2. Items for Discussion:
Profile of buyer.
Profile of target.
Profile of industry.
Details of transaction.
Pro Forma F/S.
Legal & regulatory considerations.
Why do the deal?
6. Each original shareholder
makes P31.45 per share
profit.
E. Razon = P1.6 billion.
Walter Brown = P821 MM
Ramon Sy = P340 MM
Wilson Sy = P462.1MM
Tiu Family = P2.5 billion
Campos – Lanuza Family
= P891.2MM ++
etc.
19. IBNK Price per Share 42.50
Total Shares 318,680,000
Total Consideration 13,543,900,000
Price of UBP June 5 48.50
Shares to be Issued 279,255,670
20. Pro Forma Balance Sheet: Assets
UBP IBNK Total
UBP IBNK Issues Eliminates Pro Forma
Cash 981 2,089 3,070
Due from BSP 2,958 581 3,539
Due from Other Banks 1,548 1,659 3,207
Interbank Loans Receivable 44,971 5,074 50,045
Securities 32,144 18,116 50,260
Loans and Receivables 13,873 26,037 39,910
PP&E 2,412 1,343 3,755
Investment Properties 5,212 1,704 6,916
Assets Held for Sale 817 - 817
Investment in Associate - 6 6
Other Assets 2,031 1,705 3,736
Total Assets 106,945 58,314 165,259
21. Pro Forma Balance Sheet: Liabilities & Equity
UBP IBNK Total
UBP IBNK Issues Eliminates Pro Forma
Liabilities
Demand Deposits 13,622 15,141 28,763
Savings Deposits 27,198 17,871 45,069
Time Deposits 19,507 10,863 30,370
Bills Payable 13,609 4,460 18,069
Bonds Payable 6,632 - 6,632
Due to BSP 35 - 35
Manager's Checks 1,865 252 2,117
Outstanding Acceptances - 267 267
Accrued Interest and Other Expenses 974 873 1,847
Accrued Taxes 86 86
Other Liabilities 4,926 2,309 7,235
Total Liabilities 88,454 52,036 140,490
Preferred Stock - 250 250
Common Stock 5,512 3,186 2,793 (3,186) 8,305
APIC 1,575 335 10,751 (335) 12,326
Retained Earnings 11,037 1,927 12,964
Other Equity 366 580 946
Total Equity 18,490 6,278 24,768
Total Liabilities & Equity 106,944 58,314 165,258
22. UBP IBNK Total
Interest Income:
Investment Securities 3,384 1,357 4,741
Interbank Loans 851 190 1,041
Loans 783 2,162 2,945
Bank Deposits 611 205 816
Interest Revenues 5,629 3,914 9,543
Interest Expense
Deposit Liabilities 2,271 1,267 3,538
Bills Payable 629 170 799
Interest Expenses 2,900 1,437 4,337
Net Interest Revenue 2,729 2,477 5,206
Provision for Impairment 407 236 643
Net Interest Income After Provisions 2,322 2,241 4,563
Other Income
Trading 1,842 328 2,170
Fees 362 469 831
Trust - 29 29
Property 213 27 240
FX Gain 169 45 214
Misc 891 39 930
Total Other Income 3,477 937 4,414
Other Expenses
Compensation 1,073 712 1,785
Taxes Licenses 266 247 513
Occuancy 190 234 424
Depreciation 145 240 385
Misc. 981 759 1,740
Total Other Expenses 2,655 2,192 4,847
Profit Before Tax 3,144 986 4,130
Income Tax 390 183 573
Net Profit 2,754 803 3,557
23. UBP IBNK Total
Interest Income:
Investment Securities 37% 28% 34%
Interbank Loans 9% 4% 7%
Loans 9% 45% 21%
Bank Deposits 7% 4% 6%
Interest Revenues 62% 81% 68%
Interest Expense
Deposit Liabilities 25% 26% 25%
Bills Payable 7% 4% 6%
Interest Expenses 32% 30% 31%
Net Interest Revenue 30% 51% 37%
Provision for Impairment 4% 5% 5%
Net Interest Income After Provisions 25% 46% 33%
Other Income
Trading 20% 7% 16%
Fees 4% 10% 6%
Trust 0% 1% 0%
Property 2% 1% 2%
FX Gain 2% 1% 2%
Misc 10% 1% 7%
Total Other Income 38% 19% 32%
Other Expenses
Compensation 12% 15% 13%
Taxes Licenses 3% 5% 4%
Occuancy 2% 5% 3%
Depreciation 2% 5% 3%
Misc. 11% 16% 12%
Total Other Expenses 29% 45% 35%
Profit Before Tax 35% 20% 30%
Income Tax 4% 4% 4%
Net Profit 30% 17% 25%
24. UBP-IBNK
Pro Forma Dilution Computation
Before After % Chg
Net Income 2,754 3,557 29.2%
Shares 551.2 830.5 50.7%
EPS 5.00 4.28 -14.3%
Price 48.50 45.00
P/E Multiple 9.7 10.5