PHILIPPINE NATIONAL BANK

The bank was acquired by tycoon Lucio Tan after it was privatized by the government. . 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. The Bank remains as one of the largest banks in the country with a wide array of competitive banking products to answer for the diverse needs of its huge clientele including more than 2 million depositors. The Bank's principal commercial banking activities include deposit-taking, lending, bills discounting, foreign exchange dealing, investment banking, fund transfers/remittance servicing and a full range of retail PNB maintains its leadership in the overseas remittance business. The bank's international subsidiaries have an approximately network of 65 offices with remittance centers in the United States, Canada, London, France, Italy, Hong Kong, Japan, Singapore and the Middle East countries. Through its subsidiaries, the Bank also engages in a number of diversified financial and related businesses such as remittance servicing, investment banking, non-life insurance, stock brokerage, leasing and financing and foreign exchange trading. The Bank, through its affiliate, is also engaged in other services such as life insurance. On February 9, 2013, the PNB-Allied Bank merger was completed and adopts the PNB brand, making the merged bank as the 4th largest private domestic bank.

Mission and Vision

Our goals for the bank our stakeholders, clients and employees.
Mission Statement We are a leading, dynamic Filipino financial services group with a global presence committed to delivering a whole range of quality products and services that will create value and enrich the lives of our customers, employees, shareholders and the communities we serve. Vision 2010 and Beyond To be the most admired financial services organization in the country in terms of: Financial performancerank#1or#2initsbusinessesintermsofreturnonequity

Innovativenessinproducts,services,distributionandtheuseofcutting-edgetechnology

Customer perception The preferred financial services provider The customer-centered organization with a passion for service excellence Social responsibilitytheemployerofchoice,agoodcorporatecitizenandpartnerinnation-building Long-term visiondevelopingcompetitiveadvantageonasustainedbasisbyanticipatingchangesincustomers preferences and in the manner of doing business

"Financial performance rank #1 or #2 in its businesses in terms of return on equity" FINANCIALS Objectives Targets Create value for shareholders Increase ROE to level at 15% in the next 3 years

"To succeed financially how shoud Optimize use of resources in Increase ROA by 5% in the next we appear to our the delivery of core functions 3 years shareholders?" Increase bottom line figures Ensure financial sustainability (Net Income) by 8% for the and stability next 3 years Improve bench strength Increase benchmark performance measures by 5% each year

"Customer perception - The preferred financial services provider. The customer-centered org excellence."

CUSTOMER Objectives Targets Provide informational publishings/postings in the company website ( 2 postings per month) Reduce waiting time for customers by 10% in the next 3 years Reduce website access downtime Utilize electronic banking services by increasing electrionic banking usage by 5% in the next 3 years Get 80% score in satisfaction surveys Reduce customer complaints Reduce number of complaints customers receive by 4% in the next 3 years Increase market size by 10% for the next 3 years

Make information readily available to customers and respond timely to queries

"To achieve our vision, how should we appear to our customers?"

Improve timeliness in providing agreed deliverables and services

Increase Market Share

Create Top of Mind choice

Increase market visibility of PNB branches

Create client stickiness through Increase product sales by 10% cross-selling of high-margin and each year

"Long-term vision developing competitive advantage on a sustained basis by anticipating cha the manner of doing business" Innovativeness in products, services, distribution and the use of cutting INTERNAL BUSINESS PROCESS Objectives Targets Manage operational costs Reduction of operational expenses by 10% every year for 3 years

"To sastisfy our shareholders and Improve acknowledgement to customers, what and resolution of issues raised business process must by customers we excel at?" Rationalize existing branch network and manpower complement

Continuous process of identifying, assessing, mitigating, and monitoring risks

Mitigate risk exposure 95% of all Service Requests responded and resolved on time Reduction in the % of nonperforming branches and personnel

Continue directional shift from over-the-counter to remote non face-to-face model

Increase volume by 5% each year

"Social responsibility the employer of choice, a good corporate citizen and partn

LEARNING AND GROWTH Objectives Targets

Improve employee and knowledge retention

Increase training per employee by 7 hours for the next 3 years

"To achieve our vision, how will we sustain our ability to change and improve?"

Reduce turnover rate

Reduce turnover rate by 3% in the next 3 years

"To achieve our vision, how will we sustain our ability to change and improve?"

Reduce turnover rate

Reduce turnover rate by 3% in the next 3 years Atleast 20 managerial trainees to fill up managerial/supervisory positions per year

Employee Empowerment

Create a pro-active sales organization

Increase target/goals by 15% each year

businesses in terms of return on equity" FINANCIALS Measures Increase Retun on Equity

Initiatives Increase and imporve profitability through expansion, customer retention and cost effectiveness Utilize aseet use by making valuable investment decisions that will contribute to the bottom line Establish efficiency metrics for income generating accounts Retool capacity and capability of domestic and overseas branches

Return on Assets

Revenue Growth Benchmark Performance Measures

ancial services provider. The customer-centered organization with a passion for service excellence."

CUSTOMER Measures Initiatives

Customer access to accurate Publishing timely and relevant reports and relevant information (electronic or in print) Monitor number of unanswered calls due to call backlog Monitor web traffic Improve process in handling complaints Improve IT infrastructure

Customer Surveys

Create new ways of delivering services through e-banking Process Excellence Programs (Satisfaction Ratings) Improve Customer Service Providing new products to customer and offer attractive rewards/loyalty programs

Customer Satisfaction Rating

Customer Complaints

Average customer size

Customer Satisfaction Rating

Average customer size

Offer best in class customer propositions Rebuild PNB brand imagery across branches-Standardization and consistency of brands in all PNB branches Introduce new product variant Ramp up marketing visibility

advantage on a sustained basis by anticipating changes in customers preferences and in the manner of doing business" oducts, services, distribution and the use of cutting-edge technology INTERNAL BUSINESS PROCESS Measures Initiatives Monthly comparison of expenses incurred (Monthly expense monitoring) Review current bank wide risk management system Service Request Response and Resolution Rate Establish cost recovery programs. Train employees to be more cost efficient

Business risk awareness program

Service fulfilment initiatives

Standard Performance Measures

Review business model Review branch locations

% of Untapped customer markets

Launch enhanced web and phone banking capacity

employer of choice, a good corporate citizen and partner in nation-building"

LEARNING AND GROWTH Measures

Initiatives Hire outside trainers.

Average training hours

Employee Turnover rate

Provide adequate budget for trainings and seminars. Increase time spent on training by management and staff. Encourage job rotation and increased job participation.

Employee Turnover rate

Improve compensation and benefits package Management Training Programs

Leadership Effectiveness Rating

Launch incentive and recognition programs based on performance Close monitoring of performance goals Launch performance-based incentive programs on new customer acquisition Support on the ground sales expansion with marketing programs