2009 ANNUAL REPORT FINANCIAL SUPPLEMENTS - BDO

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NOTES TO FINANCIAL STATEMENTSDecember 31, 2009, 2008 and 2007(Amounts in Millions of Philippine Pesos, Except Per Share Data or as Indicated)iv.Generali has an existing Investment Management Agreement with the BDO Unibank Group.For services rendered, Generali shall pay BDO Unibank Group management fees equivalent to0.25% of managed funds and 0.10% of directed investments and custodianship which shall bebased on the average daily balance of the fund type and shall be deducted quarterly from thefund. In 2009 and 2008, total service fees amounted to P5 and P3, respectively.There are no outstanding balances arising from these transactions as of December 31, 2009 and 2008.(ii)Expenses of the Parent BankBDO ANNUAL REPORT 2009116i. On May 30, 2007, ECN entered into a service agreement with the Parent Bank. Under thisagreement, ECN agreed to provide marketing, central operations, systems credit and collectionsupport and finance services to Parent Bank in connection with the operations of the credit cardbusiness. This agreement is pursuant to the terms and conditions of the MOA where ECNagreed to sell its rights, interests and obligations on its receivables and liabilities to the ParentBank.ii.iii.BDO Technology renders technical services and/or management consultation to the Parent Bankand affiliates at substantially the same terms as transactions with third parties. In 2009 and 2008,total amount of transactions were P5 and P22, respectively.BDO Unibank Group leases space from related parties for its branch operations. For the yearsended December 31, 2009, 2008 and 2007, total rent expense paid to related parties amountedto P315, P259, and P298, respectively, and is included as part of Occupancy account in thestatements of income.(iii)OthersThe Parent Bank has cost sharing agreement with subsidiaries as follows:i. BDO Capital has a service agreement with the Parent Bank whereby the Parent Bank shallprovide BDO Capital with various support services consisting of the following:1. Traditional bank transaction processing functions;2. Preparation and maintenance of the BDO Capital’s books of accounts;3. Generation of required external regulatory reports and internal managementinformation;4. General and periodic examination of the books of the BDO Capital’s accounts;5. Advertising and marketing services;6. Information technology support services;7. Recruitment and selection of personnel;8. Preparation of payroll and benefit administration; and,9. Other administrative and general services.
NOTES TO FINANCIAL STATEMENTSDecember 31, 2009, 2008 and 2007(Amounts in Millions of Philippine Pesos, Except Per Share Data or as Indicated)ii.On January 31, 2008, BDO Securities entered into a service agreement with the Parent Bank.Under this agreement, the Parent Bank shall provide various support services such as generalaccounting, internal audit, human resources management, advertising and marketing services,information technology systems/processing, legal support and administrative and generalservices.Outstanding balances arising from these transactions as of December 31, 2009 and 2008 amounted toP5 and P41, respectively.(iv)The salaries and other compensation given to BDO Unibank Group’s key management follow:BDO Unibank Group2009 2008 2007Salaries and wages P 504 P 437 P 408Bonuses 239 208 167Social security costs and other benefits 34 33 17P 777 P 678 P 592Parent Bank2009 2008 2007Salaries and wages P 326 P 270 P 274Bonuses 165 135 117Social security costs and other benefits 19 21 14P 510 P 426 P 405BDO ANNUAL REPORT 200911725. TRUST OPERATIONSThe following securities and other properties held by BDO Unibank Group in fiduciary or agency capacity (for a fee)for its customers are not included in the accompanying BDO Unibank Group statements of financial position sincethese are not properties of BDO Unibank Group (see Note 31).BDO Unibank Group Parent Bank2009 2008 2009 2008Investments P 195,775 P 188,553 P 149,654 P 188,554Others 261,253 149,620 240,258 122,488P 457,028 P 338,173 P 389,912 P 311,042In compliance with the requirements of the General Banking Act relative to the Bank’s trust functions:(a)Investment in government securities (shown as part of Held-to-maturity Investments) with a total face value ofP8,007 and P3,057 as of December 31, 2009 and 2008, respectively, in BDO Unibank Group and P3,771 andP2,707 as of December 31, 2009 and 2008, respectively, in the Parent Bank are deposited with BSP as securityfor the Bank’s faithful compliance with its fiduciary obligations; and,
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STATEMENTS OF INCOMEFor the Years E
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2009 ANNUAL REPORT FINANCIAL SUPPLEMENTS - BDO

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