2011 Annual Report Financial Supplements - BDO

NOTES TOFINANCIAL STATEMENTSDECEMBER 31, 2011, 2010 AND 2009(Amounts in Millions of Philippine Pesos, Except Per Share Data or As Indicated)On December 23, 2004, the BSP approved the Parent Bank’s application to issue in two ormore tranches of up to P5,000 worth of peso-denominated LTNCDs within one year fromdate of approval. The first tranche amounting to P2,100 was issued on June 1, 2005 andmatured on June 2, 2010 and the second tranche amounting to P2,900 was issued onNovember 23, 2005 and matured on November 24, 2010. The first tranche paid a variableinterest based on 3M PDST-F (formerly MART 1) plus 0.25% spread while the second tranchepaid a fixed rate of 9.73%. Also, on September 25, 2006, the BSP approved the Parent Bank’sapplication to issue another P5,000 LTNCDs in one tranche. The P5,000 LTNCDs, with afixed interest rate of 8.25% per annum, were issued on October 4, 2006 and matured onNovember 3, 2011. These are presented as part of Time Deposits under Deposit Liabilitiesaccount in the 2010 statement of financial position.Also on April 26, 2007, the Monetary Board (MB) of the BSP authorized BDO Private toissue up to P5,000 worth of fixed rate or zero coupon LTNCDs in one or more tranches.The first tranche, consisting of P2,191 in zero coupon LTNCDs, was issued onJune 18, 2007 and will mature on December 18, 2012. These LTNCDs are presented, net ofdiscount and included P17 in capitalized transaction costs, as part of the Time DepositLiabilities account in the statements of financial position.Under existing BSP regulations, non-FCDU deposit liabilities of the BDO Unibank Groupare subject to liquidity reserve requirement equivalent to 11.0% both in 2011 and 2010 andstatutory reserve equivalent to 10.0% and 8.0% in 2011 and 2010, respectively. As ofDecember 31, 2011, the BDO Unibank Group is in compliant with these regulations.16. BILLS PAYABLEThis account is composed of the following:BDO Unibank Group Parent Bank2011 2010 2011 2010Deposit substitutes P 17,152 P 8,304 P 17,149 P 8,031Foreign banks 13,694 26,096 13,694 25,876Senior notes 13,210 13,202 13,210 13,202PDIC 4,472 4,483 4,472 4,483BSP 968 1,445 968 1,445Local banks 132 131 132 131Others 9,846 12,200 1,753 2,913The breakdown of this account as to currency follows:P 59,474 P 65,861 P 51,378 P 56,081BDO Unibank Group Parent Bank2011 2010 2011 2010Peso P 14,909 P 26,036 P 6,813 P 16,476Foreign currencies 44,565 39,825 44,565 39,605P 59,474 P 65,861 P 51,378 P 56,081