2009 ANNUAL REPORT FINANCIAL SUPPLEMENTS - BDO

NOTES TO FINANCIAL STATEMENTSDecember 31, 2009, 2008 and 2007(Amounts in Millions of Philippine Pesos, Except Per Share Data or as Indicated)The following additional information relates to the DOSRI loans:BDO Unibank Group Parent Bank2009 2008 2009 2008Total DOSRI loans P 24,430 P 30,845 P 24,412 P 30,845Unsecured DOSRI loans 2,005 - 2,000 -Past due DOSRI loans - - - -% of DOSRI loans to total loan portfolio 5.0% 7.9% 5.0% 8.0%% of unsecured DOSRI loans to total DOSRI loans 8.0% 0.0% 8.0% 0.0%% of past due DOSRI loans to total DOSRI loans 0.0% 0.0% 0.0% 0.0%(b)(c)DOSRI loans bear interest rates of 0% to 11.0% per annum both in 2009 and 2008 and 4.5% to 9.8% perannum in 2007 both in BDO Unibank Group and Parent Bank financial statements.Deposits from Related PartiesAs of December 31, 2009 and 2008, total deposits made by the related parties to BDO Unibank Groupamounted to P94,796 and P230,931, respectively. The related interest expense from deposits amounted to P6,P6 and P2 in 2009, 2008 and 2007, respectively.Other Transactions with Related PartiesA summary of other transactions of the Parent Bank with subsidiaries and associates is shown below.BDO ANNUAL REPORT 2009115(i)Income to the Parent Banki. ESHC engaged the Parent Bank to provide support services, such as human resource, audit,comptrollership, central administration and legal services in connection with its general andadministrative operations. The Parent Bank charges ESHC P50 thousand per quarter orP200 thousand annually. The service fee shall continue to be in force unless terminated throughwritten notice by either party at least 60 days prior to intended date of termination.On January 1, 2006, ESHC engaged BDO Technology to provide such services as systemsdevelopment and maintenance, computer operations, technical support and network services.ESHC is charged P500 thousand annually for services rendered.ii.iii.BDO Strategic Holdings, Inc. (BDOSHI) engaged the Parent Bank to provide various supportsuch as human resources management, audit, preparation and issuance of checks for and inbehalf of BDOSHI, documentation and safekeeping/custodianship of securities and collateraldocuments, accounting functions and review of financial statements for BDOSHI. The agreementis renewable every year. In 2009 and 2008, total service fees amounted to P295 thousand andP1,760 thousand, respectively.Strategic Property Holdings, Inc. (SPHI) engaged the Parent Bank to provide support servicesin connection with its general and administrative operations. SPHI pays the Parent Bank anannual service fee equivalent to P360 thousand. The service agreement shall continue to be inforce unless terminated by either party through a written notice of either party at least 60 daysprior to date intended for termination. SPHI also leases its office space from the Parent Bank atP1.6 per year.