Via ODiSy March 22, 2012 PHILIPPINE STOCK EXCHANGE ... - BDO

- 57 -Parent Bank2011Change in interest rates (in basis points)-100 +100 -50 +50Change on annualizednet interest income (P 1,633) P 1,633 (P 816) P 816As a percentage of ParentBank’s net interestincome for 2011 ( 5.1%) 5.1% ( 2.6%) 2.6%Earnings-at-risk P 1,9182010Change in interest rates (in basis points)-100 +100 -50 +50Change on annualizednet interest income (P 1,365) P 1,365 (P 683) P 683As a percentage of ParentBank’s net interestincome for 2010 ( 4.3%) 4.3% ( 2.2%) 2.2%Earnings-at-risk P 4194.02.03 Price RiskBDO Unibank Group is exposed to equity securities price risk because of investmentsheld by BDO Unibank Group and classified on the statement of financial positioneither as AFS or at FVTPL. BDO Unibank Group is not exposed to commodity pricerisk. To manage its price risk arising from investments in equity securities, BDOUnibank Group diversifies its portfolio. Diversification of the portfolio is done inaccordance with the limits set by BDO Unibank Group.The table below summarizes the impact of increases of the financial assets at FVTPLand AFS securities on BDO Unibank Group’s net profit after tax and equity as ofDecember 31. The analysis is based on the assumption that the correlated equityindices have increased by 3.04% in 2011 and increased by 17.2% in 2010 for securitiesclassified as FVTPL and AFS securities with all other variables held constant and allBDO Unibank Group’s equity instruments moved according to the historicalcorrelation with the index.BDO Unibank GroupImpact onImpact on othernet profit after tax comprehensive incomeincrease (decrease) increase (decrease)2011 2010 2011 2010Financial assets at FVTPL P 2 P 1 P - P -AFS securities - - 115 540P 2 P 1 P 115 P 540