WE F I ND WAYS.
2022 ANNUAL REPORT
FINANCIAL SUPPLEMENTS
BDO 2022 ANNUAL REPORT
FINANCIAL SUPPLEMENTS
Table of Contents
03 Our Purpose
Corporate Mission
Corporate Vision
Core Values
Corporate Profile
05 Financial Highlights
07 Report of the Board Audit Committee
to the Board of Directors
09 Statement of Management’s Responsibility
for Financial Statements
10
17
18
19
20
22
24
234
244
Report of Independent Auditors
Statements of Financial Position
Statements of Income
Statements of Comprehensive Income
Statements of Changes in Equity
Statements of Cash Flows
Notes to Financial Statements
Supplementary Management Discussion
Corporate Information
Our Purpose
Corporate Mission
To be the preferred bank in every market we serve.
Corporate Vision
To be the leading Philippine bank and financial services company that
empowers customers to achieve their goals and aspirations, combining our
entrepreneurial spirit, international perspective, and intense customer focus
to deliver a personalized banking experience that is easy, straightforward, and
convenient, while taking pride in building long-term relationships and finding
better ways to deliver offerings of the highest standard.
Core Values
Commitment to Customers. We are committed to delivering products and
services that surpass customer expectations in value and every aspect of
customer service, while remaining prudent and trustworthy stewards of
their wealth.
Commitment to a Dynamic and Efficient Organization. We are committed
to creating an organization that is flexible, responds to change, and
encourages innovation and creativity; we are committed to the process of
continuous improvement in everything we do.
Commitment to Employees. We are committed to our employees’ growth
and development and we will nurture them in an environment where
excellence, integrity, teamwork, professionalism, and performance are valued
above all else.
Commitment to Shareholders. We are committed to providing our
shareholders with superior returns over the long-term.
03
Corporate Profile
BDO is a full-service universal bank in the
Philippines, providing a complete array of
industry-leading products and services including
Lending (corporate and consumer), Deposittaking, Foreign Exchange, Brokering, Trust and
Investments, Credit Cards, Retail Cash Cards,
Corporate Cash Management and Remittances.
Through its local subsidiaries, the Bank offers
Investment Banking, Private Banking, Leasing and
Finance, Rural Banking, Life Insurance, Insurance
Brokerage, and Online and Traditional Stock
Brokerage services.
BDO’s institutional strengths and valueadded products and services hold the key
to its successful business relationships with
customers. Its branches remain at the forefront
of setting high standards as a sales and serviceoriented, customer-focused force. The Bank has
the largest distribution network with over 1,600
operating branches and more than 4,600 ATMs
nationwide. BDO has 16 international offices
(including full-service branch offices in Hong Kong
and Singapore) spread across Asia, Europe,
North America, and the Middle East.
The Bank also offers digital banking solutions to
make banking easier, faster, and more secure for
its clients.
Through selective acquisitions and organic
growth, BDO has positioned itself for increased
balance sheet strength and continued expansion
into new markets. As of December 31, 2022, BDO
is the country’s largest bank in terms of total
resources, customer loans, deposits, assets
under management and capital, as well as branch
and ATM network nationwide.
BDO is a member of the SM Group, one of
the country’s largest and most successful
conglomerates with businesses spanning
retail, mall operations, property development
(residential, commercial, hotels and resorts),
and financial services. Although part of a
conglomerate, BDO’s day-to-day operations are
handled by a team of professional managers
and bank officers. Further, the Bank has one
of the industry’s strongest Board of Directors,
composed of professionals with extensive
experience in various fields that include banking
and finance, accounting, law, and business.
04
Financial Highlights
Gross Customer Loans
Resources
2,614
2,264
2,400
2,208
2020
540
2020 2021
2022
270
461
3,221
2,821
360
5-Year CAGR
9.1%
425
450
2,610
2,485
2,420
2,121
2021 2022
(in billion Php)
8.7%
2,100
2018
Capital Funds
5-Year CAGR
2,800
2017
393
3,500
0
371
2019
328
2018
298
2017
(in billion Php)
180
90
700
0
2019
1,080
Deposit Liabilities
1,400
2,160
1,620
840
0
5-Year CAGR
8.3%
1,755
3,624
3,375
3,189
3,022
8.8%
2,668
1,680
2,700
5-Year CAGR
3,360
2,520
(in billion Php)
4,075
4,200
2,020
(in billion Php)
2017
2018
2019
2020
2021
2022
0
2017
2018
2019
2020
2021
2022
Net Income*
(in billion Php)
32.7
28.1
2022 NET INCOME
42.8
36
24
57.1
15.2%
P57.1 billion
28.2
48
5-Year CAGR
44.2
60
Up 33% YoY
12
0
*
2017
2018
2019
2020
2021
2022
attributable to shareholders of the parent bank
05
FINANCIAL & OPERATING HIGHLIGHTS
BALANCE SHEET (in billion Php)
Resources
Trading and Investment Securities
Liquid Assets
Gross Customer Loans
Deposits
Equity1/
INCOME STATEMENT (in billion Php)
Net Interest Income
Non-Interest Income
Gross Operating Income
Operating Expenses
Pre-provision Profit
Allowance for Credit Losses
Net Profit2/
FINANCIAL PERFORMANCE INDICATORS
Profitability
Return on Average Common Equity
Return on Average Equity
Return on Average Assets
Margins and Liquidity
Net Interest Margin
Gross Customer Loans to Deposit Ratio
Liquid Assets to Total Assets
Liquidity Coverage Ratio
Net Stable Funding Ratio
Cost Efficiency
Cost to Income Ratio
Cost to Average Assets Ratio
Asset Quality
NPL Ratio3/
NPL Cover4/
Capital and Leverage
CET 1 Ratio5/
Tier 1 Ratio5/
Capital Adequacy Ratio5/
Countercyclical Buffer6/
Basel III Leverage Ratio
Assets to Equity
DISTRIBUTION NETWORK AND MANPOWER
Branches and Offices
ATMs7/
Employees
Officers
Staff
SHAREHOLDER INFORMATION
Market Value
Share Price (in Php)8/
Market Capitalization (in billion Php)
Valuation
Basic Earnings per Share (in Php)8/
Diluted Earnings per Share (in Php)8/
Book Value per Share (in Php)8/
Price-Earnings Ratio
Price to Book Value
Dividends
Cash Dividends Paid to Common Shareholders
(in billion Php)
Cash Dividends per Common Share (in Php)9/
Stock Dividends Paid to Shareholders
Dividend Payout Ratio10/
Dividend Yield11/
CONSOLIDATED
PARENT BANK
2022
2021
Change
2022
2021
Change
4,074.7
722.8
1,392.3
2,613.8
3,220.9
461.5
3,623.7
616.3
1,168.2
2,400.2
2,820.9
424.5
12%
17%
19%
9%
14%
9%
3,900.3
606.8
1,265.8
2,537.6
3,141.0
459.9
3,466.0
498.0
1,037.9
2,351.6
2,751.7
423.5
13%
22%
22%
8%
14%
9%
149.2
71.5
220.8
131.2
89.6
16.4
57.1
131.3
61.4
192.7
119.9
72.8
17.1
42.8
14%
17%
15%
9%
23%
-4%
33%
139.9
50.1
190.0
104.1
85.9
15.6
57.0
123.9
40.6
164.5
93.6
70.9
16.8
42.7
13%
23%
16%
11%
21%
-7%
34%
13.0%
12.9%
1.5%
10.5%
10.4%
1.2%
13.0%
12.9%
1.5%
10.5%
10.4%
1.3%
4.1%
81.2%
34.2%
140.7%
123.9%
4.0%
85.1%
32.2%
145.4%
123.5%
4.1%
80.8%
32.5%
141.2%
123.5%
4.0%
85.5%
29.9%
145.9%
123.1%
59.4%
3.4%
62.2%
3.4%
54.8%
2.8%
56.9%
2.8%
1.9%
166.7%
2.8%
111.2%
1.9%
170.9%
2.7%
113.5%
13.4%
13.6%
14.5%
0.0%
9.8%
8.8x
13.6%
13.8%
14.7%
0.0%
10.3%
8.5x
12.8%
13.0%
14.0%
0.0%
9.4%
8.5x
13.1%
13.3%
14.2%
0.0%
9.9%
8.2x
1,652
4,655
39,323
20,275
19,048
1,544
4,484
38,873
19,805
19,068
7%
4%
1%
2%
0%
1,199
4,655
32,304
15,293
17,011
1,193
4,152
32,314
15,165
17,149
105.70
556.42
100.58
529.33
5%
5%
10.77
10.72
86.08
9.8x
1.2x
8.07
8.05
79.39
12.5x
1.3x
34%
33%
8%
9.9
5.3
9.9
5.3
2.20
20.0%
17.4%
1.8%
1.20
0.0%
12.3%
1.1%
1%
12%
0%
1%
-1%
Notes:
All financial data are based on SEC format unless otherwise indicated
1/
Total capital accounts, inclusive of non-controlling interest and preferred shares
2/
Net Income attributable to shareholders of the parent bank
3/
Per BSP Circular 941
4/
Per BSP Circular 1011
5/
Based on audited financial statements
6/
Currently set at 0% by the BSP per Circular 1024 Section 1
7/
On-site, off-site and mobile ATMs only, does not include Cash Accept Machines (CAMs) and Self-Service Teller Machines (STMs)
8/
2021 was adjusted to account for the 20% stock dividend paid-out on December 29, 2022
9/
Unadjusted for the 20% stock dividend paid in December 2022; 2022 includes a special cash dividend of Php1.00 per share
10/
Cash dividends paid during the year divided by net profit for the year
11/
Cash dividends per common share paid during the year divided by average daily closing price for the year
06
Financial Statements
Report of the Board Audit Committee
to the Board of Directors
FOR THE YEAR ENDED DECEMBER 31, 2022
Empowered by the Board to oversee the financial reporting process, internal control and risk
management systems, internal and external audit functions, and compliance with applicable
laws and regulations, the Board Audit Committee (BAC) discharged its oversight functions
independently in accordance with its Terms of Reference which is annually reviewed and updated,
when necessary. The BAC is composed of two (2) independent directors and one (1) non-executive
director, supported by five (5) advisors, four (4) of whom are either independent director (1) or
independent advisors (3). The BAC had thirteen (13) meetings in 2022.
In 2022, the BAC accomplished the following:
1. On financial reporting, the Board Audit Committee (BAC) reviewed and recommended for
approval to the Board the Bank’s quarterly unaudited and annual audited financial statements
ensuring compliance with accounting standards and tax regulations. On February 23, 2022, it
endorsed for approval of the Board the Bank’s audited financial statements as of December 31,
2021 including the Notes to the Financial Statements. This was approved by the Board on
February 24, 2022 and disclosed to the public on February 28, 2022, 59 days from the financial
year-end, following the best practice requirement of the ASEAN Corporate Governance
Scorecard (ACGS). It believes that the financial statements are fairly presented in conformity with
the relevant financial reporting standards in all material aspects. The related internal controls on
financial reporting process and compliance with accounting standards were likewise reviewed.
2. In overseeing the internal audit function, it reviewed and approved the 2022 and 2023 Internal
Audit risk-based audit plans after a thorough review of its scope, as well as changes to the
plan, audit methodology, budget, manpower resources and the appointments/assignments of
key audit officers during the year. It also reviewed and approved on April 20, 2022 the External
Quality Assessment Review Plan of the Internal Audit activities by the independent thirdparty assessor and reviewed the results of such assessment on August 17, 2022. It reviewed
audit reports focusing on high and moderate risk findings relating to operational, financial and
compliance controls including risk assessment systems with impact to financial, reputation
and information security. It regularly tracked the timely resolution of findings and asked for
Management’s action plans on items that needed to be addressed. It also assessed the
performance of the Chief Internal Auditor and the internal audit function. It ensured the Internal
Audit’s independence and unfettered access to all records, properties and information to be
able to fully carry out its function. The Committee is satisfied that the internal audit function has
adequate resources to perform its function effectively.
3. On external audit, it reviewed and approved the 2022 Audit Plans of the external auditor to
ensure the adequacy of its scope and coverage and appropriateness of the timelines. On
March 16, 2022, it approved and endorsed for approval of the Board the engagement with the
Bank’s external auditor for its non-audit role as Board of Canvassers in the voting in the bank’s
07
Annual Stockholders Meeting on April 22, 2022. It reviewed and discussed the content of the
engagement letter, scope of work, composition of engagement team among others, prior to the
commencement of the non-audit work. It comprehensively discussed the external audit reports,
focusing on internal controls, risk management, governance and matters with financial impact
particularly on the changes in accounting and reporting standards. It reviewed Management’s
Letter as well as Management’s response and action taken on the external auditor’s findings
and recommendations.
4. In overseeing the compliance function, it reviewed and approved the new internal work
Guidelines, revisions to the Money Laundering and Terrorist Financing Prevention Program
(MTPP) Manual, annual compliance plans, and independent compliance testing roadmaps of
the Compliance and Anti-Money Laundering (AML) departments. It monitored the progress and
reviewed the status of the annual compliance plans, results of the independent compliance
and AML testing, timely submission of regulatory and prudential reports, compliance to
mandatory ratios, as well as continuous improvement of the compliance and AML systems. It
conducted the annual appraisal of the performance of the Chief Compliance Officer for 2021. It
discussed in detail the Bangko Sentral ng Pilipinas and Anti-Money Laundering Council Reports
of Examination including the results of regulatory examinations of the Bank’s foreign subsidiaries
and reviewed Management’s replies and its periodic updates to the regulators, thereby ensuring
implementation of corrective actions. It also reviewed and provided guidance to Management
in its replies to concerns of the regulators to ensure that the Bank’s position is appropriately
presented. It approved on September 21, 2022 the second Money Laundering/ Terrorism
Financing Institutional Risk Assessment (IRA) of the Bank for the year 2020 and the 2021 Money
Laundering/Terrorism Financing Risk Assessment (MRAS) of the Bank. It approved and endorsed
for approval of the Board of Directors on June 22, 2022 the expanded Table of Organization of
the group that provides additional manpower complement to address the increasing compliance
risk management tasks of the group.
Reports on cases in operations, whistle blower accounts as well as non-loan related cases with
impact to financials, internal controls, information systems and reputation were deliberated on
focusing on risk assessment, legal handling, and fraud prevention.
As part of its commitment to excellent corporate governance, the Committee conducted a selfassessment for its 2021 performance based on its Terms of Reference. The BAC likewise evaluated
the performance of Internal Audit, Compliance and AML departments, and External Audit to ensure
their effectiveness and achievement of their objectives.
The BAC reports its evaluation of the effectiveness of the internal controls, financial reporting
process, risk management systems of the Bank, based on the report and unqualified opinion
obtained from the External Auditor, the overall assurance provided by the Chief Internal Auditor
and additional reports and information requested from Senior Management, and found these to be
generally adequate across BDO.
08
Statement of Management’s Responsibility for
Financial Statements
The management of BDO Unibank, Inc. and Subsidiaries (the BDO Unibank Group) and of BDO Unibank,
Inc. (the Parent Bank) is responsible for the preparation and fair presentation of the financial statements
including the schedules attached therein, for the years ended December 31, 2022, 2021 and 2020, in
accordance with the prescribed financial reporting framework indicated therein, and for such internal control
as management determines is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the BDO Unibank Group and
the Parent Bank’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends to liquidate the
BDO Unibank Group and the Parent Bank or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is responsible for overseeing the BDO Unibank Group and the Parent Bank’s financial
reporting process.
The Board of Directors reviews and approves the financial statements including the schedules attached
therein, and submits the same to the stockholders or members.
Punongbayan & Araullo, the independent auditor appointed by the stockholders, has audited the financial
statements of the BDO Unibank Group and the Parent Bank in accordance with Philippine Standards on
Auditing, and in its report to the stockholders or members, has expressed its opinion on the fairness of
presentation upon completion of such audit.
Teresita T. Sy
Chairperson of the Board
Nestor V. Tan
President &
Chief Executive Officer
Dalmacio D. Martin
Treasurer
Signed this 24th day of February 2023
09
Punongbayan & Araullo
20th Floor, Tower 1
Report of Independent Auditors
The Enterprise Center
6766 Ayala Avenue
1200 Makati City
Philippines
T +63 2 8988 2288
Report of Independent Auditors
THEBoard
BOARD
DIRECTORS
AND STOCKHOLDERS
The
of OF
Directors
and Stockholders
BDO UNIBANK, INC.
BDO Unibank, Inc.
BDO Corporate Center
BDO Corporate Center
7899 Makati Avenue, Makati City
7899 Makati Avenue, Makati City
a
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of BDO Unibank, Inc. and subsidiaries (collectively
referred to as the BDO Unibank Group) and of BDO Unibank, Inc. (the Parent Bank), which
comprise the statements of financial position as at December 31, 2022 and 2021, and the
statements of income, statements of comprehensive income, statements of changes in equity
and statements of cash flows for each of the three years in the period ended
December 31, 2022, and notes to financial statements, including a summary of significant
accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects,
the financial position of the BDO Unibank Group and of the Parent Bank as at
December 31, 2022 and 2021, and their financial performance and their cash flows for each of
the three years in the period ended December 31, 2022 in accordance with Philippine Financial
Reporting Standards (PFRS).
Basis for Opinion
We conducted our audits in accordance with Philippine Standards on Auditing (PSA). Our
responsibilities under those standards are further described in the Auditors’ Responsibilities
for the Audit of the Financial Statements section of our report. We are independent of the
BDO Unibank Group and of the Parent Bank in accordance with the Code of Ethics for
Professional Accountants in the Philippines (Code of Ethics) together with the ethical
requirements that are relevant to our audits of the financial statements in the Philippines,
and we have fulfilled our other ethical responsibilities in accordance with these requirements
and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Certified Public Accountants
Punongbayan & Araullo (P&A) is the Philippine member firm of Grant Thornton International Ltd.
grantthornton.com.ph
Offices in Cavite, Cebu, Davao
BOA/ PRC Cert of Reg. No. 0002
SEC Accreditation No. 0002
10
-2-
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
The following are the key audit matters identified in our audit of the financial statements of
the BDO Unibank Group and the Parent Bank:
(a) Valuation of Loans and Other Receivables
Description of the Matter
The BDO Unibank Group and the Parent Bank are required to recognize allowance for
impairment on their loans and other receivables using the expected credit loss (ECL)
model in accordance with PFRS 9, Financial Instruments. As of December 31, 2022, the
BDO Unibank Group and the Parent Bank had loans and other receivables amounting to
P2,696,901 million and P2,621,221 million, respectively, net of allowance for impairment
of P76,360 million and P74,000 million, respectively. Loans and other receivables are the
most significant resources of the BDO Unibank Group and the Parent Bank which account
for 66% and 67% of the BDO Unibank Group and the Parent Bank’s total resources,
respectively.
The allowance for impairment of loans and other receivables is considered to be a matter
of significance as it requires the application of critical management judgment and use of
subjective estimates in determining how much impairment loss is required to be recognized
in the financial statements. These judgment and estimates are disclosed in the BDO
Unibank Group’s and the Parent Bank’s accounting policies in Notes 2 and 3 to the
financial statements.
The BDO Unibank Group and the Parent Bank use an ECL model in determining the
impairment of their loans and other receivables. The assessment of credit risk of a portfolio
of assets entails estimations as to the likelihood of defaults occurring, the associated loss
ratios and of default correlations of the related counterparties. Furthermore, the BDO
Unibank Group and the Parent Bank incorporated forward-looking information into both the
assessment of whether the credit risk of an instrument has increased significantly from its
initial recognition and the measurement of ECL. The BDO Unibank Group and the Parent
Bank have identified and documented key drivers of credit risk and credit losses for each
loan portfolio and, using an analysis of historical data, have estimated relationships between
macro-economic variables, credit risk and credit losses.
The significant judgments applied and the subjectivity of estimates used by management
have further heightened due to the unprecedented impact of COVID-19 pandemic to the
BDO Unibank Group’s and the Parent Bank’s loans and receivables. Further, BDO Unibank
Group and the Parent Bank consider the current and forecasted macroeconomic variables in
determining the appropriate overlay and in updating the probability of default and loss given
default. Accordingly, the BDO Unibank Group and the Parent Bank have recognized in 2022
impairment losses on loans and other receivables amounting to P16,414 million and
P15,665 million, respectively, based on the ECL model used by the BDO Unibank Group and
the Parent Bank by considering the current credit status of the loans and receivables and the
potential delinquencies brought about by the current economic condition.
11
The disclosures of the BDO Unibank Group and the Parent Bank on the allowance for
impairment of loans and other receivables, and the related credit risk are included in
Notes 4 and 11 to the financial statements.
How the Matter was Addressed in the Audit
Our audit procedures to address the risk of material misstatement relating to the adequacy
of allowance for impairment of loans and other receivables, which was considered to be a
significant risk, included:
•
testing the design and operating effectiveness of relevant general and application
controls across the processes, as assisted by our own Information Technology
specialists, over the loan classification into stages, and the calculation and recognition
of the allowance for impairment;
•
evaluating appropriateness of the BDO Unibank Group’s and the Parent Bank’s credit
policy and loan impairment process as approved by the Board of Directors;
•
on a sample basis, evaluating the appropriateness of the credit risk ratings of loans to
assess appropriateness of credit risk monitoring;
•
assessing the appropriateness of the BDO Unibank Group’s and the Parent Bank’s
design of the ECL impairment model;
•
evaluating the inputs and assumptions, as well as the formulas used in the
development of the ECL models for each of the loan portfolio. This includes assessing
the completeness and appropriateness of the formula and inputs used in determining
the probability of default, loss given default and exposure at default;
•
for forward-looking information used, evaluating whether the forecasted
macro-economic factors, which include gross domestic product growth, unemployment
rates and core inflation rates were appropriate. In addition, assessing the level of
significance of correlation of selected macro-economic factors to the default rates as
well as the impact of these variables to the ECL;
•
assessing the borrowers’ repayment abilities by examining payment history for selected
loan accounts; and,
•
on selected non-performing loan accounts, evaluating the management’s forecast of
recoverable cash flows based on agreed restructuring agreement, actual payment
pattern after the restructuring, valuation of collaterals and estimates of recovery from
other sources of collection.
12
(b) Valuation of Financial Instruments
Description of the Matter
In general, the fair valuation of the financial instruments of the BDO Unibank Group and the
Parent Bank is computed with reference to external sources and readily available market
value. The fair valuation of financial instruments of the BDO Unibank Group and the
Parent Bank is considered a key area of focus in our audit due to the use of inputs from
external sources in computing the market value of some financial instruments with no
readily available market value. To the extent practicable, certain financial instruments are
measured using models with observable data; however, areas such as credit risk (both own
and counterparty), volatilities and correlations require management to make estimates.
As of December 31, 2022, the derivative financial assets and derivatives with negative fair
values of the BDO Unibank Group that are carried at fair value amounted to P8,613 million
and P7,809 million, respectively, while that of the Parent Bank amounted to P3,468 million
and P3,636 million, respectively. The debt and equity investments at Level 2 and Level 3
amounted to P6,224 million for the BDO Unibank Group and P482 million for the Parent
Bank.
The disclosures of the BDO Unibank Group and the Parent Bank on exposure to financial
instruments valuation risk are included in Note 4 to the financial statements.
How the Matter was Addressed in the Audit
Our audit procedures, included among others, the following:
•
testing of design and operating effectiveness of relevant controls over the valuation
process including the valuation method and assumption used by the BDO Unibank
Group and the Parent Bank on the financial instruments, particularly the measurement
of derivative financial instruments as assisted by our own Information and Technology
specialists.
•
evaluating whether fair value prices used were appropriate by testing the inputs against
reliable market sources;
•
recomputing the fair values based on the inputs and compared with the market values
reported by the BDO Unibank Group and the Parent Bank; and,
•
reviewing the appropriateness of the method used in fair market valuation.
(c) Carrying Value of Goodwill and Other Intangible Assets with Indefinite Useful Lives
Description of the Matter
The BDO Unibank Group has goodwill of P4,535 million, with allowance for impairment of
P1,514 million, as of December 31, 2022, and the significant portion of which relates to
the acquisition of BDO Network Bank, Inc. (BDO Network). Furthermore, the BDO Unibank
Group and the Parent Bank have other intangible assets with indefinite useful lives
amounting to P3,525 million and P3,522, respectively.
13
This annual impairment testing of goodwill and other intangible assets with indefinite useful
lives for impairment is considered to be a key audit matter because the management’s
process in assessing the recoverability of the intangible assets is complex. In addition,
the assumptions used in determining the cash generating units (CGUs) where the goodwill
and other intangible assets with indefinite useful lives are allocated and estimating the
recoverable amount involves significant judgment. The recoverable amount of the CGUs
has been computed using discounted cash flows method. This valuation method uses
several key assumptions, including estimates for forecasted statement of financial position
and net profit of CGUs, terminal value growth rates and discount rate.
The BDO Unibank Group’s disclosures about goodwill and other intangible assets are
included in Notes 2, 3 and 15 to the financial statements.
How the Matter was Addressed in the Audit
Our audit procedures to address the risk of material misstatement relating to impairment
of goodwill and other intangible assets with indefinite useful lives included, among others,
evaluating the appropriateness of assumptions and methodologies used by the
management, in particular, those relating to the forecasted statement of financial position
and statement of income as well as the discount and growth rates used. We have involved
our Firm valuation specialist to assist in evaluating the appropriateness of assumptions
used in estimating the recoverable amount of CGUs. In addition, we recalculated the
value-in-use of the CGUs and compared it with the carrying amount. We also reviewed the
BDO Unibank Group’s disclosures about those assumptions to which the outcome of the
impairment test is most sensitive; specifically, those that have the most significant effect on
the determination of the recoverable amount of goodwill and other intangible assets with
indefinite useful lives. Furthermore, our audit of the financial statements of BDO Network
as of and for the year ended December 31, 2022 did not identify events or conditions that
may cast significant doubt on BDO Network’s ability to continue as a going concern.
Other Information
Management is responsible for the other information. The other information comprises the
information included in the BDO Unibank Group’s Securities and Exchange Commission (SEC)
Form 20-IS (Definitive Information Statement) and SEC Form 17-A, and Annual Report for the
year ended December 31, 2022, but does not include the financial statements and our auditors’
report thereon. The SEC Form 20-IS (Definitive Information Statement), SEC Form 17-A and
Annual Report for the year ended December 31, 2022 are expected to be made available to us
after the date of this auditors’ report.
Our opinion on the financial statements does not cover the other information and we will not
express any form of assurance conclusion thereon.
In connection with our audits of the financial statements, our responsibility is to read the other
information identified above when it becomes available and, in doing so, consider whether the
other information is materially inconsistent with the financial statements or our knowledge
obtained in the audits, or otherwise appears to be materially misstated.
Responsibilities of Management and Those Charged with Governance for the
Financial Statements
Management is responsible for the preparation and fair presentation of the financial
statements in accordance with PFRS, and for such internal control as management determines
is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
14
In preparing the financial statements, management is responsible for assessing the BDO
Unibank Group’s and the Parent Bank’s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting
unless management either intends to liquidate the BDO Unibank Group and the Parent Bank
or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the BDO Unibank Group’s and
the Parent Bank’s financial reporting process.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with PSA will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with PSA, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
•
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the BDO Unibank Group’s and the Parent Bank’s internal
control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
•
Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the BDO Unibank
Group’s and the Parent Bank’s ability to continue as a going concern. If we conclude that
a material uncertainty exists, we are required to draw attention in our auditors’ report to
the related disclosures in the financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditors’ report. However, future events or conditions may cause the
BDO Unibank Group and the Parent Bank to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
•
Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the BDO Unibank Group and the Parent Bank to
express an opinion on the financial statements. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our
audit opinion.
15
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditors’
report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
Our audits were conducted for the purpose of forming an opinion on the basic financial
statements taken as a whole. As discussed in Note 31 to the financial statements, the Parent
Bank presented the supplementary information required by the Bureau of Internal Revenue
(BIR) under Revenue Regulations (RR) No. 15-2010 in a supplementary schedule filed
separately from the basic financial statements. RR No. 15-2010 requires the supplementary
information to be presented in the notes to the financial statements. The supplementary
information for the years ended December 31, 2022 and 2021 required by the Bangko Sentral
ng Pilipinas (BSP) as disclosed in Note 35 to the financial statements is presented for purposes
of additional analysis. Such supplementary information required by BIR and BSP is the
responsibility of management. The supplementary information is not a required part of the
basic financial statements prepared in accordance with PFRS; it is neither a required disclosure
under the Revised Securities Regulation Code Rule 68 of the SEC.
The engagement partner on the audits resulting in this independent auditors’ report is
Romualdo V. Murcia III.
PUNONGBAYAN & ARAULLO
By: Romualdo V. Murcia III
Partner
CPA Reg. No. 0095626
TIN 906-174-059
PTR No. 9566639, January 3, 2023, Makati City
SEC Group A Accreditation
Partner - No. 95626-SEC (until financial period 2026)
Firm - No. 0002 (until Dec. 31, 2024)
BIR AN 08-002511-022-2022 (until Oct. 13, 2025)
Firm’s BOA/PRC Cert. of Reg. No. 0002 (until Aug. 27, 2024)
February 24, 2023
16
Statements of Financial Position
BDO UNIBANK, INC. AND SUBSIDIARIES
DECEMBER 31, 2022 AND 2021
BDO UNIBANK, INC. AND SUBSIDIARIES
(Amounts in Millions of Philippine Pesos)
STATEMENTS OF FINANCIAL POSITION
DECEMBER 31, 2022 AND 2021
( Am ou n ts i n M i lli on s of P h i li p p i n e P e s os )
BDO Unibank Group
2022
2021
Notes
Parent Bank
2022
2021
RESOURCES
P
82,944
P
80,666
CASH AND OTHER CASH ITEMS
8
DUE FROM BANGKO SENTRAL NG PILIPINAS
8
385,779
304,906
382,210
302,660
DUE FROM OTHER BANKS - Net
9
58,766
70,092
51,055
64,349
TRADING AND INVESTMENT SECURITIES - Net
10
722,830
616,261
606,789
497,963
LOANS AND OTHER RECEIVABLES - Net
11
2,696,901
2,450,903
2,621,221
2,399,983
12, 13
46,471
44,807
42,394
41,586
INVESTMENT PROPERTIES - Net
14
21,158
18,795
13,173
11,263
OTHER RESOURCES - Net
15
59,859
48,880
102,815
81,762
PREMISES, FURNITURE, FIXTURES
AND EQUIPMENT - Net
TOTAL RESOURCES
P
69,105
P
66,440
P
4,074,708
P
3,623,749
P
3,900,323
P
3,466,006
P
3,220,883
P
2,820,896
P
3,141,016
P
2,751,715
LIABILITIES AND EQUITY
DEPOSIT LIABILITIES
17
BILLS PAYABLE
18
198,891
204,431
INSURANCE CONTRACT LIABILITIES
20
64,363
65,328
OTHER LIABILITIES
21
129,114
108,546
110,536
94,656
3,613,251
3,199,201
3,440,424
3,042,545
459,332
2,125
422,934
1,614
461,457
424,548
Total Liabilities
EQUITY
Attributable to:
Shareholders of the Parent Bank
Non-controlling Interests
TOTAL LIABILITIES AND EQUITY
188,872
196,174
-
-
22
P
4,074,708
P
3,623,749
-
459,899
-
459,899
P
3,900,323
423,461
423,461
P
3,466,006
S e e N ot e s t o F i n a n c i a l S t a t e m e n t s .
See Notes to Financial Statements.
17
18
BDO UNIBANK, INC. AND SUBSIDIARIES
STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020
17,063
16,366
10.77
10.72
P
P
Basic
Diluted
32
57,234
P
Earnings Per Share:
57,054
180
P
Attributable to:
Shareholders of the Parent Bank
Non-controlling Interests
57,234
P
NET PROFIT
8.05
8.07
42,855
42,791
64
P
P
P
P
P
P
5.30
5.30
28,254
28,246
8
28,254
17,776
46,030
112,640
55,210
103,460
30,240
29,661
511
68
133,700
23,331
157,031
2020
(
P
P
S e e N ot e s t o F i n a n c i a l S t a t e m e n t s .
See Notes to Financial Statements.
P
P
P
P
42,855
12,907
15,959
TAX EXPENSE
31
55,762
119,875
131,208
25
OTHER OPERATING EXPENSES
73,193
61,354
71,535
25
OTHER OPERATING INCOME
PROFIT BEFORE TAX
114,283
132,866
NET INTEREST INCOME
AFTER IMPAIRMENT LOSSES
21
14, 15
10, 11
P
16,942
93
28
16,564
203 )
5
(
IMPAIRMENT LOSSES (RECOVERIES) - Net
Financial Assets
Non-financial Assets
Others
16
131,346
144,879
149,232
P
NET INTEREST INCOME
169,071
BDO Unibank Group
2021
13,533
24
INTEREST EXPENSE
P
2022
19,839
23
INTEREST INCOME
Notes
BDO UNIBANK, INC. AND SUBSIDIARIES
( Am ou n ts i n M i lli on s of P h i li p p i n e P e s os E x c e p t P e r S h a re Da ta )
FOR THE YEARS ENDED DECEMBER 31, 2022, 2021
AND 2020
(Amounts in Millions of Philippine Pesos Except Per Share Data)
Statements of Income
56,993
13,333
70,326
104,119
50,129
124,316
15,588
15,815
232 )
5
139,904
18,728
158,632
2022
P
P
42,681
11,378
54,059
93,613
40,635
107,037
16,829
16,745
56
28
123,866
12,906
136,772
Parent Bank
2021
P
P
28,606
16,282
44,888
90,067
37,254
97,701
29,596
29,037
491
68
127,297
22,400
149,697
2020
19
-
47,373
P
(
(
(
P
P
P
P
37,045
37,028
17
37,045
5,810 )
146 )
135
6,022 )
55
5,686
5,664 )
275 )
87 )
5,756 )
92
5,394 )
42,855
(
(
(
(
(
P
P
P
P
-
2020
27,529
27,505
24
27,529
725 )
4,735 )
579
756
6,070 )
4,010
43 )
37
4,054
44 )
4,060
28,254
See Notes to Financial Statements.
S e e N ot e s t o F i n a n c i a l S t a t e m e n t s .
47,265
108
P
Attributable to:
Shareholders of the Parent Bank
Non-controlling Interests
47,373
9,861 )
8,025
498 )
1,097 )
P
(
(
10
(
(
17,886 )
(
(
9,620
(
(
(
11
67
17,881 )
5)
(
(
57,234
BDO Unibank Group
2021
17,959 )
(
26
20
10
10
P
2022
TOTAL COMPREHENSIVE INCOME
Other Comprehensive Income (Loss), net of tax
Items that will not be reclassified to profit or loss:
Remeasurement on life insurance reserves
Actuarial gain (losses) on remeasurement of retirement
benefit obligation, net of tax
Reversal of revaluation increment
Unrealized gains (losses) on equity investments at
FVOCI, net of tax
Items that are or will be reclassified subsequently to profit or loss:
Net unrealized gains (losses) on debt investments at fair value through other
comprehensive income (FVOCI), net of tax
Transfer of realized losses (gains) on disposed debt investments at FVOCI to
statements of income, net of tax
Impairment losses (recoveries) on debt investments at FVOCI
Net gains (losses) on FVOCI securities, net of tax
Translation adjustment related to foreign operations
OTHER COMPREHENSIVE INCOME (LOSS)
NET PROFIT
Notes
BDO UNIBANK, INC. AND SUBSIDIARIES
STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020
FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND
2020
( Am ou n ts i n M i lli on s of P h i li p p i n e P e s os )
(Amounts in Millions of Philippine Pesos)
BDO UNIBANK, INC. AND SUBSIDIARIES
Statements of Comprehensive Income
(
(
(
P
-
(
47,199
9,794 )
8,021
498 )
1,101 )
9,620
17,815 )
(
(
17,883 )
56,993
11
67
17,805 )
10 )
(
P
2022
(
(
(
(
(
(
(
(
P
P
36,925
5,756 )
129 )
135
6,005 )
55
5,686
5,627 )
275 )
87 )
5,727 )
100
5,365 )
42,681
Parent Bank
2021
(
(
(
(
(
P
P
-
2020
27,859
747 )
4,739 )
579
752
6,070 )
3,992
52 )
37
4,052
60 )
4,067
28,606
20
8,773
P
P
P
P
1,030
-
-
-
BALANCE AT DECEMBER 31, 2020
-
-
-
30
Other adjustments
Change in ownership interest in subsidiaries
-
-
-
-
-
-
-
-
-
-
-
-
-
-
P
P
P
P
P
-
-
-
-
-
-
-
5,150
5,150
5,150
5,150
6,180
1,030
P
Disposals of equity securities classified as FVOCI
43,842
-
-
22, 28
22
22
22
Transfer from Surplus Free
Trust reserve
Reversal of appropriation
Appropriation of excess GLLP over ECL
Other reserves
-
-
28
-
-
28
Total comprehensive income (loss)
Issuance of shares during the year
Options transferred during the year
Options expensed during the year
Cash dividends
26.3
43,814
P
22
BALANCE AT JANUARY 1, 2020
Transactions with owners
43,855
P
BALANCE AT DECEMBER 31, 2021
-
-
-
P
-
-
Disposals of equity securities classified as FVOCI
-
-
22, 28
22
22
-
-
13
Transfer from Surplus Free
Trust reserve
Appropriation of excess GLLP over ECL
Other reserves
-
-
26.3
-
Total comprehensive income (loss)
Issuance of shares during the year
Options transferred during the year
Options expensed during the year
Cash dividends
P
-
13
43,842
P
BALANCE AT JANUARY 1, 2021
22
BALANCE AT DECEMBER 31, 2022
Transactions with owners
52,641
-
P
2.3
-
Other adjustments
Additional capital contribution to a subsidiary
-
-
-
Disposals of equity securities classified as
fair value through other comprehensive income (FVOCI)
22, 28
22
22
22
-
-
-
-
8,786
-
-
Transfer from Surplus Free
Trust reserve
Reversal of appropriation
Appropriation of excess GLLP over ECL
Other reserves
-
-
13
-
26.3
22
5,150
P
P
43,855
Preferred Stock
Common Stock
Total comprehensive income (loss)
Issuance of shares during the year
Options transferred during the year
Options expensed during the year
Stock dividends
Cash dividends
Transactions with owners
BALANCE AT JANUARY 1, 2022
Notes
124,327
278
278
124,049
124,447
120
120
124,327
229,946
105,499
105,368
131
124,447
Additional
Paid-in Capital
(
P
P
P
P
( P
(
P
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Treasury
Shares at cost
1)
1)
(
(
(
(
(
1) (
(
P
P
P
P
P
P
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
17,964
660 )
272
209 )
830 )
107
262
92 )
354
18,362
19,930
1,649
263
1,337
49
P
P
29
17
17
12
29
29
76 )
105 )
29
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
P
P
P
P
P
P
-
-
-
-
(
214,525
5)
5)
1,109 )
660
272 )
209
830
107 )
28,246
5,600 )
5,600 )
192,333
249,743
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
( P
4,008
1,115
4,634
( P
1,741 ) ( P
1,630 ) ( P
43 )
5,595 ) (
4,008
19,950 ) ( P
17 )
18,303 ) (
1,630 ) ( P
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,459 )
765
11,224 )
16,454 )
5,995 )
10,459 )
17,566 )
1,112 )
16,454 )
P
P
P
P
P
P
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
955
955
1,010
55
955
1,010
1,010
Revaluation
Increment
( P
(
( P
( P
( P
P
( P
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(
P
P
P
P
8,859 ) ( P
6,070 ) (
2,789 )
3,173 )
5,686
8,859 ) ( P
6,447
9,620
3,173 )
Remeasurement on
Life Insurance
Reserves
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
( P
( P
( P
(
49 ) ( P
60 ) (
11
43
92
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10 )
10 )
16 )
6)
10 )
5)
11
16 )
Accumulated
Share in Other
Comprehensive
Income (Loss)
of Associates
49 ) ( P
38
5)
43
Accumulated
Translation
Adjustment
See Notes to Financial Statements.
P
( P
( P
P
( P
(
(
( P
322 ) (
1,649 )
263 )
1,337 )
49 )
42,791
5,602 )
5,602 )
214,525
178,537
17
2,854 )
251 )
14
2,475 )
142 )
57,054
125,423 )
115,171 )
10,252 )
249,743
Surplus Free
Se e N ote s to F i n a n c i a l Sta te m e n ts .
-
-
-
-
-
-
-
-
-
-
-
317
-
-
-
-
-
-
44
273
P
P
( P
(
P
Other Reserves
-
17,964
22,131
2,854
251
14 )
2,475
142
653 )
947 )
294
19,930
Surplus Reserves
Accumulated
Actuarial
Losses
BDO Unibank Group
Net Unrealized
Fair Value
Gains (Losses) on
FVOCI
( Am ou n ts i n M i lli on s of P h i li p p i n e P e s os )
BDO UNIBANK, INC. AND SUBSIDIARIES
STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020
BDO UNIBANK, INC. AND SUBSIDIARIES
FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020
(Amounts in Millions of Philippine Pesos)
Statements of Changes in Equity
(
(
(
(
(
(
(
(
(
(
(
P
P
P
P
P
P
-
-
-
-
-
-
-
391,423
12
12
6
27,505
5,032 )
306
92 )
354
5,600 )
368,932
422,934
365 )
37,028
(
(
P
P
-
-
-
-
-
-
-
-
(
(
(
(
1,598
81 ) (
81 ) (
24
1,655
1,614
17
-
P
P
-
-
-
393,021
69 )
69 )
6
27,529
5,032 )
306
92 )
354
5,600 )
370,587
424,548
365 )
37,045
5,153 )
393,021
1) (
P
P
300
461,457
1) (
1,598
P
-
-
-
47,373
10,764 )
144
947 )
294
1)
10,254 )
424,548
Total Equity
5,152 ) (
-
2,125
405
108
2) (
(
2) (
(
P
133
44
273
5,603 )
P
P
P
-
-
-
-
1,614
Non-controlling
Interests
P
133
44
273
5,602 ) (
391,423
459,332
105 )
47,265
10,762 ) (
144
947 )
294
1)
10,252 ) (
422,934
Total Attributable
to Shareholders
of the
Parent Bank
21
P
P
-
-
-
Other adjustment
Change in ownership interest in subsidiaries
BALANCE AT DECEMBER 31, 2020
-
-
15, 30
-
-
-
Disposals of equity securities classified as FVOCI
43,842
-
22, 28
22
22
-
P
-
28
-
-
Transfer from Surplus Free
Trust reserve
Reversal of appropriation of excess GLLP over ECL
Other reserves
-
P
28
43,814
P
-
26.3
22
Total comprehensive income (loss)
Transactions with owners
Issuance of shares during the year
Options transferred during the year
Options expensed during the year
Cash dividends
BALANCE AT JANUARY 1, 2020
BALANCE AT DECEMBER 31, 2021
43,855
-
P
-
-
-
Disposals of equity securities classified as FVOCI
-
-
22, 28
22
22
Transfer from Surplus Free
Trust reserve
Appropriation of excess GLLP over ECL
Other reserves
-
13
-
-
13
-
-
P
-
-
-
Total comprehensive income (loss)
26.3
43,842
P
22
BALANCE AT JANUARY 1, 2021
Transactions with owners
Issuance of shares during the year
Options transferred during the year
Options expensed during the year
Cash dividends
52,641
P
BALANCE AT DECEMBER 31, 2022
P
-
-
-
Disposals of equity securities classified as
fair value through other comprehensive income (FVOCI)
-
-
-
-
22, 28
22
22
8,786
8,773
5,150
5,150
5,150
5,150
6,180
1,030
1,030
5,150
Preferred Stock
Transfer from Surplus Free
Trust reserve
Appropriation of excess GLLP over ECL
Other reserves
26.3
13
P
-
-
43,855
Common Stock
Total comprehensive income (loss)
P
-
22
Notes
Transactions with owners
Issuance of shares during the year
Options transferred during the year
Options expensed during the year
Stock dividends
Cash dividends
BALANCE AT JANUARY 1, 2022
P
P
P
P
P
P
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
124,308
278
278
124,030
124,428
120
120
124,308
229,927
105,499
105,368
131
124,428
Additional
Paid-in Capital
P
P
P
P
( P
(
(
P
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(
1)
(
(
(
1) (
1)
P
P
P
P
P
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
17,085
564 )
P
P
P
P
P
P
-
-
-
(
214,207
11
11
1,109 )
564
223 )
827
40 )
28,606
5,600 )
5,600 )
191,735
249,407
P
( P
( P
P
( P
(
(
( P
322 ) (
1,557 )
263 )
1,250 )
44 )
42,681
5,602 )
5,602 )
214,207
178,300
17
2,694 )
251 )
2,311 )
132 )
56,993
125,423 )
115,171 )
10,252 )
249,407
Surplus Free
-
-
-
-
-
-
-
-
-
-
-
-
-
-
( P
2,459
148
3,139
( P
828 ) ( P
348 ) ( P
22 )
2,785 ) (
2,459
12,228 ) ( P
7)
11,873 ) (
348 ) ( P
Net Unrealized
Fair Value
Gains (Losses) on
FVOCI
Parent Bank
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,012 )
732
10,744 )
15,675 )
5,663 )
10,012 )
16,902 )
1,227 )
15,675 )
Accumulated
Actuarial
Losses
P
P
P
P
P
P
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
952
952
1,007
55
952
1,007
1,007
Revaluation
Increment
( P
(
( P
P
( P
( P
(
P
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Accumulated
Translation
Adjustment
See Notes to Financial Statements.
(
223 (
827 )
40 (
262
54 )
316
17,387
18,959
1,557
263
1,250
44
317
65
252
17,085
21,001
2,694
251
2,311
132
652 ) (
941 )
289
18,959
Surplus Reserves
P
S e e N ot e s t o F i n a n c i a l S t a t e m e n t s .
Treasury
shares at cost
( Am ou n ts i n M i lli on s of P h i li p p i n e P e s os )
BDO UNIBANK, INC. AND SUBSIDIARIES
STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020
BDO UNIBANK, INC. AND SUBSIDIARIES
FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020
(Amounts in Millions of Philippine Pesos)
Statements of Changes in Equity
(
( P
( P
(
14 ) ( P
8) (
6) ( P
36
50
14 ) ( P
25 ) ( P
61 )
36
-
-
-
-
-
-
-
-
-
-
-
-
-
(
(
(
(
(
(
5,923 )
967
4,610 )
2,280 )
3,358 )
(
(
(
22 ) (
2,587
5,923 )
1)
10 )
3,367
3,358 )
Accumulated Share in
Other Comprehensive
Income (Loss) of
Subsidiaries and
Associates
P
P
P
P
P
P
-
-
-
-
-
-
-
392,054
11
11
6
27,859
5,032 )
306
54 )
316
5,600 )
369,210
423,461
366 )
36,925
5,152 )
133
65
252
5,602 )
392,054
459,899
47,199
10,761 )
144
941 )
289
1)
10,252 )
423,461
Total Equity
22
BDO UNIBANK, INC. AND SUBSIDIARIES
18
18
22
13
22
19
NET INCREASE IN CASH AND CASH EQUIVALENTS ( C a rri e d F orw a rd )
Net Cash From (Used in) Financing Activities
Net Cash Used in Investing Activities
CASH FLOWS FROM FINANCING ACTIVITIES
Payments of bills payable
Proceeds from bills payable
Dividends paid
Payments of lease liabilities
Proceeds from issuance of common stock
Redemption of subordinated notes payable
(
10
10
10
10
10
12
12
(
10
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
12, 14, 15
15
9, 10, 11, 14, 15, 16, 21
24
23
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of securities at FVOCI
Proceeds from disposals of securities at FVOCI
Acquisitions of investment securities at amortized cost
Maturities and disposals of investment securities at amortized cost
Acquisitions of premises, furniture, fixtures and equipment
Proceeds from disposals of premises, furniture, fixtures and equipment
Net Cash From Operating Activities
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax
Adjustments for:
Interest income
Interest received
IMPAI Interest expense
Interest paid
Impairment losses
Foreign exchange loss (gain) unrealized
Depreciation and amortization
Share in net profit of subsidiaries and associates
Fair value losses (gains)
Gain from the disposal of investment securities at amortized cost
Gain from the disposal of securities at fair value through other
comprehensive income (FVOCI)
Operating profit before changes in operating resources and liabilities
Decrease (increase) in financial assets at fair value through profit or loss
Increase in loans and other receivables
Increase in investment properties
Decrease (increase) in other resources
Increase in deposit liabilities
Increase in insurance contract liabilities
Increase in other liabilities
Cash generated from operations
Cash paid for income tax
Notes
-
115,440
28,486 )
154,424 )
140,241
10,255 )
4,192 )
144
108,624 )
285,428 )
279,524
161,048 )
61,931
3,888 )
285
252,550
8)
84,686
2,708
233,423 )
3,864 )
19,653 )
398,047
8,655
29,034
266,190
13,640 )
169,071 )
166,954
19,839
16,862 )
16,366
15,457 )
9,920
849 )
679
18 )
73,193
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
P
P
-
16,531
20,754 )
139,905 )
127,859
5,603 )
3,238 )
133
90,901 )
476,166 )
490,264
169,502 )
68,198
3,853 )
158
128,186
278 )
75,576
10,287 )
145,077 )
4,291 )
13,928 )
210,839
12,604
15,963
141,399
13,213 )
144,879 )
147,093
13,533
13,039 )
17,063
7,614 )
9,198
814 )
293 )
156 )
55,762
BDO Unibank Group
2021
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
P
P
46,030
82,281
29,674
327,299 )
375,207
5,600 )
2,940 )
306
10,000 )
68,975 )
197,175 )
158,479
116,777 )
89,456
3,089 )
131
121,582
644 )
81,535
9,976 )
59,366 )
194 )
16,213 )
126,307
9,867
5,479
137,439
15,857 )
157,031 )
153,049
23,331
24,211 )
30,240
5,705
9,190
470 )
68 )
3,586 )
2020
See Notes to Financial Statements.
P
P
2022
STATEMENTS OF CASH FLOWS
BDO UNIBANK, INC. AND SUBSIDIARIES
FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020
FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020
( Am ou n ts i n M i l l i on s of P h i l i p p i n e P e s os )
(Amounts in Millions of Philippine Pesos)
Statements of Cash Flows
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
P
P
-
-
70,326
208,456
30,030 )
125,969 )
110,080
10,253 )
4,032 )
144
100,558 )
258,499 )
259,560
155,379 )
56,431
2,839 )
168
339,044
22,838
350,286
11,242 )
13 )
73,034
1,431 )
203,542 )
2,599 )
74,599
387,387
158,632 )
156,703
18,728
15,992 )
15,588
13,859 )
8,715
8,710 )
198
18 )
2022
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
P
P
-
-
15,292
21,829 )
74,022 )
60,762
5,602 )
3,100 )
133
91,069 )
446,867 )
459,718
161,191 )
60,520
3,314 )
65
128,190
13,629
140,330
12,140 )
191 )
68,814
39
135,533 )
658 )
9,535 )
203,574
136,772 )
140,391
12,906
13,050 )
16,829
6,714 )
8,035
6,350 )
221 )
108 )
54,059
Parent Bank
2021
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
P
P
-
44,888
78,224
43,025
120,527 )
181,674
5,600 )
2,828 )
306
10,000 )
59,765 )
162,827 )
129,731
111,208 )
87,087
2,570 )
22
94,964
9,201
109,836
14,872 )
178 )
75,318
1,222 )
70,019 )
392 )
14,039 )
110,989
149,697 )
146,917
22,400
23,677 )
29,596
4,492
7,935
3,839 )
67
3,586 )
2020
23
8
8
9
10
11
11
15
CASH AND CASH EQUIVALENTS AT END OF YEAR
Cash and other cash items
Due from BSP
Due from other banks
Investment securities at amortized cost
Reverse repurchase agreements
Interbank loans receivables
FCNC
P
P
-
-
663,318
26,305
98,942
10,582
82,944
385,779
58,766
-
547,878
17,095
81,083
5,597
69,105
304,906
70,092
531,347
547,878
16,531
17,095
81,083
5,597
P
P
BDO Unibank Group
2021
74,851
308,636
65,289
164
16,729
57,100
8,578
69,105
304,906
70,092
115,440
2022
-2-
P
P
-
82,281
531,347
74,851
308,636
65,289
164
16,729
57,100
8,578
449,066
31,277
5,345
64,140
309,040
38,956
308
2020
P
P
-
-
744,385
26,091
102,293
102,070
80,666
382,210
51,055
535,929
15,800
81,083
5,597
66,440
302,660
64,349
208,456
2022
P
P
-
535,929
15,800
81,083
5,597
66,440
302,660
64,349
520,637
72,301
305,079
63,281
164
14,135
57,100
8,577
15,292
Parent Bank
2021
P
P
-
78,224
520,637
72,301
305,079
63,281
164
14,135
57,100
8,577
442,413
31,277
5,344
62,726
306,938
35,820
308
2020
0
See Notes to Financial Statements.
0
S e e N ot e s t o F i n a n c i a l S t a t e m e n t s .
0
0
0
Other Information
Certain investment securities at amortized cost, SPURRA, interbank loans receivables, and FCNC are included as part of cash and cash equivalents for cash flow purposes but are presented as part of Trading and Investment Securities, Loans and Other Receivables, and
Other Resources, respectively, in the statements of financial position (see Note 2.6).
b. The BDO Unibank Group and the Parent Bank recognized additional right-of-use assets amounting to P4,683 and P4,414, respectively, in 2022, P3,216 and P2,951, respectively, in 2021, and P1,775 and P1,628, respectively, in 2020 which are presented as part of
Premises, Furnitures, Fixtures and Equipment (see Notes 12 and 13).
a. The BDO Unibank Group and the Parent Bank foreclosed real and other properties totalling to P16,875 and P16,729, respectively, in 2022, P13,523 and P13,479, respectively, in 2021, and P13,757 and P13,743, respectively, in 2020 in settlement of certain loan
accounts (see Note 14).
The following are the significant noncash transactions:
Supplemental Information on Noncash Financing and Investing Activities
8
8
9
10
11
11
15
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
Cash and other cash items
Due from Bangko Sentral ng Pilipinas (BSP)
Due from other banks
Investment securities at amortized cost
Reverse repurchase agreements
Interbank loans receivables
Foreign currency notes and coins (FCNC)
NET INCREASE IN CASH AND CASH EQUIVALENTS ( B rou g h t F orw a rd )
Notes
BDO UNIBANK, INC. AND SUBSIDIARIES
FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020
(Amounts in Millions of Philippine Pesos)
Statements of Cash Flows
0
Notes to Financial Statements
BDO UNIBANK, INC. AND SUBSIDIARIES
DECEMBER 31, 2022, 2021 AND 2020
(Amounts in Millions of Philippine Pesos, Except Per Share Data or As Indicated)
24
25
26
27
28
29
ˍ
ˍ
ˍ
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
GG
104
GG
105
GG
106
GG
107
GG
108
GG
109
GG
110
GG
111
GG
112
GG
113
GG
114
GG
115
GG
116
GG
117
GG
118
GG
119
GG
120
GG
121
GG
122
GG
123
GG
124
GG
125
GG
126
GG
127
128
129
130
131
132
133
134
135
136
–
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
on the
previous page
187
188
189
190
191
192
193
194
195
196
-
-
-
197
198
-
-
-
-
-
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
27,501
:
:
Tier 1 Capital Ratio
CET1 Capital Ratio
394,919
2,954,935
Risk-Weighted Assets
2,954,935
401,099
2,954,935
CET1 Capital (net of Regulatory Deductions)
Risk-Weighted Assets
Tier 1 Capital (net of Regulatory Deductions)
Risk-Weighted Assets
Total Qualifying Capital
397,368
2,846,030
364,648
2,846,030
370,828
2,846,030
2,714,820
368,291
2,714,820
373,441
2,714,820
398,650
7.6%
13.6%
13.8%
14.7%
2,714,820
286,120
10,801
2,417,899
398,650
35,097
433,747
25,209
408,538
5,150
403,388
2,617,747
342,365
2,617,747
347,515
2,617,747
371,780
7.1%
13.1%
13.3%
14.2%
2,617,747
270,369
8,441
2,338,937
371,780
61,769
433,549
24,265
409,284
5,150
404,134
The regulatory qualifying capital is composed of Tier 1 and Tier 2 capital. Tier 1 capital is comprised of paid-up common and preferred stock, surplus including current year profit, surplus reserves (excluding
appropriated surplus free for deficiency in BSP-required 1% general provision), other comprehensive income {net unrealized gains or losses on AFS securities; cumulative foreign currency translation and actuarial
gain/(loss)}, and minority interest (for consolidated basis only) less regulatory deductions such as unsecured credit accommodations to directors, officers, stockholders and their related interests (DOSRI),
unsecured loans, other credit accommodations and guarantees granted to subsidiaries, deferred tax assets, goodwill, other intangible assets, and defined benefit pension fund assets. The other component of
regulatory capital is Tier 2 capital, which includes appraisal increment reserve and general loan loss provision (including appropriated surplus free for deficiency in BSP-required 1% general provision).
:
Total Capital Ratio
Capital ratios involving components of regulatory capital are calculated as follows:
428,600
6.8%
7.4%
Capital conservation buffer
12.8%
13.4%
CET1 Capital Ratio
13.0%
13.6%
14.0%
14.5%
2,846,030
Tier 1 Capital Ratio
2,954,935
267,602
11,811
2,566,617
397,368
72,666
470,034
26,540
443,494
6,180
Total Capital Ratio
Risk Weighted Assets (RWA)
279,033
12,845
Operational risk-weighted assets
2,663,057
Market risk-weighted assets
428,600
42,219
Credit risk-weighted assets
Total Qualifying Capital
Less: Regulatory adjustments/deductions
470,819
Tier 2 Capital
Gross Qualifying Capital
443,318
6,180
437,314
(in Millions)
437,138
Tier 1 Capital
Additional Tier 1 (AT1) Capital
Common Equity Tier 1 (CET1) Capital
Parent Bank
December 31, 2021
BDO Unibank
Group
(in Millions)
Parent Bank
December 31, 2022
BDO Unibank
Group
The capital-to-risk assets ratio of BDO Unibank Group as presented in the Capital Adequacy Ratio (Basel III ) reports as of December 31, 2022 and 2021 are shown in the table below.
Supplementary Management Discussion
235
56,900
(17,966)
Undivided profits
Net unrealized gains or losses on AFS securities
25,694
26,540
27,501
846
26,655
Below is the full reconciliation of all regulatory capital elements back to the balance sheet in the audited financial statements for 2022 AND 2021:
and any amount in excess thereof shall be deducted from the credit risk-weighted assets in
computing the denominator of the risk-based capital ratio
General loan loss provision, limited to a maximum of 1% of credit risk-weighted assets (CRWA),
846
Appraisal increment reserve-bank premises, as authorized by the Monetary Board
-
Parent Bank
December 31, 2022
(in Millions)
BDO Unibank
Group
370,828
6,180
6,180
401,099
-
6,180
364,648
72,666
5,503
18,132
32,472
-
6,180
394,919
42,219
5,966
18,590
Instruments issued by the bank that are eligible as Tier 2 capital
Tier 2 Capital
The components of Tier 2 capital follow:
Total Tier 1 Capital
Additional paid-in capital
Perpetual preferred shares
Additional Tier 1 Capital
Total Common Equity Tier 1 Capital
Sub-total
Other equity investments in non-financial allied undertakings and non-allied undertakings
after deducting related goodwill, if any (for both solo and consolidated bases and as applicable)
Investments in equity of unconsolidated subsidiary securities dealers/brokers and insurance companies
undertakings (excluding subsidiary securities dealers/brokers and insurance companies),
after deducting related goodwill, if any (for solo basis only and as applicable)
-
-
-
131
Investments in equity of unconsolidated subsidiary banks and quasi-banks, and other financial allied
Defined benefit pension fund assets (liabilities)
7,178
6,782
7,039
43,855
-
25,209
24,200
1,009
347,515
24,265
23,414
851
-
Parent Bank
December 31, 2021
(in Millions)
BDO Unibank
Group
373,441
5,150
5,150
5,150
342,365
61,769
5,197
10,955
27,534
-
7,057
-
6,262
2,848
1,916
-
404,134
(2,426)
(17,167)
50
195
42,681
212,518
124,428
-
5,150
368,291
35,097
5,197
11,022
-
3,021
Other intangible assets
-
3,011
6,715
48
1,916
-
79
403,388
(2,909)
(16,628)
44
(79)
42,728
211,851
Goodwill
5,080
2,577
43,855
124,447
5,360
2
2,119
1
1
2,119
437,314
5,936
(17,588)
34
(17,965)
56,972
125,594
115
437,138
5,936
(17,588)
52,641
231,690
Deferred tax assets
subsidiaries
Total outstanding unsecured loans, other credit accommodations and guarantees granted to
stockholders and their related interests (DOSRI)
Total outstanding unsecured credit accommodations, both direct and indirect, to directors, officers,
Minority interest in subsidiary banks which are less than wholly-owned
Sub-total
Less: Regulatory adjustments/deductions
Common stock treasury shares
Others
Remeasurements of Net Defined Benefit Liability/(Asset)
38
125,372
Retained earnings
Cumulative foreign currency translation
52,641
231,690
(in Millions)
(in Millions)
Additional paid-in capital
BDO Unibank
Parent Bank
Group
December 31, 2021
BDO Unibank
Parent Bank
Group
December 31, 2022
Paid-up common stock
Common Equity Tier 1 (CET1) Capital
The components of Tier 1 capital and deductions follow:
236
25,694
26,540
27,501
2,721
154
(1,532)
125,372
56,900
(29,580)
Retained earnings
Undivided profits
Other comprehensive income
-
(2)
(5,360)
164
933
846
26,655
Appraisal increment reserve-bank premises, as authorized by the MB
General loan loss provision, limited to a maximum of 1% of CRWA, and any amount in excess thereof
shalldeducted
be
from the CRWA in computing the denominator of the risk-based capital ratio
*Per summary of adjustments as of December 31, 2022 as submitted to the Bangko Sentral ng Pilipinas
Regulatory
Capital
Adjustments
BDO Unibank Group
19,641
-
-
Deposit for subscription of Tier 2 capital
428,600
-
TOTAL QUALIFYING CAPITAL
1,097
-
Tier 2 Capital
18,544
27,501
401,099
TOTAL TIER 1 CAPITAL
-
18,544
Instruments issued by the bank that are eligible as Tier 2 capital
6,180
394,919
18,590
465
(18,590)
(5,966)
Additional tier 1 capital
Total Common Equity Tier 1 Capital
Other equity investments in non-financial allied undertakings and non-allied undertakings
undertakings (excluding subsidiary securities dealers/brokers and insurance companies), after
deducting
related goodwill, if any (for solo basis only and as applicable)
Investments in equity of unconsolidated subsidiary securities dealers/brokers and insurance companies
afterdeducting related goodwill, if any (for both solo and consolidated bases and as applicable)
-
(84)
(131)
-
(22)
(7,039)
Defined benefit pension fund assets (liabilities)
Investment in equity of unconsolidated subsidiary banks and quasi-banks, and other financial allied
(10)
(3,011)
Other intangible assets
5
18,944
-
115
(1)
(2,119)
430
5,936
(42,219)
22
-
(17,588)
38
Goodwill
Deferred tax assets
Total outstanding unsecured credit accommodations both direct and indirect, to DOSRI
Total outstanding unsecured loans, other credit accommodations and guarantees granted to subsidiaries
A.2 Regulatory adjustments to CET1 capital
Common stock treasury shares
Minority interest in subsidiary banks which are less than wholly-owned
Others
Remeasurements of Net Defined Benefit Liability/(Asset)
Cumulative foreign currency translation
(1,984)
(1,743)
231,690
Additional paid-in capital
(17,966)
-
Net unrealized gains or losses on AFS securities
(400)
52,641
(in Millions)
Adjustments
437,138
Regulatory
Capital
BDO Unibank Group
Paid-up common stock
A.1 Common Equity Tier 1 (CET1) Capital
Qualifying Capital
846
26,655
846
Below is the full reconciliation of all regulatory capital elements back to the balance sheet in the audited financial statements for 2022 AND 2021:
and any amount in excess thereof shall be deducted from the credit risk-weighted assets in
computing the denominator of the risk-based capital ratio
General loan loss provision, limited to a maximum of 1% of credit risk-weighted assets (CRWA),
Appraisal increment reserve-bank premises, as authorized by the Monetary Board
Per AFS
24,265
23,414
851
Regulatory Capital
397,368
25,694
846
-
-
26,540
370,828
6,180
364,648
(18,132)
(5,503)
(32,472)
-
(6,782)
-
(2,577)
(5,080)
(1)
(2,119)
(72,666)
-
5,936
(17,588)
34
(17,965)
(29,583)
56,972
125,594
231,690
52,641
437,314
Regulatory Capital
December 31, 2021
448,241
27,588
1,010
-
-
28,598
419,643
6,180
413,463
(5,501)
-
(215)
(7,061)
(3,021)
(2)
(5,355)
(1)
(2,119)
(23,275)
115
6,366
(17,566)
38
(19,950)
(31,112)
57,054
128,093
229,947
52,641
436,738
Per AFS
December 31, 2022
25,209
24,200
1,009
(79)
-
Adjustments*
Parent Bank
(8)
209
84
160
-
-
244
(35)
-
(35)
-
-
-
52
44
-
-
-
-
-
(5,937)
686
(58)
5,738
429
21
1,234
(1,763)
(in Millions)
Adjustments*
Parent Bank
(1)
Per AFS
397,577
25,778
1,006
-
-
26,784
370,793
6,180
364,613
(18,140)
(5,503)
(32,472)
-
(6,782)
-
(2,577)
(5,028)
(1)
(2,119)
(72,622)
-
(16,902)
(24)
(12,227)
(29,154)
56,993
126,828
229,927
52,641
437,235
Per AFS
237
42,659
(20,043)
Undivided profits
Other comprehensive income
-
(7,178)
-
Other intangible assets
857
24,202
Appraisal increment reserve-bank premises, as authorized by the MB
General loan loss provision, limited to a maximum of 1% of CRWA, and any amount in excess thereof
shalldeducted
be
from the CRWA in computing the denominator of the risk-based capital ratio
Comparative risk-weighted assets by type of exposure as of December 31, 2022 and 2021 consist of the following:
*Per summary of adjustments as of December 31, 2021 as submitted to the Bangko Sentral ng Pilipinas
Credit Risk *
1,304
-
Deposit for subscription of Tier 2 capital
397,346
152
(2)
-
-
TOTAL QUALIFYING CAPITAL
150
25,059
1,154
-
1,154
261
413
-
46
Instruments issued by the bank that are eligible as Tier 2 capital
372,287
TOTAL TIER 1 CAPITAL
Tier 2 Capital
5,150
367,137
(11,283)
(5,610)
Additional tier 1 capital
Total Common Equity Tier 1 Capital
Other equity investments in non-financial allied undertakings and non-allied undertakings
Investments in equity of unconsolidated subsidiary securities dealers/brokers and insurance companies
afterdeducting related goodwill, if any (for both solo and consolidated bases and as applicable)
undertakings (excluding subsidiary securities dealers/brokers and insurance companies), after
deducting
related goodwill, if any (for solo basis only and as applicable)
Defined benefit pension fund assets (liabilities)
Investment in equity of unconsolidated subsidiary banks and quasi-banks, and other financial allied
-
-
(3,021)
Goodwill
-
(48)
(6,761)
Deferred tax assets
Total outstanding unsecured loans, other credit accommodations and guarantees granted to subsidiaries
-
-
(1,916)
720
(35,817)
-
614
(3,523)
79
(237)
(16,391)
44
Total outstanding unsecured credit accommodations both direct and indirect, to DOSRI
A.2 Regulatory adjustments to CET1 capital
Common stock treasury shares
Minority interest in subsidiary banks which are less than wholly-owned
Others
Remeasurements of Net Defined Benefit Liability/(Asset)
Cumulative foreign currency translation
94
471
209,647
Retained earnings
-
2,204
126,757
Additional paid-in capital
(173)
(2,310)
69
-
Net unrealized gains or losses on AFS securities
434
43,855
(in Millions)
Adjustments
402,954
Regulatory
Capital
BDO Unibank Group
19,641
Paid-up common stock
A.1 Common Equity Tier 1 (CET1) Capital
Qualifying Capital
*Per summary of adjustments as of December 31, 2022 as submitted to the Bangko Sentral ng Pilipinas
428,600
933
26,655
Appraisal increment reserve-bank premises, as authorized by the MB
General loan loss provision, limited to a maximum of 1% of CRWA, and any amount in excess thereof
shalldeducted
be
from the CRWA in computing the denominator of the risk-based capital ratio
TOTAL QUALIFYING CAPITAL
164
846
Deposit for subscription of Tier 2 capital
-
-
397,368
25,694
846
371,729
23,428
857
-
-
24,285
347,444
5,150
342,294
(11,045)
(5,197)
(27,540)
-
(7,057)
-
(2,848)
(6,323)
(1,916)
-
(61,926)
-
(3,523)
(16,361)
42
157
(19,685)
42,572
210,721
126,757
43,855
404,220
Regulatory Capital
Market Risk **
398,650
24,200
1,009
-
-
25,209
373,441
5,150
368,291
(11,022)
(5,197)
-
-
(7,178)
(3,021)
(48)
(6,715)
(1,916)
-
(35,097)
79
(2,909)
(16,628)
44
(79)
(19,572)
42,728
211,851
124,447
43,855
403,388
Per AFS
December 31, 2021
448,241
27,588
1,010
-
(86)
209
84
71
71
90
6
61
(6)
1,006
371,780
23,414
851
-
-
24,265
347,515
5,150
342,365
(10,955)
(5,197)
(27,534)
-
(7,057)
-
(2,848)
(6,262)
(1,916)
-
(61,769)
-
(2,426)
(17,167)
50
195
(19,348)
42,681
212,518
124,428
43,855
404,134
Per AFS
397,577
25,778
Operational Risk ****
51
(14)
-
-
(20)
-
-
-
-
-
-
-
-
157
-
1,097
(806)
8
38
337
109
1,797
(2,329)
(in Millions)
Adjustments*
Parent Bank
160
238
2,518,561
45,418
5,414
(2,776)
2,566,617
256,662
2,663,057
266,306
Parent
2,610,419
45,418
9,677
(2,457)
Group
Credit Risk *
1,304
(2)
24,202
397,346
152
857
Type of Exposures
Type of Exposures
Direct credit substitutes
Transaction-related contingencies
Trade-related contingencies arising from movement of goods and commitments
with an original maturity of up to one (1) year
Off-Balance Sheet Assets
Cash on Hand
Checks and Other Cash Items
Due from Bangko Sentral ng Pilipinas
Due from Other Banks
Financial Assets Designated at Fair Value through Profit or Loss
Available for Sale Securities
Held-to-Maturity (HTM) Securities
Unquoted Debt Securities Classified as Loans
Loans and Receivables
Loans and Receivables Arising from Repurchase Agreements
Sales Contract Receivable
Real and Other Properties Acquired
Other Assets
Total Exposures
Total Risk-weighted On-Balance Sheet Assets Not Covered by CRM
Total Risk-weighted On-Balance Sheet Assets Covered by CRM
Total Risk-weighted On-Balance Sheet Assets
On-Balance Sheet Assets
13,664
46,592
37
32,891
(in millions)
Credit Equivalent
93,497
12
385,779
58,668
1,263
119,042
509,438
2,671,462
26,305
1,295
14,714
82,389
3,963,864
(in millions)
Principal Amount
0%
-
-
93,497
12
385,779
58,668
1,263
119,042
498,638
2,575,697
26,305
1,295
14,714
82,389
3,857,299
Exposures After
CRM (in millions)
20%
293
293
93,497
385,779
42,801
312,182
26,305
860,564
-
0%
****The Monetary Board (MB), in its Resolution No. 941 dated 29 June 2022, approved the request of BDO Unibank, Inc. (BDO), for full implementation of the new SA
for operational risk capital measurement under Basel III, for prudential reporting purposes effective 30 June 2022.
***General loan loss provision (in excess of the amount permitted to be included in Tier 2).
* Standardized credit risk weights were used in the credit assessment of asset exposures. Third party credit assessments were based on ratings by Standard and
Poor's, Moody's, Fitch and PhilRatings on exposures to Sovereigns, MDBs, LGUs, Government Corporations, and Corporates.
** Excludes interest rate risks in the banking book (IRRBB). For IRRBB, please refer to 2022 NFS Section 4.2.2. As a matter of policy, frequency of measurement
for IRRBB is monthly.
On-Balance Sheet
Off-Balance Sheet
Counterparty (Banking/Trading Book)
Credit-Linked Notes in the Banking Book
Securitization Exposures
Deductions ***
Interest Rate Exposures
Equity Exposures
Foreign Exchange Exposures
Options
New Standardized Approach (NSA)
Total
Capital Requirements
Comparative risk-weighted assets by type of exposure as of December 31, 2022 and 2021 consist of the following:
*Per summary of adjustments as of December 31, 2021 as submitted to the Bangko Sentral ng Pilipinas
TOTAL QUALIFYING CAPITAL
Appraisal increment reserve-bank premises, as authorized by the MB
General loan loss provision, limited to a maximum of 1% of CRWA, and any amount in excess thereof
shalldeducted
be
from the CRWA in computing the denominator of the risk-based capital ratio
11,811
1,181
3,169
8,642
-
371,729
-
50%
-
-
Risk Weights
12
7,991
1,783
6,452
251,908
268,146
53,629
7
53,636
20%
75%
-
-
51
(14)
(6)
-
13,664
45,125
37
31,424
100%
75%
279,033
279,033
27,903
23,414
851
371,780
150%
-
-
123
1,005
36,810
60,895
2,133,363
926
82,389
2,315,511
2,315,511
3,029
2,318,540
100%
267,602
267,602
26,760
Parent
Operational Risk ****
Group
Risk Weights
50,554
258
37,595
119,083
173,884
381,374
190,687
190,687
50%
BDO Unibank Group
12,845
1,285
5,289
1
7,555
-
857
23,428
Market Risk **
December 31, 2022
Group
Parent
(in Millions)
398,650
24,200
1,009
13,664
45,418
37
31,717
Total
53
26
16,542
369
14,714
31,704
47,556
47,556
150%
-
Total
93,497
12
385,779
58,668
1,263
119,042
498,638
2,575,697
26,305
1,295
14,714
82,389
3,857,299
2,607,383
3,036
2,610,419
239
Type of Exposures
Type of Exposures
13,664
46,592
37
32,891
(in millions)
Credit Equivalent
91,226
12
382,210
51,055
109,625
491,377
2,599,908
26,091
1,198
14,584
83,459
3,850,745
(in millions)
Principal Amount
0%
-
-
91,226
12
382,210
51,055
109,625
480,577
2,504,365
26,091
1,198
14,584
83,459
3,744,402
Exposures After
CRM (in millions)
20%
293
293
91,226
382,210
36,253
299,915
26,091
14,937
850,632
-
0%
12
50%
-
-
Risk Weights
1,214
1,684
5,511
251,908
260,329
52,066
7
52,073
20%
Parent Bank
75%
-
-
-
13,664
45,125
37
31,424
100%
75%
Risk Weights
49,660
36,162
116,103
168,054
369,979
184,990
184,990
50%
150%
-
-
181
35,473
59,021
2,069,360
891
68,522
2,233,448
2,233,448
3,029
2,236,477
100%
53
27
13,664
45,418
37
31,717
Total
15,043
307
14,584
30,014
45,021
45,021
150%
-
2,295,492
42,537
3,334
(2,426)
2,338,937
233,894
2,417,899
241,790
Parent
2,369,991
42,537
7,444
(2,073)
Credit Risk *
* Standardized credit risk weights were used in the credit assessment of asset exposures. Third party credit assessments were based on ratings by Standard and
Poor's, Moody's, Fitch and PhilRatings on exposures to Sovereigns, MDBs, LGUs, Government Corporations, and Corporates.
** Excludes interest rate risks in the banking book (IRRBB). For IRRBB, please refer to NFS Section 4.2.2. As a matter of policy, frequency of measurement
for IRRBB is monthly.
***General loan loss provision (in excess of the amount permitted to be included in Tier 2).
On-Balance Sheet
Off-Balance Sheet
Counterparty (Banking/Trading Book)
Credit-Linked Notes in the Banking Book
Securitization Exposures
Deductions ***
Interest Rate Exposures
Equity Exposures
Foreign Exchange Exposures
Options
Basic Indicator Approach (BIA)
Total
Capital Requirements
Group
10,801
1,080
5,417
6
5,378
-
Market Risk **
December 31, 2021
Group
Parent
(in Millions)
8,441
844
2,128
6,313
-
270,369
270,369
27,037
Parent
Operational Risk
286,120
286,120
28,612
Group
Risk-weighted on balance sheet assets covered by credit risk mitigants are mostly exposures covered by deposits or guarantees by the Philippine National Government. There are no securitization exposures, no exposures covered by credit derivatives, no outstanding credit protection provided by
the Bank through credit derivatives, and no outstanding investments in Structured Products. Moreover, the Bank has no outstanding accounting hedges. In case there are accounting hedges, the Bank performs both prospective and retrospective hedge effectiveness tests to monitor the continuing
effectiveness of accounting hedges as a matter of policy.
Direct credit substitutes
Transaction-related contingencies
Trade-related contingencies arising from movement of goods and commitments
with an original maturity of up to one (1) year
Off-Balance Sheet Assets
Cash on Hand
Checks and Other Cash Items
Due from Bangko Sentral ng Pilipinas
Due from Other Banks
Financial Assets Designated at Fair Value through Profit or Loss
Available for Sale Securities
Held-to-Maturity (HTM) Securities
Unquoted Debt Securities Classified as Loans
Loans and Receivables
Loans and Receivables Arising from Repurchase Agreements
Sales Contract Receivable
Real and Other Properties Acquired
Other Assets
Total Exposures
Total Risk-weighted On-Balance Sheet Assets Not Covered by CRM
Total Risk-weighted On-Balance Sheet Assets Covered by CRM
Total Risk-weighted On-Balance Sheet Assets
On-Balance Sheet Assets
Total
91,226
12
382,210
51,055
109,625
480,577
2,504,365
26,091
1,198
14,584
83,459
3,744,402
2,515,525
3,036
2,518,561
240
Type of Exposures
Type of Exposures
Type of Exposures
Type of Exposures
9,633
43,912
37
34,242
(in millions)
Credit Equivalent
72,020
17
302,660
64,349
115,965
377,382
2,392,360
15,800
1,116
11,309
59,316
3,412,294
(in millions)
Principal Amount
9,633
43,912
37
34,242
(in millions)
Credit Equivalent
74,684
17
304,906
69,891
8,721
130,465
393,887
2,437,644
17,095
1,171
11,346
72,051
3,521,878
(in millions)
Principal Amount
-
-
0%
-
-
72,020
17
302,660
64,349
115,965
367,502
2,300,469
15,800
1,116
11,309
59,316
3,310,523
Exposures After
CRM (in millions)
0%
74,684
17
304,906
69,891
8,721
130,465
384,008
2,345,535
17,095
1,171
11,346
72,051
3,419,890
Exposures After
CRM (in millions)
344
344
20%
344
344
72,020
302,660
38,256
214,072
15,800
642,808
-
0%
20%
74,684
304,906
46,707
224,436
17,095
667,828
-
0%
17
17
Parent Bank
-
-
Risk Weights
50%
-
-
Risk Weights
1,313
1,553
6,339
249,421
258,643
51,729
4
51,733
20%
50%
4,144
1,659
7,836
249,421
263,077
52,615
4
52,619
20%
75%
50%
75%
50%
BDO Unibank Group
-
-
-
-
9,633
42,193
37
32,523
100%
75%
9,633
42,193
37
32,523
100%
75%
Risk Weights
62,976
38,939
108,545
152,928
363,388
181,694
181,694
-
-
65,559
259
41,767
111,691
158,305
377,581
188,791
188,791
Risk Weights
-
-
-
150%
-
-
60
37,217
38,546
1,883,458
898
59,316
2,019,495
2,019,495
3,286
2,022,781
100%
150%
188
8,462
40,332
40,045
1,921,612
932
72,051
2,083,622
2,083,622
3,286
2,086,908
100%
9,633
42,537
37
32,867
Total
150%
14,662
218
11,309
26,189
39,284
39,284
9,633
42,537
37
32,867
Total
150%
16,197
239
11,346
27,782
41,673
41,673
Risk-weighted on balance sheet assets covered by credit risk mitigants are mostly exposures covered by deposits or guarantees by the Philippine National Government. There are no securitization exposures, no exposures covered by credit derivatives, no outstanding credit protection provided by
the Bank through credit derivatives, and no outstanding investments in Structured Products. Moreover, the Bank has no outstanding accounting hedges. In case there are accounting hedges, the Bank performs both prospective and retrospective hedge effectiveness tests to monitor the continuing
effectiveness of accounting hedges as a matter of policy.
Direct credit substitutes
Transaction-related contingencies
Trade-related contingencies arising from movement of goods and commitments
with an original maturity of up to one (1) year
Off-Balance Sheet Assets
Cash on Hand
Checks and Other Cash Items
Due from Bangko Sentral ng Pilipinas
Due from Other Banks
Financial Assets Designated at Fair Value through Profit or Loss
Available for Sale Securities
Held-to-Maturity (HTM) Securities
Unquoted Debt Securities Classified as Loans
Loans and Receivables
Loans and Receivables Arising from Repurchase Agreements
Sales Contract Receivable
Real and Other Properties Acquired
Other Assets
Total Exposures
Total Risk-weighted On-Balance Sheet Assets Not Covered by CRM
Total Risk-weighted On-Balance Sheet Assets Covered by CRM
Total Risk-weighted On-Balance Sheet Assets
On-Balance Sheet Assets
Direct credit substitutes
Transaction-related contingencies
Trade-related contingencies arising from movement of goods and commitments
with an original maturity of up to one (1) year
Off-Balance Sheet Assets
Cash on Hand
Checks and Other Cash Items
Due from Bangko Sentral ng Pilipinas
Due from Other Banks
Financial Assets Designated at Fair Value through Profit or Loss
Available for Sale Securities
Held-to-Maturity (HTM) Securities
Unquoted Debt Securities Classified as Loans
Loans and Receivables
Loans and Receivables Arising from Repurchase Agreements
Sales Contract Receivable
Real and Other Properties Acquired
Other Assets
Total Exposures
Total Risk-weighted On-Balance Sheet Assets Not Covered by CRM
Total Risk-weighted On-Balance Sheet Assets Covered by CRM
Total Risk-weighted On-Balance Sheet Assets
On-Balance Sheet Assets
Total
72,020
17
302,660
64,349
115,965
367,502
2,300,469
15,800
1,116
11,309
59,316
3,310,523
2,292,202
3,290
2,295,492
Total
74,684
17
304,906
69,891
8,721
130,465
384,008
2,345,535
17,095
1,171
11,346
72,051
3,419,890
2,366,701
3,290
2,369,991
241
Total on-balance sheet exposures (excluding derivatives and SFTs) (sum of lines 1 and 2)
Derivative exposures
Replacement Cost associated with all derivatives transactions
Add-on amounts for Potential Future Exposure associated with all derivative transactions
Gross-up for derivatives collateral provided where deducted from the balance sheet assets pursuant to
the operative accounting framework 2/
(Deductions of receivables assets for cash variation margin provided in derivatives transactions) 2/
3
4
5
6
2022
Capital and total exposures
3/
2/
1/
Gross of General Loan Loss Provision (GLLP) and excluding derivatives and SFTs
Not included under the framework
When a bank/non-bank acting as an agent in an SFT provides an indemnity or guarantee to a customer or
counterparty for any difference between the value of the security or cash the customer has lent and the
value of the collateral the borrower has provided
20 Tier 1 capital
21 Total exposures (sum of lines 3, 11, 16 and 19)
Leverage ratio
22 Basel III leverage ratio
19 Off-balance sheet items
17 Off-balance sheet exposure at gross notional amount
18 (Adjustments for conversion to credit equivalent amounts)
370,828.074
3,960,794.512
9.36%
401,098.808
4,083,412.001
9.82%
92,741.672
595,635.903
596,393.634
92,817.445
26,084.421
26,298.227
26,084.421
26,298.227
12 Gross SFT assets (with no recognition of netting)
13 (Netted amounts of cash payables and cash receivables of gross SFT assets) 2/
14 CCR exposures for SFT assets
15 Agent transaction exposures 3/
16 Total securities financing transaction exposures (sum of lines 12 to 15)
Other off-balance sheet exposures
6,600.715
13,155.415
0.000
3,336.262
3,264.453
7,732.152
5,423.263
0.000
3,908,033.885
-72,666.181
3,835,367.705
Parent Bank
3,993,360.035
-42,219.122
3,951,140.913
BDO Unibank Group
11 Total derivative exposures (sum of lines 4 to 10)
Securities financing transaction exposures
8 (Exempted CCP leg of client-cleared trade exposures) 2/
9 Adjusted effective notional amount of written credit derivatives
10 (Adjusted effective offsets and add-on deductions for written credit derivatives)
7
On-balance sheet items 1/
(Asset amounts deducted in determining Basel III Tier 1 Capital)
On-balance sheet exposures
Item
1
2
In Million Pesos; Ratios in Percent
Basel III Leverage Ratio Common Disclosure Template
Basel III Leverage Ratios of BDO Unibank Group and Parent Bank as of December 31, 2022 and 2021 as submitted to the Bangko Sentral ng Pilipinas (BSP).
2021
10.25%
372,288.422
3,630,458.886
87,642.786
553,995.279
17,095.425
17,095.425
11,109.411
0.000
5,502.337
5,607.073
3,550,428.322
-35,817.059
3,514,611.263
BDO Unibank Group
9.85%
347,442.612
3,526,540.977
87,638.905
553,956.467
15,800.317
15,800.317
5,990.705
0.000
2,360.431
3,630.274
3,479,037.517
-61,926.467
3,417,111.050
Parent Bank
242
3/
2/
1/
3/
2022
4,083,412.001
-28,625.883
5,423.263
0.000
92,817.445
BDO Unibank Group
4,013,797.175
Refers to total on-balance sheet assets per quarterly published balance sheet
Not included under the framework
Sum of Items 1 to 7. Should be consistent with item 21 of the Basel III Leverage Ratio Common Disclosure Template
Leverage ratio exposure
Total consolidated assets as per published financial statements 1/
Adjustment for investments in banking, financial, insurance or commercial entities that are consolidated
for accounting purposes but outside the scope of regulatory consolidation 2/
Adjustment for fiduciary assets recognized on the balance sheet pursuant to the operative accounting
framework but excluded from the leverage ratio exposure measure 2/
Adjustments for derivative financial instruments
Adjustments for securities financial transactions (i.e., repos and similar secured lending)
Adjustments for off-balance sheet items (i.e., conversion to credit equivalent amounts of off-balance
sheet exposures)
Other adjustments
Item
2021
3,960,794.512
-59,674.225
3,264.453
0.000
92,741.672
3,630,458.886
-22,752.055
5,607.073
0.000
87,642.786
Parent Bank
BDO Unibank Group
3,924,462.613
3,559,961.081
3,526,540.977
-49,253.394
3,630.274
0.000
87,638.905
Parent Bank
3,484,525.192
The Bank’s Leverage Ratio remains well above the regulatory minimum requirement of 5%. The leverage ratio has declined year-on-year (Y-o-Y) by about 49 basis points (bps) and 43bps on Solo and
Consolidated Basis, respectively. The dropped was mainly due to a Y-o-Y increase of about 12% in total exposures, despite an increase of 7% and 8% in Tier 1 Capital on Solo and Consolidated Basis,
respectively.
There is no significant difference between the banks’ total balance sheet assets in its financial statements and the on-balance sheet exposures in the Leverage Ratio Report.
8
7
4
5
6
3
1
2
In Million Pesos
Summary Comparison of Accounting Assets vs. Leverage Ratio Exposure
Basel III Liquidity Coverage Ratio (LCR) of BDO Unibank Group as of December 31, 2022 and December 31, 2021 per Bangko Sentral ng Pilipinas (BSP) required disclosure.
LIQUIDITY COVERAGE RATIO DISCLOSURE TEMPLATE - CONSOLIDATED
(In Single Currency, Absolute Amount)
BDO Unibank Group
2022
NATURE OF ITEM
TOTAL UNWEIGHTED
VALUE
(AVERAGE)
1
2021
TOTAL WEIGHTED
VALUE
(AVERAGE)
2
TOTAL UNWEIGHTED 1
VALUE
(AVERAGE)
TOTAL WEIGHTED 2
VALUE
(AVERAGE)
STOCK OF HIGH-QUALITY LIQUID ASSETS (HQLA)
842,682,194,526.94
1. TOTAL STOCK OF HQLA
750,664,348,544.69
EXPECTED CASH OUTFLOWS
2. Deposits, of which:
2,961,889,090,046.29
662,676,116,487.30
2,661,510,712,115.38
575,276,282,120.14
3. Retail funding
1,718,811,442,379.80
179,698,404,255.29
1,598,858,760,527.04
164,376,521,292.01
4. Wholesale Funding of which:
1,243,077,647,666.49
482,977,712,232.01
1,062,651,951,588.34
410,899,760,828.13
5. Operational deposits
884,586,218,033.48
265,375,865,410.04
768,455,929,195.02
230,536,778,758.51
6. Non-operational deposits (all counterparties)
358,491,429,633.01
217,601,846,821.97
294,196,022,393.32
180,362,982,069.62
18,366,108,107.74
18,053,192,832.21
12,142,018,406.18
11,959,208,742.38
7. Unsecured wholesale funding (all counterparties)
8. Secured Funding
0.00
125,405,128.38
9. Derivatives contracts, of which:
183,570,282,627.95
183,570,282,627.95
129,815,332,695.72
129,815,332,695.72
10. Outflows related to derivatives exposures (net)
183,570,282,627.95
183,570,282,627.95
129,815,332,695.72
129,815,332,695.72
11. Outflows related to collateral requirements
0.00
0.00
0.00
0.00
12. Structured financing instruments
0.00
0.00
0.00
0.00
23,403,000,000.00
2,340,300,000.00
34,069,447,442.98
3,376,619,526.70
23,333,397,051.71
13. Committed business facilities (all counterparties)
14. Other contractual obligations within a 30-day period
15. Other contingent funding obligations
26,084,632,852.41
26,084,632,852.41
23,333,397,051.71
2,928,275,407,017.22
87,848,262,210.52
2,736,034,876,404.68
16 TOTAL EXPECTED CASH OUTFLOWS
82,081,046,292.14
825,841,886,428.79
980,698,192,138.77
EXPECTED CASH INFLOWS
267,974,509.48
53,131,417.41
94,061,108.28
32,800,611.09
18. Fully performing exposures (all counterparties)
309,437,214,064.17
197,663,450,461.83
250,695,082,527.93
156,007,091,561.11
19. Other cash inflows
195,112,147,723.46
195,112,147,723.46
139,340,184,490.03
139,340,184,490.03
20. TOTAL EXPECTED CASH INFLOWS
504,817,336,297.11
392,828,729,602.70
390,129,328,126.24
295,380,076,662.23
17. Secured lending
Total Adjusted 3
Value
Total Adjusted 3
Value
21. TOTAL STOCK OF HQLA
842,682,194,526.94
750,664,348,544.69
22. TOTAL EXPECTED NET CASH OUTFLOWS
587,869,462,536.07
530,461,809,766.56
23. LIQUIDITY COVERAGE RATIO (%)
143.35%
141.51%
________________________
1
2
3
Unweighted values must be calculated as outstanding balances maturing or callable within 30 days (for inflows and outflows).
Weighted values must be calculated after the application of respective haircuts (for HQLA) or inflow and outflow rates (for inflows and outflows).
Adjusted values must be calculated after the application of both: (i) haircuts (for Total HQLA) and inflow and outflow rates (for Total Net Cash Outflows);
and (ii) applicable cap and ceiling (i.e., cap on Level 2 assets for HQLA and ceiling on inflows).
Datapoints used were the simple average of the quarterly consolidated report as of March 31; June 30; September 30 and December 31, for both 2022 and 2021.
________________________
The LCR results have been stable and above the regulatory floor of 100% over the past 4 quarters in 2022. The LCR has improved year-on-year (Y-o-Y) by 1.84% driven mainly
by an increase in HQLA and relatively stable cashflows. Majority of the Group's HQLA is comprised of Level 1 assets, primarily in the form of cash on hand, cash reserves with
the BSP, overnight and term deposits with the BSP, and eligible securities representing claims on or guaranteed by the Philippine National Government.
One of the operating principles of the Group is to ensure that it has a diversified funding base, taking into account all available market opportunities. Sound liquidity
management requires that the sources of funds available are diversified, particularly in terms of maturities and market share. The Group’s primary funding source comes from
regular customer deposits, which is composed largely of lower-cost funds. In addition to regular deposits, the Group also opportunistically raises funding through the issuance of
Long Term Negotiable Certificate of Deposits (LTNCD), peso denominated bonds, and foreign currency senior debt instruments. The Group aims to finance current and future
asset growth in the most cost-effective manner possible.
The Group's outstanding derivative contracts are comprised mainly of short-term foreign exchange (FX) forwards and swaps, and any potential collateral calls by counterparties
are not significant to impact liquidity. There are also no significant currency mismatches in the LCR.
The Asset-Liability Committee (ALCO) has responsibility for ensuring that Group policy for liquidity management is adhered to on a continual basis, and that Treasury is
responsible for executing liquidity directives and operating within the liquidity policy. Treasury ensures that the funding requirements of all the Business Units (BUs) are
addressed, excess funds are deployed to maximize returns, and regulatory requirements on reserves are complied. As such, all the BUs closely interact and coordinate with
Treasury. The Liquidity Management function is centralized under the Treasury Group for the Parent Bank, and similarly for each major subsidiary of the Group.
All material and significant inflows and outflows that are relevant to the Group’s liquidity profile are captured in the LCR.
243
Corporate Information
COMPANY HEADQUARTERS
BDO Unibank, Inc.
BDO Corporate Center
7899 Makati Avenue
Makati City 0726
Philippines
Trunkline: +63 (2) 8840-7000
Website: www.bdo.com.ph
BRANCHES AND ATMs
For the complete list of BDO branches and ATM locations,
please refer to the Bank’s official website.
STOCKHOLDER INQUIRIES
BDO Unibank, Inc.’s common stock is listed and traded in the
Philippine Stock Exchange under the symbol “BDO”.
Inquiries regarding dividend payments, account status, address
change, stock certificates, and other pertinent matters should
be addressed to the company’s transfer agent:
Stock Transfer Service, Inc.
34/F Unit D Rufino Pacific Tower
6784 Ayala Avenue
Makati City 1200
Philippines
Telephone: +63 (2) 8403-2410 to 12
Facsimile: +63 (2) 8403-2414
Email: stsi.bdo@stocktransfer.com.ph
The Bank will provide, without charge, a copy of the
2022 Annual Report and Financial Statements to its
stockholders upon receipt of a written request addressed to
the Corporate Secretary.
The 2022 Annual Report
and Financial Supplements
and the 2022 Sustainability
Report can be viewed
and downloaded on the
BDO website.
BDO Unibank is regulated by
the Bangko Sentral ng Pilipinas.
https://www.bsp.gov.ph
For concerns, please visit
any BDO branch nearest you,
or contact us thru our 24x7
hotline +63 (2) 8631-8000
or email us via
callcenter@bdo.com.ph.
BDO Corporate Secretary
21/F BDO Towers Valero
8741 Paseo de Roxas
Salcedo Village
Makati City 1226
Philippines
Telephone: +63 (2) 8840-7000 local 37610
Email: corporate_secretary@bdo.com.ph
INVESTOR INQUIRIES
BDO Unibank, Inc. welcomes inquiries from analysts, investors,
and the financial community. Please visit www.bdo.com.ph or
contact BDO Investor Relations & Corporate Planning.
BDO Investor Relations & Corporate Planning
31/F BDO Towers Valero
8741 Paseo de Roxas
Salcedo Village
Makati City 1226
Philippines
Telephone: +63 (2) 8840-7000 local 36069
Email: irandcorplan@bdo.com.ph
244
