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

- 84 -Per MORB, non-performing loans shall, as a general rule, refer to loan accounts whoseprincipal and/or interest is unpaid for 30 days or more after due date or after they havebecome past due in accordance with existing rules and regulations. This shall apply toloans payable in lump sum and loans payable in quarterly, semi-annual or annualinstallments, in which case, the total outstanding balance thereof shall be considerednon-performing. In the case of loans payable in monthly installments, the totaloutstanding balance thereof shall be considered nonperforming when three or moreinstallments are in arrears. In the case of loans payable in daily, weekly or semi-monthlyinstallments, the entire outstanding balance of the loan/receivable shall be considered aspast due when the total amount of arrearages reaches 10% of the total loan/receivablebalance. Restructured loans shall be considered non-performing except when as ofrestructuring date, it has an updated principal and interest payments and it is fullysecured by real estate with loan value of up to 60% of the appraised value of real estatesecurity and the insured improvements and such other first class collaterals.As of December 31, 2010, interbank loans receivables include loans to a foreign financialinstitution under bankruptcy amounting to P19 with related allowance for impairment ofP19 (see Note 9.02 for the investment in other debt securities in that foreign financialinstitution). In 2011, the Parent Bank disposed the loan through a sale at a gain of P0.2and is presented as part of Trading gain – net in the statement of income.The concentration credit of the total loan portfolio as to industry follows:BDO Unibank Group Parent Bank2011 2010 2011 2010Wholesale and retail trade P 105,905 P 76,592 P 104,115 P 75,211Manufacturing (various industries) 101,468 90,555 97,730 86,861Financial intermediaries 84,668 79,058 86,169 78,142Real estate, renting and otherrelated activities 77,624 55,842 75,364 53,887Other community, social andpersonal activities 58,315 39,474 55,560 39,291Transportation and communication 51,378 36,295 48,203 33,845Agriculture, fishing and forestry 8,037 9,592 7,536 8,254Others 182,751 154,104 181,690 151,462P 670,146 P 541,512 P 656,367 P 526,953The breakdown of total loan portfolio as to secured and unsecured follows:BDO Unibank GroupParent Bank2011 2010 2011 2010Secured:Real estate mortgage P 115,833 P 93,722 P 115,296 P 93,309Chattel mortgage 61,452 42,566 53,100 34,738Other securities 137,259 104,142 131,166 103,961314,544 240,430 299,562 232,008Unsecured 355,602 301,082 356,805 294,945P 670,146 P 541,512 P 656,367 P 526,953