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)BDO Unibank Group’s net foreign exchange exposure is computed as its foreign currency assets lessforeign currency liabilities. BSP regulations impose a cap of 20% of unimpaired capital or US$50million, whichever is lower, on the group excess foreign exchange holding of banks in the Philippines.BDO Unibank Group’s foreign exchange exposure is primarily limited to the day-to-day, over-thecounterbuying and selling of foreign exchange in BDO Unibank Group’s branches as well as foreignexchange trading with corporate accounts and other financial institutions. BDO Unibank Group, beinga major market participant in the Philippine Dealing System, may engage in proprietary trading to takeadvantage of foreign exchange fluctuations.BDO Unibank Group’s foreign exchange exposure during the day is guided by the limits set forth in BDOUnibank Group’s Risk Management Manual. These limits are within the prescribed ceilings mandatedby the BSP. At the end of each day, BDO Unibank Group reports to the BSP on its compliance withthe mandated foreign currency exposure limits. In addition, it also reports to the BSP on the respectiveforeign currency positions of its subsidiaries.The breakdown of the financial assets and liabilities as to foreign and peso-denominated balances as ofDecember 31, 2009 and 2008 follows:BDO Unibank Group2009 2008ForeignForeignCurrency Peso Total Currency Peso TotalResources:Cash and other cashitems and due fromBSP P 19 P 95,358 P 95,377 P - P 84,439 P 84,439Due from other banks 16,707 25 16,732 16,974 128 17,102Trading and investmentsecurities:At FVTPL 5,535 2,967 8,502 3,562 3,288 6,850AFS securities 23,296 23,737 47,033 13,808 21,365 35,173HTM 93,891 22,286 116,177 84,268 29,860 114,128Loans and otherreceivables 75,717 449,184 524,901 68,815 423,171 491,986Other resources 2,071 821 2,892 1,138 13,829 14,967P 217,236 P 594,378 P 811,614 P 188,565 P 576,080 P 764,645BDO ANNUAL REPORT 200955Liabilities:Deposit liabilities P 188,988 P 505,690 P 694,678 P 172,667 P 464,087 P 636,754Bills payable 3,594 27,821 31,415 16,879 34,557 51,436Subordinated notes - 23,152 23,152 - 20,146 20,146Other liabilities 8,469 36,448 44,917 10,934 24,988 35,922P 201,051 P 593,111 P 794,162 P 200,480 P 543,778 P 744,258