College of Business Administration

Group project FINANCIAL MANAGEMENT

Comparative Analysis of Products of Financial Institutions

VS.

Submitted by:

GROUP 2
Co, Korina Sofia De Lima, Jemmalyn Dolar, Nolan Jerome Esquivel, Sheilla May Lorenzo, Angel Joy Pang-an, Sandra Ann Roxas, Joana Marie Santos, Michael

Submitted to:

Prof. Jamerlan
March 18, 2011

ACKNOWLEDGEMENT

TABLE OF CONTENTS

I. II.

Introduction The Researchers

a. Brief Biographical Sketch of each Researchers b. Description of the individual/group experience in doing the research

III.

Profile
a. Company b. Resource Person

IV. V. VI.

Services / Products Offered Previous Years Trend in Product Sales Comparison of the two Optimum Products Appendices

a. Brochures / Letters / etc b. Pictures of the Research Process(before / during / after)

III.

PROFILE

a. Company Name: PHILIPPINE NATIONAL BANK

Description:  PNB is one of the largest banks in the Philippines, ranking fourth in terms of assets. It was established by the Philippine government on July 22, 1916, during the American colonial period, and became the first universal bank in the Philippines in 1980. It was privatized in 1989. PNB currently has over 100 branches throughout Asia, Europe, the Middle East and North America.

b. RESOURCE PERSON: Name: RHODERICK P. GUTIERREZ PNB, PGH Compound, Taft Avenue Sales and Service Head

Educational Background: College: Bachelor of Accountancy Polytechnic University of the Philippines Sta. Mesa, Manila Date graduated: March 1992

Work Experiences:
April 1993 to March 2006- PNB Positions: Bookkeeper, Clearing Processor, Teller, Financial Management Specialist, New Accounts Branches: Ayala Avenue and Makati Avenue Branch April 2006 to January 2008- PNB Position: Sales and Service Officer (SSO) Branches Handled: Ayala Avenue, Harrison, Malate and Pasay Branch

BASIC FUNCTION: Responsible for the control and safekeeping of branchs operating funds, accountable forms and other documents. February 2008 to present- PNB Position: Sales and Service Head (SSH) Branches Handled: Pandacan, Malate, CBSU and DPWH Branch BASIC FUNCTION: Responsible for the overall supervision of branch operations and service delivery; ensuring: 1) compliance with the bank, BSP and other government regulatory bodies rules and regulations and policies, 2) zero operational losses..etc.

IV.

PRODUCTS/ SERVICES OFFERED

Personal Banking
Manage your Cash CREDIT CARDS
y PNB VISA Credit Card provides the cardholder to purchase goods and services on credit, avail of cash advances and enjoy purchases on installment or flexible payment terms. PNBs Astra Secured Credit Card (ASK Card). It is the only credit card that gives you the financial flexibility you require and at the same time helps you build your credit with ease.

PESO SAVINGS ACCOUNT

y Superteller Savings Account. Enjoy banking convenience through PNBs 382 Superteller ATMs and over 6,000 BancNet and MegaLink ATMs nationwide. Inquire balance, pay bills, transfer funds, or use your ATM card for cashless purchases through MegaLink POS (point-of-sale) facility that allows online debiting against your ATM account. Prime Savings Account. Maximize your savings with a high interest-earning savings account. With two (2) withdrawals per month, you get to enjoy tiered interest rates without incurring service fees.

PESO CHECKINGS ACCOUNT

y PNBig Checking Account. Benefit from an interest-bearing checking account that offers you convenience in managing your funds while having the earning power of a savings account.

FOREIGN CURRENCY DEPOSIT ACCOUNTS

Make your foreign currency work for you. y Dollar Savings y Dollar Current y Euro Savings y Yen Savings

Protect your Assets NON-LIFE INSURANCE

y Auto-Protector Plan
The Auto Protector Plan is an insurance plan design to protect your vehicle from accidental damage. The plan covers the following:

1. 2. 3. 4. 5.

Loss or damage Compulsory third party liability (CTPL) Excess third party bodily injury Third party property damage Auto personal accident for passengers

The Auto Protector Plan insures the vehicle and its passengers against accidental damages and injuries. Its coverage exceeds the requirements of the transportation regulatory board, and is more comprehensive than other similar products in the market. Auto Protector Plan subscribers enjoy the following benefits: 1. Fast and efficient claims services 2. Most competitive rates in the industry 3. Steel-clad protection provided by one of the most financially sound insurance companies in the country 4. Premiums may be debited from the clients current or savings account
y House Protector Plan Protect your home against fire and other calamities. The House Protector Plan is the most affordable fire insurance product in the market. We wont even inspect your property, as long as your residence is of Class A construction (concrete hollow blocks under a galvanized iron roof). The insurance takes effect as soon you pay the premium, which can be debited from your current or savings account with any of the PNB branches nationwide.

The 6-In-1 Family Accident Protector Plan is the only insurance plan in the market that covers not only the policyholder, but his family as well. And you get six insurance benefits in one package plan with 24/7 coverage, 365 days a year, anywhere in the world.

1. 2.

3.

Accidental Death / Loss of Life The plan shall pay 100% of the Principal Sum in the event of an injury resulting to death within twelve (12) months from the date of accident Accidental Permanent Disablement The plan shall pay up to 100% of the Capital sum in the event of an injury resulting to total permanent disability or total loss of use of any part(s) of the body within twelve (12) months, as stated in the schedule of benefits under the policy. Unprovoked Murder and Assault The plan extends to cover death or disablement caused by Murder or Assault or any attempt threat, provided such murder or assault shall not have been provoked by the Insured Person.

4. 5.

6.

Medical Reimbursement The plan shall reimburse all the expenses incurred within one (1) year from the date of accident, up to the maximum amount selected per accident. Daily Hospital Confinement / Daily Hospital Income The plan shall pay the actual amount selected for each day, up to thirty (30) days, while the Insured Person is confined in a hospital as a result of an accidental bodily injury. Accident Burial Expense The plan shall pay for burial expenses in the event of death/loss of life of the insured person, as a result of an accidental bodily injuries, up to the chosen plan limit.

LIFE INSURANCE PRODUCTS

y Traditional Protection Premier Life is a participating whole life insurance plan  It provides protection up to age 100.  It builds guaranteed cash values and earns dividends Investment  Maxi Ally  A unique product that brings together the opportunities of investing in expertly managed funds and the security of having insurance protection of at least 125% of your investment while having maximum flexibility in determining its features.

Special Products

Airlite  , PNB Life provides you lifetime and undiminished coveragewhich your family or loved ones can all the more depend upon in case of accidental death while travelling as a fare-paying passenger on any scheduled airline.

Investment Opportunities
y

CORPORATE BANKING
Corporate Cash Management
Our powerful and efficient services let you maximize control over your business finances to keep you a step ahead in the marketplace.

CASH MOVER

If your company needs to deposit large sums of cash, and requires the convenience and security of a collection service, then Cash Mover is for you. Cash Mover minimizes your delivery and administrative costs, and guarantees the safety of your funds. You also enjoy the widest coverage area for servicing through PNBs nationwide network.

Features
a. b. c. Same Day Credit. Cash deposits collected from your office shall be credited to your Main Deposit Account on the same day. Pre-Arranged Schedule. Pick up sites and collection frequency shall be pre-arranged to ensure smooth operation and avoid disruption of business. On Call Pick-Ups. Collection of deposits on days not covered in the regular schedule or during non-banking days may also be rendered under a special arrangement.

Benefits
a. Economy. No need for you to contact an armored car service provider, employ the service of a courier company or hire a motorized messenger. You do not even have to ask any of your personnel to go out of your office to make a deposit. We will collect your deposits and credit it to your account on the same day. Safety. Pick up of deposit via armored vehicles shall be conducted by our Roving Tellers accompanied by armed personnel. Comfort. No need to worry! Cash normally kept in your vault or checks hidden in your drawers will be deposited to your bank account without you having to leave your office. Performance. We bind ourselves in providing this service to you, unless otherwise prevented by force majeure, riots, civil war, etc. Durability. Competence and stability! We are an institution powered by competent, dynamic, passionate and service-oriented people that gets satisfaction from serving our clients.

b. c. d. e.

eCollect
If your business has customers all over the country, eCollect lets them pay you through any of our branches, ATMs and e-banking channels nationwide. Features
a. b. c. Same Day Credit. Cash payments received from your customers shall be directly credited to your Main Deposit Account on the same day. Easy Monitoring. Details of each payment received through any of the payment channels shall be recorded and reported to you. Anytime... Anywhere. Acceptance of payments is not limited during office hours nor is limited to specific location. Payments will be accepted through ATMs (PNBs 300+ SuperTeller ATMs as well as Megalinks ATMs), Phone Banking, Mobile Phones, Internet, Automated Debit Arrangement.

Benefits
a. b. c. Economy. No need to invest on payment centers or create your own collection team. Make use of our infrastructure to manage your receivables. Safety. No need to disclose your Savings or Current Account to your customers. We have a collection system that ensures customer privacy and at the same time post payment to your nominated deposit account. Convenience. You will be relieved of the day-to-day collection headaches, giving you more time to focus on income generating activities. What s more, your customers need not go an extra mile to make payment. They can make payment through phone, computer or go to the nearest PNB or Megalink ATM. Performance. Expand your reach. Bridge geographical distance. We have been doing this to more than 80 institutions nationwide. Durability. We have been providing this service for more than 10 years.

d. e.

PAYWISE - Paywise makes it easy for you to prepare your companys regular payroll. It lets you transfer funds to your employees PNB accounts.

Features
a. b. c. Electronic Data Transfer. Submission of Payroll File may be done electronically thereby eliminating physical delivery of diskettes and instructions. Nationwide Coverage. Employees may open their payroll account at any of the Banks more than 300 online branches. Data Entry System. Comes with a computer program that records and stores employee name and account number for easy generation of Payroll File.

Benefits
a. Safety. Data Entry System promotes confidentiality, security and accuracy. No need for you to visit our branch and make huge withdrawals. Transfer of funds will be done in a timely and secured manner. Convenience. You will be relieved from issuing checks &/or manually distributing cash to your employee. Employees on the other hand need not leave the office to check their balance or pay bills. They can avail of our internet and phone banking services. Performance. Minimizes delay in giving out salaries and/or wages to your employees. Esteem. Employees can experience the latest in banking technology. Perform electronic transactions, pay bills or do cashless shopping using our ATM Card that comes with the payroll account.

b.

c. d.

e- TAX PAYMENT SYSTEM - File your companys tax returns through the Internet. We provide a workflow design and make it more convenient and more efficient than ever for you to pay your taxes.
Features
a. b. c. d. Immediate Posting. Records are posted immediately. Tax payments of employees are posted immediately and accurately. Easy to Use. No installation, no programming needed. Paperless. No more paper clutter. No more hefty documents to file. Everything is done electronically. AnytimeAnywhere. You can do this in the comfort of your home or your office even in the wee hours of the morning. Economy. No need for you to issue check and send a messenger to physically deliver tax documents to the nearest BIR Office or to our branch. All you need to do is fill out an enrollment form, transmit the required file together with the debit instruction. Safety. Confidentiality of record is maintained. Instruction as well as the payment list is encrypted to prevent unauthorized access to your record. Comfort. Settling the companys obligation need not be a difficult and tedious task. You can now do it at the comfort of their home or office. Performance. Avoid error and unposted employee payment due to invalid data. Through this channel, you will be able to determine invalid records and will be prompted to correct the error right away, thereby making each record correct and updated. Esteem. Oversee all this activity either on screen or with printed document.

Benefits
a.

b. c. d.

e.

Business Loans
Whether your business demands quick cash to cover its expenses, or whether you need long term credit to buy new equipment or finance your expansion, we offer you many attractive and easy loan options.

TERM LOANS
1. Long-Term Loans o For project financing o Expansion/modernization of facilities or acquisition of capital goods or services o Loan maturities range from 2 to 7 years Short-Term Loans o To finance working capital requirements

2.

o o

Acquisition of raw materials, supplies, etc. Repayment within one year

SPECIALIZED LENDING PROGRAMS

These loans from government financial institutions aim to help startup projects, expansion projects, rehabilitation and relocation projects. Some loans can have maturities as long as 20 years.

CREDIT LINES
1. Revolving Credit Line (RCL)
o o o o o o o o o o o Used to augment operating and working capital requirements Available by promissory notes (PNs) of up to 360 days A multi-purpose loan you can avail of yourself, depending on your credit requirements For example, you can combine Export Advance Line, LC/TR Line, RCL, etc. Exclusive to foreign exchange earners, such as exporters or producers Used to finance short-term requirements Option to withdraw in pesos or in US dollars, depending on what you require You can quickly convert your customers postdated checks into cash Eligible to those whose businesses normally accept postdated check payments Convert your checks and bank drafts into cash We may purchase your checks, drafts, Treasury Warrants, and other negotiable peso instruments.

2. Omnibus Line

3. Peso/FX Convertible Credit Line

4. Discounting Line 5. Domestic Bills Purchased Line

TRADE SERVICES AND FINANCE

           

Trade Services Letters of Credit (L/Cs) Documentary Collections under Open Account, Documents against Acceptance/Payment Guarantees in the form of Standby L/Cs Collection of Custom Duties and Taxes Advisory Services Trade Finance Import Financing thru LC/TR Lines Export Financing thru Export Advance Lines (pre-shipment financing), or Export Bills/Drafts Purchased Lines (post-shipment financing) Structured Trade Finance Export-Import Bank of United States (US-EXIM) Guarantee Program Export Credit Agency (ECA) Lines

LOANS TO LOCAL GOVERNMENT UNITS

   

Eligible Borrowers: Local governments of provinces, cities and municipalities Eligible Projects: Revenue generating or cost saving projects Projects with significant socio-economic impact on the community such as public market, infrastructure, machinery and equipment, etc.

SMALL BUSINESS LOAN PROGRAM

      

To finance business expenditures or expansion Eligible borrowers: those engaged in light manufacturing, processing, services and retail/wholesale trade Favorable track record/experience and credit standing for the past three (3) years Minimum of P1.0 Million up to P10 Million loanable amount Term Loans (TL) and Domestic Bills Purchase Line (DBPL) Minimum tenor of one (1) year to maximum of five (5) years

Foreign Exchange
y
Currencies Available for Exchange: Philippine Peso, US Dollar, Euro, British Pound, Australian Dollar, Canadian Dollar, Swiss Franc, Japanese Yen, Hong Kong Dollar, Singapore Dollar, Saudi Riyal, Bahraini Dinar, Danish Krone, Swedish Krona, Brunei Dollar, Indonesian Rupiah, Thailand Baht, Taiwan Dollar, New Zealand Dollar, Chinese Yuan and Korean Won. Rates for converting foreign currency to Philippine Peso or US Dollar and vice versa is readily available. Upon request, we provide rates for converting non-US dollar foreign currency to another non-US dollar foreign currency.

Selling Foreign Currency to PNB: For most currencies, PNB can purchase notes (cash), checks, incoming telegraphic transfers, and demand drafts. We also purchase US Treasury Warrants and US dollars transferred through the Philippine Domestic Dollar Transfer System (PDDTS).

Purchasing Foreign Currency from PNB: We sell foreign currency notes (cash, and subject to availability), travelers checks, demand drafts, and telegraphic transfers. You can pay by issuing a managers check, instructing us to debit your account, or using the Real Time Gross Settlement (RTGS) facility. You can buy more than US$ 30,000 (or its equivalent in another foreign currency) only if you have the necessary documentation accepted by the Bangko Sentral ng Pilipinas (BSP).

Settlement or delivery of foreign currency: o Value Spot: on or within two banking days from transaction date o For currencies other than the US Dollar, earliest settlement is one day after transaction date o Value Forward: the client specifies a future date more than two banking days after the transaction date. Swap points are applied for forward transactions. Swap transactions: Corporations may also enter into swap transactions. Your company can purchase a currency value spot, with a simultaneous sale of the same amount of the same currency value forward.

Protect your Assets

y
CUSTODIANSHIP As custodian we will safekeep the vital documents and securities of your company and even perform procedural activities to protect your best interests.

ESCROW

To secure your business arrangements/interests, your company and your business partners can deposit your money, securities, and vital documents with us and we can act as your escrow agent. We will look after these escrowed deposits and release them upon occurrence of specified and defined contingencies or prescribed events. We handle several types of escrow: 1. 2. 3. 4. 5. POEA Escrow Japanese Escrow Real Estate Escrow BIR Escrow Others (customized Escrow)

MORTGAGE.TRUST.INDENTURE As Trustee between your company and your creditors to structure the security/collateral arrangements between/among yourselves as regards certain loan facilities.

SECURITIZATION To help free up cash for your company and improve its balance sheet, we can act as the Trustee for your companys pool of mortgages and receivables. We can assist you in designing the structure and packaging the cashflow feature of the pool backing the securities, which will be issued to the general investors in exchange for cash. You dont have to wait until your receivables are paid to obtain new funds for your business.

BOND.FLOTATION Raise your companys capital by issuing and selling bonds to the general public and Trust Banking Group can act as trustee for the bond facility. We also serve as the paying agent to service the bondholders.

Global Trade Center

Export Services

y y y

Advising of Letters of Credit Confirmation of Letters of Credit Export Financing: o Pre-Shipment Export Financing o Post Shipment Financing

Import Services

y y y y

Issuance and negotiation of Letters of Credit (Foreign/Domestic) Issuance of Shipside Bonds (Shipping Guarantee) Trust Receipt Financing Servicing of Importations and Sale of Foreign Exchange (FX) for Trade in USD and major third(3rd) currencies including RMB/Chinese Yuan (NEW) o Letters of Credit (LC) o Collection Documents DP, DA, OA o Direct Remittance- (DR)

y y

o Advance Payment Forward Contracts for future Import Payments Servicing of Collection and Payment of Advance and Final Customs Duties for all ports in the Philippines covered under the E2M project of Bureau of Customs (BOC) Project Abstract Secure (PAS5) (NEW)

Special Financing Services

y y o o o o o y y o o

BSP E-Rediscounting Facility for Export and Import Transactions Issuance of Standby Letters of Credit to serve the following bank guarantee requirements: Loan Repayment Guarantee Advance Payment Bonds Bid Bonds Performance Bonds Other Bonds Issuance of Standby Letters of Credit under PNBs Own a Philippine Home Loan Program Issuance and Servicing of Deferred Letters of Credit as mode of payment for: Importation or Local Purchase of Capital Goods Services Rendered ( e.g, Construction/Installation of Infrastructure Projects, etc.)

Investment Opportunities