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)Exposure to credit risk also includes unused commercial letters of credits and committedcredit lines amounting to P33,391 and P111,469, respectively, for 2011 and P30,991 andP89,694, respectively, for 2010 in the BDO Unibank Group financial statements and P33,391and P110,148, respectively, for 2011 and P30,991 and P89,618, respectively, for 2011 in theParent Bank financial statements (see Note 31.03).4.02.04.02 Collateral Held as Security and Other Credit EnhancementsBDO Unibank Group holds collateral against loans and receivables from customers in theform of mortgage interests over property, other registered securities over assets, andguarantees. Estimates of fair value are based on the value of collateral assessed at the time ofborrowing and are updated periodically, e.g., annually for real estate properties, as provided inthe Parent Bank’s Credit Policy Manual. Collateral generally is not held over due from otherbanks, interbank loans and investment securities, except when securities are held as part ofreverse repurchase and securities borrowing activity. BDO Unibank Group holds collateralagainst loans and other receivables in the form of property, debt securities, equities andothers.Estimate of the fair value of collateral and other security enhancements held against thefollowing loans and other receivables risk groupings as of December 31 follows:BDO Unibank Group Parent Bank2011 2010 2011 2010Individually impairedProperty P 16,358 P 20,821 P 16,290 P 20,678Equity 709 118 398 -Others 19,968 6,776 19,894 6,37237,035 27,715 36,582 27,050Collectively impairedProperty 5,069 4,636 5,069 4,636Others 1,262 200 1,262 2006,331 4,836 6,331 4,836Past due but not impairedProperty 5,300 6,574 5,299 6,573Equity 1 1 - -Others 2,755 863 2,746 8548,056 7,438 8,045 7,427Neither past due nor impairedProperty 264,652 267,958 264,161 267,148Debt security 1,314 1,027 1,203 899Equity 96,380 5,472 87,458 -Others 397,615 130,754 391,625 123,002759,961 405,211 744,447 391,049P 811,383 P 445,200 P 795,405 P 430,362