COVER SHEET

SEC Registration Number

3 4 0 0 1

Company Name
B D O U N I B A N K , I N C .

Principal Office (No./Street/Barangay/City/Town/Province)

B D O C O R P O R A T E C E N T E R , 7 8 9 9

M A K A T I A V E N U E , M A K A T I C I T Y

Form Type Department requiring the Secondary License Type, If

report Applicable
1 7 - A

COMPANY INFORMATION
Company’s Email Address Company’s Telephone Mobile Number
Number/s
(632) 8840-7000

Annual Meeting Fiscal Year

No. of Stockholders Month/Day Month/Day
December 31

CONTACT PERSON INFORMATION

The designated contact person MUST be an Officer of the Corporation
Name of Contact Person Email Address Telephone Mobile Number
Number/s
Edmundo L. Tan tan.edmundo@bdo.com.ph +63 (2) 8878-4210

Contact Person’s Address

BDO Towers Valero, 8741 Paseo de Roxas, Makati City

Note: In case of death, resignation or cessation of office of the officer designated as contact person, such incident shall be reported to the
Commission within thirty (30) calendar days from the occurrence thereof with information and complete contact details of the new contact
person designated.
 SECURITIES AND EXCHANGE COMMISSION

SEC FORM 17-A

ANNUAL REPORT PURSUANT TO SECTION 17

OF THE SECURITIES REGULATION CODE AND SECTION 141
OF THE CORPORATION CODE OF THE PHILIPPINES

1. For the fiscal year ended: 31 December 2021

2. SEC Identification Number: 34001 3. BIR Tax Identification No. 000-708-174-000

4. Exact name of registrant as specified in its charter: BDO UNIBANK, INC.

5. Metro Manila, Philippines 6. (SEC Use Only)

Province, Country or other jurisdiction of Industry Classification Code:
incorporation or organization

7. BDO Corporate Center, 7899 Makati Avenue, Makati City 0726

Address of principal office Postal Code

8. (632) 8840-7000
Issuer's telephone number, including area code

9. N.A
Former name, former address, and former fiscal year, if changed since last report.

10. Securities registered pursuant to Sections 8 and 12 of the SRC, or Sec. 4 and 8 of the RSA

Title of Each Class Number of Shares

Common Stock, P10.00 par value 4,385,908,115 (as of April 5, 2022)

Preferred Stock, P10.00 par value 515,000,000

11. Are any or all of these securities listed on a Stock Exchange.

Yes [ X ] No [ ]

If yes, state the name of such stock exchange and the classes of securities listed therein:

Philippine Stock Exchange 4,385,908,115 Common Shares (as of April 5, 2022)

12. Check whether the issuer:

(a) has filed all reports required to be filed by Section 17 of the SRC and SRC Rule 17.1
thereunder or Section 11 of the RSA and RSA Rule 11(a)-1 thereunder, and Sections 26
and 141 of The Corporation Code of the Philippines during the preceding twelve (12) months
(or for such shorter period that the registrant was required to file such reports);

Yes [ X ] No [ ]

(b) has been subject to such filing requirements for the past ninety (90) days.

Yes [ X ] No [ ]

13. Aggregate market value of the voting stock held by non-affiliates: P233,654,121,072.70
(P120.70 BDO share price as of December 31, 2021)
 TABLE OF CONTENTS

Page No.

PART I - BUSINESS AND GENERAL INFORMATION

Item 1 Business 4

Item 2 Properties 23
Item 3 Legal Proceedings 77
Item 4 Submission of Matters to a Vote of Security Holders 77

PART II - OPERATIONAL AND FINANCIAL INFORMATION

Item 5 Market for Issuers Common Equity and Related Stockholders 79

Matters
Item 6 Management’s Discussion and Analysis or Plan of Operations 84
Item 7 Financial Statements 93
Item 8 Changes in and Disagreements with Accountants on Accounting 93
and Financial Disclosures

PART III - CONTROL AND COMPENSATION INFORMATION

Item 9 Directors and Executive Officers of the Issuer 95

Item 10 Executive Compensation 111
Item 11 Security Ownership of Certain Beneficial Owners and 113
Management
Item 12 Certain Relationships and Related Transactions 120

PART IV - CORPORATE GOVERNANCE

Item 13 Corporate Governance 122

PART V - EXHIBITS AND SCHEDULES

Item 14 List of Branches, Reports on SEC Form 17-C 141

SIGNATURES 149

EXHIBITS & ANNEXES

Audited Financial Statements and Independent Auditors’ Report (December 31,

2021, 2020 and 2019)
Supplementary Schedules
Sustainability Report
 PART I – BUSINESS AND GENERAL INFORMATION

Item 1. Business

1) Business Development

(a) Form and Year of Organization

BDO Unibank, Inc. (BDO or the "Bank"), originally known as Acme Savings Bank, was
acquired by the SM Group in 1976. The SM Group is one of the largest conglomerates in
the Philippines, with substantial interests in financial services, real estate development, and
tourism and entertainment, founded around its core business in commercial centers and
retailing. BDO listed its shares on the Philippine Stock Exchange (PSE) on 21 May 2002.

BDO is now the market leader in most of its core business lines following its merger with
Equitable PCI Bank (EPCI) in May 2007. The Bank offers a complete array of products and
services, i.e. Retail Banking, Lending (Corporate, Commercial, Consumer, and SME),
Treasury, Trust, Credit Cards, Corporate Cash Management and Remittances. Through its
subsidiaries, the Bank offers Leasing and Financing, Investment Banking, Private Banking,
Bancassurance, Insurance Brokerage and Stock Brokerage services. It has one of the
largest branch networks, with 1,470 operating domestic branches (including 288 BDO
Network Bank, Inc. (BDO Network) (formerly One Network Bank, Inc.) branches) and two
full-service branches in Hong Kong and Singapore. As of 31 December 2021, its network
includes 16 overseas remittance and representative offices across Asia, North America,
Europe and the Middle East, and 4,484 automated teller machines (ATMs) (including 332
BDO Network ATMs), 624 cash deposit machines and 9 self-service teller machines.

Over the past several years, the Bank has experienced significant growth. This resulted
from organic growth arising from a wider array of products and services, as well as through
mergers and acquisitions of banks. Sustaining earlier gains, the Bank is currently the largest
bank in the Philippines in terms of total assets, loans, deposits and trust assets as of 31
December 2021.

BDO's diverse subsidiaries and investments in allied undertakings provide an extensive

range of banking and other financial services. The Bank's subsidiaries and associates as of
31 December 2021 are as follows:

Philippine Subsidiaries % Interest Held

Averon Holdings Corp. 100%
BDO Insurance Brokers, Inc. 100%
BDO Private Bank, Inc. 100%
BDO Finance Corporation 100%

SEC FORM 17-A 4

 BDO Rental, Inc. 100%
BDO Securities Corporation 99.99%*
BDO Strategic Holdings, Inc. 100%
BDO Capital & Investment Corporation 99.88%
BDO Life Assurance Company, Inc. 97%
BDO Leasing and Finance, Inc. 87.43%
BDO Network Bank, Inc. 84.87%
Armstrong Securities, Inc. 80%
Equimark – NFC Development Corp. 60%
Foreign Subsidiaries % Interest Held
BDO Remit (Canada), Ltd. 100%
BDO Remit (Japan), Ltd. 100%
BDO Remit (Macau), Ltd. 100%
BDO Remit (USA), Inc. 100%
BDO Remit (UK) Ltd. 100%
BDO Remit (Spain) S.A. 100%
CBN Greece S.A. 99.92%
BDO Remit Limited 100%
BDORO Europe Ltd. 100%
BDO Remit International Holdings B.V. 96.32%
Associates % Interest Held
SM Keppel Land, Inc. 50%
Taal Land, Inc. 33.33%
Northpine Land, Inc. 20%
NLEX Corporation (formerly Manila North Tollways Corporation) 11.70%
*97.35% owned via BDO Cap and 2.65% directly owned by BDO

None of the Bank's subsidiaries and associates is under any bankruptcy, receivership or
similar proceedings. Further, such subsidiaries and associates have not engaged in any
material reclassification, merger, consolidation or purchase or sale of a significant amount
of assets that is not in the ordinary course of business.

2) Business of Issuer

(i) Principal Products and Services

BDO offers a wide array of Peso, Dollar, and Third Currency deposit products and services
catering to a broad and diversified client base. These products cut across all age groups and

SEC FORM 17-A 5

 customer profiles (such as kids, young professionals, entrepreneurs, OFWs and their
beneficiaries and retirees). Further details on the Bank's various deposit products can be
accessed at its website www.bdo.com.ph.

Remittance

BDO's strength in providing top remittance services lies in its extensive international reach
spanning Asia, Europe, North America, and the Middle East. On the distribution side, a
strong domestic coverage consisting of the Bank's wide branch network and remittance
partners that include, among others, ShoeMart (SM), thrift banks, pawnshops, as well as
other financial service partners, complements the Bank's international presence. BDO also
has tie-ups with SM and its partner establishments, as well as food outlets (like Jollibee and
Max's) that provide clients with unique value-added services such as gift and food remittance
delivery.

Trust Services

BDO has created and grown its trust services and investment product offerings to provide
solutions for every kind of client or investor need under a trust or an agency agreement. It is
currently the dominant player in the local trust industry and is the first local financial institution
to breach the PhP 1 trillion assets under management (AUM) threshold as of end-2016. In
the Unit Investment Trust Fund business, BDO also has a lion's share, a testament to its
investment expertise.

Treasury

The Bank provides treasury products and services to clients ranging from retail, middle
market and large corporates, both onshore and offshore. These services include purchase
and sale of foreign exchange, fixed income securities as well as offering hedging tools (in
the form of derivatives) to mitigate the clients’ interest and foreign exchange risks. As the
bank is committed to be its clients’ partner for growth, the bank holds periodic economic
briefings and forums to keep its clients abreast of the financial market conditions. This also
serves as a venue for the bank to listen to the clients’ needs and offer solutions. On several
occasions, the Bank has been recognized and has been a recipient of various awards in the
area of foreign exchange and fixed income securities.

Transaction Banking

BDO's transaction-based services provide high value-added cash management government

entities, and small- and medium-enterprises (SMEs). The Bank's electronic banking
services, which include the Bank's over 4,439 ATMs nationwide (including 275 ATMs under
BDO Network), 599 cash deposit machines and five self-service tller machines, as well as
browser-based, mobile app, and landline banking facilities, allow customers to access their
accounts and perform an extensive range of banking transactions at their convenience
anytime and anywhere. Meanwhile, the Bank's debit card facility lets customers enjoy the

SEC FORM 17-A 6

 convenience of hassle-free cashless payment and easy cash access using either pre-loaded
or account-funded cards

Credit Cards

In the credit card industry, BDO issues the most brands in the country, namely Mastercard,
Visa, JCB, UnionPay, Diners Club and American Express, including corporate and tie-up
cards with different companies.

The bank likewise dominates the merchant acquiring business in the Philippines with BDO
POS terminals being the pioneering terminals in the industry to accept the six (6) credit card
brands and all locally issued ATM/Debit Cards.

Investment Banking

Through its subsidiary, BDO Capital & Investment Corp., the Bank provides expertise and
optimal solutions to address the capital raising needs of corporations and government
entities plus meet the investment needs of retail and institutional investors. The Bank’s
strong origination and structuring capabilities, robust distribution network, dominant
presence in both the equities and capital markets, and established track record all highlight
BDO’s brand of investment banking.

Insurance

The Bank provides its clients non-life and group life insurance through BDO Insurance
Brokers, Inc., a wholly owned subsidiary. The Bank also has a bancassurance license with
BDO Life that permits it to market and sell individual life insurance products through its
nationwide network, permitting customers access to a wide array of insurance products.

Trade Services

Trade finance plays a key role in the Bank. BDO's commitment to the trade business is
reflected in its significant investments in technology, processing capabilities and people.
BDO's strategy is to be able to provide a variety of trade solutions that fit clients'
requirements at the least cost possible. We take a proactive role in finding out what our
clients need and customize trade solutions to meet these needs.

Given BDO's leading standing in the industry and broad client coverage, BDO is able to
capture a significant market share of customers' trade finance transactions.

BDO has the ability to offer competitive pricing because of its access to low-cost funding as
well as preferential pricing from its network of correspondent bank relationships.

Trade transactions are being serviced in 5 Trade Processing Centers geographically located
across the country with 3 centers in Metro Manila and one each in Cebu and Davao. These

SEC FORM 17-A 7

 centers are manned by around 100 employees who are trained in all aspects of international
trade processing. Moreover, each center has a dedicated Customer Service team who are
equipped to provide prompt response to clients' inquiries and concerns. We have also
implemented groundbreaking services in the Philippines which include weekend banking
and extended banking hours for our domestic branch network.

BDO is also able to service trade requirements of clients who would like to open their Letters
of Credit offshore through the trade capabilities of BDO Hong Kong and BDO Singapore
branches.

BDO offers a wide variety of documentary products and services including: 1) Letters of
Credit (LC); 2) Import LC Openings and Negotiations; 3) Domestic LC; 4) Standby LCs; 5)
Trust Receipt Financing; 6) Export Letters of Credit; 7) Export LC Advising and Confirmation;
8) Export Advances; 9) Export Bills Purchase; 10) Non-Letters of Credit; 11) Open account
remittances; 12) Documents against Acceptance; and, 13) Documents against Payment.

International Desks

The International Desks (IDesks) of BDO's Institutional Banking Group comprise teams of
relationship managers with international and local banking experience, dedicated to address
the financial needs of foreign companies and nationals conducting business and/or with
business interests, or residing in the Philippines, as well as embassies, diplomats,
multilateral organisations, foreign chambers of commerce and international schools. IDesks'
teams have been organized along geographic lines: ASEAN, China, EU, Japan, South
Korea, North America/Australia and New Zealand, and Taiwan. Furthermore, several IDesks
team members speak Japanese, Korean and the Chinese dialects of Mandarin and Fookien.
In addition, IDesks' Multilateral and ECA (Export Credit Agency) Desk manage and facilitate
specialized guarantee facilities and wholesale long term loan facilities for eligible clients and
projects sourced from multilateral organizations such as the Asian Development Bank and
the World Bank's International Finance Corporation; international export credit agencies
such as the Japan Bank of International Cooperation and the Korea Export Import Bank; and
domestically from the specialized lending facilities of the Development Bank of the
Philippines, Land Bank, and the Social Security System.

Leasing

BDO Leasing and Finance provides leasing and financing products to commercial clients.
Leasing products include direct leases and sale and leaseback arrangements. Its financing
products consist of commercial and consumer loans, installment paper purchases,
receivables discounting and factoring. Assets financed include automobiles, trucks, office
equipment, industrial, agricultural and office machinery, real property, and financial assets
such as receivables.

(ii) Distribution Methods of Products or Services

SEC FORM 17-A 8

 The Bank's products and services are available mainly through the branches, but select
services are also accessible through other channels such as call centers, mobile and landline
telephones, internet, and point-of-sale terminals The Bank's extensive distribution network
provides it good market coverage that is superior to many of its competitors. Aside from a
branch in Hong Kong and Singapore, and a consolidated domestic network of 1,542
operating domestic branches (including of 351 branches of BDO Network Bank, Inc.), the
Bank has 4,484 ATMs (including of 332 ATMs under BDO Network Bank), 624 Cash Deposit
Machines and 9 self-service teller machines as of 31 December 2021.

The Bank’s foreign operation is comprised of banking branches in Hong Kong and Singapore
along with various remittance subsidiaries operating in Asia, Europe, and the United States.

(iii) Status of Publicly Announced New Products or Service

None

(iv) Competition

The Philippine universal and commercial banking sector consists of 21 universal and 25
commercial banks. Of the 21 universal banks, 12 are private universal domestic banks, 6
are branches of foreign universal banks and 3 are government-controlled universal banks.
Of the 25 commercial banks, 5 are private commercial domestic banks, 18 are branches of
foreign banks and 2 are subsidiaries of foreign banks.

The total assets of the universal/commercial banking system as of 31 December 2021

reached P19.25 trillion.

As of 31 December 2021, the liabilities and capital liabilities of the universal/commercial

banking system amounted to P16.90 trillion, while total deposits were at P15.02 trillion. The
total capital accounts of the universal/commercial banking system amounted to P2.35 trillion
as of December 2021.

Note: All the data used in the discussion above are from the BSP.

(v) Transactions with and/or Dependence on Related Parties

In the ordinary course of business, the Bank has loans, deposits and other transactions with
its related parties, and with certain directors, officers, stockholders and related interest
(DOSRI). These loans and other transactions are made on the same terms as with other
individuals and businesses of comparable risks and in compliance with all regulatory
requirements.

(vi) Patents, Trademarks, Licenses, Franchises, Concession, Royalty Agreement or labor

contracts including duration

SEC FORM 17-A 9

 The Bank has registered the following trademarks with the Intellectual Property Office of the
Philippines:

Trademarks Duration

1 Banco De Oro May 12, 2011 to May 12, 2021

2 BDO Kabayan Auto Loan September 13, 2013 to September 13, 2023

3 BDO Kabayan Home Loan September 13, 2013 to September 13, 2023

4 BDO Kabayan Loans September 13, 2013 to September 13, 2023

5 BDO Remit Cash Cards September 13, 2013 to September 13, 2023

6 BDO Remit & Device September 13, 2013 to September 13, 2023

7 BDO Kabayan Personal Loan September 13, 2013 to September 13, 2023

8 BDO Cash Management September 13, 2013 to September 13, 2023

9 BDO Asenso Kabayan and Logo September 13, 2013 to September 13, 2023

10 BDO Kabayan Savings September 13, 2013 to September 13, 2023

11 BDO Asenso Kabayan & Device September 13, 2013 to September 13, 2023

12 BDO Kabayan Bills Bayad September 13, 2013 to September 13, 2023

13 BDO Remit September 13, 2013 to September 13, 2023

BDO Banco De Oro Kabayan Home Loan &

14 September 13, 2013 to September 13, 2023
Device

15 BDO (Stylized and In Color) September 13, 2013 to September 13, 2023

16 BDO On Site & Device September 13, 2013 to September 13, 2023

17 BDO Banco De Oro Kabayan Loan & Device September 13, 2013 to September 13, 2023

18 BDO Banco De Oro Personal Loan & Device September 13, 2013 to September 13, 2023

19 BDO Banco De Oro Auto Loan & Device September 13, 2013 to September 13, 2023

20 BDO Remit & Device September 13, 2013 to September 13, 2023

21 BDO Banco De Oro in class 36 September 13, 2013 to September 13, 2023

22 BDO Unibank (wordmark) September 13, 2013 to September 13, 2023

SEC FORM 17-A 10

 Trademarks Duration

23 BDO Unibank (Stylized and in Color) September 13, 2013 to September 13, 2023

24 BDO Unibank (Stylized and in Color) in class 16 September 13, 2013 to September 13, 2023

25 BDO (Stylized and in Color) in class 16 May 9, 2014 to May 9, 2024

26 BDO Banco De Oro device in class 16 May 4, 2014 to May 4, 2024

27 BDO Securities Corporation April 29, 2014 to April 29, 2024

28 BDO Capital & Investment Corporation May 4, 2014 to May 4, 2024

29 BDO Foundation, Inc. May 2, 2014 to May 2, 2024

30 BDO Private Bank in class 16 & 36 May 4, 2014 to May 4, 2024

31 BDO Leasing May 4, 2014 to May 4, 2024

32 BDO Insurance Brokers, Inc. May 4, 2014 to May 4, 2024

33 bdo.com.ph May 4, 2014 to May 4, 2024

34 BDORO Europe Ltd. (blue) in class 16 & 36 April 3, 2014 to April 3, 2024

BDORO Europe Ltd. (blue & yellow) in class 16

35 April 3, 2014 to April 3, 2024
& 36

36 BDORO (color) in class 16 & 36 May 8, 2014 to May 8, 2024

37 BDORO (monochrome) in class 16 & 36 May 8, 2014 to May 8, 2024

38 Kabayan College Secure June 30, 2008 to June 30, 2018

39 Kabayan College Secure & Device June 30, 2008 to June 30, 2018

40 Kabayan Home Loan June 23, 2008 to June 23, 2018

41 Kabayan Auto Loan June 23, 2008 to June 23, 2018

42 Kabayan Personal Loan June 30, 2008 to June 30, 2018

43 We find ways November 20, 2014 to November 20, 2024

44 BDO Banco De Oro (Stylized) in class 36 May 7, 2015 to May 7, 2025

45 #bdobancodeoro July 23, 2015 to July 23, 2025

46 #bdounibank July 23, 2015 to July 23, 2025

SEC FORM 17-A 11

 Trademarks Duration

47 BDO Padala & Device February 11, 2016 to February 11, 2026

48 #bdowefindways December 17, 2015 to December 17, 2025

49 #wefindways April 7, 2016 to April 7, 2026

50 #bdoremit December 17, 2015 to December 17, 2025

51 #bdo December 17, 2015 to December 17, 2025

52 One Network A Rural Bank of BDO (horizontal) June 2, 2016 to June 2, 2026

53 One Network A Rural Bank of BDO (vertical) June 2, 2016 to June 2, 2026

One Network A Savings Bank of BDO

54 June 2, 2016 to June 2, 2026
(horizontal)
One Network A Savings Bank of BDO
55 June 2, 2016 to June 2, 2026
(vertical)
One Network A Rural Bank of BDO
56 June 23, 2016 to June 23, 2026
Unibank (horizontal)
One Network A Rural Bank of BDO Unibank
57 June 2, 2016 to June 2, 2026
(vertical)
One Network A Savings Bank of BDO Unibank
58 June 23, 2016 to June 23, 2026
(horizontal)
One Network A Savings Bank of BDO Unibank
59 June 2, 2016 to June 2, 2016
(vertical)
One Network A Rural Bank of BDO (in series
60 June 2, 2016 to June 2, 2026
horizontal)
One Network A Rural Bank of BDO (in series
61 June 2, 2016 to June 2, 2026
vertical)
One Network A Savings Bank of BDO (in series
62 June 2, 2016 to June 2, 2016
horizontal)
One Network A Savings Bank of BDO (in series
63 July 14, 2016 to July 14, 2026
vertical)
One Network A Rural Bank of BDO Unibank (in
64 July 14, 2016 to July 14, 2026
series horizontal)
One Network A Rural Bank of BDO Unibank (in
65 July 14, 2016 to July 14, 2026
series vertical)
One Network A Savings Bank of BDO Unibank
66 July 7, 2016 to July 7, 2026
(in series horizontal)

SEC FORM 17-A 12

 Trademarks Duration

One Network A Savings Bank of BDO Unibank

67 July 7, 2016 to July 7, 2026
(in series vertical)

68 ONB July 7, 2016 to July 7, 2026

69 One Network July 28, 2016 to July 28, 2026

70 BDO Life (wordmark) August 4, 2016 to August 4, 2026

71 BDO Life (monochrome black) September 8, 2016 to September 8, 2026

72 BDO Life (monochrome blue) September 8, 2016 to September 8, 2026

73 BDO Life (reverse black) October 6, 2016 to October 6, 2026

74 BDO Life (reverse blue) October 6, 2016 to October 6, 2026

75 We Protect (monochrome black) September 1, 2016 to September 1, 2026

76 We Protect (in color) September 1, 2016 to September 2, 2026

77 We Protect (reverse) September 8, 2016 to September 8, 2026

78 We Protect (word) September 8, 2016 to September 8, 2026

79 BDO Life (in color) September 8, 2016 to September 8, 2026

80 BDO Life (reverse in color) September 8, 2016 to September 8, 2026

81 BDO Invest Online December 8, 2016 to December 8, 2026

82 Master the Art of Trading December 8, 2016 to December 8, 2026

83 Diamond Rewards November 5, 2015 to November 5, 2025

84 Sapphire Rewards 20 February 2015 to 20 February 2025

85 BDO Rewards (vertical) November 10, 2014 to November 10, 2024

86 BDO Rewards (horizontal) November 10, 2014 to November 10, 2024

87 Emerald Rewards November 10, 2014 to November 10, 2024

88 Cash Agad (device) August 4, 2016 to August 4, 2026

89 Cash Agad in Partnership with BDO October 27, 2016 to October 27 2026

90 www.e-onb.com.ph March 29, 2012 to March 29, 2022

SEC FORM 17-A 13

 Trademarks Duration

91 www.onenetworkbank.com.ph March 29, 2012 to March 29, 2022

92 my life my bdo vertical April 27,2017 to April 27, 2027

93 my life my bdo horizontal April 27,2017 to April 27, 2027

94 just debit with bdo horizontal May 11,2017 to May 11,2027

95 just debit with bdo vertical May 11,2017 to May 11,2027

96 My Life, My BDO Debit December 28, 2017 to December 28, 2027

97 My Life, My BDO Debit May 11, 2018 to May 11, 2028

98 BDO Kabayan March 1, 2018 to March 1, 2028

99 BDO Kabayan December 21, 2017 to December 21, 2027

100 BDO Kabayan December 21, 2017 to December 21, 2027

101 BDO Kabayan December 21, 2017 to December 21, 2027

102 BDO Kabayan December 21, 2017 to December 21, 2027

103 BDO Kabayan November 23, 2017 to November 23, 2027

104 BDO Unibank May 31, 2018 to May 31, 2028

105 BDO Unibank (Device) May 31, 2018 to May 31, 2028

106 BDO Banco De Oro (Device) May 31, 2018 to May 31, 2028

107 BDO Remit (Device) May 31, 2018 to May 31, 2028

108 BDO We Find Ways (Dreamline) February 3, 2018 to February 3, 2028

109 BDO We Find Ways (Dreamline) February 3, 2018 to February 3, 2028

110 BDO We Find Ways (Dreamline) February 3, 2018 to February 3, 2028

111 BDO We Find Ways (Dreamline) February 3, 2018 to February 3, 2028

112 myPERA April 5, 2018 to April 5, 2028

113 myBDOPERA April 5, 2018 to April 5, 2028

114 MyPERA April 5, 2018 to April 5, 2028

SEC FORM 17-A 14

 Trademarks Duration

115 MyBDOPERA April 5, 2018 to April 5, 2028

116 BDOPERA April 12, 2018 to April 12, 2028

117 BDO Easy Retirement Plan October 14, 2018 to October 14, 2028

118 ERP June 21, 2018 to June 21, 2028

119 BDO ERP April 12, 2018 to April 12, 2028

120 BDO NETWORK BANK August 29, 2019 to August 29, 2029

121 BDO NETWORK BANK, A RURAL BANK August 29, 2019 to August 29, 2029

122 BDO NETWORK, A RURAL BANK August 29, 2019 to August 29, 2029

123 BDO NETWORK BANK, INC. August 29, 2019 to August 29, 2029

124 WE FIND WAYS July 28, 2019 to July 28, 2029

Insure me, insurance made easy (white

125 December 9, 2018 to December 9, 2028
background
Insure me, insurance made easy (blue
126 December 9, 2018 to December 9, 2028
background)
Insure me, insurance made easy @SM (white
127 December 9, 2018 to December 9, 2028
background)
Insure me, insurance made easy @SM (blue
128 December 9, 2018 to December 9, 2028
background)

129 Insure me (white background) September 9, 2018 to September 9, 2028

130 Insure me (blue background) September 9, 2018 to September 9, 2028

131 WWW.INSUREME.NET.PH December 30, 2018 to December 30, 2028

132 WWW.INSUREME.ORG.PH December 30, 2018 to December 30, 2028

BDO WE FIND WAYS

133 November 7, 2019 to November 7, 2029
Application Number: 42019503945
BDO We find ways (in black)
134 November 7, 2019 to November 7, 2029
Application Number: 42019503948
BDO We find ways (in blue)
135 November 7, 2019 to November 7, 2029
Application Number: 42019503950
BDO We find ways (in blue & yellow)
136 December 5, 2019 to December 5, 2029
Application Number: 42019503952

SEC FORM 17-A 15

 Trademarks Duration

WE FIND WAYS (wordmark)

137 January 19, 2020 to January 19, 2030
Application Number: 42019503996
WE FIND WAYS
138 January 19, 2020 to January 19, 2030
Application Number: 42019503997
BDO (wordmark)
139 November 7, 2019 to November 7, 2029
Application Number: 42019503940
We find ways (in blue)
140 November 7, 2019 to November 7, 2029
Application Number: 42019503941
We find ways (in yellow)
141 November 7, 2019 to November 7, 2029
Application Number: 42019503942

142 WWW.BDOINSURE.COM.PH June 16, 2019 to June 16, 2029

BDO Network Bank Device

143 August 8, 2019 to August 8, 2029
Registration Number: 42018021523
BDO Network Bank Device (in blue bg)
144 February 15, 2020 to February 15, 2030
Registration Number: 42018021524
BDO Network Bank Device (in blue font)
145 February 15, 2020 to February 15, 2030
Registration Number: 42018021525
BDO Network Bank Device (in yellow bg)
146 February 15, 2020 to February 15, 2030
Registration Number: 42018021526
BDO Network Bank Device (in black font)
147 December 1, 2019 to December 1, 2029
Registration Number: 42018021527
BDO Network Bank Device (in black bg)
148 December 1, 2019 to December 1, 2029
Registration Number: 42018021528
BDO Network Bank Device (vertical)
149 December 1, 2019 to December 1, 2029
Registration Number: 42018021529
BDO Network Bank Device (vertical in blue bg)
150 January 2, 2020 to January 2, 2030
Registration Number: 42018021530
BDO Network Bank Device (vertical in blue font)
151 December 1, 2019 to December 1, 2029
Registration Number: 42018021531
BDO Network Bank Device (vertical in black bg)
152 December 1, 2019 to December 1, 2029
Registration Number: 42018021532
BDO Network Bank Device (vertical in black font)
153 August 8, 2019 to August 8, 2029
Registration Number: 42018021533
BDO Network Bank Device (vertical in yellow bg)
154 August 8, 2019 to August 8, 2029
Registration Number: 42018021534

SEC FORM 17-A 16

 Trademarks Duration

BDO Network Bank Device (horizontal 1-liner)

155 August 8, 2019 to August 8, 2029
Registration Number: 42018021535
BDO Network Bank Device (horizontal 1-liner
156 blue bg) August 8, 2019 to August 8, 2029
Registration Number: 42018021536
BDO Network Bank Device (horizontal 1-liner
157 blue font) August 8, 2019 to August 8, 2029
Registration Number: 42018021537
BDO Network Bank Device (horizontal 1-liner
158 black font) August 8, 2019 to August 8, 2029
Registration Number: 42018021538
BDO Network Bank Device (horizontal 1-liner
159 black bg) January 12, 2020 to January 12, 2030
Registration Number: 42018021539
BDO Network Bank Device (horizontal 1-liner
160 yellow bg) January 12, 2020 to January 12, 2030
Registration Number: 42018021540
WE FIND WAYS wordmark
161 July 28, 2019 to July 28, 2029
Registration Number: 42019501752
BDO Network Bank Device (horizontal 2-liner
162 yellow bg) April 4, 2020 to April 4, 2030
Registration Number: 42019012899
BDO Network Bank Device (vertical 2-liner
163 yellow bg) April 4, 2020 to April 4, 2030
Registration Number: 42019012898
FIND YOUR WAY wordmark
164 June 28, 2020 to June 28, 2030
Registration Number: 42019505926
BDO FINANCE wordmark
165 November 20, 2020 to November 20, 2030
Registration Number: 42020502655
BDO FINANCE CORP. wordmark
166 November 20, 2020 to November 20, 2030
Registration Number: 42020502658
BDO Finance Device Vertical
167 December 6, 2020 to December 6, 2030
Registration Number: 42020502662
BDO Finance Device Horizontal
168 December 6, 2020 to December 6, 2030
Registration Number:42020502661
BDO Prime Device horizontal
169 December 18, 2020 to December 18, 2030
Registration Number: 42020504860

SEC FORM 17-A 17

 Trademarks Duration

BDO Prime Device horizontal

170 December 18, 2020 to December 18, 2030
Registration Number: 42020504857
BDO Prime Device horizontal (in black bg)
171 December 18, 2020 to December 18, 2030
Registration Number: 42020504862
BDO Prime Device A Service of BDO Securities
172 Corporation horizontal (in black bg) January 15, 2021 to January 15, 2031
Registration Number: 42020504858
WWW.BDO-INSURE.COM.PH
173 June 16, 2019 to June 16, 2029
Registration Number: 42018503123
WWW.BDO-INSUREME.COM.PH
174 June 16, 2019 to June 16, 2029
Registration Number: 42018503124
WWW.BDOINSUREME.COM.PH
175 June 16, 2019 to June 16, 2029
Registration Number: 42018503126
BDO Insure Device (horizontal logo blue bg)
176 July 11, 2019 to July 11, 2029
Registration Number: 42018504220
BDO Insure Device (horizontal)
177 July 11, 2019 to July 11, 2029
Registration Number: 42018504221
BDO Insure Device (vertical logo blue bg)
178 July 11, 2019 to July 11, 2029
Registration Number: 42018504222
BDO Insure Device (vertical logo)
179 July 11, 2019 to July 11, 2029
Registration Number: 42018504223
BDO INSURE wordmark
180 July 11, 2019 to July 11, 2029
Registration Number: 42018504224
BDO PRIME (wordmark)
181 February 26, 2021 to February 26, 2031
Registration No. 42020504585
BDO REMIT (wordmark)
182 June 28, 2020 to June 28, 2030
Registration Number: 42019503943
BDO Prime A Service of BDO Securities
183 Corporation February 26, 2021 to February 26, 2031
Registration No: 42020504861
BDO Prime A Service of BDO Securities
184 Corporation February 26, 2021 to February 26, 2031
Registration No: 42020504859
BDO Prime
185 August 6, 2021 to August 6, 2031
Registration No: 42020506351
BDO Prime
186 October 17, 2021 to October 17, 2031
Registration No: 42020506353

SEC FORM 17-A 18

 Trademarks Duration

BDO Prime
187 August 29, 2021 to August 29, 2031
Registration No: 42020506354
BDO Prime (blue font)
188 August 13, 2021 to August 13, 2031
Registration No: 42020506349
BDO Prime (blue bg vertical)
189 August 6, 2021 to August 6, 2031
Registration No: 42020506352
BDO Prime (Device in color horizontal)
190 August 6, 2021 to August 6, 2031
Registration No: 42020506350
BDO Prime (Device in color horizontal blue bg)
191 August 8, 2021 to August 8, 2031
Registration No: 42020506348
BDO PENSION 360
192 July 30, 2021 to July 30, 2031
Registration No: 42021506817
BDO PENSION 360°
193 July 30, 2021 to July 30, 2031
Registration No: 42021506819
BDO EASY INVESTMENT PLAN
194 July 30, 2021 to July 30, 2031
Registration No: 42021506820
BDO EASY INVEST PLAN
195 July 30, 2021 to July 30, 2031
Registration No: 42021506818
BDO EASY PENSION PAY
196 July 30, 2021 to July 30, 2031
Registration No: 42021506816
BDO Prime A Service of BDO Securities
197 Corporation (black font vertical logo) September 10, 2021 to September 10, 2031
Registration No: 42021506515
BDO Prime A Service of BDO Securities
198 Corporation (blue font vertical logo) September 10, 2021 to September 10, 2031
Registration No: 42021506514
BDO Prime A Service of BDO Securities
199 Corporation (in color vertical logo) September 10, 2021 to September 10, 2031
Registration No: 42021506516
BDO Prime A Service of BDO Securities
200 Corporation (blue font horizontal logo) September 10, 2021 to September 10, 2031
Registration No: 42021506513
BDO Prime A Service of BDO Securities
201 Corporation (vertical logo blue bg) September 10, 2021 to September 10, 2031
Registration No: 42021506512
BDO Prime A Service of BDO Securities
202 August 29, 2021 to August 29, 2031
Corporation (horizontal logo)

SEC FORM 17-A 19

 Trademarks Duration
Registration No: 42021506510

BDO Prime A Service of BDO Securities

203 Corporation (horizontal logo blue bg) August 29, 2021 to August 29, 2031
Registration No: 42021506509
BDO Trade (horizontal logo black font)
204 November 25, 2021 to November 25, 2031
Registration No: 42021515870
BDO Trade (vertical logo black font)
205 November 25, 2021 to November 25, 2031
Registration No: 42021515868
BDO Trade (horizontal logo blue font)
206 November 25, 2021 to November 25, 2031
Registration No: 42021515874
BDO Trade (vertical logo blue font)
207 November 25, 2021 to November 25, 2031
Registration No: 42021515873
BDO Trade (horizontal logo blue bg)
208 November 25, 2021 to November 25, 2031
Registration No: 42021515867
BDO Trade (vertical logo blue bg)
209 November 25, 2021 to November 25, 2031
Registration No: 42021515872
BDO Trade (horizontal logo)
210 November 25, 2021 to November 25, 2031
Registration No: 42021515876
BDO Trade (vertical logo)
211 November 25, 2021 to November 25, 2031
Registration No: 42021515871
BDO Trade (horizontal logo white font blue bg)
212 November 25, 2021 to November 25, 2031
Registration No: 42021515875
BDO Trade (vertical logo white font blue bg)
213 November 25, 2021 to November 25, 2031
Registration No: 42021515869
BDO Network Bank, a
214 Savings Bank November 12, 2021 to November 12, 2031
Registration No: 42021518949
BDO Network, a
215 Savings Bank November 12, 2021 to November 12, 2031
Registration No: 42021518948

(vii) Governmental Approval of Principal Products or Services

The Bank secures approval from the Bangko Sentral ng Pilipinas (BSP) for all its products
and services, as required.

SEC FORM 17-A 20

(viii) Effect of Existing or Probable Governmental Regulations on the Business

Being a banking institution subject to the General Banking Law and banking regulations,
BDO is under the supervision of the BSP, whose approval BDO requires to undertake
certain activities. BDO strictly complies with the BSP requirements in terms of reserves,
liquidity position, limits on loan exposure, cap on foreign exchange holdings, provision for
losses, anti-money laundering provisions and other regulatory requirements.

(ix) Estimate of Amount Spent for Research and Development Activities

This is not applicable to the Bank.

(x) Total Number of Employees

The Bank has a total of 38,873 employees as of 31 December 2021 broken down as follows:

Non-Officers Officers TOTAL

Total for Parent Company 17,149 15,165 32,314
Head Office 2,561 8,538 11,000
Branches 14,588 6,627 21,215
Total for Subsidiaries 1,919 4,640 6,550
TOTAL EMPLOYEES 19,068 19,805 38,873

The Bank's Collective Bargaining Agreement (CBA) with Banco De Oro Employees
Association (BDOEA) covers staff level employees,
except those as expressly excluded in the Agreement. The Agreement is effective for a
period of five (5) years from 1 November 2020 to 31 October 2025. BDOEA is affiliated with
Associated Labor Unions (ALU).

The Bank has not suffered any labor strikes in the past 30
years, and considers the maintenance of harmonious relations with its employees and the
Union as one of its key human capital agenda.

The Bank anticipated having approximately 39,000 total employees (in all levels; including
those not included in the CBA) by 31 December 2019.

(xi) Risk Management

Risk management at BDO begins at the highest level of the organization. At the helm of the
risk management infrastructure is the Board of Directors who is responsible for establishing

SEC FORM 17-A 21

 and maintaining a sound risk management system. The Board of Directors assumes
oversight over the entire risk management process.

The Board of Directors has the ultimate responsibility for all risks taken by the Bank. It
regularly reviews and approves the institution's tolerance for risks, as well as, the business
strategy and risk philosophy of the Bank. It takes the lead in disseminating the institution's
risk philosophy and control culture throughout the organization. It approves strategies and
implementing policies affecting the management of all types of risks relating to the Bank's
activities. It sets the risk-based organizational structure that will implement and ensure the
effectiveness of the overall risk control system of the Bank. Towards this end, it is regularly
updated on developments that could materially affect the Bank's liquidity position or the value
of its resources. Likewise, the Board is responsible for overseeing the investment and credit
activities of the Bank.

The Board of Directors has created committees tasked with key functions in the over-all risk
framework of the Bank. The Risk Management Committee (RMC) is responsible for the
development and oversight of the Bank's risk management program. The Executive
Committee (EXCOM) has responsibility over the approval processes of the Bank's loans and
investments, property-related proposals, as well as, other credit-related issues over a
prescribed amount delegated by the Board of Directors. The Asset and Liability Committee
(ALCO) is tasked with managing the Bank's balance sheet and off-balance sheet activities,
maintaining adequate liquidity, ensuring sufficient capital and appropriate funding to meet all
business requirements within regulatory limits. The Risk Management Group (RMG) is
mandated to adequately and consistently evaluate, manage, control, and monitor the overall
risk profile of the Bank's activities across the different risk areas (i.e. credit, liquidity, market,
interest rate, operational, and environmental and social risks).

The Bank operates an enterprise-wide risk management system to address the risks it faces
in its banking activities, including credit, liquidity, market, interest rate, operational risks
(including business continuity risk, IT risk, information security risk, data privacy risk, and
social media risk), consumer protection risk, and environmental & social risks. The Bank's
Risk Management Committee has overall responsibility for the Bank's risk management
system and sets risk management policies across the full range of risks to which the Bank
is exposed. It is responsible for approving the risk management plan developed by
management, defining the policies, limits, and strategies for managing and controlling the
major risks of the Bank. It oversees the system of limits of discretionary authority that the
Board of Directors delegates to management under its purview, ensures that the system of
limits of discretionary authority remains effective, that the limits are observed, and immediate
corrective actions are taken whenever limits are breached. It is also responsible for
evaluating the risk management plan as needed to ensure its continued relevance,
comprehensiveness and effectiveness.

The Risk Management Committee is a Board-Level Committee composed of three (3)

members of the Board of Directors, with Vicente S. Perez, Jr. (Independent Director) as
Chairman, and Nestor V. Tan and Dioscoro I. Ramos (Lead Independent Director) as

SEC FORM 17-A 22

 members. Christopher A. Bell-Knight and Jones M. Castro, Jr. serve as Advisors alongside
Vipul Bhagat as Independent Advisor.

Below is the attendance of the members for the Committee meetings in 2021:

No. of Meetings Total No. of Percentage

Attended Meetings
Jones M. Castro, Jr.* 5 5 100%
Vicente S. Perez, Jr.** 7 7 100%
Dioscoro I. Ramos 11 11 92%
Nestor V. Tan 12 12 100%
* RMC Chairman until 23 April 2021
** RMC Chairman beginning 23 April 2021

Item 2 – Properties

Description of Property

1) Principal Properties Owned

A. Presented below is a list of the Bank’s principal properties as of 31 December 2021

owned by the Bank and utilized as Head Offices:

No. NAME ADDRESS

1 BDO Building (Radio Marine - BDO Bldg., Sen. Gil Puyat Avenue corner Paseo de Roxas,
MTech) Brgy. Bel-Air, Makati City
2 BDO Corporate Center – BDO Corporate Tower, 7899 Makati Avenue cor. H.V. Dela
Makati North Tower Costa St., Makati City
3 BDO Corporate Center –
12 ADB Avenue Ortigas Center Mandaluyong City
Ortigas
4 BDO Salcedo Center 156 Valero St. Salcedo Village Makati City

B. Presented below is a list of the Bank’s principal properties as of 31 December 2021

owned by the Bank which are utilized as Head Offices and partly tenanted:

No. NAME ADDRESS

1 BDO Towers Paseo 8741 Paseo de Roxas Cor. Villar St. Salcedo Village Makati
2 BDO Towers Valero Valero corner Villar St., Salcedo Village, Makati City, Metro Manila
3 Dagupan Vicar Vicar Hotel Bldg. along A.B. Fernandez Ave. Brgy. Herrero Perez
Dagupan City, Pangasinan
4 Equitable Bank Tower Equitable Bank Tower, 8751 Paseo de Roxas, Makati City
5 Pacific Star Pacific Star Building, Makati Avenue, Makati City
6 Robinsons Tower Robinsons PCIBank Tower, ADB Avenue, Ortigas Center, Pasig City

SEC FORM 17-A 23

 C. Presented below is a list of the Bank’s real properties as of 31 December 2021 owned
by the Bank and utilized as BDO branches:

(a) Metro Manila Branches

No. BRANCH ADDRESS

1 A. Santos - St. James 8406 A. Santos Avenue, Sucat, Parañaque City 1700
2 ADB Avenue Ortigas Robinson's PCIBank Tower, ADB Avenue, Ortigas Center,
1600 Pasig City
3 Airport Road Airport Road corner Quirino Avenue, Baclaran, Parañaque
City
4 Alfaro - Salcedo Village GF PCCI Bldg. , 118 Leviste Street (Formerly Alfaro St.) ,
Salcedo Village, Makati City
5 Arranque - T. Alonzo 733 T. Alonzo St., Manila
6 Asia Tower - Paseo G/F Asia Tower corner Paseo De Roxas & Benavides
St.,1229 Makati City
7 Aurora Blvd - Notre Dame 0137 Aurora Blvd. corner Notre Dame St. Cubao, 1110
Quezon City
8 Aurora Blvd - Yale Aurora Blvd. corner Yale St. Cubao, Quezon City
9 Baclaran - Redemptorist Road Redemptorist Road, Baclaran, Parañaque, MM
10 Bagtikan - Chino Roces Unit 102 G/F Pryce Center Condominium, 1179 Chino Roces
Avenue Avenue
corner Bagtikan St., San Antonio Village, Makati City
11 BDO Corporate Center G/F, BDO Towers Paseo, 8741 Paseo de Roxas corner Villar
St., Salcedo Village, Bel-Air, Makati City
12 Bel Air - Gil Puyat Country Space 1 Condominium Bldg., Sen. Gil Puyat Avenue,
Bel-Air Village, 1209 Makati City
13 BGC – Fort Victoria Unit 108B, G/F, Fort Victoria Condominium, 5th Avenue cor.
Rizal Avenue, Bonifacio Global City, Fort Bonifacio, Taguig
City
14 Bicutan – Doña Soledad Ave. Lot 3 Block 1, Doña Soledad Avenue Extension, Better Living
Ext. Subd., Brgy. Don Bosco, Parañaque City
15 Blumentritt 2325 Rizal Avenue corner Antipolo St. Sta. Cruz, Manila
16 Blumentritt – Laong Laan Laong Laan St corner Blumentritt St., Brgy 516, Zone 051,
Sampaloc, Manila
17 Blumentritt - San Juan Lot 11-B, Blk. 127 Blumentritt corner Sto. Toribio St., San
Juan, Metro Manila
18 Boni - Maysilo 74 Maysilo Circle corner Boni Avenue, Mandaluyong City
19 C. Palanca - Quiapo 132 Carlos Palanca St., Quiapo, Manila
20 C. M. Recto CM Recto Avenue corner Nicanor Reyes St., Manila
21 C. M. Recto - San Sebastian 2070 C.M. Recto St.,1008 Sampaloc, Manila
22 Caloocan - Sangandaan No. 628 A. Mabini St., 1408 Sangandaan, Caloocan City
23 Corinthian Gardens BDO Leasing Center, Ortigas Avenue, Quezon City

SEC FORM 17-A 24

 No. BRANCH ADDRESS
24 Dasmariñas St. - Binondo BDO Bldg., Dasmariñas St., Binondo, 1006 Manila
25 Dian - Gil Puyat G/F EPCIB Bldg., Sen. Gil Puyat Avenue corner Dian St.,
Makati City
26 E. Rodriguez 1162 E. Rodriguez Sr. Avenue, New Manila, Quezon City
27 Edsa - Reliance St. G/F Paragon Plaza, corner Reliance St., Mandaluyong City
28 Fairview Don Mariano Marcos Avenue Fairview, Quezon City
29 Grace Park - 8th Avenue 259 Rizal Avenue Extension, Grace Park, Caloocan City
30 Grace Park - 9th Avenue 414 Rizal Avenue Extension, Grace Park, 1400 Caloocan City
31 Grace Park - 10th Avenue 359 Rizal Avenue Extension, Brgy. 62, Grace Park, Caloocan
City
32 Greenhills - Roosevelt EBC Bldg., Ortigas Avenue corner Roosevelt Avenue,
Greenhills, San Juan, MM
33 Greenhills North Unit 102-103 Sunrise Condominium, Ortigas Avenue, 1500
San Juan, MM
34 Ilaya - M. De Santos 632 M. de Santos St., Manila
35 Kalentong MRDC Bldg., Shaw Blvd. corner Gen. Kalentong St.,
Mandaluyong City
36 Las Piñas - Pamplona Alabang-Zapote Road, Pamplona, Las Piñas
37 Las Piñas - Philamlife Avenue Alabang-Zapote Road, Pamplona Tres, 1740 Las Pinas, MM
38 Leveriza - Libertad 212 Libertad St., Pasay City, Metro Manila
39 Luneta - T.M. Kalaw 707 T.M. Kalaw St. corner Churruca St. Ermita, Manila
40 Makati - Pasay Road 845 One Corporate Plaza Condominium, A. Arnaiz Avenue,
San Lorenzo, Makati City
41 Makati – Rockwell Center B 2/F Lot 3 Block 7 Rockwell Drive, Rockwell Center, Poblacion,
Makati City
42 Makati Avenue - Ayala L.V. Locsin Bldg., Ayala Avenue corner Makati Avenue, 1228
Makati City
43 Makati Cinema Square Makati Cinema Square, Pasong Tamo, 1229 Makati City
44 Malabon 725 Rizal Avenue, San Agustin, Malabon City
45 Malabon - Rizal Avenue 694 Rizal Avenue, 1470 Malabon, Metro Manila
46 Marikina - Bayanbayanan 48 Bayanbayanan Avenue, Brgy. Concepcion Uno, Marikina
City
47 Marikina - Concepcion 17 Bayan-bayanan Avenue, Concepcion, Marikina City
48 Marikina - Sumulong Highway Corner E. Dela Paz St. Amang Rodriguez Avenue, Sto. Nino,
Marikina City
49 Marulas – MacArthur Highway Lot 16 & 17 McArthur Highway Valenzuela, Metro Manila
50 Medical Plaza - Legaspi Village Unit 101, G/F Medical Plaza Makati, Amorsolo St. corner Dela
Rosa St. Legaspi Village, Makati City
51 Greenhills - Missouri 12 Missouri St., Northeast Greenhills, Brgy. Greenhills, San
Juan City
52 Muntinlupa - National Highway 8 National Highway cor. Aguila St., Brgy. Putatan, Muntinlupa

SEC FORM 17-A 25

 No. BRANCH ADDRESS
53 N. Domingo - Araneta Avenue 71 N. Domingo St. corner Katubusan St., Brgy. Rivera, San
Juan City
54 Novaliches - Forest Hills Lot 2 D 1 Quirino Avenue, Novaliches, Quezon City
55 Ortigas Avenue 209 Ortigas Avenue Greenhills, San Juan, MM
56 Ortigas - Exchange Road G/F, PSE Center, Exchange Road, Ortigas Commercial
Complex, Pasig City
57 Paco - A. Linao 1635-1641 A. Linao St., Paco, Manila
58 Padre Faura - A. Mabini A .Mabini corner Padre Faura St., 1000 Ermita, Manila
59 Pasay Libertad corner Colayco St., Pasay City
60 Paseo - Gil Puyat BDO Building, 381 Sen. Gil Puyat Avenue corner Paseo de
Roxas, Brgy. Bel-Air, Makati City
61 Paseo Tower - Makati Equitable Bank Tower, 8751 Paseo de Roxas, Makati City
62 Pasig - Danny Floro 125 Shaw Blvd. corner Danny Floro St. Pasig City
63 Pasig - Manggahan Amang Rodriguez Avenue, Manggahan, Pasig City
64 Pasig – Market Avenue 8 Market Avenue, Brgy. Palatiw, Pasig City
65 Pasig - Sixto Antonio Ave. Lot 2 B, Sixto Antonio Ave., Brgy. Kapasigan, Pasig City
Pilapil
66 Perea – Paseo G/F Universal Re Bldg., 106 Paseo de Roxas 1228 Makati
City
67 Pioneer Highlands - Madison Unit 01 (facing Madison St.) LG/F Globe Telecom Plaza 1
Bldg., Pioneer St. Corner Madison St., Mandaluyong City
68 Pitimini - Roosevelt EBC Bldg. Roosevelt Avenue corner Pitimini St., SFDM,
Quezon City
69 Plaza Sta. Cruz - Dasmariñas 7/F, 321 Dasmariñas St., Cor. Marquina St., Brgy. 290,
St. Binondo, Manila
70 President's Avenue - BF President's Avenue corner J. Elizalde St., BF Homes
Parañaque Parañaque, Metro Manila
71 Quezon Avenue - Heroes Hill 1052 Quezon Avenue, 1103 Quezon City
72 Quezon Avenue - West Lot 3-B, Quezon Ave. Extension, Brgy. West Triangle, Quezon
Triangle City
73 Quiapo - Quinta Market Quezon Blvd. corner C. Palanca St., Quiapo, Manila
74 Reposo - Makati EBC Bldg., JP Rizal corner N. Garcia (Formerly Reposo),
Makati City
75 Rizal Avenue 2502-2504 Rizal Avenue corner Cavite St. Sta. Cruz, Manila
76 Rockwell Center - Makati Lot 3 Block 7, Rockwell Drive, Rockwell Center, Poblacion,
Makati City
77 Shaw Blvd. - Stanford EBC Bldg., Shaw Blvd. corner Stanford St., Mandaluyong City
78 St. Ignatius - Katipunan BDO Bldg., 137 Katipunan Avenue, St. Ignatius, Quezon City
79 Strata 100 - Ortigas G/F Strata 100 Bldg., Don Francisco Ortigas Jr., Pasig City
80 Taft Avenue – Estarda St. 2F, Bankard Bldg., 2422 Taft Avenue, Brgy. 727, Zone 79,
Malate, 1004, Manila

SEC FORM 17-A 26

 No. BRANCH ADDRESS
81 Taft - Vito Cruz Bankard Bldg. 2422 Taft Avenue, 1004 Malate, Manila
82 Timog – South Triangle G/F President Tower, 81 Timog Ave. corner Scout Ybardolaza
St., Brgy. South Triangle, Diliman, Quezon City
83 Tomas Morato - Kamuning Corner Kamuning & Tomas Morato, Quezon City

84 Tutuban DS 17-18 Tutuban Primeblock, Tutuban Center, CM Recto,

Manila
85 U.N. Avenue - J. Bocobo EBC Bldg., UN Avenue corner J. Bocobo St., Ermita, Manila
86 V.A. Rufino – Valero G/F Chattam House, Herrrera St. corner Valero & San Agustin
St., Salcedo Village, Makati City
87 Valenzuela – Malanday 656 MacArthur Highway, Brgy. Malanday, Valenzuela City
MacArthur Highway 1444
88 West Trade Center - West Unit #1, G/F West Trade Center, West Avenue, Quezon City
Avenue
89 Yakal - Chino Roces Avenue Units 2 & 3, G/F Tower 2 Bldg. Avida Towers Makati West
Condominium cor. Yakal, Lumbayao and Malugay Sts., San
Antonio Village, Makati City

(b) Provincial Branches

No. BRANCH ADDRESS

1 Angeles – Balibago BDO Building along Ramon Tang Avenue, Diamond Subd.,
Balibago, Angeles City, Pampanga
2 Angeles - MacArthur Highway Lot 1, MacArthur Highway corner Magalang Avenue, Brgy.
Salapungan, Angeles City, Pampanga
3 Angeles - Miranda BDO Bldg., Miranda St., Sto. Rosario, Angeles City,
Pampanga
4 Antique Corner Gov. Villavert St. & Gov. Gella St., San Jose, Antique
5700
5 Bacolod - Capitol Shopping Benigno Aquino Drive, Capitol Shopping 6100 Bacolod City,
Negros Occidental
6 Bacolod - Gatuslao 26 & 28 Gov. V. Gatuslao St., Bacolod City, Negros
Occidental
7 Bacolod - Lacson Lacson corner Galo St., 6100 Bacolod City, Negros Occidental
8 Bacolod - Plaza Araneta corner Gonzaga St., 6100 Bacolod City, Negros
Occidental
9 Bacolod - Rosario Lacson Lot 296-B-7, Lacson St. corner Rosario St., Bacolod City,
Negros Occidental
10 Balanga - A. Banzon A. Banzon St., City of Balanga, 2100 Bataan
11 Baliwag – JP Rizal J.P. Rizal St., San Jose, Baliwag, Bulacan
12 Batangas - Nasugbu JP Laurel St., Barangay Poblacion, Nasugbu, Batangas
13 Batangas - Sto. Tomas Maharlika Highway, San Antonio, Sto. Tomas, Batangas

SEC FORM 17-A 27

 No. BRANCH ADDRESS
14 Batangas City - Rizal Avenue Rizal Avenue corner P. Burgos St., 4200 Batangas, Batangas
City
15 Biñan A. Bonifacio St. Barrio Canlalay, Biñan, Laguna
16 Bukidnon - Valencia M.L. Quezon St. corner G. Laviña Avenue, Valencia City,
Bukidnon 8709
17 Cabanatuan - Maharlika Road Maharlika Road, near corner Sanciangco St., Cabanatuan City
18 Cabanatuan - Maharlika South BDO Building, Maharlika Highway, Barangay Dicarma,
Cabanatuan City, Nueva Ecija
19 Cagayan - Aparri Rizal St. corner R.F Balisi St., Aparri, Cagayan
20 Cagayan de Oro - Lapasan C.M. Recto Highway, Lapasan, 9000 Cagayan de Oro City,
Misamis Oriental
21 Cagayan de Oro - Velez Velez Road corner Abejuela St., Cagayan de Oro
22 Calamba Crossing - North Calamba Crossing National Highway, 4027 Calamba, Laguna
23 Cavite - Dasmariñas Techno Governor's Drive, Brgy. Paliparan I, Dasmariñas, Cavite
Park
24 Cavite - General Trias Gateway Business Park, C. Delos Reyes Avenue, 4107 Gen.
Gateway Trias, Cavite
25 Cavite – GMA Congressional Lot 4 Block C-5-CL, Congressional Road, Brgy. Poblacion 1,
Road Gen. Mariano Alvarez (GMA) Cavite
26 Cavite - Imus Anabu Gen. Aguinaldo corner Ambrosia Road Anabu I, Imus, Cavite
27 Cavite City - P. Burgos Corner P. Burgos & P. Julio St., Caridad, 4100 Cavite City
28 Cebu - Borromeo Borromeo corner Magallanes St., Cebu City
29 Cebu - F. Gonzales F. Gonzales corner Magallanes St., Cebu City
30 Cebu - Gorordo Gorordo Avenue, Lahug 6000 Cebu City, Cebu
31 Cebu - Magallanes Plaridel Magallanes corner Plaridel St., 6000 Cebu City
32 Cebu - North Reclamation Blk. 20-A corner Port Centre Avenue & Juan Luna Avenue,
North Reclamation Area, Cebu City
33 Cebu Mandaue – M.C. Briones M.C. Briones St., National Highway Brgy. Bakilid, Mandaue
City, Cebu
34 Cotabato - Kidapawan Quezon Blvd., 9400 Kidapawan, North Cotabato
35 Cotabato - Makakua Makakua St., 9600 Cotabato City, Maguindanao
36 Dagupan - Fernandez A.B. Fernandez Avenue, 2400 Dagupan City, Pangasinan
37 Davao JP Laurel Landco-PDCP Corporate Center, JP Laurel Avenue, Bajada,
Davao City
38 Davao - Claveria BDO Building No. 30 C.M. Recto Ave., Poblacion, Davao City
39 Davao - C.M. Recto 383 Claro M. Recto St., Davao City
40 Davao - Digos Rizal Avenue, Zone II, Digos, Davao Del Sur
41 Davao - Mati Rizal corner Mabini St., 8200 Mati, Davao Oriental
42 Davao - Tagum 577 Rizal St., 8100 Tagum, Davao Del Norte
43 Davao - Toril Agton St., Toril, Davao City
44 Dipolog – Quezon Ave. Quezon Avenue, 7100 Dipolog City, Zamboanga Del Norte

SEC FORM 17-A 28

 No. BRANCH ADDRESS
45 Dumaguete – Colon Colon St. fronting Bldg. V of City Public Market, Poblacion
003, Dumaguete City
46 General Santos – Makar Hadano Avenue (Makar Wharf), Purok Bagong Silang, Brgy.
Labangal, General Santos City, South Cotabato 9500
47 General Santos - Pioneer Pioneer Avenue, General Santos City, 9500
48 General Santos – Quezon Lot 4670. Ts-217, Quezon Avenue, Brgy. Dadiangas West,
Avenue General Santos City, South Cotabato
49 General Santos - Santiago St. Ireneo Santiago Blvd., 9500 General Santos St., South
Cotabato
50 Iligan - Del Pilar BC Labao corner Del Pilar St., Iligan City
51 Iloilo - Iznart Iznart St., 5000 Iloilo City, Iloilo
52 Iloilo - Valeria Valeria St., Iloilo City
53 Isabela - Roxas 23 Osmeña Road., Bantug, Mallig Plain, 3320 Roxas, Isabela
54 Isabela - Santiago Centro BDO Bldg. City Rd. cor. Guzman St., Calao West, Santiago
City, Isabela
55 Isabela Santiago - Maharlika BDO Bldg., No. 57 Maharlika Highway cor. Quezon Ave. St.,
Highway Santiago City, Isabela
56 Koronadal - Gensan Drive NE of Gensan Drive, Zone 1, Koronadal City, South Cotabato
57 Koronadal – R. Alunan Avenue R. Alunan Avenue corner Osmeña St., 9506 Koronadal, South
Cotabato
58 La Union San Fernando – Quezon Avenue, 2500 San Fernando, La Union
Quezon Avenue
59 Laoag - Balintawak Corner Rizal & Balintawak St., 2900 Laoag City, Ilocos Norte
60 Leyte - Maasin Juan Luna St. cor. Enage St., Brgy. Tunga-tunga, Maasin,
Southern Leyte
61 Leyte - Ormoc Corner Burgos & Rizal St., 6541 Ormoc City, Leyte
62 Lipa – CM Recto 131 C. M. Recto St., 4217 Lipa City, Batangas
63 Lucena – Merchan Lot 2903 Merchan St. cor. C.M. Recto St. cor. Cabana St.,
Brgy. IV, Lucena City
64 Malolos - Congreso Paseo Del Congreso, San Agustin 3000 Malolos, Bulacan
65 Meycauayan - Zamora Zamora St., Barrio Calvario, Meycauayan, Bulacan
66 Naga - Plaza Rizal Gen. Luna St., 4400 Naga City, Camarines Sur
67 Negros Occ - Cadiz Cabahug St., 6121 Cadiz, Negros Occidental
68 Negros Occ - Escalante National Highway, Escalante City, 6124 Negros Occidental
69 Negros Occ - Kabankalan Guanzon St., Kabankalan, 6111 Negros Occidental
70 Negros Occ – Silay Figueroa corner Rizal St., Silay City, 6116 Negros Occidental
71 Nueva Ecija - Gapan Tinio St., 3105 Gapan, Nueva Ecija
72 Nueva Ecija - Guimba Afan Salvador St., 3115 Guimba, Nueva Ecija
73 Nueva Ecija - Muñoz T. delos Santos St., Science City of Munoz, Nueva Ecija
74 Ozamiz – Gallardo Cebedo St. corner Gallardo St. 50th District (Pob), Ozamiz
City, Misamis Occidental

SEC FORM 17-A 29

 No. BRANCH ADDRESS
75 Pagadian F.S. Pajares Avenue, Pagadian City, 7016 Zambonga Del Sur
76 Pampanga – Apalit MacArthur Highway, Brgy. San Vicente, Apalit, Pampanga
77 Pampanga - Guagua Lot 4876 Plaza Burgos St., Guagua, Pampanga
78 Puerto Princesa – Rizal 261 Rizal Avenue, 5300 Puerto Princesa City, Palawan
79 Quezon - Candelaria Rizal corner Valle St., Candelaria, Quezon 4323
80 Roxas - Roxas Avenue Roxas Avenue, Roxas City, Capiz
81 San Pablo - Rizal St 2F Equitable PCI Bldg., Rizal St. corner P. Alcantara, San
Pablo City, Laguna
82 Sta. Rosa - South Expressway National Road Pulong Sta. Cruz, 4026 Sta Rosa, Laguna
83 Sultan Kudarat - Isulan 075 National Highway, Kalawag 2, Isulan, Sultan Kudarat
84 Sultan Kudarat - Tacurong Alunan Highway, 9800 Tacurong, Sultan Kudarat
85 Tarlac – F. Tañedo 27 F. Tañedo St., Brgy. Poblacion, Tarlac City 2300
86 Tarlac - J. Luna J. Luna St. near corner MacArthur Highway, Brgy. Sto. Cristo,
Tarlac City
87 Tarlac - Luisita MacArthur Highway, Barangay San Miguel, Tarlac City
88 Tuguegarao - Bonifacio St. Bonifacio St., Tuguegarao, Cagayan
89 Urdaneta - Alexander Alexander St., Urdaneta City, Pangasinan
90 Vigan - Quezon Avenue Corner Bonifacio St. & Quezon Avenue, 2900 Vigan, Ilocos Sur
91 Zamboanga - Rizal St. Rizal St., Zamboanga City, 7000 Zamboanga Del Sur

D. Presented below is a list of the Bank’s real properties as of 31 December 2021 owned by
the Bank and utilized as Warehouses and Staffhouses:

No. NAME ADDRESS

1 Baguio Staffhouse Poblete Ext. South Drive, Baguio Country Club, Baguio City
2 Howmart Warehouse 63 & 65 Howmart St., Brgy. Apolonio Samson, Quezon City
3 Presidents Tower (Unit G3) Ground Floor Presidents Tower, 81 Timog Ave. corner Scout
Ybardolaza St., Brgy. South Triangle, Diliman, Quezon City
4 Taguig Warehouse Arthuro cor. Franco Drive, Sta. Maria Industrial Estate, Barrio
Bagumbayan, Taguig, Metro Manila

E. Presented below is a list of the Bank’s real properties (vacant lots and/or buildings) as of 31
December 2021 owned by the Bank reserved for future Branch or Regional use:

No. NAME ADDRESS

1 Cebu – J. Mall National Highway, 6014 Mandaue City, Cebu
2 Gercon Plaza Lot 5 & 6 Gercon Plaza along Makati Ave., Brgy. Bel Air, Makati City
3 Juan Luna Binondo J. Luna/Quintin Paredes & Hormiga Sts., Binondo, Manila

SEC FORM 17-A 30

 4 Malabon General Luna Gen. Luna St., Barangay San Agustin, Malabon City
5 Malungon Gensan Brgy. Upper Balulang, Cagayan de Oro City
6 Nuvali Sta. Rosa Lot 6 Block 9, Nuvali, Sta. Rosa, Laguna
7 Premises Management 411 Quintin Paredes St., Binondo, Manila
Division (Binondo)
8 Premises Management Fuente Osmena Rotonda, Cebu City
Division (Cebu Fuente - Circle)
9 Premises Management CM Recto Avenue, Lipa City
Division (Lipa - Rotonda)
10 Property Leasing Dept. 110 MacArthur Highway corner Riverside St. Potrero Malabon
(Potrero)
11 PSE Tower One Bonifacio High Street, 28th Street corner 5th Avenue, Bonifacio
Global City, Taguig
12 RBSJ Tarlac Building Lot 3-H & 3-I-2 Sto. Cristo, J.P. Rizal Extension, Tarlac City
(Monarch)

(2) Leased Properties

BDO Unibank Group leases the premises of its head office and most of its branch
offices for periods ranging from one to 30 years from the date of the contracts; terms
are renewable upon the mutual agreement of the parties.

Lease liabilities amounting to P12,087 and P11,701 as at December 31, 2021

and December 31, 2020, respectively, for the BDO Unibank Group and P11,800 and
P11,551, as of December 31, 2021 and December 31, 2020, respectively, for the
Parent Bank.

A list of these leased properties is as follows:

(a) Utilized as Head Offices as of 31 December 2021:

No. NAME ADDRESS

1 Customer Contact Center – 8th - 9th Floors Tower 1 Double Dragon Plaza, Meridian Park, Macapagal cor. Edsa
Meridian Park Extn, Pasay City
2 Customer Contact Center – SM 12th floor SM North Tower 1 Edsa cor. North Ave. Quezon City
North Tower
3 The Podium West Tower 37th-41st SMKL, The Podium West Tower, 12 ADB Avenue corner Julia Vargas,
Ortigas Center Mandaluyong City

(b) Utilized as Representative Offices located abroad as of 31 December 2021:

No. NAME ADDRESS

1 Dubai Representative Office Ground Floor, DUTCO House Building 44 AI Ittihad Road Diera, Dubai

SEC FORM 17-A 31

 No. NAME ADDRESS
2 Korea Representative Office 23rd Floor Seoul Finance Center, 136 Sejongdaero Jung-gu, Seoul 100-768 Korea
3 Taipei Representative Office Hung Kuo Building 7F-A-167 Tun Hua North Road, Song Shan District, Taipei,
Taiwan
4 Xiamen Representative Office Unit 244-246, SM City Mall No.468- Jiahe Road, Xiamen No.1351 Xianyue Rd.

(c) Utilized leased lot as ATM offsite location as of 31 December 2021:

No. NAME ADDRESS

1 Clark Philexcel Philexcel Business Park, M.A. Roxas Highway, ClarkFreeport Zone, Pampanga
2 Ebanking Center 3rd Level Tower 1, The Enterprise Center, 6766 Ayala Avenue Makati City

(d) Utilized as Regional Offices as of 31 December 2021:

No. NAME ADDRESS

1 Cash Hub - Baguio 4th Floor, National Life Bldg., Session Road Baguio City
2 Cash Hub – FCIE Governor's Drive, Brgy. Langkaan, Dasmariñas, Cavite
3 CBG Office – Batangas P. Burgos PBC Building, Brgy. 13 P. Burgos St. Batangas City
4 CBG Office – Cebu Ayala Business 9th floor, Unit 905 FLB Corporate Center, Bohol Avenue and Archbishop Reyes
Park Avenue, Cebu Business Park, Barangay Luz Cebu City

5 CBG Office – Cebu Sky Tower 9th Floor, Skytower Building, #88 Acasia St., Brgy. Kamputhaw, Cebu City, Cebu,
Philippines

6 CBG Office – Crosstown Mall Sta. Crosstown Mall, Purok 4, Sta. Rosa Tagaytay Road, Pulong Sta. Cruz City, Sta.
Rosa Rosa, Laguna

7 CBG Office - Dagupan 3F & 4F Rudel Building, Perez Blvd. Cor. Guilig St, Dagupan City
8 CBG Office – Laoag Ilocos Norte G/F Insular Life Bldg, Balintawak St. Laoag City Ilocos Norte
9 CBG Office - Legaspi Albay 2/F City Enterprise Building Landco Business Park F. Imperial St., Bgy. Capantawan,
Legazpi City, Albay
10 CBG Office – Malolos Bulacan 2F of a Commercial Building, Mabini Street, Brgy. Guinhawa, Malolos City, Bulacan
11 CBG Office - SM Cebu Unit 282, 2F SM City Consolacion, National Road, Brgy. Lamac, Consolacion, Cebu
Consolacion City
12 CBG Office – SM City Iloilo LG/F SM City Iloilo, Benigno Aquino Avenue, Barangay Boliao, Mandurriao, Iloilo City
13 CBG Office - SM North Tower 10th & 11th Floor, SM North Tower 1, EDSA cor North Ave., Quezon City
14 CBG Office – SM Olongapo 410B-410D, 4F, SM City Olongapo Magsaysay Drive cor. Gordon Ave. Brgy Pag-
Asa, Olongapo City
15 CBG Office - Tuguegarao 2F Sychangco Bldg. Bonifacio Street, Tuguegarao City Cagayan
16 CBG Office – Waltermart Calamba 2nd Floor Waltermart Makiling, Brgy. Makiling National Highway Calamba Laguna

SEC FORM 17-A 32

 (e) Metro Manila Branches

1. Lot leased

No. BRANCH ADDRESS

1 Better Living Doña Soledad Avenue corner France St., Better Living, Parañaque
City
2 BF Homes Aguirre – P. Corpuz L1 B5 A. Aguirre Ave. corner Pio V. Corpuz St., Brgy. BF Homes,
Parañaque City
3 Commonwealth Ave. - Holy Spirit Lot 27 Commonwealth Avenue, Brgy. Holy Spirit, Quezon City
4 Congressional - Mindanao Avenue Congressional Avenue Extension corner Mindanao Avenue, Quezon
City
5 Isidora Hills BDO Bldg., Pook Ligaya Riding Ground, Interneighborhood Road,
Isidora Hills Subdivision, Barangay Holy Spirit, Quezon City
6 Las Piñas - BF Resort BDO Bldg., Blk 4 Lot 9 BF Resort Drive Phase 4, BF Resort Village,
Las Piñas
7 Makati - J.P. Rizal 872 JP Rizal St. Barangay Poblacion, Makati City
8 Makati - P. Ocampo Sr.Ext. 243 P. Ocampo Sr. corner Flor de Lis St., Brgy La Paz, Makati City
9 Marikina - Tañong 223 A. Bonifacio Avenue, Brgy. Tañong, Marikina City
10 Mayon 166 Mayon St., Brgy. Maharlika, Sta. Mesa Heights, Quezon City
11 Mayon – Simoun 116 Mayon St., Sta. Mesa Heights, Brgy. Lourdes, Quezon City
12 Novaliches 1016 Quirino Highway Town Proper, Barangay Monica, Novaliches,
Quezon City
13 Novaliches - Lagro Lot 2-B-6 (LRC) PSD-341349, Quirino Highway, Lagro, Novaliches,
Quezon City
14 Lot 921-B-1-B, Paso De Blas Road, Brgy. Paso De Blas, Valenzuela
Paso De Blas - North Expressway
City
15 Quezon City – Kalayaan Avenue 108 Kalayaan Avenue, Brgy. Central, Central, Quezon City

16 Visayas Avenue - Project 6 57 Visayas Avenue (Near Sanville Subdivision), Quezon City

2. Building leased

No. BRANCH ADDRESS

1 6780 Ayala Avenue G/F 6780 Ayala Avenue Bldg., 6780 Ayala Avenue, Brgy. San
Lorenzo, Makati City
2 A Place - Coral Way G/F A Place, Coral Way Drive, MOA Complex, Central Business
Park 1, Island A, Pasay City
3 A. Arnaiz - Paseo G/F Joni's Bldg., 832 Arnaiz Ave. cor. Edades St., Brgy. San
Lorenzo, Makati City

SEC FORM 17-A 33

 No. BRANCH ADDRESS

4 A. Arnaiz - San Lorenzo Village L & R Bldg., 1018 A. Arnaiz Avenue, Makati City

5 A. Bonifacio Ave. - Cloverleaf 2/F, Ayala Malls Cloverleaf, A. Bonifacio Avenue, Brgy. Balingasa,
Quezon City
6 A. Mabini – Gen. Malvar Unit R1 G/F, Hollywood Garden Square Bldg., 1709 A. Mabini St.
corner Gen. Malvar St. Brgy. 699, Zone 076, Malate, Manila

7 ABS CBN - Mother Ignacia St. Stall No. 22, East Wing, G/F ELJCC Bldg., Sgt. E.A. Esguerra
Avenue corner Mother Ignacia St., Brgy. South Triangle, Quezon
City
8 Acropolis - E. Rodriguez Jr. G/F The SPA Bldg., E. Rodriguez Jr. Ave., Bagumbayan, Quezon
City
9 Adriatico – Sta. Monica 1347 Adriatico near cor. Sta. Monica across Robinson's Place
Manila, Brgy. 669, Ermita, Manila
10 Alabang Hills Unit G02 UGF Madison Galleries, No. 398 Don Jesus Blvd., Brgy.
Cupang, Alabang Hills, Muntinlupa City
11 Alabang – Finance Street Unit 3 & 4, Paz Madrigal Plaza, Alabang Zapote Road, corner
Finance Street, Barangay Ayala Alabang, Madrigal Business Park,
Ayala Alabang, Muntinlupa City
12 Alabang - Madrigal Avenue Molito 2 Bldg., Units 1, 2 & 3, Alabang-Zapote Road corner Madrigal
Avenue, Alabang, Muntinlupa City
13 Anonas - Kamias Anonas St. corner K-6 St., East Kamias, 1102 Quezon City
14 Araneta Center – Ali Mall II Level 2, #s A202019-202020R, Ali Mall II, P. Tuazon Avenue,
Araneta Center, Brgy. Socorro, Cubao, Quezon City
15 Araneta Center – Gateway Mall 00016 Gateway Mall, Gen. Malvar Avenue, Brgy. Socorro, Cubao,
Quezon City
16 Arranque 1359-1361 Soler St., Sta. Cruz, Manila
17 Arranque - Severino Reyes 1451-1457 C.M. Recto corner Severino Reyes St., Sta. Cruz, Manila

18 Aseana – Monarch Parksuites Space 118 Monarch Parksuites, Bradco Avenue, Aseana Business
Park, Brgy. Baclaran, Parañaque City
19 Aurora Blvd. - Anonas Manahan Bldg., Aurora Blvd. corner Anonas Avenue, Quezon City
20 Aurora Blvd. - Hemady 708 Aurora Blvd. corner Hemady St., New Manila, 1110 Quezon City
21 Aurora Blvd. - New Manila 669 Aurora Blvd. Broadway Heights Bldg., Brgy. Mariana, New
Manila, Quezon City
22 Aurora Blvd. - Princeton SMDC Princeton Residences (LC 102a-103d), Aurora Blvd., Brgy.
Residences Valencia, Quezon City
23 Ayala Alabang G/F Condominium C Unioil Center Bldg. Acacia Avenue corner
Commerce Avenue, Ayala Alabang, Muntinlupa
24 Ayala Alabang - Richville Center Richville Center, 1314 Commerce Avenue Extension, Madrigal
Business Park, Ayala Alabang, Muntinlipa
25 Ayala Avenue 6805 Multinational Bancorporation Bldg., Ayala, Makati City

SEC FORM 17-A 34

 No. BRANCH ADDRESS

26 Ayala Avenue - People Support G/F People Support Center Amorsolo St. corner Ayala Avenue,
Makati City
27 Ayala Avenue - SGV 1 Bldg. G/F SGV 1 Building, 6760 Ayala Avenue, Makati City

28 Ayala Avenue Extension – Unit G10-G11, The Shops at Alphaland Makati Place, 7232 Ayala
Alphaland Makati Place Avenue Ext. cor., Malugay St., Brgy. Bel-Air, Makati City
29 Ayala Triangle 1 GM-B G/F Tower 1, Ayala Triangle, Ayala Avenue, Makati City
30 Ayala - Rufino G/F Rufino Bldg., Ayala Avenue corner Herrera St., 1226 Makati
City
31 Baclaran 2987 Taft Avenue Extension, Pasay City
32 Balubaran – MacArthur Highway G/F Bldg. 1, Arca Strip Commercial Center, 32 MacArthur Highway,
Brgy. Dalandanan, Valenzuela City 1443
33 Banawe - Agno 202-204 Banawe corner Agno St., 1103 Quezon City
34 Banawe - Amoranto 650 N. S. Amoranto Avenue corner Banawe St., Quezon City
35 Banawe - Kitanlad 23-25 Banawe corner Kitanlad, Quezon City

36 Banawe - N. Roxas 71 Nicanor Roxas St. corner Banawe St., Quezon City
37 BDO Corporate Center Ortigas G/F The Podium, ADB Avenue, Brgy. Wack-Wack, Mandaluyong
City
38 Bel-Air – SM Cyberzone 1 G/F SM Makati Cyberzone 1, along Sen. Gil Puyat Avenue, Makati
City
39 Better Living - Bicutan 43 Doña Soledad Avenue, Better Living Subdivision, Don Bosco,
Parañaque, MM
40 BF Homes - Aguirre RGM Bldg., 326 Aguirre Avenue, BF Homes, Parañaque
41 BF Homes - Puregold Southpark Units 4 & 5, G/F Puregold Avelino, President’s Avenue, BF Homes,
Parañaque City
42 BF Homes – Teoville G/F Aurora Comm Bldg., President's Ave., Teoville Subd., Brgy. BF
Homes, Paranaque City
43 BGC – Crescent Park West Arthaland & Century Pacific Tower, 30th St. corner 4th Avenue,
Crescent Park West, Brgy. Fort Bonifacio, Bonifacio Global City,
Taguig
44 BGC – Net Park Net Park, 4th Avenue, Brgy. Fort Bonifacio, Bonifacio Global City,
Taguig City
45 BGC – One Park Drive G/F Retail Unit Nos. 1 & 2, One Park Drive, 9th Avenue cor 11th
Drive, Brgy. Fort Bonifacio, Bonifacio Global City, Taguig City
46 Bicutan – East Service Road Prime Corporate Center, Km. 15 East Service Road corner Marian
Road 2, Brgy. San Martin de Porres, Parañaque City
47 Bicutan – Sun Valley RA024-RA026, Aria A Amaia Steps Bicutan, Sun Valley Drive, Brgy.
Sun Valley, Parañaque City
48 Bicutan - West Service Road HRDC Bldg., KM. 16 South Super Highway cor. Acsie Road,
Severina Industrial Estate, Brgy. Marcelo Green, Parañaque

SEC FORM 17-A 35

 No. BRANCH ADDRESS

49 Binondo Lot 34 and 35, Blk. 2012, Quintin Paredes St., Brgy. 289, Zone 27,
Binondo, Manila
50 Binondo – Rosario 483 – 485 G/F Quintin Paredes St., Binondo, Manila

51 Binondo – San Fernando Units 1-6, G/F, 500 San Fernando St., San Nicolas, 026, Brgy.282,
Manila
52 Bocobo - Pedro Gil G/F, Altra Center, 1663 Bocobo St., Brgy 698, Malate, Manila
53 Boni – Dansalan G/F Exbonytz, Inc. Bldg., Boni Avenue corner M. Vicente St.
(formerly Dansalan St), Mandaluyong City
54 Boni - Ligaya 654 Boni Avenue, 1550 Mandaluyong City
55 BGC - 9th Avenue Active Fun Bldg., 9th Avenue corner 28th St., Brgy. Fort Bonifacio,
Bonifacio Global City, Taguig City
56 BGC - Burgos Circle Unit 1-F & 1-E G/F, Crescent Park Residences, 2nd Avenue corner
Burgos Circle, Bonifacio Global City, Taguig City
57 BGC - Ecotower G/F Ecotower, 32nd St. corner 9th Avenue, Bonifacio Global City,
Taguig City
58 BGC - Fort Legends G/F Fort Legends Tower, corner 31st St. & 3rd Avenue, Bonifacio
Global City, Taguig City
59 BGC - Grand Hamptons Tower Grand Hamptons Tower, 1st Avenue corner 31st St., Bonifacio
Global City, Taguig City
60 BGC - Inoza Tower G/F, Inoza Tower, 39th Street, Bonifacio North Triangle, Brgy. Fort
Bonifacio, Bonifacio Global City, Taguig City
61 BGC - J.Y. Campos Center G/F J.Y. Campos Center, 30th St. corner 9th Avenue, Bonifacio
Global City, Taguig City

62 BGC - Market Market Space No. 101, Market Market, Bonifacio Global City, Fort Bonifacio,
Taguig, MM
63 BGC - MC Home Depot G/F MC Home Depot, 32nd St. corner Bonifacio Avenue, Bonifacio
Global City, Taguig
64 BGC - One Mckinley Place G/F One McKinley Place, 4th Avenue corner 25th St., Bonifacio
Global City, Taguig
65 BGC - Phil. Stock Exchange 5/F One Bonifacio High Street Bldg., 28th St. corner 5th Avenue,
Brgy. Fort Bonifacio, Bonifacio Global City, Taguig City
66 BGC - Picadilly Star G/F Picadilly Star Corporate Center, 4th Avenue corner 27th St.,
Bonifacio Global City, Taguig
67 BGC – Shangri-La The Fort Unit GF 22, G/F Shangri-La at the Fort Manila, 30th St. cor. 5th Ave.,
Brgy. Fort Bonifacio, Bonifacio Global City, Taguig
68 BGC - St. Luke's St. Luke's Medical Center, Rizal Drive corner 5th Avenue & 32nd St.,
Fort Bonifacio Global City, Taguig
69 BGC - The Infinity Tower Unit 103 The Infinity Tower, 26th St., Brgy. Fort Bonifacio, Bonifacio
Global City, Taguig
70 BGC - University Parkway G/F Avecshares Center, 1132 University Parkway, Bonifacio North
Triangle, Bonifacio Global City, Taguig

SEC FORM 17-A 36

 No. BRANCH ADDRESS

71 BGC - World Plaza G/F, Unit 6, World Plaza, 4th Avenue, Brgy. Fort Bonifacio, Bonifacio
Global City, Taguig City
72 Bonny Serrano Avenue Unit 11 & 12, Aguinaldo Corporate Centre 125 Col. Bonny S.
Serrano Avenue Brgy. Socorro, Quezon City
73 Buendia - Taft 401 Sen. Gil Puyat Ave. cor. Dominga St., Brgy. 48, Pasay City
74 C. M. Recto - Reina Regente 1059 CM Recto Avenue corner Reina Regente St., Binondo, Manila
75 Cainta – Sumulong Highway Along Sumulong Highway, Brgy. Balanti, Cainta, Rizal

76 Calle Industria – Circulo Verde G/F Unit I-102, Industria, Circulo Verde, No. 70 Calle Industria, Brgy.
Bagumbayan, Quezon City
77 Caloocan Rizal Avenue Extension near corner 11th Avenue, Grace Park,
Caloocan City
78 Caloocan - A. Mabini G/F Corazon Bldg., 432 A. Mabini St., Poblacion, Caloocan City
79 Caloocan – Maypajo G/F , Units 1-3, 237 A. Mabini St., Brgy. 26, Zone 3, District II,
Caloocan City
80 Caloocan – Primark Deparo Primark Town Center Gilmar’s Place Subd, BF Homes, Brgy. 168,
Deparo, Caloocan City
81 Caloocan 7th Ave. Rizal Avenue Extension corner 7th Avenue, Caloocan City
82 Carmen Planas Nos. 822, 824 & 826 Carmen Planas St., Brgy. 269, Zone 25, District
3, Manila
83 Carmen Planas - P. Rada 1033-1035 C. Planas St., 1012 Tondo, Manila

84 Carmen Planas - Zaragosa 921 Carmen Planas St. corner Zaragosa St., Tondo, Manila

85 Cash & Carry G/F Unit No. G01A, Cash & Carry Mall, South Super Highway &
Filmore St., Makati City
86 Central Market - V. Fugoso 1724 V. Fugoso St., Brgy. 311 Zone 31, District, 3 Sta. Cruz, Manila
87 Chino Roces Avenue Units 3 & 4 La Fuerza Plaza, Chino Roces Avenue, Makati City
88 Chino Roces Avenue – Dela Rosa Unit 101 & 102, G/F, One Oculus Center, 2120 Chino Roces
Avenue, Makati City
89 Chino Roces Avenue – V.A. Rufino G/F Pacifica One Center, 2178 Don Chino Roces Avenue, Brgy. Pio
Del Pilar (North Arnaiz), Makati City
90 Chino Roces Extension – Lumbang G/F Dacon Bldg., 2281 Chino Roces Ave., Ext., Brgy. Magallanes,
Makati City
91 City of Dreams Manila 2nd Level, City of Dreams Manila, Aseana cor. Roxas Blvd., Brgy.
Tambo, Parañaque City
92 Commonwealth G/F Teresita Bldg., Holy Spirit Drive, Don Antonio Heights, Quezon
City
93 Commonwealth - Don Antonio Don Antonio Sports Center, Don Antonio (former Holy Spirit Drive),
Don Antonio Heights Subdivision, Quezon City
94 Commonwealth – Ever Gotesco Ever-Gotesco Commonwealth Center, Don Mariano Marcos Avenue
corner Don Antonio Road, Brgy. Batasan Hills, Quezon City

SEC FORM 17-A 37

 No. BRANCH ADDRESS

95 Commonwealth – Shopwise Units A3 and A4, G/F, Shopwise Commonwealth, Commonwealth

Avenue, Brgy. Holy Spirit, Quezon City
96 Congressional Ave. Ext. – T.M. Blk. 3 Lot 6 Mira Nila Homes, Congressional Ave. Ext., Brgy. Pasong
Kalaw Tamo, Quezon City
97 Congressional Avenue The Excelland System I, Congressional Avenue, Quezon City

98 Congressional Avenue – Project 8 149 Congressional Ave., Brgy. Bahay Toro, Project 8, Quezon City
99 Cubao - P. Tuazon MEC Tower, P. Tuazon Ave. cor. 21st St., Cubao, Quezon City
100 Dapitan St. - A. H. Lacson Ave. Dioresa Plaza, Dapitan St. corner A.H. Lacson Avenue, Sampaloc,
Manila
101 Del Monte Avenue 63 Del Monte Avenue, Brgy. Manresa, Quezon City
102 Del Monte - Araneta Avenue 641 Del Monte Avenue, San Francisco Del Monte, Quezon City
103 Del Monte - Sienna 409 Del Monte Avenue, Quezon City 1105

104 Dela Rosa - Gallardo G/F Unit 15 Tropical Palms Condominium, 103 Dela Rosa St. cor.
Gallardo St. cor. Perea St., Brgy. San Lorenzo, Legaspi Village,
Makati City
105 Dela Rosa - Rada Ace Bldg., corner Dela Rosa & Rada St., Legaspi Village, 1229
Makati City
106 Diliman - Capitol Hills 16 Capitol Hills Drive, Old Balara, Diliman, Quezon City

107 Diliman - Matalino G/F Suntrust Capitol Plaza, Matalino St. cor. City Hall Drive cor.
Makatarungan St., Brgy. Central, Diliman, Quezon City
108 Divisoria – Juan Luna 744 - 746 Ilaya St., San Nicolas 025, Brgy. 268, Tondo, Manila
109 Divisoria - Sta. Elena 668 Sta. Elena St., Binondo, Manila

110 Dr. A. Santos Ave. LT Bldg., Dr. A. Santos Avenue, Paranaque City

111 Dr. A. Santos Avenue – Amaia Units R108-R112, Amaia Steps Sucat, Dr. A. Santos Ave., Brgy. San
Steps Antonio, Parañaque City
112 Dr. A. Santos Avenue – Puregold Commercial Units No. 8-10, Puregold San Dionisio, Dr. A. Santos
Evacom Avenue, Brgy. San Dionisio, Parañaque City
113 Dr. A. Santos Avenue – UPS 5 GF Omniworx Business Center, 0060 Dr. A. Santos Avenue, Brgy.
San Isidro, Parañaque City
114 E. Rodriguez - Welcome Rotonda G/F AEK Bldg., 40 E. Rodriguez Sr. Avenue, Don Manuel, Quezon
City
115 E. Rodriguez Jr. Ave. - Shop 2-6 Tera Tower at Bridgetowne, E. Rodriguez Jr. Ave., Libis,
Bridgetowne Quezon City
116 E. Rodriguez Sr. - Hillcrest G/F Rhodium Square Bldg., 1659 E. Rodriguez Sr. Avenue, Brgy.
Pinagkaisahan, Quezon City
117 Eastwood City - E. Rodriguez Jr. Magnitude Commercial Arcade, E. Rodriguez Jr. Avenue,
Avenue Bagumbayan, Quezon City

SEC FORM 17-A 38

 No. BRANCH ADDRESS

118 Eastwood City - IBM Plaza G/F IBM Plaza, Eastwood City, E. Rodriguez Jr., Avenue,
Bagumbayan, Quezon City
119 Eastwood City - Olympic Heights G/F Olympic Heights, Eastwood City Cyberpark, Bagumbayan,
Quezon City
120 Echague 116-120 C. Palanca St. Quiapo, Manila
121 EDSA – Boni Avenue LG/F, Phinma Properties Center, 29 EDSA, Brgy. Barangka Ilaya,
Mandaluyong City 1500
122 EDSA Cubao 596 Simeon Medalla Bldg., corner Gen. McArthur Avenue, EDSA,
Quezon City
123 EDSA East - Caloocan L & E Bldg. EDSA corner Gen. Concepcion St, Caloocan City

124 EDSA POEA POEA Bldg., EDSA corner Ortigas Avenue, Mandaluyong City
125 EDSA - A. De Jesus 474 EDSA corner B. Serrano & A. De Jesus St, 1403 Caloocan City

126 EDSA - Balintawak G/F, 1310 EDSA, Brgy Apolonio Samson, Balintawak, Quezon City
127 EDSA - Bangkal EDSA, Brgy. Bangkal, Makati City
128 EDSA - East Avenue G/F Macdouton Building, 768 Edsa near cor. East Avenue, Brgy.
Pinyahan, Cubao, Quezon City
129 EDSA - Eton Centris Retail B, Cyberpod Centris Three, Eton Centris, EDSA corner
Quezon Ave., Brgy. Pinyahan, Quezon City
130 EDSA – Kalayaan Avenue G/F Palmyra Bldg., Kalayaan Avenue corner EDSA, Brgy.
Pinagkaisahan, Makati City
131 EDSA - New Farmers Plaza Unit FPGF038R & FPGF054R, G/F New Farmers Plaza, General
Roxas Avenue, Araneta City, Brgy. Socorro, Cubao, Quezon City
132 EDSA – New York EDSA corner New York St., Cubao, 1111 Quezon City

133 EDSA – Ortigas Maranaw Plaza, 187 Edsa, Brgy. Wack-Wack, Greenhills East,
Mandaluyong City
134 EDSA – Panorama Technocenter G-02 Panorama Technocenter, 1029 EDSA, Brgy Veterans Village I,
Muñoz, Quezon City
135 EDSA - Pasay 507 EDSA corner B. Garcia St., 1300 Pasay City
136 EDSA – Skysuites Towers 927 The Skysuites Towers, Quezon Ave. cor. EDSA, Brgy. West
Triangle, District 1, Quezon City
137 Elcano SHC Tower 619 Elcano St., San Nicolas, Manila

138 Emerald Avenue G/F Unit 101 Taipan Place, Don Francisco Ortigas Jr. Road, Pasig

139 Escolta 303 Escolta St., Brgy. 291, Binondo, Manila

140 España Carmen Bldg. Espana corner G. Tolentino St. Sampaloc, Manila

141 España – Basilio España St. corner Basilio St. corner Instruccion St., Brgy. 512,
Manila

SEC FORM 17-A 39

 No. BRANCH ADDRESS

142 España – Blumentritt 2101-2103 España Avenue corner Blumentritt St. 1008 Sampaloc,
Manila
143 España – Grand Residences 2 C1-C2, Grand Residences España Tower 2, 958 A.H. Lacson St.,
Brgy. 479, Zone 47, Sampaloc, Manila
144 España - M. Dela Fuente Esperanza Place, España Blvd. corner M. Dela Fuente St.,
Sampaloc, Manila
145 Evangelista - Makati 1695 Evangelista St corner Gen. Lacuna St., Bangkal, Makati City
1233
146 F. Ortigas Jr. Road G/F Ortigas Center Association, Inc. Bldg., F. Ortigas Jr. Road, Brgy.
Oranbo, Ortigas Center, Pasig City
147 Fairview – Ayala Terraces UG/F Space No. U066, Ayala Fairview Terraces, Quirino Highway
corner Maligaya Drive, Brgy. Pasong Putik, Novaliches, Quezon City
148 Fairview - Brittany Square GF IL 103, Brittany Square, Belfast St. corner Mindanao Avenue
Extension, Brgy. Pasong Putik, Fairview, Quezon City
149 Fairview – Doña Carmen Shopking Doña Carmen Commercial Center, Commonwealth
Avenue, Brgy. North Fairview, Quezon City
150 Fairview – Fairmont Regalado Avenue, Brgy. North Fairview, Novaliches, Quezon City.

151 Fairview – Peacock Plaza Peacock Plaza, Lot 1 Bkl 2, Commonwealth Ave. cor. Peacock St.,
Brgy. Fairview Park, Quezon City
152 Fairview – Regalado G/F Regalado Hive, Regalado Ave., Brgy Fairview, Quezon City

153 Filinvest Avenue G/F BC Group Bldg., Filinvest Ave. corner Commerce Ave., Brgy.
Ayala Alabang, Filinvest Corporate City, Alabang, Muntinlupa
154 Filinvest - Alabang G/F Tower 1, Insular Life Corporate Center, Insular Life Drive,
Filinvest Corporate City, Alabang, Muntinlupa City
155 Filinvest – Civic Drive Units 7 & 8, AA Corporate Plaza, Civic Drive, Filinvest Corporate
City, Brgy. Alabang, Muntinlupa City
156 Filinvest – Northgate Aeon Center Space 2, Aeon Center, Alabang Zapote Road corner North
Bridgeway, Filinvest Corporate City, Brgy. Alabang, Muntinlupa City
157 Filinvest – Spectrum Midway Space 3 & 4, Polaris Bldg., Spectrum Midway St., Filinvest
Corporate City, Brgy. Alabang, Muntinlupa City
158 FiveE-comCenter G/F FiveE-com Center, Pacific Drive cor. Bayshore Ave., Brgy. 76,
Zone 10, Mall of Asia Complex, Pasay City
159 Fort Bonifacio - Bayani Road Bayani Road corner M. Roxas St., Fort Bonifacio, Taguig
160 Fort Bonifacio - Mckinley Hill G/F Three World Square, McKinley Hill, Fort Bonifacio, Taguig

161 Fort Bonifacio – McKinley West LG/F Shops 3-5, Cyber Sigma, Lawton Avenue, McKinley West,
Brgy. Fort Bonifacio, Taguig City
162 G. Araneta - Brixton Hill G/F ILO Bldg., 195 G. Araneta Avenue, Quezon City

163 Gandara 811-813 Sabino Padilla St. (formerly Gandara St.) Sta. Cruz ,
Manila
164 Gandara - Soler 1268 Soler St. corner S. Padilla St., 1006 Binondo, Manila

SEC FORM 17-A 40

 No. BRANCH ADDRESS

165 GC Corporate Plaza - Legaspi St. 150 GC Corporate Plaza, Legaspi St., Legaspi Village, Makati City

166 General Luis 297 Gen. Luis St., Barrio Kaybiga, Caloocan City

167 Gil Puyat - Filmore 1320 Filmore St., Brgy. Palanan, Makati City
168 Gil Puyat - Harrison Unit IC, ID & IE, No. 53 Gil Puyat Avenue, Brgy. San Rafael, Pasay
City
169 Gil Puyat - Metro House Metro House Building, 345 Sen. Gil J. Puyat Avenue, Brgy. Bel-Air,
Makati City
170 Gil Puyat - Taft 336-338 Gil Puyat Avenue, Brgy. 49, Pasay City

171 Gil Puyat – TechZone G/F TechZone Philippines Bldg., 213 Sen. Gil Puyat Ave., Brgy. San
Antonio , Makati City
172 Grace Park G/F A & R Bldg., 213 Rizal Avenue Extension, Grace Park,
Caloocan City
173 Grace Park - 11th Avenue 1619 Rizal Avenue, Extension corner 11th Avenue, 1400 Caloocan
City
174 Grass Residences Unit 101-102B, The Strip at Grass Residences, Misamis St. corner
Nueva Ecija and Nueva Vizcaya Sts., Sto. Cristo 3, Quezon City
175 Greenbelt – Legazpi St. G/F 108 Legazpi St. corner Paseo de Roxas, Pioneer House Bldg.,
Legazpi Village, Makati City
176 Greenhills Shopping Center G/F Jeweller Center, Greenhills Shopping Center, Ortigas Avenue,
San Juan, Metro Manila
177 Greenhills - Annapolis Unit 101, G/F Vasquez-Madrigal Plaza, Annapolis, Greenhills, San
Juan
178 Greenhills - Connecticut G/F Belomed Bldg., No. 49 Connecticut St., Brgy. Greenhills, San
Juan City
179 Greenhills - O Square G/F Unit OS-105, O Square Greenhills Shopping Center, Ortigas
Avenue, Brgy. Greenhills, San Juan City
180 Greenhills - West 101 Limketkai Bldg., Ortigas Avenue, San Juan, MM

181 Greenhills - Wilson 227 Wilson St. corner Don Miguel St., San Juan, MM
182 H.V. Dela Costa 120 Westgate Plaza Condominium, Salcedo Village, Makati City
183 Ilaya 1049-1051 Ilaya St., Divisoria, Manila

184 Ilaya - Padre Herrera 1089 Ilaya St., Brgy.3, Zone 01, Tondo, Manila
185 Intramuros G/F Chamber of Commerce Bldg., #3 Magallanes Drive, Intramuros,
Manila
186 J. Abad Santos G/F Ching Leong Temple, J. Abad Santos Avenue, Tondo, Manila
187 JAS – Antipolo G/F Intercast Corporate Tower 2230 J. Abad Santos Avenue, Tondo,
Manila
188 JAS – Padre Algue G/F, Unit C-4, Cintiley Residences, 1278 J. Abad Santos Ave., Brgy.
259, Zone 023, Tondo, Manila

SEC FORM 17-A 41

 No. BRANCH ADDRESS

189 Juan Luna 262 Juan Luna Street, Binondo, Manila

190 Julia Vargas – IBP Tower G/F IBP Tower, Doña Julia Vargas Avenue and Jade Drive, Ortigas
Center, Brgy. San Antonio, Pasig City
191 Julia Vargas – Ortigas Technopoint Unit Nos. G04-07, OTP Bldg. 1, No. 01, Julia Vargas Avenue,
One Ugong, Pasig City
192 Julia Vargas – Valle Verde Units L1-01 & L1-02, Silver City, Frontera Verde, Brgy Ugong, Pasig
City
193 Jupiter - Reposo G/F CEI Headquarters, 158 Jupiter St. corner N. Garcia St., Bel-Air
Village, Makati City
194 Kamagong 2567 P. Ocampo (Vito Cruz Extension ) corner Madre Perla St.
Manila
195 Kamias Road Trinidad Bldg., Kamias Road corner K- J St., Quezon City

196 Karrivin Plaza - Chino Roces G/F Building A, Karrivin Plaza, 2316 Chino Roces Avenue
Avenue Ext. Extension, Makati City
197 Karuhatan - MacArthur Highway KM. 13 MacArthur Highway, 1441 Karuhatan, Valenzuela, Metro
Manila
198 Katipunan Regis Center, No. 327 Katipunan Avenue corner F. Dela Rosa St.,
Loyola Heights, Quezon City
199 Katipunan – Blue Ridge G/F, Place One Building, 205 Katipunan Avenue, Brgy. Milagrosa,
Quezon City
200 Katipunan – Loyola Heights De Borja Commercial Bldg., 299 Katipunan Avenue, Brgy. Loyola
Heights, Quezon City
201 Katipunan – Xavierville G/F Xavierville Square Condominium, 38 Xavierville Avenue, Loyola
Heights, Quezon City
202 Katipunan Avenue – Blue Strip at Blue, Blue Residences (LC 104-107A), Katipunan Ave.
Residences corner Aurora Blvd., Brgy. Loyola Heights, Quezon City
203 Katipunan Avenue – U.P. Town Second Level, Phase 2, Space No. 278a, Ayala Malls U.P. Town
Center Center, Katipunan Avenue, Brgy. U.P. Campus, Quezon City
204 Las Piñas - Almanza Alabang-Zapote Road, Almanza Uno, Las Piñas, Metro Manila

205 Las Piñas - Evia Daang Hari Evia Lifestyle Center, Daang Hari Road, Tindig na Mangga, Brgy.
Almanza Dos, Las Piñas City
206 Las Piñas - J. Aguilar Avenue Blk. 1 Lot 9 J. Aguilar Avenue, Casimiro Village 3, Brgy. BF
Casimiro International, Las Piñas City
207 Las Piñas - Marcos Alvarez B-2 L-19 Kimberkay Bldg., Marcos Alvarez Ave., Brgy. Talon Cinco,
Avenue Las Piñas City
208 Las Piñas - Naga Road Near corner Naga Road and Main Access Road, E.T. Homes 2,
Pulanglupa 2, Las Piñas City
209 Las Piñas - Pamplona Tres Unit 101-104, G/F, Lot G & H, Torre Sur, Alabang Zapote, Brgy.
Pamplona Tres, Las Piñas City
210 Las Piñas - Talon G/F Motiontrade Bldg, Alabang-Zapote Road, Talon, Las Piñas City

SEC FORM 17-A 42

 No. BRANCH ADDRESS

211 Lavezares 321-325 Garden City Condominium, corner Lavezares & Camba St.,
San Nicolas, Manila
212 Legaspi Village - C. Palanca G/F Colonade Residences, No. 132 Legaspi Village, Makati City
213 Legaspi Village - Gamboa KL Tower, 117 Gamboa Street, Legaspi Village, Brgy. San Lorenzo,
Makati City
214 Legaspi Village - Salcedo St. Maxicare Tower, 203 Salcedo St., Legaspi Village, Makati City

215 Leon Guinto – Gen. Malvar Wynn Plaza Commercial Unit 2, 1674 Leon Guinto cor. Gen. Malvar
& Agoncillo Sts., Brgy. 694, Zone 075, Malate, Manila
216 Leon Guinto – San Andres G/F Unit A Queen Rose Bldg, 911 San Andres St. cor. Leon Guinto
St., Brgy 723, Malate, Manila
217 Loyola Heights - Berkeley G/F Berkeley Residences, Katipunan Ave. corner Escaler St., Loyola
Residences Heights, Quezon City
218 Macapagal Blvd. - Aseana 3 G/F, Shop 3, Aseana 3, Pres. Diosdado Macapagal Blvd. Corner
Asean Avenue, Aseana City, Brgy. Tambo, Parañaque City
219 Macapagal Blvd. - Bay Area Space Number 2013, Ayala Malls Manila Bay, Diosdado Macapagal
Blvd. Corner Asean Avenue, Brgy. Tambo, Parañaque City
220 Macapagal Blvd. - Meridian Park G/F, Double Dragon Plaza, DD Meridian Park, Macapagal Ave. cor.
EDSA Ext., Bay Area, Brgy. 76, Zone 10, Pasay City
221 Macapagal Blvd. - Pearl Drive Unit Nos. 105 & 106, Scape Bldg., Diosdado Macapagal Avenue
corner Pearl Drive, Brgy. 76, San Rafael, Mall of Asia Complex,
Pasay City
222 Macapagal Blvd. - W Mall G/F W-Mall, Diosdado Macapagal Avenue corner Coral Way, Brgy.
76, Zone 10, Pasay City
223 Magallanes Village Unit 104 The Gate Way Center, Paseo de Magallanes, Magallanes
Village, Makati City
224 Makati Avenue - Zuellig G/F Zuellig Building, Paseo de Roxas corner Makati Avenue, Makati
City
225 Makati Medical Center G/F Makati Medical Center Bldg., Salcedo St. corner Dela Rosa St.,
Legaspi Village, Makati City
226 Makati Shangrila Hotel Unit 191 Shangrila Hotel Manila, Ayala Center, Makati City

227 Makati – Circuit Mall Level 2, L2 049-L2 050, Ayala Malls Circuit, Circuit Makati,
Hippodromo St., Brgy. Carmona, Makati City
228 Makati – Evangelista Macabulos G/F QS Bldg., Evangelista St. corner General Macabulos St., Brgy.
Bangkal, Makati City
229 Makati - Esteban G/F A & V Crystal Tower, 105 Esteban St., Legaspi Village, Makati

230 Makati – Gramercy Residences G/F Gramercy Residences, The Century City, Salamanca St., Brgy.
Poblacion, Makati
231 Makati – Jazz Residences G/F Jazz Residences, Jupiter St. corner N. Garcia St., Brgy. Bel-Air,
Makati City
232 Makati – Metropolitan Avenue G/F Metropolitan Terraces, Metropolitan Avenue corner Sacred
Heart St., (formerly Dao St), Makati City

SEC FORM 17-A 43

 No. BRANCH ADDRESS

233 Malabon – Concepcion G/F Teresita Bldg., No. 4 Gov. Pascual Avenue, Brgy. Baritan,
Malabon City 1470
234 Malabon - Fisher Mall Unit 1F, G/F Malabon – Fisher Mall, Circumferential Road 4 Dagat-
Dagatan Avenue, Brgy Longos, Malabon City 1472
235 Malabon - Gov. Pascual G/F MGC Veranda Bldg., 31 Gov. Pascual Avenue, Tenejeros,
Malabon City
236 Malanday - McArthur Highway G/F & 2/F, 584 MacArthur Highway, Brgy. Malanday, 1405
Valenzuela City
237 Malate - Adriatico Adriatico Executive Center, Adriatico St., Ermita, Manila

238 Mall of Asia – S Maison G/F S Maison, Marina Way, Mall of Asia Complex, Brgy. 76, Zone
10, Pasay City
239 Mall of Asia – Sea Residences Location Code 119-121, G/F Sea Residences, Pearl Drive corner
Sunrise Drive, SM Mall of Asia Complex, Brgy. 76, Zone 10, Pasay
City
240 Mall of Asia – Shell Residences SMDC Shell Residences (LC 123), EDSA corner Road 11, Brgy. 76,
SM Mall of Asia Complex, Pasay City
241 Mall of Asia – Shore Residences Location 120-121, G/F, Shore 1 Commercial, Shore Residences,
Seaside Blvd. Corner Sunrise Drive, SM Mall of Asia Complex, Brgy.
76, Zone 10, Pasay City
242 Mandaluyong - Calbayog DMG Center, Libertad St. corner M. Cruz, Mandaluyong City
243 Mandaluyong – Fame Residences Location Code 131 – 133a, 163-165, G/F Fame Residences, EDSA
and Mayflower St., Brgy. Highway Hills, Mandaluyong City
244 Mandaluyong - Libertad Sierra Madre St. corner Libertad St. Mandaluyong City
245 Mandaluyong - Light Mall G/F Light Mall, Light Residences, EDSA corner Madison St., Brgy.
Barangka Ilaya, Mandaluyong City
246 Mandaluyong – Reliance G/F, Units 3 & 4 Launch Pad Bldg., Reliance corner Sheridan Sts.,
Brgy. Highway Hills, Mandaluyong City
247 Mandaluyong – Rockwell Sheridan Retail 10, G/F The Rockwell Business Center – Sheridan, Sheridan
St. corner United St., Brgy. Highway Hills, Mandaluyong City
248 Manila - Otis 1763 Paz Mendoza Guanzon St., Paco, Manila

249 Marikina Heights G/F Commercial Unit No. 108-110, Puregold & Ayala Malls Marikina,
Liwasang Kalayaan, Brgy. Marikina Heights, Marikina City
250 Marikina - Calumpang Florida 1 Bldg., J.P. Rizal corner M. A. Roxas St., Calumpang,
Marikina City
251 Marikina - Gil Fernando Ave. Gil Fernando Avenue corner Dragon St., Marikina City

252 Marikina - JP Rizal 265 Jose Rizal St., Sta. Elena 1800, Marikina City

253 Marikina - Katipunan G/F 107 Guerdon Commercial Center, Katipunan Avenue cor.
Rainbow St., Brgy. Concepcion Dos, Marikina City
254 Marikina - Lamuan J. P. Rizal St. near corner Malaya St., Brgy. Lamuan, Marikina City

SEC FORM 17-A 44

 No. BRANCH ADDRESS

255 Marikina - Nangka Unit 1A G/F Bldg 2 Citi Centre Nangka, J.P. Rizal Avenue corner
Puerto Rico Avenue, Nangka, Marikina City
256 Marikina - Parang 105 Gen. B. G. Molina St., Brgy. Parang, Marikina City

257 Marikina – Xeland Gil Fernando LS1-04 Xeland, Mayor Gil Fernando Avenue, Brgy. Sto. Niño,
Ave. Marikina City
258 Masangkay Lun Hong Townmates Association Bldg., 1226 Masangkay Sta.
Cruz, Manila
259 Masangkay - CM Recto 1029-1031 JP. Bldg., Masangkay corner Tronqued St., Sta. Cruz,
Manila
260 Masangkay - Luzon St. 907 Luzon St. corner Masangkay St., Tondo, Manila

261 Mascardo - Chino Roces Avenue 1101 Chino Roces corner Mascardo St., Brgy Sta. Cruz, Makati City
262 Mayon - N. Roxas 241 Mayon Avenue corner Nicanor Roxas St., 1161 Quezon City

263 Maysilo Circle – F. Martinez 315 Maysilo Circle, Brgy. Plainview, Mandaluyong Cty
Avenue
264 Meralco - Ortigas Meralco Compound, Ortigas Avenue, 1604 Pasig City
265 Meralco Avenue – Millenium Place Unit 102 Millennium Place, Meralco Ave., Brgy. San Antonio, Pasig
City
266 Mezza Residences G/F Mezza Residences, Aurora Blvd. corner Araneta Avenue,
Guirayan St., Brgy. Doña Imelda, Quezon City
267 Mindanao Ave. Ext. - Brittany EC Center Bldg., Mindanao Ave. Extension cor. Commonwealth
Ave., Brgy. Pasong Tamo Putik, Quezon City
268 Mindanao Avenue – Bagong Pag- Golden Sun Realty Bldg. II, No. 29 Mindanao Avenue, Brgy. Bagong
asa Pag-asa, Quezon City
269 Mindanao Avenue - St. Charbel G/F, Lot 2 Block 1, Mindanao Avenue, Brgy. Tandang Sora, Quezon
City
270 Mindanao Avenue – Tandang Sora G/F & 2/F, No.18 Mindanao Avenue, Brgy. Tandang Sora, Quezon
City
271 Monumento G/F Sunhope Bldg., 78 MacArthur Highway, Brgy. 81, Caloocan City

272 Mother Ignacia – M Place SMDC M Place Sotuh Triangle (LC 106-107), Mother Ignacia corner
Panay Avenue, Brgy. South Triangle, Quezon City
273 Muñoz - Roosevelt 328 Mesa Holding Bldg., San Francisco Del Monte, Quezon City

274 Muntinlupa – East Bay Residences Ground Floor, East Bay Residences, KM21, East Service Road,
Brgy. Sucat, Muntinlupa City
275 Muntinlupa - Poblacion G/F Elizabeth Center Bldg., National Road, Poblacion, Muntinlupa
276 N. Domingo – Gilmore Avenue G/F Gilmore Tower, No. 2 Gilmore Ave. corner N. Domingo St.,
Brgy. Mariana, Brgy. Valencia, New Manila, Quezon City
277 N. Domingo - M. Paterno G/F Maxsteel Bldg., No. 266 N. Domingo St., Brgy. Pasadena, San
Juan City

SEC FORM 17-A 45

 No. BRANCH ADDRESS

278 NAIA 1 Arrival Area, Ninoy Aquino International Airport, Ninoy Aquino
Avenue, 1705 NAIA, Parañaque City
279 NAIA 3 Stall No.13, Arrival Lobby of Terminal 3, Ninoy Aquino International
Airport, Andrews Avenue, Brgy. Villamor, Pasay City
280 Navotas 514 Northbay Blvd. Corner Lacson St., Brgy. Bangkulasi, Navotas
City 1485
281 Neptune - Makati Avenue 101 Neptune St. corner Makati Avenue 1209 Makati City
282 New Manila - E. Rodriguez Sr. Unit 1G & 2E, 284 Dona Anita Bldg., E. Rodriguez Sr. Avenue,
Quezon City
283 Newport City G/F Newport Office Building 1, Newport City, Pasay City
284 Newport City – Plaza 66 Unit Retail 13a, Plaza 66, Newport City, Manlunas St., Brgy. 183,
Villamor Airbase, Pasay City
285 Northbay - Virgo Drive Melandrea V Bldg., Honorio Lopez Blvd. near corner Virgo, North
Bay, Navotas City
286 Novaliches - Quirino Highway 612 Quirino Highway, Brgy. Bagbag, Novaliches, Quezon City
Bagbag
287 Novaliches - Regalado Avenue G/F, Lot 11 Block 114 Regalado Avenue, Brgy. Greater Lagro,
Novaliches, Quezon City
288 Novaliches – S&R Commonwealth G/F, Unit 1, S&R Commonwealth, Commonwealth Avenue corner
Ave. Quirino Highway, Brgy. Kaligayahan, Novaliches, Quezon City
289 Novaliches - Trees Residences The Strip at Trees Residences, Quirino Highway, Brgy. Pasong
Putik, Novaliches, Quezon City
290 Novaliches - Zabarte G/F C.I. Plaza, 1151 Quirino Highway corner Zabarte Road, Brgy.
Kaligayahan, Novaliches, Quezon City
291 Okada Manila Pearl Wing Hotel Pearl Wing, Okada Manila, Atlantic Drive, Asiaworld City,
Boulevard 2000, Brgy. Tambo, Parañaque City
292 Old Sta. Mesa - Albina Newton Plaza, Old Sta. Mesa corner Albina St., Sampaloc, Manila
293 OneE-comCenter G/F One E-com Center, Palm Coast Avenue, Mall of Asia Complex,
Pasay City
294 Ongpin Unit ABC Imperial Sky Garden Ongpin St. corner T. Pinpin St.
Binondo, Manila
295 Ongpin - T. Alonzo G/F Anchor Skysuites, No. 827 Ongpin St., Brgy.300, Zone 29, Sta.
Cruz, Manila
296 Ongpin-Tomas Mapua 1004-1006 Ongpin St. Sta. Cruz, Manila

297 Ortigas Avenue – E. Rodriguez, Jr. Units A-D, G/F L & Y Plaza Bldg., 120 E. Rodriguez Jr. Avenue
corner Ortigas Avenue, Brgy. Ugong, Pasig City
298 Ortigas Avenue Ext. - Pace Bldg Pace Bldg., 98 Granada St., Ortigas Avenue Extension, Barangay
Valencia, Quezon City
299 Ortigas Avenue Ext. - Pasig Along Ortigas Avenue Extension, Rosario, Pasig City
300 Ortigas Avenue Ext. - St. Joseph 15 A, Ortigas Avenue Extension corner Monaco St., Pasig City

SEC FORM 17-A 46

 No. BRANCH ADDRESS

301 Ortigas – Garnet Road Unit 1 G/F Cyberscape Alpha Bldg., Garnet & Sapphire Rds.,
Ortigas Central Business District, San Antonio, Pasig City
302 Ortigas - Octagon Centre G/F Octagon Centre, San Miguel Avenue, Ortigas Center, Pasig City
303 Pablo Ocampo Sr. St. - Arellano Barko Bldg., P. Ocampo Sr. St. corner Arellano Avenue & Enrique
Avenue St., Malate, Manila
304 Pacific Star - Makati G/F Pacific Star Bldg., Sen. Gil Puyat Avenue corner Makati Avenue,
Makati City
305 Paco 1054-1060 Pedro Gil St., Paco, Manila

306 Padre Rada Gosiupo Bldg. 480-482 Padre Rada Corner Elcano St. Tondo,
Manila
307 Parañaque - La Huerta 0422 Quirino Avenue corner J. Ferrer St., La Huerta, Parañaque
City
308 Parañaque - Moonwalk G/F Seal I Bldg., Armstrong Avenue corner Yosemite St., Moonwalk
Subdivision, Parañaque City
309 Parañaque - Moonwalk E. 15413 A&M Bldg., E. Rodriguez Ave. cor. Daang Batang St., Brgy.
Rodriguez Ave. Moonwalk, Parañaque City
310 Parañaque - NAIA Road G/F Park N' Fly Carpark Bldg. 2, NAIA (MIA) Road cor. Mayuga St.,
Brgy. Tambo, Parañaque City
311 Parañaque - Pascor Drive Sky Freight Bldg., Ninoy Aquino Avenue near corner Pascor Drive,
St. Niño, Parañaque City
312 Parañaque - San Antonio Valley 1 San Antonio Plaza, Blk 6 Lot 20 & 21, San Antonio Ave., Brgy. San
Antonio Valley 1, Sucat, Parañaque
313 Parañaque - Sto. Niño Units U & V, Columbia Airfreight Complex, No. 707 Ninoy Aquino
Avenue, Brgy. Sto. Niño, Parañaque City
314 Pasay - Domestic Road Caltex Compound (PDSC/Park 'N Fly Bldg.), NAIA corner Domestic
Road, 1300, Pasay City
315 Pasay - Two Shopping Center 2nd Level. Retail Shops Area, Two Shopping Center, Taft Avenue,
Pasay City
316 Paseo de Roxas 2 G/F BDO Plaza, 8737 Paseo de Roxas St. Makati City
317 Pasig - 106 Shaw Boulevard 106 Shaw Blvd., Brgy. Kapitolyo, Pasig City
318 Pasig - A. Sandoval Ave. G/F Isagabanna Bldg., A. Sandoval Ave. corner Col. R. Fernandez
St., Villa Alegre Subd., Brgy. Pinagbuhatan, Pasig City
319 Pasig - C. Raymundo Ave. JEMCO Bldg., Raymundo Ave. cor. Bernal St., Rosario, Pasig City

320 Pasig – Amang Rodriguez Retail 1, Acacia Escalades, Amang Rodriguez corner Caruncho
Caruncho Road Road, Brgy. Manggahan, Pasig City
321 Pasig - Capitol Commons Estancia Estancia Mall, Capitol Commons, Pasig City
322 Pasig Blvd. - E. Rodriguez Jr. G/F P & J Bldg., Pasig Blvd corner E. Rodriguez Jr. Ave., Brgy. Ilog,
Pasig City
323 Pasig – Felix Ave. Karangalan G/F, Hanlu Bldg., Felix Avenue, Karangalan Village, Brgy.
Manggahan, Pasig City

SEC FORM 17-A 47

 No. BRANCH ADDRESS

324 Pasig - Kapasigan Mariposa Arcade, A. Mabini corner Dr. Pilapil St. Pasig City
325 Pasig - Maybunga G/F Armal Bldg. 3, Blk 1 Lot 1-3, C. Raymundo Avenue, Maybunga,
Pasig City
326 Pasig – San Antonio Meralco Ave. Iriz One Corporate Center, No. 35 Meralco Ave. cor. Gen. Segundo
St., Brgy. San Antonio, Ortigas Center, Pasig
327 Pasig - Meralco Avenue G/F One Corporate Centre, Julia Vargas Avenue corner Meralco
Avenue, Pasig City
328 Pasig - Mercedes Avenue 628 MK Building, Mercedes Avenue, Brgy. San Miguel, Pasig City
329 Pasig - Oranbo Drive G/F A.B. Sandoval Bldg., Shaw Blvd. corner Oranbo Drive, Pasig
City
330 Pasig - Pioneer Pioneer Centre, Pioneer St. corner United & Brixton St., Kapitolyo,
Pasig City
331 Pasig - Pioneer Shaw Blvd. CVFC Corporate Center, Pioneer St. corner San Rafael St., Brgy.
Kapitolto, Pasig City
332 Pasig - Puregold San Joaquin G/F Puregold, 165 M. Concepcion St., Brgy. Buting, Pasig City

333 Pasig - Sixto Antonio Ave. Bedaña Sixto Antonio Avenue corner R. Bedaña St., Pasig City

334 Pasig - Sixto Antonio Ave. - Stella 478 G/F CLM Bldg., Dr. Sixto Antonio Avenue, Brgy. Maybunga,
Maris Pasig City
335 Pasig – The 30th Meralco Avenue LG/F, Space No. L0060-61, Ayala Malls The 30th, Meralco Avenue,
Brgy. Ugong, Pasig City 1604
336 Pasig - The Grove Rockwell G/F The Grove by Rockwell, 117 E. Rodriguez Jr. Avenue, Brgy.
Ugong, Pasig City
337 Pasig – E. Rodriguez Jr. Lanuza G/F Reliance Center, 99 E. Rodriguez Jr. Avenue, Barrio Ugong,
Ave. Pasig City
338 Pasig - Valle Verde Country Club Valle Verde Country Club, Capt. Henry P. Javier St. corner St.
Martin St., Brgy. Oranbo, Pasig City
339 Pasong Tamo Ext. G/F Allegro Center, Pasong Tamo Extension, Makati City

340 Pateros - Poblacion 77 M. Almeda St., Brgy. San Roque, Pateros

341 Pedro Gil - Adriatico Adriatico St. near corner Pedro Gil St., Malate, Manila

342 Pedro Gil - A. Mabini 1567-1571 Salud Bldg., Pedro Gil corner A. Mabini St. Ermita,
Manila
343 Philam Tower – Valero G/F Philamlife Tower, 8767 Paseo de Roxas, Brgy. Bel-Air, Makati
City
344 Plaza Calderon - Pedro Gil G/F Unit C, Harmonic Seven Bldg., 2332- 2334 Pedro Gil corner
Vesta St., Sta. Ana, Manila
345 Port Area - South Harbor G/F Velco Center, R.S. Oca Corner A. C. Delgado St., Port Area,
Manila
346 Potrero G/F Panco Square, 67 MacArthur Highway, Malabon City 1475

SEC FORM 17-A 48

 No. BRANCH ADDRESS

347 Quezon Avenue - Araneta G/F CSP Bldg., 815 Quezon Avenue, Quezon City
348 Quezon Avenue - Cordillera 37 Quezon Avenue corner Cordillera St., Quezon City
349 Quezon Avenue – D. Tuazon Unit 101 & 103, Bernmann Centre, No. 28 Quezon Ave., Brgy. Doña
Josefa, Quezon City
350 Quezon Avenue – Examiner G/F Maxmor Bldg., Examiner St. corner Quezon Ave., Brgy. West
Triangle, Quezon City
351 Quezon Avenue – Fisher Mall UB-Bank 1, Fisher Mall, Quezon Ave. corner Roosevelt Ave., Brgy.
Sta. Cruz, Quezon City
352 Quezon Avenue – Prima G/F Prima Residences, 243 Quezon Avenue, Brgy. Tatalon, Quezon
Residences City
353 Quezon Avenue – South Triangle Unit LG02-03, SKC Service Center Bldg., 1320 Quezon Avenue,
Brgy. South Triangle, Quezon City
354 Quiapo - Quezon Blvd. Quezon Blvd., 1001, Quiapo, Manila
355 Quintin Paredes 524 Enterprise Bldg., Quintin Paredes St. corner Carvajal St.,
Binondo, Manila
356 Quirino Paco CRS Tower Corner, Perdigon St. Pres. Quirino Avenue, Paco,
Manila
357 Rada – Legaspi Village G/F One Legaspi Park, Rada St. Legaspi Village, Makati City
358 Resorts World Manila Newport Blvd., Newport City, Pasay City
359 Rizal Avenue - Bambang 1607 Alvarez St. corner Rizal Avenue, Sta. Cruz, 1003 Manila
360 Rizal Avenue - Batangas St. 2200 Rizal Avenue corner Batangas St., Sta. Cruz, Manila
361 Robinsons - Metro East Level 1 (L1 160 & 162), Robinsons Metro East Mall, Brgy. Dela Paz
Marcos Highway, Pasig City 1611
362 Robinsons – Magnolia Level 1, Unit 107B, Robinsons Magnolia, Aurora Boulevard corner
Dona Hemady St., and N. Domingo St., Brgy. Kaunlaran, New
Manila, Quezon City 1112
363 Robinsons Galleria - Ortigas LG/F Basement Westwing, Robinsons Galleria Mall, Brgy. Ugong
Norte Ortigas Avenue, 1602 Quezon City
364 Robinsons Place - Manila G/F Robinsons Mall corner Pedro Gil, Maria Orosa Sts., Ermita, 072
Brgy. 669, Manila
365 Roces Avenue 57 (Don A.) Roces Avenue, Brgy. Laging Handa, Quezon City
366 Rockwell - Ortigas Level 1, Tower 3 (South), The Rockwell Business Center, Ortigas
Avenue, Brgy. Ugong, Pasig City
367 Rockwell – Power Plant G/F Power Plant Mall, Rockwell Center , Amapola corner Estrella
St., Makati City
368 Roxas Blvd. - Admiral Baysuites G/F Admiral Baysuites, 2138 Aldecoa St. corner M.H. Del Pilar St.,
Brgy. 701, Malate, Manila
369 Roxas Blvd. - Breeze Residences Unit 101-102, G/F SMDC Breeze Residences, Roxas Blvd., Brgy. 5,
Zone 2, Pasay City
370 Roxas Blvd. - Crowne Bay Tower Unit 101 Crowne Bay Tower, along Roxas Blvd., Brgy. Baclaran,
Parañaque City

SEC FORM 17-A 49

 No. BRANCH ADDRESS

371 Roxas Blvd. - R. Salas S & L Bldg., Roxas Blvd. St. corner Romero Salas St., Ermita,
Manila
372 Roxas Blvd. - Radiance Manila Bay Retail No. 3, Radiance Manila Bay, Roxas Blvd., Brgy 001, Pasay
City
373 Salcedo - Dela Rosa Golden Rock Bldg., 168 Salcedo St., Legaspi Village, Makati City
374 Salcedo - Gamboa Optima Building, Salcedo St. near corner Gamboa St., Legaspi
Village, Makati City
375 Sales St. - Raon 545 Sales St. corner G. Puyat St. (Raon) 1016 Sta. Cruz, Manila
376 Sampaloc – A.H. Lacson G/F JHL Centre Bldg., #519 A.H. Lacson St., Brgy 434, Zone 44,
Sampaloc, Manila
377 Sampaloc – Legarda G/F Legarda Place Bldg., 2327 Legarda St., Sampaloc 042, Brgy.
416, Manila
378 Sampaloc – Pureza TP Building, No. 0414 Pureza Extension, Brgy. 425, Zone 043,
Sampaloc, Manila
379 Samson Road G/F Ma. Cristina Bldg. Samson Road corner UE Tech. Caloocan
City
380 San Andres San Andres corner A. Linao St., Malate, Manila
381 San Juna – P. Guevarra G/F No. 299 P. Guevarra St., Brgy. Little Baguio, San Juan City
382 San Juan – Pinaglabanan G/F, Benson Apartelle, No. 627 & 629 Pinaglabanan St., Brgy.
Corazon de Jesus, San Juan City 1500
383 San Juan – Santolan Town Plaza G/F Santolan Town Plaza, 276 Santolan Road, Brgy. Little Baguio,
San Juan City
384 Savemore Novaliches Savemore Novaliches, General Luis St., Novaliches, Quezon City
385 Savemore - Amang Rodriguez G/F Savemore Amang Rodriguez, GBU Bldg., Amang Rodriguez
Avenue corner Evangelista St., Brgy. Santolan, Pasig City
386 Savemore - Marulas NF-5 & NF-6, G/F Savemore Marulas Valenzuela, 40 Pio Valenzuela
St., Brgy. Marulas, Valenzuela City 1440
387 Savemore - Nagtahan G/F Savemore Nagtahan, Magsaysay Blvd. corner Nagtahan Road,
Brgy. 634 Sampaloc, Manila
388 Savemore - Project 8 Savemore Project 8, Benefit St. corner Redemption and Grant St.,
Brgy. Sangandaan, Project 8, Quezon City
389 Scout Albano - Quezon Avenue 1488 Quezon Avenue, 1103 South Triangle, Quezon City
390 Scout Limbaga - T. Morato 102 & 103 The Forum, Tomas Morato Avenue corner Scout Limbaga
St., 1103, Quezon City
391 Shangri-La Plaza Mall - EDSA Unit 516-517, Level 5 Shangri-La Plaza Mall, EDSA cor. Shaw Blvd.,
Brgy Wack-wack, Mandaluyong City
392 Shaw - Pasig Blvd. 145 Shaw Boulevard, Pasig City
393 Shaw Blvd. - Beacon Plaza UG 105-UG 106 Beacon Plaza, Shaw Blvd. corner Ideal St.,
Mandaluyong City
394 Shaw Blvd.- High Pointe Center G/F Units 125 -128 High Pointe Center, Shaw Boulevard corner M.
Yulo St., Brgy. Bagong Silang, Mandaluyong City

SEC FORM 17-A 50

 No. BRANCH ADDRESS

395 Shaw Blvd. - Mandala Park G/F Units 1 & 2, Bldg. B, Shaw Blvd, Mandala Park, Brgy. Pleasant
Hills, Mandaluyong City
396 Shaw Blvd.-Wack-Wack Unit A, BCC Showroom, 545 Shaw Blvd., Brgy Wack-Wack,
Mandaluyong City
397 Project 8 - Shorthorn BDO Bldg., No. 41 Shorthorn St., Barangay Toro, Project 8, Quezon
City
398 Silver City - Pasig G/F Silver City Building 3, Frontera Verde, Ortigas Center, Pasig
City
399 SM Aura Premier LG/F SM Aura Premier, Bonifacio Global City, Brgy Fort Bonifacio,
Taguig City
400 SM Center Las Piñas LGF SM Center Las Piñas, Alabang-Zapote Road, Barangay
Pamplona Dos, Las Piñas City
401 SM Center Muntinlupa UG/F SM Center Muntinlupa, Brgy. Tunasan, National Road,
Muntinlupa City
402 SM Center Sangandaan G/F SM Center Sangandaan, Marcelo H. Del Pilar St. corner
Samson Road, Brgy. 003, 1408 Caloocan City
403 SM Cherry Congressional LC 004-006 & 111-113, SM Cherry Congressional, Congressional
Ave., Brgy. Bahay Toro, Quezon City
404 SM Cherry Shaw SM Cherry Foodarama Shaw Blvd. (LC CS 1-09), Shaw Blvd. corner
Old Wack-Wack Rd., Brgy. Pleasant Hills, Mandaluyong City
405 SM City BF Parañaque G/F SM City BF Parañaque, Dr. A. Santos Avenue, Brgy. BF
Homes, Sucat, Parañaque City
406 SM City Bicutan UGF/LG/F and MF SM City Bicutan, Dona Soledad Avenue corner
West Service Road, Paranaque City
407 SM City East Ortigas SM City East Ortigas (LC180-183) , Ortigas Avenue Extension, Brgy.
Sta. Lucia, Pasig City
408 SM City Fairview A Location Code AX3 175-179, LG/F SM City Fairview, Quirino
Highway corner Ragalado St., Brgy. Greater Lagro, Fairview,
Quezon City
409 SM City Fairview B SM City Fairview, Quirino Highway corner Regalado Avenue,
Fairview, Quezon City
410 SM City Fairview C LGF, Annex 2, SM City Fairview, Quirino Highway corner Regalado
Avenue, Fairview, Quezon City
411 SM City Grand Central LC 024B; 025-027, LG/F, SM City Grand Central, Rizal Avenue
Extension, Grace Park East, Brgy. 88, Zone 8, District II, Caloocan
City 1403
412 SM City Manila LG/F SM City Manila, Concepcion corner Arroceros and San
Marcelino St. Manila
413 SM City Marikina G/F SM City Marikina, Barangay Calumpang, Marikina City
414 SM City North EDSA A G/F The Block SM City North, EDSA corner North Avenue, Quezon
City
415 SM City North EDSA B SM City North EDSA Annex I Bldg., North Avenue corner EDSA,
Quezon City

SEC FORM 17-A 51

 No. BRANCH ADDRESS

416 SM City North EDSA C SM Center Complex North EDSA, 1105 Quezon City
417 SM City North EDSA D G/F BPO Tower 3, SM City North EDSA Complex, EDSA corner
North Avenue, Brgy. Bagong Pag-asa, Quezon City
418 SM City Novaliches G/F SM City Novaliches, Quirino Highway, Novaliches, Quezon City
419 SM City San Lazaro Felix Huertas corner A.H. Lacson St. Sta. Cruz, Manila
420 SM City Sta. Mesa SM City Sta. Mesa Annex Bldg. Aurora Blvd. Quezon City
421 SM City Sucat A G/F SM Supercenter Sucat, Paranque City
422 SM City Sucat B G/F Annex Bldg. B SM City Sucat, Dr. A Santos Avenue, Parañaque
City
423 SM City Valenzuela Unit 126 G/F SM City Valenzuela, McArthur Highway, Brgy.
Karuhatan Valenzuela City 1441
424 SM Retail HQ Bldg. B SM Retail Headquarters Bldg. B LC 106-110B Sunrise Drive corner
Bayshore Avenue Mall of Asia Complex, Brgy. 76, Pasay City
425 SM Cubao G/F SM Cubao, Cubao, Quezon City
426 SM Hypermarket Adriatico G/F SM Hypermarket Adriatico, M. Adriatico St., Manila
427 SM Hypermarket Cubao EDSA corner Main Street, Cubao, Quezon City
428 SM Hypermarket FTI Taguig G/F SM Hypermarket FTI Taguig, Lot 85 A & B, DBP Avenue, FTI
Complex, Brgy. Western Bicutan, Taguig City
429 SM Hypermarket Makati SM Hypermarket Makati, 5560 Osmeña Highway corner Finlandia
St, San Isidro, Makati City
430 SM Hypermarket Novaliches G/F SM Hypermarket Novaliches, No. 402 Quirino Highway, Brgy.
Talipapa, Novaliches, Quezon City
431 SM Center Pasig G/F SM Supercenter Pasig, Frontera Verde, Ortigas Center, Pasig
City
432 SM Hypermarket Sucat – Lopez SM Hypermarket Sucat-Lopez (LC102-103), Dr. A. Santos Ave.,
Brgy. San Isidro, Sucat, Paranaque City
433 SM Makati G/F (GF05) Shoemart Bldg., Ayala Center, Brgy. San Lorenzo,
Makati City
434 SM Mall of Asia A LC 3133-3135 MM, 3/F Main Mall, SM Mall of Asia, J.W. Diokno
Blvd., Mall of Asia Complex, Brgy. 76, Zone 10, Pasay City
435 SM Mall of Asia B G/F Entertainment Mall, SM Mall of Asia, J.W. Diokno Blvd., Mall of
Asia Complex, Brgy. 76, Pasay City
436 SM Megamall A UG/F SM Megamall Bldg. A (LC121a-1 & 121a-2), Brgy. Wack-
Wack, Greenhills West, Ortigas Center, Mandaluyong City
437 SM Megamall B Upper & Lower Ground Floors, SM Megamall Bldg. B Julia Vargas
corner EDSA Ortigas Center, Mandaluyong City
438 SM Megamall C UG/F SM Megamall Bldg. A (LC 115A), Brgy. Wack-Wack,
Greenhills West, Ortigas Center, Mandaluyong City
439 SM Southmall A UG/F SM Southmall, Alabang - Zapote Road Las Piñas City
440 SM Southmall B UG/F SM Southmall, Alabang - Zapote Road, Las Piñas City

SEC FORM 17-A 52

 No. BRANCH ADDRESS

441 SM Retail HQ Bldg. A SM Retail Headquarters Bldg. A Location Code 104-105 A J. W.

Diokno corner Seaside Blvd. Mall of Asia Complex, Brgy. 76 Pasay
City
442 Solaire - Manila Resort Solaire Manila, Bagong Nayong Pilipino Entertainment City,
Parañaque City
443 Solaire - The Shoppes Solaire Resorts and Casino Manila, Ang Bagong Nayong Pilipino
Entertainment City, Brgy. Tambo, Parañaque City
444 Soler U-1118 & 1120 Gracetown Bldg. corner Soler & Alvarado St.
Binondo, Manila
445 Soler - Reina Regente 1087 Soler St., Binondo, Manila
446 Southgate Mall - EDSA G/F Southgate Mall, EDSA corner Pasong Tamo Ext., Makati City
447 Sta. Ana – Xentro Mall Space No. LS-02, Xentro Mall Sta. Ana City Market, Pedro Gil
St.,Brgy 876, Zone 96, Sta. Ana, Manila
448 Sta. Mesa – V. Mapa G/F & MF, Units H,I,J, LJS Logistics Center, No. 3331, V. Mapa St.
cor. Second St., Brgy. 601, Sta. Mesa, Manila
449 Sta. Mesa – Silk Residences G/F Retail 5, The Silk Residences, Ramon Magsaysay Boulevard
corner Santol St., Zone 057, Brgy. 586, Sta. Mesa, Manila
450 Sta. Mesa Heights – D. Tuazon G/F, Unit ABC, TCC Center, 190 D. Tuazon St., Brgy. Maharlika,
Sta. Mesa Heights, Quezon City
451 Starmall - Alabang Unit G33 Manuela Metropolis, South Superhighway, Alabang
Interchange, Muntinlupa City
452 Sto. Cristo 475-477 Kim Siu Ching Foundation Bldg., Sto. Cristo St., Binondo,
Manila
453 Sto. Cristo - Commercio 686 Sto Cristo St., Binondo, Manila
454 Sto. Domingo 6 Sto. Domingo Avenue, Quezon City
455 Sto. Niño St. - Roosevelt 284 Roosevelt Avenue, San Francisco Del Monte, 1105 San
Antonio, Quezon City
456 Sucat - Villa Mendoza Dr. A. Santos Avenue corner Villa Mendoza Subdivision, Sucat
Road, Parañaque City 1700
457 Sun Residences G/F Sun Residences, España Blvd. corner Mayon St., Brgy. Sta.
Teresita, Quezon City
458 Tabora 859-861 L & J Bldg. Tabora St., Divisoria, Manila
459 Taft - Libertad 2250 MCF Bldg., Taft Avenue corner College Road, Pasay City
460 Taft - Pedro Gil 1430 Taft Avenue, Manila
461 Taft Avenue - J. Nakpil 1747 Taft Avenue Corner J. Nakpil St., Manila
462 Taft Avenue - Pres. Quirino G/F FFW Bldg., 1943 Taft Avenue, Malate, Manila
463 Taguig – Grace Residences Grace Residences (Location Code 131-132), Levi B. Mariano
Avenue, Brgy. Ususan, Taguig City
464 Taguig - Levi Mariano Avenue 160 Levi Mariano Avenue, Brgy Ususan, Taguig City
465 Taguig – Vista Mall GF-108A Vista Mall Taguig, Camella Road, Brgy. Tuktukan (formerly
Brgy. Sta. Ana), Taguig City

SEC FORM 17-A 53

 No. BRANCH ADDRESS

466 Tandang Sora - Commonwealth Tierra Commercial Center Bldg., Commonwealth Ave. corner
Tandang Sora Ave., Quezon City
467 Tandang Sora – Culiat Royal Midway Plaza, No. 419 Tandang Sora Avenue, Brgy. Culiat,
Quezon City
468 Tandang Sora – San Vicente de ERN Commercial Complex, Tandang Sora Avenue, Brgy. Tandang
Paul Sora, Quezon City
469 Tandang Sora - Tagumpay M & J Bldg., 578 Tandang Sora Avenue corner Tagumpay St., Brgy.
New Era, Quezon City
470 Tayuman G/F Delton Bldg., 1808 Rizal Avenue, Sta. Cruz, Manila
471 Teacher's Village 115 Maginhawa St., Brgy Teacher's Village, Quezon City
472 ThreeE-comCenter Location Code 107, G/F, Three E-com Center, Block 21 Harbor
Drive corner Bay Shore, Mall of Asia Complex, Brgy. 76 Zone 10,
Pasay City
473 Timog 26 Cedar Executive Building, Timog Avenue corner Scout Tobias
St., Quezon City
474 Timog - EDSA G/F GEMPC Bldg., 132 Timog Avenue, Brgy. Sacred Heart, 1103
Quezon City
475 Timog - Rotonda G/F Imperial Palace Suites, Tomas Morato corner Timog Avenue,
South Triangle, Quezon City
476 Timog - Scout Torillo Unit 11& 12, Timog Arcade, Timog Avenue corner Scout Torillo,
Brgy. South Triangle, Quezon City
477 Timog - Victoria Towers Unit F-2 & F-3 Victoria Towers, Timog Avenue corner Panay
Avenue, Quezon City
478 Tomas Morato – Metrofocus G/F, Units 101 & 102, Metrofocus Commercial Bldg., Tomas Morato
Commercial Avenue, Brgy. Kristong Hari, Quezon City
479 Tondo - Gagalangin 2459 Juan Luna St. corner Paez St., Gagalangin, Tondo, Manila
480 Tondo - Pritil 1815 N. Zamora St., 1012 Tondo, Manila
481 Tordesillas - Gallardo G/F Cambridge Centre, 108 Tordesillas corner Gallardo St. Salcedo
Village, Makati City
482 Tordesillas - The Orient Mansion G/F The Orient Mansion Condominium, 118 Tordesillas St. near
corner H.V. dela Costa, Brgy. Bel-Air, Salcedo Village, Makati City
483 Trident - Gil Puyat G/F Trident Tower Bldg., 312 Sen. Gil. Puyat Avenue, Makati City
484 UN Avenue Puso ng Maynila Bldg., UN Avenue corner A. Mabini St., Ermita,
Manila
485 UN Avenue – Times Plaza Units 16 & 17 G/F, Units SC-3A & SC-8B 2F, Times Plaza Bldg.,
U.N. Avenue corner Taft Ave., Brgy. 666, Ermita, Manila
486 V. Luna - Kalayaan Avenue Unit 101 Kalayaan Center Bldg., 65-67 V. Luna Road corner
Kalayaan Avenue corner Maginoo St., Brgy. Pinyahan, Quezon City
487 V - Mall G/F New V- Mall, Greenhills Shopping Center, San Juan, MM
488 V.A. Rufino - Dela Rosa GF Unit 103 Plaza 100 Building, Rufino St. cor. Dela Rosa St., Brgy.
San Lorenzo, Makati City

SEC FORM 17-A 54

 No. BRANCH ADDRESS

489 V. A. Rufino - Sotto 115 YL Building, V.A. Rufino cor. Sotto St. Legaspi Village Brgy. San
Lorenzo, Makati City
490 V.A. Rufino - Tuscan G/F Tuscan Condominium, 114 V. A Rufino St., Legaspi Village,
Makati City
491 Valenzuela Km. 15 MacArthur Highway, Dalandanan Valenzuela
492 Valenzuela - Gateway Complex Valenzuela Gateway Complex, 318 GS Paso De Blas St., Brgy.
Paso De Blas, Valenzuela City
493 Valenzuela - Gen. T. De Leon Gen. T. De Leon St., Valenzuela City
494 Valenzuela – Happy Go Shopping Shop 2, Happy Go Shopping Mall, Ibaba St., Brgy. Bignay,
Mall Valenzuela City
495 Valero - Salcedo Village G/F Pearlbank Center, 146 Valero St. Salcedo Village, Makati City
496 Villar - Salcedo Village Eurovilla III Condominium, 154 Villar St. corner L.P. Leviste St.,
Salcedo Village, Makati City
497 Visayas Avenue 30 Visayas Ave. near corner Congressional Ave., Brgy. Bahay Toro,
Quezon City
498 Waltermart - North EDSA G/F Walter Mart Center - North EDSA, Dangay St., Veterans Village,
Quezon City
499 Waltermart - Bicutan G/F Waltermart Bicutan, Km 16 East Service Road corner Mañalac
Avenue, Brgy San Martin de Porres, Bicutan, Parañaque
500 Waltermart – E. Rodriguez WQCC 019, Waltermart E. Rodriguez, No. 222 Pacific Center E.
Rodriguez Sr. Avenue, Brgy. Kalusugan, Quezon City
501 Waltermart - Sucat G/F Waltermart Sucat, Dr. A Santos Ave, Paranaque City
502 Washington - Gil Puyat G/F Keystone Bldg., 220 Gil Puyat Avenue, Makati City
503 West Avenue - Baler G/F 118 Jafer Bldg., 118 West Avenue, Quezon City
504 West Avenue - Del Monte 40 West Avenue, 1104 West Triangle, Quezon City
505 West Avenue-East Maya 160 Ground floor Columbian Bldg., Near corner EDSA, West Avenue
corner East Maya Drive, Philam, Quezon City
506 Zabarte – Kaligayahan Lot 16 Block 5, Zabarte Road, Brgy. Kaligayahan, Quezon City
507 Zurbaran Rizal Avenue corner Fugoso St., Sta. Cruz, Manila

(e) Provincial Branches:

1. Lot leased

No. BRANCH ADDRESS

1 Angono - National Highway Lot 3 Blk. 4, M.L. Quezon Avenue, Brgy. San Isidro, Angono, Rizal

2 Bacoor - New Molino Blvd. New Molino Blvd., Brgy. Molino 3, Bacoor , Cavite
3 Bacoor Molino - Bahayang Pag - L-20 B-5 Avenida Rizal St., Bahayang Pag-asa Subd., Brgy. Molino
asa 5, Bacoor, Cavite

SEC FORM 17-A 55

 No. BRANCH ADDRESS

4 Baliwag - Poblacion B.S. Aquino corner J. Buizon, Brgy. Poblacion, Baliwag, Bulacan

5 Bataan - Mariveles FAB Avenue of the Philippines cor. 8th Avenue,

Freeport Zone of Bataan (the FAB), Mariveles, Bataan
6 Batangas - Mabini National Road, Brgy. Pulong Niogan, Mabini, Batangas
7 Batangas - Rosario BDO Bldg., G. Carandang St., Barangay C Poblacion, Rosario,
Batangas
8 Bocaue - MacArthur Highway MacArthur Highway, Brgy. Wakas, Bocaue, Bulacan
9 Bohol Tagbilaran - Visarra C.P. Garcia Avenue near corner Visarra St., Bohol, Tagbilaran City

10 Bulacan - Obando 224 J.P. Rizal St., Brgy Pag-asa, Obando, Bulacan
11 Cabanatuan - Sanciangco Sanciangco St., Cabanatuan City
12 Cagayan De Oro - Bulua Zone 3 Upper Bulua, Butuan-Cagayan de Oro-Iligan Rd., Cagayan
de Oro City, 9000 Misamis Oriental
13 Cagayan De Oro - Limketkai L-6 B-2, Limketkai Ave., Limketkai Commercial Complex, Brgy. 31,
Poblacion, Cagayan De Oro City, Misamis Oriental
14 Cavite - Dasmariñas Aguinaldo Gen. Emilio Aguinaldo Highway corner Natividad St., Dasmariñas,
Highway Cavite
15 Cavite - Dasmariñas FCIE Governor's Drive, Barangay Langkaan, Dasmariñas, Cavite
16 Cavite - EPZA Cavite EPZA Compound, 4106 Rosario, Cavite
17 Cavite - Naic Governor's Drive corner Soriano Highway, Naic, Cavite
18 Cavite - Silang J.P. Rizal St. cor. Kiamzon St., Brgy. Poblacion III, Silang, Cavite
19 Cebu - Carcar Dr. Jose Rizal St., Barangay Poblacion, Carcar City, Cebu
20 Cotabato - Kabacan Rizal Avenue, National Highway, 9407 Kabacan, North Cotabato
21 Cotabato Midsayap – Quezon Quezon Avenue, Brgy. Poblacion 5, Midsayap, North Cotabato
Avenue
22 Dumaguete - Silliman Campus North National Highway, Dumaguete City, Negros Oriental
23 Iloilo - Central Iznart St. Lot 317-B-2-A-1, 5000 Iloilo City, Iloilo
24 Iloilo - Molo M.H. Del Pilar St., corner Jocson St., Molo, Iloilo City
25 Kawit - Binakayan Lot 305 – B-3, 140 National Road, Brgy. Binakayan, Kawit, Cavite
26 Mactan - EPZA 1 Mactan-EPZA Compound, 6000 Lapu-Lapu City, Cebu
27 Masbate Quezon St., Brgy. Pating, Masbate City
28 Meycauayan - MacArthur Highway MacArthur Highway, Brgy. Calvario, Meycauayan, Bulacan
29 Ozamiz – Rizal Avenue J.P. Rizal Avenue corner H.T. Feliciano St., 50th District, Ozamiz
City, Misamis Occidental
30 Pangasinan – Lingayen 80 Avenida Rizal East, Lingayen, Pangasinan
31 Quezon – Sariaya Maharlika Road corner Rizal St. corner Quezon St.,Brgy. Poblacion,
Sariaya, Quezon

SEC FORM 17-A 56

 No. BRANCH ADDRESS

32 San Pedro - Rosario Complex 1 Lots 11 & 12, Rosario Avenue Complex 1, San Pedro, Laguna
33 Tarlac – Paniqui M. H. Del Pilar St., McArthur Highway, 2307 Paniqui, Tarlac

2. Building leased

No. BRANCH ADDRESS

1 Abra - Bangued Unit 12 The Rosario Bldg., Taft St. corner Magallanes St., 2800
Bangued, Abra
2 Agusan del Sur – San Francisco G/F Stall 28 & 29, Gaisano Grand Mall San Francisco, Davao-
Gaisano Agusan National Highway, Brgy. 5, San Francisco, Agusan del Sur
3 Aklan - Kalibo Along XIX Martyrs St., Kalibo, Aklan 5600
4 Aklan - Boracay Station 2, Brgy. Balabag, Boracay Island, Malay, Aklan
5 Aklan - CityMall Boracay Units 5-6 & 11-12 CityMall Boracay Sitio Diniwid, Brgy. Balabag,
Boracay Island, Malay, Aklan
6 Aklan - CityMall Kalibo Units 123-125 CityMall Kalibo, F. Quimpo St., Brgy. Andagao,
Kalibo, Aklan
7 Albay - Daraga Rizal St. corner Burgos St., Brgy Centro Ilawod, Daraga, Albay

8 Albay – Polangui Provincial Road corner Brgy. Road, Brgy. Ubaliw, Polangui, Albay

9 Albay - Tabaco Along Ziga Avenue, Tabaco, Albay

10 Angeles - Friendship Highway ECCO Bldg., Fil-Am Friendship Highway, Brgy. Anunas, Angeles
City, Pampanga
11 Angeles – Marquee Mall Level 1, Space No. 1070, Marquee Mall, A. Gueco St., Brgy. Pulung
Maragul, Angeles City, Pampanga 2009
12 Angeles - Nepo Mart Entec Bldg., Teresa Avenue, Nepo Mart Complex, Brgy. Cutcut,
Angeles City, Pampanga
13 Angeles - Sto. Domingo Bee King Bldg., MacArthur Highway, Brgy. Sto. Domingo, Angeles
City, Pampanga
14 Angono – Xentro Mall G/F AB Commercial Plaza, M.L. Quezon Avenue, Brgy. San Isidro,
Angono, Rizal
15 Antipolo Plaza Gatsby Bldg. II, M. L. Quezon St., Antipolo
16 Antipolo - B. V. Soliven Blk 24, Lot 1, Benito V. Soliven Avenue, Greenheights Subdivision,
Brgy. Mayamot, Antipolo City
17 Antipolo - Circumferential Rd. G/F 1 Cirq Bldg., Circumferential Road, Bgy. San Roque, Antipolo
City
18 Antipolo – M.L. Quezon St. 151 M.L. Quezon St., Brgy. San Roque, Antipolo City
19 Antipolo - Sumulong Highway BDO Bldg., Sumulong Highway, Masinag, Mayamot, Antipolo

20 Antipolo – Xentro Mall LS01-05, Xentro Mall Antipolo, Sumulong Highway, Brgy.
Mambugan, Antipolo City

SEC FORM 17-A 57

 No. BRANCH ADDRESS

21 Bacoor – Puregold Panapaan G/F Commercial Unit No. 2-4, Puregold Bacoor Cavite, Aguinaldo
Highway, Brgy. Panapaan, Cavite
22 Bacoor – Zapote Zapote Centre, Aguinaldo Highway, Zapote Road, Barangay Zapote
4, Bacoor, Cavite
23 Bacolod - Araneta Cineplex Complex, Araneta St., Bacolod City

24 Bacolod - East Block IT Park G/F Villa Angela East Block Bldg A, The Block IT Park, Carlos
Hilado National Highway, Bacolod City
25 Bacolod - Goldenfield Building 1, Goldenfield Commercial Complex, Araneta St., Brgy.
Singcang, Bacolod City
26 Bacolod - Gonzaga Gonzaga - Lopez Enterprise Bldg., Gonzaga St. Bacolod City
27 Bacolod - Hilado Hilado corner F. Y. Manalo St., 6100 Bacolod City, Negros
Occidental
28 Bacolod - Libertad Corner Hernaez St. & Lopez Jaena St., Bacolod City, Negros
Occidental
29 Bacolod - Mandalagan G/F Sta. Clara Estate Bldg., Lacson St., Mandalagan, Bacolod City
30 Baguio - Abanao Square Abanao Square, Abanao corner Zandueta St., Baguio City

31 Baguio - Bokawkan Road 69 Bokawkan Road, Brgy. Dizon Subdivision, Baguio City
32 Baguio - Harrison Road G/F Our Lady of Lourdes Bldg., No.7 Harrison Rd., Brgy. Harrison
Carantes Claudio, Baguio City
33 Baguio - Kennon Road C & Triple A Bldg., Kennon Road corner Parisas St., Camp 7 Brgy.
Baguio City
34 Baguio - Legarda Our Lady of Fatima Bldg. Yandoc St. Kayang Extension, Baguio City
35 Baguio – Leonard Wood Road ETCC Commercial Complex, Leonard Wood Road, Brgy. Cabinet
Hill – Teachers Camp, Baguio City
36 Baguio - Luneta Luneta Hill corner Gov. Pack Road, Session Road, Baguio City
37 Baguio - Marcos Highway Balsigan G/F ECCO Bldg., No. 39 Marcos Highway,
Brgy. Imelda Village, Baguio City
38 Baguio - Marcos Highway G/F Centerpoint Plaza, Marcos Highway, Brgy Bakakeng Central,
Centerpoint Baguio City
39 Baguio - Session Road G/F National Life Bldg., Session Road, Baguio City
40 Balanga - Capitol Drive G/F CT Edifice, Capitol Drive corner Kinatawan Road, Balanga City,
Bataan
41 Bataan - Orani Provincial Road corner Calle Coronel Leyba, Brgy. Parang-Parang,
Orani, Bataan
42 Batangas - Balayan Antorcha St., Balayan, Batangas
43 Batangas - Bauan Kapitan Ponso St., Bauan, Batangas
44 Batangas - Diego Silang Tom’s Place, Diego Silang St. corner Maria de Jesus, Brgy. 15,
Batangas City

SEC FORM 17-A 58

 No. BRANCH ADDRESS

45 Batangas - First Phil. Industrial G/F Administration Bldg., First Philippine Industrial Park, Brgy. Sta.
Park Anastacia, Sto. Tomas, Batangas
46 Batangas - Gulod MB Bldg., Batangas Tabangao-Lobo Road, Brgy. Gulod Labac,
Batangas City, Batangas
47 Batangas - Kumintang Along National Highway, Brgy. Kumintang Ilaya, Batangas City,
Batangas
48 Batangas - Lemery Ilustre Ilustre Avenue corner Lakandula St., Lemery, Batangas
49 Batangas - Lemery Xentro Mall G/F Xentro Mall Lemery, Brgy. Malinis, Lemery, Batangas

50 Batangas - Lima Technology Units R08-S02, Block E, The Outlets at Lima Technology Center,
Center Brgy. Bugtong na Pulo, Lipa City, Batangas 4217
51 Batangas - P. Burgos P. Burgos St. corner Evangelista St., Brgy. Poblacion, Batangas City
52 Batangas - San Juan Marasigan corner Kalayaan St., San Juan, Batangas
53 Benguet - La Trinidad G/F VC Arcadain Bldg., Km. 5, La Trinidad, Benguet
54 Biñan Central Mall G/F Biñan Central Mall, Units 8 & 9, Malvar St. corner Old National
Highway, Biñan, Laguna
55 Biñan - A. Mabini Rey Bldg., A. Mabini St., Poblacion, 4024 Binan, Laguna
56 Biñan – San Antonio Alalmeda 2 Arcade, Tulay Bato Old National Highway, Brgy. San
Antonio, Biñan City, Laguna
57 Bohol - Panglao G/F Units 1-5, Hennan Resort Commercial Bldg., Panglao
Circumferential Road, Brgy. Tawala, Panglao Island, Bohol
58 Bohol - Tagbilaran CP Garcia Avenue., 6300 Tagbilaran City, Bohol
59 Bohol – Tubigon Holy Cross Academy, National Highway, Brgy. Centro, Tubigon,
Bohol
60 Bulacan - Balagtas McArthur Highway, Brgy. San Juan, 3016 Balagtas, Bulacan
61 Bulacan - Bocaue MacArthur Highway, Brgy. Biñang 1st, Bocaue, Bulacan
62 Bulacan - Bustos LRM Complex, Hilario St., Brgy. Poblacion, Bustos, Bulacan

63 Bulacan - Hagonoy Provincial Road, Brgy. Sto. Niño, Hagonoy, Bulacan

64 Bulacan - Norzagaray G/F Price Ken Bldg. II Circle, Gen. Alejo G. Santos Highway, Brgy.
Partida, Poblacion, Norzagaray, Bulacan
65 Bulacan - Primark Plaridel Primark Plaridel, Cagayan Valley Road, Brgy. Banga 1st, Plaridel
Bulacan
66 Bulacan - Pulilan Doña Remedios Trinidad Highway, Sto. Cristo, Pulilan, Bulacan

67 Bulacan - Puregold Baliwag G/F Puregold Baliwag, Benigno S. Aquino Ave., Brgy. Bagong
Nayon, Baliwag, Bulacan
68 Bulacan - Puregold Bulakan G/F Commercial Unit 1, Puregold Bulakan, Brgy. Bagumbayan,
Bulakan, Bulacan
69 Bulacan - San Jose Del Monte National Highway, Tungkong Mangga, San Jose Del Monte City,
Bulacan

SEC FORM 17-A 59

 No. BRANCH ADDRESS

70 Bulacan - San Miguel Maharlika Highway, Brgy. Camias, San Miguel, Bulacan
71 Bulacan - San Rafael Km. 59.5, Cagayan Valley Road, Brgy.Maguinao, San Rafael,
Bulacan
72 Bulacan - Sapang Palay G/F Elizabeth Place 1 Bldg., Bagong Buhay Ave., Brgy. Sapang
Palay, San Jose Del Monte City, Bulacan
73 Bulacan - Sta. Maria M.G. De leon 15 M.G. De Leon St., Poblacion, 3022 Sta. Maria, Bulacan

74 Bulacan - Sta. Rita Guiguinto 126 Cagayan Valley Road, Brgy. Sta. Rita, Guiguinto, Bulacan

75 Bulacan Sta. Maria - Bagbaguin NEM Bldg., Gov. F. Halili Avenue, Bagbaguin, Sta. Maria, Bulacan

76 Bulacan Sta. Maria - Pulong GRECON Bldg., Km. 38 National Road, Brgy. Pulong Buhangin, Sta.
Buhangin Maria, Bulacan
77 Butuan - Estacio Village Butuan Doctor’s College, J.C. Aquino Ave. cor. Victoria St., Brgy.
Bayanihan, Butuan City, Agusan del Norte
78 Butuan - J.C. Aquino Avenue D & V Plaza II Bldg., J.C. Aquino Avenue, Butuan City
79 Butuan - Montilla Montilla Blvd. near corner Lopez Jaena St., Butuan City, Agusan Del
Norte
80 Cabanatuan - Maharlika Highway G/F DGS Bldg., Along Maharlika Road, Bitas, Cabanatuan City
North
81 Cabanatuan - Paco Roman Along Paco Roman St., Cabanatuan City, Nueva Ecija
82 Cagayan – CityMall Aparri CityMall Aparri, Cagayan Valley Road, Barrio of Macanaya,
Cagayan
83 Cagayan de Oro - Carmen Max Y. Suriel St. corner V. Neri St., Carmen, Cagayan de Oro
84 Cagayan de Oro - Cogon JR Borja St., Cogon, Cagayan de Oro City

85 Cagayan de Oro - Hayes G/F Trendline Department Store, Arch James Hayes St., Cogon,
Cagayan de Oro City
86 Cagayan de Oro - Osmeña Pres. S. Osmeña corner Ramon Chavez St., Cogon, 9000 Cagayan
de Oro City
87 Cagayan de Oro - R.N. Pelaez Georgetown Cyber Mall, Rodolfo N. Pelaez Blvd., Kauswagan,
Blvd. Cagayan de Oro City
88 Cagayan De Oro - Xavier Library Annex Bldg. Corrales Avenue, Cagayan de Oro City
89 Cainta Junction Hipolito Bldg., Ortigas Avenue Extension Cainta Junction, Cainta,
Rizal
90 Cainta - A. Bonifacio Ave. Ledor Commercial Center, A. Bonifacio Avenue corner Samonte St.,
Brgy. San Juan, Cainta, Rizal
91 Cainta – Felix Avenue Felix Avenue near Cainta Junction, Brgy. Sto. Domingo, Cainta,
Rizal
92 Cainta – Puregold Puregold Cainta Junction, A. Bonifacio Ave., Brgy. Sto. Domingo,
Cainta, Rizal
93 Calamba – CityMall National Highway, Brgy. Lecheria, Calamba City, Laguna

SEC FORM 17-A 60

 No. BRANCH ADDRESS

94 Calamba – Halang National D’Verde Commercial Bldg., National Highway, Brgy. Halang,
Highway Calamba City, Laguna
95 Calamba - Paseo Uno G/F Paseo Uno de Calamba, National Highway, Brgy. Paciano,
Calamba City, Laguna
96 Mindoro – Puregold Calapan Puregold Calapan Mindoro, J.P. Rizal St., Brgy Camilmil, Calapan
City, Oriental Mindoro
97 Camarines Norte - Daet J. Lukban St. corner Moreno St., Poblacion, Daet, Camarines Norte
98 Camarines Sur - Calabanga Galleria de Calabanga, Lot 2, Provincial Road, Brgy. San Francisco,
Calabanga, Camarines Sur
99 Camarines Sur - Nabua Lot 374 CZA Bldg., National Rd. near cor. Maganda St., Brgy. San
Antonio, Poblacion, Nabua, Camarines Sur
100 Camarines Sur - Pili Santiago, Pili, Camarines Sur
101 Canlubang iMall Don Bosco Ave. corner Silangan Industrial Park Road, Brgy.
Canlubang, Calamba City, Laguna
102 Catanduanes - Virac Rizal Avenue, Brgy. San Pedro, Virac, Catanduanes
103 Cavite - Dasmariñas Central Mall Central Mall Dasmariñas, Emilio Aguinaldo Highway cor. Salitran St.,
Dasmariñas, Cavite
104 Cavite - Dasmariñas Salawag EVY Commercial Bldg., Molino-Paliparan Rd., Brgy. Salawag,
Dasmariñas, Cavite
105 Cavite - General Trias Manggahan New Hall Commercial Center, Governor’s Drive corner Crisanto
delos Santos Ave., Brgy, Manggahan, General Trias, Cavite
106 Cavite - Gen. Trias San Francisco Lot 1, along Arnaldo Highway, Brookside Lane, Brgy. San Francisco,
Gen. Trias, Cavite
107 Cavite - Imus Aguinaldo Highway G/F DCR Bldg., Aguinaldo Highway, 4103 Imus, Cavite
108 Cavite - Imus Nueno Avenue 358 Exodus Bldg., Nueno Avenue, Imus, Cavite
109 Cavite - Puregold Buhay na Tubig G/F Commercial Unit Nos. 4, 5 and 3A, Puregold Buhay na Tubig,
Buhay na Tubig, Imus, Cavite
110 Cavite – Puregold GMA Ground Floor and Second Floor, Puregold Building, Brgy. San
Gabriel, Governor’s Drive, GMA, Cavite
111 Cavite - Puregold Noveleta Puregold Noveleta Cavite, National Road, Brgy. Magdiwang,
Noveleta, Cavite
112 Cavite - Puregold Tanza G/F Puregold Tanza, Provincial Road, Tanza, Cavite
113 Cavite - Silang Aguinaldo Highway LS 42-43: CS-03 Premier Plaza, Emilio Aguinaldo Highway, Brgy.
Lucsuhin, Silang, Cavite
114 Cavite - Trece Martires L Paseo Arcade, near corner Indang-Trece Road, Trece Martires
City, Cavite
115 Cavite Imus – The District Ground Floor Unit 109 Ayala Malls The District Imus, Aguinaldo
Highway corner Daang Hari Road, Brgy. Anabu II-D, Imus City,
Cavite
116 Cebu IT Park – TGU Tower G/F TGU Tower, Salinas Drive corner J. M. Del Mar St., Asiatown IT
Park, Apas, Cebu City

SEC FORM 17-A 61

 No. BRANCH ADDRESS

117 Cebu - Ayala Business Park Cebu Towers, Mindanao corner Bohol Avenue, Cebu Business Park,
Cebu City
118 Cebu - Ayala Mall Stall R106 Ground Level, ACC Corporate Center, Ayala Center
Cebu, Cebu Business Park, Cebu City
119 Cebu - Banilad Gov. M. Cuenco Avenue, Banilad, Cebu City
120 Cebu - Bogo P. Rodriguez corner San Vicente St., 6010 Bogo, Cebu City
121 Cebu - Capitol Osmeña Blvd. corner Ma. Cristina St., 6000 Cebu City, Cebu
122 Cebu - CityMall Danao T 10-12 CityMall Danao, Olivar Sr. Extension corner F. Ralota St.,
Brgy. Poblacion, Danao City, Cebu
123 Cebu - Colon 279 Colon St., Brgy. Kalubihan, Cebu City
124 Cebu - Consolacion G/F Annex Bldg. Fooda Saversmart, Consolacion, Cebu

125 Cebu - Elizabeth Mall G/F Elizabeth Mall, Leon Kilat corner South Expressway, Cebu City
126 Cebu - Escario Escario St., Cebu City
127 Cebu - F. Cabahug Unit 10 Northwood Square, F. Cabahug St., Brgy. Kasambagan,
Panagdait, Cebu City
128 Cebu - F. Ramos 134 Borromeo Bldg., F. Ramos corner Arlington Pond, Cebu City
6000
129 Cebu - Gaisano Minglanilla UG/F Gaisano Grand Mall Minglanilla, Poblacion, Minglanilla, Cebu
City
130 Cebu - Guadalupe R. Duterte corner V. Rama St., Guadalupe, Cebu City
131 Cebu - Insular Life Business G/F Insular Life Cebu Business Centre, Mindanao Avenue corner
Centre Biliran Road, Cebu Business Park, Cebu City
132 Cebu - J. Mall Unit 1 & 2 LGF, J Centre Mall, A.S. Fortuna St., Bakilid, Mandaue
City 6014
133 Cebu - Legaspi Legaspi corner Zamora St. Cebu City
134 Cebu - Magallanes Plaridel St. corner Magallanes St. Cebu City

135 Cebu - Mambaling Grand Orchard Commercial Bldg., C. Padilla St., Mambaling, Cebu
City
136 Cebu - Osmeña JR Martinez Bldg., Osmena Blvd., Sta. Cruz, Cebu City
137 Cebu - Parkmall Unit 29 - 31 Parkmall, No. 168 Ouano Avenue, Mandaue
Reclamation Road, Mandaue City, Cebu
138 Cebu - Philam Life Center Units 6 & 7, Philam Life Center, Cardinal Rosales Avenue corner
Samar Loop, Cebu Business Park, Brgy. Luz, Cebu City
139 Cebu - Plaridel 21 Dy Bldg., Plaridel St., Cebu City
140 Cebu - Tabo-an T. Abella St., San Nicolas Central 6000 Cebu City
141 Cebu IT Park – HM Tower Units G01 and G02 HM Tower, Abad corner Geonzon St., Cebu IT
Park, Brgy. Apas, Cebu City
142 Cebu Mandaue – A. C. Cortes Units 1-4 Ibabao Square, A. Cortes Avenue, Brgy. Ibabao, Mandaue
City, Cebu

SEC FORM 17-A 62

 No. BRANCH ADDRESS

143 Cebu Mandaue - A. S. Fortuna RKD Bldg., 867 A.S. Fortuna St., Brgy. Banilad, Mandaue City, Cebu
144 Cebu Mandaue - North Road G/F North Road Plaza, National Highway, Labogon, Mandaue City,
Cebu
145 Cebu Mandaue - Subangdaku La Fuerza Compound, Subangdaku, Mandaue City, Cebu

146 Cebu Mandaue - U.N. Avenue The North Park, U.N. Avenue, Brgy. Alang-Alang, Mandaue City,
Cebu
147 Cebu Tabunok PBS Bldg., 2668 National Highway Tabunok Talisay, Cebu City
148 Clark – Philexcel Business Park Philexcel Business Park, Manuel A. Roxas Highway, Clark Freeport
Zone, Pampanga
149 Clark SEZ - Centennial Facility No. N5315 along Centennial Road, Clark Special Economic
Zone, Clarkfield, Pampanga
150 Cotabato - CityMall Unit 157 CityMall Cotabato, Gov. Guituerrez Avenue, Brgy. Rosary
Heights 7, Cotabato City
151 Cotabato - Midsayap Jaycee St., 9410 Midsayap, North Cotabato

152 Cotabato – S. K. Pendatun G/F Insular Life Bldg., Salipada K. Pendatun Ave., Brgy. Poblacion
5, Cotabato City, Maguindanao
153 Dagupan - Mayombo G/F BHF Family Plaza, MacArthur Highway, Brgy. Mayombo,
Dagupan City, Pangasinan
154 Dagupan - Perez 386 Perez Blvd., Dagupan City
155 Dagupan - Tapuac Unit 8,9,10 Mother Goose Play School Bldg., MacArthur Highway,
Tapuac District, Dagupan City, Pangasinan
156 Davao Magsaysay Ramon Magsaysay Avenue, Davao City
157 Davao - Agdao Lapu- Lapu St., 8000 Agdao, Davao City
158 Davao - Bangoy R. Magsaysay Avenue corner C. Bangoy St., 8000 Davao City
159 Davao - Buhangin KSS Bldg., Buhangin Road cor. Olive St., Brgy. Buhangin, Davao
City
160 Davao – Gaisano Grand Citygate G/F Gaisano Grand Citygate Mall, Cabantian corner Tigatto Roads,
Mall Brgy. Buhangin, Davao City 8000, Davao Del Sur
161 Davao - Calinan WTKC Realty Bldg., Davao-Bukidnon National Highway, Brgy.
Calinan, Davao City
162 Davao - Felcris Centrale Felcris Centrale, Quimpo Boulevard, Brgy. Bucana, Davao City
163 Davao - Lanang Insular Village SJRDC Bldg., Insular Village 1 Commercial Area, Lanang, Davao
City
164 Davao - Lizada Ramon Magsaysay Avenue corner Lizada St., 8000 Davao City,
Davao del Sur
165 Davao – Monteverde Gov. Sales G/F Felcris Supermarket, Inc. Building, Gov. Sales Street, Brgy. 27 –
C, Davao City, Davao Del Sur
166 Davao - Narra Tomas Monteverde Avenue corner Narra St., Davao City

167 Davao - Panabo National Highway, Brgy. Sto. Niño, Panabo City, Davao del Norte

SEC FORM 17-A 63

 No. BRANCH ADDRESS

168 Davao - Quirino Avenue Nicolas 1 Bldg., Quirino Avenue, 8000 Davao City

169 Davao - Rizal 365 Farmar Building, Rizal St., Brgy. 3-A Poblacion, Davao City

170 Davao - Sta. Ana Monteverde corner F. Bangoy St., 8000 Davao City, Davao del Sur
171 Davao - Sta. Ana Gempesaw Sta. Ana Avenue corner Gempesaw St., Brgy. 015, Davao City
172 Davao - Toril Gaisano Grand Mall GFS 01-02, Gaisano Grand Toril, National Highway corner Saavedra
St., Brgy. Lizada, Toril, Davao City
173 Davao - Wood Lane Diversion Unit 1B G/F Bldg. 2, The Shoppes at Wood Lane, Diversion Road
Road (Carlos P. Garcia Highway), Brgy. Ma-a, Davao City, Davao del Sur
174 Davao Digos - San Jose G/F Ladera Bldg., Rizal Avenue, Brgy. Zone III, Digos City, Davao
Del Sur
175 Davao Tagum - National Highway BIBU Square, Liwayway Commercial Area, National Highway, Brgy.
Magugpo East, Tagum City, Davao del Norte
176 Dipolog – Rizal Avenue Rizal Avenue near corner Gonzales St., Brgy. Central, Dipolog City
177 Dumaguete – CityMall Unit 03 CityMall Dumaguete, North National Highway, Brgy. Daro,
Dumaguete City
178 Gaisano Grand Mall - Cotabato G/F Gaisano Grand Mall Kidapawan, Quezon Blvd., Purok 1, Brgy.
Kidapawan Lanao, Kidapawan City, North Cotabato
179 General Santos Santiago Blvd. corner J.P. Laurel St., General Santos City
180 General Santos - National Highway Tandem Center, Pasiliao Subdivision, National Highway, Brgy. City
Heights,
General Santos City, South Cotabato
181 General Santos – Robinsons Place Level 1, Robinsons Place General Santos, J. Catolico Sr. Avenue,
Purok 4 Brgy. Lagao, General Santos City
182 Iligan – Andres Bonifacio Avenue Unit 101, Solana District, Andres Bonifacio Avenue, Brgy. San
Miguel, Iligan City, Lanao Del Norte
183 Iligan - Quezon Avenue Quezon Avenue, 9200 Iligan City, Lanao Del Norte
184 Ilocos Norte - Batac Aoigan Bldg., Washington St., Batac 2906, Ilocos Norte
185 Ilocos Sur - Cabugao MacArthur Highway, Brgy. Baclig, Cabugao, Ilocos Sur
186 Ilocos Sur - Candon National Highway corner Abaya St., 2710 Candon, Ilocos Sur
187 Ilocos Sur – Narvacan National Road, Brgy. Sta Lucia, Narvacan, Ilocos Sur

188 Iloilo - Arevalo Calle M.L. Quezon corner Gen. Yulo Drive, Brgy. Quezon, Arevalo,
Iloilo City
189 Iloilo - CityMall Pavia G/F, Units 01 & 02, Citymall Pavia, Iloilo R3 Road corner C1 Road,
Brgy. Ungka, Pavia, Iloilo
190 Iloilo - General Luna 48 LPHTP Bldg., General Luna St., Iloilo City, 5000
191 Iloilo - Jaro NB Bldg., Lopez Jaena St., Jaro, Iloilo City
192 Iloilo - La Paz G/F INJAP Bldg., corner Luna St. & Huervana St., La Paz, Iloilo City

SEC FORM 17-A 64

 No. BRANCH ADDRESS

193 Iloilo - Ledesma G/F Esther Bldg., Ledesma St., Iloilo City

194 Iloilo - Passi G/F Fronthub Ventures Bldg., Simeon Aguilar St. (National Road)
corner Commonwealth Drive, Brgy Ilawod, Passi City, Iloilo
195 Iloilo - Quezon St. Lots 3 & 5 Quezon St., Iloilo City
196 Iloilo - Tabuc Suba Roger's Bldg., McArthur Highway, Tabuc Suba, Iloilo City

197 Iloilo Jaro - CityMall Tagbak UO2 CityMall Tagbak Jaro Iloilo, MacArthur Highway, Brgy. Tagbak,
Jaro, Iloilo City
198 Iriga City Iriga Plaza Hotel, Msgr. Lanuza St., San Francisco, Iriga City,
Camarines Sur
199 Iriga City – Puregold G/F Commercial Unit 1, Puregold Iriga City, Highway 1, San Roque,
Iriga City 4431
200 Isabela - Ilagan Along Maharlika Highway, Calamagui 2nd, Ilagan, Isabela
201 Isabela - Primark Cauayan Primark Town Center, Maharlika Highway corner Cortes St., Brgy.
San Fermin, Cauayan City, Isabela
202 Isabela - Primark Cordon G04, G/F, Primark Cordon Isabela, Pan Philippine Highway, Brgy.
Roxas, Cordon, Isabela
203 Isabela - Tumauini National Highway, Brgy. San Pedro, Tumauini, Isabela

204 Isabela Cabagan - Xentro Mall G/F Xentro Mall, Brgy. Ugad, Cabagan, Isabela

205 Isabela Santiago - Xentro Mall G/F Xentro Mall corner National Highway & 4 Lanes Rd., Brgy.
Villasis, Santiago City, Isabela
206 Kawit – Centennial Road Unit 102, V Central Mall, Centennial Road, Brgy. Magdalo Putol,
Kawit, Cavite
207 La Union - Agoo Along National Highway, Brgy. San Nicolas, Agoo, La Union

208 La Union San Fernando - Manna G/F Manna Mall, National Highway corner Diversion Road, Brgy.
Mall Pagdaraoan, San Fernando City, La Union
209 La Union San Fernando - Rizal Rizal Avenue corner Ortega St., San Fernando, La Union
Avenue
210 Laguna - Alaminos KCD Commercial Complex, National Highway, Brgy. ll Poblacion,
Alaminos, Laguna
211 Laguna - Cabuyao G/F Lim-Bell Business Center, J.P. Rizal St., Cabuyao, Laguna
212 Laguna - Carmelray I Administration Bldg., Carmelray Industrial Park I, Carmeltown,
Canlubang, Calamba, Laguna
213 Laguna - Carmelray II Administration Bldg., Carmelray Industrial Park II, Km. 54 National
Highway, Brgy. Milagrosa, Calamba City
214 Laguna - Pagsanjan JP Rizal St. corner F. De San Juan St., Brgy. Dos, Poblacion,
Pagsanjan, Laguna
215 Laguna - Sta. Cruz Along Regidor St., Sta. Cruz, Laguna

SEC FORM 17-A 65

 No. BRANCH ADDRESS

216 Laguna - Sta. Cruz National G/F E Home Town Center, National Highway, Brgy. Pagsawitan,
Highway Sta. Cruz, Laguna
217 Laguna - Technopark G/F Laguna Technopark, Admin. Bldg. 1, North Main Avenue,
Laguna Technopark Biñan, Laguna
218 Laoag - Castro Pichay Bldg., J.P. Rizal corner A. Castro St., Laoag City

219 Legazpi City - Albay District G/F & Mezzanine Floor, ZPC Bldg., Rizal St., Brgy. Baño, Old
Albay, Legazpi City, Albay
220 Legazpi City - Rizal St. Rizal corner Gov. Imperial St., Legaspi City
221 Legazpi City - Rotonda Rizal St., 4500 Legaspi City, Albay
222 Legazpi City - Tahao AGR Building, Alternate Road, Tahao, Legazpi City
223 Leyte - Ormoc Gaisano G/F Gaisano Capital Ormoc Riverside, Brgy. Alegria, Ormoc City,
Leyte
224 Lipa - Ayala Highway Casa Esparanza Bldg., Pres. JP Laurel Highway, Brgy. Mataas na
lupa, Lipa City
225 Lipa – High 5 Square High 5 Square, Ayala Highway, Mataas na Lupa, Lipa City,
Batangas
226 Lipa – J. P. Laurel J.P. Laurel St., Brgy Tambo, Lipa City, Batangas
227 Lipa – Puregold G/F Puregold Lipa, Gen. Luna St., cor. D.P.Laygo St. & H.La Torre
St., Brgy. 10, Lipa City, Batangas
228 Los Baños Olivarez Plaza Cinema & Supermarket Complex, along National
Highway, Brgy. Batong Malake, Los Baños
229 Lucena - Enriquez Enriquez corner Evangelista St., Lucena City
230 Lucena - Gulang-Gulang 505 Quezon Avenue Extension, Barangay Gulang-gulang, Lucena
City
231 Lucena - Iyam Space 4-6, Kester Bldg., Maharlika Highway corner Love St.,
RosarioVillage Subd., Brgy. Ilayang Iyam, Lucena City
232 Lucena - Quezon Avenue Quezon Avenue corner Profugo St., Lucena City, Quezon
233 Lucena - Tagarao M.L. Tagarao St., Brgy. 5, Lucena City

234 Mactan - EPZA 2 Unit 204 NGA Bldg. 2, Pueblo Verde MEZ II, Basak, Lapu Lapu City

235 Mactan – Lapu-lapu GMC Unit 9, The Arcade, ML Quezon Highway, Pajo, Lapu-lapu City
236 Mactan – Pajo National Highway Hofuna Cresente Building, 2783 ML Quezon National Highway,
Sangi, Pajo, Lapu-lapu City
237 Malolos - Crossing G/F Margen Bldg., MacArthur Highway, Sumapang Matanda,
Malolos City, Bulacan
238 Marcos - Sumulong Highway Kingsville Commercial Arcade, Marcos Highway, 1870 Antipolo,
Rizal
239 Marcos Highway Town & Country Commercial Arcade, Marcos Highway corner Narra
St., Cainta, Rizal

SEC FORM 17-A 66

 No. BRANCH ADDRESS

240 Marcos Highway – Feliz Mall G/F Space No. 171, Ayala Malls Feliz, Marcos Highway, Brgy. Dela
Paz, Pasig City
241 Marcos Highway - Vermont Park Park Place Building, Marcos Highway corner Vermont Park, Brgy
Mayamot, Antipolo City
242 Marilao - MacArthur Highway Unit 1-3 Cecilia Commercial Complex, Abangan Norte, MacArthur
Highway, 3019 Marilao, Bulacan
243 Meycauayan - Malhacan Supima Square Commercial Complex, Lukytex Compound,
Malhacan Road, Meycauayan, Bulacan
244 Mindoro – Calapan J.P. Rizal St., 5200 Calapan, Oriental Mindoro
245 Mindoro – CityMall Calapan T-3, T-4 & T-5 CityMall – Calapan, A. Bonifacio corner Roxas Drive,
Brgy. Ilaya, Calapan City, Oriental Mindoro
246 Misamis Occ. - Oroquieta Mayor A. Enerio St., Oroquieta City, 7207 Misamis Occidental
247 Misamis Oriental - Gingoog National Highway, Gingoog City, Misamis Oriental

248 Montalban – Puregold G/F Units 3-5, Rodriguez Highway, Brgy. Rosario, Montalban, Rizal
249 Naga - Concepcion Grande G/F Commercial Bldg., Maharlika Highway, Brgy.Concepcion
Grande, Naga City
250 Naga - Diversion Road Building 5, Stalls A and B, M Plaza Roxas Avenue, Diversion Road,
Concepcion Pequeña, Naga City
251 Naga - Elias Angeles Chua O. Co Bldg., Elias Angeles St., Brgy. San Francisco, Naga
City, Camarines Sur
252 Naga - General Luna Nos. 80-82 General Luna St., Dinaga, Naga City

253 Naga - Magsaysay Avenue One Magsaysay Bldg., Magsaysay Avenue corner Reno St., Brgy.
Concepcion Pequeña, Naga City
254 Naga - Panganiban Drive G/F DECA Corporate Center, Panganiban Drive, Brgy Tinago, Naga
City, Camarines Sur
255 Naga - San Francisco Barangay San Francisco, Peñafrancia Avenue, Naga City

256 Negros Occ - Bago Araneta Avenue cor. Gen. Luna St., Bago City, Negros Occidental
6101
257 Negros Occ - Binalbagan Biscom Compound, Binalbagan, Negros Occidental
258 Negros Occ – CityMall Kabankalan Unit 07 & 08, CityMall – Kabankalan, Justice Perez Highway corner
Noceco Road, Brgy. Talubangi, Kabankalan City, Negros Occidental
259 Negros Occ - Hinigaran Aguinaldo corner Rizal St., Hinigaran, 6106 Negros Occidental
260 Negros Occ - La Carlota Yunque St. corner Gurrea St., Brgy. 1, La Carlota City, Negros
Occidental
261 Negros Occ - San Carlos S. Carmona St. corner Rizal St., San Carlos City, Negros Occidental
262 Negros Occ - Talisay Paseo Mabini St., Brgy. Poblacion, Zone 9, Talisay City, Negros
Occidental
263 Negros Occ - Victorias Osmeña Avenue, Victorias City, Negros Occidental, 6119

SEC FORM 17-A 67

 No. BRANCH ADDRESS

264 Negros Oriental - Bayawan G/F NVF Bldg., 441 National Highway, Brgy. Poblacion, Negros
Oriental
265 Nueva Ecija - Gapan Maharlika Units 3-7, Maharlika Highway corner Sampaguita St., Brgy.
Highway Bayanihan,Gapan, Nueva Ecija
266 Nueva Ecija – Primark Gapan Primark Gapan, Maharlika Highway corner Abad Santos Avenue,
Brgy. San Vicente, Gapan City, Nueva Ecija
267 Nueva Ecija - San Jose Maharlika Road, 3121 San Jose City, Nueva Ecija
268 Nueva Ecija - Sta. Rosa Along Maharlika Highway, Sta. Rosa, Nueva Ecija
269 Nueva Ecija - Talavera G/F RDL Square 1 Bldg., Maharlika Highway, Brgy. Marcos District,
Poblacion, Talavera, Nueva Ecija
270 Nueva Ecija – CityMall Sta. Rosa T-23 & 24, CityMall-Sta. Rosa, Maharlika Highway, Brgy. Rizal, Sta.
Rosa City, Nueva Ecija
271 Nueva Ecija – Primark Cabiao G/F Primark Cabiao, Jose Abad Santos Avenue, Brgy. San Roque,
Cabiao, Nueva Ecija
272 Nueva Ecija – Zaragoza Along Tarlac-Sta. Rosa Road, Brgy. Del Pilar East, Zaragoza, Nueva
Ecija
273 Nueva Vizcaya - Solano National Highway, Solano, Nueva Vizcaya

274 Pampanga – Guagua Town Center GTC Building, Lot 2, Olongapo-Gapan & Provincial Road, Brgy. San
Matias, Guagua, Pampanga
275 Pampanga - Lubao Olongapo-Gapan Road, Sta. Cruz, Lubao, Pampanga

276 Pampanga - Magalang Pablo Luciano Avenue, Brgy. San Pedro 1, Poblacion, Magalang,
Pampanga
277 Pampanga – Puregold Dau G/F & 2/F Puregold Dau, Mac Arthur Highway, Brgy. Dau,
Mabalacat, Pampanga
278 Pampanga San Fernando - MacArthur Highway, Dolores 2000 City of San Fernando
Dolores (Pampanga)
279 Pampanga San Fernando - G/F Doña Isa Fel Bldg. II, MacArthur Highway, Dolores, San
MacArthur Highway Fernando City, Pampanga
280 Pampanga San Fernando - Palm Bldg., MacArthur Highway, Sindalan, San Fernando City,
Sindalan Pampanga
281 Pampanga San Fernando – San Kingspire Business Center, Mac Arthur Highway, Brgy. San Isidro,
Isidro City of San Fernando, Pampanga
282 Pangasinan - Alaminos Marcos Avenue, Palamis 2404 Alaminos, Pangasinan
283 Pangasinan - Calasiao GF Señor Tesoro Academy Bldg., San Miguel, Calasiao,
Pangasinan
284 Pangasinan - Carmen McArthur Highway, Carmen East 2441 Rosales, Pangasinan
285 Pangasinan - Mangaldan Along Rizal Avenue, Poblacion, Mangaldan, Pangasinan
286 Pangasinan - San Carlos Palaris St., 2420 San Carlos City, Pangasinan
287 Pangasinan - Tayug Along Quezon Blvd., Poblacion Tayug, Pangasinan

SEC FORM 17-A 68

 No. BRANCH ADDRESS

288 Pangasinan – Bayambang 206 Rizal Avenue, Brgy. Poblacion, Bayambang, Pangasinan

289 Pangasinan – Malasiqui ARLU Bldg., Magsaysay St., Brgy Poblacion, Malasiqui, Pangasinan

290 Pangasinan San Carlos – Magic G/F, Magic Mall, Roxas Blvd. Corner Zamora St., Brgy. Roxas Blvd.,
Mall San Carlos City, Pangasinan 2420
291 Puerto Princesa – San Pedro G/F Palawan Uno Hotel, National Highway, Brgy. San Pedro, Puerto
Princesa City, Palawan
292 Quezon – CityMall Tiaong Units T 3-5 CityMall- Tiaong, Maharlika Highway, Brgy. Lalig,
Tiaong, Quezon
293 Quezon – Gumaca JT Bldg., Maharlika Highway, Brgy. Peñafrancia, Gumaca, Quezon

294 Rizal - Montalban G/F Montalban Town Center, Rodriguez Highway corner Lardizabal
St., Brgy. San Jose, Rodriguez, Rizal
295 Rizal – Primark Cainta G05-G06, Primark Cainta Rizal, Ortigas Avenue Extension cor. Don
Celso Tuazon Ave., Brgy. San Juan, Cainta, Rizal
296 Rizal – Primark Teresa G03, Primark Teresa Rizal, R. Magsaysay Ave., Brgy. San Gabriel,
Teresa, Rizal
297 Rizal - Tanay Tanay Town Center, Sampaloc Road corner F.T. Catapusan St.,
Plaza Aldea, Tanay, Rizal
298 Rizal – Binangonan Lexar Building, Manila East Road, Brgy. Calumpang, Binangonan,
Rizal
299 Rizal – Morong G/F & 2/F Morong Centerpoint, No. 58 T. Claudio St., Brgy. San
Juan, Morong Rizal
300 Rizal – San Mateo G/F & Mezzanine Flr., Doña Isabel Bldg., No. 29 Gen. Luna St.,
Brgy. Guitnang Bayan 1, San Mateo, Rizal
301 Robinsons – Dumaguete Robinsons Dumaguete, Dumaguete Business South Road,
Calingdagan, Dumaguete City
302 Robinsons Place - Lipa Level 1, Space L1- 177, Robinsons Place-Lipa, Lipa Highway, Brgy.
Mataas na Lupa, Lipa City, Batangas
303 Robinsons Place - San Nicolas Unit 1-00144, Robinsons Place Ilocos, Brgy. 1 San Francisco, San
Nicolas, Ilocos Norte
304 Robinsons Place – General Trias Level 1 130-133, Robinsons Place General Trias, Antero Soriano
Highway, EPZA, Bacao Diversion Road, Brgy. Tejero, General Trias,
Cavite
305 Robinsons Place – Tuguegarao Level 1 Tenant 1085-1086, Robinsons Place Tuguegarao, Maharlika
Highway, Brgy. Tanza, Tuguegarao City, Cagayan
306 Robinsons Townville – G/F Unit RA1, Robinsons Townville, Brgy. H. Concepsion, Km. 111,
Cabanatuan Maharlika Highway, Cabanatuan City
307 Roxas – CityMall CityMall-Roxas, Arnaldo Boulevard, Brgy. Baybay, Roxas City,
Capiz
308 Roxas – Pueblo De Panay G/F Hotel Veronica Bldg., Immaculate Heart of Mary Ave., Pueblo de
Panay, Brgy. Lawa-an, Roxas City

SEC FORM 17-A 69

 No. BRANCH ADDRESS

309 Samar – Calbayog Magsaysay Blvd. Corner Burgos St., Brgy. East Awang, Calbayog
City, Samar
310 Samar - Catbalogan Del Rosario St. corner Allen Avenue, 6700 Catbalogan, Samar
311 Samar – Catarman E.B. Moore St. corner Anunciacion St., Brgy Lapu-Lapu, Catarman,
Northern Samar
312 San Pablo - Maharlika Highway G/F BienPaz Arcade, Maharlika Highway Junction, San Rafael, San
Pablo City
313 San Pablo - Paulino M. Paulino St., San Pablo City

314 San Pedro National Highway Junction & Mabini St., Brgy. Nueva, San Pedro,
Laguna
315 San Pedro – Robinsons Galleria Level 2 Robinsons Galleria South, National Highway, Brgy. Nueva,
South San Pedro City
316 San Pedro - Pacita GF M. Allen Bldg., Km 31, Old National, National Highway, San
Pedro, Laguna
317 Savemore Market – EPZA G/F Savemore Market EPZA General Trias, Diversion Road, EPZA,
Brgy. Bacao Dos, General Trias, Cavite
318 SM CDO Downtown Premier Location Code 112-114, G/F, SM CDO Downtown Premier, C.M.
Recto corner Osmeña Sts., Brgy. Lapasan, Cagayan de Oro City
319 SM Center Angono UG/F SM Center Angono, Manila East Road, Brgy. San Isidro,
Angono, Rizal
320 SM Center Dagupan Location Code 115, G/F, SM Center Dagupan, Herrero St., Brgy.
Herrero- Perez, Dagupan City, Pangasinan
321 SM Center Imus G/F, SM Center Imus (LC 163-164a, 173-174a), NIA and Alapan
Road, Brgy, Bucandala, Imus, Cavite
322 SM Center Lemery Location Code 127-130, G/F SM Center Lemery, Illustre Avenue
corner Calle P. Gomez St., Brgy. District IV, Lemery, Batangas
323 SM Center Ormoc G/F SM Center Ormoc (Location Code 123-125), Real St., Brgy.
District 14, Ormoc City, Leyte
324 SM Center Pulilan Location Code 140-142, G/F SM Center Pulilan, Plaridel-Pulilan
Diversion Road, Brgy. Sto. Cristo, Pulilan, Bulacan
325 SM Center Tuguegarao Downtown Location Code 117-119, G/F & 246B-247B & 247A, 2/F, SM Center
Tuguegarao Downtown, Luna corner Mabini Sts., Brgy. Ugac,
Tuguegarao City
326 SM Cherry Antipolo UGF 122, 123 & 124, SM Cherry Foodarama Antipolo, Marcos
Highway, Brgy. Mayamot, Antipolo City
327 SM City Bacolod GF South Wing Bldg. SM City Bacolod, Poblacion Reclamation
Area, Bacolod City
328 SM City Bacolod North G/F SM City Bacolod North Wing Bldg., Brgy. 12, Poblacion,
Reclamation Area, Bacolod City
329 SM City Bacoor UG/F SM City Bacoor Gen. Aguinaldo Highway corner Tirona
Highway Bacoor, Cavite

SEC FORM 17-A 70

 No. BRANCH ADDRESS

330 SM City Baguio Location Code 176-179, Upper Ground Floor, SM City Baguio,
Luneta Hill, Upper Session Road, Brgy. Session Road-Governor
Pack Road, Baguio City 2600
331 SM City Baliwag G/F SM City Baliwag (LC EX 101-102,105a-107a), DRT Highway,
Brgy. Pagala, Baliwag, Bulacan
332 SM City Batangas GF SM City Batangas, Brgy. Pallocan West, Batangas City
333 SM City Butuan Location Code 178-181 A, Ground Floor, SM City Butuan, Jose C.
Aquino Avenue corner Jose Rosales Avenue, Brgy. Lapu Lapu,
Butuan City
334 SM City Cabanatuan UG/F SM City Cabanatuan, Maharlika Highway, Brgy. Hermogenes
C. Concepcion Sr., Cabanatuan City, Nueva Ecija
335 SM City Cagayan De Oro G/F SM City Cagayan de Oro, Pueblo de Oro Business Park, Upper
Canituan, Cagayan de Oro, Misamis Oriental
336 SM City Calamba G/F SM City Calamba, National Highway, Brgy. Real, Calamba City,
Laguna
337 SM City Cauayan G/F & 2/F SM City Cauayan, Maharlika Highway, Brgy. San Fermin,
Cauayan, Isabela
338 SM City Cebu SM City Cebu North Reclamation Area, Cebu City

339 SM City Cebu B UG/F The Northwing - SM City Cebu, North Reclamation Area, San
Jose dela Montaña corner M.J. Cuenco Avenue, Cebu City
340 SM City Clark A G/F SM City Clark, Clark Field, Pampanga
341 SM City Clark B G/F SM City Clark BPO Tower 1&2 (LC B1-101-107), Brgy.
Malabanias, Pampanga
342 SM City Consolacion Cebu G/F SM City Consolacion Cebu, Cebu North Road, Brgy. Lamac,
Consolacion, Cebu
343 SM City Daet G/F, SM City Daet, Purok 1, Brgy. Lag-on, Vinzons Avenue, Daet,
Camarines Norte
344 SM City Dasmariñas A Upper Ground Floor, SM City Dasmarinas , Barrio Pala-Pala,
Dasmarinas, Cavite
345 SM City Dasmariñas B LGF SM City Dasmarinas, Governor's Drive, Brgy. Pala-Pala,
Dasmariñas, Cavite
346 SM City Davao UG/F SM City Davao Brgy. Matina, Davao City

347 SM City Davao Annex GF/MF Annex Bldg., SM City Davao, Brgy. Matina, Davao City
348 SM City General Santos G/F SM City General Santos, Santiago Boulevard corner San Miguel
St., General Santos City
349 SM City Iloilo UG/F SM City Iloilo, Benigno Aquino Avenue, Mandurriao, Iloilo City
350 SM City Iloilo B UGF SM City Iloilo Expansion Bldg. (LC1053A-1053F), Benigno
Aquino Avenue, Brgy. Bolilao, Mandurriao, Iloilo City 5000
351 SM City Legazpi G/F SM City Legazpi (Location Code 1045-1047), Imelda Roces
Avenue, Zone 9, Brgy. 37 Bitano, Legazpi City, Albay

SEC FORM 17-A 71

 No. BRANCH ADDRESS

352 SM City Lipa G/F SM City Lipa, Ayala Highway, Lipa City, Batangas

353 SM City Lucena G/F SM City Lucena (LC - 177- 178) Pagbilao National Road,
Lucena City
354 SM City Marilao G/F SM City Marilao, MacArthur Highway, Marilao, Bulacan

355 SM City Masinag G/F SM City Masinag, Marcos Highway, Mayamot, Antipolo City
356 SM City Mindpro Ground Floor, SM City Mindpro, La Purisima Street, Brgy. Zone III,
Zamboanga City
357 SM City Molino G/F SM City Molino, Brgy. Molino 4, Bacoor, Cavite

358 SM City Naga G/F SM City Naga, Brgy. Triangulo, Central Business District II,
Naga City
359 SM City Olongapo G/F SM City Olongapo (Location Code EXP 105-106), Magsaysay
Drive corner Gordon Ave., Pag-asa, Olongapo City, Zambales
360 SM City Olongapo Central Location Code 125-129, G/F, SM City Olongapo Central, Rizal
Avenue, Brgy. East Tapinac, Olongapo City
361 SM City Pampanga A G/F SM City Pampanga, San Fernando, Pampanga

362 SM City Pampanga B G/F SM City Pampanga Annex Bldg. 4, San Fernando, Pampanga
363 SM City Puerto Princesa LG/F SM City Puerto Princesa, Malvar corner Lacao Sts., Brgy. San
Miguel, Puerto Princesa City, Palawan
364 SM City Rosales SM City Rosales, Carmen East, Rosales, Pangasinan

365 SM City Rosario G/F SM City Rosario, General Trias Drive, Brgy. Tejero, Rosario,
Cavite
366 SM City San Fernando G/F SM City San Fernando, V. Tiomico St., Brgy. Poblacion, San
Fernando, Pampanga
367 SM City San Jose Del Monte SM City San Jose Del Monte, Quirino Highway, Brgy. Tungkong
Mangga, San Jose Del Monte City, Bulacan
368 SM City San Mateo SM City San Mateo, General Luna, Brgy. Ampid 1, San Mateo,
Rizal
369 SM City San Pablo G/F SM City San Pablo, National Highway, Barangay San Rafael,
San Pablo City, Laguna
370 SM City Sta. Rosa G/F SM City Sta. Rosa, Barrio Tagapo, Sta. Rosa, Laguna

371 SM City Tarlac UG & LGF, SM City Tarlac, MacArthur Highway, San Roque, Tarlac
City
372 SM City Taytay G/F Bldg. A, SM City Taytay, Manila East Road, Brgy. Dolores,
Taytay, Rizal
373 SM City Telabastagan 184-185, Ground Floor, SM City Telabastagan, MacArthur Highway,
Brgy. Telabastagan, 2000 City of San Fernando, Pampanga
374 SM City Trece Martires UG/F SM City Trece Martires (LC 33A-135A), Brgy. San Agustin,
Trece Martires, Cavite

SEC FORM 17-A 72

 No. BRANCH ADDRESS

375 SM City Urdaneta Central LC 155-157, G/F SM City Urdaneta Central, MacArthur Highway,
Brgy. Nancayasan, Urdaneta City, Pangasinan
376 SM Delgado G/F SM Delgado Bldg. Valeria St. Iloilo City

377 SM Hypermarket Cainta SM Hypermarket Cainta, Felix Huerta Ave., Cainta, Rizal

378 SM Hypermarket Daet G/F SM Hypermarket Daet, Vinzons Avenue, Brgy. IV, Daet,
Camarines Norte
379 SM Hypermarket Mabalacat G/F SM Hypermarket Pampanga, MacArthur Highway, Brgy.
Camachiles, Dau, Mabalacat, Pampanga
380 SM Lanang Premier UGF SM Lanang Premier, J.P. Laurel Avenue, Brgy. San Antonio
Bajada, Lanang, Davao City
381 SM Market Mall Dasmariñas G/F Dasmariñas Bagong Bayan Resettlement Project Area B (DBB-
B), Congressional Road, Kadiwa, Dasmarinas, Cavite
382 SM Megacenter Cabanatuan UG/F SM Megacenter Cabanatuan, Gen. Tinio & Melencio Sts., San
Roque Norte, Cabanatuan City
383 SM Savemore Davao Bangkal G/F SM Savemore Market Bangkal, Davao Km. 7 MacArthur
Highway, Brgy. Bangkal, Davao City
384 SM Savemore Tacloban G/F SM Savemore Tacloban, Justice Romualdez St., Brgy. 13,
Tacloban City
385 SM Seaside City Cebu A LG/F SM Seaside City Cebu, Brgy. Mambaling, South Road
Reclamation Area, Cebu City
386 SM Seaside City Cebu B 2/F SM Seaside City Cebu, Brgy. Mambaling, South Road
Reclamation Area, Cebu City
387 Sorsogon – Primark J.P. Rizal Primark Sorsogon 3, J.P. Rizal St. corner De Vera St., Brgy. Talisay,
Sorsogon City
388 Sorsogon City Son Bldg., R. Magsaysay Avenue, Sorsogon City

389 South Cotabato – Gaisano GFS 3, 5 and 6 Gaisano Grand Mall Polomolok, National Highway,
Polomolok Brgy. Magsaysay, Polomolok, South Cotabato
390 Sta. Lucia East - Cainta Sta. Lucia East Grand Mall, Marcos Hi-Way corner Felix Avenue,
1900 Cainta, Rizal
391 Sta. Lucia East – Felix Avenue G/F Phase 1, Sta. Lucia Grand Mall, Marcos Highway corner Felix
Avenue, Cainta
392 Sta. Rosa – Arcadia Unit Anchor 2, Arcadia Bldg., Greenfield City, Tagaytay- Balibago
Road, Brgy. Don Jose, Sta. Rosa City, Laguna
393 Sta. Rosa - Don Jose PCC Bldg., Sta. Rosa Tagaytay Road, Barangay Don Jose, Sta.
Rosa, Laguna
394 Sta. Rosa - Puregold Tagapo Puregold Sta. Rosa - Tagapo, Rizal Blvd., Brgy Tagapo, Sta. Rosa,
Laguna
395 Subic - Rizal Highway Subicworx Building, 1056 Rizal Highway, Subic Bay Freeport Zone,
Olongapo City, Zambales
396 Subic - Times Square 420 Rizal Highway, Subic Bay Freeport Zone, 2200 Olongapo City,
Zambales

SEC FORM 17-A 73

 No. BRANCH ADDRESS

397 Sultan Kudarat – Primark Tacurong G10, G/F, Primark Town Center, Magsaysay Avenue corner
Bonifacio St., Purok 1, Brgy. Poblacion, Tacurong City Sultan
Kudarat
398 Surigao Magallanes corner San Nicolas St., 8400 Surigao City
399 Tacloban - Justice Romualdez Philamlife Bldg., Justice Romualdez St. corner P. Paterno St.,
Tacloban City
400 Tacloban - Rizal Avenue Rizal Avenue, Brgy. 41, Tacloban City

401 Tacloban - Zamora Carlos Chan Bldg. P.Zamora St. Tacloban City

402 Tagaytay - Mendez Junction E. Aguinaldo Hi-way, Mendez Crossing, Tagaytay City
403 Tagaytay - Rotonda Frablyn Tower (Tolentino Bldg.), Emilio Aguinaldo Highway,
Tagaytay (near Tagaytay Rotonda)
404 Tagaytay - Wind Residences G/F Tower 2, SM Wind Residences, Aguinaldo Highway, Brgy.
Maharlika West, Tagaytay City
405 Tanauan - A. Mabini A. Mabini St., Tanauan, 4232 Batangas

406 Tanauan - JP Laurel Highway Pres. J. P. Laurel Highway corner Sixto Castillo St., Poblacion,
Tanauan, Batangas
407 Tarlac - Camiling Romulo St., Barangay Poblacion, A. Camiling, Tarlac
408 Tarlac - Capas San Trope Bldg., 57 McArthur Highway, Brgy. Sto. Domingo 1st,
Capas Tarlac
409 Tarlac - Concepcion L. Jaena cor. L. Cortes St., San Nicolas, 2316 Concepcion, Tarlac

410 Tarlac – MacArthur Highway Block 7, MacArthur Highway, Brgy. San Nicolas, Tarlac City

411 Tarlac - San Roque 1567 Zamora St., Brgy. San Roque, Tarlac City, Tarlac

412 Tarlac – CityMall T-01, CityMall-Tarlac, MacArthur Highway, Brgy. San Rafael, Tarlac
City
413 Tarlac – Gerona Nick Hotel Commercial Complex, MacArthur Highway, Brgy.
Abagon, Gerona, Tarlac
414 Taytay - National Highway Korte Rosario Restaurant, Taytay National Highway, Ilog Pugad,
Barangay San Juan, Taytay Rizal
415 Taytay - Manila East Road BDO Bldg., East Road, Taytay, Rizal

416 Tuguegarao – Buntun Luna St., Brgy. Buntun, Tuguegarao City, Cagayan

417 Tuguegarao – CityMall CityMall Tuguegarao, Pan-Philippine Highway, Brgy. Leonarda,

Tuguegarao City, Cagayan
418 Urdaneta - MacArthur Highway 182 LIS Bldg., MacArthur Highway, San Vicente, Urdaneta

419 Urdaneta – Nancayasan 58 7 MacArthur Highway, Phinma Upang College Building, Brgy.
Nancayasan, Urdaneta City, Pangasinan

SEC FORM 17-A 74

 No. BRANCH ADDRESS

420 Vigan - Plaza Maestro G/F Plaza Maestro Commercial Complex, Burgos & Florentino St.,
Vigan City, Ilocos Sur
421 Vigan – Puregold Puregold Vigan, Jose Singson St., Brgy VIII, Sta. Elena, Vigan City,
Ilocos Sur
422 Virac Town Center G/F Virac Town Center, Rizal Avenue, Brgy. Gogon Sirangan, Virac,
Catanduanes
423 Waltermart – Antipolo G/F, Waltermart Antipolo, L. Sumulong Memorial Circle, Brgy. San
Roque, Antipolo City
424 Waltermart – Bacoor Ground Floor, Waltemart Bacoor, Molino Blvd., Brgy. Mamabog IV,
Bacoor City, Cavite
425 Waltermart – Balanga Location Code WBLN 040, G/F, Waltermart Balanga, Roman
Superhighway, Brgy. Tenejero, Balanga City, Bataan
426 Waltermart – Batangas City G/F, Waltermart Batangas, P. Burgos St., Brgy. Calicanto, Batangas
City, Batangas
427 Waltermart - Bel-Air Sta. Rosa G/F Waltermart Bel-Air Sta. Rosa, Tagaytay National Highway, Brgy.
Pulong , Sta. Cruz, Sta. Rosa, Laguna
428 Waltermart – Candelaria Ground Floor, Waltermart Candelaria, Sambat, Maharlika Highway,
Barangay Malabanban Norte, Candelaria Quezon
429 Waltermart – Capas Tarlac G/F Waltermart Capas, MacArthur Highway, Brgy. Sto. Domingo 1,
Capas, Tarlac 2315
430 Waltermart - Guiguinto Waltermart Guiguinto Bulacan, MacArthur Highway, Brgy. Ilang-
ilang, Guiguinto, Bulacan
431 Waltermart – Malolos G/F, Waltermart Malolos, Km 44, MacArthur Highway, Brgy. Longos,
Malolos City Bulacan
432 Waltermart - Pampanga G/F Waltermart Pampanga, MacArthur Highway, San Agustin, San
Fernando, Pampanga
433 Waltermart - Sta. Maria G/F Waltermart Sta. Maria, Provincial Road corner By Pass Road,
Brgy. Sta.Clara, Sta. Maria, Bulacan
434 Waltermart - Sta. Rosa San Lorenzo Drive corner Balibago Road, Brgy. Balibago, 4026 Sta.
Rosa, Laguna
435 Waltermart – Balayan G/F Waltermart Balayan, Balibago-Balayan Highway corner Paz St.,
Brgy. Caloocan, Balayan, Batangas
436 Waltermart – Cabanatuan G/F Waltermart Cabanatuan, Brgy. Dicarma, Cabanatuan City,
Nueva Ecija
437 Waltermart – Carmona G/F Waltermart Carmona, Macaria Business Center, National
Highway, Brgy. Mabuhay, Carmona, Cavite
438 Waltermart – Concepcion Tarlac G/F Waltermart Concepcion (LC WCON 033), L. Cortez St., Brgy.
Alfonso, 2316 Concepcion, Tarlac
439 Waltermart – Dasmariñas G/F Waltermart Dasmariñas, National Highway, Brgy. Barrio Burol,
Dasmariñas, Cavite
440 Waltermart – Nasugbu Location Code WNAS 017, G/F Waltermart Nasugbu, J.P. Laurel
Highway, Brgy. Lumbangan, Nasugbu, Batangas

SEC FORM 17-A 75

 No. BRANCH ADDRESS

441 Waltermart – Paniqui G/F, Waltermart Paniqui, MacArthur Highway, Brgy. Estacion,
Paniqui, Tarlac 2307
442 Waltermart – San Jose G/F, Waltermart San Jose, Pan Philippine Highway, Brgy. Malasin,
San Jose, Nueva Ecija
443 Waltermart – Subic G/F Waltermart Subic, Subic National Highway, Brgy. Mangan Vaca,
Subic, Zambales
444 Waltermart – Talavera Unit WMT G-32, G/F Waltermart Talavera, Maharlika Highway, Brgy.
La Torre, Talavera, Nueva Ecija 3114
445 Waltermart – Tanauan G/F Waltermart Tanauan, Pres. J.P. Laurel Highway, Brgy. Darasa,
Tanauan City, Batangas
446 Waltermart – Taytay LG/F Waltermart Taytay, Ortigas Avenue Extension, Brgy. San
Isidro, Taytay, Rizal
447 Waltermart Center - Makiling G/F Waltermart Center Makiling, National Highway, Brgy. Makiling,
Calamba, Laguna
448 Waltermart Center – Cabuyao G/F Waltermart Center Cabuyao, Km 47 National Highway, Brgy.
Banlic, Cabuyao, Laguna
449 Zambales - Castillejos G/F RM Mall, National Highway, Brgy San Nicolas, Castillejos,
Zambales
450 Zambales - Iba Zambales - Pangasinan Provincial Road, Brgy. Sagapan, Iba,
Zambales
451 Zamboanga - Ipil National Highway, Ipil, 7001 Zamboanga Del Sur
452 Zamboanga – Canelar Mayor Jaldon Avenue, Brgy. Canelar, Zamboanga City
453 Zamboanga – City Mall Tetuan U33 CityMall Tetuan Zamboanga, Gov. Alvarez Extension, Tetuan,
Zamboanga City
454 Zamboanga – La Purisima La Purisima St., Brgy. Zone II, Zamboanga City
455 Zamboanga – Veterans Avenue G/F Wee Agro Commercial Bldg., Veterans Avenue, Brgy Camino
Nuevo, Zamboanga City

3) Limitations on Property

Other than the properties owned by the Bank, the other properties utilized by the Bank are subject
to the respective terms of lease.

4) Properties to be acquired

The Bank does not have any current plans to acquire any property within the next twelve (12) months.

5) Properties of Subsidiaries

The Bank’s subsidiaries own and lease several real properties for use as main and branch offices.

SEC FORM 17-A 76

Lease on such premises are for various periods and terms, and are renewable upon the mutual
agreement of the parties. Lease terms ranges from 5 to 10 years. Some contracts provide for renewal
options subject to mutual agreement of the parties. Rental rates are based on prevailing market
rental rates for the said properties. Please refer to Notes 2.20, 13, and 34.2 of the accompanying
Notes to Financial Statements for further details on Lease.

6) Limitations on Property

The properties leased and utilized by the subsidiaries are subject to the respective terms of lease
and, to the best of the subsidiaries knowledge, are not subject to any mortgage, lien or encumbrance.

Item 3. Legal Proceedings

The Bank is a party to various legal proceedings which arise in the ordinary course of its operations.
Following existing regulatory requirements, no such legal proceedings, either individually or in the
aggregate, are expected to have a material adverse effect on the Bank or its consolidated financial
condition. A discussion of the other legal proceedings of the Bank is found in Note 34.1 of the
accompanying Notes to Financial Statements as of the year ended 31 December 2021.

Others

The Group is also a defendant in various cases pending in courts for alleged claims against the
Group, the outcome of which are not fully determinable at present. As of 31 December 2021
management believes that, liabilities or losses, if any, arising from these claims would not have a
material effect on the financial position and results of operations of the Group and will be taken up if
and when a final resolution by the courts is made on each claim.

Item 4. Submission of Matters to a Vote of Security Holders

To be presented for shareholders’ approval at this year’s annual meeting is the declaration of twenty
percent (20%) stock dividends approved by the Board of Directors during its meeting held on 26
March 2022. A total of 877,158,203 common shares, based on a total outstanding common shares
of 4,385,791,015 as of date of 30 March 2022, shall be issued as stock dividends. However, the
number is subject to change should BDO’s total outstanding common shares move due to additional
share issuances pursuant to BDO’s employee stock option plan prior to determination of the record
date upon securing necessary regulatory approvals.

The increase of the authorized capital stock of BDO from 5,500,000,000 to 8,500,000,000 common
shares, and the corresponding amendment to the Seventh Article of BDO’s Amended Articles of
Incorporation to reflect the increase in the Authorized Capital Stock, will likewise be endorsed for
ratification by the shareholders at the annual meeting.

Approval and ratification by the shareholders will be sought to amend the Articles of Incorporation of
BDO to increase the authorized capital stock. The Board approved and endorsed to the stockholders

SEC FORM 17-A 77

for their approval and ratification the proposed amendments at its meeting on 26 March 2022. Shares
to be issued pursuant to the stock dividends shall be applied as subscription to the increase.

Required vote: Vote of shareholders representing at least two-thirds of outstanding capital stock.

The increase of BDO’s authorized capital stock is for the purpose of giving BDO flexibility to increase
its capital during periods of rapid organic growth or in the event of inorganic opportunities. Proposed
changes shall not have any effect on the current rights enjoyed by shareholders.

SEC FORM 17-A 78

 PART II - OPERATIONAL AND FINANCIAL INFORMATION

Item 5. Market for Issuers Common Equity and Related Stockholder Matters

1) Stock Prices

The Bank’s common shares are traded at the Philippine Stock Exchange, Inc. The high and
low sales prices for each quarter within the last two (2) fiscal years are as follows:

High Low
First Quarter 2020 157.50 75.00
Second Quarter 2020 114.00 85.60
Third Quarter 2020 102.30 85.00
Fourth Quarter 2020 115.40 86.55

First Quarter 2021 113.50 99.00

Second Quarter 2021 118.10 98.50
Third Quarter 2021 117.10 102.00
Fourth Quarter 2021 135.00 111.00
Source: www.edge.pse.com.ph

As of December 31, 2021, the closing price of the Bank’s common shares is P 120.70.

2) Holders of Securities

The number of common shareholders of record as of December 31, 2021 was 12,390.
Common shares outstanding as of December 31, 2021 stood at 4,385,519,015. The top
twenty (20) common shareholders are as follows:

No. of Shares
Rank Name of Stockholder Nationality % of Ownership
Owned
1 SM Investments Corp. Filipino 1,787,180,649 * 40.75%
2 PCD Nominee Corp. (Non-Filipino) Non-Filipino 1,099,584,793 25.07%
3 PCD Nominee Corp. (Filipino) Filipino 755,988,956 ** 17.24%
4 Multi-Realty Development Corporation Filipino 291,513,036 * 6.65%
5 Sybase Equity Investments Corporation Filipino 240,010,292 * 5.47%
6 Shoemart, Inc. (now SM Prime Holdings, Inc.) Filipino 90,024,395 2.05%
7 DFC Holdings, Inc. Filipino 30,430,341 0.69%
8 Dacon Corporation Filipino 25,377,549 0.58%
9 Sysmart Corporation Filipino 10,095,661 * 0.23%
10 Executive Optical Inc. Filipino 2,724,575 * 0.06%

SEC FORM 17-A 79

 No. of Shares
Rank Name of Stockholder Nationality % of Ownership
Owned
11 Edilberto Narciso Filipino 2,615,452 0.06%
12 La Filipina Uy Gongco Corp. Filipino 2,597,540 0.06%
13 Lucky Securities, Inc. Filipino 2,393,828 0.05%
14 DHS Investment Filipino 2,337,769 0.05%
15 Felicidad T. Sy Filipino 1,133,837 0.03%
16 Cedar Commodities Filipino 1,050,146 * 0.02%
17 Ernest Lee Go Filipino 1,042,124 0.02%
18 Hong Eng Tan Filipino 863,500 0.02%
19 Jonathan Dee Co Filipino 800,000 0.02%
20 Regina Capital Development Corp. Filipino 603,812 0.01%
Total 4,348,368,255 99.15%
* Inclusive of PCD-lodged shares
** Exclusive of PCD-lodged shares of SM Investments Corporation, Multi-Realty
Development Corporation, Sybase Equity Investments Corporation, Sysmart
Corporation, Executive Optical Inc., and Cedar Commodities, Inc.

The material information on the current shareholders and voting rights are discussed in Items
4(d) and 4(c), respectively, of the Information Statement.

In particular, the following are known to BDO to be directly or indirectly the record and/or
beneficial owners of more than 5% of BDO’s voting securities:

Name of Beneficial
Name, address of record
Owner and
Title of Class owner and relationship with Citizenship No. of Shares Held Percent
Relationship with
BDO
Record Owner
Common SM Investments Corp. Sy Family
10th Floor One E-Com (Substantial Filipino 1,787,180,649 * 40.75%
Center, Harbour Drive, Mall Stockholders)
of Asia Complex, CBP-I-A,
Pasay City/ Parent Company

Common PCD Nominee Corp. (Non-

Filipino) Various Foreign 1,099,584,793 25.07%
29th Floor, BDO Equitable stockholders
Tower, 8751 Paseo de Roxas,
Makati City/Various
stockholders
Common PCD Nominee Corp. (Filipino)
29th Floor, BDO Equitable Various Filipino 759,527,805** 17.32%
Tower, 8751 Paseo de stockholders
Roxas, Makati City/ Various
stockholders

SEC FORM 17-A 80

 Name of Beneficial
Name, address of record
Owner and
Title of Class owner and relationship with Citizenship No. of Shares Held Percent
Relationship with
BDO
Record Owner
Common Multi-Realty Development
Corporation SM Investments Filipino 291,513,036 * 6.65%
10th Floor L.V. Locsin Building, Corp.
6752 Ayala Ave., Makati City/ (Subsidiary)
Stockholder

Common Sybase Equity Investments

Corporation Various corporate Filipino 240,010,292 * 5.47%
10th Floor L.V. Locsin Building, stockholders
6752 Ayala Ave., Makati City/
Stockholder
TOTAL (COMMON) 4,177,816,575 95.26%

* Inclusive of PCD-lodged shares of SM Investments Corporation (SMIC), Multi-Realty

Development Corporation (MRDC) and Sybase Equity Investments Corporation (SEIC)
** Exclusive of PCD-lodged shares of SMIC, MRDC and SEIC.

Preferred Sybase Equity Investments

Corporation Various corporate Filipino 391,400,000 76.00%
10th Floor L.V. Locsin stockholders
Building, 6752 Ayala Ave.,
Makati City/ Stockholder
Preferred SM Investments Corp. Sy Family
10th Floor One E-Com (Substantial Filipino 123,600,000 24.00%
Center, Harbour Drive, Mall Stockholders)
of Asia Complex, CBP-I-A,
Pasay City/ Parent Company
TOTAL (PREFERRED) 515,000,000 100.00%

The persons authorized to vote the shares of SM Investments Corporation, Multi-Realty

Development Corporation and Sybase Equity Investment Corporation are Ms. Teresita T. Sy
and/or Mr. Henry T. Sy, Jr. and/or Mr. Harley T. Sy.

As of December 31, 2021, the following are known to BDO as the PCD participants holding
5% or more of BDO’s voting securities:

Percent of
Member Name and Address No. of Shares
Shareholdings
BDO Sec BDO Securities Corporation 338,402,568 7.72%
Clients’ Accounts 33rd Floor BDO Towers Valero
8741 Paseo de Roxas, Salcedo Village,
Makati City 1226

SEC FORM 17-A 81

 Percent of
Member Name and Address No. of Shares
Shareholdings
SCBK Clients’ Standard Chartered Bank 289,005,008 6.59%
Account Standard Chartered Bank Building 6788
Ayala Avenue, Makati City
TOTAL 627,407,576 14.31%

• The PCD, being a nominee corporation, only holds legal title, not beneficial
ownership of the lodged shares. The beneficial owners, such as the clients of PCD,
have the power to decide how their shares are to be voted.

(NOTE: There are no voting trust shares or shares issued pursuant to a Voting Trust Agreement
registered with BDO nor has there been any change in control of BDO. BDO is also not aware of
any contractual arrangement or otherwise between its shareholders and/or third parties, which may
result in change in control of BDO).

On voting rights, each shareholder holding Common Shares and Series A Preferred Shares
(each, a “Voting Share/s”) as of the record date is entitled to as many votes as there are
directors to be elected. Thus, if there are eleven (11) directors to be elected, each Voting
Share is entitled to eleven (11) votes. Such shareholder may cumulate and cast all his votes
in favor of one candidate or distribute them among as many candidates as he shall see fit,
provided that the total number of votes cast by him does not exceed the number of shares
owned by him multiplied by the number of directors to be elected.

As of 31 December 2021, the Bank has a public float level of 44.14%.

3) Dividends

The Bank’s Board of Directors is authorized to declare dividends annually. Stock Dividend
declarations require further approval of stockholders representing not less than two-thirds
(2/3) of all stocks outstanding and entitled to vote. Such stockholders’ approval may be
given at a general or special meeting duly called for the purpose. Dividends may be declared
only from surplus profits after making proper provisions for necessary reserves in
accordance with applicable laws and the regulations of the BSP.

On March 26, 2022, the Board of Directors approved the declaration of stock dividends
equivalent to twenty percent (20%) of BDO’s outstanding capital stock, to be issued pursuant
to BDO’s increase of authorized capital stock. The record and payment date shall be
determined upon securing the necessary regulatory approvals.

On February 24, 2022, the Board of Directors approved the declaration of cash dividends on
common shares in the amount of Php0.30 per share for the 1st Quarter of 2022 payable on
March 31, 2022 to all stockholders of record as of March 14, 2022.

SEC FORM 17-A 82

 On January 30, 2021, the Board of Directors of BDO approved the declaration of annual
cash dividends on preferred shares at the rate of 6.5% per annum for a total dividend amount
of P340 million. The dividends were paid on February 22, 2021.

The Board of Directors approved the declaration of quarterly cash dividends in the amount
of P0.30 per common share for the first, second, third and fourth quarters of 2021 on
February 24, 2021, May 29, 2021, August 27, 2021 and December 4, 2021, respectively.
The dividends were paid on March 25, 2021, June 25, 2021, September 24, 2021 and
December 29, 2021, respectively.

On February 1, 2020, the Board of Directors of BDO approved the declaration of annual cash
dividends on preferred shares at the rate of 6.5% per annum for a total dividend amount of
P339 million. The dividends were paid on February 21, 2020.

The Board of Directors approved the declaration of quarterly cash dividends in the amount
of P0.30 per common share for the first, second, third and fourth quarters of 2020 on
February 27, 2020, May 30, 2020, August 29, 2020 and December 5, 2020, respectively.
The dividends were paid on March 27, 2020, June 29, 2020, September 28, 2020 and
December 29, 2020, respectively.

On January 26, 2019, the Board of Directors of BDO approved the declaration of annual
cash dividends on preferred shares at the rate of 6.5% per annum for a total dividend amount
of P339 million. The dividends were paid on March 8, 2019.

The Board of Directors approved the declaration of quarterly cash dividends in the amount
of P0.30 per common share for the first, second, third and fourth quarters of 2019 on
February 23, 2019, May 25, 2019, August 31, 2019 and December 7, 2019, respectively.
The dividends were paid on March 25, 2019, June 24, 2019, September 30, 2019 and
December 27, 2019, respectively.

4) Recent Sales of Unregistered Securities (within 3 years)

On January 28, 2022, the Bank issued P52.7 billion Peso-denominated fixed rate ASEAN
Sustainability Bonds to diversify its funding sources and finance/refinance eligible assets
under the Bank’s Sustainable Finance Framework.

On February 3, 2020, the Bank issued P40.1 billion fixed rate bonds to diversify funding
sources and support its lending activities.

On July 3, 2020, the Bank issued P36.0 billion in Fixed Rate Peso Bonds to diversify its
funding sources and support its lending activities.

On July 13, 2020, the Bank issued $600 million in Fixed Rate Senior Notes to tap longer-
term funding sources to support dollar-denominated projects.

SEC FORM 17-A 83

 On February 11, 2019, the Bank issued P35.0 billion of fixed rate bonds to diversify funding
sources and support business expansion.

On April 12, 2019, the Bank issued P7.32 billion worth of Long-Term Negotiable Certificates
of Deposit (LTNCD) to lengthen the maturity of its funding sources and support business
expansion plans.

On September 27, 2019, the Bank issued P6.5 billion worth of LTNCD to diversify the
maturity of its funding sources and support business expansion plans.

Item 6 – Management’s Discussion and Analysis or Plan of Operations

1) Management’s Discussion and Analysis

Balance Sheet – 2021 vs. 2020

Total Resources expanded 7% to P3.6 trillion as Gross Loans rose 6% to P2.4 trillion and
Investment Securities jumped 21% to P616.3 billion. Cash and Other Cash Items went down
8% to P69.1 billion while Due from Other Banks went up 7% to P70.1 billion owing to higher
placements and working balances with correspondent banks.

Equity Investments increased 7% to 5.2 billion owing to earnings from associates.

Investment Properties also rose 19% to P18.8 billion from an investment in prime real estate
in Makati. Deferred Tax Assets dropped 14% to P6.8 billion mainly due to loan write-offs.
Other Assets dropped 13% to P36.9 billion on reduced levels of foreign currency notes and
coins, retirement and miscellaneous assets.

Deposit Liabilities climbed 8% to P2.8 trillion from an expansion in Demand and Savings
deposits of 29% and 11%, respectively, as the Bank continued its low cost deposit marketing
efforts. Insurance Contract Liabilities hiked 12% to P65.3 billion from sustained BDO Life
business volumes.

Total Equity increased 8% to P424.5 billion from bottomline profits.

Contingent Accounts – 2021 vs. 2020

Total Contingent Accounts rose 9% to P2.7 trillion owing to the following accounts:

• Trust Department Accounts grew 9% to P1.8 trillion from a larger portfolio of funds managed.
• Unused L/Cs and Outstanding Guarantees Issued soared 46% and 21% to P75.8 billion and P4.2 billion,
respectively, owing to higher volume of trade transactions.
• Export L/Cs Confirmed, Bills for Collection, as well as Late Deposits and Payments Received, fell 26%,
41% and 63% to P4.6 billion, P8.7 billion and P461 million, respectively, after lower outstanding
transactions as of year-end 2021.

SEC FORM 17-A 84

 • Increased treasury trading activities yielded an increase in Spot Exchange Bought and Sold, Forward
Exchange Bought and Sold, and Interest Rate Futures Sold. On the other hand, Interest Rate Swap
Receivable and Payable went down year-on-year.

Income Statement – For the years Ended December 31, 2021 vs. 2020

The Bank posted a Net Income attributable to Equity holders of the Parent Company of
P42.8 billion in 2021, a 51% improvement from previous year’s P28.2 billion. Net Interest
Income slightly dipped by 2% to P131.3 billion owing to a general decline in lending rates
as well as the rate cap imposed by BSP on credit card receivables. Other income grew
11% to P61.4 as Service Charges, Trust Fees, FX Gain, Insurance Premiums and
Miscellaneous Income all posted year-on-year increases as the economy recovered from
the business slowdown in 2020.

Operating Expenses went up 6% to P119.9 billion owing to the following:

• Employee Benefits increased 12% primarily from salary increases and benefits extended due to the
pandemic.
• Taxes and Licenses dropped 12% due to lower Documentary Stamp Tax on Time Deposits.
• Insurance expenses increased 5% from higher deposit levels.
• Litigation/Assets Acquired expenses hiked 29% from higher costs associated with litigation and
maintenance of acquired assets.
• Insurance Policy Reserves, Benefits and Claims climbed 19% from higher BDO Life business
volumes.
• Other Operating Expenses rose 6% owing to increased business volumes year-on-year.

Tax Expense fell 27% to P12.9 billion primarily due to lower tax rates resulting from the
Corporate Recovery and Tax Incentives for Enterprises Act (CREATE).

Comprehensive Income – For the years Ended December 31, 2021 vs. 2020

From a Consolidated Net Income of P42.9 billion, Total Comprehensive Income for 2021
registered at P37.0 billion, inclusive of a decrease in net gains on FVOCI Securities of
P5.8 billion, a P92 million translation adjustment related to foreign operations, an actuarial
loss on remeasurement of retirement benefit obligation amounting to P6.0 billion, a
remeasurement of life insurance reserves of P5.7 billion, a reversal of revaluation
increment of P55 million, a P135 million increase in unrealized gains on equity investments
at FVOCI and a negative P6 million share in Other Comprehensive Income of affiliates.
The Total Comprehensive Income represents a 35% improvement from P27.5 billion in
2020.

Key Performance Indicators – 2021 vs. 2020

2021 2020 Inc/(Dec)

Return on Average Common Equity 10.5% 7.6% 2.9%
Return on Average Equity 10.4% 7.5% 2.9%
Return on Average Assets 1.2% 0.9% 0.3%

SEC FORM 17-A 85

 Net Interest Margin 4.0% 4.4% -0.4%
Capital to Risk Assets 14.6% 14.4% 0.2%
Basic Earnings Per Share 9.68 6.37 3.31
Liquidity Ratio 32.2% 30.8% 1.4%
Solvency Ratio (Debt-to-Equity) 753.6% 758.7% -5.1%
Asset-to-Equity Ratio 853.6% 858.7% -5.1%
Interest Rate Coverage Ratio 512.0% 297.3% 214.7%
Profit Margin 20.8% 13.3% 7.5%

Return on Average Common Equity, Return on Average Equity, Return on Average Assets
and Basic Earnings Per Share improved to 10.5%, 10.4%, 1.2% and 9.68, respectively,
owing to a higher Net Income.

Net Interest Margin was lower at 4.0% from the general decline in lending rates as well as
the rate cap imposed by BSP on credit card receivables.

Capital to Risk Assets went up to 14.6% as the increase in capital outpaced the growth in
risk weighted assets.

Liquidity Ratio rose to 32.2% as excess funds were channeled to liquid assets.

Solvency Ratio and Asset-to-Equity Ratio went down to 753.6% and 853.6%, respectively,
as the growth in total equity outpaced the increases in both liabilities and total assets.

Interest Rate Coverage soared to 512.0% on higher profits and lower interest expense
from an improved funding mix.

Profit Margin climbed to 20.8% on higher bottomline profits.

Balance Sheet – 2020 vs. 2019

Total Resources increased 6% to P3.4 trillion as Gross Loans went up 3% to P2.3 trillion
and Investment Securities expanded 17% to P508.8 billion. Cash and Other Cash Items
grew 17% to P74.9 billion resulting from deposit expansion. Due from Other Banks jumped
68% to P65.3 billion owing to higher placements and working balances with correspondent
banks.

Bank Premises and Net Finance Lease went down 5% to P44.3 billion on account of
depreciation of facilities and equipment. Investment Properties dropped 6% to P15.9 billion
on lower levels of ROPA and reclassification to Bank Premises of some branch sites.
Deferred Tax Assets declined 11% to P7.9 billion owing to the amortization of past service
cost. Other Resources climbed 12% to P42.4 billion mainly from an increase in foreign
currency notes and coins on hand as of year-end 2020.

Deposit Liabilities grew 5% to P2.6 trillion as Demand and Savings deposits soared 35%
and 14% to P314.3 billion and P1.8 trillion, respectively, driven by the Bank’s continued

SEC FORM 17-A 86

 accessibility through its branches, ATMs and digital channels. Bills Payable jumped 25%
to P209.7 billion on peso and USD bond issuances, while the Bank redeemed its P10.0
billion Subordinated Notes Payable in March 2020. Insurance Contract Liabilities hiked
38% to P58.4 billion due to re-measurement of life insurance reserves given the decline in
interest rates as well as sustained BDO Life business volumes. Other Liabilities slid 8% to
P103.6 billion owing to reduced Bills Purchased contra account and lease and security
deposits.

Total Equity increased 6% to P393.0 billion from profitable operations.

Contingent Accounts – 2020 vs. 2019

Total Contingent Accounts climbed 15% to P2.5 trillion owing to the following accounts:

• Trust Department Accounts surged 22% to P1.6 trillion on higher level of assets managed.
• Outstanding Guarantees Issued and Bills for Collection grew 18% and 35% to P3.5 billion and P14.6
billion, respectively.
• Unused L/Cs, Export L/Cs Confirmed, as well as Late Deposits and Payments Received, were lower
by 3%, 20% and 60% at P52.0 billion, P6.3 billion and P1.3 billion, respectively, on lower outstanding
transactions as of year-end 2020.
• Increased treasury trading activities yielded an increase in Forward Exchange Bought and Sold and
Interest Rate Futures Sold, while Spot Exchange Bought and Sold as well as Interest Rate Swap
Receivable and Payable declined year-on-year.
• Other Contingent Accounts went up 5% to P436.2 billion following growth in Committed Credit Lines.

Income Statement – For the years Ended December 31, 2020 vs. 2019

The Bank posted a Net Income attributable to Equity holders of the Parent Company of
P28.2 billion in 2020, 36% lower than previous year’s P44.2 billion. This was due to the
P30.2 billion Provision for Impairment Losses in anticipation of an increase in non-
performing loans due to the COVID-19 pandemic and the resulting Enhanced and General
Community Quarantine (ECQ / GCQ) imposed across the country. Pre-provision
Operating Income, however, remained strong, growing by 17% year-on-year to P76.3
billion, as the Bank’s core businesses exhibited resilience despite the pandemic.

Net Interest Income increased 12% to P133.7 billion owing to an expansion in margins as
well as growth in interest-earning assets. Other income went down 8% to P55.2 due to
the pandemic and the resulting slowdown in business activity. Service Charges, FX Gain
and Miscellaneous Income dropped 22%, 54% and 13%, respectively. However, Trading
Gain, Trust Fees and Insurance Premiums increased 310%, 8%, and 2%, respectively.

Operating Expenses were lower by 2% to P112.6 billion due to the following:

• Employee Benefits rose 6% from a higher manpower count as well as allowances and benefits to
employees during the ECQ /GCQ period.
• Taxes and Licenses dropped 10% owing to lower Documentary Stamp Tax on reduced Time Deposit
levels.

SEC FORM 17-A 87

 • Insurance expenses rose 6% following continued deposit expansion.
• Litigation/Assets Acquired expenses went up 10% from higher costs relating to litigation and
maintenance of acquired assets.
• Advertising expenses declined 38% on lower marketing, promotional and advertising expenditures.
• Policy Reserves as well as Insurance Benefits and Claims increased 19% and 34%, respectively,
reflecting adverse market movements and sustained business volumes of BDO Life. Policy reserves
relating to the revaluation of unit linked investments (ULs) have been offset against the corresponding
trading gain/loss starting 2020, to reflect the net impact in the income statement, rather than on a
gross basis. The income statements for prior years have likewise been adjusted to a net basis, with
no change in the net income numbers.
• Security, Clerical and Janitorial expenses as well as Other Operating Expenses dropped 8% and
11%, respectively, from scaled down business operations during the middle of the year

Tax Expense increased 18% to P17.8 billion on a higher taxable income base.

Comprehensive Income – For the years Ended December 31, 2020 vs. 2019

From a Consolidated Net Income of P28.3 billion, Total Comprehensive Income for 2020
stood at P27.5 billion, inclusive of an increase in net gains on FVOCI Securities of P4.1
billion, a negative P44 million translation adjustment related to foreign operations, an
actuarial gain on remeasurement of retirement benefit obligation amounting to P764
million, a remeasurement of life insurance reserves of negative P6.1 billion, a P579 million
increase in unrealized gains on equity investments at FVOCI and a negative P10 million
share in Other Comprehensive Income of affiliates. The Total Comprehensive Income
registered a 38% decline from P44.7 billion in 2019.

Key Performance Indicators – 2020 vs. 2019

2020 2019 Inc/(Dec)

Return on Average Common Equity 7.6% 12.8% -5.2%
Return on Average Equity 7.5% 12.6% -5.1%
Return on Average Assets 0.9% 1.4% -0.5%
Net Interest Margin 4.4% 4.2% 0.2%
Capital to Risk Assets 14.4% 14.2% 0.2%
Basic Earnings Per Share 6.37 10.02 -3.65
Liquidity Ratio 30.8% 27.8% 3.0%
Solvency Ratio (Debt-to-Equity) 758.7% 760.5% -1.8%
Asset-to-Equity Ratio 858.7% 860.5% -1.8%
Interest Rate Coverage Ratio 297.3% 245.5% 51.8%
Profit Margin 13.3% 20.0% -6.7%

Return on Average Common Equity, Return on Average Equity, Return on Average

Assets and Basic Earnings Per Share declined to 7.6%, 7.5%, 0.9% and 6.37,
respectively, owing to lower Net Income, due to the pre-emptive provisions set aside for
the potential increase in delinquencies from the pandemic.

SEC FORM 17-A 88

 Net Interest Margin improved to 4.4% given modest growth in interest-earning assets and
an improvement in funding mix.

Capital to Risk Assets inched up to 14.4% as the increase in capital slightly outpaced the
growth in risk weighted assets.

Liquidity Ratio rose to 30.8% owing to an increase in liquid assets and slower loan growth.

Solvency Ratio and Asset-to-Equity Ratio went down to 758.7% and 858.7%,
respectively, as capital increased at a slightly faster rate than both liabilities and total
assets.

Interest Rate Coverage Ratio improved to 297.3% following a decline in interest rates.

Profit Margin dropped to 13.3% on lower bottomline profits.

Balance Sheet – 2019 vs. 2018

Total Resources grew 6% to P3.2 trillion as both Investment Securities and Gross Loans
climbed 13% and 9% to P435.9 billion and P2.2 trillion, respectively. Cash and Other
Cash Items went up 19% to P64.1 billion from deposit expansion. Due from BSP went
down 13% to P309.0 billion owing to the reduction in reserve requirement implemented
during the year. Due from Banks slid 30% to P39.0 billion on lower placements and
working balances with correspondent banks.

Bank Premises and Net Finance Lease inflated 38% to P46.6 billion due to the newly
implemented lease accounting standard as well as reclassifications from Investment
Properties. Consequently, Investment Properties dropped 15% to P16.9 billion. Deferred
Tax Assets rose 7% to P8.9 billion resulting from the Bank’s retirement obligation. Other
Resources went up 7% to P37.8 billion primarily owing to higher levels of outstanding
credit card transactions.

Deposit Liabilities grew 3% to P2.5 trillion as Demand and Savings deposits expanded
29% and 6%, respectively. Meantime, Time deposits declined 10%, year-on-year as the
Bank reduced its reliance on more expensive funding sources. Bills Payable hiked 17%
to P167.5 billion from the issuance of the P35.0 billion fixed rate bonds. Insurance
Contract Liabilities soared 49% to P42.5 billion on higher BDO Life business volumes.
Other Liabilities climbed 23% to P113.0 billion due to the recognition of finance lease
payment payable from the newly implemented lease accounting standard as well as
increases in accounts payable and other accrued expenses, outstanding checks as of
the cut-off date.

Total Equity increased 13% to P370.6 billion from the Bank’s continued profitability.

Contingent Accounts – 2019 vs. 2018

SEC FORM 17-A 89

 Total Contingent Accounts grew 14% to P2.2 trillion due to material movements from the
following accounts:

• Trust Department Accounts hiked 15% to P1.3 trillion from a larger portfolio of funds
managed.
• Unused L/Cs, Outstanding Guarantees Issued and Export L/Cs Confirmed surged 10%, 72%
and 27% to P53.7 billion, P2.9 billion and P7.9 billion, respectively, owing to higher volume
of trade transactions.
• Late Deposits and Payments Received went up 19% to P3.2 billion as more transactions
were received from clients after clearing cut-off time.
• Increased treasury trading activities yielded growth in Spot and Forward Exchange Bought
and Sold. Meantime, Interest Rate Swap Receivable and Payable declined year-on-year.
• Other Contingent Accounts climbed 15% to P415.6 billion from expansion in Committed
Credit Lines.

Income Statement – For the years Ended December 31, 2019 vs. 2018

The Bank recorded a Net Income attributable to Equity holders of the Parent Company
of P44.2 billion in 2019, 35% higher than previous year’s P32.7 billion. Net Interest
Income climbed 22% to P119.9 billion owing to an expansion in margins as well as growth
in interest-earning assets. The Bank prudently set aside P6.2 billion in provisions for
loans, securities, ROPA and other assets.

Other income also hiked 19% to P60.1 billion as Service Charges, Trust Fees, and
Insurance Premiums increased 16%, 7%, and 25%, respectively, showing strong growth
across the Bank’s main business lines. The Bank likewise recorded a Trading Gain of
P1.4 billion vis-à-vis a Trading Loss of P864 million the previous year.

Operating Expenses went up 16% to P114.6 billion owing to the following:

• Employee Benefits rose 16% from salary increases and an increasing manpower count coming
from business expansion.
• Taxes and Licenses jumped 21% attributed to Gross Receipts Tax (GRT) on higher income.
• Insurance expenses increased 9% following continued deposit expansion.
• Policy Reserves soared 41% reflecting higher business volumes of BDO Life.
• Security, Clerical and Janitorial expenses as well as Other Operating Expenses went up 7% and
20%, respectively, owing to an expanded distribution network as well as increased business
volumes.

Tax Expense jumped 36% to P15.0 billion following a higher pre-tax income.

Comprehensive Income – For the years Ended December 31, 2019 vs. 2018

From a Consolidated Net Income of P44.2 billion, Total Comprehensive Income for 2019
stood at P44.7 billion. This included an increase in net gains on FVOCI Securities of P7.8
billion, a negative P1 million translation adjustment related to foreign operations, an
actuarial loss on retirement benefit asset amounting to P2.4 billion, a remeasurement of

SEC FORM 17-A 90

 life insurance reserves of negative P5.0 billion, a P79 million rise in unrealized gains on
equity investments at FVOCI and a P14 million share in Other Comprehensive Income of
affiliates. The Total Comprehensive Income registered a 60% improvement from P27.9
billion in 2018.

Key Performance Indicators – 2019 vs. 2018

2019 2018 Inc/(Dec)

Return on Average Common Equity 12.8% 10.7% 2.1%
Return on Average Equity 12.6% 10.6% 2.0%
Return on Average Assets 1.4% 1.1% 0.3%
Net Interest Margin 4.15% 3.64% 0.51%
Capital to Risk Assets 14.2% 13.8% 0.4%
Basic Earnings Per Share 10.02 7.40 2.62
Liquidity Ratio 27.8% 30.4% -2.6%
Solvency Ratio (Debt-to-Equity) 760.5% 821.0% -60.5%
Asset-to-Equity Ratio 860.5% 921.0% -60.5%
Interest Rate Coverage Ratio 245.5% 241.9% 3.6%
Profit Margin 20.0% 18.2% 1.8%

Return on Average Common Equity, Return on Average Equity, Return on Average

Assets and Basic Earnings Per Share climbed to 12.8%, 12.6%, 1.4% and 10.02,
respectively, owing to higher Net Income.

Net Interest Margin improved to 4.15% given higher asset yields in 2019 and growth in
earning assets.

Capital to Risk Assets hiked to 14.2% as capital went up at a faster pace than risk
weighted assets.

Liquidity Ratio declined to 27.8% on sustained loan expansion.

Solvency Ratio and Asset-to-Equity Ratio dropped to 760.5% and 860.5%, respectively,
as capital went up at a faster rate than both liabilities and total assets.

Interest Rate Coverage Ratio moved up to 245.5% following high revenue growth.

Profit Margin improved to 20.0% as revenue increase outpaced cost growth.

(2) Past and Future Financial Condition and Results of Operations

BDO Unibank, Inc. (BDO) delivered a net income of P42.9 billion in 2021 compared to P28.3
billion the previous year, on the Bank’s resilient business franchise and normalized
provisions. Earnings normalized to pre-pandemic levels, showing stable quarter on quarter
business performance with loan growth turning positive. Asset quality remains stable with
NPL ratio at 2.8% and NPL coverage at 111%.

SEC FORM 17-A 91

 Gross customer loans outpaced the industry with a 6% year-on-year increase while total
deposits went up by 8% year-on-year, driven by the 13% expansion in Current
Account/Savings Account (CASA) deposits that now comprise 85% of total deposits. Non-
interest income increased by 11% year-on-year while trading and forex gains normalized to
P3.8 billion.

The Bank sustained investments in its IT/digital infrastructure and expanded its digital
capabilities to further elevate customer experience and raise productivity. The Bank
launched during the year its mobile wallet BDO Pay. In addition, BDO clients can now enjoy
paperless in-branch transactions, card-less ATM transactions using biometrics and QR
codes, and fully digital account opening.

Total capital base strengthened to P424.5 billion, with Common Equity Tier 1 ratio at 13.5%,
well above regulatory minimum. Return on Average Common Equity improved to 10.5%
from 7.6% the previous year.

Prospects for the Future/Plans of Operation

The Bank’s base case scenario forecasts 2022 Philippine GDP growth of 6.5%, an
improvement compared to the 5.6% growth reported in 2021. The acceleration in this year’s
GDP growth is underpinned by broadening consumption activity as government
policymakers signal a further easing of Covid-19 quarantine protocols. The 2022 GDP
outlook also incorporates expectations of continued resilience in the economic contributions
of overseas worker remittances and the business process outsourcing sector

A continuation of the Philippine economic recovery into this year, however, assumes that
expanding vaccine coverage reduces risks of severe outcomes from Covid-19 infections.
Otherwise, policymakers may be forced to delay the easing of restrictions. It is also assumed
that inflation headwinds are largely limited to the early part of 2022, with commodity price
base effects to eventually normalize over the course of the full year.

Downside risks that may hinder the recovery include potential delays in vaccine procurement
and the immunization timetable, vaccine resistant Covid-19 variants, and geopolitical events
that can cause unexpected spikes in commodity prices and accelerate inflation. The
upcoming May 2022 Philippine Presidential election may also raise uncertainties regarding
the trajectory of government economic policy.

3) Material Changes

(a) Any Known Trends, Events or Uncertainties (material impact on Liquidity)

None.

SEC FORM 17-A 92

(b) Internal and External Sources of Liquidity

The internal and external sources of liquidity are discussed under item 6(2) of SEC Form 17-A
of the Bank.

(c) Any Material Commitments for Capital Expenditure and Expected Funds

None.

(d) Any Known Trends, Events or Uncertainties (material impact on sales)

Trends, events or uncertainties, which can have a material impact on sales, are explained under
item 6(2) of SEC 17-A of the Bank.

(e) Causes for any Material Changes from Period to Period of Financial Statements

The causes for any material changes from 2018-2021 are explained in item 6(1) of SEC Form
17-A of the Bank.

(f) Seasonal Aspects that has material Effect on the Financial Statements

None.

Item 7. Financial Statements

The consolidated financial statements and schedules are filed as part of this Form 17-A. See
attachment for further information.

Item 8. Changes in and Disagreements with Accountants on Accounting and Financial

Disclosure

BDO's present external auditor, Punongbayan & Araullo, Grant Thornton will be recommended to
the shareholders for re-appointment as the external auditor for the ensuing year. Representatives of
the said firm are expected to be present at the annual meeting, and they will have the opportunity to
make a statement if they desire to do so and are expected to be available to respond to appropriate
questions from the shareholders.

Punongbayan & Araullo, Grant Thornton was first appointed external auditor of BDO in 2000 and
has not resigned, been dismissed, or its services ceased since its appointment. BDO has had no
material disagreement with Punongbayan & Araullo, Grant Thornton on any matter of accounting
principle or practices or disclosures in BDO's financial statements. To comply with the requirement
of SRC Rule 68 (3)(b)(ix) on the five (5) year Rotation of External Auditors Signing Partner, Mr.
Romualdo V. Murcia III has been the Signing Partner of the financial audit since 2020. Mr. Leonardo
D. Cuaresma, Jr., Partner of Punongbayan & Araullo, Grant Thornton, handled the financial audit
from years 2017-2019.

SEC FORM 17-A 93

The Audit Committee endorses for approval of Board of Directors (BOD) the appointment and
removal of BDO's internal and external auditor.

Audit and Audit-Related Fees

The aggregate fees billed for each of the last three (3) fiscal years for professional services rendered
by the external auditor amounted to P11,369,392.77 for the year 2021, P14,059,783.54 for the year
2020, and P18,085,815.89 for the year 2019. These fees cover services rendered by the external
auditor for audit of the financial statements of BDO and other services in connection with statutory
and regulatory filings for fiscal years 2021, 2020, and 2019.

Tax Fees and Other Fees

No other fees were paid to Punongbayan & Araullo, Grant Thornton for the last two (3) fiscal years.

It is the policy of BDO that all audit findings are presented to the Board Audit Committee which
reviews and makes recommendations to the Board on actions to be taken thereon. The Board of
Directors passes upon and approves the Audit Committee’s recommendations.

The members of the Audit Committee of BDO are as follows:

1. Jose F. Buenaventura - Chairman (Independent Director)

2. Jones M. Castro, Jr. - Member (Lead Independent Director until
April 23, 2021; Reclassified to Non-Executive Director )
3. Vicente S. Pérez, Jr. - Member (Independent Director)
4. Corazon S. de la Paz – Bernardo - Advisor
5. Christopher A. Bell-Knight - Advisor
6. Jesus A. Jacinto, Jr. - Advisor

Below is the attendance of the members for the Committee meetings held as of December 2021:
No. of Meetings Total No. of
Percentage
Attended Meetings
Jose F. Buenaventura 12 12 100%
Jones M. Castro, Jr. 12 12 100%
Vicente S. Pérez, Jr. 12 12 100%

SEC FORM 17-A 94

 PART III – CONTROL AND COMPENSATION INFORMATION

Item 9. Directors and Executive Officers of the Issuer

1) Directors and Executive Officers

The Board of Directors is empowered to direct, manage and supervise, under its collective
responsibility, the affairs of BDO. It is also responsible for the proper administration and
management of BDO’s trust business. The members of the Board are elected annually by
the stockholders to hold office for a term of one (1) year, and shall serve until their respective
successors have been elected and qualified.

The Board of Directors meets monthly to discuss BDO’s operations and approve matters
requiring its approval. Materials containing matters to be taken up during the Board meeting
are distributed to the directors at least five (5) days prior to the scheduled Board meeting.

Following is the list of the members of the Board, and the corporate officers and their
business experience during the past five (5) years:

Director Orientation and Continuing Education

All newly-elected directors are required to undergo an orientation program within three (3)
months from date of election. This is intended to familiarize the new directors on their
statutory/fiduciary roles and responsibilities in the Board and Committees, BDO’s strategic
plans, enterprise risks, group structures, business activities, compliance programs, Code of
Business Conduct and Ethics, Personal Trading Policy and Corporate Governance Manual.

All directors are also encouraged to participate in continuing education programs at BDO’s
expense to maintain a current and effective Board. In 2021, all directors of BDO Unibank
complied with the annual corporate governance training requirement of four (4) hours. Nine
(9) directors attended the in-house corporate governance seminar facilitated by Gartner
Executive Programs last September 1, 2021. It concentrated on the impact of geopolitics on
digital business, design and delivery for customer facing digital products, and digital
leadership. Two (2) directors attended the corporate governance seminar facilitated by the
Institute of Corporate Directors last September 30, 2021 with topics on sustainability, artificial
intelligence, and digitalization, among others. The Board also held strategic meetings and
received regular economic briefings and briefings on new regulatory issuances.

Below is the list of the members of the Board as of December 31, 2021, and the corporate
officers and their business experience during the past five (5) years:

Teresita T. Sy
Chairperson
Non-Executive Director
Filipino, 71 years old

SEC FORM 17-A 95

 Teresita T. Sy has been a member of the Board of Directors of BDO Unibank, Inc. (BDO)
since 1977, and currently serves as Chairperson of the Board. Concurrently, she serves as
the Chairperson and/or Director of various subsidiaries and affiliates of BDO: BDO Private
Bank, Inc., BDO Leasing & Finance, Inc., BDO Finance Corporation, BDO Capital &
Investment Corporation, BDO Foundation, Inc., and BDO Life Assurance Company, Inc. Ms.
Sy also serves as Advisor to the Board of BDO Network Bank, Inc.

Ms. Sy is the Vice Chairperson of SM Investments Corporation and Advisor to the Board of
SM Prime Holdings, Inc. She also sits as Chairperson of the Board of SM Retail, Inc. A
graduate of Assumption College with a degree in Bachelor of Arts and Science in Commerce
major in Management, she brings to the board her diverse expertise in banking and finance,
retail merchandising, mall and real estate development.

Jesus A. Jacinto, Jr.

Vice Chairman
Executive Director
Filipino, 74 years old

Jesus A. Jacinto, Jr. was elected to the Board of Directors of BDO Unibank, Inc. on May 25,
1996, and has since been Vice Chairman of the Board. He is concurrently the Chairman and
President of BDO Insurance Brokers, Inc. He also heads Jaces Corp. as Chairman and
President, and Janil Realty, Inc. and JAJ Holdings, Inc. as President. Formerly, he was
Director and Executive Vice President of CityTrust Banking Corporation; Director of CityTrust
Investments Philippines and CityTrust Finance Corporation; and Vice President and
Managing Partner of Citibank N.A. He holds a bachelor’s degree in Business Administration
from Fordham University in New York City and an MBA in International Business from
Columbia University, New York City.

Nestor V. Tan
President & Chief Executive Officer
Executive Director
Filipino, 64 years old

Nestor V. Tan is the President and CEO of BDO Unibank, Inc. He was elected to the Board
of Directors on June 27, 1998. In addition to his role in BDO Unibank, Inc., he also holds the
following positions in the BDO Group: Chairmanship of BDO Strategic Holdings, Inc. and
BDO Network Bank, Inc.; Vice chairmanships and/or directorships in BDO Leasing and
Finance, Inc., BDO Capital & Investment Corporation, BDO Finance Corporation, BDO Life
Assurance Company, Inc., BDO Private Bank, Inc., and SM Keppel Land, Inc.; and
Trusteeship of BDO Foundation, Inc.

In addition, he is currently the Chairman of the De La Salle University Board of Trustees;

Chairman of Bancnet, the operator of the electronic payment system, InstaPay, and the ATM
switching utility for Philippine banks; and Chairman of Mastercard Asia Pacific Advisory

SEC FORM 17-A 96

 Board. He is the past president and chairman, and current Director of the Bankers
Association of the Philippines.

Prior to joining BDO Unibank, Mr. Tan was Chief Operating Officer of the Financial
Institutions Services Group of BZW, the investment-banking subsidiary of the Barclays
Group. His banking career spans nearly four (4) decades and includes posts at global
financial institutions, among them Mellon Bank in Pittsburgh, PA; Bankers Trust Company
in New York, NY; and the Barclays Group in New York and London. He holds a bachelor’s
degree in Commerce from De La Salle University and an MBA from the Wharton School,
University of Pennsylvania.

Dioscoro I. Ramos
Lead Independent Director
Filipino, 63 years old

Dioscoro I. Ramos was elected to the Board of Directors of BDO Unibank, Inc. on January
9, 2016 and was appointed Lead Independent Director on April 23, 2021. Since 2011, Mr.
Ramos has been the Chief Investment Officer of RY&S Investments Ltd., Hong Kong. He
was Head of Asia Financials Investment Research of Goldman Sachs Asia, LLC, Hong Kong
from 1994 to 2011, and appointed Managing Director in 1998 and Partner in 2006. Prior to
that, he was with Mellon Bank, N.A. with postings in Pittsburgh, Philadelphia, New York, and
Hong Kong. Mr. Ramos is a Certified Public Accountant. He holds a Bachelor of Science
degree in Business Administration and Accountancy, cum laude, from the University of the
Philippines; and a master’s degree in Business from Wharton School, University of
Pennsylvania.

George T. Barcelon
Independent Director
Filipino, 72 years old

George T. Barcelon was elected Independent Director of BDO Unibank, Inc. on April 22,
2019. He is currently the Chairman of the Philippine Chamber of Commerce and Industry
(PCCI). He is the visionary behind Integrated Computer Systems, Inc. (ICS), one of the Top
1000 companies based in the Philippines, dedicated to providing effectual IT Solutions for
small to large-scale businesses and institutions. For 40 years, ICS has provided its
customers with technological expertise and quality services. As the president of a company
with 400 employees whose success depends on uncompromising leadership, imagination,
and careful quality control, Mr. Barcelon seeks to promote the values of Integrity,
Commitment, and Service Quality, the cornerstones upon which ICS was built. He is also a
member of the Rotary Club of Makati, Philippines; and a board member of the Cardinal
Medical Charities Foundation, Inc. in San Juan City, Philippines. Mr. Barcelon graduated
cum laude from De La Salle University, Manila and received a bachelor’s degree in Chemical
Engineering.

SEC FORM 17-A 97

 Christopher A. Bell-Knight
Non-Executive Director
Canadian, 77 years old

Christopher A. Bell-Knight was elected to the Board of Directors of BDO Unibank, Inc. on
July 27, 2013. Until his election as Director, he had been acting as Advisor to the Board of
BDO Unibank for more than two (2) years. He had also previously served as Director of BDO
Unibank from May 2005 until September 2010. He was an Independent Director of
Dumaguete City Development Bank of the Philippines from March 2007 to March 2013, and
currently serves as an Advisor to the Board. He was formerly a Director of Solidbank
Corporation and Vice President and Country Head of The Bank of Nova Scotia. Mr. Bell-
Knight has had over 40 years of banking experience in England, Canada, and Asia, 35 of
which were spent in credit and marketing. He is an Associate of the Chartered Institute of
Bankers – British; an Associate of the Institute of Canadian Bankers; and a Fellow of the
Institute of Corporate Directors. He studied at Frome Grammar School in Somerset,
England, and attended universities both in England and Canada for his Associate
qualifications in Banking.

Jose F. Buenaventura
Independent Director
Filipino, 87 years old

Jose F. Buenaventura was elected to the Board of Directors of BDO Unibank, Inc. on April
19, 2013. Since 1976, he has been a Senior Partner at Romulo Mabanta Buenaventura
Sayoc & de los Angeles Law Offices. He is President and Director of Consolidated Coconut
Corporation, Gladtobehome Inc., Glimpse of Negros Holdings, Inc., and Kahigayonan Corp.
He sits on the Boards of Directors of the following companies: BDO Securities Corporation
(Independent Director), BDO Finance Corporation (Independent Director), Eximious
Holdings, Inc., Cebu Air, Inc., GROW, Inc., GROW Holdings, Inc., Hicap Properties
Corporation, Himap Properties Corporation, La Concha Land Investment Corporation, Peter
Paul Philippines Corporation, Philippine First Insurance Co., Inc., Philplans First, Inc.,
Techzone Philippines, Inc., Total Consolidated Asset Management, Inc., Turner
Entertainment Manila, Inc., Phosephene Holdings, Inc., and Clinquant Holdings, Inc. Atty.
Buenaventura holds Bachelor of Arts and Bachelor of Laws degrees from Ateneo de Manila
University, and a Master of Laws Degree from Georgetown University Law Center in
Washington, D.C.

Jones M. Castro, Jr.

Non-Executive Director
Filipino and American, 72 years old

Jones M. Castro, Jr. was elected to the Board of Directors of BDO Unibank, Inc. on April 20,
2012. He was Lead Independent Director of BDO Unibank from December 7, 2013 to April
23, 2021. Mr. Castro has 48 years of banking expertise, with 41 years of international
banking experience. From 2009 to 2011, Mr. Castro was the Area Head for South and

SEC FORM 17-A 98

 Southeast Asia of Wells Fargo Bank, San Francisco. As Area Head, Mr. Castro had
responsibility for 12 countries and managed 11 overseas offices with a total of 102 team
members, and US$3 billion in loans. From 2006 to 2009, Mr. Castro was Regional Head for
Latin America 1, including the Caribbean, of the Wachovia Bank, Miami, and likewise had
responsibility for 25 countries, 3 overseas offices, 30 team members, and a US$1.8-billion
loan portfolio. From 2005 to 2006, he was Executive Vice President and International
Banking Group Head of the Union Bank of California, San Francisco. From 1990 to 1994,
he was Senior Vice President – Controller of Bank of California, San Francisco, and from
1994 to 1997, he was its Senior Vice President of Strategic Planning in Office of the
President. Mr. Castro is currently Trustee of PhilDev USA and PhilDev S & T Foundations,
and is a Fellow at the Institute of Corporate Directors. Mr. Castro obtained his bachelor’s
degree in Applied Mathematics in Economics and graduated cum laude from Harvard
University. He received his master’s degree in Business Administration, Accounting &
Finance from Stanford University.

Vicente S. Pérez, Jr.

Independent Director
Filipino, 63 years old

Vicente S. Pérez, Jr. was elected Independent Director of BDO Unibank, Inc. on April 22,
2019. He is currently an Independent Director of BDO Leasing and Finance, Inc. (BDOLF),
BDO Finance Corporation, and DoubleDragon Properties Corp. He is also a Non-Executive
Director of Singapore Technologies Telemedia Pte, Ltd. Mr. Pérez is currently the Chairman
of Alternergy Group, Philippine renewable power companies in wind, hydro and solar. In
September 2020, he was appointed Honorary Consul of Bhutan in the Philippines. He was
Philippine Energy Secretary from 2001 to 2005. Mr. Pérez briefly served in early 2001 as
Undersecretary at the Department of Trade and Industry and as Managing Head of the Board
of Investments. Prior to his government service, Mr. Pérez had 17 years banking experience,
first in Latin America debt restructuring at Mellon Bank in Pittsburgh, and later in debt capital
markets in emerging countries at Lazard in London, New York and Singapore. At 35, he
became General Partner at New York Investment Bank Lazard Frères as head of its
Emerging Markets Group. He was Managing Director of Lazard Asia in Singapore from 1995
until 1997, when he co-founded Next Century Partners, a private equity firm based in
Singapore. In 2005, he was briefly a government appointed director of Philippine National
Bank until its privatization. Mr. Perez obtained his master’s degree in Business
Administration from the Wharton Business School of the University of Pennsylvania in 1983
and a bachelor’s degree in Business Economics from the University of the Philippines in
1979. He was a 2005 World Fellow at Yale University where he lectured an MBA class at
the Yale School of Management.

Josefina N. Tan
Non-Executive Director
Filipino, 76 years old

SEC FORM 17-A 99

 Josefina N. Tan was Director of Banco de Oro Universal Bank (now BDO Unibank, Inc.) from
February 3, 2001 to August 2005. She then became a Director of Equitable PCI Bank, Inc.
from September 2005 until its merger with BDO Unibank in May 2007. Ms. Tan was re-
elected to the Board of Directors of BDO Unibank (then Banco de Oro – EPCI, Inc.) on July
27, 2007. Concurrently, she is Board Advisor of BDO Private Bank, Inc. She is also Chairman
of the Board of Miriam College and a Trustee of the Development Center for Finance and
the Laura Vicuña Foundation. She is also Treasurer of the Equestrian Order of the Holy
Sepulchre of Jerusalem. Ms. Tan served as President and Director of BDO Private Bank,
Inc. from August 29, 2003 to April 17, 2017. She was also Executive Vice President of the
former Far East Bank & Trust Co.; Director and President of FEB Leasing & Finance
Corporation; Executive Director and Trustee of FEB Foundation, Inc.; and Executive Vice
President of FEB Investments, Inc. until 2000. Ms. Tan holds a Bachelor of Arts degree with
a major in Communication Arts from Maryknoll College, and a master’s degree in Business
Administration from Ateneo Graduate School of Business.

Edmundo L. Tan
Corporate Secretary
Filipino, 76 years old

Edmundo L. Tan has been serving as Corporate Secretary of BDO Unibank, Inc. since July
27, 2007, and of BDO Private Bank, Inc. since February 2012. He was formerly Director of
BDO Leasing and Finance, Inc. and now serves as Advisor to the Board. Atty. Tan sits on
the Boards of Directors of the following companies: APC Group, Inc. (Director from 2000 to
present, Corporate Secretary from 2000 to 2016); Philippine Global Communications, Inc.
(Director from 2000 to present, Corporate Secretary from 2000 to 2010); and Aragorn Power
and Energy Corporation (Director from 2005 to present, Corporate Secretary from 2005 to
2012). Atty. Tan is also currently a Director of PRC MAGMA Resources, Inc. (2010 to
present) and of Ortigas Land Corporation (formerly OHI, July 2012 to present). He was
elected Director of Sagittarius Mines, Inc. in March 2016, and Director of Concrete
Aggregates Corporation on December 12, 2019. In July 2017, he was elected President of
the Philippine Dispute Resolution Center, Inc. (PDRCI), a non-stock, non-profit organization
which he co-founded. Atty. Tan is the Managing Partner of Tan Acut Lopez & Pison Law
Offices (1993 to present). Formerly, he was a Senior Partner in Ponce Enrile Cayetano
Reyes & Manalastas Law Offices; a Partner in Angara Abello Concepcion, Regala & Cruz
Law Offices; and an Associate in Cruz Villarin Ongkiko Academia & Durian Law Offices. Atty.
Tan holds a Bachelorof Arts degree from De La Salle College, Bacolod, and a bachelor’s
degree in Law from the University of the Philippines

Sabino E. Acut, Jr.

Assistant Corporate Secretary
Filipino, 71 years old

Sabino E. Acut, Jr. was appointed Assistant Corporate Secretary of BDO Unibank, Inc. on
July 27, 2007, a position he currently holds. He is presently a Senior Partner and Head of
the Litigation Department of Tan Acut Lopez & Pison Law Offices. He was a former Senior

SEC FORM 17-A 100

 Partner and Head of the Litigation Department of Ponce Enrile Cayetano Reyes &
Manalastas Law Offices (PECABAR) and, before that, a Partner of Angara Abello
Concepcion Regala & Cruz Law Offices (ACCRA). At various times, he was Corporate
Secretary of Boulevard Holdings, Inc., Puerto Azul Golf & Country Club, Philippine Hospital
Association, and Eastern General Reinsurance Corporation; Legal Counsel of Alabang
Country Club; Trustee of Makati Law Foundation; and President of the Legal Management
Council of the Philippines. He was Journal Editor of the 1971 Constitutional Convention,
Special Assistant to the Director of the Bureau of National and Foreign Information, and
Confidential Attorney to former Supreme Court Justice Cecilia Muñoz Palma. He is a
member of the Integrated Bar of the Philippines and the Philippine Bar Association. He is
currently a Director of Philippine Global Communications, Inc., Ashdale Holdings, Inc., and
Primtown Center Holdings, Inc. He was the Corporate Secretary of the then Equitable PCIB
Bank, Inc. until its merger with the Bank. He holds the degrees of Bachelor of Arts, Magna
Cum Laude, from Mindanao State University; Bachelor of Laws, Cum Laude, from the
University of the East; and Master of Laws from the University of Pennsylvania.

Alvin C. Go
Assistant Corporate Secretary
Filipino, 60 years old

Alvin C. Go is a Senior Vice President for the Legal Services Group of BDO Unibank, Inc.
He was also appointed as Assistant Corporate Secretary and Alternate Corporate
Information Officer on October 1, 2015. Prior to joining BDO, he was the Chief Legal Counsel
of Philippine National Bank from 2003 to 2012. He was an Associate Attorney of Salonga,
Ordonez, Yap, Corpuz Padlan & Associates Law Offices from 1985 to 1989. He served as
Prosecution Attorney from 1989 to 1990 and State Prosecutor of the Department of Justice
from 1990 to 1993. He was a Senior Partner at Go, Cojuangco, Mendoza, Ligon and Castro
Law Offices from 1994 to 1999, and Senior Partner at Go and Castro Law Offices from 1999
to 2003. He obtained his Bachelor of Arts, Major in Political Science, from the Immaculate
Concepcion College, Ozamiz City and his Bachelor of Laws from Misamis University.

The independent directors of the Bank are George T. Barcelon, Jose F. Buenaventura, Jr.,
Vicente S. Pérez, Jr., and Dioscoro I. Ramos.

Role of the Chairperson and President

The Board Chair and President collectively are responsible for the leadership of the
company. The Chair’s primary responsibility is for leading the Board and ensuring its
effectiveness while the President is responsible for running the Bank’s business.

The roles of the Board Chair and the Bank President are separate and distinct from each
other to achieve a balance of authority, clear accountability, and capacity for independent
decision-making by the Board.

SEC FORM 17-A 101

 Senior Executive Officers of the Bank

The members of senior management, subject to control and supervision of the Board,
collectively have direct charge of all business activities of BDO. They are responsible for the
implementation of the policies set by the Board. The following is a list of BDO’s key officers
as of December 31, 2021, and their business experiences during the past five (5) years:

Joseph Albert Lim Gotuaco, 56, Filipino, is Senior Executive Vice President and Head of
the Bank’s Central Operations Group. He joined BDO Unibank, Inc. on February 1,
2019. Mr. Gotuaco started his banking career at Chemical Bank in New York in 1986, as a
trader and risk manager for fixed income products. In 1994, he was based in Hong Kong for
J.P. Morgan, and was responsible for corporate, financial institution, and sovereign clients
in the Philippines and in Southeast Asia. In 2002, he joined Credit Suisse in its Fixed Income
Division. In 2005, he joined Merrill Lynch as a Managing Director in its Fixed Income,
Currencies and Commodities (“FICC”) Division, and served on the firm’s Asia-Pacific
Operating Committee. In 2009, Mr. Gotuaco was based in Singapore as Partner and
Managing Director in a Singapore-based investment vehicle of the Brunei government,
where he helped manage investments in general aviation (Piper Aircraft) and related in-
house financing programs (Piper Capital). Mr. Gotuaco joined Bank of the Philippine Islands
(“BPI”) in 2013. Until 2016, he served as Executive Vice President & Chief Financial Officer;
from 2016 to 2018, he was Head of Retail Banking. He also served in BPI’s management,
asset & liability management, credit, and operating & IT risk management committees. Mr.
Gotuaco obtained his B.S. Economics degree, summa cum laude, in finance and marketing
in 1986, from the Wharton School at the University of Pennsylvania. He obtained his MBA
from Harvard Business School in 1994.

Rolando C. Tanchanco, 59, Filipino, is Senior Executive Vice President for Consumer
Banking Group. He holds a Bachelor’s degree in Business Economics from the University of
the Philippines. He obtained his MBM at the Asian Institute of Management. Mr. Tanchanco
joined BDO to head the BDO’s Consumer Lending which has since been renamed
Consumer Banking to include Digital Banking and Payment Channels. Prior to his joining
BDO, Mr. Tanchanco was President of Philam Savings Bank and Head of AIG Credit Card.
He is currently a Director of BDO Insurance Brokers, Inc., BDO Network Bank, Inc., and
Trans Union Phils.

Walter C. Wassmer, 64, Filipino, is Senior Executive Vice President and Head of the
Institutional Banking Group of BDO Unibank, Inc. He is also a Director of BDO Leasing and
Finance, Inc., BDO Finance Corporation, and BDO Capital & Investment Corporation.
Previously, Mr. Wassmer was the Chairman and Officer-In-Charge of BDO Elite Savings
Bank, Inc., formerly GE Money Bank, Inc. (A Savings Bank), and held directorships in MMPC
Auto Financial Services Corporation, MDB Land, Inc., Mabuhay Vinyl Corporation, and
Banco De Oro Savings Bank, Inc. (formerly Citibank Savings, Inc.). He holds a Bachelor of
Science degree in Commerce from De La Salle University.

SEC FORM 17-A 102

 Jaime C. Yu, 63, Filipino, is Senior Executive Vice President. He holds a Bachelor of Arts
degree in Economics from De La Salle University and is a MBA graduate from the Ateneo
de Manila University. He has extensive experience in commercial, corporate, and investment
banking from the International Corporate Bank and Union Bank of the Philippines, where he
held various positions up to his appointment as First Vice President and Region Head for
the Manila-Pasay area. He joined BDO in December 1997 and is currently the Group Head
of Branch Banking where he manages the entire branch network.

Stella L. Cabalatungan, 57, Filipino, is Executive Vice President. She holds a Bachelor of
Science degree in Marketing Management from De La Salle University. Prior to joining BDO,
she was Vice President of Banco Santander Philippines, Inc., and Head of the Personal
Investment Banking Group from 2000 to 2003. She was also Vice President of Citibank, N.A.
from 1998 to 2000 where she spent fifteen (15) years in retail and priority banking in
Singapore and the Philippines, her last assignment being the Citigold Priority Banking Head.
She is presently seconded to BDO Private Bank, Inc. as Executive Vice President–Wealth
Management Head.

Gerard Lee B. Co, 62, Filipino, is Executive Vice President and Deputy Group Head for
Institutional Banking. He is a Director of Markham One Development Corp. He served as
Director of PCI Leasing and Finance, Inc. and PCI Capital Corporation from 2002-2005 and
of BDO Leasing and Finance, Inc. from 2010-2012. He graduated from the University of San
Carlos with a Degree in Bachelor of Science in Commerce Major in Banking and Finance.
He attended the Advanced Management Program for International Bankers at the Wharton
School of the University of Pennsylvania, U.S.A. He likewise completed the Program for
Executive Development at IMD in Laussane, Switzerland. He joined the Bank in October
1993 as Vice President for Visayas Division.

Lucy Co Dy, 66, Filipino, is Executive Vice President and Comptroller. She concurrently
holds the position of Director of BDO Life Assurance Company, Inc.; Director of BDO Remit
Limited and BDORO Europe, Ltd.; Director and Treasurer of BDO Strategic Holdings, Inc.;
and Trustee and Treasurer of BDO Foundation, Inc. She holds a Bachelor’s degree in
Accounting from the University of Santo Tomas.

Eduardo V. Francisco, 60, Filipino, is Executive Vice President. He is President/Director of

BDO Capital & Investment Corporation, the investment banking arm of BDO Unibank, Inc.
and Chairman of Averon Holdings Corp. He sits on several boards such as the Development
Center for Finance, CIBI Foundation, Shareholders Association of the Philippines
(SharePhil), International School of Manila, UP College of Business Alumni Association,
Financial Executives Institute of the Philippines (FINEX) Foundation and Valle Verde
Country Club, Inc. He is also a member of Makati Business Club (MBC), and the POLO
Triathlon Team. He is on the Capital Markets committees of the Bankers Association of the
Philippines and Philippine Stock Exchange. He is also in the Listings committee of the
Philippine Dealing and Exchange Corporation. He is the former Chairman of BDO Nomura
Securities, Inc. and Chairman for the International Association of Financial Executives
Institutes (IAFEI). He was the Co-Chairman of the Capital Market Development Council

SEC FORM 17-A 103

 (CMDC) of the Philippines, Vice Chairman of the Integrity Initiative, and has been the
President of the Management Association of the Philippines (MAP), FINEX, Wharton-Penn
Club, Federation of Valle Verde Associations, First Valle Verde Association Inc. and BDO
Securities Corporation. Mr. Francisco has worked with other financial institutions in New
York and Hong Kong such as Bank of America and Barclays Bank. He holds a MBA from
the Wharton School of the University of Pennsylvania and Bachelor’s degree in Business
Administration from the University of the Philippines. He is a recipient of Financial
Management Excellence from the University of the Philippines and the Distinguished
Alumnus Award from the U.P. College of Business Administration. He was honored by
BizNewsAsia as one of the Nation Builders and was an Asia Leaders Award’s Mentor of the
Year finalist.

Jesus Antonio S. Itchon, 60, Filipino, is Executive Vice President of BDO Unibank, Inc.
since September 15, 2017. He is seconded to BDO Network Bank, Inc. (BDONB) and serves
as President and Vice Chairman of BDONB. He has over thirty (30) years of experience in
the financial services industry. Prior to joining the Bank, he was Executive Vice President of
Property Company of Friends, Inc. and Williamton Financing Corporation since 2016, and
Independent Director of Paymaya Phils. Inc. since 2015. Mr. Itchon also worked with Citibank
N.A. Philippines as Managing Director where he held various senior leadership positions
from 1986 to 2015 including Citi Country Compliance Officer, President of Citibank Savings
and Country Head of Global Transaction Banking. He graduated from the De La Salle
University with a degree in Bachelor of Arts in Economics and from Johnson Graduate
School of Management, Cornell University with a Master’s Degree in Business
Administration.

Jeanette S. Javellana, 62, Filipino, is Executive Vice President and Head for Commercial
Banking Metro Manila. She joined the Bank in October 2001.

Ma. Corazon A. Mallillin, 59, Filipino, is Executive Vice President of BDO Unibank, Inc. She
is currently the Deputy Group Head of Branch Banking Group and has been with BDO
Unibank for more than fifteen (15) years. She joined BDO Unibank in March 2005 as Region
Head of Branch Banking. Prior to that, she was Senior Vice President for Branch Banking of
Maybank, Phils. She was formerly Senior Vice President of Asiatrust Bank from 1998 to
2002 and Assistant Vice President of PCIBank from 1982 to 1998. Atty. Mallillin holds a
Bachelor of Laws degree and a Bachelor of Arts degree in Economics from the University of
the Philippines.

Dalmacio D. Martin, 59, Filipino, is Executive Vice President of BDO Unibank, Inc. He has
been with the Bank for more than ten (10) years. He is currently the Bank’s Treasurer of the
Bank’s Treasury Group. He holds a Bachelor's Degree in B.A Political Science from the U.C
Berkeley University and a Masters in Management from the Arthur D. Little MEI.

Edwin Romualdo G. Reyes, 63, Filipino, is Executive Vice President of BDO Unibank, Inc.
and Group Head for the Transaction Banking Group. Mr. Reyes has more than thirty (30)
years of experience in the banking industry. He was previously Managing Director and

SEC FORM 17-A 104

 Global Head of Depositary Receipts (DR) at Deutsche Bank Trust Company Americas, New
York, USA (Deutsche Bank) from 2006 to 2014. Mr. Reyes also served as Director and
Global Head of Strategic Initiatives and Channel partners from 2001 to 2006 and Director &
Global Head of Intermediaries, Corporate Trust & Agency Services from 1999 to 2001. Prior
to that, he was Vice President, Capital Markets Trust Services at IBJ Whitehall Financial
Services, New York, USA from 1998 to 1999. Mr. Reyes also serves on the board of BDO
Network Bank, Inc., as non-Executive Director. He holds a Master’s Degree in Business
Administration, major in Finance/Money and Financial Markets from Columbia University,
Graduate School of Business in New York, USA. Mr. Reyes graduated Cum Laude from the
University of the Philippines, with a degree of Bachelor of Science in Industrial Engineering
and Operations Research.

Luis S. Reyes, Jr., 62, Filipino, is Executive Vice President for Investor Relations and
Corporate Planning. He is concurrently a Director of BDO Strategic Holdings, Inc. and
Chairman of Nashville Holdings, Inc. He is also a Director and Treasurer of BDO Leasing
and Finance, Inc. and BDO Rental, Inc., and Treasurer of BDO Finance Corporation. He
holds a Bachelor of Science degree in Business Economics from the University of the
Philippines. He was First Vice President of Far East Bank & Trust Company, Trust Banking
Group before joining BDO.

Cecilia Luz L. Tan, 61, Filipino, currently holds the position of Executive Vice President and
Deputy Head of Institutional Banking Group. Prior to joining BDO, she was Director and
President of BPI Capital Corp. and Director – Chairman of BPI Securities Corp. She has
over 40 years experience covering the fields of corporate, investment and private banking.
She holds a degree in Bachelor of Science in Business Management from Ateneo de Manila
University and post graduate in Advanced Management Program in Harvard Business
School.

Evelyn L. Villanueva, 63, Filipino, is Executive Vice President of BDO’s Risk Management
Group, and is BDO’s Chief Risk Officer. She holds a Bachelor degree in Statistics from the
University of the Philippines. She obtained her Master in Business Management (“MBM”)
degree from the Asian Institute of Management. She has over forty (40) years of banking
experience in corporate banking and enterprise-wide risk management covering credit,
market, liquidity, interest rate and operational risk management. She started out as a
management trainee in Citytrust Banking Corporation and was connected with HSBC as
Senior Vice President for Credit Risk Management before joining BDO.

Albert S. Yeo, 63, Filipino, is an Executive Vice President at BDO Unibank, Inc. since
January 3, 2017. Mr. Yeo, prior to joining the Bank, had been with Merrill Lynch & Co. for 17
years, last as a Senior Financial Advisor at their Manhattan Beach Office in Los Angeles,
California. He was also connected with UBS Securities and Prudential Securities, Inc. (now
Wells Fargo Advisors) in various capacities in the financial services industry. Prior to that,
he was connected with IBJ Schroder Bank and Trust (now Mizuho Bank) in their Capital
Markets Group in New York City for 5 years. Before his MBA, he spent 2 years at Rizal
Commercial Banking Corporation as a Corporate Banking officer at their Binondo area

SEC FORM 17-A 105

 headquarters. Mr. Yeo earned his MBA in Finance from the Wharton School at the University
of Pennsylvania. He finished his undergraduate degree at the Ateneo de Manila University,
BS Management Engineering with Magna Cum Laude distinction and was the Departmental
Awardee of his class.

Rafael G. Ayuste, Jr., 57, Filipino, is Senior Vice President of BDO Unibank, Inc. He has
been with BDO Unibank for more than seven (7) years. He is currently the Trust Officer and
Head of BDO Trust and Investments Group and was the Trust Officer and Head of Wealth
Advisory and Trust Group of BDO Private Bank, Inc. He has more than thirty-five (35) years
banking experience, with twenty-seven (27) years in trust banking. He holds a Bachelor’s
Degree in Business Administration from University of Sto. Tomas, a Master’s Degree in
Business Administration (Nominee) from De La Salle University and an Executive Master’s
Degree (Nominee) in Business Economics from University of Asia and the Pacific.

Frederic Mark S. Gomez, 59, Filipino, is Senior Vice President of BDO Unibank, Inc. He
joined the Bank on November 15, 2017 and was appointed as Head of Information
Technology Group and Member of the IT Steering Committee, effective March 1, 2018. Prior
to joining the Bank, Mr. Gomez was Vice President and Chief Information/Technology Officer
for Information Technology, Asia Pacific of S&P Global, Inc. (Singapore & Tokyo, Japan)
from January 2011 to January 2017. He held various global head positions at Standard &
Poor’s (New York, USA) since 1996 before becoming its Vice President and Global IT Head
for Sales and Marketing Systems in February 2008 up to January 2011. He graduated from
the University of Santo Tomas with a degree in Bachelor of Science in Business
Administration.

Lazaro Jerome C. Guevarra, 55, Filipino, is Senior Vice President. He is the Chief of Staff
for the Office of the President and concurrently the Head for the Corporate Group,
administratively overseeing the Corporate Secretary’s Office, Anti-Money Laundering Unit,
Legal Services, Compliance, Internal Audit, and Information & Cyber Security Office. Prior
to this, he was the Head of Advisory and Mergers & Acquisition Team of BDO Capital &
Investment Corporation and was the President of BDO Securities Corporation. He is
currently the Chairman/Director of BDO Remit (Canada), Ltd., BDO Remit (Japan), Ltd., and
BDO Remit (USA), Inc. He is a Director of BDO Strategic Holdings, Inc., BDORO Europe
Ltd., Averon Holdings Corp., SM Keppel Land, Inc., NorthPine Land, Inc., and Nashville
Holdings, Inc. He is also a Trustee and Corporate Secretary of BDO Foundation, Inc. Mr.
Guevarra is a graduate of the University of the Philippines – School of Economics and has
had more than thirty-two (32) years of experience in banking, financial analysis, and mergers
& acquisition.

Manuel Z. Locsin, Jr., 64, Filipino, is Senior Vice President/Officer-in-Charge (OIC) of BDO
Finance Corporation. He was seconded from BDO Unibank to BDO Finance last year, May
2021, and appointed by the Board of Directors of BDO Finance on May 1, 2021. In addition
to his assignment, he is concurrently Director and OIC of BDO Leasing and Finance, Inc.
and BDO Rental, Inc. Prior to joining BDO Finance, he was Senior Vice President with
Corporate Banking Group of BDO Unibank. He has over twenty-five (25) years of banking

SEC FORM 17-A 106

 and credit lending experience. He holds a Bachelor of Science Degree in Commerce from
the De La Salle University.

Estrellita V. Ong, 66, Filipino, joined BDO in 2012 as Senior Vice President for the Internal
Audit Division heading Branches Audit. In April 2013, the Board approved and confirmed her
designation as the Unibank Group’s Chief Internal Auditor (CIA). She was formerly
connected with Security Bank Corporation retiring as its CIA. Prior to being a CIA, she had
held position in Security Bank as Assistant Controller and Executive Assistant to the
Chairman handling the Centro Escolar University Finance portfolio. She was also formerly a
Director of the 6776 Ayala Condo Corp. and Corporate Secretary of the Eastman Enterprises
Corp. Prior to joining the bank mainstream, she had held Controllership position in Evergreen
Shipping Corp.’s General Agent’s office and Pioneer Intercontinental Insurance. She had
varied experience also in manufacturing being General Manager and Treasurer of several
Import/Export businesses subcontracting for branded US luggage and apparels. She is a
Certified Public Accountant graduating from the University of the East – Recto with a
Bachelor of Science degree in Business Administration.

Evelyn C. Salagubang, 58, Filipino, is Senior Vice President. She assumed the position of
Group Head for Human Resources (HR) of the Bank in July 2011. She was formerly the
Head of Human Resources of American Express Savings Bank, with oversight HR role over
the American Express International, Inc., and American Express Bank Philippines. Prior to
joining BDO, she was the HR Manager for Kraft Foods Philippines, Inc. She holds a degree
in Psychology from Assumption College and completed a Diploma Program in Human
Resource Management from the same institution.

Maria Theresa L. Tan, 53, Filipino, is Senior Vice President. She is General Manager of
BDO Insurance Brokers, Inc. (BDOI). She has had more than two (2) decades of experience
in sales, marketing/product management, and general management in the consumer,
services, and insurance industries. She graduated from the Ateneo de Manila University with
a degree in Business Management, Minor in Marketing. Prior to joining BDO, she was the
General Manager of International SOS, Philippines, Inc. She joined the Bank in July 2009.

Federico P. Tancongco, 61, Filipino, is Senior Vice President. He joined BDO Unibank in
October 2005 and was then seconded to BDO Private Bank, Inc. as Head of the Compliance
and Legal Department. His secondment was recalled and since July 1, 2017 serves as Chief
Compliance Officer of BDO Unibank. Prior to this, he served as trial attorney and solicitor
with the Office of the Solicitor General for six (6) years before joining the Rizal Commercial
Banking Corporation where he was Trust Legal Counsel for the Trust and Investments
Division for twelve (12) years. He also serves as trustee in religious non-profit corporations,
namely: Far East Broadcasting Corporation, WorldTeach Ministries Philippines, Inc., and
Pamilya Muna Pilipinas, Inc. He holds a Bachelor’s Degree in Philosophy and Letters from
De La Salle University (DLSU) and a Law degree from the University of the Philippines
College of Law.

SEC FORM 17-A 107

 Renato A. Vergel de Dios, 68, Filipino, is the President & CEO of BDO Life Assurance
Company, Inc. (BDO Life) and a Director of BDO Life Board since October 2009. He also
serves as a member of the Board of Trustees of the Insurance Institute for Asia and the
Pacific. Mr. Vergel de Dios has been in the life insurance business for over forty-five (45)
years. Prior to joining BDO Life, he served as CEO for Manulife Philippines Inc. and
Executive Vice President, Sales and Operations, for the Philippine American Life Insurance
Company, Inc. He holds a Bachelor’s Degree in Mathematics from Ateneo de Manila
University and an MS Management (Sloan) degree from Stanford Graduate School of
Business.

Senior Credit Executives

The following are the Senior Credit Executives functioning exclusively as members of the
Bank’s Executive Committee and/or Management Credit Committee:

Julie Y. Chua, 70, Filipino, is a Senior Credit Executive of BDO Unibank, Inc. She was
appointed on January 1, 2022. She was an Executive Vice President since 2008. She holds
a Bachelor’s degree in Commerce, major in Banking and Finance, Cum Laude, from the
University of Santo Tomas. She has more than twenty-five (25) years of experience in branch
banking and lending business. Previous to her assignment, she was connected with BPI,
Far East Bank & Trust Company and Producers Bank.

Nilo L. Pacheco, Jr., 66, Filipino, is a Senior Credit Executive of BDO Unibank, Inc. He was
appointed on February 3, 2020. He has had forty-seven (47) years of work experience in the
area of finance that included twenty-eight (28) years in the banking industry. Prior to joining
BDO Unibank, Mr. Pacheco was with Sterling Bank of Asia since 2010 where he was a
member of the Board of Directors, and Chairman of its Trust, Corporate Governance, and
Risk Management Committees, and previously member also of its Executive, Bids and
Awards, and Information Technology Committees. He was also concurrently with the De La
Salle group from 2011-2019 as Vice President for Finance of both De La Salle College of St.
Benilde and De La Salle University and held senior positions in De La Salle Philippines, La
Salle Antipolo, Catholic Educational Association of the Philippines, and a member of the
Board of Directors of First Metro Asset Management Company and Maybank ATR Kim Eng
Securities Inc. Prior to 2011, he held senior positions in Union Bank of the Philippines, United
Coconut Planters Bank, International Exchange Bank, and Export and Industry Bank. Mr.
Pacheco obtained his Bachelor of Arts degree in Mathematics, magna cum laude, from De
La Salle University, took Masters units in Business Administration in the University of the
Philippines, and finished the Advanced Management Program of Harvard Business School.

Mario B. Palou, 68, Filipino, is Senior Credit Executive of BDO Unibank, Inc. since March
1, 2018. He has more than thirty-five (35) years experience in the financial industry. He was
Executive Vice President and Head of Middle Market Group of the Development Bank of the
Philippines since February 2014. He also worked with Bank of the Philippine Islands as
Senior Vice President (SVP) and Co-Division Head of Corporate Banking Group (CBG) for
Top Corporate Companies from 2000 to 2003 and as SVP and Head of CBG from 2006 to

SEC FORM 17-A 108

 2013. He was an SVP and Department Head of Commercial Loans of BPI Family Savings
Bank from 2003-2006. Prior to that, he was with Far East Bank and Trust Company, and
FEB Investments, Inc. Mr. Palou graduated from San Beda College with a degree in
Bachelor of Arts in Economics.

Edmundo S. Soriano, 66, Filipino, is Senior Credit Executive and is a Member of BDO
Unibank’s Executive Committee and Management Credit Committee. For the period of July
2017 to December 2018, he was EVP and Deputy Head, Institutional Banking Group at BDO
Unibank, with direct responsibility for International Desks, Financial Institutions and Global
Operations as well as a member of BDO’s Management Credit Committee. Previous to this,
he was Executive Vice President and Group Head for Corporate Banking from July 2004 to
June 2017. Before joining BDO, Mr. Soriano was a Vice President at JP Morgan Chase
where he was a member of the Senior Management Teams of Hong Kong and China
Branches. His last assignment in Hong Kong exposed him to Asia-Pacific regional
responsibilities doing Corporate Investment Banking. Prior to this, he was an Assistant Vice
President at First Chicago Leasing and Equipment Credit Corp., an affiliate of First National
Bank of Chicago. He holds a Bachelor’s degree in Economics (Honors) from Ateneo de
Manila University and an MBA (with Distinction) from Adelphi University, New York, U.S.A.
where he was a Rotary Foundation International Fellow. He attended continuing education
programs at INSEAD, University of California at Berkeley and American Institute of Banking.
In 2014, Mr. Soriano was President of the Financial Executives Institute of the Philippines
(FINEX). For 2015, he was Chairman of FINEX Research and Development Foundation, Inc.

NOTE: BDO is not dependent on the services of any particular employee and does not have
any special arrangements to ensure that any employee will remain with BDO and will not
compete upon termination.

Board and Senior Management Performance

The Board, through the Corporate Governance Committee, undertakes the evaluation of its
performance as a collective body, its Committees and senior management to determine
whether they are functioning effectively, pinpoint areas for improvement and ensures that
the President is providing effective leadership to the Group.

The assessment criteria used cover among others the areas of leadership, stewardship,
review and approval of strategic and operational plans, annual budgets, focus on strategic
and long-term issues, monitoring of financial performance, management succession
planning, integrity of financial reporting, review of the Bank’s ethical conduct, defining roles
and monitoring activities of committees.

It also conducts the Director peer evaluation survey intended to encourage improved
performance and effectiveness of directors by identifying areas that need
improvement. Each director is requested to rate their colleagues on the Board using the
prescribed rating scale and questions. The assessment criteria used include among others
the director’s understanding of the strategy and vision, organizational structure and culture,

SEC FORM 17-A 109

 business and regulatory environments, responsibilities as Director, accountability for his/her
boardroom actions, contribution to board discussions, independent thinking, strategic
insights and direction, active participation in committee meetings, time and commitment to
board and committee duties, and finally, his/her overall contribution to the functioning of the
Board.

Survey questionnaires were sent to all members of the Board including Advisers. Upon
submission of accomplished forms, the external facilitator, in coordination with the Corporate
Governance Officer, tabulates the responses and prepares the final report to the Corporate
Governance Committee. In turn, the Committee reviews and approves the report and
submits to the Board for appropriate action. The Board then issues a resolution noting the
results of the evaluation and recommendations stated in the final report.

2) Significant Employees

BDO’s senior executive officers are enumerated under Item 9.1, above. BDO has no
employee who is not an executive officer expected to make a significant contribution to
BDO’s business.

3) Family Relationships

Mr. Gabriel U. Lim, Senior Vice President, and Stella L. Cabalatungan, Executive Vice
President, are siblings.

4) Involvement of directors/executive officers in legal proceedings

To BDO’s knowledge, none of the directors or executive officers is named or is involved

during the last five (5) years in any legal proceedings which will have any material effect on
BDO, its operations, reputation, or financial condition.

To BDO’s knowledge, none of its directors and senior executives have been subject of the
following legal proceedings during the last five (5) years:

1. bankruptcy petition by or against any business of which such director was a general
partner or executive officer either at the time of bankruptcy or within two (2) years prior
to that time;
2. a conviction by final judgment, in a criminal proceeding, domestic or foreign, or being
subject to a pending criminal proceeding, domestic or foreign;
3. to any order, judgment, or decree, not subsequently reversed, suspended or vacated,
of any court of competent jurisdiction, domestic or foreign, permanently or temporarily
enjoining, barring, suspending or otherwise limiting his involvement in any type of
business, securities, commodities or banking activities;
4. being found by a domestic or foreign court of competent jurisdiction (in a civil action),
the Commission or comparable foreign body, or a domestic or foreign Exchange or
other organized trading, market or self-regulatory organization, to have violated the

SEC FORM 17-A 110

 securities or commodities law or regulation, and the judgment has not been reversed,
suspended or vacated.

Item 10. Executive Compensation

Disclosure and Transparency

The Bank recognizes the need to report material information in a complete, accurate and timely
manner thru easily accessible medium of communications. Significant items that are disclosed
include the following:

A. Executive Compensation Policy

It is the objective of BDO to attract, motivate and retain high-performing executives necessary
to maintain its leadership position in the industry. To be competitive in the marketplace, BDO
offers a remuneration package composed of fixed salary, benefits and long-term incentives.
Below are the compensation details of the directors and key executive officers of BDO.

1) President and four (4) most highly compensated executive officers:

Annual Other Annual

in million pesos Year
Compensation Compensation
2022 (estimate) 201.57 none
President and four (4)
most highly compensated 2021 197.62 none
executive officers
2020 196.31 none
Year Name Position/Title
Nestor V. Tan President and CEO
Walter C. Wassmer SEVP
2021 Jaime C. Yu SEVP
Rolando C. Tanchanco SEVP
Joseph A. Gotuaco SEVP
Nestor V. Tan President and CEO
Walter C. Wassmer SEVP
2020 Jaime C. Yu SEVP
Rolando C. Tanchanco SEVP
Joseph A. Gotuaco SEVP

The above compensation includes the usual bonus paid to bank officers. Except for salaries,
allowances, retirement benefits provided under BDO’s retirement plan, and company-wide
benefit extended to all qualified employees under BDO’s stock option plan, there is no
separate stock option, stock warrant or other security compensation arrangement between
BDO and its individual officers.

SEC FORM 17-A 111

2) Compensation of Directors and Officers as a Group

Salary Other Annual

in million pesos Year
Bonuses Compensation
Aggregate Officers (from
senior vice presidents) & 2022 (estimate) 954.38 none
Directors
2021 944.93 none

2020 943.73 none

B. Directors’ Fees

Each director shall receive a reasonable per diem for attendance in every Board meeting. The
President is authorized to fix and/or increase the fees and other remuneration of any Director
or any other officer of BDO as may be deemed necessary, subject to Board approval. The
Board of Directors of BDO approves all compensation and remuneration schemes for all the
executive directors and senior officers of BDO. As provided by law, the total compensation of
directors shall not exceed ten percent (10%) of the net income before income tax of BDO during
the preceding year.

Each director receives a per diem allowance of P10,000 for attending board meetings and
P5,000 for committee meetings. There is no distinction on the fee for a committee chairman and
member. The above table contains the details of the compensation of directors and officers of
BDO. In view of possible security risks, BDO opted to disclose these on an aggregate basis as
a group. Other than these fees, the non-executive directors do not receive any share options,
profit sharing, bonus or other forms of emoluments.

BDO may grant to the directors any compensation other than per diems by the approval of the
shareholders representing at least a majority of the outstanding capital stock.

Each member of the Board of Directors received the following as Directors for the year 2021:

Name of Director Amount

Barcelon, George T. P 5,422,222.19
Bell-Knight, Christopher A. 5,688,888.91
Buenaventura, Jose F. 5,688,888.91
Castro, Jones M. Jr. 5,800,000.03
Jacinto, Jesus A. Jr 2,720,000.00
Perez, Vicente S. Jr. 5,633,333.34
Ramos, Dioscoro I. 5,599,999.99
Sy, Teresita T. 10,257,777.77
Tan, Josefina N. 5,248,888.87

SEC FORM 17-A 112

 Tan, Nestor V. 2,740,000.00
Teodoro, Gilberto C. Jr. 4,238,888.91
Total P 59,038,888.92

Abovementioned amounts include total fees and per diems received by the Directors for their
attendance in meetings of the Board.

The Compensation Committee determines and proposes for Management and Board approval
the salaries and compensation schemes for all executive directors and senior officers of BDO.
The Compensation Committee meets at least once a year to discuss matters pertaining to the
determination of salaries and compensation schemes and proposals for any changes in the
remuneration of executive officers of BDO.

The members of BDO’s Compensation Committee are as follows:

1. Gilberto C. Teodoro, Jr. - Chairman (Independent Director)
2. Dioscoro I. Ramos - Member
3. Teresita T. Sy - Member

Below is the attendance of the members for the Committee meetings held as of December 2021:

Meetings
Total No. of Meetings Percentage
Attended
Gilberto C. Teodoro, Jr. * N/A No meeting held during term
Dioscoro I. Ramos 2 2 100%
Teresita T. Sy 2 2 100%
* Chairman until October 7, 2021

3) Employment Contracts and Termination of Employment and Change-in-Control

Arrangements

There are no special contracts of employment between BDO and the named directors and
executive officers, as well as special compensatory plans or arrangements, including
payment to be received from BDO with respect to any named director or executive.

Item 11. Security Ownership of Certain Beneficial Owners and Management

1) Security Ownership of Certain Record/Beneficial Owners

As of December 31, 2021, the following are known to BDO to be directly or indirectly
the record and/or beneficial owners of more than 5% of BDO’s voting securities:

SEC FORM 17-A 113

 Name of Beneficial
Name, address of record
Owner and
Title of Class owner and relationship with Citizenship No. of Shares Held Percent
Relationship with
BDO
Record Owner
Common SM Investments Corp. Sy Family
10th Floor One E-Com (Substantial Filipino 1,787,180,649 * 40.75%
Center, Harbour Drive, Mall Stockholders)
of Asia Complex, CBP-I-A,
Pasay City/ Parent Company

Common PCD Nominee Corp. (Non-

Filipino) Various Foreign 1,099,584,793 25.07%
29th Floor, BDO Equitable stockholders
Tower, 8751 Paseo de Roxas,
Makati City/Various
stockholders
Common PCD Nominee Corp. (Filipino)
29th Floor, BDO Equitable Various Filipino 759,527,805** 17.32%%
Tower, 8751 Paseo de stockholders
Roxas, Makati City/ Various
stockholders
Common Multi-Realty Development SM Investments
Corporation Corp. Filipino 291,513,036 * 6.65%
10th Floor L.V. Locsin Building, (Subsidiary)
6752 Ayala Ave., Makati City/
Stockholder
Common Sybase Equity Investments
Corporation Various corporate Filipino 240,010,292 * 5.47%
10th Floor L.V. Locsin Building, stockholders
6752 Ayala Ave., Makati City/
Stockholder
TOTAL (COMMON) 4,177,816,575 95.26%

* Inclusive of PCD-lodged shares of SM Investments Corporation (SMIC), Multi-Realty

Development Corporation (MRDC) and Sybase Equity Investments Corporation (SEIC)
** Exclusive of PCD-lodged shares of SMIC, MRDC and SEIC.

Preferred Sybase Equity Investments

Corporation Various corporate Filipino 391,400,000 76.00%
10th Floor L.V. Locsin stockholders
Building, 6752 Ayala Ave.,
Makati City/ Stockholder
Preferred SM Investments Corp. Sy Family
10th Floor One E-Com (Substantial Filipino 123,600,000 24.00%
Center, Harbour Drive, Mall Stockholders)

SEC FORM 17-A 114

 of Asia Complex, CBP-I-A,
Pasay City/ Parent Company
TOTAL (PREFERRED) 515,000,000 100.00%

The persons authorized to vote the shares of SM Investments Corporation, Multi-

Realty Development Corporation and Sybase Equity Investment Corporation are
Ms. Teresita T. Sy and/or Mr. Henry T. Sy, Jr. and/or Mr. Harley T. Sy.

As of December 31, 2021, the following are known to BDO as the PCD
participants holding 5% or more of BDO’s voting securities:

Percent of
Member Name and Address No. of Shares
Shareholdings
BDO Sec BDO Securities Corporation 338,402,568 7.72%
Clients’ Accounts 33rd Floor BDO Towers Valero
8741 Paseo de Roxas, Salcedo Village,
Makati City 1226
SCBK Clients’ Standard Chartered Bank
Account Standard Chartered Bank Building 6788 289,005,008 6.59%
Ayala Avenue, Makati City
TOTAL 627,407,576 14.31%

• The PCD, being a nominee corporation, only holds legal title, not beneficial
ownership of the lodged shares. The beneficial owners, such as the clients of PCD,
have the power to decide how their shares are to be voted.

(NOTE: There are no voting trust shares or shares issued pursuant to a Voting Trust
Agreement registered with BDO nor has there been any change in control of BDO. BDO is
also not aware of any contractual arrangement or otherwise between its shareholders and/or
third parties, which may result in change in control of BDO).

2) Security Ownership of Management

As of December 31, 2021, the total number of shares owned by the directors and
management of the registrant as a group unnamed is 30,869,521 common shares, which is
equivalent to 0.7039% of the total outstanding common capital stock of the registrant. The
Bank’s directors and officers own the following common shares of the Bank:

No. of Shares No. of Percent of

Nature of
(beginning Shares Class
Beneficial
Title of Name of Beneficial balance as of (as of (Shares as
Ownership Position Citizenship
Class Owner January 1, December of
(Direct (D)/
2021) 31, 2021) December
Indirect (I))
31, 2021)
Common Teresita T. Sy 489,238 - D Chairperson Filipino 394,947 506,421 0.0115%

SEC FORM 17-A 115

 No. of Shares No. of Percent of
Nature of
(beginning Shares Class
Beneficial
Title of Name of Beneficial balance as of (as of (Shares as
Ownership Position Citizenship
Class Owner January 1, December of
(Direct (D)/
2021) 31, 2021) December
Indirect (I))
31, 2021)
17,183 - I
Common Jesus A. Jacinto, D Vice Chairman Filipino 802 107,102 0.0024%
Jr.
Common George T. D Independent Filipino 201,001 201,001 0.0046%
Barcelon Director
Common Christopher A. D Non-Executive Canadian 10,623 10,623 0.0002%
Bell-Knight Director
Common Jose F. D Independent Filipino 70,001 72,401 0.0017%
Buenaventura Director
Common Jones M. Castro, D Non-Executive Filipino & 12,001 12,001 0.0003%
Jr. Director American
Common Vicente S. Pérez, D Independent Filipino 30,000 30,000 0.0007%
Jr. Director
Common Dioscoro I. Ramos D Lead Independent Filipino 203,800 203,800 0.0046%
Director
Common Josefina N. Tan D Non-Executive Filipino 710,608 715,958 0.0163%
Director
Common Nestor V. Tan D President, CEO & Filipino 15,448,629 15,749,369 0.3591%
Director
Common Joseph Albert L. D SEVP Filipino 400,000 470,000 0.0107%
Gotuaco
Common Rolando C. D SEVP Filipino 566,783 316,783 0.0072%
Tanchanco
Common Walter C. D SEVP Filipino 498,339 498,339 0.0114%
Wassmer
Common Jaime C. Yu D SEVP Filipino 440,284 606,934 0.0138%
Common Stella L. D EVP Filipino 263,100 317,100 0.0072%
Cabalatungan
Common Gerard Lee B. Co D EVP Filipino 399,482 411,482 0.0094%
Common Lucy C. Dy D EVP & Filipino 614,989 620,339 0.0141%
Comptroller
Common Eduardo V. D EVP Filipino 768,779 768,779 0.0175%
Francisco
Common Jesus Antonio S. D EVP Filipino 6,000 6,000 0.0001%
Itchon
Common Jeanette S. D EVP Filipino 311,156 311,156 0.0071%
Javellana
Common Ma. Corazon A. D EVP Filipino 116,232 145,232 0.0033%
Mallillin
Common Dalmacio D. Martin D EVP & Treasurer Filipino 159,595 171,595 0.0039%
Common Edwin Romualdo D EVP Filipino 20,000 20,000 0.0005%
G. Reyes
Common Luis S. Reyes, Jr. D EVP Filipino 747,930 869,580 0.0198%
Common Cecilia Luz L. Tan D EVP Filipino 0 13,854 0.0003%
Common Evelyn L. D EVP & Chief Risk Filipino 689,677 695,027 0.0158%
Villanueva Officer

SEC FORM 17-A 116

 No. of Shares No. of Percent of
Nature of
(beginning Shares Class
Beneficial
Title of Name of Beneficial balance as of (as of (Shares as
Ownership Position Citizenship
Class Owner January 1, December of
(Direct (D)/
2021) 31, 2021) December
Indirect (I))
31, 2021)
Common Albert S. Yeo D EVP Filipino 1,000 1,000 0.0000%
Common Noel L. Andrada D SVP Filipino 138,100 204,100 0.0047%
Common Maria Carina S. D SVP Filipino 93,620 131,720 0.0030%
Antonio
Common Rafael G. Ayuste, D SVP & Trust Filipino 20,000 32,000 0.0007%
Jr. Officer
Common Ferdinand C. D SVP Filipino 31,300 39,700 0.0009%
Bacungan
Common Melanie S. Belen D SVP Filipino 187,604 253,604 0.0058%
Common Maria Carla Josefa D SVP Filipino 0 0 0.0000%
G. Campos
Common Edmund S. Chan D SVP Filipino 29,500 29,500 0.0007%
Common Romeo Ramon M. D SVP Filipino 4,785 4,785 0.0001%
Co, Jr.
Common Jonathan T. Cua D SVP Filipino 0 0 0.0000%
Common Ramon S. David D SVP Filipino 41,591 106,591 0.0024%
Common Montiel H. Delos D SVP Filipino 103,800 115,800 0.0026%
Santos
Common Noel D. Dizon D SVP Filipino 233,837 233,837 0.0053%
Common Gwyneth M. Entao D SVP Filipino 47,877 86,277 0.0020%
Common Belinda C. D SVP Filipino 88,564 74,264 0.0017%
Fernandez
Common Andre M. Flores D SVP Filipino 4,000 4,000 0.0001%
Common Gina Marie C. D SVP Filipino 0 0 0.0000%
Galita
Common Geneva T. Gloria D SVP Filipino 103,969 103,969 0.0024%
Common Alvin C. Go D SVP & Assistant Filipino 190,800 232,800 0.0053%
Corporate
Secretary
Common Jonathan Cua Bian D SVP Filipino 5 8,405 0.0002%
T. Go II
Common Marilyn K. Go D SVP & Deputy Filipino 60,800 72,800 0.0017%
Treasurer
Common Sonia Maribel D. D SVP Filipino 160,687 172,687 0.0039%
Go
Common Frederic Mark S. D SVP Filipino 15,000 15,000 0.0003%
Gomez
Common Maria Lourdes D SVP Filipino 0 0 0.0000%
Donata C.
Gonzales
Common Richard Emil R. D SVP Filipino 0 0 0.0000%
Grau
Common Lazaro Jerome C. D SVP Filipino 22,518 48,598 0.0011%
Guevarra
Common Enrico R. D SVP Filipino 230,348 277,698 0.0063%
Hernandez

SEC FORM 17-A 117

 No. of Shares No. of Percent of
Nature of
(beginning Shares Class
Beneficial
Title of Name of Beneficial balance as of (as of (Shares as
Ownership Position Citizenship
Class Owner January 1, December of
(Direct (D)/
2021) 31, 2021) December
Indirect (I))
31, 2021)
Common Geraldine C. D SVP Filipino 77,503 108,803 0.0025%
Liggayu
Common Gabriel U. Lim D SVP Filipino 202,169 214,169 0.0049%
Common Juan Sabino P. D SVP Filipino 230,480 238,880 0.0054%
Lizares
Common Joseph Rhoderick D SVP Filipino 103,619 103,619 0.0024%
B. Lledo
Common Manuel Z. Locsin, D SVP Filipino 64,863 66,863 0.0015%
Jr.
Common Rhodora M. Lugay D SVP Filipino 0 20,000 0.0005%
Common Jose Paolo D SVP Filipino 10,100 18,500 0.0004%
Enrique A.
Magpale
Common Roy Allan V. D SVP Filipino 125,172 133,572 0.0030%
Magturo
Common Manuel Patricio C. D SVP Filipino 0 12,000 0.0003%
Malabanan
Common Angelita C. D SVP Filipino 111,411 165,411 0.0038%
Manulat
Common Edgardo R. D SVP Filipino 81,103 49,503 0.0011%
Marcelo, Jr.
Common Jose Noel M. D SVP Filipino 269,890 238,740 0.0054%
Mendoza
Common Tomas Victor A. D SVP Filipino 23,560 48,960 0.0011%
Mendoza
Common Ramon T. Militar D SVP Filipino 140,000 124,000 0.0028%
Common Aurea Imelda S. D SVP Filipino 262,689 221,489 0.0051%
Montejo
Common Jaime M. Nasol D SVP Filipino 86,800 78,800 0.0018%
Common Carlo B. Nazareno D SVP Filipino 0 0 0.0000%
Common Cristina G. Ngo D SVP Filipino 178,996 190,996 0.0044%
Common Frederico Rafael D SVP Filipino 0 12,000 0.0003%
D. Ocampo
Common Estrellita V. Ong D SVP & Chief Filipino 0 0 0.0000%
Internal Auditor
Common Maria Rhoda B. D SVP Filipino 45,807 80,807 0.0018%
Orsolino
Common Jose Alfredo G. D SVP Filipino 123,755 129,605 0.0030%
Pascual
Common Jose Eduardo A. D SVP Filipino 0 5,850 0.0001%
Quimpo II
Common Rogel A. Raya D SVP Filipino 158,234 181,034 0.0041%
Common Maria Nannette R. D SVP Filipino 359,247 359,247 0.0082%
Regala
Common Gerardo Clemente D SVP Filipino 0 0 0.0000%
C. Rivera

SEC FORM 17-A 118

 No. of Shares No. of Percent of
Nature of
(beginning Shares Class
Beneficial
Title of Name of Beneficial balance as of (as of (Shares as
Ownership Position Citizenship
Class Owner January 1, December of
(Direct (D)/
2021) 31, 2021) December
Indirect (I))
31, 2021)
Common Susan Audrey P. D SVP Filipino 43,355 73,755 0.0017%
Rivera
Common Evelyn C. D SVP Filipino 72,454 122,254 0.0028%
Salagubang
Common Cerwina Elenore A. D SVP Filipino 51,110 73,410 0.0017%
Santos
Common Roberto Ramon L. D SVP Filipino 0 0 0.0000%
Santos
Common Ma. Theresa S. D SVP Filipino 62,556 56,556 0.0013%
Simbul
Common Paul John Siy D SVP Filipino 0 0 0.0000%
Common Howard Lincoln D. D SVP Filipino 0 0 0.0000%
Son
Common Noel B. Sugay D SVP Filipino 78,928 95,928 0.0022%
Common Robert W. Sy D SVP Filipino 99,241 92,931 0.0021%
Common Edwin R. D SVP Filipino 804 4 0.0000%
Tajanlangit
Common Christopher D SVP Filipino 0 0 0.0000%
Raymund P. Tan
Common Maria Theresa L. D SVP Filipino 94,195 106,195 0.0024%
Tan
Common Federico P. D SVP & Chief Filipino 0 0 0.0000%
Tancongco Compliance
Officer
Common Reynaldo A. D SVP Filipino 104,802 116,802 0.0027%
Tanjangco, Jr.
Common Edna R. Tarroza D SVP Filipino 59,152 63,552 0.0014%
Common Dante R. Tinga, Jr. D SVP Filipino 0 0 0.0000%
Common Myla R. Untalan D SVP Filipino 9,000 10,450 0.0002%
Common Sharon Mae S. D SVP Filipino 0 77,402 0.0018%
Vicente
Common Carol P. Warner D SVP Filipino 0 0 0.0000%
Common Nilo L. Pacheco, D Senior Credit Filipino 0 0 0.0000%
Jr. Executive
Common Mario B. Palou D Senior Credit Filipino 0 0 0.0000%
Executive
Common Edmundo S. D Senior Credit Filipino 223,520 373,800 0.0085%
Soriano Executive
Common Julie Y. Chua D Senior Credit Filipino 576,961 582,311 0.0133%
Executive
Common Edmundo L. Tan D Corporate Filipino 101,312 101,312 0.0023%
Secretary
Common Sabino E. Acut, Jr. D Asst. Corporate Filipino 20,000 20,000 0.0005%
Secretary
Total 30,232,466 30,869,521 0.7039%

SEC FORM 17-A 119

 Directors and officers are required to report to BDO any acquisition or disposition of BDO’s
shares within three (3) business days from the date of the transaction. As prescribed under
Philippine Stock Exchange (PSE) Disclosure Rules, BDO shall disclose to the PSE any
acquisition or disposition of BDO’s shares by its directors and officers within five (5) trading
days from the transaction. Moreover, beneficial ownership of BDO shares by the directors
and officers is also required to be reported within ten (10) calendar days from the date of
initial acquisition or within ten (10) calendar days after the close of each calendar month, if
there has been any change in such ownership during the month, to the Securities and
Exchange Commission.

(Note: There are no voting trust shares or shares issued pursuant to a Voting Trust
Agreement registered with the Bank nor has there been any change in control of the Bank.
The Bank is also not aware of any contractual arrangement or otherwise between its
shareholders and/or third parties, which may result in change in control of the Bank.)

Item 12. Certain Relationships and Related Transactions

In the ordinary course of business, BDO has loan and other transactions and arrangements involving
BDO’s products and services, with its subsidiaries and affiliates and with certain directors, officers,
stockholders and related interests (DOSRI) and parties. These loans and other transactions and
arrangements involving BDO’s products and services, are made on substantially the same terms as
those given to other individuals and businesses of comparable risks.

Policies and procedures have been put in place to manage potential conflicts of interests arising from
related party transactions, such as credit accommodations, products or services extended by BDO
to directors or officers in their personal capacity or to their company and related interests and parties.
BDO’s Executive Committee approves these transactions. Where appropriate, the Related Party
Transactions Committee endorses related party transactions to the Board. These transactions are
then elevated to the Board for independent review and confirmation. All directors, except the
interested party, could scrutinize the details of the transactions to ensure that these are done on an
arms-length basis and in accordance with regulations. The details of the deliberations are included
in the minutes of the Board and Board Committee meetings. Approved related party transactions are
properly tagged for monitoring and reporting of exposures. BDO then submits the significant related
party transactions to the BSP where BSP approval is required.

The Related Party Transactions Committee is chaired by Atty. Gilberto C. Teodoro, Jr. (Independent
Director). Its members are Mr. Jones M. Castro, Jr.* (Director) and Mr. Jose F. Buenaventura
(Independent Director).

Below is the attendance of the members for the Committee meetings held as of December 2021:

No. of Meetings Total No. of

Percentage
Attended Meetings

Gilberto C. Teodoro, Jr. ** 10 12 83.33%

SEC FORM 17-A 120

 Jones M. Castro, Jr. 12 12 100.00%
Jose F. Buenaventura 11 12 100.00%
* Lead Independent Director until April 23, 2021
** Chairman until October 7, 2021

The General Banking Law and BSP regulations limit the amount of the loans granted by BDO to
each subsidiary or affiliate, which are not related interests of the directors, officers and/or
stockholders of BDO, to not more than 10% of BDO’s networth, with a further ceiling of not more
than 5% of BDO’s networth for unsecured loans. Total outstanding loans to all subsidiaries and
affiliates shall not exceed 20% of BDO’s networth.

The amount of individual loans to DOSRI, of which 70% must be secured, should not exceed the
amount of the deposit and book value of their investment in BDO. In the aggregate, loans to DOSRI
generally should not exceed the total capital funds or 15% of the total loan portfolio of BDO,
whichever is lower.

For the period ended December 31, 2021, there were no material self-dealings or related party
transactions by any director which require disclosure.

Please refer to Notes 2.17 and 27 of the Notes to Financial Statements. Said Financial Statements
are attached to this Annual Report.

SEC FORM 17-A 121

 PART IV – CORPORATE GOVERNANCE

Item 13. Corporate Governance

Corporate governance in BDO is about effective oversight, strict compliance with regulations, and
sustainable value creation to promote the best interest of its various stakeholders.

BDO Unibank, Inc. affirms its deep commitment to the highest standards of corporate governance
practice firmly anchored on the principles of accountability, fairness, integrity, transparency and
performance consistently applied throughout the institution. BDO’s good market reputation has been
built on the solid foundation of an ethical corporate culture and responsible business conduct,
underpinned by a well-structured and effective system of governance.

BDO complies, where appropriate, with the SEC Code of Corporate Governance for Publicly-Listed
Companies and with the Enhanced Corporate Governance Guidelines for BSP-Supervised Financial
Institutions. It follows relevant international best practices of corporate governance issued by globally
recognized standards-setting bodies such as the Organization for Economic Cooperation and
Development (OECD) and the ASEAN Corporate Governance Scorecard (ACGS) which serve as
essential points of reference.

This report describes the highlights of our corporate governance practices throughout the financial
year ended December 31, 2021.

1. Composition of the Board – The Board is composed of 11 seats, with one vacancy as of December 31, 2021
reserved for an independent director1. The members of the Board are all professionals with various expertise in
fields relevant to BDO's business and strategic plans such as banking, accounting and finance, law, merchandise
marketing, strategy formulation, bank regulations, information technology, sustainability, and risk management. It
is led by a Non-Executive Chairperson with five Independent Directors, three Non-Executive Directors, and two
Executive Directors who are the Vice Chairman and the President & CEO.

The present composition of the Board exceeds the minimum regulatory standards which require that independent
and non-executive directors account for the majority. Independent and Non-Executive Directors of the Bank
comprise 82% (nine of 11) of the Board. With five of 11 Board seats allocated for independent directors, the Bank
goes beyond the 1/3 minimum requirement of the Bangko Sentral ng Pilipinas and the Securities Exchange
Commission. Independent Directors comprised the majority (six of 11 or 54.50%) of the Board until April 20212,
conforming with international best practices.

The Board is aided by four advisors who are considered as integral parts of the Board and whose influence are
akin to directors. Their opinions and recommendations are taken into consideration by the Board members. The
presence of a female Board advisor provides an independent view of the Bank and complements the two female
non-executive directors.

1
Atty. Gilberto C. Teodoro, Jr., Independent Director, resigned from the Board of Directors on October 7,
2021. His replacement, Mr. Vipul Bhagat, Independent Director, was appointed by the Board of Directors
on January 8, 2022.
2
Former Lead Independent Director, Mr. Jones M. Castro, Jr., was reclassified to non-executive director on
April 23, 2021, in order to comply with the nine-year term limit for independent directors.

SEC FORM 17-A 122

2. Composition of the Board Committees –Independent directors chair eight of nine board committees, namely Risk
Management, Audit, Corporate Governance, Related Party Transactions, IT Steering, Nominations,
Compensation, and Trust. This provides independent and objective judgment on significant corporate matters and
ensures that key issues and strategies are objectively reviewed, constructively challenged, thoroughly discussed
and rigorously examined.

3. Audited financial statements for calendar year 2020 were disclosed to the public on February 26, 2021, 57 days
from year end, following the best practice recommendation of the ASEAN Corporate Governance Scorecard of
within 60 days from year-end, for the past seven (7) years;

4. Executive Sessions of Independent/Non-Executive Directors - A regular meeting is held by Independent and

Non-Executive Directors (INED) with the heads of the control functions (i.e. Chief Risk Officer, Chief
Compliance Officer, and Chief Internal Auditor) as well as the external auditor, without the presence of
management or any bank executive, to discuss various matters or issues outside the Audit Committee and
Risk Management Committee meetings. The meeting is chaired by the Lead Independent Director. In 2021,
the INED conducted three (3) sessions and the results of these sessions were discussed with the Bank’s
Executive Directors in three (3) separate sessions.

5. Annual Board performance self-assessment - A yearly self-assessment is conducted focusing on the performance
of the Board, directors, Committees and senior management, through the Corporate Governance Committee, using
an approved set of questionnaires. The performance evaluation process begins with sending out customized Board
Evaluation Questionnaires to each director and advisor. They are required to complete the questionnaire and
explain the rationale of their response. The results of which are tabulated and consolidated. In 2021, the Corporate
Governance Committee endorsed to the Board the continuous engagement of the services of an external facilitator
for its yearly self-assessment. To the Committee, engaging an independent party every year, rather than every
three years as recommended by the Securities and Exchange Commission, provides more governance inputs to
the Board and allows comparability and continuity of aspects examined.

This report sets out the main corporate governance practices of the Bank in relation to the following
OECD guiding principles:
Rights and Equitable Treatment of Stakeholders
Shareholders
The Bank respects the inherent rights and recognizes the roles of various stakeholders in accordance
with law. To this end, it has put in place various governance practices, policies and programs for the
protection of shareholders' rights and the promotion for exercising those rights in accordance with
OECD principles, such as the right to buy, sell or transfer securities held, the right to receive dividend,
the right to vote for the appointment of the external auditor, the right to participate in decision-making
for corporate matters, the right to propose agenda item in the shareholders' meeting and the right to
attend the shareholders' meeting. As a matter of policy, all stockholders (retail and institutional) on
record are encouraged to attend, personally, by proxy, or by remote communication, the annual
stockholders' meeting to ensure their participation and active involvement in the affairs of the Bank.
Shareholders will be given equal opportunities to raise questions, make suggestions and
recommendations pertaining to the operations of the Bank. They can vote by remote communication
or in absentia, or assign proxies to vote on their behalves if shareholders cannot attend the
stockholders' meeting.
For the convenience of shareholders to exercise their right to attend the stockholders' meeting, the
venue, date, time and agenda of the annual meeting, explanation of each agenda item requiring
shareholders' approval, method of voting results will be announced in advance. In 2021, the Notice

SEC FORM 17-A 123

of Annual Stockholders’ Meeting, which contains details and rationale for each agenda item, was
released through the Definitive Information Statement on March 26, 2021, or 28 days prior to the
date of the Meeting.
The Annual Stockholders' Meeting was held on April 23, 2021 and was attended by the Board
Chairperson, President & Chief Executive Officer, and all Directors. The shareholders were allowed
to cast their votes on each nominee director and on each agenda item presented to them for
approval. They were also given the opportunity to ask questions, express opinions and make
suggestions on various issues. Please see the minutes of the 2021 Annual Stockholders' Meeting
for detailed Questions and Answers, the voting results showing the Approving, Dissenting and
Abstaining Votes cast by the shareholders on each agenda item in www.bdo.com.ph/company-
disclosures/stockholders-meetings
A quarterly declaration of cash dividends is approved by the Board of Directors and is immediately
disclosed to the Philippine Stock Exchange (PSE) and the Securities and Exchange Commission
(SEC). This disclosure is readily available at the websites of the PSE and the SEC, as well as of the
Bank. During the Annual Stockholders' Meeting, the President reports to the stockholders the
financial performance of the Bank for the year. In addition, the Bank files with the PSE and SEC
quarterly reports on its financial performance.
The Bank recognizes that all shareholders should be treated fairly and equally whether they are
controlling or minority, local or foreign. To ensure this, the Amended By-Laws of the Bank provides
that all shares in each class should carry the same rights and any changes in the voting rights must
be approved by the shareholders. The Bank accepts the votes cast by nominees and custodians in
behalf of the beneficial owners as valid. Shareholders may exercise their right of appraisal in case
of amendment to the Articles of Incorporation that has the effect of changing or restricting their rights.
Investors
BDO adopts a pro-active relationship with its stockholders through its Investor Relations’ (IR)
comprehensive engagement program. IR articulates the Bank’s strategic direction as well as financial
and operating results by joining conferences and roadshows in key global financial markets and
conducting various one-on-one meetings, conference calls and briefings with institutional investors,
analysts, and credit rating agencies. IR also reaches out to retail investors by participating in retail
conferences and roadshows organized by local brokers. The Bank has in the past likewise joined
virtual investor conferences catering to American Depositary Receipts (ADR) investors in the United
States. From time to time, IR is joined by other members of the Senior Management team in meetings
and corporate access activities in order to impart more insights on BDO’s operations.
Relevant information is also shared through official disclosures posted via PSE Edge and company
website.
Investor Relations accomplished the following in 2021 amid the continuing impact of the COVID-19
pandemic:
1. Investor Engagement

Amidst continuing travel and mobility restrictions, IR engaged about 500 investors in 2021, through
participation in virtual conferences, investor calls, as well as one-on-one conference calls.

SEC FORM 17-A 124

 IR apprised investors of the following developments in the Bank in 2021:
• The Bank’s improved financial performance vis-à-vis 2020, anchored on its strong core
businesses and normalized provisions. Asset quality remained manageable and was
adequately provided for;
• Ongoing digital initiatives on sustained IT investments, and new product launches; and. More
positive macroeconomic and business outlook on rising vaccination rates and gradual economic
reopening.

2. Analyst briefings

IR held virtual briefings on the following dates during which the Bank’s senior management presented the
Bank’s financial results, operations updates, and recent developments:

February 26, 2021 – covering full year-2020 results

August 2, 2021 – covering 1H 2021 results
October 25, 2021 – covering 9M 2021 results

Video coverage of the analysts’ briefings last year are posted under the Investor Relations section of the
Bank’s website.

3. Coordination on Environmental, Social and Governance (ESG)

IR coordinated and interacted with the Bank’s ESG Team (composed of representatives from
Sustainability/Compliance, Sustainable Finance Desk, Risk Management, Human Resources, Corporate
Secretary’s Office, Central Operations, Marketing Communications, among others) to address queries
from third party ESG ratings agencies (e.g., Sustainalytics, S&P Global, MSCI, FTSE, Vigeo, among
others), regulators, analysts, and investors.

IR also coordinated the Bank’s participation in the Asia Transition Finance Study Group arranged by
Mitsubishi UFJ Financial Group (MUFG) that tackled taxonomy and challenges in transition finance across
Asia and other markets. The Study Group is composed of more than 20 leading Asian and international
institutions, including commercial banks, development banks/Export Credit Agencies and public agencies.

4. Regular feedback from investors and analysts to Senior Management and the Board.

IR regularly conveyed feedback from investors and analysts to Senior Management and to the Board for
a better appreciation of market sentiment towards the Bank, through periodic updates on shareholder
developments, industry analysis reports, and write-ups and comments about the Bank.

5. Coordination with other units for the disclosure of public information about the Bank

IR recognizes the need for accurate and updated information of the Bank’s financial condition and all
matters affecting the Bank. It coordinates with the Corporate Secretary’s Office and Marketing
Communications Group (MCG) to ensure the timely disclosure and posting of material and relevant
information.

IR directly liaises with the Bank’s stock transfer agent on matters relating to stockholders' claims for cash
dividends, updating of contact information and requests for documents and/or information regarding their
stockholdings.

Shareholders can request relevant information from the Corporate Secretary or Investor Relations Unit
through the contact details provided in the Bank's official website. The minutes of the 2021 Annual
Stockholders' Meeting is available in our corporate website at www.bdo.com.ph./company-
disclosures/stockholders-meetings.

SEC FORM 17-A 125

Customers
Our clients are our most valuable asset and we are truly grateful for their patronage. BDO is
committed to meet their needs by providing them with high quality customer service and relevant
products and services.
BDO is committed to treat clients fairly. The minimum standards to ensure that clients are treated
fairly are the following:
• Communications are fair and not misleading.
• Clients are given clear and concise information, including the risks involved, before they enter into financial
products and services.
• Products and services are suitable and appropriate, taking into account the needs of the clients, their financial
and risk profile and objectives.
• Complaints should be handled in a prompt, friendly, fair and effective manner.

We scrupulously comply with the regulations on financial consumer protection in the Philippines, the
Bank has monitored and profiled the client inquiries/requests/complaints together with
resolutions/actions taken. The Bank has been proactive in resolving complaints. The Bank has
established a Consumer Assistance Management System to address customer concerns. Effective
recourse is one of the five (5) areas of BSP’s Consumer Protection Framework, and BDO has been
seriously devoting resources to ensure that customer issues are resolved in a timely manner. It has
also implemented the Framework and Policy on Social Media Risk Management.
The Bank has in place a Data Privacy Management Program (DPMP), which serves as the
framework for protecting the data privacy rights of the Bank’s data subjects, to ensure compliance
with the Philippine Data Privacy Act (PDPA). The Bank appointed a Data Protection Officer (DPO)
who is registered with the National Privacy Commission (NPC). Compliance Officers for Privacy
(COPs) in each business and support units (BSUs) were appointed to ensure proper coordination in
the implementation of any initiatives related to the DPMP. The required data processing systems
were also registered with the NPC. The Data Privacy Policy, Privacy Statement, and Breach
Reporting Procedures were established, including the templates for Consent, Data Sharing
Agreement, and Outsourcing Agreement. Furthermore, Privacy Impact Assessments (PIAs) by
critical units were completed to assess privacy risks in order to ensure that the necessary security
measures are in place to mitigate risks to personal data and uphold data privacy rights of individuals.
Privacy risk monitoring was also enhanced using the existing risk management tools of the Bank. To
ensure continuous education within the Bank, the Data Privacy Training and Awareness Program
has been rolled out, consisting of regular conduct of classroom and e-learning courses and email
blasts of learning snippets.
The Bank has also intensified data privacy awareness with the in-depth training for COPs and
complaints management training for Customer Contact Center personnel. The Risk Management
Committee (RMC) is regularly updated on the progress of the Bank's compliance with the PDPA. In
view of its commitment to comply with data privacy requirements, and as part of its continuing
assessment and development efforts, the Bank actively participates in data privacy forums of the
NPC and liaises with other DPOs of the Bankers Association of the Philippines (BAP).
In living the “We Find Ways” service credo, BDO is committed to meet the clients’ needs by providing
them with high quality customer service and relevant products and services. It continues to invest

SEC FORM 17-A 126

heavily in technology to improve products and processes. Our clients can look forward to a more
convenient banking experience as the Bank exerts efforts to leverage the use of digital technology
in making available its products and services across various channels.
As of December 31, 2021, BDO Unibank Group had 1,193 branches (including two foreign
branches), 4,152 automated teller machines (ATMs) and 624 cash accept machines (CAMs). This is
a milestone affirming the Bank’s commitment to make banking reachable to Filipinos and our way of
creating opportunities for more people to experience the rewards of having a bank that takes care of
their financial needs.

Creditors, Counterparties and Suppliers

The Bank is committed to meet its contractual obligations with all creditors and counterparties based
on the covenants agreed with them. The Bank did not issue any bonds in 2021. Its US$300 Million
5-Year Senior Notes issued in October 2016 matured and was redeemed in October 2021.
In the conduct of its business dealings, the Bank undertakes to honor all binding trade-related
agreements and conditions on the basis of widely accepted industry practices, mutual understanding
and cooperation with counterparties. In accordance with law, they will be given priority in payment of
the Bank's obligations in the normal course of business and in the event of liquidation.
For suppliers, it has established appropriate policies that govern the vendor accreditation, selection,
bidding and approval processes. The Bank strictly prohibits the solicitation and acceptance, directly
or indirectly, of any gift (including entertainment services or activities), gratuity, commissions or any
form of payment from clients, business partners, suppliers and third party service providers in
exchange for any unnecessary or favorable treatment.

Employees
The Bank considers its Human Resources as extremely valuable. To ensure the protection and well-
being of the employees, the Bank has implemented policies and programs that cover the following
areas:
a. Code of Conduct and Business Ethics

As a financial institution, BDO believes that practicing right conduct and ethical behavior
inspires and strengthens the confidence of all our stakeholders.

The Code outlines the principles and policies that govern the activities of the institution, sets forth the
rules of conduct in our work place and the standards of behavior of its directors, officers and employees
in their activities and relationships with external shareholders. These reflect the core values the
institution subscribe to and promote.

The Code applies at all times to all members of the Board of Directors and BDO Unibank Group
employees in their dealings with clients, suppliers, business partners and service providers. It covers
the Bank's commitment to a gender friendly workplace, concern for occupational health, safety and
workplace environment, transparency, integrity and accountability, compliance with laws and
regulations, standards of behavior and personal conduct, and ethics of doing business.

b. Training and Development

SEC FORM 17-A 127

 BDO continues to provide training opportunities aligned with business requirements and employees’
potentials and capabilities. Training programs include orientation for new hires, job specific technical
training, management and leadership training programs which aim to develop and enhance the
knowledge, skills, managerial and leadership capabilities, attitude and mindset of employees. The Bank
allocates a yearly training budget for these developmental programs. In 2021 the staff, managerial and
senior officers went through an average of 38.74, 39.42 and 38.93 training hours, respectively. In terms
of actual number of employees trained, staff was at 19,068, managers at 18,056 and senior officers at
1,816. Improvements in the design and delivery of eCourses and targeted training programs continue
to ensure more effective retention of the knowledge learned. Culture and values, service excellence,
regulatory requirements, job knowledge as well as leadership development continue to be the focus in
2021 to sustain availability of ready talents that support business growth.

The continuing education program for Directors is an ongoing process to ensure the enhancement of
their skills and knowledge. Every year, all Directors and key officers are given updates and briefings,
and are required to attend a corporate governance seminar on appropriate topics to ensure that they
are continuously informed of the developments in the business and regulatory environments, including
emerging opportunities and risks in the banking industry. All directors of BDO Unibank complied with
the annual corporate governance training requirement of four (4) hours for 2021. Nine (9) directors,
together with the Bank’s key executives and also the directors and key officers of BDO Unibank’s
subsidiaries, attended an in-house corporate governance seminar last September 1, 2021 done
virtually. It concentrated on the impact of geopolitics on digital business, design and delivery for
customer facing digital products, and digital leadership. Two (2) directors attended the corporate
governance seminar facilitated by the Institute of Corporate Directors last September 30, 2021 with
topics on sustainability, artificial intelligence, and digitalization, among others.

c. Employee Welfare

BDO is committed to promote the physical, social and mental well-being of its employees. It aims to
provide a workplace free from discrimination and all forms of physical, sexual and psychological abuse
including harassment, bullying and intimidation. The Bank established the Policy on Disclosure of
Sensitive/Confidential Matters to Management to give employees the opportunity to communicate, with
protection from reprisal, legitimate concerns about illegal, unethical or questionable practices in the
workplace.

d. Health and Safety

BDO is committed to maintain a positive, harmonious and professional work environment with due
importance accorded to the occupational health and safety of the employees and related external
constituencies.

The continuing activities to promote health and safety are the following:
• No Smoking Policy in all head offices and branches is strictly enforced;
• No firearms allowed in all offices and branch premises;
• Use of CCTV as a deterrent to possible criminal activities such as hold-ups/robberies;
• Fire prevention measures and safety/evacuation drills for fire and earthquakes;
• Installation of access ramps for persons with disability in our buildings and branches to make our
offices safe and accessible to PWDs;
• Regular safety inspections in corporate offices and branches nationwide to rectify immediately all
noted unsafe conditions; and
• Emergency Response Teams to ensure availability of emergency response personnel in time of
disaster.
• Safety and health training

SEC FORM 17-A 128

 In 2021, the Bank conducted the following initiatives to improve the health and safety of
Bank employees and customers inside the premises:
1. In response to the Covid19 pandemic, the following programs and protocols were continuously
implemented:
• Covid Care Hotline provided to all employees (teleconsult);
• Frequency of Covid-19 antigen testing for employees was increased during surge of cases
to weekly and fortnightly for client-facing and other employees, respectively;
• Personnel exhibiting Covid-like symptoms, upon medical assessment, are referred for
reverse-transcriptase polymerase chain reaction (RT-PCR) testing;
• Provision of masks and vitamins to employees;
• Provision of alcohol and soap at the branches and buildings;
• Installation of acrylic barriers and signage for physical distancing;
• Installation of temperature scanners at the entrance of Corporate Centers and provision of
portable temperature scanners in other offices;
• Body temperature of employees is measured thrice daily;
• Provision of oximeters to monitor the oxygen saturation level of employees;
• Paperless contact tracing at the branches;
• Regular disinfection of bank premises; and,
• Weekly inspection on the compliance with Covid-19 control at the branches and buildings,
among others.
• Work from home setup to some groups
• Inspection of ventilation system of buildings
• Published 262 advisories on Covid-19 prevention in 2021

2. A Health and Safety Committee meets on a regular basis to review the progress on the
implementation of its programs. The Committee is composed of a mix of officers in the Bank headed
by the Central Operations Group Head.
Our clinics are manned by occupational health practitioners and nurses. BDO maintains
nine medical clinics located in the following strategic areas in Metro Manila:
1. Corporate Center Makati
2. Corporate Center Ortigas
3. Ortigas Avenue, Greenhills
4. Roosevelt Avenue, Greenhills
5. Binondo, Dasmariñas
6. Davao City
7. Karrivin Plaza, Makati
8. BDO Paseo Tower
9. Double Dragon Meridian, Pasay

Society, Community and the Environment

Corporate Social Responsibility

Through the BDO Foundation, its corporate social responsibility arm, BDO Unibank undertakes
initiatives to address the needs of the underprivileged and marginalized members of society. In 2021,
the foundation fulfilled its disaster response, financial inclusion, rehabilitation and rebuilding
advocacies. It also continued to implement interventions in response to the novel coronavirus
pandemic for the benefit of Filipinos most affected by the health crisis.

SEC FORM 17-A 129

COVID-19 response programs

BDO Foundation implemented programs designed to help contain COVID-19, support frontliners and
help communities severely affected by the pandemic.

BDO Foundation’s COVID-19 pandemic response included the following:

• Distribution of food assistance in marginalized communities all over the country in partnership with Ako Bakwit,
Caritas Philippines, Tanging Yaman Foundation and social action centers
• Donation of hygiene kits to health workers and patients in Capiz, Iloilo and Negros Oriental provinces
• Provision of manpower support—nurses and medical technicians—for the vaccine rollout of General Santos
City and Iloilo City to mitigate the surge in cases due to the Delta variant of the COVID-19 virus
• Contribution to the Project Balik Buhay Salary and Bonus Assistance for our Bidas program, which provided
financial incentives to nurses stationed in the intensive care units, emergency rooms and COVID wards of
hospitals in Cebu, an initiative supported by the Department of Health and Office of the Presidential Assistant
for the Visayas
• Assistance in the vaccination of BDO employees’ relatives

BDO Foundation’s COVID-19 programs benefited 16,750 families, 2,055 health workers and
patients, 1,800 vaccinees in General Santos and Iloilo, nurses in eight hospitals, and 1,066 vaccinees
nominated by donors as well as people in 30 parishes and persons deprived of liberty in 48 prisons.
The initiatives were backed by BDO Unibank and BDO Network Bank branches, local government
units, medical organizations, hospitals, non-governmental organizations and volunteers who
provided logistical assistance on the ground.

Rehabilitation and upkeep of rural health units

Despite the limitations caused by the pandemic, BDO Foundation completed the rehabilitation of 21
rural health units (RHUs) in the provinces of Batangas, Bohol, Catanduanes, Ilocos Sur, Iloilo,
Isabela, Masbate, Negros Occidental, Samar and Surigao del Norte with 716,543 people as
beneficiaries. Supported by the DOH and local government units, the initiative was made possible
by officers of BDO and BDO Network Bank branches, who helped identify rural health units that
needed assistance and handled local coordination.

The rehabilitation program is in line with the foundation’s efforts to help improve the healthcare
delivery system, one of the goals under the Philippine health agenda. It is also the foundation’s
contribution to the achievement of the United Nations Sustainable Development Goal no. 3 to ensure
healthy lives and promote the well-being of people of all ages. As a pandemic response, the initiative
is critical as RHUs support efforts to curb the spread of the coronavirus. Health centers provide free
antigen testing and implement the vaccination programs of local government units.

BDO Foundation selected rural health units particularly in economically disadvantaged and disaster-
affected areas. It significantly improved the health centers’ exteriors, reception and waiting areas,
offices and clinics, consultation rooms, treatment rooms, pharmacies, furniture and fixtures. Further,
the foundation built breastfeeding stations for nursing mothers, play areas for children and waiting
lounges for senior citizens.

SEC FORM 17-A 130

As a result of these improvements, rural health units received high assessment scores from the DOH
and accreditation from PhilHealth. Doctors, nurses and midwives became better equipped to provide
primary and maternal health services to their constituents.
In addition to the rehabilitation of RHUs, BDO Foundation also completed the maintenance, repair
and upkeep of 10 previously rehabilitated health centers in Agusan del Sur, Aklan, Biliran, Camarines
Sur, Ilocos Sur, North Cotabato, Nueva Ecija, Samar and Sorsogon provinces for the benefit of
564,097 people.

Construction of Tech-Voc Training Facility

BDO Foundation continued to look after the welfare of disaster-affected Filipinos long after the
typhoons have made landfall. Dumangas town in Iloilo province was hard hit by Super Typhoon
Yolanda (Haiyan) in 2013. To help rebuild the community, the foundation constructed a technical-
vocational training facility at the Don Bosco Technical and Vocational Education and Training Center
- Dumangas in partnership with the Salesian Society of St. John Bosco.

The two-storey structure serves as a workshop, where senior high school students can learn
technical-vocational livelihood skills. The building enables administrators to introduce new courses,
accommodate more enrollees and teach more learners. It supports Don Bosco’s mission to educate,
evangelize and capacitate Filipino youth. The center educates economically disadvantaged and out-
of-school youth for gainful employment in the Philippines and abroad. Around 146 students stand to
benefit every year from the facility the foundation built.

BDO Foundation’s initiative in Iloilo contributes to the achievement of Sustainable Development Goal
8 to promote sustained, inclusive and sustainable economic growth, full and productive employment,
and decent work for all.

Financial education programs

In partnership with the Bangko Sentral ng Pilipinas (BSP) and in support of BSP’s National Strategy
for Financial Inclusion, BDO Foundation continued to promote financial inclusion programs in
partnership with the Department of Education (DepEd), Overseas Workers Welfare Administration
(OWWA), Civil Service Commission (CSC) and Armed Forces of the Philippines (AFP). Programs
with new partners including the Bureau of Fire Protection (BFP), Bureau of Fisheries and Aquatic
Resources (BFAR), and Philippine National Police (PNP), and Agricultural Credit and Policy Council
(ACPC) were implemented.

BDO Foundation and its partners shared financial literacy lessons with public school students,
teachers and non-teaching personnel; OFWs and recipients of remittances; civil servants; and
uniformed and civilian personnel of the armed forces; personnel of the government’s fire service
agency; the police; fisherfolk; and farmers. Beneficiaries learned lessons on saving, budgeting and
financial planning, investments, debt management, the responsible use of credit, entrepreneurship,
avoiding scams and retirement planning, among other topics. So far, the programs have reached
2,600,000 learners, 13,575 OFW-participants of OWWA’s Pre-Departure Orientation Seminars, 90

SEC FORM 17-A 131

CSC master trainers, 3,199 uniformed and civilian personnel of the AFP, 98 BFP trainers and 1,950
BFP personnel, and 51 BFAR trainers.

In line with the implementation of the programs, the foundation embarked on several key initiatives.
• DepEd issued DepEd Order No. 022, Series of 2021, detailing its Financial Education Policy to ensure that
financial education will be taught nationwide using the materials developed by BDO Foundation. The policy
covers all learners, teachers and non-teaching personnel from public and private elementary, junior and senior
high schools, as well as learning centers for Special Education, Alternative Learning Systems, Indigenous
Learning Systems and the Madrasah Education Program covering Muslim culture, customs and traditions.
• The foundation and DepEd partnered with Huawei Philippines as sponsors for a teacher competition called the
“Search for the Best Supplemental Learning Materials in the Teaching of Defined Key Concepts in Science
and Mathematics.” The nationwide contest was designed to encourage teachers to submit innovative learning
modules that integrate financial literacy into the teaching of Science and Math subjects. The partnership with
Huawei included the donation of 33 laptops to selected public schools.
• AFP officers conducted a focus group discussion funded by BDO Foundation to identify the financial literacy
lessons that the armed forces will cover in its training courses.
• The foundation, BFAR and BSP created the Fish N’ LEarn game, an innovative teaching tool designed to make
financial literacy lessons engaging for fishers. Through the training intervention, participants are expected to
learn lessons on conserving marine resources, saving for the future, expanding sources of income, proper use
of insurance and debt management. The target audience will be provided with instructional materials, cards
and play money produced by BDO Foundation.
• In partnership with BSP, CSC, AFP, BFP, and BFAR, four learning modules were drafted for civil servants,
armed forces personnel, firefighters and fishers. Six new financial education videos—three for OFWs and three
for civil servants—were produced. Five virtual learning sessions were conducted for DepEd, CSC and BFAR
personnel. An online training session was also facilitated for farmers in partnership with East-West Seed.

For the fourth consecutive year, BDO Foundation supported the BSP’s Financial Education
Stakeholders Expo, a five-day virtual event that gathered financial education advocates. Together
with the BDO Trust and Investments Group, the foundation featured the Personal Equity and
Retirement Account or PERA in its virtual booth. Working with BDO Remit, film actor and BDO brand
ambassador Piolo Pascual shared financial literacy lessons and his personal approach to money
management in a plenary session on “Preparing the Filipino Youth for a Financially Healthy Future.”

Relief operations

BDO Foundation continued to mount relief operations all over the country, providing aid in provinces
placed under a state of calamity. In 2021, the foundation organized relief efforts in response to a fire
incident in Occidental Mindoro, the Taal Volcano eruptions and Typhoons Bising (international name:
Surigae), Fabian (Cempaka), Maring (Kompasu) and Odette (Rai) for the benefit of 54,120 Filipinos.
These were made possible by officers and staff of BDO and BDO Network Bank branches, who
made monetary contributions, identified communities that needed assistance, gathered beneficiary
information and coordinated relief operations.

Prior to the pandemic, BDO Foundation mobilized employee-volunteers from branches and satellite
offices. BDO volunteers visited evacuation sites in cities and towns hit hardest by the disasters to
distribute hygiene kits and relief packs containing food, rice and drinking water. As the quarantines
were imposed all over the country, the foundation leveraged the support of partner non-governmental
organizations, churches, police personnel, the military and local government units for aid distribution.

SEC FORM 17-A 132

Handog sa ‘Yo ng BDO Foundation

BDO Foundation provided food assistance for economically disadvantaged communities all over the
country as part of a Christmas gift-giving initiative dubbed Handog sa ‘Yo ng BDO Foundation. In
partnership with Caritas Philippines, the social arm of the Philippine Catholic Church, the foundation
distributed food packs to 20,000 underserved families in 23 provinces in Luzon, the Visayas and
Mindanao.
Handog sa ‘Yo was aimed at giving back to the community during the holiday season and
supplementing the food supply of families during hard times. Implementation was made possible with
the support of parishes and diocesan social action centers as well as BDO and BDO Network Bank
branches in the aforementioned provinces.

Other corporate citizenship initiatives

BDO Foundation made an impact on its beneficiaries through other initiatives.

• Distribution of food assistance to 2,299 underserved families in Aklan, Capiz, Cebu, Davao del Sur, Iloilo,
Leyte, Metro Manila, Negros Occidental, Pampanga, Pangasinan, Rizal and Samar in partnership with BDO
Network Bank, Beiersdorf Philippines, Jesuit Communications Foundation and U.S.-Philippines Society
• Donation of 1,164 bottles of baby lotion, 512 baby soap bars and other items to Ako ang Saklay Foundation
for underserved families in Nueva Ecija
• Donation of 170 computers and 10 scanners to public schools in partnership with BDO Network Bank in support
of DepEd's Basic Education Learning Continuity Plan during the pandemic
• Donation of 904 books to Caritas Manila and the Manila City Library
• Sponsorship of the Zero Extreme Poverty Philippines 2030 6th general assembly, themed “Creating a Better
Normal Towards Sustainable Communities”, which served as a venue for discussions on efforts to address the
effects of the pandemic
• Sponsorship of SEAMEO INNOTECH's Digital Well-being of Filipino Learners: A Webinar on Youth
Cybersafety and Digital Citizenship, an online event that featured discussions on how educators can cultivate
a secure online environment for learners amid the pandemic

BDO Foundation will continue to conduct relief operations, rehabilitate rural health units and
implement financial education programs, among other corporate citizenship initiatives. It will also
continue to implement programs in response to the pandemic. Supported by the BDO Unibank
community, the foundation will find ways to give back to underserved sectors of society.

Environmental Initiatives

BDO imposes limits and monitors exposure to certain industries such as production or trade in
weapons and munitions, online gaming and equivalent enterprises, hydroelectric plant with weir
height of more than 50 meters, illegal mining, illegal fishing and child labor (those deemed to have
adverse environmental and social effects to community).

BDO’s green financing has been practiced since 2010 and is considered one of the pioneers to have
catalyzed sustainable finance in Philippine's banking industry. Through its cooperation with IFC until
2018, the Bank has led financing in green energy investments in Renewable Energy, Energy
Efficiency and Green Building projects. In February 2018, BDO was the first to have issued a $150
million green bond in the country and East Asia Pacific with IFC as its sole investor. In addition, BDO
had a partnership with Japan Bank for International Cooperation to relend its $50 million green facility

SEC FORM 17-A 133

to environment-related projects focusing on renewable energy in the Philippines in August 2016.
Thus, providing our clients with additional financial product that can support their prospective green
projects.

In 2021, BDO’s Sustainable Finance Framework was certified and given endorsement by
Sustainalytics, a leading and independent Environmental, Social and Governance (ESG) research
and ratings provider based in New York. Sustainalytics expressed that “BDO’s Sustainable Finance
Framework is credible and impactful, and aligns with the Sustainability Bond Guidelines in 2018,
Green Loan Principles 2020, and the ASEAN Sustainability Bond Standards 2018.”

Please refer to the Corporate Social Responsibility Section of the 2021 Annual Report and the 2021
Sustainability Report for more details on the Bank's socio-civic programs and initiatives published in
our corporate website at (www.bdo.com.ph).

The Bank also maintained its “Go Green Program” to raise awareness on environmental issues,
promote good environmental practices in the workplace, mobilize volunteers for conservation
programs. Its Green initiatives focuses on energy conservation using LED lights, water management
using waterless urinals, air quality by tree planting in support of “Grow a Million Trees” campaign,
waste disposal and other clean-up projects.

BDO Corporate Center Ortigas (BDO CCO) has earned a certification on Leadership in Energy and
Environmental Design (LEED), two years after the 47-storey office structure was formally unveiled.
It is the first high-rise office-commercial building in the Philippines to achieve a LEED Gold “New
Construction Category” Certification. Various sustainable methods were implemented in the
construction of the building that steered its LEED accreditation. These include the installation of
automated monitoring and control systems as CO2 sensors, occupancy sensors, daylight dimming
and timer switches.
• With the help of the CO2 sensors, indoor pollutants are mitigated and help the building steer away from catching
the sick building syndrome.
• By deciding to go automated, energy is saved from mechanically turning off or dimming the lights when it does
not sense any human activity and when sufficient natural light enters the room.
• Sustainable effort was done by employing dual piping in the plumbing system. Grey
• water, harvested rainwater and condensate water are recycled and re-used for flushing.

The combination of efficient water fixtures and grey water flushing were keys in reducing the total
building potable water use by approximately 5,700,000 liters annually. BDO's practice in green
financing brings forth solid outcome and basis for establishing Sustainable Finance Framework
which provides guidelines and parameters for green and social impact financing. With continued
innovation in green financing, the Bank has positioned to lead Sustainable Finance across various
industries.

Business Competitors

The Bank is committed to treat business competitors fairly and professionally in all dealings with
them. It will avoid making references or discussions that may have a negative impact on the Bank's
competitors.

SEC FORM 17-A 134

Government and Regulators

The Bank supports the compliance with the spirit, not just the letter, of the laws and regulations of
the jurisdictions it operates. All business deals and transactions shall adhere to regulatory
requirements and applicable laws particularly on confidentiality of deposits, data privacy and
protection, anti-money laundering and other financial crimes, anti-corruption and bribery, insider
trading and consumer protection. In 2021, the Bank continued to be active in giving comments on
various proposed legislations and regulations.

Transparency and Disclosures

BDO is fully committed to provide its investors and other stakeholders full transparency and timely
information disclosure through filing with the Securities and Exchange Commission (SEC) and the
Philippine Stock Exchange (PSE), as found in the following:
• General Information Sheet (GIS)
• Definitive Information Sheet (DIS)
• SEC form 17-A
• SEC form 17-C (current reports - material information)
• SEC form 17-Q (Quarterly Report)
• SEC form 23-A/B (Statement of Beneficial Owners)
• Audited Financial Statements (AFS)

Required disclosures relating to:

1. Financial information is stated in the AFS, SEC Form 17-Q and the DIS
2. Shareholder matters are provided in the DIS
3. Executive compensation policy is stated in the DIS
4. Directors' fees are found in the DIS
5. Corporate actions, among others, are provided in the PSE official website www.pse.com.ph

In particular, BDO released the 2020 audited financial statements on February 26, 2021 or just 57
days after close of the financial year to promote transparency and full disclosure of the results of the
operations of the Bank.

Other key information disclosed by the Bank included the composition of the Board, role and activities
of board committees, meetings held and attendance of directors, director continuing education
records, remuneration policy, shareholding structure, annual performance self-assessment of Board
of Directors as a collective body, directors, committees and senior management, Code of Conduct
and Business Ethics, Corporate Governance Manual, SEC Annual Corporate Governance Report,
BDO organizational structure, conglomerate map an important corporate governance policies such
whistle blowing, term limit of independent directors, personal trading, conflict of interest, dividend,
Board diversity policy and related party transactions.

To ensure an even wider access by the investors and the public, these disclosures and other
corporate information are also uploaded in the Bank's official website www.bdo.com.ph (See
“Investor Relations” and “Corporate Governance”). The details of established corporate governance
policies are found in the Revised Corporate Governance Manual.

SEC FORM 17-A 135

Evaluation System

The Bank has required in its Corporate Governance Manual (the “Manual”) that all Board level
committees shall report regularly to the Board of Directors in compliance with the Manual's policies
and procedures. The Bank supports the principle and regulatory mandate of checks and balances
across the entire Group by its observance of the segregation of powers, independence of audit,
compliance and risk management functions. In the context of independent checks and balances, the
Board has appointed the Chief Internal Auditor, Chief Risk Officer and Chief Compliance Officer to
assist the Board in its oversight functions.

As part of its continuing focus on good corporate governance, the Audit Committee is empowered
by the Board to oversee the financial reporting process, internal control and risk management
systems, internal and external audit functions, and compliance with applicable laws and regulations.

Their oversight function covers the following areas:

On financial reporting, the committee reviews the integrity of the reporting process to ensure the
accuracy and reliability of financial statements and compliance with financial reporting standards and
disclosure requirements set for listed companies.

On internal control and risk management, it monitors and evaluates the adequacy, soundness and
effectiveness of the Bank’s established internal control and risk management systems, policies and
procedures including implementation across all units of the Bank to provide reasonable assurance
against fraud or other irregularities and material misstatement or loss.

On internal and external audit, it recommends the appointment, reappointment and removal of the
external auditors, remuneration, approval of terms of audit engagement and payment of fees. It
reviews non-audit work, if any, ensuring that it would not conflict with their duties as external auditors
or may pose a threat to their independence. It approves the annual audit plan and reviews audit
results focusing on significant findings with financial impact and its resolution. It reviews the
implementation of corrective actions to ensure that these are done in a timely manner to address
deficiencies, non-compliance with policies, laws and regulations.

On compliance, it recommends the approval of the Compliance Charter and reviews the performance
of the Chief Compliance Officer and compliance function. It also reviews the annual plans of the
Compliance Group including the Anti-Money Laundering Department, and evaluates the
effectiveness of the regulatory compliance framework and governance policies and practices of the
Bank to ensure that these are consistently applied and observed throughout the institution. It reviews
the report of examination of the Bangko Sentral ng Pilipinas (BSP) and other regulators including
replies to such reports for endorsement to the Board for approval.

In this context, the following were done during the year:

SEC FORM 17-A 136

 Board Audit Committee

On financial reporting, the Board Audit Committee (BAC) reviewed and recommended for
approval to the Board the Bank’s quarterly unaudited and annual audited financial statements
ensuring compliance with accounting standards and tax regulations. On February 23, 2021, it
endorsed for approval of the Board the Bank’s audited financial statements as of December
31, 2020 including the Notes to the Financial Statements. This was approved by the Board on
February 24, 2021 and disclosed to the public on February 26, 2021, 57 days from the financial
yearend, following the best practice requirement of the ASEAN Corporate Governance
Scorecard (ACGS). It believes that the financial statements are fairly presented in conformity
with the relevant financial reporting standards in all material aspects. The related internal
controls on financial reporting process, compliance with accounting standards were likewise
reviewed.

In overseeing the internal audit function, it reviewed and approved the Internal Audit Charter,
Audit manuals, and risk-based audit plan after a thorough review of its scope, audit
methodology, risk assessment and rating processes, financial budget, manpower resources,
as well as changes to the plan during the year. It reviewed audit reports focusing on high and
moderate risk findings relating to operational, financial and compliance controls including risk
assessment systems with impact to financial, reputation and information security. It regularly
tracked the timely resolution of findings and asked for Management’s action plans on items
that needed to be addressed. It ensured the Internal Audit’s independence and unfettered
access to all records, properties and information to be able to fully carry out its function. It also
assessed the performance of the Chief Internal Auditor and the internal audit function. The
Committee is satisfied that the internal audit function has adequate resources to perform its
function effectively.

On external audit, it ensured the independence, qualification, and objectivity of the appointed
external auditor, which is accredited by the BSP and SEC. On April 21, 2021, it approved and
endorsed for approval of the Board the re-appointment of the Bank’s external auditor. It
reviewed and discussed the content of the engagement letter, audit plan, scope of work, focus
areas, composition of engagement team among others, prior to the commencement of audit
work. It comprehensively discussed the external audit reports, focusing on internal controls,
risk management, governance and matters with financial impact particularly on the changes
in accounting and reporting standards. It reviewed Management’s Letter as well as
Management’s response and action taken on the external auditor’s findings and
recommendations.

In overseeing the compliance function, it reviewed and approved the Compliance Charter,
annual plans, and independent compliance testing roadmaps of the Compliance and Anti-
Money Laundering (AML) departments. It approved and endorsed for approval of the Board
of Directors the Compliance Manuals, including the revised Regulatory Compliance and
Management Manual, , Independent Compliance Testing Manual , which incorporate the
recommendations by the BSP and Internal Audit in their examinations. It monitored the
progress and reviewed the results of the independent compliance and AML testing, timely

SEC FORM 17-A 137

 submission of regulatory and prudential reports, compliance to mandatory ratios, as well as
continuous improvement of the compliance and AML systems. It discussed in detail the BSP
Reports of Examination including the results of regulatory examinations of the Bank’s foreign
subsidiaries and reviewed Management’s replies, thereby ensuring implementation of
corrective actions. It also reviewed and provided guidance to Management in its replies to
concerns of the regulators to ensure that the Bank’s position is appropriately presented.

Reports on cases in operations, whistle blower accounts as well as non-loan related cases
with impact to financials, internal controls, information systems and reputation were
deliberated on focusing on risk assessment, legal handling, and fraud prevention.

As part of its commitment to excellent corporate governance, the Committee conducted a self-
assessment for its 2020 performance based on its Terms of Reference. The BAC likewise
evaluated the performance of Internal Audit, Compliance and AML departments, and External
Audit to ensure their effectiveness and achievement of their objectives.

The BAC reports its evaluation of the effectiveness of the internal controls, financial reporting
process, risk management systems of the Bank, based on the report and unqualified opinion
obtained from the External Auditor, the overall assurance provided by the Chief Internal
Auditor and additional reports and information requested from Senior Management, and found
these to be generally adequate across BDO.

The Board Audit Committee is chaired by Atty. Jose F. Buenaventura (Independent Director).
Its other members are Mr. Jones M. Castro, Jr., Non-Executive Director) and Vicente S. Perez,
Jr. (Independent Director).

The Board Audit Committee held 12 meetings in 2021 with all members attending all meetings.

Corporate Governance Committee

The Corporate Governance Committee (CGC) is primarily tasked to assist the Board in
formulating the governance policies and overseeing the implementation of the governance
practices of the Bank as well as its subsidiaries and affiliates. Annually, it also conducts the
performance evaluation of the Board of Directors, its committees, executive management,
peer evaluation of directors, and conducts a self-evaluation of its performance. It provides an
assessment of the outcome and reports to the Board the final results of the evaluation
including recommendations for improvement and areas to focus to enhance effectiveness. It
also oversees the continuing education program for directors and key officers and proposes
relevant trainings for them.

During the year, the Corporate Governance Committee facilitated the compliance of the
directors of the Bank and its subsidiaries with the regulatory requirement for an annual
corporate governance seminar for Directors as part of their continuing education. The
seminar focused on the impact of geopolitics on digital business, design and delivery for
customer facing digital products, and digital leadership. The Committee continuously

SEC FORM 17-A 138

 monitored the Bank’s compliance with local and international corporate governance
standards. It reviewed and endorsed for Board approval the Bank’s 2020 Integrated Annual
Corporate Governance Report to the Securities and Exchange Commission (SEC), which
documents Bank’s compliance with the SEC Code of Corporate Governance. It also
spearheaded the annual Board evaluation self-assessment by Board members and advisors
as facilitated by Isla Lipana & Co./ PwC Philippines (PwC) covering the performance in
2021 of the Board of Directors, Board Committees, Senior Management, each Director,
and Board Advisors. Although the recommendation in the SEC Code of Corporate
Governance for an external facilitator is required only every three (3) years, the
Committee steered the engagement of an external facilitator to handle the annual Board
evaluation self-assessment for the Board for better governance practice.

Below is the attendance of the members in Committee meetings held in 2021:

Name Director Type No. of Meetings Total No. of Percentage Remarks

Attended Meetings
Gilberto C. Teodoro, Jr. Independent 5 5 100% Resigned as of
October 7, 2021

Vicente S. Pérez, Jr. Independent 7 7 100%

Jose F. Buenavantura Independent 4 4 100% Appointed on

April 23, 2021

Jones M. Castro, Jr.

Independent 3 3 100% Member until
(until April 23, April 23, 2021;
2021) Reclassified to
Non-Executive
Director as of
April 23, 2021

Measures on leading practices of good corporate governance

The Bank is constantly aligning its corporate governance system with the international
practice taking into account the continuous developments in national regulations.

The Board approved the amendments to the Bank’s Articles of Incorporation and By-Laws
to conform with the Revised Corporation Code of the Philippines and the Bank’s current
operations and structure as well as enhance corporate governance. Noteworthy of these
amendments is the increase of the quorum requirement for meetings of the Board from a
simple majority to two-thirds (2/3). Every decision made during such meetings shall also
require two-thirds (2/3) of such quorum in order to pass a valid corporate act.

Related party transactions, whose value may exceed 10% of the Bank’s total assets,
require review of an external independent party to evaluate the fairness of its terms and
conditions and approval of 2/3 vote of the Board, with at least a majority of the independent
directors voting affirmatively.

SEC FORM 17-A 139

 Any Deviation from the Manual

None

Improvement on Corporate Governance

The Bank is now in the era of digital transformation and we continue to look at ways to
optimize the use of the new technologies to strengthen our corporate governance practices
while remaining vigilant on the risk of digitization to our business operations. In ensuring
that the Bank stays as the market leader in the Philippine financial services industry, we
are focused on maximizing the effectiveness of our corporate governance practices as a
business enabler and driver of our performance in the proper context of risks and rewards,
opportunities and prospects for the Bank. This is essential going forward as we continue
to compete and remain relevant to our various stakeholders. Globally, there is also an
increasing call for companies to support the UN Sustainable Development Goals as part
of sustainable business performance with emphasis on strategies that promote economic
growth, environmental protection, efforts that address a range of social needs and a
governance model that considers sustainability issues. BDO continues to be mindful of
contributing positive impact on sustainability as it continues to report annually on its
sustainability performance and contribution to the UN Sustainable Development Goals.

SEC FORM 17-A 140

 PART V – EXHIBITS AND SCHEDULES

Item 14. List of Branches, Reports on SEC Form 17-C

a) Directory of Branch Offices

A list of the Bank’s branches is provided in Item 2 of this report.

b) The SEC Form 17-C (Current Report) filed in 2021 and the first quarter of 2022 are
set forth below, such as:

Date of Disclosure Subject

March 17, 2021 Preliminary Information Statement for the Annual Stockholders’ Meeting of BDO on April 23, 2021
at 2:00 in the afternoon, to be conducted virtually and participation will be via remote communication
March 19, 2021 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 24,600 common shares
March 23, 2021 Amended General Information Sheet of BDO for the Year 2020 reflecting the updated Capital
Structure, Stockholders' Information, and Additional Issued Shares of BDO
March 26, 2021 Definitive Information Statement for the Annual Stockholders’ Meeting of BDO on April 23, 2021 at
2:00 in the afternoon, to be conducted virtually and participation will be via remote communication
March 30, 2021 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 44,500 common shares
March 31, 2021 Amended Definitive Information Statement for the Annual Stockholders’ Meeting of BDO on April
23, 2021 at 2:00 in the afternoon, to be conducted virtually and participation will be via remote
communication
April 8, 2021 Amended General Information Sheet of BDO for the Year 2020 reflecting the updated Capital
Structure, Stockholders' Information, and Additional Issued Shares of BDO
April 14, 2021 List of Top 100 Stockholders (Common Shares) as of March 31, 2021

April 16, 2021 Public Ownership Report as of March 31, 2021

April 19, 2021 Request for Extension to file SEC Form 17-A

April 23, 2021 Press Release re: BDO Posts P28.2 Billion Income in 2020; Earns P10.4 Billion in 1Q21

April 26, 2021 Results of Regular Board Meeting held on April 23, 2021:
- Approval of the hiring of Ms. Maria Lourdes Donata C. Gonzales as Senior Vice President
(SVP) for Institutional Banking Group/Corporate Banking, effective May 17, 2021, subject to
BSP confirmation; and
- Approval of the secondment of Mr. Manuel Zamora Locsin, Jr. as SVP and Officer-in-Charge,
to BDO Finance Corporation, BDO Leasing and Finance, Inc. and BDO Rental, Inc., effective
May 1, 2021, subject to regulatory approval, if necessary
April 26, 2021 Results of 2021 Annual Stockholders’ Meeting held on April 23, 2021:
- Approval of the election of members of the Board of Directors for 2021– 2022;
- Approval of the amendments to BDO’s By-Laws to address the comments and
recommendations of the Bangko Sentral ng Pilipinas (BSP) on Sections 10 and 16;

SEC FORM 17-A 141

 Date of Disclosure Subject

- Re-appointment of Punongbayan and Araullo, Grant Thornton as external auditor of BDO

Unibank for the year 2021;
- Approval of the Minutes of the Annual Shareholders' Meeting held on June 16, 2020;
- Approval of BDO’s Audited Financial Statement as of December 2020; and
- Approval and ratification of all acts of the Board of Directors, Board Committees and
Management during their terms of office
April 26, 2021 Results of the 2021 Organizational Meeting of the Board of Directors held on April 23, 2021:
- Approval of the election/appointment of the following persons to the various positions set forth
below:
1. Chairperson, Vice Chairman and Lead Independent Director;
2. Advisors to the Board;
3. Board Committee Members; and,
4. Corporate Officers.
April 26, 2021 SEC 17-Q (Quarterly Report) as of March 31, 2021

April 28, 2021 Amended disclosure on the Amendments to By-Laws to separate the amendments approved by
the Board on October 26, 2019 and ratified by the stockholders on June 16, 2020 from further
amendments approved by the Board last December 5, 2020 and ratified by the stockholders on
April 23, 2021 made pursuant to the comments of the Bangko Sentral ng Pilipinas
April 28, 2021 Details of the Amendment to By-Laws

May 5, 2021 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 29,600 common shares
May 7, 2021 Amended General Information Sheet of BDO for the Year 2020 reflecting the updated Capital
Structure, Stockholders' Information, and Additional Issued Shares of BDO
May 10, 2021 BDO Statement of Condition as of March 31, 2021

May 12, 2021 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 5,000 common shares
May 14, 2021 SEC Form 17-A (Annual Report) as of December 31, 2020

May 18, 2021 Amended General Information Sheet of BDO for the Year 2020 reflecting the updated Capital
Structure, Stockholders' Information, and Additional Issued Shares of BDO
May 20, 2021 Summary of Self-Assessment of the Board Audit Committee of BDO Unibank, Inc. for the Year
2020
May 25, 2021 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 5,000 common shares
May 27, 2021 General Information Sheet of BDO Unibank, Inc. for the Year 2021

May 31, 2021 Result of Regular Board Meeting held on May 29, 2021:
- Approval of the declaration of regular cash dividends on common shares of BDO in the amount
of Php0.30 per share for the 2nd Quarter of 2021 payable on June 25, 2021 to all stockholders
of record as of June 16, 2021
June 2, 2021 Integrated Annual Corporate Governance Report of BDO Unibank, Inc. for the year ended 2020

SEC FORM 17-A 142

 Date of Disclosure Subject

June 2, 2021 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 92,000 common shares
June 4, 2021 Amended General Information Sheet of BDO for the Year 2021 reflecting the updated Capital
Structure, Stockholders' Information, and Additional Issued Shares of BDO
June 23, 2021 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 140,000 common shares
June 25, 2021 Amended General Information Sheet of BDO for the Year 2021 reflecting the updated Capital
Structure, Stockholders' Information, and Additional Issued Shares of BDO
June 28, 2021 Result of the Regular Board Meeting held on June 26, 2021:
- Notation of the retirement of Mr. Ricardo Valenciano Martin, Executive Vice President and
former Chief of Staff to the Office of the President, effective July 1, 2021
July 5, 2021 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 22,000 common shares
July 7, 2021 Amended General Information Sheet of BDO for the Year 2021 reflecting the updated Capital
Structure, Officers, Stockholders' Information, and Additional Issued Shares of BDO
July 13, 2021 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 145,500 common shares
July 13, 2021 Amended General Information Sheet of BDO for the Year 2021 reflecting the updated Capital
Structure, Stockholders' Information, and Additional Issued Shares of BDO
July 15, 2021 List of Top 100 Stockholders (Common Shares) as of June 30, 2021

July 16, 2021 Public Ownership Report as of June 30, 2021

July 16, 2021 Notice of Analysts Virtual Briefing on August 2, 2021 (Monday), 02:00 PM PHT, via Cisco Webex

July 23, 2021 Amended General Information Sheet of BDO for the Year 2021 reflecting the updated Capital
Structure, Stockholders' Information, and Additional Issued Shares of BDO
July 23, 2021 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 5,000 common shares
August 2, 2021 Result of Regular Board Meeting held on July 31, 2021:
- Approval of the financial statements of the Bank for the 1st Half of 2021
August 2, 2021 Press Release re: BDO Earns P21.4 Billion in 1H 2021

August 2, 2021 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 56,900 common shares
August 2, 2021 SEC 17-Q (Quarterly Report) as of June 30, 2021

August 3, 2021 Amended General Information Sheet of BDO for the Year 2021 reflecting the updated Capital
Structure, Stockholders' Information, and Additional Issued Shares of BDO
August 10, 2021 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 18,000 common shares
August 11, 2021 BDO Statement of Condition as of June 30, 2021

August 19, 2021 Amended General Information Sheet of BDO for the Year 2021 reflecting the updated Capital
Structure, Stockholders' Information, and Additional Issued Shares of BDO

SEC FORM 17-A 143

 Date of Disclosure Subject

August 27, 2021 Results of Regular Board Meeting held on August 27, 2021:
- Approval of the declaration of regular cash dividends on common shares of BDO in the
amount of Php0.30 per share for the 3rd Quarter of 2021 payable on September 24, 2021 to
all stockholders of record as of September 15, 2021;
- Approval of the promotion of the following Senior Officers of the Bank, from First Vice
President to SVP, effective February 1, 2021, subject to confirmation by the Bangko Sentral
ng Pilipinas: (1) Mr. Jose Eduardo A. Quimpo II (BDO Capital and Investment Corporation),
(2)
Mr. Gerardo Clemente C. Rivera (BDO Private Bank, Inc. – Treasury), and (3) Ms. Sharon
Mae S. Vicente (BDO Securities Corporation – Prime Wealth Management); and
- Notation of the retirement of Ms. Agnes C. Tuason, Senior Vice President and Head of
Institutional Banking Group/Commercial Banking/Metro Manila and Luzon/Metro Manila/MM
East A, effective September 1, 2021
September 2, 2021 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 28,900 common shares
September 6, 2021 Amended General Information Sheet of BDO for the Year 2021 reflecting the updated Capital
Structure, Officers, Stockholders' Information, and Additional Issued Shares of BDO
September 8, 2021 Amended disclosure on declaration of cash dividends to reflect correct the Ex-Date

September 14, 2021 Temporary change in business address of BDO Unibank, Inc. from BDO Corporate Center, 7899
Makati Avenue, Makati City 0726 to BDO Towers Valero, 8741 Paseo de Roxas, Salcedo Village,
Makati City 1226, effective today, September 14, 2021, until further notice
September 22, 2021 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 17,000 common shares
September 23, 2021 Amended General Information Sheet of BDO for the Year 2021 reflecting the updated Complete
Business Address (temporary), Capital Structure, Officers, Stockholders' Information, and
Additional Issued Shares of BDO
September 27, 2021 Result of Regular Board Meeting held on September 25, 2021:
- Acceptance of the resignation of Mr. Antonio Ongkiko Peña, SVP and Business Head of
Consumer Banking Group/Lending/Auto Loans, effective October 16, 2021
October 5, 2021 Amended General Information Sheet of BDO for the Year 2021 reflecting the updated Capital
Structure, Officers, Stockholders' Information, and Additional Issued Shares of BDO
October 5, 2021 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 56,900 common shares
October 8, 2021 Resignation of Atty. Gilberto C. Teodoro, Jr., Independent Director of BDO Unibank, Inc. (the
"Bank"), from the Bank's Board of Directors effective October 7, 2021, due to and prior to his filing
of Certificate of Candidacy for the 2022 Senatorial election
October 11, 2021 Amended General Information Sheet of BDO for the Year 2021 reflecting the updated Capital
Structure, Stockholders' Information, and Additional Issued Shares of BDO
October 13, 2021 Notice of Analysts Virtual Briefing on October 25, 2021 (Monday), 02:00 PM PHT, via Cisco Webex

October 13, 2021 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 133,800 common shares
October 13, 2021 List of Top 100 Stockholders (Common Shares) as of September 30, 2021

October 18, 2021 Public Ownership Report as of September 30, 2021

SEC FORM 17-A 144

 Date of Disclosure Subject

October 18, 2021 Amended General Information Sheet of BDO for the Year 2021 reflecting the updated List of
Directors of BDO
October 25, 2021 Amended General Information Sheet of BDO for the Year 2021 reflecting the updated Capital
Structure, Officers, Stockholders' Information, and Additional Issued Shares of BDO
October 25, 2021 Results of Regular Board meeting held on October 23, 2021:
- Notation of the resignation of Atty. Gilberto C. Teodoro, Jr. as Independent Director, effective
October 7, 2021;
- Approval of the hiring of Mr. Alexander Francis Dreyfus Deato as SVP for Information
Technology Group/Project Implementation Partnering, effective November 16, 2021, and Ms.
Carol Pereyra Warner as SVP for Internal Audit/Subsidiaries Audit, effective December 1,
2021, both subject to BSP confirmation; and
- Notation of the retirement of Mr. Geronimo Dacanay Diaz, SVP and Region Head of Branch
Banking Group/Region 6A-Southern Luzon, effective November 1, 2021
October 25, 2021 Press Release re: BDO Earnings Back to Pre-Pandemic Levels (9M 2021 Profits at P32.4 billion)

October 25, 2021 SEC 17-Q (Quarterly Report) as of September 30, 2021

October 26, 2021 Amended disclosure on the date of appointment of Mr. Alexander Francis Dreyfus Deato, and Ms.
Carol Pereyra Warner, to October 23, 2021, date of the Board Meeting
November 5, 2021 Effectivity date of the temporary change in business address of BDO Unibank, Inc. from BDO
Corporate Center, 7899 Makati Avenue, Makati City 0726 to BDO Towers Valero, 8741 Paseo de
Roxas, Salcedo Village, Makati City 1226, took effect on October 30,2021, instead of on September
14, 2021 as initially reported
November 5, 2021 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 47,000 common shares
November 9, 2021 Amended General Information Sheet of BDO for the Year 2021 reflecting the updated Complete
Business Address (temporary), Capital Structure, Officers, Stockholders' Information, and
Additional Issued Shares of BDO
November 12, 2021 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 89,000 common shares
November 16, 2021 Amended General Information Sheet of BDO for the Year 2021 reflecting the updated Capital
Structure, Officers, Stockholders' Information, and Additional Issued Shares and List of
Affiliates/Subsidiaries of BDO
November 18, 2021 Retraction of Mr. Alexander Francis Dreyfus Deato, SVP for BDO Unibank, Inc. (the “Bank”)
Information Technology Group/Project Implementation Partnering, acceptance of employment with
the Bank to pursue other endeavors
December 6, 2021 Results of Regular Meeting held on December 4, 2021:
- Approval of the declaration of regular cash dividends on common shares of BDO in the
amount of Php0.30 per share for 4th Quarter of 2021 payable on December 29, 2021 to all
stockholders of record as of December 22, 2021;
- Notation of the retirement of Mr. Antonio N. Cotoco, Senior Credit Executive, and Ms. Guia
C. Lim, Senior Credit Executive, both effective on December 31, 2021; and Mr. Noel D. Dizon,
SVP and Head of Branch Banking Group/Region 5 – Metro Manila South, and Ms. Cerwina
Elenore A. Santos, SVP and Unit Head of Institutional Banking Group/Commercial
Banking/Metro Manila and Luzon/Metro Manila/South A, both effective on January 1, 2022;
and

SEC FORM 17-A 145

 Date of Disclosure Subject

- Notation of the withdrawal by Mr. Alexander Francis Dreyfus Deato of his acceptance of his
appointment as SVP for Information Technology Group/Project Implementation Partnering
December 7, 2021 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 33,900 common shares
December 7, 2021 Amended General Information Sheet of BDO for the Year 2021 reflecting the updated Capital
Structure, Officers, Stockholders' Information, and Additional Issued Shares of BDO
December 17, 2021 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 20,900 common shares
December 20, 2021 Press Release re: BDO Plans Issuance of ASEAN Sustainability Bonds To Be Issued Off Its
PHP365 Billion Bond Programme
December 21, 2021 Press Release re: BDO Forms Business Alliance with Japan’s Resona Bank Group

December 22, 2021 Amended Press Release re: BDO Forms Business Alliance with Japan’s Resona Bank Group

December 23, 2021 Amended General Information Sheet of BDO for the Year 2021 reflecting the updated Capital
Structure, Stockholders' Information, and Additional Issued Shares of BDO
December 23, 2021 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 3,000 common shares
December 23, 2021 BDO Unibank, Inc. plans to issue Peso-denominated Fixed-Rate Sustainability Bonds with a
minimum aggregate issue size of PHP5 Billion as its third issuance off its PHP365 billion Bond
Programme
December 28, 2021 Amended General Information Sheet of BDO for the Year 2021 reflecting the updated Capital
Structure, Stockholders' Information, and Additional Issued Shares of BDO
January 6, 2022 BDO Unibank, Inc.'s Board of Directors’ Attendance for Meetings held in 2021

January 10, 2022 Results of Regular Board Meeting held on January 8, 2022:
- Approval of the appointment of Mr. Vipul Bhagat as Independent Director of the Bank to fill the
vacancy in the Board with the resignation of Atty. Gilberto C. Teodoro, Jr. on October 6, 2021;
- Approval of the appointment of the following Directors to fill vacancy in Corporate Governance,
Nominations, Compensation, and Related Party Transactions Committee of the Bank:
- Mr. Vipul Bhagat as Chairman of the Bank’s Corporate Governance Committee,
- Mr. George T. Barcelon as Chairman of the Bank’s Compensation Committee,
- Mr. Dioscoro I. Ramos as Chairman of the Bank’s Related Party Transactions
Committee, and
- Mr. Vicente S. Pérez, Jr. as Member of the Bank’s Nominations Committee,
thereby becoming the new members of said Board Committees from the date of Board approval
until the 2022 Annual Stockholders’ Meeting; and
- Approval of the setting of the Annual Stockholders’ Meeting of the Bank on April 22, 2022, at
2:00 in the afternoon, to be held virtually; and setting of the record date for stockholders entitled
to vote and be voted, and participate at such meeting on March 2, 2022
January 10, 2022 Press Release re: BDO Starts Offer of Php5 billion ASEAN Sustainability Bond

January 10, 2022 BDO Unibank, Inc. (the “Bank”) announced the start of its public offering of PHP5 billion worth of
Peso-denominated Fixed-Rate ASEAN Sustainability Bonds as the Bank’s third issuance under its
PHP365 billion Bond Programme
January 11, 2022 Amended General Information Sheet of BDO for the Year 2021 reflecting the updated List of
Officers of BDO

SEC FORM 17-A 146

 Date of Disclosure Subject

January 18, 2022 Public Ownership Report as of December 31, 2021

January 18, 2022 List of Top 100 Stockholders (Common Shares) as of December 31, 2021

January 20, 2022 Amended Public Ownership Report as of December 31, 2021

January 21, 2022 Amended General Information Sheet of BDO for the Year 2021 reflecting the updated List of
Directors, and List of Subsidiaries/Affiliates of BDO
January 25, 2022 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 14,700 common shares
January 26, 2022 Amended General Information Sheet of BDO for the Year 2021 reflecting the updated Capital
Structure, Stockholders' Information, and Additional Issued Shares of BDO
January 28, 2022 Press Release re: BDO raises Php52.7 billion in ASEAN Sustainability Bonds

January 28, 2022 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 15,000 common shares
January 28, 2022 BDO Unibank, Inc. successfully raised PHP52.7 billion worth of Peso-denominated Fixed-Rate
ASEAN Sustainability Bonds under its PHP365 billion Bond Programme, more than 10 times the
original offer of PHP5 billion on very strong demand from retail and institutional investors
January 28, 2022 Amended Press Release re: BDO raises Php52.7 billion in ASEAN Sustainability Bonds

January 31, 2022 Results of Regular Board Meeting held on January 29, 2022:
- Approval of the declaration of cash dividends on Preferred Shares Series “A” at the rate of 6.5%
per annum of the par value, for a total dividend amount of P339,399,305.56, payable within
sixty (60) banking days from dividend declaration date;
- Recall of the secondment of Ms. Rhodora M. Lugay, Senior Vice President (SVP), from BDO
Private Bank, Inc./Trust and appointed her to BDO Unibank – Central Operations Group,
effective January 25, 2022; and
- Notation of the retirement of Ms. Ma. Theresa Sese Simbul, SVP and Region Head of Branch
Banking Group/Region 1 – Norther Luzon, effective February 1, 2022, subject to clearance
February 4, 2022 Amended General Information Sheet of BDO for the Year 2021 reflecting the updated Capital
Structure, List of Officers, Stockholders' Information, and Additional Issued Shares of BDO
February 9, 2022 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 31,800 common shares
February 10, 2022 Notice of Analyst Virtual Briefing on February 28, 2022 (Monday), 2:00 PM PHT, via Cisco Webex

February 15, 2022 Notice and Agenda of the Annual Stockholders’ Meeting of BDO on April 22, 2022, at 2:00 in the
afternoon, to be held virtually
February 16, 2022 Amended General Information Sheet of BDO for the Year 2021 reflecting the updated Capital
Structure, Officers, Stockholders' Information, and Additional Issued Shares of BDO
February 21, 2022 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 43,600 common shares
February 23, 2022 Amended General Information Sheet of BDO for the Year 2021 reflecting the updated Capital
Structure, List of Officers, Stockholders' Information, and Additional Issued Shares of BDO
February 24, 2022 Press Release re: BDO posts P42.8 billion net income in 2021

February 28, 2022 Results of Regular Board Meeting held on February 24, 2022:

SEC FORM 17-A 147

 Date of Disclosure Subject

- Approval of the declaration of regular cash dividends on common shares of BDO in the amount
of Php0.30 per share for the 1st Quarter of 2022 payable on March 31, 2022 to all stockholders
of record as of March 14, 2022; and
- Approval of the 2021 Audited Financial Statements
February 28, 2022 Approval of the 2021 Audited Financial Statements – Amended disclosure to attach the Audited
Financial Statements and the corresponding Notes to Financial Statements
March 3, 2022 BDO Statement of Condition as of December 31, 2021

March 7, 2022 Reply to PSE Request for Clarification re: Agreement for the Sale of Shares in BDO Leasing and
Finance, Inc.
March 8, 2022 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 54,000 common shares
March 9, 2022 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 42,000 common shares
March 11, 2022 Amended General Information Sheet of BDO for the Year 2021 reflecting the updated Capital
Structure, Stockholders' Information, and Additional Issued Shares of BDO
March 17, 2022 Preliminary Information Statement

March 21, 2022 Change in Number of Issued and Outstanding Shares pursuant to BDO's employee stock
option/grant program granted to senior officer/s and/or retiree/s, totaling 70,900 common shares
March 23, 2022 Amended General Information Sheet of BDO for the Year 2021 reflecting the updated Capital
Structure, Officers, Stockholders' Information, and Additional Issued Shares of BDO
March 28, 2022 Results of Regular Board Meeting held on March 26, 2022:
- Approval of the extension of the employment term of of Mr. Nestor V. Tan, President and
Chief Executive Officer of the Bank, until March 1, 2028;
- Notation of the retirement of Mr. Walter C. Wassmer, Senior Executive Vice President and
Group Head of Institutional Banking Group, effective April 21, 2022;
- Approval of the additional equity investment in BDO Network Bank, Inc. (BDONB) up to One
Billion Seven Hundred Million Pesos (Php1,700,000,000.00) involving the subscription of
common shares to be issued out of BDONB’s authorized and unissued capital stock; and
- Approval and endorsement for stockholders’ approval the declaration of stock dividends
equivalent to 20% of the Bank’s outstanding capital stock, as well as an increase in its
authorized capital stock (common shares) from 5,500,000,000 to 8,500,000,000 shares, and
the amendment of the Seventh Article of the Bank’s Amended Articles of Incorporation to
reflect the increase in authorized capital stock, as follows:

“SEVENTH - That the authorized capital stock of the Bank is NINETY-FIVE BILLION
PESOS (Php95,000,000,000.00), divided into EIGHT BILLION FIVE
HUNDRED MILLION (8,500,000,000) common stock with a par value of
TEN PESOS (P10.00) per share, and ONE BILLION (1,000,000,000)
Series A Preferred Shares with a par value of TEN PESOS (P10.00) per
share.”

March 28, 2022 Press Release: BDO declares 20% Stock Dividend and hikes Authorized Capital

March 28, 2022 Press Release: BDO to infuse more capital in BDO Network Bank

***Related Party Transactions (Please refer to Notes 2.17 and 27 of the Notes to Financial
Statements attached to this Report.)

SEC FORM 17-A 148

 FOR SEC FILING

Consolidated Financial Statements and

BDO Unibank, Inc. and Subsidiaries

December 31, 2021, 2020 and 2019

Punongbayan & Araullo (P&A) is the Philippine member firm of Grant Thornton International Ltd
 -2-

BDO Unibank Group operates mainly within the Philippines with banking branches in
Hong Kong and Singapore, a real estate and holding company in Europe, and various
remittance subsidiaries operating in Asia, Europe, Canada and the United States. These
foreign operations accounted for 1.2%, 1.0% and 1.1%
revenues in 2021, 2020 and 2019, respectively, and 2.1% and 1.9% of BDO
total resources as of December 31, 2021 and 2020, respectively.
subsidiaries and associates are shown in Notes 2.3 and 15.2.

Makati City while the temporary business address is at BDO Towers Valero, 8741 Paseo de
Roxas Street, Salcedo Village, Makati City effective October 30, 2021 until further notice.

Approval of Financial Statements

The financial statements of the BDO Unibank Group and the Parent Bank as of and for
the year ended December 31, 2021 (including the comparative financial statements as of
December 31, 2020 and for the years ended December 31, 2020 and 2019) were authorized
BOD) on February 24, 2022.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies that have been used in the preparation of these financial
statements are summarized below and the succeeding pages. These policies have been
consistently applied to all the years presented, unless otherwise stated.

2.1 Basis of Preparation of Financial Statements

(a) Statement of Compliance with Financial Reporting Standards in the Philippines

The consolidated financial statements of BDO Unibank Group and the separate financial
statements of the Parent Bank have been prepared in accordance with Philippine
Financial Reporting Standards (PFRS). PFRS are adopted by the Financial Reporting
Standards Council (FRSC), from the pronouncements issued by the International
Accounting Standards Board (IASB), and approved by the Philippine Board of
Accountancy.

The financial statements have been prepared using the measurement bases specified by
PFRS for each type of resources, liability, income and expense. The measurement bases
are more fully described in the accounting policies that follow.

(b) Presentation of Financial Statements

The financial statements are presented in accordance with Philippine Accounting

Standard (PAS) 1, Presentation of Financial Statements. The BDO Unibank Group and the
Parent Bank present a statement of comprehensive income separate from the statement
of income.

The BDO Unibank Group and the Parent Bank present a third statement of financial
position as of the beginning of the preceding period when it applies an accounting policy
retrospectively, or makes a retrospective restatement or reclassification of items that has
a material effect on the information in the statement of financial position at the
beginning of the preceding period. The related notes to the third statement of financial
position are not required to be disclosed.
 -3-

(c) Functional and Presentation Currency

These financial statements are presented in Philippine pesos, the BDO Unibank Group

in millions, except for per share data or when otherwise indicated (see also Note 2.22).

Items included in the financial statements of BDO Unibank Group and the Parent Bank
are measured using its functional currency. Functional currency is the currency of the
primary economic environment in which BDO Unibank Group and the Parent Bank
operate.

2.2 Adoption of New and Amended PFRS

(a) Effective in 2021 that are Relevant to BDO Unibank Group and the Parent Bank

The BDO Unibank Group and the Parent Bank adopted for the first time the following
amendments to PFRS, which are mandatorily effective for annual periods beginning on
or after January 1, 2021:

PFRS 4, PFRS 7, PFRS 9 and

PFRS 16 (Amendments) : Insurance Contracts, Financial Instruments:
Disclosures, Financial Instruments and
Leases Interest Rate Benchmark Reform
Phase 2
PFRS 16 (Amendments) : Leases Coronavirus Disease 2019
(COVID-19) Related Rent Concessions
Beyond June 30, 2021

Discussed below and in the succeeding pages are the relevant information about these
amendments to existing standards.

(i) PFRS 9 (Amendments), Financial Instruments, PFRS 7 (Amendments), Financial

Instruments: Disclosures, PFRS 16 (Amendments), Leases, and PFRS 4 (Amendments),
Insurance Contracts Interest Rate Benchmark Reform Phase 2. The amendments address
issues that may affect financial reporting during the interest rate benchmark
reform, including the effect of changes to contractual cash flows or hedging
relationships resulting from the replacement of the London Interbank Offered
Rate (LIBOR) with alternative benchmark rates. The Phase 2 amendments are
relevant to BDO Unibank Group because it is exposed to the effects of the
LIBOR reform on its financial instruments that will mature post-2021 (the date by
which the reform is expected to be implemented).

Discussed below are the relevant information arising from BDO Unibank Group
adoption of these amendments.

When the contractual terms of the BDO Unibank Group borrowings are
amended as a direct consequence of the interest rate benchmark reform and
the new basis for determining the contractual cash flows is economically
equivalent to the basis immediately preceding the change, the BDO Unibank
Group changes the basis for determining the contractual cash flows
prospectively by revising the effective interest rate. If additional changes are
made, which are not directly related to the reform, the applicable requirements
of PFRS 9 are applied to the other changes.
 -4-

When a lease is modified as a direct consequence of the interest rate

benchmark reform and the new basis for determining the lease payments is
economically equivalent to the previous basis, the BDO Unibank Group
remeasures the lease liability to reflect the revised lease payments discounted
using a revised discount rate that reflects the change in the basis for
determining the contractual cash flows.

For the year ended December 31, 2021, the interest rate benchmark reform has no
impact on the BDO Unibank Group . The changes
in BDO risk management strategy arising from the LIBOR
reform and other required disclosures are disclosed in Note 4.6.

(ii) The BDO Unibank Group and the Parent Bank elected to adopt early
PFRS 16 (Amendments), Leases COVID-19-Related Rent Concessions beyond June 30,
2021, which is effective from April 1, 2021. The amendment extends for one year
the use of practical expedient of not assessing whether rent concessions reducing
payments up until June 30, 2022 occurring as a direct consequence of the
COVID-19 pandemic are lease modifications and instead to account for those rent
concessions as if they are not lease modifications. The BDO Unibank Group and
the Parent Bank have applied this practical expedient to all rent concessions that
need conditions of the amendments to PFRS 16. The rent concessions recognized
as offset against Occupancy under Other Operating Expense account in the 2021
statement of income of the BDO Unibank Group and the Parent Bank amounted
to P395 for the year ended December 31, 2021 (see Note 25).

(b) Effective Subsequent to 2021 but not Adopted Early

There are new PFRS and amendments to existing standards effective for annual periods
subsequent to 2021, which are adopted by the FRSC. Management will adopt the
following relevant pronouncements in accordance with their transitional provisions; and,
unless otherwise stated, none of these are expected to have significant impact on BDO
Unibank s.

(i) PFRS 3 (Amendments), Business Combination Reference to the Conceptual Framework

(effective from January 1, 2022)

(ii) PAS 16 (Amendments), Property, Plant and Equipment Proceeds Before Intended Use
(effective from January 1, 2022)

(iii) PAS 37 (Amendments), Provisions, Contingent Liabilities and Contingent Assets - Onerous
Contracts - Cost of Fulfilling a Contract (effective January 1, 2022)

(iv) Annual Improvements to PFRS 2018-2020 Cycle. Among the improvements, the
following amendments, which are effective from January 1, 2022, are relevant to
the BDO Unibank Group:

PFRS 9 (Amendments), Financial Instruments Fees in the

Derecognition of Liabilities

Illustrative Examples Accompanying PFRS 16, Leases Lease Incentives

 -5-

(v) PAS 1 (Amendments), Presentation of Financial Statements Classification of Liabilities as

Current or Non-current (effective January 1, 2023)
(vi) PAS 1 (Amendments), Presentation of Financial Statements Disclosure of Accounting
Policies (effective January 1, 2023)
(vii) PAS 8 (Amendments), Accounting Estimates Definition of Accounting Estimates
(effective January 1, 2023)
(viii) PAS 12 (Amendments), Income Taxes Deferred Tax Related to Assets and Liabilities
Arising from a Single Transaction (effective January 1, 2023)
(ix) PFRS 10 (Amendments), Consolidated Financial Statements, and
PAS 28 (Amendments), Investments in Associates and Joint Ventures Sale or
Contribution of Assets Between an Investor and its Associates or Joint Venture
(effective date deferred indefinitely)

(x) PFRS 17, Insurance Contracts (effective January 1, 2023). The new standard will
eventually replace PFRS 4, Insurance Contracts. The Insurance Commission (IC),
through its Circular Letter 2018-69, has deferred the implementation of PFRS 17
for life insurance and non-life insurance industry. PFRS 17 will set out the
principles for the recognition, measurement, presentation and disclosure of
insurance contracts within its scope.

This new standard requires a current measurement model where estimates are
remeasured in each reporting period. Moreover, contracts are measured using the
building blocks of:

discounted probability-weighted cash flows;

an explicit risk adjustment; and,
a contractual service margin (CSM) representing the unearned profit of the
contract which is recognized as revenue over the coverage period.
PFRS 17 further allows a choice between recognizing changes in discount rates
either in the statement of income or directly in other comprehensive income. The
choice is likely to reflect how insurers account for financial assets under PFRS 9.
In addition, the standard provides an optional, simplified premium allocation
approach for the liability for the remaining coverage for short duration contracts,
which are often written by non-life insurers.

A modification of the general measurement model called the variable fee approach
is also introduced by PFRS 17 for certain contracts written by life insurers where
policyholders share in the returns from underlying items. When applying the

items is included in the CSM. The results of insurers using this model are therefore
likely to be less volatile than under the general model.
 -6-

2.3 Basis of Consolidation

consolidated financial statements comprise the accounts of the
Parent Bank, and its subsidiaries as enumerated in Notes 2.3I and 15.2, after the elimination of
material intercompany transactions. All intercompany resources and liabilities, equity, income,
expenses and cash flows relating to transactions between entities under the
BDO Unibank Group, are eliminated in full on consolidation. Unrealized profits and
losses from intercompany transactions that are recognized in assets are also eliminated in full.
Intercompany losses that indicate impairment are recognized in the consolidated financial
statements.

The financial statements of the subsidiaries are prepared for the same reporting period as the
Parent Bank, using consistent accounting principles.

The Parent Bank accounts for its investments in subsidiaries, associates and transactions with
non-controlling interests as follows:

(a) Investments in Subsidiaries

Subsidiaries are all entities over which the Parent Bank has the power to control the
financial and operating policies generally accompanying a shareholding of more than one
half of the voting rights. The existence and effect of potential voting rights that are
currently exercisable or convertible are considered when assessing whether the Parent
Bank controls another entity. The Parent Bank obtains and exercises control whei) it has
power over the entity, (ii) it is exposed, or has rights to, variable returns from its
involvement with the entity, and, (iii) it has the ability to affect those returns through its
power over the entity, usually through voting rights. Subsidiaries are consolidated from
the date the Parent Bank obtains control.

The Parent Bank reassesses whether or not it controls an entity if facts and circumstances
indicate that there are changes to one or more of the three elements of controls indicated
above. Accordingly, entities are deconsolidated from the date that control ceases.

The acquisition method is applied to account for acquired subsidiaries [see Note 2.3(d)].
Acquisition method requires recognizing and measuring the identifiable resources
acquired, the liabilities assumed and any non-controlling interest in the acquiree.
The consideration transferred for the acquisition of a subsidiary is the fair values of the
assets transferred, the liabilities incurred to the former owners of the acquiree and the
equity interests issued by the BDO Unibank Group, if any. The consideration
transferred also includes the fair value of any asset or liability resulting from a contingent
consideration arrangement. Acquisition-related costs are expensed as incurred and
subsequent change in the fair value of contingent consideration is recognized directly in
profit or loss.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business
combination are measured initially at their fair values at the acquisition date. On
an acquisition-by-acquisition basis, the BDO Unibank Group recognizes any
non-controlling interest in the acquiree, either at fair value or at the non-controlling

assets.
 -7-

The excess of the consideration transferred, the amount of any non-controlling interest
in the acquiree and the acquisition-date fair value of any existing equity interest in the
acquiree over the acquisition- the
identifiable net assets acquired, is recognized as goodwill. If the acquisition
consideration is less than the fair value of the net assets of the subsidiary acquired, the
difference is recognized directly as a gain in the statement of income [see Note 2.3(d)].

On the other hand, business combinations arising from transfers of interests in entities
that are under the common control of the shareholder that controls BDO Unibank
Group are accounted for under the pooling-of-interest method and reflected in the
financial statements as if the business combination had occurred at the beginning of the
earliest comparative period presented, or if later, at the date that common control was
established; for this purpose, comparative periods presented are restated. The resources

their carrying amounts. The components of equity of the acquired entities are added to

Investments in subsidiaries are initially recognized at cost and subsequently accounted

(b) Investment in Associates

Associates are those entities over which the BDO Unibank Group and the Parent Bank
are able to exert significant influence but which are neither subsidiaries nor interests in a
joint venture. Investments in associates are initially recognized at cost and subsequently
accounted for using the equity method.

Acquired investment in associate is subject to the purchase method. The purchase

method involves the recognition of the acquiree s identifiable assets and liabilities,
including contingent liabilities, regardless of whether they were recorded in the financial
statements prior to acquisition. Goodwill represents the excess of acquisition cost over

net assets of the acquiree at the date of acquisition. Any goodwill or fair value adjustment

included in the amount recognized as investment in an associate.

All subsequent changes to the ownership interest in the equity of the associates are

investments. Changes resulting from the profit or loss generated by the associates are
credited or charged against the Equity in net profit (loss) of associates as part of
Miscellaneo s - net and Share in net income of subsidiaries and associates under Other
Operating Income account in the statement of income for BDO Unibank Group and
Parent Bank, respectively.

Impairment loss is provided when there is objective evidence that the investment in an
associate will not be recovered (see Notes 2.21 and 15.2).
 -8-

Changes resulting from other comprehensive income of the associate or items

income or equity of the BDO Unibank Group and the Parent Bank, as applicable.
However, when the
associate equals or exceeds its interest in the associate, including any other unsecured
receivables, the BDO Unibank Group and the Parent Bank do not recognize further
losses, unless it has incurred obligations or made payments on behalf of the associate.
If the associate subsequently reports profits, the investor resumes recognizing its share
of those profits only after its share of the profits exceeds the accumulated share of losses
that has previously not been recognized.

Distributions received from the associates are accounted for as a reduction of the
carrying value of the investment.

(c) Transactions with Non-controlling Interests

non-controlling interests that do not result in

loss of control are accounted for as equity transactions that is, as transactions with the
owners of BDO Unibank Group in their capacity as owners. The difference between the
fair value of any consideration paid and the relevant share acquired of the carrying value

non-controlling interests, which result in gains or losses for BDO Unibank Group, are
also recognized in equity.

When BDO Unibank Group ceases to have control, any interest retained in the
subsidiary is remeasured to its fair value, with the change in carrying amount recognized
in profit or loss. The initial carrying amount for the purposes of subsequently accounting
for the interest retained as an associate, joint venture or financial asset is the fair value.
In addition, any amounts previously recognized in other comprehensive income in
respect of that entity are accounted for as if BDO Unibank Group had directly disposed
of the related resources or liabilities. This may mean that amounts previously recognized
in other comprehensive income are reclassified to profit or loss.

-controlling interest component

is shown in its statement of changes in equity, and in its statement of income and
statement of comprehensive income for the share of profit or loss and movement of
other comprehensive income, respectively, during the year.
 -9-

The BDO Unibank Group holds interests in the following subsidiaries:

Percentage of Ownership
Subsidiaries 2021 2020 2019

Rural Bank
BDO Network Bank, Inc.
(BDO Network)
(A Rural Bank of BDO) 84.87% 84.87% 84.87%
Investment House
BDO Capital & Investment
Corporation (BDO Capital) 99.88% 99.88% 99.88%
Private Banking
BDO Private Bank, Inc.
(BDO Private) 100% 100% 100%
Leasing and Finance
BDO Leasing and Finance,
Inc. (BDO Leasing) 88.54% 88.54% 88.54%
Averon Holdings Corporation
(Averon) 99.88% 99.88% 99.88%
BDO Rental, Inc. (BDO Rental) 100% 100% 88.54%
BDO Finance Corporation
(BDO Finance) 100% 100% 100%
Securities Companies
BDO Securities Corporation
(BDO Securities) 99.88% 99.88% 99.88%
Armstrong Securities, Inc. (ASI) 80% 80% 80%
BDO Nomura Securities, Inc.
(BDO Nomura) - - 51%
Real Estate Companies
BDO Strategic Holdings, Inc.
(BDOSHI) 100% 100% 100%
BDORO Europe Ltd. (BDORO) 100% 100% 100%
Equimark-NFC Development
Corporation (Equimark) 60% 60% 60%
Insurance Companies
BDO Life Assurance Company Inc.,
(BDO Life) 100% 100% 100%
BDO Insurance Brokers, Inc. (BDOI) 100% 100% 100%
Remittance Companies
BDO Remit (Japan) Ltd. 100% 100% 100%
BDO Remit (Canada) Ltd. 100% 100% 100%
BDO Remit Limited 100% 100% 100%
BDO Remit (Macau) Ltd. 100% 100% 100%
BDO Remit International
Holdings B.V. (BDO RIH) 96.32% 96.32% 96.32%
BDO Remit (USA), Inc. 100% 100% 100%
BDO Remit (Italia) S.p.A - 100% 100%
Others
PCI Realty Corporation - - 100%

Non-controlling interests represent the interests not held by BDO Unibank Group in
BDO Network, BDO Capital, BDO Leasing, Averon, BDO Rental, BDO Securities,
BDO Nomura, ASI, Equimark and BDO RIH in 2019. For 2021 and 2020, BDO
-controlling interest is the same as 2019 except for BDO Rental
and BDO Nomura, which was merged with BDO Securities.

On December 5, 2020, the BOD of the Parent Bank approved the write-off of the
investment in PCI Realty Corporation (see Note 15.2).
 - 10 -

On December 1, 2020, the merger of BDO Nomura and BDO Securities was completed,
with BDO Securities as the surviving entity (see Note 30.2).

On June 13, 2020, BDO Remit (Italia) S.p.A completed its liquidation and made partial
repatriation of funds to BDOSHI. Final capital return was made on July 1, 2021
(see Note 30.4).

On July 26, 2019, the BOD of BDOSHI approved and authorized BDOSHI to
incorporate a new finance company with an initial paid-in capital of P1,000, subject to
applicable regulatory approvals. On December 9, 2019, the Securities and Exchange
Commission (SEC) approved the incorporation of BDO Finance (see Note 30.3).

On May 16, 2019, the Parent Bank completed the sale of its 15% ownership interest in
BDO Network.

(d) Business Combination

Business acquisitions are accounted for using the acquisition method of accounting
[see Note 2.3(a)].

Goodwill acquired in a business combination is initially measured at cost being the excess
s interest in the net fair
value of the identifiable assets, liabilities and contingent liabilities. Subsequent to initial
recognition, goodwill is measured at cost less any accumulated impairment losses.
Goodwill is reviewed for impairment annually or more frequently if events or changes in
circumstances indicate that the carrying value may be impaired (see Note 2.21).
Impairment losses on goodwill are not reversed.

net fair value of acquired identifiable assets, liabilities and contingent liabilities over cost
of investment is recognized directly in the statement of income.

For the purpose of impairment testing, goodwill is allocated to cash-generating units or

groups of cash-generating units that are expected to benefit from the business
combination in which the goodwill arose. The cash-generating units or groups of
cash-generating units are identified according to operating segments.

Gains and losses on the disposal of an interest in a subsidiary include the carrying
amount of goodwill relating to it.

If the business combination is achieved in stages, the acquirer is required to remeasure its
previously held equity interest in the acquiree at its acquisition-date fair value and
recognize the resulting gain or loss, if any, in profit or loss or other comprehensive
income, as appropriate.

Any contingent consideration to be transferred by BDO Unibank Group is recognized at

fair value at the acquisition date. Subsequent changes to the fair value of the contingent
consideration that is deemed to be an asset or liability is recognized in accordance with
PAS 37, Provisions, Contingent Liabilities and Contingent Assets, either in profit or loss or as a
change to other comprehensive income. Contingent consideration that is classified as
equity is not remeasured, and its subsequent settlement is accounted for within equity.
 - 11 -

Transfers of assets between commonly-controlled entities are accounted for under

historical cost accounting or pooling-of-interest method [see Note 2.3(a)].

2.4 Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided
-maker. The chief operating
decision-maker is responsible for allocating resources and assessing performance of the
operating segments.

products and services as disclosed in Note 6, which represent the main products and services
provided by BDO Unibank Group.

Each of these operating segments is managed separately as each of these services requires
different technologies and resources as well as marketing approaches. All inter-segment

The measurement policies of BDO Unibank Group used for segment reporting under
PFRS 8, Operating Segments, are the same as those used in its financial statements.

In addition, corporate assets, which are not directly attributable to the business activities of any
operating segment are not allocated to a segment.

There have been no significant changes from prior periods in the measurement methods used
to determine reported segment information.

2.5 Financial Assets and Financial Liabilities

Financial assets and financial liabilities are recognized when the entity becomes a party to the
contractual provisions of the instrument. For purposes of classifying financial assets, an
instrument is considered as an equity instrument if it is non-derivative and meets the definition
of equity for the issuer in accordance with the criteria of PAS 32, Financial Instruments:
Presentation. All other non-derivative financial instruments are treated as debt instruments.

Regular purchases and sales of financial assets are recognized on their settlement date
(i.e., the date that the BDO Unibank Group commits to purchase or sell the asset).

At initial recognition, the BDO Unibank Group measures a financial asset or financial liability
at its fair value plus or minus, in the case of a financial asset or financial liability not at fair
value through profit or loss (FVTPL), transaction costs that are incremental or directly
attributable to the acquisition or issue of the financial asset or financial liability, such as fees
and commissions. Transaction costs of financial assets and financial liabilities carried at
FVTPL are expensed in profit or loss.

(a) Classification, Measurement and Reclassification of Financial Assets

The classification and measurement of financial assets are ss

model for managing the financial assets and the contractual cash flow characteristics of
the financial assets. The classification and measurement of financial assets are described
in the succeeding pages.
 - 12 -

(i) Financial Assets at Amortized Cost

Financial assets are measured at amortized cost if both of the following conditions are
met:

to hold financial assets in order to collect contractual cash flows

( ; and,

the contractual terms of the instrument give rise, on specified dates, to cash flows
that are solely payments of principal and interest (SPPI) on the principal amount
outstanding.

Except for other receivables that do not contain a significant financing component
and are measured at the transaction price in accordance with PFRS 15, Revenue from
Contracts with Customers, all financial assets meeting these criteria are measured initially
at fair value plus transaction costs. These are subsequently measured at amortized cost
using the effective interest method, less any expected credit loss (ECL).

Where the business model is to hold assets to collect contractual cash flows, the BDO
Unibank Group assesses
In making this assessment, the BDO Unibank Group considers whether the
contractual cash flows are consistent with a basic lending arrangement, i.e., interest
includes only consideration for the time value of money, credit risk, other basic
lending risks and a profit margin that is consistent with a basic lending arrangement
[see Note 3.1(c)]. Where the contractual terms introduce exposure to risk or volatility
that are inconsistent with a basic lending arrangement, the related financial asset is
classified and measured at FVTPL.

The
and Other Cash Items, Due from BSP, Due from Other Banks, Loans and Other
Receivables, Investment securities at amortized cost and certain accounts under Other
Resources account in the statement of financial position.

For purposes of reporting cash flows, cash and cash equivalents include cash and
other cash items, due from BSP and other banks, foreign currency notes and coins
(FCNC), reverse repurchase agreements, certain interbank bank loans receivables and
investment securities at amortized cost with original maturities of three months or less
from placement date.

(ii) Financial Assets at Fair Value Through Other Comprehensive Income

BDO Unibank Group accounts for financial assets at fair value through other
comprehensive income (FVOCI) if the assets meet the following conditions:

they are held under a business model whose objective is to hold to collect the
associated cash flows and sell ; and,

the contractual terms of the financial assets give rise to cash flows that are SPPI
on the principal amount outstanding.
 - 13 -

At initial recognition, BDO Unibank Group can make an irrevocable election

(on an instrument-by-instrument basis) to designate equity investments as at
FVOCI; however, such designation is not permitted if the equity investment is held
by the BDO Unibank Group for trading or as mandatorily required to be classified as
FVTPL. The BDO Unibank Group has designated equity instruments as at
FVOCI.

Financial assets at FVOCI are initially measured at fair value plus transaction costs.
Subsequently, they are measured at fair value, with no deduction for any disposal costs.
Gains and losses arising from changes in fair value, including the foreign exchange
component, are recognized in other comprehensive income, net of any effects arising
from income taxes, and are reported as part of net unrealized gain or loss (NUGL) on
FVOCI account in equity. When the asset is disposed of, the cumulative gain or loss
previously recognized in the NUGL account is not reclassified to profit or loss but is
reclassified directly to Surplus Free account except for those debt securities classified
as FVOCI wherein fair value changes are reclassified to profit or loss.

Any dividends earned on holding equity instruments are recognized in profit or loss as
part of Miscellaneous - net under Other Operating Income account in the statement of
income
probable that the economic benefits associated with the dividend will flow to the
BDO Unibank Group, and, the amount of dividend can be measured reliably, unless
the dividends clearly represent recovery of a part of the cost of the investment.

(iii) Financial Assets at Fair Value Through Profit or Loss

Financial assets that are held within a different business model other than

irrespective of business model, financial assets whose contractual cash flows are not
SPPI are accounted for at FVTPL. Also, equity securities are classified as financial
assets at FVTPL, unless the BDO Unibank Group designates an equity investment
that is not held for trading as at FVOCI at initial recognition. The BDO Unibank
ancial assets at FVTPL include equity securities which are held for trading
purposes.

Financial assets at FVTPL are measured at fair value with gains or losses recognized in
profit or loss as part of Trading gain under Other Operating Income in the statement
of income. Related transaction costs are recognized directly as expense in profit or
loss. The fair values of these financial assets are determined by reference to active
market transactions or using valuation technique when no active market exists.

Interest earned on these investments is recorded under Interest Income while dividend
income is reported as part of Dividends under Other Operating Income account in the
statement of income.
Financial assets with embedded derivatives are considered in their entirety when
determining whether their cash flows are SPPI.
 - 14 -

BDO Unibank Group can only reclassify financial assets if the objective of its business
model for managing those financial assets changes. Accordingly, BDO Unibank Group
is required to reclassify financial assets: (i) from amortized cost to FVTPL, if the
objective of the business model changes so that the amortized cost criteria are no longer
met; and, (ii) from FVTPL to amortized cost, if the objective of the business model
changes so that the amortized cost criteria start to be met and the characteristic of the

only at the beginning of the next reporting period following the change in the business
model.

(b) Effective Interest Rate Method and Interest Income

Interest income is recognized using the effective interest rate (EIR) method for all
financial instrument measured at amortized cost and financial instrument designated at
FVTPL. Interest income on interest bearing financial assets measured at FVOCI are also
recorded by using the EIR method. The EIR is the rate that exactly discounts estimated
future cash receipts through the expected life of the financial instrument or, when
appropriate, a shorter period, to the net carrying amount of the financial asset.

The EIR is calculated by taking into account any discount or premium on acquisition, fees
and costs that are an integral part of EIR. The BDO Unibank Group recognizes interest
income using a rate of return that represents the best estimate of a constant rate of return
over the expected life of the loan. Hence, it recognizes the effect of potentially different
interest rates charged at various stages, and other characteristics of the product life cycle
(including prepayments, penalty interest and charges).

If expectations regarding the cash flows on the financial asset are revised for reasons other
than credit risk, the adjustment is booked as a positive (negative) adjustment to the
carrying amount of the asset in the statement of financial position with an increase
(reduction) in interest income. The adjustment is subsequently amortized through interest
and similar income in the statement of income.

The BDO Unibank Group calculates interest income by applying the EIR to the gross
carrying amount of financial assets other than credit-impaired assets.

For financial assets that have become credit-impaired subsequent to initial recognition
[see Note 2.5(c)], interest income is calculated by applying the effective interest rate to
the net carrying amount of the financial assets (after deduction of the loss allowance).
If the asset is no longer credit-impaired, then the calculation of interest income reverts to
the gross basis. For financial assets that were credit-impaired on initial recognition,
interest income is calculated by applying a credit-adjusted effective interest rate to the
amortized cost of the asset. The calculation of interest income does not revert to a gross
basis, even if the credit risk of the asset improves.
 - 15 -

(c) Impairment of Financial Assets

At the end of the reporting period, the BDO Unibank Group assesses its ECL on a
forward-looking basis associated with its financial assets which consist of debt instruments
carried at amortized cost and FVOCI, and other contingent accounts such as committed
credit lines and unused commercial letter of credits. No impairment loss is recognized on
equity investments. The BDO Unibank Group considers a broader range of information
in assessing credit risk and measuring expected credit losses, including past events,
current conditions, reasonable and supportable forecasts that affect collectability of the
future cash flows of the financial assets.

The BDO Unibank Group measures loss allowances at an amount equal to lifetime ECL,
except for the following financial instruments for which they are measured as 12-month
ECL:

other financial instruments (other than lease receivables) on which credit risk has not
increased significantly since their initial recognition.

For these financial instruments, the allowance for impairment is based on 12-month ECL
associated with the probability of default of a financial instrument in the next 12 months
When there has been a significant increase
in credit risk subsequent to the initial recognition of the financial asset, a lifetime ECL
(which are the expected shortfalls in contractual cash flows, considering the potential for
default at any point during the life of the financial asset) will be recognized (referred to as

accounts and facilities where the credit risk has improved and have been reclassified from
also
which include financial instruments that are subsequently credit-impaired, as well as
purchased or originated credit impaired (POCI) assets.

The BDO Unibank Group definition of credit risk and information on how credit risk is
mitigated by the BDO Unibank Group are disclosed in Note 4.3.

(d) Measurement of ECL

The key elements used in the calculation of ECL are as follows:

Probability of Default (PD) it is an estimate of likelihood of a borrower defaulting on its

financial obligation over a given time horizon, either over the next 12 months
(12-month PD) or over the remaining lifetime (lifetime PD) of the obligation.

Loss Given Default (LGD) it is an estimate of loss arising in case where a default
occurs at a given time (either over the next 12 months or 12-month LGD), or over the
remaining lifetime or lifetime LGD). It is based on the difference between the
contractual cash flows of a financial instrument due from a counterparty and those
BDO Unibank Group would expect to receive, including the realization of any
collateral. It is presented as a percentage loss per unit of exposure at the time of
default.
 - 16 -

Exposure at Default (EAD) it represents the gross carrying amount of the financial
instruments subject to impairment calculation; hence, this is the amount that the BDO
Unibank Group expects to be owed at the time of default over the next 12 months
(12-month EAD) or over the remaining lifetime (lifetime EAD). In case of a loan
commitment, the BDO Unibank Group shall include the undrawn balance (up to the
current contractual limit) at the time of default should it occur, unless the drawdown
after default will be mitigated by the normal credit risk management actions and
policies of the BDO Unibank Group.

The measurement of the ECL reflects: (i) an unbiased and probability-weighted amount
that is determined by evaluating a range of possible outcomes; (ii) the time value of money;
and, (iii) reasonable and supportable information that is available without undue cost or
effort at the reporting date about past events, current conditions and forecasts of future
economic conditions.

The BDO Unibank Group recognizes an impairment loss in profit or loss for all financial
instruments subjected to impairment assessment with a corresponding adjustment to their
carrying amount through a loss allowance account, except for debt instruments measured
at FVOCI, for which the loss allowance is recognized in other comprehensive income and
accumulated in NUGL account, and does not reduce the carrying amount of the financial
asset in the statement of financial position, and other contingent accounts, for which the
loss allowance is recognizes in the other liability account.

The BDO Unibank

management is disclosed in Note 4.3.5.

(e) Derecognition of Financial Assets

(i) Modification of Loans

When the BDO Unibank Group renegotiates or otherwise modifies the contractual
cash flows of loans to customers, the BDO Unibank Group assesses whether or not
the new terms are substantially different to the original terms. The BDO Unibank
Group considers, among others:

if the borrower is in financial difficulty, whether the modification merely reduces

the contractual cash flows to amounts the borrower is expected to be able to pay;

whether any substantial new terms are introduced that will affect the risk profile of
the loan;

significant extension of the loan term when the borrower is not in financial
difficulty;

significant change in the interest rate;

change in the currency the loan is denominated in; and/or,

insertion of collateral, other security or credit enhancements that will significantly

affect the credit risk associated with the loan.
 - 17 -

If the terms are substantially different, the BDO Unibank Group derecognizes the

effective interest rate for the asset. The date of renegotiation is consequently
considered to be the date of initial recognition for impairment calculation, including
for the purpose of determining whether a significant increase in credit risk has
occurred. However, the BDO Unibank Group also assesses whether the new financial
asset recognized is deemed to be credit-impaired at initial recognition, especially in
circumstances where the renegotiation was driven by the debtor being unable to make
the originally agreed payments. Differences in the carrying amount are recognized as
gain or loss on derecognition of financial assets in profit or loss. As to the impact on

cash flow from the existing financial asset at the date of derecognition. Such amount
is included in the calculation of cash shortfalls from the existing financial asset that are
discounted from the expected date of derecognition to the reporting date using the
original effective interest rate of the existing financial asset.

If the terms are not substantially different, the renegotiation or modification does not
result in derecognition, and the BDO Unibank Group recalculates the gross carrying
amount based on the revised cash flows of the financial asset and recognizes a
modification gain or loss in profit or loss. The new gross carrying amount is
recalculated by discounting the modified cash flows of the original effective
interest rate (or credit-adjusted effective interest rate for purchased or originated
credit-impaired financial assets). As to the impact on ECL measurement, the
derecognition of the existing financial asset will result in the expected cash flows
arising from the modified financial asset to be included in the calculation of cash
shortfalls from the existing financial asset.

(ii) Derecognition of Financial Assets Other than Through Modification

The financial assets (or where applicable, a part of a financial asset or part of a group
of financial assets) are derecognized when the contractual rights to receive cash flows
from the financial instruments expire, or when the financial assets and all substantial
risks and rewards of ownership have been transferred to another party. If the BDO
Unibank Group neither transfers nor retains substantially all the risks and rewards of
ownership and continues to control the transferred asset, the BDO Unibank Group
recognizes its retained interest in the asset and an associated liability for amounts it
may have to pay. If the BDO Unibank Group retains substantially all the risks and
rewards of ownership of a transferred financial asset, the BDO Unibank Group
continues to recognize the financial asset and also recognizes a collateralized
borrowing for the proceeds received.

(f) Classification and Measurement of Financial Liabilities

Financial liabilities include deposit liabilities, bills payable, insurance contract liabilities and
other liabilities (including derivatives with negative fair values, except taxes payable,
unearned income and capitalized interest and other charges).

Deposit liabilities and other liabilities are recognized initially at fair value and subsequently
measured at amortized cost less settlement payments.
 - 18 -

Bills payable are recognized initially at fair value, equivalent to the issue proceeds
(fair value of consideration received), net of direct issue costs. Bills payable are
subsequently measured at amortized cost. Any difference between proceeds, net of
transaction costs, and the redemption value is recognized in profit or loss over the
period of the borrowings using the effective interest method.

Derivatives with negative fair values are recognized initially and subsequently measured at
fair value with changes in fair value recognized in profit or loss (see Note 2.6).

Lease deposits from operating and finance leases (presented as Lease deposits under Other
Liabilities account in the statement of financial position) are initially recognized at
fair value. The excess of the principal amount of the deposits over its fair or present
value is immediately recognized as day-one gain and is included as part of
Miscellaneous - net under Other Operating Income account in the statement of
income. Meanwhile, interest expense on the subsequent amortization of the lease
deposits is accrued using the effective interest method and is included as part of
Interest Expense account in the statement of income.

Dividend distributions to shareholders are recognized as financial liabilities when the

dividends are declared by BDO Unibank Group and subject to the requirements of
BSP Circular 888.

(g) Derecognition of Financial Liabilities

Financial liabilities are derecognized in the statement of financial position only when the
obligations are extinguished either through discharge, cancellation or expiration. The
difference between the carrying amount of the financial liability derecognized and the
consideration paid or payable is recognized in profit or loss.

(h) Financial Guarantees and Undrawn Loan Commitments

The BDO Unibank Group issues financial guarantees and loan commitments. Financial
guarantees are those issued by the BDO Unibank Group to creditors as allowed under
existing rules and regulations whereby it guarantees third party obligations by signing as
guarantor in the contract or agreement. Undrawn loan commitments and letters of credit
are commitments under which, over the duration of the commitment, the BDO Unibank
Group is required to provide a loan with pre-specified terms to the customer.
The nominal contractual value of financial guarantees and undrawn loan commitments,
where the loan agreed to be provided is on market terms, are not reflected in the
statement of financial position. These contracts are in the scope of the ECL requirements
where the BDO Unibank Group estimates the expected portion of the irrevocable
undrawn loan commitments that will be drawn over their expected life based on the BDO
-looking
forecasts. The ECL related to financial guarantees and loan commitments without
outstanding drawn amounts is recognized under Other Liabilities account in the statement
of financial position.
 - 19 -

2.6 Derivative Financial Instruments

BDO Unibank Group is a party to various foreign currency forwards, cross-currency swaps
and interest rate swaps. These contracts are entered into as a service to customers and as a
reign exchange and interest rate
exposures, as well as for trading purposes.

Derivatives are initially recognized at fair value on the date on which derivative contract is
entered into and are subsequently measured at their fair value. Fair values are obtained from
quoted market prices in active markets, including recent market transactions, and valuation
techniques, including discounted cash flow models and option pricing models, as appropriate.
All derivatives are carried as assets when fair value is positive and as liabilities when fair value
is negative.

The best evidence of the fair value of a derivative at initial recognition is the transaction price
(the fair value of the consideration given or received) unless the fair value of the instrument is
evidenced by comparison with other observable current market transactions in the same
instrument or based on a valuation technique whose variables include only data from
observable markets. When such evidence exists, BDO Unibank Group recognizes profit or
loss at initial recognition.

For more complex instruments, BDO Unibank Group uses valuation models, which usually
use the discounted cash flow approach. Some or all of the inputs into these models may not
be market observable, and are derived from market prices or rates or are estimated based on
assumptions. When entering into a transaction, the financial instrument is recognized initially
at the transaction price, which is the best indicator of fair value, although the value obtained
from the valuation model may differ from the transaction price. This initial difference in fair
value indicated by valuation techniques is recognized as profit or loss depending upon the
individual facts and circumstances of each transaction and not later than when the market data
becomes observable.

The value produced by a model or other valuation technique, in some instances, is adjusted
to allow for a number of factors as appropriate, because valuation techniques cannot
appropriately reflect all factors market participants take into account when entering into a
transaction. Valuation adjustments are recorded to allow for model risks, bid-ask spreads,
liquidity risks as well as other factors. Management believes that these valuation adjustments
are necessary and appropriate to fairly state financial instruments carried at fair value in the
statement of financial position.

Certain derivatives, if any, may be designated as either: (i) hedges of the fair value of
recognized assets or liabilities or firm commitments (fair value hedge); or, (ii) hedges of highly
probable future cash flows attributable to a recognized asset or liability, or a forecasted
transaction (cash flow hedge). Changes in the fair value of derivatives are recognized in
profit or loss. The method of recognizing the resulting fair value gain or loss on derivatives
that qualify as hedging instrument, if any, depends on the hedging relationship designated by
BDO Unibank Group.
 - 20 -

2.7 Premises, Furniture, Fixtures and Equipment

Land is stated at cost less impairment losses, if any. As no finite useful life for land can be
determined, related carrying amounts are not depreciated. All other premises, furniture,
fixtures and equipment are carried at cost less accumulated depreciation, amortization and any
impairment in value. Property items of the former Equitable PCI Bank (EPCIB), entity
merged with BDO Unibank in 2008, stated at appraised values were included in BDO Unibank
Group balances at their deemed costs at the date of transition to PFRS in 2005. The
revaluation increment is credited to Revaluation Increment account in the equity section of the
statement of changes in equity, net of applicable deferred tax (see Note 2.16h).

The cost of an asset comprises its purchase price and directly attributable costs of bringing the
asset to working condition for its intended use. Expenditures for additions, major
improvements and renewals are capitalized while expenditures for repairs and maintenance are
charged to expense as incurred.

Depreciation and amortization are computed on a straight-line basis over the estimated useful
lives of the depreciable assets as follows:

Buildings 10 to 50 years
Furniture, fixtures and equipment 3 to 15 years
Leasehold rights and improvements 5 to 10 years

Construction in progress represents properties under construction and is stated at cost. This
includes costs of construction and other direct costs. The account is not depreciated until
such time that the assets are completed and available for use.

Fully depreciated assets are retained in accounts until they are no longer in use and no further
char
written down immediately to its recov
than its estimated recoverable amount (see Note 2.21.h).

The residual values, estimated useful lives and method of depreciation and amortization of
premises, furniture, fixtures and equipment are reviewed and adjusted, if appropriate, at the
end of each reporting period.

An item of premises, furniture, fixtures and equipment, including the related accumulated
depreciation, amortization and any impairment loss, is derecognized upon disposal or when no
future economic benefits are expected to arise from the continued use of the asset. Any gain
or loss arising on derecognition of the asset (calculated as the difference between the net
disposal proceeds and the carrying amount of the item) is included in profit or loss in the year
the item is derecognized.

2.8 Investment Properties

Investment properties are stated at cost. The cost of an investment property comprises its
purchase price and directly attributable costs incurred. This also includes land and building
acquired by BDO Unibank Group from defaulting borrowers not held for sale in the next
12 months. For these properties, the cost is recognized initially at fair value. Investment
properties, except land, are depreciated on a straight-line basis over a period of 10 to 50 years.
 - 21 -

BDO Unibank Group adopted the cost model in measuring its investment properties; hence,
these are carried at cost less accumulated depreciation and any impairment in value.
Depreciation and impairment loss are recognized in the same manner as in premises, furniture,
fixtures and equipment (see Notes 2.7 and 2.21).
Direct operating expenses related to investment properties, such as repairs and maintenance,
and real estate taxes are normally charged against current operations in the period in which
these costs are incurred.
Investment properties are derecognized upon disposal or when permanently withdrawn from
use and no future economic benefit is expected from their disposal. Any gain or loss on the
retirement or disposal of an investment property is recognized in profit or loss and is
presented as part of Income from assets sold or exchanged under Other Operating Income
account in the statement of income in the year of retirement or disposal.
Transfers from other accounts (such as premises, furniture, fixtures and equipment) are made
to investment properties when and only when, there is a change in use, evidenced by ending of
owner-occupation or commencement of an operating lease to another party or holding the
property for capital appreciation, while transfers from investment properties are made when,
and only when, there is a change in use, evidenced by commencement of owner-occupation or

intentions for the use of a property does not provide evidence of a change in use.
2.9 Real Properties for Development and Sale
Real properties for development and sale (included as part of Other Resources account)
consist of subdivision land for sale and development, and land acquired for home building,
home development, and other types of real estate development. These are carried at the lower
of aggregate cost and net realizable value (NRV). Costs, which are determined through
specific identification, include acquisition costs and costs incurred for development,
improvement and construction of subdivision land.
Real properties for development and sale are derecognized upon disposal or no future
economic benefit is expected from their disposal. Any gain or loss on the retirement or
disposal of these properties is recognized in profit or loss and is presented as part of Income
from assets sold or exchanged under Other Operating Income account in the year of
retirement or disposal.
2.10 Non-current Assets Held for Sale
Non-current assets held for sale include other properties (chattels) acquired through
repossession or foreclosure that BDO Unibank Group intends to sell within one year from the
date of classification as held for sale.
BDO Unibank Group classifies a non-current asset as held for sale if its carrying amount will
be recovered principally through a sale transaction rather than through continuing use. In the
event that the sale of the asset is extended beyond one year, the extension of the period
required to complete the sale does not preclude an asset from being classified as held for sale if

there is sufficient evidence that BDO Unibank Group remains committed to sell the asset.
 - 22 -

Assets classified as held for sale are measured at the lower of their carrying amounts immediately
prior to their classification as assets held for sale and their fair value less costs to sell. The BDO
Unibank Group shall recognize an impairment loss for any initial and subsequent write-down of
the asset to fair value less cost to sell. Gain for any subsequent increase in fair value less cost to
sell of an asset is recognized to the extent of the cumulative impairment loss previously
recognized. Assets classified as held for sale are not subject to depreciation or amortization.

If BDO Unibank Group has classified an asset as held for sale, but the criteria for it to be
recognized as held for sale are no longer satisfied, the BDO Unibank Group shall cease to
classify the asset as held for sale and will reclassify it as investment properties for land and
building, or other properties for chattel and other assets. For building under investment
properties or other properties, this would be subject to depreciation.
The profit or loss arising from the sale of assets held for sale is included as part of Income
from assets sold or exchanged under Other Operating Income account in the statement of
income.
2.11 Equity Investments

as Equity investments under Other Resources account in the statement of financial position)
are accounted for under the equity method of accounting and are initially recognized at cost
less allowance for impairment, if any (see Note 2.21). Associates are all entities over which the
BDO Unibank Group has significant influence but which are neither subsidiaries nor interest
in a joint venture.
Investments in subsidiaries and associates are initially recognized at cost and subsequently
accounted for using the equity method (see Note 2.3).
Changes resulting from other comprehensive income of the subsidiary and associate or
items recognized directly in the
comprehensive income or equity of the Parent Bank, as applicable. However, when the Parent
share of losses of subsidiary or associate equals or exceeds its interest in the subsidiary or
associate, including any other unsecured receivables, the Parent Bank would not recognize
further losses, unless it has incurred obligations or made payments on behalf of the subsidiary or
associate. If the subsidiary or associate subsequently reports profits, the investor resumes
recognizing its share of those profits only after its share of the profits exceeds the accumulated
share of losses that has previously not been recognized.
Impairment loss is provided when there is objective evidence that the investment in a subsidiary
and an associate will not be recovered (see Note 2.21).

Distributions received from the subsidiaries and associates are accounted for as a reduction of
the carrying value of the investment.

2.12 Other Resources

Other resources, which include non-current assets held for sale (see Note 2.10), pertain to
other assets that are controlled by BDO Unibank Group as a result of past events. These are
recognized in the financial statements when it is probable that the future economic benefits
will flow to BDO Unibank Group and the asset has a cost or value that can be measured
reliably.
.
 - 23 -

2.13 Intangible Assets

Intangible assets include goodwill, trading rights, branch licenses, customer lists, trademark and
computer software licenses.

Goodwill represents the excess of the cost of acquisition over the fair value of the net assets
acquired at the date of acquisition [see Note 2.3(d)]. Goodwill is classified as intangible asset
with indefinite useful life and, thus, not subject to amortization but to an annual test for
impairment (see Note 2.21). Goodwill is subsequently carried at cost less any accumulated
impairment losses. Goodwill is allocated to cash-generating units for the purpose of
impairment testing. Each of those cash-generating units is represented by each primary
reporting segment.

Trading rights represent the rights given to securities subsidiaries of BDO Unibank Group
engage in stock brokerage to preserve access to the trading facilities and to transact business
on PSE. Trading right is assessed as having an indefinite useful life. It is carried at the amount
allocated from the original cost of the exchange membership seat (after a corresponding
allocation was made to the value of the PSE shares) less allowance for impairment loss, if any.
BDO Unibank Group has no intention to sell its trading right in the future as it intends to
continue to operate its stock brokerage business. The trading right is tested annually for any
impairment in realizable value (see Note 2.21).

Branch licenses, on the other hand, represent the rights given to BDO Unibank Group to
establish certain number of branches as an incentive in acquiring distressed banks or as
provided by the BSP in addition to the current branches of the acquired banks. Branch
licenses are assessed as having an indefinite useful life and are tested annually for any
impairment (see Note 2.21).

Customer lists consist of information about customers such as their name, contact

customer list is classified as intangible asset with indefinite useful life, hence, would be
reviewed for impairment by assessing at each reporting date whether there is any indication
that the trust business brought about by the customer lists may be impaired (see Note 2.21).

Trademark pertains to the license granted to the Parent Bank for the exclusive right to use the
trademark, service mark, name or logo of Diners Club International, Ltd. (Diners) in

The trademark is covered by a trademark license agreement with a term of five years,
renewable every five years, subject to certain conditions set by trademark owner. This
intangible asset is recognized at an amount equal to the excess of purchase price for the
acquisition of Diners credit card portfolio over the acquisition-date fair value of the net assets
acquired. It is amortized on a straight-line basis over a finite useful life of five years based on
the term of the trademark license agreement, which is deemed to have a finite useful life since
renewal is not guaranteed.

Acquired computer software licenses are capitalized on the basis of the costs incurred to
acquire and install the specific software. These costs are amortized on straight-line basis over
the expected useful life of five years. Costs associated with maintaining computer software are
expensed as incurred.

When an intangible asset is disposed of, the gain or loss on disposal is determined as the
difference between the proceeds and the carrying amount of the asset and is recognized in
profit or loss.
 - 24 -

2.14 Insurance Contract Liabilities

(a) Legal Policy Reserves

Life insurance contract liabilities are recognized when the contracts are entered into and
the premiums are recognized. The provision for life insurance contracts is calculated on
the basis of a prospective actuarial valuation method and assumptions subject to the
provisions of the Insurance Code and guidelines set by the IC.

The BDO Unibank Group uses gross premium valuation (GPV) as the basis for valuation
of the reserves for traditional life insurance policies. GPV is calculated as the sum of the
present value of future benefits and expenses, less the present value of future gross
premiums arising from the policy discounted at the appropriate risk-free discount rate
provided by the IC. For this purpose, the expected future cash flows shall be determined
using the best estimate assumptions with due regard to significant recent experience and
appropriate margin for adverse deviation (MfAD) from the expected experience. The
methods and assumptions shall be in accordance with the internationally accepted
actuarial standards and consider the generally accepted actuarial principles concerning
financial reporting framework promulgated by the Actuarial Society of the Philippines,
which now considers other assumptions such as morbidity, lapse and/or persistency,
non-guaranteed benefits and MfAD.

The changes in legal policy reserves for traditional life insurance policies are recognized as
follows:

(i) the increase or decrease in legal policy reserves in the current year due to other
assumptions excluding change in discount rate will be recognized to profit or loss; and,

(ii) remeasurement on life insurance reserves due to changes in discount rates will be
recognized in other comprehensive income (see Note 2.16).

(b) Insurance Contracts with Fixed and Guaranteed Terms

Liabilities are determined as the sum of the present value of future benefits and expenses
less the present value of future gross premiums discounted at rates prescribed by the IC.
Future cash flows are determined using best estimate assumptions with regard to
significant recent experience and appropriate margin for adverse deviation from the
expected experience.

BDO Unibank Group has different assumptions for different products. However, the
reserves are computed to comply with the statutory requirements, wherein discount rates
are based on risk-free discount rates provided by IC and other assumptions such as
mortality, disability, lapse, and expenses taking
experience.

(c) Variable Unit-linked Insurance Contracts

BDO Unibank Group, through BDO Life, issues unit-linked insurance contracts. In
addition to providing insurance coverage, a unit-linked contract links payments to units
of an internal investment fund set up by BDO Unibank Group with the consideration
received from the policyholders. Premiums received from the issuance of unit-linked
insurance contracts are recognized as premiums revenue. As allowed by PFRS 4, BDO
Unibank Group chose not to unbundle the investment portion of its unit-linked
products.
 - 25 -

The reserve for unit-linked liability is increased by additional deposits and changes in
unit prices and is decreased by policy administration fees, mortality and surrender
charges and any withdrawals. At each reporting date, this reserve is computed on the
basis of the number of units allocated to the policyholders multiplied by the unit price of
the underlying investment funds. The assets and liabilities underlying the internal
investment funds have been consolidated with the general accounts of BDO Unibank
Group.

(d) Liability Adequacy Test

Liability adequacy tests are performed annually to ensure the adequacy of the insurance
contract liabilities. In performing these tests, current best estimates of future contractual
cash flows, claims handling and policy administration expenses are used. Any deficiency
is immediately charged against profit or loss initially by establishing a provision for losses
arising from the liability adequacy tests.

Insurance premiums and insurance benefits and claims on insurance contracts are recognized
as follows:

(a) Insurance Premiums

(i) Net insurance premium. Recognized as gross premium on insurance contracts less

(ii) Gross premiums on insurance contracts. Premiums arising from insurance contracts are
initially recognized as income on the effective date of the insurance policies.
Subsequent to initial recognition, gross earned premiums on life insurance
contracts are recognized as revenue at the date when payments are due.

(iii) . Gross reinsurance premiums on traditional

and variable contracts are recognized as an expense when the policy becomes
effective.

(b) Insurance Benefits and Claims

(i) Net insurance benefits and claims.

policy reserves.

(ii) Gross benefits and claims. Gross benefits and claims of the policyholders include the
cost of all claims arising during the year. Death claims and surrenders are recorded
on the basis of notifications received. Maturities and annuity payments are recorded
when due.
(iii) .
to the amount recoverable from reinsurers for recognized claims during the year.
These are accounted for when the corresponding claims are recognized.

(iv) Gross change in legal policy reserves. Gross change in legal policy reserves represents the
change in the valuation of legal policy reserves recognized as part of Insurance
Contract Liabilities account in the statement of financial position.
 - 26 -

(v) e on gross change in legal policy reserves.

reserves. These are accounted for in the same period as the corresponding change
in insurance contract liabilities.
2.15 Offsetting Financial Instruments
Financial assets and financial liabilities are offset and the resulting net amount, considered as
a single financial asset or financial liability, is reported in the statement of financial position
when there is a legally enforceable right to offset the recognized amounts and there is an
intention to settle on a net basis or realize the asset and settle the liability simultaneously.
The right of set-off must be available at the end of the reporting period, that is, it is not
contingent on future event. It must also be enforceable in the normal course of business,
in the event of default, and in the event of insolvency or bankruptcy; and must be legally
enforceable for both entity and all counterparties to the financial instruments.
2.16 Equity
Equity consists of the following:

a. Capital stock represents the nominal value of shares that have been issued.

b. Additional paid-in capital includes any premiums received on the issuance of capital stock.
Any transaction costs associated with the issuance of shares are deducted from additional
paid-in capital, net of any related income tax benefits.

c. Surplus reserves consist of (i) reserve for trust business - represents the accumulated amount
set aside by BDO Unibank Group under existing regulations requiring the BDO Unibank
Group to carry to surplus 10% of its net profits accruing from its trust business until the
surplus shall amount to 20% of the regulatory capital and, to the appropriation for general
loan loss provision as prescribed by BSP; (ii) reserve for insurance fund and additional
working capital for underwriting and equity trading securities and reserve fund requirement
for subsidiaries engaged in the security brokerage business (see Note 22); and (iii) share
options outstanding (SOO) -
amortizations over the vesting period as the share-based employee remuneration are
recognized and reported in the statement of income. SOO will be deducted for any exercise
or forfeiture of share options already vested.

d. Other reserves pertain to amount recognized from increase in percentage of ownership to any
of the subsidiaries of BDO Unibank Group.

e. Surplus free includes all current and prior period results as disclosed in the statement of
income and which are available and not restricted for use by BDO Unibank Group, reduced
by the amounts of dividends declared, if any.

f. NUGL on FVOCI compose of cumulative mark-to-market valuation of outstanding

securities and accumulated impairment on debt securities classified as FVOCI.

g. Accumulated actuarial gains (losses) from the remeasurements of post-employment defined

benefit plan.

h. Revaluation increment pertains to gains from the revaluation of land under premises,
furniture, fixtures and equipment, which is now treated as part of the deemed cost of the
assets (see Note 2.7).
 - 27 -

i. Remeasurement on life insurance reserves arises from the increase or decrease of the
reserves brought about by changes in discount rates (see Note 2.14).

j. Accumulated translation adjustment pertains to foreign exchange differences arising on

translation of the resources and liabilities of foreign branch and subsidiaries that are taken
up in other comprehensive income (see Note 2.22).

k. Accumulated share in other comprehensive income (loss) of subsidiaries and associates

pertains to changes resulting from the BDO
other comprehensive income (loss) of subsidiaries and associates or items recognized

l. Non-controlling interests represent the portion of the net resources and profit or loss not
attributable to BDO Unibank Group, which are presented separately in BDO Unibank

equity.

2.17 Related Party Transactions and Relationships

Related party transactions are transfers of resources, services or obligations between BDO
Unibank Group and its related parties, regardless of whether a price is charged.
Parties are considered to be related if one party has the ability to control the other party or
exercise significant influence over the other party in making financial and operating decisions.
These include: (a) individuals owning, directly or indirectly through one or more intermediaries,
control or are controlled by, or under common control with BDO Unibank Group;
(b) associates; (c) individuals owning, directly or indirectly, an interest in the voting power
of BDO Unibank Group that gives them significant influence over BDO Unibank Group and
funded
retirement plan (see Note 26.2).
In considering each possible related party relationship, attention is directed to the substance of
the relationship and not merely on the legal form. The BDO Unibank Group established
policies and procedures on related party transactions in accordance with the regulations of the
BSP and the SEC. All material related party transactions, which exceed the established
materiality thresholds, must undergo prior review from the board-level Related Party
Transactions Committee before endorsing the same to the BOD for approval.

resources, either single or aggregated within a 12-month period, require review of an external
independent party and approval of two-thirds vote of the BOD, with at least a majority of the
independent directors voting affirmatively. In case that a majority of the independent

of the stockholders representing at least two-thirds of the outstanding capital stock. For
aggregate related party transactions within 12-month period that breaches the materiality

consolidated financial statements, the same approval of the BOD would be required for the
transaction that meets and exceeds the materiality threshold covering the same related party.
 - 28 -

2.18 Other Income and Expense Recognition

Revenue is recognized only when (or as) the BDO Unibank Group satisfies a performance
obligation by transferring control of the promised services to the customer. A contract with a
customer that results in a recognized financial instrument in the BDO Unibank
financial statements may be partially within the scope of PFRS 9 and partially within the scope
of PFRS 15. In such case, the BDO Unibank Group first applies PFRS 9 to separate and
measure the part of the contract that is in-scope of PFRS 9, and then applies PFRS 15 to the
residual part of the contract. Expenses and costs, if any, are recognized in profit or loss upon
utilization of the assets or services or at the date these are incurred. All finance costs are
reported in profit or loss on accrual basis, except to the extent that they are capitalized.

Borrowing costs that are directly attributable to the acquisition, construction or production of a
qualifying asset (i.e., an asset that takes a substantial period of time to get ready for its intended
use or sale) are capitalized as part of cost of such asset. The capitalization of borrowing costs
commences when expenditures for the asset and borrowing costs are being incurred and
activities that are necessary to prepare the asset for its intended use or sale are in progress.
Capitalization ceases when substantially all such activities are complete.

Investment income earned on the temporary investment of specific borrowings pending

their expenditure on qualifying assets is deducted from the borrowing costs eligible for
capitalization.

The BDO Unibank Group also earns service fees and commissions in various banking
services, and gains on sale of properties, which are supported by contracts approved by the
parties involved. These revenues are accounted for by the BDO Unibank Group in
accordance with PFRS 15.
For revenues arising from these various banking services which are to be accounted for under
PFRS 15, the following provides information about the nature and timing of satisfaction of
performance obligations in contracts with customers, including significant payment terms, and
the related revenue recognition policies:
(a) Service charges, fees and commissions Service charges, fees and commissions are generally
recognized over time as the service is being provided and is based on the various criteria
of recognition for each specific income source. These include the following accounts:

(i) Commission and fees arising from loans, deposits, and other banking transactions are
taken up as income based on agreed terms and conditions.

(ii) Loan syndication fees are recognized as revenue when the syndication has been
completed and that BDO Unibank Group retained no part of the loan package for
itself or retained a part at the same effective interest rate for the other participants.

(iii) Arranger fees arising from negotiating or participating in the negotiation of a

transaction for a third party such as arrangement of the acquisition of shares or other
securities or the purchase or sale of businesses are recognized at the completion of
the underlying assumptions.

(iv) Portfolio and other management advisory and service fees are recognized based on the
applicable service contracts, usually on a time-proportionate basis.
 - 29 -

(b) Asset Management Services The BDO Unibank Group recognizes trust fees related to
asset management services, which include trust and fiduciary services. Trust fees related
to investment funds are recognized ratably over the period the service is provided. The
same principle is applied for wealth management, financial planning and custody services
that are continuously provided over an extended period of time.

For other income outside the scope of PFRS 15, the following provides information about the
nature and the related revenue recognition policies:

(a) Trading and Securities Gains (Losses) These are recognized when the ownership of the
securities is transferred to the buyer and is computed as the difference between the
selling price and the carrying amount of the securities disposed of. These also include
trading gains and losses as a result of the mark-to-market valuation of investment
securities classified as FVTPL.

(b) Gain or loss from assets sold or exchange Income or loss from assets sold or exchanged is
recognized when the title to the properties is transferred to the buyer or when the
collectability of the entire sales price is reasonably assured. This is included in statement
of income as part of Other Operating Income account.

(c) Recovery on charged-off assets Income arising from collections on accounts or recoveries
from impairment of items previously written off are recognized in the year of recovery.
This is included in statement of income as part of Other Operating Income account.

The BDO Unibank Group recognizes an expense and liability relative to the fair value of
the reward points earned by clients and customers [see Note 3.2(j)] since such points are
redeemable primarily from the goods or services provided by a third party participating in the
program, for example, SM Group (a related party) and rewards partners of the Parent Bank.
2.19 Provisions and Contingencies
Provisions are recognized when present obligations will probably lead to an outflow of economic
resources and these can be estimated reliably even if the timing or amount of the outflow may
still be uncertain. A present obligation arises from the presence of a legal or constructive
commitment that has resulted from past events (e.g., legal disputes or onerous contracts).

Provisions are measured at the estimated expenditure required to settle the present obligation,
based on the most reliable evidence available at the end of reporting period, including the risks
and uncertainties associated with the present obligation. Where there are a number of similar
obligations, the likelihood that an outflow will be required in settlement is determined by
considering the class of obligations as a whole. When time value of money is material,
long-term provisions are discounted to their present values using a pretax rate that reflects
market assessments and the risks specific to the obligation. The increase in the provision due to
passage of time is recognized as interest expense. Provisions are reviewed at the end of each
reporting period and adjusted to reflect the current best estimate.
 - 30 -

In those cases where the possible outflow of economic resource as a result of present obligations
is considered improbable or remote, or the amount to be provided for cannot be measured
reliably, no liability is recognized in the financial statements. Similarly, probable inflows of
economic benefits that do not yet meet the recognition criteria of an asset are considered
contingent assets, hence, are not recognized in the financial statements. On the other hand, any
reimbursement that BDO Unibank Group can be virtually certain to collect from a third party
with respect to the obligation is recognized as a separate asset not exceeding the amount of the
related provision.
The BDO Unibank Group offers monetized rewards to active account holders in relation to its
credit card and marketing rewards program. Provisions for rewards are recognized at a certain

amounts.

2.20 Leases
BDO Unibank Group accounts for its leases as follows:
(a) BDO Unibank Group as Lessor
Leases, wherein BDO Unibank Group substantially transfers to the lessee all risks and
benefits incidental to ownership of the leased item, are classified as finance leases and
tment
in the lease. Finance income is recognized based on the pattern reflecting a constant

of the finance lease.

Leases, which do not transfer to the lessee substantially all the risks and benefits of
ownership of the asset are classified as operating leases. Operating lease collections are
recognized as income in profit or loss as part of Rental under Other Operating Income
account in the statement of income on a straight-line basis over the lease term.

(b) BDO Unibank Group as Lessee

For any new contracts entered into, BDO Unibank Group considers whether a contract is,
or contains, a lease. A lease is defined as a contract, or part of a contract, that conveys the
right to use an asset (the underlying asset) for a period of time in exchange for
consideration. To apply this definition, BDO Unibank Group assesses whether the
contract meets three key evaluations which are:

the contract contains an identified asset, which is either explicitly identified in the
contract or implicitly specified by being identified at the time the asset is made
available to BDO Unibank Group;

BDO Unibank Group has the right to obtain substantially all of the economic benefits
from use of the identified asset throughout the period of use, considering its rights
within the defined scope of the contract; and,

BDO Unibank Group has the right to direct the use of the identified asset throughout
the period of use. BDO Unibank Group assesses whether it has the right to direct
 - 31 -

At lease commencement date, the BDO Unibank Group recognizes a right-of-use asset
and a lease liability in the statement of financial position. The right-of-use asset is
measured at cost, which is made up of the initial measurement of the lease liability,
any initial direct costs incurred by BDO Unibank Group, an estimate of any costs to
dismantle and remove the asset at the end of the lease, and any lease payments made in
advance of the lease commencement date (net of any incentives received). Subsequently,
BDO Unibank Group depreciates the right-of-use asset on a straight-line basis from the
lease commencement date to the earlier of the end of the useful life of the right-of-use
asset or the end of the lease term. The BDO Unibank Group also assesses the
right-of-use asset for impairment when such indicators exist (see Note 2.21).
On the other hand, BDO Unibank Group measures the lease liability at the present value
of the lease payments unpaid at the commencement date, discounted using the interest
rate implicit in the lease if that rate is readily available or BDO Unibank Group
incremental borrowing rate. Lease payments include fixed payments (including
in-substance fixed) less lease incentives receivable, if any, variable lease payments based
on an index or rate, amounts expected to be payable under a residual value guarantee,
and payments arising from options (either renewal or termination) reasonably certain
to be exercised. Subsequent to initial measurement, the liability will be reduced for
payments made and increased for interest. It is remeasured to reflect any reassessment
or modification, or if there are changes in in-substance fixed payments. When the lease
liability is remeasured, the corresponding adjustment is reflected in the right-of-use asset,
or profit and loss if the right-of-use asset is already reduced to zero.

BDO Unibank Group has elected to account for short-term leases and leases of
low-value assets using the practical expedients. Instead of recognizing a right-of-use
asset and lease liability, the payments in relation to these are recognized as an expense as
incurred.

On the statement of financial position, right-of-use assets and lease liabilities have been
presented as part of Premises, Furniture, Fixtures and Equipment and Other Liabilities,
respectively.

2.21 Impairment of Non-financial Assets

and customer lists recorded as part of Other Resources, Premises, Furniture, Fixtures and
Equipment, Investment Properties and other non-financial assets are subject to impairment
testing. Intangible assets with an indefinite useful life, such as goodwill, branch licenses,
customer lists and trading rights are tested for impairment at least annually. All other
individual assets or cash-generating units are tested for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be recoverable.

For purposes of assessing impairment, assets are grouped at the lowest levels for which there
are separately identifiable cash flows (cash-generating units). As a result, assets are tested for
impairment either individually or at the cash-generating unit level.

-
carrying amount exceeds its recoverable amounts which is the higher of its fair value less costs
to sell and its value in use. In determining value in use, management estimates the expected
future cash flows from each cash-generating unit and determines the suitable interest rate in
order to calculate the present value of those cash flows. Discount factors are determined
individually for each cash-
risk profiles, such as market and asset-specific risk factors.
 - 32 -

Except for goodwill, all assets are subsequently reassessed for indications that an impairment

2.22 Foreign Currency Transactions and Translations

(a) Foreign Currency Transactions

The financial statements of the Foreign Currency Deposit Unit (FCDU) of BDO
Unibank Group are translated at the prevailing current exchange rates (for statement
of financial position accounts) and average exchange rate during the period
(for statement of income accounts) for consolidation purposes.

Foreign exchange gains and losses resulting from the settlement of foreign currency
denominated transactions and from the translation at year-end exchange rates of monetary
assets and liabilities denominated in foreign currencies are recognized in profit or loss.

Changes in the fair value of monetary financial assets denominated in foreign currency
classified as FVOCI securities are analyzed between translation differences resulting from
changes in the amortized cost of the security and other changes in the carrying amount of
the security. Translation differences related to changes in amortized cost are recognized
in profit or loss, and other changes in the carrying amount are recognized in other
comprehensive income.
(b) Foreign Currency Translation

The accounting records of BDO Unibank Group are maintained in Philippine pesos
except for foreign branches and subsidiaries, which are maintained in U.S. dollars (USD),
Canadian Dollar (CAD), European Union Euro (Euro), Great Britain Pound (GBP),
Japanese Yen (JPY), Hong Kong Dollars (HKD) or Singapore Dollar (SGD).

The operating results and financial position of foreign branches and subsidiaries which are
measured using the USD, CAD, Euro, GBP, JPY, HKD or SGD, respectively, are

(i) Resources and liabilities for each statement of financial position presented are
translated at the closing rate at the end of the reporting period;
(ii) Income and expenses for each statement of income are translated at the monthly
average exchange rates (unless this average is not a reasonable approximation of the
cumulative effect of the rates prevailing on the transaction dates, in which case
income and expenses are translated at the dates of the transactions); and,

(iii) All resulting exchange differences are recognized as a separate component of other
comprehensive income.
On consolidation, exchange differences arising from the translation due from foreign branch
and net investment in foreign subsidiaries are recognized in other comprehensive income as
part of Accumulated Translation Adjustment (see Note 2.16). When a foreign operation is
sold, the cumulative amount of exchange differences is recognized in profit or loss.

The translation of the financial statements into Philippine peso should not be construed
as a representation that the USD, CAD, Euro, GBP, JPY, HKD or SGD amounts could
be converted into Philippine peso amounts at the translation rates or at any other rates of
exchange.
 - 33 -

2.23 Compensation and Benefits Expense

BDO Unibank Group provides post-employment benefits to employees through a defined
benefit plan and defined contribution plan, and other employee benefits, which are recognized
as follows:

(a) Post-employment Defined Benefit

A defined benefit plan is a post-employment plan that defines an amount of

post-employment benefit that an employee will receive on retirement, usually dependent on
one or more factors such as age, years of service and salary. The legal obligation for any
benefits from this kind of post-employment plan remains with BDO Unibank Group, even
if plan assets for funding the defined benefit plan have been acquired. Plan assets may
include assets specifically designated to a long-term benefit fund. BDO Uniban
defined benefit post-employment plan covers all regular full-time employees. The
post-employment plan is tax-qualified, noncontributory and administered by a trustee.

The liability recognized in the statement of financial position for defined benefit
post-employment plans is the present value of the defined benefit obligation (DBO) less
the fair value of plan assets at the end of reporting period, together with adjustments for
asset ceiling. The DBO is calculated annually by independent actuaries using the
projected unit credit method. The present value of the DBO is determined by
discounting the estimated future cash outflows using a discount rate derived from the
interpolated yields of government bonds as calculated by Bloomberg which used
Bloomberg Valuation Service (BVAL) Evaluated Pricing Service to calculate the
PHP BVAL Reference Rates which are published by Philippine Dealing & Exchange
Corp. (PDEx). These yields are denominated in the currency in which the benefits will
be paid and that have terms to maturity approximating to the terms of the related
post-employment liability.

Remeasurements, comprising of actuarial gains and losses arising from experience

adjustments and changes in actuarial assumptions and the return on plan assets
(excluding amount included in interest) are reflected immediately in the statement of
financial position with a charge or credit recognized in other comprehensive income in
the period in which they arise. Net interest is calculated by applying the discount rate at
the beginning of the period, taking account of any changes in the net defined benefit
liability or asset during the period as a result of contributions and benefit payments.
If there is a plan amendment, curtailment or settlement during the period, the BDO
Unibank Group remeasures its net defined benefit liability or asset using updated
actuarial assumptions to determine the current service cost and net interest for the
remaining of the annual reporting period after the change to the plan. Net interest is
reported as part of Interest expense on bills payable and other borrowings under Interest
Expense account in the statement of income.

Past-service costs are recognized immediately in profit or loss in the period of plan
amendment and curtailment.
 - 34 -

(b) Post-employment Defined Contribution Plan

A defined contribution plan is a post-employment plan under which BDO Unibank
Group pays contributions into an independent entity, such as the
Social Security System. BDO Unibank Group has no legal or constructive obligations to
pay further contributions after payment of the contribution. The
contributions recognized in respect of defined contribution plans are expensed as they
fall due. Liabilities and assets may be recognized if underpayment or prepayment has
occurred.
(c) Short-term Benefits
Short-term employee benefits include wages, salaries, bonuses, and non-monetary
benefits provided to current employees, which are expected to be settled before
12 months after the end of the reporting period during which an employee services are
rendered, but does not include termination benefits. The undiscounted amount of the
benefits expected to be paid in respect of services rendered by employees in an
accounting period is recognized in profit or loss during that period and any unsettled
amount at the end of the reporting period is included as part of Accrued expenses under
Other Liabilities account in the statement of financial position.

(d) Termination Benefits

Termination benefits are payable when employment is terminated by BDO Unibank
Group for authorized cause before the normal retirement date, or whenever an employee
accepts voluntary redundancy in exchange for these benefits. BDO Unibank Group
recognizes termination benefits at the earlier of when it can no longer withdraw the offer
of such benefits and when it recognized costs for a restructuring that is within the scope
of PAS 37 and involves the payment of termination benefits. In the case of an offer
made to encourage voluntary redundancy, the termination benefits are measured based
on the number of employees expected to accept the offer. Benefits falling due more
than 12 months after the end of reporting period are discounted to present value.

(e) Bonus Plans

BDO Unibank Group recognizes a liability and an expense for bonuses based on the
BDO Unibank
Group where it is contractually obliged to pay the benefits or where there is a past
practice that has created a constructive obligation.

(f) Employee Stock Option Plan

BDO Unibank Group has an employee stock option plan (ESOP) for its senior officers
(from vice-
stock plan are cash
settled.
 - 35 -

All services received in exchange for the grant of the stock options are measured at their
fair values using the Black-Scholes option model. Where employees are rewarded using

to the fair value of the equity instruments granted. The amount of stock options
allocated to the qualified officers is based on the performance of the senior officers as
determined by management and it requires a vesting period of five years. These are
adjusted accordingly for any resignation or disqualification. The vested options may be
exercised within three years from vesting date. The cost of ESOP is amortized over five
years (vesting period) starting from the approval of the BOD. The annual amortization
of stock options is included in Compensation and benefits under Other Operating
Expenses account in the statement of income with corresponding recognition of SOO
(included as part of Surplus Reserves under the Equity section of the statement of
financial position).

Upon exercise of share options, the proceeds received, net of any directly attributable
transaction costs, are allocated to capital stock to the nominal (or par) value of the shares
issued with any excess being recorded as additional paid-in-capital. In case of forfeiture,
the previously recognized share options outstanding will be transferred to additional
paid-in-capital.

(g) Unavailed Leaves

Unavailed leaves (excluding those qualified under the retirement benefit plan), included
in Other Liabilities account, are recognized as expense at the amount BDO Unibank
Group expects to pay at the end of reporting period. Unavailed leaves of employees
qualified under the retirement plan are valued and funded as part of the present value of
DBO in Note 2.23(a).

2.24 Income Taxes

Tax expense recognized in statement of income comprises the sum of current tax and deferred
tax not recognized in other comprehensive income or directly in equity, if any.

Current tax assets or liabilities comprise those claims from, or obligations to, fiscal authorities
relating to the current or prior reporting period, that are uncollected or unpaid at the end of
the reporting period. They are calculated according to the tax rates and tax laws applicable to
the fiscal periods to which they relate, based on the taxable profit for the period. All changes
to current tax assets or liabilities are recognized as a component of tax expense in profit or
loss.

Deferred tax is accounted for using the liability method on temporary differences at the end of
the reporting period between the tax base of assets and liabilities and their carrying amounts for
financial reporting purposes. Under the liability method, with certain exceptions, deferred tax
liabilities are recognized for all taxable temporary differences and deferred tax assets are
recognized for all deductible temporary differences and the carryforward of unused tax losses
and unused tax credits to the extent that it is probable that taxable profit will be available against
which the deferred tax asset can be utilized. Unrecognized deferred tax assets are reassessed at
the end of each reporting period and are recognized to the extent that it has become probable
that future taxable profit will be available to allow such deferred tax assets to be recovered.
 - 36 -

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the
period when the asset is realized or the liability is settled provided such tax rates and tax laws
have been enacted or substantively enacted at the end of each reporting period.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and
reduced to the extent that it is probable that sufficient taxable profit will be available to allow all
or part of the deferred tax asset to be utilized.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would
follow from the manner in which BDO Unibank Group expects, at the end of the reporting
period, to recover or settle the carrying amount of its assets and liabilities.
Most changes in deferred tax assets or liabilities are recognized as a component of tax expense
in profit or loss, except to the extent that it relates to items recognized in other comprehensive
income or directly in equity. In this case, the tax is also recognized in other comprehensive
income or directly in equity, respectively.
Deferred tax assets and deferred tax liabilities are offset if BDO Unibank Group has a legally
enforceable right to set off current tax assets against current tax liabilities and the deferred taxes
relate to the same entity and the same taxation authority (see Note 31.1).
2.25 Earnings Per Share
Basic earnings per share is determined by dividing consolidated net profit by the weighted
average number of common shares issued and outstanding during the period, after retroactive
adjustment for any stock dividend declared in the current period.

The diluted earnings per share is also computed by dividing consolidated net profit by the
weighted average number of common shares issued and outstanding during the period.
However, consolidated net profit attributable to common shares and the weighted average
number of common shares outstanding are adjusted to reflect the effects of potentially dilutive
convertible preferred shares and stock option plan granted by BDO Unibank Group to the
qualified officers (to the extent that shares under the stock option plan shall be issued from the
unissued authorized capital stock and not purchased from the market or stock exchange).
Convertible preferred shares are deemed to have been converted to common shares at the
issuance of preferred shares. The stock option plan is deemed to have been converted into
common stock in the year the stock option is granted.

2.26 Trust Activities

BDO Unibank Group commonly acts as trustee and in other fiduciary capacities that result in
the holding or placing of assets on behalf of individuals, trusts, retirement benefit plans and
other institutions. Resources and income arising thereon are excluded from these financial
statements, as these are neither resources nor income of BDO Unibank Group.

2.27 Events After the End of the Reporting Period

Any post-year-end event that provides additiona
financial position at the end of reporting period (adjusting event) is reflected in the financial
statements. Post-year-end events that are not adjusting events, if any, are disclosed when material
to the financial statements.
 - 37 -

3. SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES

, prepared in accordance with
PFRS, require management to make judgments and estimates that affect the amounts reported in
the financial statements and related notes. Judgments and estimates are continually evaluated and
are based on historical experience and other factors, including expectations of future events that
are believed to be reasonable under the circumstances. Actual results may ultimately differ from
these estimates and the differences could be significant.

3.1 Critical Management Judgments in Applying Accounting Policies

In th
following judgments, apart from those involving estimation, which have the most significant effect
on the amounts recognized in the financial statements.
(a) Application of ECL to Financial Assets at Amortized Cost and Financial Assets at FVOCI

BDO Unibank Group uses the general approach to calculate ECL for all debt instruments
carried at amortized cost and FVOCI, together with loan commitments and financial
guarantee contracts. The allowance for impairment is based on the ECLs associated with
the probability of default of a financial instrument in the next 12 months, unless there has
been a significant increase in credit risk since origination of the financial instrument, in
such case, a lifetime ECL for the instrument is recognized. This is where significant
judgement is required.

BDO Unibank Group has established a policy to perform an assessment, at the end of each
reporting period, whether a
initial recognition, by considering the change in the risk of default occurring over the
remaining life of the financial instrument (see Note 4.3.5).

(b) Evaluation of Business Model Applied in Managing Financial Instruments

BDO Unibank Group manages its financial assets based on business models that maintain
adequate level of financial assets to match its expected cash outflows, largely its core deposit
rawals and continuing loan disbursements to
borrowers, while maintaining a strategic portfolio of financial assets for trading activities
consistent with its risk appetite.

BDO Unibank Group developed business models which reflect how it manages its portfolio

at entity level or as a whole but shall be applied at the level of a portfolio of financial
instruments (i.e., group of financial instruments that are managed together by BDO Unibank
Group) and not on an instrument-by-instrument basis (i.e., not based on intention or
specific characteristics of individual financial instrument).

In determining the classification of a financial instrument, BDO Unibank Group evaluates

in which business model a financial instrument or a portfolio of financial instruments belong
to taking into consideration the objectives of each business model established by BDO
Unibank Group (e.g., held-for-trading, generating accrual income, direct matching to a
and lending
strategies.
 - 38 -

(c) Testing the Cash Flow Characteristics of Financial Assets and Continuing Evaluation of
the Business Model
In determining the classification of financial assets, BDO Unibank Group assesses
whether the contractual terms of the financial assets give rise on specified dates to cash
flows that are SPPI on the principal outstanding, with interest representing time value of
money and credit risk associated with the principal amount outstanding. The assessment
as to whether the cash flows meet the test is made in the currency in which the financial
asset is denominated. Any other contractual term that changes the timing or amount of
cash flows (unless it is a variable interest rate that represents time value of money and
credit risk) does not meet the amortized cost criteria. In cases where the relationship
between the passage of time and the interest rate of the financial instrument may be
imperfect, known as modified time value of money, BDO Unibank Group assesses the
modified time value of money feature to determine whether the financial instrument still
meets the SPPI criterion. The objective of the assessment is to determine how different
the undiscounted contractual cash flows could be from the undiscounted cash flows that
would arise if the time value of money element was not modified (the benchmark cash
flows). If the resulting difference is significant, the SPPI criterion is not met. In view
of this, BDO Unibank Group considers the effect of the modified time value of money
element in each reporting period and cumulatively over the life of the financial
instrument.

If more than an infrequent sale is made out of a portfolio of financial assets carried at
amortized cost, an entity should assess whether and how such sales are consistent with
the objective of collecting contractual cash flows.

In making this judgment, BDO Unibank Group considers certain circumstances

documented in its business model manual to assess that an increase in the frequency or
value of sales of financial instruments in a particular period is not necessarily inconsistent
with a held-to-collect business model if BDO Unibank Group can explain the reasons for

objective for the business model.

In 2021 and 2020, the BDO Unibank Group and the Parent Bank disposed of certain
debt securities from its amortized cost portfolio in accordance with its investment policy.
Such disposals have qualified under the permitted sale events set forth in BDO Unibank
ual and the
requirements of PFRS 9 (see Note 10.3).

(d) Distinction Between Investment Properties and Owner-occupied Properties

BDO Unibank Group determines whether a property qualifies as investment property.

In making its judgment, BDO Unibank Group considers whether the property generates
cash flows largely independent of the other assets held by BDO Unibank Group.
Owner-occupied properties generate cash flows that are attributable not only to the
property but also to the other resources used in the supply process.
 - 39 -

Some properties comprise a portion that is held to earn rental or for capital appreciation
and another portion that is held for use in the supply of services or for administrative
purposes. If the portions can be sold separately (or leased out separately under finance
lease), BDO Unibank Group accounts for those portions separately. If the portion
cannot be sold separately, the property is accounted for as investment property only
if insignificant portion is held for use in the supply of services or for administrative
purposes. Judgment is applied in determining whether ancillary services are so significant
that a property does not qualify as investment property. BDO Unibank Group considers
each property separately in making its judgment.

(e) Distinction Between Operating and Finance Leases for Contracts where BDO Unibank Group is the
Lessor

BDO Unibank Group has entered into various lease agreements as a lessor. Critical
judgment was exercised by management to distinguish each lease agreement as either an
operating or finance lease by looking at the transfer or retention of significant risks and
rewards of ownership of the properties covered by the agreements. Failure to make the
right judgment will result in either overstatement or understatement of resources.

(f) Determination of Lease Term

In determining the lease term, management considers all relevant factors and
circumstances that create an economic incentive to exercise a renewal option or not
exercise a termination option. Renewal options and/or periods after termination options
are only included in the lease term if the lease is reasonably certain to be extended or not
terminated.

For leases of land and office spaces, the factors that are normally the most relevant are
(i) if there are significant penalties should BDO Unibank Group pre-terminate the
contract, and (ii) if any leasehold improvements are expected to have a significant
remaining value, BDO Unibank Group is reasonably certain to extend and not to
terminate the lease contract. Otherwise, BDO Unibank Group considers other factors
including historical lease durations and the costs and business disruption required to
replace the leased asset.

BDO Unibank Group did not include the renewal period as part of the lease term of the
land and office spaces because the terms of most of the contracts are renewable upon the
mutual agreement of the parties.

The lease term is reassessed if an option is actually exercised or not or BDO Unibank
Group becomes obliged to exercise or not. The assessment of reasonable certainty is
only revised if a significant event or a significant change in circumstances occurs, which
affects this assessment, and that is within the control of the BDO Unibank Group.
 - 40 -

(g) Classification and Fair Value Determination of Acquired Properties

BDO Unibank Group classifies its acquired properties as Premises, Furniture, Fixtures
and Equipment if used in operations, chattels as Non-current assets held for sale
(presented under Other Resources account) if expected to be recovered through sale
rather than use, real properties as Investment Properties if intended to be held for capital
appreciation or lease, as financial assets if qualified as such in accordance with PFRS 9 or
as Other properties (presented under Other Resources account) if held for sale but the
depreciable properties (other than building) are not yet disposed within certain years. At
initial recognition, BDO Unibank Group determines the fair value of the acquired
properties through internally or externally generated appraisal. The appraised value is
determined based on the current economic and market conditions as well as the physical
condition of the properties. The BDO Unibank rmining
the fair value of acquired properties are further discussed in Note 7.5.

(h) Assessment of Significant Influence on Entities in which BDO Unibank Group Holds Less than 20%
Ownership

The management considers that the BDO Unibank Group and the Parent Bank have
significant influence on NLEX Corporation even though it holds less than 20% of the
ordinary shares in the latter. In making this judgment, management considered the BDO
Unibank
to nominate a director in NLEX Corporation as granted in the Amended and Restated

ARSA provides that investors shall be entitled to nominate one director for as long as it
owns at least 10% of the equity of NLEX Corporation, or shall be entitled to nominate
two directors for as long as it owns at least 16.5% of the equity of NLEX Corporation.

Failure to make the right judgment will result in either overstatement or understatement of
resources, liabilities, income and expenses.

(i) Determination of Timing of Satisfaction of Performance Obligations

BDO Unibank Group determines that its revenues from services for account
management, loan administration and fees from annual credit card membership shall be
recognized over time. In making its judgment, BDO Unibank Group considers the timing
of receipt and consumption of benefits provided by BDO Unibank Group to the
customers. As the work is performed, BDO Unibank Group becomes entitled to
payments. This demonstrates that the customers simultaneously receive and consume
the benefits of the BDO Unibank Group orporate banking
services as it performs.

In determining the best method of measuring the progress of the BDO Unibank
Group
method, which uses direct measurements of the value to the customer of the services
transferred to date relative to the remaining services promised as basis in recognizing
revenues. Such measurements include results of performance completed to date and
time elapsed.
 - 41 -

(j) Determination of Branch Licenses Having Indefinite Useful Lives

The BDO Unibank Group

considering there is no foreseeable limit to the period over which such assets are
expected to generate net cash inflows for the BDO Unibank Group. The assessment of
having indefinite useful lives is reviewed periodically and is updated whether events and
circumstances such as the period of control over these assets and legal or similar limits
on the use of these assets continue to support such assessment.

(k) Recognition of Provisions and Contingencies

Judgment is exercised by management to distinguish between provisions and

contingencies. Policies on recognition of provisions and contingencies are discussed in
Note 2.19 and relevant disclosures are presented in Note 34.

3.2 Key Sources of Estimation Uncertainty

The following are the key assumptions concerning the future, and other key sources of estimation
uncertainty at the end of the reporting period, that have a significant risk of causing a material
adjustment to the carrying amounts of resources and liabilities within the next reporting period.

(a) Estimation of Allowance for ECL

The measurement of the allowance for ECL on financial assets at amortized cost and debt
instruments measured at FVOCI is an area that requires the use of significant assumptions
about the future economic conditions and credit behavior (e.g., likelihood of customers
defaulting and the resulting losses). Explanation of the inputs, assumptions and
estimation used in measuring ECL is further detailed in Note 4.3.

The carrying value of financial assets at FVOCI, Investment securities at amortized cost and
Loans and Other Receivables, and the analysis of the allowance for impairment on such
financial assets, are shown in Notes 10.2, 10.3, 11, and 16 respectively.

(b) Fair Value Measurement for Financial Instruments

Management applies valuation techniques to determine the fair value of financial instruments
where active market quotes are not available. Valuation techniques are used to determine
fair values which are validated and periodically reviewed. To the extent practicable, models
use observable data, however, areas such as counterparty credit risk, volatilities and
correlations require management to make estimates. Changes in assumptions could affect
the reported fair value of financial instruments. The BDO Unibank Group uses judgment to
select a variety of methods and make assumptions that are mainly based on market
conditions existing at the end of each reporting period.

L and financial
assets at FVOCI and the amounts of fair value changes recognized during the years on
those assets are disclosed in Notes 10.1 and 10.2, respectively.
 - 42 -

(c) Determination of Fair Value of Derivatives

The fair value of derivative financial instruments that are not quoted in an active market
is determined through valuation techniques normally using the discounted cash flow
model.

Valuation techniques are used to determine fair values, which are validated and
periodically reviewed. To the extent practicable, models use observable data, however,
areas such as credit risk (both own and counterparty), volatilities and correlations require
management to make estimates. Changes in assumptions and correlations could affect
reported fair value of financial instruments. The value produced by a model or other
valuation technique, in some instances, is adjusted to allow for a number of factors as
appropriate, because valuation techniques cannot appropriately reflect all factors market
participants take into account when entering into a transaction. Valuation adjustments
are recorded to allow for model risks, bid-ask spreads, liquidity risks as well as other
factors. Management believes that these valuation adjustments are necessary and
appropriate to fairly state financial instruments carried at fair value in the statement of
financial position.

BDO Unibank Group and the Parent Bank use judgment to select a variety of methods and
make assumptions that are mainly based on conditions existing at the end of each reporting
period.

(d) Estimation of Useful Lives of Premises, Furniture, Fixtures and Equipment, Investment Properties and
Other Resources
BDO Unibank Group estimates the useful lives of premises, furniture, fixtures and
equipment, investment properties and other properties, including trademark and computer
software license, based on the period over which the assets are expected to be available for
use. The estimated useful lives of these assets are reviewed periodically and are updated if
expectations differ from previous estimates due to physical wear and tear, technical or
commercial obsolescence and legal or other limits on the use of the assets.

goodwill and branch licenses were regarded as having indefinite useful

lives considering there is no foreseeable limit to the period over which such assets are
expected to generate net cash inflows for the BDO Unibank Group. The assessment of
having indefinite useful lives is reviewed periodically and is updated whether events and
circumstances such as the period of control over these assets and legal or similar limits on the
use of these assets continue to support such assessment.

Actual results, however, may vary due to changes in estimates brought about by changes in
factors mentioned above.
The carrying amounts of premises, furniture, fixtures and equipment are analyzed in
Note 12 while investment properties and other resources, including trademark, goodwill
and branch licenses, are analyzed in Notes 14 and 15, respectively.
 - 43 -

(e) Determination of Appropriate Discount Rate in Measuring Lease Liabilities

BDO Unibank Group measures its lease liabilities at present value of the lease payments
that are not paid at the commencement date of the lease contract. The lease payments were
discounted using a reasonable rate deemed by management equal to the BDO Unibank

management considers the term of the leases, the underlying asset and the economic
environment. Actual results, however, may vary due to changes in estimates brought about
by changes in such factors.

(f)
Investment properties are measured using the cost model. The fair value disclosed in
Note 13 to the financial statements is determined by BDO Unibank Group using the
discounted cash flows valuation technique which are mainly based on existing market
conditions and actual transactions at each reporting period such as selling price under
installment sales, expected timing of sale and appropriate discount rates. The expected
selling price is determined by either an independent or internal appraiser on the basis of
current appraised values of the properties or similar properties in the same location and
condition (see Note 7.5).
For investment properties with appraisal conducted prior to the end of the current
reporting period, management determines whether there are significant circumstances
during the intervening period that may require adjustments or changes in the disclosure
of fair value of those properties. A significant change in key inputs and sources of
information used in the determination of the fair value disclosed for those assets may
result in adjustment in the carrying amount of the assets reported in the financial
statements if their fair value will indicate evidence of impairment.

(g) Determination of Realizable Amount of Deferred Tax Assets

BDO Unibank Group reviews its deferred tax assets at the end of each reporting period
and reduces the carrying amount to the extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of the deferred tax assets to be utilized.
Significant judgment is applied by the management to determine the amount of deferred
tax assets that can be recognized based on the likely timing and level of BDO Unibank

performance in determining the sufficiency of the future taxable income to support the
recognition of deferred tax assets.

The carrying value of deferred tax assets, which management assessed to be utilized
within the next two to three years, as of December 31, 2021 and 2020 is disclosed in
Note 31.1.
 - 44 -

(h) Impairment of Non-financial Assets

Except for goodwill and other intangible assets with indefinite useful lives, PFRS
requires that an impairment review be performed when certain impairment indicators are
-financial
assets is discussed in detail in Note 2.21. Though management believes that the
assumptions used in the estimation of fair values reflected in the financial statements are
appropriate and reasonable, significant changes in these assumptions may materially
affect the assessment of recoverable values and any resulting impairment loss could have
a material adverse effect on the results of operations.
Impairment losses recognized in profit or loss are disclosed in Note 16.

(i) Valuation of Post-employment Defined Benefit

The -employment
and other retirement benefits is dependent on the selection of certain assumptions used
by actuaries in calculating such amounts. Those assumptions are described in Note 26.2
and include, among others, discount rates, expected rate of return on plan asset and salary
increase rates. A significant change in any of these actuarial assumptions may generally
affect the recognized expense, other comprehensive income or losses and the carrying
amount of the post-employment benefit obligation in the next reporting period.
The amounts of post-employment benefit obligation and expense and an analysis of the
movements in the estimated present value of post-employment benefit obligation, as well
as the significant assumptions in estimating such obligation are presented in Note 26.2.

(j) Recognition of Reward Points

BDO Unibank Group provides rewards points to its banking clients and customers based
on the month-to-date average daily balance they maintain in their personal CASA. Reward
points are redeemable in a wide selection of reward categories, including travel,
merchandise of third parties, reward credits and gift certificates. Certain loyalty points for
credit card have no expiration date unless the credit card is cancelled but for other rewards
program, unredeemed points may expire at some future date.

BDO Unibank Group sets up a liability to cover the cost of future reward redemptions for
points earned to date. The estimated liability is based upon points earned by the clients and
the current cost per point of redemption. The estimated points to be redeemed are
measured and adjusted based on many factors including but not limited to past redemption
behavior of the clients, product type on which the points are earned and their ultimate
redemption rate on the points earned to date but not yet redeemed.

BDO Unibank Group continually evaluates its estimates for rewards based on developments
in redemption patterns, cost per point redeemed and other factors. The estimated liability
for unredeemed points is impacted over time by enrollment levels, amount of points earned
and redeemed, weighted-average cost per point, redemption choices made by the clients and
other membership rewards program changes. The calculation is most sensitive to changes in
the estimated ultimate redemption rate. This rate is based on the expectation that a large
majority of all points earned will eventually be redeemed and the rewards will be redeemed
through goods or services supplied by a third party or affiliated retail partners based on
 - 45 -

The carrying value of the rewards points accrued by BDO Unibank Group are presented
as part of Accrued expenses under Other Liabilities account in the statement of financial
position as disclosed in Note 21.

(k) Valuation of Legal Policy Reserves

Legal policy reserves represent estimates of present value of future benefits and expenses
in excess of present value of future gross premiums. These estimates are based on
interest rates, mortality/morbidity tables, and valuation method subject to the provisions
of the Insurance Code and guidelines set by IC.
The liability for life insurance contracts uses the discount rate as provided by the IC with
other assumptions based on best estimate with regard to significant recent experience
and appropriate margin for adverse deviation from the expected experience. At each
reporting date, these estimates are reassessed for adequacy and changes will be reflected
in adjustments to the liability. The main assumptions used relate to mortality, morbidity,
lapse, and discount rate.
For life insurance contracts, estimates are made as to the expected number of deaths and
lapses for each of the years in which the BDO Unibank Group is exposed to risk. The
BDO Unibank Group uses mortality tables and lapse rates subject to the guidelines set by
the IC as the basis of these estimates. The estimated number of lapses, deaths, illness or
injury determines the value of possible future benefits to be paid out, which will be factored
into ensuring sufficient cover by reserves, which in return is monitored against current and
future premiums.

(l) Fair Value Measurement of Share Options

The BDO Unibank Group estimates the fair value of the executive stock option by
applying the Black-Scholes Option pricing model, considering the terms and conditions on
which the stock option plan was granted. The estimates and assumptions used include,
-free interest rate, expected
dividend yield, volatility of the BDO Unibank Group
BDO Unibank Group n shares. Changes in these factors can affect the fair value
of stock options at grant date.

4. RISK MANAGEMENT
With its culture of managing risk prudently within its capacity and capabilities, the BDO
Unibank Group will pursue its strategy and business plans to provide consistent quality service
to its customers, to achieve its desired long-term target returns to its shareholders and satisfy or
abide by the needs of its other stakeholders, including its depositors and regulators.
The BDO Unibank Group believes that, as there are opportunities, there are associated risks
and the objective is not to totally avoid risks, but to adequately and consistently evaluate,
manage, control, and monitor the risks and ensure that the BDO Unibank Group is adequately
compensated for all the risks taken. Good risk management involves making informed and
rational decisions about the level of risks the institution wants to take, in the pursuit of its
objectives, but with consideration to return commensurate with the risk-taking activity.
 - 46 -

events. Hence, the BDO Unibank Group ensures:

strong financial position by maintaining adequate capital ratios;

sound management of liquidity; and,

ability to generate sustainable earnings commensurate with the risks taken.

For credit risk, market risk, and liquidity risk, the BDO Unibank Group ensures that these are
within Board-approved operating limits. For operational risk (which includes legal, regulatory,
compliance risks), and reputational risks, these are invariably managed by the development

monitors and updates operational policies and procedures with respect to the BDO Unibank

Risk management at BDO Unibank Group begins at the highest level of the organization. At
the helm of the risk management infrastructure is the BOD who is responsible for establishing
and maintaining a sound risk management system. The BOD assumes oversight over the entire
risk management process and has the ultimate responsibility for all risks taken. It regularly
lerance for risks, as well as, its business strategy and risk
philosophy.
The BOD has constituted the Risk Management Committee (RMC) as the Board-Level
Committee responsible for the oversight of the risk management program. Considering the
importance of appropriately addressing credit risk, the BOD has also constituted the Executive
Committee. The Executive Committee is responsible for approving credit-specific transactions,
while the RMC is responsible for approving risk appetite levels, policies, and risk tolerance limits
related to credit portfolio risk, market risk, liquidity risk, interest rate risk, operational risk
(including business continuity risk, IT risk, information security and cyber-security risk, data
privacy risk, and social media risk), consumer protection risk and environmental and social risk

strategic direction and overall risk appetite.

verall risk management system is the Assets and Liabilities
Committee (ALCO), which is responsible for managing the BDO Unibank
statement of financial position, including the BDO Unibank
rate and foreign exchange related risks. In addition, ALCO formulates investment and
financial policies by determining the asset allocation and funding mix strategies that are
likely to yield the targeted financial results.
BDO Unibank Group operates an enterprise-wide risk management system to address the
risks it faces in its banking activities. The Risk Management Group (RMG) is mandated to
adequately and consistently evaluate, manage, control, and monitor the overall risk profile of
the BDO Unibank , i.e., credit, market,
liquidity, interest rate, and operational risks, including business continuity risk, IT risk,
information security, cyber-security, and data privacy risk, to optimize the risk-reward balance
and maximize return on capital. RMG also has the responsibility for recommending to the
appropriate body, risk policies across the full range of risks to which the BDO Unibank Group
is exposed. RMG functionally reports to the RMC.
 - 47 -

The evaluation, analysis, and control performed by the Risk Function, in conjunction with the
Risk Takers, constitute the risk management process. The risk management process is applied
at three levels: the transaction level, the business unit level, and the portfolio level. This
framework ensures that risks are properly identified, quantified and analyzed, in the light of
its potential effect on the BDO Unibank
process is to ensure rigorous adherence to the BDO Unibank
in risk measurement and reporting and to make possible, in-depth analysis of the deployment
of capital and the returns that are delivered to the shareholders.

In 2021, there is no significant change on the policies and process for managing the risk and
the methods used to measure the risk of the BDO Unibank Group and the Parent Bank,
except for the performance of the comprehensive review of the financial instruments,
particularly for loan accounts, to assess vulnerability to the significant increase in credit risk in
response to the continuing impact of COVID-19 pandemic, updating of the BDO Unibank
Treasury system to capture the complex computation of Secured Overnight Financing
Rate (SOFR) in relation to the LIBOR phase out and adhering to the protocols set by
International Swaps and Derivatives Association (ISDA) on LIBOR Reform (see Note 4.6).

4.1 Liquidity Risk

Liquidity risk is the risk that there could be insufficient funds available to repay depositors, to
fulfill commitments to lend, or to meet any other liquidity commitments. BDO Unibank
Group manages liquidity risk by holding sufficient liquid assets of appropriate quality to meet
funding requirements, manage and control liquidity gaps through Maximum Cumulative
Outflow (MCO) limits, regular liquidity stress testing to ensure positive cashflow across all
identified stress scenarios, and establishment of a Liquidity Contingency Plan, to ensure
adequate liquidity under both business-as-usual and stress conditions.

The analysis of the maturity groupings of resources, liabilities and off-book items as of
December 31, 2021 and 2020 in accordance with account classification of the BSP is presented
in the succeeding pages. The amounts disclosed in the maturity analysis are the contractual
cash flows using the primary contractual maturities or behavioral assumptions on core levels
(e.g., core deposit liabilities and core deposit substitutes with maturities within one year have
been classified in the more than three years category), if the latter is more relevant for purposes
of profiling the liquidity gap.
 - 48 -

BDO Unibank Group

2021
More
One to Than Three More Than More
Three Months to One Year to Than Three
Months One Year Three Years Years Total

Resources:
Cash and other
cash items P 69,105 P - P - P - P 69,105
Due from BSP and
other banks 150,526 22,027 55,300 147,145 374,998
Trading and investment
securities 22,687 31,904 140,229 421,441 616,261
Loans and other
receivables - net 503,503 252,927 395,115 1,299,358 2,450,903
Other resources - net* - 118 46 112,318 112,482
Total Resources 745,821 306,976 590,690 1,980,262 3,623,749

Liabilities and Equity:

Deposit liabilities 563,666 177,738 595,385 1,484,107 2,820,896
Bills payable 24,278 89,567 55,139 35,447 204,431
Insurance contract
liabilities** 349 ( 613) 206 65,386 65,328
Other liabilities 41,159 4,099 4,601 58,687 108,546
Total Liabilities 629,452 270,791 655,331 1,643,627 3,199,201
Equity - - - 424,548 424,548

Total Liabilities and Equity 629,452 270,791 655,331 2,068,175 3,623,749

On-book gap 116,369 36,185 ( 64,641 ) ( 87,913 ) -

Cumulative on-book gap 116,369 152,554 87,913 - -

Contingent assets 263,000 81,896 20,865 23,227 388,988

Contingent liabilities 325,897 82,924 28,606 23,100 460,527
Off-book gap ( 62,897) ( 1,028) ( 7,741 ) 127 ( 71,539 )

Net Periodic Gap 53,472 35,157 ( 72,382 ) ( 87,786 ) 71,539

Cumulative Total Gap P 53,472 P 88,629 P 16,247 (P 71,539 ) P -

* Other resources include Premises, Furniture, Fixtures and Equipment, Investment Properties and Other Resources.
** Insurance Contract Liabilities with maturity of more than three months to one year have negative aging because the renewal premiums (inflow) are
greater than the expected insurance benefit liability.
 - 49 -

BDO Unibank Group

2020
More
One to Than Three More Than More
Three Months to One Year to Than Three
Months One Year Three Years Years Total

Resources:
Cash and other
cash items P 74,851 P - P - P - P 74,851
Due from BSP and
other banks 177,536 625 3,147 192,617 373,925
Trading and investment
securities 78,817 20,246 102,007 307,740 508,810
Loans and other
receivables - net 446,216 249,633 345,380 1,260,752 2,301,981
Other resources - net* - 108 40 115,185 115,333
Total Resources 777,420 270,612 450,574 1,876,294 3,374,900

Liabilities and Equity:

Deposit liabilities 589,956 22,147 30,071 1,967,977 2,610,151
Bills payable 34,050 33,142 112,819 29,733 209,744
Insurance contract
liabilities** 409 443 ( 460 ) 58,018 58,410
Other liabilities 36,785 1,596 1,623 63,570 103,574
Total Liabilities 661,200 57,328 144,053 2,119,298 2,981,879
Equity - - - 393,021 393,021

Total Liabilities and Equity 661,200 57,328 144,053 2,512,319 3,374,900

On-book gap 116,220 213,284 306,521 ( 636,025) -

Cumulative on-book gap 116,220 329,504 636,025 - -

Contingent assets 225,816 56,673 26,387 16,559 325,435

Contingent liabilities 279,492 58,342 26,171 16,462 380,467

Off-book gap ( 53,676) ( 1,669) 216 97 ( 55,032 )

Net Periodic Gap 62,544 211,615 306,737 ( 635,928 ) 55,032

Cumulative Total Gap P 62,544 P 274,159 P 580,896 (P 55,032 ) P -

* Other resources includes Premises, Furniture, Fixtures and Equipment, Investment Properties and Other Resources.
** Insurance Contract Liabilities with maturities of one to three months and more than one to three years have negative aging because the renewal
premiums (inflow) are greater than the expected insurance benefit liability.
 - 50 -

Parent Bank

2021
More
One to Than Three More Than More
Three Months to One Year to Than Three
Months One Year Three Years Years Total

Resources:
Cash and other
cash items P 66,440 P - P - P - P 66,440
Due from BSP and
other banks 143,601 21,971 55,296 146,141 367,009
Trading and investment
securities 8,166 27,987 119,732 342,078 497,963
Loans and other
receivables net 494,423 239,634 371,315 1,294,611 2,399,983
Other resources net* - - - 134,611 134,611

Total Resources P 712,630 P 289,592 P 546,343 P 1,917,441 P 3,466,006

Liabilities and Equity:

Deposit liabilities 538,429 175,500 595,264 1,442,522 2,751,715
Bills payable 17,687 89,068 52,305 37,114 196,174
Other liabilities 37,139 2,806 2,543 52,168 94,656
Total Liabilities 593,255 267,374 650,112 1,531,804 3,042,545
Equity - - - 423,461 423,461

Total Liabilities and Equity 593,255 267,374 650,112 1,955,265 3,466,006

On-book gap 119,375 22,218 ( 103,769 ) ( 37,824) -

Cumulative on-book gap 119,375 141,593 37,824 - -

Contingent assets 259,638 63,697 2,998 3,022 329,355

Contingent liabilities 322,537 64,872 10,972 3,021 401,402

Off-book gap ( 62,899 ) ( 1,175) ( 7,974) 1 ( 72,047 )

Net Periodic Gap 56,476 21,043 ( 111,743 ) ( 37,823 ) 72,047

Cumulative Total Gap P 56,476 P 77,519 (P 34,224 ) (P 72,047) P -

* Other resources includes Premises, Furniture, Fixtures and Equipment, Investment Properties and Other Resources.
 - 51 -

Parent Bank

2020
More
One to Than Three More Than More
Three Months to One Year to Than Three
Months One Year Three Years Years Total

Resources:
Cash and other
cash items P 72,301 P - P - P - P 72,301
Due from BSP and
other banks 173,187 602 3,137 191,434 368,360
Trading and investment
securities 63,707 14,954 87,606 233,189 399,456
Loans and other
receivables - net 436,324 238,203 325,923 1,259,236 2,259,686
Other resources - net* - - - 135,580 135,580
Total Resources P 745,519 P 253,759 P 416,666 P 1,819,439 P 3,235,383

Liabilities and Equity:

Deposit liabilities 569,949 19,984 29,793 1,928,565 2,548,291
Bills payable 25,974 32,629 110,932 33,332 202,867
Other liabilities 33,307 242 - 58,622 92,171
Total Liabilities 629,230 52,855 140,725 2,020,519 2,843,329
Equity - - - 392,054 392,054

Total Liabilities and Equity 629,230 52,855 140,725 2,412,573 3,235,383

On-book gap 116,289 200,904 275,941 ( 593,134) -

Cumulative on-book gap 116,289 317,193 593,134 - -

Contingent assets 216,952 54,412 3,278 1,579 276,221

Contingent liabilities 270,656 56,271 3,322 1,605 331,854

Off-book gap ( 53,704 ) ( 1,859) ( 44) ( 26) ( 55,633 )

Net Periodic Gap 62,585 199,045 275,897 ( 593,160 ) 55,633

Cumulative Total Gap P 62,585 P 261,630 P 537,527 (P 55,633) P -

* Other resources includes Premises, Furniture, Fixtures and Equipment, Investment Properties and Other Resources.

The negative liquidity gap in the MCO is due to the timing difference in the contractual
maturities of resources and liabilities. The MCO measures the maximum funding requirement
the BDO Unibank Group may need to support its maturing obligations. To ensure that the
BDO Unibank Group maintains a prudent and manageable level of cumulative negative gap,
the BDO Unibank Group maintains a pool of highly liquid assets in the form of tradable
investment securities. Moreover, the BOD has approved the MCO Limits which reflect the
BDO Unibank Group
year. Compliance to MCO Limits is monitored and reported to the BOD and senior
management.

In case of breach in the MCO Limit, the RMG elevates the concern to the BOD through the
RMC for corrective action by senior management. Additional measures to mitigate liquidity
risks include reporting of funding concentration, short-term liquidity reporting, available funding
sources, and liquid assets analysis. More frequent analysis of projected funding source and
requirements as well as pricing strategies is discussed thoroughly during the weekly ALCO
meetings.
 - 52 -

Pursuant to applicable BSP regulations, the BDO Unibank Group is required to maintain
reserves against deposit liabilities which are based on certain percentages of deposits. The
required reserves against deposit liabilities shall be kept in the form of deposits placed in the
BDO Unibank Group demand deposit accounts with the BSP. The BSP also requires the BDO
Unibank Group to maintain asset cover of 100% for foreign currency-denominated liabilities of
its FCDU.

4.1.1 Liquidity Risk Stress

To augment the effectiveness of the BDO Unibank e BDO Unibank
Group regularly assesses liquidity risk based on behavioral and hypothetical assumptions under
stress conditions. Survivability and resilience of the BDO Unibank Group are assessed for a
minimum stress period of 30 days for all crisis scenarios enumerated in BSP Circular No. 981,
Guidelines on Liquidity Risk Management. The results of these liquidity stress simulations are
reported monthly to RMC.
4.1.2 Foreign Currency Liquidity Management
The liquidity risk management policies and objectives described in this section also apply to the
management of any foreign currency to which the BDO Unibank Group maintains significant
exposure. Specifically, the BDO Unibank Group ensures that its measurement, monitoring and
control systems account for these exposures as well. The BDO Unibank Group sets and
regularly reviews limits on the size of the cash flow mismatches for each significant individual
currency and in aggregate over appropriate time horizons. The BDO Unibank Group also
assesses its access to foreign exchange markets when setting up its risk limits.
4.2 Market Risk

the price of a financial instrument, relates primarily to its holdings in foreign exchange
instruments, debt securities, equity securities and derivatives. BDO Unibank Group manages
its risk by identifying, analyzing and measuring relevant or likely market risks. The Market and
Liquidity Risk Management Unit of the Parent Bank recommends market risk limits based on

4.2.1 Foreign Exchange Risk

BDO Unibank Group manages its exposure to effects of fluctuations in the foreign currency
exchange rates by maintaining foreign currency exposure within the existing regulatory
guidelines and at a level that it believes to be relatively conservative for a financial institution
engaged in that type of business.
s computed as its foreign currency
resources less foreign currency liabilities. BSP regulations impose a cap of 25% of qualifying
capital or US$150 million, whichever is lower, on
exchange position.
the day-to-day, over-the-counter buying and selling of foreign exchange in BDO Unibank
hange trading with corporate accounts and other
financial institutions. BDO Unibank Group, being a major market participant in the
Philippine Dealing System, may engage in proprietary trading to take advantage of foreign
exchange fluctuations.
BDO Uniban -of-day is guided by the limits set

prescribed ceilings mandated by the BSP. At the end of each day, BDO Unibank Group
reports to the BSP on its compliance with the mandated foreign currency exposure limits.
 - 53 -

In addition, it also reports to the BSP on the respective foreign currency positions of its
subsidiaries. The breakdown of the financial assets and financial liabilities as to foreign and
peso-denominated balances as of December 31, 2021 and 2020 follows:
BDO Unibank Group

2021 2020
Foreign Philippine Foreign Philippine
Currencies Pesos Total Currencies Pesos Total

Resources:
Cash and other cash items
and due from BSP P 107 P 373,904 P 374,011 P 118 P 383,369 P 383,487
Due from other banks 68,401 1,691 70,092 64,877 412 65,289
Trading and investment
securities:
At FVTPL 6,622 41,312 47,934 5,701 31,409 37,110
At FVOCI 86,804 83,989 170,793 88,748 96,133 184,881
At amortized cost 164,529 233,005 397,534 153,492 133,327 286,819
Loans and other receivables 331,327 2,119,576 2,450,903 292,865 2,009,116 2,301,981
Other resources 6,214 1,246 7,460 8,824 438 9,262

P 664,004 P 2,854,723 P 3,518,727 P 614,625 P 2,654,204 P 3,268,829

Liabilities:
Deposit liabilities P 463,368 P 2,357,528 P 2,820,896 P 418,262 P 2,191,889 P 2,610,151
Bills payable 120,920 83,511 204,431 126,894 82,850 209,744
Insurance contract liabilities 8,702 56,626 65,328 8,376 50,034 58,410
Other liabilities 16,951 80,666 97,617 6,850 86,890 93,740

P 609,941 P 2,578,331 P 3,188,272 P 560,382 P 2,411,663 P 2,972,045

Parent Bank

2021 2020
Foreign Philippine Foreign Philippine
Currencies Pesos Total Currencies Pesos Total

Resources:
Cash and other cash items
and due from BSP P 33 P 369,067 P 369,100 P 41 P 377,339 P 377,380
Due from other banks 64,188 161 64,349 63,015 266 63,281
Trading and investment
securities:
At FVTPL 2,759 1,857 4,616 3,037 1,825 4,862
At FVOCI 74,197 41,768 115,965 71,907 55,015 126,922
At amortized cost 159,235 218,147 377,382 146,757 120,915 267,672
Loans and other receivables 330,424 2,069,559 2,399,983 291,879 1,967,807 2,259,686
Other resources 5,784 968 6,752 8,756 78 8,834

P 636,620 P 2,701,527 P 3,338,147 P 585,392 P 2,523,245 P 3,108,637

Liabilities:
Deposit liabilities P 450,484 P 2,301,231 P 2,751,715 P 401,030 P 2,147,261 P 2,548,291
Bills payable 119,738 76,436 196,174 126,711 76,156 202,867
Other liabilities 15,927 69,452 85,379 6,188 77,727 83,915

P 586,149 P 2,447,119 P 3,033,268 P 533,929 P 2,301,144 P 2,835,073

 - 54 -

4.2.2 Interest Rate Risk

BDO Unibank Group prepares an interest rate gap analysis in the Banking Book to measure
the sensitivity of its resources, liabilities and off-book items to interest rate fluctuations. The
Banking Book is a term for resources statement of financial position that are
expected to be held to maturity, usually consisting of customer loans to and deposits from
retail and corporate customers. The Banking Book can also include those derivatives that are
used to hedge exposures arising from the Banking Book activity, including interest rate risk.
The focus of analysis is the impact of changes in interest rates on accrual or reported earnings.
This analysis would give management a glimpse of the re-pricing profile of its interest sensitive
resources and liabilities in the Banking Book.
An interest rate gap report is prepared by classifying all resources and liabilities into various time
buckets according to contracted maturities if fixed or anticipated repricing dates if floating, or
based on behavioral assumptions if more applicable. In the interest rate gap presented, loans
and investments are profiled based on next repricing if floating or contracted maturity if fixed
rate while non-maturity deposit liabilities are considered non-rate sensitive. The difference in
the amount of resources and liabilities maturing or being repriced in any time period category
would then give BDO Unibank Group an indication of the extent to which it is exposed to the
risk of potential changes in net interest income. Interest rate financial instruments (e.g., interest
rate derivatives) may be used to hedge the interest rate exposures in the Banking Book. There
are however, no outstanding interest rate derivatives used as hedges in the Banking Book.
The analyses of the groupings of resources, liabilities and off-book items as of
December 31, 2021 and 2020 based on the expected interest realization or recognition are
shown below and in the succeeding pages.
BDO Unibank Group

2021
More More
One to Than Three Than One More
Three Months to Year to Than Five Non-rate
Months One Year Five Years Years Sensitive Total

Resources:
Cash and other
cash items P - P - P - P - P 69,105 P 69,105
Due from BSP and
other banks 41,470 - - - 333,528 374,998
Trading and
investment
securities 8,346 31,238 231,337 297,406 47,934 616,261
Loans and other
receivables - net 1,140,250 287,117 904,358 119,178 - 2,450,903
Other resources - net* - - - - 112,482 112,482

Total Resources 1,190,066 318,355 1,135,695 416,584 563,049 3,623,749

Liabilities and Equity:

Deposit liabilities 328,737 48,785 48,092 13,868 2,381,414 2,820,896
Bills payable 42,137 89,567 72,727 - - 204,431
Insurance contract
liabilities** ( 364) ( 1,322) 1,038 39,713 26,263 65,328
Other liabilities - 33 438 4 108,071 108,546
Total Liabilities 370,510 137,063 122,295 53,585 2,515,748 3,199,201
Equity - - - - 424,548 424,548

Total Liabilities and Equity

(Balance carrried forward) P 370,510 P 137,063 P 122,295 P 53,585 P 2,940,296 P 3,623,749

* Other resources includes Premises, Furniture, Fixtures and Equipment, Investment Properties and Other Resources.
** Insurance Contract Liabilities with maturities of one to three months and more than three months to one year have negative aging because the
renewal premiums (inflow) are greater than the expected insurance benefit liability.
 - 55 -

BDO Unibank Group

2021
More More
One to Than Three Than One More
Three Months to Year to Than Five Non-rate
Months One Year Five Years Years Sensitive Total

Total Liabilities and Equity

(Balance brought forward) P 370,510 P 137,063 P 122,295 P 53,585 P 2,940,296 P 3,623,749

On-book gap 819,556 181,292 1,013,400 362,999 ( 2,377,247) -

Cumulative on-book gap 819,556 1,000,848 2,014,248 2,377,247 - -

Contingent assets 7,583 4,151 - - - 11,734

Contingent liabilities 2,523 4,164 - - - 6,687

Off-book gap 5,060 ( 13) - - - 5,047

Net Periodic Gap 824,616 181,279 1,013,400 362,999 ( 2,377,247) ( 5,047 )

Cumulative Total Gap P 824,616 P 1,005,895 P 2,019,295 P 2,382,294 P 5,047 P -

2020
More More
One to Than Three Than One More
Three Months to Year to Than Five Non-rate
Months One Year Five Years Years Sensitive Total

Resources:
Cash and other
cash items P - P - P - P - P 74,851 P 74,851
Due from BSP and
other banks 76,419 - - - 297,506 373,925
Trading and
investment
securities 66,844 19,653 243,498 141,705 37,110 508,810
Loans and other
receivables - net 1,033,420 267,692 821,195 179,674 - 2,301,981
Other resources - net* - - - - 115,333 115,333

Total Resources 1,176,683 287,345 1,064,693 321,379 524,800 3,374,900

Liabilities and Equity:

Deposit liabilities 379,153 45,248 59,749 13,294 2,112,707 2,610,151
Bills payable 38,852 30,744 117,622 22,526 - 209,744
Insurance contract
liabilities** ( 180 ) 21 605 39,976 17,988 58,410
Other liabilities - 17 112 3 103,442 103,574
Total Liabilities 417,825 76,030 178,088 75,799 2,234,137 2,981,879
Equity - - - - 393,021 393,021

Total Liabilities and Equity

(Balance carried forward) P 417,825 P 76,030 P 178,088 P 75,799 P 2,627,158 P 3,374,900

* Other resources includes Premises, Furniture, Fixtures and Equipment, Investment Properties and Other Resources.
** Insurance Contract Liabilities with maturity of one to three months have negative aging because the renewal premiums (inflow) are greater than the
expected insurance benefit liability.
 - 56 -

BDO Unibank Group

2020
More More
One to Than Three Than One More
Three Months to Year to Than Five Non-rate
Months One Year Five Years Years Sensitive Total

Total Liabilities and Equity

(Balance brought forward) P 417,825 P 76,030 P 178,088 P 75,799 P 2,627,158 P 3,374,900

On-book gap 758,858 211,315 886,605 245,580 ( 2,102,358 ) -

Cumulative on-book gap 758,858 970,173 1,856,778 2,102,358 - -

Contingent assets 3,434 1,637 - - - 5,071

Contingent liabilities 9,605 3,362 - - - 12,967

Off-book gap ( 6,171 ) ( 1,725 ) - - - ( 7,896 )

Net Periodic Gap 752,687 209,590 886,605 245,580 ( 2,102,358 ) 7,896

Cumulative Total Gap P 752,687 P 962,277 P 1,848,882 P 2,094,462 (P 7,896 ) P -

Parent Bank

2021
More More
One to Than Three Than One More
Three Months to Year to Than Five Non-rate
Months One Year Five Years Years Sensitive Total

Resources:
Cash and other
cash items P - P - P - P - P 66,440 P 66,440
Due from BSP and
other banks 40,800 - - - 326,209 367,009
Trading and
investment
securities 6,023 27,987 202,032 257,306 4,615 497,963
Loans and other
receivables - net 1,133,066 279,191 868,587 119,139 - 2,399,983
Other resources - net* - - - - 134,611 134,611
Total Resources 1,179,889 307,178 1,070,619 376,445 531,875 3,466,006

Liabilities and Equity:

Deposit liabilities 312,535 44,502 47,101 18,239 2,329,338 2,751,715
Bills payable 35,546 89,068 71,560 - - 196,174
Other liabilities - - - - 94,656 94,656
Total Liabilities 348,081 133,570 118,661 18,239 2,423,994 3,042,545
Equity - - - - 423,461 423,461

Total Liabilities and Equity 348,081 133,570 118,661 18,239 2,847,455 3,466,006

On-book gap 831,808 173,608 951,958 358,206 ( 2,315,580) -

Cumulative on-book gap 831,808 1,005,416 1,957,374 2,315,580 - -

Contingent assets 5,231 2,634 - - - 7,865

Contingent liabilities 131 2,634 - - - 2,765

Off-book gap 5,100 - - - - 5,100

Net Periodic Gap 836,908 173,608 951,958 358,206 ( 2,315,580) ( 5,100)

Cumulative Total Gap P 836,908 P 1,010,516 P 1,962,474 P 2,320,680 P 5,100 P -

* Other resources include Premises, Furniture, Fixtures and Equipment, Investment Properties and Other Resources.
 - 57 -

Parent Bank

2020
More More
One to Than Three Than One More
Three Months to Year to Than Five Non-rate
Months One Year Five Years Years Sensitive Total

Resources:
Cash and other
cash items P - P - P - P - P 72,301 P 72,301
Due from BSP and
other banks 76,050 - - - 292,310 368,360
Trading and
investment
securities 60,618 14,954 213,307 105,715 4,862 399,456
Loans and other
receivables - net 1,025,361 261,052 792,783 180,490 - 2,259,686
Other resources - net* - - - - 135,580 135,580

Total Resources 1,162,029 276,006 1,006,090 286,205 505,053 3,235,383

Liabilities and Equity:

Deposit liabilities 363,719 40,255 59,014 17,297 2,068,006 2,548,291
Bills payable 30,776 30,232 115,735 26,124 - 202,867
Other liabilities - - - - 92,171 92,171
Total Liabilities 394,495 70,487 174,749 43,421 2,160,177 2,843,329
Equity - - - - 392,054 392,054

Total Liabilities and Equity 394,495 70,487 174,749 43,421 2,552,231 3,235,383

On-book gap 767,534 205,519 831,341 242,784 ( 2,047,178 ) -

Cumulative on-book gap 767,534 973,053 1,804,394 2,047,178 - -

Contingent assets 1 1,146 - - - 1,147

Contingent liabilities 6,244 2,881 - - - 9,125

Off-book gap ( 6,243 ) ( 1,735) - - - ( 7,978 )

Net Periodic Gap 761,291 203,784 831,341 242,784 ( 2,047,178 ) 7,978

Cumulative Total Gap P 761,291 P 965,075 P 1,796,416 P 2,039,200 (P 7,978 ) P -

* Other resources include Premises, Furniture, Fixtures and Equipment, Investment Properties and Other Resources.

categorized as limits on:

Value-at-risk (VaR) The RMG computes the VaR benchmarked at a level, which is a
percentage of projected earnings. The BDO Unibank Group and the Parent Bank use the
VaR model to estimate the daily potential loss that the BDO Unibank Group and the
Parent Bank can incur from its trading book, based on a number of assumptions with a
confidence level of 99%. The measurement is designed such that exceptions over limits
should only arise in very exceptional circumstances.

Stop loss The RMG sets the amount of each risk-bearing activity at a percentage of the
budgeted annual income for such activity.

Nominal position The RMG sets the nominal amount to prevent over-trading, excessive
concentration, and to limit financial loss supplementing other established limits.
 - 58 -

Trading volume The RMG sets the volume of transactions that any employee may
execute at various levels based on the rank of the personnel making the risk-bearing
decision.

Earnings-at-risk (EAR) The RMG computes the EAR based on the repricing profile of
the Banking Book and benchmarks against projected annual net interest income and
capital.

market risk. VaR is defined as a statistical estimate of the maximum possible loss on a given
position during a time horizon within a given confidence interval. The BDO Unibank Group
and the Parent Bank use a 99% confidence level and a 260-day observation period in VaR
calculation. The BDO Unibank
percentage of projected earnings and is used to alert senior management whenever the

levels. Because the VaR measure is tied to market volatility, it therefore allows management to
react quickly and adjust its portfolio strategies in different market conditions in accordance
with its risk philosophy and appetite. The VaR model is validated through back-testing.

Although VaR is an important tool for measuring market risk, the assumptions on which the
model is based do give rise to some limitations, including the following:

A one-day holding period assumes that it is possible to hedge or dispose of positions

within that period. This is considered to be a realistic assumption in almost all cases but
may not be the case in situations in which there is severe market illiquidity for a prolonged
period;

A 99% confidence level does not reflect losses that may occur beyond this level. Even
within the model used, there is a one percent probability that losses could exceed the VaR;

VaR is calculated on an end-of-day basis and does not reflect exposures that may arise on
positions during the trading day;

The use of historical data as a basis for determining the possible range of future outcomes
may not always cover all possible scenarios, especially those of an exceptional nature; and,

The VaR
position and the volatility of market prices. The VaR of an unchanged position reduces if
the market price volatility declines and vice-versa.
The limitations of the VaR methodology are recognized by supplementing VaR limits
with other position and sensitivity limit structures, including limits to address potential
concentration risks within each trading portfolio. In addition, the BDO Unibank Group and
the Parent Bank use a wide range of stress tests to model the financial impact of a variety of
exceptional market scenarios on individual trading portfolios and the BDO Unibank Group
and the
complementary measure of risk. While VaR deals with risk during times of normality, stress
testing is used to measure the potential effect of a crisis or low probability event.
 - 59 -

A summary of the VaR position of the trading portfolios at December 31 follows:

2021 2020
VaR Stress VaR VaR Stress VaR
BDO Unibank Group

Foreign currency risk (P 8) (P 107) (P 30) (P 480 )

Interest rate risk Peso ( 53) ( 888) ( 85 ) ( 1,083 )
Interest rate risk USD ( 13) ( 355) ( 46) ( 581 )

(P 74) (P 1,350) (P 161) (P 2,144)

Parent Bank

Foreign currency risk (P 4) (P 56) (P 30) (P 471)

Interest rate risk Peso ( 15) ( 252 ) ( 33) ( 311)
Interest rate risk USD ( 2) ( 36) ( 27) ( 373)

(P 21) (P 344) (P 90) (P 1,155)

For the BDO Unibank Group, the earnings perspective using an EAR approach is the more
-
assumption and also because the component of earnings in focus is net interest income.
EAR is a measure of likely earnings volatility for accrual portfolios. The appropriate yield curve
used is the relevant benchmark rate and the volatilities of the relevant benchmark interest rate
curve are calculated similar to the method employed for VaR. The volatility calculations make
use of actual pre-defined time series data, using five-
99% confidence level. The frequency of measurement for EAR is monthly. EAR Stress Test
uses 300 basis points increase in USD interest rates and 400 basis points increase in Peso
interest rates.

The EAR before tax in a rising and declining interest rate scenario for financial assets and
liabilities repriced during 2021 and 2020 is shown below and in the succeeding pages.
BDO Unibank Group

2021
Change in Interest Rates (in basis points)
-100 +100 -50 +50

Change on annualized
net interest income (P 8,331) P 8,331 (P 4,165) P 4,165
As a percentage of the BDO

interest income for 2021 ( 6.34%) 6.34% ( 3.17%) 3.17%

EAR P 24,347

As a percentage of the BDO

net
interest income for 2021 18.54%

Average (1yr) EAR P 24,391

Stress EAR P 31,984

 - 60 -

BDO Unibank Group

2020
Change in Interest Rates (in basis points)
-100 +100 -50 +50

Change on annualized
net interest income (P 7,933) P 7,933 (P 3,966) P 3,966
As a percentage of the BDO

interest income for 2020 ( 5.93%) 5.93% ( 2.97%) 2.97%

EAR P 23,844

As a percentage of the BDO

net
interest income for 2020 17.83%

Average (1yr) EAR P 18,468

Stress EAR P 31,236

Parent Bank
2021
Change in Interest Rates (in basis points)
-100 +100 -50 +50

Change on annualized
net interest income (P 8,404) P 8,404 ( P 4,202) P 4,202
As a percentage of the Parent

income for 2021 ( 6.79%) 6.79% ( 3.39%) 3.39%

EAR P 24,735

As a percentage of the Parent

net interest
income for 2021 19.97%

Average (1yr) EAR P 24,627

Stress EAR P 32,233

2020
Change in Interest Rates (in basis points)
-100 +100 -50 +50

Change on annualized
net interest income (P 8,089) P 8,089 ( P 4,044) P 4,044
As a percentage of the Parent

income for 2020 ( 6.35% ) 6.35% ( 3.18%) 3.18%

EAR P 24,494
 - 61 -

Parent Bank

2020
Change in Interest Rates (in basis points)
-100 +100 -50 +50

As a percentage of the Parent

net interest
income for 2020 19.24%

Average (1yr) EAR P 18,938

Stress EAR P 31,466

4.2.3 Price Risk

The BDO Unibank Group and the Parent Bank are exposed to equity securities price risk
because of investments in equity securities held by BDO Unibank Group and Parent Bank
classified on the statement of financial position either as financial assets at FVOCI or financial
assets at FVTPL. The BDO Unibank Group and the Parent Bank are not exposed to
commodity price risk. To manage its price risk arising from investments in listed equity
securities, BDO Unibank Group maintains a diversified portfolio. Diversification of the
portfolio is done in accordance with the limits set by BDO Unibank Group.

The table below summarizes the impact of equity prices on listed equity securities classified as
financial assets at FVTPL and financial assets at FVOCI on BDO Unibank Group and Parent
d equity as of December 31, 2021 and 2020. The results are based
on the volatility assumption of the benchmark equity index, which was 3.52% and 9.71% in 2021
and 2020, respectively, for securities classified as financial assets at FVTPL and FVOCI securities
with all other variables held constant and all the BDO Unibank
equity instruments moved according to the historical correlation with the index.

Impact on Impact on Other

Net Profit After Tax Comprehensive Income
Increase Increase
2021 2020 2019 2021 2020 2019

BDO Unibank Group

Financial assets at
FVTPL P 806 P 1,554 P 335 P - P - P -
Financial assets at
FVOCI - - - 148 350 203

P 806 P 1,554 P 335 P 148 P 350 P 203

Parent Bank

Financial assets at
FVOCI P - P - P - P 30 P 291 P 48

P - P - P - P 30 P 291 P 48
 - 62 -

4.3 Credit Risk

Credit risk is the risk that the counterparty in a transaction may default and arises from
lending, trade finance, treasury, derivatives and other activities undertaken by the BDO
Unibank Group. RMG undertakes several functions with respect to credit risk management
including credit analysis, risk ratings for corporate accounts, and development and
performance monitoring of credit risk rating and scoring models for both corporate and
and procedures
are adequate to meet the demands of the business.

RMG also subjects the loan portfolio to a regular portfolio quality review, credit portfolio
stress testing and rapid portfolio reviews based on specific and potential events that may affect
borrowers in particular geographic locations or industries.

BDO Unibank Group structures the levels of credit risk it undertakes by placing limits on the
amount of risk accepted in relation to one borrower, or groups of borrowers. Such risks are
monitored on a regular basis and subject to an annual or more frequent review. Approval for
credit limits are secured from the Credit Committee. On the industry segments, set limits and
exposures are monitored and reported to the RMC.

Exposure to credit risk is managed through regular analysis of the ability of borrowers and
potential borrowers to meet interest and capital repayment obligations and by changing these
lending limits when appropriate. Exposure to credit risk is also managed in part by obtaining
collateral or corporate and personal guarantees.

4.3.1 Credit Risk Assessment

management of credit risk. On an annual basis, loans are reviewed, classified as necessary,
and rated based on internal and external factors that affect its performance. On a monthly
basis, loan classifications of impaired accounts are assessed and the results are used as basis
for the review of loan loss provisions.
risk
ratings are as follows:

Current : Grades AAA to B

Watchlisted : Grade B-
Especially Mentioned : Grade C
Substandard : Grade D
Doubtful : Grade E
Loss : Grade F

Once an account is Watchlisted or Adversely Classified, the resulting risk rating grade is
aligned based on the above classification.
 - 63 -

(a) Current

These are individual credits that do not have a greater-than-normal risk and do not possess
the characteristics of adversely classified loans. These are credits that have the apparent
ability to satisfy their obligations in full and therefore, no loss in ultimate collection is
anticipated. These are adequately secured by readily marketable collateral or other forms
of support security or are supported by sufficient credit and financial information of
favorable nature to assure repayment as agreed.

(b) Watchlisted

Since early identification of troublesome or potential accounts is vital in portfolio

on of credit accounts is maintained. These
accounts are not adversely classified but they require more than normal attention to
prevent these accounts from deteriorating to said category.

Past due or individually impaired financial assets comprise accounts under the following risk
ratings:

(c) Adversely Classified

(i) Especially Mentioned (EM)

It is an adverse classification of loans/accounts that have potential weaknesses

uncorrected, may affect the repayment of the loan and thus increase credit risk to
BDO Unibank Group.

(ii) Substandard

have well-defined weakness/(es) that may jeopardize repayment/liquidation in full,

either in respect of the business, cash flow or financial position, which may include
adverse trends or developments that affect willingness or repayment ability of the
borrower.

(iii) Doubtful

more severe weaknesses than

the basis of currently known facts, conditions and values make collection or liquidation
highly improbable, however, the exact amount remains undeterminable as yet.
ferred because of specific pending factors, which may
strengthen the assets.

(iv) Loss

considered uncollectible or worthless, and of such little value that their continuance as
bankable assets are not warranted although the loans may have some recovery or
salvage value.

This shall be viewed as a transitional category for loans and other credit
accommodations, which have been identified as requiring write-off during the
current reporting period even though partial recovery may be obtained in the future.
 - 64 -

In addition to the above, credit portfolio review is another integral part of BDO Unibank
ost approval
review of individual credits whose main objective is to help monitor and maintain sound and
healthy risk asset portfolio. Parameters of the credit portfolio review are structured so as to
reflect both sides of the risk management equation such as credit quality and process. This
function actuates the philosophy that credit quality is derived from sound risk management
process. The credit quality of financial assets is managed by BDO Unibank Group using internal
credit ratings.

4.3.2 Credit Quality Analysis

The following table sets out information about the credit quality of loans and other receivables,
financial assets measured at amortized cost, and FVOCI debt investments. Unless specifically
indicated for financial assets, the amounts in the table represent gross carrying amounts. For
loan commitments and other contingent accounts, the amounts in the table represent the amounts
committed. As of December 31, 2021 and 2020, there are no POCI financial assets in both BDO
Unibank Group and Parent Bank financial statements.

The following table shows the exposure to credit risk as of December 31, 2021 and 2020 for
each internal risk grade and the related allowance for ECL:

BDO Unibank Group

2021
Stage 1 Stage 2 Stage 3 Total

Receivables from customers - corporate

Grades AAA to B : Current P 1,733,845 P - P - P 1,733,845
Grade B- : Watchlisted 106 30,835 502 31,443
Grade C : EM 5 81,131 2,009 83,145
Grade D : Substandard - 4,403 7,059 11,462
Grade E : Doubtful - - 5,578 5,578
Grade F : Loss - - 3,882 3,882
1,733,956 116,369 19,030 1,869,355
ECL allowance ( 7,513) ( 17,205) ( 13,237 ) ( 37,955)

Carrying amount P 1,726,443 P 99,164 P 5,793 P 1,831,400

Receivables from customers - consumer

Grades AAA to B : Current P 473,747 P - P 160 P 473,907
Grade B- : Watchlisted 9 181 62 252
Grade C : EM - 1,506 107 1,613
Grade D : Substandard - 1,356 8,078 9,434
Grade E : Doubtful - - 16,658 16,658
Grade F : Loss - - 28,974 28,974
473,756 3,043 54,039 530,838
ECL allowance ( 5,554) ( 504) ( 21,246 ) ( 27,304)

Carrying amount P 468,202 P 2,539 P 32,793 P 503,534

Other receivables
Grades AAA to B : Current P 114,790 P 22 P 238 P 115,050
Grade C : EM - 41 - 41
Grade D : Substandard 503 407 258 1,168
Grade E : Doubtful 16 - 249 265
Grade F : Loss - - 1,929 1,929
115,309 470 2,674 118,453
ECL allowance ( 79) ( 77) ( 2,328 ) ( 2,484)

Carrying amount P 115,230 P 393 P 346 P 115,969

 - 65 -

BDO Unibank Group

2021
Stage 1 Stage 2 Stage 3 Total

Debt investment securities at

amortized cost
Grades AAA to B : Current P 397,595 P - P - P 397,595
Grade E : Doubtful - - 1,146 1,146
Grade F : Loss - - 264 264
397,595 - 1,410 399,005
ECL allowance ( 61) - ( 1,410) ( 1,471)

Carrying amount P 397,534 P - P - P 397,534

Debt investment securities at FVOCI

Grades AAA to B : Current P 165,461 P - P - P 165,461

Loan commitments and other

contingent accounts
Grades AAA to B : Current P 112,403 P - P - P 112,403
Grade B- : Watchlisted - 461 - 461
Grade C : EM - 42 - 42
112,403 503 - 112,906
ECL allowance ( 289) - - ( 289)

Carrying amount P 112,114 P 503 P - P 112,617

2020
Stage 1 Stage 2 Stage 3 Total
Receivables from customers - corporate
Grades AAA to B : Current P 1,557,559 P - P - P 1,557,559
Grade B- : Watchlisted 38 63,088 1,420 64,546
Grade C : EM 99 95,710 2,611 98,420
Grade D : Substandard - 4,414 1,435 5,849
Grade E : Doubtful - - 4,769 4,769
Grade F : Loss - - 4,795 4,795
1,557,696 163,212 15,030 1,735,938
ECL allowance ( 6,254) ( 11,699 ) ( 10,056 ) ( 28,009 )

Carrying amount P 1,551,442 P 151,513 P 4,974 P 1,707,929

Receivables from customers - consumer
Grades AAA to B : Current P 475,080 P - P - P 475,080
Grade B- : Watchlisted 9 406 118 533
Grade C : EM 1 3,681 128 3,810
Grade D : Substandard - 3,062 6,084 9,146
Grade E : Doubtful - - 22,699 22,699
Grade F : Loss - - 16,496 16,496
475,090 7,149 45,525 527,764
ECL allowance ( 7,795) ( 997 ) ( 19,619 ) ( 28,411 )

Carrying amount P 467,295 P 6,152 P 25,906 P 499,353

Other receivables
Grades AAA to B : Current P 93,453 P 37 P - P 93,490
Grade B- : Watchlisted - - 78 78
Grade C : EM 1 - - 1
Grade D : Substandard 501 414 355 1,270
Grade E : Doubtful 17 - 303 320
Grade F : Loss 51 - 1,920 1,971
94,023 451 2,656 97,130
ECL allowance ( 151 ) ( 18 ) ( 2,262 ) ( 2,431 )

Carrying amount P 93,872 P 433 P 394 P 94,699

 - 66 -

BDO Unibank Group

2020
Stage 1 Stage 2 Stage 3 Total

Debt investment securities at

amortized cost
Grades AAA to B : Current P 287,067 P - P - P 287,067
Grade E : Doubtful - - 1,079 1,079
Grade F : Loss - - 263 263
287,067 - 1,342 288,409
ECL allowance ( 248 ) - ( 1,342 ) ( 1,590 )

Carrying amount P 286,819 P - P - P 286,819

Debt investment securities at FVOCI

Grades AAA to B : Current P 174,559 P - P - P 174,559

Loan commitments and other

contingent accounts
Grades AAA to B : Current P 96,509 P - P - P 96,509
Grade B- : Watchlisted - 145 - 145
Grade E : Doubtful - - 16 16
96,509 145 16 96,670
ECL allowance ( 314 ) ( 3) - ( 317 )

Carrying amount P 96,195 P 142 P 16 P 96,353

The table below sets out the credit quality of trading debt securities of the BDO Unibank
Group measured at FVTPL (see Note 10.1).

2021 2020

Grade:
AAA P 4,449 P 4,030
AA+ to AA 330 107
A+ to A- 371 706
BBB+ to BBB- 4,440 4,152
BB+ to BB- 516 185

P 10,106 P 9,180

The table below shows an analysis of counterparty credit exposures arising from derivative
transactions of the BDO Unibank Group. Outstanding derivative exposures to counterparties
are generally to investment grade counterparty banks. Derivative transactions with non-bank
counterparties are on a fully secured basis.
Over-the-counter
Central Other Bilateral
Total Exchange-traded Counterparties Collateralized
Notional Fair Notional Fair Notional Fair Notional Fair
Amount Value Amount Value Amount Value Amount Value
2021
Derivative assets P 190,129 P 6,232 P 131 P 1 P 163,556 P 2,468 P 26,442 P 3,763
Derivative liabilities 201,482 5,742 1,792 - 171,809 2,462 27,881 3,280

2020
Derivative assets P 169,313 P 4,468 P 186 P - P 143,909 P 1,769 P 25,218 P 2,699
Derivative liabilities 177,735 4,129 186 - 154,158 2,001 23,391 2,128

As of December 31, 2021 and 2020, the BDO Unibank Group held Cash and Other Cash Items,
Due from Other Banks and Due from BSP totaling to P444,103 and P448,776, respectively.
The financial assets are held with the BSP and financial institution counterparties that are rated
at least BBB to AAA+, based on external rating agencies.
 - 67 -

Parent Bank

2021
Stage 1 Stage 2 Stage 3 Total

Receivables from customers - corporate

Grades AAA to B : Current P 1,728,038 P - P - P 1,728,038
Grade B- : Watchlisted - 30,830 502 31,332
Grade C : EM - 81,131 2,009 83,140
Grade D : Substandard - 4,403 7,059 11,462
Grade E : Doubtful - - 5,578 5,578
Grade F : Loss - - 3,878 3,878
1,728,038 116,364 19,026 1,863,428
ECL allowance ( 7,477) ( 17,204) ( 13,233 ) ( 37,914)

Carrying amount P 1,720,561 P 99,160 P 5,793 P 1,825,514

Receivables from customers - consumer

Grades AAA to B : Current P 438,721 P - P - P 438,721
Grade B- : Watchlisted - 181 62 243
Grade C : EM - 1,468 47 1,515
Grade D : Substandard - 1,094 8,013 9,107
Grade E : Doubtful - - 11,677 11,677
Grade F : Loss - - 26,860 26,860
438,721 2,743 46,659 488,123
ECL allowance ( 5,194) ( 414) ( 19,752 ) ( 25,360)

Carrying amount P 433,527 P 2,329 P 26,907 P 462,763

Other receivables
Grades AAA to B : Current P 110,798 P - P - P 110,798
Grade D : Substandard 502 406 251 1,159
Grade E : Doubtful - - 211 211
Grade F : Loss - - 1,856 1,856
111,300 406 2,318 114,024
ECL allowance ( 31) ( 77) ( 2,210 ) ( 2,318)

Carrying amount P 111,269 P 329 P 108 P 111,706

Debt investment securities at

amortized cost
Grades AAA to B : Current P 377,427 P - P - P 377,427
Grade E : Doubtful - - 1,146 1,146
Grade F : Loss - - 264 264
377,427 - 1,410 378,837
ECL allowance ( 45) - ( 1,410 ) ( 1,455)

Carrying amount P 377,382 P - P - P 377,382

Debt investment securities at FVOCI

Grades AAA to B : Current P 114,095 P - P - P 114,095

Loan commitments and other

contingent accounts
Grades AAA to B : Current P 112,403 P - P - P 112,403
Grade B- : Watchlisted - 461 - 461
Grade C : EM - 42 - 42
112,403 503 - 112,906
ECL allowance ( 289) - - ( 289)

Carrying amount P 112,114 P 503 P - P 112,617

 - 68 -

Parent Bank
2020
Stage 1 Stage 2 Stage 3 Total

Receivables from customers - corporate

Grades AAA to B : Current P 1,554,068 P - P - P 1,554,068
Grade B- : Watchlisted - 62,906 1,419 64,325
Grade C : EM - 95,710 2,611 98,321
Grade D : Substandard - 4,414 1,435 5,849
Grade E : Doubtful - - 4,769 4,769
Grade F : Loss - - 4,793 4,793
1,554,068 163,030 15,027 1,732,125
ECL allowance ( 6,200 ) ( 11,699 ) ( 10,053 ) ( 27,952 )

Carrying amount P 1,547,868 P 151,331 P 4,974 P 1,704,173

Receivables from customers - consumer

Grades AAA to B : Current P 446,247 P - P - P 446,247
Grade B- : Watchlisted - 406 4 410
Grade C : EM - 3,063 58 3,121
Grade D : Substandard - 1,121 5,714 6,835
Grade E : Doubtful - - 21,525 21,525
Grade F : Loss - - 14,232 14,232
446,247 4,590 41,533 492,370
ECL allowance ( 7,558 ) ( 671 ) ( 17,808 ) ( 26,037 )

Carrying amount P 438,689 P 3,919 P 23,725 P 466,333

Other receivables
Grades AAA to B : Current P 88,062 P - P - P 88,062
Grade D : Substandard 494 413 352 1,259
Grade E : Doubtful - - 291 291
Grade F : Loss - - 1,853 1,853
88,556 413 2,496 91,465
ECL allowance ( 62 ) ( 19 ) ( 2,204 ) ( 2,285 )

Carrying amount P 88,494 P 394 P 292 P 89,180

Debt investment securities at

amortized cost
Grades AAA to B : Current P 267,901 P - P - P 267,901
Grade E : Doubtful - - 1,079 1,079
Grade F : Loss - - 263 263
267,901 - 1,342 269,243
ECL allowance ( 229 ) - ( 1,342 ) ( 1,571 )

Carrying amount P 267,672 P - P - P 267,672

Debt investment securities at FVOCI

Grades AAA to B : Current P 121,848 P - P - P 121,848

Loan commitments and other

contingent accounts
Grades AAA to B : Current P 96,509 P - P - P 96,509
Grade B- : Watchlisted - 145 - 145
Grade E : Doubtful - - 16 16
96,509 145 16 96,670
ECL allowance ( 314 ) ( 3) - ( 317 )

Carrying amount P 96,195 P 142 P 16 P 96,353

 - 69 -

The table below sets out the credit quality of trading debt securities of the Parent Bank
measured at FVTPL (see Note 10.1).
2021 2020
Grade:
AAA P 1,756 P 1,707
AA+ to AA 5 2
BBB+ to BBB- 169 1,327
BB+ to BB- 216 56
P 2,146 P 3,092

The table below shows an analysis of counterparty credit exposures arising from derivative
transactions. Derivative transactions of the Parent Bank are generally fully collateralized by cash.
Over-the-counter
Central Other Bilateral
Total Exchange-traded Counterparties Collateralized
Notional Fair Notional Fair Notional Fair Notional Fair
Amount Value Amount Value Amount Value Amount Value

2021
Derivative assets P 163,687 P 2,469 P 131 P - P 163,556 P 2,469 P - P -
Derivative liabilities 171,940 2,462 131 - 171,809 2,462 - -

2020
Derivative assets P 144,095 P 1,769 P 186 P - P 143,909 P 1,769 P - P -
Derivative liabilities 154,345 2,001 186 - 154,159 2,001 - -

As of December 31, 2021 and 2020, the Parent Bank held Cash and Other Cash Items, Due
from Other Banks and Due from BSP totaling to P433,449 and P440,661, respectively. The
financial assets are held with the BSP and financial institution counterparties that are rated at
least BBB to AAA+, based on external rating agencies.
 - 70 -

4.3.3 Concentrations of Credit Risk

The BDO Unibank Group and the Parent Bank monitor concentrations of credit risk by
sector and by geographic location. An analysis of concentrations of credit risk
(gross of allowance) at the reporting date is shown below and in the succeeding page.
BDO Unibank Group

2021 2020
Receivables Trading and Receivables Trading and
Cash and Cash from Investment Cash and Cash from Investment
Equivalents* Customers** Securities Equivalents* Customers** Securities

Concentration by sector:
Financial and
insurance activities P 547,827 P 397,823 P 438,014 P 531,246 P 335,487 P 355,937
Activities of private
household as
employers and
undifferentiated goods
and services and
producing activities
of households
for own use - 356,129 - - 315,727 -
Real estate activities - 307,048 21,656 9 308,681 20,856
Wholesale and retail
trade - 282,446 953 - 271,485 863
Electricity, gas, steam
and air-conditioning
supply - 282,036 23,345 4 265,210 24,195
Manufacturing - 206,445 14,198 - 195,586 12,482
Transportation and
storage - 88,043 4,190 1 92,578 4,411
Arts, entertainment and
recreation - 77,010 715 - 77,734 -
Construction - 68,951 102 - 69,067 1,050
Information and
communication - 42,845 5,962 - 34,477 2,306
Accommodation and
food service activities - 39,937 - - 39,699 4,097
Education - 37,199 - - 32,296 -
Human health and social
work activities - 30,653 901 - 29,859 853
Water supply, sewerage
waste management and
remediation activities - 26,912 148 - 24,017 -
Agriculture, forestry and
fishing - 15,266 - - 15,011 -
Mining and quarrying - 10,175 1,279 - 16,172 1,089
Professional, scientific
and technical services - 9,642 975 - 10,255 946
Administrative and
support services - 7,592 1,262 - 8,237 -
Public administrative and
defense; compulsory
social security - 693 2,629 - 723 2,524
Activities of extra-territorial
and organizations and
bodies - - - - 5 -
Other service activities 54 113,348 64,475 122 121,396 44,843

P 547,881 P 2,400,193 P 580,804 P 531,382 P 2,263,702 P 476,452

Concentration by location:
Philippines P 400,581 P 2,261,065 P 486,987 P 409,805 P 2,137,037 P 381,831
Foreign countries 147,300 139,128 93,817 121,577 126,665 94,621

P 547,881 P 2,400,193 P 580,804 P 531,382 P 2,263,702 P 476,452

* Cash and cash equivalents include cash and other cash items, due from BSP and other banks, reverse repurchase agreements, FCNC, certain interbank loans receivables
and investment securities at amortized cost (see Note 2.5).
**Receivables from customers are reported as gross of allowance but net of unearned interests or discounts.
 - 71 -

Parent Bank

2021 2020
Receivables Trading and Receivables Trading and
Cash and Cash from Investment Cash and Cash from Investment
Equivalents* Customers** Securities Equivalents* Customers** Securities

Concentration by sector:
Financial and
insurance activities P 535,932 P 397,733 P 414,478 P 520,663 P 334,720 P 320,309
Electricity, gas, steam and
air-conditioning supply - 281,990 21,731 4 265,067 22,842
Real estate activities - 308,053 16,953 4 310,133 15,245
Transportation and
storage - 88,607 3,630 1 93,701 3,694
Wholesale and retail
traded - 278,173 953 - 268,590 863
Activities of private
household as
employers and
undifferentiated goods
and services and
producing activities
of households
for own use - 347,713 - - 307,500 -
Manufacturing - 205,679 12,891 - 195,035 10,855
Arts, entertainment and
recreation - 76,004 715 - 76,699 -
Construction - 68,108 102 - 68,752 1,050
Accommodation and
food service activities - 39,688 - - 39,484 4,097
Information and
communication - 42,634 3,802 - 34,276 324
Human health and social
work activities - 30,392 901 - 29,693 853
Water supply, sewerage
waste management and
remediation activities - 26,870 148 - 24,014 -
Mining and quarrying - 10,122 1,279 - 16,150 1,089
Agriculture, forestry and
fishing - 14,600 - - 14,368 -
Professional, scientific
and technical services - 9,601 975 - 10,241 946
Administrative and
support services - 7,430 1,262 - 8,182 -
Education - 4,373 - - 5,043 -
Public administrative and
defense; compulsory
social security - 693 2,629 - 723 2,524
Activities of
extra-territorial and
organizations
bodies - - - - 5 -
Other service activities - 113,088 15,098 - 122,119 11,097

P 535,932 P 2,351,551 P 497,547 P 520,672 P 2,224,495 P 395,788

Concentration by location
Philippines P 391,881 P 2,212,423 P 410,296 P 400,914 P 2,098,414 P 310,300
Foreign countries 144,051 139,128 87,251 119,758 126,081 85,488

P 535,932 P 2,351,551 P 497,547 P 520,672 P 2,224,495 P 395,788

* Cash and cash equivalents include cash and other cash items, due from BSP and other banks, reverse repurchase agreements, FCNC, certain interbank loans receivables
and investment securities at amortized cost (see Note 2.5).
**Receivables from customers are reported as gross of allowance but net of unearned interests or discounts.
 - 72 -

4.3.4 Collateral Held as Security and Other Credit Enhancements

BDO Unibank Group and the Parent Bank hold collateral against credit exposures from
customers in the form of mortgage interests over property, other registered securities over
assets, financial collateral including deposits, debt and equity securities, and guarantees.
Estimates of fair value are based on the value of collateral assessed at the time of borrowing
and are updated periodically. Collateral generally is not held over from due from other banks,
interbank loans and investment securities, except when securities are held as part of reverse
repurchase and securities borrowing activity.

There is no significant change on the quality of the collateral and other security enhancements
held against the credit exposures except for the fair value of the collaterals driven by the change
in market conditions.

Estimate of the fair value of collateral and other security enhancements held against the
following credit exposures as of December 31 follows:

BDO Unibank Group Parent Bank

2021 2020 2021 2020

Receivable from customers

corporate:
Property P 643,403 P 575,492 P 632,969 P 571,158
Equity securities 119,361 115,910 117,459 115,741
Hold-out deposits 31,257 104,036 30,986 103,941
Debt securities 2,298 2,559 1,252 2,474
Others 105,236 237,625 105,024 229,483

901,555 1,035,622 887,690 1,022,797

Receivable from customers

consumer:
Property 558,874 515,491 545,335 515,491
Hold-out deposits 52 2,864 52 2,844
Debt securities 989 423 989 128
Equity securities 146 805 146 100
Others 212,603 218,756 202,216 218,590

772,664 738,339 748,738 737,153

Other receivables:
Property 1,832 1,696 1,668 1,696
Others 17,095 16,729 15,800 14,135

18,927 18,425 17,468 15,831

P 1,693,146 P 1,792,386 P 1,653,896 P 1,775,781

As of December 31, 2021 and 2020, no collateral is held for due from other banks and trading
and investment securities.
 - 73 -

The BDO Unibank Group and the Parent Bank have recognized certain properties arising from
foreclosures in settlement of loan account amounting to P13,523 and P13,479, respectively, in
2021 and P13,757 and P13,743, respectively, in 2020 (see Note 14 and 15.5).

is normally through sale of these assets after foreclosure proceedings have taken place.

The general creditworthiness of a corporate and individual customer tends to be the most
relevant indicator of credit quality of a loan extended to it (see Note 4.3.2). However,
collateral provides additional security and the BDO Unibank Group generally requests that
corporate and individual borrowers provide it. The BDO Unibank Group may take collateral
in the form of a first charge over real estate, floating charges over all corporate and individual
assets and other liens and guarantees.
While the BDO Unibank Group is focused on corporate and individual
creditworthiness, it continuously and regularly updates the valuation of collateral held against
all loans to corporate and individual customers. Most frequent updating, however, is required
when the loan is put on a watch list and the loan is monitored more closely. The same applies
to credit-impaired loans, as the BDO Unibank Group obtains appraisals or valuation of
collateral to provide input into determining the management credit risk actions.
(a) Receivable from Customers and Other Receivables
The net carrying amount of credit-impaired (loans under Stages 2 and 3) receivables and the
value of identifiable collateral held against those loans and advances as of December 31, 2021
and 2020 are as follows:

BDO Unibank Group

2021 2020
Net Carrying Identifiable Net Carrying Identifiable
Amount Collateral Amount Collateral
Receivable from customers:
Corporate P 104,957 P 63,098 P 156,487 P 103,993
Consumer 35,332 74,986 32,058 65,409
Other receivables 739 2,895 827 3,106

Parent Bank
2021 2020
Net Carrying Identifiable Net Carrying Identifiable
Amount Collateral Amount Collateral
Receivable from customers:
Corporate P 104,953 P 63,083 P 156,305 P 103,810
Consumer 29,236 69,602 27,644 64,668
Other receivables 437 2,438 686 2,910

For each loan, the value of disclosed collateral (mainly collateral properties) is capped at the
nominal amount of the loan that it is held against.
 - 74 -

(b) Debt Investment Securities

The BDO Unibank Group and the Parent Bank invest in non-collateralized debt securities
issued by various government and corporate entities. The maximum exposure to credit
risk of debt investment securities is equivalent to their carrying amount as of
December 31, 2021 and December 31, 2020 as shown below:

BDO Unibank Group Parent Bank

2021 2020 2021 2020

Debt securities:
At amortized cost P 397,534 P 286,819 P 377,382 P 267,672
At FVOCI 165,461 174,559 114,095 121,848
At FVTPL 10,106 9,180 2,146 3,092

P 573,101 P 470,558 P 493,623 P 392,612

4.3.5 Amounts Arising from Expected Credit Losses

At each reporting date, BDO Unibank Group assesses whether financial assets carried at
amortized cost and debt financial assets carried at FVOCI are credit-impaired (referred to as
Stages 2 and 3 financial assets). A financial asset is credit-impaired when one or more events
that have a detrimental impact on the estimated future cash flows of the financial asset have
occurred.

The assessment of credit risk of a portfolio of assets entails further estimations as to the
likelihood of defaults occurring, of the associated loss ratios and of default correlations
between counterparties. The BDO Unibank Group measures credit risk using PD, LGD
and EAD.

(a) Significant Increase in Credit Risk (SICR)

- BDO Unibank
Group based on changes in credit quality since initial recognition of the financial asset. A
financial asset that is not credit-
credit risk continuously monitored by the BDO Unibank Group as its ECL is measured at
an amount equal to the portion of lifetime ECL that results from possible default events
within the next 12 months. If an SICR since initial recognition is identified, the classification
t yet deemed to be credit-impaired. Such assessment is
based on the following criteria in determining whether there has been a significant increase
in credit risk: (i) qualitative indicators, such as net losses, intermittent delays in payment or
restructuring; and (ii) quantitative test based on movement in risk rating and PD. The
borrowers can be moved to Stage 1 upon completion of the seasoning period which shall
be 6 months of continuous payment with no incident of past due.

When determining whether the risk of default on a financial instrument has increased
significantly since initial recognition, the BDO Unibank Group considers reasonable and
supportable information that is relevant and available without undue cost or effort. This
includes both quantitative and qualitative information and analysis, based on the BDO
Unibank
forward-looking information (FLI).
 - 75 -

The objective of the assessment is to identify whether an SICR has occurred for an
exposure by comparing:

the remaining lifetime PD as at the reporting date; with

the remaining lifetime PD for this point in time that was estimated at the time of initial
recognition of the exposure (adjusted where relevant for changes in prepayment
expectations).

(i) Credit risk grading

The BDO Unibank Group allocates each exposure to a credit risk grade based on a
variety of data that is determined to be predictive of the risk of default and applying
experienced credit judgment. Credit risk grades are defined using qualitative and
quantitative factors that are indicative of risk of default. These factors vary depending
on the nature of the exposure and the type of borrower.

The credit grades are defined and calibrated such that the risk of default increases
exponentially at each higher risk grade so, for example, the difference PD between an
AAA and AA rating grade is lower than the difference in the PD between a B and
B- rating grade.

(ii) Generating the term structure of PD

Credit risk grades are a primary input into the determination of the term structure of
PD for exposures. The BDO Unibank Group collects performance and default
information about its credit risk exposures analyzed by jurisdiction or region and by
type of product and borrower as well as by credit risk grading. For some portfolios,
information from external credit reference agencies is also used.

The BDO Unibank Group employs statistical models to analyze the data collected and
generates the term structure of PD estimates.

(iii) Determining whether credit risk has significantly increased

The BDO Unibank Group assesses whether credit risk has increased significantly since
initial recognition at each reporting date. Determining whether an increase in credit
risk is significant depends on the characteristics of the financial instrument and the
borrower. What is considered significant varies across financial assets of the BDO
Unibank Group.

The credit risk may also be deemed to have increased significantly since initial
recognition based on qualitative factors linked to the BDO Unibank
risk management processes that may not otherwise be fully reflected in its quantitative
analysis on a timely basis. This will be the case for exposures that meet certain
heightened risk criteria, such as net loss, significant drop in risk ratings and intermittent
delays in payments.

If there is evidence that there is no longer a significant increase in credit risk relative to
initial recognition, then the loss allowance on an instrument returns to being measured
as 12-month ECL.
 - 76 -

In 2021 and 2020, the assumptions and estimation technique have been reviewed to
consider the continuing impact of the COVID-19 pandemic. In this regard, the BDO
Unibank Group and the Parent Bank performed comprehensive review of the financial
assets, particularly for loan accounts to assess vulnerability arising from current
economic condition, which resulted in the transfer of the classification of some loans
from Stage 1 to either Stage 2 or 3 (see Note 35).

(b) Definition of Default

The BDO Unibank Group considers a financial asset to be in default when:

the borrower is unlikely to pay its credit obligations to the BDO Unibank Group in
full, without recourse by the BDO Unibank Group to actions such as realizing security
(if any is held);

the borrower is more than 90 days past due on any material credit obligation to the
BDO Unibank Group; or,

it is becoming probable that the borrower will restructure the asset as a result of
redit obligations.

In assessing whether a borrower is in default, the BDO Unibank Group considers

indicators that are qualitative (e.g., breaches of covenant) and, quantitative (overdue or
non-payment).

Inputs into the assessment of whether a financial instrument is in default as well as their
significance may vary over time to reflect changes in circumstances.

These criteria have been applied to all financial instruments held by the BDO Unibank Group
and are consistent with the definition of default used for internal credit risk management
purposes. Such definition has been consistently applied in determining PD, EAD, and LGD
throughout the ECL calculations of the BDO Unibank Group.

An instrument is considered to have cured when it no longer meets any of the default criteria
for a consecutive period of six months. The cure period sets the tolerance period wherein the
borrowers are allowed to update the payments in compliance with the regulatory requirements
on transfer between stages.

(c) Measurement of ECL

The key inputs into the measurement of ECL are the term structure of PD, LGD and
EAD.

ECL for exposures in Stage 1 is calculated by multiplying the 12-month PD by LGD

and EAD. Lifetime ECL is calculated by multiplying the lifetime PD by LGD and
EAD.
 - 77 -

LGD is the magnitude of the likely loss if there is a default. The BDO Unibank Group
estimates LGD parameters based on the history of recovery rates of claims against
defaulted counterparties. The LGD models consider the structure, collateral, seniority of
the claim, counterparty industry and recovery costs of any collateral that is integral to the
financial asset. For loans secured by retail property, loan-to-value (LTV) ratios are a key
parameter in determining LGD. LGD estimates are recalibrated for different economic
scenarios and, for real estate lending, to reflect possible changes in property prices. They
are calculated on a discounted cash flow basis using the effective interest rate as the
discounting factor.

EAD represents the expected exposure in the event of a default. The BDO Unibank
Group derives the EAD from the current exposure to the counterparty and potential
changes to the current amount allowed under the contract and arising from amortization.
The EAD of a financial asset is its gross carrying amount at the time of default. For
lending commitments, the EADs are potential future amounts that may be drawn under
the contract, which are estimated based on historical observations and forward-looking
forecasts. For financial guarantees, the EAD represents the amount of the guaranteed
exposure when the financial guarantee becomes payable. For some financial assets,
EAD is determined by modelling the range of possible exposure outcomes at various
points in time using scenario and statistical techniques.

As described in the previous page, and subject to using a maximum of a 12-month PD

for Stage 1 financial assets, the BDO Unibank Group measures ECL considering the
risk of default over the maximum contractual period (including any borrower
extension options) over which it is exposed to credit risk, even if, for credit risk
management purposes, the BDO Unibank Group considers a longer period. The
maximum contractual period extends to the date at which the BDO Unibank Group
has the right to require repayment of an advance or terminate a loan commitment or
guarantee.

For portfolios in respect of which the BDO Unibank Group has limited historical
data, external benchmark information (e.g., PD from external credit rating agencies,
Basel LGD) issued are used to supplement the internally available data. The portfolios
for which external benchmark information represents a significant input into
measurement of ECL include exposures to foreign borrowers and low default
borrower segments.
There have been no significant changes in the estimation techniques or significant
assumptions made by the BDO Unibank Group in 2021.

(d) Collective Basis of Measurement of ECL

Where modelling of a parameter is carried out on a collective basis, the financial

instruments are grouped on the basis of shared risk characteristics such as:

instrument type; date of initial recognition;

credit risk gradings; remaining term to maturity;
collateral type; industry; and,
LTV ratio for retail geographic location of the borrower.
mortgages;
 - 78 -

The groupings are subject to regular review to ensure that exposures within a particular
group remain appropriately homogeneous.

order to ensure that credit exposures within a particular group remain appropriately
homogenous.

(e) Forward-looking Information (FLI)

The BDO Unibank Group incorporates FLI into both the assessment of whether the
credit risk of an instrument has increased significantly since its initial recognition and the
measurement of ECL.

The BDO Unibank Group has identified and documented key drivers of credit risk and
credit losses for each portfolio of financial instruments and, using an analysis of historical
data, has estimated relationships between macro-economic variables and credit risk and
credit losses.

The relevant macro-economic variables for selection generally include, but are not limited
to, Gross Domestic Product (GDP) growth rate, unemployment rate, inflation rate, foreign
exchange rates, stock market index, oil prices and interest rates.

Predicted relationships between the key macro-economic indicators and default and loss
rates on various portfolios of financial assets have been developed based on analyzing
historical data over the past 10 to 15 years.

The significance of the selected macro-economic variables as predictors of default may

change over time as historical information is added. As such, the generated
macro-economic models are updated at least on an annual basis.

As with any economic forecasts, the projections and likelihoods of occurrence are
subject to a high degree of inherent uncertainty, and therefore, the actual outcomes may be
significantly different from the projections. The BDO Unibank Group considers these
forecasts to represent its best estimate of the possible outcomes and has analyzed the
non-linearities and asymmetries within the BDO Unibank Group different product types to
establish that the chosen scenarios are appropriately representative of the range of possible
scenarios.

Management has also considered other FLIs not incorporated within the above economic
scenarios, such as any regulatory, legislative, or political changes, but are not deemed to have
a significant impact on the calculation of ECL. Management reviews and monitors the
appropriateness of FLIs at least annually.

(f) Modified Financial Assets

The contractual terms of a loan may be modified for a number of reasons, including
changing market conditions, customer retention and other factors not related to a current
or potential credit deterioration of the customer.
 - 79 -

When the terms of a financial asset are modified and the modification does not result in
k has increased
significantly reflects comparison of:

its remaining lifetime PD at the reporting date based on the modified terms; with

the remaining lifetime PD estimated based on data on initial recognition and the
original contractual terms.

When modification results in derecognition, a new loan is recognized and allocated to

Stage 1 (assuming it is not credit-impaired at that time).

The BDO Unibank Group renegotiates loans of customers in financial difficulties

granted on a selective basis if the debtor is currently in default on its debt but the debtor
made all reasonable efforts to pay under the original contractual terms and the debtor is
expected to be able to meet the revised terms.

The revised terms usually include extending the maturity, deferment of principal payment,
changing the timing of interest payments and amending the terms of loan covenants for
such loans as consumer and corporate loans and credit card receivables. All proposals for
loan restructuring are for approval by the BDO Unibank Group s Executive Committee.

the estimate of credit loss will reflect the probability to collect interest and principal.
ment
performance against the modified contractual terms and considers various behavioral
indicators.

Generally, restructuring is a qualitative indicator of an SICR and an expectation of

forbearance may constitute evidence that an exposure is credit-impaired (see Note 4.3.2).
A customer needs to demonstrate consistently good payment behavior over a period of
time (in accordance with the new terms for six consecutive months or more) before the
exposure is no longer considered to be credit-impaired/in default or the PD is considered
to have decreased such that the loss allowance reverts to being measured at an amount
equal to Stage 1.

In response to the unprecedented impact of the COVID-19 pandemic, the BDO Unibank
Group and the Parent Bank granted to its customers the mandatory reliefs provided by the
government through Bayanihan to Heal as One Act (Bayanihan I) and Bayanihan to Recover as
Once Act (Bayanihan II). In addition, it entered into voluntary renegotiations of terms of
loans of some other customers with a view of maximizing recovery of the contractual
amount of obligation. These relief measures were granted to eligible borrowers to allow
them to get back into the habit of paying loans which includes payment relief including
extension of contractual terms, principal and interest relief, as well as extension of balloon
payment terms (see Note 35).

Financial reliefs provided by the BDO Unibank Group and the Parent Bank and mandated
by the government were assessed to be non-substantial modification and has not resulted
in material modification loss as the present value of the original cash flows and the present
value of the revised cash flows using the original effective interest rate were substantially
the same.
 - 80 -

The following tables provide a summary of the outstanding principal balance net of
allowance for impairment of modified loans provided by the BDO Unibank Group and
the Parent Bank as of December 31, 2021 and 2020:

BDO Unibank Group

2021 2020

Stage 1 (Performing)
Corporate P 68,893 P 187,822
Consumer 121,081 144,598
189,974 332,420
Allowance for impairment ( 1,404) ( 2,080)

P 188,570 P 330,340

Stage 2 (Underperforming)
Corporate P 98,434 P 83,289
Consumer 1,075 1,448
99,509 84,737
Allowance for impairment ( 15,798) ( 8,645)

P 83,711 P 76,092

Stage 3 (Non-performing)
Corporate P 5,673 P 877
Consumer 7,542 7,933
13,215 8,810
Allowance for impairment ( 4,709) ( 2,740)

P 8,506 P 6,070

Parent Bank
2021 2020

Stage 1 (Performing)
Corporate P 68,893 P 187,822
Consumer 120,081 143,057
188,974 330,879
Allowance for impairment ( 1,367) ( 2,057)

P 187,607 P 328,822

Stage 2 (Underperforming)
Corporate P 98,434 P 83,289
Consumer 1,054 1,348
99,488 84,637
Allowance for impairment ( 15,793) ( 8,635)

P 83,695 P 76,002

Stage 3 (Non-performing)
Corporate P 5,673 P 877
Consumer 7,006 7,389
12,679 8,266
Allowance for impairment ( 4,521) ( 2,545)

P 8,158 P 5,721
 - 81 -

(g) Write-offs
The BDO Unibank Group writes off financial assets, in whole or in part, when it has
exhausted all practical recovery efforts and has concluded that there is no reasonable
expectation of recovery of the financial asset. Indicators that there is no reasonable
expectation of recovery include cessation of enforcement activity and, where the BDO
nd the value of
the collateral is less than the outstanding contractual amounts of the financial assets to
be written-off. The BDO Unibank Group and the Parent Bank have still, however,
enforceable right to receive payment even if the financial assets have been written off
except in certain cases.

The BDO Unibank Group and the Parent Bank had written off certain accounts from
which it no longer have an enforceable right to receive payment amounting to P1,054 and
P1,015 respectively, in 2021, and P654 and P533, respectively, in 2020.

(h) Credit risk exposure

The BDO Unibank Group and the Parent

to the carrying value of its financial assets as shown below and in the succeeding page.

BDO Unibank Group

Gross Fair Financial

Maximum Value of Net Effect of
Exposure Collaterals Exposure Collaterals

2021

Loans and discounts:

Corporate P 1,869,355 P 901,555 P 967,800 P 901,555
Consumer 530,838 772,664 - 530,838
Reverse repurchase
agreements 17,095 17,095 - -
Sales contracts receivables 1,283 1,832 - 1,283

P 2,418,571 P 1,693,146 P 967,800 P 1,433,676

2020

Loans and discounts:

Corporate P 1,735,938 P 1,035,622 P 700,316 P 1,035,622
Consumer 527,764 738,339 - 527,764
Reverse repurchase
agreements 16,729 16,729 - -
Sales contracts receivables 1,016 1,696 - 1,016

P 2,281,447 P 1,792,386 P 700,316 P 1,564.402

 - 82 -

Parent Bank

Gross Fair Financial

Maximum Value of Net Effect of
Exposure Collaterals Exposure Collaterals

2021

Loans and discounts:

Corporate P 1,863,428 P 887,690 P 975,738 P 887,690
Consumer 488,123 748,738 - 488,123
Reverse repurchase
agreements 15,800 15,800 - -
Sales contracts receivables 1,226 1,668 - 1,226

P 2,368,577 P 1,653,896 P 975,738 P 1,377,039

2020

Loans and discounts:

Corporate P 1,732,125 P 1,022,797 P 709,328 P 1,022,797
Consumer 492,370 737,153 - 492,370
Reverse Repurchase
Agreements 14,135 14,135 - -
Sales contracts receivables 977 1,696 - 977

P 2,239,607 P 1,775,781 P 709,328 P 1,516,144

An analysis of the maximum credit risk exposure relating to Stage 3 financial assets as of
December 31, 2021 and 2020 is shown below and in the succeeding page.

BDO Unibank Group

Gross Fair Financial

Maximum Value of Net Effect of
Exposure Collaterals Exposure Collaterals

2021

Loans and discounts:

Corporate P 19,030 P 6,455 P 12,575 P 6,455
Consumer 54,039 68,085 - 54,039
Sales contracts receivables 214 304 - 214

P 73,283 P 74,844 P 12,575 P 60,708

2020

Loans and discounts:

Corporate P 15,030 P 6,050 P 8,980 P 6,050
Consumer 45,525 60,572 - 45,525
Sales contracts receivables 233 375 - 233

P 60,788 P 66,997 P 8,980 P 51,808

 - 83 -

Parent Bank

Gross Fair Financial

Maximum Value of Net Effect of
Exposure Collaterals Exposure Collaterals

2021

Loans and discounts:

Corporate P 19,026 P 6,455 P 12,571 P 6,455
Consumer 46,659 66,296 - 46,659
Sales contracts receivables 212 302 - 212

P 65,897 P 73,053 P 12,571 P 53,326

2020

Loans and discounts:

Corporate P 15,027 P 6,049 P 8,978 P 6,049
Consumer 41,533 58,390 - 41,533
Sales contracts receivables 206 347 - 206

P 56,766 P 64,786 P 8,978 P 47,788

The following table sets out the gross carrying amounts of the exposures to credit risk on
financial assets with low credit risk measured at amortized cost and debt securities at
FVOCI as of December 31:

BDO Unibank Group Parent Bank

Notes 2021 2020 2021 2020

Cash equivalents 8, 9 P 444,103 P 448,776 P 433,449 P 440,661

Debt securities:
At FVOCI 10.2 165,461 174,559 114,095 121,848
At amortized cost 10.3 399,005 288,409 378,837 269,243

P 564,466 P 462,968 P 492,932 P 391,091

Cash equivalents includes loans and amounts due from BSP and from other banks.
Debt securities includes government and corporate bonds. These are held by the BSP,
financial institutions and other counterparties that are reputable and with low credit risk;
hence, ECL is negligible.

(i) Loss allowance

In 2021 and 2020, the BDO Unibank Group and the Parent Bank performed recalibration
of its existing ECL model to incorporate in the most-recent default and recovery experience
of the BDO Unibank Group and the Parent Bank and developments in the macroeconomic
environment. Independent macroeconomic variables used to forecast the PD could either
be dictated by their statistical significance in the model or economic significance. Inputs are
updated to ensure that models are robust, predictive and reliable.
 - 84 -

The following tables show the reconciliation from the opening to the closing balance of
the loss allowance by class of financial instrument.

BDO Unibank Group

2021
Stage 1 Stage 2 Stage 3 Total

Receivables from customers

corporate
Balance at January 1 P 6,254 P 11,699 P 10,056 P 28,009
Transfers to:
Stage 1 414 ( 414) - -
Stage 2 218 ( 217) ( 1) -
Stage 3 ( 7) ( 17) 24 -
Net remeasurement of loss allowance ( 743) 6,206 1,645 7,108
New financial assets originated
or purchased 3,529 877 3,960 8,366
Derecognition of financial assets ( 2,227) ( 1,151) ( 1,352 ) ( 4,730)
Write-offs - - ( 1,256 ) ( 1,256)
Foreign exchange 75 222 161 458

Balance at December 31 P 7,513 P 17,205 P 13,237 P 37,955

Receivables from customers

consumer
Balance at January 1 P 7,795 P 997 P 19,619 P 28,411
Transfers to:
Stage 1 3,290 ( 630) ( 2,660 ) -
Stage 2 ( 210) 379 ( 169 ) -
Stage 3 ( 2,692) ( 393) 3,085 -
Net remeasurement of loss allowance ( 3,099) 160 10,152 7,213
New financial assets originated
or purchased 1,273 109 1,015 2,397
Derecognition of financial assets ( 805) ( 118) ( 2,234 ) ( 3,157)
Write-offs - - ( 7,575 ) ( 7,575)
Foreign exchange 2 - 13 15

Balance at December 31 P 5,554 P 504 P 21,246 P 27,304

Other receivables
Balance at January 1 P 151 P 18 P 2,262 P 2,431
Transfers to
Stage 1 13 ( 1) ( 12 ) -
Stage 2 1 ( 1) -
Stage 3 ( 6) - 6 -
Net remeasurement of loss allowance ( 80) 52 154 126
New financial assets originated
or purchased 22 18 527 567
Derecognition of financial assets ( 22) ( 11) ( 474 ) ( 507)
Write-offs - ( 135 ) ( 135)
Foreign exchange 1 - 1 2

Balance at December 31 P 79 P 77 P 2,328 P 2,484

Debt investment securities at

amortized cost
Balance at January 1 P 248 P - P 1,342 P 1,590
Net remeasurement of loss allowance ( 180) - - ( 180 )
New financial assets originated
or purchased 10 - - 10
Foreign exchange 5 - 68 73
Derecognition of financial assets ( 22 ) - - ( 22 )

Balance at December 31 P 61 P - P 1,410 P 1,471

Debt investment securities at FVOCI

Balance at January 1 P 137 P - P - P 137
Net remeasurement of loss allowance ( 75) - - ( 75 )
New financial assets originated
or purchased 12 - - 12
Derecognition of financial assets ( 24) - - ( 24 )

Balance at December 31 P 50 P - P - P 50
 - 85 -

BDO Unibank Group

2021
Stage 1 Stage 2 Stage 3 Total

Loan commitments and other

contingent accounts
Balance at January 1 P 314 P 3 P - P 317
Net remeasurement of loss allowance ( 29) - - ( 29)
New financial assets originated
or purchased 66 - - 66
Derecognition of financial assets ( 65) ( 3) - ( 68)
Foreign exchange 3 - - 3

Balance at December 31 P 289 P - P - P 289

2020
Stage 1 Stage 2 Stage 3 Total

Receivables from customers corporate

Balance at January 1 P 6,609 P 549 P 8,412 P 15,570
Transfers to:
Stage 1 65 ( 65 ) - -
Stage 2 ( 1,639 ) 1,639 - -
Stage 3 ( 32 ) ( 121 ) 153 -
Net remeasurement of loss allowance 220 8,429 1,212 9,861
New financial assets originated
or purchased 3,226 1,333 1,493 6,052
Derecognition of financial assets ( 2,166 ) ( 65 ) ( 999 ) ( 3,230 )
Foreign exchange ( 29 ) - ( 215 ) ( 244 )

Balance at December 31 P 6,254 P 11,699 P 10,056 P 28,009

Receivables from customers consumer

Balance at January 1 P 5,050 P 681 P 8,767 P 14,498
Transfers to:
Stage 1 462 ( 120 ) ( 342 ) -
Stage 2 ( 201 ) 249 ( 48 ) -
Stage 3 ( 1,407 ) ( 1,249 ) 2,656 -
Net remeasurement of loss allowance 3,060 1,446 10,616 15,122
New financial assets originated
or purchased 1,609 276 1,675 3,560
Derecognition of financial assets ( 774 ) ( 284 ) ( 1,199 ) ( 2,257 )
Write-offs - ( 2,497 ) ( 2,497 )
Foreign exchange ( 4) ( 2) ( 9) ( 15 )

Balance at December 31 P 7,795 P 997 P 19,619 P 28,411

Other receivables
Balance at January 1 P 116 P 269 P 2,213 P 2,598
Transfers to
Stage 1 41 - ( 41 ) -
Stage 2 1 ( 2) 1 -
Stage 3 ( 21 ) - 21 -
Net remeasurement of loss allowance ( 3) ( 249 ) 674 422
New financial assets originated
or purchased 37 10 523 570
Derecognition of financial assets ( 19 ) ( 10 ) ( 675 ) ( 704 )
Write-offs - - ( 452 ) ( 452 )
Foreign exchange ( 1) - ( 2) ( 3)

Balance at December 31 P 151 P 18 P 2,262 P 2,431

Debt investment securities at

amortized cost
Balance at January 1 P 151 P - P 1,402 P 1,553
Net remeasurement of loss allowance 90 - - 90
New financial assets originated
or purchased 42 - - 42
Foreign exchange ( 8) - ( 60) ( 68)
Derecognition of financial assets ( 27 ) - - ( 27)

Balance at December 31 P 248 P - P 1,342 P 1,590

 - 86 -

BDO Unibank Group

2020
Stage 1 Stage 2 Stage 3 Total
Debt investment securities at FVOCI
Balance at January 1 P 100 P - P - P 100
Net remeasurement of loss allowance 41 - - 41
New financial assets originated
or purchased 27 - - 27
Foreign exchange ( 1) - - ( 1)
Derecognition of financial assets ( 30 ) - - ( 30 )

Balance at December 31 P 137 P - P - P 137

Loan commitments and other

contingent accounts
Balance at January 1 P 114 P - P - P 114
Net remeasurement of loss allowance 21 1 - 22
New financial assets originated
or purchased 220 2 - 222
Derecognition of financial assets ( 39 ) - - ( 39 )
Foreign exchange ( 2) - - ( 2)

Balance at December 31 P 314 P 3 P - P 317

Parent Bank

2021
Stage 1 Stage 2 Stage 3 Total

Receivables from customers

corporate
Balance at January 1 P 6,200 P 11,699 P 10,053 P 27,952
Transfers to:
Stage 1 398 ( 398) - -
Stage 2 218 ( 217) ( 1) -
Stage 3 ( 7) ( 15) 22 -
Net remeasurement of loss allowance ( 709) 6,187 1,646 7,124
New financial assets originated
or purchased 3,515 877 3,959 8,351
Derecognition of financial assets ( 2,213) ( 1,151) ( 1,351 ) ( 4,715)
Write-offs - - ( 1,256 ) ( 1,256)
Foreign exchange 75 222 161 458

Balance at December 31 P 7,477 P 17,204 P 13,233 P 37,914

Receivables from customers

consumer
Balance at January 1 P 7,558 P 671 P 17,808 P 26,037
Transfers to:
Stage 1 2,832 ( 409) ( 2,423 ) -
Stage 2 ( 206) 370 ( 164 ) -
Stage 3 ( 2,663) ( 349) 3,012 -
Net remeasurement of loss allowance ( 2,599) 159 9,508 7,068
New financial assets originated
or purchased 1,033 58 797 1,888
Derecognition of financial assets ( 763) ( 86) ( 1,832 ) ( 2,681 )
Write-offs - - ( 6,967 ) ( 6,967)
Foreign exchange 2 - 13 15
Balance at December 31 P 5,194 P 414 P 19,752 P 25,360

Other receivables
Balance at January 1 P 62 P 19 P 2,204 P 2,285
Transfers to:
Stage 1 13 ( 1) ( 12 ) -
Stage 3 ( 1) - 1 -
Net remeasurement of loss allowance ( 44) 55 89 100
New financial assets originated
or purchased 21 15 520 556
Derecognition of financial assets ( 21) ( 11) ( 465 ) ( 497)
Write-offs - - ( 128 ) ( 128)
Foreign exchange 1 - 1 2

Balance at December 31 P 31 P 77 P 2,210 P 2,318

 - 87 -

Parent Bank

2021
Stage 1 Stage 2 Stage 3 Total

Debt investment securities at

amortized cost
Balance at January 1 P 229 P - P 1,342 P 1,571
Net remeasurement of loss allowance ( 175) - - ( 175 )
New financial assets originated
or purchased 5 - - 5
Foreign exchange 5 - 68 73
Derecognition of financial assets ( 19 ) - - ( 19)

Balance at December 31 P 45 P - P 1,410 P 1,455

Debt investment securities at FVOCI

Balance at January 1 P 108 P - P - P 108
Net remeasurement of loss allowance ( 63 ) - - ( 63 )
New financial assets originated
or purchased 8 - - 8
Derecognition of financial assets ( 16 ) - - ( 16)

Balance at December 31 P 37 P - P - P 37

Loan commitments and other

contingent accounts
Balance at January 1 P 314 P 3 P - P 317
Net remeasurement of loss allowance ( 29) - - ( 29)
New financial assets originated -
or purchased 66 - - 66
Derecognition of financial assets ( 65) ( 3) - ( 68)
Foreign exchange 3 - - 3

Balance at December 31 P 289 P - P - P 289

2020
Stage 1 Stage 2 Stage 3 Total

Receivables from customers

corporate
Balance at January 1 P 6,520 P 538 P 7,991 P 15,049
Transfers to:
Stage 1 46 ( 46 ) - -
Stage 2 ( 1,638 ) 1,638 - -
Stage 3 ( 26 ) ( 108 ) 134 -
Net remeasurement of loss allowance 219 8,405 961 9,585
New financial assets originated
or purchased 3,212 1,331 1,485 6,028
Derecognition of financial assets ( 2,104 ) ( 59 ) ( 303 ) ( 2,466 )
Write-offs - - - -
Foreign exchange ( 29 ) - ( 215 ) ( 244 )

Balance at December 31 P 6,200 P 11,699 P 10,053 P 27,952

Receivables from customers

consumer
Balance at January 1 P 4,549 P 541 P 7,243 P 12,333
Transfers to:
Stage 1 141 ( 61 ) ( 80 ) -
Stage 2 ( 139 ) 174 ( 35 ) -
Stage 3 ( 1,279 ) ( 335 ) 1,614 -
Net remeasurement of loss allowance 3,302 375 11,009 14,686
New financial assets originated
or purchased 1,410 116 1,172 2,698
Derecognition of financial assets ( 422 ) ( 137 ) ( 731 ) ( 1,290 )
Write-offs - - ( 2,375 ) ( 2,375 )
Foreign exchange ( 4) ( 2) ( 9) ( 15 )

Balance at December 31 P 7,558 P 671 P 17,808 P 26,037

 - 88 -

Parent Bank
2020
Stage 1 Stage 2 Stage 3 Total

Other receivables
Balance at January 1 P 46 P 269 P 2,136 P 2,451
Transfers to:
Stage 1 ( 2) - 2 -
Stage 2 1 ( 2) 1 -
Stage 3 5 1 ( 6) -
Net remeasurement of loss allowance ( 3) ( 249 ) 647 395
New financial assets originated
or purchased 36 10 523 569
Derecognition of financial assets ( 20 ) ( 10 ) ( 645 ) ( 675 )
Write-offs - - ( 452 ) ( 452 )
Foreign exchange ( 1) - ( 2) ( 3)

Balance at December 31 P 62 P 19 P 2,204 P 2,285

Debt investment securities at

amortized cost
Balance at January 1 P 141 P - P 1,402 P 1,543
Net remeasurement of loss allowance 85 - - 85
New financial assets originated
or purchased 35 - - 35
Foreign exchange ( 8) - ( 60) ( 68)
Derecognition of financial assets ( 24 ) - - ( 24)

Balance at December 31 P 229 P - P 1,342 P 1,571

Debt investment securities at FVOCI

Balance at January 1 P 72 P - P - P 72
Net remeasurement of loss allowance 34 - - 34
New financial assets originated
or purchased 20 - - 20
Derecognition of financial assets ( 18 ) - - ( 18)

Balance at December 31 P 108 P - P - P 108

Loan commitments and other

contingent accounts
Balance at January 1 P 114 P - P - P 114
Net remeasurement of loss allowance 21 1 - 22
New financial assets originated
or purchased 220 2 - 222
Derecognition of financial assets ( 39 ) - - ( 39 )
Foreign exchange ( 2) - - ( 2)

Balance at December 31 P 314 P 3 P - P 317

The following table sets out a reconciliation of changes in the total loss allowance.
BDO Unibank Group Parent Bank
2021 2020 2021 2020

Balance at January 1 P 60,895 P 34,433 P 58,270 P 31,562

Net remeasurement of loss
allowance 14,163 25,558 14,025 24,807
New financial assets originated
or purchased 11,418 10,473 10,874 9,572
Derecognition of financial assets ( 8,508) ( 6,287) ( 7,996) ( 4,512)
Write-offs ( 8,966) ( 2,949) ( 8,351) ( 2,827)
Foreign exchange 551 ( 333) 551 ( 332)

Balance at December 31 P 69,553 P 60,895 P 67,373 P 58,270

 - 89 -

(j) Significant Changes in Gross Carrying Amount Affecting Allowance for ECL

The tables below and in the succeeding pages provide information how the significant changes
in the gross carrying amount of financial instruments in 2021 and 2020 contributed to the
changes in the allowance for ECL.

BDO Unibank Group

2021
Stage 1 Stage 2 Stage 3 Total

Receivables from customers

corporate
Balance at January 1 P 1,557,696 P 163,212 P 15,030 P 1,735,938
Transfers to:
Stage 1 13,931 ( 13,930) ( 1) -
Stage 2 ( 1,875) 1,930 ( 55 ) -
Stage 3 ( 471) ( 552) 1,023 -
New financial assets originated
or purchased 1,306,861 5,575 5,714 1,318,150
Derecognition of financial assets ( 1,142,186) ( 39,866) ( 1,425 ) ( 1,183,477)
Write-offs - - ( 1,256 ) ( 1,256)

Balance at December 31 P 1,733,956 P 116,369 P 19,030 P 1,869,355

Receivables from customers

consumer
Balance at January 1 P 475,090 P 7,149 P 45,525 P 527,764
Transfers to:
Stage 1 10,022 ( 3,144) ( 6,878 ) -
Stage 2 ( 2,097) 2,465 ( 368 ) -
Stage 3 ( 22,686) ( 2,207) 24,893 -
New financial assets originated
or purchased 131,086 293 3,877 135,256
Derecognition of financial assets ( 117,659) ( 1,513) ( 5,435 ) ( 124,607)
Write-offs - - ( 7,575 ) ( 7,575)

Balance at December 31 P 473,756 P 3,043 P 54,039 P 530,838

Other receivables
Balance at January 1 P 94,023 P 451 P 2,656 P 97,130
Transfers to
Stage 1 71 ( 14) ( 57 ) -
Stage 2 ( 10) 13 ( 3) -
Stage 3 ( 85 ) ( 3) 88 -
New financial assets originated
or purchased 25,808 168 1,076 27,052
Derecognition of financial assets ( 4,498) ( 145) ( 951 ) ( 5,594)
Write-offs - - ( 135 ) ( 135)

Balance at December 31 P 115,309 P 470 P 2,674 P 118,453

Debt investment securities at

amortized cost
Balance at January 1 P 287,067 P - P 1,342 P 288,409
Amortization ( 1,202 ) - - ( 1,202)
New financial assets originated
or purchased 166,073 - - 166,073
Foreign exchange 9,068 - 68 9,136
Derecognition of financial assets ( 63,411 ) - - ( 63,411)

Balance at December 31 P 397,595 P - P 1,410 P 399,005

Debt investment securities at FVOCI

Balance at January 1 P 174,559 P - P - P 174,559
Amortization ( 483) - - ( 483)
Fair value gain ( 5,576) - - ( 5,576)
New financial assets originated
or purchased 474,062 - - 474,062
Foreign Exchange 4,986 - - 4,986
Derecognition of financial assets ( 482,087) - - ( 482,087 )

Balance at December 31 P 165,461 P - P - P 165,461

 - 90 -

BDO Unibank Group

2021
Stage 1 Stage 2 Stage 3 Total

Loan commitments and other

contingent accounts
Balance at January 1 P 96,509 P 145 P 16 P 96,670
Transfers to
Stage 1 48 ( 48) - -
New financial assets originated
or purchased 54,277 451 - 54,728
Derecognition of financial assets ( 38,431) ( 45) ( 16 ) ( 38,492)

Balance at December 31 P 112,403 P 503 P - P 112,906

2020
Stage 1 Stage 2 Stage 3 Total

Receivables from customers

corporate
Balance at January 1 P 1,675,381 P 7,980 P 10,647 P 1,694,008
Transfers to:
Stage 1 2,363 ( 2,363 ) - -
Stage 2 ( 133,928 ) 133,932 ( 4) -
Stage 3 ( 3,221 ) ( 784 ) 4,005 -
New financial assets originated
or purchased 793,998 25,413 4,004 823,415
Derecognition of financial assets ( 776,897 ) ( 966 ) ( 3,622 ) ( 781,485 )

Balance at December 31 P 1,557,696 P 163,212 P 15,030 P 1,735,938

Receivables from customers

consumer
Balance at January 1 P 496,344 P 3,029 P 14,669 P 514,042
Transfers to:
Stage 1 8,845 ( 10,117 ) 1,272 -
Stage 2 ( 3,695 ) 3,890 ( 195 ) -
Stage 3 ( 25,136 ) ( 2,764 ) 27,900 -
New financial assets originated
or purchased 455,090 14,188 9,518 478,796
Derecognition of financial assets ( 456,358 ) ( 1,077 ) ( 5,142 ) ( 462,577 )
Write-offs - - ( 2,497 ) ( 2,497 )

Balance at December 31 P 475,090 P 7,149 P 45,525 P 527,764

Other receivables
Balance at January 1 P 47,185 P 325 P 2,883 P 50,393
Transfers to
Stage 1 ( 28 ) 16 12 -
Stage 2 ( 2) - 2 -
Stage 3 18 ( 22 ) 4 -
New financial assets originated
or purchased 103,346 300 820 104,466
Derecognition of financial assets ( 56,496 ) ( 168 ) ( 613 ) ( 57,277 )
Write-offs - - ( 452 ) ( 452 )

Balance at December 31 P 94,023 P 451 P 2,656 P 97,130

Debt investment securities at

amortized cost
Balance at January 1 P 263,736 P - P 1,402 P 265,138
Amortization 2,605 - - 2,605
New financial assets originated
or purchased 102,273 - - 102,273
Foreign exchange ( 7,576 ) - ( 60) ( 7,636 )
Derecognition of financial assets ( 73,971 ) - - ( 73,971 )

Balance at December 31 P 287,067 P - P 1,342 P 288,409

 - 91 -

BDO Unibank Group

2020
Stage 1 Stage 2 Stage 3 Total

Debt investment securities at FVOCI

Balance at January 1 P 134,123 P - P - P 134,123
Amortization 336 - - 336
Fair value gain 4,069 - - 4,069
New financial assets originated
or purchased 193,217 - - 193,217
Foreign Exchange ( 4,362 ) ( 4,362 )
Derecognition of financial assets ( 152,824 ) - - ( 152,824 )

Balance at December 31 P 174,559 P - P - P 174,559

Loan commitments and other

contingent accounts
Balance at January 1 P 457,736 P 1 P 44 P 457,781
Transfers to
Stage 2 ( 25 ) 25 - -
New financial assets originated
or purchased 65,525 119 - 65,644
Derecognition of financial assets ( 426,727 ) - ( 28 ) ( 426,755 )

Balance at December 31 P 96,509 P 145 P 16 P 96,670

Parent Bank

2021
Stage 1 Stage 2 Stage 3 Total

Receivables from customers

corporate
Balance at January 1 P 1,554,068 P 163,030 P 15,027 P 1,732,125
Transfers to:
Stage 1 13,707 ( 13,707) - -
Stage 2 ( 1,868) 1,922 ( 54 ) -
Stage 3 ( 470) ( 550) 1,020 -
New financial assets originated
or purchased 1,301,391 5,535 5,713 1,312,639
Derecognition of financial assets ( 1,138,790) ( 39,866) ( 1,424 ) ( 1,180,080)
Write-offs - - ( 1,256 ) ( 1,256)

Balance at December 31 P 1,728,038 P 116,364 P 19,026 P 1,863,428

Receivables from customers

consumer
Balance at January 1 P 446,247 P 4,590 P 41,533 P 492,370
Transfers to:
Stage 1 7,056 ( 1,318) ( 5,738 ) -
Stage 2 ( 1,887) 2,227 ( 340 ) -
Stage 3 ( 21,190) ( 1,908) 23,098 -
New financial assets originated
or purchased 99,753 145 482 100,380
Derecognition of financial assets ( 91,258) ( 993) ( 5,409 ) ( 97,660)
Write-offs - - ( 6,967 ) ( 6,967)

Balance at December 31 P 438,721 P 2,743 P 46,659 P 488,123

Other receivables
Balance at January 1 P 88,556 P 413 P 2,496 P 91,465
Transfers to
Stage 1 71 ( 14) ( 57 ) -
Stage 2 ( 10) 13 ( 3) -
Stage 3 ( 73) ( 2) 75 -
New financial assets originated
or purchased 23,597 135 843 24,575
Derecognition of financial assets ( 841) ( 139) ( 908 ) ( 1,888)
Write-offs - - ( 128 ) ( 128)

Balance at December 31 P 111,300 P 406 P 2,318 P 114,024

 - 92 -

Parent Bank
2021
Stage 1 Stage 2 Stage 3 Total

Debt investment securities at

amortized cost
Balance at January 1 P 267,901 P - P 1,342 P 269,243
Amortization ( 1,186) - - ( 1,186 )
New financial assets originated
or purchased 157,763 - - 157,763
Foreign exchange 8,746 - 68 8,814
Derecognition of financial assets ( 55,797 ) - - ( 55,797)

Balance at December 31 P 377,427 P - P 1,410 P 378,837

Debt investment securities at FVOCI

Balance at January 1 P 121,848 P - P - P 121,848
Amortization ( 334 ) - - ( 334)
Fair value gain ( 2,861 ) - - ( 2,861 )
New financial assets originated
or purchased 445,300 - - 445,300
Foreign exchange 4,249 - - 4,249
Derecognition of financial assets ( 454,107 ) - - ( 454,107)

Balance at December 31 P 114,095 P - P - P 114,095

Loan commitments and other

contingent accounts
Balance at January 1 P 96,509 P 145 P 16 P 96,670
Transfers to Stage 2 48 ( 48) - -
New financial assets originated
or purchased 54,277 451 - 54,728
Derecognition of financial assets ( 38,431) ( 45) ( 16 ) ( 38,492)

Balance at December 31 P 112,403 P 503 P - P 112,906

2020
Stage 1 Stage 2 Stage 3 Total

Receivables from customers corporate

Balance at January 1 P 1,660,571 P 7,433 P 9,536 P 1,677,540
Transfers to:
Stage 1 1,919 ( 1,919 ) - -
Stage 2 ( 133,669 ) 133,669 - -
Stage 3 ( 1,444 ) ( 524 ) 1,968 -
New financial assets originated
or purchased 791,337 25,150 4,057 820,544
Derecognition of financial assets ( 764,646 ) ( 779 ) ( 534 ) ( 765,959 )

Balance at December 31 P 1,554,068 P 163,030 P 15,027 P 1,732,125

Receivables from customers consumer

Balance at January 1 P 465,938 P 2,262 P 12,126 P 480,326
Transfers to:
Stage 1 ( 5,608 ) ( 354 ) 5,962 -
Stage 2 ( 3,159 ) 3,208 ( 49 ) -
Stage 3 ( 24,457 ) ( 1,464 ) 25,921 -
New financial assets originated
or purchased 456,539 1,308 3,875 461,722
Derecognition of financial assets ( 443,006 ) ( 370 ) ( 3,927 ) ( 447,303 )
Write-offs - - ( 2,375 ) ( 2,375 )

Balance at December 31 P 446,247 P 4,590 P 41,533 P 492,370

Other receivables
Balance at January 1 P 45,128 P 324 P 2,170 P 47,622
Transfers to
Stage 1 ( 147 ) 17 130 -
Stage 2 9 ( 17 ) 8 -
Stage 3 19 - ( 19 ) -
New financial assets originated
or purchased 89,424 300 1,227 90,951
Derecognition of financial assets ( 45,877 ) ( 211 ) ( 568 ) ( 46,656 )
Write-offs - - ( 452 ) ( 452 )

Balance at December 31 P 88,556 P 413 P 2,496 P 91,465

 - 93 -

Parent Bank
2020
Stage 1 Stage 2 Stage 3 Total

Debt investment securities at

amortized cost
Balance at January 1 P 247,449 P - P 1,402 P 248,851
Amortization 2,608 - - 2,608
New financial assets originated
or purchased 96,702 - - 96,702
Foreign exchange ( 7,254 ) - ( 60) ( 7,314)
Derecognition of financial assets ( 71,604 ) - - ( 71,604)

Balance at December 31 P 267,901 P - P 1,342 P 269,243

Debt investment securities at FVOCI

Balance at January 1 P 89,431 P - P - P 89,431
Amortization ( 27 ) - - ( 27 )
Fair value gain 2,381 - - 2,381
New financial assets originated
or purchased 160,325 - - 160,325
Foreign exchange ( 3,414 ) - - ( 3,414 )
Derecognition of financial assets ( 126,848 ) - - ( 126,848)

Balance at December 31 P 121,848 P - P - P 121,848

Loan commitments and other

contingent accounts
Balance at January 1 P 457,736 P 1 P 44 P 457,781
Transfers to Stage 2 ( 25 ) 25 - -
New financial assets originated
or purchased 65,525 119 - 65,644
Derecognition of financial assets ( 426,727 ) - ( 28 ) ( 426,755 )

Balance at December 31 P 96,509 P 145 P 16 P 96,670

(k) Sensitivity Analysis on ECL Measurement

Set out below are the changes to the BDO Unibank 12-month ECL as of
December 31, 2021 and 2020 that would result from reasonably possible changes in these
parameters from the actual assumptions used in the BDO Unibank
variable assumptions.

Change in MEVs Impact on ECL

Increase Decrease
Increase Decrease in MEV in MEV

2021

Corporate or
Commercial Loans:
GDP growth rate +1% -1% -6.8% 6.8%
Inflation rate +1% -1% 2.1% -2.6%

Credit Card Receivables

or Personal Loans:
GDP growth rate +1% -1% -1.4% 1.4%
Unemployment rate +1% -1% 1.1% -1.1%

Home/Housing Loans:
GDP growth rate +1% -1% -0.6% 0.6%
Inflation rate +1% -1% 0.1% -0.1%

Auto Loans:
GDP growth rate +1% -1% -0.5% 0.5%
Unemployment rate +1% -1% 3.7% -3.7%
 - 94 -

Change in MEVs Impact on ECL

Increase Decrease
Increase Decrease in MEV in MEV

2020

Corporate or
Commercial Loans:
GDP growth rate +1% -1% -1.7% 1.7%
Inflation rate +1% -1% 0.1% -0.1%

Credit Card Receivables

or Personal Loans:
GDP growth rate +1% -1% -5.0% 5.0%
Unemployment rate +1% -1% 0.2% -0.2%

Home/Housing Loans:
GDP growth rate +1% -1% -3.0% 3.0%
Unemployment rate +1% -1% 2.0% -2.0%
Inflation rate +1% -1% 0.2% -0.2%

Auto Loans:
GDP growth rate +1% -1% -0.5% 0.5%
Unemployment rate +1% -1% 3.0% -3.0%

4.4 Operational Risk

failure to comply with defined operational procedures;

inability to address fraud committed internally or externally;

inability to handle system failures; and,

inability to cope with the impact of external events.

BDO Unibank Group manages its operational risks by instituting policies to minimize its
expected losses, allocating capital for the unexpected losses and having insurance and/or a
business continuity plan to prepare for catastrophic losses.

Framework

True to its commitment to sound management and corporate governance, BDO Unibank
Group considers operational risk management as a critical element in the conduct of its

the BOD has the ultimate responsibility for providing leadership in the management of
operational risk in BDO Unibank Group.

The RMG provides the common risk language and management tools across BDO Unibank
Group as well as monitors the implementation of the ORM framework and policies. The
business process owners, as risk owners, are responsible for identifying, assessing and limiting
the impact of risk in their businesses/operations.
 - 95 -

The BDO Unibank Group continues to conduct periodic Risk and Control Self-Assessment
(RCSA) so that business process owners could document both their operational risks and
control mechanisms they have put in place to manage those risks. This ORM tool allows
the BDO Unibank Group to identify risks the business/operation faces, assess the severity
of those risks, evaluate the adequacy of key controls associated to the identified risks, and take
proactive action to address any deficiencies identified.

The BDO Unibank Group also continues to use Key Risk Indicators (KRI) as alerts for
operational risk vulnerabilities. Reporting of top KRIs to the BOD through the RMC is done
quarterly.

The BDO Unibank Group likewise uses Loss Data Collection, Analysis and Reporting that
allows the BDO Unibank Group to gather data per Basel loss event category across business
lines. The collected data are processed for information and appropriate escalation, root cause
analysis, control effectiveness and enables action plans to prevent recurrence.

These ORM tools are continually being reviewed and enhanced to proactively manage
operational risks. The Operational Risk Management Solution (ORMS) was implemented
to automate the reporting of BDO Uniban , KRIs and operational losses.
The bank-wide information asset inventory is regularly reviewed to address operational risks
arising from information security concerns. The inventory identified critical applications and
sensitive data base
as well as protection measures in place to mitigate these risks. Under the purview of
information security is data privacy. The BDO Unibank
accordance with the R.A. No. 10173, Data Privacy Act of 2012.

Information technology risks which include current and prospective negative impact to
earnings arising from failure of IT systems and realization of cyber security threats are
appropriately managed through policies and measures that are integrated into BDO Unibank
-to-day operations.

Operational risks arising from health, safety and environmental issues are appropriately

Day-to-day operations. These include Environmental Consciousness, Occupational Health

and Safety, and Community Health and Safety.

The BDO Unibank Group continues to review its preparedness for major disaster scenarios
and implements required changes in its Business Continuity Plan.

4.5 Anti-Money Laundering Controls

The Anti-Money Laundering (AML) Program of the BDO Unibank Group and the Parent Bank
is articulated in the Board-approved Money Laundering and Terrorist Financing Prevention
Program (MTPP) Manual. The MTPP encapsulates the policies and procedures covering the:
(i) on-boarding of clients, Know Your Client and required due diligence; (ii) customer risk
assessment; (iii) on-going monitoring of transactions; (iv) regulatory reporting;
(v) record-keeping; (vi) training of all officers and staff including BOD; (vii) Independent
Compliance Testing (ICT); and (viii) Institutional Risk Assessment.
 - 96 -

The MTPP provides the framework for the BDO Unibank Group and the Parent Bank to
adhere with the AML and Counter-Terrorism Financing Laws and Regulations:

1. R.A. No. 9160: The Anti-Money Laundering Act of 2001 (AMLA) as amended by
R.A. No 9194 (2003); R.A. 10167 (2012); R.A. 10365 (2013); R.A. No. 10927 (2017) and
R.A. No. 11521 (2021); together with applicable Implementing Rules and Regulations (IRR)
2. BSP Circular No. 706 (2011), as amended by BSP Circular No. 950 (2017); and
BSP Circular No. 1022 (2018)
3. R.A. 10168: The Terrorism Financing Prevention and Suppression Act of 2012 and its IRR;
R.A. 10697 Strategic Trade Management Act (2015) and its IRR; and the
R.A. 11479 Anti-Terrorism Act (2020)

The Chief Compliance Officer directly reports to the BOD through the Board Audit
Committee and is also a member of the AML Committee of the Parent Bank. The
AML Committee, composed of senior officers from various units, is tasked to oversee
.

4.6 Impact of LIBOR Reform

As disclosed in Note 2.2(a), the BDO Unibank Group currently has exposure to contracts which
reference LIBOR and extend beyond 2021, including swaps which will transition under the
ISDA protocols.

In 2020, the Parent Bank established a steering committee, consisting of key finance, risk,
information technology, treasury, legal and compliance personnel and external advisors, to
oversee the BDO Unibank Group LIBOR transition plan. This steering committee put in
place a transition project for those contracts which reference USD LIBOR to transition them
to SOFR, with the aim of minimizing the potential disruption to business and mitigating
operational and conduct risks and possible financial losses. This transition project is considering
changes to systems, processes, risk management and valuation models, as well as managing
related tax and accounting implications. As at December 31, 2021, changes required to systems,
processes and models have been identified and have been partially implemented. There have
been general communications with counterparties, but specific changes to contracts required by
LIBOR reform have not yet been proposed or agreed. The BDO Unibank Group has identified
that the areas of most significant risk arising from the replacement of LIBOR are: (i) updating
systems and processes which capture LIBOR referenced contracts; (ii) amending affected
contracts, or existing fallback/transition clauses not operating as anticipated; and, (iii) reviewing
mismatches in timing of derivatives and loans transitioning from LIBOR and the resulting
impact on economic risk management.

The BDO Unibank Group continues to engage with industry participants and the BSP to ensure
an orderly transition to SOFR and minimize the risks arising from the transition. The BDO
Unibank Group continues to identify and assess risks associated with USD LIBOR replacement.
 - 97 -

The following table contains details of all of the financial instruments that the BDO Unibank
Group and the Parent Bank hold at December 31, 2021 for each LIBOR rate that have not yet
transitioned to SOFR or an alternative interest rate benchmark as of December 31, 2021:

Carrying value Notional amount

BDO Unibank Group

USD LIBOR P 353,525 P 366,610

GBP LIBOR 2,959 3,226
EUR LIBOR 1,218 460
JPY LIBOR 135 47

P 357,837 P 370,343

Parent Bank

USD LIBOR P 352,347 P 309,088

GBP LIBOR 2,959 3,226
EUR LIBOR 1,218 460
JPY LIBOR 135 46

P 356,659 P 312,820

The breakdown of the financial instruments between non-derivative financial assets and
liabilities and derivative instruments are as follows:

Carrying value Notional amount

BDO Unibank Group

Non-derivative financial assets

Loans and other receivables P 158,669 P -

Non-derivative financial liabilities

Bills payable 41,534 -
Other liabilities 9,282 -

Derivatives:
With positive fair values 6,223 183,012
With negative fair values ( 5,629 ) 187,331

P 210,079 P 370,343
 - 98 -

Carrying value Notional amount

Parent Bank

Non-derivative financial assets

Loans and other receivables P 157,976 P -

Non-derivative financial liabilities

Bills payable 41,534 -
Other liabilities 9,282 -

Derivatives:
With positive fair values 2,430 154,973
With negative fair values ( 2,321 ) 157,847

P 208,901 P 312,820

The following are the key risks for the BDO Unibank Group arising from the transition.

Liquidity risk: There are fundamental differences between LIBOR and the various
alternative benchmark rates which the BDO Unibank Group will be adopting. LIBOR are
forward-looking term rates published for a period (e.g., three months) at the beginning of
that period and include an inter-bank credit spread, whereas alternative benchmark rates
are typically risk-free overnight rates published at the end of the overnight period with no
embedded credit spread. These differences will result in additional uncertainty regarding
floating rate interest payments which will require additional liquidity management. The
BDO Unibank Group s liquidity risk management policy has been updated to ensure
sufficient liquid resources to accommodate unexpected increases in overnight rates.

Litigation risk: If no agreement is reached to implement the interest rate benchmark reform
on existing contracts (e.g., arising from differing interpretation of existing fallback terms),
there is a risk of prolonged disputes with counterparties which could give rise to additional
legal and other costs. The BDO Unibank Group is working closely with all counterparties
to avoid this from occurring.

Operational risk: The current treasury management system is

undergoing upgrades to fully manage the transition to alternative benchmark rates and there
is a risk that such upgrades are not fully functional in time, resulting in additional manual
procedures which give rise to operational risks. The BDO Unibank Group is working
closely with its system provider to ensure the relevant updates are made in good time and
the BDO Unibank Group has alternative manual procedures in place with relevant controls
to address any potential delay.
 -99 -

5. CAPITAL MANAGEMENT

5.1 Capital Management and Regulatory Capital

On January 15, 2009, the BSP issued Circular No. 639 articulating the need for banks
to adopt and document an Internal Capital 2021 Adequacy Assessment Process (ICAAP).
All universal and commercial banks are expected to perform a thorough assessment of all
their material risks and maintain adequate capital to support these risks. This is intended to
complement the current regulatory capital requirement of at least 10% of risk assets, which
covered only credit, market and operational risks. On December 29, 2009, the BSP issued
Circular No. 677 effectively extending the implementation of ICAAP from January 1, 2010
to January 1, 2011.

In October 2009, BDO Unibank Group presented its ICAAP and submitted the initial draft
of its ICAAP document to the BSP. Based on comments from the BSP, BDO Unibank
Group subsequently revised its ICAAP document and secured approval from its BOD on
January 8, 2011. Annually as required, BDO Unibank Group submits its updated ICAAP to
the BSP.

discusses governance, risk assessment, capital assessment and planning, capital adequacy
monitoring and reporting, as well as internal control reviews.

The lead regulator of the banking industry, the BSP, sets and monitors capital requirements for
BDO Unibank Group. In implementing current capital requirements, the BSP requires BDO
Unibank Group to maintain a prescribed ratio of qualifying capital to risk-weighted assets.

The BSP has adopted the Basel 3 risk-based capital adequacy framework effective
January 1, 2014, which was amended on January 1, 2019, which requires BDO Unibank Group
to maintain:

(a) Common Equity Tier 1 (CET 1) of at least 6.0% of risk-weighted assets;

(b) Tier 1 Capital of at least 7.5% of risk-weighted assets;
(c) Qualifying Capital (Tier 1 plus Tier 2 Capital) of at least 10.0% of risk-weighted assets;
(d) Capital Conservation Buffer of 2.5% of risk-weighted assets, comprised of CET 1
Capital; and,
(e) Countercyclical Capital Buffer (CCyB) of 0% subject to upward adjustment to a rate
determined by the Monetary Board when systemic conditions warrant but not to exceed
2.5%.

The regulatory capital is analyzed as CET 1 Capital, Additional Tier 1 Capital and
Tier 2 Capital, each adjusted for prescribed regulatory deductions.

Risk assets consist of total assets after exclusion of cash on hand, due from BSP, loans covered
by hold-out on or assignment of deposits, loans or acceptances under letters of credit to the
extent covered by margin deposits, and other non-risk items as determined by the Monetary
Board of the BSP.
 -100 -

and market confidence and to sustain future development of the business. The impact of the

the need to maintain a balance between the higher returns that might be possible with greater
gearing and the advantages and security afforded by a sound capital position.

Under BSP Circular No. 781, universal banks with more than 100 branches are required to
comply with the minimum capital requirement of P20 billion. As of December 31, 2021 and
2020, the Parent Bank has complied with the above capitalization requirement.

BSP issued Circular No. 856 on the guidelines on the framework for dealing with domestic
systemically important banks (DSIB) that is consistent with the Basel principles, as amended by
BSP Circular No. 1051 dated September 27, 2019. Banks, which are identified as DSIB, shall
be required to have a higher loss absorbency (HLA) depending on their computed systemic
importance. The HLA requirement is aimed at ensuring that DSIBs have a higher share of
their statements of financial position funded by instruments, which increase their resilience as a
going concern. The HLA requirement is to be met with CET 1 capital.

Under BSP Circular No. 1051, banks identified by the BSP as DSIB are required to put up
lower HLA to be met CET 1 capital ranging from 1.50% to 2.50%, effective October 12, 2019.

BSP Circular No. 1024 requires banks to put up a CCyB, which is set initially at 0%, composed
of CET 1. CCyB may be subject to upward adjustment to a rate determined by the Monetary
Board when systemic conditions warrant but not to exceed 2.5%. This took effect on
December 21, 2018.

balances prepared under PFRS) based on the Basel 3 risk-based capital adequacy framework as
of December 31, 2021 and 2020 as follows:
BDO
Unibank Group Parent Bank
December 31, 2021
Tier 1 Capital
CET 1 P 403,388 P 404,134
Additional Tier 1 5,150 5,150
408,538 409,284
Tier 2 Capital 25,209 24,265
Total Regulatory Capital 433,747 433,549
Deductions ( 35,097) ( 61,769)
Total Qualifying Capital P 398,650 P 371,780
Total Risk-Weighted Assets P 2,714,820 P 2,617,747

Capital ratios:
Total qualifying capital expressed as a
percentage of total risk weighted assets 14.7% 14.2%
Tier 1 Capital Ratio 13.8% 13.3%
Total CET 1 Ratio 13.6% 13.1%
 -101 -

BDO
Unibank Group Parent Bank

December 31, 2020

Tier 1 Capital
CET 1 P 373,342 P 374,032
Additional Tier 1 5,150 5,150
378,492 379,182
Tier 2 Capital 23,947 23,248
Total Regulatory Capital 402,439 402,430
Deductions ( 31,803) ( 58,626)
Total Qualifying Capital P 370,636 P 343,804
Total Risk-Weighted Assets P 2,579,533 P 2,492,540

Capital ratios:
Total qualifying capital expressed as a
percentage of total risk weighted assets 14.4% 13.8%
Tier 1 Capital Ratio 13.4% 12.9%
Total CET 1 Ratio 13.2% 12.7%

At the end of each reporting period, the BDO Unibank Group and the Parent Bank have
complied with the prescribed ratio of qualifying capital to risk-weighted assets.

5.2 Leverage Ratio

On June 9, 2015, the BSP issued Circular No. 881, Implementing Guidelines on the Basel III Leverage
Ratio Framework, which provides the implementing guidelines on the leverage ratio framework
designed to act as a supplementary measure to the risk-based capital requirements. It sets out a
minimum leverage ratio of 5.00% and shall be complied with at all times.

The Basel III leverage ratio is defined as the ratio of capital measure (Tier 1 Capital) and the
exposure measure which include on-balance sheet, derivatives and securities financing
transactions exposures and off-balance sheet items.

The Basel III leverage ratio as reported to the

BSP are as follows:

2021 2020 2019

BDO Unibank Group

Capital Measure 10.3% 10.2% 10.0%

Exposure Measure

Parent Bank

Capital Measure 9.9% 9.8% 9.6%

Exposure Measure
 -102 -

5.3 Liquidity Coverage Ratio and Net Stable Funding Ratio

On March 10, 2016, the BSP issued Circular No. 905, Implementation of Basel III Framework
on Liquidity Standards - Liquidity Coverage Ratio and Disclosure Standards, which provides the
implementing guidelines on liquidity coverage ratio (LCR) and disclosure standards that are
consistent with the Basel III framework. Circular No. 905 requires the BDO Unibank Group to
maintain available High Quality Liquid Assets (HQLA) to meet anticipated net cash outflows for
a 30-day period under stress conditions. The BDO Unibank Group has fully complied with the
LCR minimum requirement of 100% coverage effective January 1, 2019.

-term liquidity position and as a defense against

potential onset of liquidity stress, it maintains adequate stock of unencumbered HQLAs that
consists of cash or assets that can be freely converted into cash at little or no loss of value in
private markets.

LCR as of December 31, 2021, 2020, and

2019 is analyzed below.

2021 2020 2019

BDO Unibank Group
Total Stock of High
Quality Liquid Assets 145.4% 127.1% 108.4%
Total Net Cash Outflows

Parent Bank

Total Stock of High

Quality Liquid Assets 145.9% 129.0% 109.2%
Total Net Cash Outflows

Net Stable Funding Ratio (NSFR), as detailed in BSP Circular No. 1007, Implementing Guidelines
on the adoption of the Basel III Framework on Liquidity Standards - Net Stable Funding Ratio, is an
assessment of the level of sustainable funding required to reduce funding risk over a one-year
time horizon. The NSFR complements the LCR, which promotes short-term resilience of the

The BDO Unibank Group has fully complied with the NSFR minimum requirement of 100%
coverage effective January 1, 2019.

To promote long-term resilience against liquidity risk, the BDO Unibank Group maintains a
stable funding profile in relation to the composition of its assets and off-balance sheet activities
and seeks to meet this objective by limiting overreliance on short-term wholesale funding and
promoting enhanced assessment of funding risk across all on- and off-balance sheet accounts.
 -103 -

2020 and 2019 are summarized below.

2021 2020 2019

BDO Unibank Group

Available Stable Funding 123.5% 122.0% 116.7%

Required Stable Funding

Parent Bank

Available Stable Funding 123.1% 122.0% 117.4%

Required Stable Funding

6. SEGMENT REPORTING
6.1 Business Segments

according to the nature of services provided and the different markets served, with each
segment representing a strategic business unit. These are also the basis of BDO Unibank
Group in reporting to its chief operating decision-maker for its strategic decision-making
activities.

segments. In addition, minor operating segments, for which quantitative thresholds have not
been met, as described in PFRS 8 are combined as Others.
(a) Commercial banking handles the entire lending (corporate and consumer), trade
financing and cash management services for corporate and retail customers;
(b) Investment banking provides services to corporate clients outside the traditional loan
and deposit products. These services include loan syndications, underwriting and placing
of debt and equity securities, financial advisory services, and securities brokerage;
(c) Private banking provides traditional and non-traditional investment and structured
products to high net worth individuals and institutional accounts;
(d) Leasing and financing provides direct leases, sale and leaseback arrangements and real
estate leases;

(e) Insurance engages in insurance brokerage and life insurance business by providing
protection, education, savings, retirement and estate planning solutions to individual and
corporate clients through life insurance products and services; and,
(f) Others includes remittance and realty management, none of which individually
constitutes a separate reportable segment.
These segments are the basis on which BDO Unibank Group reports its segment information.
Transactions between the segments are on normal commercial terms and conditions.
Inter-segment transactions are eliminated in consolidation.
 -104 -

Funds are ordinarily allocated between segments, resulting in funding cost transfers disclosed

of capital. There are no other material items of income or expense between the segments.

Segment assets and liabilities comprise operating assets and liabilities including items such as
taxation and borrowings.

Segment revenues and expenses that are directly attributable to primary operating segment and
the relevant portions of BDO Unibank Gr
that operating segment are accordingly reflected as revenues and expenses of that operating
segment. Revenue sharing agreements are used to allocate external customer revenues to a
segment on a reasonable basis.

6.2 Analysis of Segment Information

Segment information (by service lines) as of and for the years ended December 31, 2021,
2020 and 2019 are as follows:
Leasing
Commercial Investment Private and
Banking Banking Banking Financing Insurance Others Total

December 31, 2021

Revenues

From external customer

Interest income P 140,997 P 7 P 1,108 P 632 P 2,133 P 2 P 144,879
Interest expense ( 13,166 ) ( 1) ( 70 ) ( 229 ) ( 66) ( 1) ( 13,533 )
Net interest income 127,831 6 1,038 403 2,067 1 131,346

Intersegment revenue
Interest income 119 2 - - 3 1 125
Interest expense ( 16 ) ( 45 ) ( 4) ( 28 ) ( 11) ( 65 ) ( 169 )
Net interest income 103 ( 43 ) ( 4) ( 28 ) ( 8) ( 64 ) ( 44)

Other operating income

Investment banking fees - 2,268 - - - - 2,268
Others 42,725 277 1,451 809 20,412 543 66,217
42,725 2,545 1,451 809 20,412 543 68,485

Total net revenues 170,659 2,508 2,485 1,184 22,471 480 199,787

Expenses

Other operating expenses

Depreciation and
amortization 8,424 85 72 531 137 85 9,334
Impairment losses 17,066 55 ( 20 ) ( 20 ) ( 18) - 17,063
Others 90,521 772 1,204 385 19,005 291 112,178
116,011 912 1,256 896 19,124 376 138,575

Segment operating income 54,648 1,596 1,229 288 3,347 104 61,212
Tax expense 11,584 375 264 43 623 18 12,907

Segment net income P 43,064 P 1,221 P 965 P 245 P 2,724 P 86 P 48,305

Statement of Financial Position

Total resources
Segment assets P 3,506,708 P 6,736 P 37,937 P 15,208 P 82,976 P 4,320 P 3,653,885
Deferred tax assets
(liabilities) - net 6,843 ( 154 ) 15 16 53 ( 5) 6,768
Intangible assets 7,194 76 21 - 44 1 7,336

P 3,520,745 P 6,658 P 37,973 P 15,224 P 83,073 P 4,316 P 3,667,989

Total liabilities P 3,091,065 P 2,455 P 31,905 P 8,072 P 71,798 P 2,212 P 3,207,507

Other segment information

Capital expenditures P 5,020 P 26 P 23 P 239 P 3,564 P 2 P 8,874

Investment in associates under
equity method P - P - P - P - P - P 5,347 P 5,347
Share in the profit
of associates P - P - P - P - P - P 814 P 814
 -105 -

Leasing
Commercial Investment Private and
Banking Banking Banking Financing Insurance Others Total

December 31, 2020

Revenues

From external customer

Interest income P 152,691 P 18 P 1,196 P 1,237 P 1,883 P 6 P 157,031
Interest expense ( 22,536 ) ( 3) ( 196 ) ( 502 ) ( 86 ) ( 8) ( 23,331 )
Net interest income 130,155 15 1,000 735 1,797 ( 2) 133,700

Intersegment revenue
Interest income 238 9 - 2 13 1 263
Interest expense ( 35 ) ( 73 ) ( 6)( 95 ) ( 8) ( 80 ) ( 297 )
Net interest income 203 ( 64 ) ( 6)( 93 ) 5 ( 79 ) ( 34)

Other operating income

Investment banking fees - 1,410 - - - - 1,410
Others 38,683 285 1,552 1,478 16,440 551 58,989
38,683 1,695 1,552 1,478 16,440 551 60,399

Total net revenues 169,041 1,646 2,546 2,120 18,242 470 194,065

Expenses

Other operating expenses

Depreciation and
amortization 8,289 105 71 677 101 91 9,334
Impairment losses 29,714 19 9 444 54 - 30,240
Others 85,849 817 1,168 549 16,059 290 104,732
123,852 941 1,248 1,670 16,214 381 144,306

Segment operating income 45,189 705 1,298 450 2,028 89 49,759

Tax expense 16,462 262 291 171 571 19 17,776

Segment net income P 28,727 P 443 P 1,007 P 279 P 1,457 P 70 P 31,983

Statement of Financial Position

Total resources
Segment assets P 3,262,339 P 6,522 P 41,408 P 16,223 P 70,354 P 4,388 P 3,401,234
Deferred tax assets
(liabilities) - net 8,023 ( 166 ) 8 6 42 ( 2) 7,911
Intangible assets 5,677 114 17 2 47 - 5,857

P 3,276,039 P 6,470 P 41,433 P 16,231 P 70,443 P 4,386 P 3,415,002

Total liabilities P 2,877,836 P 2,579 P 35,288 P 9,268 P 64,499 P 2,191 P 2,991,661

Other segment information

Capital expenditures P 4,019 P 12 P 10 P 314 P 24 P 4 P 4,383

Investment in associates under
equity method P - P - P - P - P - P 5,015 P 5,015
Share in the profit
of associates P - P - P - P - P - P 470 P 470
 -106 -

Leasing
Commercial Investment Private and
Banking Banking Banking Financing Insurance Others Total

December 31, 2019

Revenues
From external customer
Interest income P 155,463 P 26 P 1,466 P 1,976 P 1,632 P 9 P 160,572
Interest expense ( 38,659) 1 ( 643 ) ( 1,289 ) ( 89 ) ( 2) ( 40,681)
Net interest income 116,804 27 823 687 1,543 7 119,891
Intersegment revenues
Interest income 231 41 - - 38 43 353
Interest expense ( 91) ( 73 ) ( 27 ) ( 101 ) ( 6) ( 84) ( 382 )
Net interest income 140 ( 32 ) ( 27 ) ( 101 ) 32 ( 41) ( 29)

Other operating income

Investment banking fees - 1,371 - - - - 1,371
Others 44,684 405 1,662 1,054 17,079 587 65,471
44,684 1,776 1,662 1,054 17,079 587 66,842
Total net revenues 161,628 1,771 2,458 1,640 18,654 553 186,704
Expenses
Other operating expenses
Depreciation and
amortization 7,841 107 66 794 87 85 8,980
Impairment losses 6,003 68 28 63 5 - 6,167
Others 89,885 833 1,259 702 13,908 349 106,936
103,729 1,008 1,353 1,559 14,000 434 122,083

Segment operating income 57,899 763 1,105 81 4,654 119 64,621

Tax expense 13,496 256 226 34 967 40 15,019

Segment net income P 44,403 P 507 P 879 P 47 P 3,687 P 79 P 49,602

Statement of Financial Position

Total resources
Segment assets P 3,081,358 P 7,175 P 34,857 P 30,806 P 58,302 P 5,329 P 3,217,827
Deferred tax assets
(liabilities) - net 8,878 ( 154 ) 24 133 48 ( 2) 8,927
Intangible assets 5,400 139 18 2 55 1 5,615
P 3,095,636 P 7,160 P 34,899 P 30,941 P 58,405 P 5,328 P 3,232,369

Total liabilities P 2,720,385 P 2,963 P 29,083 P 25,327 P 48,549 P 2,184 P 2,828,491

Other segment information

Capital expenditures P 6,332 P 22 P 18 P 533 P 76 P 14 P 6,995

Investment in associates under
equity method P - P - P - P - P - P 5,048 P 5,048
Share in the profit
of associates P - P - P - (P 42 ) P - P 738 P 696
 -107 -

6.3 Reconciliation
Presented below i
key financial information presented in its consolidated financial statements.
2021 2020 2019

Revenue
Total segment net revenues P 199,787 P 194,065 P 186,704
Elimination of intersegment
revenues ( 7,087 ) ( 5,155 ) ( 6,702 )

Net revenues as reported in profit or loss P 192,700 P 188,910 P 180,002

Profit or loss
Total segment net income P 48,305 P 31,983 P 49,602
Elimination of intersegment
profit ( 5,450 ) ( 3,729 ) ( 5,434 )

Net profit as reported

in profit or loss P 42,855 P 28,254 P 44,168

Resources
Total segment resources P 3,667,989 P 3,415,002 P 3,232,369
Elimination of intersegment
assets ( 44,240 ) ( 40,102 ) ( 43,511 )

Total resources P 3,623,749 P 3,374,900 P 3,188,858

Liabilities
Total segment liabilities P 3,207,507 P 2,991,661 P 2,828,491
Elimination of intersegment
liabilities ( 8,306 ) ( 9,782 ) ( 10,220 )

Total liabilities P 3,199,201 P 2,981,879 P 2,818,271

 -108 -

7. CATEGORIES AND OFFSETTING OF FINANCIAL ASSETS AND FINANCIAL

LIABILITIES
7.1 Comparison of Carrying Amounts and Fair Values
The carrying amounts and fair values of the categories of financial assets and financial liabilities
presented in the statements of financial position are shown below and in the succeeding pages.
BDO Unibank Group
2021
Classes
At Amortized At Fair Carrying Fair
Cost Value Amount Value
Financial assets
At amortized cost:
Cash and other cash items P 69,105 P - P 69,105 P 69,105
Due from BSP 304,906 - 304,906 304,907
Due from other banks 70,092 - 70,092 70,092
Loans and other receivables 2,450,903 - 2,450,903 2,460,214
Other resources 7,460 - 7,460 7,460
Investment securities 397,534 - 397,534 399,761
Financial assets at FVTPL - 47,934 47,934 47,934
Financial assets at FVOCI - 170,793 170,793 170,793

P 3,300,000 P 218,727 P 3,518,727 P 3,530,266

Financial liabilities
At amortized cost:
Deposit liabilities P 2,820,896 P - P 2,820,896 P 2,861,596
Bills payable 204,431 - 204,431 206,988
Insurance contract liabilities 65,328 - 65,328 65,328
Other liabilities 91,875 - 91,875 91,875
At fair value
Other liabilities - 5,742 5,742 5,742

P 3,182,530 P 5,742 P 3,188,272 P 3,231,529

 -109 -

BDO Unibank Group

2020
Classes
At Amortized At Fair Carrying Fair
Cost Value Amount Value
Financial assets
At amortized cost:
Cash and other cash items P 74,851 P - P 74,851 P 74,851
Due from BSP 308,636 - 308,636 308,627
Due from other banks 65,289 - 65,289 65,289
Loans and other receivables 2,301,981 - 2,301,981 2,306,593
Other resources 9,262 - 9,262 9,262
Investment securities at 286,819 - 286,819 300,168
Financial assets at FVTPL - 37,110 37,110 37,110
Financial assets at FVOCI - 184,881 184,881 184,881

P 3,046,838 P 221,991 P 3,268,829 P 3,286,781

Financial liabilities
At amortized cost:
Deposit liabilities P 2,610,151 P - P 2,610,151 P 2,653,290
Bills payable 209,744 - 209,744 213,381
Insurance contract liabilities 58,410 - 58,410 58,410
Other liabilities 89,611 - 89,611 89,611
At fair value
Other liabilities - 4,129 4,129 4,129

P 2,967,916 P 4,129 P 2,972,045 P 3,018,821

Parent Bank
2021
Classes
At Amortized At Fair Carrying Fair
Cost Value Amount Value

Financial assets
At amortized cost:
Cash and other cash items P 66,440 P - P 66,440 P 66,440
Due from BSP 302,660 - 302,660 302,661
Due from other banks 64,349 - 64,349 64,349
Loans and other receivables 2,399,983 - 2,399,983 2,412,229
Other resources 6,752 - 6,752 6,752
Investment securities 377,382 - 377,382 379,266
Financial assets at FVTPL - 4,616 4,616 4,616
Financial assets at FVOCI - 115,965 115,965 115,965

P 3,217,566 P 120,581 P 3,338,147 P 3,352,278

 -110 -

Parent Bank

2021
Classes
At Amortized At Fair Carrying Fair
Cost Value Amount Value

Financial liabilities
At amortized cost:
Deposit liabilities P 2,751,715 P - P 2,751,715 P 2,787,683
Bills payable 196,174 - 196,174 198,756
Other liabilities 82,917 - 82,917 82,917
At fair value
Other liabilities - 2,462 2,462 2,462

P 3,030,806 P 2,462 P 3,033,268 P 3,071,818

2020
Classes
At Amortized At Fair Carrying Fair
Cost Value Amount Value

Financial assets
At amortized cost:
Cash and other cash items P 72,301 P - P 72,301 P 72,301
Due from BSP 305,079 - 305,079 305,069
Due from other banks 63,281 - 63,281 63,281
Loans and other receivables 2,259,686 - 2,259,686 2,266,579
Other resources 8,834 - 8,834 8,834
Investment securities 267,672 - 267,672 283,067
Financial assets at FVTPL - 4,862 4,862 4,862
Financial assets at FVOCI - 126,922 126,922 126,922

P 2,976,853 P 131,784 P 3,108,637 P 3,130,915

Financial liabilities
At amortized cost:
Deposit liabilities P 2,548,291 P - P 2,548,291 P 2,587,223
Bills payable 202,867 - 202,867 208,284
Other liabilities 81,914 - 81,914 81,914
At fair value
Other liabilities - 2,001 2,001 2,001

P 2,833,072 P 2,001 P 2,835,073 P 2,879,422

 -111 -

7.2 Fair Value Hierarchy

In accordance with PFRS 13, Fair Value Measurement, the fair value of financial assets and
financial liabilities and non-financial assets which are measured at fair value on a recurring or
non-recurring basis and those assets and liabilities not measured at fair value but for which fair
value is disclosed in accordance with other relevant PFRS, are categorized into three levels
based on the significance of inputs used to measure the fair value. The fair value hierarchy has
the following levels:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that
an entity can access at the measurement date;

Level 2: inputs other than quoted prices included within Level 1 that are observable for
the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices);
and,

Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable inputs).

The level within which the financial asset or financial liability is classified is determined based
on the lowest level of significant input to the fair value measurement.
For purposes of determining the market value at Level 1, a market is regarded as active if
quoted prices are readily and regularly available from an exchange, dealer, broker, industry
group, pricing service, or regulatory agency, and those prices represent actual and regularly

For investments which do not have quoted market price, the fair value is determined by using
generally acceptable pricing models and valuation techniques or by reference to the current
market value of another instrument which is substantially the same after taking into account
the related credit risk of counterparties, or is calculated based on the expected cash flows of
the underlying net asset base of the instrument.
When BDO Unibank Group uses valuation technique, it maximizes the use of observable
market data where it is available and relies as little as possible on entity specific estimates. If all
significant inputs required to determine the fair value of an instrument are observable, the
instrument is included in Level 2. Otherwise, it is included in Level 3.
 -112 -

7.3 Financial Instruments Measured at Fair Value

The financial assets and financial liabilities as of December 31, 2021 and 2020 are grouped into
the fair value hierarchy as presented in the tables below and in the succeeding pages.

Unquoted equity securities consist of preferred and common shares of various unlisted local
companies.
BDO Unibank Group

Notes Level 1 Level 2 Level 3 Total

December 31, 2021

Resources:
Financial assets at FVTPL: 10.1
Equity securities - quoted P 28,752 P 2,844 P - P 31,596
Government debt securities 5,427 - - 5,427
Corporate debt securities 1,086 3,593 - 4,679
Derivative financial assets - 6,232 - 6,232
35,265 12,669 - 47,934

Financial assets at FVOCI: 10.2

Government debt securities 110,182 - - 110,182
Corporate debt securities 55,279 - - 55,279
Equity securities - quoted 4,722 288 - 5,010
Equity securities - not quoted - - 322 322
170,183 288 322 170,793

P 205,448 P 12,957 P 322 P 218,727

Liabilities
Derivatives with negative
fair values 21 P 91 P 5,651 P - P 5,742

December 31, 2020

Resources:
Financial assets at FVTPL: 10.1
Equity securities - quoted P 21,641 P 1,821 P - P 23,462
Government debt securities 5,401 - - 5,401
Corporate debt securities 834 2,945 - 3,779
Derivative financial assets - 4,468 - 4,468
27,876 9,234 - 37,110

Financial assets at FVOCI: 10.2

Government debt securities 117,663 - - 117,663
Corporate debt securities 56,896 - - 56,896
Equity securities - quoted 9,829 234 - 10,063
Equity securities - not quoted - - 259 259
184,388 234 259 184,881

P 212,264 P 9,468 P 259 P 221,991

Liabilities
Derivatives with negative
fair values 21 P 82 P 4,047 P - P 4,129
 -113 -

Parent Bank

Notes Level 1 Level 2 Level 3 Total

December 31, 2021

Resources:
Financial assets at FVTPL: 10.1
Government debt securities P 1,919 P - P - P 1,919
Derivative financial assets - 2,469 - 2,469
Corporate debt securities 227 - - 227
Equity securities - quoted 1 - - 1
2,147 2,469 - 4,616

Financial assets at FVOCI: 10.2

Government debt securities 71,798 - - 71,798
Corporate debt securities 42,297 - - 42,297
Equity securities - quoted 1,306 282 - 1,588
Equity securities - not quoted - - 282 282
115,401 282 282 115,965

P 117,548 P 2,751 P 282 P 120,581

Liabilities
Derivatives with negative
fair values 21 P 91 P 2,371 P - P 2,462

December 31, 2020

Resources:
Financial assets at FVTPL: 10.1
Government debt securities P 2,793 P - P - P 2,793
Derivative financial assets - 1,769 - 1,769
Corporate debt securities 299 - - 299
Equity securities - quoted 1 - - 1
3,093 1,769 - 4,862

Financial assets at FVOCI: 10.2

Government debt securities 80,464 - - 80,464
Corporate debt securities 41,384 - - 41,384
Equity securities - quoted 4,626 229 - 4,855
Equity securities - not quoted - - 219 219
126,474 229 219 126,922

P 129,567 P 1,998 P 219 P 131,784

Liabilities
Derivatives with negative
fair values 21 P 82 P 1,919 P - P 2,001

There have been no significant transfers among Levels 1 and 2 in the reporting periods.
Discussed below and in the succeeding page is the information about how fair values of the
classes of financial assets are determined.

(a) Equity securities

(i) Quoted equity securities classified as financial assets at FVTPL or financial assets at
FVOCI have fair values that were determined based on their closing prices on the
PSE. These instruments are included in Level 1.
 -114 -

Financial assets at FVTPL included in Level 2 pertain to investments in Unit

Investment Trust Funds (UITFs). The fair value of these financial assets were
derived using the net asset value per unit (computed by dividing the net asset value
of the fund by the number of outstanding units at the end of the reporting period),
as published by banks and the Investment Company Association of the Philippines.

Golf club shares classified as financial assets at FVOCI are included in Level 2 as
their prices are not derived from market considered as active due to lack of trading
activities among market participants at the end or close to the end of the reporting
period.

(ii) Unquoted equity securities consist of preferred shares and common shares of various
unlisted local companies. For unquoted preferred shares, the fair value is determined
based on their discounted amount of estimated future cash flows expected to be
received or paid, or based on their cost which management estimates to approximate
their fair values. Further, unlisted common share which are classified as financial
assets at FVOCI securities, the fair value is determined by using generally acceptable
pricing models and valuation techniques or by reference to the current market value of
another instrument which is substantially the same after taking into account the related
risk of counterparties, or is calculated based on the expected cash flows of the
underlying net asset base of the instrument. These instruments are included in Level 3.

(b) Debt securities

The fair value of the debt securities of BDO Unibank Group and the Parent Bank,
which are categorized within Level 1 and Level 2, is discussed below.

(i) Fair values of peso-denominated government debt securities issued by the Philippine
government, are determined based on the reference price per Bloomberg which used
BVAL. These BVAL reference rates are computed based on the weighted price
derived using an approach based on a combined sequence of proprietary BVAL
algorithms of direct observations or observed comparables.

(ii) For corporate and other quoted debt securities, fair value is determined to be the
current mid-price, which is computed as the average of ask and bid prices as
appearing on Bloomberg.

(c) Derivatives

The fair values of Republic of the Philippines (ROP) warrants which are categorized
within Level 1, is determined to be the current mid-price based on the last trading
transaction as defined by third-party market makers. The fair value of other derivative
financial instruments, which are categorized within Level 2, is determined through
valuation techniques using the net present value computation [see Note 3.2(c)].
 -115 -

7.4 Financial Instruments Measured at Amortized Cost for which Fair Value is
Disclosed
The table below and in the succeeding pages summarizes the fair value hierarchy of BDO
measured
at amortized cost in the statements of financial position but for which fair value is disclosed.

BDO Unibank Group

Level 1 Level 2 Level 3 Total

December 31, 2021

Resources:
Cash and other cash items P 69,105 P - P - P 69,105
Due from BSP 304,907 - - 304,907
Due from other banks 70,092 - - 70,092
Investment securities at amortized cost 399,761 - - 399,761
Loans and other receivables 271 - 2,459,943 2,460,214
Other resources 6,180 - 1,280 7,460

P 850,316 P - P 2,461,223 P 3,311,539

Liabilities:
Deposit liabilities P - P - P 2,861,596 P 2,861,596
Bills payable - 152,235 54,753 206,988
Insurance contract liabilities - - 65,328 65,328
Other liabilities - - 91,875 91,875

P - P 152,235 P 3,073,552 P 3,225,787

December 31, 2020

Resources:
Cash and other cash items P 74,851 P - P - P 74,851
Due from BSP 308,627 - - 308,627
Due from other banks 65,289 - - 65,289
Investment securities at amortized cost 300,168 - - 300,168
Loans and other receivable 239 - 2, 306,354 2,306,593
Other resources 8,795 - 467 9,262

P 757,969 P - P 2,306,821 P 3,064,790

Liabilities:
Deposit liabilities P - P - P 2,653,290 P 2,653,290
Bills payable - 164,748 48,633 213,381
Insurance contract liabilities - - 58,410 58,410
Other liabilities - - 89,611 89,611

P - P 164,748 P 2,849,944 P 3,014,692

 -116 -

Parent Bank

Level 1 Level 2 Level 3 Total

December 31, 2021

Resources:
Cash and other cash items P 66,440 P - P - P 66,440
Due from BSP 302,661 - - 302,661
Due from other banks 64,349 - - 64,349
Investment securities at amortized cost 379,266 - - 379,266
Loans and other receivables - - 2,412,229 2,412,229
Other resources 5,784 - 968 6,752

P 818,500 P - P 2,413,197 P 3,231,697

Liabilities:
Deposit liabilities P - P - P2,787,683 P 2,787,683
Bills payable - 152,235 46,521 198,756
Other liabilities - - 82,917 82,917

P - P 152,235 P 2,917,121 P3,069,356

December 31, 2020

Resources:
Cash and other cash items P 72,301 P - P - P 72,301
Due from BSP 305,069 - - 305,069
Due from other banks 63,281 - - 63,281
Investment securities at amortized cost 283,067 - - 283,067
Loans and other receivables - - 2,266,579 2,266,579
Other resources 8,756 - 78 8,834

P 732,474 P - P 2,266,657 P 2,999,131

Liabilities:
Deposit liabilities P - P - P 2,587,223 P 2,587,223
Bills payable - 164,748 43,536 208,284
Other liabilities - - 81,914 81,914

P - P 164,748 P 2,712,673 P 2,877,421

For financial assets and financial liabilities, management considers that the carrying amounts of
those short-term financial instruments approximate their fair values. The following are the
methods used to determine the fair value of financial assets and financial liabilities presented in
the statements of financial position at their amortized cost.

(a) Cash and Other Cash Items

Cash consists primarily of funds in the form of Philippine currency notes and coins in
the BDO Unibank Group and the Parent Bank
tellers, including automated teller machines (see Note 8).

Other cash items includes cash items other than currency and coins on hand
(see Note 15) such as checks drawn on the other banks or other branches that were
received after the clearing cut-off time until
the close of the regular banking hours. Carrying amounts approximate fair values in view
of the relatively short-term maturities of these instruments.
 -117 -

(b) Due from BSP and Other Banks

Due from BSP pertains to deposits made by BDO Unibank Group to the BSP for
clearing and reserve requirements. The fair value of floating rate placements and
overnight deposits is their carrying amount. The estimated fair value of fixed
interest-bearing deposits is based on discounted cash flows using prevailing money
market interest rates for debts with similar credit risk and remaining maturity, which for
short-term deposits approximate the nominal value.

(c) Investment Securities at Amortized Cost

The fair value of investment securities at amortized cost is determined by direct reference
to published price quoted in an active market for traded debt securities.

(d) Loans and Other Receivables

Loans and other receivables are net of provisions for impairment. The estimated fair
value of loans and receivables represents the discounted amount of estimated future cash
flows expected to be received. Expected cash flows are discounted at current market
rates to determine fair value.

(e) Deposits and Borrowings

The estimated fair value of demand deposits with no stated maturity, which includes
non-interest-bearing deposits, is the amount repayable on demand. The estimated fair
value of long-term fixed interest-bearing deposits is based on discounted cash flows
using interest rates for new debts with similar remaining maturity. The fair value of
Bills Payable under Level 2 is computed based on the average of ask and bid prices as
appearing on Bloomberg. For Bills Payable categorized within Level 3, the BDO
Unibank Group and the Parent Bank classify financial instruments that have no quoted
prices or observable market data where reference of fair value can be derived; hence, fair
value is determined based on their discounted amount of estimated future cash flows
expected to be received or paid, or based on their cost which management estimates to
approximate their fair values.

(f) Other Resources and Liabilities

Due to their short duration, the carrying amounts of other resources and liabilities in the
statements of financial position are considered to be reasonable approximation of their
fair values.
 -118 -

7.5 Fair Value Measurement for Non-financial Assets

about the fair value hierarchy as of December 31, 2021 and 2020 are shown below.

BDO Unibank Group

Level 1 Level 2 Level 3 Total

December 31, 2021

Investment properties
Land P - P - P 27,349 P 27,349
Building and improvements - - 12,786 12,786
Non-current assets held for sale - - 1,825 1,825

P - P - P 41,960 P 41,960

December 31, 2020

Investment properties
Land P - P - P 20,482 P 20,482
Building and improvements - - 12,674 12,674
Non-current assets held for sale - - 1,039 1,039

P - P - P 34,195 P 34,195

Parent Bank

Level 1 Level 2 Level 3 Total

December 31, 2021

Investment properties
Land P - P - P 20,819 P 20,819
Building and improvements - - 11,917 11,917
Non-current assets held for sale - - 1,824 1,824

P - P - P 34,560 P 34,560

December 31, 2020

Investment properties
Land P - P - P 18,802 P 18,802
Building and improvements - - 12,145 12,145
Non-current assets held for sale - - 1,039 1,039

P - P - P 31,986 P 31,986
 -119 -

The fair value of the investment properties of the BDO Unibank Group and the Parent Bank
as of December 31, 2021 and 2020 (see Note 14) was determined on the basis of a valuation
carried out on the respective dates by either an independent or internal appraiser having
appropriate qualifications and recent experience in the valuation of properties in the relevant
locations. To some extent, the valuation process was conducted by the appraisers in discussion
with the management of the BDO Unibank Group and the Parent Bank with respect to
determination of the inputs such as size, age and condition of the land and buildings and the
comparable prices in the corresponding property location.

In estimating the fair value of the properties, management takes into account the market

properties of the
BDO Unibank Group and the Parent Bank indicated above is their current use. The fair value
discussed above as determined by the appraisers were used by the BDO Unibank Group and
the Parent Bank in determining the fair value of investment properties and non-current assets
held for sale.

The fair value of these investment properties and assets held for sale was determined based on
the following approaches:

(a) Fair Value Measurement for Land

The Level 3 fair value of land was derived using the observable recent prices of the
reference properties, which were adjusted for differences in key attributes such as
property size, zoning and accessibility. The most significant input into this valuation
approach is the price per square foot; hence, the higher the price the higher the fair
value. On the other hand, if fair value of the land was derived using the market
comparable approach that reflects the recent transaction prices for similar properties in
nearby locations, fair value is included in Level 2. Under this approach, when sales prices
of comparable land in close proximity are used in the valuation of the subject property,
minor adjustments on the price is made to consider peculiarities of the property with that
of the benchmark property.

(b) Fair Value Measurement for Buildings and Improvements

The Level 3 fair value of the buildings and improvements was determined using the
replacement cost approach that reflects the cost to a market participant to construct an
asset of comparable usage, constructions standards, design and lay-out, adjusted for
obsolescence. The more significant inputs used in the valuation include direct and

materials and equipment, surveying and permit costs, electricity and utility costs,
architectural and engineering fees, insurance and legal fees. These inputs were derived

indices. Under this approach, higher estimated costs used in the valuation will result in
higher fair value of the properties.

There has been no change to the valuation techniques used by the BDO Unibank Group
during the year for its non-financial assets. Also, there were no transfers into or out of
Level 3 fair value hierarchy in 2021 and 2020.
 -120 -

(c) Fair Value Measurement for Assets Held for Sale

The fair value of assets held for sale is determined based on the recent experience in the
valuation of similar properties. The fair value, determined under Level 3 measurement,
was derived using the market data approach that reflects that recent transaction prices for
similar properties, adjusted for differences in property age and condition.

There has been no change to the valuation techniques used by BDO Unibank Group during the
year for its non-financial assets. Further, there were no transfers into or out of Level 3 fair value
hierarchy in 2021 and 2020.

7.6 Offsetting Financial Assets and Financial Liabilities

The following financial assets of the BDO Unibank Group and the Parent Bank with amounts
presented in the statements of financial position as of December 31, 2021 and 2020 are subject
to offsetting, enforceable master netting arrangements and similar agreements.
BDO Unibank Group

Financial
Liabilities
Financial Available Collateral
Assets for Set-off Received Net Amount

December 31, 2021

Financial assets at FVTPL:

Currency swaps P 617 P 572 P - P 45
Interest rate swaps 64 59 - 5

Loans and receivables

Receivables from customers 29,497 - 26,216 3,281

P 30,178 P 631 P 26,216 P 3,331

December 31, 2020

Financial assets at FVTPL:

Currency swaps P 396 P 371 P - P 25
Interest rate swaps 116 102 - 14

Loans and receivables

Receivables from customers 43,976 - 40,904 3,072

P 44,488 P 473 P 40,904 P 3,111

Parent Bank

December 31, 2021

Financial assets at FVTPL:

Currency swaps P 5 P 5 P - P -
Interest rate swaps 54 53 - 1

Loans and receivables

Receivables from customers 26,045 - 26,045 -

P 26,104 P 58 P 26,045 P 1
 -121 -

Parent Bank

Financial
Liabilities
Financial Available Collateral
Assets for Set-off Received Net Amount

December 31, 2020

Financial assets at FVTPL:

Currency swaps P 1 P 1 P - P -
Interest rate swaps 104 95 - 9

Loans and receivables

Receivables from customers 40,744 - 40,744 -

P 40,849 P 96 P 40,744 P 9

The currency forwards and interest rate swaps relate to accrued interest receivable and accrued
interest payable subject to enforceable master netting arrangements but were not
set-off and presented at gross in the statements of financial position.

The following financial liabilities with net amounts presented in the statements of financial
position of the BDO Unibank Group and the Parent Bank are subject to offsetting,
enforceable master netting arrangements and similar agreements.
BDO Unibank Group

Financial
Assets
Financial Available Collateral
Liabilities for Set-off Given Net Amount

December 31, 2021

Deposit liabilities P 32,393 P 26,216 P - P 6,177

Bills payable 1,088 - 1,088 -

Derivatives with negative

fair values:
Currency swaps 629 572 - 57
Interest rate swaps 72 59 - 13

P 34,182 P 26,847 P 1,088 P 6,247

December 31, 2020

Deposit liabilities P 85,836 P 40,904 P - P 44,932

Derivatives with negative

fair values:
Currency swaps 648 371 - 277
Interest rate swaps 102 102 - -
P 88,257 P 43,482 P - P 44,775
 -122 -

Parent Bank

Financial
Assets
Financial Available Collateral
Liabilities for Set-off Given Net Amount

December 31, 2021

Deposit liabilities P 32,222 P 26,045 P - P 6,177

Derivatives with negative

fair values:
Currency swaps 62 5 - 57
Interest rate swaps 66 53 - 13

P 32,350 P 26,103 P - P 6,247

December 31, 2020

Deposit liabilities P 85,676 P 40,744 P - P 44,932

Derivatives with negative

fair values:
Currency swaps 278 1 - 277
Interest rate swaps 95 95 - -

P 86,049 P 40,840 P - P 45,209

For the financial assets and financial liabilities subject to enforceable master netting
arrangements or similar arrangements above, each agreement between the BDO Unibank
Group and counterparties allows for net settlement of the relevant financial assets and
financial liabilities when both elect to settle on a net basis. In the absence of such an
election, financial assets and financial liabilities will be settled on a gross basis, however,
each party to the master netting agreement or similar agreement will have the option to
settle all such amounts on a net basis in the event of default of the other party.

8. CASH AND BALANCES WITH THE BSP

These accounts are composed of the following:

BDO Unibank Group Parent Bank

2021 2020 2021 2020

Cash and other cash items P 69,105 P 74,851 P 66,440 P 72,301

Due from BSP:
Mandatory reserves 271,953 254,527 269,707 252,440
Other than mandatory
reserves 32,953 54,109 32,953 52,639

304,906 308,636 302,660 305,079

P 374,011 P 383,487 P 369,100 P 377,380

 -123 -

Mandatory reserves represent the balance of the deposit accounts maintained with the
BSP to meet reserve requirements and to serve as clearing accounts for interbank claims
(see Note 17).

The Parent Bank opened a Special Savings Account (SSA) with the BSP to comply with
InstaPay facility requirement.

As of December 31, 2021 and 2020, the balance of this account amounted to P770 and P461
and is presented as part of Due from BSP.

Due from BSP, excluding mandatory reserves which has no interest, bears annual interest rate
as follows:

2021 2020 2019

1.50% 1.96% 1.50% 4.13% 0.00% 4.75%

The total interest income earned amounted to P1,487, P1,892 and P422 in 2021, 2020 and
2019 statements of income, and P1,483, P1,886
and P417 in 2021, 2020 and 2019 statements of income
(see Note 23).

Cash and other cash items and balances with the BSP are included in cash and cash equivalents
for statements of cash flows purposes.

9. DUE FROM OTHER BANKS

The balance of this account represents deposits with the following:

BDO Unibank Group Parent Bank

2021 2020 2021 2020

Foreign banks P 66,185 P 64,156 P 63,193 P 62,615

Local banks 3,907 1,133 1,156 666

P 70,092 P 65,289 P 64,349 P 63,281

The breakdown of this account as to currency follows:

BDO Unibank Group Parent Bank

2021 2020 2021 2020
U.S. dollars P 57,669 P 56,867 P 54,480 P 55,707
Other foreign currencies 10,732 8,010 9,708 7,308
Philippine pesos 1,691 412 161 266
P 70,092 P 65,289 P 64,349 P 63,281
 -124 -

Annual interest rates on these deposits range from:

2021 2020 2019

BDO Unibank Group 0.00% 1.50% 0.00% 3.38% 0.00% 5.75%

Parent Bank 0.00% 1.00% 0.00% 1.00% 0.00% 2.00%

There are deposits such as current accounts, which do not earn interest. The total interest
income earned amounted to P67, P266 and P959 in 2021, 2020, and 2019, respectively, in the
statements of income, and P50, P234 and P817, in 2021, 2020, and
2019, statements of income (see Note 23). Due from other
banks are included in cash and cash equivalents for statements of cash flows purposes.

10. TRADING AND INVESTMENT SECURITIES

The components of this account are shown below.
BDO Unibank Group Parent Bank
Note 2021 2020 2021 2020

Financial assets
at FVTPL 10.1 P 47,934 P 37,110 P 4,616 P 4,862
Financial assets
at FVOCI 10.2 170,793 184,881 115,965 126,922
Investment securities
at amortized
cost - net 10.3 397,534 286,819 377,382 267,672
P 616,261 P 508,810 P 497,963 P 399,456

10.1 Financial Assets at FVTPL

This account is composed of the following:
BDO Unibank Group Parent Bank
2021 2020 2021 2020
Derivative financial assets P 6,232 P 4,468 P 2,469 P 1,769
Government debt securities 5,427 5,401 1,919 2,793
Corporate debt securities 4,679 3,779 227 299
16,338 13,648 4,615 4,861
Equity securities - quoted 31,596 23,462 1 1
P 47,934 P 37,110 P 4,616 P 4,862
 -125 -

All financial assets at FVTPL are held for trading. The following table shows net income (loss)
contributed by financial assets at FVTPL to the BDO Unibank Group and the Parent Bank.

BDO Unibank Group

Notes 2021 2020 2019
Interest income 23 P 92 P 122 P 197

Trading gain (loss) - net 25 ( 214) 1,261 1,606

Dividend income 25 118 71 72
Foreign exchange gain (loss) 25 71 ( 214)( 449 )
Total other income (loss) ( 25 ) 1,118 1,229
Total other expenses 1 2 7
Net income P 66 P 1,238 P 1,419

Parent Bank
Notes 2021 2020 2019
Interest income 23 P 59 P 84 P 87
Trading gain (loss) - net 25 ( 648 ) 1,422 267

Net income (loss) (P 589) P 1,506 P 354

Effective interest rates of debt securities at FVTPL of both the BDO Unibank Group and the
Parent Bank range from:

2021 2020 2019

Government debt securities 0.88% 10.63% 0.63% 10.63% 0.88% 12.13%

Corporate debt securities 0.09% 8.51% 0.09% 8.51% 0.09% 8.51%

Foreign currency-denominated securities amounted to P6,622 and P5,701 as of December 31,

2021 and 2020, ,
and P2,
statements of financial position.
Derivative instruments used by BDO Unibank Group include foreign currency and interest
rate forwards/futures, foreign currency and interest rate swaps. Foreign currency and interest
rate forwards/futures represent commitments to purchase or sell or contractual obligations to
receive or pay a new amount based on changes in currency rates or interest rates on a future
date at a specified price. Foreign currency and interest rate swaps are commitments to
exchange one set of cash flows for another. Income derived from these derivative instruments
are part of trading gains/(losses) (see Note 25).
 -126 -

The aggregate contractual or notional amount of derivative financial instruments and the
total fair values of derivative financial assets and financial liabilities are shown below
[see Notes 21 and 27(d)(i)(4)].

2021 2020
Notional Fair Values Notional Fair Values
Amount Assets Liabilities Amount Assets Liabilities

BDO Unibank Group

Currency forwards/futures P 313,246 P 2,091 P 2,118 P 277,684 P 1,377 P 1,517

Cross currency swaps 54,243 4,041 3,440 44,738 2,882 2,395
Interest rate swaps 13,986 99 93 15,912 209 135
Interest rate future sold trading 1,661 1 - 240 - 1
ROP warrants 8,475 - 91 8,475 - 81

P 391,611 P 6,232 P 5,742 P 347,049 P 4,468 P 4,129

Parent Bank

Currency forwards/futures P 309,373 P 2,086 P 2,045 P 272,794 P 1,216 P 1,437

Cross currency swaps 8,792 329 259 8,663 449 388
Interest rate swaps 8,986 54 66 8,508 104 95
ROP warrants 8,475 - 92 8,475 - 81

P 335,626 P 2,469 P 2,462 P 298,440 P 1,769 P 2,001

Certain financial assets at FVTPL of the BDO Unibank Group and the Parent Bank amounting
to P681 and P59, respectively, in 2021 and P513 and P105, respectively, in 2020, are subject to
offsetting against the related derivatives with negative fair values of the BDO Unibank Group
and the Parent Bank amounting to P702 and P129, respectively, in 2021 and P750 and P373,
respectively, in 2020. This indicates an enforceable master netting arrangements and similar
agreements with an intention to settle on a net basis (see Note 7.6).

10.2 Financial Assets at FVOCI

The details of the carrying amounts of these financial assets are as follows:
BDO Unibank Group Parent Bank
2021 2020 2021 2020

Government debt securities P 110,182 P 117,663 P 71,798 P 80,464

Corporate debt securities 55,279 56,896 42,297 41,384
Equity securities:
Quoted 5,010 10,063 1,588 4,855
Not quoted 322 259 282 219

P 170,793 P 184,881 P 115,965 P 126,922

As to currency, this account is composed of the following:

BDO Unibank Group Parent Bank

2021 2020 2021 2020

Foreign currencies P 86,804 P 88,748 P 74,197 P 71,907

Philippine peso 83,989 96,133 41,768 55,015

P 170,793 P 184,881 P 115,965 P 126,922

 -127 -

The maturity profile of this account is presented below.

BDO Unibank Group Parent Bank

2021 2020 2021 2020

Within one year P 17,781 P 61,715 P 13,743 P 48,069

One to five years 64,349 69,895 46,361 49,716
Beyond five years 88,663 53,271 55,861 29,137

P 170,793 P 184,881 P 115,965 P 126,922

Effective interest rates of financial assets at FVOCI range from:

2021 2020 2019

BDO Unibank Group
Government debt securities 1.65% 12.13% 0.00% 12.13% 1.75% 12.13%
Corporate debt securities 2.13% 8.25% 2.13% 8.50% 2.38% 9.00%
Parent Bank
Government debt securities 1.65% 10.63% 2.63% 10.63% 2.63% 10.63%
Corporate debt securities 2.13% 7.38% 2.13% 8.50% 2.38% 9.00%

The fair values of government debt, quoted equity and corporate debt securities have been
determined directly by reference to published prices generated in an active market except for
unquoted equity securities (see Note 7.3).

The reconciliation of the carrying amounts of financial assets at FVOCI is as follows:

BDO Unibank Group Parent Bank
2021 2020 2021 2020

Balance at beginning of year P 184,881 P 145,239 P 126,922 P 93,800

Additions 476,166 197,175 446,867 162,827
Disposals ( 489,677) ( 158,897) ( 459,326 ) ( 129,554 )
Unrealized fair value gains (losses) ( 5,230) 4,647 ( 2,524 ) 3,250
Foreign currency revaluation 4,945 ( 4,349) 4,210 ( 3,402 )
Realized of fair value gains (losses)
on FVOCI ( 309) 1,062 ( 201 ) 1
Reclassification 28 - 28 -
Deferred tax liability ( 11) 4 ( 11) -

Balance at end of year P 170,793 P 184,881 P 115,965 P 126,922

 -128 -

The reconciliation of unrealized fair value losses on financial assets at FVOCI reported under
equity is shown below.
BDO Unibank Group Parent Bank
2021 2020 2021 2020

Balance at beginning of year P 4,008 (P 1,741 ) P 2,459 (P 828 )

Changes on unrealized fair value gains

(losses) during the year:
Fair value gains (losses)
during the year ( 5,230 ) 4,647 ( 2,524 ) 3,250
Expected credit losses
on FVOCI securities ( 88 ) 37 ( 71 ) 36
Deferred tax liability ( 11 ) 3 ( 11 ) -
( 1,321 ) 2,946 ( 147 ) 2,458

Realized fair value (gains) loss on

securities disposed
during the year - net ( 309 ) 1,062 ( 201 ) 1

Balance at end of year (P 1,630 ) P 4,008 (P 348 ) P 2,459

The Parent Bank disposed FVOCI securities under equity amounting to P3,222 and P323 in
2021 and 2020, respectively, while the BDO Unibank Group disposed a total of FVOCI equity
securities amounting to P5,454 and P3,877 in 2021 and 2020, respectively.

Unrealized fair value gains and losses recognized in the NUGL account is not reclassified to
profit or loss but is reclassified directly to Surplus Free account except for those debt securities
classified as FVOCI wherein fair value changes are recycled back to profit or loss.

Impairment losses (recovery) recognized for FVOCI debt securities presented in NUGL for
BDO Unibank Group and the Parent Bank amounted to (P88) and (P71), respectively, in 2021,
P37 and P36, respectively, in 2020 and P13 and P5, respectively, in 2019. Total accumulated
impairment losses presented in NUGL for the BDO Unibank Group and the Parent Bank
amounted to P50 and P37, respectively, as of December 31, 2021, and P137 and P108,
respectively, as of December 31, 2020 (see Note 4.3.5).

10.3 Investment Securities at Amortized Cost

This account consists of:

BDO Unibank Group Parent Bank

Note 2021 2020 2021 2020
Government debt
securities P 334,935 P 228,134 P 320,925 P 214,471
Corporate debt
securities:
Quoted 59,255 55,982 56,523 53,430
Not quoted 4,815 4,293 1,389 1,342
399,005 288,409 378,837 269,243
Allowance for
impairment 16 ( 1,471) ( 1,590) ( 1,455)( 1,571 )

P 397,534 P 286,819 P 377,382 P 267,672

 -129 -

As to currency, this account is composed of the following:

BDO Unibank Group Parent Bank

2021 2020 2021 2020
Foreign currencies P 164,529 P 153,492 P 159,235 P 146,757
Philippine peso 233,005 133,327 218,147 120,915

P 397,534 P 286,819 P 377,382 P 267,672

The maturity profile of this account is presented below.

BDO Unibank Group Parent Bank

2021 2020 2021 2020
Less than one year P 29,285 P 40,119 P 27,101 P 34,075
One to five years 166,980 170,135 155,595 162,185
Beyond five years 201,269 76,565 194,686 71,412

P 397,534 P 286,819 P 377,382 P 267,672

The reconciliation of the carrying amounts of investment securities at amortized cost is as

follows:
BDO Unibank Group Parent Bank
2021 2020 2021 2020

Balance at beginning of year P 286,819 P 263,585 P 267,672 P 247,308

Additions 169,502 116,777 161,191 111,208
Maturities and disposals ( 68,042) ( 85,870) ( 60,412) ( 83,501)
Foreign currency gains - net 9,063 ( 7,568) 8,741 ( 7,247 )
Impairment loss 192 ( 105) 190 ( 96 )

Balance at end of year P 397,534 P 286,819 P 377,382 P 267,672

Effective interest rates of investment securities at amortized cost for both BDO Unibank
Group and Parent Bank range from:

2021 2020 2019

BDO Unibank Group
Government debt securities 0.18% 18.25% 0.00% 18.25% 0.18% 18.25%
Corporate debt securities 2.13% 8.41% 0.00% 9.50% 2.38% 9.50%
Parent Bank
Government debt securities 0.18% 18.25% 0.18% 18.25% 0.18% 18.25%
Corporate debt securities 2.13% 7.88% 0.00% 9.50% 2.38% 9.50%
 -130 -

The BDO Unibank Group and the Parent Bank disposed of certain debt securities from its
amortized cost portfolio amounting to P1,565 and P285, respectively, resulting in
a trading net gain amounting to P78 and P30 in 2021, while in 2020, P29,637 was disposed
resulting in a net trading gain amounting to P3,546, for both the BDO Unibank Group and
the Parent Bank. The disposal in 2021 was initiated because of the deteriorating credit profile
of the securities sold, while in 2020, the disposal was made to strengthen the liquidity and capital
position of the BDO Unibank Group and the Parent Bank as a buffer against the economic
downturn caused by the COVID-19 pandemic. Management had assessed that such disposals
of the investment securities are consistent with the BDO Unibank Group and the Parent
investment at amortized cost business model with the objective of collecting contractual
cash flows and have qualified under the permitted sale events set forth in the BDO Unibank
Group 9.
The disposal of investment securities was approved by the Investments Committee in
compliance with the documentation requirements of the BSP.

As mentioned in Note 28, certain government debt securities are deposited with the BSP.

11. LOANS AND OTHER RECEIVABLES

This account consists of the following:
BDO Unibank Group Parent Bank
Notes 2021 2020 2021 2020

Receivables from customers:

Loans and discounts 27 P 2,205,151 P 2,099,887 P 2,156,282 P 2,060,614
Credit card receivables 106,789 94,356 106,789 94,356

under letters of credit

and trust receipts 80,217 58,784 80,217 58,784
Bills purchased 8,360 10,864 8,358 10,863
2,400,517 2,263,891 2,351,646 2,224,617
Unearned interests or
discounts ( 324 ) ( 189 ) ( 95 ) ( 122 )
Allowance for impairment 16 ( 65,259 ) ( 56,420 ) ( 63,274 ) ( 53,989 )
( 65,583) ( 56,609 ) ( 63,369 ) ( 54,111 )

2,334,934 2,207,282 2,288,277 2,170,506

Other receivables:
Interbank loans receivables 90,721 66,657 90,721 66,657
Reverse repurchase
agreements 17,095 16,729 15,800 14,135
Accounts receivable 27 8,315 11,527 6,277 9,696
Sales contract receivables 1,283 1,016 1,226 977
Others 1,039 1,201 - -
118,453 97,130 114,024 91,465
Allowance for impairment 16 ( 2,484 ) ( 2,431 ) ( 2,318 ) ( 2,285 )
115,969 94,699 111,706 89,180

P 2,450,903 P 2,301,981 P 2,399,983 P 2,259,686

The maturity profile of receivable from customers (net of unearned interest or discounts)
based on the remaining term is presented below.
BDO Unibank Group Parent Bank
2021 2020 2021 2020

Less than one year P 715,409 P 715,170 P 708,816 P 706,757

One to five years 830,392 752,265 795,591 727,527
Beyond five years 854,392 796,267 847,144 790,211

P 2,400,193 P 2,263,702 P 2,351,551 P 2,224,495

 -131 -

The breakdown of total loans (receivable from customers, net of unearned interests or
discounts) as to type of interest rate follows:

BDO Unibank Group Parent Bank

2021 2020 2021 2020

Variable interest rates P 1,885,493 P 1,813,886 P 1,873,116 P 1,804,381

Fixed interest rates 514,700 449,816 478,435 420,114

P 2,400,193 P 2,263,702 P 2,351,551 P 2,224,495

Annual interest rates ranges from:

2021 2020 2019
Loans and discounts 0.00% 60.96% 0.00% 43.68% 0.00% 49.17%
Other receivables 0.03% 19.00% 0.04% 19.00% 0.01% 19.00%

The total interest income earned amounted to:

BDO Unibank Group
Note 2021 2020 2019
Loans and discounts P 123,545 P 137,590 P 140,044
Other receivables 1,003 1,146 2,864
23 P 124,548 P 138,736 P 142,908
Parent Bank
Note 2021 2020 2019
Loans and discounts P 118,667 P 133,261 P 135,691
Other receivables 899 1,068 2,830

23 P 119,566 P 134,329 P 138,521

Interest income recognized on impaired loans and receivables amounted to P6,046, P4,557
and P804 in 2021, 2020 and 2019, respectively, for the BDO Unibank Group, and P6,025,
P4,353 and P788 in 2021, 2020 and 2019, respectively, for the Parent Bank.

Certain receivables from customers of the BDO Unibank Group and the Parent Bank
amounting to P29,497 and P26,045, respectively, in 2021 and P43,976 and P40,744, respectively,
in 2020, are subject to offsetting with the corresponding collaterals received as a means of
security amounting to P26,216 and P26,045, respectively, in 2021, and P40,904 and P40,744,
respectively, for 2020, indicating a legally enforceable right to offset the recognized amounts
with an intention to settle on a net basis (see Note 7.6).

Impairment losses recognized for loans and receivables for BDO Unibank Group and the
Parent Bank amounted to P17,222 and P17,006, respectively, in 2021, P29,519 and P28,905,
respectively, in 2020, and P5,986 and P5,725, respectively, in 2019 (see Note 16).
 -132 -

12. PREMISES, FURNITURE, FIXTURES AND EQUIPMENT

The gross carrying amounts and accumulated depreciation, amortization and impairment of
premises, furniture, fixtures and equipment at the beginning and end of 2021 and 2020 are
shown below and in the succeeding page.
BDO Unibank Group

Furniture, Leasehold Construction Right-of-

Fixtures and Rights and in Use
Land Equipment Buildings Improvement Progress Assets Total

December 31, 2021

Cost P 8,409 P 27,867 P 24,044 P 8,373 P 1,316 P 16,704 P 86,713
Accumulated
depreciation and
amortization - ( 18,527 ) ( 9,384 ) ( 6,902 ) - ( 6,446 ) ( 41,259 )
Allowance for
Impairment (see Note 16) ( 343 ) - ( 304 ) - - - ( 647 )

Net Carrying Amount P 8,066 P 9,340 P 14,356 P 1,471 P 1,316 P 10,258 P 44,807

December 31, 2020

Cost P 8,405 P 27,194 P 22,792 P 7,823 P 977 P 14,420 P 81,611
Accumulated
depreciation and `
amortization - ( 17,532 ) ( 8,343 ) ( 6,299 ) - ( 4,460 ) ( 36,634 )
Allowance for
Impairment (see Note 16) ( 271 ) - ( 376 ) - - - ( 647 )

Net Carrying Amount P 8,134 P 9,662 P 14,073 P 1,524 P 977 P 9,960 P 44,330

January 1, 2020
Cost P 8,190 P 26,789 P 22,697 P 7,623 P 1,137 P 12,913 P 79,349
Accumulated
depreciation and `
amortization - ( 16,392 ) ( 7,748 ) ( 5,580 ) - ( 2,433 ) ( 32,153 )
Allowance for
Impairment (see Note 16) ( 269 ) - ( 376 ) - - - ( 645 )

Net Carrying Amount P 7,921 P 10,397 P 14,573 P 2,043 P 1,137 P 10,480 P 46,551

Parent Bank

Furniture, Leasehold Construction Right-of-

Fixtures and Rights and in Use
Land Equipment Buildings Improvement Progress Assets Total

December 31, 2021

Cost P 7,669 P 23,434 P 22,734 P 7,497 P 1,314 P 16,252 P 78,900
Accumulated
depreciation and
amortization - ( 15,468 ) ( 8,781 ) ( 6,273 ) - ( 6,296 ) ( 36,818 )
Allowance for
Impairment (see Note 16) ( 197 ) - ( 299 ) - - - ( 496 )

Net Carrying Amount P 7,472 P 7,966 P 13,654 P 1,224 P 1,314 P 9,956 P 41,586

December 31, 2020

Cost P 7,665 P 22,151 P 21,517 P 7,060 P 970 P 14,142 P 73,505
Accumulated
depreciation and
amortization - ( 14,303 ) ( 7,807 ) ( 5,740 ) - ( 4,327 ) ( 32,177 )
Allowance for
Impairment (see Note 16) ( 125 ) - ( 371 ) - - - ( 496 )

Net Carrying Amount P 7,540 P 7,848 P 13,339 P 1,320 P 970 P 9,815 P 40,832

January 1, 2020
Cost P 7,450 P 21,083 P 21,450 P 6,926 P 1,137 P 12,781 P 70,827
Accumulated
depreciation and
amortization - ( 13,047 ) ( 7,285 ) ( 5,118 ) - ( 2,387 ) ( 27,837 )
Allowance for
Impairment (see Note 16) ( 125 ) - ( 371 ) - - - ( 496 )

Net Carrying Amount P 7,325 P 8,036 P 13,794 P 1,808 P 1,137 P 10,394 P 42,494
 -133 -

A reconciliation of the carrying amounts at the beginning and end of 2021

and 2020 of premises, furniture, fixtures and equipment is shown below and in the succeeding
page.
BDO Unibank Group

Furniture, Leasehold Construction Right-of-

Fixtures and Rights and in Use
Land Equipment Buildings Improvement Progress Assets Total

Balance at January 1, 2021,

net of accumulated
depreciation,
amortization and
impairment P 8,134 P 9,662 P 14,073 P 1,524 P 977 P 9,960 P 44,330
Additions 21 2,084 664 568 516 3,216 7,069
Disposals - ( 101 ) ( 47 ) ( 13 ) - - ( 161 )
Reclassifications ( 72 ) 218 721 73 ( 172 ) - 768
Adjustments - - - ( 1) - ( 406 ) ( 407 )
Reversal ( 17 ) - - ( 2) ( 5) - ( 24 )
Foreign exchange revaluation - 1 5 1 4 11
Depreciation and
amortization charges
for the year - ( 2,524 ) ( 1,060 ) ( 679 ) - ( 2,516 ) ( 6,779 )

Balance at December 31,

2021, net of accumulated
depreciation, amortization
and impairment P 8,066 P 9,340 P 14,356 P 1,471 P 1,316 P 10,258 P 44,807

Balance at January 1, 2020,

net of accumulated
depreciation,
amortization and
impairment P 7,921 P 10,397 P 14,573 P 2,043 P 1,137 P 10,480 P 46,551
Additions 17 1,825 291 241 715 1,775 4,864
Disposals ( 2) ( 117 ) ( 6 ) ( 7) - - ( 132 )
Reclassifications 198 195 946 33 ( 875 ) - 497
Adjustments - 7 ( 4) ( 2) - - 1
Reversal - ( 2) - - - - ( 2)
Depreciation and
amortization charges
for the year - ( 2,643 ) ( 1,727 ) ( 784 ) - ( 2,295) ( 7,449)

Balance at December 31,

2020, net of accumulated
depreciation, amortization
and impairment P 8,134 P 9,662 P 14,073 P 1,524 P 977 P 9,960 P 44,330

Parent Bank

Furniture, Leasehold Construction Right-of-

Fixtures and Rights and in Use
Land Equipment Buildings Improvement Progress Assets Total

Balance at January 1, 2021

net of accumulated
depreciation,
amortization and
impairment P 7,540 P 7,848 P 13,339 P 1,320 P 970 P 9,815 P 40,832
Additions 21 1,722 630 425 516 2,951 6,265
Disposals - ( 7) ( 46 ) ( 13 ) - - ( 66 )
Reclassifications ( 72 ) 218 717 72 ( 167 ) - 768
Adjustment - - - - - ( 407 ) ( 407 )
Reversal ( 17 ) - - - ( 5) - ( 22 )
Foreign exchange revaluation - - - 1 - 5 6
Depreciation and
amortization charges
for the year - ( 1,815 ) ( 986 ) ( 581 ) - ( 2,408 ) ( 5,790 )

Balance at December 31,

2021, net of accumulated
depreciation, amortization
and impairment P 7,472 P 7,966 P 13,654 P 1,224 P 1,314 P 9,956 P 41,586

Balance at January 1, 2020

net of accumulated
depreciation,
amortization and
impairment P 7,325 P 8,036 P 13,794 P 1,808 P 1,137 P 10,394 P 42,494
Additions 17 1,414 259 171 709 1,628 4,198
Disposals - ( 7) ( 7) ( 7) - - ( 21 )
Reclassifications 198 195 946 33 ( 876 ) - 496
Adjustment - - - ( 1) - - ( 1)
Depreciation and
amortization charges
for the year - ( 1,790 ) ( 1,653 ) ( 684 ) - ( 2,207 ) ( 6,334 )

Balance at December 31,

2020, net of accumulated
depreciation, amortization
and impairment P 7,540 P 7,848 P 13,339 P 1,320 P 970 P 9,815 P 40,832

Under BSP rules, investments in premises, furniture, fixtures and equipment should not
exceed 50.00 21 and 2020, the
BDO Unibank Group and the Parent Bank have complied with this requirement.
 -134 -

Certain fully depreciated premises, furniture, fixtures and equipment as of December 31, 2021
and 2020 are still being used in operations with acquisition costs amounting to P8,298 and
P7,983, respectively, in the BDO Un P7,532 and
P7,305

13. LEASES

The BDO Unibank Group and the Parent Bank have leases for certain land and building.
With the exception of short-term leases and leases of low-value underlying assets, each lease
is reflected as a Right-of-use asset under Premises, Furniture, Fixtures and Equipment
(see Note 12) and a Lease liability under Other Liabilities (see Note 21) on the statements
of financial position.

Each lease generally imposes a restriction that, unless there is a contractual right for the
BDO Unibank Group and the Parent Bank to sublet the asset to another party, the right-of-use
asset can only be used by the BDO Unibank Group. Leases are either non-cancellable or may
only be cancelled by incurring a substantive termination fee. The BDO Unibank Group and the
Parent Bank are prohibited from selling or pledging the underlying leased assets as security. For
leases over land and office spaces, the BDO Unibank Group and the Parent Bank must keep
those properties in a good state of repair and return the properties in their original condition at
the end of the lease. Further, the BDO Unibank Group and the Parent Bank must insure the
leased assets and incur maintenance fees on such items in accordance with the lease contracts.

The tables below describe the nature of BDO Unibank Group and the leasing
activities by type of right-of-use asset recognized as part of Premises, Furniture, Fixtures and
Equipment in the statements of financial position as of December 31, 2021 and 2020.
Number of Right-of-use Range of Average Remaining
Asset Leased Remaining Term Lease Term
2021 2020 2021 2020 2021 2020

BDO Unibank Group

Land 58 51 4 mos. 28 yrs. 3 mos. 26 yrs. 12 yrs. 12 yrs.
Building 1,568 1,478 1 mo. 16 yrs. 1 mo. 28 yrs. 2.2 yrs. 3.1 yrs.

Parent Bank
Land 58 51 4 mos. 28 yrs. 3 mos. 26 yrs. 12 yrs. 12 yrs.
Building 1,281 1,263 1 mo. 16 yrs. 1 mo. 27.5 yrs. 4 yrs. 4.2 yrs.
 -135 -

13.1 Right-of-Use Assets

The carrying amounts of BDO Unibank Group and the right-of-use assets as at
December 31, 2021 and 2020 and the movements during the period are shown below
(see Note 12).
BDO Unibank Group

Land Buildings Total

Balance at January 1, 2021 P 416 P 9,544 P 9,960

Additions 44 3,172 3,216
Reclassification 38 ( 38 ) -
Adjustment ( 6) ( 400 ) ( 406 )
Foreign exchange revaluation - 4 4
Depreciation and amortization ( 58 ) ( 2,458 ) ( 2,516 )

Balance at December 31, 2021 P 434 P 9,824 P 10,258

Balance at January 1, 2020 P 449 P 10,031 P 10,480

Additions 14 1,761 1,775
Depreciation and amortization ( 47 ) ( 2,248 ) ( 2,295 )

Balance at December 31, 2020 P 416 P 9,544 P 9,960

Parent Bank

Land Buildings Total

Balance at January 1, 2021 P 444 P 9,371 P 9,815

Additions 44 2,907 2,951
Reclassification 38 ( 38 ) -
Adjustment ( 7) ( 400 ) ( 407 )
Foreign exchange revaluation - 5 5
Depreciation and amortization ( 60 ) ( 2,348 ) ( 2,408 )

Balance at December 31, 2021 P 459 P 9,497 P 9,956

Balance at January 1, 2020 P 478 P 9,916 P 10,394

Additions 14 1,614 1,628
Depreciation and amortization ( 48 ) ( 2,159 ) ( 2,207 )

Balance at December 31, 2020 P 444 P 9,371 P 9,815

13.2 Lease Liabilities

Lease liabilities amounting to P12,087 and P11,701 as at December 31, 2021 and
December 31, 2020, respectively, for the BDO Unibank Group and P11,800 and P11,551,
as at December 31, 2021 and December 31, 2020, respectively, for the Parent Bank are
presented in the statements of financial position as part of Other Liabilities (see Note 21).
The use of extension and termination options gives the BDO Unibank Group and the Parent
Bank added flexibility in the event that it has identified more suitable premises in terms of cost
and/or location or determined that it is advantageous to remain in a location beyond the original
lease term. An option is only exercised when consistent with the BDO Unibank Group and the

exceeds the expected overall cost. As at December 31, 2021, the terms of the lease
contracts of the BDO Unibank Group and the Parent Bank are renewable upon mutual
agreement of the parties.
 -136 -

As of December 31, 2021, the BDO Unibank Group and the Parent Bank had not committed
to any lease which had not yet commenced.

The lease liabilities are secured by the related underlying assets. The undiscounted
maturity analysis of lease liabilities at December 31, 2021 and 2020 for the BDO
Unibank Group and the Parent Bank are as follows :
December 31, 2021
BDO Unibank Group

Within 1 to 2 2 to 3 3 to 4 4 to 5 5 to 10 10 or More
1 Year Years Years Years Years Years Years Total

Lease payments P 3,495 P 2,826 P 2,306 P 1,803 P 1,370 P 2,256 P 517 P 14,573
Finance charges ( 675 ) ( 517 ) ( 391 ) ( 275 ) ( 184 ) ( 317 ) ( 127 ) ( 2,486 )

Net present value P 2,820 P 2,309 P 1,915 P 1,528 P 1,186 P 1,939 P 390 P 12,087

Parent Bank

Within 1 to 2 2 to 3 3 to 4 4 to 5 5 to 10 10 or More
1 Year Years Years Years Years Years Years Total

Lease payments P 3,386 P 2,727 P 2,227 P 1,779 P 1,355 P 2,263 P 561 P 14,298
Finance charges ( 667 ) ( 513 ) ( 385 ) ( 276 ) ( 186 ) ( 327 ) ( 144 ) ( 2,498 )

Net present value P 2,719 P 2,214 P 1,842 P 1,503 P 1,169 P 1,936 P 417 P 11,800
December 31, 2020
BDO Unibank Group

Within 1 to 2 2 to 3 3 to 4 4 to 5 5 to 10 10 or More
1 Year Years Years Years Years Years Years Total

Lease payments P 3,181 P 2,696 P 2,186 P 1,652 P 1,231 P 2,739 P 557 P 14,242
Finance charges ( 647 ) ( 502 ) ( 378 ) ( 281 ) ( 207 ) ( 368 ) ( 158 ) ( 2,541 )

Net present value P 2,534 P 2,194 P 1,808 P 1,371 P 1,024 P 2,371 P 399 P 11,701

Parent Bank

Within 1 to 2 2 to 3 3 to 4 4 to 5 5 to 10 10 or More
1 Year Years Years Years Years Years Years Total

Lease payments P 3,101 P 2,648 P 2,143 P 1,639 P 1,236 P 2,754 P 606 P 14,127
Finance charges ( 644 ) ( 502 ) ( 379 ) ( 284 ) ( 210 ) ( 379 ) ( 178 ) ( 2,576 )

Net present value P 2,457 P 2,146 P 1,764 P 1,355 P 1,026 P 2,375 P 428 P 11,551

The BDO Unibank Group and the Parent Bank sublease its leased properties. The total
income earned from the subleasing activities amounted to nil in 2021, 2020 and 2019 for the
BDO Unibank Group and P2, P2 and P1 in 2021, 2020 and 2019, respectively, for the
Parent Bank.
 -137 -

The total cash outflow in respect to leases amounted to P3,238, P2,940 and P3,122 in 2021,
2020 and 2019, respectively, for the BDO Unibank Group and P3,100, P2,828 and P3,076 in
2021, 2020 and 2019, respectively, for the Parent Bank. Interest expense in relation to lease
liabilities amounted to P817, P690 and P827 in 2021, 2020 and 2019, respectively, for the
BDO Unibank Group and P807, P675 and P822 in 2021, 2020 and 2019, respectively, for
the Parent Bank which are, presented as part of Interest expense on lease liabilities under
Interest Expense account in the statements of income (see Notes 21 and 24).
13.3 Lease Payments Not Recognized as Liabilities
The BDO Unibank Group and the Parent Bank have elected not to recognize a lease liability
for short-term leases or for leases of low value assets. In addition, certain variable lease
payments are not permitted to be recognized as lease liabilities. Payments made under such
leases are expensed as incurred.

The expenses relating to short-term leases and low-value assets amounted to P8 and P336 in
2021, P4 and P269 in 2020 and P1 and P404 in 2019 for the BDO Unibank Group,
respectively, and nil and P328 in 2021, nil and P262 in 2020 and nil and P399 in 2019 for the
Parent Bank, respectively. Moreover, expenses relating to variable lease payments amounted
to P114, P171 and P267 for the BDO Unibank Group and P114, P171 and P260 for the
Parent Bank in 2021, 2020 and 2019, respectively. These are presented as part of
Occupancy under Other Operating Expenses account in the statements of income
(see Note 25). As of December 31, 2021, 2020 and 2019, the Parent Bank do not have lease
commitments in relation to short term leases.

14. INVESTMENT PROPERTIES

Investment properties include land and buildings held for capital appreciation and for rental.
Income earned from investment properties under rental arrangements amounted to P431 and
P86 in 2021, P366 and P83 in 2020, and P435 and P88 in 2019 in the BDO Unibank Group
and the
under Other Operating Income account (see Note 25). Direct expenses incurred from these
properties such as taxes and licenses amounted to P34 and P3 in 2021, P23 and P2 in 2020,
and P32 and P3 in 2019 in the BDO Unibank Group and the
statements, respectively, and are presented as part of Taxes and licenses under Other
Operating Expenses account in the BDO ancial
statements, respectively (see Note 25).

The gross carrying amounts and accumulated depreciation and impairment at the beginning
and end of 2021 and 2020 are shown below and in the succeeding page.
Land Buildings Total

BDO Unibank Group

December 31, 2021

Cost P 9,288 P 16,648 P 25,936
Accumulated depreciation - ( 5,412) ( 5,412 )
Allowance for impairment
(see Note 16) ( 1,658) ( 71) ( 1,729 )

Net carrying amount P 7,630 P 11,165 P 18,795

 -138 -

BDO Unibank Group

Land Buildings Total

December 31, 2020

Cost P 9,176 P 13,310 P 22,486
Accumulated depreciation - ( 4,773 ) ( 4,773 )
Allowance for impairment
(see Note 16) ( 1,773) ( 89 ) ( 1,862 )

Net carrying amount P 7,403 P 8,448 P 15,851

January 1, 2020
Cost
Accumulated depreciation P 9,616 P 13,359 P 22,975
Allowance for impairment - ( 4,189 ) ( 4,189 )
(see Note 16) ( 1,776) ( 99 ) ( 1,875 )

Net carrying amount P 7,840 P 9,071 P 16,911

Parent Bank

December 31, 2021

Cost P 7,029 P 10,473 P 17,502
Accumulated depreciation - ( 4,829) ( 4,829 )
Allowance for impairment
(see Note 16) ( 1,378) ( 32) ( 1,410 )

Net carrying amount P 5,651 P 5,612 P 11,263

December 31, 2020

Cost P 6,916 P 10,775 P 17,691
Accumulated depreciation - ( 4,320 ) ( 4,320 )
Allowance for impairment
(see Note 16) ( 1,493) ( 43 ) ( 1,536 )

Net carrying amount P 5,423 P 6,412 P 11,835

January 1, 2020
Cost P 7,218 P 10,712 P 17,930
Accumulated depreciation - ( 3,810 ) ( 3,810 )
Allowance for impairment
(see Note 16) ( 1,474) ( 51 ) ( 1,525 )

Net carrying amount P 5,744 P 6,851 P 12,595

 -139 -

A reconciliation of the carrying amounts, at the beginning and end of 2021 and 2020, of
investment properties is shown below and in the succeeding page.

Land Buildings Total

BDO Unibank Group

Balance at January 1, 2021,

net of accumulated
depreciation and impairment P 7,403 P 8,448 P 15,851
Additions 606 4,415 5,021
Reclassifications 126 ( 466 ) ( 340 )
Disposals ( 511 ) ( 309 ) ( 820 )
Foreign exchange revaluation 6 84 90
Depreciation for the year - ( 1,007 ) ( 1,007 )

Balance at December 31, 2021,

net of accumulated
depreciation and impairment P 7,630 P 11,165 P 18,795

Balance at January 1, 2020,

net of accumulated
depreciation and impairment P 7,840 P 9,071 P 16,911
Additions 467 827 1,294
Reclassifications ( 239 ) ( 62 ) ( 301 )
Disposals ( 658 ) ( 395 ) ( 1,053 )
Foreign exchange revaluation ( 7) ( 40 ) ( 47 )
Depreciation for the year - ( 953 ) ( 953 )

Balance at December 31, 2020,

net of accumulated
depreciation and impairment P 7,403 P 8,448 P 15,851
 -140 -

Land Buildings Total

Parent Bank

Balance at January 1, 2021,

net of accumulated
depreciation and impairment P 5,423 P 6,412 P 11,835
Additions 606 865 1,471
Disposals ( 510 ) ( 309 ) ( 819 )
Reclassifications 126 ( 472 ) ( 346 )
Foreign exchange revaluation 6 - 6
Depreciation for the year - ( 884 ) ( 884 )

Balance at December 31, 2021,

net of accumulated
depreciation and impairment P 5,651 P 5,612 P 11,263

Balance at January 1, 2020,

net of accumulated
depreciation and impairment P 5,744 P 6,851 P 12,595
Additions 460 784 1,244
Disposals ( 535 ) ( 310 ) ( 845 )
Reclassifications ( 239 ) ( 62 ) ( 301 )
Foreign exchange revaluation ( 7) - ( 7)
Depreciation for the year - ( 851 ) ( 851 )

Balance at December 31, 2020,

net of accumulated
depreciation and impairment P 5,423 P 6,412 P 11,835

The fair value of investment properties as of December 31, 2021 and 2020, determined using
observable recent prices of the reference properties adjusted for difference and replacement
cost approach, amounted to P40,135 and P33,156, respectively, for the BDO Unibank
financial statements and P32,736 and P30,947
statements. Other information about the fair value measurement and disclosures related to the
investment properties are presented in Note 7.5.
The recoverable amount of impaired investment properties as of December 31, 2021 and 2020
was based on value in use computed through discounted cash flows method at an effective rate
of 0.69% and 0.83% in 2021 and 2020, respectively.

BDO Unibank Group has no contractual obligations to purchase, construct or develop

investment properties, or to repair, neither maintain or enhance the same nor are there any
restrictions on the future use or realizability of the investment properties.

Real and other properties acquired (ROPA) in settlement of loans through foreclosure or
dacion in payment are significantly accounted for as either: investment properties, financial
assets at FVOCI, other resources or non-current assets held for sale.
 -141 -

As of December 31, 2021 and 2020, ROPA, gross of allowance, comprise of the following:

BDO Unibank Group Parent Bank

2021 2020 2021 2020

Investment properties P 11,070 P 11,223 P 11,028 P 11,210

Financial assets at FVOCI 499 1,468 499 1,467
Non-current assets held for sale 1,954 1,066 1,952 1,066

P 13,523 P 13,757 P 13,479 P 13,743

15. OTHER RESOURCES

The components of this account are shown below.

BDO Unibank Group Parent Bank
Notes 2021 2020 2021 2020

Deferred charges 15.1 P 7,852 P 9,316 P 7,852 P 9,316

Deferred tax assets - net 31.1 6,768 7,911 6,262 7,383
Foreign currency notes
and coins on hand 5,597 8,578 5,597 8,577
Equity investments 15.2 5,347 5,015 43,839 37,720
Goodwill 15.3 4,535 4,535 1,391 1,391
Computer software - net 3,696 2,121 3,535 1,966
Branch licenses 15.4 3,020 3,020 3,020 3,020
Non-current assets
held for sale 15.5 1,954 1,066 1,952 1,066
Credit card acquiring 1,226 3,888 1,226 3,888
Margin deposits 581 214 187 178
Customer lists - net 15.7 487 487 487 487
Prepaid documentary
stamps 454 475 414 444
Real properties for
development and sale 260 350 - -
Returned checks and
other cash items 58 211 24 208
Dividend receivable - 111 - 78
Trademark - net 15.6 - 25 - 25
Retirement assets 26.2 - 1,300 - 1,217
Others 15.7, 20 9,966 9,355 8,578 8,471
51,801 57,978 84,364 85,435
Allowance for impairment 16 ( 2,921) ( 2,826) ( 2,602) ( 2,522)

P 48,880 P 55,152 P 81,762 P 82,913

 -142 -

15.1 Deferred Charges

Deferred charges represent the unamortized portion of loan origination fees, which consist of
commission and other fees related to auto loans, presented as part of Receivables from
customers - Loans and discounts account under Loans and Other Receivables in the statements
of financial position (see Note 11). This amount is initially deducted from the loan proceeds
issued to the borrowers and then subsequently amortized over the term of the loan. In addition,
this account also includes origination costs related to Long-term Negotiable Certificate of
Deposits (LTNCD) presented as part of Time deposit liabilities under Deposit Liabilities
account in the statements of financial position (see Note 17). This also includes originating
costs related to Fixed Rate Bonds, Bills Payable and Senior Notes (see Note 18).

15.2 Equity Investments

Equity investments consist of the following:

BDO Unibank Group Parent Bank
Held 2021 2020 2021 2020

Philippine subsidiaries
BDO Network 84.87% P - P - P 8,166 P 8,166
BDOSHI 100% - - 5,684 5,684
BDO Life 97% - - 3,403 3,403
BDO Private 100% - - 2,579 2,579
BDO Leasing 87.43% - - 1,878 1,878
BDO Capital 99.88% - - 1,878 1,878
BDOI 100% - - 11 11
Equimark 60% - - 4 4
- - 23,603 23,603

Foreign subsidiaries
BDORO 100% - - 169 169
BDO Remit (Japan) Ltd. 100% - - 92 92
BDO Remit (Canada) Ltd. 100% - - 50 50
BDO Remit (USA), Inc. 100% - - 26 26
- - 337 337
Associates
SM Keppel Land, Inc. (SM Keppel) 50% 1,658 1,658 1,658 1,658
NLEX Corporation 11.70% 1,405 1,405 1,405 1,405
NorthPine Land, Inc. 20% 232 232 232 232
Taal Land, Inc. 33.33% 170 170 170 170
BDO Securities 2.65% - - 35 35
3,465 3,465 3,500 3,500

Accumulated equity in total comprehensive income:

Balance at beginning of year 1,550 1,578 10,280 12,711
Equity in net profit 814 470 6,350 3,839
Equity in other comprehensive income (loss) ( 6) ( 10 ) 2,587 ( 4,610)
Dividends ( 476 ) ( 488 ) ( 2,818) ( 1,913)
Disposal - - - 208
Change in percentage ownership in subsidiaries - - - 11
Liquidation - - - 34
Balance at end of year 1,882 1,550 16,399 10,280

Net investments in associates/subsidiaries 5,347 5,015 43,839 37,720

Allowance for impairment ( 153) ( 153 ) ( 153) ( 153 )

P 5,194 P 4,862 P 43,686 P 37,567

as that of the Parent Bank in both 2021 and 2020, except for BDO Life, BDO Leasing and
BDO Securities which is at 100%, 88.54% and 99.88% for BDO Unibank Group, respectively
(see Note 2.3) and 97.00%, 87.43% and 2.65% in the Parent Bank, respectively, as shown in
the previous page, in both years.
 -143 -

In 2020, the trading of the shares of BDO Leasing were suspended indefinitely. Using the last
traded price on January 24, 2020, the fair value amounts to P6,050. For the remaining equity
investments, the fair value cannot be reliably determined either by reference to similar financial
instruments or through valuation technique using the net present value of future cash flows.
2021 are all incorporated in the
Philippines, except for the following:
Foreign Subsidiaries Country of Incorporation

BDO Remit (USA), Inc. United States of America

BDORO United Kingdom
BDO Remit International Holdings B.V** Netherlands
BDO Remit UK, Ltd. ** United Kingdom
BDO Remit (Spain), S.A** Spain
CBN Greece S.A. ** Greece
BDO Remit (Japan) Ltd. Japan
BDO Remit (Canada) Ltd. Canada
BDO Remit Limited* Hongkong
BDO Remit (Macau) Ltd.* Macau

*Wholly-owned subsidiaries of BDOSHI

**Subsidiaries of BDO Capital

On May 30, 2012, BDORO was registered with the Registrar of Companies for England and
Wales (UK) as a private limited company with registered office at the 8th floor, 20 Farringdon
Street, London.
investment in BDORO amounted to P169.
BDO Remit (Canada) Ltd., a wholly-owned remittance subsidiary in Vancouver, Canada
operates as a remittance business and function as a marketing office of the Parent Bank.
As
(Canada) Ltd. amounted to P50.

In May 2013, BDO Capital obtained control over BDO Remit International Holdings, B.V.
(formerly CBN Grupo International Holdings B.V.) through its 60% ownership. Goodwill
amounted to P91 and non-controlling share in equity totaled P39 at the date the BDO Unibank
established. In October 2016, BDO Capital acquired additional shares
which increased its ownership interest to 96.32%. Additional goodwill acquired amounted to
P32 (see Note 30.1).

On December 5, 2020, the BOD of the Parent Bank approved the write-off of the investment
in PCI Realty Corporation.

On June 30, 2021, the BOD of BDONB approved the conversion of the bank from a rural
bank to a savings bank. This was ratified by the BDONB shareholders on August 13, 2021
and approved by the BSP on January 20, 2022.

BDO Unibank Group includes two subsidiaries, BDO Leasing and BDO Network, with
significant NCI:
Proportion of
Ownership Interest
and Voting Rights
Held by NCI Profit Allocated to NCI Accumulated NCI
Name 2021 2020 2021 2020 2021 2020
BDO Leasing 11.46% 11.46% P 5 P 29 P 689 P 684
BDO Network 15.13% 15.13% 58 18 941 930
 -144 -

The registered office and principal place of business of BDO Leasing is located at 39th Floor,
BDO Corporate Center Ortigas, 12 ADB Avenue, Ortigas Center, Mandaluyong City.
The registered office and principal place of business of BDO Network is located at BDONB
Center, Km. 9, Sasa, Davao City.
No dividends were paid to NCI in 2021 and 2020, respectively (see Note 22.3).

The summarized consolidated financial information of BDO Leasing and BDO Network,
before intragroup eliminations, follows:
BDO Leasing
2021 2020
Statements of financial position:
Total current resources P 6,020 P 5,996
Total current liabilities 8 28
Equity attributable to owners of the parent 5,323 5,284
Non-controlling interest 689 684
Statements of comprehensive income:
Total interest income - 1,116
Total other operating income 57 1,250
Profit attributable to
owners of the parent 39 223
Profit attributable to NCI 5 29
Profit 44 252
Total comprehensive income
attributable to owners of the parent 39 187
Total comprehensive income
attributable to NCI 5 24
Total comprehensive income P 44 P 211
Statements of cash flows:
Net cash from (used in) operating activities (P 31 ) P 20,735
Net cash used in investing activities ( 70) ( 636)
Net cash used in financing activities - ( 20,113)

Net cash outflow (P 101) (P 14)

BDO Network
2021 2020

Statements of financial position:

Total current resources P 10,091 P 7,136
Total non-current resources 44,648 33,623
Total current liabilities 47,743 10,384
Total non-current liabilities 776 24,226
Equity attributable to owners of the parent 5,278 5,219
Non-controlling interest 941 930
 -145 -

BDO Network
2021 2020
Statements of comprehensive income:
Total interest income 4,343 3,234
Total other operating income 2,090 1,428
Profit attributable to
owners of the parent 325 103
Profit attributable to NCI 58 18
Profit 383 121

Total comprehensive income

attributable to owners of the parent 59 92
Total comprehensive income
attributable to NCI 11 16

Total comprehensive income P 70 P 108

Statements of cash flows:

Net cash from (used in) operating activities P 7,924 P 1,151
Net cash used in investing activities ( 5,685) ( 1,498 )
Net cash used in financing activities ( 125 ) ( 81)

Net cash inflow (outflow) P 2,114 (P 428 )

The
associates as of and for the years ended December 31, 2021, 2020 and 2019:
NLEX SM
Corporation Keppel Others Total

December 31, 2021

(Unaudited)

Assets P 69,743 P 15,796 P 3,922 P 89,461

Current 7,383 2,232 2,986 12,601
Non-current 62,360 13,564 936 76,860

Liabilities 46,724 11,231 1,233 59,188

Current 5,897 1,335 1,214 8,446
Non-current 40,827 9,896 19 50,742

Equity 23,019 4,565 2,689 30,273

Revenues 12,851 570 1,328 14,749
Net profit 5,108 105 259 5,472

December 31, 2020

(Audited)

Assets P 62,786 P 15,447 P 3,149 P 81,382

Current 4,020 1,862 2,944 8,826
Non-current 58,766 13,585 205 72,556

Liabilities 42,672 10,987 718 54,377

Current 13,016 2,138 699 15,853
Non-current 29,656 8,849 19 38,524

Equity 20,114 4,460 2,431 27,005

Revenues 18,107 674 843 19,624
Net profit (loss) 3,604 ( 84 ) 118 3,638
 -146 -

NLEX SM
Corporation Keppel Others Total

December 31, 2019

(Audited)

Assets P 57,903 P 15,433 P 3,178 P 76,514

Current 5,586 1,768 2,567 9,921
Non-current 52,317 13,665 611 66,593

Liabilities 38,375 10,889 855 50,119

Current 8,026 2,274 630 10,930
Non-current 30,349 8,615 225 39,189

Equity 19,528 4,544 2,323 26,395

Revenues 23,016 654 1,229 24,899
Net profit 6,634 47 217 6,898

15.3 Goodwill

Goodwill represents the excess of the cost of acquisition of the Parent Bank over the fair value
of the net assets acquired at the date of acquisition and relates mainly to business synergy for
economics of scale and scope. This is from the acquisition of BDO Card Corporation, United
Overseas Bank Philippines (UOBP), American Express Bank, Ltd., GE Money Bank, Rural
Bank of San Juan, Inc., Rural Bank of San Enrique, Inc., BDO RIH, BDO Savings, Inc.
(BDO Savings), BDO Network and Rural Bank of Pandi, Inc. (RBPI), which were acquired in
2005, 2006, 2007, 2009, 2012, 2013, 2014, 2015, 2016 and 2019, respectively (see Note 30).

The reconciliation of the carrying amount of goodwill (net of allowance for impairment) of
BDO Unibank Group is as follows:

2021 2020

Balance at beginning of year P 3,057 P 3,075

Impairment ( 36) ( 18)

Balance at end of year P 3,021 P 3,057

In 2021 and 2020 there was no movement for the goodwill account of the Parent Bank, which
was already provided with full allowance.

Significant portion of goodwill of the BDO Unibank pertains to the goodwill from acquisition
of BDO Network amounting to P2,907.

On August 22, 2019, the Monetary Board of the BSP approved the asset sale and purchase
agreement between BDO Network and RBPI. The transaction was completed on October 31,
2019. The total goodwill recognized, representing cash premium, amounted to P100.

The BDO Unibank Group recognized impairment loss on goodwill of P36, P18 and P69 in
2021, 2020 and 2019, respectively. The Parent Bank did not recognize any impairment loss in
2021, 2020 and 2019, to write-down the value of the goodwill to their recoverable amount.
 -147 -

The BDO Unibank Group and the Parent Bank provided impairment losses on some of its
goodwill as it does not expect any economic benefit on this asset in the succeeding periods
since the branch business grew as a result of the efforts and brand of the Parent Bank and is
not a result of the customers of the previous banks acquired. The recoverable amount to
determine any impairment on the goodwill was determined using discounted cash flow method
approach based on five-year cash flow projection to be realized by the acquired entity and the
estimated terminal value. The growth rate used to extrapolate the ten-year cash flow projection
ranges from 6% to 19% at a discount rate of 3%. The BDO Unibank Group also considered
key assumptions in determining the cash flow projections which includes volume and growth
target projection on salary loans and micro, small and medium enterprises (MSME) loans
offered by BDO Network.

15.4 Branch Licenses

Branch licenses represent the rights granted by the BSP to the Parent Bank to establish certain
number of branches as an incentive in acquiring The Real Bank (A Thrift Bank), Inc. and BDO
Savings in addition to the current branches of the acquired banks. The Parent Bank performs
annual impairment testing of branch licenses.
In 2021 and 2020, there were no allowance on impairment loss on branch license recognized
, since all branch licenses
were already utilized as of December 31, 2021 and 2020. The recoverable amount to determine
any impairment on the branch licenses was determined using discounted cash flow method
approach based on cash flow projection to be realized by the branch and the estimated
terminal value. The growth rate used to extrapolate the cash flow projection ranges from 6%
to 19% at a discount rate of 3%.
15.5 Non-current Assets Held for Sale
Non-current assets held for sale consist of real and other properties acquired through
repossession or foreclosure that BDO Unibank Group and the Parent Bank intend to sell within
one year from the date of classification as held for sale. No impairment loss was recognized in
2019 to 2021 in both the BDO .
15.6 Trademark
Amortization expense on trademark arising from acquisition of Diners Club International
credit card portfolio amounted to P25, P33 and P33 in 2021, 2020 and 2019, respectively.
This is recorded under Miscellaneous under Other Operating Expenses account in the
statements of income (see Note 25).
15.7 Others
Amortization expense on computer software licenses amounted to P1,342, P734 and P546 in
2021, 2020 and 2019, respectively, in the BDO Unibank Group
P1,291, P696 and P502 in 2021, 2020 and 2019,
statements. These are reported as Amortization of computer software under Other Operating
Expenses account in the statements of income (see Note 25).

Depreciation and amortization expense on certain assets amounting to P45, P21 and P21 in
2021, 2020 and 2019, respectively, in both BDO Unibank Group financial
statements are presented as part of Occupancy under Other Operating Expenses account in
the statements of income (see Note 25).
 -148 -

No impairment loss was recognized by the Parent Bank from 2019 to 2021 on the value of
customer lists.
of a trust business in 2014.
In 2020, the BDO Unibank Group and the Parent Bank set-aside an additional ESOP fund for
the purchase of secondary shares amounting to P4,814.

16. ALLOWANCE FOR IMPAIRMENT

Changes in the allowance for impairment are summarized below.
BDO Unibank Group Parent Bank
Notes 2021 2020 2021 2020
Balance at beginning of year:
Investment securities at
amortized cost 10.3 P 1,590 P 1,553 P 1,571 P 1,543
Loans and other receivables 11 58,851 32,666 56,274 29,833
Bank premises 12 647 645 496 496
Investment properties 14 1,862 1,875 1,536 1,525
Other resources 15 2,826 2,373 2,522 2,081
65,776 39,112 62,399 35,478

Impairment losses (recoveries)

Investment securities at
amortized cost 10.3 ( 192 ) P 105 ( 190 ) 96
Loans and other receivables 11 17,222 29,519 17,006 28,905
Other resources 93 511 56 491
17,123 30,135 16,872 29,492

Write-offs and other adjustments

Write-offs ( 8,970) ( 2,971) ( 8,353 ) ( 2,831)
Foreign currency revaluation 549 ( 332) 551 ( 332)
Reclassification 86 ( 164) 86 ( 164 )
Adjustments ( 52 ) 615 - 756
Reversals ( 1) ( 619) - -
( 8,388) ( 3,471) ( 7,716 ) ( 2,571)

Balance at end of year:

Investment securities at
amortized cost 10.3 P 1,471 P 1,590 P 1,455 P 1,571
Loans and other receivables 11 67,743 58,851 65,592 56,274
Bank premises 12 647 647 496 496
Investment properties 14 1,729 1,862 1,410 1,536
Other resources 15 2,921 2,826 2,602 2,522

P 74,511 P 65,776 P 71,555 P 62,399

The BDO Unibank Group and the Parent Bank provided impairment loss (reversal) on debt
securities measured as FVOCI amounting to (P88) and (P71), respectively, in 2021, P37 and
P36, respectively, in 2020 and P13 and P5, respectively, in 2019. The impairment losses on
debt securities classified as FVOCI are recognized as part of items that are or will be
reclassified subsequently to profit or loss in the statements of comprehensive income
(see Note 10.2).

The BDO Unibank Group and the Parent Bank also provided impairment loss (recovery) on
loan commitments and other contingent accounts amounting to P28, P68 and (P67) in 2021,
2020 and 2019, respectively, which is recognized as Provision Others under Other Liabilities
in the statements of financial position (see Note 21). In addition, the BDO Unibank Group
and the Parent Bank also provided impairment loss related to provision for damage suits
amounting to P12 in 2019 (nil in 2021 and 2020), which were recognized as part of Others
under Other Liabilities in the statements of financial position (see Note 21).
 -149 -

Total impairment losses on certain financial assets amounted to P17,030, P29,624 and P6,008
in 2021, 2020
P16,816, P29,001 and P5,749 in 2021, 2020 and 2019, respectively, in the
statements of income.

Total impairment losses on non-financial assets amounted to P93, P511 and P200 in

P56, P491, and nil in 2021, 2020 and 2019,

income.

17. DEPOSIT LIABILITIES

The breakdown of this account follows:

BDO Unibank Group Parent Bank

2021 2020 2021 2020

Demand P 404,568 P 314,256 P 381,824 P 292,040

Savings 2,000,245 1,810,164 1,972,851 1,786,996
Time 416,083 485,731 397,040 469,255

P 2,820,896 P 2,610,151 P 2,751,715 P 2,548,291

This account is composed of the following (by counterparties):

BDO Unibank Group Parent Bank
2021 2020 2021 2020
Due to other banks:
Demand P 2,639 P 2,672 P 2,630 P 2,661
Savings 4,672 4,680 4,672 4,680
Time 5,710 9,703 5,530 9,557
13,021 17,055 12,832 16,898
Due to customers:
Demand 401,929 311,584 379,194 289,379
Savings 1,995,573 1,805,484 1,968,179 1,782,316
Time 410,373 476,028 391,510 459,698
2,807,875 2,593,096 2,738,883 2,531,393

P 2,820,896 P 2,610,151 P 2,751,715 P 2,548,291

The breakdown of deposit liabilities as to currency is as follows:

BDO Unibank Group Parent Bank

2021 2020 2021 2020

Philippine pesos P 2,357,528 P 2,191,889 P 2,301,231 P 2,147,261

Foreign currencies 463,368 418,262 450,484 401,030
P 2,820,896 P 2,610,151 P 2,751,715 P 2,548,291
 -150 -

The maturity profile of this account is presented below.

BDO Unibank Group Parent Bank

2021 2020 2021 2020

Less than one year P 2,732,734 P 2,514,315 P 2,664,655 P 2,453,190

One to five years 25,667 33,163 25,374 32,428
Beyond five years 62,495 62,673 61,686 62,673
P 2,820,896 P 2,610,151 P 2,751,715 P 2,548,291

The BDO Unibank Group and the

savings and time deposit accounts bearing annual interest rates ranging from 0.00% to 5.38%
in 2021, 2020 and 2019. Demand and savings deposits usually have both fixed and variable
interest rates while time deposits have fixed interest rates (see Note 24).

December 31, 2021 and 2020 as follows:

Outstanding Balance
BSP Approval Effective Rate 2021 2020 Issue Date Maturity Date

August 15, 2019 4.000% P 6,500 P 6,500 September 27, 2019 March 27, 2025
May 11, 2018 5.375% 7,320 7,320 April 12, 2019 October 12, 2024
June 23, 2017 4.375% 8,200 8,200 May 7, 2018 November 7, 2023
June 23, 2017 3.625% 11,800 11,800 August 18, 2017 February 18, 2023
P 33,820 P 33,820

The net
maturity profile of funding source and to support its business expansion plans.

In compliance with the BSP Circular No. 1082 issued on March 31, 2020, the Philippine Peso
deposit liabilities of the BDO Unibank Group, under the said circular, are subject to reserve
requirement of 12% effective April 3, 2020. Moreover, the Philippine LTNCD under
BSP Circular No. 824 and LTNCD under BSP Circular No. 304 of the BDO Unibank Group
are likewise subject to a reserve requirement of 4% and 3%, respectively, effective May 31,
2019.

18. BILLS PAYABLE

This account is composed of the following borrowings from:

BDO Unibank Group Parent Bank

Note 2021 2020 2021 2020

Fixed rate bonds 18.2 P 76,436 P 76,156 P 76,436 P 76,156

Senior notes 18.1 73,053 83,138 73,053 83,138
Foreign banks 46,881 43,652 45,792 43,573
Local banks 2,640 6,798 - -
Deposit substitutes 893 - 893 -
Others 4,528 - - -

P 204,431 P 209,744 P 196,174 P 202,867

 -151 -

The breakdown of this account as to currency follows:

BDO Unibank Group Parent Bank

2021 2020 2021 2020

Foreign currencies P 120,920 P 126,894 P 119,738 P 126,711

Philippine pesos 83,511 82,850 76,436 76,156

P 204,431 P 209,744 P 196,174 P 202,867

The maturity profile of this account is presented below.

BDO Unibank Group Parent Bank

2021 2020 2021 2020

One to three months P 24,640 P 47,961 P 18,906 P 41,098

More than three months to
one year 88,333 15,701 87,110 15,701
More than one to three years 53,551 110,469 52,251 110,456
More than three years 37,907 35,613 37,907 35,612

P 204,431 P 209,744 P 196,174 P 202,867

Bills payable bear annual interest rates of 0.30% to 4.50% in 2021, 0.52% to 6.25% in 2020 and
0.33% to 6.42% in 2019 (see Note 24).

The following comprise the interest expense included as part of Interest Expense on bills
payable and other liabilities in the statements of income (see Note 24):

2021 2020 2019

BDO Unibank Group

Fixed rate peso bonds P 2,893 P 3,540 P 1,997
Foreign banks 356 791 1,873
Senior notes 2,257 2,012 1,772
Local banks 189 470 901
Deposit substitutes 1 - -
Others 43 34 472

P 5,739 P 6,847 P 7,015

Parent Bank
Fixed rate peso bonds P 2,893 P 3,540 P 1,997
Foreign banks 349 790 1,859
Senior notes 2,257 2,012 1,772
Others 1 - 42

P 5,500 P 6,342 P 5,670

 -152 -

18.1 Senior Notes

The Parent Bank issued senior notes as follows:

Coupon Principal Outstanding Balance
Issue Date Maturity Date Interest Amount 2021 2020

July 13, 2020 January 13, 2026 2.13% 600 P 30,591 P 28,733
February 20, 2018 February 20, 2025 4.16% 150 7,741 7,280
September 6, 2017 March 6, 2023 2.95% 676 34,721 32,649
October 24, 2016 October 24, 2021 2.63% 300 - 14,476

P 73,053 P 83,138

The issuance of senior notes 2020 (nil in 2021)

management initiatives to tap longer-term funding sources to support its dollar-denominated
projects and effectively refinance outstanding bonds.

18.2 Issuance of Fixed Rate Peso Bonds

On August 31, 2018, the BOD approved the establishment of a P100 billion Peso Bond
Program. On February 1, 2020, the BOD approved an increase of P300 billion to the Parent
B

The Parent Bank issued fixed rate peso bonds as follows:

Coupon Principal Outstanding Balance
Issue Date Maturity Date Interest Amount 2021 2020

February 3, 2020 August 3, 2022 4.41% 40,100 P 40,256 P 40,132

July 3, 2020 April 3, 2022 3.13% 36,000 36,180 36,024

P 76,436 P 76,156

18.3 Reconciliation of Liabilities Arising from Financing Activities

Presented below is the reconciliation of liabilities arising from financing activities both in 2021
and 2020, which includes both cash and non-cash changes.
BDO Unibank Group

Foreign Senior Fixed Rate Local Deposit

Banks Notes Peso Bonds Banks Substitute BSP Others Total

Balance as of January 1, 2021 P 43,652 P 83,138 P 76,156 P 6,798 P - P - P - P 209,744

Cash flows from financing activities

Additional borrowings 63,472 - - 51,916 941 910 10,620 127,859
Repayment of borrowings ( 61,475 ) ( 15,300 ) - ( 56,063 ) ( 48 ) ( 910 ) ( 6,109 ) ( 139,905 )
Non-cash financing activities
Interest amortization ( 3) 61 280 ( 17 ) - - 17 338
Revaluation 1,235 5,154 - 6 - - - 6,395

Balance as of December 31, 2021 P 46,881 P 73,053 P 76,436 P 2,640 P 893 P - P 4,528 P 204,431

Balance as of January 1, 2020 P 54,916 P 57,298 P 35,141 P 13,427 P - P - P 6,742 P 167,524

Cash flows from financing activities
Additional borrowings 78,583 29,898 75,516 188,431 - 210 2,569 375,207
Repayment of borrowings ( 87,643 ) - ( 35,141 ) ( 194,994 ) - ( 210 ) ( 9,311 ) ( 327,299 )
Non-cash financing activities
Interest amortization ( 55 ) ( 27 ) 640 ( 32 ) - - - 526
Revaluation ( 2,149 ) ( 4,031 ) - ( 34 ) - - - ( 6,214 )

Balance as of December 31, 2020 P 43,652 P 83,138 P 76,156 P 6,798 P - P - P - P 209,744

Balance as of January 1, 2019 P 55,406 P 59,437 P - P 22,443 P - P - P 6,337 P 143,623

Cash flows from financing activities
Additional borrowings 100,891 - 34,734 301,463 - 2,000 71,063 510,151
Repayment of borrowings ( 99,269 ) - - ( 310,332 ) - ( 2,000 ) ( 70,650 ) ( 482,251 )
Non-cash financing activities
Interest amortization 91 55 407 ( 87 ) - - ( 8) 458
Revaluation ( 2,203 ) ( 2,194 ) - ( 60 ) - - - ( 4,457 )

Balance as of December 31, 2019 P 54,916 P 57,298 P 35,141 P 13,427 P - P - P 6,742 P 167,524
 -153 -

Parent Bank

Foreign Senior Fixed Rate Local Deposit

Banks Notes Peso Bonds Banks Substitute BSP Others Total

Balance as of January 1, 2021 P 43,573 P 83,138 P 76,156 P - P - P - P - P 202,867

Cash flows from financing activities
Additional borrowings 59,811 - - 941 10 - 60,762
Repayment of borrowings ( 58,664 ) ( 15,300 ) - - ( 48 ) ( 10 ) - ( 74,022 )
Non-cash financing activities -
Interest amortization ( 11 ) 61 280 - - - - 330
Revaluation 1,083 5,154 - - - - - 6,237

Balance as of December 31, 2021 P 45,792 P 73,053 P 76,436 P - P 893 P - P - P 196,174

Balance as of January 1, 2020 P 54,882 P 57,298 P 35,141 P - P - P - P - P 147,321

Cash flows from financing activities
Additional borrowings 76,114 29,898 75,516 136 - 10 - 181,674
Repayment of borrowings ( 85,267 ) - ( 35,141 ) ( 109 ) - ( 10 ) - ( 120,527 )
Non-cash financing activities
Interest amortization ( 57 ) ( 27 ) 640 - - - - 556
Revaluation ( 2,099 ) ( 4,031 ) - ( 27 ) - - - ( 6,157 )

Balance as of December 31, 2020 P 43,573 P 83,138 P 76,156 P - P - P - P - P 202,867

Balance as of January 1, 2019 P 55,312 P 59,437 P - P - P - P - P 2,944 P 117,693

Cash flows from financing activities
Additional borrowings 97,733 - 34,734 - - - - 132,467
Repayment of borrowings ( 96,108 ) - - - - - ( 2,936 ) ( 99,044 )
Non-cash financing activities
Interest amortization 90 55 407 - - - ( 8 ) 544
Revaluation ( 2,145 ) ( 2,194 ) - - - - - ( 4,339 )

Balance as of December 31, 2019 P 54,882 P 57,298 P 35,141 P - P - P - P - P 147,321

19. SUBORDINATED NOTES PAYABLE

The Subordinated Notes (the Notes) represent direct, unconditional unsecured and
subordinated peso-denominated obligations of the Parent Bank, issued in accordance with
the Terms and Conditions under the Master Note. The Notes, like other subordinated
indebtedness of the Parent Bank, are subordinated to the claims of depositors and ordinary
creditors, are not a deposit, and are not guaranteed nor insured by the Parent Bank or any
party related to the Parent Bank, such as its subsidiaries and affiliates, or the Philippine
Deposit Insurance Corporation (PDIC), or any other person. The Notes carry interest rates
based on prevailing market rates, with a step-up provision if not called on the fifth year from
issue date. The Parent Bank has the option to call the Notes on the fifth year, subject to prior
notice to Noteholders.

The issuance of Series 2014-1 Notes was approved by the BOD on March 29, 2014 and was
issued on December 10, 2014. The Notes had a principal amount of P10,000 and a maturity
date of March 10, 2025. In its letter dated December 2, 2019, the BSP approved the Parent
on March 10, 2020. On
said date, noteholders were paid the redemption price equal to the par value of the Notes plus
all accrued and unpaid interest up to but excluding March 10, 2020 after which the Notes were
considered redeemed and cancelled.
 -154 -

20. INSURANCE CONTRACT LIABILITIES

This account consists of:
2021 2020

Legal policy reserves P 60,438 P 55,439

Policy and contract claims payable 3,716 2,121
1,174 850

P 65,328 P 58,410
The aging profile of this account is presented below.

2021 2020

Within one year P 3,375 P 852

More than one year 61,953 57,558
P 65,328 P 58,410

Insurance contract liabilities may be analyzed as follows:

Insurance
Contract Liabilities Share of Liabilities Net
2021 2020 2021 2020 2021 2020

Aggregate reserves for:

Ordinary life policies P 35,217 P 36,987 P - P - P 35,217 P 36,987
Variable unit-linked
(VUL) contracts 24,627 17,884 - - 24,627 17,884
Group life insurance policies 578 557 31 60 547 497
Accident and health policies 15 11 - - 15 11
Policy and contract claims 3,716 2,121 59 32 3,657 2,089
1,175 850 - - 1,175 850

P 65,328 P 58,410 P 90 P 92 P 65,238 P 58,318

The movements in legal policy reserves are as follows:

Legal
Policy Reserves Share of Liabilities Net
2021 2020 2021 2020 2021 2020

Balance at the beginning

of the year P 55,439 P 40,232 P 60 P 54 P 55,379 P 40,178
Premiums received 18,384 15,255 92 118 18,292 15,137
Liability released for payments
of death, maturity and
surrender benefits
and claims ( 10,725 ) ( 6,698) ( 121 ) ( 112) ( 10,604) ( 6,586)
Accretion of investment
income or change in unit
prices 2,584 979 - - 2,584 979
Changes in valuation of interest
rate ( 5,686 ) 6,070 - - ( 5,686) 6,070
Foreign exchange adjustments 442 ( 399) - - 442 ( 399)

Balance at end of year P 60,438 P 55,439 P 31 P 60 P 60,407 P 55,379

The movement in Legal policy reserves for the years ended December 31, 2021 and 2020 is
recognized as part of Policy reserves, insurance benefits and claims under Other Operating
5).
 -155 -

n the BDO
l position (see Note 15).

21. OTHER LIABILITIES

Other liabilities consist of the following:

BDO Unibank Group Parent Bank

Notes 2021 2020 2021 2020

Accrued expenses P 17,089 P 18,214 P 16,124 P 17,347

Outstanding acceptances
payable 16,972 5,600 16,972 5,600
13,788 17,343 13,682 17,180
Accounts payable 13,572 20,293 10,144 17,563
Lease liabilities 13.2 12,087 11,701 11,800 11,551
Bills purchased contra 6,039 7,402 6,039 7,402
Derivatives with negative 10.1,
fair values 27(d)(i)(4) 5,742 4,129 2,462 2,001
Retirement benefit obligation 26.2 3,800 - 3,650 -
Premium on deposit fund 3,641 3,332 - -
Withholding taxes payable 2,093 1,963 1,922 1,812
Lease deposits 745 384 124 127
Due to BSP and Treasurer
of the Philippines 727 526 723 522
Capitalized interest and
other charges 193 464 151 417
Due to principal 97 363 - -
Others 16, 34.1.2 11,961 11,860 10,863 10,649

P 108,546 P 103,574 P 94,656 P 92,171

The maturity profile of this account is presented below.

BDO Unibank Group Parent Bank
2021 2020 2021 2020

Within one year P 88,339 P 84,345 P 80,340 P 77,156

More than one year 20,207 19,229 14,316 15,015
P 108,546 P 103,574 P 94,656 P 92,171

The liability for unredeemed reward points amounting to P3,677 and P4,152 as of
December 31, 2021 and 2020, respectively, presented as part of Accrued expenses above,
represents the fair value of points earned which are redeemable significantly for goods or
services provided by third parties identified by the Parent Bank as partners in the rewards
program (see Note 2.18).
Others include margin deposits, life insurance deposits, cash letters of credit and other
miscellaneous liabilities.
Interest expense in relation to lease liabilities amounted to P817, P690 and P827 for the BDO
Unibank Group and P807, P675 and P822 for the Parent Bank in 2021, 2020 and 2019,
respectively, which are presented as part of Interest expense on finance lease liabilities under
Interest expense account in the statements of income (see Note 24).
 -156 -

Interest expense on certain liabilities amounting to P78, P106 and P117 in 2021, 2020 and
2019, respectively, for the BDO Unibank Group and P10, P18 and P28 in 2021, 2020 and
2019, respectively, for the Parent Bank which are presented as part of Interest expense on bills
payable and other borrowings under Interest Expense account in the statements of income
(see Note 24).
Impairment losses (recoveries) recognized for off-books account amounted to P28, P68 and
(P67) for both the BDO Unibank Group and the Parent Bank in 2021, 2020 and 2019,
respectively. The accumulated impairment losses as of December 31, 2021, 2020 and 2019
amounting to P289, P317 and P114, respectively, for both the BDO Unibank Group and the
Parent Bank are recorded as part of Others under Other Liabilities account in the statements
of financial position (see Note 16).

22. EQUITY

22.1 Capital Stock

Capital stock consists of the following:
Number of Shares Amount
2021 2020 2021 2020

Preferred shares P10 par value

Authorized
Balance at end of year 1,000,000,000 1,000,000,000 P 10,000 P 10,000

Issued, fully paid and outstanding 515,000,000 515,000,000 P 5,150 P 5,150

`
Common shares P10 par value
Authorized
Balance at end of year 5,500,000,000 5,500,000,000 P 55,000 P 55,000

Issued, fully paid and outstanding

Balance at beginning of year 4,384,227,915 4,381,370,334 P 43,842 P 43,814
Issued during the year 1,291,100 2,857,581 13 28

Balance at end of year 4,385,519,015 4,384,227,915 P 43,855 P 43,842

22.1.1 Preferred Shares

The following are the features of the BDO Unibank Group and the
shares:
(a) Perpetual, voting, non-cumulative, convertible, non-participating, peso-denominated
Series A shares;
(b) Convertible to common shares at the option of the holder after five years from the issue
date or at the option of BDO Unibank Group at any time after issue date; and,
(c) Dividend rate is 6.50% per annum of the par value.

22.1.2 Common Shares

lication for listing of its common shares was approved by the PSE on
April 24, 2002. The application is for the initial listing of up to 952,708,650 common shares,
with par value of P10 per share, at an offer price range of P17.80 to P23.80 per share. The
 -157 -

in additional core capital through a stock rights offer. The BSP and the PSE approved the
transaction on November 23, 2016 and December 14, 2016, respectively.

On January 3, 2017, the Parent Bank fixed the final terms for the stock rights offer which
entitled eligible shareholders to subscribe to one common share for every 5.095 common
shares held as of January 5, 2017 record date at an offer price of P83.75 per rights share.
The offer period ran from January 16, 2017 to January 24, 2017.

Following the close of the offer period, the Parent Bank successfully completed its stock
rights offer and 716,402,886 common shares were issued and subsequently listed on the PSE
on January 31, 2017. The issuance resulted in recognition of Additional Paid-in Capital
amounting to P52,662, net of related transaction costs totaling to P172. The fresh capital will
-term growth objectives amid th
macroeconomic prospects and provide a comfortable buffer over higher capital requirements
with the forthcoming imposition of DSIB surcharge.

The history of shares issuances from the initial public offering (IPO) and subsequently, private
placements exempt from registration pursuant to Section 10.1 of the Securities Regulation
Code and other issuances, is as follows:
Number of
Transaction Subscriber Issue Date Shares Issued

IPO Various May 21, 2002 908,189,550

Private placement International Finance
Corporation (IFC) June 21, 2005 31,403,592
Private placement UOBP February 8, 2006 22,429,906
BDO-EPCIB Merger BDO-EPCIB Merger May 31, 2007 1,308,606,021
Private placement IFC August 23, 2007 31,403,592
Private placement GE Capital International
Holdings Corporation August 20, 2009 37,735,849
Private placement Multi Realty Development
Corporation April 23, 2010 107,320,482
Private placement IFC April 26, 2010 24,033,253
Private placement IFC Capitalization
(Equity) Fund, L.P. April 26, 2010 136,315,662
Stock dividends Various June 8, 2012 78,218,589
Stock rights Various July 4, 2012 895,218,832
Private placement Sybase Equity Investments Corp. July 20, 2015 64,499,890
Stock options Various employees June 6, 2016 to
December 31, 2016 4,592,430
Stock options Various employees January 3, 2017 to
December 27, 2017 2,604,020
Stock rights Various employees January 31, 2017 716,402,886
Stock rights Various employees January 31, 2018 5,073,510
Stock options Various employees January 7, 2019 to
December 26, 2019 7,322,270
Stock options Various employees January 6, 2020 to
December 28, 2020 2,857,581
Stock options Various employees January 15, 2021 to
December 15, 2021 1,291,100

4,385,519,015

As of December 31, 2021 and 2020, there are 12,390 and 12,442 holders, respectively, of the

shares closed at P120.70 and P106.80 per share as of December 31, 2021 and December 29,
2020, respectively, (the last trading day in 2021 and 2020).
 -158 -

22.2 BDO American Depositary Receipt Program

On April 18, 2013, the Parent Bank launched its Sponsored Level 1 American Depositary
Receipt (ADR) Program by which negotiable securities representing underlying BDO common
shares can be traded in the U.S. over-the-counter (OTC) market. This provides flexibility for
U.S. investors to trade BDO common shares in their time zone and settle their transactions
locally. It is meant to tap the pool of U.S. ADR investors, enhance visibility and global
presence and diversify an
traded in U.S. dollars, and cash dividends received on the underlying shares are paid to

1:10, with each ADR representing ten underlying BDO common shares.

The sponsored Level 1 ADR Program does not necessitate the issuance of new shares as
ADRs are traded on the U.S. OTC/secondary market using existing shares, in contrast to the
sponsored Level II ADR or sponsored Level III ADR where shares are fully listed on a
recognized U.S. exchange (e.g., NYSE, NASDAQ). As such, a Level 1 ADR is not a capital
raising transaction, to differentiate it from Level III ADR, which allows the issuer to raise
capital through a public offering of ADRs in the U.S.

The sponsored Level 1 ADR is exempt, under U.S. SEC Rule 12g3-2(b), from SEC
registration, disclosure requirements and reporting obligations, including Sarbanes-Oxley and
U.S. generally accepted accounting principles.

The Parent Bank appointed Deutsche Bank (DB) as the exclusive depositary of ADRs for
a period of five years. As depositary bank, DB is responsible for the issuance and
cancellation, as well as the registration of the ADRs; custody of the underlying BDO
common shares and maintenance of the register of holders; the distribution of dividends;
and execution of corporate actions and services to the Issuer (i.e., BDO)/Investor/Broker.
In October 2018, the Parent Bank renewed the appointment of DB as the exclusive
depositary of ADRs for another five years.

As of December 31, 2021 and 2020, 442,787 and 595,467 ADRs valued at US$11,046,429
and US$13,243,186 (absolute amount), respectively, remained outstanding (computed
using ADR closing price of US$24.95/share and US$22.24/share, respectively).

22.3 Surplus Free

Date Declared Common shares dividend Date

and Approved Per Share Total Amount Record Date Paid/Payable

February 23, 2019 P 0.30 P 1,313 March 12, 2019 March 25, 2019
May 25, 2019 0.30 1,313 June 11, 2019 June 24, 2019
August 31, 2019 0.30 1,314 September 17, 2019 September 30, 2019
December 7, 2019 0.30 1,314 December 23, 2019 December 27, 2019
February 27, 2020 0.30 1,315 March 13, 2020 March 27, 2020
May 30, 2020 0.30 1,315 June 17, 2020 June 29, 2020
August 29, 2020 0.30 1,315 September 15, 2020 September 28, 2020
December 5, 2020 0.30 1,316 December 22, 2020 December 29, 2020
February 24, 2021 0.30 1,315 March 15, 2021 March 25, 2021
May 29, 2021 0.30 1,315 June 16, 2021 June 25, 2021
August 27, 2021 0.30 1,316 September 15, 2021 September 24, 2021
December 4, 2021 0.30 1,316 December 22, 2021 December 29, 2021
 -159 -

Date Declared Preferred shares dividend Date

and Approved Per Annum Total Amount Paid/ Payable

January 26, 2019 6.50% P 339 March 8, 2019

February 1, 2020 6.50% 339 February 21, 2020
January 30, 2021 6.50% 340 February 22, 2021

On July 31, 2019, the Parent Bank entered into a deed of sale of certain parcel of land to a third
party for a total consideration of P119. The related revaluation increment on land arose from
previous business combination amounting to P76 was subsequently transferred to Surplus Free
account in the 2019 statement of changes in equity.

22.4 Surplus Reserves

The Parent Bank appropriated its Surplus Free amounting to P44 in 2021, P40 for 2020 and nil
in 2019 representing insurance fund on losses due to fire, robbery, and other cash losses. This
BDO Network appropriated its Surplus Free
amounting to P3, P2 and P5 in 2021, 2020 and 2019, respectively, representing insurance fund
on losses due to fire, robbery and other cash losses, which was approved by its Chairman.

The BDO Unibank Group and the Parent Bank appropriated its Surplus Free for impairment
of general loan loss portfolio amounting to P1,337 and P1,250 in 2021, (P830) and (P827) in
2020 and P1,543 and P1,563 in 2019, respectively. The accumulated amount of appropriation
to surplus reserves for general loan loss portfolio as of December 31, 2021, 2020 and 2019
amounted to P13,430, P12,093 and P12,923, respectively, for BDO Unibank Group and
P13,166, P11,916 and P12,743, respectively, for the Parent Bank. This appropriation was
prescribed by BSP and was recognized as part of Surplus Reserves account.

profit from trust business amounting to P263, P272 and P272 in 2021, 2020 and 2019,
respectively, and P263, P223 and P189 in 2021, 2020 and 2019, respectively, is appropriated to
surplus reserves (see Note 28).

On June 10, 2020 and July 2, 2020, the BOD of BDO Securities approved the appropriation of
P60 as additional capital requirements and the reversal of the previously approved appropriation
for cash dividends amounting to P200, respectively.

Also, included in the 2021, 2020 and 2019 surplus reserves are the appropriations made by
BDO Securities and Armstrong Securities, Inc. totaling P2, P5 and P4 respectively, as part of
the reserve fund requirement of SEC Memorandum Circular No. 16, Adoption of the Risk Based
Capital Adequacy Requirement/Ratio for Broker Dealers. On May 26, 2020, the BOD of BDO
Nomura approved the reversal of the Surplus Reserves amounting to P9 back to Surplus Free.
 -160 -

22.4.1 ESOP

For options that were exercised in 2021 and 2020, BDO Unibank Group issued new common
shares of 1,291,100 and 2,857,581, respectively, from its authorized capital stock (see Note 22).

Set out below are summaries of number of options vested under the plan:

BDO Unibank Group Parent Bank

2021 2020 2021 2020

Balance at beginning of year 6,498,024 12,539,677 4,530,459 10,405,980

Vested during the year 14,118,934 3,331,902 13,552,572 2,921,302
Forfeited during the year ( 46,800) ( 260,558 ) ( 29,250) ( 260,558)
Expired during the year ( 373,000) ( 249,700 ) ( 337,500) ( 227,700)
Exercised during the year ( 5,246,795) ( 8,863,297 ) ( 4,730,983) ( 8,308,565)

Balance at end of year 14,950,363 6,498,024 12,985,298 4,530,459

The weighted average exercise price was P109.97 and P104.08 for the years ended
December 31, 2021 and 2020, respectively.

In 2019, the Parent Bank has changed its strategy in settling the stock options exercised through
issuance of primary shares. Consequently, the previously recognized liability, which amounted
to P860, was accordingly transferred to Surplus Reserve. Share options expensed amounted to
P252, P316 and P890 in 2021, 2020 and 2019, respectively.

The fair value of the option granted was estimated using a variation of the Black-Scholes
valuation model that takes into account factors specific to the ESOP. The following principal
assumptions were used in the valuation:

Average option life 5 years

Average share price at grant date P 101.80
Average exercise price at grant date P 93.25
Average fair value of options at grant date P 34.77
Average standard deviation of share price returns 34.94%
Average dividend yield 1.20%
Average risk-free investment rate 2.75%

The underlying expected volatility was determined by reference to historical prices of the Parent
 -161 -

23. INTEREST INCOME

Interest income consists of the following:

BDO Unibank Group

Notes 2021 2020 2019

Loans and other receivables 11, 27 P 124,548 P 138,736 P 142,908

Trading and investment
securities:
At amortized cost 10.3 12,410 10,424 10,415
At FVOCI 10.2 6,215 5,546 5,607
At FVTPL 10.1 92 122 197
Due from BSP and other banks 8, 9 1,554 2,158 1,381
Others 60 45 64

P 144,879 P 157,031 P 160,572

Parent Bank
Notes 2021 2020 2019

Loans and other receivables 11, 27 P 119,566 P 134,329 P 138,521

Trading and investment
securities at:
At amortized cost 10.3 11,633 9,689 9,642
At FVOCI 10.2 3,939 3,440 3,550
At FVTPL 10.1 59 84 87
Due from BSP and other banks 8, 9 1,533 2,120 1,234
Others 42 35 47

P 136,772 P 149,697 P 153,081

24. INTEREST EXPENSE

Interest expense is composed of the following:

BDO Unibank Group

Notes 2021 2020 2019

Deposit liabilities 17, 27 P 6,952 P 15,521 P 32,047

Bills payable and other 18, 19,
borrowings 21, 26.2 5,764 7,120 7,807
Finance lease liabilities 13.2, 21 817 690 827

P 13,533 P 23,331 P 40,681

 -162 -

Parent Bank
Notes 2021 2020 2019

Deposit liabilities 17, 27 P 6,644 P 15,196 P 31,384

Bills payable and other 18, 19,
borrowings 21, 26.2 5,455 6,529 6,375
Finance lease liabilities 13.2, 21 807 675 822

P 12,906 P 22,400 P 38,581

25. OTHER OPERATING INCOME AND EXPENSES

Other operating income is composed of the following:

BDO Unibank Group
Notes 2021 2020 2019

Service charges, fees and

commissions 27 P 30,485 P 24,822 P 31,722
Insurance premiums 18,136 15,009 14,764
Trust fees 28 4,364 3,811 3,532
Foreign exchange gains 10.1 3,621 1,748 3,821
Income from assets sold or
exchanged 14 1,275 1,169 1,131
Rental 14 1,269 1,430 1,526
Trading gains - net 10.1 220 5,563 1,357
Dividends 10.1 207 551 560
Miscellaneous - net 1,777 1,107 1,698

P 61,354 P 55,210 P 60,111

Parent Bank
Notes 2021 2020 2019

Service charges, fees and

commissions 27 P 25,293 P 21,152 P 27,707
Share in net income of
subsidiaries and
associates 15.2 6,350 3,839 6,046
Trust fees 28 3,477 3,035 2,727
Foreign exchange gains 3,273 1,591 3,715
Income from assets sold or
exchanged 14 1,174 1,097 1,047
Rental 14 482 514 523
Trading gains (losses) - net 10.1 ( 349 ) 5,230 290
Dividends 19 258 180
Miscellaneous - net 916 538 910

P 40,635 P 37,254 P 43,145

 -163 -

Other operating expenses consist of the following:

BDO Unibank Group
Notes 2021 2020 2019

Compensation and benefits 26.1 P 41,744 P 37,392 P 35,385

Fees and commissions 17,140 14,994 18,826
Policy reserves, insurance benefits
and claims 20 15,633 13,136 10,775
Taxes and licenses 14 11,180 12,703 14,106
Occupancy 13, 15.7
27 9,222 9,572 9,680
Insurance 5,828 5,551 5,255
Security, clerical, messengerial
and janitorial 3,851 3,674 3,993
Advertising 2,586 2,621 4,260
Repairs and maintenance 1,982 1,600 1,437
Representation and entertainment 1,806 1,877 2,163
Amortization of computer
software 15.7 1,342 734 546
Information technology 1,136 919 869
Power, light and water 1,130 1,011 1,206
Travelling 883 1,034 1,344
Litigation on assets acquired 773 601 548
Supplies 731 767 1,001
Telecommunication 560 616 661
Freight 378 257 402
Miscellaneous 15.6 1,970 3,581 2,192

P 119,875 P 112,640 P 114,649

Parent Bank
Notes 2021 2020 2019

Compensation and benefits 26.1 P 35,786 P 32,525 P 30,777

Fees and commissions 16,600 14,575 18,305
Taxes and licenses 14 10,009 11,631 12,904
Occupancy 13, 15.7
27 7,963 8,199 8,278
Insurance 5,715 5,457 5,158
Security, clerical, messengerial
and janitorial 3,522 3,382 3,723
Advertising 2,509 2,495 4,199
Repairs and maintenance 1,855 1,487 1,296
Representation and entertainment 1,573 1,637 1,913
Amortization of computer
software 15.7 1,291 696 502
Information technology 1,113 885 836
Power, light and water 1,047 912 1,108
Litigation on assets acquired 766 592 535
Travelling 619 778 1,060
Supplies 606 676 883
Telecommunication 456 523 552
Freight 339 241 375
Miscellaneous 15.6 1,844 3,376 1,933

P 93,613 P 90,067 P 94,337

 -164 -

26. COMPENSATION AND BENEFITS

26.1 Compensation and Benefits

Expenses recognized for compensation and benefits (see Note 25) are presented below.

BDO Unibank Group

Notes 2021 2020 2019

Salaries and wages P 23,914 P 22,206 P 21,065

Bonuses 7,876 7,269 6,712
Retirement - defined benefit plan 26.2 2,421 2,097 1,819
Social security costs 1,254 1,013 884
Employee stock option plan 26.3 273 354 994
Other benefits 6,006 4,453 3,911

25 P 41,744 P 37,392 P 35,385

Parent Bank
Notes 2021 2020 2019

Salaries and wages P 20,409 P 19,147 P 18,097

Bonuses 6,942 6,424 5,988
Retirement - defined benefit plan 26.2 1,825 1,850 1,585
Social security costs 1,062 863 752
Employee stock option plan 26.3 252 316 890
Other benefits 5,296 3,925 3,465

25 P 35,786 P 32,525 P 30,777

26.2 Post-employment Benefits

(a) Characteristics of the Defined Benefit Plan

The BDO Unibank Group and the Parent Bank maintain a fully funded, multi-employer
and tax-qualified noncontributory retirement plan that is being administered by the Parent
-time employees.

The normal retirement age is 60 with a minimum of five years of credited service. The
plan also provided for an early retirement at age of 50 with a minimum of ten years of
credited service and late retirement up to age 65. Normal retirement benefit is an amount
equivalent to a percentage ranging from 50% to 200% of plan salary for every year of
credited service.

(b) Explanation of Amounts Presented in the Financial Statements

Actuarial valuations are made annually to update the retirement benefit costs and the
amount of contributions. All amounts presented in the succeeding pages are based on the
actuarial valuation report obtained from an independent actuary in 2021 and 2020.
 -165 -

The amounts of Retirement assets and benefit obligation recognized under Other Assets
accounts (see Note 15) and Other Liabilities accounts (see Note 21), respectively, in the
statements of financial position are determined as follows:

BDO Unibank Group Parent Bank

2021 2020 2021 2020

Present value of the DBO P 42,440 P 34,288 P 38,325 P 31,318

Fair value of plan assets ( 38,647 ) ( 35,650) ( 34,675 ) ( 32,582 )
Deficiency of plan assets 3,793 ( 1,362) 3,650 ( 1,264 )
Effect of asset ceiling 7 62 - 47
Retirement (assets)/
benefit obligation P 3,800 (P 1,300) P 3,650 (P 1,217 )

The movements in the present value of the DBO are as follows:

BDO Unibank Group Parent Bank
2021 2020 2021 2020

Balance at beginning of year P 34,288 P 33,937 P 31,318 P 31,189

Benefits paid by the plan ( 3,232 ) ( 1,547) ( 3,036 ) ( 1,482 )
Current service cost 2,040 2,097 1,825 1,850
Interest expense 1,323 1,777 1,215 1,631
Past service cost 381 - - -
Transfer from the plan - ( 9) ( 49 ) ( 95 )
Remeasurements:
Actuarial losses (gains)
arising from changes in:
- experience adjustments 4,136 1,041 3,534 990
- financial assumption 3,173 ( 3,008 ) 3,464 ( 2,765)
- demographic assumptions 331 - 54 -

Balance at end of year P 42,440 P 34,288 P 38,325 P 31,318

The movements in the fair value of plan assets are presented below.
BDO Unibank Group Parent Bank
2021 2020 2021 2020

Balance at beginning of year P 35,650 P 30,633 P 32,582 P 27,986

Contributions paid into the plan 4,286 5,682 3,500 5,294
Interest income 1,378 1,709 1,272 1,561
Benefits paid by the plan ( 3,231 ) ( 1,547 ) ( 3,037 ) ( 1,482 )
Transfer to/(from) the plan - 2 ( 49 ) ( 95 )
Remeasurement loss - return
on plan assets (excluding
amounts included in net
interest) 564 ( 829 ) 407 ( 682 )

Balance at end of year P 38,647 P 35,650 P 34,675 P 32,582

 -166 -

The composition of the fair value of plan assets at the end of the reporting period for each
category and risk characteristics is shown below.

BDO Unibank Group Parent Bank

2021 2020 2021 2020

Debt securities:
Government bonds P 19,400 P 18,092 P 17,407 P 16,656
Corporate bonds 7,726 10,032 6,932 9,240
UITFs 8,919 6,562 8,003 6,187
Equity securities 881 814 790 355
Loans and other receivables 499 7 447 7
Cash and cash equivalents 74 9 66 7
Other properties 1,148 134 1,030 130

P 38,647 P 35,650 P 34,675 P 32,582

Actual returns on plan assets were P1,943 and P1,679 in 2021 and P880 and P879 in 2020

[see Note 27(c)].

The fair value of the plan assets is at Level 1 in the fair value hierarchy except for
UITFs which are at Level 2, loans and other receivables and other properties, which
are at Level 3.

The components of amounts recognized in profit or loss and in other comprehensive

income of the BDO Unibank Group and the Parent Bank in respect to the defined benefit
plan is as follows:

BDO Unibank Group

2021 2020 2019

Recognized in profit or loss:

Current service costs P 2,040 P 2,097 P 1,819
Past service costs 381 - -
Interest expense (income) ( 53) 68 156

P 2,368 P 2,165 P 1,975

Recognized in other comprehensive income, net of

tax (see Note 31.1):
Actuarial losses (gains) arising from
change in:
- experience adjustments P 3,102 P 729 P 780
- demographic assumptions 248 - ( 388 )
- financial assumptions 2,379 ( 2,106 ) 1,706
Remeasurement losses (gains) arising from:
- return on plan assets (excluding
amounts included in net interest
expense) ( 423) 580 262
- changes in the effect of the asset
ceiling ( 43 ) 33 ( 5)
5,263 ( 764 ) 2,355
Effect of change in income tax rate 750 - -

P 6,013 ( P 764 ) P 2,355

 -167 -

Parent Bank
2021 2020 2019

Recognized in profit or loss:

Current service costs P 1,825 P 1,850 P 1,585
Interest expense (income) ( 55) 70 158

P 1,770 P 1,920 P 1,743

Recognized in other comprehensive income, net of

tax (see Note 31.1):
Actuarial losses (gains) arising from
change in:
- experience adjustments P 2,651 P 693 P 578
- demographic assumptions 40 - -
- financial assumptions 2,599 ( 1,935 ) 1,403
Remeasurement losses (gains) arising from:
- return on plan assets (excluding
amounts included in net interest
expense) ( 305) 477 259
- changes in the effect of the asset
ceiling ( 37) 33 -
4,948 ( 732 ) 2,240
Effect of change in income tax rate 715 - -
5,663 ( 732 ) 2,240
Share in actuarial losses (gains) of subsidiaries
and associates 341 ( 19 ) 88

P 6,004 ( P 751 ) P 2,328

Current service costs are presented as part of Compensation and benefits under Other
Operating Expenses account (see Note 25) while interest expense or income are presented
or netted against Interest Expense account (see Note 24) in the statements of income of
the BDO Unibank Group and the Parent Bank.

Amounts recognized in other comprehensive income were included within the items that
will not be reclassified subsequently to profit or loss in the statements of comprehensive
income.

In determining the amounts of post-employment benefit obligation, the following

significant actuarial assumptions were used:

BDO Unibank Group Parent Bank

2021 2020 2021 2020

Discount rates 5.03% - 5.04% 3.87% - 3.89% 5.03% 3.88%

Expected rate of salary
increases 2.0% - 11.7% 1.25% - 11.00% 4.0% - 11.7% 2.52% - 11.00%

Assumptions regarding future mortality experience are based on published statistics and
mortality tables. The average remaining working lives of an individual retiring at the
age of 60 is 23.5 years. These assumptions were developed by management with the
assistance of an independent actuary. Discount factors are determined close to the end of
each reporting period by reference to the interest rates of a zero coupon government bond
with terms of maturity approximating to the terms of the retirement obligation. Other

experience.
 -168 -

(c) Risks Associated with the Retirement Plan

The plan exposes the BDO Unibank Group and the Parent Bank to actuarial risks such as
investment risk, interest rate risk, longevity risk and salary risk.

(i) Investment and Interest Risks

The present value of the DBO is calculated using a discount rate determined by
reference to market yields of government bonds. Generally, a decrease in the interest
rate of a reference government bonds will increase the plan obligation. However, this
wil
securities and if the return on plan asset falls below this rate, it will create a deficit in the
plan. Currently, the plan is composed of investment in UITF, debt and equity
instruments, cash and cash equivalents, and loans and receivables. Due to the
long-term nature of plan obligation, a level of continuing debt securities is an
-term strategy to manage the
plans effectively.

(ii) Longevity and Salary Risks

The present value of the DBO is calculated by reference to the best estimate of the
mortality of the plan participants both during and after their employment and to their
future salaries. Consequently, increases in the life expectancy and salary of the plan
participants will result in an increase in the plan obligation.

(d) Other Information

The information on the sensitivity analysis for certain significant actuarial assumptions,
asset-liability matching strategy, and the timing and uncertainty of future cash flows related
to the retirement plan are described below and in the succeeding pages.

(i) Sensitivity Analysis

The following table below and in the succeeding page summarizes the effects of
changes in the significant actuarial assumptions used in the determination of the
retirement benefit asset as of December 31, 2021 and 2020.

Impact on Retirement Benefit Obligation

Change in Increase in Decrease in
Assumption Assumption Assumption

BDO Unibank Group

December 31, 2021

Discount rate +/-1% (P 1,850 ) P 2,051

Salary increase rate +/-1% 1,990 ( 1,835 )

December 31, 2020

Discount rate +/-1% (P 1,056 ) P 1,156

Salary increase rate +/-1% 1,134 ( 1,059 )
 -169 -

Impact on Retirement Benefit Obligation

Change in Increase in Decrease in
Assumption Assumption Assumption

Parent Bank

December 31, 2021

Discount rate +/-1% (P 1,474 ) P 1,601

Salary increase rate +/-1% 1,556 ( 1,463 )

December 31, 2020

Discount rate +/-1% (P 802 ) P 849

Salary increase rate +/-1% 841 ( 810 )

The above sensitivity analysis is based on a change in an assumption while holding all
other assumptions constant. This analysis may not be representative of the actual
change in the defined benefit obligation as it is unlikely that the change in assumptions
would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the
defined benefit obligation has been calculated using the projected unit credit method at
the end of the reporting period, which is the same as that applied in calculating the
defined benefit obligation recognized in the statements of financial position.

The methods and types of assumptions used in preparing the sensitivity analysis did not
change compared to the previous years.

(ii) Asset-liability Matching Strategies

To efficiently manage the retirement plan, BDO Unibank Group through its
Compensation Committee, ensures that the investment positions are managed in
accordance with its asset-liability matching strategy to achieve that long-term
investments are in line with the obligations under the retirement scheme. This strategy
aims to match the plan assets to the retirement obligations by investing in long-term
fixed interest securities (i.e., government or corporate bonds or UITFs) with maturities
that match the benefit payments as they fall due and in the appropriate currency.
BDO Unibank Group actively monitors how the duration and the expected yield of
the investments are matching the expected cash outflows arising from the retirement
obligations.

In view of this, investments are made in reasonably diversified portfolio, such that the
failure of any single investment would not have a material impact on the overall level of
assets.

A large portion of the plan assets as of December 31, 2021 and 2020 consists of
debt instruments and UITFs, although the BDO Unibank Group and the Parent Bank
also invest in cash and cash equivalents, equity instruments and properties. The debt
instruments include government bonds and corporate bonds.

There has been no change in the BDO Unibank Group and the Parent
to manage its risks from previous periods.
 -170 -

(iii) Funding Arrangements and Expected Contributions

As of December 31, 2021, the plan of the BDO Unibank Group and the Parent Bank is
underfunded by P3,800 and P3,650, respectively based on the latest actuarial valuation
report. While there is no minimum funding requirement in the country, the size of the
underfunding may pose a cash flow risk when a significant number of employees is
expected to retire.

The BDO Unibank Group and the Parent Bank expect to pay P7,535 and P6,544,
respectively, as contributions to retirement benefit plans in 2022.

The expected maturity of undiscounted expected benefits payments of BDO Unibank

Group and the Parent Bank from the plan for the next ten years is presented as follows:

BDO Unibank
Group Parent Bank

Between one to five years P 40,642 P 38,177

Between six to ten years 23,249 20,721

P 63,891 P 58,898

The weighted average duration of the defined benefit obligation at the end of the
reporting period is 3.0 to 14.5 years for the BDO Unibank Group and 4.9 years for the
Parent Bank.

26.3 ESOP

Bank and its subsidiaries over the vesting period. In 2021 and 2020, vested shares totaled
14,118,934 shares and 3,331,902 shares, respectively, for BDO Unibank Group, and
13,552,572 shares 2,921,302 shares, respectively, for Parent Bank.

The ESOP expense, included as part of Compensation and benefits under Other Operating
amounted to P273, P354 and
P994 in 2021, 2020 and 2019
amounted to P252, P316 and P890, respectively (see Note 26.1).
 -171 -

27. RELATED PARTY TRANSACTIONS

The Parent Bank created a Related Party Transactions Committee composed of an

independent director and a non-executive director, as of December 31, 2021. The said
committee exercises oversight role to ensure bank compliance with BSP regulations on related
party transactions.

The summary of parties as of

December 31, 2021 and 2020 and for each of the three years ended are as follows:
Amounts of Transaction Outstanding Balance
Related Party Category Note 2021 2020 2019 2021 2020

DOSRI Loans 27(a)

Stockholders P 24,854 P 3,636 P 23,713 P 34,266 P 22,892
Related Parties under
Common Ownership 12 24 75 - 419
Directors 3 3 - - 91
Officers and Employees 1,807 1,418 1,802 2,068 1,969

Deposit Liabilities 27(b)

Stockholders 468,175 390,344 576,553 19,852 20,288
Related Parties under
Common Ownership 2,670 5,099 6,568 227 338
Directors 443 451 - 54 52
Officers and Employees 222 82 433 1 1

Other Transactions with

Associates 27(d)
Loans and Advances 480 500 2,820 8,261 8,225
Interest Income 251 359 509 58 57

Related Parties Under

Common Ownership 27(d)
Right-of-use Asset 1,677 378 833 3,904 2,417
Lease Liabilities 1,474 285 200 2,816 1,710
Depreciation Expense 184 39 655 524 330
Interest Expense 77 3 142 178 68

Key Management Personnel 27(d)

Compensation 1,543 1,589 1,653 - -

Retirement Plan 27(c) 160 238 74 8,351 6,605

parties as of
December 31, 2021 and 2020 and for each of the three years ended are as follows:
Amounts of Transaction Outstanding Balance
Related Party Category Note 2021 2020 2019 2021 2020

DOSRI Loans 27(a)

Stockholders P 24,854 P 3,636 P 23,713 P 34,266 P 22,892
Related Parties under
Common Ownership 12 24 75 - 419
Directors 3 3 - - 91
Officers and Employees 1,805 1,411 1,798 2,065 1,964

Deposit Liabilities 27(b)

Stockholders 468,175 390,344 576,553 19,852 20,288
Related Parties under
Common Ownership 2,324 4,152 6,039 111 168
Directors 443 451 - 54 52
Officers and Employees 222 82 433 1 1
 -172 -

Amounts of Transaction Outstanding Balance

Related Party Category Note 2021 2020 2019 2021 2020

Other Transactions with

Subsidiaries 27(d)
Loans and Advances P 25,011 P 37,123 P 48,034 P 2,912 P 5,144
Derivative Assets 992 - - 31 -
Derivative Liabilities 612 1,471 1,033 - 27
Deposit Liabilities ( 572 ) ( 1,881) 1,257 4,769 4,197
Accounts Payable - ( 2) ( 7) 1 1
Miscellaneous Assets 117 259 ( 3) 142 259
Miscellaneous Liabilities ( 28 ) - ( 2) - 2
Interest Income 119 238 231 3 11
Rent Income 136 132 124 - -
Service Fees 874 796 792 - -
Interest Expense 5 25 83 - -
Right-of-use Asset - - - 97 104
Lease Liabilities ( 12 ) ( 11 ) ( 10) 113 118
Depreciation/Amortization 14 13 13 - -
Interest Expense Finance
Lease Payment Payable 7 7 8 - -
Trust Fees 120 107 95 - -
Miscellaneous Expense 117 123 - - -
Insurance Expense 42 40 39 - -
Trading Gain/Loss ( 20 ) ( 90 ) ( 83 ) - -
Miscellaneous Income 49 3 - - -
Repairs and Maintenance 1 1 1 - -
Fees and Commission 140 149 109 - -

Other Transactions with

Associates 27(d)
Loans and Advances 480 500 2,820 8,261 8,043
Interest Income 251 344 494 58 57

Related Parties under

Common Ownership 27(d)
Right-of-use Asset 1,684 378 833 3,911 2,417
Lease Liabilities 1,480 285 200 2,822 1,710
Depreciation Expense 185 39 655 525 330
Interest Expense 78 3 142 179 68

Key Management Personnel 27(d)

Compensation 905 1,006 1,107 - -

Retirement Plan 27(c) 160 238 74 8,349 6,603

In the ordinary course of business, the BDO Unibank Group and the Parent Bank have loans,
deposits and other transactions with its related parties and with certain DOSRI as described
below and in the succeeding pages.

(a) Loans to Related Parties

Under existing policies of the BDO Unibank Group and the Parent Bank, these loans bear
interest rates ranging from 0.00% to 9.00% per annum in 2021, 2020 and 2019, which are
substantially the same terms as loans granted to other individuals and businesses of
comparable risks. The General Banking Act and BSP regulations limit the amount of the
loans granted by a bank to a single borrower to 25% of equity. The amount of individual
loans to DOSRI, of which 70% must be secured, should not exceed the amount of the
unencumbered deposit and book value of the investment in the BDO Unibank Group and
the Parent Bank.
 -173 -

The total DOSRI loans of the BDO Unibank Group and the Parent Bank include loans
to officers under the fringe benefit program.
Secured DOSRI loans are collateralized by publicly-listed shares, hold-out on deposits,
chattels and real estate mortgages and are payable within seven days to 20 years.
The total loan releases and collections in 2021 amounted to P26,676 and P15,713 for the
BDO Unibank Group and P26,674 and P15,709 for the Parent Bank, respectively. The
total loan releases and collections in 2020 amounted to P5,081 and P10,265 for the BDO
Unibank Group and P5,074 and P10,257 for the Parent Bank, respectively. The total loans
collections and releases in 2019 amounted to P25,590 and P49,217 for the BDO Unibank
Group and P25,586 and P49,214 for the Parent Bank, respectively.
(b) Deposits from Related Parties
The total deposits made by the related parties amounted to P471,510, P395,976 and
P583,554 in 2021, 2020 and 2019 for the BDO Unibank Group, and P471,164, P395,029
and P583,025 in 2021, 2020 and 2019 for the Parent Bank, respectively, and bearing
interest rates range of 0.00% to 4.53% in 2021, 2020 and 2019. The related interest
expense from deposits amounted to P795, P860 and P1,611 in 2021, 2020 and 2019,
respectively (see Note 24).

(c) Transactions with Retirement Plan

Unibank Group as of December 31, 2021 and 2020 and for each of the three years ended
are as follows:
Amounts of Transaction Outstanding Balance
Related Party Category 2021 2020 2019 2021 2020

Loans to employees
BDO Unibank, Inc. P - P - P - P 7 P 10
Investment in shares of
BDO Unibank, Inc. - - - 48 16
BDO Leasing - - - 2 2
Deposit liabilities
(including LTNCDs)
BDO Unibank, Inc. - - - 8,294 6,577
Trading gain
BDO Unibank, Inc. 158 235 65 - -
Interest expense
BDO Unibank, Inc. - 1 7 - -
Rental income
BDO Unibank, Inc. 2 2 2 - -
 -174 -

The
the Parent Bank as of December 31, 2021 and 2020 and for each of the three years ended
are as follows:
Amounts of Transaction Outstanding Balance
Related Party Category 2021 2020 2019 2021 2020

Loans to employees
BDO Unibank, Inc. P - P - P - P 7 P 10
Investment in shares of
BDO Unibank, Inc. - - - 48 16
Deposit liabilities
(including LTNCDs)
BDO Unibank, Inc. - - - 8,294 6,577
Trading gain
BDO Unibank, Inc. 158 235 65 - -
Interest expense
BDO Unibank, Inc. - 1 7 - -
Rental income
BDO Unibank, Inc. 2 2 2 - -

Details of the contributions of the BDO Unibank Group and the Parent Bank, and benefits
paid out by the plan to the employees are presented in Note 26.

(d) Other Transactions with Related Parties

A summary of other transactions of the Parent Bank with subsidiaries and associates and
other related parties are shown in the section that follows. These transactions are generally
unsecured and payable in cash, unless otherwise stated.

(i) Transactions with and between subsidiaries have been eliminated in the BDO Unibank

(1) Loans and Advances to Subsidiaries

The Parent Bank grants noninterest-bearing advances to subsidiaries for working capital
requirements, which are unsecured, payable in cash and without fixed repayment terms.
The total advances granted and collected amounted to P111 and P28, P46 and P44, and
P25 and P79, in 2021, 2020 and 2019, respectively. Outstanding advances to
subsidiaries recognized as part of Accounts receivable under Loans and Other
amounted to P111 and
P27 as of December 31, 2021 and 2020, respectively (see Note 11).

The Parent Bank also grants both secured and unsecured interest-bearing loans to
subsidiaries with outstanding balance of P2,801 and P5,117 as of December 31, 2021
and 2020, respectively, and are presented as part of Loans and discounts under Loans

(see Note 11). The total loans granted amounted to P24,900, P37,076 and P48,009
while total loans collected amounted to P27,215, P35,593 and P50,183 for 2021, 2020
and 2019, respectively. These loans are payable in cash with a term between seven
days to five years. Interest income recognized on these is presented as part of Interest
tatements of income (see Note 23). Interest rate on
these loans ranges from 2.50% to 3.50%, 2.27% to 5.75% and 2.50% to 6.00% per
annum in 2021, 2020 and 2019, respectively.
 -175 -

(2) Income to the Parent Bank

BDO subsidiaries engaged the Parent Bank, under service agreements to provide
various support such as maintenance, administration of properties/assets management,
supplies procurement, facilities management, accounting functions, loan
documentation, safekeeping/custodianship of securities and collateral documents,
credit card services, human resources management, information technology needs,
internal audit, corporate secretarial services, remittance transactions support, legal
assistance on all loan and/or property/asset-related litigation, credit investigation
services, security services and investigation requirements, and assistance on all
tax-related issues. The service agreement shall continue to be in force unless
terminated by either party through a written notice, at least 30 calendar days prior to
the date intended for termination. The services fees are payable in cash at the
beginning of each month and shall be exclusive of actual costs and expenditures of the
Parent Bank in relation to the provision of the services, which shall be reimbursed by
the subsidiaries to the Parent Bank. The total service fees are presented as part of
Service charges, fees and commissions under Other Operating Income account in the
tatements of income (see Note 25). There are no outstanding balance
arising from these transactions as of December 31, 2021 and 2020. Total service fees
amounted to P874, P796 and P792 in 2021, 2020 and 2019, respectively.

BDO Life has an existing Investment Management Agreement with the Parent Bank.
For services rendered, BDO Life pays the Parent Bank management fees in cash
equivalent to certain percentage based on the average daily balance of the fund and are
deducted quarterly from the fund. The total trust fees is presented as part of Trust fees
tatements of income
(see Note 25). Outstanding balances arising from this as of December 31, 2021 and
2020 is included as part of Accounts receivable under Loans and Other Receivables
(see Note 11). The total trust fees amounted to P120, P107 and P95 in 2021, 2020 and
2019, respectively.

Certain subsidiaries lease office space and equipment from the Parent Bank. The total
rent collected from the subsidiaries is included as part of Miscellaneous under Other
income (see Note 25). The term
of the lease office space is five years and is payable in cash. There are no outstanding
receivable from subsidiaries as of December 31, 2021 and 2020. The total rent income
amounted to P136, P132 and P124 in 2021, 2020 and 2019, respectively.

(3) Expenses of the Parent Bank

The Parent Bank, as a lessee, recognized right-of-use assets related to lease of space
from BDO Network, BDOSHI and Averon for its branch operations, amounting to
P97 and P104, as of December 31, 2021 and 2020, respectively, which are presented
as part of Premises, Furniture, Fixtures and Equipment (see Note 12). Depreciation
expense and amortization of the right-of-use assets arising from these transactions
amounted to P14, P13 and P13 in 2021, 2020 and 2019, respectively, and presented as
part of Occupancy under Other Operating Expenses
income (see Note 25). The total interest expense on lease liability is included as part of
Interest expense on finance lease liabilities under the Interest Expense account in the
, 2020 and 2019 statement of income which amounted to P7, P7 and
P8, respectively (see Note 24). Outstanding balance arising from these transactions
amounted to P113, P118 and P129 as of December 31, 2021, 2020 and 2019, respectively,
and is included as part of Lease liabilities under Other Liabilities (see Note 21).
 -176 -

The total amount paid for repairs and maintenance of leased properties is included as
part of Repairs and Maintenance account under Other Operating Expenses in the
Parent Bank statements of income (see Note 25). The total repairs and maintenance
expense amounted to P1 in 2021, 2020 and 2019.

The Parent Bank pays for the group life insurance of its employees and life and
accident insurance of enrolled qualified remitters of Kabayan accounts to BDO Life.
The total amount paid is included as part of Insurance Expense account under Other
Operating Expenses in the Parent Bank s statements of income (see Note 25).
Total insurance expense amounted to P42, P40 and P39 in 2021, 2020 and 2019,
respectively.

In 2020, the Parent Bank purchased receivables from BDO Leasing (see Note 30.3).
This resulted to a loss amounting to P290 which was initially booked under
Miscellaneous Asset and will be amortized over the term of the loan. The amortized
loss incurred was recognized as part of Miscellaneous Expense account under Other
Operating Expenses in the Parent Bank statements of income amounting to P117 and
P123 in 2021 and 2020, respectively (see Note 25). The related service fee incurred from
the purchase of receivables in 2019 amounted to P13 and was recognized as part of Fees
and Commission account under Other Operating Expenses
statements of income. No similar transaction occurred in 2021 and 2020.

The Parent Bank pays commission to BDO Network and BDO Private related to the
referred trust services to the Parent Bank. Also, the Parent Bank pays for various
services rendered by foreign subsidiaries. The amount paid for both commission and
services are included as part of Fees and Commission account under Other Operating
Expense s of income. The total payments amounted to
P140, P149 and P96 in 2021, 2020 and 2019, respectively.

(4) Derivatives

In 2021 and 2020, the Parent Bank entered into derivative transactions with certain
subsidiary in the form of currency forwards and cross currency swaps. As of
December 31, 2021 and 2020, the outstanding balance of derivatives assets and
liabilities are presented as part of Financial assets at FVTPL under Trading and
Investment Securities account (see Note 10.1) and Derivatives with negative fair
values under Other Liabilities account in the statements of financial position
(see Note 21).

(5) Deposit Liabilities

The total deposits made by the subsidiaries to the Parent Bank during 2021, 2020 and
2019 amounted to P669,405, P559,611 and P706,563, respectively. These are with
yearly corresponding withdrawals amounting to P668,833 for 2021, P561,492 for 2020
and P705,306 for 2019. These deposits bear interest rates of 0.00% to 0.50% in 2021,
0.00% to 3.25% in 2020 and 0.00% to 6.65% in 2019. The related interest expense
from these deposits are included as part of Interest Expense account on deposit
liabilities in the statements of income (see Note 24).
 -177 -

(ii) Other transactions with associates are shown below.

Loans and Advances to Associates
As of December 31, 2021 and 2020, the outstanding secured and unsecured interest-
bearing loans and advances to associates amounting to P8,261 and P8,225 for the
BDO Unibank Group and P8,261 and P8,043 for the Parent Bank, respectively, and
are presented as part of Loans and discounts and Accounts receivable under Loans
and Other Receivables account in the statements of financial position (see Note 11).

These loans are payable in cash between seven and a half years to twelve years. The
total collections on loans and advances amounted to P444, P75 and P1,987 for BDO
Unibank Group and P262, P57 and P1,970 for the Parent Bank in 2021, 2020 and
2019, respectively.

Annual interest rate on these loans ranges from 2.94% to 2.94%, 2.95% to 7.70% and
5.00% to 7.70% for 2021, 2020 and 2019, respectively. The related interest income is
presented as part of Interest Income on loans and other receivables in the BDO
te 23). As of December 31, 2021, 2020
and 2019, there were no impairment losses recognized on these loans and advances.

(iii) Transaction of the Parent Bank with related parties under common ownership is
shown below.

The Parent Bank, as a lessee, recognized right-of-use assets related to lease of space
from related parties for its branch operations, amounting to P3,911 and P2,417 as
of December 31, 2021 and 2020, respectively, which is presented as part of Premises,
Furniture, Fixtures and Equipment (see Note 12). Amortization expense on
right-of-use assets arising from this transaction, amounting to P185, P39, and P655 in
2021, 2020 and 2019, respectively, and is presented as part of Occupancy under Other
Operating Expenses account in the statement of income (see Note 25).

The total interest expense on lease liabilities from related parties, included as part of
Interest expense on finance lease liabilities under the Interest Expense account
amounted to P78, P3, and P142 in 2021, 2020 and 2019, respectively, in the Parent
s of income (see Note 24). Outstanding balances arising from this
transaction amounted to P2,822 and P1,710 as of December 31, 2021 and 2020,
respectively, and is included as part of Lease liabilities under Other Liabilities
(see Note 21).

The terms of the lease are from one to 28 years and is payable in cash.
 -178 -

(iv) Key Management Personnel Compensation

The compensation and benefits given to BDO

key management are as follows (see Note 26.1):

BDO Unibank Group

2021 2020 2019

Salaries and other benefits P 1,381 P 1,368 P 1,445

Retirement expense 162 221 208

P 1,543 P 1,589 P 1,653

Parent Bank
2021 2020 2019

Salaries and other benefits P 819 P 849 P 957

Retirement expense 86 157 150

P 905 P 1,006 P 1,107

28. TRUST OPERATIONS

The 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 BDO Unibank Group and the
e BDO
Unibank Group [see Note 36(h)].

BDO Unibank Group Parent Bank

2021 2020 2021 2020

Investments P 1,769,064 P 1,618,325 P 1,223,191 P 1,116,591

Others 9,654 10,804 7,679 7,831

P 1,778,718 P 1,629,129 P 1,230,870 P 1,124,422

In compliance with the requirements of the General Banking Act relative to the

(a) Investment in government securities which are shown as part of Investment securities at
amortized cost with a total face value of P18,435 and P15,735 as of December 31, 2021
and 2020 (see Note 10.3), respectively, in BDO Unibank Group and, P12,178 and P10,778
as of December 31, 2021 and 2020, respectively, in the Parent Bank are deposited with the

obligations; and,

(b) A certain percentage of the trust income is transferred to surplus reserves. This yearly
transfer is required until the surplus reserve for trust function is equivalent to 20% of BDO
ber 31, 2021 and 2020, the
additional reserve for trust functions amounted to P263 and P272 for BDO Unibank
Group and P263 and 223, respectively, for the Parent Bank, and is included as part of
Surplus Reserves account in statements of changes in equity (see Note 22.4).
 -179 -

Income from trust operations, shown as Trust fees under Other Operating Income account,
amounted to P4,364, P3,811 and P3,532 for the years ended December 31, 2021, 2020 and
2019, respectively, in BDO Unibank Group statements of income and P3,477, P3,035 and
P2,727 for the years ended December 31, 2021, 2020 and 2019, respectively, in the Parent
Bank statements of income (see Note 25).

29. UNIT-LINKED FUNDS

VUL insurance contracts of BDO Life are life insurance policies wherein a portion of the
premiums received are invested in VUL funds, which are composed mainly of investments in
equity and debt securities. The withdrawal or surrender amount of a VUL policy can be

In 2013, BDO Life obtained the approval from IC to issue VUL products, where payments to
policyholders are linked to internal investment funds set up by BDO Life. The VUL funds are
managed by the Trust and Investment Group of the Parent Bank.

As of December 31, 2021 and 2020, BDO Life has 12 VUL funds. The details of the
investment funds, which comprise the assets backing the unit-linked liabilities, are presented in
the table below. The assets and liabilities of these investment funds have been consolidated to
the appropriate accounts in t

2021 2020
Assets:
Cash and cash equivalents P 153 P 24
Financial assets at FVTPL 24,592 17,969
Other receivables 36 35

P 24,781 P 18,028
Liabilities and Equity:
Other liabilities P 191 P 216
Net assets attributable to unitholders 24,590 17,812

P 24,781 P 18,028

30. MERGERS AND ACQUISITIONS

30.1 Subscription of Additional Shares in BDO Remit International Holdings, B.V.

(formerly CBN Grupo)

On October 21, 2016, BDO Capital subscribed to an additional 3,273,000 shares in

BDO Remit International Holdings, B.V. (BDO RIH) for P170, making BDO Capital
the owner of approximately 96% of the outstanding capital stock of BDO RIH
(see Note 15.2). The total goodwill recognized amounted to P123 and is presented as part

position (see Notes 15.2 and 15.3).

 -180 -

On December 9, 2020, BDO Capital approved the corporate dissolution and liquidation of
BDO RIH and to acquire its assets and assume its liabilities. Since the liabilities to be assumed
by BDO Capital is higher than the assets it will absorb, BDO Capital also approved the
additional investment in BDO RIH amounting to P276. This was approved by the BSP on
November 9, 2021 and by the BDO RIH shareholders on February 2, 2022 (see Note 33.2).

30.2 Merger of BDO Nomura and BDO Securities

On June 23, 2020, the Parent Bank and Nomura Asia came to an agreement and signed a term
sheet on the proposed buy-out of Nomura Asia's 49% equity stake in BDO Nomura. The
BOD of the Parent Bank authorized BDO Capital to acquire the shares of Nomura Asia and
the transaction was completed on November 25, 2020 with settlement amount of P42.

On July 2, 2020, the BOD of BDO Nomura and BDO Securities, at their respective meetings,
approved the merger of the two companies, with BDO Securities as the surviving entity, and
the Plan of Merger. The same were likewise approved by the respective stockholders of the
two entities on July 7, 2020. The merger was approved by the SEC on November 25, 2020
and was implemented on December 1, 2020.

30.3 Sale of Assets of BDO Leasing

On May 25, 2019, the BOD of BDO Unibank approved the restructuring of the leasing
business of the BDO Unibank Group. Under the restructuring, a new, privately-held company
BDO Finance was incorporated on December 9, 2019 to carry on the leasing business of the
BDO Unibank Group. BDO Leasing, on the other hand, has sold substantially all of its assets
to BDO Unibank, BDO Finance and other subsidiaries.

On October 9, 2020, the BOD of BDO Finance approved the purchase of the BDO Rental
shares owned by BDO Leasing. The sale was consummated through a Deed of Absolute Sale
of Shares with BDO Rental becoming a wholly-owned subsidiary of BDO Finance. BDO
Finance started its commercial operations on October 19, 2020. BDO Leasing remains a listed
entity and will be re-purposed into a holding company, upon approval by the regulators.

30.4 Dissolution of BDO Remit Italia

On June 13, 2020, BDO Remit Italia has completed its liquidation and made partial repatriation
of funds to BDO Strategic Holdings, Inc. amounting to P7. Final capital return was made on
July 1, 2021 amounting to P51.
 -181 -

31. TAXES
31.1 Current and Deferred Taxes
On March 26, 2021, R.A. No. 11534, Corporate Recovery and Tax Incentives for Enterprises
(CREATE) Act, as amended, was signed into law and shall be effective beginning July 1,
2020. The following are the major changes brought about by the CREATE Act that are
relevant to and considered by the BDO Unibank Group:
Regular corporate income tax (RCIT) rate was reduced from 30% to 25% starting
July 1, 2020;
minimum corporate income tax (MCIT) rate was reduced from 2% to 1% starting
July 1, 2020 until June 30, 2023; and,
the allowable deduction for interest expense is reduced from 33% to 20% of the
interest income subjected to final tax.
As a result of the application of the lower RCIT rate of 25% starting July 1, 2020, the current
income tax expense and income tax payable, as presented in the 2020 annual income tax return
(ITR) of the BDO Unibank Group and the Parent Bank, was lower by P1,378 and P1,300,
respectively, than the amount presented in the 2020 financial statements, and such amount was
charged to 2021 profit or loss.

In 2021, the recognized net deferred tax assets as of December 31, 2020 was remeasured at 25%
income tax rate. This resulted in a decline in the recognized deferred tax asset in 2020 for BDO
Unibank Group and the Parent Bank by P684 and P650, respectively. Such adjustment was
charged to 2021 profit or loss of BDO Unibank Group and Parent Bank by P1 and P3 and in
other comprehensive income by P683 and P647, respectively.

The components of tax expense for the years ended December 31 follow:

BDO Unibank Group

2021 2020 2019
Reported in profit or loss:
Current tax expense:
Regular corporate income tax (RCIT)
at 25% and 30% P 9,422 P 14,762 P 12,310
Minimum corporate income tax (MCIT)
at 1% and 2% ( 5) 33 7
Adjustment in 2020 income taxes due to
change in income tax rate ( 1,378) - -
Adjustment to current income tax from
prior year ( 13) - -
Final taxes at 20%, 15%, 10% and 7.5% 2,689 2,286 2,248
10,715 17,081 14,565
Deferred tax expense (income) relating to
origination and reversal
of temporary differences 2,213 695 454
Effect of the change in income tax rate 1 - -
Application of previously unrecognized MCIT ( 22) - -

P 12,907 P 17,776 P 15,019

 -182 -

BDO Unibank Group

2021 2020 2019
Reported in other comprehensive income:
Actuarial losses (P 1,754) P 321 (P 1,016)
Effect of the change in income tax rate 683 - -
Fair value of financial assets at FVOCI 4 - ( 30)
Revaluation increment ( 4) - ( 23)
(P 1,071 ) P 321 ( P 1,069)

Parent Bank
2021 2020 2019
Reported in profit or loss:
Current tax expense:
RCIT at 25% and 30% P 8,411 P 13,998 P 11,219
Final taxes at 20%, 15%, 10% and 7.5% 2,165 1,801 1,745
Adjustment in 2020 income taxes due to
change in income tax rate ( 1,300 ) - -
Adjustment to current income tax from
prior year ( 13 ) - -
9,263 15,799 12,964
Deferred tax expense relating to
origination and reversal of
temporary differences 2,112 483 412
Effect of the change in income tax rate 3 - -

P 11,378 P 16,282 P 13,376

Reported in other comprehensive income:
Actuarial losses (P 1,649) P 314 ( P 960 )
Effect of the change in income tax rate 647 - -
Fair value of financial assets at FVOCI 12 - -
Revaluation increment ( 4) - ( 23 )

(P 994 ) P 314 ( P 983 )

The reconciliation of the tax on pretax profit computed at the statutory tax rates to tax expense is
shown below and in the succeeding page.
BDO Unibank Group
2021 2020 2019

Tax on pretax profit at 25% and 30% P 13,940 P 13,809 P 17,756

Adjustment for income subjected to lower
income tax rates ( 561) ( 879) ( 1,072)
Adjustment in 2020 income taxes due to
change in income tax rate ( 1,377) - -
Tax effects of:
Income exempt from tax ( 2,884) ( 4,062 ) ( 4,325)
Non-deductible expenses 4,245 9,736 3,557
Deductible temporary differences not recognized ( 312) ( 903) ( 551)
Application of previously unrecognized MCIT ( 29 ) - ( 15)
Adjustment to current income tax from prior year ( 13 ) - -
Net operating loss carryover (NOLCO)
not recognized 4 91 ( 89)
Utilization of previously unrecognized NOLCO - ( 1) ( 25)
Others ( 106) ( 15) ( 217)

Tax expense reported in profit or loss P 12,907 P 17,776 P 15,019

 -183 -

Parent Bank
2021 2020 2019
Tax on pretax profit at 25% in 2021 and
30% in 2020 and 2019 P 13,515 P 13,467 P 17,283
Adjustment for income subjected to lower
income tax rates ( 436) ( 865)( 872)
Adjustment in 2020 income taxes due to
change in income tax rate ( 1,297) - -
Tax effects of:
Income exempt from tax ( 4,120) ( 4,969 ) ( 5,729)
Non-deductible expenses 4,103 9,519 3,305
Deductible temporary differences not recognized ( 374) ( 870 ) ( 611)
Adjustment to current income tax from prior year ( 13) - -

Tax expense reported in profit or loss P 11,378 P 16,282 P 13,376

Components of the net deferred tax assets (see Note 15) as of December 31 follow:

Statements of Financial Position

BDO Unibank Group Parent Bank
2021 2020 2021 2020

Deferred tax assets:

Allowance for impairment P 4,088 P 6,376 P 3,747 P 5,858
Unamortized past service costs 2,577 2,894 2,280 2,732
Retirement obligation (net of OCI) 606 ( 803) 568 ( 778)
Recognition of right-of-use
assets and lease liabilities 67 23 47 21
Others 66 80 - -
7,404 8,570 6,642 7,833

Deferred tax liabilities:

Revaluation increment 337 409 335 408
Capitalized interest 33 42 33 42
Retirement asset (net of OCI) - - - -
Changes in fair values of
financial assets at FVOCI 11 6 12 -
Lease income differential 2 2 - -
Others 253 200 - -
636 659 380 450

Net deferred tax assets P 6,768 P 7,911 P 6,262 P 7,383

Movements in net deferred tax assets for the years ended December 31 follow:
BDO Unibank Group

Statements of Income
2021 2020 2019

Allowance for impairment P 2,289 P 160 P 24

Unamortized past service costs 317 ( 591) ( 966 )
Retirement obligation ( 405) 1,059 1,292
Recognition of right-of-use
assets and lease liabilities ( 45) 47 ( 70 )
Lease income differential - - 146
Capitalized interest ( 9) ( 3) ( 3)
Others 67 23 31

Deferred tax expense (income) P 2,214 P 695 P 454

 -184 -

Parent Bank
Statements of Income
2021 2020 2019

Retirement obligation (P 412) P 1,012 P 1,313

Unamortized past service costs 451 ( 576) ( 974 )
Lease income differential - - 146
Allowance for impairment 2,111 - -
Recognition of right-of-use
assets and lease liabilities ( 26) 49 ( 70 )
Capitalized interest ( 9) ( 2) ( 3)

Deferred tax expense P 2,115 P 483 P 412

Statements of Comprehensive Income

BDO Unibank Group Parent Bank
2021 2020 2019 2021 2020 2019

Movements in actuarial losses (P 1,004) P 321 ( P 1,016) (P 934) P 314 (P 960)

Movements in fair value
of financial assets at FVOCI 5 - ( 30) 12 - -
Movements in revaluation
increment ( 72) - ( 23) ( 72) - ( 23)

Deferred tax income (income) (P 1,071) P 321 ( P 1,069) (P 994) P 314 (P 983)

The BDO Unibank Group is subject to MCIT, which is computed at 1% of gross income, as
defined under tax regulations or RCIT, whichever is higher.

The breakdown of NOLCO and MCIT with the corresponding validity periods are as follows
for the BDO Unibank Group (nil for the Parent Bank):

Year NOLCO MCIT Valid Until

2021 P - P 1 2024
2020 - 1 2025

P - P 2

The amounts of unrecognized deferred tax assets arising from NOLCO and other
temporary differences as of December 31, 2021 and 2020 are as follows:

BDO Unibank Group

2021 2020
Tax Base Tax Effect Tax Base Tax Effect

Allowance for impairment P 57,101 P 14,275 P 43,447 P 13,034

NOLCO - - 35 11
MCIT 2 2 33 32
Others 1,037 259 1,232 370

P 58,140 P 14,536 P 44,747 P 13,447

 -185 -

Parent Bank
2021 2020
Tax Base Tax Effect Tax Base Tax Effect

Allowance for impairment P 56,568 P 14,142 P 42,875 P 12,862

Others 1,021 255 1,021 306

P 57,589 P 14,397 P 43,896 P 13,168

The BDO Unibank Group and the Parent Bank continue claiming itemized deduction for
income tax purposes.

31.2 Gross Receipts Tax

Gross Receipts Tax (GRT), pursuant to Sections 121 and 122 of the Tax Code, is imposed on
banks, non-banks financial intermediaries and finance companies (per RA 9238).

GRT is levied on the BDO Unibank Group

commission and discounts arising from instruments with maturity of five years or less and
other income. The tax is computed at the prescribed rates of either 7%, 5% or 1% of the
related income (per RA 9337).

31.3 Documentary Stamp Tax

Documentary stamp tax (DST) (at varying rates) is imposed on the following:

(a) Bank checks, drafts, or certificate of deposit not bearing interest, and other instruments;

(b) Bonds, loan agreements, promissory notes, bills of exchange, drafts, instruments and
securities issued by the Government or any of its instrumentalities, deposit substitute debt
instruments, certificates of deposits bearing interest and other notes payable at sight or on
demand;

(c) Acceptance of bills of exchange and letters of credit; and,

(d) Bills of lading or receipt.

On December 19, 2017, RA No. 10963 known as Train Law was passed amending the rates of
DST, the significant provisions of which are summarized as follows:
(a) On every issue of debt instruments, there shall be collected a DST of one peso and fifty
centavos on each two hundred pesos or fractional part thereof of the issue price of any
such debt instrument. Provided, that for such debt instruments with terms of less than
one year, the DST to be collected shall be of a proportional amount in accordance with the
ratio of its term in number of days to 365 days. Provided further that only one
DST shall be imposed on either loan agreement or promissory notes to secure such loan.
(b) On all sales or transfer of shares or certificates of stock in any corporation, there shall be
collected a DST of one peso and 50 centavos on each two hundred pesos, or fractional
part thereof, of the par value of such stock.
 -186 -

(c) On all bills of exchange or drafts, there shall be collected a DST of 60 centavos on each
two hundred pesos, or fractional part thereof, of the face value of any such bill of
exchange or draft.

(d) The following instruments, documents and papers shall be exempt from DST:

Borrowings and lending of securities executed under the Securities Borrowing and
Lending Program of a registered exchange, or in accordance with regulations
prescribed by the appropriate regulatory authority;

Loan agreements or promissory notes, the aggregate of which does not exceed
P250 thousand or any such amount as may be determined by the Secretary of Finance,
executed by an individual for his purchase on installment for his personal use;

Sale, barter or exchange of shares of stock listed and traded through the local stock
exchange for a period of five years from the effectivity of RA No. 9243;

Fixed income and other securities traded in the secondary market or through an
exchange;

Derivatives including repurchase agreements and reverse repurchase agreements;

Bank deposit accounts without a fixed term or maturity; and,

Interbank call loans with maturity of not more than seven days to cover deficiency in
reserve against deposit liabilities.

31.4 Supplementary Information Required by the Bureau of Internal Revenue (BIR)

The BIR issued Revenue Regulations (RR) No. 15-2010 on November 25, 2010, which
required certain tax information to be disclosed as part of the notes to the financial statements.
The supplementary information is, however, not a required part of the basic financial
statements prepared in accordance with PFRS; it is neither a required disclosure under the
Philippine SEC rules and regulations covering form and content of financial statements under
the revised Securities Regulation Code Rule 68.

The Parent Bank presented this tax information required by the BIR as a supplementary
schedule filed separately from the basic financial statements.
 -187 -

32. EARNINGS PER SHARE

Basic earnings per share attributable to shareholders of the BDO Unibank Group were
computed as follows:
2021 2020 2019

Net profit attributable to shareholders

of the Parent Bank P 42,791 P 28,246 P 44,194
Dividends on preferred shares ( 340) ( 339) ( 339 )
Net profit available to common shares 42,451 27,907 43,855
Divided by the weighted average number
of outstanding common shares (in millions) 4,385 4,383 4,378

Basic earnings per share P 9.68 P 6.37 P 10.02

Diluted earnings per share attributable to shareholders of the BDO Unibank Group were
computed as follows:
2021 2020 2019

Net profit attributable to shareholders

of the Parent Bank P 42,791 P 27,907* P 43,855*
Divided by the weighted average number
of outstanding common shares (in millions):
Outstanding common shares 4,385 4,383 4,378
Potential common shares from assumed
conversion of preferred shares 43 * *
Potential common shares from stock
option plan ** ** **

Total weighted average number

of common shares after assumed
conversion of convertible preferred shares 4,428 4,383 4,378

Diluted earnings per share P 9.66 P 6.37 P 10.02

* Net profit attributable to shareholders of the Parent Bank is reduced by dividends on preferred share as these
were not assumed to be converted.

** Potential common shares from assumed conversion of stock option plan made through primary issuance do not
significantly affect the computation of diluted earnings per share.
 -188 -

33. EVENTS AFTER THE REPORTING PERIOD

33.1 Dividend

On January 29, 2022

dividend of P339. The dividends will be paid within 60 days from dividend declaration date.

33.2 Dissolution of BDO RIH

On February 2, 2022, the shareholders of BDO RIH approved the dissolution of the company,
additional capital infusion of the shareholders, completion of all acts to implement the
dissolution, appointment of liquidator and custodian and the stepping down of the Board of
Directors (see Note 30.1).

33.3 Issuance of Fixed Rate Peso Bonds

On January 28, 2022, the Parent Bank issued P52,700 million Peso-denominated fixed rate
Association of Southeast Asian Nations (ASEAN) Sustainability Bonds under its P365 billion
bond program. The bonds have a tenor of two years and a fixed rate of 2.90% per annum.

34. COMMITMENTS AND CONTINGENCIES

34.1 Litigations

BDO Unibank Group has pending claims and/or is a defendant in various legal actions arising
from the ordinary course of business operations. As of December 31, 2021, management
believes that no such legal proceedings are expected to have material adverse effect on BDO
.

34.1.1 Applicability of RR 4-2011

On March 15, 2011, the BIR issued Revenue Regulations No. 4-2011 (RR 4-2011) regarding the
proper allocation of costs and expenses amongst income earnings of banks and other financial
institutions for income tax reporting purposes. RR 4-2011 prescribed a special method of
allocation of cost and expenses for banks such that when computing the amount allowable as
deduction from regular banking unit operations, all costs and expenses should first be allocated
between the regular banking unit and Foreign Currency Deposit Unit (FCDU)/expanded
FCDU or offshore banking unit.

On April 6, 2015, Consortium of Banks (Petitioners) filed a Petition for Declaratory Relief with
Application for Temporary Restraining Order and/or Writ of Preliminary Injunction, docketed
as Civil Case No. 15-287 with the Regional Trial Court (RTC) of Makati. BDO Unibank Inc.,
and BDO Private Bank, Inc. are among the Petitioners in Civil Case No. 15-287 assailing the
validity of RR 4-2011.

In the Petition, the Petitioners sought to annul RR No. 4-2011 as there is no provision in the
National Internal Revenue Code which authorized the issuance of RR 4-
and expenses be allocated to its different income streams.

The Petitioners also claimed that RR 4-2011 deprived them of their legal right under the Tax
Code to claim ordinary and necessary expenses as tax deductions.
 -189 -

On April 8, 2015, the RTC of Makati issued a temporary restraining order, enjoining the BIR
from enforcing RR 4-2011. Subsequently, the RTC of Makati issued a Writ of Preliminary
Injunction also enjoining the BIR from enforcing, carrying out, or implementing in any way or
manner RR 4-2011 against the Petitioners, including the issuance of preliminary assessment
notice or final assessment notice, as the case may be, based on the revenue regulations, pending
litigation, unless sooner dissolved.

On May 25, 2018, the RTC declared RR 4-2011 as null and void. The writs of preliminary
injunction issued by the RTC on April 25, 2015 and February 28, 2018 were also made
permanent, thereby enjoining Department of Finance (DOF) and BIR from implementing
RR 4-2011 and prohibiting them from issuing a preliminary assessment notice or final
assessment notice, or deciding any administrative matter pending before it, according to or in
relation to said regulation.

On July 10, 2018, the DOF and BIR filed a Motion for Extension of Time to File a Petition for

granted the Motion for Extension.

On August 9, 2018, DOF and BIR filed a Petition for Review on Certiorari dated August 1,
: (i) the RTC has
no jurisdiction over petitions assailing the constitutionality and validity of tax laws, rules and
regulation, and other administrative issuance of the BIR; (ii) the Court of Tax Appeals has the
exclusive jurisdiction to determine the constitutionality or validity of Tax Laws, Rules and
Regulations issued by the Commissioner of Internal Revenue; and, (iii) RR 4-2011 is a valid
regulation issued pursuant to the rule-making power of the DOF and the BIR.

In a Resolution dated March 27, 2019, the Supreme Court ordered Respondents to file
their Comment on the Petition. On August 5, 2019, the Consortium of Banks filed their
Comment on/Opposition to the Petition for Review on Certiorari.

All other Respondents have filed their respective Comments and/or Oppositions to the Petition.

The case remains pending as of December 31, 2021.

34.1.2 First e-Bank

In 2002, First e-

amount of P10,000, PDIC will provide BDO Unibank P10,000 of Financial Assistance and

About P5,000 of the financial assistance was released to BDO Unibank and the remaining
P5,000 was deposited in escrow with BDO - TIG in accordance with the escrow agreement
dated October 23, 2002 entered into by BDO Unibank, PDIC, and BDO - TIG.
 -190 -

In August 2016, PDIC authorized the release of a total amount of P4,650 from escrow
inclusive of proportional interest. However, as of August 26, 2016, the amount of
P1,224 remains in escrow, which includes: (i) P602, which covers assets BDO Unibank
still considers capable of delivery worth P214 and the remaining assets PDIC classified as
undeliverable; and (ii) all interest earnings thereon. Unable to agree on the release of the
remaining amount in escrow, on September 20, 2016, the PDIC filed a Complaint for
Specific Performance and Damages against BDO Unibank, which case was raffled to
RTC Makati City Branch 60.

On October 14, 2016, BDO Unibank filed its Answer to the Complaint affirming that it has
assumed P10,000 in liabilities of FeB and is thus entitled to release of the remaining escrow of
P1,224.

In a judgement dated May 31, 2018, RTC Makati dismissed the complaint, granted BDO
- TIG to immediately release the remaining escrow
amount, plus interests, to BDO Unibank. PDIC filed Motion for Reconsideration but the same
was denied by RTC Makati. PDIC filed Notice of Appeal. In the Decision dated June 15, 2020,

but the same was denied by the CA in a Resolution dated January 25, 2021. PDIC filed
Petition for Review with the Supreme Court.

On June 18, 2018, the Parent Bank received an amount of P1,243 for the full termination of
escrow. As of December 30, 2021, the difference between the amount received and the
balance of the amount in escrow amounts to P572. This is presented as part of Others under
Other Liabilities account and is not yet recognized as income due to the pending resolution of
the Petition for Review filed by PDIC (see Note 21).

The case is still pending before the Supreme Court as of December 31, 2021.

34.1.3 Others

BDO Unibank Group is also a defendant in various cases pending in courts for alleged claims
against BDO Unibank Group, the outcomes of which are not fully determinable at present.
As of December 31, 2021, management believes that, liabilities or losses, if any, arising from
these claims would not have a material effect on the financial position and results of operations
of BDO Unibank Group and will be recognized if and when a final resolution
by the courts is made on each claim.
 -191 -

34.2 Lease Commitments as Lessor

34.2.1 Finance Leases

BDO Unibank Group, as a lessor, enters into a finance leases covering various equipment and
vehicles with lease term ranging from one to more than five years. To manage its risks over
these finance leases, the BDO Unibank Group retains its legal title over the underlying assets,
and are used as securities over the finance lease receivables. Future minimum lease payments
receivable (MLPR) under this finance lease together with the present value of net minimum
lease payments receivable (NMLPR) follow:

2021 2020
Future PV of Future PV
MLPR NMLPR MLPR of NMLPR

Within one year P 770 P 767 P 239 P 238

After one year but not more than two years 725 705 189 183
After two years but not more than three years 616 506 138 123
After three years but not more than five years 224 129 106 66
More than five years 3 2 10 6

Total MLPR 2,338 2,109 682 616

Unearned lease income ( 229 ) - ( 66) -
Present value of MLPR P 2,109 P 2,109 P 616 P 616

34.2.2 Operating Leases

The BDO Unibank Group and the Parent Bank entered into various operating leases covering
land, offices and equipment with lease terms ranging from less than 1 year to 5.5 years.
Operating lease income, presented under Rental account as part of Other Operating Income

December 31, 2021, 2020 and 2019, amounted to P1,269, P1,430 and P1,526, respectively, for
the BDO Unibank Group and P482, P514 and P523, respectively, for the Parent Bank
(see Note 25).

Future minimum rental receivables as of December 31, 2021 under operating leases follow:

BDO
Unibank Group Parent Bank

Within one year P 1,124 P 471

More than one year to two years 678 315
More than two years to three years 470 233
More than three years to four years 206 165
More than four years to five years 133 70
More than five years 89 7

P 2,700 P 1,261
 -192 -

35. CONTINUING IMPACT OF COVID-19

The year 2021 was marked by sustained efforts to mitigate the impact of the pandemic and
learning to operate with the reality of COVID-19. Following were the measures undertaken
by the BDO Unibank Group during the year:

Since October 2020, branches continued to operate until 4pm, close to operating at pre-
pandemic banking schedules, with certain adjustments made to comply with temporary
stricter guidelines imposed by the Inter-Agency Task Force (IATF) and local government
units;

Digital banking channels, including BDO Pay which was introduced in early 2021,
continued to be enhanced to provide increased and alternative access for clients;

To further strengthen cybersecurity, the Parent Bank institutionalized vulnerability

management measures by performing regular vulnerability assessments and penetration
testing. A Security Operations Center (SOC), supplemented with threat intelligence
providers, is in place to continuously monitor and immediately respond to IT security
events and incidents;

Dual site processing capabilities and team redundancies remained in place to ensure
business continuity; and,

Occupational safety and health standards continued to be maintained to provide a

safe and sanitized environment for both customer and employees through the strict
observance of health and safety protocols. Vaccination efforts and periodic testing
for employees continued to be pursued to minimize infection within the workplace.

With these measures in place to adapt to and address pandemic-related issues in 2021, the
Parent Bank saw more stable operations and increasingly positive results as the economy
continued with its recovery. Overall net impact is an increase in net profit of 52% and 49%
for BDO Unibank Group and the Parent Bank, respectively, compared to that of 2020.
 -193 -

36. SUPPLEMENTARY INFORMATION REQUIRED BY THE BSP

Presented below and in the succeeding pages are the supplementary information required by the
BSP under Section 174 (Appendix 55) of the BSP Manual of Regulations for Banks (MORB) to be
disclosed as part of the notes to financial statements based on BSP Circular No. 1074, Amendments
to Regulations on Financial Audit of Banks.

(a) Selected Financial Performance Indicators

The following are some indicators of the of BDO Unibank Group and Parent
financial performance.
2021 2020 2019
BDO Unibank Group
Return on common equity*:
Net profit 10.5% 7.6% 12.8%
Average common equity
Return on average equity*:
Net profit 10.4% 7.5% 12.6%
Average total capital accounts
Return on average resources*:
Net profit 1.2% 0.9% 1.4%
Average total resources
Net interest margin*:
Net interest income 4.0% 4.4% 4.1%
Average interest earning resources

Parent Bank

Return on common equity*:

Net profit 10.5% 7.6% 12.8%
Average total common equity
Return on average equity*:
Net profit 10.4% 7.6% 12.7%
Average total capital accounts
Return on average resources*:
Net profit 1.3% 0.9% 1.5%
Average total resources

Net interest margin*:

Net interest income 4.0% 4.4% 4.1%

Average interest earning resources

* Average asset, capital, and interest-earning assets are computed as the simple average of outstanding balance of
assets, capital, and interest-earning assets at average of December 2020, March 2021, June 2021, September
2021 and December 2021. (5 data points)
 -194 -

(b) Capital Instruments Issued

As of December 31, 2021 and 2020, the BDO Unibank Group has only two classes of
capital stock, which are common and preferred shares.

(c) Significant Credit Exposures for Loans

The BDO Unibank Group and Parent Bank concentration of credit as to industry for its
receivables from customer s gross of allowance for ECL below (amounts in millions) are
disclosed in Note 4.3.3.
BDO Unibank Group
2021 2020
Amount Percentage Amount Percentage

Financial and insurance activities P 397,823 16.6% P 335,487 14.8%

Activities of private household
as employers and undifferentiated
goods and services and producing
activities of households for own use 356,129 14.8% 315,727 13.9%
Real estate activities 307,048 12.8% 308,681 13.6%
Wholesale and retail trade 282,446 11.8% 271,485 12.0%
Electricity, gas, steam and
air-conditioning supply 282,036 11.8% 265,210 11.7%
Manufacturing 206,445 8.6% 195,586 8.6%
Transportation and storage 88,043 3.7% 92,578 4.1%
Arts, entertainment and recreation 77,010 3.2% 77,734 3.4%
Construction 68,951 2.9% 69,067 3.1%
Information and communication 42,845 1.8% 34,477 1.5%
Accommodation and food service
activities 39,937 1.7% 39,699 1.8%
Education 37,199 1.5% 32,296 1.4%
Human health and social service activities 30,653 1.3% 29,859 1.3%
Water supply, sewerage, waste
management and remediation activities 26,912 1.1% 24,017 1.1%
Agriculture, forestry and fishing 15,266 0.6% 15,011 0.7%
Mining and quarrying 10,175 0.4% 16,172 0.7%
Professional, scientific, and technical
activities 9,642 0.4% 10,255 0.5%
Administrative and support services 7,592 0.3% 8,237 0.4%
Public administrative and defense;
compulsory social security 693 0.0% 723 0.0%
Activities of extraterritorial and
organizations and bodies - 0.0% 5 0.0%
Other service activities 113,348 4.7% 121,396 5.4%

P 2,400,193 100% P 2,263,702 100%

 -195 -

2021 2020
Amount Percentage Amount Percentage

Parent Bank

Financial and insurance activities P 397,733 16.9% P 334,720 15.1%

Activities of private household
as employers and undifferentiated
goods and services and producing
activities of households for own use 347,713 14.8% 307,500 13.8%
Real estate activities 308,053 13.1% 310,133 13.9%
Electricity, gas, steam and
air-conditioning supply 281,990 12.0% 265,067 11.9%
Wholesale and retail trade 278,173 11.8% 268,590 12.1%
Manufacturing 205,679 8.7% 195,035 8.8%
Transportation and storage 88,607 3.8% 93,701 4.2%
Arts, entertainment and recreation 76,004 3.3% 76,699 3.5%
Construction 68,108 2.9% 68,752 3.1%
Information and communication 42,634 1.8% 34,276 1.5%
Accommodation and food service
activities 39,688 1.7% 39,484 1.8%
Human health and social service activities 30,392 1.3% 29,693 1.3%
Water supply, sewerage, waste
management and remediation activities 26,870 1.2% 24,014 1.1%
Mining and quarrying 10,122 0.4% 16,150 0.7%
Agriculture, forestry and fishing 14,600 0.6% 14,368 0.6%
Professional, scientific, and technical
activities 9,601 0.4% 10,241 0.5%
Administrative and support services 7,430 0.3% 8,182 0.4%
Education 4,373 0.2% 5,043 0.2%
Public administrative and defense;
compulsory social security 693 0.0% 723 0.0%
Activities of extraterritorial and
organizations and bodies - 0.0% 5 0.0%
Other service activities 113,088 4.8% 122,118 5.5%

P 2,351,551 100% P 2,224,494 100%

(d) Credit Status of Loans

The breakdown of receivable from customers as to status is shown below:

2021
Non- Total Loan
Performing Performing Portfolio

BDO Unibank Group

Gross carrying amount

Corporate P 1,860,981 P 21,443 P 1,882,424
Consumer 468,097 49,672 517,769
Allowance for ECL ( 31,001 ) ( 34,258 ) ( 65,259)

Net carrying amount P 2,298,077 P 36,857 P 2,334,934

Parent Bank

Gross carrying amount

Corporate P 1,855,300 P 21,443 P 1,876,743
Consumer 428,553 46,255 474,808
Allowance for ECL ( 30,535 ) ( 32,739 ) ( 63,274)

Net carrying amount P 2,253,318 P 34,959 P 2,288,277

 -196 -

2020

Non- Total Loan

Performing Performing Portfolio

BDO Unibank Group

Gross carrying amount

Corporate P 1,745,057 P 19,253 P 1,764,310
Consumer 455,528 43,864 499,392
Allowance for ECL ( 27,878 ) ( 28,542 ) ( 56,420)

Net carrying amount P 2,172,707 P 34,575 P 2,207,282

Parent Bank

Gross carrying amount

Corporate P 1,741,115 P 19,253 P 1,760,368
Consumer 423,904 40,223 464,127
Allowance for ECL ( 27,143 ) ( 26,846 ) ( 53,989)

Net carrying amount P 2,137,876 P 32,630 P 2,170,506

Non-performing loans (NPL) included in the total loan portfolio of the BDO Unibank
Group and the Parent Bank as of December 31, 2021 and 2020 are presented below as net
of specific allowance for impairment in compliance with BSP Circular No. 941, Amendments
to Regulations on Past Due and Non-Performing Loans.

BDO Unibank Group Parent Bank

2021 2020 2021 2020

NPL P 69,821 P 61,644 P 66,601 P 58,200

Allowance for impairment ( 33,498) ( 27,822) ( 32,149) ( 26,293 )

P 36,323 P 33,822 P 34,452 P 31,907

Per MORB, loans shall be considered non-performing, even without any missed
contractual payments, when it is considered impaired under existing accounting standards,
classified as doubtful or loss, in litigation, and/or there is evidence that full repayment of
principal and interest is unlikely without foreclosure of collateral, if any. All other loans,
even if not considered impaired, shall be considered non-performing if any principal
and/or interest are unpaid for more than 90 days from contractual due date, or accrued
interests for more than 90 days have been capitalized, refinanced, or delayed by
agreement. Microfinance and other small loans with similar credit characteristics shall be
considered non-performing after contractual due date or after it has become past due.
Restructured loans shall be considered non-performing. However, if prior to restructuring,
the loans were categorized as performing, such classification shall be retained.
 -197 -

As at December 31, 2021 and 2020, the non-performing loans (NPLs) not fully covered by
allowance for credit losses follow:

BDO Unibank Group Parent Bank

2021 2020 2021 2020

Gross NPLs P 69,821 P 61,644 P 66,601 P 58,200

NPLs fully covered by allowance
for impairment ( 9,689) ( 8,162) ( 9,359) ( 7,071)

P 60,132 P 53,482 P 57,242 P 51,129

Restructured loans are generally considered non-performing. However, if prior to

restructuring, the loans were categorized as performing, such classification shall be
retained. Moreover, NPLs shall remain classified as such until (a) there is sufficient evidence
to support that full collection of principal and interests is probable and payments of interest
and/or principal are received for at least six months; or (b) written off.

Restructured loans amount to P143,337 and P68,643 for BDO Unibank Group and
P142,062 and P68,246 for Parent Bank as of December 31, 2021 and 2020, respectively.
The related allowance for credit loss of such loans amounted to P21,137 and P7,159 for
BDO Unibank Group and P20,578 and P7,025 for Parent Bank as of December 31, 2021
and 2020, respectively.

As of December 31, 2021, gross and net NPL ratios of the BDO Unibank Group and the
Parent Bank as reported to BSP were 2.80% and 1.46%, and 2.72% and 1.41%, respectively.
As of December 31, 2020, gross and net NPL ratios of the BDO Unibank Group and the
Parent Bank were 2.65% and 1.45%, and 2.54% and 1.39%, respectively. Most of the NPLs
are secured by real estate or chattel mortgages.

(e) Analysis of Loan Portfolio as to Type of Security

The breakdown of total loans (receivable from customers, net of unearned interests or
discounts) as to secured and unsecured follows:

BDO Unibank Group Parent Bank

2021 2020 2021 2020
Secured:
Real estate mortgage P 327,719 P 327,568 P 320,993 P 322,764
Chattel mortgage 94,875 104,264 92,748 103,629
Other securities 83,797 90,842 81,998 89,721
506,391 522,674 495,739 516,114
Unsecured 1,893,802 1,741,028 1,855,812 1,708,381

P 2,400,193 P 2,263,702 P 2,351,551 P 2,224,495

 -198 -

(f) Information on Related Party Loans

In the ordinary course of business, the Parent Bank has loan transactions with each other,
their other affiliates, and with certain DOSRI. Under existing policies of the Parent Bank,
these loans are made substantially on the same terms as loans to other individuals and
businesses of comparable risks.

Under the current BSP regulations, the amount of individual loans to a DOSRI, 70% of
which must be secured, should not exceed the amount of the encumbered deposit and book
value of the investment in the Parent Bank and/or any of its lending and nonbank financial
subsidiaries. In aggregate, loans to DOSRI generally should not exceed the total equity or
15% of the total loan portfolio of the BDO Unibank Group and the Parent Bank, whichever
is lower. However, non-risk loans are excluded in both individual and aggregate ceiling
computation.

The following table shows the information relating to the loans, other credit
accommodations and guarantees granted to DOSRI as of December 31 in accordance with
BSP reporting guidelines:

The following table shows the other information relating to the loans, other credit
accommodations and guarantees granted to DOSRI as of December 31 as reported to the
BSP:

BDO Unibank Group Parent Bank

2021 2020 2021 2020

Total DOSRI loans P 36,334 P 25,371 P 36,331 P 25,366

Unsecured DOSRI loans 1,919 1,799 1,919 1,799
Past due DOSRI loans 3 3 3 3
Non-performing DOSRI loans 12 11 12 11
% of DOSRI loans to total
loan portfolio 1.51% 1.12% 1.54% 1.14%
% of unsecured DOSRI loans to
total DOSRI loans 5.28% 7.09% 5.28% 7.09%
% of past due DOSRI loans to
total DOSRI loans 0.01% 0.01% 0.01% 0.01%
% of non-performing DOSRI
loans to total DOSRI loans 0.03% 0.05% 0.03% 0.05%

DOSRI loans of the BDO Unibank Group and the Parent Bank bear annual interest rates
of 0.00% to 9.00% in 2021, 2020 and 2019 (except for credit card receivables which bear a
monthly interest rate of 0.00% to 3.64% in 2021, in 2020 and 2019).
 -199 -

The following table shows the other information relating to the loans, other credit
accommodations and guarantees granted to related parties (inclusive of DOSRI) as of
December 31 as reported to the BSP:

BDO Unibank Group Parent Bank

2021 2020 2021 2020

Total Related Party loans P 111,024 P 104,916 P 110,966 P 104,372

Unsecured Related Party 66,036 60,568 66,036 60,568
Past due Related Party 3 54 3 54
Non-performing Related Party 12 62 12 62
% of Related Party loans to
total loan portfolio 4.63% 4.63% 4.72% 4.69%
% of unsecured Related Party
loans to total Related
Party loans 59.48% 57.73% 59.51% 58.03%
% of past due Related Party
loans to total Related
Party loans 0.00% 0.05% 0.00% 0.05%
% of non-performing Related
Party loans to total
Related Party loans 0.01% 0.06% 0.01% 0.06%

In accordance with existing BSP regulations, the reported DOSRI performing loans
exclude loans extended to certain borrowers before these borrowers became DOSRI.

Under BSP regulations, total outstanding exposures to each of the Parent Bank

the unsecured portion of which shall not exceed 5.0% of such net worth. Further, the total
outstanding exposures to subsidiaries and affiliates shall not exceed 20.0% of the net worth
of the Parent Bank.

As of December 31, 2021 and 2020, the BDO Unibank Group and Parent Bank is in
compliance with these regulatory requirements.

(g) Secured Liabilities and Assets Pledged as Security

The aggregate amount of resources pledged as security and secured liabilities in 2021
totaled to P1,320 and P1,088 for the BDO Unibank Group and nil for the Parent Bank,
respectively. On 2020, the BDO Unibank Group and the Parent Bank did not have any
secured liabilities or assets pledged as security.

(h) Contingencies and Commitments arising from Off-Balance Sheet Items

commitments and contingent liabilities such as guarantees, commitments to extend credit,

Unibank Group recognizes in its books any losses and liabilities incurred in the course of
its operations as soon as these become determinable and quantifiable. Management
believes that, as of December 31, 2021 and 2020, no additional material losses or liabilities
are required to be recognized in the financial statements of BDO Unibank Group as a
result of the above commitments and contingencies.
 -200 -

below.

BDO Unibank Group Parent Bank

Notes 2021 2020 2021 2020

Trust department accounts 28 P 1,778,718 P 1,629,129 P 1,230,870 P 1,124,422

Committed credit lines 4.3.2 433,247 424,703 433,247 424,703
Forward exchange sold 190,055 166,992 164,674 147,543
Forward exchange bought 177,434 155,430 153,492 133,914
Unused commercial
letters of credit 4.3.2 75,758 52,029 75,758 52,029
Spot exchange sold 15,646 15,368 15,618 15,099
Spot exchange bought 9,233 3,973 9,205 3,705
Bills for collection 8,673 14,625 8,673 14,625
ROP warrants 8,475 8,475 8,475 8,475
Interest rate swap receivable 6,993 7,956 4,493 4,254
Interest rate swap payable 6,993 7,956 4,493 4,254
Other contingent accounts 4,710 3,278 3,049 3,038
Export letters of credit
confirmed 4,644 6,293 4,644 6,293
Outstanding guarantees issued 4,202 3,469 4,202 3,469
Late deposits/payments
received 461 1,262 450 1,252
 Report of Independent Auditors
to Accompany Supplementary Punongbayan & Araullo
20th Floor, Tower 1

Schedules Required by the The Enterprise Center

6766 Ayala Avenue
Securities and Exchange Commission 1200 Makati City
Philippines
Filed Separately from the
T +63 2 8988 2288
Basic Financial Statements

The Board of Directors and the Stockholders

BDO Unibank, Inc.
BDO Corporate Center a
y

We have audited the financial statements of BDO Unibank, Inc. and subsidiaries
(collectively referred to as the BDO Unibank Group) and BDO Unibank, Inc. for the year
ended December 31, 2021, on which we have rendered our report thereon dated February 24,
2022. Our audit was conducted for the purpose of forming an opinion on the basic financial
statements taken as a whole. The accompanying supplementary schedules (see Table of
Contents) of the BDO Unibank Group as of December 31, 2021 and for the year then ended, are
presented for purposes of additional analysis in compliance with the requirements of the Revised
Securities Regulation Code Rule 68, and are not a required part of the basic financial statements
prepared in accordance with Philippine Financial Reporting Standards. Such supplementary
schedules are the responsibility of management. The supplementary schedules have been
subjected to the auditing procedures applied in the audit of the basic financial statements and, in
our opinion, are fairly stated in all material respects in relation to the basic financial statements
taken as a whole.

PUNONGBAYAN & ARAULLO

By: Romualdo V. Murcia III

Partner

CPA Reg. No. 0095626

TIN 906-174-059
PTR No. 8852339, January 3, 2022, Makati City
SEC Group A Accreditation
Partner - No. 0628-AR-4 (until Sept. 4, 2022)
Firm - No. 0002 (until Dec. 31, 2024)
BIR AN 08-002511-022-2019 (until Sept. 4, 2022)

February 24, 2021

Certified Public Accountants

grantthornton.com.ph
Punongbayan & Araullo (P&A) is the Philippine member firm of Grant Thornton International Ltd.

Offices in Cavite, Cebu, Davao

BOA/ PRC Cert of Reg. No. 0002
SEC Accreditation No. 0002
BDO Unibank, Inc. Group Map
As of December 31, 2021
SY GROUP
Felicidad Sy, Teresita Sy, Elizabeth Sy, Henry Sy Jr., Hans Sy, Herbert Sy, Harley Sy

SM INVESTMENTS CORPORATION

BDO UNIBANK, INC. SM INVESTMENTS, INC.

45.3% 1/ SUBSIDIARIES & AFFILIATES
BDO Private Bank, Inc. 3/
BDO Life Assurance Company, Averon Holdings 100%
Inc3/ Corporation4/
Retail
BDO 97% 100% SM Retail
BDO Capital 3% BDO Network Bank, Inc 3/
77.3%
BDO Securities Corporation 84.87%
3/
BDO Capital & Investment BDO 2.65% SM Stores
BDO Insurance Brokers, Inc. 4/
Corporation 3/ BDO Capital 97.35%
BDO Remit (UK) Ltd3/ 100%
99.8760% SM Supermarket
100% Equimark-NFC Development
BDO Remit International
BDO Leasing and Finance, Inc. 3/ Corp. 4/ 60% SM Hypermarket
Holdings B.V 3/
96.32%
BDO-87.43%, SM Keppel Land, Inc. 4/ Savemore
BDO Capital-1.11% BDO Remit (Spain) S.A. 3/
50%
Armstrong Securities, Inc. 3/ 100% (a) Banking
BDO Remit (USA), Inc. 3/ 80% Northpine Land, Inc. 4/
20% China Banking Corporation
100% 22.5%
CBN Greece S.A. 3/
BDO Finance Corporation 3/ Taal Land, Inc. 4/
99.92% (a)
BDO Remit (Canada) Ltd. 3/ 100% 33.33% Property
100%
SM Prime Holdings Inc.
BDO Rental, Inc. 3/ NLEX Corporation 4/ 49.7%
BDO Remit (Japan) Ltd. 3/ 100% 11.70%
100% Malls
BDO Remit Limited3/
BDORO Europe Ltd. 4/ (100%) Residential
100%
Commercial
BDO Strategic Holdings Inc. 3/ BDO Remit (Macau) Ltd. 3/
100% 100%
Hotels and Conventions

-
- Stockholder of BDO
1/ December 31, 2021 (includes direct & indirect ownership) (a) For dissolution / under liquidation - Subsidiary
2/ Entities related to BDO through common ownership/directorship/officership - Affiliate
3/ Financial entities - Other Related Party
4/ Non-Financial entities
 BDO Unibank, Inc. and Subsidiaries
SEC Supplementary Schedules
December 31, 2021

Table of Contents

Annexes Description Page

Annex 68-A Quality of Audit Work of Applicants for Accreditation and

Accredited Independents Auditors *

Annex 68-B Supplemental Written Statement of Auditor 2

Annex 68-C Schedules for Non-Stock, Non-Profit Organizations *

Annex 68-D Reconciliation of Company Retained Earnings for Dividend Declaration 3

Annex 68-E Schedule of Financial Soundness Indicators 4

Annex 68-F Schedule for Financing Companies *

Annex 68-G Schedule for Mutual Funds *

Annex 68-H Schedule for Investment Houses *

Annex 68-I Schedule for Listed Companies with a Recent Offering of

Securities to the Public 5

Annex 68-J Schedules

A Financial Assets 6

B Amounts Receivable from Directors, Officers, Employees, Related Parties,

and Principal Stockholders (Other than Related Parties) 7

C Amounts Receivable from Related Parties which are eliminated during the
consolidation of financial statements 8

D Long-Term Debt 9

E Schedule E - Indebtedness to Related Parties (Long-Term Loans from

Related Companies) 10

F Guarantees of Securities of Other Issuers 11

G Capital Stock 12

Annex 68-K Additional Disclosures in the notes to Financial Statements *

Note: *Not Applicable

 Punongbayan & Araullo
20th Floor, Tower 1
The Enterprise Center
Supplemental Statement 6766 Ayala Avenue
1200 Makati City
of Independent Auditors Philippines

T +63 2 8988 2288

The Board of Directors

BDO Unibank, Inc.
a
BDO Corporate Center,
7899 Makati Avenue, Makati City

We have audited the financial statements of BDO Unibank, Inc. (the Bank) for the year ended
December 31, 2021, on which we have rendered the attached report dated February 24, 2022.

In compliance with the Revised Securities Regulation Code Rule 68, we are stating that the
Bank has 10,728 stockholders owning 100 or more shares each as
of December 31, 2021.

PUNONGBAYAN & ARAULLO

By: Romualdo V. Murcia III

Partner

CPA Reg. No. 0095626

TIN 906-174-059
PTR No. 8852339, January 3, 2022, Makati City
SEC Group A Accreditation
Partner - No. 0628-AR-4 (until Sept. 4, 2022)
Firm - No. 0002 (until Dec. 31, 2024)
BIR AN 08-002511-022-2019 (until Sept. 4, 2022)
Aug. 27, 2024)

February 24, 2022

Certified Public Accountants

grantthornton.com.ph
Punongbayan & Araullo (P&A) is the Philippine member firm of Grant Thornton International Ltd.

Offices in Cavite, Cebu, Davao

BOA/ PRC Cert of Reg. No. 0002
SEC Accreditation No. 0002
 ANNEX 68-D

RECONCILIATION OF RETAINED EARNINGS AVAILABLE FOR DIVIDEND DECLARATION

As of December 31, 2021
(Amounts in Millions)

BDO Unibank, Inc.

BDO Corporate Center, 7899 Makati Avenue, Makati City

Unappropriated Retained Earnings at Beginning of Year P 214,207

Prior Year's Outstanding Reconciling Items, net of tax

Accumulated Income from Subsidiaries and Associates (net of dividends received) ( 16,218 )
Deferred tax income ( 7,833 )

Unappropriated Retained Earnings, as adjusted to available for dividend

distribution, beginning of the year P 190,156

Add: Net income actually earned/realized during the period

Net income during the period closed to Retained Earnings 42,681

Less: Non-actual/unrealized income net of tax:

Equity in net income of associates/joint venture 6,350
Unrealized foreign exchange gains - net 1,928
Deferred tax income 447
Fair value adjustment (MTM gains) 166
Sub-total 8,891

Net income actually earned during the period 33,790

Add (Less):
Dividend declarations during the period ( 5,602 )
Appropriations of Retained Earnings during the period ( 1,557 )
Sub-total ( 7,159 )

TOTAL RETAINED EARNINGS, END OF THE YEAR AVAILABLE FOR DIVIDEND P 216,787
 Annex 68-E
SCHEDULE OF FINANCIAL SOUNDNESS INDICATORS
BDO UNIBANK, INC. AND SUBSIDIARIES
As of December 31, 2021

Ratio Formula Current Year Prior Year

Current resources
Current ratio 45.6% 52.4%
Current liabilities
Cash & cash equivalents + Marketable
Acid test ratio securities + Current receivables 45.6% 52.3%
Current liabilities
Total liabilities
Solvency ratio 88.3% 88.4%
Total resources
Total liabilities
Debt-to-equity ratio 753.6% 758.7%
Total equity
Total resources
Asset-to-equity ratio 853.6% 858.7%
Total equity
Earnings before interest and taxes (EBIT)
Interest rate coverage ratio 512.0% 297.3%
Interest expense
Net profit
Return on equity 10.4% 7.5%
Average total capital accounts
Net profit
Return on assets 1.2% 0.9%
Average total resources
Net profit
Net profit margin 20.8% 13.3%
Revenues
Other ratios:
Net interest income
Net Interest Margin 4.0% 4.4%
Average interest earning resources
Net Profit
Return on Common Equity 10.5% 7.6%
Average common equity
Total liquid resources
Liquidity ratio 32.2% 30.8%
Total resources
Capital to risk Assets ratio Combined credit, market and operational risk 14.7% 14.4%
Capital Measure
Basel III Leverage ratio 10.3% 10.2%
Exposure Measure
Total Stock of High Quality Liquid Assets
Liquidity Coverage ratio 145.4% 127.1%
Total net cash outflows
Available Stable Funding
Net Stable Funding ratio 123.5% 122.0%
Required Stable Funding
 Annex 68-I

SCHEDULE FOR LISTED COMPANIES WITH A RECENT OFFERING OF SECURITIES TO THE PUBLIC

BDO Unibank, Inc. and Subsidiaries

For the period ended December 31, 2021
(In millions)

Fixed Rate Peso

Bonds

1. Gross and net proceeds as disclosed in the final prospectus Nothing to report

2. Actual gross and net proceeds

Gross -
Net -

3. Each expenditure item where the proceeds were used

Reserves -
Loans -

4. Balance of the proceeds as of the end of reporting period -

 BDO Unibank, Inc. and Subsidiaries
Schedule A - Financial Assets
December 31, 2021
(In Millions)

Valued based on
Number of Shares or Amount shown in Income
Market Quotation at
Type of Securities Principal Amount of the Statement of Received
End of Reporting
Bonds and Notes Financial Position and Accrued
Period

Financial assets at fair value through profit or loss

Derivatives 163,556 P 6,232 P 6,232 P 730
Government bonds 13,597 5,427 5,427 36
Other debt securities 1,298 4,679 4,679 13
Equity securities 6,478 31,596 31,596 8

47,934 47,934 787

Fair value through other comprehensive income

Government debt 101,485 110,182 110,182 1,221
Other debt securities 52,913 55,279 55,279 590
Equity securities 698 5,332 5,332 1

170,793 170,793 1,812

At amortized cost
Government debt securities 318,054 334,901 335,444 3,353
Other debt securities 61,087 62,633 60,903 628

397,534 396,347 3,981

P 616,261 P 615,074 P 6,580

 BDO Unibank, Inc. and Subsidiaries
Schedule B - Amounts Receivable from Directors, Officers, Employees, Related Parties and Principal Stockholders (Other than Related Parties)
December 31, 2021
(In Millions)

Balance at Deductions Ending Balance

Balance at
Name and Designation of Debtor Beginning of Additions Amounts Amounts Not
Current* End of Period
Period Collected Written Off Current**

Amounts Due from Related Parties under Common Ownership:

Sysmart Corporation P 419 P 12 P 431 P - P - P - P -
419 12 431 - - - -

Loans to Officers and Employees:

Salary Loans 1,626 1,395 1,261 - 188 1,572 1,760
Credit Card Loans 140 371 366 - 135 10 145
Auto Loans 99 35 53 - 6 75 81
Home Loans 98 5 25 - 1 77 78
Others*** 6 1 3 - 4 - 4
1,969 1,807 1,708 - 334 1,734 2,068

Loans to Directors:
Nestor V Tan 91 3 94 - - - -
91 3 94 - - - -

Loans to Stockholders:
SM Investments Corporation 4,517 13,242 723 - 9,021 8,015 17,036
Sybase Equity Investments Corporation 788 8,734 1,792 - 3,729 4,001 7,730
Carmen Copper Corporation 13,960 1,690 9,139 - - 6,511 6,511
Romer Mercantile Inc 2,853 568 497 - 92 2,832 2,924
Intercontinental Devt Corp 65 2 2 - - 65 65
Costa Del Hamilo Inc. 418 422 840 - - - -
Highlands Prime Inc 291 196 487 - - - -
22,892 24,854 13,480 - 12,842 21,424 34,266

Total P 25,371 P 26,676 P 15,713 P - P 13,176 P 23,158 P 36,334

*Due within one year

**Due beyond one year
***This consists of insignificant DOSRI Loans
 BDO Unibank, Inc. and Subsidiaries
Schedule C - Amounts Receivable from Related Parties which are eliminated during the consolidation of financial statements
December 31, 2021
(In Millions)

Deductions
Balance at
Not Balance at
Name and Designation of Debtor Beginning of Additions Amounts Amounts Current*
Current** End of Period
Period Collected Written Off

BDORO Europe, Ltd. P 1,776 P 290 P 231 P - P - P 1,835 P 1,835

BDO Capital & Investment Corporation 1,410 5,527 6,187 - 750 - 750
BDO Strategic Holdings, Inc. 1,789 8,527 10,207 - 109 - 109
BDO Remit ( USA), Inc. 122 7,014 7,037 - 99 - 99
BDO Life Assurance Holdings Corp. 28 81 28 - 81 - 81
BDO Insurance Brokers Inc, - 28 - - 28 - 28
BDO Remit (Japan) Ltd. 19 3,160 3,170 - 9 - 9
BDO Remit Canada Ltd. - 384 383 - 1 - 1

P 5,144 P 25,011 P 27,243 P - P 1,077 P 1,835 P 2,912

*Due within one year

**Due beyond one year
 BDO Unibank, Inc. and Subsidiaries
Schedule D - Long-Term Debt
December 31, 2021
(In Millions)

Amount shown under Amount shown under

Caption "Current portion of Caption "Long-Term
Amount Authorized by
Title of Issue and Type of Obligation Long-Term Debt" in Debt" in related Interest Rate Maturity Date
Indenture
related Statement of Statement of Financial
Financial Position Position

Bills Payable
Wells Fargo Bank, National Association, Singapore Branch P 2,555 P 2,555 P - 0.99% January 28, 2022
Metropolitan Bank & Trust Company 502 2 500 3.00% October 31, 2023
Metropolitan Bank & Trust Company 501 1 500 3.13% November 21, 2023
Metropolitan Bank & Trust Company 301 1 300 3.13% November 22, 2023
Citicorp International Limited 7,653 - 7,653 1.00% January 26, 2024
Citicorp International Limited 2,551 - 2,551 1.00% January 26, 2024
The Norinchukin Bank 1,093 - 1,093 1.00% January 26, 2024
Wells Fargo Bank, National Association 1,093 - 1,093 1.00% January 26, 2024
Mizuho Bank, Ltd. 1,093 - 1,093 1.00% January 26, 2024
Sumitomo Mitsui Banking Corporation Singapore Branch 984 - 984 1.00% January 26, 2024
State Bank of India 765 - 765 1.00% January 26, 2024
Citibank N. A. 656 - 656 1.00% January 26, 2024
CTBC Bank Co., Ltd, 656 - 656 1.00% January 26, 2024
The Hong Kong and Shanghai Banking Corp. Ltd. 656 - 656 1.00% January 26, 2024
United Overseas Bank Limited 437 - 437 1.00% January 26, 2024
Taishin International Bank Co., Ltd. 219 - 219 1.00% January 26, 2024
21,715 2,559 19,156

Senior Notes
Senior Notes 1 34,721 325 34,396 2.95% March 6, 2023
Senior Notes 2 7,741 122 7,619 4.16% February 20, 2025
Senior Notes 3 30,591 304 30,287 2.13% January 13, 2026
73,053 751 72,302

Fixed Rate Peso Bonds

Senior Notes 1 36,180 36,180 - 3.13% April 3, 2022
Senior Notes 2 40,256 40,256 - 4.41% August 3, 2022
76,436 76,436 -

P 171,204 P 79,746 P 91,458

 BDO Unibank, Inc. and Subsidiaries
Schedule E - Indebtedness to Related Parties (Long-Term Loans from Related Companies)
December 31, 2021

Balance at Beginning Balance at End

Name of related party
of Period of Period

Nothing to report
 BDO Unibank, Inc. and Subsidiaries
Schedule F - Guarantees of Securities of Other Issuers
December 31, 2021

Name of Issuing Entity of Securities Title of Issue of each Total Amount Amount Owned by
Guaranteed by the Company for which this Class of Securities Guaranteed and Person for which Nature of Guarantee
Statement is Filed Guaranteed Outstanding Statement is Filed

Nothing to report
 BDO Unibank, Inc. and Subsidiaries
Schedule G - Capital Stock
December 31, 2021

Number of Shares Number of Shares Held by

Number of shares
Issued and
Reserved for
Number of Shares Outstanding as shown
Title of Issue Options, Warrants,
Authorized under the Statement of Directors, Officers
Coversion and Related Parties Others
Financial Position and Employees
other Rights
caption

Common shares - P10 par value 5,500,000,000 4,385,519,015 - 2,421,829,413 30,869,521 1,932,820,081

Preferred Shares - P10 par value 1,000,000,000 515,000,000 - 515,000,000 - -

About the Report
102-54
This report is BDO Unibank Inc.’s fourth Sustainability
Report outlining the Bank’s economic, environmental,
social, and governance performance from January
to December 2021. It is a substantiation of BDO’s
commitment to the United Nations Sustainable
Development Goals (SDGs), the principles of the
United Nations Global Compact, and the Greenhouse
Gas (GHG) Protocol. This report has been prepared
in accordance with the GRI Standards: Core option.
It has completed the GRI Materiality Disclosures
Service, which confirms that the GRI Content
Index (see pages 85 to 88) is clearly presented and
references for Disclosures 102-40 to 102-49 align
with appropriate sections in the body of the report.

This report should be read in tandem with the 2021

BDO Annual Report.
BDO 2021 SUSTAINABILITY REPORT

Table of Contents

04 BDO’s Footprint

06 Message from the Chairperson

07 Message from the President and CEO

08 BDO’s Path in Creating Shared Value

10 Sustainability Overview

11 BDO Sustainability Framework

12 Supporting the United Nations Sustainable Development Goals

14 Sustainability Governance

16 Materiality Topics

18 Stakeholder Engagement

19 Sustainability Strategies and Material Areas

20 Product Sustainability Strategy

32 Sustainability Contribution Strategy

55 Human Capital Sustainability Strategy

65 Disaster Response Sustainability Strategy

70 Governance-based Sustainability Strategy

85 GRI Content Index

89 Memberships in Associations

90 Sustainability and ESG Awards and Recognition

91 Contact Information
 P3.6 trillion
BDO’s (US$71.1 billion)
Total Resources

Footprint P42.8 billion

(US$839 million)
Net Income

1,544
BDO is a full-service universal bank in the Philippines.
It provides a complete array of industry-leading
products and services including Lending (corporate Total Branches and Banking
and consumer), Deposit-taking, Foreign Exchange, Offices, including foreign branches
Brokering, Trust and Investments, Credit Cards, in Hong Kong and Singapore
Retail Cash Cards, Corporate Cash Management and
Remittances in the Philippines. Through its local
subsidiaries, the Bank offers Investment Banking,
4,484
Automated Teller Machines (ATMs)
Private Banking, Leasing and Finance, Rural Banking,
Life Insurance, Insurance Brokerage and Online and
Traditional Stock Brokerage Services. 624
Cash Deposit Machines
BDO’s institutional strengths and value-added
products and services hold the key to its successful
business relationships with customers. On the front P529.3 billion
line, its branches remain at the forefront of setting (US$10.4 billion)
high standards as a sales and service-oriented, Market Capitalization
customer-focused force. The Bank has the largest
distribution network with over 1,500 operating
branches and more than 4,400 ATMs nationwide.
BDO has 16 international offices (including full-service
branches in Hong Kong and Singapore) spread across
Asia, Europe, North America, and the Middle East.

The Bank also offers digital banking solutions to make

banking easier, faster, and more secure for its clients.

Through selective acquisitions and organic growth,

BDO has positioned itself for increased balance sheet
strength and continuing expansion into new markets.
As of December 31, 2021, BDO is the country’s largest
bank in terms of total resources, customer loans,
deposits, assets under management and capital,
as well as branch and ATM network nationwide.

BDO is a member of the SM Group, one of the

country’s largest and most successful conglomerates
with businesses spanning retail, mall operations,
property development (residential, commercial,
hotels and resorts), and financial services. Although
part of a conglomerate, BDO’s day-to-day operations
are handled by a team of professional managers
and bank officers. Further, the Bank has one of the
industry’s strongest Board of Directors, composed
of professionals with extensive experience in various
fields that include banking and finance, accounting,
law, and business.

04
P182.2 billion
(US$3.6 billion) Corporate Mission
Direct Economic Value Generated
To be the preferred bank in every market
P2.4 trillion we serve.
(US$47.1 billion)
Gross Customer Loans Corporate Vision
P2.8 trillion To be the leading Philippine bank and financial
services company that empowers customers to
(US$55.3 billion)
achieve their goals and aspirations, combining
Deposit Liabilities
our entrepreneurial spirit, international
perspective, and intense customer focus to
P424.5 billion deliver a personalized banking experience that
(US$8.3 billion) is easy, straightforward, and convenient, while
Capital Base taking pride in building long-term relationships
and finding better ways to deliver offerings of
P548 billion the highest standard.
(US$10.75 billion)
Total Sustainable Finance funded Core Values
Commitment to Customers. We are committed
to delivering products and services that surpass
customer expectations in value and every
aspect of customer service, while remaining
prudent and trustworthy stewards of their
wealth.

Commitment to a Dynamic and Efficient

Organization. We are committed to creating an
organization that is flexible, responds to change,
and encourages innovation and creativity; we
are committed to the process of continuous
improvement in everything we do.

Commitment to Employees. We are committed

to our employees’ growth and development and
we will nurture them in an environment where
excellence, integrity, teamwork, professionalism,
and performance are valued above all else.

Commitment to Shareholders. We are

committed to providing our shareholders with
superior returns over the long-term.

05
 Message from the
Chairperson
“We are excited to lead
these efforts at achieving
sustainability, and through this
report, we invite everyone to go
on this journey with us.”

Dear Stakeholders,
The global impact of the COVID-19 pandemic drove businesses to recalibrate their strategies
in order to stay relevant and continue operating in the new normal. In any crisis, innovation
always creates opportunities for major change and new paths to go forward.
Throughout 2021, we strived to serve our clients’ needs as we gradually reopened our
branches with easing mobility restrictions. We launched new digital products and
capabilities to provide our clients improved access and convenience. We made funds
available to support businesses, from micro, small, and medium enterprises to large
corporates, in their recovery and expansion plans.
Alongside these services, we continued our commitment to help the communities we
serve and aid them to build better and be more prepared for any future adversity. With the
continuous rehabilitation of rural health centers nationwide, our beneficiary communities
have the facilities they need for pandemic response, health and wellness needs, and
potential disaster relief. We have also donated both testing kits and vaccines to protect
communities and help manage the pandemic.
Now more than ever, our response to the pandemic reflects our commitment to a more
sustainable and resilient future. We continue to be a strong advocate of sustainable finance,
having supported this for over a decade now. We are one with our stakeholders in driving
accountability for our social and environmental impact and taking it into account when we
invest in or fund a project.
We remain committed to superior business performance anchored on the principles of
integrity, accountability, transparency. We are excited to lead these efforts at achieving
sustainability, and through this report, we invite everyone to go on this journey with us.

Yours truly,

Teresita T. Sy
Chairperson

06
 Message from the
President and CEO
“BDO’s commitment to

every decision and action we take,

from the Board members to the
senior executive leaders to every
BDO employee, every single day.”

Dear Stakeholders,
Our growing experience in facing the coronavirus pandemic and various disasters has only strengthened
our resolve to fulfill our sustainability objectives.
The year 2021 saw great strides in our effort to translate these objectives — Product Sustainability,
Sustainability Contribution, Human Capital Sustainability, Disaster Response Sustainability, and
Governance-based Sustainability — into real initiatives that promote responsible environmental and
social impact among our stakeholders.
We invested P548 billion in sustainable finance for projects on renewable energy, energy efficiency, green
buildings, among others. We also invested in social projects that promote employment generation and
food security among communities. We almost doubled our ESG-themed Unit Investment Trust Fund,
the first in the country, to P179 million in 2021 from P95.5 million in 2020, promoting growth for local
companies with good Environmental, Social, and Governance practices.
At the height of the pandemic and during disaster situations, we found ways to provide aid and crucial
financial services to our kababayans. BDO’s Cash Agad served as a lifeline for our clients in rural and
remote areas, supporting our Cash Agad partners in providing cash even when other essential services
were down and inaccessible.
We are humbled to be honored among Asia’s Top Sustainability Advocates at the 2021 Asia Corporate
Excellence & Sustainability (ACES) Awards for driving the values of sustainability and incorporating them
in everything we do. We are also proud to be recognized in The Asset’s 2021 ESG Corporate Awards as a
Platinum Awardee for 12 consecutive years. In addition, BDO was among the Philippines’ Top 20 publicly
listed companies with an outstanding corporate governance record based on the ASEAN Corporate
Governance Scorecard.
We recognize that sustainability is about the journey as much as it is about the destination. We remain
dedicated to doing our part for the welfare of our stakeholders, our nation, and our planet. Indeed, BDO’s
commitment to sustainability is reflected in every decision and action we take, from the Board members
to the senior executive leaders to every BDO employee, every single day. My deepest gratitude to every
member of our organization for giving life to sustainability at BDO.

Sincerely,

Nestor V. Tan
President and CEO

07
 BDO’s Path in Creating
Shared Value
Creates jobs Fosters banking habits

38,873
Employees
352,367
Insurance policy holders
1.2 million
Total new checking and
savings accounts in 2021

75%
Employees are women
18.8 million
Customers 4,484
Automated Teller

59% 1,544 Machines (ATMs)

Women in senior management Branches and banking offices

624
37
Women in top management
Cash Deposit Machines

(Senior Vice President and up)

Facilitates infrastructure development

P39.5 billion
Loans disbursed for
P18.4 billion
Loans disbursed in the past
national projects 5 years for road networks

P12.4 billion
Loans disbursed in the past
5 years for airports

08
Helps businesses grow Promotes community development

P43.5 billion
Outstanding SME Loans
121
Rural health units (RHUs)
21
RHUs rehabilitated
rehabilitated to date in 2021
Accelerates economic growth
716,543
P21.9 billion
Taxes paid in 2021
Total beneficiaries of RHUs
rehabilitated in 2021

Supports consumer
expenditure
5% 5-year CAGR* in Auto Financing
12% 5-year CAGR* in Home Financing
7% 5-year CAGR* in Credit Cards
*Compound Annual Growth Rates
10
RHUs repaired in 2021

564,097
Total beneficiaries of
RHUs repaired in 2021

6.5 million
Total RHU project
beneficiaries to date

Champions Finances environment-friendly solutions

financial inclusion

26 2,230 MW
Total installed renewable energy
905,887
Equivalent passenger vehicles
Financial education videos capacity in megawatts taken off roads yearly
developed since 2018

2,676,297 4,266,687 tonnes

Carbon dioxide avoided per year
54
Renewable Energy Projects
Total beneficiaries funded to date
reached through financial
education programs 70,550,565
Equivalent tree seedlings P548 billion
grown over 10 years Total Sustainable Finance
projects funded to date

09
 Sustainability
Overview
BDO Sustainability
Philosophy
We seek to achieve strategic resilience
by incorporating sustainability in the
way we do business. We aim to embed
sustainability principles when making
decisions, assessing relationships,
and creating products.

Alignment with the

United Nations Global
Compact Principles
BDO supports the principles of the United Nations
Global compact. The Bank upholds:

Corporate Governance
Climate-friendly solutions and opportunities
for business
Access to clean, renewable, and reliable energy
sources and services
The adoption of instruments that help quantify,
manage, and report the carbon footprint of
our businesses
The responsibility to protect the dignity of every
person and uphold human rights
The recognition of the role of women in
achieving economic growth and poverty reduction
The elimination of all forms of forced,
compulsory, and child labor

10
BDO Sustainability
Framework

The Bank’s Sustainability Framework defines the strategies that serve

as guideposts in its journey towards sustainability.

Product Sustainability Strategy

We create products and services which
anticipate the evolving needs of our
customers and support sustainable
development goals. Sustainability Contribution Strategy
We support the achievement of national
We develop our capabilities to understand economic goals through financial inclusion
our customers and reach the underserved and impact financing in infrastructure,
markets with relevant products and eco-friendly solutions, green facilities, and
services that meet their unique needs and disaster resilience initiatives.
ways of doing business.

Human Capital Governance-Based

Sustainability Strategy Sustainability Strategy
We develop leaders in the We continuously enhance
sustainability movement. our corporate governance
We aim to grow a “can lead” Disaster Response framework to sustain
workforce that adopts a Sustainability Strategy superior business
sustainability mindset and We leverage our resources performance anchored
thrives with innovative towards the relief, on the principles of
thinking and customer- rehabilitation, and recovery of accountability, transparency,
focused attitude. disaster-stricken communities. integrity, and fairness,
together with our partners.

11
 Supporting the
United Nations Sustainable
Development Goals
Achievements and Targets:

P21.9 billion P17.2 billion 121 Rural

in government taxes in 2021 in loans to agribusiness projects health units
Target 1.a: Ensure significant Target 2.3: By 2030, double the
rehabilitated to benefit
mobilization of resources from a variety agricultural productivity and incomes
of sources, including through enhanced of small-scale food producers, in 6.5 million individuals
development cooperation, in order to particular women, indigenous peoples, Target 3.8 Achieve universal health
provide adequate and predictable means family farmers, pastoralists and fishers, coverage, including financial risk
for developing countries, in particular including through secure and equal protection, access to quality essential
least developed countries, to implement access to land, other productive health-care services and access to safe,
programmes and policies to end poverty resources and inputs, knowledge, effective, quality and affordable essential
in all its dimensions. financial services, markets and medicines and vaccines for all.
opportunities for value addition and non-
farm employment

Financial education program for

target beneficiaries composed of
59% 58.6 million
29 million learners and 900,000
female representation in liters of water recycled by BDO
teachers and non-teaching Corporate Center Ortigas in 2021
personnel in 47,000 public Target 5.5: Ensure women’s full and Target 6.4: By 2030, substantially increase
schools nationwide effective participation and equal water-use efficiency across all sectors and
opportunities for leadership at all levels of ensure sustainable withdrawals and supply
Target 4.7: By 2030, ensure that all decision-making in political, economic, and of fresh water to address water scarcity and
learners acquire the knowledge and public life. substantially reduce the number of people
skills needed to promote sustainable suffering from water scarcity
development, including, among others,
through education for sustainable
development and sustainable lifestyles,
human rights, gender equality, promotion
of a culture of peace and non-violence,
global citizenship and appreciation
of cultural diversity and of culture’s
contribution to sustainable development

12
P85.4 billion 38,873 P548 billion
in funding for Renewable Energy employees in the Philippines in Sustainable Finance projects
projects with total installed capacity and abroad funded to date
of 2,230 MW Target 8.5: By 2030, achieve full and Target 9.4: By 2030, upgrade infrastructure
Target 7.2: By 2030, increase productive employment and decent and retrofit industries to make them
substantially the share of renewable work for all women and men, including sustainable, with increased resource-use
energy in the global energy mix. for young people and persons with efficiency and greater adoption of clean
disabilities, and equal pay for work of and environmentally sound technologies
equal value and industrial processes, with all countries
taking action in accordance with their
respective capabilities.

25% increase P165 billion Publication 4,266,687

in teacher’s salary loan in financing for Green of the 2021 BDO tonnes of carbon dioxide
releases in Mindanao for Building, Energy Efficiency, Sustainability Report avoided by funded
various loan purposes Clean Transport, and Target 12.6: Encourage Renewable Energy
including pursuit of Pollution Control projects companies, especially large projects, in support of
higher education. Target 11.a: Support positive and transnational companies, Republic Act 9513 or the
Target 10.2: By 2030, economic, social and to adopt sustainable Renewable Energy (RE) Act
empower and promote environmental links between practices and to integrate of 2008
the social, economic, and urban, per-urban and rural sustainability information
Target 13.2: Integrate climate
political inclusion of all, areas by strengthening into their reporting cycle
change measures into
irrespective of age, sex, national and regional national policies, strategies
disability, race, ethnicity, development planning and planning

other status

P1.1 billion 3,052 Platinum Award for the

12th consecutive year
New partnerships with
the Agricultural Credit
in financing for Aquatic smallholder farmers
from The Asset’s 2021 Policy Council, Bureau of
Biodiversity projects trained on vegetable
farming ESG Corporate Awards. Fire Protection, Bureau
Target 14.2: By 2030,
BDO is among the of Fisheries and Aquatic
sustainably manage and Target 15.3: By 2030, combat
protect marine and coastal
companies recognized Resources, and Philippine
desertification, restore
ecosystems to avoid degraded land and soil,
by The Asset for National Police to
significant adverse impacts, including land affected by their achievements institutionalize financial
including by strengthening desertification, drought and in sustainability education in capacity building
their resilience, and take floods, and strive to achieve and commitment to initiatives for farmers,
action for their restoration in a land degradation-neutral excellent and continuous firefighters, fisherfolk, and
order to achieve healthy and world improvement in ESG. police personnel nationwide
productive oceans
Target 16.6: Develop effective, Target 17.16: Enhance the global
accountable, and transparent partnership for sustainable
institutions at all levels. development, complemented by
multi-stakeholder partnerships
that mobilize and share
knowledge, expertise, technology
and financial resources, to
support the achievement of the
Sustainable Development Goals
in all countries, in particular
developing countries

13
 Sustainability Governance
“Since the release of our first Sustainability Report in 2018, we have kept true to the
17 Sustainable Development Goals outlined by the United Nations. We are constantly striving to
infuse sustainability, inclusion, and equity into our corporate culture, products, and services.”

Nestor V. Tan
President and Chief Executive Officer

BDO’s commitment to sustainability is fostered at the Board level, role modeled by senior executive
leaders, executed by the business units and subsidiaries, and brought to life by BDO employees.
BDO’s sustainable development strategies are anchored on the United Nations Sustainable
Development Goals.

BOARD OF DIRECTORS

Executive Committee Corporate Governance Risk Management Board Audit Committee

Committee Committee

PRESIDENT & CEO

SUSTAINABILITY TRANSITION STEERING COMMITTEE

Investor
Institutional Risk Central Human
Relations & Compliance BDO
Banking Management Operations Resources
Corporate Group Foundation
Group Group Group Group
Planning Group

Sustainability Office (Convenor)

SUSTAINABILITY TECHNICAL WORKING GROUPS

Process Human Board Products Facilities Strategic

Counterparty
Change Capital Governance Innovation Management Focus

14
Roles and Responsibilities
Oversight for sustainability initiatives reside in four BDO Board Committees, aligned to their
key responsibilities. The Executive Committee approves all sustainability programs across the
BDO Group and their corresponding budgets for implementation. The Corporate Governance
Committee oversees sustainability initiatives related to the following: culture change towards a
sustainability mindset for the organization; stakeholder communication; progress reporting on
programs, metrics, and targets; and sustainability reporting. The Risk Management Committee
oversees environmental, social, and governance risks in the Bank’s risk management system.
The Board Audit Committee oversees internal audit reporting on sustainability programs and
sustainability reporting, as well as compliance testing against regulatory mandates on sustainability.
Across these four Board Committees, all Board Directors are effectively engaged in various
capacities and according to their expertise, in driving the Bank’s sustainability framework across
corporate governance, risk management, strategy, and operations.

The President and CEO provides high level strategic direction on sustainability — from the
articulation of the BDO Sustainability Strategies to key focus areas where the Bank has the most
ESG impact. The CEO also approves the Bank’s strategic external partnerships and commitments
on sustainability on global, regional, and local levels. He is supported by the Sustainability
Transition Steering Committee which oversees the Bank’s policy formulations, programs review,
and recommendations from the Sustainability Technical Working Groups, as the Bank transitions
into a sustainable finance framework. The Steering Committee is composed of heads of business
groups, support groups, and the BDO Foundation, whose work cover corporate governance, risk
management, business strategy, operations, and corporate social responsibility. The Steering
Committee meets on a quarterly basis, and as needed. Acting as Convenor for the Steering
Committee is the Sustainability Office, which oversees and implements the Bank’s Sustainable
Finance Framework transition plan through the Technical Working Groups. The Sustainability Office
also reports to the Corporate Governance Committee, drives the day-to-day implementation of
sustainability initiatives, manages ESG due diligence, produces the annual Sustainability Report,
and represents BDO in external forums. The Technical Working Groups are assigned a key Focus
Area where BDO has the greatest ESG impact and tasked to review and enhance related policies to
embed environmental and social impact principles and criteria, articulate practice into policy, and
recommend and implement sustainability programs for the Bank. The Technical Working Groups
are composed of representatives from business groups, support groups, and subsidiaries who are
chosen for their expertise and experience in their respective fields.

Reporting Process 102-46

1 2 3 4

STEPS Capacity Building Materiality Assessment Data Gathering Management Review

TAKEN GRI Standards Review of operations and Collection of Validation and
training and management approaches, stories and data acceptance of material
workshops identification of key based on identified topics and reported
impact across the value material topics information
chain and performance
indicators
GRI Stakeholder Materiality, Sustainability Stakeholder Stakeholder
REPORTING Inclusiveness Context, Stakeholder Inclusiveness and Inclusiveness and
PRINCIPLES and Sustainability Inclusiveness, and Completeness Completeness
APPLIED Context Completeness

15
 Materiality Topics 102-44, 102-46, 102-47

Data Security Employee Health & Safety Customer Privacy Customer Welfare
How BDO safeguards How BDO creates and How BDO manages risks How BDO manages customer
the privacy and security maintains a safe and healthy related to the use of relations to cover customer
of financial data against workplace environment free personally identifiable satisfaction, customer
emerging cybersecurity of injuries, fatalities, and information and other experience, and welfare
threats and technologies illness customer or user data protection

Topic Boundary Topic Boundary Topic Boundary Topic Boundary

Systemic Risk Management Business Ethics Labor Practice Diversity & Inclusion
How BDO upholds commonly How BDO ensures that
accepted labor standards in its culture and hiring and
the workplace, in compliance promotion practices build
fairness with labor laws and a diverse and inclusive
internationally accepted norms workplace that reflects its
Topic Boundary and standards talent pool and customer base
Topic Boundary
Topic Boundary Topic Boundary

employees

Access & Affordability Physical Impact of Financing Sustainable Selling Practices and
How BDO promotes and Climate Change Development Product Labeling
practices the financial How BDO manages its
inclusion of the unbanked, practices in consumer finance
underbanked, or underserved, selling, mortgage finance
complemented with financial lending, and insurance
literacy to ensure that products sales and marketing
customers make informed
financial decisions Topic Boundary
Topic Boundary
Topic Boundary Topic Boundary

Management of Legal and Direct Economic Executive Responsibility Human Rights and
Regulatory Environment Value Generated in ESG Community Relations

Topic Boundary
development
Topic Boundary
Topic Boundary Within BDO and with Topic Boundary
Within BDO and with key stakeholders Within BDO and with
key stakeholders community partners and
beneficiaries

Product Design and Supply Chain Management Waste Management Water and Wastewater
Lifecycle Management

Topic Boundary
Topic Boundary Topic Boundary
Topic Boundary Within BDO and
Within BDO and with with suppliers
regulators and customers

Energy Management GHG Emissions

Topic Boundary

Topic Boundary

Note: Total of 22 Materiality Topics for BDO

16
 ESG Materiality Matrix 102-43, 102-44, 102-46
For the 2021 Sustainability Report, BDO engaged the services of S&P Global to conduct an updated
review of material Environmental, Social, and Governance (ESG) topics relevant to the Bank, in
support of its sustainability-related disclosures. This is the second ESG Materiality Assessment
for BDO since the Bank issued its first Sustainability Report in 2018, and it aims to capture current
ESG challenges that impact the Bank and its stakeholders. The 2021 ESG Materiality Assessment
identified ESG topics using the Global Reporting Initiative (GRI) standards, the Sustainability
Accounting Standards Boards (SASB) framework, and the Task Force for Climate-related Financial
Disclosures recommendations, as well as topics reported on by BDO’s peers. S&P Global designed
a bespoke stakeholder survey for BDO’s internal and external stakeholder groups to rate the
importance of identified material topics to the Bank’s ESG impact on stakeholders, and identify
ESG factors that affect the Bank. This enhanced stakeholder group engagement for materiality
assessment aims to better prepare BDO to anticipate and mitigate emerging risks to the Bank and
to its stakeholders. The resulting matrix shows the intersection of ESG topics most important to
both, as ranked by stakeholders in the Philippines and overseas. Our performance on these material
issues are discussed in this report.

Environmental
HIGH

Social
Governance

Employee Health & Safety Data Security

Customer Privacy

Customer Welfare

Business Ethics Systemic Risk

Diversity & Inclusion Management
Labor Practice
Impact to Stakeholders

Physical Impact of Climate Change

Access & Affordability
Financing Sustainable Development
Selling Practice & Product Labeling
Management of Legal and Regulatory Environment
Direct Economic Value Generated
Executive Responsibility in ESG
Human Rights

Product Design & Lifecycle Management

Supply Chain Management

Water & Wastewater
Waste Management
Energy Management

GHG Emissions

Impact to BDO HIGH

17
 Stakeholder Engagement
102-40, 102-42, 102-43, 102-44

Stakeholder Channels of
Group Relevance Engagement Relevant Topics Our Commitment
Providers of Annual Access and Continue to promote the financial
Investor resources Stockholders’ Affordability inclusion and financial literacy of
essential to BDO’s Meeting Systemic Risk the unbanked, underbanked, or
goal to deliver Investor meetings Management underserved
results, enhanced Enhance embedded environmental
economic returns, and social criteria in credit risk and
and shared value operational risk systems
Employee Proponent of Face-to-face Employee Health & Prioritize occupational health and
BDO’s vision, meetings Safety safety at all times
mission, and Annual Customer Welfare Provide timely feedback to customer
objectives performance concerns
appraisals
Patrons of BDO’s Customer Customer Privacy Provide guardrails to manage risks
products and touchpoints Data Security related to customer or user data
services Regular visits and Safeguard the privacy and security
Greenhouse Gas
briefings Emissions of financial data against emerging
cybersecurity threats and technologies
Disclose our Scope 1, 2 and 3 emissions
Creditor Source of assets Regular Business Ethics Meet our contractual obligations
that support correspondence Financing Sustainable Continue to support sustainable
BDO’s business and updates Development financing and sustainable development
Suppliers and Vendor Business Ethics Continue to operate on principles of
service providers accreditation Supply Chain accountability, transparency, integrity,
vital to BDO process Management and fairness
Regular Manage ESG risks within our supply
correspondence chain, in partnership with suppliers
Driver of Formal and Data Security Safeguard the privacy and security
regulations and informal Access and of financial data against emerging
policies that aid correspondence Affordability cybersecurity threats and technologies
BDO in achieving Regular audit Continue to promote the financial
Business Ethics
its goals inclusion and financial literacy of
the unbanked, underbanked, or
underserved
Continue to operate on principles of
accountability, transparency, integrity,
and fairness
Partners in Community Customer Privacy Provide guardrails to manage risks
Beneficiary community engagement Human Rights and related to customer or user data
development and dialogues Community Relations Protect human rights in our operations,
local economic Meetings including our socio-economic
growth for program community impact and engagement
implementation
Partners in Analysts’ briefings Financing Sustainable Continue to support sustainable
accurate reporting, Media events Development financing and sustainable development
upholding Physical Impacts of Incorporate climate change into lending
transparency and Climate Change analysis and risk mitigation in our
integrity businesses to protect shareholder value

18
Sustainability
Strategies and
Material Areas

19
 Product Sustainability
Strategy

BDO creates products and services that anticipate the

ever-changing needs of customers; make financial inclusion
possible for the unbanked and underserved; support the
growth and expansion of businesses; contribute to the
country’s long-term economic development; and, ultimately,
support the UN Sustainable Development Goals.

20
Helping customers achieve their goals

BDO has a long history of pioneering innovative banking solutions that changed the way
Philippine banks serve customers. The Bank introduced extended banking days and
hours to meet the needs of business owners and entrepreneurs. It lowered minimum
initial deposits to encourage more people to engage in banking transactions. It offered
affordable and flexible consumer loan packages to support consumer spending. BDO
also leveraged the retail experience and reach of SM companies to establish bank
branches in malls for greater customer convenience. It was the first to promote digital
and mobile banking to save paper while making bank transactions faster and more
convenient. BDO was the first local bank in the country to roll out a debit card with an
embedded Europay Mastercard Visa (EMV) chip to protect against electronic banking
fraud, as well as first to fully retrofit its Automated Teller Machines (ATM) network to
allow EMV chip debit card transactions.

In 2021, BDO continued to introduce new products and enhance its services, to address
the evolving needs of customers during the pandemic and to pursue opportunities to
be more sustainable in its practice. Financial inclusion initiatives made banking at its
easiest, with zero initial deposit and zero minimum maintaining balance. The Bank also
intensified efforts to offer financial services with non-financial support through financial
education programs across various sectors of society, particularly in supporting women
entrepreneurs post-COVID-19. BDO found ways to operate on business-as-usual mode
in the most unusual circumstances to bring its products and services to where they
were needed most.

Finding ways to serve through

digital banking
With lockdowns in place that restricted movement and industrial activity, the earth’s
carbon footprint reached record lows. What reached record highs was the volume of
online transactions, as people shifted to digital technology for their regular everyday
needs. This was particularly true for the finance sector as consumers embraced
e-wallets and similar virtual options.

In 2021, this led to a 31% rise in digital banking from the previous year for BDO. The
impact was universal, cutting across personal online banking channels as well as new
payment solutions for merchants.

BDO’s digital platforms allowed customers to continue going about their business and
personal financial responsibilities despite the pandemic. They gave a semblance of the
old normal, but offered the assurances demanded by the current pandemic situation:

Convenience. Customers can transact 24/7 anytime, anywhere — even in the

comfort of their most private spaces.
Safety. Digital platforms eliminate the need to go out and use potentially
contaminated machines, reducing the risk of catching the virus.
Security. The new BDO digital channels make use of technology such as biometrics
and multi-factor authentication for secure transactions.
Reduced carbon footprint as a result of decreased travel for bank or business
transactions.

21
 BDO Pay and BDO Pay Account
BDO Pay, launched in March 2021, is a payment app that provides BDO
depositors a seamless experience for everyday financial transactions. P1.5
Linked to customers’ BDO savings account and credit cards, the app
eliminates the additional cash-in step and gives users an easier way to trillion
send money to loved ones, pay their utilities and other bills, and pay BDO Pay Transactions
for purchases at over 12,000 acceptance points nationwide by simply (33% Growth)
scanning a Quick Response (QR) code.

Despite fierce competition, BDO Pay made big inroads in the digital BDO Pay
banking category, leveraging on BDO’s large client base and attracting
non-BDO depositors as well. The BDO Pay Account was subsequently Account
launched, allowing non-BDO customers to open an account anywhere Zero Initial Deposit
and anytime through the app. Requiring only one ID and with zero initial Zero Minimum
deposit and zero minimum maintaining balance requirements, BDO Pay Maintaining Balance
Account is the easiest way to start banking with BDO.

BDO Pay Account is in line with the digital transformation roadmap of the
Bangko Sentral ng Pilipinas (BSP) to provide bank accounts to at least
70% of Filipinos by 2023. It was, in fact, developed to primarily serve the
unbanked sector, including consumers in rural and remote areas.

By the end of 2021, BDO recorded a 33% growth in transactions through

BDO Pay and BDO Website, with a total value of over P1.5 trillion. This
growth was largely fueled by send money transfers, both to BDO
accounts and other banks, as well as bills payment transactions.

BDO Checkout
BDO’s digital innovations extended to its merchants whose needs were
addressed by the launch of BDO Checkout, an online payment solution
that allows businesses of all sizes to accept credit card, debit card, and
mobile wallet payments even without a website or outside of the large
e-commerce platforms. This was particularly helpful for individual sellers
and other micro, small and medium enterprises that make up
90% of the onboarded merchant partners in 2021. By year-end, total
transaction value through BDO Checkout was over P100 million.

Through its ongoing digital banking initiatives, BDO finds ways to make the
business work for its clients.

Another BDO First:

Biometrics-enabled ATMs
BDO was once again the first bank to fully retrofit its ATMs to enable the
processing of unique individual biometrics data, using fingerprint and face
1,205
Biometrics-enabled
recognition technology in authenticating transactions for balance inquiry ATMs Nationwide
and cash withdrawals. In addition to biometrics, BDO ATMs also allow
customers to provide specific data (account name, account number,
mobile phone, number, and/or email address) in each transaction to
maintain multi-factor authentication in compliance with the Bangko
Sentral ng Pilipinas Circular No. 958, Series of 2017 on Technology Risk
Management. The ATMs also allow the use of QR codes to validate
transactions.

22
The ATM innovation serves to enhance both customer experience
and security, as well as reduce plastic waste. Customers no longer
need to have or bring plastic ATM cards and memorize their Personal
Identification Numbers (PINs). The biometric ATMs also protect customers
from unauthorized withdrawals due to card skimming or cloning.
Popularizing the use of biometric features in ATMs likewise aims to bring
down the amount of plastic generated for ATM card production.

As of end 2021, BDO has deployed a total of 1,205 biometrics-enabled

ATMs, with majority of the retrofitted machines located in the National
Capital Region and the rest deployed in large provinces nationwide. BDO
aims to retrofit an additional 795 ATM for biometrics capabilities in 2022.

Customer response to the biometrics-enabled ATMs has been very

positive and in favor of security measures and convenience. The ATMs
also reinforced BDO’s reputation as the innovative bank that lives up to
the “We find ways” philosophy in service of its customers’ needs.

Agency banking with Cash Agad

Cash Agad is a banking solution which allows debit and prepaid
cardholders to perform banking transactions through point-of-sale (POS)
machines deployed to Cash Agad partner agents, such as sari-sari stores,
groceries, hardware shops, pawnshops, cooperatives, and other local Cash Agad promotes sales for partner
establishments. Due to the limited mobility brought about by COVID-19 MSMEs in the community
lockdowns during virus surges and the lack of public transportation, Cash
Agad agents in the provinces and remote areas became the main option
for people to withdraw cash from their bank accounts.
In 2021, Cash Agad continued to grow, with increased transactions at
60.6 million from the previous year’s 41.4 million. Total cash withdrawals
also went up to P262 billion, from 2020’s P176.5 billion. Cash Agad's
agent network in 2021 was at 9,530, compared to 8,872 previously, and 60.6
covered 88% of the total municipalities in the country, compared to last
year's 86%. million
Cash Withdrawal
Just as the year was coming to a close, a week before Christmas, Super
Transactions
Typhoon Odette (international name: Rai) hit the Visayas and Mindanao
regions in Southern Philippines, affecting 1.8 million people and displacing
600,000 from their homes and places of business. BDO’s Cash Agad
9,530
partner agents once again pulled through for their communities. Partner Agents
With many bank branches and ATMs damaged by the super typhoon, top
partner stores provided critical withdrawal services to cash-strapped
families across calamity-stricken regions for food, water, medicine,
88%
Philippine
transportation out of danger zones, and immediate home repairs. Municipalities Covered
Cash Agad allowed families to survive the first week of the devastation,
while awaiting relief and recovery assistance, particularly in the rural
areas on the outskirts.

23
 Improving financial wellness

BDO Trust continues to support the bank’s advocacy for financial

inclusion and responsible investing through its continuing financial
literacy campaign, BDO Easy Investment Plan, PERA, and the BDO ESG
Equity Fund.

BDO Trust prides itself in having a dedicated team that provides financial
education programs to clients for over a decade before the inception of
the Sustainable Development Goals. BDO Trust teaches proper budgeting,
wise investing habits, and retirement planning to different audiences:
clients, employees, teachers, and blue-collared workers, to name a few.
The group’s advocacy for financial wellness led to the development of
the BDO Easy Investment Plan (EIP) which allows clients to invest in
Unit Investment Trust Funds (UITFs) for minimum investment amounts
of P1,000 (US$20) for peso-denominated funds and US$200 for United
States dollar-denominated funds. Through the EIP, clients build up their
emergency fund or invest for their financial goals affordably. BDO also
became the first institution to offer the Personal Equity and Retirement
Account (PERA) to Filipinos to help them augment their retirement pay
and plan for a comfortable retirement. By providing financial education
and offering BDO EIP and PERA, the Bank makes it possible for Filipinos
to have better access to financial products and services. These initiatives
help promote social and economic inclusion in the country.

Throughout 2021, BDO Trust conducted several live and recorded

webinars teaching both clients and potential clients proper budgeting,
wise investing habits, and retirement planning. The use of technology
enabled BDO Trust to carry out its training and educational activities
despite limited mobility. This also allowed us to reach 1,779 participants
across the country. BDO Trust runs different types of seminars to cater
to the different investment needs of Filipinos: Start (on the basics of
investing), Fit (on how to create a simple and effective financial plan),
Move (on understanding how to diversify your investment portfolio), and
Forward (on how to prepare for your retirement). BDO Trust also offered
special webinars on demand for clients interested to invest in PERA or to
know more about the benefits and features of BDO Easy Investment Plan.
Total Number
of Financial Literacy Total Number of
Webinars Held in 2021 Talks Conducted Participants
Start
Fit
Move
Forward

Total
P3.5
BDO Easy Investment Plan billion
The BDO Easy Investment Plan (EIP) serves both novice and savvy EIP Assets Under
investors who have increasing interest in the EIP. This is evident through Management

36,000
the consistent growth of Assets Under Management (AUM) for the past
three years, resulting in AUM almost reaching the P3.5 billion mark.
Almost 36,000 clients have EIP accounts with BDO Trust. EIP Clients

24
 BDO Easy Investment Plan

38000 4,000 38,000

3,488
3,500
3,075
3,000 2,742
2,500 35,999 36,000
2,500

Accounts
AUM

2,000

1,500
34,000
1,000

500

32000 - 32,000
2018 2019 2020 2021
AUM (in millions) No. of Accounts

BDO Personal Equity and Retirement Account

(PERA)
BDO Trust was the first trust entity accredited by the Bangko Sentral ng
Pilipinas and the Bureau of Internal Revenue to become an administrator P122.83
for PERA, a voluntary retirement savings account. Since December 2016
when PERA was launched, BDO Trust has continued to push for PERA million
through free retirement seminars to both clients and the general public. PERA Investments
As of December 31, 2021, BDO Trust serviced 1,605 PERA individual
contributors with a total investment of P122.83 million in BDO PERA UITFs, 1,605
up from P84 million the previous year. PERA Individual
Contributors
PERA

2000 140 2,000

122.83
120 1,750
1,605
1,500
100
78.71
1,250
Accounts

80
AUM

1,188 1,000
60 46.84
750
40 24 692 500
20 427 250

0 0 -
2018 2019 2020 2021
AUM (in millions) No. of PERA Accounts

BDO ESG Equity Fund

The BDO ESG Equity Fund was created in 2015, the country’s first ESG-
themed UITF to support and promote local companies supportive of
societal and sustainability goals, primarily defined through exemplary
environmental, social, and good governance attributes — factors that
measure the sustainability and ethical impact of an investment.

The BDO ESG Equity Fund subscribes to specific guidelines based on the
International Finance Corporation’s (IFC) criteria for ESG investing — an
advantage of the Bank’s longtime productive partnership with the IFC. The
Fund does not invest in companies with the primary business of selling
alcohol or tobacco, or engaging in gaming or mining.

25
 The Fund has the potential to grow exponentially in size and importance
as more investors start to see value in socially responsible investing. 223%
More clients prefer companies that manage their environmental Net Asset Value Growth
and social risks and practice good governance which they believe from 2016-2021
create positive contributions to society. BDO has taken a more active
approach in promoting the BDO ESG Equity Fund to both retail and 88%
BDO ESG Equity
Fund Growth
In the past five years since it was first launched, the BDO ESG
Equity Fund Net Asset Value (NAV) has grown considerably. As of end
December 2021, the Fund’s NAV is at P179.12 million or approximately
US$3.5 million. That’s a 223% increase or an average growth of 29% in
5.89%
Return On Investments
NAV per year for the past 6 years. Year-to-date, the Fund has grown by in 2021
88% mainly due to clients starting to consider sustainable investing
and also due to its outstanding performance. The Fund has returned
5.89% to investors in the past year, outperforming the Philippine Stock
Exchange index (PSEi), by more than 5%. The Fund also provided robust
long term returns, outperforming the PSEi by more than 3% in a 5-year
period and since its inception. The BDO ESG Equity Fund posted 1.44%
Compound Annual Growth Rate (CAGR) since its inception compared to
the benchmark CAGR of 0.93%.

BDO ESG Equity Fund

100
200
179.123
100%
180 88% 90%
160 80%
140 70%
120 60%
NAV

100 95.507 50%

80 75.151 40%
60.122 66.564 27%
60 55.496 30%
40 13% 20%
8% 11%
20 10%
0%
0
0 0%
2016 2017 2019 2020 2021
NAV (in PHP millions) YOY increase in NAV

26
BDO’s Cash Management Footprint
As a full-service universal bank with the widest branch network, BDO
has become one of the biggest providers of Cash Management Services P8
(CMS) in the country. This remained true all throughout the pandemic
as BDO facilitated both non-digital and digital CMS. Clients appreciated trillion
how BDO was able to operate even during weekends and, whenever CMS Transactions
possible, during extended banking hours. Access to cash, especially via Processed
payments and collections, became crucial to the survival and recovery of
businesses and individual customers during the pandemic crisis. 100
BDO provides CMS in all major cities including cash pick-up and delivery,
checks printing and releasing, and postdated checks warehousing. The million
Bank’s corporate online banking platform, Business Online Banking (BOB), CMS Transactions
provides banking convenience in a secure way, wherever the customer Volume
is located.

In 2021, BDO Cash Management’s total client base reached 61,277

42%
CMS Deals Growth
corporate names. Of this total, 42% were either newly on-boarded into
Cash Management Services (CMS), or expanded their CMS business by
signing up for additional CMS products. Total CMS transaction volume in
2021 was a little over 100 million, with value of more than P8 trillion in
processed transactions for collections and payments combined.

With the continuing impact of the pandemic in 2021, BDO CMS focused
on introducing, educating, and migrating customers to its digital products
and services. The CMS team continued to leverage on the strength
and convenience of BDO channels in providing digital solutions so that
customers can continue to bank safely from their homes or offices.

Recognizing that small and medium enterprises (SMEs) were hit hardest
by the pandemic, BDO CMS focused its efforts in supporting this market
segment. The move resulted in significant percentage gains from both
new clients or new availments from current clients by 83% in 2021.

Product sustainability via partnership

Apart from the CMS team’s own efforts to deliver Cash Management, they
also forged partnerships in support of the Bank’s Product Sustainability
Strategy that commits to provide banking access to the underserved.
BDO CMS provided access to cash machines in partnership with ATM
providers who have the capability to install ATMs at an accelerated
pace and use cash recycling, reducing efforts, and optimizing cash
servicing. CMS also sponsored the settlement requirements of fintech
companies or e-Money providers to further accelerate financial
inclusion. The CMS team now consciously seeks out business partners
with particular objectives that are in line with the principles of

27
 CASE STUDY

Seed Company
East-West Seed (EWS) is a global seed company that develops,
produces, and markets hybrid tropical vegetable seeds to some
20 million smallholder farmers worldwide. Founded in 1982 in Lipa
City, Batangas, Dutch seedsman Simon Groot and Filipino seed trader
Benito Domingo had a vision to improve the income of smallholder
farmers in the tropics through its high-quality seeds. But just like a
seed that began seeking fertile ground to thrive in, EWS struggled at
first to gain the confidence of the Filipino farmers.

EWS has since grown to become one of the 10 largest vegetable seed
companies in the world. Using superior vegetable breeding combined
with a carefully cultivated nurtured relationship with local farmers
wherever it operates, East-West Seed has grown exponentially over East-West won over Filipino farmers
the many years and holds market leader position in not just the with higher returns from hybrid seeds
Philippines but also Thailand, Indonesia, Myanmar, and Sri Lanka, tailored to local farming conditions

while also expanding its business activities in India, China, South

America, and Africa.

Amid the pandemic, East-West Seed also hit a milestone on the

financial side of things: the company recently switched to digital
platforms in handling most of their financial transactions and

on the way the company accessed its funds, collected payments,

and issued checks. Before the pandemic, a lot of these processes
were done manually by him and his team. But when the pandemic
hit, many bank branches were closed; it was no longer possible to
physically transact with banks.

The CMS provided by BDO to East-West Seed Philippines included the

automated check writing facility that allowed the company to hand
over the tasks of check writing to BDO.

Switching to automated check writing also meant that the

record-keeping and access to financial information became digital
as well. Julius said that this is more convenient since he could now
quickly access the information he needs on his laptop with just a few
clicks. Once the nominated authorizer of the company approves the
transactions, the checks are printed by BDO and then picked up by
the payees at a BDO branch, making for a convenient and stress-free
customer experience. Even processing of customer payments is made
so much easier.

“Overall, BDO cash management helped us become more efficient in

terms of time and monetary cost for our financial operations. We save
so much time, money, and effort now that many of these financial
administrative tasks were integrated into a cash management
system,” said Julius.

28
Finding ways for Filipino

Despite the spread of new and more contagious variants of the COVID-19
virus in 2021, BDO Remit successfully expanded its business and greatly 17%
increased its transactions volume globally, thanks to its ability to sustain Growth in
24/7 operations facilitating remittance transactions from Overseas Total Remittance
Filipinos Workers (OFWs) worldwide. Transactions

Amid the pandemic, BDO Remit offices remained open, while its
marketing representatives in Asia, Middle East, North America, and Europe
18%
Growth in Total
continued to serve their clients who were in dire need to send money
Remittance Volume
as emergency assistance to their loved ones in the Philippines. The Bank
even opened an office in Dubai, one of its largest markets in the Middle
East, which served as an OFW hub to assist customers on their acounts
and other financial queries.

Sustaining its presence and operations served the Bank well, as it

facilitated thousands of overseas accounts in 2021, representing an 84%
increase from the previous year. BDO remittance transactions grew by
17%, while its remittance volume also grew by 18% as of December 2021.
This is a remarkable accomplishment as the remittance industry volume
grew by only 5% as of the same period (per BSP data).

Sailing through rough times

The new BDO office in Dubai
BDO Remit clients who maintain a Kabayan Savings account benefitted
greatly from the Bank's sustained operations as they were able to receive
remittances easily. Cash was always available at ATMs that were open "We appreciate
24/7. ATMs were also a safer way to claim money as they were less that BDO was
crowded than other cash pick-up locations. Among the OFWs who very the only bank
much needed assistance during the pandemic were Filipino seafarers. As catering to our
they worked through different time zones, they needed financial service needs during
providers that can support them at any given time. BDO Remit received the height of
recommendations from its manning agency partners for its round-the- the pandemic,
clock service dependability that ensured remittances were credited on especially during
time, particularly during lockdowns. As manning agencies continued to the early months
trust BDO Remit, some of them even required their seafarers to open of the lockdown."
BDO accounts before boarding.
Magsaysay Maritime
Corporation

29
 Championing the countryside
Most OFW family beneficiaries are based in the provinces, with limited
to zero access to banking services. To enable OFW family beneficiaries
to easily encash their remittances, BDO Remit campaigned for greater
awareness of the Bank's Cash Agad banking solution in areas with high
concentration of OFW families. Where bank branches or ATMs are too far
and too expensive to travel to, Cash Agad partner agents such as sari-sari
stores, pharmacies, groceries, hardware stores, and other establishments
in the community can cash out though point-of-sale machines. BDO
Remit also collaborated with local government units for the use of
A Cash Agad partner agent in
basketball courts and waiting sheds for visible marketing space. BDO
Barangay Apalit, Pampanga,
Remit also conducted a parallel campaign abroad to inform OFWs Northern Luzon, 12 kilometers away
themselves of the Cash Agad service. from the closest city

Together apart
While other banks' remittance services were disrupted due to the
173,737
pandemic, BDO Remit continued with its Pre-Departure Orientation
Seminars (PDOS), in collaboration with the Overseas Workers Welfare
OFWs
Financial Literacy
Administration (OWWA). As the PDOS shifted from face-to-face to Lessons Participants
virtual, BDO Remit provided support to OWWA by quickly implementing
enhanced internet connections in its classrooms at United Nations
Avenue and Padre Faura in Manila as part of efforts to help the 3,762
government agency achieve continuous deployment of Filipinos overseas. Financial Literacy
As of December 2021, some 173,737 participants benefitted from 3,762 Lessons Conducted
financial literacy lessons conducted by BDO Remit as part of the PDOS.

BDO Remit hoped to hold its annual (Christmas Treat)

concert in the traditional face-to-face manner similar to previous years.

instead held a Salu-salo

Macau, Japan, United Arab Emirates, the United States, Canada, Italy,
France, and the United Kingdom.

BDO Remit invited its long-time, valued clients and treated them to
a "Filipino Christmas" get-together with lots of food and fun games
with their countrymen. The clients were grateful for a very meaningful
celebration and expressed their heartfelt appreciation to BDO Remit BDO Remit held get-togethers
for making them experience the Filipino Christmas spirit after being on for clients at its overseas offices
lockdown for several months.

Scan to view Pamaskong

30
CASE STUDY
Achieving golden hopes with
financial management

Philippines’ first-ever Olympic gold medalist, who joined BDO’s

as its advocate for financial literacy for the underserved and

unbanked markets.

various weightlifting competitions to represent the country and

receives allowances while she is away from home.

to work as a bank teller — shared the lessons she has learned from
handling her finances after receiving financial incentives.

“Mahalaga ring may relationship at tiwala tayo sa bangko kung saan

natin ilalagay ang ating mga pinaghirapan. Tiwala tayo sa kanila kasi
Philippines' first Olympic gold medalist
kung gusto kong magtayo ng negosyo pagkaretiro ko, o bigyan ko and BDO brand ambassador
ng retirement ang aking mga magulang, alam nila kung paano nila
ako gagabayan. Importante ring may serbisyo sila kung saan ako
makakapagpadala ng pera sa pamilya ko sa Zamboanga habang
nagte-training ako sa abroad. Nakita ko lahat ‘yan sa BDO,” she said.
(It’s also important to have a relationship and trust in the bank where
we deposit the fruits of our labor. We should be able to trust them in
growing our finances. For instance, if I want to start a business when
I retire or provide retirement funds for my parents, the bank should
have the expertise to advise and guide me. It’s also important that
they can provide services wherever I am training abroad so I can send
money to my family in Zamboanga. I found all these in BDO.)
Financial literacy for OFWs is one of

their families when it comes to managing hard-earned money from

for the Bank and the importance of personal financial management

among millions of OFWs worldwide.

31
 Sustainability
Contribution Strategy

BDO supports the Philippine economic development

goals through financial inclusion and impact financing in
renewable energy, infrastructure, eco-friendly solutions,
green facilities, and disaster resilience initiatives.

BDO contributes to the country’s sustained economic

growth through delivering various banking products and
services that help create a dynamic business environment,
promote local and foreign investments, and accelerate
economic activities.

BDO Foundation champions financial inclusion as one

of its two key advocacies. The Foundation partners with
various institutions to bring financial education and scale
it to large target sectors, from public school students,
teachers and non-teaching personnel to Overseas Filipino
Workers to members of the Armed Forces to police
personnel nationwide.

32
Economic Impact
Over the years, BDO has strengthened its position as the country’s leading full-service bank with
capabilities to serve every Filipino’s banking needs. The Bank continues to expand its business
franchise through sustained branch expansion focused on provincial areas, supplemented by
Automated Teller Machines (ATMs), digital channels and agency banking, as well as increased
market coverage to include the unbanked and underserved segments of the population in support
of financial inclusion. These initiatives have allowed BDO to generate and distribute economic value,
supporting economic activity in the country.

As COVID-19 infection cases fell with rising vaccination coverage, the Bank continued to safeguard
the health and well-being of its employees and clients through sustained health and safety
protocols, regular testing, and active vaccination campaign; ensure the availability of its products
and services through branches and digital channels despite recurring lockdowns; and support
communities through quick disaster response and financial inclusion initiatives.

Economic Value Table Brief

Increased economic activities following the easing in mobility restrictions and gradual economic
re-opening allowed the Bank to post a 9% increase in its direct economic value generated to
P182 billion in 2021, almost back to pre-pandemic 2019 levels after the 9% decline in 2020. Over
the last five (5) years, the Bank’s direct economic value generated went up by 11% on a CAGR basis,
notwithstanding the negative impact of the pandemic on Bank operations in 2020.

Of the total direct economic value generated, about 80% or P145 billion went to direct economic
value distributed, marking a slight increase over 2019-2020 levels. Wages and benefits increased
by 12% to P42 billion, representing nearly 29% of total economic value distributed, and effectively
benefitting more than 38,000 BDO employees, helping create multiplier impact on domestic
demand/consumption. Meanwhile, other operating costs rose by 9% to P69 billion, including
expenses incurred to keep both BDO clients and employees safe through various measures,
including regular antigen testing of employees.

The Bank’s total tax payments amounted to almost P22 billion, representing its contribution in
government’s efforts to revive economic activity following the country’s deepest contraction in
2020. In addition, the Bank’s community investments amounted to P86 million as BDO actively
carried out its corporate social responsibility through BDO Foundation, by providing relief, funding
rehabilitation, and helping advance the recovery of disaster-stricken communities in the country,
as well as supporting the government’s vaccination drive through the donation of vaccines to
identified sectors.

Economic Value Table

Figures in %

2021 38% 23% 7% 12% 20% P 182B

2020 38% 22% 8% 18% 14% P 166B

2019 36% 19% 8% 16% 21% P 182B

2018 38% 21% 7% 15% 18% P 148B

2017 39% 22% 7% 14% 18% P 126B

2016 36% 23% 7% 13% 21% P 106B

2015 31%
38% 24%
24% 12%
12% 14%
14% 19% P 89B

Operating costs Payments to government

Economic value retained
Payments to providers of capital Economic value generated

33
 Managing Climate Change Risks and
Opportunities
BDO recognizes that climate change brought about by accelerated economic growth
and globalization is a planetary issue that requires an urgent global, coordinated
response. To this end, BDO supports the landmark 2015 Paris Agreement between the
world’s governments that commits to the common goal of limiting global temperature
increase to well below 2 degrees Celsius, while pursuing efforts to limit the increase to
1.5 degrees. BDO also supports the Philippines’ nationally determined contribution to
the Paris Accord to reduce its greenhouse gas (GHG) emissions within the coming years
leading up to 2030.

BDO recognizes that increased carbon emissions result in heightened environmental

and social risks — in particular, transition risks and physical risks than can directly
impact the Bank’s financial value chain. The Bank recognizes that it plays a critical
role in the Philippines towards contributing to a global low carbon economy pathway
primarily through utilizing its financial resources, extensive operations and network, and
access to millions of Filipinos worldwide.

Managing our Environmental, Social,

and Governance impact
Over the years, the Bank has adhered to sustainable finance practices that long
incorporated Environmental, Social, and Governance (ESG) in a way that it conducts
business as an organization and as a bank committed to sustainability.

From a risk perspective, the Bank has abided by its Social and Environmental
Management System (SEMS) Policy that risk-categorizes all corporate and commercial
borrowing accounts according to their social and environmental impact since 2010.
The Bank’s SEMS was co-developed with the International Finance Corporation (IFC)
and based on IFC’s ESG standards. SEMS categorizes ESG risks as High, Medium, and
Low, based on type (sector/industry), location (proximity to environmentally and socially
sensitive areas), sensitivity (potential impact whether irreversible/reversible), and extent
of environmental/social issues.

The Bank’s SEMS policy prohibits financing of any activity engaged in the following:

production or trade in any product or activity deemed illegal under host country
laws or regulations or international conventions and agreements or subject to
international bans,
production or trade in weapons and munitions, gambling, online gaming and
equivalent enterprises,
any business related to pornography and/or prostitution,
production or activities involving harmful or exploitative forms of forced labor/harmful
child labor,
commercial logging operations in primary tropical moist forest,
production or trade in wood or other forestry products other than from sustainably
managed forests, among others.

This early integration of ESG risks in the lending practice shows the Bank’s adoption
of sustainability in its business operations to achieve stability and resilience in the
financial value chain. It also antedates any global, regional or local regulations or
incentives for sustainable finance from a risk perspective.

34
Pioneering Sustainable Finance
Simultaneously, BDO also instituted its Sustainable Energy Finance (SEF) Program in
2010, in partnership with the IFC to leverage on its global experience in green finance
particularly in the technical evaluation of renewable energy, energy efficiency and green
building projects. In the same year, BDO created the Sustainable Energy Finance Desk,
later renamed the Sustainable Finance (SF) Desk, to strengthen its internal capabilities
in financing opportunities within the spectrum of sustainable energy projects and
provide value-added technical advisory to clients to ensure the projects’ viability.

The SF Desk has conducted intensive capacity building among BDO lending, credit, and
branch officers to raise awareness on the economic, environmental, and social benefits
of financing sustainable energy projects. Apart from renewable energy, the trainings
built the knowledge and confidence of branch officers and staff to engage clients in
looking into their business operations and finding opportunities to improve energy
savings through options such as retrofitting buildings, adapting energy efficient lighting
and air-conditioning systems, and developing green buildings.

The SF Desk also authored the BDO Sustainable Finance Framework (SFF) for the use
of financial instruments to fund responsible projects that facilitate climate resilience
and promote inclusive economic growth. The SFF ensures the strategic resilience of
financial products and services in accordance with BDO’s five Sustainability Strategies
and aligned with UN Sustainable Development Goals (UN SDGs).

The BDO SFF was certified and endorsed by Sustainalytics, a leading and independent
ESG research and ratings provider based in New York. In its Second Party Opinion
(SPO), Sustainalytics expressed that “BDO’s Sustainable Finance Framework is credible
and impactful, and aligns with the Sustainability Bond Guidelines of 2018, Green Loan
Principles 2020, and the ASEAN Sustainability Bond Standards 2018.” Sustainalytics also
stated that the SFF’s eligible categories will lead to positive environmental or social
impacts and advance the UN Sustainable Development Goals, specifically SDGs 2, 6,
7, 8, 11, 12, and 15. The SPO paved the way for BDO to announce its plan to offer its first
ASEAN Sustainability Bond in early 2022.

Regulatory mandate for a Sustainable

Finance Framework
On June 26, 2021, the BDO Board of Directors approved the BDO Group’s transition plan
towards a Sustainable Finance Framework (SFF), in compliance with the Bangko Sentral
ng Pilipinas (BSP) Circular 1085 of the same name.

Not to be confused with the BDO SFF for bonds issuance, the BSP-mandated SFF
compels all Philippine banks to embed sustainability principles, including those
covering environmental and social risk, in the following areas: Corporate Governance
Framework; Risk Management Systems; Strategic Objectives; and Bank Operations. The
transition is set within a 3-year period, from 2020 to 2023. BSP 1085 also mandates
the integration of environmental and social (E&S) risks in the enterprise-wide risk
management frameworks of banks into the Environmental & Social Risk Management
System (ESRMS). BSP Circular 1128 on the particular guidelines for the ESRMS was
released in October 2021.

The Board deliberations and final approval of the transition plan took place in both
the May and June 2021 full Board meetings. With key discussions led by the BDO
Chairperson and the President & CEO, the Board set out the following directions for the
Bank’s transition:

35
 Sustainability at BDO is a journey that takes into consideration the Philippine
context and the complexity and scope of BDO operations. The Bank will
continuously assess and find the optimal mix of trade-offs to strike a balance
between national economic development that requires affordable energy and the
broader goal of climate sustainability. The Bank also recognizes that the transition will
not happen overnight, but BDO is committed to keep moving forward to achieve its
sustainability goals and be responsible for its economic, environmental, and social
impact to clients, communities, and the country.
BDO will take an institutional approach to Sustainability. The Transition Plan
covers the whole BDO Group and prioritizes 7 Key Focus Areas where BDO can
make the most significant environmental, social, and governance impact as a
conglomerate. These Focus Areas were aligned with the five BDO Sustainability
Strategies, the BSP Circular 1085, and the UN Sustainable Development Goals.

BDO Transition Plan to a Sustainable Finance

Framework: Key focus areas
Objective Focus Area ESG Impact
Counterparties

operations

these

consideration

operations

workplace practices

employees

Impact
practices

Objectives

36
Earlier in the year, BDO engaged the services of Ernst & Young (EY) Philippines/SGV to
assist in crafting the transition plan and ESRMS for the BDO Group. The Focus Areas
were identified after EY/SGV’s Group-wide gap assessment of BDO’s ESG maturity and
ESG impact based on BSP 1085 requirements. To implement the plan, BDO established
its Sustainability Governance Structure (see pages 14 and 15), which identified Technical
Working Groups for each Focus Area, composed of representatives from concerned
business groups, support groups, and subsidiaries whose expertise were critical in
achieving their focus area objective. Each Working Group was tasked to review and
enhance existing policies, craft policies currently not covered by the Bank, identify
practices that needed to be articulated as policies, and create programs to bring the
policies and practices to life.

Working Group members also engaged in data gathering and research to use as
baseline for crafting draft policy, programs, and processes. Data gathering across the
Bank’s operations and supply chain proved to be a major challenge, given the Bank’s
scope and complexity. As the Working Groups engage more closely with employees on
the ground and support suppliers in their own sustainability journey, data and analytics
will be critical in tracking the Bank’s progress and identifying metrics and sustainability
goals for the short, medium, and long term. In 2022, the Working Groups will continue
to focus on achieving these and regularly reporting to the Board Committees
on progress.

Environmental & Social Risk Management System

(ESRMS)
BDO will build on its SEMS Policy for its ESRMS, based on the BSP expectations. In
consultation with EY/SGV, the Bank has identified opportunities to further embed
E&S criteria in credit and operations, along with an ESRMS responsibility matrix
and structure.

EY/SGV is currently conducting an E&S risk assessment of the BDO loan portfolio
based on the Philippine Standard Industrial Classification (PSIC), the prevailing industry
taxonomy in the Philippines.

37
 BDO Unibank Group Loan Portfolio (Consolidated)

Percent of
Industry/Sector Loan Portfolio

Manufacturing

Construction

Education

Total

Source: BDO Audited Financial Statements 2021, Notes to Financial Statement 36.c Significant Credit Exposures for Loans

Sustainable Finance:
Catalyst for ESG Transition
For more than a decade, BDO Sustainable Finance has led the Bank’s financing of eligible green and
social impact projects.

This includes business activities such as renewable energy, energy efficiency, green building, clean
transportation, pollution prevention and control, sustainable management of natural resources
and land use, eco-efficient technology, sustainable water and waste water management, terrestrial
and aquatic biodiversity conservation, climate change adaptation, affordable housing, access to
essential services, employment generation and food security.

As a pioneer in Sustainable Finance since 2010, BDO has achieved significant experience and
a robust portfolio of eligible projects with quantifiable positive economic, environmental and
social impacts. This has become the Bank’s baseline in developing the BDO Sustainable Finance
Framework (BDO SFF) which serves as its guidepost in issuing Green, Social and Sustainability
Bonds and other debt financing instruments that allow the bank to diversify funding sources and
broadens investor base to include ESG-focused investors.

Under the BDO SFF, eligible projects are expected to reduce the Philippines’ environmental footprint
and assist in the energy transition towards a low-carbon economy, as well as drive socio-economic
development nationwide.

38
 Eligible green projects require environmental benefits such as a reduced carbon
footprint and vulnerability of communities to climate change. Eligible social projects
require positive social outcome for the impoverished, excluded, marginalized,
vulnerable, disabled, undereducated, underserved and unemployed populations.

The BDO SFF identifies the following activities as ineligible for financing:

Production or trade in weapons and munition

Online gaming and equivalent enterprises
Hydroelectric plant with weir height of over 50 meters
Illegal logging, illegal mining, illegal fishing, forced labor, child labor
Production of tobacco products and palm oil
Fossil-fuel power generation or transmission, and activities dedicated to support
expansion of fossil fuel-based technologies
BDO Sustainable Finance catalyzes accelerating green recovery by financing resilient
and pandemic-ready projects that aim to achieve a sustainable financial value chain.
As of December 31, 2021, BDO financed 54 Sustainable Energy projects, with total
Sustainable Finance funded to date at P548 billion.

BDO Sustainable Energy Finance

150

119 121
120 110
(In Billion Pesos)

90

60
41

30 24
18 19
9 12
4 5
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Sustainable Energy Finance Funding

39
 CASE STUDY
Harnessing energy from biomass
The United States Energy Information Administration (US-EIA) defines
biomass as “renewable organic material that comes from plants and
animals.” The EIA states that biomass can be burned directly for heat
or converted to renewable liquid and gaseous fuels through various
processes. Firewood is one example, while animal or human waste
processed chemically or biologically is another.

As a renewable energy source, biomass offers huge clean energy

capacity opportunities for the Philippines, where there is an abundant
supply of biomass resources. These include agricultural crop residues,
forest residues, animal wastes, agroindustrial wastes, municipal solid
wastes, and aquatic biomass. Agricultural waste products as biofuels
offer an abundant, stable, and environmental alternative for fossil
fuels energy sources.

Grass Gold Renewable Energy Corporation (Grass Gold) is among

BDO’s clients engaged in renewable energy power generation. Its Photo Credit: Grass Gold
first power plant project is the construction and operation of a 12MW
(gross) Napier grass-fired plant in Llanera, Caridad Sur, Nueva Ecija
province which started commercial operations in December 2019.

Grass Gold utilizes napier grass, known locally as “buntot-pusa” for

its stalk that closely resembles a cat’s tail. Napier grass is a perennial
tropical grass used as feedstock and also found in abundance in
the Philippines. Recent studies show that it is also an ideal crop for
renewable energy power generation since it produces huge biomass
and can be harvested multiple times a year. It has very low water and
nutrient requirements and can be grown in marginal or uncultivated
land. It also planted on slopes to increase soil fertility and reduce
soil erosion. (Source: https://plantvillage.psu.edu/topics/
napier-grass/infos.)

BDO supports Grass Gold’s biomass power plant project as part of

its sustainable finance projects for renewable energy. The Bank is
a pioneer in financing biomass power plants, having financed the
country’s first Rice Husk-fired Biomass Power Plant in 2013. To date,
BDO has financed 164 megawatts (MW) of biomass power plants that
have resulted in significant positive environmental and social impacts
in the Philippines.

In 2021, biomass power plants funded by BDO generated employment

for 170,915 farmers nationwide. The projects also resulted in the
avoidance of greenhouse gas emission of 487,250 metric tonnes by
converting 1,583,082 tonnes of agricultural waste to feedstock or raw
material fuel for biomass power plants.

40
Economic, Environmental, and Social Impact
Description 2020 2021
P P

P P

P P

P P

P P

P P
P P
P P
P P
P P
P P
P P

41
 Biodiesel
Installed Capacity Disbursed Loan GHG avoidance per
Amount year based on Net
60 ML/Y*
(in tonnes CO2e)
P137 million
12,000
GHG avoidance per year Equivalent passenger Equivalent tree
based on Gross vehicle off the road seedlings grown for
(in tonnes CO2e) per year 10 years
153,732 32,640 2,541,996
and Electric Company
Bioethanol
Installed Capacity Disbursed Loan GHG avoidance per
Amount year based on Net
44.12 ML/Y*
(in tonnes CO2e)
P571 million
35,296
GHG avoidance per year Equivalent passenger Equivalent tree
based on Gross (in vehicle off the road seedlings grown for
tonnes CO2e) per year 10 years
49,540 10,518 819,153
Photo Credit: Rodel Diaz,

Biomass
Installed Capacity Disbursed Loan Net Energy Generation Gross Energy Generation
Amount (MWh/year) (MWh/year)
164 MW
P22.5 billion 1,013,497 1,202,683
Value of energy GHG avoidance per GHG avoidance
generation per year year based on Net per year
(Php/year) (in tonnes CO2e) based on Gross
(in tonnes CO2e)
P4.9 billion 410,604
487,250
Equivalent passenger Equivalent tree No. of households/
vehicle off the road seedlings grown for families (average of
per year 10 years 6 persons per family)
supplied by RE
103,451 8,056,785
230,131
Amount of agricultural No. of farmers
wastes converted to supported
feedstock/power T/Yr
170,915
1,583,082

42
Geothermal
Installed Capacity Disbursed Loan Net Energy Generation Gross Energy Generation
Amount (MWh/year) (MWh/year)
1,189 MW
P17.0 billion 5,848,520 6,498,355
Value of energy GHG avoidance per GHG avoidance
generation per year year based on Net per year
(Php/year) (in tonnes CO2e) based on Gross
(in tonnes CO2e)
P28.7 billion 2,369,446
2,632,717
Equivalent passenger Equivalent tree No. of households/
vehicle off the road seedlings grown for families (average of
per year 10 years 6 persons per family)
supplied by RE
558,969 43,532,535
1,328,002

Hydro
Installed Capacity Disbursed Loan Net Energy Generation Gross Energy Generation
Amount (MWh/year) (MWh/year)
433 MW
P28.1 billion 1,255,024 1,387,445
Value of energy GHG avoidance per GHG avoidance
generation per year year based on Net per year
(Php/year) (in tonnes CO2e) based on Gross
(in tonnes CO2e)
P6.1 billion 508,455
562,104
Equivalent passenger Equivalent tree No. of households/
vehicle off the road seedlings grown for families (average of
per year 10 years 6 persons per family)
supplied by RE
119,344 9,294,506
284,974 and Electric Company

43
 Solar
Installed Capacity Disbursed Loan Net Energy Generation Gross Energy Generation
Amount (MWh/year) (MWh/year)
369 MW
P12.6 billion 458,950 549,141
Value of energy GHG avoidance per GHG avoidance
generation per year year based on Net per year based on
(Php/year) (in tonnes CO2e) Gross (in tonnes CO2e)
P2.2 billion 228,086 270,230
Equivalent passenger Equivalent tree No. of households/
vehicle off the road seedlings grown for families (average of
per year 10 years 6 persons per family)
supplied by RE
57,374 4,468,307
104,212
Photo Credit: Rodel Diaz,

Wind
Installed Capacity Disbursed Loan Net Energy Generation Gross Energy Generation
Amount (MWh/year) (MWh/year)
75 MW
P2.9 billion 206,419 218,620
Value of energy GHG avoidance per GHG avoidance
generation per year year based on Net per year based
(Php/year) (in tonnes CO2e) on Gross
(in tonnes CO2e)
P1.0 billion 104,525
111,113
Equivalent passenger Equivalent tree No. of households/
vehicle off the road seedlings grown for families (average of
per year 10 years 6 persons per family)
supplied by RE
23,591 1,837,284
46,871

44
 BDO Sustainable Energy Finance Project Map
RE Project No. of Projects MW Capacity 20 MWe Rice Husk-Fired Power Plant 6
1 37.5 MW of 150 MW Wind Power Plant
(Burgos, Ilocos Norte) Biodiesel 1 60ML/Y* (Alicia, Isabela)
Bioethanol 2 44ML/Y*
6.8 MWp Solar PV Power Plant 19 MWe Cogeneration Plant
15
1

(Burgos, Ilocos Norte)

Biomass 164 (San Mariano, Isabela)
7

Geothermal 6 1,189
1 70 MW RoR Hydro Electric Plant Hydro 13 433 15 MWe Biomass-Fired Power Plant 8
(Alilem, Ilocos Sur) Solar 14 369 (Burgos, Isabela)
2 140 MW Hydro Electric Plant
Wind 3 75
(Benguet) Total MW 54 2,230 12 MWe Rice Husk-Fired Power Plant Phase 1 9
1 (San Jose City, Nueva Ecija)
* Million liters 1

3 31.8 MW Several RoR Hydro Projects per year

(Benguet) 12 MWe Rice Husk-Fired Power Plant Phase 2 10

(San Jose City, Nueva Ecija)

4 19 MW Several RoR Hydro Projects
(Benguet)
12 MWe Biomass-Fired Power Plant 11

(Llanera, Nueva Ecija)

2 100 MWp Solar Farm 8
7
(Tarlac City, Tarlac) 1 6
6 MWe Biomass-Fired Power Plant 12
3
2 4 (San Jose City, Nueva Ecija)
1 2 MWe Biogas-Fed Power Plant
(Tarlac City, Tarlac)
12 132 MW Hydroelectric Power Plant 6
6 10 9 12
2 12 MWe Biomass-Fired Power Plant 11
(Nueva Ecija - Pangasinan)
(Orani, Bataan) 2 1

0.32 MWe Rice Husk-Fired Cogeneration Plant 13

3 0.3 MWp Solar Rooftop (Sta. Maria, Bulacan)
(Ortigas Center, Pasig City) 13
2
13 3
1 24 MW of 54 MW Wind Power Plant 2
4 63.29 MWp Solar PV Farm 2
(Pililla, Rizal)
(Calatagan, Batangas) 11

5 8 MW RoR Hydro Electric Plant 4 9

1.8 MW Mini-Hydro Project 7

(Bugasong, Antique)
7
8 (Buhi, Camarines Sur)
15
3 7 MWe Biomass-Fired Power Plant 3
2.1 MW RoR Mini Hydro Plant 8
(Brooke’s Point, Palawan) 9 (San Miguel, Catanduanes)
12
1 192.5 MW Geothermal Power Plant
(Valencia, Negros Oriental) 1.5 MW RoR Mini Hydro Plant 9

(Obi, Catanduanes)
2 49 MW Geothermal Plant 9
(Nasulo, Negros Oriental) 5.2 MWp Solar Rooftop 9

(Ormoc and Sorsogon)

1 14.12 Million liters per year, as per DOE 5
(Talisay City, Negros Occidental) 4
5 140 MW Geothermal Power Plant 3

5 (Manito, Albay)
4
2 30 Million liters per year, 1 6

as per DOE 112.5 MW Geothermal Power Plant 4

2
(Negros Occidental) (Tongonan, Leyte)

4 20 MW Turbogenerator 1 588.4 MW Geothermal Power Plant 5

(Silay City, Negros Occidental) 2
(Tongonan, Leyte)
3 10
5 133 MWp Solar Facility
(Cadiz City, Negros Occidental) 12.9 MW of 25.8 MW RoR 10

Mini Hydro Electric Plant

(Jabonga, Agusan del Norte)
6 0.325 MWp Solar Rooftop
(Bacolod) 11
1.6 MW Mini-Hydroelectric Plant 11

(M. Fortich, Bukidnon)

7 0.5 Solar PV 8
13
(Zamboanga City)
10 MW Hydroelectric Power Plant 12

(Oriental Mindoro)
7
8 0.32 MWp Solar Rooftop 5 6
(Zamboanga del Sur) 106 MW Mindanao Power Project 6
10
14 (Kidapawan, North Cotabato)
5 15 MWe Biomass-Fired Power Plant
(Sultan Kudarat, Maguindanao) 28.59 MWp Solar PV Power Plant 10

(Digos, Davao del Sur)

1 60 ML/Y Biodiesel Production Plant
(Bagong Ilog, Pasig)
6 MWe Biomass-Fired Power Plant 14

(Surallah, South Cotabato)

13 1.17 MWp Solar PV Rooftop
(Western Bicutan, Taguig City) 3
14 10 MW Biomass-Fired Power Plant 15

14 28.76 MWac/ 1,553MWac Solar PV Plant (New San Roque, Pili, Camarines Sur)
(Jaisalmer district of Rajasthan, India)
1.128 MWp Solar Rooftop 11

13 2.4 MW Mini-hydro Power Plant (Carmona, Cavite)

(Maramag, Bukidnon)
0.015 MWp Solar Rooftop 12
3 14.1 MW of 762.80 MW Wind Power Plant (Umingan, Pangasinan)
(Jaisalmer district of Rajasthan, India)
India

45
 BDO Resource Consumption
Water Consumption Electricity Consumption Fuel Consumption
(in ‘000 cu.m) (in ‘000 kWh) (in liters)

2021 2021 2021

934.6 161,448 63,457

339.1 595.5 46,528 114,920 43,437 20,020

2020 2020 2020

600.5 71,365 35,280

325.3 275.2 43,110 28,255 8,937 26,343

2019 2019 2019

825.4 98,648 51,911

458.6 366.8 53,737 44,911 31,911 20,000

Branches Offices Branches Offices Diesel LPG

GHG Emissions 1,2 Recycled Water

(in tonnes CO2e) (in million liters)

2021 2021

115,774 58.6
430 115,344

2020 2020

51,138 63.8
66 51,071

2019 2019

70,667 60
118 70,550

Scope 1 Scope 2 Corporate Center Ortigas

(1)
Calculated following the operational control approach of the Greenhouse Gas Protocol. Moreover,
Scope 2 emissions were computed using the 2015-2017 National Grid Emission Factors provided by the
Department of Energy.
(2)
Scope 1 emissions were based on the fuel consumption of the company, while Scope 2 emissions were
based on the purchased electricity of the company

BDO’s resource consumption in 2021 continued to be directly impacted by government-

imposed lockdowns during the pandemic. Three particular factors account for
the increased consumption from both pre-pandemic 2019 figures and the 2020
consumption figures: lockdowns, BDO’s split operations strategy, and the temporary
relocation of BDO offices in Makati City.

Lockdowns and prolonged high alert levels were more frequent in 2021 due to the
Delta surge. Offices and branches observed shortened work hours and more groups
implemented work-from-home arrangements which meant lower electricity use and
water consumption. However, these were also offset by the continuous implementation
of the Bank’s business continuity strategy for Split Operations, where business groups
and support groups maintained physical presence in both corporate hubs at Makati City
and Ortigas Center in Mandaluyong City, along with other key sites in Metro Manila. Split
operations effectively doubled the office space needs for business and support groups
in these locations.

46
At the same time, BDO implemented temporary office transfers
throughout 2021, as it emptied the BDO Corporate Center Makati’s (CCM)
North and South Towers to clear the way for the planned construction
of a new BDO CCM campus in the same location. Business groups and
support offices were relocated to several buildings nearby (BDO Towers
Valero, BDO Towers Paseo, BDO Salcedo Tower, and The Podium West
Tower), while both North and South Towers were still in operation.

BDO also opened 12 additional branches nationwide to better serve

clients in areas where financial services were greatly needed.

The Bank remains committed to measuring its resource consumption and

managing its carbon footprint as it continues to grow as the country’s
largest bank with the most number of branches and corporate facilities.

Resilient Recovery for

Economic Frontliners
On the second year of the COVID-19 pandemic, BDO branches — the
Bank’s frontline unit — showed that continuous operation was not just
about survival, but also about the agility to embrace and thrive in the new
normal. True to the Bank’s Customer-Focused value, branch frontliners
took on the critical task of providing uninterrupted access to financial
services, in order to address BDO customers’ most pressing and evolving
financial needs, and to keep the economy going with much needed cash.

BDO branches continued to operate even during higher alert level

periods by strictly observing mandatory health protocols to keep both
employees and customers safe. The Bank’s manpower resources
were adjusted based on the community quarantine classification
and COVID-19 status in areas where they operate, and this was
communicated widely to customers so they can plan and prepare for
their transactions accordingly.

The value of vaccination

To protect the Bank’s frontliners, BDO prioritized weekly COVID-19 testing
for branch employees. Once vaccines became available, BDO launched
its vaccination program for employees and their families, once again Throughout the pandemic, 99% of BDO
prioritizing branch frontliners. Regular COVID-19 screening tests were branches remained open and ready to
provide banking services, albeit with
held at BDO corporate offices and large office hubs, while vaccines and reduced manpower and shortened
boosters were administered in coordination with the branches’ respective bank hours.
local government units.

As a result, 98.2% of branch personnel were vaccinated in 2021, enabling

them to be fully prepared and protected to serve the needs of our
customers wherever and whenever face-to-face transactions were
possible and necessary.

Other prevention measures observed at BDO branches were the

following: 1) a mandatory temperature check for all upon entering bank
premises, and a second mandatory check for employees at midday;
2) wearing of face masks and face shields; 3) provision of health kits to
employees, specifically alcohol for hygiene and vitamins for personal
consumption; 4) provision of alcohol and sanitizers for the use of
customers; and 5) imposed physical distancing inside branch premises.

47
 In terms of infection control, COVID Care telemedicine facilities were
made available to employees for consultations with doctors and health
diagnostic services. COVID-19 tests were done weekly during surge
periods, such as during the Delta variant surge from July to October 2021.
Otherwise, testing was conducted twice monthly for client-facing
employees and once for those working in the backroom. Employees
who turned out to be close contacts of a confirmed positive case
were automatically scheduled for a Reverse Transcription Polymerase
Chain Reaction (RT-PCR) test for COVID-19. Upon testing, the concerned
employees were required to go on home quarantine and advised to
isolate from other household members, while awaiting test results.
Employees who tested positive were given a complete health kit
containing a thermometer, a pulse oximeter, medicines for colds and
cough, a gargle solution, and vitamins. Contact tracing was conducted
through the QSafe app.

Branches with COVID-positive cases were disinfected through daily

misting done by accredited service providers that adhere to Occupational 98.2%
Safety and Health Standards on disinfection methods. In addition, BDO Branch
workstations and high-touch areas were subject to regular deep cleaning Personnel Vaccinated
and disinfection.

To supplement the branches’ prevention and infection control measures,

12
New BDO
employees were kept informed on proper safety and hygiene practices Branches Opened
via email and on-site posters. The vaccinations, as well as related policies
and programs to help prevent the virus from spreading, are aligned with
the UN Sustainable Development Goal (SDG) 3 on ensuring Good Health
and Well-being.

Keeping the economy running

Demonstrating its commitment to support the country’s economy during
the pandemic, the bank kept 99% of its branches open, with some
branches able to resume Saturday banking despite reduced manpower. A
“buddy branch” system was also implemented to support transactions for
clients of closed branches or those with shortened hours. BDO opened
12 new branches in 2021 — proof that presence and access for clients
remained a top priority.

While some clients chose to do banking transactions in the comfort

of their homes, there were still a substantial number of clients who
preferred or needed to transact at branches.

For clients who have shifted towards convenient and safe online banking,
BDO promoted the features of its digital channels. Online transactions
and services include viewing of account balances and transaction details,
sending money and paying bills, and new account opening. As online
payment activity soared during the pandemic, BDO branches also took
the opportunity to promote BDO Pay. Developed by the Bank’s digital
banking group, BDO Pay enables customers to make payments using a
QR code, request funds, and split bills.

At the branches, a new Customer Relations Management (CRM) system

for onboarding new clients was implemented as part of the branch
transformation initiatives of the bank. Clients could open a new account
in these convenient ways. First, clients submit the new account
application form online without visiting the branch. Clients are then

48
invited to a virtual interview, for the Bank to perform the Know-Your-
Customer validation process. Another way to open accounts would be
using a dedicated laptop or using the client’s own digital device, all inside
the branch; hence without need for filling up of paper forms.

Branches also adopted a new queue management system that offered 14%
paperless transactions processing where clients can input their CASA Deposit Growth
transactions in a kiosk in the branch, instead of filling up forms. For a
more seamless and safer customer experience, clients have the option 11%
to book an appointment online for their branch visits, receive a QR code Foreign Currency
to be scanned once they reach the branch, and immediately fall in queue. CASA Deposit Growth
This new customer experience generated positive response in lesser
physical interactions, time-saves and an efficient digitized way of banking.

With continuous operations throughout the year, BDO branches showed

consistent growth in deposits, with peso savings and current accounts
posting 14% growth in 2021. Foreign currency denominated savings
accounts growth was at 11% and total funds grew by 8%.

These services not only paved the way for clients to have better
financial access when they needed it most, but they also support SDG
17 on Partnerships for the Goals, specifically target 17.8, which aims to
“fully operationalize the technology bank and science, technology and
innovation capacity-building mechanism for least developed countries
by 2017 and enhance the use of enabling technology, in particular
information and communications technology.”

BDO Network Bank

As the Philippines’ largest community bank, BDO Network Bank
(BDONB) brings modern and relevant banking services to unbanked and
underserved communities. Unbanked Filipino adults are at 51.2 million,
out of a total 72 million adults, according to the latest financial inclusion
survey report of the Bangko Sentral ng Pilipinas (BSP). BDONB aims to
fill this gap with a wide range of banking products that include loans,
deposits, remittances, bills payment and other banking services through Rose Joy Reyes, BDO Network Bank
its network of 351 branches and loan offices, and 334 Automated Teller depositor in Naga. BDONB made
Machines across the Philippine archipelago. In 2021, BDONB marked it possible for her to continue her
business during the pandemic,
a 34% increase in its number of branches and loan offices compared ensuring ease of transactions from
to pre-pandemic numbers in 2019, and a 20% increase from the Luzon to Mindanao.
previous year.

MSME Financing
BDONB focuses on the development of the Micro, Small, and Medium
Enterprises (MSME) market segment. In 2021, MSME loan bookings rose 75%
75% from the previous year and MSME loans were made available in MSME Loan
45 new offices. MSME standalone offices increased by 23% compared Booking Growth
to 2019 and an increase of 16% in 2021 compared to 2020. BDONB
personnel servicing this market segment likewise grew by 13%. MSME
teams drive financial education by advising clients on how to improve
their businesses, and reinforcing the importance of saving and connecting
with the bank to manage their finances. BDONB teams also led various
outreach initiatives to communities affected by the pandemic and
natural disasters.

49
 Client Success Stories

, is a persistent business owner from humble beginnings.

She started selling two sacks of sweet potatoes in the wet markets of
Nagcarlan, and eventually grew her business up to a point where she now

provinces of Cavite and Batangas. The loan granted to her by BDONB helped
her buy additional sweet potatoes to supply her growing number of clients.
Because of the continuous growth of her business, she was also able to buy a
truck to help her with her deliveries and employ 15 employees who also have
their own families to support.

Arlene Gener expressed her gratitude to BDONB for her access to additional
inventory after she applied for and received a business loan in 2020. She
is a widow, mother of two kids, and a former overseas Filipino worker in
Dubai where she served as a family driver for three years. She returned to
the country and became an entrepreneur in 2017. Using the money she
saved from working abroad, Arlene started her rice retailing business in the
Sta. Maria, Bulacan Public Market. Today, she is one of its biggest retailers,
selling an average of 500 sacks of rice per week, and providing work for her
three employees.

is a former OFW who worked in Riyadh at a banking

institution for two years. He left this stable job because he couldn’t stand
being away from his family, and returned to the Philippines to support his
wife who manages their grocery store in Cainta, Rizal. The couple availed of
the BDONB business loan that helped their business grow as they were able
to open another stall. The additional income produced from their business
helped them cover the tuition of their children. He and his family are grateful
for their situation given that many lost their jobs during the pandemic.

Liza Castro is a single mom to two kids and a Master Teacher at Batad
Central School in Iloilo province. A client since 2016, Liza is thankful to
BDONB for helping her open various businesses such as online selling of

professionals who cannot afford the minimum hourly rates of regular internet
cafes or only need to use the internet for a short time. Liza’s earnings made
it possible for her to renovate her house and buy her own multi-cab, a small
light truck for business. With advice from BDONB, she was able to consolidate
her debt and manage her proceeds.

Leofer Alviola, married with two kids and a local government employee,
started a meat dealing business at the Digos Public Market in Davao del
Sur. She has been a BDONB client for over 15 years and has availed of loans
multiple times. Her first loan was used for additional capital, while succeeding
loans were used for business growth. During the height of the pandemic,
she was able to expand her own meat corner. The expansion successfully
addressed the needs of customers who wanted to avoid going to the more
heavily populated public market.

50
Salary Loans for Public School Teachers
21.5%
Of the salary loan releases in 2021, 58% were for teachers in Mindanao Salary Loan
where the BDONB’s main area of operations is located. In 2021, loan Balance Growth
balance grew by 21.5%, the highest Accounts Receivable on record. Loan
releases grew substantially by 40% compared to 2019 due to easing of
pandemic restrictions. BDONB’s customer base grew by almost 25% as it 40%
continues to expand in rural areas nationwide. In terms of Salary Loans Salary Loan
reach, there was an increase of 26% in 2021 compared to 2019 and an Releases Growth
increase of 20% in 2021 as compared to 2020 figures.

BDONB provides other support services for teachers. Bank employees 25%
arranged for financial wellness discussions to help teachers manage their BDONB Customer
finances. During the second year of the pandemic, BDONB continued Base Growth
to support the Brigada Eskwela (School Brigade) and Balik-Eskwela
(Back to School) initiatives of the Department of Education by providing
school supplies such as bond paper, pad paper, printers, and ink,
and health protection supplies like alcohol and face masks to public
schools in remote areas of the country. BDONB also closely worked with
BDO Foundation and SM Foundation to donate laptops and computer
equipment.

More than the provision of loans as start-up capital to small businesses

and salary loans to public school teachers and government employees to
fund their needs, BDONB’s main campaign is to drive inclusive economic
growth across all its market coverage. By teaching clients to borrow with
purpose, BDONB forges strong and lasting banking relationships with
the unbanked and underserved market so that they also understand
the value of saving, investing, and growing their finances for a healthy
financial future.

BDO Foundation: Financial Inclusion

through financial education
As the COVID-19 pandemic continued to severely impact the economic
well-being of Filipinos in 2021, BDO Foundation’s efforts to promote
financial inclusion gained greater significance and scale.

Working closely with the Bangko Sentral ng Pilipinas (BSP), BDO

Foundation continued to collaborate with the Department of Education
(DepEd), Overseas Workers Welfare Administration (OWWA), Civil Service
Commission (CSC), and Armed Forces of the Philippines (AFP) for the
implementation of financial education programs. Building on the success
of these partnerships, the Foundation and the BSP also partnered with
the Bureau of Fire Protection (BFP), Philippine National Police (PNP),
Bureau of Fisheries and Aquatic Resources (BFAR), and Agricultural Credit
Policy Council (ACPC) for the launch of new financial education programs
in 2021.

The partnerships benefit public school students, teachers and non-

teaching personnel; overseas Filipino workers (OFWs) and their families;
civil servants; uniformed and civilian personnel of the armed forces;
personnel of the government’s fire service agency; the police; fisherfolk;
and farmers.
BDO Foundation has developed 26
The financial education programs, which support BDO Foundation’s financial education videos, all of which
are available for viewing on the BDO
financial inclusion advocacy and BSP’s National Strategy for Financial Unibank YouTube channel.

51
 Inclusion, help strengthen the capability of government agencies to
provide financial literacy training to their beneficiaries. The programs are
embedded and mainstreamed in the existing training and development
initiatives of the partner agencies. They aim to equip the target audience
with the tools, knowledge, and resources to make sound financial
decisions through lessons on saving, budgeting and financial planning,
debt management, entrepreneurship, investments, insurance, digital
literacy, scam prevention, and retirement planning.

In 2021, several projects were completed to support the deployment of

the programs nationwide.

DepEd issued DepEd Order No. 022, Series of 2021, detailing its
Financial Education Policy to ensure that financial education will be
taught nationwide using the materials developed by BDO Foundation.
The policy covers all learners, teachers, and non-teaching personnel
from public and private elementary, junior and senior high schools,
as well as learning centers for Special Education, Alternative Learning
Systems, Indigenous Learning Systems, and the Madrasah Education
Program covering Muslim culture, customs, and traditions. The financial education program for
public schools, BDO Foundation’s
The Foundation and DepEd partnered with Huawei Philippines as partnership project with the DepEd and
BSP, aims to institutionalize financial
sponsors for a teacher competition called the “Search for the Best
education in the K to 12 curriculum
Supplemental Learning Materials in the Teaching of Defined Key and in the regular training programs for
Concepts in Science and Mathematics.” The nationwide contest was teachers and non-teaching personnel.
designed to encourage teachers to submit innovative learning modules
that integrate financial literacy into the teaching of Science and Math
subjects. The partnership with Huawei included the donation of 33
laptops to selected public schools. 2,676,297
AFP officers conducted a focus group discussion funded by BDO No. of beneficiaries reached
Foundation, to identify the financial literacy lessons that the armed to date through financial
forces will cover in its training courses. education programs
The Foundation, BFAR, and BSP created the Fish N’ LEarn game, an
innovative gamified teaching tool designed to make financial literacy
lessons engaging for fishers. Through the training intervention,
participants are expected to learn lessons on conserving marine
resources, saving for the future, expanding sources of income, proper
use of insurance, and debt management. The target audience will be
provided with instructional materials, cards, and play money produced
by BDO Foundation.
In partnership with BSP, CSC, AFP, BFP, and BFAR, four learning modules
were drafted for civil servants, armed forces personnel, firefighters, and
fishers. Three new financial education videos for the armed forces were
produced. Five virtual learning sessions were conducted for DepEd,
CSC, and BFAR personnel. An online training session was also facilitated
for farmers in partnership with East-West Seed.

For the fourth consecutive year, BDO Foundation supported the BSP’s
Financial Education Stakeholders Expo, a five-day virtual event that
gathered financial education advocates. Together with the BDO Trust and
Investments Group, the Foundation featured the Personal Equity and
Retirement Account or PERA in its virtual booth. Working with BDO Remit,
film actor and BDO brand ambassador Piolo Pascual shared financial The Fish Right program of the United
literacy lessons and his personal approach to money management States Agency for International
in a plenary session on “Preparing the Filipino Youth for a Financially Development (USAID) supports
the financial education program
Healthy Future.” for fisherfolk.

52
Guided by the “We find ways” philosophy, BDO Foundation continues to serve
communities in need despite the lockdowns and limited mobility during the pandemic,
mindful of the Bank’s commitment to sustainable development, social responsiveness,
and nation-building.

Other projects
Donation of 170 computers and ten scanners to public schools in partnership with
BDO Network Bank in support of DepEd’s Basic Education Learning Continuity Plan
during the pandemic

Donation of over 900 books to Caritas Manila and the Manila City Library

Sponsorship of SEAMEO INNOTECH’s “Digital Well-being of Filipino Learners: A

Webinar on Youth Cybersafety and Digital Citizenship,” an online event that featured
discussions on how educators can cultivate a secure online environment for learners
amid the pandemic

Sustainability Partnerships
BDO believes in the power of collective action to generate greater understanding and
action for sustainability. Bearing in mind the environmental, social, and governance
topics important to our stakeholders, the year 2021 saw the Bank engage in key
partnerships to advance sustainability initiatives in the region and in the Philippines.

Regional Collaboration: Asian Transition Finance

Study Group
The energy transition from fossil fuel to renewable sources of energy is key to the global
response to climate change. For financial institutions, this means divesting from fossil
fuel financing and shifting to renewables, while encouraging enabling technology and
supporting clients throughout the transition. In Asia, the transition journey takes on a
complexity of its own, given, among others, the lack of a common framework to enable
financial support for transition to happen in ASEAN countries.

The Asian Transition Finance Study Group was established in September 2021, led by
MUFG Bank of Japan, in pursuit of an Asian version of transition finance that is more
realistic and achievable for Asian nations. The Study Group aims to supplement existing
guidelines on transition finance to help financial institutions implement the guidelines.
The Group recognizes that both private and public funds will be critical in achieving
the transition, and thus, clear guidelines and approaches to transition finance will be
instrumental in supporting the mobilization of private capital.

BDO joined regular meetings throughout 2021 and continuing in 2022, with other key
financial institutions from Japan, Indonesia, Malaysia, Thailand, Singapore, and Vietnam,
along with the International Finance Corporation, and other US and European financial
institutions which invest and lend in Asia. The Study Group’s recommendations and
activities will be shared with key Asian economic and climate meetings, including the
Asia Green Growth Partnership Ministerial Meeting.

BDO believes that its sustainability journey, along with other Asian financial institutions,
will be more gradual in pace compared to counterpart banks in Europe and the United
States. But in collaborating with others, BDO welcomes the opportunity to bring
everyone towards the same direction and better manage the energy transition for
Asian nations.

53
 Business and Human Rights: Partnership with
the Philippine Commission on Human Rights
BDO partnered with the Philippine Commission on Human Rights (CHR) to
better understand and uphold the role of business, and in particular the
Bank, in respecting and protecting human rights.

The partnership aims to build BDO’s capacity to create and implement

its own Human Rights policy across its operations; help BDO create its
own Human Rights Impact Assessment Tool that can inform BDO’s risk
assessment for social risks; and overall, manage BDO’s human rights
impact and responsibility to respect and protect the human rights of its
stakeholders.

The CHR has conducted sessions on the UN Guiding Principles on

Business and Human Rights with BDO senior officers, and with a core
group of key employees who are part of the Bank’s technical working
groups on ESG focus areas. In 2022, BDO and the CHR will continue
to conduct learning sessions for key business units and support units,
particularly in relation to human rights in the workplace, in lending, and in
the Supply Chain.

Empowering Women in MSMEs:

Early in 2021, BDO participated in the study “Rebuilding Better:

Assessment of Women Entrepreneurs’ Needs and Available Support
Services during COVID-19 in Malaysia, Philippines and Thailand”
conducted by the International Labour Organization’s (ILO) Rebuilding
Better: Fostering Business Resilience Post-COVID-19 Project. Supported by
J.P. Morgan, the Project aims to support women entrepreneurs to recover
from the COVID-19 pandemic and adopt more sustainable and resilient
business models by strengthening their access to training, finance and
markets, while incorporating digitalization as a cross-cutting theme.

BDO shared financial inclusion initiatives that target micro, small, and
medium enterprises: BDO Network Bank’s focus on the unbanked
and underserved in communities outside of urban areas, and BDO
Foundation’s financial education programs across various sectors of
society. These sectors cover public school students, teachers,
non-teaching personnel, Overseas Filipino Workers, government
employees, military personnel, police personnel, firefighters, fisherfolk,
and farmers.

The study, which aimed to inform the strategy and workplan of the
Rebuilding Better Project, recommended that when it comes to access
to finance, the Rebuilding Better Project should include financial and
non-financial options for women entrepreneurs who do not want to
take on debt, given that many entrepreneurs are hesitant to do so
during the COVID-19 crisis, and should also seek opportunities to link
financial support with non-financial support, such as through financial
literacy training.

In 2022, BDO will collaborate with the ILO in a series of webinars for
women entrepreneurs addressing their needs for financial products and
services, as well as financial advice on budget management, savings,
credit, and investments.
54
Human Capital
Sustainability Strategy

Sustainability is everyone’s responsibility at BDO. The Bank

aims to develop a “can lead” workforce with a sustainability
mindset that BDO bankers can bring to work, at home, and
wherever they find themselves in the world. BDO bankers
strive to live the core values of Customer Focus, Out-of-the-
Box Thinking, Right Attitude, and Excellent Execution with a
sustainability perspective embedded in everything they do.

55
 Employee Profile
Employee Count New Hires Employee Separations
2021 2021 2021

38,873 2,228 2,101

9,586 29,287 937 1,291 684 1,417

2020 2020 2020

38,756 2,103 1,833

9,337 29,419 748 1,355 542 1,291

Male Female Male Female Male Female

Leave Availments Employee Appraisal

Parental Leave (out of total availments)

16% 84%
100%
Return to Work Rate
(after Parental Leave)
99%
Over Total Eligible
2021 99% in 2020 Employees
16% 84%
0 100

99%
59%
2020 2021
Vacation Leave 2020 98%
94.65% 97.81% Female Senior Officers
2021

48%
94.87% 97.02%
2020
102-41
Sick Leave
78.25% 86.34%
Employees covered by 98% 2021
Collective Bargaining 97% 2020
2021
Agreement
67.15% 75.84%
2020 50% in 2020

Training & Development Employee Functions

Average Training Hours STEM-Related Revenue-Generating
Per Employee

39
2021
17.5
2020
355
842
11
128
24,021
5,726

By Gender
41
34 IT Engineering Sales
17.55

17.15
2020 2021

56
By Age Group
Employee Count New Hires Employee Separations

2021 2021 2021

14,708 21,543 2,622 1,293 905 30 931 944 226

<30 30-50 50> <30 30-50 50> <30 30-50 50>

2020 2020 2020

16,297 20,101 2,358 1,393 680 30 902 722 209

<30 30-50 50> <30 30-50 50> <30 30-50 50>

Employee Count by Location

Luzon Visayas Mindanao

30,568 3,680 4,526

2021 2021 2021

30,540 3,634 4,487

2020 2020 2020

Abroad

99 95
2021 2020

By Level
2021 Gender Diversity Average Training Hours Employee Appraisal
Male 2021 2021
2,876 39 99%
3,774 39 98%
2,213 40 99%
723 40 98%

Female 2020 2020 Rank and File

16,192 17.78 98% Junior Management: First line
managers or supervisors
8,125 16.81 98%
Middle Management: Managerial
3,944 18.07 99% roles below senior management
Senior Management: Executives
1,026 20.28 97% up to two levels from the Chief
Executive Officer (e.g. Senior Vice
President, First Vice President)

57
 The second year of the pandemic brought new challenges for the
BDO organization on top of already existing ones. But this period
also presented new opportunities that allowed the Bank to enhance
existing workplace policies and procedures in order to better provide
for employees’ needs, and at the same time promote workplace
effectiveness and efficiency.

Equal Opportunity Employer

BDO is committed to promote a work environment that fosters diversity,
equity, and inclusion, where everyone receives fair and equal treatment,
equal rights, and opportunities regardless of gender, ethnicity, race, age,
religion, sexual orientation, and disability, and are valued for their unique
contributions to BDO’s success.

The Bank ensures that employment practices and policies are in

compliance with labor laws, regulations, and standards in countries
where it operates. BDO seeks the best talents who are selected, engaged,
compensated, and promoted, as the case may be, based on merit

BDO Culture and Values

“We find ways” is at the heart of BDO’s culture of service, excellence, and
innovation. Our employees share and live up to our common C-O-R-E BDO is an equal opportunity employer
and values employees’ unique
values as BDO bankers. contributions to the Bank’s success.

Customer-Focused. Everything each BDO banker does is in the service

of the customer’s financial objectives and interests. This redefines the
Bank’s role beyond simply providing financial services, to a driver of
financial inclusion. The Bank reaches out to current clients and the large
number of unbanked and underserved Filipinos, and partners with them
to fulfill their aspirations toward a more sustainable financial future.

Out-of-the-Box Thinking. Every BDO banker is encouraged to challenge

conventional banking practices, beliefs, and processes for a better way
to achieve client’s objectives, without compromising quality, ethics,
or good governance. As the country’s largest bank, innovation and
ideation are born out of the Bank’s drive to think differently and from
diverse perspectives.

Right Attitude. All BDO bankers are encouraged to go the extra mile
to meet the client’s objectives. This is demonstrated in every BDO
banker’s commitment to excellent customer service and strong
customer relationships. Incorporated in BDO’s human resource trainings
is the development of values such as integrity, team spirit, hard work,
and service. Complementing BDO’s commitment to build long term
relationships with customers is the bank’s efficient business processes
and user-friendly digital tools.

Excellent Execution. As the largest full-service financial institution in the

Philippines, BDO is committed to doing it right, on time, and according to
expectations each and every day.

58
Employee Safety and Well-being
BDO is committed to ensuring the physical, social, and mental well-being
of its more than 38,000 employees in the Philippines and abroad, and
97%
BDO Employees
prioritizing occupational health and safety at all times. The Bank abides
Vaccination Rate
by the general labor standards and the occupational health and safety
standards, in all the countries where it operates.

BDO’s Health & Safety Committee is composed of Senior Management

Team members from Premises and Facilities Management, Security
& Investigation Division, Human Resources, Branch Banking Group,
Consumer Banking Group, and the bank employees’ labor union. The
Health & Safety Committee manages and drives the Health & Safety
Program of the Bank. Documents of the Committee activities are
submitted on a regular basis to the DOLE, which in turn, audits the Bank
with the same regularity.

The COVID-19 pandemic continued to be the greatest challenge to

BDO bankers’ health and safety, as the pandemic entered its second
year in 2021. The Bank’s mandate remained clear: mitigate the rising
number of COVID-19 infections nationwide as it impacts employees, and
within the Bank, achieve herd immunity with at least 70% vaccination
among employees.

To address this critical task, the Human Resources (HR) Group provided
continuous HR services that made sure employees had access to
necessary healthcare, particularly amid the surge of the COVID-19
Delta variant. Employee safety was reinforced and maintained through
(1) regular and more frequent antigen testing and PCR-testing; (2) contact
tracing of affected employees; (3) quarantine and isolation monitoring;
(4) health care assistance; (5) additional leave benefits; and (6) financial
assistance. The Bank also distributed COVID-19 health kits among
employees, and set-up additional PCR testing sites nearer to branches
and offices. These efforts effectively identified emerging cases among
employee clusters and helped mitigate spread through immediate
quarantine and isolation.

In terms of vaccination, the biggest challenge was to convince

employees to get inoculated, given varying levels of anxiety on the safety,
effectiveness, and side effects of various vaccines made available in the
country. HR collaborated with concerned business groups within BDO and
the SM HR Group in the roll-out of an Employee Vaccination Program that
would allow employees and bank custodials throughout the country to
have access to COVID-19 vaccines. BDO partnered with local government
units and with SM Malls that served as vaccination venues, to facilitate
employee vaccination for two vaccine doses and a first booster towards
the end of the year. The Vaccination Program was also promoted through
widespread dissemination of health advisories, active monitoring of
unvaccinated employees in different business units, and management
encouragement during team meetings. Employees were also allowed to
go on leave if their vaccination appointment fell on a workday. By the end
of 2021, all these efforts resulted in a 97% vaccination rate for the Bank’s
total population, exceeding its initial target of 70%.

59
 In the 4th quarter of 2021, the Vaccine Program was extended to employee dependents,
both adults and minors. Employees were also allowed to donate vaccines to their
preferred beneficiaries through BDO Foundation. By December 2021, booster vaccination
was implemented for BDO senior employees and those with co-morbidities, following
government guidelines on priority groups.

A major component of the Bank’s COVID-19 response was also providing the following
additional accommodations for employees;

Additional sick leaves for COVID-19 quarantine / isolation

Official business leave for vaccination day
Official business leave for those who had close contact with a positive case, while
waiting for test results
Flexibility to work from home based on the employee’s role and business units’
function,
Rotational Team A and Team B reporting on site
Split of critical teams into dual reporting sites

All these efforts made BDO bankers feel safe and well-protected in the workplace and
at home, given the extended vaccine coverage for their family members. Employee
attendance improved overall and employees learned to adjust their work load capacity
to continue to deliver services, in situations where a skeletal workforce had to be
enforced due to quarantine requirements. Employees also showed willingness to go the
extra mile in ensuring that critical activities in their respective teams were prioritized.

Having peace of mind helped employees maintain their productivity and effectively
allowed continuous delivery of essential services to customers and clients, even
with limited manpower capacity and changing pandemic policies mandated by
the government.

Employee Rights 102-41

The pandemic presented a unique set of challenges and opportunities for BDO’s Labor
Union. In 2021, a new set of officers was elected to represent employee members in
the Labor Management Council. Much of the Council’s work focused on employee
health and safety, as the country entered a different phase of the pandemic marked by
the prolonged Delta surge. Communication lines were strengthened and discussions
were made more open as Management and the Union worked hand-in-hand to protect
employees and maintain industrial peace and harmony at the Bank, while meeting its
commitment to the public to deliver essential services.

Employee Training and Development

Among the changes that became necessary as a result of the pandemic was shifting
from face-to-face into virtual training. Despite social distancing restrictions, employees
are enabled to pursue continuous learning through online courses and virtual
instructor-led classroom trainings. One of the urgent needs was to develop virtual
learning courses that supported sales and marketing efforts, through virtual selling and
virtual targeted communication to customers.

The Bank also pursued blended learning opportunities where virtual learnings were
complemented with manager coaching and hands-on training for new hires. This
approach strengthened team relationships and facilitated knowledge transfer more
efficiently.

60
Throughout 2021, the Bank continued to offer online courses related to Regulatory/
Mandatory topics, Products and Services, Systems and Processes, Soft Skills, and
Development Programs. Mandatory courses include the Code of Business Ethics and
Conduct, Anti-Money Laundering Act, Data Privacy Fundamentals, Operational Risk
Management, Business Continuity, Anti-Sexual Harassment in the Workplace, Social
Media Awareness, and Social Engineering Attack.

HR also continued to drive the Bank’s flagship leadership development programs —

the Officership Development Program (ODP) and Management Development Program
(MDP) — with all classes held virtually. The MDP equips leaders with skills to develop
high potential employees to take on managerial roles and enhances the productivity
of their teams. The ODP is a full-time training program that aims to equip aspiring
junior officers with the technical knowledge, as well as leadership, communication, and
customer service skills in performing their new role as Junior Assistant Managers in
the Bank. It enables individual contributors to develop the mindset and behaviors of a
leader. In 2021, a total of 416 employees participated in the MDP compared to 215 the
previous year, while 419 trained for the ODP in 2021, compared to 214 in 2020. Passing
these leadership programs is one of several criteria that makes an employee eligible
for promotion.

On the other hand, business skills training courses effectively equip employee learners
with updates on products, services, systems and processes, while consultative selling
workshops enable client-facing learners to offer clients with the appropriate financial
solutions they need. Leadership workshops continue to focus on coaching and
communication. Overall, these courses enable employees to effectively perform their
respective roles in supporting the business and responding to customer’s needs in the
context of “We Find Ways,” particularly during challenging business conditions, such as
the ongoing pandemic.

In 2021, HR-Training also created a series of eLearning courses on Sustainability at BDO

for employees bank-wide. Sustainability Consciousness 101 was designed for onboarding
new employees and officers, Sustainability 102 was for all incumbent employees,
while Sustainability 103 was tailor-fit for people managers who are expected to be
role models and to promote the sustainability mindset among teams they manage.
All courses provide an overview of BDO’s sustainability philosophy and framework,
current initiatives based on the latest BDO Sustainability Report, and expectations for
BDO bankers in collectively driving sustainability in the work they do at the Bank and
as individuals at home or anywhere outside the Bank. These courses will be rolled out
in 2022.

Digitization
In line with the digital transformation that was made more urgent by the pandemic,
HR fast-tracked the transformation of its processes and systems of core HR functions
into one integrated digital system to standardize and improve efficiency. HR migration
and implementation of the employee data management system was successfully
conducted in July 2021. Other core HR functions on Recruitment and Performance
Management are next in line for digitization and targeted for release in the new HR
System in 2022.

All these accomplishments and strides in 2021 have made BDO more resilient and
responsive to the needs of both its employees and clients. The Bank is now poised to
transition to the next normal with a strong foundation to continue finding ways to make
life better for all its stakeholders.

61
 BDO Green Champions at work
and at home 102-43
At BDO, sustainability begins at home, literally and figuratively. While the
Bank ensured that sustainability is an integral part of its business, it also
made sure that employees, who are BDO’s main brand ambassadors,
adopted and practiced the same sustainable mindset.

The Bank continuously promoted its initiatives through various internal

communication channels, including its employee newsletter, The
Wayfinder, and an emailer called eNewsgram. It also enjoined employees
to share their own sustainability initiatives so colleagues can draw
inspiration from them.

In sharing their own journeys, BDO also encouraged everyone to

participate in the SM Green Movement, an environmental project led
by BDO’s parent company, SM Investments Corporation. The SM Green
Movement aims to lessen the SM Group’s carbon footprint by promoting
a greener lifestyle at home and at work among employees of the Group.

Launched in 2019, the SM Green Movement showcases how each

company within the SM Group contributes to sustainability. More
importantly, it also serves as a platform for employees to share their own
green practices with everyone across SM’s ecosystem. BDO bankers are the Bank’s brand
ambassadors in adopting and
practicing a sustainability mindset.
In 2021, BDO bankers got to know more about their own sustainability
advocates — the BDO Green Champions. Among them are Sharlene
May Cua and Tonette Amistoso of the Institutional Banking Group; June
Abigail Josue and Chiqui On of the Consumer Banking Group; Mark Rhyan
Montenegro of Comptrollership; and Francis Tumpag and Renan Ferrer of
the Branch Banking Group.

It’s the little things that matter the most. Through their own small but
meaningful actions, the BDO Green Champions are able to contribute to a
greener, more sustainable world for future generations. Here, in their own
words, are some of their green practices:

Sharlene May Cua

China Desk, Institutional Banking Group

“Fostering sustainability may be a huge task, but starting it in our own

little way makes it a lot easier. Not long ago, the topic of renewable
energy and energy efficiency piqued my interest. That’s when I started
to participate in trainings and capacity-buildings tackling these topics.
Listening to experts not only enhanced my knowledge on renewable
energy and efficiency, but also allowed me to share my learnings
with others.

Since we are also spending more time at home because of the

pandemic, I became more conscious about the energy that I consume. I
began to explore energy-saving smart appliances and made sure I have
efficient cooling and lighting at home. In my own little way, I’m able to
lessen our country’s carbon footprint.”

62
 Renan Ferrer
BDO Aklan – CityMall Branch, Branch Banking Group

“In our home, I started a green living project by planting flowering

trees and fruit-bearing trees such as Palawan Cherry Blossom,
rambutan, santol, jack fruit, and a lot of ornamental plants. My
other siblings also embrace the idea by growing organic backyard
vegetables such as pechay, siling labuyo, okra, eggplant, patola,
squash, calamansi, cucumber, and string beans for our family’s
consumption. We also sell our excess harvest in the market.
The concept of farm-to-table has been a practice in most
neighborhoods in our province. The idea of helping others and being
a responsible individual for the benefit of the community and the
environment is an efficient way of living sustainably and peacefully.”

June Abigail Josue

Service Fulfillment Unit, Consumer Banking Group

“I have been donating plastic materials to The Plastic Flamingo

(www.theplaf.com), a social enterprise that aims to tackle marine
plastic pollution in the country. They transform collected plastics
into eco-lumbers: posts and planks. Since I discovered that group,
I have been consciously avoiding buying grocery products made of
plastic materials.”

Chiqui On
Collections Assurance, Reporting and Testing,
Consumer Banking Group

“I am fostering sustainability by minimizing use of paper and plastic

in my daily work and personal activities. I avoid printing reports
if these can be submitted digitally. I also bring and use my own
tumbler and utensils when buying takeout.”

Mark Rhyan Montenegro

Loans Administration, Comptrollership

“At work, I re-utilize used papers by printing on the clean side. It

helps the Bank save on cost. Also, I manually shred used papers/
forms to save on electricity cost. At home, we use rain water to
clean our toilets and water our plants. This practice has helped us
save on water costs. We also use solar equipment to charge multiple
devices instead of plugging them into electrical sockets.”

63
 Tonette Amistoso
Commercial Banks, Institutional Banking Group

“We all know that climate change, global warming, and resource
depletion are real and their impact on human and other living things
can be devastating. It’s high time that we grab any opportunity
to help reduce our carbon footprint. As a minimalist, I make sure
that everything I own and use are put to its maximum purpose. I
am more mindful of the products that I buy, making sure that they
are, as much as possible, recyclable. I try to repurpose most of the
things that I buy so I am able to minimize our household’s waste. I
always bring a reusable shopping bag whenever I visit the grocery.”

Francis Tumpag
BDO Cebu Mandaue – North Branch, Branch Banking Group

“My household is practicing the 3 Rs (Reduce, Reuse, Recycle) to

foster sustainability and protect the environment. To reduce waste,
we buy only what is needed and select items with less packaging.
Using eco bags while shopping at SM stores and other supermarkets
allows me to use less packaging as well. We also repurpose used
glass bottles as containers for staples like vinegar, soy sauce, salt,
sugar, and we convert PET bottles into pots for our plants. We are
also able to conserve water and other resources by ensuring that we
fix leaking water pipes, managing the use of our LPG, and turning off
electronic appliances when not in use, among others.”

Some of the BDO Green Champions are also featured in the SM Green Movement website. To view the video interviews with
Tonette Amistoso, Sharlene May Cua, Mark Rhyan Montenegro, Francis Tumpag, and other sustainability advocates of the SM
Group, visit this link: www.smgreenmovement.com/our-green-champions/.

64
Disaster Response
Sustainability Strategy

In identifying Disaster Response as one of its key

sustainability strategies, BDO takes into consideration the
physical risks that come with the geographical location
of the Philippines that makes it vulnerable to climate
change. Disasters critically impact the safety and well-
being of our employees, customers, and communities,
and pose disruption and damage to the bank’s operations
and facilities.

To best mitigate the environmental and social impact

of natural and man-made disasters, the Bank chose to
focus its resources on the aftermath of such events — to
immediately provide relief, fund rehabilitation, and help
advance recovery of disaster-stricken communities in the
Philippines. This supports the United Nations Sustainable
Development Goal 13 on Climate Action — to strengthen
resilience and adaptive capacity to climate-related hazards
and natural disasters in all countries.

65
 BDO Foundation: Finding ways to
serve the Filipino
As the coronavirus lingered and variants threatened the
well-being of Filipinos, BDO Foundation, the corporate social
responsibility arm of BDO Unibank, continued to find ways to
make its disaster response programs more responsive to the
needs of underserved sectors of society.

Pandemic response
In the second year of the pandemic, BDO Foundation
continued to help control the spread of the virus, assist
frontliners, and provide aid for people vulnerable to the effects
of the health crisis. The Foundation helped communities cope
with COVID-19 amid the surge in cases by supporting the
healthcare programs of partner local government units.
BDO Foundation has donated vaccines for
BDO Foundation’s pandemic response included the following: frontliners in key cities with the highest
COVID-19 cases.
Distribution of food assistance in marginalized communities
all over the country in partnership with Ako Bakwit,
Caritas Philippines, Tanging Yaman Foundation, and social
action centers
Donation of hygiene kits to health workers and patients in
Capiz, Iloilo, and Negros Oriental provinces
Provision of manpower support — nurses and medical
technicians — for the vaccine rollout of General Santos City
and Iloilo City to mitigate the surge in cases due to the Delta
variant of the COVID-19 virus

Relief Operations COVID-19 Pandemic Response

Served more than Served

49,000
calamity-stricken families
16,750
families
2,055
health workers
1,800
vaccinees
and patients

66
 Contribution to the Project Balik Buhay Salary and Bonus
Assistance for our Bidas program, which provided financial
incentives to nurses stationed in the intensive care units,
emergency rooms, and COVID wards of hospitals in Cebu, an
initiative supported by the Department of Health and Office
of the Presidential Assistant for the Visayas
Vaccination of beneficiaries nominated by vaccine donors
from BDO
BDO Foundation’s COVID-19 programs benefited 16,750
families, 2,055 health workers and patients, 1,800 vaccinees
in General Santos and Iloilo, nurses in eight hospitals, and
1,066 vaccinees nominated by donors as well as people in 30
parishes and persons deprived of liberty in 48 prisons. The
initiatives were backed by BDO Unibank and BDO Network
Bank branches, local government units, medical organizations,
hospitals, non-governmental organizations, and volunteers
who provided logistical assistance on the ground.

Relief operations
BDO Foundation provided food assistance to
In line with its disaster response advocacy and in the spirit of non-governmental organization Ako Bakwit for
bayanihan or volunteerism, BDO Foundation provided relief aid the benefit of economically disadvantaged and
displaced persons affected by the pandemic.
and mobilized volunteers for provinces placed under a state
of calamity due to typhoons, earthquakes, volcanic eruptions,
and fires.

The initiative benefited more than 49,000 calamity-stricken

families devastated by Typhoons Bising (international name:
Surigae), Fabian (Cempaka), Maring (Kompasu), and Odette
(Rai), as well as survivors of a fire incident in Occidental
Mindoro and the Taal Volcano eruptions.

Handog sa 'Yo ng Rural Health Units (RHUs) Tech-Voc

BDO Foundation Training Facility
Food Assistance 21
Rehabilitated RHUs
Helped improve delivery
of primary patient care
to more than
More than
Distributed food packs to
in the provinces
700,000 140
20,000 students stand to
underserved families in 10 individuals benefit every year

121
25 provinces Previously rehabilitated RHUs,
maintained and repaired
Renovated RHUs
to date

67
 The relief work was made possible with the support of BDO and
BDO Network Bank branches. Volunteers from church groups,
the military, local government units, and non-governmental
organizations provided logistical support.

Handog sa ‘Yo ng BDO Foundation

BDO Foundation provided food assistance for economically
disadvantaged communities all over the country as part of a
Christmas gift-giving initiative dubbed Handog sa ’Yo ng BDO
Foundation. In partnership with Caritas Philippines, the social arm
of the Philippine Catholic Church, the Foundation distributed food
packs to 20,000 underserved families in 25 provinces in Luzon, the
Visayas, and Mindanao. Volunteers prepare to distribute food
packs to underserved families in
Handog sa ’Yo was aimed at giving back to the community during Zambales as part of the Handog sa ‘Yo
ng BDO Foundation Christmas gift-
the holiday season and supplementing the food supply of families
giving program.
during hard times. Implementation was made possible with the
support of parishes and diocesan social action centers as well as
BDO and BDO Network Bank branches.

Rehabilitation and upkeep of

Rural Health Units
BDO Foundation intensified efforts to rehabilitate rural health units
(RHUs) in economically disadvantaged and disaster-affected areas
all over the Philippines to facilitate access to quality healthcare
services during the pandemic. Despite logistical limitations caused
by COVID-19, the Foundation renovated 21 RHUs in the provinces of
Batangas, Bohol, Catanduanes, Ilocos Sur, Iloilo, Isabela, Masbate,
Negros Occidental, Samar, and Surigao del Norte.

BDO Foundation improved the health centers’ layout, interiors

and exteriors, lobbies and waiting areas, offices, birthing clinics,
consultation rooms and treatment rooms, pharmacies, and
facilities. The Foundation also installed new furniture and fixtures
to accommodate more patients. Construction also included
breastfeeding stations for nursing mothers, play areas with books
and toys for children, and comfortable waiting lounges for senior
citizens. With renovations completed, rural doctors, nurses, and
midwives are now better equipped to provide primary patient care
to more than 700,000 individuals, many of whom cannot afford to
go to hospitals.

In addition to the rehabilitation of RHUs, BDO Foundation

also completed the maintenance and repair of 10 previously
rehabilitated health centers in Agusan del Sur, Aklan, Biliran,
Camarines Sur, Ilocos Sur, North Cotabato, Nueva Ecija, Samar, and
Sorsogon provinces for the benefit of more than 560,000 people.
According to Dr. Rachelle Jean Sanchez,
Officers from BDO Unibank and BDO Network Bank branches municipal health officer of Placer
helped the Foundation identify RHUs that needed assistance. in Surigao del Norte, “On behalf of
Placernons, I would like to express our
Through its rehabilitation program, the Foundation contributes to gratitude to BDO Foundation for finding
ways for us amid this pandemic.”
the achievement of Sustainable Development Goal 3 to ensure
healthy lives and promote the well-being of all people at all

68
ages. As a pandemic response, the initiative is critical as RHUs support
efforts to curb the spread of the coronavirus. Health centers provide
free antigen testing and implement the vaccination programs of local
government units.

Construction of Tech-Voc Training Facility

BDO Foundation continued to look after the welfare of disaster-affected
Filipinos long after the typhoons have gone. Dumangas town in Iloilo
province was hard hit by Super Typhoon Yolanda (Haiyan) in 2013. To
help rebuild the community, the Foundation constructed a technical-
vocational training facility at the Don Bosco Technical and Vocational
Education and Training Center – Dumangas, in partnership with the
Salesian Society of St. John Bosco.

The two-storey structure serves as a workshop, where senior high school

students can learn technical-vocational livelihood skills. The building
enables administrators to introduce new courses, accommodate more
enrollees, and teach more learners.

It supports Don Bosco’s mission to educate, evangelize, and capacitate

BDO Foundation built a technical-
Filipino youth. The Center educates economically disadvantaged and out- vocational training facility in Dumangas,
of-school youth for gainful employment in the Philippines and abroad. Iloilo to support Don Bosco’s efforts
More than 140 students stand to benefit every year from the facility the to educate disadvantaged youth in
the Visayas.
Foundation built.

BDO Foundation’s initiative in Iloilo contributes to the achievement of

Sustainable Development Goal 8 to promote sustained, inclusive, and
sustainable economic growth, full and productive employment, and
decent work for all.

Other projects
Distribution of food assistance to more than 2,200 underserved
families in Aklan, Capiz, Cebu, Davao del Sur, Iloilo, Leyte, Metro Manila,
Pangasinan, Rizal, and Samar in partnership with BDO Network Bank,
Beiersdorf Philippines, Jesuit Communications Foundation, and U.S.-
Philippines Society
Donation of more than 1,400 healthcare products and other items to
Ako ang Saklay Foundation for underserved families in Nueva Ecija
Sponsorship of the sixth general assembly of Zero Extreme Poverty
Philippines 2030 themed “Creating a Better Normal Towards Sustainable
Communities”, which served as a venue for discussions of efforts to
address the effects of the pandemic

69
 Governance-based
Sustainability Strategy

We continuously enhance our corporate governance

framework to sustain superior business performance
anchored on the principles of accountability, transparency,
integrity, and fairness, together with our partners.

70
Good Governance to Create a
Sustainable Future
Corporate governance in BDO is about effective oversight, strict compliance with
regulations, and sustainable value creation to promote the best interest of its
various stakeholders.

BDO affirms its deep commitment to the highest standards of corporate governance
practice firmly anchored on the principles of accountability, fairness, integrity,
transparency, and performance consistently applied throughout the institution. BDO’s
good market reputation has been built on the solid foundation of an ethical corporate
culture and responsible business conduct, underpinned by a well-structured and
effective system of governance.

BDO complies, where appropriate, with the Philippine Securities & Exchange
Commission (SEC) Code of Corporate Governance for Publicly-Listed Companies and
with the Enhanced Corporate Governance Guidelines for BSP-Supervised Financial
Institutions. It follows relevant international best practices of corporate governance
issued by globally recognized standards-setting bodies such as the Organization for
Economic Cooperation and Development (OECD) and the ASEAN Corporate Governance
Scorecard (ACGS) which serve as essential points of reference.

Our Board of Directors and

Governance Structure
Responsibility for good governance lies with the Board. It is responsible for providing
effective leadership and overall direction to foster the long-term success of the Bank. It
oversees the business affairs of the Bank, reviews the strategic plans and performance
targets, financial plans and budgets, key operational initiatives, capital expenditures,
acquisitions and divestments, annual and interim financial statements, and corporate
governance practices. It oversees management performance, the enterprise risk
management, internal control systems, financial reporting and compliance, related
party transactions, continuing director education, and succession plans for the Board
and the Chief Executive Officer (CEO). It considers sustainability issues related to the
environment and social factors as part of its sustainable banking practices.

The Board is composed of 11 seats, with one vacancy as of December 31, 2021 reserved
for an independent director1. The members of the Board are all professionals with
various expertise in fields relevant to BDO’s business and strategic plans such as
banking, accounting and finance, law, merchandise marketing, strategy formulation,
bank regulations, information technology, sustainability, and risk management. It
is led by a Non-Executive Chairperson with five Independent Directors, three Non-
Executive Directors, and two Executive Directors who are the Vice Chairman and the
President & CEO.

The present composition of the Board exceeds the minimum regulatory standards
which require that independent and non-executive directors account for the majority.
Independent and Non-Executive Directors of the Bank comprise 82% (nine of 11) of
the Board. With five of 11 Board seats allocated for independent directors, the Bank
goes beyond the 1/3 minimum requirement of the Bangko Sentral ng Pilipinas and the
Securities and Exchange Commission. Independent Directors comprised the majority

1
Atty. Gilberto C. Teodoro, Jr., Independent Director, resigned from the Board of Directors effective October 7, 2021. His
replacement, Mr. Vipul Bhagat, Independent Director, was appointed by the Board of Directors on January 8, 2022.

71
 (six of 11 or 54.50%) of the Board until April 20212, conforming Board snapshot
with international best practices. Independent directors chair
eight of nine Board Committees, namely Risk Management,
Audit, Corporate Governance, Related Party Transactions, IT DIRECTOR INDEPENDENCE
Steering, Nominations, Compensation, and Trust. This provides 2 Executive Directors
independent and objective judgment on significant corporate
matters and ensures that key issues and strategies are objectively
5 Independent Directors
reviewed, constructively challenged, thoroughly discussed and
rigorously examined.
4 Non-Executive Directors
The Board is aided by four advisors who are considered as integral
parts of the Board and whose influence are akin to directors.
Their opinions and recommendations are taken into consideration
by the Board members. The presence of a female Board advisor DIRECTOR DIVERSITY
provides an independent view of the Bank and complements the
2 Females
two female non-executive directors.

The Board is responsible for the screening of new directors 2 International

through the Nominations Committee. The Nominations
Committee leads the process of identifying and evaluating the
nominees for directors. It evaluates the balance, skills, knowledge
and experience of the existing Board and the requirements of the DIRECTOR AGE
Bank. The result of the evaluation determines the role and key
attributes an incoming director should have. The Nominations 1 50-59

Committee receives recommendations for potential candidates

and uses, to the extent possible, external search firms or external 3 60-69
databases in selecting the pool of candidates for the new
members of the Board. The Nominations Committee recommends
7 70+
the most suitable candidate to the Board for appointment or
election as director.

For reelection of incumbent directors, the Nominations

SKILLS, EXPERIENCE &
Committee also considers the results of the most recent annual
BACKGROUND
evaluation of the performance of the Board, Board Committees,
and peer evaluation made by the Board members and advisors 7 Bankers
or by an independent third party evaluator, attendance record in
meetings, participation in Board activities and overall contribution
2 Lawyers
to the functioning of the Board.

In evaluating the suitability of an individual board member 2 Entrepreneurs

and promoting diversity in the composition of the Board, the
Nominations Committee annually reviews the Board and Board
Committee composition to ensure appropriate balance of skills,
competencies, experience of its members, and diversity to
ensure the alignment with the new regulations. The Committee
recommends to the Board of Directors the slate of nominees
for election to the Board of Directors during the Bank’s annual
stockholders’ meeting. The Committee takes into account the
relevant qualifications of every candidate nominated for election,
with competence and integrity as the primary factors, including
other criteria such as, among others, physical and mental fitness,

2
Former Lead Independent Director, Mr. Jones M. Castro, Jr., was reclassified to non-executive director on April 23, 2021, in
order to comply with the nine-year term limit for independent directors.

72
relevant educational and professional background, personal track record, experience
and training, commitment to contribute, willingness to serve, and interest to remain
engaged and involved, without regard to race, gender, ethnic origin, religion, age, or
sexual orientation.

The Board is also responsible for approving the selection and appointment of a
competent executive management led by the President and CEO including the heads
of units who exercise control functions i.e. Chief Compliance Officer, Chief Risk Officer,
and Chief Internal Auditor. Fit and proper standards are applied in the selection of key
officers and utmost consideration is given to their integrity, technical expertise, and
banking industry experience.

Considering the changes done, complexity and scope of the Bank’s business, the Board
believes that its current size and composition provide sufficient diversity among its
directors, foster critical discussion, and promote balanced decision-making. It views
diversity at the Board level, which includes differences in skills, experience, gender,
sexual orientation or preference, age, education, race, business and other related
experience, as an essential element in maintaining an effective board for strong
corporate governance.

During the year, the Board approved, reviewed, and oversaw the Bank’s financial budget
and capital funding, business targets and strategies, quarterly declaration of dividends,
and the release of the 2020 audited financial statements within 57 days from year end.
Its oversight functions include the review of operational and financial performance
of senior management and work of the various committees in accordance with their
Terms of Reference.

In 2021, the Board focused on the Bank’s strategic plans. Six special Board meetings
were called in 2021 to specifically discuss the Bank’s strategies for an enhanced
customer journey, seamless digital transformation, effective wealth management
initiatives, and robust cyber security measures. The Board approved and confirmed
the expanded business model of its overseas branch to include dealing and offering of
securities and collective investment schemes, and providing custodial services.

The Board continued with its efforts in countering the effects of COVID-19 pandemic in
its operations. Constant monitoring of the adequacy of the Bank’s provision was made
at Board level in 2021. Similarly, the Board kept track of the Bank’s COVID-19 response
programs, particularly the regular testing and vaccination of its employees.

The Board also oversaw matters related with sustainability. It approved a three-year
transition plan aimed at embedding sustainability principles in the Bank’s corporate
governance framework, risk management systems, strategic objectives, and operations.

73
 Improving Board Effectiveness
Board Performance
A yearly self-assessment is conducted focusing on the performance of the Board,
directors, Committees and senior management, through the Corporate Governance
Committee, using an approved set of questionnaires. The performance evaluation
process begins with sending out customized Board Evaluation Questionnaires to each
director and advisor. They are required to complete the questionnaire and explain the
rationale of their response. The results of which are tabulated and consolidated. In
2021, the Corporate Governance Committee endorsed to the Board the continuous
engagement of the services of an external facilitator for its yearly self-assessment. To
the Committee, engaging an independent party every year, rather than every three years
as recommended by the SEC, provides more governance inputs to the Board and allows
comparability and continuity of aspects examined.

For 2021, the Bank reappointed PwC Philippines (PwC) as external facilitator for the 2021
Board Effectiveness Evaluation (BEE) as continuation of being the external facilitator
for the 2019 and 2020 BEE. PwC facilitated a peer and self-evaluation process on the
Board, Board Committees, and individual directors.

Continuing Education for Directors

The continuing education program for directors is an ongoing process to ensure the
enhancement of their skills and knowledge. Every year, all directors and key officers
are given updates and briefings, and are required to attend a corporate governance
seminar on appropriate topics to ensure that they are continuously informed of
the developments in the business and regulatory environments, including emerging
opportunities and risks in the banking industry. All directors of BDO Unibank complied
with the annual corporate governance training requirement of four hours in 2021.
Nine directors of BDO Unibank attended the in-house corporate governance seminar
facilitated by Gartner Executive Programs last September 1, 2021. It concentrated on the
impact of geopolitics on digital business, design and delivery for customer facing digital
products, and digital leadership. Two directors attended the corporate governance
seminar facilitated by the Institute of Corporate Directors last September 30, 2021 with
topics on sustainability, artificial intelligence, and digitalization, among others.

Chairperson of the Board

The Chairperson is primarily responsible for leading the Board and ensuring its
effectiveness. She provides leadership to the Board, fosters constructive relationships
between directors, promotes an open environment for critical discussions and
constructive debate on key issues and strategic matters, and ensures that the Board
of Directors exercises strong oversight over the Bank’s business and performance
of senior management. She takes a lead role in ensuring that the Board provides
effective governance of the Bank and continues to operate at a very high standard of
independence with the full support of the directors.

74
Independent and Non-Executive Directors’ Meeting
A regular meeting is held by Independent and Non-Executive Directors (INED) with
the heads of the control functions (i.e. Chief Risk Officer, Chief Compliance Officer,
and Chief Internal Auditor) as well as the external auditor, without the presence of
management or any bank executive, to discuss various matters or issues outside the
Audit Committee and Risk Management Committee meetings. The meeting is chaired
by the Lead Independent Director. In 2021, the INED conducted three (3) sessions and
the results of these sessions were discussed with the Bank’s Executive Directors in
three (3) separate sessions.

Board Committees
The Board has established nine committees to help in discharging its duties and
responsibilities. These committees derive their authority from and report directly to
the Board. Their mandates and scopes of responsibility are set forth in their respective
Terms of Reference, which are subjected to annual review and may be updated or
changed in order to meet the Board’s needs or for regulatory compliance. The number
and membership composition of committees may be increased or decreased by
the Board as it deems appropriate, consistent with applicable laws or regulations
specifically on the majority membership and chairmanship of independent directors in
various committees. As of December 31, 2021, eight of nine board-level committees are
chaired by Independent Directors.

75
 The Board of Directors
Responsibility for good governance lies with the Board.

It is responsible for providing effective leadership and overall direction to foster the long-term
success of the Bank.

It oversees the business affairs of the Bank, reviews the strategic plans and performance targets,
financial plans and budgets, key operational initiatives, capital expenditures, acquisitions and
divestments, annual and interim financial statements, and corporate governance practices.

It oversees management performance, the enterprise risk management, internal control systems,
financial reporting and compliance, related party transactions, continuing director education, and
succession plans for the Board and CEO.

It considers sustainability issues related to the environment and social factors as part of its
sustainable banking practices.

Executive Committee Board Audit Committee

Exercises power of the Oversees the financial reporting process, system of internal
Board in the management control and risk management systems, internal and external
and direction of the affairs audit functions, and compliance with governance policies,
of the Bank. applicable laws and regulations.
Acts as main approving body Reviews the integrity of the reporting process to ensure
for loans, credits, advances the accuracy and reliability of financial statements and
or commitments and compliance with financial reporting standards and disclosure
property-related proposals. requirements set for publicly-listed companies.
Reviews and recommends Monitors and evaluates the adequacy, soundness and
for Board approval major effectiveness of the Bank’s established internal control and
credit policies, including risk management systems, policies and procedures including
delegation of credit implementation across all units of the Bank.
approval limits.

Corporate Governance Committee Trust Committee

Assists the Board in formulating the Reviews and approves transactions between trust
governance policies and overseeing and/or fiduciary accounts, accepts and closes
the implementation of the governance trust and other fiduciary accounts, and approves
practices of the Bank as well as its the investment, reinvestment and disposition of
subsidiaries and affiliates. funds or property.
Conducts annual performance Evaluates trust and other fiduciary accounts at
evaluation of the Board of Directors, its least once a year.
committees, executive management, Reviews Trust and Investment Group’s overall
peer evaluation of directors, and performance, profile of funds and assets under
conducts a self-evaluation of its its management, industry position, and the risk
performance. management reports.
Oversees the continuing education Approves offering of new products and services,
program for directors and key officers establishment and renewal of lines and limits
and proposes relevant training with financial institutions, and investment outlets
for them. and counterparties.

76
 Risk Management Committee
Responsible for the oversight of the enterprise risk management program of the Bank.
Responsible for approving risk appetite levels, risk management policies, risk tolerance limits and
approves the appropriate strategies for managing and controlling risk exposures, including preventing
and/or minimizing impact of losses if risk becomes real.
Oversees the implementation and review of the risk management plan including the system of limits
of discretionary authority delegated by the Board of Directors to management under its purview and
ensures that immediate corrective actions when limits are breached.
Responsible for evaluating the continued relevance, comprehensiveness and effectiveness of the risk
management framework.
Works with the Audit Committee in certifying in the Annual Report the adequacy of the Bank’s internal
control and risk management systems and controls.

Nominations Committee Compensation

Leads process of identifying candidates for election and Committee
appointment of directors and all other positions requiring Provides oversight on
appointment of the Board of Directors, giving full consideration directors’ compensation
to succession planning and the leadership needs of the and remuneration of senior
Group. In particular, this process includes the profiling of the management and other
skills and competencies of the currently serving directors, key personnel, ensuring
the gaps in skills and competencies identified and the search that the compensation
for candidates who are aligned with the Bank’s directions to scheme is consistent
fill the gaps. It then makes appropriate recommendations to with the Bank’s culture
the Board. and strategy, effectively
Makes recommendations to the Board on the composition and aligned with prudent risk
chairmanship of the various committees. taking and commensurate
with corporate and
Reviews structure, size and composition of the Board, including
individual performance.
the balance of skills, knowledge and experience and the
independence of the non-executive Directors, and makes Ensures consistency of the
recommendations to Board with regard to any changes. compensation policies and
practices across the Group.

Information Technology Steering Committee Related Party Transactions

Provides oversight and governance over the Bank’s IT Committee
functions, including approvals of information technology- Assists the Board in its oversight
related policies and practices of the Bank and of the conduct of all Related
applicable guidelines. Party Transactions (RPTs) to
Informs the Board of both internal and external IT-related protect the interests of the Bank
developments and activities, potential challenges and and its stakeholders.
risks, progress vs. strategic objectives. Ensures proper disclosure of all
Approves and endorses to the Board IT-related best approved RPTs in accordance
practices, strategic plans, policies and procedures. with applicable legal and
regulatory requirements and
Responsible for understanding, managing and mitigating
confirmation by majority vote
technology risks that confront the Bank and its
at the Annual Stockholders’
subsidiaries, ensuring that the risks are properly managed
meeting of the Bank’s significant
and mitigated, and monitoring of IT performance
transactions with related parties.
including status of major IT projects and issues.

Further information regarding BDO’s Board and Committees can be found in the Annual Report
and at www.bdo.com.ph.

77
 Independent Control Functions
Compliance
BDO’s Compliance Group, through the Chief Compliance Officer (CCO), oversees
the design of the Bank’s compliance system and the overall compliance framework
executed through a Compliance Program, and promotes their effective implementation.
BDO Compliance Group reports to and is under the direct supervision of the Board
Audit Committee. It is responsible for overseeing, coordinating, monitoring and
ensuring compliance of the Bank with existing laws, rules and regulations through the
implementation of the overall compliance system and program in accordance with the
requirements of the BSP and other regulatory agencies, including but not limited to the
identification and control of compliance risks, prudential reporting obligations as well as
compliance training. BDO’s Compliance System forms the processes, people, policies
and other components that, as an integral unit, ultimately drive the Bank’s initiatives to
conform to industry laws, regulations and standards. In line with the Bank’s initiatives is
its commitment to ensure that activities of the Bank and its personnel are conducted
in accordance with all applicable banking laws and regulations and industry standards,
and this commitment to compliance serves to protect the Bank and its stakeholders.
BDO’s Compliance Group, as provided in its Charter, conducts independent compliance
tests and reports to the Board Audit Committee any significant compliance issues
or breaches.

The Anti-Money Laundering Department (AMLD) under the Compliance Group, together
with the Anti-Money Laundering Committee (AMLCom), focuses on the enforcement
of the Bank’s Anti-Money Laundering (AML) Counter-Terrorist Financing (CTF) Program,
and Combating Proliferation Financing (CPF), in accordance with the Anti-Money
Laundering Law as amended; Terrorism Financing Prevention and Suppression Act,
and Anti-Terrorism Act (ATA) and their respective Implementing Rules and Regulations
(IRRs). The Bank also adheres with BSP and Anti-Money Laundering Council (AMLC)
Rules, Regulations and Directives. The AML Program of the Bank is articulated in
the Bank’s Board- approved Money Laundering and Terrorist Financing Prevention
Program (MTPP) Manual, which covers AML/CTF/CPF policies and information such as:
(i) customer on-boarding, (ii) customer risk assessment and due diligence, (iii) handling
and monitoring of clients and their transactions, (iv)Covered and Suspicious reporting,
(v) record-keeping, (vi) AML/CTF training (vii) AML System and technology platforms,
and (vii) Institutional Risk Assessment. AMLD likewise oversees the investigation of
suspicious transactions under the auspices of the AMLCom that is comprised of select
key senior officers of the Bank.

The Compliance Group and its compliance program endeavors to protect the Bank’s
franchise, manage compliance risks and simultaneously supports the business
goals and growth of the institution by providing appropriate compliance insights and
regulatory guidance to safeguard the Bank and its stakeholders.

Internal Audit
The Internal Audit Function covers the entire Group including foreign and local
subsidiaries and offices. It adheres to the principles required by the ISPPIA (International
Standard for the Professional Practice of Internal Auditing), COSO Internal Control-
Integrated Framework, COBIT (Control Objectives for Information and Related
Technology), the Internal Audit Definition and Code of Ethics.

78
It provides assurance and a systematic, disciplined approach to evaluate and improve
effectiveness of risk management, internal control, and governance processes.
Upholding a commitment to integrity and accountability, Internal Audit provides value
to senior management and governing bodies as objective source of independent advice,
not only by promoting the professional development of its auditors but also by keeping
abreast of relevant changes in regulations and trends in technology.

Internal Audit reports to the Board of Directors through the Board Audit Committee
(parent bank and respective subsidiaries). It seeks BAC approval for the annual audit
plan, provides updates on accomplishments, reports results of audit conducted and
tracks resolution of audit findings. In its year-end closing report, Internal Audit attests
to the fulfillment of its mandated responsibilities and provides overall assurance on the
effectiveness of internal control, risk management and governance processes.

Compliance with the SEC Code

of Corporate Governance
Publicly-listed companies are advised to disclose in their Annual Report the company’s
compliance with the Code of Corporate Governance and where there is non-
compliance, to identify and explain the reason for such issue. We confirm that as of
December 31, 2021, the Bank has substantially complied with the recommendations of
the Code except for the following: 1) Policy on retirement age of directors; 2) Disclosure
of executive remuneration on an individual basis; 3) voting system for majority of
non-related party shareholders to approve material related party transactions during
shareholders meeting; 4) voting mechanism such as supermajority or “majority of
minority” to protect the minority shareholders against action of controlling shareholder.
For a more detailed discussion on the matter, please refer to the BDO Annual Report.

Corporate Policies and Practices

BDO Code of Conduct and Business Ethics
As a financial institution, BDO believes that practicing right conduct and ethical behavior
inspires and strengthens the confidence of all our stakeholders. The BDO Code of
Conduct and Business Ethics (the Code) outlines the principles and policies that govern
the activities of the Bank and sets forth the rules of conduct in the workplace and the
standards of behavior of its directors, officers and employees in their activities and
relationship with external stakeholders.

The Bank upholds the virtues of honesty and integrity among its employees and
instills a sense of commitment toward duty and responsibility. All employees are
expected to observe discipline in attending to their jobs and in interacting with co-
workers. Supervisors and managers are expected to foster self-discipline and serve
as role models to their subordinates. Bank officers are expected to intelligently and
consistently apply the accepted principles of people management. All cases/violations
must be reported. Failure to do so either by oversight or deliberate cover up is subject
to appropriate disciplinary action.

The Office of the Human Resources is responsible for overseeing the implementation
of this Code across the BDO Unibank Group. It receives reports of violations and
ensures that a confidential investigation is undertaken. As necessary, it may endorse
the handling of the investigation to the Cases Review Secretariat for the appropriate
action and recommendation. The Audit Committee, at its discretion, may periodically
report the Code of Conduct and Business Ethics cases to the Board of Directors. The
Compliance Office will address lapses in compliance with regulatory requirements
arising from the administrative cases due to the violation of this Code.
79
 Internal Fraud, Breach of the Code, or other
Unethical/Illegal Activities
BDO believes that the key to long-term sustainability and success largely depends on
having a good name and solid reputation in the industry. Any director or employee who
becomes aware of any violations of law, regulations, or policies should report the same
to appropriate authorities, with protection from reprisal and discrimination. Reporting of
violations should be done in good faith and without malice. This is embodied in the BDO
Policy of Disclosure of Sensitive/Confidential Matters to management that governs the
policies and procedures in the handling of whistleblower cases.

Data Privacy
BDO implements strict compliance with data privacy and protection laws. All
personal data, including sensitive and confidential information obtained in the course
of employment, directorship, engagement of services, or other work or business-
related relationships with BDO, shall not be divulged unless authorized in accordance
with internal and regulatory requirements, and shall not be used for any personal or
financial gain.

The Bank has in place a Data Privacy Management Program (DPMP), which serves as the
framework for protecting the data privacy rights of the Bank’s data subjects, to ensure
compliance with the Philippine Data Privacy Act (PDPA). BDO’s DPMP strives to comply
with the Five Pillars of Data Privacy Accountability and Compliance of the National
Privacy Commission.

1. Appointment of Data Privacy Officer. The Bank appointed a Data Protection Officer
(DPO) who is registered with the National Privacy Commission (NPC). Compliance
Officers for Privacy (COPs) in each business and support unit (BSU) were also
appointed to ensure proper coordination in the implementation of any initiatives
related to the Bank’s DPMP.
2. Conduct of Privacy Impact Assessment. The Bank completed a Privacy Impact
Assessment (PIA) for the whole BDO Group to assess privacy risks and ensure that
necessary security measures are in place that will mitigate risks to personal data,
and uphold the data privacy rights of individuals. The results of the PIA were reported
to the Risk Management Committee (RMC) of the BDO Board.
3. Privacy Management Program and Privacy Manual. The Bank’s DPMP is part of
its Data Privacy Manual (DPM), which serves as a framework for protecting the data
privacy rights of the Bank’s data subjects. The Bank codified its DPM to serve as a
reference for all units of the Bank in complying with Republic Act 10173, also known
as the Data Privacy Act of 2012. All bank personnel are required to comply with the
terms set out in the Manual.
4. Implement Data Privacy and Protection Measures. Even before the Data Privacy
Act was passed into law, data privacy and protection measures were already in place
in BDO’s processing of personal data. However, implementation of these measures
was not a one-time activity, but a continuous process. Foremost among these steps
are the establishment of the Enterprise Data Privacy Policy, Data Privacy Statement,
and Breach Reporting Procedures, including the templates for Consent, Data Sharing
Agreement, and Outsourcing Agreement Supplements. Privacy risk monitoring was
also enhanced using the existing operational risk management tools of the Bank.
To ensure continuous education within BDO, an eLearning course on Data Privacy is
sent to employees as part of an Awareness Program. The Bank has also intensified
its data privacy awareness with an in-depth training for COPs and complaints
management training for Customer Contact Center personnel.

80
5. Exercise of Breach Reporting Procedures. As a precaution and to proactively
manage personal data breach incidents, the Bank documented in its Data Privacy
Manual the detailed procedures in reporting potential personal data breaches. Breach
reporting is also included in the Bank’s Data Privacy Training and Awareness Program.

The RMC is also regularly updated with respect to the progress of the Bank’s
compliance to the PDPA. In view of its commitment to comply with data privacy
requirements, and as part of its continuing assessment and development efforts, the
Bank actively participates in data privacy forums of the NPC and liaises with other DPOs
of the Bankers Association of the Philippines (BAP).

Consumer Protection Practices

BDO’s financial consumer protection framework is anchored on disclosure and
transparency, protection of client information, fair treatment, effective recourse, and
financial education and awareness. The framework ensures that consumer protection
practices are embedded in our operations and considered in the development and
implementation of our products and services.

The Board is primarily responsible in maintaining an effective oversight on the Bank’s

consumer protection policies and programs. Senior management implements the
Board-approved strategy and ensures that control mechanisms are in place. BDO’s
Consumer Assistance Management System reflects the Bank’s commitment that
our customers are treated fairly, honestly, and professionally at all stages of their
relationship with the Bank. To ensure its effective implementation, BDO Customer
Contact Center records customer complaints and monitors its resolution in adherence
to established standard operating procedures and service level agreements. Customer
feedback and complaints are analyzed and these are reported to the Board’s Risk
Management Committee on a periodic basis.

BDO devotes resources to ensure that customers are provided with accessible,
affordable, independent, fair, accountable, timely, and efficient means for resolving
complaints with their financial transactions. In 2021, CAMS logged around 8 million
customer cases of which only 6% were problem-related in nature. Majority of the cases
were inquiries (5.2 million or 65%) and requests (2.3 million or 29%).

Supply Chain and Approach to Procurement

BDO sources 99.6% of its supplies from a local supply chain. The Bank follows a Manual
on General Procurement Guidelines that establishes the policies on procurement of
products and services and provides a framework of efficient, consistent, transparent
and compliant purchasing practices across all Business Units (BU) of the Bank. BDO
also has an online Vendor Accreditation System (VAS) that serves as the central
storage facility of all Bank accredited vendors/suppliers, and contractors. The VAS
provides real time status of vendor evaluation for accreditation, allows the upload of
required documents for vendor accreditation, and generates reports for monitoring and
reference. The Bank works with its suppliers to generate awareness and understanding
of sustainability principles to help identify and mitigate the supply chain’s environmental
and social impact. The Bank also aims to find ways to build its supply chain’s resilience
to both natural and man-made disasters brought about by climate change.

81
 Acceptance/Solicitation of Gifts, Bribery,
and Corruption
The Bank has zero tolerance for the solicitation and acceptance, directly or indirectly,
of any gift (including entertainment services or activities), gratuity, commission or any
form of payment from clients, business partners, suppliers and third party service
providers in connection to a service that may, in any way, influence the Director’s,
Officer’s or employee’s decision-making in exchange for any unnecessary favorable
treatment. Likewise, BDO commits to comply with anti-corruption and bribery laws
in all jurisdictions it operates. BDO will not make political donations that may be
interpreted as an attempt to encourage favorable treatment of BDO and/or its directors
and employees.

Anti-Money Laundering, Counter-Terrorist Financing,

and Proliferation Financing
BDO is committed to conduct business with the highest ethical standards and in full
compliance with all applicable laws and regulations. The Bank seeks to prevent the
flow of illicit funds on money laundering, combat terrorist financing, and proliferation
financing by establishing policies and guidelines that would detect and report on red
flags for these activities. These are articulated in the Board-approved Money Laundering
and Terrorist Financing Prevention Program Manual (MTPP) which requires mandatory
compliance from front liners and Bank officers.

BDO has also adopted the following pillars in its Anti-Money Laundering (AML), Counter-
Terrorist Financing (CTF) and Combating Proliferation Financing (CPF) initiatives:

Know Your Client (KYC). Acquiring the necessary information and performing
validation to establish the identity of the client, including beneficial owners, are part
of the core processes in the Bank’s efforts to prevent money laundering, and terrorist
and proliferation financing. Policies, procedures and tools are in place to screen new
and existing clients and transactions. For product-specific transactions such as trade,
KYC and screening extend to counterparties, vessels, ports, routes, and commodities,
standards for establishing and maintaining business relationships are explicit
and defined.
Know Your Employee (KYE). Managing attendant AML, CTF, and CPF risks;
safeguarding assets; and the protection of stakeholders are among the primary
considerations in maintaining a strong and responsible workforce. Recruitment and
screening standards cover physical, mental, social, and moral aptitude in order
to strictly adhere to the fit and proper rule for bank personnel as prescribed by
relevant regulations. To implement the KYE process, there is continuing monitoring
of employees’ lifestyle, behavior and compliance with the Bank’s code of conduct.
Employees are required to uphold professionalism and integrity in all their dealings at
all times and they are encouraged to report any form of adverse behavior or practice
as espoused in the Bank’s Corporate Governance Manual on whistle-blowing and
anti-bribery and corruption.
Ongoing Monitoring and Independent Checking. Product and transaction owners
perform and actively monitor changes in profile, behavior, and transaction patterns of
their customers through cyclical due diligence, daily and periodic monitoring reports,
on-site visits, sales calls, and other means to secure updated information.

82
 Designated Unit Compliance Coordinators (UCCs) for branches and business units
check compliance with the AML Program of the Bank on a monthly basis. Moreover,
the Bank’s AML Department under the Compliance Group conducts year round
Independent Compliance Testing (ICT) based on risk-based AML roadmap that is
approved by the Bank’s Board Audit Committee.
The Bank also employs an enterprise-wide AML monitoring system which generates
alerts based on pre-defined scenarios and specific parameters. Alert scenarios were
configured to flag accounts and transactions that may be suspiciously connected
with sanctioned and designated lists. These alert scenarios are subject to annual
review and assessment.
The Risk Classification Process (RCP) is a module under the AML system that runs risk
classifiers on transactional behavior across the institution’s customer database. The
RCP automates the process of integrating the onboarding or prior risk classification of
a client and the actual transactional behavior. The RCP process supports an updated
and current customer risk profile.
For AML System and funds flow monitoring, an interim tool enables monitoring of
customers’ activities on an aggregate basis and equips the AML investigators to
pull information on all accounts and transactions of particular customers and their
related accounts.
Regulatory Reporting. The Bank adheres to all the prescribed regulatory reporting
requirements including Covered and Suspicious Transactions (CTRs and STRs). The
Bank’s AML system facilitates the reporting of CTRs and STRs, while a Robotics
Process Automation (RPA) assists in the reporting procedures. CTRs are transactions
above P500,000 in value, while STRs are transactions with suspicious indicators. STRs
are reportable regardless of amount and these include attempted transactions.
Record Retention. BDO strictly upholds the confidentiality and integrity of Bank
records and adheres to AML rules and regulations on record management. Records
are either retained for a minimum of five (5) years or in perpetuity.
Training. AML, CTF, and CPF awareness initiatives and trainings are integral in the
organization’s compliance culture that promotes proficient management of money
laundering risks. Regulatory advisories and AML bulletins are regularly cascaded to
employees to promote familiarity and knowledge of regulations and emerging AML
risks, typologies and crimes. All new employees are required to take mandatory AML,
CTF, and CPF basic e-learning courses prior to deployment while existing personnel
undergo regular AML e-learning modules, refresher courses, and classroom and
virtual trainings conducted by the AML Department. Key personnel for the effective
implementation of the Bank’s AML program subscribe to external trainings conducted
by regulators, industry specialists and global AML experts.

Stakeholder Communication 102-43

BDO implemented a comprehensive communication plan on the Bank’s sustainability
initiatives to generate wider awareness and understanding of how the Bank helps fuel
the economy, protect the environment, and contribute towards positive social impact in
the country.

Key themes for sustainability stories focused on the following:

Support to micro, small and medium enterprises (MSMEs)

Accreditation of the Bank’s Sustainable Finance Framework by Sustainalytics, for
future bond issuances
Sustainable Finance projects
Asia’s Top Sustainability Advocate award
Sustainability Bond issuance
83
 The Bank’s Corporate Communications team shared stories with traditional media
(including national broadsheets, tabloids, and provincial publications), online news sites,
as well as bloggers with targeted market segments as their followers. The stories were
also widely shared on BDO’s own social media accounts on LinkedIn and Facebook and
select bloggers.

Throughout the year, the Sustainability Office also actively represented BDO in several
virtual forums and webinars to share the plan on the Bank’s sustainability initiatives as
disclosed in the 2020 Sustainability Report. Among these were the HSBC Sustainability
Summit on banks and achieving net zero; BusinessWorld Insights’ Forum on how ESG
criteria guides leading companies; the Nordic Embassies Forum on gender equality
in the workplace; and the 5th Asia Sustainability Reporting Summit on corporate
governance and sustainability.

Looking Ahead
The Bank is now in the era of digital transformation and we continue to look at ways
to optimize the use of the new technologies to strengthen our corporate governance
practices while remaining vigilant on the risk of digitization to our business operations.
In ensuring that the Bank stays as the market leader in the Philippine financial services
industry, we are focused on maximizing the effectiveness of our corporate governance
practices as a business enabler and driver of our performance in the proper context
of risks and rewards, opportunities and prospects for the Bank. This is essential going
forward as we continue to compete and remain relevant to our various stakeholders.
Globally, there is also an increasing call for companies to support the UN Sustainable
Development Goals as part of sustainable business performance with emphasis on
strategies that promote economic growth, environmental protection, efforts that
address a range of social needs and a governance model that considers sustainability
issues. BDO continues to be mindful of these and creating a positive impact on
sustainability as it continues to report annually on its sustainability performance and
contribution to the UN Sustainable Development Goals.

84
GRI Content
Index

For the Materiality Disclosures Service, GRI Services reviewed that the GRI content index is
clearly presented and the references for Disclosures 102-40 to 102-49 align with appropriate
sections in the body of the report.

Page Number(s), Direct Reason for

GRI Standard Disclosure Answer and/or URLs Omission

General

Strategy

Governance

85
 Page Number(s), Direct Reason for
GRI Standard Disclosure Answer and/or URLs Omission

Subsidiaries

boundaries

None
None

Annual

Material Topics

Page Number(s), Direct Reason for

GRI Standard Disclosure Answer and/or URLs Omission

boundary

components

approach

boundary

components

supported

86
 Page Number(s), Direct Reason for
GRI Standard Disclosure Answer and/or URLs Omission
Energy

boundary

components

approach

Water

boundary

components

approach

Effl
Emissions

components

approach

emissions
Employment

components

approach

turnover

87
 Page Number(s), Direct Reason for
GRI Standard Disclosure Answer and/or URLs Omission

boundary

components

approach

boundary

components

approach

Page Number(s), Direct Reason for

Disclosure Answer and/or URLs Omission

DMA

DMA

issues

88
Memberships in
Associations
ACI Philippines the Financial French Chamber of National Association
Markets Association Inc. Commerce in the Philippines - of Securities Broker
Le Club Inc. Salesmen, Inc.
Association of Bank
Compliance Officers, Inc. Fund Managers Association of Nordic Chamber of Commerce
the Philippines, Inc. (FMAP) of the Philippines, Inc.
Association of Bank
Remittance Officers, Inc. German-Philippine Chamber People Management
of Commerce & Industry Inc. Association of the
Association of Philippine Philippines, Inc.
Correspondent Bank
Officers, Inc. Management Association of Phil. Association of National
the Philippines, Inc. Advertisers, Inc.
Australian-New Zealand
Chamber of Commerce Information Systems Audit Philippine Payments
Philippines, Inc. and Control Association, Inc. Management, Inc.
(ISACA)
Bank Marketing Association of Singapore Philippines
the Philippines Institute of Internal Auditors Association Inc.
Philippines, Inc.
Bank Security Management Spanish Chamber of
Association of the Philippines Israel Chamber of Commerce Commerce in the Philippines
Incorporated of the Philippines, Inc.
The American Chamber of
Bankers Association of IT & Business Process Commerce of the Philippines,
the Philippines Association of the
Philippines, Inc.
Bankers Institute of the The Canadian Chamber
Philippines, Inc. Italian Chamber of Commerce of Commerce of the
in the Philippines, Inc. Philippines, Inc.
British Chamber of Commerce
of the Philippines, Inc. Japanese Chamber of The Japanese Association
Commerce and Industry Manila Inc.
Clearing Officers Club, Inc. of Cebu, Inc.
The Japanese Chamber of
Credit Card Association of the Korean Chamber of Commerce and Industry of the
Philippines, Inc. Commerce Philippines Philippines, Inc.
Dutch Chamber of Commerce (KCCP), Inc.
The Philippines-Japan
in the Philippines, Inc. Makati Business Club, Inc. Society, Inc.
Employers Confederation of Management Association of Trust Officers Association of
the Philippines the Philippines the Philippines, Inc.
Financial Executives Institute Money Market Association of
of the Philippines the Philippines, Inc. (MART)

89
 Sustainability and ESG
Awards and Recognition
Platinum Award Water Deal of the Year
(2010–2021)
The Asset ESG Corporate Awards 2021
Investment Corporation as lead arranger and
BDO Unibank: The Best of Asia awardee
(2005–2019, 2021) sole bookrunner)
Corporate Governance Asia The Asset Triple A Infrastructure Awards 2021
16th Asian ESG Award 2021

BDO Unibank, Asian Excellence awardee Initiative of the Year – Philippines

(2011–2021) Asian Banking & Finance
Retail Banking Awards 2021
(Philippines) awardee
(2011–2021) Pooled Testing and Other Initiatives for

(2014–2015, 2017–2021) Health Promotion)

(2020–2021) Awards (AREA) 2021

Corporate Governance Asia
11th Asian Excellence Award 2021 Women in the Workforce

Women as percentage of total staff

Rank #4 in Asian Banks and #3 in the
Excellence
3G Excellence Award in Education & Literacy
Programme recent graduate hires that are women
Global Good Governance Awards 2021 Asiamoney Leaders for Women Survey 2021
Top Sustainability Advocates in Asia
Asia Corporate Excellence & Sustainability
Awards (ACES) 2021

Bond (Philippines)

dual-tranche Asean green bond; BDO Capital &

Investment Corporation as issue manager, lead
underwriter and bookrunner)
The Asset Triple A Country Awards 2021

For the complete list of accolades presented to BDO and its subsidiaries, please refer to the 2021 Annual Report.

90
 COMPANY HEADQUARTERS

BDO Corporate Center

7899 Makati Avenue
Makati City 0726
Philippines
Telephone: +63 (2) 8840-7000
Company website: www.bdo.com.ph

INVESTOR AND SUSTAINABILITY INQUIRIES

analysts, investors, and the financial community.

BDO Investor Relations and Planning

31/F BDO Towers Valero
8741 Paseo de Roxas Avenue
Salcedo Village
Makati City 1226
The 2021 Sustainability Report can Philippines
be viewed and downloaded online Telephone: +63 (2) 8840-7000
at www.bdo.com.ph/company-
locals 36069, 34809, 33581
disclosures/sustainability-report.
Email: irandcorplan@bdo.com.ph
The 2021 Annual Report and the
Financial Supplements can be
viewed and downloaded online 10/F BDO Towers Valero
at www.bdo.com.ph/company- 8741 Paseo de Roxas Avenue
disclosures/annual-reports. Salcedo Village
Makati City 1226
Philippines
Telephone: +63 (2) 8840-7000
locals 37170, 34568, 34567, 45406
the Bangko Sentral ng Pilipinas Email: bdo-sf@bdo.com.ph
with contact number +63
(2) 8708-7087, email address BDO Sustainability Office
consumeraffairs@bsp.gov.ph, 35/F BDO Corporate Center Ortigas
and webchat at www.bsp.gov.ph. 12 ADB Avenue
For concerns, please visit any Ortigas Center
BDO branch nearest you, or Mandaluyong City 1554
contact us through our 24x7 hotline Philippines
+63 (2) 8631-8000 or email us Telephone: +63 (2) 8688-1288 local 34803
via callcenter@bdo.com.ph. Email: sustainability@bdo.com.ph

91