the banking sector: the philippine banking system, universal and

O�ce of Supervisory Policy Development, Supervision and Examination Sector8

Philippine Banking System

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_________

;N#G-#37#"(1IH*26!#9:;;

Status Report on the Philippine Financial System

First Semester 2011

9O�ce of Supervisory Policy Development, Supervision and Examination Sector

Operating Network

V>2%(,# /!"# -"0"-/"2# %(# 2"?%"4C# )*(+# -/2>6/>2"#'23,2"--%?"&.# -/2"*0&%("1# *-# *# 2"->&/# 37# 3(,3%(,#%(1>-/2.#63(-3&%1*<3(#*(1#6&3->2"-#)>/#0*1"#032"#%(6&>-%?"# 4%/!# -%,(%86*(/# %0'23?"0"(/-# (3/"1# %(#"I)*(+%(,#*(1#%(6&>-%?"#8(*(6"@##H32"3?"2C#/!"#AT$#-/*2/"1# %0'&"0"(<(,#/!"#/43I'!*-"1# &%)"2*&%X*<3(#37#)*(+#)2*(6!%(,#/!%-#."*2#\A3=#G2<6&"#9]#/3#'2303/"#,2"*/"2# 630'"<<3(# %(# /!"# 1"&%?"2.# 37# )*(+%(,#

-"2?%6"-#/3#1"'3-%/32-@

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

7230#."*2#*,3B-#&"?"&@##_(#*?"2*,"C#*#/3/*&#37#OL#)*(+%(,#3J6"-#4"2"#*11"1#*((>*&&.# %(# /!"# )*(+%(,# -.-/"0B-# 3?"2*&&# '!.-%6*&#-/2>6/>2"# 732# /!"# &*-/# 1"6*1"# 4%/!# /!"# ."*2# 9::M#'3-<(,# /!"# !%,!"-/# (>0)"2# 37# "='*(-%3(# 37# QLO#)*(+%(,#3J6"-#*-#*#2"->&/#37#"-/*)&%-!0"(/#37#("4#

)2*(6!"-@#

V>2%(,#/!%-#'"2%31C#)*(+-#*663>(/"1#732#ZN@;#'"26"(/#\-&%,!/&.# 134(# 7230# ."*2# *,3B-# ZQ@;# '"26"(/]# 37#8(*(6%*&#%(-</><3(-;Q#>(1"2#/!"#"F"6<?"#->'"2?%-%3(#37#/!"#A*(,+3#T"(/2*&#(,#$%&%'%(*-#\AT$]@# !"#-&%,!/#

2"1>6<3(#%(#-!*2"#4*-#3(#*663>(/#37#)*(+#0"2,"2-C#63(-3&%1*<3(# *(1# 6&3->2"-# 1>2%(,# /!"# -"0"-/"2# %(#2"?%"4@

R32# /!"#82-/# -"0"-/"2#37#9:;;C# /!"#)*(+%(,#-.-/"0#63(-%-/"1#37# /!"# 73&&34%(,b#9:#>(%?"2-*&#)*(+-#4%/!#PC;;;# )2*(6!"-# \>'# 7230# ."*2# *,3B-# ;O# >(%?"2-*&#)*(+-# 4%/!# PC:PP# )2*(6!"-]C# ;M# 6300"26%*&# )*(+-#4%/!#Q;N#)2*(6!"-#\134(#7230#;O#!"*1#3J6"-#)>/#>'# 7230#N;P#)2*(6!"-]C# L9# /!2%c# )*(+-#4%/!# ;CZ:O#)2*(6!"-# \134(# 7230#LP#!"*1#3J6"-#)>/# >'# 7230#;C9NN# )2*(6!"-;L]C# NMO# 2>2*&# )*(+-# 4%/!# 9C:;N#)2*(6!"-# \134(# 7230#Q9:# 2>2*&#)*(+-#)>/#>'# 7230#;COMZ#)2*(6!"-;M]#*(1#P:#633'"2*<?"#)*(+-#4%/!#;9Q#)2*(6!"-# \134(#7230#P;#633'"2*<?"#)*(+-#)>/#>'#7230#;;Q#)2*(6!"-]@##


Total Banking UnitsFor End-Periods Indicated

6,000

6,500

7,000

7,500

8,000

8,500

9,000

98* 99 00 01 02 03 04 05 06 07 08 09 10

Jun11

720

770

820

870

920

970

Head Offices (RHS) Branches (LHS)

* BSP's merger and consolidation policy began in 1998 with the issuance of Circular No. 172 dated 03

September 1998

No. of Branches No. of Head Offices

0

9

2935

3944 44

80

9296

99103 102

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 End-Sep'11

Number of Banking Offices &

ATMs

0

10

20

30

40

50

60

70

80

90

100

110

Bank Closures (RHS)* Number of Banking Offices (LHS)*

Number of ATMs (LHS)* Number of Banks with E-banking (RHS)*


Closures vs. E-banking GrowthFor End-Periods Indicated

Average Rate of Closure = 18 banks per year

Number of Bank Closures &

Banks with E-Banking

* Preliminary. As of End-March 2011

______________________

;Q#G'*2/# 7230#)*(+-C# /!"#AT$# ->'"2?%-"-#(3(I)*(+-#4%/!#E>*-%I)*(+%(,# 7>(6<3(-#

*(1[32# /2>-/# 32# %(?"-/0"(/# 0*(*,"0"(/# *6<?%<"-# \UHG]C# 8(*(6%*&# *&&%"1#

->)-%1%*2%"-[*J&%*/"-# 37# )*(+-# *(1# E>*-%I)*(+-C# (3(I-/36+# -*?%(,-# *(1# &3*(#

*--36%*<3(-# %(6&>1%(,# '*4(-!3'-@# G-# 37# "(1IY>("# 9:;;C# /!"# /3/*&# (>0)"2# 37#

8(*(6%*&# %(-</><3(-# >(1"2# /!"# "F"6<?"# ->'"2?%-%3(# 37# /!"# AT$# 2"*6!"1# 9NCP9M#

\>'#).#;CZNQ#%(-</><3(-#7230#."*2#*,3B-#9PC:L9]@##_7#/!"-"#8(*(6%*&# %(-</><3(-C#

'*4(-!3'-# 632("2"1# /!"# &%3(B-# -!*2"# */# QZ@O# '"26"(/# 32# ;QC9ZO# '*4(-!3'-# \>'#

7230#Q9@L#'"26"(/#32#;NC;:N#'*4(-!3'-]@

;L#U(6&>-%?"#37#/!2""#0%6238(*(6"#32%"(/"1#/!2%c#)*(+-#*(1#9;#0%6238(*(6"#"(,*,"1#

\4%/!#*/#&"*-/#N:#'"26"(/#37#3'"2*<3(-#1"1%6*/"1#/3#0%6238(*(6"]#/!2%c#)*(+-@##

;M#U(6&>-%?"#37#-%=#0%6238(*(6"#32%"(/"1#2>2*&#)*(+-#*(1#;N;#0%6238(*(6"#"(,*,"1#

\4%/!#*/#&"*-/#N:#'"26"(/#37#3'"2*<3(-#1"1%6*/"1#/3#0%6238(*(6"]#2>2*&#)*(+-@#



Physical CompositionFor End-Periods Indicated

Total Head OfficeOther

Office/BranchesTotal Head Office

Other

Office/Branches

All Banks 8,685 773 7,912 8,915 739 8,176

Universal and Commercial Banks 4,596 38 4,558 4,764 38 4,726

Thrift Banks 1,329 74 1,255 1,381 72 1,309

Rural and Cooperative Banks 2,760 661 2,099 2,770 629 2,141

Bank Category

End-June 2010 End-June 2011

!"#-'"6%86#630'3-%<3(#37#)*(+%(,#3J6"-#).#0*532#)*(+%(,#,23>'-#%-#->00*2%X"1#*)3?"@

d"3,2*'!%6#1%-/2%)><3(#37#)*(+%(,#3J6"-#2"0*%("1#/!"#-*0"#4%/!#)*(+-#&36*/"1#03-/&.#3(-!32"#*/#OO@Q#'"26"(/# 4%/!# MCMM;# )*(+%(,# 3J6"-# \>'# 7230# ."*2#*,3B-# MCQN;# )*(+-]# 4!%&"# 3F-!32"# )*(+%(,# 3J6"-#0*1"#>'#/!"#2"0*%(%(,##:@P#'"26"(/#4%/!#ZP#3?"2-"*-#)*(+%(,#("/432+#\>(6!*(,"1]@#

R32# )*(+-# 130%6%&"1# %(# /!"# $!%&%''%("-C# )*(+#1%-/2%)><3(# -<&&# 7"*/>2"-# *# '230%("(/# >2)*(# )%*-#*-# /!".# 2"0*%("1# 63(6"(/2*/"1# %(#!%,!&.#'3'>&3>-C#

>2)*(%X"1#*(1#!%,!"2#%(630"#*2"*-@##G-#37#"(1IY>("#9:;;C# /!"# K*<3(*&# D*'%/*&# S",%3(# \KDS]# 6*'/>2"1#/!"#)>&+#37#)*(+%(,#3J6"-#*/#Z9@9#'"26"(/#32#9CMQ:#)*(+%(,# 3J6"-# \134(# 7230# Z9@Q# '"26"(/# )>/# >'#7230# 9CM;M# 3J6"-# *# ."*2# *,3]@# G# 7*2# -"63(1# 4*-#/!"# DGeGAGSf_K# \S",%3(# UgIG]# */# ;P@O# '"26"(/# 32#;CZ9Q#)*(+-#\>(6!*(,"1#7230#."*2#*,3#)>/#>'#7230#*#("/432+#37# ;C9OZ#)*(+-]@# S3>(1%(,#>'# /!"# 3'#Z#4*-#D"(/2*&#e>X3(#\S",%3(#UUU]#*/#;:@P#'"26"(/#32#O9;#)*(+-#\-&%,!/&.#>'#7230#;:@Z#'"26"(/#32#MOP#)*(+%(,#3J6"-]@# D30)%("1C# /!"-"# /!2""# &"*1%(,# 2",%3(-#*663>(/"1#732#NL@N#'"26"(/#32#NC;:L#)*(+%(,#3J6"-#\-&%,!/&.#134(#7230#NL@O#'"26"(/#)>/#>'#7230#NC::N#3J6"-]# 37# /!"# /3/*&# )*(+%(,# ("/432+# (*<3(4%1"@###_?"2# /!"# 0"1%>0I/"20C# 7>2/!"2# )2*(6!# "='*(-%3(#%-# "='"6/"1# '*2<6>&*2&.# %(# H"/23# H*(%&*# 73&&34%(,#AT$B-#/43I'!*-"1#&%c%(,#37#)2*(6!#032*/32%>0#%(#%/-#h"%,!/#2"-/2%6/"1#*2"*-i;O@

H"*(4!%&"C# /!"# /!2""# 2",%3(-# 4%/!# /!"# &34"-/#63(6"(/2*<3(# 37# )*(+%(,# 3J6"-# 4"2"# /!"#G>/3(303>-# S",%3(# 37#H>-&%0#H%(1*(*3# \GSHH]#2",%3(#4%/!# 3(&.# :@9# '"26"(/# 32# ;O# )*(+%(,# 3J6"-#\-&%,!/&.# 134(# 7230# :@Z# '"26"(/# 32# 9P# )*(+%(,#3J6"-]C# /!"# D321%&&"2*# G10%(%-/2*<?"# S",%3(# \DGS]#4%/!# ;@Q# '"26"(/# 32# ;P9# )*(+-# \>(6!*(,"1# )>/# >'#

85.5% 85.1%

4.9% 5.1%

9.6% 9.7%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

June 2010 June 2011

Universal and

Commercial

Banks

Thrift Banks

Rural and

Cooperative

Banks26.5% 26.2%

57.8%57.6%

16.0%15.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

June 2010 June 2011

Universal and

Commercial

Banks

Thrift Banks

Rural and

Cooperative

Banks

Head Office Branches


Regional Distribution of Onshore Banking Offices

As of end-June 2011

32.20%

4.46%

3.01%

10.37%

14.93%

2.08%

3.13%

1.60%

5.87%

6.55%

1.89%

1.99%

3.64%

3.76%

2.12%

0.21%

2.18%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

NCR

Region I

Region II

Region III

Region IV-A

Region IV-B

Region V

CAR

Region VI

Region VII

Region VIII

Region IX

Region X

Region XI

Region XII

ARMM

CARAGA

% to Total Nationwide Banking Network____________________ !"#$%$&'" ()" (*$" +,-$'" )%" ./0/-1" ./23/456)271" ./2,4/1" 8/&/9/:5$1" 8/'/61"8/',71";5$<)2"/23"=/2">5/2?


First Semester 2011

11O!ce of Supervisory Policy Development, Supervision and Examination Sector

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Regional Distribution of Offshore Banking OfficesAs of end-June 2011

58.8%

14.7%

17.6%

8.8%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

Asia-Pacific

Europe

North America

Middle East

% to Total Overseas Banking NetworkPhilippine Banking System

As of End-June 2011

Number of Domestic & Foreign Banks Engaged in

Non-Traditional Banking Services

18

4

18

14

24

20

62

63

3

8

5

3

15

7

7

2

1

0 10 20 30 40 50 60 70

Mobile/Internet via Bancnet's/Megalink's Switch

Proprietary

Mobile (Cellphones/ Laptops/Palm)

Non-Mobile (Phone/PC-based)

Internet

Cash Card/Remittance Card

Electronic Wallet

ATM

Domestic Banks Foreign Banks EMI-Others

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Number of ATM UnitsFor End-Periods Indicated

2,972 3,172 3,135 3,3263,996

4,476 4,898 5,118 5,423 5,744 6,042 6,353

2,3182,714

3,1263,494

2,0371,969

1,736

1,473

1,2471,193823

708

600

1,600

2,600

3,600

4,600

5,600

6,600

7,600

8,600

9,600

10,600

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 June

2011On-site Off-site


Comparative ATM GrowthAs of End-Years Indicated

-20

0

20

40

60

Growth

Rate

(%)

On-site 6.7 (1.2) 6.1 20.1 12.0 9.4 4.5 6.0 5.9 5.2 8.2

Off-site 16.2 45.0 4.5 18.1 17.9 13.4 3.5 13.8 17.1 15.2 19.6

Total 8.6 8.3 5.7 19.6 13.6 10.5 4.2 8.2 9.3 8.4 12.0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010June

2011

____________________FF%7)85*<!$%')!%IDY%*)4&%5'8-&!<%'>!#$!-$%N4&(4)%&(!%I$4-%M-8498%#!?4')

F0%^'#+!#5:%M!)4)$*5-% *#-5%C-).1%7)86


First Semester 2011


Results of OperationsS&#')?% 8#!<4&% ?#'N&(% $*//'#@)?% &(!% #!$/!8&-,5!%!8')'+48% !=/-)$4')% &'?!&(!#% N4&(% 8'$&O!U84!)&%'/!#-@')$%'"%,-).$%/#'//!<%*/%,-).$;%/#'9&-,454&:%"'#% &(!%9#$&%(-5"%'"%F2006%R!&%/#'9&% $&''<%-&%MG06V%,4554')1% Fb62% /!#8!)&% (4?(!#% &(-)% &(!% MW26a% ,4554')%/'$&!<% $-+!% /!#4'<% 4)% F2026% D(4$% 4$% )!-#5:% &(#!!O9K($%'"%&(!%"*55%:!-#%F202%)!&%/#'9&%'"%MV06F%,4554')6%%%

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7)% &!#+$% '"% $/!8498% #!>!)*!% $&#!-+$1% &(!% ,*5.% $@55%8-+!% "#'+% )!&% 4)&!#!$&% 4)8'+!% -&% aW6V% /!#8!)&%'#% M00W6X% ,4554')% E<'N)% "#'+% aa6G% /!#8!)&% ,*&% */%"#'+% M02a6b% ,4554')H6% R!&% 4)&!#!$&% 4)8'+!% #!8'#<!<%-)% -))*-5% ?#'N&(% '"% [62% /!#8!)&% N(48(% N-$% G6F%/!#8!)&-?!% /'4)&$% (4?(!#% &(-)% !)<OP*)!% F202;$%#-&!% '"% 06b% /!#8!)&% ')% -88'*)&% '"% $&#')?!#% 8#!<4&%!=/-)$4')%<*#4)?%&(!%$!+!$&!#%4)%#!>4!N6%

i!-#O')O:!-#1% 4)&!#!$&% !=/!)$!$% 8')&#-8&!<% ,:% F6W%/!#8!)&%-$%&(!%'>!#-55%5!>!5%<#'//!<%&'%MGG6F%,4554')%"#'+%&(!%MGa6G%,4554')%#!8'#<!<%$-+!%/!#4'<%5-$&%:!-#6%D(!%#!<*8@')%/#4+-#45:%8-+!%"#'+%&(!%06b%/!#8!)&%'#%M26b%,4554')%<!854)!% 4)% 4)&!#!$&$%/-4<%')%<!/'$4&$%N(48(% 8')$@&*&!% &(!% ,*5.% '"% 4)&!#!$&% !=/!)$!$% -&%[V6G%/!#8!)&6% % ^'#% &(!% $4=%+')&($%/!#4'<%!)<!<%X2%P*)!%F2001% 4)&!#!$&%/-4<%')%<!/'$4&$%#!-8(!<%MWX6V%,4554')%"#'+%MWW6a%,4554')%$-+!%/!#4'<%5-$&%:!-#6%%

I8#'$$% <!/'$4&% -88'*)&$1% 4)&!#!$&% #-&!$% /-4<% ')%4)&!#!$&O$!)$4@>!% @+!% <!/'$4&$% N(48(% 8')$@&*&!<%+'#!% &(-)% (-5"% '"% &(!% ,-).4)?% $:$&!+;$% 4)&!#!$&%!=/!)$!$%<*#4)?%&(!%$!+!$&!#%$4+45-#5:%8')&#-8&!<%,:%W60%/!#8!)&%&'%MFX6X%,4554')%"#'+%MFW6X%,4554')%$-+!%/!#4'<%4)%F2026%S4+45-#5:1%4)&!#!$&%/-4<%')%,'##'N!<%"*)<$FW% $(#-).% ,:% 0[6F% /!#8!)&% '#% M26b% ,4554')% &'%MX6V%,4554')% "#'+%MW6[%,4554')%$-+!%/!#4'<% 5-$&%:!-#6%%7)&!#!$&$%/-4<%')%,'##'N!<%"*)<$%-88'*)&!<%"'#%[60%/!#8!)&%'"%&'&-5%4)&!#!$&%!=/!)$!$%<*#4)?%&(!%#!>4!N%/!#4'<6

Y!-)N(45!1%)')O4)&!#!$&%4)8'+!%-88'*)&!<%"'#%XG60%/!#8!)&% '#% Ma06[% ,4554')% E*/% "#'+% XX6G% /!#8!)&% '#%MGX6V%,4554')% $-+!%/!#4'<% 5-$&% :!-#H%'"% &(!%,-).4)?%$:$&!+;$% &'&-5%'/!#-@)?% 4)8'+!6%i!-#O')O:!-#1%)')O4)&!#!$&%4)8'+!%/'$&!<%-%<'*,5!O<4?4&%?#'N&(%'"%0W6G%/!#8!)&%<#4>!)%,:%&(!%X6X%/!#8!)&%$4+45-#%!=/-)$4')%4)%"!!O,-$!<%4)8'+!%N(48(%#!/#!$!)&!<%XV6X%/!#8!)&%E<'N)% "#'+% WX6G% /!#8!)&H% '"% &'&-5% )')O4)&!#!$&%4)8'+!6% D#-<4)?% 4)8'+!1% N(48(% ')5:% -88'*)&!<%"'#% W6V% /!#8!)&% E<'N)% "#'+% FX62% /!#8!)&H% '"% &'&-5%'/!#-@)?% 4)8'+!% &(4$% /!#4'<1% #!8'#<!<% -% :!-#O')O:!-#%8')&#-8@')%'"%[G6G%/!#8!)&%&'%MX6X%,4554')%"#'+%M0F6W%,4554')6%

I)'&(!#%$4?)498-)&%8')&#4,*&'#%N-$%"!!O,-$!<%4)8'+!%N(48(%?#!N%,:%X6X%/!#8!)&%:!-#O')O:!-#%&'%MFW6F%,4554')%"#'+%MFX6G%,4554')6%D(!$!%N!#!%"!!$%-)<%8'++4$$4')$%?!)!#-&!<%,:%,-).$%&(#'*?(%&(!4#%/-:+!)&%$!#>48!$1%4)&!#+!<4-@')%$!#>48!$1%8*$&'<4-)$(4/1%*)<!#N#4@)?%-)<% $!8*#4@!$% <!-5!#$(4/1% $!8*#4@e-@')% -8@>4@!$1%4)8'+!%"#'+%9<*84-#:%-8@>4@!$%-)<%'&(!#%"!!O,-$!<%4)8'+!%N(48(%-55%4)%-55%-88'*)&!<%"'#%XV6X%/!#8!)&%'"%&'&-5%)')O4)&!#!$&% 4)8'+!%E<'N)%"#'+%WX6G%/!#8!)&%$-+!% /!#4'<% 4)% F202H6% D(!% ,-5-)8!% N!)&% &'% '&(!#%4)8'+!%N(48(%$4+45-#5:%!=/-)<!<%,:%X[6G%/!#8!)&%&'%Mb6b%,4554')% "#'+%Ma6W%,4554')%$-+!%/!#4'<% 5-$&%:!-#6%T&(!#% 4)8'+!% -88'*)&!<% "'#% 0W6F% /!#8!)&% '"% &'&-5%)')O4)&!#!$&% 4)8'+!% E*/% "#'+%006V% /!#8!)&H% <*#4)?%&(!%$!+!$&!#%4)%#!>4!N6%%

^'#% &(!% 9#$&% (-5"% '"% F2001% ,-).$% #!8'#<!<% -)% b60%/!#8!)&% (4.!% 4)% )')O4)&!#!$&% !=/!)$!$% &'% M00F6a%,4554')%"#'+%M02W60%,4554')%$-+!%/!#4'<%4)%F2026%D(!%?#'N&(%N-$%5-#?!5:%<#4>!)%,:%&(!%$4+45-#%V62%/!#8!)&%*/@8.%4)%8'+/!)$-@')%-)<%"#4)?!%,!)!9&$%&'%MXb6G%,4554')%"#'+%MXG6X%,4554')6%Y'#!%&(-)%-%&(4#<%-&%XW6F%/!#8!)&%E*/%"#'+%XX6V%/!#8!)&%$-+!%/!#4'<%4)%F202H%

Results of OperationFor End-Periods Indicated

4.2%

31.2%

67.7%

-34.2%

9.5%

29.0%

27.0%

-300.0

-200.0

-100.0

0.0

100.0

200.0

300.0

400.0

2005 2006 2007 2008 2009 2010 June 2011

(40.0)

(30.0)

(20.0)

(10.0)

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Net Interest Income (LHS) Non-Interest Income (LHS)Non-Interest Expense (LHS) Income Tax Expense (LHS)Net Profit Growth Rate (RHS)

In P Billions In Percent

____________________FW%% !"!#$%&'%4)&!#!$&%')%,455$%/-:-,5!%N4&(%CSM1%5'8-5%,-).$1%"'#!4?)%,-).$1%<!/'$4&%%%

$*,$@&*&!$%-)<%'&(!#$%-$%N!55%-$%4)&!#!$&%')%4)&!#,-).%5'-)$%/-:-,5!6


Non-Interest IncomeFor End-Periods Indicated

2.1%

25.5%25.2%

(25.0)%

10.8%

32.7%

13.3%

(10.0)

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

2004

2005

2006

2007

2008

2009

2010

June2011* (25.0)

(15.0)

(5.0)

5.0

15.0

25.0

35.0

45.0

Other (LHS) Fee-based (LHS)Dividend Income (LHS) Foreign Exchange Profit (LHS)Trading (LHS) Non-interest income growth rate (RHS)


* Annualized for the 12-month period July 2010 to June 2011


'"%&(!%,-).4)?%$:$&!+;$%&'&-5%)')O4)&!#!$&%!=/!)$!$%N!#!%8'+/!)$-@')%-)<%"#4)?!%,!)!9&$6%D(!%,*5.%'"%&(!$!% 8'+/!)$-@')% -)<% "#4)?!% ,!)!9&$% N!#!% &(!%$-5-#4!$%-)<%N-?!$%'"%,-).%/!#$'))!5%N(48(%/'$&!<%-)%b6b%/!#8!)&%?#'N&(%:!-#O')O:!-#%&'%MFW6[%,4554')%"#'+%MFF6[%,4554')%"'#%&(!%9#$&%(-5"%'"%F2026%D(!%"#4)?!%,!)!9&$% '"% ,-).% 'U8!#$% -)<% !+/5':!!$1% N(48(%8')$@&*&!<%F06F%/!#8!)&%E*/%"#'+%F26X%/!#8!)&%$-+!%/!#4'<% 4)% F202H% '"% &(!% ,-).$;% )')O4)&!#!$&% #!5-&!<%!=/!)$!$% ')% 8'+/!)$-@')% -)<% "#4)?!% ,!)!9&$1%#!8'#<!<% -% +*8(% "-$&!#% -))*-5% ?#'N&(% '"% 0W62%/!#8!)&%&'%Mb6F%,4554')%"#'+%M[6F%,4554')6%%%

C-).$% N!#!% $@55% 4)&'% &#-<4@')-5% ,-).4)?% -$% 8'#!%!-#)4)?$% /#4+-#45:% 8-+!% "#'+% 4)&!#!$&% ?!)!#-@)?%,-5-)8!% $(!!&% -88'*)&$%N(45!% -,'*&% -% &(4#<% '"% &(!%#!>!)*!% $&#!-+% N!#!% "#'+% )')O4)&!#!$&% 4)8'+!%#!5-&!<% -88'*)&$% -)<%/-#&5:% "#'+%'\O,-5-)8!% $(!!&%&#-)$-8@')$6%

D(!%#-@'%'"%$'*#8!$%'"%#!>!)*!%&'%&'&-5%-$$!&$%>-#4!<%/!#%,-).%8-&!?'#:6%j)4>!#$-5%-)<%8'++!#84-5%,-).$1%N(48(% -88'*)&!<% "'#% bV6X% /!#8!)&% '"% &'&-5% -$$!&$%-)<%b06X%/!#8!)&%'"% &'&-5%)!&%/#'9&%'"% &(!%,-).4)?%$:$&!+1%N!#!%85'$!5:%-54?)!<%N4&(%&(!%$:$&!+;$%#-@'6%%D(#4K%,-).$%-)<%#*#-5%,-).$%N!#!%$'*#84)?%#!>!)*!$%+-4)5:% "#'+% 4)&!#!$&% ')% 5'-)$6% ^'#% 8''/!#-@>!%,-).$1% #!>!)*!% $&#!-+$% "#'+% )')O4)&!#!$&% 4)8'+!%-#!%85'$!$&%&'%)!&%4)&!#!$&%4)8'+!%?4>!)%&(!%#!5-@>!5:%

(4?(!#% $!#>48!% "!!% 8(-#?!$% &'% 8'+/!)$-&!% "'#% (4?(%-<+4)4$&#-@>!% 8'$&% 4)% &(!4#% +48#'O$+-55% 5!)<4)?%&#-)$-8@')$6

I))*-54e!<% !-#)4)?% -$$!&% :4!5<% $'K!)!<% &'% a62%/!#8!)&% "#'+% a6W% /!#8!)&% $-+!% /!#4'<% 5-$&% :!-#6%S4+45-#5:1% -))*-54e!<% "*)<4)?% 8'$&% <#'//!<% &'% F60%/!#8!)&% "#'+% F6W% /!#8!)&% <*#4)?% &(!% $-+!% /!#4'<6%D(!$!%8')$!3*!)&5:% #!<*8!<% &(!% 4)&!#!$&% $/#!-<% &'%X6V%/!#8!)&%"#'+%W60%/!#8!)&%-$%&(!%$/#!-<%,!&N!!)%&(!% -))*-54e!<% !-#)4)?% -$$!&% :4!5<% -)<% -))*-54e!<%"*)<4)?%8'$&%)-##'N!<%&'%XVX%,-$4$%/'4)&$%"#'+%W2V%,-$4$% /'4)&$6% D(!% 8')&#-8@')% 4)% 4)&!#!$&% !=/!)$!$%/-#@8*5-#5:%')%,-).$;%#!<*8!<%'\!#!<%#-&!$%')%@+!%<!/'$4&$% -)<% ,'##'N!<% "*)<$% <*#4)?% &(!% #!>4!N%/!#4'<% 5-#?!5:% 4)k*!)8!<% &(!% @?(&!)4)?% '"% &(!%?-/% ,!&N!!)% -))*-54e!<% !-#)4)?% -$$!&% :4!5<% -)<%-))*-54e!<% "*)<4)?% 8'$&6%Y'#!'>!#1% &(!%@?(&!#% ?-/%#!k!8&!<%&(!%$:$&!+;$%,4-$!<%&'N-#<$%9)-)84-5%-$$!&$%'&(!#%&(-)%5'-)$%-$%N!55%-$%"'#%)!-#%543*4<%-$$!&$1%46!61%8-$(%-)<%<*!%"#'+%,-).$6

J*#4)?% &(!% $!+!$&!#% 4)% #!>4!N1% &(!% -))*-54e!<%N!4?(&!<%->!#-?!%'"%,!55N!&(!#%V0O<-:%D#!-$*#:%,455%EDO,455H% #-&!% 54.!N4$!%<4//!<%&'%F6W%/!#8!)&% "#'+%X6V%/!#8!)&%-&%!)<OP*)!%F2026% %I88'#<4)?5:1% &(!%$/#!-<%,!&N!!)%&(!%-))*-54e!<%!-#)4)?%-$$!&%:4!5<%-)<%&(!%,!)8(+-#.%DO,455%#-&!%N4<!)!<%&'%Xa0%,-$4$%/'4)&$%"#'+%FGa%,-$4$%/'4)&$%$-+!%/!#4'<%5-$&%:!-#6%%%Y!-)N(45!1%&(!% ?-/% ,!&N!!)% &(!% -))*-54e!<% "*)<4)?% 8'$&% -)<%DO,455%#-&!%)-##'N!<%&'%XF%,-$4$%/'4)&$%"#'+%0GX%,-$4$%/'4)&$%<*#4)?%&(!%$!+!$&!#%4)%#!>4!N6%T>!#-551%&(!$!%4)<48-&!%-+/5!%543*4<4&:%4)%&(!%$:$&!+%N(48(%/#'>4<!$%$'+!%<4$4)8!)@>!%"'#%,-).$%&'%'\!#%(4?(!#%#-&!$%"'#%&(!4#% <!/'$4&% 54-,454@!$% &'% &(!% <4$-<>-)&-?!% '"% &(!%$->4)?%/*,5486%D(!%8'*)&#:;$% $->4)?$% #-&!FG% 8*##!)&5:%$&''<%-&%Fa6a%/!#8!)&%-)<%')!%'"%&(!%5'N!$&%-+')?%&(!%IS`IR%#!?4')6

7)% >4!N% '"% &(!% "'#!?'4)?1% -))*-54e!<% )!&% 4)&!#!$&%+-#?4)% $'K!)!<% &'% W62% /!#8!)&% "#'+% W6F% /!#8!)&%


Non-Interest Expense StructureFor End-Periods Indicated

10.6%

11.4%

11.4%

8.3%

4.6%

9.6%

3.7%

0.0

20.0

40.0

60.0

80.0

100.0

2005

2006

2007

2008

2009

2010

June2011*

0.0

5.0

10.0

15.0

Compensation & Fringe Benefits (LHS) Taxes and Licenses (LHS)

Depreciation & Amortization (LHS) Fees & Commissions Expense (LHS)

Provisions (LHS) Other Administrative Expense (LHS)

Non-Interest Expense Growth Rate (RHS)




Ratio of Sources of Revenue to Total AssetsAs of End-June 2011

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Total Banking UKBs TBs RBs CoopsNet Interest Income Non-Interest Income

In Percent


Selected Ratios vs. 91-day Treasury Bill RateFor End-Periods Indicated

6.0

2.1

13.8

14.010.9

10.3 10.2

7.7

7.5 7.78.2 8.3 7.9

7.77.0

6.1

13.1

15.3

10.2 9.9 9.9

5.4

6.0

7.36.4

5.4

3.4

5.4

4.23.7

2.4

8.08.5

6.4 6.1 6.2

3.9 3.8 3.8 3.9 3.93.4

3.22.6

2.1

-

3.0

6.0

9.0

12.0

15.0

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

June2011*

Earning Asset Yield T-bills (91-day) Funding Cost

In Percent


_____________________________________

!"#$%$&'"()"*&)''"+,-)+,."',/0+*'"1+$("+,-)+,."',/0+*'"2.3'"4$2&$50,-)+6",'","

2$&5$+(")%"*&)''"+,-)+,."0+5)7$",("53&&$+("2&05$'"18)3&5$9":8;<6


First Semester 2011


',7$"2$&0)4"0+" =>=?""@+($&$'("0+5)7$"70705A$4"(B$"4)C+(&$+4")%" +$(" 0+($&$'("7,&*0+" ,'" 0(" 4&)22$4" ()"D?E"2$&5$+("%&)7"F?>"2$&5$+("2)'($4"',7$"2$&0)4"0+" =>=?"

;)72,&,-/$" 2&)G(,H0.0(I" 0+405,()&'" ,5&)''" /,&0)3'"H,+A0+*"'3H*&)32'",&$"'377,&0J$4",'"%)..)C'9

KB$" %,'($&" $L2,+'0)+" )%" ()(,." )2$&,-+*" 0+5)7$" )%"E?!"2$&5$+(")/$&")2$&,-+*"$L2$+'$'M"CB05B"'070.,&.I"*&$C"H3(",(","735B"'.)C$&"&,($")%"N?>"2$&5$+(M" .$4"()"072&)/$4"5)'(O$P50$+50$'"%)&"(B$"H,+A0+*"'I'($7?"Q++3,.0J$4" 5)'(O()O0+5)7$" 1;K@6" &,-)" 072&)/$4" ()"RD? "2$&5$+("%&)7"RF?!"2$&5$+("',7$"2$&0)4".,'("I$,&?S)&" (B$" G&'(" -7$" 0+" ," 4$5,4$M" 2&0/,($" 4)7$'-5"3+0/$&',." H,+A'" H$'($4" (B$0&" %)&$0*+" 5)3+($&2,&('"0+" B).40+*" (B$" 40'-+5-)+" )%" H$0+*" (B$" 7)'(" 5)'(O

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

KB$" 5)72,&,-/$" 5)'(O$P50$+5I" &,-)'" ,5&)''" ,.."H,+A0+*"'3H*&)32'",&$"4$(,0.$4"H$.)C9

V0A$C0'$M"H,+A'"7,+,*$4"()"2&)/04$"2)'0-/$"&$(3&+'"()" (B$0&" 'B,&$B).4$&'?" Q++3,.0J$4" &$(3&+" )+" ,''$('"1#WQ6" '())4" ,(" >?!" 2$&5$+(" %&)7">?D" 2$&5$+(" ',7$"2$&0)4".,'("I$,&?""

Banks managed to provide positive returns to their shareholders

Q5&)''"H,+A0+*"*&)32'M"&3&,."H,+A'"2)'($4"(B$"B0*B$'("#WQ" ,(" >?N" 2$&5$+(" %&)7" >?E" 2$&5$+(" 2)'($4" ',7$"2$&0)4" .,'(" I$,& R" CB0.$" 5)77$&50,." H,+A'" (&,0.$4"H$B0+4"(B$"2,5A",(">?="2$&5$+("CB05B"C,'"H$X$&"(B,+"(B$"=?E"2$&5$+("&$5)&4$4"',7$"2$&0)4".,'("I$,&?

Q++3,.0J$4"&$(3&+")+"$Y30(I"1#WZ6".0A$C0'$"072&)/$4"()" >D?=" 2$&5$+(" %&)7" >>? " 2$&5$+(" 2)'($4" ',7$"2$&0)4".,'("I$,&?"

____________________ R"Q'")%"$+4OU,&5B" =>>"/'?$+4OU,&5B" =>=


Interest Spread vs. Net Interest MarginAs of End-Periods Indicated

3.9%4.4%

4.5%4.5%4.5%4.3%4.2%

3.9%

3.7%

4.0%4.0%

4.4%4.3%4.4%4.3%4.3%

4.1%

3.8%

3.0

3.2

3.4

3.6

3.8

4.0

4.2

4.4

4.6

4.8

5.0

2003 2004 2005 2006 2007 2008 2009 2010 June

2011*Interest Spread Net Interest Margin



Cost-to-Income Ratio


63.2%

81.8%

74.0%

63.2%

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

June2011*

0.0

20.0

40.0

60.0

80.0

100.0

Operating Income (LHS) Net Operating Expenses (LHS) Cost-to-Income (RHS)

In P Billions

1997 Asian

Financial Crisis

In PercentOil Crises

Argentine Sovereign

DefaultSubprime Crisis


!"#$%&'($)*"$+,-.'#/0"%/+1#"0.2"/00"%/+1#",+"'.3('2,+&"45."5,&5.#4"678"'/9("(:";<=>").'3.+4*";=?").'3.+4/&.")(,+4#" 5,&5.'" 45/+" 45." ;@=A" ).'3.+4" )(#4.2" #/B.").',(2"0/#4"!./'="C(BB.'3,/0"%/+1#"D,45"/+"678"'/9("(:"?=E").'3.+4":'(B">=<").'3.+4"#/B.").',(2"0/#4"!./'")'(-,2.2"45."0(D.#4"'.4$'+#"4("#5/'.5(02.'#=

Major Balance Sheet Trends

Assets

F#"(:".+2GH$+."@E;;*"4(4/0"'.#($'3.#"'./35.2"I?*E;J=E"%,00,(+" /+2" D.'." ;;=K" ).'3.+4" 5,&5.'" 45/+" 45."I>*@AK=K"%,00,(+"'.3('2.2"/"!./'"/&(=""L(/+#*"M+/+3,/0"/##.4#"(45.'"45/+"0(/+#"/+2".N$,4!",+-.#4B.+4#"D.'."#900"45."B/,+"'.3,),.+4#"(:"&'(D45="

6($&50!*" %/+1#O" 4(4/0" /##.4#" /33($+4.2" :('" ?A=E").'3.+4" (:" 4(4/0" '.#($'3.#" (:" 45." M+/+3,/0" #!#4.B@?"

/+2" ?J=@" ).'3.+4" (:" 45." 3($+4'!O#" &'(##" 2(B.#93")'(2$34"P+(B,+/0*"/++$/0,Q.2R="S5."#,&+,M3/+4"#5/'."(:" 45." %/+1,+&" #!#4.B" 4(" 45." (-.'/00" .3(+(B,3"($4)$4",+")/'93$0/'*"#,&+,M.#"45.")(4.+9/0".3(+(B,3"3(+#.N$.+3.#" (:" /+!" ,+#4/%,0,4!" (:" 45." 2(B.#93"%/+1,+&" #.34('=" " T+" 45,#" '.&/'2*" 45."2.-.0()B.+4"(:"45."2(B.#93"3/),4/0"B/'1.4"%.3/B."B('."'.0.-/+4=

S(4/0" '.#($'3.#" '.B/,+.2" )',+3,)/00!" :$+2.2" %!"2.)(#,4" 0,/%,0,9.#" /4" ?U=K" ).'3.+4" P2(D+" :'(B" ?K=K").'3.+4" /" !./'" /&(R" /+2" (D+.'O#" 3/),4/0" /4" ;@=E").'3.+4" P$)" :'(B" ;;=>" ).'3.+4R=" (45" '.&,#4.'.2"#$#4/,+.2" /++$/0" &'(D45#" (:" J=K" ).'3.+4" P2(D+":'(B";E=;").'3.+4R"/+2";K=U").'3.+4" P$)" :'(B";@=U").'3.+4R*"'.#).39-.0!="

V$',+&" 45." '.-,.D" ).',(2*" %/+1#O" %/0/+3." #5..4#"#5(D.2")'.:.'.+3.":('"4'/2,9(+/0"#($'3.#"(:",+3(B."4(" #$))('4" )'(M4" (%W.39-.#" %$4" #,B,0/'0!" )'(-,2.2"#$X3,.+4" 0,N$,2,4!" %$Y.'#" :('" $+:('.#..+" #5(31#="V.4/,0#" (:" 45." %/+1,+&" #!#4.BO#" %/0/+3." #5..4"#4'$34$'."/'."#$BB/',Q.2"%.0(DZ

[/'1.4"2,#4',%$9(+"(:"4(4/0"'.#($'3.#"%/'.0!"35/+&.2=""I',-/4."2(B.#93"$+,-.'#/0"%/+1#"#900"5.02"45."0/'&.#4"#5/'."/4"KA=J").'3.+4":'(B"KA=E").'3.+4"/"!./'"/&(=""

S5." %/0/+3.*" ,+" 2.#3.+2,+&" ('2.'*"D/#" 5.02" %!" 45.":(00(D,+&" %/+1,+&" &'($)#Z" &(-.'+B.+4" %/+1#" /4";U=;").'3.+4" P$)" :'(B";@=A").'3.+4R*" :('.,&+"%/+1#"P%'/+35.#" /+2" #$%#,2,/',.#R" /4" ;;=U" ).'3.+4" P$)"


Comparative Return on Assets and Equity (ROA/ROE)For End-Periods Indicated

(0.50)

0.00

0.50

1.00

1.50

2.00

2.50

3.00

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

June2011*

ALL BANKS Universal Banks Commercial Banks

Thrift Banks Rural Banks Cooperative Banks


(5.00)

0.00

5.00

10.00

15.00

20.00

25.00

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

June2011*

ALL BANKS Universal Banks Commercial Banks

Thrift Banks Rural Banks Cooperative Banks


In Percent

In Percent


Asset GrowthFor End-Periods Indicated

5.3%

9.9%

7.3%

12.7%

5.5%

10.5%

9.1%

11.7%

11.5%

-

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

7,000.0

8,000.0

2003 2004 2005 2006 2007 2008 2009 2010 June

2011

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Total Assets (LHS) Growth Rate (RHS)


____________________@?""8\30$2.#"45."4(4/0"'.#($'3.#"(:"45." ]I"/+2"2/4/"/#"(:".+2G[/!"@E;;


First Semester 2011



Distribution of AssetsFor End-Periods Indicated

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

June2011

Private Domestic UBs Private Domestic KBs

Government Banks Foreign Branches/Subsidiaries

Domestic Thrift Banks Rural/Cooperative Banks

!"#$ %%&%$ '(!)(*+,-$ ."#(/0)$ +1!23$ 45*6/$ 5+$ 7&8$'(!)(*+$ 9.":*$ !"#$;&<$'(!)(*+,-$ '!2=5+($."#(/0)$)"##(!)25>$ 45*6/$ 5+$ 8&7$ '(!)(*+$ 9.":*$ !"#$ ?&@$'(!)(*+,-$ 5*.$ !A!5>$ 5*.$ )""'(!50=($ 45*6/$ 5+$ B&?$'(!)(*+$9#5!C2*5>>D$.":*$ !"#$B&7$'(!)(*+,&$

E1($/15!($" $/D/+(#2)5>>D$2#'"!+5*+$45*6/-$2*$+(!#/$" $5//(+/$"!$E"'$%<-$)"*+!5)+(.$+"$?@&F$'(!)(*+$ !"#$??&<$ '(!)(*+$ 5$ D(5!$ 5C"$ 5/$ *2)1($ #5!6(+$ '>5D(!/$C52*(.$ /+!"*C(!$ ""+1">.&$G(5*:12>(-$ +1($ /15!($ " $ "!(2C*$45*6/$94!5*)1(/$5*.$/A4/2.25!2(/,$+"$+1($+"+5>$5//(+/$" $+1($45*62*C$/D/+(#$!(#52*(.$>(//$+15*$15> $" $+1($@<$'(!)(*+$/+5+A+"!D$>2#2+$A*.(!$H()0"*$@$" $I&J&$K"&$77B%$9J*$J)+$L24(!5>2M2*C$+1($N*+!D$5*.$H)"'($" $O'(!50"*/$" $P"!(2C*$Q5*6/$2*$+1($R12>2''2*(/,&$

Loans

HA/+52*(.$ ()"*"#2)$ (S'5*/2"*-$ '"/20=($ 4A/2*(//$/(*0#(*+B;$5*.$+1($/(5/"*5>$'2)6A'$" $>"5*$.(#5*.$2*$0#($ "!$+1($/)1"">$"'(*2*C$2*$TA*($5>>$/A''"!+(.$+1($."A4>(U.2C2+$)!(.2+$(S'5*/2"*$.A!2*C$+1($'(!2".$2*$!(=2(:$5/$+"+5>$>"5*/$"A+/+5*.2*C$9*(+$" $VQL,$:(*+$A'$4D$%;&7$'(!)(*+$ !"#$8&W$'(!)(*+$/5#($'(!2".$>5/+$D(5!&$J/$" $(*.UTA*($B<%%-$+1($>(=(>$/+"".$5+$R@-@@;&F$42>>2"*$ !"#$RB-;%B&;$42>>2"*$5$D(5!$5C"&$$

X"!($ >(*.2*C$ 9+"+5>$ >"5*$ '"!Y">2"$ *(+$ " $ 2*+(!45*6$>"5*/$ "!$ VQL$ 5*.$ !(=(!/($ !('A!)15/($ "!$ IIR$ :2+1$QHR$ 5*.$ "+1(!$ 45*6/,$ /2#2>5!>D$ '"/+(.$ 5$ ."A4>(U.2C2+$C!":+1$" $%7&%$'(!)(*+$+"$R@-<W@&8$42>>2"*$ !"#$RB-8FF&?$42>>2"*$5$D(5!$5C"&$E1($C!":+1$:5/$5>#"/+$+:2)($+1($!()"!.(.$(S'5*/2"*$" $;&8$'(!)(*+$5$D(5!$5C"&

V*)>A/2=($" $VQL$5*.$IIR$:2+1$QHR-$45*6$>(*.2*C$C!(:$4D$ %B&F$ '(!)(*+$ 9A'$ !"#$ ?&%$ '(!)(*+$ 5+$ (*.UTA*($B<%<,$+"$R@-8W;&@$42>>2"*$ !"#$R@-%WB&7$42>>2"*$5$D(5!$5C"&$E12/$5))"A*+(.$ "!$@F&?$'(!)(*+$9.":*$ !"#$W%&B$'(!)(*+,$" $+1($)"A*+!DZ/$C!"//$."#(/0)$'!".A)+$"!$[\RBF$.A!2*C$+1($!(=2(:$'(!2".&

E1($45*62*C$/D/+(#Z/$>"5*/U+"U.('"/2+$!50"$)A!!(*+>D$/+"".$5+$?;&;$'(!)(*+-$B&7$'(!)(*+5C($'"2*+/$12C1(!$+15*$ D(5!$ 5C"Z/$ !50"$ " $ ??&%$ '(!)(*+&$ \(/'2+($ +1($A'0)6-$ +12/$ >5!C(>D$ 2*.2)5+(/$ R12>2''2*($ 45*6/Z$)"*/(!=50=($>(*.2*C$'!5)0)(/$)"#'5!(.$+"$!(C2"*5>$)"A*+(!'5!+/&

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`A*0*C$ 5*.$ P"!(/+!D$/()+"!$5+$%<&;$'(!)(*+$"!$R@;@&8$42>>2"*$9.":*$ !"#$%%&?$'(!)(*+$4A+$A'$ !"#$R@?W&7$42>>2"*,&$X"#42*(.-$+1(/($ +1!(($ ()"*"#2)$ /()+"!/$ 5))"A*+(.$ "!$ @F&W$'(!)(*+$ 9A*)15*C(.,$ "!$ R%-@F;&;$ 42>>2"*$ 9A'$ !"#$


Annual Growth of Total Loans Outstanding (exclusive of IBL)For End-Periods Indicated

25.4%

(5.2)%

6.8%

(1.0)%

21.5%

5.5%

18.7%

(10.0)

(5.0)

0.0

5.0

10.0

15.0

20.0

25.0

30.0

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

June2011

In Percent

Asian Financial Crisis

Oil Crises

Argentine Sovereign Default

Subprime Crisis


Ratio of Domestic Credit to GDPFor End-Periods Indicated

P3,546.7 B

40.2

39.1

39.5

41.4

38.7

39.6

-

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

3,500.0

4,000.0

2006 2007 2008 2009 2010 End-Jun'11

In P Billions

37.0

37.5

38.0

38.5

39.0

39.5

40.0

40.5

41.0

41.5

42.0

In Percent

TLP, gross (nominal) (LHS) % of GDP (RHS)

____________________B;$Q5/(.$"*$ +1($QA/2*(//$ NS'()+50"*/$ HA!=(D$" $ +1($QHR$ "!$ +1($]!/+$ 15> $ " $

B<%%-$4A/2*(//$)"*].(*)($2*.(S$!(#52*(.$'"/20=($5+$@%&;$'(!)(*+&

BF$V*$*"#2*5>$+(!#/-$5**A5>2M(.&

@<$X!(.2+$5>>")50"*$+"$+1($]*5*)25>$ 2*+(!#(.250"*$/()+"!$ !"/($4D$B&<$'(!)(*+$

D(5!U"*UD(5!


R%-B@;&B$42>>2"*,$ " $ +1($45*62*C$ /D/+(#Z/$ +"+5>$ >"5*$'"!Y">2"&$ L"5*$ 5>>")50"*/$ +"$ 4"+1$ +1($ !(5>$ (/+5+($5*.$#5*A 5)+A!2*C$!(>5+(.$/()+"!/$'"/+(.$5*$5**A5>$C!":+1$ " $ %?&B$ '(!)(*+$ :12>($ 5C!2)A>+A!($ !(>5+(.$/()+"!/$!()"!.(.$5*$(S'5*/2"*$" $8&B$'(!)(*+&

O=(!5>>-$ 5>>$ /()+"!/$ '"/+(.$ 5*$ 5**A5>$ C!":+1$ 2*$+(!#/$ " $ +1(2!$ >"5*$ 2*+56($ (S)('+$ "!$ +1($ RA4>2)$J.#2*2/+!50"*$5*.$\( (*/($/()+"!$:12)1$)"*+!5)+(.$4D$<&8$'(!)(*+$D(5!U"*UD(5!&

G"!("=(!-$ !(CA>50"*/$ "*$ /2*C>($ 4"!!":(!Z/$ >2#2+$9HQL,$:(!($ A!+1(!$!(>5S(.$+"$2*)>A.($+1($5..20"*5>$%8$ '(!)(*+$ " $ +1($ *(+$ :"!+1$ " $ 45*6abA5/2U45*6$ "!$ >"5*/-$ )!(.2+$ 5))"##".50"*/$ 5*.$ CA5!5*+((/$C!5*+(.$+"$]*5*)($"2>$ 2#'"!+50"*$" $"2>$)"#'5*2(/$:12)1$ 5!($ *"+$ /A4/2.25!2(/$ "!$ 5c>25+(/$ (*C5C(.$ 2*$(*(!CD$ 5*.$ '":(!$ C(*(!50"*$" $ +1($ >(*.2*C$ 45*6&$E1($5..20"*5>$%8$'(!)(*+$HQL$15/$5$*"*U(S+(*.54>($:2*.":$" $+:"$D(5!/$4(C2**2*C$+12/$D(5!$9X2!)A>5!$K"&$7%B$.5+(.$<F$P(4!A5!D$B<%%,&$E12/$:5/$+"$(*/A!($+1($5.(bA5+($/A''>D$" $"2>$5*.$"+1(!$'(+!">(A#$'!".A)+/$2*$ +1($ )"A*+!D$ 2*$ =2(:$ " $ +1($ 1(2C1+(*(.$ '">20)5>$+(*/2"*/$ :2+12*$ +1($ G2..>($ N5/+$ 5*.$ K"!+1$ J !2)5$

9GNKJ,$!(C2"*$'5!0)A>5!>D$2*$L24D5-$d(#(*$5*.$HD!25&J/$" $(*.UTA*($B<%%-$)"!'"!5+($>"5*/$/0>>$5))"A*+(.$ "!$#"!($+15*$15> $" $+1($45*62*C$/D/+(#Z/$+"+5>$>"5*$'"!Y">2"-$*(+$" $VQL$5+$87&W$'(!)(*+$"!$R%-F%?&B$42>>2"*$9A'$ !"#$ 88&<$ '(!)(*+$ "!$ R%-8W7&;$ 42>>2"*$ 5$ D(5!$5C",&$E1($!(#52*2*C$/15!(/$:(*+$+"$#2)!"-$/#5>>$5*.$#(.2A#$(*+(!'!2/(/$ 9GHGN,$ 5*.$JC!2UJC!5$ >(*.2*C$5+$ B7&?$ '(!)(*+$ "!$ RFBB&7$ 42>>2"*$ 9.":*$ !"#$ BF&8$'(!)(*+$ 4A+$ A'$ !"#$ R;@<&8$ 42>>2"*,$ 5*.$ )"*/A#(!$]*5*)($ 5+$ %8&<$ '(!)(*+$ "!$ R8<<&<$ 42>>2"*$ 9/>2C1+>D$.":*$ !"#$%8&W$'(!)(*+$4A+$A'$ !"#$RW@W&?$42>>2"*,&$

O $ +1(/($ +1!(($ #52*$ >"5*$ '"!Y">2"/-$ )"*/A#(!$]*5*)($ 95A+"$ >"5*/-$ )!(.2+$ )5!.$ !()(2=54>(/$ 5*.$!(/2.(*05>$ !(5>$(/+5+($ >"5*/,$*"+54>D$'"/+(.$ /+(5.D$(S'5*/2"*$/2*)($B<<%&$E1($C!":+1$)5*$4($5e!24A+(.$+"$ +1($ C!":2*C$ ]*5*)25>$ >2+(!5)D$ " $ )"*/A#(!/$ "*$=5!2"A/$ )"*/A#(!$]*5*)($'!".A)+/$*"+$ +"$#(*0"*$+1($5e!5)0=($!5+(/$5*.$!('5D#(*+$/)1(#(/$"f(!(.$4D$ 45*6/$ "*$ )"*/A#(!U!(>5+(.$ >"5*/$ +"$ 5AC#(*+$(S2/0*C$ >2#2+(.$ )"!'"!5+($ .(#5*.&$ J/$ " $ (*.UTA*($B<%%-$ )"*/A#(!$ >"5*/$ 5))"A*+(.$ "!$ %8&<$ '(!)(*+$9.":*$ !"#$%8&W$'(!)(*+,$" $+1($+"+5>$>"5*$'"!Y">2"$" $ +1($ 45*62*C$ /D/+(#&$ E1(/($ >"5*/$:(!($ C(*(!5>>D$)A!!(*+$5/$+1($.(>2*bA(*)D$!50"$ A!+1(!$2#'!"=(.$+"$7&F$'(!)(*+$ !"#$F&@$'(!)(*+$5$D(5!$5C"&

R!2=5+($ ."#(/0)$ A*2=(!/5>$ 45*6/$ )"!*(!(.$ +1($42CC(/+$/>2)($" $+1($)"*/A#(!$>"5*$'2($5+$W<&;$'(!)(*+$"!$RB<W&%$42>>2"*$9A'$ !"#$D(5!$5C"Z/$@;&?$'(!)(*+$"!$R%?7&;$42>>2"*,&$\"#(/0)$ +1!23$45*6/$ )5#($5$ )>"/($/()"*.$5+$@W&;$'(!)(*+$"!$R%7W&%$42>>2"*$9.":*$ !"#$@?&W$ '(!)(*+$ 4A+$ A'$ !"#$ R%8;&%$ 42>>2"*,&$ P"!(2C*$45*6$4!5*)1(/$5*.$/A4/2.25!2(/$!"A*.(.$A'$+1($E"'$@$5+$%?&?$'(!)(*+$"!$R;@&%$42>>2"*$ 9.":*$ !"#$%7&;$'(!)(*+$4A+$A'$ !"#$R77&@$42>>2"*,&$

X"*/A#(!$ >"5*/$ :(!($ /0>>$ #"/+>D$ !(/2.(*05>$ !(5>$(/+5+($ >"5*/$ 9INL,$5+$@F&7$'(!)(*+$"!$R%F;&W$42>>2"*$9.":*$ !"#$W<&<$'(!)(*+$4A+$A'$ !"#$R%7@&7$42>>2"*,&$$d(5!U"*UD(5!-$ INL/$ '"/+(.$ 5$ ."A4>(U.2C2+$ C!":+1$ " $%W&B$ '(!)(*+$ :2+1$ ."#(/0)$ +1!23$ 45*6/$ /(!=2)2*C$#"!($ +15*$ 15> $ " $ +1($ !(/2.(*05>$ >"5*$ #5!6(+&$$G"!("=(!-$ +1($bA5>2+D$ " $ !(/2.(*05>$ INL/$ !(#52*(.$.(/2!54>($5/$+1($.(>2*bA(*)D$!50"$ A!+1(!$2#'!"=(.$+"$8&%$'(!)(*+$ !"#$D(5!$5C"Z/$?&?$'(!)(*+&$E12/$:5/$/A''"!+(.$4D$+1($45/2)$5/'2!50"*/$" $#"/+$P2>2'2*"/$


Composition of LoansFor End-Periods Indicated

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 June

2011Consumer Loans MSME and Agri-Agra Loans to Corporate Sector

In P Billions


Composition of Consumer LoansFor End-Periods Indicated

% Share Level NPL Ratio % Share Level NPL Ratio

Consumer Loans 100.0 434.6 9.3 100.0 500.0 7.9

Auto Loans 24.3 105.6 4.8 25.6 128.2 4.4

Credit Card Receivables 26.3 114.2 13.4 24.2 121.2 12.8

Residential Real Estate Loans 40.0 173.7 6.6 39.7 198.4 5.1

Other Consumer Loans 9.5 41.1 20.7 10.4 52.2 16.0

P/Preliminary

June 2010 June 2011P/


Loan Portfolio Structure By Industry SectorAmount in P Billion

As of End-June 2011

3,548.3 100.0%

738.7 20.8 %

581.0 16.4 %

383.5 10.8 %

434.3 12.2 %

338.0 9.5 %

258.9 7.3 %

182.0 5.1 %

90.4 2.5 %

68.7 1.9 %

472.8 13.3 %

June 2011

20.8%

16.4%

10.8%12.2%

9.5%

7.3%

5.1%

2.5%1.9%

13.3%

Financial Intermediation

Real Estate, Construction, Renting & Business Activities

Agriculture, Fishery, Hunting & Forestry

Manufacturing

Wholesale, Retail Trade & Repair of Motor Vehicles

Electricity, Gas &Water

Transportation, Storage & Communication

Other Community, Social & Personal Service Activities

Public Admin & Defense

Others


First Semester 2011


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Bank Compliance to Mandated Lending (Agri-Agra and MSME)For End-Periods Indicated

Agri-Agra Credit

Number of Complying Banks

Total Loans Allocated (P Billion)

10% for Agra Reform

15% for Agri/Other Credit

Total Compliance Ratio (%)

10% for Agra Reform 8.8 8.7

15% for Agri/Other Credit 12.1 11.9

MSME Lending

Number of Complying Banks

Total Loans Allocated (P Billion)

8% for Micro/Small Enterprises

2% for Medium Enterprises

Total Compliance Ratio (%)

8% for Micro/Small Enterprises 8.0 8.7

2% for Medium Enterprises 7.4 7.9

June 2011 June 2010

634

611.8

20.9

650

535.7

226.6

309.0

20.6

258.3

353.6

15.4

594

294.8

154.6

140.2

16.5

534

310.9

162.2

148.7

O!ce of Supervisory Policy Development, Supervision and Examination Sector20

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Other Financial Assets35

='"!*"&-.MW/-&"CI99L" #&"1$-O+-7"'2' &4Z'"+-%&' 4&- "$6:%+:&'" &V0$-.&." 12" C<G" 0&)6&- " !" F9LGH8<I"1+((+!-8E" *)!4" F9LXYC<X" 1+((+!-" $" 2&$)" $7!<" \+-$-6+$("


Selected Asset Quality IndicatorsFor End-Periods Indicated

-

50.0

100.0

150.0

200.0

250.0

300.0

350.0

19971998199920002001200220032004200520062007200820092010

June2011

In P Billion

0.0

20.0

40.0

60.0

80.0

100.0

120.0In Percent

NPLs (LHS)

Loan Loss Reserves (LHS)

NPL Ratio (RHS)

NPL Coverage Ratio (RHS)

-

100.0

200.0

300.0

400.0

500.0

600.0

19971998199920002001200220032004200520062007200820092010

June2011

In P Billion

0.0

10.0

20.0

30.0

40.0

50.0

60.0In Percent

NPAs (LHS)

NPA Reserves (LHS)

NPA Ratio (RHS)

NPA Coverage Ratio (RHS)

0.0

100.0

200.0

300.0

400.0

500.0

600.0

19971998199920002001200220032004200520062007200820092010

June2011

In P Billion

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0In Percent

NPAs (LHS)

Restructured Loans (Performing) (LHS)

Distressed Ratio (RHS)

NPLs and NPL Coverage NPAs and NPA Coverage Ratio Distressed Assets Ratio

____________________ !"#$"%&"'("#)*)$+"(,''-".//0%123"+0.4$.56%4$"17." 8%74+"124+)02".*022924+$":;<#=">2+?224">.4@$".43"02.A"2$+.+2"3212A%/20$".9%)4+23"+%"B' C ">7AA7%4C

D"EF5A)$712"%&"0)0.A".43"5%%/20.612">.4@$C"

G"EF5A)32$"+H2"+%+.A"7412$+924+$-"42+"%&"0)0.A".43"5%%/20.612">.4@$C"<.07.452"?7+H" 24+072$" 74" I.>A2" '" .55%)4+$" &%0" +H2" +%+.A" 7412$+924+$-" 42+" %&" 0)0.A" .43"5%%/20.612">.4@$".$"%&"243JK.05H"(,''C


Comparative NPLs/NPAs, Coverage RatiosAs of End-June 2011

In Percent

NPL NPA

All Banks 3.1% 3.6% 103.9% 56.0%

Domestic Banks 3.4% 3.9% 98.8% 52.8%

Private Domestic UBs 2.3% 3.4% 126.7% 56.7%

Private Domestic KBs 7.1% 5.2% 77.5% 49.9%

Government Banks 2.9% 2.3% 135.4% 84.6%

Thrift Banks 5.9% 7.6% 53.1% 33.4%

Rural Banks 10.4% 11.1% 48.6% 31.3%

Cooperative Banks 8.1% 8.0% 70.6% 52.5%

Foreign Bank Branches/ Subsidiaries1.4% 0.9% 185.0% 171.1%

Foreign Bank Branches 0.6% 0.4% 326.7% 323.3%

Foreign Bank Subsidiaries 6.1% 4.2% 96.4% 87.6%

p/ Preliminary

NPANPLCoverage Ratios

p/

p/

p/

p/


First Semester 2011


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Z7+H" 02*.03$" +%" %+H20" &%027*4" 2F/%$)02$-" >.4@$"029.7423" /0)324+" 74" +H270" 7412$+924+" .561762$" 74"+H2" A7*H+" %&" A74*2074*" $%12027*4" 07$@$" 74" E)0%/2" .43"*2%/%A765.A" )402$+$" ?7+H74" +H2"KE[#" :K733A2" E.$+".43" [%0+H" #&075.=" 02*7%4C" \.4@$M" +%+.A" 2F/%$)02" +%"E)0%/2"3)074*"+H2"$.92"/207%3"?.$"97479.A".+"BN(C'">7AA7%4C"IH2$2"02/02$24+23"'C "/20524+"%&"+%+.A".$$2+$"%&" +H2" >.4@74*" $P$+29" .43" ',CN" /20524+" %&" 5./7+.AC""EF/%$)02" +%" 32>+J$.33A23" B]]Û" :B%0+)*.A-" ]02A.43-"]+.AP-"^02252".43"U/.74="$%12027*4$"?.$"9747$5)A2".+"B'C!">7AA7%4"?H75H"?.$"A2$$"+H.4",C'"/20524+"%&"+%+.A".$$2+$".43",C("/20524+"%&"+%+.A"5./7+.A"%&"+H2">.4@74*"$P$+29C" " _74.AAP-" 2F/%$)02" +%" +H2" KE[#" 02*7%4"&%AA%?23" +H2" $.92" 07$@" .//26+2" .$" +%+.A" 2F/%$)02$"$+%%3".+"B,CD">7AA7%4"?H75H"?.$"A2$$"+H.4"."+24+H"%&"",C'"/20524+"%&"+%+.A".$$2+$".43"9%02"+H.4"H.A&"%&"",C'"/20524+"%&"5./7+.A".$"%&"243J;)42"(,''C

T2>+"$25)0762$"?202"9%$+AP".1.7A.>A2J&%0J$.A2":#_U=".+"D,C'"/20524+"%0"BONNC'">7AA7%4":)/"&0%9"!GCN"/20524+"%0"BO 'C!">7AA7%4"."P2.0".*%=C""IH2"02$+"?202">%%@23-"74"32$524374*"%0320-".$"H2A3J+%J9.+)07+P":ÌK=".+" 'CO"/20524+"%0"BD,DC(">7AA7%4":3%?4"&0%9" CD"/20524+"%0"BD((CN">7AA7%4=-".$")4Q)%+23"32>+"$25)0762$"5A.$$7V23".$" A%.4$" :aTUbc=" .+" NCN" /20524+" %0" B'DOC " >7AA7%4":3%?4"&0%9"''C("/20524+"%0"B'ODC'">7AA7%4=-".$"H2A3J&%0J+0.374*":`_I=".+"RC,"/20524+"%0"B'(OC,">7AA7%4":)/"&0%9"OCO"/20524+"%0"B'(,C,">7AA7%4=".43".$"V4.457.A".$$2+$"32$7*4.+23".+"&.70"1.A)2"+H0%)*H"/0%V+"%0"A%$$"

:T_<Bc=".+",C!"/20524+"%0"BGCG">7AA7%4":3%?4"&0%9",CO"/20524+"%0"B',CN">7AA7%4=C

T2071.612$"$+%%3".+"BGRCG">7AA7%4-"RCO"/20524+"H7*H20"+H.4"P2.0".*%M$"A212A"%&"BG C'">7AA7%4C

EQ)7+P" $25)0762$" ?202" 9%$+AP" 7412$+924+$" 74" 4%4J9.0@2+.>A2"2Q)7+P"$25)0762$":][KEU=".+"!NCO"/20524+"%0" B(,C'" >7AA7%4" :3%?4" &0%9" DGCN" /20524+" %0" B('C,">7AA7%4=-"#_U".+"!RC,"/20524+"%0"B'NC!">7AA7%4":)/"&0%9" NCR"/20524+"%0"B'!CO">7AA7%4=".43"`_I".+"(C "/20524+"%0"B'C,">7AA7%4":3%?4"&0%9" C "/20524+"%0"B'C(">7AA7%4=C"

K.0@2+" 37$+07>)6%4" %&" V4.457.A" .$$2+$" %+H20" +H.4"A%.4$-" 42+" %0" /%0L%A7%" 7412$+924+$" >.02AP" 5H.4*23".$"/071.+2"3%92$65")47120$.A">.4@$"$6AA"5%042023"+H2"A7%4M$" $H.02" .+" DNC'" /20524+" %0" B'-,,OCR" >7AA7%4" :)/"&0%9" DRCG" /20524+" %0" BNO CR" >7AA7%4=C" #" &.0" $25%43".43" +H703" ?202" *%1204924+" >.4@$" .+" 'NCR" /20524+"%0" B OCR" >7AA7%4" :)/" &0%9" 'NC " /20524+" %0" B (,C!">7AA7%4=" .43" /071.+2" 3%92$65" 5%992057.A" >.4@$" .+"RC,"/20524+"%0"B' GCN">7AA7%4":3%?4"&0%9"RC "/20524+"%0"B' OCD">7AA7%4=C"K2.4?H7A2-"&%027*4">.4@">0.45H2$".43"$)>$737.072$".55%)4+23"&%0"OCR"/20524+"%0"B' (C(">7AA7%4":3%?4"&0%9"RCR"/20524+"%0"B'!DC!">7AA7%4="%&"+H2">.4@74*"$P$+29M$"/%0L%A7%"7412$+924+$-"42+C

\P" 5%)4+20/.0+P-" +H2" >)A@" %&" V4.457.A" .$$2+$" %+H20"+H.4" A%.4$-" 42+" ?202" 7$$)23" >P" 02$7324+$" .+" RDC("/20524+"%0"B'-!!RC,">7AA7%4":)/"&0%9"R CD"/20524+"%0"B'- N'CR">7AA7%4"."P2.0".*%=C"W2$7324+"5%)4+20/.062$"745A)32"+H2"[.6%4.A"^%1204924+-"A%5.A"*%1204924+")47+$"%0"câ$-"*%1204924+"%?423".43d%0"5%4+0%AA23"5%0/%0.6%4$"%0"^Xbb$-"\UB-">.4@$-"5%0/%0.6%4$".43"7437173).A$C""IH2">.A.452"?202"H2A3">P"4%4J02$7324+$".+" '!CR" /20524+" %0" B(D'C " >7AA7%4" :3%?4" &0%9" 'GCD"/20524+" %0" B(O!C," >7AA7%4=C" " [%4J02$7324+$" 02&20" +%"&%027*4" 524+0.A" %0" *%1204924+" >.4@$-" /)>A75" $25+%0"24662$-">.4@$-"5%0/%0.6%4$".43"7437173).A$C

#$"+%"5)00245P-"."A.0*2"/0%/%06%4"%&">.4@$M"/%0L%A7%"7412$+924+$"?202"$6AA"74"/2$%".55%)4+$C"IH2"02$+"?202"A%3*23"74"E_bTad_bTa".43"&%027*4"02*)A.0".55%)4+$C"

A large proportion of banks’ portfolio investments were still in peso accounts.

The rest were lodged in EFCDU/FCDU and foreign regular accounts.

____________________ O"U%12027*4"32>+"$25)0762$"7$$)23">P"+H2"W2/)>A75"%&"+H2"BH7A7//742$"+H.+".02"324%974.+23"74"&%027*4"5)00245PC


Deposit Liabilities

#$" %&" 243J;)42" (,''-" 32/%$7+" A7.>7A762$" $+%%3" .+"BD-'DDCR">7AA7%4-"RCD"/20524+"H7*H20" +H.4"P2.0".*%M$"A212A"%&"B!-OD!C'">7AA7%4C"IH2"*0%?+H-".A>27+"9%32$+-"?.$"74375.612"%&"5%464)23"5%4V32452"74"+H2">.4@74*"$P$+29" .973" *A%>.A" )4520+.7462$" .43" *0%?74*"5%9/266%4"&0%9".A+204.612"7412$+924+"74$+0)924+$"$)5H" .$" 02+.7A" +02.$)0P" >7AA$-" ?2.A+H" 9.4.*2924+"+0)$+"/0%3)5+$".43"%+H20"1.07.>A2"74$)0.452"/0%3)5+$"?H75H" .AA" /0%97$2" +%" /0%1732" >2e20" P72A3" +H.4" +H2"/021.7A74*".120.*2"$.174*$"32/%$7+"0.+2$"%&"'CG"/20524+"/20".44)9C"T2/%$7+"0.+2$"$7*47V5.4+AP"325A7423"&0%9"OC!"/20524+"A212A"74"(,,,C

T)074*"+H2"$292$+20"74"02172?-"+%+.A"32/%$7+"A7.>7A762$".55%)4+23"&%0"DOCD"/20524+":3%?4"&0%9"G(C "/20524+"."P2.0".*%="%&"+H2"5%)4+0PM$"25%4%975"%)+/)+C

K.0@2+" 37$+07>)6%4" %&" 32/%$7+$" >.02AP" 5H.4*23" .$"/071.+2"3%92$65")47120$.A">.4@$"$6AA"H2A3"+H2"A7%4M$"$H.02"%&"32/%$7+"A7.>7A762$".+"G(CO"/20524+"%0"B -( (C,">7AA7%4" :)/" &0%9" G(C," /20524+" %0" B(-N!RCR" >7AA7%4=C""IH2" 02$+" %&" +H2" I%/" " H.3" +H2" &%AA%?74*" $H.02$" 74"32$524374*"%0320f"*%1204924+">.4@$".+"''CN"/20524+"%0" BG''C'" >7AA7%4" :)/" &0%9" ''C'" /20524+" %0" BD(RC'">7AA7%4=".43"&%027*4">.4@">0.45H2$".43"$)>$737.072$".+"NC'"/20524+"%0"B!O,C'">7AA7%4":3%?4"&0%9"NCG"/20524+">)+")/"&0%9"B!DRC(">7AA7%4=C""

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aU"3%AA.0" .$" /20527123"?2.@42$$2$" %&" +H2"aU" V4.457.A"$P$+29".43">)3*2+"32V57+"5%45204$"/20$7$+23C""

IH2" >)A@" %&" /2$%" 32/%$7+" A7.>7A762$" ?202" /A.523"9%$+AP" 74" A2$$" 74+202$+" $24$7612" $H%0+20J+209"329.43-"42*%6.>A2"%0320"%&"?7+H30.?.A":[XZ=".43"$.174*$" 32/%$7+$" .+" O'C!" /20524+" :3%?4" &0%9" O'CN"/20524+" ." P2.0" .*%=C" ]4+202$+J$24$7612"692"32/%$7+"A7.>7A762$" 9.32" )/" +H2" 029.7474*" $H.02" .+" (RCG"/20524+":)/"&0%9"(RC'"/20524+=C"K2.4?H7A2-"&%027*4"5)00245P" 32/%$7+" A7.>7A762$" ?202" 9%$+AP" 74" 74+202$+"$24$7612"692"32/%$7+$".+"D CR"/20524+" :3%?4"&0%9"DRCR"/20524+=C""IH2"02$+"?24+"+%"A2$$"74+202$+"$24$7612"$.174*$" 32/%$7+$" .+" !GC(" /20524+" :)/" &0%9" !'C("/20524+=C

#973"5%45204$"%4"5./7+.A"g7*H+".+"+H2"%4$2+"%&"$+0%4*"5./7+.A"g%?$"&0%9"+0%)>A23".31.4523"25%4%972$"+%"2920*74*"9.0@2+$"745A)374*"+H2"BH7A7//742$-"32/%$7+"A7.>7A762$" 029.7423" $+.>A2" .$" 02$7324+$" 5%464)23"+%" H%A3" +H2" >)A@" %&" /2$%" 32/%$7+" A7.>7A762$" .+" NNC!"/20524+"%0"B!-,(,C,">7AA7%4":)/"&0%9"NNC("/20524+"%0"B -DR,C," >7AA7%4=" ?H7A2" 4%4J02$7324+$" 5./+)023" +H2"029.7474*" ,CG" /20524+" %0" B(!C!" >7AA7%4" :3%?4" &0%9",CR" /20524+" %0" B(NC(" >7AA7%4=C" " \.4@$M" _bTa" >%%@$"+024323" 5A%$2AP" ?7+H" +H270" /2$%" 5%)4+20/.0+$" ?7+H"02$7324+$".55%)464*"&%0"NOCR"/20524+":)45H.4*23="%&"+%+.A"_bTa"32/%$7+"A7.>7A762$C

Capitalization

\.4@$"029.7423"?2AAJ5./7+.A7h23".$"5./7+.A".32Q).5P"0.6%" :b#W=-" %4" ." 5%4$%A73.+23" >.$7$-" $+%%3" .+" 'OC!"/20524+".43"%4"."$%A%">.$7$".+"'GCD"/20524+".$"%&"243JK.05H"(,''C"#"A.0*20"/0%/%06%4"%&"+H7$"?.$"42+"I720"'" 5./7+.A" .+" '!C(" /20524+C"X120.AA-" +H2" 5)0024+" A212A"%&"5./7+.A7h.6%4"%&"+H2">.4@74*"$P$+29"?.$"$6AA"?.P".>%12"+H2"\UB"97479)9"02*)A.+%0P"02Q)702924+"%&"',"/20524+".43"+H2"\.4@"&%0"]4+204.6%4.A"U2eA2924+$":\]U=" $+.43.03" %&" R" /20524+C" IH2" 79/0%12924+" 74"+H2" %120.AA" $%A1245P" 0.6%"?.$" %4" .55%)4+" %&" &.$+20"2F/.4$7%4" %&" Q).A7&P74*" 5./7+.A" %120" 07$@" ?27*H+23".$$2+$C"


Deposit MixFor End-Periods Indicated

0.0

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

3,500.0

4,000.0

4,500.0

June 2010 June 2011

Short-Term Deposits (Demand, NOW and Savings)

Long Term Deposits (Time)

Peso Deposits

71.9%

28.1%

71.4%

28.6%

In P Billion

0.0

200.0

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0

June 2010 June 2011



In P BillionForeign Currency Deposits

P 3,609.2 Billion

P 4,044.4 BillionP 1,144.9 Billion P 1,11.4 Billion

41.2% 46.2%

58.8% 53.8%


Distribution of DepositsFor End-Periods Indicated

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

June2011

Private Domestic UBs Private Domestic KBs Government Banks

Foreign Branches/Subsidiaries Domestic Thrift Banks Rural/Cooperative Banks


First Semester 2011


Philippine Banking System: Capital Adequacy Ratio (CAR)

2007 2008 2009 2010 2007 2008 2009 2010

(In P Billion)

467.2 511.8 564.1 666.4 701.3 463.9 490.9 543.0 637.8 672.8

Net Tier 1 409.6 465.5 514.2 607.6 642.2 433.1 483.2 537.5 632.2 667.1

102.0 129.1 150.7 155.1 152.1 105.5 128.5 152.3 156.5 153.6

91.4 83.5 92.1 108.0 108.6 13.8 14.7 11.0 10.8 11.1

477.8 557.4 622.7 713.5 744.8 555.5 604.6 684.4 783.4 815.3

3,247.7 3,780.1 4,193.3 4,461.2 4,519.8 3,523.3 3,902.4 4,336.8 4,626.4 4,687.7

(In Percent)

Capital Adequacy Ratio 14.7 14.7 14.9 16.0 16.5 15.7 15.5 15.8 16.9 17.4

Net Tier 1 Ratio 12.6 12.3 12.3 13.6 14.2 12.9 12.4 12.4 13.7 14.2

Solo

March

2011

March

2011

Consolidated

Risk Weighted Assets (RWA) -

net

Tier 1

Tier 2

Deductions

Qualifying Capital

!"#$%&'"#(&)()&*)+#),#-)&"#"./012#0+#3%+456#-%(01%$#51&/-1/&"#)7"&"8#%8"./%1"#(&)1"-*)+#,)&#()1"+*%$#$)55"5# 0+# *9"5# ),# "-)+)90-# 8):+1/&+5;# <%5"8# )+#%# 509($"# 509/$%*)+# ),# -&"801# &054# "=()5/&"># 3%+45#!%8#5/351%+*%$#-%(01%$#3/7"&#%'%0+51#$)55#),#?@AB;A#30$$0)+#%5#),#"+8CD/+"#EAFF;

G5#),#"+8CD/+"#EAFF>#1)1%$#-%(01%$#%--)/+15HI stood at

?IJJ;@#30$$0)+>#F@;H#("&-"+1#!0'!"&#1!%+#1!"#?KHE;@#30$$0)+#&"-)&8"8#%#2"%&#%');#<%+45#%(("%&"8#1)#3"#:"$$C(&"(%&"8#,)&#1!"#-)/+1&265#"%&$2#%8)(*)+#),#<%5"$#LLL#%5#1!"2#-)+*+/"#1)#3/$4#/(#0+#1"&95#),#-%(01%$0M%*)+;#N("-0O-%$$2># 1!"# <N?# 51%&1"8# 0+-)&()&%*+'# -"&1%0+#(&)P050)+5#),#<%5"$# LLL# ,)&# 0+-$/50)+#),#+)+C-)99)+#

"./012#-)9()+"+15#0+#3%+456#-%(01%$#3%5"#%5#%#3%505#,)&# 8"1"&90+0+'# -%(01%$# 0+51&/9"+15# 1!%1# -%+# 3"#-)/+1"8# %5# &"'/$%1)&2# -%(01%$# ,&)9#F# D%+/%&2# EAFF#)+:%&85#QR0&-/$%&#S);#KAT#8%1"8#FA#D%+/%&2#EAFFU;

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

G-&)55# 3%+40+'# '&)/(5># /+0P"&5%$# %+8# -)99"&-0%$#3%+45# -)+*+/"8# 1)# ()51# 1!"# !0'!"51# -)9($0%+-"#&%*)#),#TJ;K#("&-"+1# QHB#3%+45U# ,&)9#TK;J#("&-"+1#QHK#3%+45U#%#2"%&#%');##X"%+:!0$">#1!&0W#3%+45#5*$$#$%''"8#3"!0+8#-)9(%&"8#1)#)1!"&#5/3'&)/(5#%5#1!"#0+8/51&2#5*$$#!%8#1!"#$):"51#-)9($0%+-"#&%*)#%1#KT;E#("&-"+1#Q@K#3%+45U#,&)9#KH;A#("&-"+1#Q@J#3%+45U;

Selected Contingent Accounts

Trade-Related Contingent Accounts

!"#3%+40+'#5251"965#1)1%$#1&%8"C&"$%1"8#-)+*+'"+1#%--)/+15# 51))8# %1# ?BI;T# 30$$0)+># B;B# ("&-"+1# !0'!"&#1!%+#2"%&#%')65#$"P"$#),#?BJ;B#30$$0)+;# !"#'&):1!#:%5#5/(()&1"8#32#1!"#-)/+1&265#09(&)P0+'#1&%8"#3%$%+-"5#%5#3)1!#"=()&15#%+8#09()&15#9%+%'"8#1)#'&):#32#A;I#("&-"+1# %+8# K;J# ("&-"+1># &"5("-*P"$2># 8"5(01"# 1!"#'$)3%$# "-)+)90-# 5$):8):+;# Y"508"+15# %--)/+1"8#,)&# IF;I# ("&-"+1# ),# 1)1%$# 1&%8"C&"$%1"8# -)+*+'"+1#%--)/+15#:!0$"#1!"#3%$%+-"#:"+1#1)#+)+C&"508"+15;

!"# 3/$4# ),# 1!"# 3%+40+'# 5251"965# 1&%8"C&"$%1"8#-)+*+'"+1#%--)/+15#5"-/&"8#32#&"508"+15#:"&"#5*$$#,)&"0'+#-)99"&-0%$#$"V"&5#),#-&"801#QZRU#)/151%+80+'#%1#@B;@#("&-"+1#)&#?HF;I#30$$0)+#Q/(#,&)9#@J;I#("&-"+1#)&#?EI;H#30$$0)+#%#2"%&#%')U;# !"5"#:"&"#"55"+*%$$2#/+/*$0M"8#3%$%+-"5#),#ZR5#055/"8#0+#,%P)&#),#,)&"0'+#3"+"O-0%&0"5# ,)&# 1!"# 09()&1%*)+# ),# '))85# %+8[)&#(%29"+1#),#5"&P0-"5#%3&)%8;#N("-0O-%$$2>#1!"#3%+40+'#5251"965#,)&"0'+#-)99"&-0%$#ZR5#-)9"#0+#1!"#,)&9#),#


Status of Banks' Compliance with Prescribed Minimum Amount of Capital

2008 2009 2010 2010 2011

783 785 758 773 739

Universal and Commercial Banks 38 38 38 38 38

Thrift Banks 73 73 73 74 72

Rural/Cooperative Banks 672 674 647 661 629

647 601 620 518 620

Universal and Commercial Banks 36 36 36 37 36

Thrift Banks 54 54 58 54 57

Rural/Cooperative Banks 557 511 526 427 527

End-June

B.xxBanks with Capital Equal to or in Excess of

B.xxthe Minimum Amount Required

A. Number of Operating Banks

End-December

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Capital Buffer Against Potential LossesAs of End-June 2011

In P Billion In P Billion

Net Tier 1* 667.1 NPL 108.8

LLR 113.0 ROPA 165.3

Capital Protection (Tier 1 + LLR) 780.1 Potential Credit Loss from NPL+ROPA 274.1

Capital Buffer 506.0 % of Potential Credit Loss over Capital Protection 35.1

*As of end-March 2011


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Bank Guarantees

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Bank Commitments

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Derivatives

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Improved market sentiment on positive macroeconomic and banking data including

BSP’s liberalized rules on derivatives trading

fueled the upbeat trading of derivatives instruments during the review period.

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First Semester 2011


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Universal and Commercial Banks

Universal and Commercial Banking System

Market Structure of Assets

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

June2011

Private Domestic - UBs Private Domestic - KBs

Government Banks Foreign Bank (Branches & Subsidiaries)


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Top Five Universal and Commercial Banks

Based on Published Balance Sheet as of 30 June 2011

Name of Bank P Billion Rank Name of Bank P Billion

1 Banco De Oro Unibank Inc. 1,009.7 1 Banco De Oro Unibank Inc. 589.1

2 Metropolitan Bank & TCO 782.5 2 Bank of the Phil Islands 346.4

3 Bank of the Phil Islands 698.0 3 Metropolitan Bank & TCO 322.9

4 Land Bank of the Philippines 609.5 4 Land Bank of the Philippines 272.2

5 Phil National Bank 332.8 5 Citibank, N.A. 136.4

Total 3,432.5 Total 1,667.1

% Share 54.7 % Share 54.5

P Billion

1 Banco De Oro Unibank Inc. 787.2 1 Metropolitan Bank & TCO 95.8

2 Metropolitan Bank & TCO 625.0 2 Banco De Oro Unibank Inc. 88.3

3 Bank of the Phil Islands 561.3 3 Bank of the Phil Islands 78.8

4 Land Bank of the Philippines 479.8 4 Land Bank of the Philippines 64.1

5 Phil National Bank 246.8 5 Development Bank of the Phil 38.6

Total 2,700.1 Total 365.6

% Share 59.0 % Share 49.0

Rank

Rank Name of Bank

Assets Loans

Deposit Liabilities Capital Accounts

Rank Name of Bank P Billion


First Semester 2011


+# !6,( ='& #$( 7!$( '!&6+:( ]#&6-1%'#4( ( )&6,.&6@(-&+(&(+!'%,(7!5$21(='& #$(%6(&''(.&+#+(-1%'#(C_U4(./(&6,( '&$0#4( $&6@#,( <31( #I #=2( %6( '!&6+( &6,( &=%2&'(& !562+4(-1% 1(-&+( &=25$#,(./(*%?.&6@(&6,(XUC4($#+=# ?G#'/:

;G#$&''4( 21#( +1&$#( !7( 21#( Q!=( L( 56%G#$+&'( &6,( !""#$ %&'( 2!( 21#( %6,5+2$/N+( 2!2&'( &++#2+4( '!&6+4(,#=!+%2( '%&.%'%?#+( &6,( &=%2&'( & !562+(-%,#6#,( 2!(LF:K(=#$ #62(E5=(7$!"(/#&$(&0!N+(L8:O(=#$ #62H4(LF:L(=#$ #62( E5=( 7$!"( L8:J( =#$ #62H4( L9:O( =#$ #62( E5=(7$!"(LL:K(=#$ #62H(&6,(F9:O(=#$ #62(E5=(7$!"(FB:L(=#$ #62H4($#+=# ?G#'/:(

Operating Network

R+( !7( #6,>S56#( AODD4( 21#( 65".#$( !7( !=#$&?60(56%G#$+&'( &6,( !""#$ %&'( .&6@+( +2!!,( &2( 8B:(R'21!501(21#$#(-&+(6!( 1&60#(%6(65".#$(!7(='&/#$+(%6( 21#( %6,5+2$/( +%6 #( #6,>S56#( AOOK4( 21#( 6#2-!$@(!7(.$&6 1#+c!21#$(!f #+( !6?65#,(2!(#I=&6,(&6,(-%,#6( !G#$( 21#( /#&$+:( R+( !7( #6,>S56#( AODD4( 2!2&'(6#2-!$@(-&+(1%01#$( ./( DJB( 2!( F4KAJ( 7$!"(F4LLB( &(/#&$(&0!:

R !$,%60'/4(21#(%6,5+2$/( &=25$#,(21#('%!6N+(+1&$#(%6(21#(!G#$&''(!=#$&?60(6#2-!$@(!7(21#(.&6@%60(+/+2#"(-1% 1( &+( !7( #6,>S56#( AODD( +2!!,( &2( L8:F( =#$ #62(G+:(21#(=$!=!$?!6(!7($5$&'(&6,( !!=#$&?G#(.&6@+(&2(8D:D(=#$ #62(&6,(21$%3(.&6@+(&2(DL:L(=#$ #62:(

U/(+5.0$!5=4(21#(%6,5+2$/( !6+%+2#,(!7(AO(56%G#$+&'(.&6@+(E7$!"(D9(.&6@+(&(/#&$(&0!H(&6,(DB( !""#$ %&'(.&6@+( E7$!"( 21#( =$#G%!5+( D9H:FA( M6 '5,#,( 56,#$(56%G#$+&'( .&6@+( -#$#( DD( =$%G&2#( ,!"#+? ( .&6@+4(21$##(0!G#$6"#62(.&6@+(&6,(+%I(.$&6 1#+(!7(7!$#%06(.&6@+( -1%'#( !""#$ %&'( .&6@+( !G#$#,( #%012(.$&6 1#+( !7( 7!$#%06( .&6@+4( #%012( =$%G&2#( ,!"#+? (.&6@+(&6,(2-!(+5.+%,%&$%#+(!7(7!$#%06(.&6@+:

]#&6-1%'#4( 21#( 65".#$( !7( !G#$+#&+( .$&6 1#+( !7(+#G#6( =$%G&2#( ,!"#+? ( 56%G#$+&'( .&6@+( $#"&%6#,(56 1&60#,( &2( 8F( 7$!"( #6,>S56#( AODO:( Q1#+#(.$&6 1#+(-#$#(+%25&2#,("!+2(=$!"%6#62'/(%6( !562$/(,#+?6&?!6+( !7( P%'%=%6!("%0$&62(-!$@#$+a( AO( %6( 21#(R+%&>(C& %< 4(<G#(%6(^5$!=#4(+%I(%6(_!$21(R"#$% &(&6,(21$##(%6(21#(]%,,'#(^&+2:

)!!@%60( &2( 21#( 6&?!6-%,#( ,%+2$%.5?!6( !7( .&6@%60(!f #+4( -%21( 21#( #I #=?!6( !7( R'>R"&6&1( M+'&"% (U&6@(-1% 1(%+('! &2#,(%6(]%6,&6&!4(&''(1#&,(!f #+(E-%21(A4ADA(.$&6 1#+c!21#$(!f #+H(!7(56%G#$+&'(&6,( !""#$ %&'(.&6@+(&$#('! &2#,(%6(21#(_&?!6&'(*&=%2&'(Z#0%!6(E_*ZH($#=$#+#6?60(FK:L(=#$ #62(!7(21#(2!2&'(65".#$( !7( ,!"#+? ( .&6@%60( !f #+:( Q1#( !21#$($#0%!6+( -1% 1( =!+2#,( +%06%< &62( 6#2-!$@( +1&$#+(-#$#a(Z#0%!6(Mg>R(E*R)RURZh;_H(&2(DO:J(=#$ #62(!$(LOA(.&6@%60(!f #+4(Z#0%!6(MMM(E*#62$&'()5W!6H(&2(B:8(=#$ #62(!$(89A(!f #+4(Z#0%!6(gMM(E*#62$&'(g%+&/&+H(&2(J:F(=#$ #62(!$(8O8(!f #+4(&6,(Z#0%!6(gM(Ei#+2#$6(g%+&/&+H(&2(L:O(=#$ #62(!$(A8B(!f #+:((Q1#($#"&%6%60(AA:A(=#$ #62(!$(D4OFJ(!f #+(-#$#(,%+2$%.52#,(&"!60(21#($#+2(!7(21#($#0%!6+:(EQ&.'#(DFH:

Y6%G#$+&'( &6,( !""#$ %&'(.&6@+(&'+!(=$!G%,#,( 21#(-%,#+2( RQ]( 6#2-!$@( !"=&$#,( 2!( !21#$( .&6@%60( &2#0!$%#+:( ;7( 21#( 94BFK( RQ]+( 6&?!6-%,#( &2( #6,>S56#(AODD4(BJ:A(=#$ #62(!$(B4FB9(56%2+( E5=(./(BA9(RQ]+( 7$!"( K4JJO( 56%2+( &2( #6,>S56#( AODOH( -#$#(!-6#,(./(56%G#$+&'(&6,( !""#$ %&'(.&6@+:

]!+2(!7(21#+#(RQ]+(-#$#('! &2#,(!6>+%2#(!$(-%21%6(.&6@(=$#"%+#+(&2(J8:O(=#$ #62(!$(L48LO(56%2+(E,!-6(7$!"(JL:B(=#$ #62(.52(5=(7$!"(L4O8B(56%2+H(-1%'#(21#($#+2(-#$#(+2&6,>&'!6#(RQ]+(&2(8K:O(=#$ #62(!$(84D89(E5=(7$!"(8F:A(=#$ #62(!$(A4JAA(56%2+H:(Q1#+#(+2&6,>&'!6#( RQ]+( -#$#( 5+5&''/( '! &2#,( &'!60( 2$&6+=!$2(2#$"%6&'+4( !6G#6%#6 #( +2!$#+4( +1!==%60( "&''+4(

U/KBs

53.4%

TBs

15.5%

R/CBs

31.1%


Share to Physical NetworkAs of End-June 2011

_____________________________________________________FA((X#5+2+ 1#(U&6@(Rj(E=$#G%!5+'/(&( !""#$ %&'(.&6@H(-&+(21#('&2#+2(&,,%?!6(2!(21#(

=!!'(!7(56%G#$+&'( .&6@+( 7!''!-%60( 21#(&==$!G&'(!7( %2+( 56%G#$+&'( .&6@( '% #6+#(!6(DB(

]&/(AODD:

R/CBs

2.4%TBs

11.4%

U/KBs

86.2%


Share to ATM NetworkAs of End-June 2011


!"#$%&"'() *+,-+ !.&/) 01&+2"!$) &'13+!&) 1!.)+'4$%)- 52"*)-21*$&6

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9.7%8.7% 8.8% 8.5% 7.7%

6.8%5.4%

3.4%5.4%

4.2%3.7%

2.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006 2007 2008 2009 2010 Jun-2011

-5%

0%

5%

10%

15%

20%

25%

Net Interest Income (LHS) Non-Interest Income (LHS)Average Bank Lending Rates (RHS) Core Lending Growth (RHS)Treasury Bill Rate (91-Day) (RHS)


Net Interest Income vs. Non-Interest IncomeFor the end of Periods Indicated

_____________________________________________________BE <4$) -$&+V.+221%) $a*41!0$) %1'$) 1#$%10$.) 7BE6QSYd\gP) "!) '4$) &$*+!.) h 1%'$%) +8)

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h 1%'$%) "!)%$#"$>)>$%$)'4$)& &'1"!$.) "!i+>&)8%+,)+#$%&$1&)^"2"-"!+&Z) %$,"b1!*$&/)

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QTPP)J121!*$)+8)71(,$!'&)A$-+%'H


First Semester 2011


%"&9)1#$%&"+!/)&4("!0)1>1()8%+,)%"&9()'%$1& %(V%$21'$.)+-$%13+!&)1!.)%$#$%3!0)51!9"!0)1*3#"3$&)'+)2$!."!06)e %"!0) '4$) -$19) +8) '4$) 02+512) `!1!*"12) ' %,+"2) "!)QTTG/)*+%$)2$!."!0)-+&'$.)'4$)4"04$&')$a-1!&"+!)+8)QB6C)&"!*$)'4$)PRRF);&"1!)`!1!*"12)*%"&"&6)c$!*$/)'4$)&41%$) +8) !$') "!'$%$&') "!*+,$) 101"!&') !+!V"!'$%$&')"!*+,$)>".$!$.). %"!0)'4"&)-$%"+.6

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c+>$#$%/) "!) '4$) `%&') 4128) +8) QTPP/) $a*$&&"#$)2"h "."'() "!) '4$),1%9$') %$& 2'$.) '+)+#$%& 5&*%"-3+!)+8) 0+#$%!,$!') &$* %"3$&) 5%"!0"!0) '4$) 1#$%10$)5$!*4,1%9)<V5"22)"!'$%$&')%1'$&), *4)2+>$%)'41!)'4$)

1#$%10$)2$!."!0)%1'$&6)c$!*$/)51!9&)*41!!$2$.)'4$"%)8 !.&) 51*9) '+) 2$!."!0) %$& 23!0) '+) '4$) T6S) -$%*$!').$*2"!$) "!) "!'$%$&') "!*+,$) 8%+,) `!1!*"12) 1&&$'&)+'4$%) '41!) 2+1!&6) ?$#$%'4$2$&&/) "!'$%$&') $1%!"!0&)8%+,) `!1!*"12) 1&&$'&) %$,1"!$.) '4$) &$*+!.) ,+&')",-+%'1!')&+ %*$)+8) "!'$%$&') "!*+,$)1**+ !3!0) 8+%)EP6E)-$%*$!')D.+>!)8%+,)EQ6B)-$%*$!'H)&41%$)+8)'4$)"!. &'%(Z&)'+'12)"!'$%$&'V51&$.)%$#$! $&6

;&) %"&9) 1#$%&"+!) 1,+!0) &$#$%12) !"#$%&12) 1!.)*+,,$%*"12) 51!9&) -$%&"&'$./) 1) &"0!"`*1!') -+%3+!)+8)"!'$%$&')$1%!"!0&). %"!0)'4$)-$%"+.)>$%$)&+ %*$.)8%+,)2$&&)%"&9"$%)1*3#"3$&/)"6$6/)-21*$,$!'&)"!)&-$*"12).$-+&"') 1**+ !'&) D\e;&H) >"'4) J\76) ]!'$%$&') "!*+,$)$1%!$.) 8%+,) .$-+&"') 1**+ !'&) >"'4) J\7/) ,+&'2()\e;&/) $a-1!.$.) 5() PC6F) -$%*$!') D7P6S) 5"22"+!H) '+)7PT6S)5"22"+!)8%+,)7R6T)5"22"+!)&1,$)-$%"+.)21&')($1%)1!.)1**+ !'$.)8+%)1)&"0!"`*1!')F6B)-$%*$!')D -)8%+,)C6S) -$%*$!'H) &41%$) +8) '+'12) "!'$%$&') "!*+,$) +8) '4$)"!. &'%(6

=$1!3,$/) '4$) 0$!$%12) .$*2"!$) "!) "!'$%$&') %1'$&)*+ -2$.)>"'4) '4$)4"04).$0%$$)+8) *+!`.$!*$)5() '4$).$-+&"3!0) - 52"*) $!152$.) '4$) "!. &'%() '+) %$. *$)'+'12) "!'$%$&') $a-$!&$&) "!) '4$) `%&') 4128) +8) QTPP)5() Q6E) -$%*$!') D7P6P) 5"22"+!H) '+) 7BS6R) 5"22"+!) 8%+,)7BF6T)5"22"+!)&1,$)-$%"+.)21&')($1%6)]!'$%$&')-1".)+!).$-+&"'&) %$,1"!$.) '4$) 21%0$&') *+,-+!$!') +8) '+'12)"!'$%$&')$a-$!&$&)1')FF6E)-$%*$!')+%)7ES6S)5"22"+!)D -)8%+,)FF6T)-$%*$!')+%)7EC6Q)5"22"+!)"!)'4$)&1,$)-$%"+.)21&')($1%H6

?+!V"!'$%$&')"!*+,$)1.#1!*$.)5()PC6F)-$%*$!')D7G6P)5"22"+!H)"!)'4$)`%&')4128)+8)QTPP)8%+,)1)0%+>'4)+8)PB6T)-$%*$!') D7C6T) 5"22"+!H) "!) '4$) &1,$) -$%"+.) 21&') ($1%6)<4$)"!. &'%()>1&)152$)'+),19$)&"0!"`*1!')01"!&)8%+,)"'&) 8+%$"0!) * %%$!*() -+&"3+!) 0"#$!) '4$) 1-%%$*"13+!)+8)'4$)74"2"--"!$)7$&+)+#$%)'4$)d\)e+221%6))A$#$! $&)8%+,) 8+%$"0!) $a*41!0$) ,+#$.) '+) -+&"3#$) '$%%"'+%()1')7G6T)5"22"+!)8%+,)8+%$"0!)$a*41!0$)2+&&$&)+8)7P6T)5"22"+!)"!)'4$)&1,$)-$%"+.)21&')($1%6


Sources of Growth in Interest IncomeFor the end of Periods Indicated

(In Billion Pesos)

(7.00)

(5.00)

(3.00)

(1.00)

1.00

3.00

5.00

7.00

Loans Financial Assets Due From BSP Others

END-JUNE 2011

P4.18 Billion

END-JUNE 2010

(P2.76 Billion)


Sources of Growth in Non-Interest IncomeFor the end of Periods Indicated

(In Billion Pesos)

(50.00)

(40.00)

(30.00)

(20.00)

(10.00)

0.00

10.00

20.00

30.00

40.00

50.00

Trading Income Foreign Exchange Profit/(Loss)Other Income Fee-based incomeDividend Income

END-JUNE 2010

P5.99 BillionEND-JUNE 2011

P8.14 Billion


c+>$#$%/)'4$)-%$*$."!0)01"!)>1&)+W&$')5()'4$)4 0$)%$. *3+!)"!)'%1."!0)"!*+,$)5()FS6B)-$%*$!')'+)7Q6G)5"22"+!) 8%+,) 7PP6S) 5"22"+!) &1,$) -$%"+.) 21&') ($1%6)<%1."!0) 1*3#"3$&) +8) '4$) !"#$%&12) 1!.) *+,,$%*"12)51!9&) &2+>$.) .+>!) %$& 23!0) 8%+,) '4$) 0$!$%12).$*2"!$) "!) "!'$%$&')%1'$&)1&)>$22)1&) '4$)%"&9)1#$%&"+!)5%+ 04')15+ ')5() !*$%'1"!3$&)"!)'4$)02+512)`!1!*"12),1%9$'&6))]!)-1%3* 21%/)"!*+,$)8%+,)&12$Y%$.$,-3+!)+8) `!1!*"12) .$%"#13#$&) D8 ' %$&/) +-3+!&/) 8+%>1%.&)1!.)&>1-&H)1!.)0+#$%!,$!')&$* %"3$&) ) 8$22)5()CB6Q)-$%*$!') D7C6G) 5"22"+!H) ) 1!.) PPF6C) -$%*$!') D7P6C)5"22"+!H/)%$&-$*3#$2(6

=$1!>4"2$/) !+!V"!'$%$&') "!*+,$) >1&) 8 %'4$%) 2"l$.)5()'4$)"!*%$1&$&)"!)DPH)-%+`'&)8%+,)&12$Y%$.$,-3+!Y.$%$*+0!"3+!) +8) !+!V'%1."!0) `!1!*"12) 1&&$'&Y2"15"2"3$&) 5() SQ6P) -$%*$!') D7B6T) 5"22"+!H) '+) 7PP6F)5"22"+!m) DQH) 8$$V51&$.) "!*+,$) 5() B6E) -$%*$!') D7T6R)5"22"+!H)'+)7QP6C)5"22"+!m)DEH)."#".$!.)"!*+,$)5()SG6C)-$%*$!') D7T6C) 5"22"+!H) '+) 7P6C) 5"22"+!) 1!.) DBH) +'4$%)!+!V"!'$%$&')"!*+,$)5()EF6R)-$%*$!')D7Q6P)5"22"+!H)'+)7F6C)5"22"+!)"!*+,$6)

]!)'$%,&)+8)&41%$/)5 29)+8)!+!V"!'$%$&')"!*+,$)*1,$)8%+,) 8$$V51&$.) "!*+,$) >4"*4) 1**+ !'$.) 8+%) EG6T)-$%*$!')+8)'+'12)!+!V"!'$%$&')"!*+,$6)n$()*+!'%"5 '+%&)8+%)'4$)-$%"+.)"!*2 .$.)"!'$%,$."13+!)&$%#"*$&)DBP6F)-$%*$!'H/) `. *"1%() 1*3#"3$&) DPF6E) ) -$%*$!'H) 1!.)-1(,$!') &$%#"*$&) DB6E) -$%*$!'H6) ) @+,5"!$./) '4$&$)'4%$$)4$2.)CE6E)-$%*$!')+8)'+'12)8$$V51&$.)"!*+,$6

;,+!0) '4$) 8+ %) 1!12(3*12) & 50%+ -&/) 8+%$"0!)51!9) 5%1!*4$&) 1!.) & 5&"."1%"$&) ) + '-$%8+%,$.) '4$)+'4$%&)"!).%1>"!0)'4$)21%0$&')%$' %!)8%+,)'%1."3+!12)5121!*$) &4$$') 1**+ !'&/) -+&3!0) 1) !$') "!'$%$&')"!*+,$V'+V'+'12)1&&$'&)%13+)+8)P6R)-$%*$!'6)\","21%2(/)8+%$"0!) 51!9&) 12&+) 9$-') '4$"%) 2$1.) "!) +WV5121!*$V&4$$') 1*3#"3$&)>"'4) 1) !+!V"!'$%$&') "!*+,$V'+V'+'12)1&&$'&) %13+) +8) P6G) -$%*$!'6) <4"&) "&) %$i$*3#$) +8) '4$)& 50%+ -Z&) *+,-$33#$) $.0$) "!) !+!V'%1."3+!12),1%9$'&) & *4) 1&) &$* %"3M13+!/) .$%"#13#$&/) 51!9)0 1%1!'$$&/) 5%+9$%"!0/) .$12$%&4"-/) %$,"b1!*$&) 1!.)

8 !.) ,1!10$,$!'6) L#$%122/) '4$) 1&&$') 51&$) +8) '4$) !"#$%&12)1!.)*+,,$%*"12)51!9"!0) "!. &'%()>1&)&322)8+* &$.) ,1"!2() +!) *+!#$!3+!12) 51!9) 2$!."!0) 1!.)"!#$&',$!'&)"!)&$* %"3$&6

<4$) "!. &'%() >1&) 152$) '+) U ."*"+ &2() ,1!10$) "'&)+-$%13!0) *+&'&) 1&) 0%+>'4) "!)!+!V"!'$%$&') $a-$!&$&)>1&) *+!`!$.) 8+%) '4$) `%&') &"a),+!'4&) +8) QTPP) '+) 1)&"!02$V."0"')+8)R6T)-$%*$!')D7F6R)5"22"+!H/)125$"')4"04$%)8%+,)E6F)-$%*$!') D7E6Q)5"22"+!H) -+&'$.) &1,$)-$%"+.)21&')($1%6)<4$),1"!).%"#$%&)+8)0%+>'4)>$%$o)DPH)+'4$%)1.,"!&"'%13#$) $a-$!&$&) 5() G6R) -$%*$!') +%) 7E6E)5"22"+!m)DQH)*+,-$!&13+!)1!.)8%"!0$)5$!$`'&)5()PT6E)-$%*$!')+%)7E6P)5"22"+!m)DEH)'1a$&)1!.)2"*$!&$&)5()PG6G)-$%*$!')+%)7P6C)5"22"+!)1!.)DBH)8$$&)1!.)*+,,"&&"+!&)5()PE6E)-$%*$!')+%)7T6Q)5"22"+!6

7%+#"&"+!)8+%)*%$."')2+&&$&)D+!)2+1!&)1!.)%$*$"#152$&)1!.)+'4$%)`!1!*"12)1&&$'&H).$*2"!$.)5()EF6S)-$%*$!')D7E6R)5"22"+!H) '+)7C6S)5"22"+!/)1) ' %!1%+ !.)8%+,)'4$)PB6T) -$%*$!') D7P6E) 5"22"+!H) 0%+>'4) -+&'$.) "!) '4$)&1,$) -$%"+.) 21&') ($1%) >4$!) '4$) "!. &'%() -%+#".$.)1.."3+!12)*+#$%)8+%)-%+&-$*3#$)2+&&$&6)^ %'4$%,+%$/)'+) & &'1"!) 1&&$') h 12"'(/) '4$) "!. &'%() %1"&$.) "'&) 51.).$5'&) >%"b$!) +W) 5() EG6F) -$%*$!') D7T6F) 5"22"+!H) '+)7Q6S)5"22"+!) 8%+,)7P6G)5"22"+!/)>4"2$)$a$%3!0)$W+%'&)8+%)'4$)%$*+#$%()+!)*41%0$.V+W)1&&$'&)>4"*4)%+&$)5()Q6R))-$%*$!'))'+)7T6G)5"22"+!6)

=$1!>4"2$/)'4$)"!. &'%()01"!$.)1)7C6E)5"22"+!)&41%$)"!)'4$)-%+`'&)+8) !*+!&+2".1'$.)& 5&"."1%"$&/)1&&+*"1'$&)1!.)U+"!')#$!' %$&)'%1!&213!0)'+)'+'12)-%+`'&)5$8+%$)'1a) +8) 7SB6G) 5"22"+!/) 4"04$%) 5() QE6T) -$%*$!') D7PT6Q)5"22"+!H) 8%+,) 7BB6S) 5"22"+!) &1,$) -$%"+.) 21&') ($1%6)]!*+,$) '1a) $a-$!&$&/) 4+>$#$%/) "!*%$1&$.) 5() PR6F)-$%*$!')'+)7G6E)5"22"+!6)<4"&)2$l)1)5+b+,2"!$)̀ 0 %$)+8)7BC6S)5"22"+!)+%),1%9$.2()QE6C)-$%*$!')D7G6R)5"22"+!H)4"04$%)+#$%)'4$)7EF6C)5"22"+!)-+&'$.)"!)&1,$)-$%"+.)21&')($1%6

<4$)1#$%10$)RPV.1()<V5"22)%1'$)*+!3! + &2().$*2"!$.)&"!*$)'4$)S6B)-$%*$!')%$*+%.$.)"!)QTTG)1')'4$)4$"04')+8)


Ratio of Sources of Revenue to Total AssetsAs of End-June 2011

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

Net Interest Income Non-Interest Income

UKBs Private

Domestic UBs

Private

Domestic KBs

Government Banks Foreign Banks

(Branches &

Subsidiaries)

In Percent


!"#$%&'()'!*)+,--$%."'()/'!0"!1)23&4$-

2$($.4$*)5'4",&)#&6)789*'3):%$'&;%3)/"(()5'4$

13.3

13.510.5

9.9

9.7 7.26.8

7.27.8 7.8

7.47.2

6.55.5

5.47.6

8.1

6.1 5.9 6.0

3.7 3.5 3.6 3.7 3.73.1 3.0

2.4

1.9 1.9

13.1

15.3

10.29.9

9.9

5.4

6.0

7.3

6.4

5.4

3.4

5.4

4.2

3.72.4

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Earning Asset Yield Funding Cost Treasury Bill Rate (91-day)

<!)=$%.$!4

* Average for the 12-month period July 2010 to June 2011


First Semester 2011


!"#$%&'(%#)*(*+,(%#+-,.,./#0!"#1&2* -"*1#3-&$-".."1#-"(+!,*$# (*# (%%456"# %&2# &7# 8/9# 3"-+"* # ,*# !"# )-. #!(%7# &7# 8:;;#1<"# &# (63%"# %,=<,1, ># ,*# !"#)*(*+,(%#.>. "6# (*1# !"# !,$!# 1"6(*1# 7&-# .(7"-# 1&6".5+#,*?". 6"* .#&*# !"#'(+@#&7# !"#!",$! "*"1#6(-@" #?&%(5%, >#(-,.,*$#7-&6# !"#$-&2,*$#+&*+"-*.#&7#(#AB#-"+"..,&*#(*1# %,*$"-,*$# .&?"-",$*#1"' #3-&'%"6.# ,*# !"#C<-&D&*"/

0!"# (**<(%,D"1# "(-*,*$# (.." # >,"%1# 6,--&-"1# !"#6&?"6"* # &7# !"# '"*+!6(-@# E;41(># 04',%%# -( "#1-&33,*$# &# F/9# 3"-+"* # 7-&6# F/E# 3"-+"* # .(6"#3"-,&1#%(. #>"(-/#G&*" !"%"..H#2, !#'"I"-#%&(*#=<(%, >#1<-,*$# !"#3"-,&1# "!#.3-"(1#'" 2""*# !"#(**<(%,D"1#"(-*,*$# (.." .# >,"%1# &?"-# !"# (?"-($"# E;41(># 04',%%#-( "#,63-&?"1# &#J:F#'(.,.#3&,* .#7-&6# !"#8::#'(.,.#3&,* .#$(3#-"+&-1"1#,*# !"#)-. #!(%7#&7#8:;:/

K*# !"# & !"-# !(*1H# !"# (**<(%,D"1# +&. # &7# 7<*1.#-"6(,*"1#<*+!(*$"1# 7-&6# !"#;/E#3"-+"* # ,*#8:;:#>" # %&2"-# !(*# !"# 8/8# 3"-+"* # 3&. "1# 1<-,*$# !"#.(6"#3"-,&1#%(. #>"(-/#G&*" !"%"..H# !"#$(3#'" 2""*# !"#E;41(>#04',%%#-( "#(*1# !"#(**<(%,D"1#7<*1,*$#+&. #*(--&2"1# &# L8# '(.,.# 3&,* .# 7-&6# ;ME# '(.,.# 3&,* .#,*#8:;:#(.#'"*+!6(-@#>,"%1.#+&*5*<"1# &#1-&3/#0!"#+%&.,*$#&7# !"#$(3#'" 2""*#'(*@.N#(**<(%,D"1#7<*1,*$#+&. # (*1# !"# '"*+!6(-@# 04',%%# -( "# '&1"# 2"%%# 7&-#1"3&., &-.#(*1#+-"1, &-.#(.# !">#$& #-" <-*.#+%&."-# &#-" <-*.#&7#(#-,.@47-""#$&?"-*6"* #."+<-, >/#

O63%"# %,=<,1, ># ,*# !"# .>. "6H# +&<3%"1# 2, !# . ""3#+&63"55&*#7&-#"*14<."-.#&7# !"."#7<*1.H#7&<*1# !"#,*1<. ->N.# *" # ,* "-". #6(-$,*# .%,1,*$# 7<- !"-# &#J/M#3"-+"* #7&-# !"#&*"4>"(-#3"-,&1#"*1"1#J:#P<*"#8:;;#7-&6#J/E#3"+"* #.(6"#3"-,&1#%(. #>"(-/

0!"# ,*1<. -># 2(.# ('%"# &# "*!(*+"# &3"-(5&*(%#"Q+,"*+>#'>#(1&35*$#+&. 4+<R*$#6"(.<-"./##S&-# !"#&*"#>"(-#3"-,&1#"*1"1#J:#P<*"#8:;;H# !"#(**<(%,D"1#+&. 4 &4,*+&6"#TU0VW#-(5&#,63-&?"1# &#X;/9#3"-+"* #7-&6##X8/M#3"-+"* #-"+&-1"1#,*# !"#.(6"#3"-,&1#%(. #>"(-/#0!,.#>"(-N.#U0V# -(5&#2(.#"?"*#'"I"-# !(*# !"#3-"4+-,.,.#T8::MW#-(5&#&7#X8/;#3"-+"* /##

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

O6&*$# !"# .<'$-&<3.H# 7&-",$*# '(*@.# +&*5*<"1# &#'"# !"#6&. #3-&) ('%"#!&?"-,*$#('&?"# !"#,*1<. ->#(?"-($"#2, !#(*#(**<(%,D"1#ZKO#&7#;/M#3"-+"* # T<3#7-&6# ;/J# 3"-+"* # .(6"# 3"-,&1# %(. # >"(-W/# ]-,?( "#1&6".5+# <*,?"-.(%# '(*@.# (%6&. # 6( +!"1# !"#


Net Interest Margin

0.0

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

June2011*

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Net Interest Income Average Earning Assets Net Interest Margin




Cost-to-Income Ratio

56.2

62.7

68.9

79.077.3

69.0

65.8 65.4

62.761.0

62.1

72.7

63.9

61.561.4

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

June2011*

50.0

55.0

60.0

65.0

70.0

75.0

80.0

85.0

Total Operating

Income (LHS)

Non-Interest Expense (LHS) Cost to

Income Ratio (RHS)




Return on Assets (ROA) and Return on Equity (ROE)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

June2011*

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

Return on Equity (ROE) (LHS) Return on Assets (ROA) (RHS)

In Percent


In Percent


!"#$%&'()*+&),+()!!#)- .+"(/01()%(234(5+&6+!%(7#5(8&9:(23;(5+&6+!%<3(=9*+&!:+!%(>)!?$@(9!(%A+(9%A+&(A)!"@( 59$%+"( 23B( 5+&6+!%( 7"9C!( 8&9:( 23D( 5+6+!%<(CA 6A(C)$(-9C+&(%A)!(%A+( !"#$%&'(/01(CA -+(5& *)%+("9:+$E6( 69::+&6 )-( >)!?$( %&) -+"( >+A !"( C %A( )!()!!#)- .+"(/01(&)E9(98(F3G(5+&6+!%(7>+H+&(%A)!('+)&(),9I$(F34(5+&6+!%<

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

Major Balance Sheet Trends

Assets

QA+( #! *+&$)-( )!"( 69::+&6 )-( >)!? !,( !"#$%&'($#$%) !+"()(A+)-%A'(>)-)!6+($A++%()$(%9%)-(&+$9#&6+$(69!E!#+"( %9( +R5)!"3( Q9%)-( )$$+%$( &+)6A+"( )!( )--SE:+(A ,A(98(T4@LOF3F(> -- 9!()%(+!"SU#!+(LF22@(#5(>'(2L3;(5+&6+!%(8&9:(TP@PGB3G(> -- 9!()%(+!"SU#!+(LF2F3(7Q)>-+(22<

1--($#>,&9#5$()#,:+!%+"(%A+('+)&S9!S'+)&(+R5)!$ 9!( !(%A+( !"#$%&'I$(&+$9#&6+$3(T& *)%+("9:+$E6(#! *+&$)-(>)!?$(-+"(C %A()!()$$+%(>)$+(,&9C !,(>'(2;3F(5+&6+!%(7TBGB3L(> -- 9!<(%9(TB@2DO34(> -- 9!3((QA $(C)$(89--9C+"(>'( ,9*+&!:+!%( >)!?$( C %A( 2L34( 5+&6+!%( 7T2FL3G(> -- 9!<( %9( TD2434( > -- 9!@( 89&+ ,!( >)!?( >&)!6A+$()!"( $#>$ " )& +$( C %A( 2B3P( 5+&6+!%( 7TDP3G( > -- 9!<((%9( TOPB32( > -- 9!( )!"( 5& *)%+( "9:+$E6( 69::+&6 )-(>)!?$(C %A(F34(5+&6+!%(7TL3B(> -- 9!<(%9(TBF23O(> -- 9!3

1$( %A+( )669::9")E*+( !%+&+$%( &)%+( +!* &9!:+!%(>9"+(C+--(89&(6&+" %(+R5)!$ 9!@(69&+(-+!" !,$(-)&,+-'(

8#+-+"( %A+( ,&9C%A( !( %A+( !"#$%&'I$( %9%)-( )$$+%$( )$(-9)!$(7!+%(98(JVW()!"(//T$(C %A(VXT()!"(9%A+&(>)!?$<(+R5)!"+"( >'( )( A+Y'( 2D3P( 5+&6+!%( 7TBFB3L( > -- 9!<(%9(TL@BOO3D(> -- 9!(8&9:(TL@FO;3O(> -- 9!()('+)&(),93(Z9!$+[#+!%-'@( 69&+( -9)!$( )-$9( 6)5%#&+"( %A+( > ,,+$%($A)&+(98( %A+( !"#$%&'I$( %9%)-()$$+%$()%(;D3P(5+&6+!%@((#5(8&9:(;O32(5+&6+!%()('+)&(),93

W ?+C $+@(%A+( !"#$%&'(C)$(> )$+"(%9C)&"$($)8+&()!"(:9&+(- [# "( !$%&#:+!%$($#6A()$(X\1$()!"(//T$3(Z)$A()!"("#+(8&9:(>)!?$(>)--99!+"(>'(;;3G(5+&6+!%(7TLGO32(> -- 9!<(%9(T2@2;P3G(> -- 9!3(J!(%A+($):+(:)!!+&@(//T(C %A(VXT()-$9(&9$+(>'(;;3P(5+&6+!%(7T4B3O(> -- 9!<(%9(TLPO3G( > -- 9!3( 1669&" !,-'@( %A+( $A)&+$( 98( 6)$A( )!"("#+(8&9:(>)!?$()!"(//T$(%9(%A+()$$+%(: R(C "+!+"(%9(2G32(5+&6+!%()!"(B32(5+&6+!%(8&9:('+)&(),9I$(2P3L(5+&6+!%()!"(;3P(5+&6+!%@(&+$5+6E*+-'3

]+)!E:+@( ^!)!6 )-( )$$+%$( 9%A+&( %A)!( -9)!$( 7!+%(98( +[# %'( !*+$%:+!%$( !( $#>$ " )& +$@( )$$96 )%+$()!"( _9 !%( *+!%#&+$<( )-$9( !6&+)$+"( >'( L3O( 5+&6+!%(%9( T2@4FD3B( > -- 9!@( )->+ %( $-9C+&( %A)!( '+)&( ),9I$(+R5)!$ 9!(98(2;3;(5+&6+!%3(Q9(!9%+@(^!)!6 )-()$$+%$(CA 6A(&9$+(>'(T2GB3F(> -- 9!(C)$(%A+(:) !("& *+&(98()$$+%(,&9C%A(89&(%A+(9!+('+)&(5+& 9"(+!"+"(;F(U#!+(


Asset Growth

2,509 2,5012,680

2,936 2,9433,141.4

3,617.63,856.4

4,488.3

3,297.2

4,289.3

5,035.0

6,131.86,270.0

32.9% (0.3%)

7.1%

9.6%

0.2%

6.8%

5.0%

9.7%

6.6%

11.2%

4.6%

12.2% 11.8% 12.3%

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

7,000.0

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2010 June

2011

In P Billion

(0.5%)

4.5%

9.5%

14.5%

19.5%

24.5%

29.5%

34.5%

In Percent

Levels Growth


Main Source of Asset GrowthAs of End of Periods Indicated

(200.0)

(100.0)

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

Loans (net of IBL and RRPs) Cash and Due from banks

RRPs Financial Assets

IBL Other assets

Equity Investments ROPA

END-JUNE 2010

P496.0 Billion

End-JUNE 2011

P685.2 Billion


Asset Mix

June 2010 June 2011

37.1% 39.5%

28.1% 25.7%

15.2% 18.1%

6.1% 5.6%

3.5% 4.1%

5.7% 3.2%

2.3% 2.2%

2.0% 1.6%

Loans (exclusive of IBL and RRP)

Financial Assets, net (Other than Loans)

Cash and due from banks

RRP

IBL

Equity Investments, net

ROPA, net

Other assets

June 2010

P 5,584.8 Billion

June 2011

P 6,270.0 Billion


First Semester 2011


LF2F3(`9C+*+&@( ("#+( %9($-9C"9C!( !( %A+( !"#$%&'I$(%&)" !,( )6E* E+$( "#& !,( %A+( 5+& 9"( !( &+* +C@( %A+( !6&+:+!%)-(,&9C%A( !(^!)!6 )-()$$+%$(C)$( -9C+&()%(TB23O(> -- 9!3

0%A+&(59&E9!$(98(%A+( !"#$%&'I$()$$+%$(C+&+( !(9%A+&()$$+%$()%(P34(5+&6+!%(7"9C!(8&9:(432(5+&6+!%()('+)&(),9<@( JVW( )%( ;3L( 5+&6+!%( 7"9C!( 8&9:( P3O( 5+&6+!%<@(+[# %'( !*+$%:+!%$@(!+%()%(L3L(5+&6+!%(7$- ,A%-'("9C!(8&9:(L3;(5+&6+!%<()!"(/0T1@(!+%()%(234(5+&6+!%(7"9C!(8&9:(L3F(5+&6+!%<3(((

QA+( !"#$%&'( !%+!$ ^+"( "+59$ %( ,+!+&)E9!( %9( 8#!"(%A+(,&9C%A( !(&+$9#&6+$3(\+59$ %(- )> - E+$( !6&+)$+"(>'( G3G( 5+&6+!%( 7T;4D3O( > -- 9!<( %9( TB@POP3;( > -- 9!(8&9:('+)&(),9I$(TB@LFP3P(> -- 9!()!"(&+:) !+"()$(%A+(:) !( $9#&6+( 98( 8#!"$( )%( O;3F( 5+&6+!%( 7"9C!( 8&9:('+)&(),9I$(OP3;(5+&6+!%<3

Z)5 %)-( )669#!%$( - ?+C $+( $#559&%+"( )$$+%( ,&9C%A@(+R5)!" !,( '+)&S9!S'+)&( >'( 243;( 5+&6+!%( 7T2FB3;(> -- 9!<( %9( TOBP3G( > -- 9!( 8&9:( T4B23B( > -- 9!( %A#$@(&) $ !,( %A+ &( 5&959&E9!( %9( %A+( 8#!" !,( : R( %9( 223D(5+&6+!%(8&9:(223P(5+&6+!%()('+)&(),93(QA+(5&9^%)>-+(95+&)E9!$(98(:9$%(#! *+&$)-()!"(69::+&6 )-(>)!?$(&+$#-%+"( %9( &+%) !+"( +)&! !,$a#!" * "+"( 5&9^%$(+R5)!" !,(>'(LO3D(5+&6+!%(7T4232(> -- 9!<(%9(TLGF3L(> -- 9!()!"(%A+&+>'@()669#!E!,(89&()(> ,(6A#!?(98(%A+( !6&+:+!%( !(6)5 %)-()669#!%$3

QA+( &+$%( 98( %A+( 8#!" !,( : R( C+&+M( 9%A+&( - )> - E+$()%( 43G( 5+&6+!%( 7#5( 8&9:( P3G( 5+&6+!%<@( > --$( 5)')>-+()%( P3G( 5+&6+!%( 7#5( 8&9:( B3G( 5+&6+!%<@( #!$+6#&+"($#>9&" !)%+"("+>%()%(23G(5+&6+!%(7$):+()$('+)&(),9<@(^!)!6 )-( - )> - E+$( A+-"( 89&( %&)" !,( )%( F34( 5+&6+!%(7$- ,A%-'( "9C!( 8&9:( F3O( 5+&6+!%<( )!"( ^!)!6 )-(- )> - E+$("+$ ,!)%+"()%(8) &(*)-#+(%A&9#,A(5&9^%()!"(-9$$()%(F32(5+&6+!%(7#!6A)!,+"<3

Loans

b9%C %A$%)!" !,( %A+( :5) &+"( &+*+!#+( 5&9$5+6%$(8&9:(%&)" !,()6E* E+$("#+( %9(9!,9 !,(,-9>)-(C9+$@(-+!" !,( )6E* E+$( 98( %A+( !"#$%&'( 69!E!#+"( %9($%&+!,%A+!(&+c+6%(%A+(>#9')!6'(98("9:+$E6("+:)!"(9!( %A+( >)6?( 98( 5&+*) - !,( $%)>-+( :)6&9+69!9: 6(69!" E9!3

1$( 98( +!"SU#!+( LF22@( %A+( !"#$%&'I$( '+)&S9!S'+)&(-9)!( ,&9C%A@( !+%( 98( JVW( )!"( //T$@( )66+-+&)%+"( %9(2G3O( 5+&6+!%( 8&9:( )( ,&9C%A( 98( G3L( 5+&6+!%( )%( +!"S\+6+:>+&(LF2F()!"(D3L(5+6+!%()%(+!"SU#!+(LF2F3

`9C+*+&@( !6-#$ *+( 98( JVW( )!"( //T$@( %A+( !"#$%&'I$(%9%)-(-9)!(59&d9- 9(+R5)!"+"($-9C+&(>'(2;3L(5+&6+!%(7T;P432( > -- 9!<( %9( T;@FPD3P( > -- 9!( 8&9:( TL@OF;3B(> -- 9!( )( '+)&( ),9( )$( JVW( $ ,! ^6)!%-'( 8+--( >'( ;O32(5+&6+!%( 7T22G34( > -- 9!<3( 155)&+!%-'@( #! *+&$)-( )!"(69::+&6 )-(>)!?$(5&+8+&&+"(%9(,&)!%(-9)!$(%9(6&+" %SC9&%A'( >9&&9C+&$( 9&( 5-)6+( 8#!"$( !( &+-)E*+-'( & $?S8&++(//T$(&)%A+&(%A)!(-+!"(%9(9%A+&(>)!?$3

W ?+C $+@(%9%)-(-9)!(59&d9- 9@(,&9$$(7!+%(98(JVW<(>99?+"(#!"+&( %A+( 89&+ ,!( 6#&&+!6'( "+59$ %( #! %( 7eZ\f<(+R5)!"+"(>'(LF3G(5+&6+!%(7g23L(> -- 9!<(%9(g434(> -- 9!(8&9:(gP3B(> -- 9!()('+)&(),93(`9C+*+&@( !69&59&)E!,(JVW@(eZ\f(-9)!$("+6- !+"(>'(;32(5+&6+!%(7gF3;(> -- 9!<(%9(g2F3;(> -- 9!(8&9:(g2F34(> -- 9!()('+)&(),93(

1--( $#>,&9#5$( C+&+( !( - !+( C %A( %A+( '+)&S9!S'+)&(+R5)!$ 9!( 98( %A+( !"#$%&'I$( 69&+( -+!" !,3( T& *)%+("9:+$E6( #! *+&$)-( >)!?$( -+"( C %A( -9)!$( ,&9C !,(>'(2D34(5+&6+!%(7T;FP3G(> -- 9!<3((1(8)&($+69!"(C+&+(,9*+&!:+!%( >)!?$( C %A( 69&+( -9)!$( !6&+)$ !,( >'(LF3B(5+&6+!%(7TPP34(> -- 9!<(CA -+($:)--+&( !6&+:+!%$(C+&+(59$%+"(>'(89&+ ,!(>)!?$(72L3G(5+&6+!%(9&(T;F32(> -- 9!<()!"(5& *)%+("9:+$E6(69::+&6 )-(>)!?$(72P3P(5+&6+!%(9&(T2G3P(> -- 9!<3

J!( %+&:$(98($A)&+@(5& *)%+("9:+$E6(#! *+&$)-(>)!?$(69!$ $%+!%-'()669#!%+"(89&(%A+(>#-?(98(%A+( !"#$%&'I$(%9%)-(-9)!(59&d9- 9(7+R6-#$ *+(98(JVW()!"(//T$<()%(O23D(5+&6+!%(7#5(8&9:('+)&(),9I$(O23B(5+&6+!%<3( (X:)--+&(


Funding Mix

June 2010 June 2011

75.3% 73.0%

11.5% 11.9%

4.8% 5.8%

1.8% 1.8%

0.7% 0.6%

0.1% 0.1%

5.8% 6.8%

June 2010

P 5,584.8 Billion

Deposits

Capital Accounts

Bills Payable

Unsecured Subordinated Debt

Financial Liabilities HFT

Financial Liabilities DFVPL

Other Liabilities

June 2011

P 6,270.0 Billion


Loan GrowthAnnual Growth

3.9%

9.0%

24.6%

4.5%

9.2% 8.2%

18.7%

-60%

-10%

40%

90%

140%

190%

2006 2007 2008 2009 End-June

2010

2010 End-June

2011

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

IBL (LHS) RRPs (LHS) Core Lendings (RHS)


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Main Recipients of Loan GrowthAs of end of Periods Indicated

(In Billion Pesos)

(50)

0

50

100

150

200

250

300

350

400

Electricity… Real Estate… Manufacturing

Wholesale… Transportation… Others



Loan Portfolio Structure by Industry Sector

June 2010 June 2011

25.4% 22.4%

13.4% 14.1%

13.3% 13.7%

11.4% 10.6%

9.0% 9.5%

5.8% 8.4%

5.2% 5.6%

2.5% 2.2%

2.3% 2.1%

11.8% 11.3%


Real Estate, Renting & Business Activities, Construction

Manufacturing

Agriculture, Fishery, Hunting & Forestry

Wholesale, Retail Trade & Repair

Electricity, Gas & Water

Transportation, Storage & Communication

Public Admi. & Defense, Compulsory Social Securities

Other Community, Social & Personal Activities

Others

June 2011

P3,059.5 BillionJune 2010

P2,703.4Billion

_____________________________________________________CC&S:"+(9&d:(%#!$%&'("(& %($)& )!&:$7+("%.6& .$@& 4!,,("47.6&-.$/%2& D8(&-.$/%& )8.)&

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N( !")=


First Semester 2011


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N(.6& (%).)(& 6!.$%& 5NF^%=& (I)($@(@& -9& )8(& 7$@:%)"9&7$4"(.%(@& -9& 0K2C& ("4($)& )!& JBCA2<& -7667!$& ;"!,&J1K02?& -7667!$& .& 9(."& .*!2& W(% 7)(& )8(& 4!$#$:!:%&*"!')8& 7$&NF^%&%7$4(&1??A>&)8(&".#!&!;&NF^%&)!&D^J&'.%&,.7$).7$(@&.)&.&%)(.@9&6(+(6&!;&0?&)!&01& ("4($)2&D8(& ".#!& .)& ($@ac:$(& 1?00& %)!!@& :$48.$*(@& ;"!,&9(."&.*!\%&0121& ("4($)2&&

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h!$a (";!",7$*& NF^%& .,!:$)(@& )!& J0K2<& -7667!$>&87*8("& -9& 0A2L& ("4($)& 5J12K& -7667!$=& ;"!,& 9(."&.*!\%& J032<&-7667!$2& D8(& 7$4"(,($)& 4.,(& ;"!,&-!)8&$!$a (";!",7$*& "(%7@($#.6& .$@& 4!,,("47.6& NF^%&7$4"(.%7$*& -9& C?23& ("4($)& 5J023& -7667!$=& .$@& 0?2<& ("4($)& 5J02B& -7667!$=>& "(% (4#+(692& H7)8& ;.%)("&(I .$%7!$& 7$& NF^%>& 8!'(+(">& )8(& ".#!& !;& $!$a (";!",7$*&NF^%&)!&)!).6&NF^%&%67*8)69&7, "!+(@&)!&<23& ("4($)&;"!,&<2A& ("4($)&.&9(."&.*!

Q%&)8(&"(.6&(%).)(&%(4)!"&.$@&)8(&8!:%7$*&%(*,($)>&7$& ."#4:6."& 4!$#$:(@& )!& "!*"(%%>& )8(& %8."(& !;&"(%7@($#.6&"(.6&(%).)(&6!.$%&5NNF^%=&)!&)!).6&4!$%:,("&6!.$%&'7@($(@&)!&BB2<& ("4($)&!"&J0?B23&-7667!$&5: &;"!,& B02K& ("4($)& !"& JLC2<& -7667!$& !%)(@& .& 9(."&.*!=&.$@&8(6@&)8(&%(4!$@&6."*(%)&4!, !$($)&!;&)!).6&4!$%:,("&6!.$%&.)&($@ac:$(&1?002

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W!,(%#4& -.$/%& 4!$%7%)($)69& 8(6@& -:6/& !;& )8(&7$@:%)"9\%& )!).6&Q^%&.)&KB20& ("4($)&!"&J<K23&-7667!$&5@!'$&;"!,&KB2A& ("4($)&-:)&: &;"!,&JCA2A&-7667!$=2&&T!"(7*$& -.$/%& .44!:$)(@& ;!"& )8(& "(,.7$7$*& 32K& ("4($)&%8."(&!"&JC2C&-7667!$&5: &;"!,&32B& ("4($)&!"&JB21&-7667!$=2&


Components of Consumer LoansAs od End of Period Indicated

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

End-June 2009 End-June 2010 End-June 2011

Other Consumer Loans Auto Loans

Residential RELs Credit Card Receivables


Real Estate LoansAs od End of Period Indicated

12.2%11.7%

12.2%11.5%

10.9%

10.3%

11.4%

5.6%6.1%5.7%5.2%

6.1%

7.7%

10.5%

-

40.0

80.0

120.0

160.0

200.0

240.0

280.0

320.0

360.0

2006 2007 2008 2009 End-June

2010

2010 End-June

2011

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

RESIDENTIAL (LHS) COMMERCIAL (LHS) RELs to TLP (RHS) NPRELs RATIO (RHS)

In P Billion Percent


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

O$# +.# "-0NP1-"# 9>::L# (!"# /-01$(*2# =*&-("0# 8:>76Q#;/''/+-# <56H#)"*4"-(@# (+#%/4*+R$%&''# "-("*)*/$"$#&-0#8::76G#;/''/+-# <G6:#)"*4"-(@# (+#%"0/1%#"-("*)*/$"$6# !"# /-01$(*2# ."''# $!+*(# ;2# :65# )"*4"-(&="# )+/-($#A/(!# (!"# 7# )"*4"-(# %/-/%1%# *"M1/*"0# .+*# %/4*+R$%&''# "-("*)*/$"$# ;1(# 4+%)'/"0#A/(!# (!"# 9# )"*4"-(#%/-/%1%# .+*# %"0/1%# "-("*)*/$"$# 1-0"*# S6O6# T+6#5JGGL#&$#&%"-0"0#;2#S6O6#T+$6#797J#&-0#J?>:6

O$#/-#(!"#)&$(L#(!"#/-01$(*2#0/0#-+(#%""(#(!"#%/-/%1%#:># )"*4"-(# *"M1/*"%"-(# .+*# &=*&*/&-# *".+*%# 1-0"*#86D6#T+6#G:GL#&$#&%"-0"0L#&(#76Q#)"*4"-(#+*#89>Q6H#;/''/+-#<F$6#(!"#*"M1/*"0#89H56H#;/''/+-@6#C/E"A/$"L#(!"#4+%)'/&-4"#*&,+#.+*#&=*/41'(1*&'#'+&-$#/-#="-"*&'#."''#$!+*(#+.#(!"#*"M1/*"0#9?#)"*4"-(#&(#9>6>#)"*4"-(#+*#8HJQ6?#;/''/+-#<F$6#(!"#*"M1/*"0#85:56:#;/''/+-@6

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

!"# /-01$(*2# )+$("0# /($# !/=!"$(# "F"*# T8C# 4+F"*&="#*&,+#&(#:9569#)"*4"-(#0"$)/("#(!"#>69#)"*4"-(#<8>69#;/''/+-@#0"4'/-"#/-#'+&-#'+$$#*"$"*F"$#(+#8JQ6?#;/''/+-#.*+%#2"&*#&=+3$#8JQ6G#;/''/+-6# !"#.&$("*#4+-(*&4,+-#/-#0"'/-M1"-(#'+&-$#A/0"-"0#(!"#T8C#4+F"*&="#*&,+#.*+%#2"&*#&=+3$#:>J6>#)"*4"-(#*&,+6

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

!"#96H#)"*4"-(#T8C#*&,+#+.#(!"#/-01$(*2#'/"#+-#(!"#%"0/&-#+.#(!"#T8C#4+%)&*&,F"#(&;'"#&%+-=#OUWOT#4+1-(*/"$6# !"#/-01$(*2#A&$#&;'"#(+#;*/-=#0+A-#(!"#0"'/-M1"-42#*&,+#;"'+A#/($#)*"N4*/$/$# '"F"'#+.#&;+1(#H6>#)"*4"-(#A/(!+1(#*"4+1*$"#(+#=+F"*-%"-(#;&/'+1(6##T+-"(!"'"$$L# (!"# 1-/F"*$&'# &-0# 4+%%"*4/&'# ;&-E$#A"*"#$,''#4!&''"-="0#(+#.1*(!"*#*"014"#(!"#T8C#*&,+#0+A-# (+# (!"# :67# (+# 96># )"*4"-(# *&-="# &4!/"F"0# ;2#;&-E$#/-#U/-=&)+*"#&-0#K&'&2$/&6

-

50.0

100.0

150.0

200.0

250.0

300.0

19971998199920002001200220032004200520062007200820092010

June2011

In P Billion

0.0

20.0

40.0

60.0

80.0

100.0

120.0In Percent

NPLs (LHS) Loan Loss Reserves (LHS)

NPL Ratio (RHS) NPL Coverage Ratio (RHS)

-

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

19971998199920002001200220032004200520062007200820092010

June2011

In P Billion

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0In Percent

NPAs (LHS) NPA Reserves (LHS)

NPA Ratio (RHS) NPA Coverage Ratio (RHS)

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

19971998199920002001200220032004200520062007200820092010

June2011

In P Billion

0.0

5.0

10.0

15.0

20.0

25.0

30.0In Percent

NPAs (LHS) Restructured Loans (Performing) (LHS) Distressed Ratio (RHS)

Distressed Assets RatioNPAs and NPA Coverage RatioNPLs and NPL Coverage Ratio


Comparative NPL Ratio By Industry Subgroup

5.7%

4.4%

3.5%3.0%

3.2%2.9%

2.4%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

2006 2007 2008 2009 June 2010 2010 June 2011

Private Domestic- UBs Private Domestic- KBsGovernment Banks Foreign Banks (Branches & Subsidiaries)INDUSTRY NPL RATIO

In Percent


First Semester 2011


!"#*"$(*14(1*"0# '+&-$#<SC$@#(+# C8#*&,+#&$#+.#"-0NP1-"#9>::#A"-(#0+A-#(+#:6H#)"*4"-(#.*+%#:6G#)"*4"-(#&#2"&*#&=+6# !"#*&,+#."''#&$#=*+$$#SC$#0"4'/-"0#;2#76:#)"*4"-(# <8Q65# ;/''/+-@# (+# 8H:6?# ;/''/+-# .*+%# 8H?6:#;/''/+-6

K+*"+F"*L#(!"#/-01$(*2#4+-,-1"0#A/(!#/($#0/$)+$/,+-#+.# ;&0# &$$"($# (!*+1=!# )1;'/4# &14,+-$L# -"=+,&("0#$&'"$#+*#X+/-(#F"-(1*"#&=*""%"-($#(+#.1*(!"*#*"014"#(!"# +F"*&''# $(+4E# +.# .+*"4'+$"0# )*+)"*,"$# /-# (!"/*#;++E$6#O$#+.#"-0NP1-"#9>::L#*"&'#&-0#+(!"*#)*+)"*,"$#&4M1/*"0#+*#SY8OL#=*+$$#$(++0#&(#8:Q>6:#;/''/+-L#G6:#)"*4"-(# <8:>6># ;/''/+-@# '+A"*# (!&-# 2"&*# &=+3$# '"F"'#+.#8:H>6:#;/''/+-6#Z"-4"L#SY8ON(+N=*+$$#&$$"($#*&,+#"&$"0# (+#:6J#)"*4"-(# .*+%#96Q#)"*4"-(#&(#"-0NP1-"#9>:>6

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

\2# $1;=*+1)$L# .+*"/=-# ;&-E$# <;*&-4!"$# &-0#$1;$/0/*/"$@#$4+*"0#(!"#;"$(#T8O#*&,+#&(#>65#)"*4"-(#<"&$/-=# .*+%# 2"&*# &=+3$# >6J# )"*4"-(@# A!"*"&$L#=+F"*-%"-(#;&-E$#)+$("0#96Q#)"*4"-(# <;"V"*# (!&-#

96?#)"*4"-(@6# !"#T8O#*&,+$#+.#(!"$"#(A+#$1;=*+1)$#A"*"# $,''# ;"V"*# (!&-# (!"# /-01$(*2# &F"*&="# /-# ;+(!#4+%)&*&,F"#)"*/+0$6

Y-# (!"#+(!"*# !&-0L# )*/F&("#0+%"$,4#1-/F"*$&'# &-0#4+%%"*4/&'# ;&-E$# 4+-,-1"0# (+# %&/-(&/-# ]=1*"$#&;+F"#(!"# /-01$(*2#&F"*&="#$/-4"#"-0N:JJ76#8*/F&("#0+%"$,4# 4+%%"*4/&'# ;&-E$# *"4+*0"0# (!"# !/=!"$(#T8O# *&,+# &(# ?6Q# )"*4"-(L# $'/=!('2# !/=!"*# (!&-# 2"&*#&=+3$#?69#)"*4"-(6#8*/F&("#0+%"$,4#1-/F"*$&'#;&-E$#.+''+A"0# &(# Q6H# )"*4"-(L# &-# /%)*+F"%"-(# .*+%# H6H#)"*4"-(6

!"# 0/$(*"$$"0# &$$"($# *&,+L# &$# &# ;*+&0"*# %"&$1*"#+.# &$$"(# M1&'/(2L# %/**+*"0# (!"# /-01$(*23$# )*+=*"$$#/-#4'"&-/-=#1)# /($#;++E$6#O$#+.#"-0NP1-"#9>::L# # (!"#0/$(*"$$"0#&$$"($#*&,+#/%)*+F"0#(+#567#)"*4"-(L#(!"#'+A"$(#$/-4"#"-0N:JJG3$#565#)"*4"-(6#K+*"+F"*L#(!"#'"F"'#+.#0/$(*"$$"0#&$$"($#0"4'/-"0#;2#J6G#)"*4"-(#(+#89:H69#;/''/+-#.*+%#2"&*#&=+3$#89QG69#;/''/+-6

Other Financial Assets

O$# +.# "-0NP1-"# 9>::L# (!"# /-01$(*23$# !+'0/-=$# +.#]-&-4/&'#&$$"($#+(!"*#(!&-#'+&-$H?#<-"(#+.#&%+*,^&,+-#&-0#&''+A&-4"#.+*#4*"0/(#'+$$"$@#=*"A#;2#96G#)"*4"-(#(+#8:L5>J6H#;/''/+-#.*+%#8:L?5G6G#;/''/+-#&#2"&*#&=+6## !"#$'+A"*#=*+A(!#-+("0#(!/$#*"F/"A#)"*/+0#A&$#+-#&44+1-(#+.#(!"#/-01$(*23$#("%)"*"0#(*&0/-=#&4,F/,"$#01"#(+#%&*E"(#F+'&,'/,"$6

K"&-A!/'"L# (!"# /-01$(*23$# "M1/(2# /-F"$(%"-($# /-#$1;$/0/&*/"$L# &$$+4/&("$# &-0# X+/-(# F"-(1*"$L# -"(#"[)&-0"0# ;2# H6G# )"*4"-(# (+# 8:QH65# ;/''/+-# .*+%#8:976?#;/''/+-#&#2"&*#&=+6

!"# /-01$(*23$# (+(&'# /-F"$(%"-($L#-"(# <)+*_+'/+# &-0#0/*"4(@#&44+*0/-='2#=*"A#;2#967#)"*4"-(#(+#8:LGHH6>#;/''/+-#.*+%#8:L5J56Q#;/''/+-#&#2"&*#&=+6

Commercial Banking System

Comparative NPL Ratio of Selected ASEAN Countries

Country

Singapore 1.8% September 2010

Malaysia 2.0% June 2011

Philippines 2.4% June 2011

Indonesia 2.7% June 2011

Thailand 2.9% June 2011

Source: Asia Regional Integration Center Website

NPL Ratio

(as of dates indicated)


Comparative NPA Ratio By Industry Subgroup

6.3%

5.2%

4.5%

3.9% 3.8%3.3%

3.0%

0.0

2.0

4.0

6.0

8.0

2006 2007 2008 2009 June 2010 2010 June 2011

Private Domestic- UBs Private Domestic- KBsGovernment Banks Foreign Banks (Branches & Subsidiaries)INDUSTRY NPL RATIO

In Percent

_____________________________________________________ ! "#$%&'(#)*+,&(-.*(#/+0-1+#-0*(#*2&30('(45(+06*7008$(4-+0*4#'*98(#-*:+#-&5+0


Composition of Other Financial AssetsAs of End-June 2011

(In Billion Pesos)

P68.6

(3.9%)

P174.8

(10.0%)

P1,500.6

(86.1%)

0 200 400 600 800 1,000 1,200 1,400 1,600

Derivatives

Equity Securities

Debt Securities

Equity Investments in Subsidiaries/Associates/Joint Ventures Available-for-Sale (AFS)

Held-to-Maturity (HTM) Unquoted Debt Securities Classified as Loans (UDSCL)

Held for Trading (HFT) Designated at Fair Value Through Profit/ Loss (DFVPL)

Investments in Non-Marketable Equity Securities (INMES)


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

Q?+*F DCO*3(%%(8#*5(0+*(#*-8-4%* (#/+0-1+#-0*E<85A8%(8*4#'*'(5+$-I*L40*@&+%+'*3.*-?+*+R<4#0(8#*(#*4%%*-.<+0*8@* (#0-5&1+#-0C* S+3-* 0+$&5(=+0* $8#-5(3&-+'* -?+*?()?+0-*(#$5+1+#-*8@*FBOC!*3(%%(8#6*@8%%8L+'*3.*+,&(-.*0+$&5(=+0* )58L(#)* 3.* FPCD* 3(%%(8#*L?(%+* '+5(/4=/+0*<58/('+'*-?+*5+14(#(#)*F!C!**3(%%(8#C

T.*$81<80(=8#6*'+3-*0+$&5(=+0*$8#0(0-+#-%.*?+%'*-?+*%(8#M0*0?45+*8@*-?+*(#'&0-5.M0*-8-4%*(#/+0-1+#-0*4-**HNCJ*<+5$+#-*85*FJ6!GGCN*3(%%(8#*E'8L#*@581*HNC!*<+5$+#-*3&-*?()?+5*-?4#*FJ6 NHCJ*3(%%(8#*4*.+45*4)8IC*U,&(-.*0+$&5(=+0* @8%%8L+'6* 4$$8&#=#)* @85* JGCG* <+5$+#-* 85*FJD CH*3(%%(8#*E&<*@581*PCD*<+5$+#-*85*FJN!CO*3(%%(8#I*0?45+*L?+5+406*'+5(/4=/+0*$81<5(0+'*-?+*5+14(#(#)*0?45+* 8@* BCP* <+5$+#-* 85* FNHCN* 3(%%(8#* E&<* @581* BCD*<+5$+#-*85*FNBCG*3(%%(8#IC

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

400+-0*'+0()#4-+'*4-*@4(5*/4%&+*-?58&)?*<58W-*4#'*%800*ESV:FKIC

Y85+* -?4#* -?5++X@8&5-?0*85*DDCG*<+5$+#-*85*FJB CN*3(%%(8#*E'8L#*@581*DDCH*<+5$+#-*3&-*&<*@581*FJOHC!*3(%%(8#* 4* .+45* 4)8I*8@* +,&(-.* 0+$&5(=+0*L+5+*<%4$+'*(#*(#/+0-1+#-0*(#*+,&(=+0*8@*0&30('(45(+06*4008$(4-+0*4#'*]8(#-*/+#-&5+0*E#+-*8@*4%%8L4#$+*@85*$5+'(-*%800+0IC*Q?+*5+0-*L+5+*5+$85'+'*&#'+5^*EJI*"#/+0-1+#-0*(#*#8#X145>+-43%+*+,&(-.*0+$&5(=+0*E"_YU2I*X*JJC *<+5$+#-*85*FOGCG*3(%%(8#*E'8L#*@581*JOCD*<+5$+#-*4#'*FOGCP**3(%%(8#I6*EOI*4/4(%43%+*@85*04%+*E7V2I*`*JJCG*<+5$+#-*85*FJPCB*3(%%(8#* E&<*@581*HCH*<+5$+#-*85*FJ C!*3(%%(8#I6*4#'* EBI*?+%'* @85* -54'(#)* EZVQI* X*GC!*<+5$+#-*85*FGCP*3(%%(8#*E'8L#*@581*GCD*<+5$+#-*4#'*FJCO*3(%%(8#IC

Y+4#=1+6*4%%*'+5(/4=/+0*(#0-5&1+#-0*L+5+*$%400(W+'*40*?+%'X@85X-54'(#)*EZVQIC

\8&#-+5<45=+0* 8@* W#4#$(4%* 400+-0* 8-?+5* -?4#* %84#0*L+5+*180-%.* 5+0('+#-0* 4-* H CH* <+5$+#-* 85* FJ6 DHCJ*3(%%(8#* E&<* @581* HBCN* <+5$+#-* 85* FJ6 JDCB* * 3(%%(8#*4* .+45* 4)8IC* Q?+* 5+0-* L+5+* #8#X5+0('+#-0* 4-* J!CJ*<+5$+#-*85*FONBCG*3(%%(8#*E'8L#*@581*JNCO*<+5$+#-*85*FOD!CJ*3(%%(8#I*4#'*1&%=%4-+54%*4)+#$(+0*4-*4*1+40%.*GCJ*<+5$+#-*85*FOCH*3(%%(8#* E'8L#* @581*GCO*<+5$+#-*


Sources of Growth in Other Financial AssetsAs of end of Periods Indicated

DerivativesDerivatives

Equity

Equity

Debt

Debt

(20.00)

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

END-DECEMBER 2010

P147.51 Billion

END-JUNE 2011

P47.70 Billion

IN BILLION PESOS


Share to Banking System's Deposit LiabilitiesAs of End-June 2011

U/KBs

88.7%

TBs

8.9%

R/CBs

2.4%


Main Source of Deposit GrowthAs of End of Periods Indicated

(100.0)

0.0

100.0

200.0

300.0

400.0

Peso Savings Peso Demand & NOWForeign Currency Deposit Peso Time & LTNCD


First Semester 2011


!"#$%&"'())( *+%",-" ./0" !01(20*."3 4*.0!56!7018" ./0"9 5" $":0!0;" <=+">67 *6)"? @0!*A0*." / )2(*B" C=%="50!30*." !"#=8DE=%F"'())( *G"<H+"#!(@6.0"I !5 !67 *1"6."=E%="50!30*." !"#HH$%$"'())( *"6*2"<$+"? @0!*A0*.",:*02"6*2"I *.! ))02"I !5 !67 *1"<?,II1+"6."J%$"50!30*." !"#=HH%D"'())( *%

Deposit Liabilities

K1" 6" /(B/)L" )0@0!6B02" (*241.!L8" 205 1(." )(6'()(701"!0A6(*02"./0"(*241.!LM1"A6(*"1 4!30" -"-4*21"6."C$%D"50!30*."<2 :*"-! A"CE%$"50!30*."6"L06!"6B +" -"./0"(*241.!LM1". .6)"!01 4!301%"K1" -"0*2NO4*0"HD==8". .6)"205 1(.")(6'()(701"1. 2"6."#F8ECE%$8"/(B/0!"'L"#$P&%J"'())( *"./6*"./0"#F8HDE%E"'())( *"6"L06!"6B %"9/0"J%J"50!30*."0Q56*1( *"(*"205 1(.")(6'()(701"20A *1.!6.02"./0"141.6(*02"54')(3"3 *R20*30"(*"./0"4*(@0!16)"6*2"3 AA0!3(6)"'6*S(*B"1L1.0A%"K1"6"A6T0!" -"-63.8"./0"4*(@0!16)"6*2"3 AA0!3(6)"'6*S1"3 !*0!02"./0")6!B01."1/6!0" <JJ%C" 50!30*.+" -" ./0" '6*S(*B" 1L1.0AM1" . .6)"205 1(.")(6'()(701%

#01 "16@(*B1"633 4*."' 4L02"./0"(*241.!LM1"B! :(*B"205 1(." '610" :(./" 6" =E%=" 50!30*." <#HH&%J" '())( *+"/(S0" . " #=8CF&%P" '())( *" 6*2" 633 4*.02" - !" PH%H"50!30*." -"./0"B! :./"(*"./0"(*241.!LM1"205 1(."'610%"9/0" =H%E" 50!30*." <#&C%P" '())( *+" B! :./" (*" (*.0!01."!6.0" 10*1(7@0" 501 " 7A0" 205 1(.1" 6*2" ) *B" .0!A"*0B 76')0" 30!7R36.01" -" 205 1(." <U9>IV+" " A620"45" HP%F" 50!30*." -" ./0" (*3!0610" (*" . .6)" 205 1(."'610" :/()0" 501 " 20A6*2" 6*2" *0B 76')0" !20!" -":(./2!6:6)" <>,W+" 5 1.02" 6" B! :./" -" &%$" 50!30*."<#CE%$"'())( *+8"./0!0'L"3 *.!('47*B"HD%F"50!30*.". ". .6)" 205 1(." 0Q56*1( *%" X*" 3 *.!61.8" 6" $%D" 50!30*."1)4A5"(*"- !0(B*"34!!0*3L"205 1(.1":61"!03 !202"6*2"1)61/(*B" 6" . .6)" -" #$$%D" '())( *" -! A" . .6)" 205 1(."B! :./" -"./0"(*241.!L%

Y06*7A08" ./0" 1.!0*B./0*(*B" -" ./0" #/()(55(*0"34!!0*3L"6B6(*1."./0"Z["2 ))6!"!014).02". "./0"1.! *B"(*\ :"(*"6))"501 "205 1(."633 4*.1%"K33 !2(*B)L8"./0"1/6!0" -" 501 " 205 1(.1" . " . .6)" 205 1(." )(6'()(701"A @02"45". "CP%&"50!30*."-! A"CF%D"50!30*."6"L06!"6B ":/()0"./0"1/6!0" -"- !0(B*"34!!0*3L"205 1(.1"1)(2". "H$%="50!30*."-! A"HP%D"50!30*.%

KA *B" ./0" 501 " 205 1(." 633 4*.18" ./0" (*241.!LM1"/ )2(*B1" -"1/ !.N.0!A"6*2" ) :N3 1."20A6*28">,W"6*2" 16@(*B1" 633 4*.1" 1)(B/.)L" (*3!06102" . " CE%D"50!30*." -". .6)"501 "205 1(.1"-! A"L06!"6B M1"CF%&"50!30*." :/()0" ./0" (*@0*. !L" -" ./0" !0)67@0)L" /(B/"3 1."7A0"205 1(.1":0*."2 :*". "HE%D"50!30*."-! A"HE%="50!30*.%"

X*"./0"16A0"A6**0!8"./0"1/6!0" -") *BN.0!A"- !0(B*"34!!0*3L"20* A(*6.02"7A0"205 1(.1". ". .6)"- !0(B*"34!!0*3L"205 1(.1"203)(*02". "E$%F"50!30*."-! A"L06!"6B M1" EJ%E" 50!30*.8":/()0" - !0(B*" 34!!0*3L"20A6*2"6*2"16@(*B1"633 4*.1":0*."45". "FP%P"50!30*."-! A"F=%E"50!30*."6"L06!"6B %

9/0"B0*0!6)"203)(*0"(*"(*.0!01."!6.01" ]0!02". "6))".L501" -"205 1(.1"3 45)02":(./"./0"1/(^(*B" -"205 1(. !1M"5!0-0!0*30" . " )011" (*.0!01." !6.0" 10*1(7@0" 20A6*2_>,W"6*2" 16@(*B1"205 1(.1" 0*6')02" ./0" (*241.!L" . "!02430" (*.0!01."0Q50*101"'L"H%$"50!30*." (*"./0"R!1."/6)-" -"HD==%"9/(1"1455 !.02"./0"$%D"50!30*."B! :./"(*"(*.0!01."(*3 A0"6*2"4)7A6.0)L"141.6(*02"./0"5 1(7@0"*0."(*.0!01."A6!B(*" -"./0"(*241.!L"24!(*B"./0"50!( 2%

Y 1." -" ./0" (*241.!LM1" 205 1(." )(6'()(701" :0!0" 17))"3/6**0)02" . " ) 6*1%" 9/0" -61.0!" )0*2(*B" 637@(701" -"./0" (*241.!L" -4!./0!" !6(102" ) 6*1N. N205 1(.1" !67 1". "PP%&"50!30*." -! A"L06!"6B M1"PF%$"50!30*." !67 %"Y06*:/()08" 6" 1(B*(R36*." 5 !7 *" -" ./0" (*241.!LM1"-4*21" :0!0" 6)1 " 2(!03.02" . :6!21" )011" !(1S(0!"(*1.!4A0*.1"143/"61"B @0!*A0*."1034!(7018"̀ `#1"6*2"[VK1%"

Universal and Commercial Banking

Deposit Mix

0.0

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

3,500.0

4,000.0

June 2010 June 2011



P 3,114.0 Billion

P 3,516.7 Billion

74.9%

25.0%25.1%

75.0%

in P Billion

0.0

200.0

400.0

600.0

800.0

1,000.0

1,200.0

June 2010 June 2011



Foreign Currency Deposits

P 1,091.6 BillionP 1,058.6 Billion

41.5%

53.4%58.5%

46.6%

in P Billion

Peso Deposits


K3! 11"14'B! 4518"5!(@6.0"2 A0173"4*(@0!16)"'6*S1"-40)02"./0"(*241.!LM1"B! :./"(*"205 1(.")(6'()(701":(./"6" L06!N *NL06!" (*3!0A0*." -" &%P" 50!30*." !" #HJ$%$"'())( *%" ? @0!*A0*." '6*S1" 36A0" (*" 103 *2" :(./"=E%C"50!30*." !"#J$%D"'())( *"'4()2N45":/()0" - !0(B*"'6*S1"/62"./0"1A6))01." (*3!0A0*." -"H%F"50!30*." !"#=D%=" '())( *%" ,*" ./0" ./0!" /6*28" 5!(@6.0" 2 A0173"3 AA0!3(6)" '6*S1" 5 1.02" 6" 205 1(." 3 *.!637 *" 'L"H%H"50!30*." !"#P%C"'())( *%

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

K)A 1."6))" <&&%D"50!30*." !"#F8EH&%P"'())( *+" -" ./0"(*241.!LM1"205 1(." )(6'()(701" ":0!0"633 4*.1"/0)2"'L"!01(20*.1%",-":/(3/8"CC%="50!30*." <#$8F&F%H"'())( *+":0!0" ) 2B02" (*" 501 " 205 1(.1" :/()0" ./0" 1A6))0!"5 !7 *" -" HH%&" 50!30*." <#=8D$E%E" '())( *+" :0!0" (*"- !0(B*"34!!0*3L"205 1(.1%"K"A06B0!"=%D"50!30*." !"#FE%C" '())( *" :0!0" 205 1(.1" /0)2" 'L" * *N!01(20*.1"6*2" ./010":0!0" 6)A 1." 0a46))L" 5)6302" (*" 501 " 6*2"- !0(B*"34!!0*3L"205 1(.1%

Capitalization

K1" -" 0*2NO4*0" HD==8" . .6)" 365(.6)" 633 4*.1" -" ./0"4*(@0!16)"6*2"3 AA0!3(6)"'6*S(*B"(*241.!L"0Q56*202"'L"=P%$"50!30*."<#=DF%F"'())( *+". "#CFE%J"'())( *"-! A"L06!"6B M1"#PF=%F"'())( *%"

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Universal and Commercial Banking

Deposit Liabilities

Residents vs. Non-Residents

June 2010

Residents - Peso

Residents - Foreign Currency

Non-Residents - Peso

Non-Residents - Foreign Currency

June 2011

Residents - Peso

Residents - Foreign Currency

Non-Residents - Peso

Non-Residents - Foreign Currency


Main Source of Capital GrowthAs of End of Periods Indicated

(In Billion Pesos)

(5.0)

5.0

15.0

25.0

35.0

45.0

55.0

65.0

75.0

85.0

95.0

Capital Stock Assigned CapitalNet Due to H. O. Surplus, Surplus Reserves & Undivided ProfitsOther Equity Instruments

End-JUNE 2010

P76.97 BillionEND-JUNE 2011

P104.34 Billion


Breakdown of Total Capital Accounts

Assigned

Capital

3.3%

Capital Stock

44.1%

Net Due to H.

O.

11.3%

Surplus,

Surplus

Reserves &

Undivided

Profits

37.6%

Other Equity

Instruments

3.7%

Total Capital Accounts - P 745.8 Billion


First Semester 2011


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Comparative Capital Adequacy Ratio (CAR)

2007 2008 2009 2010March

20112007 2008 2009 2010

March

2011

(In P Billion)

Tier 1 412.6 455.2 503.7 599.4 619.3 409.2 459.2 511.4 606.9 628.4

Net Tier 1 355.2 409.2 454.3 541.2 560.8 402.2 451.6 506.0 601.4 622.7

Tier 2 93.8 119.8 141.2 143.8 142.9 97.3 123.6 146.8 150.1 147.3

Deductions 90.9 83.1 91.2 107.1 107.7 13.4 14.6 10.8 10.7 11.1

Qualifying Capital 415.4 492.0 553.7 636.2 654.5 493.1 568.1 647.4 746.2 764.6

Risk Weighted Assets (RWA) - net 2,819.3 3,321.6 3,694.4 3,919.1 3,985.3 3,095.0 3,621.3 4,043.2 4,320.3 4,389.8

(In Percent)

Capital Adequacy Ratio 14.7 14.8 15.0 16.2 16.4 15.9 15.7 16.0 17.3 17.4

Net Tier 1 Ratio 12.6 12.3 12.3 13.8 14.1 13.0 12.5 12.5 13.9 14.2

ConsolidatedSolo

Commercial Banking System

Comparative CAR of Selected ASEAN Countries

Country

Malaysia 13.5% June 2011

Thailand 15.7% May 2011

Philippines 16.4% March 2011

Indonesia 17.0% June 2011

Singapore 17.0% September 2010

Source: Asia Regional Integration Center Website

CAR

(as of dates indicated)


Selected Contingent Accounts

Trade-Related Contingent

Accounts

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First Semester 2011


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Bank Commitments

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Derivatives

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