Banco de Oro Universal Bank provides a - Asianbanks.net

50 BANCO DE OROParent Company2004One to Three One to Morethree months to three than threemonths one year years years TotalResources:Cash P 1,299 P 5 P - P 4,323 P 5,627Loans 14,618 17,532 14,024 13,558 59,732Investments 24,383 1,970 12,423 31,738 70,514Placements 7,447 648 5,634 1,390 15,119Other resources 1,339 1,899 1,185 17,457 21,880Total Resources 49,086 22,054 33,266 68,466 172,872Liabilities and Capital FundsDeposit liabilities 35,404 1,313 16,892 72,271 125,880Bills payable 8,733 6,087 8,824 2,563 26,207Other liabilities 365 3,694 544 620 5,223Total liabilities 44,502 11,094 26,260 75,454 157,310Capital Funds - 1,369 - 14,193 15,562Total Liabilities andCapital Funds 44,502 12,463 26,260 89,647 172,872On-book gap 4,584 9,591 7,006 ( 21,181) -Cumulative on-book gap 4,584 14,175 21,181 - -Contingent asset 14,360 1,916 637 958 17,871Contingent liabilities 10,314 16,221 686 958 28,179Total gap P 8,630 (P 4,714) P 6,957 (P 21,181) (P 10,308)Cumulative total gap P 8,630 P 3,916 P 10,873 (P 10,308) (P 10,308)3.28.3 Foreign Exchange RiskThe Group manages its exposure to effects of fluctuations in the foreign currency exchange rates by maintaining foreign currency exposurewithin the existing regulatory guidelines and at a level that it believes to be relatively conservative for a financial institution engaged in thattype of business.The Group’s net foreign exchange exposure is computed as its foreign currency assets less foreign currency liabilities. BSP regulations imposea cap of 2.5% of net worth, or U.S.$5 million, whichever is lower, on the consolidated excess foreign exchange holding of banks in thePhilippines. In the case of the Group, its foreign exchange exposure is primarily limited to the day-to-day, over-the-counter buying and sellingof foreign exchange in the Group’s branches as well as foreign exchange trading with corporate accounts and other financial institutions. TheGroup, being a major market participant in the Philippine Dealing System (PDS), may engage in proprietary trading to take advantage offoreign exchange fluctuations.The Group’s foreign exchange exposure during the day is guided by the limits set forth in the Group’s Risk Management Manual. These limitsare within the prescribed ceilings mandated by the BSP. At the end of each day, the Group reports to the BSP on its compliance with themandated foreign currency exposure limits. In addition, it also reports to the BSP on the respective foreign currency positions of itssubsidiaries.The breakdown of the financial resources and liabilities as to foreign and peso- denominated balances as of December 31, 2005 and 2004 areas follows:Consolidated2005ForeignCurrency Peso TotalResources:Due from BSP P 1,031,177 P 3,240,329 P 4,271,506Due from other banks 4,615,496 518,843 5,134,339Financial assets at fair valuethrough profit or loss 599,937 6,902,618 7,502,555Available-for-sale financialAssets - net 39,624,443 9,895,694 49,520,137Held-to-maturity investments - net 10,625,352 20,416,290 31,041,642Loans and receivable - net 14,211,488 89,903,389 104,114,877Other resources - net 1,403,056 14,028,445 15,431,501Liabilities:Deposit liabilities 61,648,890 98,017,233 159,666,123Bills payable 27,265,482 18,579,869 45,845,351Other liabilities 1,492,891 5,367,799 6,860,690