Philippine National Bank

Strengthening Corporate Governance Towards PNB's Sustainability

Project Commitment to Sustainable Development Goals (SDGs)

INTRODUCTION

PNB continuously subscribes to the highest standards of corporate governance, as the bank believes that good governance supports long-term value creation. The bank is guided by the Bangko Sentral ng Pilipinas’ (Central Bank of the Philippines) Manual of Regulations for Banks (MORB), the Securities and Exchange Commission’s (SEC) Code of Corporate Governance for Publicly Listed Companies, and the prevailing best practices as prescribed under the ASEAN Corporate Governance Scorecard (ACGS).

PNB is committed to building an open and inclusive culture, and the bank recognizes the benefits of having a Board of Directors whose members possess diverse backgrounds and experiences. The current make–up of the Board reflects diversity in gender, age, knowledge, and skills.

Consistent with the implementation of the ACGS, the bank continuously strives to meet the standards that reflect diversity, equity, and inclusion (DEI). These standards include that at least 50% of the members of the Board have educational background in banking and finance, accounting, economics, or law; that at least 50% of the members of the Board have relevant skills and experience in the areas of banking and finance, accounting, economics, or law; and that the Board has at least one female independent director.

FRAMEWORK AND STRATEGY

PNB believes that a sound and effective compliance system is the cornerstone of the bank’s strength and market presence, backed by over a century of stability and excellence. The bank adheres to the values of integrity, ethics, and good governance in the conduct of its business and affairs, exercising prudence in arriving at decisions, enforcing internal discipline, and a system of checks and balances in the bank’s operating processes. PNB also works to uphold its transparency and accountability to protect various stakeholders, including customers, investors, stockholders, and regulators.

ACHIEVEMENT AND IMPACT

The bank is deeply honored and humbled that its efforts are continuously being recognized by regulators, industry observers, and external organizations. These milestones are proof that PNB is on the right track in its corporate governance journey.

PNB has also garnered various awards from external bodies starting in 2022. Its corporate governance program has been recognized for its adherence to the ASEAN Corporate Governance Scorecard (ACGS), and has allowed PNB to reap its fourth (4th) Golden Arrow award from the Institute of Corporate Directors (ICD) in 2023.

Jointly developed by the Asian Development Bank and the ASEAN Capital Markets Forum, the ACGS is a set of questions developed in accordance with the corporate governance principles of the Organization for Economic Co-operation and Development (OECD) as well as the best corporate governance practices of major publicly listed companies in the ASEAN.

FUTURE DIRECTION

As part of its pursuit of sustainability and to meet the challenges of the “New Normal”, PNB revisited its Vision and Mission statements, and core values during a two-day workshop at the Century Park Hotel in Manila on April 14 and 15 of 2023.

Members of the PNB Board of Directors, Senior Management Team, and Board Advisors participated in the workshop facilitated by the ICD. The exercise on forward planning during the workshop had the Board and the Senior Management working together to define the bank’s strategic direction for the next five years. This yielded new Board-approved Vision and Mission statements, core values, and strategic objectives for 2023 to 2028, with a focus on the following priority areas: Digitalization, Synergy with LT Group of Companies, Focus on the Provinces, and Sustainability.

The Philippine National Bank (PNB) is the country’s first universal bank and is one of the largest privately-owned Philippine commercial banks. PNB was established by the Government of the Philippines in 1916 and became fully privatized in 2007. As an instrument of economic development, PNB led the industry through the years with its agricultural modernization program and trade finance support for the country’s agricultural exports. In addition, the bank pioneered efforts in the Overseas Filipino Worker (OFW) remittance business. It introduced many innovations such as Bank on Wheels, computerized banking, Automated Teller Machine (ATM) banking, mobile money changing, domestic traveler’s checks, electronic filing, payment systems for large taxpayers, and Unit Investment Trust Fund (UITF) ATMs. PNB has the largest number of overseas offices and one of the largest domestic branch networks among local banks.

www.pnb.com.ph