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

- 129 -2011 2010 2009Parent BankReturn on common equity:Net profit 10.6% 12.0% 11.9%Average common equityCapital to risk assets ratio*:Combined credit, market andoperational risk 13.6% 12.1% 10.4%* Computed using balances prepared under FRSP for banks(b) Secured liabilities and resources pledged as security are shown below.BDO Unibank GroupParent Bank2011 2010 2011 2010Aggregate amountof secured liabilities P 14,939 P 23,997 P 14,939 P 23,997Aggregate amount of resourcespledged as security P 17,336 P 26,988 P 17,336 P 26,98830. EVENTS AFTER THE REPORTING PERIODOn February 16, 2012, BDO Unibank Group issued Senior Notes with a face value ofUS$300 million at a price of 99.448 or a total price of US$298 million. The SeniorNotes, which will mature in February 16, 2017, bear a coupon rate of 4.5% per annum,with effective yield of 4.625% per annum, and will be payable semi-annually everyFebruary 16 and August 16 starting on August 16, 2012. The net proceeds from theissuance of Senior Notes are intended for general funding and re-lending purposes.On January 28, 2012, the Parent Bank's BOD approved the declaration of annual cashdividends on peso denominated preferred shares at the rate of 6.5% per annum for atotal dividend of P330 which was approved by BSP on February 20, 2012.31. COMMITMENTS AND CONTINGENCIES31.01 LitigationsBDO Unibank Group has pending claims and/or is a defendant in various legal actionsarising from the ordinary course of business operations. As of December 31, 2011,management believes that no such legal proceedings are expected to have materialadverse effect on the BDO Unibank Group’s financial position. The Parent Bank is arespondent in two arbitration proceedings under the International Chamber ofCommerce (ICC) arising from isolated transactions, i.e., the sale of its equityinvestments.