games, food, and gifts. BWT is a center
for learning and livelihood for families in Manila and a food bank which plans to serve at least
one million meals each year to children in Tondo, Manila for the next 10 years. BankCom
employees volunteered to set up the venue with Christmas decorations using recycled materials.
They also cooked and served lunch meals, conducted a wide range of relay and parlor games,
and distributed gift packs with assorted SMC food products. The gathering was the first post-
pandemic event that gave the kids the chance to experience a Christmas party and engage in
friendly competition with exciting prizes.
Awesome Pawsome Day with Team Malasakit and Animal Kingdom Foundation.
From tree-planting to animal welfare, BankCom supported malasakit for nature initiatives as
employees joined SMFI’s CSR activity called Awesome Pawsome Day. In partnership with
Animal Kingdom Foundation (AKF), BankCom volunteers from Trust Services Group and
Human Resource Management and Development Division visited the Animal Kingdom Center in
Capas, Tarlac to conduct feeding, cleaning, bathing, and dog socialization activities. The two-
hectare property devoted to animal rescue and rehabilitation has 17 kennels with 20 to 25 dogs
per each kennel. AKF is a non-profit organization devoted to eliminating cruel and abusive
practices against animals. SMFI is AKF’s partner organization in the retrieval, rehabilitation, and
rehoming of more than hundreds of abandoned dogs and cats in Taliptip, Bulakan, Bulacan.
BankCom also implemented a successful four part Financial Literacy Program with relocatees
and local residents from the same area.
Masungi Georeserve Tree-Planting Activity.
This was part of our “malasakit“ for nature initiatives targeting the Masungi Georeserve at the
Upper Marikina River Basin Protected Landscape. With a combined total of 102 planted
seedlings varying from species acacia mangium, narra, maraluhat, ipil-ipil, and mango sinora,
BankCom employees contributed to the reforestation efforts of Masungi Georeserve.
CSR Day in Leyte.
Eastern Visayas Area’s Ormoc and Tacloban Branches collaborated on diverse CSR malasakit
programs benefiting the town of Brgy. Buho, Tabango, Leyte. In collaboration with the Kiwanis
Club of Geo, Ormoc (KCGO) and Kiwanis Club of Sulhog, Tacloban (KCST), branch officers
and staff with third-party service providers, headed by Ormoc and Tacloban Branch Managers
and KCGO President, led in providing assistance to hundreds of families through the distribution
of slippers, handing out of school supplies and hygiene kits, food-feeding and giving out of
fruits, and donating of cash gifts to the youth.
2022 International Coastal Cleanup.
BankCom joined local and international volunteers at the Manila Bay coastline during the
International Coastal Cleanup Day on September 17, 2022. Bank volunteers gathered at the Las
Pinas- Parañaque Critical Habitat and Ecotourism Area (LPPCHEA) or Las Pinas- Paranaque
Wetland Park together with SMFI and SMC subsidiaries and affiliates to be part of this global
movement. The volunteers contributed to minimizing the massive amount of pollution in the
Manila Bay area. With their participation, SMC managed to collect 14,500 kilograms of trash
nationwide, together with 1,200 SMC volunteers in other locations. The documented and
segregated trash collected by every volunteer would help to identify ways and means to eliminate
ocean trash. This CSR activity was organized by the Department of Environment and Natural
Resources (DENR).
BankCom Financial Literacy Program in Bulacan.
BankCom’s Consumer Protection Department held its Financial Literacy (FinLit) Program at
Barangay Taliptip in the municipality of Bulakan, Bulacan province. The BankCom FinLit
program focused on the concept of savings through various bank products, the factors to consider
before borrowing money, and the importance of online banking. Besides the main learning
session, a set of games was conducted to determine the participants’ understanding of the
lessons and its practical application to their day-to-day financial requirements. The FinLit
Program was designed to provide guidance on the financial goals of the fishing communities
which had ventured into sustainable mushroom farming in line with the CSR program of San
Miguel Aerocity, Inc. (SMAI) within the scope of the Aerocity development.
Masungi Georeserve Scholarship Program.
Recognizing the need of the education sector to continue with their operations despite the
pandemic, the Bank partnered with Masungi Georeserve to initiate a scholarship program for
select students in nearby schools in Baras, Rizal. The Bank provided financial support and
organized a donation among employees to collect cash or in-kind donations for the
purchase of school items for student beneficiaries.
SHAREHOLDERS
1. SMC EQUIVEST CORPORATION – 26.65%
2. SAN MIGUEL PROPERTIES, INC. – 24.60 %
3. SAN MIGUEL CORP RETIREMENT PLAN – 23.77%
4. PCD NOMINEE CORPORATION (Non Filipino) – 8.26%
5. PCD NOMINEE CORPORATION (Filipino ) – 7.12 %
6. CARITAS HEALTH SHIELD, INC. – 6.03
7. ALEXCORP PROFITS LIMITED – 0.81
This ownership structure indicates that San Miguel Corporation is the dominant shareholder in
the Bank of Commerce, with its subsidiaries, San Miguel Properties Incorporated and San
Miguel Corporation Retirement Plan, SMC Equivest Corporation.
San Miguel Corporation, together with its subsidiaries, is one of the largest and most diversified
conglomerates in the Philippines by revenues and total assets—with sales equivalent to
approximately 6.8% of the Philippine GDP in 2022.
Originally founded in 1890 as a single product brewery in the Philippines, SMC today owns
market-leading businesses and investments in various sectors, including food and beverage,
packaging, energy, fuel and oil, infrastructure, cement, property and banking services. SMC has a
portfolio of companies that is tightly interwoven into the economic fabric of the Philippines,
benefiting from, as well as contributing to the development and economic progress of the
country.
BOARD OF DIRECTORS
Amb. Francis C. Chua has been a member of the Board of Directors of the Bank since 20 May
2008, sat as Vice Chairman from 2013 to 2022, and became Chairman effective on 16 February
2022. Mr. Chua used to chair the Executive Committee (ExCom) of the Bank when he was Vice
Chairman of the Board. With his constant feedback and insights on best banking practices, he has
been instrumental in promoting the Bank in the business community and in marketing its
products and services.
Ms. Benedicta A. Du-Baladad has been a member of the Board of Directors of the Bank since 31
January 2014. She is the Vice Chairperson of the Board of Directors, Chairperson of the
Executive Committee and a member of the Audit Committee. She was previously a member of
the Bank’s Board Risk Oversight Committee (BROC) from 2014-2017. She is the Founding
Partner and CEO of Du-Baladad and Associates (BDB Law), a law firm specializing in taxation
and related corporate services. Ms. Du-Baladad has over 30 years of practice in the field of
taxation, 17 years of which were spent with The Bureau of Internal Revenue (BIR) working on
tax administration policy development and in operations.
Mr. Michelangelo R. Aguilar was elected member of the Board of Directors and appointed
President and Chief Executive Officer (CEO) of the Bank on 16 July 2018. He is a member of
the Bank’s Executive Committee (ExCom), Trust and Investment Committee (TIC), and
Underwriting Committee (UW), and used to be a member of the Information Technology
Steering Committee (ITSC). Mr. Aguilar has over 39 years of banking experience in The areas of
Corporate and Investment Banking, Global Markets and Treasury. He has 22 years of experience
with International banks starting his career as an Executive Trainee at Citibank Philippines and
rising through the ranks in the areas of Banking Operations, Treasury and Sovereign Risk as
Assistant Manager, Manager, and Assistant Vice President.
BUSINESS MODEL
Product Range and Revenue Sources BankCom provides innovative banking solutions and a
complete range of products and services in deposit, commercial loans, credit card services,
consumer banking, transaction banking, corporate banking, treasury, investment banking, asset
management, and trust and investments.
Loans
BankCom extends loans and other credit facilities to corporate institutional, and middle market
clients to support their working capital and/or capital expenditure requirements.
Corporate lending may be in the form of term loans, credit lines, or project finance. The target
market is divided into:
• Ecosystem acounts - suppliers/providers, dealers, and distributors
• Non-ecosystem - conglomerate, large corporations, and strong middle market
BankCom also provides home, automobile, and salary loans for individual customers around the
country. The Bank maintains partnerships with real estate developers as well as automobile
dealers through its account officers to capture the market.
Branch-Based Transactions
With a network of 140 branches, BankCom provides a consistent and comprehensive financial
experience for its affluent and middle-market customers, while extending dependable access to
basic banking services to the mass segment.
For financial consumers who transact with merchants or other customers, these branches service
their deposits to fund their personal or operating accounts, facilitate withdrawal through over-
the-counter or onsite ATMs, accept check clearing and encashment, and fulfill various account-
related requests.
BankCom also services the needs of business customers through its check releasing counters,
deposit pickup facilities, and account maintenance for auto-credit and auto-debit arrangements
performed by branches.For customers who aim for a higher return on their funds, these branches
offer not only time deposits and but also various investment products from BankCom’s other
business units.
Depending on the type of product, BankCom pays interest and credits it to the customers’
account at certain periods, thereby incurring interest expense. The pool of funds generated from
these accounts is then used to support the Bank’s lending and investing activities.
Electronic Banking Transactions
BankCom’s electronic banking channels consist of a mobile app and online banking channel
designed for retail or individual customers, i.e., BankCom [Personal], a web-based channel
specially made for corporate or institutional accounts, i.e., BankCom [Corporate], ATMs (and
soon, Cash Recycling Machines or CRMs), and point-of-sale (POS) terminals.
For retail transactions such as Instapay and PESONet fund transfer, as well as acquirer-based
ATM withdrawals and balance inquiries, the Bank earns fee revenues net of agreed sharing with
the external partner (e.g., BancNet). On the other hand, for corporate transactions delivered
through cash management services, the revenue may be generated through fees entirely, through
float from the required deposit ADB, or a combination of both.
Treasury
BankCom’s treasury business covers money market, trading and treasury services, foreign
exchange, as well as management of the Bank’s funding operations by use of treasury bills,
government securities and placements and acceptances with other banks. The Bank earns net
interest income and non-interest income from this business.
Trade Finance
BankCom’s trade finance business caters to the needs of customers requiring guarantees to
secure ordered goods through standby letters of credit (SBLCs). Distributors and merchants
whose businesses are based on consumer demand are among the target customer segments. The
Bank earns fee revenue from the asset and foreign exchange flows generated by this business.
Remittance
Aside from cash management, trade finance, and digital channels, BankCom manages a
remittance business within the purview of transaction banking. BankCom develops and manages
tie-ups with various partners to facilitate remittances from overseas Filipino workers (OFWs)
mostly from the Middle East. To support this business, BankCom will continue to develop the
BankCom SikapPinoy Debit Card and SikapPinoy Asenso program. SikapPinoy Asenso is an all-
in-one service to help OFWs and their families handle their hard-earned money in the most
convenient, secure, and smart way possible towards establishing a business of their own.
Credit Card and Debit Card Marketing
BankCom’s credit card product is a revolving loan facility that is offered to clients and applicants
that meet certain acceptance criteria. On the other hand, the debit card device is a feature of
certain BankCom deposit account products.
The Bank rolls out various marketing activities to promote use of its debit card and credit card
products. To support this, the Bank maintains relationships with various establishments (i.e.,
merchants). Purchases made using these card products generate billings and usage transactions
which earn fee revenues. CCG also to promote the usage of the Bank’s card products.
Trust Services
BankCom’s trust and fiduciary management arm is responsible for developing new business,
account solicitation, and administration of personal and corporate investment accounts under the
scope of trust, other fiduciary business, and investment management activities specifically
licensed by the BSP. Through its Trust Services business, such as asset management activities
performed in its capacity as Trustee or Investment Manager under local regulations, the Bank is
able to generate assets under management to realize its growth objectives, and earn trust fee
revenues.
Investment Banking
As a universal bank, BankCom engages in and offers investment banking products and services
to capitalize on its retail (investors) and corporate (issuers and investors) client base and
extensive distribution capabilities from its branch network and established Treasury and Trust
businesses. These include but are not limited to: (i) managing, underwriting, and arranging to
distribute equity and debt securities; and (ii) providing financial advisory services across various
mandates including mergers and acquisitions and capital raising. BankCom has been actively
participating in capital market transactions thereby generating fee revenues and cross-sell
opportunities with its Trust and Treasury Groups.
AWARDS AND ECOGNITIONS
BANKCOM BAGS 2 AWARDS AT 17TH ANNUAL BEST DEAL AND SOLUTION
AWARDS 2023 HOMENEWSBANKCOM BAGS 2 AWARDS AT 17TH ANNUAL BEST
DEAL AND SOLUTION AWARDS 2023
March 5, 2024
San Miguel Corporation (SMC) affiliate Bank of Commerce (BankCom) bagged two prestigious
awards at the 17th Annual Best Deal and Solution Awards 2023 hosted by prominent Hong
Kong-based institutional investment publication, Alpha Southeast Asia.
BANKCOM RECOGNIZED AS ONE OF MANDALUYONG CITY’S TOP TAXPAYERS
FOR 2023 HOMENEWSBANKCOM RECOGNIZED AS ONE OF MANDALUYONG
CITY’S TOP TAXPAYERS FOR 2023
February 20, 2024
San Miguel Corporation affiliate Bank of Commerce (BankCom) has been honored as one of
Mandaluyong City’s top 10 taxpayers for 2023 during the city’s 79th Liberation Day and 29th
Cityhood Anniversary celebration held on February 7, 2024, at the Wack Wack Golf and Country
Club.
The universal bank received this recognition, along with parent company San Miguel
Corporation, based on the official list provided by Mandaluyong City’s Business Permit and
Licensing Department. The Bank’s commitment to fulfilling its tax obligations has made it a vital
contributor to the city’s economic growth and progress.
BANKCOM RECEIVES MOST OUTSTANDING AWARD FROM CMAP
HOMENEWSBANKCOM RECEIVES MOST OUTSTANDING AWARD FROM CMAP
May 20, 2022
The Credit Management Association of the Philippines (CMAP) has recently bestowed the Most
Outstanding Member Award to BankCom through our representative, Credit Investigation
Department Head Eugene F. Mercado.
Competing against more than 50 members of CMAP from the banking, trading, financial
services, manufacturing and real estate industries, the top prize was announced during CMAP’s
40th National Credit Congress following the criteria on financial responsibility and corporate
standing. CMAP is the country’s premier credit management institution with 419 member
companies in the Philippines.
BANK OF COMMERCE RECEIVES BEST REBRANDING PROGRAM
HOMENEWSBANK OF COMMERCE RECEIVES BEST REBRANDING PROGRAM
May 1, 2016
Bank of Commerce receives Best Rebranding Program Bank of Commerce, one of the country’s
progressive banks, was recently given the Best Rebranding Program award at the 23rd Asian
Cards User Conference in Xian, China, for the launch of its Bank of Commerce MasterCard
credit card. The annual event was organized by Worldline, a global leader in the payments and
transactions systems industry. The award was given after the Bank’s integration of the Ascend
Card System, which allows for value-added services such as balance transfer, multiple rewards
points awarding and installment features. Present during the awarding ceremony were (from
left): Worldline Customer Service Manager Yamuna Peter; Head of Managed Card Services
Julianna Teong; Sales Director – South East Asia Business Jennifer Cheah; Asia Pacific CEO Tee
Kee Ming; and Bank of Commerce CEO and President Roberto C. Benares; SVP – Division
Head of Product Development, Marketing Services and Credit Card Anna Marie A. Cruz; and
VP-Department Head of Credit Card Unit Andrew D. Cajucom.
