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

- 103 -(d) Reciprocal investments in equity of other banks/enterprises; and,(e) Reciprocal investments in unsecured subordinated term debt instruments of otherbanks/quasi-banks qualifying as Hybrid Tier 1, Upper Tier 2 and Lower Tier 2, inexcess of the lower of: (i) an aggregate ceiling of 5% of total Tier 1 capital of thebank excluding Hybrid Tier 1; or, (ii) 10% of the total outstanding unsecuredsubordinated term debt issuance of the other bank/quasi-banks.Provided that any asset deducted from the qualifying capital in computing thenumerator of the risk-based capital ratio shall not be included in the risk-weightedassets in computing the denominator of the ratio.At the end of each reporting period, BDO Unibank Group has complied with theprescribed ratio of qualifying capital to risk-weighted assets.Under an existing BSP circular, expanded commercial banks are required to complywith the minimum capital requirement of P4,950. At the end of each reporting period,the Parent Bank has complied with the above capitalization requirement.There have been no material changes in BDO Unibank Group’s management of capitalduring the period.The Bank’s regulatory capital position (computed using balances prepared under FRSPfor banks) as of December 31, 2011 and 2010 follows:BDO Unibank Group Parent Bank2011 2010 2011 2010Tier 1 Capital P 90,978 P 83,474 P 84,619 P 78,201Tier 2 Capital 46,004 28,967 43,929 28,823Total Regulatory Capital 136,982 112,441 128,548 107,024Deductions ( 10,771) ( 10,229) ( 25,554) ( 21,957 )Total Qualifying Capital P 126,211 P 102,212 P 102,994 P 85,067Total Risk Weighted Assets P 798,867 P 738,416 P 756,567 P 700,510Capital ratiosTotal regulatory capital expressedas percentage of total riskweighted assets 15.8% 13.8% 13.6% 12.1%Total Tier 1 expressedas percentage of total riskweighted assets 10.2% 10.0% 8.7% 8.6%Tier 1 Capital P 9,777 P 83,474 P 84,619 P 78,201Tier 1 Capital Deductions ( 9,827) ( 9,394) ( 18,931) ( 17,698 )Net Tier 1 Capital P 81,201 P 74,080 P 65,688 P 60,503