Banco de Oro Universal Bank provides a - Asianbanks.net

2005 ANNUAL REPORT73In 2005, the Group has a past due DOSRI loan amounting to P4,437 (P4,439 in 2004) which represents 0.06% of the total DOSRI loansas of December 31, 2005 both in the parent company and consolidated financial statements.b. As of December 31, 2005 and 2004, total deposit made by the related parties to the Group amounted to P137,696,576 andP14,852,118, respectively. The related interest expense from deposits amounted to P123,717 and P3,280 in 2005 and 2004,respectively.c. The Group leased from related parties space for its branch operations. For the years ended December 31, 2005 and 2004, total rentexpense paid to related parties amounted to P137,918 and P120,204, respectively, and is included as part of Occupancy in thestatements of income.d. The salaries and other compensation given to the Group’s key management personnel amounted to P109,092 and P79,623 in 2005and 2004, respectively, in the parent company financial statements and P164,863 and P132,936 in 2005 and 2004, respectively, in theconsolidated financial statements.25. EARNINGS PER SHAREBasic earnings per share were computed as follows:ConsolidatedParent2005 2004 2005 2004Net income attributable to equity holders of the parent P 2,586,191 P 2,021,038 P 2,470,362 P 1,514,661Divided by the weighted average number ofoutstanding common shares (in thousands) 935,808 908,189 935,808 908,189Basic earnings per share P 2.76 P 2.23 P 2.64 P 1.67Diluted earnings per share is computed as follows:Net income attributable to equity holders of the parent P 2,586,191 P 2,021,038 P 2,470,362 P 1,514,661Interest expense on convertible loan, net of tax 20,854 13,575 20,854 13,575Total diluted net income 2,607,045 2,034,613 2,491,216 1,528,236Divided by the weighted average numberof outstanding common shares (in thousands):Outstanding common shares 935,808 908,189 935,808 908,189Potential common shares from assumed conversionof convertible loans 31,407 34,010 31,407 34,010Total weighted average common shares after conversion 967,215 942,199 967,215 942,199Diluted earnings per share P 2.70 P 2.16 P 2.58 P 1.6226. SELECTED FINANCIAL PERFORMANCE INDICATORSa. The following are some measures of the Group and the Bank’s financial performance:Return on average equity:ConsolidatedParent2005 2004 2005 2004Net income 13.9% 12.9% 13.6% 12.9%Average total capital accountsReturn on average assets:Net income 1.2% 1.2% 1.3% 1.3%Average total assetsNet interest margin:Net interest income 3.8% 3.5% 3.6% 3.3%Average interest earning assetsCapital to risk assets ratio:Total capital 18.3% 24.5% 15.4% 20.8%Risk assets