2014 Annual Report

ANNUAL REPORT 2014
CHINA BANKING CORPORATION

China Bank Building
8745 Paseo de Roxas corner Villar Street
Makati City 1226, Philippines
www.chinabank.ph
C hina Banking Corporation (China Bank), stock symbol CHIB, was
incorporated on July 20, 1920 and commenced business on August 16,
1920 as the first privately-owned commercial bank in the Philippines, ANNUAL STOCKHOLDERS’ MEETING
catering initially to the needs of Chinese-Filipino businessmen. It played
May 7, 2015, Thursday, 4:00 p.m.
a key role in post-World War II reconstruction and economic recovery Penthouse, China Bank Building
through its support to businesses and entrepreneurs in critical industries. 8745 Paseo de Roxas corner Villar Street
China Bank was listed on the local stock exchange by 1947, and acquired
its universal banking license in 1991. The Bank serves the corporate,
commercial, middle, and retail markets with a wide range of SHAREHOLDER SERVICES
domestic and international banking services. It is one of the For inquiries or concerns regarding dividend payments, account status, We welcome letters or all such communications on matters pertaining
largest universal banks in the country in terms of assets, change of address or lost or damaged stock certificates, please get in touch to the management of the Bank, stockholders’ rights, or any other bank-
with: related issues of importance. Stockholders who wish to communicate with
capital base, and market value. any or all of the members of the China Bank Board of Directors may send
letters to:
Stocks and External Relations
Office of the Corporate Secretary Atty. Corazon I. Morando
China Banking Corporation Vice President and Corporate Secretary
11/F China Bank Building China Banking Corporation
8745 Paseo de Roxas corner Villar St. 11/F China Bank Building
Makati City 1226, Philippines 8745 Paseo de Roxas corner Villar St.
Contact persons: Email: ocsstocks@chinabank.ph
Atty. Leilani B. Elarmo
Atty. Julius L. Danas
Pamela D. Pablo INVESTOR INQUIRIES
Tel. No.: (+632) 885-5133 We welcome inquiries from investors, analysts, and the financial community.
Fax No.: (+632) 885-5135 For information about the developments
Email: lbelarmo@chinabank.ph at China Bank, please contact:
jldanas@chinabank.ph
ocsstocks@chinabank.ph Alexander C. Escucha
Senior Vice President and Head
Stock Transfer Service, Inc. Investor & Corporate Relations Group
Unit 34-D Rufino Pacific Tower China Banking Corporation
6784 Ayala Avenue 28/F BDO Equitable Tower
Makati City 1226, Philippines 8751 Paseo de Roxas
Contact persons: Tel. No.: (+632) 885-5601
Antonio M. Laviña Email: investor-relations@chinabank.ph
Contents Ricardo D. Regala, Jr. Website: www.chinabank.ph
Tel. No.: (+632) 403-2410; 403-2412; 403-9853

2 Performance Highlights Fax No.: (+632) 403-2414
4 Message to Stockholders
10 Operating Highlights
22 Human Resources
28 Corporate Social Responsibility
30 Consumer Protection Post-consumer Recovered Fiber
32 Corporate Governance
About The Cover 54 Board of Directors The cover of this China Bank Annual Report is printed on Radiance New Evolution White 280gsm. Radiance is an
uncoated felt-marked paper that captures the exrtraordinary printing definition and effects of a coated paper,
The bridge represents both 58 Management Committee certified by the Forest Stewardship Council (FSC) which promotes environmentally appropriate, socially beneficial, and
China Bank’s historical track record 60 Senior Officers economically viable management of the world’s forest.
and legacy of enduring partnerships 63 Management Directory
with generations of customers and its 64 Financial Statements The main report is printed on Limited Edition Fine Smooth 90gsm, 30% Recycled waste and FSC certified fibres. Made
trajectory of future growth serving carbon neutral, Limited Edition Fine Smooth is produced with the use of 100% wind-generated electricity. All pulps
168 Branches are made elemental chlorine free helping to reduce harmful by-products.
more customers in more areas, with 178 Off-Branch ATM Locations
more products and services. The bridge
191 Business Centers The Financial Statement of this report is printed on FSC certified 9 Lives Recycled Offset 100% Recycled 80gsm that is
also represents the Bank’s timeless role made from 100% post consumer fiber.
182 Subsidiaries and Affiliates
as a financial intermediary between
savers and borrowers — entrepreneurs
192 Products and Services
to grow their businesses and families
to fulfill their dreams.
1
Vision
Drawing strength from our rich history, we will be the
best, most admired, and innovative financial services
institution, partnering with our customers, employees,
and shareholders in wealth creation.
Mission
We will be a leading provider of quality services
consistently delivered to institutions, entrepreneurs, and
individuals, here and abroad, to meet their financial
needs and exceed rising expectations.
We will be a primary catalyst in the creation of wealth

for our customers, driven by a desire to help them
succeed, through a highly motivated team of competent
and empowered professionals, guided by in-depth
knowledge of their needs and supported by leading-edge
technology.
We will maintain the highest ethical standards, sense of

responsibility and fairness with respect to our customers,
employees, shareholders, and the communities we serve.
Core Values
• Integrity
• High Performance Standards
• Commitment to Quality
• Customer Service Focus
• Concern for People
• Efficiency
• Resourcefulness/Initiative
2 CHINA BANK ANNUAL REPORT 2014
PERFORMANCE HIGHLIGHTS
NET INCOME RETURN ON EQUITY TOTAL RESOURCES TOTAL DEPOSITS

In Billion Pesos In % In Billion Pesos In Billion Pesos
6 18 500
5 15 400
471
15.37
4 12
5.0
5.1
5.0
5.1
5.1
414
13.81
300
399
354
12.22
3 9
324
11.31
200
9.90
257
272
2 6
263
213
216
1 3 100
0 0 0
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
STOCKHOLDERS’ EQUITY TOTAL CAR EARNINGS PER SHARE

In Billion Pesos In % In Pesos
60 20 4
50 16
57
3
40
16.34
16.26
3.25
3.21
12
16.00
3.27
3.22
45
3.08
15.39
14.88
43
30 2
40
35
8
20
4 1
10
0 0 0
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
CASH DIVIDENDS PAID BRANCHES ATM

In Billion Pesos STOCK DIVIDENDS PAID
In Billion Pesos
2.0 700
600
1.5 661
500
1.59
1.56
561
400
1.42
511
1.29
1.27
1.0
470
1.30
1.18
475
1.17
431
300
1.07
0.98
367
316
0.5 200
293
269
100
0 0
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
MARKET CAPITALIZATION
In Billion Pesos
90
75
84
81
60
71
45
47
47
30
15
0
2010 2011 2012 2013 2014
PERFORMANCE HIGHLIGHTS 3
2012 2013 2014

For the Year (In Thousand Pesos)
Net Interest Income 8,062,341 9,935,991 14,088,747
Non-Interest Income 5,793,615 5,160,592 4,759,276
Operating Income 13,855,956 15,096,582 18,848,023
Provision for Impairment & Credit Losses 236,756 414,336 440,901
Operating Expenses 8,193,901 8,907,262 11,728,645
Net Income Attributable to Equity Holders of the Parent Bank 5,018,197 5,103,258 5,116,397

At Year-End (In Thousand Pesos)
Total Resources 324,160,047 413,697,923 470,939,997
Loan Portfolio (Net) 190,100,306 220,540,903 290,418,730
Investment Securities 66,431,353 66,921,227 59,026,895
Total Deposits 271,977,240 354,268,203 399,301,544
Stockholders’ Equity 42,738,205 45,399,699 56,566,049
Number of Branches 316 367 470
Number of ATMs 511 561 661
Number of Employees 5,198 5,594 7,245

Key Performance Indicators (in %)
Profitability
Return on Average Equity 12.22 11.31 9.90
Return on Average Assets 1.71 1.45 1.12
Net Interest Margin 2.90 2.98 3.30
Cost to Income Ratio 59.14 59.00 62.23
Liquidity
Liquid Assets to Total Assets 36.47 42.80 32.91
Loans to Deposit Ratio 69.90 62.25 72.73
Asset Quality
Non-Performing Loans Ratio 2.55 1.99 2.24
NPL Cover 134.88 146.62 101.25
Capitalization
Capital Adequacy Ratio (Tier 1) 15.15 14.50 13.95
Capital Adequacy Ratio (Total CAR) 16.00 15.39 14.88

Shareholder Information
Market Value
Market Price Per Share (In Pesos) 45.061/ 53.561/ 47.00
Market Capitalization (In Thousand Pesos) 70,863,933 84,232,038 80,671,473
Valuation
Earnings Per Share (In Pesos) 3.221/ 3.271/ 3.08
Book Value Per Share (In Pesos) 27.391/ 29.091/ 34.03
Price to Book Ratio (x) 1.65 1.84 1.38
Dividends
Cash Dividends Paid (In Thousand Pesos) 1,415,852 1,557,449 1,589,272
Cash Dividends Per Share (In Pesos) 1.2 1.2 1.0
Cash Payout Ratio (In %) 27.89 31.04 31.14
Cash Dividend Yield (In %) 2.66 2.24 2.13
Stock Dividends Paid (In Thousand Pesos) 1,179,976 1,297,874 1,271,428
Stock Dividends Per Share (in %) 10 10 8
1/
Restated to show the cumulative effects of stock rights and stock dividends.
HANS T. SY GILBERT U. DEE RICARDO R. CHUA

Chairman of the Board Vice Chairman of the Board President and Chief Executive
Officer
MESSAGE TO STOCKHOLDERS 5
DEAR FELLOW SHAREHOLDERS,
W e are delighted to report that

2014 was a good year for China
• For the third straight year, China
Bank was a PSE Bell Awardee for
Corporate Governance. As with the
countries and contributed to the rising
volatility in the financial and cross-border
markets.
Bank. We laid the groundwork that previous years, your Bank was the In the Asia Pacific region, the
will allow us to take full advantage only banking institution among the Philippines’ GDP growth of 6.1%, second
of future opportunities. We top five awardees out of the 260 only to China, was driven by the strong
achieved milestones that added publicly listed companies (PLCs) performance in the manufacturing,
value to our brand and ultimately, in the Philippine Stock Exchange. construction, and services sectors. The
for our stakeholders. We delivered We also received international robust inflow of OFW remittances and
strong operating performance that recognition for upholding BPO revenues combined with fiscal
puts China Bank in a position of governance best practices. China stimulus from the gradual roll-out of
fundamental strength. Bank was named Outstanding infrastructure projects provided the
Company for Corporate Governance impetus for a broader-based household
• Full-year consolidated net income by Corporate Governance Asia, and investment spending. Meanwhile,
reached P5.11 billion, underpinned and was ranked among the 50 the excess liquidity flowing through the
by the steady growth in core highest-scoring PLCs in the ASEAN financial system kept interest rates close
business operations. This income Corporate Governance Scorecard and to their historical lows and sustained the
performance translated to a return Assessments 2013-2014. yield-driven demand for real estate and
on equity of 9.90% and return on
assets of 1.12%.
• Net interest income rose by 42%
“THE BANKING SECTOR FACED GREATER
on the back of higher interest REGULATORY CHALLENGES IN 2014 WITH THE
revenues from lending that was
matched by a decline in the cost
IMPLEMENTATION OF BASEL III STANDARDS AND
of funding. Non-interest income, THE LIBERALIZATION OF THE BANKING INDUSTRY
excluding trading gains, grew 30%
to P4.22 billion with the rebound
AT THE ONSET OF THE ASEAN ECONOMIC
in foreign currency trading and INTEGRATION. ”
growth in service charges and bank
commissions. Total operating income Indeed, we made good progress, and we equity investments. As portfolio investors
reached P18.85 billion, up 25% did so amid the continuing challenge retreated to the US bond market, the
year-on-year from recurring accrual of a difficult global macroeconomic Peso exchange rate averaged at P44.40:
revenues and the contribution environment. US$1.00.
of the thrift banking businesses. Due to lingering concerns over the
Net interest margin improved to The Global Economy: Still Struggling phase down of the US Federal Reserve’s
3.30% from 2.98% in 2013 as we to Gain Momentum quantitative easing program, the mood
capitalized on opportunities to grow The global economy showed uneven in the capital and stock markets turned
our commercial and retail banking gains last year, with the US registering its cautious – dampening securities trading
businesses. strongest growth in a decade, spurred volumes and asset valuations during
• Aggregate asset levels expanded by the recovery in the job markets and the first three quarters of the year.
14% to P470.94 billion, from production sectors amidst moderate Meanwhile, banks shifted more resources
robust lending demand from inflation and low interest rates. On the to lending, accelerating loans growth
our corporate, commercial, and other hand, the Eurozone and China faced to 21%. As the clearer monetary policy
consumer segments, that increased greater hurdles from the slowing export directions, easing inflation, and strong
total loan portfolio by 31% to and domestic demand as well as from macroeconomic fundamentals set in,
P297.65 billion. The loan build-up shifts in their socio-economic policies. investors gradually regained momentum
was mostly funded by the 13% Overall, geopolitical unrest combined with in the fourth quarter. In spite of the
run-up in customer deposits to the sharp drop in oil prices dampened recovery in securities prices, trading
P399.30 billion. prospects for petroleum-exporting gains for the industry declined year-on-
year, reducing industry-wide returns on policy. Resources of the banking system pace of branch expansion by leveraging
equity to 10.96% from 13.65% in 2013. rose 12%, as the excess market liquidity on the geographical presence, business
The banking sector faced greater was channelled to loans and short-term expertise, and human talent of our
regulatory challenges in 2014 with the investments in government papers. thrift banking subsidiaries. As a leading
implementation of Basel III standards player in SME finance, Plantersbank
and the liberalization of the banking China Bank: Building and Becoming hastens the build-up of the savings
industry at the onset of the ASEAN the Bridge to Greater Opportunities bank infrastructure and critical mass of
economic integration. Moreover, the Driven by our mission to be customers that we need to become a
Bangko Sentral ng Pilipinas (BSP) required a catalyst of wealth creation for our major player in this highly competitive
all local banks to subject their real estate customers, we forged ahead. China market. Collectively, the 78 Plantersbank
loans to stress testing and measure the Bank marked several milestones in 2014, branches and the new branch openings
effect of the haircut on asset values beginning with the purchase and BSP – 19 for the main bank and six for
on capital adequacy. These measures approval of the acquisition of Planters CBS—offer our customers a total of 470
required banks to build up their common
equity buffer, assess and measure risks
“AS OUR BRANCH NETWORK EXPANDED,
at a system-wide level, channel more
capital into lower risk-rated assets, and BANK-WIDE DEPOSITS REACHED A NEW HIGH
set prudent limits on industry exposures.
Banks likewise confronted thinning net
OF P399.30 BILLION BY YEAR-END, DRIVEN BY THE
interest margins from the downtrend in 24% INCREASE IN CASA DEPOSITS.”
market rates, excess liquidity, and keen
competition for loan business. Despite Development Bank (Plantersbank), locations nationwide to do their banking.
the spate of stock rights and Tier 2 capital followed by our successful return to China Bank’s organization was
offerings from domestic banks, average the capital markets, and then closing extensively revamped in 2014 to
CAR dropped from 17.65% in December the year by raising our stake in the establish a competitive and customer-
2013 to 16.32% in September 2014. In bancassurance joint venture Manulife centric organization by creating three
addition, BSP Circular 855 mandated China Bank Life Assurance Corporation major engines of growth: Relationship
the enhancement of the existing credit (MCBLife) from 5% to 40%. These bold Banking Segment, Financial Capital
evaluation, approval, and reporting moves were intended to strengthen Markets & Investment Segment, and
processes, with additional capital our 94-year banking franchise, expand the Savings Bank. We likewise set
buffer in the pipeline to be required for the product menu, and consolidate up a task force to align the structure,
domestic-systemically important banks market positioning, with the objective product lineup and operating policies
(DSIBs), minimum liquidity coverage ratio of becoming a top-tier player in the of both thrift banks in a manner that
(LCR), and stable funding levels. industry. We have also sustained our would best leverage on their combined
In spite of these hurdles, the strategy to build up recurring revenues strengths and business synergy, which
Philippine banking industry continued from lending, investing, and service would diversify and augment traditional
to exhibit a positive performance. Fitch delivery that bolstered net margins and revenue streams for the China Bank
Ratings recently affirmed its investment market share in the face of continuing Group. Plantersbank contributed P1.85
rating of BBB- on the Philippines, decline in interest rate and tighter billion in operating income in 2014,
whereas both Standard and Poor’s and regulatory environment. accounting for 49% of the growth in
Moody’s upgraded their sovereign The acquisition of Plantersbank, the operating income for the Bank. CBS
ratings. For the second year in a row, the country’s largest development bank, was also continued to widen its reach in key
Philippine banking system was the only a key step in consolidating our foothold urban communities by offering extended
one among those monitored by Moody’s in the SME sector as well as the thrift banking hours throughout the week and
that merited a positive outlook on the banking business which started with opening mini-branches at selected malls
basis of the country’s robust economic the purchase of Manila Bank in 2007, and supermarkets.
growth, consistent debt servicing, sound followed by Unity Bank in 2013. This was Retail Banking Business, formerly
capitalization, and effective monetary in line with our strategy to accelerate the known as the Branch Banking Group,
us to offer more banking convenience

and set of service options to a greater
number and variety of customers, in
a cost-effective and timely manner.
Our goal was to provide clients with
a consistent and secure banking
experience across all service channels
whether they do their banking through
over the counter, ATM, mobile banking,
or China Bank Online. Our network of
661 ATMS complemented the branching
strategy by delivering banking services to
more locations 24/7, and in the process,
freeing up the branch personnel to
handle more customized and complex
transactions. The integration of the CBS-
HENRY SY, SR. Plantersbank ATM network into a single
Honorary Chairman operating platform is in progress. In 2014,
and Advisor to the Board
transactions done on our electronic
channels accounted for 68% of total
transactions.
was reorganized into 27 branch areas As our branch network expanded, We regrouped our corporate,
reporting to eight regional offices bank-wide deposits reached a new commercial, and consumer banking
to strengthen marketing focus at high of P399.30 billion by year-end, businesses under the Relationship
every level and facilitate performance driven by the 24% increase in current Banking Segment as part of our strategy
monitoring and feedback processes. and savings accounts (CASA) deposits. to align the business development and
By rationalizing the span of control at The high levels of market liquidity and account management processes across
the area and regional levels, enhancing the prevailing low interest rates were multiple product lines and customer
the business and operational skills of the main reasons for the shift from sectors. This move also supports our
branch personnel, and devolving credit investments to short-term funds, as drive to standardize credit evaluation
evaluation down to the area and branch investors positioned themselves for and documentation procedures for
levels, we would move closer to our goal possible rate adjustments. Second, borrowers, more accurately monitor
of creating more full service branches led there was greater collaboration loan quality on a customer and portfolio
by well-rounded and entrepreneurially- between our Institutional Banking level, as well as develop expertise across
minded branch heads. This setup Group and branches to capture the cash industries and customer segments.
will shorten the service turnaround management requirements of both At the macro level, we began the task
and decision-making time without small business and national accounts of revisiting and upgrading our credit
compromising credit underwriting in the context of financial supply chain processes across the group to meet the
standards, internal controls, and branch ecosystems. Ultimately, the buildup requirements of BSP Circular 855. China
profitability. It will signal to the client in low cost funding combined with Bank’s commercial lending business grew
that there is a team that supports his the yield increase on earning assets, by 43% year-on-year as we built up our
needs. Our network strategy centered improved our net interest margin, relationship with the SME and corporate
on building the banking presence in the together with our low-cost deposits to accounts at the branches. On the other
capital region and key provincial cities total deposits and loans-to-deposits hand, consumer loans—consisting of
for the main bank and the metropolitan ratios to 48% and 73%, respectively. auto financing, mortgage loans, and
suburban areas, Central Luzon, and This branch expansion came in developer loans—expanded by 45%,
underbanked provincial centers for the tandem with the upgrading of our with the savings bank contributing 70%
savings bank. alternative channels platform, enabling of the total growth, because of the uptick
in marketing and referral programs, house operations in 2015 will sharpen continuous product development, and
streamlined service turnaround time, and our market focus in this business specialized training for our relationship
more competitive loan pricing. and allow greater flexibility and managers.
We maintained our prudent stance competitiveness in bidding for future The successful test run of our
with regards to the securities trading deals. credit card product late last year paved
books, as movements in interest rates Total assets under management the way for the launching of China
could trigger corrections in asset values. for the Trust industry declined by 2% Bank MasterCard in 2015. The timing
Consequently, more bank funding was year-on-year, and have yet to recover coincides with the rapid growth in our
channeled into loans as a means of from their peak last 2012 after the consumer and thrift banking business,
growing recurring revenues as well as government limited investments in SDA and subsequently, the demand for cash
hedging against market volatility amid in 2013 and released new tax rules for flow management and cashless payment
the increasing possibility of a rebound in participation in long-term investments. services in these markets. Credit cards
the US interest rates. The Bank again cut Meanwhile, China Bank’s aggregate trust are a potent tool to sustain customer
down government securities holdings base totaled P71.20 billion, up 5.6% year- loyalty, monitor credit history, and cross-
by 12%— which further reduced the
share of financial investments to total
assets to 12.53% from 16.18% in 2013.
“WE SUSTAINED OUR COMMITMENT TO
Consequently, trading gains fell by P1.37 MAINTAIN THE QUALITY AND COMPETITIVENESS
billion to P535 million from the decline
in held-for-trading positions and fewer OF OUR BANKING SERVICES EVEN WITH THE
opportunities to lock in valuation gains. RAPID GROWTH IN CUSTOMER BASE.”
Total fee-based income comprised 21%
of gross revenues as we continued to
diversify our non-interest income streams on-year with trust and other fiduciary sell products and services that would
away from opportunistic securities accounts increasing 39% year-on-year empower our clients to take charge
trading income. Foreign exchange gains that now comprise 49% of assets under of their financial and personal goals.
recovered to P329.94 million as the Bank management. Our unit investment trust China Bank credit cardholders will enjoy
repositioned for a strengthening of the funds have consistently ranked among the privilege of greater security from
US Dollar against the Peso. the industry’s top performers in terms the latest EMV and NFC technology,
As more corporate borrowers opted of returns. We also launched the China including easy phone and online
to raise financing through capital and Bank Short-Term Fund and China Bank access to our personalized customer
debt issuance, our Investment Banking Intermediate Fixed Income Fund to meet service and wide menu of financial
Group continued to provide clients with our clients’ liquidity requirements while products. Going forward, we see the
access to the capital markets through earning potentially higher returns. card business becoming a significant
key roles in securities underwriting, debt We deepened our commitment driver of fee-based income and a catalyst
origination, and loan syndications. The to our bancassurance business by for expanding the retail client base and
group aimed to capture the expanding increasing our stake in MCBLife from diversifying loan portfolio.
financing requirements of corporate and 5% to 40% last September – laying the By balancing the pace of our
commercial accounts and the stream groundwork for the eventual upgrade business expansion against the new
of fees arising from these deals as a of the marketing partnership into a capital adequacy requirements under
lead or joint arranger, with bottomline full-fledged insurance company. China Basel III, we ensured that China Bank
contribution now comprising 11% of Bank ’s bancassurance products provide had enough equity buffer to support
total service fees and commissions. clients with a selection of high-yielding sustained growth. We issued almost
China Bank’s growing market visibility investments bundled with life & health 162 million common shares as part
is measured by the number of deals for insurance coverage. We saw the tie-up of our rights offer last May, which
corporate and commercial accounts with Manulife as an avenue to increase increased our equity base by 25% to
which increased by 72% year-on-year. our recurring fee-based revenues and P56.57 billion. The one rights share for
The planned spinoff of our investment maximize opportunities for cross-selling, every 8.834 existing common shares
offer was oversubscribed by our existing matching of skills with job postings and stays firmly on track towards meeting
shareholders, with proceeds to be used development of banking expertise to our stakeholders’ expectations. We are
for our branch and business expansion. prepare our people to compete and truly grateful for your invaluable trust
Our 2014-end CET 1 and Tier 1 capital excel in the field. With this in mind, our and support. The prospects for banking
ratio of 13.95% ranks among the best in Human Resources Division launched remain as challenging as ever, but we
the industry, and China Bank remains the six supervisory and management are excited by the possibilities created
only bank with no Tier 2 capital issues. development programs in 2014, to by our stronger business partnerships.
Moreover, your Bank is the only bank that fast track officer candidates, as well as We look forward to continuing on the
has been consistently declaring both training programs centered on customer journey with you as we humbly endeavor
cash and stock dividends for over half a service, sales management, leadership, to transform these opportunities into
century, with one of the highest payout project management and execution. greater value for you, our customers, our
ratios in the industry of 31%. In 2014, the The recent reorganization into business people, and the communities we serve.
Board of Directors approved the 8% stock clusters will support the eventual
dividend per share and cash dividends of decentralization of decision-making and
P1.00 per share for a total dividend payout empower our people—a move which Sincerely,
of P1.60 billion. Moreover, the new shares would benefit both the Bank and our
from the stock rights offering were also clients in the long run. Promoting a
entitled to the cash and stock dividends. culture of entrepreneurship and quality
We sustained our commitment to service throughout the organization
maintain the quality and competitiveness will be a major undertaking, given the
of our banking services even with the magnitude of our banking organization HANS T. SY
rapid growth in customer base – which and the diverse backgrounds of our Chairman of the Board
is set to double over the next five years. newest members.
In this regard, we continuously invested On behalf of the Board of Directors
in the latest banking technology, process and the Management Team, we express
improvements, and backup systems to our deep appreciation to Peter S. Dee,
ensure the security and reliability of all who retired as China Bank President &
banking transactions. Your Bank entered CEO last August 31, 2014, for his three GILBERT U. DEE
the final implementation phase for its decades of dedicated and faithful service Vice Chairman of the Board
Finacle Core Banking system— the most at the helm of China Bank. His very
ambitious and extensive technological able leadership guided the Bank to an
upgrade to-date, which would run all industry-best balance sheet strength
major business, middle office, and back during the 1997 Asian Financial Crisis and
office applications for the entire China the tougher regulation that followed, as RICARDO R. CHUA
Bank Group on an open system platform. well as steered China Bank in its most President & CEO
We are also working to rationalize and profitable years. We are fortunate that
streamline transaction processes to he continues to serve on the Board of
“ORIGINAL SIGNED”
tighten turnaround time and realize Directors and the Executive Committee.
operational efficiencies— which include Our COO of 20 years, Ricardo R. Chua,
the centralization of key support who brings with him a wealth of
functions such as our credit investigation, experience from almost 40 years of
manpower planning, collateral appraisal service to China Bank, is now our new
and servicing of off-site ATMs. President & CEO.
We continued to professionalize The reorganization and the ongoing
and develop our corps of over 7,200 deepening of the senior management
employees at China Bank, China Bank bench are just the first steps towards our
Savings, and Plantersbank, with the goal goal to invigorate and strengthen the
of maximizing functional efficacy, proper organization, and ensure that China Bank
Operating
Highlights
Our objective was to be among the top five banks in the country in terms
of resources and size of the branch network. Our five year plan articulates
our strategies to generate greater value from the network expansion, new
businesses, and stronger presence in the consumer and SME markets. In the
process, we will build a more responsive, cost efficient, and market-focused
organization that is primed to meet the challenges of a fast-changing
financial environment.
As of December 31, 2014, China Bank is the fifth largest private universal
bank in the Philippines with P471 billion in assets and 470 branches. We are
now building a stronger brand to grow in all market segments and achieve
our business goals of doubling our client base and market size by 2019.
OPERATING HIGHLIGHTS 11
2 014 was an eventful year of

change for China Bank. We focused
BALANCE SHEET
HIGHLIGHTS
on further strengthening our
Deposits
operations, calibrating our approach
to be in sync with the changing P399B
business landscape and evolving
Loans
customer needs and preferences.
Building on the foundations that P298B
enable us to leverage opportunities
for profitable and sustainable Assets up 13%
growth is a continuous process, and
in 2014, we made good progress.
P471B
up 31%
up 14%
BUSINESS DRIVERS We reorganized in 2014 as part of an ongoing strategy to build a more responsive
and competitive China Bank. The new structure highlights three engines of growth:
Total Branch Network Relationship Banking, Financial Capital Markets and Investment, and Savings Bank.
With these client-focused businesses, we are improving customer engagement on all
470 layers of the organization, responding faster to our clients’ needs and requirements,
China Bank: 314 and delivering appropriate and timely products and service offerings.
CBS & Plantersbank: 156
ATM Network
661 FINANCIAL CAPITAL
China Bank: 523 RELATIONSHIP MARKETS KEY SUBSIDIARIES/
CBS & Plantersbank: 138 BANKING AND INVESTMENT OTHER BUSINESS UNITS
SEGMENT
Manpower Complement
7,245 Retail Banking
Business Segment
Lending Segment
– Investment Banking
– Treasury
– China Bank Savings, Inc.
– Planters Development Bank
China Bank: 5,239 – Private Banking
CBS & Plantersbank: 2,006
No. of Customers / Accounts – Branch Banking

– Binondo Business
Institutional
Banking
– Trust
– Manulife China Bank Life
Assurance Corporation
1.4 M Center – Commercial

Banking
(MCBLife)
– China Bank Insurance
Brokers, Inc.
China Bank: 1.12 M – Corporate
Banking
CBS & Plantersbank: 0.24 M Consumer Banking
– Consumer
Banking
– Remittance
Business
– Credit Card
Relationship
Banking
The reorganization, combined
with continuous improvements
and personnel training, enabled
us to cultivate fuller customer
relationships in 2014. With
an improved targeting of
customer segments and better
understanding of these various
segments’ banking needs, we
are anchoring and engaging
our diverse clientele more
thoroughly and effectively.
We say, “Your success is our

Extensive training for area heads, account officers, branch and LPC business,” and we mean
officers, and staff to improve their credit know-how and enhance it. We endeavor to build
their customer service and marketing skills
long-term relationships to
be the right banking partner
to our customers, providing
Leveraged cutting-
More China Bank Reorganized Improved the edge technology to the banking products and
branches, ATMs, and China Bank’s processing and automate processes, services that they need,
personnel serving branch network handling of loan enhance efficiency
customers applications and security, and at the level of care and
deliver high quality attention they deserve,
solutions to
customers when and where they need
them. These are some of the
New systems: improvements we made in
+19 More hands-on supervision From 5 Loan Processing • Infosys FCBS (Finacle Core
of branches, higher level Centers (LPC) to 9 to Banking System) 2014 to connect more closely
branches of interaction, and faster expedite loan processing • Altitude IVRS and Call Center
System with our customers and to
response to branch and
• Alaric Authentic System (ATM
customer issues Standardized credit proposal continue to live up to our
+18
ATMs From 3 Regions to 8, cutting
formats for commercial and
more complicated accounts
switch)
• Compass+ TranzWare brand promise.
the number of branches to ensure the availability of Online and TranzWare Card
handled by a region head critical information vital to Management System
+300
employees
by 60% credit decision • ASG View Direct for
eStatement (E-SOA system)
From 23 Areas to 27, Instituted a fast lane for Systems upgrades:
so area heads only handle simple loan renewals with • Carnelian Remittance System-
10 to 12 branches a structured credit guide Front Office & Web Service
checklist based on the 5 • AMLA Base 60 System
Cs of credit to expedite the • IBM Domino Email and
evaluation process Application System
• Teller Terminals upgrade
(FCBS ready)
We put a lot of infrastructure and

technology to provide the best
combination of value, accessibility,
and convenience for our customers.
Our branches are still the primary
customer relationship channel where
more personal service and in-depth
interactions occur, including advisory
services, cross-selling and up-selling,
and overall relationship management.
Our vast branch network is complemented by

up electronic banking channels and touch points,
RETAIL BANKING 113% and together, they enhance customer experience,
BUSINESS HIGHLIGHTS improve revenues, and reduce costs. With China
Bank Online (Internet and mobile banking), China
CASA deposits Bank App, China Bank Tellerphone, and China Bank
up 22% TellerCard (ATM), our customers can choose how,
when, and where they want to bank with us.
Gross loans
up 19%
Transactions via
Operating Income e-channels* accounted
for 68% of all customer
up 19% up up transactions in 2014
11% 19%
CHINA BANK CHINA BANK CHINA BANK

APP TELLERCARD ONLINE
DOWNLOADS HOLDERS ENROLEES
* E-channel transactions include ATM transactions (on-us + acquirer + issuer + POS),

TellerPhone, China Bank Online and Mobile Banking transactions.
11% 19%
up up
Credit plays an important role in our

customers’ lives, and China Bank,
through the Lending Segment, has that
crucial job of providing credit to help
in life changing moments like buying a
car or a house, or starting or expanding
a business, and now, even in everyday
needs like purchasing groceries on
credit.
Consumer lending was brisk in 2014 despite our lack of advertising efforts. While
our competitors spent millions on billboards and TV ads, our Consumer Banking
Consumer Loans Group focused on branch-based marketing activities, internal incentive programs,
participating in events, collaborating with other business units to maximize cross-
up 17% selling opportunities, and making our consumer loans more attractive by offering
competitive rates and improving our turnaround time—one day approval for
AutoPlus loans.
The China Bank Credit Cards—China Bank Prime, China Bank Platinum, and
China Bank World MasterCard—made a debut in November 2014. For the
soft launch, they were initially available to China Bank Group employees,
then to clients in February 2015. The public launch is set for August 2015,
coinciding with China Bank’s 95th anniversary. The China Bank Credit Cards
have these basic features: worldwide acceptance at 22 million MasterCard-
accredited merchants, EMV technology for secure card transactions, PayPass
contactless NFC technology for faster and no-signature-required purchases,
and electronic statement of account. In the pipeline are more features and
benefits like the cash advance feature, multiple payment channels, 0%
installment schemes, balance transfer programs, rewards programs, and
other perks and privileges.
US Dollar Remittance
volume
up 50%
As more and more Filipinos are
employed overseas to build a better life
for their families, there is also a need for
more programs, services, and facilities
that promote their well-being and
interests. We enhanced our remittance We understand how crucial a bank’s support is for a business, whether big or small.
offerings, providing not only banking Our account officers, specialists in the sectors in which they operate, work closely
solutions tailored to overseas Filipinos with our commercial and corporate customers, offering the right financial solutions
with the Overseas Kababayan Services, for specific business challenges. And by helping our customers’ businesses grow, so
but also helpful advice in making the did we.
most of their hard-earned money. Our
remittance officers are regular speakers
at pre-departure orientation seminars
(PDOS), discussing money management
tips and how OFWs can invest for a
better future, buy or build a home, or
start their own business with the help
of China Bank. In 2014, we inaugurated
our own PDOS Center at China Bank
Ermita Branch for conducting country- Commercial Loans Corporate Loans
specific PDOS and financial literacy
programs for OFWs.
up 14% up 19%
Major undertakings are underway to

+50 complete our transformation into a
CHINA BANK truly customer-centric organization. In
Launch new products: China Bank
BRANCHES
Credit Cards, China Bank Cash Cards, 2015, we will continue____%
to put in place
China Bank Gift Cards the right elements and tools to serve
+ over 70 our customers better and position
CHINA BANK ATMs New core banking system
implementation China Bank for future growth.
+ over 1,000
CHINA BANK
EMPLOYEES
Financial
Capital
Markets and
Investment
Building strong and lasting
relationships is a priority
for China Bank. We aim
to be trusted and reliable
partners with our individual,
business, corporate, and
institutional customers,
connecting them to experts
and resources within the
China Bank Group to provide
intelligent solutions for their
more complex requirements
and help their portfolios and
investments grow.
In 2014, our Trust Group focused on

Launched Funds in Top 5 in terms of Assets under expanding our range of investment
new UITFs 1-year Return in 2014 Management
solutions to suit the varied risk
China Bank Top 4
P66 B appetites and investment goals of
Short-Term (China Bank) our customers. Leveraging on sound
Peso Money Market Fund
Fund
with ROI of 1.41% P71 B investment principles and the extensive
(Consolidated) knowledge and experience of our fund
China Bank Top 5 Among the top in
Intermediate management professionals to deliver
Peso Balanced Fund the industry
Fixed Income with ROI of 12.86% superior long-term results, we were able
Fund to reaffirm our position as one of the
Top 5 System foremost institutions in the local trust
Total of 7 Dollar Long-Term Bond Fund
upgrade banking industry.
UITF variants with ROI of 6.91%
of TAPS Trust
System to
version 10
* source: www.uitf.com.ph
Our Private Banking Group continued

to provide a richer, more rewarding
private banking experience for our
affluent customers in 2014. With
a team of seasoned Relationship
Managers who work on a dedicated,
“on-call” basis with our private
banking customers and our open-
architecture platform, we offer highly
personalized service and the best-in-
class solutions from other financial
institutions alongside our proprietary
products to optimize our customers’
portfolio.
In 2014, our Treasury Group was a contributor to the Bank’s bottom line by
generating fee-based income thru active participation in the fixed income and
foreign exchange markets. The fixed income distribution team of Treasury also
had an active role in providing treasury product alternatives to our customers.
In light of the changing landscape brought by Basel III and other regulations,
managing our capital and liquidity position became more important. To ensure
stability and continued business growth, our Treasury Group is proactively
PRIVATE BANKING managing the Bank’s capital, liquidity, and market risk on its investments. It took
GROUP HIGHLIGHTS the lead when we raised capital via stock-rights offering in early 2014 to fund the
planned business expansion.
Conducted
Retail Investment
Conferences
in Manila, Cebu, and
Davao Capital funds
P56.6B Fitch Ratings affirmed Type II Derivatives
license approved
SOPRA Wealth including the China Bank’s long-term issuer by BSP in 1Q 2014
Management System P8 billion raised default rating (BB),
Applying for
went live from the stock viability rating (bb), licenses for
rights offering with a stable outlook. Non-Deliverable
Total Capital Forwards and
Net revenues Asset Swap
adequacy ratio
up 70% (Basel 3)
Capital Intelligence affirmed
China Bank’s Financial Strength
product to provide
hedging and
14.88% yield enhancing
Rating at ‘BBB-‘ with
Common equity investment
a stable outlook. alternatives to
Tier 1 ratio
clients
13.95%.
We aim to be a trusted advisor, a

reliable financier, and a major provider
of capital-raising services to enable
our clients to achieve their strategic
goals. Our Investment Banking
Group works closely with public
and private companies to provide
expert financial advisory on complex
strategic decisions and merger and
acquisition transactions, as well as
to originate, structure, and execute
corporate bond and corporate note
offerings, syndicated loans, project
finance, initial public offerings, follow
on offerings, and preferred shares
offerings. In 2014, we solidified
our position as one of the preferred
partners of issuers. SELECTED 2014 TRANSACTIONS
INVESTMENT BANKING
GROUP HIGHLIGHTS
Sole Issue Manager/

Joint Lead Arranger
for 4 Maiden corporate
Notes Issuances totaling
P14.5B In 2015 and beyond, we will continue to work hard for our customers to
maximize their investment opportunities, manage risks, and deliver consistent
Joint Lead Underwriter results. We are implementing process, product, and systems improvements across
for 4 Retail Bond
Issuances totaling the business lines under the Financial Capital Markets and Investment Segment to
make China Bank the best bank for our customers.
P55B
Savings Bank
With a rich history of helping
start-up businessmen grow
their businesses, China Bank
knows all too well that the
most successful entrepreneurs
start out small, that they are
more reliant than big firms on
domestic demand and bank
lending, that they need all
the support they can get to
realize their full potential and
in turn, boost the country’s
economic growth. China Bank
Savings (CBS), established in China Bank acquired in 2007 the
2007 to cater to the needs of oldest savings bank in the country,
Manila Bank, and re-launched it
the consumer/retail and SME
as China Bank Savings. With the
market, made good progress in
acquisition of Unity Bank in 2012—
2014 in creating a more enabling already a part of CBS—and of Planters
environment for micro, small, Development Bank (Plantersbank)
and medium scale enterprises in 2014—to be merged with CBS in
and in advancing China Bank’s 2015—our savings bank subsidiary
will be a bigger, better, and stronger CHINA BANK SAVINGS &
financial inclusion advocacy.
“new bank” that is more capable of PLANTERSBANK
supporting the needs of the consumer 2014 HIGHLIGHTS
and SME market.
CHINA BANK SAVINGS
Top 4
When Plantersbank officially became a Among local thrift
part of the China Bank Group with the banks in:
financial close of the deal on January
15, 2014, CBS embarked on an Total assets
integration journey with Plantersbank
to build a bigger, better, stronger
P68B
“new bank”—a CBS founded on the Total loans
strength of China Bank and the legacy
of Plantersbank, and reorganized P45B
and revitalized to effectively support
Consumer Loans Total deposits
customers’ strategic goals.
grew faster than industry P59B
up 76%
VISION
To be the financial partner of SMEs and Consumers,

leading them to prosperity.
An Integration Committee composed
of China Bank, CBS, and Plantersbank
officials was set-up, but all our MISSION
employees are working together
to ensure that customers are not We understand the needs of our customers, thus we provide
affected by the ongoing integration value enhancing, customer-driven solutions through their
preferred channels.
activities.
We value our employees as they are vital to our success.
With the battle cry “We are One”, the Thus we provide a nurturing environment that attracts, develops
presidents of CBS and Plantersbank and rewards employees.
have been going around the
countryside since May 2014 with a We are responsible members of our communities and we involve
ourselves in their upliftment and development.
small group of their key executives
to visit clients and personally convey We provide our shareholders with sustainable returns.
a clear message of solidarity and a
continued commitment to building We maintain the highest ethical standards and
a stronger platform for SME finance. we are fair in our dealings, ensuring transparency consistent
with good corporate governance.
A series of cocktails was likewise
hosted for Plantersbank’s SME clients
to celebrate the forthcoming merger
and the resulting bigger, better, and
stronger “new bank.”
For employees, Project Pipeline was

launched in June 2014, a mechanism
to support the marketing efforts of
CBS and Plantersbank. A series of
product briefings were conducted to
familiarize the sales groups of both
banks with their respective SME and
consumer loan products and to guide
them in identifying primary target
markets.
Launched
CBS Easi-Padala
The first domestic money transfer service
offered by a local bank
CBS Easi-Funds
Student Loan
An easy and affordable private education
loan program to help parents afford their
children’s college tuition fees
Banking on Your
Future Program
A financial inclusion program with public
As the integration progressed, other milestones were achieved. CBS expanded schools (spearheaded by BSP and BMAP)
wherein pupils can open a
its product offerings with innovative financial solutions that are value-enhancing CBS Easi-Save for Kids account
and customer driven. And to reach out to more customers, CBS opened more with just an initial deposit of P1
branches, extended its banking hours, and introduced the Easi-Banking Branches.
Moving forward, CBS will continue Opened

to remain true to its brand promise, 6 new branches
“Madaling Kausap” (easy to Total of 78 CBS branches
talk to), by developing products in 2014, including
that are responsive to its target 12 Easi-Banking

market’s needs, including offering
branches
in Savemore and SM Hypermart
bancassurance, and by being more
that are open from
accessible—through branches that 10 am to 7 pm,
are close to where customers live and 7 days a week
work and via electronic channels that
provide banking convenience anytime,
anywhere. With the collective efforts
of CBS and Plantersbank employees,
the new CBS will be ideally positioned
to achieve not only its goals, but in
contributing to China Bank’s business
goals of doubling our client base and
market size by 2019 and upholding
Extended
our commitment to our clients that
banking hours
their success is our business. to 4:30 pm
(traditional CBS branches)
Human
Resources
Our manpower drives China Bank’s relentless move
forward. A key strategy to our success all these years is
securing, nurturing, and retaining talented employees to
effectively support our expanding operations and more
importantly, creating a positive working environment
for them to realize their full potential and fulfill our
commitment of being a catalyst of wealth creation for
our customers.
HUMAN RESOURCES 23
I n 2014, our Human Resources

CHINA BANK GROUP EMPLOYEES IN 2014
Division (HRD) continued to
adopt the best practices in
Officers Staff Total
human resource management to
maintain China Bank’s status as 1,155 838 1,993
one of the preferred employers MARKETING
in the Philippines. We closed 675 2,709 3,384
the year with 7,245 China Bank OPERATIONS
Group employees. 484 999 1,483
SUPPORT 156 229 385
TECHNICAL 2,470 4,775 7,245
TOTAL
EMPLOYEE
BREAKDOWN
Individually, our dedicated and hard working employees have diverse talents and
perspectives that lead to more innovative ideas and solutions, and collectively, we
By Gender
are one solid team who share the same values and a strong sense of extended
family that compel us to move in one direction.
34%
Male
66% Recruitment out for vacancies, the position will

Female We believe that an effective be filled up by the most qualified
recruitment, selection, and placement among a field of candidates, both
system is the foundation of a sound from within and outside the Bank.
human resource program. Thus, our Employment/appointment of officers
By Age policy is to hire individuals found are subject to strict compliance with
most qualified for vacant positions the provisions of existing policies,
and with potential for growth and rules and regulations of the Bangko
26%
36 - 50 the capability to assume greater Sentral ng Pilipinas (BSP) prescribing
responsibility. Our HRD hires on the qualifications and grounds for
6% disqualification of Bank officers.
basis of the degree of fitness and
68%
suitability of a candidate to the pre-
35 and below
determined qualification requirements.
Thus, while current employees are
given prior opportunities to try
50 and above
Compensation and benefits linked to performance during the year. financial assistance programs (e.g.
We highly value our human resources Promotions, merit increases, profit housing, car, appliance, and personal
and our compensation policy sharing and performance bonus, loans); employee retirement plan;
reflects this fact. Our employees rely on the individual employees’ leave privileges (vacation leave, sick
are competitively compensated performance rating and contributions leave, maternity/paternity leave,
according to the nature of the job to the Bank. In addition to salary, study leave, and other leaves as
and their qualifications, experience, our remuneration package includes mandated by law); group life and
and performance. We maintain salary fringe benefits like medical, dental, accident insurance coverage; rice
range rates that are at par with hospitalization, and check-up subsidy; meal and travel allowances;
the banking industry and reward programs; car plan (for officers); and bank uniforms.
meritorious performance. Each
position at China Bank carries a Job
Grade (for rank & file employees) or
Corporate Rank (for officers) which Training
determines the position’s hierarchy Our training policy underscores our commitment to the continuous development
in the organization in terms of and education of our employees at all levels. In place are relevant, practical,
compensation and benefits, relative and effective training programs to equip our officers and staff with the
to the banking industry. The Position skills and competencies to achieve our strategic objectives, prepare them
Title defines the general description for higher responsibilities, and enable them to cope with changes in the
of the position or function of an business environment, banking regulations, new technology, methods and
employee (e.g., Customer Relations procedures; promote excellence by providing the needed skills and knowledge
Assistant, Branch Head), while the to obtain and maintain maximum effectiveness in the performance of duties
Job Grade and Corporate Rank and responsibilities; and most importantly, provide the proper motivation for
determines the hierarchy in terms of sustained quality performance.
pay and benefits (e.g. Manager, Senior
Manager, AVP).
HRD conducts periodic reviews of Programs Participants

our salary administration programs conducted
and recommends to the board Officer Training 110
3,846
salary range adjustments that Staff Training 232
6,506
reflect current competitive practices. External 217
427
Opportunities for pay increases are
Executive 45 74
One employee may have attended more than one program.

HUMAN RESOURCES 25
Rewards and recognition

We recognize the importance of connecting performance to rewards. Promotions
are bestowed on deserving employees; in addition, we have a Rewards and
Recognition program to foster a positive and productive working environment
and to motivate employees to always aim for excellence. Specifically for the
branch personnel, we have the Retail Banking Business (RBB) National Convention
where the top performing branches and branch managers are recognized for their
exemplary performance in different categories.
TUITION REFUND While we acknowledge outstanding performance, we also recognize loyalty

PROGRAM FOR and dedication. The highlight of every China Bank anniversary celebration is the
GRADUATE STUDIES Service Awards, wherein we honor employees who have rendered service of 10,
15, 20, 25, 30, 35, and 40 years.
Number of scholars
in 2014:
9
Rewards & Recognition Program Awards
Opportunities for professional training
and development are not limited to o Model Employee Award
our in-house training programs. We o Quick Win Award
sponsor our employees’ participation o Breakthrough Idea Award
in external training programs that o Top Sales and Marketing Award
have a direct relevance to their o Product of the Year
current duties and functions, or will o Deal of the Year
prepare them for a specific new o Project of the Year
function. We also have a Tuition o Special Citation Award
Refund Program for Graduate o Critical Project Completion Award
Studies wherein our employees get o Special Meritorious Circumstances Award
to earn their Masters in Business
Administration (MBA), Master of Arts RBB National Convention Awards
(MA), Finance, Banking, Economics, o Branch of the Year
Statistics, Computer Science, Business o Top CASA (Checking & Savings Account) Contributors
Management, and other courses/ o Top Sales Associates
subjects related to Banking and o Top Performers / Referrors (for Bancassurance, Consumer Banking
Investments for free. As a China Bank Group, Cash Management, Insurance, Private Banking Group, Treasury
scholar, they must maintain passing Group, and Trust Group)
grades, at the same time, a rating of
“Good” or “Average” at work.
Work-life balance Employee communications

We advocate a good work-life We endeavor to maintain our good relationship with our employees to keep
balance to keep our team motivated, them fully involved in their work and committed to our customers and our
healthy, and energized. We observe goals. Aside from providing a rewarding and enriching work experience, we
a 5-day work week, with office offer our employees a safe and nurturing work environment where everyone is
hours from 8.30 am to 5.30 pm, treated fairly and respectfully, and their opinions, concerns, and suggestions are
including a 1-hour lunch break. heard and acted upon. Various policies, resources, and mechanisms are in place
However, for employees enrolled in to resolve employee grievances and appeals, handle employee feedback, deal
graduate programs, flexible working with disciplinary cases, and promote a better understanding of China Bank’s
hours are allowed as long as the operational policies and procedures, Code of Ethics, as well as the relevant laws
arrangement does not affect the and BSP rules and regulations.
branch/department’s operational
effectiveness. Our employees are
entitled to various types of leaves
and enjoy breaks during the declared VP & HRD Head Roskie Testa
(left) envisioned SharePoint Café,
public holidays of the Philippines. launched in January 2014, as
In addition, we have various sports, a venue for candid and honest
communications and getting to
recreational, and health and wellness know colleagues. The relaxed and
programs to provide our employees informal setting of Sharepoint Cafe
makes the participants more open
with activities outside of the with their thoughts, ideas, and
workplace, strengthen camaraderie, concerns, thereby providing HRD
with real insights on why they
and promote community participation
chose China Bank and why they’re
and personal growth. staying, if there are concerns with
their jobs or other aspects of their
employment, what they think about
the new developments, and other
issues that employees may have.
HUMAN RESOURCES 27
Employee Safety and Health In disaster situations, the CSHC and customer service focus, concern for
We are committed to maintain safe the USHC will coordinate with our people, efficiency, and resourcefulness
and healthy working conditions at Operational Risk Department for the / initiative—and together, we embrace
our offices and all our branches. disaster contingency plan and the and drive change and innovation, with
We have a Safety and Health Policy Crisis Management Team. everyone in the team contributing,
to ensure the protection of our In addition, we have a well-stocked making a difference, having fun, and
employees against the dangers of clinic at the Makati headquarters and feeling rewarded for their hard work.
injury, sickness or death. This policy first aid kits at all branches, and a
is supported by the Corporate Safety registered nurse and a doctor (based Trust is the heart of the China Bank
and Health Committee (CSHC) and at the head office) to engage and culture and we demonstrate this
The Unit Safety and Health Committee consult with employees on health by having clearly defined roles and
(USHC). The CSHC is our central concerns and provide advice and expectations, and providing employees
planning and policy making group in supervision on occupational health. with the requisite tools, training,
all matters pertaining to safety and Regular health and safety bulletins and authority to succeed in their
health, which includes updating, as aimed at preventing accidents and careers and contribute to the Bank’s
needed, China Bank’s emergency minimizing cases of work-related ill success. We believe that employees
procedures / evacuation plans in case health are regularly e-mailed to all who feel trusted and respected will
of fire or other significant incident. our employees and are posted in the strive harder to maintain that trust
On the other hand, the USHC has Bank’s intranet system. and are less likely to do something
the primary task of directing our that will result in a loss of trust. In
accident prevention efforts, including Company culture line with this, we have a succession
annually holding fire and earthquake Beyond the compensation and plan that brings a sense of purpose
drills and posting the escape routes, programs to develop and protect and sustainability to employees. HRD
in accordance with the prescribed our employees, what makes China conducts periodic reviews of the talent
Bank safety & health programs and Bank a desirable place to work for pipeline and implements individual
pertinent government regulations. To is our culture. China Bank’s culture, career development plans to ensure
ensure Bank-wide implementation and defined by our mission and vision, is that intellectual capital is not lost, but
observance of Occupational Safety characterized by openness, loyalty, transitioned from one employee to
and Health Standards, each branch/ and more importantly, a trust in another.
department has its own USHC. each other that regardless of how
much the Bank has grown over the
years, the small-company, close-knit
family feel remains. Our employees
conduct themselves and perform
their duties consistent with our core
values—integrity, high performance
standards, commitment to quality,
Corporate Social
Responsibility
China Bank has always been a partner to the

communities we serve. We endeavor to do what
we can to help with social, environmental, and
economic challenges, driven by an innate sense of
obligation to give back, renew our social contract,
and be a responsible corporate citizen.
CORPORATE SOCIAL RESPONSIBILITY 29
I n 2014, we continued to engage our employees and partner with our

customers, various community groups, and charitable organizations to
HELP FOR YOLANDA SURVIVORS
P2M to Philippine Red Cross
aid calamity victims, promote education and resource conservation, and P950K to the Manipulon
Rehabilitation Project (Estancia, Iloilo)
support cultural and community development.
China Bank had a successful donation drive for the survivors of Typhoon
Yolanda, and in January 2014, the proceeds were turned over to the
Philippine Red Cross and the Manipulon Rehabilitation Project (Estancia,
Iloilo) of the Archdiocese of Jaro, Commission on Health Care to help
support their efforts of rehabilitating the affected areas and rebuilding
the survivors’ livelihood towards self-sufficiency.
We sustained our social investments by supporting charities, foundations,

and associations to help the sectors and communities they represent. EMPOWERING THE YOUTH
Foremost is the Child Sponsorship Program of CFC-ANCOP (Answering THROUGH EDUCATION
the Cry of the Poor, a ministry of Couples for Christ) which provides
32 China Bank scholars
primary and secondary education to children of indigent families. We 16 - CFC-ANCOP Child sponsorship program
are also a benefactor of the Ateneo de Manila University scholarship 1 - Ateneo de Manila
12 - Gilbert U. Dee Scholarship
program, and for the deserving children of our own employees, the Dee
Fund (High School)
C. Chuan and the Gilbert U. Dee Scholarship Funds.
3 - Dee C. Chuan Scholarship Fund (College)
In protecting the environment, we believe that less is more. In 2014,

we continued to implement various conservation strategies to minimize
power, water, and paper consumption, as well as to reduce waste
despite our growing workforce and operations. We also encouraged our
employees and customers to adopt and promote sustainable working
and living practices through our “Going Green” campaign.
We cultivate a culture of meaningful giving. Our branches nationwide

supported various fundraising projects, medical missions, and sports and
cultural events to help enhance the quality of life and build goodwill in
GROWING AND GOING GREEN
their own communities. Even our employees supported various worthy
causes, doing what they can to reach out and make a difference in Replaced
flourescent lights in branches and signages
society. with LED bulbs, and A/C system with
newer, more energy-efficient units
Moving forward, we are committed to do more and give back more so Reduced
that society at large will benefit from China Bank’s continued success. printed reports by 30% and
We plan to adopt a comprehensive corporate social responsibility strategy print-as-needed reports by 67%
closely linked with our business strategy to deepen our involvement Implemented
beyond charitable giving. We are confident that China Bank can make E-announcements for employee updates
a significant step forward through a more structured approach to social Discontinued
activities and bigger budget allocations for our various CSR projects and printing of SOA ATM Savings
programs. (Clients may view/request their statement
of account through our e-channels)
Consumer
Protection
The fair, honest, and equitable treatment of our customers is a fundamental
part China Bank’s mission. Led by a Board and Senior Management
committed to strengthen our partnerships with our customers, China Bank
complies with consumer laws and regulations to protect the interests of our
customers at all stages of their relationship with us.
CONSUMER PROTECTION 31
G ood customer service goes beyond a friendly smile and a courteous and
professional handling of transactions. We are committed to being the right partner
to our customers by doing right by them every step of the way. Our customer
handling framework is being updated to ensure compliance with the Bangko CUSTOMER SUPPORT
7 am to 7 pm, 7 days a week
Sentral ng Pilipinas (BSP) Regulations on Consumer Protection (BSP Circular 857) (Press “0” to speak to a phone banker)
released in 2014.
88-55-888
Metro Manila
SECURITY AND FRAUD PREVENTION
Toll-free numbers:
The safety of our customers’ money is our number one priority and we work
hard to prevent our customers from becoming victims of financial crime. We have 1800-1888-5-888 (PLDT)
1800-3888-5-888 (Digitel)
control systems in place to protect and monitor deposits and other similar financial Provinces
assets. We ensure that our branches and e-banking channels are safe and facilitate
001-800-1-888-5888
banking transactions securely. ATM inspections are conducted at regular intervals Hong Kong / Singapore:
to check for anomalies such as card /PIN data skimming devices. We advise our
00-800-1-888-5888
customers via our branch personnel, posters, and announcements on email, Italy
website and social media to take precautions to protect their money, PIN, ATM/
011-800-1-888-5888
credit card. We provide tips on protecting their personal information and accounts USA
against fraud and misuse, and inform our customers of the procedures for reporting
fraud cases and captured/missing/stolen cards. In the event our customers are
victimized by phishing or other scams, our Customer Contact Center, ATM Center,
and IT Team ensure a quick turnaround time for resolution.
PROTECTION OF PRIVACY OF INFORMATION

We go to great lengths to provide a secure and confidential environment to
protect our customers’ data. We comply with all applicable privacy laws and
maintain customer data confidentiality except when a disclosure is obliged by
the Court or other authorities, or disclosure is made with the written consent of
the customer. Access to customer data is restricted to authorized personnel only.
The confidentiality of China Bank customer data also extends to our subsidiaries,
affiliates, and third party suppliers/contractors. E-MAIL
online@chinabank.ph
DISCLOSURE AND TRANSPARENCY MAIL

We provide the information our customers need to understand and to make Customer Contact Center
informed decisions about our products and services. The information are clear, China Bank Building, 8745 Paseo de Roxas
easy to understand, accurate, not misleading, and can easily be accessed. We use corner Villar Street, Makati City 1226
Philippines
a variety of channels and mediums to disseminate information, including printed
materials distributed or displayed at our branches or sent directly to customers; FAX
advertisements on TV, print, radio, and out-of-home; electronic communications in (02) 519-0143
our website and social media; and our Customer Contact Center. All BSP-mandated
consumer information are also prominently displayed in our branches. Moreover,
our branch personnel are trained to answer questions in a professional manner
about our products and services, explain the risks that certain products or services
carry, and advise customers on financial matters.
COMPLAINTS HANDLING
As part of our customer-driven efforts, we take complaints seriously and appreciate
the chance to clarify concerns or make things right when our customers are not
satisfied with any aspect of our products or services. Our customers may raise their
concerns or complaints in person, in writing (mail, e-mail, or fax) by telephone, or WEBSITE
online. At the heart of our complaint handling framework is our Customer Contact www.chinabank.ph
Center, supported by our Customer Contact Management System, which ensures
that complaints are documented, studied, and promptly resolved. We also respect
our customers’ right to escalate their complaint to an outside authority, like the BSP,
if they are not satisfied with our handling of their concerns. chinabankph
Corporate
Governance
China Bank’s adherence to the high standards of corporate governance has been recognized
by the Philippine Stock Exchange (PSE), the Institute of Corporate Directors (ICD), and most
recently, Corporate Governance Asia, the most authoritative quarterly magazine on corporate
governance in Asia. At the 2012, 2013, and 2014 PSE Bell Awards, China Bank was the only
bank among the top fi ve awardees in the publicly-listed companies (PLC) category and one
of only two awardees to have been in the top five thrice in a row. In 2014, China Bank was
named Asia’s Outstanding Company on Corporate Governance by Corporate Governance
Asia. Again, China Bank stood out as the only bank among the 23 awardees in this
category, five of which, including China Bank, are based in the Philippines. Our corporate
secretary, Atty. Corazon I. Morando, was likewise named by Corporate Governance Asia as
Asian Company Secretary of the Year. In the ACGS Country Reports and Assessments 2013-
2014 released in June 2014, China Bank ranked among the 50 highest-scoring PLCs in the
Philippines. Before PSE launched the Bell Awards, ICD had been the one to recognize PLCs
with exemplary corporate governance practices. China Bank was an ICD Gold Awardee in
2011 and 2012, and a Silver Awardee in 2010.
CORPORATE GOVERNANCE 33
G ood corporate governance is a pillar of China Bank’s

success and sustainability. Led by a Board fully committed to
Philippine Stock Exchange (PSE). The Manual is available in
China Bank’s Intranet system and our corporate website,
adopting corporate governance best practices, we conduct www.chinabank.ph.
our business ethically at all times, guided by the principles
of good governance: transparency, accountability, fairness, CODE OF ETHICS
and integrity. And as the business landscape changes Guided by our Core Values—Integrity, High
with the increased competition, tighter regulations, and Performance Standards, Commitment to Quality, Customer
technological innovations, we will continue to strengthen Service Focus, Concern for People, Efficiency and
our governance practices to make China Bank more resilient Resourcefulness / Initiative—China Bank’s business has
and to deliver greater customer and shareholder value. always been anchored on honest and ethical conduct and
compliance with applicable laws and regulations. These
CORPORATE GOVERNANCE POLICY core values are also the foundation of our Code of Ethics,
The Board of Directors, Management, employees, and approved by the Board of Directors in 1996. The Code,
shareholders believe that good corporate governance is a available in China Bank’s Intranet system and our website,
necessary component of what constitutes sound strategic provides clear guidelines on acceptable and unacceptable
business management and will therefore undertake greater behavior and business practices.
effort necessary to create more and continuing awareness Our Board has imposed a policy of full compliance with
within the organization. the Code of Ethics. Our Human Resources Division ensures
that every China Bank employee is aware of and upholds
VISION AND MISSION the Code. In order to promote compliance with the Code,
Our Vision and Mission, as stated on the first page of all new employees are given a copy of the Code of Ethics
this annual report, reflect what China Bank wants to be—a booklet and undergo the New Employees’ Orientation
catalyst of wealth creation for our customers. We commit Course (NEOC) wherein the Code is comprehensively
to the principles and best practices of governance in the discussed.
achievement of this goal. The Board reviews China Bank’s
Mission and Vision periodically and the corporate strategy COMPLIANCE WITH THE CORPORATE GOVERNANCE
annually to ensure the alignment of our direction and CODE
strategies with our operating environment and the needs of Our Board has imposed a policy of full compliance
our stakeholders. with the Code of Corporate Governance. Our Compliance
Office, headed by the Chief Compliance Officer (CCO), Atty.
CORPORATE GOVERNANCE MANUAL Marissa B. Espino, is responsible for building a compliance
China Bank has an extensive Corporate Governance culture and awareness in the Bank and ensuring that the
Manual that contains our corporate governance policies, system of implementing and monitoring compliance with
governance structure, principles, the specific and general the Code and the Bank’s Corporate Governance Manual are
duties and responsibilities of the Board, and the duties effective.
of the individual directors. It also reflects the updates on For the year 2014, the Bank has fully complied with
corporate governance in the Bangko Sentral ng Pilipinas all the material requirements of the Code of Corporate
(BSP) Circular No. 749, and the rules and regulations of Governance.
the Securities and Exchange Commission (SEC) and the
I. THE BOARD OF DIRECTORS AND BOARD COMPOSITION

THE CORPORATE GOVERNANCE The Board consists of individuals with integrity,
STRUCTURE qualifications, skills, and experience, providing an ideal
mixture of core competencies such as finance, legal,
The Board of Directors, the highest governing authority accounting, business management, marketing, and
at China Bank, is at the core of China Bank’s Corporate investment management for the effective Board oversight
Governance Structure (CGS). The Board represents and of China Bank’s business activities and affairs.
is accountable to our shareholders, guides our overall The present Board size of eleven Directors and one
philosophy and direction and sets the pace for our Adviser is commensurate with the size and complexity of
current operations and future developments. Governance our operations. Of the eleven, two are executive Directors
by the Board also includes monitoring Management’s and the rest are non-executive Directors, including the
performance, establishing standards of accountability, and three Independent Directors. An executive Director is a
setting our corporate values. Director who is also the head of a department or unit of
The CGS is reviewed annually and is updated as the Bank or performs any work related to our operations,
needed or in light of new regulations that may have an while non-executive Directors refer to those who are
impact on the role and responsibilities of the Board. In not part of the day-to-day management of banking
2014, we enhanced our CGS with the creation of a Related operations.
Party Transaction Committee.
ORGANIZATIONAL CHART
BOARD OF DIRECTORS
BOARD COMMITTEES
CORPORATE AUDIT COMPLIANCE CORPORATE RISK EXECUTIVE NOMINATIONS COMPENSATION TRUST RELATED PARTY
SECRETARY GOVERNANCE MANAGEMENT COMMITTEE OR REMUNERATION INVESTMENT TRANSACTION
INTERNAL AUDIT COMPLIANCE RISK OFFICE OF THE BOARD OF TRUSTEES TRUST

DIVISION OFFICE MANAGEMENT VICE CHAIRMAN OF CBC EMPLOYEES’ GROUP
GROUP RETIREMENT FUND
PRESIDENT
/ CEO
TECHNOLOGY
MANAGEMENT CREDIT
STEERING
COMMITTEE COMMITTEE
COMMITTEE
INFORMATION SECURITY
SECURITY OFFICE OFFICE
CHIEF OPERATING
OFFICER
INVESTOR AND CHIEF

CORPORATE FINANCE OFFICER
RELATIONS GROUP
FINANCIAL CAPITAL
RELATIONSHIP BUSINESS CORPORATE
MARKETS &
BANKING OPERATIONS SUPPORT
INVESTMENT
RETAIL BANKING LENDING

BUSINESS BUSINESS
China Bank has no executive Director who serves on The Nominations Committee reviews and evaluates the
more than two boards of listed companies outside of the qualifications of the candidates, the full Board confirms
China Bank Group. We have complied with the regulatory these candidates’ nomination, and the shareholders elect
requirements on Board composition. the directors during the Annual Stockholders’ Meeting.
Our Directors profiles are on pages 54-57. Upon their election, the members of the Board are
issued a copy of their general and specific duties and
INDEPENDENCE OF DIRECTORS responsibilities as prescribed by the Manual of Regulations
We maintain a strong element of independence on the for Banks (MORB), which they acknowledged to have
Board and conduct an annual review of the independence received and certified that they read and fully understood
of our Directors. We define an Independent Director as the same. Copies of the acknowledgement receipt and
holding no interests or relationships with China Bank, the certification are submitted to the BSP within the prescribed
controlling shareholders, or the management that would period. Moreover, the directors also individually submit a
influence their decisions or interfere with their exercise of Sworn Certification that they posses all the qualifications
independent judgment. as enumerated in the MORB. These certifications
The present Board has three Independent Directors are submitted to BSP after their election. Additional
(ID) and we have fully complied with all the applicable certifications are executed by independent directors to
rules on their nomination and election. As stated in our comply with the Securities Regulation Code and BSP rules
Corporate Governance Manual, the tenure of an ID should which are then submitted to the SEC.
not exceed a cumulative term of nine years: five consecutive Succession, replacement or vacancy in the Board is
years, with a two-year cooling off period, then another four addressed in the Bank’s By-Laws. Vacancies in the Board
years. While they are in the China Bank Board, they are not may be filled by appointment or election of the remaining
allowed to hold interlocking directorships in more than five directors. The Board may also use professional search
listed companies. firms or other external sources when searching for ideal
In the annual assessment of Independent Directors candidates for the Board. The stockholders may also fill
for the year ended December 31, 2014, the Board was such vacancy in a regular or special meeting called for this
satisfied that each of the three China Bank IDs continue purpose.
to be independent and free from any business or other
relationship, which could interfere with the exercise of SEPARATION OF THE ROLE OF THE CHAIRMAN AND
independent judgement. THE CHIEF EXECUTIVE OFFICER (“CEO”)
The position of Chairman of the Board and President
APPOINTMENT, RE-ELECTION, AND REPLACEMENT and CEO are held by two different people, and their roles
OF DIRECTORS are clearly distinct and separate.
The position of a China Bank Director is a position of Chairman Hans T. Sy, being a non-executive Director,
trust; thus, the directors are selected for their integrity, is not involved in the day-to-day operations of China Bank,
credibility, leadership, experience at policy-making levels, but is responsible for the leadership and effective running
and their ability to render independent judgment. We of the Board, including maintaining a relationship of trust
welcome diversity in our Board. with Board members, promoting a sound decision making
The shareholders nominate candidates by submitting process by encouraging critical discussion of dissenting
the nomination to any of the members of the Nomination views. He chairs Board meetings and arranges regular
Committee, the Corporate Governance Committee, or separate sessions with the non-executive Directors to
the Corporate Secretary on or before the prescribed date. review Management’s performance.
The CEO, who reports to the Board, is ultimately Director evaluation process, to advance the Board’s
responsible for managing China Bank’s day-to-day commitment to transparency by ensuring timely and
operations, as well as the development and execution of accurate corporate disclosures, and to facilitate orientation
the corporate and business strategies as established by the of new Directors and professional development of
Board of Directors. Directors, as required.
On August 31, 2014, Peter S. Dee retired as The Board, after its annual assessment of the fitness
China Bank president & CEO after serving in this capacity and suitability of the Corporate Secretary in accordance
for 29 years. He continues to serve as a member of the with China Bank’s Policy on Fit and Proper, has concluded
Board and the Executive Committee. He was succeeded by that it is satisfied with the performance and support
Ricardo R. Chua, our chief operating officer for 20 years, rendered by the Corporate Secretary.
as the new president & CEO, effective September 1, 2014.
BOARD MEETINGS AND SUPPLY OF INFORMATION
CORPORATE SECRETARY As stated in the Bank’s By-Laws, the Board meets
To enable our Directors to discharge their duties every 1st Wednesday of the month to review China Bank’s
efficiently and effectively, they have full and unrestricted financial performance, approve strategies, policies, and
access to Management and employees of the Bank and business plans, as well as to consider business and other
affiliated companies, external consultants and advisors, proposals which require the Board’s approval. Special
and the Corporate Secretary. The Corporate Secretary is Board meetings may also be called to deliberate and assess
a senior, strategic-level corporate officer who plays a vital corporate proposals or business issues that also require
role in the Bank’s corporate governance. Board approval.
Our Corporate Secretary is Atty. Corazon I. Morando. The Directors are expected to prepare for, attend,
She reports operationally to the Chairman and is also and participate in these meetings, and to act judiciously, in
accountable to the Board. Alongside her traditional role as good faith, and in the best interest of China Bank and our
the official record keeper responsible for the administrative shareholders.
side of board and committee meetings, Atty. Morando Under China Bank’s Corporate Governance Manual, a
is also a corporate governance gatekeeper responsible Director may participate by telephone-conferencing when
for overseeing sound board practices, as well as a board exigencies prevent him from attending a Board meeting in
liaison who works and deals fairly and objectively with the person.
board, management, stockholders and other stakeholders. The Board is provided with the information and
With a deep understanding of China Bank’s resources needed to effectively discharge its fiduciary duty.
operations and the principles of good corporate The Board is informed on an ongoing basis of the Bank’s
governance, Atty. Morando works closely with the performance, major business issues, new developments,
Directors to ensure the continuous improvement of and the impact of recent developments in the economic
the Board, as well as to uphold Board and annual and regulatory environment. The Directors are provided
stockholders’ meeting best practices, including releasing Board materials related to the agenda five business
meeting notices to shareholders well within the prescribed days in advance of meetings, by the Corporate
period, providing explanations to promote better Secretary to allow them to prepare for discussion of
understanding of the agenda, and summarizing the the items during the meeting. Members of Senior
questions asked and the answers given in the minutes, Management are invited to attend Board meetings
among other things. to provide the Board with detailed explanations and
It is her duty and within her authority to inform and clarifications on proposals tabled to enable the Board to
advise the Board of relevant regulatory and compliance make an informed decision. The meetings of the Board
trends and developments, to provide expert counsel on and its committees are recorded in minutes, and all
governance issues, to facilitate the annual Board and resolutions are documented.
In 2014, the China Bank Board had 15 meetings, training materials and operations manuals, and a
including the organizational meeting regularly held after the continuing education program for all our Directors, which
Annual Stockholders’ Meeting. includes briefings on relevant new laws, risk management
updates, and changes in accounting standards at Board/
NO. OF Board Committee meetings and seminars on Corporate
DIRECTOR MEETINGS % Governance and anti-money laundering conducted by SEC-
ATTENDED
accredited training providers. Directors are also encouraged
Chairman Hans T. Sy 14 93
Vice Chairman Gilbert U. Dee 14 93
to attend at least one training course/seminar on corporate
Member Ricardo R. Chua 12 80 directorship a year.
Member Peter S. Dee 14 93
Member Joaquin T. Dee 15 100
2014 Exclusive Corporate Governance Workshop
Member Herbert T. Sy 13 87 Anti-Money Laundering Seminar
Member Harley T. Sy 14 93
Member Jose T. Sio 12 80 2009 Anti-Money Laundering Seminar
Independent Dy Tiong 15 100 2002 Special Seminar on Corporate Governance for Bank
Independent Alberto S. Yao 14 93 Chairmen & CEOs
Independent Roberto F. Kuan 15 100
BOARD COMMITTEES
BOARD TRAINING To enhance the effectiveness of the Board in
Continuous education is important to keep our discharging its fiduciary duties and to complement it in the
Directors up-to-date with industry developments and execution of its responsibilities, the Board has established
to strengthen the Board’s competencies in dealing with nine Board-level committees and three Management-level
corporate governance, risk management, and strategic committees. Each committee has a charter and operates
issues faced by the banking industry in general, and China within its specific delegated authority and functions. The
Bank, in particular. committee charters, which are reviewed annually and
We have a full orientation program for newly-elected amended when necessary, are posted in our corporate
Directors, which includes branch visits and comprehensive website, www.chinabank.ph.
ICD Chairman Jesus Estanislao explaining the recent laws and regulations on disclosure and governance at the Corporate Governance Workshop on January 8, 2014.
The members of the different

committees are appointed by the
Board at the annual organizational
meeting, taking into account the
optimal mix of skills and experience
of the members.
Executive Committee (ExCom)

has the powers of the Board in
the management of the business
and affairs of China Bank between
meetings of the Board of Directors,
to the fullest extent permitted under
Philippine law.
The ExCom convened 37
times in 2014, including one joint
meeting with the Risk Management China Bank Chairman Hans Sy handing a plaque of appreciation to Atty. Arnold Frane of the AML
Council after the AML seminar for China Bank Directors and Senior Officers on August 6, 2014. With
Committee. them are the outgoing and incoming president & CEO, Peter Dee and Ricardo Chua, respectively.
DIRECTOR ATTENDANCE %
Hans T. Sy 34 92 Audit Committee primarily oversees all matters pertaining
Gilbert U. Dee 34 92 to audit, including the evaluation of the adequacy and
Peter S. Dee 31 84 effectiveness of the Bank’s internal control system. It
Joaquin T. Dee 35 95 likewise provides oversight on the activities of Management
Ricardo R. Chua 35 95
and the internal and external auditors.
The Audit Committee convened 12 times in 2014:
Risk Management Committee (RMC) is responsible
ten joint meetings with the Compliance and Corporate
for the oversight and development of all the Bank’s risk
Governance Committees and two joint meetings with the
management functions, including the evaluation of the
Compliance Committee.
risk management plan to ensure its continued relevance,
comprehensiveness, and effectiveness.
The RMC convened 13 times in 2014, including one
Alberto S. Yao 12 100
joint meeting with ExCom. Joaquin T. Dee 11 92
Dy Tiong 12 100
Joaquin T. Dee 13 100 Compliance Committee is tasked to ensure that
Hans T. Sy 12 92
Management is doing things in accordance with the
Gilbert U. Dee 12 92
Alberto S. Yao 13 100 prescribed rules, policies, procedures, guidelines and the
like, and that appropriate corrective actions are being taken
when necessary or required.
The Compliance Committee convened 13 times in Corporate Governance Committee (CorpGov) is

2014: ten joint meetings with the Audit and Corporate responsible for ensuring the Board’s effectiveness and
Governance Committees, two joint meetings with the Audit due observance of Corporate Governance principles and
Committee, and one joint meeting with the Nominations guidelines, and oversees the periodic evaluation of the
and Corporate Governance Committees. Board and its Committees, as well as of Management.
The Corporate Governance Committee convened
DIRECTOR ATTENDANCE % 18 times in 2014: ten joint meetings with the Audit and
Hans T. Sy 12 92 Compliance Committees, seven joint meetings with the
Joaquin T. Dee 12 92
Nominations Committee, and one joint meeting with the
Alberto S. Yao 12 92
Compliance and Nominations Committees.
Nominations Committee is responsible for reviewing and
evaluating the qualifications of all persons nominated to the
Roberto F. Kuan 14 78
Board and other appointments that require Board approval, Joaquin T. Dee 18 100
including promotions favorably endorsed by the Promotions Hans T. Sy 18 100
Review Committee. It also has the task of identifying Alberto S. Yao 17 94
the nominee/appointee qualities aligned with the Bank’s
strategic directions. Compensation or Remuneration Committee provides
Based on the Bank’s revised Nominations Committee oversight over the remuneration of senior management
Charter, it is tasked to undertake the process of identifying and other key personnel, ensuring that compensation is
the quality of the directors aligned with the Bank’s strategic consistent with the Bank’s culture, strategy and control
directions. Moreover, the Committee can be composed environment. Three out of the five members, including the
entirely of Independent Directors. The Charter is available in chairman, Roberto F. Kuan, are Independent Directors.
the Bank’s website, www.chinabank.ph. The Compensation or Remuneration Committee had
The Nominations Committee convened eight times in one meeting in 2014.
2014: seven joint meetings with the Corporate Governance
Committee and one joint meeting with the Compliance and DIRECTOR ATTENDANCE %
Corporate Governance Committees.
Hans T. Sy 1 100
Gilbert U. Dee 1 100
DIRECTOR ATTENDANCE % Dy Tiong 1 100
Dy Tiong 8 100 Alberto S. Yao 1 100
Hans T. Sy 8 100
Joaquin T. Dee 8 100
Alberto S. Yao 7 88
Trust Investment Committee (TIC) is responsible for Credit Committee (CreCom) reviews and approves all
the investment supervision over all the portfolios or funds credit applications within its credit approval authority.
under the management of the Trust Group. It acts upon It also reviews all credit applications exceeding its credit
all trust business for acceptance as well as approval of approval authority, and if found acceptable, endorses such
all investments for trust and agency accounts, unless this to the Executive Committee or the Board of Directors. The
function is specifically delegated by the Board to the head CreCom is composed of Gilbert U. Dee (chairman), Peter
of the Trust Group or other senior officers of the Bank, S. Dee*, Ricardo R. Chua, William C. Whang, Nancy D.
consistent with existing regulations. Yang, Ramon R. Zamora, Rosemarie C. Gan**, Ananias S.
The TIC convened ten times in 2014. Cornelio III***, and Melissa F. Corpus***.
* Until his retirement as President & CEO on August 31, 2014

DIRECTOR ATTENDANCE % ** Effective April 1, 2015
Roberto F. Kuan 4 100 *** Non-voting member
Jose T. Sio 8 80
Herbert T. Sy 6 100
Technology Steering Committee (TSC) oversees and
Harley T. Sy 9 90
Peter S. Dee 6 86 manages the IT resources of the Bank. Except for strategic
Ricardo R. Chua 3 100 initiatives and IT expenditures, all matters pertaining to
Roberto F. Kuan was replaced by Herbert T. Sy in June 2014, while Peter S. Dee was
replaced by Ricardo R. Chua effective October 2014.
IT resource management and performance measurement
are fully delegated to the Committee as provided for in its
Related Party Transaction Committee is responsible for Charter, subject to periodic reporting to the Board of IT
reviewing all related party transactions as defined in the project benefits and status, IT risks, system performance
existing policies of the Bank. The committee is composed and effectiveness of control measures implemented. The
of Alberto S. Yao (chairman), Dy Tiong, and Roberto F. TSC is composed of Ricardo R. Chua (chairman), Alexander
Kuan. C. Eschucha, William C. Whang, Ramon R. Zamora, and
Rosemarie C. Gan.
Board of Trustees of CBC Employees’ Retirement Fund
is responsible for the investment and disbursement of the BOARD & CEO EVALUATION
assets of CBC Employees’ Retirement Plan in accordance The Board has an annual performance evaluation
with SEC regulations and the best interests of the plan process to assess the effectiveness of the Board as a whole,
holders. The Board of Trustees is composed of Gilbert U. the Board Committees, and the individual Directors, by
Dee (chairman), Peter S. Dee, and Ricardo R. Chua. way of a Self-Assessment Questionnaire. The formal self-
rating system focuses on the level of compliance with
Management Committee (ManCom) formulates the leading corporate governance principles and practices.
Bank’s business plans and budget as directed by the As a process, each member of the Board is required to
Board and reports to the Board on the implementation of accomplish the various self-assessments and they are
corporate strategies designed to fulfill the Bank’s corporate to return the duly accomplished form to the Corporate
mission and business goals. At the operating level, it covers Governance (CG) Compliance Officer, who in turn
top management matters such as, but not limited to, summarizes the results for the validation of the Chief
environmental assessment, objectives setting, performance Compliance Officer. The final results are summarized, with
and budget review, asset/liability management, recommendations (as the case may be) and is reported to
organizational and human resource development, product the Board. There is also a specific self-assessment on the
development, and major operating policies. The ManCom performance of the President and CEO.
is chaired by Ricardo R. Chua. The members are listed on
pages 58-59.
Below is the rating system used: Management Group; a robust compliance function with
anti-money laundering and anti-insider trading policies;
RATING DESCRIPTION a comprehensive planning and budgeting process,
spearheaded by the Corporate Planning Division, that
Poor - Leading practice or principle is not adopted in
0 delivers detailed annual financial forecasts and targets
the company’s Manual of Corporate Governance
Needs Improvement - Leading practice or principle is for Board approval; and an internal audit function
1 adopted in the Manual but compliance has not yet independently exercised by the Audit Division.
been made
Based on the continuing review and monitoring by
Fair - Leading practice or principle is adopted in the
the Audit Committee of the adequacy and effectiveness
2-3 Manual and compliance has been made but with
major deviation(s) or incompleteness of the internal system of the Bank, and its evaluation of
Good - Leading practice or principle is adopted in management’s activities in managing various risks material
4 the Manual and compliance has been made but to the operations of the Bank, the Committee affirms that
with minor deviation(s) or incompleteness
the Bank’s internal control and risk management systems
Excellent - Leading practice or principle is adopted in
are adequate and functioning effectively.
5 the Manual and full compliance with the same has
been made
INTERNAL AUDIT
We also adopted the SEC-prescribed performance Internal audit is a vital part of China Bank’s internal
assessment for the Audit Committee in 2012. In accordance control structure. The Internal Audit function covers the
with SEC Memorandum Circular No. 4, Series of 2012, the independent and objective evaluation of the Bank’s risk
results are validated by the CG Compliance Officer and management, control, and governance processes. This is
form part of the record of the Bank which may be examined handled by the Audit Division, headed by the Chief Audit
by the Commission from time to time. The results are Executive (CAE), Vice President Marilyn G. Yuchenkang.
summarized and reported also to the Board. The CAE has dual reporting lines in order to maintain
Based on the results of the 2014 evaluation, there organizational independence—functionally to the Audit
are no significant deviations and in general the Bank has Committee and administratively to the president and CEO.
complied with the provisions and requirements of the The appointment and removal of the CAE should be duly
Code of Corporate Governance, including the fitness and approved by the Audit Committee. The Audit Division
suitability of each of the Directors in accordance with the performs its mandated tasks based on the Board-approved
Group’s Policy on Fit and Proper. Internal Audit Charter. Its authority cuts across all functions,
units, processes, records, and personnel in relation to the
conduct of its role. A risk-based audit approach is used for
II. INTERNAL CONTROL AND
the preparation of the Annual Audit Plan.
RISK MANAGEMENT In line with the Audit Division’s thrust to improve its
existing process in gathering and analyzing audit data in
The Board is responsible for the establishment and review
order to achieve engagement’s objectives, it has acquired
of China Bank’s system of internal control, while the
in 2014 data analytics solution that will improve the audit
day-to-day responsibility for internal control rests with
approach by moving from traditional auditing to continuous
Management. All of our employees are involved to a
auditing, which provides for a more frequent control and
certain degree in our internal control process.
risk assessments; increase audit coverage by providing
The components of our internal control system
capability to cover the whole population for testing; and
includes a well-defined management structure with clear
improve audit efficiency and quality by allowing consistent
authorities, responsibilities, and operating procedures;
and repeatable test procedures that are not dependent on
an enterprise risk management function supported
the available manpower resources thus minimize impact
by the Risk Management Committee and the Risk
of staff turnover to audit coverage. Related training was
conducted by the service provider to equip the designated stockholders’ meeting; and in relation to the due diligence
auditors with the necessary skills and competencies in preparation of the financial statements for the Bank’s
using this analytics tool. stock rights offering. In the past years, we also engaged
their services for the conduct of an independent security
EXTERNAL AUDIT assessment of the Bank’s systems, independent validation
The Audit Committee is responsible for the of the Bank’s risk measurement and pricing models, and
appointment, re-appointment, and removal of an external implementation of Internal Capital Adequacy Assessment
auditor to ensure its independence from the internal Process (ICAAP), and strengthening of risk management
auditors. SGV & Co./Ernst & Young (SGV) has been China and audit processes through project engagements which
Bank’s external auditor for over 20 years, with the partners include ICAAP for Internal Audit, ICAAP Phase 2, Risk
rotated every five years, as required by law. Vicky Lee Salas Model Validation and ICRRS.
was assigned in 2011 as SGV’s partner-in-charge for China SGV is again recommended for appointment at the
Bank. 2015 annual stockholders meeting.
SGV plays a crucial role in ensuring that our financial
statements factually represent our accounting records and COMPLIANCE SYSTEM
are treated and presented in accordance with Philippine Our compliance system fosters a culture of bank-
Financial Reporting Standards (PFRS). Throughout the wide compliance to protect the Bank’s reputation and our
years that SGV has been auditing the Bank, it has not stakeholders’ interests. The Compliance Office ensures that
found any significant exceptions, such as cases of fraud or employees at all levels are aware of and comply with all
dishonesty, and any other matters that could potentially applicable laws, rules, and regulations, by cascading the
result in material losses to the Bank and our stakeholders. Bank’s Compliance Plan and disseminating all regulatory
SGV representatives are present at the Bank’s annual agencies’ issuances, advisories, and other regulatory
stockholders meeting to respond to matters concerning matters. The Compliance Office also acts as liaison for
their audit of the Bank. the Board and management on regulatory compliance
matters with the regulatory agencies; and provides
FISCAL AUDIT FEES AND advisory services, including reviewing proposed China Bank
YEAR OTHER RELATED FEES products and services.
2014 P2,046,000.00 The Chief Compliance Officer (CCO) functionally
2013 P1,860,000.00 reports to the Compliance Committee and the Corporate
Governance Committee, and administratively to the
The above audit fees are inclusive of other assurance president and CEO.
and related services by the external auditor that are The Compliance Office updates our Compliance
reasonably related to the performance of the audit or Manual annually. The latest updating includes its alignment
review of the Bank’s financial statements. The matter of with BSP Circular No. 747 which calls for the compliance
the 2014 audit fees was taken up and approved by the system to focus on the mitigation of business risk. The
Audit Committee at its regular meeting on February 18, Compliance Office also regularly conducts trainings on
2015. corporate governance, bank fraud, anti-money laundering,
Apart from the matter of audit fees, the Board/ and other relevant laws and regulations; and continues
Audit/Executive/Risk Management Committee likewise to strengthen our compliance program to elevate China
discussed/approved/authorized to engage the services Bank’s CAMELS Rating (Capital Adequacy, Assets Quality,
of SGV in non-audit work in 2014, particularly, for the Management Efficiency, Earnings Capacity, Liquidity and
independent validation of votes in the May 8, 2014 annual Sensitivity to Market Risk) to the next level.
RISK MANAGEMENT MARKET AND LIQUIDITY RISK

We recognize that the business of banking necessarily The objective of our market risk policies is to obtain
entails risk, and that proper risk mitigation, not outright the best balance of risk and return while meeting our
risk avoidance, is the key to long-term success. Our risk stakeholders’ requirements. Meanwhile, our liquidity risk
management principle centers on determining how much policies center on maintaining adequate liquidity at all times
risk we are willing to bear for a given return, deciding if the to be in a position to meet all obligations as they fall due.
risks represent viable opportunities, and finding intelligent RMG continued to implement its roadmap in 2014 including
approaches to managing risks. Our corporate governance enhancements and projects in support of these objectives.
structure keeps pace with the changing risks that China Budget and capital considerations (Pillar II guidelines)
Bank faces and will be facing in the coming years with are now effectively embedded into risk taking activities via
a dynamic risk management program that calls for the the Value- at-Risk (VaR) limits. The annual VaR Limits review
continuing reassessment of risks and controls and the timely incorporates the impact of the 1-day and 10-day VaR on
reporting of these risks to the Board. Capital Adequacy Ratio (CAR) as a basis for establishing
As mandated under existing regulations, the Board limits, in addition to the annual trading budget and the
is responsible for the approval and oversight of the Bank’s risk tolerance. Aside from using VaR as a risk
implementation of risk management policies. The Board metric, market risk is adequately managed through a risk
has delegated this function to the Risk Management management framework comprising of limits, management,
Committee (RMC) which includes among others, the triggers, monitoring, and reporting procedures.
development of various risk strategies and principles, control China Bank’s application for Type 2 Derivatives license
guidelines policies and procedures, implementation of was approved by the BSP in 2014. The guidelines for trading
risk measurement tools, monitoring of key risk indicators, financial derivatives, Product Programs and models for
and the imposition and monitoring of risk limits. The measuring and monitoring market risk exposures on these
RMC regularly reviews China Bank’s risk profile and the derivative products are in place. Historical Simulation VaR
effectiveness of risk management systems. Moreover, has also been applied for financial derivatives instruments,
internal auditors test and evaluate our risk management including Interest Rate Swaps and Foreign Exchange Swaps
program to determine effectiveness and communicate the and Forwards. Only the standard products, such as bonds,
results to the Board and the Audit Committee. remain under Parametric VaR.
The Risk Management Group (RMG), headed by For interest rate risk, the Earnings-at-Risk (EaR)
our Chief Risk Officer (CRO), First Vice President Ananias estimates using actual interest rate volatilities and non-
S. Cornelio III, is responsible for executing the risk parallel yield curve shifts have been included in the regular
management function and the guidelines set by the RMC, reporting to the RMC to supplement the Bank’s EaR
including the identification and evaluation on a continuous analysis. RMG is also exploring other systems capable of
basis of all significant risks to the business, and challenging generating other metrics, such as the measurement of
business lines on all aspects of risks arising from the Bank’s Balance Sheet VaR, to further enhance its analysis of the
activities. Bank’s accrual portfolio.
In 2014, RMG continued to strengthen China Bank’s Aside from the Maximum Cumulative Outflow (MCO)
risk management framework to effectively assess, manage, model used for liquidity risk monitoring, RMG formed
and monitor risks across a broad range of activities. a team to spearhead the Bank’s adoption of Basel III
Major initiatives were taken to increase the technical International Framework for Liquidity Risk Measurement,
capacity of the group in credit risk model development Standards and Monitoring in 2014. The team includes
and validation. Foundation for the Bank’s adoption of the representatives from Treasury and Accounting which are
Basel III framework on liquidity risk management has been responsible for managing the Bank’s liquidity and financial
prepared. Core system testing on disaster preparedness was regulatory reporting. RMG provides Management with
also completed.
regular estimates of the Liquidity Coverage Ratio (LCR) subsequent stage of the engagement will cover the
based on its interpretation of the Basel III framework and recalibration of the ICRRS. In line with this initiative, RMG
using available data pending guidelines from the local prepared an enterprise-wide roadmap for the development
regulator. and alignment of all the credit scoring methods being
The measurement of balance sheet interest rate used by China Bank and our subsidiary banks. Among the
and liquidity risk exposures are automated through the objectives of having a unified credit risk rating platform
Asset and Liability Management (ALM) system that was is to have a consistent methodology in evaluating a
implemented in 2013. This important information on borrower’s credit-worthiness across the organization
the Bank’s exposures generates insights that lead to the covering the different segments such as commercial,
formulation of timely and effective interest rate strategies consumer, financial institutions and sovereign credits.
and funding plans. We also strengthened the management of large
In 2014, the internal risk measurement models – VaR, exposures and concentration risk with the implementation
EaR and MCO were independently validated by the Bank’s of BSP Circular No. 839 which requires the stress testing
Internal Audit Division (IAD). In the prior year, the Bank of the Bank’s exposures to real estate and other real estate
engaged the services of an external consultant for the properties. RMG likewise quantified the impact to the
independent validation of these risk measurement models. capital ratios of the Bank based on the guidelines provided
Included in the engagement was the capacity building of in the BSP exposure draft on Leverage Ratio Framework.
the IAD to perform model validations. In addition, aggregate credit exposures are now provided
On stress testing, RMG continued using an Integrated in the Management and Board-level reports to include
Stress Testing framework (IST) for the January 2015 relevant information pertaining to the lending activities of
ICAAP submission in assessing the ICAAP adjusted capital the subsidiary banks.
charge, in addition to the various silo stress tests already The Credit Review and Control Department (CRCD),
in place such as Volatility, Uniform, and Reverse Stress the credit examination arm of RMG, completed in 2014
Tests. Instead of the previous Internal Models Approach the review of eight lending units from Institutional
that only determines the capital charge of individual risks Banking Group and Retail Banking Business group. These
on a silo basis, the IST framework allows us to evaluate lending units accounted for 41% of the Bank’s total loan
China Bank’s overall vulnerabilities on specific events or portfolio as of September 30, 2014. The standard credit
crisis and gauge the Bank’s ability to withstand stress examination covers the assessment of loan portfolio quality
events. The IST is based on the impact of adverse market and adherence to existing credit policies and procedures.
conditions that could potentially result to losses and asset Areas requiring immediate attention were also covered
value deterioration of the Bank’s trading and investment during the year such as the impairment methodology
portfolios. of the Consumer Banking Group and Sales Contract
Receivables.
CREDIT RISK For the subsequent year, major activities will focus on
Our policies for managing credit risk are determined the initial stage of implementation of the RMG credit risk
at the business level with specific procedures for different rating model development roadmap and efforts to comply
risk environments and business goals. with the BSP Circular No. 855 (Guidelines on Sound Credit
For 2014, RMG dedicated a significant amount of Risk Management Practices; Amendment to the Manual of
time and effort in assessing the predictive capability of Regulations for Banks and Non-Bank Financial Institutions).
our Internal Credit Risk Rating System (ICRRS) specific Specific action plans are to be taken up with Senior
to corporate accounts. The Bank’s effort was supported Management and the Board of Directors with the objective
by Moody’s Analytics which conducted the third-party of meeting the 2-year timeline set by the regulators.
qualitative and quantitative validation of the ICRRS. The
OPERATIONAL AND IT RISK Business, and Investment Management Activities. The

We have a framework of policies, procedures, and circular mandates Trust entities to “develop and implement
tools to ensure that China Bank’s operational and IT a formal, comprehensive, and effective risk management
risks are managed in a timely and efficient manner. RMG program that outlines, among other things, the risk
continued to effectively assess, monitor, control, and report management processes that effectively identify, measure,
such risks, implementing new projects and improvements monitor and control risks affecting the clients and the Trust
in 2014, with emphasis on improving the Bank’s disaster Entity.” In line with this, RMG continued to strengthen
preparedness. China Bank’s risk management practices on Trust by
In line with our Business Continuity Plan (BCP), enhancing the policies, processes, and procedures for
China Bank’s first fully equipped Business Recovery Center market, liquidity, credit, operational, and compliance risks
(BRC) was opened on July 26, 2013 at the China Bank specific to the Trust Group. In 2014, Legal, Strategic, and
Building in Binondo. While the BRC addresses the business Reputational Risks were also incorporated in the Trust Risk
component of the BCP, the Disaster Recovery Plan (DRP) Management Guidelines.
addresses the technology component. The data recovery
equipment are available in a separate facility which is III. GOVERNANCE AND OPERATIONAL
the Disaster Recovery Center (DRC) in Alabang. Both
POLICIES
facilities ensure that China Bank is adequately prepared
for disaster recovery and business resumption. The BRC
Guided by the policies in China Bank’s By-Laws, Corporate
can accommodate critical units of the Bank to recover
Governance Manual, Compliance Manual, and Code of
from an unexpected business interruption. Equipped with
Ethics, the Board and Senior Management lead, direct,
workspaces, computer and communication systems, the
inspire, and control the governance and business conduct
facility can support parallel operations 24x7.
of China Bank, ensuring that we are not just consistent
Towards the end of 2014, RMG facilitated a
with the rule of law, but that China Bank is run soundly
comprehensive testing of the Head Office Integrated BCP.
and prudently, in a manner that fits the best interests of our
Highlighted in the activity are the network connectivity
stakeholders.
and recovery point testing and full cycle end-to-end data
processing of participating units. Efforts are continually
ANTI-MONEY LAUNDERING
being exerted to align the Recovery Time Objective (RTO)
We are committed to complying with the provisions
under the DRP with the requirements of the critical business
of the Anti-Money Laundering (AML) law. The Compliance
and operating units using the Business Impact Assessment
Office develops, implements, and monitors programs to
(BIA). Alongside the Bank’s IT Audit and Information Security
prevent China Bank from being used for money laundering.
Office, the disaster preparedness was thoroughly assessed,
The Compliance Office conducts regular seminars on the
covering both infrastructure and procedural matters.
Base60 Automated AML System, the basics of the Anti-
Standards set under existing regulations and industry best
Money Laundering Act (AMLA), and current trends to
practices were used to benchmark the Bank’s ability to
ensure that China Bank employees have sufficient and up-
respond to pre-determined events.
to-date knowledge of AML law and regulations, as well as
the risks and opportunities for money laundering and the
TRUST RISK
financing of terrorism. The revised Money Laundering and
On August 17, 2012, BSP came out with Circular No.
Terrorist Financing Prevention Program (MLPP) Operations
766, Guidelines in Strengthening Corporate Governance
Manual is posted in our intranet system for easy reference.
and Risk Management Practices on Trust, Other Fiduciary
REMUNERATION Reports/disclosures may be sent to:

In accordance with the Bank’s amended By-laws,
China Bank Directors are entitled to a per diem of P500.00 Mailing Address:
for attendance at each Board/Board Committee meeting CHIEF COMPLIANCE OFFICER
and to 4% of the Bank’s net earnings. Executive Directors China Banking Corporation
are appointed under standard employment terms, which P. O. Box 2182, Makati Central Post Office
include provisions for basic salary and performance bonus, 1226 Makati City, Philippines
depending on their performance, banking experience,
employment status, position, and rank in the Bank. Non- Mobile number: 0947-9960573
executive Directors, on the other hand, do not receive any E-mail address: whistle_chib@yahoo.com
performance-related compensation.
For employees, the remuneration policy is to maintain A disclosure form is also available at
salary range rates which compare favorably with those www.chinabank.ph
paid by the banking industry for the same job function,
to recognize the relative importance of each job position, CONFLICT OF INTEREST
and to reward meritorious performance. The Employees’ Conflict between the interest of the Bank and the
Remuneration Framework, designed to strike a balance interest of the employees should be avoided at all times.
between linking rewards to short-term and long-term In cases of conflict, the interest of the Bank should prevail.
objectives and maintaining competitiveness in the market, Our employees are not allowed to have direct or indirect
comprises fixed salary, bonuses, benefits and long-term financial interests that conflict or appear to conflict with
incentives. The details are on page 24. their duties and responsibilities as employees of the Bank;
to engage in other work outside of the Bank without the
WHISTLE-BLOWING Bank’s written permission; and to have work competitive
We have a whistle-blowing policy, wherein employees, with the Bank.
customers, shareholders, and third party service providers
are encouraged to report questionable activity, unethical RESTRICTION IN DEALINGS ON BANK SECURITIES
conduct, fraud or any other malpractice by mail, phone We adopted a policy on securities transactions
or e-mail, without fear of reprisal or retaliation because to reinforce existing laws against insider trading. Our
the identity of the whistleblower is kept confidential. policy on insider trading prohibits directors, officers, and
Disclosures are directed to Chief Compliance Officer employees who are considered to have knowledge of
(CCO), who is responsible for determining the sufficiency material facts or changes in the affairs of China Bank
and validity of the report. If determined sufficient in form which have not yet been publicly disclosed, including
and substance, the CCO shall refer the disclosure to the any information likely to affect the share price of the
Audit Division and/or Human Resources Division (HRD) for Bank’s stock, to directly or indirectly engage in financial
further investigation. If the CCO finds the report baseless, transactions as a result of, or primarily relying upon,
she is required to respond to the whistleblower of its “insider information.” Also covered are consultants and
status within 24 hours from receipt thereof. Meritorious advisers and all other employees who are made aware of
disclosure, as may be determined by the CCO, should undisclosed material information.
be given recognition and may be entitled to an award The dealings of the directors in the Bank’s shares are
as deemed necessary by the HRD or the Investigation required to be disclosed within three business days after
Committee. the transaction.

SIGNIFICANT RELATED PARTY TRANSACTIONS AS OF DECEMBER 2014
NAME OF COUNTERPARTY TYPE OF TRANSACTION* AMOUNT/CONTRACT PRICE
St. Luke’s Medical Center, Inc. Renewal of import/domestic L/C line and increase USD2.0 Mn
St. Luke’s Medical Center (Global City), Inc. (Related Party) thereof
JJACCIS Development Corp. (Related Party) Renewal and increase in the omnibus line P500.0 Mn
Suntree Holdings Corp. (Related Party)
St. Luke’s Medical Center, Inc. Review of Corporate buyers limit P50.0 Mn
St. Luke’s Medical Center (Global City), Inc. (Related Party)
SM Investments Corporation and its subsidiaries: (Related Parties) Review of Corporate buyers limit P1.0 Bn
SM Retail Inc. & its subsidiaries (Supervalue, Inc.,
Sanford Marketing Corp., Super Shopping Market, Inc., SM Mart, Inc.)
SM Prime, Inc. & its subsidiaries (SM Land, Inc., SM Development Corp.,
SM Synergy Property Holdings, Corp., SM Residences, Inc.)
BDO Unibank & its subsidiaries
SM Hotels & Conventions Corp. & its subsidiaries
Kultura Filipino
Watson’s Personal Care Stores Philippines, Inc.
Quantum Amusement Corp. (Related Party) Omnibus line (30 days extension) P72.950 Mn
China Bank Savings, Inc. (Subsidiary) Treasury Interbank limit P627.192 Mn
USD0.200 Mn
Renewal of Import Letter of Credit USD10.00 Mn
Planters Development Bank (Subsidiary) Treasury Interbank limits P1,029.06 Mn
Omnibus Line P100.0 Mn
Underwriting for the upcoming 7-year and 10-year P10.0 Bn
SM Investments Corporation (Stockholder)
retail bonds
Manufacturer’s Life Insurance Co. (Phil.), Inc. Renewal of pre-settlement risk limit Pre-settlement Risk Line
Manulife ChinaBank Life Assurance Corporation (Affiliate) P200.0 Mn
USD400,000.00
Henry Sy, Sr. (Stockholder) Renewal of loan line P300.0 Mn
SM Investments Corporation (Stockholder) Renewal / reinstatement of loan line P15.5 Bn
Multi Realty Development Corp. (Related Party)
Sybase Equity Investments Corp. (Related Party)
Sysmart Corporation (Related Party) Renewal of loan P5.0 Bn
SM Prime Holdings, Inc. Renewal of lines Loan Line P1.0 Bn
Costa Del Hamilo, Inc. BP line P100.0 Mn
SM Hotels and Conventions Corp. (Related Parties)
Summerhills Home Development Corp. (Related Party) Renewal of loan line P500.0 Mn
SM Development Corporation (Related Party) Renewal of loan line P200.0 Mn
Grant of bills purchase line P50.0 Mn
SM Development Corporation, and the following: Contract to sell purchase facility P9.50 Bn
SM Synergy Properties Holdings Corp.

Twenty Two Forty One Properties, Inc.
Costa Del Hamilo, Inc.
Intercontinental Development Corp. (Related Parties)
SM Prime Holdings, Inc. (Related Party) Underwriting for the upcoming 5.5-year, 7-year, and P15.0 Bn
10-year retail bonds
Super Industrial Corporation (Related Party) Loan Transaction P50.0 Mn
Manuel Bautista Sy Loan line P50.0 Mn
Union Motor Corporation (Related Party) Renewal of omnibus line P150.0 Mn
BDO Unibank, Inc. (Related Party) Interbank Term limits USD4,579.510 Mn
Rizal Commercial Banking Corporation (Related Party) Interbank Term limits USD2,853.860 Mn
BDO Private Bank (Related Party) Pre-settlement risk limits – Peso IRS USD3.0 Mn
Pre-settlement risk limits – USD IRS USD3.0 Mn
Pre-settlement risk limits – Cross Currency USD3.0 Mn
Settlement limit – Peso IRS USD4.0 Mn
Settlement limit – USD IRS USD4.0 Mn
*These shall include on-balance sheet and off-balance sheet credit exposures and claims, as well as, dealings such as service contracts, asset purchases and sales, construction
contracts, lease agreements, derivative transactions and borrowings, among others.
RELATED PARTY TRANSACTIONS have the necessary experience, capability, and financial
We recognize that related party transactions may give viability to undertake the work safely, economically,
rise to a conflict of interest. Our Board ensures that such and technically correct, in an environmentally sound
transactions are made substantially on fair terms or at manner, and in accordance with the contract, schedule,
an arm’s length basis. The Audit Committee and Related and applicable laws and regulations. We are committed
Party Transaction Committee, in particular, thoroughly to fair marketplace practices, selecting suppliers and
review and verify all related party transactions as having contractors through an open and non-discriminatory
been entered into in the best interest of the Bank, in process, based on criteria that ensure a thorough and
the ordinary course of business, and on substantially the competitive selection process: quality, price, service,
same terms as those prevailing at the time for comparable and overall value to China Bank. We follow standards
transactions with other parties. of objectivity, impartiality, and equality of opportunity,
The table on page 47 shows the Bank’s significant preventing any favoritism or interference from conflicts of
(P50M and above) related party transactions as of interest in the selection of suppliers and contractors. We
December 2014. Full disclosures for these transactions have a supplier/contractor accreditation process which is
were made through reports with the appropriate the preliminary step to pre-qualification at China Bank.
regulatory agency. Suppliers and contractors invited to bid are evaluated
accordingly prior to contract award. They are also
EDUCATION AND TRAININGS evaluated on the basis of actual performance as compared
We are committed to continually strengthen China to promised delivery dates, quality of work / goods, and
Bank’s compliance culture through education and training. adherence to agreed specifications and purchase order
The Compliance Office regularly conducts briefings to prices.
Compliance Coordinators in branches and head office
to raise the level of awareness and understanding of the DISCLOSURE AND TRANSPARENCY
principles, concepts, and elements of good corporate We are committed to a high standard of disclosure
governance and compliance. The Compliance Coordinators and transparency to facilitate understanding of the Bank’s
are required to cascade their learning to their respective true financial condition and the quality of our corporate
areas. All new employees of the Bank undergo a governance. All material information about China Bank is
Basic orientation on Compliance System, Anti-Money adequately and punctually disclosed, in accordance with
Laundering (AML), Whistle-blowing, and Corporate SEC and PSE’s disclosure policy. In addition to compliance
Governance wherein the compliance concept is introduced with the reportorial requirements like publishing our
to them. The Compliance Office also conducts lectures in quarterly financial statements in leading newspapers and
the Officers Development Program (ODP) and Integrated producing a comprehensive annual report for the Annual
Supervisory Development Program (ISDP). Stockholders’ Meeting, we promptly disclose major and
market-sensitive information like dividend declarations,
SUPPLIER/CONTRACTOR SELECTION joint ventures and acquisitions, sale and disposition of
We maintain high legal, ethical, and professional significant assets, as well as financial and non-financial
standards in the management of the Bank’s resources. information that may affect the investment decision
We ensure that the goods or services procured are fit for of the investing public, in the form of press releases in
the purpose and provide the Bank with the best value newspapers and reports in our internal publications.
available; that risks to personnel, company assets, and We also electronically file our disclosures through the
the environment arising from the contracting or supply of Electronic Disclosure Generation Technology (Edge) of PSE
materials, equipment, and services are reduced to a level which are then posted on the PSE website. Our corporate
which is as low and as reasonably practicable as possible; website is likewise regularly updated to include the latest
and that we deal with suppliers and contractors that news and current information about the Bank.
IV. INFORMATION FOR STOCKHOLDERS
DATE OF FOUNDATION
China Bank was incorporated on July 20, 1920 and opened for business on August 16, 1920. The Bank is registered
with the Securities and Exchange Commission under SEC registration number 443. China Bank’s amended By-laws may be
downloaded from our website, www.chinabank.ph, or requested from the Office of the Corporate Secretary:
Atty. Corazon I. Morando

Vice President and Corporate Secretary
11/F China Bank Building
Tel. Nos.: (+632) 885-5131, 885-5132
Fax No.: (+632) 885-5135
Email: ocsstocks@chinabank.ph
AUTHORIZED AND ISSUED CAPITAL

Authorized Capital: P25 Billion divided into 2.5 Billion shares with a par value of P10.00 per share
Issued Shares: 1,716,414,317 common shares
SUMMARY OF FILIPINO AND NON-FILIPINO HOLDINGS AS OF FEBRUARY 28, 2015

NATIONALITY NUMBER OF STOCKHOLDERS NUMBER OF SHARES PERCENTAGE
Filipino 1,894 1,275,245,837 74.297%
Non-Filipino (PCD) 1 432,933,265 25.223%
Chinese 50 3,150,029 0.184%
American 22 4,010,168 0.234%
British 2 100,387 0.006%
Canadian 6 534,427 0.031%
Dutch 1 49,374 0.003%
Spanish 1 84 0.000%
Taiwanese 2 390,746 0.023%
TOTAL 1,979 1,716,414,317 100.00%
RECORD AND BENEFICIAL OWNERS HOLDING 5% OR MORE OF VOTING SECURITIES AS OF FEBRUARY 28, 2015
NAME, ADDRESS OF RECORD NAME OF BENEFICIAL
NO. OF
TITLE OF OWNER & RELATIONSHIP OWNER & RELATIONSHIP CITIZENSHIP PERCENTAGE
SHARES HELD
CLASS WITH ISSUER WITH RECORD OWNER
PCD Nominee Corporation*
37th Floor Tower I
The Enterprise Center
Common Various stockholders/clients Non-Filipino 432,933,265 25.22%
6766 Ayala Ave. corner
Paseo de Roxas, Makati City
Stockholder
SM Investments Corporation
Sy Family
10th Floor L.V. Locsin Bldg.
Common PCD Nominee Corporation Filipino 295,267,293 17.20%
6752 Ayala Avenue, Makati City
Stockholders
Stockholder
Sysmart Corporation
Henry Sy, Sr. and Family
10th Floor L.V. Locsin Bldg.
Common Sycamore Pacific Corporation Filipino 254,290,183 14.82%
6752 Ayala Avenue, Makati City
Stockholders
Stockholder
PCD Nominee Corporation*
37th Floor Tower I
The Enterprise Center
Common Various stockholders/clients Filipino 202,673,787 11.81%
6766 Ayala Ave. corner
Paseo de Roxas, Makati City
Stockholder
* Based on the list provided by the Philippine Depository & Trust Corporation to the Bank’s transfer agent, Stock Transfer Service, Inc., as of February 28, 2015, The Hong Kong and
Shanghai Banking Corporation Limited (253,636,971 shares or 14.777%) holds 5% or more of the Bank’s securities. The beneficial owners, such as the clients of PCD Nominee
Corporation, have the power to decide how their shares are to be voted.
SECURITY OWNERSHIP OF DIRECTORS AND MANAGEMENT AS OF FEBRUARY 28, 2015

AMOUNT & NATURE
TITLE OF
NAME POSITION OF BENEFICIAL / CITIZENSHIP PERCENT
CLASS
RECORD OWNERSHIP
(a) Directors
Common Hans T. Sy Chairman of the Board2,152,408 Filipino 0.125%
Common Gilbert U. Dee Vice Chairman 9,132,984 Filipino 0.532%
Common Ricardo R. Chua President & CEO 93,155 Filipino 0.005%
Common Peter S. Dee Director 1,116,967 Filipino 0.065%
Common Joaquin T. Dee Director 33,014,215 Filipino 1.923%
Common Dy Tiong Independent Director 158,182 Filipino 0.009%
Common Herbert T. Sy Director 326,428 Filipino 0.019%
Common Harley T. Sy Director 74,403 Filipino 0.004%
Common Alberto S. Yao Independent Director 5,674 Filipino 0.000%
Common Roberto F. Kuan Independent Director 21,570 Filipino 0.001%
Common Jose T. Sio Director 2,248 Filipino 0.000%
Total 46,098,234 2.686%
(b) Executive Officers (in addition to Messrs. Gilbert U. Dee and Ricardo R. Chua)
Common Nancy D. Yang Senior Vice President 1,940,602 Filipino 0.113%
Common Rene J. Sarmiento Senior Vice President 16,942 Filipino 0.001%
Common Rosemarie C. Gan Senior Vice President 83,131 Filipino 0.005%
Common Gerard T. Dee First Vice President 5,026 Filipino 0.000%
Total 2,045,701 0.119%
GRAND TOTAL 48,143,935 2.805%
TRADING IN COMPANY SHARES BY BANK DIRECTORS
SHAREHOLDINGS AS NUMBER OF SHARES NUMBER OF SHARES SHAREHOLDINGS AS OF

DIRECTOR
OF JANUARY 1, 2014 DISPOSED ACQUIRED* DECEMBER 31, 2014
Hans T. Sy 1,700,479 0 451,929 2,152,408

Gilbert U. Dee 7,596,545 0 1,536,439 9,132,984
Ricardo R. Chua 77,484 0 15,671 93,155
Peter S. Dee 929,060 0 187,907 1,116,967
Joaquin T. Dee 31,379,887 3,919,641 5,553,969 33,014,215
Dy Tiong 131,571 0 26,611 158,182
Herbert T. Sy 271,513 0 54,915 326,428
Harley T. Sy 61,886 0 12,517 74,403
Alberto S. Yao 4,719 0 955 5,674
Roberto F. Kuan 17,941 0 3,629 21,570
Jose T. Sio 1,870 0 378 2,248
* As a result of subscription to stock rights offering and issuance of 8% stock dividend
MARKET INFORMATION
Actual Prices:
2014 HIGH LOW CLOSE
Jan – Mar 62.00 57.25 58.45
Apr – Jun 63.00 54.00 55.10
Jul – Sept 56.50 50.00 50.80
Oct – Dec 51.10 45.80 47.00
Adjusted Prices (for stock rights offer and 8% stock dividend):

2014 HIGH LOW CLOSE
Jan – Mar 56.28 51.97 53.06
Apr – Jun 57.19 50.00 51.02
Jul - Sept 52.31 47.69 50.80
Oct - Dec 51.10 45.80 47.00
Actual Prices:
2013 HIGH LOW CLOSE
Jan – Mar 68.30 54.40 64.00
Apr – Jun 78.20 58.00 64.20
Jul – Sept 73.00 50.00 60.00
Oct – Dec 62.70 55.05 59.00
Adjusted Prices (for 10% stock dividend):

2013 HIGH LOW CLOSE
Jan - Mar 62.09 49.45 58.18
Apr - Jun 71.09 52.73 58.36
Jul - Sept 66.36 50.00 60.00
Oct - Dec 62.70 55.05 59.00
PRICE INFORMATION AS OF DECEMBER 29, 2014 (LAST TRADING DAY): P47.00 PER SHARE
PRICE INFORMATION AS OF FEBRUARY 27, 2015 (LATEST PRACTICABLE TRADING DATE): P46.60 PER SHARE
DIVIDEND POLICY
In accordance with the Bank’s by-laws, dividends shall be declared and paid out of the unrestricted retained earnings
which shall be payable in cash, property, or stock to all stockholders on the basis of outstanding stock held by them, as
often and at such times as the Board of Directors may determine, and in accordance with laws and applicable regulations.
The payment of dividend in the future will depend on the Bank’s earnings, cash flow, financial condition and other factors.
Dividends may be declared only from unrestricted retained earnings.
Dividends declared by the Bank are subject to the approval of the Bangko Sentral ng Pilipinas, Philippine Stock
Exchange, and Securities and Exchange Commission.
DIVIDEND HISTORY
2014 2013 2012 2011 2010

Stock Dividend 8% 10% 10% 10% 10%
Cash Dividend 10% 12% 12% 12% 12%
INVESTOR RELATIONS
Inquiries from investors, analysts, and the financial community are handled by the Investor & Corporate Relations
Group:
Alexander C. Escucha
Investor & Corporate Relations Group
28/F BDO Equitable Tower
8751 Paseo de Roxas
Tel. No.: (+632) 885-5601
Email: investor-relations@chinabank.ph
SM Retail Inc.
(100%)
SM Prime Holdings Inc.

(49.7%)
Multi-Realty Development
Corporation (90.9%)
Sto. Roberto Marketing Corporation

(100%) China Bank Savings, Inc.
(98%)
Intercontinental Development
Corporation (99.7%) Planters Development Bank*
(99.85%)
Legend:
BDO Unibank Inc.
SMIC Subsidiary (45.1%)
CBC Properties &
Subsidiary of SMIC Subsidiary Computer Center, Inc. (100%)
China Banking Corporation
Associates (19.9%)
Associate of SMIC Subsidiary CBC Insurance Brokers, Inc.
(100%)
Financial Allied Subsidiary Primebridge Holdings, Inc.
(98.2%)
Non Financial Allied Subsidiary
CBC Forex Corporation**
Financial Allied Affiliate (100%)
Sodexo Motivation Solutions
Philippines, Inc. (40%)
Notes:
Manulife China Bank Life Assurance
* For merger with China Bank Savings, Inc. Atlas Consolidated Mining and Corporation (40%)
** For dissolution Development Corporation (29.1%)
% Refers to Effective Ownership
Henfels Investments
Corporation (99.0%)
Belleshares Holdings, Inc. Belle Corporation

(99%) (27.9%)
Mountain Bliss Resort and Manila Southcoast Development

Development Corporation (99.8%) Corporation (94.2%)
Bellevue Properties Inc.

(62.0%)
Asia Pacific College

(51.8%)
Nagtahan Property Holdings

(99.7%)
Net Group
(90%)
Citymall Commercial Centers, Inc.

(34%)
BOARD OF DIRECTORS
From left: Gilbert U. Dee, Henry Sy Sr., Hans T. Sy
HENRY SY, SR., 90, Filipino, is the Honorary both are PSE-listed companies. Mr. Sy graduated and CBC Finance Corporation. Mr. Dee holds a
Chairman and Advisor to the Board since 1997. from the De La Salle University with a degree in Bachelor of Science degree in Banking from the
His election as Honorary Chairman on May Mechanical Engineering, and over the years, had De La Salle University, and a Masters in Business
18, 2006 was formalized on February 7, 2007 attended various training programs, the most Administration (MBA) degree in Finance from
after clearances from the BSP and SEC were recent of which were the Exclusive Corporate the University of Southern California. He has
obtained. He is also the Chairman of listed Governance Workshop facilitated by the Institute had extensive training in banking operations and
companies SM Investments Corporation, BDO of Corporate Directors (ICD) and the Anti-Money corporate directorship. His most recent trainings
Unibank, Inc. (Emeritus), and SM Prime Holdings, Laundering Training conducted by the BSP Anti- were the Corporate Governance Workshop and
Inc. (Emeritus). Mr. Sy holds an Associate in Money Laundering Council (AMLC) Secretariat the Anti-Money Laundering Training in 2014.
Commercial Science degree from the Far Eastern in 2014.
University and was conferred a doctorate degree RICARDO R. CHUA, 63, Filipino, is director
in Business Management Honoris Causa by the GILBERT U. DEE, 79, Filipino, is the Vice / President and Chief Executive Officer (since
De La Salle University. Chairman of the Board (since May 5, 2011). He September 1, 2014). He is also the chairman
is also the chairman of the Credit Committee of the Management Committee and a member
HANS T. SY, 59, Filipino, is the Chairman and the Board of Trustees of CBC Employees’ of the Trust Investment Committee, Executive
of the Board (since May 5, 2011). He is Retirement Fund and a member of the Executive, Committee, Credit Committee, and the Board of
also the chairman of the Executive and Compensation or Remuneration, and Risk Trustees of CBC Employees’ Retirement Fund. He
Compliance committees and a member of the Management committees. He was first elected was first elected to the China Bank Board on May
Risk Management, Corporate Governance, to the China Bank Board on March 6, 1969, 8, 2008. He also serves on the Boards of
Nominations, and Compensation or and served as Chairman from 1989 to 2011. He China Bank subsidiaries China Bank Savings, Inc.
Remuneration committees. He was first elected also serves as chairman of CBC Properties and (CBS), China Bank Insurance Brokers, Inc. (CBIBI),
to the China Bank Board on May 21, 1986, and Computer Center, Inc. (PCCI) and Union Motor PCCI, Plantersbank, and affiliate Manulife
served as Vice Chairman from 1989 to 2011. Corporation, and as director of Super Industrial China Bank Life Assurance Corp. (MCBLife),
In addition to China Bank, he is director and Corporation—all non-listed companies. He was as well as other non-PSE listed companies
president of SM Prime Holdings, Inc. and adviser previously on the boards of Philippine Pacific CAVACON Corporation and Sun & Earth
to the board of SM Investments Corporation, Capital Corporation, Philex Mining Corporation, Corporation. He was director/treasurer of CBC
BOARD OF DIRECTORS 55
From left: Ricardo R. Chua, Peter S. Dee, and Joaquin T. Dee
Venture Capital Corp. from 1989 to 2003 and Resources Corporation, Commonwealth Foods, and director/treasurer of Suntree Holdings
director of the Philippine Clearing House Corp. Inc., and GDSK Development Corporation. In Corporation—all of which are not listed in the
from 2005 to 2011. Mr. Chua is a certified public addition, he serves as independent director of PSE. Mr. Dee holds a Bachelor of Science degree
accountant and holds a Bachelor of Science PSE-listed companies City & Land Developers, in Commerce from the Letran College. He has
degree in Business Administration, Major in Inc., and Cityland Development Corporation. He had extensive training in banking, operations,
Accounting from the University of the East, cum previously served on the boards of Sinclair (Phils.), sales, and corporate directorship, at China Bank
laude, and a Master in Business Management Inc. and Can Laquer, Inc. Mr. Dee is a graduate and at Wellington Flour Mills where he was vice
(MBM) degree from the Asian Institute of of the De La Salle University/University of the East president for Sales and Administration from
Management (AIM). He has had extensive with a Bachelor of Science Degree in Commerce. 1964 to 1994. His most recent trainings were the
training in banking operations and corporate He also completed a Special Banking course at Corporate Governance Workshop and the Anti-
directorship, which include an Orientation Course the American Institute of Banking. He has had Money Laundering Training in 2014.
on Corporate Governance for Bank Directors intensive training in various aspects of banking
in 2002, Anti-Money Laundering Act seminars and corporate governance. In 2014, he attended DY TIONG, 85, Filipino, is an Independent
in 2009 and 2014, and Corporate Governance the Corporate Governance Workshop and the Director for three years in accordance with SEC
Workshop in 2014. Anti-Money Laundering Training. Memorandum Circular No. 9, Series of 2011. He
is the chairman of the Nominations Committee
PETER S. DEE, 73, Filipino, has been a * Until his retirement on August 31, 2014 and a member of the Audit and Compensation
member of the Board since April 14, 1977. or Remuneration Committees. He was first
He previously served as China Bank President JOAQUIN T. DEE, 79, Filipino, has been on the elected to the China Bank Board on May 9, 1985.
and Chief Executive Officer from 1985 until his China Bank Board since May 10, 1984. He is Outside of China Bank, he serves on the boards
retirement on August 31, 2014. He is a member currently the chairman of the Risk Management of non-PSE listed companies Panelon Philippines,
of the Executive Committee, Trust Investment Committee and a member of the Executive, Inc. as vice chairman, Chiang Kai Shek College as
Committee*, Credit Committee* and Board of Audit, Compliance, Nominations, and Corporate honorary chairman, and Dr. Sun Yat Sen Society
Trustees of CBC Employees’ Retirement Fund*. Governance committees. He also serves as as chairman emeritus. He was director of CBC
He is also a director of China Bank subsidiaries director/president of JJACCIS Development Finance, Inc. from 1980 to 2001 and president
PCCI and CBIBI and of Hydee Management & Corporation and Enterprise Realty Corporation, of Panelon Development Corporation from
BOARD OF DIRECTORS
From left: Dy Tiong, Herbert T. Sy, and Harley T. Sy
1990 to 1994. He is a graduate of the National Directors in 2002, Anti-Money Laundering Act
ALBERTO S. YAO, 68, Filipino, is an Independent
Jean Kuan College with a degree of Bachelor of 2001 Seminar in 2009, and the Corporate
Director for three years in accordance with SEC
of Science in Business Administration. Over the Governance Workshop and Update on AMLA
Memorandum Circular No. 9, Series of 2011. He
years, he had attended various trainings and Training in 2014.
is the chairman of the Audit Committee and a
seminars to enhance his leadership skills and
member of the Risk Management, Compliance,
broaden his corporate governance knowledge. HARLEY T. SY, 55, Filipino, has been a Director
Nominations, Corporate Governance, and
His most recent trainings were the Corporate since May 24, 2001. He is a member of the
Compensation or Remuneration Committees.
Governance Workshop and the Anti-Money Trust Investment Committee and also serves
He was first elected to the China Bank Board
Laundering Training in 2014. in other SM Group companies: as President of
on July 7, 2004. He is also an independent
PSE-listed company SM Investments Corporation
director of China Bank subsidiaries CBS and
HERBERT T. SY, 58, Filipino, was first elected and as director of SM Synergy Properties
Plantersbank and serves in other companies not
Director on January 7, 1993. He is a member Holdings Corporation, Sybase Equity Investments
listed in the PSE: as president & CEO of Richwell
of the Trust Investment Committee and also Corporation, and Tagaytay Resort Development
Trading Corporation, Richwell Philippines, Inc.,
serves on the boards of non-listed companies Corporation—all of which are not listed in
Europlay Distributor Co., Inc., and Internationale
Supervalue, Inc., Super Shopping Market, Inc., the PSE. He took up Bachelor of Science in
Globale Marques, Incorporated; and as president
Sondrik, Inc., National University, and Sanford Commerce, Major in Finance, at the De La Salle
of Richphil House Incorporated and Megarich
Marketing Corp., and PSE-listed SM Prime University, and had attended various trainings
Property Ventures Corp. Mr. Yao holds a Bachelor
Holdings, Inc. He holds a Bachelor of Science and workshops to enhance his banking and
of Science degree in Business Administration
degree in Management from the De La Salle leadership skills, including the Orientation Course
from the Mapua Institute of Technology. He
University. Aside from his vast experience in being on Corporate Governance for Bank Directors
was vice president for merchandising of Zenco
a director and/or officer in companies engaged in in 2002, Enterprise Risk Management in 2008,
Sales, Inc. from 1968 to 1975. Throughout his
food retailing, rubber manufacturing, investment, Anti-Money Laundering Act (AMLA) of 2001
long and remarkable career, he had attended
real estate development and mall operations, Seminar in 2009, and the Corporate Governance
various trainings and workshops, including the
he has had extensive training in banking and Workshop and Update on AMLA Training in
Director Orientation Course in 2004, Anti-Money
corporate directorship, including the Orientation 2014.
Course on Corporate Governance for Bank
BOARD OF DIRECTORS 57
From left: Alberto S. Yao, Roberto F. Kuan, and Jose T. Sio
Laundering Act (AMLA) of 2001 Seminar in 2009, Science degree in Business Administration. He North Tollways Corporation, OCLP (Ortigas)
and the Corporate Governance Workshop and holds an MBM degree from AIM, and a PhD in Holdings, Inc., First Asia Realty Development
Update on AMLA Training in 2014. Humanities, Honoris Causa, from the Lyceum Corporation, Asia Pacific College, and Carmen
Northwestern University. He also attended the Copper Corporation. Currently the Chief Finance
ROBERTO F. KUAN, 66, Filipino, is an Top Management Program conducted by AIM in Officer of SMIC, he was voted as CFO of the
Independent Director for three years in Bali, Indonesia, as well as various trainings and Year in 2009 by the Financial Executives of
accordance with SEC Memorandum Circular workshops on banking, leadership, and corporate the Philippines and in various years had been
No. 9, Series of 2011. He is the chairman of the governance, including the Orientation Course awarded as Best CFO (Philippines) by Hong
Corporate Governance and Compensation or on Corporate Governance in 2005, a seminar Kong-based business publications such as
Remuneration Committees, and a member of the on Anti-Money Laundering Act of 2001 in 2009, Alpha Southeast Asia, Finance Asia, Corporate
Nominations Committee. He was first elected to Corporate Governance Workshop in January Governance Asia and The Asset. He was a
the China Bank Board on May 5, 2005. He is also 2014, and Update on AMLA training in August partner of SyCip Gorres Velayo & Co. (SGV) from
independent director of China Bank subsidiaries 2014. 1977 to 1990. Mr. Sio, CPA, holds an MBA
CBS and Plantersbank, of non PSE-listed degree from the New York University, USA, and
companies Seaoil Phils., Inc. and Towers Watson JOSE T. SIO, 75, Filipino, was elected as a Bachelor of Science degree in Commerce,
Insurance Brokers Philippine, and of PSE-listed Director on November 7, 2007. He is the Major in Accounting, from the University of San
Far Eastern University, Incorporated. In addition, Chairman of the Trust Investment Committee Agustin. He has had extensive trainings here
he serves as trustee of St. Luke’s Medical Center, and also serves on the boards of PSE-listed and abroad, including debt and equity financing
SLMC Global City, Inc., St. Luke’s College of companies SM Investments Corporation (SMIC), during the Euromoney Conference in China in
Medicine-William H. Quasha Memorial, and Brent Atlas Consolidated Mining and Development 2005, corporate governance seminars conducted
International School, Inc. He is the founder and Corporation, and Belle Corporation as director, by the De La Salle University in 2003 and by the
former president of Chowking Food Corporation, and BDO Unibank, Inc. and Premium Leisure ICD in February 2014, and anti-money laundering
and former chairman/president of Lingnam Corporation as adviser to the board. He is seminars conducted by BSP in 2009 and 2014.
Enterprises, Inc. Mr. Kuan is a graduate of the also director in several companies not listed in
University of the Philippines with a Bachelor of the PSE, such as SM Keppel Land, Inc., Manila
MANAGEMENT COMMITTEE
From left: Alberto Emilio V. Ramos, Nancy D. Yang, Antonio S. Espedido Jr., Gilbert U. Dee, Ricardo R. Chua, and William C. Whang
CARLOS M. BORROMEO, 49, Filipino, was graduated from the University of San Francisco, She holds a Bachelor of Arts degree from
appointed by the Board on November 5, USA with a Business Administration degree. the Philippine Women’s University and a
2014 as Chief Financial Officer (CFO) and post graduate scholarship grant in Human
Head of Financial Management Segment of WILLIAM C. WHANG, 56, Filipino, executive Development & Child Psychology from Merrill
China Bank effective November 17, 2014. As vice president, is the head of the Lending Palmer Institute in Detroit, Michigan, USA.
he will continue to function as President of Business Segment and concurrent head of
Planters Development Bank (Plantersbank), Institutional Banking Group. He is also a RAMON R. ZAMORA, 66, Filipino, senior
his interlocking appointment to China Bank director/treasurer of China Bank Insurance vice president, is the head of the Centralized
is subject to approval by the Monetary Board. Brokers, Inc. (CBIBI) and CBC Properties and Operations Group, Remittance Business
He was previously the CFO of Security Bank Computer Center, Inc. (PCCI). He served Operations, and Correspondent Banking. He
and director of Security Finance, Inc. and SB in a variety of senior management roles at is also a director of CBC Forex, PCCI, CBS, and
Cards Corporation. He has attended numerous Metrobank, Republic National Bank of New Plantersbank. He was formerly a vice president
trainings in banking, anti money laundering, and York, International Exchange Bank, and Sterling at Citibank N.A. and has had extensive training
corporate governance. He holds an Economics Bank of Asia, and had attended numerous on financial products, credit risk management,
degree from the Ateneo de Manila University seminars and conferences on corporate IFRS, electronic banking, and corporate
and a Masters in Business Management governance, branch based marketing, quality governance. He holds an Economics degree
(MBM) degree from the Asian Institute of service management, and sales management. from the Ateneo de Manila University.
Management (AIM). He holds a Business Management degree from
the De La Salle University. RENE J. SARMIENTO, 61, Filipino, senior
ANTONIO S. ESPEDIDO, JR., 59, Filipino, vice president, is the head of the Trust Group
executive vice president, is the head of the NANCY D. YANG, 75, Filipino, senior vice and a director of CBS. He has over 30 years
Financial Capital Markets & Investment Segment president, is the head of the Retail Banking of investment and trust operations experience
and concurrent head of the Treasury Group. Business. She is also on the boards of CBS as gained from Ayala Investment and Development
He is also a director of China Bank subsidiaries vice chairman and of CBIBI and Plantersbank Corporation, Far East Bank, and Security Bank,
CBC Forex Corporation (CBC Forex), China Bank as director. She had attended several training and had attended various seminars on estate
Savings, Inc. (CBS), and Plantersbank. He held programs here and abroad, including the Allen planning, risk management practices on trust,
various executive positions at the Bank of the Management Program, BAI Retail Delivery investment management, and corporate
Philippine Islands (BPI) and Citytrust / BPI, among Conference in San Francisco; Phoenix, Arizona; governance. A certified public accountant, he
others, prior to joining China Bank, and has and Miami, Florida, USA, Environmental Risk holds an Accounting degree, magna cum laude,
had extensive training on fund transfer pricing, Management for Bankers conducted by the from the De La Salle University and an MBM
project and portfolio management, strategic Bank of America, as well as seminars on anti- degree from AIM.
thinking, and corporate governance. He money laundering and corporate governance.
MANAGEMENT COMMITTEE 59
From left: Carlos M. Borromeo, Rene J. Sarmiento, Ramon R. Zamora, Rosemarie C. Gan, Virgilio O. Chua, and Alexander C. Escucha
ALEXANDER C. ESCUCHA, 58, Filipino, senior banks, including BPI and Tokai Bank of financial markets, corporate risk assessment,
vice president, is the head of the Investor and California. He had attended numerous training and corporate governance. Before joining
Corporate Relations Group and a director of programs on treasury products, asset-liability China Bank, he held senior executive positions
CBS and Plantersbank. He is also the chairman management, credit and financial analysis, at Citibank N.A., First Metro Investment Corp.,
of the UP Visayas Foundation, Inc. and is an corporate governance, and strategic marketing. and ING Bank, N.V. He holds a Management
international resource person at the Asian He has bachelor’s degrees in Political Science Engineering degree from the Ateneo de Manila
Banker Summit. He was previously vice president and Marketing Management from the De La University.
at the International Corporate Bank. He also Salle University, an MBM degree from AIM,
served as president of the Philippine Economic and a Treasury Professional Certificate from the
Society and concurrent chairman of the Bankers Association of the Philippines.
Federation of ASEAN Economic Associations,
and as president of the Corporate Planning ROSEMARIE C. GAN, 57, Filipino, senior vice
Society of the Philippines and the Bank president, is the deputy group head of the Retail
Marketing Association of the Philippines. He Banking Business. She has been with the Bank
had attended numerous seminars, most recently, for 36 years and has had extensive exposure
the corporate governance orientation conducted and training in marketing, financial analysis,
by ICD in 2014, and various economic briefings credit portfolio management, strategic planning,
and conferences, such as the JP Morgan and corporate governance. She graduated
Philippine Conference in 2013. He graduated magna cum laude from the University of Santo
cum laude from the University of the Philippines Tomas with a Management degree and was a
with a degree in Economics. recipient of the distinguished Rector’s Award.
In 2013, she completed AIM’s Advanced Bank
ALBERTO EMILIO V. RAMOS, 55, Filipino, Management Program.
senior vice president, is the president of CBS
(seconded in 2011), director of both CBS and VIRGILIO O. CHUA, 48, Filipino, first vice
Plantersbank, and a nominee to the additional president II, is the head of Investment Banking
seat of China Bank on the Board of Manulife Group. He has 27 years of experience in
China Bank Life Assurance Corporation the fields of investment banking, corporate
(MCBLife). He is also a trustee/treasurer of the banking, and credit risk management, and has
Chamber of Thrift Banks. He was previously the had extensive training on capital markets and
president of Philam Asset Management, Inc. investment banking, project finance, mergers
and held key positions in local and international and acquisitions, account management,
SENIOR OFFICERS
FIRST VICE PRESIDENTS

From left: Ananias S. Cornelio III, Gerard Majella T. Dee, Victor O. Martinez, Philip S.L. Tsai, and Patrick D. Cheng
VICE PRESIDENTS
From left: Cristina P. Arceo, Geoffrey D. Uy, Lilibeth R. Cariño, Angela D. Cruz (seated), Manuel M. Te, Delia Marquez, Manuel C. San Diego, Maria Luz B. Favis (seated),
Elizabeth C. Say, Shirley G.K. Tan, and Henry D. Sia
SENIOR OFFICERS 61
VICE PRESIDENTS
From left: Maire Karabel D. Viola, Marisol M. Teodoro (seated), Jose Francisco Q. Cifra, Shirley C. Lee (seated), Noemi L. Uy,
Marie Carolina L. Chua, Albert V. Alcala, Marilyn G. Yuchenkang, Lily I. Reyes-Lao, Christina F. Gotuaco, Luis M. Afable, Jr., and Layne Y. Arpon
From left: Jose L. Osmeña, Jr., Dorothy T. Maceda, Maria Rosanna Catherina L. Testa (seated), Ma. Cristina C. Hernandez, Domingo P. Dayro, Jr.,
Madelyn V. Fontanilla (seated), Corazon I. Morando, Melissa F. Corpuz, Wilfredo L. Sy, Marissa B. Espino, and Stephen Y. Tan
CHINA BANK INSURANCE BROKERS, INC. CBC PROPERTIES AND COMPUTER CENTER, INC.
President Julieta P. Guanlao and Bancassurance Head Cynthia B. Nono From left: General Manager Phillip M. Tan, Chief Technology Officer Editha N. Young,
and VP Augusto P. Samonte
CHINA BANK SAVINGS AND PLANTERSBANK

From left: FVP Jeffrey Jose L. Bognot, SVP Gary A. Vargas, FVP Alesandra E. Tiaoqui, FVP Luis Bernardo A. Puhawan, VP Victoria Tambunting Alfonso (seated),
EVP Jaime Valentin L. Araneta, VP Allan E. Borreo, SVP Liberty S. Basilio, VP James Christian Dee, and SVP Jose F. Acetre
MANAGEMENT DIRECTORY 63
MANAGEMENT DIRECTORY
VICE CHAIRMAN Maire Karabel D. Viola Mary Ann R. Ducanes Rosie T. Faytone
Gilbert U. Dee Marilyn G. Yuchenkang Randall A. Evangelista Anthony B. Fama
Susan U. Ferrer Angelito T. Fernandez
PRESIDENT & CHIEF SENIOR ASSISTANT VICE Marissa G. Garcia Pablito P. Flores
EXECUTIVE OFFICER PRESIDENTS Ma. Salome D. Garcia Ronaldo H. Francisco
Ricardo R. Chua Evelyn T. Alameda Vivian T. Kho Alexander V. Gaite
Patrick Y. Ang Maria Margaret U. Kua Michelle Lorei R. Gayoma
EXECUTIVE VICE Rogelio B. Avellanosa Melecio C. Labalan, Jr. Alvin C. Go
PRESIDENTS Victor Geronimo S. Calo Jennifer Y. Macariola Dennis S. Go II
Antonio S. Espedido, Jr. Camilo S. Cape Jocelyn A. Manga Marites B. Go
William C. Whang Jeannette H. Chan Katherine N. Manguiat Virginia G. Go
Grace A. Cruz Ordon P. Maningding Lucia I. Gorayeb
SENIOR VICE PRESIDENTS Ricardo J. De Guzman III Ronald R. Marcaida Hector B. Holgado
Alexander C. Escucha Therese G. Escolin Remedios Emilia R. Olivar Ruth D. Holmes
Rosemarie C. Gan Adela A. Evangelista Enrico J. Ong Gladys Antonette P. Isidro
Alberto Emilio V. Ramos Cesare’ Edwin M. Garcia Ma. Victoria G. Pantaleon Alex A. Jacob
Rene J. Sarmiento Grace Y. Ho Julie Ann T. Pring Ma. Teresa O. Lao
Nancy D. Yang Ma. Arlene Mae G. Lazaro Arnulfo H. Roldan Ma. Giselle A. Liceralde
Ramon R. Zamora Eric Y. Lee Ana Ma. Raquel Y. Samala Ma. Gladys C. Liwag
Maria Alicia P. Libo-on Alejandro F. Santos Mary Ann L. Llanes
FIRST VICE PRESIDENTS Juan Jesus C. Macapagal Fernando S. Santos, III Maria Melinda O. Lo
Patrick D. Cheng Mandrake P. Medina Maria Sheila V. Sarmenta- Gloria G. Mañosca
Virgilio O. Chua Juvy J. Pabustan Dayao Victor P. Mayol
Victor O. Martinez Frederick M. Pineda Ma. Cecilia D. So Sheila Jane F. Medrero
Ananias S. Cornelio III Rafael Ramon C. Ramos Maria Marta Theresa S. Suarez Jerome C. Musico
Gerard Majella T. Dee Danilo T. Sarita Roxana Angela S. Tan Susie W. Napili
Philip S. L. Tsai Francisco Eduardo A. Ma. Cecilia V. Tejada Tadeos R. Natividad
Sarmiento Nelson L. Tiu Gil P. Navelgas
VICE PRESIDENTS Cynthia U. Surpia Edna A. Torralba Wendy G. Ngo
Luis M. Afable, Jr. Clara C. Sy Josefina Anna D. Trinidad Erlan Antonio B. Olavere
Albert V. Alcala Belenette C. Tan Ma. Edita Lynn Z. Trinidad Eleanor C. Ona
Cristina P. Arceo Jeanny C. Tan Christopher C. Ty Remberto D. Orcullo
Layne Y. Arpon Julieta C. Tan Hudson Q. Uy Lilian B. Orlina
Lilibeth R. Cariño Irene C. Tanlimco Lauro C. Valera Alfred Paul L. Paiso
Marie Carolina L. Chua Jasmin O. Ty Anthony Ariel C. Vilar Josephine D. Paredes
Jose Francisco Q. Cifra Virginia Y. Uy Rosario D. Yabut Flora C. Peña
Melissa F. Corpus Esmeralda R. Vicente Sandra Mae Y. Yao Hazel Marie A. Puerto
Angela D. Cruz Carina L. Yandoc Vicente S. Yap, Jr. Noreen S. Purificacion
Domingo P. Dayro, Jr. George C.Yap Michelle Y. Yap-Bersales Evelyn O. Ramos
James Christian T. Dee Jocelyn O. Yu Hanz Irvin S. Yoro Roberto C. Ramos
Marissa B. Espino Mary Joy L. Yu Ma. Luisa C. Rivera
Maria Luz B. Favis SENIOR MANAGERS Eleanor D. Rosales
Madelyn V. Fontanilla ASSISTANT VICE Kathlyn I. Abalos Anita Y. Samala
Cristina F. Gotuaco PRESIDENTS Nellie S. Alar Edellina C. Santiago
Ma. Cristina C. Hernandez Baldwin A. Aguilar Jay Angelo N. Anastacio Charmaine V. Santos
Shirley C. Lee Ma. Hildelita P. Alano Freddie S. Bandong Edgardo M. Santos
Dorothy T. Maceda Ramiro A. Amanquiton Eric Von D. Baviera Ma. Graciela C. Santos
Delia Marquez Edwin D. Aquino Meneleo S. Bernardo Roque A. Secretaria, Jr.
Jose L. Osmeña, Jr. Marissa A. Auditor Robert O. Blanch Corina R. Sesdoyro
Lily I. Reyes-Lao Ma. Luisa O. Baylosis Alex M. Campilan Emilie L. Sia
Henry D. Sia Restituto B. Bayudan Sherry Anne F. Canillas Ernanie V. Silvino
Wilfredo L. Sy Jesus S. Belaniso III Hermenegildo G. Carino Paul D. Siongco
Manuel C. San Diego Yasmin I. Biticon Crisostomo L. Celaje Anna Liza M. Tan
Elizabeth C. Say Jonathan C. Camarillo Eleanor S. Cervantes Michaela L. Teng
Shirley G.K.T. Tan Victoria G. Capacio Ma. Rosalie F. Cipriano Mary Ann E. Tiu
Manuel M. Te Victoria L. Chua Maria Luisa C. Corpus Jacqueline T. Tomacruz
Marisol M. Teodoro Ma. Jeanette D. Cuyco Aida D. Cristobal Cristina C. Ty
Stephen Y. Tan Esperose S. De Claro Amelia Consolacion B. Cruz David Andrew P. Valdellon
Maria Rosanna Catherina L. Norman D. C. Del Carmen Mary Evangeline A. Cruz Jonathan T. Valeros
Testa Reynaldo P. Del Rosario, Jr. Rodolfo S. De Lara Edwin S. Ventura
Noemi L. Uy Jinky T. Dela Torre Reylenita M. Del Rosario April Marie O. Yago
Geoffrey D. Uy Gemma B. Deladia Leilani B. Elarmo Manuel O. Yap
Eleanor Q. Faigao Vivian L. Yong
FINANCIAL STATEMENTS CONTENT
65 Management’s Discussion on Result of Operations and

Financial Condition
66 Disclosure on Capital Structure and Capital Adequacy
74 Report of the Audit Committee to the Board of Directors
75 Statement of Management’s Responsibility for Financial
Statements
76 Independent Auditors’ Report
77 Balance Sheets
78 Statements of Income
79 Statements of Comprehensive Income
80 Statements of Changes in Equity
82 Statements of Cash Flows
84 Notes to Financial Statements
65
MANAGEMENT’S DISCUSSION ON RESULT OF OPERATIONS AND FINANCIAL CONDITION
RESULTS OF OPERATIONS
China Bank recorded a consolidated net income of P5.11 billion in 2014 on the back of sustained growth in core business operations.
This translates to a 9.90% return on equity and 1.12% return on assets.
Total operating income consisting of net interest income and fee-based income increased by 24.85% or P3.75 billion to P18.85 billion.
The Bank’s acquisition of Planters Development Bank (Plantersbank) during the year brought in P1.85 billion in operating income,
accounting for 49% of the total operating income growth of the Bank.
Net interest income improved to P14.09 billion, 41.80% higher than 2013 due to robust growth in earnings from loans and receivables
coupled with the drop in interest cost of deposits, resulting in a net interest margin of 3.30%, up from last year’s 2.98%.
Total fee-based income decreased by 7.78% to P4.76 billion from P5.16 billion last year mainly from the 71.90% drop in trading gains to
P535.26 million as interest rates volatility diminished opportunities for trading gains. Excluding trading gains, total fee-based income
increased by 29.74%. Service charges, fees and commissions increased by 35.05% to P1.56 billion boosted by investment banking
fees, trade-related commissions, and branch-based fees. The foreign exchange gain of P329.94 million recovered from a loss of P89.66
million because of the turnaround in the Bank’s forex spot and swap transactions.
Miscellaneous income improved from the Bank’s increased stake in Manulife China Bank Life Assurance Corporation (MCBLife) from
5.0% to 40.0% which resulted in additional gain of P373.30 million. On the other hand, lower trust and foreclosed properties sales
volumes contributed to the decline in both trust fees by P169.23 million and gain on sale of investment properties by P107.68 million.
The share of total fee-based income to total revenues was at 20.55%.
Total operating expenses (excluding provision for impairment and credit losses) increased by 31.68% to P11.73 billion as the Bank continued
to pursue its expansion strategy with the acquisition of Plantersbank, investment in new branches, upgrade of technology platform, and
hiring of additional manpower. Compensation and fringe benefits, which accounts for 36% of the total operating expenses, grew by
P1.06 billion or 34%. Other operating expenses such as occupancy cost, stationary, supplies and postage, repairs and maintenance
posted increases of 35.73%, 25.35%, and 14.77%, respectively, from the on-going branch expansion. Miscellaneous expenses
increased by 48.14% due to higher expenses related to technology, banking fees, and sale of foreclosed properties, among others. The
Bank’s cost-to-income ratio stood at 62.23%. Provision for impairment and credit losses increased to P440.90 million with the growth
in the Bank’s loan portfolio.
The Bank’s sustained profitability contributed to its capital strength and enabled it to consistently pay dividends to stockholders.
For 2014, China Bank paid cash dividends of P1.0 per share or a total of P1.59 billion, which represents a total payout of 31.14% of prior
year’s net income (attributable to equity holders of the Parent Bank). The Bank also declared an 8.0% stock dividend amounting to
P1.27 billion.
FINANCIAL CONDITION
The Bank’s total assets expanded 13.84% to P470.94 billion from P413.70 billion in 2013 mainly from the robust growth in loan portfolio
and the inclusion of Plantersbank.
Gross loan portfolio grew 30.74% year-on-year to P297.65 billion mainly from higher demand across all customer segments: corporate,
commercial and consumer, as well as the additional loans attributed to Plantersbank amounting to P30.40 billion. Loans, net of
impairment losses, grew by 31.68% to P290.42 billion from P220.54 billion in 2013. The Bank’s non-performing loans (NPLs) ratio stood
at 2.24% while loan loss coverage ratio was computed at 101.25%.
Liquid assets comprised 32.91% of the Bank’s total assets, lower than the 42.80% in 2013 as the Bank continued to expand its lending
portfolio and channel fewer funds to interbank placements and BSP’s facilities. Total investment securities consisting of Financial
Assets at Fair Value through Profit or Loss, Available-for-Sale and Held-to-Maturity Financial Assets reached P59.03 billion, representing
12.53% of total assets as more resources were channeled to lending vis-à-vis investing activities.
On the liabilities side, total deposits increased by 12.71% to P399.30 billion, mainly from the larger branch network, and the
P41.03 billion contribution of Plantersbank. Demand and savings deposits grew by 27.32% and 20.94%, respectively, boosting the share
of low cost deposits to total deposits to 48.39% from 43.96% in 2013. The growth in deposits mainly funded the expansion in loan
portfolio with loans-to-deposit ratio growing to 72.73% from 62.25% last year.
Total capital funds (including minority interest) reached P56.57 billion, 24.60% higher than 2013 primarily from the retained profits and
the P8.0 billion stock rights offer last May 2014. Net unrealized gains on available for sale financial assets increased by P202.18 million
from a loss of P79.26 million due to the disposition and increase in market value of unsold securities. The Bank’s Tier 1 capital adequacy
ratio (CAR) of 13.95% and total CAR of 14.88% remained higher than the 10% regulatory minimum requirement.
DISCLOSURE ON CAPITAL STRUCTURE AND CAPITAL ADEQUACY
Capital Fundamentals
We believe that China Bank can only achieve sustainable growth by maintaining strong capital fundamentals. Major business
initiatives are undertaken with the appropriate capital planning which also takes into consideration constraints and changes
in the regulatory environment. This is necessary to ensure that the Bank’s commercial objectives are equally aligned with
its ability to maintain a capital position superior to the industry. The Board and Senior Management recognizes that a balance
should be achieved with respect to China Bank’s earnings outlook vis-à-vis capital fundamentals that can take advantage of
growth opportunities while increasing the Bank’s ability to absorb shocks.
Risk-based capital components, including deductions, on a parent and consolidated basis:
Qualifying Capital (Basel III) Consolidated Parent Company

In PhP Million 2014
Common Equity Tier 1 Capital
Paid-up common stock 17,164.14 17,164.14
Additional paid-in capital 6,987.56 6,987.56
Retained Earnings 28,828.35 27,722.26
Other Comprehensive Income 93.56 93.05
Minority Interest 31.71 -
Less: Unsecured DOSRI (350.33) (349.44)
Less: Deferred Tax Assets (1,837.63) (1,288.61)
Less: Goodwill (376.64) (222.84)
Less: Other Intangible Assets (949.68) (442.12)
Less: Defined Benefit Pension Fund Assets/Liabilities (1,373.67) (1,373.67)
Less: Investment in Subsidiary (249.33) (3,990.61)
Less: Significant Minority Investment (106.03) (106.03)
Less: Other Equity Investment (4.95) (2.76)
Total CET 1 Capital 47,857.06 44,190.93
Additional Tier 1 Capital - -
Total Tier 1 Capital 47,857.06 44,190.93
Tier 2 Capital
General Loan Loss Provision 3,196.08 2,685.86
Total Tier 2 Capital 3,196.08 2,685.86
Total Qualifying Capital 51,053.14 46,876.79
Qualifying Capital (Basel II) Consolidated Parent Company

In PhP Million 2013 2012 2013 2012
Tier 1 Capital
Paid-up common stock 14,276.62 12,978.74 14,276.62 12,978.74
Additional paid-in capital 671.50 671.50 671.50 671.50
Retained Earnings 26,527.68 23,968.99 26,258.03 23,976.91
Cumulative Foreign Currency Translation 66.35 (65.51) 66.35 (65.51)
Minority Interest 49.85 51.56 - -
Less: Unsecured DOSRI (520.98) (258.69) (520.52) (258.26)
Less: Deferred income tax (1,732.30) (1,768.48) (1,724.64) (1,756.63)
Less: Goodwill (222.84) (241.31) (222.84) (222.84)
Total Tier 1 Capital 39,115.88 35,336.80 38,804.50 35,323.91
Less: Investment in Subsidiary-50% (120.51) (102.14) (768.26) (822.72)
Net Tier 1 Capital 38,995.37 35,234.66 38,036.24 34,501.19
Tier 2 Capital
General Loan Loss Provision 2,452.99 2,055.59 2,341.85 1,985.88
Unrealized Gain AFS Equity 39.14 29.80 39.14 29.80
Total Tier 2 Capital 2,492.13 2,085.39 2,380.99 2,015.68
Less: Investment in Subsidiary-50% (120.51) (102.14) (768.26) (822.72)
Net Tier 2 Capital 2,371.62 1,983.25 1,612.73 1,192.96
Total Gross Qualifying Capital 41,608.01 37,422.19 41,185.49 37,339.59
Less: Total Investment in Subsidiary (241.01) (204.28) (1,536.52) (1,645.45)
Total Qualifying Capital 41,367.00 37,217.91 39,648.97 35,694.14
DISCLOSURE ON CAPITAL STRUCTURE AND CAPITAL ADEQUACY 67
Risk-based capital ratios:
Basel III Consolidated Parent Company

2014
In PhP Million
CET 1 capital 53,105.33 51,967.01
Less regulatory adjustments 5,248.27 7,776.08
Total CET 1 capital 47,857.06 44,190.93
Additional Tier 1 capital - -
Total Tier 1 capital 47,857.06 44,190.93
Tier 2 capital 3,196.08 2,685.86
Total qualifying capital 51,053.14 46,876.79
Risk weighted assets 343,187.87 291,020.64
CET 1 capital ratio 13.95% 15.18%
Tier 1 capital ratio 13.95% 15.18%
Total capital ratio 14.88% 16.11%
The regulatory Basel III qualifying capital of the Group consists of Common Equity Tier 1 capital (going concern capital), which
comprises paid-up common stock, additional paid-in capital, surplus including current year profit, other comprehensive income
and minority interest less required deductions such as unsecured credit accommodations to DOSRI, deferred income tax,
other intangible assets, goodwill, defined benefit pension fund assets/liabilities, and investment in subsidiaries. The other
component of regulatory capital is Tier 2 capital (gone-concern capital), which includes general loan loss provision. A capital
conservation buffer of 2.5% comprised of CET 1 capital is likewise imposed in the Basel III capital ratios.
Basel II Consolidated Parent Company

2013 2012 2013 2012
In PhP Million
Tier 1 capital 39,115.88 35,336.80 38,804.50 35,323.91
Tier 2 capital 2,492.13 2,085.39 2,380.99 2,015.68
Gross qualifying capital 41,608.01 37,422.19 41,185.49 37,339.59
Less required deductions (241.01) (204.28) (1,536.52) (1,645.45)
Total qualifying capital 41,367.00 37,217.91 39,648.97 35,694.14
Risk weighted assets 268,851.16 232,552.93 257,239.52 225,145.24
Tier 1 capital ratio 14.50% 15.15% 14.79% 15.32%
Total capital ratio 15.39% 16.00% 15.41% 15.85%
The capital requirements for Credit, Market and Operational Risk are listed below, on a parent and consolidated basis:
Capital Requirement Consolidated Parent

in PhP Million 2014 2013 2012 2014 2013 2012
Credit Risk 31,950.78 24,472.70 20,487.93 26,835.85 23,360.48 19,787.83
Market Risk 265.52 372.44 693.30 238.88 372.44 693.30
Operational Risk 2,102.49 2,039.97 2,074.06 2,027.33 1,991.02 2,033.40
Total Capital Requirements 34,318.79 26,885.12 23,255.29 29,102.06 25,723.95 22,514.53
Credit Risk
On-balance sheet exposures, net of specific provisions and not covered by CRM (in PhP million):
December 2014
Consolidated Parent
On-Balance Sheet Assets Exposures, net of Exposures not Exposures, net of Exposures not
Specific Provisions Covered by CRM Specific Provisions Covered by CRM
Cash on Hand 10,707.42 10,707.42 9,267.54 9,267.54
Checks and Other Cash Items 119.20 119.20 111.71 111.71
Due from BSP 67,207.59 67,207.59 60,285.41 60,285.41
Due from Other Banks 17,553.19 17,553.19 15,836.70 15,836.70
Financial Assets at FVPL 3,927.24 3,918.50 3,927.24 3,918.50
Available-for-Sale Financial Assets 38,551.58 37,678.28 37,439.35 36,566.05
Held-to-Maturity Financial Assets 12,382.49 12,382.49 11,615.19 11,615.19
Unquoted Debt Securities Classified as Loans 1,367.14 1,367.14 1,021.59 1,021.59
Loans and Receivables 292,638.78 275,390.26 247,720.38 234,820.38
Loans and Receivables arising from Repurchase
- - - -
Agreements
Sales Contract Receivables 1,229.79 1,229.79 342.55 342.55
Real and Other Properties Acquired 3,361.29 3,361.29 987.59 987.59
Other Assets 12,377.92 12,377.92 7,052.65 7,052.65
Total On-Balance Sheet Assets 461,423.62 443,293.07 395,607.91 381,825.88
December 2013
Consolidated Parent
On-Balance Sheet Assets
Exposures, net of Exposures not Exposures, net of Exposures not
Cash on Hand 7,217.74 7,217.74 6,973.57 6,973.57
Due from BSP 78,880.88 78,880.88 75,591.06 75,591.06
- - - -
Agreements
Sales Contract Receivables 462.81 462.81 392.30 392.30
Real and Other Properties Acquired 1,756.14 1,756.14 1,430.59 1,430.59
Other Assets 8,704.83 8,704.83 7,120.25 7,120.25
December 2012
Consolidated Parent
On-Balance Sheet Assets Exposures, net of Exposures not Exposures, net of Exposures not
Cash on Hand 6,055.42 6,055.42 5,902.60 5,902.60
Due from BSP 40,634.87 40,634.87 37,572.60 37,572.60
446.00 446.00 - -
Agreements
Sales Contract Receivables 475.53 475.53 378.71 378.71
Real and Other Properties Acquired 2,042.99 2,042.99 1,739.42 1,739.42
Other Assets 9,562.04 9,562.04 8,440.45 8,440.45
Credit equivalent amount for off-balance sheet items, broken down by type of exposures (in PhP million):
2014 2013 2012

Off-balance Sheet Consolidated Parent Consolidated Parent Consolidated Parent
Assets
Notional Credit Notional Credit Notional Credit Notional Credit Notional Credit Notional Credit
Principal Equivalent Principal Equivalent Principal Equivalent Principal Equivalent Principal Equivalent Principal Equivalent
Direct Credit
Substitutes - - - - - - - - - - - -
Transaction-related
contingencies 17,876.53 8,938.26 17,562.68 8,781.34 15,937.73 7,968.86 15,937.35 7,968.68 7,374.39 3,687.20 7,374.39 3,687.20
Trade-related
contingencies
arising from
movement of
goods 8,452.35 1,690.47 5,201.96 1,040.39 4,647.72 929.54 4,647.72 929.54 4,320.16 864.03 4,320.16 864.03
Other commitments
(which can be
unconditionally
cancelled at any
time by the bank
without prior
notice) 126,251.16 - 120,816.41 - 132,250.22 - 128,276.41 - 182,100.31 - 176,713.92 -
Total Notional
Principal and Credit
Equivalent Amount 152,580.04 10,628.74 143,581.05 9,821.73 152,835.67 8,898.40 148,861.48 8,898.22 193,794.86 4,551.23 188,408.47 4,551.23
Credit equivalent amount for counterparty credit risk in the trading book, broken down by type of exposures (in PhP million):
December 2014
Consolidated Parent
Standardized Approach Notional Credit Notional Credit
Principal Equivalent Principal Equivalent
Interest Rate Contracts 4,700.00 31.12 4,700.00 31.12
Exchange Rate Contracts 45,654.80 724.19 45,654.80 724.19
Equity Contracts - - - -
Credit Derivatives - - - -
Total Notional Principal and Credit Equivalent Amount 50,354.80 755.31 50,354.80 755.31
December 2013
Consolidated Parent
Interest Rate Contracts 3,800.00 27.48 3,800.00 27.48
December 2012
Consolidated Parent
Interest Rate Contracts - - - -
Net Exposures after CRM for counterparty credit risk in the banking book, broken down by type of exposures (in PhP million):
December 2014
Consolidated Parent
Standardized Approach Fair Value/ Fair Value/

Net Exposures Net Exposures
Carrying Carrying
after CRM after CRM
Amount Amount
Derivative Transactions - - - -
Repo-Style Transactions 4,664.53 393.49 4,664.53 393.49
Total Fair Value/Carrying Amount and
4,664.53 393.49 4,664.53 393.49
Net Exposures after CRM
The following credit risk mitigants are used in the December 2014 CAR Report:
• ROP warrants
• ROP guarantees
• Holdout vs. Peso deposit / Deposit substitute
• Holdout vs. FCDU deposit of resident
• Holdout vs. FCDU deposit of non-resident
• Assignment / Pledge of Government Securities
Total credit exposure after risk mitigation, broken down by type of exposures, risk buckets, as well as those that are
deducted from capital (in PhP million):
2014
Consolidated Parent Company
Weight Band On-balance Off-balance On-balance Off-balance
sheet sheet Counterparty Total sheet sheet Counterparty Total
Below 100% 180,932.75 723.04 833.06 182,488.84 160,073.15 72.96 833.06 160,979.16
100% and
Above 262,360.32 9,905.70 315.73 272,581.76 221,752.73 9,748.77 315.73 231,817.24
Total 443,293.07 10,628.74 1,148.79 455,070.60 381,825.88 9,821.73 1,148.79 392,796.40
2013
Weight Band
On-balance Off-balance On-balance Off-balance
Counterparty Total Counterparty Total
sheet sheet sheet sheet
Below 100% 203,364.08 4,398.95 787.22 208,550.25 195,463.38 4,398.95 787.22 200,649.55
100% and
189,548.34 4,499.46 182.99 194,230.79 180,513.04 4,499.28 182.99 185,195.31
Above
Total 392,912.42 8,898.41 970.21 402,781.04 375,976.42 8,898.22 970.21 385,844.86
2012
Weight Band
Below 100% 132,296.20 797.51 305.73 133,399.44 127,662.36 797.51 305.73 128,765.59
100% and
168,447.08 3,753.72 317.69 172,518.49 162,111.69 3,753.72 317.69 166,183.10
Above
Total 300,743.28 4,551.23 623.42 305,917.92 289,774.05 4,551.23 623.42 294,948.69
Total credit risk-weighted assets, broken down by type of exposures (in PhP million):
2014
Weight Band
Below 100% 42,493.94 14.59 378.54 42,887.08 34,942.11 14.59 378.54 35,335.24
100% and
265,917.10 9,905.70 315.73 276,138.54 223,072.93 9,748.77 315.73 233,137.44
Above
Covered by
582.00 - - 582.00 113.20 - - 113.20
CRM
Excess GLLP (99.81) (227.33)
Total 308,993.05 9,920.29 694.27 319,507.80 258,128.24 9,763.37 694.27 268,358.55
2013
Weight Band
Below 100% 46,427.54 879.79 298.58 47,605.91 44,616.45 879.79 298.58 45,794.82
100% and
192,912.54 4,499.46 182.99 197,594.99 183,610.36 4,499.28 182.99 188,292.63
Above
Covered by
97.86 - - 97.86 97.86 - - 97.86
CRM
Excess GLLP (571.76) (580.47)
Total 239,437.94 5,379.25 481.57 244,727.00 228,324.67 5,379.07 481.57 233,604.84
2012
Weight Band
Below 100% 26,623.29 159.50 100.24 26,883.03 26,227.09 159.50 100.24 26,486.83
100% and
171,913.47 3,753.72 317.69 175,984.88 165,338.60 3,753.72 317.69 169,410.01
Above
Covered by
2,690.87 - - 2,690.87 2,690.93 - - 2,690.93
CRM
Excess GLLP (679.50) (709.50)
Total 201,227.63 3,913.22 417.93 204,879.28 194,256.62 3,913.22 417.93 197,878.27
The credit ratings given by the following rating agencies were used to determine the credit risk weight of On-balance sheet,
Off-balance sheet, and Counterparty exposures:
For all rated credit exposures regardless of currency

Standard & Poor (S&P)
Moody’s
Fitch
For PHP-denominated debts of rated domestic entities
Philratings
Market Risk-Weighted Assets
The Standardized Approach is used in China Bank’s market risk-weighted assets. The total market risk-weighted asset of the
Bank as of end-December 2014 is P2.39 billion and P2.65 billion for parent company and consolidated basis, respectively. This
is composed of Interest Rate exposures amounting to P1.85 billion and Foreign Exposures amounting to P0.54 billion for the
parent bank, while it is composed of Interest Rate exposures amounting to P2.11 billion and Foreign Exposures amounting to
P0.54 billion on a consolidated basis.
Consolidated Parent Company Consolidated and Parent Company

Interest Rate Exposures (in PhP Million) 2014 2013 2012
Specific Risk 34.06 31.91 35.22 169.61
General Market Risk
PHP 110.64 96.22 116.90 249.15
USD 24.31 19.56 89.24 85.17
Total Capital Charge 169.01 147.69 241.36 503.93
Adjusted Capital Charge 211.26 184.62 301.70 629.92
Subtotal Market Risk-Weighted Assets 2,112.60 1,846.21 3,016.96 6,299.17
Consolidated Parent Company Consolidated and Parent Company

Foreign Exchange Exposures 2014 2013 2012
Total Capital Charge 43.40 43.40 56.60 50.71
Adjusted Capital Charge 54.26 54.26 70.75 63.39
Subtotal Market Risk-Weighted Assets 542.55 542.55 707.48 633.86
Total Market Risk-Weighted Assets 2,655.15 2,388.77 3,724.44 6,933.03
Operational, Legal, and Other Risks
For Operational Risk, the exposure of the Bank is profiled using a number of methodologies which also include a scenario
analysis exercise as part of the internal capital adequacy assessment process (ICAAP) to validate if the computed capital
requirement using the Basic Indicator Approach (BIA) is enough to cover estimated losses arising from very adverse operating
conditions and major incidents. For the 2015 ICAAP submission, the Bank allocated the amount of P2.10 billion as capital
for Operational Risk which is more than adequate to cover the exposure from our scenario analysis exercise. In fact, the BIA
provides a capital buffer of as much as P966 million.
Tools such as the Risks and Controls Self-Assessment (RCSA), the analysis of historical Loss Reports and the monitoring of
Key Risk Indicators (KRI) further allow Risk Management to identify high risk areas, loss drivers, and trends which can be acted
upon by Management to prevent material failures in our processes, people, systems, and resiliency measures against external
events. These results are periodically reported to Management and cover all aspects of the business from core operating
capabilities of the units, all products and services, outstanding legal cases, and even its sales and marketing practices.
Operational Risk-Weighted Assets
The BIA is used to determine the equivalent Operational risk-weighted assets of China Bank. On a parent basis, the Bank’s
Operational risk-weighted assets as of December 2014 is P20.27 billion while on a consolidated basis, the Bank’s Operational
risk-weighted assets is P21.02 billion. On a parent basis, the Bank’s Operational risk-weighted assets as of December 2013 is
P19.91 billion while on a consolidated basis, the Bank’s Operational risk-weighted assets is P20.40 billion. On a parent basis,
the Bank’s Operational risk-weighted assets as of December 2012 is P20.33 billion while on a consolidated basis, the Bank’s
Operational risk-weighted assets is P20.74 billion.
Internal measurement of interest rate risk in the banking book
The Bank’s interest rate risk (IRR) originates from its holdings of interest rate sensitive assets and interest rate sensitive
liabilities. Internally, the Earnings-at-Risk (EaR) method is used to determine the effects of adverse interest rate change on
the Bank’s interest earnings. The Bank’s loans is assumed affected by interest rate movements on its repricing date for
floating rates and on its maturity for fixed rates. Demand and savings deposits, on the other hand, is generally not interest rate
sensitive. Provided in the table below are the approximate reduction in annualized interest income of a 100bps adverse change
across the PhP and USD yield curves.
Earnings-at-Risk Consolidated Parent Company

in PhP Million 2014 2013 2012 2014 2013 2012
PhP IRR Exposures (901) (401) (355) (734) (432) (358)
USD IRR Exposures (50) (219) (122) (51) (216) (117)
REPORT OF AUDIT COMMITTEE TO THE BOARD OF DIRECTORS

FOR THE YEAR ENDED DECEMBER 31, 2014
The Audit Committee is a committee of the Board composed of three (3) non-executive directors, two (2) of whom are independent
directors including the Chairman. The Committee is primarily responsible for providing oversight on all matters pertaining to audit,
such as the Bank’s financial reporting and control, selection and appointment of Chief Audit Executive and external auditors, review
of the effectiveness of the internal and external audit functions, assessment of the performance of the Committee and its members,
and risk management activities. The terms of reference of the Committee are available in the Bank’s website, www.chinabank.ph,
under Corporate Governance – Governance at China Bank – Board Matters section.
The Committee met 12 times during the year ended December 31, 2014. In line with its charter, relevant laws and regulations, and
international standards, the Committee confirms the conduct of the following business for the covered period:
■ Discussed the results of the internal assessment of the Bank’s internal audit activities, reviewed and established the effectiveness
of internal audit function and the Chief Audit Executive, including their accomplishments versus plans and budget, and the
compliance by the internal auditors with the Institute of Internal Auditors‘ International Standards for the Professional Practice of
Internal Auditing (IIA-ISPPIA) and Code of Ethics on independence and objectivity.
■ Reviewed and approved the Revised Audit Manual, containing internal audit’s general framework, and the audit process and
methodology of its various departments, which outlines the procedures to be followed in every audit engagement, after confirming
its adherence to IIA-ISPPIA; and, discussed the proposal for external quality assessment review.
■ Considered the regular and special internal audit reports on and replies of various branches and units of the Bank; reviewed IT-
related and other audit projects of the Bank; discussed the summary of common observations and changes in audit ratings of
reviewed branches; took note of updates on operations and behavioral cases; and monitored on a quarterly basis the status of
outstanding audit issues including the remedial actions being taken.
■ Recommended to the Board, the re-election/re-appointment of SyCip Gorres Velayo & Co. (SGV & Co.) / Ernst & Young as the
Bank’s external auditor, after review of their qualifications, performance, competence and independence; discussed and agreed
with external auditors the terms of the engagement letter prior to approval; and approved their fees in relation to the scope of
duties.
■ Discussed the external auditor’s annual audit plan, reviewed the results of audit of the consolidated financial statements of the
Bank and subsidiaries, reviewed the Management Representation Letter provided to the external auditor, and endorsed the audited
financial statements, after determining that they present fairly, in all material respects, the financial position of the Group and of
the parent bank.
■ Discussed with the internal and external auditors the new issuances by the Bureau of Internal Revenue, Securities and Exchange
Commission (SEC), and/or Bangko Sentral ng Pilipinas (BSP), and their significance to the operations of the Bank.
■ In the exercise of its full discretion, invited officers of the Bank, external auditors, and other guests to attend meetings of the
Committee, without the presence of management, to enable the Committee to effectively discharge its functions by obtaining
feedback, independently evaluating the issues, and arriving at resolutions and recommendations.
■ Conducted self-assessment of the performance effectiveness of the Committee and its members, consistent with the guidelines
of the SEC and global standards and practices.
■ Informed the Board of Directors on a regular basis, of the matters taken up during Committee meetings.
Based on the continuing review and monitoring by the Audit Committee of the adequacy and effectiveness of the internal control
system of the Bank, and its evaluation of management‘s activities in managing various risks material to the operations of the Bank, the
Committee affirms that the Bank’s internal control and risk management systems are adequate and functioning effectively.
Finally, subject to the limitations on duties and responsibilities in its Charter, the Committee recommends to the Board of Directors
that the audited financial statements and related schedules be approved, included and/or incorporated in the Annual Report for the year
ended December 31, 2014.
Makati City, February 25, 2015.
ALBERTO S. YAO JOAQUIN T. DEE DY TIONG

Chairman Member Member
FINANCIAL STATEMENTS 75
STATEMENT OF MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL STATEMENTS
The Management of China Banking Corporation (the Bank) is responsible for the preparation and fair presentation of the
consolidated financial statements for the years ended December 31, 2014 and 2013, including the additional components
attached therein, in accordance with Philippine Financial Reporting Standards. This responsibility includes designing and
implementing internal controls, relevant to the preparation and fair presentation of the consolidated financial statements that
are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies, and
making accounting estimates that are reasonable in the circumstances.
The Board of Directors reviews and approves the consolidated financial statements and submits the same to the stockholders.
SyCip Gorres Velayo & Co., the independent auditors appointed by the stockholders, has examined the consolidated financial
statements of the Bank in accordance with Philippine Standards on Auditing, and in its report to the stockholders, has expressed
its opinion on the fairness of presentation upon completion of such examination.
Hans T. Sy Ricardo R. Chua

Chairman of the Board President & CEO
Antonio S. Espedido, Jr. Delia Marquez

Executive Vice President and Principal Financial Officer Vice President - Controller
} S. S.
Republic of the Philippines
City of Makati
Signed this 6th day of March 2015, affiants exhibiting to me their Social Security System Nos. as follows:
Name SSS Nos.

Hans T. Sy 03-4301174-3
Ricardo R. Chua 03-2416389-8
Antonio S. Espedido, Jr. 03-5696688-5
Delia Marquez 03-7205726-0
BELENETTE Y. CHING-TAN
Notary Public for the City of Makati
Appt. No. M-236 until December 31, 2015
4/F Philcom Building,
Doc. No.: 339 8755 Paseo de Roxas, Makati City
Page No.: 70 PTR No. 4748649; 01.05.15; Makati City
Book No.: 89 IBP No. 934832; 12.12.13; Makati City
Series of: 2015 Roll of Attorney’s No. 37110
INDEPENDENT AUDITORS’ REPORT
The Stockholders and the Board of Directors

China Banking Corporation
Makati City
Report on the Financial Statements
We have audited the accompanying consolidated financial statements of China Banking Corporation and Subsidiaries (the Group) and the parent
company financial statements of China Banking Corporation (the Parent Company), which comprise the consolidated and parent company balance
sheets as at December 31, 2014 and 2013, and the consolidated and parent company 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, 2014, and
a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with Philippine Financial
Reporting Standards, 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.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with
Philippine Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair
presentation of the financial statements 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 entity’s internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated and the parent company financial statements present fairly, in all material respects, the financial position of the
Group and of the Parent Company as at December 31, 2014 and 2013, and their financial performance and their cash flows for each of the three
years in the period ended December 31, 2014 in accordance with Philippine Financial Reporting Standards.
Report on the Supplementary Information Required Under Revenue Regulations 15-2010 and 19-2011
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary
information required under Revenue Regulation 15-2010 in Note 36 to the financial statements is presented for purposes of filing with the Bureau
of Internal Revenue and is not a required part of the basic financial statements. Such information is the responsibility of the management of
China Banking Corporation. The information has been subjected to the auditing procedures applied in our audit of the basic financial statements.
In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
SYCIP GORRES VELAYO & CO.
Vicky Lee Salas

Partner
CPA Certificate No. 86838
SEC Accreditation No. 0115-AR-3 (Group A),
February 14, 2013, valid until February 13, 2016
Tax Identification No. 129-434-735
BIR Accreditation No. 08-001998-53-2012,
April 11, 2012, valid until April 10, 2015
PTR No. 4751290, January 5, 2015, Makati City
March 4, 2015
BALANCE SHEETS

December 31
2014 2013 2014 2013
ASSETS
Cash and Other Cash Items P10,734,059,421 P7,281,640,616 P9,295,129,845 P7,035,251,105
Due from Bangko Sentral ng Pilipinas (Notes 7 and 16 ) 67,451,647,883 78,968,132,522 60,543,866,682 75,678,312,048
Due from Other Banks (Note 7) 17,552,823,222 23,885,538,128 15,836,701,053 23,215,575,357
Interbank Loans Receivables 223,600,000 – 223,600,000 –
Financial Assets at Fair Value through Profit or Loss (Note 8) 8,440,698,688 10,421,423,053 8,012,435,288 10,421,423,053
Available-for-Sale Financial Assets (Note 8) 38,476,852,312 44,349,256,775 37,075,237,960 43,196,190,593
Held-to-Maturity Financial Assets (Note 8) 12,109,343,604 12,150,546,829 11,353,787,827 12,122,589,213
Loans and Receivables (Notes 9 and 28) 290,418,729,517 220,540,902,915 245,257,220,870 210,762,269,411
Accrued Interest Receivable (Note 15) 2,236,980,535 1,899,408,789 1,910,677,425 1,801,594,853
Investment in Subsidiaries (Note 10) – – 6,016,949,825 1,927,749,787
Investment in Associates (Note 10) 534,881,164 21,245,838 166,273,454 21,245,838
Bank Premises, Furniture, Fixtures and Equipment (Note 11) 6,250,652,990 5,279,940,404 4,748,198,638 4,725,647,705
Investment Properties (Note 12) 5,766,821,914 2,410,529,492 1,901,362,829 2,078,092,008
Deferred Tax Assets (Note 26) 848,686,105 627,795,898 842,366,600 763,461,954
Branch Licenses (Notes 10 and 13) 2,427,100,000 837,600,000 455,000,000 455,000,000
Goodwill (Notes 10 and 13) 1,491,639,289 222,841,201 222,841,201 222,841,201
Other Assets (Note 14) 5,975,480,023 4,801,120,536 3,639,729,318 4,398,466,854
P470,939,996,667 P413,697,922,996 P407,501,378,815 P398,825,710,980
LIABILITIES AND EQUITY

Liabilities
Deposit Liabilities (Notes 16 and 28)
Demand P97,703,743,693 P76,735,905,420 P88,942,590,615 P75,632,975,179
Savings 95,526,360,293 78,988,121,055 86,798,097,735 68,895,602,645
Time 206,071,440,072 198,544,176,205 165,343,945,862 195,303,275,663
399,301,544,058 354,268,202,680 341,084,634,212 339,831,853,487
Bills Payable (Note 17) 6,320,579,549 8,299,194,525 5,177,600,839 8,299,194,525
Manager’s Checks 1,221,394,875 859,892,248 822,179,038 704,488,259
Income Tax Payable 10,943,813 6,768,350 1,396,937 −
Accrued Interest and Other Expenses (Note 18) 1,630,748,489 1,501,925,478 1,312,475,404 1,445,621,346
Derivative Liabilities (Note 24) 101,609,941 154,808,366 101,609,941 154,808,366
Deferred Tax Liabilities (Note 26) 962,555,706 − − −
Subordinated Debt (Note 17) 1,188,761,984 − − −
Other Liabilities (Note 19) 3,635,809,137 3,207,431,910 2,182,918,508 2,816,377,585
414,373,947,552 368,298,223,557 350,682,814,879 353,252,343,568
Equity
Equity Attributable to Equity Holders of the Parent Company
Capital stock (Note 22) 17,164,143,170 14,276,616,580 17,164,143,170 14,276,616,580
Capital paid in excess of par value (Note 22) 6,987,564,304 671,504,726 6,987,564,304 671,504,726
Surplus reserves (Notes 22 and 27) 800,005,924 775,068,774 800,005,924 775,068,774
Surplus (Notes 22 and 27) 31,310,602,555 29,079,842,263 31,489,977,481 29,261,041,727
Net unrealized gains (losses) on available-for-sale financial assets
(Note 8) 122,920,333 (79,257,616) 114,499,317 (73,855,091)
Remeasurement gain on defined benefit asset or liability (Note 23) 199,151,231 604,715,114 283,740,633 596,643,032
Cumulative translation adjustment (20,391,728) 66,347,664 (21,366,893) 66,347,664
56,563,995,789 45,394,837,505 56,818,563,936 45,573,367,412
Non-controlling Interest 2,053,326 4,861,934 – –
56,566,049,115 45,399,699,439 56,818,563,936 45,573,367,412
P470,939,996,667 P413,697,922,996 P407,501,378,815 P398,825,710,980
See accompanying Notes to Financial Statements.

STATEMENTS OF INCOME

Years Ended December 31
2014 2013 2012 2014 2013 2012
INTEREST INCOME
Loans and receivables (Notes 9 and 28) P14,674,211,129 P10,372,075,442 P9,522,024,446 P11,295,416,007 P9,729,506,391 P9,245,295,416
Trading and investments (Note 8) 3,021,786,168 3,227,341,138 3,373,834,036 2,872,123,892 3,158,295,958 3,297,564,886
Due from Bangko Sentral ng Pilipinas and other
banks (Note 7) 701,141,844 481,736,900 255,011,199 465,089,374 408,149,958 188,552,690
18,397,139,141 14,081,153,480 13,150,869,681 14,632,629,273 13,295,952,307 12,731,412,992
INTEREST EXPENSE
Deposit liabilities (Notes 16 and 28) 4,016,718,063 4,047,245,174 4,963,125,873 2,904,698,563 3,737,550,341 4,730,727,574
Bills payable and other borrowings
(Note 17) 291,674,420 97,917,679 125,402,976 141,825,008 97,917,679 125,402,976
4,308,392,483 4,145,162,853 5,088,528,849 3,046,523,571 3,835,468,020 4,856,130,550
NET INTEREST INCOME 14,088,746,658 9,935,990,627 8,062,340,832 11,586,105,702 9,460,484,287 7,875,282,442
Service charges, fees and commissions
(Note 20) 1,561,807,355 1,156,459,862 1,046,352,293 1,220,648,836 1,004,074,075 949,167,096
Trading and securities gain - net (Notes 8 and
20) 535,262,784 1,904,885,163 2,916,299,207 458,895,756 1,614,807,963 2,787,172,905
Gain on sale of investment properties 355,065,312 462,742,999 291,424,782 363,192,439 467,216,863 291,630,417
Foreign exchange gain (loss) - net (Note 24) 329,943,826 (89,663,242) 259,100,974 335,847,539 (96,189,849) 260,605,044
Trust fee income (Note 28) 251,489,056 420,721,273 555,954,835 249,371,499 416,286,552 552,576,294
Gain on asset foreclosure and dacion
transactions (Note 12) 138,556,699 219,470,577 50,538,556 82,305,633 191,126,297 51,837,658
Miscellaneous (Notes 10, 12, 20 and 28) 1,587,151,376 1,085,974,887 673,944,104 1,017,928,252 1,082,832,730 499,813,658
TOTAL OPERATING INCOME 18,848,023,066 15,096,582,146 13,855,955,583 15,314,295,656 14,140,638,918 13,268,085,514
Compensation and fringe benefits
(Notes 23 and 28) 4,170,574,035 3,112,588,968 2,850,571,322 3,030,719,194 2,762,462,214 2,604,402,428
Occupancy cost (Notes 25 and 28) 1,669,407,618 1,229,979,549 1,065,386,034 1,206,551,379 1,059,665,123 949,205,463
Taxes and licenses 1,055,714,221 828,261,895 819,755,015 836,880,795 751,875,186 784,434,373
Depreciation and amortization
(Notes 11 and 12) 923,199,525 752,886,033 825,295,807 630,577,477 595,746,442 620,913,478
Insurance 898,228,338 690,029,507 568,346,857 751,524,902 664,178,791 555,981,693
Stationery, supplies and postage 876,929,620 699,570,330 605,316,347 718,926,591 681,351,714 598,933,969
Provision for impairment and credit losses
(Note 15) 440,901,390 414,335,872 236,756,182 100,920,462 278,540,863 200,181,569
Transportation and traveling 371,653,065 344,079,528 316,530,142 285,041,941 321,264,135 292,606,142
Entertainment, amusement and recreation 323,536,811 221,735,895 206,536,313 207,047,616 190,673,800 188,736,887
Professional fees, marketing and other related
services 229,015,410 174,074,631 165,064,472 165,534,110 157,803,302 143,382,546
Repairs and maintenance 188,588,774 164,317,392 166,580,997 131,855,092 162,285,099 168,287,583
Miscellaneous (Notes 20 and 28) 1,021,797,770 689,738,609 604,517,780 725,311,515 680,378,003 611,515,823
TOTAL OPERATING EXPENSES 12,169,546,577 9,321,598,209 8,430,657,268 8,790,891,074 8,306,224,672 7,718,581,954
INCOME BEFORE INCOME TAX 6,678,476,489 5,774,983,937 5,425,298,315 6,523,404,582 5,834,414,246 5,549,503,560
PROVISION FOR INCOME TAX (Note 26) 1,564,927,273 674,536,437 422,288,616 1,408,832,332 649,928,260 412,557,140
NET INCOME P5,113,549,216 P5,100,447,500 P5,003,009,699 P5,114,572,250 P5,184,485,986 P5,136,946,420
Attributable to:
Equity holders of the Parent Company
(Note 31) P5,116,396,788 P5,103,258,492 P5,018,197,140
Non-controlling interest (2,847,572) (2,810,992) (15,187,441)
P5,113,549,216 P5,100,447,500 P5,003,009,699
Basic/Diluted Earnings Per Share (Note 31) P3.08 P3.27* P3.22*
* Restated to show the effects of stock dividends distributed in 2014 (Note 22).
STATEMENTS OF COMPREHENSIVE INCOME

Years Ended December 31
2014 2013 2012 2014 2013 2012
NET INCOME P5,113,549,216 P5,100,447,500 P5,003,009,699 P5,114,572,250 P5,184,485,986 P5,136,946,420
OTHER COMPREHENSIVE INCOME (LOSS)

Items that recycle to profit or loss in
subsequent periods:
Changes in fair value of available-for-
sale financial assets:
Fair value gain for the year, net of tax 746,546,547 565,027,367 2,177,977,312 730,007,192 297,493,719 2,057,470,675
Gains taken to profit or loss (Note 20) (544,094,215) (2,006,391,602) (2,701,942,417) (541,652,784) (1,716,314,402) (2,572,816,115)
Cumulative translation adjustment (86,686,308) 131,858,279 (90,847,759) (87,714,557) 131,858,279 (90,847,759)
Items that do not recycle to profit or loss in
subsequent periods:
Remeasurement gain (loss) on defined
benefit asset or liability, net of tax (405,852,386) 428,205,189 145,327,978 (312,902,399) 400,214,074 157,954,224
OTHER COMPREHENSIVE LOSS FOR THE

YEAR, NET OF TAX (290,086,362) (881,300,767) (469,484,886) (212,262,548) (886,748,330) (448,238,975)
TOTAL COMPREHENSIVE INCOME FOR THE

YEAR P4,823,462,854 P4,219,146,733 P4,533,524,813 P4,902,309,702 P4,297,737,656 P4,688,707,445
Total comprehensive income attributable to:

Equity holders of the Parent Company P4,826,271,462 P4,222,468,955 P4,548,561,308
Non-controlling interest (2,808,608) (3,322,222) (15,036,495)
P4,823,462,854 P4,219,146,733 P4,533,524,813

STATEMENTS OF CHANGES IN EQUITY
Capital Paid in
Excess of Surplus
Capital Stock Par Value Reserves Surplus
(Note 22) (Note 22) (Notes 22 and 27) (Notes 22 and 27)
Balance at January 1, 2014 P14,276,616,580 P671,504,726 P775,068,774 P29,079,842,263
Total comprehensive income for the year − − − 5,116,396,788
Transfer from surplus to surplus reserves − − 24,937,150 (24,937,150)
Issuance of common shares (P49.50 per share) 1,616,098,780 6,383,590,181 − −
Transaction costs on the issuance of common shares − (67,530,603) − −
Stock dividends - 8.00% 1,271,427,810 − − (1,271,427,810)
Cash dividends - P1.00 per share − − − (1,589,271,536)
Balance at December 31, 2014 P17,164,143,170 P6,987,564,304 P800,005,924 P31,310,602,555

Total comprehensive income for the year − − − 5,103,258,492
Additional acquisition of non-controlling interest − − − −
Transfer from surplus to surplus reserves − − 41,628,655 (41,628,655)
Stock dividends - 10.00% 1,297,874,280 – – (1,297,874,280)
Cash dividends - P1.20 per share – – – (1,557,449,076)
Balance at December 31, 2013 P14,276,616,580 P671,504,726 P775,068,774 P29,079,842,263

Total comprehensive income for the year – – – 5,018,197,140
Share of non-controlling interest in Unity Bank’s net assets – – – –
Additional acquisition of non-controlling interest – – – –
Transfer from surplus to surplus reserves – – 55,257,629 (55,257,629)
Stock dividends - 10.00% 1,179,975,500 – – (1,179,975,500)
Cash dividends - P1.20 per share – – – (1,415,852,016)
Balance at December 31, 2012 P12,978,742,300 P671,504,726 P733,440,119 P26,873,535,782
Capital Paid in
Excess of Surplus
Capital Stock Par Value Reserves
(Note 22) (Note 22) (Notes 22 and 27)
Balance at January 1, 2014 P14,276,616,580 P671,504,726 P775,068,774
Total comprehensive income for the year – – –
Transfer from surplus to surplus reserves – – 24,937,150
Issuance of common shares (P49.50 per share) 1,616,098,780 6,383,590,181 −
Transaction costs on the issuance of common shares − (67,530,603) −
Stock dividends - 8.00% 1,271,427,810 – –
Cash dividends - P1.00 per share – – –
Balance at December 31, 2014 P17,164,143,170 P6,987,564,304 P800,005,924

Stock dividends - 10.00% 1,297,874,280 – –
Balance at December 31, 2013 P14,276,616,580 P671,504,726 P775,068,774

Stock dividends - 10.00% 1,179,975,500 – –
Balance at December 31, 2012 P12,978,742,300 P671,504,726 P733,440,119

Consolidated
Equity Attributable to Equity Holders of the Parent Company
Net Unrealized Remeasurement
Gains/(Losses) Gain on Defined
on Available-for- Benefit Asset or Cumulative Non-controlling
Sale Financial Liability Translation Interest
Assets (Note 8) (Note 23) Adjustment Total (Note 10) Total Equity
(P79,257,616) P604,715,114 P66,347,664 P45,394,837,505 P4,861,934 P45,399,699,439
202,177,949 (405,563,883) (86,739,392) 4,826,271,462 (2,808,608) 4,823,462,854
− − − − − −
– – – 7,999,688,961 − 7,999,688,961
– – – (67,530,603) − (67,530,603)
– – – − − −
– – – (1,589,271,536) − (1,589,271,536)
P122,920,333 P199,151,231 (P20,391,728) P56,563,995,789 P2,053,326 P56,566,049,115
P1,360,625,140 P177,480,174 (P65,510,615) P42,729,817,626 P8,387,430 P42,738,205,056

(1,439,882,756) 427,234,940 131,858,279 4,222,468,955 (3,322,222) 4,219,146,733
− − − − (203,274) (203,274)
– – – – − −
– – – – − −
– – – (1,557,449,076) − (1,557,449,076)
(P79,257,616) P604,715,114 P66,347,664 P45,394,837,505 P4,861,934 P45,399,699,439
P1,885,084,757 P31,808,630 25,337,144 39,597,108,334 P24,689,616 P39,621,797,950

(524,459,617) 145,671,544 (P90,847,759) P4,548,561,308 (15,036,495) 4,533,524,813
– – – – 99,952 99,952
– – – – (1,365,643) (1,365,643)
– – – – – –
– – – – – –
– – – (1,415,852,016) – (1,415,852,016)
P1,360,625,140 P177,480,174 (P65,510,615) P42,729,817,626 P8,387,430 P42,738,205,056
Parent Company
Net Unrealized
Gains/(Losses) on Remeasurement
Available-for- Gain on Defined Cumulative
Surplus Sale Financial Benefit Asset or Translation
(Notes 22 and 27) Assets (Note 8) Liability (Note 23) Adjustment Total Equity
P29,261,041,727 (P73,855,091) P596,643,032 P66,347,664 P45,573,367,412
5,114,572,250 188,354,408 (312,902,399) (87,714,557) 4,902,309,702
(24,937,150) – – – –
− – – – 7,999,688,961
− – – – (67,530,603)
(1,271,427,810) – – – –
(1,589,271,536) – – – (1,589,271,536)
P31,489,977,481 P114,499,317 P283,740,633 (P21,366,893) P56,818,563,936
P26,973,507,752 P1,344,965,592 P196,428,958 (P65,510,615) P42,833,078,832

5,184,485,986 (1,418,820,683) 400,214,074 131,858,279 4,297,737,656
(41,628,655) – – – –
(1,297,874,280) – – – –
(1,557,449,076) – – – (1,557,449,076)
P29,261,041,727 (P73,855,091) P596,643,032 P66,347,664 P45,573,367,412
P24,487,646,477 P1,860,311,032 P38,474,734 P25,337,144 P39,560,223,403

5,136,946,420 (515,345,440) 157,954,224 (90,847,759) 4,688,707,445
(55,257,629) – – – –
(1,179,975,500) – – – –
(1,415,852,016) – – – (1,415,852,016)
P26,973,507,752 P1,344,965,592 P196,428,958 (P65,510,615) P42,833,078,832
STATEMENTS OF CASH FLOWS

December 31
2014 2013 2012 2014 2013 2012
CASH FLOWS FROM OPERATING
ACTIVITIES
Income before income tax P6,678,476,489 P5,774,983,937 P5,425,298,315 P6,523,404,582 P5,834,414,246 P5,549,503,560
Adjustments for:
Depreciation and amortization
(Notes 11 and 12) 923,199,525 752,886,033 825,295,807 630,577,477 595,746,442 620,913,478
Trading and securities gain on
available-for-sale financial
assets (Note 20) (544,094,215) (2,006,391,602) (2,701,942,417) (541,652,784) (1,716,314,402) (2,572,816,115)
Provision for impairment and credit
losses (Note 15) 440,901,390 414,335,872 236,756,182 100,920,462 278,540,863 200,181,569
Gain on acquisition of additional
shares of an associate (Note 10) (373,297,479) – – – – –
Gain on sale of investment properties (355,065,312) (462,742,999) (291,424,782) (363,192,439) (467,216,863) (291,630,417)
Gain on bargain purchase (Note 10) – – (165,885,493) – –
Gain on asset foreclosures and
dacion transactions (Note 12) (138,556,699) (219,470,577) (50,538,556) (82,305,633) (191,126,297) (51,837,658)
Gain on sale of investment in
associate (Note 10) (64,556,998) – – – – –
Amortization of transaction costs (61,854,796) – – – – –
Unrealized market valuation loss
(gain) on derivative assets and
liabilities (Note 24) (51,292,115) (877,329,828) 202,790,964 (51,292,115) (877,329,828) 202,790,964
Share in net losses of an associate
(Note 10) 912,243 – – – – –
Changes in operating assets and
liabilities:
Decrease (increase) in the
amounts of:
Financial assets at FVPL 5,793,595,992 2,206,817,562 (9,499,445,508) 2,407,081,455 2,206,817,562 (9,499,445,508)
Loans and receivables (37,385,287,700) (31,031,274,375) (44,314,185,546) (35,121,669,666) (25,818,525,642) (41,675,493,491)
Other assets (2,397,839,406) 192,306,235 72,384,299 (639,819,283) 172,768,019 (140,730,057)
Increase (decrease) in the
amounts of:
Deposit liabilities 463,405,773 82,290,962,810 54,863,508,126 1,252,780,725 76,757,744,130 51,101,255,066
Manager’s checks 189,248,055 58,683,683 314,150,719 117,690,779 (31,600,585) 290,148,203
Accrued interest and other
expenses (304,813,896) (120,307,629) 163,071,186 (133,145,942) (111,216,744) 139,242,414
Other liabilities (199,380,866) 288,882,095 (206,093,129) (778,486,693) 205,798,361 (266,807,347)
Net cash generated from (used in)
operations (27,386,300,015) 57,262,341,217 4,873,740,167 (26,679,109,075) 56,838,499,262 3,605,274,661
Income taxes paid (565,202,082) (495,207,289) (397,890,351) (487,634,327) (477,121,886) (370,560,842)
Net cash provided by (used in) operating
activities (27,951,502,097) 56,767,133,928 4,475,849,816 (27,166,743,402) 56,361,377,376 3,234,713,819
CASH FLOWS FROM INVESTING
ACTIVITIES
Additions to bank premises, furniture,
fixtures and equipment (Note 11) (1,063,903,692) (1,165,241,076) (672,250,956) (895,274,168) (994,536,029) (559,705,134)
Proceeds from disposal of bank
premises, furniture, fixtures and
equipment (Note 11) 304,303,020 10,528,796 173,162,335 325,409,602 3,715,622 34,464,243
Proceeds from sale of investment
properties 1,449,957,931 1,183,655,279 894,822,219 954,912,729 1,138,047,387 903,152,520
Acquisition through business
combination - net of cash
acquired (Note 10) 4,051,917,132 – 285,009,741 – – –
Additions to equity investments
(Note 10) – – – (4,089,200,038) – (401,365,643)
Proceeds from sale of investments in
associates (Note 10) 283,599,000 – – – – –
Purchases of:
Held-to-maturity financial assets (696,782,584) – (919,066,409) – – (919,066,409)
Available-for-sale financial assets (22,893,153,399) (54,203,924,571) (67,188,900,188) (22,211,530,430) (51,487,632,563) (62,145,836,118)
Proceeds from sale/maturity of:
Held-to-maturity financial assets 804,157,154 542,686,584 1,214,677,836 768,801,386 542,736,566 1,131,497,835
Available-for-sale financial assets 29,570,639,838 51,992,306,306 73,472,915,046 29,062,490,255 49,266,834,500 68,186,241,260
Net cash provided by (used in) investing
activities 11,810,734,400 (1,639,988,682) 7,260,369,624 3,915,609,336 (1,530,834,517) 6,229,382,554
(Forward)

December 31
2014 2013 2012 2014 2013 2012
CASH FLOWS FROM FINANCING
ACTIVITIES
Payments of bills payable (P8,480,028,188) (P44,688,753,580) (P4,190,278,412) (P7,456,841,342) (P44,688,753,580) (P4,190,278,412)
Availments of bills payable 4,629,728,323 49,461,140,132 6,075,613,038 4,335,247,656 49,461,140,132 6,075,613,038
Payment of subordinated debt (Note 17) (525,000,000) – – – – –
Proceeds from issuance of common 7,932,158,358
shares (Note 22) – – 7,932,158,358 – –
Payments of cash dividends (Note 22) (1,589,271,536) (1,557,449,076) (1,415,852,016) (1,589,271,536) (1,557,449,076) (1,415,852,016)
Acquisitions of non-controlling interest
(Note 10) – (203,274) (1,365,643) – (203,274) –
Payment of subscription payable – – – – – (252,464,431)
Net cash provided by financing activities 1,967,586,957 3,214,734,202 468,116,967 3,221,293,136 3,214,734,202 217,018,179
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (14,173,180,740) 58,341,879,448 12,204,336,407 (20,029,840,930) 58,045,277,061 9,681,114,552
CASH AND CASH EQUIVALENTS AT
BEGINNING OF YEAR
Cash and other cash items 7,281,640,616 6,160,371,861 6,050,366,433 7,035,251,105 5,996,785,687 5,902,040,106
Due from Bangko Sentral ng Pilipinas 78,968,132,522 40,659,682,959 30,122,324,047 75,678,312,048 37,597,455,540 29,571,232,355
Due from other banks 23,885,538,128 4,527,376,998 2,745,404,931 23,215,575,357 4,289,620,222 2,729,474,436
Securities purchased under resale
agreements – 446,000,000 671,000,000 − − –
110,135,311,266 51,793,431,818 39,589,095,411 105,929,138,510 47,883,861,449 38,202,746,897
CASH AND CASH EQUIVALENTS AT
END OF YEAR
Cash and other cash items 10,734,059,421 7,281,640,616 6,160,371,861 9,295,129,845 7,035,251,105 5,996,785,687
Due from Bangko Sentral ng Pilipinas 67,451,647,883 78,968,132,522 40,659,682,959 60,543,866,682 75,678,312,048 37,597,455,540
Due from other banks 17,552,823,222 23,885,538,128 4,527,376,998 15,836,701,053 23,215,575,357 4,289,620,222
Interbank loans receivable 223,600,000 – 446,000,000 223,600,000 – –
P95,962,130,526 P110,135,311,266 P51,793,431,818 P85,899,297,580 P105,929,138,510 P47,883,861,449
OPERATING CASH FLOWS FROM INTEREST

December 31
2014 2013 2012 2014 2013 2012
Interest paid P4,304,419,584 P4,314,899,682 P4,923,244,739 P3,159,848,440 P4,007,533,566 P4,704,185,908
Interest received 18,059,567,395 14,016,511,091 13,087,624,009 14,523,546,701 13,283,813,369 12,679,491,185

NOTES TO FINANCIAL STATEMENTS
1. CORPORATE INFORMATION
China Banking Corporation (the Parent Company) is a publicly listed commercial bank incorporated in the Philippines. The Parent Company
acquired its universal banking license in 1991. It provides expanded commercial banking products and services such as deposit products,
loans and trade finance, domestic and foreign fund transfers, treasury products, trust products, foreign exchange, corporate finance and
other investment banking services through a network of 314 and 295 local branches as of December 31, 2014 and 2013, respectively.
The Parent Company has the following subsidiaries:
Effective Percentages of
Ownership Country of
Subsidiary 2014 2013 Incorporation Principal Activities
Chinabank Insurance Brokers, Inc. (CIBI) 100.00% 100.00% Philippines Insurance brokerage
CBC Properties and Computer Center, Inc. 100.00% 100.00% Philippines Computer services
(CBC-PCCI)
CBC Forex Corporation* 100.00% 100.00% Philippines Foreign exchange
China Bank Savings, Inc. (CBSI) 98.00% 95.25% Philippines Retail and consumer banking
Unity Bank, A Rural Bank, Inc. (Unity Bank)** – 99.95% Philippines Rural banking
Planters Development Bank (PDB) 99.85% – Philippines Retail and consumer banking
* In the process of liquidation and awaiting clearance from regulatory bodies to effect dissolution
** Merged with CBSI on January 20, 2014 (Note 10)
The Parent Company has no ultimate parent company. SM Investments Corporation, its significant investor, has effective ownership in the
Parent Company of 20.01% and 19.54% as of December 31, 2014 and 2013, respectively.
The Parent Company’s principal place of business is at 8745 Paseo de Roxas cor. Villar St., Makati City.
On April 2, 2014, the Board of Directors (BOD) of the Parent Company approved the amendments of the Articles of Incorporation and
the By-Laws to (a) specify the complete principal address of the Parent Company, in compliance with the directives of the Securities and
Exchange Commission (SEC) and (b) to revise the limits of Filipino and foreign shareholdings, in order to align foreign ownership limit with
those of other publicly-listed banks, consistent with the provisions under Section 11 of the General Banking Law of 2000 (Republic Act No.
8791) and Section X126 of the Manual of Regulations for Banks. The BOD of the Parent Company also approved the amendment of the
articles of incorporation to allow the waiver of pre-emptive rights of stockholders, in order to conform to the general practice of Philippine
banks. The foregoing amendments were ratified by the stockholders on May 8, 2014. These were subsequently approved by the Bangko
Sentral ng Pilipinas (BSP) and the SEC on August 7, 2014 and August 29, 2014, respectively.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation
The accompanying consolidated financial statements include the financial statements of the Parent Company and its subsidiaries (collectively
referred to as “the Group”).
The accompanying financial statements have been prepared on a historical cost basis except for financial assets at fair value through profit
or loss (FVPL), available-for-sale (AFS) financial assets, and derivative financial instruments that have been measured at fair value. The
financial statements are presented in Philippine peso, and all values are rounded to the nearest peso except when otherwise indicated.
The financial statements of the Parent Company reflect the accounts maintained in the Regular Banking Unit (RBU) and Foreign Currency
Deposit Unit (FCDU). The financial statements of these units are combined after eliminating inter-unit accounts.
Statement of Compliance
The financial statements of the Group and the Parent Company have been prepared in compliance with Philippine Financial Reporting
Standards (PFRS).
Presentation of Financial Statements

The Group and the Parent Company present its balance sheets in order of liquidity. An analysis regarding recovery of assets or settlement
of liabilities within 12 months after the reporting date (current) and more than 12 months after the reporting date (non-current) is presented
in Note 21.
Financial assets and financial liabilities are offset and the net amount reported in the balance sheets only when there is a legally enforceable
right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liability
simultaneously. Income and expenses are not offset in the statement of income unless required or permitted by any accounting standard
or interpretation, and as specifically disclosed in the accounting policies of the Group and the Parent Company.
NOTES TO FINANCIAL STATEMENTS 85
Certain prior year amounts have been reclassified for consistency with the current period presentation. Certain special deposit accounts
were reclassified from savings deposit liabilities to time deposit liabilities due to the deposit product features. The effect of reclassification
as of December 31, 2013 amounted to 128.57 . This reclassification had no effect on the reported results of operations. This change in
classification does not affect previously reported cash flows in the statements of cash flows, and had no effect on the previously reported
statement of income and statement of comprehensive income.
Basis of Consolidation and Investments in Subsidiaries

The consolidated financial statements of the Group are prepared for the same reporting year as the Parent Company, using consistent
accounting policies. All significant intra-group balances, transactions and income and expenses resulting from intra-group transactions are
eliminated in full.
Subsidiaries are consolidated from the date on which control is transferred to the Parent Company.
Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability
to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has:
• power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee)
• exposure, or rights, to variable returns from its involvement with the investee, and
• the ability to use its power over the investee to affect its returns.
When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances
in assessing whether it has power over an investee, including:
• the contractual arrangement with the other vote holders of the investee
• rights arising from other contractual arrangements
• the Group’s voting rights and potential voting rights.
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of
the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when
the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year
are included in the statement of comprehensive income from the date the Group gains control until the date the Group ceases to control the
subsidiary. Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the Group and
to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments
are made to the financial statements of the subsidiary to bring its accounting policies into line with the Group’s accounting policies. All intra-
group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated
in full on consolidation.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Group loses
control over a subsidiary, it:
• Derecognizes the assets (including goodwill) and liabilities of the subsidiary

• Derecognizes the carrying amount of any non-controlling interest
• Derecognizes the related OCI recorded in equity and recycle the same to profit or loss or surplus
• Recognizes the fair value of the consideration received
• Recognizes the fair value of any investment retained
• Recognizes the remaining difference in profit or loss
• Reclassifies the parent’s share of components previously recognized in OCI to profit or loss or retained earnings, as appropriate, as
would be recognized if the Group had directly disposed of the related assets or liabilities
Non-Controlling Interest
Non-controlling interest represents the portion of profit or loss and net assets not owned, directly or indirectly, by the Parent Company.
Non-controlling interest is presented separately in the consolidated statement of income, consolidated statement of comprehensive
income, and within equity in the consolidated balance sheet, separately from parent shareholders’ equity. Any losses applicable to the
non-controlling interest are allocated against the interests of the non-controlling interest even if this results in the non-controlling interest
having a deficit balance.
Changes in Accounting Policies and Disclosures
The accounting policies adopted are consistent with those of the previous financial year except for the following new, amendments and
improvements to PFRS, Philippine Accounting Standards (PAS) and Philippine Interpretation which became effective as of January 1, 2014.
Except as otherwise indicated, these changes in the accounting policies did not have any significant impact on the financial position or
performance of the Group:
New and Amended Standards and Interpretations

• Investment Entities (Amendments to PFRS 10, Consolidated Financial Statements, PFRS 12, Disclosure of Interests in Other Entities,
and PAS 27, Separate Financial Statements)
• PAS 39, Financial Instruments: Recognition and Measurement - Novation of Derivatives and Continuation of Hedge Accounting
(Amendments)
• Philippine Interpretation IFRIC 21, Levies
Annual Improvements to PFRSs (2011-2013 cycle)

• PFRS 1, First-time Adoption of Philippine Financial Reporting Standards - Meaning of ‘Effective PFRSs’
Standards that have been adopted and are deemed to have an impact in the financial statements or the performance of the Group are
described below.
PAS 32, Financial Instruments: Presentation - Offsetting Financial Assets and Financial Liabilities (Amendments)
The amendments clarify the meaning of “currently has a legally enforceable right to set-off” and also clarify the application of the PAS 32
offsetting criteria to settlement system (such as central clearing house systems) which apply gross settlement mechanism that are not
simultaneous. The amendments affect presentation only and have no impact on the Group’s financial position or performance.
PAS 36, Impairment of Assets - Recoverable Amount Disclosures for Non-Financial Assets (Amendments)
These amendments remove the unintended consequences of PFRS 13, Fair Value Measurement, on the disclosures required under PAS
36. In addition, these amendments require disclosure of the recoverable amounts for assets or cash-generating units (CGUs) for which
impairment loss has been recognized or reversed during the period. The amendments affect disclosure only and have no impact on the
Bank’s financial position or performance.

In the 20102012 annual improvements cycle, seven amendments to six standards were issued, which included an amendment to
PFRS 13, Fair Value Measurement. The amendment to PFRS 13 is effective immediately and it clarifies that short-term receivables and
payables with no stated interest rates can be measured at invoice amounts when the effect of discounting is immaterial. The amendment
has no impact on the Group’s financial position or performance as it presents its short-term receivables and payables at carrying value.
Significant Accounting Policies
Foreign Currency Translation

The consolidated financial statements are presented in Philippine peso, which is the Parent Company’s functional currency. Each entity
in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that
functional currency. The functional currency of the Parent Company’s subsidiaries is the Philippine peso.
Transactions and balances

The books of accounts of the RBU are maintained in Philippine peso, the RBU’s functional currency, while those of the FCDU are maintained
in United States (US) dollars (USD), the FCDU’s functional currency. For financial reporting purposes, the foreign currency-denominated
monetary assets and liabilities in the RBU are translated in Philippine peso based on the Philippine Dealing System (PDS) closing rate
prevailing at end of the year, and foreign currency-denominated income and expenses, at the PDS weighted average rate (PDSWAR) for
the year. Foreign exchange differences arising from restatements of foreign currency-denominated assets and liabilities are credited to or
charged against operations in the period in which the rates change. Non-monetary items that are measured in terms of historical cost in
a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair
value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.
FCDU
As at the reporting date, the assets and liabilities of the FCDU are translated into the Parent Company’s presentation currency (the Philippine
Peso) at the PDS closing rate prevailing at the balance sheet date, and its income and expenses are translated at the PDSWAR for the year.
Exchange differences arising on translation are taken directly to the statement of comprehensive income under ‘Cumulative translation
adjustment’.
Fair Value Measurement

The Group measures financial instruments such as financial assets at FVPL and AFS investments at fair value at each balance sheet date.
Also, fair values of financial instruments measured at amortized cost are disclosed in Note 5.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:
• in the principal market for the asset or liability, or

• in the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible to by the Group. The fair value of an asset or a liability is measured
using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their
economic best interest. A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its
highest and best use.
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair
value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value
hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
• Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
• Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly
observable
• Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
For assets and liabilities that are recognized in the financial statements on a recurring basis, the Group determines whether transfers have
occurred between Levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.
Cash and Cash Equivalents

For purposes of reporting cash flows, cash and cash equivalents include cash and other cash items, due from BSP and other banks,
and interbank loans receivable which have original maturities of three months or less from dates of placements and that are subject to
insignificant risk of changes in value.
Financial Instruments - Initial Recognition and Subsequent Measurement

Date of recognition
Purchases or sales of financial assets, except for derivatives, that require delivery of assets within the time frame established by regulation
or convention in the marketplace are recognized on the settlement date. Settlement date accounting refers to (a) the recognition of an asset
on the day it is received by the Group, and (b) the derecognition of an asset and recognition of any gain or loss on disposal on the day that
such asset is delivered by the Group. Any change in fair value of unrecognized financial asset is recognized in the statement of income for
assets classified as financial assets at FVPL, and in equity for assets classified as AFS investments. Derivatives are recognized on a trade
date basis. Deposits, amounts due to banks and customers and loans are recognized when cash is received by the Group or advanced to
the borrowers.
Initial recognition of financial instruments

All financial instruments are initially recognized at fair value. Except for financial assets and financial liabilities at FVPL, the initial measurement
of financial instruments includes transaction costs. The Group classifies its financial assets in the following categories: financial assets
at FVPL, held-to-maturity (HTM) financial assets, AFS financial assets, and loans and receivables while financial liabilities are classified
as financial liabilities at FVPL and financial liabilities carried at amortized cost. The classification depends on the purpose for which the
investments were acquired and whether they are quoted in an active market. Management determines the classification of its investments
at initial recognition and, where allowed and appropriate, re-evaluates such designation at every reporting date.
Financial assets and financial liabilities at FVPL

Financial assets and financial liabilities at FVPL include financial assets and liabilities held for trading purposes, financial assets and financial
liabilities designated upon initial recognition as at FVPL, and derivative instruments.
Financial instruments held for trading

Financial instruments held for trading (HFT) include government debt securities and quoted equity securities purchased and held principally
with the intention of selling them in the near term. These securities are carried at fair value; realized and unrealized gains and losses on
these instruments are recognized as ‘Trading and securities gain - net’ in the statement of income. Interest earned or incurred on financial
instruments held for trading is reported under ‘Interest income’ (for financial assets) and ‘Interest expense’ (for financial liabilities).
Financial instruments designated at FVPL

Financial assets and financial liabilities are designated as at FVPL by management on initial recognition when any of the following criteria
is met:
• the designation eliminates or significantly reduces the inconsistent treatment that would otherwise arise from measuring the assets
or liabilities or recognizing gains or losses on them on a different basis; or
• the assets and liabilities are part of a group of financial assets, financial liabilities or both which are managed and their performance
evaluated on a fair value basis, in accordance with a documented risk management or investment strategy; or
• the financial instrument contains an embedded derivative, unless the embedded derivative does not significantly modify the cash
flows or it is clear, with little or no analysis, that it would not be separately recorded.
Financial assets and financial liabilities at FVPL are recorded in the balance sheet at fair value. Changes in fair value are recognized in ‘Trading
and securities gain - net’ in the statement of income. Interest earned or incurred is recorded in ‘Interest income’ or ‘Interest expense’,
respectively, while dividend income is recorded in ‘Miscellaneous income’ when the right to receive payment has been established.
Derivatives recorded at FVPL

The Parent Company is a party to derivative instruments, particularly, forward exchange contracts, interest rate swaps (IRS) and warrants.
These contracts are entered into as a service to customers and as a means of reducing and managing the Parent Company’s foreign
exchange risk, and interest rate risk as well as for trading purposes, but are not designated as hedges. Such derivative financial instruments
are stated at fair value through profit or loss.
Any gains or losses arising from changes in fair value of derivative instruments that do not qualify for hedge accounting are taken
directly to the statement of income under ‘ Foreign exchange gain - net’ for forward exchange contracts and ‘Trading and securities
gain-net’ for IRS, warrants and embedded credit derivatives.
Embedded derivatives that are bifurcated from the host financial and non-financial contracts are also accounted for at FVPL.
An embedded derivative is separated from the host contract and accounted for as a derivative if all of the following conditions are
met: a) the economic characteristics and risks of the embedded derivative are not closely related to the economic characteristic of the
host contract; b) a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative;
and c) the hybrid or combined instrument is not recognized at fair value through profit or loss.
The Group assesses whether embedded derivatives are required to be separated from the host contracts when the Group first
becomes a party to the contract. Reassessment of embedded derivatives is only done when there are changes in the contract that
significantly modifies the contractual cash flows that would otherwise be required.
Held-to-maturity financial assets

HTM financial assets are quoted non-derivative financial assets with fixed or determinable payments and fixed maturities for which
the Group’s management has the positive intention and ability to hold to maturity. Where the Group would sell other than an
insignificant amount of HTM financial assets, the entire category would be tainted and reclassified as AFS financial assets.
After initial measurement, these investments are subsequently measured at amortized cost using the effective interest method, less
any impairment in value. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees that
are an integral part of the effective interest rate (EIR). The amortization is included in ‘Interest income’ in the statement of income.
Gains and losses are recognized in income when the HTM financial assets are derecognized and impaired, as well as through the
amortization process. The losses arising from impairment of such investments are recognized in the statement of income under
‘Provision for impairment and credit losses’. The effects of translation of foreign currency-denominated HTM financial assets are
recognized in the statement of income.
Loans and receivable

This accounting policy relates to the balance sheet captions ‘Due from BSP’, ‘Due from other banks’, ‘Interbank loans receivable’,
‘Loans and receivables’, and ‘Accrued interest receivable’. It also applies to accounts receivable and other financial instruments
shown under ‘Other assets’. These are financial assets with fixed or determinable payments that are not quoted in an active market,
other than:
• those that the Group intends to sell immediately or in the near term and those that the Group, upon initial recognition, designates
as FVPL;
• those that the Group, upon initial recognition, designates as AFS; and
• those for which the Group may not cover substantially all of its initial investment, other than because of credit deterioration.
After initial measurement, these are subsequently measured at amortized cost using the effective interest method, less allowance
for impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees and costs that
are an integral part of the EIR. The amortization is included under ‘Interest income’ in the statement of income. The losses arising
from impairment are recognized under ‘Provision for impairment and credit losses’ in the statement of income.
Available-for-sale financial assets

AFS financial assets are those which are designated as such or do not qualify to be classified as financial assets at FVPL, HTM financial
assets, or loans and receivables. They are purchased and held indefinitely, and may be sold in response to liquidity requirements or
changes in market conditions. They include equity investments, money market papers and other debt instruments.
After initial measurement, AFS financial assets are subsequently measured at fair value. The effective yield component of AFS debt
securities, as well as the impact of translation of foreign currency-denominated AFS debt securities, is reported in the statement of
income. The unrealized gains and losses arising from the fair valuation of AFS financial assets are excluded, net of tax, from reported
earnings and are reported as ‘Net unrealized gain (loss) on AFS financial assets’ under OCI.
When the security is disposed of, the cumulative gain or loss previously recognized in OCI is recognized as ‘Trading and securities
gain - net’ in the statement of income. Interest earned on holding AFS debt securities are reported as ‘Interest income’ using the EIR.
Dividends earned on holding AFS equity instruments are recognized in the statement of income as ‘Miscellaneous income’ when the
right to the payment has been established. The losses arising from impairment of such investments are recognized as ‘Provision for
impairment and credit losses’ in the statement of income.
Other financial liabilities

These are issued financial instruments or their components which are not designated as at FVPL and where the substance of the
contractual arrangement results in the Group having an obligation either to deliver cash or another financial asset to the holder, or to
satisfy the obligation other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of its own
equity shares. The components of issued financial instruments that contain both liability and equity elements are accounted for
separately, with the equity component being assigned the residual amount after deducting from the instrument as a whole the
amount separately determined as the fair value of the liability component on the date of issue.
After initial measurement, other financial liabilities not qualified and not designated as at FVPL are subsequently measured at
amortized cost using the effective interest method. Amortized cost is calculated by taking into account any discount or premium on
the issue and fees that are an integral part of the EIR.
This accounting policy relates to the balance sheet captions ‘Deposit liabilities’, ‘Bills payable’, ‘Manager’s checks’, ‘Subordinated
debt’, and financial liabilities presented under ‘Accrued interest and other expenses’ and ‘Other liabilities’.
Reclassification of Financial Assets

The Group may reclassify, in certain circumstances, non-derivative financial assets out of the HFT investments category and into the
AFS investments, Loans and Receivables or HTM investments categories. The Group may also reclassify, in certain circumstances,
financial instruments out of the AFS investment to Loans and Receivables category. Reclassifications are recorded at fair value at
the date of reclassification, which becomes the new amortized cost.
The Group may reclassify a non-derivative trading asset out of HFT investments and into the Loans and Receivable category if it
meets the definition of loans and receivables, the Group has the intention and ability to hold the financial assets for the foreseeable
future or until maturity and only in rare circumstances. If a financial asset is reclassified, and if the Group subsequently increases its
estimates of future cash receipts as a result of increased recoverability of those cash receipts, the effect of that increase is recognized
as an adjustment to the EIR from the date of the change in estimate.
For a financial asset reclassified out of the AFS investments category, any previous gain or loss on that asset that has been recognized
in OCI is amortized to profit or loss over the remaining life of the investment using the effective interest method. Any difference
between the new amortized cost and the expected cash flows is also amortized over the remaining life of the asset using the
effective interest method. If the asset is subsequently determined to be impaired then the amount recorded in OCI is recycled to the
statement of income. Reclassification is at the election of management, and is determined on an instrument by instrument basis.
The Group does not reclassify any financial instrument into the FVPL category after initial recognition. An analysis of reclassified
financial assets is disclosed in Note 8.
Derecognition of Financial Assets and Liabilities

Financial assets
A financial asset (or, where applicable a part of a financial asset or part of a group of financial assets) is derecognized when:
• the rights to receive cash flows from the asset have expired; or
• the Group retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without
material delay to a third party under a “pass-through” arrangement; or
• the Group has transferred its rights to receive cash flows from the asset and either (a) has transferred substantially all the risks
and rewards of the asset, or (b) has neither transferred nor retained the risks and rewards of the asset but has transferred control
of the asset.
Where the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement,
and has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the
asset is recognized to the extent of the Group’s continuing involvement in the asset. Continuing involvement that takes the form of a
guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount
of consideration that the Group could be required to repay.
Financial liabilities
A financial liability is derecognized when the obligation under the liability is discharged, cancelled or has expired. Where an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a
new liability, and the difference in the respective carrying amounts is recognized in the statement of income.
Impairment of Financial Assets

The Group assesses at each balance sheet date whether there is objective evidence that a financial asset or group of financial assets
is impaired. A financial asset or a group of financial assets is deemed to be impaired if, and only if, there is objective evidence of
impairment as a result of one or more events that has occurred after the initial recognition of the asset (an incurred ‘loss event’) and
that loss event (or events) has an impact on the estimated future cash flows of the financial asset or the group of financial assets that
can be reliably estimated. Evidence of impairment may include indications that the borrower or a group of borrowers is experiencing
significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy
or other financial reorganization and where observable data indicate that there is measurable decrease in the estimated future cash
flows, such as changes in arrears or economic conditions that correlate with defaults.
Financial assets carried at amortized cost

For financial assets carried at amortized cost, the Group first assesses whether objective evidence of impairment exists individually
for financial assets that are individually significant, or collectively for financial assets that are not individually significant.
If there is objective evidence that an impairment loss has been incurred, the amount of loss is measured as the difference between
the asset’s carrying amount and the present value of the estimated future cash flows (excluding future credit losses that have not
been incurred). The present value of the estimated future cash flows is discounted at the financial asset’s original EIR.
If a loan has a variable interest rate, the discount rate for measuring any impairment loss is the current EIR, adjusted for the original
credit risk premium. The calculation of the present value of the estimated future cash flows of a collateralized financial asset reflects
the cash flows that may result from foreclosure less costs for obtaining and selling the collateral, whether or not foreclosure is
probable. The carrying amount of the asset is reduced through use of an allowance account and the amount of loss is charged to
the statement of income. Interest income continues to be recognized based on the original EIR of the asset. The financial assets,
together with the associated allowance accounts, are written off when there is no realistic prospect of future recovery and all
collateral has been realized.
If the Group determines that no objective evidence of impairment exists for individually assessed financial asset, whether significant or
not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses for impairment.
Those characteristics are relevant to the estimation of future cash flows for groups of such assets by being indicative of the debtors’
ability to pay all amounts due according to the contractual terms of the assets being evaluated. Assets that are individually assessed
for impairment and for which an impairment loss is, or continues to be, recognized are not included in a collective assessment for
impairment.
For the purpose of a collective evaluation of impairment, financial assets are grouped on the basis of such credit risk characteristics
as industry, collateral type and past-due status.
Future cash flows in a group of financial assets that are collectively evaluated for impairment are estimated on the basis of historical
loss experience for assets with credit risk characteristics similar to those in the group. Historical loss experience is adjusted on the
basis of current observable data to reflect the effects of current conditions that did not affect the period on which the historical loss
experience is based and to remove the effects of conditions in the historical period that do not exist currently. Estimates of changes
in future cash flows reflect, and are directionally consistent with changes in related observable data from period to period (such as
changes in unemployment rates, property prices, commodity prices, payment status, or other factors that are indicative of incurred
losses in the Group and their magnitude). The methodology and assumptions used for estimating future cash flows are reviewed
regularly by the Group to reduce any differences between loss estimates and actual loss experience.
If, in a subsequent year, the amount of the estimated impairment loss decreases because of an event occurring after the impairment
was recognized, the previously recognized impairment loss is reduced by adjusting the allowance account. If a future write-off is later
recovered, any amounts formerly charged are credited to ‘Provision for impairment and credit losses’.
Financial assets carried at cost

If there is objective evidence that an impairment loss on an unquoted equity instrument that is not carried at fair value because its
fair value cannot be reliably measured, or on a derivative asset that is linked to and must be settled by delivery of such an unquoted
equity instrument has been incurred, the amount of loss is measured as the difference between the asset’s carrying amount and the
present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset.
Available-for-sale financial assets

For AFS financial assets, the Group assesses at each balance sheet date whether there is objective evidence that a financial asset or
group of financial assets is impaired.
In the case of equity investments classified as AFS financial assets, this would include a significant or prolonged decline in the fair
value of the investments below its cost. Where there is evidence of impairment, the cumulative loss - measured as the difference
between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognized in the
statement of income - is removed from OCI and recognized in the statement of income. Impairment losses on equity investments
are not reversed through the statement of income. Increases in fair value after impairment are recognized directly in OCI.
In the case of debt instruments classified as AFS financial assets, impairment is assessed based on the same criteria as financial
assets carried at amortized cost. However, the amount recorded for impairment is the cumulative loss measured as the difference
between the amortized cost and the current fair value, less any impairment loss on that investment previously recognized in profit
or loss. Future interest income is based on the reduced carrying amount and is accrued based on the rate of interest used to
discount future cash flows for the purpose of measuring impairment loss. Such accrual is recorded as part of ‘Interest income’ in the
statement of income. If, in subsequent year, the fair value of a debt instrument increased and the increase can be objectively related
to an event occurring after the impairment loss was recognized in the statement of income, the impairment loss is reversed through
the statement of income.
Restructured loans
Where possible, the Group seeks to restructure loans rather than to take possession of collateral. This may involve extending
the payment arrangements and the agreement of new loan conditions. Once the terms have been renegotiated, the loan is no
longer considered past due. Management continuously reviews restructured loans to ensure that all criteria are met and that future
payments are likely to occur. The loans continue to be subject to an individual or collective impairment assessment, calculated using
the loan’s original EIR. The difference between the recorded value of the original loan and the present value of the restructured cash
flows, discounted at the original EIR, is recognized in ‘Provision for impairment and credit losses’ in the statement of income.
Investment in Subsidiaries
In the separate or parent company financial statements, investment in a subsidiary is carried at cost, less accumulated impairment
in value. Dividends earned on this investment is recognized in the Parent Company’s statement of income as declared by the
respective BOD of the investee.
Investment in Associates
Associates pertain to all entities over which the Group has significant influence but not control, generally accompanying a shareholding
of between 20.00% and 50.00% of the voting rights. In the consolidated financial statements, investments in associates are
accounted for under the equity method of accounting.
Under the equity method, an investment in an associate is carried in the balance sheet at cost plus post-acquisition changes in the
Group’s share of the net assets of the associate. Goodwill relating to an associate is included in the carrying value of the investments
and is not amortized. The statement of income reflects the share of the results of operations of the associate. Where there has been
a change recognized directly in the equity of the associate, the Group recognizes its share of any changes and discloses this, when
applicable, in the statement of changes in equity.
When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured
receivables, the Group does not recognize further losses, unless it has incurred obligations or made payments on behalf of the
associate. Profits or losses resulting from transactions between the Group and an associate are eliminated to the extent of the
interest in the associate.
The financial statements of the associate are prepared for the same reporting period as the Parent Company. Where necessary,
adjustments are made to bring the accounting policies in line with those of the Group.
In the separate or parent company financial statements, investments in associates are carried at cost, less accumulated impairment
in value. Dividends earned on these investments are recognized in the Parent Company’s statement of income as declared by the
respective BOD of the investees.
Upon loss of significant influence over the associate, the Group measures and recognizes any retained investment at its fair value.
Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retained
investment and proceeds from disposal is recognized in profit or loss.
Business Combinations and Goodwill

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of
the consideration transferred, measured at acquisition date fair value and the amount of any non-controlling interest in the acquiree.
For each business combination, the acquirer measures the non-controlling interest in the acquiree either at fair value or at the
proportionate share of the acquiree’s identifiable net assets. Acquisition costs incurred are charged to profit or loss.
When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and
designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date.
This includes the separation of embedded derivatives in host contracts by the acquiree.
If the business combination is achieved in stages, the acquisition date fair value of the acquirer’s previously held equity interest in the
acquiree is remeasured to fair value at the acquisition date through profit or loss.
Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date. Subsequent
changes to the fair value of the contingent consideration which is deemed to be an asset or liability, will be recognized in accordance
with PAS 39, either in profit or loss or as a charge to OCI. If the contingent consideration is classified as equity, it should not be
remeasured until it is finally settled within equity.
Goodwill is initially measured at cost being the excess of the aggregate of fair value of the consideration transferred and the amount
recognized for non-controlling interest over the net identifiable assets acquired and liabilities assumed. If this consideration is lower
than the fair value of the net assets of the subsidiary acquired, the difference is recognized in profit or loss.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses.
Goodwill is tested for impairment annually. For the purpose of impairment testing, goodwill acquired in a business combination
is, from the date of acquisition, allocated to each of the Group’s CGUs, or groups of CGUs, that are expected to benefit from the
synergies of the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units or group
of units. Each unit or group of units to which the goodwill is allocated:
• represents the lowest level within the Group at which the goodwill is monitored for internal management purposes; and
• is not larger than an operating segment identified for segment reporting purposes.
Where goodwill forms part of a CGU (or group of CGUs) and part of the operation within that unit is disposed of, the goodwill
associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss
on disposal of the operation. Goodwill disposed of in this circumstance is measured based on the relative values of the operation
disposed of and the portion of the CGU retained.
Bank Premises, Furniture, Fixtures and Equipment

Land is stated at cost less any impairment in value while depreciable properties including buildings, leasehold improvements, and
furniture, fixtures and equipment are stated at cost less accumulated depreciation and amortization, and any impairment in value.
Such cost includes the cost of replacing part of the bank premises, furniture, fixtures and equipment when that cost is incurred and if the
recognition criteria are met, but excluding repairs and maintenance costs.
Depreciation and amortization is calculated on the straight-line method over the estimated useful life (EUL) of the depreciable assets as
follows:
EUL
Buildings 50 years
Furniture, fixtures and equipment 3 to 5 years
Leasehold improvements Shorter of 6 years or the related lease terms
The depreciation and amortization method and useful life are reviewed periodically to ensure that the method and period of depreciation and
amortization are consistent with the expected pattern of economic benefits from items of bank premises, furniture, fixtures and equipment
and leasehold improvements.
An item of bank premises, furniture, fixtures and equipment is derecognized upon disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net
disposal proceeds and the carrying amount of the asset) is included in the statement of income in the year the asset is derecognized.
Investment Properties
Investment properties include real properties acquired in settlement of loans and receivables which are measured initially at cost including
certain transaction costs. Investment properties acquired through a nonmonetary asset exchange is measured initially at fair value unless
(a) the exchange lacks commercial substance or (b) the fair value of neither the asset received nor the asset given up is reliably measurable.
Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and any accumulated impairment
in value.
Expenditures incurred after the investment properties have been put into operation, such as repairs and maintenance costs, are normally
charged to income in the period in which the costs are incurred.
Depreciation is calculated on a straight-line basis using the EUL of the building and improvement components of investment properties
which ranged from 10 to 33 years from the time of acquisition of the investment properties.
Investment properties are derecognized when they have either been disposed of or when the investment properties are permanently
withdrawn from use and no future benefit is expected from their disposal. Any gain or loss on the derecognition of an investment property
is recognized as ‘Gain on sale of investment properties’ in the statement of income in the year of derecognition.
Transfers are made to investment properties when, and only when, there is a change in use evidenced by ending of owner occupation,
commencement of an operating lease to another party or ending of construction or development. Transfers are made from investment
properties when, and only when, there is a change in use evidenced by commencement of owner occupation or commencement of
development with a view to sale.
Intangible Assets
Intangible assets include branch licenses resulting from the Parent Company’s acquisition of CBSI, Unity Bank and PDB (Notes 10 and 13).
The branch licenses are initially measured at fair value as of the date of acquisition and are deemed to have an indefinite useful life as there
is no foreseeable limit to the period over which they are expected to generate net cash inflows for the Group.
Such intangible assets are not amortized, instead they are tested for impairment annually either individually or at the CGU level. Impairment
is determined by assessing the recoverable amount of each CGU (or group of CGUs) to which the intangible asset relates. Recoverable
amount is the higher of the CGU’s fair value less costs to sell and its value in use. Where the recoverable amount of the CGU is less than
its carrying amount, an impairment loss is recognized.
Gains and losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and
the carrying amount of the asset and are recognized in earnings when the asset is derecognized.
Impairment of Nonfinancial Assets

At each reporting date, the Group assesses whether there is any indication that its nonfinancial assets (e.g., investment in associates,
investment properties, bank premises, furniture, fixtures and equipment and intangible assets) may be impaired. When an indicator of
impairment exists or when an annual impairment testing for an asset is required, the Group makes a formal estimate of recoverable amount.
Recoverable amount is the higher of an asset’s (or CGU’s) fair value less costs to sell and its value in use and is determined for an individual
asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets, in which
case the recoverable amount is assessed as part of the CGU to which it belongs. Where the carrying amount of an asset (or CGU) exceeds
its recoverable amount, the asset (or CGU) is considered impaired and is written down to its recoverable amount. In assessing value in use,
the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments
of the time value of money and the risks specific to the asset (or CGU).
An impairment loss is charged to operations in the year in which it arises.
For nonfinancial assets, excluding goodwill and branch licenses, an assessment is made at each reporting date as to whether there is
any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the
recoverable amount is estimated. A previously recognized impairment loss is reversed, except for goodwill, only if there has been a change
in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. If that is the case,
the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that
would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is
recognized in the statement of income. After such a reversal, the depreciation expense is adjusted in future years to allocate the asset’s
revised carrying amount, less any residual value, on a systematic basis over its remaining life.
Leases
The determination of whether an arrangement is, or contains a lease is based on the substance of the arrangement and requires an
assessment of whether the fulfillment of the arrangement is dependent on the use of a specific asset or assets and the arrangement
conveys a right to use the asset. A reassessment is made after inception of the lease only if one of the following applies:
(a) There is a change in contractual terms, other than a renewal or extension of the arrangement;
(b) A renewal option is exercised or extension granted, unless that term of the renewal or extension was initially included in the lease term;
(c) There is a change in the determination of whether fulfillment is dependent on a specified asset; or
(d) There is a substantial change to the asset.
Where a reassessment is made, lease accounting shall commence or cease from the date when the change in circumstances gave rise to
the reassessment for scenarios (a), (c), or (d) above, and at the date of renewal or extension period for scenario (b).
Group as lessee
Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases. Operating
lease payments are recognized as an expense in the statement of income on a straight-line basis over the lease term.
Group as lessor
Leases where the Group does not transfer substantially all the risks and benefits of ownership of the assets are classified as operating
leases. Initial direct costs incurred in negotiating operating leases are added to the carrying amount of the leased asset and recognized over
the lease term on the same basis as the rental income. Contingent rents are recognized as revenue in the period in which they are earned.
Capital Stock
Capital stocks are recorded at par. Proceeds in excess of par value are recognized under equity as ‘Capital paid in excess of par value’ in the
balance sheets. Incremental costs incurred which are directly attributable to the issuance of new shares are shown in equity as a deduction
from proceeds, net of tax.
Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably
measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable,
taking into account contractually defined terms of payment and excluding taxes or duty. The Group assesses its revenue arrangements
against specific criteria in order to determine if it is acting as principal or agent. The Group has concluded that it is acting as a principal in all
of its revenue arrangements. The following specific recognition criteria must also be met before revenue is recognized:
Interest income
For all financial instruments measured at amortized cost and interest-bearing financial instruments classified as FVPL and AFS financial
assets, interest income is recorded at the EIR, which is the rate that exactly discounts estimated future cash payments or receipts through
the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or
financial liability. The calculation takes into account all contractual terms of the financial instrument (for example, prepayment options),
includes any fees or incremental costs that are directly attributable to the instrument and are an integral part of the EIR, as applicable, but
not future credit losses. The adjusted carrying amount is calculated based on the original EIR. The change in carrying amount is recorded
as ‘Interest income’.
Once the recorded value of a financial asset or group of similar financial assets has been reduced due to an impairment loss, interest income
continues to be recognized using the original EIR applied to the new carrying amount.
Loan fees and service charges

Loan commitment fees are recognized as earned over the terms of the credit lines granted to each borrower. Loan syndication fees are
recognized upon completion of all syndication activities and where the Group does not have further obligations to perform under the
syndication agreement.
Service charges and penalties are recognized only upon collection or accrued where there is a reasonable degree of certainty as to their
collectability.
Dividend income
Dividend income is recognized when the Group’s right to receive payment is established.
Trading and securities gain

This represents results arising from trading activities including all gains and losses from changes in fair value of financial assets held for
trading and designated at FVPL. It also includes gains and losses realized from sale of AFS financial assets.
Other income
Income from sale of service is recognized upon rendition of the service. Income from sale of properties is recognized upon completion of
the earning process and when the collectability of the sales price is reasonably assured.
Rental income
Rental income arising on leased properties is accounted for on a straight-line basis over the lease terms on ongoing leases and is recorded
in the statement of income under ‘Miscellaneous income’.
Expense Recognition
Expense is recognized when it is probable that a decrease in future economic benefit related to a decrease in an asset or an increase in
liability has occurred and the decrease in economic benefits can be measured reliably. Revenues and expenses that relate to the same
transaction or other event are recognized simultaneously.
Interest Expense
Interest expense for all interest-bearing financial liabilities are recognized in ‘Interest expense’ in the statement of income using the EIR of
the financial liabilities to which they relate.
Other Expenses
Expenses encompass losses as well as those expenses that arise in the ordinary course of business of the Group. Expenses are recognized
when incurred.
Retirement Benefits
Defined benefit plan
The net defined benefit liability or asset is the aggregate of the present value of the defined benefit obligation at the end of the reporting
period reduced by the fair value of plan assets and adjusted for any effect of limiting a net defined benefit asset to the asset ceiling.
The defined benefit obligation is calculated annually by an independent actuary. The present value of the defined benefit obligation is
determined by discounting the estimated future cash outflows using interest rates on government bonds that have terms to maturity
approximating the terms of the related retirement liability. The asset ceiling is the present value of any economic benefits available in the
form of refunds from the plan or reductions in future contributions to the plan.
The cost of providing benefits under the defined benefit plans is actuarially determined using the projected unit credit method.
Defined benefit costs comprise the following:

(a) service cost;
(b) net interest on the net defined benefit liability or asset; and
(c) remeasurements of net defined benefit liability or asset.
Service costs which include current service costs, past service costs and gains or losses on non-routine settlements are recognized as
expense in profit or loss. Past service costs are recognized when plan amendment or curtailment occurs.
Net interest on the net defined benefit liability or asset is the change during the period in the net defined benefit liability or asset that arises
from the passage of time which is determined by applying the discount rate based on high quality corporate bonds to the net defined benefit
liability or asset. Net interest on the net defined benefit liability or asset is recognized as expense or income in profit or loss.
Remeasurements comprising actuarial gains and losses, return on plan assets and any change in the effect of the asset ceiling (excluding
net interest on defined benefit liability) are recognized immediately in OCI in the period in which they arise. Remeasurements are not
reclassified to profit or loss in subsequent periods.
Plan assets are assets that are held by a long-term employee benefit fund or qualifying insurance policies. Plan assets are not available to
the creditors of the Parent Company, nor can they be paid directly to the Parent Company. The fair value of plan assets is based on market
price information. When no market price is available, the fair value of plan assets is estimated by discounting expected future cash flows
using a discount rate that reflects both the risk associated with the plan assets and the maturity or expected disposal date of those assets
(or, if they have no maturity, the expected period until the settlement of the related obligations).
The Parent Company’s right to be reimbursed of some or all of the expenditure required to settle a defined benefit obligation is recognized
as a separate asset at fair value when and only when reimbursement is virtually certain. If the fair value of the plan assets is higher than
the present value of the defined benefit obligation, the measurement of the resulting defined benefit asset is limited to the present value of
economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan.
Employee leave entitlement

Employee entitlements to annual leave are recognized as a liability when they are accrued to the employees. The undiscounted liability for
leave expected to be settled after the end of the annual reporting period is recognized for services rendered by employees up to the end
of the reporting period.
Provisions and Contingencies

Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event and it is probable that
an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the
amount of the obligation. Where the Group expects some or all of a provision to be reimbursed, for example, under an insurance contract,
the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating to any
provision is presented in the statement of income, net of any reimbursement. If the effect of the time value of money is material, provisions
are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of
money and, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage
of time is recognized as an interest expense.
Contingent liabilities are not recognized in the financial statements but are disclosed unless the possibility of an outflow of resources
embodying economic benefits is remote. Contingent assets are not recognized but are disclosed in the financial statements when an inflow
of economic benefits is probable.
Income Taxes
Current Tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted as of the
balance sheet date.
Deferred Tax
Deferred tax is provided, using the balance sheet liability method, on all temporary differences at the balance sheet date between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized for all deductible temporary
differences, carry forward of unused tax credits from the excess of minimum corporate income tax (MCIT) over the regular corporate
income tax (RCIT), and unused net operating loss carryover (NOLCO), to the extent that it is probable that sufficient taxable profit will be
available against which the deductible temporary differences and carry forward of unused tax credits from MCIT and unused NOLCO can be
utilized. Deferred tax, however, is not recognized on temporary differences that arise from the initial recognition of an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither the accounting income nor taxable income.
Deferred tax liabilities are not provided on non-taxable temporary differences associated with investments in domestic subsidiaries and
associates.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable
that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets
are reassessed at each balance sheet date and are recognized to the extent that it has become probable that future taxable profit will allow
the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are applicable to the period when the asset is realized or the liability is
settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.
Current tax and deferred tax relating to items recognized directly in equity is also recognized in equity and not in the statement of income.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax
liabilities and deferred taxes relate to the same taxable entity and the same taxation authority.
Earnings per Share

Basic earnings per share (EPS) is computed by dividing net income for the year by the weighted average number of common shares
outstanding during the year after giving retroactive effect to stock splits, stock dividends declared and stock rights exercised during the
year, if any.
The Parent Company has no outstanding dilutive potential common shares.
Dividends on Common Shares

Dividends on common shares are recognized as a liability and deducted from equity when approved by the respective shareholders of the
Parent Company and its subsidiaries. Dividends declared during the year that are approved after the balance sheet date are dealt with as
an event after the balance sheet date.
Segment Reporting
The Group’s operating businesses are organized and managed separately according to the nature of the products and services provided,
with each segment representing a strategic business unit that offers different products and serves different markets. Financial information
on business segments is presented in Note 30. The Group’s revenue producing assets are located in the Philippines (i.e., one geographical
location). Therefore, geographical segment information is no longer presented.
Fiduciary Activities
Assets and income arising from fiduciary activities together with related undertakings to return such assets to customers are excluded from
the financial statements where the Parent Company acts in a fiduciary capacity such as nominee, trustee or agent.
Events after the Reporting Period

Post-year-end events that provide additional information about the Group’s position at the balance sheet date (adjusting event) are reflected in
the financial statements. Post-year-end events that are not adjusting events, if any, are disclosed when material to the financial statements.
Future Changes in Accounting Policies
The Group will adopt the Standards and Interpretations enumerated below when these become effective. Except as otherwise indicated,
the Group does not expect the adoption of these new and amended PFRS and Philippine Interpretations to have significant impact on its
PFRS 9, Financial Instruments – Classification and Measurement (2010 version)

PFRS 9 (2010 version) reflects the first phase on the replacement of PAS 39 and applies to the classification and measurement of financial
assets and liabilities as defined in PAS 39, Financial Instruments: Recognition and Measurement. PFRS 9 requires all financial assets to
be measured at fair value at initial recognition. A debt financial asset may, if the fair value option (FVO) is not invoked, be subsequently
measured at amortized cost if it is held within a business model that has the objective to hold the assets to collect the contractual cash
flows and its contractual terms give rise, on specified dates, to cash flows that are solely payments of principal and interest on the principal
outstanding. All other debt instruments are subsequently measured at fair value through profit or loss. All equity financial assets are
measured at fair value either through OCI or profit or loss. Equity financial assets held for trading must be measured at fair value through
profit or loss. For FVO liabilities, the amount of change in the fair value of a liability that is attributable to changes in credit risk must be
presented in OCI. The remainder of the change in fair value is presented in profit or loss, unless presentation of the fair value change in
respect of the liability’s credit risk in OCI would create or enlarge an accounting mismatch in profit or loss. All other PAS 39 classification
and measurement requirements for financial liabilities have been carried forward into PFRS 9, including the embedded derivative separation
rules and the criteria for using the FVO.
PFRS 9 (2010 version) is effective for annual periods beginning on or after January 1, 2015. This mandatory adoption date was moved
to January 1, 2018 when the final version of PFRS 9 was adopted by the Philippine Financial Reporting Standards Council (FRSC). Such
adoption, however, is still for approval by the Board of Accountancy (BOA).
The adoption of the first phase of PFRS 9 will have an effect on the classification and measurement of the Group’s financial assets, but will
have no impact on the classification and measurement of financial liabilities.
Philippine Interpretation IFRIC 15, Agreements for the Construction of Real Estate
This interpretation covers accounting for revenue and associated expenses by entities that undertake the construction of real estate directly
or through subcontractors. The SEC and the FRSC have deferred the effectivity of this interpretation until the final Revenue standard is
issued by the International Accounting Standards Board (IASB) and an evaluation of the requirements of the final Revenue standard against
the practices of the Philippine real estate industry is completed. Adoption of the interpretation when it becomes effective will not have any
impact on the financial statements of the Group.
The following standards and amendments issued by the IASB were already adopted by the FRSC but are still for approval by BOA.
Effective January 1, 2015
PAS 19, Employee Benefits – Defined Benefit Plans: Employee Contributions (Amendments)
PAS 19 requires an entity to consider contributions from employees or third parties when accounting for defined benefit plans. Where the
contributions are linked to service, they should be attributed to periods of service as negative benefit. These amendments clarify that, if
the amount of the contributions is independent of the number of years of service, an entity is permitted to recognize such contributions as a
reduction in the service cost in the period in which the service is rendered, instead of allocating the contributions to the periods of service.
This amendment is effective for annual periods beginning on or after January 1, 2015. The Group does not expect the amendment to have
an impact since it has a noncontributory defined benefit plan.

The Annual Improvements to PFRSs (2010-2012 cycle) are effective for annual periods beginning on or after January 1, 2015 and are not
expected to have a material impact on the Group. They include:
PFRS 2, Share-based Payment – Definition of Vesting Condition

This improvement is applied prospectively and clarifies various issues relating to the definitions of performance and service conditions
which are vesting conditions, including:
• A performance condition must contain a service condition;
• A performance target must be met while the counterparty is rendering service;
• A performance target may relate to the operations or activities of an entity, or to those of another entity in the same group;
• A performance condition may be a market or non-market condition; and
• If the counterparty, regardless of the reason, ceases to provide service during the vesting period, the service condition is not
satisfied.
This amendment does not apply to the Group as it has no share-based payments.
PFRS 3, Business Combinations – Accounting for Contingent Consideration in a Business Combination

The amendment is applied prospectively for business combinations for which the acquisition date is on or after July 1, 2014. It clarifies
that a contingent consideration that is not classified as equity is subsequently measured at fair value through profit or loss whether or
not it falls within the scope of PAS 39, Financial Instruments: Recognition and Measurement (or PFRS 9, Financial Instruments, if early
adopted). The Group shall consider the amendment for future business combinations.
PFRS 8, Operating Segments – Aggregation of Operating Segments and Reconciliation of the Total of the Reportable Segments’
Assets to the Entity’s Assets
The amendments are applied retrospectively and clarify that:
• An entity must disclose the judgments made by management in applying the aggregation criteria in the standard, including a brief
description of operating segments that have been aggregated and the economic characteristics (e.g., sales and gross margins)
used to assess whether the segments are ‘similar’.
• The reconciliation of segment assets to total assets is only required to be disclosed if the reconciliation is reported to the chief
operating decision maker, similar to the required disclosure for segment liabilities.
The amendments affect disclosures only and the Group does not expect that PFRS 8 will have material financial impact in future
PAS 16, Property, Plant and Equipment, and PAS 38, Intangible Assets – Revaluation Method – Proportionate Restatement of
Accumulated Depreciation and Amortization
The amendment is applied retrospectively and clarifies in PAS 16 and PAS 38 that the asset may be revalued by reference to the
observable data on either the gross or the net carrying amount. In addition, the accumulated depreciation or amortization is the
difference between the gross and carrying amounts of the asset. The amendment has no impact on the Group’s financial position or
performance.
PAS 24, Related Party Disclosures – Key Management Personnel

The amendment is applied retrospectively and clarifies that a management entity, which is an entity that provides key management
personnel services, is a related party subject to the related party disclosures. In addition, an entity that uses a management entity is
required to disclose the expenses incurred for management services. The amendments affect disclosures only and have no impact
on the Group’s financial position or performance.

The Annual Improvements to PFRSs (2011-2013 cycle) are effective for annual periods beginning on or after January 1, 2015 and are not
PFRS 3, Business Combinations – Scope Exceptions for Joint Arrangements

The amendment is applied prospectively and clarifies the following regarding the scope exceptions within PFRS 3:
• Joint arrangements, not just joint ventures, are outside the scope of PFRS 3.
• This scope exception applies only to the accounting in the financial statements of the joint arrangement itself.
PFRS 13, Fair Value Measurement – Portfolio Exception

The amendment is applied prospectively and clarifies that the portfolio exception in PFRS 13 can be applied not only to financial assets
and financial liabilities, but also to other contracts within the scope of PAS 39 (or PFRS 9, as applicable).
PAS 40, Investment Property

The amendment is applied prospectively and clarifies that PFRS 3, and not the description of ancillary services in PAS 40, is used to
determine if the transaction is the purchase of an asset or business combination. The description of ancillary services in PAS 40 only
differentiates between investment property and owner-occupied property (i.e., property, plant and equipment). The amendment has
no significant impact on the Group’s financial position or performance.
PAS 16, Property, Plant and Equipment, and PAS 38, Intangible Assets – Clarification of Acceptable Methods of Depreciation and
Amortization (Amendments)
The amendments clarify the principle in PAS 16 and PAS 38 that revenue reflects a pattern of economic benefits that are generated from
operating a business (of which the asset is part) rather than the economic benefits that are consumed through use of the asset. As a result,
a revenue-based method cannot be used to depreciate property, plant and equipment and may only be used in very limited circumstances
to amortize intangible assets. The amendments are effective prospectively for annual periods beginning on or after January 1, 2016, with
early adoption permitted. These amendments are not expected to have any impact to the Group since it does not use a revenue-based
method to depreciate its non-current assets.
PAS 16, Property, Plant and Equipment, and PAS 41, Agriculture – Bearer Plants (Amendments)
The amendments change the accounting requirements for biological assets that meet the definition of bearer plants. Under the amendments,
biological assets that meet the definition of bearer plants will no longer be within the scope of PAS 41. Instead, PAS 16 will apply. After
initial recognition, bearer plants will be measured under PAS 16 at accumulated cost (before maturity) and using either the cost model or
revaluation model (after maturity). The amendments also require that produce that grows on bearer plants will remain in the scope of PAS
41 measured at fair value less costs to sell. For government grants related to bearer plants, PAS 20, Accounting for Government Grants
and Disclosure of Government Assistance, will apply. The amendments are retrospectively effective for annual periods beginning on or
after January 1, 2016, with early adoption permitted. These amendments are not expected to have any impact to the Group as it does not
have any bearer plants.
PAS 27, Separate Financial Statements – Equity Method in Separate Financial Statements (Amendments)
The amendments will allow entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in
their separate financial statements. Entities already applying PFRS and electing to change to the equity method in its separate financial
statements will have to apply that change retrospectively. For first-time adopters of PFRS electing to use the equity method in its separate
financial statements, they will be required to apply this method from the date of transition to PFRS. The amendments are effective for
annual periods beginning on or after January 1, 2016, with early adoption permitted. It is not expected that the amendment would be
relevant to the Group.
PFRS 10, Consolidated Financial Statements and PAS 28, Investments in Associates and Joint Ventures – Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture
These amendments address an acknowledged inconsistency between the requirements in PFRS 10 and those in PAS 28 (2011) in dealing
with the sale or contribution of assets between an investor and its associate or joint venture. The amendments require that a full gain or loss
is recognized when a transaction involves a business (whether it is housed in a subsidiary or not). A partial gain or loss is recognized when
a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary. These amendments are
effective from annual periods beginning on or after 1 January 2016. It is not expected that the amendment would be relevant to the Group.
PFRS 11, Joint Arrangements – Accounting for Acquisitions of Interests in Joint Operations (Amendments)
The amendments to PFRS 11 require that a joint operator accounting for the acquisition of an interest in a joint operation, in which the
activity of the joint operation constitutes a business must apply the relevant PFRS 3 principles for business combinations accounting. The
amendments also clarify that a previously held interest in a joint operation is not remeasured on the acquisition of an additional interest
in the same joint operation while joint control is retained. In addition, a scope exclusion has been added to PFRS 11 to specify that the
amendments do not apply when the parties sharing joint control, including the reporting entity, are under common control of the same
ultimate controlling party.
The amendments apply to both the acquisition of the initial interest in a joint operation and the acquisition of any additional interests in the
same joint operation and are prospectively effective for annual periods beginning on or after January 1, 2016, with early adoption permitted.
These amendments are not expected to have any impact to the Group.
PFRS 14, Regulatory Deferral Accounts

PFRS 14 is an optional standard that allows an entity, whose activities are subject to rate-regulation, to continue applying most of its existing
accounting policies for regulatory deferral account balances upon its first-time adoption of PFRS. Entities that adopt PFRS 14 must present
the regulatory deferral accounts as separate line items on the statement of financial position and present movements in these account
balances as separate line items in the statement of profit or loss and other comprehensive income. The standard requires disclosures on
the nature of, and risks associated with, the entity’s rate-regulation and the effects of that rate-regulation on its financial statements. PFRS
14 is effective for annual periods beginning on or after January 1, 2016. The standard would not apply to the Group since it is an existing
PFRS preparer.

The Annual Improvements to PFRSs (2012-2014 cycle) are effective for annual periods beginning on or after January 1, 2016, and are not
PFRS 5, Non-current Assets Held for Sale and Discontinued Operations – Changes in Methods of Disposal
The amendment is applied prospectively and clarifies that changing from a disposal through sale to a disposal through distribution to
owners and vice-versa should not be considered to be a new plan of disposal, rather it is a continuation of the original plan. There is,
therefore, no interruption of the application of the requirements in PFRS 5. The amendment also clarifies that changing the disposal
method does not change the date of classification.
PFRS 7, Financial Instruments: Disclosures – Servicing Contracts

PFRS 7 requires an entity to provide disclosures for any continuing involvement in a transferred asset that is derecognized in its
entirety. The amendment clarifies that a servicing contract that includes a fee can constitute continuing involvement in a financial
asset. An entity must assess the nature of the fee and arrangement against the guidance in PFRS 7 in order to assess whether the
disclosures are required. The amendment is to be applied such that the assessment of which servicing contracts constitute continuing
involvement will need to be done retrospectively. However, comparative disclosures are not required to be provided for any period
beginning before the annual period in which the entity first applies the amendments.
PFRS 7, Applicability of the Amendments to PFRS 7 to Condensed Interim Financial Statements

This amendment is applied retrospectively and clarifies that the disclosures on offsetting of financial assets and financial liabilities are
not required in the condensed interim financial report unless they provide a significant update to the information reported in the most
recent annual report.
PAS 19, Employee Benefits – regional market issue regarding discount rate
This amendment is applied prospectively and clarifies that market depth of high quality corporate bonds is assessed based on the
currency in which the obligation is denominated, rather than the country where the obligation is located. When there is no deep
market for high quality corporate bonds in that currency, government bond rates must be used.
PAS 34, Interim Financial Reporting – disclosure of information ‘elsewhere in the interim financial report’
The amendment is applied retrospectively and clarifies that the required interim disclosures must either be in the interim financial
statements or incorporated by cross-reference between the interim financial statements and wherever they are included within the
greater interim financial report (e.g., in the management commentary or risk report).
PFRS 9, Financial Instruments – Hedge Accounting and amendments to PFRS 9, PFRS 7 and PAS 39 (2013 version)
PFRS 9 (2013 version) already includes the third phase of the project to replace PAS 39 which pertains to hedge accounting. This version
of PFRS 9 replaces the rules-based hedge accounting model of PAS 39 with a more principles-based approach. Changes include replacing
the rules-based hedge effectiveness test with an objectives-based test that focuses on the economic relationship between the hedged
item and the hedging instrument, and the effect of credit risk on that economic relationship; allowing risk components to be designated
as the hedged item, not only for financial items but also for non-financial items, provided that the risk component is separately identifiable
and reliably measurable; and allowing the time value of an option, the forward element of a forward contract and any foreign currency basis
spread to be excluded from the designation of a derivative instrument as the hedging instrument and accounted for as costs of hedging.
PFRS 9 also requires more extensive disclosures for hedge accounting.
PFRS 9 (2013 version) has no mandatory effective date. The mandatory effective date of
January 1, 2018 was eventually set when the final version of PFRS 9 was adopted by the FRSC. The adoption of the final version of PFRS
9, however, is still for approval by BOA.
The adoption of PFRS 9 will have an effect on the classification and measurement of the Group’s financial assets, but will potentially have no
impact on the classification and measurement of financial liabilities. The Group is currently assessing the impact of adopting this standard.
PFRS 9, Financial Instruments (2014 or final version)

In July 2014, the final version of PFRS 9, Financial Instruments, was issued. PFRS 9 reflects all phases of the financial instruments project
and replaces PAS 39, Financial Instruments: Recognition and Measurement, and all previous versions of PFRS 9. The standard introduces
new requirements for classification and measurement, impairment, and hedge accounting.
PFRS 9 is effective for annual periods beginning on or after January 1, 2018, with early application permitted. Retrospective application is
required, but comparative information is not compulsory. Early application of previous versions of PFRS 9 is permitted if the date of initial
application is before February 1, 2015. The adoption of the final version of PFRS 9, however, is still for approval by BOA.
The adoption of PFRS 9 will have an effect on the classification and measurement of the Group’s financial assets, but will potentially have no
impact on the classification and measurement of financial liabilities. The Group is currently assessing the impact of adopting this standard.
The following new standard issued by the IASB has not yet been adopted by the FRSC:
IFRS 15, Revenue from Contracts with Customers

IFRS 15 was issued in May 2014 and establishes a new five-step model that will apply to revenue arising from contracts with customers.
Under IFRS 15 revenue is recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for
transferring goods or services to a customer.
The principles in IFRS 15 provide a more structured approach to measuring and recognizing revenue. The new revenue standard is applicable
to all entities and will supersede all current revenue recognition requirements under IFRS. Either a full or modified retrospective application
is required for annual periods beginning on or after 1 January 2017 with early adoption permitted.
The Group is currently assessing the impact of IFRS 15 and plans to adopt the new standard on the required effective date once adopted
locally. This new standard issued by the IASB has not yet been adopted by the FRSC.
3. SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES
The preparation of the financial statements in accordance with PFRS requires the Group to make judgments and estimates that affect the
reported amounts of assets, liabilities, income and expenses and disclosure of contingent assets and contingent liabilities. Future events
may occur which will cause the judgments and assumptions used in arriving at the estimates to change. The effects of any change in
judgments and estimates are reflected in the financial statements as they become reasonably determinable.
Judgments and estimates are continually evaluated and are based on historical experience and other factors, including expectations of
future events that are believed to be reasonable under the circumstances.
Judgments
a. Assessment of control over the entities for consolidation
The Group has majority owned subsidiaries discussed in Note 2. Management concluded that the Group controls these wholly
owned and majority owned subsidiaries through its voting rights and, therefore, consolidates these entities in its consolidated financial
statements.
b. Assessment of significant influence over an associate

Management concluded that the Parent Company has significant influence over an associate even though it holds less than 20.00%
of the voting rights because of the arrangement entered into with the associate’s majority owner that grants the Parent Company with
a representation in the associate’s BOD which allows it to participate in the policy-making process of the associate (Note 10).
c. Functional currency
PAS 21, The Effects of Changes in Foreign Exchange Rates, requires management to use its judgment in determining the entity’s
functional currency such that it most faithfully represents the economic effects of the underlying transactions, events and conditions
that are relevant to the entity. In making this judgment, the Group considers the following:
• the currency that mainly influences sales prices for financial instruments and services (this will often be the currency in which
sales prices for its financial instruments and services are denominated and settled);
• the currency in which funds from financing activities are generated; and
• the currency in which receipts from operating activities are usually retained.
d. Fair value of financial instruments

The Group classifies financial assets by evaluating, among others, whether the asset is quoted or not in an active market. Included
in the evaluation on whether a financial asset is quoted in an active market is the determination of whether quoted prices are readily
and regularly available, and whether those prices represent actual and regularly occurring market transactions conducted on an arm’s
length basis.
Where the fair values of financial assets and financial liabilities recorded on the balance sheet or disclosed in the notes cannot be derived from
active markets, they are determined using a variety of valuation techniques acceptable to the market as alternative valuation approaches
that include the use of mathematical models. The inputs to these models are taken from observable markets where possible, but
where this is not feasible, a degree of judgment is required in establishing fair values. The judgments include considerations of liquidity
and model inputs such as correlation and volatility for longer dated derivatives.
e. HTM financial assets

The classification to HTM financial assets requires significant judgment. In making this judgment, the Group evaluates its intention
and ability to hold such investments to maturity. If the Group fails to keep these investments to maturity other than in certain specific
circumstances - for example, selling an insignificant amount close to maturity - it will be required to reclassify the entire portfolio as part
of AFS financial assets. The investments would therefore be measured at fair value and not at amortized cost.
f. Embedded derivatives
The Group assesses the existence of an embedded derivative when it first becomes a party to the contract and performs reassessment
if there is a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required.
An embedded derivative is separated from the host financial or nonfinancial contract and accounted for as a derivative if all of the following conditions
are met:
• the economic characteristics and risks of the embedded derivative are not closely related to the economic characteristic of the
host contract;
• a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative; and
• the hybrid or combined instrument is not recognized at FVPL.
The Group determines whether a modification to cash flows is significant by considering the extent to which the expected future cash
flows associated with the embedded derivative, the host contract or both have changed and whether the change is significant relative
to the previously expected cash flows on the contract.
Embedded derivatives that are bifurcated from the host contracts are accounted for as financial assets or liabilities at FVPL. Changes
in fair values of embedded derivatives are included in the statement of income. Derivatives are carried as assets when the fair value
is positive and as liabilities when the fair value is negative.
As of December 31, 2014 and 2013, the Group’s investment in preferred shares contains embedded derivatives in the form of an
optional redemption feature. The embedded option together with the preferred shares have been designated by management as at FVPL (Note 8).
g. Operating leases
The Group has entered into commercial property leases on its investment property portfolio. The Group has determined based on the
evaluation of the terms and conditions of the arrangements (i.e., the lease does not transfer the ownership of the asset to the lessee
by the end of the lease term, the lessee has no option to purchase the asset at a price that is expected to be sufficiently lower than the
fair value at the date the option is exercisable and the lease term is not for the major part of the asset’s economic life), that it retains all
the significant risks and rewards of ownership of these properties which are leased out under operating leases.
The Group has also entered into leases on premises it uses for its operations. The Group has determined, based on the evaluation of
the lease agreement, that all significant risks and rewards of ownership of the properties it leases are not transferrable to the Group.
h. Contingencies
The Group is currently involved in various legal proceedings. The estimate of the probable costs for the resolution of these claims has
been developed in consultation with outside counsel handling the Group’s defense in these matters and is based upon an analysis
of potential results. The Group currently does not believe that these proceedings will have a material adverse effect on the financial
statements. It is possible, however, that future results of operations could be materially affected by changes in the estimates or in the
effectiveness of the strategies relating to these proceedings.
Estimates
a. Going concern
The Group’s management has made an assessment of its ability to continue as a going concern and is satisfied that it has the
resources to continue in business for the foreseeable future. Furthermore, management is not aware of any material uncertainties that
may cast significant doubt upon the Group’s ability to continue as going concern. Therefore, the financial statements continue to be
prepared on a going concern basis.
b. Fair value of financial instruments

The fair values of financial instruments that are not quoted in active markets are determined by using valuation techniques. Where
valuation techniques (e.g., financial models) are used to determine fair values, they are validated and periodically reviewed by qualified
personnel independent of the area that created them. All financial models are certified before they are used and are calibrated to ensure
that outputs reflect actual data and comparative market prices. To the extent practical, the financial models use only observable data,
however, areas such as credit risk (both own and counterparty), volatilities and correlations require management to make estimates.
Changes in assumptions about these factors could affect reported fair value of financial instruments (Note 5).
c. Credit losses on loans and receivables

The Group reviews its loans and receivables at each reporting date to assess whether an allowance for credit losses should be
recorded in the balance sheet and any changes thereto in the statement of income. In particular, judgment by management is required
in the estimation of the amount and timing of future cash flows when determining the level of allowance required. Such estimates are
based on assumptions about a number of factors. Actual results may also differ, resulting in future changes to the allowance.
In addition to specific allowance against individually significant loans and receivables, the Group also makes a collective impairment
assessment on exposures which, although not specifically identified as requiring a specific allowance, have a greater risk of default
than when originally granted. The resulting collective allowance is based on any deterioration in the internal rating of the loan or
investment since it was granted or acquired. These internal ratings take into consideration factors such as any deterioration in country
risk, industry, and technological obsolescence, as well as identified structural weaknesses or deterioration in cash flows.
The carrying values of loans and receivables and the related allowance for credit losses of the Group and the Parent Company are
disclosed in Notes 9 and 15.
d. Impairment of AFS equity investments

The Group treats AFS equity investments as impaired when there has been a significant or prolonged decline in the fair values below
their costs or where other objective evidence of impairment exists. The determination of what is ‘significant’ or ‘prolonged’ requires
judgment. The Group treats ‘significant’ generally as 20.00% or more of the original cost of investment, and ‘prolonged’ as greater
than 12 months. In addition, the Group evaluates other factors, including normal volatility in share price for quoted equities and future
cash flows and discount factors for unquoted equities.
The carrying values of AFS equity investments and the related allowance for impairment of the Group and the Parent Company are
disclosed in Notes 8 and 15.
e. Impairment of HTM and AFS debt investments

The Group determines that AFS debt investments are impaired based on the same criteria as loans and receivables.
As of December 31, 2014 and 2013, HTM and AFS debt investments were unimpaired. The carrying values of HTM and AFS debt
investments are disclosed in Note 8.
f. Estimated useful lives of bank premises, furniture, fixture and equipment, and investment properties
The Group estimates the useful lives of its bank premises, furniture, fixture and equipment, and investment properties. These estimates are reviewed
periodically to ensure that the period of depreciation and amortization are consistent with the expected pattern of economic benefits from the items
of bank premises, furniture, fixture and equipment, and investment properties.
A reduction in the estimated useful lives of bank premises, furniture, fixture and equipment, and investment properties would increase
the recorded depreciation and amortization expense and decrease noncurrent assets. The estimated useful lives of bank premises,
furniture, fixture and equipment, and investment properties are disclosed in Note 2.
g. Impairment on investments in subsidiaries and associates and other nonfinancial assets

The Parent Company assesses impairment on its investments in subsidiaries and associate whenever events or changes in
circumstances indicate that the carrying amount of the asset may not be recoverable. Among others, the factors that the Parent
Company considers important which could trigger an impairment review on its investments in subsidiaries and associate include the
following:
• deteriorating or poor financial condition;

• recurring net losses; and
• significant changes on the technological, market, economic, or legal environment which had an adverse effect on the subsidiary
or associate during the period or in the near future, in which the subsidiary operates.
The Group also assesses impairment on its nonfinancial assets (e.g., investment properties and bank premises, furniture, fixtures and
equipment) and considers the following impairment indicators:
• significant underperformance relative to expected historical or projected future operating results;

• significant changes in the manner of use of the acquired assets or the strategy for overall business; and
• significant negative industry or economic trends.
An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. Except for investment
properties where recoverable amount is determined based on fair value less cost to sell, the recoverable amount of all other nonfinancial
assets is determined based on the asset’s value in use computation which considers the present value of estimated future cash flows
expected to be generated from the continued use of the asset. The Group is required to make estimates and assumptions that can
materially affect the carrying amount of the asset being assessed.
The carrying values of the Group’s investments in subsidiaries and associate and other nonfinancial assets are disclosed in Notes 10,
11 and 12, respectively.
h. Impairment of goodwill and branch licenses

The Group conducts an annual review for any impairment in the value of goodwill and branch licenses. Goodwill and branch licenses
are written down for impairment where the net present value of the forecasted future cash flows from the business is insufficient to
support their carrying value. The Group estimates the discount rate used for the computation of the net present value by reference
to industry cost of capital. Future cash flows from the business are estimated based on the theoretical annual income of the CGUs.
Average growth rate is derived from the average increase in annual income of the CGUs during the last 5 years. The recoverable
amount of the CGU is determined based on a value-in-use calculation using cash flow projections from financial budgets approved by
senior management covering a five-year period. The pre-tax discount rate applied to cash flow projections is 9.87% and 12.05% in
2014 and 2013, respectively, for the branch licenses and goodwill arising from the acquisition of CBSI and 9.47% in 2014 for the branch
licenses arising from the acquisition of Unity Bank. Key assumptions in value-in-use calculation of CGUs are most sensitive to discount
rates and growth rates used to project cash flows.
The carrying values of the Group’s goodwill and branch licenses are disclosed in Note 13.
i. Net plan assets and retirement expense

The determination of the Group’s net plan assets and annual retirement expense is dependent on the selection of certain assumptions
used in calculating such amounts. These assumptions include, among others, discount rates, and salary increase.
The assumed discount rates were determined using the market yields on Philippine government bonds with terms consistent with
the expected employee benefit payout as of the balance sheets date. Refer to Note 23 for the details on the assumptions used in the
calculation.
The present value of the retirement obligation and fair value of plan assets are disclosed in Note 23.
j. Recognition of deferred income taxes

Deferred tax assets are recognized for all unused tax losses to the extent that it is probable that taxable profit will be available against
which the losses can be utilized. Management discretion is required to determine the amount of deferred tax assets that can be
recognized, based on the forecasted level of future taxable profits and the related future tax planning strategies.
The Group believes it will be able to generate sufficient taxable income in the future to utilize its recorded deferred tax assets. Taxable
income is sourced mainly from interest income from lending activities and earnings from service charge, fees, commissions and trust
activities.
The recognized and unrecognized deferred tax assets are disclosed in Note 26.
4. FINANCIAL INSTRUMENT CATEGORIES
The following table presents the total carrying amount of the Group’s and the Parent Company’s financial instruments per category:

2014 2013 2014 2013
Financial assets
Cash and other cash items P10,734,059,421 P7,281,640,616 P9,295,129,845 P7,035,251,105
Financial assets at FVPL 8,440,698,688 10,421,423,053 8,012,435,288 10,421,423,053
AFS financial assets 38,476,852,312 44,349,256,775 37,075,237,960 43,196,190,593
HTM financial assets 12,109,343,604 12,150,546,829 11,353,787,827 12,122,589,213
Loans and receivables:
Due from BSP 67,451,647,883 78,968,132,522 60,543,866,682 75,678,312,048
Due from other banks 17,552,823,222 23,885,538,128 15,836,701,053 23,215,575,357
Interbank loans receivable 223,600,000 – 223,600,000 –
Loans and receivables 290,418,729,517 220,540,902,915 245,257,220,870 210,762,269,411
Accrued interest receivable 2,236,980,535 1,899,408,789 1,910,677,425 1,801,594,853
Other assets* 4,210,193,764 2,605,330,259 2,077,964,151 2,355,729,934
382,093,974,921 327,899,312,613 325,850,030,181 313,813,481,603
Total financial assets P451,854,928,946 P402,102,179,886 P391,586,621,101 P386,588,935,567
* Other assets exclude net plan assets, creditable withholding taxes and miscellaneous nonfinancial assets (Note 14).

2014 2013 2014 2013
Other financial liabilities:
Deposit liabilities P399,301,544,058 P354,268,202,680 P341,084,634,212 P339,831,853,487
Bills payable 6,320,579,549 8,299,194,525 5,177,600,839 8,299,194,525
Manager’s checks 1,221,394,875 859,892,248 822,179,038 704,488,259
Accrued interest and other expenses* 553,809,803 548,272,803 293,850,152 498,286,297
Subordinated debt 1,188,761,984 – – –
Other liabilities** 3,228,576,293 3,054,871,530 2,115,168,292 2,722,643,351
411,814,666,562 367,030,433,786 349,493,432,533 352,056,465,919
Financial liabilities at FVPL:
Derivative liabilities 101,609,941 154,808,366 101,609,941 154,808,366
Total financial liabilities P411,916,276,503 P367,185,242,152 P349,595,042,474 P352,211,274,285
*Accrued interest and other expenses exclude accrued payable for employee benefits, accrued taxes and other licenses, and accrued
lease payable (Note 18).
** Other liabilities exclude withholding taxes payable and retirement liabilities (Note 19).
5. FAIR VALUE MEASUREMENT
The Group has assets and liabilities in the consolidated balance sheets that are measured at fair value on a recurring and non-recurring
basis after initial recognition. Recurring fair value measurements are those that another PFRS requires or permits to be recognized in
the consolidated balance sheet at the end of each financial reporting period. These include financial assets and liabilities at FVPL and
AFS financial assets. Non-recurring fair value measurements are those that another PFRS requires or permits to be recognized in the
consolidated balance sheet in particular circumstances. For example, PFRS 5 requires an entity to measure an asset held for sale at the
lower of its carrying amount and fair value less costs to sell. Since the asset’s fair value less costs to sell is only recognized in the balance
sheet when it is lower than its carrying amount, that fair value measurement is non-recurring.
As of December 31, 2014 and 2013, except for the following financial instruments, the carrying values of the Group’s financial assets and
liabilities as reflected in the balance sheets and related notes approximate their respective fair values:
Consolidated
2014 2013
Carrying Value Fair Value Carrying Value Fair Value
Financial Assets
HTM financial assets:
Government bonds P11,754,049,239 P13,214,633,880 P11,800,868,261 P13,777,054,471
Private bonds 355,294,365 394,752,254 349,678,568 403,498,491
Corporate and commercial loans 234,134,056,334 236,479,681,990 180,577,431,460 181,699,876,526
Consumer loans 42,040,196,042 42,006,979,768 28,820,536,954 31,178,193,986
Trade-related loans 13,961,117,215 14,282,127,181 11,042,819,939 11,447,877,620
Others 283,359,926 190,151,134 100,114,562 103,584,257
Sales contracts receivable 1,233,338,602 1,217,094,254 474,299,468 488,640,974
Financial Liabilities
Deposit liabilities 399,301,544,058 388,897,198,467 354,268,202,680 349,841,938,319
Bills payable 6,320,579,549 6,219,514,787 8,299,194,525 8,086,926,720
Subordinated debt 1,188,761,984 1,160,252,996 − −
Parent Company
2014 2013
Carrying Value Fair Value Carrying Value Fair Value
Financial Assets
HTM financial assets:
Government bonds P10,998,493,462 P12,429,750,442 P11,772,910,645 P13,749,096,855
Private bonds 355,294,365 394,752,254 349,678,568 403,498,491
Corporate and commercial loans 206,096,457,910 206,200,831,267 176,863,670,106 177,900,721,066
Consumer loans 26,764,112,902 28,188,018,241 22,765,855,817 23,148,845,237
Trade-related loans 12,315,856,740 12,555,689,889 11,042,819,939 11,447,877,620
Others 80,793,318 81,899,320 89,923,549 93,496,275
Sales contracts receivable 352,360,682 380,300,248 403,784,273 415,948,066
Deposit liabilities 341,084,634,212 330,299,420,213 339,831,853,487 334,990,850,792
Bills payable 5,177,600,839 5,075,936,018 8,299,194,525 8,086,926,720
The methods and assumptions used by the Group and Parent Company in estimating the fair values of the financial instruments
follow:
Cash and other cash items, due from BSP and other banks, interbank loans receivable and accrued interest receivable - The carrying
amounts approximate their fair values in view of the relatively short-term maturities of these instruments.
Debt securities - Fair values are generally based on quoted market prices. If the market prices are not readily available, fair values
are estimated using either values obtained from independent parties offering pricing services or adjusted quoted market prices of
comparable investments or using the discounted cash flow methodology.
Equity securities - For publicly traded equity securities, fair values are based on quoted prices published in the Philippine equity
markets. For unquoted equity securities for which no reliable basis for fair value measurement is available, these are carried at cost
net of impairment, if any.
Loans and receivables and sales contracts receivable (SCR) included in other assets - Fair values of loans and receivables and SCR
are estimated using the discounted cash flow methodology, where future cash flows are discounted using the Group’s current
incremental lending rates for similar types of loans and receivables.
Accounts receivable, returned checks and other cash items (RCOCI) and other financial assets included in other assets - Quoted
market prices are not readily available for these assets. These are reported at cost and are not significant in relation to the Group’s
total portfolio of securities.
Derivative instruments (included under FVPL) - Fair values are estimated based on quoted market prices provided by independent
parties or accepted valuation models (either based on discounted cash flow techniques or option pricing models, as applicable).
Derivative assets and liabilities- Fair values are calculated by reference to the prevailing interest differential and spot exchange rate as
of the balance sheet date, taking into account the remaining term to maturity of the derivative assets and liabilities.
Bifurcated embedded derivatives (included under Derivative assets) - Fair values are estimated based on a valuation model from
Bloomberg using inputs provided by counterparty banks.
Deposit liabilities (time, demand and savings deposits) - Fair values of time deposits are estimated using the discounted cash flow
methodology, where future cash flows are discounted using the Group’s current incremental borrowing rates for similar borrowings
and with maturities consistent with those remaining for the liability being valued. For demand and savings deposits, carrying amounts
approximate fair values considering that these are currently due and demandable.
Bills payable - Fair values are estimated using the discounted cash flow methodology, where future cash flows are discounted using
the current incremental borrowing rates for similar borrowings and with maturities consistent with those remaining for the liability
being valued.
Manager’s checks and accrued interest and other expenses - Carrying amounts approximate fair values due to the short-term nature
of the accounts.
Subordinated debt - Fair value is estimated using the discounted cash flow methodology using current credit spread for similar types
of borrowings.
Other liabilities - Quoted market prices are not readily available for these liabilities. These are reported at cost and are not significant
in relation to the Group’s total portfolio.
Fair Value Hierarchy

The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1: quoted prices in active markets for identical assets or liabilities;

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as prices) or
indirectly (derived from prices); and
Level 3: inputs that are not based on observable market data or unobservable inputs.
As of December 31, 2014 and 2013, the fair value hierarchy of the Group’s and Parent Company’s assets and liabilities are presented
below:
Consolidated
2014
Level 1 Level 2 Level 3 Total
Recurring fair value measurements(a)
Financial assets at FVPL (Note 8)
Held-for-trading:
Treasury notes P641,896,570 P1,668,188,799 P− P2,310,085,369
Government bonds 600,848,520 323,999,667 − 924,848,187
Private bonds and commercial 997,631,752 − − 997,631,752
Treasury bills papers − 71,826 − 71,826
Financial assets designated at FVPL 3,918,504,492 − − 3,918,504,492
Derivative assets − 289,557,062 − 289,557,062
AFS financial assets (Note 8)
Government bonds 16,640,650,848 18,843,398,424 − 35,484,049,272
Private bonds and commercial papers 2,277,687,388 529,169,134 − 2,806,856,522
Quoted equity shares 150,123,537 − − 150,123,537
25,227,343,107 21,654,384,912 − 46,881,728,019
Financial liabilities at FVPL
Derivative liabilities − 101,609,941 − 101,609,941
− 101,609,941 − 101,609,941
Fair values of assets carried at
amortized cost/cost(a)
HTM financial assets
Government bonds 13,167,729,996 46,903,884 − 13,214,633,880
Private bonds 394,752,254 − − 394,752,254
Loans and receivables
Corporate and commercial loans − − 236,479,681,990 236,479,681,990
Consumer loans − − 42,006,979,768 42,006,979,768
Trade-related loans − − 14,282,127,181 14,282,127,181
Others − − 190,151,134 190,151,134
Sales contracts receivable − − 1,217,094,254 1,217,094,254
Investment properties(b)
Land − − 7,472,845,653 7,472,845,653
Buildings and improvements − − 2,368,784,747 2,368,784,747
13,562,482,250 46,903,884 304,017,664,727 317,627,050,861
Fair values of liabilities carried at
amortized cost(a)
Deposit liabilities − − 388,897,198,467 388,897,198,467
Bills payable − − 6,219,514,787 6,219,514,787
Subordinated debt − − 1,160,252,996 1,160,252,996
P− P− P396,276,966,250 P396,276,966,250
(a) valued as of December 31, 2014
(b) valued at various dates in 2014 and 2013
Consolidated
2013
Held-for-trading:
Government bonds P2,289,626,987 P− P− P2,289,626,987
Treasury notes 651,643,244 1,234,324,938 − 1,885,968,182
Private bonds and commercial papers 893,905,336 − − 893,905,336
AFS financial assets (Note 8)
Quoted equity shares 150,459,385 – − 150,459,385
14,870,656,773 39,871,240,919 − 54,741,897,692
− 154,808,366 − 154,808,366
Government bonds 13,777,054,471 − − 13,777,054,471
Private bonds 403,498,491 − − 403,498,491
Consumer loans − − 31,178,193,986 31,178,193,986
Others − − 103,584,257 103,584,257
Sales contracts receivable − − 488,640,974 488,640,974
Land − − 5,083,109,886 5,083,109,886
14,180,552,962 − 231,477,235,382 245,657,788,344
amortized cost(a)
Bills payable − − 8,086,926,720 8,086,926,720
P− P− P357,928,865,039 P357,928,865,039
Parent Company
2014
Held-for-trading:
Treasury notes P603,230,922 P1,389,542,863 P− P1,992,773,785
Government bonds 600,141,651 213,754,720 − 813,896,371
Private bonds and commercial papers 997,631,752 − − 997,631,752
Treasury bills − 71,826 − 71,826
AFS financial assets (Note 8):
Quoted equity shares 149,358,344 − − 149,358,344
23,855,903,641 21,212,356,902 − 45,068,260,543
P− P101,609,941 P− P101,609,941
(Forward)
Parent Company
2014
Private bonds 394,752,254 − − 394,752,254
Consumer loans − − 28,188,018,241 28,188,018,241
Others − − 81,899,320 81,899,320
Sales contracts receivable − − 380,300,248 380,300,248
Land − − 4,454,157,743 4,454,157,743
12,824,502,696 − 253,131,760,580 265,956,263,276
amortized cost
Bills payable − − 5,075,936,018 5,075,936,018
P− P− P335,375,356,231 P335,375,356,231
Parent Company
2013
Held-for-trading:
Treasury notes 651,643,244 1,234,324,938 − 1,885,968,182
Private bonds and commercial papers 893,905,336 – – 893,905,336
Financial assets designated at FVPL 4,856,408,376 – – 4,856,408,376
Derivative assets – 495,514,172 – 495,514,172
AFS financial assets (Note 8):
Government bonds 1,497,096,370 37,161,774,934 – 38,658,871,304
Private bonds and commercial papers 3,394,861,168 979,626,875 – 4,374,488,043
Quoted equity shares 143,418,541 – – 143,418,541
13,726,960,022 39,871,240,919 – 53,598,200,941
Derivative liabilities − 154,808,366 – 154,808,366
− 154,808,366 – 154,808,366
Government bonds 13,749,096,855 – – 13,749,096,855
Private bonds 403,498,491 – – 403,498,491
Corporate and commercial loans – – 177,900,721,066 177,900,721,066
Consumer loans – – 23,148,845,237 23,148,845,237
Trade-related loans – – 11,447,877,620 11,447,877,620
Others – – 93,496,275 93,496,275
Sales contracts receivable – – 415,948,066 415,948,066
Land – – 4,894,397,892 4,894,397,892
Buildings and improvements – – 1,288,677,139 1,288,677,139
14,152,595,346 – 219,189,963,295 233,342,558,641
amortized cost
Deposit liabilities – – 334,990,850,792 334,990,850,792
Bills payable – – 8,086,926,720 8,086,926,720
P– P– P343,077,777,512 P343,077,777,512
There were no transfers between Level 1 and Level 2 fair value measurements and no transfers into and out of Level 3 fair value
measurements in 2014 and 2013.
The inputs used in the fair value measurement based on Level 2 are as follows:
Government securities - interpolated rates based on market rates of benchmark securities as of reporting date.
Private bonds and commercial papers - quoted market price of comparable investments with credit risk premium that is insignificant
to the entire fair value measurement.
Derivative assets and liabilities - fair values are calculated by reference to the prevailing interest differential and spot exchange rate as
of the balance sheet date, taking into account the remaining term to maturity of the derivative assets and liabilities.
Inputs used in estimating fair values of financial instruments carried at cost and categorized under level 3 include risk-free rates and
applicable risk premium.
The fair values of the Group’s and Parent Company’s investment properties have been determined by the appraisal method by
independent external and in-house appraisers based on highest and best use of property being appraised. Valuations were derived
on the basis of recent sales of similar properties in the same areas as the investment properties and taking into account the economic
conditions prevailing at the time the valuations were made and comparability of similar properties sold with the property being valued.
The table below summarizes the valuation techniques used and the significant unobservable inputs valuation for each type of
investment properties held by the Group and the Parent Company:
Valuation Techniques Significant Unobservable Inputs

Land Market Data Approach Price per square meter, size, location, shape, time
element and corner influence
Land and Building Market Data Approach and Cost Approach Reproduction Cost New
Description of the valuation techniques and significant unobservable inputs used in the valuation of the Group and the Parent
Company’s investment properties are as follows:
Valuation Techniques
Market Data Approach A process of comparing the subject property being appraised to similar comparable properties
recently sold or being offered for sale.
Cost Approach It is an estimate of the investment required to duplicate the property in its present condition. It is
reached by estimating the value of the building “as if new” and then deducting the depreciated
cost. Fundamental to the Cost Approach is the estimate of Reproduction Cost New of the
improvements.
Significant Unobservable Inputs

Reproduction Cost New The cost to create a virtual replica of the existing structure, employing the same design and similar
building materials.
Size Size of lot in terms of area. Evaluate if the lot size of property or comparable conforms to the
average cut of the lots in the area and estimate the impact of lot size differences on land value.
Shape Particular form or configuration of the lot. A highly irregular shape limits the usable area whereas
an ideal lot configuration maximizes the usable area of the lot which is associated in designing an
improvement which conforms with the highest and best use of the property.
Location Location of comparative properties whether on a Main Road, or secondary road. Road width could
also be a consideration if data is available. As a rule, properties located along a Main Road are
superior to properties located along a secondary road.
Time Element “An adjustment for market conditions is made if general property values have appreciated or
depreciated since the transaction dates due to inflation or deflation or a change in investors’
perceptions of the market over time”. In which case, the current data is superior to historic data.
Discount Generally, asking prices in ads posted for sale are negotiable. Discount is the amount the seller
or developer is willing to deduct from the posted selling price if the transaction will be in cash or
equivalent.
Corner influence Bounded by two (2) roads.

6. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group’s activities are principally related to the profitable use of financial instruments. Risks are inherent in these activities but
are managed by the Group through a rigorous, comprehensive and continuous process of identification, measurement, monitoring
and mitigation of these risks, partly through the effective use of risk and authority limits and thresholds, process controls and
monitoring, and independent controls. As reflected in its corporate actions and organizational improvements, the Group has placed
due importance on expanding and strengthening its risk management process and considers it as a vital component to the Group’s
continuing profitability and financial stability. Central to the Group’s risk management process is its adoption of a risk management
program intended to avoid unnecessary risks, manage and mitigate unavoidable risks and maximize returns from taking acceptable
risks necessary to sustain its business viability and good financial position in the market.
The key financial risks that the Group faces are: credit risk, market risk (i.e. interest rate risk, foreign currency risk and equity price risk)
and liquidity risk. The Group’s risk management objective is primarily focused on controlling and mitigating these risks. The Parent
Company and its subsidiaries manage their respective financial risks separately. The subsidiaries, particularly CBSI and PDB, have
their own risk management processes but are structured similar to that of the Parent Company. To a certain extent, the respective
risk management programs and objectives are the same across the Group. The gravity of the risks, the magnitude of the financial
instruments involved, and regulatory requirements are primary considerations to the scope and extent of the risk management
processes put in place for the subsidiaries.
Risk Management Structure

The BOD of the Parent Company is ultimately responsible for the oversight of the Parent Company’s risk management process. On
the other hand, the risk management processes of the subsidiaries are the separate responsibilities of their respective BODs. The
BOD of the Parent Company created a separate board-level independent committee with explicit authority and responsibility for
managing and monitoring risks.
The BOD has delegated to the Risk Management Committee (RMC) the implementation of the risk management process which
includes, among others, the development of various risk strategies and principles, control guidelines policies and procedures,
implementation of risk measurement tools, monitoring of key risk indicators, and the imposition and monitoring of risk limits and
thresholds. The RMC is composed of four members of the BOD.
The Risk Management Group (RMG) is the direct support of the RMC in the day-to-day risk management and the implementation of
the risk management strategies approved by the RMC. The implementation cuts across all departments of the Parent Company and
involves all of the Parent Company’s financial instruments, whether “on-books” or “off-books.” The RMG is likewise responsible
for monitoring the implementation of specific risk control procedures and enforcing compliance thereto. The RMG is also directly
involved in the day-to-day risk measurement and monitoring to make sure that the Parent Company, in its transactions and dealings,
engages only in acceptable and manageable financial risks. The RMG also ensures that risk measurements are accurately and
completely captured on a timely basis in the management reporting system of the Parent Company. The RMG regularly reports the
results of the risk measurements to the RMC. The RMG is headed by the Chief Risk Officer (CRO).
Apart from RMG, each business unit has created and put in place various process controls which ensure that all the external and
internal transactions and dealings of the unit are in compliance with the unit’s risk management objectives.
The Internal Audit Division also plays a crucial role in risk management primarily because it is independent of the business units and
reports exclusively to the Audit Committee which, in turn, is comprised of independent directors. The Internal Audit Division focuses
on ensuring that adequate controls are in place and on monitoring compliance to controls. The regular audit covers all processes and
controls, including those under the risk management framework handled by the RMG. The audit of these processes and controls is
undertaken at least annually. The audit results and exceptions, including recommendations for their resolution or improvement, are
discussed initially with the business units concerned before these are presented to the Audit Committee.
Risk Management Reporting

The CRO and other members of the RMG report to the RMC and are a resource to the Management Committee (ManCom) on a
monthly and a weekly basis, respectively. The CRO reports on key risk indicators and specific risk management issues that would
need resolution from top management. This is undertaken after the risk issues and key risk indicators have been discussed with the
business units concerned.
The key risk indicators were formulated on the basis of the financial risks faced by the Parent Company. The key risk indicators
contain information from all business units that provide measurements on the level of the risks taken by the Parent Company in its
products, transactions and financial structure. Among others, the report on key risk indicators includes information on the Parent
Company’s aggregate credit exposure, credit metric forecasts, hold limit exceptions, Value-at-Risk (VaR) analysis, utilization of
market and credit limits, liquidity ratios, overall loan loss provisioning and risk profile changes. Loan loss provisioning and credit limit
utilization are, however, discussed in more detail in the Credit Committee. On a monthly basis, detailed reporting of single-name
and sectoral concentration is included in the discussion with the RMC. On the other hand, the Chief Internal Auditor reports to the
Audit Committee on a monthly basis on the results of branch or business unit audits and for the resolution of pending but important
internal audit issues.
In 2013, the Parent Company implemented the Asset and Liability Management (ALM) system for liquidity risk and interest rate risk,
which greatly improved its risk measurement and reporting. In 2014, the Parent Company acquired a new market risk management
system to enhance its risk measurement and reporting of market risk metrics.
Risk Mitigation
The Parent Company uses derivatives to manage exposures in its financial instruments resulting from changes in interest rates and
foreign currencies exposures. However, the nature and extent of use of these financial instruments to mitigate risks are limited to
those allowed by the BSP for the Parent Company and its subsidiaries.
To further mitigate risks throughout its different business units, the Parent Company formulates risk management policies and
continues to improve its existing policies. These policies further serve as the framework and set of guidelines in the creation or
revisions of operating policies and manuals for each business unit. In the process design and implementation, preventive controls are
preferred over detection controls. Clear delineation of responsibilities and separation of incompatible duties among officers and staff,
as well as, among business units are reiterated in these policies. To the extent possible, reporting and accounting responsibilities
are segregated from units directly involved in operations and front line activities (i.e., players must not be scorers). This is to improve
the credibility and accuracy of management information. Any inconsistencies in the operating policies and manuals with the risk
framework created by the RMG are taken up and resolved in the RMC and ManCom.
Based on the approved Operational Risk Assessment Program, RMG spearheaded the bankwide (all Head Office units and branches)
risk identification and self-assessment process. This would enable determination of priority risk areas, assessment of mitigating
controls in place, and institutionalization of additional measures to ensure a controlled operating environment. RMG was also
mandated to maintain and update the Parent Company’s Centralized Loss Database wherein all reported incidents of losses shall be
encoded to enable assessment of weaknesses in the processes and come up with viable improvements to avoid recurrence.
Monitoring and controlling risks are primarily performed based on various limits and thresholds established by the top management
covering the Group’s transactions and dealings. These limits and thresholds reflect the Group’s business strategies and market
environment, as well as, the levels of risks that the Group is willing to tolerate, with additional emphasis on selected industries. In
addition, the Parent Company monitors and measures the overall risk-bearing capacity in relation to the aggregate risk exposure
across all risk types and activities.
The Group’s Management identified the need for an ALM application to strategically manage risks arising from mismatches between
the Parent Company’s assets and liabilities, particularly in the areas of liquidity risk and interest rate risk. An ALM would support
high-level decisions with regard to funds pricing and resource allocation.
The ALM system project began in 2011. The liquidity and interest rate risk modules used for the automated generation of the
Maximum Cumulative Outflow (MCO) and Earnings-at-Risk reports were successfully implemented in 2013. The Funds Transfer
Pricing modules of the Treasury Group and Corporate Planning Group were implemented in 2014.
For the measurement of market risk exposures, the Bank uses Historical Simulation VaR approach for derivative instruments, including
IRS, foreign exchange swaps and forwards, while Parametric VaR is used for fixed income securities products.
The Parent Company is in the process of testing and implementing a new market risk system module to support its trading and
derivative activities.
BSP issued Circular No. 639 dated January 15, 2009 which mandated the use of the Internal Capital Adequacy Assessment Process
(ICAAP) by all universal and commercials banks to determine their minimum required capital relative to their business risk exposures.
In this regard, the Board approved the engagement of the services of a consultant to assist in the bank-wide implementation and
embedding of the ICAAP, as provided for under Pillar 2 of Basel II and BSP Circular No. 639.
On January 29, 2014, the BOD affirmed that the priority risks set in the 2009 Risk Self-assessment Survey and voting conducted
among selected members of the BOD and Senior Management remain the same.
The Parent Company had submitted its ICAAP document, in compliance with BSP requirements on January 30, 2014. The document
disclosed that the Parent Company has an appropriate level of internal capital relative to the Group’s risk profile.
For the ICAAP document submitted on January 30, 2014 and January 30, 2015, the Parent Company retained the Pillar 1 Plus
approach using the Pillar 1 capital as the baseline. The process of allocating capital for all types of risks above the Pillar 1 capital
levels is now primarily based on the results of the Integrated Stress Test (IST). The adoption of the IST allows the Parent Company
to quantify its overall vulnerability to market shocks and operational losses in a collective manner driven by events rather than in silo.
The capital assessment in the document discloses that the Group and the Parent Company has appropriate and sufficient level of
internal capital.
Credit Risk
Credit Risk and Concentration of Assets and Liabilities and Off-Balance Sheet Items
Credit risk is the risk of financial loss on account of a counterparty to a financial product failing to honor its obligation. The Group faces
potential credit risks every time it extends funds to borrowers, commits funds to counterparties, guarantees the paying performance
of its clients, invests funds to issuers (i.e., investment securities issued by either sovereign or corporate entities) or enters into
either market-traded or over-the-counter derivatives, through implied or actual contractual agreements (i.e., on or off-balance sheet
exposures). The Group manages its credit risk at various levels (i.e., strategic level, portfolio level down to individual credit or
transaction).
The Group established risk limits and thresholds for purposes of monitoring and managing credit risk from individual counterparties
and/or groups of counterparties, as well as industry divisions. It also conducts periodical assessment of the creditworthiness of its
counterparties. In addition, the Group obtains collateral where appropriate, enters into master netting agreements and collateral
arrangements with counterparties, and limits the duration of exposures.
In compliance with BSP requirements, the Group established an internal Credit Risk Rating System (CRRS) for the purpose of
measuring credit risk for corporate borrowers in a consistent manner, as accurately as possible, and thereafter uses the risk
information for business and financial decision making. The CRRS covers corporate borrowers with total assets, total facilities, or
total credit exposures amounting to 15.00 million and above.
Further, the CRRS was designed within the technical requirements defined under BSP Circular No. 439. It has two components,
namely: a) Borrower Risk Rating which provides an assessment of the creditworthiness of the borrower, without considering the
proposed facility and security arrangements, and b) Loan Exposure Rating which provides an assessment of the proposed facilities as
mitigated or enhanced by security arrangements. The CRRS rating scale consists of ten grades, six of which fall under unclassified
accounts, with the remaining four falling under classified accounts in accordance with regulatory provisioning guidelines.
On March 5, 2014, the Parent Company approved the engagement of a third-party consultant for the quantitative and qualitative
validation of the internal CRRS. Said engagement was completed in December 2014 and results show the need to proceed to the
next phase of the engagement, which is the recalibration of the internal CRRS. If this recommendation is approved by the BOD,
Phase 2 will start by the 1st Half of 2015.
Aside from the internal CRRS, the Parent Company launched in 2011 the Borrower Credit Score (BCS), a credit scoring system
designed for retail small and medium entities and individual loan accounts. The BCS is currently implemented on a test run basis.
The scheduled live implementation was deferred after the surface-level review of the model showed a need for recalibration. To
further validate the results of the review, a statistical validation of the BCS shall be done in 2015 using the same methodology applied
to the validation of the internal CRRS. If the results of the statistical validation confirm the weakness in the predictive capability of
the model, then the BCS shall be recalibrated in 2016.
In 2014, the Parent Bank also started working on a unified credit risk rating model architecture for the Parent Bank and the Subsidiary
Banks. Primary objectives of this initiative is: a) to have a consistent methodology in evaluating a borrower’s credit-worthiness across
the organization; b) to provide a clear direction on the development of credit risk models and ensure that the efforts of the Parent and
Subsidiary Banks are aligned.
Excessive Risk Concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographic
region, or have similar economic features that would cause their ability to meet contractual obligations to be similarly affected
by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Parent Company’s
performance to developments affecting a particular industry or geographical location.
In order to avoid excessive concentrations of risk, the Parent Company’s policies and procedures include specific guidelines focusing
on maintaining a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.
The distribution of the Group’s and Parent Company’s assets, liabilities, and credit commitment items (Note 29) by geographic region
as of December 31, 2014 and 2013 (in millions) follows:
Consolidated
2014 2013
Credit Credit
Assets Liabilities Commitments Assets Liabilities Commitments
Geographic Region:
Philippines P418,167 P408,561 P145,489 P372,203 P359,930 P147,608
Asia 4,806 329 3,922 4,132 183 3,951
Europe 1,032 2,041 936 1,430 6,123 659
United States 27,501 984 2,180 23,521 943 592
Others 349 1 20 816 6 27
P451,855 P411,916 P152,547 P402,102 P367,185 P152,837
Parent Company
2014 2013
Credit Credit
Assets Liabilities Commitments Assets Liabilities Commitments
Geographic Region:
Philippines P357,899 P346,240 P136,468 P356,690 P344,956 P143,633
Asia 4,806 329 3,922 4,132 183 3,951
Europe 1,032 2,041 936 1,430 6,123 659
United States 27,501 984 2,180 23,521 943 592
Others 349 1 19 816 6 27
P391,587 P349,595 P143,525 P386,589 P352,211 P148,862
Information on credit concentration as to industry of loans and receivables is presented in Note 9 to the financial statements.
Maximum exposure to credit risk

The table below provides the analysis of the maximum exposure to credit risk of the Group and the Parent Company’s financial
instruments, excluding those where the carrying values as reflected in the balance sheets and related notes already represent
the financial instrument’s maximum exposure to credit risk, before and after taking into account collateral held or other credit
enhancements:
Consolidated
2014
Financial effect
of collateral or
Gross maximum credit
exposure Net exposure enhancement
Credit risk exposure relating to on-balance sheet items
are as follows:
Corporate and commercial lending P234,134,056,334 P179,607,068,399 P54,526,987,935
Consumer lending 42,040,196,042 17,273,258,999 24,766,937,043
Trade-related lending 13,961,117,215 13,105,846,182 855,271,033
Others 283,359,926 92,559,791 190,800,135
290,418,729,517 210,078,733,371 80,339,996,146
Sales contracts receivable 1,233,338,602 – 1,233,338,602
P291,652,068,119 P210,078,733,371 P81,573,334,748
Consolidated
2013
Financial effect
of collateral or
are as follows:
Trade-related lending 11,042,819,939 9,673,433,911 1,369,386,028
Others 100,114,562 29,921,415 70,193,147
220,540,902,915 193,335,172,079 27,205,730,836
Sales contracts receivable 474,299,468 – 474,299,468
P221,015,202,383 P193,335,172,079 P27,680,030,304
Parent Company
2014
Financial effect
of collateral or
are as follows:
Trade-related lending 12,315,856,740 11,638,435,498 677,421,242
Others 80,793,318 20,432,790 60,360,528
245,257,220,870 200,559,325,868 44,697,895,002
P245,609,581,552 P200,559,325,868 P45,050,255,684
Parent Company
2013
Financial effect
of collateral or
are as follows:
Trade-related lending 11,042,819,939 9,673,433,911 1,369,386,028
Others 89,923,549 19,730,402 70,193,147
210,762,269,411 185,203,328,595 25,558,940,816
P211,166,053,684 P185,203,328,595 P25,962,725,089
For the Group, the fair values of collateral held for loans and receivables and sales contracts receivable amounted to P130.64 billion
and P2.05 billion, respectively, as of December 31, 2014 and P59.09 billion and P1.11 billion, respectively, as of December 31, 2013.
For the Parent Company, the fair values of collateral held for loans and receivables and sales contracts receivable amounted to
P94.22 billion and P1.07 billion, respectively, as of December 31, 2014 and P57.28 billion and P0.99 billion, respectively, as of
December 31, 2013.
Credit risk, in respect of derivative financial products, is limited to those with positive fair values, which are included under financial
assets at FVPL (Note 8). As a result, the maximum credit risk, without taking into account the fair value of any collateral and netting
agreements, is limited to the amounts on the balance sheet plus commitments to customers such as unused commercial letters of
credit, outstanding guarantees and others as disclosed in Note 29 to the financial statements.
Collateral and other credit enhancements

The amount and type of collateral required depends on an assessment of the credit risk of the counterparty. Guidelines are
implemented with regard to the acceptability of types of collateral and valuation parameters.
The main types of collateral obtained are as follows:

• For securities lending and reverse repurchase transactions - cash or securities
• For consumer lending - real estate and chattel over vehicle
• For corporate lending and commercial lending- real estate, chattel over properties, assignment of deposits, shares of stocks,
bonds, and guarantees
Management requests additional collateral in accordance with the underlying agreement and takes into consideration the market
value of collateral during its review of the adequacy of allowance for credit losses.
It is the Group’s policy to dispose of repossessed properties in an orderly fashion. The proceeds are used to reduce or repay the
outstanding claim. In most cases, the Parent Company does not occupy repossessed properties for business use.
Collaterals foreclosed in 2014 and 2013 and are still held by the Group as of December 31, 2014 and 2013 amounted to P1.04 billion
and P362.38 million, respectively. These collaterals comprised of real estate properties and stock securities.
Credit quality per class of financial assets

The credit quality of financial assets is managed by the Group using an internal credit rating system for the purpose of measuring
credit risk in a consistent manner as accurately as possible. The model on risk ratings is assessed regularly because the Group
uses this information as a tool for business and financial decision making. Aside from the periodic review by the Bank’s Internal
Audit Group, the Bank likewise engaged the services of third-party consultants in 2013 and 2014 for purposes of conducting an
independent validation of the credit risk rating model.
It is the Parent Company’s policy to maintain accurate and consistent risk ratings across the credit portfolio. This facilitates focused
management of the applicable risks and the comparison of credit exposures across all lines of business, geographic regions and
products. The rating system is supported by a variety of financial analytics, combined with processed market information to provide
the main inputs for the measurement of counterparty risk. All internal risk ratings are tailored to the various categories and are derived
in accordance with the Parent Company’s rating policy. The attributable risk ratings are assessed and monitored regularly. The
standard credit rating equivalent grades are relevant only for certain exposures in each risk rating class.
The following table shows the description of the internal CRRS grade:
CRRS Grade Description

1 Excellent
2 Strong
3 Good
4 Satisfactory
5 Acceptable
6 Watchlist
7 Especially Mentioned
8 Substandard
9 Doubtful
10 Loss
The credit grades are defined as follows:
Excellent - This category applies to a borrower with a very low probability of going into default in the coming year. The borrower has
a high degree of stability, substance, and diversity. It has access to raise substantial amounts of funds through the public markets at
any time. The borrower has a very strong debt service capacity and a conservative use of balance sheet leverage. The track record
in profit terms is very good. The borrower is of highest quality under virtually all economic conditions.
Strong - This category applies to a borrower with a low probability of going into default in the coming year. The borrower normally
has a comfortable degree of stability, substance, and diversity. Under normal market conditions, the borrower in this category has
good access to public markets to raise funds. The borrower has a strong market and financial position with a history of successful
performance. The overall debt service capacity as measured by cash flow to total debt service is deemed very strong; the critical
balance sheet ratios (vis-à-vis industry) are conservative.
Good - This category covers the smaller corporations with limited access to public capital markets or access to alternative financial
markets. This access is however limited to favorable economic and/or market conditions. Typical for this type of borrower is the
combination of comfortable asset protection and acceptable balance sheet structure (vis-à-vis industry). The debt service capacity,
as measured based on cash flows, is strong.
Satisfactory - This category represents the borrower where clear risk elements exist and the probability of default is somewhat
greater. This probability is reflected in volatility of earnings and overall performance. The borrower in this category normally has
limited access to public financial markets. The borrower should be able to withstand normal business cycles, but any prolonged
unfavorable economic period would create deterioration beyond acceptable levels. Typical for this kind of borrower is the combination
of reasonably sound asset and cash flow protection. The debt service capacity as measured by cash flow is deemed adequate. The
borrower has reported profits for the past fiscal year and is expected to report a profit in the current year.
Acceptable - The risk elements for the Parent Company are sufficiently pronounced, although the borrower should still be able
to withstand normal business cycles. Any prolonged unfavorable economic and/or market period would create an immediate
deterioration beyond acceptable levels.
Watchlist - This category represents the borrower for which unfavorable industry or company-specific risk factors represent a concern.
Operating performance and financial strength may be marginal and it is uncertain whether the borrower can attract alternative
sources of financing. The borrower will find it very hard to cope with any significant economic downturn and a default in such a case
is more than a possibility. It includes the borrower where the credit exposure is not a risk of loss at the moment, but the performance
of the borrower has weakened, and unless present trends are reversed, could lead to losses.
Especially Mentioned - This category applies to the borrower that is characterized by a reasonable probability of default, manifested
by some or all the following: (a) evidence of weakness in the borrower’s financial condition or creditworthiness; (b) unacceptable
risk is generated by potential or emerging weaknesses as far as asset protection and/or cash flow is concerned; (c) the borrower
has reached a point where there is a real risk that the borrower’s ability to pay the interest and repay the principal timely could be
jeopardized; (d) the borrower is expected to have financial difficulties and exposure may be at risk. Closer account management
attention is warranted.
Concerted efforts should be made to improve lender’s position (e.g., demanding additional collateral or reduction of account exposure).
These potential weaknesses, if left uncorrected or unmitigated, would affect the repayment of the loan and, thus, increase credit risk
to the Parent Company.
Substandard - This category represents the borrower where one or more of the following factors apply: (a) the collection of principal or
interest becomes questionable regardless of scheduled payment date, by reason of adverse developments on account of a financial,
managerial, economic, or political nature, or by important weaknesses in cover; (b) the probability of default is assessed at up to 50%.
Substandard loans are loans or portions thereof which appear to involve a substantial and unreasonable degree of risk to the Parent
Company because of unfavorable record or unsatisfactory characteristics. There exists in such loans the possibility of future loss to
the Parent Company unless given closer supervision.
Doubtful - This category includes the borrower with “non-performing loan” status or with any portion of interest and/or principal
payment is in arrears for more than ninety (90) days. The borrower is unable or unwilling to service debt over an extended period
of time and near future prospects of orderly debt service is doubtful. Doubtful loans are loans or portions thereof which have the
weaknesses inherent in those classified as “Substandard”, with the added characteristics that existing facts, conditions, and values
make collection or liquidation in full highly improbable and in which substantial loss is probable.
Loss - This category represents the borrower whose prospect for re-establishment of creditworthiness and debt service is remote. It
also applies where the Parent Company will take or has taken title to the assets of the borrower and is preparing a foreclosure and/or
liquidation of the borrower’s business. These loans or portions thereof which are considered uncollectible or worthless and of such
little value that their continuance as bankable assets is not warranted although the loans may have some recovery or salvage value.
The Group’s loans and receivables from customers were classified according to credit quality as follows:
Credit Quality Rating Criteria

Neither Past Due Nor Impaired
High Loans with risk rating of 1 and 2
Standard Loans with risk rating of 3 to 5
Sub-Standard Generally, loans with risk rating of 6 to 8
Past Due or Impaired
Past Due but not Impaired Those that were classified as Past Due per BSP
Impaired guidelines or those that are still in current status but
have objective evidence of impairment; Generally,
loans with risk rating of 9 to 10
The table below shows the Group’s loans and receivables, excluding other receivables (gross allowance for credit losses and unearned
discount) as of December 31, 2014 and 2013 (in millions) classified according to credit quality:
Consolidated
2014
Neither Past Due nor Impaired
Standard Substandard Past Due But Past Due
High Grade Grade Grade Unrated Not Impaired or Impaired Total
Corporate and commercial
lending P33,755 P139,229 P45,132 P14,825 P849 P5,410 P239,200
Consumer lending 13,694 5,598 2,465 19,529 1,770 442 43,498
Trade-related lending 1,860 10,913 1,177 77 19 624 14,670
Others 16 64 – 192 3 8 283
Total P49,325 P155,804 P48,774 P34,623 P2,641 P6,484 P297,651
Consolidated
2013
lending P39,524 P89,964 P37,855 P14,977 P224 P3,353 P185,897
Consumer lending 5,222 3,226 4,034 15,841 885 675 29,883
Trade-related lending 386 9,267 1,332 72 23 698 11,778
Others 10 – – 88 2 – 100
Total P45,142 P102,457 P43,221 P30,978 P1,134 P4,726 P227,658
Parent Company
2014
lending P10,036 P136,558 P44,915 P14,866 P682 P3,882 P210,939
Consumer lending 33 4,421 2,329 19,529 1,272 97 27,681
Others – – – 77 – 4 81
Total P10,289 P151,886 P48,421 P34,549 P1,973 P4,607 P251,725
Parent Company
2013
lending P36,380 P89,542 P37,855 P14,887 P117 P3,186 P181,967
Consumer lending 1,828 3,165 1,351 15,878 884 517 23,623
Others – – – 88 2 – 90
Total P38,594 P101,974 P40,538 P30,925 P1,026 P4,401 P217,458
Depository accounts with the BSP and counterparty banks, Trading and Investment Securities
For these financial assets, outstanding exposure is rated primarily based on external risk rating (i.e. Standard and Poor’s (S&P), otherwise,
rating is based on risk grades by a local rating agency or included under “Unrated”, when the counterparty has no available risk grade.
The external risk rating of the Group’s depository accounts with the BSP and counterparty banks, trading and investment securities, is
grouped as follows:
Credit Quality Rating External Credit Risk Rating Credit Rating Agency
High grade AAA, AA+, AA, AA- S&P
Aaa, Aa1, Aa2, Aa3 Moody’s
AAA, AA+, AA, AA- Fitch
Standard grade A+, A, A-, BBB+, BBB, BBB- S&P
A1, A2, A3, Baa1, Baa2, Baa3 Moody’s
A+, A, A-, BBB+, BBB, BBB- Fitch
Substandard grade BB+, BB, BB-, B/B+, CCC, R, SD & D S&P
Ba1, Ba2, Ba3, B1, B2, R, SD & D Moody’s
BB+, BB, BB-, B/B+, CCC, R, SD & D Fitch
Following is the credit rating scale applicable for foreign banks, and government securities (aligned with S&P ratings):
AAA - An obligor has extremely strong capacity to meet its financial commitments.
AA - An obligor has very strong capacity to meet its financial commitments. It differs from the highest-rated obligors at a minimal degree.
A - An obligor has strong capacity to meet its financial commitments but is somewhat more susceptible to the adverse effects of changes
in circumstances and economic conditions than obligors in higher-rated categories.
BBB and below:
BBB - An obligor has adequate capacity to meet its financial commitments. However, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitments.
BB - An obligor is less vulnerable in the near term than other lower-rated obligors. However, it faces major ongoing uncertainties and
exposure to adverse business, financial, or economic conditions which could lead to the obligor’s inadequate capacity to meet its financial
commitments.
B - An obligor is more vulnerable than the obligors rated ‘BB’, but the obligor currently has the capacity to meet its financial commitments.
Adverse business, financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its financial commitments.
CCC - An obligor is currently vulnerable and is dependent upon favorable business, financial, and economic conditions for the obligor to
meet its financial commitments.
CC - An obligor is currently vulnerable. The rating is used when a default has not yet occurred, but expects default to be a virtual certainty,
regardless of the anticipated time to default.
R - An obligor is under regulatory supervision owing to its financial condition. During the pendency of the regulatory supervision, the
regulators may have the power to favor one class of obligations over others or pay some obligations and not others.
SD and D - An obligor is in default on one or more of its financial obligations including rated and unrated financial obligations but excluding
hybrid instruments classified as regulatory capital or in non-payment according to terms.
The table below shows the credit quality of deposits and investments as of December 31, 2014 and 2013 (in millions), based on external
risk ratings (gross of allowance for credit losses).
Consolidated
2014
Substandard
High Grade Standard Grade Grade Total
Due from BSP P− P67,452 P− P67,452
Due from other banks 6,944 7,779 1,234 15,957
Interbank loans receivable − 224 − 224
Financial assets at FVPL 55 3,389 106 3,550
AFS financial assets 887 34,437 2,355 37,679
HTM financial assets − 12,109 − 12,109
P7,886 P125,390 P3,695 P136,971
Consolidated
2013
Substandard
Due from BSP P− P78,968 P− P78,968
Due from other banks 2,160 20,765 240 23,165
AFS financial assets 3,295 40,156 − 43,451
HTM financial assets − 12,151 − 12,151
P6,401 P155,622 P299 P162,322
Parent Company
2014
Substandard
Due from BSP P– P60,544 P– P60,544
Due from other banks 6,924 7,779 1,028 15,731
Interbank loans receivable – 224 – 224
AFS financial assets 885 33,212 2,353 36,450
HTM financial assets – 11,354 – 11,354
P7,864 P116,073 P3,487 P127,424
Parent Company
2013
Substandard
Due from BSP P– P75,678 P– P75,678
Due from other banks 2,109 20,573 31 22,713
AFS financial assets 3,295 39,170 – 42,465
HTM financial assets – 12,123 – 12,123
P6,350 P151,126 P90 P157,566
Due from other banks and government securities

The external risk rating of the Group’s depository accounts with counterparty banks, trading and investment securities, is grouped as
follows (aligned with the Philippine Ratings System):
Credit Quality Rating External Credit Risk Rating

High grade PRSAAA, PRSAa+, PRSAa, PRSAa-
Standard grade PRSA+, PRSA, PRSA-, PRSBaa+, PRSBaa, PRSBaa-
Substandard grade PRSBa+, PRSBa, PRSBa-, PRSB+, PRSB, PRSB-, PRSCaa+, PRSCaa,
PRSCaa-, PRSCa+, PRSCa, PRSCa-, PRSC+, PRSC, PRSC-
PRSAaa - The obligor’s capacity to meet its financial commitment on the obligation is extremely strong.
PRSAa - The obligor’s capacity to meet its financial commitment on the obligation is very strong.
PRSA - With favorable investment attributes and are considered as upper-medium grade obligations. Although obligations rated ‘PRSA’
are somewhat more susceptible to the adverse effects of changes in economic conditions, the obligor’s capacity to meet its financial
commitments on the obligation is still strong.
PRSBaa - An obligation rated ‘PRSBaa’ exhibits adequate protection parameters. However, adverse economic conditions and changing
circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation. PRSBaa-
rated issues may possess certain speculative characteristics.
PRSBa - An obligation rated ‘PRSBa’ is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoing
uncertainties relating to business, financial or economic conditions, which could lead to the obligor’s inadequate capacity to meet its
financial commitment on the obligation.
PRSB - An obligation rated ‘PRSB’ is more vulnerable to nonpayment than obligations rated ‘PRSBa’, but the obligor currently has the
capacity to meet its financial commitment on the obligation. Adverse economic conditions will likely impair the obligor’s capacity to meet
its financial commitment on the obligation. The issue is characterized by high credit risk.
PRSCaa - An obligation rated ‘PRSCaa’ is presently vulnerable to nonpayment and is dependent upon favorable business, financial and
economic conditions for the obligor to meet its financial commitments on the obligation. In the event of adverse economic conditions, the
obligor is not likely to have the capacity to meet its financial commitment on the obligation. The issue is considered to be of poor standing
and is subject to very high credit risk
PRSCa - An obligation rated “PRSCa” is presently highly vulnerable to nonpayment. Likely already in or very near default with some
prospect for partial recovery of principal or interest.
PRSC - An obligation is already in default with very little prospect for any recovery of principal or interest.
The table below shows the credit quality of deposits and investments, by class, as of December 31, 2014 and 2013 (in millions), based on
risk grades of a local rating agency (gross of allowance for credit losses).
Consolidated
2014
Substandard
Due from other banks P– P29 P– P29
Financial assets at FVPL 651 – – 651
AFS financial assets 557 1 – 558
Total P1,208 P30 P– P1,238
Consolidated
2013
Substandard
Due from other banks P134 P584 P– P718
Financial assets at FVPL 5,736 – – 5,736
AFS financial assets 545 – – 545
Total P6,415 P584 P– P6,999
Parent Company
2014
Substandard
Financial assets at FVPL P651 P– P– P651
Total P1,054 P– P– P1,054
Parent Company
2013
Substandard
Due from other banks P– P500 P– P500
Financial assets at FVPL 5,736 – – 5,736
Total P6,124 P500 P– P6,624
The table below shows the breakdown of unrated deposits and investments (gross of allowance for credit losses) as of December 31, 2014
and 2013 (in millions):

2014 2013 2014 2013
Due from other banks P1,567 P3 P106 P3
Financial assets at FVPL 4,240 98 4,240 98
AFS financial assets 279 393 229 350
Other assets* 4,916 3,367 2,720 3,099
Total P11,002 P3,861 P7,295 P3,550
* Other assets exclude net plan assets, creditable withholding taxes and miscellaneous nonfinancial assets (Note 14).
The table below shows the aging analysis of gross past due but not impaired loans and receivables that the Group and Parent Company held
as of December 31, 2014 and December 31, 2013 (in millions). Under PFRS 7, a financial asset is past due when a counterparty has failed
to make a payment when contractually due.
Consolidated
Less than More than
December 31, 2014 30 days 31 to 60 days 61 to 90 days 91 days Total
Corporate and commercial lending P227 P 96 P127 P399 P849
Consumer lending 420 83 37 1,230 1,770
Trade-related lending 7 − − 12 19
Others − − − 3 3
Total P654 P179 P164 P1,644 P2,641
Consolidated
Less than More than
Corporate and commercial lending P25 P25 P− P174 P224
Consumer lending 406 58 42 379 885
Others 1 − − 1 2
Total P448 P83 P42 P561 P1,134
Parent Company
Less than More than
Corporate and commercial lending P217 P91 P108 P266 P682
Consumer lending 397 56 20 799 1,272
Others − − − − −
Total P621 P147 P128 P1,077 P1,973
Parent Company
Less than More than
Corporate and commercial lending P25 P25 P− P67 P117
Consumer lending 406 57 42 379 884
Others 1 − − 1 2
Total P448 P82 P42 P454 P1,026
The following table presents the carrying amount of financial assets of the Group and Parent Company as of December 31, 2014 and 2013
that would have been considered past due or impaired if not renegotiated:

2014 2013 2014 2013
Loans and advances to customers:
Corporate and commercial lending P1,405,181,503 P690,027,946 P396,018,476 P668,959,232
Consumer lending 43,266,423 11,790,809 39,060,801 11,790,809
Total renegotiated financial assets P1,448,447,926 P701,818,755 P435,079,277 P680,750,041
Impairment assessment
The main considerations for the loan impairment assessment include whether any payment of principal or interest is overdue by more than
90 days, or there are known difficulties in the cash flows of counterparties, credit rating downgrades, or infringement of the original terms
of the contract. The Group addresses impairment assessment in two areas: individually assessed allowances and collectively assessed
allowances.
Individually assessed allowances

The Group determines the allowances appropriate for each individually significant loan or advance on an individual basis. Items considered
when determining allowance amounts include the sustainability of the counterparty’s business plan, its ability to improve performance
once a financial difficulty has arisen, projected receipts and the expected dividend payout should bankruptcy ensue, the availability of other
financial support and the realizable value of collateral, and the timing of the expected cash flows. The impairment losses are evaluated at
each reporting date, unless unforeseen circumstances require more careful attention.
Collectively assessed allowances

Allowances are assessed collectively for losses on loans and advances that are not individually significant (including residential mortgages
and unsecured consumer lending) and for individually significant loans and advances where there is no objective evidence of individual
impairment yet. Allowances are evaluated on each reporting date with each portfolio receiving a separate review.
The collective assessment takes account of impairment that is likely to be present in the portfolio even though there is no objective
evidence of the impairment yet per an individual assessment. Impairment losses are estimated by taking into consideration the following
information: historical losses on the portfolio, current economic conditions, the approximate delay between the time a loss is likely to have
been incurred and the time it will be identified as requiring an individually assessed impairment allowance, and expected receipts and
recoveries once impaired.
Management is responsible for deciding the length of this period which can extend for as long as one year. The impairment allowance is
then reviewed by credit management to ensure alignment with the Group’s overall policy.
Market Risk
Market risk is the risk of loss that may result from changes in the value of a financial product. The Parent Company’s market risk originates
from its holdings of domestic and foreign-denominated debt securities, foreign exchange instruments, equities, foreign exchange derivatives
and interest rate derivatives.
The RMG of the Parent Company is responsible for assisting the RMC with its responsibility for identifying, measuring, managing and
controlling market risk. Market risk management measures the Parent Company market risk exposures through the use of VaR. VaR is a
statistical measure that estimates the maximum potential loss from a portfolio over a holding period, within a given confidence level.
VaR assumptions
The Parent Company calculates the Bankwide VaR in certain trading activities. The Parent Company uses the Parametric Variance-
Covariance and Duration-Based approach to VaR for domestic- and foreign- denominated debt securities and Delta Approximation Historical
Simulation approach to VaR for foreign exchange instruments, equities, foreign exchange derivatives and interest rate derivatives, using a
99% confidence level and a 1-day holding period.
The use of a 99% confidence level means that, within a one day horizon, losses exceeding the VaR figure should occur, on average, not
more than once every hundred days. The validity of the VaR model is verified through back testing, which examines how frequently actual
and hypothetical daily losses exceeds daily VaR. The Parent Company measures and monitors the VaR and profit and loss on a daily basis.
Since VaR is an integral part of the Parent Company’s market risk management, VaR limits have been established for all trading positions
and exposures are reviewed daily against the limits by management. Further, stress testing is performed in monitoring extreme events.
Limitations of the VaR Methodology

The VaR models are designed to measure market risk in a normal market environment using equally weighted historical data. The use of
VaR has limitations because it is based on historical correlations and volatilities in market prices and assumes that future price movements
will follow the same distribution. Due to the fact that VaR relies heavily on historical data to provide information and may not clearly predict
the future changes and modifications of the risk factors, the probability of large market moves may be underestimated if changes in risk
factors fail to align with the assumptions. VaR may also be under- or over-estimated due to the assumptions placed on risk factors and
the relationship between such factors for specific instruments. Even though positions may change throughout the day, the VaR only
represents the risk of the portfolios at the close of each business day, and it does not account for any losses that may occur beyond the
99% confidence level.
In practice, the actual trading results will differ from the VaR calculation and, in particular, the calculation does not provide a meaningful
indication of profits and losses in stressed market conditions. To determine the reliability of the VaR models, actual outcomes are monitored
regularly to test the validity of the assumptions and the parameters used in the VaR calculation. Market risk positions are also subject to
regular stress tests to ensure that the Group would withstand an extreme market event.
A summary of the VaR position of the trading portfolio of the Parent Company is as follows:
Foreign
Interest Rate1 Exchange2 Equity Interest Rate3 Interest Rate4
(In Millions)
2014
31 December P41.98 P7.63 P43.20 P4.44 P3.10
Average daily 53.56 12.19 57.74 9.56 10.13
Highest 100.85 30.29 76.99 18.01 18.62
Lowest 28.33 1.52 40.34 2.84 3.10
2013
31 December P68.69 P13.70 P62.09 P15.90 P11.40
Average daily 80.03 14.82 105.59 12.36 6.60
Highest 132.29 37.37 131.56 39.21 14.54
Lowest 42.28 5.70 62.09 4.90 0.39
1 Interest rate VaR for debt securities (Interest rate VaR for foreign currency denominated debt securities are translated to PHP using prior month’s closing rate)
2 FX VaR is the bankwide foreign exchange risk
3 Interest rate VaR for FX swaps and FX forwards
4 Interest rate VaR for IRS
Interest Rate Risk

The Group’s interest rate risk originates from its holdings of interest rate sensitive assets and interest rate sensitive liabilities. The Parent
Company follows prudent policies in managing its exposures to interest rate fluctuations, and constantly monitors its assets and liabilities.
As of December 31, 2014 and 2013, 79.49% and 72.82% of the Group’s total loan portfolio, respectively, comprised of floating rate loans
which are repriced periodically by reference to the transfer pool rate which reflects the Group’s internal cost of funds. In keeping with
banking industry practice, the Group aims to achieve stability and lengthen the term structure of its deposit base, while providing adequate
liquidity to cover transactional banking requirements of customers.
Interest is paid on demand accounts, which constituted 26.08% and 22.26% of total deposits of the Parent Company as of December 31,
2014 and 2013, respectively.
Interest is paid on savings accounts and time deposits accounts, which constitute 25.45% and 48.47%, respectively, of total deposits of
the Parent Company as of December 31, 2014, and 20.27% and 57.47%, respectively, as of December 31, 2013.
Savings account interest rates are set by reference to prevailing market rates, while interest rates on time deposits and special savings
accounts are usually priced by reference to prevailing rates of short-term government bonds and other money market instruments, or, in the
case of foreign currency deposits, inter-bank deposit rates and other benchmark deposit rates in international money markets with similar
maturities.
The Group is likewise exposed to fair value interest rate risk due to its holdings of fixed rate government bonds as part of its AFS and FVPL
portfolios. Market values of these investments are sensitive to fluctuations in interest rates.
The following table provides for the average effective interest rates by period of repricing of the Group and of the Parent Company as of
December 31, 2014 and 2013:
Consolidated
2014 2013
Less than 3 months Greater Less than 3 3 months Greater
3 months to 1 year than 1 year months to 1 year than 1 year
Peso
Assets
Due from BSP 0.64% – – 0.75% – –
Due from banks 0.30% – – 0.28% – –
Investment securities* 2.75% 5.39% 5.28% 0.88% 4.70% 5.43%
Loans and receivables 4.93% 7.14% 8.61% 5.28% 7.04% 9.80%
(Forward)
Consolidated
2014 2013
Liabilities
Deposit liabilities 0.68% 1.72% 4.38% 1.18% 2.05% 6.12%
Bills payable 0.00% 6.20% 5.04% 3.76% 3.76% 4.15%
Subordinated debt 6.27% 6.27% – – – –
USD
Assets
Investment securities* 6.82% 0.00% 5.38% 2.77% – 4.78%
Liabilities
Deposit liabilities 1.27% 1.72% 0.00% 1.34% 1.70% –
Bills payable 0.94% 1.43% 1.73% 0.52% – 1.12%
* Consisting of financial assets at FVPL, AFS financial assets and HTM financial assets.
Parent Company
2014 2013
Peso
Assets
Due from BSP 0.61% – – 0.70% – –
Due from banks 0.22% – – 0.29% – –
Investment securities* 2.75% 5.48% 5.31% 0.88% 4.71% 5.47%
Liabilities
Deposit liabilities 0.66% 1.12% 4.20% 1.15% 1.96% 6.59%
Bills payable 0.00% 6.20% 5.04% 3.76% 3.76% 4.15%
USD
Assets
Investment securities* 6.82% 0.00% 5.38% 2.77% – 4.78%
Liabilities
Deposit liabilities 1.27% 1.73% 0.00% 1.34% 1.71% –
Bills payable 0.94% 1.43% 1.73% 0.52% – 1.12%
* Consisting of financial assets at FVPL, AFS financial assets and HTM financial assets.
The asset-liability gap analysis method is used by the Group to measure the sensitivity of its assets and liabilities to interest rate fluctuations.
This analysis measures the Group’s susceptibility to changes in interest rates. The repricing gap is calculated by first distributing the
assets and liabilities contained in the Group’s balance sheet into tenor buckets according to the time remaining to the next repricing date
(or the time remaining to maturity if there is no repricing), and then obtaining the difference between the total of the repricing (interest rate
sensitive) assets and the total of repricing (interest rate sensitive) liabilities.
A gap is considered negative when the amount of interest rate sensitive liabilities exceeds the amount of interest rate sensitive assets.
A gap is considered positive when the amount of interest rate sensitive assets exceeds the amount of interest rate sensitive liabilities.
Accordingly, during a period of rising interest rates, a bank with a positive gap would be in a position to invest in higher yielding assets earlier
than it would need to refinance its interest rate sensitive liabilities. During a period of falling interest rates, a bank with a positive gap would
tend to see its interest rate sensitive assets repricing earlier than its interest rate sensitive liabilities, restraining the growth of its net income
or resulting in a decline in net interest income.
The following table sets forth the repricing gap position of the Group and Parent Company as of December 31, 2014 and 2013 (in millions):
Consolidated
2014
Up to 3 >3 to 12 >12
Month Months Months Total
Financial Assets
Due from BSP P67,452 P– P– P67,452
Due from banks 17,553 – – 17,553
Investment securities 2,960 502 55,565 59,027
Loans and receivables 221,671 36,449 32,299 290,419
Total financial assets 309,636 36,951 87,864 434,451
(Forward)
Deposit liabilities 161,552 10,025 227,725 399,302
Bills payable 877 2,048 3,396 6,321
Subordinated debt 892 297 – 1,189
Total financial liabilities 163,321 12,370 231,121 406,812
Repricing gap P146,315 P24,581 (P143,257) P27,639
Consolidated
2013
Up to 3 >3 to 12 >12
Financial Assets
Due from banks 23,886 – – 23,886
Bills payable 4,028 1 4,270 8,299
Parent Company
2014
Up to 3 >3 to 12 >12
Financial Assets
Due from banks 15,837 – – 15,837
Bills payable 877 2,048 2,253 5,178
Parent Company
2013
Up to 3 >3 to 12 >12
Financial Assets
Due from banks 23,216 – – 23,216
(Forward)
Parent Company
2013
Up to 3 >3 to 12 >12
Deposit liabilities P179,377 P8,694 P151,761 P339,832
Bills payable 4,028 1 4,270 8,299
The Group also monitors its exposure to fluctuations in interest rates by using scenario analysis to estimate the impact of interest rate
movements on its interest income. This is done by modeling the impact to the Group’s interest income and interest expenses to parallel
changes in the interest rate curve in a given 12-month period.
The following table sets forth the estimated change in the Group’s and Parent Company’s annualized net interest income due to a parallel
change in the interest rate curve as of December 31, 2014 and 2013:
Consolidated
2014
Change in interest rates (in basis points)
100bp rise 50bp rise 50bp fall 100bp fall
Change in annualized net interest income P1,647,494,030 P823,747,015 (P823,747,015) (P1,647,494,030)
As a percentage of the Group’s net interest income
for the year ended December 31, 2014 11.69% 5.85% (5.85%) (11.69%)
Consolidated
2013
Change in annualized net interest income P998,533,038 P499,266,519 (P499,266,519) (P998,533,038)
As a percentage of the Group’s net interest income for
the year ended December 31, 2013 10.05% 5.02% (5.02%) (10.05%)
Parent Company
2014
Change in annualized net interest income P1,319,184,938 P659,592,469 (P659,592,469) (P1,319,184,938)
As a percentage of the Parent Company’s net interest
income for the year ended December 31, 2014 11.39% 5.69% (5.69%) (11.39%)
Parent Company
2013
Change in annualized net interest income P993,241,986 P496,620,993 (P496,620,993) (P993,241,986)
As a percentage of the Parent Company’s net interest
income for the year ended December 31, 2013 10.50% 5.25% (5.25%) (10.50%)
The following table sets forth the estimated change in the Group’s and Parent Company’s income before tax and equity due to a reasonably
possible change in the market prices of quoted bonds classified under financial assets at FVPL and AFS financial assets, brought about by
movement in the interest rate curve as of December 31, 2014 and 2013:
Consolidated
2014
Change in income before tax (P50,050,734) (P20,141,935) P20,306,342 P51,078,353
Change in equity (670,424,296) (270,077,356) 272,656,008 686,542,015
Consolidated
2013
Change in equity (862,447,259) (347,649,561) 351,263,124 885,033,833
Parent Company
2014
Change in equity (650,480,668) (262,054,549) 264,572,028 666,216,031
Parent Company
2013
Change in equity (848,828,466) (342,166,905) 345,733,011 871,118,409
Foreign Currency Risk

The Group’s foreign exchange risk originates from its holdings of foreign currency-denominated assets (foreign exchange assets) and
foreign currency-denominated liabilities (foreign exchange liabilities).
Foreign exchange liabilities generally consist of foreign currency-denominated deposits in the Group’s FCDU account made in the Philippines
or generated from remittances to the Philippines by persons overseas who retain for their own benefit or for the benefit of a third party,
foreign currency deposit accounts with the Group.
Foreign currency liabilities are generally used to fund the Group’s foreign exchange assets which generally consist of foreign currency-
denominated loans and investments in the FCDU. Banks are required by the BSP to match the foreign currency-denominated assets with
liabilities held in the FCDU that are denominated in the same foreign currency. In addition, the BSP requires a 30.00% liquidity reserve on
all foreign currency-denominated liabilities held in the FCDU.
The Group’s policy is to maintain foreign currency exposure within existing regulations, and within acceptable risk limits. The Group
believes in ensuring its foreign currency is at all times within limits prescribed for financial institutions who are engaged in the same types
of businesses in which the Group and its subsidiaries are engaged.
The table below summarizes the Group’s and Parent Company’s exposure to foreign exchange risk. Included in the table are the Group’s
and Parent Company’s assets and liabilities at carrying amounts (stated in US Dollars), categorized by currency (in thousands):
Consolidated
2014 2013
Other Other
USD Currencies Total PHP USD Currencies Total PHP
Assets
Cash and other cash items $11,362 $2,973 $14,335 P641,021 $9,674 $2,978 $12,652 P561,692
Due from other banks 328,267 23,670 351,937 15,738,635 482,367 17,507 499,874 22,191,914
Financial assets at FVPL 14,994 1,354 16,348 731,071 50,347 1,422 51,769 2,298,297
AFS financial assets 316,732 1,277 318,009 14,221,324 352,368 1,497 353,865 15,676,194
HTM financial assets 265,450 3,187 268,637 12,013,432 269,465 3,597 273,062 12,122,589
Loans and receivables 904,055 730 904,785 40,461,999 917,188 4,271 921,459 40,908,151
Accrued interest receivable 15,447 286 15,733 703,616 17,852 322 18,174 806,848
Other assets 54,187 11 54,198 2,452,322 233 2 235 10,436
1,910,494 33,488 1,943,982 86,963,420 2,099,494 31,596 2,131,090 94,576,121
Liabilities
Deposit liabilities 1,614,063 18,601 1,632,664 73,012,742 1,586,248 12,133 1,598,381 70,960,118
Bills payables 115,506 − 115,506 5,165,440 186,293 − 186,293 8,270,476
expenses 2,756 11 2,767 123,776 17,852 9 17,861 112,118
Other liabilities 61,571 743 62,314 2,786,707 233 2,142 2,375 1,105,154
1,793,896 19,355 1,813,251 81,088,665 1,790,626 14,284 1,804,910 80,447,866
Currency spot 6,000 – 6,000 268,045 16,876 (1,376) 15,500 688,258
Currency forwards (132,295) (2,000) (134,295) (6,192,153) (337,720) – (337,720) (15,338,006)
Net Exposure ($9,697) $12,133 $2,436 (P49,353) ($11,976) $15,936 $3,960 (P521,493)
Parent Company
2014 2013
Other Other
USD Currencies Total PHP USD Currencies Total PHP
Assets
Cash and other cash items $10,692 $2,973 $13,665 P611,049 $9,631 $2,978 $12,609 P559,788
Due from other banks 310,161 23,670 333,831 14,928,926 477,207 17,507 494,714 21,962,833
Financial assets at FVPL 11,991 1,354 13,345 596,784 50,347 1,422 51,769 2,298,297
AFS financial assets 309,739 1,277 311,016 13,908,615 344,757 1,497 346,254 15,338,314
HTM financial assets 250,699 3,187 253,886 11,353,788 269,465 3,597 273,062 12,122,589
Loans and receivables 888,738 730 889,468 39,777,016 917,188 4,271 921,459 40,908,151
Accrued interest receivable 14,963 286 15,249 681,963 17,651 322 17,973 797,932
Other assets 54,122 11 54,133 2,449,398 233 2 235 10,436
1,851,105 33,488 1,884,593 84,307,539 2,086,479 31,596 2,118,075 93,998,340
Liabilities
Deposit liabilities 1,564,418 18,601 1,583,019 70,792,606 1,575,121 12,133 1,587,254 70,466,129
Bills payables 115,506 − 115,506 5,165,440 186,293 − 186,293 8,270,476
expenses 2,698 11 2,709 121,169 2,498 9 2,507 111,301
Other liabilities 58,786 743 59,529 2,662,132 22,757 2,142 24,899 1,105,113
1,741,408 19,355 1,760,763 78,741,347 1,786,669 14,284 1,800,953 79,953,019
Currency spot 6,000 – 6,000 268,045 16,876 (1,376) 15,500 688,258
Currency forwards (132,295) (2,000) (134,295) (6,192,153) (337,720) – (337,720) (15,338,006)
Net Exposure ($16,598) $12,133 ($4,465) (P357,916) ($21,034) $15,936 ($5,098) (P604,427)
The following table sets forth, for the period indicated, the impact of the range of reasonably possible changes in the US$ exchange rate
and other currencies per Philippine peso on the pre-tax income and equity (in millions).
Consolidated
Change in
Foreign Sensitivity of Sensitivity of
Exchange Rate Pretax Income Equity
2014
USD 2% P13 P296
Other 1% 1 1
USD (2%) (13) (296)
Other (1%) (1) (1)
2013
USD 2% P49 P361
Other 1% 1 1
USD (2%) (49) (361)
Other (1%) (1) (1)
Parent Company
Change in
Foreign Sensitivity of Sensitivity of
Exchange Rate Pretax Income Equity
2014
USD 2% P11 P287
Other 1% 1 1
USD (2%) (11) (287)
Other (1%) (1) (1)
2013
USD 2% P49 P354
Other 1% 1 1
USD (2%) (49) (354)
Other (1%) (1) (1)
The impact in pre-tax income and equity is due to the effect of foreign currency behaviour to Philippine peso.
Equity Price Risk

Equity price risk is the risk that the fair values of equities change as a result of movements in both the level of equity indices and the value
of individual stocks. The non-trading equity price risk exposure arises from the Group’s investment portfolio.
The effect on the Group and Parent Company’s equity as a result of a change in the fair value of equity instruments held as AFS due to a
reasonably possible change in equity indices, with all other variables held constant, is as follows (in millions):
Consolidated
Change in Effect on
equity index Equity
2014 +10% P23.6
-10% 0.4
2013 +10% P11.1
-10% (6.9)
Parent Company
Change in Effect on
equity index Equity
2014 +10% P23.6
-10% 0.4
2013 +10% P11.1
-10% (6.9)
Liquidity Risk and Funding Management

Liquidity risk is generally defined as the current and prospective risk to earnings or capital arising from the Parent Company’s inability to
meet its obligations when they become due without incurring unacceptable losses or costs.
The Parent Company’s liquidity management involves maintaining funding capacity to accommodate fluctuations in asset and liability
levels due to changes in the Parent Company’s business operations or unanticipated events created by customer behavior or capital
market conditions. The Parent Company seeks to ensure liquidity through a combination of active management of liabilities, a liquid asset
portfolio composed substantially of deposits in primary and secondary reserves, the securing of money market lines, and the maintenance
of repurchase facilities to address any unexpected liquidity situations.
The table below shows the maturity profile of the Parent Company’s assets and liabilities, based on contractual undiscounted cash flows:
December 31, 2014

Less than
On demand 1 year 1 to 2 years 2 to 3 years 3 to 5 years Total
(In Millions)
Financial Assets
Cash and other cash items P9,295 P– P– P– P– P9,295
Due from BSP 60,544 – – – – 60,544
Due from other banks 15,837 – – – – 15,837
Financial assets at FVPL – 342 1,797 5,154 3,634 10,927
AFS financial assets – 2,444 3,922 2,462 50,165 58,993
Loans and receivables – 130,977 20,509 15,847 124,264 291,597
85,676 133,763 26,228 23,463 178,063 447,193
Deposit liabilities
Demand 88,943 – – – – 88,943
Savings – 86,960 – – – 86,960
Time – 158,414 3,097 1,193 3,917 166,621
Bills payable – 2,993 2,345 – 9 5,347
Manager’s checks – 822 – – – 822
Accrued interest and other expenses – 1,276 – – – 1,276
Derivative liabilities – 102 – – – 102
Other liabilities:
Accounts payable – 976 – – – 976
Acceptances payable – 334 – – – 334
Due to PDIC – 334 – – – 334
Margin deposits – 3 – – – 3
Miscellaneous – 641 – – – 641
Total liabilities 88,943 252,855 5,442 1,193 3,926 352,359
Net Position (P3,267) (P119,092) P20,786 P22,270 P174,137 P94,834
December 31, 2013

Less than
On demand 1 year 1 to 2 years 2 to 3 years 3 to 5 years Total
(In Millions)
Financial Assets
Cash and other cash items P7,035 P– P– P– P– P7,035
Due from BSP 75,678 – – – – 75,678
Due from other banks 23,216 – – – – 23,216
Financial assets at FVPL – 369 282 546 10,516 11,713
AFS financial assets – 2,623 2,598 3,728 50,387 59,336
Loans and receivables – 107,116 18,441 13,947 90,351 229,855
105,929 110,108 21,321 18,221 151,254 406,833
Deposit liabilities
Demand 75,633 – – – – 75,633
Savings – 68,897 − − − 68,897
Time – 188,947 303 3,129 4,591 196,970
Bills payable – 4,019 2,108 2,337 12 8,476
Manager’s checks – 704 – – – 704
Accrued interest and other expenses – 1,446 – – – 1,446
Derivative liabilities – 155 – – – 155
Other liabilities:
Accounts payable – 618 – – – 618
Acceptances payable – 955 – – – 955
Due to PDIC – 317 – – – 317
Margin deposits – 1 – – – 1
Miscellaneous – 979 – – – 979
Total liabilities 75,633 267,038 2,411 5,466 4,603 355,151
Net Position P30,296 (P156,930) P18,910 P12,755 P146,651 P51,682
Liquidity risk is monitored and controlled primarily by a gap analysis of maturities of relevant assets and liabilities reflected in the MCO
report, as well as an analysis of available liquid assets. Instead of relying solely on contractual maturities profile, the Parent Company uses
Behavioral MCO to capture a going concern view. Furthermore, internal liquidity ratios and monitoring of large funds providers have been
set to determine sufficiency of liquid assets over deposit liabilities. Liquidity is managed by the Parent and subsidiaries on a daily basis,
while scenario stress tests are conducted periodically.
7. DUE FROM BSP AND OTHER BANKS
Due from BSP

This account consists of:

2014 2013 2014 2013
Demand deposit account P57,088,508,431 P49,018,604,183 P52,514,038,321 P48,179,783,709
Special deposit account 10,315,000,000 29,851,000,000 7,990,000,000 27,400,000,000
Others 48,139,452 98,528,339 39,828,361 98,528,339
P67,451,647,883 P78,968,132,522 P60,543,866,682 P75,678,312,048
Due from Other Banks


2014 2013 2014 2013
Foreign banks P14,716,454,106 P15,159,212,398 P14,697,130,578 P14,718,331,172
Local banks 2,836,369,116 8,726,325,730 1,139,570,475 8,497,244,185
P17,552,823,222 P23,885,538,128 P15,836,701,053 P23,215,575,357
Interest Income on Due from BSP and Other Banks


2014 2013 2012 2014 2013 2012
Due from BSP P554,801,647 P450,734,237 P221,122,736 P432,702,705 P396,819,129 P173,411,222
Due from other banks 146,340,197 31,002,663 33,888,463 32,386,669 11,330,829 15,141,468
P701,141,844 P481,736,900 P255,011,199 P465,089,374 P408,149,958 P188,552,690
8. TRADING AND INVESTMENT SECURITIES
Financial assets at FVPL


2014 2013 2014 2013
Held for trading:
Treasury notes P2,310,085,369 P1,885,968,182 P1,992,773,785 P1,885,968,182
Government bonds 924,848,187 2,289,626,987 813,896,371 2,289,626,987
Private bonds and commercial papers 997,631,752 893,905,336 997,631,752 893,905,336
Treasury bills 71,826 – 71,826 –
4,232,637,134 5,069,500,505 3,804,373,734 5,069,500,505
Financial asset designated at FVPL 3,918,504,492 4,856,408,376 3,918,504,492 4,856,408,376
Derivative assets (Note 24) 289,557,062 495,514,172 289,557,062 495,514,172
Total P8,440,698,688 P10,421,423,053 P8,012,435,288 P10,421,423,053
Financial assets designated at FVPL pertain to the Parent Company’s investments in preferred shares. The preferred shares are redeemable
at the option of the issuer, at a price equivalent to the issue price of P75.00 per share plus cumulative and unpaid dividend, starting on the
third anniversary from the listing date (September 28, 2012) or any dividend payment date thereafter.
The preferred shares also contain dividend rate step-up which is the higher of the dividend rate of 7.50% or the 10-year PDST-F plus
300 bps. The dividend rate step-up will apply if the issuer does not redeem the preferred shares on the fifth year of issuance.
The preferred shares have an embedded derivative in the form of an optional redemption feature, which is deemed not clearly and
closely related to its equity host. In this regard, PAS 39 provides that if a contract contains one or more embedded derivatives, an entity
may designate the entire hybrid contract at FVPL unless the embedded derivative does not significantly modify the cash flows that
otherwise would be required by the contract, or it is clear with little or no analysis when a similar hybrid instrument is first considered
that separation of the embedded derivative is prohibited. On this basis, management has determined that the preferred shares shall be
designated as at FVPL.
As of December 31, 2014 and 2013, HFT securities include fair value loss of P17.62 million and P39.92 million, respectively, for the Group,
and fair value loss of P17.64 million and P39.92 million, respectively, for the Parent Company. Both realized and unrealized gains and losses
on HFT and financial assets designated at FVPL are included under ‘Trading and securities gain - net’ (Note 20).
Effective interest rates for peso-denominated financial assets at FVPL range from 1.63% to 13.75% in 2014 and 2013, and from 4.63% to
13.75% in 2012. Effective interest rates for foreign currency-denominated financial assets at FVPL range from 2.75% to 10.63% in 2014,
from 1.25% to 10.63% in 2013, and from 2.75% to 10.63% in 2012.
AFS financial assets


2014 2013 2014 2013
Quoted:
Government bonds (Notes 17 and 27) P35,484,049,272 P39,635,113,012 P34,253,419,890 P38,658,871,304
Private bonds 2,277,687,388 3,555,275,367 2,123,877,887 3,394,861,168
Equities 150,123,537 150,459,385 149,358,344 143,418,541
37,911,860,197 43,340,847,764 36,526,656,121 42,197,151,013
Unquoted:
Private bonds and commercial
papers - net 529,169,134 979,626,875 529,169,134 979,626,875
Equities - net * 35,822,981 28,782,136 19,412,705 19,412,705
564,992,115 1,008,409,011 548,581,839 999,039,580
Total P38,476,852,312 P44,349,256,775 P37,075,237,960 P43,196,190,593
* Includes fully impaired equity investments with acquisition cost of P38.74 million for the Group and P6.32 million for the Parent Company as of
December 31, 2014 and P38.74 million for the Group and P6.32 million for the Parent Company as of December 31, 2013.
Unquoted equity securities

This account comprises of shares of stocks of private corporations that are carried at cost since fair value cannot be reliably estimated due
to lack of reliable estimates of future cash flows and discount rates necessary to calculate the fair value. There is currently no market for
these investments and the Group intends to hold them for the long term.
Net unrealized gains (losses)

AFS financial assets include fair value gains of P122.92 million and P114.50 million for the Group and Parent Company, respectively, as
of December 31, 2014, and fair value losses of P79.26 million and P73.86 million for the Group and Parent Company, respectively, as of
December 31, 2013. The fair value gains or losses are recognized under OCI. The deferred tax liabilities recognized on net unrealized gains
amounted to 1.17 million as of December 31, 2014 and 2013 for both the Group and Parent Company. Impairment loss on AFS financial
assets which was charged to operations amounted to P5.13 million in 2012. No impairment loss was recognized in 2014 and 2013.
Effective interest rates for peso-denominated AFS financial assets range from 1.63% to 8.92% in 2014 and 2013, and from 1.75% to 8.92%
in 2012. Effective interest rates for foreign currency-denominated AFS financial assets range from 1.50% to 5.71% in 2014, from 1.30% to
7.79% in 2013, and from 1.23% to 7.79% in 2012.


2014 2013 2014 2013
Government bonds (Note 17) P11,662,921,811 P11,713,844,329 P10,940,806,811 P11,685,809,329
Private bonds 361,561,200 358,933,575 361,561,200 358,933,575
12,024,483,011 12,072,777,904 11,302,368,011 12,044,742,904
Unamortized premium – net 84,860,593 77,768,925 51,419,816 77,846,309
P12,109,343,604 P12,150,546,829 P11,353,787,827 P12,122,589,213
Effective interest rates for peso-denominated HTM financial assets range from 4.13% to 9.13% in 2014, and from 6.00% to 7.50% in 2013
and 2012.
Effective interest rates for foreign currency-denominated HTM financial assets range from 4.61% to 11.55% in 2014, from 2.36% to 11.55%
in 2013, and from 0.96% to 11.55% in 2012.
Reclassification of Financial Assets

In 2008, as approved by its BOD, the Parent Company identified assets for which it had a clear change of intent to hold the investments
to maturity rather than to exit or trade these investments in the foreseeable future and reclassified those investments from AFS financial
assets to HTM financial assets effective October 2, 2008.
As of October 2, 2008, the total carrying value of AFS financial assets reclassified to HTM financial assets amounted to P9.04 billion, with
unrealized losses of 47.44 million deferred under ‘Net unrealized gains (losses) on AFS financial assets’.
HTM financial assets reclassified from AFS financial assets with total face amount of P56.35 million and P30.41 million matured in 2014
and 2013, respectively.
As of December 31, 2014 and 2013, HTM financial assets reclassified from AFS financial assets have the following balances:
Unamortized
Net Unrealized
Gain (Loss)
Original Carrying Fair Deferred
Face Value Cost Value Value in Equity Amortization
(In Thousands)
2014
Government bonds* P2,454,372 P2,780,337 P2,555,197 P2,842,462 P4,952 (P27,413)
Private bonds** 359,549 359,531 353,408 392,555 (6,136) 15,420
P2,813,921 P3,139,868 P2,908,605 P3,235,017 (P1,184) (P11,993)
2013
Government bonds* P2,513,659 P2,826,638 P2,652,572 P3,020,586 P6,800 (P22,886)
Private bonds** 356,936 356,918 347,865 401,253 (9,064) 12,335
P2,870,595 P3,183,556 P3,000,437 P3,421,839 (P2,264) (P10,551)
* Consist of US dollar-denominated bonds with face value of $51.63 million and $52.89 million as of December 31, 2014 and 2013,
respectively, and euro-denominated bonds with face value of €2.71 million as of December 31, 2014 and 2013
** Consist of US dollar-denominated bonds with face value of $8.04 million
Had these securities not been reclassified to HTM financial assets, additional mark-to-market gain that would have been credited to the
statement of comprehensive income amounted to P324.67 million, P421.40 million and P581.14 million in 2014, 2013 and 2012, respectively.
Effective interest rates on the reclassified securities range from 5.51% to 8.99%. The Parent Company expects to recover 100.00% of
the principal and interest due on the reclassified investments totaling P3.15 billion and P3.72 billion, as of December 31, 2014 and 2013,
respectively. No impairment loss was recognized on these securities in 2014, 2013 and 2012.
Interest Income on Trading and Investment Securities


2014 2013 2012 2014 2013 2012
Financial assets at FVPL P277,144,235 P352,133,595 P298,948,370 P239,536,739 P352,133,595 P298,948,370
AFS financial assets 1,776,157,142 1,811,974,578 2,078,764,841 1,683,204,791 1,744,705,222 1,818,703,205
HTM financial assets 968,484,791 1,063,232,965 996,120,825 949,382,362 1,061,457,141 1,179,913,311
P3,021,786,168 P3,227,341,138 P3,373,834,036 P2,872,123,892 P3,158,295,958 P3,297,564,886
9. LOANS AND RECEIVABLES

2014 2013 2014 2013
Loans and discounts
Corporate and commercial lending P239,200,179,292 P185,896,772,212 P210,939,349,995 P181,966,719,789
Consumer lending 43,497,555,315 29,882,950,411 27,680,871,403 23,622,741,057
Trade-related lending 14,669,504,068 11,778,365,236 13,024,243,593 11,778,365,236
Others 283,458,964 100,295,865 80,807,228 90,104,852
297,650,697,639 227,658,383,724 251,725,272,219 217,457,930,934
Unearned discounts (497,418,129) (484,400,529) (242,962,903) (378,681,663)
297,153,279,510 227,173,983,195 251,482,309,316 217,079,249,271
Allowance for impairment and credit losses
(Note 15) (6,734,549,993) (6,633,080,280) (6,225,088,446) (6,316,979,860)
P290,418,729,517 P220,540,902,915 P245,257,220,870 P210,762,269,411
The Group’s and Parent Company’s loans and discounts under corporate lending include unquoted debt securities with carrying amount
of P1.72 billion and P1.00 billion as of December 31, 2014, respectively, and P2.38 billion and P2.04 billion as of December 31, 2013,
respectively.
Outstanding loans of the Group and the Parent Company amounting to P1.30 billion and P14.45 million, respectively in 2014 and
P54.44 million in 2013, are funded by relending facilities with local government agencies (Note 17).
The separate valuation allowance of acquired loans and receivables from Unity Bank and PDB were not recognized by the Group on the
effectivity date of acquisition as these receivables were measured at fair value on acquisition date. Any uncertainties about future cash
flows of these receivables were included in their fair value measurement (Note 10).
BSP Reporting
Information on the amounts of secured and unsecured loans and receivables (gross of unearned discounts and allowance for impairment
and credit losses) of the Group and Parent Company are as follows:

2014 2013 2014 2013
Amounts % Amounts % Amounts % Amounts %
Loans secured by:
Real estate P55,764,189,196 18.74 P34,238,716,703 15.04 P32,491,766,254 12.91 P31,636,943,961 14.55
Chattel mortgage 22,998,122,334 7.73 20,072,559,602 8.82 17,024,832,889 6.76 17,924,950,148 8.24
Deposit hold out 5,948,019,845 2.00 3,173,880,795 1.39 3,537,857,796 1.41 3,137,272,126 1.44
Shares of stock of
other banks (Note 28) 3,492,000,000 1.17 2,942,000,000 1.29 3,492,000,000 1.39 2,942,000,000 1.35
Others 53,382,116,639 17.93 46,891,567,995 20.60 52,426,565,415 20.82 46,891,567,995 21.57
141,584,448,014 47.57 107,318,725,095 47.14 108,973,022,354 43.29 102,532,734,230 47.15
Unsecured loans 156,066,249,625 52.43 120,339,658,629 52.86 142,752,249,865 56.71 114,925,196,704 52.85
P297,650,697,639 100.00 P227,658,383,724 100.00 P251,725,272,219 100.00 P217,457,930,934 100.00
Information on the concentration of credit as to industry of the Group and Parent Company follows:
Consolidated
2014 2013
Amounts % Amounts %
Real estate, renting and business services P69,241,216,408 23.26 P60,230,149,588 26.46
Wholesale and retail trade 36,917,309,884 12.40 34,434,621,617 15.13
Manufacturing 38,152,285,844 12.82 32,723,302,187 14.37
Financial intermediaries 21,817,761,342 7.33 19,509,696,732 8.57
Transportation, storage and communication 21,267,210,137 7.14 18,728,510,372 8.23
Electricity, gas and water 20,036,403,765 6.73 13,361,046,785 5.87
Construction 6,813,144,801 2.29 6,074,279,567 2.67
Agriculture 10,297,106,981 3.46 4,174,326,839 1.83
Mining and quarrying 1,504,773,694 0.51 803,749,446 0.35
Others 71,603,484,783 24.06 37,618,700,591 16.52
P297,650,697,639 100.00 P227,658,383,724 100.00
Parent Company
2014 2013
Amounts % Amounts %
Real estate, renting and business services P57,121,203,839 22.69 P56,569,557,306 26.01
Wholesale and retail trade 35,066,880,762 13.93 33,660,321,224 15.48
Manufacturing 35,051,788,183 13.92 32,678,273,990 15.03
Financial intermediaries 21,461,779,862 8.53 18,716,522,416 8.61
Transportation, storage and communication 17,599,794,434 6.99 18,424,306,894 8.47
Electricity, gas and water 18,897,358,558 7.51 13,360,581,687 6.14
Construction 4,912,030,663 1.95 5,962,632,897 2.74
Agriculture 3,997,277,688 1.59 4,163,167,175 1.92
Mining and quarrying 1,504,081,969 0.60 802,688,379 0.37
Others 56,113,076,261 22.29 33,119,878,966 15.23
P251,725,272,219 100.00 P217,457,930,934 100.00
The BSP considers that loan concentration exists when the total loan exposure to a particular industry or economic sector exceeds 30.00%
of total loan portfolio. As of December 31, 2014 and 2013, the Group does not have credit concentration in any particular industry.
As of December 31, 2014 and 2013, secured and unsecured non-performing loans (NPLs) of the Group and the Parent Company follow:

2014 2013 2014 2013
Secured P3,523,173,098 P2,370,944,220 P1,925,863,888 P2,055,920,376
Unsecured 3,128,196,391 2,152,985,178 2,030,453,804 2,062,015,314
P6,651,369,489 P4,523,929,398 P3,956,317,692 P4,117,935,690
Generally, NPLs refer to loans whose principal and/or interest is unpaid for thirty (30) days or more after due date or after they have become
past due in accordance with existing BSP rules and regulations. This shall apply to loans payable in lump sum and loans payable in quarterly,
semi-annual, or annual installments, in which case, the total outstanding balance thereof shall be considered nonperforming.
In the case of loans that are payable in monthly installments, the total outstanding balance thereof shall be considered nonperforming when
three (3) or more installments are in arrears.
In the case of loans that are payable in daily, weekly, or semi-monthly installments, the total outstanding balance thereof shall be considered
nonperforming at the same time that they become past due in accordance with existing BSP regulations, i.e., the entire outstanding balance
of the receivable shall be considered as past due when the total amount of arrearages reaches ten percent (10.00%) of the total loan balance.
Loans are classified as nonperforming in accordance with BSP regulations, or when, in the opinion of management, collection of interest
or principal is doubtful. Loans are not reclassified as performing until interest and principal payments are brought current or the loans are
restructured in accordance with existing BSP regulations, and future payments appear assured.
Loans which do not meet the requirements to be treated as performing loans shall also be considered as NPLs. Effective January 1, 2013,
the exclusion of NPLs classified as loss but are fully covered by allowance was removed by the BSP through Circular No. 772. Previous
banking regulations allow banks that have no unbooked valuation reserves and capital adjustments to exclude from nonperforming
classification those loans classified as Loss in the latest examination of the BSP which are fully covered by allowance for credit losses,
provided that interest on said receivables shall not be accrued.
Based on the revised definition of NPL under Circular No. 772, gross and net NPLs of the Parent Company as reported to BSP amounted
to P3.96 billion andP 0.46 billion, respectively, in 2014 and P4.12 billion and P0.25 billion, respectively, in 2013. Gross and net NPL ratios of
the Parent Company are 1.58% and 0.18%, respectively, in 2014 and 1.92% and 0.12%, respectively, in 2013.
Interest Income on Loans and Receivables


2014 2013 2012 2014 2013 2012
Receivables from
customers P14,515,093,271 P10,190,948,886 P9,282,451,833 P11,158,515,210 P9,570,641,726 P9,027,939,294
Unquoted debt
securities 159,117,858 181,126,556 239,572,613 136,900,797 158,864,665 217,356,122
P14,674,211,129 P10,372,075,442 P9,522,024,446 P11,295,416,007 P9,729,506,391 P9,245,295,416
As of December 31, 2014 and 2013, 67.75% and 72.82%, respectively, of the total receivable from customers of the Group were subject
to interest repricing. As of December 31, 2014 and 2013, 79.01% and 77.21%, respectively, of the total receivable from customers of the
Parent Company were subject to interest repricing. Remaining receivables carry annual fixed interest rates ranging from 0.98% to 10.50%
in 2014, from 1.95% to 10.65% in 2013, and from 1.25% to 29.00% in 2012 for foreign currency-denominated receivables and from 1.25%
to 29.00% in 2014, from 1.00% to 23.38% in 2013, and from 4.25% to 30.00% in 2012 for peso-denominated receivables.
10. EQUITY INVESTMENTS
The Parent Company’s investments consist of:
2014 2013
Subsidiaries:
CBSI (Note 13) P2,986,310,787 P1,473,810,787
PDB (Note 13) 2,976,700,038 –
CBC Forex Corporation 50,000,000 50,000,000
CBC-PCCI 2,439,000 2,439,000
CIBI 1,500,000 1,500,000
Unity Bank – 400,000,000
6,016,949,825 1,927,749,787
Associate:
Manulife China Bank Life Assurance Corporation (MCB Life) 166,273,454 21,245,838
P6,183,223,279 P1,948,995,625
The foregoing balances represent the acquisition cost of the Parent Company’s subsidiaries and associate.
CBSI
Cost of investment includes the original amount incurred by the Parent Company from its acquisition of CBSI in 2007 amounting to
P1.07 billion (net of goodwill and branch licenses transferred to the Parent Company amounting to P0.66 million) and additional acquisition
of non-controlling interest in 2013 of P0.20 million. The additional acquisition brought up the Parent Company’s interest in CBSI to
95.25% as of December 31, 2013.
On March 5, 2014, the BOD of the Parent Company approved the capital infusion to CBSI of up to P800.00 million in tranches as may
be considered necessary to support CBSI’s planned business growth and expansion and to enable CBSI to meet the minimum capital
requirement under Basel III.
On September 3, 2014, the BOD of the Parent Company approved the capital infusion to CBSI amounting to P312.50 million in line with
subsidiary’s application for a P5.00 billion increase in authorized capital stock. The amount infused represents the required payment, which
is 25.00% of the 25.00% minimum capital which the Parent Company shall subscribe.
The aggregate capital infusion amounting to P1.11 billion brought up the Parent Company’s interest in CBSI to 98.00% as of
December 31, 2014.
Merger of CBSI with Unity Bank

The BOD of CBSI, in its meeting held last June 6, 2013, approved the proposed merger with Unity Bank. The terms of the Plan of Merger
of CBSI with Unity Bank were approved by CBSI’s stockholders in their meeting held on July 18, 2013.
On November 22, 2013, the Monetary Board (MB), in its Resolution No. 1949, approved the Plan of Merger and Articles of Merger of CBSI
and Unity Bank subject to certain conditions.
On January 20, 2014, CBSI obtained SEC’s approval of its merger with Unity Bank. The merger was effected via a share-for-share exchange,
with CBSI as the surviving entity.
In 2012, the acquisition of Unity Bank resulted in recognition of gain on bargain purchase amounting to 165.89 million, included under
‘Miscellaneous income’ in the statements of income.
Acquisition of PDB
On September 18, 2013, the BOD of the Parent Company approved the Parent Company’s acquisition of at least 66.67% of the outstanding
subscribed capital stock of PDB. On the same date, the Parent Company, the PDB Shareholders, and PDB entered into a memorandum of
agreement (MOA) wherein the PDB Shareholders agreed to sell their shares in PDB representing at least 66.67% of the total outstanding
capital stock of PDB to the Parent Company.
On December 18, 2013, the Parent Company and the selling PDB Shareholders executed the Share Purchase Agreement (SPA) for the
acquisition of the latter’s 84.77% equity interest in PDB in exchange for cash consideration. The SPA includes closing conditions and
activities to be fulfilled by both the Parent Company and the selling PDB Shareholders on or before the Closing Date defined under the SPA.
Also on December 18, 2013, the Parent Company obtained from the MB of the BSP the approval-in-principle of the merger between PDB
with either the Parent Company or CBSI within three years from the date of MB approval (December 13, 2013), the first stage of which is
the acquisition by the Parent Company of 84.77% of the outstanding subscribed capital stock of PDB. The Parent Company obtained the
final approval of the acquisition from the MB on May 23, 2014.
On January 15, 2014, the Closing Date, the Parent Company acquired majority of PDB’s outstanding subscribed capital stock in exchange
for a cash consideration. The following significant closing conditions of the SPA were also carried out:
a) Execution of the deeds of absolute sale of shares in favor of the Parent Company, evidencing the sale, assignment, transfer, and
conveyance by majority of the selling PDB shareholders of the relevant sale shares;
b) Resignation of each of the original members of the BOD of PDB; and
c) Election/re-election of the new members of the BOD of PDB, majority of which are members of the BOD of the Group.
Accordingly, on January 15, 2014, the Parent Company obtained control over PDB.
On January 17, 2014, the Parent Company remitted cash amounting to P1.30 billion to PDB which was converted to PDB common shares
as an additional capital infusion.
On various dates in 2014, the Parent Company made tender offers to non-controlling stockholders of PDB. As of December 31, 2014, the
Parent Company owns 99.85% and 100.00% of PDB’s outstanding common and preferred stocks, respectively.
The Parent Company’s cost of investment in PDB consists of:
Acquisitions pursuant to the SPA P1,421,345,978

Additional capital infusion 1,300,000,000
Tender offers 255,354,060
P2,976,700,038
Of this total cost of investment, the consideration transferred for the acquisition of PDB follows:
Acquisitions pursuant to the SPA P1,421,345,978

Tender offers 255,354,060
P1,676,700,038
The amounts recognized as of January 15, 2014 for each major class of PDB’s identifiable assets and liabilities follow:
Fair Value
Assets
Cash and other cash items P494,668,957
Due from BSP 3,577,555,456
Due from other banks 1,656,392,757
Financial assets at FVPL 3,814,777,937
AFS financial assets 52,565,694
HTM financial assets 66,171,345
Loans and receivables 34,146,744,005
Accrued interest receivable 387,443,769
Investment in subsidiaries and associates 221,234,211
Bank premises, furniture, fixtures and equipment (Note 11) 1,014,821,636
Investment properties (Note 12) 3,083,730,560
Branch licenses (Note 13) 289,500,000
Other assets 354,547,080
Total assets P49,160,153,407
(Forward)
Fair Value
Liabilities
Deposit liabilities
Demand P7,057,104,264
Savings 5,628,037,794
Time 31,884,793,547
44,569,935,605
Bills payable 1,871,684,889
Manager’s checks 172,254,572
Accrued interest and other expenses 433,636,907
Deferred tax liability 442,778,621
Subordinated debt 1,775,616,780
Other liabilities 396,344,083
Total liabilities 49,662,251,457
Net liabilities P502,098,050
Acquired receivables as of January 15, 2014 include receivables from customers with fair value of P32,407.60 million, sales contracts
receivable of P955.70 million, unquoted debt securities of P931.11 million, and accounts receivable of P199.78 million. The gross contractual
amounts of these receivables amounted to P33,976.70 million, P1,012.42 million, P931.39 million, and P496.49 million, respectively, with
estimated probable losses on receivables from customers of P1,587.75 million, sales contracts receivable of P16.73 million, and accounts
receivable of P296.71 million. These estimated amounts not expected to be collected were considered in the determination of the fair
value of the receivables as of January 15, 2014.
The MB granted the Parent Company with incentives allowed under the Strengthening Program for Rural Bank (SPRB) Plus Framework.
The incentives which are in the form of waiver of special branch licensing fees consist of:
Thirty (30) new branches in restricted areas P600,000,000

Thirty-five (35) branches to be transferred from unrestricted to restricted areas 700,000,000
1,300,000,000
Deferred tax liability 390,000,000
P910,000,000
Goodwill from acquisition is computed as follows:
Consideration transferred P1,676,700,038

Less: Fair value of identifiable assets and liabilities acquired
Net liabilities of PDB (P502,098,050)
BSP incentives, net of deferred tax liability (Note 13) 910,000,000 407,901,950
P1,268,798,088
As of December 31, 2014, the Parent Company is currently awaiting for the remaining acquisition-related requests and approvals, the result
of which may entail changes to the fair value of identifiable assets and liabilities acquired and the resulting goodwill. The Parent Company
will update these amounts, if necessary, once the outcome is finalized.
Acquisition-related costs amounting to P6.39 million are included under various operating expenses in the statements of income.
Since the acquisition date, the amounts of revenue and net losses of PDB included in the consolidated statement of income for the year
ended December 31, 2014 amounted to P2.78 billion and P266.93 million, respectively.
Had the acquisition of PDB occur at the beginning of the year, the Group’s revenue and net income for the year ended December 31, 2014
would have increased by P215.24 million and decreased by P158.32 million, respectively.
Cash flow on acquisition follows:
Cash and cash equivalents acquired from PDB* P5,728,617,170

Cash paid 1,676,700,038
Net cash inflow P4,051,917,132
* Includes Cash and other cash items, Due from BSP and Due from other banks.
Investment in associates
Investment in associates in the consolidated financial statements pertain to the Parent Company’s investment in MCB Life and CBC-PCCI’s
investment in Urban Shelters (accounted for by CBC-PCCI in its financial statements as an investment in an associate) which is carried at
nil amount as of December 31, 2014 and 2013.
In 2014, the Group agreed to sell, transfer, and convey its investments in PDB Properties, Inc. and PDB Insurance Agency, Inc. to a former
significant investor. The sale was duly approved by the PDB’s BOD and duly reported to the BSP. The Group recognized gain on the sale
transaction amounting to P64.56 million included under “Miscellaneous income” (Note 20).
In 2014, the Group’s share in net losses, other comprehensive losses and total comprehensive losses of its associates amounted to
P0.91 million, P3.78 million and P4.69 million, respectively. In 2013, the equity in net earnings of these associates is not significant to
the Group.
MCB Life
On August 2, 2006, the BOD approved the joint project proposal of the Parent Company with Manufacturers Life Insurance Company
(Manulife). Under the proposal, the Parent Company will invest in a life insurance company owned by Manulife, and such company will be
offering innovative insurance and financial products for health, wealth and education through the Parent Company’s branches nationwide.
The life insurance company was incorporated as The Pramerica Life Insurance Company Inc. in 1998 but the name was changed to Manulife
China Bank Life Assurance Corporation on March 23, 2007. The Parent Company acquired 5.00% interest of MCB Life on August 8, 2007.
This investment is accounted for as an investment in an associate by virtue of the Bancassurance Alliance Agreement which provides the
Parent Company to be represented in MCB Life’s BOD and, thus, exercise significant influence over the latter.
The BSP requires the Parent Company to maintain a minimum of 5.00% ownership over MCB Life in order for MCB Life to be allowed to
continue distributing its insurance products through the Parent Company’s branches.
On September 12, 2014, the BSP approved the request of the Parent Company to raise its capital investment in MCB Life from 5.00%
to 40.00% of its authorized capital through purchase of 1.750 million common shares. The transaction resulted in a gain amounting to
P373.30 million included under “Miscellaneous income” (Note 20).
Commission income earned by the Parent Company from its bancassurance agreement amounting to P277.14 million, P294.80 million and
P214.57 million in 2014, 2013 and 2012, respectively, is included under ‘Miscellaneous income’ in the consolidated statements of income
(Note 20).
11. BANK PREMISES, FURNITURE, FIXTURES AND EQUIPMENT
The composition of and movements in this account follow:
Consolidated
Furniture,
Fixtures and Leasehold Construction- 2014
Land Equipment Buildings Improvements in-Progress Total
Cost
Balance at beginning of year P2,471,835,219 P5,109,524,343 P1,544,283,303 P973,243,704 P388,025,941 P10,486,912,510
Additions due to business combination
(Note 10) 409,059,470 166,849,466 360,228,800 64,511,450 14,172,450 1,014,821,636
Additions 15,697,500 875,030,191 22,508,644 99,286,659 51,380,698 1,063,903,692
Disposals/transfers* (13,890,000) (157,526,855) (7,622,736) 28,751,448 (407,582,062) (557,870,205)
Balance at end of year 2,882,702,189 5,993,877,145 1,919,398,011 1,165,793,261 45,997,027 12,007,767,633
Accumulated Depreciation
and Amortization
Balance at beginning of year − 3,905,012,642 749,473,356 547,857,273 − 5,202,343,271
Depreciation and amortization − 597,035,729 80,174,173 126,499,820 − 803,709,722
Disposals/transfers* − (246,268,670) 5,417,050 (10,829,812) − (251,681,432)
Balance at end of year − 4,255,779,701 835,064,579 663,527,281 − 5,754,371,561
Accumulated Impairment
(Note 15)
Balance at beginning of year − 4,628,835 − − − 4,628,835
Reclassification − (4,269,133) 2,383,380 − − (1,885,753)
Balance at end of year − 359,702 2,383,380 − − 2,743,082
Net Book Value at End of Year P2,882,702,189 P1,737,737,742 P1,081,950,052 P502,265,980 P45,997,027 P6,250,652,990
*Includes transfers to investment properties amounting to P372.14 million.
Consolidated
Furniture,
Cost
Balance at beginning of year P2,464,639,930 P4,615,682,659 P1,526,411,978 P853,865,207 P− P9,460,599,774
Additions 632,080,471 15,392,179 129,742,485 388,025,941 1,165,241,076
Disposals/transfers* 7,195,289 (138,238,787) 2,479,146 (10,363,988) − (138,928,340)
Balance at end of year 2,471,835,219 5,109,524,343 1,544,283,303 973,243,704 388,025,941 10,486,912,510
and Amortization
Balance at beginning of year − 3,583,863,946 651,028,573 470,390,884 − 4,705,283,403
Depreciation and amortization − 458,386,422 98,452,429 88,688,560 − 645,527,411
Disposals/transfers* − (137,237,726) (7,646) (11,222,171) − (148,467,543)
Balance at end of year P− P3,905,012,642 P749,473,356 P547,857,273 P− P5,202,343,271
(Forward)
Consolidated
Furniture,
Accumulated Impairment (Note 15)
Balance at beginning of year P− P− P− P− P− P−
Reclassification − 4,628,835 − − − 4,628,835
Balance at end of year − 4,628,835 − − − 4,628,835
Net Book Value at End of Year P2,471,835,219 P1,199,882,866 P794,809,947 P425,386,431 P388,025,941 P5,279,940,404
*Includes transfers from investment properties amounting to P15.44 million.
Parent Company
Furniture,
Cost
Balance at beginning of year P2,321,830,036 P4,757,901,374 P1,105,490,685 P827,864,492 P388,025,941 P9,401,112,528
Additions – 773,105,943 5,843,238 73,936,717 42,388,270 895,274,168
Disposals/transfers* – (144,297,788) (220,461) 7,963,398 (385,119,941) (521,674,792)
and Amortization
Balance at beginning of year – 3,733,736,173 417,882,656 523,845,994 – 4,675,464,823
Depreciation and amortization – 452,723,015 27,038,218 67,552,400 – 547,313,633
Disposals/reclassification – (199,142,903) 1,624,498 1,253,215 – (196,265,190)
Balance at end of year – 3,987,316,285 446,545,372 592,651,609 – 5,026,513,266
*Includes transfers to investment properties amounting to P372.14 million.
Parent Company
Furniture,
Cost
Balance at beginning of year P2,321,830,036 P4,343,050,069 P1,099,864,750 P739,962,496 P– P8,504,707,351
Additions – 514,451,998 5,625,935 86,432,155 388,025,941 994,536,029
Disposals/transfers – (99,600,693) – 1,469,841 − (98,130,852)
and Amortization
Balance at beginning of year – 3,423,135,745 385,123,501 455,588,421 – 4,263,847,667
Depreciation and amortization – 405,742,449 32,766,801 67,523,136 – 506,032,386
Disposals/reclassification – (95,142,021) (7,646) 734,437 – (94,415,230)
Balance at end of year – 3,733,736,173 417,882,656 523,845,994 – 4,675,464,823
The Group adopted the deemed cost model as of January 1, 2004 and considered the carrying value of the land determined under its
previous accounting method (revaluation method) as the deemed cost of the asset as of January 1, 2005. Accordingly, revaluation increment
amounting to P1.28 billion was closed to surplus (Note 22) in 2011.
As of December 31, 2014 and 2013, the gross carrying amount of fully depreciated furniture, fixtures and equipment still in use amounted
to P2.00 billion and P1.71 billion, respectively, for the Group and P1.75 billion and P1.68 billion, respectively, for the Parent Company.
In 2012, depreciation and amortization amounting to P697.54 million and P511.20 million for the Group and Parent Company, respectively,
are included in the statements of income under ‘Depreciation and amortization’ account.
12. INVESTMENT PROPERTIES
The composition of and movements in this account follow:
Consolidated
Buildings and 2014
Land Improvements Total
Cost
Balance at beginning of year P3,275,158,506 P1,241,340,849 P4,516,499,355
Additions due to business combination (Note 10) 2,410,795,633 672,934,927 3,083,730,560
Additions 769,853,310 773,170,730 1,543,024,040
Disposals/write-off/transfers* (1,096,817,029) (282,776,884) (1,379,593,913)
Balance at end of year 5,358,990,420 2,404,669,622 7,763,660,042
Balance at beginning of year − 665,642,871 665,642,871
Depreciation and amortization − 119,489,803 119,489,803
Disposals/write-off/transfers − (131,597,523) (131,597,523)
Balance at end of year − 653,535,151 653,535,151
Accumulated Impairment Loss (Note 15)
Balance at beginning of year 1,233,158,800 207,168,192 1,440,326,992
Provisions during the year 18,478,733 37,601,023 56,079,756
Disposals/write-off/reclassification (159,403,889) 6,300,118 (153,103,771)
Balance at end of year 1,092,233,644 251,069,333 1,343,302,977
Net Book Value at End of Year P4,266,756,776 P1,500,065,138 P5,766,821,914
*Includes transfers from bank premises amounting to P372.14 million.
Consolidated
Buildings and 2013
Cost
Additions 372,157,950 65,350,797 437,508,747
Disposals/write-off/transfers* (631,380,624) (208,749,601) (840,130,225)
Balance at beginning of year − 660,649,571 660,649,571
Depreciation and amortization − 107,358,622 107,358,622
Disposals/write-off/transfers − (102,365,322) (102,365,322)
Balance at end of year − 665,642,871 665,642,871
Balance at beginning of year 1,306,987,244 132,172,378 1,439,159,622
Provisions during the year − 2,580,829 2,580,829
Disposals/write-off/reclassification (73,828,444) 72,414,985 (1,413,459)
Net Book Value at End of Year P2,041,999,706 P368,529,786 P2,410,529,492
*Includes transfers to bank premises amounting to P15.44 million.
Parent Company
Buildings and 2014
Cost
Additions 57,867,574 440,387,381 498,254,955
Disposals/write-off/transfers* (753,419,954) (188,522,847) (941,942,801)
Balance at beginning of year – 636,785,271 636,785,271
Depreciation and amortization – 83,263,844 83,263,844
Disposals/write-off/transfers – (131,360,473) (131,360,473)
Balance at end of year P– P588,688,642 P588,688,642
(Forward)
Parent Company
Buildings and 2014
Balance at beginning of year P1,230,710,193 P202,388,566 P1,433,098,759
Disposals/write-off/reclassification (218,862,038) – (218,862,038)
*Includes transfers from bank premises amounting to P372.14 million.
Parent Company
Buildings and 2013
Cost
Additions 359,613,722 60,015,237 419,628,959
Disposals/write-off/transfers (597,960,384) (161,821,126) (759,781,510)
Balance at beginning of year – 636,022,201 636,022,201
Depreciation and amortization – 89,714,056 89,714,056
Disposals/write-off – (88,950,986) (88,950,986)
Balance at end of year – 636,785,271 636,785,271
Balance at beginning and end of year 1,230,710,193 202,388,566 1,433,098,759
The Group’s investment properties consist entirely of real estate properties acquired in settlement of loans and receivables. The difference
between the fair value of the investment property upon foreclosure and the carrying value of the loan is recognized under ‘Gain on asset
foreclosure and dacion transactions’ in the statements of income.
In 2012, depreciation and amortization amounting to P127.76 million and P109.72 million for the Group and Parent Company, respectively,
are included in the statements of income under ‘Depreciation and amortization’ account.
Details of rental income earned and direct operating expenses incurred on investment properties follow:
Consolidated
2014 2013 2012
Rent income on investment properties P29,167,406 P13,392,985 P36,590,737
Direct operating expenses on investment properties
generating rent income 21,800,656 6,733,827 5,298,199
Direct operating expenses on investment properties not

Parent Company
2014 2013 2012
Rent income on investment properties P5,903,380 P8,833,767 P16,058,824
Direct operating expenses on investment properties
Direct operating expenses on investment properties not
Rent income earned from leasing out investment properties is included under ‘Miscellaneous income’ in the statements of income
(Note 20).
As of December 31, 2014 and 2013, fair values of investment properties amounted to P9.84 billion and P6.56 billion, respectively, for the
Group and P5.73 billion and P6.18 billion, respectively, for the Parent Company.
On August 26, 2011, the Parent Company was registered as an Economic Zone Information Technology (IT) Facilities Enterprise with
the Philippine Economic Zone Authority (PEZA) to operate and maintain a proposed 17-storey building located inside the CBP-IT Park in
Barangays Mabolo, Luz, Hipodromo, Carreta, and Kamputhaw, Cebu City, for lease to PEZA-registered IT enterprises, and to be known as
Chinabank Corporate Center. This registration is under PEZA Registration Certificate No. 11-03-F.
Under this registration, the Bank is entitled to five percent (5.00%) final tax on gross income earned from locator IT enterprises and related
operations in accordance with existing PEZA rules. The Bank shall also be exempted from the payment of all national and local taxes in
relation to this registered activity.
13. GOODWILL AND BRANCH LICENSES
Goodwill and branch license consist of:

2014 2013 2014 2013
Branch licenses P2,427,100,000 P837,600,000 P455,000,000 P455,000,000
Goodwill (Note 10) 1,491,639,289 222,841,201 222,841,201 222,841,201
Goodwill
Goodwill represents the excess of the acquisition costs over the fair value of the identifiable assets and liabilities of companies acquired
by the Group.
Branch Licenses
Branch licenses arose from the acquisitions of CBSI, Unity Bank, and PDB.
2014 2013
Branch license from CBSI acquisition P477,600,000 P477,600,000
Branch license from Unity Bank acquisition 360,000,000 360,000,000
Branch license from PDB acquisition (Note 10) 1,589,500,000 –
Total P2,427,100,000 P837,600,000
Branch licenses and goodwill in the Parent Company’s balance sheet amounting to P455.00 million and P222.84 million, respectively,
arose from the Parent Company’s acquisition of CBSI in 2007.
The Group attributed the goodwill arising from its acquisition of CBSI and PDB to factors such as increase in geographical presence and
customer base due to the branches acquired. None of the goodwill recognized is expected to be deductible for income tax purposes.
The Parent Company’s Branch Banking Group (BBG) has been identified as the CGU for impairment testing of the goodwill. The BBG has
also been identified as the CGU for impairment testing of the branch licenses.
The recoverable amount of the CGU has been determined based on a value-in-use calculation using cash flow projections from financial
budgets approved by senior management covering a five-year period, which do not include restructuring activities that the Group is not yet
committed to or significant future investments that will enhance the asset base of the CGU being tested. The discount rate applied to cash
flow projections is 9.87% in 2014 and 12.05% in 2013 for the goodwill and branch licenses arising from the acquisition of CBSI and 9.47%
in 2014 for the branch licenses arising from the acquisition of Unity Bank. Cash flows beyond the five-year period are extrapolated using a
steady growth rate of 1.00% in 2014 and 2013, which does not exceed the long-term average growth rate for the industry.
The calculation of the value-in-use of the CGU is most sensitive to the following assumptions:
• Interest margin
• Discount rates
• Market share during the budget period
• Steady growth rate used to extrapolate cash flows beyond the budget period
• Local inflation rates
With regard to the assessment of value-in-use of the CGU, management believes that no reasonably possible change in any of the above
key assumptions would cause the carrying value of the goodwill and branch licenses to materially exceed its recoverable amount as of
December 31, 2014 and 2013.
14. OTHER ASSETS

2014 2013 2014 2013
Financial Assets
Accounts receivable P2,537,642,062 P2,246,848,092 P1,727,382,224 P2,050,625,476
SCR 1,267,562,638 496,495,246 378,169,805 425,543,982
RCOCI 170,538,668 74,677,585 141,196,064 74,677,585
Miscellaneous
Prepaid expenses 188,933,455 55,472,738 65,951,726 53,293,366
Documentary stamps 119,175,532 65,566,545 78,411,670 65,566,545
Sundry debit 56,156,157 80,689,768 35,551,585 80,689,768
Others 576,367,032 347,215,215 292,959,184 348,381,996
940,632,176 548,944,266 472,874,165 547,931,675
Total 4,916,375,544 3,366,965,189 2,719,622,258 3,098,778,718
Nonfinancial Assets
Net plan assets (Note 23) 926,670,675 1,504,128,446 926,670,675 1,502,441,475
Creditable withholding taxes 657,434,121 691,661,831 635,094,492 540,295,445
Miscellaneous 181,181,463 – – –
Total 1,765,286,259 2,195,790,277 1,561,765,167 2,042,736,920
6,681,661,803 5,562,755,466 4,281,387,425 5,141,515,638
Allowance for impairment and credit losses
(Note 15) (706,181,780) (761,634,930) (641,658,107) (743,048,784)
P5,975,480,023 P4,801,120,536 P3,639,729,318 P4,398,466,854
Accounts Receivable
As of December 31, 2014 and 2013, about 68.60% and 72.45%, respectively, of the Group’s accounts receivable represents final
withholding taxes (FWT) imposed by the Bureau of Internal Revenue (BIR) and withheld by the Bureau of Treasury (BTr) from
the proceeds collected by the Group upon maturity of the Poverty Eradication and Alleviation Certificates (PEACe) bonds on
October 18, 2011.
On October 17, 2011, the Parent Company together with seven other banks filed a joint petition against the BIR’s decision to impose 20.00%
FWT on PEACe bonds. The high court issued a temporary restraining order in favor of these banks on the same day and ordered these
banks to place in escrow an amount equivalent to the disputed withholding tax until final decision is rendered. However, the government
withheld the 20.00% FWT from the proceeds of the PEACe bonds and held it in an escrow account with the Land Bank of the Philippines.
On January 13, 2015, the Supreme Court ordered the BTr to release to the bondholders the amount corresponding to the 20.00% FWT.
As discussed in more detail in Note 2, the Parent Company considers several factors in determining whether a financial asset is impaired,
including the present value of the expected future cash flows discounted at the asset’s original contractual effective rate. As of
December 31, 2014 and 2013, the Parent Company, in consultation with its legal counsel, has determined that the said accounts receivable
is collectible.
Accounts receivable also includes noninterest bearing advances to officers and employees, with terms ranging from 1 to 30 days and
receivables of the Parent Company from automated teller machine (ATM) transactions of clients of other banks through any of the Parent
Company’s ATM terminals.
Miscellaneous Assets
Miscellaneous assets - others consist mainly of documentary stamps, unissued stationary and supplies, inter-office float items, security
deposits, deposits for various services.
The following tables present the reconciliation of the movement of the allowance for impairment and credit losses on other assets:
Consolidated
Accounts
Receivable SCR Miscellaneous Total
At January 1, 2014 P531,498,853 P22,195,778 P207,940,299 P761,634,930
Provisions during the year (Note 15) 76,642,298 7,925,094 644,457 85,211,849
Transfers/others (94,725,122) 4,103,164 (50,043,041) (140,664,999)
At December 31, 2014 P513,416,029 P34,224,036 P158,541,715 P706,181,780
At January 1, 2013 P422,083,499 P14,778,501 P194,659,551 P631,521,551

Provisions during the year (Note 15) 99,450,446 2,786,601 1,520,770 103,757,817
Transfers/others 9,964,908 4,630,676 11,759,978 26,355,562
At December 31, 2013 P531,498,853 P22,195,778 P207,940,299 P761,634,930
Parent Company
Accounts
Receivable SCR Miscellaneous Total
At January 1, 2014 P519,628,309 P21,759,709 P201,660,766 P743,048,784
Provisions during the year (Note 15) 38,363 – (804,214) (765,851)
Transfers/others (59,716,990) 4,049,414 (44,957,250) (100,624,826)
At December 31, 2014 P459,949,682 P25,809,123 P155,899,302 P641,658,107
At January 1, 2013 P410,412,520 P14,342,432 P188,979,317 P613,734,269
Provisions during the year (Note 15) 97,463,494 2,786,601 921,469 101,171,564
Transfers/others 11,752,295 4,630,676 11,759,980 28,142,951
At December 31, 2013 P519,628,309 P21,759,709 P201,660,766 P743,048,784
15. ALLOWANCE FOR IMPAIRMENT AND CREDIT LOSSES
Changes in the allowance for impairment and credit losses are as follows:

2014 2013 2014 2013
Balances at beginning of year:
Loans and receivables P6,633,080,280 P6,779,450,022 P6,316,979,860 P6,566,449,815
Investment properties 1,440,326,992 1,439,159,622 1,433,098,759 1,433,098,759
Accrued interest receivable 97,974,239 81,113,369 97,428,688 80,567,819
AFS financial assets 39,615,494 39,625,921 6,322,971 6,333,398
Bank premises, furniture, fixtures and equipment 4,628,835 – – –
Other assets 761,634,930 631,521,551 743,048,784 613,734,269
8,977,260,770 8,970,870,485 8,596,879,062 8,700,184,060
Provisions charged to operations 440,901,390 414,335,872 100,920,462 278,540,863
Accounts charged off and others (513,564,735) (407,945,587) (531,961,731) (381,845,861)
(72,663,345) 6,390,285 (431,041,269) (103,304,998)
Balances at end of year:
Loans and receivables (Note 9) 6,734,549,993 6,633,080,280 6,225,088,446 6,316,979,860
Investment properties (Note 12) 1,343,302,977 1,440,326,992 1,214,236,721 1,433,098,759
Accrued interest receivable 79,077,099 97,974,239 78,531,548 97,428,688
AFS financial assets (Note 8) 38,742,494 39,615,494 6,322,971 6,322,971
Bank premises, furniture, fixtures and equipment
(Note 11) 2,743,082 4,628,835 – –
Other assets (Note 14) 706,181,780 761,634,930 641,658,107 743,048,784
P8,904,597,425 P8,977,260,770 P8,165,837,793 P8,596,879,062
At the current level of allowance for impairment and credit losses, management believes that the Group has sufficient allowance to cover
any losses that may be incurred from the non-collection or non-realization of its loans and receivables and other risk assets.
A reconciliation of the allowance for credit losses on loans and receivables from customers, AFS financial assets and accrued interest
receivable follows:
Consolidated
2014
AFS Financial
Loans and Receivables Assets
Accrued
Corporate Consumer Trade-related Unquoted Interest
Lending Lending Lending Others Total Securities Receivable
At January 1, 2014 P5,177,809,362 P719,544,318 P735,545,297 P181,303 P6,633,080,280 P39,615,494 P97,974,239
Provisions (recoveries) during the year 133,069,891 170,117,119 (3,250,530) (289,011) 299,647,469 – (37,684)
Transfers/others (244,814,007) 70,337,419 (23,907,914) 206,746 (198,177,756) (873,000) (18,859,456)
At December 31, 2014 P5,066,065,246 P959,998,856 P708,386,853 P99,038 P6,734,549,993 P38,742,494 P79,077,099
Individual impairment P2,486,397,971 P633,034,766 P579,649,691 P99,038 P3,699,181,466 P38,742,494 P79,077,099
Collective impairment 2,579,667,275 326,964,090 128,737,162 – 3,035,368,527 – –
P5,066,065,246 P959,998,856 P708,386,853 P99,038 6,734,549,993 P38,742,494 P79,077,099
Consolidated
2013
AFS Financial
Accrued
Provisions (recoveries) during the year 192,318,066 95,180,719 20,673,784 5,096 308,177,665 – (180,439)
Transfers/others (739,100,069) 165,722,186 118,815,858 14,618 (454,547,407) (10,427) 17,041,309
Collective impairment 2,100,852,083 187,504,985 35,678,861 3,599 2,324,039,528 – –
P5,177,809,362 P719,544,318 P735,545,297 P181,303 P6,633,080,280 P39,615,494 P97,974,239
Parent Company
2014
AFS Financial
Accrued
Provisions (recoveries) during the year 104,974,527 – (3,250,530) – 101,723,997 – (37,684)
Transfers/others (223,658,447) 54,118,343 (23,907,914) (167,393) (193,615,411) – (18,859,456)
Collective impairment 2,566,556,988 253,170,592 128,737,162 – 2,948,464,742 – –
P4,842,834,373 P673,853,310 P708,386,853 P13,910 P6,225,088,446 P6,322,971 P78,531,548
Parent Company
2013
AFS Financial
Accrued
Provisions (recoveries) during the year 139,452,126 17,418,732 20,673,784 5,096 177,549,738 – (180,439)
Transfers/others (727,641,130) 181,790,961 118,815,858 14,618 (427,019,693) (10,427) 17,041,308
Collective impairment 1,921,590,264 129,350,373 35,678,861 3,599 2,086,623,097 – –
P4,961,518,293 P619,734,967 P735,545,297 P181,303 P6,316,979,860 P6,322,971 P97,428,688
16. DEPOSIT LIABILITIES
As of December 31, 2014 and 2013, 43.80% and 56.50% respectively, of the total deposit liabilities of the Group are subject to periodic
interest repricing. The remaining deposit liabilities bear annual fixed interest rates ranging from 0.13% to 2.75% in 2014, and 0.13% to
8.25% in 2013 and 2012.
On March 29, 2012, BSP Circular No. 753 was issued providing unification of the statutory and liquidity reserve requirement, non-
remuneration of the unified reserve requirement, exclusion of cash in vault and demand deposits as eligible forms of reserve requirement
compliance, and reduction in the unified reserve requirement ratios. In 2014, the BSP issued Circular No. 830 effective April 11, 2014
increasing the required reserves against deposit liabilities to 19.00%. As of December 31, 2014 and 2013, the Parent Company is in
compliance with such regulation.
As of December 31, 2014 and 2013, due from BSP amounting to P52.35 billion and P48.04 billion, respectively, were set aside as reserves
for deposit liabilities per latest report submitted by the Parent Company to the BSP.
17. BILLS PAYABLE AND SUBORDINATED DEBT
Bills Payable
The Group’s and the Parent Company’s bills payable consist of:

2014 2013 2014 2013
Interbank loans payable P5,165,439,515 P8,240,891,256 P5,165,439,515 P8,240,891,256
Government lending programs 1,155,140,034 28,718,441 12,161,324 28,718,441
Others − 29,584,828 − 29,584,828
P6,320,579,549 P8,299,194,525 P5,177,600,839 P8,299,194,525
Interbank loans payable consist of the following dollar-denominated borrowings:
Counterparty Average term Rates 2014 2013

Citibank N.A. Manila 2.8 years 1.69% P2,236,000,015 P2,219,750,014
Barclays Bank London 2 years 1.40% 2,035,039,500 2,020,249,969
Wells Fargo Miami 30 days 0.92% 894,400,000 −
JP Morgan Chase London 3 months 0.65% to 0.75% − 4,000,891,273
P5,165,439,515 P8,240,891,256
As of December 31, 2014, the carrying amount of dollar-denominated HTM financial assets pledged by the Parent Company as collateral
for its interbank borrowings amounted to P4.66 billion. The fair value of HTM financial assets pledged as collateral amounted to
P5.33 billion as of December 31, 2014 (Note 8).
As of December 31, 2013, the carrying amount of dollar-denominated HTM and AFS financial assets pledged by the Parent Company as
collateral for its interbank borrowings amounted to P6.81 billion and P2.54 billion, respectively. The fair value of HTM financial assets
pledged as collateral amounted to P8.20 billion as of December 31, 2013.
As of December 31, 2014 and 2013, margin deposits amounting to P338.10 million and P114.33 million, respectively, are deposited with
various counterparties to meet the collateral requirements for its interbank bills payable.
Details of the government lending programs follow:
Consolidated
Land Bank of the Philippines 10 years 4.00% to 8.66% P746,143,433 P1,072,108
Social Security Services 6 years 2.50% to 5.25% 355,202,766 −
Small Business Guaranty and Finance Corporation 4 years 5.00% to 6.50% 40,789,724 −
Development Bank of the Philippines 8 years 4.00% to 8.25% 13,004,111 27,646,333
P1,155,140,034 P28,718,441
Parent Company
Development Bank of the Philippines 6 years 4.00% to 8.25% P11,504,111 P27,646,333
Land Bank of the Philippines 5 years 5.13% 657,213 1,072,108
P12,161,324 P28,718,441
Loans and receivables of the Group and the Parent Company amounting to P1.30 billion and P14.45 million, respectively, as of
December 31, 2014 and P54.44 million as of December 31, 2013, are pledged as collateral for the rediscounting facilities (Note 9). Loans
and receivables pledged as collateral shall be released by the rediscounting institution once the rediscount loan has been fully paid upon
maturity. In case a particular loan account pledged as collateral is paid in full by the borrower before it matures, the equivalent discount
value shall be paid by the Group to the rediscounting institution before the pledged collateral can be released.
Subordinated Debt
The Group’s subordinated debt consists of Tier 2 Notes issued by PDB in 2010 and 2009.
2010 Tier 2 Notes

PDB issued additional unsecured Subordinated Notes (the Notes) due in 2020 qualifying as Upper Tier 2 Capital and Lower Tier 2 Capital
in December 2010. The Tier 2 Notes issuance was approved by the BOD of PDB in 2009. Among the significant terms and conditions of
the Notes follow:
• Upper Tier 2 Notes - P1.03 billion with coupon interest rate of 10.25% p.a.
• Lower Tier 2 Notes - P145.00 million with coupon interest rate of 8.75% p.a.
The date of issuance and date of maturity of the Tier 2 Notes issued in 2010 are as follow:
Type Issue Date Maturity Date Principal

Upper Tier 2 8-Feb-10 8-Feb-20 P400,000,000
26-Mar-10 26-Mar-20 65,000,000
26-Apr-10 26-Apr-20 120,000,000
28-Jul-10 28-Jul-20 445,000,000
P1,030,000,000
Type Issue Date Maturity Date Principal

Lower Tier 2 4-Jan-10 4-Jan-20 P20,000,000
24-Feb-10 24-Feb-20 20,000,000
26-Mar-10 26-Mar-20 70,000,000
26-Apr-10 26-Apr-20 25,000,000
28-Jul-10 28-Jul-20 10,000,000
P145,000,000
The Upper Tier 2 Notes bears interest rate at 10.25% per annum payable semi-annually and will mature in 2020 provided that the Notes are
not previously redeemed by PDB in 2015.
The Lower Tier Notes bears interest rate at 8.75% per annum payable semi-annually in arrears. Unless the Lower Tier 2 Notes are
previously redeemed, the interest rate from the issuances will be reset at the equivalent of the 5-year PDST-F Benchmark bid yield as
displayed on the PDS Treasury Reference Rates (as of the first day of the eleventh interest period) plus 5.62% which shall be payable semi-
annually in arrears starting 2015.
2009 Tier 2 Notes

On June 24, 2009, PDB’s BOD approved the raising of Upper Tier 2 Notes and Lower Tier 2 Notes through the issuance of private
negotiated notes of up to P1.50 billion and P1.00 billion, respectively, maturing in ten years but callable after five years from issue date.
The issuance of the foregoing Notes under the terms approved by the PDB’s BOD was pursuant to the authority given by the BSP to PDB
on December 3, 2009.
The Notes will constitute direct, unconditional, unsecured and subordinated obligations of PDB, and will, at all times, rank at an equal
rate and without any preference among themselves, and at least equally with all other present and future unsecured and subordinated
obligation of PDB. However, claims of Noteholders will enjoy priority over the rights and claims of holders of all classes of equity securities
of PDB, including holders of preference shares. Noteholders or their transferees shall not be allowed, and hereby waive their right, to offset
any amount that may be due to PDB against the Notes. The Notes, like other subordinated indebtedness of PDB, are subordinated to the
claims of depositors and ordinary creditors, are not deposits, and are not guaranteed nor insured by PDB or any party related to PDB, such
as its subsidiaries and affiliates, or the Philippine Deposit Insurance Corporation (PDIC), or any other person. The Notes shall not be used
as collateral for any loan made by PDB or any of its subsidiaries or affiliates.
Subject to certain regulatory approval requirements, PDB may, after 5 years from issuance date, redeem all and not less than all of the
outstanding Notes, at a redemption price equal to the issue price of the Notes together with accrued and unpaid interest based on the
interest rate thereon.
In December 2009, PDB issued Unsecured Subordinated Notes due in 2019 qualifying as Upper Tier 2 Capital and Lower Tier 2 Capital.
Among the significant terms and conditions of the issuance of the Notes follow:
• Upper Tier 2 Notes - P20.00 million with coupon interest rate of 10.25% p.a.
• Lower Tier Notes - P505.00 million with coupon interest rate of 8.75% p.a.
The Upper Tier Notes, from (and including) December 8, 2009 to (but excluding) December 8, 2019, bears interest rate at 10.25% per
annum payable semi-annually in arrears on June 8 and December 8 of each year, commencing June 8, 2010. The Upper Tier Notes will
mature on December 8, 2019 if not redeemed by PDB on December 8, 2014.
The Lower Tier Notes, from (and including) December 8, 2009 to (but excluding) December 8, 2019, bears interest rate at 8.75% per
annum payable semi-annually in arrears on June 8 and December 8 of each year, commencing June 8, 2010. Unless the Lower Tier 2
Notes are previously redeemed, the interest rate from (and including) December 9, 2014 to (but excluding December 8, 2019) will be reset
at the equivalent of the 5-year PDST-F Benchmark bid yield as displayed on the PDS Treasury Reference Rates (as of the first day of the
eleventh interest period) plus 5.62% which shall be payable semi-annually in arrears on June 8 and December 8 of each year, commencing
June 8, 2015. The Lower Tier 2 Notes will mature on December 8, 2019, provided that the Notes are not previously redeemed.
On January 15, 2014, the Parent Company obtained control over PDB, and the latter became a subsidiary of the former. Based on existing
regulations applicable to universal and commercial banks, including their subsidiary banks, the Notes of PDB shall no longer be qualified as
tier 2 capital in the computation of the capital adequacy ratio (CAR). Given this, PDB sought approval from the BSP to redeem the Notes,
which approval was granted on September 18, 2014.
As of December 31, 2014, the face value of Notes redeemed by PDB amounted to P0.53 billion. The remaining balance of the Notes shall
be redeemed in 2015.
In 2014, PDB is in compliance with the terms and conditions upon which the Notes have been issued.
18. ACCRUED INTEREST AND OTHER EXPENSES

2014 2013 2014 2013
Accrued payable for employee benefits P868,629,045 P752,231,486 P810,315,611 P752,231,486
Accrued interest payable 392,364,802 388,391,903 248,738,441 362,063,310
Accrued taxes and other licenses 147,395,062 134,295,387 147,395,062 134,188,984
Accrued lease payable 60,914,579 67,125,802 60,914,579 60,914,579
Accrued other expenses payable 161,445,001 159,880,900 45,111,711 136,222,987
P1,630,748,489 P1,501,925,478 P1,312,475,404 P1,445,621,346
19. OTHER LIABILITIES

2014 2013 2014 2013
Accounts payable P1,560,046,220 P862,260,400 P975,542,863 P618,051,235
Due to PDIC 334,448,937 316,812,241 334,448,937 316,812,241
Acceptances payable 334,336,980 954,605,687 334,336,980 954,605,687
Other credits-dormant 191,978,470 188,616,465 191,978,470 188,616,465
Due to the Treasurer of the Philippines 24,629,138 450,277,877 24,629,138 450,277,877
Margin deposits 2,760,646 922,346 2,760,646 922,346
Miscellaneous 780,375,902 281,376,514 251,471,258 193,357,500
Total 3,228,576,293 3,054,871,530 2,115,168,292 2,722,643,351
Nonfinancial liabilities
Withholding taxes payable 101,459,780 106,024,639 67,750,216 93,734,234
Retirement liabilities (Note 23) 305,773,064 46,535,741 – –
Total 407,232,844 152,560,380 67,750,216 93,734,234
P3,635,809,137 P3,207,431,910 P2,182,918,508 P2,816,377,585
Accounts payable includes payables to suppliers and service providers, and loan payments and other charges received from customers in
advance.
Miscellaneous liabilities mainly include sundry credits, inter-office float items, and dormant deposit accounts.
20. OTHER OPERATING INCOME AND MISCELLANEOUS EXPENSES
Trading and Securities Gain


2014 2013 2012 2014 2013 2012
Financial assets at FVPL:
Held-for-trading P28,504,111 (P93,904,356) P247,651,111 (P45,421,486) (P93,904,356) P247,651,111
Designated at FVPL (40,400,975) 73,749,921 – (40,400,975) 73,749,921 –
Derivatives assets (Note 24) 3,065,433 (81,352,004) (33,294,321) 3,065,433 (81,352,004) (33,294,321)
AFS financial assets 544,094,215 2,006,391,602 2,701,942,417 541,652,784 1,716,314,402 2,572,816,115
P535,262,784 P1,904,885,163 P2,916,299,207 P458,895,756 P1,614,807,963 P2,787,172,905
Service Charges, Fees and Commissions

Details of this account are as follows:

2014 2013 2012 2014 2013 2012
Service and collection charges
Deposits P659,597,106 P505,554,168 P591,106,429 P610,331,799 P485,209,813 P578,003,661
Loans 97,683,102 85,299,409 23,839,053 30,743,175 35,839,305 23,527,821
Others 309,495,462 197,757,214 43,193,556 203,196,043 108,482,813 42,294,399
Fees and commissions 495,031,685 367,849,071 388,213,255 376,377,819 374,542,144 305,341,215
P1,561,807,355 P1,156,459,862 P1,046,352,293 P1,220,648,836 P1,004,074,075 P949,167,096
Miscellaneous Income
Parent Company
2014 2013 2012 2014 2013 2012
Dividends (Note 8) P311,073,334 P486,381,921 P9,516,508 P311,073,334 P486,381,921 P9,516,508
Bancassurance (Note 10) 277,138,302 294,797,215 214,571,987 277,138,302 294,797,215 214,571,987
Recovery of charged off assets 93,797,254 293,043 2,518,353 79,255,903 293,043 2,518,353
Rental on bank premises 56,183,492 28,693,424 27,795,805 28,642,376 28,693,424 27,795,805
Fund transfer fees 48,792,310 104,613,783 46,389,926 48,792,310 104,613,783 46,389,926
Late fees 30,835,850 18,842,213 34,928,226 30,835,850 18,842,213 34,928,225
Rental safety deposit boxes 20,016,625 14,479,453 13,783,285 19,385,042 14,479,453 13,783,285
Participation fee − 32,778,522 32,317,059 − 32,778,522 32,317,059
Miscellaneous income (Notes 10
and 12) 749,314,209 105,095,313 292,122,955 222,805,135 101,953,156 117,992,510
P1,587,151,376 P1,085,974,887 P673,944,104 P1,017,928,252 P1,082,832,730 P499,813,658
Dividends earned by the Parent Company from its investment in preferred shares designated at FVPL amount to P301.58 million,
P478.25 million and nil in 2014, 2013 and 2012, respectively.
Miscellaneous Expenses

2014 2013 2012 2014 2013 2012
Information technology P326,718,035 P208,503,155 P214,630,676 P236,261,197 P206,865,179 P212,599,285
Litigations 149,996,498 119,596,154 29,061,855 61,452,183 114,607,943 28,716,149
Freight 104,471,796 48,446,195 46,067,749 100,036,640 48,446,195 45,306,771
Broker’s fee 52,214,521 61,272,891 31,795,328 25,959,031 61,272,891 31,795,328
Clearing and processing fee 23,143,094 18,354,364 20,605,749 16,784,134 18,354,364 20,605,749
Membership fees and dues 19,227,531 15,435,837 16,388,146 17,697,889 15,435,837 16,388,146
Miscellaneous expense 346,026,295 218,130,013 245,968,277 267,120,441 215,395,594 256,104,395
P1,021,797,770 P689,738,609 P604,517,780 P725,311,515 P680,378,003 P611,515,823
21. MATURITY ANALYSIS OF ASSETS AND LIABILITIES
The following tables present both the Group’s and Parent Company’s assets and liabilities as of December 31, 2014 and 2013
analyzed according to when they are expected to be recovered or settled within one year and beyond one year from the respective
balance sheet date:
Consolidated
2014 2013
Within Over Within Over
Twelve Months Twelve Months Total Twelve Months Twelve Months Total
Financial assets
Cash and other cash items P10,734,059,421 P– P10,734,059,421 P7,281,640,616 P– P7,281,640,616
Due from BSP 67,451,647,883 – 67,451,647,883 78,968,132,522 – 78,968,132,522
Due from other banks 17,552,823,222 – 17,552,823,222 23,885,538,128 – 23,885,538,128
Interbank loans receivable 223,600,000 – 223,600,000 – – –
Financial assets at FVPL 4,085,411,101 4,355,287,587 8,440,698,688 5,556,344,777 4,865,078,276 10,421,423,053
AFS financial assets - gross 570,907,514 37,944,687,292 38,515,594,806 854,830,732 43,534,041,537 44,388,872,269
HTM financial assets 1,008,033,006 11,101,310,598 12,109,343,604 802,043,787 11,348,503,042 12,150,546,829
Loans and receivables - gross 142,905,973,677 154,744,723,962 297,650,697,639 106,494,552,162 121,163,831,562 227,658,383,724
Accrued interest receivable – gross 2,316,057,634 – 2,316,057,634 1,997,383,028 − 1,997,383,028
Other assets - gross 3,735,554,970 1,180,820,574 4,916,375,544 2,969,480,219 397,484,970 3,366,965,189
250,584,068,428 209,326,830,013 459,910,898,441 228,809,945,971 181,308,939,387 410,118,885,358
Nonfinancial assets
Bank premises, furniture, fixtures
and equipment - gross – 6,253,396,072 6,253,396,072 − 5,284,569,239 5,284,569,239
Investment properties - gross – 7,110,124,891 7,110,124,891 − 3,850,856,484 3,850,856,484
Deferred tax assets – 848,686,105 848,686,105 – 627,795,898 627,795,898
Investments in associates – 534,881,164 534,881,164 – 21,245,838 21,245,838
Branch licenses – 2,427,100,000 2,427,100,000 – 837,600,000 837,600,000
Goodwill – 1,491,639,289 1,491,639,289 – 222,841,201 222,841,201
Other assets - gross 658,215,554 1,107,070,705 1,765,286,259 691,661,831 1,504,128,446 2,195,790,277
658,215,554 19,772,898,226 20,431,113,780 691,661,831 12,349,037,106 13,040,698,937
Less:
Allowances for impairment and credit
losses (Note 15) (8,904,597,425) (8,977,260,770)
Unearned interest and discounts
(Note 9) (497,418,129) (484,400,529)
(9,402,015,554) (9,461,661,299)
P470,939,996,667 P413,697,922,996
Deposit liabilities P373,561,333,023 P25,740,211,035 P399,301,544,058 P343,800,398,152 P10,467,804,528 P354,268,202,680
Bills payable 3,070,484,588 3,250,094,961 6,320,579,549 4,014,507,046 4,284,687,479 8,299,194,525
Manager’s checks 1,221,394,875 – 1,221,394,875 859,892,248 − 859,892,248
Accrued interest and other expenses 553,809,803 – 553,809,803 548,272,803 − 548,272,803
Derivative liabilities 101,609,941 – 101,609,941 154,808,366 − 154,808,366
Subordinated debt 1,188,761,984 – 1,188,761,984 − − –
Other liabilities 3,228,576,293 – 3,228,576,293 3,054,871,530 − 3,054,871,530
382,925,970,507 28,990,305,996 411,916,276,503 352,432,750,145 14,752,492,007 367,185,242,152
Accrued payable for employee benefits – 868,629,045 868,629,045 – 752,231,486 752,231,486
Accrued taxes and other licenses 147,395,062 – 147,395,062 134,295,387 – 134,295,387
Accrued lease payable – 60,914,579 60,914,579 – 67,125,802 67,125,802
Deferred tax liabilities – 962,555,706 962,555,706 – – –
Withholding taxes payable 101,459,780 – 101,459,780 106,024,639 − 106,024,639
Income tax payable 10,943,813 – 10,943,813 6,768,350 − 6,768,350
Retirement liabilities (Note 23) – 305,773,064 305,773,064 − 46,535,741 46,535,741
P383,185,769,162 P31,188,178,390 P414,373,947,552 P352,679,838,521 P15,618,385,036 P368,298,223,557
Parent Company
2014 2013
Within Over Within Over
Twelve Months Twelve Months Total Twelve Months Twelve Months Total
Financial assets
Cash and other cash items P9,295,129,845 P– P9,295,129,845 P7,035,251,105 P– P7,035,251,105
Due from BSP 60,543,866,682 – 60,543,866,682 75,678,312,048 – 75,678,312,048
Due from other banks 15,836,701,053 – 15,836,701,053 23,215,575,357 – 23,215,575,357
Interbank loans receivable 223,600,000 – 223,600,000 – – –
Financial assets at FVPL 4,085,197,427 3,927,237,861 8,012,435,288 5,556,344,777 4,865,078,276 10,421,423,053
AFS financial assets - gross 369,002,650 36,712,558,281 37,081,560,931 854,830,733 42,347,682,831 43,202,513,564
HTM financial assets 995,806,110 10,357,981,717 11,353,787,827 802,043,787 11,320,545,426 12,122,589,213
Loans and receivables - gross 123,283,601,612 128,441,670,607 251,725,272,219 103,235,987,057 114,221,943,877 217,457,930,934
Accrued interest receivable - gross 1,989,208,973 – 1,989,208,973 1,899,023,541 – 1,899,023,541
Other assets - gross 2,415,884,688 303,737,570 2,719,622,258 2,701,293,748 397,484,970 3,098,778,718
219,037,999,040 179,743,186,036 398,781,185,076 220,978,662,153 173,152,735,380 394,131,397,533
Nonfinancial assets
Bank premises, furniture, fixtures
and equipment – 4,748,198,638 4,748,198,638 – 4,725,647,705 4,725,647,705
Investment properties - gross – 3,115,599,550 3,115,599,550 – 3,511,190,767 3,511,190,767
Deferred tax assets – 842,366,600 842,366,600 – 763,461,954 763,461,954
Investments in subsidiaries
and associates – 6,183,223,279 6,183,223,279 – 1,948,995,625 1,948,995,625
Branch licenses – 455,000,000 455,000,000 – 455,000,000 455,000,000
Goodwill – 222,841,201 222,841,201 – 222,841,201 222,841,201
Other assets - gross 635,094,490 926,670,677 1,561,765,167 540,295,445 1,502,441,475 2,042,736,920
635,094,490 16,493,899,945 17,128,994,435 540,295,445 13,129,578,727 13,669,874,172
Less:
Allowances for impairment and credit
losses (Note 15) (8,165,837,793) (8,596,879,062)
Unearned interest and discounts
(Note 9) (242,962,903) (378,681,663)
(8,408,800,696) (8,975,560,725)
P407,501,378,815 P398,825,710,980
Deposit liabilities P333,559,117,376 P7,525,516,836 P341,084,634,212 P332,583,633,864 P7,248,219,623 P339,831,853,487
Bills payable 2,933,882,500 2,243,718,339 5,177,600,839 4,014,507,046 4,284,687,479 8,299,194,525
Manager’s checks 822,179,038 – 822,179,038 704,488,259 – 704,488,259
Accrued interest and other expenses 293,850,152 – 293,850,152 498,286,297 – 498,286,297
Derivative liabilities 101,609,941 – 101,609,941 154,808,366 – 154,808,366
Other liabilities 2,115,168,292 – 2,115,168,292 2,722,643,351 – 2,722,643,351
339,825,807,299 9,769,235,175 349,595,042,474 340,678,367,183 11,532,907,102 352,211,274,285
Accrued payable for employee benefits – 810,315,611 810,315,611 – 752,231,486 752,231,486
Accrued taxes and other licenses 147,395,062 – 147,395,062 134,188,984 – 134,188,984
Accrued lease payable – 60,914,579 60,914,579 – 60,914,579 60,914,579
Withholding taxes payable 67,750,216 – 67,750,216 93,734,234 – 93,734,234
Income tax payable 1,396,937 – 1,396,937 – – –
P340,042,349,514 P10,640,465,365 P350,682,814,879 P340,906,290,401 P12,346,053,167 P353,252,343,568
22. EQUITY
The Parent Company’s capital stock consists of:
2014 2013
Shares Amount Shares Amount
Common stock - 10 par value
Authorized - shares 2,500,000,000 2,000,000,000
Issued and outstanding
Balance at beginning of year 1,427,661,658 P14,276,616,580 1,297,874,230 P12,978,742,300
Stock rights 161,609,878 1,616,098,780 – –
Stock dividends* 127,142,781 1,271,427,810 129,787,428 1,297,874,280
1,716,414,317 P17,164,143,170 1,427,661,658 P14,276,616,580
*The stock dividends declared include fractional shares equivalent to 1,058 shares in 2014 and 5 shares in 2013.
The Parent Company shares are listed in the Philippine Stock Exchange.
On March 5, 2014, the BOD authorized the Parent Company to conduct a rights issue, by way of offering common shares to certain
eligible shareholders. The BSP approved the stock rights offering on March 18, 2014.
The stock rights offering yielded a subscription of 161,609,878 common shares which were listed at the Philippine Stock Exchange on
May 13, 2014. The total proceeds of the stock rights offering amounted to P7.93 billion, net of stock issuance cost of P67.53 million
which was deducted from additional paid in capital.
The additional capital will enable the Parent Company to pursue growth strategies while ensuring that its capital adequacy levels remain
above the new Basel III requirements, particularly in light of the recent acquisition of PDB.
On May 8, 2014, the BOD approved and the stockholders ratified the increase in the Bank’s authorized capital stock from P20.00 billion
to P25.00 billion, or from 2.00 billion to 2.50 billion shares with par value of P10.00 per share. The increase in the Bank’s authorized
capital stock was subsequently approved by the BSP and the SEC on August 7, 2014 and August 29, 2014, respectively.
The summarized information on the Company’s registration of securities under the Securities Regulation Code follows:
Date of SEC Approval Authorized Shares*

April 12, 1991 100,000,000
October 7, 1993 150,000,000
August 30, 1994 200,000,000
July 26, 1995 250,000,000
September 12, 1997 500,000,000
September 5, 2005 1,000,000,000
September 14, 2007 1,600,000,000
September 5, 2008 2,000,000,000
August 29, 2014 2,500,000,000
* Restated to show the effects of the ten-for-one stock split in 2012
As reported by the Parent Company’s transfer agent, Stock Transfer Service, Inc., the total number of stockholders is 1,980 and 1,998 as
of December 31, 2014 and 2013, respectively.
Dividends
On May 8, 2014, the BOD approved the declaration of 8.00% stock and P1.00 per share cash dividends to stockholders of record as of
September 19, 2014. The BSP and SEC approved the dividend declaration on July 2, 2014.
July 19, 2013. The BSP and SEC approved the dividend declaration on June 21, 2013.
July 18, 2012. The BSP and SEC approved the dividend declaration on May 30, 2012.
The computation of surplus available for dividend declaration in accordance with SEC Memorandum Circular No. 11 issued in December
2008 differs to a certain extent from the computation following BSP guidelines.
As of December 31, 2014 and 2013, surplus includes the amount of P1.28 billion, net of deferred tax liability of P547.40 million, representing
transfer of revaluation increment on land which was carried at deemed cost when the Group transitioned to PFRS in 2005 (Note 11). This
amount will be available to be declared as dividends upon sale of the underlying land.
In the consolidated financial statements, a portion of the Group’s surplus corresponding to the net earnings of the subsidiaries and
associates amounting to P233.28 million and P211.67 million as of December 31, 2014 and 2013, respectively, is not available for dividend
declaration. The accumulated equity in net earnings becomes available for dividends upon declaration and receipt of cash dividends from
the investees.
Reserves
In compliance with BSP regulations, 10.00% of the Parent Company’s profit from trust business is appropriated to surplus reserve. This
annual appropriation is required until the surplus reserves for trust business equals 20.00% of the Parent Company’s authorized capital
stock.
Capital Management
The primary objectives of the Group’s capital management are to ensure that it complies with externally imposed capital requirements
and that it maintains strong credit ratings and healthy capital ratios in order to support its business and to maximize shareholders’ value.
The Group manages its capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics
of its activities. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividend payment to shareholders,
return capital to shareholders or issue capital securities. No changes were made in the objectives, policies and processes as of
December 31, 2014 and 2013.
Regulatory Qualifying Capital

Under existing BSP regulations, the determination of the Parent Company’s compliance with regulatory requirements and ratios is based
on the amount of the Parent Company’s unimpaired capital (regulatory capital) as reported to the BSP. This is determined on the basis of
regulatory accounting policies which differ from PFRS in some respects.
In addition, the risk-based capital ratio of a bank, expressed as a percentage of qualifying capital to risk-weighted assets (RWA), should not
be less than 10.00% for both solo basis (head office and branches) and consolidated basis (Parent Company and subsidiaries engaged in
financial allied undertakings but excluding insurance companies). Qualifying capital and RWA are computed based on BSP regulations. RWA
consists of total assets less cash on hand, due from BSP, loans covered by hold-out on or assignment of deposits, loans or acceptances
under letters of credit to the extent covered by margin deposits and other non-risk items determined by the Monetary Board of the BSP.
On August 4, 2006, the BSP, under BSP Circular No. 538, issued the prescribed guidelines implementing the revised risk-based capital
adequacy framework for the Philippine banking system to conform to Basel II capital adequacy framework. The BSP guidelines took effect
on July 1, 2007. Thereafter, banks were required to compute their CAR using these guidelines. As of December 31, 2014, the Group and
the Parent Company’s CAR under BSP Circular No. 538 is 14.88% and 16.11%, respectively.
The regulatory qualifying capital of the Group consists of Tier 1 (core) capital, which comprises paid-up common stock, additional paid-
in capital, surplus including current year profit, surplus reserves and minority interest less required deductions such as unsecured credit
accommodations to directors, officers, stockholders, and other related interests (DOSRI), deferred income tax, and goodwill. The other
component of regulatory capital is Tier 2 (supplementary) capital, which includes general loan loss provision, and net unrealized gains on
AFS equity securities.
Standardized credit risk weights were used in the credit assessment of asset exposures. Third party credit assessments were based on
ratings by Standard & Poor’s, Moody’s and Fitch, while PhilRatings were used on peso-denominated exposures to Sovereigns, MDBs,
Banks, LGUs, Government Corporations, Corporates.
On January 15, 2013, the BSP issued Circular No. 781, Basel III Implementing Guidelines on Minimum Capital Requirements, which
provides the implementing guidelines on the revised risk-based capital adequacy framework particularly on the minimum capital and
disclosure requirements for universal banks and commercial banks, as well as their subsidiary banks and quasi-banks, in accordance with
the Basel III standards. The circular took effect on January 1, 2014.
The Circular sets out a minimum Common Equity Tier 1 (CET1) ratio of 6.00% and Tier 1 capital ratio of 7.50%. It also introduces a capital
conservation buffer of 2.50% comprised of CET1 capital. The BSP’s existing requirement for Total CAR remains unchanged at 10.00% and
this ratio shall be maintained at all times.
Further, existing capital instruments as of December 31, 2010 which do not meet the eligibility criteria for capital instruments under the
revised capital framework shall no longer be recognized as capital upon the effectivity of Basel III. Capital instruments issued under BSP
Circular Nos. 709 and 716 (the circulars amending the definition of qualifying capital particularly on Hybrid Tier 1 and Lower Tier 2 capitals),
starting January 1, 2011 and before the effectivity of BSP Circular No. 781, shall be recognized as qualifying capital until December 31,
2015. In addition to changes in minimum capital requirements, this Circular also requires various regulatory adjustments in the calculation
of qualifying capital.
The CAR of the Group and the Parent Company as of December 31, 2014 as reported to the BSP are shown in the table below.

2014 2013 2014 2013
(Amounts in Million Pesos)
Tier 1 capital P47,857 P41,592 P44,191 P41,272
Less required deductions − 2,597 − 3,236
Sub-total 47,857 38,995 44,191 38,036
Excess from Tier 2 deducted to Tier 1 Capital* − − − −
Net Tier 1 Capital 47,857 38,995 44,191 38,036
Tier 2 Capital 3,196 2,492 2,686 2,381
Less: Required deductions − 121 − 768
Sub-total 3,196 2,371 2,686 1,613
Excess from Tier 2 deducted to Tier 1 Capital* − − − −
Net Tier 2 Capital 3,196 2,371 2,686 1,613
Total qualifying capital P51,053 P41,366 P46,877 P39,649
*Deductions to Tier 2 Capital are capped at its total gross amount and any excess shall be deducted from Tier 1 Capital.

2014 2013 2014 2013
(Amounts in Million Pesos)
Credit RWA P319,508 P244,727 P268,359 P233,605
Market RWA 2,655 3,724 2,389 3,725
Operational RWA 21,025 20,400 20,273 19,910
Total RWA 343,188 268,851 291,021 257,240
Tier 1 capital ratio 13.95% 14.50% 15.18% 14.79%

Total capital ratio 14.88% 15.39% 16.11% 15.41%
Except for PDB, the Group and its individually regulated operations have complied with all externally imposed capital requirements
throughout the period.
As of December 31, 2014, PDB’s CAR did not meet the minimum capital requirements prescribed under BSP Circular 781. However, the
consolidated capital position of the Parent Company, CBS and PDB is in excess of the minimum capital ratios prescribed under Basel III
framework. Consequently, the Parent Company requested approval from the BSP that PDB’s compliance with the minimum capital ratios
prescribed under Basel III framework be assessed based on the Group’s consolidated capital position. The Parent Company requested that
this regulatory relief be granted as part of the merger incentives and shall continue to take effect until the merger of CBS and PDB has been
completed. The Parent Company has committed to infuse the necessary amount of regulatory capital to the merged entity as prescribed
by the BSP and in accordance with the conditions set for the merger.
As of the date of the issuance of the financial statements, the request is still pending with the BSP.
The issuance of BSP Circular No. 639 covering the ICAAP in 2009 supplements the BSP’s risk-based capital adequacy framework under
Circular No. 538. In compliance with this circular, the Parent Company has adopted and developed its ICAAP framework to ensure that
appropriate level and quality of capital are maintained by the Group. Under this framework, the assessment of risks extends beyond the
Pillar 1 set of credit, market and operational risks and onto other risks deemed material by the Parent Company. The level and structure of
capital are assessed and determined in light of the Parent Company’s business environment, plans, performance, risks and budget; as well
as regulatory edicts. BSP requires submission of an ICAAP document every January 31. The Group has complied with this requirement.
23. RETIREMENT PLAN
The Group has separate funded noncontributory defined benefit retirement plans covering substantially all its officers and regular
employees. Under these retirement plans, all covered officers and employees are entitled to cash benefits after satisfying certain age and
service requirements. The latest actuarial valuation studies of the retirement plans were made as of December 31, 2014.
The Group’s annual contribution to the retirement plan consists of a payment covering the current service cost, unfunded actuarial accrued
liability and interest on such unfunded actuarial liability.
The amounts of net defined benefit asset in the balance sheets follow:

2014 2013 2014 2013
Net plan assets (Note 14) P926,670,675 P1,504,128,446 P926,670,675 P1,502,441,475
Retirement liabilities (Note 19) (305,773,064) (46,535,741) – –
P620,897,611 P1,457,592,705 P926,670,675 P1,502,441,475
The movements in the defined benefit asset, present value of defined benefit obligation and fair value of plan assets follow:
Consolidated
2014
Net benefit cost Remeasurements in other comprehensive income
Return on
plan assets Actuarial Actuarial
(excluding changes arising changes arising
amount from from changes Changes in
January 1, PVO Current Net pension Benefits included experience in financial remeasurement Contribution December 31,
2014 transfer service cost Net interest expense* paid in net interest) adjustments assumptions gains by employer 2014
(l) = a + b + e + f
(a) (b) (c) (d) (e) = c + d (f) (g) (h) (i) (j) = g + h + i (k) +j+k
Fair value of plan
assets P4,549,600,610 P438,745,589 P− P250,653,770 P250,653,770 (P249,985,038) (P420,263,385) P− P− (P420,263,385) P110,242,947 P4,678,994,493
Present value
of defined
benefit
obligation 3,092,007,905 585,280,304 327,055,588 154,166,296 481,221,884 (249,985,038) − (32,081,695) 181,653,522 149,571,827 − 4,058,096,882
Net defined
benefit asset P1,457,592,705 (P146,534,715) (P327,055,588) P96,487,474 (P230,568,114) P− (P420,263,385) P32,081,695 (P181,653,522) (P569,835,212) P110,242,947 P620,897,611
*Presented under Compensation and fringe benefits in the statement of income.
Parent
2014
Return on
January 1, PVO Current Net pension Benefits included experience in financial remeasurement Contribution December 31,
2014 transfer service cost Net interest expense* paid in net interest) adjustments assumptions gains by employer 2014
(l) = a + b + e + f
(a) (b) (c) (d) (e) = c + d (f) (g) (h) (i) (j) = g + h + i (k) +j+k
Fair value of plan
assets P4,496,668,630 P− P− P228,232,594 P228,232,594 (P125,301,167) (P397,682,141) P− P− (P397,682,141) P32,687,151 P4,234,605,067
Present value
of defined 3,532,045
benefit
obligation 2,994,227,155 261,913,531 124,241,542 386,155,073 (125,301,167) − (96,142,483) 145,463,769 49,321,286 − 3,307,934,392
Net defined
benefit asset P1,502,441,475 (P3,532,045) (P261,913,531) P103,991,052 (P157,922,479) P− (P397,682,141) P96,142,483 (145,463,769) (P447,003,427) P32,687,151 P926,670,675
Consolidated
2013
Return on
January 1, Current Net pension Benefits included experience in financial remeasurement Contribution December 31,
2013 service cost Net interest expense* paid in net interest) adjustments assumptions gains by employer 2013
(k) = a + d + e
(a) (b) (c) (d) = b + c (e) (f) (g) (h) (i) = f + g + h (j) +i+j
Fair value of plan assets P4,001,777,872 P− P228,605,350 P228,605,350 (P135,133,484) P246,949,468 P− P− P246,949,468 P207,401,404 P4,549,600,610
Present value of defined
benefit obligation 3,125,938,068 305,968,258 150,831,551 456,799,809 (135,133,484) − (50,452,099) (305,144,389) (355,596,488) − 3,092,007,905
Net defined benefit asset P875,839,804 (P305,968,258) P77,773,799 (P228,194,459) P− P246,949,468 P50,452,099 P305,144,389 P602,545,956 P207,401,404 P1,457,592,705
Parent
2013
Return on
January 1, Current Net pension Benefits included experience in financial remeasurement Contribution December 31,
2013 service cost Net interest expense* paid in net interest) adjustments assumptions gains by employer 2013
(k) = a + d + e
(a) (b) (c) (d) = b + c (e) (f) (g) (h) (i) = f + g + h (j) +i+j
Fair value of plan assets P3,956,363,063 P− P225,908,331 P225,908,331 (P135,133,484) P247,129,316 P− P− P 247,129,316 P202,401,404 P4,496,668,630
Present value of defined
benefit obligation 3,025,655,980 283,488,056 144,821,679 428,309,735 (135,133,484) − (27,162,029) (297,443,047) (324,605,076) − 2,994,227,155
Net defined benefit
asset P930,707,083 (P283,488,056) P81,086,652 (P202,401,404) P− P247,129,316 P27,162,029 P297,443,047 P571,734,392 P202,401,404 P1,502,441,475

The Parent Company does not expect to contribute to its defined benefit pension plan in 2015.
In 2014 and 2013, the major categories of plan assets as a percentage of the fair value of total plan assets are as follows:

2014 2013 2014 2013
Parent Company shares 41.12% 41.78% 45.44% 42.27%
Debt instruments 29.33% 28.64% 29.98% 28.29%
Cash and cash equivalents 15.40% 21.43% 9.34% 21.31%
Equity instruments 10.78% 4.89% 11.70% 4.84%
Other assets 3.37% 3.26% 3.54% 3.29%
100.00% 100.00% 100.00% 100.00%
The following table shows the breakdown of fair value of the plan assets:

2014 2013 2014 2013
Due from BSP P580,384,425 P856,773,500 P279,980,200 P856,773,500
Deposits in banks 140,147,653 118,866,676 115,381,342 101,887,968
Financial assets at FVPL 487,015,906 204,229,514 479,894,306 204,229,514
AFS financial assets
Quoted debt securities 735,864,311 739,157,245 694,609,379 711,143,662
Quoted equity securities 17,318,642 18,414,208 15,454,508 13,598,062
Parent Company shares 1,924,115,187 1,902,084,657 1,924,115,187 1,902,084,657
Investments in unit investment trust fund 106,730,418 122,927,004 106,730,418 122,927,004
Corporate bonds 529,571,511 441,979,075 468,266,327 438,820,000
Investment properties* 143,959,600 136,568,000 136,568,000 136,568,000
Other assets 13,345,729 11,057,589 13,101,695 11,093,610
P4,678,994,493 P4,552,630,132 P4,234,605,067 P4,499,698,641
* Investment properties comprise properties located in Manila.
The carrying value of the plan assets of the Group and Parent Company amounted to P4.78 billion and P4.34 billion, respectively, as of
December 31, 2014, and P4.55 billion and P4.50 billion, respectively, as of December 31, 2013.
The principal actuarial assumptions used in 2014 and 2013 in determining the retirement liability for the Group’s and Parent Company’s
retirement plans are shown below:
2014
Parent CBSI CBC-PCCI CIBI PDB
Discount rate:
January 1 5.08% 5.77% 5.76% 5.88% 4.83%
December 31 4.54% 4.66% 4.56% 4.49% 4.60%
Salary increase rate 6.00% 6.00% 6.00% 6.00% 4.00%
2013
Parent CBSI CBC-PCCI CIBI
Discount rate:
January 1 5.71% 6.11% 5.94% 5.92%
December 31 5.08% 5.77% 5.76% 5.88%
Salary increase rate 6.00% 6.00% 6.00% 6.00%
The sensitivity analysis below has been determined based on the impact of reasonably possible changes of each significant assumption on
the defined benefit liability as of the end of the reporting period, assuming all other assumptions were held constant:
December 31, 2014 Parent CBSI CBC-PCCI CIBI PDB

Discount rate
(+1%) (P261,371,135) (P12,832,108) (P8,402,571) (P1,759,767) (P55,339,931)
(-1%) 306,542,457 16,118,081 10,432,441 2,190,416 64,628,602
Salary increase rate

(+1%) 284,376,013 15,302,022 9,817,863 2,086,466 132,209,473*
(-1%) (248,372,800) (12,496,014) (8,096,659) (1,718,971) (101,134,074)*
*Salary increase rate (+/-2%)
December 31, 2013 Parent CBSI CBC-PCCI CIBI

Discount rate
(+1%) (P235,683,452) (P2,285,262) (P6,168,476) (P767,206)
(-1%) 276,137,776 8,622,146 7,590,054 965,468
Salary increase rate

(+1%) 257,517,466 8,392,825 7,189,382 930,943
(-1%) (224,938,940) (2,210,724) (5,959,120) (756,844)
24. DERIVATIVE FINANCIAL INSTRUMENTS
Occasionally, the Parent Company enters into forward exchange contracts as an accommodation to its clients. These derivatives are
not designated as accounting hedges. The aggregate notional amounts of the outstanding buy US dollar currency forwards as of
December 31, 2014 and 2013 amounted to US$453.42 million and US$478.66 million, respectively, while the sell US dollar forward
contracts amounted to US$585.71 million and US$816.38 million, respectively. Weighted average buy US dollar forward rates as of
December 31, 2014 and 2013 are P44.60 and P43.41, respectively, while the weighted average sell US dollar forward rates are P44.95 and
P44.24, respectively.
The aggregate notional amounts of the outstanding sell Japanese yen (JPY) currency forwards as of December 31, 2014 amounted to
JPY241.02 million. Weighted average sell JPY forward rates as of December 31, 2014 is P0.37.
The aggregate notional amounts of the outstanding IRS as of December 31, 2014 and 2013 amounted to P4.70 billion and P3.80 billion,
respectively.
As of December 31, 2014 and 2013, the fair values of derivatives follow:
2014 2013
Derivative Derivative Derivative Derivative
Asset Liability Asset Liability
Currency forwards P268,454,566 P67,793,695 P475,864,396 P119,315,938
IRS 12,369,127 33,816,246 10,979,876 35,492,428
Warrants 8,733,369 – 8,669,900 –
P289,557,062 P101,609,941 P495,514,172 P154,808,366
Fair Value Changes of Derivatives

The net movements in fair value changes of derivative instruments are as follows:
2014 2013
Balance at beginning of year P340,705,806 (P318,235,939)
Fair value changes during the year 51,292,115 877,329,828
Settled transactions (204,050,800) (218,388,083)
Balance at end of year P187,947,121 P340,705,806
The net movements in the value of the derivatives are presented in the statements of income under the following accounts:
2014 2013 2012

Foreign exchange gain (loss) (P155,824,118) P740,293,749 (P356,349,338)
Trading and securities gains (loss)* (Note 20) 3,065,433 (81,352,004) (33,294,321)
(P152,758,685) P658,941,745 (P389,643,659)
*Net movements in the value related to embedded credit derivatives and IRS.
25. LEASE CONTRACTS
The lease contracts are for periods ranging from one to 25 years from the dates of contracts and are renewable under certain terms and
conditions. Various lease contracts include escalation clauses, most of which bear an annual rent increase of 5.00% to 10.00%.
Annual rentals on these lease contracts included in ‘Occupancy cost’ in the statements of income in 2014, 2013 and 2012 amounted to
P522.00 million, P296.00 million and P212.69 million, respectively, for the Group, and P349.00 million, P229.00 million and P181.00 million,
respectively, for the Parent Company.
Future minimum rentals payable of the Group and the Parent Company under non-cancelable operating leases follow:

2014 2013 2014 2013
Within one year P530,257,653 P325,934,096 P373,762,845 P244,684,361
After one year but not more than five years 1,460,492,459 976,665,074 1,060,263,777 684,530,837
After five years 497,143,790 312,086,414 407,164,120 225,696,367
P2,487,893,902 P1,614,685,584 P1,841,190,742 P1,154,911,565
The Group and the Parent Company have also entered into commercial property leases on its investment properties (Note 12). These
noncancellable leases have remaining noncancellable lease terms of between one and five years for the Group and the Parent Company.
Future minimum rentals receivable under noncancellable operating leases follow:

2014 2013 2014 2013
Within one year P8,360,485 P22,663,954 P2,985,835 P2,523,860
After one year but not more than five years 81,044,519 41,767,673 7,200,000 −
P89,405,004 P64,431,627 P10,185,835 P2,523,860
26. INCOME AND OTHER TAXES
Income taxes include corporate income tax and FCDU final taxes, as discussed below, and final tax paid at the rate of 20.00% on gross
interest income from government securities and other deposit substitutes. These income taxes, as well as the deferred tax benefits and
provisions, are presented as ‘Provision for income tax’ in the statements of income.
Republic Act (RA) No. 9337, An Act Amending National Internal Revenue Code, provides that RCIT rate shall be 30.00% while interest
expense allowed as a deductible expense is reduced to 33.00% of interest income subject to final tax.
An MCIT of 2.00% on modified gross income is computed and compared with the RCIT. Any excess MCIT over RCIT is deferred and can
be used as a tax credit against future income tax liability for the next three years. In addition, the NOLCO is allowed as a deduction from
taxable income in the next three years from the year of inception.
Effective in May 2004, RA No. 9294 restored the tax exemption of FCDUs and offshore banking units (OBUs). Under such law, the income
derived by the FCDU from foreign currency transactions with nonresidents, OBUs, local commercial banks including branches of foreign
banks is tax-exempt while interest income on foreign currency loans from residents other than OBUs or other depository banks under the
expanded system is subject to 10.00% gross income tax.
Interest income on deposit placements with other FCDUs and OBUs is taxed at 7.50%, while all other income of the FCDU is subject to
the 30.00% corporate tax.
On March 15, 2011, the BIR issued Revenue Regulation (RR) No. 4-2011 which prescribes the attribution and allocation of expenses
between FCDUs/EFCDUs or OBU and RBU and within RBU. Pursuant to the regulations, the Parent Company made an allocation of its
expenses in calculating income taxes due for RBU and FCDU.
Current tax regulations also provide for the ceiling on the amount of entertainment, amusement and recreation (EAR) expense that can
be claimed as a deduction against taxable income. Under the regulations, EAR expense allowed as a deductible expense is limited to the
actual EAR paid or incurred but not to exceed 1.00% of the Parent Company’s net revenue.
The provision for income tax consists of:

2014 2013 2012 2014 2013 2012
Current:
Final tax P575,433,837 P474,708,084 P397,890,351 P472,387,187 P474,690,027 P370,560,842
RCIT 888,187,884 367,639,848 94,057,428 871,033,470 345,598,892 100,531,347
MCIT 34,693,360 – 9,293,831 – – 8,580,008
1,498,315,081 842,347,932 501,241,610 1,343,420,657 820,288,919 479,672,197
Deferred 66,612,192 (167,811,495) (78,952,994) 65,411,675 (170,360,659) (67,115,057)
P1,564,927,273 P674,536,437 P422,288,616 P1,408,832,332 649,928,260 P412,557,140
The details of net deferred tax assets (liabilities) follow:

2014 2013 2014 2013
Deferred tax assets (liabilities) on:
Allowance for impairment and credit losses P1,667,491,669 P1,777,532,312 P1,641,349,304 P1,751,407,360
Revaluation increment on land (547,404,615) (547,404,615) (547,404,615) (547,404,615)
Remeasurement gain on defined benefit asset or liability (91,171,331) (255,154,157) (121,603,129) (255,704,157)
Fair value adjustment on asset foreclosures and dacion
transactions - net of depreciated portion (142,380,584) (144,695,215) (102,636,766) (102,636,766)
Fair value adjustments on net assets of PDB and Unity
Bank (894,147,971) (133,326,974) – –
Unrealized gain on FVPL and AFS (100,783,603) (101,140,186) (100,783,603) (100,783,603)
Accrued rent 24,827,074 22,733,929 30,002,312 18,274,374
Unamortized past service cost 877,246 1,001,930 230,879 309,361
Others (31,177,486) 8,248,874 43,212,218 –
(P113,869,601) P627,795,898 P842,366,600 P763,461,954
The Group did not set up deferred tax assets on the following temporary differences as it believes that it is highly probable that these
temporary differences will not be realized in the near foreseeable future:

2014 2013 2014 2013
Allowance for impairment and credit losses P3,346,291,862 P3,052,153,063 P2,694,673,446 P2,758,854,529
NOLCO 1,979,435,594 170,663,471 − −
Accrued compensated absences 282,863,149 75,453,795 64,854,777 75,453,795
Excess of MCIT over RCIT 102,549,460 13,435,356 − −
Others 38,657,555 − − −
P5,749,797,620 P3,311,705,685 P2,759,528,223 P2,834,308,324
As of December 31, 2014, details of the Group’s NOLCO are as follows:
Original Used Remaining Expiry

Inception Year Amount Amount Expired Amount Balance Year
2011 P46,665,851 P18,744,851 P27,921,000 P− 2014
2012 1,635,734,907 71,823,347 − 1,563,911,560 2015
2013 238,439,000 − − 238,439,000 2016
2014 177,085,034 − − 177,085,034 2017
P2,097,924,792 P90,568,198 P27,921,000 P1,979,435,594
As of December 31, 2014, details of the excess of MCIT over RCIT of the Group follow:
Original Used Expired Amount Remaining Expiry

Inception Year Amount Amount Balance Year
2011 P42,227,296 P11,039,894 P31,187,402 P− 2014
2012 27,764,894 − − 27,764,894 2015
2013 37,783,160 − − 37,783,160 2016
2014 37,001,406 − − 37,001,406 2017
P144,776,756 P11,039,894 P31,187,402 P102,549,460
The reconciliation of the statutory income tax to the provision for income tax follows:

2014 2013 2012 2014 2013 2012
Statutory income tax P2,003,542,947 P1,732,495,181 P1,627,589,495 P1,957,021,375 P1,750,324,274 P1,664,851,068
Tax effects of:
FCDU income (524,178,037) (407,003,965) (833,055,070) (479,306,577) (407,253,711) (832,008,105)
Interest income subjected
to final tax (453,823,765) (246,573,693) (201,204,070) (230,808,885) (234,210,635) (188,738,968)
Non-taxable income (618,351,544) (730,180,246) (556,142,627) (349,136,795) (715,563,632) (553,638,681)
Nondeductible expenses 1,235,066,337 596,864,488 464,122,693 532,835,041 501,389,235 446,220,023
Others (77,328,665) (271,065,328) (79,021,805) (21,771,827) (244,757,271) (124,128,197)
Provision for income tax P1,564,927,273 P674,536,437 P422,288,616 P1,408,832,332 P649,928,260 P412,557,140
27. TRUST OPERATIONS
Securities and other properties (other than deposits) held by the Parent Company in fiduciary or agency capacities for clients and
beneficiaries are not included in the accompanying balance sheets since these are not assets of the Parent Company (Note 29).
In compliance with the requirements of current banking regulations relative to the Parent Company’s trust functions: (a) government
securities included under AFS financial assets in the balance sheets with a total face value of P1.22 billion and P1.12 billion as of
December 31, 2014 and 2013, respectively, are deposited with the BSP as security for the Parent Company’s faithful compliance with its
fiduciary obligations (Note 8); and (b) a certain percentage of the Parent Company’s trust fee income is transferred to surplus reserve. This
yearly transfer is required until the surplus reserve for trust function equals 20.00% of the Parent Company’s authorized capital stock.
28. RELATED PARTY TRANSACTIONS
Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence
over the other party in making financial and operating decisions. The Group’s related parties include:
• key management personnel, close family members of key management personnel and entities which are controlled, significantly
influenced by or for which significant voting power is held by key management personnel or their close family members,
• significant investors
• subsidiaries, joint ventures and associates and their respective subsidiaries, and
• post-employment benefit plans for the benefit of the Group’s employees.
The Group has several business relationships with related parties. Transactions with such parties are made in the ordinary course of
business and on substantially same terms, including interest and collateral, as those prevailing at the time for comparable transactions with
other parties. These transactions also did not involve more than the normal risk of collectability or present other unfavorable conditions.
Transactions with retirement plans

Under PFRS, certain post-employment benefit plans are considered as related parties. The Group has business relationships with a
number of its retirement plans pursuant to which it provides trust and management services to these plans. Income earned by the
Group and Parent Company from such services amounted to P46.91 million and P44.05 million, respectively, in 2014, P42.67 million and
P42.39 million, respectively, in 2013, and P36.11 million and P35.87 million, respectively, in 2012. The Group’s retirement funds may hold
or trade the Parent Company’s shares or securities. Significant transactions of the retirement fund, particularly with related parties, are
approved by the Trust Investment Committee (TIC) of the Parent Company. The members of the TIC are directors and key management
personnel of the Parent Company.
A summary of transactions with related party retirement plans follows:

2014 2013 2014 2013
Deposits in banks P415,584,783 P118,866,676 P103,511,308 P101,887,968
Equity investment 1,978,052,178 1,902,084,657 1,924,115,187 1,902,084,657
Dividend income 37,906,130 35,169,516 37,906,130 35,169,516
Interest income 733,836 5,014,496 663,880 4,787,801
Number of shares held 40,938,621 32,238,723
Total market value 1,924,115,187 1,902,084,657
In 2012, dividend income and interest income of the retirement plan from investments and placements in the Parent Company amounted to
P31.97 million and P12.42 million, respectively, for the Group, and P31.97 million and P12.18 million, respectively, for the Parent Company.
Voting rights over the Parent Company’s shares are exercised by an authorized trust officer.
Remunerations of Directors and other Key Management Personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the
Group, directly or indirectly. The Group considers the members of the ManCom to constitute key management personnel for purposes of
PAS 24.
Total remunerations of key management personnel are as follows:

2014 2013 2012 2014 2013 2012
Short-term employee benefits P400,317,968 P344,566,502 P338,425,670 P313,468,594 P311,417,108 P313,589,717
Post-employment benefits 7,645,895 3,736,499 2,572,668 3,644,885 2,499,378 1,410,741
P407,963,863 P348,303,001 P340,998,338 P317,113,479 P313,916,486 P315,000,458
Members of the BOD are entitled to a per diem of P500.00 for attendance at each meeting of the Board or of any committees and to four
percent of the Parent Company’s net earnings, with certain deductions in accordance with BSP regulation. Non-executive directors do
not receive any performance-related compensation. Directors’ remuneration covers all China Bank Board activities and membership of
committees and subsidiary companies.
The Group also provides banking services to directors and other key management personnel and persons connected to them. These
transactions are presented in the tables below.
Other related party transactions

Transactions between the Parent Company and its subsidiaries meet the definition of related party transactions. Transactions between the
Group and its associated companies also qualify as related party transactions. Details of the Parent Company’s subsidiaries and associate
are disclosed in Notes 1 and 10.
Group
Related party transactions of the Group by category of related party are presented below.
December 31, 2014

Category Amount / Volume Outstanding Balance Terms and Conditions
Significant Investor
Loans P3,000,000,000 Includes secured loan with interest rate
Issuances P3,000,000,000 of 5.13% and maturity of five years. Collateral
Repayments (2,400,000,000) includes shares of stocks with
fair value of P22.11 billion.
Deposit liabilities 4,582,947,414 These are checking account with annual
Deposits 4,582,888,247 average interest rate of 0.13%.
Withdrawals (1,144)
Associates
Loans 14,310,526 Contract-to-sell loans with annual
Issuances – interest rate from 15.00% to 21.00%.
Repayments 481,871,836
Deposit liabilities 980,699,001 These are savings account with annual average
Deposits 16,760,465,200 interest rates ranging from
Withdrawals (15,931,839,040) 0.25% to 1.00%.
Key Management Personnel
Loans 21,678,483 These are credit card transactions and
Issuances 9,091,143 secured loans with interest rate ranging
Repayments (30,163,393) from 5.50% to 8.00% and maturity
of 15 years.
Deposit liabilities 36,702,404 These are checking, savings and time deposit
Deposits 281,249,887 account with annual average interest rates
Withdrawals (362,831,247) ranging from 0.25% to 1.00%.
Other Related Parties
Loans –
Issuances –
Repayments (750,000,000)
Deposit liabilities 29,660,687,571 These are checking and savings account
Deposits 37,294,856,109 with annual average interest rates ranging from
Withdrawals (7,791,868,854) 0.13% to 1.00%.
December 31, 2013

Significant Investor
Loans P2,400,000,000 Include secured loans with interest rate of
Issuances P2,400,000,000 2.85% and maturity of two months. Collateral
Repayments (4,883,400,000) includes shares of stocks with fair value of
P22.15 billion.
Deposit liabilities 60,311 These are checking account with annual
Deposits 4,174,084,667 average interest rate of 0.13%.
Withdrawals (4,182,512,264)
Associate
Deposits 7,591,722,279 interest rates ranging from
Withdrawals (7,563,467,767) 0.25% to 1.00%.
December 31, 2013

Loans 4,351,616 Include secured and unsecured loans with
Issuances 2,747,722 interest rate ranging from 6.00% to 8.00% and
Repayments (731,125) maturity of 15 years. Collaterals include real
estate properties amounting to P8.03 million.
Deposits 447,292,410 interest rates ranging from
Withdrawals (375,764,486) 0.25% to 1.00%.
Loans –
Issuances –
Repayments (4,991,550,000)
Deposit liabilities 155,743,571 These are checking and savings account
Deposits 20,719,935,219 with annual average interest rates ranging from
Withdrawals (20,617,613,708) 0.13% to 1.00%.
Interest income earned and interest expense incurred from the above loans and deposit liabilities in 2014, 2013, and 2012 follow:
Significant Investor Associate

2014 2013 2012 2014 2013 2012
Interest income P146,695,250 P20,556,375 P163,301,442 P14,340,928 P– P–
Interest expense 1,078 3,792 13,271 1,331,659 172,030 153,315
Key Management Personnel Other Related Parties

2014 2013 2012 2014 2013 2012
Interest income P1,132,663 P316,051 P244,003 P42,660,000 P– P154,511,645
Interest expense 466,193 107,162 – 198,723 120,457 85,887
Related party transactions of the Group with significant investor, associate and other related parties pertain to transactions of the Parent
Company with these related parties.
Parent Company
Related party transactions of the Parent Company by category of related party, except those already presented in the Group disclosures,
are presented below.
December 31, 2014

Category Amount / Volume Outstanding Balance Nature, Terms and Conditions
Subsidiaries
Deposit liabilities P6,523,495,689 These are checking and savings account
Deposits P9,082,346,986 with annual average interest rates ranging
Withdrawals (3,005,425,900) from 0.13% to 1.00%.
Associate
Deposit liabilities 4,582,947,414 These are credit card transactions and secured
Deposits 4,582,888,247 and unsecured loans with interest rate at 6.00%
Withdrawals (1,144) and maturity in 2021.
Loans 2,155,434 Loans with interest rate ranging from 6.00% to
Issuances 551,540 8.00% and maturity of 15 years.
Deposits 263,274,431 interest rates ranging from 0.25% to 1.00%.
Withdrawals (326,664,852)
Loans –
Issuances –
Deposit liabilities 29,625,479,615 These are checking and savings account
Deposits 37,261,604,898 with annual average interest rates ranging
December 31, 2013

Category Amount / Volume Outstanding Balance Nature, Terms and Conditions
Subsidiaries
Deposit liabilities P446,574,603 These are checking and savings account
Deposits P11,080,784,886 with annual average interest rates ranging
Loans 4,351,616 Loans with interest rate ranging from 6.00% to
Issuances 2,747,722 8.00% and maturity of 15 years.
Repayments (731,125)
Deposit liabilities 76,890,073 These are savings account with
Deposits 447,371,207 annual average interest rates ranging
Withdrawals (375,764,486) from 0.25% to 1.00%.
As of December 31, 2014 and 2013, CBSI has an outstanding letters of credit (LC) line with the Parent Company amounting to
US$10.0 million to accommodate the LC requirement of its clients (Note 29).
The related party transactions shall be settled in cash. There are no provisions for credit losses in 2014, 2013 and 2012 in relation to
amounts due from related parties.
Interest income earned and interest expense incurred from the above loans and deposit liabilities in 2014, 2013 and 2012 follow:
Subsidiaries Associate
2014 2013 2012 2014 2013 2012
Interest income P– P– P– P– P– P–
Interest expense 202,539 223,584 123,415 1,081,036 – –
Key Management Personnel Other Related Parties

2014 2013 2012 2014 2013 2012
Interest income P97,900 P 316,051 P 186,801 P42,660,000 P– P–
Interest expense 54,706 107,162 9,178 105,811 – –
Outstanding loan balances with related parties are unimpaired as at year-end, thus no impairment allowance was recorded.
Outright purchases and outright sale of debt securities of the Parent Company with its subsidiaries in 2014 and 2013 follow:
Subsidiaries
2014 2013
Peso-denominated: P637,890,000 P2,000,000,000
Outright purchase 558,567,000 2,435,000,000
Outright sale
Dollar-denominated:
Outright purchase US$1,800,000 US$1,400,000
Outright sale 1,400,000 –
The following table shows the amount and outstanding balance of other related party transactions included in the financial statements:
Subsidiaries
2014 2013 Nature, Terms and Conditions
Balance Sheet
Accounts Receivable P1,723,775 P338,959 This pertains to various expenses advanced by CBC
in behalf of CBSI.
Security Deposits 2,192,538 1,936,657 This pertains to the rental deposits with CBSI for
office space leased out to the Parent Company.
Accounts Payable 6,682,669 1,472,358 This pertains to various unpaid rental to CBSI.
Subsidiaries
2014 2013 2012 Nature, Terms and Conditions
Income Statement
Miscellaneous income P1,800,000 P1,800,000 P1,800,000 Human resources functions provided by
the Parent Company to its subsidiaries
(except CBC Forex and Unity Bank) such
as recruitment and placement, training
and development, salary and benefits
development, systems and research,
and employee benefits. Under the MOA
between the Parent Company and its
subsidiaries, the subsidiaries shall pay the
Parent Company an annual fee.
Occupancy cost 16,410,516 18,239,705 16,558,947 Certain units of the condominium owned
by CBSI are being leased to the Parent
Company for a term of five years, with no
escalation clause.
Miscellaneous expense 103,363,906 93,347,801 77,507,889 This pertains to the computer and general
banking services provided by CBC-PCCI to
the Parent Company to support its reporting
requirements.
Regulatory Reporting
As required by BSP, the Group discloses loan transactions with investees and with certain DOSRI. Existing banking regulations limit the
amount of individual loans to DOSRI, 70.00% of which must be secured, to the total of their respective deposits and book value of their
respective investments in the lending company within the Group. In the aggregate, loans to DOSRI generally should not exceed total equity
or 15.00% of total loan portfolio, whichever is lower.
BSP Circular No. 423 dated March 15, 2004 amended the definition of DOSRI accounts. The following table shows information relating to
the loans, other credit accommodations and guarantees classified as DOSRI accounts under regulations existing prior to said Circular, and
new DOSRI loans, other credit accommodations granted under said Circular:

2014 2013 2014 2013
Total outstanding DOSRI loans P6,202,177,532 P6,899,699,448 P6,136,699,825 P6,890,582,635
Percent of DOSRI loans granted under regulations
existing prior to BSP Circular No. 423 − − − −
Percent of DOSRI loans granted under
BSP Circular No. 423 − − − −
Percent of DOSRI loans to total loans 2.09% 3.08% 2.45% 3.21%
Percent of unsecured DOSRI loans to total DOSRI loans 5.65% 7.55% 5.69% 7.55%
The amounts of loans disclosed for related parties above differ with the amounts disclosed for key management personnel since the
composition of DOSRI is more expansive than that of key management personnel.
BSP Circular No. 560 provides that the total outstanding loans, other credit accommodation and guarantees to each of the bank’s/quasi-
bank’s subsidiaries and affiliates shall not exceed 10.00% of the net worth of the lending bank/quasi-bank, provided that the unsecured
portion of which shall not exceed 5.00% of such net worth. Further, the total outstanding loans, credit accommodations and guarantees to
all subsidiaries and affiliates shall not exceed 20.00% of the net worth of the lending bank/ quasi-bank; and the subsidiaries and affiliates of
the lending bank/quasi-bank are not related interest of any director, officer and/or stockholder of the lending institution, except where such
director, officer or stockholder sits in the BOD or is appointed officer of such corporation as representative of the bank/quasi-bank. As of
December 31, 2014 and 2013, the Parent Company is in compliance with these requirements.
On May 12, 2009, BSP issued Circular No. 654 allowing a separate individual limit of twentyfive (25.00%) of the net worth of the
lending bank/quasi-bank to loans of banks/quasi-banks to their subsidiaries and affiliates engaged in energy and power generation. As
of December 31, 2014 and 2013, the Parent Company is in compliance with these requirements.
29. COMMITMENTS AND CONTINGENT ASSETS AND LIABILITIES
In the normal course of the Group’s operations, there are various outstanding commitments and contingent liabilities which are not
reflected in the accompanying financial statements. Management does not anticipate any material losses as a result of these transactions.
The following is a summary of contingencies and commitments of the Group and the Parent Company with the equivalent peso contractual
amounts:

2014 2013 2014 2013
Trust department accounts (Note 27) P71,201,164,035 P67,447,457,904 P65,826,813,367 P63,479,015,562
Future exchange sold 26,415,835,382 36,116,560,158 26,415,835,382 36,116,560,158
Future exchange bought 20,223,682,405 20,778,554,007 20,223,682,405 20,778,554,007
Unused commercial letters of credit (Note 28) 19,500,527,619 17,574,202,929 19,185,363,619 17,573,829,122
IRS receivable 4,700,000,000 3,800,000,000 4,700,000,000 3,800,000,000
Spot exchange bought 1,207,450,000 1,770,013,561 1,207,450,000 1,770,013,561
Spot exchange sold 939,405,000 1,081,746,061 939,405,000 1,081,746,061
Outstanding guarantees issued 930,028,442 327,707,419 929,378,442 327,707,419
Late deposits/payments received 713,738,225 506,175,794 655,130,042 502,489,719
Deficiency claims receivable 297,072,923 297,072,923 297,072,923 297,072,923
Outward bills for collection 246,691,871 220,930,542 245,055,351 219,305,915
Inward bills for collection 242,966,245 231,328,492 242,966,245 231,328,492
Others 5,928,247,783 2,684,834,278 2,657,244,208 2,684,780,321
30. SEGMENT INFORMATION
The Group’s operating businesses are recognized and managed separately according to the nature of services provided and the markets
served, with each segment representing a strategic business unit. In 2014, the Group’s organization structure was realigned in a manner
that caused the composition of its reportable segments to change. From four major groups (Consumer Banking, Institutional Banking,
Branch Banking and Treasury), the Bank now has three major business segments, namely:
The Group’s business segments are as follows:
a. Lending Business – principally handles all the lending, trade finance and corollary banking products and services offered to corporate
and institutional customers as well as selected middle market clients. It also handles home loans, contract-to-sell receivables and
auto loans for individual and corporate customers. Aside from the lending business, it also provides cash management services and
remittance transactions;
b. Retail Banking Business – principally handles retail and commercial loans, individual and corporate deposits, overdrafts and funds
transfer facilities, trade facilities and all other services for retail customers;
c. Financial Capital Markets and Investments – principally provides money market, trading and treasury services, manages the Bank’s
funding operations by the use of government securities, placements and acceptances with other banks as well as offers advisory and
capital-raising services to corporate clients and wealth management services to high-net-worth customers; and
d. Others – handles other services including but not limited to trust and investment management services, asset management, insurance
brokerage, credit management, thrift banking business, operations and financial control, and other support services.
The Group’s businesses are organized to cater to the banking needs of market segments, facilitate customer engagement, ensure timely
delivery of products and services as well as achieve cost efficiency and economies of scale. Accordingly, the corresponding segment
information for all periods presented herein are restated to reflect such change.
The Group reports its primary segment information to the Chief Operating Decision Maker (CODM) on the basis of the above-mentioned
segments. The CODM of the Group is the Chief Operating Officer.
Segment assets are those operating assets that are employed by a segment in its operating activities that are either directly attributable to
the segment or can be allocated to the segment on a reasonable basis.
Segment liabilities are those operating liabilities that result from the operating activities of a segment and that either are directly attributable
to the segment or can be allocated to the segment on a reasonable basis.
Interest income is reported net as management primarily relies on the net interest income as performance measure, not the gross income
and expense.
The segment results include internal transfer pricing adjustments across business units as deemed appropriate by management.
Transactions between segments are conducted at estimated market rates on an arm’s length basis. Interest is charged/credited to the
business units based on a pool rate which approximates the marginal cost of funds.
Other operating income mainly consists of trading and securities gain (loss) - net, service charges, fees and commissions, trust fee income
and foreign exchange gain - net. Other operating expense mainly consists of compensation and fringe benefits, provision for impairment
and credit losses, taxes and licenses, occupancy, depreciation and amortization, stationery, supplies and postage and insurance. Other
operating income and expense are allocated between segments based on equitable sharing arrangements.
The Group has no significant customers which contributes 10.00% or more of the consolidated revenues.
The Group’s asset producing revenues are located in the Philippines (i.e., one geographical location); therefore, geographical segment
information is no longer presented.
The following tables present relevant financial information (in thousands) regarding business segments measured in accordance with PFRS
as of and for the years ended December 31, 2014, 2013 and 2012 (with corresponding items of segment information for earlier periods
restated to reflect the new composition of reportable segments):
Lending Business Retail Banking Business

2014 2013 2012 2014 2013 2012
Results of Operations
Net interest income
Third party P8,972,673 P7,451,694 P7,069,258 (P187,269) (P544,700) (P1,083,972)
Intersegment (3,102,914) (3,233,697) (4,764,566) 4,564,274 4,150,825 5,329,492
5,869,759 4,217,997 2,304,692 4,377,005 3,606,125 4,245,520
Other operating income 633,077 657,680 373,632 1,296,578 1,186,744 1,150,101
Total revenue 6,502,836 4,875,677 2,678,324 5,673,583 4,792,869 5,395,621
Other operating expense (1,172,810) (1,078,260) (969,300) (5,109,623) (4,770,170) (4,374,814)
Income before income tax 5,330,026 3,797,417 1,709,024 563,960 22,699 1,020,807
Provision for income tax (3,612) − – (6,550) (4,650) –
Net income P5,326,414 P3,797,417 P1,709,024 P557,410 P18,049 P1,020,807
Total assets P196,097,393 P168,272,868 P146,139,273 P239,928,734 P229,840,578 P164,497,356
Total liabilities P775,648 P896,570 P1,990,649 P296,507,001 P276,074,955 P211,473,913
Depreciation and amortization P21,879 P12,160 P11,554 P309,589 P345,769 P343,375
losses P377,664 P412,468 P308,749 P264,341 P173,267 P129,011
Capital expenditures P9,341 P11,740 P7,786 P92,164 P87,630 P218,253
Financial Capital Markets and Investments Other Business and Support Units
2014 2013 2012 2014 2013 2012
Net interest income
Third party P2,599,321 P2,273,313 P1,627,403 P2,704,022 P755,684 P449,652
Intersegment (541,263) (665,313) (53,922) (920,097) (251,815) (511,004)
2,058,058 1,608,000 1,573,481 1,783,925 503,869 (61,352)
Other operating income 1,413,239 2,240,750 3,243,551 1,416,382 1,075,417 1,026,330
Total revenue 3,471,297 3,848,750 4,817,032 3,200,307 1,579,286 964,978
Other operating expense (601,704) (694,222) (705,479) (5,285,410) (2,778,946) (2,381,064)
Income before income tax 2,869,593 3,154,528 4,111,553 (2,085,103) (1,199,660) (1,416,086)
Provision for income tax (451,402) (445,260) (352,701) (1,103,363) (224,626) (69,587)
Net income P2,418,191 P2,709,268 P3,758,852 (P3,188,466) (P1,424,286) (P1,485,673)
Total assets P69,282,581 P101,335,787 P69,288,795 (P34,368,711) (P85,751,310) (P55,765,377)
Total liabilities P43,584,546 P64,108,438 P46,388,275 P73,506,753 P27,218,261 P21,569,005
Depreciation and amortization P13,950 P8,612 P10,569 P577,782 P386,345 P459,798
Provision for impairment and
credit losses P– P– P– (P201,104) (P171,399) (P201,004)
Capital expenditures P66,145 P5,922 P12,812 P896,254 P1,059,949 P433,400
Total
2014 2013 2012
Net interest income
Third party P14,088,747 P9,935,991 P8,062,341
Intersegment − − –
14,088,747 9,935,991 8,062,341
Other operating income 4,759,276 5,160,591 5,793,614
Total revenue 18,848,023 15,096,582 13,855,955
Other operating expense (12,169,547) (9,321,598) (8,430,657)
Income before income tax 6,678,476 5,774,984 5,425,298
Provision for income tax (1,564,927) (674,536) (422,288)
Net income P5,113,549 P5,100,448 P5,003,010
Total assets P470,939,997 P413,697,923 P324,160,047
Total liabilities P414,373,948 P368,298,224 P281,421,842
Depreciation and amortization P923,200 P752,886 P825,296
losses P440,901 P414,336 P236,756
Capital expenditures P1,063,904 P1,165,241 P672,251
31. EARNINGS PER SHARE
Basic EPS amounts are calculated by dividing the net income for the year by the weighted average number of common shares outstanding
during the year (adjusted for stock dividends).
The following reflects the income and share data used in the basic earnings per share computations:
2014 2013 2012

a. Net income attributable to equity holders of the
parent P5,116,396,788 P5,103,258,492 P5,018,197,140
b. Weighted average number of common shares
outstanding* (Note 22) 1,662,092,229 1,560,291,780 1,560,291,780
c. EPS (a/b) P3.08 P3.27 P3.22
*Weighted average number of outstanding common shares in 2013 and 2012 was recomputed after giving retroactive effect to stock rights and stock
dividends distributed in 2014 (Note 22).
As of December 31, 2014, 2013 and 2012, there were no outstanding dilutive potential common shares. Before consideration of the stock
rights and 8.00% stock dividends distributed in 2014, the EPS for 2013 and 2012 were 3.57 and 3.51, respectively.
32. FINANCIAL PERFORMANCE
The following basic ratios measure the financial performance of the Group and the Parent Company:

2014 2013 2012 2014 2013 2012
Return on average equity 9.90% 11.31% 12.22% 9.90% 11.53% 12.54%
Return on average assets 1.12% 1.45% 1.71% 1.30% 1.53% 1.79%
Net interest margin 3.30% 2.98% 2.90% 3.20% 2.94% 2.91%
33. NON-CASH INVESTING ACTIVITIES
The following is a summary of certain non-cash investing activities that relate to the analysis of the statements of cash flows:
Consolidated
2014 2013 2012
Addition to investment properties from settlement of loans P1,543,024,040 P504,757,989 P204,077,996
Fair value gain in AFS financial assets 202,452,332 (1,441,364,235) (432,619,037)
Addition to equity investment 145,027,616 − −
Cumulative translation adjustment (86,686,308) 131,858,279 (90,847,759)
Addition to non-current assets held for sale from settlement of loan 84,486,024 16,013,040 18,704,256
Addition to chattel mortgage from settlement of loans 22,943,379 16,391,313 12,437,314
Parent Company
2014 2013 2012
Addition to investment properties from settlement of loans P498,254,955 P419,628,959 P122,668,392
Fair value gain in AFS financial assets 188,354,408 (1,418,820,683) (423,504,964)
Addition to equity investment 145,027,616 − −
Cumulative translation adjustment (87,714,557) 131,858,279 (90,847,759)
Addition to chattel mortgage from settlement of loans 7,817,379 9,809,868 12,437,314
34. OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES
The amendments to PFRS 7 require the Group to disclose information about rights of offset and related arrangements (such as collateral
posting requirements) for financial instruments under an enforceable master netting agreements or similar arrangements. The effects of
these arrangements are disclosed in the succeeding table.
December 31, 2014

Effects of remaining rights of
set-off (including rights to set
Net amount off financial collateral) that
Gross amounts presented in do not meet PAS 32 offsetting
Financial instruments offset in statements of criteria
recognized at Gross carrying accordance with financial Fair value of
end of reporting amounts (before the offsetting position Financial financial Net exposure
period by type offsetting) criteria [a-b] instruments collateral [c-d]
[a] [b] [c] [d] [e]
Financial assets
Currency forwards P120,866,010 P− P120,866,010 P12,974,203 P− P107,891,807
IRS 12,369,127 − 12,369,127 9,689,323 − 2,679,804
P133,235,137 P− P133,235,137 P22,663,526 P− P110,571,611
Bills payable P4,271,039,515 P− P4,271,039,515 P5,328,707,748 P338,096,552 P−
Currency forwards 12,974,203 − 12,974,203 12,974,203 − −
IRS 33,816,246 − 33,816,246 9,689,323 4,975,922 19,151,001
P4,317,829,964 P− P4,317,829,964 P5,351,371,274 P343,072,474 P19,151,001
December 31, 2013

Effects of remaining rights of
set-off (including rights to set
Net amount off financial collateral) that
Gross amounts presented in do not meet PAS 32 offsetting
Financial instruments offset in statements of criteria
recognized at Gross carrying accordance with financial Fair value of
end of reporting amounts (before the offsetting position Financial financial Net exposure
period by type offsetting) criteria [a-b] instruments collateral [c-d]
[a] [b] [c] [d] [e]
Financial assets
Currency forwards P91,810,464 P− P91,810,464 P33,859,983 P− P57,950,481
IRS 10,979,876 − 10,979,876 6,871,366 − 4,108,510
P102,790,340 P− P102,790,340 P40,731,349 P− P62,058,991
Bills payable P8,240,891,256 P− P8,240,891,256 P10,740,888,564 P114,332,529 P−
Currency forwards 63,348,024 − 63,348,024 33,859,983 − 29,488,041
IRS 35,492,428 − 35,492,428 6,871,366 12,705,550 15,915,512
P8,339,731,708 P− P8,339,731,708 P10,781,619,913 P127,038,079 P45,403,553
The amounts disclosed in column (d) include those rights to set-off amounts that are only enforceable and exercisable in the event of
default, insolvency or bankruptcy. These include amounts related to financial collateral both received and pledged, whether cash or non-
cash collateral, excluding the extent of over-collateralization.
35. APPROVAL OF THE FINANCIAL STATEMENTS
The accompanying consolidated and parent company financial statements were authorized for issue by the Parent Company’s BOD on
March 4, 2015.
36. SUPPLEMENTARY INFORMATION UNDER RR NO. 15-2010
In compliance with the requirements set forth by RR 15-2010, hereunder are the details of percentage and other taxes paid or accrued by
the Parent Company in 2014.
Gross receipts tax P698,458,113

Local taxes 50,673,776
Fringe benefit tax 5,246,663
Others 614,523,912
Balance at end of year P1,368,902,464
Withholding Taxes
Details of total remittances of withholding taxes in 2014 and amounts outstanding as of December 31, 2014 are as follows:
Total Amounts
remittances outstanding
Final withholding taxes P621,373,714 P35,976,626
Withholding taxes on compensation and benefits 481,906,675 26,285,168
Expanded withholding taxes 99,533,201 5,488,422
P1,202,813,590 P67,750,216
CHINA BANK BRANCHES
MAKATI MAIN BRANCH (HO) ASUNCION BRANCH BF HOMES BRANCH CONGRESSIONAL AVENUE
CBC Bldg., 8745 Paseo de Roxas Units G6 & G7 Chinatown Steel Towers Aguirre cor. El Grande Aves. BRANCH
cor. Villar Sts., Makati City Asuncion St., San Nicolas, Manila United BF Homes, Parañaque City G/F Unit C The Arete Square
Trunkline: 885-5555 Tel. Nos.: (02) 241-2311/52/59/61 Tel. Nos.: (02) 825-6138/6891/6828 Congressional Ave., Project 8
(Private Exchange Connecting All Fax No.: (02) 241-2352 Fax No.: (02) 825-5979 Quezon City
Departments) Mary Ann E. Tiu Charity N. Santos Tel. Nos.: (02) 351-8648; 351-8645
Fax Nos.: (02) 892-0220; 817-1325 351-8646
Marissa A. Auditor AYALA-ALABANG BRANCH BF HOMES- AGUIRRE BRANCH Fax No.: (02) 351-8645
G/F, CBC-Building Acacia Ave. Margarita Centre, Aguirre Ave. Marlon Darcy A. Mendoza
BINONDO BUSINESS CENTER Madrigal Business Park, Ayala Alabang corner Elsie Gaches Street
CBC Bldg., Dasmariñas Muntinlupa City BF Homes, Parañaque City CORINTHIAN HILLS BRANCH
cor. Juan Luna Sts., Binondo, Manila Tel. Nos.: (02) 807-0673/74 Tel. Nos.: (02) 799-4707/4942 G/F The Clubhouse, Corinthian Hills
Trunklines: (02) 247-5388; 8855-222 850-3785; 9640/8888 659-3359/3360 Temple Drive Brgy. Ugong Norte
(Private Exchange Connecting All Fax No.: (02) 850-8670 556-5845 Quezon City
Departments) Victoria G. Capacio Fax No.: (02) 659-3359 Tel. Nos.: (02) 637-3170/3180
Fax Nos.: (02) 241-7058; 242-7225 Maria Adelfa E. Bolivar 637-1915
Shirley T. Tan AYALA-COLUMNS BRANCH Fax No.: (02) 637-1905
G/F The Columns Tower 3 BF RESORT VILLAGE BRANCH Anacleta B. Gloria
Ayala Avenue, Makati City BF Resort Drive cor. Gloria Diaz St.
METRO MANILA Tel. Nos.: (02) 915-3672 to 75 BF Resort Village Talon Dos CUBAO-ARANETA BRANCH
Fax No.: (02) 915-3672 Las Piñas City Shopwise Arcade Building, Times
999 MALL BRANCH Lorela M. Guillermo Tel. Nos.: (02) 873-4540 to 42 Square St., Araneta Shopping Center
Unit 3D-5; 3D-7 999 Shopping Mall Fax No.: (02) 873-4543 Cubao, Quezon City
Bldg. 2 Recto-Soler Sts. BALINTAWAK-BONIFACIO BRANCH Heizel P. Bautista Tel. Nos.: (02) 911-2369/70
Binondo, Manila 657 A. Bonifacio Avenue 438-3830 to 32; 911-2397
Tel. Nos.: (02) 523-1216/ 1217/ 1218/ Balintawak, Quezon City BLUMENTRITT BRANCH Fax No.: (02) 911-2432
1219 Tel. Nos.: (02) 361-3449; 361-7825 1777-1781 Cavite corner Leonor Rivera Arnulfo C. Tongson
Fax No.: (02) 523-1215 (02) 362-3660; 361-0450 St., Blumentritt, Sta. Cruz, Manila
Arnold S. Castillo Fax No.: (02) 361-0199 Tel. Nos.: (02) 742-0254; 711-8589 CUBAO-AURORA BRANCH
Vivian T. Kho Fax No.: (02) 711-8541 911 Aurora Boulevard Extension corner
ANTIPOLO CITY BRANCH Jennet P. Jose Miami Street, Cubao, Quezon City
G/F BudgetLane Arcade BALUT BRANCH Tel. Nos.: (02) 912-5164/57
No. 6, Provincial Road North Bay Shopping Center BO. KAPITOLYO BRANCH 913-4675/76; 911-3524
Brgy. San Jose, Antipolo City, Rizal Honorio Lopez Boulevard G/F P&E Building, 12 United corner Fax No.: (02) 912-5167
Tel. Nos.: (02) 650-3277; 650-2087 Balut, Tondo, Manila First Sts. Bo. Kapitolyo, Pasig City Warlito R. Estrella
695-1509 Tel. Nos.: (02) 253-9921/29 Tel. Nos.: (02) 634-8370/8915/3697
Fax No.: (02) 650-2640 253-9620; 251-1182/86 Fax No.: (02) 634-7504 D. TUAZON BRANCH
Judy Kristine N. Achacoso Fax No.: (02) 253-9917 Ana Victorina D. Camacho 174 A-B D. Tuazon St., Brgy. Maharlika
Josephine D. Paredes Sta. Mesa Heights, Quezon City
ANTIPOLO- SUMULONG HIGHWAY BONNY SERRANO BRANCH Tel. Nos.: (02) 731-2516/2508
BRANCH BANAWE BRANCH G/F Greenhills Garden Square Fax No.: (02) 731-0592
No. 219 Sumulong Highway CBC Building, 680 Banawe Avenue 297 Col. Bonny Serrano Ave. Ella Jane D. Cortez
Brgy. Mambugan, Antipolo City, Rizal Sta. Mesa Hts. District I, Quezon City Quezon City
Tel. Nos.: (02) 632-7573; 655-8087 Tel. Nos.: (02) 743-7486/88 Tel. Nos.: (02) 410-0677; 997-8043 DASMARIÑAS VILLAGE BRANCH
Fax No.: (02) 632-7309 416-7028/30; 711-8694 997-8031 2283 Pasong Tamo Ext.
Crisostomo L. Celaje Fax No.: (02) 743-7487 Fax No.: (02) 410-0677 corner Lumbang Street, Makati City
Rodolfo S. De Lara Arnold Y. Matutina Tel. Nos.: (02) 894-2392/93
ARANETA AVE. BRANCH 813-2958
Philippine Whithasco Bldg. BANAWE- MA. CLARA BRANCH CAINTA BRANCH Fax No.: (02) 894-2355
420 Araneta Avenue G/F Prosperity Bldg., Banawe St. CBC Bldg (Beside Sta. Lucia East Mall) Ruth D. Holmes
cor. Bayani St., Quezon City Quezon City Felix Ave. (Imelda Ave.), Cainta, Rizal
Tel. Nos.: (02) 731-2252; 731-2261 Tel. Nos.: (02) 732-1060; 740-4864 Tel. Nos.: (02) 646-0691/93 DIVISORIA-STA. ELENA BRANCH
732-4153 743-8967 645-9974; 682-1795 New Divisoria Condominium Center
731-2179; 731-2216 Fax No.: (02) 740-4864 Fax No.: (02) 646-0050 632 Sta. Elena St. Binondo, Manila
410-6753 Raidis M. De Guzman Donna G. Del Rosario Tel. Nos.: (02) 247-1435 to 37
Fax No.: (02) 410-3026 Fax No.: (02) 247-1436
Arlene T. Uy BEL-AIR BRANCH CAPITOL HILLS BRANCH Mary Elizabeth Uy
G/F Avant Building, 48 Jupiter G/F 88 Design Pro Building Capitol Hills
ARRANQUE BRANCH cor. Mars Streets, Bel-Air Village Old Balara, Quezon City DON ANTONIO BRANCH
Don Felipe Building Makati City Tel. Nos.: (02) 952-7776/7805/7804 G/F Royale Place, Don Antonio Ave.
675 Tomas Mapua St., Sta. Cruz Tel. Nos.: (02) 897-2212; 899-4186 Fax No.: (02) 952-7806 Brgy. Old Balara, Quezon City
Manila 899-0685 Joanna Leigh R. Gojar Tel. Nos.: (02) 932-9477
Tel. Nos.: (02) 733-3477; 734-4777 Fax No.: (02) 890-4062 952-9678/9354
733-7704; 733-8335 to 40 Glenn R. Narvaez COMMONWEALTH AVENUE Fax No.: (02) 952-9344
734-4497; 734-4501/06 BRANCH Lilibeth M. David
Fax No.: (02) 733-3481 BETTER LIVING SUBD. BRANCH LGF Ever Gotesco Mall
Flora C. Peña 128 Doña Soledad Ave., Parañaque City Commonwealth Center DEL MONTE AVENUE BRANCH
Tel. Nos.: (02) 556-3467; 556-3468 Commonwealth Avenue corner No. 497 Del Monte Ave.
556-3470 Don Antonio Road, Quezon City Bgry. Manresa, Quezon City
Fax No.: (02) 556-3470 Tel. Nos.: (02) 932-0818/0820 Tel. Nos.: (02) 413-2826; 413-2825
Flormina B. Jacinto 431-5000/01 916-8828; 871-2745
Fax No.: (02) 932-0822 Fax No.: (02) 361-1101
Meneleo S. Bernardo Wendy C. Tan
BRANCH DIRECTORY 169
DEL MONTE- MATUTUM BRANCH ESPAÑA BRANCH GREENHILLS BRANCH KALOOKAN BRANCH
No. 202 Del Monte Avenue España cor. Valencia Sts. G/F Gift Gate Bldg. CBC Bldg., 167 Rizal Avenue Extension
near corner Matutum St. Sampaloc, Manila Greenhills Shopping Center Grace Park, Kalookan City
Brgy. St. Peter, Quezon City Tel. Nos.: (02) 741-9572/6209 San Juan, Metro Manila Tel. Nos.: (02) 364-0515/35
Tel. Nos.: (02) 731-2535; 731-2571 741-6208/9565 Tel. Nos.: (02) 721-0543/56 364-0717/31; 364-0494
413-2118; 416-7791 Fax No.: (02) 741-6207 721-3189; 727-9520 364-9948; 366-9457
Fax No.: (02) 416-7791 Jose Omar S. Yuan 724-5078; 724-6173 Fax No.: (02) 364-9864
Stella A. Lim 727-2798 Danilo T. Sarita
EXAMINER BRANCH Fax No.: (02) 726-7661
E. RODRIGUEZ- HILLCREST BRANCH No. 1525 Quezon Ave. Maria Marta Theresa S. Suarez KALOOKAN- 8th AVE. BRANCH
No. 402 E. Rodriguez Sr. Blvd. cor. Examiner St., West Triangle No. 279 Rizal Avenue corner 8th Ave.
Cubao, Quezon City Quezon City GREENHILLS-ORTIGAS BRANCH Grace Park, Kalookan City
Tel. Nos.: (02) 571-8927 to 29 Tel. Nos.: (02) 376-3313/3314 CBC-Building, 14 Ortigas Avenue Tel. Nos.: (02) 287-0001; 287-0262
Fax No.: (02) 571-8927 376-3317/3318 Greenhills, San Juan, Metro Manila Fax No.: (02) 287-0262
Rachel D. Umali Fax No.: (02) 376-3315 Tel. Nos.: (02) 723-0530/01 Josephine D. Paredes
Crislyn David 723-0502/04; 726-1492
E. RODRIGUEZ SR. BLVD. BRANCH Fax Nos.: (02) 723-0556; 725-9025 KALOOKAN- CAMARIN BRANCH
CBC Bldg., #286 E. Rodriguez Sr. Blvd. EVANGELISTA BRANCH Jose Redentor V. Trinidad Annex Bldg. Space No. 3, Zabarte
Brgy. Damayang Lagi, Quezon City Evangelista corner Gen. Estrella Sts. Town Center, No. 588 Camarin Road
Tel. Nos.: (02) 416-3166; 722-5860 Bangkal Makati City HEROES HILLS BRANCH corner Zabarte Road, Kalookan City
722-5893; 725-9641 (MCB) Tel. Nos.: (02) 759-5095; 759-5096 Quezon Ave. corner J. Abad Santos Tel. Nos.: (02) 442-6830; 442-7541
Fax No.: (02) 726-2865 856-0434; 856-0433 Street, Heroes Hills, Quezon City Fax No.: (02) 442-6825
Ana Ma. Raquel Y. Samala Fax No.: (02) 759-5096 Tel. Nos.: (02) 351-4359/5121 Albert V. Timbang
Sheijan A. Baladji 411-3375; 412-5697
EASTWOOD CITY BRANCH Fax No.: (02) 351-5121 KALOOKAN- MONUMENTO
Unit D, Techno Plaza One FAIRVIEW BRANCH Mirasol C. Ruiz BRANCH
Eastwood City Cyberpark G/F Angelenix House, Fairview Ave. 779 Mc Arthur Highway, Kalookan City
E. Rodriguez Jr. Ave., (C-5) corner Camaro St., Quezon City ILAYA BRANCH Tel. Nos.: (02) 364-2571; 361-3270
Bagumbayan, Quezon City Tel. Nos.: (02) 937-5597; 938-9636 #947 APL-YSL Bldg., Ilaya 921-3043
Tel. Nos.: (02) 706 3491/3493/ 937-8086; 461-3004 Tondo, Manila Fax No.: (02) 361-3271
1979/3320/3448 Fax No.: (02) 937-8086 Tel. Nos.: (02) 245-2416; 245-2548 Maria Teresa A. Del Rosario
Fax No.: (02) 438-5531 Anna Mercedes B. Flores 245-2557
Ramiro A. Amanquiton Fax No.: (02) 245-2545 KAMIAS BRANCH
FILINVEST CORPORATE CITY Jefferson G. Ching G/F CRM Building II, 116 Kamias Road
EDSA-KALOOKAN BRANCH BRANCH corner Kasing-Kasing Street
No. 531 (Lot 5 Block 30) EDSA G/F Wilcon Depot, Alabang- Zapote INTRAMUROS BRANCH Quezon City
near corner Biglang Awa Street road cor. Bridgeway Ave., Filinvest No. 409 A. Soriano Avenue Tel. Nos.: (02) 433-6007; 920-7367
Kalookan City Corporate City, Alabang, Muntinlupa Intramuros, Manila 920-8770
Tel. Nos.: (02) 442-4338 to 40 Tel. Nos.: (02) 775-0097/0126 Tel. Nos.: (02) 528-4241; 536-1044 Fax No.: (02) 920-5723
Fax No.: (02) 442-4339 842-1993/2198 536-5971; 310-5122 Mary Ann P. Arroyo
Josephine D. Paredes Fax No.: (02) 775-0322 Fax No.: (02) 536-1044
Mary Grace D.P. Macaraig Shirley L. Coquinco KARUHATAN BRANCH
EDSA-TIMOG AVE. BRANCH No. 248 McArthur Highway
G/F Richwell Corporate Center FORT BONIFACIO GLOBAL CITY J. ABAD SANTOS AVENUE BRANCH Karuhatan, Valenzuela City
102 Timog Ave., Brgy. Sacred Heart BRANCH 2159 J. Abad Santos Ave. Tel. Nos.: (02) 291-0431/0175
Quezon City G/F Marajo Tower, 26th Street cor. Batangas St., Tondo, Manila 440-0033
Tel. Nos.: (02) 441-5225 to 27 cor. 4th Avenue, Fort Bonifacio Tel. Nos.: (02) 255-1201 to 02 Fax No.: (02) 440-0033
Fax No.: (02) 441-5228 Global City, Taguig City 255-1204 Rosa C. Arteche
Antonio J. Tan, Jr. Tel. Nos.: (02) 799-9072/9074 Fax No.: (02) 255-1203
856-4416; 4891/5196 Gil P. Navelgas KATIPUNAN AVE. – ST. IGNATIUS
ELCANO BRANCH (02) 403-1558 (MCB) BRANCH
G/F Elcano Tower, Elcano Street Fax No.: (02) 856-4416 JUAN LUNA BRANCH CBC Building, No. 121 Katipunan Ave.
San Nicolas, Manila Shellane S. Salgatar G/F Aclem Building, 501 Juan Luna St. Brgy. St. Ignatius, Quezon City
Tel. Nos.: (02) 244-6760; 244-6765 Binondo, Manila Tel. Nos.: (02) 913-5532; 912-5003
244-6779 GIL PUYAT AVENUE BRANCH Tel. Nos.: (02) 247-3570/3795/3786 913-3226
Fax No.: (02) 244-6760 Mitsu Bldg., No. 65 Sen. Gil Puyat Ave. 480-0211 Fax No.: (02) 913-5532
Gervie Roy S. Mendoza Brgy. Palanan, Makati City Fax No.: (02) 247-3795 Ramiro Mateo D. Valdivia
Tel. Nos.: (02) 844-0492/94 Mary Ann K. Abrigo
ERMITA BRANCH 844-0688/90 LAS PIÑAS BRANCH
Ground Floor A, Ma. Natividad Bldg. Fax No.: (02) 844-0497 KALAYAAN AVE. BRANCH CBC- Bldg., Alabang-Zapote Road
#470 T. M. Kalaw cor. Cortada Sts. Juvy P. Caguiat G/F PPS Building, Kalayaan Avenue cor. Aries St., Pamplona Park Subd.
Ermita, Manila Quezon City Las Piñas City
Tel. Nos.: (02) 525-6477; 536-7794 GREENBELT 1 BRANCH Tel. Nos.: (02) 332-3858 to 60 Tel. Nos.: (02) 874-6204; 874-6210
525-6544; 523-0074 G/F Greenbelt 1, Legaspi Street near Fax No.: (02) 332-3859 Fax No.: (02) 874-6414
523-9862 corner Paseo de Roxas, Makati City Rowena C. Lagman Myra D. Adriano
Fax No.: (02) 525-8137 Tel. Nos.: (02) 836-1387; 836-1405
Gloria G. Mañosca 836-1406
Fax No.: (02) 836-1406
Evanzueda T. Moran
CHINA BANK BRANCHES

LAS PIÑAS- MANUELA BRANCH MALABON-GOV. PASCUAL BRANCH MARIKINA- SSS VILLAGE BRANCH NOVALICHES-SANGANDAAN
Alabang-Zapote Road cor Philamlife CBC Building, Gov. Pascual Avenue Lilac cor. Rainbow Sts. SSS Village BRANCH
Ave., Pamplona Dos, Las Piñas City Malabon City Concepcion Dos, Marikina City CBC Building, Quirino Highway
Tel. Nos.: (02) 872-9801/9572/9533 Tel. Nos.: (02) 352-1816/17 Tel. Nos.: (02) 948-5135; 941-7709 corner Tandang Sora Ave.
871-0770 352-1822; 961-2147 997-3343 Brgy. Sangandaan, Novaliches
Fax No.: (02) 871-0771 Fax No.: (02) 352-1822 Fax No.: (02) 942-0048 Quezon City
Mario D. Dalangin Amy A. Go Nerissa J. Ramos Tel. Nos.: (02) 935-3049; 935-3491
Fax No.: (02) 935-2130
LEGASPI VILLAGE -AIM BRANCH MALABON-POTRERO BRANCH MASANGKAY BRANCH Ronaldo T. Uy
G/F Cacho-Gonzales Building, CBC Bldg., McArthur Highway 959-961 G. Masangkay Street
101 Aguirre cor. Trasierra Streets Potrero, Malabon Binondo, Manila NOVALICHES-TALIPAPA BRANCH
Legaspi Village, Makati City Tel. Nos.: (02) 448-0524/25 Tel. Nos.: (02) 244-1828/35/48/56/59 528 Copengco Bldg., Quirino Highway
Tel. Nos.: (02) 818-8156; 818-0734 361-8671/7056 Fax No.: (02) 244-1833 Talipapa, Novaliches, Quezon City
818-9649; 894-5882 to 85 Fax No.: (02) 448-0525 Jeannette H. Chan Tel. Nos.: (02) 936-2202; 936-3311
Fax No.: (02) 818-0240 Leslie Y. De Los Angeles 936-7765
Ma. Luisa C. Rivera MASANGKAY- LUZON BRANCH Fax No.: (02) 936-2202
MALANDAY BRANCH 1192 G. Masangkay St., Sta. Cruz Mirian P. Jose
LEGASPI VILLAGE -C. PALANCA CBC Bldg. McArthur Highway Manila
BRANCH Malanday, Valenzuela City Tel. Nos.: (02) 255-0739; 254-9974 NOVALICHES- ZABARTE
Suite A, Basic Petroleum Building Tel. Nos.: (02) 432-9787 254-9335 G/F C.I. Bldg 1151 Quirino Highway
104 C. Palanca Jr. Street 292-6956/57; 445-3201 Fax No.: (02) 254-9974 corner Zabarte Road, Brgy. Kaligayahan
Legaspi Village, Makati City 432-9785 Gina C. Chua Novaliches, Quezon City
Tel. Nos.: (02) 894-5915/18; 810-1464 Fax No.: (02) 292-6956 Tel. Nos.: (02) 461-7691; 461-7694
Fax No.: (02) 894-5868 Miguela Gladiola G. Santos MAYON BRANCH 461-7698
Ma. Rosalie F. Cipriano 561-B. Mayon St., Brgy. N.S. Amoranto Fax No.: (02) 461-7691
MANDALUYONG-BONI AVE. Quezon City Isidro B. Mamuri
LEGASPI VILLAGE -PEREA BRANCH BRANCH Tel. Nos.: (02) 731-9054/2766
G/F Greenbelt Mansion, 106 Perea St. G/F VOS Bldg. Boni Avenue corner 741-2409 NUEVA BRANCH
Legaspi Village, Makati City San Rafael Street Mandaluyong City Fax No.: (02) 731-2766 Unit Nos. 557 & 559 G/F Ayson
Tel. Nos.: (02) 893-2273/2272/2827 Tel. Nos.: (02) 746-6283/85 Teresita G. Sy Building, Yuchengco St.
Fax No.: (02) 893-2272 534-2289 Binondo, Manila
Adela A. Evangelista Fax No.: (02) 534-1968 MEZZA RESIDENCES BRANCH Tel. Nos.: (02) 247-6374; 247-6396
Paul J. Siongco G/F Mezza Residences, Aurora Blvd. 247-0493; 480-0066
LEGASPI VILLAGE - SALCEDO corner Araneta Avenue Fax No.: (02) 247-6396
BRANCH MANDALUYONG-PIONEER BRANCH Brgy. Doña Imelda, Quezon City Melissa S. Uy
G/F Fedman Suites UG-05 Globe Telecom Plaza Tower I Tel. Nos.: (02) 516-0764 to 66
199 Salcedo Street Pioneer Street, Mandaluyong City Fax No.: (02) 516-0764 ONGPIN BRANCH
Legaspi Village, Makati City Tel. Nos.: (02) 746-6949; 635-4198 Manuel S. Aurora G/F Se Jo Tong Building
Tel. Nos.: (02) 893-7680; 893-2618 632-1399 808 Ongpin Street, Sta. Cruz, Manila
759-2462 Fax No.: (02) 746-6948 MUNTINLUPA- PUTATAN BRANCH Tel. Nos.: (02) 733-8962 to 66
(02) 893-1503; 816-0905 Marie Jane V. Malig G/F Teknikos Bldg., National Highway 735-5362
Fax No.: (02) 893-3746 Brgy. Putatan, Muntinlupa City Fax No.: (02) 733-8964
Manuel O. Yap MARIKINA- STA. ELENA BRANCH Tel. Nos.: (02) 511-0980; 808-1817 Dolly C. Diu
250 J.P. Rizal Street, Sta. Elena Fax No.: (02) 808-1819
MAGALLANES VILLAGE BRANCH Marikina City Carina A. Cariño ORTIGAS-ADB AVE. BRANCH
G/F DHI Bldg., No. 2 Lapu-Lapu Ave. Tel. Nos.: (02) 646-4281; 646-4277 LGF City & Land Mega Plaza
corner EDSA, Magallanes Village 646-4279; 646-1807 N. DOMINGO BRANCH ADB Ave. cor. Garnet Rd.
Makati City Fax No.: (02) 646-1807 G/F The Main Place, No. 1 Ortigas Ctr., Pasig City
Tel. Nos.: (02) 757-0272/0240 Rosa Linda R. Yuseco Pinaglabanan cor. N. Domingo Sts. Tel. Nos.: (02) 687-2457/58
852-1290; 852-1245 San Juan City 687-2226/3263
Fax No.: (02) 852-1245 MARIKINA- FAIRLANE BRANCH Tel. Nos.: (02) 470-2915 to 17 Fax No.: (02) 687-2457
Ma. Monica M. Ela G/F E & L Patricio Building Fax No.: (02) 470-2916 Jossef Dennis Z. Timbol
No. 809 J.P. Rizal Ave. Jocelyn S. Salvador
MAKATI AVENUE BRANCH Concepcion Uno, Marikina City ORTIGAS AVE. EXT.- RIVERSIDE
G/F CBC Building, Makati Ave. Tel. Nos.: (02) 997-0684; 997-0897 NAVOTAS BRANCH BRANCH
cor. Hercules St., Makati City 998-1817; 948-6120 (MCB) No. 500 M. Naval St. near Unit 2-3 Riverside Arcade Ortigas
Tel. Nos.: (02) 890-6971 to 74 Fax No.: (02) 997-0897 corner Lacson St., Brgy. North Bay Avenue Extension corner Riverside
Fax No.: (02) 890-6975 Nerissa J. Ramos Boulevard North (NBBN), Navotas City Drive, Brgy. Sta. Lucia, Pasig City
Ma. Emma Lourdes A. Libas Tel. Nos.: (02) 283-0752 to 54 Tel. Nos.: (02) 748-1808; 748-4426
MARIKINA- GIL FERNANDO Fax No.: (02) 283-0752 655-7403; 655-8350
MALABON-CONCEPCION BRANCH BRANCH Maria Cristina B. Tamayo Fax No.: (02) 655-8350
Gen. Luna corner Paez Streets Block 9, Lot 14 Gil Fernando Ave. Tita C. Ibarbia
Concepcion, Malabon Marikina City NOVALICHES BRANCH
Tel. Nos.: (02) 281-0102 to 05 Tel. Nos.: (02) 646-0780; 646-8032 954 Quirino Highway, Novaliches ORTIGAS CENTER BRANCH
(02) 281-0293 358-2138 Proper, Novaliches, Quezon City Unit 101 Parc Chateau Condominium
Fax No.: (02) 281-0106 Fax No.: (02) 646-8032 Tel. Nos.: (02) 936-3512 Onyx corner Sapphire Streets
Ma. Elenita M. Baradi Imelda F. Polenday 937-1133/35/36 Ortigas Center, Pasig City
Fax No.: (02) 936-1037 Tel. Nos.: (02) 633-7960/70/53/54
Edwin T. Tamayo 634-0178
Fax No.: (02) 633-7971
Virginia G. Go
ORTIGAS COMPLEX BRANCH PASIG- MERCEDES BRANCH QUIAPO BRANCH SHAW-SUMMIT ONE BRANCH
G/F Padilla Building, F. Ortigas Jr. Road Commercial Motors Corp. Compound 216-220 Villalobos St., Quiapo, Manila Unit 102 Summit One Office Tower
Ortigas Center, Pasig City Mercedes Ave., Pasig City Tel. Nos.: (02) 733-2052/59/61 530 Shaw Boulevard Mandaluyong City
Tel. Nos.: (02) 634-3469; 631-2772 Tel. Nos.: (02) 628-0197/0209 733-6282/86 Tel. Nos.: (02) 531-3970; 531-5736
Fax No.: (02) 633-9039 628-0201 Fax No.: (02) 733-6282 531-4058; 531-1304
Christabel Ethel C. Gabriana Fax No.: (02) 628-0211 Leslie C. So 533-8723; 533-4948
Rosanna H. Malavega Fax No.: (02) 531-9469
ORTIGAS-JADE DRIVE BRANCH ROOSEVELT AVE. BRANCH Lilian B. Orlina
Unit G-03, Antel Global PASIG-SANTOLAN BRANCH CBC Bldg., #293 Roosevelt Ave.,
Corporate Center, Jade Drive G/F Felmarc Business Center, Amang San Francisco Del Monte, Quezon City SM AURA PREMIER BRANCH
Ortigas Center, Pasig Rodriguez Avenue, Santolan, Pasig City Tel. Nos.: (02) 371-5133 to 35 L/G SM Aura Premier, McKinley
Tel. Nos.: (02) 638-4489; 638-4490 Tel. Nos.: (02) 646-0635; 682-3474 410-2160; 410-1957 Parkway, Fort Bonifacio Global City
638-4510; 638-4540 682-3514; 681-4575 371-2766 Taguig City
Fax No.: (02) 638-4540 Fax No.: (02) 646-0514 Fax No.: (02) 371-2765 Tel. Nos.: (02) 808-9727; 808-9701
Grace N. Soriano Joanaru B. Macalagay Eileen M. Felipe Fax No.: (02) 808-9701 (telefax)
Jacquiline M. Manalo
PACO BRANCH PASIG- SM SUPERCENTER BRANCH SALCEDO VILLAGE-TORDESILLAS
Gen. Luna corner Escoda Street, G/F SM Supercenter Pasig, Frontera BRANCH SM CITY BICUTAN BRANCH
Paco, Manila Drive, C-5, Ortigas, Pasig City G/F Prince Tower Condominium LGF, Bldg. B, SM City Bicutan
Tel. Nos.: (02) 526-6492 Tel. Nos.: (02) 706-3207 to 09 14 Tordesillas St., Salcedo Village Doña Soledad Ave.
536-6630/31/72 Fax No.: (02) 706-3208 Makati City cor. West Service Rd., Parañaque City
Fax No.: (02) 536-6657 Maria Norissa D. Mempin Tel. Nos.: (02) 813-4901/32/33 Tel. Nos.: (02) 821-0600/0700
Susan V. Co 813-4944/52 777-9347
PASO DE BLAS BRANCH Fax No.: (02) 813-4933 Fax No.: (02) 821-0500
PACO- OTIS BRANCH G/F CYT Bldg., No. 178 Paso de Blas Pamela Joyce E. Gonzalez Kathlyn I. Abalos
G/F Union Motor Corporation Bldg. Valenzuela City
1760 Dra. Paz Guazon St.,Paco, Manila Tel. Nos.: (02) 292-3215/3213/3216 SALCEDO VILLAGE-VALERO SM CITY BF PARAÑAQUE BRANCH
Tel. Nos.: (02) 561-6902; 561-6981 Fax No.: (02) 444-8850 BRANCH G/F SM City BF Parañaque
564-2247 Ma. Letecia G. Milan G/F Valero Tower, 122 Valero Street Dr. A. Santos Ave. corner President’s
Fax No.: (02) 561-6981 Salcedo Village, Makati City Avenue, Parañaque City
Ma. Victoria O. Rondilla PASONG TAMO BAGTIKAN BRANCH Tel. Nos.: (02) 892-7768/69 Tel. Nos.: (02) 825-3201; 825-2990
G/F Trans-Phil House 1177 Chino Roces 812-9207; 893-8188/96 825-3095; 820-0911
PADRE FAURA BRANCH Ave. cor. Bagtikan St., Makati City Fax No.: (02) 892-7769 Fax No.: (02) 825-1062
G/F Regal Shopping Center, A. Mabini Tel. Nos.: (02) 403-4820; 403-4821 Nellie S. Alar Aldrin S. Parco
cor. P. Faura Sts., Ermita, Manila 403-4822; 738-7591
Tel. Nos.: (02) 526-0586; 527-3202 Fax No.: (02) 403-4821 SALES- RAON BRANCH SM CITY MARIKINA BRANCH
527-7865 Rose Marie Y. Oquendo 611 Sales St., Quiapo, Manila G/F SM City Marikina
Fax No.: (02) 527-3202 Tel. Nos.: (02) 734-5806; 734-7427 Marcos Highway, Brgy. Calumpang
Carmina P. Manimbo PASONG TAMO-CITYLAND BRANCH 734-6959 Marikina City
Units UG30-UG32 Cityland Fax No.: (02) 734-6959 Tel. Nos.: (02) 477-1845/46/47
PARAÑAQUE-SUCAT BRANCH Pasong Tamo Tower Elizabeth I. Trinidad 799-6105
No. 8260 (between AMA Computer 2210 Pasong Tamo St., Makati City Fax No.: (02) 477-1847
School and PLDT), Dr. A. Santos Tel. Nos.: (02) 817-9337/47/51/60/82 SAN JUAN BRANCH Donna G. Del Rosario
Avenue, Brgy. SanIsidro,Parañaque City Fax No.: (02) 817-9351 17 (new) F. Blumentritt St.
Tel. Nos.: (02) 820-8951/52 Arnnie B. Alanano San Juan, M. M. SM CITY SAN LAZARO BRANCH
820-2044; 825-2501 Tel. Nos.: (02) 724-8263; 726-4826 UGF (Units 164-166) SM City San
804-3054/58 (Area Office) PATEROS BRANCH 744-5616 to 18 Lazaro, Felix Huertas Street
Fax No.: (02) 825-9517 G/F Adela Building, M. Almeda St. 723-7333 corner A.H. Lacson Extension
Alejandro I. Alvarez, Jr. Brgy. San Roque, Pateros Fax No.: (02) 723-4998 Sta. Cruz, Manila
Tel. Nos.: (02) 531-6929; 531-6810 Jesse Carlo T. Salvador Tel. Nos.: (02) 742-1572; 742-2330
PASAY-LIBERTAD BRANCH 654-3079 493-7115
CBC-Building, 184 Libertad Street Fax No.: (02) 654-3079 SHAW-HAIG BRANCH Fax No.: (02) 732-7935
Antonio Arnaiz Ave., Pasay City Charmaine V. Santos G/F First of Shaw Bldg., Shaw Blvd. Jocelyn E. Tan
Tel. Nos.: (02) 551-7159; 834-8978 corner Haig St., Mandaluyong City
831-0306; 831-0498 PHILAM BRANCH Tel. Nos.: (02) 534-1073; 534-0744 SM CITY TAYTAY BRANCH
Fax No.: (02) 551-7160 #8 East Lawin Drive 718-0218; 621-6459 Unit 147 Bldg. B, SM City Taytay
Michelle C. Ang Philam Homes, QC 531-0795 (MCB) Manila East Road, Brgy. Dolores
Tel. Nos.: (02) 927-9841; 924-2872 Fax No.: (02) 576-3841 (telefax) Taytay, Rizal
PASAY-ROXAS BLVD. BRANCH 929-5734 Virginia T. Bernabe Tel. Nos.: (02) 286-5844; 286-5979
GF Unit G-01 Antel Seaview Towers Fax No.: (02) 929-3115 661-2276, 661-2277
2626 Roxas Blvd., Pasay City April Jean P. Chiong SHAW-PASIG BRANCH Fax No.: (02) 661-2235
Tel. Nos.: (02) 551-9067 to 69 G/F RCC Center, Godofredo B. Ponciano, Jr.
833-5048 QUEZON AVE. BRANCH No. 104 Shaw Boulevard, Pasig City
Fax No.: (02) 551-1768 No. 18 G & D Bldg., Quezon Ave. Tel. Nos.: (02) 634-5018/19 SM FAIRVIEW BRANCH
Ronaldo H. Francisco cor. D. Tuazon St., Q.C. 634-3343/44; 747-7812; LGF, SM City Fairview
Tel. Nos.: (02) 712-3676; 712-0424 634-3340; 638-2751 (MCB) Quirino Avenue corner Regalado
PASIG- C. RAYMUNDO BRANCH 740-7779/80; 712-1105 Fax No.: (02) 634-3344 Avenue, Fairview, Quezon City
G/F MicMar Apartments No. 6353 C. 416-8891; 732-2137 (MCB) Hermenegildo G. Cariño Tel. Nos.: (02) 417-2878; 939-3105
Raymundo Avenue, Brgy. Rosario Fax No.: (02) 712-3006 Fax No.: (02) 418-8228
Pasig City Anita Y. Samala Ma. Nila B. Dujunco
Tel. Nos.: (02) 642-3652; 628-3912
628-3922
Fax No.: (02) 576- 4134
Mary Roslyne D. Balatbat
CHINA BANK BRANCHES

SM MALL OF ASIA BRANCH T. ALONZO BRANCH WEST AVE. BRANCH BAGUIO CITY BRANCH
G/F Main Mall Arcade, SM Mall of Asia Abeleda Business Center 82 West Avenue, Quezon City G/F Juniper Bldg., A. Bonifacio Rd.
Bay Blvd., Pasay City 908 T. Alonzo corner Espeleta Streets Tel. Nos.: 924-3131/3143/6363 Baguio City
Tel. Nos.: (02) 556-0100/0102/0099 Sta. Cruz, Manila 920-6258 Tel. Nos.: (074) 442-9581; 443-5908
625-2246 Tel. Nos.: (02) 733-9581 to 82 411-6010/6011; 928-3270 443-8659 to 60; 442-9663
Fax No.: (02) 556-0099 734-3231 to 33 Fax No.: 924-6364 Fax No.: (074) 442-9663
Charmaine V. Santos Fax No.: (02) 733-9582 Ma. Salome D. Garcia Mary Anne A. Tiwaquen
Hermenia L. Tan
SM MEGAMALL BRANCH XAVIERVILLE BRANCH BAGUIO CITY- ABANAO BRANCH
LGF Building A, SM Megamall TAFT AVE. - QUIRINO BRANCH 65 Xavierville Ave., Loyola Heights G/F Paladin Hotel, No. 136 Abanao Ext.
E. delos Santos Avenue corner 2178 Taft Avenue near corner Quirino Quezon City corner Cariño St., Baguio City
J. Vargas St., Mandaluyong City Avenue, Malate, Manila Tel. Nos.: 433-8696; 929-1265 Tel. Nos.: (074) 424-4837/38
Tel. Nos.: (02) 633-1611/12 Tel. Nos.: (02) 521-7825; 527-3285 927-9826 Telefax No.:(074) 424-4838
633-1788/89 527-6747 Fax No.: 929-3343 Edward U. Catipon
638-7213 to15 Fax No.: (02) 527-3285 Alma A. Sevilla
Fax Nos.: (02) 633-4971 or 633-1788 Jorielyn B. Nuqui BALANGA CITY BRANCH
Edna A. Torralba G/F Dilig Building, Don Manuel Banzon
TIMOG AVE. BRANCH LUZON Street, Balanga City, Bataan
SM CITY MASINAG BRANCH G/F Prince Jun Condominium Tel. Nos.: (047) 237-9388/89
SM City Masinag, Marcos Highway 42 Timog Ave., Q.C. ANGELES CITY BRANCH 791-1779
Brgy. Mayamot, Antipolo City Tel. Nos.: (02) 371-4523/24 CBC-Building, 949 Henson St. Fax No.: (047) 791-1779
Tel. Nos.: (02) 655-8764; 655-9124 371-4522/06 Angeles City Arnel S. Guzman
655-8771 Fax No.: (02) 371-4503 Tel. Nos.: (045) 887-1549; 323-5343
Fax No.: (02) 655-9124 Jasmin O. Ty 887-1550/2291 BALER BRANCH
Kathleen Joy R. Chupungco 625-8660/61 Provincial Road, Barrio Suklayain
TRINOMA BRANCH Fax No.: (045) 625-8661 Baler, Aurora
SM CITY NORTH EDSA BRANCH Unit P002, Level P1, Triangle North of Luzviminda Grace M. Santos Tel. No.: 703-3331 (manila line)
Cyberzone Carpark Bldg. Manila, North Avenue corner EDSA Fax No.: (042) 724-0026
SM City North Avenue Quezon City ANGELES CITY- BALIBAGO BRANCH Renato P. Del Rosario
corner EDSA, Quezon City Tel. Nos.: (02) 901-5570 to 73 Diamond Square, Service Road
Tel. Nos.: (02) 456-6633 Fax No.: (02) 901-5573 McArthur Highway cor. Charlotte St. BALIWAG BRANCH
454-8108/21; 925-4273 Maria-Catleya C. Reyes Balibago, Angeles City, Pampanga Km. 51, Doña Remedios Trinidad (DRT)
Fax No.: (02) 927-2234 Tel. Nos.: (045) 892-5136; 892-5144 Highway, Baliwag, Bulacan
Jasmin O. Ty TUTUBAN PRIME BLOCK BRANCH Fax No.: (045) 892-5144 Tel. Nos.: (044) 766-1066/5257
Rivera Shophouse, Podium Area Rean S. Bernarte 673-5338
SM CITY NORTH EDSA- ANNEX Tutuban Center Prime Block Fax No.: (044) 766-5257
BRANCH C.M. Recto Ave. corner Rivera Street ANGELES CITY- MARQUEE MALL Janet R. De Castro
UGF New Annex Building, SM City Manila BRANCH
North EDSA, EDSA, Quezon City Tel. Nos.: 255-1414/15 G/F Marquee Mall, Angeles City BATANGAS CITY BRANCH
Tel. Nos.: (02) 441-1370/72/73 Fax No.: 255-5441 Pampanga P. Burgos Street, Batangas City
Fax No.: (02) 441-1372 Irene C. Chan Tel. Nos.: (045) 436-4013; 304-0850 Tel. Nos.: (043) 723-0953
Rommel R. Sunga 889-0975 520-6118 (Mla-direct)
UP TECHNO HUB BRANCH Fax No.: (045) 304-0850 Fax No.: 520-6118 (Mla-direct)
SM SOUTHMALL BRANCH UP AyalaLand Techno Hub, Joselito M. Datu (043) 402-9157
UGF SM Southmall Commonwealth Ave., Quezon City Maricel R. Alcantara
Alabang-Zapote Road Talon 1 Tel. Nos.: 441-1331/1332/1334 ANGELES- MCARTHUR HIGHWAY
Almanza, Las Piñas City Fax No.: 738-4800 BRANCH BATANGAS- BAUAN BRANCH
Tel. Nos.: (02) 806-6116/19 Maria Cecilia D. So CBC Bldg. San Pablo St. corner 62 Kapitan Ponso St.
806-3536; 806-3547 Mc Arthur Highway, Angeles City Bauan, Batangas
Fax No.: (02) 806-3548 VALENZUELA BRANCH Tel. Nos.: (045) 323-5793; 887-6028 Tel. Nos.: (043) 702-4481; 702-5383
Virgilio V. Villarosa CBC-Bldg., Mc Arthur Highway cor. 625-9362 Fax No.: (043) 702-4481
V. Cordero St., Marulas, Valenzuela City Fax No.: (045) 887-6029 Ruvishella S. Bicol
SOLER- 168 BRANCH Tel. Nos.: 293-8920; 293-6160 Maria Josefa R. Nisce
G/F R & S Bldg, Soler St., Manila 293-5088 to 90; 293-8919 BATANGAS- LEMERY BRANCH
Tel. Nos.: (02) 242-1041; 242-1674 Fax No.: 293-5091 ANGELES- STO. ROSARIO BRANCH Miranda Building, Ilustre Avenue,
242-1685 Rosa L. Chiu Angeles Business Center Bldg., Teresa Lemery, Batangas
Fax No.: (02) 242-1041 Avenue, Nepo Mart Complex, Angeles Tel. Nos.: (043) 409-3467
Charles T. Salaya VALENZUELA- GEN. LUIS BRANCH City, Pampanga 984-0206 (mla line)
AGT Building, 425 Gen. Luis Street Tel. Nos.: (045) 888-5175; 322-9596 Fax No.: (043) 409-3467 (telefax)
STO. CRISTO BRANCH Paso de Blas, Valenzuela City Fax No.: (045) 888-5175 Enrique M. Padua
711-715 Sto. Cristo Tel. Nos.: 443-6160/61; 983-3861/62 Gina K. Reyes
cor. Commercio Sts., Binondo, Manila Fax No.: 443-6161 BATANGAS- ROSARIO BRANCH
Tel. Nos.: (02) 242-4668/73 Alicia S. Gavino APALIT BRANCH Dr. Gualberto Ave., Brgy. Namunga
242-5361; 241-1243 CBC Building, McArthur Highway Rosario, Batangas
242-5449; 242-3670 VISAYAS AVE. BRANCH San Vicente, Apalit, Pampanga Tel. Nos.: (043) 312-3748; 312-3776
Fax No.: (02) 242-4672; 242-4761 CBC-Building, Visayas Avenue corner Tel. Nos.: (045) 652-1131 Fax No.: (043) 312-3748 (telefax)
Christopher C.Ty Congressional Ave. Ext., Quezon City Fax No.: (045) 302-9560 Lorellie S. Garcia
Tel. Nos.: 454-0189; 925-2173 Nancy T. Mensalvas
455-4334/35
Fax No.: 925-2155
Thelma S. Cabanban
BATANGAS- TANAUAN BRANCH CAVITE-DASMARIÑAS BRANCH ISABELA- ROXAS BRANCH LEGAZPI CITY BRANCH
J.P. Laurel Highway, Tanauan City G/F CBC Bldg., Gen. E. Aguinaldo National Road, Brgy. Bantug G/F Emma Chan Bldg., F. Imperial St.
Batangas Highway, Dasmariñas, Cavite Roxas, Isabela Legazpi City
Tel. Nos.: (043) 702-8956; 702-8957 Tel. Nos.: (046) 416-5036/39/40 Tel. Nos.: (078) 376-0422 Tel. Nos.: (052) 480-6048; 480-6519
Fax No.: (043) 702-8956 (telefax) 584-4083 (Manila line) 376-0434 214-3077
Elvira L. Maliksi Fax No.: (046) 416-5036 Adeluiso L. Cabugos Fax No.: 429-1813 (Direct-Mla line)
Arlyn G. Araña Katherine Y. Barra
BULACAN- BALAGTAS BRANCH GAPAN BRANCH
Mac Arthur Highway, Brgy. San Juan CAVITE-IMUS BRANCH G/F Waltermart Center - Gapan LUCENA CITY BRANCH
Balagatas, Bulacan G/F CBC Bldg., Nueno Avenue Maharlika Highway, Brgy. Bayanihan 233 Quezon Avenue, Lucena City
Tel. Nos.: (044) 769-4376; 769-0359 Tanzang Luma, Imus, Cavite Gapan, Nueva Ecija Tel. Nos.: (042) 373-2317
Fax No.: (044) 769-4376 (telefax) Tel. Nos.: (046) 970-8726/64 Tel. Nos.: (044) 486-0217; 486-0434 373-3872/80/87; 660-7861
Marites B. Go 471-2637; 471-7094 486-0695 Fax No.: (042) 373-3879
Fax No.: (046) 471-2637 Fax No.: (044) 486-0434 Rossana V. Miralles
BULACAN- STA. MARIA BRANCH Noreen S. Purificacion Medel C. Driz
J.P Rizal corner C. de Guzman St. MABALACAT-DAU BRANCH
Poblacion, Sta. Maria CAVITE- MOLINO BRANCH GUAGUA BRANCH R.D. Policarpio Bldg., McArthur
Tel. Nos.: (044) 288-2006; 815-2951 Patio Jacinto, Molino Road Yabut Building, Plaza Burgos Highway, Dau, Mabalacat, Pampanga
913-0334 Molino 3, Bacoor, Cavite Guagua, Pampanga Tel. Nos.: (045) 892-4969; 892-6040
Fax No.: (044) 288-2006 Tel. Nos.: (046) 431-0632 Tel. Nos.: (045) 458-1043; 458-1045 Fax No.: (045) 892-6040
Karen S. Mendoza Telefax No.: (046) 431-0901 458-1046 Lea L. Malinit
Mario E. Sayoc II Fax No.: (045) 458-1043
CABANATUAN CITY BRANCH Nikita D. Masbang MALOLOS CITY BRANCH
Melencio cor. Sanciangco Sts. CAVITE-ROSARIO BRANCH G/F Graceland Mall, BSU Grounds
Cabanatuan City G/F CBC Building, Gen Trias Drive LA TRINIDAD BRANCH McArthur Highway, Guinhawa
Tel. Nos.: (044) 600-4265 Rosario, Cavite G/F SJV Bulasao Building Malolos City, Bulacan
463-0935 to 36 Tel. Nos.: (046) 437-0057 to 59 Km. 4, La Trinidad, Benguet Tel. Nos.: (044) 794-5840; 662-2013
Fax No.: (044) 463-0936 Fax No.: (046) 437-0058 Tel. Nos.: (074) 422-2065/2590 Fax No.: (044) 794-5840
Juanito C. Santiago Ma. Lorna A. Virata 309-1663 Rosemarie F. Bulaong
Fax No.: (074) 422-2065
CABANATUAN-MAHARLIKA DAET BRANCH Liza L. Serrano MARILAO BRANCH
BRANCH Vinzons Avenue, Daet G/F, SM City Marilao
CBC-Building, Maharlika Highway Camarines Norte LA UNION - AGOO BRANCH Km. 21, Brgy. Ibayo, Marilao, Bulacan
Cabanatuan City Tel. Nos.: (054) 440-0066; 440-0067 National Highway, San Jose Norte Tel. Nos.: (044) 711-1803/1814
Tel. Nos.: (044) 463-8586/87 Fax No.: (054) 440-0066 (telefax) Agoo, La Union 815-8956/8957
463-7964 Sheila F. Dalupang Tel. Nos.: (072) 682-0350 Fax No.: (044) 815-8956
600-3590 940-2395 Rommel M. Agacita Marites B. Go
Fax No.: (044) 463-8587 DAGUPAN - PEREZ BRANCH
Edgardo M. Santos Siapno Building, Perez Boulevard LA UNION - SAN FERNANDO MASBATE BRANCH
Dagupan City BRANCH Espinosa Bldg., Zurbito St.
CALAPAN CITY BRANCH Tel. Nos.: (075) 522-2562 to 64 Roger Pua Phee Bldg. Masbate City, Masbate
J.P. Rizal St., San Vicente Fax No.: (075) 522-8308 National Highway, Brgy. 3 Tel. Nos.: (056) 333-2363/65
Calapan City, Oriental Mindoro Marilyn M. Domingo San Fernando, La Union Fax No.: (056) 333-2365
Tel. Nos.: (043) 288-8978/8508 Tel. Nos.: (072) 607-8931/ 8932 Ernie C. Torrevillas
441-0382 DAGUPAN- M.H. DEL PILAR 8933/8934
Fax No.: (043) 441-0382 BRANCH Fax No.: (072) 607-8934 MEYCAUAYAN BRANCH
Ruel A. Añonuevo Carried Realty Bldg., No. 28 M.H. del Fenalyn G. Rimando CBC Building, Malhacan Road
Pilar Street, Dagupan City Meycauayan, Bulacan
CANDON CITY BRANCH Tel. Nos.: (075) 523-5606; 522-8929 LAGUNA - CALAMBA BRANCH Tel. Nos.: (044) 815-6889; 815-6961
CBC Building, National Road 632-0430; 632-0583 CBC-Building, National Highway 815-6958
Poblacion, Candon City, Ilocos Sur Fax No.: (075) 523-5606 Crossing, Calamba, Laguna Fax No.: (044) 815-6961
Tel. Nos.: (077) 674-0574; 674-0554 Rommel M. Agacita Tel. Nos.: (049) 545-7134 to 38 Oscar S. Alhambra, Jr.
Fax No.: (077) 674-0574 (telefax) Fax No.: (049) 545-7138
Lucila R. Gacula DOLORES BRANCH Estela A. Liamson NAGA CITY BRANCH
CBC Bldg., McArthur Highway Centro- Peñafrancia Street, Naga City
CARMONA BRANCH Dolores, City of San Fernando LAGUNA- STA. CRUZ BRANCH Tel. Nos.: (054) 472-1359; 472-1358
CBC Building, Paseo de Carmona Pampanga A. Regidor St., Sta. Cruz, Laguna 473-7920
Brgy. Maduya, Carmona, Cavite Tel. Nos.: (045) 963-3413 to 15 Tel. Nos.: (049) 501-4977; 501-4107 Fax No.: 250-8169 (Manila line)
Tel. Nos.: (046) 430-1969/1277/3568 860-1780/81 501-4085 Glenn A. Altea, Jr.
475-3941 (Manila line) Fax No.: (045) 963-1014 Fax No.: (049) 501-4107
Fax No.: (046) 430-1277 Roberto P. Basilio Erlan Antonio B. Olavere NUEVA ECIJA- STA. ROSA BRANCH
Jonathan John H. Zamora CBC Building, Maharlika Highway
ISABELA-ILAGAN BRANCH LAOAG CITY BRANCH Poblacion, Sta. Rosa, Nueva Ecija
CAUAYAN CITY BRANCH G/F North Star Mall, Maharlika Liberato Abadilla Street Tel. Nos.: (044) 333-6215; 940-1407
G/F Prince Christopher Bldg. Maharlika Highway Brgy. Alibagu, Ilagan, Isabela Brgy 17 San Francisco Laoag City Fax No.: (044) 333-6215
Highway, Cauayan City, Isabela Tel. Nos.: (078) 323-0179; 323-0178 Tel. Nos.: (077) 772-1024/27 Teresita P. Esteban
Tel. Nos.: (078) 652-1849; 897-1338 Fax No.: (078) 323-0179 771-4688; 771-4417
652-0061 Donnabella D. Castillo Fax No.: (077) 772-1035 OCC. MINDORO- SAN JOSE
Fax No.: (078) 652-1849 Mariano G. Garantoza, Jr. BRANCH
Mary Ann S. Gaspar Liboro corner Rizal Street, San Jose
Occidental Mindoro
Tel. Nos.: (043) 491-0095
(043) 491-0096
Gary D. Tabora
CHINA BANK BRANCHES

PANGASINAN-ALAMINOS CITY SM CITY BACOOR BRANCH SOLANO BRANCH TARLAC- PANIQUI BRANCH
BRANCH LGF SM City Bacoor National Highway, Brgy. Quirino Cedasco Building, M. H del Pilar St.
Marcos Avenue, Brgy. Palamis, Tirona Highway corner Solano, Nueva Vizcaya Poblacion, Paniqui, Tarlac
Alaminos City, Pangasinan Aguinaldo Highway, Bacoor, Cavite Tel. Nos.: (078) 326-6559 to 61 Tel. Nos.: (045) 491-8465; 491-8464
Tel. Nos.: (075) 551-3859; 654-0286 Tel. Nos.: (046) 417-0572/ 0746 Fax No.: (078) 326-6561 Fax No.: (045) 491-8465
Fax No.: (075) 654-0296 417-0623; 417-0645 Rafael F. Ilarde Maximo B. Mendoza
Edwin D. Viado Fax No.: (046) 417-0583
Elvira M. Montesa SORSOGON BRANCH THE DISTRICT IMUS BRANCH
PANGASINAN- BAYAMBANG CBC Bldg., Ramon Magsaysay Ave. G/F The District Imus, Anabu I
BRANCH SM CITY CLARK BRANCH Sorsogon City, Sorsogon Imus, Cavite
CBC Building, No. 91, Poblacion Sur G/F (Units 172-173) SM City Clark Tel. Nos.: (056) 211-1610; 421-5105 Tel. Nos.: (046) 416-1417; 416-4294
Bayambang, Pangasinan M. Roxas St., CSEZ, Angeles City Fax No.: (02) 429-1124 Fax No.: (046) 416-4212 (telefax)
Tel. Nos.: (075) 632-5776; 632-5775 Pampanga (Manila Line) Divina S. Ramos
Fax No.: (075) 632-5776 (telefax) Tel. Nos.: (045) 499-0252 to 54 Arthur B. Falcotelo
Miguel C. Jimenez, Jr. Fax No.: (045) 499-0254 TRECE MARTIRES
Pablito P. Flores SUBIC BAY FREEPORT ZONE G/F Waltermart, Governor’s Drive
PANGASINAN-URDANETA BRANCH BRANCH corner City Hall Road
EF Square Bldg., Mc Arthur Highway SM CITY DASMARIÑAS BRANCH CBC Building., Subic Bay Gateway Brgy. San Agustin, Trece Martires City
Poblacion Urdaneta City, Pangasinan LGF SM City Dasmariñas, Governor’s Park, Rizal Highway, Subic Bay Cavite
Tel. Nos.: (075) 632-2637; 632-0541 Drive, Pala-pala, Dasmariñas, Cavite Freeport Zone Tel. Nos.: (046) 460-4897 to 99
656-2022; 656-2618 Tel. No.: (046) 424-1134 Tel. Nos.: (047) 252-1568; 252-1575 Fax No.: (046) 460-4898
Fax No.: (075) 656-2618 Fax No.: (046) 424-1133 252-1591 Lhovina A. Delfin
Glenda N. Anonas Evelyn T. Jardiniano Fax No.: (047) 252-1575
Renato S. Cunanan TUGUEGARAO CITY BRANCH
PASEO DE STA. ROSA BRANCH SM CITY LIPA BRANCH A. Bonifacio Street, Tuguegarao
Unit 3, Paseo 5, Paseo de Sta. Rosa G/F (Units 1111-1113) SM City Lipa, TABACO CITY BRANCH Cagayan
Sta. Rosa City, Laguna Ayala Highway, Brgy. Maraouy, Lipa Ziga Ave. corner Berces Street Tel. Nos.: (078) 844-0175; 844-0831
Tel. Nos.: (049) 837-1831; 502-3016 City Batangas Tabaco City, Albay 846-1709
502-2859; 827-8178 Tel. Nos.: (043) 784-0212; 784-0213 Tel. Nos.: (052) 487-7150; 830-4178 Fax No.: (078) 844-0836
420-8042 (Manila line) Fax No.: (043) 784-0212 Fax No.: 429-1811 (Manila line) Laura L. Utleg
Fax No.: 420-8042 (Manila line) Jose L. Nario, Jr. Geoffrey E. Lim
Gerald A. Reta VIGAN CITY BRANCH
SM CITY NAGA BRANCH TAGAYTAY CITY BRANCH Burgos Street near corner Rizal Street
SAN FERNANDO BRANCH SM City Naga, CBD II, Brgy. Triangulo Olivarez Plaza Tagaytay, E. Aguinaldo Vigan City, Ilocos Sur
CBC Bldg., V. Tiomico Street Naga City Highway, Silang Crossing Tel. Nos.: (077) 722-6968, 674-2272
City of San Fernando, Pampanga Tel. Nos.: (054) 472-1366; 472-1367 Tagaytay City, Cavite Fax No.: (077) 722-6948
Tel. Nos.: (045) 961-3542/49 Fax No.: 250-8183 (Manila Line) Tel. Nos.: 529-8174 (Manila Line) Maria R. Pelayo
963-5458 to 60; 961-5651 Rhoderick F. De Guzman (046) 483-0609, 483-0608
860-1925; 892-3211 Fax No.: 529-8174 (Manila Line)
Fax No.: (045) 961-8352 SM CITY OLONGAPO BRANCH Paula Minette M. Dy VISAYAS
Yalda Y. Ocampo SM City Olongapo, Magsaysay
Dr. cor. Gordon Ave., Brgy. Pag-asa TALAVERA BRANCH ANTIQUE- SAN JOSE BRANCH
SAN FERNANDO- SINDALAN Olongapo City, Zambales CBC Building, Marcos District Felrosa Building, Gen. Fullon St.
BRANCH Tel. Nos.: (047) 602-0039; 602-0040 Talavera, Nueva Ecija corner Cerdena St., San Jose, Antique
Jumbo Jenra Sindalan, Brgy. Sindalan Fax No.: (047) 602-0038 Tel. Nos.: (044) 940-2620; 940-2621 Tel. Nos.: (036) 540-7095; 540-7097
San Fernando City, Pampanga Edelmar D. Lee Fax No.: (044) 940-2620 Fax No.: (036) 540-7096
Tel. Nos.: (045) 866-5464; 455-0569 Edwin Q. Manuel, Jr. Anna Marie B. Sentina
Fax No.: (045) 861-3081 SM CITY PAMPANGA BRANCH
Armando Arepentido Unit AX3 102, Building 4, SM City TARLAC BRANCH BACOLOD-ARANETA BRANCH
Pampanga, Mexico, Pampanga CBC Building, Panganiban near corner CBC-Building, Araneta corner
SAN JOSE CITY BRANCH Tel. Nos.: (045) 455-0304/ 0305 F. Tanedo Street, Tarlac City, Tarlac San Sebastian Streets, Bacolod City
Maharlika Highway, Brgy. Malasin 0306/0307 Tel. Nos.: (045) 982-7771 to 75 Tel. Nos.: (034) 435-0247/48
San Jose City Fax No.: (045) 455-0307 Fax No.: (045) 982-7772 433-3818/19
Tel. Nos.: (044) 958-9094; 985-9096 Roderick R. De Leon Perla S. Aquino 433-7152/53; 709-1618
511-2898 Fax No.: (034) 435-0247
Fax No.: (044) 958-9094 SM CITY SAN PABLO BRANCH TARLAC- CAMILING BRANCH Michelle Lorei R. Gayoma
Josephine D. Cariño G/F SM City San Pablo National Savewise Super Market, Poblacion
Highway, Brgy. San Rafael Camiling, Tarlac BACOLOD- LIBERTAD BRANCH
SAN PABLO CITY BRANCH San Pablo City, Laguna Tel. Nos.: (045) 491-6445; 934-5085 Libertad Street, Bacolod City
M. Paulino Street, San Pablo City Tel. Nos.: (049) 521-0071 to 72 934-5086 Negros Occidental
Tel. Nos.: (049) 562-5481 to 84 Fax No.: (049) 521-0072 Fax No.: (045) 934-5085 Tel. Nos.: (034) 435-1645; 435-1646
Fax No.: (049) 562-5485 Soliman A. Dela Mar Gary V. Eugenio Fax No.: (034) 435-1645
Oscar B. Villavicencio Maria Ruema S. Quimba
SM CITY STA. ROSA BRANCH TARLAC- CONCEPCION BRANCH
SANTIAGO CITY BRANCH G/F SM City Sta. Rosa, Bo. Tagapo G/F Descanzo Bldg., F. Timbol St. BACOLOD- MANDALAGAN BRANCH
Navarro Bldg., Maharlika Highway Sta. Rosa, Laguna San Nicolas Poblacion Lacson Street, Mandalagan
near corner Bayaua St. Tel. Nos.: (049) 534-4640/4813 Concepcion, Tarlac Bacolod City, Negros Occidental
Santiago City, Isabela Fax No.: 901-1632 Tel. Nos.: (045) 491-2987; 491-3028 Tel. Nos.: (034) 441-0500; 441-0388
Tel. Nos.: (078) 682-7024 to 26 (Manila Direct Line) Fax No.: (045) 491-3113 709-0067
Fax No.: (078) 305-2445 Antonio C. Manilay Abigail B. Garcia Fax No.: (034) 709-0067
Shirly Leocel A. Narag Olimpia L. Diones
BACOLOD-NORTH DRIVE BRANCH CEBU- CONSOLACION BRANCH CEBU-MANDAUE BRANCH CEBU-TALISAY BRANCH
Anesa Bldg., B.S. Aquino Drive G/F SM City Consolacion SV Cabahug Building CBC Bldg., 1055 Cebu South
Bacolod City Brgy. Lamac, Consolacion, Cebu 155-B SB Cabahug Street National Road, Bulacao
Tel. Nos.: (034) 435-0063 to 65 Tel. Nos.: (032) 260-0024; 260-0025 Brgy. Centro, Mandaue City, Cebu Talisay City, Cebu
709-1658 Fax No.: (032) 423-9253 Tel. Nos.: (032) 346-5636/37 Tel. Nos.: (032) 272-3342/48
Fax No.: (034) 435-0065 Leah Liza L. Lagumbay 346-2083; 344-4335 491-8200
G. Romulo F. Lopez 422-8188 Fax No.: (032) 272-3346
CEBU- ESCARIO BRANCH Fax No.: (032) 346-2083 Rosie T. Faytone
BAYBAY BRANCH Units 3 & 5 Escario Central, Escario Marissa S. Macaraig
Magsaysay Avenue, Baybay, Leyte Road, Cebu City, City DUMAGUETE CITY BRANCH
Tel. Nos.: (053) 335-2899/98 Tel. Nos.: (032) 416-5860; 520-9229 CEBU-MANDAUE-CABANCALAN CBC Bldg., Real Street Dumaguete
563-9228 Fax No.: (032) 520-9229 BRANCH City
Fax No.: (053) 563-9228 Edgardo A. Olalo M.L. Quezon St., Cabancalan Negros Oriental
Jose Alvin P. Sumalinog Mandaue City, Cebu Tel. Nos.: (035) 422-8058; 225-5442
CEBU-F. RAMOS BRANCH Tel. Nos.: (032) 421-1364; 505-9908 225-5441; 225-4284
BORONGAN BRANCH F. Ramos Street, Cebu City Fax No.: (032) 421-1364 225-5460
Balud II, Poblacion, Borongan Tel. Nos.: (032) 253-9463; 254-4867 Ruel G. Umbay Fax No.: (035) 422-5442
Eastern Samar 412-5858 Iris Gail C. Pantino
Tel. Nos.: (055) 560-9948; 560-9938 Fax No.: (032) 253-9461 CEBU- MANDAUE-J CENTRE MALL
261-5888 Alan Y. Go BRANCH ILOILO-IZNART BRANCH
Fax No.: (055) 560-9938 LGF J Centre Mall, A.S Fortuna Ave. G/F John A. Tan Bldg., Iznart St.
Teresita Angelica U. Marquez CEBU- GORORDO BRANCH Mandaue City, Cebu Iloilo City
No 424. Gorordo Ave., Bo. Camputhaw Tel. Nos.: (032) 520-2898; 421-1567 Tel. Nos.: (033) 337-9477; 509-9868
CATARMAN BRANCH Lahug District, Cebu City, Cebu Fax No.: (032) 520-2898 300-0644
Cor. Rizal & Quirino Sts. Tel. Nos.: (032) 414-0509; 239-8654 Mariza O. Lim Fax No.: (033) 337-9566
Jose P. Rizal St, Catarman Fax No.: (032) 239-8654 Marjorie C. Mangilin
Northern, Samar Richard Alexander T. Lim CEBU-MANDAUE NORTH ROAD
Tel. Nos.: (055)251-8802/8821 BRANCH ILOILO- JARO BRANCH
500-9921 CEBU-GUADALUPE BRANCH G/F Units G1-G3, Basak Commercial CBC Building, E. Lopez St.
Fax No.: (055) 500-9921 CBC Building, M. Velez Street Building (Kel-2) Basak, Mandaue City Jaro, Iloilo City, Iloilo
Victorino T. Caparroso, Jr. cor. V. Rama Ave., Guadalupe Tel. Nos.: (032) 345-8861; 345-8862 Tel. Nos.: (033) 320-3738; 320-3791
Cebu City 420-6767 Fax No.: (033) 503-2955
CATBALOGAN BRANCH Tel. Nos.: (032) 254-7964; 254-8495 Fax No.: (032) 420-6767 Joseph C. Chong
CBC Bldg. Del Rosario St. 254-1916 Ferdinand R. Sy
cor. Taft Avenue, Catbalogan City Fax No.: (032) 416-5988 ILOILO-MABINI BRANCH
Samar Angie G. Divinagracia CEBU- MINGLANILLA BRANCH A. Mabini Street, Iloilo City
Tel. Nos.: (055) 251-2897/98 Unit 9, Plaza Margarita Tel. Nos.: (033) 335-0295; 335-0370
543-8121 CEBU- IT PARK BRANCH Lipata, Minglanilla, Cebu 509-0599
Fax No.: (055) 543-8279 G/F The Link, Cebu IT Park Tel. Nos.: (032) 239-7234; 490-6025 Fax No.: (033) 335-0370
Paul C. Oliva Apas,Cebu City, Cebu Fax No.: (032) 239-7235 Sharlan G. Chu
Tel. Nos.: (032) 266-2559 Christine T. Obiña
CEBU- BOGO BRANCH 262-0982 ILOILO- MANDURRIAO BRANCH
Sim Building, P. Rodriguez Street Odelon C. Logarta CEBU- NAGA BRANCH Benigno Aquino Ave., Brgy. San Rafael
Bogo City, Cebu Leah’s Square, National South Highway Mandurriao, Iloilo City, Iloilo
Tel. Nos.: (032) 434-7119; 266-3251 CEBU – LAHUG BRANCH East Poblacion, Naga City, Cebu Tel. Nos.: (033) 333-3988; 333-4088
Fax No.: (032) 434-7119 JY Square Mall, No. 1 Salinas Tel. No.: (032) 238-7623 Fax No.: (033) 501-6078
Mylen D. Comahig Dr., Lahug, Cebu City Sheila R. Pastor Gina O. So
Tel. Nos.: (032) 417-2122; 233-0977
CEBU BUSINESS CENTER 234-2062 CEBU-SM CITY BRANCH ILOILO-RIZAL BRANCH
CBC Bldg., Samar Loop corner Fax No.: (032) 234-2062 Upper G/F, SM City Cebu, Juan Luna cor. CBC Building, Rizal cor. Gomez Streets
Panay Road, Cebu Business Park Zephyrus C. Celis A. Soriano Avenue, Cebu City Brgy. Ortiz, Iloilo City
Cebu City Tel. Nos.: (032) 232-0754/55 Tel. Nos.: (033) 336-0947; 338-2136
Tel. Nos.: (032) 239-3760 to 64 CEBU-LAPU LAPU BRANCH 231-9140; 412-9699 509-8838
Fax No.: (032) 238-1438 G/F Goldberry Suites, President Fax No.: (032) 232-1448 Fax No.: (033) 338-2144
Victor P. Mayol Quezon National Highway, Pusok Alex M. Campilan Severo Y. Pison IV
Lapu-Lapu City
CEBU-BANILAD BRANCH Tel. Nos.: (032) 340-2098; 494-0631 CEBU- SUBANGDAKU BRANCH KALIBO BRANCH
CBC Bldg., AS Fortuna St. 340-2099 G/F A.D. Gothong I.T. Center, Waldolf Garcia Building
Banilad, Cebu City Fax Nos.: (032) 340-2098/ 494-0631 Subangdaku, Mandaue City, Cebu Osmeña Avenue, Kalibo, Aklan
Tel. Nos.: (032) 346-5870/81 Mary Faith R. Alvez Tel. Nos.: (032) 344-6561; 422-3664 Tel. Nos.: (036) 500-8088; 500-8188
416-1001 344-6621 268-2988
Fax No.: (032) 344-0087 CEBU- MAGALLANES BRANCH Fax No.: (032) 344-6621 Fax No.: (036) 500-8188
Jouzl Marie C. Roña CBC Bldg., Magallanes Sharon Rose L. Onrejas Marylen T. Gerardo
corner Jakosalem Sts., Cebu City
CEBU- CARCAR BRANCH Tel. Nos.: (032) 255-0022/23/25/28 CEBU- TALAMBAN BRANCH MAASIN CITY BRANCH
Dr. Jose Rizal St., Poblacion I 253-0348;255-6093 Unit UG-7 Gaisano Grand Mall, G/F SJC Bldg., Tomas Oppus St.
Carcar, Cebu 255-0266; 412-1877 Brgy. Talamban, Cebu City Brgy. Tunga-Tunga, Maasin City
Tel. Nos.: (032)487-8103; 487-8209 Fax No.: (032) 255-0026 Tel. Nos.: (032) 236-8944; 418-0796 Southern Leyte
266-7093 Susan Y. Tang Fax No.: (032) 236-8944 Tel. Nos.: (053) 381-2287; 381-2288
Fax No.: (032) 487-8103 Ronnie A. Aguilar 570-8488
Mary Ann C. Rio Fax No.: (053) 570-8488
Maria Luisa V. Gonzales
CHINA BANK BRANCHES

NEGROS OCC.- KABANKALAN MINDANAO COTABATO CITY BRANCH DAVAO-SM LANANG BRANCH
BRANCH No. 76 S.K. Pendatun Avenue G/F SM Lanang Premier
CBC Building, National Highway BUTUAN CITY BRANCH Cotabato City, Maguindanao J. P. Laurel Avenue, Davao City
Brgy. 1, Kabankalan, Negros Occidental CBC Building J.C. Aquino Avenue Tel. Nos.: (064) 421-4685/4653 Tel. Nos.: (082) 285-1064
Tel. Nos.: (034) 471-3349; 471-3364 Butuan City Fax No.: (064) 421-4686 285-1053
471-3738 Tel. Nos.: (085) 341-5159; 341-7445 Ariel Cesar O. Romero Fax No.: (082) 285-1520
Ross Ariel Tan (085) 815-3454/55 Janice S. Laburada
225-2081 DAVAO-BAJADA BRANCH
NEGROS OCC.- SAN CARLOS Fax No.: (085) 815-3455 Km. 3, J.P. Laurel Ave. DAVAO-TAGUM BRANCH
BRANCH Sheelah A. Kho Bajada, Davao City 153 Pioneer Avenue, Tagum
Rizal corner Carmona Streets Tel. Nos.: (082) 221-0184; 221-0319 Davao del Norte
San Carlos, Negros Occidental CAGAYAN DE ORO-BORJA BRANCH Fax No.: (082) 221-0568 Tel. Nos.: (084) 655-6307/08
Tel. Nos.: (034) 312-5818; 312-5819 J. R. Borja Street, Cagayan de Oro City Janice B. Tan 400-2289/90
729-3276 Tel. Nos.: (08822) 724-832/33 Fax No.: (084) 400-2289
Fax No.: (034) 729-3276 726-076; (088) 857-3742 DAVAO-BUHANGIN BRANCH Ernesto A. Santiago
Mercedita C. Cortez Fax No.: (088) 857-2212 Buhangin Road, Davao City
Janet G. Tan Tel. Nos.: (082) 300-8335; 227-9764 DAVAO-TORIL BRANCH
ORMOC CITY BRANCH 221-5970 McArthur Highway corner
CBC Building, Real CAGAYAN DE ORO-CARMEN Fax No.: (082) 221-5970 St. Peter Street, Crossing Bayabas
cor. Lopez Jaena Sts. BRANCH Roberto A. Alag Toril, Davao City
Ormoc City, Leyte G/F GT Realty Building Tel. Nos.: (082) 303-3068; 295-2334
Tel. Nos.: (053) 255-3651 to 53 Max Suniel St. corner Yakal St. DAVAO- LANANG BRANCH 295-2332
Fax No.: (053) 561-8348 Carmen, Cagayan de Oro City Insular Village I, Km. 8, Lanang Fax No.: (082) 295-2332
Warren Noel M. Del Valle Tel. Nos.: (08822) 723-091; 724-372 Davao City Gregorio E. Cuta
(088) 858-3902/03 Tel. Nos.: (082)300-1892; 234-7166
PUERTO PRINCESA CITY BRANCH Fax Nos.: (088) 858-3903/ (08822) 234-7165 DIPOLOG CITY BRANCH
Malvar Street near 724-372 Fax No.: (082)300-1892 CBC Building, Gen Luna corner
corner Valencia Street Cresencio C. Co Untian Joselito S. Crisostomo Gonzales Streets, Dipolog City
Puerto Princesa City, Palawan Tel. Nos.: (065) 212-6768 to 69
Tel. Nos.: (048) 434-9891 to 93 CAGAYAN DE ORO- DIVISORIA DAVAO-MA-A BRANCH 908-2008
Fax No.: (048) 434-9892 BRANCH G/F Lapeña Building, Mac Arthur Fax No.: (065) 212-6769
Joselito V. Cadorna RN Abejuela St., South Divisoria Highway, Matina, Davao City Ma. Jesusa Perpetua F. Recentes
Cagayan de Oro City Tel. Nos.: (082) 295-0472; 295-1072
ROXAS CITY BRANCH Tel. Nos.: (08822) 722-641 Fax No.: (082) 295-1072 (telefax) GEN. SANTOS CITY BRANCH
1063 Roxas Ave. cor. Bayot Drive (088) 857-5759 Mary Raluz R. Elicor CBC Bldg., I. Santiago Blvd.
Roxas City, Capiz Fax No.: (088) 857-4200 Gen. Santos City
Tel. Nos.: (036) 621-3203; 621-1780 Agnes O. Adviento DAVAO-MATINA BRANCH Tel. Nos.: (083) 553-1618; 552-8288
522-5775 Km. 4 McArthur Highway Fax No.: (083) 553-2300
Fax No.: (036) 621-3203 CAGAYAN DE ORO-LAPASAN Matina, Davao City Helen Grace L. Fernandez
Anthony V. Arguelles BRANCH Tel. Nos.: (082) 297-4288; 297-4455
CBC Building, Claro M. Recto Avenue 297-5880/81 ILIGAN CITY BRANCH
SILAY CITY BRANCH Lapasan, Cagayan de Oro City Fax No.: (082) 297-5880 Lai Building, Quezon Avenue Extension
Rizal St., Silay City, Negros Occidental Tel. Nos.: (08822) 722-240; 724-540 Petronila G. Narvaez Pala-o, Iligan City
Tel. Nos.: (034) 714-6400; 495-5452 726-242 Tel. Nos.: (063) 221-5477/79
495-0480 (088) 856-1325/1326 DAVAO-PANABO BRANCH 492-3009; 221-3009
Fax No.: (034) 495-0480 Fax Nos.: (088) 856-1325/1326 PJ Realty, Barangay New Pandan Fax No.: (063) 492-3010
Rosemarie G. De La Paz James M. Bomediano Panabo City, Davao del Norte Ronald O. Lua
Tel. Nos.: (084) 628-4057; 628-4065
TACLOBAN CITY BRANCH CAGAYAN DE ORO-PUERTO BRANCH Fax No.: (084) 628-4053 KIDAPAWAN CITY BRANCH
Uytingkoc Building, Avenida Veteranos Luis A. Yap Bldg., Zone 6, Brgy. Puerto Abigail O. Sintos G/F EVA Building, Quezon Blvd.
Tacloban City, Leyte Cagayan de Oro City, Misamis Oriental cor. Tomas Claudio Street
Tel. Nos.: (053) 325-7706 to 08 Tel. Nos.: (088) 880-7183; 880-7185 DAVAO-RECTO BRANCH National Highway, Kidapawan City
523-7700/7800 Fax No.: (088) 880-7183 CBC Bldg., C.M. Recto Ave. Tel. Nos.: (064) 278-3509; 278-3510
Fax No.: (053) 523-7700 Jasmine L. Soriano cor. J. Rizal St., Davao City Fax No.: (064) 278-3509
Felina G. Reyes Tel. Nos.: (082) 221-4481/7028 Wilbert R. Baus
CDO-GAISANO CITY MALL BRANCH 6021/6921/4163
TAGBILARAN CITY BRANCH G/F Gaisano City Mall, C. M. Recto 226-3851; 226-2103 KORONADAL CITY BRANCH
G/F Melrose Bldg. Carlos P. Garcia corner Corrales Extension, Cagayan de Fax No.: (082) 221-8814 Gen. Santos Drive corner Aquino St.
Avenue, Tagbilaran City, Bohol Oro City Carlos C. Tan Koronadal City, South Cotabato
Tel. Nos.: (038) 501-0688; 501-0677 Tel. Nos.: (08822) 745-877; 745-880 Tel. Nos.: (083) 228-7838
411-2484 (088) 880-1051; 880-1052 DAVAO-STA. ANA BRANCH 228-7839; 520-1788
Fax No.: (038) 501-0677 Fax No.: (08822)745-880 (telefax) R. Magsaysay Avenue corner Fax No.: (083) 228-7839
Karen Jean T. Maslog Gina C. Telow F. Bangoy Street, Sta. Ana District Davao Rizkie E. Zaragoza
City
Tel. Nos.: (082) 227-9501/51
227-9601; 221-1054/55
221-6672
Fax No.: (082) 226-4902
Elinor U. Toe
MALAYBALAY CITY BRANCH SOON-TO-OPEN BRANCHES SOON-TO-OPEN BRANCHES PASIG – SAN JOAQUIN BRANCH
Bethelda Building, Sayre Highway No. 43 M. Concepcion Ave.
Malaybalay City, Bukidnon NON RESTRICTED RESTRICTED San Joaquin, Pasig City
Tel. No.: (088) 813-3372
Fax No.: 813-3373 CEBU LAPU-LAPU CENTRO BRANCH CULIAT – TANDANG SORA BRANCH HOLY SPIRIT DRIVE BRANCH
Randolf M. Corrales G.Y. dela Serna St., Opon, Poblacion G/F Royal Midway Plaza CBC Building (for construction)
Lapu-Lapu City, Cebu No. 419, Tandang Sora Ave. Lot 18 Block 6 Holy Spirit Drive
OZAMIZ CITY BRANCH Brgy. Culiat, 1128 Quezon City Don Antonio Heights, Brgy. Holy Spirit
Gomez corner Burgos Streets BINANGONAN BRANCH Tel Nos.: 288-2575; 288-5114 Quezon City
Ozamiz City National Highway, Bo. Tagpos
Tel. Nos.: (088) 521-2658 to 60 Binangonan, Rizal DAMAR VILLAGE BRANCH REGALADO AVE. BRANCH
Fax No.: (088) 521-2659 The Clubhouse, Damar Loop CBC Building (for construction)
Jefferson A. Go MIDSAYAP BRANCH Damar Village, Quezon City Regalado Ave., Greater Lagro
CBC Building, Quezon Ave., Poblacion 4 Tel Nos.: 442-3581;367-5517 Quezon City
PAGADIAN CITY BRANCH Midsayap, Cotabato
Marasigan Building MINDANAO AVE. BRANCH ROOSEVELT – FRISCO BRANCH
F.S. Pajares Avenue, Pagadian City CEBU – N. BACALSO BRANCH G/F LJC Building, 189 Mindanao G/F Norita Bldg., #51 H. Francisco St.
Tel. Nos.: (062) 215-2781/82 N. Bacalso Ave., Basak San Nicolas- Avenue, Bahay Toro, Quezon City corner Roosevelt Avenue, Brgy. Paraiso
925-1116 Mambaling, Cebu City, Cebu Quezon City
Fax No.: (062) 214-3877 E. RODRIGUEZ – ACROPOLIS
Jumilito A. Dayuna CEBU – BANAWA BRANCH G/F Suncrest Building SOLEMARE BRANCH
G/F The J Block, Duterte St., Banawa E. Rodriguez Jr. Ave., Quezon City G-11 Solemare Parksuites
SURIGAO CITY BRANCH Guadalupe, Cebu City, Cebu 5A Bradco Avenue
CBC Building, Amat St. E. RODRIGUEZ – CORDILLERA Aseana Business Park, Pasay City
Barrio Washington, Surigao City ILOCOS NORTE – SAN NICOLAS #291 Units 285 & 287
Surigao del Norte BRANCH E. Rodriguez Sr. Blvd. OROQUIETA
Tel. Nos.: (086) 826-3958, 826-3968 National Highway, Brgy. 2 San Baltazar Brgy. Doña Josefa, Quezon City Oroquieta Street, Manila
Fax No.: (086) 826-3958 San Nicolas, Ilocos Norte
Domilyn S. Villareal SAN JUAN – J. ABAD SANTOS CIRCULO VERDE BRANCH
CABUYAO BRANCH BRANCH Circulo Verde, Calle Industria
VALENCIA BRANCH G/F, Unit 123 Centro Mall Unit 3, City Place Bldg. 8001 Quezon City
A. Mabini Street, Valencia, Bukidnon Cabuyao City, Laguna J. Abad Santos Street, San Juan City
Tel. Nos.: (088) 828-2048/49 MOONWALK BRANCH
222-2356; 222-2417 CAVITE – SILANG BRANCH SALCEDO VILLAGE - LP LEVISTE Milky Way St. cor. Armstrong Avenue
Fax No.: (088) 828-2048 CBC Building (for construction) BRANCH Moonwalk, Parañaque City
Gilmar L. Villaruel J. P. Rizal Street, Poblacion Unit 1-B G/F The Athenaeum
Silang, Cavite San Agustin – LP Leviste Streets CUBAO – P. TUAZON BRANCH
ZAMBOANGA CITY BRANCH Salcedo Village, Makati City No. 287 P. Tuazon Ave. near corner
CBC-Building, Gov. Lim Avenue BULACAN – PLARIDEL BRANCH 18th Avenue, Brgy. San Roque
corner Nuñez Street, Zamboanga City CBC Building (for construction) LEGASPI VILLAGE – AMORSOLO Cubao, Quezon City
Tel. Nos.: (062) 991-2978/79 Cagayan Valley Road, Plaridel, Bulacan BRANCH
991-1266 G/F CAP Bldg, Herrera cor. Amorsolo FIVE E-COM CENTER BRANCH
Fax No.: (062) 991-1266 PANGASINAN – ROSALES BRANCH Sts., Legaspi Village, Makati City G/F Five E-com Center, Harbor Drive
Jaime G. Asuncion CBC Building (for construction) MOA Complex, Pasay City
Calle Dewey, Rosales, Pangasinan LAVEZARES BRANCH
ZAMBOANGA- GUIWAN BRANCH Lavezares Street, San Nicolas, Manila SHAW – GOMEZVILLE BRANCH
G/F Yang’s Tower, M.C. Lobregat TUGUEGARAO – BALZAIN BRANCH Gomezville Street cor. Shaw Blvd.
National Highway, Guiwan Balzain Highway, Tuguegarao City SOUTH TRIANGLE BRANCH Mandaluyong City
Zamboanga City Cagayan Valley G/F Sunshine Blvd. Plaza, Quezon Ave.
Tel. Nos.: (062) 984-1751; 984-1754 cor. Sct. Santiago and Panay Ave. UP VILLAGE – MAGINHAWA BRANCH
Fax No.: (062) 984-1751 SAN MATEO BRANCH Brgy. South Triangle, Quezon City LTR Bldg, No. 46 Maginhawa St.
Alexander B. Lao Gen. Luna Street, San Mateo, Rizal UP Village, Quezon City
SAN ANTONIO VILLAGE – P. OCAMPO
ZAMBOANGA- SAN JOSE GUSU BGC – ONE WORLD PLACE BRANCH BRANCH MANILA – MACEDA BRANCH
BRANCH G/F One World Place, 32nd Avenue JM Macalino Auto Center Daguman Bldg., Maceda St.
Yubenco Star Mall, San Jose Gusu Fort Bonifacio Global City, Taguig City P. Ocampo Street cor. Dungon Street Sampaloc Manila
Zamboanga City, Zamboanga del Sur San Antonio Village, Makati City
Tel. Nos.: (062) 995-6154; 955-6155 BIÑAN BRANCH
Dennis T. Wong Yat Ongoing site prospecting GREENHILLS – MISSOURI BRANCH
Missouri Square Bldg.
GEN. SANTOS II BRANCH No. 101 Connecticut cor. Missouri Sts.
Ongoing site prospecting Greenhills, San Juan City
CHINA BANK OFF-BRANCH ATMS
METRO MANILA Glorietta 4 Midas Hotel Shop and Ride

Between Tequilla Joe’s and (previously Hyatt Hotel), #248 Gen. Luis Street, Novaliches
168 Shopping Mall Banana Leaf, Glorietta 4, Makati City 2702 Roxas Boulevard, Pasay City Quezon City
3/F Food Court, 168 Mall
Sta. Elena Street, Binondo, Manila Glorietta 5 MRT - Boni Shop and Ride 2
G/F, near National Bookstore MRT - Boni Station ATM 2, #248 Gen. Luis Street
999 Mall 2 Makati City EDSA, Mandaluyong City Brgy. Nova Proper, Novaliches
Recto corner Soler St. Quezon City
Binondo, Manila Greenbelt 3 MRT - Cubao Station
Greenbelt 3 Makati Avenue Drop-off MRT - Cubao Station Shopwise - Antipolo
999 Shopping Mall Area, Makati City EDSA, Quezon City M.L. Quezon St., cor. Circumferential
Basement front, 1002-1062 Soler Road, San Roque, Antipolo City
Street, Brgy 293, Zone 28 Greenhills Theater Mall MRT - North Ave.
District 3, Binondo Main Entrance, Greenhills Theater Mall, MRT - North Avenue Station Shopwise - Commonwealth
San Juan, Metro Manila EDSA, Quezon City Blk. 17, Commonwealth Ave.
Alabang Mall Don Antonio, Quezon City
Alabang Town Center, Alabang - Zapote Jackman Emporium MRT - Shaw
Road, Muntinlupa City Jackman Emporium Department Store MRT - Shaw Station SM Hypermarket - Mandaluyong
Building (beside LRT Station and EDSA, Mandaluyong City 121 Shaw Blvd. corner
Ali Mall Gotesco Grand Central) Grace Park, E. Magalona St., Mandaluyong City
ATM Booth # 1 Upper G/F Ali Mall Kalookan City Nova Square
P. Tuazon Boulevard, Araneta Center G/F Nova Square, 689 Quirino Highway SM Hypermarket - MOA
Quezon City Jackman Munoz cor. P. Dela Cruz Brgy. San Bartolome, Ground Floor, SM Hypermarket
along EDSA near cor. Novaliches, Quezon City SM Mall of Asia, Pasay City
Ali Mall 2 Congressional Avenue, Munoz, Q.C.
Times Square Entrance, P. Tuazon One E-Com Center SM Manila
Blvd., Araneta Center, Quezon City JGC PHILS. Alabang SM Mall of Asia, Palm Coast Avenue ATM-3 UG/F Main Entrance
JGC PHILS. Building, Prime Street facing Esplanade, Pasay City Arroceros Side, Manila
Ateneo De Manila University Madrigal Business Park-Phase III
Ateneo De Manila University Ayala Alabang, Muntinlupa City People Support Rockwell SM Megamall Bldg. B
G/F Kostka Hall, Katipunan Avenue Rockwell Business Center Level 2, Building B, SM Megamall
Loyola Heights, Quezon City Kimston Plaza Ortigas Avenue, Pasig City EDSA cor. Julia Vargas St.,
P. Victor St. cor. P. Burgos St., Mandaluyong City
Cash and Carry Guadalupe, Nuevo, Makati City Power Plant R3
Cash & Carry, 2nd Floor, Cash and Stall No. 060 Ground Level SM Muntinlupa
Carry Mall, bet. South Super Highway Landmark - Makati Power Plant Mall, Makati City G/F ATM 2 (beside Rear Entrance)
& Filmore near corner Buendia The Landmark Building Bgy. Tunasan, National Road
Makati City Makati Ave., Ayala Center Puregold - Blumentritt Muntinlupa City
286 Blumentrit Street
Chiang-Kai-Shek Landmark - Trinoma Sta Cruz, Manila SM Taytay Off-branch
Chiang Kai Shek College ATM Slot #4, 3rd floor 2nd Floor Bldg. A, SM City Taytay
1274 P. Algue, Manila Landmark - Trinoma, EDSA Puregold - E. Rodriguez Manila East Road
cor. Mindanao Ave. Extension ATM # 1 - Cosco Building Brgy. Dolores,Taytay, Rizal
China Bank Online Center Pag-asa, Quezon City E. Rodriguez Avenue
Starbucks, China Bank Building cor. G. Araneta Ave., Quezon City Solaire
8745 Paseo de Roxas cor. Villar St. Liana’s - Sampaloc Entertainment City, Aseana Avenue
Makati City 537 M. Earnshaw, Sampaloc, Manila Puregold - Lakefront Paranaque City
Presidio Sudvision, Lakefront
Comembo Commercial Complex Malabon CitiSquare Muntinlupa City Southgate Mall
J.P. Rizal Ext., corner Sampaguita St. G/F ATM 4, C4 Road Southgate Mall, EDSA corner
Comembo, Makati City corner Dagat-dagatan Avenue, Puregold - Paso de Blas Pasong Tamo Extension, Makati City
Malabon City corner Gen. Luis St., Malinta Exit
Dasmariñas Village Association Valenzuela City St. Francis Square
Office Market! Market! 1 Basement 1, Dona Julia Vargas Avenue
1417 Campanilla Street Market! Market! Bonifacio Global City Puregold Jr. - Pandacan cor. Bank Drive, Ortigas Center
Dasmariñas Village, Makati City Taguig, Metro Manila West J. Zamora St., Brgy. 851 Mandaluyong City
Zone 093, Pandacan, Manila
Eastwood City Walk 2 Market! Market! 2 St. Jude College
G/F Eastwood City Walk 2/F, Market! Market! Bonifacio Global Robinsons Galleria Dimasalang St. cor Don Quijote St.
Phase II, Eastwood City Cyberpark, City Taguig, Metro Manila L1-181 Robinson’s Galleria Sampaloc, Manila
188 E. Rodriguez Jr. Ave. EDSA cor. Ortigas Ave., Pasig City
Bagumbayan, Q.C. Market! Market! 3 St. Luke’s - Q.C.
G/F ATM Center in Fiesta Market! Robinsons Galleria 2 St. Luke’s Medical Center
Eastwood CyberMall Market! Bonifacio Global City Taguig L1-181 Robinson’s Galleria Medical Arts Building
2/F Eastwood CyberMall Eastwood Metro Manila EDSA cor. Ortigas Ave., Pasig City E. Rodriguez Sr. Boulevard Q.C.
Avenue, Eastwood City Cyber Park
Bagumbayan, Quezon City Medical City Robinsons Galleria 3 St. Luke’s - The Fort
Medical City, Ortigas Avenue West Wing, EDSA Basement, St. Luke’s Medical Center
Eastwood Mall Pasig City cor. Ortigas Ave., Pasig City 5th Ave., The Fort, Taguig City
Level 1 ATM 2 Phase 2, Eastwood
Mall, E. Rodriguez Jr. Ave. Metro Point Mall Robinsons Place - Manila STI - Delos Santos Medical Center
C-5 Bagumbayan, Q.C. 3/F, Metro Point Mall EDSA G/F Padre Faura Entrance 201 E. Rodriguez Sr. Blvd.
cor. Taft Ave. Pasay City Robinsons Place Manila Pedro Gil Brgy. Pamayong Lagi, Quezon City
Gateway Mall cor. Adriatico St. Ermita, Manila
Booth 4, Level 2 Gateway Mall Metrowalk Taft - U.N.
Cubao, Quezon City ATM 1 Building C, G/F Metrowalk Savers Center G/F Times Plaza,T.M. Kalaw
Commercial Complex, Meralco Ground Floor, Right Side of cor. Gen. Luna St., Manila
Avenue, Pasig City Main Entrance, along EDSA
near corner Taft Avenue, Pasay City
OFF-BRANCH DIRECTORY 179
The A Venue AG&P Davao Adventist Hospital KMSCI

G/F Valdez Site, The A Venue Atlantic, Gulf and Pacific Company Km. 7 McArthur Highway Kidapawan Medical Specialist
7829 Makati Avenue, Makati City of Manila, Inc., San Roque, Bauan Bangkal, Davao City Center, Inc. Sudapin, Kidapawan City
Batangas
Tiendesitas Dipolog Center Mall
Frontera Verde Ortigas Avenue Alfamart - Lumina Dipolog Center Mall,138 Rizal Avenue La Nueva - Minglanilla
cor. C-5, Pasig City Aguinaldo Highway corner Dipolog City La Nueva Supermart, Poblacion
Nueno Avenue, Imus, Cavite 4603 Minglanilla, Cebu
Trinoma 1 DIPSSCOR
Level 1 (near Landmark and Chowking) Alfamart - Trece Martires DIPSSCOR Bldg. International Port of La Nueva Supermart
North Ave. cor. Edsa, Quezon City CPC Bldg., Hugo Perez Davao, Sasa Wharf, Km10 Sasa La Nueva Supermart, Inc., G.Y. Dela
Trece Martires, Cavite Davao City Serna Street Lapu-lapu, Cebu City
Trinoma Off-premise 2
Level 1 Near X Boutique, North Avenue Alwana Business Park Divine Word College of Vigan LB Supermarket - Zamboanga
cor. EDSA, Quezon City National Highway, Barangay Cugman Burgos St., Vigan City, Ilocos Sur Veteran’s Avenue Extension
Cagayan de Oro City Zamboanga City
Two Shopping Center DLSU - Dasmariñas
Two Shopping Center, Pasay Taft Angel Supermarket College of Engineering De La Salle LCC - Penaranda
Avenue, near corner EDSA, Pasay City Luna St., corner Burgos St. University Dasmariñas, Cavite LCC Supermarket, Penaranda
Brgy. Quirino, Solano, Nueva Viscaya corner Rizal St., Legazpi City
UPM - PGH DLSU - Health Science Campus
Faculty Medical Arts Bldg. Angeles University Foundation De La Salle University Health Campus Lee Hypermarket
PGH Compound, Taft Avenue, Manila McArthur Highway Inc. Congressional Road G/F Lee Hypermarket, Valencia Road
corner San Pablo St., Angeles City Dasmariñas, Cavite Bagacay, Dumaguete City, Negros
UST - Doctor’s Clinic Oriental
UST Hospital, Vestibule and ECCO Building
New Doctor’s Clinic, Espana, Manila Araullo University G/F beside unit A, Fil-Am Friendship Lee Super Plaza
Maharlika Highway, Bitas Highway, Brgy. Anunas, Angeles City G/F Lee Super Plaza, M. Perdices
UST Hospital Cabanatuan City Pampanga cor. San Jose St., Dumaguete City
UST Hospital, Espana Street, Manila
Ateneo de Davao University Embarcadero Lim Ket Kai Mall
UST Hospital 3 near Main Entrance Ground Level, Victory Village M4-193B Lim Ket Kai Mall
G/F UST Hospital Clinic Division along Roxas Avenue, Davao City Legazpi City Cagayan de Oro City
A.H. Lacson Avenue, Sampaloc, Manila
AUP Gaisano Mall - Bajada Davao Lopue’s East Centre
Victory Central Mall Adventist University of the Philippines Gaisano Mall of Davao, J.P. Laurel Burgos St. corner Carlos Hilado
G/F ATM 2 below escalator Puting Kahoy Silang, Sta. Rosa Avenue, Bajada, Davao City National Highway, Bacolod City
#717 Old Victory Compound Cavite City
Rizal Avenue, Monumento Gaisano Mall - Bulua Lorma Hospital
Caloocan City Budget Wise Supermarket Bulua Street, Cagayan de Oro City Lorma Hospital City of San Fernando
Veterans Ave, Zamboanga City La Union
Victory Pasay Gaisano Mall - Cagayan de Oro
along Libertad corner Taft Avenue Caltex - SLEX 1 Unit # 3, 2/L, Atrium Gaisano Mall Lotus Central Mall
Pasay City South Luzon Expressway - Northbound Corrales Extension cor. C.M. Recto G/F Lotus Central Mall
Brgy. San Antonio, San Pedro, Laguna Ave., Cagayan de Oro City Nueno Avenue, Imus Cavite
Wack-Wack Golf & Country Club
Wack-Wack Golf and Country Club Camayan Resort Gaisano Mall - Iligan Mactan Marina Mall
Shaw Blvd., Mandaluyong City Camayan Beach Resort & Hotel G/F, Gaisano Citi Super Mall, Iligan City Ground Floor, Mactan Marina Mall
Camayan Wharf, West Ilanim Forest MEPZ 1, Lapu-lapu City
Waltermart - Makati Area, Subic Bay Freeport Zone Gaisano Mall - Lapu-Lapu
G/F Waltermart Makati (near Mercury Gaisano Mactan Mall, Pusok Magic Mall
Drug) 790 Chino Roces Avenue CB Mall Lapu-Lapu City, Cebu G/F cor. ITTI Shoes (Entrance B)
cor. Antonio Arnaiz, Makati City McArthur Highway, Nancayasan Magic Mall, Alexander St., Poblacion
Urdaneta City, Pangasinan Gaisano Mall - Talisay Urdaneta City, Pangasinan
Waltermart - North EDSA G/F Gaisano Fiesta Mall
Walter Mart Bldg., EDSA, Q.C. CDO Medical Center Tabunok Talisay, Cebu City Magic Starmall
CDO Medical Center Building 2 Upper G/F, Magic Star Mall, Romulo
Waltermart - Sucat Tiano cor. Nacalaban St. Galeria Victoria Boulevard, Barangay Cut-Cut 1Tarlac
Brgy. San Isidro, Dr. A. Santos Avenue Cagayan de Oro City Balanga, Bataan City
Sucat, Paranaque
Cebu Doctor’s Hospital Good Samaritan Hospital Malolos Off-branch
Zabarte Town Center Osmeña Boulevard, Cebu City Good Samaritan Compound G/F Graceland Mall, BSU Grounds
588 Camarin Road corner Zabarte Burgos Avenue, Cabanatuan City McArthur Highway, Guinhawa
Road, North Caloocan City Cebu Doctor’s University Malolos City, Bulacan
#1 Potenciano Larrazabal Ave. Holy Angel University
North Reclamation Area, Mandaue City 2G/F Holy Angel University Student’s Maria Reyna Hospital
PROVINCIAL Center Sto. Rosario St. Hospital Entrance, Ma. Reyna Hospital
Centrio Mall Angeles City Pampanga T.J. Hayes St., CDO
2 Mango Ave G/F CM Recto cor. Corrales St.
2 Mango Avenue - Solara Bldg. Cagayan de Oro Jenra Mall JENRA Grand Mall Mariton Grocery
General Maxilom Avenue Angeles City, Pampanga Buntun, Tuguegarao City
Clark Gateway Cagayan Valley
268 Mall Clark Gateway Commercial Complex Jollibee - Mabalacat
268 Mall CK Building, Plaridel Velasquez Street, San Francisco Mc Arthur Hi-way, Brgy. San Francisco Market City
Extension, Sto. Rosario, Angeles City Mabalacat, Pampanga Mabalacat City, Pampanga Market City Building, Bus Terminal
Agora, Cagayan de Oro City
Abreeza Mall Corpus Christi KCC Mall - GenSan
J.P. Laurel Avenue Corpus Christi School G/F KCC Mall - GenSan J. Catolico Sr.
Bajada, Davao City Tomas Saco Street, Macasandig Avenue, General Santos City
Cagayan de Oro City South Cotabato
CHINA BANK OFF-BRANCH ATMS
Marquee Mall 1 (Activity Center) Purisimo L. Tiam College SM City Cagayan De Oro Union Christian College
G/F Activity Center Marquee Mall PLT Building, Dumlao Boulevard ATM Center (2), Main Entrance Widdoes Street, Brgy. II
Don Bonifacio Road, Angeles City Bayombong, Nueva Vizcaya SM City Cagayan de Oro San Fernando, La Union City
Pampanga
Robinsons Calasiao SM City Clark Off-branch University of Bohol
Matina Town Square San Miguel, Calasiao, Pangasinan ATM # 1 SM City Clark, (Fronting Along Ma. Clara St., Tagbilaran City
G/F, Strip Bldg., Matina Town Center Transport Terminal) M. Roxas Street
along McArthur Highway, Matina Robinsons GenSan CSEZ, Angeles City, Pampanga University of Perpertual Help Biñan
Davao G/F Foodcourt, Jose Catolico Sr. Ave. Doctor Jose Tamayo Medical
Lagao, General Santos City SM City Dasmarinas 2 Building,University of Perpetual Help
Mindanao Sanitarium and Hospital Ground Floor, Near Gen. E. Aguinaldo Biñan Brgy. Sto. Niño, Biñan, Laguna
Tibanga Highway, Iligan City Royal Duty Free Highway Entrance, Governor’s Drive
Subic Bay, Freeport Zone Brgy. Sampalok, Dasmariñas, Cavite University of San Carlos
MJS Hospital Zambales City University of San Carlos
Montilla Boulevard, Butuan City SM City General Santos Main University Building
Samulco corner Santiago Blvd. & P. del Rosario Street, Cebu City
Nepo Mall - Angeles Sta Ana Multi Purpose Cooperative, San Miguel St., Brgy. Lagao,
Dona Teresa Ave., cor. St. Joseph St. Bldg. 1, Monteverde St., Davao City General Santos City, South Cotabato Waltermart - Calamba
Nepo Mart Complex, Angeles City Real St., Brgy. Real, Calamba, Laguna
San Fernandino Hospital SM City Lipa Off-branch
Nepo Mall - Dagupan along McArthur Highway, Dolores ATM 2 (near Transport Terminal) Waltermart - Carmona Macaria
G/F, Arellano St., Dagupan City City of San Fernando, Pampanga SM City Lipa, Ayala Highway, Lipa City Business Center, Governor’s Drive
Mabuhay, Carmona, Cavite
Notre Dame de Chartres Hospital Savewise - Pozorrubio SM City Tarlac
Notre Dame de Chartres Hospital Caballero St., Brgy. Cablong G/F, McArthur Highway, San Roque Waltermart - Dasmarinas
No. 25 General Luna Road, Baguio City Pozorrubio, Pangasinan Tarlac City G/F, Barrio Burol Aguinaldo Highway
Dasmariñas, Cavite
Nueva Ecija Doctors Hospital Shopwise - Cebu SM Davao
Nueva Ecija Doctors Hospital, N. Bacalso Ave., Basak ATM Center (1), SM City Davao Waltermart - Gen. Trias Governor’s
Maharlika Highway, Cabanatuan City San Nicolas, Cebu City Quimpo Boulevard Drive, Gen. Trias, Cavite
Ecoland Subdivision
Orchard Golf and Country Club Shopwise - San Pedro Barangay Matina, Davao City Waltermart - San Fernando
Gate 2, The Orchard Golf and Country along National Highway Brgy. San Agustin, McArthur Highway,
Club Inc., Aguinaldo Highway, Brgy. Landayan, Pacita, San Pedro SM Lanang Premier Off-branch San Fernando, Pampanga
Dasmariñas, Cavite Upper Ground Floor
Skyrise Realty J.P. Laurel Avenue, Brgy. San Antonio, Waltermart - Sta. Rosa 1
OSPA - FMC Skyrise Realty Development Agdao District, Davao City Upper G/F Waltermart Center -
Ormoc Sugarcane Planters Association Corporation front G/F Skyrise IT Sta. Rosa National Highway Mall
- Farmers Medical Center, Ormoc City Building, Gorordo Avenue SM Marilao Off-premise Entrance San Lorenzo Village
Leyte cor. N. Escario St., Cebu City ATM-1 SM City Marilao,Marilao, Balibago Road, Sta. Rosa, Laguna
Bulacan
Our Lady of the Pillar SM Baguio Waltermart - Sta. Rosa 2
G/F near Emergency Room SM Baguio Luneta Hill, Upper Session SM Market Mall Upper G/F Waltermart Center -
Tamsui Avenue, Bayan Luma Road cor. Governor Park Road Congressional Avenue, Dasmariñas Sta. Rosa between Goldilocks and
Imus, Cavite Baguio City, Benguet Bagong Bayan, Dasmarinas, Cavite Mall Exit San Lorenzo Village
Balibago Road, Sta. Rosa, Laguna
Pacific Mall SM Baliwag SM Supercenter Molino Off-branch
Landco Business Park ATM2, DRT Highway, Brgy. Pagala G/F SM Supercenter Molino, SCMC Waltermart - Tanauan
F. Imperial Street Baliwag, Bulacan Brgy. Molino 4, Molino Road J. P. Laurel National Highway
cor. Circumferential Road Legaspi City Bacoor, Cavite Brgy. Darasa, Tanauan, Batangas
SM Calamba 1
Pacific Mall 2 Ground Floor, National Road Socsargen County Hospital Wesleyan University
Pacific Mall Building Brgy. Real, Calamba City, Laguna Socsargen County Hospital Wesleyan University of the Philippines
Landco Business Park Bula-Lagao Road cor. L. Arradaza St. Mabini Extension, Cabanatuan City
F. Imperial St., Legazpi City SM Calamba 2 General Santos City
Second Floor, National Road Xavier University
Pangasinan Medical Center Brgy. Real, Calamba City, Laguna Southway Mall G/F Library Annex, Xavier University
Nable St., Dagupan City Southway Square Mall cor. Gov. Lim Corrales Ave., Cagayan De Oro City
SM Calamba 3 Purisima and Magno Sts.
Pavilion Mall near Main Entrance, National Road Zamboanga City Yubenco Starmall
G/F Building A, Pavilion Mall Brgy. Real, Calamba City, Laguna MCLL Highway, Putik, Zamboanga City
Km. 35 Brgy. San Antonio Sta. Rosa Hospital
Biñan, Laguna SM City Bacolod RSBS Blvd., Balibago Zamboanga Peninsula
G/F Building A, ATM # 3, SM City City of Sta Rosa, Laguna Zamboanga Peninsula Hospital
Porta Vaga Mall Bacolod Reclamation Area, MCLL Putik Highway, Putik
Along Session Road, Baguio City Bacolod City Target Mall 1 Zamboanga City
G/F near Star Search Sta. Rosa
Prince Mall of Baybay SM City Batangas Commercial Complex, Brgy. Balibago
Andres Bonifacio & ATM-1 SM City Batangas Sta. Rosa, Laguna
Manuel L. Quezon St. Pallocan West, Batangas City
Baybay, Leyte Target Mall 2
SM City Batangas 2 ATM-04, Canopy Area Sta. Rosa
Puregold - Dau SM Batangas Covered walk - Covered Commercial Complex, Brgy. Balibago
Cosco Bldg, McArthur Highway walk SM City Batangas Pallocan West, Sta. Rosa, Laguna
Dau, Mabalacat, Pampanga Batangas City
The District Mall
Aguinaldo Hi-way cor Daang Hari Road
Brgy. Anabu II-D, Imus Cavite
CHINA BANK BUSINESS CENTERS 181
CONSUMER BANKING CENTERS
CBG BACOLOD CENTER CBG CAGAYAN DE ORO CENTER CBG DAVAO CENTER
China Bank - Bacolod Araneta China Bank - Cagayan de Oro-Lapasan Branch China Bank - Davao-Recto Branch
CBC Bldg., Araneta corner 2/F CBC Bldg. C.M. Recto Avenue 2/F CBC Bldg. C.M. Recto
San Sebastian Streets, Bacolod City Lapasan, Cagayan de Oro corner J. Rizal Streets, Davao City
Tel. No.: (034) 433-0647 Tel. No.: (08822) 72-81-95 Tel. Nos.: (082) 226-2103/ (082) 221-4163
Fax No.: (034) 433-0250 Fax No.: (088) 856-2409 (082) 222-5761
Email: jmedelasalas@chinabank.ph Email: rdmatela@chinabank.ph Fax No.: (082) 222-5021
Center Head: Jasmin Mae E. De Las Alas Center Head: Rhea D. Matela Email: rcsanchez@chinabank.ph
Center Head: Renato C. Sanchez II
CBG BATANGAS CENTER CBG CEBU CENTER
China Bank - Batangas City Branch China Bank - Cebu-Banilad Branch CBG ILOILO CENTER
2/F CBC Bldg., P. Burgos Street 2/F CBC Bldg. A.S. Fortuna Street China Bank - Iloilo-Rizal Branch
Batangas City Banilad, Cebu City 2/F CBC Bldg. Rizal corner Gomez Streets
Tel. No.: (043) 723-7127 Tel. Nos.: (032) 416-1606; (032) 346-4448 Brgy. Ortiz, Iloilo City
Fax No.: (02) 520-6161 Fax No.: (032) 346-4450 Tel. No.: (033) 336-7918
Email: egricardo@chinabank.ph Email: jfvparaon@chinabank.ph (033) 503-2845
Center Head: Evelyn G. Ricardo Center Head: James Frances V. Paraon Fax No.: (033) 336-7909
Email: mdcelajes@chinabank.ph
CBG CABANATUAN CENTER CBG DAGUPAN CENTER Center Head: Marvin D. Celajes
China Bank – Cabanatuan, Maharlika Branch China Bank - Dagupan-Perez Branch
2/F CBC Bldg., Brgy. Dicarma, Maharlika Highway Siapno Bldg., Perez Boulevard CBG PAMPANGA CENTER
Cabanatuan City, 3100 Nueva Ecija Dagupan City China Bank - San Fernando Branch
Tel. No.: (044) 463-1063 / 600-1575 Tel. No.: (075) 522-8471 2/F CBC Bldg. V. Tiomico Street
Fax No.: (044) 464-0099 Fax No.: (075) 522-8472 Sto. Rosario Poblacion, City of San Fernando
Email: aacvilar@chinabank.ph Pampanga
Center Head: Anthony C. Vilar Tel. Nos.: (045) 961-5344; (045) 961-0467
(045) 961-8351
Fax No.: (045) 961-8351
Email: vgguintu@chinabank.ph
Center Head: Verna G. Guintu
PRIVATE BANKING GROUP MAKATI
15/F China Bank Building, 8745 Paseo de Roxas Therese G. Escolin Karen W. Tua
corner Villar Street, Makati City, Philippines (02) 885-5693 (02) 885-5643
tgescolin@chinabank.ph kwtua@chinabank.ph
Angela D. Cruz
(02) 885-5641 Grace C. Santos Yvette O. Chua
adcruz@chinabank.ph (02) 885-5697 (02) 885-5691
gcsantos@chinabank.ph yochua@chinabank.ph
Cesare Edwin M. Garcia
(02) 812-5320 Eric Von D. Baviera
cemgarcia@chinabank.ph (02) 885-5688
evdbaviera@chinabank.ph
PRIVATE BANKING OFFSITE OFFICES
GREENHILLS OFFICE KALOOKAN OFFICE SAN FERNANDO OFFICE

14 Ortigas Avenue, Greenhills 167 Rizal Avenue Extension, Caloocan City 2/F V. Tiomico St., San Fernando City, Pampanga
San Juan, Metro Manila
Jennifer Y. Macariola Ma. Cristina D. Puno
Ma. Victoria G. Pantaleon (02) 366-8669 (045) 961-0486 / mdpuno@chinabank.ph
(02) 7277884 jymacariola@chinabank.ph
mvgpantaleon@chinabank.ph CEBU OFFICE
Sheryl Ann C. Hokia CBC Building, Samar Loop cor. Panay Road
Glynn Hazel C. Yap (02) 352-3789 Cebu Business Park, Cebu City
(02) 727-7645 sachokia@chinabank.ph
ghcyap@chinabank.ph Eleanor D. Rosales
QUEZON CITY OFFICE (032) 415-5881; (032) 239-3740 up to 43
Dianne Mae A. Cardenas 82 West Avenue, Quezon City edrosales@chinabank.ph
(02) 724-0413
dmacardenas@chinabank.ph Jaydee Cheng-Tan Kristian Caesar P. Ditan
(02) 426-6980 (032) 415-5881; (032) 239-3741
Cathryn D. Marzan jctan@chinabank.ph kpditan@chinabank.ph
(02) 731-5554
cdmarzan@chinabank.ph ALABANG OFFICE Rosemarie T. Guingona
G/F CBC Building Acacia Ave. (032) 415-5881; (032) 239-3742
BINONDO OFFICE Madrigal Business Park, Ayala Alabang rtguingona@chinabank.ph
6/F ChinaBank, Dasmarinas Muntinlupa City
corner Juan Luna, Binondo, Manila DAVAO OFFICE
Sheila V. Sarmenta-Dayao Km. 4 McArthur Highway, Matina, Davao City
Irene C. Tanlimco (02) 659-2463
(02) 241-1452 svsarmenta-dayao@chinabank.ph Mc Queen Benigno-Jamora
ictanlimco@chinabank.ph (082) 297-6268
Dennis G. Dee mqbjamora@chinabank.ph
Genelin U. Yu (02) 552-1682
(02) 247-8341 dgdee@chinabank.ph
guyu@chinabank.ph
VGP Center, 6772 Ayala Avenue

Tel. No.: (632) 988-9555
www.cbs.com.ph
China Bank Savings, Inc. (CBS) began operations on September 8, 2008, following China Bank’s acquisition of Manila Bank in 2007. China Bank
now owns 98% of CBS. To fast-track CBS’ expansion, China Bank acquired Pampanga-based rural bank, Unity Bank (already merged with CBS),
in 2012, and Planters Development Bank (Plantersbank) in 2014 (to be merged with CBS in 2015). CBS now has a bigger, better, and stronger
banking franchise to serve the needs of retail customers and small- to medium- scale businesses. It aims to operate and grow as a profitable
community-oriented institution, offering value-enhancing, customer-driven solutions at very accessible locations, including supermarkets, and
through secure and convenient electronic banking channels.
BOARD OF DIRECTORS
CHAIRMAN DIRECTORS INDEPENDENT DIRECTORS CORPORATE SECRETARY

Ricardo R. Chua Ramon R. Zamora Alberto S. Yao Edgar D. Dumlao
Antonio S. Espedido, Jr. Roberto F. Kuan
VICE CHAIRMAN Rene J. Sarmiento Margarita L. San Juan ASSISTANT CORPORATE
Nancy D. Yang Alberto Emilio V. Ramos SECRETARY
Alexander C. Escucha Bea Carla C. Redoblado
Rosemarie C. Gan
BOARD-LEVEL COMMITTEES
EXECUTIVE COMMITTEE RISK MANAGEMENT COMMITTEE AUDIT COMMITTEE
Chairman Ricardo R. Chua Roberto F. Kuan Roberto F. Kuan
Vice Chairman Nancy D. Yang
Members Alberto Emilio V. Ramos Margarita L. San Juan Margarita L. San Juan
Rosemarie C. Gan Nancy D. Yang Alberto S. Yao
Margarita L. San Juan Ramon R. Zamora
Alexander C. Escucha
CORPORATE GOVERNANCE
COMPENSATION/
COMMITTEE / NOMINATION AND TRUST COMMITTEE
REMUNERATION COMMITTEE
PERSONNEL COMMITTEE
Chairman Alberto S. Yao Antonio S. Espedido, Jr. Ricardo R. Chua
Members Ricardo R. Chua Alexander C. Escucha Alberto Emilio V. Ramos
Roberto F. Kuan Anna Maria P. Ylagan Maria Rosanna L. Testa
Antonio S. Espedido, Jr. Alberto Emilio V. Ramos
Alexander C. Escucha Ramon R. Zamora
MANAGEMENT-LEVEL COMMITTEES
MANAGEMENT COMMITTEE IT STEERING COMMITTEE CREDIT COMMITTEE
Chairman Alberto Emilio V. Ramos Alberto Emilio V. Ramos Alberto Emilio V. Ramos
Vice Chairman Jaime Valentin L. Araneta Jaime Valentin L. Araneta Jaime Valentin L. Araneta
Members Emmanuel C. Geronimo Emmanuel C. Geronimo Jezreel R. Pimentel
James Christian T. Dee Edralin G. Agbayani Edralin G. Agbayani
Ma. Edralin G. Agbayani Rosalinda T. Munsayac Ma. Consuelo S. Ruffy**
Anna Maria P. Ylagan Ma. Consuelo S. Ruffy Jan Nikolai M. Lim**
Ma. Consuelo S. Ruffy Jan Nikolai M. Lim Jose Ramon O. Santamaria**
Jan Nikolai M. Lim Jose Ramon O. Santamaria Consolacion R. Saur*
Jose Ramon O. Santamaria
Non-Voting Members
Rosalinda T. Munsayac
Maria Consuelo A. Babas Restituto B. Bayudan
Consolacion R. Saur* Consolacion R. Saur*
* Adviser Consultant
** Participation limited to their specific business area only
CHINA BANK SAVINGS 183
ASSET LIABILITY MANAGEMENT ANTI-MONEY LAUNDERING

RETIREMENT COMMITTEE
COMMITTEE COMMITTEE
Chairman Alberto Emilio V. Ramos Rex P. Bautista
Vice Chairman Jaime Valentin L. Araneta
Members Emmanuel C. Geronimo Ricardo R. Chua Jaime Valentin L. Araneta
Ma. Consuelo S. Ruffy Alberto Emilio V. Ramos Edgar D. Dumlao
Jan Nikolai M. Lim Antonio S. Espedido, Jr. Rosalinda T. Munsayac
Jose Ramon O. Santamaria
James Christian T. Dee
Edralin G. Agbayani
Consolacion R. Saur*
* Adviser Consultant
OPERATIONS COMMITTEE COLLECTIONS COMMITTEE PRICING COMMITTEE (AUTO) FRAUD COMMITTEE

Chairman Jaime Valentin L. Araneta Alberto Emilio V. Ramos Alberto Emilio V. Ramos Raymond C. Apo
Vice Chairman Rosalinda T. Munsayac Jaime Valentin L. Araneta
Members Emmanuel C. Geronimo Jan Nikolai M. Lim Jose Ramon O. Santamaria Atty. Edgar D. Dumlao
Moises S. Santos Jose Ramon O. Sta. Maria Atty. Edgar D. Dumlao Rosalinda T. Munsayac
Raymond C. Apo Emmanuel C. Geronimo Edralin G. Agbayani Edralin G. Agbayani
Rex P. Bautista Raymond C. Apo Emmanuel M. Gomez
Ex-Officio Member
Jaime Valentin L. Araneta
OFFICERS
PRESIDENT FIRST VICE PRESIDENTS VICE PRESIDENTS ASSISTANT VICE PRESIDENTS
Alberto Emilio V. Ramos*** Jeffrey D. Bognot** Allan E. Borreo** Raymond C. Apo**

Branch Sales Group Head Corporate Planning Head Risk Officer
EXECUTIVE VICE PRESIDENT Roberto F. Banaag** Victoria T. Alfonso** Maribel M. Dimayuga**

Marketing Communications Human Resources Head Compliance Officer
Jaime Valentin L. Araneta** Services Head
Operations Head Maria Rosanna L. Testa* Baldwin A. Aguilar*
Luis Bernardo A. Puhawan** Human Resources Group Head General Services Head
Controllership Group Head
SENIOR VICE PRESIDENTS Joseph LT Reyes Hanz Irvin S. Yoro*
Adonis C. Yap** Internal Auditor Information Security Officer
Liberty S. Basilio** Special Banking Services Head
SME Lending Group Head Anna Maria P. Ylagan Henry C. Perez**
Alesandra E. Tiaoqui** Trust Officer Security Officer
Gary A. Vargas ** Credit Management Group Head
Consumer Lending Group Head Edgar D. Dumlao**
Eleanor R. Recana** Corporate Secretary DEPUTY SENIOR MANAGER
Jose F. Acetre** Information Technology Head
Collections & Assets Recovery James Christian T. Dee*** Ma. Teresa E. Santos**
Group Head Odel S. Janda** Treasurer Manager and Customer
Legal Department Head Experience Management Head
* with interlocking position at China Bank

** with interlocking position at Plantersbank
*** with interlocking positions at Plantersbank and China Bank
METRO MANILA LAS PINAS - ALAMANZA UNO SAVEMORE ANONAS SM HYPERMARKET FTI - TAGUIG
Alabang Zapote Road, Almanza Uno Maamo St. Road Lot 30, V. Luna St. DBP Avenue Western Bicutan
ALABANG HILLS Las Piñas City corner Anonas extension Food Terminal Incorporated
G/F Alabang Comm’l Citi Arcade Tel. Nos.: (02) 966-9001; 551-4724 Sikatuna Village, Quezon City Western Bicutan - Taguig
Don Jesus Blvd., Alabang Fax No: (02) 551-4051 Tel. No.: (02) 351-4928 Tel. No.: (02) 507-4090
Muntinlupa City Eleanor Montemayor Fax No: (02) 351-4929 Mary Ann Tenedero
Tel. No.: (02) 403-2801 Vishia Prima Baoayan
Telefax: (02) 828-4854 MAKATI - J.P RIZAL TWO E-COM CENTER
Quennie V. Umil 882 J.P Rizal St., Poblacion, Makati City SAVEMORE ARANETA CENTER COD Two E-Com Center Tower B
Tel. Nos.: (02) 890-1027; 890-1026 Gen. Romulo St., Araneta Center Ocean Drive near corner Bayshore
AYALA Fax No: (02) 890-1027 Cubao, Quezon City Avenue, Mall of Asia Complex
6772 Ayala Avenue, Makati City Amapola A. Guina Tel. Nos.: (02) 502-1437; 921-3147 Pasay City
Tel. No.: (02) 864-5011/ 864-5017 Fax No: (02) 921-3149 Tel. No.: (02) 587-4753
(02) 864-5065 MANDALUYONG - SHAW Michelle Ann Borjal Andrew Martin Sanchez
Fax No: (02) 810-9226 BOULEVARD
Lani D. Larion 500 Shaw Tower 500 Shaw Boulevard SAVEMORE AVENIDA VALENZUELA
Mandaluyong City Jennet and Lord Theater, Rizal Avenue 385 McArthur Highway
BETTER LIVING Tel. Nos.: (02) 941-9412; 941-9231 Sta. Cruz, Manila Malinta, Valenzuela City
90 Doña Soledad Avenue Stephanie Villanueva Tel. No.: (02) 734-0534 Tel. Nos.: (02) 709-4641; 709-4642
Better Living Subdivision, Parañaque Fax No: (02) 734-0543 Fax No: (02) 709-4644
Tel. No.: (02) 507-4116 MARIKINA Michael Calderon Jobel Araña
Dimples Dacio 33 Bayan-Bayanan Ave.
Bgy. Concepcion 1 Marikina City SAVEMORE JACKMAN NORTH LUZON
BF HOMES Tel. Nos.: (02) 934-6037; 477-2445 Lower G/F, Jackman Plaza
284 Aguirre Avenue Fax No: (02) 477-2443 Edsa-Muñoz, Quezon City ANGELES
B.F Homes, Parañaque Bernard San Jose Tel. No.: (02) 442-6282 Miranda Ext., corner Asuncion St.
Tel. Nos.: (02) 964-1292; 553-5414 Fax No: (02) 442-4829 Angeles City
Fax No: (02) 553-5412 MCKINLEY HILL Mark John Yalung Tel. No.: (045) 458-0298
Maria Dolores Regala U-B Commerce & Industry Plaza Fax No: (045) 458-0297
McKinley Towncenter, Fort Bonifacio SAVEMORE MALABON - FRANCIS Maria Beata Larin
BINONDO - JUAN LUNA Taguig City MARKET
694-696 Juan Luna Street Tel. Nos.: (02) 403-0425; 798-0357 Governor Pascual ARAYAT
Binondo, Manila Fax No: (02) 403-9413 corner M.H del Pilar St., Malabon Cacutud, Arayat, Pampanga
Tel. Nos.: (02) 964-1327; 254-7337 Oleeve Lim Tel. No.: (02) 931-6326 Tel. No.: (045) 885-2390
254-0371 Fax No: (02) 931-6323 Fax No: (045) 409-9559
Fax No: (02) 254-0371 ORTIGAS Sheline H. De Jesus Ma. Rowena Cura
Erlinda Sia Ground Floor, Hanston Square
San Miguel Avenue, Ortigas Center SAVEMORE NEPA - Q - MART BAGUIO
CHINO ROCES Pasig City G/F & 2/F, 770 St. Rose Bldg. Upper G/F KDC Building
2176 Chino Roces Avenue, Makati City Tel. No.: (02) 654-1912 EDSA and K-G, St., West Kamias 91 Marcos Highway, Baguio City
Tel. Nos.: (02) 831-0477; 964-1322 Fax No: (02) 477-3439 Quezon City Tel. Nos.: (074) 424-1245; 424-6415
Fax No. (02) 831-0786 Domingo Ortiz Tel. Nos.: (02) 351-4883; 502-7135 424-6084
Cristina Sanchez Fax No: (02) 351-4884 Fax No: (074) 424-6414
PASIG - PADRE BURGOS Kym-berlee S. Alcazar Demetrio Madayag, Jr.
FILINVEST CORPORATE CITY 114 Padre Burgos St.
BC Group Bldg., East Asia Drive Kapasigan, Pasig City SAVEMORE NOVA PLAZA MALL BALANGA
near corner Commerce Ave. Tel. Nos.: (02) 650-3362; 650-3356 Novaliches Plaza Mall, Quirino Highway Capitol Drive, Balanga City, Bataan
Filinvest Corporate City Fax No: (02) 650-3354 cor. Ramirez St., Novaliches Proper Tel. No.: (047) 237-4138
Alabang, Muntinlupa City Rolando Ordoño Quezon City Fax No: (047) 237-3828
Tel. Nos.: (02) 511-1152; 217-3069 Tel. No.: (02) 983-1512 Susan Songco
Fax No: 511-1145 PATEROS Fax No: (02) 983-1511
Marites B. Nubla 500 Elisco Rd., Sto. Rosario Joevin C. Villarin DAGUPAN
Pateros City G/F Lyceum-Northwestern University
GREENHILLS - WILSON Tel. Nos.: (02) 738-3529; 641-8537 SAVEMORE PEDRO GIL Tapuac District, Dagupan City
219 Wilson St., Greenhills Fax No: (02) 641-9556 Pedro Gil cor Singalong Sts., Manila Tel. Nos.: (075) 523-3637; 515-8278
San Juan City Clarinda S. Batenga Tel. No.: (02) 354-3117 Fax No: (075) 523-2568
Tel. Nos.: (02) 748-7625; 584-5946 Fax No: (02) 521-4056 Gingin Aquino
Fax No: (02) 584-5947 QUEZON AVENUE Ivory Faith Fausto
Josephine Joy T. Rillera G/F GJ Bldg., 385 Quezon Ave. DAU
Quezon City SAVEMORE TAFT - MASAGANA MacArthur Highway, Dau
KALOOKAN Tel. Nos.: (02) 332-2638; 332-2639 Parkview Plaza, Trida bldg. Mabalacat, Pampanga
Augusto Bldg., Rizal Ave. 966-7493 Taft Avenue corner T.M. Kalaw St. Tel. Nos.: (045) 624-0167; 892-2216
Gracepark, Kalookan City Fax No: (02) 332-2639 Ermita, Manila Fax No: (045) 892-2215
Tel. No.: (02) 365-7593 Michelle Marie Fornesa Tel. Nos.: (02) 554-0617; 554-0697 Ronnie Pineda
Fax No: (02) 363-2752 Roland Allan C. Isidro
Ronaldo Centeno SAN JUAN GUAGUA
Madison Square, 264 N. Domingo St. SAVEMORE TAGUIG - ACACIA Plaza Burgos, Guagua, Pampanga
LA HUERTA Barangay Pasadena, San Juan ESTATES Tel. Nos.: (045) 901-0641; 901-0966
1070 Quirino Avenue Tel. No.: (02) 507-4147 Acacia Taguig, Town Center Fax No: (045) 901-0640
La Huerta, Parañaque City Jeannette Mae Castillo Acacia Estates, Barangay Ususan Betty Bacani
Tel. Nos.: (02) 893-1226 or 893-1227 Taguig City
Marilet Valerio SAVEMORE AMANG RODRIGUEZ Tel. No.: (02) 964-1318 MACABEBE
Amang Rodriguez Ave. Susan C. Pascua Poblacion, Macabebe, Pampanga
LAS PIÑAS cor. Evangelista St., Brgy. Santolan Tel. Nos.: (045) 921- 0594; 434-0258
G/F Parco Supermarket Pasig City SM HYPERMARKET ADRIATICO Fax No: (045) 921-0594
J. Aguilar Ave., Las Piñas City Tel. Nos.: (02) 964-1323; 654-0564 Adriatico St., Malate, Manila Christopher Benitez
Tel. Nos.: (02) 548-0368; 474-6842 Fax No: (02) 645-4710 Tel. Nos.: (02) 525-6282; 525-6286
Fax No: (02) 548-0367 Shane Michelle Gueco Fax No. (02) 525-6286
Geraldine Diwa January Anne Tapeño
CHINA BANK SAVINGS BRANCHES 185
MALOLOS SANTIAGO DARAGA VISAYAS

Canlapan Street, Sto. Rosario City Road Centro East Rizal St., Brgy. San Roque
Malolos City, Bulacan Santiago City, Isabela Daraga, Albay, Bicol BACOLOD
Tel. No.: (044) 794-2830 Tel. Nos.: (078) 258-0017; 305-0580 Tel. Nos.: (052) 204-0024; 483-0706 SKT Saturn Bldg., Lacson
Fax No: (044) 794-2793 Fax No: (078) 305-0532 Fax No: (052) 483-0706 cor. Rizal Sts., Bacolod City
Rosanna Martinez Elizabeth Chua Aireen Alocillo Tel. Nos.: (034) 435-7143; 435-6983
Fax No: (034) 708-2041
OLONGAPO STA. ANA FILOIL TANAUAN - SUPLANG Ronnie Vinco, Jr.
GF City View Hotel 25 Magsaysay Poblacion, Sta. Ana, Pampanga FilOil Gas Station, Brgy. Suplang
Drive, New Asinan, Olongapo City Tel. No.: (045) 409-0335 Tanauan, Batangas CEBU - LAHUG
Tel. No.: (047) 222-2504 Fax No: (045) 409-9818 Tel. No.: (043) 502-7144 G/F Skyrise IT Bldg., Bgy. Apas
Fax No: (047) 222-1891 Lita Lopez Janrynel Gonzales Lahug, Cebu City
Ruth Caruncho Tel. Nos.: (032) 236-0810; 236-0869
STA. RITA IMUS Fax No: (032) 236-0809
ORANI San Vicente, Sta. Rita, Pampanga Gen. Emilio Aguinaldo Highway Mark Ryan Sy
Brgy. Balut,Orani,Bataan Tel. No.: (045) 434-0131 Anabu II, Imus, Cavite
Tel. No.: (047) 638-1281 Fax No: (045) 900-0658 Tel. Nos.: (046) 471-0177; 471-0179 CEBU - MANDAUE
Fax No: (047) 638-1282 Gloria Cunanan Fax No: (046) 471-0178 A. Del Rosario Ave., Mantuyong
Elsie Dimalanta Rosewedi Baltero - Cruz Mandaue City, Cebu
SUBIC Tel. Nos.: (032) 520-2780; 422-8019
PORAC Baraca,Subic, Zambales LAGUNA - STA. CRUZ Fax No: (032) 520-2770
Cangatba, Porac, Pampanga Tel. No.: (047) 232-6104 E & E Building Kristine Marie Diores
Tel. Nos.: (045) 329-3188 Fax No: (047) 232-6105 Pedro Guevarra Avenue
Fax No: (045) 329-3177 Cheryl Comandante Sta. Cruz, Laguna ILOILO - JARO
Mariano Garcia, Jr. Tel. No. (049) 3047-0047 Lopez Jaena corner EL 98 Streets
TARLAC Lesly Amparo Jaro, Iloilo City
SAN FERNANDO RIC Bldg. Bypass Road Tel. No.: (033) 320-0426
KHY Trading Bldg., San Fernando- San Sebastian, Tarlac City LIPA Fax No: (033) 320-0370
Gapan Rd., San Fernando City Tel. Nos.: (045) 628-0761; 628-0755 G/F Tibayan Bldg., 1705 CM Recto Ave. Wilfred Gonzalo
Pampanga Fax No: (045) 628-0754 cor. Rizal St., Lipa City
Tel. Nos.: (045) 286-6811; 961-1416 Everett Lim Tel. Nos.: (043) 757-5107; 981-3602 ILOILO - QUEZON
Fax No: (045) 961-1415 Fax No: (043) 757-5253 Ground Floor, 132 Quezon St.
Mary Ann Jaquelyn Tiongson TAYTAY Rolando Castillo Iloilo City
C Gonzaga Building 2 Tel. No.: (033) 321-0940
SAN FERNANDO - BAYAN Manila East Road, Taytay, Rizal MOLINO Fax No: (033) 335-0213
V. Tiomico St., City of San Fernando Tel. Nos.: (02) 650-3367: 623-6113 817 Molino Road, Molino 3 John Michael Denate
Pampanga Fax No: (02) 650-3368 Bacoor, Cavite
Tel. Nos.: (045) 961-2455; 961-3246 Mary Joy Surla Tel. No.: (046) 235-7542 SAVEMORE TALISAY - NEGROS
(045) 861-0894 Mary G. Tan Talisay,Mabini St., Zone 12 Paseo
(045) 961-2328 loc. 115 SOUTH LUZON Mabini Talisay City, Negros Occidental
Editha Gomez NAGA Tel. No.: (034) 441-6264
CAVITE CITY RL Building, Panganiban St. Fax No: (034) 441-6267
SAN ILDEFONSO 485 P. Burgos St., Brgy. 34 Lerma, Naga City Irene Bermudez
Rose Vic Bldg., Cagayan Valley Road Caridad, Cavite City Tel. No.: (054) 472-1947
Poblacion San Ildefonso, Bulacan TEl. No. (046) 235-7537 Fax No: (054) 472-5424 MINDANAO
Tel. Nos.: (044) 762-1075; 677-1610 Alaine Catapang Timoteo De Villa Jr.
Fax No: (044) 762-1190 CAGAYAN DE ORO
Ledwina Villafuerte BACOOR SAN PABLO Sergio Osmeña St., Cogon District
FRC Mall, Gen. Evangelista St. P. Zamora St. Brgy. VII - B Cagayan de Oro City
SAN JOSE Talaba V, Bacoor, Cavite San Pablo City Tel. Nos.: (088) 852-2006; 323-1507
Sto. Rosario St., San Jose, Angeles City Tel. No.: (046) 417-4504 Tel. No.: (049) 503-2890 Fax No: (088) 323-1508
Tel. No.: (045) 888-2048; 409-0234 Fax No: (046) 417-4710 Grace Asuncion Averion Ma. Socorro Cosme
Fax No: (045) 887-6433 May Tan
Justine Jeovail Millo SAN PEDRO DAVAO
BATANGAS Gen - Ber Bldg. National Highway G/F 8990 Corporate Center
SAN JOSE DEL MONTE Miriel’s Place, National Road Landayan, San Pedro Laguna Quirino Ave., Davao City
Ground Floor, Giron Building Pallocan West, Batangas City Tel. No.: 869-8220 local 4836/ 4837 Tel. Nos.: (082) 321-0273; 321-0274
Gov. Halili Avenue, Tungkong Mangga Tel. No.: (043) 980-0544 Fax No: 847-0585 Fax No: (082) 221-3873
City of San Jose Del Monte, Bulacan Fax No: (043) 980-0545 Ronald De Guzman Liza Ricabo
Tel. No.: (044) 815-8396 Edwin Guevara
Fax No: (044) 815-6616 CABANATUAN SAVEMORE TAGAYTAY - MENDEZ ZAMBOANGA
Othello Mendoza Km. 115 Cagayan Valley Rd. Mendez Crossing West, Tagaytay- Nuñez Extension, Camino Nuevo
Maharlika Highway near cor. Sanciangco Nasugbu Highway corner Mendez - Zamboanga City
SAN NARCISO St., Cabanatuan City Tagaytay Road, Tagaytay City Tel. No.: (062) 955-0563
Brgy. Libertad Tel. Nos.: (044) 940-6942; 940-6944 Tel. Nos.: (046) 413-3871 Fax No: (062) 310-0900
San Narciso, Zambales Fax No: (044) 940-6943 Fax No: (046) 413- 3872 Jennifer Marie De Leon
Tel. Nos.: (047) 913-2288; 913-2245 Ma. Theresa Padiernos Jenilyn Chua
Fax No: (047) 913-2245
Johnest Monsalud CALAMBA STA. ROSA
HK Bldg II, National Highway Lot 2 Block 5 Phase 2A
SAN RAFAEL Brgy. Halang, Calamba, Laguna Avida Commercial, Sta. Rosa-Tagaytay
Cagayan Valley cor. Cruz na Daan Tel. No.: (049) 306-0238 Road, Barangay Sto. Domingo
Roads,San Rafael,Bulacan Fax No: (049) 306-0234 Sta. Rosa, Laguna
Tel. No.: (044) 815-8915 Eva Limbo Tel. No.: (049) 502-9112
Fax No: (044) 815-8915 Fax No: (049) 502-9134
Nancy Santiago Amor Cajucom
Plantersbank Building
314 Sen. Gil Puyat Avenue Makati City
Tel. No. : (632) 884-7600; 884-7800
E-mail : info@plantersbank.com.ph
Customer Relations: customerrelations@plantersbank.com.ph
www.plantersbank.com.ph
Planters Development Bank (Plantersbank) is the newest member of the China Bank Group, following the approval in principle of the
Monetary Board of the Bangko Sentral ng Pilipinas (BSP) on December 13, 2013. China Bank now owns 99.85% of Plantersbank’s capital
stock. Integration activities have commenced to merge Plantersbank with CBS to build a stronger platform for SME Finance.
Plantersbank is a development-oriented finance institution nationally acclaimed as the country’s lead bank for small and medium
enterprises (SMEs).
BOARD OF DIRECTORS
CHAIRMAN DIRECTORS INDEPENDENT DIRECTORS CORPORATE SECRETARY

Amb. Jesus P. Tambunting Nancy D. Yang Antonio S. Espedido, Jr. Roberto F. Kuan Edgar D. Dumlao
Alberto Emilio V. Ramos Ramon R. Zamora Alberto S. Yao
VICE CHAIRMAN Alexander C. Escucha Carlos M. Borromeo Margarita L. San Juan ASSISTANT CORPORATE
Ricardo R. Chua SECRETARY
Odel S. Janda
BOARD-LEVEL COMMITTEES
NOMINATION AND
EXECUTIVE COMMITTEE RISK OVERSIGHT COMMITTEE
COMPENSATION COMMITTEE
Chairman Ricardo R. Chua Ricardo R. Chua Alberto S. Yao
Vice Chairman Nancy D. Yang
Members Alberto Emilio V. Ramos Carlos M. Borromeo Nancy D. Yang
Carlos M. Borromeo Alberto Emilio V. Ramos Ramon R. Zamora
Antonio S. Espedido, Jr. Victoria T. Alfonso Alexander C. Escucha
Maria Rosanna L. Testa
CORPORATE GOVERNANCE TRUST AND INVESTMENT

AUDIT COMMITTEE
COMMITTEE COMMITTEE
Chairman Roberto F. Kuan Alberto S. Yao
Vice Chairman
Members Margarita L. San Juan Ricardo R. Chua Alexander C. Escucha
Alberto S. Yao Roberto F. Kuan Carlos M. Borromeo
Antonio S. Espedido, Jr. Ramon R. Zamora
Alexander C. Escucha Antonio S. Espedido, Jr.
MANAGEMENT-LEVEL COMMITTEES
MANAGEMENT COMMITTEE ASSET AND LIABILITY COMMITTEE
CREDIT COMMITTEE (CRECOM)
(MANCOM) (ALCO)
Chairman Carlos M. Borromeo Carlos M. Borromeo Carlos M. Borromeo
Vice Chairman Alberto Emilio V. Ramos Consolacion R. Saur James Christian T. Dee
Members Ma. Agnes J. Angeles Jose F. Acetre Ma. Agnes J. Angeles
Gary A. Vargas Alesandra E. Tiaoqui Gary A. Vargas
Liberty S. Basilio Jaime Valentin L. Araneta Liberty S. Basilio
Jose F. Acetre Jose F. Acetre
Alesandra E. Tiaoqui Alesandra E. Tiaoqui
Eleanor R. Recaña* Luis Bernardo A. Puhawan
Neliza M. Oñate Jeffrey Jose DL Bognot
Luis Bernardo A. Puhawan Neliza Ma. R. Oñate
Jeffrey Jose DL Bognot Allan E. Borreo
Victoria T. Alfonso Rosana B. Amoranto**
PLANTERSBANK 187
COLLECTION AND ASSET HR/RETIREMENT COMMITTEE

IT STEERING COMMITTEE (ITSC)
RECOVERY (CARCOM) (HR/RETCOM)
Chairman Carlos M. Borromeo Carlos M. Borromeo
Vice Chairman Maria Luz B. Favis Editha N. Young
Members Jose F. Acetre Ricardo R. Chua Luis Bernardo A. Puhawan
Alesandra E. Tiaoqui Carlos M. Borromeo Adonis C. Yap
Luis Bernardo A. Puhawan Antonio S. Espedido, Jr. Jaime Valentin L. Araneta
Atty. Odel S. Janda Victoria T. Alfonso Eleanor R. Recaña*
OPERATIONS AMLA COMMITTEE INTERNAL AFFAIRS

COMMITTEE (OPSCOM) (AMLACOM) COMMITTEE (IAC)
Chairman Jaime Valentin L. Araneta Atty. Maribel M. Dimayuga Jaime Valentin L. Araneta
Vice Chairman Atty. Odel S. Janda Maria Rosanna L. Testa
Members Neliza Ma. R. Oñate Renato O. Janairo Atty. Odel S. Janda
Renato O. Janairo Alesandra E. Tiaoqui Alesandra E. Tiaoqui
Ma. Cristina M. Farol Luis Bernardo A. Puhawan
Matilde M. Ramoso Jay Araceli L. Suria
Eleanor R. Recaña*
** Resigned - February 2015
* Resigned - January 2015
OFFICERS Odel S. Janda Joseph Nestor T. Reyes Ivan Rey B. Tagpis

Legal Support Services Acquired Assets Credit Appraisal
PRESIDENT
Adonis C. Yap Edmundo D. Sinag MANAGERS
Carlos M. Borromeo Transaction Banking Accounting & Regulatory Report
Mary Bernadette R. Fernandez
GROUP HEADS VICE PRESIDENTS Jay Araceli Lara Suria SME South Luzon Lending II
Human Resources
EXECUTIVE VICE PRESIDENT Neilo U. Altre, Jr. Maria Theresa E. Santos (CBS)
SME Metro Manila Lending I Ma. Joyce Zarate Customer Service
Ma. Agnes J. Angeles Product Development and
SME Banking Group II Allan E. Borreo Management BRANCH GROUP HEADS AND
Corporate Planning Unit AREA HEADS
SENIOR VICE PRESIDENTS ASST. VICE PRESIDENTS
Manolo F. Chan VICE PRESIDENTS
Jose F. Acetre Loans Administration Evangeline Dayrit
Collection And Assets Recovery Credit Control & Administration Elizabeth G. Buencamino
Emmanuel Antonio R. Gomez BBG - North Luzon Area II
Liberty S. Basilio SME PLUS Maribel M. Dimayuga
SME Banking Group I Compliance Office SR. ASST. VICE PRESIDENT
Jose Renato O. Janairo
Gary A. Vargas Branch Operations Raymond C. Apo (CBS) Angel Maria P. Ingalla III
Consumer Banking Risk Management BBG - North Luzon Area I
Gerardo V. Munda
FIRST VICE PRESIDENTS SME Mindanao Lending Annabelle G. Gagarra ASST. VICE PRESIDENTS
SME Visayas Lending
Jeffrey Jose DL. Bognot Sonia B. Ostrea Cynthia D. Altiche
Branch Banking Central Operations & Support Mary Grace F. Guzman BBG - Metro Manila Area I
Special Accounts Management
Neliza Ma. R. Oñate Matilde M. Ramoso Marlene M. Camat
SME Banking Group III Branch Operations and Training Rusela G. Maranan BBG - Visayas Area
Management Reporting
Luis Bernardo A. Puhawan Jose C. Santos, Jr. Emmanuel C. Formeloza
Controllership Auditing Henry C. Perez BBG - South Luzon Area II
Security
Alesandra E. Tiaoqui SR. ASST. VICE PRESIDENTS Manuel Antonio S. Garcia
Credit Supervision and Services Herman C. Salazar, Jr. BBG - Metro Manila Area II
Marjorie T. Esplana Treasury Operations
VICE PRESIDENTS Housing Finance Carlo Magno L. Olmos
Honorina G. San Andres BBG - South Luzon Area I
Victoria T. Alfonso Virgilio I. Libunao Jr. SME North Luzon Lending I
Human Resources/Premises SME North Luzon Lending II Maria Theresa S. Pacheco
Maria Rosalinda E. Santos BBG - Mindanao Area
DEPARTMENT HEADS Josefina G. Mayor Consumer Processing
SME Metro Manila Lending II
FIRST VICE PRESIDENTS SENIOR MANAGERS
Alfredo C. Mojica, Jr.
Roberto F. Banaag SME South Luzon Lending I Bernardino G. Lagarde
Corporate Communications Credit Investigation
METRO MANILA KAPASIGAN PASO DE BLAS NORTH LUZON

A. Mabini Street Andok’s Building
MAIN BRANCH Kapasigan, Pasig City 629 General Luis Street ANGELES
314 Sen. Gil J. Puyat Avenue Tel. No.: (02) 642-2870 Malinta Interchange-NLEX 639 Rizal Street, Angeles City
Makati City Telefax No.: (02) 640-7085 Paso de Blas, Valenzuela City Tel No.: (045) 888-4971
Trunklines: (02) 884-7600 Santos F. Guadines, Jr. (OIC) Tel No.: (02) 984-8258 Telefax No.: (045) 323-4303
(02) 884-7800 Telefax No.: (02) 443-5069 Annalyn L. Tolentino
locals 3900, 3901 LAGRO Carmelita D. P. Apalisoc
3902 and 7645 Bonanza Building BAGUIO
Telefax No.: (02) 812-9359 Quirino Highway, Greater Lagro PATEROS B108 Lopez Building
Maridyl V. Aguirre Novaliches, Quezon City 120 Almeda Street Session Road, Baguio City
Tel. No. (02) 936-4988 Pateros, Metro Manila Tel No.: (074) 446-3993
ALABANG Telefax No.: (02) 461-7214 Tel No.: (02) 641-6768 Telefax No.: (074) 446-3994
G/F Common Goal Building Marcelino G. Sison Telefax No.: (02) 641-6760 Maria. Elena F. Estira
Finance corner Industry Streets Santos F. Guadines, Jr.
Madrigal Business Park LAS PIÑAS BALAGTAS
Ayala Alabang, Muntinlupa City 459 DMR Building QUEZON AVENUE MacArthur Highway
Tel No.: (02) 842-1016 Gonzales Compound 1184-A Ben-Lor Building Wawa, Balagtas, Bulacan
Telefax No.: (02) 842-0761 Alabang-Zapote Road Quezon Avenue, Brgy. Paligsahan Tel No.: (044) 693-1849
Rudolph Lawrence F. Yance Brgy. Almanza, Las Piñas City Quezon City Telefax No.: (044) 918-1425
Tel No.: (02) 800-8893 Tel Nos.: (02) 376-4546 Adelaida P. Dumlao
BANAWE Telefax No.: (02) 805-0438 (02) 376-4548
Nos. 247-249 Banawe Street Benjamin T. Cuyos Telefax: (02) 376-4544 BALANGA
Sta. Mesa Heights Antonette C. Fuentes D.M. Banzon Street
Brgy. Lourdes, Quezon City MANDALUYONG Balanga City
Tel. No.: (02) 412-2426 Paterno’s Building RADA Tel. No.: (047) 237-3666
Telefax No. (02) 412-6249 572 New Panaderos Street HRC Center, 104 Rada Street Fax No. (047) 237-3667
Ann Marie D. Palac Brgy. Pag-asa, Mandaluyong City Legaspi Village, Makati City Mary Jane L. Sazon
Tel. Nos.: (02) 238-3745 Tel Nos.: (02) 810-9369
BANGKAL (02) 238-3744 (02) 810-9370 BALIBAGO
G/F Amara Building Cynthia D. Altiche (OIC) (02) 818-2368 JEV Building
1661 Evangelista Street Telefax No.: (02) 812-2577 MacArthur Highway
Bangkal, Makati City MARIKINA Maria Francesca J. Corporal Balibago, Angeles City
Tel Nos.: (02) 621-3459 CTP Building, Gil Fernando Avenue Tel No.: (045) 892-3325
(02) 621-3461 (former A. Tuazon Avenue) TIMOG Telefax No.: (045) 332-1030
Francisco C. Buenaflor Brgy. San Roque, Marikina City Jenkinsen Towers Maricel E. Manalang
Tel No.: (02) 681-2810 80 Timog Avenue
CUBAO Telefax No.: (02) 645-8169 Brgy. Sacred Heart, Quezon City BALIUAG
Fernandina 88 Suites Catherine S. Tindoy (resigned July 2014) Tel. Nos.: (02) 371-8303 Plaza Naning, Poblacion
222 P. Tuazon Boulevard (02) 371-8305 Baliuag, Bulacan
Cubao, Quezon City NINOY AQUINO AVENUE Telefax No.: (02) 371-8304 Tel. No.: (044) 766-2014
Tel No.: (02) 913-5209 Ground Floor Skyfreight Building Randal Ignatius Z. Razo Telefax No.: (044) 673-1338
Telefax No.: (02) 913-4903 Ninoy Aquino Avenue corner Maria Editha D. Gatmaitan
Wendell M. Gaza Pascor Drive, Parañaque City UN AVENUE
Tel No.: (02) 851-1718 552 U.N. Avenue CABANATUAN
DEL MONTE Telefax No.: (02) 851-1681 Ermita, Manila Burgos Avenue
392 Del Monte Avenue Rafael Ma. C. Guerra III Tel. No.: (02) 400-5468 Cabanatuan City, Nueva Ecija
Brgy. Sienna, Quezon City Telefax No.: (02) 400-5467 Tel. No.: (044) 600-2888
Tel No.: (02) 741-2447 ORTIGAS Elizabeth P. Munda Telefax No.: (044) 463-0441
Maria Victoria I. Calderon OMM Citra Building Imelda D. Villamor (OIC)
San Miguel Avenue VALENZUELA CITY
GREENHILLS Ortigas Center, Pasig City Ong-Juanco Building DAGUPAN
VAG Building, Ortigas Avenue Tel. No.: (02) 637-9778 92 - J Mac-Arthur Highway Burgos Extension, corner
Greenhills, San Juan Telefax No.: (02) 637-9824 Marulas, Valenzuela City Perez Boulevard and Lingayen Highway
Metro Manila Irmina V. Dator Tel. Nos.: (02) 291-6541 Junction, Dagupan City
Tel Nos.: (02) 721-0105 (02) 291-6542 Tel. Nos.: (075) 515-7600
(02) 724-7523 PARAÑAQUE Elizabeth G. Buencamino (OIC) (075) 522-9586
(02) 724-7528 Jaka Plaza Center Maria Suzette D. R. Ramos
Maria Jennifer V. Bondoc Dr. A. Santos Avenue, (Sucat Road) VISAYAS AVENUE
Brgy. San Isidro, Parañaque City Wilcon City Center Mall DOLORES
KALOOKAN Tel. No.: (02) 820-6093 Visayas Avenue, Quezon City STCI Building
AJ Building Telefax No.: (02) 820-6091 Tel. No.: 990-7717 MacArthur Highway, San Agustin
353 A. Mabini Street Roman J. Villacorta Telefax No.: (02) 924-5591 City of San Fernando, Pampanga
Kalookan City Ericson A. Albano Tel. No.: (045) 963-3724
Tel Nos.: (02) 709-3435 Telefax No.: (045) 963-3150
(02) 961-2628 Alexander Y. Liwanag
Abner B. Aballa
PLANTERSBANK BRANCHES 189
GUAGUA PLARIDEL SOUTH LUZON Telefax No.: (049) 536-0549

Sto Niño 0226 Cagayan Valley Road Cherry Jane O. Pamplona (OIC)
Guagua, Pampanga Banga 1st, Plaridel, Bulacan ANGONO
Tel No.: (045) 900-2326 Tel. No.: (044) 670-1067 M.L. Quezon Avenue LUCENA
Fax No.: (045) 900-0779 Telefax No.: (044) 795-0105 Angono, Rizal Merchan corner
Alex L. Serrano Rolando R. Peralta Tel. No.: (02) 651-1782 Evangelista Street
Telefax No.: (02) 651-1779 Lucena City
HAGONOY SAN FERNANDO Lourdes V. Quitoriano Tel No.: (042) 660-6964
Sto. Niño JSL Building Consunji Street Telefax No.: (042) 710-6964
Hagonoy, Bulacan City of San Fernando, Pampanga ANTIPOLO Albert B. Tan
Tel No.: (044) 667-1431 Tel Nos.: (045) 961-4575 EMS Building
Telefax No.: (044) 793-0008 (045) 961-2963 M.L. Quezon Street LIPA
Samuel A. Pagsibigan Telefax No.: (045) 961-1181 corner F. Dimanlig Street C.M. Recto Avenue, Lipa City
Misael D. Velasquez Antipolo City, Rizal Tel. Nos.: (043) 756-1414
LA UNION Tel. No.: (02) 697-1066 (043) 756-1022
AG Zambrano Building SAN MIGUEL Telefax No.: (02) 697-0224 Telefax No.: (043) 756-5003
Quezon Avenue Norberto Street, San Jose Maria Cecilia C. Oxales Maricel C. Mercado
San Fernando City, La Union San Miguel, Bulacan
Tel. No.: (072) 700-3800 Tel Nos.: (044) 764-0162 BACOOR NAGA
Telefax No.: (072) 242-0414 (044) 764-0826 Coastal Road corner P. Burgos Street
Eloisa B. Chan Imelda D. Villamor Aguinaldo Highway corner Gen. Luna Street
Brgy. Talaba VII Naga City
MALOLOS SANTIAGO Bacoor City, Cavite Tel. Nos.: (054) 473-6322
Paseo del Congreso, Catmon JECO Building Tel. Nos.: (046) 417-5940 (054) 473-6321
City of Malolos, Bulacan Maharlika Highway corner (046) 417-5930 Albert B. Tan
Tel. No.: (044) 791-2461 Quezon Street, Victory Norte Maria Victoria G. Baloy
Telefax No.: (044) 662-7819 Santiago City SAN PABLO CITY
Romeo G. Esteban Tel. Nos.: (078) 305-0260 BATANGAS Rizal Avenue corner Lopez Jaena Street
(078) 305-0252 No. 3 P. Burgos Street San Pablo City
MASANTOL Lloyd Vincent R. Binasoy Batangas City Tel. No.: (049) 562-7738
San Nicolas Tel Nos.: (043) 723-1510 Telefax No.: (049) 562-0697
Masantol, Pampanga STA. MARIA (043) 723-7652 Simplicia Elizabeth C. Kalaw
Tel. No. (045) 981-1025 JC De Jesus corner M. De Leon Consorcia M. Gonzales
Telefax No.: (045) 981-1064 Poblacion, Sta. Maria, Bulacan STO. TOMAS
Jona C. Bernarte Tel. Nos.: (044) 641-1150 BIÑAN Agojo Building
(044) 893-0587 Nepa Highway Maharlika Highway
MEYCAUAYAN Telefax No.: (044) 288-2453 San Vicente, Biñan, Laguna Sto. Tomas, Batangas
Mancon Building Helen O. Cabuhat Tel No.: (049) 411-2716 Tel No.: (043) 318-0582
MacArthur Highway Telefax No.: (02) 429-4878 Telefax No.: (043) 778-3247
Calvario, Meycauayan, Bulacan TARLAC Lilibeth A. Carandang Myla L. Mapalad
Tel No.: (044) 228-2461 MacArthur Highway
Telefax No.: (044) 840-0099 San Nicolas, Tarlac City CALAMBA STA. ROSA
Roberto S.R. Evangelista Tel. No.: (045) 982- 9652 Ground Floor, AS Building National Highway
Telefax No.: (045) 982-9653 National Highway, Barangay Uno corner Lazaga Street
MOUNT CARMEL Thelma Marie C. Isais Crossing, Calamba City Balibago, Sta. Rosa, Laguna
AMB Building Tel. Nos.: (049) 545-5310 Tel Nos.: (049) 534-1167
Km. 78 MacArthur Highway TUGUEGARAO (049) 545-3670 (02) 520-8448
Brgy. Saguin, City of San Fernando Metropolitan Cathedral Parish Telefax No.: (02) 520-8808 Sonny L. Triviño
Pampanga Rectory Complex, Rizal Street Rodel B. Solomon
Tel No.: (045) 861-1066 Tuguegarao City TAYTAY
Telefax No.: (045) 636-6055 Tel. Nos.: (078) 255-1020 DASMARIÑAS East Road Arcade
Regina S. Dayrit (078) 255-1024 Veluz Plaza Building Manila East corner Cabrera Road
Mario P. Allauigan Zone I, Aguinaldo Highway Tikling, Taytay, Rizal
OLONGAPO Dasmariñas City, Cavite Tel. Nos.: (02) 658-0850
G/F R&P Guevarra Building 2 URDANETA Tel No.: (046) 416-0501 (02) 658-6409
2043 Rizal Avenue, Olongapo City MacArthur Highway, Nancayasan Joe Marcel M. Ponseca (OIC) Razelyn J. Afuang
Tel. No.: (047) 222-2131 Urdaneta City, Pangasinan
Telefax No.: (047) 222-2020 Tel No.: (075) 568-8690 IMUS U.P. LOS BAÑOS
Ricardo R. Chua Telefax No.: (075) 656-2331 Tanzang Luma Kanluran Road
Loreto V. Muñoz, Jr. Aguinaldo Highway UPLB Campus, Los Baños, Laguna
ORANI Imus City, Cavite Tel. No.: (049) 536-3058
Calle Real, Orani, Bataan VIGAN Tel. No.: (046) 471-4715 Telefax No.: (049) 536-3682
Tel. Nos.: (047) 638-1130 Agdamag Building Telefax No.: (046) 471-4712 Cherry Jane O. Pamplona
(047) 431-1275 Quezon Avenue corner Calle Mabini Joe Marcel M. Ponseca
Telefax No.: (047) 638-1025 Vigan City, Ilocos Norte
Maria Cristina T. Fermin Tel. No.: (077) 674-0300 LB-CROSSING
Melvin R. Aguinaldo Lopez Avenue, Batong Malaki
Los Baños, Laguna
Tel. No.: (049) 536-2596
VISAYAS MINDANAO
BACOLOD CAGAYAN DE ORO

F. Soliman Building Tiano Brothers Street
Lacson Street corner Luzuriaga Street Cagayan de Oro City
Bacolod City, Negros Oriental Tel. Nos.: (08822) 727-082
Tel. Nos.: (034) 704-1084 (088) 857-2879
Telefax No.: (034) 704-1089 Telefax No.: (08822) 727-083
Jaime Javier D. Torre Yolando M. Radaza
CEBU - MANGO DAVAO - RECTO

JSP Mango Plaza C. M Ville Abrille Building
Gen. Maxilom Avenue C. M. Recto St., Davao City
corner Echavez Street Tel. Nos.: (082) 227-1802
Cebu City (082) 305-5808
Tel. No.: (032) 231-4304 Local 4344
Telefax No.: (032) 231-4736 Leah O. Lim
Maria Theresa L. Tan
DAVAO – J.P. LAUREL
CEBU - P. DEL ROSARIO Door 2, Gutierrez Building
Cebu Leesons Building J.P. Laurel Avenue, Davao City
P. Del Rosario Street Tel. No.: (082) 305-4439
corner D. Jakosalem Street Telefax No.: (082) 222-1255
Cebu City Mae D. Hipolito
Tel. Nos.: (032) 253-2212
(032) 253-2213 GENERAL SANTOS
Maria Theresa L. Tan I. Santiago Boulevard
General Santos City
ILOILO Tel. No.: (083) 552-6329
Cua Building Telefax No.: (083) 552-6330
Quezon Street, Iloilo City Maria Theresa S. Pacheco
Tel. No.: (033) 336-9752
Telefax No.: (033) 336-9752 TAGUM
Elly Beth L. Amparo Jose Rizal Street
Tagum City
MANDAUE Davao del Norte
Co Tiao King Building Tel. No.: (084) 218-8216
Cebu North Road (084) 218-8217
Basak, Mandaue City Lea O. Lim
Tel. No.: (032) 346-8814
Telefax No.: (032) 346-6959
Pia Monica C. Alturas
SUBSIDIARIES AND AFFILIATES 191
Manulife China Bank Life Assurance Corporation (MCBLife), established on March 23, 2007, is
a joint venture bancassurance company of China Bank and The Manufacturers Life Insurance
Company (Phils.), Inc. (Manulife Philippines), a wholly-owned domestic subsidiary of Canada-
based Manulife Financial Corporation, one of the largest life insurance companies in the
world. To strengthen the bancassurance alliance, China Bank raised its capital investment
in MCBLife from 5% to 40%, approved by the BSP on September 12, 2014, subject to
compliance with additional requirements. MCBLife provides a wide range of innovative
24/F LKG Tower, 6801 Ayala Ave.
insurance products and services through China Bank branches nationwide.
Makati City 1226 Philippines
Tel. No. : (632) 884-5433
Fax No. : (632) 845-0980
Robert D. Wyld Mark Reynan S. Antiga
Customer Care Line: (632) 884-7000
President and Chief Executive Officer Vice President and
E-mail : phcustomercare@manulife.com
Chief Bancassurance Officer
www.manulife-chinabank.com.ph
China Bank Insurance Brokers, Inc. (CBIBI) is a wholly-owned subsidiary of the Bank
established on November 3, 1998 as a full service insurance brokerage. It provides direct
insurance broking for retail and corporate customers, with a wide and comprehensive range
8/F VGP Center, 6772 Ayala Ave. of plans for life and non-life insurance. The life insurance retail products include Whole Life,
Makati City 1226, Philippines Endowment, Investment-Linked, Education, Term and Life Protection with Hospitalization
Tel. No.: (632) 885-5555 and Critical Illness Cover. Under the Non-Life insurance category, programs for residential,
VGP Center: (632) 751-6000 personal, corporate and industrial clients are available, with insurance coverages such as
Property, Motor, Marine, Accident and Liability.
Julieta P. Guanlao Jacquelyn A. Yu

President
Carlos Juan L. Arceo
Deputy Senior Managers
Cynthia B. Nono
Vice President - Bancassurance
CBC Properties and Computer Center, Inc. (PCCI ) was created on April 14,1982 to provide
computer-related services solely to China Bank. It manages the Bank’s electronic banking
and e-commerce requirements, including sourcing, developing and maintaining software
and hardware, financial systems, access devices and networks to foster the safety and
4/F & 15/F China Bank Building soundness of China Bank’s technology infrastructure and keep its processing capabilities
8745 Paseo de Roxas corner Villar St. in top shape.
Tel. Nos.: (632) 885-5555; 885-5053 Gilbert U. Dee Phillip M. Tan Editha N. Young
885-5060; 885-5051; 885-5052 Chairman General Manager VP/Chief Technology Officer
Fax No.: (632) 885-5047: 885-9458
Peter S. Dee Augusto P. Samonte Meliza D. de Leon
President Vice President Ricardo F. Operiano
Belinda P. Mendoza
Ricardo R. Chua Cristina D. Cristobal Rosalito C. dela Cruz
Director Senior Assistant Vice President Georgia Lourdes Melissa F. Maog
Senior Managers
William C. Whang Joseph Jeffrey B. Javier
Director/Treasurer Assistant Vice President Liberato Q. Deogracias, Jr.
Deputy Senior Manager
Joseph T. Yu
Assistant Vice President Maria Magdalena M. Tupalar
Joel R. Jocson
Managers
CHINA BANK PRODUCTS AND SERVICES
DEPOSITS & RELATED SERVICES REMITTANCE SERVICES • Accident and Health

– Medical Insurance - HMO
Peso Deposits • Overseas Kababayan Services - – Personal Accident - Individual &
• Checking China Bank On-Time Remittance Group
• Savings (Foreign Remittances) – Travel Insurance
• Time • Overseas Kababayan Savings Account Casualty - Money Insurance, Fidelity
Foreign Currency Deposits (US Dollar, (OKs) Account Guarantee, Property Floater
Euro and Yuan) • China Bank Money Transfer • All Risks Insurance - Contractor’s All
• Savings Risk (CAR) Insurance/Erector’s All Risk
• Time TRUST SERVICES Insurance
Manager’s/Gift Check/Demand Draft • Bonds (Judicial/Performance/Fidelity/
Corporate and Institutional Trust
Safety Deposit Box Surety, etc.)
• Fund Management
SSS Pension Accounts Specialized Insurance Programs
– Employee Benefit Planning
Direct Deposit Facility for US Pensioner
– Retirement Plan
Night Depository Services PAYMENT & SETTLEMENT SERVICES
– Provident/Savings Plan
Armored Car Deposit Pick-up Services
• Escrow Services Electronic Banking Channels
Domestic Collections/Out-of-town Checks
• Collateral/Mortgage Trust • China Bank Automated Teller Machine
• Loan Agency Services (ATM)
LOANS & CREDIT FACILITIES
Wealth Management • China Bank TellerPhone
Corporate Loans and Commercial Loans • Estate Planning • China Bank Online Internet, Mobile
Loan Syndication • Living Trust Banking and Speed Banking
Factoring Receivables • Life Insurance Trust • Cash Accept Machine
Special Lending Programs • Investment Management Arrangement • Cashless Shopping (POS)
• BSP Rediscounting – Investment Advisory
• Industrial Guarantee Loan Fund – Investment Agency CASH MANAGEMENT SOLUTIONS
• Environmental Development Program Unit Investment Trust Funds
• Sustainable Logistics Development • China Bank Money Market Fund Delivery Channel
• Industrial and Large Projects • China Bank Short Term Fund China Bank Online
Guarantee Programs • China Bank Intermediate Fixed Income Liquidity Management
Consumer Loans Fund Account Balance & Transaction Reporting
• HomePlus Real Estate Loans • China Bank GS Fund Sure Sweep
• Contract to Sell Financing • China Bank Balanced Fund
• AutoPlus Vehicle Loans • China Bank Equity Fund Disbursement
Credit Cards • China Bank Dollar Fund Check Write Plus Manager’s Check (Outsourced)
• China Bank Prime Mastercard Check Write Plus Corporate Check (Outsourced)
• China Bank Platinum Mastercard TREASURY SERVICES Check Write Plus (Software)
• China Bank World Mastercard Corporate Inter-Bank Fund Transfer (Corporate IBFT)
Peso-Denominated Instruments
• Government and Corporate Bond TellerCard Payroll Crediting
INTERNATIONAL BANKING ChinaPay (Payroll Software)
Issues
PRODUCTS & SERVICES Payroll Processing
Dollar-Denominated Instruments
Import and Export Financing • Government and Corporate Bond Automatic Crediting Arrangement (ACA)
Foreign and Domestic Commercial Letters Issues eGovernment Payments (powered by BancNet):
of Credit Foreign Exchange • BIR eFPS Online Tax Payments
Standby Letters of Credit • Spot, Forward, Swaps • SSS Monthly Contribution and Loan Payment
Irrevocable Reimbursement Undertaking • Philhealth Monthly Contribution
Collection of Clean and Documentary Bills INSURANCE PRODUCTS • Pag-IBIG Monthly Contribution
Bank Guaranty (Shipside Bond)
Bancassurance Receivables
Purchase and Sale of Foreign Exchange
• Life and Income Protection Check Depot (Post-Dated Check Warehousing)
Travel Funds
• Critical Illness with Life Cover Bills Pay Plus
Servicing of Foreign Loans and Investments
• Endowment • Over-the-Counter
Trade Inquiry
• Retirement • ATM
Trust Receipt Facility
• Education • Internet
Correspondent Banking Services
• Investment - Linked • Mobile
• Term Insurance • Phone
INVESTMENT BANKING SERVICES
Group Life Insurance • BancNet Bills Pay ATM
Debt Financing Non-Life Insurance Debit Point-of-Sale (powered by BancNet)
• Bonds • Fire Insurance - Residential, Automatic Debit Arrangement (ADA)
• Syndicated Loan Commercial & Trust Receipts eGovernment Collection
• Corporate Note • Motor Car Insurance • SSS Sickness / Maternity / Employee’s
• Structured Loan • Aviation Insurance Compensation (SSS SMEC)
Equity Financing • Marine Insurance - Hull/Vessel and
• Convertible Shares Cargo
• Initial Public Offering (Common Shares) • Electronic Equipment Insurance
• Follow on Offering (Common Shares) • Liability Insurance - Comprehensive
• Preferred Shares General Liability, Products, etc.
Project Finance • Directors and Officers Liability
Mergers & Acquisition / Financial Advisory Insurance
C hina Banking Corporation (China Bank), stock symbol CHIB, was
incorporated on July 20, 1920 and commenced business on August 16,
1920 as the first privately-owned commercial bank in the Philippines, ANNUAL STOCKHOLDERS’ MEETING
catering initially to the needs of Chinese-Filipino businessmen. It played
May 7, 2015, Thursday, 4:00 p.m.
a key role in post-World War II reconstruction and economic recovery Penthouse, China Bank Building
through its support to businesses and entrepreneurs in critical industries. 8745 Paseo de Roxas corner Villar Street
China Bank was listed on the local stock exchange by 1947, and acquired
its universal banking license in 1991. The Bank serves the corporate,
commercial, middle, and retail markets with a wide range of SHAREHOLDER SERVICES
domestic and international banking services. It is one of the For inquiries or concerns regarding dividend payments, account status, We welcome letters or all such communications on matters pertaining
largest universal banks in the country in terms of assets, change of address or lost or damaged stock certificates, please get in touch to the management of the Bank, stockholders’ rights, or any other bank-
with: related issues of importance. Stockholders who wish to communicate with
capital base, and market value. any or all of the members of the China Bank Board of Directors may send
letters to:
Stocks and External Relations
Office of the Corporate Secretary Atty. Corazon I. Morando
China Banking Corporation Vice President and Corporate Secretary
11/F China Bank Building China Banking Corporation
8745 Paseo de Roxas corner Villar St. 11/F China Bank Building
Makati City 1226, Philippines 8745 Paseo de Roxas corner Villar St.
Contact persons: Email: ocsstocks@chinabank.ph
Atty. Leilani B. Elarmo
Atty. Julius L. Danas
Pamela D. Pablo INVESTOR INQUIRIES
Tel. No.: (+632) 885-5133 We welcome inquiries from investors, analysts, and the financial community.
Fax No.: (+632) 885-5135 For information about the developments
Email: lbelarmo@chinabank.ph at China Bank, please contact:
jldanas@chinabank.ph
ocsstocks@chinabank.ph Alexander C. Escucha
Stock Transfer Service, Inc. Investor & Corporate Relations Group
Unit 34-D Rufino Pacific Tower China Banking Corporation
6784 Ayala Avenue 28/F BDO Equitable Tower
Makati City 1226, Philippines 8751 Paseo de Roxas
Contact persons: Tel. No.: (+632) 885-5601
Antonio M. Laviña Email: investor-relations@chinabank.ph
Contents Ricardo D. Regala, Jr. Website: www.chinabank.ph
Tel. No.: (+632) 403-2410; 403-2412; 403-9853

2 Performance Highlights Fax No.: (+632) 403-2414
4 Message to Stockholders
10 Operating Highlights
22 Human Resources
28 Corporate Social Responsibility
30 Consumer Protection Post-consumer Recovered Fiber
32 Corporate Governance
About The Cover 54 Board of Directors The cover of this China Bank Annual Report is printed on Radiance New Evolution White 280gsm. Radiance is an
uncoated felt-marked paper that captures the exrtraordinary printing definition and effects of a coated paper,
The bridge represents both 58 Management Committee certified by the Forest Stewardship Council (FSC) which promotes environmentally appropriate, socially beneficial, and
China Bank’s historical track record 60 Senior Officers economically viable management of the world’s forest.
and legacy of enduring partnerships 63 Management Directory
with generations of customers and its 64 Financial Statements The main report is printed on Limited Edition Fine Smooth 90gsm, 30% Recycled waste and FSC certified fibres. Made
trajectory of future growth serving carbon neutral, Limited Edition Fine Smooth is produced with the use of 100% wind-generated electricity. All pulps
168 Branches are made elemental chlorine free helping to reduce harmful by-products.
more customers in more areas, with 178 Off-Branch ATM Locations
more products and services. The bridge
191 Business Centers The Financial Statement of this report is printed on FSC certified 9 Lives Recycled Offset 100% Recycled 80gsm that is
also represents the Bank’s timeless role made from 100% post consumer fiber.
182 Subsidiaries and Affiliates
as a financial intermediary between
savers and borrowers — entrepreneurs
192 Products and Services
to grow their businesses and families
to fulfill their dreams.
ANNUAL REPORT 2014

China Bank Building
www.chinabank.ph

2014 Annual Report

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ANNUAL REPORT 2014

CHINA BANKING CORPORATION

Tel. No.: (+632) 403-2410; 403-2412; 403-9853

We will be a primary catalyst in the creation of wealth

We will maintain the highest ethical standards, sense of

NET INCOME RETURN ON EQUITY TOTAL RESOURCES TOTAL DEPOSITS

STOCKHOLDERS’ EQUITY TOTAL CAR EARNINGS PER SHARE

CASH DIVIDENDS PAID BRANCHES ATM

2012 2013 2014

HANS T. SY GILBERT U. DEE RICARDO R. CHUA

DEAR FELLOW SHAREHOLDERS,

W e are delighted to report that

us to offer more banking convenience

2 014 was an eventful year of

CBS & Plantersbank: 2,006

No. of Customers / Accounts – Branch Banking

1.4 M Center – Commercial

We say, “Your success is our

We put a lot of infrastructure and

Our vast branch network is complemented by

CHINA BANK CHINA BANK CHINA BANK

* E-channel transactions include ATM transactions (on-us + acquirer + issuer + POS),

Credit plays an important role in our

Major undertakings are underway to

In 2014, our Trust Group focused on

Our Private Banking Group continued

We aim to be a trusted advisor, a

Sole Issue Manager/

To be the financial partner of SMEs and Consumers,

For employees, Project Pipeline was

Moving forward, CBS will continue Opened

that are responsive to its target 12 Easi-Banking

I n 2014, our Human Resources

SUPPORT 156 229 385

TECHNICAL 2,470 4,775 7,245

66% Recruitment out for vacancies, the position will

HRD conducts periodic reviews of Programs Participants

One employee may have attended more than one program.

Rewards and recognition

TUITION REFUND While we acknowledge outstanding performance, we also recognize loyalty

Work-life balance Employee communications

China Bank has always been a partner to the

I n 2014, we continued to engage our employees and partner with our

We sustained our social investments by supporting charities, foundations,

In protecting the environment, we believe that less is more. In 2014,

We cultivate a culture of meaningful giving. Our branches nationwide

PROTECTION OF PRIVACY OF INFORMATION

DISCLOSURE AND TRANSPARENCY MAIL

G ood corporate governance is a pillar of China Bank’s

I. THE BOARD OF DIRECTORS AND BOARD COMPOSITION

INTERNAL AUDIT COMPLIANCE RISK OFFICE OF THE BOARD OF TRUSTEES TRUST

INVESTOR AND CHIEF

RETAIL BANKING LENDING

The members of the different

Executive Committee (ExCom)

The Compliance Committee convened 13 times in Corporate Governance Committee (CorpGov) is

* Until his retirement as President & CEO on August 31, 2014

RISK MANAGEMENT MARKET AND LIQUIDITY RISK

OPERATIONAL AND IT RISK Business, and Investment Management Activities. The

REMUNERATION Reports/disclosures may be sent to: