ANNUAL REPORT 2015 D AnnualAnAnnunualal ReportRepporort 2015202015 to come. years many more for and customers—now our for bank best the tobe strive to continue and ones, new start relationships, existing deepen businesses, its diversify reach, its expand growth, its tosustain endeavors Bank the as fullofpromise, day anew heralds sunrise emerging the horizon, the On 2020. in year centennial its towards ahead forges theBank enduring partnerships—as of alegacy and heritage, rich strength, financial solid ofits foundations the a journey upon of transformation—set anchoring ofstrength China Bank’s pillars illustrates cover Report year’s Annual This About TheCover
58 10 64 32 57 36 34 26
CONTENTS 4 2
Awards andRecognition
Management Committee Board ofDirectors Corporate Governance Consumer Protection Corporate SocialResponsibility Human Resources Operating Highlights Message toStockholders Performance Highlights
1 Annual Report 2015 . • Integrity • PerformanceHigh Standards • Quality to Commitment • ServiceCustomer Focus • People for Concern • Efficiency • Resourcefulness/Initiative Core Values Core Vision be will we history, our rich from strength Drawing financial best,the innovative most and admired, our customers, with partnering services institution, creation wealth in shareholders and employees, Mission quality of provider be a leading will We institutions, to delivered services consistently entrepreneurs, and individuals, here andabroad, rising needsand exceed financial their meet to expectations. of be primary a catalyst creation the in will We to our customers, for a desire by driven wealth motivated a highly through succeed, them help professionals, empowered and competent of team needs in-depth by guided and their of knowledge supported leading-edge by technology. standards, highest the ethical maintain will We respect with to fairness and responsibility sense of our customers, the shareholders, and employees, serve. we communities Senior Officers Management Directory Financial Statements China Bank Branches China Bank Off-Branch ATMs China Bank Off-Branch Business Offices Subsidiaries and Affiliates Products and Services Investors Information
95th Anniversary and Timeline
China Bank Savings Branches
72 74 70 67
178 188 192 196 197 199 200 PERFORMANCE HIGHLIGHTS
NET INCOME RETURNR ON EQUITY TOTAL RESOURCES TOTALT DEPOSITS In Billion Pesos InI % In Billion Pesos InI Billion Pesos
Annual Report 2015 600 6 15 500 2
5 5.6 12 527 5.1 5.1 5.1 13.81 5.0 400
4 471 12.22 439 11.31 9 414 399 9.91 300
3 9.62 354 6 324 200 2 272 263 216 1 3 100
0 0 0 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
STOCKHOLDERS’ EQUITY TOTALT CAR EARNINGS PER SHARE In Billion Pesos InI % In Pesos
60 20 3
50 59.2 56.6 15 3.02 40 2 2.76 45.4 2.75 2.74 2.71 16.34 16.00 42.7 15.39 14.88 30 39.6 10 13.50 40 16.00 1 20 5 10 0 0 0 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
CASH DIVIDENDS PAID STOCKSTS DIVIDENDS PAID BRANCHES ATMA In Billion Pesos InI Billion Pesos
1.6 700 1.7 740 1.6 1.4 1.6 600 661 1.4
1.2 1.4 500 1.3 1.3 1.3
1.0 561 517 1.2 400 511 475 1.1 0.8 470 40 16.00 300
0.6 367 316 0.4 200 293 0.2 2012 100 0 0 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2013 2014 2015 For the Year (In Thousand Pesos) Net Interest Income 9,935,991 14,088,747 15,085,184 Non-Interest Income 5,160,592 4,759,277 4,487,142 Operating Income 15,096,583 18,848,024 19,572,326 Provision for Impairment & Credit Losses 414,336 440,901 966,574 Operating Expenses 8,907,264 11,727,211 12,193,207 Net Income Attributable to Equity Holders of the Parent Bank 5,103,258 5,117,832 5,606,666
At Year End (In Thousand Pesos) Total Resources 413,697,923 471,220,813 526,826,963 Loan Portfolio(Net) 220,540,903 290,418,730 309,761,777 Investment Securities 66,921,227 59,026,895 71,209,973 Total Deposits 354,268,203 399,301,544 439,265,686 Stockholders’ Equity 45,399,699 56,567,483 59,170,904 Number of Branches 367 470 517 Number of ATMs 561 661 740 Number of Employees 5,594 7,245 7,540
Key Performance Indicators (in %) Profitability Return on Average Equity 11.31 9.91 9.62 Return on Average Assets 1.45 1.12 1.17 Net Interest Margin 2.98 3.30 3.37 Cost to Income Ratio 59.00 62.22 62.30 Liquidity Liquid Assets to Total Assets 42.80 32.89 36.09 Loans to Deposit Ratio 62.25 72.73 70.52 Asset Quality Non-Performing Loans Ratio 1.99 2.24 2.52 NPL Cover 146.62 101.25 87.73 Capitalization Capital Adequacy Ratio (CET 1/Tier 1) 14.50 13.95 12.58 Capital Adequacy Ratio (Total CAR) 15.39 14.88 13.50
Shareholder Information Market Value Market Price Per Share (In Pesos) 49.591/ 43.521/ 37.20 Market Capitalization (In Thousand Pesos) 84,232,038 80,671,473 68,958,700 Valuation Earnings Per Share (In Pesos) 2.751/ 2.761/ 3.02 Book Value Per Share (In Pesos) 24.491/ 30.511/ 31.92 Price to Book Ratio (x) 2.03 1.43 1.17 Dividends 3 Cash Dividends Paid (In Thousand Pesos) 1,557,449 1,589,272 1,716,414
Cash Dividends Per Share (In Pesos) 1.2 1.0 1.0 Annual Report 2015 Cash Payout Ratio (In %) 31.04 31.14 33.54 Cash Dividend Yield (In %) 2.42 2.30 2.69 Stock Dividends Paid (In Thousand Pesos) 1,297,874 1,271,428 1,373,131 Stock Dividends Per Share (in %) 10 8 8
1/ Restated to show the cumulative effects of stock dividends. 4 4 AnnualAnnual Report Report2015 2015 MESSAGE TO STOCKHOLDERS TO OUR STOCKHOLDERS AND FRIENDS,
The global economy entered a new phase of volatility and The stability of the financial system coupled with the low uncertainty, marked by the gradual tightening of US monetary inflation rate gave the Bangko Sentral ng Pilipinas (BSP) ample policy, conflict in the Middle East, and plunging oil and room to keep its policy rates unchanged even as it opened up commodity prices. Falling demand for petroleum combined the banking industry to six new foreign banks and approved with the lack of OPEC production quotas contributed to the the opening of 227 new branches. The liberalization of the oversupply in the oil markets—which adversely affected the commercial banking sector was among the policy initiatives energy, construction, and shipping sectors. Concerns over preparatory to the integration of the ASEAN banking a possible recession triggered a widespread sell-off in the community by 2020. stock markets, a flight to safer investments, and in the case of China, the voluntary suspension of market trading by over The year also saw BSP raising its standards on credit half of their listed companies and the devaluation of the management and capital adequacy. By compelling local banks Yuan. China’s move to shift its economy away from rapid to compete at a higher level — tighten lending standards, growth fueled by exports, manufacturing, and easy credit limit loan concentrations and build up their common equity has dampened the prospects for many of its trading and base to cushion against business risks — the new regulations investment partners. Given the volatility of the financial and would bring the system up to ASEAN best-in-class standards. capital markets, the US Federal Reserve carefully calibrated As of September 2015, industry CAR had improved to the timing of its policy rate hikes with the pace of the 16.40% from 16.19% in December 2014 as banks bolstered recovery in their labor and property markets. their equity base by issuing stocks and Tier 2 notes.
Besides the evolving regulatory and 2015 marked a major milestone in China Bank’s 95-year competitive environment, history: continued network expansion, China Bank Savings the banking industry faced volatility in the forex, debt, and equity and Plantersbank merger, launching of our credit card, our markets as negative sentiment own investment house, first full-year on bancassurance and scarcity of investment options business with a bigger equity stake, and roll out of a new limited opportunities to generate gains from securities trading and robust core banking system. interest accruals. Net margins compressed as market rates fell close to record lows given the The sustained rebound in the US markets set off capital accommodative monetary policy and liquidity overhang. movements from emerging markets like the Philippines— Meanwhile, growth rates for the industry’s assets decelerated which saw sharp corrections in its stock market and a 5% to 8% in 2015 from 12% in the previous year while that depreciation of the peso to P47.17: US$1 by the year- for loans sharply declined to 12% from 20% in 2014. This 5 end. Despite the impact of the El Niño phenomenon on margin compression and slowdown in volume growth 5
the agricultural sector, the country’s macro-fundamentals dragged the average ROE of the universal & commercial Annual Report 2015 remained sound, with moderate inflation, manageable deficit banking industry down to 9.80% from the prior period’s Annual Report 2015 spending, and rising manufacturing output. As personal 10.96%. consumption and revenues from services remain the bedrock of the country’s economy, GDP marginally decelerated from Despite the challenging landscape, 2015 was a milestone the previous 6.1% to 5.8%—still one of the fastest in the in China Bank’s 95-year history, as key components of our ASEAN. business plan fell into place: continued branch network Annual Report 2015
6 expansion, completion of China Bank Savings (CBS) and • CASA rose 17.77% to a new high of P227.56 billion, Planters Development Bank (PDB) merger, launching of driven by the network expansion – with the ratio of credit card services, set-up of our investment house China CASA to total deposits expanding to 51.80% from Bank Capital Corporation, first full-year operations of our 48.39% in 2014. As low-cost funds accounted for half bancassurance joint venture MCBLife with our expanded of our asset funding and as loans grew in high-yielding 40% equity stake, and the implementation of the Finacle segments, net interest margin improved to 3.37% Core Banking System. These initiatives enabled your Bank from 3.30%. to consolidate its presence in the corporate and commercial • Cost-to-income ratio was relatively steady at 62.30% segments and accelerate market penetration and revenue from 62.22% last year despite the costs of integrating build-up in the high potential consumer, retail and SME our thrift bank operations, upgrading banking markets. technology, and sustained pace of opening new branch offices. China Bank’s ratio compares favorably with the Net income rose to a new high of P5.6 billion, up 9.53% from average industry ratio of 63.59% in 2015. the prior year’s level, underpinned by the growth in lending • Equity levels grew to P 59 billion, with CET 1 and Total and accruing revenues as well as the contribution from our CAR ratios of 12.58% & 13.50%, respectively. Market investment banking and asset management businesses. capitalization has more than doubled over the last ten We likewise leveraged on the rapid expansion of our retail years due to the Bank’s consistent bottom-line results banking footprint to establish more client relationships and and dividend payout and yield. build up fee-based revenue streams and low-cost funding. • Fitch Ratings affirmed the Bank’s long-term foreign- This profit performance translated to a 9.62% return on and local-currency issuer default rating of ‘BB’, viability average equity and a 1.17% return on average assets for rating of ‘bb’ and national long term rating of ‘AA- the year. (phl)’ with a stable outlook. The ratings reflect China Bank’s sound levels of capitalization, funding, liquidity, • The Bank‘s total assets grew to P526.83 billion, and market share relative to its higher risk appetite. 11.80% higher year-on-year, mainly from the growth Capital Intelligence likewise maintained its Financial in loans and liquid assets. Strength rating at BBB- and Foreign Currency Long- • Combined resources of our two thrift bank Term Rating at BBB- for the Bank. subsidiaries: CBS and PDB, rose 11% year-on-year to • For the fourth straight year, China Bank was P76 billion, comprising 14% of the total resources. recognized by Philippine Stock Exchange at their • Net loan portfolio rose to P309.76 billion from annual Bell Awards for its commitment to the highest P290.42 billion, with consumer and commercial loans standards of corporate governance. It was the only expanding by 24% and 11%, respectively. China Bank bank in the publicly-listed company category and the gave emphasis to loans quality over credit growth, only bank among the top five awardees in each of the as we adopted more rigorous credit quality standards four years. in anticipation of BSP Circular 855 implementation. In the same manner, we booked P966.57 million in Your Bank embarked on its most rapid pace of network loan loss provisions, up 119% from the prior year. expansion over the last decade: with China Bank and CBS • Investment securities portfolio rose 21% with our opening 38 and 9 branches for the year, respectively, for renewed focus on fixed income securities business a total of 517 branches by the year-end. These continued including trading and distribution of peso- & dollar- investment will bolster China Bank’s footprint and profitably denominated bonds. HENRY SY, SR. Honorary Chairman and Advisor to the Board
improve market share, CASA growth and distribute a Due to prudent cost management, the growth of our broader variety of financial services. As a result, deposit base operating expenses was kept to 4%, keeping our cost-to- expanded by 10% to P439 billion from P399 billion on the income ratio close to their 2014 level. This dovetailed with back of the larger network. Retail Banking Business’ (RBB) our drive to efficiently leverage on our capital base as a efforts to build a sales-driven organization while developing means of sustaining the Bank’s future expansion, growth in the credit underwriting skills of its frontliners bore fruit this shareholder value, and CET 1 capital ratio well above the year, with the branches accounting for 47% of loans growth, regulatory minimum. 92% of bancassurance revenues, and 51% of consumer loan bookings. In contrast to previous periods wherein Corporate Banking actively built up their market share, 2015 centered on the As before, we endeavored to sustain our financial cross-selling to institutional and commercial accounts of performance despite the heightened pressure coming from fee-based services such as cash management, trade finance,
our accelerated business expansion and technology upgrade. and loans underwriting, besides pricing its loans based on 7 Given the tougher standards for credit underwriting and the depth of client relationship. We likewise tightened our credit administration policies to better conform to the new compression in interest spreads, China Bank focused on Annual Report 2015 strengthening its asset and funding structure, building a more parameters on related party transactions, industry exposure valuable customer base, and diversifying its recurring income limits, and risk monitoring & reporting. As we applied more streams. Net interest margin rose to 3.37% as a result of this rigor to our loan origination process and gradually shifted to balance sheet rationalization and yield enhancement strategy a more selective borrower base, the growth in gross loans that placed more emphasis on our bond dealership, wealth tapered to 7% from P298 billion last year to P 317 billion. management, and investment banking businesses. MESSAGE TO STOCKHOLDERS Annual Report 2015
8 The establishment of China Bank Capital Corporation as a 2015, from higher sales of variable life investment products at separate investment house, complemented our Corporate our branches that add more value to our client relationships. Banking business by broadening the range of products and We received the necessary regulatory approvals to merge PDB service options available to our top 1,000 clients and the top into CBS, the surviving entity. With combined resources of segment of the middle market and by creating opportunities P76 billion and network of 165 branches, our thrift banking to tap new markets that raised service charges, fees & operation would have the scale and coverage to compete in commissions income by 17% for the year. CBCC would add the high potential SME and retail segments. The merger was a value to our institutional relationships by providing advisory key component of our market segmentation strategy wherein services, expertise in loans syndication, and giving clients China Bank’s Consumer Banking business would concentrate access to China Bank’s proven placement capability. on branch referrals and developer financing, while CBS would focus on retail account acquisition, community banking, and The Bank successfully returned to the capital markets last personal lending. May 2015 with its US $158 million syndicated loan from international banks—deployed into better yielding assets as Our combined network of 517 branches will serve as the well as funding for corporate borrowers and project financing primary platform for distributing banking products, growing deals. client base, and providing front-liner service to customers. RBB restructured their branch The Bank embarked on its most ambitious corporate brand organization into 28 service areas that report to eight regional refresh program to date, which led to a more modern branch centers supported by business design and layout—with the goal of providing customers with processing centers located at key high-quality and consistent banking experience. service areas. As configured, the network would be more responsive to market developments and have the necessary credit & operational Meanwhile, we covered new ground in 2015 with the support at hand to be able to grow their business volume. It launching of China Bank MasterCard—a new channel for would empower the China Bank team in addressing customer delivering greater convenience to our clients and becoming feedback and creating more meaningful client relationships. an integral part of their lifestyles and aspirations. Our We foresee China Bank’s distribution network expanding to credit cards round out our menu of consumer products by 720 branches and over 1,000 ATMs by 2020, supporting the giving clients more flexible payment options and exclusive goal of doubling our customer base. membership privileges through various loyalty, co-branding, and promotional programs that would support the branches The successful migration of the core banking system to the and other business units in their client acquisition and more powerful Finacle Core Banking platform during the third retention programs. quarter of 2015 affirms our commitment to continuously enhance operational efficiency and service quality. This MCBLife, our bancassurance joint venture with Manulife, latest upgrade provides China Bank with the requisite marked its first year as a full-fledged insurance company technology infrastructure to handle the surge in volume developing and marketing its proprietary insurance lines. and complexity of customer transactions, broader range of Bancassurance premiums grew by 22% to P337 million in financial products and services, as well as the management and analysis of client information. By running all key business At this juncture, we must acknowledge the key role of the applications on the enhanced platform, we expect to shorten Board of Directors and Management in driving the Bank to the processing cycle for management, middle and back a new level of excellence and dynamism while keeping to office, and regulatory reports—which should improve our their vision of building the best bank for our customers. We response and decision-making times. The Bank is currently warmly welcome all new China Bankers to the fold and count preparing for the adoption of Europay MasterCard Visa (EMV) on their collective experience and knowledge to enrich and technology for its ATMs and card products to strengthen strengthen our organization, as we meet the challenges of a the security of client data and processes. Similarly, we have fast-changing and highly competitive industry. We also thank programmed the upgrade of our online and mobile banking, our clients and stakeholders for supporting us throughout our cash management, remittance, Treasury, and Trust systems— 95 years in business, and sincerely hope to be continuing part enabled by our robust platform—to provide an integrated of their success in the coming years. customer experience.
The Bank embarked on its most ambitious corporate brand refresh program to date, which led to a more modern branch design and layout—with the goal of providing customers with high-quality and consistent banking experience. The centerpiece of this program was the branch redesign project HANS T. SY which modernized the look and feel of a China Bank branch Chairman of the Board & the and transformed the branch into a customer-friendly, familiar Executive Committee yet efficient venue for delivering and cross-selling the China Bank brand of quality service. We opened our pilot branch at BGC-One World Place branch in August, followed by the Cebu- SM Seaside City branch in November, and expect to omplement this branch design at all our new branches and eventually, at all branch offices nationwide. GILBERT U. DEE Vice-Chairman Our China Bank family has grown to over 7,500 officers and employees with the ongoing business expansion and series of banking acquisitions. We note that over half of our people are now based in the branches—where the majority is located outside the National Capital Region. With the increasing dispersion, the challenge for our Human Resources Division RIRICARDOCARDO R. CCHUAHUA 9 would be fast-tracking the development of key marketing President & Chief Executive Officer skills and service orientation among our front-liners as well Annual Report 2015 as nurturing talents for the succession pool and key banking positions. Ultimately, China Bank’s ability to be the bank of choice for clients lies in our ability to provide personalized and consistently high level of banking service. 10 AnnualAnnAnnnAnnual Report Report 20152015 OPERATING HIGHLIGHTS C shareholder value—ourdrivingforceforclose to acentury. catalyst forwealthcreationanddeliversignificant customerand stakeholders. Thisisanchoredonourcontinued passiontobea partnerships, acquirecustomers,andbethebest bankforallits among smallandmediumenterprise(SME)consumeraccounts. institutional, commercial, andmiddlemarketsegmentswithstronger coverage branch networkexpansion,enhancedinfrastructure, withsizeablepresence in Accordingly, theBankisprimedtogrow inallmarketsegmentsthrough continued sustained commitment to deepen existing relationships and sustained commitmenttodeepenexistingrelationshipsand be amajorplayerintheindustrywithsharpfocusand hina Bank’s goalin2015andthenextseveralyearsisto We confronted 2015 with optimism, focusing on building a customer-centric organization and putting together the foundations for sustainability. With BALANCE SHEET greater agility and hard work, China Bank punctuated the year with several HIGHLIGHTS milestones, a fitting homage to 95 fruitful years in the industry. Enhanced resources and capabilities and openness to change have allowed us to provide Increased by 10% innovative solutions and offer new products and services. The implementation of new initiatives and completion of major projects all signify also that we are on the road to becoming the best bank for our clients. P5.6 B Net Income 2015 was a landmark year of continuing transformation. A more contemporary and dynamic China Bank can now be seen in the redesigned branches and will be seen in more locations, as we continue with our rapid network expansion. The Increased by 12% challenges of the current business climate have stimulated us to enter new and exciting business lines. Along with this expansion comes the expected growth of its management team, composed of highly skilled and professional executives who can P527B ably deliver in response to our customers’ expanding needs and preferences. Total Assets
The strong financial performance for the year underscores that we are on the right track. A look into our different businesses’ performance in 2015 confirms that our Increased by 7% initiatives and programs for profitable and sustainable growth are making headway.
Aligned with our core strategy to reach more markets and acquire new client P317 B partners, we pursued the aggressive expansion of our branch network in 2015. We Gross Loans added 47 new branches (inclusive of CBS) in strategic locations and ended the year with a total of 517 branches. Our reach went beyond our branches as we deployed nearly 80 new automated teller machines (ATMs) in populated areas, bringing the Increased by 10% total number of ATMs to 740.
China Bank solidified its position as one of the most preferred partners of issuers in P439 B the last three years, led by our investment banking team. In 2015, China Bank acted Total Deposits in a lead or joint lead capacity in a number of landmark deals, including the P15B San Miguel Pure Foods preferred shares and P33.5B San Miguel Corporation on preferred shares, the P20B SM Prime bonds and P4B Sta. Lucia Land maiden bonds, the P33.31B Pagbilao 3 project finance and P42.15B San Buenaventura Power 11 project finance, which was recently named by Project Finance International as Asia- 9.62% 11 Pacific’s PowerDeal of the Year. Return on Equity Annual Report 2015 Annual Report 2015 OPERATING HIGHLIGHTS Annual Report 2015 12
Our reach went beyond our branches as we deployed nearly 80 ATMs in populated areas, bringing the total number of ATMs to 740.
Number of 1.6M Customers/ Accounts China Bank: 1.33M China Bank Savings: 0.28M
Total Branch 517 Network China Bank: 352 China Bank Savings: 165
Spurred by these significant growth and contribution, we invested and obtained ATM Network BSP and SEC approvals to operate our new investment house, China Bank Capital 740 China Bank: 590 Corporation, which will provide capital raising, merger and acquisitions, financial China Bank Savings: 150 restructuring, debt and securities underwriting, and advisory services to all types of public and private companies. Total Employees 7,540 China Bank: 5,713 China Bank Savings: 1,827 GROWING THE ORGANIZATION While the previous year found us reorganizing a structure to build a more responsive and competitive China Bank, we continued to boost our human resources by hiring 295 new employees in 2015, who along with existing manpower pool, are being constantly trained to deliver personalized and customized service in order to deepen relationships with valued clients. These talented and dynamic China Bankers are led by a very competent management team whose expertise and professionalism are strengthened through continuous customer banking education. RETAIL BANKING
Our commitment to cultivate stronger relationship and enduring partnerships with our markets has prompted us to engage customer segments that will ultimately benefit not just us, not just the industry but most especially, the entire country.
To ensure efficient client servicing and product delivery and to accelerate business expansion, China Bank maximized value from its rapid branch growth through targeted customer acquisition and retention, developed new market base, and further developed the branch banking organization that will effectively implement our ongoing expansion. To proactively cross sell and nurture customer and employee relationships, we strengthened the organization by developing “super BMs (branch managers)” and expanded our region and area head complement to improve span of control, fortify customer partnerships, and improve market coverage. 13 We found it necessary to invest in new infrastructure so that we can deliver an enhanced
level of service, convenience, and engagement to our customers at the main touchpoint: Annual Report 2015 the branch. As part of our ongoing branch expansion development strategy and corporate image enhancement, we embarked on a “redesign and refresh” project to develop a new look for our branches. We chose a very cosmopolitan location for the pilot branch to display the new design. China Bank Bonifacio Global City-One World Place, at 32nd Avenue, which opened in August 2015, features an open layout, dynamic seating and contemporary counters and fixtures. The new design conveys a more conducive and inviting environment that signals a more progressive future for China Bank. This was RETAIL BANKING
Annual Report 2015 followed by the opening of Cebu SM Seaside Branch in us to give our business customers a new experience in online November, which also sports the new improved look. banking. Upon completion, our internet banking website will
14 have a streamlined new look with an Integrated Login Page We also inaugurated the new China Bank Corporate Center, and a Dashboard that fulfills all account information needs a PEZA-accredited BPO tower at the Cebu Business Park, on like a ‘one-stop shop’. July 16, 2015. The China Bank Corporate Center completes the two-phase development of our operations in the south. REMITTANCES In 2015, China Bank continued to develop its remittance CUTTING-EDGE IT PLATFORM services including domestic money transfers. Depositors can To support the expanding operations and strengthen our send money to their beneficiaries who do not have any bank banking platform, China Bank migrated to a new core accounts. More beneficiaries are now taking advantage of banking system called Finacle Core Banking Solution (FCBS). our vast network of cash pick-up locations, which include FCBS is the core banking transformation project dubbed as its China Bank branches as well as branches of China Bank China Bank PLUS (Program to Level Up our Service) and will Savings, MLhuillier, Cebuana Lhuillier, Palawan Pawnshop, be the cornerstone of China Bank’s competitive advantage LBC, SM Global Pinoy Centers and One Network Bank. to meet our commitment to build a customer-centric organization and drive business growth. Meanwhile, international remittances sent through China Bank experienced robust growth, 96% growth in number of The FCBS roll out in China Bank Savings on August 10, 2015 transactions and 60% growth in absolute amounts. is considered one of the most successful core banking system conversion in the country, with marginal service disruption 2014 20151 Growth during and after the transition. Remittance Volume in $ Mn 551 883 60%
Its agile architecture and scalable technology give greater No. of Transactions (‘000) 1,112 2,175 96% computer power and enhanced capability and flexibility to improve service quality and optimize customer experience. It allows us to manage risk and regulatory compliance more Our remittance teams have also been going around the effectively and easily adapt to changing customer demands country to market the Overseas Kababayan Savings Account, and market trends. a deposit account specially designed for Overseas Filipinos and their beneficiaries. It is the perfect instrument for In the Bank’s efforts to have full control and more effective managing an OFW’s hard-earned money and a take-off for handling of transactions, we are currently enhancing the growing his savings, later on venturing into investments, security features and improving the convenience and and eventually buying or building his own home or and even functionalities of our corporate internet banking platform starting his own business. through “Project Transcend”. Ultimately, this project will allow LENDING 2015 proved to be a significant year for the Lending Segment. We fortified our presence in the corporate market with big ticket accounts from expanding “new economy” business segments—power and utility, infrastructure (PPP projects), mining, business process outsourcing, logistics/warehousing, payment streams for corporate clients, and telecommunications.
China Bank tapped payment streams of corporate clients through our cash management businesses, participated in more forex-denominated deals by building up our foreign currency deposit unit deposit base, and pursued relationship- and risk-based pricing. We also defended our market share for commercial, middle market, and small-and-medium scale-enterprises (SMEs) by addressing the funding requirements of top-tier commercial clients, and through close collaboration between Investment Banking and Consumer Banking for business development and expanded fee-based businesses. 2015 also saw the launching of our credit cards, building up of our teachers’ loans, and the bundling of consumer and remittance services. 15 CONSUMER BANKING We are pleased to report that our Consumer Banking Group achieved a remarkable 24% growth in Annual Report 2015 housing loans, more than double that of industry’s 10%. A huge chunk of this increase was obtained from a 32% increase in new loans from our Developer Referred Channel. In addition, our housing loan market has gone beyond major developers to now include pocket developers.
Even as our auto loans market catered mainly to existing Bank clients, it saw a significant 13% growth in 2015. During the year, financing for trucks, buses and heavy equipment was initiated in our branches. At the same time, the Branch Customer Survey was administered as branches were given the necessary LENDING
Annual Report 2015 marketing and support to ensure the consistent delivery of 2015 also saw the launching of one-of-a-kind marketing superior customer service. promos for the China Bank Credit Cards. In March, the
16 Prime, Platinum, and World MasterCard variants were made The strengthening of the Bank’s organizational structure also available to our depositors. More depositors subscribed to extended its scope to the Consumer Banking Group with the our credit cards when we launched the “Dare to Break Free” spin-off of a department into a division and the creation of promo, which offered absolutely zero annual fees for life. new units and new unit heads as well as the establishment of both marketing and operations function within each consumer China Bank MasterCard’s “2 Million Mabuhay Miles and a banking center. All these changes are aimed at a more Priceless New York Holiday Package” raffle promo launched streamlined organization that is more focused and with greater in September was also a major treat for the year. control of areas of responsibilities and accountabilities. We also developed new card features to benefit both CREDIT CARDS buyer and seller. These were in the form of our Merchant China Bank MasterCard was formally launched during our Installment Program and Internal Installment programs 95th anniversary celebration. We produced a special 95th namely Balance Transfer, Balance Conversion, and Transaction anniversary card design that came with another free-for-life Conversion. We look forward when we add more versatile promotion as part of the credit card launch and the bank’s features and benefits such as cash advance, automatic debit anniversary celebration. facility, and rewards redemption.
A special anniversary credit card designed with MasterCard was unveiled during the Bank’s milestone celebration. An approved cardholder must have at least CMSD also tied up with BancNet and a reliable solutions twelve (12) transactions per year or must provider for point of sale (POS) transactions to develop a have at least one approved supplementary card activated and used within the first facility where ATM account holders will be able to send or three (3) months from card delivery, and withdraw at the counters of POS Merchants. maintained for at least year to join the 2 Million Mabuhay Miles raffle promo.
Our marketing promos and new card features drove average monthly spending per month for each active card to more CASH MANAGEMENT than double the industry average. Despite our infant status ACHIEVEMENTS in the credit card industry, our first year gross billings of P1.47 billion surpassed those of credit card providers which have Fund Level / Portfolio Management been around for several years. target achieved by 102%
CASH MANAGEMENT Deals Management target over-achieved by 154% Our Cash Management Service Division (CMSD) is one with the company in its goal of becoming the bank of choice Average Income to Cost ratio of the by corporate customers. In 2015, CMSD initiated a project 17 products is at 7:1 versus the target of 4:1. that will replace its cash management platform. It engaged the expertise of SecureMetric and Solutions Exchange Inc., Annual Report 2015 which will allow CMSD to have full control and more effective delivery of cash management transactions for disbursement products such as CheckWrite and Payroll, among others. Annual Report 2015 18
FINANCIAL AND CAPITAL MARKETS
The year 2015 was pivotal for the Bank, as various initiatives aimed to rationalize balance sheet and asset/liability management, strengthen our presence in the origination space of capital markets, enhance our ability to serve customers with more robust technologies and efficient processes, and provide a wider range of product choices for the increasingly sophisticated and demanding customer.
INVESTMENT BANKING Our Investment Banking Group has been providing our clients with a wide range of investment banking services: financial advisory, arranging and underwriting loan syndications, project finance, and debt and equity capital market transactions. Led by First Vice President Virgilio O. Chua, the Group solidified China Bank’s position as one of the preferred partners of issuers in the last three years since its inception.
One of the major steps we undertook to become the best bank for our clients and ensure sustainability as we near ASEAN integration was to spin-off our investment banking group into a stand-alone investment house. On May 14, 2015, the BSP approved our application to set up China Bank Capital Corporation, China Bank’s 12345 Acted in a Joint Acted in a Joint Acted in a Joint Acted as sole Issue Maiden Retail Bonds Lead Capacity for Lead Capacity for Lead/Co-Lead Manager for a Issuance of the following the following Retail Capacity for the Corporate Note Sta. Lucia Land, Inc. Preferred Shares Bonds Issuances: following Project Issuance: solely arranged by Issuances: • SM Prime Holdings, Inc. Finance transactions: • Petrolift Inc. China Bank • San Miguel Corporation (Php20.0 Bn) • San Buenaventura (Php3.0 Bn) • Sta. Lucia Land, Inc. (Php33.5 Bn) • 8990 Holdings, Inc. Power Ltd. Co. • Moldex Realty Inc. (Php4.0 Bn) • San Miguel Pure Foods (Php9.0 Bn) (Php42.15 Bn) (Php800.0 Mn) Company, Inc. • Ayala Land, Inc. • Therma Visayas, Inc. (Php15.0 Bn) (Php7.0 Bn) (Php31.9 Bn) • Panay Energy Development Corporation (Php11.0 Bn) • Del Pilar Steel, Inc. (Php4.4 Bn)
investment house subsidiary. It allows us to further strengthen the origination side on top of our healthy pursuits in the distribution side. Executive Vice President Romeo D. Uyan Jr., was appointed President of China Bank Capital.
Our investment house provides our customers with a wide range of services including debt and equity capital raising and underwriting, project finance, mergers and acquisitions and financial advisory services to all types of public and private companies and played significant roles as sole issue manager, joint lead arranger/lead manager/lead underwriter in a number of landmark deals.
Among the noteworthy landmark deals made in 2015 where
China Bank acted in a lead or joint lead capacity include the 19 P15B San Miguel Pure Foods preferred shares and P33.5B
San Miguel Corporation preferred shares, the P20B SM Prime Annual Report 2015 bonds and the P4B Sta. Lucia Land maiden retail bonds.
The P33.38 billion Pagbilao Power Plant Project Financing Deal won for us the Best Power Deal in the Philippines. The citation FINANCIAL AND CAPITAL MARKETS Annual Report 2015 20
Pagbilao Energy Corporation San Buenaventura Power Ltd. Co. San Miguel Corporation Therma Visayas, Inc. PHP 33.3BN PHP 42.15BN PHP 33.5BN PHP 31.98BN Project Finance Facility Project Loan Facility Perpetual Preferred Shares Project Finance Loan Facility
Asset Asian Awards PFI Awards 2015 Asset Asian Awards IHAP Awards 2016 Best Power Deal 2015 Power Deal of the Year Best Local Currency Bond 2015 Best Fixed Income Deal Asia-Pacific
was given by Hong Kong-based financial publication On top of several groundbreaking deals arranged by China “The Asset Magazine” at the 2015 Triple A Infrastructure Bank and duly recognized by prestigious award-giving Awards. China Bank acted as Co-Arranger and Lender for institutions, we are one of the top bookrunners for the this groundbreaking arrangement. Peso Preferred Shares Issuance in the Philippine Capital Market including the actual underwriting of San Miguel Thomson Reuters Project Finance International (PFI) Pure Foods Corporation and San Miguel Corporation. recognized the P42.15B San Buenaventura Project Loan Facility as the Power Deal of the Year in Asia Pacific According to Bloomberg, we posted a market share of during its 2015 PFI Awards held in London. China Bank 13.31%. Meanwhile, we garnered a 16.06% market share acted as the Mandated Lead Arranger and Lender for the and was among the Top 5 underwriters for Corporate transaction. Bonds for retail bond issues to several companies which included Ayala Land, Inc., 8990 Holdings, Inc., Sta. Lucia The P31.9B Therma Visayas, Inc. Project Finance Loan Land Inc. and SM Prime Holdings Inc. Facility was awarded by the Investment House Association of the Philippines (IHAP) as the Best Fixed Income China Bank was awarded by the PDS Group as the Top Deal during the IHAP Awards 2016. China Bank acted Corporate Issue Manager (Bank Category) for 2015, as Joint Lead Arranger and Lender for this deal. The besting 3 foreign banks in the category. Asset Magazine also awarded the P33.5B San Miguel Corporation Perpetual Preferred Shares the Best Local Currency Bond for 2015. China Bank acted as Joint Lead Underwriter and Bookrunner for the issuance. 21 Annual Report 2015 FINANCIAL AND CAPITAL MARKETS
Annual Report 2015 TRUST Our Trust group emerged as the fifth leading domestic bank in
22 terms of Assets Under Management (AUM) ending the year at TOPPED THEIR RESPECTIVE FUND P83 Billion, a 16% growth from 2014. CATEGORIES IN TERMS 3 OF YoY PERFORMANCE In 2015, the Trust Group continued to deliver optimal China Bank Equity Fund – Rank 1 of 27 performance for its clients helping them achieve their UITF China Bank Dollar Fund investment goals. China Bank Unit Investment Trust Funds Ranked No. 1 – Rank 1 of 9 (UITF) had consistently been among the top performers in their China Bank Intermediate FI Fund – Rank of 1 0f 8 respective categories, particularly the China Bank Equity Fund which outperformed the PSEi despite the market volatility. The China Bank Intermediate Fixed Income Fund also ranked number one as of end 2015 with Year-On-Year (YoY) return of 4.91% and 1.55% respectively. Another key highlight was the increased participation in new issuances of fixed income P82 Bn 9 investments, directed loans and equities through its Investment Consolidated UITF Management Accounts which grew by 19%. AUM Variants
TREASURY CONSOLIDATED AUM LAUNCHED NEW UITFs China Bank’s Treasury group continued to work towards Php78 Bn China Bank High Dividend – China Bank Equity Fund ensuring the Bank’s stability and sustained growth through Php4.0 Bn China Bank Institutional proactive capital, liquidity, and risk management of investments. – China Bank Savings Money Market Fund
The Group worked towards sustaining its active participation in both fixed income and foreign exchange markets, which generated respectable trading and fee-based revenues. In collaboration with the Investment Banking group, it participated heavily in fixed income distribution to serve the needs of the retail and institutional markets for investment-grade bonds issued by some of the country’s top corporations. The Bureau of Treasury has duly recognized the group’s feat in attaining higher volume and trades in government securities; it was awarded the 8th top performing Government Securities Eligible Dealer (GSED) for 2015.
A major effort to rationalize the matching of asset/liability maturities in the foreign currency books led to the US$158 million 3-year term loan facility agreement with regional and international bank, marking the return of China Bank to the international capital markets for the first time since 1997.
In November 2015, it sought and was granted conditional approval by the BSP for additional Type 2 derivatives authority. The new status now allows China Bank to offer a wide array of derivative products to a more experienced clientele in the face of growing competition.
The Group signed a MOA with Calypso Technology, Inc., a San Francisco-based global applications provider of integrated trading and risk applications, implement a new system capable of supporting growing treasury operations. It offers enhanced trading capabilities, a high level of automation and greater flexibility and speed to adapt to regulatory changes and new business trends. The streamlined system will upgrade front-to-back office operations and reduce dependence on custom development and riskier manual operation. BANCASSURANCE PRIVATE BANKING China Bank entered into a strategic partnership with Manulife In 2015, our team of seasoned and dedicated Relationship Philippines in 2007 to form Manulife China Bank Life Assurance Managers continued to give our affluent customers a more Corpration or MCBLife, giving our clients direct access to rewarding private banking experience. By being “on call” at all innovative financial solutions and products that can help them times and by utilizing our open architecture banking platform, achieve protection and financial growth. In 2014, China Bank our Private Banking Group (PBG) was able to deliver highly raised its equity stake in MCBLife to 40%. personalized service and the best-in-class solutions from other financial institutions together with China Bank’s products to In 2015, MCBLife launched a new product called Health Choice, optimize each customer’s portfolio. one that provides guarateed health funds in the event that the client is diagnosed with a critical illness or get hospitalized. China Bank rolled out the SOPRA Wealth Management system, a client management platform that improves client experience In the same year, the distribution agreement to offer MCBLife by enhancing the processes so that these are more responsive Group Insurance products via China Bank Credit Cards has been to growing clients’ needs. Our private bankers also leveraged on signed. investment banking as well as external counterparties to provide better and viable product solutions. ManuLife is one of the leading insurance companies in the 23 country with P935 billion in assets under management and To be able to reach out to more wealth management clients, we
administration and 20 million customers as of 2015. Known Annual Report 2015 expanded our geographical footprint by opening a new Private as John Hancock in the United States and Manulife in other Banking Center in Bacolod and expanding the coverage of our countries, it provides financial advice, insurance and wealth Alabang Cluster to include Batangas. and asset management solution for individuals, groups and institutions. Annual Report 2015 24
SAVINGS BANK
China Bank Savings (CBS) has come a long way since its humble beginnings in 2007, when it opened its doors to the broad consumer and Small and Medium Enterprise (SME) market. Then a single office in Makati with a little over 50 employees, China Bank Savings is now a big player in its category. It is now the country’s fourth largest thrift bank.
Total Assets Total Loans Total Deposits
16% 13% 13% increase increase increase P76B P52B P66B
Branch Loan Total Capital Bookings 189% increase P10.7B P7B In barely 10 years, CBS has MERGER WITH PLANTERSBANK grown to a network of more Rank among The recent merger of CBS with Planters Development Bank than 162 branches nationwide (Plantersbank) received its final approval from the BSP before local thrift with nearly 2,000 banking the year ended, paving the way for expansion plans in the banks professionals. Living up to its following year. Now bigger, better and stronger, CBS has brand promise of “Madaling strengthened our franchise and increased its domestic footprint Kausap”, CBS continues in the consumer and SME market. This has activated the No. 4 to level up products and realization of CBS’s goal of becoming the “Preferred Bank for services in the consumer and Consumers and SMEs”. SME market in the form of value-enhancing and customer-driven solutions, by growing its With the merger, CBS is now the fourth largest thrift bank presence in more accessible locations, including supermarkets, in terms of assets, loans and deposits. The new CBS is now and through secure and convenient electronic banking bigger with 165 branches in total and 1,857 employees. It also channels. accounts for 14.5% of China Bank’s group-wide resources.
While other thrift banks’ portfolios are skewed towards MCBL PARTNERSHIP Consumer Loans, the CBS loan portfolio is a healthy mix of In living up to our commitment in 2014 of offering SME and Consumer accounts, giving us a unique position in bancassurance to our clients, CBS acquired in 2015 its the market, providing protection in abrupt changes in business bancassurance license and embarked on a strategic partnership conditions and acting as a cushion from market shocks. with Manulife China Bank Life Assurance Corporation (MCBLife). This alliance now allows CBS to provide customers We are confident that we will remain superior in this market, in the consumer and SME market with a one-stop shop for as we have also initiated innovative solutions that will broaden short- to long-term needs for protection, health retirement and financial access for Filipinos and allow CBS to leverage on investments. Moreover, a stronger CBS has been given the BSP mobile technology, and thus compete with the larger industry go-signal to cross-sell MCBLife products. players. We recently signed a MOA with telecommunications giant PLDT for the country’s first online marketplace platform After the launch of Health Choice in 2015, CBS will soon offer for consumer loans. This project called LENDR will allow MCBLife Group Insurance products through China Bank credit consumers to apply for consumer financing and keep track cards. Our thrift bank will also undertake a policy review so of application status and loan payments anywhere, anytime that it can enhance relationships with existing customers and via SMS, mobile app or online with any device or telecoms sharpen its competencies through attendance in international provider. conferences for bank referrers.
In keeping with China Bank’s commitment to our shareholders’ vision and its confidence in its business model, a capital 25 infusion of two billion pesos brought our equity base to P7 billion. This provides the solid capital base for CBS to accelerate Annual Report 2015 business growth and contribute significantly to overall group profitability in the next five years. 26 AnnualAnnAnnnAnnual Report Report 20152015 HUMAN RESOURCES W moving towards onecommongoal. and womenpossessingdiverse talents andperspectives.Together, theyformonesolid team 7,540-strong workforce group-wide. Theyare composedofdedicatedand hardworking men expansion, theChinaBankgroup hired 1,295employees,closing2015withatotal of To effectively supporttheBank’s rapidbusiness growth, capitalventures, andbranch potential andcontributetomutualsuccesses. working environmentforouremployeessothat they canreachtheirfull effectively supportourgrowing operations,westrivetocreateapositive Aside fromsecuring,nurturing,andretainingthe besttalentsthatcan to advocatethebestpracticesinhumanresources management. commitment towealthcreationforourcustomers. Hence,wecontinue workforce sharesourvaluesandiscapableoffulfilling acommon shareholder value:ourpeople.AtChinaBank,weensurethat building acustomer-centric organizationandinincreasing steadfastly upholds,nurtures,andprioritizesakeydriverin hat notablysetsChinaBankapartfordecadesishowit RECRUITMENT It is our policy to recruit qualified individuals who possess an immense EMPLOYEE potential for growth and advancement, and are capable of handling greater BREAKDOWN responsibilities. We hire based on the candidate’s level of fitness and suitability BY GENDER to pre-determined qualification requirements. Current employees are given the opportunity to apply for vacant positions, but the role is ultimately filled by the most qualified candidate regardless of origin. Employment and appointment of officer level employees are subject to strict compliance with policies, rules and regulations set by the BSP. 67.47% 32.53%
COMPENSATION AND BENEFITS FEMALE MALE Our high regard for our human resources is reflected in a sound compensation policy. Our employees are fairly and competitively compensated according to the nature of the job and their qualifications, experience and performance. BY AGE
35 Our salary range rates are at par with industry standards. We reward and below commendable performance generously. An employee’s level in the organization 68% 36 to 50 is determined by the Job Grade (for rank and file employees) or Corporate Rank 6% (for officers) identified with his position, which is the basis of compensation 51 and above and benefits relative to the banking industry. The position title of an employee 26% defines the general description of his function (e.g. Customer Relations Assistant, Branch Head) while the Job Grade and Corporate Rank determine the hierarchy in terms of pay and benefits (e.g. Manager, Senior Manager, Assistant Vice President). BY GROUP 5,499 CHINA BANKING CORP. HRD regularly reviews its salary administration programs and recommends to the Board salary range adjustments to reflect current competitive practices. 1,857 CHINA BANK SAVINGS, INC.
Opportunities for pay increases are related to performance during the year. 15 CHINA BANK CAPITAL CORP. Promotions, merit increases, profit sharing, and performance bonuses are dependent on the individual employees’ performance rating and contributions to 62 CBC INSURANCE BROKERS, INC. the Bank. 122 CBC PROPERTY & COMP. CTR., INC.
On top of salary, our remuneration package includes fringe benefits *China Bank Capital personnel were moved in February 2016. comprising medical, dental, and hospitalization programs; car plan (for 27 officers); financial assistance programs (e.g. housing, car, appliance, and 27 personal loans); employee retirement plan; leave privileges (vacation leave, Annual Report 2015
sick leave, maternity/paternity leave, study leave, and other leaves mandated Annual Report 2015 by law); group life and accident insurance coverage; rice subsidy; meal and travel allowances; and bank uniforms. HUMAN RESOURCES Annual Report 2015 28
These comprehensive and competitive performance-based TRAINING compensation packages reflect our responsible, long-term We are committed to the continuous development and approach to working relationships, and our commitment to education of our employees at all levels. Our training the best labor practices. Last year, the 2015-2017 Collective programs aim to equip our officers and staff with the skills and Bargaining Agreement (CBA) for China Bank was ratified by competencies to achieve our strategic objectives—preparing union members in November, and is China Bank’s 24th CBA them for higher responsibilities and enabling them to cope with in its 95-year history. Similarly, the first CBA of China Bank changes in the business environment, banking regulations, and Savings concluded its negotiations in April 2015. It provides new technology, methods, and procedures. We have designed for wage increases, higher insurance coverage, improvements these programs to be effective and relevant in order to promote in medical allowance, and a contract signing bonus for all excellence in the skills and knowledge needed to obtain and rank and file employees nationwide. maintain maximum effectiveness in the performance of duties and responsibilities.
EMPLOYEE BREAKDOWN BY EMPLOYEE BREAKDOWN BY RANK GEOGRAPHIC ASSIGNMENT Rank and File 5,037 Junior Officers 2,246 NCR 4,836 Senior Officers 257 LUZON 1,494 VISAYAS 766 MINDANAO 444 Opportunities for professional training and development are made available through in-house and company-sponsored PROGRAMS PARTICIPANTS external training programs and courses that have a direct CONDUCTED relevance to employees’ current duties and functions, or will Officer Training 152 2,361 prepare them for a specific new function. We also have a Tuition Refund Program for Graduate Studies wherein our employees Staff Training 225 5,828 are given the opportunity to earn their Masters in Business Administration, Finance, Banking, Economics, Statistics, New programs/ 177 6,186 courses Computer Science, Business Management, and other courses or subjects related to banking and investments with the External 181 333 financial support of the Bank. As a China Bank scholar, Executive 51 69 an employee must maintain passing grades, at the same time, a performance rating of “Good” at work. TOTAL 786 14,777*
REWARDS AND RECOGNITION *Total attendance is more than number of employees as employees Our Rewards and Recognition program is in place not only to participate in several courses during the year. acknowledge high-performing employees but also to foster a positive and productive working environment where our Total training hours: 274,509.02 29 people are always aiming for excellence. Deserving employees Tuition Refund Program for Graduate Studies are given promotions and are aptly recognized. For instance, Number of Scholars in 2015: 8 Annual Report 2015 at the Retail Banking Business National Convention, top performing branches and branch managers are honored for their exemplary performance in different categories. HUMAN RESOURCES
Annual Report 2015 Employee loyalty and dedication also do not go unnoticed. They are entitled to various types of leaves as mandated by law Service awards are given at every China Bank anniversary and enjoy breaks during the declared public holidays of the
30 celebration to employees who have rendered service of Philippines. 10, 15, 20, 25, 30 and 35 years. Outside of the workplace, we provide our employees with WORK–LIFE BALANCE activities that strengthen camaraderie and promote community At China Bank, we believe in the holistic well-being of our participation and personal growth. In 2015, many employees employees, and that integral to having a pleasantly productive participated in company-sponsored sports activities like bowling workforce is to recognize their need for rest and recreation. To and basketball, other forms of recreation, as well as workshops support them in this pursuit, and to ensure that they are always and programs targeted towards employees’ health and motivated and healthy, we implement a good work-life balance wellness. program for our employees. EMPLOYEE COMMUNICATIONS Our office hours are from 8.30 am to 5.30 pm, with a one- The Board and Management maintain a good relationship hour lunch break. Employees report to work five days a week. with employees so that they remain fully involved in their work and committed to our customers and our goals. We offer them a safe and nurturing work environment where everyone is treated fairly and respectfully, and their opinions, concerns, and suggestions are heard and acted upon. Several policies, resources, and mechanisms help us resolve employee grievances REWARDS & RECOGNITION and appeals, handle employee feedback, deal with disciplinary PROGRAM AWARDS
• Model Employee Award • Quick Win Award • Breakthrough Idea Award • Top Sales and Marketing Award • Product of the Year • Deal of the Year • Project of the Year • Special Citation Award • Critical Project Completion Award • Special Meritorious Circumstances Award
RBB NATIONAL CONVENTION AWARDS
• Branch of the Year • Top CASA (Checking & Savings Account) Contributors • Top Sales Associates • Top Performers / Referrors (for Bancassurance, Consumer Banking Group, Cash Management, Insurance, Private Banking Group, Treasury Group, and Trust Group cases, and promote a better understanding of China Bank’s Department for the disaster contingency plan and the Crisis operational policies and procedures, Code of Ethics, as well as Management Team. the relevant laws and BSP rules and regulations. Our Makati headquarters has a well-stocked clinic and a The Bank disseminates information on company developments, registered nurse and a doctor that employees can consult with employee movements as well as events, promos and messages on health concerns. There are also nurses in offices in Philcom from company officials through its official newsletter called Building, VGP Center, Binondo, and Cebu Business Park. The NewsTeller. The publication is released every two months and medical team can also provide advice and supervision on is distributed to all branches. China Bank likewise produces occupational health. First aid kits are available in all branches. the CBS NewsTeller that zeroes in on CBS-related events and We post regular health and safety bulletins on accident developments. prevention and minimizing cases of work-related ill health. These are also regularly emailed to all our employees and posted SharePoint Café is another channel by which the Bank connects in the Bank’s intranet system. with its employees. It is an informal and cozy venue for the exchange of thoughts, ideas and insights about job concerns, COMPANY CULTURE issues and other aspects of employment that help HRD discover Trust is the foundation of China Bank’s culture. From the very what motivates employees to become committed workers. beginning, China Bankers have treated one another with openness, loyalty, and trust. Despite the size to which the EMPLOYEE SAFETY AND HEALTH company has grown through the years, the small-company, China Bank applies its Safety and Health Policy to ensure our close-knit-family feel still remains. employees are protected against the dangers of injury, sickness or death, and that the workplace always remains safe, healthy Because of this culture of trust, our employees conduct and conducive to productivity. This policy is supported by the themselves and perform their duties consistently with our Corporate Safety and Health Committee (CSHC) and The Unit core values in mind: Integrity, High performance standards, Safety and Health Committee (USHC). Commitment to quality, Customer service focus, Concern for people, Efficiency, and Resourcefulness / initiative. They are The CSHC is our central planning and policy-making group guided by clearly defined roles and expectations and are assisted in all matters pertaining to safety and health, which includes by the requisite tools and training we provide them in order to updating, as needed, China Bank’s emergency procedures and succeed in their careers and contribute to the Bank’s success. evacuation plans in case of fire or other significant incident. Meanwhile, the USHC has the primary task of directing Widely embaced by employees are the e-mails released by HRD our accident prevention efforts, including annual fire and five days a week called “Values in Practice,” messages that are earthquake drills, and posting the escape routes, in accordance anchored on the Bank’s corporate values. with the prescribed Bank safety and health programs and pertinent government regulations. Each USHC has its own Red We believe that employees who feel trusted and respected 31 Cross-certified first aider who is duly trained on Adult CPR and will strive harder to maintain that trust and are less likely to do Office First Aid to ensure prompt and proper response in case of something that will result in a loss of trust. Thus, our succession Annual Report 2015 any emergency in the workplace. plan ensures that there is a sense of purpose and sustainability to employees. HRD conducts periodic reviews of the talent To ensure Bank-wide implementation and observance of pipeline and implements individual career development plans to Occupational Safety and Health Standards, each branch or ensure that intellectual capital is not lost, but rather transferred department has its own USHC. In case of disasters, the CSHC from one employee to another. and the USHC will coordinate with our Operational Risk Annual Report 2015 Annual Report 2015 32 32
CORPORATE SOCIAL RESPONSIBILITY
eeply rooted in the way China Bank conducts its operations is a culture that regards its communities and the environment with as much Dimportance as it does its business. This culture is embodied in our innate sense of obligation to give back and in sustainability efforts aimed at creating value not only for our shareholders, but more importantly, for the nation and for the environment.
In 2015, we were able to integrate corporate social responsibility by motivating our employees to extend personal goals beyond the workplace and share a part of themselves with the needy through community-nurturing programs. We likewise partnered with our customers, various community groups and charitable organizations to deliver aid to disaster victims. We joined a global initiative called ARISE or Alliance for Risk Sensitive Investment spearheaded by the United Nations Office for Risk Reduction (UNISDR) which aims to create risk-resilient societies by boosting the private and public sectors and other stakeholders to deliver the targets of Sendai Framework. This is a 15-year global roadmap that seeks to curb disaster mortality and economic losses substantially. EMPOWERING THE YOUTH GROWING AND THROUGH EDUCATION GOING GREEN 32 Replaced Reduced China Bank Scholars flourescent lights in printed reports by 30% branches and signages and print-as-needed with LED bulbs, and A/C reports by 67% 12 - Gilbert U. Dee Scholarship Fund system with newer, more (High School) energy-efficient units
3 - Dee C. Chuan Scholarship Fund (College) Implemented Optimized
16 - CFC-ANCOP Child sponsorship E-announcements for electronic facility to employee updates reduce paper trail program for certain bank transactions, such 1 - Ateneo de Manila as online viewing of statement of accounts
Because we believe in how education can open opportunities wide have continued to volunteer, assist and build goodwill that will help people improve their lives, we partnered with in their own communities by helping in various fundraising the Department of Education (DepEd) in Region 3 to give projects, medical missions, and sports and cultural events. assistance to public school teachers and non-academic staff. China Bank Savings launched the Easi DepEd Loan and the Our ongoing “Going Green” campaign aims to encourage Affordabundle DepEd Loan which both offer easy-to-avail and our employees and customers to adopt and promote low interest loan to this market. environment consciousness and sustainable working and living habits. Thus, we practice measures that promote We continue to support the programs of several charities, resource and energy efficiency, and minimization of environ- foundations and associations that represent sectors and mental hazards through various conservation strategies. communities close to our hearts. We endeavor to promote Despite our growing workforce and operations, we contin- education through our investment in the Child Sponsorship ually pursue initiatives in all branches, aimed at minimizing Program of CFC-ANCOP (Answering the Cry of the Poor, power, water, and paper consumption, as well as to reduce a ministry of Couples for Christ). Through this program, we waste. are able to help provide for primary and secondary education of selected children of indigent families. We also continually China Bank has CSR programs and activities that embody our give our share to sponsor students under the Ateneo de commitment to give back to society who want to benefit as Manila University scholarship program, as well as for the well from the Bank’s continued success. We are enhancing 33 33 education of deserving children of our own employees a comprehensive corporate social responsibility strategy that through the Dee C. Chuan and the Gilbert U. Dee Scholarship will outline relevant social and environmental programs and Annual Report 2015 Annual Report 2015 Funds. practices tied up with our business strategy and the bottom- line. On the whole, China Bank will soon have a structured Our partnerships with these organizations demonstrate approach where value generated by our operations should to our employees how we want to cultivate a culture of benefit our shareholders as well as the communities that we meaningful giving. As such, our branch employees nation- serve, our business and social partners and our employees. Annual Report 2015 34
CONSUMER PROTECTION
eyond the friendly smile and the customary professionalism in handling customer transactions, it has always been China Bank’s mission to render fair, Bhonest and equitable service to our customers. We ensure that our customers’ interests are protected throughout their relationship with us. China Bank was already compliant with most of the provisions of the BSP Circular 857 on Consumer Protection even before its issuance in December 2015. Nevertheless, we continued to assess and beef up key components for financial education and awareness, fair treatment for all concerned stakeholders, customer handling, and risk management.
SECURITY AND FRAUD PREVENTION We have control systems in place to protect our customers from security threats and to prevent them from falling prey to financial theft. These systems are designed to ensure the banking transactions are secure, reliable, whether conducted through the branches or e-banking channels.
Our ATMs are regularly checked for PIN/card data skimming devices. We constantly remind our customers to take extra precautions on how to protect their money, PIN, ATM and credit cards through email, posters and social media. We also regularly provide tips on protecting personal information and accounts against fraud and misuse. Our branch personnel are likewise trained to give them advice on these matters as well as on procedures for reporting fraud cases and captured/missing/stolen cards. Our Customer Contact Center, ATM Center, and other frontliners supported by capable IT teams stand ready to respond and give resolution to customers who become customer concerns are documented, studied, and promptly victims to phishing and other similar scams. resolved.
PROTECTION OF PRIVACY OF In 2015, bulk of Customer Contact Center assistance was on INFORMATION issues relative to the alternative channels and credit cards such Our clients are assured of the security of account information as ATM withdrawals, bills payments, interbank fund transfer and other related details through enhanced verification across and point-of-sale (POS) transactions, status of credit card the available channels of service. Our Online and Tellerphone applications, non-receipt of credit card billing statements and facilities make use of a multi-level security verification beyond card declined transactions. the standard static customer information prior to processing of transactions, while our Customer Contact Center conducts With various forms of communication utilized to inform several layers of positive identification before assisting clients customers, suppliers, regulators, and other stakeholders about with their needs. the migration to the new core banking system, issues arising from such migration were more than satisfactorily handled at We also continuously issue warnings on information security the level of the branches, frontliners, and operations staff. The threats to our clients and provide them with practical and useful Customer Contact Center extended its operating hours and tips on how to protect themselves against such threats through added manpower complement to provide speedy response to our website, social media accounts, email announcements, and any customer issues, which proved minimal. ATM screen displays.
DISCLOSURES AND TRANSPARENCY 2015 CLIENT INTERACTIONS REPORT The bank ensures that the information about our products and 4% services are clear, understandable, accurate, and accessible. We 6% give all necessary and relevant information to our customers Inquiries so that they can make informed decisions when transacting Requests with us. The information is communicated to our customers 51% 39% Complaints through the use of different media and channels such as printed materials that are prominently displayed in our branches or Others* * Feedback and other directly sent to customers—TV, print, radio and other forms of concerns advertisements; our website and social media channels such as Twitter and Facebook; and our Customer Contact Center. All consumer information required by the BSP are likewise openly 2015 CLIENT REPORTED CONCERNS displayed at our branches. Our branch personnel are trained to Undispensed ATM Withdrawal handle inquiries about any information in a professional manner 10% Other ATM-related Concerns to explain risks relating to our products and services and to 7% Non-receipt of Credit Card provide advice on financial matters. 38%38% Statement 38% Other Bank Related Concerns 15% Online Bills payment Concerns CUSTOMER CONCERN HANDLING Online Interbank Fund Transfer 35 5% Concerns As a customer-centric organization, we continuously create Declined Credit Card 6% 35
12% transactions Annual Report 2015 programs and initiatives to ensure our customers are given the 7% Other Credit Card-related excellent service they deserve. Every concern raised is considered Concerns Annual Report 2015 a welcome opportunity that will allow us to improve our * Undispensed ATM Withdrawals – complaints on cash not dispensed from ATM terminals services and provide corrective actions to make banking with us * Non-receipt of credit card statement – no hard or soft copy statement received by credit cardholder * Online Bills Payment Complaints – complaints on non-posting/late posting or any other related more convenient, reliable and satisfying to our customers. Our concerns for the bills payment facility * Declined Credit Card Transactions – complaints on credit cards not being able to transact from Customer Contact Center may be contacted for concerns and POS terminals, online or thru other means * Online Interbank Fund Transfer - complaints on late/non-crediting, double debit or any other complaints either in person, by mail, email or fax, by telephone, related concerns for the interbank fund transfer facility online or social media. Our well trained personnel ensure that 36 Annual Report 2015 CORPORATE T GOVERNANCE Vice PresidentVice forInvestorandCorporateRelations AlexanderC.Escucha. ethics. Thiswascomplemented bytheBestInvestorRelationsProfessional award given toSenior based oninvestorrelations, corporate social responsibility, fi the publiccompaniesinregion thatrender consistentexcellenceincorporategovernance Asia,itdistinguishes held inHongKongonApril27, 2015.OrganizedbyCorporateGovernance China BankalsowontheBestInvestorRelationsCompanyat the5 corporate socialresponsibility andenvironmental practices. management discipline,independentnon-executivedirectors andinvestorrelations practices,and performance inupholdingtherightsofshareholders, disclosure and transparency, board and award, ChinaBankstakeditsclaimamongcompaniesacross Asia thatdemonstratesuperior this Asia.With CorporateGovernance inthePhilippinesgiven byregional journal Governance Yet wasawarded anothermedalingovernance 2015:OutstandingCompany onCorporate to highstandards ofcorporategovernance. reaffi bythePhilippineStockExchange(PSE),latestonegivenin2015 for CorporateGovernance For fouryearsinarow, ChinaBankhasbeenhailed therecipient oftheprestigious BellAward rming,amongpubliclylistedcompaniesandtradingparticipants inthecountry, its adherence governance practicesthantheaccoladesithasreceivedin2015. here isnogreatertestamenttoChinaBank’s commitmenttoupholdthebest nancialperformanceandbusiness th AsianExcellenceAwards 37 Annual Report 2015 les cations, ve consecutive years, with ne an Independent Director as ne an Independent Director nance, legal, accounting, business accounting, business nance, legal, rst listed companies to shorten the term uence their decisions or interfere with their uence their decisions or interfere ve listed companies. ed that each of the three China Bank IDs continue ed that each of the three INDEPENDENT DIRECTORS element of independence on the a strong maintain We of the independence conduct an annual review and Board defi We of our Directors. China with or relationships someone holding no interests or the Management shareholders, Bank, the controlling that would infl BOARD COMPOSITION qualifi integrity, of individuals with consists The Board and investment management management, marketing, business China Bank’s oversight of Board for the effective activities and affairs. and one Adviser Directors size of eleven Board The present the size and complexity of our is commensurate with and executive Directors two are operations. Of the eleven, the three including non-executive Directors, are the rest is a Director executive Director An Independent Directors. of a department or unit of the Bank who is also the head to our operations, while non- or performs any work related not part of the to those who are refer executive Directors day-to-day management of banking operations. who serves on China Bank has no executive Director the of listed companies outside of two boards than more have complied with the regulatory We China Bank Group. profi Our Directors composition. on Board requirements 61 to 63. on pages are independent judgment. of exercise (ID) Independent Directors has three Board The present and we have fully complied with all the applicable rules on their nomination and election. As stated in our Corporate Governance of an ID should not exceed Manual, the tenure a cumulative term of nine years: fi period, then another four years. China a two-year cooling off Bank is one of the fi they in the China Bank Board, up to 9 years. While they are in more not allowed to hold interlocking directorships are than fi for In the annual assessment of Independent Directors was the year ended December 31, 2015, the Board satisfi any business or other from to be independent and free of with the exercise which could interfere relationship, independent judgment. skills, and experience, providing an ideal mixture of core of core ideal mixture an experience, providing skills, and such as fi competencies of China Bank’s of China Bank’s THE BOARD OF DIRECTORS AND THE THE BOARD OF DIRECTORS STRUCTURE ORGANIZATIONAL
I. is the highest governing of Directors authority at The Board Organizational of China Bank’s China Bank and is at the core and is accountable to our represents The Board Structure. guides our overall philosophy and direction shareholders, operations and future and sets the pace for our current developments. Governance also includes by the Board performance, establishing monitoring Management’s and setting our corporate values. of accountability, standards in as presented The Bank has an Organizational Structure annually and is updated as needed page 38 that is reviewed that may have an impact or in light of new regulations and Senior of the Board and responsibilities on the role Management. Good corporate governanceGood corporate pillar is a on a strong anchored close to a century, success for Good the right way. to doing business commitment in sustainability governancecorporate is key to the Bank’s most important cornerstones and is one of the the future in of our business. ensuring the sustainability a vigilant and high functioning board China Bank is led by team that fully embrace the and management of directors China values, and they chart vision and core mission, Bank’s journeyby the Bank’s to success, guided not only Bank’s the principles and practices of good principles, but also by and integrity, corporate governance—fairness, accountability, transparency. Our leaders set the tone of governance that and ensure of of the rights protection mechanism for disclosure, and of shareholders, the equitable treatment shareholders, Management and of Directors the accountability of the Board while maintaining a collaborative and productive in place, are that drives high performance and quality work environment to deliver strong orientation, consistent with our commitment value. customer and shareholder 38 Annual Report 2015 CORPORATE as prescribed bythe copy oftheirgeneralandspecifi Upon theirelection,themembersofBoard are issued a the directors duringtheAnnualStockholders’Meeting. these candidates’nomination,andtheshareholders elect qualifi The NominationsCommitteereviews andevaluatesthe Corporate Secretary onorbefore theprescribed date. Committee,orthe Committee, theCorporateGovernance the nominationtoanyofmembersNomination Board. Theshareholders nominate candidatesbysubmitting render independentjudgment.We welcomediversity inour leadership, experienceatpolicy-making,andtheirabilityto thus, thedirectors are selectedfor theirintegrity, credibility, The positionofaChinaBankDirector isapositionoftrust; ELECTION OFTHEBOARDANDSUCCESSION Regulations forBanks(MORB),whichtheyacknowledged SECRETARY cationsofthecandidates,fullBoard confi RETAIL BANKING BUSINESS RELATED PARTY TRANSACTIONS BANKING SEGMENT RELATIONSHIP
Bangko Sentral ng Pilipinas ng Sentral Bangko BOARD OF TRUSTEES OF CBCRETIREMENT OR REMUNERATION COMPENSATION LENDING BUSINESS SEGMENT cdutiesandresponsibilities OPERATIONS SEGMENT BUSINESS SECURITY OFFICE NOMINATIONS INFORMATION COMMITTEE ORGANIZATIONAL CHART CREDIT CREDIT CAPITAL MARKETS & INVESTMENT & INVESTMENT Manualof BOARD OFDIRECTORS FINANCIAL FINANCIAL BOARD COMMITTEES SEGMENT rms VICE CHAIRMAN OFFICE OF THE COMMITTEE EXECUTIVE EXECUTIVE PRESIDENT PRESIDENT / CEO CORPORATE SUPPORT regular orspecialmeeting called forthispurpose. the Board. Thestockholders mayalsofi sourcesexternal whensearching foridealcandidates Board mayalsouseprofessional search fi appointment orelectionoftheremaining directors. The Bank’s By-Laws.Vacancies intheBoard maybefi replacement orvacancyintheBoard isaddressed inthe BSP ruleswhichare thensubmittedtotheSEC.Succession, directors tocomplywiththeSecuritiesRegulationCodeand Additional certifi certifi all thequalifi Certifi individually submitaSworn the prescribed period.Moreover, thedirectors also receipt andcertifi understood thesame.Copiesofacknowledgement to havereceived andcertifi MANAGEMENT TECHNOLOGY INVESTMENT COMMITTEE COMMITTEE STEERING SECURITY SECURITY GROUP OFFICE TRUST TRUST TRUST cationsare submittedtoBSPaftertheirelection. MANAGEMENT FINANCIAL FINANCIAL SEGMENT cationsasenumeratedintheMORB.These cationsare executedbyindependent DIVISION cationare submittedtotheBSPwithin AUDIT AUDIT RELATIONS GROUP INVESTOR & CORPORATE edthattheyread andfully MANAGEMENT MANAGEMENT GROUP RISK RISK RISK cationthattheyposses llsuchvacancyina rmsorother COMPLIANCE lledby
COMPLIANCE COMPLIANCE OFFICE GOVERNANCE CORPORATE 39 Annual Report 2015 nancial tness and duciary duty. The Board The Board duciary duty. ve business days in advance of cations on proposals tabled to enable the Board to tabled to enable the Board cations on proposals ed with the performance and support rendered by the ed with the performance and support rendered
suitability of the Corporate Secretary in accordance with in accordance Secretary suitability of the Corporate it is has concluded that Policy on Fit and Proper, China Bank’s satisfi Corporate Secretary. OF INFORMATION BOARD MEETINGS AND SUPPLY meets every 1st By-Laws, the Board As stated in the Bank’s fi China Bank’s of the month to review Wednesday strategies, policies, and business plans, performance, approve which proposals as well as to consider business and other meetings may Special Board approval. the Board’s require or proposals also be called to deliberate and assess corporate approval. Board business issues that also require attend, and for, expected to prepare are The Directors in judiciously, participate in these meetings, and to act of China Bank and our good faith, and in the best interest shareholders. with the information and resources is provided The Board discharge its fi needed to effectively performance, is informed on an ongoing basis of the Bank’s major business issues, new developments, and the impact developments in the economic and regulatory of recent materials Board provided are The Directors environment. to the agenda fi related to allow them to meetings, by the Corporate Secretary of the items during the meeting. for discussion prepare invited to attend Board Members of Senior Management are with detailed explanations the Board meetings to provide and clarifi and make an informed decision. The meetings of the Board in minutes, and all resolutions recorded its committees are documented. are questions asked and the answers given in the minutes, given in the minutes, asked and the answers questions and within her authority things. It is her duty among other and regulatory of relevant advise the Board to inform and expert to provide and developments, trends compliance counsel on governance Board issues, to facilitate the annual to advance the Board’s evaluation process, and Director by ensuring timely and accurate commitment to transparency to facilitate orientation of new and corporate disclosures, as of Directors, development and professional Directors required. assessment of the fi after its annual The Board, ciently liated cer who plays a vital role in the cer who plays a vital role cial record keeper responsible for the administrative keeper responsible cial record companies, external consultants and advisors, and the is a senior, The Corporate Secretary Corporate Secretary. strategic-level corporate offi corporate governance. Bank’s Corazon I. Morando. is Atty. Our Corporate Secretary operationally to the Chairman and is also She reports as Alongside her traditional role accountable to the Board. the offi Morando is and committee meetings, Atty. side of board also a corporate governance for gatekeeper responsible liaison practices, as well as a board overseeing sound board who works and deals fairly and objectively with the board, management, stockholders and other stakeholders. With operations and the a deep understanding of China Bank’s Morando principles of good corporate governance, Atty. the continuous to ensure works closely with the Directors as well as to uphold Board of the Board, improvement and annual stockholders’ meeting best practices, including well within the meeting notices to shareholders releasing explanations to promote period, providing prescribed better understanding of the agenda, and summarizing the and effectively, they have full and unrestricted access to they have full and unrestricted and effectively, and affi Management and employees of the Bank CORPORATE SECRETARY CORPORATE duties effi to discharge their enable our Directors To SEPARATION OF THE ROLE OF THE CHAIRMAN ROLE OF THE CHAIRMAN OF THE SEPARATION OFFICER (CEO) CHIEF EXECUTIVE AND THE and and President Board of Chairman of the The position are people, and their roles two different held by CEO are clearly distinct and separate. is not being a non-executive Director, Sy, Chairman Hans T. operations of China Bank, but is involved in the day-to-day running of the and effective for the leadership responsible of trust with a relationship including maintaining Board, decision making process a sound members, promoting Board discussion of dissenting views. He by encouraging critical separate sessions arranges regular meetings and chairs Board Management’s to review Directors with the non-executive performance. responsible is ultimately to the Board, The CEO, who reports day-to-day operations, as well for managing China Bank’s corporate and as the development and execution of the of Directors. Board business strategies as established by the 40 Annual Report 2015 governance issues. governance insights onRiskManagement, Technology and current This trainingprovided theboard withsignifi Training conductedbytheInstituteofCorporateDirectors. among othersattendedanExclusiveCorporateGovernance Head ofRiskManagementandtheChiefAuditExecutive, the ManagementCommittee,ChiefComplianceOffi On 03June2015,theBoard togetherwiththemembersof required Seminar. CorporateGovernance with theBSPrequirements alldirectors haveattendedthe updates, changesonaccountingstandards. Incompliance on relevant newlaws, riskmanagementandtechnology education process foralltheDirectors includebriefi training materialsandoperationsmanuals.Acontinuing Directors whichincludesbranch visitsandcomprehensive In placeisafullorientationprogram fornewly-elected BOARD TRAINING Annual Stockholders’Meeting. including theorganizationalmeetingregularly heldafterthe In 2015,theChinaBankBoard hadsixteen(16)meetings, informed decision. with necessaryinformationtoenabletheBoard tomakean be invitedtoattendBoard meetingstoprovide theBoard Board decisions.MembersoftheSeniorManagementshall every meeting,recognizing thesignifi an independentdirector shouldalwaysbeinattendance rules andregulations. Exceptfor, mostcompellingreasons, different votingrequirement isrequired byexistinglaws, quorum of2/3memberstheboard present, unlessa as amatterofpolicy, decisionsshouldbemadeonlyupon In caseswhere adecisionistobearrivedatbytheBoard, BOARD MEETINGSDECISION oeT i 1 94 15 T.Jose Sio oet .Ka 6100 16 F.Roberto Kuan let .Yo 6100 16 S. YaoAlberto alyT y1 88 14 Harley T. Sy ebr .S 594 15 T.Herbert Sy yTog1 100 16 Dy Tiong oqi .De1 100 16 Joaquin T. Dee ee .De1 81 13 Peter S. Dee iad .Cu 1 100 16 Ricardo ChuaR. asT y1 88 94 14 15 U.Gilbert Dee Hans T. Sy
IETRATNAC % DIRECTOR ATTENDANCE cantrole ofanIDinthe cantanduseful ngs cer, Committee. including twojointmeetingswiththeRiskManagement The ExecutiveCommitteeconvened40timesin2015, to thefullestextentpermittedunderPhilippinelaw. of ChinaBankbetweenmeetingstheBoard ofDirectors, of theBoard in themanagementofbusinessandaffairs When theBoard isnotinsession,itshallexercise thepowers Executive Committee(ExCom) members. into accounttheoptimalmixofskillsandexperience by theBoard at theannualorganizationalmeeting,taking The membersofthedifferent committeesare appointed are postedinourcorporatewebsite,www.chinabank.ph. which are reviewed annuallyandamendedwhen necessary, delegated authorityandfunctions.Thecommitteecharters, committee hasacharterandoperateswithinitsspecifi committees andthree Management-levelcommittees.Each responsibilities, theBoard hasestablishednineBoard-level fi To enhancetheeffectiveness oftheBoard indischargingits BOARD COMMITTEES duciarydutiesandtocomplementitintheexecutionofits iad .Cu 998 39 Ricardo Chua R. oqi .De4 100 40 Joaquin T. Dee ee .De3 80 32 Peter S. Dee ibr .De3 90 36 U.Gilbert Dee 2002 2009 2014 2015 asT y3 90 36 Hans T. Sy IETRATNAC % ATTENDANCE DIRECTOR Special Seminar on Corporate Governance forBank Special SeminaronCorporateGovernance Anti-Money LaunderingSeminar WorkshopExclusive CorporateGovernance TrainingExclusive CorporateGovernance Chairmen &CEOs Anti-Money LaunderingSeminar c 41 Annual Report 2015 nancial 012, 2013, 2014 and 2015. DIRECTOR ATTENDANCE % AlbertoYaoS. 12 100 Joaquin T. Dee T. Joaquin 12 100 Dy Tiong Dy 11 92 nancial reporting and policies, by selecting the auditors and policies, nancial reporting including compliance with the Institute of Internal with the including compliance Auditors‘ of Practice International the Professional for Standards Internal Committee is also Code of Ethics. The Auditing and the Bank‘s external to oversee empowered audit functions, fi and discussing the scope their fees, reviewing and approving and discussing audit, and reviewing and plan of annual auditors the annual audited fi with management and oversight over It also provides statements of the Bank. market, liquidity, in managing credit, management‘s activities other risks of the Bank, including operational, legal and on management of information from receipts regular activities. The Audit and risk management risk exposures including 11 joint Committee convened 12 times in 2015, Governancemeetings with the Compliance and Corporate Committees by non-executive The Audit Committee is composed entirely is an Alberto S. Yao and the Chairman, Mr. directors Independent Director. in 2015, including The Audit Committee convened 12 times Corporate 11 joint meetings with the Compliance and Governance Committees. is responsible cation and evaluation cation and evaluation primarily oversees all matters pertaining Peter S. Dee, Hans T. Sy, Gilbert U. Dee, and Ricardo R. Chua each holding the trophies for China Bank’s four Bell Awards for 2 four Bell Awards Bank’s for China R. Chua each holding the trophies Gilbert U. Dee, and Ricardo Sy, Peter S. Dee, Hans T. DIRECTOR ATTENDANCE % Joaquin T. Dee T. Joaquin 14 100 Hans T. Sy T. Hans 12 86 Gilbert U. Dee GilbertU. 12 86 AlbertoYaoS. 12 86 Audit Committee to audit, including the evaluation of the adequacy and to audit, including the evaluation of the system. It likewise internal control of the Bank’s effectiveness oversight on the activities of Management and provides the internal and external and auditors. It appoints, reviews of The Chief concurs in the appointment or replacement in ensuring that the Audit Executive, and is responsible Chief Audit Executive and internal free audit function are is an annual by outside parties, and there interference from of the internal the effectiveness audit function of review From left to right: From Risk Management Committee (RMC) Committee Risk Management risk of all the Bank’s and development for the oversight the the evaluation of functions, including management its to ensure plan and strategies risk management continued relevance, implementation and The RMC is also and effectiveness. comprehensiveness, for the identifi responsible systems of limits. and oversee the of exposures Committee convened 14 times in The Risk Management joint meetings with the Executive 2015, including two Committee. 42 Annual Report 2015 Committee. Committees, andtenjointmeetings withtheNominations in 2015:11jointmeetingswiththeAuditandCompliance Committeeconvened21times The CorporateGovernance well asoftheSeniorManagement. the periodicevaluationofBoard anditsCommittees, as principles andguidelines,oversees corporate governance ensuring theBoard’s effectiveness anddueobservanceof Committee Corporate Governance Committee. jointly withtheCorporateGovernance The NominationsCommitteeconvenedtentimesin2015, www.chinabank.ph. The CharterisavailableintheBank’s website, Moreover, itiscomposedentirely of independentdirectors. of thedirectors aligned withtheBank’s strategicdirections. it istaskedtoundertaketheprocess ofidentifyingthequality Based ontheBank’s revised NominationsCommitteeCharter, the Promotions Review Committee. Board approval, includingpromotions favorablyendorsed by nominated totheBoard andotherappointmentsthatrequire for reviewing andevaluating thequalifi Nominations Committee Committees. Corporate Governance times in2015,jointlywiththeAuditand The ComplianceCommitteeconvened11 regulations andpolicies. accordance withtheprescribed laws, rules, mitigating businessriskstoensure thatisin the Board inmonitoringcomplianceand Compliance Committee oet .Ka 80 8 F.Roberto Kuan let .Yo1 100 10 S. Yao Alberto Alberto S. Yao S. Alberto oqi .De3100 3 Joaquin T. Dee from 01 -May 06 2015 January Joaquin Joaquin T. Dee asT y3100 3 Hans T. Sy 3 joint meetings with the 3with Corporate joint meetings Governance Committee Hans T. Sy yTog 0100 10 Hans T. Sy T. and Joaquin up to are Dee members May 6, 2015; Tiong Dy IETRATNAC % ATTENDANCE DIRECTOR IETRATNAC % ATTENDANCE DIRECTOR 1100 11 1100 11 1100 11 istaskedtoassist is responsible is responsible for cationsofallpersons Corporate Governance Committee:JoaquinT.Corporate Governance Dee,Robert F. Kuan,HansT. Sy, AlbertoS.Yao It convened11timesin2015. existing regulations. Group orothersenioroffi specifi for trustandagencyaccounts,unlessthisfunctionis business foracceptanceaswellapproval ofallinvestments the managementofTrust Group. Itactsuponalltrust investment supervisionoveralltheportfoliosorfundsunder Trust andInvestmentsCommittee meetings in2015. The CompensationorRemunerationCommitteehadthree chairman, RobertoF. Kuan,are IndependentDirectors. environment. Three outofthefi consistent withtheBank’s culture, strategyandcontrol and otherkeypersonnel,ensuringthatcompensationis oversight overtheremuneration ofseniormanagement Compensation orRemunerationCommittee let .Yo3 S. Yao Alberto yTog3 Dy Tiong let .Yo2 100 21 S. Yao Alberto ibr .De3 U.Gilbert Dee asT y1 90 19 Hans T. Sy asT y3 Hans T. Sy oqi .De2 100 21 Joaquin T. Dee Roberto F.Roberto Kuan oet .Ka 886 18 F.Roberto Kuan callydelegatedbytheBoard totheheadofTrust IETRATNAC % ATTENDANCE DIRECTOR IETRATNAC % ATTENDANCE DIRECTOR cersoftheBank,consistentwith vemembers,includingthe 267 is responsible forthe provides 100 100 100 100 43 Annual Report 2015 oversees and formulates the formulates ll the Bank’s ll the Bank’s reviews and approves all approves and reviews c delegated authority and functions.
** Non-voting member Management Committee (ManCom) Management by the and budget as directed business plans Bank’s on the implementation Board to the and reports Board to fulfi strategies designed of corporate business goals. At the operating corporate mission and matters such as, but not level, it covers top management assessment, objectives setting, limited to, environmental asset/liability management, review, performance and budget development, product resource organizational and human operating policies. The ManCom is development, and major listed on pages are R. Chua. The members by Ricardo chaired 58-59. (CreCom) Committee Credit It also authority. approval within its credit applications credit approval applications exceeding its credit credit all reviews and if found acceptable, endorses such to the authority, The CreCom of Directors. Executive Committee or the Board R. Chua Ricardo is composed of Gilbert U. Dee (Chairman), Ramon (Vice-Chairman), William C. Whang, Nancy D. Yang, S. CornelioR. Zamora, Rosemarie C. Gan*, Ananias III**, Corpus**. and Melissa F. * Effective April 1, 2015 Steering Committee (TSC) Technology of the Bank. Except for strategic manages the IT resources all matters pertaining to initiatives and IT expenditures, management and performance measurement IT resource
duciary duties and to complement it in the execution of its responsibilities, the Board has established nine the Board duciary duties and to complement it in the execution of its responsibilities, is responsible is responsible 982 11 100 101010 91 91 91 ned in the existing policies ned in the existing policies DIRECTOR ATTENDANCE % DIRECTOR ATTENDANCE % AlbertoYaoS. 7 100 Rene J. Sarmiento J. Rene Jose T. Sio JoseT. Sy HerbertT. Sy T. Harley R.Chua Ricardo Dy Tiong Dy 7 100 Roberto F. Kuan RobertoF. 7 100 Board of Trustees of CBC Employees’ Retirement Fund of CBC Employees’ Retirement Trustees of Board is responsible for the investment and disbursement of the is responsible Plan in accordance assets of CBC Employees’ Retirement plan of the and the best interests with SEC regulations Gilbert U. Dee is composed of of Trustees holders. The Board R. Chua. (chairman), Peter S. Dee, and Ricardo To enhance the effectiveness of the Board in discharging its fi of the Board enhance the effectiveness To Management-level committees. Each committee has a charter and operates within its specifi committees and three Board-level for ensuring that the RPT Policy is in place, determine the for ensuring that the all and in reviewing for RPT transactions, material threshold party transactions as defi related basis. The length at an arm’s of the Bank to be conducted of Independent Directors: entirely Committee is composed Kuan. Dy Tiong, (chairman), F. and Roberto Alberto S. Yao Committee convened seven The Related Party Transaction times in 2015. Related Party Transactions Committee Related Party Transactions 44 Annual Report 2015 Below istheratingsystemused: andCEO. ofthePresident performance aspecifi is also maybe) (as There to theBoard. thecase recommendations fi oftheChieffor thevalidation Compliance Offi Offi Compliance accomplished form to theCorporate (CG) Governance andtheyareto theduly return self-assessments various to accomplish isrequired the oftheBoard member each aprocess, As andpractices. governance principles corporate leading ofcompliance thelevel with on focuses system rating formal self The Questionnaire. of aSelf-Assessment byway Directors, andtheindividual Committees, Board the asawhole, oftheBoard theeffectiveness to assess process evaluation hasanannualperformance Board The BOARD ANDCEOEVALUATION Rosemarie C.Gan. C.Whang,RamonR.Zamora,and C. Escucha,William TSC iscomposedofRicardo R.Chua(chairman),Alexander and effectiveness ofcontrol measures implemented.The project benefi its Charter, subjecttoregular reporting totheBoard ofIT are fullydelegatedtotheCommitteeasprovided for in time. Theresults are summarizedandreported alsotothe which maybeexaminedbythe Commissionfrom timeto Compliance Offi No. 4,Seriesof2012,theresults are validatedbytheCG in 2012.Inaccordance withSECMemorandumCircular assessment fortheAuditCommitteereleased bytheSEC We alsoadoptedtheSEC-prescribed performance nal results are summarized and reported with specifi with andreported aresummarized nalresults AIGDESCRIPTION RATING 2-3 5 4 1 0 been made been made major deviation(s) or incompleteness minor deviation(s) or incompleteness adopted in the Manual but compliance has not yet the Manual and full compliance with the same has Manual and compliance has been made but with the Manual and compliance has been made but with the company’s Manual of Corporate Governance Excellent Good Fair Improvement Needs Poor tsandstatus,ITrisks,systemperformance c Self-Assessment Questionnaire on the on Questionnaire cSelf-Assessment cerandformpartoftherecord oftheBank - Leading practice or principle is adopted in the cer, theresults summarizes inturn who - Leading practice or principle is not adopted in - Leading practice or principle is adopted in - Leading practice or principle is adopted in - Leading practice or principle is cer. The c salary, bonuses, benefi maintaining competitivenessinthemarket,comprisesfi rewards toshort-termandlong-termobjectives Framework, designedtostrikeabalancebetweenlinking meritorious performance.TheEmployees’Remuneration the relative importance ofeachjobposition,andtoreward banking industryforthesamejobfunction,torecognize range rateswhichcompare favorablywiththosepaidbythe For employees,theremuneration policyistomaintainsalary any performance-related compensation. Nonexecutive Directors, ontheotherhand,donotreceive employment status,position,andrankintheBank. depending ontheirperformance,bankingexperience, include provisions forbasicsalaryandperformancebonus, are appointedunderstandard employmentterms,which to 4%oftheBank’s ExecutiveDirectors netearnings. attendance ateachBoard/Board Committeemeetingand Bank Directors are entitledtoaperdiem ofP500.00for In accordance withtheBank’s amendedBy-laws,China REMUNERATION of ourstakeholders. and strategieswithouroperating environment andtheneeds corporate strategytoensure thealignmentofourdirection Board reviewed ChinaBank’s andthe MissionandVision intheachievement ofthisgoal.In2015,the of governance stakeholders. We committotheprinciplesandbestpractices be—a catalystofwealthcreation forourcustomersand of thisannualreport, refl andMission,asstatedontheinsidefrontOur Vision page VISION ANDMISSION within theorganization. effort necessarytocreate more andcontinuingawareness business managementandwilltherefore undertakegreater necessary componentofwhatconstitutessoundstrategic isa shareholders believe thatgoodcorporategovernance The Board ofDirectors, Management,employees,and CORPORATE GOVERNANCEPOLICY on FitandProper. of eachtheDirectors inaccordance withtheBank’s Policy includingthefi of CorporateGovernance, complied withtheprovisions andrequirements oftheCode are nosignifi Board. Basedontheresults of the2015evaluation,there cantdeviationsandingeneraltheBankhas tsandlong-termincentives. ectwhatChinaBankwantsto tnessandsuitability xed 45 Annual Report 2015 ned rms that the Bank’s internal rms that the Bank’s nancial forecasts and targets for nancial forecasts MANAGEMENT management structure with clear authorities, responsibilities, with clear authorities, responsibilities, management structure enterprise risk management an and operating procedures; the Risk Management Committee function supported by compliance a robust Group; and the Risk Management anti-insider trading function with anti-money laundering and planning and budgeting process, policies; a comprehensive Division, that spearheaded by the Corporate Planning delivers detailed annual fi INTERNAL AUDIT internal control Internal audit is a vital part of China Bank’s The Internalstructure. the independent Audit function covers risk management, and objective evaluation of the Bank’s and governance This is handled by the control, processes. Audit Division, headed by the Chief Audit Executive (CAE), Marilyn G. Yuchenkang. Vice President to maintain lines in order The CAE has dual reporting organizational independence—functionally to the Audit and CEO. Committee and administratively to the president of the CAE should be duly The appointment and removal by the Audit Committee. The Audit Division approved performs its mandated tasks based on the Board-approved all functions, Its authority cuts across Internal Audit Charter. to the and personnel in relation records, units, processes, II. RISK CONTROL AND INTERNAL and review for the establishment is responsible The Board system of internal the while control, of China Bank’s with internal for rests day-to-day responsibility control involved to a certain our employees are Management. All of The components in our internal process. degree control of our internal system includes a well-defi control and an internal approval; audit function independently Board by the Audit Division. exercised and monitoring by the Audit Based on the continuing review of the internalCommittee of the adequacy and effectiveness management’s system of the Bank, and its evaluation of to the operations activities in managing various risks material of the Bank, the Committee affi and adequate and risk management systems are control functioning effectively. ce, c and general c and general cer (CCO), Atty. Marissa cer (CCO), Atty. ciency and Resourcefulness / Initiative—China Bank’s / Initiative—China Bank’s ciency and Resourcefulness COMPLIANCE WITH THE CORPORATE COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE has imposed a policy of full compliance with the Our Board Code of Corporate Governance. Our Compliance Offi headed by the Chief Compliance Offi for building a compliance culture B. Espino, is responsible in the Bank and ensuring that the system of and awareness implementing and monitoring compliance with the Code Corporate Governance effective. Manual are and the Bank’s For the year 2015, the Bank has fully complied with all the of the Code of Corporate Governance. material requirements CODE OF ETHICS CODE OF ETHICS standards committed to honest and ethical strongly are We by our Core in the conduct of our business as guided Commitment High Performance Standards, Values—Integrity, Customer Service Focus, Concern for People, to Quality, Effi on honest and business has always been anchored laws and ethical conduct and compliance with applicable also the foundation of values are These core regulations. clear guidelines on our Code of Ethics. The Code provides business practices acceptable and unacceptable behavior and in the Bank’s and is available to all employees and posted Website. has imposed a policy of full compliance with Our Board Division ensures the Code of Ethics. Our Human Resources of and upholds that every China Bank employee is aware Code, compliance with the to promote the Code. In order given a copy of the Code of Ethics all new employees are Orientation booklet and undergo the New Employees’ the Code is comprehensively Course (NEOC) wherein discussed. CORPORATE GOVERNANCE MANUAL GOVERNANCE CORPORATE Governance has an extensive Corporate China Bank governance embodies our corporate Manual that policies, governance the specifi principles, structure, and the duties of the of the Board, duties and responsibilities that it is to ensure regularly It is updated individual directors. and the rules and issuances of the BSP, aligned with the latest Philippine Stock Exchange of the SEC and the regulations Intranet system available in China Bank’s (PSE). The Manual is www.chinabank.ph. and our corporate website, 46 Annual Report 2015 respond theirauditoftheBank. tomattersconcerning are present attheBank’s annual stockholders meetingto losses totheBankandourstakeholders.SGVrepresentatives and anyothermattersthatcouldpotentiallyresult inmaterial signifi that SGVhasbeenauditingtheBank,itnotfoundany Financial ReportingStandards (PFRS).Throughout theyears are treated andpresented inaccordance withPhilippine statements factuallyrepresent ouraccountingrecords and SGV playsacrucialrole inensuringthatourfi partner-in-charge forChinaBank. required bylaw. LeeSalaswasassignedin2011asSGV’s Vicky over 20years,withthepartnersrotated everyfi & Young (SGV) hasbeenChinaBank’s auditorfor external its independencefromauditors.SGV&Co./Ernst the internal re-appointment, andremoval auditortoensure ofanexternal The Bank’s AuditCommitteeisresponsible fortheappointment, EXTERNAL AUDIT necessary skillsandcompetenciesinusingthisanalyticstool. service provider toequipthedesignatedauditorswith to auditcoverage.Relatedtrainingwasconductedbythe manpower resources thusminimize impactofstaff turnover test procedures thatare notdependentontheavailable effi to coverthewholepopulationfortesting;andimprove audit assessments; increase auditcoveragebyproviding capability which provides foramore frequent control andrisk by movingfrom traditionalauditingtocontinuousauditing, data analyticssolutionthatwillimprove theauditapproach achieve engagement’s objectives,ithasacquired in2014 process ingatheringandanalyzingauditdataorder to In linewiththeAuditDivision’s thrusttoimprove itsexisting the preparation oftheAnnualAuditPlan. conduct ofitsrole. Arisk-basedauditapproach isusedfor meeting onFebruary17,2016. taken upandapproved bytheAuditCommitteeat itsregular fi related totheperformanceofauditorreview oftheBank’s related auditorthatare servicesbytheexternal reasonably The aboveauditfeesare inclusiveofotherassuranceand nancial statements.Thematterofthe 2015auditfeeswas ciencyandqualitybyallowingconsistentrepeatable
ICLYA UI ESNON-AUDIT FEES AUDIT FEES FISCAL YEAR cantexceptions,suchascasesoffraudordishonesty, 04P 2014 05P 2015 206000 -- P 2,046,000.00 2,800,000.00 nancial 337,425.60 ve years,as regulations. fraud, anti-moneylaundering,andotherrelevant laws and regular bank trainingsoncompliance,corporategovernance, a culture ofcompliance,theComplianceOffi effective incarryingoutthecompliancesystem.To foster the Bank’s ComplianceFramework iskeptupdatedand Offi Our ComplianceOffi lectures. advisories, andotherregulatory mattersandbyconducting disseminating allapplicablenewlaws,regulatory issuances, regulations, bycascadingthe Bank’s CompliancePlanand aware ofandcomply withallapplicablelaws,rules,and compliance culture where allemployeesatlevelsare that seekstoensure thebankwideimplementationof andanti-moneylaundering general compliance,governance of businessrisk.Ithasputinplaceacompliancesystemfor protecting therightsofstakeholders andinthemitigation ComplianceOffi governance, As oneoftheBank’s foundationinensuringgood COMPLIANCE OFFICE scheduled 2016annualstockholdersmeeting. SGV isagainrecommended forappointmentatthe ICRRS. Audit,ICAAPPhase2,RiskModelValidationInternal and through project engagementswhichincludeICAAPfor and strengthening of riskmanagementandauditprocesses CapitalAdequacyAssessmentProcess (ICAAP), Internal measurement andpricingmodels,implementationof Bank‘s systems,independentvalidationoftherisk the conductofanindependentsecurityassessment In thepastyears,Bankalsoengagedtheirservicesfor banklenders. facility agreement issuedtotheinternational the PSE,andcompliancecertifi proceeds from theBank‘sstockrightsoffering issuedto for theAnnualSummaryReportofapplication Annual Stockholders‘Meeting,andagreed uponprocedures for theindependentvalidationofvotesinMay7,2015 &Young& Co./Ernst innon-auditwork2015,particularly, approved/authorized theengagementofservicesSGV Executive/Risk ManagementCommitteelikewisediscussed/ Apart from thematterofauditfees,Board/Audit/ cer(CCO)Atty. MarissaB.Espinowhoensures that ceisheadedbytheChiefCompliance ceplaysavitalfunctionin cateasrequired underthe ceconducts 47 Annual Report 2015 cation cation le the and business lines on all aspects se the technical capacity of cer, First Vice President Ananias cer, III, S. Cornelio is MARKET AND LIQUIDITY RISK The objective risk policies obtain of our market is to the best of risk and return whilebalance meeting our stakeholders’ requirements. Meanwhile, liquidity our risk policies on center maintaining adequate liquidity at all times be to in a position meetto RMG all obligations due. continuedas they fall to including enhancements and implement its roadmap in 2015 projects in support of these objectives. Budget and capital considerations (Pillar II guidelines) are now effectively embedded risk taking activities into via the Value- at-Risk (VaR) limits. The Limits annual VaR review incorporates the impact on Capital Adequacy of VaR Ratio (CAR) establishinga basis for as limits, in addition the to Aside risk tolerance. budgetannual trading and the Bank’s risk is adequately as a risk metric, market from using VaR managed through a risk management framework comprising of limits, triggers, monitoring and reporting procedures. As part of its the Bank is in the process roadmap, of risk systemimplementing a market which will and enhance VaR. of measurement the automate development of various risk strategies and principles, control guidelines policies procedures, and implementation of risk measurement risk indicators, tools, monitoring of key and the impositionmonitoring and of risk limits. The RMC profi risk regularly reviews Bank’s China effectiveness of risk management systems. Moreover, auditorsinternal test and evaluate our risk management determineprogram to effectiveness and communicate the results the Board to and the Audit Committee. The Risk Management headed Group (RMG), by our chief offirisk responsible executing for the risk management function and the guidelines set identifi including the by the RMC, and evaluation on a continuous basis of all considerable risks the business,to and challenging of risks activities.from arising the Bank’s risk RMG Bank’s continued strengthen to China In 2015, management framework effectively to assess, manage, and monitor risks across a broad range of activities. Major initiatives increa to were taken the group in credit risk model development and validation. adoptionFoundation the Bank’s of the Basel for III framework on liquidity risk management has been prepared. systemCore testing on disaster preparedness was also completed. ce nancing nding intelligent cient and upto-date anging risks that China Bank anging risks that China risk mitigation, not outright outright not risk mitigation, ce conducts regular seminars on the ce conducts regular ce also acts as liaison for the Board and and as liaison for the Board ce also acts Corporate ce is the home of the RISK MANAGEMENT recognize that the businessWe of banking necessarily entails risk, and that proper long-term to is the key success.risk avoidance, Our risk management principle centers on determining how much risk we are willing to bear a given for return, deciding if the risks represent viable opportunities, and fi and willfaces be years in the coming facing with a dynamic risk management program that calls the continuing for reassessment of risks and controls the timely and reporting of these risks the Board. to As mandatedunder existing regulations, the Board is responsible the approval and overseeing for the implementation risk management of policies. The Board has delegated this function the Risk Management to Committee (RMC) which includes among others, the develops, implements, and monitors programs to prevent to prevent develops, implements, and monitors programs being used for money laundering. China Bank from The Compliance Offi of the Anti- Base60 Automated AML System, the basics to ensure trends Money Laundering Act (AMLA), and current that China Bank employees have suffi as well as the risks knowledge of AML law and regulations, and the fi and opportunities for money laundering Money Laundering and Terrorist The revised of terrorism. is (MLPP) Operations Manual Program Financing Prevention posted in our intranet system for easy reference approaches managing risks. to Our corporate governance structure with pace keeps the ch ANTI-MONEY LAUNDERING of the committed to complying with the provisions are We Compliance Offi The Anti-Money Laundering (AML) law. The Compliance Offi The Compliance the matters with compliance on regulatory management including advisory services, and provides agencies; regulatory and services. The products China Bank proposed reviewing to the Compliance Committee and CCO functionally reports the Corporate Governance Committee, and administratively and CEO. to the President The Compliance Offi Governance in monitoring Department which is responsible Code of Corporate Governance.compliance with the The on governanceBanks recognition in served as a testament carrying out this function. 48 Annual Report 2015 Bank’s ability to withstand stress events. stress to withstand Bank’s ability vulnerabilities onspecifi usto evaluateChina allows Bank’s framework overall IST The environment. normal under charge capital basis for ICAAP isthe which Approach Models theInternal complements IST as Volatility, Tests. Stress The Uniform, andReverse such in place already tests to stress thesilo in addition submission (ICAAP) Process Assessment Adequacy Capital for theMarch 2016 TestingStress (IST) framework Internal usinganIntegrated continued RMG testing, stress On validations. model to perform of theIAD building was the capacity intheengagement and included validation riskmeasurement of models, these independent for consultant the ofanexternal theservices Bank engaged year, theprior In anannualbasis. on (IAD) the Audit Division bytheBank’s validated and MCO Internal areindependently Since 2014, –VaR, EaR models theinternal riskmeasurement module forgeneratingLCR. system willundergoversionupgradethisyear, whichinclude effective interest ratestrategiesandfundingplans.TheALM generates insightsthatleadtotheformulationoftimelyand 2013. ThisimportantinformationontheBank’s exposures Management (ALM)systemthatwasimplementedin risk exposures are automatedthrough theAssetandLiability The measurement ofbalancesheetinterest rateandliquidity Ratio (LCR)basedonthedraftguidelinesfrom theBSP. Management withregular estimates oftheLiquidityCoverage regulatory reporting. In2015,RMGbeganproviding responsible formanagingtheBank’s liquidityandfi representatives from Treasury andAccountingwhoare Standards andMonitoringin2014.Theteamincludes FrameworkforLiquidityRiskMeasurement,III International formed ateamtospearheadtheBank’s adoptionofBasel used formanagingandmonitoringliquidityrisk,RMG Aside from theMaximumCumulativeOutfl VaR. ofBalance Sheet measurement suchasthe othermetrics continue tothe Bankwill explore oftheBank’s accrual analysis portfolio enhance its further To analysis. theBank’s to EAR supplement to theRMC reporting intheregular included havebeen shifts curve yield andnon-parallel rate volatilities interest using actual estimates (EaR) rate theEarnings-at-Risk risk, interest For c events or crisis and gauge the crisisandgauge or cevents ow(MCO)model nancial 2-year timelinesetbytheregulators. the Board ofDirectors withtheobjectiveofmeeting units responsible havebeenpresented to,andapproved by Non-Bank FinancialInstitutions).Specifi Amendment totheManualofRegulationsforBanksand 855 (GuidelinesonSoundCredit RiskManagementPractices; corresponding roadmap tocomplywiththeBSPCircular No. The Bankalsofocusedondeterminingthegapsand Acquired (ROPA). as theimpairmentmethodologyofRealandOtherProperties immediate attentionwere alsocovered duringtheyearsuch to existingcredit policies andprocedures. Areas requiring the assessmentofloanportfolioqualityandadherence as of2015year-end. Thestandard credit examinationcovers units accountedfor19%oftheBank’s totalloanportfolio Banking, andRetailBankingBusinessgroups. Theselending of eightlendingunitsfrom ConsumerBanking,Institutional the credit examination armofRMG,completedthereview In 2015,Credit ReviewandControl Department(CRCD), estate exposures. regulators andtheBODwith thegranularanalysisofitsreal under BSPCircular No.839,theBankalsoprovided the presenting theresults oftheRealEstateStress Test required expected volatilitybasedonhistoricaldata.Inadditionto on industryexposures toMAT basedonactualusageand shift from auniform ManagementActionTriggers (MAT) exposures andconcentration riskbyrecommending the The Bankcontinuedtostrengthen itsmanagementoflarge sovereign andcorporateexposures. model designedtoimprove itsassessmentofcountryriskfor addition, theBankstarteddevelopingitssovereign riskrating Moody’s Analytics,whichistherecalibration oftheICRRS.In proceeded withthenextphaseofengagement Credit RiskRatingSystem(ICRRS)in2014,theBank the quantitativeandqualitativevalidationofInternal approved bytheBoard ofDirectors (BOD).Aftercompleting scoring modelsinlinewiththeenterprise-wideroadmap enhancement ofnewandexistingcredit riskratingand For 2015,theBankfocusedondevelopmentand environments andbusinessgoals. business levelwithspecifi Our policiesformanagingcredit riskare determinedatthe CREDIT RISK
cprocedures fordifferent risk cactionplansand 49 Annual Report 2015 c to the Trust c to the Trust dential. ts the best interests of our stakeholders. ts the best interests ce, the disaster preparedness was thoroughly was thoroughly preparedness ce, the disaster OPERATIONAL POLICIES OPERATIONAL III. AND ETHICAL GOVERNANCE By-Laws, Corporate Guided by the policies in China Bank’s Governance Manual, Compliance Manual, and Code of and Senior Management lead, direct, Ethics, the Board governance the and business conduct of and control inspire, not just consistent with the China Bank, ensuring that we are but that China Bank is run soundly and prudently, rule of law, in a manner that fi WHISTLEBLOWING employees, wherein have a whistle-blowing policy, We party service providers and third customers, shareholders, unethical questionable activity, encouraged to report are conduct, fraud or any other malpractice by mail, phone or because the or retaliation e-mail, without fear of reprisal identity of the whistleblower is kept confi TRUST RISK 766, BSP came out with Circular On August 17, 2012, Corporate GovernanceGuidelines in Strengthening and Risk Other Fiduciary Business, on Trust, Management Practices Activities. The circular and Investment Management to “develop and implement a formal, entities mandates Trust risk management program and effective comprehensive, management that outlines, among other things, the risk monitor and measure, identify, that effectively processes In line Entity.” the clients and the Trust risks affecting control risk China Bank’s with this, RMG continued to strengthen by enhancing the policies, management practices on Trust for market risk, liquidity risk, credit and procedures processes, specifi risk, operational risk and compliance risks 2014, Legal, Strategic and Reputational Risks were In Group. Risk Management Guidelines. also incorporated in the Trust additional In 2015, RMG developed and implemented and Single metrics such as the Equity Limit Monitoring Funds. Limit Monitoring for Unit Investment Trust Exposure performed and those that shall be delayed for an acceptable be delayed for an acceptable and those that shall performed Information IT Audit and Bank’s Alongside the period of time. Security Offi procedural and both infrastructure assessed, covering and industry regulations set under existing matters. Standards ability to the Bank’s used to benchmark best practices were events. to pre-determined respond ngs were ngs were c thresholds, which which c thresholds, nition of specifi cation and self - assessment process. process. cation and self - assessment cient manner. RMG continued to effectively continued to effectively RMG cient manner. rms which order recovery of operations are are of operations recovery rms which order OPERATIONAL AND IT RISK OPERATIONAL and tools to policies, procedures, have a framework of We managed and IT risks are operational that China Bank’s ensure and effi in a timely such risks, implementing and report control, assess, monitor, on improving with emphasis and improvements new projects preparedness. disaster the Bank’s assessment, monitoring, the continuously strengthen To RMG spearheads the bank - wide and mitigation of risks, operational risk identifi prompt on a quarterly basis that require monitored are with management actions for areas attention and appropriate of severe avert the occurrence to proactively risks increasing incidents. made to support In 2015, additional investments were and network connectivity for technology requirements and the Business both the Disaster Recovery Center (DRC) located in are Recovery Center (BRC) of the Bank which Makati Central Business District. outside the areas different that China Bank is adequately prepared Both facilities ensure The BRC can and business resumption. for disaster recovery an from recover accommodate critical units of the Bank to unexpected business interruption. Equipped with workspaces, computer and communication systems, the facility can support parallel operations 24x7. A risk based and scenario driven Business Continuity in 2015 which was approved Management (BCM) Program of the Bank and includes the resiliency aims to improve Recovery and Crisis Management planning, systematic testing Business Impact The BCM’s and continuous improvement. and update commenced Assessment / Analysis (BIA) review in November 2015 after a series of BCM briefi and for an effective conducted. This analysis aims to prepare business continuity and disaster recovery comprehensive plan. It confi This enables determination of priority risks areas, assessment of priority risks areas, This enables determination and institutionalizing of in place, of mitigating controls operating a controlled to ensure additional measures for China Bank. Also, the Bank maintains a environment all the reported Centralized Loss Database (CLD) where enable the assessment to recorded incidents of losses are up with and come processes of weaknesses in the Bank’s China Moreover, to avoid recurrence. viable improvements Indicators. These Bank collects data for operational Key Risk indicators include the defi 50 Annual Report 2015 permission; andtohaveworkcompetitivewiththeBank. other workoutsideoftheBankwithoutBank’s written and responsibilities as employeesoftheBank;toengagein CONFLICT OFINTEREST to: Reports/disclosures maybesenttoanyoffi thereof. Committeesonthedisclosures andstatus Governance Regular reporting ismadetotheComplianceandCorporate necessary bytheHRDorInvestigationCommittee. recognition andmaybeentitledtoanaward asdeemed as maybedeterminedbytheCCO,shouldgiven within 24hoursfrom receipt thereof. Meritoriousdisclosure, she isrequired torespond tothewhistleblowerofitsstatus for furtherinvestigation.IftheCCOfi the AuditDivisionand/orHumanResources Division(HRD) in formandsubstance,theCCOshallrefer thedisclosure to to anyresponsible offi and validityofthereport. Disclosures mayalsobereported (CCO), whoisresponsible fordeterminingthesuffi Disclosures maybedirected tothe ChiefComplianceOffi “insider information.”Alsocovered are consultants and fi price oftheBank’s stock,to directly orindirectly engagein disclosed, includinganyinformationlikelytoaffect theshare in theaffairs ofChinaBankwhichhavenotyetbeenpublicly considered tohaveknowledgeofmaterialfactsorchanges trading prohibits directors, offi existing lawsagainstinsidertrading.Ourpolicyon We adoptedapolicyonsecuritiestransactionstoreinforce RESTRICTION INDEALINGSONBANKSECURITIES interests thatconfl employees are notallowedtohavedirect orindirect fi of confl of theemployeesshouldbeavoidedatalltimes.Incases Confl nancialtransactionsasaresult of,orprimarilyrelying upon, www.chinabank.ph A disclosure formis also availableat E-mail address: [email protected] Mobile number:0947-9960573 1226 MakatiCity, Philippines P. O.Box2182,MakatiCentralPostOffi China BankingCorporation CHIEF COMPLIANCEOFFICER ictbetweentheinterest oftheBankandinterest ict,theinterest ofthe Bankshouldprevail. Our ictorappeartoconfl cerofBank.Ifdeterminedsuffi cers,andemployeeswhoare ndsthereport baseless, ictwiththeirduties ceroftheBankor ce ciency cient nancial cer Development Program (ISDP). Development Program (ODP)andIntegratedSupervisory reports withtheappropriate regulatory agency. Full disclosures forthese transactionswere madethrough and above)related partytransactionsasofDecember2015. The tableonpage52showstheBank’s signifi transactions withotherparties. same termsasthoseprevailing atthetimeforcomparable in theordinary courseofbusiness,andonsubstantiallythe having beenentered intointhebestinterest oftheBank, thoroughly review andverifyallrelated partytransactionsas arm’s lengthbasis.TheRelatedPartyTransaction Committee transactions are madesubstantiallyonfairtermsoratan rise toaconfl We recognize thatrelated partytransactionsmaygive RELATED PARTY TRANSACTIONS and servicesare reduced toalevelwhichisaslowand from thecontractingorsupplyofmaterials,equipment, personnel, companyassets,and theenvironment arising provide theBankwithbestvalueavailable;thatrisksto the goodsorservicesprocured are fi in themanagementofBank’s resources. We ensure that We maintainhighlegal,ethical,andprofessional standards SUPPLIER/CONTRACTOR SELECTION Compliance Offi wherein thecompliance conceptisintroduced tothem.The (AML), Whistle-blowing,andCorporateGovernance orientation onComplianceSystem,Anti-MoneyLaundering areas. Allnewemployeesof theBankundergoaBasic are required totheirrespective tocascadetheirlearning andcompliance.TheComplianceCoordinators governance principles, concepts,andelementsofgoodcorporate to raisethelevelofawareness andunderstandingofthe Compliance Coordinators inbranchesandheadoffi The ComplianceOffi compliance culture through educationandtraining. We are committedtocontinuallystrengthen ChinaBank’s EDUCATION AND TRAININGS transaction. required tobedisclosedwithinthree businessdaysafterthe The dealingsofthedirectors intheBank’s shares are undisclosed materialinformation. advisers andallotheremployeeswhoare madeaware of ictofinterest. OurBoard ensures thatsuch cealsoconductslectures intheOffi ceregularly conductsbriefi tforthepurposeand cant(P50M ngsto ce cers 51 Annual Report 2015 s nancial nancials, cant assets, as well staff. cers and le our disclosures le our disclosures cers and staff of AML cers and staff nancial landscape, and an enduring nancial information that may affect nancial information that may affect nancial condition and the quality of our corporate nancial condition and the quality of our nancial and non-fi nancial statements in leading newspapers and producing a nancial statements in leading newspapers and producing as fi the investment decision of the investing public, in the form in our internal in newspapers and reports releases of press fi also electronically publications. We Generation Technology Disclosure the Electronic through then posted on the PSE website. Our (Edge) of PSE which are updated to include the corporate website is likewise regularly information about the Bank. latest news and current DISCLOSURE AND TRANSPARENCY and of disclosure committed to a high standard are We to facilitate understanding of the Bank’s transparency true fi governance. All material information about China Bank is with SEC adequately and punctually disclosed, in accordance In addition to compliance with policy. disclosure and PSE’s like publishing our quarterly requirements the reportorial fi for the Annual Stockholders’ annual report comprehensive disclose major and market-sensitive Meeting, we promptly and information like dividend declarations, joint ventures acquisitions, sale and disposition of signifi nancial institutions in the country. nancing. The MLPP is designed in accordance with the Bank’s is designed in accordance with the Bank’s nancing. The MLPP cers and staff who are obligated by law and by the program who staff cers and rm their commitment to comply with the Anti-Money Laundering with the Anti-Money commitment to comply rm their table fi table cant contribution to the country’s fi cant contribution to the country’s icts of recent regulatory issuances to ensureis reviewed regularly to incorporate therein le. The MLPP cation at China Bank. Suppliers nancial viability to undertake rms that it will uphold compliance with AML laws and regulations. The Board and Senior Management regular undergo training on Anti-Money Laundering, among others. The recent AML Anti-Money Laundering, among others. Management regular undergo training on The Board and Senior Bank is supported by an electronic system capable of monitoring risks associatedThe AML Compliance Framework of China domestic universal banks in the Philippines in terms of capital base, assets andChina Bank is now one of the largest private To foster compliance, the MLPP is disseminated to all offi foster compliance, the MLPP is disseminated To The Board and Management team of China Bank affi and Management team The Board In order to ensure bankwide compliance with the AML laws, rules and regulations, the Bank has adopted a Money rules and regulations, the Bank has adopted compliance with the AML laws, In order to ensure bankwide China Bank affi COMMITMENT TO UPHOLD ANTI-MONEY LAUNDERING LAWS & REGULATIONS LAWS LAUNDERING ANTI-MONEY TO UPHOLD COMMITMENT cations and purchase order prices. order cations and purchase requirements. The Bank has also adopted an AML e-Learning platform to expand the reach of AML training nationwide platform to expand the reach of AML has also adopted an AML e-Learning requirements. The Bank percent (100%) of its offi platform has covered almost one hundred For 2015, AML e-Learning expeditiously. Council (AMLC). training was provided by the Anti-Money Laundering measures are constantly subjected to independent and periodic review of ourwith money laundering. These AML and KYC In addition, a compliance testing is required by the BSP as an additionalinternal auditors as part of their audit program. these audits and testing are reported to the Board through the appropriate boardcontrol to ensure compliance. The results of are regularly evaluated and enhanced by China Bank to keep in pace with thelevel committees. These systems and measures developing standards, current trends and requirements. of solid fi With close to a century publicly-listed companies in the country. market value, and is one of the best-governed signifi strong commitment to personal, quality service, of clients trusting the Bank with their wealth and future, China Bank remain legacy of successful partnerships with generations (AML) laws, rules and regulations. The Bank strongly believes that money laundering undermines the integrity of the fi money laundering undermines the integrity regulations. The Bank strongly believes that (AML) laws, rules and risk profi corporate structure and compliance. are being conducted to update all offi Regular AML trainings and seminars to implement the same. system and the reputation of a bank. system and the reputation Board of Directors. The MLPP provides for Program (MLPP) approved by the Financing Prevention Laundering and Terrorist the prevention ethical and professional standards including money laundering and promotes high the requirements to combat for money laundering and terrorism fi of the bank being used and profi to be one of the most respected, trusted, stable as reasonably practicable as possible; and that we deal as reasonably the necessary with suppliers and contractors that have and fi experience, capability, in an correct, and technically economically, the work safely, with the and in accordance sound manner, environmentally regulations. contract, schedule, and applicable laws and committed to fair marketplace practices, selecting are We an open and non- suppliers and contractors through a based on criteria that ensure discriminatory process, price, quality, and competitive selection process: thorough follow standards service, and overall value to China Bank. We and equality of opportunity, impartiality, of objectivity, confl from any favoritism or interference preventing in the selection of suppliers and contractors. We interest which is the process have a supplier/contractor accreditation step to pre-qualifi preliminary evaluated accordingly and contractors invited to bid are also evaluated on the basis They are prior to contract award. delivery to promised of actual performance as compared to agreed dates, quality of work / goods, and adherence specifi 52 Annual Report 2015 BDO Universal Bank SM Development Corporation and Affi China Bank Savings, Inc. (Subsidiary) Spouses Irwin Marland & Consuelo Dee Ponce (Related Interest) SM Development Corp. Henry Sy (Stockholder) Summerhills Home Development Corp. SM Prime Holdings Inc./ Costa Del Hamilo, Inc./ SM Hotels and Conventions Sysmart Corp. (Stockholder) SM Investments Corp. (Stockholder)/ Multi-Realty Dev’t Corp./ Sybase Equity BDO Private Bank, Inc. The Manufacturers Life Insurance Co. (Phils.) Union Motors Corp. Watson’s Personal Care Stores Philippines, Inc. ( SM Prime Holdings, Inc. (SMPH) Super Industrial Corp. SIGNIFICANT RELATED PARTY TRANSACTIONSASOFDECEMBER2015 Rizal Commercial Banking Corp. Philippine Business Bank, Inc. Manulife Chinabank Life Assurance Corp. SM Investments Corporation (SMIC) (Stockholder) and its Subsidiaries: JJACCIS Development Corp. / Suntree Holdings Corp. (SHC) CBC Trust Group Angela T. Dee-Cruz EEI Corporation & Its subsidiaries (EEI Power Corporation St. Luke’s Medical Center (Global City), Inc. BDO Private Bank Planters Development Bank(Subsidiary)
Costa Del Hamilo, Inc. Vancouver Lands, Inc. Intercontinental Development Corporation SM Synergy Properties Holdings Corporation Twenty Two Forty One Properties Inc. SM Development Corporation Corp. Investments Corp. Kultura Filipino (Affi SM Hotels & Convention Corp. & Its subsidiaries BDO Unibank & Its subsidiaries (SM Land, Inc., SM Development Corp., SM Synergy Property Holdings SM Prime, Inc. & Its subsidiaries SM Retail, Inc. & Its subsidiaries (Supervalue, Inc., Sanford Marketing EEI RealtyCorporation) Corp., SM Residences, Inc.) Corp., Super Shopping Market, Inc., SM Mart Inc.) (Affi liates) (A Group in the Bank) (Affi (Affi (Offi (Affi liate) (Affi liate) (Affi (Affi lae eea fln P150 Mn Renewal ofline liate) cro h ak Line renewal cer of the Bank) AEO ONEPRYTP FTASCINAMOUNT/CONTRACT PRICE TYPE OF TRANSACTION NAME OF COUNTERPARTY (Affi lae eea fln P50 Mn Renewal ofline liate) lae r-eteetlns P300.0 Mn Pre-Settlement lines liate) liate) lae Renewal of line liate) liates) (eae neet od/X P1 Bonds/FX (Related Interest) (Related Interest) (Affi (Related Interest) lae aeo naqie rpryt MH P90.0 Mn Sale of an acquired propertyto SMPH liate) (Affi liates (Affi (Affi liates) liates) (Associate) lae eea fln P500.0 Mn Renewal of line liate) (Affi RltdItrs)Ipr/oetcLCLn USD2.0Mn Import/domestic L/C Line (Related Interest) (Affi liates) Affi lae r-eteetrs iisP217.632 Mn Pre-settlement risk limits liate) liate) (Affi liate) Sokodr eea fln P500.0Mn Renewal ofline (Stockholder) (Affi liates) od/X P3 Bonds/FX otatt elPrhs aiiy P9,500,000,000 Contract to Sell Purchase Facility od P114,314,740,000 Bonds Bonds eea n euto fln USD2.0 Mn Renewal and reduction of line eea n nraeo ie P47.0 Mn Renewal and increase of lines Renewal of line eea fln P300.0 Mn Renewal of line nraeo ie P3.0 Bn Increase of line Renewal of BP line Renewal of line eea fln P5.0 Bn Renewal of line eea fln P15.5 Bn Renewal of line od/X Bonds/FX od/X P13,619,459,217 Bonds/FX od/X P8 Bonds/FX od P1,113,800,000 Bonds od P1,288,675,000 Bonds od P677,950,000 Bonds upir atrn ii P1.0 Bn Suppliers Factoring Limit od P211,644,807 Bonds od P250,000,000 Bonds od P250,000,000 Bonds oprt ue’ ii P100.0 Mn Corporate Buyer’s limit od/X P3,806,107,500 Bonds/FX od/X P2,826,123,200 Bonds/FX Bonds od/X P2 Bonds/FX od P350 Mn Bonds od/X P48,679,790,958 Bonds/FX eea fOnbsLn P200 Mn Renewal of OmnibusLine od/X P69,314,439,500 Bonds/FX rauyItraklmt P1.028 Bn Treasury Interbank limits od P114,314,740.00 Bonds = P9 Bn 8,374,584,000 P9,946,855,000 P200 Mn P200.0 Mn P50.0 Mn P100.0 Mn ,672,405,000 ,394,632,500 = P500 Mn P80.0 Mn P50.0 Mn ,315,775,000 Sub-limit: P1.0 Bn P51.0 Mn
53 Annual Report 2015 PERCENTAGE PERCENTAGE 1 0.000% 1,676 0.000% 53,324 0.003% 108,419539,168 0.006% 0.029% 422,007 0.023% 2,885,4083,386,624 0.156% 0.183% SHARES 470,151,531 25.362% NUMBER OF NO. OF OF NO. 1,853,728,497 100.00% SHARES HELD SHARES 10.00 per10.00 share 25 Billion25 divided Billion into 2.5 P NUMBER OF Filipino 318,975,815 17.21% Filipino 274,633,398 14.82% STOCKHOLDERS CITIZENSHIP 1,853,728,497 common shares 1,853,728,497 NATIONALITY BritishCanadianDutchSpanishTaiwaneseTOTAL 3 2 1 1 2 1,978 9 Non-Filipino (PCD)ChineseAmericanAustralian 1 49 20 1 c Corporation c Issued Shares: NON-FILIPINO HOLDINGS OF FILIPINO AND SUMMARY 28, 2015 AS OF FEBRUARY AUTHORIZED AND ISSUED CAPITAL AND ISSUED AUTHORIZED Authorized Capital: shares withpar value a of P NAME OF BENEFICIAL BENEFICIAL OF NAME WITH RECORD OWNER RECORD WITH Sy Family Sy Family and Sr. Sy, Henry OWNER & RELATIONSHIP RELATIONSHIP & OWNER PCD Nominee Corporation Corporation Nominee PCD Sycamore Pacifi Sycamore Various stockholders/clients Various Non-Filipino 470,151,531 25.36% Various stockholders/clients Various Filipino 237,807,892 12.83% Stockholders Stockholders WITH ISSUER WITH ce of the Corporate Secretary: ce of the Corporate OWNER & RELATIONSHIP RELATIONSHIP & OWNER Floor Tower I, The Enterprise Enterprise The I, Tower Floor Floor Tower I, The Enterprise Enterprise The I, Tower Floor Bldg., Locsin L.V. Floor Bldg., Locsin L.V. Floor th th th th NAME, ADDRESS OF RECORD RECORD OF ADDRESS NAME, PCD Nominee Corporation * Corporation Nominee PCD 37 Center, 6766 Ayala Ave. Ave. Ayala 6766 Center, Center, 6766 Ayala Ave. Ave. Ayala 6766 Center, City Makati Avenue, Ayala 6752 City Makati Avenue, Ayala 6752 corner Paseo de Roxas, Makati City Makati Roxas, de Paseo corner corner Paseo de Roxas, Makati City Makati Roxas, de Paseo corner Stockholder Stockholder Stockholder Stockholder Sysmart Corporation Sysmart PCD Nominee Corporation * * Corporation Nominee PCD 10 SM Investments Corporation Investments SM 37 10 ATTY. CORAZON I. MORANDO CORAZON ATTY. Secretary and Corporate Vice President 11/F China Bank Building 8745 Paseo de Roxas corner Villar Street Makati City 1226, Philippines (+632) 885-5131, 885-5132 Nos.: Tel. Fax No.: (+632) 885-5135 Email: [email protected] CLASS TITLE OF OF TITLE Common Common Common Common RECORD AND BENEFICIAL OWNERS HOLDING 5% OR MORE OF VOTING SECURITIES AS OF FEBRUARY 28, 2015 5% OR MORE OF VOTING SECURITIES AS OF FEBRUARY RECORD AND BENEFICIAL OWNERS HOLDING IV. FOR STOCKHOLDERS INFORMATION IV. OF FOUNDATION DATE on July 20, 1920 and opened China Bank was incorporated 16, 1920. The Bank is registered for business on August Exchange Commission under SEC with the Securities and amended By-laws may Bank’s number 443. China registration or website, www.chinabank.ph, our be downloaded from the Offi from requested 54 Annual Report 2015 TRADING INCOMPANY SHARESBYBANKDIRECTORS PriceInformationasofFebruary29,2016(latestpracticabletradingdate):P36.10 • MarketvalueasofDecember29,2015(lasttradingday):P37.20 • MARKET INFORMATION 2015 TRADINGINCOMPANY SHARESBYTHEBANK’SPRINCIPAL OFFICERS Adjusted Prices (for 8% stock dividend): Actual Prices: lzbt .Sy ,7 2,372 2,372 0 0 Elizabeth C. Say hre ...Tn1,1 1 11,027 817 0 10,210 Shirley G.k.t. Tan ei aqe 476011315,959 1,183 0 14,776 Delia Marquez eadT e ,2 0 5,429 403 0 5,026 Gerard T. Dee arc .Ceg314702,1 401,195 29,718 0 371,477 Patrick D. Cheng oeai .Gn8,3 ,5 89,782 6,651 0 83,131 Rosemarie C. Gan eeJ amet 692013618,298 1,356 0 16,942 Rene J. Sarmiento oeT i ,4 8 2,428 6,128 23,297 180,356 180 170,837 352,543 454 1,727 1,206,325 100,609 105,953 35,687,755 12,655 26,115 2,324,601 9,863,624 89,358 0 7,454 2,673,540 172,193 730,640 0 0 0 2,248 0 0 21,570 5,674 0 74,403 0 0 158,182 326,428 0 0 1,116,967 33,014,215 Jose T. 93,155 Sio Roberto F. Kuan 2,152,408 9,132,984 Alberto S.Yao Harley T. Sy Herbert T. Sy Dy Tiong Joaquin T. Dee Peter S.Dee Ricardo R.Chua Gilbert U.Dee Hans T. Sy DIRECTOR ac .Yn ,4,0 5,5 2,095,852 155,250 0 1,940,602 Nancy D. Yang NAME OF OFFICER c e 20 70 37.20 37.00 42.00 Oct – Dec a a 11 93 43.06 39.39 41.11 46.50 Jan – Mar 42.55 44.40 Jan – Mar u et4.04.041.00 40.40 43.80 Jul – Sept c e 20 70 37.20 37.00 42.00 Oct - Dec p u 15 85 41.94 38.58 41.54 45.30 Apr – Jun 41.67 44.86 Apr – Jun u et4.54.041.00 40.40 40.55 Jul - Sept 05HG O CLOSE LOW HIGH CLOSE 2015 LOW HIGH 2015 SHAREHOLDINGS ASOF SHAREHOLDINGS ASOF JANUARY 1,2015 JANUARY 1,2015
SHARES DISPOSED SHARES DISPOSED NUMBER OF NUMBER OF Adjusted Prices (for 8% stock dividend): Actual Prices: c e 11 58 47.00 45.80 51.10 Oct – Dec a a 20 72 58.45 57.25 62.00 Jan – Mar u et5.05.050.80 50.00 56.50 Jul – Sept c e 11 58 47.00 45.80 51.10 Oct - Dec p u 30 40 55.10 54.00 63.00 Apr – Jun a a 62 19 53.06 51.97 56.28 Jan - Mar u et5.14.950.80 47.69 52.31 Jul - Sept p u 71 00 51.02 50.00 57.19 Apr - Jun 04HG O CLOSE LOW HIGH CLOSE 2014 LOW HIGH 2014 SHARES ACQUIRED* SHARES ACQUIRED* NUMBER OF NUMBER OF SHAREHOLDINGS ASOF SHAREHOLDINGS ASOF DECEMBER 31,2015 DECEMBER 31, 2015 55 Annual Report 2015 nancial with a focus on the implication of these plans on the with a focus on the implication market and operational risk exposure. credit, resulting of activity or industry developments and probability or deterioration in the improvement a corresponding risk exposures. bank’s asset portfolio deterioration in the bank’s unforeseen in business risk, or business or an increase quality, its business opportunities that arise over the course of activities. equity. build up programs. relation that have a direct environment or regulatory its capital ability to build up or reduce to the Bank’s levels. consequently sustainability of dividend payouts. ALEXANDER C. ESCUCHA and Head Senior Vice President Investor & Corporate Relations Group 28/F BDO Equitable Tower 8751 Paseo de Roxas Makati City 1226, Philippines No.: (+632) 885-5609 Tel. Email: [email protected] a. levels and risk appetite for business activity Planned b. of the implications of macroeconomic An analysis c. to mitigate against an of a capital buffer Provision d. capital mix, leverage, and target return on Desired e. capital of incremental or dilutive effects Accretive f. or opportunities in the capital markets Developments g. of internally Sustainability and generated capital measures. measures. that considers: planning approach an a risk-based capital Management of and adjustments to the capital structure are are to the capital structure of and adjustments Management principal means: the following through accomplished 1. to shareholders of dividend pay-outs Adjustments 2. dividend pay-outs (cash vs. stock) Adjustments in form of 3. of capital securities. reduction The issuance or conversely outlined follows the process broadly Capital Management below: 1. capital and capital adequacy An assessment of regulatory 2. based on capital structure Determination of the optimal INVESTOR RELATIONS investors, analysts, and the fi Inquiries from community are handled by the Investor & Corporate community are Relations Group: c year to plow
10.00 per share 25.0 Billion divided into 2.5 Billion 2014 2013 2012 2011 2010 directions. directions. and maximize shareholder value. and maximize shareholder capital requirements. capital requirements. back to shareholders a commensurate share of unusually of a commensurate share back to shareholders high earnings for a given year. achieving a higher level of sustainable earnings. Stock Dividend Stock 8% 10% 10% 10% 10% Cash Dividend Cash 10% 12% 12% 12% 12% Authorized Capital - P Issued Shares - 1,853,728,497 common shares - 1,853,728,497 common shares Issued Shares AUTHORIZED AND ISSUED CAPITAL DIVIDEND HISTORY China Banking Corporation manages its capital structure and China Banking Corporation manages its capital structure makes adjustments to it in the light of: 1. in economic conditions. Changes 2. risk characteristics of its activities. The 3. or business requirements assessment of prospective The 2. ratings. credit Maintaining strong 3. its business Maintaining healthy capital ratios to support China Banking Corporation capital management philosophy China Banking Corporation capital management and consequently its Dividend Policy which and process, undertaking, is comprises an integral component of this driven by the following primary objectives: 1. Ensuring compliance with externally imposed regulatory 2. for a specifi Dividends may be increased DIVIDEND POLICY DIVIDEND will declare a matter of policy, Corporation, as China Banking of of at least thirty percent at a payout ratio cash dividends conditions subject to the of the prior year, the Net income in this policy statement. and limitations set forth of its Dividend Policy is an integral component The Bank’s rather than a stand- Policy and Process Capital Management and overriding philosophy is Its fundamental alone process. sustainability. These are annually. reviewed Dividend pay-outs are Management Process. Capital against the Bank’s referenced dividend pay- Management Process, Based on the Capital earnings while calibrated based on the prior year’s outs are earnings taking consideration dividend yields, future streams business opportunities. and future Corporation In declaring dividend pay-outs, China Banking as follows: uses a combination of cash or stock dividends 1. to the Bank’s in response The dividend is increased shares with a par value of P shares 56 Annual Report 2015 CORPORATION INVESTMENT MAP CONGLOMERATE (SMIC) SM PROPERTY BANKING RETAIL SM RetailInc. Holdings, Inc. SM Prime 100% 50% Corporation (CHIB) Corporation (CHIB) Banco deOro China Banking China Banking 44% 1 20% 2 2 1 Pre-merger of related retail businesses owned retail % 80 related of Pre-merger Hypermarket Supermarket Conventions Commercial Residential SM Stores Savemore Leisure & Hotels & Tourism Malls SM SM 2
China BankSavingsInc. Computer Center, Inc. China BankInsurance Manulife ChinaBank LifeAssuranceCorp. Corporation (CBCC) CBC Propertiesand China BankCapital Financial AlliedAssociate Non-Financial AlliedSubsidiary Financial AlliedSubsidiary Brokers, Inc.(CIBI) Forex Corp.* China Bank (CBC PCCI) 98.07% (MCBL) 100% 100% 100% 100% (CBSI) 40% * For dissolution For * 57 Annual Report 2015 c’s Power c’s
(SVP Alexander C. Escucha)
The Asset Magazine Corporate Governance Asia
Corporate Governance Asia s
time that China Bank won the award time that China Bank nd RECOGNITION Philippine Dealing System (PDS) Annual Awards (PDS) Annual Awards Philippine Dealing System th Asian Excellence Awards - Asian Excellence Awards th 5 11 Project Finance International The Asset Asian Award • the 2 • the Philippine Stock Exchange (PSE) - Top 5 listed companies 5 listed (PSE) - Top Philippine Stock Exchange • row to have won for four years in a the only awardee China Bank is • four years in each of the the only bank among the awardees, China Bank is - 2015 Best of Asia Awards 2015 Triple A Infrastructure Awards - Awards A Infrastructure 2015 Triple 3. Arranger - Bank Category Corporate Issue Manager/ Top 5. Asia-Pacifi Finance, Buenaventura Power Project P42.15B San Deal of the Year 1. for Corporate Governance 2015 PSE Bell Award 2. Governance Outstanding Company on Corporate - Philippines AWARDS AND AWARDS Philippines 4. Deal - Best Power Deal Financing Power Plant Project P33.3 B Pagbilao - 7. Relations Company - Philippines (China Bank) Best Investor - Philippines Best Investor Relations Professional Preferred Shares 6. P33.5B Perpetual Bond 2015, San Miguel Corporation Best Local Currency Preferred BOARD OF DIRECTORS Annual Report 2015 58
Photo this page, left to right; Standing, Gilbert U. Dee, Ricardo R. Chua, and Hans T. Sy. Seated, Henry Sy, Sr. Photo this page, left to right; Standing, Joaquin T. Dee, Herbert T. Sy, Peter S. Dee and Jose T. Sio. Seated, Dy Tiong Photo this page, left to right; Standing, Roberto F. Kuan, Harley T. Sy, and Alberto S. Yao. BOARD OF DIRECTORS
HANS T. SY, 60, Filipino, GILBERT U. DEE, 80,
Annual Report 2015 is the Chairman of Filipino, is the Vice the Board since May Chairman of the Board 61 5, 2011. He was first since May 5, 2011. He elected to the China was elected as member Bank Board as Director of the Board on March on May 21, 1986, and 6, 1969, and served as served as Vice Chairman Chairman from 1989 from 1989 to 2011. to 2011. He attended Over the years, Chairman Sy had completed trainings on corporate governance in June 2015 various training programs, the most recent of and January 2014 conducted by ICD, and on which were the Exclusive Annual Corporate anti-money laundering in August 2014 by BSP- Governance Training facilitated by the Institute AMLC. For his past positions, Vice Chairman of Corporate Directors (ICD) in June 2015, and Dee was Director of Philippine Pacific Capital the Anti-Money Laundering Training conducted Corporation, Philex Mining Corporation, and by the Bangko Sentral ng Pilipinas (BSP) Anti- CBC Finance Corporation. At present, he does Money Laundering Council (AMLC) Secretariat not hold directorship position in other PSE- in August 2014. In addition to China Bank, listed company; he is the Chairman of the he is the Director and President of SM Prime Boards of Union Motor Corporation and China Holdings, Inc., and serves as Adviser to the Bank subsidiary CBC Properties and Computer Board of SM Investments Corporation, which Center, Inc. (CBC-PCCI), and Director of Super are listed in the Philippine Stock Exchange Industrial Corporation, all non-listed companies. (PSE), as well as occupies positions in various Mr. Dee holds a Bachelor of Science degree in companies of the SM Group. He graduated Banking from the De La Salle University, and from the De La Salle University with a degree in a Masters in Business Administration (MBA) Mechanical Engineering. degree in Finance from the University of Southern California. HENRY SY, SR., 91, Filipino, is the Honorary RICARDO R. CHUA, Chairman and Advisor 64, Filipino, is a Director to the Board since 1997. of the Bank since May His election as Honorary 8, 2008. He was China Chairman on May 18, Bank’s Chief Operating 2006 was formalized on Officer from 1995, February 7, 2007 after until he was elected clearances from the BSP as President and Chief and the Securities and Exchange Commission Executive Officer (SEC) were obtained. He is also the Chairman of effective September 1, 2014. He is a member listed companies SM Investments Corporation, of the board of the Bankers Association of the BDO Unibank, Inc. (Emeritus), and SM Prime Philippines (BAP) and President of BancNet Holdings, Inc. (Emeritus). Mr. Sy holds an Inc. He has had extensive training in banking Associate in Commercial Science degree from operations and corporate directorship, which the Far Eastern University and was conferred include those relating to Corporate Governance a doctorate degree in Business Management in 2002, 2014 and 2015, and Anti-Money Honoris Causa by the De La Salle University. Laundering Act in 2008, 2009 and 2014. He was the Director/Treasurer of CBC Venture Capital Corp. from 1989 to 2003, and Director of the Philippine Clearing House Corp. from 2005 to 2011. He is currently a member of the Boards of China Bank subsidiaries China Bank Savings, Inc. (CBSI), Chinabank Insurance Brokers, Inc. (CBC-IBI), CBC-PCCI, CBC BOARD OF DIRECTORS
Forex Corporation (CBC Forex), and HERBERT T. Chinabank Capital Corporation (CBCC); JOAQUIN T. SY, 59, Filipino, Director of Manulife China Bank Life DEE, 80, Filipino, was first elected Assurance Corp. (MCBLife), CAVACON has been on the Director on Corporation, and Sun & Earth Bank’s Board January 7, 1993. Corporation. Apart from China Bank, since May 10, He attended he does not hold position in any other 1984. He attends various banking- company listed in the PSE. A Certified continuing related trainings, Public Accountant, Director Chua education including the graduated with a Bachelor of Science programs related to banking, including Orientation Course on Corporate degree in Business Administration, ICD’s Corporate Governance trainings in Governance for Bank Directors in 2002, Major in Accounting, cum laude, from 2002, 2014, and 2015, and BSP-AMLC’s Anti-Money Laundering Act of 2001 the University of the East, and he holds Update on AMLA training in 2014. Seminar in 2009, Exclusive Corporate Masters in Business Management Director Dee was the Vice President for Governance Workshop in January 2014, (MBM) degree from the Asian Institute Sales and Administration of Wellington Update on AMLA training in August of Management (AIM). Flour Mills from 1964 to 1994. He is 2014, and Annual Corporate Governance currently Director/President of JJACCIS Training in June 2015. Director Sy has PETER S. DEE, Development Corporation and Enterprise been a director and/or officer for more 74, Filipino, Realty Corporation, and Director/Treasurer than five (5) years in companies engaged is a member of Suntree Holdings Corporation – all of in food retailing, investment, real estate of the Board which are not listed in the PSE. Director development and mall operations. He since April 14, Dee holds a Bachelor of Science degree in is currently Director of Supervalue, 1977. He was Commerce from the Letran College. Inc., Super Shopping Market, Inc., President and Sondrik, Inc., National University, and Chief Executive DY TIONG, 86, Sanford Marketing Corp., all non-listed Officer of the Bank from 1985 to Filipino, is an companies; and Director of PSE-listed 2014. Director Dee completed a Independent SM Prime Holdings, Inc. Director Sy Special Banking course at the American Director for holds a Bachelor of Science degree Institute of Banking. He has had four (4) years in Management from the De La Salle trainings in various aspects of banking, in accordance University. including the Exclusive Corporate with SEC Governance Workshop in January 2014 Memorandum HARLEY T. SY, and Anti-Money Laundering Training Circular No. 9, 56, Filipino, has in August 2014. He was formerly Series of 2011. He was first elected to been a Director director in companies which include the China Bank Board on May 9, 1985. since May 24, Sinclair (Phils.) Inc. and Can Laquer, Over the years, he had attended seminars 2001. He had Inc. Presently, Director Dee holds on banking, the most recent of which attended various directorships in China Bank subsidiaries were on Corporate Governance in June trainings and CBC-PCCI, CBC-IBI, and CBC Forex, 2015 and January 2014, and the Update workshops to in Hydee Management & Resources on AMLA training in August 2014. enhance his Corporation, Commonwealth Director Dy Tiong was formerly a Director banking skills, including the Orientation Foods, Inc., and GDSK Development of CBC Finance, Inc. from 1980 to 2001 Course on Corporate Governance for Corporation, as well as independent and President of Panelon Development Bank Directors in 2002, Enterprise Risk directorships in the following PSE-listed Corporation from 1990 to 1994. He Management in 2008, Anti-Money corporations: City & Land Developers, is currently Vice Chairman of Panelon Laundering Act (AMLA) of 2001 Seminar Inc. and Cityland Development Philippines, Inc., Honorary Chairman of in 2009, Exclusive Corporate Governance Corporation. He is a graduate of the De Chiang Kai Shek College, and Chairman Workshop in January 2014, AMLA La Salle University/University of the East Emeritus of the Dr. Sun Yat Sen Society, training in August 2014, and Corporate with a Bachelor of Science Degree in all of which are not listed in the PSE. He Governance training in June 2015. Commerce. is a graduate of the National Jean Kuan Director Sy presently serves as President College with a degree of Bachelor of of PSE-listed company SM Investments Science in Business Administration. Corporation, and also holds positions in BOARD OF DIRECTORS
various companies not listed in the PSE, seminar on Anti-Money Laundering Act conducted by BSP in 2014. He is such as Director of SM Synergy Properties of 2001 in 2009, Corporate Governance affiliated with the following companies Holdings Corporation, Sybase Equity workshop/training in 2014 and 2015, listed in the PSE: (1) SM Investments Investments Corporation, and Tagaytay and AMLA trainings in 2014 and 2015. Corporation, as Director, Executive Resort Development Corporation. He Director Kuan is the founder and Vice President and CFO, and member holds a Bachelor of Science degree in former President of Chowking Food of the Executive Committee; (2) Atlas Commerce, Major in Finance, from the Corporation, and former Chairman/ Consolidated Mining and Development De La Salle University. President of Lingnam Enterprises, Inc. Corporation, as Director and Member He holds various directorship/trusteeship of the Executive Committee; (3) Belle ALBERTO S. positions; among others, he is presently Corporation, as Director; (4) BDO YAO, 69, Filipino, member of the Boards of Trustees of St. Unibank, Inc. as Adviser to the Board is an Independent Luke’s Medical Center, SLMC Global City, of Directors; (5) Premium Leisure Director for Inc., St. Luke’s College of Medicine – Corporation, as Adviser to the Board; four (4) years William H. Quasha Memorial, and Brent and (6) SM Prime Holdings, Inc., as in accordance International School, Inc., independent Adviser of Audit and Risk Management with SEC director of Seaoil Phils., Inc. and Towers Committee. Mr. Sio also serves as Memorandum Watson Insurance Brokers Philippine Director in several companies not listed Circular No. 9, Inc., and of Bank subsidiaries CBSI and in the PSE, including OCLP (Ortigas) Series of 2011. He was first elected to the CBCC, all non PSE-listed companies. Holdings, Inc., Manila North Tollways China Bank Board on July 7, 2004. He He is also an Independent Director of Corporation, and CityMall Commercial attended ICD’s Director Orientation Course Far Eastern University, Incorporated, a Centers Inc. He is the President of in 2004, and corporate governance company listed in the PSE. Director Kuan SM Foundation, Inc. and GlobalFund workshops/seminars in 2014 and 2015; is a graduate of the University of the Holdings, Inc. Mr. Sio was formerly a and, BSP-AMLC’s seminars on Anti-Money Philippines with a Bachelor of Science Senior Partner at SyCip Gorres Velayo & Laundering Act in 2009 and 2014. He degree in Business Administration, Co. (SGV). He was voted as CFO of the was Vice President for Merchandising of obtained his MBM from the AIM, and Year in 2009 by the Financial Executives Zenco Sales, Inc. from 1968 to 1975. He was conferred a Doctorate degree of the Philippines (FINEX). He was also currently serves in companies not listed in in Humanities Honoris Causa by the awarded as Best CFO (Philippines) in the PSE – as President & CEO of Richwell Lyceum Northwestern University. He also various years by Hong Kong-based Trading Corporation, Richwell Philippines, attended the Top Management Program business publications such as Alpha Inc., Europlay Distributor Co., Inc., and conducted by the AIM in Bali, Indonesia. Southeast Asia, Corporate Governance Internationale Globale Marques, Inc.; Asia, Finance Asia and The Asset. Mr. President of Richphil House Incorporated, JOSE T. SIO, Sio is a Certified Public Accountant and Megarich Property Ventures Corp.; 76, Filipino, was and holds a Bachelor of Science degree and Director of Bank Subsidiaries CBSI and first elected as in Commerce, major in Accounting, CBCC. Director Yao holds a Bachelor of Bank Director from the University of San Agustin. Science degree in Business Administration on November He obtained his Master’s degree in from the Mapua Institute of Technology. 7, 2007. He Business Administration from the New has completed York University, U.S.A. ROBERTO F. various trainings KUAN, 67, here and Filipino, is an abroad, including debt and equity 63 Independent financing during the Euromoney
Director for Conference in China in 2005, Annual Report 2015 four (4) years corporate governance seminars/ in accordance workshops conducted by the De La with SEC Salle University in 2003 and by the ICD Memorandum in 2014, forum on good governance, Circular No. 9, Series of 2011. He was first business ethics, and compliance by elected to the China Bank Board on May the Good Governance Advocates and 5, 2005. He completed the Orientation Practitioners of the Philippines in 2014, Course on Corporate Governance in 2005, and anti-money laundering seminar MANAGEMENT COMMITTEE Annual Report 2015 64
Gilbert U. Dee, Director and Vice Chairman the Bank of the Philippine Islands (BPI) and from the Ateneo de Manila University and of the Board Citytrust/BPI, among others. He is a graduate a Masters in Business Administration (MBA) of the University of San Francisco, USA with degree from the Cornell University. Ricardo R. Chua, Director, President and a Bachelor of Science degree in Business CEO; Management Committee Chairman Administration. William C. Whang, 57, Filipino, Executive Vice President, is the Head of Lending Antonio S. Espedido, Jr., 60, Filipino, Romeo D. Uyan, Jr., 53, Filipino, Executive Business Segment, and concurrent Head of Executive Vice President, is the Head of Vice President, is President of China Bank Institutional Banking Group. He also holds Financial Capital Markets & Investment Capital Corporation, subject to approval of the positions in Bank subsidiaries, currently as Segment, and concurrent Head of Treasury Monetary Board. Mr. Uyan served in various Director/Treasurer of China Bank Insurance Group. He is also a Director of China Bank senior management positions at UBS AG Brokers, Inc. (CBC-IBI) and CBC Properties subsidiaries, China Bank Savings, Inc. (CBSI), Singapore, Barclays Singapore, Credit Suisse and Computer Center, Inc. (CBC-PCCI), and and China Bank Capital Corporation (CBCC), Singapore, ING Barings Hongkong, Philippine Director of CBCC. He is a former Director and CBC Forex Corporation (CBC Forex). Commercial International Bank, ING Manila, and currently a member of the Operations Mr. Espedido has had extensive trainings Citytrust Banking Corporation, and Far East Committee of BancNet, Inc. Over the years, on fund transfer pricing, strategic thinking, Bank and Trust Company, and had attended Mr. Whang attended trainings in banking project and portfolio management, and banking-related seminars on corporate and related fields, including branch based corporate governance. Prior to joining governance, among others. He holds a Bachelor marketing, quality service management, China Bank, he held officership positions in of Science degree in Management Engineering sales management, and corporate From left to right: Alberto Emilio V. Ramos, Ramon R. Zamora, Virgilio O. Chua, Alexander C. Escucha, Nancy D. Yang, William C. Whang ,Gilbert U. Dee, Ricardo R. Chua (Management Committee Chairman), Antonio S. Espedido, Jr., Carlos M. Borromeo, Rosemarie C. Gan, Patrick D. Cheng, Romeo D. Uyan, Jr., and Rene J. Sarmiento.
governance. He has more than 30 years advanced derivatives, asset liability and risk He is also a Director of Manila Overseas of banking experience, formerly holding management, Anti-Money Laundering Act Commercial Inc. and SR Holdings Corporation. senior management positions in Metrobank, (AMLA), investor relations, and corporate Prior to joining the Bank, Mr. Cheng held Republic National Bank of New York, governance. In the past, he served in the various senior management positions at International Exchange Bank, Security Bank, Boards of Security Finance Inc. and SB Cards Philippine Bank of Communications, HSBC Sterling Bank of Asia, and other financial Corporation, handled senior management Savings Bank (Philippines), HSBC (Philippine 65 institutions. He holds a Bachelor of Science positions at Security Bank Corporation, Branch), and Citibank N.A. (Philippine degree in Commerce, Major in Business Standard Chartered Bank, and was the Branch). He was previously the President of
Management, from the De La Salle University. President and COO of Planters Development HSBC Savings Bank (Philippines) and was also Annual Report 2015 Bank (PDB). He is a graduate of the Ateneo de a two-term President of the Chamber of Thrift Carlos M. Borromeo, 50, Filipino, Senior Manila University with a degree in Bachelor Banks from 2012 to 2013. He had extensive Vice President, is Chief Financial Officer and of Arts Major in Economics. He obtained his training on corporate governance, anti-money Head of Financial Management Segment of Masters in Business Management (MBM) from laundering, asset liability management, the Bank effective January 1, 2016, subject the Asian Institute of Management (AIM). operational risk, and information security. to the approval of the Monetary Board. He is He graduated from the University of the also a Director of Megalink Corporation. Mr. Patrick D. Cheng, 53, Filipino, Senior Vice Philippines with a Bachelor of Science degree Borromeo had attended various trainings in President, is Head of Trust Group and the in Business Administration and Accountancy, banking and related fields, including Treasury Bank’s Officer effective December 16, 2015, magna cum laude. He also holds an MS Management, financial engineering and subject to approval of the Monetary Board. Management degree, with Distinction, from MANAGEMENT COMMITTEE
the Hult International Business School in Alberto Emilio V. Ramos, 56, Filipino, Senior and corporate governance, among others. Cambridge, Massachusetts, and finished Vice President, is the President of China Bank He was formerly a Vice President at Citibank the Trust Operations and Investment Savings, Inc. (seconded in 2011). He also sits N.A. He holds a Bachelor of Arts degree Annual Report 2015 Management course, with Distinction, from in the boards of Manulife China Bank Life in Economics from the Ateneo de Manila the Trust Institute of the Philippines. He is a Assurance Corporation (MCBLife) and CBCC, University.
66 Certified Public Accountant, having placed and is Trustee/Treasurer of the Chamber 7th in the National Exams. In 2010, he was a of Thrift Banks. He completed numerous Virgilio O. Chua, 49, Filipino, First Vice Distinguished Alumnus Awardee of the Virata trainings related to banking such as on SME President, is Managing Director, Treasurer School of Business (VSB) of the University of Banking, corporate governance, treasury and Head of Investment Banking of China the Philippines – Diliman. products, asset-liability management, credit Bank Capital Corp. (CBCC) effective February and financial analysis, and strategic marketing 5, 2016 (seconded on same date), subject Alexander C. Escucha, 59, Filipino, Senior planning. Prior to joining the Bank in 2006 as to Monetary Board approval. He is also Vice President, is Head of the Bank’s Investor Head of Private Banking Group, Mr. Ramos Board Director, Vice President, Debt Capital and Corporate Relations Group. He is also was President of Philam Asset Management, Markets Committee of the Investment House a Director of CBSI, and Chairman of the Inc., and held key positions in local and Association of the Philippines from 2014 to UP Visayas Foundation, Inc., and is an international banks, including the Bank of present. He has 28 years of experience in international resource person at The Asian the Philippine Islands and Citytrust Banking the fields of investment banking, corporate Banker. Mr. Escucha has served as President Corporation. He graduated from the De La banking, and credit risk management, and of the Philippine Economic Society and Salle University with a Bachelor of Arts degree held senior executive positions at Citibank concurrent Chairman of the Federation in Political Science and Bachelor of Science N.A., First Metro Investment Corp., and ING of ASEAN Economic Associations (FAEA), degree in Marketing Management. He also Bank, N.V. Mr. Chua had extensive training and as President of the Corporate Planning holds an MBM degree from the AIM and has on capital markets and investment banking, Society of the Philippines, and Bank a Treasury Professional Certificate from the project finance, mergers and acquisitions, Marketing Association of the Philippines. Bankers Association of the Philippines. account management, financial markets, He had attended various seminars such corporate risk assessment, anti-money as the corporate governance orientation Nancy D. Yang, 76, Filipino, Senior Vice laundering and corporate governance. He holds conducted by the ICD in 2015, and had been President, is Head of the Bank’s Retail Banking a Management Engineering degree from the a delegate in various economic briefings Business. She also serves in the boards Ateneo de Manila University. and conferences, such as the JP Morgan of CBSI as Vice Chairman and CBC-IBI as Philippines Conference and The Asian Banker director. Mrs. Yang had attended several Rene J. Sarmiento, 62, Filipino, was Senior Summit in 2015. Prior to joining China training programs here and abroad, including Vice President of the Bank until his retirement Bank, he was Vice President at International the Allen Management Program, BAI Retail on December 31, 2015. He was the former Corporate Bank. He obtained his Bachelor of Delivery Conference in Arizona and Florida, Head of the Bank’s Trust Group and also Arts degree in Economics, cum laude, from USA, Environmental Risk Management for Director of Bank subsidiary CBSI. He attended the University of the Philippines. Bankers conducted by the Bank of America, seminars and trainings including those relating Branch Based Marketing, Internal Credit Risk to corporate governance, estate planning, Rosemarie C. Gan, 58, Filipino, Senior Vice Rating, and Corporate Governance seminars risk management practices on trust, other President, is Deputy Group Head of the conducted by Bangko Sentral ng Pilipinas fiduciary business and investment management Bank’s Retail Banking Business. She is also (BSP) and The Institute of Corporate Directors activities. He has over 30 years of investment a Director in the Bank subsidiary CBSI. She (ICD). She holds a Bachelor of Arts degree and trust operations experience gained has been with the Bank for over 37 years, from the Philippine Women’s University and from Ayala Investment and Development and had extensive exposure and training in a post graduate scholarship grant in Human Corporation, Far East Bank & Trust Company, marketing, financial analysis, credit portfolio Development & Child Psychology from the and Security Bank Corporation. A Certified management, strategic planning and Merrill Palmer Institute in Detroit, Michigan, Public Accountant, Mr. Sarmiento obtained corporate governance. She attended the BAI USA. She is related within the second civil his Bachelor of Science degree in Commerce, Retail Delivery Conference conducted by the degree of consanguinity to Director Major in Accounting, magna cum laude, from Bank Administration Institute in 2012, and Peter S. Dee. the De La Salle University. He also holds an Corporate Governance workshops/seminars MBM degree from the AIM. conducted by the ICD in 2014 and 2015. Ms. Ramon R. Zamora, 67, Filipino, is Senior Vice Gan graduated magna cum laude from the President and Head of the Bank’s Centralized University of Santo Tomas with a Bachelor of Operations Group, Remittance Business Science degree in Business Administration, Operations, and Correspondent Banking. He Major in Management, and was a recipient is also a Director of Bank Subsidiaries CBC- of the distinguished Rector’s Award. PCCI, CBC Forex, and CBSI. Mr. Zamora had She attended the AIM’s Advanced Bank extensive training on financial products, credit Management Program in 2013. risk management, IFRS, electronic banking, CHINA BANK SENIOR OFFICERS Annual Report 2015 66
FIRST VICE PRESIDENTS From left: Shirley G.K. Tan, Elizabeth C. Say, Victor O. Martinez, Delia Marquez, Gerard Majella T. Dee, Ananias S. Cornelio III, and Philip S. L. Tsai 67 Annual Report 2015
VICE PRESIDENTS From left: Geoffrey D. Uy, Madelyn V. Fontanilla, Henry D. Sia, Lilibeth R. Cariño, Angela D. Cruz, Cristina P. Arceo, Manuel M. Te, Filemon Cecilio A. Cabungcal, Maria Luz B. Favis and Corazon I. Morando SENIOR OFFICERS Annual Report 2015 68
VICE PRESIDENTS From left: Marisol M. Teodoro, Jose Francisco Q. Cifra, Marilyn G. Yuchenkang, Maire Karabel D. Viola, Marie Carolina L. Chua, Noemi L. Uy, Cristina F. Gotuaco, Shirley C. Lee, Layne Y. Arpon, Betty L. Biunas, and Luis M. Afable,Jr.
VICE PRESIDENTS From left: Dorothy T. Maceda, Stephen Y. Tan, Clara C. Sy, Maria Rosanna L. Testa, Ma. Cristina C. Hernandez, Domingo P. Dayro, Jr., Wilfredo L. Sy, Marissa B. Espino, Jose L. Osmeña, Jr., Melissa F. Corpuz and Virginia Y. Uy CHINA BANK SUBSIDIARIES MANAGEMENT
SUBSIDIARIES: CHINA BANK CAPITAL CORPORATION CHINA BANK INSURANCE BROKERS CBC PROPERTIES AND COMPUTER CENTER, INC. Lilian Yu and Manuel C. San Diego President Julieta P. Guanlao. VP Augusto P. Samonte, Chief Technology Officer Editha N. Young and General Manager Phillip M. Tan 69 Annual Report 2015
CHINA BANK SAVINGS From left: FVP Adonis C. Yap, SAVP Lani D. Larion, SVP Maria Teresita R. Dean, EVP Jaime Valentin L. Araneta, VP Emmanuel C. Geronimo, VP James Christian T. Dee, VP Maria Lilibeth C. Paradero, FVP Jan Nikolai M. Lim, SVP Liberty S. Basilio, FVP Luis Bernardo A. Puhawan and SVP Jose F. Acetre MANAGEMENT DIRECTORY
VICE CHAIRMAN SENIOR ASSISTANT VICE Randall A. Evangelista Reylenita M. Del Rosario Gilbert U. Dee PRESIDENTS Angelito T. Fernandez Katherine Jean S. Diamante Evelyn T. Alameda Susan U. Ferrer Leilani B. Elarmo
Annual Report 2015 PRESIDENT & CHIEF Juan Emmanuel B. Andaya Pablito P. Flores Eleanor Q. Faigao EXECUTIVE OFFICER Patrick Y. Ang Marissa G. Garcia Rosie T. Faytone Ricardo R. Chua Rogelio B. Avellanosa Ma. Salome D. Garcia Ronaldo H. Francisco 70 Victor Geronimo S. Calo Virginia G. Go Alexander V. Gaite EXECUTIVE VICE Victoria G. Capacio Dennis S. Go II Hyacinth M. Galang PRESIDENTS Camilo S. Cape Gladys Antonette P. Isidro Michelle Lorei R. Gayoma Antonio S. Espedido, Jr. Jeannette H. Chan Alex A. Jacob Maria Anacleta B. Gloria William C. Whang Grace A. Cruz Vivian T. Kho Alvin C. Go Romeo D. Uyan, Jr. Patricia J. Custodio Maria Margaret U. Kua Marites B. Go Ricardo J. De Guzman III Melecio C. Labalan, Jr. John Melvin D. Gomez SENIOR VICE PRESIDENTS Gemma B. Deladia Ma. Teresa O. Lao Lucia I. Gorayeb Carlos M. Borromeo Norman D. C. Del Carmen Katherine N. Manguiat Hector B. Holgado Patrick D. Cheng Therese G. Escolin Ordon P. Maningding Ruth D. Holmes Alexander C. Escucha Marlon B. Hernandez Ronald R. Marcaida Welson B. Lacuesta Rosemarie C. Gan Grace Y. Ho Erlan Antonio B. Olavere Ma. Giselle A. Liceralde Alberto Emilio V. Ramos Ma. Arlene Mae G. Lazaro Remedios Emilia R. Olivar Margie V. Limqueco Nancy D. Yang Eric Y. Lee Enrico J. Ong Ma. Gladys C. Liwag Ramon R. Zamora Maria Alicia P. Libo-on Sheilah B. Paglinawan Mary Ann L. Llanes Juan Jesus C. Macapagal Ma. Victoria G. Pantaleon Maria Melinda O. Lo FIRST VICE PRESIDENTS Jennifer Y. Macariola Josephine D. Paredes Gloria G. Mañosca Virgilio O. Chua Mandrake P. Medina Julie Ann P. Santiago Jose G. Maravilla III Ananias S. Cornelio III Juvy J. Pabustan Arnulfo H. Roldan Victor P. Mayol Gerard Majella T. Dee Frederick M. Pineda Ana Ma. Raquel Y. Samala Sheila Jane F. Medrero Victor O. Martinez Rafael Ramon C. Ramos Alejandro F. Santos Jerome C. Musico Delia Marquez Danilo T. Sarita Edgardo M. Santos Susie W. Napili Elizabeth C. Say Francisco Eduardo A. Fernando S. Santos, III Tadeos R. Natividad Shirley G.K.T. Tan Sarmiento Charmaine V. Santos Gil P. Navelgas Cynthia U. Surpia Maria Sheila V. Sarmenta- Wendy G. Ngo VICE PRESIDENTS Belenette C. Tan Dayao Eleanor C. Ona Luis M. Afable, Jr. Jeanny C. Tan Ma. Cecilia D. So Sonia M. Ong Cristina P. Arceo Julieta C. Tan Maria Marta Theresa S. Suarez Lilian B. Orlina Layne Y. Arpon Irene C. Tanlimco Roxana Angela S. Tan Alfred Paul L. Paiso Betty L. Biunas Ma. Cecilia V. Tejada Nelson L. Tiu Mary Y. Pe Filemon Cecilio A. Cabungcal Ma. Edita Lynn Z. Trinidad Edna A. Torralba Flora C. Peña Lilibeth R. Cariño Jasmin O. Ty Josefina Anna D. Trinidad Hazel Marie A. Puerto Marie Carolina L. Chua Esmeralda R. Vicente Christopher C. Ty Noreen S. Purificacion Jose Francisco Q. Cifra Rosario D. Yabut Hudson Q. Uy Alvin A. Quintanilla Melissa F. Corpus Carina L. Yandoc Lauro C. Valera Claire L. Ramirez Angela D. Cruz George C.Yap Anthony Ariel C. Vilar Evelyn O. Ramos Domingo P. Dayro, Jr. Jocelyn O. Yu Sandra Mae Y. Yao Roberto C. Ramos James Christian T. Dee Mary Joy L. Yu Michelle Y. Yap-Bersales Ma. Luisa C. Rivera Marissa B. Espino Hanz Irvin S. Yoro Eleanor D. Rosales Maria Luz B. Favis ASSISTANT VICE Mirasol C. Ruiz Madelyn V. Fontanilla PRESIDENTS SENIOR MANAGERS Anita Y. Samala Cesaré Edwin M. Garcia Baldwin A. Aguilar Kathlyn I. Abalos Roberto J. Sanchez, Jr. Cristina F. Gotuaco Ma. Hildelita P. Alano Rommel M. Agacita Edellina C. Santiago Ma. Cristina C. Hernandez Ramiro A. Amanquiton Nellie S. Alar Ma. Graciela C. Santos Shirley C. Lee Edwin R. Aquino Haris P. Alcantara Corina R. Sesdoyro Dorothy T. Maceda Marissa A. Auditor Jay Angelo N. Anastacio Ernanie V. Silvino Corazon I. Morando Faye Theresa S. Babasa Ma. Cristina G. Antonio Anna Liza M. Tan Jose L. Osmeña, Jr. Ma. Luisa O. Baylosis Cyril Nicholas A. Bandiola Michaela L. Teng Henry D. Sia Eric Von D. Baviera Freddie S. Bandong Mary Ann E. Tiu Wilfredo L. Sy Jesus S. Belaniso III Limer Quinnie M. Barbasa Arnel Ferdinand R. Tiglao Clara C. Sy Yasmin I. Biticon Patricia Ann B. Bello Jacqueline T. Tomacruz Manuel M. Te Jonathan C. Camarillo Robert O. Blanch Karen W. Tua Marisol M. Teodoro Alex M. Campilan Sherry Anne F. Canillas Cristina C. Ty Stephen Y. Tan Crisostomo L. Celaje Hermenegildo G. Carino Norman P. Ureta Maria Rosanna Catherina L. Victoria L. Chua Eleanor S. Cervantes David Andrew P. Valdellon Testa Maria Luisa C. Corpus Ma. Rosalie F. Cipriano Jonathan T. Valeros Noemi L. Uy Ma. Jeanette D. Cuyco Aida D. Cristobal Edwin S. Ventura Geoffrey D. Uy Esperose S. De Claro Amelia Consolacion B. Cruz Catherine D. Yabes Virginia Y. Uy Reynaldo P. Del Rosario, Jr. Allan Gerard C. Daluz April Marie O. Yago Maire Karabel D. Viola Jinky T. Dela Torre Rodolfo S. De Lara Manuel O. Yap Marilyn G. Yuchenkang Eliseo P. Doroteo Marc Patrick A. Dela Paz Vivian L. Yong Mary Ann R. Ducanes Ma. Lourdes L. Dela Vega MANAGEMENT DIRECTORY - SUBSIDIARIES
CHINA BANK SAVINGS CHINA BANK CAPITAL CORPORATION PRESIDENT VICE PRESIDENTS Alberto Emilio V. Ramos James Christian T. Dee* PRESIDENT Treasury Head Romeo D. Uyan, Jr. EXECUTIVE VICE PRESIDENT Jaime Valentin L. Araneta Edgar D. Dumlao MANAGING DIRECTOR AND Operations Head Corporate Secretary TREASURER Virgilio O. Chua SENIOR VICE PRESIDENTS Emmanuel C. Geronimo Jose F. Acetre Planning and Accounting Collections and Assets Services Head DIRECTORS Recovery Head Anna Maria P. Ylagan Manuel C. San Diego Liberty S. Basilio Trust Officer SME Lending Head Lilian Yu Maria Lilibeth C. Paradero Maria Teresita R. Dean Human Resources Head Credit Management Head Love Virgilynn T. Baking Editha N. Young* Information Technology Head Michael L. Chong FIRST VICE PRESIDENTS Luis Bernardo A. Puhawan Grace T. Chua Controllership Head SENIOR ASSISTANT VICE PRESIDENTS Rhodin Evan O. Escolar Adonis C. Yap Lani D. Larion Marketing Services Head Branch Banking Head
Odel S. Janda Marivic B. Landicho Legal Head Internal Auditor
Jan Nikolai M. Lim ASSISTANT VICE Consumer Lending Head PRESIDENTS Raymond C. Apo Risk Officer
Maribel M. Dimayuga Compliance Officer
Hanz Irvin S. Yoro* IT Security Officer
MANULIFE CHINABANK LIFE CHINABANK INSURANCE CHINABANK PROPERTIES AND ASSURANCE CORPORATION BROKERS COMPUTER CENTER, INC.
PRESIDENT AND CHIEF PRESIDENT GENERAL MANAGER EXECUTIVE OFFICER Julieta P. Guanlao Phillip M. Tan Robert D. Wyld VP/CHIEF TECHNOLOGY OFFICER Editha N. Young 71 VICE PRESIDENT Augusto P. Samonte Annual Report 2015 ASSISTANT VICE PRESIDENTS Restituto B. Bayudan
Joseph Jeffrey B. Javier
Joseph T. Yu
* With interlocking position in China Bank OF TRUST AND PARTNERSHIP Annual Report 2015 72
1920 Dee C. Chuan leads a group of top 1945 On July 23, Albino SyCip and around 1970 China Bank is still the biggest private Filipino-Chinese businessmen to found China 50 of the Bank’s old employees reopen China commercial local bank, with P565.997 M in Bank, which opens for business on August 16, Bank. Albino is president and general manager; resources. It has 4.1% of the assets in the 1920. George Dee Se Kiat is VP. commercial banking system. 1975 The Bank increases its Filipino 1924 Albino SyCip joins China Bank on 1948 China Bank has lent heavily to build ownership up to the 70% level required by a full-time basis and will be its chairman for the local economy, extending P182.84 M to Central Bank regulations. This paves the way for decades; over the next 53 years, he will define various reconstruction efforts and economically the Bank’s major branch expansion program. and exemplify its distinctive values. strategic sectors; opens its first Cebu branch 1978 On May 2, 1978, Albino SyCip, 91, 1925 From the beginning, it maintains an 1952 Albino, who is now 64, gives up the passes away due to pneumonia. His successor international perspective. China Bank opens its China Bank presidency to George Dee Se Kiat, as chairman George Dee Se Kiat passes away Xiamen branch. but remains chairman and general manager. the following year. DK Chiong becomes SVP. 1927 China Bank is listed in the Manila 1980 On December 24, Bank chairman DK Stock Exchange. 1954 Dong-Pao Loh becomes manager of Chiong passes away due to a heart attack. The the Bank’s Cebu branch. DP Loh becomes an next generation of leadership, Gilbert and Peter 1929 The Bank opens a branch in institution in Cebu business, becoming friend Dee, begin to take over the reins. Shanghai. and banker to many local tycoons. 1988 Introduced Tellerphone, the first 1931 The Great Depression hits the Philippine banking sector; hit by runs, a rival 1955 China Bank breaches the P100 M phone banking service in the country. bank goes under, but China Bank weathers the mark for the first time, with P109.597 M in
crisis unshaken. resources and P70.292 M in deposits. It is the 1990 Head office officially transferred to biggest private commercial local bank. Makati. 1935 China Bank has P21.537 M in resources and is by now one of the country’s 1960 China Bank is still the biggest private 1996 Accessed offshore capital markets by biggest banks. It provides key financing for commercial local bank. It has 7.2% of all the issuing US$50 MN FRCD many of the country’s biggest conglomerates. assets in the commercial banking system, with P174.417 M in resources. 1997 In July, the Asian economic crisis begins. The peso’s devaluation hurts importers 1940 On October 27, Bank founder Dee C. Chuan, at the age of 52, dies of tuberculosis 1965 China Bank has P287.446 M in and manufacturers badly; as they struggle to in California. His son George Dee Se Kiat takes resources and P207.933 M in deposits. It has a adjust, China Bank finds ways to help its clients. over as head of the Dee family. profit of P7.144 M on gross income of P24.663 2004 Henry Sy of the SM Group acquires
1941 On December 8, the Pacific War 1968 China Bank introduces the first significant stake in China Bank. begins with the bombing of Pearl Harbor. On mainframe computer, an IBM 360, to Philippine December 21, the Philippines is invaded. banking, enabling its customers to do their 2005 Offered Internet Banking and transactions online. Remittance services.
1942 In April, the Japanese military shuts down China Bank and liquidates its assets. 1969 China Bank building was constructed 2006 Completed its first international Albino SyCip and George Dee Se Kiat are along Paseo de Roxas, Makati US$53 MN secondary share offering (3,388,284 arrested and spend months in jail. common shares) 2007 SignedSi d a bbancassurance joint venture • The Bank also acquires Pampanga-based Rural • China Bank wins a Bell Award for Corporate with Manulife; acquired Manila Banking Corp Bank Unity Bank to be merged with its thrift Governance for the third year in a row—the with 75 branch licenses bank subsidiary China Bank Savings (CBS) in only bank among the awardees and one 2013. of only two companies to have won three times—and wins Corporate Governance 2008 Launched China Bank Savings, Inc. • Wins Philippine Stock Exchange’s 1st Bell (savings bank subsidiary) Awards Asia’s Outstanding Company on Corporate Governance Award. • As the crisis hits the world economy, several 2013 China Bank signs up partnership local banks take a significant hit from bets on 2015 BSP, PDIC and SEC gave final subprime mortgage derivatives. China Bank, with MasterCard in its foray into the credit card business approval of the China Bank Savings and with its conservative policies, is unaffected. Plantersbank merger • China Bank wins PSE’s Bell Award for 2009 The Bank has P234 B in assets, Corporate Governance for the second • China Bank MasterCard Prime, Platinum, P193 B in deposits, net income of P4.1 B, 247 consecutive year. and World credit cards are officially launched branches, and 374 ATMs. Its profitability and during China Bank’s 95th Anniversary market cap rival those of the biggest players. • The Bank strengthens its operations with a new wealth management system developed • China Bank Capital Corporation, China Bank’s • Cited by Stern, Stewart and Co. as one of by Sopra Banking Software; a leading-edge investment house subsidiary, gets BSP approval the top 100 ASEAN companies in terms of ATM/payment switch and Authentic from on May 14 and by the SEC on November 27; delivering shareholder value for 2002-2008 Alaric EVP Romeo D. Uyan, Jr. is appointed president • China Bank upgrades its treasury system with 2010 The Bank marks its 90th year; it is still 2014 Ricardo R. Chua succeeds Peter S. the Calypso front-to-back trade processing one of the strongest and most profitable banks Dee as the new president & chief executive solution to support growing treasury in the country. officer on September 1, 2014. operations and trading capabilities Best Wealth Management House in • China Bank acquires Planters Development 2011 • China Bank embarks on a “Branch Re-Design the Philippines, awarded by The Asset Bank Project” as part of its brand-building and • Hans T. Sy becomes chairman of China Bank. • China Bank raises P8 billion from stock rights branch development and expansion strategies
offer to strengthen capital base and pursue 73 • China Bank is awarded Best Wealth • For the 4th consecutive time, China Bank expansion programs. Management House in the Philippines by wins PSE’s Bell Award—the only bank The Asset Magazine and receives for the
• China Bank increases its ownership stake among the awardees and the only awardee Annual Report 2015 second time the Gold Award in Corporate from 5% to 40% in Manulife China Bank Life to have won for four years in a row (listed Governance from the Institute of Corporate Assurance Corp. (MCBLife), its bancassurance companies category), and for the 2nd time, Directors (ICD). joint venture with Manulife Philippines. wins Outstanding Company on Corporate Governance – Philippines at 2015 Best of Asia 2012 China Bank acquires a new core Awards - Corporate Governance Asia banking system—the more powerful Infosys Finacle Solution. 747 Annual Report 2015 94 92 90 89 88 87 86 85 83 76 75 FINANCIAL STATEMENTS CONTENT
Notes toFinancialStatements Statements ofCashFlows Statements ofChangesinEquity Statements ofComprehensiveIncome Statements ofIncome Balance Sheets Independent Auditors’Report for FinancialStatements Statement ofManagement’s Responsibility Report oftheAuditCommittee Adequacy Disclosure onCapitalStructureand Operations andFinancialCondition Management’s DiscussiononResultof Management’s Discussion on Result of Operations and Financial Condition
RESULT OF OPERATIONS China Bank registered a consolidated net income of P5.60 billion for full-year 2015, up by 9.53% from the P5.11 billion earned for full year 2014. This translated to a 9.62% return on average equity and 1.17% return on average assets.
Total operating income consisting of net interest income and fee-based income increased by 3.84% or P0.72 billion to P19.57 billion. Total operating expenses (including provision for impairment and credit losses) increased by 8.15% or P0.99 billion as the Bank continued to pursue its expansion strategy.
Net interest income was higher by 7.07% to P15.09 billion from P14.09 billion due to larger volume of loans and securities portfolio coupled with an improved share of low-cost deposits to total deposits, resulting in a net interest margin of 3.37% from last year’s 3.30%.
Total fee-based income decreased by 5.72% to P4.49 billion from P4.76 billion last year due to lower trading gains and miscellaneous income. Trading and securities gain of P466.83 million were 12.78% below last year’s P535.26 million as adverse market conditions resulted in subdued trading opportunities. Trust fees grew by P24.75 million to P276.24 million because of the higher volume of assets under management. Gain on asset foreclosure and dacion transactions reached P274.98 million, up by 98.46% from last year because of the higher mark-to-market revaluation gain of the Bank’s foreclosed assets. Furthermore, gain on sale of investment properties of P375.75 million was up by 5.83% due to higher ROPA sales vis-à-vis last year. Service charges, fees, and commissions registered a 17.45% improvement to P1.83 billion because of signifi cant contributions from investment banking, remittance business, and branch-based fees. The Bank also booked a share in the net loss of MCBLife amounting to P37.89 million, signifi cantly higher year-on-year as MCBLife started to absorb the cost of underwriting insurance policies. Miscellaneous income declined by 39.12% to P966.86 million, mainly due to the one-time gain in 2014 from the Bank’s increased stake in MCBLife from 5.00% to 40.00%.
Despite the on-going expansion, total operating expenses (excluding provision for impairment and credit losses) only increased by 3.97% to P12.19 billion for a cost-to-income ratio of 62.30%. Compensation and fringe benefi ts, which accounts for 38.34% of the total operating expenses increased by 12.08% mainly from the higher manpower complement and salary adjustments from the recent collective bargaining agreement. The on-going business and network expansion also increased the following costs: depreciation and amortization (up by 6.25%), stationary, supplies and postage (up by 23.53%), insurance including PDIC payments (up by 10.30%), and professional fees, marketing and other related services (up by 7.31%). With the growth in the Bank’s loan portfolio, provision for impairment and credit losses increased to P966.57 million resulting in a loan loss coverage ratio of 87.73%.
The Bank’s sustained profi tability contributed to its capital strength and enabled it to consistently pay dividends to stockholders. For 2015, China Bank paid cash dividends of P1.00 per share or a total of P1.72 billion, which represents a total payout of 33.54% of prior year’s net income. The Bank also declared an 8.00% stock dividend amounting to P1.37 billion.
FINANCIAL CONDITION The Bank’s total assets expanded by 11.80% to P526.83 billion from P471.22 billion mainly from the robust growth in liquid assets and loans.
The Bank’s loan portfolio (net, inclusive of UDSCL) grew by 6.66% to P309.76 billion from P290.42 billion mainly from higher demand across all customer segments (corporate, commercial and consumer). The Bank’s non-performing loans ratio for the period was 2.52% while loan loss coverage ratio registered at 87.73%. 75 The Bank’s liquidity ratio stood at 36.09%, better than last year’s 32.89%. Total investment securities which consist of Financial Assets at Fair Value through Profi t or Loss, Available-for-Sale and Held-to-Maturity Financial Assets reached P71.21 billion, representing 13.52% of total assets as the Bank expanded its bond holdings.
On the liabilities side, total deposits increased by 10.01% to P439.27 billion from P399.30 billion with the expansion in the branch network. Total low-cost deposits (demand and savings) grew by 17.77% to P227.56 billion from P193.23 billion improving Annual Report 2015 the low-cost funding mix to 51.80% from 48.39% in 2014. Bills payable tripled to P19.09 billion mainly from the booking of US$158.00 million syndicated three-year term placement. The year also saw the retirement of the subordinated debt by the thrift bank subsidiary which amounted to P1.19 billion at the end of 2014.
Total capital funds grew to P59.17 billion, 4.60% higher than last year’s P56.57 billion primarily from higher retained profi ts. The Bank’s Common Equity Tier 1 (CET 1) and total CAR were computed at 12.58% and 13.50%, respectively. This year’s CAR remained higher than the 10-percent regulatory requirement. 76 Annual Report 2015 Risk-based capital components, including deductions, on a parent and consolidated basis: consolidated aparent and on deductions, including components, capital Risk-based suffi maintaining while opportunities growth of take advantage can that fundamentals capital vis-à-vis outlook earnings to Bank’s China respect with achieved be should abalance that recognizes Management Senior and Board to theindustry. The superior position acapital to maintain ability its with aligned are equally objectives to commercial ensure theBank’s that isnecessary environment. This in theregulatory changes and constraints alsotakes into which consideration planning capital theappropriate with areinitiatives undertaken business Major fundamentals. capital strong bymaintaining growth achieve sustainable only can Bank We China believe that Fundamentals Capital Less: Goodwill Goodwill Less: DOSRI Unsecured Less: Income Comprehensive Other Earnings Retained capital paid-in Additional stock common Paid-up 1Capital Tier Equity Common Less: Other Equity Investment Equity Other Less: Signifi Subsidiary in Less: Investment Less: Assets Defi Less: Intangible Other Less: Assets Tax Deferred Less: Investment Equity Other Less: Signifi Subsidiary in Less: Investment Less: Assets Defi Less: Intangible Other Less: Goodwill Assets Tax Less: Deferred Less: Total Qualifying Capital 2Capital Total Tier Provision Loss Loan General 2Capital Tier 1Capital Total Tier 1Capital Tier Additional 1Capital Total CET DOSRI Unsecured Less: Total Qualifying Capital 2Capital Total Tier Provision Loss Loan General 2Capital Tier 1Capital Total Tier 1Capital Tier Additional 1Capital Total CET Income Comprehensive Other Earnings Retained capital paid-in Additional stock common Paid-up 1Capital Tier Equity Common Minority Interest Minority Minority Interest Minority ned Benefi ned Benefi ned Disclosure OnCapitalStructureandAdequacy cant Minority Investment Minority cant Investment Minority cant t Pension Fund Assets/Liabilities Fund Pension t Assets/Liabilities Fund Pension t Qualifying Capital (Basel III) (Basel Capital Qualifying Qualifying Capital (Basel III) (Basel Capital Qualifying nPPMlin2014 Million PhP In nPPMlin2015 Million PhP In cient capacity to absorb shocks. to absorb cient capacity osldtdParent Company Consolidated osldtdParent Company Consolidated 1,3.918,537.29 18,537.29 8883 27,722.26 28,828.35 9303 29,399.17 29,370.35 0897 45,966.67 50,879.76 7333 43,011.81 43,011.81 47,393.36 47,393.36 7870 44,190.92 44,190.92 47,857.06 47,857.06 1031 46,876.78 51,053.14 2496)(442.12) (2,439.68) 1336)(1,373.67) (1,373.67) 1876)(1,288.61) (1,837.63) 2183)(2,128.35) (2,128.35) 7141 17,164.14 17,164.14 ,8.02,954.86 2,954.86 3,486.40 3,486.40 ,8.66,987.56 6,987.56 ,9.82,685.86 2,685.86 3,196.08 3,196.08 ,8.66,987.56 6,987.56 996)(442.12) (949.68) 293)(3,990.61) (249.33) 303)(349.45) (350.33) 366)(222.84) (376.64) 429)(420.69) (422.94) 160)(106.03) (106.03) 212)(7,084.02) (291.24) 714)(771.49) (771.49) 572)(222.84) (567.25) 877)(787.78) (857.79) 1.0 (10.01) (12.20) 4.1 (44.91) (44.91) 35 93.05 93.56 40 - 34.01 17 - 31.71 49)(2.76) (4.95) -- -- 77 Annual Report 2015
h Audited Financial Statements Items - - 2015 2014 2014 Reconciling In PhP Million In PhP Million In 12.58%12.58% 13.45% 13.45% 13.50% 14.37% 13.95%13.95% 15.18% 15.18% 14.88% 16.11% t, comprehensive other income nancial statements is presented is presented nancial statements - - 54,071.41 54,136.24 50,879.76 45,966.67 47,393.36 47,393.36 43,011.81 43,011.81 3,486.40 2,954.86 51,053.14 51,053.14 46,876.78 47,857.06 47,857.06 47,857.06 44,190.92 44,190.92 3,196.08 2,685.86 376,825.22 319,859.48 53,105.33 51,967.01 343,187.87 291,020.63 31.71 29.66 2.05 (20.83) (199.59) 178.76 114.39 (8.53) 122.92 Capital Consolidated Company Parent 3,196.08 3,196.08 - 6,987.56 - 6,987.56 Consolidated Company Parent 17,164.14 - 17,164.14 (5,248.27) (5,248.27) - 51,053.14 (5,514.35) 56,567.48 47,857.06 (8,710.42) 56,567.48 28,828.35 (3,283.70) 32,112.04 Qualifying Qualifying
Consolidated Audited Financial Statements Items 2015 Reconciling t pension fund assets/liabilities, in subsidiaries. and investment The other 34.01 39.55 (5.54) 175.03 26.51 148.52 Capital 6,987.56 - 6,987.56 3,486.40 3,486.40 - (1,032.83) 93.25 (1,126.08) ned benefi (6,678.05) (6,678.05) - 47,393.36 (11,777.54) 59,170.90 18,537.29 - 18,537.29 50,879.76 (8,291.14) 59,170.90 29,370.35 (5,258.80) 34,629.15 Qualifying Qualifying AFS securities AFS others and translation CET 1 capital Less regulatory adjustments CETTotal 1 capital Additional Tier 1 capital TierTotal 1 capital Tier 2 capital capital qualifying Total assets weighted Risk CET 1 capital ratio Tier 1 capital ratio capitalTotal ratio III Basel CET 1 capital Less regulatory adjustments CETTotal 1 capital Additional Tier 1 capital TierTotal 1 capital Tier 2 capital capital qualifying Total assets weighted Risk CET 1 capital ratio 6,678.05 Tier 1 capital ratio capitalTotal ratio 11,124.43 5,248.27 7,776.09 Basel III Basel In Php Million Additional paid-in capital Retained earnings Net unrealizedgains or losses on Cumulative foreign currency Non-controlling interest Tier 2 capital equity capital/Total qualifying Total Common stock Common Deductions Tier 1 (CET1) capital/Total equity and minority interest less required deductions such as unsecured credit accommodations to DOSRI, deferred income tax, tax, income deferred DOSRI, to accommodations credit unsecured as such deductions required The regulatory Basel III qualifying capital of the Group consists of Common Equity Tier 1 capital (going less concern capital), whic comprises paid-up interest common stock, additional paid-in capital, surplus including profi year current minority and intangibleother assets, goodwill, defi component of regulatory capital is Tier 2 capital (gone-concern capital), which includes general loan loss provision. A capital Full reconciliation of all regulatory capital back elements the balance to in the audited sheet fi conservation buffer comprised of 2.5% of CET 1 capital imposed is likewise in the Basel III capital ratios. below: Risk-based capital ratios: 78 Annual Report 2015 December 2015 net ofspecifi sheet exposures, On-balance Credit Risk The capital requirements for Credit, Market and Operational Risk are Risk listed basis: below, requirements Market aparent consolidated on Operational and for and Credit, capital The Tier 1 (CET1) capital/Total equity capital/Total 1(CET1) Tier Deductions currency foreign Cumulative on losses or gains unrealized Net earnings Retained capital paid-in Additional Common stock Total qualifying capital/Total equity 2capital Tier Million Php In te ses1,2.81,2.88654 8,665.47 251.54 8,665.47 721.69 11,525.08 251.54 0 251,552.50 11,525.08 721.69 977.75 262,396.76 2,299.97 76,791.60 0 3,415.27 18,721.97 9,997.94 14,228.65 296,968.77 125.72 977.75 2,309.16 76,791.60 18,721.97 14,228.65 312,709.73 3,415.27 46,430.01 9,997.94 125.72 86,107.22 2,299.97 0 47,349.01 20,727.94 16,449.17 11,315.70 86,107.22 2,309.16 128.93 48,293.27 20,727.94 16,449.17 11,315.70 49,212.27 0 128.93 Other Assets Acquired Properties Other and Real ContractSales Receivables Agreements Repurchase from arising Receivables and Loans Receivables and Loans Classifi Securities Debt Unquoted Financial Assets Held-to-Maturity Available-for-Sale Financial Assets Financial Assets at FVPL Banks Other from Due Due from BSP Items Cash Other and Checks Cash on Hand Total Capital Requirements Risk Operational Risk Market Risk Credit translation and others AFS securities oa nBlneSetAst 1,6.849506 4,8.7430,808.62 442,581.07 499,500.62 516,169.78 Assets Sheet On-Balance Total On-Balance Sheet Assets Sheet On-Balance Capital Requirement nPPMlin21 0421 2014 2015 2014 2015 Million PhP in e sLas1215 ,9.51015 1,021.55 1,021.55 1,291.55 1,291.55 ed as Loans Qualifying 1,2.3 1,2.3 - (11,124.43) (11,124.43) 5966 1,8.4 59,849.61 (13,882.94) 45,966.67 8572 18,537.29 - 18,537.29 9391 5677)35,046.89 (5,647.72) 29,399.17 3018 1,3.0 59,849.61 (16,837.80) 43,011.81 1027)(31)(979.61) (53.18) (1,032.79) ,5.62948 - 2,954.86 2,954.86 ,8.6-6,987.56 - 6,987.56 Capital 4.1(24)257.49 (12.48) 245.01 c provisions and not covered by CRM (in PhP million): PhP (in not byCRM covered and c provisions Reconciling Reconciling 2015 Items net of Specifi of net Exposures, Provisions Statements osldtdParent Consolidated 34,814.92 37,682.52 Financial Financial 2,590.65 Audited Audited c 276.95 osldtdParent Consolidated Covered byCRM Covered Parent Exposures not not Exposures
Qualifying 34,318.79 31,950.78 6867 9917)56,818.56 (9,941.78) 46,876.78 4109 1,2.4 56,818.56 (12,627.64) 44,190.92 7722 4577)32,289.98 (4,567.73) 27,722.26 7760)(,7.9 - (7,776.09) (7,776.09) 7141 17,164.14 - 17,164.14 ,8.62658 - 2,685.86 2,685.86 2,102.49 ,8.6-6,987.56 - 6,987.56 Capital 265.52 1.9(.8 114.50 (0.08) 114.39 2.7 237)262.37 (283.74) (21.37) net of Specifi of net Exposures, Provisions Reconciling Reconciling 2014 29,488.30 31,985.95 2,270.29 227.36 Items c Covered byCRM Covered Exposures not not Exposures Statements 26,835.85 29,102.06 Financial Financial 2,027.33 Audited Audited 238.88 79 Annual Report 2015
Credit Credit Equivalent Exposures not Covered by CRM - Notional Notional Principal c 120,816.41 - Credit Credit Provisions Exposures, Exposures, net of Specifi Equivalent - Notional PrincipalNotional Equivalent Credit Notional Notional Principal Exposures not Covered by CRM - Credit Credit c Consolidated Parent Equivalent Provisions Exposures, Exposures, net of Specifi Notional Notional Principal Consolidated Parent 2015 2014 35,972.60 582.80 35,972.60 582.80 Credit Credit Equivalent Notional PrincipalNotional Equivalent Credit Consolidated Parent Consolidated Parent 8,780.79 1,756.16 4,168.27 833.65 8,452.35 1,690.47 5,201.96 1,040.39 Notional Notional Principal 18,642.19 9,321.10 18,312.08 9,156.04 17,876.53 8,938.26 17,562.68 8,781.34 ed as Loans 1,367.14 1,367.14 1,021.59 1,021.59 161,587.22 11,077.26 152,594.21 9,989.70 152,580.04 10,628.74 143,581.05 9,821.73 134,164.24 - 130,113.86 - 126,251.16 - On-Balance Sheet Assets Total On-Balance Sheet Assets 461,423.62 443,293.07 395,607.91 381,825.88 Standardized Approach Standardized Credit Equivalent Amount Equivalent Credit Total Notional Principal and Credit Equivalent Amount Equivalent Credit contingencies arising from movement of goods be unconditionally cancelled at any time by the bank notice) prior without Off-balance Sheet Assets Total Notional Principal and Cash on HandChecks and Other Cash ItemsDue from BSPDue from Other Banks FVPL at Assets Financial Available-for-Sale Financial AssetsHeld-to-Maturity Financial AssetsUnquoted Debt Securities Classifi Loans and ReceivablesLoans and Receivables arising from Repurchase AgreementsSales Contract ReceivablesReal and Other Properties AcquiredOther Assets 119.20 - 38,551.58 10,707.42 119.20 17,553.19 12,382.49 3,927.24 37,678.28 67,207.59 10,707.42 17,553.19 12,382.49 3,918.50 111.71 37,439.35 67,207.59 9,267.54 15,836.70 292,638.78 3,361.29 11,615.19 36,566.05 3,927.24 60,285.41 1,229.79 111.71 275,390.26 15,836.70 9,267.54 11,615.19 3,361.29 60,285.41 3,918.50 247,720.38 1,229.79 234,820.38 987.59 12,377.92 342.55 987.59 12,377.92 342.55 7,052.65 7,052.65 Equity Contracts---- Derivatives---- Interest Rate ContractsExchange Rate ContractsEquity Credit 6,950.00 29,022.60 551.18 31.62 29,022.60 6,950.00 551.18 31.62 Direct Credit Substitutes------Credit Direct Transaction-related Trade-related contingencies Other commitments (which can December 2014 December December 2015 December Credit equivalent counterparty amount for credit risk in the trading book, down by type broken of exposures (in PhP million): Credit equivalent off-balance amount for down by type broken items, sheet of exposures (in PhP million): 80 Annual Report 2015 December 2014 December 2015 million): PhP (in ofexposures broken bytype down book, inthebanking risk credit for counterparty CRM after Exposures Net deducted from capital (in PhP million): PhP (in from capital deducted are that buckets, aswellthose risk ofexposures, broken bytype Total mitigation, down risk after exposure credit ofGovernment Securities /Pledge Assignment ofnon-resident deposit FCDU vs. • Holdout ofresident deposit FCDU vs. • Holdout substitute /Deposit Pesodeposit vs. • Holdout • • ROP guarantees • ROP Report: 2015 CAR are intheDecember used mitigants risk credit following warrants The December 2014 0%adAoe28982 0110 8.529298 3,3.59959 8.5247,759.78 180.55 9,945.98 237,633.25 289,289.86 180.55 10,111.03 278,998.27 100% and Above neetRt otat 4700 11 ,0.0 31.12 724.19 4,700.00 45,654.80 - - 31.12 724.19 45,654.80 4,700.00 Derivatives Credit Contracts Equity Contracts Rate Exchange Contracts Rate Interest Repo-Style Transactions 4,664.53 393.49 4,664.53 393.49 393.49 4,664.53 393.49 - 4,664.53 Transactions Repo-Style Transactions Derivative eoSyeTascin 3002 ,6.91,2.71,967.19 13,020.27 1,967.19 - 13,020.27 Transactions Repo-Style Transactions Derivative Weight Band Weight Total Fair Value/Carrying Amount Amount Value/Carrying Fair Total Total Fair Value/Carrying Amount Amount Value/Carrying Fair Total eo 0%20523 6.22394 2,3.113153 37 ,6.3195,588.52 2,369.43 43.72 193,175.37 223,838.01 2,369.43 966.22 220,502.35 Below 100% and Net Exposures after CRM after Exposures Net and and Net Exposures after CRM after Exposures Net and Total Notional Principal and and Principal Notional Total oa 9,0.21,7.62599 1,2.740886 ,8.02599 443,348.31 2,549.99 9,989.70 430,808.62 513,127.87 2,549.99 11,077.26 499,500.62 Total Credit Equivalent Amount Standardized Approach Standardized Approach Standardized Approach On-balance On-balance sheet Off-balance osldtdParent Company Consolidated he onepryTotal Counterparty sheet oinlPicplCredit Equivalent Notional Principal Carrying Amount Carrying Amount Fair Value/ Value/ Fair Fair Value/ Value/ Fair 50,354.80 755.31 50,354.80 755.31 755.31 50,354.80 755.31 50,354.80 3002 ,6.91,2.71,967.19 13,020.27 1,967.19 13,020.27 4,664.53 393.49 4,664.53 393.49 393.49 4,664.53 393.49 4,664.53 osldtdParent Consolidated osldtdParent Consolidated osldtdParent Consolidated - - - - Net Exposures Exposures Net Net Exposures Exposures Net 2015 after CRM after after CRM after On-balance On-balance sheet - - - - oinlPicplCredit Equivalent Notional Principal Carrying Amount Carrying Amount Off-balance Fair Value/ Value/ Fair Fair Value/ Value/ Fair he onepryTotal Counterparty sheet - - - - Net Exposures Exposures Net Net Exposures Exposures Net after CRM after after CRM after
81 Annual Report 2015 113.20 0.87 the billion for Counterparty Total Counterparty Total - sheet Counterparty Total sheet sheet Off-balance Off-balance Off-balance Off-balance Off-balance Off-balance sheet sheet sheet 1.86 billion and Foreign Exposures amounting to On-balance On-balance On-balance 2014 2014 2015 582.00 113.20 - 1.40 billion and Foreign Exposures P amounting to 2.77 billion for parent company billion parent 2.77 for and consolidated basis, This respectively. is Counterparty Total Counterparty Total - sheet Counterparty Total sheet sheet Consolidated Company Parent Consolidated Company Parent Consolidated Company Parent Off-balance Off-balance 2.27 billion and P Off-balance Off-balance Off-balance Off-balance sheet sheet sheet On-balance On-balance On-balance Total 443,293.07 10,628.74 1,148.79 455,070.60 381,825.88 9,821.73 1,148.79 392,796.40 Total 308,993.05 9,920.29 694.27 319,507.80 258,128.24 9,763.37 694.27 268,358.55 Total 337,438.81 10,119.78 1,081.20 348,149.25 284,450.60 9,954.72 1,081.20 249,883.00 Market Risk-Weighted Assets Philratings Below 100% 180,932.75 723.04 833.06 182,488.84 160,073.15 72.96 833.06 160,979.16 Below 100% 42,493.94 14.59 378.54 42,887.08 34,942.11 14.59 378.54 35,335.24 Below 100%Below 54,350.83 8.74 900.65 55,260.22 45,237.43 8.74 900.65 46,146.81 For PHP-denominated debts of rated domestic entities Excess GLLPExcess (99.81) (227.33) Excess GLLPExcess (490.54) (603.52) Weight Band Weight Band Weight Band Fitch 0.91 billion on a consolidated basis. Moody’s Covered by CRM 582.00 - Covered by CRM76.21--76.2171.18--71.18 by Covered 100% and Above 262,360.32 9,905.70 315.73 272,581.76 221,752.73 9,748.77 315.73 231,817.24 100% and Above 265,917.10 9,905.70 315.73 276,138.54 223,072.93 9,748.77 315.73 233,137.44 100% and Above 283,011.77 10,111.03 180.55 293,303.36 239,142.00 9,945.98 180.55 249,268.53 Standard & Poor (S&P) P The Standardized Approach is used in China Bank’s risk-weighted assets. market The risk-weighted of the asset market total P is 2015 December of as Bank For all rated credit exposures regardless of currency The creditratings giventhe following by rating agencies determine the credit used to were risk of On-balance weight sheet, Off-balance sheet, and Counterparty exposures: Total credit down risk-weighted assets, by type broken Total exposures of (in PhP million): composed of Interest Rate exposures amounting to P parent bank,parent while it is composed exposures Rate P amounting to of Interest 82 Annual Report 2015 risk-weighted assets isP assets risk-weighted USD IRR Exposures IRR USD PhP IRR Exposures IRR PhP across the PhP and USD yield curves. yield USD and thePhP across change adverse interest in annualized of a 100bps income reduction are theapproximate below inthetable Provided sensitive. fl by interest date for affected rate repricing movements its isassumed on loans Bank’s The interestthe Bank’s earnings. interest on ofadverse rate to change isused determine theeffects method (EaR) Internally,liabilities. theEarnings-at-Risk The Bank’s interest book thebanking in risk rate interest of measurement Internal rate risk (IRR) originates from its holdings of interest rate sensitive assets and interest rate sensitive operational risk-weighted assets as of December theBank’s aparent basis, On Bank. ofChina assets risk-weighted 2015 to operational isused determine theequivalent BIA The is P Assets Risk-Weighted Operational marketing and even and practices. sales its cases, legal outstanding services, and allproducts oftheunits, capabilities from operating core ofthebusiness cover allaspects and to management reported results areevents. periodically These processe our in failures material prevent to management by upon acte be can trends which and drivers, loss areas, risk high to identify management allow risk further (KRI) Indicators Key Risk of themonitoring and reports loss ofhistorical theanalysis (RCSA), Tools Self-Assessment Controls and astheRisks such provides a capital buffer of as much asP ofasmuch buffer acapital provides exercise. theBIA analysis to cover adequate from theexposure scenario Infact, ismore than our which risk for operational ofP theamount allocated theBank submission, the2016 For ICAAP incidents. major and conditions operating adverse from very arising to cover losses estimated isenough (BIA) Approach requirement Indicator theBasic using analysis exercise isprofi oftheBank theexposure risk, operational For as part of the internal Risks andOther Legal, Operational, capital adequacy assessment process (ICAAP) to validate if the computed capital P Total Capital Charge Adjusted Capital Charge Capital Adjusted oeg xhneEpsrs 21 2014 2,388.77 542.55 2,655.15 Parent Company Consolidated 542.55 Parent Company 2,273.60 Consolidated 868.27 2015 2,769.51 913.40 Total Market Risk-Weighted Assets Assets Risk-Weighted Market Subtotal Charge Capital Adjusted Total Capital Charge Foreign Exchange Exposures Risk Market General Specifi Mn) PhP (in Exposures Rate Interest uttlMre ikWihe ses1861 ,0.32126 1,846.21 2,112.60 1,405.33 1,856.11 Assets Risk-Weighted Market Subtotal oating rates and on its maturity for fi maturity its rates on and oating 20.27 billion while on a consolidated basis, the Bank’s operational risk-weighted assets isP assets risk-weighted operational theBank’s basis, aconsolidated on while billion 20.27 USD PHP c Risk Earnings-at-Risk nPPMlin2015 Million PhP in 25.91 billion. On a parent basis, the Bank’s operational risk-weighted assets as of December 2014 is asofDecember assets risk-weighted operational theBank’s aparent basis, On billion. 25.91 xed rates. Demand and savings deposits, on the other hand, is generally not interest isgenerally rate theother on hand, deposits, savings and xed rates. Demand 2.21 billion. 2.21 2015 2014 2015 (577) (55) osldtdPrn opn osldtdParent Company Consolidated Parent Company Consolidated led using a number of methodologies which also include a scenario a scenario alsoinclude which of methodologies anumber using led osldtdParent Company Consolidated 22.70 billion while on a consolidated basis, the Bank’s operational operational theBank’s basis, aconsolidated on 22.70 while billion 4.9124 6.1 147.69 169.01 112.43 148.49 185.61 140.53 211.26 184.62 184.62 211.26 140.53 185.61 73.07 69.46 43.40 43.40 43.40 43.40 69.46 73.07 91.34 86.83 54.26 54.26 54.26 54.26 86.83 91.34 28 65 40 31.91 34.06 36.50 42.80 65 81 43 19.56 24.31 38.15 56.51 91 77 1.496.22 110.64 37.78 49.18 s, people, systems, and resiliency measures against external external systems, measures against resiliency and people, s, 2014 (901) (50) 2015 (664) 21.02 billion. (47) 2.59 billion as2.59 capital 2014 (734) (51) d 83 Annual Report 2015
n. ns, l. In The ated oard oard cant fi toring d upon ce units ce ds for the discussed ndings and issues noted by rmed the independence and ndings, including updates on ndings, including updates ndings and acceptance of risk, and internal and external and internal audits of nancial statements before submission nancial statements before audit. It ensures that the Bank’s systemsaudit. It ensures Bank’s that the and nancial statements, adjustments resulting from the from nancial statements, adjustments resulting nancial statements. including reporting, monitoring compliance with laws, regulatio oversight, Audit Committee the primarily is responsible moni for cers to attend meetings to enable the further understanding of issues cers to attend meetings to enable nancial reporting, internalcontrols, cient. cient. ciencies and weaknesses. nancial reporting, and internal and external nancial statements of the Bank and subsidiaries present fairly, in all material respects, the in all material respects, fairly, Bank and subsidiaries present nancial statements of the Report of the Audit Committee of the Audit Report cant control defi cant control ciency and effectiveness of operations, and safeguarding of assets. The are full terms of reference and ethics, effi
Committee’s oversight function Committee’s considers fi the overall nancial position of the group and of the parent bank, the Committee recommended to the Board of Directors that the audited of Directors to the Board bank, the Committee recommended and of the parent nancial position of the group included and/or incorporated in the Annual Report for the year ended schedules be approved, nancial statements and related have been taken to address signifi have been taken to address submitted by the external auditors in connection with their audit of the fi After determining that the audited fi fi fi December 31, 2015. Internal and external of the internal effectiveness audit function. It The Committee assessed the performance of the Chief Audit Executive and the audit and confi how the internal standards, reviewed audit function was performing against the relevant of the Bank, and their review of other audit projects including the effectiveness of information technology security and contro of information technology the effectiveness including of other audit projects of the Bank, and their review its functions, it invited offi discharge effectively more to order to the fi responses management’s ones, considered relevant and gathering of immediate feedback on actions to the audit, and determined that appropriate any outstanding issues relating administrative case management, monitored Financial reporting and discussed with management and external auditors the annual fi The Committee reviewed and rel and interpretations standards focusing particularly on any change/s in accounting policies and practices, to the Board, of fi of estimates and assumptions used in the preparation impact, reasonableness audit, going concern It also discussed the management letter and compliance with accounting and auditing standards. assumption, objectivity of the internal including their compliance with the Institute of Internal auditors, Auditors’ International Standar and acte Practice of Internal and Code of Ethics. It reviewed Professional Auditing (IIA-ISPPIA), other supplemental standards, it Every semester, objectives. conformity with the Bank’s plan, scope and budget after ensuring their Internal Audit Division’s the accomplishments versus plan and budget. Internal control the audit fi of internal the Committee reviewed review control, Understanding the scope of auditor’s Chief Audit Executive Marilyn G. Yuchenkang and her team during their regular and special audit of branches and Head Offi and special and her team during their regular Chief Audit Executive Marilyn G. Yuchenkang The Authority and Composition As a subset Board of the of Directors in providing independent the Bank during 2015 to be to adequate, effective and effi 2015 the Bank during and reviewing control framework, internal fi processes are designed provide to reasonable in areas assurance internal policies Three non-executive directors comprise the Audit Committee. Two of the members are independent directors, including the Chairma independent directors, of the members are the Audit Committee. Two comprise non-executive directors Three available on the Bank’s corporate governance website, www.chinabank.ph. corporate www.chinabank.ph. available governance on website, the Bank’s Conduct of Business in 2015 period are for the covered 31, 2015. The main activities conducted 12 times during the year ended December The Committee met set out below. To further enhance the objective of the Committee in the Bank’s governance, risk management and control processes, which adds processes, governance, risk management and control further enhance the objective of the Committee in the Bank’s To of signi (a) guidelines for reporting to put in place additional Committee endeavored value to the overall Bank operations, the audit issues, escalation of un-responded, unresolved, long outstanding and disputed audit issues or fi long unresolved, audit issues, escalation of un-responded, and updated its also revised The Committee management policy. and (c) records (b) framework in handling fraud investigation, of audit processes. changes and rationalization incorporate regulatory of the audit manual to the revision charter and approved basis. for information on a regular matters taken up by the Committee, including the results of the Bangko Sentral ng Pilipinas examination, were elevated to the B examination, were of the Bangko Sentral ng Pilipinas the results matters taken up by the Committee, including 84 Annual Report 2015 himn ebrMember DY TIONG Member T. JOAQUIN DEE Chairman YAO S. ALBERTO Makati City, March 2,2016. the Committee. its members,andwithglobalstandards andpractices,themembersconductedself-assessmentofperformanceeffectiveness of self-assessment Consistent withtheguidelinesofSecuritiesandExchangeCommissionforassessmentperformancecommittee and Committee Audit and ExchangeCommission,and/orBangkoSentralngPilipinas,theirsignifi Revenue,Securiti auditors,newissuancesbytheBureau ofInternal andexternal The Committeealsodiscussedwiththeinternal ensued regarding auditor’s theexternal annualauditplan,andtheresults oftheauditversusplan. &YoungErnst astheBank’s auditorfor2015.Asidefrom external approving thefeesforauditor’s engagement,discussions auditor,independence oftheexternal andendorsedthere-election/re-appointment ofSyCipGorres Velayo &Co.(SGVCo.)/ respectauditors,theCommitteereviewed totheexternal andmonitoredWith thequalifi the qualityofauditservices. professional auditing;includingitscurrent practiceofinternal maturitystateandtherecommendations thatwouldfurtherimp Audit Divisiongenerallyconformstothedefi auditactivities.TheCommitteetooknoteoftheresultswith thestandards forthequalityassessmentofinternal thatInt qualifi During theyear, theCommitteealsoreceived validationontheeffectivenessauditfunctionwhenanindependentand ofinternal serviceproviderqualityassessmentreviewAuditDivision,inaccordanceed external conductedan oftheInternal standards forthe auditing,thecodeofethics,andinternational nition ofinternal canceorimpactontheoperationsofBank. cations, performance,competenceand ernal ernal rove also es
85 Annual Report 2015
d nancial nancial nancial statements that O E C
&
t nancial and submits statements the stockholders. the same to n de i es Pr Ricardo R. Chua me their Social exhibitingants to Security Nos. System as follows: S. S. S. } Hans T. Sy Hans T. Ricardo R. Chua Carlos M. Borromeo day of March affi 2016, nancial statements for the years ended December 31, 2015 and 2014, including the additional components components including the additional and 2014, 2015 December 31, ended years statements the nancial for th Name SSS Nos. Nos. SSS Name
Doc. No.: No.: Doc. No.: Page 47 No.: Book 11 Series of: 2 2016 Sy Hans T. Ricardo R. Chua Carlos M. Borromeo 03-88602188 03-24163898 03-43011743 The Board of Directors and approves reviews the consolidated fi are free from material misstatement, whether due to fraud or error. selecting and applying appropriate accounting policies, and and applying appropriate accounting selecting misstatement,are free from material to fraud or error. whether due estimates that are reasonable in the circumstances.making accounting SyCip & Co., the independent Gorres Velayo auditors appointed by the stockholders, has the consolidated examined fi The Management of China Banking Corporation (the Bank) is responsible for the preparation and fair presentation of the preparation and fair the for is responsible (the Bank) Corporation of China Banking Management The fi consolidated responsibility and includes designing This Standards. Financial Reporting with Philippine therein, in accordance attached presentation of the consolidated fi to the preparation and fair controls relevant implementing internal Statement of Management’s Responsibility for Financial Statements for Financial Responsibility of Management’s Statement Republic of the Philippines City of Makati Chairman Board of the President & CEO Senior Vice President and CFO statements of the Bankstatements accordance in with Philippine Standards on Auditing, and in its report the stockholders, to has expresse its opinion on the fairness of presentation upon completion of such examination. Signed this 4 86 Annual Report 2015 March 2, 2016 2, March 17, 2018 16, March March until valid 2015, City Makati 2016, 4, January 5321647, No. PTR 08-001998-53-2015, No. Accreditation BIR 2016 30, April until 14, valid 2013, February Identifi Tax A), (Group 0115-AR-3 No. Accreditation SEC CPA Certifi Partner Salas Lee Vicky &CO. VELAYO GORRES SYCIP In ouropinion,theinformation isfairlyinallmaterial respectsinrelationtothebasicfi stated China Banking Corporation. The information has beensubjectedtotheauditingproceduresappliedinourauditofbasicfi of Internal information requiredunder Our auditswere conductedfor thepurposeofforming anopiniononthebasicfi 15-2010 Regulations Revenue Under Required Information Supplementary the on Report years intheperiodendedDecember31,2015 inaccordancewithPhilippineFinancialReporting Standards. Group andoftheParent Company asatDecember31,2015 and2014, andtheirfi In ouropinion,theconsolidatedandparentcompany fi Opinion We believe thattheauditevidence we have issuffi obtained fi policies usedandthereasonablenessofaccountingestimatesmadeby management,aswell as evaluating theoverall presentation of expressing anopinionontheeffectiveness oftheentity’s internalcontrol. An auditalsoincludesevaluating theappropri of the fi presentation due tofraudorerror. Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevant totheentity’s prepa selected dependontheauditor’s ofthefi judgment,includingtheassessmentofrisksmaterialmisstatement An auditinvolves performingauditevidence procedurestoobtain about theamountsanddisclosuresinfi reasonable assuranceaboutwhetherthefi on Philippine Standards Auditing. Those requirethatwe standards complywith ethicalrequirementsandplanperform theau istoexpressOur responsibility anopiniononthesefi Responsibility Auditors’ Statements whetherduetofraudorerror.that arefreefrommaterialmisstatement, Financial Reporting andfor Standards, such toenablethepreparationoffi internalcontrolasmanagementdeterminesisnecessary the for Management isresponsiblefor thepreparationandfairofthesefi presentation Responsibility Management’s ofsignifi a summary ofchanges ofcashfl income, statements andstatements inequity sheets asofDecember31,2015 and2014, ofcomprehens andtheconsolidatedparentcompanyofincome,statements statements company fi We have auditedtheaccompanying consolidatedfi Statements Financial the on Report Makati City Street Villar corner Roxas de Paseo 8745 China Banking Corporation ofDirectors Board the and Stockholders The nancialstatements. nancial statements ofChinaBanking nancial statements Corporation(theParent Company), which comprisetheconsolidatedandparentcompany balan cation No. 129-434-735 No. cation cate No. 86838 No. cate Revenue andisnot arequiredpartofthebasicfi cant accounting policies and other explanatory information. cantaccountingpoliciesandotherexplanatory nancial statements in order to design audit procedures that are appropriate in the circumstances, butnotfor inordertodesignauditproceduresthatareappropriatethecircumstances, purpose nancial statements Revenue Regulation 15-2010 inNote36to thefi Independent Auditors’Report nancial statements arefreefrommaterialmisstatement. nancialstatements nancial statements ofChinaBanking nancial statements CorporationandSubsidiaries(theGroup)theparent basedonouraudits. nancial statements We conductedourauditsinaccordancewith nancial statements presentfairly,nancial statements inallmaterialrespects,thefi cientandappropriatetoprovide abasisfor ourauditopinion. Suchnancial statements. informationofthemanagement istheresponsibility ows for each ofthethreeyears intheperiodendedDecember31,2015, and nancial statements ispresentedfornancial statements purposesoffi nancial performance andtheircashfl inaccordancewithPhilippineFinancial nancial statements takenasawhole. nancial statements The supplementary nancial statements takenasawhole. nancialstatements nancial statements. nancial statements. The procedures nancial statements, whether nancial statements, ows for each ofthethree nancial positionofthe ateness ofaccounting ling withtheBureau nancial statements. nancial statements statements nancial ration andfair dit to obtain dit toobtain ofthe ive ce
87 Annual Report 2015 9 2014 1,397 (21,367) 101,610 822,179 283,741 114,499 222,841 166,273 842,367 223,600 455,000 800,006 2,182,91 5,177,601 1,312,475 4,748,199 1,910,677 9,295,130 8,012,435 1,901,363 6,016,950 3,639,729 6,987,564 17,164,143 11,353,788 37,075,238 15,836,701 P 31,489,977 56,818,563 56,818,563 88,942,591 86,798,098 60,543,867 407,501,379 407,501,379 245,257,221 341,084,635 350,682,816 P 165,343,946 P P – – – 2015 66,373 (36,281) 741,479 827,231 293,771 345,312 222,841 166,273 762,808 (979,614) 1,369,147 5,465,417 4,997,202 6,987,564 2,201,247 3,445,764 1,899,862 1,260,995 3,949,430 10,019,471 77,003,616 18,537,285 46,834,199 59,849,612 59,849,612 10,052,891 34,219,656 13,945,645 19,200,544 18,422,650 104,135,171 457,735,601 457,735,601 373,603,416 397,885,989 103,024,840 P 259,645,008 166,443,405 P P P – – – – 8 86 2014 December 31 2,053 10,944 (20,392) 199,151 101,610 122,920 839,748 848,6 223,600 534,881 800,006 1,188,762 3,677,100 1,630,74 1,241,938 1,221,395 6,987,564 6,250,652 2,236,981 5,975,480 6,320,580 3,635,809 5,449,530 8,440,699 17,164,143 97,703,744 31,312,038 17,552,823 67,451,648 12,109,344 10,734,059 56,567,483 38,476,852 95,526,360 56,565,430 471,220,813 471,220,813 P 290,418,730 414,653,330 206,071,440 P 399,301,544 P P Note 10) Note (As restated - – 2015 Consolidated Company Parent 66,373 (34,634) 183,155 839,748 373,591 828,406 1,116,147 4,706,121 6,354,119 5,975,197 5,398,139 2,621,737 1,381,280 6,987,564 1,584,274 3,972,308 6,244,593 (1,126,080) 11,377,101 16,136,147 19,085,180 59,170,904 59,176,444 18,537,285 86,318,501 33,800,748 21,243,492 48,829,233 113,511,283 211,708,080 309,761,777 114,046,323 467,656,059 526,826,963 526,826,963 439,265,686 P P P – – (Amounts in Thousands) (Amounts Balance Sheets Balance (Note 8) (Note (Note 11) t or Loss (Note 18) (Notes 7 and 16) t asset or liability (Note 23) (Note 8) (Note (Note 8) (Note (Note 15) (Note (Note 10) (Note ned benefi ned (Note 10) (Note (Note 26) (Note 7) (Note (Notes 9 and 28) (Note 12) (Note 24) (Note (Note 26) (Note 17) (Note (Notes and 16 28) (Notes and 10 13) (Note 19) (Note (Note 17) (Note (Note 14) (Notes and 10 13) Liabilities
nancial assets (Note 8) fi Demand See accompanying Notes to Financial Statements. Due from Bangko Sentral ngPilipinas EQUITY AND LIABILITIES Liabilities Deposit Manager’s Checks Manager’s Income Payable Tax Accrued Interest and Other Expenses 1,456,498 375,780 Savings Intangible Assets Assets Intangible Time Bills Payable Derivative Liabilities Liabilities Derivative Net unrealized gains (losses) on available-for-sale Remeasurement gain on defi Surplus reserves (Notes 22 and 27) Surplus (Notes 22 and 27) Capital paid in excess of par value (Note 22) Equity Equity Attributable to Equity Holders of the Parent Company Capital stock (Note 22) ASSETS Cash and Other CashItems P Available-for-Sale Financial Assets Financial Available-for-Sale Due from Other Banks Receivables Loans Interbank Financial Assets at Fair Value through Profi – Held-to-Maturity Financial Assets Receivables and Loans Accrued Interest Receivable Investment in Subsidiaries Subsidiaries in Investment Goodwill Assets Other Deferred Liabilities Tax Cumulative translation adjustment Non-controlling Interest (5,540) Investment Properties Investment Deferred Assets Tax Bank Premises, Furniture, Fixtures and Equipment Investment in Associates Associates in Investment Subordinated Debt Debt Subordinated Other Liabilities Liabilities Other 88 Annual Report 2015 Loans and receivables (Notes 9 and 28) 9and (Notes receivables and Loans INTEREST INCOME * See accompanying Notes to Financial Statements. Financial to Notes accompanying See E NOEP NET INCOME TAX INCOME FOR PROVISION NOEBFR NOETX6,412,545 13,159,781 INCOME BEFORE INCOME TAX EXPENSES TOTAL OPERATING Miscellaneous (Notes 20 and 28) and 20 (Notes Miscellaneous and maintenance Repairs postage and supplies Stationery, related other and marketing fees, Professional recreation and amusement Entertainment, Transportation and traveling Depreciation and amortization Provision for impairment and credit losses losses credit and impairment for Provision Basic/Diluted Earnings Per Share Share Per Earnings Basic/Diluted Non-controlling Non-controlling interest Equity holders of the Parent Company Company Parent ofthe holders Equity to: Attributable Insurance licenses Taxes and 10) (Note associate ofan losses net in Share 15,085,184 dacion and foreclosure asset on Gain 27) (Note income Trust fee 24) (Note -net (loss) gain exchange Foreign properties ofinvestment sale on Gain 8and (Notes -net gain securities and Trading commissions and fees charges, Service NET INTEREST INCOME 17) (Note borrowings other and payable Bills 28) 16 and (Notes liabilities Deposit INTEREST EXPENSE and Pilipinas ng Sentral Bangko from Due 8) (Note investments and Trading Occupancy cost (Notes 25 and 28) and 25 (Notes cost Occupancy OA PRTN NOE19,572,326 benefi fringe and Compensation INCOME TOTAL OPERATING 28) and 20 (Notes Miscellaneous Restated to show the effects of stock dividends distributed in 2015 (Note 22). 2015 (Note in distributed dividends ofstock effects the toshow Restated services (Notes 11, 12 13) and (Note 15) transactions (Note 12) (Note transactions 20) (Note 20) 7) (Note banks other (Notes 23 and 28) and 23 (Notes (Note 31) ts (Note 26) (Note 31) P P P P 15,900,727 19,317,334 4,008,288 5,606,666 4,674,469 5,602,576 5,602,576 1,723,277 1,834,318 4,232,150 1,001,934 3,100,802 Statements ofIncome 1,587,118 966,855 466,834 809,969 223,862 276,240 276,809 330,056 160,902 990,788 966,574 245,760 315,805 375,754 274,978 979,412 311,587 241,151 (37,893) (4,090) 2015 3.02 (Amounts inThousands) (As restated - restated (As P osldtdParent Company Consolidated P 8880415,096,583 18,848,024 408779,935,991 14,088,747 P P 46421P 14,674,211 8371914,081,153 18,397,139 P 218129,321,600 12,168,112 ,0,9 4,145,162 4,308,392 ,8,6 1,085,975 1,588,064 ,6,0 1,229,980 1,669,408 ,6,2 674,536 1,564,927 ,7,1 5,774,983 6,679,912 ,6,0 1,156,460 1,561,807 ,2,8 3,227,341 3,021,786 ,3,3 1,371,299 1,737,435 ,2,9 689,739 1,021,799 ,1,8 P 5,114,985 P 5,114,985 ,1,1 4,047,245 4,016,718 ,7,7 3,112,589 4,170,574 ,1,3 P 5,117,832 2,4 (89,663) 329,944 9,2 690,030 898,228 4,0 414,336 440,901 3,6 1,904,885 535,263 5,6 462,743 355,065 8,8 164,317 188,589 2,3 221,736 323,537 9,0 156,533 195,209 3,5 219,471 138,557 7,5 344,080 371,653 5,8 420,721 251,489 2,1 174,075 229,015 2,6 752,886 921,764 9,7 97,917 291,674 oe1)2013 Note 10) 0,4 481,737 701,142 287 (2,811) (2,847) .6 P 2.76* 2014 (912) – (912) Years Ended December 31 December Ended Years 10,372,075 5,103,258 5,100,447 5,100,447 2.75* – P P 15,454,535 12,324,959 12,389,089 16,279,396 5,846,460 3,065,446 3,532,596 9,604,866 1,252,878 2,946,914 6,674,530 1,207,677 1,456,140 2,881,166 353,249 459,996 222,276 184,280 676,286 156,289 102,882 182,662 272,251 150,956 891,953 306,541 487,485 828,070 800,742 827,026 187,773 150,177 2015 – P 4626913,295,952 14,632,629 5342614,140,639 15,314,296 P 156169,460,484 11,586,106 12546P 11,295,416 ,0,9 3,737,550 2,904,698 ,2,0 5,834,414 6,523,404 ,4,2 3,835,468 3,046,523 ,0,3 649,928 1,408,832 ,9,9 8,306,225 8,790,892 ,0,5 1,294,912 1,406,652 ,2,4 1,004,074 1,220,649 ,0,5 1,059,665 1,206,551 ,3,1 2,762,462 3,030,719 ,7,2 3,158,296 2,872,124 ,1,2 1,082,833 1,017,928 ,1,7 P 5,114,572 5,9 1,614,808 458,896 3,4 (96,190) 335,848 6,8 408,150 465,089 3,7 595,747 630,577 8,4 321,264 285,042 6,3 157,803 165,534 0,2 278,541 100,920 4,7 416,287 249,371 0,4 190,674 207,048 2,1 680,378 725,313 6,9 467,217 363,192 3,5 162,285 131,855 5,2 664,179 751,526 4,5 138,315 149,155 4,2 97,918 141,825 236191,126 82,306 042013 2014 9,729,506 5,184,486 89 Annual Report 2015 4,297,737 5,184,486 2014 2013 (87,715) 131,858 730,007 297,493 (212,263) (886,749) (312,902) 400,214 (541,653) (1,716,314) 5,114,572 P 4,902,309 P P P – – 2015 10,030 (14,914) (464,471) (629,642) 4,747,463 5,846,460 (1,098,997) P P – 4,219,146 4,219,146 5,100,447 4,222,468 Years Ended December 31 2014 (5,970)– (2,809) (3,322) (86,686) 131,859 Note 10)Note 2013 752,517 565,027 (290,087) (881,301) (405,854) 428,205 (544,094) (2,006,392) 5,114,985 P 4,827,707 P 4,824,898 P 4,824,898 P P P P P Consolidated Company Parent (As restated - (Amounts in Thousands) (Amounts 2015 (5,072) (16,734) (14,242) (487,124) (123,397) (638,723) 4,327,428 5,602,576 4,322,356 4,322,356 P P t Statements of Comprehensive Income of Comprehensive Statements t or loss in ned benefi ned t or loss in t or loss (Note 20) nancial assets of an tax nancial assets: assets: nancial available-for-sale fi associate (Note 10) fi subsequent periods: subsequent periods: THE YEARTHE P YEAR, NET OF TAX (1,280,220) asset or liability, net of tax (Note 23) Share in changes in net unrealized gain on Cumulative translationadjustment TOTAL COMPREHENSIVE INCOME FOR FOR INCOME COMPREHENSIVE TOTAL Gains taken to profi OTHER COMPREHENSIVE LOSS FOR THE NET INCOMENET P Total comprehensiveTotal income attributable to: Equity holders of the Parent Company OTHER COMPREHENSIVE INCOME (LOSS) INCOME COMPREHENSIVE OTHER See accompanying Notes to Financial Statements. Remeasurement gain (loss) on defi Fair value gain (loss) for the net year, of Changes in fair value of available-for-sale Items that recycle to profi Items that do not recycle to profi Non-controlling interest Non-controlling 90 Annual Report 2015 aac tJnay1 05a rvosyrpre P reported previously as 1, 2015 January at Balance Balance at December 31, 2013 December at Balance 31, 2014 December at Balance 31, 2015 December at Balance 31, 2013 December at Balance 31, 2014 December at Balance tc iied .0 12148 – – – − 1,271,428 (67,531) − (1,271,428) − -P dividends Cash -8.00% dividends Stock shares ofcommon issuance the on costs Transaction − − − 1,271,428 (67,531) − -P dividends Cash 8.00% - dividends Stock shares ofcommon issuance the on costs Transaction Balance at January 1, 2014 January at Balance 1, 2014 January at Balance tc iied 00% ,9,7 (1,297,874) − (41,629) – 5,103,258 41,629 − – − (24,937) − 5,117,832 − 1,297,874 − 24,937 − − 1, 2015 January at Balance − − − − − − -P dividends Cash -10.00% dividends Stock reserves tosurplus surplus from Transfer interest ofnon-controlling acquisition Additional year the for (loss) income Total comprehensive 1, 2013 January at Balance Issuance of common shares (P reserves tosurplus surplus from Transfer year the for (loss) income Total comprehensive of allocation price purchase the on ofrestatement Effect See accompanying Notes to Financial Statements. Financial to Notes accompanying See Statements. Financial to Notes accompanying See tc iied 00% ,9,7 – 41,629 – – – 24,937 – – 1,297,874 – – – – – – -P dividends Cash -10.00% dividends Stock reserves tosurplus surplus from Transfer year the for (loss) income Total comprehensive 1, 2013 January at Balance Issuance of common shares (P reserves tosurplus surplus from Transfer year the for (loss) income Total comprehensive -P dividends Cash -8.00% dividends Stock reserves tosurplus surplus from Transfer year the for (loss) income Total comprehensive aac tDcme 1 05P 31, 2015 December at Balance aac tJnay1 05 srsae 7141369754800631,312,038 800,006 6,987,564 17,164,143 -P dividends Cash -8.00% dividends Stock reserves tosurplus surplus from Transfer interest ofnon-controlling acquisition Additional year the for (loss) income Total comprehensive restated as 1, 2015, January at Balance Planters Development Bank (Note 10) (Note Bank Development Planters 1.20 (1,557,449) – – per – 1.00 (1,589,272) − share − per − 1.00 share per share 1.20 1.00 per – – – per – 1.00 share per – share – share 95 e hr)1660963350 − − − 6,383,590 1,616,099 share) per 49.50 95 e hr)1660963350 − 6,383,590 1,616,099 share) per 49.50 Statements ofChangesinEquity (Amounts inThousands) (Note Capital Stock 22) −−−(1,716,414) − −−28,400 (28,400) 5,606,666 − − − −−−1,435 − P P P P – – ––27,225 – – 85725P 18,537,285 14,276,616 14,276,616 12,978,742 71413P 17,164,143 17,164,143 ,7,4 − (1,373,142) − − 1,373,142 Capital Stock P P P P P P Par in Paid Capital Excess Value of 18,537,285 14,276,616 14,276,616 12,978,742 17,164,143 17,164,143 ,7,4 –– – 1,373,142 (Note 22) P 6,987,564 ,8,6 P 6,987,564 P 6,987,564 P P P (Note 22) 671,505 671,505 671,505 Reserves Surplus Capital Paid in Paid Capital (Notes 22 and 27) and 22 (Notes P P P 6,987,564 Par Value Par 6,987,564 Excess of 6,987,564 P P P (Note 22) 671,505 671,505 671,505 P P P P 800,006 733,440 775,069 775,069 2,0 P 828,406 0,0 P 800,006 Surplus (Notes 22 and 27) and 22 (Notes (Notes 22 and 27) and 22 (Notes P P P P 29,079,843 29,079,843 26,873,537 33,800,748 31,310,603 31,312,038 P P Reserves P P P P 800,006 733,440 775,069 775,069 Surplus 800,006 827,231 91 Annual Report 2015 59,849,612 56,818,563 56,818,563 42,833,080 45,573,368 45,573,368 P P P P P P 59,170,904 42,738,205 56,567,483 56,566,048 45,399,699 45,399,699 P P P P Total Equity Total 2,053 P 5,540) P 2,053 8,387 4,862 4,862 P P P P (Note 10) (Note 21,367) 65,510) 21,367) 66,348 66,348 36,281) P P P P P P Translation Cumulative AdjustmentEquity Total Non-controlling Interest 59,176,444 (P 42,729,818 56,563,995 P 45,394,837 45,394,837 56,565,430 ned P P P P 283,741 ( 283,741 ( 293,771 ( 196,429 ( 596,643 596,643 (Note 23) (Note P P P P P P t Asset or Benefi Gain on Defi on Gain Remeasurement Liability Liability 65,511) 20,392) P 34,634) P 66,347 66,347 20,392) P P P P 73,855) 73,855) Cumulative Translation Adjustment Total (Note 8) (Note 979,614) 114,499 114,499 P P P P P 1,344,966 P Available-for- Sale Financial Sale ned Assets Net Unrealized Net 199,151 ( 199,151 (P 183,155 (P 177,480 ( 604,715 604,715 Gains (Losses) on (Note 23) (Note P P P P t Asset or Consolidated Remeasurement Defi on Gain Benefi Liability (41,629) – – – – – – – (41,629) (27,225) – – – – – – – (27,225) (24,937) – – – – – – (24,937) Surplus 5,114,572 188,354 (312,902) (87,715) 4,902,309 5,184,486 (1,418,821) 400,214 131,858 4,297,737 5,846,460 (1,094,113) 10,030 (14,914) 4,747,463 (1,716,414) – – – – (1,716,414) (1,716,414) (1,297,874) – – – – (1,297,874) (1,373,142) – – – – – – – (1,373,142) (1,271,428) – – – – – – (1,271,428) (1,557,449) – – – – (1,557,449) (1,557,449) (1,589,272) – – – (1,589,272) (1,589,272) 34,219,656 ( 29,261,042 ( 29,261,042 ( 31,489,977 31,489,977 26,973,508 P P P P P 79,258) 79,258) P (Note 8) (Note 202,178 (405,564) (86,739) 4,827,707 (2,809) 4,824,898 122,920 122,920 P 122,920 199,151 (20,392) 56,565,430 2,053 56,567,483 P P ( ( P P 1,126,080) P 1,360,625 (1,249,000) (15,996) (14,242) 4,327,428 (5,072) 4,322,356 (1,439,883) 427,235 131,858 4,222,468 (3,322) 4,219,146 P (Notes 22 and 27) (P Parent Company Equity Attributable to Equity Holders of the Parent Company Net Unrealized (Losses) Net Gains Financial Available-for- on Sale Assets − – – –− – – –− – – 7,999,689 (67,531) – – – – − − − – – − (1,557,449) − − − − – – − − – – – – – – – (203) (1,557,449) (203) − − − − − 1,435 1,435 − − − (1,716,414) − (1,716,414) −− − − − − − − − − − − − − − − − − − (2,521) (2,521) (1,716,414) – – – (1,589,272) − − − − − − − − (1,589,272) – –– – – − − – − – – – (67,531) – – – (67,531) 7,999,689 (1,589,272) − 7,999,689 92 Annual Report 2015 Gainonsaleofinvestments in mriaino rnato ot 6,5) – (61,855) Manager’s Increase(decrease)inthe Deposit checks liabilities – Other assets Loans and Decrease(increase)inthe Financial receivables assets at Changesinoperatingassetsand FVPL Amortizationoftransactioncosts Trading andsecuritiesgainonavailable- Gainonsaleofinvestment properties Gain on acquisition of additional shares Gainonacquisitionofadditionalshares Share in net losses of an associate Shareinnetlossesofanassociate Net cash generated from (used in) Net cashgeneratedfrom(usedin) Other liabilities Accrued interest and other (Forward) Provision for impairmentandcredit Net cashprovided by (usedin)investing Net cashprovided by (usedin)operating Income taxespaid Gainonassetforeclosure anddacion Unrealized market valuation losson Income before incometax CASH FLOWS FROM OPERATING Depreciation and amortization Depreciationandamortization Adjustments for: Available-for-sale Held-to-maturity fi fi Proceeds fromsale/maturity of: Proceeds fromsaleofinvestment Proceeds fromdisposalofbankpremises, Additions tobankpremises,furniture, CASH FLOWS FROM INVESTING Available-for-sale Held-to-maturity fi fi Purchases of: Proceeds fromsaleofinvestments in Additions investments toequity (Note10) Acquisition throughbusinesscombination operations activities activities ACTIVITIES properties (Note 11) furniture, fi fi ACTIVITIES associates (Note 10) - netofcashacquired(Note10) xtures andequipment(Note11) soits( oe1) 6,5)– (64,557) associates – (Note 10) liabilities: for-sale fi fa soit Nt 0 3327 – (373,297) – of anassociate(Note10) (Note 10) losses (Note 15) transactions (Note12) (Note 24) derivative assetsandliabilities (Notes 11, 12 and13) amounts of: amounts of: xtures andequipment expenses nancialassets(Note20) nancialassets nancialassets nancialassets nancialassets – – – (21,441,441) (14,976,986) (54,192,915) P 39,964,142 28,604,848 43,031,164 28,097,047 (1,493,982) (4,490,149) Statements ofCashFlows 6,412,545 1,070,310 1,137,792 2,477,311 (444,632) (375,754) (638,723) (316,442) (274,978) (507,801) 979,412 463,346 966,574 235,103 567,758 (46,474) 37,893 2015 (As restated - (As restated – (Amounts inThousands) osldtdParent Company Consolidated 2,9,5)(54,203,925) (22,893,153) 2,8,0)57,262,340 (27,386,300) 3,8,8)(31,031,274) (37,385,288) 2,5,0)56,767,133 (27,951,502) P 9506051,992,308 29,570,640 18074(1,639,987) 11,810,734 10395 (1,165,241) (1,063,905) 23789 192,306 (2,397,839) ,9,9 2,206,818 5,793,596 ,4,5 1,183,655 1,449,958 ,7,1 P 6,679,912 ,5,1 – 4,051,917 3505 (462,743) (2,006,392) (355,065) (544,094) 5522 (495,207) (565,202) 6673 – (696,783) 3484 (120,308) (304,814) 1857 (219,471) (138,557) 1931 288,882 (199,381) 6,0 82,290,963 463,406 0,0 10,529 304,304 8,9 – 283,599 8,4 58,684 189,248 0,5 542,687 804,157 4,0 414,336 440,901 2,6 752,886 921,764 oe1)2013 Note 10) 5,9)(877,330) (51,292) 2014 1 – 912 5,774,983 December 31 – – – – – – (15,073,046) (53,870,729) (17,319,190) P 26,563,150 26,148,308 32,518,781 43,647,299 (4,002,521) (1,230,264) (3,081,425) (1,400,741) 2,828,223 1,262,845 6,674,530 (353,249) (629,642) (414,842) (316,442) (150,177) 489,568 571,677 676,286 487,485 327,682 (80,700) (51,480) 2015 – – – – – – 3,2,7)(25,818,526) (35,121,670) 2,7,0)56,838,499 (26,679,109) 2,1,3)(51,487,633) (22,211,530) P 9024049,266,835 29,062,490 2,6,4)56,361,377 (27,166,743) 40920 – (4,089,200) ,5,8 76,757,744 1,252,781 ,2,0 P 6,523,404 ,1,1 (1,530,834) 3,915,610 ,0,8 2,206,818 2,407,081 5163 (1,716,314) (541,653) 7847 205,798 (778,487) 3312 (467,217) (363,192) 6987 172,768 (639,817) 1316 (111,217) (133,146) 8524 (994,536) (895,274) 4764 (477,122) (487,634) 3,7 595,747 630,577 5,1 1,138,047 954,913 0,2 278,541 100,920 2,1 3,716 325,410 6,0 542,737 768,801 8,0)(191,126) (82,306) 5,9)(877,330) (51,292) 1,9 (31,601) 117,691 042013 2014 – – 5,834,414 93 Annual Report 2015 49,461,140 4,007,534 105,929,138 P P 2014 2013 2014 2013 223,600 – 3,221,293 3,214,734 4,335,248 P (7,456,841) (44,688,754) 7,035,251 5,996,786 9,295,130 7,035,251 (1,589,272) (1,557,449) P 15,836,701 23,215,575 75,678,31223,215,575 37,597,455 4,289,620 85,899,298 60,543,867 75,678,312 3,159,848 (20,029,840) 58,045,277 105,929,138 47,883,861 P P 14,523,547 13,283,813 − − 2015 2015 223,600 (5,243,510) 9,295,130 (1,716,414) 11,528,635 18,488,559 20,357,753 77,003,616 10,052,891 15,836,701 60,543,867 85,899,298 19,200,544 3,020,972 P 106,257,051 15,163,965 P P – December 31 December 31 49,461,140 4,314,900 110,135,312 P P 2014 2014 2013 Note 10) 2013 223,600 – (525,000) – – – – 7,932,158– – 7,932,158 – 1,967,586 3,214,734 4,629,728 P 7,281,641 6,160,372 (8,480,028) (44,688,754) (1,589,272) (1,557,449) 17,552,823 23,885,538 P 67,451,648 78,968,133 10,734,059 7,281,641 95,962,130 78,968,133 40,659,683 23,885,538 4,527,377 (14,173,182) 58,341,880 4,304,420 110,135,312 51,793,432 P 18,059,567 14,016,511 P Consolidated Company Parent Consolidated Company Parent – (203) –– (203) restated (As - – 446,000 2015 (2,521) 2015 223,600 9,856,903 (1,188,762) (6,386,489) (1,716,414) 11,377,101 19,151,089 17,552,823 67,451,648 86,318,501 10,734,059 95,962,130 21,243,492 4,240,401 P 118,939,094 18,932,577 P P – – nancing activities (Note 10) shares (Note 22) ACTIVITIES CASH AND CASH EQUIVALENTSAND CASH CASH 22,976,964 BEGINNING OF YEAR BEGINNING OF (Note 7) END OF YEAR (Note 7) Settlement of subordinated debt (Note 17) of subordinated Settlement Interest paid Interest Settlement of bills payable of bills Settlement Net cash provided by fi by Net cash provided Acquisitions of non-controlling interest Acquisitions from issuance of common Proceeds Payments of cash dividends (Note 22) of cash Payments Interest received Interest Proceeds from bills payable Proceeds CASH FLOWS FROM FINANCING FROM FLOWS CASH See accompanying Notes to Financial Statements. OPERATING CASH FLOWS FROM INTEREST NET INCREASE (DECREASE) IN (DECREASE) NET INCREASE CASH AND CASH EQUIVALENTS AT AT EQUIVALENTS AND CASH CASH Cash and other cash items Sentral ng Pilipinas Due from Bangko Due from other banks (Note 7) Interbank loans receivables CASH AND CASH EQUIVALENTS AT AT EQUIVALENTS AND CASH CASH Cash and other cash items Due from Bangko Sentral ng Pilipinas Due from Bangko Due from other banks (Note 7) Interbank loans receivables 94 Annual Report 2015 2. 1. China Bank Savings, Inc. (CBSI) Inc. Savings, Bank China ForexCBC Corporation* (CBC- Center, Inc. Computer and Properties CBC (CIBI) Inc. Brokers, Insurance Chinabank in Note21. of liabilitieswithin12 monthsafter thereportingdate(current) andmorethan 12 monthsafter thereportingdate(non-curren The Groupandthe Parent Company present itsbalancesheetsinorderofliquidity. An analysis regarding recoveryofassetsor Presentation ofFinancialStatements (PFRS).Standards The fi ofCompliance Statement Deposit Unit(FCDU). The fi The fi indicated. fi or loss(FVPL),available-for-sale (AFS)fi The accompanying fi (collectively referred toas “the Group”). The accompanying consolidatedfi Basis ofPreparation SUMMARY OFSIGNIFICANT ACCOUNTING POLICIES The Parent Company’s principalplaceofbusinessisat8745 Paseo deRoxas cor. Villar St.,MakatiCity. dissolution effect to the Parent Company of19.90% and20.01%bodies asofDecember31,2015 and2014, respectively. regulatory The Parent Company hasnoultimateparentcompany. SMInvestments Corporation,itssignifi from clearance awaiting and liquidation of process the In * ** (PDB) Bank Development Planters Subsidiary The Parent Company hasthefollowing subsidiaries: scheduled annualmeetingonMay 5,2016, andthereafter tobesubmitted agencies for evaluation totheregulatory andapproval. July dateofitsextended 20,2020,theexpiry term. The approval shallbesubjecttotheratifi Third Article oftheParent Company’s Articles ofIncorporation,tofurtherextend thecorporatetermfor another50years from on December23,1963, andapproved by theSEConOctober5,1964. OnMarch 2,2016, theBODapproved theamendmentof to extend thecorporatetermofParent Company for another50years oruntilJuly 20,2020, which was confi July 20,1920. OnDecember4,1963, theBoard ofDirectors(BOD)theParent Company approved the Amended Articles ofIncorp The Parent Company acquireditsoriginalCertifi other investmentthroughanetworkof352and314 bankingservices localbranches asofDecember31,2015 and2014, respective loans andtradefi acquired itsuniversal bankinglicensein1991. Itprovidessuch expanded commercialbankingproductsandservices asdeposit China Banking Corporation(theParent Company) isapubliclylistedcommercialbankincorporatedinthePhilippines. The Paren CORPORATE INFORMATION China Bank Capital Corporation (CBCC)*** Corporation Capital Bank China ** Merged with CBSI (Note 10) (Note CBSI with Merged ** arepresentedinPhilippinepeso,andallvaluesnancial statements areroundedtothenearestthousandpesoexcept whenother ***Established in 2015 (Note 10) (Note 2015 in ***Established nancial statements oftheParent nancialstatements Company refl PCCI) oftheGroupandParentnancial statements Company have beenprepared incompliancewithPhilippineFinancialReporting nance, domesticandforeign fundtransfers,products,trust products,foreign treasury exchange, corporatefi nancial statements havenancial statements beenpreparedonahistoricalcostbasisexcept for fi nancial statements oftheseunitsarecombinedafter nancialstatements eliminatinginter-unit accounts. Notes toFinancialStatements includethefi nancial statements nancial assets,andderivative fi cation ofIncorporationissuedby theSecuritiesandExchange Commission(SEC)on ect the accounts maintained intheRegular ecttheaccountsmaintained Banking Unit(RBU)andForeign Currency Effective Percentages of Percentages Effective 100.00% 100.00% 100.00% 100.00% 99.86% 98.07% 2015 Ownership oftheParentnancial statements Company anditssubsidiaries nancial instruments thathave beenmeasuredatfair value. The 100.00% Philippines Foreign exchange Foreign Computer services Philippines brokerage Insurance 100.00% Philippines Philippines 100.00% 100.00% 98.00% Philippines Retail and consumer banking consumer and Retail Philippines 98.00% 99.85% Philippines Retail and consumer banking consumer and Retail Philippines 99.85% 2014 – Philippines Investment house Investment Philippines – Incorporation Principal Activities Principal Incorporation Country of cantinvestor, haseffective ownership in nancial assetsatfair value throughprofi cation by thestockholders duringtheir rmed by thestockholders t) ispresented settlement nance and nance t Company andafter products, oration ly. wise t 95 Annual Report 2015
ve and ceases tandard 1, 2015. 1, 2015. or more e to the eases to of during the liability he Group loses ntrolling interest stee); nancial position or cit balance. When necessary, When necessary, cit balance. cant impact on the fi t or loss or retained earnings, as appropriate, as t or loss or surplus ows relating to transactions between members of the ows nancial year except for the following new, amendments and new, the following for except nancial year t or loss and net assets not owned, directly or indirectly, by the Parent Company. the Parent by directly or indirectly, t or loss and net assets not owned, t or loss nition of Vesting Condition Vesting nition of t Plans: Employee Contributions - Accounting for Contingent Consideration in a Business Combination for Accounting - - Defi t ned Benefi nancial statements of the subsidiary to bring its accounting policies into line with the Group’s accounting nancial statements of the subsidiary to bring its accounting policies into line with the Group’s cally disclosed in the accounting policies of the Group and the Parent Company. accounting policies of the Group and the Parent cally disclosed in the transactions are resulting from intra-group and expenses balances, transactions and income cant intra-group , Defi t or loss and each component of other comprehensive income (OCI) are attributed to the equity to the holders of the income (OCI) are attributed component of other comprehensive t or loss and each nancial liabilities are offset and the net amount reported in the balance sheets only when there is a legally enforceable is a legally enforceable only when there in the balance sheets and the net amount reported liabilities are offset nancial Business Combinations Share-based Paymen nancial statements of the Group are prepared for the same reporting year as the Parent Company, using consistent Company, as the Parent reporting year the same nancial statements the Group are prepared for of es the parent’s share of components previously recognized in OCI to profi recognized share of components previously es the parent’s cit balance. • PFRS 2, Annual Improvements PFRS • to PFRSs (2010 – 2012 Cycle) would be recognized if the Group had directly disposed of the related assets or liabilities be recognized would • PFRS 3, PFRS • • simultaneously. Income and expenses are not offset in the statement of income unless required or permitted by any accounting s any by in the statement or permitted income unless required of offset are not expenses Income and simultaneously. or interpretation, and as specifi in Subsidiaries and Investments of Consolidation Basis fi consolidated The • • exposure, or rights, variable to returns from its involvement with the investee, and the ability use to its power over the investee affect to its returns. facts the Group considers all relevant or similar rights of an investee, When the Group has less than a majority of the voting Profi control the subsidiary. adjustments are made to the fi and cash fl income, expenses and liabilities, equity, All intra-group assets policies. Group are eliminated in full on consolidation. as an equity If t transaction. without a loss of control, is accounted for interest of a subsidiary, in the ownership A change signifi any as otherwise in the accounting policies did not have Except indicated, these changes of the Group: performance • 19 Amendments to PAS Financial assets and fi Financial assets settle the assets and net basis, or to realize on a is an intention to settle amounts and there the recognized right to offset All signifi accounting policies. eliminated in full. Company. to the Parent control is transferred from the date on which Subsidiaries are consolidated has: if and only if the Group an investee Group controls The • power over the investee (i.e., existing rights that give it the current ability direct to the relevant activitiesof the inve a defi if this results in the non-controlling interests having Group and to the non-controlling interests, even circumstances in assessing whether it has power over an investee, including: an investee, over circumstances in assessing whether it has power • • the contractual arrangement with the other holdersvote of the investee • rights arising from other contractual arrangements the voting Group’s rights and potential voting rights. one to and circumstances indicate that there are changes if facts Group re-assesses whether or not it controls an investee The of a subsidiary expenses liabilities, income and Assets, acquired or disposed when the Group loses control of the subsidiary. Group gains control until the date the Group c are included in the statement income from the date the the year of comprehensive it: a subsidiary, control over • • subsidiary the assets (including goodwill) and liabilities of the Derecognizes • the carrying non-controlling interest Derecognizes amount of any • to profi the related OCI recorded in equity the same and recycle Derecognizes • of the consideration received value fair the Recognizes • retained investment of any value fair the Recognizes Reclassifi • in profi the remaining difference Recognizes Non-Controlling Interest Non-controlling interest represents the portion of profi Non-controlling interest is presented separately in the consolidated statement of income, consolidated statement of comprehensi of the three elements of control. Consolidation of a subsidiaryof the three elements of control. Consolidation the subsidiary begins when the Group obtains over and control losses applicabl Any equity. income, and within equity in the consolidated balance sheet, separately from parent shareholders’ if this results in the non-co even non-controlling interest are allocated against the interests of the non-controlling interest a defi having and Disclosures Policies Accounting in Changes fi with those of the previous accounting policies adopted are consistent The as of January became effective and Philippine Interpretation which Standards Accounting (PAS) Philippine to PFRS, improvements 96 Annual Report 2015 measurement asawhole)atthe end ofeach reportingperiod. occurred between For assetsandliabilitiesthatarerecognized inthefi Level 3- Valuation techniques for which thelowest level inputthatis signifi • Level 2- Valuation techniques for which thelowest level inputthatissignifi Level 1-Quoted(unadjusted)market pricesinactive markets for identicalassetsorliabilities • • hierarchy, describedasfollows, basedonthelowest level inputthatissignifi All assetsandliabilitiesfor which fair value ismeasuredordisclosedinthefi value, maximizingtheuseofrelevant inputs. inputsandminimizingtheuseofunobservable observable The Groupusesvaluation techniques andfor thatareappropriateinthe circumstances which suffi the assetinitshighestandbestuseorby sellingittoanothermarket participantthatwould usetheassetinitshighestan • A fair value measurementofanon-fi economic bestinterest. using theassumptionsthatmarket participantswould usewhenpricingtheassetorliability, assumingthatmarket participants The principalorthemostadvantageousmarket mustbeaccessibleby theGroup. The fair valueisme ofanassetoraliability intheabsenceofaprincipalmarket, inthemostadvantageousmarket for theassetorliability. intheprincipalmarket for theassetorliability, or • • transfer takesplaceeither: theliability participants atthemeasurementdate. The fair value measurementisbasedonthepresumptionthattransactiontosell the Fair value isthepricethatwould bereceived tosellanassetor paid totransfer inanorderlytransactionbetwe aliability Also, fair values offi The Groupmeasuresfi FairMeasurement Value translation adjustment’. the year. Exchange differences ofcomprehensive arisingontranslationaretakendirectlytothestatement incomeunder‘Cumul Philippine Peso) atthePDSclosingrateprevailing atthereportingdate,anditsincome expenses aretranslatedatthePD As atthereportingdate,assetsandliabilitiesofFCDUaretranslatedintoParent Company’s currency presentation FCDU value inaforeign currency aretranslatedusingtheexchange ratesatthedatewhenfair value was determined. foreign currency aretranslatedusingtheexchange itemsmeasu ratesasatthedatesofinitialtransactions.Non-monetary charged againstoperations intheperiodwhich itemsthataremeasuredintermsofhistorica therateschange. Non-monetary the year. Foreign exchange differences offoreign arisingfromrestatements currency-denominated assetsandliabilitiesarecr prevailing atendoftheyear, andforeign currency-denominated incomeandexpenses, atthePDSweighted average rate(PDSWAR) assetsandliabilitiesintheRBUare translated inPhilippinepesobasedontheDealingSystem (PDS)closi monetary (US)dollars(USD),theFCDU’sin UnitedStates functionalcurrency. For fi balances The inPhilippinepeso,theRBU’s booksofaccountstheRBUaremaintained functionalcurrency, whilethoseoftheFCDUare and Transactions functional currency. The functionalcurrency oftheParent Company’s subsidiariesisthePhilippine peso. the Groupdeterminesitsown functionalcurrency anditemsincludedinthefi The consolidatedfi Foreign Currency Translation Signifi observable Annual Improvements to PFRSs (2011 – 2013 Cycle) 2013 – (2011 PFRSs to • PFRS Improvements Annual 3, • PFRS 8, • PFRS 13, • PAS 24, • PAS 16, • PAS 40, cant Accounting Policies Accumulated Depreciationand Amortization Assets totheEntity’s Assets Business Combinations - Combinations Business nancial statements arepresentedinPhilippinepeso,whichnancial statements istheParent Company’s functionalcurrency. Each in entity Investment Property Investment Disclosures Party Related Operating Segments Operating Levels inthehierarchy by re-assessingcategorization (basedonthelowest level inputthatissignifi Property, Plant and Equipment, and PAS 38, Intangible Assets Intangible 38, PAS and Equipment, and Plant Property, nancialinstruments measuredatamortized costaredisclosedinNote5. Fair Value Measurement Measurement Value Fair nancial instruments, such asfi Notes toFinancialStatements nancialassettakesintoaccountamarket participant’s togenerateeconomicbenefi ability - Aggregation ofOperatingSegmentsandReconciliation ofthe Total oftheReportableSegments’ ScopeExceptions for Joint Arrangements
- - Key ManagementPersonnel Portfolio Exception nancial statements onarecurring basis,theGroupdetermineswhether transfersnancial statements have nancial assetsatFVPLand AFS fi nancial reportingpurposes,theforeign currency-denominated canttothefair value measurement asawhole: ofeachnancial statements aremeasuredusingthat entity canttothefair value measurement isdirectlyorindirectly canttothefair value measurementisunobservable arecategorizednancial statements withinthefair value - Revaluation Method-Proportionate Restatementof nancial assetsatfair value ateach reportingdate. areavailablecient data tomeasurefair cant tothefair value d bestuse. edited toor tsby using maintained maintained actintheir en market SWAR for red atfair l costina asset or ng rate asured (the ative for
97 Annual Report 2015
the s from nancial nancial on of an the host are met: ellaneous principally d warrants. d warrants. s gain - net’ come under cation of its aken directly aken d on fi osal on the day osal on the day nancial liabilities ains and losses on nancial instruments instruments nancial cantly modify the cash nancial assets and fi nition of a derivative; and (c) the nition of a derivative; cation depends on the purpose for cation depends on the purpose for nancial liabilities at FVPL, the initial nancial assets) and ‘Interest expense’ assets) and ‘Interest expense’ nancial nancial assets in the following categories: following nancial assets in the nancial assets. Derivatives are recognized on are recognized Derivatives nancial assets. es its fi in the statement of income nancial asset is recognized ed as AFS fi ed as nancial assets and fi nancial contracts are also accounted for at FVPL. nancial contracts are also accounted for t or loss. nancial assets, and loans and receivables while fi and loans and receivables nancial assets, nancial liabilities or both which are managed and their performance are managed and their performance nancial liabilities or both which nancial and non-fi trading purposes, fi for nancial assets and liabilities held cant risk of changes in value. cant risk of changes nancial assets, fi nancial assets, AFS fi nancial assets, nancial liabilities carried at amortized cost. The classifi The cost. at amortized nancial liabilities carried cantly reduces the inconsistent treatment that would otherwise cantly reduces the inconsistent treatment that would arise from measuring the assets t or loss. ows, cash and cash equivalents include cash and other cash items, due from BSP and other banks, and due from BSP and other and other cash items, include cash and cash equivalents cash ows, nancial assets at FVPL, and in equity assets classifi nancial assets for nancial assets, except for derivatives, that require delivery time frame established regulation of assets within the by derivatives, for except nancial assets, nancial liabilities at FVPL are recorded in the balance sheet at fair value. Changes in fair value are recognized in are recognized value Changes in fair value. nancial liabilities at FVPL are recorded in the balance sheet at fair nancial liabilities are designated as at FVPL by management on initial recognition when any of the following criteria of the following when any management on initial recognition at FVPL by nancial liabilities are designated as nancial liabilities at FVPL fi nancial liabilities at FVPL include nancial instruments nancial instruments includes transaction costs. The Group classifi The includes transaction costs. nancial instruments nancial liabilities at FVPL and fi ed as fi ed as fi nancial instrument contains an embedded derivative, unless the embedded derivative does not signifi does unless the embedded derivative contains an embedded derivative, nancial instrument ows or it is clear, with little or no analysis, that it would not be separately recorded. that it would or no analysis, with little or it is clear, ows evaluated on a fair value basis, in accordance with a documented risk management or investment strategy; or strategy; basis, in accordance with a documented risk management or investment value on a fair evaluated fl or liabilities or recognizing gains or losses on them on a different basis; or them on a different or liabilities or recognizing gains or losses on nancial liabilities). nancial instruments are initially recognized at fair value. Except for fi for Except value. at fair are initially recognized nancial instruments nancial assets at FVPL, held-to-maturity (HTM) fi (HTM) at FVPL, held-to-maturity nancial assets An embedded derivative is separated from the host contract and accounted for as a derivative if all of the following conditions if all of the following as a derivative is separated from the host contract and accounted for An embedded derivative instruments held for trading is reported in the statement of income under ‘Interest income’ (for fi (for trading is reported in the statement of income under ‘Interest income’ held for instruments fi (for fi the • of are not closely related to the economic characteristic derivative and risks of the embedded (a) the economic characteristics meet the defi would with the same terms as the embedded derivative contract; (b) a separate instrument through profi value at fair is not recognized or combined instrument hybrid which the investments were acquired and whether they are quoted in an active market. Management determines the classifi market. are quoted in an active and whether they acquired were investments the which investments at initial recognition and, where allowed and appropriate, re-evaluates such designation at every reporting date. such and appropriate, re-evaluates where allowed at initial recognition and, investments dates of placements and that are subject to an insignifi dates of placements and Subsequent Measurement and - Initial Recognition Financial Instruments For purposes of reporting cash fl purposes of reporting For or les of three months original maturities have amounts of cash which to known that are convertible receivables interbank loans liabilities designated upon initial recognition as at FVPL, and derivative instruments. as at FVPL, and derivative liabilities designated upon initial recognition foreign service contracts are entered into as a Company’s These to customers and as a means of reducing and managing the Parent fi derivative trading purposes, but are not designated as hedges. Such as for risk, and interest rate risk as well exchange through profi are stated value at fair and embedded credit derivatives. warrants IRS, for that are bifurcated from the host fi Embedded derivatives Any gains or losses arising from changes in fair value of derivative instruments that do not qualify for hedge accounting are t that do not qualify for instruments of derivative value in fair gains or losses arising from changes Any Derivatives recorded an (IRS) interest rate swaps contracts, forward exchange particularly, instruments, is a party Company to derivative Parent The at FVPL Financial assets and fi - net’ in the statement and securities gain is reported in the statementearned or incurred of income. Interest of in ‘Trading and securitie contracts and ‘Trading forward exchange gain (loss) - net’ for exchange to the statement of income under ‘Foreign Financial instruments held for trading (HFT) include government debt securities and quoted equity securities purchased and held debt securities and quoted equity purchased securities trading (HFT) include government for held Financial instruments Financial instrumentsFinancial assets and fi designated at FVPL Financial assetsFinancial assets and fi and fi Financial instruments held for trading is met: • the designation eliminates or signifi Initial recognitionAll fi of fi • and liabilities are part of a group of fi the assets Date of recognition or sales of fi Purchases to (a) the recogniti date accounting refers date. Settlement on the settlement are recognized in the marketplace or convention g and unrealized and realized value, at fair securities are carried These term. with the intention of selling them in the near and securities gain - net’ in the statement of income. Interest earned or incurre as ‘Trading are recognized these instruments while dividend income is reported in the statement of income under ‘Misc respectively, or ‘Interest expense’, ‘Interest income’ asset on the day it is received by the Group, and (b) the derecognition of an asset and recognition of any gain or loss on disp of any the derecognition of an asset and recognition the Group, and (b) by it is received asset on the day fi of unrecognized value in fair change Any the Group. by asset is delivered that such assets classifi for by when cash is received are recognized loans and receivables amounts due to banks and customers a trade date basis. Deposits, to the borrowers. Group or advanced measurement of fi fi has been established. payment when the right to receive income’ are classifi Cash and Cash Equivalents Cash and Cash 98 Annual Report 2015 credit losses’. The effects oftranslationforeign currency-denominated HTM fi The lossesarisingfromimpairmentofsuch investments arerecognizedofincomeunder‘Provision inthestatement for impairmen are recognized inincomewhentheHTM fi part oftheeffective interestrate(EIR). The amortizationisincludedin‘Interestincome’ ofincome.Gain inthestatement impairment invalue. Amortized costiscalculatedbyintoaccountany taking discountorpremiumonacquisitionandfees that After initialmeasurement,theseinvestments aresubsequentlymeasuredatamortized costusingtheeffective interestmethod,l amount ofHTM fi Group’s managementhasthepositivetoholdmaturity. intentionandability Where theGroupwould sellotherthan aninsign date ofreclassifi fi fi The Groupmay reclassify, non-derivative inrarecircumstances, fi Reclassifi fi This accountingpolicy relatestothebalancesheetcaptions‘Depositliabilities’, ‘Billspayable’, ‘Manager’s checks’, ‘Subor fees thatareanintegralpartofthe EIR. cost usingtheeffective interestmethod. Amortized costiscalculatedbyintoaccountany taking discountorpremiumonthei After initialmeasurement,otherfi fair valuecomponentonthedateof issue. oftheliability component beingassignedtheresidualamountafter deductingfromtheinstrument asawholetheamountseparatelydetermined The componentsofissuedfi the obligationotherthanby theexchange of a fi contractual arrangement resultsintheGrouphaving an obligation eithertodeliver cashoranotherfi These areissuedfi fi Other credit losses’ ofincome. inthestatement payment hasbeenestablished. The lossesarisingfromimpairmentofsuch investments arerecognized as‘Provision for impairme earned onholding instrumentsAFS equity arerecognizedofincomeas‘Miscellaneousincome’ inthestatement when therightto ofincome.Interestearnedonholding net’ inthestatement AFS debtsecuritiesarereportedas‘Interestincome’ usingtheEI isdisposedof,When thesecurity thecumulative gainorlosspreviously recognized inOCI isrecognized as‘Trading andsecuri earnings andarereportedas‘Netunrealized gains(losses)on AFS fi income. The unrealized gainsandlossesarisingfromthefair valuation of AFS fi securities, aswell astheimpactoftranslationforeign currency-denominated AFS debt securities,isreportedinthestatem After initialmeasurement, AFS fi changes inmarket conditions. They investments, includeequity money market papersandotherdebt instruments. assets, orloansandreceivables. They arepurchased andheldindefi AFS fi fi Available-for-sale impairment arerecognized under‘Provision for impairmentandcreditlosses’ ofincome. inthestatement an integralpartoftheEIR. The amortizationisincludedunder‘Interestincome’ ofincome. inthestatement The lossesaris impairment. Amortized costiscalculatedbyintoaccountany taking discountorpremiumonacquisitionandfees andcoststhat After initialmeasurement, thesearesubsequentlymeasuredatamortized costusingtheeffective interestmethod,lessallowanc thosefor which theGroupmay notcover allofitsinitialinvestment, substantially otherthanbecauseofcreditdeteriorati thosethattheGroup,uponinitialrecognition,designatesas AFS; and • • thosethattheGroupintendstosellimmediatelyorinnear termandthosethattheGroup,uponinitialrecognition,desi • ‘Other assets’. These arefi and receivables’, and‘Accrued interestreceivable’. Italsoappliestoaccountsreceivable andotherfi This accountingpolicyrelatestothebalancesheetcaptions‘DuefromBSP’, ‘Duefromotherbanks’, ‘Interbankloansreceivabl receivable and Loans fi HTM fi Held-to-maturity modifi tothecontract.Reassessmenta party ofembeddedderivatives isonlydonewhentherearechanges inthecontractthatsignifi The Groupassesseswhetherembeddedderivatives arerequiredtobeseparatedfromthehostcontractswhenGroupfi nancial instruments outofthe AFS fi nancial assets,Loans andReceivables orHTM fi nancialliabilitiespresentedunder ‘Accrued interestandother expenses’ and ‘Otherliabilities’. FVPL; nancial assetsarethosewhich aredesignatedassuch ordonotqualifytobeclassifi esthecontractual cashfl nancial assetsarequotednon-derivative fi nancial liabilities nancial cationofFinancial Assets cation,which becomesthenew amortized cost. nancial assets, the entire category wouldandreclassifi betainted nancialassets,theentirecategory nancial assets nancial nancial assets nancial nancial instruments ortheircomponentswhich ofthe arenotdesignatedasatFVPL andwherethesubstance nancialassetswithfi nancial instruments that contain both liability and equity elementsareaccountedfor andequity separately,nancial instruments bothliability thatcontain withtheequity ows that would otherwise berequired. ows thatwould otherwise nancial assetsaresubsequentlymeasuredatfair value. The effective yieldcomponentof AFS debt nancial liabilitiesnotqualifi Notes toFinancialStatements nancial assetstoloansand receivables category. Reclassifi nancial assetsarederecognized andimpaired,aswell asthroughtheamortizationprocess. xed amountofcashoranotherfi xed ordeterminablepayments thatarenotquotedinanactive market, otherthan: nancial assetswithfi nancial assetscategories. The Groupmay alsoreclassify, circumstances, incertain ed andnotdesignated asatFVPLaresubsequentlymeasuredamortized nancial assetsoutoftheHFT investmentsandintothe AFS category nancialassets’ underOCI. xed ordeterminablepayments andfi nitely, andmayrequirementsor besoldinresponsetoliquidity nancial assetsarerecognizedofincome. inthestatement nancial assetfor afi nancial assetsareexcluded, fromreported netoftax, edas AFS fi ed asfi nancialassets. cations arerecordedat fair value atthe nancial assettothe holder, ortosatisfy nancial assetsatFVPL,HTM fi xed numberofitsownshares. equity nancial instruments shown under xed maturities for which the dinated debt’, and are anintegral rst becomes rst R. Dividends s andlosses on. es’, ‘Loans ties gain- gnates as ssue and ing from ess any nancial cantly nt and ent of ifi t and cant e for are the the
99 Annual Report 2015
y ent xisting l of the meets income. ideration uarantee between ability are cant or not, le. the asset is pairment and en realized. ects the cash e original credit culty, default or default culty, djustment to the nt (or events) has nt (or events) nancial assets is impaired. cant. nancial diffi nancial asset refl cant fi nancial reorganization and where nancial assets, together with the nancial assets, together nancial assets is disclosed in Note 8. nancial assets is disclosed nancial asset, whether signifi ed fi ows, such as changes in arrears or economic in arrears as changes such ows, nancial assets for the foreseeable future or until or future foreseeable the assets for nancial nancial asset’s original EIR. nancial asset’s nancial asset or group of fi nancial assets) is derecognized when: nancial assets) is derecognized Evidence nancial assets that can be reliably estimated. ows of a collateralized fi of a collateralized ows ows (excluding future credit losses that have not been credit losses that have future (excluding ows ed, and if the Group subsequently increases its estimates of future its estimates of future subsequently increases ed, and if the Group nancial assets that are not individually signifi ows from an asset or has entered into a pass-through arrangement, and from an asset or has entered into a pass-through arrangement, ows ows for groups of such assets by being indicative of the debtors’ ability to pay of the debtors’ being indicative assets by groups of such for ows ows is discounted at the fi ows rst assesses whether objective evidence of impairment exists individually for individually for of impairment exists evidence rst assesses whether objective ows from the asset and either (a) has transferred substantially all the risks and and either (a) has transferred from the asset ows nancial asset or the group of fi cation is treated as a derecognition of the original liability cation is treated as a derecognition new and the recognition of a ows is also amortized over the remaining life of the asset using the effective interest interest of the asset using the effective the remaining life over is also amortized ows nancial asset or part of a group of fi nancial asset or part of ows from the asset, but has assumed an obligation to pay them in full without material but has assumed an obligation to pay from the asset, ows nancial assets category, any previous gain or loss on that asset that has been recognized asset that has been recognized gain or loss on that previous any nancial assets category, nancial asset is reclassifi cant, or collectively for fi for cant, or collectively of the fi ows nancial assets with similar credit risk characteristics and collectively assesses for impairment. Those Those impairment. assesses for and collectively nancial assets with similar credit risk characteristics ows from the asset have expired; or expired; from the asset have ows nancial assets is deemed to be impaired if, and only if, there is objective evidence of impairment as a result evidence is objective there and only if, nancial assets is deemed to be impaired if, ed out of the AFS fi ed out of the t or loss over the remaining life of the investment using the effective interest method. Any difference between difference Any interest method. the effective using of the investment the remaining life t or loss over ed, such an exchange or modifi an exchange ed, such cation is at the election of management, and is determined on an instrument by instrument basis. The Group does not reclassif The basis. instrument by on an instrument is at the election of management, and is determined cation ability has the intention and the Group to hold the fi of loans and receivables, nition nancial asset reclassifi delay to a third party under a “pass-through” arrangement; or “pass-through” arrangement; to a third partydelay under a asset. rewards of the asset, or (b) has neither transferred nor retained the risks and rewards of the asset but has transferred contro of the asset but has transferred nor retained the risks and rewards transferred of the asset, or (b) has neither rewards nancial instrument into the FVPL category after initial recognition. An analysis of reclassifi An analysis initial recognition. into the FVPL category nancial instrument after nancial assets carried at amortized cost, the Group fi at amortized nancial assets carried nancial liability is derecognized when the obligation under the liability is discharged, cancelled or has expired. Where an e or has expired. cancelled nancial liability when the obligation under the liability is discharged, is derecognized nancial asset (or, where applicable a part of a fi nancial asset (or, nancial asset or a group of fi nancial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing li terms, or the terms of an existing another from the same lender on substantiallynancial liability different is replaced by ows that may result from foreclosure less costs for obtaining and selling the collateral, whether or not foreclosure is probab obtaining less costs for and selling the collateral, whether or not foreclosure result from foreclosure that may ows nancial assets that are individually signifi fi substantially modifi carrying in the statement in the respective amounts is recognized of income. and the difference liability, Financial assets carried at amortized cost Financial liabilitiesA fi Financial assetsA fi Reclassifi fi any • • cash fl the rights to receive the Group retains cash fl the right to receive • cash fl its rights to receive the Group has transferred cash fl its rights to receive Where the Group has transferred control of the asset, nor retained of the asset nor transferred substantially all the risks and rewards has neither transferred of a g that takes the form in the asset. Continuing involvement continuing involvement of the Group’s to the extent recognized of the original carrying amount of the asset and the maximum amount of cons asset is measured at the lower the transferred over that the Group could be required to repay. The Group may reclassify a non-derivative trading asset out of HFT investments and into the Loans and Receivable category it Receivable if and the Loans and into out of HFT investments trading asset a non-derivative reclassify may Group The the defi circumstances. and only in rare maturity If a fi estimate. in change EIR from the date of the a fi For to profi in OCI is amortized the new amortized cost and the expected cash fl cost and the expected amortized the new cash receipts as a result of increased recoverability of those cash receipts, the effect of that increase is recognized as an a of that increase is recognized receipts, the effect of those cash of increased recoverability cash receipts as a result to the statement of the amount recorded in OCI is recycled subsequently determined to be impaired then method. If the asset is Derecognition of Financial Assets and Liabilities Assets Derecognition of Financial characteristics are relevant to the estimation of future cash fl to the estimation of future are relevant characteristics it includes the asset in a group of fi im that are individually assessed for Assets terms of the assets being evaluated. all amounts due according to the contractual impairment. assessment for are not included in a collective an impairment loss is, or continues to be, recognized which for If the Group determines that no objective evidence of impairment exists for individually assessed fi for of impairment exists evidence If the Group determines that no objective fl to the statem of loss is charged account and the amount carryingThe asset is reduced through use of an allowance amount of the fi The based on the original EIR of the asset. of income. Interest income continues to be recognized recovery and all collateral has be when there is no realistic prospect of future off accounts, are written associated allowance of one or more events that has occurred after the initial recognition of the asset (an incurred ‘loss event’) and that loss eve and that loss ‘loss event’) of the asset (an incurred the initial recognition after that has occurred of one or more events Impairment of Financial Assets Impairment of Financial that a fi evidence there is objective reporting date whether Group assesses at each The A fi cash fl an impact on the estimated future signifi is experiencing or a group of borrowers include indications that the borrower of impairment may or other fi the probability will enter bankruptcy that they delinquency in interest or principal payments, observable cash fl data indicate that there is measurable decrease in the estimated future with defaults. conditions that correlate fi If there is objective evidence that an impairment loss has been incurred, the amount of the loss is measured as the difference the amount of the loss is measured as the difference that an impairment loss has been incurred, evidence If there is objective For fi For the asset’s carrying amount and the present value of the estimated future cash fl cash carrying of the estimated future amount and the present value the asset’s cash fl of the estimated future present value The incurred). th EIR, adjusted for impairment loss is the current measuring any discount rate for interest rate, the If a loan has a variable risk premium. The calculation of the present value of the estimated future cash fl of the estimated future calculation of the present value The risk premium. 100 Annual Report 2015 Associates pertain toallentitiesoverAssociates pertain which theGrouphassignifi Investment in Associates earned onthisinvestment isrecognized intheParent Company’s ofincomeasdeclaredby statement therespective BOD ofthein In theparentcompany fi Investment inSubsidiaries EIR, isrecognized in‘Provision for impairmentandcreditlosses’ ofincome. inthestatement difference betweentherecordedvalue oftheoriginalloanandpresentvalue oftherestructured cashfl occur. The loanscontinuetobesubjectanindividualorcollective impairmentassessment,calculatedusingthe loan’s orig past due.Managementcontinuouslyreviews restructured loanstoensurethatallcriteriaaremetandfuture payments are arrangements andtheagreementofnew loanconditions.Oncethetermshave beenrenegotiated,theloanisnolongerconsidered Where possible,theGroupseekstorestructure loansratherthantotakepossessionofcollateral. This mayloans involve extending Restructured investmentsIn thecaseofequity classifi fi Forfi fi AFS Available-for-sale value ofestimatedfuture cashfl instrument hasbeenincurred, theamountoflossismeasuredasdifference betweentheasset’s amountandthepres carrying value cannotbereliablymeasured,oronaderivative assetthatislinked toandmustbesettled byofsuch delivery anunquot cost at carried If thereisobjective evidenceinstrument thatanimpairmentlossonunquotedequity thatisnotcarried atfair value becau assets Financial recovered, any amountsformerly charged arecreditedto‘Provision for impairmentandcreditlosses’. was recognized, thepreviously recognized impairmentlossisreducedby adjustingtheallowance account.Ifafuture write-off If, inasubsequentyear, theamountofestimatedimpairmentlossdecreasesbecauseanevent occurring after theimpairm are reviewed regularlyby theGrouptoreduceany differences betweenlossestimatesandactual lossexperience. indicative ofincurred lossesintheGroupandtheirmagnitude). The methodologyandassumptionsusedfor estimatingfuture ca period to(such aschanges prices,payment inunemployment prices,commodity status, orotherfactors rates,property th currently. Estimatesofchanges infuture cashfl the periodonwhich thehistoricallossexperience isbasedandtoremove theeffects ofconditionsinthehistoricalperiodth torefl Historical lossexperience data isadjustedonthebasisofcurrent observable impairment areestimatedonthebasisofhistoricallossexperience for assetswithcreditriskcharacteristics similartothos industry, past-duestatus andterm.Future collateraltype, cashfl For thepurposeofacollective evaluation ofimpairment, fi losses resulting from transactions between theGroupandanassociateareeliminatedtoextentlosses resultingfromtransactions between oftheinterestinassoc the Groupdoesnotrecognize furtherlosses,unlessithasincurred obligations ormadepayments onbehalfoftheassociate. P When theGroup’s shareoflossesinanassociateequals orexceeds itsinterestintheassociate, includingany otherunsecured ofchangesthe statement inequity. recognized oftheassociate,Grouprecognizes directlyintheequity itsshareofany changes anddisclosesthis,whenappl not amortized. The ofincomerefl statement share ofthenetassetsassociates.Goodwill,ifany, value ofthe relatingtoanassociateisincludedinthecarrying method,aninvestmentUnder theequity inanassociate iscarried inthebalancesheetatcostpluspost-acquisition changes in methodofaccounting. under theequity ofthevoting and50.00% rights.Intheconsolidatedfi between 20.00% In thecaseofdebtinstruments classifi ofincome. Increasesinfairstatement value after impairmentarerecognized directlyinOCI. - isremoved investments fromOCIandrecognizedofincome.Impairmentlossesonequity inthestatement arenotreversed thro acquisition costandthecurrent fair value, lessany impairmentlossonthatfi of theinvestments below itscost. Where thereisevidence ofimpairment,thecumulative loss-measuredasthedifference bet impairment losswas recognizedofincome,theimpairmentlossisreversed ofincome. inthestatement throughthestatement subsequent years, thefair value ofadebtinstrument increasedandtheincreasecanbeobjectively relatedtoanevent occurri for thepurposeofmeasuringimpairmentloss.Such accrual isrecordedaspartof‘Interest income’ ofincome inthestatement amountandisaccrued basedontherateofinterestusedtodiscountfutureinterest incomeisbasedonthereducedcarrying ca the amortized costandthecurrent fair value, lessany impairmentlossonthatinvestment previously recognized inprofi carried atamortized cost.H nancialassetsisimpaired. nancial assets,theGroupassessesateach reportingdatewhetherthereisobjective evidence thatafi nancial assets nancial nancial statements, investmentnancial statements, insubsidiariesiscarried atcost,lessaccumulatedimpairmentinvalue. Dividends owever, ows discountedatthecurrent market rateofreturn for asimilarfi Notes toFinancialStatements the amountrecordedfor impairmentisthecumulative lossmeasuredasthedifference between ed as AFS fi ed as AFS fi ectstheshareofresultsoperationsassociate. Where therehasbeenachange ows refl nancial assets,impairmentisassessedbasedonthesamecriteriaasfi nancial assets,thiswould includeasignifi ect, andaredirectionallyconsistentwithchanges from data inrelated observable nancial assetsaregroupedonthebasisofsuch creditriskcharacteristics as cantinfl ows inagroupoffi uencebutnotcontrol,generallyaccompanying a shareholding of nancial statements, investments nancialstatements, inassociatesare accountedfor nancial assetpreviously recognizedofincome inthestatement ecttheeffects ofcurrent conditionsthatdidnotaffect nancial assetsthatarecollectively evaluated for cant orprolongeddeclineinthefair value nancialasset. ows, discountedattheoriginal nancial assetorgroupof investment andis t orloss.Future nancial assets nancial e inthegroup. at donotexist inal EIR. The the payment receivables, theGroup’s ng after the iate. ween the ed equity ed equity se itsfair icable, in sh fl sh fl rofi likely to islater ugh the vestee. . If, in at are ts or ts ows ows ent ent
101 Annual Report 2015
of the e ments l of the may be may amount ludes the ssociated t includes directly in furniture, furniture, the portion erest in the allocated to ionate share ee. For each each ee. For is authorized is authorized with PAS 39, with PAS h the goodwill quent changes quent changes cation and designation t or loss. t or loss. ed as equity, it should not be remeasured until it is as equity, ed uence and the fair value of the retained investment of the retained investment value uence and the fair cant infl t from the synergies of the combination, irrespective of whether t from the synergies of the combination, irrespective t or loss. xtures and equipment when that cost is incurred and if the recognition criteria and equipment when that cost is incurred xtures able assets acquired and liabilities assumed. If this consideration is lower than is lower able assets acquired and liabilities assumed. If this consideration nancial assets and liabilities assumed for appropriate classifi nancial assets and liabilities assumed for ed for segment reporting purposes. ed for t or loss. uence over the associate, the Group measures and recognizes any retained investment at its fair value. Any Any value. at its fair retained any investment the Group measures and recognizes the associate, uence over able net assets. Acquisition costs incurred are charged to profi are charged costs incurred Acquisition able net assets. Dividends in value. at cost, less accumulated impairment in associates are carried nancial statements, investments cant infl t or loss or as a charge to OCI. If the contingent consideration is classifi to OCI. If the contingent consideration or loss or as a charge t nancial statements of the associate are prepared for the same reporting period as the Parent Company. Where necessary, adjust necessary, Where Company. as the Parent same reporting period the nancial statementsare prepared for of the associate nally settled within equity. nally settled xtures and equipment are stated at cost less accumulated depreciation and amortization, and any impairment in value. Such cos Such and equipment are stated impairment in value. less accumulated depreciation and amortization, and any at cost xtures business combination, the acquirer measures the non-controlling interest in the acquiree either at fair value or at the proport value interest in the acquiree either at fair the acquirer measures the non-controlling business combination, and proceeds from disposal is recognized in profi is recognized and proceeds from disposal and Goodwill Business Combinations as the aggregate cost of an acquisition is measured The method. using the acquisition are accounted for Business combinations interest in the acquir non-controlling and the amount of any value at acquisition date fair measured consideration transferred, s identifi of the acquiree’ the fi When the Group acquires a business, it assesses fi and the of the consideration transferred value of the aggregate of fair the excess Goodwill is initially measured at cost being testing, the purpose of impairment is, from the date of acquisition, goodwill acquired in a business combination impaired. For to benefi CGUs, or groups of CGUs, that are expected Group’s of the each or group of units to whic unit assigned to those units or group of units. Each other assets or liabilities of the acquiree are with the operation disposed of is included in the carrying when determining the gain or loss on disposa amount of the operation of the operation disposed of and operation. Goodwill disposed of in this circumstance values is measured based on the relative difference between the carrying loss of signifi amount of the associate upon difference in profi is recognized the subsidiary of the net assets of value the fair acquired, the difference in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This inc This terms, economic circumstances conditions as at the acquisition date. and pertinent in accordance with the contractual at the acquisition date through profi value acquiree is remeasured to fair Subse at the acquisition date. value at fair the acquirer will be recognized by contingent consideration to be transferred Any either in profi the net identifi over non-controlling interest for recognized accumulated impairment losses. recognition, goodwill is measured at cost less any initial After in circumstances indicate the carrying or changes value impairment annually or more frequently if events Goodwill is tested for is allocated: • • purposes; and internal management the goodwill is monitored for within the Group at which level represents the lowest is not larger than an operating segment identifi a the goodwill group of CGUs) and part of the operation within that unit is disposed of, part of a CGU (or Where goodwill forms of the CGU retained. Cash Dividend and Non-cash Distribution to Equity Holders of the Parent a liability cash or non-cash distributions to equity recognizes to make holders of the parent when the distribution Company The directly in equity. amount is recognized A corresponding and the distribution is no longer at the discretion of the Company. remeasurement recognized value of the assets to be distributed with fair value Non-cash distributions are measured at the fair in the statementassets distributed is recognized of income. Equipment and Fixtures Furniture, Premises, Bank and as buildings, leasehold improvements, while depreciable properties such Land is stated impairment in value at cost less any separation of embedded derivatives in host contracts by the acquiree. in host contracts by separation of embedded derivatives held equity previously int of the acquirer’s in stages, value the acquisition date fair If the business combination is achieved in accordance will be recognized is deemed to be an asset or liability, consideration which of the contingent value to the fair equity. between the carrying amount of the liability and the carrying amount of th difference Upon distribution of non-cash assets, any fi fi the cost of replacing part of the bank premises, furniture, repairs and maintenance costs. are met, but excluding are made to bring the accounting policies in line with those of the Group. policies in line with those bring the accounting are made to fi In the parent company investees. Upon loss of signifi The fi The of the BOD the respective statement as declared by of income Company’s Parent in the are recognized earned on these investments 102 Annual Report 2015 the carrying amountoftheassetandarerecognized inearningswhentheassetisderecognized.the carrying assetaremeasuredasthedifferenceGains andlossesarisingfromderecognition ofanintangible betweenthenetdisposalproc amount,animpairment lossisrecognized. its carrying amount isthehigherofCGU’s fair value lesscoststosellanditsvalue inuse. Where therecoverable amountoftheCGU is determinedby assessingtherecoverable amountofeach CGU(orgroupofCGUs)towhich assetrelates.Recove theintangible Such assetsarenotamortized, intangible insteadthey aretestedfor impairmentannuallyeitherindividuallyorattheCGUlev is noforeseeable limittotheperiodover which they areexpected togeneratenetcashinfl The branch licensesareinitiallymeasuredatfair value asofthedateacquisitionandaredeemedtohave anindefi licenses Branch expected pattern ofeconomicbenefi amortization methodandusefullife arereviewed periodicallytoensurethatthemethodandperiodofamortizationare consiste Costs relatedtosoftware purchased by theGroupfor useinoperationsareamortized onastraight-linebasisover 3to10 year costs Software (Notes 10 and13). assets includesoftwareIntangible costandbranch licensesresulting fromtheParent Company’s Bank acquisitionofCBSI,Unity Assets Intangible development withaview tosale. properties when,andonlythereisachange inuseevidenced by commencementofowner occupation orcommencementof orendingofconstructioncommencement ofanoperatingleasetoanotherparty ordevelopment. Transfers aremadefrominvestme Transfers aremadetoinvestment propertieswhen,andonlythereisachange inuseevidenced by endingofowner occupati arerecognized as‘Gainonsaleofinvestmentproperty properties’ ofincomeintheyear inthestatement ofderecognition. withdrawn fromuseandnofuture benefi Investment propertiesarederecognized whenthey have eitherbeendisposedoforwhentheinvestment propertiesarepermanently properties which rangedfrom 10 to33years fromthetimeofacquisitioninvestment properties. Depreciation iscalculatedonastraight-linebasisusingtheremainingEULofbuildingandimprovement componentsofinves charged toincomeintheperiod inwhich thecostsareincurred. Expenditures incurred after theinvestment propertieshave beenputintooperation,such asrepairsandmaintenancecosts,are impairment invalue except for landwhich atcostlessimpairmentinvalue. isstated Subsequent toinitialrecognition,depreciableinvestment atcostlessaccumulateddepreciationandany propertiesarestated a (a) theexchange lacks or(b)thefair commercialsubstance value ofneithertheassetreceived northeassetgiven upisrelia assetexchange transaction costs.Investmentcertain propertiesacquiredthroughanonmonetary ismeasuredinitiallyatfair v Investment propertiesincluderealacquiredinsettlement ofloansandreceivables which aremeasuredinitiallyatc Investment Properties ofincomeintheyear amountoftheasset)isincludedinstatement theassetisderecog disposal proceedsandthecarrying expected fromitsuseordisposal. Any gainorlossarisingonderecognitionoftheasset(calculatedasdifference betwee An itemofbankpremises,furniture, fi equipment andleaseholdimprovements. and amortizationareconsistentwiththeexpected pattern ofeconomicbenefi The depreciationandamortizationmethodusefullife arereviewed periodicallytoensurethatthemethodandperiodofdepr as follows: Depreciation andamortizationiscalculatedusingthestraight-linemethodover theestimatedusefullife (EUL)ofthedeprecia in-progress isnotdepreciateduntilsuch timethattherelevant assetsarecompletedandputintooperationaluse. attributable costsofbringingtheassettoitsworking conditionandlocationfor itsintendeduse,includingborrowing costs. Construction-in-progress atcostlessany isstated impairmentinvalue. The initialcostcomprisesitsconstruction costand Furniture, fi Buildings Leasehold improvements Shorter of 6 years or the related lease terms lease related the or of6years Shorter improvements Leasehold xtures and equipment and xtures Notes toFinancialStatements tsembodiedintheasset. xtures andequipment isderecognized upondisposalorwhennofuture economic benefi t isexpected fromtheirdisposal. Any gainsorlossesonthederecognitionofaninvestment ts fromitemsofbankpremises,furniture, fi ows for theGroup. 3 to5years 50 years nite usefullife asthere EUL bly measurable. el. Impairment Construction- ost, including ccumulated any directly xtures and xtures alue unless is lessthan nt withthe ble assets nized. andPDB n thenet eeds and normally eciation s. The ts are ts tment rable on, nt
103 Annual Report 2015
n le nd to nt that ts, the r CGU) ersal is e case, sessing they are they uity as a the lease par value’ par value’ the asset’s the asset’s recognized recognized een a change een a change for an individual for ed as operating market ects current ed as operating leases. c asset or assets and the arrangement c asset or assets and the arrangement ed asset; or nancial assets (e.g., investment in associates, (e.g.,nancial assets investment ow to the Group and the revenue can be reliably to the Group and the revenue ow ts will fl ts of ownership of the assets are classifi ts of ownership ts of ownership of the asset are classifi ts of ownership Revenue is measured at the fair value of the consideration received or of the consideration received value is measured at the fair Revenue c to the asset (or CGU). llment is dependent on a specifi ows that are largely independent of those from other assets or groups of assets, in of those from other assets or groups of assets, that are largely independent ows xtures and equipment and intangible assets) may be impaired. When an indicator of When an indicator be impaired. and intangible and equipment assets) may xtures ned terms of payment and excluding taxes or duty. The Group assesses its revenue Group assesses its revenue The taxes or duty. and excluding ned terms of payment using a pre-tax rate that refl to their present value discount are discounted ows llment of the arrangement is dependent on the use of a specifi llment of the arrangement c criteria in order to determine if it is acting as principal or agent. The Group has concluded that it is acting as Group has concluded The is acting as principal or agent. c criteria in order to determine if it nancial Assets nancial right to use the asset. A reassessment is made after inception of the lease only if one of the following applies: if one of the following inception of the lease only is made after A reassessment right to use the asset. nancial assets, excluding goodwill and branch licenses, an assessment is made at each reporting date as to whether there is reporting date as to is made at each licenses, an assessment goodwill and branch nancial assets, excluding term; or a principal in all of its revenue arrangements. a principal in all of its revenue leases. Initial direct costs incurred in negotiating operating leases are added to the carryingleases. Initial direct costs incurred amount of the leased asset and in eq shares are shown to the issuance of new are directly attributable in the balance sheet. Incremental which costs incurred deduction from proceeds, net of tax. Recognition Revenue that it is probable that the economic benefi to the extent is recognized Revenue is being made. measured, regardless of when the payment defi takingreceivable, into account contractually against specifi arrangements over the lease term on the same basis as the rental income. Contingent rents are recognized as revenue in the period in which in the period in which the lease term on the same basis as the rental as revenue income. Contingent rents are recognized over earned. Capital Stock under equity of are recognized as ‘Capital of par value paid in excess in excess Proceeds are recorded at par. Capital stocks Leases where the Group does not transfer substantially all the risks and benefi where the Group does not transfer Leases Group as a lessee where the lessor retains Leases substantially all the risks and benefi Group as a lessor At each reporting date, the Group assesses whether there is any indication that its nonfi indication that whether there is any the Group assesses reporting date, At each fi bank premises, furniture, properties, investment estimate of recoverab a formal an asset is required, the Group makes or when an annual impairment testing for impairment exists the lease term a in the statement as an expense of income on a straight-line basis over are recognized Operating lease payments Impairment of Nonfi Impairment amount. in use and is determined less costs to sell and its value value fair (or CGU’s) amount is the higher of an asset’s Recoverable does not generate cash infl asset, unless the asset Where the carrying amount of an asset (o it belongs. to which amount is assessed as part of the CGU case the recoverable which if there has b goodwill, only for except impairment loss is reversed, recognized A previously amount is estimated. recoverable If that is th recognized. amount since the last impairment loss was recoverable in the estimates used to determine the asset’s included in ‘Occupancy cost’ in the statement of income. exceeds its recoverable amount, the asset (or CGU) is considered impaired and is written down to its recoverable amount. In as amount. In to its recoverable down CGU) is considered impaired and is written amount, the asset (or recoverable its exceeds cash fl estimated future in use, the value and the risks specifi of money value assessments of the time it arises. in which operations in the year to charged An impairment loss is nonfi For indication exis decreased. If such have or may no longer exist impairment losses may recognized indication that previously any the carrying amou increased amount cannot exceed That amount. the carrying is increased to its recoverable amount of the asset would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such rev Such the asset in prior years. for been recognized been determined, net of depreciation, had no impairment loss have would to allocate years is adjusted in future the depreciation expense a reversal, such After in the statement recognized of income. life. its remaining basis over on a systematic carrying residual value, revised amount, less any Leases is, or contains determination of whether an arrangement a lease is based on the substance a and requires The of the arrangement assessment of whether the fulfi conveys a (a) or of the arrangement; or extension terms, other than a renewal in contractual there is a change (b) in initially included was or extension unless that term of the renewal granted, or extension option is exercised a renewal (c) fulfi in the determination of whether there is a change (d) to the asset. there is a substantial change Where a reassessment is made, lease accounting shall commence or cease from the date when the change in circumstances gave rise in circumstances gave shall commence or cease from the date when the change Where a reassessment is made, lease accounting scenario (b). period for or extension and at the date of renewal (d) above, scenarios (a), (c), or the reassessment for 104 Annual Report 2015 The costofproviding benefi form ofrefundsfromtheplanorreductionsinfuture contributionstotheplan. approximating thetermsofrelatedretirement liability. The assetceilingisthepresentvalue ofany economicbenefi determined by discountingtheestimatedfuture cashoutfl The defi period reducedby thefair value ofplanassetsandadjustedfor any effect oflimitinganetdefi transaction orotherevent arerecognized simultaneously. c remeasurementsof netdefi (c) netinterestonthedefi (b) (a) service cost; Defi The netdefi Defi Retirement Benefi when incurred. Expenses encompasslossesaswell courseofbusinesstheGroup.Expensesarer asthoseexpenses thatariseintheordinary Expenses Other the fi Interest expense for allinterest-bearingfi Expense Interest hasoccurred andthedecreaseineconomicbenefi liability Expense isrecognized whenitisprobablethatadecreaseinfuture economicbenefi Expense Recognition ofincomeunder‘Miscellaneousincome’.in thestatement Rental incomearisingonleasedpropertiesisaccountedfor onastraight-linebasisover theleasetermsonongoingleasesand income Rental ofthesalespriceisreasonablyassured. the earningprocessandwhencollectability Incomefromsaleofpropertiesisrecognized isrecognizeduponcom uponrenditionoftheservice. Income fromsaleofservice income Other trading anddesignatedatFVPL.Italsoincludesgainslossesrealized fromsaleof AFS fi gain This representsresultsarisingfromtradingactivitiesincludingallgainsandlosseschanges infair value offi securities and Trading Dividend incomeisrecognized whentheGroup’s righttoreceive payment isestablished. income Dividend collectability. chargesService andpenaltiesarerecognized as onlyuponcollectionoraccrued wherethereisareasonabledegreeofcertainty syndication agreement. recognized uponcompletionofallsyndicationactivitiesandwheretheGroupdoesnothave furtherobligationstoperform under charges Loan commitmentfees arerecognized asearnedoverservice thetermsofcreditlinesgrantedtoeach borrower. Loan syndicationfe and fees Loan income continuestoberecognized amount. usingtheoriginalEIRappliedtonew carrying Once therecordedvalue ofafi as ‘Interestincome’. not future creditlosses. amountiscalculatedbasedontheoriginalEIR. The adjustedcarrying The change amount incarrying includes any fees coststhataredirectlyattributable orincremental totheinstrument andareanintegralpartoftheEIR,as fi the expected life ofthefi assets, interestincomeisrecordedatEIR,which istheratethatexactly discountsestimatedfuture cashpayments orreceipts For allfi income Interest The following specifi nancial liability. The calculationtakesintoaccountallcontractual termsofthefi nedbenefi benefi ned nancialliabilitiestowhich they relate. nancial instruments measuredatamortized costandinterest-bearingfi ned benefi ned ned benefi ned tcostscomprisethefollowing: plan t ts t obligationiscalculatedannuallyby anindependentactuary. The presentvalue ofthedefi crecognitioncriteriamustalsobemetbefore revenue isrecognized: t liability orassetistheaggregateofpresentvalue t liability ofthedefi amountofthefi nancial instrument orashorterperiod,whereappropriate,tothenetcarrying tsunderthedefi nedbenefi nancial assetorgroupofsimilarfi nedbenefi Notes toFinancialStatements nancial liabilities arerecognized in‘Interestexpense’ ofincome usingtheEIRof inthestatement t liability orasset;and tliability t liability orasset. tliability nedbenefi tplansisactuarially determinedusingtheprojected unitcreditmethod. ts canbemeasuredreliably. ows usinginterestratesongovernment bondsthathave termstomaturity nancial assetshasbeenreducedduetoanimpairmentloss,interest nancial instruments classifi nancial instrument (for example, prepayment options), ts relatedtoadecreaseinanassetorincrease ned benefi ned Revenues andexpenses thatrelatetothesame nancialassets. ned benefi ned t obligationattheendofreporting ed asFVPLand AFS fi t assettotheceiling. ned benefi ned nancial assetsheldfor ts available inthe nancial assetor applicable,but t obligationis isrecorded isrecorded ecognized pletion of through totheir nancial es are the
105 Annual Report 2015 ate can ned ows ows ized as as ized surance ries and r paid to acted as t will be e relating excluding excluding probable iability for o the end s material, nor taxable obable that e cash fl ed on market ed on market the tax bases is higher than t or loss. t will allow the t will allow ctible temporary ow of resources ow t obligation is recognized t obligation is recognized cient taxable profi t liability or asset that arises nancial statements when an ned benefi ned t asset is limited to the present value t asset is limited to the present value ned benefi ned ects current market assessments of the market ects current ned benefi ows at a pre-tax ows rate that refl t fund or qualifying insurance policies. Plan assets are not available to Plan assets are not available t fund or qualifying insurance policies. t liability or asset is recognized as expense or income in profi as expense t liability or asset is recognized c to the liability. Where discounting is used, the increase in the provision due Where discounting is used, the increase in the provision c to the liability. ts will be required to settle the obligation and a reliable estimate can be made ts will be required to settle nancial reporting purposes. yover (NOLCO), to the extent that it is probable that suffi (NOLCO), to the extent yover ned benefi nancial statements but are disclosed unless the possibility of an outfl t obligation, the measurement of the resulting defi t obligation, the measurement of the resulting not recognized on temporary differences that arise from the initial recognition of an asset or liability that arise from the on temporarynot recognized differences in the net defi during the period t liability or asset is the change t liability) are recognized immediately in OCI in the period in which they arise. Remeasurements are not are not arise. Remeasurements they immediately in OCI in the period in which t liability) are recognized ects both the risk associated with the plan assets and the maturity or expected disposal date of those assets disposal date of those or expected the plan assets and the maturity ects both the risk associated with ts is remote. Contingent assets are not recognized but are disclosed in the fi Contingent assets are not recognized ts is remote. ned benefi owever, isowever, ned benefi ned ts is probable. t will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are deferred tax Unrecognized to be utilized. asset deferred all or part of the to allow t will be available ned benefi ts available in the form of refunds from the plan or reductions in future contributions to the plan. of refunds from the plan or reductions in future in the form ts available t or loss in subsequent periods. t or loss in subsequent t or loss. Past service amendment or curtailment when plan t or loss. Past occurs. costs are recognized ow of resources embodying economic benefi ow ed to profi t liability on the net defi or asset. Net interest cient taxable profi ow of economic benefi ow Plan assets are assets that are held by a long-term employee benefi a long-term employee that are held by Plan assets are assets of plan assets is bas value fair The Company. to the Parent be paid directly nor can they Company, the creditors of the Parent refl using a discount rate that of the plan assets certain. value If the fair and only when reimbursement is virtually when value as a separate asset at fair of the defi the present value (or, if they have no maturity, the expected period until the settlement of the related obligations). settlement period until the the expected no maturity, have if they (or, a defi required to settle reimbursed of some or all of the expenditure right to be Company’s Parent The price information. When no market price is available, the fair value of plan assets is estimated by discounting expected futur expected discounting plan assets is estimated by of value the fair price is available, When no market price information. Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized for all dedu tax for assets are recognized Deferred all taxable tax for temporary liabilities are recognized differences. Deferred of assets and liabilities and their carrying fi amounts for the regular corpor carry of minimum corporate income tax over forward of unused tax (MCIT) credits from the excess differences, Deferred tax is provided, using the balance sheet liability method, on all temporary differences at the reporting date between at the reporting date between tax using the balance sheet liability is provided, method, on all temporaryDeferred differences Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from o to be recovered and prior periods are measured at the amount expected tax the current Current for assets and liabilities of the reporting date. loss carr and unused net operating income tax (RCIT), and carry forward the deductible temporary of unused tax and unused NOLCO credits from MCIT differences against which available suffi taxable profi that it has become probable that future to the extent reporting date and are recognized reassessed at each tax asset to be recovered. deferred the taxation authorities. The taxThe rates and tax used to compute the amount are those that are enacted or substantively en laws the taxation authorities. tax, h Deferred be utilized. associates. that it is no longer pr reporting date and reduced to the extent at each tax is reviewed carrying assets The amount of deferred Service costs which include current service include current Service recogn are costs, past service costs which non-routine settlements and gains or losses on costs in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting income in a transaction that is not a business combination and, at the time of the transaction, affects expense in profi expense defi Net interest on the net bonds to the net defi rate based on Philippine government applying the discount is determined by which from the passage of time income. in domestic subsidia associated with investments tax on non-taxable liabilities are not provided temporaryDeferred differences benefi ( of the asset ceiling in the effect change assets and any on plan and losses, return gains comprising actuarial Remeasurements net interest on defi reclassifi of economic benefi Income Taxes embodying economic benefi infl of the amount of the obligation. Where the Group expects some or all of a provision to be reimbursed, for example, under an in example, to be reimbursed, for some or all of a provision Where the Group expects of the amount of the obligation. contract, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expens The certain. is virtually as a separate asset but only when the reimbursement contract, the reimbursement is recognized cash fl future the expected discounting are determined by provisions the risks specifi and, where appropriate, of money time value interest expense. as an to the passage of time is recognized in the fi Contingent liabilities are not recognized to any provision is presented in the statement of income, net of any reimbursement. If the effect of the time value of money i of money of the time value statement reimbursement. If the effect is presented in the provision of income, net of any to any Deferred Tax Current Tax Employee leave l undiscounted The to the employees. are accrued as a liability are recognized when they leave entitlements to annual Employee entitlement up t services for employees rendered by the end of the annual reporting period is recognized after to be settled expected leave of the reporting period. and Contingencies Provisions and it is a result of a past event as or constructive) when the Group has a present obligation (legal are recognized Provisions that an outfl 106 Annual Report 2015 employees orthirdparties. Ifthecounterparty, condition is duringthevesting regardlessofthereason, ceasestoprovide period,theservice service Aperformance condition may beamarket ornon-market condition; and • Aperformancemay target relateto theoperationsoractivitiesofanentity, inthesamegroup ortothose ofanotherentity • isrendering service; Aperformancemustbemetwhilethecounterparty target • condition; Aperformanceaservice conditionmustcontain • • which arevesting conditions,including: This improvement isappliedprospectively andclarifi PFRS 2, They include: Cycle 2010–2012 fi PFRSs to These improvements areeffective fromJuly 1,2014 andtheGrouphasappliedtheseamendmentsfor thefi Improvements Annual This amendmentisnotrelevant totheGroup,sincenoneofentitieswithinGrouphasdefi service. This amendmentiseffective for annualperiodsbeginningonorafter July 1,2014 costintheperiodwhich isrendered,insteadofallocatingthecontributionstot as areductionintheservice theservice ispermitted anentity if theamountofcontributionsisindependentnumber years torecognize ofservice, such c theycontributions arelinkedshouldbeattributed asanegative toservice, benefi toperiodsofservice PAS 19 toconsidercontributionsfromemployees requiresanentity orthirdpartieswhenaccountingfor defi from thefi Assets andincomearisingfromfi Activities Fiduciary location). Therefore, geographicalsegmentinformation isnolongerpresented. on businesssegmentsispresentedinNote30. The Group’s revenue producing assetsarelocatedinthePhilippines(i.e.,oneg with each segmentrepresenting astrategicbusinessunitthatoffers different different productsand serves markets. Financia The Group’s operatingbusinessesareorganized prov andmanaged separatelyaccordingtothenature oftheproductsandservices Segment Reporting event after thereportingdate. Parent Company anditssubsidiaries.Dividendsdeclaredduringtheyear thatareapproved after thereportingdatearedealtw whenapprovedDividends oncommonsharesarerecognizedanddeductedfromequity asaliability by therespective shareholders Dividends onCommonShares The Parent Companydilutive hasnooutstanding potentialcommonshares. year, ifany. duringtheyearoutstanding after givingretroactive effect tostock splits,stock dividendsdeclared andstock rightsexercise Basic earningspershare(EPS)iscomputedby dividingnetincomefor theyear by theweighted average numberofcommonshares Earnings perShare authority.liabilities anddeferred andthesametaxation entity taxesrelatetothesametaxable Deferred assetsanddeferred tax liabilitiesareoffset tax ifalegallyenforceable rightexists tosetoff assets current tax anddeferredCurrent tax relatingtoitemsrecognizedisalsoandnotinthe statem tax directlyinequity settled, laws) thathave rates(andtax basedontax beenenactedorsubstantivelyatthereportingdate. Deferred ratesthatareapplicabletotheperiodwhenassetisrealized assetsandliabilitiesaremeasuredatthetax tax Any postyear-end events thatprovide additionalinformation abouttheGroup’s positionatthereportingdate(adjustingevent) Events after theReporting Period Amendments toPAS 19, The nature andtheimpactofeach newandamendmentaredescribedbelow: standard 1,2015.January The Groupappliedfor thefi New and Amended Standards andInterpretations statements. in theGroup’s fi theseamendmentshave stated, no impactontheGroup’s Unlessotherwise nancial statements. consolidatedfi Share-based Payment – Defi – Payment Share-based nancial statements wheretheParent nancialstatements Company actsinafi nancial statements. Postnancial statements. year-end events thatarenotadjustingevents, ifany, aredisclosedwhenmaterialtothefi Defi andamendments,which standards rst timecertain areeffective for annualperiodsbeginningonorafter ned Benefi ned toreturn activitiestogetherwithrelatedundertakings suchduciary assetstocustomersareexcluded Notes toFinancialStatements nition of Vesting Condition Vesting of nition t Plans: Employee Contributions Employee Plans: t es various issuesrelatingtothedefi duciary capacity such capacity asnominee,trustee duciary oragent. conditions nitions ofperformance andservice ned benefi t. These amendmentsclarifythat, t planswithcontributionsfrom rst timeintheseconsolidated ned benefi nancial statements. statements. nancial t plans. Where the against current tax againstcurrent tax or the liability is or theliability ent ofincome. he periodsof arerefl not satisfi l information d duringthe ontributions eographical ; ith asan nancial ected of the ided, ed.
107 Annual Report 2015 ief ed es nal nal fi stage e chief e chief pletion, nancial ials and entity is t clarifi l the fi d fi ., property, ., property, ce between state directly n it becomes services in PAS services in PAS nancial assets and nancial statements. nancial statements are or not t or loss whether consolidated rst time in these Revaluation Method – Proportionate Restatement of Accumulated description of ancillary 3, and not the es that PFRS services in PAS nancial statements itself. of the joint arrangement es that a management entity, which is an entity that provides key management is an entity key that provides which es that a management entity, es in PAS 16 and PAS 38 that the asset may be revalued by reference to the observable reference by be revalued asset may 38 that the PAS and 16 es in PAS es the following regarding the scope exceptions within PFRS 3: within PFRS exceptions regarding the scope es the following es that the portfolio exception in PFRS 13 can be applied not only to fi can be applied 13 in PFRS exception es that the portfolio ed as equity is subsequently measured at fair value through profi value ed as equity fair measured at is subsequently nancial statements of the Group. Agreements for the Construction of Real Estate Financial Instruments: Recognition and Measurement. es as construction contract to be accounted for under PAS 11 or involves rendering of services in which rendering of services in which or involves 11 under PAS contract to be accounted for es as construction FairValue Measurement – Portfolio Exception Operating Segments – Aggregation of Operating Segments and Reconciliation of theTotal of the Reportable Segments’ Assets Business Combinations – Scope Exceptions for Joint Arrangements Business Combinations – Accounting for Contingent Consideration in a Business Combination Investment Property Related Party Disclosures – Key Management Personnel Property, Plant and Equipment, and PAS 38, Intangible Assets – description of operating segments that have been aggregated and the economic characteristics (e.g., margins) us sales and gross and the economic characteristics been aggregated segments that have description of operating segments are ‘similar’. to assess whether the segment liabilities. for similar to the required disclosure operating decision maker, nancial liabilities, but also to other contracts within the scope of PAS 39. within the scope of PAS nancial liabilities, but also to other contracts nancial statements. Unless otherwise stated, these amendments have no impact on the Group’s consolidated fi nancial statements. Unless otherwise no impact on the Group’s stated, have these amendments to the Entity’s Assets Depreciation and Amortization fi 40, PAS where the risks and reward of ownership are transferred to the buyer on a continuous basis will also be accounted for based on on a continuous basis will also be accounted for to the buyer are transferred of ownership where the risks and reward of this interpretation unti the effectivity deferred Standards SEC and the Financial Reporting Council have The of completion. except when such contract qualifi when such except of services mater provision based on stage with the construction is recognized of completion. Contracts involving case revenue 40, is used to determine if the transaction is the purchase of an asset or business combination. The description of ancillaryThe of an asset or business combination. the purchase 40, is used to determine if the transaction is statements as the Group’s property, plant and equipment and intangible assets are not carried at revalued amounts. plant and equipment and intangible at revalued assets are not carried property, statements as the Group’s 24, PAS and clarifi amendment is applied prospectively The plant and equipment). plant and equipment). property (i.e., property, property and owner-occupied between investment 40 only differentiates Effective Yet Issued but Not Standards fi up to the date of issuance of the Group’s standardsThe and interpretations effective, that are issued, but not yet these standards, become effective. Group intends to adopt The if applicable, when they disclosed below. Deferred Philippine Interpretation IFRIC 15, upon com of real estate only be recognized on construction interpretationThe requires that revenue or through subcontractors. requirements of the of the and an evaluation Standards (IASB) Accounting Board standard the International is issued by Revenue standard against the practices of the Philippine real estate of the interpretation industryAdoption whe Revenue is completed. impact on the fi any will not have effective This interpretation covers accounting for revenue and associated expenses by entities that undertake the construction of real e the construction entities that undertake by and associated expenses revenue accounting for interpretationThis covers the gross and carrying amounts of the asset. The adoption of this amendment did not have any impact in the Group’s consolidate Group’s impact in the any did not have adoption of this amendment The the gross and carrying of the asset. amounts fi include: They 3, PFRS and clarifi amendment is applied prospectively The property (i.e property and owner-occupied between the investment 40 differentiates description of ancillaryThe services in PAS The amendment is applied prospectively and clarifi amendment is applied prospectively The The amendment is applied retrospectively and clarifi amendment is applied retrospectively The personnel services, is a related party subject to the related party disclosures. In addition, an entitymanagement that uses a Annual Improvements the fi these amendments for and the Group has applied 1, 2014 from July are effective improvements These to PFRSs (2011–2013 Cycle) • • 3. of PFRS are outside the scope not just joint ventures, arrangements, Joint the fi applies only to the accounting in scope exception This The amendment is applied retrospectively and clarifi is applied retrospectively amendment The that a contingent consideration that is not classifi consideration that that a contingent 39, scope of PAS within the it falls 8, PFRS that: and clarify are applied retrospectively amendments The • criteria in the standard, management in applying the aggregation entity An including a br must disclose the judgments made by data either the gross or the net carrying on depreciation or amortization is the differen amount. In addition, the accumulated management services. for incurred required to disclose the expenses 13, PFRS PFRS 3, PFRS I 1, 2014. July date is on or after the acquisition which for business combinations for prospectively is applied amendment The • to total reconciliation of segment assets the reconciliation is reported to th assets is only required to be disclosed if The 16, PAS 108 Annual Report 2015 PAS 27, venture. Group sincenoneoftheentitieswithinisaninvestment nordoestheGrouphave entity investment associates entity These amendmentsareeffective for annualperiodsbeginningonorafter 1,2016. January These amendmentsarenotapplicablet PFRS 11, permitted. These amendmentswillnothave any impactontheGroup’s consolidatedfi change retrospectively. The amendmentsareeffective for annualperiodsbeginningonorafter 1,2016, January withearlyadop Entities alreadyapplyingPFRS andelectingtochange methodinitsseparatefi totheequity their separatefi The amendmentswillallowmethodtoaccountfor entitiestousetheequity investments insubsidiaries,jointventures andasso as theGroupdoesnothave any bearerplants. beginning onorafter 1,2016, January withearlyadoptionpermitted. These amendmentsarenotexpected tohave any impact to Government GrantsandDisclosureofGovernment willapply.Assistance The amendments areretrospectively effective for annual in thescopeofPAS 41measuredatfair value lesscosts tosell.For government grantsrelatedtobearerplants,PAS 20, Acco the costmodelorrevaluation model(after maturity). The amendmentsalsorequire that producegrows onbearerplantswi will apply. After initial recognition, bearerplantswillbemeasuredunderPAS 16 ataccumulatedcost (before maturity) andu amendments, biologicalassetsthatmeetthedefi The amendmentschange theaccountingrequirementsfor biologicalassetsthatmeetthedefi 16, PAS would notapply. PFRS 14 iseffective for annualperiodsbeginningonorafter 1,2016. January SincetheGroupisanexisting PFRS preparer, t on thenature of, andrisksassociatedwith,theentity’s rate-regulationandtheeffects ofthatrate-regulationonitsfi ofincomeandothercomprehensiveaccount balancesasseparatelineitemsinthestatement income. The requiresdiscl standard deferral offi present theregulatory accountsasseparatelineitemsonthestatement existing deferral accountingpoliciesfor regulatory accountbalancesuponitsfi PFRS 14 thatallows isanoptionalstandard entity, whoseactivities aresubjecttorate-regulation,continueapplyingm 1, PAS PFRS 10, Effective 1,2016 January method, to retain thefairmethod, toretain value measurementappliedby theinvestment associateorjointventure entity toitsinterestsinsu also allow aninvestor (thatisnotaninvestment andhasaninvestment entity associateorjointventure), entity when applyin that isnotaninvestmenttothe itselfandthatprovidesparentisconsolidated. entity supportservices Th ofaninvestment thatmeasuresallofitssubsidiariesatfairanin is asubsidiary entity value andthatonlyasubsidiary These amendmentsclarifythattheexemption inPFRS 10 frompresentingconsolidatedfi the ConsolidationException (Amendments) • That oftheirfi That entitiesshallnotreducetheunderstandability specifi • PFRS. They clarifythefollowing: The anddisclosurerequirements i amendmentsareintendedtoassistentitiesinapplyingjudgmentwhenmeetingthepresentation (as defi that PFRS 14, its consolidatedfi not affect anentity’s accountingpoliciesorestimates. The Groupiscurrently assessingtheimpactoftheseamend Early applicationispermitted andentitiesdonotneedtodisclosethatfact astheamendmentsareconsideredtobeclarifi That theshareofOCIassociatesandjointventures accountedformethodmustbepresentedinaggregatea usingtheequity That entitieshave fl • • These amendmentsarenotexpected tohave any impacttotheGroup. same jointoperationandareprospectively effective for annualperiodsbeginningonorafter 1,2016, January withearlyadopt The amendmentsapplytoboththeacquisitionofinitialinterestinajointoperationandany additional parties sharingjointcontrol,includingthereportingentity, areundercommoncontrolofthesameultimatecontrollingparty. Inaddition,ascopeexclusionjoint controlisretained. hasbeenaddedtoPFRS 11 tospecifythattheamendmentsdonotapply previously heldinterestinajointoperationisnotremeasuredontheacquisitionofanadditionalsame
is accountingfor theacquisitionofaninterestinajointoperation,which ofthejointoperationconstitutes theactivity immaterial information; oraggregatingmaterialitemsthathave different natures orfunctions single lineitem,andclassifi Presentation of Financial Statements Statements Financial of Presentation ned by PFRS 3),toapplytherelevant PFRS 3principlesfor businesscombinationsaccounting. The amendmentsalsoclarifytha Property, Plant and Equipment, and Plant Property, Separate Financial Statements - Equity Method in Separate in Method Equity - Statements Financial Separate Joint Arrangements Joint Regulatory Deferral Accounts Deferral Regulatory Consolidated Financial Statements Financial Consolidated nancialstatements. c line items in the statement of income and OCI and the statement offi ofincomeandOCIthestatement clineitemsinthestatement nancialstatements. exibilityastotheorderinwhich they presentthenotestofi - Accounting for Acquisitions ofInterests(Amendments) The amendmentstoPFRS 11 requireajointoperator edbetweenthoseitemsthatwillornotbesubsequentlyreclassifi Notes toFinancialStatements and PAS 41, PAS and – DisclosureInitiative (Amendments) , andPAS 28, nition ofbearerplantswillnolongerbewithinthescopePAS 41. Instead,PAS 16 Agriculture - Agriculture Investments in Associates and Joint Ventures Joint and Associates in Investments Bearer Plants Financial Statements (Amendments) FinancialStatements bynancial statements eitherobscuringmaterialinformation with rst-time adoptionofPFRS. EntitiesthatadoptPFRS 14 must nancialstatements nancialstatements. nancial positionandpresentmovements inthese nancialpositionmay bedisaggregated nancial statements applies to a parent entity that appliestoaparententity nancial statements willhavenancial statements toapplythat nition of bearer plants.Underthe edtoprofi –Investment Entities: Applying torloss. nancial statements. statements. nancial vestment entity interestsinthe cations thatdo operation while e amendments ion permitted. his standard his standard g the equity g theequity abusiness sing either whenthe bsidiaries. the Group unting for ments on ost ofits ll remain ciates in periods or joint osures o the tion s a t a n
109 Annual Report 2015
a d. ances re not roup is nancial for high for adopted whether There is, There irements 2016, with 2016, continuing measuring RS. Either RS. its entirety. its entirety. 0 and 2013) 0 and 2013) ects all phases nancial liabilities. The The nancial liabilities. nancial liabilities are not nancial asset. An entity nancial asset. , and all previous versions versions , and all previous ts that are generated from ts that are generated es that changing the disposal the disposal es that changing nancial assets and impairment nancial assets and fi nancial report’ a result, As use of the asset. are consumed through ts that cant update to the information reported in the most recent cant update to the information ects a pattern of economic benefi of economic ects a pattern Amortization and Methods of Depreciation Acceptable of cation ects the consideration to which an entity expects to be entitled an entity expects ects the consideration to which cation and measurement of the Group’s fi cation and measurement of the Group’s ve-step model that will apply to revenue arising from contracts with model that will apply to revenue ve-step - Clarifi are included within the greater they nancial statements and wherever cation and measurement, impairment, and hedge accounting. 9 is PFRS comparative disclosures are not required to be provided for any period any for disclosures are not required to be provided comparative cation and measurement of the Group’s fi cation and measurement of the Group’s Financial Instruments: Recognition and Measurement rst applies the amendments. owever, owever, es that the required interim disclosures must either be in the interim fi es that the required interim disclosures must either be in the interim Revenue from Contracts with Customers es that the disclosures on offsetting of fi es that the disclosures on offsetting es that changing from a disposal through sale to a disposal through distribution to from a disposal through sale to a disposal es that changing Intangible Assets depth of high quality corporate bonds is assessed based on the currency es that market cation. , and PAS 38, , and PAS nancial report unless they provide a signifi provide nancial report unless they nal version of IFRS 9, Financial Instruments. The new standard 9) refl (renamed as PFRS new The 9, Financial Instruments. of IFRS nal version ts – regional market issue regarding discount rate es that a servicing contract that includes a fee can constitute continuing involvement in a fi continuing involvement es that a servicing can constitute contract that includes a fee nancial assets, but will have no impact on the classifi nancial assets, but will have ed retrospective application is required for annual periods beginning on or after January 1, 2018. Early adoption is permitte January 1, 2018. annual periods beginning on or after is required for application ed retrospective Applicability of the Amendments to PFRS 7 to Condensed Interim Financial Statements Financial Instruments Non-current Assets Held for Sale and Discontinued Operations – Changes in Methods of Disposal Interim Financial Reporting – disclosure of information ‘elsewhere in the interim fi Employee Benefi nancial report (e.g., in the management commentary or risk report). Property, Plant and Equipment Financial Instruments: Disclosures – Servicing Contracts nancial instruments project and replaces PAS 39, project and replaces PAS nancial instruments beginning before the annual period in which the entity fi the annual period in which beginning before 7 - PFRS statements or incorporated by cross-reference between the interim fi statements cross-reference or incorporated by interim fi January 1, 2018 Effective 9, PFRS IFRS 15 was issued in May 2014 by the IASB and establishes fi a new the IASB by 2014 issued in May was 15 IFRS at an amount that refl is recognized revenue 15, customers. Under IFRS therefore, no interruption of the application of the requirements in PFRS 5. The amendment also clarifi The 5. in PFRS of the application of the requirements no interruption therefore, of classifi the date method does not change When there is no deep market the obligation is denominated, rather than the country where the obligation is located. in which bond rates must be used. government quality corporate bonds in that currency, 34, PAS and clarifi amendment is applied retrospectively The issued the fi the IASB 2014, In July to approach a more structured provide 15 principles in IFRS The goods or services to a customer. transferring for in exchange and recognizing revenue. recognition requirements under IF standard revenue is applicable to all entities and will supersede all current revenue new The This amendment is applied prospectively and clarifi amendment is applied prospectively This owners and vice-versa should not be considered to be a new plan of disposal, rather it is a continuation of the original plan. plan of disposal, rather it is a new should not be considered to be and vice-versa owners and clarifi amendment is applied retrospectively This The amendment is applied prospectively and clarifi is applied prospectively amendment The 7, PFRS in asset that is derecognized in a transferred continuing involvement any 7 requires an entity disclosures for PFRS to provide The amendment clarifi The 7 in order to assess in PFRS continuing involvement against the guidance for and arrangement the fee of must assess the nature servicing contracts constitute that the assessment of which be applied such amendment is to The the disclosures are required. H will need to be done retrospectively. involvement required in the condensed interim fi annual report. 19, PAS a full or modifi date once standard and plans to adopt the new on the required effective 15 assessing the impact of IFRS Group is currently The locally. PAS 16, 16, PAS of PFRS 9. The standard introduces new requirements for classifi standard requirements for The introduces new of PFRS 9. with early application permitted. January 1, 2018, annual periods beginning on or after for effective hedge accounting, the requ For is not compulsory. information comparative application is required, but providing Retrospective are generally applied prospectively, with some limited exceptions. Early application of previous versions of PFRS 9 (2009, of PFRS 201 versions Early application of previous with some limited exceptions. are generally applied prospectively, (Amendments) refl 38 that revenue and PAS 16 principle in PAS clarify the amendments The Group did not early adopt PFRS 9. The 1, 2015. February if the date of initial application is before is permitted on the classifi an effect 9 will have adoption of PFRS The fi methodology for adoption will also have an effect on the Group’s application of hedge accounting and on the amount of its credit losses. The G The and on the amount of its credit losses. application of hedge accounting on the Group’s an effect adoption will also have assessing the impact of adopting this standard.currently Standard 15, International Financial Reporting (IFRS) of the fi operating a business (of which the asset is part) rather than the economic benefi part) rather than the economic the asset is business (of which operating a only be used in very limited circumst plant and equipment and may property, method cannot be used to depreciate a revenue-based January 1, annual periods beginning on or after for prospectively amendments are effective The intangibleassets. to amortize early adoption permitted. These amendments are not expected to have any impact to the Group given that the Group has not used impact to the Group given any to have are not expected amendments These early adoption permitted. assets. method to depreciate its non-current revenue-based cycle) (2012-2014 to PFRSs Annual Improvements and a January 1, 2016 annual periods beginning on or after for are effective cycle) (2012-2014 to PFRSs Annual Improvements The include: They a material impact on the Group. to have expected 5, PFRS 110 Annual Report 2015 3. c. b. a. Judgments future events thatarebelieved tobereasonableunderthecircumstances. Judgments andestimatesarecontinuallyevaluated andarebasedonhistoricalexperience andotherfactors, includingexpectati change injudgmentsandestimates arerefl Future events may occurwhich willcausethe judgments andassumptionsusedinarriving attheestimatestochange. The effect reported amountsofassets,liabilities,incomeandexpenses anddisclosureofcontingentassetsliabilitiesat The preparationofthefi SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES impact ofPFRS 16 ontherequiredeffective andplanstoadoptthenew standard dateonceadoptedlocally. retrospective oramodifi have alsoadoptedIFRS 15, The newiseffective standard for annualperiodsbeginningonorafter 1,2019. January Entitiesmay earlyadoptIFRS 16 buton value. Lessors, h The accountingbyunchanged lessorsissubstantially theprinciplesoflessoraccountingun asthenewcarries forward standard Leases withatermof12 monthsorlessfor which theunderlyingassetisoflow value areexempted fromtheserequirements. their balancesheets,andsubsequently, willdepreciatetheleaseassetsandrecognize intereston theleaseliabilitiesin lessees willapplythesingle-assetmodel.Underthismodel,recognize theassetsandrelatedliabilities for mos Under thenewlesseeswillnolongerclassifytheirleasesaseitheroperatingorfi standard, andtherelatedInterpretations. current leasesstandard, 13,On January 2016, theIASB issueditsnewIFRS standard, 16, Leases, which replacesInternational Accounting (IAS) Standards IFRS 16, d. the economiccharacteristics andrisksoftheembedded derivative arenotcloselyrelated totheeconomiccharacteristic oft • considerations of liquidity andmodelinputssuchconsiderations ofliquidity ascorrelation andvolatility for longerdatedderivatives. where possible,butthisisnotfeasible, fair adegreeofjudgmentisrequiredinestablishing values. The judgmentsin valuation approaches thatincludetheuseofmathematicalmodels. The markets inputstothesemodelsare takenfromobservable derived fromactive markets, they aredeterminedusingavarietyofvaluation techniques tothemarket acceptable asalternativ Where thefair values offi thecurrency inwhich receiptsfromoperatingactivitiesareusuallyretained. thecurrency inwhich fundsfromfi • • thecurrency thatmainlyinfl • that arerelevant totheentity. Inmakingthisjudgment,theGroupconsidersfollowing: functional currency such thatitmostfaithfully representstheeconomic effects oftheunderlyingtransactions, events andcon PAS 21, and ability toholdsuchand ability investments tomaturity. IftheGroupfails tokeep theseinvestments tomaturity otherthanincerta The classifi part of AFS fi -forcircumstances example, sellinganinsignifi following conditionsaremet: An embeddedderivative isseparatedfromthehostfi if thereisachange inthetermsofcontractthatsignifi The Groupassesses theexistence ofanembeddedderivative whenitfi derivatives Embedded fi HTM length basis. and regularlyavailable, andwhetherthosepricesrepresentactual andregularlyoccurring market transactionsconductedonan in theevaluation onwhetherafi The Groupclassifi fi of value Fair currency Functional Leases host contract; sales pricesfor itsfi owever, nancial assets nancial The Effects of Changes in Foreign Exchange Rates Exchange Foreign in Changes of Effects The cation toHTM fi nancialassets. The investments would therefore bemeasuredatfair value andnotatamortized cost. nancial instruments nancial will berequiredtodisclosemoreinformation intheirfi es fi es nancial statements inaccordancewithPFRSnancial statements requirestheGrouptomake judgmentsandestimatesthataffect the ed retrospective approach, transitionreliefs. with optionstousecertain The Groupiscurrently assessingthe nancial assetsby evaluating, amongothers,whethertheassetisquotedornotinanactive market. Included Revenue fromContractswithCustomers. When adoptingIFRS 16, ispermitted anentity touseeitherafull nancial instruments and services aredenominatedandsettled); nancialinstruments andservices nancial assetsandfi nancial assetsrequiressignifi Notes toFinancialStatements nancialassetisquotedinanactive market isthedeterminationofwhetherquotedpricesarereadily uences salespricesfor fi ectedinthefi nancingactivitiesaregenerated;and nancial liabilitiesrecordedonthebalancesheetordisclosedinnotescannotbe cant amountcloseto maturity -itwillberequiredtoreclassifytheentireportfolio as nancial statements asthey nancialstatements becomereasonablydeterminable. nancial ornonfi cant judgment.Inmakingthisjudgment,theGroupevaluates itsintention cantlymodifi (thiswilloftennancial instruments andservices bethecurrency inwhich , requiresmanagementtouseitsjudgmentindeterminingtheentity’s particularlyontheriskexposurenancial statements, toresidual rst becomes a party to thecontractandperformsrst becomes aparty reassessment nancial contractandaccountedfor asaderivative ifallofthe esthecashfl ows that would otherwise berequired. ows thatwould otherwise nance leasesinaccordance withIAS 17. Rather, ir profi reporting date. t leaseson der IAS 17. in specifi t orloss. ly ifthey s ofany 17, the ditions ons of arm’s clude he c e
111 Annual Report 2015
s e he ed the on of oan or r value r value lessee nancial laims has in country and future and future at it retains cant relative relative cant ows. ed that it has the than the ciently lower nancial models use only cant’ or ‘prolonged’ requires nancial statements continue nancial instruments (Note 5). nancial instruments nition of a derivative; and derivative; nition of a c allowance, have a greater risk of default a greater risk of default have c allowance, ed before they are used and are calibrated are used and are they ed before assets or liabilities at FVPL. Changes nancial cant or prolonged decline in the fair values below below values cant or prolonged decline in the fair ows when determining the level of allowance required. Such required. Such of allowance when determining the level ows cant by considering the extent to which the expected future cash cash future expected the to which considering the extent by cant ed as requiring a specifi ed structural weaknesses or deterioration in cash fl weaknesses ed structural nancial models are certifi cant loans and receivables, the Group also makes a collective impairment a collective the Group also makes loans and receivables, cant is signifi ows cally identifi to cash fl cation that future results of operations could be materially affected by changes in the estimates or in changes by could be materially affected results of operations that future nancial assets designated at FVPL are disclosed in Note 8. nancial assets designated cant’ generally as 20.00% or more of the original cost of investment, and ‘prolonged’ as greater cant’ generally as 20.00% or more of the original cost of investment, cant risks and rewards of ownership of the properties it leases are not transferrable to the Group. of the properties it leases are not transferrable of ownership cant risks and rewards ows on the contract. ows owever, owever, nancial models) are used to determine fair values, they are validated and periodically reviewed by qualifi by and periodically reviewed are validated they values, nancial models) are used to determine fair areas such as credit risk (both own and counterparty), volatilities and correlations require management to and correlations and counterparty), as credit risk (both own volatilities areas such ect actual data and comparative market prices. To the extent practical, the fi extent the To prices. data market and comparative ect actual c allowance against individually signifi c allowance cant doubt upon the Group’s ability to continue as going concern. Therefore, the fi Therefore, ability to continue as going concern. cant doubt upon the Group’s nancial instruments that are not quoted in active markets are determined by using valuation techniques. Where techniques. using valuation by are determined markets that are not quoted in active nancial instruments owever, owever, nancial instruments cant risks and rewards of ownership of these properties which are leased out under operating leases. are leased out under of these properties which of ownership cant risks and rewards ows and discount factors for unquoted equities. for and discount factors ows ows associated with the embedded derivative, the host contract or both have changed and whether the change is signifi and whether the change changed the host contract or both have with the embedded derivative, associated ows fl to the previously expected cash fl expected to the previously as assets when the fai are carried in the statement are included of income. Derivatives of embedded derivatives values in fair is negative. value liabilities when the fair and as is positive fi carrying of the Group’s The values Embedded derivatives that are bifurcated from the host contracts are accounted for as fi contracts are accounted for that are bifurcated from the host Embedded derivatives The Group determines whether a modifi Group determines The Impairment of AFS equity investments Credit losses on loans and receivables Fair value of fi Going concern Contingencies Operating leases to be prepared on a going concern basis. The Group’s management has made an assessment of its ability to continue as a going concern and is satisfi Group’s The resources to continue in business for the foreseeable future. Furthermore, management is not aware of any material uncertaintie of any management is not aware Furthermore, future. the foreseeable resources to continue in business for that may cast signifi that may make estimates. Changes in assumptions about these factors could affect reported fair value of fi value reported fair could affect about these factors estimates. Changes in assumptions make observable data, h to ensure that outputs refl personnel independent of the area that created them. All fi them. personnel independent of the area that created cash fl than 12 months. In addition, the Group evaluates other factors, including normal volatility in share price for quoted equities volatility in share price for including normal other factors, months. In addition, the Group evaluates than 12 estimates are based on assumptions about a number of factors. Actual results may also differ, resulting in future changes to t changes resulting in future also differ, results may Actual estimates are based on assumptions about a number of factors. as impaired when there has been a signifi AFS equity investments Group treats The determination of what is ‘signifi The of impairment exists. evidence their costs or where other objective Group treats ‘signifi The judgment. The Group reviews its loans and receivables at each reporting date to assess whether an allowance for credit losses should be for reporting date to assess whether an allowance at each its loans and receivables Group reviews The management is judgment by thereto in the statement of income. In particular, changes recorded in the balance sheet and any cash fl required in the estimation of the amount and timing of future The fair values of fi values fair The evaluation of the terms and conditions of the arrangements (i.e., the lease does not transfer the ownership of the asset to the the ownership does not transfer (i.e., the lease the terms and conditions of the arrangements of evaluation to be suffi the asset at a price that is expected the end of the lease term, the lessee has no option to purchase by th economic life), the major part of the asset’s and the lease term is not for exercisable at the date the option is value fair all the signifi Group has determined, based on the evaluati The its operations. Group has also entered into leases on premises it uses for The the lease agreement, that all signifi (e.g., fi techniques valuation allowance. In addition to specifi The Group is currently involved in various legal proceedings. The estimate of the probable costs for the resolution of these c estimate of the probable costs for The legal proceedings. in various involved Group is currently The The Group has entered into commercial property leases on its investment property portfolio. The Group has determined based on Group has The property portfolio. into commercial property Group has entered leases on its investment The although not specifi which, assessment on exposures • • meet the defi would as the embedded derivative with the same terms a separate instrument FVPL. at is not recognized or combined instrument the hybrid upon an analysis and is based in these matters defense in consultation with outside counsel handling the Group’s been developed on the fi effect material adverse a that these proceedings will have does not believe Group currently The of potential results. statements. It is possible, h of the strategies relating to these proceedings. the effectiveness than when originally granted. The resulting collective allowance is based on any deterioration in the internal rating of the l is based on any allowance resulting collective The than when originally granted. investment since it was granted or acquired. These internal ratings take into consideration factors such as any deterioration as any such internal ratings take into consideration factors These granted or acquired. since it was investment ar Company credit losses of the Group and the Parent for and the related allowance carrying of loans and receivables The values disclosed in Notes 9 and 15. risk, industry, and technological obsolescence, as well as identifi obsolescence, as well and technological risk, industry, b. e. Estimates a. g. g. f. c. 112 Annual Report 2015 e. d. f. f. g. h. equipment) andconsidersthefollowing impairmentindicators: The Groupalsoassessesimpairmentonitsnonfi following: Company which considersimportant couldtriggeranimpairmentreview onitsinvestments insubsidiariesandassociateincludet amountoftheassetmay notberecoverable. indicate thatthecarrying circumstances Among others,thefactors that theParent The Parent Company assessesimpairmentonitsinvestments insubsidiariesandassociatewhenever events orchanges in disclosed inNotes8and15. valuesThe of investments carrying AFS equity andtherelatedallowance for impairmentoftheGroupandParent Company are based onavalue-in-use calculationusingcashfl from theaverage increaseinannual incomeoftheCGUsduringlast5years. The recoverable amountoftheCGUisdetermine cash fl Group estimatesthediscountrateusedforof netpresentvalue thecomputation by referencecostofcapital. toindustry of goodwillandbranch licensesisthehigherbetweenitsfair value lesscostsofdisposalanditsvalue inuse.For value in are written down for impairmentwheretherecoverable value isinsuffi The Groupconductsanannualreview for any impairmentinthevalue ofgoodwillandbranch licenses.Goodwillandbranch licen materially affect amountoftheassetbeingassessed. thecarrying expected tobegeneratedfromthecontinueduseofasset. The Groupisrequiredtomake estimatesandassumptionsthatcan assets isdeterminedbasedontheasset’s valuewhich inusecomputation considersthepresentvalue ofestimatedfuture cashfl properties whererecoverable amountisdeterminedbasedonfair value lesscosttosell,therecoverable amountofallotherno An impairmentlossisrecognized whenever amountofanassetexceeds thecarrying itsrecoverable amount. Except for investmen The carrying valuesThe oftheGroup’s carrying goodwillandbranch licensesaredisclosedinNote13. project cashfl fi investments aredisclosedinNote8. As ofDecember31,2015 and2014, HTM and AFS debtinvestments were unimpaired. valuesThe ofHTM carrying and AFS debt The Groupdeterminesthat AFS debtinvestments areimpairedbasedonthesamecriteriaasloansandreceivables. the calculation. the expected employee benefi The assumeddiscount rateswere determinedusingthemarket yieldsonPhilippinegovernment bondswithtermsconsistent expense used incalculatingsuch amounts. increase. These assumptionsinclude,amongothers,discountrates,and salary retirement and The determination oftheGroup’s netplan assetsandannualretirementexpense assumpt isdependent ontheselectionofcertain assets plan Net licenses branch and goodwill of Impairment nonfi other and associates and subsidiaries in investments on Impairment fi pattern ofeconomicbenefi furniture, estimates arereviewedpremises, periodicallytoensurethattheperiodofdepreciationandamortizationareconsistentwithexpected bank of lives The Groupestimatestheusefullives ofitsbankpremises,furniture, fi useful Estimated investments debt AFS and HTM of Impairment • signifi • signifi • signifi recurring net losses;and • signifi deterioratingorpoorfi • • premises, furniture, fi increase therecordeddepreciationandamortizationexpense anddecreasenoncurrent assets. The estimatedusefullives ofbank A reductionintheestimatedusefullives ofbankpremises,furniture, fi 11 and12, respectively. valuesThe oftheGroup’s carrying investments insubsidiariesandassociateothernonfi ve-year period.Key assumptionsinvalue-in-use calculationofCGUsaremost sensitive todiscountratesandgrowth ratesuse or associateduringtheperiodinnearfuture, inwhich operates. thesubsidiary ows fromthebusinessareestimatedbasedontheoreticalannual incomeoftheCGUs. Average growth rateisderived cant negative industry oreconomictrends. cantnegative industry cantchanges inthemanner ofusetheacquiredassetsorstrategyfor overall business;and cantunderperformance relative toexpected historicalorprojectedfuture operatingresults; cant changes onthetechnological, market, economic,orlegalenvironment which hadanadverse effect onthesubsidiary ows. xtures andequipment,investment propertiesaredisclosed inNote2. tsfromtheitemsofbankpremises,furniture, fi nancialcondition; Notes toFinancialStatements t payout asofthebalancesheetsdate.Refer toNote23for ontheassumptionsusedin thedetails nancial assets (e.g., investmentnancial assets(e.g., properties andbankpremises,furniture, fi ow projectionsfromfi xtures and equipment, and investment properties investment and equipment, and xtures cient to support their carrying value. cient tosupporttheircarrying The recoverable amount nancial budgetsapproved by seniormanagementcovering a xtures andequipment,investment properties. These nancial assets nancial xtures andequipment,investment propertieswould xtures andequipment,investment properties. nancial assetsaredisclosedinNotes10, xtures and nfi use,the nancial Future ows ions d to ses he d t
113 Annual Report 2015
rust rust 2014 2014 nancial nized in nized fi le at the recurring recurring 101,610 822,179 223,600 293,850 2,115,169 1,782,761 1,910,677 5,177,601 9,295,130 8,012,435 11,353,788 37,075,238 15,836,701 P 60,543,867 391,291,418 245,257,221 325,554,827 341,084,635 349,595,044 349,493,434 P P P ized in the balance ized – t will be available against t will be available 2015 2015 66,373 741,479 355,436 5,465,417 2,201,247 2,693,764 3,337,858 77,003,616 46,834,199 10,052,891 13,945,645 19,200,544 18,422,650 360,744,179 437,042,331 259,645,008 P 396,527,212 373,603,416 396,460,839 P P P nancial instruments per category: nancial instruments – – nancial assets and liabilities at FVPL and 2014 2014 223,600 101,610 553,810 3,701,779 2,236,981 8,440,699 1,188,762 1,221,395 3,228,576 17,552,823 67,451,648 12,109,344 6,320,580 10,734,059 38,476,852 ts, accrued lease payable and accrued taxes and other and accrued lease payable ts, accrued 451,346,515 290,418,730 381,585,561 P 411,916,277 411,814,667 399,301,544 P P P 2015 Consolidated Company Parent 2015 ts and the related future tax planning strategies. ts and the related future Consolidated Company Parent 66,373 670,265 2,621,737 4,235,672 6,244,593 11,377,101 16,136,147 86,318,501 21,243,492 1,456,498 48,829,233 4,404,342 424,181,179 P 19,085,180 309,761,777 506,768,253 464,881,971 439,265,686 P 464,948,344 P P – – cient taxable income in the future to utilize its recorded deferred tax assets. Taxable Taxable tax assets. its recorded deferred to utilize cient taxable in the future income nancial reporting period. These include fi These nancial reporting period. nancial assets nancial nancial liabilities nancial nancial liabilities: nancial nancial assets nancial nancial assets. Non-recurring fair value measurements are those that another PFRS requires or permits to be recognized in the requires or permits to be recognized measurements are those that another PFRS value fair nancial assets. Non-recurring nancial assets nancial The recognized and unrecognized deferred tax in Note 26. assets are disclosed deferred and unrecognized recognized The The present value of the retirement obligation and fair value of plan assets are disclosed in Note 23. of plan assets are value and fair retirement obligation of the value present The Recognition of deferred income taxes Deferred tax assets are recognized for all unused tax losses to the extent that it is probable that taxable all unused tax profi for losses to the extent tax assets are recognized Deferred tax be assets that can to determine the amount of deferred Management discretion is required the losses can be utilized. which taxable profi of future level on the forecasted based recognized, it will be able to generate suffi Group believes The and t commissions fees, and earnings from service from interest income from lending activities income is sourced mainly charge, activities. Loans and receivables: Loans and Due from BSP assets (Note 14). * and other cash items and miscellaneous checks returned sales contract receivable, Other assets include accounts receivables, Bills payable checks Bills Manager’s Accrued interest and other expenses* * benefi employee for payable accrued exclude interest and other expenses Accrued licenses (Note 18). liabilities (Note 19). and retirement withholding taxes payable **Other liabilities exclude Subordinated debt liabilities** Subordinated Other FINANCIAL INSTRUMENT CATEGORIES FINANCIAL INSTRUMENT fi Company’s and the Parent table presents the total following carryingThe amount of the Group’s i. The Group has assets and liabilities in the consolidated balance sheets that are measured at fair value on a recurring and non- on a recurring value the consolidated balance sheets that are measured at fair Group has assets and liabilities in The FAIR VALUE VALUE MEASUREMENT FAIR AFS fi AFS fi HTM loans receivables Interbank receivables Loans and Financial assets at FVPL Due from other banks Deposit liabilities Deposit Financial liabilities Financial fi Other Financial assetsFinancial Cash and other cash items Other assets Other Accruedfi interest receivable Total Derivative liabilities liabilities Financial liabilities at FVPL: Derivative Total fi Total the consolidated balance sheet at the end of each fi the consolidated balance sheet at the end of each basis after initial recognition. Recurring fair value measurements are those that another PFRS requires or permits to be recog measurements are those that another PFRS value fair initial recognition. Recurring basis after lower of its carrying amount and fair value less costs to sell. Since the asset’s fair value less costs to sell is only recogn value fair to sell. Since the asset’s less costs of its carrying value amount and fair lower measurement is non-recurring. than its carrying value amount, that fair sheet when it is lower AFS fi sa 5 requires an entity PFRS to measure an asset held for example, consolidated balance sheet in particular circumstances. For 4. 4. 5. 5. 114 Annual Report 2015 Subordinated debt Bills payable Deposit liabilities Financial Liabilities 14) (Note receivable contracts Sales of securities. prices arenotreadilyavailable for theseassets. These arereportedatcostandnotsignifi investments orusingthediscounted cashfl estimated usingeithervaluesfromindependentpartiesoffering obtained oradjustedquotedmarket pricesofc pricingservices Others Trade-related and commercial Corporate loans loans Consumer loans 9) (Note receivables and Loans Private bonds if any. - For securitiesfor unquotedequity which noreliablebasisfor fair value measurementisavailable, thesearecarried atcostn receivable interest accrued and receivables loans interbank banks, other and BSP from due items, cash other and Cash Government HTM fi bonds Financial Assets liabilities asrefl As ofDecember31,2015 and2014, except for thefollowing fi Bifurcated embedded derivatives (included under derivative assets) assets) derivative under (included derivatives embedded Bifurcated liabilities and assets Derivative FVPL) under (included fi other instruments and (RCOCI) Derivative items cash other and checks returned assets other in receivable, included Accounts (SCR) receivable contracts sales and receivables and Loans securities Equity securities Debt The methodsandassumptionsusedby theGroupandParent Company inestimatingthefair values ofthefi Bills payable Deposit liabilities Financial Liabilities 14) (Note receivable contracts Sales Others Trade-related and commercial Corporate loans loans Consumer loans 9) (Note receivables and Loans Private bonds using inputsprovided bybanks. counterparty intoaccounttheremainingterm tomaturity ofthederivativethe reportingdate,taking assetsandliabilities. lending ratesforofloansandreceivables. similartypes estimated usingthediscountedcashfl amounts approximate theirfair values inview oftherelatively short-termmaturities oftheseinstruments. Government HTM fi bonds Financial Assets or acceptedvaluation models (eitherbasedondiscountedcashfl nancial assets (Note 8) (Note assets nancial nancial assets (Note 8) (Note assets nancial ectedinthebalancesheetsandrelatednotesapproximate theirrespective fair values: -Fair values aregenerallybasedonquotedmarket prices.Ifthemarket pricesarenotreadilyavailable, fair values are -For securities,fair publiclytradedequity valuesmarkets. arebasedonquotedpricespublishedinthePhilippineequity - Fair values arecalculatedby reference totheprevailing interestdifferential andspot exchange rateasof Notes toFinancialStatements ow methodology, wherefuture cashfl ow methodology. -Fair values areestimatedbasedonquotedmarket pricesprovided by independent parties – arigVleFair Value Carrying Value arigVleFair Value Carrying Value valuesnancial instruments, oftheGroup’s thecarrying fi 3,6,8 429,639,806 439,265,686 5,6,2 255,872,291 250,661,528 P P 2,5,7 223,257,420 220,451,670 7,0,1 363,221,514 373,603,416 2302213,564,618 12,360,222 6414653,331,599 46,421,426 8426018,330,913 18,422,650 14225P 11,422,275 8344730,991,571 28,364,417 9051018,993,875 19,085,180 31277P 13,162,777 0774111,559,856 10,757,421 ow techniques oroptionpricingmodels,as applicable). ,7,7 3,324,907 2,973,370 ,2,7 2,877,180 2,523,370 6,2 974,123 967,329 1,0 293,602 318,601 5,7 264,268 257,473 - Fair values areestimated basedonavaluation modelfromBloomberg 15074,319 71,500 2015 2015 ows arediscountedusingtheGroup’s current incremental nancial assets included in other assets assets other in included assets nancial 14,273,659 12,532,769 - Fair values ofloansandreceivables andSCRare Parent Company Consolidated cant inrelationtotheGroup’s portfolio total Carrying Value Fair Value Fair Value Carrying Carrying Value Fair Value Fair Value Carrying P 9,0,4 388,897,198 399,301,544 0,9,5 206,200,831 206,096,458 4,8,3 330,299,420 341,084,635 P 3,3,5 236,479,682 234,134,056 09843P 10,998,493 2001742,006,980 42,040,197 17409P 11,754,049 2358712,555,690 12,315,857 6741328,188,018 26,764,113 3911714,282,127 13,961,117 ,2,8 6,219,515 6,320,580 ,3,3 1,217,094 1,233,339 ,8,6 1,160,253 1,188,762 ,7,0 5,075,936 5,177,601 8,6 190,151 283,360 5,9 394,752 355,295 5,6 380,300 352,361 5,9 394,752 355,295 nancialinstruments follow: 07381,899 80,793 2014 2014 nancial assetsand et ofimpairment, - Quotedmarket 13,214,634 12,429,750 The carrying The carrying omparable
115 Annual Report 2015 ow cant in 66,373 amounts es) or 1,386,524 nted below: 14,273,659 351,153,046 448,633,681 y being valued. −P −P − P ows are discounted using the are discounted ows 448,633,681 P 333,554,480 P −P −P − P 2015 Consolidated 66,373 P 144,850 P nancial instruments by valuation technique: valuation by nancial instruments − P −P 388 594,963 − 595,351 Level 1Level 2Level 3 3 Total 2Level 1Level Level ow methodology using current credit spread for similar types spread for of credit using current methodology ow 111,470− − 111,470 556,570 − − 556,570 385,269 720,983 − 1,106,252 1,241,674 P 8,213,921 −− 8,213,921 3,324,907 − − 3,324,907 2,299,970 − − 2,299,970 ow methodology, where future cash fl where future methodology, ow P 17,598,566 P 42,067,871 12,695,531 − 54,763,402 14,273,659 P 29,258,609 10,934,809 − 40,193,418 P P - Carrying amounts approximate fair values due to the short-term nature of due to the short-term nature values - Carrying fair amounts approximate −− 258221255,872,291 − − − − 255,872,291 − − − − − − 53,331,599 13,564,618 − − 293,602 − 53,331,599 − 293,602 974,123 13,564,618 974,123 − 7,117,231 − 2,401,016 − − P 429,639,806 7,117,231 2,401,016 18,993,875 429,639,806 18,993,875 −299,926 −299,926 −66,373 −299,926 −66,373 P - Fair values of time deposits are estimated using the discounted cash fl using the discounted are estimated of time deposits values - Fair (a) (a) (a) ows are discounted using the Group’s current incremental borrowing rates for similar borrowings similar borrowings for rates incremental current borrowing Group’s discounted using the are ows (b) - Fair value is estimated using the discounted cash fl value - Fair - Quoted market prices are not readily available for these liabilities. These are reported at cost and are not signifi are reported at cost These these liabilities. for prices are not readily available - Quoted market - Fair values are estimated using the discounted cash fl are estimated using the discounted cash values - Fair inputs that are not based on observable data or unobservable market inputs. either directly (as pric 1 that are observable the asset or liability, for inputs other than quoted prices included in Level : identical assets or liabilities; for markets quoted prices in active Treasury bills bonds Private nancial assets nancial nancial assets nancial and 2014 dates in 2015 at various valued relation to the Group’s total portfolio. relation to the Group’s Value Fair Hierarchy of fi value determining and disclosing the fair for hierarchy Group uses the following The Recurring fair value measurements Private bonds Private receivables Loans and loans Corporate commercial and Fair values of liabilities carried at amortized cost Consumer loans Consumer loans Trade-related Others Sales contracts receivable Investment properties Buildings and improvements payableBills Deposit liabilities Deposit Land assets and liabilities are prese Company’s and Parent of the Group’s hierarchy value the fair and 2014, of December 31, 2015 As from prices); and indirectly (derived Financial liabilitiesliabilities at FVPL Derivative (a) as of December 31, 2015 valued (b) AFS fi AFS bonds Government approximate fair values considering that these are currently due and demandable. currently considering that these are values fair approximate notes Treasury assets Financial assets designated Derivative at FVPL Quoted private bonds equityshares Quoted methodology, where future cash fl cash where future methodology, deposits, carrying demand and savings For the liability being valued. remaining for consistent with those and with maturities Fair values of assets carried at amortized cost/cost Government bonds Government HTM fi HTM Financial assets at FVPL Held-for-trading bonds Government Level 1 Level 2: Level 3: Other liabilities Bills payable Manager’s checks and accrued interest and otherSubordinated expenses debt Deposit liabilities (time, demand and savings deposits) current incremental borrowing rates for similar borrowings and with maturities consistent with those remaining for the liabilit remaining for consistent with those and with maturities similar borrowings rates for incrementalcurrent borrowing the accounts. borrowings. 116 Annual Report 2015 Recurring fair value measurements value fair Recurring utdeut hrs1014 150,124 2,277,687 − − 997,632 72 35,484,049 − 3,918,504 − − − − − 150,124 − 101,610 18,843,398 2,277,687 72 16,640,651 − − 997,632 101,610 289,557 − − 3,918,504 − 289,557 atFVPL liabilities Financial Quoted shares equity Quoted private bonds − Derivative Government bonds AFS fi atFVPL designated assets Financial 1 , Private 8 3liabilities bonds Treasury 9 6 1 bills 71, T−2, 6 0Derivativepapers 8 r , , e 0 a 1 8 s 8 6 u 9 r yassets n o t e s64 oenetbnsP Government bonds Held-for-trading atFVPL assets Financial ulig n mrvmns − −238752,368,785 1,217,094 2,368,785 1,217,094 − − 7,472,846 236,479,682 190,151 7,472,846 − 236,479,682 − − 190,151 − − − − − 394,752 42,006,980 14,282,127 P 14,282,127 42,006,980 improvements and Buildings − − 394,752 − − − − properties Investment receivable contracts Sales Land and Corporate commercial loans andLoans receivables Others Trade-related Government Consumer bonds HTM fi cost/cost amortized at carried assets of values Fair Private loans loans bonds il aal − ,1,1 6,219,515 1,160,253 6,219,515 388,897,198 1,160,253 − Government 388,897,198 − bonds Held-for-trading − − atFVPL assets Financial − − Subordinated Bills Deposit cost amortized at carried liabilities of values Fair debt payable liabilities (Forward) Derivative liabilities atFVPL liabilities Financial AFS fi Derivative atFVPL designated assets Financial assets Private Treasury bonds notes (b) valued asofDecember31,2014 (a) Recurring fair value measurements value fair Recurring valued atvarious datesin2014 and2013 Quoted shares equity bonds private Quoted bonds Government nancial assets nancial assets nancial assets Treasury bills Treasury (b) Notes toFinancialStatements (a) (a) (a) (a) P P P −66,373 −299,926 −720,983 −66,373 −299,926 −720,983 P 35242P 13,562,482 527332,2,1 −46,352,559 − 21,125,216 25,227,343 778201,3,0 −38,663,049 − 10,934,809 27,728,240 930741,9,3 −52,006,305 − 12,695,531 39,310,774 31770P 13,167,730 ,9,7 − 2,299,970 − − 2,299,970 ,6,6 − 7,766,369 − − 7,766,369 P 0,4 P 600,848 5,7 − 556,570 − − 556,570 4,6 P 847,767 1,7 − 111,470 − − 111,470 Level 1Level 2Level Total 3 Level 1Level 2Level Total 3 8 9,6 −595,351 − 594,963 388 −P − P −P 2,0 P 324,000 4,5 P 144,850 Parent Company 0,1 P 101,610 694P 46,904 P 46,904 633P 66,373 Consolidated 2015 −P 2014 − 9,7,6 P 396,276,966 0,1,6 P 304,017,665 −P −P −P −P −P 396,276,966 317,627,051 13,214,634 992,617 66,373 924,848 101,610 117 Annual Report 2015 101,610 813,896 12,429,750 12,532,769 287,202,335 381,542,427 335,375,356 265,956,262 −P −P −P −P 253,131,760 P 271,792,386 P 381,542,427 P 335,375,356 P −P − P −P −P −P −P 2014 2015 Parent Company Parent 101,610 P 213,755 P Parent Company Parent − P −P −P P P Level 1Level 2Level 3Total 2Level 1Level Level Level 1Level 2Level 3Total 2Level 1Level Level 600,141 P 2,877,180 − − 2,877,180 12,429,750 P 12,824,502 P 12,532,769P 15,409,949 P 23,855,903 20,683,188 − 44,539,091 P P P −− 232740223,257,420 − − −− 223,257,420 −− −− − 30,991,571 − 11,559,856− − 4,427,761 − − 30,991,571 363,211,514 1,217,191 74,319 264,268 11,559,856 4,427,761 1,217,191 − − − − 363,211,514 P 264,268 74,319 18,330,913 18,330,913 (a) (a) (a) (b) (b) nancial assets nancial nancial assets nancial nancial assets nancial Government bondsQuoted private bonds equity sharesQuoted 15,463,159 2,123,878 149,358 18,790,261 − − − 34,253,420 − − 2,123,878 149,358 valued at various dates in 2014 and 2013 dates in 2014 at various valued and 2014 dates in 2015 at various valued Fair values of liabilities carried at amortized cost liabilitiesDeposit payableBills − − − 330,299,420 − 330,299,420 5,075,936 5,075,936 (a) valued as of December 31, 2014 valued (a) (b) Government bonds Government P HTM fi HTM Land Buildings and improvements − − − 1,270,864 − 1,270,864 4,454,158 4,454,158 Financial assets at FVPL Held-for-trading bonds Government P Land Consumer loans Consumer loans Trade-related Others Sales contracts receivable Investment properties Buildings and improvements payableBills Fair values of assets carried at amortized cost/cost bonds Private receivables Loans and loans Corporate commercial and Fair values of liabilities carried at amortized cost liabilities Deposit (a) as of December 31, 2015 valued (b) HTM fi HTM bonds Government Fair values of assets carried at amortized cost/cost Financial liabilities at FVPL liabilities Derivative − 101,610 − 101,610 rvt od 997,632−−997,632 bonds −289,557−289,557 assets bills notes Treasury Treasury Private FVPL at designated assets Financial Derivative fi AFS − 3,918,504 72 603,231 − − 1,389,543 72 − − 3,918,504 1,992,774 Private bonds Private receivables Loans and loans loans Corporate commercial and loans Consumer Trade-related OthersSales contracts receivableInvestment properties − 394,752 − − − − − 206,200,831 206,200,831 − − − − − 12,555,690 28,188,018 12,555,690 28,188,018 394,752 380,300 − 380,300 81,899 81,899 Recurring fair value measurements 118 Annual Report 2015 Land Market Data Approach Price per square meter, size, location, shape, time time shape, meter, location, size, square per Price New Cost Reproduction Approach Data Market Approach Cost and Approach Data Market investment propertiesareasfollows: Description ofthevaluation techniques andsignifi Building and Land Land properties heldby theGroupandParent Company: The below table summarizes thevaluation techniques usedandthesignifi beingvalued.time thevaluations ofsimilarpropertiessoldwiththeproperty were madeandcomparability sales ofsimilarpropertiesinthesameareasasinvestment intoaccounttheeconomicconditions prev propertiesandtaking external beingappraised. andin-houseappraisersbasedonhighestbestuseofproperty Valuations were derived onthebas The fair values oftheGroup’s andParent Company’s investment propertieshave beendetermined by theappraisalmethodby indep applicable riskpremium. Inputs usedinestimatingfair values offi intoaccounttheremainingtermtomaturity ofthederivativethe reportingdate,taking assetsandliabilities. hp Particular form or confi cut average to the conforms comparable or size ofproperty lot the if Evaluate ofarea. terms in oflot Size Shape Size bui similar and design same the employing structure, existing ofthe replica avirtual to create cost The reached is It condition. present its in property the to duplicate required investment ofthe estimate an is It New Cost Reproduction Signifi recently properties comparable to similar appraised being property Approach subject the Cost ofcomparing Aprocess Approach Data Market Techniques Valuation liabilities and assets Derivative papers commercial entire fair value measurement. and bonds Private securities Government The inputsusedinthefair value measurementbasedon measurements in2015 and2014. There were notransfers between Discount Generally, asking prices in ads posted for sale are negotiable. Discount is the amount the seller or or seller the amount the is Discount negotiable. are sale for posted ads in prices asking Generally, Corner infl depreciated or appreciated have values property general if made is conditions market for “An adjustment also could width Road road. secondary or Road, aMain on whether Discount properties ofcomparative Location Element Time Location cant Unobservable Inputs uence Bounded by two (2) roads. (2) by two Bounded uence -interpolatedratesbasedonmarket ratesofbenchmark securitiesasofreportingdate. of the lots in the area and estimate the impact of lot size differences on land value. land on size differences oflot impact the estimate and area the in lots of the materials. over time”. In which case, the current data is superior to historic data. to historic superior is data current time”.over the case, which In developer is willing to deduct from the posted selling price if the transaction will be in cash or equivalent. or cash in be will transaction the if price selling posted the from to deduct willing is developer to infl due dates transaction the since road. asecondary along located properties to superior are Road aMain along located properties arule, As available. is data if aconsideration be property. ofthe use best and highest the with conforms which lot confi to the Cost Approach is the estimate of Reproduction Cost New of the improvements. ofthe New Cost ofReproduction estimate the is Approach Cost to the Fundamental cost. depreciated the deducting “as then and new” if building ofthe value the by estimating sale. for offered being or sold -fair values arecalculatedby reference totheprevailing interestdifferential andspotexchange rateasof Notes toFinancialStatements Level 1and -quotedmarket priceofcomparableinvestments withcreditriskpremiumthatisinsignifi guration maximizes the usable area of the lot which is associated in designing an improvement improvement an designing in associated is which lot ofthe area usable the maximizes guration nancial instruments carried atcostandcategorized under auto ehiusSignifi Techniques Valuation Level 2fair value measurementsandnotransfers intoandoutof cant unobservable inputsusedinthevaluation cant unobservable oftheGroupand Parent Company’s guration of the lot. A highly irregular shape limits the usable area whereas an ideal ideal an whereas area usable the limits shape irregular Ahighly lot. ofthe guration Level 2areasfollows: ation or defl or ation cant unobservable inputsvaluation cant unobservable for each ofinvestment type ation or a change in investors’ perceptions of the market market ofthe perceptions investors’ in achange or ation element and corner infl corner and element cant Unobservable Inputs Level 3includerisk-freeratesand uence Level 3fair value ailing atthe cant tothe is ofrecent endent lding 119 Annual Report 2015
e its oid its the ves ves The The and r the ucts, ment tion is tion of tability ble and BOD of owever, owever, internal hly basis e RMC is and credit ice risk) and on ensuring ally with the ols, including ent Company ent Company onitoring, and its and reports nancial instruments involved, involved, nancial instruments cation, measurement, monitoring and cation, measurement, monitoring c risk management issues that would need resolution c risk management issues that would nancial instruments. Risks are inherent in these activities but are inherent in these Risks nancial instruments. le changes. Loan loss provisioning and credit limit utilization are, h loss provisioning Loan le changes. nancial risks faced by the Parent Company. The key risk indicators contain key The Company. the Parent by nancial risks faced table use of fi nancial risks separately. The subsidiaries, particularly CBSI and PDB, have their own risk their own have subsidiaries, particularly CBSI and PDB, The nancial risks separately. cer (CRO). ected in its corporate actions and organizational improvements, the Group has placed due importance on actions and organizational improvements, ected in its corporate nancial instruments, whether “on-books” or “off-books.” The RMG is likewise responsible for monitoring the monitoring responsible for RMG is likewise The “off-books.” or “on-books” whether nancial instruments, nancial position in the market. nancial position in the c risk control procedures and enforcing compliance thereto. The RMG is also directly involved in the day-to-day in the day-to-day involved RMG is also directly The compliance thereto. c risk control procedures and enforcing nancial structure. Among others, the report on key risk indicators includes information on the Parent Company’s Company’s on the Parent information risk indicators includes Among others, the report on key nancial structure. nancial risks. The RMG also ensures that risk measurements are accurately and completely captured on a timely basis in the RMG also ensures that risk measurements are accurately and completely captured The nancial risks. nancial risks that the Group faces are: credit risk, market risk (i.e. interest rate risk, foreign currency risk and equity risk currency pr risk (i.e. interest rate risk, foreign are: credit risk, market that the Group faces nancial risks nancial stability. Central to the Group’s risk management process is its adoption of a risk management program intended to av process is its adoption of a risk management risk management to the Group’s Central nancial stability. those under the risk management framework handled by the RMG. The audit of these processes and controls is undertaken at least audit of these processes and controls is undertaken The the RMG. handled by those under the risk management framework exclusively to the Audit Committee which, in turn, is comprised of independent directors. The Internal Audit Division focuses Division focuses Audit Internal The is comprised of independent directors. in turn, which, Committee Audit to the exclusively all processes and contr covers regular audit The that adequate controls are in place and on monitoring compliance to controls. are discussed initi their resolution or improvement, including recommendations for audit results and exceptions, The annually. Committee. Audit these are presented to the business units concerned before manageable fi RMG regularly reports the results of the risk measurements to the RMC. The Company. of the Parent management reporting system risk management objectives. with the unit’s transactions and dealings of the unit are in compliance the business un role in risk management primarily because it is independent of crucial a Division also plays Audit Internal The risk measurement and monitoring to make sure that the Parent Company, in its transactions and dealings, engages only in accepta in its transactions Company, sure that the Parent risk measurement and monitoring to make risk management strategies approved by the RMC. The implementation cuts across all departments of the Parent Company and invol Company implementationThe cuts across all departments of the Parent the RMC. by risk management strategies approved fi Company’s all of the Parent implementation of specifi the Chief Risk Offi RMG is headed by and that all the external ensure process controls which business unit has created and put in place various Apart from RMG, each risk measurement tools, monitoring of key risk indicators, and the imposition and monitoring of risk limits and thresholds. Th risk indicators, and the imposition and monitoring of risk limits and thresholds. risk measurement tools, monitoring of key members of the BOD. composed of four the implementation risk management and of th Risk Management Group (RMG) is the direct support of the RMC in the day-to-day The programs and objectives are the same across the Group. The gravity of the risks, the magnitude of the fi of the risks, the magnitude gravity The are the same across the Group. programs and objectives and regulatory requirements are primary processes put in place fo of the risk management and extent considerations to the scope subsidiaries. monitoring risks. includes, (RMC) the implementation management process which of the risk BOD has delegated to the Risk Management Committee The control guidelines policies and procedures, implementa risk strategies and principles, of various among others, the development transactions and fi aggregate credit exposure, credit metric forecasts, hold limit exceptions, Value-at-Risk (VaR) analysis, utilization of market utilization of market analysis, (VaR) Value-at-Risk hold limit exceptions, forecasts, credit metric aggregate credit exposure, information from all business units that provide measurements on the level of the risks taken by the Parent Company in its prod Company the Parent of the risks taken by measurements on the level provide from all business units that information Risk Management (ManCom) on a monthly and other members of the RMG report to the RMC and are a resource to the Management Committee CRO The Reporting indicators and specifi risk reports on key CRO The basis, respectively. and a weekly and its subsidiaries manage their respective fi their respective and its subsidiaries manage risk manage a certain the respective extent, To Company. similar to that of the Parent but are structured management processes The BODs. of the subsidiaries are the separate responsibilities of their respective other hand, the risk management processes authority with explicit and responsibility managing for independent committee created a separate board-level Company the Parent been discussed with the business un risk indicators have issues and key the risk is undertaken after This from top management. concerned. on the basis of the fi formulated risk indicators were key The and risk profi loan loss provisioning limits, liquidity ratios, overall The BOD of the Parent Company is ultimately responsible for the oversight of the Parent Company’s risk management process. On risk management Company’s of the Parent the oversight for is ultimately responsible Company BOD of the Parent The Risk Management Structure are managed by the Group through a rigorous, comprehensive and continuous process of identifi the Group through a rigorous, comprehensive are managed by use of risk and authority m limits and thresholds, process controls and partly through the effective mitigation of these risks, and fi from taking acceptable returns risks necessaryunnecessary risks and maximize to sustain unavoidable risks, manage and mitigate business viabilityfi and good Par The these risks. on controlling and mitigating focused is primarily risk management objective Group’s The liquidity risk. On a monthly basis, detailed reporting of single-name and sectoral concentra discussed in more detail in the Credit Committee. on a mont Committee Audit reports to the Auditor included in the discussion with the RMC. On the other hand, the Chief Internal the resolution of pending but important or business unit audits and for issues. internal audit on the results of branch FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES AND OBJECTIVES RISK MANAGEMENT FINANCIAL related to the profi activities are principally Group’s The The key fi independent controls. As refl As independent controls. continuing profi and considers it as a vital its risk management process and strengthening component to the Group’s expanding 6. 6. 120 Annual Report 2015 Pillar 1Plusapproach: (1)undernormalbusinessconditions and(2)understressevent (usingIST framework). For the2016 submission,theParent buffer Company ofcapital shallpresentintheICAAPdocumenttwoseparate computations und the GroupandParent Company have appropriateandsuffi and operationallossesinacollective mannerdriven by events ratherthaninsilo. The assessmentinthedocumentdisc capital the IntegratedStress Test (IST). The adoptionoftheIST allows theParent Company toquantifyitsoverall tom vulnerability as thebaseline. The forofrisksabove processofallocatingcapital alltypes levels thePillar1capital was primarilybase For theICAAPdocumentsubmitted 30,2015, onJanuary theParent CompanythePillar 1Plusapproach retained usingthePillar1 that theParent Company hasanappropriatelevel relative ofinternalcapital to theGroup’s riskprofi The Parent Company submitted 30,2015. itsICAAPdocument,incompliancewithBSPrequirementsonJanuary The documentdisclos review Ratios threshold. ofPriorityRisksandCapital selected membersoftheBODandSeniorManagementremain same.Inaddition,theBODalsoapproved thetriggerevents for t On February 4, 2015, theBODaffi of theICAAP, asprovided for underPillar2ofBasel IIandBSPCircularNo.639. andem this regard,theBoardtoassistinbank-wideimplementation approvedofaconsultant theengagementofservices (ICAAP) by alluniversalrelative andcommercialsbankstodeterminetheirminimumrequiredcapital totheirbusinessriskexpo 15,BSP issuedCircularNo.639datedJanuary which 2009 mandatedtheuseofInternalCapital Adequacy Assessment Process module thatwas acquiredtoenhanceriskmeasurementandautomatereportingofmetricswillbeimplementedin2016. foreign exchange swaps whileParametric andforwards, VaR isusedfor fi For themeasurementofmarket riskexposures, theBank usesHistoricalSimulation VaR approach for derivative instruments, incl 2013. The system alsohasaFunds Transfer Pricing moduleusedby the Treasury GroupandCorporatePlanningGroup. andinterest rateriskexposuresLiquidity aremeasuredandmonitoredthroughreportsfromthe ALM system which was implemented decisions withregardtofundspricingandresourceallocation. Parent Company’s riskandinterestraterisk. assetsandliabilities,particularlyintheareasofliquidity An ALM would supp The Group’s Managementidentifi monitors andmeasurestheoverall inrelationtotheaggregateriskexposureandac risk-bearingcapacity acrossallrisktypes as, thelevels ofrisksthattheGroupiswillingtotolerate,withadditionalemphasisonselectedindustries. Inaddition,t the Group’s transactionsanddealings. These limitsandthresholdsrefl Monitoring andcontrollingrisksareprimarilyperformed basedonvariousby limitsandthresholdsestablished thetopmanageme assessment ofweaknesses intheprocessesandcomeupwithviableimprovements toavoid recurrence. andupdate theParentmaintain Company’s Centralized Losswhereinallreportedincidentsoflossesshallbeencodedto Database in place,andinstitutionalization ofadditionalmeasurestoensureacontrolled operatingenvironment. RMGwas alsomandated risk identifi Based ontheapproved OperationalRisk Assessment Program, RMGspearheadedthebankwide(allHeadOffi taken upandresolved intheRMCandManCom. management information. Any inconsistenciesintheoperating policiesandmanualswiththeriskframework createdby theRMGa directly involved inoperationsandfrontlineactivities(i.e.,players mustnotbescorers). This istoimprove thecredibil business unitsarereiteratedinthesepolicies. To theextent possible,reportingandaccounting responsibilitiesaresegrega detection controls.Cleardelineationofresponsibilitiesandseparationincompatibledutiesamongoffi operating policiesandmanualsfor each preventive businessunit.Intheprocessdesignandimplementation, controlsareprefe to improve itsexisting policies. These astheframework policiesfurtherserve andsetofguidelinesinthecreationorrevis To furthermitigaterisksthroughoutitsdifferent businessunits,theParent Company formulates riskmanagement policiesandc by theBSPfor theParent Company anditssubsidiaries. clients, invests funds toissuers(i.e.,investment securities issuedby eithersovereign orcorporateentities) orentersinto potential creditrisks everytimeitextends fundstoborrowers, commitsfundstocounterparties, guaranteesthepaying perform Credit riskistheoffi Risk Credit currencies exposures. H The Parent Company usesderivatives tomanageexposures initsfi Mitigation Risk automate reportingofmarket riskmetrics,willbeimplementedin2016. Funding Ratio (NSFR).Similarly, theMarket RiskManagementSystem, which was acquiredin2014 toenhanceriskmeasurementand rate riskwillbeupgradedin2016 andwillincludenew modulesfor calculatingBasel III’s Coverage Liquidity Ratio (LCR)and The Management(ALM)system,Asset andLiability which was implementedin2013, for riskand measuringandreportingliquidity Credit Risk and Concentration of Assets and Liabilities and Off-Balance Sheet Items Sheet Off-Balance and Liabilities and Assets of Concentration and Risk Credit cation andself-assessmentprocess. This wouldriskareas,assessmentofmitigatingcontrols enabledeterminationofpriority owever, toafi nancial loss on accountofacounterparty ed theneedfor an ALM applicationtostrategicallymanagerisksarisingfrommismatches betweenthe the nature andextent ofusethesefi rmed that the priority risks set in the 2009 RiskSelf-assessment Surveyandvoting riskssetinthe2009 conductedamong rmed thatthepriority Notes toFinancialStatements cientlevel ofinternalcapital. nancial instruments resultingfromchanges ininterestratesandforeign ect theGroup’s businessstrategiesandmarket environment, aswell nancialinstruments tomitigaterisksarelimitedthoseallowed nancial product failing tohonoritsobligation. The Groupfaces xed incomesecuritiesproducts. A Market RiskManagement le. cersandstaff, aswell as,among ce unitsandbranches) he Parent Company ity andaccuracyof ity d ontheresultsof eithermarket- ted fromunits ort high-level arket shocks tivities. nt covering Net Stable Net Stable ance ofits uding IRS, loses that sures. In rred over ontinues bedding interest enable ions of capital capital er the ed he in to re
121 Annual Report 2015
l ve with e to uring raphic facility gned for gned for es). The The es). 136,527 152,604 145,546 143,584 mounting duled live duled live enhanced he results ties and/or egion as of for business for ed by changes changes ed by s is being done counterparties. Credit Commitments Credit Commitments n). c guidelines focusing on c guidelines focusing 411,916 P 408,561 P 346,240 P 349,595 P 2014 2014 ed accounts, with the remaining 349 1 19 349 1 20 1,032 2,041 936 1,032 2,041 936 4,806 329 3,922 4,806 329 3,922 27,501 984 2,180 27,501 984 2,180 Assets Liabilities Assets Liabilities 417,659 P 451,347 P 391,291 P 357,603 P P P P P Consolidated 161,591 145,950 152,598 154,944 Parent Company Parent ned under BSP Circular No. 439. It has two components, namely: No. 439. It has two components, namely: ned under BSP Circular Credit Commitments Credit Commitments 450,788 P 396,527 P 382,367 P 464,948 P 2015 2015 598 16 498 598 16 498 ed concentrations of credit risks are controlled and managed accordingly. ed concentrations of credit risks are controlled 2,106 19 20 2,1061919 5,896 14,038 2,956 5,896 14,038 2,956 21,221 87 3,174 21,390 87 3,174 476,778 P 407,221 P 437,042 P 506,768 P P P P P Assets Liabilities Assets Assets Liabilities Assets ed accounts in accordance with regulatory guidelines. provisioning ed portfolio. Identifi ed portfolio. Philippines Philippines United States United Others Europe Asia Others United States United Europe Asia nancial decision making. The CRRS covers corporate borrowers with total total a assets, total or credit exposures facilities, corporate borrowers covers CRRS The nancial decision making. 15.00 million and above. 15.00 Geographic Region Geographic Geographic Region Geographic Excessive Risk are engaged in similar business activities, or activities in the same geog Concentrations arise when a number of counterparties Concentration groups of counterparties, as well as industry as well groups of counterparties, of its assessment of the creditworthiness divisions. It also conducts periodical agreements and collateral arrangements obtainsIn addition, the Group master netting collateral where appropriate, enters into the duration of exposures. counterparties, and limits the purpose of meas for (CRRS) requirements, the Group establishedIn compliance with BSP System Credit Risk Rating an internal information uses the risk accurately as possible, and thereafter as in a consistent manner, borrowers corporate credit risk for and fi obligations to be similarly affect cause their ability that would to meet contractual similar economic features region, or have traded or over-the-counter derivatives, through implied or actual contractual agreements (i.e., on or off-balance sheet exposur (i.e., on or off-balance agreements contractual or actual through implied derivatives, traded or over-the-counter Group manages its credit risk at various levels (i.e., strategic level, portfolio level down to individual credit or transactio to individual down level portfolio (i.e., strategic level, levels its credit risk at various Group manages individual counterpar of monitoring and managing credit risk from purposes Group established risk limits and thresholds for The to P in economic, political or other conditions. performanc Company’s sensitivity Concentrations indicate the relative of the Parent (in millions) follows: and 2014 December 31, 2015 developments affecting a particular industry location. or geographical affecting developments specifi policies and procedures include Company’s concentrations of risk, the Parent excessive In order to avoid maintaining a diversifi geographic r 29) by assets, liabilities, and credit commitment items (Note Company’s and Parent distribution of the Group’s The recalibration, closing the project in December 2015. recalibration, closing the project in December desi Credit Score (BCS), a credit scoring system the Borrower in 2011 launched Company the Parent from the internal CRRS, Aside sche The basis. implemented on a test run BCS is currently The retailsmall and medium entities and individual loan accounts. t further validate To recalibration. a need for of the model showed review the surface-level after implementation deferred was by security arrangements. The CRRS rating scale consists of ten grades, six of which fall under unclassifi fall grades, six of which rating scale consists of ten CRRS The security by arrangements. under classifi falling four the quantitatifor Analytics, the engagement of a third-party consultant, Moody’s approved Company the Parent 5, 2015, On March the mode by followed 2014 completed in December engagement was validation The of the internal CRRS. and qualitative validation Thi and is still ongoing. the data started qualitywere in 2015 assessment and statistical of the BCS validation of the review, of the corporate risk rating model. validation using the same methodology applied to the Further, the CRRS was designed within the technical requirements defi technical designed within the was CRRS the Further, a) Borrower Risk Rating which provides an assessment of the creditworthiness of the borrower, without considering the proposed of the creditworthiness of the borrower, an assessment provides which Risk Rating a) Borrower and security arrangements, and b) Loan Exposure Rating which provides an assessment of the proposed facilities as mitigated or an assessment of the proposed facilities provides which Rating Exposure and security and b) Loan arrangements, 122 Annual Report 2015
Credit risk,inrespectofderivative fi billion andP P maximum exposure tocreditrisk,before andafter intoaccountcollateralheldorothercreditenhancements: taking risk excluding values asrefl thosewherethecarrying credit to The below table provides theanalysis ofthemaximumexposure tocreditriskoftheGroupandParent Company’s fi exposure Maximum ofloansandreceivables ispresentedinNote 9tothefi Information oncreditconcentrationastoindustry For theParent Company, thefair values ofcollateralheldfor loansandreceivables andsalescontractsreceivable amountedto For theGroup,fair values ofcollateralheldfor loansandreceivables andsalescontractsreceivable amountedtoP guarantees andothersasdisclosed inNote29tothefi is limitedtotheamountsonbalance sheetpluscommitmentstocustomerssuch asunusedcommercialletters ofcredit,outst at FVPL(Note8). intoaccount thefairAs aresult,themaximumcreditrisk,withouttaking value ofany collateralandnetti 2.70 billion,respectively, asofDecember 31,2015 andP on n eevbe P and Loans receivables items sheet to on-balance relating exposure risk Credit ae otat eevbe12339 –1,233,339 – 1,233,339 receivable contracts Sales receivable contracts Sales ae otat eevbe3231 –352,361 – 352,361 receivable contracts Sales receivable contracts Sales on n eevbe P and Loans receivables items sheet to on-balance relating exposure risk Credit and Loans receivables items sheet to on-balance relating exposure risk Credit Loans and Loans receivables items sheet to on-balance relating exposure risk Credit are as follows are as are as follows are as follows are as are as follows are as 1.24 billion,respectively, asofDecember31, 2015 andP Notes toFinancialStatements nancial products,islimited tothosewithpositive fair values, which areincludedunderfi ected inthebalancesheetsandrelatednotesalreadyrepresent the fi nancialstatements. 130.64 billionandP epsr exposure Gross Net maximum exposure epsr exposure Gross Net maximum exposure exposure Gross Net maximum exposure epsr exposure Gross Net maximum exposure 94.22 billionandP P P P P P P 4,0,8 P 245,609,582 5,0,8 P 259,902,481 5,4,0 P 259,645,008 9,5,6 P 291,652,069 9,1,3 P 290,418,730 4,5,2 P 245,257,221 0,6,7 P 309,761,777 1,2,0 P 310,729,106 6,2 –967,329 – 967,329 5,7 –257,473 – 257,473 2.05 billion,respectively, asofDecember 31,2014. 1.07 billion,respectively, asofDecember31, 2014. Parent Company Parent Company Consolidated Consolidated 2015 2015 2014 2014 4,3,8 P P 148,834,282 148,834,282 6,4,9 P P 161,244,693 161,244,693 3,8,9 P P 136,284,199 136,284,199 7,2,0 P P 177,020,802 177,020,802 nancialstatements. of collateral or ofcollateral credit enhancement Financial effect of collateral or ofcollateral credit enhancement Financial effect of collateral or credit enhancement Financial effect of collateral or credit enhancement Financial effect nancial instruments, nancial instrument’s 149.00 billionand ng agreements, nancial assets 109,325,383 108,973,022 141,584,448 133,708,304 132,740,975 142,817,787 98,400,315 98,657,788 P anding 123.76 123 Annual Report 2015
tion of alue of bonds, ed based products. lemented t terms is fi ood access es focused es focused mally has a information information at any time. at any the outstanding ating equivalent ating equivalent ower has a high ower accordance with nancial markets. markets. nancial 848.48 million and nancial position with a history of successful performance. The The position with a historynancial of successful performance. ow to total ow debt service is deemed very strong; the critical balance sheet ratios (vis-à- nancial analytics, combined with processed market information to provide the main inputs to provide information market nancial analytics, combined with processed 7Especially Mentioned 1Excellent 2Strong 3Good 4Satisfactory 5Acceptable 6Watchlist 7Especially 8Substandard 9Doubtful 10 Loss CRRS GradeCRRS Description favorable economic and/or market conditions. Typical for this type of borrower is the combination of this type of borrower for Typical conditions. economic and/or market favorable nancial assets nancial decision making. Aside from the periodic credit process review by the Bank’s Internal Audit Group, the Audit Internal the Bank’s by from the periodic credit process review Aside nancial decision making. ned as follows: limited to nancial assets is managed by the Group using an internal credit rating system for the purpose of measuring credit risk for the Group using an internal credit rating system nancial assets is managed by owever ows, is strong. ows, and guarantees 1.04 billion, respectively. These collaterals comprised of real estate properties and stock securities. of real estate collaterals comprised These properties and stock billion, respectively. 1.04 collateral during its review of the adequacy of allowance for credit losses. for of the adequacy of allowance collateral during its review used to reduce or repay proceeds are The in an orderly fashion. policy to dispose of repossessed properties It is the Group’s business use. for repossessed properties does not occupy Company the Parent claim. In most cases, amounted to P 2014 and the Group as of December 31, 2015 and are still held by and 2014 in 2015 Collaterals foreclosed • • transactions - cash or securities repurchase securities lending and reverse For • vehicle over consumer lending - real estate and chattel For shares of stocks, properties, assignment of deposits, over estate, lending and commercial lending- real corporate chattel For Management requests additional collateral in accordance with the underlying agreement and takes into consideration the market v the market underlying agreement and takes into consideration additional collateral in accordance with the Management requests to public markets to raise funds. The borrower has a strong market and fi has a strong market borrower The to raise funds. to public markets debt serviceoverall capacity cash fl as measured by vis industry) are conservative. degree of stability, substance, and diversity. It has access to raise substantial amounts of funds through the public markets substance, and diversity. degree of stability, all economic conditions. is of highest quality under virtually borrower The very good. in this category has g the borrower conditions, Under normal market substance, and diversity. comfortable degree of stability, The borrower has a very strong debt service capacity and a conservative use of balance sheet leverage. The track record in pro track The has a very strong debt service borrower capacityThe and a conservative use of balance sheet leverage. The rating system is supported by a variety of fi is supported by rating system The in All internal risk ratings are tailored categories and are derived the measurement of counterparty to the various for risk. standard The credit r risk ratings are assessed and monitored regularly. attributable The rating policy. Company’s the Parent risk rating class. in each certain only for exposures grades are relevant grade: table the description of the internal CRRS shows following The the credit risk rating model. facilitat This policy to maintain accurate and consistent risk ratings across the credit portfolio. Company’s It is the Parent The credit quality The of fi model on risk ratings is assessed regularly because the Group uses this The in a consistent manner as accurately as possible. Bank likewise engaged the services of third-party consultants in 2014 and 2015 for purposes of conducting an independent valida for and 2015 engaged the services likewise of third-party consultantsBank in 2014 as a tool for business and fi as a tool for all lines of business, geographic regions and across comparison of credit exposures management of the applicable risks and the P This access is h This as measur debt serviceThe capacity, (vis-à-vis industry).comfortable asset protection and acceptable balance sheet structure on cash fl The credit grades are defi The borr The with a very probability in the coming year. category low of going into default This applies to a borrower - Excellent Credit quality per class of fi Collateral and Guidelines are imp other and type amount The risk of the counterparty. of the credit depends on an assessment of collateral required credit enhancements with regard to the acceptabilitywith regard of types parameters. and valuation of collateral main types obtainedThe of collateral are as follows: Good - This category covers the smaller corporations with limited access to public capital markets or access to alternative fi or access to alternative category the smaller corporations with limited access to public capitalThis markets covers Good - Strong - This category applies to a borrower with a low probability of going into default in the coming year. The borrower nor borrower The probability in the coming year. with a low of going into default categoryThis applies to a borrower Strong - 124 Annual Report 2015 Watchlist - representstheborrowerThis category for which un - Satisfactory representstheborrowerThis category whereclearriskelementsexist ofdefault andtheprobability issomewhat Acceptable - The riskelementsfor theParent Company aresuffi The Group’s receivables fromcustomerswere classifi their continuanceasbankableassetsisnotwarranted althoughtheloansmay have somerecoveryorsalvage value. of theborrower’s business. These loansorportionsthereof which areconsidereduncollectibleorworthless andofsuch little applies wheretheParent Company willtakeorhastakentitletotheassetsofborrower andispreparingaforeclosure and/ Loss - representstheborrower isremote This category whoseprospectforofcreditworthinessanddebtservice re-establishment full highlyimprobableandinwhich loss isprobable. substantial those classifi isdoubtful.Doubtfulloansareorportionsthereofwhichfuture prospectsoforderlydebtservice have theweaknesses i is inarrears for(90)days. morethanninety The borrower debt over isunableorunwilling toservice anextended periodoft Doubtful - includestheborrowerThis category with “non-performing loan” status orwithany portionofinterestand/orprincip Parent Company unlessgiven closersupervision. Company becauseofun loans areloansorportionsthereofwhichSubstandard appeartoinvolve andunreasonabledegreeofrisktothePa asubstantial managerial, economic,orpoliticalnature, orbyweaknesses important incover; ofdefault (b)theprobability isassessedatu interest becomesquestionableregardlessofscheduled payment date,by reasonofadverse developments onaccountofafi - Substandard representstheborrowerThis category whereoneormoreofthefollowing factors apply:(a)thecollectionofpri the Parent Company. These potentialweaknesses, ifleft uncorrected orunmitigated,would affect therepayment oftheloanand,thus,increasecred Concerted efforts shouldbemadetoimprove lender’s demandingadditionalcollateralorreductionofaccountex position(e.g., borrower isexpected tohave fi a pointwherethereisrealriskthattheborrower’s topay ability theinterestandrepay theprincipaltimelycouldbejeop generated by potentialoremergingweaknesses asfar asassetprotectionand/orcashfl some orallthefollowing: (a)evidence ofweakness intheborrower’s fi Especially Mentioned- appliestotheborrowerThis category thatischaracterized byofdefault, areasonableprobability mani has weakened, andunlesspresenttrendsarereversed, couldleadtolosses. possibility. Itincludestheborrower wherethecreditexposure isnotariskoflossatthemoment,butperformance ofth fi Operating performance andfi acceptable levels.acceptable normal businesscycles. Any prolongedun and cashfl period would createdeteriorationbeyond levels. acceptable Typical for thiskindofborrower isthecombinationofreasonably to publicfi This isrefl probability the pastfi nancing. nancing. The borrower willfi Impaired Generally loans with risk rating of 9 to 10 and include both past due due past both of9to 10 include and rating risk with loans Generally Impaired High Loans with risk rating of 1 and 2 of1and rating risk with Loans of3to 5 rating risk with Loans of6to 8 rating risk with loans Generally, classifi were that Those Impaired not but Due Past Sub-Standard Impaired or Due Past Standard High Impaired Nor Due Past Neither scalyear andisexpected toreportaprofi nancial markets. The borrower normalbusinesscycles, shouldbeabletowithstand butany prolongedun ow protection. asmeasuredby capacity cashfl The debtservice ed as “Substandard” rdtQaiyRtn Criteria Credit Quality Rating ected involatilityofearningsandoverall performance. The borrower normallyhaslimitedaccess inthiscategory favorable characteristics. recordorunsatisfactory There exists insuch offuture loansthepossibility losstothe nancial strengthmaywhethertheborrower bemarginalanditisuncertain canattract alternative sourcesof nd it very hardtocopewithany nd itvery signifi nancialdiffi , withtheaddedcharacteristics thatexisting facts, conditions,andvalues make collectionorliquidationin Notes toFinancialStatements cultiesandexposure may beatrisk.Closeraccountmanagementattention iswarranted. favorable economicand/ormarket periodwould create animmediatedeteriorationbeyond tinthecurrent year. ed according to credit quality asfollows: edaccordingtocreditquality and current loans which have objective evidence ofimpairment evidence objective have which loans current and have no objective evidence ofimpairment evidence objective no have ciently pronounced,althoughtheborrower shouldstillbeabletowithstand favorable orcompany-specifi industry cant economicdownturn andadefault insuch acaseismorethan riskis nancial conditionorcreditworthiness;(b)unacceptable ow isdeemed adequate. The borrower hasreportedprofi ed as Past Due per BSP guidelines and and guidelines BSP per Due Past as ed ow isconcerned;(c)theborrower hasreached c riskfactors representaconcern. favorable economic ardized; (d)the ime andnear soundasset or liquidation al payment e borrower value that p to50%. nherent in fested by ncipal or greater. it riskto posure). nancial, . Italso ts for rent
125 Annual Report 2015
e, ce for ce for 251,725 317,035 297,651 210,939 255,951 255,951 225,505 225,505 265,965 239,200 5,410 P 7,200 P 7,200 4,607 P 3,268 P 5,904 P 3,944 P 3,882 P 6,484 P Past Due Past Past Due Past Past Due Past Due or Impairedor Total or Impairedor Total or Impairedor Total or Impaired or Total to credit quality:ed according 682 P 849 P 1,752 P 1,752 1,973 P 2,641 P 3,281 P 2,022 P 4,529P Not Impaired Not Not Impaired Not Past Due But Past Due But Past Due But Past Due But Not Impaired Not Not Impaired Not 17,107 P 37,129 P 37,129 37,988 P 37,988 14,825 P 16,927 P 14,866 P 34,623 P 34,549 P , when the counterparty has no available risk grade. , when the counterparty has no available 2014 2014 2015 2015 Consolidated Consolidated Parent Company Parent Parent Company Parent Grade Unrated Grade Unrated Grade Unrated Grade Unrated 46,151 P 46,151 47,472 P 45,132 P 48,164 P 48,164 48,774 P 44,915 P 48,421 P 45,862 P 45,862 Substandard Substandard Substandard Substandard Grade Grade Grade Grade 150,715 P 150,715 151,886 P 136,561 P 139,229 P 153,902P 136,558 P 134,385 P 155,804 P Standard Standard Standard Standard Neither Past Due nor Impaired Neither Past Due nor Impaired Neither Past Due nor Impaired Neither Past Due nor Impaired – – – 69– – – 2 – 71 91 418 10,047 21 258 313 11,148 22 6,283 1,192 20,112 1,269 20,112 22 6,283 1,192 363 29,241 46 – –261 321 6 46 8 – 1,694 10,047 12,750 313 258 20 418 23,311 P 23,311 33,755 P 10,036 P 10,289 P 15,306 7,294 1,595 20,600 2,243 975 48,013 23,424 P 23,424 49,325 P 65,252 P 48,206 P P P P P High Grade High High Grade High High Grade High High Grade High nancial assets, outstanding exposure is rated primarily based on external risk rating i.e. Standard and Poor’s (S&P), otherwis risk rating i.e. Standard and Poor’s nancial assets, outstanding is rated primarily based on external exposure lending lending P lending lending P The table below shows the Group’s and the Parent Company’s loans and receivables, excluding other receivables (gross of allowan other receivables excluding and receivables, loans Company’s and the Parent the Group’s shows tableThe below impairment and credit losses and unearned discounts) as of December 31, 2015 and 2014 (in millions) classifi (in millions) and 2014 of December 31, 2015 unearned discounts) as and credit losses and impairment Corporate and commercial commercial Corporate and Corporate and commercial commercial Corporate and Consumer lending lending Consumer Others Total Trade-related lending Corporate and commercial commercial Corporate and tes1664–19238283 lending Consumer Trade-related lendingOthers Total 13,694 1,860 5,598 10,913 P 2,465 1,177 19,529 1,770 77 442 19 43,498 624 14,670 Corporate and commercial commercial Corporate and Consumer lending lending Consumer Trade-related lending Others Total Others –––77–4 81 –––77–4 lending Consumer Trade-related lendingOthers Total 33 220 10,907 4,421 P 1,177 2,329 19,529 77 1,272 19 97 624 27,681 13,024 Depository accounts with the BSP and counterparty banks, Trading and Investment Securities and Investment Trading Depository accounts with the BSP and counterparty banks, these fi For “Unrated” a local rating agency or included under rating is based on risk grades by 126 Annual Report 2015 risk ratings(grossofallowance for creditlosses). The below table showsofdeposits andinvestments thecredit quality asofDecember31,2015 and2014 (inmillions),basedone hybrid instruments classifi Due from BSP from Due AFS fi atFVPL assets Financial banks other from Due HTM fi SD andD- An obligorisindefault ononeormoreofitsfi regulators may have thepower to owing toitsfi supervision R - An obligorisunderregulatory regardless oftheanticipatedtimetodefault. CC - An obligoriscurrently vulnerable. The ratingisusedwhenadefault hasnotyet occurred, butexpects default tobeav meet itsfi CCC - An obligoriscurrently vulnerableandisdependentupon Adverse business,fi B - An obligorismorevulnerablethantheobligorsrated‘BB’, tomeetitsfi buttheobligorcurrently hasthecapacity commitments. exposure toadverse business,fi BB - An obligorislessvulnerableintheneartermthanotherlower-rated obligors.H are morelikely toleadaweakenedcircumstances oftheobligortomeetitsfi capacity BBB - tomeetitsfi An obligorhasadequatecapacity BBB andbelow: andeconomicconditionsthanobligorsinhigher-ratedin circumstances categories. A - tomeetitsfi An obligorhasstrongcapacity tomeetitsfi AA - strongcapacity An obligorhasvery AAA - tomeetitsfi An obligorhasextremely strongcapacity Following isthecreditratingscaleapplicablefor foreign banks,andgovernment securities(alignedwithS&Pratings): grouped asfollows: The external riskratingoftheGroup’s banks,tradingandinvestment accountswiththeBSPandcounterparty securit depository ihgaeAA A,A,A-S&P S&P S&P Credit Rating Agency &D SD R, CCC, B/B+, BB-, BB+, BB, BBB+, A+, A-, BBB, BBB- A, Credit External Risk Rating AAA, AA+, AA, AA- grade Substandard Standard grade High grade Credit Quality Rating nancial assets nancial assets nancialcommitments. nancial, oreconomicconditionswilllikely impairtheobligor’s orwillingnesstomeetitsfi capacity ed as regulatory capital orinnon-payment capital accordingtoterms. edasregulatory nancial, oreconomicconditionswhich couldleadtotheobligor’s tomeetitsfi inadequatecapacity favor oneclassofobligationsover othersorpay someobligationsandnotothers. Notes toFinancialStatements B,B,B- /+ C,R D&DFitch Moody’s Fitch Fitch Moody’s Moody’s &D SD R, CCC, B/B+, BB-, BB+, BB, &D B1, SD Ba1, R, Ba3, B2, Ba2, BBB+,A+, A-, BBB, BBB- A, Baa1, Baa3 A1, Baa2, A3, A2, AAA, AA+, AA, AA- Aaa, Aa1, Aa2, Aa3 nancial commitmentsbut issomewhat moresusceptibletotheadverse effects ofchanges nancialcommitments.Itdiffers fromthehighest-ratedobligorsataminimaldegree. ihGaeStandard Grade High Grade nancial obligationsincludingratedandunratedfi nancial commitments.H nancialcommitments. P ,8 50812218,887 1,262 15,038 2,587 ,5 59443841,504 4,318 35,934 1,252 ,4 P 3,941 the supervision, nancial condition.Duringthependencyofregulatory 0 ,6 0 3,577 306 3,169 102 P favorable business,fi −P −13,507 48313,990 5,6 P 153,967 639P 86,319 Consolidated owever, adv nancial, andeconomic conditionsfor theobligorto owever, it f owever, it nancialcommitments. 2015 erse economicconditionsorchanging Substandard aces major ongoing uncertainties and aces majorongoinguncertainties nancial obligationsbutexcluding rd Total Grade ,6 P 6,369 −P nancial commitments. nancial commitments. irtual certainty, 164,277 86,319 nancial xternal ies, is
127 Annual Report 2015 s the ped as nancial 77,004 67,452 60,544 127,424 136,971 152,228 aces major ongoing –P −P −P 6,660 P 3,487 P 3,695 P Grade Total Grade Total Grade Total owever, itowever, f Substandard Substandard Substandard erse economic conditions and changing erse economic conditions and changing 2014 2014 2015 Consolidated nancial commitment on the obligation. PRSBaa- Parent Company Parent 77,004 P 67,452 P 60,544 P Parent Company Parent 141,728 P 116,073 P 125,390 P owever, advowever, –P −11,42248311,905 −P −P P 102 2,466 306 2,874 7,886 P 7,864 P 1,249 35,798 4,318 41,365 3,840 P 2,489 15,038 1,553 19,080 P P P High GradeHigh Grade Standard High GradeHigh Grade Standard High GradeHigh Grade Standard PRSCaa-, PRSCa+, PRSCa, PRSCa-, PRSC+, PRSC, PRSC- PRSC, PRSCa-, PRSCa, PRSC+, PRSCaa-, PRSCa+, nancial commitment on the obligation is extremely strong. nancial commitment on the obligation is extremely nancial commitment on the obligation is very strong. nancial or economic conditions, which could lead to the obligor’s inadequate capacity to meet its could lead to the obligor’s nancial or economic conditions, which Credit Quality Rating Quality Credit Rating Risk External Credit nancial commitment on the obligation. Adverse economic conditions will likely impair the obligor’s capacity to meet impair the obligor’s economic conditions will likely Adverse nancial commitment on the obligation. favorable investment attributes and are considered as upper-medium grade obligations. Although obligations rated ‘PRSA’ Although obligations rated ‘PRSA’ grade obligations. and are considered as upper-medium attributes investment favorable nancial assets nancial nancial assets nancial −assets nancial 12,109 − 12,109 – 11,354 – 11,354 nancial assets nancial nancial assets nancial 887 34,437assets nancial 2,355 37,679 885 33,212 2,353 36,450 High grade gradeStandard gradeSubstandard PRSCaa, PRSB-, PRSB, PRSCaa+, PRSBa-, PRSB+, PRSBa, PRSBa+, PRSBaa- PRSBaa, PRSA, PRSA-, PRSBaa+, PRSA+, PRSAAA, PRSAa+, PRSAa, PRSAa- nancial commitment on the obligation. The issue is characterized by high credit risk. by issue is characterized The nancial commitment on the obligation. nancial commitment on the obligation. Due from other banks and government securities Due from other banks and government HTM fi HTM Financial assets at FVPL fi AFS Due from BSP P capacity to meet its fi its fi are somewhat more susceptible to the adverse effects of changes in economic conditions, the obligor’s capacity to meet its fi in economic conditions, the obligor’s of changes effects adverse more susceptible to the are somewhat PRSAaa - The obligor’s capacity to meet its fi obligor’s The - PRSAaa capacity to meet its fi obligor’s The - PRSAa With - PRSA commitments on the obligation is still strong. adequate protection parameters. H exhibits An obligation rated ‘PRSBaa’ - PRSBaa capacity of the obligor to meet its fi circumstances to lead to a weakened are more likely possess certain characteristics. rated issues may speculative issues. H than other speculative is less vulnerable to nonpayment An obligation rated ‘PRSBa’ - PRSBa uncertainties relating to business, fi fi ha but the obligor currently than obligations rated ‘PRSBa’, is more vulnerable to nonpayment An obligation rated ‘PRSB’ - PRSB Due from BSPDue from BSP P Due from other banks loans receivablesInterbank FVPL at assets Financial fi AFS fi HTM 6,944 − 55 7,779 224Due from other banks 3,389 loans receivablesInterbank Financial assets at FVPL fi AFS fi 1,234HTM 106 − 15,957 3,550 224 6,924 – 55 7,779 224 2,960 1,028 – 106 15,731 3,121 224 The external risk rating of the Group’s depository securities, is grou accounts with counterparty banks, trading and investment risk rating of the Group’s external The follows (aligned with the Philippine Ratings System): Ratings (aligned with the Philippine follows Due from other banks 128 Annual Report 2015 risk gradesofalocalratingagency(grossallowance for creditlosses). belowThe ofdepositsandinvestments, shows table thecreditquality by class,asofDecember31,2015 and2014 (inmillions), PRSC - An obligationisalreadyindefaultlittle withvery prospectfor any recoveryofprincipalorinterest. prospect for partialrecoveryofprincipalorinterest. PRSCa - An obligationrated “PRSCa” ispresentlyhighlyvulnerableto nonpayment. Likelyneardefault alreadyinorvery withs highcreditrisk and issubjecttovery obligor isnotlikely tohave tomeetitsfi thecapacity economic conditionsfor theobligortomeetitsfi Due from other banks other from Due banks other from Due oa P Total Other assets* HTM fi AFS fi atFVPL assets Financial Total AFS fi assets (Note 14). (Note assets miscellaneous and items cash other and checks returned receivable, contract sales receivables, accounts include assets Other * and 2014 (inmillions): The below table shows thebreakdown ofunrateddepositsandinvestments (grossofallowance for creditlosses)asofDecember3 Total AFS fi iaca sesa VL61––651 – P – 651 Total AFS fi atFVPL assets Financial u rmohrbnsP banks other from Due banks other from Due PRSCaa - An obligationrated‘PRSCaa’ ispresentlyvulnerabletononpayment andisdependentupon iaca sesa VLP atFVPL assets Financial Financial assets atFVPL assets Financial Financial assets atFVPL assets Financial Total HTM fi AFS fi nnilast 0 403 – – 403 nancial assets nancial assets nancial assets nnilast 5 558 – 1 557 nancial assets nancial assets nancial assets nancial assets Notes toFinancialStatements nancial commitments ontheobligation.Inevent ofadverse economicconditions,the nancial commitmentontheobligation. The issueisconsideredtobeofpoorstanding ihGaeStandard Grade High Grade ihGaeStandard Grade High Grade ihGaeStandard Grade High Grade ihGaeStandard Grade High Grade P P P 16,205 2,040 2,481 5,187 ,8 P 3,289 4,977 ,5 P 1,054 ,0 P 1,208 1,520 osldtdParent Company Consolidated ,6 7–2,177 – 17 2,160 P P P 2015 3 P 836 5 P 550 2 320 – – 320 0 106 – – 106 5 P 651 8 187 – – 187 1 P 119 1 111 – – 111 –P – P Parent Company P 10,494 Parent Company 4,408 4,240 1,567 Consolidated Consolidated 2014 279 0P 30 9P 29 7P 17 –P –P –P –P –P 2015 2015 2014 2014 Substandard Substandard Substandard Substandard Substandard Substandard Substandard Substandard favorable business,fi P 12,999 rd Total Grade rd Total Grade 3,320 3,320 2,041 rd Total Grade rd Total Grade 2,480 5,156 2015 P 2 –P –P – –P –P –P –P –P – nancial and nancial basedon P fi nancial 6,999 3,306 4,240 1,054 1,238 2,424 1, 2015 P P 2014 836 550 229 106 651 119 ome 29 129 Annual Report 2015 pany pany 682 849 essed 1,752 1,973 2,641 3,281 2,022 4,529 ore than 2014 39,061 396,018 435,079 P P 266 P 399 P 1,047 P 1,077 P 3,024 P 2,037 P 1,206 P 1,644 P 91 days Total 91 days Total 91 days Total 91 days Total More than More More than More More than More More than More 2015 7,478 436,322 443,800 P P 112 P 127 P 128 P 152 P 162 P 108 P 275 P 164 P nancial asset is past due when a counterpartynancial asset is past due has Consolidated Consolidated Parent Company Parent Parent Company Parent 2014 91 P 96 P 43,266 147 P 179 P 101 P 139 P 122 P 190 P 1,405,182 1,448,448 P P 11136 1−−12 2015 Consolidated Company Parent 217 P 157 − 5 96 258 157 − 5 96 258 621 P 227 P 303 38 35 893 1,269 350 67 107 1,719 2,243 532 P 492 P 953 P 654 P 12,020 P P P 1,040 P 949,418 937,398 P P 30 days 60 31 to days 90 61 to days 30 days 60 31 to days 90 61 to days 30 days to 60 31 days to 61 90 days 30 days to 60 31 days to 61 90 days Less than Less Less than Less Less than Less Less than Less nancial assets of the Group and Parent Company as of December 31, 2015 and 2014 and 2014 as of December 31, 2015 Company nancial assets of the Group and Parent ows of counterparties, credit rating downgrades, or infringement of the original terms of counterparties, credit rating downgrades, ows culties in the cash fl nancial assets nancial rd-eae edn 7−−1219 lending −−−−− Trade-related Others Others Trade-related lending rd-eae edn 7−−1219 lending −−−33 Trade-related Others Trade-related lending Others Corporate and commercial lending Corporate and commercial lending Corporate and commercial lending P Corporate and commercial lending P Loans and receivables Loans and Loans and receivables Loans and Loans and receivables Loans and Loans and receivables Loans and Consumer lending Consumer Total 397 56 20 799 1,272 Consumer lending Consumer Total P lending Consumer renegotiatedTotal fi Consumer lending Consumer Total 420 83 P 37 1,230 1,770 December 2014 31, Total P 90 days, or there are known diffi or there are known 90 days, ass and collectively allowances Group addresses impairment assessment in two areas: individually assessed The of the contract. allowances. Impairment assessment m by of principal or interest is overdue payment the loan impairment assessment include whether any main considerations for The held as of December 31, 2015 and December 31, 2014 (in millions). Under PFRS 7, a fi 7, (in millions). Under PFRS December 31, 2014 and 31, 2015 held as of December due. when contractually a payment to make failed The table below shows the aging analysis of gross past due but not impaired loans and receivables that the Group and Parent Com that the Group and Parent and receivables but not impaired loans of gross past due the aging analysis shows tableThe below December 2015 31, December 2014 31, December 2015 31, that would have been considered past due or impaired if not renegotiated: have that would The following table presents the carrying following amount of fi The Loans and advances customers to Corporate and commercial lending Consumer lending Consumer 130 Annual Report 2015 regular stress tests to ensure that the Group would withstand anextremeregular stressteststoensurethattheGroupwould market withstand event. regularly totestthevalidityofassumptionsandparameters usedinthe VaR calculation.Market riskpositionsareal indication ofprofi In practice,theactual tradingresultswilldiffer fromthe VaR calculationand,inparticular, thecalculationdoesnot provi 99% confi represents theriskofportfolios atthecloseof each businessday, anditdoesnotaccountfor any lossesthatmay occur and therelationshipbetweensuch factors for specifi in riskfactors fail toalignwiththe assumptions. VaR may alsobeunder- orover-estimated duetotheassumptionsplacedon predict thefuture changes andmodifi will follow thesamedistribution. Duetothefact that VaR reliesheavilytoprovide onhistoricaldata information andmay n VaR becauseitisbasedonhistoricalcorrelations andvolatilities haslimitations inmarket pricesand assumesthatfuture pr Methodology VaR The the VaR modelsaredesignedtomeasuremarket riskinanormalmarket environment usingequallyweighted historicaldata. of The Limitations The useofa99%confi 99% confi Simulation approach to VaR for foreign exchange instruments, equities,foreign exchange derivatives andinterestratederivativ Covariance andDuration-Based approach to VaR for domestic- andforeign- denominateddebtsecuritiesandDelta Approximation Hi The Parent Company calculatestheBankwide VaR tradingactivities. incertain The Parent Company usestheParametric Variance- VaR assumptions measure thatestimatesthemaximumpotentiallossfromaportfolio overa statistical aholdingperiod,withingiven confi controlling market risk.Market riskmanagementmeasurestheParent Company market riskexposures throughtheuseof VaR. VaR The RMGoftheParent Company managing isresponsibleformeasuring, assistingtheRMCwithitsresponsibility identifying, derivatives andinterestratederivatives. from itsholdingsofdomesticandforeign-denominated debtsecurities,foreign exchange instruments, equities,foreign exchange Market riskistheoflossthatmay resultfromchanges inthevalue ofafi Risk Market then reviewed by creditmanagementtoensurealignmentwiththeGroup’s overall policy. Management isresponsiblefor decidingthelengthofthisperiodwhich canextend for aslongoneyear. The impairmentallo recoveries onceimpaired. been incurred andthetimeitwillbeidentifi information: historicallossesontheportfolio, current economicconditions,theapproximate delay betweenthetimealossis evidence oftheimpairmentyet peranindividualassessment.Impairmentlossesareestimatedbyintoconsiderationthe taking The collective assessmenttakesaccountofimpairmentthatislikely tobepresentintheportfolio even thoughthereisnoobj impairment yet. Allowances are evaluated oneach reportingdatewitheach portfolio receivingaseparatereview. and unsecuredconsumerlending)for individuallysignifi allowances Allowances areassessedcollectively for lossesonloansandadvances thatarenotindividuallysignifi assessed Collectively each requiremorecarefulattention. reportingdate,unlessunforeseen circumstances fi once a when determiningallowanceofthecounterparty’s amountsincludethesustainability toimprove businessplan,itsability perfo allowances The Groupdeterminestheallowances appropriatefor each individuallysignifi assessed Individually and exposures arereviewed dailyagainstthelimitsby management. Further, stresstestingisperformed inmonitoringextreme Since VaR isanintegralpartoftheParent Company’s market riskmanagement, VaR limitshave for beenestablished alltrading and hypothetical dailylossesexceeds daily VaR. The Parent Company measuresandmonitorsthe VaR andprofi more thanonceeveryhundreddays. The validityofthe VaR modelisverifi nancial supportandtherealizablevalue ofcollateral,andthetimingexpected cashfl
fi nancial diffi dencelevel. dencelevel anda1-day holdingperiod. ts andlossesinstressedmarket conditions. To ofthe determinethereliability VaR models,actual outcomesaremonitored culty hasarisen,projectedreceiptsandtheexpected culty dividendpayout shouldbankruptcy ensue,theavailability ofother dence level meansthat,withinaoneday horizon, lossesexceeding the VaR fi Notes toFinancialStatements cations oftheriskfactors,largemarket theprobability moves may beunderestimatedifchanges ed asrequiringanindividuallyassessedimpairmentallowance, andexpected receiptsand c instruments. Even thoughpositionsmay change throughouttheday, the VaR only cant loansandadvances wherethereisnoobjective evidence ofindividual ed throughback which testing, examines how frequently actual cant loanoradvance onanindividualbasis.Itemsconsidered nancial product. The Parent Company’s market riskoriginates ows. The impairmentlossesareevaluated at cant (includingresidentialmortgages gure shouldoccur, onaverage, not t andlossonadailybasis. de ameaningful dencelevel. ice movements so subjectto likely tohave beyond the risk factors es, usinga ot clearly following positions wance is events. rmance storical use of ective and
is
131 Annual Report 2015 5 – or, in or, 1.14 3.10 s with 2014 osits of 0.61% 0.76% 5.52% 4.37% 0.35% 5.00% 2015 and 2015 al savings al savings ding adequate Interest Rate lities. The Parent Parent The lities. oating rate loans – 4 2015 3.58 P 4.44 P 5.13% 0.73% 0.25% 5.46% 0.26% 4.26% using prior month’s closing rate) using prior month’s Interest Rate 3 2014 4.51% 1.73% 1.05% 6.55% 5.92% 0.69% 4.69% 43.20 P Equity (In Millions) (In xed rate government bonds as part of its AFS and FVPL bonds as part of its rate government xed ects the Group’s internal cost of funds. In keeping with cost of funds. In keeping internal ects the Group’s uctuations, and constantly monitors its assets and liabilities. uctuations, 2 2015 4.12% 4.12% 0.92% 5.85% 0.80% 0.29% 4.22% 8.15 N/A P 7.63 P Foreign uctuations in interest rates. uctuations Exchange Consolidated Parent Company Consolidated Parent 1 41.98 P 29.09 P 29.09 3.94 1.32 2.49 1.05 64.98 10.52 38.98 5.31 2.18 112.23 21.83 47.82 9.98 4.69 P Interest Rate VaR position of the trading portfolio of the Parent Company is as follows: Company of the Parent of the trading portfolio position VaR Interest rate VaR for debt securities (Interest rate VaR for foreign currency denominated debt securities are translated to PHP currency foreign for VaR debt securities (Interest rate for VaR Interest rate No outstanding equity shares as of December 31, 2015 forwards and FX FX swaps for VaR Interest rate IRS for VaR Interest rate FX VaR is the bankwide foreign exchange risk exchange is the bankwide foreign VaR FX Subordinated debt Subordinated Loans and receivables Loans and Liabilities liabilities Deposit payableBills A summary of the A summary of the Investment securities* Due from banks (Forward) 2014: Peso Assets Due from BSP 3 4 5 Interest Rate liabi Risksensitive assets and interest rate rate sensitive interest rate risk originates from its holdings of interest Group’s The as of December 31, Company interest rates of the Group and of the Parent effective the average table for provides following The 1 2 Company follows prudent policies in managing its exposures to interest rate fl policies in managing its exposures prudent follows Company of fl comprised total respectively, loan portfolio, of the Group’s 58.48% and 79.49% and 2014, of December 31, 2015 As refl pool rate which to the transfer reference repriced periodically by are which of its deposit base, while provi stability and lengthen the term structure banking industry practice, the Group aims to achieve transactional banking requirements of customers. liquidity to cover Interest is paid on demand accounts, and which 26.08% constituted of total 27.61% deposits of the Parent Company as of December and 2015 2014, respectively. 31, of total dep and 44.62%, respectively, 27.77% constitute accounts and time deposits accounts, which Interest is paid on savings of December 31, 2014. as and 25.45% and 48.47%, respectively, as of December 31, 2015, Company the Parent rates, while interest rates on time deposits and speci market to prevailing reference account interest rates are set by Savings similar maturities. interest rate risk due to its holdings of fi value to fair exposed Group is likewise The to fl are sensitive of these investments values Market portfolios. accounts are usually priced by reference to prevailing rates of short-term government bonds and other money market instruments, market bonds and other money short-term government rates of to prevailing reference accounts are usually priced by market deposit rates in international money benchmark deposit rates and other deposits, inter-bank currency the case of foreign 2015 31 December Average daily Highest Lowest 2014 31 December dailyAverage HighestLowest P 53.56 100.85 28.33 12.19 30.29 1.52 57.74 76.99 40.34 9.56 18.01 2.84 10.13 18.62 3.10 132 Annual Report 2015 The following setsforth table therepricinggappositionofGroupandParent Company asofDecember31, 2015 and2014 (in its netincomeorresultinginadeclineinterestincome. gap would tendtoseeitsinterestratesensitive assetsrepricingearlierthanitsinterestratesensitive liabilities,restra earlier thanitwould needtorefi Accordingly, duringaperiodofrisinginterestrates,bankwithpositive gapwould beinapositiontoinvest inhigheryi A gapisconsideredpositive whentheamountofinterestratesensitive assetsexceeds theamountof interestratesensitive li A gapisconsiderednegative whentheamountofinterestratesensitive liabilitiesexceeds theamountofinterestratesensiti ofrepricing(interestratesensitive)sensitive) liabilities. assetsandthetotal thedifferencethe timeremainingtomaturity ifthereisnorepricing),andthenobtaining oftherepricing betweenthetotal intheGroup’sand liabilitiescontained balancesheetintotenorbuckets accordingtothetimeremainingnext repricing This analysis measurestheGroup’s tochanges susceptibility ininterestrates. The repricinggapiscalculatedby fi The gapanalysis asset-liability methodisusedbyofitsassetsandliabilitiestointere theGrouptomeasuresensitivity * Consistoffi Bills payable Deposit liabilities Liabilities andLoans receivables securities* Investment banks from Due Assets USD Due from BSP from Due Financial Assets uodntddb 9 9 1,189 6,321 – 3,396 399,302 224 17,553 59,027 227,725 2,048 297 290,419 – – 55,565 10,025 32,299 877 892 502 161,552 36,449 – – 2,960 221,671 224 17,553 Repricing gap Liabilities Financial Total Subordinated debt Bills payable Deposit liabilities Financial Liabilities Assets Financial Total andLoans receivables securities Investment Interbank receivables loans banks other from Due oa iaca ses20384,9 5,0 488,534 152,305 45,891 290,338 Deposit liabilities Financial Liabilities Assets Financial Total andLoans receivables securities Investment banks other from Due u rmBPP BSP from Due Financial Assets oa iaca iblte 8,9 6092596458,351 255,986 16,069 P 186,296 Repricing gap Liabilities Financial Total Bills payable nancialassetsatFVPL, AFS fi nance itsinterestratesensitive liabilities.Duringaperiodoffalling interestrates,abankwithpositive Notes toFinancialStatements nancialassetsandHTM fi Cnoiae Parent Consolidated Company P 0,6 6918,6 434,675 87,864 36,951 309,860 Months 4,3 P 146,539 P 0,4 P 104,042 6,2 2302111406,812 231,121 12,370 163,321 7,1 4072636439,266 246,326 14,027 178,913 8,1 5578,4 309,762 83,644 45,507 180,611 Up to 3 Months Up to 3 123––21,243 – – 21,243 639P 86,319 742P 67,452 nancialassets. ,8 ,4 ,6 19,085 9,660 2,042 7,383 ,6 8 86171,210 68,661 384 2,165 4.66% 3.03% 1.32% 1.57% 0.12% 2015 >3 to 12 Months >3 to 12 Months 982(P 29,822 451(P 24,581 Consolidated Consolidated 3.06% 5.55% 1.47% 0.19% 1.41% 2014 –P –P 2015 2014 otsTotal Months 4,5)P 143,257) 0,8)P 103,681) otsTotal Months 2.98% 1.30% 1.53% 0.04% 4.71% 2015 rst distributingtheassets >12 >12 –P –P ining thegrowth of st ratefl elding assets (interest rate uctuations. abilities. ve assets. millions): date(or 2.99% 86,319 27,863 5.45% 67,452 0.04% 1.37% 30,183 1.47% 2014
133 Annual Report 2015 parallel parallel 77,004 30,069 32,040 60,544 1,647,494) 1,248,875) 1,264,082) –P –P >12 >12 105,151) P Months Total 823,747) (P 632,041) (P 624,438) (P 100,298) P Months Total 2014 2015 2015 –P –P 2014 2015 Consolidated Consolidated 20,190 (P 21,909 (P Parent Company Parent Parent Company Parent Months 823,747 (P 632,041 (P Parent Company Parent 624,438 (P >3 to 12 to >3 Months >3 to 12 to >3 Change in interest rates (in basis points) Change in interest rates (in basis points) Change in interest rates (in basis points) 8.38% 4.19% (4.19%) (8.38%) 7,377 2,039 9,007 18,423 1,440 330 64,475 66,245 10.08% 5.04% (5.04%) (10.08%) 77,004 P 19,201 – – 19,201 60,544 P Up to 3 to Up 117,001 P Months 147,010 8,728 217,865 373,603 Up to 3 to Up P 149,567 10,779 185,917 346,263 108,458 P 165,200 32,346 62,099 259,645 Months 266,568 30,969 80,766 378,303 P 1,647,494 P 1,248,875 P 1,264,082 P 100bp rise 50bp rise 50bp fall 100bp fall 100bp rise 50bp rise 50bp fall 100bp fall 100bp rise 50bp rise 50bp fall 100bp fall P P uctuations in interest rates by using scenario analysis to estimate the impact of interest rate to estimate the impact scenario analysis using in interest rates by uctuations the year ended December 2014 31, 11.69% 5.85% (5.85%) (11.69%) income for the year ended December 2015 31, the year ended December 2015 31, As a percentage of the Group’s net interest income for Financial AssetsFinancial Due from BSP Change in annualized net interest income Change in annualized net interest income Change in annualized net interest income P As a percentage of the Parent Company’s net interest Financial AssetsFinancial Due from BSP P As a percentage of the Group’s net interest income for change in the interest rate curve as of December 31, 2015 and 2014: the interest rate curve in as of December 31, 2015 change Due from other banks loans receivablesInterbank Investment securities receivablesLoans and Total Financial Assets Liabilities Financial liabilitiesDeposit payableBills Total Financial Liabilities gap Repricing to fl Group also monitors its exposure The to interest income and interest expenses Group’s modeling the impact to the is done by This on its interest income. movements period. in the interest rate curve 12-month in a given changes net interest income due to a annualized Company’s and Parent in the Group’s table the estimated change sets forth following The 15,837 224 188,602 1,361 – – 30,488 148,690 481 26,167 877 8,731 54,599 – – 245,257 2,048 183,664 56,441 15,837 224 341,085 2,253 5,178 Due from other banks Investment securities Loans and receivables Loans and Assets Financial Total Liabilities Financial liabilities Deposit payableBills 262,845 32,676 126,574 422,095 Total Financial Liabilities gapRepricing 154,387 P 10,767 226,872 392,026 134 Annual Report 2015 of businessesinwhich theGroupanditssubsidiariesareengaged. believes inensuringitsforeign currency isatalltimeswithinlimitsprescribed for fi The Group’s foreign policyistomaintain currency exposure withinexistingrisklimits. regulations,andwithinacceptable Th all foreign currency-denominated liabilitiesheldintheFCDU. liabilities heldintheFCDUthataredenominatedsameforeign currency. liquidi In addition, theBSPrequiresa30.00% denominated loansandinvestments intheFCDU. Banks arerequiredby theBSP tomatch theforeign currency-denominated assets Foreign currency liabilitiesaregenerallyusedtofundtheGroup’s foreign exchange assetswhich generallyconsistofforeign foreign currency depositaccountswiththeGroup. Change in income before in income Change tax hnei qiy(5,8)(6,5)2452666,216 264,572 (262,055) (650,481) Change in equity Change in equity movement asofDecember31,2015 intheinterestratecurve and2014 (inmillions): possible change inthemarket pricesofquotedbondsclassifi The following setsforth table theestimatedchange intheGroup’s andParent Company’s duetoar incomebeforeandequity tax interest net Company’s Parent ofthe apercentage As hnei noebfr a (P before in income Change tax Change in income before in income Change tax or generatedfromremittances tothePhilippinesby personsoverseas for whoretain theirown benefi Foreign exchange liabilitiesgenerally consistofforeign currency-denominated depositsintheGroup’s FCDUaccountmadeinthe foreign currency-denominated liabilities(foreign exchange liabilities). Risk The Group’s foreign exchange riskoriginatesfromitsholdingsofforeign currency-denominated assets(foreign exchange assets) Currency Foreign hnei nulzdntitrs noeP income interest net annualized in Change hnei noebfr a (P before in income Change tax hnei qiy(7,2) 2007 7,5 686,542 272,656 (270,077) (670,424) inequity Change Change in equity noefrteya ne eebr3,21 13%56%(.9)(11.39%) (5.69%) 5.69% 11.39% 31, 2014 December ended year the for income Notes toFinancialStatements ed underfi 100bp rise 50bp rise 50bp fall 100bp fall 100bp fall 50bp rise 50bp rise 100bp 5prs 0prs 0pfl 25bp fall 10bp fall 10bp rise 25bp rise 5prs 0prs 0pfl 25bp fall 10bp fall 10bp rise 25bp rise ,1,8 P 1,319,185 (P 5prs 0prs 0pfl 25bp fall 10bp fall 10bp rise 25bp rise 5prs 0prs 0pfl 25bp fall 10bp fall 10bp rise 25bp rise 7206 3500 1,2 799,961 317,720 (315,040) (782,086) (P 8841 3382 3,2 847,543 336,429 (333,862) (828,441) 889 (P 58,889) 473 (P 44,703) 156 (P 71,536) 001 (P 50,051) nancial assetsatFVPLand AFS fi Change in interest rates (in basis points) basis (in rates interest in Change Change in interest rates (in basis points) basis (in rates interest in Change Change in interest rates (in basis points) basis (in rates interest in Change Change in interest rates (in basis points) basis (in rates interest in Change Change in interest rates (in basis points) basis (in rates interest in Change nancial institutions thatareengagedinthesametypes 5,9 (P 659,592 Parent Company Parent Company Parent Company 894 P 28,914) 794 P 17,994) 371 P 23,721) 012 P 20,142) Consolidated Consolidated 2015 2015 2014 2014 2014 t orfor thebenefi nancial assets,broughtaboutby 5,9)(P 659,592) 036P 20,306 868P 28,688 370P 23,740 817P 18,147 t ofa third party, ty reserve on reserve ty Philippines 1,319,185) easonably currency- 45,659 72,479 e Group 59,771 51,078 and with 135 Annual Report 2015 49,353) 611,049 641,021 357,916) Other Currencies Total PHP Other Currencies Total PHP 2,756 11 2,767 123,776 2,698 11 2,709 121,169 6,000– 6,000 268,045 6,000 – 6,000 268,045 11,991 1,354 13,345 596,784 54,122 11 54,133 2,449,398 61,571 743 62,314 2,786,707 54,187 11 54,198 2,452,322 15,447 286 15,733 703,616 58,786 743 59,529 2,662,132 14,994 1,354 16,348 731,071 14,963 286 15,249 681,963 ($9,697) $12,133 $2,436 (P 310,161 23,670 333,831 14,928,926 $11,362 $2,973 $14,335 P 115,506 − 115,506 5,165,440 115,506 − 115,506 5,165,440 316,732 1,277 318,009 14,221,324 $10,692 $2,973 $13,665 P 309,739 1,277 311,016 13,908,615 328,267 23,670 351,937 15,738,635 888,738 730 889,468 39,777,016 250,699 3,187 253,886 11,353,788 265,450 3,187 268,637 12,013,432 904,055 730 904,785 40,461,999 (132,295) (2,000) (134,295) (6,192,153) (132,295) (2,000) (134,295) (6,192,153) ($16,598) $12,133 ($4,465) (P 1,851,105 33,488 1,884,593 84,307,539 1,741,408 19,355 1,760,763 78,741,347 1,564,418 18,601 1,583,019 70,792,606 1,614,063 18,601 1,632,664 73,012,742 1,910,494 33,488 1,943,982 86,963,420 1,793,896 19,355 1,813,251 81,088,665 2014 USD 2014 USD Consolidated 314,074 Parent Company Parent 619,609 667,469 674,996 exposure to foreign exchange risk. Included in the table are the Group’s in the table risk. Included are the Group’s exchange to foreign exposure Other Currencies Total PHP Other Currencies Total PHP 2,788 7 2,795 131,546 8,000 − 8,000 376,480 8,000 − 8,000 376,480 2,682 7 2,689 126,557 37,145 22 37,167 1,749,078 17,543835,871 217 17,760 81,763 83,180 1,417 3,915,125 53,478 830 54,308 2,556,035 34,213 34,235 22 1,611,107 46,024 830 46,854 2,205,239 $9,207 $5,722 $14,929 P 18,280 217 18,497 870,570 73,3933,521,218 1,417 74,810 $1,699 $5,722 $7,421 P 477,612 − 477,612 22,476,428 22,476,428 477,612− 477,612 314,21015,768,625 20,698 334,908 $11,464 $2,854 $14,318 P 332,199 352,897 20,698 16,615,197 710,627 986 711,613 33,488,871 492,412− 492,412 23,172,924 $10,287P $2,854 $13,141 315,835 2,932 318,767 14,966,432 294,301 13,953,016 297,233 2,932 720,262 986 721,248 33,942,299 392,872 − 392,872 18,488,559 392,872 − 392,872 18,488,559 (153,326) (4,345) (7,422,016) (157,671) (153,326) (4,345)(153,326) (157,671) (7,422,016) 1,785,161 19,059 1,804,220 84,915,135 1,932,186 29,126 1,961,312 92,274,745 1,854,827 19,059 1,873,886 88,193,616 1,405,689 18,222 1,423,911 67,017,476 1,343,583 18,222 1,361,805 64,094,780 2,009,360 29,126 2,038,486 95,906,621 2015 USD 2015 USD nancial assets nancial nancial assets nancial nancial assets nancial nancial assets nancial expenses expenses Assets Cash and other cash items and Parent Company’s assets and liabilities at carrying assets currency: by (stated amounts in US Dollars), categorized Company’s and Parent The table below summarizes the Group’s and Parent Company’s Company’s and Parent the Group’s summarizes tableThe below Currency spot Currency forwards Currency Exposure Net Other liabilities Other Bills payablesBills Accrued interest and other Assets Cash and other cash items AFS fi AFS fi HTM receivables Loans and Accrued interest receivable assets Other Liabilities liabilities Deposit Due from other banks Financial assets at FVPL Due from other banks Financial assets at FVPL fi AFS fi HTM receivables Loans and Accrued interest receivable assets Other Liabilities liabilities Deposit payablesBills Accrued interestand other liabilities Other spot Currency forwards Currency Exposure Net 136 Annual Report 2015 isduetotheeffectThe incomeandequity impactinpre-tax offoreign currency behaviour toPhilippinepeso. reasonably possiblechange isasfollows indices,with all othervariables heldconstant, inequity (inmillions): The effect onthe GroupandParent Company’s asaresultofchange equity inthefair valueinstruments ofequity heldas AFS of individualstocks. The priceriskexposure non-tradingequity arisesfromtheGroup’s investment portfolio. pricerisk istheriskthatfairEquity values ofequitieschange asaresultofmovements inboththelevel indi ofequity Risk Price Equity and other currencies per Philippine peso on the pre-tax income and equity (inmillions). incomeandequity and othercurrencies perPhilippinepesoonthepre-tax The following setsforth, table for theperiodindicated,impactofrangereasonablypossiblechanges intheUS$exc te 1)()(1) 1 (547) P (1) (83) 1 2% (1%) (2%) 1% USD 2014 Other USD Other te 1)()(1) 1 (525) P (1) (75) 1 (1) 2% 1 (296) (1%) (2%) 1% (1) (13) 1 (1%) (2%) 1% USD 2014 Other USD Other Other USD Other te 1)()(1) 1 (287) (1) (11) 1 (1%) (2%) 1% Other USD Other 2015 2014 2014 2015 S %P 2% USD 2015 S %P 2% USD 2015 Notes toFinancialStatements Exchange Rate Exchange Rate Change in Change in Foreign Foreign Parent Company equity indexequity equity indexequity Consolidated Change in Change in Pretax Income Pretax Pretax Income Pretax Parent Company Sensitivity of Sensitivity of Consolidated 1%P +10% P +10% 1%P +10% 1%P +10% 1%0.4 -10% 0.4 -10% 1%(41.0) -10% (41.0) -10% 3P 83 5P 75 3P 13 1P 11 Sensitivity of Sensitivity of Effect on Effect Effect on Effect Equity Equity ces andthevalue 23.6 23.6 10.6 10.6 Equity Equity 296 525 287 547 hange rate duetoa 137 Annual Report 2015 et ows ows 9,295 10,053 79,632 nexpected nexpected sset portfolio sset portfolio −P –P 154,710 P − P – P 19,686 P in asset and liability levels uctuations − P – P 29,557 P December 2014 31, December 2015 31, – P − P 1 year 2 years 1 to 3 years 2 to 5 years 3 to Total 23,417) P 1 year 1 to 2 years to 2 3 years to 3 5 years Total Less than Less Less than Less 9,295 P 77,004 −− − − 77,004 19,201 −− −− 19,201 10,053 P 85,676 133,763 26,228 23,463 178,063 447,193 207,162 170,370 1,187 10,581 8,522 397,822 104,137 − − − − 104,137 103,025 − − − − 103,025 100,904) (P 106,258 146,953 30,744 30,267 163,232 477,454 P On demand On −11,291 −7,369 −18,660 −741 −7,369 −355 −1,262 − − − −997 −346 − − − −214 − − −419 −96 − −66 − −3 − − − − − −− − −11,291 − −741 154,580 −355 − − 1,187 −66 −1,262 −997 −346 3,212 −3 −214 −96 8,522 −419 167,501 −2841792375,0355,735 −3,3863,0423,03253,20762,667 −143,28327,52326,998104,990302,794 On demand On le of the Parent Company’s assets and liabilities, based on contractual undiscounted cash fl undiscounted based on contractual assets and liabilities, Company’s le of the Parent Philippines ned as the current and prospective risk to earnings or capital arising from the Parent Company’s inability to Company’s or capital risk to earnings Parent arising from the and prospective ned as the current maturity profi maturity nancial assets nancial nancial assets nancial – 2,444 3,922 2,462 50,165 58,993 Time PositionNet (P Savings payableBills checks Manager’s Accrued interest and other expenses liabilities Derivative liabilities: Other payable Accounts payable Acceptances deposits Due PDIC to Margin Other credits - dormant Due of the the to Treasurer Miscellaneous Total liabilities Financial LiabilitiesFinancial liabilities Deposit Demand Due from BSP Due from other banks Financial assets at FVPL fi AFS receivables Loans and Financial AssetsFinancial Cash and other cash items Due from other banks BSPother – – – – 15,837 15,837 from from Due – – – – Due Financial assets at FVPL 60,544 60,544 fi AFS receivablesLoans and (Forward) – – 342 130,977 1,797 20,509 5,154 15,847 124,264 3,634 291,597 10,927 Financial AssetsFinancial Cash and other cash items P (in millions): liquidity situations and the securing of money market lines. market and the securing of money liquidity situations the shows table The below conditions. The Parent Company seeks to ensure liquidity through a combination of active management of liabilities, a liquid a management of liabilities, a liquid to ensure liquidity seeks active through a combination of Company Parent The conditions. u to address any facilities composed substantially in reserves of deposits of repurchase and liquid securities, the maintenance due to changes in the Parent Company’s business operations or unanticipated events created by customer behavior or capital customer behavior mark created by events business operations or unanticipated Company’s in the Parent due to changes Liquidity Risk andLiquidity defi risk is generally Funding Management unacceptable incurring become due without or costs. losses when they meet its obligations maintaining funding capacity fl to accommodate liquidity management involves Company’s Parent The 138 Annual Report 2015 .7. This accountconsistsof: Demand deposit account deposit Demand Local banks Due from other banks other from Due Foreign banks This accountconsistsof: Interest IncomeonDuefromBSPandOtherBanks This accountconsistsof: Due fromOtherBanks Others account deposit Special Due from BSP from Due 351,204 3,926 1,193 294 5,442 166,621 164,740 3,917 – 175,903 1,193 – 5,347 3,097 9 158,414 – 251 – 334 251 – – 2,345 294 3 – – Net Position – – 2,993 334 Total liabilities 192 – Treasurer to the ofthe Due 334 3 – – – – Miscellaneous 86,960 86,960 – 334 976 822 – 88,943 88,943 – 192 Other – – 976Margin 822 – – – Other – liabilities:DueDerivativeAcceptances – expenses other and interest Accrued credits Accounts – – Manager’sBills Time payable to deposits - Deposit liabilities payable Financial Liabilities Savings payable dormant Demand PDIC checks liabilities 102 – 102 – Due fromBSP DUE FROM BSP AND OTHER BANKS while scenariostresstestsareconductedperiodically. set todeterminesuffi Behavioral MCOtocapture agoingconcernview. Furthermore, ratiosandmonitoringoflargefundsproviders internalliquidity report, aswell asananalysis ofavailable liquidassets.Insteadofrelying solelyoncontractual maturities profi riskis monitored andcontrolledprimarilybyLiquidity agapanalysis ofmaturities ofrelevant assetsandliabilitiesrefl ciency ofliquidassetsover ismanagedby depositliabilities.Liquidity theParent andsubsidiariesonadailybasis, h l p i e –2 25 25 – Philippines – Notes toFinancialStatements On demand P P (P 220,406 315,805 P P 027 (P 90,227) 95,399 68,886,859 86,318,501 17,291,115 2015 140,527 P P 21,243,492 12,237,681 osldtdParent Company Consolidated 9,005,811 2015 osldtdParent Company Consolidated Less than P osldtdParent Company Consolidated P 2015 5,0 P 554,802 4,4 31,003 146,340 0,4 P 701,142 097 P 30,977) er1t er o3yas3t er Total to 3 5years to 2 3years 1to 2years 1 year 042013 2014 P P 57,088,508 10,315,000 67,451,648 P P 48,140 11,649,877 11,649,877 17,552,823 17,552,823 December 31, 2014 December 5,902,946 450,734 481,737 2014 076P 20,786 2014 P P P P 182,662 15,430,000 61,433,089 159,792 77,003,616 22,870 220P 22,270 2015 140,527 P P 19,200,544 10,859,956 8,340,588 2015 le, theParent Company uses 2015 P P 6,8 P 465,089 3,0 P 432,703 7,3 P 174,137 23611,331 32,386 042013 2014 P P ected intheMCO 60,543,867 52,514,038 7,990,000 P 39,829 P 15,836,701 5,883,622 9,953,079 2014 have been 396,819 408,150 95,989 2014 139 Annual Report 2015 72 2014 19,413 2014 cantly vatives vatives 529,169 149,358 548,582 2,123,878 997,632 813,896 289,557 37,075,238 34,253,420 36,526,656 P 1,992,774 8,012,435 3,918,504 3,804,374 P P P 301.58 million 301.58 ns one or more 2015 19,413 2015 111,470 293,311 273,898 7,766,369 992,617 556,570 595,351 247.10 million, P 247.10 720,983 299,926 6.32 million for the 46,834,199 38,663,049 46,540,888 P 5,465,417 2,865,521 2,299,970 P P P nancial assets of the Group, which nancial assets of the Group, which 17.62 million, respectively, for the Group, for million, respectively, 17.62 72 2014 35,823 2014 150,124 529,169 564,992 2,277,687 997,632 289,557 924,848 37,911,860 38,476,852 35,484,049 P 2,310,086 3,918,504 4,232,638 8,440,699 P P P 14.47 million and P million 14.47 0 38.74 million for the Group and P 2015 Consolidated Company Parent 20,168 2015 111,470 310,424 290,256 Consolidated Company Parent 979.61 million for the Group and Parent Company, respectively, as of respectively, Company, the Group and Parent 979.61 million for 8,213,921 114.50 million for the Group and Parent Company, respectively, as of respectively, Company, the Group and Parent million for 114.50 556,57 595,351 299,926 40,193,418 48,518,809 48,829,233 1,106,252 P 1,386,524 2,299,970 3,644,697 6,244,593 P P P 1.13 billion and P 1.13 nancial assets at FVPL range from 2.50% to 10.63% in 2015, from 2.75% to 10.63% in from 2.75% to 10.63% in 2015, nancial assets at FVPL range from 2.50% to 10.63% nancial assets at FVPL range from 1.63% to 13.75% in 2015, 2014, and 2013. Effective Effective and 2013. 2014, in 2015, to 13.75% nancial assets at FVPL range from 1.63% 122.92 million and P 122.92 0.06 million in 2015. No impairment loss was recognized in 2014 and 2013. in 2014 recognized No impairment loss was 0.06 million in 2015. 17.64 million, respectively, for the Parent Company. Both realized and unrealized gains and losses and unrealized realized Both Company. the Parent for million, respectively, 17.64 16.89 million and P million 16.89 ows that otherwise would be required by the contract, or it is clear with little or no analysis when a similar hybrid when a similar hybrid no analysis or that otherwise the contract, or it is clear with little ows be required by would rst considered that separation of the embedded derivative is prohibited. On this basis, management has determined that is prohibited. rst considered that separation of the embedded derivative nancial assets designated at FVPL are included under ‘Trading and securities gain - net’ (Note 20). and securities under ‘Trading nancial assets designated at FVPL are included papers - net 478.25 million in 2015, 2014 and 2013, respectively (Note 20). respectively and 2013, 2014 478.25 million in 2015, nancial assets include fair value losses of P value nancial assets include fair Parent Company as of December 31, 2015 and 2014. Private bonds Private * Includes fully impaired equity investments with acquisition cost of P Quoted Government bonds (Notes and 27) 17 Equities Unquoted Private bonds and commercial Equities - net * Total Unquoted equity securities and fair value loss of P value and fair Treasury notes Treasury bills Treasury bonds Private Held for trading bonds Government which are deemed not clearly and closely related to its equity host. In this regard, PAS 39 provides that if a contract contai that if a contract 39 provides deemed not clearly and closely related to its equity are host. In this regard, PAS which Financial assets designated at FVPL of the Parent Company consist of investments in shares which contain multiple embedded deri which in shares consist of investments Company Financial assets designated at FVPL of the Parent does not signifi at FVPL unless the embedded derivative contract designate the entire hybrid an entity may embedded derivatives, modify the cash fl instrument is fi instrument as at FVPL. shall be designated the investments in shares designated at FVPL amounted to P its investment from Company the Parent Dividends earned by Financial assets designated at FVPL Derivative assets (Note 24) Total on HFT and fi fi peso-denominated interest rates for Effective fi currency-denominated foreign interest rates for in 2013. to 10.63% and from 1.25% 2014, Assets AFS Financial account consists of: This TRADING AND INVESTMENT SECURITIES INVESTMENT AND TRADING December 31, 2015, and fair value gains of P value and fair December 31, 2015, Net unrealized gainsAFS fi (losses) This account comprises of shares of stocks of various unlisted private corporations. unlisted private of various account comprises of shares of stocks This As of December 31, 2015 and 2014, HFT securities include fair value loss of P value include fair HFT securities and 2014, of December 31, 2015 As was charged to operations, amounted to P charged was December 31, 2014. The fair value gains or losses are recognized under OCI. Impairment loss on AFS fi under OCI. Impairment loss on or losses are recognized gains value fair The December 31, 2014. and P Financial Assets at FVPL Assets Financial of: account consists This 8. 8. 140 Annual Report 2015 the statement of comprehensive income amounted to P amounted income ofcomprehensive statement the Government bonds (Note 17) (Note bonds Government the principalandinterestdueonreclassifi Effective interestratesonthereclassifi respectively. unrealized lossesofP rvt od* 5,4 5,3 5,0 9,5 616 15,420 (6,136) 392,555 353,408 359,531 359,549 reclassifi been not securities these Had P **Consist ofUSdollar-denominated bondswithface value of$8.04million *Consist ofUSdollar-denominated bondswithface value of$46.44millionand$51.63 millionasofDecember 31,2015 and2014, Private bonds** bonds* Government 2014 Private bonds** bonds* Government 2015 As ofDecember31,2015 and2014, HTM fi and 2014, respectively. This accountconsistsof: HTM Financial Assets to 5.71%in2014, andfrom1.30% to7.79% in2013. and 2013. Effective interestratesfor foreign currency-denominated AFS fi Effective interestratesfor peso-denominated AFS fi respectively. Noimpairmentlosswas recognized onthesesecuritiesin2015, 2014 and2013. HTM fi As of October 2, 2008, the total carrying value of carrying AFS fi thetotal As ofOctober2,2008, assets toHTM fi to maturity ratherthantoexit ortradetheseinvestments intheforeseeable future andreclassifi asapprovedIn 2008, by itsBOD, theParent Company identifi Reclassifi 11.55% in2014, andfrom2.36%to11.55% in2013. Effective interest ratesfor foreign currency-denominated HTM fi in 2013. Effective interestratesfor peso-denominatedHTM fi Private bonds Unamortized premium -net premium Unamortized and euro-denominatedbondswithface value of€2.71millionasDecember31,2015 and2014 nancial assetsreclassifi cationofFinancial Assets nancialassetseffective October2,2008. 47.44 milliondeferred under‘Netunrealized gains(losses)on AFS fi ed from AFS fi Face Face Value Notes toFinancialStatements P P P ,5,7 P 2,454,372 2,325,370 P 2,325,370 ,0,3 P 2,703,732 ,1,2 P 2,813,921 378,362 378,344 375,305 393,996 (3,055) 19,628 19,628 (3,055) 393,996 375,305 378,344 378,362 ed securitiesrangefrom5.68%to8.99%. The Parent Company expects torecover 100.00% of fi to HTM ed nancialassetsreclassifi nancial assets with total face nancial assetswithtotal amountofP ed investments P totaling Cost Original nancial assetsrangefrom4.13% to9.13% in2015 and2014 to7.50% andfrom6.00% nancial assetsrangefrom2.14% to7.25% in2015 andfrom1.63% to8.92%in2014 nancial assets, additional mark-to-market gain that would have been credited to ,8,3 P 2,780,337 ,1,5 P 3,015,556 ,3,6 P 3,139,868 nancial assetsreclassifi 2,637,212 P 395.74 million, P ed assetsfor which ithadaclearchange ofintenttoholdtheinvestments P P 12,891,098 15,697,345 16,136,147 2,806,247 nancial assetsrangefrom2.26%to10.72% in2015, from4.61%to Vle Value Carrying Fair Value edfrom AFS fi 438,802 osldtdParent Company Consolidated 2015 3.09 millionandP ,0,0 P 2,908,605 2,390,697 P 2,390,697 ,6,0 P 2,766,002 ,5,9 P 2,555,197 nancial assetsrangefrom1.50% to7.45% in2015, from1.50% 324.67 million and P and million 324.67 ed toHTM fi nancialassetshave thefollowing balances: P P 12,024,483 11,662,922 12,109,344 361,561 244.24 millionandP 84,861 nancialassets’. 3.15 billion,asofDecember31,2015 and2014, ,4,6 P 2,842,462 ,3,1 (P 3,235,017 2014 2,771,976 (P ,6,7 (P 3,165,972 nancial assetsamountedtoP ed thoseinvestments from AFS fi 421.40 million in 2015, 2014 and 2013, 2014 2015, 2013, in and million 421.40 in Deferred Gain Equity Unrealized Net (Loss) Amortization Unamortized P P 13,945,645 11,306,923 13,663,170 2,356,247 282,475 56.35 millionmatured in2015 2015 ,5 (P 4,952 ,8)(P 1,088) ,4)(P 4,143) ,8)(P 1,184) 9.04 billion,with P P 10,940,807 11,302,368 11,353,788 respectively, 361,561 16,273) 35,901) 11,993) 51,420 27,413) nancial 2014 141 Annual Report 2015 2014 80,807 352,134 (242,963) (6,225,088) 3,158,296 27,680,871 13,024,244 about future about future 251,725,272 245,257,221 251,482,309 210,939,350 P P 1.00 billion as of 2014 Amounts % 9,163,500 3.64 3,537,858 1.41
17,024,833 6.76 32,491,766 12.91 32,695,781 12.99 14,059,284 5.58 251,725,272 100.00 142,752,250 56.71 P 108,973,022 43.29 P 2014 2013 2015 71,514 239,537 P 949,382 1,061,457 2,872,124 P P 1,683,205 1,744,705 (168,620) P (6,151,786) 11,147,748 29,240,653 63.00 1.72 billion and P 1.72 265,965,414 265,796,794 259,645,008 225,505,499 P P 9 0.21 million, respectively in 2015 and in 2015 0.21 million, respectively 2015 2015 1.59 billion was not recognized by the Group by not recognized billion was 1.59 929,266 232,464 2014 9,153,000 3.44 Amounts % 1,764,664 0.66 4,948,073 1.86 P 1,785,184 2,946,914 22,018,279 8.28 41,243,643 15.51 98,400,315 37.00 19,272,656 7.25 P 167,565,09 265,965,414 100.00 P 283,460 (497,418) P (6,734,550) 43,497,555 14,669,504 297,153,280 239,200,179 290,418,730 297,650,698 P P 760.38 million and P 760.38 352,134 3,227,341 2015 Consolidated Company Parent 2014 320,699 (278,335) Amounts % (6,994,670) 48,012,782 12,750,550 9,163,500 3.08 5,948,020 2.00 317,034,782 309,761,777 316,756,447 255,950,751 55,764,189 18.73 55,764,189 22,998,122 7.73 22,998,122 33,651,333 11.31 14,059,284 4.72 P P 141,584,448 47.57 P 297,650,698 100.00 156,066,250 52.43 52.43 156,066,250 P 2014 2013 277,144 P 968,485 1,063,232 P 1,776,157 1,811,975 3,021,786 P P Consolidated Company Parent 1.00 billion as of December 2015, respectively, 31, and P 2015 2015 997,797 262,027 3,710,591 1.17 9,153,000 2.89 Amounts % P 4,948,073 1.56 3,100,802 1,840,978 64,153,568 20.23 26,271,491 8.29 24,504,252 7.73 P 317,034,782 100.00 132,740,975 41.87 P 184,293,807 58.13 P Consolidated Parent Company Consolidated Parent 1.37 billion and P amounts of secured and unsecured loans and receivables (gross of unearned discounts and allowance for impairment impairment for and allowance (gross of unearned discounts receivables amounts of secured and unsecured loans and 14.45 million, respectively, in 2014, are funded by relending facilities with local government agencies (Note 17). local government with relending facilities are funded by in 2014, respectively, million, 14.45 nancial assets nancial ows of these receivables were included in their fair value measurement (Note 10). measurement value included in their fair were of these receivables ows nancial assets nancial Trade-related lending other banks other of the Philippines 1.30 billion and P 1.30 HTM fi HTM Loans secured by estate Real Unearned discounts Unearned and credit losses) of the Group and Parent Company are as follows: Company and credit losses) of the Group and Parent on the effectivity date of acquisition as these receivables were measured at fair value on acquisition date. Any uncertainties Any on acquisition date. value measured at fair were date of acquisition as these receivables on the effectivity cash fl BSP Reporting on the Information Consumer lending Consumer Others* Allowance for impairment and credit losses (Note 15) AFS fi AFS The separate valuation allowance of acquired loans and receivables from PDB amounting to P of acquired loans and receivables allowance separate valuation The December 2014, respectively. 31, amounting to P Company Outstanding loans of the Group and the Parent mortgage Chattel out Deposit hold Shares of stock of Guarantee by the Republic LOANS AND LOANS RECEIVABLES of: account consists This Others loans Unsecured Interest Income on Trading and Investment Securities Investment and Trading on Interest Income consists of: account This P *Others include employee loans and foreign bills purchased. loans and foreign *Others include employee The and Group’s Parent Company’s loans and discounts under corporate and commercial lending include unquoted debt securities P of carrying amount with Financial assets at FVPL Loans and discounts Loans and Corporate and commercial lending 9. 9. 142 Annual Report 2015 Information on the concentration of credit as to industry oftheGroupandParentInformation Company ontheconcentrationofcreditastoindustry follows: Secured when three (3) or more installments areinarrears. when three(3)ormoreinstallments balancethereofshallbeconsidered nonper In thecaseofloansthatarepayable outstanding thetotal inmonthlyinstallments, inwhich balancethereofshallbeconsiderednonperforming. semi-annual, orannualinstallments, outstanding case,thetotal past dueinaccordancewithexisting BSPrules andregulations. This shallapplytoloanspayable inlumpsumandloanspayabl Generally, NPLsrefer toloanswhoseprincipaland/orinterestisunpaidfor(30)days thirty ormoreafter duedateorafter t Unsecured As ofDecember31,2015 and2014, securedandunsecurednon-performing loans(NPLs)oftheGroupandParent Company follow: loanportfolio.of total As ofDecember 31,2015 and2014, theParent Company doesnothave creditconcentrationinany partic The oreconomicsectorexcee BSPconsidersthatloanconcentrationexists loanexposure whenthetotal toaparticularindustry Others* Mining and quarrying Others* Mining and quarrying Education activities service food and Accommodation Agriculture Education activities service food and Accommodation Agriculture *Others consist of administrative and support service, health,householdandotheractivities. *Others consistofadministrative andsupportservice, Professional, scientifi recreation and entertainment Arts, Public administration and defense Construction Financial intermediaries Transportation, storage and communication water and gas Electricity, Manufacturing trade retail and Wholesale Professional, scientifi recreation and entertainment Arts, Public administration and defense Construction Financial intermediaries Transportation, storage and communication Real estate, renting and business services business and renting estate, Real Real estate, renting and business services business and renting estate, Real *Others consist of administrative and support service, health,householdandotheractivities. *Others consistofadministrative andsupportservice, water and gas Electricity, Manufacturing trade retail and Wholesale c and technical activities technical c and c and technical activities technical c and Notes toFinancialStatements Cnoiae Parent Consolidated Company P P 8,009,839 3,884,797 4,125,042 2015 2015 2015 P P P P 6,6,1 100.00 265,965,414 1,3,8 100.00 317,034,782 3949623.31 73,904,956 306357.27 23,046,395 6633410.02 26,653,354 5546614.36 45,524,686 P 8360714.41 38,336,067 694968.49 26,924,936 128998.00 21,288,949 7846811.94 37,854,608 437479.18 24,377,487 7608921.67 57,640,859 214976.99 22,164,997 P 6461211.48 36,426,152 904807.15 19,014,800 3745012.67 33,704,510 ,5,0 1.88 5,953,404 ,0,0 2.59 8,200,000 ,0,0 3.08 8,200,000 ,7,6 1.53 4,076,266 ,7,7 3.15 9,973,878 ,6,4 2.39 7,563,543 6,651,369 ,1,7 1.36 4,312,472 mut % Amounts mut % Amounts ,7,8 0.56 1,479,981 ,7,8 0.47 1,479,981 ,0,6 1.92 6,100,963 ,2,6 1.29 3,424,162 ,1,5 1.62 4,310,755 ,9,3 3.19 8,490,130 ,7,9 2.85 7,570,591 ,9,0 2.78 7,397,503 3,523,173 ,0,1 2.40 7,603,811 3,128,196 2014 Parent Company Consolidated P P 3,256,796 4,998,612 1,741,816 2014 2014 2015 P P 9,5,9 100.00 297,650,698 P 5,2,7 100.00 251,725,272 P 5068113.93 35,066,881 006446.73 20,036,404 9015213.10 39,001,522 6038210.33 26,013,822 887397.51 18,897,359 8122612.82 38,152,286 5017813.92 35,051,788 7 59746.99 17,599,794 141708.53 21,461,780 9212623.26 69,241,216 6973012.40 36,917,310 127207.14 21,267,210 027173.46 10,297,107 7112422.69 57,121,204 187717.33 21,817,761 ,0,4 1.62 4,809,548 ,0,0 2.75 8,200,000 ,0,0 3.26 8,200,000 ,7,4 1.34 3,375,340 ,0,8 0.60 1,504,082 ,6,3 1.10 2,768,335 ,8,1 2.82 8,384,612 ,3,5 3.31 8,337,358 ,3,2 2.50 7,435,222 ,7,8 1.27 3,772,581 ,9,7 1.59 3,997,278 ,1,3 1.95 4,912,031 ,0,7 0.51 1,504,774 ,1,4 2.29 6,813,145 ,1,2 2.95 7,418,220 mut % Amounts mut % Amounts hey have become P e inquarterly, P ular industry. 2,030,454 1,925,864 3,956,318 ds 30.00% ds 30.00% forming 2014 143 Annual Report 2015 ing f the bject .00% 2014 2014 1,500 2,439 21,246 1, 2014, 1, 2014, 50,000 ers of the 145,027 166,273 P 166,273 P 6,183,223 9,570,641 2,986,311 2,976,700 6,016,950 9,729,506 P P ll be considered ll be considered – – 2015 – 2014 2013 166,273 166,273 136,901 158,865 P P 11,158,515 P 2015 11,295,416 P 1,500 2,439 P P 50,000 – – – 166,273 300,000 9,665,532 10,185,744 10,019,471 P P (912) 2014 (5,970) 21,246 2015 520,517 P 534,881 67,502 P Parent Company Parent – 12,257,457 12,324,959 xed interest rates ranging from 1.82% to 8.00% interest rates ranging from 1.82% xed P P 2015 Consolidated Company Parent (37,893) 373,591 534,881 (123,397) P P 0.46 billion, respectively, in 2014. Gross and net NPL ratios of in 2014. 0.46 billion, respectively, 10,190,949 10,372,075 – 2014 2013 3.96 billion and P 159,118 181,126 14,674,211 P 14,515,093 P P P Consolidated Company Parent ed as performing until interest and principal payments are brought current or the loans are are brought current until interest and principal payments ed as performing 2015 nancial assets nancial 87,521 15,813,206 15,900,727 P P ed as Loss in the latest examination of the BSP which are fully covered by allowance for credit losses, for allowance by are fully covered of the BSP which in the latest examination ed as Loss ed as loss but are fully covered by allowance was removed by the BSP through Circular No. 772. Previous No. 772. Previous the BSP through Circular by removed was allowance by ed as loss but are fully covered nition of NPL under Circular No. 772, gross and net NPLs of the Parent Company as reported to BSP amounted Company No. 772, gross and net NPLs of the Parent nition of NPL under Circular 1.82 billion, respectively, in 2015 and P in 2015 billion, respectively, 1.82 ed as nonperforming in accordance with BSP regulations, or when, in the opinion of management, collection of interest regulations, or when, in the opinion of management, in accordance with BSP nonperforming ed as cation those loans classifi Additional acquisition Additional PDB CBCC CBC-PCCI Corporation CBC Forex CIBI Associate Manulife China Bank Life Assurance Corporation (MCB Life) Balances at beginning of year Subsidiaries CBSI Share in net losses Share in net unrealized losses on AFS fi Balances end at of year 5.00 and P billion Receivables from customers from Receivables the Parent Company are 1.89% and 0.69%, respectively, in 2015 and 1.58% and 0.18%, respectively, in 2014. respectively, and 0.18%, and 1.58% in 2015 and 0.69%, respectively, are 1.89% Company the Parent and Receivables Interest Income on Loans account consists of: This This account consists of investments in: account consists of investments This EQUITY INVESTMENTS EQUITY banking regulations allow banks that have no unbooked valuation reserves and capital adjustments to exclude from nonperforming from nonperforming reserves valuation and capital to exclude adjustments no unbooked banks that have banking regulations allow classifi to P nonperforming at the same time that they become past due in accordance with existing BSP regulations, i.e., the entire outstand BSP regulations, accordance with existing become past due in time that they at the same nonperforming twenty percent (20.00%) o due when the total be considered as past shall reaches of arrearages amount the receivable balance of total loan balance. are classifi Loans are not reclassifi Loans or principal is doubtful. appear assured. payments BSP regulations, and future existing in accordance with restructured January Effective loans shall also be considered as NPLs. the requirements to be treated as performing do not meet which Loans of NPLs classifi the exclusion shall not be accrued. on said receivables that interest provided defi on the revised Based In the case of loans that are payable in daily, weekly, or semi-monthly installments, or semi-monthly the total outstanding balance thereof sha weekly, in daily, of loans that are payable In the case The movement of investment in associate follows: of investment movement The Unquoted debt securities debt Unquoted As of December 31, 2015 and 2014, 58.86% and 67.75%, respectively, of the total receivables from customers of the Group were su of the total from customers of the Group were receivables respectively, 58.86% and 67.75%, and 2014, of December 31, 2015 As of the total from custom receivables respectively, and 79.01%, 62.10% and 2014, of December 31, 2015 As to interest repricing. peso-denominated receivables. for to 23.38% in 2013 1.00% and from to 29.00% in 2014, from 1.25% to 30.00% in 2015, Parent Company were subject to interest repricing. Remaining receivables carry subject to interest repricing. receivables annual fi were Remaining Company Parent and from 1 receivables currency-denominated foreign for in 2013 to 10.65% and from 1.95% in 2014, from 0.98% to 10.50% in 2015, The foregoing balances represent the acquisition cost of the Parent Company’s subsidiaries and associate. Company’s balances represent the acquisition cost of the Parent foregoing The 10. 144 Annual Report 2015 Of the total cost ofinvestment,Of thetotal theconsiderationtransferred for theacquisitionofPDBfollows: of CBSIandPDB, theinvestment inPDBwas reclassifi On March 31,2015, theParent Companyinfusion toPDBamountingP madeadditionalcapital As ofDecember31,2014, theParent Company’s costofinvestment inPDBconsistsof: Parent Company owns 99.85%and100.00% ofPDB’s commonandpreferred outstanding stocks, respectively. On various datesin2014, theParent Company madetenderoffers tonon-controllingstockholders ofPDB. As ofDecember 31,201 Acquisition ofPDB transferred toandabsorbed by CBSI. On December17, 2015, SEC’s CBSIobtained approval ofitsmergerwithPDB, whereby theentireassetsandliabilitiesofPDBsha and PDB. On November 6,2015, theBSPissuedCertifi 2/3 ofeach corporation’s commonstocks outstanding inseparatemeetingsheldon August 14, 2014. bank. as thesurviving The termsofthePlanMerger ofCBSIwithPDBwere approved by CBSIandPDB’s stockholders owning at The BODofbothCBSIandPDB, intheirmeetingheldonJune 26,2014, approved theproposedmergerofPDBwithCBSI,l Merger ofCBSIwithPDB and PDB. The planofmergerprovides for theissuanceof1.23 PDBcommonsharesfor everyCBSIcommonshare. As ofDecember31,2015, includedintheinvestment inCBSIarethecostofsharesreceived inconnectionwiththemerger BSP for itsfi P Cost ofinvestment includestheoriginalamountincurred by theParent Companyamountingt fromitsacquisitionofCBSIin2007 CBSI On December16, 2015, theExecutive Committee approved infusiontoCBSIamountingP thecapital Company’s interestinCBSIto98.07%asofDecember31,2015. The fi 1.07 billionandadditionalacquisitionofnon-controllinginterestin2015 ofP nalallocationofpurchase price for each majorclassofPDB’s identifi AFS fi atFVPL assets Financial banks other from Due BSP from Due offers Tender offers Tender infusion capital Additional (Forward) P P items cash other and Cash Assets stock capital ofPDB’s ofmajority Acquisition stock capital ofPDB’s ofmajority Acquisition Total Total Other assets assets 13) (Note licenses Branch 12) (Note properties Investment fi furniture, premises, Bank associates and subsidiary in Investments receivable interest Accrued andLoans receivables HTM fi nancial assets nancial assets nalapproval oftheplanmergerbetweenCBSIandPDB. xue n qimn Nt 1 1,014,822 11) (Note equipment and xtures Notes toFinancialStatements cate of Authority onthe Articles ofMergerandthePlanMerger, asamended,ofCBSI edtoinvestment inCBSI. ableassetsandliabilitiesfollow: 2.52 million. The additionalacquisitionbroughtuptheParent 1.70 billion.Inconnectionwiththemerger P P 2.00 billion,asmandatedby2.00 the 1,300,000 2,976,700 1,421,346 1,421,346 1,676,700 255,354 255,354 (As Fair restated) Value 48,841,426 34,146,744 1,656,393 2,765,003 3,577,555 3,814,778 P 494,669 289,500 354,547 387,444 221,234 52,566 66,171 of CBSI 4, the least atter ll be o 145 Annual Report 2015
s for s for pany’s pany’s , 2014 , 2014 ows: 49 ows: he year he year 347,160 172,255 B in 2014. B in 2014. 725,207 433,637 396,344 7,057,104 P 1,775,617 1,871,685 5,628,038 31,884,793 49,566,633 44,569,935 ew branches in branches ew nancial statements. nancial Fair Value restated) Fair (As 616,907 P 4,051,917 5,728,617 1,676,700 1,676,700 270,000 765,000 P P 1,785,000 2,550,000 2,280,000 P 95.62 million. In 2014, depreciation 95.62 million. In 2014, As restated As As restated As 725,207) 1.44 million as a result of the adjustments. 1.44 158.32 million, respectively. 158.32 265.49 million, respectively. nalized its purchase price allocation to consider additional information in 2015. in 2015. additional information price allocation to consider its purchase nalized 318.73 million, gross of deferred tax effects of P tax effects million, gross of deferred 318.73 nal allocation exercise and were retroactively adjusted in the 2015 fi adjusted in the 2015 retroactively and were nal allocation exercise 6.39 million are included under various operating expenses in the statements operating expenses of income. 6.39 million are included under various nal valuation report for certain items of investment properties resulting in a decrease of fair resulting in a decrease of fair properties certain report for items of investment nal valuation 2.78 billion and P able assets and liabilities acquired 215.24 million and decreased by P million and decreased by 215.24 ow ow on acquisition follows: ow Less: Fair value of identifi Net liabilities of PDB (P Cash and cash equivalents acquired from PDB* P 114 branch licenses Parent to 114 CompanyConsideration transferred P Liabilities liabilities Deposit Demand Savings Time checks Manager’s Accrued interest and other expenses Deferred tax liability (Note 26) debt Subordinated liabilities liabilities Other liabilities Total Net Bills payableBills Less: Cash paid Net cash infl * Includes cash and other cash items, due from BSP and other banks. 18 branch18 licenses CBSI to Branch licenses, net of deferred tax liability (Note 13) 1,785,000 1,059,793 Deferred tax liability management does not anticipate changes on its recommended allocation. management does not anticipate changes Goodwill from acquisition is computed as follows: to the Parent company and 18 to CBSI. This allocation will be presented to the BOD for approval this April 2016. The Parent Com Parent The April 2016. this approval allocation will be presented to the BOD for This to CBSI. and 18 company to the Parent The Parent Company’s rearrangement has approved the allocation of the 67 additional branch licenses in restricted areas as foll branch the allocation of the 67 additional has approved rearrangement Company’s Parent The expense of these items of investment properties decreased by P properties decreased by of these items of investment expense Cash fl 67 additional branch licenses in restricted areas. This is in addition to the initial investment and merger incentives of 30 n merger incentives and is in addition to the initial investment This licenses in restricted areas. 67 additional branch (SPRB) Plus Framework. Bank Rural for granted under the Strengthening Program licenses were branch These values: fair the following licenses have branch The In 2015, the MB of the BSP granted to the Group investment and merger incentives in the form of waiver of special licensing fee of waiver in the form and merger incentives Group investment the MB of the BSP granted to the In 2015, restricted areas and 35 branches to be transferred from unrestricted to restricted areas granted to the Parent Company by the M by Company to restricted areas granted to the Parent from unrestricted to be transferred restricted areas and 35 branches ended December 31, 2014 amounted to P ended December 31, 2014 Since the acquisition date, the amounts of revenue and net losses of PDB included in the consolidated statement t and net losses of PDB included of income for Since the acquisition date, the amounts of revenue December 31 ended the year and net income for revenue the Group’s at the beginning of 2014, Had the acquisition of PDB occurred would have increased by P increased by have would The following items have been considered in the fi items have following The the fi received Company the Parent In 2015, in the initial reported amount, totaling to P value acquisition-related costs amounting to P In 2014, As permitted under the standards, the Parent Company fi Company the standards, under the Parent permitted As 146 Annual Report 2015
11. 11. On April 30,2015, theBSPapproved therequestofParent Company to invest upto100.00% oruptoP The following shows table thesummarized fi nil amountasofDecember31,2015 and2014. investment inUrbanShelters(accountedfor by CBC-PCCIinitsfi Investment inassociatestheconsolidatedfi Investment in Associates As ofDecember31,2015, actual infusiontoCBCCamountedP capital as aninvestment house. On November 27, 2015, theSECapproved the Articles ofIncorporationandBy-Laws ofCBCC.ItalsograntedCBCCthelicenseto conditions. in CBCC,subjecttocertain The compositionofandmovements inthisaccountfollow: BANK PREMISES, FURNITURE, FIXTURES AND EQUIPMENT Corporation (CBCC),uptotheamountofP On April 1,2015, theBODapproved theinvestment oftheParent Company inaninvestment housesubsidiary, ChinaBank Capital CBCC (Forward) ofyear atend Balance Disposals/transfers* Additions P ofitsauthorizedthroughpurchase40.00% capital ofP On September12, 2014, theBSPapproved therequestof Parent Companyinvestment toraiseits capital inMCBLife from5.00 continue distributingitsinsuranceproductsthroughtheParent Company’s branches. The BSPrequirestheParent ownership Companyaminimumof5.00% over tomaintain MCBLife inorderfor MCBLife tobeallowed Parent Company toberepresented inMCBLife’s BODand,thus,exercise signifi This investment isaccountedfor asaninvestment inanassociateby virtue oftheBancassurance Alliance Agreement which provi China Bank Life Assurance CorporationonMarch 23,2007. The Parent CompanyinterestofMCBLife acquired5.00% on August 8,2 The life insurancecompany was incorporatedas The Pramerica Life InsuranceCompany Inc.in1998 butthenamewas changed toMa offering innovative insuranceandfi (Manulife). Undertheproposal,Parent Company willinvest inalife insurancecompany owned by Manulife, andsuch company On August theBODapproved 2,2006, thejointprojectproposalofParent Company withManufacturers Life InsuranceCompany MCB Life Balance at beginning of year atbeginning Balance Cost Commission incomeearnedby theParent Company fromitsbancassurance agreement amountingtoP transaction amountingtoP signifi In 2014, theGroupagreedtosell,transfer, andco 294.80 millionin2015, 2014 and2013, respectively, isincludedunder‘Miscellaneousincome’ of income (Note inthestatements Equity liabilities Total Benefi assets Total Revenues Net loss tax income before Loss cant investor. The salewas dulyapproved by PDB’s BODanddulyreportedtotheBSP. The Grouprecognized gainonthesale ts, claims and operating expenses operating and claims ts, 64.56 millionincludedunder‘Miscellaneousincome’ (Note20). Land nancial productsfor health,wealth andeducationthroughtheParent Company’s branches nationwide. Notes toFinancialStatements P ,8,0 P 2,882,702 ,4,2 ,0,1 ,3,3 ,3,6 08313,211,108 90,873 1,338,260 1,832,834 6,601,919 3,347,222 9,0 3,6 0649,1 4,8 1,493,982 149,883 90,212 20,614 738,969 494,304 2,8)(3,2)(0,7) 225(0,0)(290,641) (105,007) 82,255 (107,178) (130,927) (29,784) 500.00 million,subjecttotherequirements ofrelevantagencies. 500.00 regulatory nancialinformation oftheGroup’s investment inassociate: nancial statements pertain totheParent pertain Company’snancial statements investment inMCBLife andCBC-PCCI’s nvey nvey Eupet Buildings Equipment Fixtures and Furniture, 1.75 millioncommonshares. its investments inPDBProperties, Inc.andPDBInsurance Agency, Inc.toaformer ,9,7 P 5,993,877 nancial statements asaninvestment nancial statements inanassociate)which iscarried at ,1,9 P 1,919,398 300.00 million. 300.00 Consolidated cantinfl P P 20,498,841 21,439,732 5,459,395 5,370,875 940,891 Improvements Leasehold (88,520) (94,733) uenceover thelatter. 2015 2015 ,6,9 P 1,165,793 in-Progress Construction- 337.41 million,P P P 20,429,838 21,773,954 5,338,969 5,263,953 500.00 millioncommonshares 500.00 1,344,116 (95,002) (75,016) 2014 2014 597P 45,997 277.14 millionand Total 12,007,767 operate des the 20). willbe 2015 nulife % to 007. to
147 Annual Report 2015 0 2014 2015 2015 803,71 9,774,711 4,997,202 6,250,652 6,354,119 6,354,119 10,486,912 Total Total Total 88,054 P 45,997 P 45,294 P 90,873 P 388,026 P Construction- in-Progress Construction- in-Progress Construction- in-Progress 331,694 P 909,764 P 973,244 P 502,266 P 476,854 P Leasehold Improvements Leasehold Improvements Leasehold Improvements Consolidated Consolidated Parent Company Parent 564,684 P 1,111,114 P 1,081,950 P 934,905 P 1,544,283 P − − − − − 4,629 9 372.14 million. 372.14 4,62 2.20 million. 2.20 million. 1,737,737 P 5,109,524 P 5,386,709 P 1,226,420 P 1,504,265 P Furniture, and Fixtures Equipment Buildings Fixtures and Furniture, Fixtures Equipment Buildings (427,478) (101,321) 157 (103,090) (661,516) Furniture, and Fixtures Equipment Buildings (29,784) 494,304 653,246 17,443 89,898 145,850 1,400,741 2,471,835 P 2,321,830 P 2,882,702 P 2,786,350 5,612,477 1,027,236 999,819 88,054 10,513,936 2,786,350 P P P 3,347,222 P −3,987,316446,545 592,651 −5,026,512 −5,516,734 592,651 462,552668,125 −3,987,316446,545 − −(14,083) −4,386,057 479,408 (80,667) 4,911 − 30,090 (89,839) 70,563 − 580,061 Land Land −(360)(313) − −(673) −822,757 −(673) − −2,743 − Land − −619,06275,345128,350 − 4,255,780 − 222,812 835,065 5,097,654 −3602,383 −(360)(313) − 895,859 (14,551)− 663,527 − 861,406 69,529− 2,070 5,754,372− − − 6,854,919 277,790 2,070 (Note 15) (Note (Note 15) (Note cation − (4,269) 2,383 − − (1,886) cation and Amortization Losses and Amortization Losses combination (Note 10)and Amortization 409,059 166,849 360,229 64,511 14,174 1,014,822 *Includes transfers from investment properties amounting P to *Includes transfers from investment properties amounting to P from investment *Includes transfers Additions Disposals/transfers* Balance at end of year Accumulated Depreciation Balance at beginning of year amortization and Depreciation Disposals/transfers* Balance at end of year Net Book Value at End of Year P Reclassifi Balance at end of yearNet Book Value at End of Year − 360 2,383 − − 2,743 Disposals/transfers*Balance at end of yearAllowance for Impairment Balance at beginning of year− (246,269) − − 5,417 4,255,780 (10,830) − 835,065 (251,682) 663,527 − 5,754,372 Accumulated Depreciation Balance at beginning of year amortization and Depreciation Disposals/transfers* Balance at end of year Allowance for Impairment Balance at beginning of year Reclassifi Balance at end of year Net Book Value at End of Year P Additions due business to AdditionsDisposals/transfers*Balance at end of yearAccumulated Depreciation Balance at beginning of year amortization and Depreciation 2,882,702 (13,890) 5,993,877 (157,526) 15,698 − − 1,919,398 3,905,013 (7,623) 875,030 597,036 1,165,793 749,474 22,509 28,751 80,174 45,997 547,857 (407,584) 12,007,767 99,287 126,500 (557,872) 51,381 − − 1,063,905 5,202,344 Cost Balance at beginning of year *Includes transfers from investment properties amounting P to Cost Balance at beginning of year P 148 Annual Report 2015 12. respectively, for theGroupandP Balance at end ofyear atend Balance Disposals/write-off/transfers* Additions *Includes transfers tobankpremisesamountingP 5,026,512 – 547,313 4,675,465 – – 592,651 895,274 (196,266) 446,545 9,774,711 67,552 – 42,388 1,253 (521,675) 523,846 45,294 3,987,316 (385,120) 27,038 73,937 1,624 417,883 – 7,963 909,764 452,723 5,843 (199,143) 3,733,736 1,111,114 (220) – – – 773,106 5,386,709 Year (144,298) of – End at Value Book Net 2,321,830 ofyear at end Balance Disposals/transfers* – Depreciation and amortization of year atbeginning Balance Depreciation Accumulated ofyear atend Balance Disposals/transfers* Additions Balance at beginning ofyear atbeginning Balance Cost The compositionofandmovements inthisaccountfollow: INVESTMENT PROPERTIES ofincomeunder‘Depreciationandamortization’are includedinthestatements account. Gain onsaleoffurniture, fi P of year atbeginning Balance Cost *Includestransfers frominvestment propertiesamountingtoP In 2013, depreciationandamortizationamountingtoP ofincomeunder‘Miscellaneousincome’are includedinthestatements account(Note20). to P As ofDecember31,2015 and2014, amountoffullydepreciatedfurniture, fi thegrosscarrying increment amountingtoP previous accountingmethod(revaluation 1,2005. Accordingly, method)asthedeemedcostofassetJanuary revaluatio value ofthelanddeterminedunderit andconsideredthecarrying The 1,2004 GroupadoptedthedeemedcostmodelasofJanuary Balance at beginning ofyear atbeginning Balance Losses Impairment for Allowance ofyear atend Balance Disposals/write-off/transfers* Depreciation and amortization ofyear atbeginning Balance Depreciati Accumulated e okVlea n fYa P Year of End at Value Book Net ofyear atend Balance Disposals/write-off/reclassifi year the during Provisions and Amortization 2.36 billionandP 2.00 billion,respectively,2.00 for theGroupandP 1.28 billionwas closedtosurplus(Note22)in2011. on and Amortization xtures andequipmentamountingtoP cation* 0.50 million,P Notes toFinancialStatements Land (Note 15) P ,2,3 P 2,321,830 ,2,3 P 2,321,830 1.49 millionandP Eupet Buildings Equipment Fixtures Furniture, and 2.20 million. 645.53 millionandP ,9,9 P 1,399,393 ,5,0 P 4,757,901 372.14 million. 0.36 millionin2015, 2014 and2013, respectively, for theParent Company 1.99 billionandP 0.89 million,P 506.03 millionfor theGroupandParent Company, respectively, ,0,9 P 1,105,491 Land –713,023713,023 –(81,353) –142,277142,277 –652,099652,099 (81,353) –6,6336,633 6,6 P 664,569 Parent Company 1.52 millionandP 1.75 billion,respectively, for theParent Company. P ,9,3 5,7 1,343,304 251,070 1,092,234 ,8,9 P 3,786,291 ,2,3 6,7 1,287,811 263,974 1,023,837 ,7,6 P 5,077,262 ,1,2 ,8,4 7,398,973 2,588,845 4,810,128 8581 1041 (1,006,292) (150,491) (855,801) Improvements Leasehold 8,6 7,6 960,332 371,665 588,667 6,9)621(62,126) 6,271 (68,397) xtures andequipmentstillinuseamounted 2,6 P 827,864 1,1 P 317,113 Improvements Buildings Consolidated and 0.36 millionin2015, 2014 and2013, in-Progress Construction- ,6,7 P 2,367,671 ,1,4 P 1,611,848 8,2 P 388,026 524P 45,294 Total Total 7,444,933 5,398,139 4,748,199 9,401,112 2015 2014 n s 149 Annual Report 2015 2014 2014 2015 4,147,977 1,901,363 4,516,500 3,704,289 1,899,862 5,449,530 Total Total Total 80,325) (80,325) ( 728,117 P 591,323 P 1,241,342 P 1,130,536 P 1,382,401 P 1,464,502 P Parent Company Parent Parent Company Parent Buildings and Buildings Improvements Buildings and Consolidated Buildings Improvements and Buildings Improvements –588,689588,689 (7,119) (700) (7,819) 57,868 440,387 498,255 721,705 763,377 1,485,082 134,311 123,540 257,851 279,725) 14,076 (265,649) 1,171,745 P 2,176,474 1,520,017 3,696,491 3,017,441 P 1,011,848 202,389 1,214,237 3,275,158 P 1,310,040 P 1,004,729 201,689 1,206,418 2,321,888 P 3,985,028 P P P P Land Land Land Land −588,689588,689 − – 81,847 81,847 −590,211590,211 372.14 million. 372.14 372.14 million. 372.14 2.20 million. (Note 15) (Note (Note 15) (Note (Note 15) (Note cation* (159,404) 6,300 (153,104) on and Amortization and on on and Amortization and on on and Amortization and on cation (218,862) – (218,862) cation *Includes transfers to bank premises amounting to P *Includes transfers Cost Balance at beginning of year P Cost Balance at beginning of year Cost Balance beginning at of year P Additions Disposals/write-off/transfers* ( Balance at beginning of year amortization and Depreciation Disposals/write-off/transfers*Balance at end of year – – – 636,785 83,264 (131,360) 636,785 (131,360) 83,264 Additions Disposals/write-off/transfers*Balance at end of yearAccumulated Depreciati Allowance for Impairment Losses Balance at beginning of yearReclassifi Balance at end of yearNet Book Value at End of Year (753,421) 2,321,888 (188,522) 1,382,401 (941,943) 1,230,710 3,704,289 1,011,848 202,389 1,433,099 202,389 1,214,237 *Includes transfers to bank premises amounting to P *Includes transfers *Includes transfers to bank premises amounting to P *Includes transfers Balance beginning at of year amortization and Depreciation Disposals/write-off/transfers*Balance at end of yearAllowance for Impairment Losses − (131,598) − − (131,598) 665,643 118,054 − 665,643 118,054 652,099 652,099 Additions due business to combination (Note 10)Additions Disposals/write-off/transfers*Balance at end of yearAccumulated Depreciati Balance at beginning of yearProvisions during the yearDisposals/write-off/reclassifi Balance at end of year 2,147,951Net Book Value at End of Year 617,052 2,765,003 (1,067,552) (254,100) 5,077,262 (1,321,652) 2,367,671 1,233,158 7,444,933 18,480 207,169 1,092,234 37,601 1,440,327 251,070 56,081 1,343,304 Balance at beginning of year Balance at end of year Accumulated Depreciati amortization and Depreciation Disposals/write-off/transfers* Balance at end of year Allowance for Impairment Losses Balance at beginning of year Reclassifi Balance at end of year Net Book Value at End of Year P 150 Annual Report 2015 13. As ofDecember31,2015 and2014, fair values ofinvestment propertiesamountedto P (Note 20). income’ in the statements of ‘Miscellaneous from under Rent out income investment is leasing earned included income properties customer baseduetothebranches acquired.Noneofthegoodwillrecognized isexpected purpos tobedeductiblefor income tax The Groupattributed thegoodwillarisingfrom itsacquisitionofCBSIandPDBtofactors such asincreaseingeographical pres In 2013, depreciationandamortizationamountingtoP Group ontheeffectivity dateofacquisitionastheseproperties were measuredatfair value onacquisitiondate(Note10). national andlocaltaxesinrelationtothisregisteredactivity. and relatedoperationsinaccordancewithexisting PEZArules. The Parent Company shallalsobeexempted fromthepayment ofa Under thisregistration,theParent Company isentitledtofi Chinabank CorporateCenter. This registrationisunderPEZARegistration Certifi Barangays andKamputhaw, Mabolo,Luz,Hipodromo,Carreta, CebuCity, for leasetoPEZA-registered IT enterprises,andtobekno the PhilippineEconomicZone aproposed17-storeyAuthority (PEZA)to operate andmaintain buildinglocatedinsidetheCBP-IT P On August 26,2011, theParent Company was registeredasanEconomicZoneInformation Technology (IT) Facilities Enterprisewit Branch Bank, andPDB. licensesarosefromtheacquisitionsofCBSI,Unity Branch Licenses by theGroup. Goodwill representstheexcess of theacquisitioncostsover thefair value oftheidentifi Goodwill INTANGIBLE GOODWILL AND ASSETS The separatevaluation allowance ofacquiredinvestment propertiesfromPDBamountingtoP foreclosure anddaciontransactions’ ofincome. inthestatements between thefair value oftheinvestment value uponforeclosure oftheloanisrecognized property andthecarrying under‘Gain The Group’s investment propertiesacquiredinsettlement propertiesconsistentirelyofrealestate ofloansandreceivables. Group andP incomeearned and directoperatingexpenses incurred ofrental oninvestmentDetails propertiesfollow: ofincomeunder‘Depreciationandamortization’are includedinthestatements account. Total 10) (Note acquisition PDB from license Branch Branch license from CBSI acquisition CBSI from license Branch Branch license from Unity Bank acquisition Bank Unity from license Branch generating not properties investment on expenses operating Direct rent generating properties investment on expenses operating Direct Direct operating expenses on investment properties not generating generating not properties investment on expenses operating Direct rent generating properties investment on expenses operating Direct Rent income on investment properties investment on income Rent Rent income on investment properties investment on income Rent rent income rent income rent income rent income 5.64 billionandP 5.73 billion,respectively, for theParent Company. Notes toFinancialStatements 107.36 millionandP ve fi percent(5.00%) 89.72 millionfor theGroupandParent Company, respectively, nal tax ongrossincomeearnedfromlocatorITnal tax enterprises cateNo.11-03-F. P 52,429 35,270 9.52 billionandP P able assetsandliabilitiesofcompaniesacquired 31,100 2,392 1,069 7,020 2015 2015 199.15 millionwas notrecognized by the Consolidated Parent Company P 2,839,500 3,664,500 P 347,400 477,600 9.84 billion,respectively, for the 2015 P P 30071,791 43,010 1816,734 21,801 917P 29,167 11174,096 61,121 ,0 P 5,903 ,7 6,734 4,174 042013 2014 042013 2014 The difference P 2,839,500 3,677,100 P 360,000 477,600 ence and onasset 13,393 8,834 2014 es. wn as ark in h ll 151 Annual Report 2015 ows ows as of above 2014 based nancial 78,412 35,552 65,952 141,196 177,671 378,170 115,288 926,671 635,093 (641,658) P 1,727,382 Cash fl 2,424,419 4,281,387 3,639,729 1,856,968 P P nal withholding nal – 322.19 million and 322.19 2015 46,720 49,983 127,195 207,631 115,025 122,019 785,818 130,925 283,282 (626,103) P 3,319,867 4,575,533 2,706,935 1,255,666 3,949,430 ow projections from fi ow P P – 2014 56,156 119,176 181,181 144,150 432,217 170,539 926,671 657,434 188,933 (706,182) P 1,267,563 2,273,701 2,537,642 4,407,961 6,681,662 5,975,480 P P 2015 Consolidated Company Parent 51,113 177,863 635,155 122,019 188,574 785,818 264,745 129,067 142,345 (741,589) P 3,197,971 cates (PEACe) bonds on October 18, 2011. bonds on October 18, cates (PEACe) 1,022,116 5,975,197 6,716,786 4,977,261 1,739,525 P P ed as the CGU for impairment testing of the goodwill. The BBG has BBG The testing of the goodwill. impairment for ed as the CGU ve-year period, which do not include restructuring activities that the Group is not yet Group is not yet activities that the do not include restructuring period, which ve-year ows beyond the budget period beyond ows Revenue (BIR) and withheld by the Bureau of Treasury (BTr) from the proceeds collected by from the proceeds collected by (BTr) Treasury the Bureau of (BIR) and withheld by Revenue cant future investments that will enhance the asset base of the CGU being tested. The discount rate applied to cash The being tested. will enhance the asset base of the CGU that investments cant future ed as the CGU for impairment testing of the branch licenses. testing of the branch impairment for ed as the CGU ation rates ve-year period are extrapolated using a steady growth rate of 1.00% in 2015 and 2014, which does not exceed the long-term exceed does not which and 2014, in 2015 rate of 1.00% growth using a steady period are extrapolated ve-year nancial assets nancial 14.38 million, respectively. ow projections is 8.84% in 2015 and 9.87% in 2014 for the goodwill and branch licenses arising from the acquisition of CBSI. licenses arising from the goodwill and branch for and 9.87% in 2014 is 8.84% in 2015 projections ow SCR RCOCI Others Prepaid expenses Prepaid Creditable withholding taxes on the fair value less cost to sell calculations, using estimated cost to sell of 3.50%, net of DTA. less cost to sell calculations, using estimated value on the fair assumptions: to the following of the CGU is most sensitive the value-in-use calculation of The margin rates • Interest • Discount • infl • share during the budget period Market • Local cash fl rate used to extrapolate Steady growth of the in any change that no reasonably possible management believes of the CGU, Withregard to the assessment of value-in-use amount its recoverable licenses to materially exceed cause the carrying of the goodwill and branch assumptions would value key beyond the fi the beyond the industry. rate for growth average acquisition has been determined licenses from Unity Bank testing of the branch impairment amount of the CGU for recoverable The and 2014. December 31, 2015 costs Capitalized software As of December 2015, the cost 31, and accumulated amortization capitalized of software costs amounted P to P fl ASSETS OTHER account consists of: This committed to or signifi committed budgets approved by senior management covering a fi senior management covering by budgets approved The Parent Company’s Branch Banking Group (BBG) has been identifi Group (BBG) Banking Branch Company’s Parent The also been identifi using cash fl calculation based on a value-in-use amount of the CGU has been determined recoverable The Accounts represents fi accounts receivable the Group’s of about 49.69% and 68.60%, respectively, and 2014, of December 31, 2015 As Internal the Bureau of taxes (FWT) imposed by Certifi Alleviation Eradication and of the Poverty the Group upon maturity Financial assetsFinancial receivable Accounts Nonfi Net plan assets (Note 23) Security deposit Security stamps Documentary Sundry debits Miscellaneous Allowance for impairment and credit losses (Note 15) 14. 14. 152 Annual Report 2015 any oftheParent Company’s ATM terminals. receivables oftheParent Company fromautomatedtellermachine (ATM) transactionsofclientsotherbanksthattransactedth Accounts receivable alsoincludesnon-interestbearingadvances tooffi the Parent Company, withitslegalcounsel,hasdeterminedthatthesaidaccountsreceivable inconsultation iscollectible. including thepresentvalue oftheexpected future cashfl inNote2,theParentAs discussedinmoredetail Company considersseveral factors indeterminingwhetherafi issue itsfi by theSC,publicfi rnfr/tes(475 ,0 5,4)(140,666) (50,044) 85,212 4,103 645 (94,725) P 7,925 76,642 ofyear atend Balance Transfers/others 15) (Note year the during Provisions Balance at end ofyear atend Balance Transfers/others 15) (Note year the during (recoveries) Provisions aac tbgnigo erP ofyear atbeginning Balance Balance at beginning ofyear atbeginning Balance rnfr/tes(976 ,4 4,5)(100,625) (44,958) (766) 4,049 (804) (59,716) P – 38 ofyear atend Balance Transfers/others 15) (Note year the during (recoveries) Provisions The following presentthe tables andsupplies,inter-offiMiscellaneous consistsmainlyofunissuedstationery Miscellaneous Marchtax. On 13, 2015, therespondentsfi 13,On January 2015, theSCorderedBTr toreleasetheinvestor fi bankstheamountcorresponding tothe20.00% of thePhilippines. the government FWTfromtheproceedsofPEACe withheldthe20.00% bondsandhelditinanescrow accountwiththeLandBank ordered thesebankstoplaceinescrow anamountequivalentuntilfi tothedisputedwithholdingtax FWTonPEACe20.00% bonds. restrainingorderin The SupremeCourt(SC)issuedatemporary On October17, 2011, theParent Company togetherwithseven otherbanksfi Balance at end ofyear atend Balance Transfers/others 15) (Note year the during (recoveries) Provisions aac tbgnigo erP ofyear atbeginning Balance Balance at beginning ofyear atbeginning Balance naldecisiononthematter. led aconsolidatedcommentonthemotionsfi reconciliation ofthemovement oftheallowance for impairmentandcreditlossesonotherassets: Notes toFinancialStatements led amotionfor reconsiderationandclarifi Rcial C SCR Miscellaneous Receivable Accounts Rcial SCR Receivable Accounts Rcial C SCR Miscellaneous Receivable Accounts Rcial C SCR Miscellaneous Receivable Accounts ows discountedattheasset’s originalEIR. As ofDecember31,2015 and2014, P P P P 4,4 P 444,444 5,5 P 459,950 5,5 P 459,950 3,9 P 531,499 1,2 P 519,628 2,0 P 521,705 1,1 P 513,416 1,1 P 513,416 1,7) 15 (15,197) (125) – (15,072) 6341,0 ,1 39,900 3,813 19,703 16,384 805 6 ,4 (4,493) 2,742 860 (8,095) 44 –7 (358) 76 – (434) led by the respondents. As ofDecember31,2015, led by therespondents. As SChasyet to cers andemployees, withtermsrangingfrom1to30days and cefl led ajointpetitionagainsttheBIR’s decisiontoimpose oatitems,anddepositsfor various services. cation. Pursuant toaresolutiondated April 21,2015 424P 34,224 424P 34,224 477P 54,787 216P 22,196 25,809 P 25,809 589P P 25,809 25,809 Parent Company 170P 21,760 Consolidated Parent Company Consolidated Miscellaneous favor ofthesebanksonthesameday and nal decisionisrendered.H 5,9 P 155,899 5,5 P 155,850 5,4 P 158,542 5,4 P 158,542 5,9 P 155,899 6,9 P 165,097 0,6 P 201,661 0,4 P 207,941 nancialassetisimpaired, Total Total Total Total nal withholding nal 761,636 706,182 706,182 741,589 743,049 641,658 641,658 626,103 2015 2014 owever, 2015 2014 rough
153 Annual Report 2015 2014 97,974 79,077 69,331 69,331 79,077 79,077 79,077 6,323 6,323 97,429 78,532 641,658 100,920 743,049 (431,042) (531,962) 1,214,237 8,165,838 6,316,980 1,433,099 6,225,088 8,596,880 P P Accrued Interest Receivable Accrued Interest Receivable – – 38,742 P 38,742 38,742 P 38,742 P 38,74238,742 P 38,742 P P 39,615 P cient allowance to cover to cover cient allowance 2015 6,323 6,323 78,532 AFS Financial AFS Assets Unquoted Unquoted Equity Securities AFS Financial AFS Assets Unquoted Unquoted Equity Securities 68,342 626,103 641,658 487,485 (594,351) (106,866) 6,151,786 8,165,838 1,206,418 1,214,237 8,058,972 6,225,088 P P nancial assets and accrued interest nancial assets and accrued 6,734,550 P 6,994,670 P 6,994,670 P 6,734,550 P 6,734,550 P 6,633,080 P – – 99 P 99 P 9999 3,699,182 P P 2014 182 P 2,743 4,629 97,974 38,742 39,615 79,077 2,099 P 2,099 P (72,663) 706,182 761,636 440,901 (513,564) 8,977,261 1,440,327 6,734,550 1,343,304 6,633,080 8,904,598 2015 2014 P P Consolidated Consolidated 708,387 P 390,326 P 390,326 P 579,650 P 708,387708,387 P P 735,545 P 2015 2,743 2,070 38,742 38,742 79,077 69,331 741,589 706,182 229,615 966,574 (736,959) 1,287,811 9,134,213 Trade-related Lending Others Total Trade-related Lending Others Total 6,734,550 6,994,670 1,343,304 8,904,598 P P Loans and Receivables and Loans Loans and Receivables 959,999 P 719,544 P 633,035 P 959,999 P 959,999 P Consolidated Parent Company Consolidated Parent 1,313,023 P 1,313,023 P Consumer Lending Consumer Lending 318,146 593,478 6,874 2,085 920,583 59 (601) 5,066,065 P 5,289,222 P 5,289,222 P 2,082,4993,206,723 837,178 475,845 261,589 128,737 2,085 14 3,813,390 3,181,280 –– 38,742 69,331 5,177,809 P 5,066,065 P 5,066,065 P 2,486,398 P P P P P Corporate and Corporate Commercial Lending (94,989) (240,454) (324,935) (85) (660,463) (59) (9,145) and Corporate Commercial Lending xtures and equipment xtures and equipment nancial assets nancial nancial assets (Note 8) (Note 11) (Note Bank premises, furniture, fi reconciliation of the allowance for credit losses on loans and receivables from customers, AFS fi from customers, credit losses on loans and receivables for reconciliation of the allowance Investment properties Investment fi Accrued interest receivable AFS Other assets Other ALLOWANCE FOR IMPAIRMENT AND CREDIT LOSSES FOR IMPAIRMENT ALLOWANCE as follows: and credit losses are impairment for the allowance Changes in Balances at beginning of year receivables Loans and Provisions (recoveries) during the year (recoveries) Provisions Transfers/others at end of year Balance Individual impairment impairment Collective Provisions (recoveries) during the yearTransfers/othersBalance at end of year 133,070 170,117 P (3,251) (244,814) (290) 70,338 299,646 (23,907) 207 – (198,176) (38) (873) (18,859) Collective impairment impairmentIndividual Collective 2,579,667 326,964 P 128,737– 3,035,368 – – At the current level of allowance for impairment and credit losses, management believes that the Group has suffi and credit losses, management believes impairment for of allowance level At the current and other risk assets. from the non-collection or non-realization of its loans and receivables be incurred losses that may any A follows: receivable Provisions charged operations to Accounts charged off and others Balances at end of year Loans and receivables (Note 9) Investment properties (Note 12) Accrued interest receivable Other assets (Note 14) AFS fi AFS Bank premises, furniture, fi Balance at beginning of year Balance Balance at beginning of year P 15. 15. 154 Annual Report 2015 17. 16.
aac tbgnigo erP ofyear beginning at Balance Balance at beginning ofyear beginning at Balance Interbank payable loans The Group’s andtheParent Company’s billspayable consistof: Bills Payable BILLS PAYABLE AND SUBORDINATED DEBT As ofDecember31,2015 and2014, duefromBSPamountingtoP compliance withsuch regulation. againstdepositliabilitiesto19.00%.increasing therequiredreserves As ofDecember31,2015 and2014, theParent Company i compliance, andreductionintheunifi remuneration oftheunifi On March 29,2012, BSP Circular No.753was issuedproviding unifi from 0.13% to8.25%in2013. interest repricing. The remainingdeposit liabilitiesbearannualfi As ofDecember31,2015 and2014, 40.66%and43.80%respectively, depositliabilitiesoftheGrouparesubjectto ofthetotal DEPOSITLIABILITIES Collective impairment Individual impairment ofyear end at Balance Transfers/others year the during (recoveries) Provisions Government lending programs lending Government for depositliabilitiesperlatestreportsubmitted by theParent Company totheBSP. olciei pimn ,6,5 5,7 2,3 –29844 – – 2,948,464 – 128,737 P 253,170 2,566,557 Collective Individual impairment impairment rvsos(eoeis uigteya 0,7 321 –1174 –(38) (18,859) – (193,616) – (168) 101,724 (23,907) – 54,118 (3,251) (223,659) P – 104,975 ofyear end at Balance Transfers/others year the during (recoveries) Provisions ed reserve requirement,exclusioned reserve ofcashinvault anddemanddepositsaseligibleformsrequirement ofreserve Notes toFinancialStatements Lending Commercial Corporate and Lending Commercial and Corporate requirementratios.In2014,ed reserve theBSPissuedCircularNo.830effective April 11, 2014 P P P P P 4,842,834 P 4,842,834 ,5,3 P 5,053,830 P 5,053,830 ,4,3 P 4,842,834 P 4,842,834 ,7,7 P 2,276,277 ,5,3 P 1,856,131 3,197,699 267,222 128,737 3,593,658 – – – ,6,1 P 4,961,518 8,1 2000684 –4887 –(1,044) – 488,887 – 6,874 200,000 282,013 7,1)(6,3)(2,3) 5219 –(9,146) – (562,189) – (324,935) (166,237) (71,017) Lending Consumer Lending Consumer 440,394 P 440,394 673,853 P 673,853 7,5 P 673,853 P 673,853 2,8 P 420,683 707,616 P 707,616 P 1,3 P 619,735 Loans and Receivables P P Loans and Receivables 18,422,442 19,085,180 Lnig Ohr Total Others Lending Trade-related Lnig Ohr Total Others Lending Trade-related xed interestratesrangingfrom0.13% to2.75%in2015 and2014, and 662,738 61.43 billionandP osldtdParent Company Consolidated 2015 9,2 P 390,326 9,2 P 390,326 708,387 P 708,387 6,8 P 261,589 3,4 P 735,545 0,8 P P 708,387 708,387 7,5 P 579,650 requirement,non- reserve andliquidity cation ofthestatutory Parent Company Parent Parent Company P P 6,320,580 5,165,440 1,155,140 52.35 billion,respectively, were setasideasreserves 2015 2014 2014 8 P 182 14 P 14 P 14 14 P 14 14 P 14 4P 14 P 14 P 14 6,225,088 P 6,225,088 ,2,8 P 6,225,088 P 6,225,088 2,558,128 P 2,558,128 ,1,8 P 6,316,980 ,7,2 P 3,276,624 ,5,8 P 6,151,786 ,5,8 P 6,151,786 P P 18,422,442 18,422,650 2015 Securities Equity Unquoted Securities Equity Unquoted Assets Financial AFS 208 AFS Financial Assets 6,323 P 6,323 P 6,323 P 6,323 6,323 P 6,323 ,2 P 6,323 ,2 P P 6,323 P 6,323 6,323 P P 5,165,440 Receivable Interest Accrued Receivable Interest Accrued 5,177,601 12,161 2014 periodic 68,342 68,342 68,342 78,532 78,532 78,532 78,532 78,532 97,429 s in 155 Annual Report 2015 ed 657 − − ed on g was g was 2014 2014 P ark bid nancial existing existing 12,161 11,504 13,004 40,790 emed by emed by 2014 qualifi P 746,143 355,203 collateral collateral anks. The The anks. P 1,155,140 P Lower Tier Lower 2 894,400 ion once the 5,165,440 2,035,040 2,236,000 y the borrower the percentage P P − − 208 208 − − 2015 2015 P P nancial covenant such that such nancial covenant 23,914 2015 178,056 460,768 662,738 P P 0.21 million, respectively, as of of as respectively, million, 0.21 2,040,177 4,310,207 4,702,695 11,053,079 P P nancial assets pledged by the Parent the Parent nancial assets pledged by Consolidated 338.10 million, respectively, are deposited with million, respectively, 338.10 Parent Company Parent nancial assets pledged as collateral amounted to nancial assets pledged nancial assets pledged by the Parent Company as Company the Parent by nancial assets pledged 760.38 million and P 4.72 billion, respectively. The fair value of HTM fi of HTM value fair The 4.72 billion, respectively. 7.37 billion respectively, as of December 31, 2015. as of December billion respectively, 7.37 Lower Tier 2 Notes (the Notes). The Upper Tier 2 Notes bears Upper The Tier 2 Notes (the Notes). Lower 561.21 million and P 561.21 8.09 billion and P 7.05 billion and P 7.05 4.66 billion. The fair value of HTM fi of HTM value fair The 4.66 billion. 14.45 million as of December 2014, respectively, 31, are pledged as collateral for the 8.66 billion as of December 31, 2015 (Note 8). 31, 2015 8.66 billion as of December 1.30 billion and P Lower Tier 2 Notes bears interest rate at 8.75% per annum payable semi-annually in arrears. Unless the in arrears. semi-annually Tier 2 Notes bears interest rate at 8.75% per annum payable Lower 5.33 billion as of December 31, 2014 (Note 8). 5.33 billion as of December 31, 2014 assets pledged as collateral amounted to P assets pledged as collateral Counterparty Average term Rates P before it matures, the equivalent discount value shall be paid by the Group the to rediscounting institution before the pledged rediscounted loan has been fully paid upon maturity. In case a particular loan account pledged ascan collateral be released. is paid in full b Subordinated Debt Tier 2 Notes and consists of Upper debt in 2014 subordinated Group’s The rede that the Notes are not previously in 2020 provided semi-annually and will mature per annum payable interest rate at 10.25% The PDB in 2015. rediscounting facilities (Note 9). Loans and receivables pledged as collateral shall be released by the rediscounting institut Development Bank of the PhilippinesLoans and receivables the of Group and the Parent Company amounting P to 6 years 4.00% 6.50% to Government lending account consists of: This programs As of December 31, 2015, the carrying amount of foreign currency-denominated HTM and AFS fi and HTM carrying the currency-denominated amount of foreign of December 31, 2015, As amounted to P its interbank borrowings for as collateral Company Development Bank of the Philippines 8 years 4.00% 8.25% to Social Security ServicesSmall Business Guaranty and Finance Corporation 4 years 5.00% 6.50% to 6 years 2.50% 5.25% to Hongkong Bank Hongkong Bank Hongkong ING Bank AmsterdamBarclays Bank London months 11 2 years 6 months 1.22% 1.40% 1.18% December and 2015 P 31, As of December 31, 2015 and 2014, margin deposits amounting to P margin deposits and 2014, of December 31, 2015 As CounterpartyWells Fargo Miami Average term Rates 30days 0.92% Interbank loans payable Interbank loans from the following: Company Parent of the Group and the borrowings dollar-denominated consists of the account This Citibank N.A. Manila years 1.5 1.32% Counterparty Average term Rates As of December 31, 2014, the carrying amount of foreign currency-denominated HTM fi HTM carrying the currency-denominated amount of foreign of December 31, 2014, As collateral for its interbank borrowings amounted to P its interbank borrowings collateral for Land Bank of the Philippines years 10 3.50% 8.66% to various counterparties to meet the collateral requirements for its interbank bills payable. counterparties to meet the collateral requirements for various facility from regional and international b term loan unsecured, three-year million a US$158.00 includes Interbank loans payable facility carries an interest margin of 1.40% per annum over 3-month LIBOR. The term of the loan provides for a fi for term of the loan provides The 3-month LIBOR. per annum over margin of 1.40% an interest facility carries shall ensure that its minimum capitaladequacy ratio (CAR) will, at all times, be equal to or greater of (a) Company the Parent borrowin The Otherwise, the loan shall become immediately due and payable. BSP from time to time and (b) 10.00%. prescribed by measured initially at fair value and carried at amortized cost of P at amortized carried and value measured initially at fair Land Bank of the Philippines years 5 5.13% regulations applicable to universal and commercial banks, including their subsidiary and regulations applicable to universal banks, the Notes of PDB shall no longer be grant was from the BSP to redeem the Notes, which as tier 2 capital in the computation this, PDB sought approval of CAR. Given 2014. September 18, fully redeemed in 2015. Notes were The Notes are previously redeemed, the interest rate from the issuances will be reset at the equivalent of the 5-year PDST-F Benchm PDST-F of the 5-year rate from the issuances will be reset at the equivalent redeemed, the interest Notes are previously starting in arrears semi-annually 2015. shall be payable yield plus 5.62% which on Based became a subsidiary of the former. and the latter PDB, obtained Company control over the Parent 2014, On January 15, 156 Annual Report 2015 20. 19. 19. 18. Margin deposits Accounts payable Financial liabilities benefi employee for payable Accrued Retirement liabilities (Note 23) (Note liabilities Retirement payable taxes Withholding Nonfi Miscellaneous Treasurer to Philippines the ofthe Due Other credits-dormant to PDIC Due Acceptances payable payable lease Accrued payable interest Accrued Miscellaneous mainly includes sundry credits, inter-offiMiscellaneous mainlyincludessundry advance. Accounts payable includespayablesproviders, andloanpayments tosuppliersandservice othercharges received fromcustom Fees and commissions and Fees ofthisaccountareasfollows:Details Charges,Fees andCommissions Service OTHER OPERATING INCOME AND MISCELLANEOUSEXPENSES This accountconsistsof: OTHER LIABILITIES This accountconsistsof: ACCRUED INTEREST AND OTHER EXPENSES Service and collection charges collection and Service Accrued taxes and other licenses other and taxes Accrued Accrued other expenses payable expenses other Accrued Others Remittances Loans Deposits nancial liabilities Notes toFinancialStatements ts P 1,834,318 P 248,615 169,744 170,070 628,191 617,698 2015 cefl osldtdParent Company Consolidated oatitems,anddormantdepositaccounts. P ,6,0 P 1,561,807 P 9,3 367,849 495,032 5,9 P 659,597 3,3 63,322 132,939 7,5 134,435 176,556 P P 76385,300 97,683 P 1,584,274 1,584,274 4,404,342 P 4,706,121 2,107,169 042013 2014 725,273 345,805 164,256 286,151 218,635 384,114 301,779 111,078 137,523 636,121 997,418 77,658 95,838 osldtdParent Company Consolidated Parent Company Consolidated 3,356 2015 2015 1,156,460 505,554 P P P 3,635,809 1,560,046 1,630,748 3,228,576 P 868,629 392,365 334,449 334,337 161,445 780,376 305,773 147,395 407,233 101,460 191,978 60,914 24,629 2,761 2014 2014 P 1,456,140 P 572,448 248,615 510,273 34,785 90,019 2015 P P P 1,260,995 3,445,764 1,261,933 3,337,858 P 293,213 345,805 107,237 724,134 214,220 419,288 P 107,906 107,906 997,418 62,223 62,223 95,838 74,188 ,2,4 P 1,220,649 P 3,356 2015 2015 3,3 63,322 132,939 7,7 374,542 376,378 1,3 P 610,332 02745,161 70,257 07335,839 30,743 042013 2014 – P P 1,004,074 1,312,475 P 2,182,919 P 2,115,169 485,210 334,449 248,738 334,337 975,543 810,316 147,395 191,978 251,472 60,914 24,629 45,112 67,750 67,750 2,761 2014 2014 ers in – 157 Annual Report 2015 yzed yzed g date: 93,904) 294,797 680,378 206,865 1,614,808 1,082,833 10,734,059 –P 2014 2013 2014 2013 2014 2013 3,065 (81,352) 17,698 15,436 13,970 12,021 45,421) (P 61,452 114,608 16,784 18,354 19,385 14,479 48,792 104,614 79,256 293 28,642 28,693 25,959 61,273 86,067 36,425 30,836 18,842 (40,401) 73,750 267,122 215,396 277,138 P 311,073 486,382 725,313 P 541,653 1,716,314 236,261 P 222,806 101,954 458,896 P 2014 (P P P 1,017,928 P P P P −32,779 Over Twelve Months Total 2015 2015 2015 7,943 (1,425) 11,591 20,714 39,516 14,861 21,338 56,621 22,768 22,970 48,087) 48,087) 26,486 181,216 151,577 241,307 337,407 800,742 891,953 280,973 255,407 629,642 459,996 570,908 37,944,686 38,515,594 223,600 – 223,600 (120,134) (P P P P P P 4,085,411 4,355,288 8,440,699 3,140,398 1,267,563 4,407,961 2,316,058 – 2,316,058 1,008,033 11,101,311 12,109,344 17,552,823 – 17,552,823 67,451,648 – 67,451,648 10,734,059 P 142,905,974 154,744,724 297,650,698 249,988,912 209,413,572 459,402,484 P − Within Twelve Months Consolidated 93,905) 294,797 689,739 208,503 1,085,975 1,904,885 11,377,101 –P 2014 2013 2014 2013 2014 2013 3,065 (81,352) 23,143 18,354 20,017 14,479 52,215 61,273 56,183 28,693 19,228 15,436 93,797 293 48,792 104,614 18,405 12,021 28,505 (P 86,067 36,425 30,836 18,842 (40,401) 73,750 277,138 P 311,073 486,382 326,718 P 750,228 105,096 149,996 119,596 346,027 218,131 535,263 P 544,094 2,006,392 P 2015 P P 1,021,799 P P 1,588,064 P P P Consolidated Company Parent Consolidated Company Parent Consolidated Company Parent −32,779 Twelve Over Twelve Months Total 2015 2015 2015 (1,425) 17,012 51,731 23,139 20,714 15,620 14,337 56,621 22,970 50,330) 25,534 198,179 181,216 337,521 267,969 100,947 371,949 638,723 263,330 466,834 966,855 (120,134) (P P P P P 3,955,145 1,022,116 4,977,261 3,156,256 3,088,337 6,244,593 8,596,143 7,540,004 16,136,147 1,001,934 1,370,480 47,497,495 48,867,975 2,691,068 – 2,691,068 11,377,101 P 86,318,501 – 86,318,501 P 21,243,492 – 21,243,492 P 155,520,631 161,514,151 317,034,782 294,228,817 220,662,103 514,890,920 – – – − Twelve Within Twelve Months nancial assets assets nancial nancial assets - gross nancial assets nancial Derivative assets (Note 24) Information technology Information The following tables present both the Group’s and Parent Company’s assets and liabilities as of December 31, 2015 and 2014 anal and 2014 31, 2015 assets and liabilities as of December Company’s and Parent tables present both the Group’s following The MATURITY ANALYSIS AND ASSETS OF LIABILITIES ANALYSIS MATURITY according to when they are expected to be recovered or settled within one year and beyond one year from the respective reportin the respective from one year and beyond within one year or settled to be recovered are expected according to when they Due from BSP Due from other banks loans receivables Interbank Financial assets at FVPL fi AFS fi HTM Loans and receivables - gross Accrued interest receivable - gross Other assets - gross (Forward) Litigations Bancassurance (Note 10) (Note Bancassurance charges Service Freight fee processing and Clearing Broker’s fee Broker’s Membership fees and dues expense Miscellaneous Miscellaneous Expenses Details of this account are as follows: Financial assets at FVPL: 8) (Note Held-for-trading Recovery of charged off assets fee Participation Miscellaneous income and 12) (Notes 11 10, Financial assets designated at FVPL (Note 8) Miscellaneous Income Details follows: of this account are as Rental safety deposit boxes fees Late AFS fi AFS Dividends (Note 8) fees transfer Fund Rental on bank premises Trading and Securities Gain - Net and Securities Trading consists of: account This Financial assetsFinancial Cash and other cash items 21. 21. 158 Annual Report 2015 Unearned discounts (Note 9) 9) (Note discounts Unearned 15) (Note losses credit and impairment for Allowance -gross assets Other Goodwill Intangible assets associates in Investments assets tax Deferred ofaccumulated -net properties Investment fi furniture, premises, Bank Nonfi Cash and other cash items cash other and Cash Financial assets *Accrued interestandotherexpenses includeaccrued interestpayable andaccrued otherexpenses payable (Note18). Other liabilities payable tax Income liabilities tax Deferred expenses other and interest Accrued Nonfi Other liabilities Subordinated debt Derivative liabilities expenses* other and interest Accrued Manager’s checks Bills payable (Forward) -gross assets Other -gross receivable interest Accrued -gross receivables and Loans HTM fi AFS fi atFVPL assets Financial Interbank receivables loans banks other from Due BSP from Due Deposit liabilities Financial liabilities depreciation depreciation and amortization ofaccumulated -net equipment and nancial assets nancial liabilities nancial assets -gross assets nancial nancial assets xtures Notes toFinancialStatements –131201,381,280 –839,748839,748 –3,972,3083,972,308 1,381,280 –373,591373,591 6,356,189 – –6,685,9506,685,950 6,356,189 – Months Twelve Within Months Twelve Within –116171,116,147 P 1,116,147 – – – P P 3,1,0 46816464,948,344 34,638,136 430,310,208 5,1,7 8,5,3 444,063,505 185,152,931 258,910,574 3,2,4 P 431,626,442 P 412,650,027 3,7,1 3,9,0 265,965,414 131,495,001 134,470,413 92054 19,200,544 – 19,200,544 00281P 10,052,891 102738024719,085,180 8,022,477 11,062,703 70366 77,003,616 – 77,003,616 ,0,4 –4,404,342 – 4,404,342 ,6,8 –2,269,589 – 2,269,589 ,5,9 –1,456,498 – 1,456,498 ,3,8 8,8 3,319,867 283,282 3,036,585 ,0,4 5650546,840,522 45,635,075 1,205,447 ,1,3 ,3,1 13,945,645 5,430,412 8,515,233 ,5,5 ,0,6 5,465,417 2,309,161 3,156,256 7,4 6,8 1,739,525 21,348,591 963,681 20,572,747 775,844 775,844 7,6 –670,265 – 670,265 0,3 1,7 914,009 111,078 802,931 7,8 –375,780 – 375,780 3,2 6,5 301,779 164,256 137,523 633 66,373 – 66,373 Mnh Total Months Twelve Over Mnh Total Months Twelve Over 66569P 26,615,659 60967P 36,029,617 2015 2015 –P P 439,265,686 526,826,963 467,656,059 10,052,891 (9,412,548) (9,134,213) (278,335) Parent Company Consolidated –839,748839,748 –3,677,1003,677,100 –534,881534,881 –848,686848,686 –6,792,8346,792,834 –6,253,3956,253,395 Months Twelve Within P Months Twelve Within P –121981,241,938 1,241,938 – 1,6,6 7,1,1 398,485,982 179,817,619 218,668,363 8,2,7 89036411,916,277 28,990,306 382,925,971 2,8,0 2,4,7 251,725,272 128,441,671 123,283,601 7,6,3 P 373,561,333 8,5,9 P 384,054,399 05387 60,543,867 – 60,543,867 P 58671 15,836,701 – 15,836,701 ,4,4 7,7 2,424,419 378,170 2,046,249 ,8,0 –1,989,209 – 1,989,209 ,7,8 ,5,9 6,320,580 3,250,095 3,070,485 ,2,7 –3,228,576 – 3,228,576 ,2,9 –1,221,395 – 1,221,395 ,9,3 P 9,295,130 ,6,4 0044621,220,345 2,273,701 20,054,496 1,107,852 1,165,849 1,165,849 ,8,9 ,2,3 8,012,435 3,927,238 4,085,197 ,1,2 0941,076,938 60,914 1,016,024 ,8,6 –1,188,762 – 1,188,762 9,0 0379211,353,788 10,357,982 995,806 6,0 6725837,081,561 36,712,558 369,003 2,0 –223,600 – 223,600 5,1 –553,810 – 553,810 0,6 0,7 407,233 305,773 101,460 0,1 –101,610 – 101,610 094 10,944 – 10,944 Mnh Total Months Twelve Over Mnh Total Months Twelve Over 05891P 30,598,931 57021P 25,740,211 2014 2014 –P P 414,653,330 399,301,544 471,220,813 471,220,813 (8,904,598) (9,402,016) 9,295,130 (497,418) 159 Annual Report 2015 (242,963) 4,748,199 (8,165,838) (8,408,801) 17,164,143 14,276,616 407,501,379 341,084,635 350,682,816 P 2014 7,525,518 P 4,748,199 P 9,830,150 P Over Twelve Months Total –P 127,142,781 1,271,428 161,609,878 1,616,099 1,716,414,317 P 1,427,661,658 P 1,397 – 1,397 2,500,000,000 67,750 – 67,750 957,711 60,914 1,018,625 101,610– 101,610 822,179 – 822,179 930,297930,297 16,493,901 926,671 17,424,198 1,856,968 293,850 – 293,850 2,115,169 – 2,115,169 2014 SharesAmount 2,933,883 2,243,718 5,177,601 333,559,117 P 340,852,666 P 340,852,666 339,825,808 9,769,236 349,595,044 P –3,115,6003,115,600 –842,367842,367 – –166,273166,273 6,016,950 – – 6,016,950 455,000 222,841 455,000 222,841 P Within Twelve Months P 17,164,143 18,537,285 Parent Company Parent (168,620) 4,997,202 (8,227,592) (8,058,972) 373,603,416 397,885,989 457,735,601 P 2015 4,997,202 P 5,360,993 P 12,837,593 P Twelve Over Twelve Months Total 137,314,180 1,373,142 1,716,414,317 P –P 1,853,728,497 P 2,500,000,000 2015 SharesAmount – – 66,373 – 66,373 741,479 – 741,479 107,906 – 107,906 345,312 – 345,312 798,322 107,237 905,559 355,436 – 355,436 469,848469,848 785,818 21,429,840 21,899,688 1,255,666 3,337,858 – 3,337,858 11,053,287 7,369,363 18,422,650 385,048,396 P 368,242,423 P 383,796,856 12,730,356 396,527,212 –1,369,1471,369,147 – –166,273166,273 10,019,471 –762,808762,808 10,019,471 – 222,841 222,841 –3,106,2803,106,280 P Twelve Within Twelve Months P P xtures xtures Stock dividends* Stock Balance at beginning of year Stock rightsStock nancial assets nancial nancial liabilities nancial depreciation and equipment - net of accumulated amortization and depreciation *The stock dividends declared include fractional shares equivalent to 1,035 shares in 2015 and 1,058 shares in 2014. and to 1,035 shares in 2015 dividends declared include fractional shares equivalent stock *The Common stock - 10.00 par value Authorized - shares Issued and outstanding Deferred tax assets Investments in subsidiaries Investment in associates assets Intangible Goodwill Other assets - gross Allowances for impairment and credit losses (Note 15) Investment properties - net of accumulated Unearned discounts (Note 9) Nonfi Bank premises, furniture, fi Derivative liabilities Derivative liabilities Other Nonfi Accrued interest and other expenses Manager’s checks checks Manager’s Accrued interest and other expenses* Income tax payable Financial liabilitiesFinancial liabilities Deposit payableBills liabilities Other (Note 18). payable other expenses accrued and interest payable include accrued interest and other expenses *Accrued EQUITY number of shares): for (amounts in thousands, except consists of capital stock Company’s Parent The 22. 22. 160 Annual Report 2015 On May 8,2014, theBODapproved stock thedeclarationof8.00% andP August 12, 2015. The BSPandSECapproved thedividenddeclarationonJuly 10, 2015. On May 2,2013, theBODapproved thedeclarationof10.00% stock andP September 19, 2014. The BSPandSECapproved thedividenddeclarationonJuly 2,2014. As ofDecember31,2015 and2014, surplusincludestheamountofP differsDecember 2008 extentfollowing toacertain fromthecomputation BSPguidelines. 11 No. in Circular issued Memorandum SEC with accordance in declaration dividend for available ofsurplus computation The July 19, 2013. The BSPandSECapproved thedividenddeclarationonJune 21,2013. associates amountingtoP In theconsolidatedfi amount willbeavailable tobedeclared asdividendsuponsaleoftheunderlyingland. transfer ofrevaluation incrementonlandwhich was carried atdeemed cost whentheGrouptransitionedtoPFRS(Note11 in2005 On May 7, 2015, the BODapproved stock thedeclarationof8.00% andP Dividends December 31,2015 and2014. As reportedby theParent Company’s transfer agent,Stock Transfer numberofstockholders Inc.,thetotal is1,980as Service, and that it maintains strong credit ratings and healthy capital ratiosinordertosupportitsbusinessandmaximize strongcreditratingsandhealthy shareho capital and thatitmaintains objectivesThe oftheGroup’s primary managementaretoensure thatitcomplieswithexternallyrequire capital imposedcapital Capital Management stock. forannual appropriationisrequireduntil thesurplusreserves trust oftheParent businessequals20.00% Company’s authorized In compliancewithBSPregulations,10.00% oftheParent Company’s profi Reserves the investees. declaration. The innetearningsbecomesavailable accumulatedequity for dividendsupondeclarationandreceiptofcashdivid P On May 8,2014, theBODapproved andthestockholders ratifi above thenew Basel IIIrequirements,particularlyinlightoftherecentacquisitionPDB. The willenabletheParent additionalcapital Company topursuegrowthadequacyleve strategieswhileensuringthatitscapital was deductedfromadditionalpaidincapital. The summarized information ontheParent company’s registrationofsecuritiesundertheSecuritiesRegulation Codefollows: respectively. Parent Company’s authorizedstock capital was subsequentlyapproved by theBSPandSECon August 7, 2014 and August 29,201 May 13, 2014. The proceedsofthestock total rightsoffering amountedtoP The stock rights offering yieldedasubscriptionof161,609,878 commonshareswhich were listedatthePhilippineStock Exchang shareholders. The BSPapproved thestock rightsoffering onMarch 18, 2014. On March 5,2014, theBODauthorized theParent Company toconductarightsissue,by way ofoffering commonsharestocertain The Parent Company sharesarelistedinthePhilippineStock Exchange. 20.00 billiontoP 20.00 uut2,21 2,500,000 2,000,000 250,000 1,600,000 1,000,000 500,000 200,000 150,000 100,000 Shares* Authorized 2012 in split stock ten-for-one the of effects the show to *Restated 2014 29, August September 5, 2008 14, 2007 September September 5, 2005 12, 1997 September 1995 26, July 1994 30, August 7,October 1993 12, 1991 April Approval ofSEC Date 25.00 billion,orfromP 25.00 aportionoftheGroup’snancial statements, surpluscorresponding tothenetearnings of thesubsidiariesand 296.00 millionandP 296.00 Notes toFinancialStatements 2.00 billiontoP 2.00 233.28 millionasofDecember31,2015 and2014, respectively, isnotavailable for dividend 2.50 billionshareswithparvalue ofP ed theincreaseinParent Company’s authorizedstock capital from 1.28 billion,netofdeferred ofP liability tax 1.00 persharecashdividendstostockholders ofrecordas t fromtrust businessisappropriatedtosurplus reserve. This 1.00 persharecashdividendstostockholders ofrecordas 1.20 persharecashdividendstostockholders of recordasof 7.93 billion,netofstock issuancecostofP 10.00 pershare. The increaseinthe 547.40 million,representing 67.53 millionwhich lders’ value. ends from ls remain capital capital eligible ments ). This e on of 4, 161 Annual Report 2015
of nd − − − − pital ons. 2014 2014 based sed on 7,776 2,686 2,686 2,389 k effect k effect 0% and 44,191 44,191 stments stments 51,967 20,273 46,877 nce with he BSP. ed under 291,021 e basis of P 268,359 P P racteristics racteristics es a capital P s under the WA), should should WA), acceptances g capital until o shareholders, − − − − 2015 2015 2,274 2,955 2,955 11,124 54,136 43,012 43,012 22,703 45,967 319,860 P 294,883 P P P − − − − 2014 2014 3,196 3,196 2,655 5,248 21,025 47,857 47,857 53,105 51,053 343,188 319,508 P P P P (Amounts in Million Pesos) (Amounts in Million Pesos) − − − − nition of qualifying capital particularly on Hybrid Tier 1 and Lower CAR using these guidelines. 2015 2015 Consolidated Company Parent Consolidated Company Parent 2,770 6,678 3,486 47,393 54,071 50,879 25,906 348,149 376,825 P P P ce and branches) and consolidated basis (Parent Company and subsidiaries engaged Company and consolidated basis (Parent ce and branches) nancial allied undertakings but excluding insurance companies). Qualifying capital and RWA are computed based on BSP regulati are computed based insurance companies). Qualifying capital RWA and nancial allied undertakings but excluding Net Tier 1 CapitalTier 2 Capital 47,393 Less: Regulatory Adjustments Net Tier 2 Capital 3,486 Total Qualifying Capital Qualifying Total P Credit RWA Credit CET 1 Capital Additional Tier 1 Capital Less: Regulatory Adjustments Tier 2 capitals), starting and January before the effectivity 2011 1, of BSP Circular No. shall 781, be recognized as qualifyin revised capital framework shall no longer be recognized as capital upon the effectivity of Basel III. Capital instruments issu III. Capital instruments of Basel as capital longer be recognized upon the effectivity shall no capital revised framework BSP Circular Nos. 709 (the and circulars 716 amending the defi December 2015. In addition 31, changes to in minimum capital requirements, this Circular also requires various regulatory adju in the calculation of qualifying capital. in the table as reported to the BSP are shown below. as of December 31, 2015 Company CAR of the Group and the Parent The this ratio shall be maintained at all times. capital do not meet the eligibility criteria for instrument which as of December 31, 2010 capital existing instruments Further, regulatory accounting policies which differ from PFRS in some respects. from PFRS differ regulatory accounting policies which percentage capital as a In addition, the risk-based assets (R of qualifying capital ratio of a bank, expressed to risk-weighted both solo basis (head offi for not be less than 10.00% as their subsidiary banks and commercial banks, as well banks and quasi-banks, in accorda universal disclosure requirements for on January 1, 2014. circular took effect The III standards. the Basel It also introduc Tier 1 capital ratio of 7.50%. ratio of 6.00% and Tier 1 (CET1) Circular sets out a minimum Common Equity The at 10.0 CAR remains unchanged Total for requirement existing BSP’s The capital. of 2.50% comprised of CET1 conservation buffer in fi on the amount of the Parent Company’s unimpaired capital (regulatory capital) as reported to the BSP. This is determined on th This unimpaired capital (regulatory capital)reported to the BSP. as Company’s Parent on the amount of the on or assignment of deposits, loans or hold-out by loans covered of total consists BSP, assets less cash on hand, due from RWA the Monetary by and other non-risk items determined margin deposits of t by Board covered of credit to the extent under letters ca risk-based the revised under BSP Circular No. 538, issued the prescribed guidelines implementing 4, 2006, the BSP, August On Corporations, Corporates. LGUs, Government Banks, Minimum Capital which III Implementing Guidelines on Basel Requirements, the BSP issued Circular No. 781, 2013, On January 15, particularly on the minimum capital a risk-based capital framework the implementing guidelines on the revised adequacy provides Regulatory Qualifying Capital compliance with regulatory and ratios is requirements Company’s regulations, the determination of the Parent BSP Under existing adequacy framework for the Philippine banking system to conform to Basel II capital adequacy framework. The BSP guidelines too The II capital to Basel adequacy framework. to conform the Philippine banking system for adequacy framework MDBs, to Sovereigns, exposures used on peso-denominated were while PhilRatings and Fitch, Moody’s Standard ratings by & Poor’s, Standardized credit risk weights were used in the credit assessment of asset exposures. Third party ba Third credit assessments were used in the credit assessment of asset exposures. were Standardized credit risk weights on July 1, 2007. Thereafter, banks were required to compute their banks were Thereafter, 1, 2007. on July Less: Regulatory Adjustments RWA Market Operational RWA Operational Total RWA December and 2015 2014. 31, of its activities. In order maintain to or adjust the capital structure, the Group may adjust the amount dividend of payment t returncapital shareholders to or issue capitalsecurities. No changes were made in the objectives, policies and processes as The Group manages its capital structure and makes adjustments it to in light of changes in economic conditions and the risk cha Net defi Present value
benefi obligation benefi of defi 162 Annual Report 2015 ned ned t asset tasset t ned ned Fair value ofplan assets 23. *Presented under Compensation and fringe benefi fringe and Compensation under *Presented defi The Grouphasseparatefundednoncontributory RETIREMENTPLAN The amountsofnetdefi andinterestonsuchliability unfundedactuarial liability. The Group’s annualcontributiontotheretirementplanconsistsofapayment covering cost,unfundedactuar thecurrent service actuarial valuation studies oftheretirementplanswere madeasofDecember31,2015. plans, allcovered offi The retirementplansareadministeredby theParent Company’s Trust Groupwhich actsasthetrustee oftheplans.Underthese The movements inthedefi 19) (Note liabilities Retirement Net plan assets (Note 14) (Note assets plan Net Total capital ratio ratio 1capital Tier ratio 1capital CET as regulatory edicts. BSP requires submission of an ICAAP document every March edicts.BSPrequiressubmissionofanICAAPdocumentevery as regulatory 31. The Grouphascompliedwith thisrequireme areassessed anddeterminedinlightoftheParentcapital Company’s businessenvironment, plans,performance, risksandbudget Pillar 1setofcredit,market andoperationalrisksontootherdeemedmaterialby theParent Company. The level and byappropriate levelaremaintained theGroup.Underthisframework, ofcapital andquality theassessmentofrisksextends be Circular No.538.Incompliancewiththiscircular, theParent Company hasadoptedanddeveloped itsICAAPframework toensure The issuanceofBSPCircularNo.639covering supplementstheBSP’s theICAAPin2009 adequacyframework risk-basedcapital und The Parent Company hascompliedwithallexternallyrequirementsthroughouttheperiod. imposedcapital SEC, whichever comesearlier. Company, CBSIandPDBuptoone(1)year oruponissuanceofthecertifi ratiosprescribedunderBaselwith theminimumcapital IIIframework positionof beassessedbasedontheconsolidatedcapital On August 14, 2015, theMBofBSP, initsResolution No.1292 approved therequestofParent Company thatPDB’s complia ,5,9 −366419225596(5,4) 2752 2200 4952 −3,851,428 (253,042) − (479,532) (257,512) 525,906 (222,020) − 139,272 386,634 − 4,058,096 P 2015 January 1, P a b c d e f g h i j (k) (j)=g+hi (i) (h) (g) (f) (e)=c+d (d) (c) (b) (a) ,7,9 P 4,678,994 transfer PVO 2,9 P 620,898 cers andemployees areentitledtocashbenefi nedbenefi evc ot Netinterest servicecost Current nedbenefi −(P − P ts in the statements of income. of statements the in ts tassetinthebalancesheetsfollow: Notes toFinancialStatements 8,3)P 386,634) tasset,presentvalue ofdefi Net benefi −P t cost 1,8 P 212,682 340(P 73,410 expense* Net pension ned benefi 1,2)P 313,224) (P 212,682 t retirement planscovering allitsoffi substantially paid Benefi 12.58% 12.58% 13.50% P P (164,256) (164,256) osldtdParent Company Consolidated 621,562 785,818 nedbenefi 2015 253,042) (P 253,042) requirements. ts after ageandservice satisfyingcertain The latest 2015 Consolidated ts −(P 2015 ed true copy ofthe Articles ofMergerandPlanby the innetinterest) included amount (excluding plan Return assets on tobligationandfair value ofplanassetsfollow: osldtdParent Company Consolidated 0,2)P 402,428) P 402,428) (Amounts in Million Pesos) Million in (Amounts Remeasurements inothercomprehensive income 14.88% 13.95% 13.95% P P (305,773) adjustments experience from changes arising Actuarial 620,898 926,671 2014 2014 5,1 P 257,512 − P – assumptions in from changes changes fi arising Actuarial 2,2 P 222,020 nancial −(P P P 785,818 785,818 14.37% 13.45% 13.45% cers and regular employees. 2015 gains (losses) remeasurement Changes in 2015 0,2)P 402,428) 714P 77,104 – 3,8 P 236,784 P 236,784 by Contribution employer structure of P P ial accrued retirement 926,671 926,671 the Parent 15.18% 15.18% 16.11% yond the ; aswell 4,472,990 2014 2014 621,562 nt. that 2015 December 31, nce (l) = a + b + e + f (l) =a+bef er + jk
163 Annual Report 2015 2014 2014 + j + k + j + k + j + k December 31, December December 31, December (l) = a + b + e + f (l) = a + b + e + f (l) = a + b + e + f December 31, December 2015 926,671 620,898 785,818 4,678,994 4,234,605 3,892,349 2014 3.54% 9.34% 11.70% 45.44% 29.98% 100.00% 51,727 P 51,727 P 32,687 P 32,687 P 110,243 P 110,243 P by employer Contribution by by employer Contribution by by employer Contribution by 14,329 P 377,193) P 397,682) P 447,003) P 420,263) P 569,835) P 2015 Changes in Changes (losses) remeasurement gains Changes in Changes (losses) remeasurement gains Changes in Changes (losses) remeasurement gains 6.70% 19.17% 16.44% 15.43% 42.26% 100.00% −(P nancial − (P −(P nancial nancial 181,654) (P 225,647 P 145,463) (P Actuarial fi arising changes changes from in assumptions Actuarial fi arising changes changes from in assumptions Actuarial fi arising changes changes from in assumptions − P − P − P 96,142 (P 32,082 (P 2014 165,875 P 3.37% 41.12% 10.78% 15.40% 29.33% Actuarial arising changes from experience adjustments Actuarial arising changes from experience adjustments Actuarial arising changes from experience adjustments 100.00% P Remeasurements in other comprehensive income Remeasurements in other comprehensive income Remeasurements in other comprehensive income comprehensive other in Remeasurements 377,193) 377,193) P 377,193) 397,682) P 397,682) 397,682) P 420,263) P 420,263) P Return on assets Return plan (excluding amount included interest) net in Return on assets Return plan (excluding amount included interest) net in Return on assets Return plan (excluding amount included interest) net in 2014 2015 2014 − (P −(P −(P ts ts ts t pension plan in 2016. Consolidated 2015 Consolidated Company Parent Parent Company Parent 209,041) (P 209,041) 125,301) (P Parent Company 249,985) (P −(165,875) (225,647)(391,522) −3,106,531 (225,647)(391,522) −(165,875) 17.49% 14.00% 16.44% 36.77% 15.30% 100.00% Benefi paid Benefi paid Benefi paid ned benefi 157,923) P 192,251 (P 250,652 (P 228,232 (P 206,909) P 230,569) P Net pension Net expense* Net pension Net expense* Net pension Net expense* 87,496 (P 96,487 (P 192,251 P 103,991 (P 250,652 P 228,232 P t cost t t cost t t cost t −P −P −P Net benefi Net Net benefi Net Net benefi Net Net interest Net 261,914) P 327,056) P 294,405) P ts in the statements of income. ts in the statements of income. ts in the statements of income. − P −(P − P 3,532) (P Current service cost Net interest Current service cost interest Net service cost Current service 438,746P 146,534) (P 926,671 P PVO transfer PVO transfer PVO transfer
1,457,593 (P 1,502,442 (P 4,234,605P 4,549,601 P 4,496,669 P (a) (b) (c) (d) (e) = c + d (f) (g) (h) (i) (j) = g + h + i (k) (a) (b) (c) (d) (e) = c + d (f) (g) (h) (i) (j) = g + h + i (k) (a) (b) (c) (d) (e) = c + d (f) (g) (h) (i) (j) = g + h + i (k) P January 1, January 2015 January 1, January 2014 January 1, January 2014 P 3,307,934 − 294,405 104,755 399,160 (209,041) *Presented under Compensation and fringe benefi to contribute to its defi does not expect Company Parent The In 2015 and 2014, the major categories of plan assets as a percentage of the fair value of total plan assets are as follows: the major categories of plan assets as a percentage value of the fair and 2014, In 2015 *Presented under Compensation and fringe benefi *Presented under Compensation and fringe benefi Cash cash and equivalents instruments Debt assets Other Parent Company shares Parent Equity instruments assets assets P assets P Fair value of plan Fair value of plan
Fairvalue of plan ned ned t t asset t ned ned ned ned t asset t P t t asset t P t ned ned ned ned ned ned of defiof benefi obligation benefi benefi of defiof benefi obligation 2,994,227 3,532 261,914 124,241 −(125,301) 386,155 (96,142) 145,463 49,321 − 3,307,934 benefi of defiof benefi obligation 3,092,008 585,280 327,056 154,165 481,221 (249,985) − (32,082) 181,654 149,572 − 4,058,096 Present value value Present Net defi Net Present value value Present defi Net Present value value Present defi Net 164 Annual Report 2015 Other assets properties* Investment andLoans receivable AFS fi Due from BSP from Due The carrying valueThe oftheplanassetsGroupandParent carrying Company amountedtoP * Investment propertiescompriselocatedinManila. atFVPL assets Financial (1)(4,7)(246 1114 179 (8,097) 9,818 10,432 (1,719) 2,086 CBC-PCCI 2,190 (101,134) CIBI 132,209 (12,496) 64,629 15,302 PDB (248,373) 16,118 CBC-PCCI 284,376 CBSI CIBI 306,542 (P 6.00% 5.76% Parent PDB 4.56% 6.00% 5.88% 4.49% CBSI (-1%) 4.00% (+1%) 4.83% 4.60% Salary increase rate Parent 6.00% (-1%) (+1%) 5.77% 4.66% Discount rate 31, 2014 December 6.00% (-1%) 5.08% 4.54% (+1%) Salary increase rate (-1%) (+1%) Discount rate December 31, 2015 the defi The analysis sensitivity below hasbeendeterminedbasedontheimpactofreasonablypossiblechanges ofeach signifi Salary increase rate December January 31 Discount rate: 1 retirement plansareshown below: The principalactuarial assumptionsusedin2015 and2014 for indeterminingtheretirementliability Group’s andParent Co The following shows table thebreakdown offair value oftheplanassets: December 31,2015, andP Salary increase rate December January 31 Discount rate: 1 Deposits in banks Investments in unit investment trust fund trust investment unit in Investments Quoted debt securities Parent shares Company Quoted securities equity Corporate bonds nancial assets nedbenefi t liability asoftheendreportingperiod,assumingallotherassumptionswere heldconstant: tliability 4.68 billionandP Notes toFinancialStatements 4.23 billion,respectively, asofDecember31,2014. (P 1128 1,6)(932 109 (3,596) (1,059) (29,362) (10,864) (181,218) 5,5 3574,2 ,9 7,354 1,496 41,921 13,577 252,451 8,2)(P 186,222) 6,0 4194,3 ,6 7,690 1,566 44,939 14,179 267,709 6,7)(P 261,371) aetCS D IICBC-PCCI CIBI PDB CBSI Parent aetCS D IICBC-PCCI CIBI PDB CBSI Parent .5 .9 .3 .0 5.10% 5.10% 4.23% 4.99% 4.45% .0 .0 .0 .0 5.00% 5.00% 5.00% 5.00% 5.00% .4 .6 .0 .9 4.56% 4.49% 4.60% 4.66% 4.54% P 4,472,990 1,644,750 P 545,480 566,644 754,054 454,738 109,098 189,819 161,148 10,392 10,392 28,117 8,750 osldtdParent Company Consolidated 2015 282 (P 12,832) 108 (P 11,058) P 4,678,994 1,978,052 P 580,384 735,864 143,960 475,635 106,730 487,016 140,148 13,345 17,319 4.47 billionandP 2014 2014 2015 541 530 (P 55,340) 021 (P 30,271) P 3,892,349 1,644,750 P 3.89 billion,respectively, asof 739,208 453,881 545,799 136,568 187,484 85,382 73,437 10,309 10,309 8,750 6,781 2015 ,7)(P 1,072) ,6)(P 1,760) cant assumptionon P 4,234,605 P 1,924,115 694,609 468,266 279,980 479,894 136,568 106,730 115,381 15,455 mpany’s 13,103 2014 3,644) 8,403) 504 165 Annual Report 2015
f are on. d to 2014 2014 51,291 67,794 rms and 187,947 101,610 740,294 47.32 and 47.32 340,706 407,164 658,942 373,763 (204,051) P P 1,841,191 P 4.70 billion, 1,060,264 P 229.00 million, Derivative Liability 2014 2014 2013 2015 2015 3,065 (81,352) 8,733 – 12,369 33,816 6.95 billion and P 187,947 152,759) P 155,824) P 316,442 233,553 289,557 P 268,455 P 484,064 394,965 (270,836) P P P P (P P (P 1,204,976 2,084,005 P 349.00 million and P Derivative Asset 2015 0.37. 2014 (1,425) 47,031 45,606 35,876 66,373 P 497,144 P 530,258 396.88 million, P P 2,487,894 1,460,492 P Derivative Liability 2015 51.68. 2015 9,190 – 7,624 30,497 Consolidated Company Parent 283,112 P 299,926 P 785,931 468,972 P P P 1,465,118 2,720,021 P Derivative Asset 44.60, respectively, while the weighted average sell US dollar forward are P rates average while the weighted 44.60, respectively, 296.00 million, respectively, for the Group, and P for 296.00 million, respectively, 46.76 and P 46.76 ve years ve 522.00 million and P ve years ve *Net movements in the value related to embedded credit derivatives and IRS. and IRS. related to embedded credit derivatives in the value *Net movements Trading andTrading securities gain (loss)* (Note 20) Balance at beginning of year Foreign exchange gain (loss) Balance at end of year Fair value changes during the year Settled transactions net movements in fair value changes of derivative instruments are as follows: instruments of derivative changes value in fair net movements net movements in the value of the derivatives are presented in the statements of income under the following accounts: in the statements are presented of income under the following of the derivatives in the value net movements 615.00 million, P 615.00 44.95, respectively. Warrants Changes of Derivatives Value Fair The P respectively, for the Parent Company. the Parent for respectively, under non-cancelable operating leases follow: Company of the Group and the Parent minimum rentals payable Future conditions. Various lease contracts include escalation clauses, most of which bear an annual rent increase of 5.00% to 10.00%. include escalation clauses, most of which lease contracts Various conditions. amounte and 2013 2014 Annual rentals on these lease contracts included in ‘Occupancy cost’ in the statements of income in 2015, P LEASE CONTRACTS LEASE under certain te from the dates of contracts and are renewable periods ranging from one to 25 years lease contracts are for The DERIVATIVE FINANCIAL INSTRUMENTS FINANCIAL DERIVATIVE derivatives These to its clients. contracts as an accommodation enters into forward exchange Company the Parent Occasionally, not designated as accounting hedges. The aggregate notional amounts of the outstanding buy US dollar currency forwards of the outstanding US dollar currency aggregate notional amounts as of buy The hedges. not designated as accounting while the sell US dollar forward million, respectively, million and US$453.42 amounted to US$287.67 2014 and December 31, 2015 forward US dollar rates as o buy average Weighted US$440.00contracts amounted to million and US$585.71 million, respectively. December 31, 2015 and 2014 are P 2014 and December 31, 2015 Weighted average sell Euro forward rates as of December 31, 2015 is P sell Euro forward as of December 31, 2015 rates average Weighted amounted to P and 2014 aggregate notional amounts of the outstanding as of December 31, 2015 IRS The The aggregate notional amounts of the outstanding sell Euro currency forwards as of December 31, 2015 amounted to €241.02 milli €241.02 amounted to amounts of the outstanding aggregate notional forwards sell Euro currency The as of December 31, 2015 The The JPY241.02 million. Weighted average sell JPY forward rates as of December 31, 2014 is P JPY forward sell 2014 rates as of December 31, average Weighted million. JPY241.02 The aggregate notional amounts of the outstanding sell Japanese yen (JPY) currency forwards as of December 31, 2014 amounted to forwards (JPY) currency 31, 2014 as of December yen amounts of the outstanding aggregate notional sell Japanese The respectively. follow: of derivatives values the fair and 2014, of December 31, 2015 As After one year but not more than fi fi After Currency forwards Currency IRS Within one year 25. 25. 24. 24. 166 Annual Report 2015 26. The provision forconsistsof: incometax actual EARpaidorincurred butnottoexceed 1.00% oftheParent Company’s netrevenue. income.Undertheregulations,EARexpensebe claimedasadeductionagainsttaxable allowed as a deductibleexpense islimite regulationsalsoprovideCurrent tax for amusementandrecreation(EAR)expense theceilingonamountofentertainment, tha expenses incalculatingincometaxesduefor RBUandFCDU. between FCDUs/EFCDUsorOBUandRBUwithinRBU. Pursuant totheregulations,Parent Company madeanallocationofits On March 15, 2011, theBIRissued corporate tax. the 30.00% Interest incomeondepositplacementswithotherFCDUsandOBUsistaxedat7.50%, whileallotherincomeoftheFCDUissubjec expanded system issubjectto10.00% grossincometax. banks istax-exempt banksun whileinterestincomeonforeign currency loansfromresidentsotherthanOBUsordepository derived by theFCDUfromforeign currency transactionswithnonresidents,OBUs,localcommercialbanksincludingbranches offo Effective exemption inMay RANo.9294restoredthetax 2004, ofFCDUsandoffshore bankingunits(OBUs).Undersuch law, the income in thenexttaxable threeyears fromtheyear ofinception. for creditagainstfuture liability thenextbe usedasatax incometax threeyears. Inaddition,theNOLCOisallowed asad An MCITonmodifi of2.00% expense allowed asadeductibleexpenseofinterestincomesubjecttofi isreducedto33.00% Republic Act (RA)No.9337, An Act Amending NationalInternal provisions, arepresentedas‘Provision ofincome. forinthestatements incometax’ interest incomefromgovernment securitiesandotherdepositsubstitutes. These incometaxes,aswell asthedeferred bene tax Within one year one Within After more than fi than more After fi than more not but year one After Deferred MCIT RCIT Final tax Current andFCDUfi Income taxesincludecorporateincometax OTHER INCOME AND TAXES Future receivable minimumrentals undernoncancellableoperatingleasesfollow: The GroupandtheParent Company have leasesonitsinvestment alsoenteredintocommercialproperty properties(Note12). ve years edgrossincomeiscomputedandcomparedwiththeRCIT. Any excess MCIT over RCIT isdeferred andcan ve years Notes toFinancialStatements 1,473,031 1,007,447 P P Revenue Regulation (RR)No.4-2011 which prescribestheattribution andallocationofexpenses (663,062) 435,649 809,969 29,935 2015 osldtdParent Company Consolidated (As restated - restated (As P ,6,2 P 1,564,927 ,9,1 842,348 1,498,315 P oe1)2013 Note 10) nal taxes,asdiscussedbelow, andfi 7,3 P 575,434 8,8 367,640 888,188 463– 34,693 662(167,812) 66,612 2014 Revenue Code,provides thatRCIT whileinterest rate shallbe30.00% P P 23,867 38,575 67,907 5,465 osldtdParent Company Consolidated 2015 674,536 474,708 474,708 − – P P 89,405 81,045 8,360 2014 1,359,150 P P (531,080) 828,070 941,923 417,227 nal tax paid at the rate of 20.00% ongross paidattherateof20.00% nal tax naltax. 2015 − – P ,0,3 P 1,408,832 ,4,2 820,289 1,343,420 P P P 8,462 2,792 5,670 7,8 P 472,387 7,3 345,599 871,033 2015 542(170,361) 65,412 042013 2014 − eduction from 649,928 P 474,690 P 10,186 d tothe 2,986 fi income 7,200 der the ts and ts 2014 reign t can t to 167 Annual Report 2015 231 Year Year 2014 2014 Expiry Expiry Expiry Expiry 43,212 30,002 64,855 842,367 (121,602) (100,784) (102,637) (547,405) P 1,641,350 2,759,526 2,694,671 P P P – − − − −2015 −2015 233 2015 2015 32,171 43,212 97,607 65,993 (79,348) Balance Balance 979,955 467,368 (100,784) (547,405) (102,637) P 1,369,147 2,123,705 1,045,948 P P P – − − − 877 2014 2014 27,765 P 27,765 P 24,827 (91,171) 38,658 (31,177) 102,549 393,252) 282,863 (142,381) (100,784) (547,405) 5,749,797 1,667,492 1,540,151 P 1,540,151 1,540,151 P 1,979,436 3,346,291 (1,173,530) (P P P P (As restated - Expired Amount Remaining Expired Amount Remaining Note 10) Note −P −P 231 2015 2015 Used Used Consolidated Company Parent Consolidated Company Parent 28,155 97,607 39,218 43,688 95,584 P 95,584 95,584 P (79,348) 265,133 467,368 291,386 Amount Amount (108,762) (100,784) (547,405) P 2,149,489 (1,115,661) 1,969,250 2,869,299 P P P 27,765 P Original Original Amount Amount 125,372 P P 2,103,103 P 1,635,735 P P t asset t did not set up deferred tax assets on the following temporary differences as it believes that it is highly probable that these as it believes temporary tax differences assets on the following did not set up deferred ned benefi ned dacion transactions - net of depreciated portion PDB and Unity Bank details of net deferred tax (liabilities) follow: assets details of net deferred Unamortized past service cost Others Accrued rent Accrued Net defi Net Fair value adjustment on asset foreclosure and Unrealized gain on FVPL and AFS Fair value adjustments on net assets (liabilities) of Revaluation increment and on land 22) (Notes 11 Allowancefor impairment and credit losses As of December 31, 2015, details of the excess of MCIT over RCIT of the Group follow: RCIT over of MCIT details of the excess of December 31, 2015, As The Group The future: in the near foreseeable will not be realized temporary differences 2012 P Inception Year Inception 2012 P Inception Year Inception The The 201320142015 37,783 37,001 22,823 − − − − − − 37,783 37,001 22,823 2016 2017 2018 201320142015 238,439 − 177,085 51,844 − − − 238,439 − − 2016 177,085 51,844 2017 2018 Excess of MCIT over RCIT Accrued compensated absences NOLCO are as follows: details of the Group’s of December 31, 2015, As NOLCO Allowance for impairment and credit losses Deferred tax assets (liabilities) on Others 168 Annual Report 2015 Statutory incomeStatutory tax 28. 27. FCDU income of Tax effects Non-taxable income Interest income subjected to fi to Nondeductible subjected income Interest expenses Others Provision for income tax income for Provision Deposits in banks Total value market held ofshares Number Interest income Dividend income AFS fi an authorized trust offi AFS fi retirementplansfollows: oftransactionswithrelatedparty A summary management personneloftheParent Company. parties, areapproved by the Trust Investment Committee (TIC)ofthe Parent Company. The membersofthe TIC aredirectors and funds may holdortradetheParent Company’s sharesorsecurities.Signifi totheprovision incometax forfollows:The incometax reconciliationofthestatutory P • infl Parties hasthe ability, areconsideredtoberelatedifoneparty directlyorindirectly, orexerci tocontroltheotherparty RELATED PARTY TRANSACTIONS bonds includedunder AFS fi In compliancewiththerequirementsofcurrent banking regulationsrelative totheParent Company’s trust functions:(a)govern benefi Securities andotherproperties(otherthandeposits)heldby theParent Company infi TRUST OPERATIONS fi December 31,2015 and2014, respectively, for aredepositedwiththeBSPassecurity Parent Company’s faithful compliancew This yearly transfer for isrequireduntilthesurplusreserve trust oftheParent functionequals20.00% Company’s authorized to P In 2013, dividendincomeandinterest incomeoftheretirementplanfrominvestments andplacementsintheParent Company amoun • • • earned by theGroupandParent Company fromsuch amounted toP services with anumberofitsretirementplanspursuanttowhich itprovides tothese plans. Income trust andmanagement services Under PFRS, post-employment certain benefi Transactions withRetirement Plans of businessandbasedonthetermsconditionsdiscussedbelow. The Grouphasseveral businessrelationshipswithrelatedparties. Transactions withsuch parties arenormallymadeintheord oftheParent percentage Company’s obligations(Note8);and(b)acertain duciary trust fee incomeistransferred tosurplus
46.91 millionandP uenceover inmakingfi theotherparty 35.17 millionandP infl key managementpersonnel,closefamily membersofkey managementpersonnelandentitieswhich arecontrolled,signifi post-employment benefi subsidiaries, jointventures andassociatestheirrespective subsidiaries, and signifi nancial assets nancial assetsrepresentsharesofstock oftheParent Company. Voting rightsover theParent Company’s sharesareexercised ciariesarenotincludedintheaccompanying balancesheetssincethesearenotassetsoftheParent Company (Note29). uencedby orfor which signifi cantinvestors 44.05 million,respectively, in2014, andP cer. 5.01 million, respectively, for theGroup,andP nal tax tplansfor thebenefi facenancial assetsinthebalancesheetswithatotal value ofP Notes toFinancialStatements cantvoting power isheldby key management personnelortheirclosefamily members, nancialandoperatingdecisions. The Group’s relatedpartiesinclude: P 1,923,764 P (300,817) (459,351) (168,700) (121,494) 809,969 (63,433) t plansareconsideredasrelatedparties. The Grouphasbusinessrelationships 2015 toftheGroup’s employees. osldtdParent Company Consolidated P P ,3,3 596,864 1,234,635 ,6,2 P 1,564,927 ,0,7 P 2,003,974 42.67 millionandP 4384 (246,574) (453,824) 6831 (730,180) (618,351) 5418 (407,004) (524,178) 7,2)(271,065) (77,329) 1,644,750 1,644,750 1,644,750 1,644,750 042013 2014 P 40,939 44,214 75,278 75,278 35.17 millionandP osldtdParent Company Consolidated 2015 697 cant transactionsoftheretirementfund,particularlywithrelated 1,732,495 674,536 42.39 million,respectively, in2013. The Group’s retirement 44.19 millionandP 1,978,052 1,978,052 P 415,585 4.79 million,respectively, for theParent Company. 40,939 37,906 2014 oragencycapacitiesfor clientsand duciary 734 P 2,002,359 P (232,661) (472,787) (330,074) (180,071) 828,070 41,304 2015 250.62 millionandP 41.35 million,respectively, in2015, 1,644,750 1,644,750 1,644,750 1,644,750 P P 40,939 44,214 P 73,437 73,437 ,0,3 P 1,408,832 ,5,2 P 1,957,021 2089 (234,211) (230,809) 4936 (407,254) (479,306) 2015 3917 (715,564) (349,137) 3,3 501,389 532,835 511 511 2,7)(244,756) (21,772) 042013 2014 1.22 billionasof se signifi capital stock.capital inary course inary 1,750,324 1,924,115 1,924,115 P 649,928 103,511 40,939 37,906 reserve. reserve. 2014 cantly ith its 664 ment cant key key ted by by
169 Annual Report 2015 p of rs do rposes vities of 311,417 313,916 d associate 8.02 million, 2014 2013 3,645 2,499 317,114 P 313,469 P P P 16.12 million and P million and 16.12 2015 3,946 329,270 329,270 325,324 P P 32.82 million. 28.44 billion. 5.13% and maturity of four years; collateral years; of four maturity and 5.13% of value with fair includes shares of stocks P rate of 0.13%. to 21.00%. 15.00% interest rates ranging from 0.25% to 1.00%. amounting to P respectively. Secured loans bear annual respectively. years. interest rate of 6.00% of 15 and maturity value Collateral includes real properties with fair of P with annual average interest rates ranging from with annual average 0.25% to 1.00%. annual average interest rates ranging from annual average to 1.00%. 0.13% These are checking accounts with annual average accounts with annual average are checking These fromContract-to-sell loans with annual interest rate accounts with annual average are savings These includes secured and unsecured loans This These are checking, savings and time deposits savings are checking, These These are checking and savings accounts with and savings are checking These 348,302 344,566 16,121 35,438 nition of related party transactions. Transactions between the Transactions nition of related party transactions. 948,449 December 31, 2015 December 31, 2,710,000 8,216,412 25,681,538 2014 2013 7,646 3,736 407,964 P 400,318 P P P – Consolidated Company Parent –P 500.00 for attendance at each meeting of the Board or of any committees and to four and to four committees or of any Board meeting of the at each 500.00 attendance for 7,901 7,901 61,703 (14,311) 49,896 2015 (93,953) 106,168 106,168 (13,458) 6,526 (107,432) (290,000) 3,633,465 411,833 418,359 (4,029,046) P P – – P ts ts cant Investor cant Repayments Deposits Withdrawals Issuances Deposits Withdrawals Repayments Issuances Issuances Repayments Deposits Withdrawals Deposits Withdrawals CategorySignifi and receivablesLoans Volume / Amount Outstanding Balance and Conditions Terms are secured loans with interest rate of These Deposit liabilities Deposit liabilities Personnel Management Key and receivables Loans Associate and receivables Loans
Deposit liabilities Other Related Parties Other Related Deposit liabilities committees and subsidiary companies. committees These to them. services management personnel and persons connected banking Group also provides directors and other key The to transactions are presented in the tables below. Transactions Party Other Related and its subsidiaries meet the defi Company between the Parent Transactions subsidiaries an as related partyGroup and its associated companies also qualify Company’s transactions. Details of the Parent not receive any performance-related compensation. Directors’ remuneration covers all China Bank Board activities and membershi Board all China Bank remuneration covers Directors’ compensation. performance-related any not receive are disclosed in Notes 1 and 10. percent of the Parent Company’s net earnings, with certain deductions in accordance with BSP regulation. Non-executive directo net earnings, with certain in accordance with BSP regulation. Non-executive deductions Company’s percent of the Parent Short-term benefi employee are entitled to a per diem of P Members of the BOD of PAS 24. of PAS personnel are as follows: management of key remunerations Total Related party categoryRelated transactions of the Group by of related party are presented below. Group the Group, directly or indirectly. The Group considers the members of the ManCom to constitute key management personnel for pu personnel for management key to constitute the members of the ManCom Group considers The directly or indirectly. the Group, Remunerations of Directors and other Key Management Personnel and other Key of Directors Remunerations authority responsibility planning, having and are those persons management personnel the acti directing and controlling for Key Post-employment benefi 170 Annual Report 2015 sune P Issuances on n eevbe P andLoans receivables Signifi Category Category Amount / Volume Outstanding Balance Nature, Terms and Conditions and Terms Nature, Balance Outstanding /Volume Amount Deposit liabilities Subsidiaries Category Deposit liabilities 36,702 These are checking, savings and time deposit deposit time and savings are checking, These 36,702 P 281,250 P average annual with accounts savings are These 980,699 Interest income rates interest annual with loans Contract-to-sell 14,311 Interest incomeearnedandinterestexpense incurred fromtheabove loansanddepositliabilitiesin2015, 2014, and2013 follo average annual with accounts checking are These Deposits 4,582,947 Deposit 481,872 liabilities Parties Related Other (1) Deposits liabilities Deposit 4,582,888 – andLoans receivables (2,400,000) Personnel Management Key liabilities Deposit Repayments Issuances receivables and Loans Associate Withdrawals Deposits liabilities Deposit Repayments (Forward) Deposit liabilities Associate are presentedbelow. Related transactionsoftheParent party Companyofrelatedparty, by category except thosealreadypresentedintheGroupdisc Company Parent Company withtheserelatedparties. Related transactionsoftheGroupwithsignifi party Interest expense Interest income Interest expense sune P Issuances ihrwl (7,791,869) (362,831) (30,163) Withdrawals 16,760,465 (15,931,839) Withdrawals Repayments Withdrawals Deposits Withdrawals Deposits Withdrawals Deposits cant Investor Notes toFinancialStatements mut/Vlm usadn aac Terms Conditions and Balance Outstanding /Volume Amount 37,294,856 3,000,000 P (50,340) (93,953) 35,001 P cant investor, totransactionsoftheParent associateandother relatedpartiespertain 61,703 9,091 142,662 P Key Management Personnel Other Related Parties Related Other Personnel Management Key 1,270 1,270 1,039 1,039 2015 2015 Signifi 8 cn netrAssociate cant Investor P 4,9 P 146,695 P ,3 P 1,133 P 042013 2014 042013 2014 6 107 466 29,660,688 These are checking and savings accounts with with accounts savings and checking are These 29,660,688 P 3,000,000 These are secured loans with interest rate of5.13% rate interest with loans secured are These 3,000,000 4,550,697 6,508,157 14 December 31, 2014 December December 31, 2015 December 21,678 These are secured loans with interest rates ranging ranging rates interest with loans secured are These 21,678 20,556 average interest rates ranging from 0.25% to to 0.25% from ranging rates interest average annual with accounts savings are These These are checking and savings accounts with with accounts savings and checking are These 316 0.13% to 1.00%. from ranging rates interest average annual of P value fair with properties real includes Collateral of15 years. maturity and to 8.00% 5.50% from ofP value fair with ofstocks shares offi maturity and ranging from 0.25% to 1.00%. 0.25% from ranging rates interest average annual with accounts to 1.00%. 0.25% from ranging rates interest to 21.00%. 15.00% from ranging 0.13%. of rate interest 1.00%. 0.13% to 1.00%. from ranging rates interest average annual P 31.08 million. million. 31.08 P 1,288 2015 2,411 125 125 2015 – ve years; collateral includes includes collateral ve years; P P 260P 42,660 431P 14,341 ,3 172 1,332 042013 2014 042013 2014 9 120 199 22.11 billion. w: losures, – – 171 Annual Report 2015 – – ion to elation to : 106 – 2014 2013 2014 2013 1,081 P P 42,660 P P – 19 27 P 2015 2015 464.52 million. PDB recognized gain on 464.52 million. PDB recognized P interest rates ranging from 0.25% 1.00%. to interest rates ranging from 0.25% 1.00%. to annual average interest rates ranging from 1.00%. to 0.13% annual average interest rates ranging from 1.00%. to 0.13% 8.00% and maturity years. of 15 interest rates ranging from 0.25% 1.00%. to annual average interest rates ranging from 1.00%. to 0.13% 316 224 Loans with interest rates ranging from 6.00% to These are savings accountsaverage with annual These are checking and savings accounts with 1,752 12,901 December 2014 31, December 2015 31, 6,523,496 These are checking and savings accounts with 55 107 98 P 25,609,152 203 P P 2014 2013 2014 2013 P Subsidiaries Associate 76 78 137 P 2015 2015 P Key Management Personnel Other Related Parties 453 453 (856) 12,718 99,867 (100,466) 9,082,347 (4,029,046) 2.83 billion. 55.30 million. PDB’s gain on sale was eliminated at the group level. In addition, CBSI assigned its portfolio of In addition, CBSI assigned its portfolio eliminated at the group level. sale was gain on 55.30 million. PDB’s DepositsWithdrawalsDepositsWithdrawals (326,665) 263,274 (7,791,869) 37,261,605 Withdrawals (3,005,426) Deposits P Withdrawals Issuances Repayments Deposits Withdrawals Deposits Interest expense Interest Interest expense Interest recorded. was thus no impairment allowance Outstanding loan balances with related parties are unimpaired as at year-end, Deposits WithdrawalsKey Management Personnel Deposit liabilitiesOther Related Parties Deposit liabilities a total for selling price of P Company property to the Parent PDB sold its investment In 2015, 4,582,888 (1) 13,500 These are savings account with annual average 29,625,480 These are checking and savings accounts with income Interest Associate Deposit liabilities 4,582,947 These are savings accounts with annual average such sale amounting to P sale such As of December 31, 2014, CBSI has an outstanding letters of credit (LC) line with the Parent Company amounting to US$10.00 mill US$10.00 amounting to Company (LC) line with the Parent of credit CBSI has an outstanding letters of December 31, 2014, As accommodate the LC requirement of its clients (Note 29). accommodate the LC requirement of its clients in r and 2013 2014 losses in 2015, credit for are no provisions There in cash. related partyThe transactions shall be settled amounts due from related parties. follow and 2013 2014 loans and deposit liabilities in 2015, from the above incurred Interest income earned and interest expense receivables to PDB amounting to P receivables CategoryKey Management Personnel receivables Loans and liabilities Deposit Other Related Parties liabilities Deposit Amount / Volume Outstanding BalanceCategorySubsidiaries liabilitiesDeposit Nature, Terms and Conditions Amount / Volume Outstanding Balance and Nature, Conditions Terms P 172 Annual Report 2015 The followingtransactionsincludedinthefi showsbalanceofotherrelatedparty table theamountandoutstanding and new DOSRI loans,othercredit accommodationsgrantedundersaidCircular: to theloans,othercreditaccommodationsandguaranteesclassifi BSP CircularNo.423,datedMarch 15, amendedthedefi 2004, limits donotapplytoloanssecuredby assetsconsideredasnon-riskdefi which or15.00% loanportfolio, mustbesecured,shouldnotexceedcapital ofthetotal whichever 70.00% theregulatory islowe stockholders andrelatedinterests (DOSRI). Underexisting bankingregulations,thelimitonamountofindividualloansto As requiredby theBSP, theGroupdisclosesloantransactionswithitsandaffi ReportingRegulatory Percent of unsecured DOSRI loans to total DOSRI loans DOSRI to total loans DOSRI ofunsecured Percent Percent of DOSRI loans to total loans to total loans ofDOSRI Percent Circular BSP under granted loans ofDOSRI Percent regulations under granted loans ofDOSRI Percent loans DOSRI Total outstanding Outright purchases andoutrightsaleofdebtsecuritiestheParent Company withitssubsidiariesin2015 and2014 follow: Miscellaneous expense Peso-denominated Accounts receivable Balance Sheet No. 423 423 No. Circular to BSP prior existing Dollar-denominated Miscellaneous income Income Statement Occupancy cost Accounts payable Security deposits Outright purchase Outright sale Outright purchase Outright sale Notes toFinancialStatements 122,260 122,260 16,266 16,266 P 1,800 1,800 2015 P 2,445 2,445 3,303 3,303 3,301 3,301 2015 103,364 93,348 This pertains to the computer and general banking banking general and computer to the pertains This 93,348 103,364 P 16,411 18,240 Certain units of the condominium owned by CBSI are are byCBSI owned condominium ofthe units Certain 18,240 16,411 ,0 P 1,800 042013 2014 P 6,683 This pertains to various unpaid rental to CBSI rental unpaid to various pertains This 6,683 2,193 This pertains to the rental deposits with CBSI for offi for CBSI with deposits rental to the pertains This 2,193 1,724 This pertains to various expenses advanced by CBC in behalf ofCBSI behalf in byCBC advanced expenses to various pertains This 1,724 2014 nition ofDOSRI accounts. The following shows table information relating P 5,022,503 ed asDOSRI accountsunderregulationsexisting priortosaid Circular, out to the Parent Company Parent to the out osldtdParent Company Consolidated 3.05% 1.59% 1,800 Human resources functions provided by the Parent Parent bythe provided functions resources Human 1,800 2015 − − nedintheregulations. Subsidiaries Subsidiaries to support its reporting requirements reporting its to support Company Parent to the byCBC-PCCI provided services clause escalation no with years, offi aterm for Company Parent to the leased being Company an fee annual Company Parent the pay shall subsidiaries the subsidiaries, its and Company Parent the between agreement the systems and research, and employee benefi benefi and salary development, and training placement, and recruitment as such Bank) Unity and Forex CBC (except subsidiaries to its Company liates andinvestees directors,offi andwithcertain P 6,202,178 2.09% 5.65% 2014 − − US$9,000 Nature, Terms and Conditions and Terms Nature, P Nature, Terms and Conditions and Terms Nature, 603,000 P 277,420 4,997,513 5,934 Subsidiaries 2015 1.88% 3.02% 2015 − − ts development, nancialstatements: ce space leased leased space ce ts. Under Under ts. P US$1,800 6,136,700 P DOSRI, of 558,567 637,890 5.69% r. These 2.44% ve ve 1,400 2014 2014 cers, − − 173 Annual Report 2015 he not and and ing, kets kets and ctual ctual oup’s oup’s liates 2014 funds /quasi- urance 4,587 rantees 58,410 297,073 655,130 929,378 245,055 242,966 939,405 a manner 1,207,450 2,652,657 4,700,000 19,185,364 26,415,835 65,826,813 20,223,682 P 2015 13,991 74,508 144,155 297,073 210,993 792,581 753,930 1,130,390 7,435,851 3,259,734 6,950,000 13,407,792 21,031,257 78,663,914 18,431,395 P ve (25.00%) of the net worth of the lending (25.00%) worth ve of the net 2014 4,738 58,410 297,073 713,738 242,966 930,028 246,692 939,405 1,207,450 4,700,000 5,902,400 71,201,164 26,415,835 19,520,001 20,223,682 P nancial control, and other support services. Consolidated Company Parent liates engaged in energy and power generation. and power liates engaged in energy cer and/or stockholder of the lending institution, except where except of the lending institution, stockholder cer and/or 2015 cer of such corporation as representative of the bank/quasi-bank. corporation as representative cer of such 14,125 76,230 144,155 297,073 753,930 245,924 to corporate nance and corollary banking products and services offered 1,130,390 7,435,851 5,725,655 3,259,734 6,950,000 13,407,792 82,677,515 21,031,257 18,440,951 P as a result of these transactions. nancial statements. material losses does not anticipate any Management liates shall not exceed 10.00% of the net worth of the lending bank/quasi-bank, provided that the unsecured that the unsecured provided of the lending bank/quasi-bank, of the net worth 10.00% shall not exceed liates liates shall not exceed 20.00% of the net worth of the lending bank/ quasi-bank; and the subsidiaries and affi of the lending bank/ quasi-bank; 20.00% the net worth of liates shall not exceed cer or stockholder sits in the BOD or is appointed offi sits in the BOD cer or stockholder capital-raising services management services to corporate clients and wealth customers; and to high-net-worth banking business, operations and fi credit management, thrift brokerage, funding operations by the use of government securities, placements and acceptances with other banks as well as offers advisory securities, placements and acceptances as offers with other banks as well the use of government funding operations by and institutional customers as well as selected middle market clients. It also handles home loans, contract-to-sell receivables as selected middle market customers as well and institutional cash management services from the lending business, it also provides Aside customers. individual and corporate auto loans for transactions; remittance and all other services trade facilities retail facilities, for customers; transfer ciency claims receivable claims ciency fi ected in the accompanying d. management services, Others – handles other services and investment asset management, ins including but not limited to trust amounts: realigned in was organization structure the Group’s segment representing a strategic business unit. In 2014, served, with each Bank major groups (Consumer Banking, Institutional four From that caused the composition of its reportable segments to change. The following is a summary of contingencies and commitments of the Group and the Parent Company with the equivalent peso contra with the equivalent is a summary Company Parent following of contingencies and commitments of the Group and the The of services and the mar and managed separately according to the nature provided are recognized operating businesses Group’s The refl SEGMENT INFORMATION has three major business segments, namely: the Group now Treasury), and Banking Branch are as follows: business segments Group’s The a. Business – principally handles all the lending, Lending trade fi b. and Business – principally handles retail and commercial loans, individual and corporate deposits, overdrafts Retail Banking c. trading and treasury market, money services, – principally provides manages the Gr Financial Capital and Investments Markets COMMITMENTS AND CONTINGENT ASSETS AND LIABILITIES ASSETS AND CONTINGENT COMMITMENTS are outstanding which operations, there are various commitments and contingent liabilities In the normal course of the Group’s bank’s subsidiaries and affi subsidiaries bank’s the total outstanding and gua loans, credit accommodations Further, net worth. 5.00% of such shall not exceed portion of which to all subsidiaries and affi and affi of banks/quasi-banks to their subsidiaries bank/quasi-bank to loans The amounts of loans disclosed for related parties above differ with the amounts disclosed for key management personnel since t management key for with the amounts disclosed differ parties above related for of loans disclosed amounts The On May 12, 2009, BSP issued Circular No. 654 allowing a separate individual limit of twenty-fi a separate individual 2009,Circular No. 654 allowing BSP issued 12, On May composition of DOSRI is more expansive than that of key management personnel. than that of key expansive is more of DOSRI composition bank’s of the that the totalprovides outstandingBSP Circular No. 560 accommodation and guarantees to each loans, other credit offi director, are not related interest of any of the lending bank/quasi-bank offi director, such Trust departmentTrust accounts (Note 27) exchange soldFuture Unused commercial letters of credit (Note 28) lines card Credit IRS receivable IRS issued Outstanding guarantees Future exchangeFuture bought commitment Standby credit bought exchange Spot sold exchange Spot received deposits/payments Late Inward bills for collection Outward bills for collection Defi Others 30. 30. 29. 29. 174 Annual Report 2015 Total liabilities Total Third party Net interest income Operations of Results Depreciation and amortization Capital expenditures credit and impairment for Provision assets Total Net income tax income for Provision Income before income tax expense operating Other revenue Total income operating Other Intersegment refl for theyears endedDecember31,2015, 2014 and2013 (withcorresponding itemsofsegmentinformation for earlierperiodsresta The following presentrelevant tables fi information isnolongerpresented. The Group’s assetproducingrevenues arelocatedinthePhilippines(i.e.,onegeographicallocation);therefore, geographical The Grouphasnosignifi sharingarrangements.operating incomeandexpense segmentsbasedonequitable areallocatedbetween and creditlosses,taxeslicenses,occupancy, andinsurance depreciationandamortization,stationery, suppliesandpostage and foreign exchange gain-net.Otheroperatingexpense mainlyconsistsofcompensationandfringebenefi charges,Other operatingincomemainlyconsistsoftradingandsecuritiesgain(loss)-net,service fees andcommissions,trus business unitsbasedonapoolratewhich approximates themarginalcostoffunds. Transactions betweensegmentsareconductedatestimatedmarket ratesonanarm’s lengthbasis.Interestischarged/credited t The segmentresultsincludeinternaltransfer pricingadjustmentsacrossbusinessunitsasdeemedappropriateby management. and expense. Interest incomeisreportednetasmanagementprimarilyreliesontheinterestperformance measure, notthegross to thesegmentorcanbeallocatedonareasonablebasis. Segment liabilitiesarethoseoperatingthatresultfromtheactivitiesofasegmentandeither the segmentorcanbeallocatedtoonareasonablebasis. Segment assetsarethoseoperatingthatemployed by asegmentinitsoperatingactivitiesthatareeitherdirectly segments. The CODMoftheGroupisChiefOperatingOffi segmentinformationThe totheChiefOperatingDecisionMaker Groupreportsitsprimary (CODM)onthebasisof the above-mentio information torefl for allperiodspresentedhereinarerestated aswell asachieve ofproductsandservices delivery costeffi The Group’s businessesareorganized tocaterthebankingneedsofmarket segments,facilitatecustomerengagement,ensuret ect the new composition of reportable segments): ectthenew compositionofreportable losses cantcustomerswhich contributes 10.00% ormoreoftheconsolidatedrevenues. Notes toFinancialStatements − P nancial information regardingbusinesssegmentsmeasuredinaccordancewithPFRS asofand 200,906,783 P P P (5,226,806) (1,361,427) 5,543,350 9,884,601 1,050,634 4,657,795 4,181,923 4,181,923 P 258,725 885,55 P P 39,019 15,713 2015 5 edn uiesRetail Banking Business Lending Business P 9,9,9 P 196,097,393 P P 31294 (3,233,697) (3,102,914) ,0,3 4,875,677 6,502,836 ,3,2 3,797,417 5,330,026 ,6,5 4,217,997 5,869,759 11280 (1,078,260) (1,172,810) ,7,7 P 8,972,673 ,2,1 P 5,326,414 P P 7,4 P 775,648 3,7 657,680 633,077 P 7,6 P 377,664 P ciency andeconomiesofscale. Accordingly, the corresponding segment ectsuch change. 189P 21,879 cer. 362 − (3,612) ,4 P 9,341 042013 2014 168,272,868 7,451,694 3,797,417 896,570 412,468 12,160 11,740 P P 336,671,277 124,073,281 P (5,472,577) 2,572,523 6,624,532 1,420,568 2,567,523 8,045,100 6,377,212 P P P P 300,010 247,320 217,447 15,880 (5,000) 2015 P P 3,2,3 P 239,928,734 9,0,0 P 296,507,001 51963 (4,770,170) (5,109,623) ,7,8 4,792,869 5,673,583 ,6,7 4,150,825 4,564,274 (P ,9,7 1,186,744 1,296,578 ,7,0 3,606,125 4,377,005 P P ts, provision for impairment P 6,6 22,699 563,960 0,8 P 309,589 6,4 P 264,341 P 8,6)(P 187,269) 5,1 P 557,410 214P 92,164 650 (4,650) (6,550) 042013 2014 directly attributable 229,840,578 276,074,955 ttributable to t fee income 544,700) 345,769 173,267 18,049 87,630 segment income . Other ted to imely o the ned
175 Annual Report 2015 nding 2.75 e 8.00% 171,399) 755,684 386,345 5,103,258 1,424,287) 1,059,949 27,218,261 85,751,310) 2014 2013 201,104) (P 576,346 P 896,254 P (920,097) (251,815) 3,187,030) (P P P (P 1,416,383 1,075,418 1,783,925 503,869 2,704,022 P 3,200,308 1,579,287 2.76 P (1,103,363) (224,626) (5,283,975) (2,778,948) (2,083,667) (1,199,661) 2014 2013 73,786,135 P 34,087,895) (P P (P P P (P 5,117,832 P 1,853,728 1,853,728 P 2015 620,184 787,361 490,402 (447,105) (583,347) P P 1,923,133 3,410,854) 2,710,494 1,453,590 2,506,480 (2,963,749) (5,674,243) 70,825,521 97,842,229 P P (P P P 3.02 – 2015 P 3.27, respectively. 3.27, 8,612 5,922 1,853,728 5,606,666 414,336 752,886 P 1,165,241 5,100,447 9,935,991 2,273,313 2,709,268 413,697,923 64,108,438 368,298,224 101,335,787 3.08 and P – P 2014 2013 2014 2013 921,764 P 66,145 P 13,950 P 440,901 P P P P 5,114,985 P P 6,679,912 5,774,983 (601,704) (694,222) (451,402) (445,260) 4,759,277 5,160,592 (541,263) (665,313) 1,063,904 P (1,564,927) (674,536) 2,418,191 P (12,168,112) (9,321,600) 14,088,747 P 14,088,747 9,935,991 1,413,239 2,240,750 P 3,471,297 3,848,750 18,848,024 15,096,583 2,599,321 P 2,058,058 1,608,000 2,869,593 3,154,528 P P 471,220,813 P P 414,653,330 P 69,282,581 P P 43,584,546 P P P P P − − P – 2015 2015 8,799 979,412 20,199 966,574 P (809,969) P P P 4,487,142 6,412,545 (567,059) (357,864) 5,602,576 (651,534) 1,493,982 15,085,184 15,085,184 1,879,724 19,572,326 2,621,848 1,393,658 (13,159,781) P 3,273,382 2,446,783 P 2,263,984 59,108,627 P 467,656,059 526,826,963 P P P Financial Capital Markets and Investments Other Business and Support Units 104,004,670 P P P − Total P ects the income and share data used in the basic earnings per share computations: outstanding* (Note 22) *Weighted average number of outstanding common shares in 2014 and 2013 was recomputed after giving retroactive effect to stock to stock effect giving retroactive recomputed after was and 2013 number of outstanding common shares in 2014 average *Weighted (Note 22). dividends distributed in 2015 rights and stock a. Net income attributable equity to holders of the parent b. Weighted average number of common shares (a/b) EPS c. losses credit losses credit As of December 31, 2015, 2014 and 2013, there were no outstanding dilutive potential common shares. Before consideration of th no outstanding potential common shares. Before there were dilutive and 2013, 2014 2015, of December 31, As P were and 2013 2014 the EPS for dividends distributed in 2015, stock during the year (adjusted for stock dividends). stock (adjusted for during the year refl following The Basic EPS amounts are calculated by dividing the net income for the year by the weighted average number of common shares outsta average the weighted by the year dividing the net income for EPS amounts are calculated by Basic Intersegment Other operating income tax income before Income Total assets Total liabilities amortization and Depreciation Provision for impairment and credit expenditures Capital EARNINGS PER SHARE Total revenue Other operating expense Provision for income tax Capital expenditures expenditures Capital Results of Operations income interest Net party Third income Net Total assets Provision for income tax income Net Other operating expense tax income before Income Other operating income Total revenue Intersegment Total liabilities amortization and Depreciation Provision for impairment and Results of Operations income interest Net party Third 31. 31. 176 Annual Report 2015 34. 33. 32. IRS Currency forwards Bills payable Financial liabilities Net interestNet margin assets average on Return equity average on Return these arrangements aredisclosedinthesucceedingtable. posting requirements)for fi The amendmentstoPFRS 7requiretheGrouptodiscloseinformation aboutrightsofoffset andrelatedarrangements (such ascol OFFSETTING OFFINANCIAL ASSETS AND LIABILITIES The non-cashinvesting followingofcertain activitiesthatrelatetotheanalysisofcashfl isasummary ofthestatements NON-CASH INVESTING ACTIVITIES The following basicratiosmeasurethefi FINANCIAL PERFORMANCE IRS Currency forwards Financial assets Financial instruments end of reporting of end Addition to chattel mortgage from settlement of loans settlement from mortgage to chattel Addition Cumulative translation adjustment investment toequity Addition fi AFS in gain value Fair Addition to investment properties from settlement ofloans settlement from properties to investment Addition of loans settlement from mortgage to chattel Addition Cumulative translation adjustment investment toequity Addition fi AFS in gain value Fair Addition to investment properties from settlement ofloans settlement from properties to investment Addition period by type recognized at nancial instruments underanenforceable masternetting agreementsorsimilararrangements. The effects of amounts (before nancial assets nancial assets Gross carrying offsetting) P P a b c d [e] [d] [c] [b] [a] Notes toFinancialStatements P 0,6 P 109,265 P 1,8 P 116,889 047 0477232,6 2,987 20,267 7,243 30,497 − 30,497 446P 44,476 103P 11,053 ,2 −296296 − − 2,926 2,926 − 2,926 ,2 −764723 381 − 7,243 7,624 − 7,624 nancialperformance oftheGroupandParent Company: accordance with accordance Gross amounts 3.37% 9.62% the offsetting 1.17% 2015 offset in offset criteria osldtdParent Company Consolidated December 31, 2015 December −P −P −P −P .0 .8 .0 .0 2.94% 3.20% 3.20% 2.98% 3.30% .1 13%99%99%11.53% 9.90% 9.97% 11.31% 9.91% .2 .5 .1 .0 1.53% 1.30% 1.41% 1.45% 1.12% 0421 0521 2013 2014 2015 2013 2014 statements of presented in Net amount fi position nancial [a-b] 0,6 P 109,265 1,8 P 116,889 446P 44,476 103P 11,053 − − do not meet PAS offsetting 32 meet not do set-off (including rights to set set to rights (including set-off instruments Effects of remaining rights of of rights remaining of Effects off fi off Financial P P nancial collateral) that (464,471) (610,521) 960,332 112,056 257,851 295P 22,975 286P 12,806 (16,734) (14,914) P 019P 10,169 ,2 P 2,926 2,244 2015 criteria Consolidated Fair value of value Fair collateral fi nancial P ,8,8 P 1,485,082 P 8,7 P 581,479 6,1 P 561,212 9,5 P 498,255 8,5 (1,418,821) 188,354 0,5 (1,441,364) 202,452 4,2 − 145,028 4,2 − 145,028 8,8)131,858 (86,686) 8,1)131,858 (87,715) 29316,391 22,943 P ,1 P 7,817 042013 2014 −P −P ows: Net exposure [c-d] 106,339 106,720 504,758 419,629 2,987 9,810 lateral − 177 Annual Report 2015
− ent of 5,424 45,116 19,151 crued by by crued 22,492 54,236 105,593 474,759 110,572 107,892 662,694 P [c-d] 1,219,605 P Net exposure Net −P −P 343,073 P 338,097P nancial fi collateral Fair value of 541,857 P P 1,125,592 P P criteria Total remittancesTotal outstanding Amounts 12,974 P 22,663 P nancial collateral) that 5,351,371 P 5,328,708 P off fi Financial Effects of remaining rights of set-off (including rights set to do not meet PAS 32 offsetting instruments 120,866 P 133,235 P [a-b] 4,317,830 P 4,271,040 P nancial collateral both received and pledged, whether cash or non- and nancial collateral both received nancial position fi Net amount Net presented in presented statements of statements −P −P −P −P December 2014 31, nancial statements were authorized for issue by the Parent Company’s BOD on Company’s the Parent issue by for nancial statements authorized were ts 485,447 52,165 criteria offset in the offsettingthe Gross amounts Gross accordance with accordance 120,866 P 133,235 P [a] [b] [c] [d] [e] P 4,317,830P 4,271,040 P P offsetting) Gross carryingGross amounts (before amounts t tax t recognized at period by typeby period end of reporting Documentary stamps tax Local taxes Local Fringe benefi Others Balance at end of year Gross receipts tax Withholding taxes on compensation and benefi Expanded withholding taxes 98,288 8,312 Final withholding taxes Financial instruments Financial The amounts disclosed in column (d) include those rights to set-off amounts that are only enforceable and exercisable in the ev and exercisable amounts that are only enforceable amounts disclosed in column (d) include those rights to set-off The default, insolvency or bankruptcy. These include amounts related to fi include amounts These or bankruptcy. insolvency default, of over-collateralization. the extent cash collateral, excluding the Parent Company in 2015. Company the Parent The accompanying consolidated and parent company fi and parent company consolidated accompanying The 15-2010 REQUIRED UNDER RR NO. INFORMATION SUPPLEMENTARY are the details hereunder of percentage and other taxes paid or ac RR 15-2010, by In compliance with the requirements set forth APPROVAL OF THE FINANCIAL STATEMENTS THE OF APPROVAL 2016. 2, March Bills payableBills P Financial assetsFinancial forwardsCurrency P Currency forwards Currency IRS 12,974 − 12,974 12,974 − − 33,816− 33,816 9,689 4,976 19,151 Withholding Taxes and amounts outstanding as of Details of withholding taxes in 2015 of total remittances are as follows: December 31, 2015 IRS liabilitiesFinancial 12,369− 12,369 9,689 − 2,680 36. 36. 35. 35. 178 Annual Report 2015 Mary Ann E. Tiu E. Ann Mary Fax No.: Tel. Nos.: Asuncion St.,SanNicolas,Manila Units G6&G7ChinatownSteelTowers 734-4501/06 ASUNCION BRANCH 734-4497; 733-7704;733-8335 to40 Peña C. Flora Fax No.: Tel. Nos.: 675 Tomas MapuaSt.,Sta.Cruz,Manila Don FelipeBuilding ARRANQUE BRANCH Uy T. Arlene Fax No.: 731-2216; 732-4153; Tel. Nos.: Quezon City 420 AranetaAvenue, cor. BayaniSt. 410-6753 Philippine WhithascoBldg. 731-2179 ARANETA AVE. BRANCH Lopez S. Irene 655-8087 Tel. Nos.: Brgy. Mambugan,AntipoloCity, Rizal No. 219SumulongHighway BRANCH ANTIPOLO- SUMULONGHIGHWAY Achacoso N. Kristine Judy Fax No.: 695-1509 Tel. Nos.: Brgy. SanJose,AntipoloCity, Rizal No. 6,Provincial Road G/F BudgetLaneArcade ANTIPOLO CITYBRANCH Castillo S. Arnold 523-1215 Fax No.: 523-1216to19 Tel. Nos.: Bldg. 2Recto-SolerSts.Binondo,Manila Unit 3D-5;3D-7999ShoppingMall 999 MALLBRANCH Tan T. Shirley Fax Departments) (Private ExchangeConnectingAll Trunklines: 247-5388;8855-222 cor. JuanLunaSts.,Binondo,Manila CBC Bldg.,Dasmariñas BINONDO BUSINESSCENTER Auditor A. Marissa Fax Departments) (Private ExchangeConnectingAll Trunkline: 885-5555 cor. Sts.,MakatiCity Villar CBC Bldg.,8745PaseodeRoxas MAKATI MAINBRANCH(HO) Nos.: Nos.: 241-2352 733-3481 410-3026 650-2640 241-7058; 242-7225 892-0220;817-1325 241-2311/52/59/61 733-3477; 734-4777 731-2252;731-2261 632-7309; 632-7573 METRO MANILA 650-3277; 650-2087 Charity N. Santos N. Charity Fax Tel. Nos.: United BFHomes,ParañaqueCity Aguirre cor. ElGrandeAves. BF HOMESBRANCH Jacinto B. Flormina Fax 556-3470 Tel. Nos.: 128 DoñaSoledadAve., ParañaqueCity BETTER LIVINGSUBD.BRANCH Narvaez R. Glenn Fax 899-0685 Tel. Nos.: Makati City cor. MarsStreets, Bel-Air Village G/F Avant Building,48Jupiter BEL-AIR BRANCH Guzman De M. Raidis Fax 743-8967 Tel. Nos.: Quezon City G/F Prosperity Bldg.,BanaweSt. BANAWE- MA.CLARABRANCH Lara De S. Rodolfo Fax 416-7028/7030; Tel. Nos.: Sta. MesaHts.DistrictI,QuezonCity CBC Building,680BanaweAvenue BANAWE BRANCH 711-8694 Padua T. Sonny Fax 251-1182/86 Tel. Nos.: Balut, Tondo, Manila Honorio LopezBoulevard North BayShoppingCenter BALUT BRANCH Kho T. Vivian Fax 362-3660; Tel. Nos.: Balintawak, QuezonCity 657 A.BonifacioAvenue BALINTAWAK-BONIFACIO BRANCH 361-0450 Guillermo M. Lorela Fax Tel. Nos.: Ayala Avenue, MakatiCity G/F TheColumnsTower 3 AYALA-COLUMNS BRANCH Capacio G. Victoria Fax No.: 850-3785/9640/8888 Tel. Nos.: Ayala Alabang,MuntinlupaCity Madrigal BusinessPark G/F, CBC-BuildingAcaciaAve. AYALA-ALABANG BRANCH No.: No.: No.: No.: No.: No.: No.: No.: 825-5979 556-3470 890-4062 740-4864 743-7487 253-9917 361-0199 915-3672 850-8670 807-0673to74 825-6138/6891/6828 556-3467; 556-3468 897-2212;899-4186 732-1060; 740-4864 743-7486/88 253-9921/29; 253-9620 361-3449; 361-7825 915-3672to75 China BankBranches Tel. Nos.: Binangonan, Rizal National Highway, Bo.Tagpos BINANGONAN BRANCH Briones A. Minerva Tel. Nos.: Fort BonifacioGlobalCity, Taguig City G/F OneWorld Place,32ndAvenue BGC- ONEWORLDPLACEBRANCH P Heizel Fax Tel. Nos.: Las PiñasCity TalonBF ResortVillage Dos BF ResortDrivecor. GloriaDiazSt. BF RESORT VILLAGEBRANCH Bolivar E. Adelfa Maria Fax 659-3359/60; Tel. Nos.: BF Homes,ParañaqueCity Elsie GachesStreet Margarita Centre, Aguirre Ave. corner 556-5845 BF HOMES-AGUIRREBRANCH Joanna Leigh R. Gojar R. Leigh Joanna Fax Tel. Nos.: Old Balara,QuezonCity G/F 88DesignPro Building,CapitolHills CAPITOL HILLSBRANCH Rosario Del G. Donna Tel. Nos.: Felix Ave. (ImeldaAve.), Cainta,Rizal CBC Bldg(BesideSta.LuciaEastMall) CAINTA BRANCH V. Trinidad Redentor Jose Fax 997-8031 Tel. Nos.: Col. BonnySerranoAve., QuezonCity G/F Greenhills Garden Square, 297 BONNY SERRANOBRANCH Camacho D. Victorina Ana Fax Tel. Nos.: FirstSts.,Bo.Kapitolyo,PasigCity corner G/F P&EBuilding,12United BO. KAPITOLYO BRANCH P.Jose Jennet Fax Tel. Nos.: St., Blumentritt,Sta.Cruz,Manila LeonorRivera 1777-1781 Cavitecorner BLUMENTRITT BRANCH Guevarra W. Jennifer Fax No.: No.: No.: No.: No.: No.: No.: . Bautista . 873-4543 659-3359 952-7806 410-0677 634-7504 711-8541 646-0050 669-1530; 669-1659 869-6309;843-2448 873-4540to42 799-4707/4942 952-7776/7805/7804 646-0691/93; 645-9974 410-0677; 997-8043 634-8370/8915/3697 742-0254; 711-8589 682-1795 Tel. Nos.: Cubao, QuezonCity Ma. Anacleta B. Gloria B. Anacleta Ma. Fax Tel. Nos.: Quezon City Temple DriveBrgy. UgongNorte G/F TheClubhouse,CorinthianHills CORINTHIAN HILLSBRANCH Gojar R. Leigh Joanna Fax 351-8646 Tel. Nos.: Quezon City Congressional Ave., Project 8 G/F UnitCTheArete Square CONGRESSIONAL AVENUE BRANCH Caravana C. Karen Chinky Fax 431-5000/01 Tel. Nos.: Don AntonioRoad,QuezonCity Commonwealth Avenue corner Commonwealth Center LGF EverGotescoMall COMMONWEALTH AVENUE BRANCH Seng Yu U. Tennessy Fax Tel. Nos.: QuezonCity Clubhouse, DamarVillage, DAMAR VILLAGEBRANCH Cortez D. Jane Ella Fax Tel. Nos.: Sta. MesaHeights,QuezonCity 174 A-BD.Tuazon St.,Brgy. Maharlika D. TUAZONBRANCH P Mirian Fax Tel. Nos.: Brgy. Culiat,1128QuezonCity No. 419,Tandang SoraAve. G/F RoyalMidwayPlaza CULIAT-TANDANG SORABRANCH Panganiban A. Arthur 18 corner No. 287P. Tuazon Ave. near CUBAO- P. TUAZONBRANCH Valdivia D. Mateo Ramiro Fax 913-4675/76; Tel. Nos.: Miami Street, Cubao,QuezonCity 911 Aurora Boulevard Extensioncorner CUBAO-AURORA BRANCH 438-3830to32;911-2397 911-3524 Tongson C. Arnulfo Fax Tel. Nos.: Center, Cubao,QuezonCity Square St.,AranetaShopping Times Shopwise Arcade Building CUBAO-ARANETA BRANCH No.: No.: No.: No.: No.: No.: No.: No.: . Jose . 637-1905 351-8645 932-0822 367-5517 731-0592 288-2575 912-5167 911-2432 th 911-5896; 911-8416 637-3170/3180/1915 351-8648; 351-8645 932-0818/0820 442-3581; 367-5517 731-2516/2508 288-2575; 288-5114 912-5164/57 911-2369/70 Avenue, Brgy. SanRoque 179 Annual Report 2015 536-5971; 310-5122 726-1492; 727-4163 364-0515/35 528-4241; 536-1044 528-4241; 255-1204 255-1201/02; 247-3570/3795/3786 332-3858 to 60 723-0530/01 351-4359/5121 245-2548 245-2416; 723-0556; 725-9025 355-8665 536-1044 364-9864 255-1203 247-3795 332-3859 351-5121 245-2545 No.: No.: No.: No.: No.: Nos.: No.: No.: Fax KALOOKAN BRANCH 366-9457 Extension CBC Bldg., 167 Rizal Avenue Grace Park, Kalookan City Nos.: Tel. 364-9948; Fax Danilo T. Sarita 364-0717/31; 364-0494 Jefferson G. Ching INTRAMUROS BRANCH No. 409 A. Soriano Avenue Manila Intramuros, Nos.: Tel. Shirley L. Coquinco BRANCH J. ABAD SANTOS AVENUE 2159 J. Abad Santos Ave. Manila Batangas St., Tondo, cor. Nos.: Tel. Fax Josephine D. Paredes JUAN LUNA BRANCH G/F Aclem Building, 501 Juan Luna St. Binondo, Manila Nos.: Tel. 480-0211 Fax Mary Ann K. Abrigo BRANCH AVE. KALAYAAN G/F PPS Building, Kalayaan Avenue Quezon City Nos.: Tel. Fax Rowena C. Lagman GREENHILLS-ORTIGAS BRANCH GREENHILLS-ORTIGAS 14 Ortigas Avenue CBC-Building, Manila San Juan, Metro Greenhills, Nos.: Tel. 723-0502/04 Fax Jose RedentorTrinidadV. 412-5697 HEROES HILLS BRANCH corner J. Abad Santos Quezon Ave. Quezon City Hills, Heroes Street, Nos.: Tel. 411-3375; Fax Mirasol C. Ruiz SPIRIT DRIVE BRANCH HOLY Holy Spirit CBC Building Lot 18 Block 6 Drive, Don Antonio Heights Holy Spirit, Quezon City Brgy. No.: Tel. Edward Joseph C. Alava BRANCH ILAYA #947 APL-YSL Bldg. Manila Ilaya, Tondo, Nos.: Tel. 245-2557 Fax Street Street th 844-0688/90 727-9520; 724-5078 724-6173; 727-2798 807-2657 403-1558 844-0492/94 836-1405 836-1387; 721-3189 721-0543/56; 997-3455 997-3452; 775-0097/0126 815-1883/84/87 799-9072/9074 Avenue Fort Bonifacio Fort Avenue 844-0497 726-7661 836-1406 775-0322 th 856-4416 No.: No.: No.: No.: No.: Fax Fax Clara C. Sy GIL PUYAT AVENUE BRANCH AVENUE GIL PUYAT Mitsu Bldg., No. 65 Sen. Gil Puyat Ave. Palanan, Makati City Brgy. Nos.: Tel. Juvy CaguiatP. – ELIZABETH PLACE AVE. GIL PUYAT BRANCH G/F Elizabeth Place, Gil Puyat Ave. Makati City April 5, 2016 Opening Date: Lorella M. Guillermo 1 BRANCH GREENBELT near 1, Legaspi Street G/F Greenbelt corner Paseo de Roxas, Makati City Nos.: Tel. 836-1406 Fax Lorena M. Calpito GREENHILLS BRANCH G/F Gift Gate Bldg. Shopping Center Greenhills Manila San Juan, Metro Nos.: Tel. Maria MartaTheresa S. Suarez GREENHILLS-CONNECTICUT BRANCH Bldg. G/F Missouri Square Connecticut St. Missouri cor. Juan City San Northeast Greenhills, Nos.: Tel. FILINVEST CORPORATE CITY BRANCH FILINVEST CORPORATE G/F Wilcon Zapote road Depot, Alabang- Filinvest Corporate Ave., Bridgeway cor. Muntinlupa Alabang, City, Nos.: Tel. 842-1993/2198 Fax Mary Grace D.P. Macaraig FIVE E-COM CENTER BRANCH Harbor Drive G/F Five E-Com Center, MOA Complex, Pasay City Nos.: Tel. Charmaine V. Santos GLOBAL CITY BONIFACIO FORT BRANCH 26 G/F Marajo Tower, Shellane S. Salgatar Global City, Taguig City Taguig Global City, Nos.: Tel. 856-4416/4891/5196 Fax corner 4 China Bank Branches China 856-0434; 856-0433 937-8086;461-3004 759-5095; 759-5096 759-5095; 938-9636 937-5597; 741-9572/6209/6208/9565 376-3313/3314/3317/3318 244-6760; 244-6765 244-6760; 525-6477;536-7794 442-4338 to 40 441-5225 to 27 706-3491/3493/1979 706-3491/3493/1979 759-5096 937-8086 741-6207 376-3315 244-6760 525-8137 442-4339 441-5228 438-5531 No.: No.: No.: No.: No.: No.: No.: No.: No.: Fax Fax Anna Mercedes B. Flores Crislyn R. David BRANCH EVANGELISTA Sts. Evangelista corner Gen. Estrella Bangkal, Makati City Nos.: Tel. Sheijan A. Baladji BRANCH FAIRVIEW G/F Angelenix House, Fairview Ave. St., Quezon City corner Camaro Nos.: Tel. Gloria G. Mañosca BRANCH ESPAÑA Sts. España corner Valencia Sampaloc, Manila Nos.: Tel. Fax Jose Omar S.Yuan EXAMINER BRANCH Examiner St. cor. No. 1525 Quezon Ave. Quezon City Triangle, West Nos.: Tel. Fax Antonio J.Tan, Jr. ELCANO BRANCH Elcano Street G/F Elcano Tower, San Nicolas, Manila Nos.: Tel. 244-6779 Fax Gervie Roy S. Mendoza BRANCH ERMITA A, Ma. Natividad Bldg. Floor Ground Cortada Sts. M. Kalaw cor. #470 T. Ermita, Manila Nos.: Tel. 525-6544;523-0074 523-9862 Fax Ramiro A. Amanquiton EDSA-KALOOKAN BRANCH No. 531 (Lot 5 Block 30) Street EDSA near corner Biglang Awa Kalookan City Nos.: Tel. Fax Dolores L. ChuaTan Guat BRANCH EDSA-TIMOG AVE. G/F Richwell Corporate Center Heart Sacred 102 Timog Brgy. Ave., Quezon City Nos.: Tel. Fax EASTWOOD CITY BRANCH EASTWOOD Plaza One, Eastwood City Unit D, Techno Ave. Rodriguez Jr. Cyberpark, E. Quezon City (C-5) Bagumbayan, Nos.: Tel. 706-3320/3448 Fax 413-2118; 416-7791 916-8828; 871-2745 725-9641 (MCB) 416-3166; 722-5860 416-3166; 257-1512; 256-5292 257-1512; 571-8927 to 29 731-2535; 731-2571 731-2535; 654-3586 654-3607; 413-2826; 413-2825 413-2826; 247-1435 to 37 952-9678/9354 932-9477; 894-2392/93; 813-2958 894-2392/93; 361-1101 416-7791 726-2865 571-8927 247-1436 952-9344 894-2355 No.: No.: No.: No.: No.: No.: No.: Fax Fax Ana Ma. Raquel Y. Samala E. RODRIGUEZ SR. BLVD. BRANCH E. RODRIGUEZ SR. BLVD. Blvd. CBC Bldg., #286 E. Rodriguez Sr. Damayang Lagi, Quezon City Brgy. Nos.: Tel. 722-5893; Fax Rachel D. Umali MariaVirginia D. Longakit E. RODRIGUEZ- HILLCREST BRANCH Blvd. No. 402 E. Rodriguez Sr. Cubao, Quezon City Nos.: Tel. Fax E. RODRIGUEZ-CORDILLERA BRANCH No. 291 (G/F Units 285 & 287) Doña Josefa Blvd., Brgy. E. Rodriguez Sr. Quezon City Nos.: Tel. Richard Donelle O. Pareja Stella A. Lim E. RODRIGUEZ-ACROPOLIS BRANCH Building G/F Suncrest Quezon City Ave., E. Rodriguez Jr. Nos.: Tel. DEL MONTE-MATUTUM BRANCH DEL MONTE-MATUTUM near corner No. 202 Del Monte Avenue Quezon City Matutum St. Brgy St. Peter, Nos.: Tel. Wendy C.Tan DEL MONTE AVENUE BRANCH DEL MONTE AVENUE No. 497 Del Monte Ave. Quezon City Manresa, Bgry. Nos.: Tel. Lilibeth M. David Fax Mary Elizabeth Uy DON ANTONIO BRANCH Ave. G/F Royale Place, Don Antonio Old Balara, Quezon City Brgy. Nos.: Tel. Fax DIVISORIA-STA. ELENA BRANCH DIVISORIA-STA. Center New Divisoria Condominium Manila 632 Sta. Elena St., Binondo, Nos.: Tel. Ruth D. Holmes DASMARIÑAS VILLAGE BRANCH DASMARIÑAS Ext. Tamo 2283 Pasong Makati City corner Lumbang Street, Nos.: Tel. Fax 180 Annual Report 2015 Fax Tel. Nos.: Grace Park,KalookanCity No. 279RizalAvenue 8thAve. corner Norma C. Yanga C. Norma Fax No.: 521-7128 Tel. Nos.: San Nicolas,Manila No. 412Lavezares Street LAVEZARES BRANCH Jaca B. Jocylyn Fax No.: 871-0770 Tel. Nos.: Ave., PamplonaDos,LasPiñasCity Alabang-Zapote Roadcor. Philamlife LAS PIÑAS-MANUELABRANCH Adriano D. Myra Fax No.: Tel. Nos.: Las PiñasCity cor. AriesSt.,PamplonaParkSubd. CBC- Bldg.,Alabang-ZapoteRoad LAS PIÑASBRANCH Estrella R. Warlito Fax No.: 913-3226 Tel. Nos.: Brgy. St.Ignatius,QuezonCity CBC Building,No.121KatipunanAve. BRANCH KATIPUNAN AVE.-ST. IGNATIUS Arteche C. Rosa Fax No.: Tel. Nos.: Valenzuela City No. 248McArthurHighway, Karuhatan KARUHATAN BRANCH P.Arroyo Ann Mary Fax No.: 920-8770 Tel. Nos.: Quezon City Kasing-KasingStreetcorner G/F CRMBuildingII,116KamiasRoad KAMIAS BRANCH Rosario Del A. Teresa Maria Fax 921-3043 Tel. Nos.: 779 McArthurHighway, KalookanCity KALOOKAN- MONUMENTOBRANCH Timbang V. Albert Fax Tel. Nos.: Zabarte Road,KalookanCity Center, No.588CamarinRoadcorner Annex Bldg.SpaceNo.3,ZabarteTown KALOOKAN-CAMARIN BRANCH Baylon Chua- H. Ann Catherine KALOOKAN-8 No.: No.: No.: 287-0262 361-3270 442-6825 521-6978 871-0771 874-6414 913-5532 440-0033 920-5723 287-0001; 287-0262 521-6978; 521-7132 872-9801/9572/9533 874-6204; 874-6210 913-5532; 912-5003 291-0431/0175; 440-0033 433-6007; 920-7367 364-2571; 361-3270 442-6830; 442-7541 th AVE. BRANCH Gladys P Gladys Tel. Nos.: Makati City HonradezStreetsJP Rizalcorner MAKATI- JPRIZALBRANCH Prieto A. Zandro 802-2613/14/16 Tel. Nos.: Makati City No. 46JPRizalExt.,Brgy. Comembo MAKATI –COMEMBOBRANCH Libas A. Lourdes Emma Ma. G/F CBCBuilding, MAKATI AVENUE BRANCH Ela M. Monica Ma. Fax No.: 852-1290; Tel. Nos.: Makati City EDSA,MagallanesVillage corner G/F DHIBldg.,No.2Lapu-LapuAve. 852-1245 MAGALLANES VILLAGEBRANCH Yap O. Manuel Fax No.: 816-0905 759-2462; Tel. Nos.: MakatiCity Legaspi Village, G/F FedmanSuites,199SalcedoStreet LEGASPI VILLAGE-SALCEDOBRANCH 893-1503 Mendoza C. Noemi Fax No.: Tel. Nos.: MakatiCity Legaspi Village, G/F Greenbelt Mansion,106Perea St. LEGASPI VILLAGE-PEREABRANCH F.Cipriano Rosalie Ma. Fax No.: Tel. Nos.: MakatiCity Legaspi Village, 104 C.PalancaJr. Street Suite A,BasicPetroleum Building BRANCH LEGASPI VILLAGE-C.PALANCA 818-9649;894-5882to85 Rivera C. Luisa Ma. Fax No.: Tel. Nos.: MakatiCity Legaspi Village, 101 Aguirre cor. Trasierra Streets G/F Cacho-GonzalesBuilding LEGASPI VILLAGE-AIMBRANCH Tan T. Marissa Tel. Nos.: MakatiCity Legaspi Village, G/F CAPBldg.Herrera cor. AmorsoloSts. BRANCH LEGASPI VILLAGE-AMORSOLO Fax No.: Tel. Nos.: cor. Hercules St.,MakatiCity . Isidro . 852-1245 893-3746 893-2272 894-5868 818-0240 890-6975 815-6036to38 757-0272/0240 893-7680; 893-2618 893-2273/2272/2827 894-5915/18; 810-1464 818-8156; 818-0734 832-6871; 833-5668 890-6971to74 China BankBranches
Makati Ave. Fax No.: 445-3201; Tel. Nos.: Malanday, Valenzuela City CBC Bldg.McArthurHighway MALANDAY BRANCH 432-9785 Angeles Los De Y. Leslie Fax No.: 361-8671/7056 Tel. Nos.: Potrero, Malabon CBC Bldg.,McArthurHighway MALABON-POTRERO BRANCH Go A. Amy Fax No.: 352-1822; Tel. Nos.: Malabon City CBC Building,Gov. PascualAvenue MALABON-GOV. PASCUAL BRANCH 961-2147 Baradi M. Elenita Ma. Fax No.: 281-0293 Tel. Nos.: Concepcion, Malabon PaezStreetsGen. Lunacorner MALABON-CONCEPCION BRANCH Imelda F.Polenday Imelda Fax No.: 358-2138 Tel. Nos.: Marikina City Ave.Block 9,Lot14GilFernando MARIKINA-GIL FERNANDOBRANCH Yumul Z. Fernando Hector Fax No.: 998-1817; Tel. Nos.: Marikina City No. 809J.P. RizalAve., ConcepcionUno G/F E&LPatricioBuilding 948-6120 MARIKINA-FAIRLANE BRANCH Torio E. Joel Fax No.: Tel. Nos.: Sampaloc, Manila Daguman Bldg.,MacedaSt. MANILA-MACEDA BRANCH Malig V. Jane Marie Fax No.: 632-1399 Tel. Nos.: Pioneer Street, MandaluyongCity UG-05 GlobeTelecom PlazaTower I MANDALUYONG-PIONEER BRANCH Laforteza N. Marie Jose Fax No.: Tel. Nos.: San RafaelStreet MandaluyongCity G/F VOSBldg.BoniAvenue corner MANDALUYONG-BONI AVE. BRANCH Santos G. Gladiola Miguela 292-6956 448-0525 352-1822 281-0106 646-8032 997-0897 521-6644 746-6948 534-1968 432-9787;292-6956/57 448-0524/25 352-1816; 352-1817 281-0102/03/04/05 646-0780; 646-8032 997-0684; 997-0897 521-6644; 521-6643 746-6949; 635-4198 746-6283/85; 534-2289 Fax No.: 254-9335 Tel. Nos.: Sta. Cruz,Manila 1192 G.MasangkaySt. MASANGKAY-LUZON BRANCH Chan H. Jeannette Fax No.: Tel. Nos.: Binondo, Manila 959-961 G.MasangkayStreet MASANGKAY BRANCH Yuseco R. Linda Rosa Fax No.: 646-4279; Tel. Nos.: Marikina City 250 J.P. RizalStreet, Sta.Elena MARIKINA-STA. ELENABRANCH 646-1807 Ramos J. Nerissa Fax No.: 997-3343 Tel. Nos.: Concepcion Dos,MarikinaCity Lilac cor. RainbowSts.SSSVillage MARIKINA-SSS VILLAGEBRANCH Ma. Elenita M. Baradi M. Elenita Ma. Fax No.: Tel. Nos.: Boulevard North(NBBN),NavotasCity LacsonSt.,Brgy.near corner NorthBay No. 500M.NavalSt. NAVOTAS BRANCH Torralba A. Edna Fax No.: Tel. Nos.: cor. N.DomingoSts.,SanJuanCity G/F TheMainPlace,No.1Pinaglabanan N. DOMINGOBRANCH Cariño A. Carina Fax No.: Tel. Nos.: Brgy. Putatan,MuntinlupaCity G/F Teknikos Bldg.,NationalHighway MUNTINLUPA-PUTATAN BRANCH P Jean April Fax No.: Tel. Nos.: Bahay Toro, QuezonCity G/F LJCBuilding,189MindanaoAve. MINDANAO AVE. BRANCH Aurora S. Manuel Fax No.: Tel. Nos.: Brgy. DoñaImelda,QuezonCity AranetaAvenuecorner G/F MezzaResidences,Aurora Blvd. MEZZA RESIDENCESBRANCH Sy G. Teresita Fax No.: Tel. Nos.: Quezon City 561-B. MayonSt.,Brgy. N.S.Amoranto MAYON BRANCH Chua C. Gina 254-9974 244-1833 646-1807 942-0048 283-0752 470-2916 808-1819 277-4768 516-0765 731-2766 255-0739; 254-9974 244-1828/35/48/56/59 646-4281; 646-4277 948-5135; 941-7709 283-0752to54 470-2915 to17 511-0980; 808-1817 277-4768; 277-4782 516-0764to66 731-9054/2766; 741-2409 . Chiong . 181 Annual Report 2015 . Chiong 817-9337/47/51/60/82 531-6810 531-6929; 924-2872 927-9841; 813-4901/32/33 733-2052/59/61 650-1837 650-2230; 371-5133 to 35; 410-2160 869-3132 869-3128; 712-3676; 712-0424 712-3676; 817-9351 654-3079 929-3115 813-4933 733-6282 371-2765 712-3006 Joyce E. Gonzalez Joyce E. Gonzalez PASONG TAMO-CITYLAND BRANCH TAMO-CITYLAND PASONG Cityland Units UG30-UG32 Tower Pasong Tamo City St., Makati Tamo 2210 Pasong Nos.: Tel. No.: Fax Arnnie B. Alanano BRANCH PATEROS St. G/F Adela Building, M. Almeda San Roque, Pateros Brgy. Nos.: Tel. 654-3079 No.: Fax Ma. Renalyn B. Navarro PHILAM BRANCH #8 East Lawin Drive Philam Homes, QC Nos.: Tel. 929-5734 No.: Fax April Jean P SALCEDO VILLAGE-TORDESILLAS BRANCH Condominium G/F Prince Tower St., Salcedo Village 14 Tordesillas Makati City Nos.: Tel. 813-4944/52 No.: Fax Pamela Anita Y. Samala QUIAPO BRANCH 216-220 Villalobos St., Quiapo, Manila Nos.: Tel. 733-6282/86 No.: Fax Leslie C. So BRANCH RIZAL- SAN MATEO #63 Gen. Luna corner Simon St. Banaba, San Mateo, Rizal Nos.: Tel. Cynthia S. Memoracion 371-2766 BRANCH AVE. ROOSEVELT CBC Bldg., #293 Roosevelt Ave. San Francisco Del Monte, Quezon City Nos.: Tel. 410-1957; No.: Fax Eileen M. Felipe LEVISTE SALCEDO VILLAGE-L.P. BRANCH Unit 1-B G/F The Athenaeum San Agustin – LP Leviste St. Salcedo Village, Makati City Nos.: Tel. 869-3134 Pamela QUEZON AVE. BRANCH QUEZON AVE. 732-2137 No. 18 G & D Bldg., Quezon Ave. St., Q.C. D. Tuazon cor. Nos.: Tel. 416-8891; No.: Fax 740-7779/80; 712-1105 551-7159; 834-8978 551-7159; 551-7160 403-4820 to 22; 738-7591 997-2815 to 17 682-3474 646-0635; 706-3207 to 09 292-3215/3213/3216 551-9067 to 69; 833-5048 628-3912 642-3652; 628-0197/0209/0201 403-4821 646-0514 706-3208 444-8850 551-1768 4134 576- 628-0211 831-0306; 831-0498 BRANCH PASAY-LIBERTAD Street CBC-Building, 184 Libertad Pasay City Antonio Arnaiz Ave., Nos.: Tel. 831-0306; No.: Fax Ma. Letecia G. Milan BAGTIKAN BRANCH TAMO PASONG House, 1177 Chino G/F Trans-Phil City Bagtikan St., Makati cor. Roces Ave. Nos.: Tel. No.: Fax Lucy Hazel C. Povido Rosanna H. Malavega SAN JOAQUIN BRANCH PASIG- No. 43 M. Concepcion Ave. San Joaquin, Pasig City Nos.: Tel. Ma. JeanieV. Endonela 681-4575 BRANCH PASIG-SANTOLAN Amang Business Center, G/F Felmarc Santolan, Pasig City Rodriguez Avenue, Nos.: Tel. 682-3514; No.: Fax Joanaru B. Macalagay SUPERCENTER BRANCH PASIG-SM Pasig, Frontera G/F SM Supercenter Drive, C-5, Ortigas, Pasig City Nos.: Tel. No.: Fax Maria Norissa D. Mempin VERDE BRANCH VALLE PASIG G/F Reliance IT Center City Ugong, Pasig Ave., E. Rodriguez Jr. Nos.: Tel. 706-9242; 706-9243 April 5, 2016 Opened Date: Grace A. Cruz DE BLAS BRANCH PASO G/F CYT Bldg., No. 178 Paso de Blas City Valenzuela Nos.: Tel. No.: Fax Michelle C. Ang BRANCH BLVD. PASAY-ROXAS Towers GF Unit G-01 Antel Seaview 2626 Roxas Blvd., Pasay City Nos.: Tel. No.: Fax Ronaldo H. Francisco BRANCH RAYMUNDO PASIG-C. G/F MicMar Apartments No. 6353 C. Raymundo Avenue Rosario, Pasig City Brgy. Nos.: Tel. 628-3922 No.: Fax Tita C. Ibarria MERCEDES BRANCH PASIG- Motors Corp. Compound Commercial Pasig City Ave., Mercedes Nos.: Tel. No.: Fax el China Bank Branches China 638-4510; 638-4540 . Manimbo 846-9729; 846-9739 846-9729; 820-2044 820-8951/52; 561-6902; 561-6981 561-6902; 527-3202 526-0586; 526-6492; 536-6630/31/72 526-6492; 634-3469; 631-2772 634-3469; 638-4490 638-4489; 633-7960/70/53/54 638-4540 825-9517 561-6981 527-3202 536-6657 633-9039 633-7971 Fax No.: Fax
Carmina P BRANCH PARAÑAQUE-MOONWALK Avenue Armstrong St. cor. Milky Way Moonwalk, Parañaque City Nos.: Tel. 846-9771 Rica Judith S. Garcia BRANCH PARAÑAQUE-SUCAT No. 8260 (between AMA Computer A. Santos Avenue School and PLDT), Dr. Parañaque City San Isidro, Brgy. Nos.: Tel. 825-2501;804-3054 No.: Fax Evangeline S. Peñafi Josephine D. Paredes BRANCH PACO-OTIS G/F Union Motor Corporation Bldg. 1760 Dra. Paz Guazon St.,Paco, Manila Nos.: Tel. 564-2247 No.: Fax Ma.Victoria O. Rondilla BRANCH FAURA PADRE A. Mabini G/F Regal Shopping Center, Faura Sts., Ermita, Manila P. cor. Nos.: Tel. 527-7865 No.: Fax Grace N. Soriano BRANCH PACO Gen. Luna corner Escoda Street Paco, Manila Nos.: Tel. No.: Fax Susan V. Co – ANGEL LINAO BRANCH PACO Units 1636 & 1638 Angel Linao Street Paco, Manila Nos.: Tel. 242-2849; 242-3416 April 5, 2016 Opened Date: Virginia G. Go COMPLEX BRANCH ORTIGAS Road Ortigas Jr. G/F Padilla Building, F. Ortigas formerly Emerald Avenue, Pasig City. Center, Nos.: Tel. No.: Fax Christabel Ethel C. Gabriana DRIVE BRANCH ORTIGAS-JADE Unit G-03, Antel Global Corporate Jade Drive, Ortigas Center Center, Pasig City Nos.: Tel. ORTIGAS CENTER BRANCH ORTIGAS Condominium Chateau Unit 101 Parc Streets Onyx corner Sapphire Pasig City Ortigas Center, Nos.: Tel. 634-0178 No.: Fax 748-1808; 748-4426 748-1808; 521-6648; 521-6650 521-6648; 687-2457/58 733-8962 to 66; 735-5362 461-7691/94/98 247-6396 247-6374; 935-3049; 935-3491 935-3049; 936-3311 936-2202; 936-3512; 937-1133/35/36 936-3512; 655-8350 733-8964 687-2457 461-7691 247-6396 935-2130 936-2202 936-1037 Tita C. Ibarbia 655-7403; 655-8350 655-7403; No.: Fax Jossef Dennis Z.Timbol EXT.-RIVERSIDE AVE. ORTIGAS BRANCH Ortigas Unit 2-3 Riverside Arcade, Extension cornerAvenue Riverside Drive Sta. Lucia, Pasig City Brgy. Nos.: Tel. Josie T. Chua BRANCH AVE. ORTIGAS-ADB LGF City & Land Mega Plaza Garnet Rd. cor. ADB Ave. Pasig City Ortigas Center, Nos.: Tel. OROQUIETA BRANCH OROQUIETA St. 1225-1227, Oroquieta Sta. 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Roxas, Isabela Nos.: Tel. 376-0434 (078) 376-0422 Fax No.: Adeluiso (078) 642-0022 L. Cabugos DAGUPAN-PEREZ BRANCH DAGUPAN-PEREZ Boulevard Siapno Building, Perez Pangasinan Dagupan City, Nos.: Tel. Fax No.: (075) 522-2562 to 64 Marilyn (075) 522-8308 M. Domingo DOLORES BRANCH Dolores CBC Bldg., McArthur Highway, City of San Fernando, Pampanga Nos.: Tel. 860-1780/81 (045) 963-3413 to 15 Fax No.: Roberto (045) 963-1014 BasilioP. SAN NICOLAS ILOCOS NORTE- BRANCH 2 San Baltazar Brgy. National Highway, San Nicolas, Ilocos Norte Nos.: Tel. (077) 600-0994/95 Christianne Sophie C. Menrige IRIGA CITY BRANCH Highway 1, JP Rizal St., San Roque Camarines Sur Iriga City, Nos.: Tel. (054) 299-7000; 456-1498 Ma. Gracia B. Caramoan ISABELA-ILAGAN BRANCH G/F North Star Mall, Maharlika Highway Alibagu, Ilagan, Isabela Brgy. Nos.: Tel. Fax No.: (078) 323-0179/78 Donnabella (078) 323-0179 D. Castillo CAVITE-ROSARIO BRANCH CAVITE-ROSARIO Drive Gen Trias G/F CBC Building, Rosario, Cavite Nos.: Tel. Fax No.: to 59 (046) 437-0057 (046) 437-0058 Ma. Lorna A.Virata BRANCH CAVITE-SILANG CBC Building, J.P Rizal St. Poblacion, Silang, Cavite Nos.: Tel. 413-4826 (046) 413-5095; Ms. Menaline B. DAET BRANCH Norte Daet, Camarines Vinzons Avenue, Nos.: Tel. (054) 440-0066/67 Sheila DalupangF. 632-0583 DEL PILAR BRANCH DAGUPAN-M.H. Carried Realty Bldg., No. 28 M.H. del Pangasinan Dagupan City, Pilar Street Nos.: Tel. 632-0430; (075) 523-5606; 522-8929 Fax No.: Rommel (075) 523-5606 M. Agacita 475-3941 (Manila line) 584-4083 (Manila line) CAVITE-MOLINO BRANCH CAVITE-MOLINO Patio Jacinto, Molino Road Cavite Molino 3, Bacoor, No.: Tel. Fax No.:: (046) 431-0632 (046) 431-0901 Ryan M. Dela Peña Lucila R. Gacula CARMONA BRANCH CBC Building, Paseo de Carmona Maduya, Carmona, Cavite Brgy. Nos.: Tel. (046) 430-1969/1277/3568 Fax No.: Maria (046)430-1277 Victoria M. Molde CITY BRANCH CAUAYAN G/F Prince Christopher Bldg., Maharlika Isabela Cauayan City, Highway, Nos.: Tel. 652-0061 (078) 652-1849; 897-1338 Fax No.: Mary (078) 652-1849 Ann S. Gaspar BRANCH CAVITE-DASMARIÑAS G/F CBC Bldg., Gen. E. Aguinaldo Dasmariñas, Cavite Highway, Nos.: Tel. (046) 416-5036/39/40 Fax No.: Arlyn (046) 416-5036 G. Araña 471-7094 BRANCH CAVITE-IMUS G/F CBC Bldg., Nueno Avenue Luma, Imus, Cavite Tanzang Nos.: Tel. 471-2637; (046) 970-8726/64 Fax No.: Mario (046) 471-2637 E. Sayoc II CABANATUAN CITY BRANCH CABANATUAN Sanciangco Sts. Melencio cor. Nueva Ecija Cabanatuan City, Nos.: Tel. 600-4265 (044) Fax No.: Juanito (044) 463-0936 C. Santiago 463-0935 to 36 BRANCH CABANATUAN-MAHARLIKA CBC-Building, Maharlika Highway Nueva Ecija Cabanatuan City, Nos.: Tel. 463-7964;600-3590 (044) 463-8586/87 940-2395 Fax No.: Mary (044) 463-8587 Ann R.Tagle CITY BRANCH CALAPAN Rizal St., San Vicente, Calapan City J.P. Oriental Mindoro Nos.: Tel. 441-0382 (043) 288-8978/8508 Fax No.: Ruel (043) 441-0382 A. Añonuevo CANDON CITY BRANCH CBC Building, National Road, Poblacion Ilocos Sur Candon City, Nos.: Tel. (077) 674-0574/54 China Bank Branches China Karen S. Mendoza Elvira L. Maliksi BRANCH BULACAN-BALAGTAS San Juan Brgy. Mac Arthur Highway, Balagtas, Bulacan Nos.: Tel. (044) 769-4376; 769-0359 Ma. Consolacion Santos BULACAN-PLARIDEL BRANCH Road CBC Building, Cagayan Valley Plaridel, Bulacan Nos.: Tel. Fax No.: (044) 931-2332;325-0069 Magdalena (044) 931-2293 S. Ignacio MARIA BRANCH BULACAN-STA. J.P Rizal corner C. de Guzman St. Poblacion, Sta. Maria, Bulacan Nos.: Tel. 913-0334 (044) 288-2006; 815-2951 Fax No.: (044) 288-2006 BATANGAS-LEMERY BRANCH BATANGAS-LEMERY Avenue Miranda Building, Ilustre Batangas Lemery, Nos.: Tel. (043) 409-3467; 984-0206 (Manila line) Enrique M. Padua BRANCH BATANGAS-ROSARIO Namunga Brgy. Gualberto Ave., Dr. Rosario, Batangas Nos.: Tel. (043) 312-3748; 312-3776 Lorellie S. Garcia BRANCH BATANGAS-TANAUAN City Tanauan Highway, Laurel J.P. Batangas Nos.: (043) 702-8956/57 Tel. Janet R. De Castro CITY BRANCH BATANGAS Batangas City Burgos Street, P. Nos.: Tel. (043) 723-0953 Fax No.: Maricel 520-6118; (043) 402-9157 R. Alcantara BRANCH (Manila line) 520-6118 BATANGAS-BAUAN 62 Kapitan Ponso St., Bauan, Batangas Nos.: Tel. Fax No.: (043) 702-4481; 702-5383 Ruvishella (043) 702-4481 S. Bicol BALANGA CITY BRANCH BALANGA CITY Don Manuel Banzon G/F Dilig Building, Bataan City, Balanga Street, Nos.: Tel. 791-1779 (047) 237-9388/89 Fax No.: (047) 791-1779 Arnel S. Guzman BALER BRANCH Road, Barrio Suklayain Provincial Aurora Baler, Nos.: Tel. Fax No.: line) 703-3331 (manila Renato (042) 724-0026 DelP. Rosario, Jr. BRANCH BALIWAG (DRT) Km. 51, Doña Remedios Trinidad Bulacan Baliwag, Highway, Nos.: Tel. 673-5338 (044) 766-1066/5257 Fax No.: (044) 766-5257 PROVINCIAL BRANCHES-LUZON PROVINCIAL Edward U. Catipon Mary Anne A.Tiwaquen BRANCH BAGUIO CITY-ABANAO G/F Paladin Hotel, No. 136 Abanao Ext. Benguet corner Cariño St., Baguio City, Nos.: Tel. Fax No.: (074) 424-4837/38 (074) 424-4838 Nancy T. Mensalvas 442-9663 BAGUIO CITY BRANCH G/F Juniper Bldg., A. Bonifacio Rd. Benguet Baguio City, Nos.: Tel. 443-8659/60; (074) 442-9581; 443-5908 Fax No.: (074) 442-9663 APALIT BRANCH APALIT CBC Building, McArthur Highway San Vicente, Apalit, Pampanga Nos.: Tel. Fax No.: (045) 652-1131 (045) 302-9560 Joselito M. Datu ANGELES-STO. ROSARIO BRANCH Angeles Business Center Bldg. Nepo Mart Complex Avenue, Teresa Pampanga Angeles City, Nos.: Tel. Fax No.: (045) 888-5175; 322-9596 (045) 888-5175 Maria Josefa R. Nisce ANGELES-MCARTHUR HIGHWAY HIGHWAY ANGELES-MCARTHUR BRANCH CBC Bldg. San Pablo St. corner Angeles City Mc Arthur Highway, Pampanga Nos.: Tel. 625-9362 (045) 323-5793; 887-6028 Fax No.: (045) 887-6029 Yalda Y. Ocampo ANGELES CITY-MARQUEE MALL ANGELES CITY-MARQUEE BRANCH Mall, Angeles City G/F Marquee Pampanga Nos.: Tel. 889-0975 (045) 436-4013; 304-0850 Fax No.: (045) 304-0850 Rean S. Bernarte ANGELES CITY- BALIBAGO BRANCH ANGELES CITY- McArthur Service Road Diamond Square, Charlotte St., Balibago Highway cor. Pampanga Angeles City, Nos.: Tel. Fax No.: 892-5144 (045) 892-5136; (045) 892-5144 Luzviminda Grace M. Santos ANGELES CITY BRANCH ANGELES CITY St. CBC-Building, 949 Henson Pampanga Angeles City, Nos.: Tel. 887-1550/2291 323-5343 (045) 887-1549; 625-8660/61 Fax No.: (045) 625-8661 184 Annual Report 2015 Marcialito B. Ancheta B. (077)772-1035 Marcialito Fax No.: (077)772-1024/27 771-4688; Tel. Nos.: San Francisco,LaoagCity, IlocosNorte Liberato AbadillaStreet, Brgy17 LAOAG CITYBRANCH 771-4417 Olavere B. Antonio Erlan (049)501-4107 Fax No.: 501-4085 (049)501-4977;501-4107 Tel. Nos.: A. RegidorSt.,Sta.Cruz,Laguna LAGUNA-STA. CRUZBRANCH Liamson A. Estela (049)545-7138 Fax No.: (049)545-7134to38 Tel. Nos.: Crossing, Calamba,Laguna CBC-Building, NationalHighway LAGUNA-CALAMBA BRANCH Rosario Del S. Regina Anna (049)544-2287(telefax) Fax No.: (049)544-2287/89 Tel. Nos.: G/F Centro Mall,CabuyaoCity, Laguna LAGUNA-CABUYAO BRANCH Medina C. Eldo Mr. (049) 245-0440(Manilaline) Tel. Nos.: Biñan, Laguna National Highway, Brgy. SanVicente G/F RajaCordelle Bldg. 511-3196 LAGUNA-BIÑAN BRANCH Rimando G. (072)607-8934 Fenalyn (072)607-8931to34 Fax No.: Tel. Nos.: LaUnion San Fernando, National Highway, Brgy. 3 Roger PuaPheeBuilding LA UNION-SANFERNANDOBRANCH Jr. Carantoza, G. Mariano Tel. Nos.:(072)682-0350 Agoo, LaUnion National Highway, SanJoseNorte LA UNION-AGOOBRANCH Serrano L. (074)422-2065 Liza Fax No.: (074)422-2065/2590 309-1663 Tel. Nos.: Km. 4,LaTrinidad, Benguet G/FSJVBulasaoBuilding LA TRINIDADBRANCH Masbang D. (045)458-1043 Nikita Fax No.: (045)458-1043 458-1045/46 Tel. Nos.: Guagua, Pampanga Yabut Building,PlazaBurgos GUAGUA BRANCH Driz C. (044)486-0434 Medel Fax No.: (044)486-0217;486-0434 486-0695 Tel. Nos.: Gapan, NuevaEcija Maharlika Highway, Brgy. Bayanihan G/F Waltermart Center-Gapan GAPAN BRANCH a o: 429-1813(Manilaline) Fax No.: 214-3077 (052)480-6048;480-6519 Tel. Nos.: Legazpi City, Albay G/F EmmaChanBldg.,F. ImperialSt. LEGAZPI CITYBRANCH Gary D. Tabora D. Gary (043) 491-0095/96 Tel. Nos.: San Jose,OccidentalMindoro Liboro RizalStreet corner OCC. MINDORO-SANJOSEBRANCH P.Esteban (044)333-6215 Teresita (044)333-6215;940-1407 Fax No.: Tel. Nos.: Poblacion, Sta.Rosa,NuevaEcija CBC Building,MaharlikaHighway NUEVA ECIJA-STA. ROSABRANCH Jr. Altea, A. 250-8169(Manilaline) Glenn 473-7920 Fax No.: (054)472-1359/58 Tel. Nos.: Naga City, CamarinesSur Centro- PeñafranciaStreet NAGA CITYBRANCH Jr. Alhambra, S. Oscar (044)815-6961 Fax No.: (044)815-6889;815-6961 815-6958 Tel. Nos.: Meycauayan, Bulacan CBC Building,MalhacanRoad MEYCAUAYAN BRANCH Torrevillas C. (056)333-2365 Ernie (056)333-2363/65 Fax No.: Tel. Nos.: Masbate City, Masbate Espinosa Bldg.,ZurbitoSt. MASBATE BRANCH Go B. (044)815-8956 Marites (044)815-8956/57 Fax No.: Tel. Nos.: Km. 21,Brgy. Ibayo,Marilao,Bulacan G/F, SMCityMarilao MARILAO BRANCH F.Bulaong (044)794-5840 Rosemarie (044)794-5840;662-2013 Fax No.: Tel. Nos.: Malolos City, Bulacan McArthur Highway, Guinhawa G/F GracelandMall,BSUGrounds MALOLOS CITYBRANCH Malinit L. (045)892-6040 Lea (045)892-4969;892-6040 Fax No.: Tel. Nos.: Dau, Mabalacat,Pampanga R.D. PolicarpioBldg.,McArthurHighway MABALACAT-DAU BRANCH Miralles V. (042)373-3879 Rossana Fax No.: (042)373-2317 373-3872/80/87; Tel. Nos.: Lucena City, Quezon 233 QuezonAvenue LUCENA CITYBRANCH 660-7861 Barra Y. Katherine China BankBranches a o: (075)656-2618 Fax No.: (075)632-2637;632-0541 656-2022; Tel. Nos.: Poblacion Urdaneta City, Pangasinan EF Square Bldg.,McArthurHighway PANGASINAN-URDANETA BRANCH 656-2618 Anonas N. Glenda (075)633-3852/53 Tel. Nos.: Rosales, Pangasinan CBC Building,CalleDewey PANGASINAN-ROSALES BRANCH Jr. Jimenez, C. (075)632-5776 Miguel (075)632-5776/75 Fax No.: Tel. Nos.: Bayambang, Pangasinan CBC Building,No.91,PoblacionSur BRANCH PANGASINAN- BAYAMBANG Viado D. (075)654-0296 Edwin (075)551-3859;654-0286 Fax No.: Tel. Nos.: Alaminos City, Pangasinan Marcos Avenue, Brgy. Palamis BRANCH PANGASINAN-ALAMINOS CITY Oscar B. Villavicencio B. (049)562-5485 Oscar (049)562-5481 to84 Fax No.: Tel. Nos.: Laguna M. PaulinoStreet, SanPabloCity SAN PABLO CITYBRANCH 511-2898 Cariño D. (044)958-9094 Josephine Fax No.: (044)958-9094/96 Tel. Nos.: San JoseCity, NuevaEcija Maharlika Highway, Brgy. Malasin SAN JOSECITYBRANCH Arepentido Armando (045)861-3081 (045)866-5464;455-0569 Fax No.: Tel. Nos.: City,San Fernando Pampanga Jumbo JenraSindalan,Brgy. Sindalan 963-5458to60 SAN FERNANDO-SINDALANBRANCH (045)961-8352 Gina K.Reyes Fax No.: (045)961-3542 Tel. Nos.: City,San Fernando Pampanga CBC Bldg.,V. Street Tiomico SAN FERNANDOBRANCH 420-8042(Manilaline) Reta A. 420-8042(Manilaline) Gerald Fax No.: (049)837-1831;502-3016 Tel. Nos.: Sta. RosaCity, Laguna Unit 3,Paseo5,deSta.Rosa PASEO DESTA. ROSA BRANCH Anonas N. Glenda 502-2859; 827-8178 a o: (043)784-0212 (043)784-0212/13 Fax No.: Tel. Nos.: Lipa City, Batangas Ayala Highway, Brgy. Maraouy G/F (Units1111-1113)SMCityLipa SM CITYLIPA BRANCH a o: (046)424-1133 (046)424-1134 Fax No.: Tel. Nos.: Drive, Pala-pala,Dasmariñas,Cavite LGF SMCityDasmariñas,Governor’s SM CITYDASMARIÑASBRANCH Leon De R. (045)499-0254 Roderick (045)499-0252to54 Fax No.: Tel. Nos.: Pampanga M. RoxasSt.,CSEZ,AngelesCity G/F (Units172-173)SMCityClark SM CITYCLARKBRANCH Montesa M. (046)417-0583 Elvira Fax No.: 417-0623/0645 (046)417-0572/0746 Tel. Nos.: Bacoor, Cavite AguinaldoHighway corner LGF SMCityBacoor, Highway Tirona SM CITYBACOORBRANCH F.Ilarde Rafael (078)305-2445 (078)682-7024to26 Fax No.: Tel. Nos.: BayauaSt.,SantiagoCity,corner Isabela Navarro Bldg.,MaharlikaHighwaynear SANTIAGO CITYBRANCH Maria Victoria A. Reyes A. Victoria (049)521-0072 Maria Fax No.: (049)521-0071to72 Tel. Nos.: San PabloCity, Laguna National Highway, Brgy. SanRafael G/F SMCitySanPablo SM CITYSANPABLO BRANCH Ausen De R. (045)455-0307 Rosario (045)455-0304to07 Fax No.: Tel. Nos.: Pampanga, Mexico,Pampanga Unit AX3102,Building4,SMCity SM CITYPAMPANGA BRANCH Lee D. (047)602-0038 Edelmar (047)602-0039/40 Fax No.: Tel. Nos.: Olongapo City, Zambales cor. Gordon Ave., Brgy. Pag-asa SM CityOlongapo,MagsaysayDrive SM CITYOLONGAPOBRANCH Guzman F.De 250-8183(ManilaLine) Rhoderick (054)472-1366/67 Fax No.: Tel. Nos.: Naga City, CamarinesSur SM CityNaga,CBDII,Brgy. Triangulo SM CITYNAGABRANCH Jr. Nario, L. Jose Jardiniano T. Evelyn
185 Annual Report 2015
3764 266-7093 . Mayol Marcos Ronald L.Villahermosa Edgardo A. Olalo RAMOS BRANCH CEBU-F. Cebu Cebu City, Ramos Street, F. Nos.: Tel. 412-5858 (032) 253-9463; 254-4867 Fax No.: Alan (032) 253-9461 Y. Go CEBU-GORORDO BRANCH Bo. Camputhaw Ave., No 424. Gorordo Cebu Lahug District, Cebu City, Nos.: Tel. Fax No.: (032) 414-0509; 239-8654 Richard (032) 239-8654 Alexander T. Lim CEBU-GUADALUPE BRANCH Street CBC Building, M. Velez Cebu City Guadalupe, Rama Ave., V. cor. Nos.: Tel. 254-1916 (032) 254-7964; 254-8495 Fax No.: Angie (032) 032-416-5988 G. Divinagracia BRANCH CEBU-IT PARK G/F The Link, Cebu IT Park Cebu Apas, Cebu City, Nos.: Tel. 262-0982 (032) 266-2559 Fax No.: (032) 266-2559 Odelon C. Logarta CEBU-LAHUG BRANCH Mall, No. 1 Salinas Drive JY Square Cebu Lahug, Cebu City, Nos.: Tel. 234-2062 (032) 417-2122; 233-0977 Fax No.:: (032) 234-2062 CEBU BUSINESS CENTER CEBU BUSINESS Loop cornerCBC Bldg., Samar Business Park Panay Road, Cebu Cebu Cebu City, Nos.: Tel. to 239- (032) 239-3760 Fax No.: Victor (032) 238-1438 P CEBU- CARCAR BRANCH Jose Rizal St., Poblacion I Dr. Cebu Carcar, Nos.: Tel. 487-8209 (032)487-8103; Fax No.: 487-8103 (032) Mary Ann C. Rio Mary Jayne D. Caballero CEBU-ESCARIO BRANCH Units 3 & 5 Escario Central Cebu Escario Road, Cebu City, Nos.: Tel. Fax No.: (032) 416-5860; 520-9229 (032) 520-9229 CEBU-CONSOLACION BRANCH G/F SM City Consolacion Lamac, Consolacion, Cebu Brgy. Nos.: Tel. Fax No.: (032) 260-0024; 260-0025 (032) 423-9253 Zephyrus C. Celis CEBU- BOGO BRANCH Rodriguez Street Sim Building, P. Cebu Bogo City, Nos.: Tel. Fax No.: (032) 434-7119; 266-3251 Mylen (032) 434-7119 D. Comahig Henedina M. Afable BRANCH CATARMAN Rizal St. Rizal & Quirino Sts., Jose P. Cor. Catarman, Northern, Samar Nos.: Tel. (055)251-8802/8821 500-9921 Fax No.: (055) 500-9921 Victorino T. Caparroso, Jr. BRANCH CATBALOGAN CBC Bldg. Del Rosario St. cor. Samar Catbalogan City, Avenue, Taft Nos.: Tel. (055) 251-2897/98 543-8121 Fax No.: (055) 543-8279 Paul C. Oliva BRANCH CEBU-BANAWA G/F The J Block, Duterte St., Banawa Cebu Guadalupe, Cebu City, Nos.: Tel. (032) 340-9561; 416-3827 Sheryll MarieTiuV. CEBU-BANILAD BRANCH CBC Bldg., AS Fortuna St., Banilad Cebu Cebu City, Nos.: Tel. 416-1001 (032) 346-5870/81 Fax No.: Jouzl (032) 344-0087 Marie C. Roña CEBU-BASAK-SAN NICOLAS BRANCH Basak San Nicolas N. Bacalso Ave. Cebu Cebu City, Nos.: Tel. (032) 340-8113; 414-4742 BACOLOD-MANDALAGAN BRANCH BACOLOD-MANDALAGAN Mandalagan Lacson Street, Occidental Negros Bacolod City, Nos.: Tel. 709-0067 441-0388 (034) 441-0500; Fax No.: G (034) 709-0067 Romulo LopezF. DRIVE BRANCH BACOLOD-NORTH Anesa Bldg., B.S. Aquino Drive Occidental Negros Bacolod City, Nos.: Tel. 709-1658 to 65 (034) 435-0063 Fax No.: G (034) 435-0065 Romulo LopezF. BRANCH BAYBAY Leyte Baybay, Magsaysay Avenue, Nos.: Tel. 563-9228 (053) 335-2899/98 Fax No.: Jose (053) 563-9228 Alvin SumalinogP. BORONGAN BRANCH Balud II, Poblacion, Borongan Eastern Samar Nos.: Tel. 261-5888 (055) 560-9948; 560-9938 Fax No.: (055) 560 9938 n China Bank Branches China PROVINCIAL BRANCHES-VISAYAS BACOLOD-ARANETA BRANCH BACOLOD-ARANETA CBC-Building, Araneta corner 709-1618 San Sebastian Streets Occidental Negros Bacolod City, Nos.: Tel. 433-3818/19 (034) 435-0247/48 433-7152/53; Fax No.: Michelle (034) 435-0247 Lorei R. Gayoma BRANCH BACOLOD-LIBERTAD Bacolod City Libertad Street, Occidental Negros Nos.: Tel. Fax No.: (034) 435-1645/46 Maria (034) 435-1645 Ruema S. Quimba VIGAN CITY BRANCH near corner Rizal Street Burgos Street Ilocos Sur Vigan City, Nos.: Tel. (077) 722-6968, 674-2272 Fax No.: (077) 722-6948 Maria R. Pelayo ANTIQUE-SAN JOSE BRANCH Building, Gen. Fullon St. corner Felrosa St., San Jose, Antique Cerdena Nos.: Tel. Fax No.: (036) 540-7095; 540-7097 Anna (036) 540-7096 Marie B. Sentina Lhovina A. Delfi TUGUEGARAO CITY BRANCH A. Bonifacio Street Cagayan Tuguegarao, Nos.: Tel. 846-1709 (078) 844-0175; 844-0831 Fax No.: Laura (078) 844-0836 L. Utleg TUGUEGARAO- BALZAIN BRANCH Balzain Highway Cagayan City, Tuguegarao Nos.: Tel. Fax No.: (078) 396-2207/08 (078) 396-2207 Shirly Leocel A. Narag Maximo B. Mendoza, Jr. THE DISTRICT IMUS BRANCH II G/F The District Imus, Anabu Imus, Cavite Nos.: Tel. Fax No.: 416-4294 (046) 416-1417; Divina (046) 416-4212 (telefax) S. Ramos BRANCH TRECE MARTIRES Drive Governor’s G/F Waltermart, San Agustin corner Hall Road, Brgy. City Cavite City, Martires Trece Nos.: Tel. Fax No.: (046) 460-4897 to 99 (046) 460-4898 TARLAC-PANIQUI BRANCH TARLAC-PANIQUI M. H del Pilar St. Cedasco Building, Tarlac Poblacion, Paniqui, Nos.: Tel. Fax No.: 491-8464 (045) 491-8465; 491-8465 (045) (046) 483-0609/08 Abigail B. Garcia Gary V. Eugenio BRANCH TARLAC-CONCEPCION Timbol St. G/F Descanzo Bldg., F. San Nicolas Poblacion, Concepcion, Tarlac Nos.: Tel. Fax No.: (045) 491-2987; 491-3028 (045) 491-3113 Perla S. Aquino BRANCH TARLAC-CAMILING Savewise Super Market, Poblacion Camiling, Tarlac Nos.: Tel. 934-5086 (045) 491-6445; 934-5085 Fax No.: (045) 934-5085 TARLAC BRANCH TARLAC CBC Building, Panganiban near corner Tarlac City, Tarlac Street, Tanedo F. Nos.: Tel. Fax No.: (045) 982-7771 to 75 (045) 982-7772 Edwin Q. Manuel, Jr. Paula Minette M. Dy BRANCH TALAVERA District CBC Building, Marcos Nueva Ecija Talavera, Nos.: Tel. Fax No.: (044) 940-2620/21 (044) 940-2620 Fax No.: 529-8174 (Manila Line) Geoffrey E. Lim CITY BRANCH TAGAYTAY Plaza Tagaytay Olivarez Silang Crossing E. Aguinaldo Highway, Cavite City, Tagaytay Nos.: Tel. 529-8174 (Manila Line) TABACO CITY BRANCH TABACO Street corner Berces Ziga Ave. Albay City, Tabaco Nos.: Tel. Fax No.: (052) 487-7150; 830-4178 429-1811 (Manila line) Renato S. Cunanan SUBIC BAY FREEPORT ZONE BRANCH FREEPORT SUBIC BAY CBC Building., Subic Bay Gateway Park Zone Freeport Subic Bay Rizal Highway, Nos.: Tel. 252-1591 (047) 252-1568; 252-1575 Fax No.: (047) 252-1575 Arthur B. Falcotelo Stephen Richard D.Wallis SORSOGON BRANCH Ave. CBC Bldg., Ramon Magsaysay Sorsogon Sorsogon City, Nos.: Tel. Fax No.: 421-5105 (056) 211-1610; 429-1124 (Manila Line) SOLANO BRANCH Quirino National Highway Brgy. Solano, Nueva Vizcaya Nos.: Tel. Fax No.: to 61 (078) 326-6559 (078) 326-6561 Antonio C. Manilay SM CITY STA. ROSA BRANCH ROSA SM CITY STA. Rosa, Bo. Tagapo G/F SM City Sta. Sta. Rosa, Laguna Nos.: Tel. Fax No.: (049) 534-4640/4813 901-1632 (Manila line) 186 Annual Report 2015 Sheila R. Pastor R. Sheila (032)238-7623 Tel. Nos.: East Poblacion,NagaCity, Cebu Leah’s Square, NationalSouthHighway CEBU-NAGA BRANCH Obiña T. (032)239-7235 Christine (032)239-7234;490-6025 Fax No.: Tel. Nos.: Minglanilla, Cebu Unit 9,PlazaMargaritaLipata CEBU-MINGLANILLA BRANCH Sy R. (032)420-6767 Ferdinand Fax No.: (032)345-8861;345-8862 420-6767 Tel. Nos.: Cebu Building (Kel-2)Basak,MandaueCity G/F UnitsG1-G3,BasakCommercial BRANCH CEBU-MANDAUE NORTH ROAD Lim O. (032)520-2898 Mariza (032)520-2898;421-1567 Fax No.: Tel. Nos.: Mandaue City, Cebu LGF JCentre Mall,A.SFortunaAve. BRANCH CEBU-MANDAUE-J CENTREMALL Umbay G. (032)421-1364 Ruel (032)421-1364;505-9908 Fax No.: Tel. Nos.: Mandaue City, Cebu M.L. QuezonSt.,Cabancalan BRANCH CEBU-MANDAUE-CABANCALAN Macaraig S. (032)346-2083 Marissa Fax No.: 422-8188 (032)346-5636/37 346-2083; Tel. Nos.: Mandaue City, Cebu Street, Brgy. Centro SV CabahugBuilding,155-BSB 344-4335 CEBU-MANDAUE BRANCH Tang Y. (032)255-0026 Susan Fax No.: (032)255-0022/23/25/28 Tel. Nos.: JakosalemSts.,CebuCity,corner Cebu CBC Bldg.,Magallanes CEBU-MAGALLANES BRANCH(MAIN) Dañosos Y. Joseph (032)231-3247;493-5078 Tel. Nos.: Lapu City, Cebu St.,Opon,Poblacion G.Y delaSerna CEBU-LAPU LAPUCENTROBRANCH Alvez R. Faith (032)340-2098/494-0631 Mary Fax No.: (032)340-2098;494-0631 340-2099 Tel. Nos.: Lapu-Lapu City, Cebu National Highway, Pusok G/F GoldberrySuites,President Quezon CEBU-LAPU LAPU-PUSOKBRANCH 412-1877 255-0266; 253-0348;255-6093 a o: (032)232-1448 Fax No.: (032)232-0754/55 231-9140; Tel. Nos.: cor. A.SorianoAvenue, CebuCity, Cebu Upper G/F, SMCityCebu, JuanLuna CEBU-SM CITYBRANCH 412-9699 Joseph C. Chong C. Joseph (033)503-2955 (033)320-3738;320-3791 Fax No.: Tel. Nos.: Jaro, IloiloCity, Iloilo CBC Building,E.LopezSt. ILOILO-JARO BRANCH Mangilin C. (033)337-9566 Marjorie Fax No.: 300-0644 (033)337-9477;509-9868 Tel. Nos.: Iloilo City, Iloilo G/F JohnA.Tan Bldg.,IznartSt. ILOILO-IZNART BRANCH Tan T. Ariel Ross (034)471-3349;471-3364 471-3738 Tel. Nos.: Brgy. 1,Kabankalan,Negros Occidental CBC Building,NationalHighway NEGROS OCC.-KABANKALANBRANCH Pantino C. Gail (035)422-5442 Iris Fax No.: 225-5460 (035)422-8058;225-5442 225-5441; Tel. Nos.: Negros Oriental CBC Bldg.,RealStreet DumagueteCity DUMAGUETE CITYBRANCH 225-4284 Faytone T. (032)272-3346 Rosie Fax No.: (032)272-3342/48 491-8200 Tel. Nos.: Road, Bulacao,Talisay City, Cebu CBC Bldg.,1055CebuSouthNational CEBU-TALISAY BRANCH Aguilar A. (032)236-8944 Ronnie (032)236-8944;418-0796 Fax No.: Tel. Nos.: Brgy. Talamban, CebuCity, Cebu Unit UG-7GaisanoGrandMall CEBU-TALAMBAN BRANCH Onrejas L. Rose Sharon (032)344-6621 Fax No.: 344-6621 (032)344-6561;422-3664 Tel. Nos.: Subangdaku, MandaueCity, Cebu G/F A.D.GothongI.T. Center CEBU-SUBANGDAKU BRANCH Babor D. Lynn Jackie *no phonelinesyet Properties, 6000,CebuCity, Cebu LGF SMSeasideCityCebu,SouthRoad CEBU-SM SEASIDECITYBRANCH Campilan M. Alex China BankBranches a o: (036)500-8188 Fax No.: (036)500-8088;500-8188 268-2988 Tel. Nos.: Kalibo, Aklan Waldolf Garcia Building,OsmeñaAvenue KALIBO BRANCH IV Pison Y. Severo (033)338-2144 Fax No.: (033)336-0947;338-2136 Tel. Nos.: Brgy. Ortiz,IloiloCity, CBC Building,Rizalcor. GomezStreets ILOILO-RIZAL BRANCH Oquendo Y. Marie Rose (033)501-6078 Fax No.: (033)333-3988/4088 Tel. Nos.: Mandurriao, IloiloCity, Iloilo Benigno AquinoAve., Brgy. SanRafael ILOILO-MANDURRIAO BRANCH Chu G. (033)335-0370 Sharlan Fax No.: (033)335-0295;335-0370 509-0599 Tel. Nos.: A. MabiniStreet, IloiloCity, Iloilo ILOILO-MABINI BRANCH Anthony V. Arguelles Arguelles V. (036)621-3203 Anthony Fax No.: (036)621-3203;621-1780 522-5775 Tel. Nos.: Roxas City, Capiz 1063 RoxasAve. cor. BayotDrive ROXAS CITYBRANCH Cadorna V. (048)434-9892 Joselito (048)434-9891to93 Fax No.: Tel. Nos.: Puerto PrincesaCity, Palawan Malvar Street Valencia nearcorner Street PUERTO PRINCESACITYBRANCH Valle Del M. Noel (053)561-8348 Warren (053)255-3651to53 Fax No.: Tel. Nos.: Ormoc City, Leyte CBC Building,Realcor. LopezJaenaSts. ORMOC CITYBRANCH Cortez C. (034)729-3276 Mercedita Fax No.: (034)312-5818/19 729-3276 Tel. Nos.: San Carlos,Negros Occidental CarmonaStreetsRizal corner NEGROS OCC.-SANCARLOSBRANCH Gonzales V. Luisa (053)570-8488 Maria Fax No.: (053)381-2287/88 570-8488 Tel. Nos.: Leyte Southern Brgy. Tunga-Tunga, MaasinCity G/F SJCBldg.,Tomas OppusSt. MAASIN CITYBRANCH Gerardo T. Marylen 509-8838
Karen Jean Maslog T. Jean (038)501-0677 Karen Fax No.: (038)501-0688/77 411-2484 Tel. Nos.: Avenue, Tagbilaran City, Bohol G/F Melrose Bldg.CarlosP. Garcia TAGBILARAN CITYBRANCH G. (053)523-7700 Felina Fax No.: (053)325-7706to08 523-7700/7800 Tel. Nos.: Tacloban City, Leyte Uytingkoc Building,Avenida Veteranos TACLOBAN CITY BRANCH Diones L. Olympia (034)495-0480 Fax No.: 495-0480 (034)714-6400;495-5452 Tel. Nos.: Rizal St.,SilayCity, Negros Occidental SILAY CITYBRANCH James M. Bomediano M. (088)856-1325/1326 James Fax No.: (08822)722-240; 724-540 726-242 Tel. Nos.: Lapasan, CagayandeOro City CBC Building,Claro M.RectoAvenue CAGAYAN DEORO-LAPASAN BRANCH Untian Co C. Al (088)857-4200 Crescencio Fax No.: (08822)722-641 (088) Tel. Nos.: Cagayan deOro City RN AbejuelaSt.,SouthDivisoria BRANCH 857-5759 CAGAYAN DEORO-DIVISORIA Quirante G. Byzallel Jane (088) 858-3903 (08822) Fax Nos.: (08822)723-091;724-372 Tel. Nos.: Cagayan deOro City 724-372 Yakalcorner St.,Carmen G/F GTRealtyBuilding,MaxSunielSt. CAGAYAN DEORO-CARMENBRANCH Tan G. Janet (088)857-2212 Fax No.: (088) (08822)724-832/33 726-076 Tel. Nos.: J. R.BorjaStreet, CagayandeOro City CAGAYAN DEORO-BORJABRANCH 857-3742 Kho A. (085)815-3455 Sheelah Fax No.: 225-2081 (085)341-5159;341-7445 (085) Tel. Nos.: Butuan City CBC BuildingJ.C.AquinoAvenue BUTUAN CITYBRANCH 815-3454/55 PROVINCIAL BRANCHES-MINDANAO Reyes (088) 856-1325/1326 (088) 858-3902/03 187 Annual Report 2015 SOON-TO-OPEN BRANCHES ALABANG HILLS BRANCH G/F RBC-MDC Corporate Center Don Jesus Blvd., Alabang Hills Village Muntinlupa City Opening Date: May 2016 CITY – FILINVEST CORPORATE COMMERCENTER BRANCH Alabang, Commerce G/F Commercenter Filinvest cornerAve. Filinvest Ave., Muntinlupa City Alabang, Corporate City, April 21, 2016 Opening Date: Clara R. Buan CITY – FILINVEST CORPORATE BRANCH NORTHGATE Building, Northgate G/F Aeon Centre Cyberzone, Filinvest Corporate City Alabang, Muntinlupa City Nos.: Tel. 776-0502; 776-3234 April 21, 2016 Opening Date: Ma. Concepcion Masangkay BRANCH CEBU – AYALA G/F Insular Life Cebu Bldg. corner Biliran Road Mindanao Ave. Cebu Cebu IT Park, Cebu City, April 21, 2016 Opening Date: Sharon Rose L. Onrejas ZAMBOANGA CITY BRANCH ZAMBOANGA Lim Avenue Gov. CBC-Building, City Zamboanga corner Street, Nuñez Nos.: Tel. 991-1266 (062) 991-2978/79 Fax No.: Jaime (062) 991-1266 G. Asuncion BRANCH ZAMBOANGA-GUIWAN National Lobregat M.C. Tower, G/F Yang’s Zamboanga City Guiwan, Highway, Nos.: Tel. Fax No.: (062) 984-1751/54 Alexander (062) 984-1751 B. Lao GUSU ZAMBOANGA-SAN JOSE BRANCH Supermarket, San Jose Gusu Yubenco Zamboanga del Sur Zamboanga City, Nos.: Tel. (062) 995-6154/55 Dennis T. Wiong Yat Eivith Shenir C. Florendo BRANCH VALENCIA Bukidnon Valencia, A. Mabini Street, Nos.: Tel. 222-2356/2417 (088) 828-2048/49 Fax No.: (088) 828-2048 Gilmar L.Villaruel CITY BRANCH MALAYBALAY Highway Bethelda Building, Sayre Bukidnon Malaybalay City, No.: Tel. 813-3372 (088) Fax No.: 813-3373 Randolf M. Corrales BRANCH MIDSAYAP CBC Building, Quezon Ave. Poblacion 2, Midsayap, Cotabato No.: Tel. 229-9700 (064) Fax No.: (064) 229-9750 Ma. Estrella B.Velasco OZAMIZ CITY BRANCH Gomez corner Burgos Streets Misamis Occidental Ozamiz City, Nos.: Tel. Fax No.: (088) 521-2658 to 60 (088) 521-2659 Jefferson A. Go CITY BRANCH PAGADIAN Avenue Pajares Marasigan Building, F.S. Zamboanga del Sur Pagadian City, Nos.: Tel. 925-1116 (062) 215-2781/82 Fax No.: Jumilito (062) 214-3877 A. Dayuna SURIGAO CITY BRANCH CBC Building, Amat St. Surigao City Barrio Washington, Surigao del Norte Nos.: Tel. (086) 826-3958/68 Fax No.: (086) 826-3958 492-3009; 221-3009 BRANCH ILIGAN CITY Extension Avenue Lai Building, Quezon Lanao del Norte Pala-o, Iligan City, Nos.: Tel. 492-3009; (063) 221-5477/79 Fax No.: Ronald (063) 492-3010 O. Lua CITY BRANCH KIDAPAWAN Building, Quezon Blvd. G/F EVA Claudio Street Tomas cor. Kidapawan City National Highway, North Cotabato Nos.: Tel. Fax No.: 278-3510 (064) 278-3509; Wilbert (064) 278-3509 R. Baus KORONADAL CITY BRANCH Gen. Santos Drive corner St. Aquino South Cotabato City, Koronadal Nos.: Tel. 520-1788 (083) 228-7838/39 Fax No.: Rizkie (083) 228-7839 E. Zaragoza
China Bank Branches China 295-2332 221-6921/4163; 226-3851 226-2103 GEN. SANTOS CITY BRANCH CBC Bldg., I. Santiago Blvd. South Cotabato Gen. Santos City, Nos.: Tel. Fax No.: (083) 553-1618; 552-8288 Helen (083) 553-2300 Grace L. Fernandez GEN. SANTOS CITY-DADIANGAS BRANCH corner Lapu-Lapu Street M. Roxas Ave. Dadiangas East, Gen. Santos City Brgy. South Cotabato No.: Tel. Fax No.: (083) 552-8576 Helen (083) 552-8290 Grace L. Fernandez Ernesto A. Santiago, Jr. BRANCH DAVAO-TORIL McArthur Highway corner St. Peter Davao City Bayabas, Toril, Crossing Street, Nos.: Tel. (082) 303-3068; 295-2334 Gregorio E. Cuta DIPOLOG CITY BRANCH CBC Building, Gen Luna corner Dipolog City Gonzales Streets, Zamboanga del Norte Nos.: Tel. 908-2008 (065) 212-6768 to 69 Fax No.: (065) 212-6769 Ma.Jesusa Perpetua RecentesF. Elinor U.Toe LANANG BRANCH DAVAO-SM G/F SM Lanang Premier Davao City Avenue, Laurel J. P. Nos.: Tel. 285-1053 (082) 285-1064 Fax No.: Janice (082) 285-1520 S. Laburada BRANCH DAVAO-TAGUM Tagum 153 Pioneer Avenue, Davao del Norte Nos.: Tel. 400-2289/90 (084) 655-6307/08 Fax No.: (084) 400-2289 Fax No.: (082) 295-2332 DAVAO-RECTO BRANCH DAVAO-RECTO Recto Ave. CBC Bldg., C.M. J. Rizal St., Davao City cor. Nos.: Tel. (082) 221-4481/7028/6021 Fax No.: Carlos (082) 221-8814 C.Tan ANA BRANCH DAVAO-STA. R. Magsaysay Avenue Bangoy Street corner F. Sta. Ana District, Davao City Nos.: Tel. (082) 227-9501/51 221-6672 Fax No.: (082) 226-4902 221-1054/55 227-9601; bigail O. Sintos Chris G. Dolar DAVAO-PANABO CITY BRANCH DAVAO-PANABO Barangay New Pandan PJ Realty, Davao del Norte Panabo City, Nos.: Tel. Fax No.: (084) 628-4057; 628-4065 (084) 628-4053 Petronila G. Narvaez Maria Eloise D. Maniti BRANCH DAVAO-MATINA Km. 4 McArthur Highway Matina, Davao City Nos.: Tel. 297-5880/81 (082) 297-4288; 297-4455 Fax No.: (082) 297-5880 DAVAO-MA-A BRANCH DAVAO-MA-A G/F Lapeña Building, Mac Arthur Matina, Davao City Highway, Nos.: Tel. (082) 295-0472; 295-1072 Joselito S. Crisostomo Roberto A. Alag BRANCH DAVAO-LANANG Insular Village I, Km. 8 Lanang, Davao City Nos.: Tel. 234-7165 (082) 300-1892; 234-7166 Fax No.: (082) 300-1892 DAVAO-BUHANGIN BRANCH DAVAO-BUHANGIN Buhangin Road, Davao City Nos.: Tel. 221-5970 (082) 300-8335; 227-9764 Fax No.: (082) 221-5970 DAVAO-BAJADA BRANCH DAVAO-BAJADA Ave. Laurel B.I. Zone Building, J.P. Bajada, Davao City Nos.: Tel. Fax No.: (082) 221-0184; 221-0319 A (082) 221-0568 Ariel Cesar O. Romero Gina C.Telow CITY BRANCH COTABATO No. 76 S.K. Pendatun Avenue Maguindanao Cotabato City, Nos.: Tel. (064) 421-4685/4653 Fax No.: (064) 421-4686 Jasmine L. Soriano 880-1051/52 BRANCH CDO-GAISANO CITY MALL Recto cornerG/F Gaisano City Mall, C. M. City de Oro Corrales Extension, Cagayan Nos.: Tel. (08822)745-877/880 (088) Fax No.: (08822)745-880 CAGAYAN DE ORO-PUERTO BRANCH DE ORO-PUERTO CAGAYAN Zone 6 Building, Luis A.S. Yap City Puerto, Cagayan de Oro Brgy. Misamis Oriental Nos.: Tel. Fax No.: (088) 880-7183/85 (088) 880-7185 188 Annual Report 2015 Marites B. Nubla (OIC) Nubla B. 412-6249 412-4941; Marites (02) No.: Tel. City Quezon Lourdes, Brgy. Heights Mesa Sta. Street Banawe 247-249 Nos. BANAWE Buenafl C. Francisco 864-5065 864-5017 864-5011; (02) Tel. Nos.: City Makati Avenue, Ayala 6772 VGP Center AYALA (OIC) Sia C. Erlinda Tel. No.: (02) 734-0534 Manila Cruz, Sta. Rizal Avenue Theater Lord and Jenet –SAVEMORE AVENIDA (OIC) Gaza M. Wendell Mobile No.: 0917-809-9670 502-1437 921-3147; (02) Tel. Nos.: City Quezon Cubao, Center, Araneta Gen. Romulo Street SAVEMORE – COD CENTER ARANETA Bauayan Prima Visha 0917-863-6157 No.: Mobile 351-4928 (02) Tel. No.: Sikatuna, Quezon City Extension Anonas and Street V. Luna 30 Lot Road Street, Maamo –SAVEMORE ANONAS Gueco Michelle Shane 645-4710 654-0564; (02) Tel. Nos.: City Pasig Santolan, Street Evangelista corner Avenue Rodriguez Amang SAVEMORE – RODRIGUEZ AMANG (OIC) Dacio O. Dimples 403-2801 (02) Tel. No.: Alabang, Muntinlupa City Boulevard Jesus Don Arcade Citi Commercial Alabang HILLS ALABANG 842-1016 842-0761; (02) Tel. Nos.: Alabang, Muntinlupa City Madrigal Business Park St. cor. Industry Finance Bldg. Goal Common ALABANG Tapeño Ann January 525-6282 (02) Tel. No.: Malate, Manila Adriatico Pilar, del M.H. –HYPERMARKET ADRIATICO (OIC) Cabalonga Susan 0917-510-6013 No.: Mobile 964-1318 (02) Tel. No.: City Taguig Ususan, Estates, Acacia Town Taguig Center Acacia ACACIA ESTATES – SAVEMORE METRO MANILA or
Mobile No.: 0917-804-6443 No.: Mobile 511-1152; (02) 217-3069 Tel. Nos.: Alabang, Muntinlupa City Filinvest Corporate City AvenueCommerce corner near Drive Asia East Building Group BC FILINVEST CORPORATE CITY Laqueo P. Jasmin 0917-808-5214 No.: Mobile 531-9680 531-9676 987-4966; (02) Tel. Nos.: City Quezon Manila, New Street Hemady Doña corner Sr. Avenue Rodriguez E. Hemady Square - HEMADY SR. RODRIGUEZ E. Calderon I. Victoria Maria 741-8285 (02) Fax No.: 741-2447 (02) Tel. No.: City Quezon Sienna, Brgy. Avenue Monte Del 392 MONTE DEL Gaza M. Wendell 913-4903 (02) Fax No.: 913-5209 (02) Tel. No.: Cubao, Quezon City P.222 Tuazon Boulevard Fernandina Suites 88 CUBAO (OIC) Sanchez Cristina 964-1322 831-0477; (02) Tel. Nos.: Makati City Avenue Roces 2176 Chino ROCES CHINO Aguirre V. Maridyl 7645 and 3902 3900, locals 884-7600 (02) Trunklines: 812-9359 (02) Tel. No.: Makati City Avenue Puyat J. Gil 314 Sen. CBS Building MAIN BUENDIA Corporal J. Francesca Maria Mobile No.: 964-1292 0917-510-5911 553-5414; (02) Tel. Nos.: City Parañaque B.F. Homes, Avenue Aguirre 284 –PARAÑAQUE HOMES BF Dacio O. Dimples Mobile No.: 0917-561-5576 831-8507 551-3600; 507-4116; (02) Tel. Nos.: Parañaque City Subdivision Living Better Avenue Soledad Doña 90 –PARAÑAQUE LIVING BETTER (OIC) Aguirre V. Marydyl 621-3461 621-3459; (02) Tel. Nos.: Bangkal, Makati City Street Evangelista 1661 Amara Building BANGKAL China BankSavingsBranches Tel. Nos.: (02) 507-4090; 834-0408 507-4090; (02) Tel. Nos.: Taguig City Bicutan, Western TerminalFood Incorporated Bicutan Western Avenue DBP HYPERMARKET SM –TAGUIG FTI 964-1327 254-7337 254-0371; (02) Tel. Nos.: Binondo, Manila Juan694-696 Luna Street JUAN LUNA 890-1027 Mobile 890-1026; (02) No.: 0917-510-5919 Tel. No.: Makati City Poblacion, J.P. Street Rizal 882 J.P. RIZAL Rillera T. Joy Josephine 584-5946 748-7625; (02) Tel. Nos.: City Juan San Greenhills, Street 219 Wilson GREENHILLS – WILSON Bondoc V. Jennifer Maria 724-7528 724-7523 721-0105; (02) Tel. Nos.: City Juan San Greenhills, Ortigas Avenue Building VAG –ORTIGAS GREENHILLS Tenedero Marvann Geraldine Diwa Geraldine 0917-830-3268 No.: Mobile 548-0368 (02) Tel. No.: City Piñas Las Avenue, Aguilar J. Supermarket Parco PIÑAS LAS Valerio Marilet 893-1226 (02) Tel. No.: City Parañaque Huerta, La 1070 Avenue Quirino -PARAÑAQUE HUERTA LA Sison G. Marcelino 936-4988 461-7214; (02) Tel. Nos. City Quezon Novaliches, Lagro Greater Highway, Quirino Bonanza Building LAGRO Alejandro N. Edgardo 640-7085 (02) Fax No.: 642-2870 (02) Tel. No.: Pasig City Kapasigan Street, Mabini A. KAPASIGAN Aballa B. Abner 961-2628 709-3435; (02) Tel. Nos.: Kalookan City Street Mabini A. 353 Building, AJ –MABINI KALOOKAN Torribio Jude 365-7593 (02) Tel. No.: Kalookan City Park Grace Avenue, Rizal Augusto Building KALOOKAN Sia Erlinda
Rafael Ma. C. Guerra III Guerra C. Ma. Rafael 843-2447 293-0574; (02) Tel. Nos.: Pascor Drive, Parañaque City Ninoy Aquino Avenue corner BuildingSkyfreight NINOY AQUINO AVENUE Archangel Rowea 0917-863-6069 No.: Mobile 351-4883 (02) Tel. No.: City Quezon Kamias, West Street K-G and EDSA Building Rose Saint 770 NEPA-Q-MART SAVEMORE Belino Michelle Jeanette 442-6282 (02) Tel. No.: City Quezon EDSA-Muñoz, Floor Ground Lower Plaza, Jackman SAVEMORE –JACKMAN MUÑOZ (OIC) Ortiz Domingo 798-0357 403-0425; (02) Tel. Nos.: City Taguig Bonifacio, Fort McKinley Towncenter, McKinley Hill Plaza &Industry BCommerce Unit MCKINLEY HILL Maria Sta. Cecilia 681-2810 645-8169; (02) Tel. Nos.: City Marikina Roque, San Brgy. Avenue Fernando Gil CTP Building AVENUE FERNANDO –GIL MARIKINA Afuang J. Razelyn 943-6037 477-2445; (02) Tel. Nos.: City 1, Marikina Concepcion Brgy. Bayan-Bayanan33 Avenue MARIKINA 238-3745 238-3744 (02) (02) Tel. Nos.: City Mandaluyong Pag-asa, Brgy. Street Panaderos New 572 Paterno’s Building MANDALUYONG 931-6326 (02) Tel. No.: City Malabon Street, Pilar del M.H. Governor Pascual corner Market Francis Savemore MARKET –FRANCIS MALABON Montemayor B. Eleanor 0917-817-3526 No.: Mobile 966-9001 551-4724; (02) Tel. Nos.: City Piñas Las Uno, Almanza Brgy. Alabang-Zapote Road UNO –ALMANZA PIÑAS LAS Cuyos T. Benjamin 800-8893 (02) Tel. No.: City Piñas Las Alabang-Zapote Road, Almanza Gonzales Compound Building DMR 459 ZAPOTE –ALABANG PIÑAS LAS Enrica Farahnaz G. Abulencia G. Farahnaz Enrica 523-8606 523-8574; (02) Tel. Nos.: Manila Sta. Ana, Street Gil Pedro Savemore SAVEMORE ANA –STA. MANILA Martin I. Dean 189 Annual Report 2015 GUAGUA – STO. NIÑO Sto. Niño, Guagua, Pampanga No.:Tel. (045) 900-2326Fax No.: (045) 900-0779Betty L. Bacani Joy Marie C. Nolasco DAGUPAN Lyceum – Northwestern University Tapuac District, Dagupan City No.:Tel. (075) 523-3637Gingin T. Aquino DAGUPAN – PEREZ BOULEVARD Burgos Extension, corner Perez Boulevard and Lingayen Highway Junction, Dagupan City No.:Tel. (075) 515-7600 Fax No.: (075) 522-9586Maria Suzette D. R. RamosDAU MacArthur Highway Pampanga Mabalacat, Dau, Nos.:Tel. (045) 624-0167; 892-2216 Editha C. Gomez DOLORES Building STCI MacArthur Highway San Agustin, City of San Fernando Pampanga No.:Tel. (045) 649-3150Fax No.: (045) 649-3724Alexander Serrano GUAGUA Plaza Burgos, Guagua, Pampanga No.: Tel. (045) 901-0641 901-0966 Betty L. Bacani BALIBAGO Building JEV MacArthur Highway Balibago, Angeles City No.:Tel. (045) 892-3325Maricel E. Manalang BALIUAG Plaza Naning, Poblacion Bulacan Baliuag, No.:Tel. (044) 766-2014Fax No.: (044) 673-1338Maria Editha D. GatmaitanCABANATUAN CagayanKm 115 Valley Road 940-6944 Maharlika Highway near corner Street Sanciangco Cabanatuan City, Nueva Ecija Nos.:Tel. (044) 940-6942 940-6943; Theresa Padiernos BAYAN – CABANATUAN Avenue Burgos City Cabanatuan Nueva Ecija No.:Tel. (044) 600-2888Fax No.: (044) 463-0441 NORTH LUZON BALANGA – D.M. BANZON D.M. Banzon Ave. corner Sto. Domingo St., Balanga City Bataan Nos.:Tel. (047) 237-3666 237-3667 Mary Jane L. Sazon ANGELES – SAN JOSE RosarioSto. Street San Jose, Angeles City Nos.:Tel (045) 409-0234 888-2048 Maria Beata P. Larin ARAYAT Cacutud, Arayat, Pampanga No.: Tel (045)Rowena 885-2390 C. Cura BAGUIO KDC Building, Upper Ground Floor City Baguio Highway, Marcos 91 Nos.:Tel. (074) 424-1245; 424-6414 Mobile No.: 0917-868-3506 SESSION – BAGUIO B108 Lopez Building Session Road Road Assumption corner City Baguio No.:Tel. (074) 446-3993Fax No.: (074) 446-3994Maria Elena F. Estira BALAGTAS MacArthur Highway Wawa, Balagtas, Bulacan No.:Tel. (044) 693-1849Adelaida P. Dumlao BALANGA Capitol Drive Balanga City, Bataan No.:Tel. (047) 237-4138 Mary Jane L. Sazon VISAYAS AVENUE VISAYAS 990-7717 Wilcon City Center Mall Upper Ground Floor Visayas Avenue, Quezon City Nos.:Tel. (02) 990-6543 990-6544; Ericson A. Albano ANGELES Extension Miranda Street Asuncion corner City Angeles No.: Tel (045)Mobile No.: 0917-830-3296 458-0298 Maria Beata P. Larin ANGELES – RIZAL 639 Rizal Street, Angeles City Nos.:Tel (045) 323-4303 625-9722 Fax No.: (045) 888-4971Annalyn L. Tolentino China Bank Savings Branches Bank Savings China Elizabeth P. Munda VALENZUELA 385 MacArthur Highway City Valenzuela Malinta, No.:Tel. (02) 709-4641Jobel Arana MARULAS – VALENZUELA 921 MacArthur Highway City Valenzuela Marulas, Nos.:Tel. (02) 291-6542: 291-6541 Jobel Arana Wilhelmina Go AVENUE UN 552 U.N. Avenue Ermita, Manila Nos.:Tel. (02) 400-5467; 400-5468Edward Lyndon Dimapilis TIMOG Towers Jenkinsen 80 Timog Avenue Brgy. Sacred Heart, Quezon City Nos.:Tel. (02) 371-8303; 371-8304 371-8305 Randal Ignatius Z. Razo TWO E-COM CENTER E-ComTwo Center B Tower Ocean Drive corner Bayshore Avenue Mall of Asia Complex, Pasay City Nos.:Tel. (02) 587-4753; 802-3068 802-5583 Mobile No.: 0917-506-8303 SAN JUAN CITY Square Madison 264 N. Domingo Street Brgy. Pasadena, San Juan City No.:Tel. 0917-561-5639 No.: (02) 507-4147 Mobile Jeanette May Castillo BOULEVARD SHAW 500 Shaw Tower 500 Shaw Boulevard City Mandaluyong No.: Tel (02)Mobile 941-9412 No.: 0917-580-6593 Stephanie Villanueva TAFT – MASAGANA SAVEMORE Parkview Plaza, Trida Building Avenue cornerTaf Kalaw T.M. Street Ermita, Manila No.:Tel. (02) 554-0617Mobile No.: 0917-538-2421 QUEZON AVENUE – PALIGSAHAN 1184-A Ben-Lor Building Avenue Quezon Brgy. Paligsahan, Quezon City Nos.:Tel. (02) 376-4544; 376-4546 376-4548 Maria Antonette C. FuentesRADA – LEGASPI Center HRC 104 Rada Street City Makati Village, Legaspi Nos.:Tel. (02) 810-9369; 812-2577 818-2368 No.: Fax (02) 810-9370 Amapola A. Guina or Helen Rowena Abanto Mary Faith Fausto AVENUE QUEZON Building GJ 385 Quezon Avenue, Quezon City Nos.:Tel. (02) 332-2638; 332-2639 Mobile No.: 0917-538-2423 Santos F. Guadines, Jr. PEDRO GIL – SAVEMORE Pedro Gil corner Singalong Street Manila Paco, Nos.:Tel. (02) 354-3117; 521-4056 PATEROSALMEDA – Almeda120 Street Pateros, Metro Manila No.: Tel. (02) 641-6768 No.: Fax (02) 641-6760 Santos F. Guadines, Jr. (OIC) Carmelita D. P. Apalisoc PATEROS 500 Elisco Road Sto. Rosario, Pateros City Nos.:Tel. (02) 641-9556; 655-2349 Joseph Arnold Mirafl PASO DE BLAS Building Andok’s 629 General Luis Street Interchange-NLEX Malinta Paso de Blas, Valenzuela City No.:Tel. (02) 984-8258 No.: Fax (02) 443-5069 Ma. Fracesca S. Corporal PASIG – PADRE BURGOS Padre Burgos114 Street Kapasigan, City Pasig Nos.:Tel. (02) 650-3356; 650-3361 650-3362 Irmina V. Dator PARAÑAQUE – JAKA PLAZA Jaka Plaza Center A.Dr. Santos Avenue (Sucat Road) Brgy. San Isidro, Parañaque City No.:Tel. (02) 820-6093Fax No.: (02) 820-6091 ORTIGAS – CITRA OMMUnit B1, Citra Building San Miguel Avenue Ortigas Center, Pasig City Nos.:Tel. (02) 637-2018; 637-9778 637-9824 Gilda Alunan NOVA PLAZANOVA MALL – SAVEMORE Novaliches Plaza Mall Quirino Highway corner Ramirez Street Novaliches Proper, Quezon City No.:Tel. (02) 983-1512 CENTER ORTIGAS Square Hanston San Miguel Avenue Ortigas Center, Pasig City No.:Tel. 0917-807-8394 No.: (02) 654-1912 Mobile 190 Annual Report 2015 Ricardo R. Chua R. Ricardo 222-2020 (047) No.: Fax 222-2131 (047) Tel. No.: City Olongapo Avenue, Rizal 2043 2 Building Guevarra R&P OLONGAPO – RIZAL AVENUE Chua Ricardo Mobile No.: 0917-807-8509 222-2504 222-1891; (047) Tel. Nos.: City Olongapo Asinan, New Drive Magsaysay 25 Hotel View City OLONGAPO Dayrit S. Regina 435-6055 (045) No.: Fax 861-1066 (045) Tel. No.: Pampanga Fernando ofSan City Saguin, Brgy. Highway MacArthur 78 Km. AMB Building MOUNT CARMEL Evangelista S.R. Roberto 840-0099 228-2416 (044) Tel. Nos.: Bulacan Meycauayan, Calvario, Highway MacArthur Mancon Building MEYCAUAYAN Bernarte C. 435-2906 Jona (045) Tel. No. Pampanga Masantol, Nicolas, San MASANTOL Esteban G. Romeo 662-7819 (044) No.: Fax 791-2461 (044) Tel. No.: ofCity Malolos, Bulacan Catmon Congreso, del Paseo – CATMON MALOLOS Martinez Rosanna 0917-835-4684 No.: Mobile 794-2830 (044) Tel. No.: ofCity Malolos, Bulacan Rosario Sto. Street, Canlapan MALOLOS Benitez G. Christopher Mobile 435-5507 (045) No.: 0917-821-8102 Tel. No.: Poblacion, Macabebe, Pampanga MACABEBE Mobile 234-3776 No.: (077) 0917-816-2456 Tel. No.: Norte Ilocos City, Laoag Streets M.V. Farinas J.P. corner Rizal Building LC Square LAOAG Chan B. Eloisa 242-0414 (072) No.: Fax 700-3800 (072) Tel. No.: Union La City, Fernando San Quezon Avenue AG Building Zambrano LA UNION Samuel Pagsibigan Samuel 913-7629 (044) Tel. No.: Bulacan Rafael, San corner Cruz na Daan Road Valley Cagayan SAN RAFAEL Monsalud N. Johnest 913-2245 (047) Tel. No.: Zambales Narciso San Libertad, Brgy. NARCISO SAN Villamor D. Imelda 764-0826 (044) No.: Fax 764-0162 (044) Tel. No.: Bulacan Miguel, San Jose, San Norberto Street SAN MIGUEL Mendoza C. Othello 0917-835-4675 No.: Mobile 815-6616 815-8396 (044) Tel. Nos.: Bulacan Monte, Del Jose ofSan City Tungkong Mangga Gov. Avenue Halili Giron Building MONTE DEL JOSE SAN Villafuerte D.C. Ledwina 797-0974 797-0742; (044) Tel. Nos.: Bulacan Ildefonso, San Road Valley Cagayan Savemore Building –SAVEMORE ILDEFONSO SAN Velasquez M. Misael 0917-584-4429 No.: Mobile 280-7818 (045) Tel. No.: Pampanga Fernando, ofSan City Consunji Street JSL Building –BAYAN FERNANDO SAN Tiongson S. Jaquelyn Ann Mary 961-1416 961-1415 (045) Tel. Nos.: Pampanga Fernando, ofSan City Road San Fernando-Gapan Building Trading KHY SAN FERNANDO Jr. Garcia Valencia Mariano 0917-870-3305 No.: Mobile 329-3188 (045) Tel. No.: Porac, Pampanga Cangatba, PORAC Peralta R. Rolando 795-0105 670-1067 (044) Tel. Nos.: Bulacan Plaridel, 1st, Banga Road Valley Cagayan 0226 PLARIDEL Fermin T. Cristina Maria 638-1130 431-1275; (047) Tel. Nos.: Bataan Orani, Real, Calle REAL –CALLE ORANI Dimalanta B. Elsie 638-1282 638-1281; (047) Tel. Nos.: Bataan Orani, Balut, Brgy. ORANI China BankSavingsBranches Tel. No.: (047) 232-6104 (047) Tel. No.: Subic,Baraca, Zambales SUBIC 305-0252 305-0260 (078) Tel. Nos.: Isabela City, Santiago Norte, Victory Street Quezon corner Maharlika Highway JECO Building NORTE –VICTORY SANTIAGO 258-0017 305-0580 (078) Tel. No.: Isabela City, Santiago Road CentroCity East SANTIAGO Cunanan S. Gloria 434-0131 900-0658 (045) Tel. Nos.: Pampanga Rita, Sta. Vicente, San STA. RITA Cabuhat O. Helen 641-1150 (044) No.: Fax 893-0587 288-2453 (044) Tel. Nos.: Sta. Bulacan Poblacion, Maria, Leon De M. corner Luna Gen. STA. MARIA Gomez P. Lita 409-0335 (045) Tel. No.: Pampanga Ana, Sta. Poblacion, STA. ANA Melvin R. Aguinaldo R. Melvin 674-0300 (077) Tel. No.: Norte Ilocos City, Vigan Mabini Calle corner Avenue Quezon Agdamag Building VIGAN Jr. Muñoz V. Loreto 522-0498 624-2331 (075) Tel. Nos.: Pangasinan City, Urdaneta Nancayasan Highway, MacArthur URDANETA Allauigan P. Mario 844-0484 (078) Tel. No.: City Tuguegarao Street, Rizal Complex Rectory Parish Cathedral Metropolitan TUGUEGARAO Isais Thelma Ma 982-9653 (045) No.: Fax 982-9652 (045) Tel. No.: City Tarlac Nicolas, San Highway MacArthur –MACARTHUR TARLAC (OIC) Isais Thelma Ma 628-0754 (045) Tel. No.: City Tarlac Sebastian, San Bypass Road RIC Building TARLAC Comandante Cheryl Mobile No.: 0917-561-5883 431-9906 232-7542 (046) Tel. Nos.: Cavite City, Bacoor III, Molino Road 817 Molino Building Avon –MOLINO BACOOR Tan G. May 417-4504 (046) Tel. No.: Cavite City, V,Talaba Bacoor Street Evangelista Gen. FRC Mall BACOOR Oxales C. Cecilia Ma. 697-0224 697-1066 (02) Tel. Nos.: Rizal Antipolo, Street, cor. Dimailig Ave. Quezon L. M. Bldg., EMS ANTIPOLO Quitoriano V. Lourdes 651-1779 (02) Tel. No.: Rizal Angono, Ave., Quezon L. M. ANGONO 545-3670; (02) 520-8808 (02) 545-3670; Solomon B. Rodel 545-5310 (049) Tel. Nos.: Laguna City, Calamba Crossing Uno, Brgy. Street, Domingo Sto. corner Highway National AS Building –CROSSING CALAMBA Solomon B. Rodel Mobile No.: 0917-817-3609 306-0238 306-0234 (049) Tel. Nos.: Laguna City, Calamba Halang, Brgy. National Highway HK Building II CALAMBA Carandang A. Lilibeth 429-4878 (02) Fax No.: 511-3638 (049) Tel. No.: Laguna City, Biñan Vicente, San Nepa Highway BIÑAN Guevarra R. Edwin 723-7652 723-1510; (043) Tel. Nos.: Batangas City 4P. Street No. Burgos –P.BATANGAS BURGOS (OIC) Guevarra 980-0544 Edwin (043) Tel No.: Batangas City West Pallocan Road, National Miriel’s Place BATANGAS CITY Baloy G. Victoria Maria 417-5930 (046) No.: Fax 417-5940 (046) Tel. No.: Cavite City, Bacoor VII, Talaba Brgy. Highway Aguinaldo corner Road Coastal BACOOR – TALABA Tan G. May SOUTH LUZON 191 Annual Report 2015 MINDANAO Jennifer Marie R. De Leon CAGAYAN DE OROCAGAYAN Street Osmeña Sergio Cogon District, Cagayan de Oro City No.:Tel. (088) 323-1507Maria Socorro D. Cosme DE OROCAGAYAN – TIANO BROTHERS Tiano Brothers Street Cagayan de Oro City Nos.:Tel. (088) 727-082; 727-083 857-2879 Maria Socorro D. Cosme DAVAO 8990 Corporate Center Quirino Avenue City Davao Nos.:Tel. (082) 321-0273; 321-0274 Mae D. Hipolito – RECTO DAVAO C. M Ville Abrille Building C. M. Recto Street City Davao Nos.:Tel. (082) 227-1802 305-5808 Leah O. Lim GENERAL SANTOS I. Santiago Boulevard General Santos City No.:Tel. (083)552-6329 Fax No.: (083) 552-6330Maria Theresa S. PachecoZAMBOANGA – CITY MALL City Mall Don Alfaro Street Tetuan, Zamboanga City No.:Tel. 0917-809-6799 (062) No.: 955-8709Mobile MANDAUE A. Del Rosario Avenue Mantuyong, Mandaue City, Cebu Nos.:Tel. (032)520-2780 422-8019 Kristine Marie M. Diores MANDAUE – BASAK Co Tiao King Building Cebu North Road Basak, Mandaue City, Cebu No.:Tel. (032) 346-6959Fax No.: (032) 346-8814Pia Monica C. Alturas – NEGROSTALISAY SAVEMORE Talisay Savemore Mabini Street, Zone Paseo 12, Mabini TalisayCity, Negros Occidental Nos.:Tel. (034) 441-6264 441-6267 Jaime Javier D. Torre VISAYAS ILOILO – QUEZON 132 Quezon Street CityIloilo No.: Tel. (033) 321-0940Elly Beth L. Amparo (OIC) BACOLOD – LUZURIAGA SolimanF. Building Street Lacson corner Luzuriaga Street Bacolod City, Negros Occidental Nos.:Tel. (034)704-1084; 704-1089 Katrina Maquiran (OIC) CEBU – LAHUG Skyrise IT Building Brgy. Apas, Lahug, Cebu City Nos.:Tel. (032) 236-0809 236-0810 Mary Ryan E. Sy CEBU – MANGO JSP Mango Realty Building Gen. Maxilom Avenue corner Echavez Street City Cebu Nos.:Tel. (032) 231-4304 231-4736 Maria Theresa L. Tan ILOILO Building Cua Quezon Street CityIloilo Nos.:Tel. (033) 336-9752 336-9753 Elly Beth L. Amparo (OIC) ILOILO – JARO Lopez Jaena corner EL 98 Streets Iloilo Jaro, Nos.:Tel. (033) 320-0370 320-0426 Elly Beth L. Amparo TAYTAY – TIKLINGTAYTAY Arcade Road East Manila East corner Cabrera Road Taytay, Rizal No.:Tel. (02) 658-6409 No.: Fax (02) 658-0850 Mary Joy D. Surla LOS BAÑOSU.P. Kanluran Road, UPLB Campus College, Los Baños, Laguna Nos.:Tel. (049) 536-3058 536-3682 Cherry Jane O. Pamplona BACOLOD SKT Saturn Building Lacson Street corner Rizal Street Bacolod City, Negros Occidental Nos.:Tel. (034) 435-6983 435-7143 Katrina Maquiran China Bank Savings Branches Bank Savings China Myla L. Mapalad – MENDEZ SAVEMORETAGAYTAY West Crossing Mendez Tagaytay-Nasugbu Highway corner Mendez-Tagaytay Road Tagaytay City Nos.:Tel. (046) 413-3871; 413-3872 0917-561-5334 No.: Mobile Genelyn Chua TAYTAY C. Gonzaga Building II Manila East Road, Taytay, Rizal Nos.:Tel. (02) 623-6113; 650-3367 Mobile No.: 0917-578-6978 Mary Joy D. Surla Amor F. Cajucom STA. ROSA BALIBAGO – 520-8448 National Highway Street Lazaga corner Balibago, Sta. Rosa City, Laguna Nos.:Tel. (049) 534-1167 (02) Sonny L. Triviño STO. TOMAS – MAHARLIKA Agojo Lifestyle Strip Highway Maharlika Sto. City, Tomas Batangas No.:Tel. (043) 318-0582Fax No.: (043) 778-3247 Simplicia Elizabeth C. KalawSAN PABLO – RIZAL AVENUE (OIC) Rizal Avenue corner Lopez Jaena Street San Pablo City No.:Tel. (049) 562-7738Fax No.: (049) 562-0697Simplicia Elizabeth C. KalawSAN PEDRO Gen-Ber Building Highway National Landayan, San Pedro City, Laguna Nos.:Tel. (02) 869-8221; 869-8220 Quenie Umil (OIC) ROSA STA. Lot 2 Block 5 Phase 2A Avida Commercial Road Rosa-Tagaytay Sta. Sto. Domingo, Sta. Rosa City, Laguna No.:Tel. 0917-510-5951 No.: (049) 502-9134Mobile NAGA Building RL Panganiban Street Lerma, Naga City, Camarines Sur No.:Tel. (054) 472-1947 Albert B. Tan BURGOSNAGA – P. Burgos cornerP. Gen. Luna Street Naga City, Camarines Sur Nos.:Tel. (054) 473-6321 473-6322 Albert B. Tan (OIC) SAN PABLO Zamora Street P. Brgy. VII-B, San Pablo City No.:Tel. (049) 503-2890 Simplicia Elizabeth C. Kalaw (OIC) Rolando Castillo (OIC) LUCENA Merchan corner Evangelista Street CityLucena No.:Tel. (042) 660-6964Fax No.: (042) 710-6964 Rolando Castillo LIPA – C.M. RECTO C.M. Recto Avenue, Lipa City Nos.:Tel. (043) 756-1414; 756-1022 LIPA Building Tibayan 1705 C.M. Recto Avenue corner Rizal Street, LipaCity Nos.:Tel. (043) 751-5107; 981-3602 Cherry Jane O. Pamplona (OIC) Roman Villacorta LOS BAÑOS – CROSSING Lopez Avenue, Batong Malaki Laguna Baños, Los No.:Tel. (049) 536-2596Fax No.: (049) 536-0549 LAGUNA – STA. CRUZ E & E Building Pedro Guevarra Avenue Laguna Cruz, Sta. No.: Tel. (049) 501-4327 Joe Marcel M. Ponseca Joe Marcel M. Ponseca (OIC) LUMA TANZANG IMUS – Aguinaldo Highway Tanzang Luma, Imus City, Cavite Nos.:Tel. (046) 471-4715; 476-0927 Fax No.: (046) 471-7413 FILOIL SUPLANG TANAUAN FiOil Gas Station Brgy. Suplang, Tanauan City, Batangas No.:Tel. (043) 502-7144Mobile No.: 0917-863-6160 IMUS Aguinaldo Highway Anabu II, Imus City, Cavite No.:Tel. (046) 471-0178 Cecilia S. Gutierrez Timoteo D. De Villa Jr. DASMARIÑAS Veluz Plaza Building Zone I, Aguinaldo Highway Dasmariñas City, Cavite Nos.:Tel. (046) 416-0501; 416-0510 204-0024; 204-0025 DARAGA - ALBAY Street Rizal Brgy. San Roque, Daraga, Albay Nos.:Tel. (052) 483-0706 204-0024; Rosewedi L. Baltero Cruz CAVITE CITY CAVITE 485 Burgos Street P. Brgy. 34, Caridad, Cavite No.: Tel. (046) 417-3100 192 Annual Report 2015 Bagumbayan, Q.C. 188 E.RodriguezJr. Ave. Eastwood CityCyberpark G/F EastwoodCityWalk PhaseII Eastwood CityWalk 2 MakatiCity Dasmariñas Village, 1417 CampanillaStreet Offi Association Dasmariñas Village Ayala Alabang,Muntinlupa Commerce Ave., Filinvest Commerce Center Comembo, MakatiCity J.P. SampaguitaSt. RizalExt.corner Comembo Commercial Complex Makati City 8745 PaseodeRoxascor. St. Villar Starbucks, ChinaBankBuilding China BankOnlineCenter 1274 P. Algue,Manila Chiang KaiShekCollege Filmore, MakatiCity 2nd FloorCash&CarryMall Cash &Carry Loyola Heights,QuezonCity G/F KostkaHall,KatipunanAvenue Ateneo DeManilaUniversity Quezon City P. Tuazon Blvd.,Araneta Center Square EntranceAliMall Times Ali Mall2 Quezon City P. Tuazon Boulevard, AranetaCenter ATM Booth#1UpperG/FAliMall Ali Mall Las PiñasCity Naga Road,PulangLupa2 Alfamart -NagaRoadLasPiñas Muntinlupa City Alabang -ZapoteRoad Alabang Town Center District 3,Binondo Soler Street, Brgy. 293,Zone28 Basement front, 1002-1062 999 ShoppingMall Binondo, Manila SolerSt. Recto corner 999 Mall2 Sta. ElenaStreet, Binondo,Manila 3/F FoodCourt,168Mall 168 Mall ce METRO MANILA China BankOff-Branch ATM Directory Taguig, Metro Manila Bonifacio GlobalCity Market! 1 Malabon City Dagat-dagatanAvenuecorner G/F ATM 4,C4Road Malabon Citisquare 537 M.Earnshaw, Sampaloc,Manila Liana’s -Sampaloc Ext., Pag-asa,QuezonCity Trinoma, EDSAcor. 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Eastwood Mall,E.RodriguezJr. Ave. Level 1ATM 2Phase Eastwood Mall Cyberpark, Bagumbayan,QuezonCity Eastwood Avenue, EastwoodCity 2/F EastwoodCyberMall Eastwood CyberMall oorLandmark- Muntinlupa City Presidio Sudvision,Lakefront Puregold -Lakefront cor. G.AranetaAve., QuezonCity E. RodriguezAvenue ATM #1-CoscoBuilding Puregold -E.Rodriguez Ortigas Avenue, PasigCity Rockwell BusinessCenter People Support-Rockwell (facing Esplanade),PasayCity SM MallofAsia,PalmCoastAvenue One E-ComCenter Novaliches, QuezonCity cor. P. DelaCruz,Brgy. SanBartolome 689 QuirinoHighway G/F NovaSquare Nova Square ParañaqueCity Multinational Village, Nazareth corJudeaSt. Multinational Clubhouse EDSA, MandaluyongCity -ShawStation MRT MRT -Shaw EDSA, QuezonCity -NorthAvenueMRT Station MRT -NorthAve. EDSA, QuezonCity -CubaoStation MRT MRT -Cubao EDSA, MandaluyongCity -BoniStation MRT MRT -Boni 2702 RoxasBoulevard, PasayCity (previously HyattHotel) Midas Hotel Meralco Avenue, PasigCity Commercial Complex ATM 1BuildingC,G/FMetrowalk Metrowalk EDSA cor. Taft Ave., PasayCity 3/F Metro PointMall Metro PointMall Pasig City Medical City, OrtigasAvenue Medical City Taguig, Metro Manila Market!, BonifacioGlobalCity G/F ATM Center-FiestaMarket! Market! 3 Taguig, Metro Manila Bonifacio GlobalCity 2/F Market! Market! 2 Puregold Jr. -Blumentritt Malinta Exit,Valenzuela City Gen.LuisSt. Paso deBlascorner Puregold -PasodeBlas Arroceros Side, Manila ATM-3 UG/FMainEntrance SM City-Manila Pamplona, LasPiñas (near elevator),Alabang-ZapoteRoad G/F SMCenterLasPiñas SM Center-LasPiñas Don Antonio,QuezonCity Blk. 17,CommonwealthAve. Shopwise -Commonwealth Road, SanRoque,AntipoloCity M.L. QuezonSt.cor. Circumferential Shopwise -Antipolo Proper, Novaliches,QuezonCity 248 Gen.LuisStreet, Brgy. Nova Shop andRide2 Quezon City 248 Gen.LuisStreet, Novaliches Shop andRide Taft Avenue, PasayCity Main Entrance,EDSAnearcorner Ground Floor, RightSideof Savers Center Plant Mall,MakatiCity Stall No.060,Ground LevelPower Rockwell -P1(Concourse) cor. AdriaticoSt.,Ermita,Manila Robinsons PlaceManila,Pedro Gil G/F Padre FauraEntrance Robinsons Place-Manila Pasig City EDSAcor.West Wing, OrtigasAve. Robinsons Galleria3 OrtigasAve.,EDSA corner PasigCity L1-181 RobinsonsGalleria Robinsons Galleria2 OrtigasAve.,EDSA corner PasigCity L1-181 RobinsonsGalleria Robinsons Galleria EDSA,Mandaluyong corner ATM CenterPioneerside,St. Robinsons ForumPioneer Resorts World, PasayCity G/F CasinoGamingArea Resorts World Zone 093,Pandacan,Manila West J.ZamoraSt.,Brgy. 851 Puregold Jr. -Pandacan Sta Cruz,Manila 286 BlumentritStreet 193 Annual Report 2015 St. cor. Lacson St. St. cor. th Araullo University Maharlika Highway City Bitas, Cabanatuan Ateneo de Davao University Near Main Entrance City Davao Along Roxas Avenue, Bacolod Hotel Avenue 12 Bacolod City Budget Wise Supermarket Zamboanga City Ave., Veterans Caltex - SLEX 1 South Luzon Expressway - San Antonio Northbound, Brgy. San Pedro, Laguna Camayan Beach Resort Ilanin Camayan Wharf, West Forest Area, Subic Bay Freeport Zone CB Mall Nancayasan McArthur Highway, Pangasinan Urdaneta City, CDO Medical Center CDO Medical Center Building 2 Nacalaban St. cor. Tiano Cagayan De Oro City Cebu Doctors’ Hospital Osmeña Boulevard, Cebu City Cebu Doctors’ University 1 Potenciano Larrazabal Ave. North Reclamation Area, Mandaue City Celebes Coconut Butuan Butuan City Banza, P-4 Brgy. Centrio Mall Corrales St. G/F CM Recto Cor. Cagayan De Oro Clark Gateway Clark Gateway Commercial Complex Street, San Francisco Velasquez Mabalacat, Pampanga Corpus Christi School Corpus Christi School Saco Street, Macasandig Tomas Cagayan De Oro City Davao Adventist Hospital Km. 7 McArthur Highway Bangkal, Davao City Dipolog Center Mall Dipolog Center Mall,138 Rizal Avenue Dipolog City DIPSSCOR DIPSSCOR Bldg., International Port of Davao, Sasa Wharf, Km10, Sasa Davao City c Company PROVINCIAL 2 Mango Avenue Bldg. - Solara 2 Mango Avenue Cebu City General Maxilom Avenue, 268 Mall 268 Mall CK Building, Plaridel City Extension, Sto. Rosario, Angeles Baguio A. Bonifacio-McDonald’s Building, Bonifacio St. Villanueva Baguio City Abreeza Mall Bajada, Davao City Laurel Avenue, J.P. Adventist University of the Philippines Road Sta. Rosa-Tagaytay Silang, Cavite City Puting Kahoy, AG&P Atlantic, Gulf And Pacifi of Manila, Inc., San Roque, Bauan Batangas Alfamart - Ilang-Ilang Tanza Ilang-Ilang St., De Roman Subd. Cavite Daang Amaya 1, Tanza, Alfamart - Lumina Aguinaldo Highway corner Nueno Imus, Cavite 4603 Avenue, Alfamart - Pacita Complex Phase 3A, Block 3, Pacita Complex San Pedro, Laguna Alfamart - Poblacion Rosario Drive 153 Gen. Trias Ground Floor, Poblacion, Cavite Rosario, Brgy. Martires Alfamart - Trece CPC Bldg., Hugo Perez Martires, Cavite Trece Catalina Alfamart - Villa Lot 6123, San Agustin, Dasmariñas Cavite Silang Alfamart - Yakal 137 Pedro Montoya St. Ground Floor, San Miguel, Silang, Cavite Yakal, Cor. Alwana Business Park Barangay Cugman National Highway, Cagayan De Oro City Angel Supermarket Luna St. corner Burgos St. Quirino, Solano, Nueva Vizcaya Brgy. Angeles University Foundation McArthur Highway corner San Pablo St., Angeles City UST Hospital Manila UST Hospital, España Street, UST Hospital 3 G/F UST Hospital Clinic Division Sampaloc A.H. Lacson Avenue, Manila Victory Central Mall 2 below escalator G/F ATM #717 Old Victory Compound Monumento Rizal Avenue, Caloocan City Victory Pasay Mall Avenue Libertad corner Taft Pasay City Golf & Country Club Wack Wack Shaw Blvd., Mandaluyong City Mart - Makati Walter (near Mercury Mart Makati G/F Walter Drug), 790 Chino Roces Avenue Antonio Arnaiz, Makati City cor. Mart - N. EDSA Walter Mart Bldg., EDSA, Q.C. Walter Mart - Sucat Walter A. Santos Avenue Dr. San Isidro, Brgy. Sucat, Parañaque Center Zabarte Town 588 Camarin Road corner Zabarte Road North, Caloocan City Trinoma 1 Trinoma Landmark and Level 1 (near Ave. Chowking), North EDSA, Quezon City cor. 2 Trinoma Level 1 (near Bench & McDo) Quezon City EDSA, cor. North Avenue Shopping Center Two near corner Avenue EDSA Taft Pasay City Center UP Town 2F Phase 1B Katipunan Ave. UP Campus, Diliman Brgy. Quezon City UPM - PGH Faculty Medical Arts Bldg. Manila Avenue, PGH Compound, Taft Clinic UST - Doctor’s and UST Hospital, Vestibule España, Manila Clinic, New Doctor’s China Bank Off-Branch ATM Directory ATM Bank Off-Branch China Ave., The Fort, Taguig City The Fort, Taguig Ave., th SM City - Taytay A SM City Taytay 2nd Floor Bldg. Dolores Brgy. Manila East Road, Rizal Taytay, SM Hypermarket Floor SM Hypermarket Ground SM Mall of Asia, Pasay City SM Hypermarket - Mandaluyong 121 Shaw Blvd. corner City E. Magalona St., Mandaluyong SM Megamall B Level 2 Building B, SM Megamall St. Julia Vargas EDSA cor. Mandaluyong City SM MOA Seaside Ferry Terminal SM MOA Seaside Blvd. near Esplanade, Pasay City SM Muntinlupa 2 (beside Rear Entrance) G/F ATM National Road Tunasan, Bgy. Muntinlupa City Manila Solaire Aseana Avenue Entertainment City, Parañaque City Southgate Mall Extension EDSA corner Pasong Tamo Makati City St. Francis Square Avenue Basement 1, Dona Julia Vargas Bank Drive, Ortigas Center cor. Mandaluyong City St. Jude College Don Quijote St. Dimasalang St. cor. Sampaloc, Manila - Q.C. St. Luke’s Medical Arts Center, Medical St. Luke’s Boulevard Building, E. Rodriguez Sr. Q.C. - The Fort 1 St. Luke’s Medical Center Basement, St. Luke’s 5 STI Delos Santos Blvd. 201 E. Rodriguez Sr. Pamayong Lagi, Quezon City Brgy. - U.N. Taft Kalaw G/F Times Plaza,T.M. Gen. Luna St., Manila cor. The A.Venue Site, The A.Venue G/F Valdez Makati City 7829 Makati Avenue, Tiendesitas Ortigas Avenue Verde, Frontera C-5, Pasig City cor. 194 Annual Report 2015 Mabalacat City, Pampanga McArthur Hi-Way, Brgy. SanFrancisco Jollibee -Mabalacat Angeles City, Pampanga Jenra GrandMall,Sto.RosarioSt. Jenra Mall Pampanga Center, Sto.RosarioSt.,Angeles City G/F HolyAngelUniversityStudent’s Holy AngelUniversity2 Josefa St.,AngelesCity Grosvenor Square Avenue, CabanatuanCity Good SamaritanCompound,Burgos Good SamaritanHospital J.P. RizalSt.,Balanga,Bataan Galeria Victoria Tabunok, Talisay, CebuCity G/F GaisanoFiestaMall Gaisano Mall-Talisay Ave., CagayanDeOroCity Corrales Extensioncor. C.M.Recto Unit 32/LAtrium,GaisanoMall Gaisano Mall-CagayandeOro Avenue, Bajada,DavaoCity Gaisano MallofDavao,J.P. Laurel Gaisano Mall-BajadaDavao Lapu-Lapu City, Cebu Gaisano MactanMall,Pusok Gaisano -Lapu-LapuCity Roxas Ave., IliganCity G/F GaisanoCitiSuperMall Gaisano -Iligan Bulua Street,CagayanDeOroCity Gaisano -Bulua Legazpi City Embarcadero DeLegazpiMall Ground Level,Victory Village Embarcadero deLegazpi Pampanga Highway, Brgy. Anunas,AngelesCity G/F BesideUnitA,Fil-AmFriendship ECCO Building Dasmariñas, Cavite Campus, Inc.,CongressionalRoad De LaSalleUniversityHealth DLSU -HealthScienceCampus University, DBB-B,Dasmariñas,Cavite College ofEngineering,DeLaSalle DLSU -Dasmariñas China BankOff-Branch ATM Directory Malolos City, Bulacan McArthur Highway, Guinhawa G/F GracelandMall,BSUGrounds Malolos Tarlac City Romulo Boulevard,BarangayCut-Cut Upper G/F, MagicStarMall Magic Starmall Urdaneta City, Pangasinan Magic Mall,AlexanderSt.,Poblacion G/F cor. IttiShoes(Entrance B) Magic Mall MEPZ 1,Lapu-LapuCity, Cebu Ground FloorMactanMarinaMall Mactan MarinaMall Imus, Cavite G/F LotusCentralMall,NuenoAvenue Lotus CentralMall San Fernando,LaUnion Carlatan, McArthurHighway Lorma MedicalCenter National Highway, BacolodCity Burgos St.cornerCarlosHilado Lopue’s EastCenter Cagayan DeOroCity Ket KaiMall,LimDr. 1st LevelServiceArcadeM4-193BLim Lim KetKaiMall cor. SanJoseSt.,DumagueteCity G/F LeeSuperPlaza,M.Perdices Lee SuperPlaza Negros Oriental Bagacay, DumagueteCity G/F LeeHypermarket,Valencia Road Lee Hypermarket corner RizalSt.,LegazpiCity LCC Supermarket,Peñaranda LCC Peñaranda Zamboanga City Veteran’s Avenue Extension LB Supermarket-Zamboanga Serna Street,Lapu-Lapu,CebuCity La NuevaSupermart,Inc.,G.Y. Dela La NuevaSupermart Minglanilla, Cebu La NuevaSupermart,Poblacion La Nueva-Minglanilla Center, Inc.,Sudapin,KidapawanCity Kidapawan MedicalSpecialist KMSCI South Cotabato Avenue, GeneralSantosCity G/F KCCMall-GenSan,J.CatolicoSr. KCC Mall-GenSan Laguna Sta. Rosa-Tagaytay Road,Sta.Rosa G/F BldgB,Solenad3,Nuvali Nuvali Solenad3BldgB Tagaytay Road, Sta.Rosa,Laguna G/F Soledad2Nuvali,Sta.Rosa- Nuvali Solenad2 Maharlika Highway, CabanatuanCity Nueva EcijaDoctorsHospital No. 25GeneralLunaRoad,BaguioCity Notre DamedeChartresHospital Bantay, Vigan, IlocosSur Northside DoctorsHospital Dagupan City G/F NepoMall,ArellanoSt. Nepo Mall-Dagupan Nepo MartComplex,AngelesCity Doña Teresa Ave., cor. St.Joseph St. Nepo Mall-Angeles San Francisco,NagaCity P. Diazcor. EliasAngelesSt. Nagaland E-Mall Montilla Boulevard,ButuanCity MJS Hospital Tibanga Highway, IliganCity Mindanao SanitariumandHospital Airport Road,Lapu-LapuCity, Cebu MCIA-Domestic DepartureHall Airport Road,Lapu-LapuCity, Cebu MCIA-Domestic Check-InArea McArthur Highway, Matina,Davao G/F StripBldg.,MatinaTown Center Matina Town Square Pampanga Don BonifacioRoad,AngelesCity G/F ActivityCenterMarqueeMall Marquee Mall1 Agora, CagayanDeOroCity Market CityBuilding,BusTerminal Market City Don Domingo,Tuguegarao City Mariton Grocery-DonDomingo Cagayan Valley Buntun, Tuguegarao City Mariton Grocery Cagayan DeOro Hospital, T.J. HayesSt. Hospital Entrance,MariaReyna Maria ReynaHospital Tuguegarao City, Cagayan Enrile Boulevard,Carig RPGMC Tuguegarao cor. NinoyAquinoAve., CSEZ Manuel RoxasSt. Royce Hotel Zambales City Subic BayFreeportZone Royal DutyFree Lagao, GeneralSantosCity G/F Foodcourt,JoseCatolicoSr. Ave. Robinsons -GenSan San Miguel,Calasiao,Pangasinan Robinsons -Calasiao Bayombong, NuevaVizcaya PLT Building,DumlaoBoulevard Purisimo L.Tiam College Dau, Mabalacat,Pampanga Cosco Bldg.,McArthurHighway Puregold -Dau Manuel L.QuezonSts.,Baybay, Leyte Andres Bonifacio& Prince Mall-Baybay Session Road,BaguioCity Porta Vaga Mall Brgy. SanAntonio,Biñan,Laguna G/F BuildingAPavilionMall,Km.35 Pavilion Mall Nable St.,DagupanCity Pangasinan MedicalCenter F. ImperialSt.,LegazpiCity Landco BusinessPark Pacifi Legazpi City Street cor. CircumferentialRoad Landco BusinessPark,F. Imperial Pacifi Avenue, BayanLuma,Imus,Cavite G/F NearEmergencyRoom,Tamsui Our LadyofthePillar Ormoc City, Leyte - FarmersMedicalCenter Ormoc SugarcanePlantersAssociation OSPA -FMC Dasmariñas, Cavite Club Inc.,AguinaldoHighway Gate 2TheOrchardGolfandCountry Orchard GolfandCountryClub Sta. Rosa,Laguna Nuvali, Sta.Rosa-Tagaytay Road Hawkers Market,Solenad3 c Mall2 c Mall Nuvali SolenadHawkersMarket 195 Annual Report 2015 Walter Mart - Sta. Rosa 1 Mart - Sta. Rosa Walter Mall Center Upper G/F Waltermart Highway Entrance, National Road Balibago San Lorenzo Village, Sta. Rosa, Laguna Mart - Sta. Rosa 2 Walter Center, Upper G/F Waltermart Exit, San Between Goldilocks and Mall Road, Sta. Balibago Lorenzo Village, Rosa, Laguna Mart - Sta. Rosa Belair Walter Road Sta. Rosa-Tagaytay Sta. Rosa Laguna Belair, Mart - Tagaytay Walter Junction East Brgy. G/F Waltermart, Cavite City, Nasugbu Road, Tagaytay Mart - Tanauan Walter J.P. Laurel National Highway J.P. Batangas Darasa, Tanauan, Brgy. University Wesleyan Mabini Extension, Cabanatuan City Xavier University G/F Library Annex, Xavier University Cagayan De Oro City Corrales Ave., Starmall Yubenco Putik, Zamboanga City MCLL Highway, Zamboanga Peninsula Medical Center MCLL Putik Highway Putik, Zamboanga City Target Mall 1 Target Search, Sta. Rosa G/F near Star Balibago Brgy. Commercial Complex, Sta. Rosa, Laguna Mall 2 Target Sta. Rosa Canopy Area, ATM-04 Balibago Commercial Complex, Brgy. Sta. Rosa, Laguna The District Daang Hari cor. Aguinaldo Hi-Way Anabu Ii-D, Imus, Cavite Road, Brgy. The District - Dasmariñas Molino-Paliparan Road G/F, Dasmariñas, Cavite Union Christian College Ii Widdoes Street, Brgy. San Fernando, La Union City University of Baguio Assumption Road, Baguio City Benguet University of Bohol City Along Ma. Clara St., Tagbilaran University of Perpetual Help - Biñan Medical Building Doctor Jose Tamayo University Of Perpetual Help Biñan Sto. Niño, Biñan, Laguna Brgy. University of San Carlos Main University Building Del Rosario Street, Cebu City P. University of San Jose Recoletos - Basak N. Bacalso Ave. Basak, Pardo, Cebu City - Cabanatuan Mart Walter Barangay Dicarma, Maharlika Highway Cabanatuan, Nueva Ecija - Calamba Mart Walter Real, Calamba, Laguna Real St., Brgy. Mart - Carmona Walter Governor’s Macaria Business Center, Carmona, Cavite Drive, Mabuhay, Mart - Dasmariñas Walter Barrio Burol Aguinaldo Highway G/F, Dasmariñas, Cavite Mart - Gen. Trias Walter Cavite Drive, Gen. Trias, Governor’s Mart - San Fernando Walter San Agustin, McArthur Highway Brgy. San Fernando, Pampanga SM City - Clark SM City Clark, (Fronting # 1 ATM M. Roxas Street Terminal) Transport Pampanga City, CSEZ, Angeles SM City - Dasmariñas 2 Aguinaldo Ground Floor near Gen. E. Drive Highway Entrance, Governor’s Dasmariñas, Cavite Sampalok, Brgy. SM City - Davao Davao Center (1), SM City ATM Quimpo Boulevard, Ecoland Davao City Matina, Subdivision, Brgy. SM City - General Santos Miguel corner Santiago Blvd. & San Lagao, General Santos City St., Brgy. South Cotabato SM City - Lipa Terminal) 2 (Near Transport ATM Lipa City Highway, SM City Lipa, Ayala SM City - Marilao SM City Marilao, Marilao ATM-1 Bulacan SM Lanang Premier Laurel J.P. Upper Ground Floor, San Antonio Brgy. Avenue, Agdao District, Davao City SM Market Mall Dasmariñas Congressional Avenue, Bagong Bayan, Dasmariñas, Cavite SM Molino G/F SM Supercenter Molino Molino 4, Molino Road Brgy. Cavite Bacoor, SM Tarlac San Roque G/F McArthur Highway, City Tarlac SOCSARGEN County Hospital L. Arradaza St. Bula-Lagao Road cor. General Santos City Center Talisay South Town Cebu Talisay, Tabunok, Southway Mall Lim Purisima and Gov. cor. Magno Sts., Zamboanga City Sta. Rosa Hospital RSBS Blvd., Balibago, City of Sta. Rosa, Laguna Super Metro Carcar Carcar City N. Bacalso Avenue, China Bank Off-Branch ATM Directory ATM Bank Off-Branch China SAMULCO Purpose Cooperative Sta Ana Multi St., Davao City Bldg. 1, Monteverde San Fernandino Hospital Dolores, City of McArthur Highway, San Fernando, Pampanga Save Wise - Pozorrubio Cablong Caballero St., Brgy. Pozorrubio, Pangasinan Shopwise - Cebu Basak, San Nicolas N. Bacalso Ave., Cebu City Shopwise - San Pedro Landayan Brgy. National Highway, Pacita, San Pedro Skyrise Realty G/F Skyrise IT Building, Gorordo N. Escario St., Cebu City cor. Avenue 2 SM Batangas Covered Walk SM City Batangas, Pallocan West Batangas City SM City - Bacolod #3 G/F Building A, ATM SM City Bacolod, Reclamation Area Bacolod City SM City - Baguio Luneta Hill, Upper Session Road Governor Park Road, Baguio City cor. Benguet SM City - Baliwag Pagala Brgy. Highway, 2, DRT ATM Baliwag, Bulacan SM City - Batangas Sm City Batangas, Pallocan ATM-1 Batangas City West, SM City - Cabanatuan Maharlika Highway Center, ATM Cabanatuan SM City - Cagayan De Oro Center (2), Main Entrance ATM Cagayan De Oro SM City, SM City - Calamba 1 National Road Ground Floor, Laguna Real, Calamba City, Brgy. SM City - Calamba 2 National Road Second Floor, Laguna Real, Calamba City, Brgy. SM City - Calamba 3 Near Main Entrance, National Road Laguna Real, Calamba City, Brgy. 196 Annual Report 2015 (02) 352-3789/[email protected] Hokia C. Ann Sheryl (02) 366-8669/[email protected] Y. Macariola Jennifer 167 Rizal Avenue Extension, CaloocanCity KALOOKAN OFFICE (02) 247-8341/ [email protected] Genelin U. Yu (02) 241-1452 /[email protected] Tanlimco C. Irene corner Juan Luna,Binondo,Manila 6/F ChinaBank, Dasmarinas BINONDO OFFICE (02) 731-5554 /[email protected] Marzan D. Cathryn (02) 727-7645 /[email protected] Yap C. Hazel Glynn (02) 727-7884 /[email protected] Pantaleo G. Victoria Ma. San Juan, MetroManila 14 Ortigas Avenue, Greenhills GREENHILLS OFFICE PRIVATE BANKINGOFFSITEOFFICES [email protected] (02) 812-5320 Garcia M. Edwin Cesare [email protected] (02) 885-5641 Angela D. Cruz Philippines City, Makati Street, Villar corner Roxas de Paseo 8745 Building, Bank China 15/F MAKATI HEADOFFICE PRIVATE BANKINGGROUP Person:Contact (044) 464-0099 Email: [email protected] Fax (044)463-1063 No.: /600-1575 Tel. No.: Cabanatuan City, Nueva Ecija Brgy.2/F CBCBldg., Dicarma,MaharlikaHighway China Bank –Cabanatuan, MaharlikaBranch CBG CABANATUAN CENTER Center Head: (02)520-6161 Email: [email protected] Fax (043)723-7127 No.: /723-4294 Tel. No.: Batangas City P.3/F CBCBldg., BurgosStreet China Bank Branch -BatangasCity CBG BATANGAS CENTER Center Head: (034)435-0647 Email: [email protected] Fax (034)435-0250 No.: Tel. No.: Bacolod City Street 2/F CBCBldg., Araneta China Bank -Bacolod Araneta CBG BACOLOD CENTER CONSUMER BANKINGCENTERS Evelyn G.Ricardo Jasmin MaeE.DeLas Alas Emilie R.Gatdula n (045) 961-0486 /[email protected] Puno D. Cristina Ma. 2/F V. Tiomico St.,SanFernando City, Pampanga SAN FERNANDOOFFICE (02) 659-2464/[email protected] Claire L. Ramirez (02) 552-1682 /[email protected] Dennis G. Dee (02) 659-2463/[email protected] Sheila V. Sarmenta-Dayao Muntinlupa City Madrigal BusinessPark, Ayala Alabang 2/F UnitDCBCBuilding Acacia Ave. ALABANG OFFICE (02) 426-6980/[email protected] Jaydee Cheng-Tan 82 West Avenue, Quezon City QUEZON CITYOFFICE [email protected] (02) 885-5688 Von Baviera D. Eric [email protected] (02) 885-5697 Santos C. Grace [email protected] (02) 885-5693 Escolin G. Therese Center Head: (075) 522-8472 Email: [email protected] Fax (075)522-8471 No.: Tel. No.: Dagupan City PerezSiapno Bldg., Boulevard China Bank -Dagupan-Perez Branch CBG DAGUPAN CENTER Center Head: (032)346-4450 Email: [email protected] Fax No.: (032)416-1606; (032)346-4448 Tel. Nos.: cor. Panay Road, CebuBusinessPark, CebuCity 2/F CBCCorporateCenter, SamarLoop China Bank -CebuBusinessBranch CBG CEBUCENTER Center Head: (088)856-2409 Email: [email protected] Fax (08822)72-81-95 No.: Tel. No.: Lapasan, Cagayan deOro C.M.Recto2/F CBCBldg. Avenue China Bank -Cagayan deOro-Lapasan Branch CBG CAGAYAN DEORO CENTER Business Offi Michael B.Fernandez James Frances V. Paraon Rhea D.Matela ces Center Head: (045) 961-8351Email: [email protected] Fax No.: (045)961-5344; (045)961-0467 Tel. Nos.: Pampanga Sto. Rosario Poblacion, ofSanFernando City 2/F CBCBldg. V. Tiomico Street China Bank -SanFernando Branch CBG PAMPANGA CENTER Center Head: (033)336-7909 Email: [email protected] Fax No.: [email protected] (082) 297-6268 Benigno-Jamora Queen Mc Km. 4McArthurHighway, Matina,Davao City DAVAO OFFICE [email protected] (032) 415-5881; (032)239-3742 T. Guingona Rosemarie [email protected] (032) 415-5881; (032)239-3741 P. Ditan Caesar Kristian [email protected] (032) 415-5881; (032)239-3740 upto43 Rosales D. Eleanor Cebu BusinessPark, CebuCity SamarLoopCBC Building, cor. Panay Road CEBU OFFICE (034) 431-5549 /[email protected] J.Peornato Jo Marie Bacolod City Lacson cor. SanSebastianSts. Bacolod2/F CBCBuilding, BranchAraneta BACOLOD OFFICE (033)336-7918 Tel. No.: Brgy. Ortiz,IloiloCity RizalcornerGomezStreets 2/F CBCBldg. China Bank -Iloilo-RizalBranch CBG ILOILO CENTER Center Head: (082)222-5021 Email: [email protected] Fax No.: (082) (082)226-2103/ (082)221-4163 Tel. Nos.: corner J. RizalStreets,Davao City C.M.Recto2/F CBCBldg. China Bank -Davao-Recto Branch 222-5761 CBG DAVAO CENTER [email protected] (02) 885-5691 O. Chua Yvette [email protected] (02) 885-5643 W. Tua Karen
(033) 503-2845 Verna G.Guintu Marvin D.Celajes Renato C.Sanchez II 197 Annual Report 2015 BOARD OF DIRECTORS BOARD CHAIRMAN Ricardo R. Chua PRESIDENT D. Uyan, Jr. Romeo INDEPENDENT DIRECTORS Kuan F. Robert Yao S. Alberto DIRECTORS Antonio S. Espedido, Jr. Ramos V. Emilio Alberto Whang William C. SECRETARY CORPORATE Dagoy Divine Grace F. BOARD OF DIRECTORS BOARD CHAIRMAN Ricardo R. Chua VICE CHAIR Yang Nancy D. PRESIDENT Ramos V. Emilio Alberto INDEPENDENT DIRECTORS Kuan F. Roberto Juan L. San Margarita Yao S. Alberto DIRECTORS Carlos M. Borromeo Alexander C. Escucha Antonio S. Espedido, Jr. C. Gan Rosemarie R. Zamora Ramon SECRETARY CORPORATE D. Dumlao Edgar liates
nance, mergers Madaling Kausap Subsidiaries and Affi and Subsidiaries is the investment house is the investment began operations on began operations nance, CBS is able to service nance, CBS is able nancial advisory services to all public and nancial inclusiveness, and uplifting the quality of life of the quality of life and uplifting nancial inclusiveness, 9/F China Bank Building 9/F China Bank Villar St. corner de Roxas Paseo 8745 Philippines Makati City 1226, (632) 885-5009 No.: Tel. (632) 556-6712 No.: Fax China Bank Capital Corporation subsidiary of China Bank. This investment arm aims to provide arm aims to provide investment This subsidiary Bank. of China clients with a wide range of services that include debt and equity capital and underwriting, raising project fi private companies. China Bank’s Investment Banking Group Banking Investment China Bank’s companies. private Capital, issue manager, into China Bank acting as folds now or underwriterarranger landmark deals. in various VGP Center, 6772 Ayala Avenue Ayala 6772 Center, VGP Philippines Makati City 1226, 988-9555 (632) No.: Tel. www.cbs.com.ph and acquisitions, fi China Bank Savings, Inc. (CBS) Inc. China Bank Savings, of Manila Bank the acquisition September 8, 2008 following mergers with Unity Subsequent Bank in 2007. Bank China by bolstered CBS’ position have Bank and Planters Development 160 With over bank in the industry. largest thrift as the fourth retail for banking, and a strong platform nationwide branches enterprise fi auto, housing and consumer and Small and needs of the broader the growing to promoting It is committed Medium Enterprise (SME) market. fi with its consumers and entrepreneurs in line personalized brand of service.personalized 198 Annual Report 2015 VGP Center: (632) 751-6000 (632) Center: VGP Tel. No.: (632) 885-5555 Philippines 1226, City Makati Ave. Ayala Center, 6772 VGP 8/F 885-9458 885-5047: (632) No.: Fax 885-5060; 885-5051; 885-5052 Tel. Nos.: (632) 885-5053 885-5555; Philippines 1226, City Makati St. Villar corner Roxas de Paseo 8745 Building Bank China &15/F 4/F www.manulife-chinabank.com.ph :[email protected] E-mail 884-7000 (632) Line: Care Customer 845-0980 :(632) No. Fax 884-5433 Tel. :(632) No. 1226 Philippines City Makati Ave. Tower, LKG Ayala 6801 24/F Julieta P. Guanlao PRESIDENT Chinabank Insurance Brokers, Inc. (CIBI) Phillip M. Tan GENERAL MANAGER keep itsprocessingcapabilitiesintopshape. the safety andsoundnessof ChinaBank’s technology infrastructure and and hardware, fi developing softwarerequirements, includingsourcing, andmaintaining Bank group.ItmanagestheBank’s electronicbankingande-commerce April 14,1982 toprovide computer-related solelytotheChina services CBC Properties andComputer Center, Inc. (PCCI ) Robert D. Wyld PRESIDENT AND CHIEFEXECUTIVEOFFICER inManulifeto China 40% Bank Life. In2014, stakeand insurance needs. from 5% itsequity China raised Bank receives solution to possible thebest meet fi his orherindividual to China customers. Bank aimisto ensure The services client thatevery providingChina rangeof Bank, awide innovative insurance and products 2007, 23, March isastrategic Manulife alliance between and Philippines Corporation Assurance Life Bank China Manulife Marine, Accident andLiability. clients areavailable, with insurancecoverages such asProperty, Motor, category, programsfor residential,personal,corporateand industrial andCriticalIllnessCover.Hospitalization UndertheNon-Life insurance Endowment, Investment-Linked, Education, Term andLife Protection with non-life insurance. The life productsinclude insuranceretail Whole Life, customers, withawideandcomprehensive range ofplansfor life and brokerage. Itprovides andcorporate directinsurancebrokingfor retail onNovemberthe Bank established 3,1998 insurance asafullservice nancialsystems, accessdevices tofoster andnetworks is a wholly-owned subsidiary of isawholly-owned subsidiary Editha N. Young OFFICER CHIEF TECHNOLOGY was createdon , established on , established nancial 199 Annual Report 2015 cers Liability CASH MANAGEMENT SOLUTIONS Channel Delivery Online China Bank Liquidity Management Reporting Transaction & Balance Account Sure Sweep Disbursement (Outsourced) Check Plus Manager’s Write Check (Outsourced) Plus Corporate Check Write Check Plus (Software) Write Check IBFT) (Corporate Transfer Fund Corporate Inter-Bank Crediting Payroll TellerCard Software) (Payroll ChinaPay Processing Payroll (ACA) Arrangement Crediting Automatic BancNet): by (powered Payments eGovernment • Payments Tax Online BIR eFPS • Payment SSS Monthly Contribution and Loan • Philhealth Monthly Contribution Payments • Loan Monthly Contribution and Pag-IBIG Receivables Warehousing) Check Depot (Post-Dated Check Plus Bills Pay Over-the-Counter • ATM • Internet • Mobile • Phone • • by (POS) (Powered ATM China Debit Point-of-Sale Bills Pay BancNet ) BancNet) (ADA) Arrangement Debit Automatic Collection eGovernment SMEC) (SSS • Compensation Maternity / / Employee’s SSS Sickness PAYMENT & SETTLEMENT SERVICES PAYMENT Channels Electronic Banking TellerPhone • Machine Bank Teller (ATM) Automated China Bank China • Machine • Accept Version) and Mobile Online (Full China Bank Cash • (POS) Version) • (Beta Mobile Banking China Bank Point-Of-Sale • • Directors and Offi Insurance • and Health Accident – Medical Insurance - HMO Group – - Individual & Accident Personal FidelityCasualty Insurance, - Money – Insurance Travel Guarantee, Property Floater • All All Risks Insurance - Contractor’s (Judicial/Performance/Fidelity/ Insurance All Risk Risk (CAR) Insurance/Erector’s Bonds • etc.) Surety, Programs Insurance Specialized t Planning China Bank On-Time Remittance Products and Services Products INSURANCE PRODUCTS Bancassurance Endowment • and Income Protection Life Retirement • Cover Critical Illness with Life • Education • • Insurance Term • • - Linked Investment Insurance Group Life Receipts Insurance Non-Life Trust & • Commercial Fire Insurance - Residential, Insurance Aviation • • Motor Car Insurance • and Cargo Marine Insurance - Hull/Vessel • Electronic Equipment Insurance • Liability Insurance - Comprehensive etc. Products, General Liability, TREASURY SERVICES TREASURY Instruments Peso-Denominated • Instruments Dollar-Denominated Issues and Corporate Bond Government • Exchange Foreign Issues and Corporate Bond Government • Derivatives and Swaps Spot, Forward • and Cross Currency Interest Rates Swaps Project Finance Project Valuation Advisory / / Financial Acquisition Mergers & Restructuring/ Corporate Securitization SERVICES OVERSEAS KABABAYAN • Account Account Savings • Kababayan Overseas (OKs) Transfer • Money China Bank TRUST SERVICES Management Benefi Trust Corporate and Institutional Fund Employee Plan • Retirement Plan – Provident/Savings – Services – Escrow Trust Services • Collateral/Mortgage Agency • Loan • Trust Planning Management Wealth EstateLiving • • Trust • Insurance Life • Arrangement Management Investment – Advisory Investment Funds Trust Unit Investment – Agency Investment • Fund Market Money China Bank • Market Money Institutional China Bank Fund Fund Term • Short China Bank • Income Intermediate Fixed China Bank Fund • GS Fund China Bank • Fund Balanced China Bank • EquityChina Bank Fund • High Dividend EquityChina Bank Fund • Dollar Fund China Bank – Passbook Savings – Passbook Savings – ATM Savings – MoneyPlus Account – SSS Pensioner’s Time Deposit – Regular – Diamond Savings L.I.F.T. – Money – Savings – Time INVESTMENT BANKING SERVICES Bonds Debt Financing • • Loan Syndicated • Corporate Notes • Loan Structured Equity Financing (Common Shares) • Offering Initial Public (Common Shares) • On Offering Follow Shares • Preferred Shares • Convertible/Exchangeable INTERNATIONAL BANKING INTERNATIONAL PRODUCTS & SERVICES Import and Export Financing and Domestic Commercial Letters Foreign Credit of of Credit Standby Letters Collection of Clean and Documentary Bills GuarantyBank (Shipside Bond) Exchange and Sale of Foreign Purchase Funds Travel and Investments Servicing Loans Foreign of Inquiry Trade Facility Receipt Trust Services Banking Correspondent LOANS & CREDIT FACILITIES and Commercial Loans Corporate Loans Syndication Loan Receivables Factoring Programs Special Lending • BSP Rediscounting • Fund Industrial Guarantee Loan • Program Environmental Development • Sustainable Development Logistics • Industrial and Large Projects Guarantee Programs Consumer Loans • EstateHomePlus Real Loans • Contract to Sell Financing Loans Vehicle • AutoPlus Credit Cards • Mastercard Prime China Bank • Platinum Mastercard China Bank Mastercard World • China Bank DEPOSITS & RELATED SERVICES & RELATED DEPOSITS Deposits Peso Checking Plus – ChinaCheck Savings Time Euro and Deposits (USD, Currency Foreign Yuan) Draft Check/Demand Manager’s/Gift Deposit Box Safety US Pensioner Direct Deposit Facility for Night Depository Services ServicesCash Delivery and Deposit Pick-up Checks Out-of-town 200 Annual Report 2015 a o: (+632)403-2414 Fax No.: (+632)403-2410; 403-2412; 403-9853 Tel. No.: Ricardo D.Regala, Jr Antonio M.Laviña persons: Contact 1226,Makati City Philippines 6784 Ayala Avenue Unit 34-DRufi Stock Transfer Service, Inc. [email protected] [email protected] [email protected] Email: (+632)885-5135 Fax No.: (+632)885-5133 Tel. No.: Pamela D.Pablo Atty. Julius L.Danas Atty. Leilani B.Elarmo persons: Contact 1226,Makati City Philippines 8745 Paseo deRoxas corner Villar St. 11/F ChinaBank Building China Banking Corporation Offi Stocks andExternal Relations please getintouch with: status, change ofaddressorlostdamagedstock certifi For inquiriesorconcernsregardingdividendpayments, account SHAREHOLDER SERVICES 1226,Makati City Philippines 8745 Paseo deRoxas corner Villar Street Penthouse, ChinaBank Building May 5,2016, Thursday, p.m. 4:00 ANNUAL STOCKHOLDERS’MEETING ceoftheCorporateSecretary noPacifi c Tower . Investors Information cates, Makati City 1226Makati City Philippines 8745 Paseo deRoxas corner Villar Street China Bank Building www.twitter.com/chinabankph Twitter Page: www.facebook.com/chinabank.ph Facebook Page: [email protected] Email: (632)519-0143 Fax No: 1-800-3888-5888 (Digitel) 1-800-1888-5888 (PLDT) Domestic Toll-Free#s: Hotline #(632)88-55-888 China Bank Tellerphone (Available 7AM-10PM daily) Customer ExperienceManagementDivision Center Customer Contact Please contact: We welcome inquiriesfromcustomersandotherstakeholders. CUSTOMER INFORMATION Website: www.chinabank.ph [email protected] Email: (+632)885-5609 Tel. No.: 1226,Makati City Philippines 8751 Paseo deRoxas 28/F BDO Equitable Tower China Banking Corporation Investor &CorporateRelations Group Senior Vice President andHead Alexander C.Escucha at ChinaBank, pleasecontact: community. For information aboutthedevelopments We welcome inquiriesfrominvestors, analysts, andthefi INVESTOR INQUIRIES [email protected] Email: 1226,Makati City Philippines 8745 Paseo deRoxas corner Villar St. 11/F ChinaBank Building China Banking Corporation Vice President andCorporateSecretary Atty. Corazon I.Morando Board ofDirectorsmay sendletters to: to communicatewithany orallofthemembersChinaBank any Stockholders otherbank-relatedissuesofimportance. whowish tothemanagementofBank, stockholders’pertaining rights,or We welcome letters orallsuch communicationsonmatters nancial Post-consumer Recovered Fiber
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