Banco de Oro Universal Bank provides a - Asianbanks.net

58 BANCO DE OROIncluded in these accounts are nonaccruing loans amounting to P4,446,947 in 2005 and P4,339,819 in 2004 in the parent companyfinancial statements and P4,506,095 in 2005 and P4,350,336 in 2004 in the consolidated financial statements.The net carrying amount of these financial assets is a reasonable approximation of their fair value.The Bank’s loan concentration of credit as to industry follows:ConsolidatedParent2005 2004 2005 2004Manufacturing (various industries) P 21,212,792 P 16,980,833 P 20,727,072 P 16,576,884Wholesale and retail trade 17,118,245 9,882,035 17,118,245 9,882,035Financial intermediaries 11,862,097 11,018,011 16,732,476 11,468,974Real estate, renting and other related activities 8,871,594 8,660,962 8,863,572 8,660,962Other community, social and personal activities 7,551,740 5,510,556 7,551,740 5,510,556Transportation and communication 2,887,583 2,337,976 2,887,583 2,337,976Agriculture, fishing and forestry 1,033,923 1,303,534 1,033,923 1,303,534Others 12,286,571 8,191,593 10,700,274 7,581,777P 82,824,545 P 63,885,500 P 85,614,885 P 63,322,698The breakdown of total loans as to secured and unsecured follows:ConsolidatedParent2005 2004 2005 2004Secured:Real estate mortgage P 21,010,219 P 17,771,033 P 20,981,016 P 17,748,965Chattel mortgage 3,603,669 2,365,171 3,589,228 2,354,310Other securities 19,172,988 15,288,049 19,153,797 15,288,04943,786,876 35,424,253 43,724,041 35,391,324Unsecured 39,037,669 28,461,247 41,890,844 27,931,374P 82,824,545 P 63,885,500 P 85,614,885 P 63,322,698The breakdown of total loans as to type of interest rate is as follows:ConsolidatedParent2005 2004 2005 2004Variable interest rates P 62,349,694 P 53,661,951 P 67,172,293 P 53,661,951Fixed interest rates 20,474,851 10,223,549 18,442,592 9,660,747P 82,824,545 P 63,885,500 P 85,614,885 P 63,322,698The changes in the allowance for impairment losses of loans are summarized below:ConsolidatedParent2005 2004 2005 2004Balance at beginning of year P 3,605,076 P 2,925,794 P 3,590,435 P 2,925,794Provisions during the year 1,035,576 948,411 991,522 395,670Reversal/reclassification ( 298,084) ( 269,050 ) ( 298,084) 269,050Accounts written off ( 4,651) ( 79) ( 4,651) ( 79)Balance at end of year P 4,337,917 P 3,605,076 P 4,279,222 P 3,590,435