Private Banking in Asia and the Philippines 5 October 2012 InterContinental Manila

Where are the HNW Households?

Where are the UHNW Households? Source: The New Normal for Asia, Wealth-X Asia-Pacific became the largest home to HNWIs in 2011 (World Wealth Report 2012)

Asia keeps its funds in Asia

Shift from Eurozone/US to Asia HNW household wealth in USD trillions

Growth in Asia Private Banking Growth of HNW Household wealth (%)

Emerging Markets driving growth in Private Banking Global HNW House- hold Wealth

Private Banking Critical Success Factors i.Open architecture – Broad products – Opens doors to complementary services (e.g. Cash Management, Trade Finance, Treasury, Investment Banking, Asset Management, Corporate Banking) ii.Diverse pool of specialists iii.Holistic advisory iv.Reputation / Integrity

Asia Private Banking Best Practices Client-Advisor ratio Client trust – Understanding the fragility of Client trust Segmentation not only based on assets Digital transformation: Access to information Coordination across organizational boundaries Product specialist pools supporting Private Banking Relationship Managers

Private Bank Wealth Management globally CHF 988 bn in AuM 4,470 advisors in 46 countries Corporates & Institutions in Switzerland Investment Bank Execute client- focused and capital- efficient model Asset Management CHF 361 bn AuM Serving the HNWI in Asia Best Practice / Current Models CHF 988bn in AuM Credit Suisse Standard Chartered

* Philippines * Estimate of the Philippines’ standing Development of Needs of HNW Clients across Asian countries

In the Philippines Insurance Companies Funds Insurance Products Private Banks Holistic Financial Advisory Consumer / Corporate Bank Banking Products Credit FinanceTrade Finance Asset Management In-house fundsTrust Products Treasury / Investment Banking Direct BondsFX Investment Products UnderwritingPrivate Equity

Private Bank Credit facilities BrokerageInsurance Asset Management Research and Tactical Strategies Investment Banking Third party products and services Treasury

Client Confidence Integrity of the Financial Industry Financial Eco-System Political & Economic Stability Increased Flow of Investments Economic Growth Private Banking Treasury Asset Manage- ment Insurance Corporat e and Invest- ment Bank

Where are we? Ranked based on Potential / Opportunities 1.Hong Kong 2. Taiwan 's relatively sophisticated economy and an accommodative competitive scene make it a strong target for expansion 3. Singapore has developed a market for private wealth management, only narrowly missing out on second spot 4.South Korea 5. Malaysia 's steps to liberalize its banking sector have made it more attractive 6.The Philippines has a good framework for private banks, if not the most attractive market at the present time 7. Thailand has a decent framework for private banking, if low market stability 8. Indonesia needs to address local bank profitability to move up the rankings 9. China fared well for a market that only recently embraced private banking, but would benefit from more certainty 10. India : there is much potential in the Indian market, but conditions are not yet ripe Source: Datamonitor 2012, Benchmarking Asia’s Wealth Markets

Economic Growth Source: The Wealth Report 2012, Knight Frank Research and Citi Private Bank Top 10%Bottom 10% 5 Vietnam7.51 Spain2.0 6 Philippines 7.32 France2.0 8 Indonesia6.810 Japan1.0

Source: BSP

Source: asiabondsonline.adb.org Bonds issuedUITF / MF PH-LCY Bonds

Summary Growth is in Asia – Asian Private Banking model Holistic approach – From the product-driven approach to financial advisory Opportunities to support the growth of Private Banking in the Philippines