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)OthersThe BDO Unibank Group is also a defendant in various cases pending in courts for alleged claims against theBDO Unibank Group, the outcomes of which are not fully determinable at present. As of December 31, 2009,management believes that, liabilities or losses, if any, arising from these claims would not have a material effecton the financial position and results of operations of BDO Unibank Group and will be taken up if and when afinal resolution by the courts is made on each claim.31.2 LeasesBDO ANNUAL REPORT 2009130BDO Unibank Group leases the premises of its head office and most of its branch offices for periods rangingfrom 1 to 15 years from the date of the contracts; terms are renewable upon the mutual agreement of the parties.Rent expense, reported as part of Occupancy under Other Operating Expense account in the statements ofincome, amounted to P1,651 in 2009, P1,463 in 2008 and P1,391 in 2007 in the BDO Unibank Groupfinancial statements and P1,531 in 2009, P1,386 in 2008 and P1,253 in 2007 in the Parent Bank financialstatements.The estimated minimum future annual rentals for the next five years follow:Year BDO Unibank Group Parent Bank2010 P 1,114 P 1,1072011 1,268 1,2612012 1,418 1,4112013 1,585 1,5782014 1,831 1,76531.3 OthersIn the normal course of BDO Unibank Group’s operations, there are various outstanding commitments andcontingent liabilities such as guarantees, commitments to extend credit, etc., which are not reflected in theaccompanying BDO Unibank Group financial statements. BDO Unibank Group recognizes in its booksany losses and liabilities incurred in the course of its operations as soon as these become determinable andquantifiable. Management believes that, as of December 31, 2009, no additional material losses or liabilitiesare required to be recognized in the accompanying financial statements of BDO Unibank Group as a result ofthe above commitments and transactions.