2004 - Asianbanks.net

4. Receivables from CustomersThis account consists of:GroupParent Company2004 2003 2004 2003(In Thousands)Loans and lease receivables P=102,555,828 P=107,280,727 P=89,656,356 P=97,040,132Customers’ liabilities on acceptances,letters of credit and trust receipts 25,849,323 18,410,203 25,849,323 18,404,657Receivables from cardholders 7,509,421 5,809,307 – –Bills purchased 16,276,848 9,074,928 16,253,638 9,074,928152,191,420 140,575,165 131,759,317 124,519,717Receivable from SPV (Note 28) – – 2,424,742 –152,191,420 140,575,165 134,184,059 124,519,717Unearned discount and capitalized interest (2,869,023) (2,594,954) (1,698,607) (1,875,063)Allowance for probable losses (Note 10)(11,496,894)(17,006,027)(11,263,087)(15,794,741)P=137,825,503 P=120,974,184 P=121,222,365 P=106,849,913The Parent Company’s receivables from customers amounting to P=1.6 billion and P=1.0 billion as of December 31,2004 and 2003, respectively, were pledged as collaterals with the BSP to secure borrowings under rediscountingprivileges. In addition, receivables from customers amounting to P=5.0 billion and P=4.1 billion as of December 31,2004 and 2003, respectively, have been rediscounted under the Development Bank of the Philippines (DBP), LandBank of the Philippines (LBP) and Social Security System (SSS) rediscounting facilities (Note 12).Current bank regulations allow banks with no unbooked valuation reserves and capital adjustments required by theBSP to exclude from nonperforming classification those loans that are fully provided with allowance for probablelosses, provided that interest on said loans shall not be accrued. Accordingly, NPLs not fully covered by allowancefor probable losses as of December 31, 2004 and 2003 follow:GroupParent Company2004 2003 2004 2003(In Thousands)NPLs P=15,656,540 P=23,016,270 P=14,003,755 P=21,617,074Less NPLs fully provided with allowancefor probable losses 3,832,818 7,759,682 3,270,645 7,201,116P=11,823,722 P=15,256,588 P=10,733,110 P=14,415,958Restructured loans of the Parent Company as of December 31, 2004 and 2003 amounted toP=14.0 billion and P=16.1 billion, respectively.The Parent Company’s loan portfolio includes non-risk loans, as defined under BSP regulations, totaling P=14.7 billionand P=16.0 billion as of December 31, 2004 and 2003, respectively.As of December 31, 2004 and 2003, 64.5% and 77.0% of the total loans of the Group are subject to periodic interestrepricing, respectively. Remaining loans earn annual fixed interest rates ranging from 5.2% to 49.9% for peso loansand from 2.3% to 11.0% for foreign currency loans in 2004 and from 4.1% to 26.4% for peso loans and from 2.0% to10.6% for foreign currency loans in 2003.- 55-