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)1. CORPORATE MATTERS1.01 Incorporation and OperationsBDO Unibank, Inc. (formerly Banco de Oro Unibank, Inc., the Bank, BDO Unibank or theParent Bank) was incorporated in the Philippines on August 16, 1967 to engage in thebusiness of banking. It was authorized to engage in trust operations on January 5, 1988 and inforeign currency deposit operations on November 23, 1990. The Bangko Sentral ng Pilipinas(BSP) granted approval to the Parent Bank to operate as an expanded commercial bank onAugust 5, 1996. The Parent Bank commenced operations as such in September of the sameyear. The Parent Bank and its subsidiaries (collectively referred to as the BDO UnibankGroup) offer a wide range of commercial, investment, private and other banking services.These services include traditional loan and deposit products, as well as treasury, assetmanagement, realty management, leasing and finance, remittance, trade services, retail cashcards, insurance, credit card services, stockbrokerage, trust and others.On January 29, 2011, the Parent Bank’s Board of Directors (BOD) approved the change inthe Bank registered name from Banco De Oro Unibank, Inc. to BDO Unibank, Inc. Thechange in the Bank’s registered name was approved by the Philippine Securities and ExchangeCommission (SEC) on November 4, 2011.As a banking institution, the BDO Unibank Group’s operations are regulated and supervisedby the BSP. In this regard, the BDO Unibank Group is required to comply with the rules andregulations of the BSP such as those relating to maintenance of reserve requirements ondeposit liabilities and deposit substitutes and those relating to the adoption and use of safeand sound banking practices, among others, as promulgated by the BSP. BDO UnibankGroup is subject to the provisions of the General Banking Law of 2000 [Republic Act (RA)No. 8791].The Parent Bank’s common shares are listed in the Philippine Stock Exchange (PSE). As ofDecember 31, 2011, the Parent Bank has 744 branches (including one foreign branch) and934 on-site and 662 off-site automated teller machines. The Parent Bank’s registered addressis at BDO Corporate Center, 7899 Makati Avenue, Makati City.The BDO Unibank Group operates mainly within the Philippines with a banking branch inHong Kong and various remittance subsidiaries operating in Asia, Europe and the UnitedStates. In 2011, 2010 and 2009, these foreign operations accounted for 0.5%, 0.4% and 1.0%,respectively, of the BDO Unibank Group’s total revenues and 1.1%, 0.1% and 1.1%,respectively, of the BDO Unibank Group’s total resources. The BDO Unibank Group’ssubsidiaries and associates are shown in Note 13.01.