2013 afr goccs volume ii-a

8/10/2019 2013 Afr Goccs Volume II-A

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Annual

Financial

COMM

ISSIONON

AUD

IT

REPUBLIC

OFTHEPH

ILIP

PIN

ES

Republic of the Philippines

COMMISSION ON AUDITCommonwealth Avenue, Quezon City


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2013Annual

Financial

R t


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Table of Contents

Page

Chapter I - Introduction

Legal basis. 1

COA - CY 2013 Thrusts 1

Objectives 2

Structure, contents, and limitations 2Methodology of summarization. 4

Guide to users 5

Chapter II - Financial Highlights and Analysis

Financial condition.... 6

Financial performance... 9Changes in equity... 11

Cash flows...... 12

Chapter III - Summary Financial Statements

Over-all summary financial statements

B l Sh t 15


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Chapter IIntroduction

Legal basis

1 The Commission on Audit is mandated under Section 4, Article IX-D of the

Philippine Constitution and Section 41 of Presidential Decree (PD) 1445, otherwise

known as the Government Auditing Code of the Philippines, to submit to the

President and Congress, the Annual Financial Report (AFR) on the financial

condition and results of operations of the government. The AFR for government-

owned and/or controlled corporations (GOCCs) including the government financial

institutions (GFIs) and their subsidiaries, and water districts is prepared by the

Corporate Government Sector (CGS). Presented in the AFR is the comparative

summary of the financial statements of GOCCs for the CYs 2013 and 2012. Thefinancial statements are comprised of the balance sheet, income statement,

statement of changes in equity, cash flow statement, and the summary of significant

accounting policies and other explanatory information or notes to the financial

statements. Also disclosed in the AFR in concise and summarized form are the

audit observations/findings and recommendations or measures to improve the

efficiency and effectiveness of corporate governance as well as the status of

implementation of prior years audit recommendations. These audit observations

d t t f i l t ti f d ti lift d f th i di id l


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independence; b) organizational efficiency, technical competence and

professionalism; and c) strategic partnership and linkages.

Objectives

5 This AFR is intended to serve as a useful instrument to address the advocacy of

various groups such as the media, civil society, peoples organizations, non-

government organizations and even the international community in attainingtransparency in government agencies and giving public access to needed

information.

6 It aims to make available to a wide range of users the necessary information on the

financial position, performance, changes in equity, and cash flows not only of the

individual GOCC but also of the entire corporate government. The wide range of

users include, among others, the President, the executive branch tasked to managethe affairs of the entire bureaucracy, and the legislative branch of government in

charge of governance relative to its rendition of economic decisions. It also

provides information, in summarized form, on the audit observations and the

corresponding value-added measures recommended by the Commission, including

the status of implementation of the previous years audit recommendations,

intended to enhance the relevance and reliability of financial reporting and

management or operational processes of GOCCs. Primarily, the contents are aimed

t ti f i th i f ti d f t t k h ld t d


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including 10 Stand Alone Agencies (SAA) which financial statements are

summarized under Volume II-A while the remaining 458 are water districts whichfinancial reports are separately summarized under Volume II-B.

9 Of the 596 financial reports consolidated in two volumes, only 309 or 51.85 percent

were audited while the remaining 287 or 48.15 percent are yet to be audited. The

bulk of the unaudited financial statements pertain to water districts located in the

different regions. These water districts are audited through team audit approach,

the audit engagement of which are usually performed after the audits of the regular

agencies. Audits of regular GOCCs are prioritized due to the assignment of

resident auditors in these agencies.

10 Chapter II presents the comparative financial highlights and analysis of the CYs

2013 and 2012 financial profile of GOCCs. Analysis is based on the overall

financial data and summary totals of the major line figures shown in the

consolidated financial statements as presented in Chapter III of this report.

11 Chapter III presents in comparative form the summarized financial statements of

the GOCCs for CYs 2013 and 2012. It is however informed that there were

agencies which submitted their financial statements for CY 2012 but failed to

submit their CY 2013 data, hence, adjustments were effected in last years financial

data. These changes are properly disclosed in the Notes to the Financial

Statements.

12 Ch IV h S A di R l hi h i l d h ( i) f


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Methodology of summarization

14 The summarized financial data as presented is a consolidation of the balance sheets,

income statements, statements of changes in equity, and cash flow statements. The

overall data in the financial statements were derived thru line by line

summarization of the reported balances of accounts in the financial statements ofGOCCs. This summarization is done at the Cluster level having jurisdiction over

the GOCCs.

15 On the other hand, the financial information of water districts are initially

summarized at the regional level. The inputs coming from the fifteen regions for

the water districts are combined at the Office of the Assistant Commissioner for

Corporate Government Sector to generate the overall figures and presented as one

combined data for the water districts nationwide in the summarized financialstatements of Cluster 3Public Utilities. The top level summarization done at the

Office of the Assistant Commissioner for CGS combines the financial data which

were summarized at the Cluster level.

16 Only those available data as of September 10, 2013 pertaining to the audit opinion

rendered, significant and common audit observations with their corresponding

recommendations, status of issuance and settlement of the notices of suspensions,


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Guide to users

18 Volume II-Aof the AFR is composed of four chapters, namely: (I) Introduction;

(II) Financial Highlights and Analysis; (III) Financial Statements; and (IV)

Summary Audit Results; and Annexes. The financial data as presented are

summarized/consolidated to provide readers an overview of the financial position

and results of performance of the entire corporate government sector.

19 The first set of summary financial statements presented in Chapter III, shows the

overall financial figures for the entire government corporate sector duly supported

with the summarized financial information by Cluster. The Cluster summarization

is further supported by the individual GOCC financial data which is published at

the COA Website at http://www.coa.gov.ph.


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Chapter IIFinancial Highlights and Analysis

20 The analysis and interpretation of the financial data of the entire government-

owned and/or controlled corporations (GOCCs) were based on the summary totals

of the major accounts from the combined financial statement components (balance

sheet, income statement, statement of changes in equity and statement of cash flow)

presented in Chapter III hereof. Such financial analysis and interpretation of dataare stated in general terms and do not reflect the financial position, performance,

changes in equity and corresponding cash flows of the individual GOCC. The

separate discussion on the financial highlights and analyses of the transactions of

the individual GOCC are presented in the Annual Audit Reports (AARs) rendered

by the Commission on Audit (COA) for each GOCC/government financial

institution (GFIs) which can be accessed through the COA Website at

http://www.coa.gov.ph.

Financial condition

21 The GOCCs had a combined total assets of P9,278.88 billion, total liabilities of

P7,023.79 billion and equity of P2,255.08 billion as of December 31, 2013. In

l h f l l li bili i i di h bili f


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22

GOCCs ability to provide future services to its clients can be gleaned from itscombined CY 2013 total assets which reached the level of P9,278.88 billion, an

increase of P563.85 billion or 6.47 percent when compared to previous years level

of P8,715.03 billion. The top 20 GOCCs ranked in terms of total assets based on

those that submitted the required financial data is shown in Annex 5.

23 Exhibited in Chart II 2 is the composition of the combined current assets which

represent 66.46 percent of the total combined resources of the GOCCs for CY

2013.

Chart II2

Composition of current assets

(in percentage)

7.23%

59.51%

13.26%

18.55%

0.61%

0.35%

0.49%

Cash and cash equivalentGross international reserves

Short-term investments

Receivables

Inventories

Prepayments & deferred charges

Others


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26 The GOCCs collectively incurred total liabilities of P7,023.79 billion for CY 2013

higher by P472.03 billion or 7.20 percent as compared to previous years balance

of P6,551.77 billion. From among the GOCCs that submitted financial reports, the

top 20 agencies ranked by total liabilities are presented in Annex 6.

Chart II4

Composition of non-current assets

(in percentage)

26.86%

29.98%

27.69%

9.21%

1.46%

0.00%

4.79%

0.00%

Long-term receivables

Long-term investments

Property, plant & equipment

Investment property

BOT electric plants under capital lease

Intangible assets

Miscellaneous assets and deferred credits

Others


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29

The working capital or liquidity ratio (current assets of P6,166.78 billion dividedby current liabilities of P5,497.32 billion) shows a positive ratio of P1.12 current

assets for every P1.00 current liabilities.

30 The CY 2013 combined equity of GOCCs totaling P2,255.08 billion is slightly

higher by P91.82 billion or 4.24 percent from the previous years balance of

P2,163.26 billion. From among the GOCCs included in the summarized overall

Chart II4

Composition of non-current liabilities

(in billion pesos)

Foreign

borrowings

346.00Domestic

borrowings

435.82

Other non-current

liabilities 744.65


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34

This years share of the National Government (NG) from the income of GOCCstotaling P31.32 billion exceeded last years share of P28.99 billion by P2.33 billion

or 8.05 percent. The bulk of the amount was contributed by the Philippine

Amusement and Gaming Corporation (PAGCOR). The NG share from PAGCOR

is computed at 50 percent of winnings, net of payouts and after the five percent

franchise tax. It is directly remitted to the Bureau of Treasury.

35 The CY 2013 total expenses totalling P603.31 billion was lower by P35.00 billion

Chart II5

Composition of income

(in billion pesos)

0

100

200

300

400

500

600

700

Business and

service income

Gains and

premiums

Others


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37 Taken from the submitted financial data of GOCCs included in the herein

consolidation, presented in Annex 12 is a summary of the discretionary (P24.54

million), representation and entertainment (P1,085.44 million),

extraordinary/contingency/emergency (P140.32 million), promotional/advertising

(P3,073.33 million), confidential/intelligence (P191.96 million), and consultancy

(P3,849.71 million) expenditures, or a total of P8,365.29 million, accounting for the

1.39 percent of the total expenditures incurred for CY 2013.

38 Subsidy provided by the national government (NG) and other government agencies

to GOCCs increased by P6.88 billion or 9.09 percent from P75.71 billion in 2012 to

P82.60 billion in CY 2013. Annex 13 presents the list of GOCCs and the annual

increase on subsidy received from the NG while Annex 14 details the subsidy

received from other government agencies.

39

Taxes imposed by the NG on income earned by GOCCs shows a decrease of P4.52billion or 27.89 percent as it closed at P11.68 billion from the CY 2012 figure of

P16.19 billion. The top 20 GOCC taxpayers is presented in Annex 15.

40 Net income after taxes amounted to P168.86 billion at the end of CY 2013. The

amount is P20.68 billion or 13.95 percent more than the previous year-end total of

P148.18 billion.


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accounts comprising governments net worth include government equity at P386.55

billion or 17.14 percent, members equity of P249.68 billion or 11.07 percent, sharecapital of P214.48 billion or 9.51 percent, and appraisal increment at P181.23

billion or 8.04 percent. Collectively, retained earnings of GOCCs closed at a

positive balance of P174.41 billion which posted a P50.42 billion or 40.67 percent

increase from the CY 2012 figure of P123.99 billion. All other equity accounts

collectively contributed P121.48 billion or 5.43 percent of the total net worth.

45 Presented in Chart II 7 is the graphical illustration of the composition of equity

expressed in billion pesos.

Chart II7

Composition of equity

(in billion pesos)

386.55

181.23

927.25

174.41

214.48 249

.68

121.48

200

300

400

500

600

700

800

900

1000


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47 An increase of P375.96 billion or 553.92 percent was noted in the net cash

provided from operating activities of CY 2013 as it reached P308.09 billion,

higher than the previous years negative net cash used from operating activities of

P67.87 billion. A total of P1,190.77 billion cash inflows were generated from

operations compared to the P882.68 billion cash out flows which the GOCCs

collectively incurred during the year.

Chart II

8Comparative cash flow activities

(in billion pesos)

(67.87)

308.09

(153.58)

(157.15)

43.9

2

31.53

-200

-100

0

100

200

300

400

2013 2012

Operating Investing Financing


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Chapter IIISummary Financial Statements

50 The financial statements in the succeeding pages pertain to the summarized financial

data from the consolidated balance sheet, income statement, statement of changes in

equity, and cash flow statements of Government Owned and/or Controlled

Corporations (GOCCs) with head offices in the National Capital Region (NCR) under

the audit supervision of the six Clusters of the Corporate Government Sector as well

as the stand-alone GOCCs with head offices in the regions and the water districts

which are located nationwide.

51 The overall balance sheet presents the total financial position of GOCCs as of

December 31, 2013 while the income statement shows their entire financial

performance for the year ended December 31, 2013. The statement of changes in

equity provides information on all the changes in equity. The cash flow statementimparts information on the cash flow from operating, investing and financing

activities as well as the effects of exchange rate changes.

52 The next summarization is the presentation of financial statement components

showing the GOCCstotals by Cluster and the corresponding summary of significant

accounting policies and other explanatory information.


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Government-Owned or Controlled CorporationsSummary Balance Sheet

December 31, 2013

(With corresponding figures for 2012)

In thousand pesos

2013 2012

Assets

Current Assets 6,166,775,942 5,660,842,938

Cash and cash equivalents 445,791,287 366,668,298Gross international reserves 3,670,012,816 3,424,294,819

Short-term investments 817,637,457 697,201,407

Receivables (net) 1,144,135,360 1,084,522,769

Inventories (net) 37,423,620 44,062,085Prepayments and deferred charges 21,628,486 17,602,942

Others 30,146,916 26,490,618

Non-current assets 3,112,100,821 3,054,183,662

Long-term receivables (net) 835,966,802 905,815,566

Long-term investments (net) 932,935,010 845,921,778Property, plant and equipment (net) 861,700,280 849,066,257

Investment property 149,127,129 135,004,001

BOT electric plants under capital lease 45,547,019 47,506,125

Intangible assets 81,668 91,752

Miscellaneous assets and deferred credits 62,302 86,623Others 286,680,611 270,691,561

Total assets 9,278,876,763 8,715,026,601


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Republic of the PhilippinesGovernment-Owned or Controlled CorporationsSummary Income Statement

Year ended December 31, 2013


In thousand pesos

2013 2012

Income 732,570,932 755,965,961

Business and service income 652,800,204 643,530,060Gains and premiums 29,904,413 47,938,312Others 49,866,315 64,497,589

Share of National Government 31,324,479 28,991,835

Income after share of National Government 701,246,453 726,974,126

Expenses 603,310,685 638,314,189

Business expenses 274,248,469 275,708,801Personal services 63,840,114 62,717,532Maintenance and other operating expenses 191,919,218 183,957,338Financial expenses 49,884,624 52,384,047Others 23,418,260 63,546,471


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Government-Owned or Controlled CorporationsSummary Statement of Changes in Equity

Year ended December 31, 2013(With corresponding figures for 2012)

In thousand pesos

2013 2012

Government equity

Balance, beginning of period 375,471,355 340,435,967Additions/deductions 11,079,006 34,824,348

Balance, end of period 386,550,361 375,260,315

Share capital

Balance, beginning of period 236,239,978 182,413,641Additions/deductions (21,757,006) 53,826,337


Contingent capitalBalance, beginning of period 47,605 47,307Additions/deductions 142 298

Balance, end of period 47,747 47,605

Share premium

Balance, beginning of period 1,218,833 1,218,833Additions/deductions - -


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2013 2012Net unrealized gains and lossesBalance, beginning of period 90,835,155 66,159,090Additions/deductions (21,913,628) 24,676,065


Donated capital

Balance, beginning of period 12,580,698 9,586,724

Additions/deductions 622,149 2,997,638Balance, end of period 13,202,847 12,584,362

Equity in joint ventureBalance, beginning of period 15,000 15,000Additions/deductions - -


Miscellaneous surplusBalance, beginning of period 3,536,431 9,698,948Additions/deductions 187,831 (6,162,517)


Surplus reservesBalance, beginning of period 867,651,555 801,444,703Additions/deductions 59,594,947 66,206,852



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2013 2012

Accumulated other comprehensive income

Balance, beginning of period (9,598,954) (9,822,257)Additions/deductions (3,197,504) 223,303

Balance, end of period (12,796,458) (9,598,954)

Non-controlling interest in the net assets

Balance, beginning of period 4,322 4,664Additions/deductions (742) (342)


Total Equity 2,255,083,197 2,163,261,179

* Variances between the total equity reflected in the Summary Statement of Changes in

Equity vis--vis the Summary Balance Sheet amounting to P0.33 million and P0.02 millionfor the years ending 2013 and 2012, respectively, were attributed to the variances in the

financial statements of water districts. The breakdown thereof is presented in Annex E of

Volume II-B of this report.


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Republic of the PhilippinesGovernment-Owned or Controlled Corporations

Summary Cash Flow StatementYear ended December 31, 2013


In thousand pesos

2013 2012

Cash flow from operating activitiesCash inflows 1,190,767,380 1,075,155,258Cash outflows 882,678,359 1,143,028,448

Net cash provided by (used in) operating activities 308,089,021 (67,873,190)

Cash flow from investing activitiesCash inflows 241,490,118 268,770,973Cash outflows 395,070,680 425,916,374

Net cash used in investing activities (153,580,562) (157,145,401)

Cash flow from financing activities

Cash inflows 538,412,196 597,754,738Cash outflows 494,497,039 566,227,590

Net cash provided by financing activities 43,915,157 31,527,148

Effects of exchange rate changes on cash and cash


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CLUSTER - 1

and


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Cluster 1 - Banking and Credit

Summary Statement of Financial PositionDecember 31, 2013


In thousand pesos

2012

Note 2013 (As restated)

Assets

Current assets 4,523,252,196.00 4,185,346,467Cash and cash equivalents 2 127,728,144 105,452,760

Gross International reserves 3 3,670,012,816 3,424,294,819

Short-term investments 4 312,587,683 254,453,798

Receivables (net) 5 403,263,489 391,136,602

Inventories (net) 6 8,489,310 9,006,578

Prepayments and deferred charges 7 47,842 115,590

Others 8 1,122,912 886,320

Non-current assets 290,051,740 323,501,563Long-term receivables (net) 9 24,087,101 39,609,446

Long-term investments (net) 10 180,320,172 165,468,162

Property, plant and equipment (net) 11 20,165,009 19,095,603

Investment property 12 15,738,867 11,204,305

Others 13 49,740,591 88,124,047

Total assets 4,813,303,936 4,508,848,030


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Cluster 1 - Banking and CreditStatement of Financial PositionDecember 31, 2013(With corresponding figures for 2012)(In thousand pesos)

2012 2012 20122013 (As restated) 2013 2012 2013 (As restated) 2013 (As restated)

AssetsCurrent assets 4,083,855,887 3,831,467,590 869,492 871,636 177,216 148,237 535,217 501,131Cash and cash equivalents - - 91,651 93,795 176,863 147,921 456,614 422,774Gross International reserves 3,670,012,816 3,424,294,819 - - - - - -Short-term investments 173,810,479 173,161,366 - - - - - -Receivables (net) 231,513,775 224,996,648 777,841 777,841 49 34 64,453 64,775Inventories (net) 8,233,603 8,729,543 - - 33 5 14,119 13,422Prepayments and deferred charges - - - - 271 277 31 160Others 285,214 285,214 - - - - - -

Non-current assets 118,229,691 144,901,908 716,583 714,982 2,061 1,188 41,230 39,717

Long-term receivables (net) - - - - - - - -

Long-term investments (net) 45,695,504 44,981,355 - - - - - -

Property, plant and equipment (net) 17,749,582 16,497,523 - - 2,061 1,188 - -

Investment property 14,525,327 10,429,445 - - - - - -

Others 40,259,278 72,993,585 716,583 714,982 - - 41,230 39,717

Total assets 4,202,085,578 3,976,369,498 1,586,075 1,586,618 179,277 149,425 576,447 540,848Liabilities and equityLiabilities

Current liabilities 4,080,275,056 3,835,419,974 416,565,215 416,565,190 591 592 219,072 221,268

Deposit liabilities 2,978,406,003 2,854,129,486 - - - - - -

Currency in circulation 797,451,937 692,657,077 - - - - - -

Securities sold under agreements to repurchase 293,904,980 278,496,737 - - - - - -

Trade and non-trade payables 449,700 449,700 191 166 591 592 100,267 85,703

Current portion of long-term debt

Others 10,062,436 9,686,974 416,565,024 416,565,024 - - 118,805 135,565

Non-current liabilities 81,039,619 75,636,292 1,412 105 - - - -Bills payableNotes payableBonds payable 22,198,052 20,537,695 - - - -Loans payable 57,661 52,792 - - - - - -

Accrued retirement benefits 1,479,812 1,501,127 - - - - - -Deferred creditsOthers 57,304,094 53,544,678 1,412 105 - - - -

Total liabilities 4,161,314,675 3,911,056,266 416,566,627 416,565,295 591 592 219,072 221,268

Equity 40,770,903 65,313,232 (414,980,552) (414,978,677) 178,686 148,833 357,375 319,580

Total liabilities and equity 4,202,085,578 3,976,369,498 1,586,075 1,586,618 179,277 149,425 576,447 540,848

BSP CB-BOL CIC PICCI

24


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AssetsCurrent assetsCash and cash equivalentsGross International reservesShort-term investmentsReceivables (net)Inventories (net)Prepayments and deferred chargesOthers

Non-current assets

Long-term receivables (net)

Long-term investments (net)

Property, plant and equipment (net)

Investment property

Others

Total assetsLiabilities and equityLiabilities

Current liabilities

Deposit liabilities

Currency in circulation

Securities sold under agreements to repurchase

Trade and non-trade payables


Others

Non-current liabilitiesBills payableNotes payableBonds payableLoans payable

Accrued retirement benefitsDeferred creditsOthers

Total liabilities

Equity

Total liabilities and equity

2012 20122013 (As restated) 2013 (As restated) 2013 2012 2013 2012

415,258,575 332,564,653 664,491 686,835 44,555 40,163 62,318 51,228119,377,860 99,734,270 434,932 547,523 40,519 36,126 23,735 21,187

136,878,030 80,238,107 6,441 6,646 - - - -159,002,685 152,592,276 220,042 130,175 4,036 4,037 38,076 29,802

- - 1,991 1,774 - - - -- - 1,085 717 - - 507 239- - - - - - - -

12,093,798 19,164,717 14,059 20,458 39,789 40,104 13,095 7,171

2,477,518 3,230,109 65 65 36,045 36,360 - 5,000

2,076,687 2,240,851 10,685 16,482 - - 1,145 1,491

1,034,357 567,302 - - - - - -

6,505,236.00 13,126,455 3,309 3,911 3,744 3,744 11,950 680

427,352,373 351,729,370 678,550 707,293 84,344 80,267 75,413 58,399

298,810,107 217,569,894 286,155 265,359 4,029 4,196 11,473 11,611

251,083,365 176,920,854 244,466 223,429 - - - -

- - - - - - - -

- - - - - - - -

3,274,805 2,897,871 422 1,050 4,026 4,196 11,312 11,450

40,526,554 35,041,742 - - - - - -

3,925,383 2,709,427 41,267 40,880 3 - 161 161

87,788,855 91,829,972 - - 3,580 3,580 19,461 8,63658,904,426 67,436,787 - - - - - -15,621,134 12,134,826 - - - - - -13,263,295 12,258,359 - - - - - -

- - - - - - 19,461 8,636- - - - - - - -- - - - 3,580 3,580 - -

386,598,962 309,399,866 286,155 265,359 7,609 7,776 30,934 20,247

40,753,411 42,329,504 392,395 441,934 76,735 72,491 44,479 38,152

427,352,373 351,729,370 678,550 707,293 84,344 80,267 75,413 58,399

DBP AAIIBP DBPMC DCI

25


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Non-current assets




Investment property

Others


Current liabilities

Deposit liabilities





Others



Total liabilities

Equity


2012 20122013 (As restated) 2013 2012 2013 (As restated) 2013 2012

215,466 278,483 6,714,904 6,672,515 223,842 244,628 32,249 17,93387,794 104,537 2,968,943 930,307 88,505 115,768 8,853 10,159

- - - - - - - -- - 1,770,131 894,352 - - - -

120,925 168,098 1,975,830 4,847,856 102,736 91,861 23,151 7,506138 214 - - 14,931 15,341 39 39

6,606 5,210 - - 17,670 21,658 194 1933 424 - - - - 12 36

1,028,238 1,201,708 14,204 18,377 269,167 240,470 72,979 88,832

974,634 1,198,684 - - - - - -

50,250 - - - 136,471 109,743 71,701 85,907

3,341 3,007 52 52 10,947 11,575 1,000 2,647

- - 13,672 13,672 118,938 112,673 - -

13 17 480 4,653 2,811 6,479 278 278

1,243,704 1,480,191 6,729,108 6,690,892 493,009 485,098 105,228 106,765

93,603 111,537 52,357 58,769 57,581 62,878 2,905 2,786

- - - - - - - -

- - - - - - - -

- - - - - - - -

3,432 2,849 5,237 3,645 48,067 54,434 2,905 2,786

44,736 45,808 43,633 43,633 - - - -

45,435 62,880 3,487 11,491 9,514 8,444 - -

527,936 647,366 392,698 436,331 75 147 - -- - - - - - - -- - - - - - - -- - - - - - - -

267,149 336,978 392,698 436,331 - - - -

- -260,787 310,388 - - 75 147 - -

- - - - - - - -

621,539 758,903 445,055 495,100 57,656 63,025 2,905 2,786

622,165 721,288 6,284,053 6,195,792 435,353 422,073 102,323 103,979

1,243,704 1,480,191 6,729,108 6,690,892 493,009 485,098 105,228 106,765

LBRDCDLC IGLF LCDFI

26


32/455



Non-current assets




Investment property

Others


Current liabilities

Deposit liabilities





Others



Total liabilities

Equity


20122013 2012 2013 2012 2013 (As restated) 2013 2012

280,108 689,291 1,180,342 696,239 170,187 164,455 3,606,269 3,663,489202,539 619,739 23,047 44,594 92,208 79,824 549,343 260,135

- - - - - - - -643 412 - - - - - -

76,092 68,219 1,146,999 645,012 33,816 37,055 3,052,156 3,400,625- - - - 38,887 39,883 2,057 856734 765 3,987 1,924 4,085 6,369 2,713 1,873100 156 6,309 4,709 1,191 1,324 - -

715,386 214,831 2,531,982 2,436,093 9,453 5,616 185,155 215,575

- - 2,406,292 2,319,316 - - - -

687,398 186,035 14,524 7,060 57 57 - -

24,293 25,603 33,118 35,170 4,746 909 10,964 11,160

- - 7,254 2,314 4,650 4,650 34,669 74,249

3,695 3,193 70,794 72,233 - - 139,522 130,166

995,494 904,122 3,712,324 3,132,332 179,640 170,071 3,791,424 3,879,064

159,693 101,315 1,706,748 1,315,106 69,474 66,344 578,537 154,054

- - - - - - - -

- - - - - - - -

- - - - - - - -

142,744 89,854 167,950 156,109 59,745 54,552 69,171 98,632

- - 1,509,378 1,122,700 - - - -

16,949 11,461 29,420 36,297 9,729 11,792 509,366 55,422

- - 728,893 605,147 - - 2,079,000 2,580,715- - 594,968 444,185 - - 2,079,000 2,580,715- - - - - - - -- - - - - - - -- - - - - - - -

- - - - - - - -- - 133,925 160,962 - - - -- - - - - - - -

159,693 101,315 2,435,641 1,920,253 69,474 66,344 2,657,537 2,734,769

835,801 802,807 1,276,683 1,212,079 110,166 103,727 1,133,887 1,144,295

995,494 904,122 3,712,324 3,132,332 179,640 170,071 3,791,424 3,879,064

LLC MSI PCFCLIBI

27


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Non-current assets




Investment property

Others


Current liabilities

Deposit liabilities





Others



Total liabilities

Equity


2012 20122013 2012 2013 (As restated) 2013 (As restated)

227,059 243,075 3,837,574 2,747,540 5,296,445 3,597,3465,896 2,844 3,002,307 2,146,154 96,535 135,103

- - - - - -- - - - 121,959 152,915

37,658 37,448 1,080 881 5,072,089 3,236,453181,801 201,013 1,711 4,488 - -

1,226 1,210 2,871 2,120 5,862 72,875478 560 829,605 593,897 - -

22,306 24,422 152,130,564 151,677,624 1,922,000 2,487,770

- - 20,361,539 35,557,665 344,636 533,781

- - 129,796,575 115,095,500 1,354,064 1,730,971

10,934 13,208 142,801 146,453 82,653 88,284

- - - - - -

11,372 11,214 1,829,649 878,006 140,647 134,734

249,365 267,497 155,968,138 154,425,164 7,218,445 6,085,116

1,066,002 1,039,408 2,975,296 5,555,389 6,562,698 5,502,832

- - - - 6,385,761 5,402,137

- - - - - -

- - - - - -

1,055,871 1,034,076 2,975,296 5,555,389 62,524 32,844

- - - - - -

10,131 5,332 - - 114,413 67,851

6,577 6,577 62,762,203 63,132,740 - -- - - - - -

6,577 6,577 62,762,203 63,132,740 - -

1,072,579 1,045,985 65,737,499 68,688,129 6,562,698 5,502,832

(823,214) (778,488) 90,230,639 85,737,035 655,747 582,284

249,365 267,497 155,968,138 154,425,164 7,218,445 6,085,116

NFC PDIC PPSBI

28


34/455

2012

Note 2013 As restated

Income 27 102,426,624 102,626,521

83,610,251 92,354,902

8,436,005 1,734,168

10,380,368 8,537,451

Expenses 28 116,368,023 190,039,333

80,745,987 107,323,072

14,162,695 13,285,959

12,459,585 10,401,014

8,423,363 8,356,655

576,393 50,672,633

TOTAL


Summary Statement of Profit or Loss and Other Comprehensive IncomeYear ended December 31, 2013


(In thousand pesos)

Business and service income

Gains and premiums

Others

Business expenses

Personal services

Maintenance and other operating expenses

Financial expenses

Others


35/455

Statement of Profit or Loss and Other

Comprehensive Income

2012 2012 2012

2013 As restated 2013 2012 2013 As restated 2012 As restated

Income 62,174,515 65,682,211 2,178 4,291 2,370 1,471 214,613 210,126

49,298,356 59,400,882 2,168 3,171 - - 200,038 192,516

5,598,245 - - - - - - -

7,277,914 6,281,329 10 1,120 2,370 1,471 14,575 17,610

Expenses 84,914,549 160,628,043 27,736 167,382 23,076 11,562 187,785 207,005

66,776,194 98,045,268 - - - - - -

10,246,244 9,364,820 901 183 2,529 1,365 62,083 64,851

7,892,111 2,842,104 4,586 16,528 20,547 10,197 125,702 142,149

- - - 682 - - - -

- 50,375,851 22,249 149,989 - - - 5

Net income/(loss) before subsidy (22,740,034) (94,945,832) (25,558) (163,091) (20,706) (10,091) 26,828 3,121

Subsidy income - - - - 44,725 28,410 - -

Net income/(loss) before tax (22,740,034) (94,945,832) (25,558) (163,091) 24,019 18,319 26,828 3,121

Income tax expense 2,312,246 53,220 - - 6,640 -

Net income/(loss) after tax (25,052,280) (94,999,052) (25,558) (163,091) 24,019 18,319 20,188 3,121

1,169,639 (38,203) - - - - - -

Total comprehensive income/(loss) (23,882,641) (95,037,255) (25,558) (163,091) 24,019 18,319 20,188 3,121




(In thousand pesos)

BSP

Other comprehensive income/(loss)

CIC PICCI


Gains and premiums

Others

Business expenses

CB-BOL

Personal services


Financial expenses

Others

30


36/455


37/455



Income

Expenses

Net income/(loss) before subsidy

Subsidy income

Net income/(loss) before tax

Income tax expense

Net income/(loss) after tax

Total comprehensive income/(loss)




(In thousand pesos)



Gains and premiums

Others

Business expenses

Personal services


Financial expenses

Others

2012

2013 2012 2013 2012 2013 2012 2013 As restated

75,257 72,702 182,139 232,070 200,367 220,395 25,454 29,578

56,481 68,765 176,500 231,301 198,156 217,958 23,481 24,999

- - 1 144 - 2 - -

18,776 3,937 5,638 625 2,211 2,435 1,973 4,579

173,993 86,693 17,770 22,457 169,023 194,852 27,110 24,304

- - - - 132,867 164,013 25,116 22,890

12,060 15,877 - - 17,590 14,839 - -

75,377 55,510 13,173 17,651 18,255 16,000 1,994 1,414

14,774 15,306 4,597 4,806 - - - -

71,782 - - - 311 - - -

- - - - - - - -

- - - - - - - -

(98,736) (13,991) 164,369 209,613 31,344 25,543 (1,656) 5,274

387 343 23,996 34,451 8,606 6,628 - -

(99,123) (14,334) 140,373 175,162 22,738 18,915 (1,656) 5,274

- - (28,476) (5,985) - - - -

(99,123) (14,334) 111,897 169,177 22,738 18,915 (1,656) 5,274

IGLF LBRDC LCDFIDLC

32


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Income

Expenses


Subsidy income


Income tax expense






(In thousand pesos)



Gains and premiums

Others

Business expenses

Personal services


Financial expenses

Others

2012

2013 2012 2013 2012 2013 As restated 2013 2012

115,939 115,309 506,632 519,963 225,596 182,856 290,801 344,073

87,607 85,976 453,396 461,880 225,596 182,856 286,745 342,672

- 228 - - - - - -

28,332 29,105 53,236 58,083 - - 4,056 1,401

31,192 30,959 303,477 333,633 209,631 173,556 240,699 259,308

- - 174,116 191,117 189,190 155,266 - -

16,843 15,995 17,149 16,139 11,547 7,115 41,198 39,958

14,349 14,915 37,924 39,605 8,373 10,810 90,609 89,129

- - 74,288 86,772 - - 108,892 130,221

- 49 - - 521 365 - -

- - - - - - - -

- - - - - - - -

84,747 84,350 203,155 186,330 15,965 9,300 50,102 84,765

17,203 16,767 44,421 40,739 4,477 3,291 15,384 21,462

67,544 67,583 158,734 145,591 11,488 6,009 34,718 63,303

- - 509 - - - - -

67,544 67,583 159,243 145,591 11,488 6,009 34,718 63,303

LIBI LLC MSI PCFC

33


39/455



Income

Expenses


Subsidy income


Income tax expense






(In thousand pesos)



Gains and premiums

Others

Business expenses

Personal services


Financial expenses

Others

2012 2012 2012

2013 As restated 2013 As restated 2013 As restated

139,371 107,725 18,287,095 17,169,468 628,001 527,147

138,808 106,899 17,035,800 16,339,139 511,582 457,182

- - - - 49,092 7,681

563 826 1,251,295 830,329 67,327 62,284

183,622 149,998 15,879,300 14,850,783 547,043 496,826

116,403 87,833 11,055,256 6,400,212 108,700 123,732

12,068 12,888 952,341 1,057,584 176,364 143,367

11,351 14,073 377,998 4,005,120 253,721 221,572

36,379 35,060 3,493,705 3,387,867 8,258 8,155

7,421 144 - - - -

(44,251) (42,273) 2,407,795 2,318,685 80,958 30,321

- - 3,410,855 3,210,066 - -

(44,251) (42,273) 5,818,650 5,528,751 80,958 30,321

- - 242,297 2,191,817 16,532 -

(44,251) (42,273) 5,576,353 3,336,934 64,426 30,321

- - - - (30,962) 7,463

(44,251) (42,273) 5,576,353 3,336,934 33,464 37,784

NFC PDIC PPSBI

34


40/455


Summary Statement of Changes in EquityYear ended December 31, 2013


(In thousand pesos)

2012


Government equityBalance at beginning of period 803,304 803,304

Additions/(deductions) - -

Balance at end of period 803,304 803,304

Share capital

Balance at beginning of period 56,378,322 36,168,110

Additions/(deductions) 45,834 20,210,212

Balance at end of period 56,424,156 56,378,322

Restricted capital

Balance at beginning of period 3,015,000 3,015,000

Additions/(deductions) - -

Balance at end of period 3,015,000 3,015,000

Appraisal increment

Balance at beginning of period 61,200 66,444

Additions/(deductions) - (5,244)

TOTAL


41/455

Cluster 1 - Banking and CreditStatement of Changes in EquityYear ended December 31, 2013(With corresponding figures for 2012)(In thousand pesos)

2012 2012 20122013 (As restated) 2013 2012 2013 (As restated) 2013 (As restated)

Government equityBalance at beginning of period - - - - - - - -Additions/(deductions) - - - - - - - -Balance at end of period - - - - - - - -

Share capitalBalance at beginning of period 40,000,000 20,000,000 - - 113,333 90,000 50,000 50,000Additions/(deductions) - 20,000,000 - - 5,834 23,333Balance at end of period 40,000,000 40,000,000 119,167 113,333 50,000 50,000

Restricted capitalBalance at beginning of period - - - - - - - -Additions/(deductions) - - - - - - - -Balance at end of period - - - - - - - -

Appraisal incrementBalance at beginning of period - - - - - - - -Additions/(deductions) - - - - - - - -Balance at end of period - - - - - - - -

Surplus reservesBalance at beginning of period 78,507,840 77,798,147 - - - - 2,000 2,000Additions/(deductions) (137,611) 709,693 - - - -Balance at end of period 78,370,229 78,507,840 2,000 2,000

Retained earnings/(deficit)Balance at beginning of period (45,138,904) 50,184,226 (414,978,677) (414,833,176) 35,500 17,181 267,580 253,710Additions/(deductions) (25,574,357) (95,323,130) (1,875) (145,501) 24,019 18,319 37,795 13,870Balance at end of period (70,713,261) (45,138,904) (414,980,552) (414,978,677) 59,519 35,500 305,375 267,580

Accumulated other comprehensive income/(loss)Balance at beginning of period (8,055,704) (8,017,500) - - - - - -Additions/(deductions) 1,169,639 (38,204) - - - - - -Balance at end of period (6,886,065) (8,055,704) - - - - -

Other Equity Instrument - Hybrid Tier 1Balance at beginning of period - - - - - - - -

Additions/(deductions) - - - - - - - -Balance at end of period - - - - - - - -

Share premiumBalance at beginning of period - - - - - - - -Additions/(deductions) - - - - - - - -Balance at end of period - - - - - - - -

TOTAL EQUITY 40,770,903 65,313,232 (414,980,552) (414,978,677) 178,686 148,833 357,375 319,580

BSP CB-BOL CIC PICCI

36


42/455


Government equityBalance at beginning of periodAdditions/(deductions)Balance at end of period

Share capitalBalance at beginning of periodAdditions/(deductions)Balance at end of period

Restricted capitalBalance at beginning of periodAdditions/(deductions)Balance at end of period

Appraisal incrementBalance at beginning of periodAdditions/(deductions)Balance at end of period

Surplus reservesBalance at beginning of periodAdditions/(deductions)Balance at end of period

Retained earnings/(deficit)Balance at beginning of periodAdditions/(deductions)Balance at end of period

Accumulated other comprehensive income/(losBalance at beginning of periodAdditions/(deductions)Balance at end of period

Other Equity Instrument - Hybrid Tier 1Balance at beginning of period

Additions/(deductions)Balance at end of period

Share premiumBalance at beginning of periodAdditions/(deductions)Balance at end of period

TOTAL EQUITY

2012 2012 20122013 (As restated) 2013 (As restated) 2013 (As restated) 2013 2012

- - - - - - - -- - - - - - - -- - - - - - - -

12,500,000 12,500,000 200,002 200,002 45,000 45,000 20,280 20,280- - - - - - - -

12,500,000 12,500,000 200,002 200,002 45,000 45,000 20,280 20,280

- - - - - - - -- - - - - - - -- - - - - - - -

- - - - - - - -- - - - - - - -- - - - - - - -

275,852 273,357 2,493 2,493 20,000 20,000 - -(47,767) 2,495 - - - - - -228,085 275,852 2,493 2,493 20,000 20,000 - -

24,661,646 24,211,392 (565,799) (534,146) 3,574 27,968 17,872 18,9202,779,573 450,254 (49,539) (31,653) 4,559 (24,394) 6,327 (1,048)

27,441,219 24,661,646 (615,338) (565,799) 8,133 3,574 24,199 17,872

(1,632,980) (1,889,091) - - 3,917 - - -(4,307,899) 256,111 - - (315) 3,917 - -(5,940,879) (1,632,980) - - 3,602 3,917 - -

6,524,986 6,524,986 - - - - - -

- - - - - -6,524,986 6,524,986 - - - - - -

- - 805,238 805,238 - - - -- - - - - -- - 805,238 805,238 - - - -

40,753,411 42,329,504 392,395 441,934 76,735 72,491 44,479 38,152

DBP AAIIBP DBPMC DCI

37


43/455









Other Equity Instrument - Hybrid Tier 1Balance at beginning of periodAdditions/(deductions)Balance at end of period


TOTAL EQUITY

20122013 2012 2013 2012 2013 (As restated) 2013 2012

- - 803,304 803,304 - - - -- - - - - - - -- - 803,304 803,304 - - - -

732,000 600,000 - - 138,375 105,163 15,000 15,000- 132,000 - - - 33,212 - -

732,000 732,000 - - 138,375 138,375 15,000 15,000

- - - - - - - -- - - - - - - -- - - - - - - -

- - - - 61,200 61,200 - -- - - - - -- - - - 61,200 61,200 - -

- - 202,846 190,187 105,000 105,000 20,618 20,618- - 11,396 12,659 45,000 - - -- - 214,242 202,846 150,000 105,000 20,618 20,618

(10,712) 8,229 5,139,576 5,002,573 117,498 104,724 68,361 63,087(99,123) (18,941) 105,341 137,003 (31,720) 12,774 (1,656) 5,274

(109,835) (10,712) 5,244,917 5,139,576 85,778 117,498 66,705 68,361

- (1) 50,066 56,052 - - - -- 1 (28,476) (5,986) - - - -- - 21,590 50,066 - - - -

- - - - - - - -- - - - - - - -- - - - - - - -

- - - - - - - -- - - - - - - -- - - - - - - -

622,165 721,288 6,284,053 6,195,792 435,353 422,073 102,323 103,979

IGLF LBRDCDLC LCDFI

38


44/455











TOTAL EQUITY

20122013 2012 2013 2012 2013 (As restated) 2013 2012

- - - - - - - -- - - - - - - -- - - - - - - -

300,000 300,000 485,552 485,552 100,000 100,000 - -- - - - - - - -

300,000 300,000 485,552 485,552 100,000 100,000 - -

- - - - - - 1,000,000 1,000,000- - - - - -- - - - - - 1,000,000 1,000,000

- - - - - - - -- - - - - - - -- - - - - - - -

266,000 230,000 - - - - - -(111,000) 36,000 - - - - - -155,000 266,000 - - - - - -

236,807 241,552 618,381 536,397 3,727 (2,282) 144,295 184,974143,994 (4,745) 64,095 81,984 6,439 6,009 (10,408) (40,679)380,801 236,807 682,476 618,381 10,166 3,727 133,887 144,295

- - (5,825) (5,825) - - - -- - 509 - - - -- - (5,316) (5,825) - - - -

- - - - - - - -- - - - - - - -- - - - - - - -

- - 113,971 113,971 - - - -- - - - - -- - 113,971 113,971 - - - -

835,801 802,807 1,276,683 1,212,079 110,166 103,727 1,133,887 1,144,295

LIBI LLC MSI PCFC

39


45/455











TOTAL EQUITY

2012 20122013 2012 2013 As restated 2013 (As restated)

- - - - - -- - - - - -- - - - - -

104,545 104,545 - - 589,235 549,235- - - - 40,000 40,000

104,545 104,545 - - 629,235 589,235

- - 3,000,000 3,000,000 - -- - - -- - 3,000,000 3,000,000 - -

- - - - - -- - - - - -- - - - - -

- - 63,895,318 60,295,282 - -- - - 3,600,036 - -- - 63,895,318 63,895,318 - -

(883,033) (825,764) 18,841,717 16,160,254 (48,523) 59,380(44,726) (57,269) 4,493,604 2,681,463 64,425 (107,903)

(927,759) (883,033) 23,335,321 18,841,717 15,902 (48,523)

- - - - 41,572 34,108- - - - (30,962) 7,464- - - - 10,610 41,572

- - - - - -- - - - - -- - - - - -

- - - - - -- - - - - -- - - - - -

(823,214) (778,488) 90,230,639 85,737,035 655,747 582,284

PPSBINFC PDIC

40


46/455



In thousand pesos

2012


Cash flows from operating activities

Cash inflows 269,491,208 124,641,319

Cash outflows (154,345,225) (320,256,839)

Net cash provided by (used in) operating activities 115,145,983 (195,615,520)

Cash flows from investing activities

Cash inflows 122,631,202 141,465,482

Cash outflows (202,364,567) (255,390,587)

Net cash used in investing activities (79,733,365) (113,925,105)

Cash flows from financing activities

Cash inflows 494,299,903 503,935,750

Cash outflows (387,209,809) (427,973,167)

Net cash provided by financing activities 107 090 094 75 962 583


Summary Statement of Cash Flows


47/455




In thousand pesos

2013 2012 2013 2012 2013 2012 2013 2012

(As restated)Cash flows from operating activities

Cash inflows 154,329,041 69,688,961 3,430 8,391 47,056 29,881214,547 184,691

Cash outflows (135,719,583) (302,993,343) (5,223) (2,385) (22,824) (12,241) (198,314) (180,005)

Net cash provided by (used in) operating activities 18,609,458 (233,304,382) (1,793) 6,006 24,232 17,640 16,233 4,686


Cash inflows - - - - - - - -

Cash outflows (3,181,539) (83,324,637) (351) (152) (1,123) (1,274) - -

Net cash used in investing activities (3,181,539) (83,324,637) (351) (152) (1,123) (1,274) - -


Cash inflows 474,607,165 481,341,271 - - 5,834 23,333 18,006 14,362Cash outflows (369,807,360) (417,998,445) - - - - (398) (3,613)

Net cash provided by financing activities 104,799,805 63,342,826 - - 5,834 23,333 17,608 10,749

Net increase (decrease) in cash and

cash equivalents 120,227,724 (253,286,193) (2,144) 5,854 28,943 39,699 33,841 15,435

51,659,192 (93,461,384) - - - - - -

Cash and cash equivalents, beginning of period (130,189,341) 216,558,236 93,795 87,941 147,921 108,222 422,774 407,339

CASH AND CASH EQUIVALENTS, END OF PERIOD 41,697,575 (130,189,341) 91,651 93,795 176,864 147,921 456,615 422,774


equivalents

CIC PICCI

Statement of Cash Flows

BSP CB-BOL

42


48/455




In thousand pesos


Cash inflows

Cash outflows

Net cash provided by (used in) operating activities


Cash inflows

Cash outflows

Net cash used in investing activities


Cash inflows

Cash outflows

Net cash provided by financing activities


cash equivalents

Cash and cash equivalents, beginning of period

CASH AND CASH EQUIVALENTS, END OF PERIOD


equivalents


2013 2012 2013 2012 2013 2012 2013 2012

(As restated)

86,236,631 29,565,959 50,929 74,259 665 14,023 66,559 57,451

(7,574,321) (3,527,943) (158,617) (89,182) (449) (3,101) (63,712) (56,566)

78,662,310 26,038,016 (107,688) (14,923) 216 10,922 2,847 885

- - 1,766 2,706 4,177 1,277 4,701 -

(61,951,790) (9,180,287) (6,669) (5,664) - (27,539) - -

(61,951,790) (9,180,287) (4,903) (2,958) 4,177 (26,262) 4,701 -

12,392,386 16,939,574 - - - - - -

(9,459,316) (4,213,681) - - - - (5,000) -

2,933,070 12,725,893 - - - - (5,000) -

19,643,590 29,583,622 (112,591) (17,881) 4,393 (15,340) 2,548 885

- - - - - - - -

99,734,270 70,150,648 547,523 565,404 36,126 51,466 21,187 20,302

119,377,860 99,734,270 434,932 547,523 40,519 36,126 23,735 21,187

DCIDBP AAIIBP DBPMC

43


49/455




In thousand pesos


Cash inflows

Cash outflows



Cash inflows

Cash outflows



Cash inflows

Cash outflows



cash equivalents




equivalents


2013 2012 2013 2012 2013 2012 2013 2012

76,778 66,838 2,980,398 432,247 177,483 215,170 1,892 9,850

(61,888) (65,043) (898,129) (1,098,398) (165,421) (206,750) (17,359) (5,048)

14,890 1,795 2,082,269 (666,151) 12,062 8,420 (15,467) 4,802

121,198 131,760 - 424 8,039 10,493 83,240 48,962

(81,931) (352,457) - - (37,906) (24,198) (69,080) (56,209)

39,267 (220,697) - 424 (29,867) (13,705) 14,160 (7,247)

- 282,000 - - - - - -

(70,901) (17,535) (43,633) (43,633) (9,458) (6,141) - -

(70,901) 264,465 (43,633) (43,633) (9,458) (6,141) - -

(16,744) 45,563 2,038,636 (709,360) (27,263) (11,426) (1,307) (2,445)

- - - - - - - -

104,537 58,974 930,308 1,639,668 115,769 127,195 10,160 12,605

87,793 104,537 2,968,944 930,308 88,506 115,769 8,853 10,160

DLC IGLF LBRDC LCDFI

44


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In thousand pesos


Cash inflows

Cash outflows



Cash inflows

Cash outflows



Cash inflows

Cash outflows



cash equivalents




equivalents


2013 2012 2013 2012 2013 2012 2013 2012

(As restated)

152,834 103,140 461,462 489,679 228,090 166,428 1,092,783 94,197

(33,094) (53,288) (925,613) (389,393) (206,671) (143,569) (258,076) (304,676)

119,740 49,852 (464,151) 100,286 21,419 22,859 834,707 (210,479)

52,267 240,162 - - 6 - 39,451 4,202

(554,656) (1,318) (174) (2,169) (4,264) (15,297) (2,110) (932)

(502,389) 238,844 (174) (2,169) (4,258) (15,297) 37,341 3,270

- - 2,224,300 1,843,800 - - 1,698,107 1,914,563

(34,551) (36,000) (1,781,522) (1,917,296) (4,777) - (2,280,947) (1,725,326)

(34,551) (36,000) 442,778 (73,496) (4,777) - (582,840) 189,237

(417,200) 252,696 (21,547) 24,621 12,384 7,562 289,208 (17,972)

- - - - - - - -

619,739 367,043 44,594 19,973 79,824 72,262 260,135 278,107

202,539 619,739 23,047 44,594 92,208 79,824 549,343 260,135

LIBI LLC MSI PCFC

45


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In thousand pesos


Cash inflows

Cash outflows



Cash inflows

Cash outflows



Cash inflows

Cash outflows



cash equivalents




equivalents


2013 2012 2013 2012 2013 2012

178,266 139,460 21,198,684 21,417,929 1,993,680 1,882,765

(171,872) (140,082) (5,531,763) (9,716,184) (2,332,296) (1,269,642)

6,394 (622) 15,666,921 11,701,745 (338,616) 613,123

- 94 122,030,204 140,998,660 286,153 26,742

(1,239) (1,844) (136,445,305) (161,750,323) (26,430) (646,287)

(1,239) (1,750) (14,415,101) (20,751,663) 259,723 (619,545)

- 5,982 3,314,105 1,530,865 40,000 40,000

(2,103) (4,039) (3,709,843) (2,007,458) - -

(2,103) 1,943 (395,738) (476,593) 40,000 40,000

3,052 (429) 856,082 (9,526,511) (38,893) 33,578

- - 71 (153) 325 3

2,844 3,273 2,146,154 11,672,818 135,103 101,522

5,896 2,844 3,002,307 2,146,154 96,535 135,103

NFC PDIC PPSBI

46


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CLUSTER 1 BANKING AND CREDIT

NOTES TO SUMMARY FINANCIAL STATEMENTS(Amounts in thousand pesos unless otherwise stated)

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of preparation of financial statements

The financial statements of sixteen (16) corporations included in this Report have beenprepared in accordance with Philippine Financial Reporting Standards (PFRS) whilethe remaining three (3) corporations adopted the generally accepted accountingprinciples (GAAP). Two (2) agencies adopted the New Government AccountingSystem (NGAS), namely, Credit Information Corporation (CIC) and National FoodsCorporation (NFC).

These financial statements have been prepared on a historical cost basis modified bythe fair value measurement of financial assets at fair value through profit or loss,

financial assets at fair value through other comprehensive income, available for saleinvestments and derivative financial instruments.

The specific accounting policies adopted by the Corporations included in this Reportand the standards, amendments and interpretations which became effective in 2013are discussed extensively in the individual Notes to Financial Statements.

Combined financial statements


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revaluation and translation of foreign currency denominated assets and liabilities are

credited to or charged against operations in the year in which the rates change.

Non-monetary items that are measured in terms of historical cost in a foreign currencyare 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 theexchange rates at the date when the fair value was determined.

Accrual Basis of Accounting

In accordance with Philippine Accounting Standard (PAS) 1, the financial statements,except for cash flow information, have been prepared using the accrual basis ofaccounting.

Significant accounting judgments and estimates

In accordance with PFRS and GAAP, the preparation of the financial statementsrequires the use of certain critical accounting estimates and assumptions that affect the

reported amount of assets, liabilities, income and expenses and disclosure ofcontingent assets and contingent liabilities. It also requires management to exercise itsjudgment in applying the Corporations accounting policies. Future events may occurwhich will cause the assumptions used in arriving at the estimates to change. Theeffects of any change in estimates are reflected in the financial statements as theybecome reasonably determinable.

Financial assets


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required to be maintained. A portion of these deposits is paid interest at rates

approved by the Monetary Board until April 5, 2012. Interest is accrued monthly andcredited quarterly to the respective demand deposit accounts. The fair value ofdeposits with no stated maturity is the amount repayable on demand.

Financial assets and liabilities are classified in the financial statements at theappropriate assets and liabilities accounts.

Sale and repurchase agreements

Repurchase and reverse repurchase transactions are used as monetary tools whenBSP engages in purchase and sale of government securities that intends to expand orcontract, for the time being, money supply in the market. Government securitiespurchased under agreements to resell are presented under Receivables while incomeearned from the transaction is reflected in the statement of profit or loss and othercomprehensive income as business and service income.

Securities sold under agreements to repurchase remain part of the government

securities inventory but are reclassified in the financial statements every end of themonth. The obligation to repurchase is recognized as a liability while the differencebetween the sale and repurchase price represents interest expense and is recognizedin the statement of profit or loss and other comprehensive income.

Impairment of financial assets

The Corporations assesses at each reporting date whether there is objective evidence


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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 otherassets or group of assets.

Allowance for probable losses

Allowance for probable losses is adequately set up at a level to provide for potentialreceivables, the collection of which is considered remote. The level of this allowance isbased on managements evaluation on past collection experience and other factorsthat may affect collectibility. Periodic evaluation of receivables is made to identify

potential accounts that require allowance.

Property, plant and equipment

Property, plant and equipment, except land, are stated at cost less accumulateddepreciation/amortization and impairment in value. Cost includes expenditure that isdirectly attributable to the acquisition of the items. Subsequent costs are included inthe assets carrying amount or recognized as a separate asset, as appropriate, when it

is probable that future economic benefits associated with the item will flow to theentities and the cost of the item can be measured reliably. All other repairs andmaintenance are charged to the statement of profit or loss during the financial period inwhich they are incurred.

Recognition of income and expenses

Income is recognized on accrual basis to the extent that it is probable that the


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The cash and cash equivalents, end of period, shown in the statement of cash flows ofthe BSP aggregating P41,697,575 for 2013 and negative P130,189,341 for 2012 werenot included in the above breakdown. The said balances are reflected as maincomponents of gross international reserves, short-term investments and receivablesreduced by the demand liabilities consisting of government demand deposits anddeposit of banks and other financial institutions. This is consistent with thepresentation of the accounts in the balance sheet of BSP.

Short-term investments classified as cash equivalents have maturities of three monthsor less from date of acquisition.

3. GROSS INTERNATIONAL RESERVES

This account is used solely by the Bangko Sentral ng Pilipinas and is composed of thefollowing:

2013 2012

Investment securities 2,783,445,559 2,744,317,114Deposits with foreign banks 492,572,996 198,802,059Gold 332,915,279 425,279,338IMF special drawing rights 57,852,003 52,928,624Loan to IMF 3,015,768 2,538,255Other cash balances 211,211 429,429

3,670,012,816 3,424,294,819


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Accumulated market losses (5,825) (5,825)

312,587,683 254,453,798

5. RECEIVABLES

This account consists of the following:

20132012

(As restated)Loans and discounts/loans receivable 169,005,695 164,188,823Loans and advances - local currency 94,891,206 118,009,437Other foreign currency receivables 94,628,416 59,867,701Due from administrator of funds 29,913,775 29,956,212Other receivables 12,116,017 15,097,558Finance lease receivable 1,153,273 742,225Due from Bangko Sentral ng Pilipinas 923,990 584,190Accounts receivable 523,491 406,364Loans and advancesforeign currency 378,055 1,307,503Derivative instruments in a gain position 368,889 1,521,056Accrued interest receivable 92,396 123,867Income receivable 33,438 37,942Service fee receivable 31,682 38,141Due from NGAs 4,499 3,273Receivablesdisallowances/charges 4,092 4,192T ithh ld i bl 3 664 2 430


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2013 2012

Currency inventory 882,136 1,034,592Merchandise Inventory 135,646 147,641Agricultural products and supplies inventory 86,217 86,664Gold for domestic sale 16,597 26,563Office supplies inventory 20,560 20,976Construction materials inventory 12,279 11,216Silver for refining 3,316 10,219Contract in progress 3,804 5,640

Spare parts inventory 3,776 3,952Other inventory 1,028 1332Allowance for obsolescence (7,217) -

8,489,310 9,006,578

7. PREPAYMENTS AND DEFERRED CHARGES


2013 2012Prepaid expenses 43,880 112,592Prepaid rent 1,497 1,456Deferred charges 1,446 1,446Prepaid tax 948 -Input tax 71 65


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Sales contract receivable 47,465 56,129Claims receivable - 43,525Others 81 247Allowance for probable losses (200,864) (210,118)

24,087,101 39,609,446

10. LONG-TERM INVESTMENTS

The details of this account are as follows:

20132012

(As restated)Investment securities at amortized cost 123,493,575 108,792,500Available-for-sale financial assets 46,679,408 46,890,473Financial assets at fair value through other

comprehensive income 6,303,000 6,303,000Held to maturity investments 2,094,470 1,662,882Equity investment in subsidiaries 1,788,930 1,656,930Equity investment in associates 168,439 168,439Investments in bonds 50,307 57Investments in real estate 20,454 20,370Equipment and other properties for lease 14,524 7,060Equity investment in joint venture 4,000 4,000Other investment 65 65All f d li i l f


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effective for periods beginning on or after January 1, 2005, investment propertiesvalued at cost were revalued, based on the latest available appraised values that werecarried over at the opening balance sheet as deemed cost. The followingcorporations/subsidiaries adopted the cost model in valuing its investment properties:

1. Bangko Sentral ng Pilipinas2. Development Bank of the Philippines3. LBP Resources and Development Corporation4. LBP Leasing Corporation5. Masaganang Sakahan, Inc.

6. Peoples Credit and Finance Corporation7. Industrial Guarantee and Loan Fund

For corporations that adopted the fair value model, the investment properties areinitially measured at cost, including transaction costs. After initial recognition, it ismeasured at fair value with any change therein recognized in the statement of profit orloss and other comprehensive income for the period.

The following corporations recorded significant amount of investment properties in2013 and 2012:

2013 2012Bangko Sentral ng Pilipinas 14,525,327 10,429,445Development Bank of the Philippines 1,034,357 567,302LBP Resources and Development Corporation 118,938 112,673Peoples Credit and Finance Corporation 34,669 74,249


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14. DEPOSIT LIABILITIES

These consist of current local and foreign deposits of the banks clients that earnannual fixed interest rates.

The details of this account are as follows:

20132012

(As restated)Special deposit 1,367,547,319 1,640,280,694

Deposits of banks and quasi banks -local currency 1,158,625,171 812,434,652

Government deposits - local currency 415,039,746 328,778,682Demand/savings/time deposit 257,469,126 182,322,991Deposits of the IMF and other financial

institutions - local currency 35,464,473 40,331,897Short-term deposits - foreign currency 1,973,760 32,526,990

3,236,119,595 3,036,675,906

15. CURRENCY IN CIRCULATION

This represents liability recorded at face value, for Philippine currency notes and coinsissued by BSP, fully guaranteed by the government of the Republic of the Philippines,in favor of the holder.


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DenominationQuantity Amount

2013 2012 2013 2012

23,994,807 21,827,629BSP commemorative

coins 3,293,505 3,258,957 182,704 182,348

Total coins in circulation 24,177,511 22,009,977

Total currency in circulation 797,451,937 692,657,077

16. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

On a temporary basis, BSP sells government securities (the underlying instrument)with an undertaking/commitment to buy back the same securities after a specifiedfuture date and at a predetermined rate.

This account is credited upon availment of a bank of the Reverse Repurchaseagreement window of the BSP and is debited upon pre-termination/maturity of saidavailment. As at December 31, 2013 and 2012, the account has a balance of

P293,904,980 and P278,496,737, respectively.

17. TRADE AND NON-TRADE PAYABLES

20132012

(As restated)Accounts payable and accrued expenses 6,246,071 7,112,958


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20132012

(As restated)Inter-agency payables 10,390 5,704Handling fee payable 6,546 4,383Performance/bidders/bail bonds payable 3,751 4,059Accounts payable - others 1,879 1,352Deposit to other banks 758 209Accounts payable - suppliers 63 11,735Others 101,260 78,657

431,461,523 429,409,001

19. BILLS PAYABLE

This represents domestic and foreign borrowings of the following corporations:

2013 2012Development Bank of the Philippines 58,904,426 67,436,787Peoples Credit and Finance Corporation 2,079,000 2,580,715LBP Leasing Corporation 594,968 444,185

61,578,394 70,461,687

The balance includes foreign borrowings to multilateral and bilateral funding agenciessuch as the World Bank, Asian Development Bank, Japan International CooperationAgency, ANZ Bank, Cobank Denver, and Kreditanstalt fur Wiederaufbau. Most of


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22. LOANS PAYABLE

20132012

(As restated)Loans payable-domestic 63,035,929 63,476,295Loans payable-foreign 450,359 489,123

63,486,288 63,965,418

The current portion of the Loans payable are classified in this Report under the Currentportion of long-term debt account amounting to P40,614,923 and P35,131,183 asat December 31, 2013 and 2012, respectively.

23. ACCRUED RETIREMENT BENEFITS

This account represents the government corporations provision for retirement benefitor past service pension cost and vacation/sick leave payable with balances ofP1,499,273 and P1,509,763 as at December 31, 2013 and 2012, respectively.

24. DEFERRED CREDITS


2013 2012D it l t t 182 810 246 734


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c) Restricted capital includes the Restricted Fund of PDIC and LCDFI in theamount of P3,000,000,000 and P15,000,000, respectively.

d) The appraisal increment pertains to the LBRDCs revaluation increment inproperty.

e) Surplus reserves include, among others, additional reserve for trust business ofDBP, reserve for expansion/renovation of field offices andupgrading/enhancement of telecommunications of LBP, net increment of BSPsmanaged fund and additional estimated insurance losses of PDIC.

f) The retained earnings/(deficit) includes the net income/(loss) of thecorporations (net of cash/property/stock dividends and other adjustments) andsurplus on revaluation of gold and silver recoveries, among others. Theincrease in deficit is attributed to the net loss of BSP, CB-BOL, AAIIBP, DLC,LCFDI and NFC for the period totalling P25,272,407, and declaration ofdividends by DBP, LBRDC, LIBI, LLC, MSI, PCFC and PDIC totallingP3,771,342.

g) Accumulated other comprehensive loss includes net unrealized gain/(loss) oninvestment in government securities of BSP, DBPMC, IGLF, LLC, and PPSBI,and other comprehensive loss of DBP.

h) Other equity instrument represents Hybrid Tier 1 capital securities of DBP.


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Total income for calendar years 2013 and 2012 (exclusive of subsidy) amounted toP102,426,624 and P102,626,521, respectively.

28. EXPENSES

Expenses are classified into business expenses, personal services, maintenance andother operating expenses, financial expenses, and other expenses, detailed as follows:

a) Business expenses include, among others, interest expense on local and foreign

currency financial liabilities of BSP of P66,776,194, interest expense on depositliabilities of DBP, PPSBI and AAIIBP totaling P2,320,216, and other businessexpense consists of lending cost, construction cost, commission, propertydevelopment expenses, currency printing and minting cost; and insurance andassistance financial losses such as deposit claims pay-out, rehabilitation cost andreceivership and liquidation expenses totaling P11,649,577.

b) Personal services consist of salaries and wages, personnel benefits contributions

to GSIS, HDMF, PHIC and ECC and employees terminal benefits, and otherbenefits. The breakdown is presented below:

20132012

(As restated)Salaries and wages 11,164,731 10,319,525Personnel benefits contributions 2,238,564 2,186,709Others 759,400 779,725


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20132012

(As restated)Information technology 14,786 13,689Impairment Loss 10,586 -Advertising expenses 7,382 9,942Directors' fees and allowances 5,898 4,503Fuel, oil and lubricants 4,811 4,817Amortization expense 4,211 3,361Provident fund contribution 3,217 3,082Management fees 3,167 2,910Commission 1,844 1,921Membership dues and contributions to

organizations 1,679 1,673Transportation and delivery expenses 1,592 3,085Business development expenses 1,151 1,135Interest expense 476 371Printing and binding expenses 420 419Training and scholarship expenses 412 266

Meetings and conferences 323 210Subscription expenses 271 283Cultural and athletic expenses 38 57Confidential, intelligence,

extraordinary and miscellaneous 36 92Others 2,455,045 2,736,513

12,459,585 10,401,014


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The following corporations reported other comprehensive income/(loss) for the years

2013 and 2012, as shown below:

2013 2012

Bangko Sentral ng Pilipinas 1,169,639 (38,203)LBP Leasing Corporation 509 -Development Bank of the Philippines (4,307,899) 256,111Philippine Postal Savings Bank, Inc. (30,962) 7,463Industrial Guarantee and Loan Fund (28,476) (5,985)DBP Management Corporation (315) 3,917

(3,197,504) 223,303

30. RESTATEMENT AND RECLASSIFICATION

In compliance with the provisions of PAS 8 which prescribes the criteria for selectingand changing accounting policies, changes in accounting estimates and corrections oferrors, material prior period errors on the financial statements of some corporationsincluded in this report were restated or corrected retrospectively by:

a) Restating the comparative amounts for the prior period(s) presented in whichthe error occurred; or

b) If the error occurred before the earliest prior period presented, restating thei b l f t li biliti d it f th li t i i d


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Authority. LIVECOR merged with National Livelihood Support Fund (NLSF) nowNational Livelihood Development Corporation (NLDC) by virtue of Executive Order

(E.O.) Nos. 681 and 681A. NFC is attached for supervision, control and policy/programcoordination with the Department of Agriculture by virtue of E.O. No. 233.

Schedule 1


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1 Bangko Sentral ng Pilipinas BSP - A. Mabini and P. Ocampo Streets, Manila Section 20, Article XII of Philippine

Constitution and RA No. 7653

2 Central Bank - Board of Liquidators CB-BOL BSP Rm. 610 EDPC Bldg. BSP Complex, Manila EO No. 169 as amended by EO No. 455

3 Credit Information Corporation CIC BSP Unit 004, Atlanta Center 31 Annapolis St.

Greenhills, San Juan City

RA No. 9510

4 Philippine International Convention

Corporation Inc.

PICCI BSP CCP Complex, Roxas Boulevard, Pasay City PD No. 520 as amended by PD No. 710

5 Development Bank of the Philippines DBP - 7/F DBP Bldg., Sen. Gil J. Puyat Ave. corner

Makati Ave., Makati City

RA No. 85

6 Al-Amanah Islamic Investment Bank of the

Philippines

AAIIBP DBP G/F Orient Mansion 118 Tordesillas St., Salcedo

Village, Makati City

RA 6848

7 DBP Data Center Inc. DCI DBP 4/FDBP Bldg., Senator Gil J. Puyat Avenue

corner Makati Avenue, Makati City

DBP Board Resolution No. 3172 and SEC

Registration No. 1077887

8 DBP Leasing Corporation DLC DBP 11th Floor NDC Bldg. 116 Tordesillas St.,

Salcedo Village, Makati City

Corporate Law/SEC Registration No.

128538

9 DBP Management Corporation DBPMC DBP 8th Floor DBP Bldg., Senator Gil J. PuyatAvenue corner Makati Avenue, Makati City DBP Board Resolution No. 3403/SECRegistration No. 102149

CORPORATE GOVERNMENT SECTOR

CLUSTER 1 - BANKING AND CREDIT

Summary Data of Agencies Under Cluster 1 - Banking and Credit

Agency Name Abbreviation

Parent /

Controlling

Entity

Address Enabling Law/Creation

65

Agency Name Abbreviation

Parent /

Controlling Address Enabling Law/Creation


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Entity

10 Industrial Guarantee and Loan Fund IGLF DBP 3rd Floor, DBP Bldg., Sen Gil Puyat Ave.,

corner Makati Avenue, Makati City

Counterpart Project Agreement No. 32

11 Land Bank of the Philippines LBP - Land Bank Plaza, 1598 M. H. del Pilar corner

Dr. J. Quintos Sts., Malate, Manila

RA 3844

12 LBP Countryside Development Foundation

Inc.

LCDFI LBP 12/F SSHG Law Centre Bldg., 105 Paseo de

Roxas St., Legaspi Village, Makati City


110790

13 LB Realty Development Corporation LBRDC LBP 24/F Land Bank Plaza, 1598 M. H.Del Pilar

corner Dr. J. Quintos Sts., Malate, Manila


61385

14 LBP Insurance Brokerage, Inc. LIBI LBP 12/F SSHG Law Centre Bldg. , 105 Paseo de



105764

15 LBP Leasing Corporation LLC LBP 15/F SSHG Law Centre Bldg., 105 Paseo de



111115

16 Masaganang Sakahan Inc. MSI LBP 6/F SSHG Law Centre Bldg., 105 Paseo de



59145

17 Northern Food Corporation NFC NLDC One Corporate Plaza, Arnaiz Avenue, Makati

City

SEC Registered

18 National Livelihood Development

Corporation

NLDC LBP One Corporate Plaza, Arnaiz Avenue, Makati

City

EO 681 and EO 681A

19 People's Credit and Finance Corporation PCFC LBP 395 Accelerando Bldg., Gil Puyat Avenue,

Makati City

AO No. 148/Memorandum Order No. 261

20

2013 afr goccs volume ii-a

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