Notes to Financial Statements - BDO

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Notes to Financial StatementsDECEMBER 31, 2008, 2007 AND 2006(Amounts in Millions Except Per Share Data)The breakdown of total loans as to secured and unsecured follows:GroupParent Bank2008 2007 2008 2007Secured:Real estate mortgage P 74,475 P 61,779 P 73,502 P 60,809Chattel mortgage 30,851 19,696 24,458 13,474Other securities 64,892 40,182 64,822 40,102170,218 121,657 162,782 114,385Unsecured 222,576 175,373 221,002 171,930The breakdown of total loans as to type of interest rate follows:P 392,794 P 297,030 P 383,784 P 286,315GroupParent Bank2008 2007 2008 2007Variable interest rates P 292,115 P 197,730 P 285,009 P 196,860Fixed interest rates 100,679 99,300 98,775 89,455P 392,794 P 297,030 P 383,784 P 286,315Loans and other receivables bear annual interest rates of 0.0% to 51.1% per annum in 2008, 1.1% to 41.7% in 2007 and 1.5% to 58.6% in 2006in the Group and Parent Bank financial statements.The Bank’s receivables from customers amounting to P6,807 and P257 as of December 31, 2008 and 2007, respectively, were pledged ascollaterals with the BSP to secure borrowings under rediscounting privileges. In addition, receivables from customers amounting P55 andP172 as of December 31, 2008 and 2007, respectively, have been rediscounted under the Development Bank of the Philippines, Land Bank ofthe Philippines and SSS rediscounting facilities.On May 30, 2008, the Bank reclassified CLDs included under other receivables with carrying amount of P438 to AFS (see Note 9.2).In 2008, the Group reclassified to loans and receivables CLNs linked to ROPs (classified as AFS) and the embedded derivatives (classified asFVTPL) with total fair value, as of the date of reclassification, of P18,590 and (P183), respectively (see Note 9.4). The related accrued interestreceivables of CLNs amounting to P1,812 was also transferred to loans and receivables.11. PREMISES, FURNITURE, FIXTURES AND EQUIPMENTThe gross carrying amounts and accumulated depreciation and amortization at the beginning and end of 2008 and 2007 are shown below:GroupLeasehold Furniture,Rights and Fixtures andLand Buildings Improvements Equipment TotalDecember 31, 2008Cost P 4,956 P 5,357 P 1,768 P 14,625 P 26,706Accumulateddepreciation andamortization - ( 1,500 ) ( 339 ) ( 10,191 ) ( 12,030 )Net carrying amount P 4,956 P 3,857 P 1,429 P 4,434 P 14,676December 31, 2007Cost P 4,876 P 4,482 P 1,445 P 12,507 P 23,310Accumulateddepreciation andamortization - ( 1,619 ) ( 578 ) ( 9,707 ) ( 11,904 )Net carrying amount P 4,876 P 2,863 P 867 P 2,800 P 11,40650Thinking Ahead To Get You Ahead • Annual Report 2008
Notes to Financial StatementsDECEMBER 31, 2008, 2007 AND 2006(Amounts in Millions Except Per Share Data)Parent BankLeasehold Furniture,Rights and Fixtures andLand Buildings Improvements Equipment TotalDecember 31, 2008Cost P 4,956 P 5,238 P 1,644 P 12,629 P 24,467Accumulateddepreciation andamortization - ( 1,438 ) ( 270 ) ( 9,873 ) ( 11,581 )Net carrying amount P 4,956 P 3,800 P 1,374 P 2,756 P 12,886December 31, 2007Cost P 4,876 P 4,199 P 1,265 P 10,071 P 20,411Accumulateddepreciation andamortization - ( 1,400 ) ( 453 ) ( 7,621 ) ( 9,474 )Net carrying amount P 4,876 P 2,799 P 812 P 2,450 P 10,937A reconciliation of the carrying amounts at the beginning and end of 2008 and 2007, of premises, furniture, fixtures and equipment is shownbelow:GroupLeasehold Furniture,Rights and Fixtures andLand Buildings Improvements Equipment TotalBalance at January 1, 2008,net of accumulateddepreciation and amortization P 4,876 P 2,863 P 867 P 2,800 P 11,406Additions 190 1,207 874 2,985 5,256Disposals ( 110 ) ( 5 ) ( 8 ) ( 55 ) ( 178 )Depreciation and amortizationcharges for the year - ( 209 ) ( 304 ) ( 1,295) ( 1,808 )Balance at December 31, 2008,net of accumulateddepreciation and amortization P 4,956 P 3,856 P 1,429 P 4,435 P 14,676Balance at January 1, 2007,net of accumulateddepreciation and amortization P 4,889 P 2,796 P 702 P 2,986 P 11,373Additions 1 362 471 2,140 2,974Disposals ( 14 ) ( 24 ) ( 51 ) ( 940 ) ( 1,029 )Depreciation and amortizationcharges for the year - ( 271 ) ( 255 ) ( 1,386 ) ( 1,912 )Balance at December 31, 2007,net of accumulateddepreciation and amortization P 4,876 P 2,863 P 867 P 2,800 P 11,406Thinking Ahead To Get You Ahead • Annual Report 2008 51
Page 1 and 2: ATTUNED TO THE TIMES, WE AREALWAYS
Page 3 and 4: Financial HighlightsIn Billion Peso
Page 5 and 6: Report of Independent AuditorsTo th
Page 7 and 8: Income StatementsFor the Years Ende
Page 9 and 10: Cash Flow StatementsFOR THE YEARS E
Page 11 and 12: Notes to Financial StatementsDECEMB
Page 19: Notes to Financial StatementsDECEMB
Page 84: BDO Corporate Center7899 Makati Ave

Notes to Financial Statements - BDO

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