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)9.02 AFS SecuritiesAFS securities consist of the following:BDO Unibank Group Parent BankNote 2011 2010 2011 2010Government debtsecurities P 55,267 P 52,580 P 52,583 P 49,958Other debt securities:Quoted 29,508 30,366 28,951 28,364Not quoted 253 243 253 243Equity securities:Quoted 5,555 6,197 1,877 2,960Not quoted 2,292 2,099 925 72692,875 91,485 84,589 82,251Allowance forimpairment 14 ( 2,950) ( 5,811) ( 1,658) ( 4,526 )As to currency, this account is composed of the following:P 89,925 P 85,674 P 82,931 P 77,725BDO Unibank Group Parent Bank2011 2010 2011 2010Foreign currencies P 66,152 P 48,040 P 63,023 P 44,791Peso 23,773 37,634 19,908 32,934P 89,925 P 85,674 P 82,931 P 77,725Government debt securities issued by the ROP and foreign sovereigns and other debtsecurities issued by resident and non-resident corporations earn interest at annual ratesranging from 0% to 13% in 2011, 0% to 12% in 2010, and 0% to 13% in 2009 both in theBDO Unibank Group and Parent Bank financial statements.As of December 31, 2011 and 2010, other debt securities also include investments in foreignfinancial institutions under bankruptcy amounting to P1,229 and P4,016, respectively, withallowance for impairment on such investments amounted to P1,229 and P4,016, respectively,in the Parent Bank financial statements (see Note 10 for the related interbank loan receivablesfrom these financial institutions). In 2011, the Parent Bank disposed fully impaired debtsecurities issued by a foreign financial institution under bankruptcy amounting to P2,295.The sale resulted to a gain of P640 and is presented as part of Trading gain – net under OtherOperating Income and Expenses (see Note 22). Also, in 2011, collateralized debt obligationsamounting to P477, with full allowance for impairment losses, in the Parent bank financialstatements, respectively, were redeemed at zero.Unquoted equity securities consist of preferred shares and common shares of various unlistedlocal companies.