The official publication of the Ayala group of companies Volume 15, Number 3, May-June 2011
2 Manila Water gets cited in Harvard Business Review
3 Globe hosts 20th SingTel CEO Forum
16 PhilDev launches MAST
20 Ayala Museum presents Guernica
BPI at 160: Blazing trails for the
21st century and beyond
The history of the Bank of the Philippine Islands is
inextricably linked with the history of Filipino innovation
and progress, bearing witness to the country’s many
firsts since the late 19th century. Using the gifts of
banking vision, leadership, commitment, reliability, and
a keen sense of customer-centricity and technology
savvy, the bank has grown tremendously year after
year—often outpacing its competitors and being steps
ahead of an industry going through rapid changes itself.
It has served as the Filipino people’s pillar through wars
and recessions, through struggles and victories, through
periods of upheaval and growth.
In over a century and a half, BPI has proven that “first” does
not mean “old,” that “old” does not mean “slow,” and that
“conservative” does not mean “stagnant.” It has reaped
some of the most coveted awards in the industry—not as a
pronounced goal but as a consequence of its values, attitudes,
and actions. For BPI is ever-mindful of the trust that millions of
Filipinos have placed upon this institution.
With its rich history, BPI builds upon its legacy of leadership by
charting new territory with excellence, integrity, customer-centricity,
and a lot of hard work. It constantly questions old assumptions,
challenges bureaucratic thinking, and finds creative solutions to the
Filipinos’ most pressing banking problems. Whether it is creating
a new banking channel, introducing a revolutionary product or
service, offering greater financial access, or educating the public
on financial literacy, BPI uses the power of people and technology
to democratize financial access and make life easier for millions of
Filipinos around the world. For the next century and beyond, BPI will
continue to do what it does best: lead, innovate, drive, and realize
the highest aspirations of the people it serves. It will continue to be
a pillar and a partner, breaking barriers to banking and empowering
Filipinos with the right kind of information and access to help them
reach their goals for a better quality of life.
Ayala, Phinma sign joint venture
agreement on power generation
Two of the country’s largest conglomerates are joining forces to
augment the country’s power generation capacity.
Ayala Corporation, through its wholly owned subsidiary, AC Energy Holdings, Inc.
(formerly Michigan Power Inc.), and PHINMA Inc., through its energy arm, TransAsia Oil and Energy Development Corporation (Trans-Asia), recently signed a joint
venture agreement for the construction and operation of a thermal power plant
in Calaca, Batangas.
The joint venture company to be formed will be owned 50 percent by Trans-Asia
and 50 percent by AC Energy.
continued on p. 3
In the history of an industry, 160 years may be long, but BPI
is about more than just banking. It is there to be a beacon of
financial progress for the present and for future generations.
Taken in this context, 160 years is still young. There are still
many more doors to open, many more opportunities to pursue,
many more trails to blaze. And where the Filipino’s spirit of
innovation takes him, there BPI will be, leading the way for a
future of more and better choices, and a higher quality of
life for every Filipino—for the next 160 years, and even beyond.
continued on p. 4
The official publication of the Ayala group of companies Volume 15, Number 3, May-June 2011
JAZA visits Manila Water facilities
Ayala Chairman and CEO Jaime Augusto
Zobel de Ayala visited Manila Water
facilities on June 24. Accompanied
by MWC President Gerry Ablaza, and
group heads, Ding Carpio and Ruel
Maranan, JAZA visited the nearby Balara
Water Treatment Plant II, where 1.13
billion liters of water per day is treated to
make it potable for million of customers
in Manila’s east zone.
JAZA at the Tree of Learning
at Lakabayan Center, MWC’s
Visitor Center
JAZA also visited the Wellness and
Creativity Centers, which contain
murals that capture the history of the
company. He also passed by Balara
Pumping Station. The facility brings
water to certain areas of Manila east
zone to ensure adequate supply.
IMI receives Bosch Supplier Award
Integrated Micro-Electronics Inc. recently received
the Supplier Award from Robert Bosch in the
electronics manufacturing services (EMS) category.
The award was presented to Arthur Tan, IMI president
and CEO, during the Bosch Supplier Award 2009/2010
ceremony held on July 19, at Stuttgart’s Alte Reithalle in
Germany.
IIMI President and CEO Arthur Tan
receives the 2009/2010 Bosch Supplier
award. With him are President of
Corporate Sector Purchasing and
Logistics Karl Nowak, IMI European
Business Development Head Joseph
Pfister, Bosch Vice President for
Marketing
A total of 60 suppliers from 14 countries received an award
in one of seven categories. The Bosch award recognizes
companies that have performed particularly well in
manufacturing and supplying products or services over
the past two years— especially in terms of quality, pricing,
reliability, technology, and continuous improvement.
Tan said, “I am very proud to receive this award for IMI as we are
the only EMS provider to receive this honor from Bosch. It is a
testament to what a shared vision can achieve in spite of the
adversities, cultural differences, and challenges we all had to
overcome. “
IMI has been a supplier to Bosch for more than eight years in
diversified markets, which include automotive, industrial, and
consumer electronics.
JAZA with MWC President
and CEO Gerardo Ablaza, and
group heads Ruel Maranan
and Ding Carpio at Manila
Water’s Disaster Readiness
fleet equipment area
JAZA visits the Manila Water Balara
Filtration Part II
The Bosch Supplier Award is given every
two years. Winners are chosen from over
14 countries
JAZA visits the Balara
Wellness Center
Bosch is a leading global supplier of technology and services in
the areas of automotive, industrial, and consumer electronics. It
is celebrating its 125th anniversary in 2011.
Creating long-term
retail yield curve
In its latest fund-raising, Ayala demonstrated its flair for innovation
with a landmark transaction designed to raise long-term financing
from retail investors.
JAZA with MWC staff and
contractors at Balara
Pumping Station
Manila Water cited in Harvard Business Review
The Manila Water Company was recently cited in the Harvard Business
Review for its Tubig Para sa Barangay Program (TPSB). In a
dissertation by V. Katsuri Rangan, Michael Chu, and Djorjija
Petkoski, Manila water was noted for successfully launching
a business model that “benefit the company economically”
while “creating public value by improving people’s access to
clean, less expensive water.”
The article continues: “Manila Water, a private consortium, found
ways to connect more people in the city system, reduce the trade in
pilfered water, and brings costs down for millions of people.” According
to Rangan, the success of the program is primarily because of the
company’s ability to initiate a value-creation role for those living at
the base of the pyramid. He says, “Casting the people in the role of
consumers is often most appropriate in the low-income segment… when a
company view base-ofthe
pyramid residents as co-producers, it provides them with work and income.” In other words,
an effective business model should be one that allows the company to make money, but the
communities in which they operate must also benefit, if not financially, then by acquiring basic
services, such as access to clean water.
Since implementing the TPSB program, Manila Water has helped over 1.7 million people from poor
communities and continues to expand its operations in other areas.
Ayala on May 12 closed a 10-year bond offering amounting to P10
billion ($23 million) with multiple put options on the fifth year and
on the eighth year.
The bond structure provides two liquidity features, first through the
20 percent partial put option on the fifth year and subsequently the
100 percent full put option on the eighth year. This is to encourage
investors to invest beyond the usual five-year tenor, which is
considered their comfort zone.
“We could have priced the bond tighter and still achieved a successful
offering, but that would have changed the investor mix with more
institutional investors buying into the bond at the expense of retail
base,” says Ayala Treasurer Ramon Opulencia.
BPI Capital Corporation is the issue coordinator for the deal as a joint
underwriter, along with BDO Capital Corporation, Citicorp Capital
Philippines, First Metro Investment Corporation, HSBC, ING Bank
(Manila Branch), RCBC Capital Corporation and Standard Chartered
Bank.
The Philippine Dealing and Exchange Corporation (PDEx) has
approved Ayala’s application to list the bond, which the company
says shall widen the reach of price discovery and transparency for
the issue and enables participation across all markets on PDEx.
The deal was assigned the highest issue credit rating of PRS Aaa by
the Philippine Rating Services Corporation, reflecting Ayala’s strong
capacity to meet the financial commitment on the obligations.
The rating primarily considered Ayala’s highly diversified and
generally self-sustaining investment portfolio, consisting of leading
companies in various industries with relatively positive growth
prospects.
*Excerpt lifted from the article “Creating long-term retail yield-curve” by Chito
Santiago published in the May 2011 issue of the Asset
Feature
Globe Telecom hosts 20th SingTel
Regional CEO Forum
The leading CEOs and business leaders from the region, particularly the partners
of Singapore Telecom (SingTel) recently came together during the 20th SingTel
Regional CEO forum held in Makati Shangri-La Manila. Hosted by Globe Telecom,
an Ayala and SingTel affiliate, the forum brought together over 40 business leaders
of the SingTel Group to discuss growth strategies and region-wide competitiveness.
This was the first time for the event to be hosted in the Philippines. In attendance
were the SingTel executives led by Group CEO Chua Sock Koong and SingTel CEO
International Hui Weng Cheong, and Globe executives led by its Chairman Jaime
Augusto Zobel de Ayala and President and CEO Ernest Cu. “It was truly an honor
for us to host the SingTel CEO Regional forum here in Manila. It was an exciting
opportunity to engage our SingTel partners and top leaders who brought many
innovative business insights and perspectives into the forum,” said Cu.
The forum was an opportunity for the decision-makers to share ideas and learn from
each other by understanding the changing markets in the Asia Pacific region. It was
also aimed at further developing a sustainable competitive advantage for SingTel by
harnessing the collective strength and capabilities of each member of the group.
Ayala, Phinma sign joint venture
agreement on power generation
continued from p.1
The 135-megawatt power plant will employ the environment-friendly circulating fluidized bed
boiler technology. Total project cost may reach approximately P12 billion and will be financed by a
combination of debt and equity. The plant is expected to start commercial operations by mid 2014.
According to PHINMA President and Trans-Asia Vice Chairman Ramon Del Rosario Jr. “We are glad
to be partnering with the Ayala group in this joint venture project. We look forward to leveraging
each other’s strengths in developing and running a modern and environment-friendly facility that
will contribute to the country’s power supply generation through conventional source using clean
technology.”
For his part, Ayala President and Chief Operating Officer Fernando Zobel de Ayala said, “This project
is part of our strategy to build a portfolio of power generation assets that combines conventional
and renewable energy sources. This project will help contribute to building the much needed base
load capacity to meet the growing demand for power in Luzon. This is simultaneous to our efforts to
contribute in the development of alternative energy sources.”
Ayala, through AC Energy, recently formed several joint venture agreements to develop solar and
mini-hydro power projects across various sites in the Philippines. It also recently acquired a 50percent stake in Northwind Power that operates the wind farm in Bangui, Ilocos Norte.
Trans-Asia, through its wholly owned subsidiary, Trans-Asia Renewable Energy Corporation (TAREC)
has aggressively pursued the development of renewable energy and has been awarded service
contracts with potential wind capacity of 350 MW, making it one of the largest wind developers in
the country today.
ING Bank N.V. acted as financial advisor to Trans-Asia in the transaction.
Participants of the 20th SingTel CEO Forum
JAZA with SingTel
Group Head
Chua Sock Koong
during the event
Globe President and
CEO Ernest Cu : It
was truly an honor
for us to host the
SingTel CEO Regional
forum here in Manila
(From left) Ayala executives Gina Oris, Eric Francia, Delfin Gonzalez, Ayala Chairman and CEO JAZA,
Vice Chairman of Trans-Asia Ramon del Rosario Jr., President and CEO of Trans-Asia Francisco L.
Viray, and CFO and Treasurer of Trans-Asia Roberto Laviña
Ayala companies earn “platinum” for good
corporate governance practices
Five Ayala companies led by parent company Ayala Corporation
were ranked Platinum awardees in the Institute of Corporate
Directors (ICD)’s 6th Annual Corporate Governance Scorecard for
Publicly Listed Companies.
is the first time that the ICD has bestowed Platinum awards to
companies that have garnered Gold awards for at least three
consecutive years.
Network on improving actual boardroom practices in the
Philippines. ICD is a founding member and permanent
secretariat of the Institute of Directors in East Asia Network.
Ayala Corporation, Ayala Land, Globe Telecom, Manila
Water Company, and Cebu Property Ventures Development
Corporation were all given Platinum awards at the ICD
Annual Dinner held on May 25 at the Peninsula Manila. This
Explained ICD Chairman Jesus Estanislao: “Platinum awardees
carry the distinction of being the very best companies in
terms of corporate governance compliance and which we
believe are very well disposed to move beyond compliance
and into higher levels of corporate governance standards and
practices observed globally.”
For the last six years, ICD’s Corporate Governance Scorecard
has been used by publicly listed companies as a tool to
rate and benchmark their corporate governance practices
relative to global and regional standards. The project is jointly
administered with the Securities and Exchange Commission,
PSE, Institute of Internal Auditors of the Philippines, Ateneo
Law School, and Center for International Private Enterprise.
All eight listed companies of the Ayala group made it to
the Top 20 scorers of the 2010 Corporate Governance
Scorecard.
Ranked in the Gold category were Cebu Holdings and
Integrated Micro-Electronics, a new entrant to the ICD
Scorecard Project after listing by way of introduction in the
Philippine Stock Exchange last year. Both companies scored
95 percent or above in the governance scorecard.
Ranked in the Silver category with the rating of 94.9 percent
was Bank of the Philippine Islands.
A non-stock, nonprofit organization, ICD works closely
with the Organisation for Economic Co-Operation and
Ayala group senior executives receive their companies’ respective
Corporate Governance Scorecard Awards from the Institute of Corporate Development (OECD), the Global Corporate Governance
Directors on May 25
Forum, and the International Corporate Governance
The scorecard ranks publicly listed companies in the areas of
shareholder rights, equitable treatment of shareholders, role
of stakeholders in governance, disclosure and transparency,
and board responsibilities—key governance principles used
as basis for corporate governance practices globally.
The awards were received by senior officers of the Ayala
group led by Ayala senior counsel Mercedita Nolledo;
Ayala general counsel Solomon Hermosura; presidents
Gerardo Ablaza, Jr., Antonino Aquino, and Francis
Monera; CFOs Jaime Ysmael, Albert Larrazabal, and Luis
Juan Oreta; BPI senior executives Antonio Paner and
Myra Sylienteng; and IMI controller Jaime Sanchez.
The official publication of the Ayala group of companies Volume 15, Number 3, May-June 2011
Trailblazers
Throughout the history of BPI, a few exceptional
personalities have stood out to shape it into
what it is today. Here are some of the unique
individuals who paved the way for what the
banking industry is today.
It was through Antonio de Urbiztondo
that the first bank in Southeast Asia,
the Banco Español Filipino de Isabel II,
was established
Antonio de Urbiztondo y Eguia
Antonio de Urbiztondo y Eguia was the acting
Governor General of the Philippines from July
29, 1850, until December 20, 1853. His term of
office was characterized by many administrative
innovations but he was mostly known for issuing
a decree that finalized the establishment of Banco
Español Filipino de Isabel II on August 1, 1851.
Three years after his term, Urbiztondo was called
back to Madrid to become Spain’s new minister of
war.
Jose Maria Tuason and Fernando Aquirre
Jose Maria Tuason was the first manager of Banco
Español Filipino de Isabel II. Appointed alongside
Fernando Aguirre by Gov. Gen. Urbiztondo, the
two took turns serving as managing director
every year.
Jose Maria Tuason came from a
family of merchants. He, along
with Fernando Aguirre, was the
first appointed manager of the
bank
Antonio de Ayala
Antonio de Ayala is one of the directors chosen
for the interim-board of Banco Español Filipino de
Isabel II. He was also the founder of Casa Roxas,
which later on came to be known as Ayala y Cia,
the precursor of today’s Ayala Corporation.
Antonio de Ayala was appointed
to represent the Filipino business
community. He was also one of the
first chosen board members for Banco
Español Filipino de Isabel II
First depositor
On May 1, 1852, the bank issued a promissory
note of P10,000 to its first banking client, Tadian,
a Chinese businessman. Tadian was endorsed
by fellow Chinese, Valentin Guidoti. Three days
after issuing a promissory note, the bank received
its first deposit of P3,000 from a man named
Fulgencio Barrera.
First Bank of Southeast Asia
In the middle of the 18th century, the Philippines was
reaping the benefits of increased trade as more and
more business firms set up offices in Manila. With the
formal opening of the city to the international commerce,
demand for agricultural production grew, and the need
for a suitable financial institution became a matter of
public concern. So much so that in 1828, reigning ruler
of Spain, King Ferdinand VII, issued a decree mandating
the establishment of a public bank in the Philippines.
the end of the 1860s, a series of political and economic
events altered the personality of the bank.
However, it was only in August 1851 that Antonio
de Urbiztondo y Eguia, then governor and captain general of
the Philippines, was able to obtain approval
for the bank’s statutes and by-laws from the Junta de
Autoridades. The bank was named El Banco Español
Filipino de Isabel II, in honor of Isabella II, queen of
Spain and daughter of formal King Ferdinand VII.
Urbiztondo also issued a decree appointing the
bank’s board of government. Part of the board were
Jose Maria Tuason and Fernando Aguirre who
took turns serving as managing director every
year. Antonio de Ayala of Casa Roxas, precursor of
Ayala y Cia, was also named to represent the business
community of Manila.
In 1868, Queen Isabella II was dethroned, and a year
later, the bank officially dropped her name and came to be
known as El Banco Español Filipino. In the same year, the Suez
Canal was opened to shipping and gave an added boost to
the country’s expert trade. The bank was more conscious
of the ongoing related developments and had greater
involvement
in the financing of export crops.
At the close of its 25th year in 1877, El Banco Español
Filipino had adequate proof of its growth, posting an
increased return of investors and a sizeable capital in
its annual report. By then the bank’s notes also gained
widespread acceptability, earning the bank good
standing.
By the 1880s, the bank had established relationships
with Banco de España, the Banco Hispano-Colonial, and
the Comptoir d’Escompte de Paris, thereby broadening
its exchange operations.
In 1887, the bank’s shareholders decided to move its
office site to Binondo, which at that time was
the new center of business growth. However, it wasn’t
until January 1892 that the bank was able relocate to
No. 4 Plaza Cervantes in Binondo on land
acquired from the Dominicans.
Before the bank could begin to function, the board
commissioned a special committee to choose an
appropriate office site. Through the committee’s
recommendation and the board’s approval, it was
decided that the bank be built within the Royal Custom
House or Aduana in Intramuros.
The bank was given exclusive privilege to issue paper
money, which antedated the currency-issuing authority of
the post-war Central Bank of the Philippines by about a
hundred years. The original bank notes were collectively
called pesos fuertes, Spanish for “strong pesos.”
The establishment of El Banco Español
Filipino de Isabel II was met with challenges. For most
people, banking had little relevance to their daily lives,
while those who were interested in acquiring equity did
not have the funds to do so. In the end, the initial few
who took interest and invested in the bank were mostly
represented in the board.
On May 26, 1895 the bank filed a petition to the
Central Government in Madrid to build its first branch
in Central Luzon. But despite a record of successful
operations, it took two years before the bank attained the
court’s approval.
Finally, on March 15, 1897, the bank inaugurated
its Iloilo branch. At that time Iloilo and Panay
overshadowed Central Luzon in terms of economic
prominence, which became a key element in the choice
of locale for the bank’s first branch. Like the transfer to
Binondo, the establishment of the Iloilo branch was a
profitable move.
Living History
The first bank notes in the Philippines
had the issue date May 1, 1852 and could be redeemed
in Mexican coins in gold or silver. Apart from carrying
the name of the bank as issuer of the currency, the
bank notes also bore the portrait of the woman after
the bank was named—Queen Isabella II.
The bank was limited to deposits, loans, and discounts. Yet
despite its operations being restricted to the most basic
of banking functions, prudent management enabled the
bank to declare a six percent dividend in 1853.
From 1863 to 1883, the bank enjoyed a time of progress
mostly because of increased resources and greater
administrative autonomy from the state. After winning
over the subscribing public, the bank decided to
increase its capital by issuing new shares. But toward
The bank’s first-owned office building on Cabildo
and Victoria Streets in Intramuros, circa 1862
The BPI Timeline
For 160 years, the Bank of the Philippine Islands survived the ravages of war and
the tyranny of many governments to emerge a stronger and more stable financial
institution. Throughout its history, it has pioneered many projects and marked
numerous milestones, and today, BPI is the leading bank in the Philippines. Despite the
years, BPI continues its journey with the values upon which it was founded still intact;
and as it continues moving forward, BPI will always make it a point to make banking
easier for Filipinos worldwide.
1828
Beginning of Philippine banking.
King Ferdinand VII of Spain
issues a decree mandating the
establishment of a public bank
in the Philippines
Feature
In December 1898, through the Treaty of Paris, the SpanishAmerican War ended, and Spain ceded the Philippines to the
United States.
Under the helm of a new government and in the face of a
staggering economy, the bank had to go through several
changes. Apart from adopting a new organizational
structure, Banco Español Filipino also changed its name on
January 1, 1912, to Bank of the Philippine Islands (BPI), or
Banco de las Islas Filipinas.
Throughout the American occupation, the bank faced
numerous upsets. Sales of sugar and coconut fell, and with
the country’s premier exports all but frozen, there was
little money in circulation. Tight money and poor business
caused a great strain on the bank and its position became so
precarious that it seemed only a matter of days before the
institution would have to close its doors.
Monumental
milestones
Life became harder for the Filipino community and the
banking industry, until the return of the Americans in
October of 1944. By the end of the Japanese occupation in
1945, the country’s natural resources were already laid to
waste, its people starving, and its banking system barely
surviving.
A few months after the end of the Japanese regime,
on March 24, 1945, BPI had taken the first step toward
reopening. Not unexpectedly, given the conditions of the
times, the lack of operating funds was a major problem for
the bank. Meanwhile, the government had already taken
preliminary steps for the rehabilitation of the banking
system.
Despite the slow pace of the government, on March 11,
1946, BPI opened for business.
Things only started looking up in the middle of the 1920s
when goods began to move and a semblance of
normalcy returned to the marketplace. But the progress
was brief, as shortly after, during the 1930s, the United
States’ market became unusually volatile, as it entered
the “Great Depression.”
Lobby of the Cebu main branch. Today,
there are 31 BPI branches and ATM
centers in Cebu
BPI and its three branches located in Iloilo, Zamboanga, and
Cebu were severely affected. Nonetheless, the bank kept
afloat by seeking the assistance of friends, and providing its
employees with extra cash monthly, much like today’s cost
of living allowance.
1851
The Junta de Autoridades, led
by Antonio Urbiztondo y Eguia
approves on August 1st the
statutes and by-laws of El
Banco Español Filipino de Isabel
II, which was in honor of Spain’s
Queen Isabella II
The Aduana otherwise known as Intendencia
or Customs House was built in 1823 under
the supervision of Tomas Cortes. The building
was completed in 1829 and northwest
wing became home to El Banco Español
Filipino de Isabel II. It was later damaged by
the earthquakes of 1863, 1869 and 1872. It was
finally reconstructed in 1874, only to be
damaged again in the Japanese-American
War in 1941, and at the end of the Japanese
Occupation in 1945.
During the annual meeting of the bank’s
shareholders in 1887, they decided to relocate
the bank’s office headquarters to Binondo,
which by then emerged as the center of
growth and commerce. However, it was only
in September of 1891 that the bank finally
concluded an agreement with the Dominican
Friars and purchased their property at
Number 4, Plaza Cervantes. They moved to
Plaza Cervantes on January of 1892.
Despite the economic difficulties of the 1930s, the country
still prepared for its forthcoming independence from the
United States. In the second half of the 1930s, more foreign
banks came in, thereby expanding the local banking
community. But insofar as the Bank of the Philippines was
concerned, the entry of new banks curtailed its competitive
edge in certain areas abroad.
By the latter half of September 1944, the bank had drawn
up specific measures which would safeguard people and
records. As an extra precaution, several copies were made
and kept separately in different places. A set of copies were
even sent to then bank director Alfonso Zobel. By the last
week of the month, events turned for the worse, and the
man office lost connection with all three of its branches.
Original office
in Intramuros
Original vault
in Plaza Cervantes
The Philippines being an American colony, the Great
Depression had a huge impact on the Philippine economy,
and with commodity exporters and traders immobilized
by the economic slowdown, the banks were once again
subjected to fiscal pressures.
The 1940s was marked with even greater challenges as
the country braced itself for another invasion. When the
Japanese empire attacked Pearl Harbor on December
8, 1941, the inevitable retaliation of the American forces
launched an all out war against Japan. In January of 1942,
the city of Manila fell to Japanese troops.
The history of BPI is filled with numerous
milestones. But there are only a few that
truly marked the beginning of future
innovations.
The bank’s vault was relocated in 1891 to
Plaza Cervantes
First branch in Iloilo
In December 1898, through the Treaty of Paris, the SpanishAmerican War ended, and Spain ceded the Philippines to the United
States
After transferring to Binondo, business
increased and profits improved substantially
that on May 26, 1894, the bank filed a petition
for an extension franchise of 25 years and
for it to establish another branch in Iloilo.
Unfortunately, despite a record of successful
operations and strong local support, the bank
did not get approval until February 1896.
Finally, on March 15, 1897, the
bank inaugurated its Iloilo branch,
thereby laying the cornerstone of an
interlinked system of provincial branches.
1852
El Banco Español Filipino de Isabel
II issues pesos fuertes, the first
bank notes; records first bank
transaction, a promissory note
from a Chinese client on May 1st,
and first deposit from Fulgencio
Barrera on May 4
1862
El Banco Español Filipino
de Isabel II acquires its
first-owned head office
on Cabildo and Victoria
streets in Intramuros
The official publication of the Ayala group of companies Volume 15, Number 3, May-June 2011
Major Banking
Breakthroughs
BPI has introduced groundbreaking innovations
to become one of the leading banks in the country.
From being the first bank of Southeast Asia to
launching the first 24-hour banking ATM system in
the Philippines, BPI has never stopped
introducing new innovations to make life easy for
its consumers.
19th century
1851
Bank of the Philippine Islands was established as the first bank in the
Philippines and in Southeast Asia
1852
Issued first paper money
1887
Financed first train service
1890
Financed first telephone system
1895
Financed first electric power utility
1897
Opened first branch in Iloilo
1999
Financed first steamship service
in the Philippines
The Iloilo branch office,
the very first provincial
bank branch in the
country, inaugurated
in 1897
20th century
1983
BPI introduced 24-hour banking in the
Philippines with the Express Teller card
and ATM
1987
BPI introduced the first debit card system
for cashless shopping with the Express Payment System (EPS)
1990
ExpressNet, the country’s first ATM network, was launched, with BPI and BPI
Family Savings Bank as initial members
1991
BPI introduced Express Phone, the
Bank’s phone banking facility
1994
Express Teller International cardholders
were given access to American Express
and Cirrus ATMs
1996
Check-Free Payments (now called
Bills Payment) was introduced to Express Teller cardholders
1996
BPI rolled out banking kiosks and
Express Banking Centers
1998
BPI launched BPI Call Center (89-100),
the bank’s one calling number
Bigger, Faster, Stronger
The beginning of the 1970s was a politically
and economically volatile period. On the
international level, several countries had
experienced currency devaluations. In addition,
the price of petroleum products was threatening
to skyrocket, leading to the oil crisis in late 1973.
Meanwhile, the Philippines faced a significantly
reduced demand for its exports, particularly
copper, copra, and lumber. The country was hit
by a number of destructive natural calamities,
including typhoons, flooding, and drought. Most
significantly, there was growing political and
social unrest all over the country, leading to the
declaration of Martial Law in 1972.
Still, BPI found a way to shine, no matter how dark
the times. As the Ayala group’s banking flagship, BPI
introduced a number of innovations that proved pivotal
to the development of the banking industry in the
Philippines.
To help the banking sector become “more responsive to the
requirements of economic development,” the government
made amendments on the General Banking Act and the
Central Bank Act before the end of 1972.
BPI was the first to respond to these amendments.
In 1973, BPI shareholders approved the increase of
its authorized and paid-up capital, making it the first
domestic bank to meet the minimum paid-in capital
base requirement. BPI shareholders also declared its
openness to two possibilities—merging with a private
domestic bank, and inviting an international bank to
take a minority participation.
In 1974, BPI merged with the Peoples Bank and Trust
Company (PBTC), with the support of US-based
Morgan Guaranty Trust Co. (now JP Morgan Chase)
merged with and into the Bank of the Philippine Islands.
By the end of the year, BPI posted assets worth
P1.7 billion, a deposit base of P1 billion, and net profit of
P39 million. In addition, its branches grew from 29 to 47,
located in strategic cities and towns all over the country.
in 2000, considered one of the biggest mergers and
acquisitions in Philippine banking history; DBS Bank in
2002; Prudential Bank in 2005, and the ING insuranceinvestment management businesses in 2010.
BPI’s entry into the international scene was another
landmark for both the bank and Philippine banking history.
Together with Ayala Corporation and five private banks,
BPI opened the Asian International Bank in New York City
in 1980—making it one of most significant efforts of a local
bank to go global. In the same year, BPI opened Island
Development Bank in Brunei, marking its entry in the
Southeast Asian banking arena.
BPI’s banking commitment went well beyond assetbuilding
and geographic expansion; in fact, the bank’s deeper
commitment lay in introducing products and services that
would greatly benefit its clients offering security, stability,
and convenience.
As early as 1982 BPI became a universal bank—an
institution that offers both commercial and investment
banking services. It was also the year when BPI introduced
its first automated teller machines. But more than just
introducing the machines, BPI made sure that its ATMs are
accessible 24 hours a day, seven days a week—the first of its
kind in the country.
Other innovations include the BPI credit card (1986) and
debit card (1987). In 1999, realizing the possibilities for
growth and service improvement that the Internet offered,
BPI launched the Internet-based BPI Express Online.
In addition, BPI’s acquisition of Ayala Corporation’s
insurance business in 2000 made the bank the country’s first
bancassurance firm.
Because of these innovations, BPI virtually eliminated the
inconveniences that used to characterize the banking
system—long lines and hours of waiting for even the
simplest of transactions. With these services, BPI effectively
catapulted the banking system to the 21st century—
bringing to Filipinos the high-quality services that they truly
deserved.
After PBTC, BPI acquired the following: Commercial Bank
and Trust Company in 1981; Ayala Investment and
Development Corporation in 1982; the Family Bank and
Trust Company in 1985, leading to the establishment
of its savings subsidiary, BPI Family; Citytrust Banking
Corporation in 1996; Far East Bank and Trust Company
The former BPI building on Ayala Ave. corner Herrera was
constructed in 1966 and housed its central headquarters
1897
1869
El Banco Español
Filipino de Isabel
II takes on a new
name, El Banco
Español Filipino on
September 3
1892
El Banco
Español Filipino
relocates to
No. 4 Plaza
Cervantes in
Binondo
The Iloilo branch, the very first
provincial bank branch in the
country, inaugurated in 1897
1898
El Banco Español Filipino
is no longer the property
of Spain, after Spain
ceded the country to
the United States
Feature
1999
A Truly Filipino Institution
Even as a growing number of our Filipino brothers and
sisters become “global” citizens, they continue to keep
strong ties with the country. Each has his or her own
reason for leaving, but one thing is certain: home—the
Philippines—remains close to their hearts, and they will
always have a reason to stay connected to the country.
At present, there are between nine and 11 million overseas
Filipinos (OFs). They are in constant need of financial
services that will ensure their hard-earned cash reaches
their loved ones in the Philippines. It is for this reason that
BPI takes the extra mile in providing innovative, convenient,
and secure financial services for OFs, wherever in the world
they may be.
The BPInoy program caters to the needs of OFs, by
providing them with a convenient, inexpensive, and legal
channel to send remittances to their loved ones. Over
the years, BPI remittance centers have been established
in Hong Kong, Italy, Spain, the United Kingdom, and the
United States. The response to BPI’s remittance service has
been staggering. For many years it has been the remittance
service of choice of most OFs, and it is the first commercial
bank to be elevated to the hall of fame of the Bangko
Sentral ng Pilipinas for remittance service.
But more than just providing remittance services, BPI seeks
to recognize the sacrifices of OFs, and providing them and
their families opportunities for growth. Thus, it established
the BPInoy Awards, which recognizes successful global
Filipinos who can serve as role models for OFs; the BPI Expat
Pinoy Awards, which honors exceptional students who are
the pride and joy of their OF parents; and various finance
management and entrepreneurship programs for both OFs
and their families, to help them invest their earnings wisely.
Even as it expands its reach across the globe, BPI remains
committed to serving the country. In fact, it has gone
beyond the roles that a traditional bank is expected to
take—particularly now that it integrates the principles of
sustainability into its business, as manifested by its social
innovations that address the needs of Filipinos living at the
base of the socioeconomic pyramid, and its environmental
initiatives.
21st century
2000
BPI Direct is launched, the
Philippines’ first phone and
Internet bank
to serve the banking and finance needs of low-income
groups. It is a fact that many Filipinos will have access to
cellular phones but not to banking services; by using the
mobile phone as a banking tool, Filipinos can be served by
a financial institution in a safe, convenient, and inexpensive
manner. After just a year, the response to BPI-Globe
BanKO has been overwhelming. It now has six branches
nationwide, has reached out to 40 microfinance institutions
that, in turn, reach out to 200,000 clients; and has lent out
P1.2 billion in loans for micro-entrepreneurs. In effect, the
mobile phone has also become a symbol and a tool for
financial empowerment.
In recent years, the challenges posed by climate change and
environmental destruction have been mounting, and there
is no denying that business institutions have to actively
contribute to efforts toward reducing environmental
impact. One of BPI’s initiatives toward this end is its entry
into sustainable energy financing (SEF). In partnership with
the International Finance Corporation, BPI introduced its
SEF program by showing business organizations, whether
big or small, how sustainable energy sources can benefit
their business operations. Through the “SEF Masterclass”
series, BPI convinces companies and small businesses that
turning green is not only good for the environment, but
good for business as well.
It is also a strong love of country that motivated BPI to
establish BPI Foundation in 1978. By establishing and
maintaining partnerships with both the public and private
sector, BPI Foundation develops and implements programs
in entrepreneurship, education, and the environment.
Locally or internationally, across all socioeconomic
groups, BPI continues to affirm its unwavering
commitment to the Filipino. Time and again it has
proved its willingness to go beyond the imperatives
of business to empower the Filipino—and to uplift his
spirit.
In 2010, BPI partnered with Globe Telecom to establish BPIGlobe BanKO, a bank that uses mobile-phone technology
BPI opens its first remittance bank in Madrid to assist
overseas Filipinos
1912
El Banco Español Filipino
changes its official name to
Bank of the Philippine Islands
(BPI), or Banco de las Islas
Filipinas; the second branch
opens in Zamboanga
BPI introduced Express Online, the
Bank’s online banking facility
BPI introduces WAP Banking, an
alternative way to access Express
Online using WAP/GPRS technology
BPI launches BPI Trade, the Bank’s
online, real-time stock trading facility
BPI introduced BPI Express Cash
Card which allowed cardholders to shop, dine, drink, and party in
around 20,000 establishments
nationwide
2001
Express Prepaid is launched,
allowing Express Teller cardholders
to reload prepaid cellphones using
the ATM
2003
BPI introduced the Express Deposit
machine (now called Cash Accept
Machines [CAMs]). Cash deposits
done through the machine are
credited real-time
BPI introduced the SMS-based
Express Mobile, the bank’s mobile
banking facility, using Globe SIMs
2005
BPI introduced the menu-based
Express Mobile using Globe SIMs
2009
BPI introduced the menu-based
Express Mobile using SMART SIMs
2011
BPI introduced Mobile Mall, a
mobile phone app used for
purchasing goods and services
BPI launched Investments
Online, the bank’s full-service online
investment facility
2011 BPI Family Savings Bank
launched www.bpiloans.com, the
bank’s consumer loans facility
Through BPI’s 24/7 banking system,
customers can attend to their banking needs
any time they want
Many of the inconveniences that characterized the old banking
system were eliminated through the many innovations of BPI
1924
1957
The Bank of the Philippine Islands
opens its third branch in Cebu
1945
BPI resumes banking
operations after
World War II
BPI constructs the
new seven-story
head office on Plaza
Cervantes, and
inaugurates in 1959
The official publication of the Ayala group of companies Volume 15, Number 3, May-June 2011
BPI Investments
Online: Another First
After 160 years, the Bank of the Philippine Islands
affirms its commitment to its leadership by
introducing another innovation to the banking
industry.
Just last April, over 300 guests witnessed the launch
of BPI Investment Online, the country’s full-service
online investment facility.
BPI Chairman Jaime Augusto Zobel de Ayala, who
welcomed guests to the event said, “I am very excited to
share with you tonight another first in the local banking
industry—revolutionizing the way that you grow and
manage your investments from hereon. I, for one, have
taken a personal interest in updating myself with this
new internet technology, and I hope that you will share
the same excitement that I have in being adept in its
use.”
With BPI Investments Online, clients can now
enjoy the convenience of initiating investment
transactions through the Internet quickly,
inexpensively, and virtually anytime, anywhere.
Clients can now access portfolio information,
explore further investment opportunities,
subscribe to additional funds, redeem
investments, and make regular contributions
via the regular subscription plan at their utmost
convenience.
“With the onset of our 160th year in serving Filipinos,
we are staying true to our tradition of leadership and
technological innovation,” said BPI President Aurelio
Montinola III. “We continue to remain relevant and
even one step ahead as we move toward technology
that will make it easy for our clients to make their
money work for them.”
Senior Vice President Maria Theresa Marcial-Javier,
group head and chief investment officer of BPI
Asset Management, added: “We’ve migrated our
investment facility online to take advantage of
Internet technology that will empower our investor
clients to transact anywhere at any time at their
convenience. This frees up more of their precious
time that could be spent on other important business
agenda or with their families. Truly, growing and
managing investment funds are easy with BPI Asset
Management.”
To find out more about BPI’s Investments Online
Facility and its services, interested parties may visit
www.bpiassetmanagement.com, or visit any BPI
branch near you. Clients may also log on to www.
bpiexpressonline.com
Still Ahead
After 160 years, the Bank
of the Philippine Islands
continues to play a critical
role in the country’s finance
and banking sector.
With a workforce that is over
12,000-strong, BPI serves the
finance and insurance needs of
individual and corporate clients
all over the country and in key
locations abroad.
With total assets estimated at
P875.15 billion, and managing
funds reaching P1.21 trillion, BPI
remains one of the biggest banks
in the country, and one of the most
trusted, with its long history of
stability, foresight, and innovation.
At present, it has 581 branches
in virtually all of the country’s
geographic regions.
Despite being in the industry for 160 years, BPI is ahead when it comes to banking innovation, and
continues to grow as a world class financial institution
Its international presence has also helped make BPI a trusted name for the banking and remittance needs of overseas Filipinos.
BPI now has 23 remittance centers in Europe, the United States, and Asia. BPI’s wholly owned subsidiary, BPI Direct Savings,
services the online banking needs of Filipinos anywhere in the world.
A long and colorful story that is inextricably entwined with the history of the nation. A legacy of inventiveness and
security, ethical banking practices and superior customer service. In many ways, the Bank of the Philippine Islands is
still ahead of the pack in the banking industry—and still growing.
BPI OnCall: Financial empowerment for workers
The banking landscape is aggressively expanding from traditional banking services (basic money
safekeeping, basic credit cards, and loans) to include more sophisticated tools and offers such as valueadded deposit accounts, specialized credit and loan packages, new investment instruments, remittance,
bancassurance, microfinancing, and online banking.
Amidst this highly competitive landscape, the Bank of the Philippine Islands continues as the bank of choice for many,
capturing new bankers and acquisitions, and growing its customer base.
To make itself more accessible to people, BPI launched its “Let’s Make It Easy” campaign. The campaign hoped to make people
realize that financial responsibility can be done, and can be easy for everyone.
However, BPI recognized that a particular segment of the public needed more help in managing their funds. Ordinary workers
were sold on financial responsibility but was immersed in work life that left no room and no time to think about managing their
personal finances better.
As BPI champions financial responsibility at the institutional level, it also recognizes that financial literacy is a necessary
starting point for the country’s working classes, who need help in managing their money to make it work well for
their life goals.
BPI, through its OnCall campaign, enables the country’s largest economic engine—the working class—to get started on financial
wellness. The vision was to conduct a free financial literacy and wellness program for the working class. This “on-ground” program
is committed to visiting the workplace, so that financial inquiries and consultations become easy and accessible to the working
class.
(From left) BPI Chairman and CEO JAZA with SVP and BPI
Asset Management Group Head Theresa Marcial Javier, and
BPI President and CEO Aurelio Montinolla III
1969
Ayala Corporation becomes
the dominant shareholder,
with BPI becoming the
flagship financial services of
the Ayala group
1974
BPI has its first merger
with People’s Bank and
Trust Company
1981
1980
The BPI headquarters
moves to Ayala Avenue
corner Paseo de Roxas
BPI acquires
Commercial Bank and
Trust Company
Feature
The BPInoy Learning
Series: Fiesta and
Financial Education
Sustainability and the BPI Foundation
As a financial institution, sustainability has
been at the core of BPI’s operations and
values across its different programs and
services. In 1978, the bank institutionalized
its efforts toward sustainability and
corporate social responsibility through the
establishment of the BPI Foundation.
For over three decades now, BPI Foundation has
helped promote progress and development
through flagship programs in entrepreneurship,
education, and environment. BPI was the
first commercial bank to lend to microfinance
institutions through the BPI Foundation, and it has
also helped build micro-enterprises’ capacity
through learning sessions on basic financial
and credit management. These are developed
in partnership with the Department of Trade and
Industry’s Philippine Trade and Training Center
(DTI PTTC) and the Ateneo de Manila University.
BPI also invests heavily in science and technology
education, and has been empowering budding
scientists and researchers through the BPI-DOST
Science Awards, a prestigious program that is
now on its 22nd year and has awarded over 600
young scientists from 10 partner universities.
In partnership with various organizations, BPI
Foundation also runs programs that provide
scholarships, empower teachers, connect public
school students to the Internet, upgrade the
overall level of public education, and encourage in
students a deep love of learning.
commitment to energy and carbon emissions
reduction, BPI undertook a rooftop greening project
at the BPI Head Office in 2009, and invested resources
to replace its own chillers and lighting systems with
energy-efficient technology in 2010.
The 2011 BPInoy Learning Series is a continuing effort
of BPI’s Overseas segment to provide a venue for BPI
to reach out to overseas Filipinos (OF) and provide
them with the knowledge they need to take charge of
their future—from the basics of saving and financial
planning to managing their lives abroad.
To set the tone for sustainability reporting and
accountability in the Philippines, BPI in 2009
joined the rest of the Ayala group in publishing
the Philippines’ first set of sustainability reports, all
aimed at reporting standards and accomplishments
in the country’s search for a more socially and
environmentally conscious way of doing business.
BPI reinforces its leadership in the OF market by
providing value added services that go beyond
remittance. Through the BPInoy Learning Series,
BPI seeks to educate OFs that financial control is
possible even away from home through interactive
modules that teach participants how to save,
invest, and make use of available technology to
do banking transactions.
As a financial institution, as a corporate citizen,
and as an employer, BPI has demonstrated time
and again that its investments and efforts in
sustainability are important and critical to its
business.
The learning series gathers OFs and their families for
a day of fun and learning while also promoting the
bank’s products and services. The series provides
talks on financial issues such as saving and investing
and also features expert psychologists discussing
ways to handle long-distance relationships and
raising successful children.
BPI employees volunteer
in the different CSR
programs
BPI takes seriously its commitment to the environment,
and it has done so over the years through continuous
and sustained programs supporting environmental
causes. In 2010, BPI Foundation partnered with the
World Wildlife Fund for Nature (WWF) on a climate risk
adaptation project in Philippine cities most adversely
affected by climate change. The bank’s different units
also support recycling through the e-Donate Program,
which collects old computer parts and donates them
to technical-vocational schools that use them in their
projects. BPI Foundation and BPI employees have
also worked together to join International Coastal
Clean-up efforts in Manila and Cebu. The bank also has
various efforts that build on its own employees’ sense
of volunteerism and servant leadership, mobilizing
volunteers for programs such as Habitat for Humanity
and HandsOn Manila.
The BPInoy Learning series hopes to elevate BPI’s
program of value formation for the Filipinos working
abroad and their families in the Philippines. It
focuses on the members of Expat Pinoy families
and explore ways to help families discover their role
in the “dream” being sought by their loved ones
abroad—not only in handling the money being
remitted but also in becoming a useful partner in
securing their future together.
It is also a social event for BPI Expat Pinoy clients
and their beneficiary families, government agency
partners, corporate players, and the public in
general.
BPI launches the
financial literacy
program for its
customers
BPI promotes
different
environmental
activities for its
employees
The bank also has invested heavily in efforts to reduce
energy consumption and empower entrepreneurs to
achieve energy sustainability as well. In 2010, BPI, in
partnership with the International Finance Corporation
(IFC), launched the Sustainable Energy Financing (SEF)
Program, which extends loans to SMEs with innovating
sustainable energy projects. BPI continues to lead the
way with SEF with a number of enterprises already
availing themselves of loans to invest in sustainable
energy technology. Its portfolio is expected to reach
P5 billion in no time. And to demonstrate its own
For 2011, BPI is holding the BPInoy Fiesta. BPInoy will
bring the fiesta atmosphere to every place it visits,
allowing OF guests to learn and enjoy at the same
time. It features games, raffle prizes, entertainment,
and financial education, which is the main objective
of the learning series.
For OFs, the fiesta feeling is reinforced as they get
educated on the bank’s products and services and as
they realize that achieving their dreams—a house for
their families, education for their children, putting
up their own businesses, connecting with their loved
ones, and taking care of their finances wherever they
are—are easily achievable with BPI.
1996
1982
BPI acquires Ayala Investment and Development
Corporation, Makati Leasing and Finance Corporation,
expanding the bank’s portfolio and officially becoming
a universal bank. It also launches Express Teller, the
first 24-hour ATM service
BPI acquires CityTrust
Banking Corporation
1985
BPI acquires Family
Bank and Trust
Company
1986
BPI launches Express
Credit Card
The official publication of the Ayala group of companies Volume 15, Number 3, May-June 2011
10
Special Feature
12
The official publication of the Ayala group of companies Volume 15, Number 3, May-June 2011
Xavier P. Loinaz: A Visionary Mentor
Loinaz was mostly known for
his bold and daring vision. His
leadership marked the BPI’s
resurgence as a leading financial
institution in the Philippines
Many of the world’s greatest
corporations and brand names
are known not only for their
groundbreaking products
and services, but also for the
visionary minds that have
helped mold their cultures
of excellence. Xavier P. Loinaz,
president and CEO of BPI from
1982 to 2004, was one such
visionary figure. He was bold
and daring, demanding and
exacting—and his firm ways
often earned “bad press”—but
he steered BPI through some
of its greatest innovations and
cushioned the bank through
some of the most hard-hitting
financial crises in the country.
A graduate of the Ateneo de Manila University, with an Economics degree, and of
the University of Pennsylvania’s Wharton School, with an MBA in Finance, Loinaz
worked his way up the Philippine banking industry, starting as an executive
trainee at the Manila branch of First National City Bank (FNCB). The young,
hardworking Loinaz immediately made an impression and was next assigned by
FNCB’s International Banking Group in New York, handling key marketing accounts
in Southeast Asia and Guam. Loinaz quickly moved up FNCB’s ladder, next heading
“Loinaz was bold and daring,
demanding and exacting”
FNCB Finance as its president and CEO, and then becoming vice president of FNCB itself. After
this, he took over Feati Bank & Trust Company as its president and CEO, and then moved on to
become vice president of Citibank.
Loinaz’s entry into the Bank of the Philippine Islands, first as executive vice president in 1979,
then as president in 1982, marked the bank’s resurgence as a leading financial institution in
the Philippines. He steered the organization through many of its firsts—from the 24-hour
ATM, phone banking, Internet and mobile banking, to name a few—to its many mergers and
acquisitions. According to Loinaz’s successor, Aurelio R. Montinola III, “Xavier was the master of
“In BPI’s long and illustrious history,
the Loinaz years were marked by
groundbreaking innovation, rapid growth,
and stable leadership.”
mergers and acquisitions.”
Montinola also says of Loinaz’s work and leadership style: “Xavier saw risks where others didn’t.
Yet, he always believed that banking was a risk management business, and therefore there was
nothing wrong with being conservative. Time would prove him right every time there was a
crisis, and we have one every decade.”
In BPI’s long and illustrious history, the Loinaz years were marked by groundbreaking
innovation, rapid growth, and stable leadership. As the bank moves beyond its 160th year, it
will undoubtedly raise a lot of the Loinaz Rules to new heights, asserting its strength in new
fields and markets, proving time and again that constancy, prudence, innovation, and—above
all—vision are the keys to a history of excellence that grows stronger through the years.
Xavier Rules
The younger Montinola also saw in Loinaz a
mentor, someone whose “rules” had prepared
him for his own challenges in banking. He shares
eight “Xavier Rules” that have been instrumental
in keeping the bank solid and stable amid some
of the most turbulent banking years in the past
three decades:
1.
2.
3.
Although Loinaz’s methods were sometimes deemed exacting or unconventional, his years
of successful service have proven that his ways are efficient. Over the years, the BPI group has
come up with their own Xavier rules or quotes that they live by until today
4.
5.
6.
During his time, Loinaz helped BPI
reach greater heights through his
exceptional leadership and unique
vision
Loinaz led with much passion,
guided by his exemplary vision for
the company
2000
BPI introduces phone and Internet bank
through BPI Direct Savings Bank
7.
8.
2005
2002
BPI takes over operations
of DBS Bank Philippines;
FEB Mitsui Marine
Insurance Company
becomes BPI/MS
Insurance Corporation
Treat the Bank’s money as if it were your
own.
“Don’t wiggle”—make a rule then stick
to it, no matter what.
If you make an exception, you are either
making a new rule or a new precedent.
“I am paid to worry.”
If you have to make a people decision,
and you don’t have the best choice, pick
the best available and test him (or her).
If you are not ready to make a decision
(particularly on people choices), don’t.
If the markets are low growth, or organic
growth is slow, or both, buy or merge.
Constantly develop emerging markets
and innovate through technology.
BPI acquires Prudential
Bank and Trust Company
Bulletin
Aurelio R. Montinola III: Leadership of the Future
In the leadership duo that has helped to define
the Bank of the Philippine Islands in the past
few decades, Aurelio “Gigi” R. Montinola III can
perhaps be best described as the “Luke Skywalker”
to Loinaz’s “Obi-Wan Kenobi.” Having assumed a
leadership position in the Bank at the relatively
young age of 35, Montinola credits Loinaz for
having given him his two “biggest” breaks in the
1980s—first when he was appointed division head
of Corporate Banking, and again when he was
elevated to group head, also of Corporate Banking.
However, Montinola himself was no lightweight
and clearly deserved the roles. A graduate of
management engineering from the Ateneo de
Manila University, and a holder of an MBA from
Harvard University, Montinola joined BPI’s Private
Banking Unit as vice president in 1982 after a
successful stint in Citibank. A decade later, he took
over as president of BPI Family Savings Bank, and
held that position until taking over Loinaz’s position
in 2005.
It didn’t take long for the rest of the industry to
recognize Montinola’s leadership savvy. In 2006, he was
awarded the Asian Banker Leadership Award for the
Philippines (which he got again in 2010) and the CEO
Excel Award for Communication Excellence in Banking
and Finance.
A supporter of education and the arts, and a
firm believer in the power of people, Montinola’s
role became critical in following through on the
innovations pioneered by his predecessor. He
rallied unibankers around the bank’s “Let’s Make It
Easy” campaign and pushed the “Bank Anywhere”
program, shattering traditional banking barriers
and opening access to previously underserved
segments. Under his leadership, BPI extended loans
to microfinance institutions, leveraged on Internet
and mobile banking, and broke the concept of
home branch banking, which made banking truly
convenient for millions of Filipinos in the Philippines
and around the world.
According to The Asian Banker’s List of Leading
Practitioners, “Montinola led the bank through a
critical branch integration phase and various data
collection projects. While the end result of allowing
customers to bank from any branch may seem
pedestrian for more developed markets, it was
revolutionary in its time and pivotal in a country
made up of 7,000 islands.”
and elevating Philippine banking to a whole
new level. More significantly, BPI in 2010 won
the prestigious G-20 SME Finance Challenge for
the Sustainable Energy Financing (SEF) program,
its pioneering partnership with the International
Finance Corporation (IFC), that awarded loans
to SMEs for their renewable energy projects. The
year 2010 also saw BPI’s acquisition of the trust
business of ING Bank, N.V. Manila Branch—a rare
opportunity to purchase a strong foreign asset
management franchise—as well as the hugely
successful P10 billion stock rights offer of BPI.
BPI’s investment arm, BPI Capital, also led many
groundbreaking initiatives that have solidified
the Bank’s leadership position.
But for Montinola, such accolades are no
reason to rest on one’s laurels, but are further
motivation to strive harder and raise the bar
higher, providing banking solutions for a new
generation of clients that live and move in the
Information Age.
“A firm believer in the
power of people, his
role became critical
in following through
on the innovations
pioneered by his
predecessor”
An apprentice of
Loinaz, Montinola was
also gifted with the
same extraordinary
foresight. Some of
his groundbreaking
programs include the
“Let’s Make it Easy”
campaign and the
Sustainable Energy
Finance program of BPI
that competition can only dream of, with the
recognition of being the only bank backed [by
over a century] of experience and acknowledged
and affirmed by reputable international finance
rating agencies, we have embarked on a futuristic
journey that will take us to the next [decades] or
so and enable us to meet the demands of future
generations of customers and markets. We shall
stand like a rock in the present as we reach with
both hands for the future.”
While this man is in many ways rooted to the
ground and to his stakeholders, he is a true
Skywalker—setting his sights on the stars and
reaching for heights that no one imagined could
be conquered.
As Montinola himself had said to fellow
unibankers several years ago, even prior to his
assuming the role of president and CEO, “While
BPI has the reputation of being a conservative
institution in terms of value systems which can
never be replaced with techno-gizmos, we also
enjoy the tradition and the reputation of being
the trailblazer in many untried technological
territories. So while our conservativeness
has taken us to great heights and glories
It says further, “Under the leadership of ... Montinola,
BPI strengthened its existing consumer base
through cross-selling opportunities while reaching
out to markets segments such as SMEs and the
vast unbanked population through micro-finance
initiatives. He also grew the bank’s remittance
business, capturing more than 20 percent of the
country’s $17 billion remittance inflow.”
It was also under Montinola’s leadership that the
bank celebrated a landmark year in 2010, winning
various awards from different financial organizations
Montinola leads by example. He walks the talk and has served as an inspiration to many of his employees
2010
2006
BPI launches BPI
Express, a mini-branch
that combines the
benefits of electronic
banking , over-thecounter servicing, and
financial counseling
2007
Bank of the Philippine
Islands Europe, Plc.
opens in London
2009
Forms BPI-Philam Life
Assurance Corporation
BPI strengthens its
microfinance portfolio by
launching BPI-Globe BanKO, a
mobile microfinance savings
bank; acquires the trust and
investment management
portfolio of ING Bank NV
Manila; offers Yuan currency
passbook Savings and Time
deposit accounts
14
The official publication of the Ayala group of companies Volume 15, Number 3, May-June 2011
Employees share their fondest memories and
explain why for them, BPI, is the best.
B a n k a b le M o m e n t s
I was an admin assistant of Vice President
Rudy Caresma and he was truly the
biggest influence in my banking career.
His unceasing concern for people, both
in their personal and professional lives,
inspired me to become a better person.
— Gikgik Junsay
Through the encouragement of my peers
and the challenges that came with my job,
I got the courage to face my fears.
—Joy Acabado
As I was growing up, I saw how BPI helped
our family get through everyday life. I
can still remember my father holding the
phone close to his ears so he can hear
every detail the recorder relays to him.
—Marco Limlengco
As a staff member in the Training Department
years and years ago, I was sent to an
accreditation program, which was quite
expensive at that time. Coming from the ‘old
school’ mentality, as opposed to the ‘entitlement’
mentality of today’s generation, it never crossed
my mind that BPI would spend so much for the
development of its employees.
—Reena Dungca
BPI cares about a person’s well-being, so it
supports recreational activities like building
a sports club where one can develop oneself
while meeting other people who share the same
interests.
—Tei Banag
In BPI, I get to interact with real heroes—those
who serve our customers around the world and
those who help build our community through
financial literacy.
—Marvz Manubay
What I like about BPI is that it relentlessly
pursues being a better institution, striving
to improve its services and facilities in a
dynamic environment. Not only does BPI
think of serving its clients better but it is also
greatly concerned about the welfare of its
workforce.
—Jeff Esmabe
BPI believes that ‘age’ is not a measure of
maturity and an employee’s capability.
Using jumpstart training programs like the
Officership Training Program (OTP) and Sales
Management Training Program (SMTP), they
are able to hone the skills of new employees,
young as they are, to become better in their
own fields and to grow both personally and
professionally.
—Adrian Galang
BPI trains professionals, regardless of
their college degree, to become the best
bankers. I’m so thankful that BPI gave me the
opportunity to be part of their team.
—Albert Mananay Jr.
BPI is the only unibank in the Philippines
which offers management programs for
fresh graduates who have excelled in
their undergraduate or post-graduate
degrees. I am truly grateful for having
been one of the select few who have
undergone the Officership Training
Program (OTP).
—Bon Dampor
Essentially, being a part of BPI is already
an “unforgettable moment” because take
part in the bank’s rich history, reputable
name, and you are also assured of a
promising career path.
—Rose Anne Cruz
The most unforgettable part of my
Officership Training Program was when
I invited our president, Mr. Aurelio
Montinola III, to grace our graduation and
to my surprise he said yes.
—Shoji Meris
BPI adheres to the highest standard of
integrity, one of its core values, and it is a
reputation we are proud to carry beside
our name.
—Caribel Velete-Gallera
I can never forget the first time
BPI offered its car loan facility to
its employees. It was in the 1990s
when I availed myself of it and
got my first brand new car. The
joy it brought to my family was
immeasurable.
—Lita Dandan
Special Feature
BPI Then & Now
BPI has been the leader of innovation in
the banking industry for many years.
From creating new offices to better suit
the needs of the people, to inventing
new banking systems to make life easier
for its customers, BPI has evolved and
continues to evolve as the choice bank
for many Filipinos.
The BPI logo underwent many transformations. In 1852, it bore the face of its namesake, Queen Isabella II; over a
century later, the bank settled on a symbol that bore a tower on the left side and a lion on the right side of a shield
within a graphic representation of stone walls, capped by the heraldry of a crown. Each symbol is said to represent
some of the values upon which the bank was founded on loyalty, integrity, and honesty
The peso also took many shapes. The old bank
notes had the name of Queen Isabel II as its
imprint. Now, the new peso bills bear the
names of the country’s past Presidents and
heroes
BPI introduced many innovations in the
use of the credit card. Just like the BPI seal,
the BPI credit card also underwent many
transformations.
BPI will be celebrating its
160th year all month long in
August. To know more about its
latest innovative offering, and
cutting-edge event, be sure
to check out the next issue of
Ayala Now
Express Teller has gone through many evolutions. It was first launched in 1983 as the
first 24-hour banking system in the country
BPI built its first branch in Ayala in 1974.
Today, the BPI building is one of the
oldest landmarks in Makati
16
The official publication of the Ayala group of companies Volume 15, Number 3, May-June 2011
PhilDev Stand (Science and Technology to Accelerate National Development)
At the recent forum hosted by the Philippine Development Foundation (PhilDev) at Intercon, Makati City, the brightest minds from business, the academe,
and the government came together to discuss the challenges that have kept, or continue to keep, the country from realizing its full economic potential.
More importantly, the forum participants and resource persons discussed how innovation and entrepreneurship can help hurdle these challenges.
Illustrious speakers included PhilDev trustees led by Chairman Diosdado “Dado” Banatao—famous Silicon Valley innovator and pioneer who is passionate
about science and technology as a driver of economic development.
PhilDev panel discussions include topics on human capital development, initiating high impact entrepreneurship, developing ecosystem, innovation and industry
development and strategic areas of development in information technology, energy, life sciences and health
Ayala Chairman and CEO Jaime Augusto
Zobel de Ayala with PhilDev Chairman
Diosdado and wife Maria Banatao were
among those present at the event
In his talk at the forum, Banatao stressed the need to “disrupt all these imports
coming into the Philippines.” He explained: “If you look at our infrastructure –
whether it is communications, computing, transportation, and others, clearly
we are buying a lot of equipment and services that are way overdesigned for us
(yet) we pay for them. Half of these things we don’t even use. Why? Because it was
designed for another market—not specifically tailored for [Filipinos]. I’m not saying
that our requirements are low, it is whether the low
consumption population can afford it.”
Banatao shared this and other lessons he learned at Silicon Valley; valuable
lessons that can give local entrepreneurs an insight into the “...many
opportunities unique to the local market,” he said
For aspiring “technopreneurs,” there are five major start-up factors to take into
consideration The first factor is to make sure that the product or service addresses
a major market need. Second, the company should be able to come up with a
unique solution to the need. Third the solution can only be done through a sound
execution plan that is to be to be implanted by the fourth factor, a strong technical
and management team. Lastly, the endeavor must be bankrolled by strong financial
support.
Banatao also reminded stakeholders to work together. Universities must work with
government and vice versa. Research work by the academia must be “directed”
research; one that is supported by the government and is guided by specific
objectives. It is also the responsibility of the private sector to provide much needed
assistance.
Sheila Lirio Marcelo, PhilDev trustee founder and CEO of Care.com,
said, “We have the talent and resources, but we need to make long-term
investments specifically in science and technology education...to produce
quality researchers, scientists, mathematicians, engineers, and software
developers to be a competitive player in the global arena.”
Meanwhile, PhilDev Deputy Executive Director Rene Encarnacion said that the
PhilDev board is composed of “high-achieving Filipino Americans united by a
common passion to help the Philippines. PhilDev is a strategic philanthropic mission
to make a difference in the lives of millions of Filipinos.”
As proof of their commitment, the PhilDev board launched the PhilDev
STAND program (Science and Technology to Accelerate National
Development). Encarnacion added, “The establishment of an encouraging,
empowering ‘entrepreneurial ecosystem’ should tip the scales in our
favor. With grassroots focus on science and technology, more
heartening numbers should be realized.”
President Benigno Aquino III also believes that science and technology are
important factors in accelerating economic growth. During the forum, Department
of Science and Technology Secretary Mario Montejo delivered a personal message
from the President himself, relaying his sentiment that “science is instrumental in
achieving what we want to achieve.” In his message, the President said “A proper
focus on science and technology promises key results in poverty reduction,
economic growth, and climate change adaptation.”
In partnership with the Philippine government and with the support of the Aquino
administration, PhiliDev aims to help improve such critical areas as agriculture,
information technology, infrastructure, health, and energy.
Members of the Multi-Sectoral Alliance for Science and Technology (MAST) commit to work together for
science and technology and national development
PhilD ev launches MAST
As one of the highlights of the recently concluded Philippine
Development Foundation forum, PhilDev launched the Multi-Sectoral
Alliance for Science and Technology (MAST), which hopes to be the
vehicle for strategic, scalable, and sustainable programs that will
encourage innovations in science and technology. These innovations, in
turn, are expected to spur investments in enterprises that address the
global market.
Said PhilDev President Victoria Garchitorena: “We need the support of all in government,
academe, and the private sector to inspire all Pinoys out there to see this country move
forward—to see this country as a developed country.”
One of MAST’s first initiatives was the establishment of the Superfund for Science and
Engineering Scholarship. An ambitious target for this fund was set: to raise P5 billion in five
years.
Edgar Chua, president of Shell Philippines and private sector co-chair for MAST, affirmed
Shell’s commitment to improving science and technology in the country by pledging P100
million for PhilDev and PhilDev MAST’s superfund.
In addition, Vivienne Tan, executive vice president for marketing of Philippine Airlines,
pledged to donate 14 business class tickets to PhilDev. Seven Filipino scientists will get
the chance to fly to the United States to undergo training in science and technology, while
seven Filipinos based in the US will get to visit the Philippines to share their knowledge
and expertise.
PhilDev Chairman Diosdado Banatao talks about the need
to explore “opportunities that are unique to the local
market”
Ayala Foundation President Victoria Garchitorena discusses the
evolution of PhilDev and its focus on science and technology
A discussion on strategic areas for development was led by
DOE Sec. Rene Almendras
PhilDev trustees pay
President Aquino a courtesy call
The Philippine Development Foundation (PhilDev), represented by its trustees Dado Banatao, Ed Chua,
Vicky Garchitorena, Sheila Marcelo, and Winston Damarillo, paid President Benigno Aquino III a courtesy
call at Malacañan Palace on June 17. The courtesy call provided the PhilDev trustees an opportunity to
update the President on the developments in PhilDev’s STAND (Science and Technology to Accelerate
National Development) program.
Secretary Armin Luistro expresses the government’s optimism
for and support of PhilDev’s goals especially in ICT for
education
PhilDev Chairman Dado Banatao informed him that the foundation’s programs on ICT for Public Education—thin-client
computing and long-distance wi-fi—were moving forward with the full support and cooperation of the Secretaries of the
Department of Education, Department of Science and Technology; and Department Budget and Management. Chua, for his
part, informed the President on the launch of a P5 billion Superfund for Scholarships in Science and Engineering to be raised
over the next five years. These scholarships will complement those under the ERDT (Engineering Research and Development
for Technology) and the DOST. These are but two of the strategic programs that will enhance the country’s ecosystem for
science and technology that are considered critical for economic development.
The President reiterated the government’s support to the initiative and welcomed the partnership with the private sector,
citing the Multisectoral Alliance
for Science and Technology (MAST) as a good example of public-private partnership for development.
Also present during the courtesy call were DepEd Sec. Armin Luistro, DOST Sec.
Mario Montejo, and DOF Sec. Cesar Purisima.
IMI CEO Arthur Tan shares his thoughts on the importance of
science and technology especially in manufacturing for the
global market
Former EVP of AFI, Guillermo Luz shares the goals of the
Philippine Competitiveness Council
PhilDev, formerly Ayala Foundation USA, is a public charity registered with the United States Internal Revenue Service taxexempt organization. PhilDev focuses on building an ecosystem of science and technology-based entrepreneurship and
innovation for social and economic development in the Philippines. As part of PhilDev’s commitment to philanthropy, it
also generates products and services from the Philippines driven by innovative entrepreneurs focused on growth and job
reaction. It also wants to attain a sustainable and globally competitive Philippine economy by developing programs in
science, technology and entrepreneurship.
PhilDev board of trustees pays the President Aquino a courtesy call
The official publication of the Ayala group of companies Volume 15, Number 3, May-June 2011
A tunnel of hope and identity
18
Jaime Zobel’s images provide an uplifting and playful backdrop in Greenbelt’s tunnel. Photos of tunnel by Tom Epperson
What was once a short stretch of asphalt that takes one from Makati Avenue into the heart of
Ayala Center’s Greenbelt complex has long acquired a curious moniker for itself.
“Public art is fun,” JZA said at a past meeting with journalists. “There’s tremendous
freedom of expression involved, and it is so varied. There is so much to express in the
Filipino way.”
The “Zobel Tunnel,” called such by the jeepney drivers who have no doubt passed through its
lighted confines thousands of times through the years.
Indeed, there is the unmistakable verve and joie de vivre in the latest Zobel Tunnel
mural. In a way, it is almost full to bursting with Zobel’s latest artistic vision.
Curiously, the tunnel has become a destination in itself. Mall goers and pedestrians stop at
the curb to admire its wall and, inevitably, take a picture of themselves in the foreground.
From well outside the tunnel, you can spot the images of children at the beach. Leaping,
somersaulting, having the time of their lives. A moment of youth, energy, and happiness
caught by Zobel’s lens for eternity. To the left are the words: “Today, a somersault.
Tomorrow, a leap into their deams.”
What gives? The jeepney drivers got it right. The tunnel has become a gallery of sorts.
Shunning air-conditioned, sterile indoor confines, Jaime Zobel has chosen to share his
artwork with the world at large through this location.
Through the years, the Greenbelt Tunnel that now informally bears Zobel’s name has
showcased the beauty of nature captured by the lens of the Zobel patriarch. First came a
rendering of leaves, then butterflies in midflight.
This is a rarity for Jaime Zobel, who usually photographs nature. The artist-photographer
in him was moved by the frequent scenes of people at the beach. During one particular
jaunt in Mindoro, he spotted school children who were going from Talipanan Beach at
one end to White Beach at the other. “Some were running, others were splashing in the
water, and suddenly some started doing some somersaults,” he said.
“It all started years back when I kept passing by a rather dull, gray tunnel in Makati which busy
cars used to traverse, going from one mall to another,” JZA shares. “Since then, the tunnel has
sort of taken a life of its own…a venue which, hopefully, cheers up the passersby. Nothing more,
nothing less.”
Now, as part of the Bravo Filipino initiative that celebrates the Filipino spirit, the Zobel
Tunnel now holds up a mirror for all gaze into and see what makes us intrinsically
Filipino—a people with a flair for improvisation, fun, and being happy. This is something
we should never forget as we move into a beckoning future.
Cheering up the passerby is something ingrained in the famous “Ayala way.” Through the years,
open spaces are looked at as opportunities not to just afford a breath of fresh air, but to inspire,
to move, to drink in beauty—whether through natural elements or man-made elements.
Though known for being a patron of art and history—largely through the timeless institution
that is the Ayala Museum—the Ayala group of companies does not check its love for art and
beauty at the door.
But even as he leads us by the hand with the inspiring words on his mural, Jaime Zobel
leaves it to the viewer to connect with, and interpret, his creation.“Let passersby tell you
what it means to them.”
C E N T EX holds teacher-training p ro gra m
Ayala Foundation’s Center of Excellence
in Public Elementary Education (CENTEX)
held a “teacher-training institute” on May
25 to 27 in partnership with JP Morgan
Chase and Co. (JPMC).
This teacher-training program is part
of CENTEX’s mission to share and
disseminate “best teacher practices
and classroom technologies.” JPMC’s
participation in the project was in
line with the company’s employee
volunteerism program.
Serving as the resource speaker at the
training program was Lirio OngpinMapa, vice president of the Center for
Leadership and Change. One of the
things she stressed with the teachers
participating in the training program
was the importance making values
integration a part of their teaching.
The teachers, in turn, shared their
realizations with the rest of the group,
especially with regard to how they could
share their personal values with their
students.
JPMC is one of the key supporters of
CENTEX’s various programs. It made a
donation of P2.6 million, which was used
to fund the following projects: A Class
of Your Own, a sponsorship program for
Grade 6 classes in CENTEX Manila; the
sports and music enhancement program
for CENTEX students; and teacher
training for CENTEX and other public
school teachers.
The JP Morgan Chase & Co. partners with AFI for the CENTEX Teacher Training Institute
Among those who helped make the
JPMC and CENTEX partnership a success
were Roberto Panlilio, JPMC senior
country officer, and Patricia Anne JavierGutierrez, head for JPMC corporate
social responsibility and employee
engagement.
Teachers apply what they’ve learned in their classes
The teacher-training program aims to help
teachers improve skills and revive their passion
for teaching
Filipinos celebrate Independence Day in Hong Kong
To commemorate the country’s 113th Independence Day, the Philippine
Independence Day Organizing Committee (PIDOC) of Hong Kong invited Ayala
Corporation and its subsidiaries, Bank of the Philippine Islands, Globe, and Ayala
Land to become co-presenters for the celebration.
Entitled, Lakbay ng Kalayaan, PIDOC wanted a less commercial yet engaging celebration
for the Filipinos and the Hong Kong community.
Filipinos in Hong Kong pose in
front of murals curated by Ayala
Museum
The Karosa ng Kagitingan
depicts many pivotal events
in Philippine history
Consul General Claro
Cristobal speaks about
the Filipino’s honorable
ways
Ayala introduced a Karosa ng Kagitingan at Kalayaan, or procession of floats, that highlighted key
historical events which ultimately led to the country’s freedom from foreign oppressors.
As co-presenter, the Ayala group with the help of Ayala Museum developed 20 murals
that showcased the nation’s journey toward independence. The murals included
milestones from Ayala’s history, from the introduction of the Tranvia—passenger cars that
plied Manila streets during theearly American period —to the establishment of BanKO,
a mobile savings bank developed by Globe and BPI.
The event also gave the Ayala group the opportunity to relaunch and offer
the group’s products and services to the overseas Filipino workers residing in Hong Kong.
JP Orbeta heads the Ayala
team in Hong Kong
(From left, back row) Globe representatives Ferdie Gilles,
Lizette Sabalvaro Dennis Dumdumaya, SingTel Rep
Heidi Dyangko, JP Orbeta, Amaia Representatives Aileen
Pacascas, Colen Khon, Carmi Pascua, Carlo Chan and
Cathy de Leon. Ayala representatives Maureen Barreiro
and Emi de Lara.(From left, front row) BPI representatives led
by Joel Alemda, and Rudolph Garibo
Text2Teach: Bringing Life to Learning
Text2Teach formally launched the fourth phase of its program last June
28 at the lobby of Ayala Museum.
The event was attended by the Text2Teach Steering Committee composed
of Department of Education Undersecretary Yolanda Quijano; Nokia Director
Gregory Elphinston; Nokia Head of Corporate Social Investments Jenny Lim;
Ayala Chairman and CEO Jaime Augusto Zobel de Ayala; Globe Telecom
President and CEO Ernest Cu; President of Ayala Foundation Victoria
Garchitorena; Senior Director of Ayala Foundation Mario Derequito; SEAMEO
INNOTECH Executive Director Dr. Ramon Bacani; and General Manager of
Pearson Philippines Dennis Lazo.
The fourth phase, which starts immediately after the end of the third phase in August
this year, is targeting at least 1,000 more public schools. This phase will last until 2014,
which would be the 11th year of the project.
Text2Teach is a program that makes use of mobile technology so that schools can
have access to educational media videos. The program seeks to improve the quality of
teaching in grades 5 and 6 in public elementary schools by providing highly interactive,
easy to use multi media packages designed to help make learning more exciting and
meaningful among students
The official launch of Text2Teach Phase 4 was
symbolized by the signing of a memorandum
of agreement. Among those present during
the signing were: (from left, front row)
Nokia Director Gergory Elphinston, JAZA,
Undersecretary Yolanda Quijano, Globe
President and CEO Ernest Cu (from left, back
row) Head of Corporate Social Investment of
Nokia Asia Pacific Jenny Lim, SEAMEO Innotech
Director Ramon Bacani, AFI President Victoria
Garchitorena, AFI Senior Director Mario
Derequito
Members of the Ayala team also paid the Philippine consul general a courtesy call, to reiterate the
company’s commitment and efforts to help meet the needs of their fellow Filipinos through various
programs, such as the affordable housing project of Amaia, the financing program of BPI, and the
new mobile offers and promos from Globe.
An audience of about 12,000 was welcomed by Ayala Managing Director John Philip Orbeta, who
also presented the two videos that speak of Ayala’s commitment to Filipinos.
CHED’s Licuanan keynotes AYLC
2012 launch and forum
Commission on Higher Education chairperson Patricia Licuanan was the keynote speaker
for the Ayala Young Leaders Congress (AYLC) 2012 academe launch and Student Leadership
Development Forum held last July 11 at the Ayala Museum in Makati City.
AYLC is the flagship program for youth development, conceptualized and staged by the Ayala
group of companies to further its commitment to national development. The end result of the
annual AYLC is to produce a committed corps of servant leaders able and willing to help uplift
the lives of fellow Filipinos. “For a country perennially underachieving, the need for true and
committed leadership is paramount. The 14th AYLC is another exciting opportunity to find
and further hone young people willing to invest their talent and efforts into seeing a better
Philippines,” said John Philip Orbeta, AYLC program director.
Meanwhile, the Student Leadership Development Forum focused on the growing importance of
educators and their role in nurturing young student leaders in their respective universities and
colleges.
“We have great hope that many young Filipinos today will commit wholeheartedly to the
challenging task of sustaining the changes initiated by our nation’s leaders and build on these
gains to benefit even more people,” said Ayala Corporation Chairman and CEO Jaime Augusto
Zobel de Ayala of the AYLC. “We believe that effective leadership does not only bring about
change, but, more importantly, inspires change in others so that more people work together for
the greater good.”
From left: AYLC Program
Director JP Orbeta, AFI President
Victoria Garchitorena, CHED
Chair Patricia Licuanan, and FZA
Nokia Director
Gregory
Elphinston
talks about
the journey of
Text2Teach so far
DepEd Undersecretary Yolanda
Quijano closes the event and
expresses her gratitude to all those
involved in the Text2Teach project
Licuanan talked about the essential qualities of
leaders
The AYLC launch was attended by numerous
professors from all over the country
20
The official publication of the Ayala group of companies Volume 15, Number 3, May-June 2011
Ayala Museum
presents Guernica
Ma. Victoria Zóbel de Vallejo-Nágera
29 January 1931, Manila; 16 June 2011, Madrid
Maria Victoria Zóbel de Vallejo-Nágera, the only sister
of Ayala Corporation Chairman Emeritus Jaime Zobel
de Ayala, recently passed on in Madrid, Spain. She
was 80.
Guernica by
Jaime Zobel de
Ayala
Doña Victoria was the eldest of Don Alfonso Zóbel de Ayala and
Doña Carmen Pfitz de Zóbel’s three children. Born in Manila in
1931, Doña Victoria was educated at the Assumption Convent
in Manila and the Dominican Convent in San Rafael, California.
Aside from Spanish, she spoke English, French, and German
fluently.
JZA fondly remembers growing up with his sister and his
youngest brother, Don Alfonso Zóbel, in their old house at the
corner of Roxas Boulevard and Padre Faura. As a young girl, Doña
Victoria (affectionately called Vicky by her family and closest
friends) loved playing pranks on JZA, who was four years her
junior.
Ayala Museum and the Embassy of Spain in the Philippines
presented an exhibition entitled El
Guernica: Deconstrucción at the Ground Floor Gallery
of Ayala Museum. It is available for public viewing until
August 7.
El Guernica: Deconstrucción takes a different angle to that
relationship through new works of art by a pool of selected
Filipino and Spanish contemporary artists who held a “dialogue”
with Pablo Picasso’s painting, Guernica. Based on a grid image of
the Guernica from an edition of the Revista Poesía dedicated to
the said work, participating artists chose portions of the artwork
to interpret. All these works are assembled and installed together.
This exhibition also follows through last year’s highly
successful El Prado Project: Dialogue with the Masters, where
Filipino and Spanish artists also re-interpreted masterful
artworks housed at the Museo Nacional del Prado in Spain.
El Guernica: Deconstrucción is sponsored by Mapfre Insular
Insurance Corporation, Indra Sistemas, and Instituto de
Turismo de España (TURESPAÑA). Additional support was
provided by Museo Reina Sofía, Narciso Abril, Carlos Alberdi,
Manuel Borja-Villel, Andres Soria, Fernando Muñoz and Javier
Menéndez.
For more information, call 757 7117 to 21
or email museum_inquiry@ayalamuseum.org.
Publisher Victoria Garchitorena
Editor-in-Chief Maritoni Ortigas
Editorial Consultant Emi de Lara
Managing Editor Paul de Guzman
Deputy Managing Editor Michelle Ancheta
Assistant Editor Janella Cacdac-Siena
Graphic Designer Izza Lambino
Advertising Manager Ciela Cayton
Photographer Jaime Martinez
Digital Imagist Jose Reginald Juanico
Correspondents
Ayala Corporation Janella Cacdac-Siena
Ayala Foundation, Inc. Michelle Ancheta
Ayala Land, Inc. Jorge Miguel T. Marco
Ayala Property Management Corp. Christine Lim-Siruelo
Ayala Systems Technology, Inc. Genesis Bautista
Bank of the Philippine Islands Reena Dungca
Globe Telecom EJ Francisco
Honda Cars Makati, Inc. Monina Macavinta
HRMall, Inc. Gabby Mejia
Integrated Microelectronics, Inc. Fred Blancas
Manila Water Company Alberto A. Ramirez
Timezone Nedz Manangan, Misty Garcia
Editorial Office
Filipinas Heritage Library
Makati Avenue, Ayala Triangle
Makati City 1224, Philippines
Telephone (632) 892-1801 local 14
Facsimile (632) 892-1810
Email AyalaNow@filipinaslibrary.org.ph
URL www.ayala.com.ph/ayalanow
For this special issue of Ayala Now, we would like to thank:
Carole Guamen of Ayala Corporation; Rita Canchela, Reena
Dungca and Venie B. Rañosa
of BPI, and Jhoanne Abubakar of FHL.
Doña Victoria lived most of her adult life in Spain. In 1957 she married the preeminent Spanish psychiatrist, Juan Antonio
Vallejo-Nágera. The couple settled in Madrid, where they raised a brood of three children, all of whom have now made
names for themselves—Alejandra, a writer, psychologist, and professor; Íñigo, a filmmaker and author; and María, a novelist
whose work has gained acclaim and popularity across the Spanish-speaking world. Dr. Vallejo-Nágera passed away in 1990.
During her prime, Doña Victoria was admired for her striking beauty, the result of her Spanish and Filipino heritage. A
book, lovingly produced by her youngest brother Don Alfonso, honored various facets of Doña Victoria’s life through a
series of heartfelt reminiscences and photographs. Some of the photos from the book appear in Ayala Now for the first
time.
Doña Victoria is survived by her brothers, her three children, and seven grandchildren.
(From left) Jaime
Zobel de Ayala with
younger brother
Alfonso and sister
Victoria, along
with parents, Doña
Carmen and Don
Alfonso
Doña Carmen Zobel with Doña Victoria
in one of their travels
FHL and Museum Events
MUSEUM
El Guernica: Deconstrucción
A collective re-interpretation of the haunting Picasso
painting
Until August 7
FHL
Feature Writing Workshop
Lecture : August 1
Workshop : August 10
(6 p.m.–9 p.m.)
Online classes: between August 2 to 9
Digital Darkroom for Photographers
August 15, 17, and 19
(6 p.m.–9 p.m.)
For more details, please call 892-1801,
send an SMS to 0917-559-4417,
e-mail cruz.ct@ayalafoundation.org, or
visit www.filipinaslibrary.org.ph.