- 49 -4.02.01 Foreign Exchange Risk<strong>BDO</strong> Unibank Group manages its exposure to effects of fluctuations in the foreigncurrency exchange rates by maintaining foreign currency exposure within the existingregulatory guidelines and at a level that it believes to be relatively conservative for afinancial institution engaged in that type of business.<strong>BDO</strong> Unibank Group’s net foreign exchange exposure is computed as its foreigncurrency assets less foreign currency liabilities. BSP regulations impose a cap of 20% ofunimpaired capital or US$50 million, whichever is lower, on the group excess foreignexchange holding of banks in the Philippines. <strong>BDO</strong> Unibank Group’s foreign exchangeexposure is primarily limited to the day-to-day, over-the-counter buying and selling offoreign exchange in <strong>BDO</strong> Unibank Group’s branches as well as foreign exchangetrading with corporate accounts and other financial institutions. <strong>BDO</strong> Unibank Group,being a major market participant in the Philippine Dealing System, may engage inproprietary trading to take advantage of foreign exchange fluctuations.<strong>BDO</strong> Unibank Group’s foreign exchange exposure during the day is guided by thelimits set forth in <strong>BDO</strong> Unibank Group’s Risk Management Manual. These limits arewithin the prescribed ceilings mandated by the BSP. At the end of each day, <strong>BDO</strong>Unibank Group reports to the BSP on its compliance with the mandated foreigncurrency exposure limits. In addition, it also reports to the BSP on the respectiveforeign currency positions of its subsidiaries.The breakdown of the financial assets and liabilities as to foreign and peso-denominatedbalances as of December 31, 2011 and 2010 follows:<strong>BDO</strong> Unibank Group2011 2010ForeignForeignCurrency Peso Total Currency Peso TotalResources:Cash and other cash itemsand due from BSP P 24 P 157,999 P 158,023 P 12 P 165,143 P 165,155Due from other banks 24,137 582 24,719 21,738 39 21,777Trading and investmentsecurities:At FVTPL 2,071 2,752 4,823 3,743 3,629 7,372AFS securities 66,152 23,773 89,925 48,040 37,634 85,674HTM 77,940 15,730 93,670 84,361 19,880 104,241Loans and other receivables 124,178 549,749 673,927 133,032 432,989 566,021Other resources 2,002 425 2,427 2,194 358 2,552P 296,504 P 751,010 P 1,047,514 P 293,120 P 659,672 P 952,792Liabilities:Deposit liabilities P 206,618 P 651,951 P 858,569 P 217,049 P 565,586 P 782,635Bills payable 44,565 14,909 59,474 39,825 26,036 65,861Subordinated notes payable - 38,255 38,255 - 23,152 23,152Other liabilities 2,455 39,039 41,494 5,080 32,818 37,898P 253,638 P 744,154 P 997,792 P 261,954 P 647,592 P 909,546
- 50 -Parent Bank2011 2010ForeignForeignCurrency Peso Total Currency Peso TotalResources:Cash and other cash itemsand due from BSP P - P 149,094 P 149,094 P - P 156,378 P 156,378Due from other banks <strong>22</strong>,741 36 <strong>22</strong>,777 20,396 37 20,433Trading and investmentsecurities:At FVTPL 1,864 544 2,408 3,203 1,144 4,347AFS securities 63,023 19,908 82,931 44,791 32,934 77,725HTM 73,092 12,650 85,742 79,168 16,401 95,569Loans and other receivables 123,685 530,172 653,857 131,914 416,704 548,618Other resources 2,002 316 2,318 2,194 692 2,886P 286,407 P 712,720 P 999,127 P 281,666 P 624,290 P 905,956Liabilities:Deposit liabilities P 200,000 P 638,748 P 838,748 P 209,524 P 553,110 P 762,634Bills payable 44,565 6,813 51,378 39,605 16,476 56,081Subordinated notes payable - 38,255 38,255 - 23,152 23,152Other liabilities 2,017 32,913 34,930 4,842 27,561 32,4034.02.02 Interest Rate RiskP 246,582 P 716,729 P 963,311 P 253,971 P 620,299 P 874,270<strong>BDO</strong> Unibank Group prepares gap analysis to measure the sensitivity of its resources,liabilities and off-book items to interest rate fluctuations. The focus of analysis is theimpact of changes in interest rates on accrual or reported earnings. This analysis wouldgive management a glimpse of maturity and re-pricing profile of its interest sensitiveresources and liabilities. An interest rate gap report is prepared by classifying all assetsand liabilities into various time buckets according to contracted maturities or anticipatedrepricing dates, and other applicable behavioral assumptions. The difference in theamount of resources and liabilities maturing or being repriced in any time periodcategory would then give <strong>BDO</strong> Unibank Group an indication of the extent to which itis exposed to the risk of potential changes in net interest income.
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Via ODiSyMarch 22, 2012PHILIPPINE S
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SEC FORM 17-A
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TABLE OF CONTENTSPage No.PART I- BU
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Philippine Subsidiaries% Interest H
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sophisticated investors. The Bank
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(v)Transactions with and/or Depende
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BDO BANK-OWNED PROPERTIES UTILIZED
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BDO BANK-OWNED PROPERTIES UTILIZED
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2) Leased PropertiesThe Group lease
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Branch Address Lease Lease ExpiryEf
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Branch Address Lease Lease ExpiryEf
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Branch Address Lease Lease ExpiryEf
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Branch Address Lease Lease ExpiryEf
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Branch Address Lease Lease ExpiryEf
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Branch Address Lease Lease ExpiryEf
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Branch Address Lease Lease ExpiryEf
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Branch Address Lease Lease ExpiryEf
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Branch Address Lease Lease ExpiryEf
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Branch Address Lease Lease ExpiryEf
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Item 4. Submission of Matters to a
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On 29 January 2011, the Board of th
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Total Equity grew by 9% to P97.0 bi
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Balance Sheet - 2010 vs. 2009Total
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Comprehensive Income - For the year
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Item 7. Financial StatementsThe con
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UOB Singapore. He was formerly the
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Director of the Philippine Global C
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Name Age PositionInvestments GroupG
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Antonio N. Cotoco, 63, is Senior Ex
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Bienvenido M. Juat, Jr., 58, is Exe
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Ma. Ophelia Ll. Camiña, 58, is Sen
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Corporation; a Trustee of PCI Bank
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Dalmacio D. Martin, 50, is Senior V
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Luis S. Reyes, Jr., 54, is Senior V
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Equitable Banking Corporation in Ju
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The above compensation includes the
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Title ofClassName of BeneficialOwne
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esponsible for the setting up of th
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2 May 2011 Retirement of Ms. Nenita
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Setting the annual shareholders’
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AUDITED FINANCIAL STATEMENTSDECEMBE
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BDO UNIBANK, INC. AND SUBSIDIARIES(
- Page 95 and 96: - 2 -Net UnrealizedFair ValueGains
- Page 97 and 98: - 2 -BDO Unibank GroupParent BankNo
- Page 99 and 100: 1.02 Approval of Financial Statemen
- Page 101 and 102: - 4 -Parent BankFRSP Difference PFR
- Page 103 and 104: - 6 -(ii) Philippine Interpretation
- Page 105 and 106: - 8 -• PFRS 7 (Amendment), Financ
- Page 107 and 108: - 10 -(v) PFRS 9, Financial Instrum
- Page 109 and 110: - 12 -The financial statements of s
- Page 111 and 112: - 14 -2.06 Financial AssetsFinancia
- Page 113 and 114: - 16 -HTM investments consist of go
- Page 115 and 116: - 18 -The value produced by a model
- Page 117 and 118: - 20 -2.12 Premises, Furniture, Fix
- Page 119 and 120: - 22 -Deposit liabilities and other
- Page 121 and 122: - 24 -2.20 Revenue and Expense Reco
- Page 123 and 124: - 26 -Provisions are measured at th
- Page 125 and 126: - 28 -Future cash flows in a group
- Page 127 and 128: - 30 -Foreign exchange gains and lo
- Page 129 and 130: - 32 -(e)Executive Stock Option Pla
- Page 131 and 132: - 34 -3.01 Critical Management Judg
- Page 133 and 134: - 36 -3.02 Key Sources of Estimatio
- Page 135 and 136: - 38 -(iv) Loans and Other Receivab
- Page 137 and 138: - 40 -Parent BankNotes Level 1 Leve
- Page 139 and 140: - 42 -The retirement benefit asset
- Page 141 and 142: - 44 -• It then disseminates the
- Page 143 and 144: - 46 -2010MoreOne to than three Mor
- Page 145: - 48 -2010MoreOne to than three Mor
- Page 149 and 150: - 52 -BDO Unibank Group2010More Mor
- Page 151 and 152: - 54 -Parent Bank2010More MoreOne t
- Page 153 and 154: - 56 -A summary of the VaR position
- Page 155 and 156: - 58 -Parent BankImpact onImpact on
- Page 157 and 158: - 60 -b. SubstandardAccounts classi
- Page 159 and 160: - 62 -BDO Unibank Group2010Loans an
- Page 161 and 162: - 64 -Parent Bank2010Loans andTradi
- Page 163 and 164: - 66 -4.02.04.03 Concentrations of
- Page 165 and 166: - 68 -5. SEGMENT REPORTINGThe BDO U
- Page 167 and 168: - 70 -Commercial Investment Private
- Page 169 and 170: - 72 -At Amortized Carrying FairCos
- Page 171 and 172: - 74 -8. DUE FROM OTHER BANKSThe ba
- Page 173 and 174: - 76 -The aggregate contractual or
- Page 175 and 176: - 78 -The fair values of government
- Page 177 and 178: - 80 -The fair values are determine
- Page 179 and 180: - 82 -Reclassification of CLNs from
- Page 181 and 182: - 84 -Per MORB, non-performing loan
- Page 183 and 184: - 86 -Leasehold Furniture,Rights an
- Page 185 and 186: - 88 -Land Buildings TotalJanuary 1
- Page 187 and 188: - 90 -Real and other properties acq
- Page 189 and 190: - 92 -The BDO Unibank Group’s sub
- Page 191 and 192: - 94 -Full allowance for impairment
- Page 193 and 194: - 96 -This account is composed of t
- Page 195 and 196: - 98 -The breakdown of this account
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- 100 -On October 19, 2009, the pre
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- 102 -On December 29, 2009, BSP is
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- 104 -19.02 Capital AllocationThe
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- 106 -annum of the par value. Subs
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- 108 -20. INTEREST INCOMEInterest
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- 110 -Other operating expenses con
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- 112 -The movements in the present
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- 114 -Parent Bank2011 2010 2009 20
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- 116 -(c) Other Transactions with
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- 118 -ii. On January 31, 2008, BDO
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- 120 -27. TAXES27.01 Current and D
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- 122 -Movements in net deferred ta
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- 124 -27.04 Gross Receipts Tax (GR
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- 126 -28. EARNINGS PER SHAREBasic
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- 128 -29. SELECTED FINANCIAL PERFO
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- 130 -Sale of BankardBDO (as succe
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- 132 -PEACe bondsOn October 18, 20
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- 134 -Following is a summary of BD