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)27.4 Documentary Stamp Tax (DST)Documentary stamp taxes (at varying rates) are imposed on the following:a. Bank checks, drafts, or certificate of deposit not bearing interest, and other instruments;b. Bonds, loan agreements, promissory notes, bills of exchange, drafts, instruments and securities issued by the Government or any of itsinstrumentalities, deposit substitute debt instruments, certificates of deposits bearing interest and other not payable on sight or demand;c. Acceptance of bills of exchange and letters of credit; and,d. Bills of lading or receipt.On February 7, 2004, RA 9243 was passed amending the rates of DST, the significant provisions of which are summarized below(in absolute amounts):a. On every issue of debt instruments, there shall be collected a DST of P1.00 on each P200 or fractional part thereof of the issue price ofany such debt instrument. Provided, that for such debt instruments with terms of less than one year, the DST to be collected shall be of aproportional amount in accordance with the ratio of its term in number of days to 365 days. Provided further that only one DST shall beimposed on either loan agreement or promissory notes to secure such loan.b. On all sales or transfer of shares or certificates of stock in any corporation, there shall be collected a DST of P0.75 on each P200, orfractional part thereof, of the par value of such stock.c. On all bills of exchange or drafts, there shall be collected a DST of P0.30 on each P200, or fractional part thereof, of the face value of anysuch bill of exchange or draft.d. The following instruments, documents and papers shall be exempt from DST:• Borrowings and lending of securities executed under the Securities Borrowing and Lending Program of a registered exchange, or inaccordance with regulations prescribed by the appropriate regulatory authority;• Loan agreements or promissory notes, the aggregate of which does not exceed P250,000 or any such amount as may be determinedby the Secretary of Finance, executed by an individual for his purchase on installment for his personal use;• Sale, barter or exchange of shares of stock listed and traded through the local stock exchange for a period of five years from theeffectivity of RA 9243;• Fixed income and other securities traded in the secondary market or through an exchange;• Derivatives including repurchase agreements and reverse repurchase agreements;• Bank deposit accounts without a fixed term or maturity; and,• Interbank call loans with maturity of not more than seven days to cover deficiency in reserve against deposit liabilities.28. EARNINGS PER SHAREBasic earnings per share were computed as follows:Group2008 2007 2006Net income attributable to shareholders of the Parent Bank P 2,182 P 6,518 P 3,970Dividends in arrears ( 84 ) - -Total basic net income P 2,098 P 6,518 P 3,970Divided by the weighted average numberof outstanding common shares (in millions) 2,302 2,281 1,287Basic earnings per share P 0.91 P 2.86 P 3.0876Thinking Ahead To Get You Ahead • Annual Report 2008
Notes to Financial StatementsDECEMBER 31, 2008, 2007 AND 2006(Amounts in Millions Except Per Share Data)Diluted earnings per share computed as follows:Group2008 2007 2006Net income attributable to shareholders of the Parent Bank P 2,182 P 6,518 P 3,970Interest expense on convertible loan, net of tax - - 21Total diluted net income P 2,182 P 6,518 P 3,991Divided by the weighted average numberof outstanding common shares (in millions):Outstanding common shares 2,302 2,281 1,287Potential common shares from assumedconversion of convertible loans - - 29Potential common shares from assumedconversion of preferred shares 125 - -Potential common shares from assumedconversion of stock option plan 3 3 3Total weighted average numbers common shares after conversion 2,430 2,284 1,319Diluted earnings per share P 0.90 P 2.85 P 3.03Basic earnings per share were computed as follows:Parent Bank2008 2007 2006Net income P 1,479 P 7,671 P 3,244Dividends in arrears ( 84 ) - -Total basic net income P 1,395 P 7,671 P 3,244Divided by the weighted average numberof outstanding common shares (in millions): 2,302 2,281 1,287Basic earnings per share P 0.61 P 3.36 P 2.52Diluted earnings per share were computed as follows:Parent Bank2008 2007 2006Net income P 1,479 P 7,671 P 3,244Interest expense on convertible loan, net of tax - - 21Total diluted net income 1,479 7,671 3,265Divided by the weighted average numberof outstanding common shares (in millions):Outstanding common shares 2,302 2,281 1,287Potential common shares from assumedconversion of convertible loans - - 29Potential common shares from assumedconversion of convertible preferred shares 125 - -Potential common shares from assumedconversion of stock option plan 3 3 3Total weighted average common sharesafter conversion 2,430 2,284 1,319Diluted earnings per share P 0.61 P 3.36 P 2.48Thinking Ahead To Get You Ahead • Annual Report 2008 77
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ATTUNED TO THE TIMES, WE AREALWAYS
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Financial HighlightsIn Billion Peso
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Report of Independent AuditorsTo th
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Income StatementsFor the Years Ende
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Cash Flow StatementsFOR THE YEARS E
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Notes to Financial StatementsDECEMB
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Notes to Financial Statements - BDO

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