2011 Annual Report - BDO

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15.05 Surplus ReserveIn compliance with the requirements of the General Banking Act relative to the Bank’s trustfunctions, certain percentage of the trust income is transferred to surplus reserve. This yearlytransfer is required until the surplus reserve for trust function is equivalent to 20% of theBank’s authorized capital stock. As of December 31, 2011 and 2010, appropriated surplusrelated to the Bank’s trust functions amounted to P52,284,018 and P13,509,022, respectively.16. SERVICE CHARGES, FEES AND COMMISSIONSThis account is composed of the following:2011 2010Trust fees P 238,141,529 P 200,319,082Upfront fees 52,215,504 ( 46,853,464 )Others – net 5,706,143 5,929,876P 296,063,176 P 159,395,494Upfront fees are earned (incurred) from sold credit default swap (net of bought) in 2011 andfrom bought credit default swap (net of sold) in 2010.17. THIRD PARTY INFORMATIONThird party information refers to service charges incurred by the Bank for market dataobtained from service providers such as: Reuters, Prebon and Bloomberg (used in the Bank’streasury operations).www.bdo.com.ph 97
NOTES TOFINANCIAL STATEMENTS18. OTHER EXPENSESThis account is composed of the following:2011 2010Advertising P 12,586,306 P 11,175,425Security, messengerial andjanitorial services 11,050,782 13,629,759Custodianship fees 10,082,382 8,436,643Repairs and maintenance 10,072,543 11,997,690Transfer fees and charges 7,327,342 7,544,576Stationery and supplies 5,703,100 5,513,555Communication 5,414,705 5,722,541Contractual services 3,882,494 1,355,011Courier services 1,666,175 1,826,347Fines, penalties and other charges 625,000 424,800Miscellaneous 2,979,762 2,379,310P 71,390,591 P 70,005,65719. EMPLOYEE BENEFITS19.01 Salaries and Employee BenefitsThe total expense recognized by the Bank for employee benefits is broken down below.2011 2010Salaries and wages 201,253,563 P 179,994,876Pension – defined benefit plans 24,532,042 22,269,297Social security and medical benefits 4,714,662 4,553,226Others 1,140,743 469,09819.02 Post-employment Defined BenefitP 231,641,010 P 207,286,497The Bank maintains a tax-qualified, non-contributory retirement plan covering all regular fulltimeemployees. The plan is being administered by a trustee.The Bank obtained an updated actuarial valuation as of December 31, 2011 and 2010 toascertain the amount of retirement benefit cost and the balance of the defined benefit asset(obligation) as of that date in accordance with PAS 19, Employee Benefits. Actuarial valuationsare obtained regularly to update the retirement benefit costs and the amount of contributions.
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TABLE OFCONTENTS246Corporate Missio
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OUR COMMITMENTOur commitment to pro
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We remain steadfast in our vision a
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The Storywww.bdo.com.ph 9
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• Execution. If you are more of a
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ELIZABETH T. SY,Director59 years ol
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ADVISERSHarley T. Sy Ian T. Fish Ra
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CORPORATEGOVERNANCEBDO Private Bank
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CORPORATEGOVERNANCEChairman: Nestor
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Awardswww.bdo.com.ph 23
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Best Private Bankin the Philippines
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REPORT OFINDEPENDENT AUDITORSTHE BO
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STATEMENTS OFINCOMEFOR THE YEARS EN
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STATEMENTS OFCHANGES IN EQUITYFOR T
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www.bdo.com.ph 33
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2.01 Basis of Preparation of Financ
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2010Notes FRSP Difference PFRSChang
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Bank is not subject to minimum fund
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losses on AFS, can be reclassified
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i. only in rare circumstances and i
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together with the host contract wit
Page 48 and 49: If there is objective evidence that
Page 50 and 51: Bills payable are recognized initia
Page 52 and 53: In considering each possible relate
Page 54 and 55: translated into the Bank’s presen
Page 56 and 57: Deferred tax is provided, using the
Page 58 and 59: • The Risk Management Unit is res
Page 60 and 61: 2.15.02.01 Foreign Exchange RiskThe
Page 62 and 63: The following table shows the amoun
Page 64 and 65: 2011More MoreOne to than three than
Page 66 and 67: 2010More MoreOne to than three than
Page 68 and 69: The following table sets out the cr
Page 70 and 71: December 31, 2010Loans - Trading an
Page 72 and 73: The Bank’s lead regulator, the BS
Page 74 and 75: 3. CRITICAL ACCOUNTING ESTIMATES AN
Page 76 and 77: Details of impairment losses (recov
Page 78 and 79: payable) with repricing frequencies
Page 80 and 81: and any resulting impairment loss c
Page 82 and 83: from 0.0% to 9.13% per annum in 201
Page 84 and 85: 6.01 Collateralized Debt Obligation
Page 86 and 87: P9,483,508 in 2011 and 2010, respec
Page 88 and 89: this transaction amounted to P84,58
Page 90 and 91: In 2010, the Bank has assessed two
Page 92 and 93: A reconciliation of the carrying am
Page 94 and 95: Interest rates on deposit liabiliti
Page 96 and 97: 14. ACCRUED TAXES AND OTHER LIABILI
Page 100 and 101: Changes in the present value of the
Page 102 and 103: Assumptions rgarding future mortali
Page 104 and 105: 21. TAXES21.01 Current and Deferred
Page 106 and 107: The Bank is subject to MCIT which i
Page 108 and 109: The composition of the Bank’s AUM
Page 110 and 111: www.bdo.com.ph 109
Page 112: PRODUCTSAND SERVICESWEALTH ADVISORY
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2011 Annual Report - BDO

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