Notes to Financial Statements - BDO

Report of Independent AuditorsTo the Board of Directors and the StockholdersBanco De Oro Unibank, Inc.Benguet Center, 12 ADB AvenueOrtigas Center, Mandaluyong CityWe have audited the accompanying financial statements of Banco De Oro Unibank, Inc. and subsidiaries (together hereinafterreferred to as the Group) and Banco De Oro Unibank, Inc. (the Parent Bank), which comprise the statements of condition asat December 31, 2008 and 2007, and the income statements, statements of changes in equity and cash flow statements foreach of the three years in the period ended December 31, 2008, and notes to financial statements comprising of a summaryof significant accounting policies and other explanatory notes.Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with thefinancial reporting standards in the Philippines for banks as described in Note 2 to the financial statements. This responsibilityincludes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financialstatements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriateaccounting policies; and making accounting estimates that are reasonable in the circumstances.Auditors’ ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits inaccordance with Philippine Standards on Auditing. Those standards require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement ofthe financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controlrelevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’sinternal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness ofaccounting estimates made by management, as well as evaluating the overall presentation of the financial statements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.OpinionIn our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of theGroup and of the Parent Bank as of December 31, 2008 and 2007, and their financial performance and their cash flows foreach of the three years in the period ended December 31, 2008, in accordance with the financial reporting standards in thePhilippines for banks as described in Note 2 to the financial statements.PUNONGBAYAN & ARAULLOBy:Benjamin P. ValdezPartnerCPA Reg. No. 0028485TIN 136-619-880PTR No. 1566055, January 5, 2009, Makati CitySEC Accreditation No. 0009-AR-2BIR AN 08-002511-11-2008 (Nov. 25, 2008 to 2011)March 2, 2009Thinking Ahead To Get You Ahead • Annual Report 2008 3