2004 - Asianbanks.net

NOLCO2001 P=4,223,828 P=4,223,828 P=– 20042002 3,257,899 – 3,257,899 20052003 1,182,806 – 1,182,806 20062004 94,530 – 94,530 2007P=8,759,063 P=4,223,828 P=4,535,235MCIT2001 P=3,959 P=3,959 P=– 20042002 14,671 – 14,671 20052003 27,694 – 27,694 20062004 73,385 – 73,385 2007P=119,709 P=3,959 P=115,75022. Trust OperationsSecurities and other properties (other than deposits) held by the Parent Company in fiduciary or agency capacitiesfor clients (and beneficiaries) are not included in the accompanying statements of condition since these are notresources of the Parent Company (Note 24).Government securities with total face value of P=1,017.1 million and P=838.2 million as of December 31, 2004 and2003, respectively, are deposited with the BSP in compliance with existing banking regulations relative to the trustfunctions of the Parent Company. The carrying values of the government securities with the BSP amounted to P=1,026.8 million and P=839.7 million as of December 31, 2004 and 2003.Additionally, a certain percentage of the Parent Company’s trust income is transferred to surplus reserve until suchreserve for trust functions amounts to 20% of the Parent Company’s authorized capital stock. No part of such surplusreserve shall at any time be paid out as dividends.Also, in accordance with BSP regulations, the common trust funds managed by the Parent Company’s trustdepartment maintain reserve deposit account with the BSP and government securities to meet the reserverequirement on peso-denominated common trust funds and other similarly managed funds. As of December 31,2004 and 2003, the balance of the BSP reserve deposit account amounted to P=2.4 billion and P=2.1 billion,respectively, while government securities amounted to P=3.9 billion and P=2.7 billion, respectively.23. Segment InformationThe Group’s operating businesses are organized and managed separately according to the nature of servicesprovided and the different markets served with a segment representing a strategic business unit. The Group’sbusiness segments are as follows:Consumer and Retail Banking - principally handling individual customers’ deposits, and providing consumer typeloans, overdrafts, credit card facilities and fund transfer facilities;Commercial Banking - principally handling commercial customers’ deposits, and providing products and services toits commercial middle market customers, mainly small-medium-sized enterprises;Corporate Banking - principally handling loans and other credit facilities and deposit and current accounts forcorporate and institutional customers;Investment Banking - principally arranging structured financing, and providing services relating to privatizations, initialpublic offerings, mergers and acquisitions; andTreasury - principally providing money market, trading and treasury services, as well as the management of theParent Company’s funding operations by use of treasury bills, government securities and placements andacceptances with other banks, through treasury and wholesale banking.- 73-