development mindset

powered by

strengthening a

governance

PGS Initiation Stage Revalida Presentation

30 March 2012, Public Governance Forum

5
4 3 2

development mindset

strengthening a

and governance

CORE VALUES
Integrity Love for the Filipino Excellence Teamwork Service to others

MANAGEMENT PHILOSOPHY
Participative Management Good Governance Transparency People Development

MSMEs

Social Sector

Infrastructure and logistics

Environment

MSMEs

Social Sector

MISSION STATEMENT
We will work for raising the level of competitiveness of the economy for sustainable growth. We will support infrastructure development, responsible entrepreneurship, efficient social services and protection of the environment. We will promote and maintain the highest standards of service and corporate governance

Infrastructure and logistics

Environment

65
PRE-DBP
Govt trust fund

ENABLING PARTNERSHIPS FOR DEVELOPMENT

1947 Rehabilitation Finance Corp 1986 Clearing of books 2009 New logo for innovation 2012 Pioneer in corporate governance

1935 National Loan and Investment Board

Transfer of nonperforming assets

START

EXPAND
1958 Reorganized into DBP Expansion of network of branches

RESTART

INNOVATIVE GROWTH & GOOD GOVERNANCE

P4.02B highest ever core net income 2011

1939 Agricultural and Industrial Bank

1995 Universal banking status

SERVICES OFFERED

Credit facilities

Branch Banking

Countryside Finance

Lending: housing, SMEs and agri

Mortgage loan, secured and unsecured loans

Investment banking, sales, merchant, trading and research

VISION STATEMENT

By 2016, a globally-recognized development financial institution, serving as a catalyst for a progressive and poverty-free Philippines

Infrastructure, logistics and PPP thrust of the Aquino Administration

Generation of private sector deposits + OFW remittances Branch expansion

Development lending activities with low returns Losing of duopoly over government deposits High cost producer with limited branch network Impending ERIP

Competent, well-trained and motivated officers and staff

DEVELOPMENT BANK OF THE PHILIPPINES STRATEGY MAP 2016

A globally-recognized development financial institution, serving as a catalyst for a progressive and poverty-free Philippines
-We will work for raising the level of competitiveness of the economy for sustainable growth -We will support infrastructure development, responsible entrepreneurship, efficient social services and protection of the environment -We will promote and maintain the highest standards of service and corporate governance.

MISSION

OPERATIONAL EXCELLENCE

DEVELOPMENTAL THRUST

MGT PHILOSOPHY
-Participative Management -Good Governance -Transparency -People Development -Integrity -Love for the Filipino -Excellence -Teamwork -Service to others

CORE VALUES

DEVELOPMENT BANK OF THE PHILIPPINES STRATEGY MAP 2016

A globally-recognized development financial institution, serving as a catalyst for a progressive and poverty-free Philippines
-We will work for raising the level of competitiveness of the economy for sustainable growth -We will support infrastructure development, responsible entrepreneurship, efficient social services and protection of the environment -We will promote and maintain the highest standards of service and corporate governance.

MISSION

Who are our stakeholders and how can they benefit from our services?

SOCIAL IMPACT

How do we improve our fund sourcing and management?

FINANCE

CONSTITUENCY
How do we intensify funding for priority areas? What are we doing to be globally recognized?

INTERNAL PROCESS
What corporate governance practices should we implement to achieve breakthrough results, comply with internal and external regulatory requirements and strengthen bank operations?

MGT PHILOSOPHY
-Participative Management -Good Governance -Transparency -People Development -Integrity -Love for the Filipino -Excellence -Teamwork -Service to others

ORGANIZATION
How can we acquire, develop and harness the skills and talent of our people to attain our vision? Do we have sufficient organizational development initiatives to pursue our mandate and grow? Are we providing the direction to our people to think developmental?

CORE VALUES

DEVELOPMENT BANK OF THE PHILIPPINES STRATEGY MAP 2016

A globally-recognized development financial institution, serving as a catalyst for a progressive and poverty-free Philippines

Social Impact

Finance

Constituency Internal Process

Implement a structure for a learning & peak-performing organization.

Organization

Recruit and retain the best and the brightest

Improve training programs for head office and branch.

Update and align PMS toward a balanced and efficient operations

Institutionalize a succession plan and talent management

GOVERNANCE SCORECARD
PGS INITIATION STAGE REVALIDA
Strategic Objectives
E. Implement a structure for a learning and peakperforming organization D. Institutionalize a succession plan and talent management C. Update and align PMS toward a balanced and efficient operations B. Improve training programs for head office and branch A. Recruit and retain the best and the brightest

Measures

Initiatives
Provide training as determined by the TNA and provide technology support Hiring program to meet targets and competency requirements Maintain adequate pool of qualified candidates Establish a succession planning system for all key positions below the President up to AVP level Update the PMS and align to vision and mission of the Bank Conduct priority training as determined by TNA Review training needs and updated T&D programs to meet the 5% Engage third party for competitiveness in compensation Conduct image and reputation survey, CSR/Environment policies Enhance HR policies

5. % of home-grown to external hires

4. % of critical positions with a succession plan

3. % of performance management system aligned to the strategy 2. % of T&D cost to total people cost

1. Ranking in reputation as an employer/ institution

DEVELOPMENT BANK OF THE PHILIPPINES STRATEGY MAP 2016

A globally-recognized development financial institution, serving as a catalyst for a progressive and poverty-free Philippines

Social Impact Finance Constituency Adopt responsive bank management & governance practices

Internal Process

Establish and utilize ICT as a management tool and enabler

Streamline credit and other operating processes

Carry out mandate of regulators in audit, risk mgt & compliance

Maintain good standing with regulatory bodies

Implement a structure for a learning & peak-performing org Recruit and retain the best and the brightest Improve training programs for head office and branch Update and align PMS toward a balanced and efficient operations Institutionalize a succession plan and talent management

Organization

GOVERNANCE SCORECARD
PGS INITIATION STAGE REVALIDA
Strategic Objectives
J. Adopt responsive bank management and governance practices I. Maintain good standing with regulatory bodies H. Carry out mandate of regulations in risk management and compliance

Measures
13. Time needed to consolidate and release financial and operating reports 12. Status with regulatory bodies 11. CAMELS Rating

Initiatives
Maintain, if not improve, timeliness, accuracy, reliability and relevance of financial and operating reports Address all issues raised and prevent recurrent, establish policies where need (esp. policy on whistle blowing) Banking best practice on areas for improvement Review standards and monitoring systems Identify delays in loan releases and correct Review policies needing updating Make NPL Performance relate to PMS and strengthen monitoring system

10. % backlog in loan applications

G. Streamline credit and other operating process 9. % of approved loans released 8. NPL to total loans

F. Establish and utilize ICT as a management tool and enabler

7. % completion of major ISSP projects

6. Number of new offsite ATMs

Implement remaining major projects based on the 2011 ISSP

Identify appropriate locations Sustain responsiveness and usefulness of site

DEVELOPMENT BANK OF THE PHILIPPINES STRATEGY MAP 2016

A globally-recognized development financial institution, serving as a catalyst for a progressive and poverty-free Philippines

Social Impact Finance

Constituency

Support government priority programs

Build recognition as a preferred partner of OFWs/investors

Adopt responsive bank management & governance practices

Internal Process

Establish and utilize ICT as a management tool and enabler

Streamline credit and other operating processes

Carry out mandate of regulators in audit, risk mgt & compliance

Maintain good standing with regulatory bodies

Implement a structure for a learning & peak-performing organization.

Organization

Recruit and retain the best and the brightest

Improve training programs for head office and branch

Update and align PMS toward a balanced and efficient operations

Institutionalize a succession plan and talent management

GOVERNANCE SCORECARD
PGS INITIATION STAGE REVALIDA
Strategic Objectives Measures
18. % of loan portfolio supporting government priority programs

Initiatives
Cooperative Anti-Lending Program Facility Agribusiness Development Programs Tree Plantation Financing Programs Sustainable Shelter Devt Financing Program Green Finance Program Financing Program for the Sanitation Sector Financing Program for the Water Sector Connecting Rural Urban Intermodal System Efficiency (CRUISE) Program Financing Program for Basic Education Deliberate shift to development loans

L. Support government priority programs

17. % composition of loan portfolio according to government priority programs

16. % increase in volume of new remittances from 2011 (US% 127.5M)

K. Build recognition as a preferred partner of OFWs/investors

15. Total number of new countries with DBPs presence 14. Number of new MOA signed with international tie-ups per year

DBP Overseas Filipino Workers Reintegration Program Generate remittance volume from Overseas Filipinos and governmental/non-governmental organizations serving OFWs Establish DBP presence in key countries hosting overseas Filipinos

DEVELOPMENT BANK OF THE PHILIPPINES STRATEGY MAP 2016

A globally-recognized development financial institution, serving as a catalyst for a progressive and poverty-free Philippines

Social Impact Improved balance sheet & credit rating

Finance
Constituency

Improved ODA funding and sourcing

Quality and balanced investment portfolio

Intensified deposit generation capabilities

Support government priority programs

Build recognition as a preferred partner of OFWs/investors

Adopt responsive bank management & governance practices

Internal Process

Establish and utilize ICT as a management tool and enabler

Streamline credit and other operating processes

Carry out mandate of regulators in audit, risk mgt & compliance

Maintain good standing with regulatory bodies

Implement a structure for a learning & peak-performing organization.

Organization

Recruit and retain the best and the brightest

Improve training programs for head office and branch

Update and align PMS toward a balanced and efficient operations

Institutionalize a succession plan and talent management

GOVERNANCE SCORECARD
PGS INITIATION STAGE REVALIDA
Strategic Objectives
P. Improved balance sheet and credit rating O. Quality and balanced investment portfolio

Measures
25. Industry ranking in: -Assets: -Loans -Deposits -CAR 24. % growth rate in loan portfolio (loans to borrowers) from 2011 (P121.51B)

Initiatives
New branches Aggressive but prudent lending based on priorities Raise new capital Update the PMS and align to vision and mission of the Bank Reduce cost of funds Renegotiate sources of funds Increase number of branches Identify growth areas that can absorb new branches and recruit quality personnel Increase branches, empower branches with IT support, more new products, deposit campaigns, sales oriented organization More branches, mine existing private accounts, review compensating business policy (market base)

N. Improved ODA funding and sourcing

23. Rates comparable to private commercial banks

22. Total number of new branches

M. Intensified deposit generation capabilities

21. % growth rate of low cost deposit portfolio 20. Size of deposit base 19. Composition of deposit base Govt/Private/ LGUs

DEVELOPMENT BANK OF THE PHILIPPINES STRATEGY MAP 2016

A globally-recognized development financial institution, serving as a catalyst for a progressive and poverty-free Philippines

Social Impact
Finance

Expanded access to social services for Filipinos (health, education, livelihood, housing, employment)
Improved balance sheet & credit rating

Improved ODA funding and sourcing

Quality and balanced investment portfolio

Intensified deposit generation capabilities

Constituency

Support government priority programs

Build recognition as a preferred partner of OFWs/investors

Adopt responsive bank management & governance practices

Internal Process

Establish and utilize ICT as a management tool and enabler

Streamline credit and other operating processes

Carry out mandate of regulators in audit, risk mgt & compliance

Maintain good standing with regulatory bodies

Implement a structure for a learning & peak-performing organization.

Organization

Recruit and retain the best and the brightest

Improve training programs for head office and branch

Update and align PMS toward a balanced and efficient operations

Institutionalize a succession plan and talent management

GOVERNANCE SCORECARD
PGS INITIATION STAGE REVALIDA
Strategic Objectives Measures
27. Number of new development programs

Initiatives
Cooperative Anti-Lending Program Facility Agribusiness Development Programs Tree Plantation Financing Programs Sustainable Shelter Devt Financing Program Green Finance Program Financing Program for the Sanitation Sector Financing Program for the Water Sector (498 waterless LGUs and 780 water districts) Financing Program for Basic Education Continuous assessment of development needs Offer competitive rates Raise new capital Renegotiate sources of funds Increase branches, empower branches with IT support, more new products, deposit campaigns, sales oriented organization Update the PMS and align to vision and mission of the Bank

Q. Expanded access to social services for Filipinos (health, education, livelihood, employment, etc.)

26. Cut between developmental/ commercial; retail/ wholesale

DEVELOPMENT BANK OF THE PHILIPPINES STRATEGY MAP 2016

A globally-recognized development financial institution, serving as a catalyst for a progressive and poverty-free Philippines
-We will work for raising the level of competitiveness of the economy for sustainable growth -We will support infrastructure development, responsible entrepreneurship, efficient social services and protection of the environment -We will promote and maintain the highest standards of service and corporate governance.
Social Impact

MISSION

OPERATIONAL EXCELLENCE

DEVELOPMENTAL THRUST

Expanded access to social services for Filipinos (health, education, livelihood, housing, employment)

Improved balance sheet & credit rating

Finance

Improved ODA funding and sourcing

Quality and balanced investment portfolio

Intensified deposit generation capabilities

Constituency

Support government priority programs

Build recognition as a preferred partner of OFWs/investors

-Participative Management -Good Governance -Transparency -People Development

Int. Process

MGT PHILOSOPHY

Adopt responsive bank management & governance practices

Establish and utilize ICT as a management tool and enabler

Streamline credit and other operating processes

Carry out mandate of regulators in audit, risk mgt & compliance

Maintain good standing with regulatory bodies

-Integrity -Love for the Filipino -Excellence -Teamwork -Service to others

CORE VALUES
Organization
Recruit and retain the best and the brightest

Implement a structure for a learning & peak-performing org

Improve training programs for head office and branch

Update and align PMS toward a balanced and efficient operations

Institutionalize a succession plan and talent management

early gains
Alignment in the Aquino administrations governance thrust of infra and PPPs
P29.98B in Infra and Log P7.08B in Environment P11.26B in Social Services

P14.44B in MSME

P49.85B in Other Priority Industries

P7.93B in Commercial Loans

TRADITIONAL not just financial measures

NEW DBP balanced with impact

early gains
First time to include and identify social impact on DBP scorecard