PHILLIPINE NATIONAL BANK -PPT-REPORT.pptx

PNB REPORT

1. PHILIPPINE NATIONAL BANK (PNB) KIDAPAWAN BRANCH College of Accountancy, Business and Management Education Bachelor of Science in Management Accounting Reporters: Mitchie R. Catubag Karyme B. Venturado Crizel Jane P. Quilangit Kesha Camille Mercades Christine Marie B. Hingpit

2. Objectives: To analyze PNB's position in the banking industry and evaluate its market share, competitive advantage, and customer base. Identify opportunities for growth and strategies to improve market penetration . To e valuate PNB's operational processes and efficiency, including cost management, technology adoption, and process optimization. Identify inefficiencies and propose measures to enhance operational effectiveness . To review PNB's corporate governance practices, including the composition of the board of directors, transparency, and accountability. Identify any gaps or areas for improvement in corporate governance . To analyze the external environment such as the Natural Physical Environment, Societal Environment, and Task Environment.

3. PNB w as established by the Government of the Philippines in 1916. In May 2002, the Philippine government and Lucio Tan signed an agreement to swap government loans for shares in PNB. In 2007, PNB was fully acquired by tycoon Lucio Tan.

4. Philippine National Bank is the first and one of the country’s largest private universal banks in terms of assets, loans and deposits. It provides a full range of banking and other financial services to its highly diverse clientele comprised of individual depositors, small and medium enterprises, domestic and international corporations, government institutions, and overseas Filipinos. Backed by over a century of stability and excellence, PNB looks forward to more years of serving its customers first.

5. STRATEGIC POSTURE MISSION : We are The Philippine bank promoting financial prosperity for all Filipinos and their businesses, locally and internationally, empowering them to build a competitive, inclusive, and sustainable economy. VISION : To be among the Top 3 Banks in terms of Customer Growth and Satisfaction , and Return on Equity. CORE VALUES: Our Shared Values bind everyone in PNB together, providing the basis for trusting one another and helping enable the Bank to achieve its mission and vision.

6. PRODUCTS AND SERVICES

7. CURRENT SITUATION PNB is a leading financial institution with a strong track record and an 11% market share in total assets. In November 2023, PNB registered a consolidated net income of P13.5 billion for the first nine months of the year, a 19% increase compared to the same period last year. Gross loans amounted to P635 billion as of end-September 2023, a 4% increase from the end-December 2022 level.

8. PNB is focused on digital transformation, financial inclusion, and innovation to capitalize on the growth of the Philippine economy. DIGITAL INNOVATION PNB DIGITAL APP SELF-SERVICE KIOSK QR CODES FOR PAYMENTS ATM MACHINES

9. STRATEGIES: The Philippine National Bank (PNB) has implemented strategies that cover different areas of its operations, such as ; And also, s ocial responsibility, global expansion, and corporate governance. By prioritizing these strategies, PNB ensures its long-term sustainability, customer satisfaction, and contribution to the Philippine Economy.

10. POLICIES: PNB has policies in place regarding related party transactions (RPTs). The bank's Board of Directors, Management, and Staff, including its subsidiaries and affiliates, commit to adopting and adhering to the Policy Guidelines on RPTs. These guidelines were formulated in accordance with various regulations, including ; SEC Code of Corporate Governance for PLCs Securities Regulations Code, BSP's Enhanced Corporate Governance Guidelines for BSFIs, Guidelines on RPTs of Banks, Prudential Policy on Loans to DOSRI/Subsidiaries/Affiliates Basel Core Principles (BCP) for Effective Banking Supervision No. 20, and other related laws and regulations. These policies ensure transparency, compliance, and ethical practices in PNB's dealings with related parties.

11. CORPORATE GOVERNANCE PNB's Board of Directors consists of 15 members, including 5 independent directors and a Chairperson. Board members are selected from a diverse pool of competent candidates and elected annually by stockholders. They approve and oversee the implementation of the Bank's strategic objectives, risk management strategy, and corporate values. T he Board promotes the long-term success, competitiveness, and profitability of the Bank, its subsidiaries, and affiliates in the best interests of stakeholders. Board members bring extensive expertise and integrity to uphold good corporate governance practices .

12. EXTERNAL ENVIRONMENT PNB faced challenges after the 2019 earthquake, including uncertain collateral values, credit risks, and infrastructure damage. The COVID-19 pandemic resulted in job losses, loan defaults, decreased business and consumer spending, and reduced profitability for PNB. Earthquakes caused damage to bank infrastructure, leading to temporary closures, service disruptions, and delays in transactions. Power outages and communication network damage hindered PNB's ability to process transactions and communicate with customers.

13. Based on the EFE matrix, Philippine National Bank shows an effective response to existing opportunities and threats in the industry, with a score of 3.12. The bank has four significant opportunities, including branch expansion, a growing Philippine economy, and technology advancement, with the highest weighted scores. Partnership and collaboration with non-financial entities is also a notable opportunity. However, there are also threats to consider, such as intense competition, data breaches, and pandemic or health crises. Overall, PNB demonstrates proactive actions to capitalize on opportunities and mitigate risks, positioning the bank for continued success .

14. INTERNAL ENVIRONMENT PNB has an organizational structure that supports efficient operations and good governance. The Board of Directors is responsible for supervising important decisions and maintaining corporate governance guidelines. The President and CEO oversee daily operations and strategic direction through the Executive Management team. PNB offers specialized services through departments like Risk Management, Retail Banking, and Corporate Banking. Regular market research helps PNB adapt to changing needs and preferences.

15. The table indicates that PNB has an average strength compared to its competitors, with a total weighted score of 3.50. The bank's strengths include a competitive advantage and notable capabilities in its established history and reputation, as well as its nationwide branch network, which has a significant weighted score of 0.32. On the other hand, the limited number of personnel is a potential risk and a factor that hinders the bank's performance, with the highest weighted score of 0.32. Overall, this assessment serves as a guide for PNB, emphasizing the importance of enhancing current strengths and strategically resolving deficiencies. It aligns the bank's units with a path for ongoing growth, operational efficiency, and internal capabilities that align with its aspirations for the future.

16. IMPLEMENTATION The Philippine National Bank is enhancing its leadership and employee skills to improve effectiveness. They aim to achieve market penetration through thorough market analyses, marketing efforts, promotional campaigns, and competitive pricing strategies. They also focus on improving customer service through process evaluation, staff training, feedback mechanisms, and technology. They also aim to improve products and services, increase awareness, and create strategic alliances.

17. EVALUATION AND CONTROL The Philippine National Bank (PNB) utilizes advanced technology to streamline core banking functions and enhance performance evaluations. This system facilitates efficient communication and collaboration among employees, enabling easy financial report transfer from branches worldwide. PNB's strong performance and focus on leadership proficiency align with its strategic plan, promoting interpersonal communication, strategic planning, and high organizational performance for market expansion.