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22011 ANNUAL REPORTPhilippine Bank of Communications1 2011 ANNUAL REPORT

Philippine Bank of Communications

2 Financial Highlights

3 Letter to Shareholders

5 Board of Directors

7 Directors'Profile

9 Senior Management

10 Management Directory

11 Risk Management Report

17 Corporate Governance

25 Statement of Management's Responsibility for Financial Statements

26 Financial Statements

35 Products and Services

37 Branch Directory

CONTENTS



fiNANciAL HigHLigHTS

NET iNcOME

587.4 27,607.638,676.71796.4 41,421.03 27,817.9

RESOURcES DEPOSiTS

OPERATiNg RESULTS

Total IncomeTotal ExpensesNet Income

Earnings Per Share

BALANcE SHEET

Total ResourcesLoans & Receivables, netNon-performing LoansDepositsCapital Funds

2011

3,975.9 3,179.5

796.4

4.61

41,421.0 10,521.5

1,268.9 27,817.9

3,433.2

2010

4,118.0 3,530.6

587.4

3.40

38,676.7 13,185.3

1,531.1 27,607.6

373.2



Dear Shareholders,

2011 was a milestone for Philippine Bank of Communications. The entry of ISM Communications Corporation (the ISM Group) as the Bank’s strategic third party investor injected a new focus and com-mitment to excellence in meeting today’s banking challenges.

Taking advantage of the extensive network of its various components, the ISM Group has revitalized our operations by generating more business for the Bank.

On July 26, 2011, the former Major Shareholders of the Bank, namely the Chung, Luy and Nubla Groups signed a Memorandum of Agreement (MOA) with the ISM Group involving the sale of their stake in the Bank. A new set of Board of Directors was elected following the MOA signing.

On December 27, 2011, the Chung and Nubla Groups signified their interest to reinvest in PBCom through an advance subscription to PBCom’s capital.

This reinvestment preserves the heritage of PBCom and is a vote of confidence in the renewed future of the bank.

The change in ownership structure also brought about bold initiatives in the improvement of the Bank’s asset quality and profitability.

Last year, we accelerated the remaining unamortized balance of our Special Purpose Vehicle (SPV) losses to pave the way for a stronger and healthier Balance Sheet position.

In the same year, the Bank changed its accounting policy from cost to fair value method to better reflect the value of its Investment Properties and recognize a more accurate, realistic and market driven valuation.

Consequentially, the Bank booked a total Fair Value Gain of P314.9 Million from said shift in policy.

LETTER TO SHAREHOLDERS

Eric O. rEctOCo-Chairman

rObErtO v. OngpinChairman

hEnry y. uyPresident & CEO

LETTER TO SHAREHOLDERS



financial results

In 2011, the Bank achieved the following:

• Net Income increased by 35.6% to P796.4 Million from P587.4 Million in 2010.• Total Resources grew by 6.9% to P41.4 Billion in 2011 from P38.7 Billion in 2010. • Total Deposits reached P27.8 Billion in 2011 from 2010’s P27.6 Billion. • Loans and Receivables remained steady at P10.5 Billion in 2011 from P13.1 Billion in 2010, as the Bank continues to streamline its loan portfolio mix to ensure quality loan assets.• Return on Assets improved to 1.99% from 1.54% in 2010. • Non-Performing Loans (NPL) ratio dropped signifi - cantly to 4.79% in 2011 from 9.25% in 2010. • NPL cover at year-end 2011 stood at 143.06% vs. 117.01% as of year-end 2010. • A Return on Equity of 41.84% was registered as of year end 2011.

With the positive results, the Bank is now well positioned to leverage its deposits and loans growth. We shall continue to expand our branch network to service our deposit clientele more effi ciently and effectively. Our efforts are currently geared towards generating low cost funds while we are in the direction of increasing the Bank’s total deposit level. Emphasis shall be given to the Bank’s accrual business, being our core income source, by adding consumer loans to its commercial loan port-folio mix as well as small and medium business loans. Quality credit risk management controls and compliance with policies shall definitely be given importance in these endeavors to avert possible non-performing loans. The Bank shall remain prudent in handling its liquidity and proactive in managing its capital base.

In 2011,we were able to achieve our gains because of the support and confi dence of our stakeholders. We thank the Board of Directors for their vision and guidance, and also acknowledge the dedication of our offi cers and staff for transforming our plans into results. Most important, we are immensely grateful to our clients and friends for their unwavering trust and loyalty.

ROBERTO V. ONGPINChairman of the Board

ERIC O. RECTOCo-Chairman

HENRY Y. UYPresident & CEO

5 2011 ANNUAL REPORTPhilippine Bank of Communications

BOARD Of DiREcTORS

ROBERTO V. ONgPiNChairman of the Board

gREgORiO T. YUDirector

ERic O. REcTOCo-Chairman

PATRick SUgiTO WALUjODirector

MARiO j. LOcSiNVice Chairman

EDgAR j. SiA iiDirector

HENRY Y. UYPresident and CEO

RALPH c. NUBLA, jR.Director

BOARD Of DiREcTORS

62011 ANNUAL REPORTPhilippine Bank of Communications

cARLOS g. cHUNgDirector

RAUL O. SERRANOIndependent Director

iMELDA M. SiNgzONIndependent Director

DAViD L. BALANgUEPDIC Consultant

TERESiTA A. SEEIndependent Director

ROBERTO M. MAcASAET, jR.Independent Director

DiREcTORS' PROfiLE

rObErtO v. Ongpin ChairmanChairman and Director since July 2011. Currently, he is also the Chairman of the following listed Corporations: Alphaland Corporation, Acentic GmbH (Germany), Atok-Big Wedge Co., Inc., ISM Communications Corporation, and Philweb Cor-poration; Director of San Miguel Corporation, Ginebra San Miguel, Inc. and Petron Corporation; Non-Executive Direc-tor of Shangri-La Asia (Hong Kong) and Forum Energy PLC (United Kingdom); and Deputy Chairman of the South China Morning Post (Hong Kong). Mr. Ongpin joined SGV & Co. in 1964 and was Chairman and Managing Partner of the firm from 1970 to 1979. He served as the Minister of Trade and Industry of the Republic of the Philippines from 1979 to 1986. He graduated cum laude in Business Administration from the Ateneo de Manila University, is a Certified Public Accountant and has an MBA from Harvard Business School.

Eric O. rEctO Co-ChairmanDirector since July 2011 and Co-Chairman since January 2012. He is the Vice Chairman and Director of Alphaland Corporation, Atok-Big Wedge Co., Inc., and Philweb Corporation; President and Director of Petron Corporation, ISM Communications Corpo-ration, Top Frontier Investment Holdings, Inc., and Q-Tech Alliance Holdings, Inc.; Director of the Manila Electric Company and San Miguel Corporation; and a Member of the Board of Supervisors of Acentic GmbH. Mr. Recto also served for three years as an Under-secretary of the Department of Finance of the Philippine Govern-ment, in charge of handling both the International Finance Group and the Privatization Office. Before his work with the government, he was the CFO of Alaska Milk Corporation and Belle Corpora-tion. Mr. Recto has a degree in Industrial Engineering from the University of the Philippines as well as an MBA from the Johnson School, Cornell University.

MAriO J. LOcSin Vice-ChairmanDirector since December 2011 and Vice-Chairman since January 2012. He is also currently the President and Director of Atok-Big Wedge Co., Inc., Director and Executive Vice President of ISM Communications Corporation, Director of Alphaland Corporation and Philweb Corporation, as well as the President of Alphaland Heavy Equipment Corporation, and Inpilcom, Inc. In the past, he served as the President and COO of Eastern Telecommunications Philippines, Inc., a Director of Belle Corporation, APC Group, Southwest Resources, Philippine Long Distance Telephone Co. and Pilipino Telephone Co., as well as a Director, Executive Vice President and COO of Philippine Airlines. He holds a degree in LIA-Honors Math from De La Salle University and an MBA from the University of San Francisco.

hEnry y. uy DirectorDirector since 1986 and President and CEO since 2010. He has been with the Bank since 1970. He is also the President of PBCom Finance Corporation since 2008 and Vice President of Echague Realty Corporation since 1992. He was President of the Bank in 1999, Senior Vice President in 1986 and Executive Director in 2004. He graduated with a degree in Bachelor of Science in Business Administration (Magna Cum Laude) in 1970 and an MBA from De La Salle University in 1975.

grEgOriO t. yu DirectorDirector since July 2011. At present, Mr. Yu is the Chairman of CATS Motors Inc.; Vice Chairman of Sterling Bank of Asia, Director and Treasurer of CMB Partners, Inc.; Director of Iremit Inc., Jupiter Systems, Inc., National Reinsurance Corporation of the Philippines, Philequity Fund, and Prople BPO Inc.; and a Trustee of GSIS. He was formerly President and CEO of Sinophil Corporation, Belle Cor-poration, Tagaytay Highlands International Golf Club, Inc., Tagaytay Midlands Golf Club and the Country Club at Tagaytay Highlands; Vice Chairman of APC Group and Philcom; Director of Interna-tional Exchange Bank, Nexus Technologies, Inc., R.S. Lim & Co., and iVantage Corporation; Director for Corporate Finance of Chase Manhattan Asia in Hong Kong; and a Vice President, Area Credit for The Chase Manhattan Bank Regional Office in Hong Kong. He received his MBA from the Wharton School of the University of Pennsylvania and graduated Summa Cum Laude with a degree in Economics (Honors Program) from De La Salle University.

pAtrick SugitO WALuJO DirectorDirector since July 2011. Mr. Walujo is co-founder and co-managing director of Northstar Equity Partners, a leading private equity fund with a primary focus on Indonesia. Northstar is the Indonesian Partner of TPG Capital, one of the world’s leading private equity funds. Before co-founding Northstar, Mr. Walujo was Senior Vice President of Pacific Century Group in Tokyo, Japan. Prior to working at Pacific Century Group Japan, he was an associate at the investment banking division of Goldman, Sachs & Co. in London and New York. Mr. Walujo holds a degree in Bachelor of Science from Cornell University and is Ernst & Young Indonesia’s 2009 Young Entrepreneur of the Year.

EDgAr J. SiA ii DirectorDirector since July 2011. Mr. Sia is the founder of the Mang Inasal food chain. At present, Mr. Sia is involved in the following compa-nies as Chairman and CEO: Injap Investments, Inc., Injap Land Corporation and People’s Hotel Corporation. He also sits on the Board of Directors of Jollibee. He was awarded the Small Busi-ness Entrepreneur award in 2010 by the Ernst & Young for best demonstrating management excellence in a business with assets less than Php100 million.



DiREcTORS' PROfiLE

rALph c. nubLA, Jr. DirectorDirector since 1976. Mr. Nubla is one of the Directors of the PBCom Finance Corporation, and President of R. Nubla Securities and Echague Realty Corporation. He was Senior Vice President in 1982, Vice Chairman in 2000, Executive Director in 2004 and Chairman of the Board in 2010. He was also President of CNC Investment Inc. He graduated from Ateneo de Manila University in 1972 with a Bachelor of Science degree. cArLOS g. chung Director Director since 1997. He is the President of Supima Holdings, Inc., and Director of Hambrecht & Quist (Phils.), La Suerte Cigar & Cigarette Factory, Century Container Corporation, Bicutan Container Corporation, Tosen Foods Corporation, and PBCom Finance Corporation. He is also a member of the Board of Trustees of Xavier School Inc., and an incorporator of Im-maculate Concepcion Academy (Greenhills), ICA Scholarship Foundation, Mother Ignacia National Social Apostolate Cen-ter, Seng Guan Temple and Kim Siu Ching Family Association. In the past, he was an Executive Director of the Bank in 2004. He was a Director of Textile Mills Association and Federation of Philippine Industries. He obtained a Bachelor’s degree in Economics from De la Salle University in 1972 and holds an M.B.A. major in Finance from the University of Southern California in 1974.

iMELDA S. SingZOn Independent DirectorDirector since 2010. Ms. Singzon is currently the Executive Vice President of Philippine Deposit Insurance Corporation. She was a former First Senior Vice President of PNB, the Vice President of New York-based First Philippine Fund, a Member of the Board of Directors of various government corporations such as National Food Authority, Livelihood Corporation, Ferti l izer and Pesticides Authority and some PNB sub-sidiaries. She graduated with a degree in BS Statistics and has a Post-Graduate Certificate (with distinction) in Development Economics from the University of the Philippines.

tErESitA A. SEE Independent DirectorDirector since 2010. Ms. See is the Chairman of Philippine National Police Foundation. She was also founding Presi-dent of Kaisa Para Sa Kaunlaran and Kaisa Heritage Center; Secretary Treasurer of International Society for the Study of Chinese Overseas (ISSCO); Visiting Lecturer at Ateneo de Manila University; Spokesperson of Citizens Action Against Crime (CAAC); and the Founding Chairperson of Movement for Restoration of Peace and Order (MRPO). She obtained her degree in Political Science from the University of the Philippines in 1971.

rObErtO M. MAcASAEt, Jr. Independent DirectorDirector s ince 2010. He is the President and CEO of Associated Medical & Clinical Services Inc. He is also Director of Maxicare Healthcare Corporation and Coconut Industry Investment Fund (CIIF). He was the Vice President of Citadel’s Holdings Inc. from 2001 to 2005 and held various positions in senior management with Fil Hispano Holdings Corporation (formerly Fil Hispano Ceramics Inc.) from 1992 to 2001. He graduated with a degree of Bachelor of Arts from Tufts University in 1981 and obtained a Master of Business degree from Northern University in 1987. rAuL O. SErrAnO Independent DirectorDirector since 2010. He was a member of the Board of Trustees of the Government Service Insurance System in 2005. He held various managerial positions in Solidbank Corporation and Allied Banking Corporation until retirement. He was the Past President of the Rotary Club of Diliman District 3780 and UP Village Homeowners’ Association. He is a civic and religious leader in the community. He graduated from Ateneo de Naga University with a degree of B.S.C. Finance in 1960.

DAviD L. bALAnguE PDIC ConsultantPDIC Consultant since 2010. Mr. Balangue is the former Chairman and Managing Partner of Sycip, Gorres, Velayo (SGV) & Co. He is a director of Trans-Asia Oil and Energy Development Corporation and Manufacturers Life Insurance Co. (Phils.), Inc.; Chairman of the Financial Reporting Standards Council and Coalition against Corruption, Member of the Board of Trustees of the Makati Business Club and Acting Vice Chairman of NAMFREL.

SENiOR MANAgEMENT


hEnry y. uyPresident & CEO

ALEx LuiS M. pESigAnRetail Banking Segment

rAuL c. DiAZTrust Group

JAMES y. gOBranch Banking Segment

rObErtO b. rEyESProducts & SalesDivision

MArriAnA h. yuLOAssistant to theChairman

AngEL M. cOrpuSTreasury Segment

AntOniO S. chuAInformation Systems Group

JuAn b. EStiOkORisk ManagementGroup

EvAngELinE y. QuACorporate Banking Group 1

EriEnE c. LAOInformation Systems Group

EvELyn D. vinLuAnInternal Audit Group

rODOLfO MA. A. pOnfErrADACorporate Secretary

fELiMOn f. bALtAZAr iiiDomestic TreasuryDivision

LEiLA L. DEJAnBranch Service Group

gLOriA ELEnA h. gOCommercial Banking Group 1

ALy D. rEyESBusiness Development & Corporate Communications

cArOLinA O. yuTreasury Marketing Unit - Binondo

MAxiMO n. MADriDEJOS, Jr.Special Relations Consultant

MANAgEMENT DiREcTORY


prESiDEnt & cEO

Henry Y. Uy

ASSiStAnt tO thE chAirMAn

Marriana H. Yulo

cOrpOrAtE SEcrEtAry

Rodolfo Ma. A. Ponferrada

SpEciAL rELAtiOnS cOnSuLtAnt

Maximo N. Madridejos, Jr.

ExEcutivE vicE prESiDEnt

Angel M. Corpuz

SEniOr vicE prESiDEntS

Felimon F. Baltazar IIIAlex Luis M. Pesigan

firSt vicE prESiDEntS

Antonio S. ChuaLeila L. DejanRaul C. DiazJuan B. EstiokoGloria Elena H. GoJames Y. GoEriene C. LaoEvangeline Y. QuaAly D. ReyesRoberto B. ReyesEvelyn D. VinluanCarolina O. Yu

vicE prESiDEntS

Jason J. AlbaFroilan Miguel G. AlcantaraEnrique R. Bartolome, Jr.Editha N. BautistaAntonio Q. BeltranVilma V. BugiaMary Jane T. CuaticoRose Margaret T. CuaticoRomeo G. Dela RosaDanilo DominguezEddie Abel C. DorotanMarina U. FranciscoMa. Rosario Lourdes S. GarciaAlmario A. HilarioRainelda R. LastimosaMa. Socorro I. SantosDeogracias A. Vicente

ASSiStAnt vicE prESiDEntS

Hermelita H. AmbrocioElpidio R. Angeles, Jr.Richard O. ArvisuVirginia P. BasacaRicardo M. BondocConcepcion D. CaparasIrwyn D. ChanMaria Rosario C. GeronimoMichael Gilbert M. GianzonJulie N. GoLauro D. GutierrezRomeo L. IbarraRodrigo D. Joaquin, Jr.Annabel C. LeeLillian L. LimMarie Khristine C. PamaKristeen Ella M. ReyesMelanie B. Ricasio Jesus Romeo A. RiveraAlicia S. Yu

“ “

RiSk MANAgEMENT REPORT

The Bank realizes that there can be no compromise to risk control at any time. It develops an awareness and risk/return consciousness in order to protect deposits, preserve and properly allocate capital and ensure an adequate return in capital.


The Philippine Bank of Communications’ risk management principles embody a process of avoiding, calculating or accepting risks while pursuing its business objectives: to protect its assets and realize its growth potential for the benefi t of its shareholders and clients.



The Bank has complied in full with all its regulatory capital requirements.

The regulatory qualifying capital of the Bank consists of Tier 1 (core) capital, which is comprised of paid-up common and preferred stock, surplus including current year’s profit and surplus reserves less required deductions such as unsecured credit accommodations to directors, officers, stockholders and related interests, deferred income tax and significant minority investments in banks and other financial allied undertakings. The other com-ponent of regulatory capital is Tier 2 (supplementary) capital, which includes appraisal increment reserves, as authorized by the monetary board and general loan loss provision. The Bank is in the process of mobilizing its capital restoration program. Earlier in 2011, it selected ISM Communications Corporation as its Strategic Third Party Investor, allowing ISM to acquire 97% of the Bank’s outstanding capital. PBCom’s capital was further strengthened when an additional Php 2.37 billion was invested into it at the end of 2011. These funds will be allocated to cover quantifiable and unquantifiable risks inherent in the current condition and strategic prospect of the bank. Moreover, an additional P 400 million will be coming in the first quarter of 2012.

The Bank’s capital charge for credit risk is computed at 10% of credit risk-weighted on- and off- balance sheet assets. Risk weights of on-balance sheet assets are based on third party assessments of the individual exposure given by eligible external credit assessment. For off-balance sheet assets, the risk weights are cal-culated by multiplying the notional principal amount by the appropriate credit conversion factor.

Market risk capital charge is computed using the stan-dardized approach. Under this approach, capital for market risk is equivalent to 10% of market risk-weighted assets that cover interest rate, equity and foreign expo-sures of the bank.

The Bank computes operational risk capital charge using the basic indicator approach, under which capital

cApitAL MAnAgEMEnt

The Bank actively manages its capital base to cover risks inherent in the business. The amount of capital is monitored using, among other measures, the rules and ratios established by the Basel Committee on Banking Supervision and adopted by the Bangko Sentral ng Pilipinas (BSP) in overseeing the Bank.

The primary objective of the Bank’s capital management system is to ensure that the Bank complies with regulatory capital requirements under BSP’s Revised Risk-Based Capital Adequacy Framework and those of the Financial Assistance Agreement with the Philippine Deposit Insurance Corporation (PDIC). In managing its capital, the Bank can maintain strong credit ratings and healthy capital ratios to support its business and to maximize shareholders’ value.

Moreover, the Bank has implemented an Internal Capital Adequacy Assessment Process (ICAAP). The ICAAP methodology adopted by the bank involves, first, an assessment of whether the risks covered by the Framework – credit risk, market risk and opera-tional risk – are fully captured; second, an assessment of other risks the Bank is exposed to which are not fully captured and covered under the Framework; and finally, an assessment of how much capital to allocate against these other risks.



unable to meet its financial obligations in any currency. The Bank employs liquidity ratios, liquidity stress testing, a liquidity gapping report and Maximum Cumulative Outflow limit to manage liquidity risk. Market stress testing results are also applied to the Liquidity Gap report to measure impact on future cash flows.

Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or fair values of financial instruments. The Bank follows a prudent policy in managing its assets and liabilities so as to ensure that the exposure to fluctuations in interest rates is kept within acceptable limits.

A substantial portion of the total loan portfolio is in short-term placements (less than one year), while majority of its medium-term placements are on a floating-rate basis. Floating rate loans are repriced periodically with reference to the transfer pool rate which reflects the Bank’s internal cost of funds. As a result of these factors, the Bank’s ex-posure to interest rate fluctuations and other market risks is significantly reduced. The Bank, in keeping with industry practice, aims to achieve stability and lengthen the term structure of its deposit base, while providing adequate liquidity to cover transactional banking requirements of customers. Furthermore, reports on the monthly Rate Reasonability for the PHP-GS and USD ROP positions have been successfully automated.

The group accomplished the following in 2011:

• Conducted break-even analysis of incremental increases in the loan portfolio of the bank.

• Developed a risk model to simulate global market conditions and their impact to ROP performance

and linkage to RBCAR.

• Established and modelled HypotheticalBack-testing Methodology.

• Conducted risk assessment inherent in the bank strategic plan of realizing the gain in 10-34 Government Securities that were held as collateral to PDIC loan.

for operational risk is equal to 15% of the bank’s average gross income over the previous three years of positive annual gross income.

trEASury riSk MAnAgEMEnt

Market risk arises from adverse fluctuations in the market value of financial instruments in both on- and off-balance sheet items. The Bank employs Value-at-Risk (VaR) using a 99% one-tailed confidence level to measure market risk, while a regular back testing program is conducted to ensure an accurate and ro-bust VaR model. In addition to this, stress testing is practiced to determine the earnings impact of extreme market movements not captured by VaR calculations. Moreover, a system of risk limits that reflect the Bank’s level of capital, expected returns and the overall risk appetite is utilized to manage market risk. These limits include the VAR limit, Nominal Position limit, Stop-loss limit and Management Action Trigger limit. Guidelines & process flow for deriving market and liquidity risk limits have been established. These guidelines link the limits to the current condition, earnings prospect, and capital of the bank. Furthermore, the Bank has also adapted BSP’s Risk Assessment System to assess its market risk.

Credit risk is the risk to earnings when the counterparty is unable to pay obligations on time and in full as previously contracted. The Bank has established an internal risk rating system to determine the soundness of a financial institution before credit lines are granted. Once the credit facilities are granted, a system of monitoring credit limits is employed to manage credit exposures.

Liquidity risk refers to the possibility that the Bank will be

portfolio. The Bank also monitors large exposures and credit risk concentrations in accordance with BSP Circular 414.

The credit risk management function involves identifying inherent risks related to transactions or processes executed with respect to all lending-related activities. In line with this function, the Risk Management Group employs the Key Risk Indicators Report to monitor the risk profile of the Bank’s business units (e.g. lending and support groups) and to establish internal loss and key risk indicator databases.

Periodic assessment of the loan portfolio quality and credit process is conducted through a robust credit review process. An assessment of the loan portfolio is done through periodic stress testing of loan accounts. Among the tools used are:

a. Rapid Portfolio Review (RPR) – is a form of stress testing meant to cover significant developments in the credit environment that can affect the borrower’s business and ultimately the quality of the Bank’s portfolio within a 12-month scenario. It allows management to determine the capital impact for the excessive large loan exposure given to corporate borrowers.



• Established guidelines and processes in deriving market & liquidity risk limits anchored to the bank’s current condition, earnings prospect, and prevailing capital.

• Amended the Market Risk Management process to include VAR model validation.

• Amended the Liquidity Risk Management process and policies to incorporate the following:

a) Inclusion of Liquidity Risk Core Areas of Manage-ment in Treasury Risk Management Process Manual.

b) Revision in Liquidity Stress Testing Policy to link the assessment of the stress testing result to the bank’s Liquidity Contingency Funding Plan.

• Established Risk Limit Utilization Threshold / Trigger Points.

• Established market & liquidity risk capital charge assessment & derivation to supplement the risk not captured in Risk Based Capital Adequacy Ratio framework.

• Participated actively in modelling the bank’s stresstesting.

• Developed a framework for defining the bank-wide risk appetite.

crEDit riSk MAnAgEMEnt

The Bank employs a risk rating system to assess and measure the diverse risk factors of a borrower. The system is designed to reveal the overall risk of lend-ing and serves as a tool for making credit decisions, evaluating the credit risk of potential and existing borrowers, and pricing.

The management of the credit portfolio is subject to prudential limits which serve to control the magnitude of credit risk exposures and preserve the quality of the



b. Specific Impairment Test - is performed on classified loan accounts whose outstanding principal balances and booked Accrued Interest Receivable (AIR) fall within selected criteria. The computation is based on the carrying amount of outstanding loan and booked AIR less net present value of the expected collection discounted at the loan’s original interest rate.

c. Collective Impairment Test – is performed on loan accounts with no signs of impairment. This may be compared with the general loan loss provi-sioning of BSP.

Apart from those mentioned above, Credit Risk Manage-ment also accomplished the following in 2011:

• Created the guidelines for both the Specific Impairment Test and Collective Impairment Test

• Updated the Risk Profiles of Credit units

• Reconditioned content of its Key Risk Indicators Report

• Realigned credit-related details in the Approval Limits/Authorities Handbook

• Determined various computational requirements during BSP and external audit examinations.

OpErAtiOnAL riSk MAnAgEMEnt

Operational risk arises from inadequate or failed internal processes, people, systems and external events. The Risk Management Group’s solution for controlling operational risk is an effective system of internal controls approved by the Board, and in which all employees of the Bank understand, appreciate and participate. Risk is inherent in the banking industry. Therefore, the challenge is to enable the organization’s growth while limiting risk exposure.

The risk management system maintains operational risk identification, assessment, monitoring, control and

reporting processes that pervade the whole banking operation. The Risk Management Group implements mechanisms that facilitate the flow of information on in-ternal control compliance from individual units up to the management level. The directorship, through the Risk Management Committee, delineates the applicable and acceptable levels of risks as a guideline in conducting the business of banking.

The Risk Management Group utilizes procedures and tools like Risk Assessment Surveys, Risk Mapping and Risk Profiles that primarily tackle information gathering on the level of compliance to internal and external regulations. These are complemented by a system for reporting crimes and losses, policies on whistle-blowing, Risk Control Self-Assessments and a widely-known report called the Operational Losses and Key Risk Indicators Report that address the reporting and monitoring elements of operational risk management. All these combined with data analyses result in policy improvements or modifications to suit the changing business climate and adjust the risk appetite of the company.

A summary of the more significant projects and under-takings in 2011 follows:

• Completed the latest cycle of the Continuing Education Program.

• Enhanced all implements used to observe the risk management process.

• Enhanced the existing Risk Profile for Head Office and Information Technology Units to consider pro-cess mapping in the risk identification phase, and included operational risk factors for systems and people components and detailed loss event type classification.

• Rolled-out Risk Profiles for branches that should recognize each branch and region and the whole branch banking network’s current operational status, and assisted in identifying future concerns based on business plans.



• Performed a periodic review of the technology risk management framework.

• Completed a Business Continuity Plan awareness seminar to update and familiarize all bank employees with the process.

• Added policies for new services and regulations; recommended changes to existing ones to reinforce key internal control measures.

• Discussed risk issues and implementation of process enhancements with operating units.

truSt riSk MAnAgEMEntTrust risks pertain to losses that can occur when the Trust Group fails to fulfill its fiduciary responsibilities to the trustors/principals. Having account management, trading, investment and operations functions, Trust is also exposed to the major risk areas of Market, Credit and Operations.

Risks arising in the performance of trust duties and obligations are addressed through the Trust Committee and Risk Management Group. The Trust Committee performs oversight functions on trust services. The Risk Management Group spearheads the effective imple-mentation of the risk management process through:

a. Operational Loss and Key Risk Indicators Reports to analyze, manage and monitor the risk profile of trust;

b. BOD-approved Trust Risk Management Policies to guide Trust in managing risk associated with organization, account management, trading, investment and operations functions;

c. Stress testing of UITF portfolio to measure the earnings impact to market movements that are considered ‘extreme” but possible; and,

d. Conducting seminars and meetings with concerned risk-takers to effectively promote risk awareness.

PBCom is undergoing significant changes that will certainly affect and reflect on its risk management style. Taking a proactive stance, the Bank’s Risk Management Group will move towards carrying out its tasks more vigorously in the face of anticipated advancements in organizational structure, methodolo-gies and philosophies.



cORPORATE gOVERNANcE

““ “Good corporate governance requires an overriding commitment to a culture of integrity that covers all aspects of board and management conduct.

BOARD MEETINGS IN 2011

Roman Anthony V. Azanza* 7/7Felix G. Chung* 7/7Philip G. Chung* 7/7Johnny O. Cobankiat* 5/7Victor P. Lazatin* 6/7Enrique T. Luy* 5/7Ernesto T. Luy* 7/7Joseph C. Tan* 6/7Carlos G. Chung 12/13Roberto M. Macasaet, Jr. 9/13Ralph C. Nubla, Jr. 13/13Teresita A. See 10/13Raul O. Serrano 13/13Imelda S. Singzon 13/13Henry Y. Uy 13/13Roberto V. Ongpin** 6/7Eric O. Recto** 6/7Edgar J. Sia II ** 6/7 Patrick Sugito Walujo** 3/7Gregorio T. Yu** 6/7Mario J. Locsin*** 3/3Seumas J. Dawes**** 1/5Reynaldo G. David***** 6/6

* Up to July 26, 2011** Effective July 26, 2011*** Effective October 27, 2011**** Effective July 26, 2011 up to Nov. 24, 2011***** Effective July 26, 2011 up to Dec. 9, 2011




Compliance starts with the Board of Directors and senior management. By setting the tone at the top, the Bank’s leadership creates an ethical atmosphere in the workplace. Extending down to all its Offi cers and Staff, it promotes a culture of professional probity, where one is treated fairly, held accountable for his ac-tions, and conducts his business with transparency.

Through its Code of Ethics and Code of Conduct, the Bank communicates what is expected of all its employees.

The Codes clearly state the Bank’s management phi-losophy and compliance standards consistent with its ethics policy. They are given to every employee, who is then required to read and sign in agreement.

In line with this, the Bank has established a whistle-blower protection policy, thus allowing employees to come forward and report any misconduct or irregulari-ties while retaining anonymity.

By adhering to the Corporate Governance Manual and the Code of Conduct, Philippine Bank of Communica-tions ensures that the long-term interests of our share-holders, as embodied in our fi ve core values: Integrity, Excellence, Professionalism, Loyalty and Trust, are best served.

The Board of Directors, being the governing body duly elected by the stockholders, are required to meet reg-ularly on a monthly basis. In 2011 the Board had 13 meetings (12 regular meeting and 1 special meeting).




The Board has created the following committees to assist in corporate governance:

The Governance Committee acts as the primary arm of the Board of Directors in determining the structure, charter, policies and practices of the Board and its com-mittees. The Committee is composed of four members of the Board of Directors under the chairmanship of an independent director. The Board of Directors appoints the members of the Committee.

Its mandate covers the organization of the Board of Directors, screening of new members, assessing the propriety of business strategies, and determining how the corporation operates, makes decisions and builds its relationships with shareholders and the public at large. The corporate governance function ensures that accountability is enforced at all levels and that the Bank always acts in the best interests of the company, its shareholders and stakeholders. The committee en-sures that such purposes are met by creating a climate of transparency in the Bank where shareholders are fully informed of business decisions and long-term business plans. One of the primary responsibilities of the committee is to evaluate and recommend amendments to the Articles of Incorporation and By-Laws and to set corporate governance guidelines including, but not limited to:

• Size (number of members) of the Board• Criteria for membership (e.g. Qualifi cations,

Stock Ownership, Diversity)• Mix of management and independent directors• Prevention of confl icts of interest• Compensation and benefi ts program of managing

and non-managing members of the Board and Senior Management

• Structure and charter of Board Committees• Rotation of committee members and chairs• Performance evaluation of CEO and members of

the Board• Succession planning and development Program

for Senior Management and Directors




The Executive Committee is composed of seven elected members of the Board of Directors. The Committee has the power to exercise functions and prerogatives of the Board of Directors during intervals between Board meetings except for matters the Board has specifi cally reserved for itself by appropriate resolu-tion. The Committee has its own rules and procedures. Minutes of all meetings of the Executive Committee are kept and carefully preserved as a record of business transacted. They are also submitted, together with a report of all matters acted upon by this Committee, at the regular meetings of the Board of Directors.

A quorum at any meeting of the Executive Committee consists of a majority of all the members thereof, and a majority of such quorum can decide any question that may come before the meeting. In case of a lack of quorum, the Chairman may designate any offi cer or member of the Board to fi ll the vacancy temporarily. The Secretary of the Board also acts as Secretary of the Executive Committee.

The Executive Committee held a total of 39 meetings for 2011. The following is the summary of the members’ attendance performance in 2011:

EXECUTIVE COMMITTEE

Carlos G. Chung* 18/19Ralph C. Nubla, Jr.* 19/19Henry Y. Uy 39/39Roman Anthony V. Azanza, Jr.* 17/19Roberto M. Macasaet 29/39Raul O. Serrano 38/39Imelda S. Singzon 31/39Ernesto T. Luy (alternate)* 15/19Reynaldo G. David** 18/19Eric O. Recto*** 14/20Gregorio T. Yu*** 18/20Mario J. Locsin**** 1/1

* Up to July 2011** Effective July 2011 until Dec. 2011*** Effective July 2011**** Effective December 2011




The Audit Committee is composed of fi ve members of the Board of Directors, three of whom are indepen-dent directors. It has a written charter, which includes its purpose, objective, duties and responsibilities, duly approved by the Board. The Committee assists the Board of Directors in fulfi lling its statutory and fi duciary responsibilities with respect to internal controls, including fi nancial reporting practices, information technology security, accounting policies, and auditing.

In 2011, the Audit Committee held a total of 12 meetings. Members of the present Committee were appointed on July 2011, following their election to the Board of Directors in a Special Meeting of same date. The following is a summary of members’ attendance in 2011:

AUDIT COMMITTEE

Raul O. Serrano 12/12Imelda S. Singzon 11/12Johnny O. Cobankiat* 7/7Joseph C. Tan* 6/7Enrique T. Luy* 3/7 Carlos G. Chung** 4/5 Teresita Ang See** 5/5Edgar J. Sia II** 4/5* Up to July 2011** Effective July 2011

The following is a summary of key activities of the Audit Committee in 2011:

1. Discuss with internal and external auditors their respective overall audit scope and plans, as well as the result of internal and external auditors’ respective examinations, evaluations of internal controls and overall quality of fi nancial reporting.

2. Approve the appointment of SGV & Co. as the external auditor.

The Governance Committee oversees the programs of the following sub-committees:

• Nomination Sub-Committee• Compensation and Remuneration Sub-Committee• Performance Evaluation Sub-Committee

The Nomination Sub-Committee identifi es, evaluates and recommends individuals qualifi ed to become directors of the Bank based on factors such as probity of character, extent of business experience and expertise and maturity of judgment. The sub-committee also exercises oversight functions in the selection, nomination and appointment of members of senior management.

The Compensation and Remuneration Sub-Committee oversees the implementation of the compensation and benefi ts program for Directors and senior management to attract and retain the best talents by benchmarking against other leading fi nancial institutions.

The Performance Evaluation Sub-Committee oversees the implementation of a performance management program for senior management and the members of the Board.

The Governance Committee meets quarterly or whenever necessary. In 2011, the Committee held a total of 10 meetings. The following is a summary of the members' attendance in 2011:

GOVERNANCE COMMITTEE

Raul Serrano 10/10Teresita Ang See 9/10Carlos Chung* 5/5 Joseph Tan* 5/5 Victor Lazatin* 2/5 Eric Recto** 5/5Ralph Nubla** 5/5

* Up to July 2011** Effective July 2011




The Risk Management Committee is composed of at least three members of the Board of Directors who possess adequate knowledge of the Bank’s risk exposure. The Chair-man of the Committee is an independent director, while the Secretary of the Committee is the Chief Risk Offi cer. It assists the Board of Directors in the execution of its function in overseeing the risk management program of the Bank. An effective risk management program is a critical component of fi nancially sound Bank opera-tions. It is a key element in achieving PBCom’s goal and objectives, optimizing growth and capital while minimizing losses to the Bank.

In 2011, the Risk Management Committee held a total of 6 meetings. With the signing of the Memorandum of Agreement between the previous major shareholders of the bank and ISM Communications Corporation, a new set of members of the committee were nominated.

The following is the summary of members’ attendance in 2011:

RISK MANAGEMENT COMMITTEE

Roberto M. Macasaet, Jr. 6/6Ralph C. Nubla, Jr. 3/6Imelda S. Singzon 4/6Roman Anthony V. Azanza, Jr.* 3/3Henry Y. Uy* 3/3Philip Chung Bun Lim* 2/3Carlos G. Chung 3/3Gregorio T. Yu** 2/3* Up to July 2011** Effective July 2011

The following is a summary of key activities of the Risk Management Committee in 2011:

1. Assess and recommend for approval to the Board of Directors the Bank’s written risk management program, policies and procedures to identify, measure, monitor and control risks (Credit, Market, Interest Rate, Liquidity, Operational, Compliance, Strategic, Repu-tation and Technology-related).

2. Review and adopt Approval Limits and Authorities

3. Evaluate risk assessment reports rendered by the Risk Management Group as well as the results of credit review performed by the Credit Policy and Review Group.

4. Appraise and recommend for approval to the Board of Directors the Internal Capital Adequacy Assessment Process (ICAAP) Report submitted to Bangko Sentral ng Pilipinas on January 31, 2011.

The Trust Committee is composed of fi ve members: three members of the Board of Directors, one of whom is an independent director, the President/CEO, and the Trust Officer. All of the members of the Trust Committee are financially literate.

The Trust Committee, as authorized by the Board of Directors, ensures that Trust policies and proce-dures address clients’ needs and risk tolerance. The Committee establishes and maintains policies on internal controls and information technology security, accounting policies, and fi nancial reporting practices pertaining to the Trust business of PBCOM.

In 2011, the Trust Committee held a total of 12 meetings. The following is a summary of the members' attendance in 2011:

TRUST COMMITTEE

Henry Y. Uy 12/12Raul C. Diaz 12/12Roberto Macasaet, Jr. 9/12Felix G. Chung* 7/7Philip Chung Bun Lim* 7/7Eric O. Recto** 3/5Ralph C. Nubla Jr.** 4/5* Up to July 2011** Effective July 2011




The following is a summary of key activities of the Trust Committee for 2011:

1. Implemented the Business and Strategic Plans of the Trust Group

2. Conducted product presentations and briefings covering all PBCom branches

3. Launched the first Trust Fund Generation Campaign

cODE Of EthicS

The PBCom Code of Ethics embodies the corporate principles that serve to guide the conduct and behavior of Bank employees in every situation. As an institution imbued with public trust, the Bank requires a high level of integrity and professionalism among all employees.

Through the Code of Ethics, the Bank has institution-alized the observance of its Core Corporate Values such as, Trust, Integrity, Professionalism, Loyalty and Excellence.

The specific objectives of the Code of Ethics are to:

1. Promote a corporate culture of good governance and best practices.

2. Empower and protect employees by making them

aware of the criteria/standards involved in carrying out their functions and in making decisions.

3. Standardize application of policies and regulations and corrective measures in case of deviations from expected behavior.

The Code of Ethics enforces the following fundamental policies of the Bank:

1. Putting the interests of the Bank above in situations where actual or potential conflict of interest exists. When such situation occurs, employees must put

the Bank’s interests over and above other interests and ensure that employees’ personal interests do not conflict with the duties, which they must perform for the Bank, or with the duties, which the Bank performs for clients. This covers the following restrictions:

• Personal transactions with clients.• Receiving gifts and gratuities from clients.

2. Probity in handling of confidential information, the disclosure or non-disclosure of such information is vital to the Bank’s well-being. Employees are mandated under the Code of Ethics to be able to:• Support good internal governance by prompt

reporting of critical information within the Bank.

• In accordance with law, keep client information confidential including the Bank’s propriety rights to trade secrets.

• Comply with regulatory requirements to disclose and report specific information as mandated by the anti-money laundering law.

3. Compliance with the law and with internal regulations challenging within the Bank, any values or policies that are inconsistent with these guidelines.

4. Provide quality customer service toward clients while protecting the legitimate interests of the Bank at all times.

5. Render services to customers on the basis of rational business criteria rather than on factors such as race, gender or religion.

6. Conduct personal, professional or business affairs in accordance with the highest moral standards so that there can be no opportunity for unfavorable reflections upon the Bank as follows:

a. Employees of PBCom must observe proper conduct at all times when handling their personal affairs.



Total Number of Shares Owned by the Public as of December 31, 2011.

18.26%

pbcOM'SpubLic OWnErShip pErcEntAgE


b. Employees of PBCom should know the importance of meeting their financial obligations and living within their means.

c. Employees of PBCom, especially those having money and property accountability, are prohibited from frequenting gambling establishments.

To ensure employees’ adherence to the Code of Ethics, the Bank formulated its implementing guidelines under the PBCom Code of Conduct.

The Code of Conduct was discussed and adopted by the Labor- Management Committee of the Bank con-sisting of representatives from the Human Resources Group and Union representatives to ensure support and commitment from all sectors in the Bank.

The Code of Conduct serves as guidelines for the enforcement of the provisions of the Code of Ethics and prescribes the applicable sanctions in case of deviation thereof. Any breach of the provisions of the Code may result in disciplinary action ranging from reprimand to termination of employment, depending on the gravity of the offense, after observance of due process of law. However, the spirit of implementation also gives more emphasis on positive motivation rather than punitive measures. Penalties shall be enforced only when necessary and only to the extent required by the circumstances. Sanctions shall be meted to:

• Correct unacceptable conduct• Restore the integrity of order and discipline

Application of sanctions are always guided by impartiality, open-mindedness, consistency, and fairness.

The Code of Ethics and the Code of Conduct are printed in handbook form and disseminated to all officers and staff.

Adherence to the Code is the responsibility of each employee of the Bank and is a condition for continued employment. Employees of PBCom annually confirm their adherence to these guidelines.



STATEMENT Of MANAgEMENT’S RESPONSiBiLiTYfOR fiNANciAL STATEMENTS

The management of Philippine Bank of Communications (the Company) is responsible for the preparation and fair presentation of the fi nancial statements for the years ended December 31, 2011, 2010 and 2009, in accordance with the prescribed fi nancial reporting framework indicated therein. This responsibility includes designing and implementing internal controls relevant to the preparation and fair presentation of fi nancial 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 fi nancial statements and submits the same to the Stockholders.

Sycip, Gorres, Velayo and Co., the independent auditors, appointed by the stockholders, has examined the fi nancial statements of the company 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.

________________________________roberto v. OngpinChairman of the Board

_______________________________henry y. uyPresident and Chief Executive Offi cer

_______________________________Angel M. corpusExecutive Vice President and Treasurer

Signed this 22nd day of February 2012



inDEpEnDEnt AuDitOrS’ rEpOrt

The Stockholders and the Board of Directors Philippine Bank of Communications

report on the financial Statements

We have audited the accompanying financial statements of Philippine Bank of Communications (the Bank) which comprise the statements of financial position as at December 31, 2011, 2010 and 2009 and the statements of income, statements of comprehensive income, statements of changes in equity and statements of cash flows for each of the three years in the period ended December 31, 2011, 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 financial statements present fairly, in all material respects, the financial position of the Bank as at December 31, 2011, 2010 and 2009 and its financial performance and its cash flows for the years then ended, in accordance with Philippine Financial Reporting Standards.

SyCip Gorres Velayo & Co.6760 Ayala Avenue1226 Makati CityPhilippines

Phone: (632) 891 0307Fax: (632) 819 0872www.sgv.com.ph

BOA/PRC Reg. No. 0001SEC Accreditation No. 0012-FR-2

iNDEPENDENDENT AUDiTORS' REPORT

Other matter

In our auditor’s report dated March 31, 2011, our opinion on the December 31, 2010 and 2009 financial statements prepared in accordance with Generally Accepted Accounting Principles in the Philippines for Banks and Philippine Financial Reporting Standards, respectively, was qualified because the excess of the book value over the net realizable value arising from the sale of the Bank’s nonperforming loans and real and other properties acquired to a special purpose vehicle amounting to P11.12 billion in 2004 was deferred over a ten-year period starting in 2005 in accordance with regulatory accounting policies prescribed by the Bangko Sentral ng Pilipinas for banks and financial institutions availing of the provisions of Republic Act No. 9182, “The Special Purpose Vehicle Act of 2002”. Generally Accepted Accounting Principles in the Philippines for Banks and Philippine Financial Reporting Standards require that the excess of the book value over the net realizable value of nonperforming loans and real and other properties acquired which were sold to the special purpose vehicle be charged to 2004 operations.

As discussed in Note 30 to the financial statements, the 2010 and 2009 financial statements were restated to account for the excess of the book value over the net realizable value of nonperforming loans and real and other properties acquired which were sold to the special purpose vehicle in accordance with Philippine Financial Reporting Standards. Accordingly, our opinion on the 2010 and 2009 financial statements, as presented herein, is no longer qualified.

report on the Supplementary information required under revenue regulations 19-2011 and 15-2010 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 Regulations 19-2011 and 15-2010 in Notes 32 and 33 to the financial statements, respectively, 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 Philippine Bank of Communications. 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 B. Lee-SalasPartnerCPA Certificate No. 86838 SEC Accreditation No. 0115-AR-2 (Group A), February 11, 2010, valid until February 10, 2013 Tax Identification No. 129-434-735 BIR Accreditation No. 08-001998-53-2009, June 1, 2009, valid until May 31, 2012 PTR No. 3174802, January 2, 2012, Makati City

February 22, 2012



iNDEPENDENDENT AUDiTORS' REPORT

2009(As restated -

Note 30)

P395,600,974

2,082,639,243578,317,738

1,790,111,7077,223,561,0627,794,492,591

12,608,985,45311,642,380

640,056,002282,638,490

2,969,850,147991,426,657210,018,545

P37,579,340,989

P3,858,100,2032,270,263,759

22,434,211,31028,562,575,272

7,373,672,28640,634,33041,848,961

217,809,142231,639,379

3,370,385,93439,838,565,304

3,000,000,0005,259,896,500

–476,011,662105,772,314

(11,038,968,664)

(176,986,021)112,935,135

2,114,759(2,259,224,315)

P37,579,340,989

December 312010

(As restated -Note 30)

P379,603,692

2,439,553,972556,586,784

1,149,282,17716,016,877,278

–13,185,347,826

11,299,640

595,063,677397,279,000

3,119,598,000664,641,238161,581,678

P38,676,714,962

P4,487,871,8972,375,465,528

20,744,311,00427,607,648,429

7,286,150,04953,181,97034,019,822

151,431,250319,942,340

2,851,147,95138,303,521,811

3,000,000,0005,259,896,500

–476,011,662105,772,314

(10,451,617,044)

1,765,820,381192,511,94424,797,394

373,193,151P38,676,714,962

2011

p369,163,701

6,040,783,141514,811,974

2,830,082,24016,143,744,549

–10,521,538,433

11,710,160

582,767,709369,300,000

3,466,407,778432,234,394138,490,321

p41,421,034,400

p4,883,897,4852,424,174,911

20,509,819,31927,817,891,715

7,355,846,37257,006,11533,800,311

275,086,724428,223,235

2,019,950,49037,987,804,962

3,000,000,0005,259,896,5002,373,032,602

476,011,662105,772,314

(9,655,254,740)

1,723,163,315173,260,544(22,652,759)

3,433,229,438p41,421,034,400

ASSEtScash and Other cash items (Notes 15 and 16)Due from bangko Sentral ng pilipinas (Notes 15 and 16)Due from Other banks interbank Loans receivable and Securities purchased under resale Agreements (Note 7)Available-for-Sale investments (Notes 8 and 30)held-to-Maturity investments (Note 30)Loans and receivables (Notes 9 and 28)investment in an Associate (Note 10)property and Equipment (Note 11) At cost At appraised valueinvestment properties (notes 12 and 30) Condominium units for lease Foreclosed propertiesOther Assets (Notes 13 and 30)

LiAbiLitiES AnD EQuityLiabilitiesDeposit Liabilities (Notes 15 and 28)DemandSavingsTime

bills payable (Note 16)Outstanding AcceptancesManager’s checkAccrued interest, taxes and Other Expenses (Note 17)Deferred tax Liabilities - net (Note 27)Other Liabilities (Note 18)

EquityPreferred stock (Note 20)Common stock (Note 20)Deposit for future stock subscription (Note 20)Additional paid-in capitalSurplus reserves (Note 20)Deficit (Note 30)Net unrealized gains (losses) on available-for-sale investments (Note 8)Revaluation increment on land (Note 11)Cumulative translation adjustment

See accompanying Notes to Financial Statements.

STATEMENTS Of fiNANciAL POSiTiON



intErESt incOMETrading and investment securities (Note 23)Loans and receivables (Notes 9 and 28)Interbank loans receivable and securities purchased under resale agreements (Note 7)Deposits with other banks and othersOthers (Note 18)

intErESt AnD finAncE chArgESDeposit liabilities (Notes 15 and 28)Bills payable, borrowings and others (Note 16)

nEt intErESt incOMEFair value gain from investment properties (Notes 12 and 30)Rent income (Notes 12 and 25)Trading and securities gain - net (Notes 8 and 23)Service charges, fees and commissionsForeign exchange gain (loss) - net Income from trust operations (Note 22)Profit from assets sold or exchanged (Note 12)Miscellaneous (Note 10)tOtAL OpErAting incOME

Compensation and fringe benefits (Notes 24 and 28)Taxes and licenses (Note 27)Occupancy and other equipment-related costs (Note 25)Depreciation and amortization (Note 11)Provision for credit and impairment losses - net (Note 14)Miscellaneous (Note 26)

tOtAL OpErAting ExpEnSES

incOME bEfOrE tAx

prOviSiOn fOr incOME tAx (note 27)

nEt incOME (notes 29 and 30)

basic/Diluted Earnings per Share (note 29)


2009 (As restated -

Note 30)

P1,525,635,7841,113,094,853

16,024,10348,602,458

480,157,7933,183,514,991

1,196,653,388680,720,326

1,877,373,714

1,306,141,277

143,616,904306,474,116119,185,253147,998,643

22,758,97415,208,61668,048,24419,944,662

2,149,376,689

616,045,361313,313,804

57,830,20391,873,659

378,555,825133,041,260

1,590,660,112

558,716,577

241,999,356

P316,717,221

P1.83

2010(As restated -

Note 30)

P1,406,693,3961,120,577,647

23,939,42135,225,129

515,354,4493,101,790,042

877,180,998719,633,489

1,596,814,487

1,504,975,555

5,098,828302,863,960530,017,916135,578,117(2,530,596)13,450,562

5,040,33326,665,410

2,521,160,085

607,210,898314,383,383

67,169,85476,544,552

197,786,006342,236,653

1,605,331,346

915,828,739

328,477,119

P587,351,620

P3.40

2011

p1,267,052,217962,579,022

41,694,25834,495,207

608,226,0752,914,046,779

805,901,776771,151,927

1,577,053,703

1,336,993,076

314,939,246289,688,114227,576,224127,672,852

45,892,90119,707,792

8,307,70728,053,164

2,398,831,076

622,260,886294,569,756

90,520,05158,806,65110,649,067

160,126,031

1,236,932,442

1,161,898,634

365,536,330

p796,362,304

p4.61

years Ended December 31

STATEMENTS Of iNcOME



STATEMENTS Of cOMPREHENSiVE iNcOME

nEt incOMEOthEr cOMprEhEnSivE incOME (LOSS)Changes in net unrealized gain (loss) on available- for-sale investments (Note 8)Net movement in revaluation increment, net of tax (Note 11)Net movement in cumulative translation adjustment

OthEr cOMprEhEnSivE incOME (LOSS)

tOtAL cOMprEhEnSivE incOME


2009(As restated -

Note 30)P316,717,221

427,058,721(21,520,099)

(7,934,920)

397,603,702

P714,320,923

2010(As restated -

Note 30)P587,351,620

1,942,806,40279,576,80922,682,635

2,045,065,846

P2,632,417,466

2011p796,362,304

(42,657,066)(19,251,400)(47,450,153)

(109,358,619)

p687,003,685




STATEMENTS Of cHANgES iN EQUiTY

totalEquity

(Note 30)

p3,574,920,651(3,201,727,500)

373,193,151

2,373,032,602687,003,685

p3,433,229,438

P3,018,700,436(5,277,924,751)(2,259,224,315)

2,632,417,466P373,193,151

P2,518,903,740(5,492,448,978)(2,973,545,238)

714,320,923–

(P2,259,224,315)

preferredStock

(Note 20)

p3,000,000,000–

3,000,000,000

––

p3,000,000,000

P3,000,000,000–

3,000,000,000–

P3,000,000,000

P3,000,000,000–

3,000,000,000––

P3,000,000,000

balance at January 1, 2011, as previously reportedAdjustments (Note 30)balance at January 1, 2011, as restatedProceeds from deposit for future stock subscriptionTotal comprehensive income (loss) for the yearbalance at December 31, 2011

Balance at January 1, 2010, as previously reportedAdjustments (Note 30)Balance at January 1, 2010, as restatedTotal comprehensive income for the yearBalance at December 31, 2010

Balance at January 1, 2009, as previously reportedAdjustments (Notes 30)Balance at January 1, 2009, as restatedTotal comprehensive income (loss) for the yearTransfer to surplus Balance at December 31, 2009


AdditionalPaid-in Capital

p476,011,662–

476,011,662

––

p476,011,662

P476,011,662–

476,011,662–

P476,011,662

P476,011,662–

476,011,662––

P476,011,662

cumulativetranslationAdjustment

p24,797,394–

24,797,394

–(47,450,153)

(p22,652,759)

P2,114,759–

2,114,75922,682,635

P24,797,394

P10,049,679–

10,049,679(7,934,920)

–P2,114,759

Deposit for future Stock Subscription

(Note 20)

p–––

2,373,032,602–

p2,373,032,602

P––––

P–

P–––––

P–

revaluationincrement

on Land(Note 11)

p192,511,944–

192,511,944

–(19,251,400)

p173,260,544

P112,935,135–

112,935,13579,576,809

P192,511,944

P137,215,136–

137,215,136(21,520,099)

(2,759,902)P112,935,135

commonStock

(Note 20)

p5,259,896,500–

5,259,896,500

––

p5,259,896,500

P5,259,896,500–

5,259,896,500–

P5,259,896,500

P5,259,896,500–

5,259,896,500––

P5,259,896,500

net unrealizedgains (Losses) onAvailable-for-Sale

investments(Note 8)

(p100,328,978)1,866,149,3591,765,820,381

–(42,657,066)

p1,723,163,315

(P176,986,021)–

(176,986,021)1,942,806,402

P1,765,820,381

(P604,044,742)–

(604,044,742)427,058,721

–(P176,986,021)

Deficit(Note 30)

(p5,383,740,185)(5,067,876,859)

(10,451,617,044)

–796,362,304

(p9,655,254,740)

(P5,761,043,913)(5,277,924,751)

(11,038,968,664)587,351,620

(P10,451,617,044)

(P5,865,996,809)(5,492,448,978)

(11,358,445,787)316,717,221

2,759,902(P11,038,968,664)

Surplusreserves(Note 20)

p105,772,314–

105,772,314

––

p105,772,314

P105,772,314–

105,772,314–

P105,772,314

P105,772,314–

105,772,314––

P105,772,314





STATEMENTS Of cASH fLOWS

cASh fLOWS frOM OpErAting ActivitiESIncome before income taxAdjustments to reconcile income before income tax to

net cash generated from (used in) operations:Accretion of interest on bills payable (Note 16)Depreciation and amortization (Note 11)Reversal of provision for tax assessments (Note 26)Amortization of unearned income credited to interest income - others (Note 18)Provision for credit and impairment losses (Note 14)Fair value gain from investment properties (Note 12)Equity in net losses (earnings) of an associate

(Note 10)Gain from bond exchange (Note 30)Profits from assets sold or exchanged (Note 12)Securities gains from sale of available-for sale

investments (Notes 8 and 23)Amortization of premium on held-to-maturity

investmentsChanges in operating assets and liabilities:

Decrease (increase) in the amounts of: Loans and receivables Other assets Increase (decrease) in the amounts of: Deposit liabilities Manager’s checks Accrued interest, taxes and other expenses Other liabilitiesNet cash generated from (used in) operationsIncome taxes paidNet cash provided by (used in) operating activities

cASh fLOWS frOM invESting ActivitiESAcquisitions of:

Interbank loans receivable (Notes 7 and 31)Available-for-sale investmentsProperty and equipment (Note 11)Investment properties (Notes 12 and 31)Software cost (Note 13)

Proceeds from:Sale of available-for-sale investmentsDisposals of property and equipment (Note 11)Disposals of investment properties (Note 12)Dividends received from associate (Note 10)Disposal of chattel mortgage

Net cash provided by investing activities

(Forward)

2009(As restated -

Note 30)

P558,716,577

486,562,84791,873,659

(169,663,646)

(480,157,793) 378,555,825

(143,616,904)

45,200–

(68,048,244)

(115,413,579)

1,407,718

527,366,863(2,197,765)

(3,050,726,217)(13,241,978)

20,497,813(14,704,183)

(1,992,743,807)(288,144,243)

(2,280,888,050)

–(20,747,270,373)

(24,243,456)(2,991,637)

(10,333,778)

23,101,735,6595,578,835

433,197,254–

36,356,6922,792,029,196

2010(As restated -

Note 30)

P915,828,739

551,013,33276,544,552

–

(515,354,449)197,786,006(5,098,828)

(257,260)(22,977,176)

(5,040,333)

(500,900,079)

–

(755,574,289)18,501,837

(954,926,843)(7,829,139)

(66,285,144)(8,100,984)

(1,082,670,058)(274,371,253)

(1,357,041,311)

(43,840,000)(53,682,379,284)

(19,781,161)(7,706,251)(5,714,646)

55,150,135,9264,884,817

194,446,717600,000

–1,590,646,118

2011

p1,161,898,634

624,051,41758,806,651

(197,871,861)

(608,226,075)10,649,067

(314,939,246)

(410,520)–

(8,307,707)

(220,166,698)

–

2,720,068,97219,274,877

210,243,286(219,511)

123,654,733(20,882,075)

3,557,623,944(249,004,094)3,308,619,850

–(26,697,370,076)

(37,375,416)(3,291,223)(4,587,247)

26,748,012,4373,368,048

141,604,008––

150,360,531




STATEMENTS Of cASH fLOWS

cASh fLOWS frOM finAncing ActivitiESProceeds from deposit for future stock subscription

(Note 20)Availments of:

Bills payableOutstanding acceptancesMarginal deposits

Settlements of:Bills payableOutstanding acceptancesMarginal deposits

Net cash provided by (used in) financing activities

EffEct Of fOrEign currEncy trAnSLAtiOn ADJuStMEnt

nEt incrEASE (DEcrEASE) in cASh AnD cASh EQuivALEntS

cASh AnD cASh EQuivALEntSAt bEginning Of yEAr

Cash and other cash itemsDue from Bangko Sentral ng PilipinasDue from other banksInterbank loans receivable and securities purchased

under resale agreements (Notes 7 and 31)

cASh AnD cASh EQuivALEntS At EnD Of yEAr

Cash and other cash itemsDue from Bangko Sentral ng PilipinasDue from other banksInterbank loans receivable and securities purchased

under resale agreements (Notes 7 and 31)

2009(As restated -

Note 30)

P–

22,954,508,834196,366,683

–

(23,369,945,419) (187,139,075)

–(406,208,977)

(3,380,923)

101,551,246

420,581,6423,185,217,3011,139,319,473

–4,745,118,416

395,600,9742,082,639,243

578,317,738

1,790,111,707P4,846,669,662

2010(As restated -

Note 30)

P–

18,506,795,761308,926,371

11,757,708

(19,145,331,330)(296,378,731)

(7,540,258)(621,770,479)

22,682,635

(365,483,037)

395,600,9742,082,639,243

578,317,738

1,790,111,7074,846,669,662

379,603,6922,439,553,972

556,586,784

1,105,442,177P4,481,186,625

2011

p2,373,032,602

15,076,554,6331,049,319,401

14,504,421

(15,630,909,727)(1,045,495,256)

(18,721,871)1,818,284,203

(47,450,153)

5,229,814,431

379,603,6922,439,553,972

556,586,784

1,105,442,1774,481,186,625

369,163,7016,040,783,141

514,811,974

2,786,242,240p9,711,001,056


interest receivedinterest paid


2009P2,373,863,455

1,430,138,524

2010P2,204,873,923

1,061,612,561

2011p1,492,675,497

944,847,047


OPERATiONAL cASH fLOWS fROM iNTEREST



PRODUcTS & SERVicES

DEpOSitS

Regular Peso Savings AccountQuick Cash ATM AccountU.S. Dollar Savings AccountEuro Savings AccountAutomatic Fund Transfer AccountRegular Peso Checking AccountValue Check AccountIntegrALL AccountRegular Peso Time DepositRegular U.S. Dollar Time DepositRegular Euro Time DepositPassbook Time DepositPremium One Time DepositPremium Two Time DepositPremium Three Time DepositMaxi Dollar Time Deposit

cASh MAnAgEMEnt SErvicES

Automated Teller Machines (ATM)PBCom Checkwriting FacilityPDC WarehousingDeposit Pick-UpFull Payroll ServiceAutomatic Debit ArrangementPoint-of-Sale Facility via BancnetBIR TaxlinkCash Withdrawal Delivery

AnciLLAry SErvicES

Safe Deposit BoxesManager’s ChecksGift ChecksDemand Draft

crEDit AnD LOAn fAciLitiES

Short Term Peso Commercial LoansCheck Discounting FacilityForeign Currency LoansExport Packing Credit FacilityCommitted Credit LineReal Estate Development LoanReal Estate CTS FinancingTerm Loan FacilityDomestic Bills PurchasedMortgage Loan Program (Value Credit)Salary Loan ProgramQuick Credit Facility

trEASury

Treasury NotesTreasury BillsRetail Treasury BondsUS Dollar Bonds Trading Money Market PlacementsForeign Exchange Trading



rEMittAncES

FOREIGN & DOMESTIC REMITTANCES via:• Society of Worldwide Interbank Financial Telecommunications (SWIFT)• Philippine Domestic Dollar Transfer System (PDDTS)

TYPES OF TELEGRAPHIC TRANSFERS:• Foreign Telegraphic Transfer via SWIFT MT103 • Dollar: Local Telegraphic Transfer via PDDTS-GSRT (Gross Settlement Real Time) • Dollar: Local Telegraphic Transfer via PDDTS-EOD (End-of-Day Netting) • Peso: Local Telegraphic Transfer via EPCS (Electronic Peso Clearing System) • Peso: Local Telegraphic Transfer via RTGS (Real Time Gross Settlement)• Peso: Overseas Filipinos PhilPass Remit CLEARING OF FOREIGN DENOMINATED CHECKS thru:• Cash Letter • Bills Sent For Collection • Outward Bills For Collection BIR COLLECTIONSSS COLLECTIONSSS PENSIONSMEC (Sickness, Maternity & Employee’s Compensation) BENEFITS and PAYMENT OF SSS CONTRIBUTIONS & LOAN PAYMENTS thru BANCNET-EDI

trADE-rELAtED SErvicES

Import and Domestic Letters of CreditForeign and Domestic Stand-by Letters of CreditShipping Guarantee/Shipside BondTrust ReceiptsExport Bills PurchaseClean and Documentary CollectionsImport Bills/Customer's Liabilities under AcceptancesCollection of Advance and Final Duties (BOC E2M/PAS5 System)Trade Financing of Receivables and PayablesDocument Against Acceptance (DA)Document Against Payment (DP)Open Account (OA) Agreement

truSt AnD invEStMEnt SErvicES

Employee Benefit TrustsInstitutional TrustsMortgage Trust Indentures/Collateral Trusts

Estate Planning• PBCom Master Trust• PBCom Forward Trust• PBCom Classic Dollar Trust• PBCom Classic Dollar Trust

Unit Investment Trust Funds (UITFs)• PBCom Signature Trust Fund• PBCom Best Balanced Fund• PBCom Value Equity Fund• PBCom Horizon Peso Bond Fund*• PBCom Harvest Dollar Bond Fund*

Investment Management Accounts (IMA)• Peso IMA• Dollar IMA

Escrow AgencySafekeeping

* to be launched soon

pbcOM OnLinE bAnking viA bAncnEt

PRODUcTS & SERVicES

BRANcH DiREcTORY

hEAD OfficEPBCom Tower, 6795 Ayala Avenue cor. V.A. Rufino St., Makati City830-7000 (trunkline)

MEtrO MAniLA

AnnApOLiS Unit 101, Victoria Plaza Condominium, 41 Annapolis St, Greenhills, San Juan577-9406;722-6613; 0917-5541409; Telefax 723-4856

AyALA-ALAbAng Unit 101 ALPAP II, Bldg., Trade St. cor. Investment Drive, Madrigal Business Park, Ayala Alabang, Muntinlupa City577-9475;809-4538; 0917-5541415; Fax 809-4204

binOnDO bAnking cEntEr214-216 Juan Luna St., Binondo, Manila577-9477; 830-7000 loc. 7811/7812/7813/7814; 242-1843; 242-1851; 242-1796; 242-8716; 0917-5541419; Telefax 242-8711

bMA Web-jet Building, BMA St. cor. Quezon Ave., Quezon City577-9476; 712-8414; 0917-5541417; Fax 712-3505

kALOOkAn #249 Rizal Ave. Ext. Cor. 7th Ave., Kalookan City 577-7790; 361-1302; 361-3653; 0917-5541463; Telefax 361-2094

cOngrESSiOnAL Ground Floor Cherry Foodarama Complex, Congressional Ave., Quezon City577-9478; 925-9850; 0917-5541421; Fax 925-9848

cOrinthiAn gArDEnS Sanso St. Corinthian Gardens, Quezon City577-9479; 687-7088; 0917-5541425; Telefax 687-4397

cubAO LGF - 106 Ali Mall II, Times Square Ave. cor. P. Tuazon Blvd., Araneta Center Cubao, Quezon City577-9480; 913-4912; 0917-5541447; Telefax 912-2947

EchAguE 88-90 Carlos Palanca cor. Isla del Romero St., Quiapo, Manila577-7776; 736-0123; 0917-5541449; Telefax 736-0124

ELcAnO SHC Tower, 613 Elcano St., San Nicolas, Manila577-7779; 242-3575; 0917-5541451; Telefax 242-3591

grEEnhiLLS Quadstar Bldg., Ortigas Avenue, Greenhills, San Juan, Metro Manila577-7784; 722-7060; 721-2603; 0917-5541461; Telefax 723-8520

LEgASpi viLLAgE G/F, Vernida I Condominium, 120 Amorsolo St., Legaspi Village, Makati City577-7801; 813-2506; 0917-5541469; Telefax 813-2482

MAkAti bAnking cEntErG/F PBCOM Tower, 6795 Ayala Ave. cor. V.A. Rufino St., Makati City577-9009; 830-7000 loc. 7210/7310/7130/7131; 810-2267; 810-2332; 810-2329; 0917-5541471; Fax 810-2334

MALAbOn 123 Gov. Pascual Ave., Acacia Malabon, Metro Manila577-9026; 446-0381; 0917-5541475; Telefax 288-6599



MArikinA 34 J.P. Rizal St., Calumpang, Marikina, Metro Manila577-9108; 645-2966; 645-2637; 0917-5541481; Fax 645-8374

MASAngkAy 1004-1006 G. Masangkay St., Binondo, Manila577-9110; 244-8787; 244-8751; 0917-5541485; Telefax 244-8679

MErALcO AvEnuE C-1 Horizon Condominium, Meralco Avenue, Pasig City577-9112; 637-2857; 632-0422; 0917-5541487; Fax 632-0419

Ongpin Ongpin cor. S. Padilla St., Sta. Cruz, Manila577-9116; 733-1188; 0917-5541348; Telefax 733-1165

pADrE rADA S & U Bldg., 953 Juan Luna near cor. Padre Rada St., Tondo, Manila577-9118; 245-2356; 0917-5541350; Telefax 245-2354

pArAnAQuE Stalls 3 & 4, Kingsland Building, Dr. A Santos Avenue, Parañaque City577-6474; 820-0902; 0917-5541352; Fax 829-2424

pASAy 2492 Taft Avenue Extension, Pasay City577-6475; 831-0878; 831-0329; 0917-5541354; Telefax 832-7838

piOnEEr GF RFM Corporate Center Bldg., Pioneer St. cor. Sheridan St., Mandaluyong City577-6477; 631-8101 loc. 7160/7162/7180/7109; 706-6120; 637-8927; 0917-5541356; Telefax 631-9213

QuEZOn AvEnuE APC Building, 1186 Quezon Ave., Quezon City577-6478; 371-2941; 371-2940; 0917-5541360; Telefax 410-8013

SAn MiguEL AvEnuE G101 One Magnificent Mile (OMM), CITRA Condo., San Miguel Ave., Pasig City577-6479; 637-1717; 0917-5541362; Telefax 637-1719

SEn. giL puyAt G/F Country Space One Condominium, 133 Sen. Gil Puyat Avenue, Salcedo Village, Makati City577-6482; 843-9287; 0917-5541364; Telefax 843-9311

ShAW bOuLEvArD 146 Shaw Blvd. Cor. San Roque, Pasig City577-6483; 634-1433; 0917-5541372; Telefax 634-5758

SOuthgAtE3rd Floor Alphaland Southgate Mall2258 Chino Roces St., cor EDSA, Makati City822-7573; 0917-5541491Fax 822-2655

StA. MESA 440-A G. Araneta Ave., cor. Bayani St, Sta. Mesa, Quezon City577-6484; 743-1453; 781-5803; 0917-5541374; Telefax 781-4948

StO. criStO 565-567 Sto. Cristo Street, Binondo, Manila577-6485; 245-6570; 242-3194; 0917-5541378; Telefax 242-5386

tAft AvEnuE-nAkpiL Goldilocks Commercial Bldg, L-10, B-548 J. Nakpil cor. Taft Ave., Malate, Manila577-6486; 525-7154; 0917-5541382; Telefax 525-2440

t. ALOnZO Grd. Flr. Tan Kiang Bldg., 665 T. Alonzo St., Sta. Cruz, Manila577-6487; 733-1598; 0917-5541384; Telefax 733-1520

tutubAnUnit nos. PL-LSO7 & 08, Tutuban Center Prime Block, C. M. Recto, Manila577-6488; 253-5217; 252-4938; 0917-5541386; Telefax 252-4997

unitED nAtiOnS AvEnuEUnit 101-102 Don Alfonso Sycip Condominium, 1108 M. H. del Pilar, cor. U.N Avenue & Guerrero Street, Ermita, Manila577-6489; 524-8291; 0917-5541390; Telefax 523-0568

vALEnZuELA246 McArthur Highway, Karuhatan, Valenzuela, Metro Manila577-6490; 291-5253; 291-2514; 0917-5541396; Fax 291-5197

yLAyA790 Ylaya St., San Nicolas, Manila577-6492; 242-9069; 0917-5541402; Telefax 244-9326

LuZOn

AngELES810 Henson Street, Brgy. Lourdes Northwest, Angeles City(02)830-7000 loc. 2700; (045)625-8712; Telefax (045)888-9650

bAtAngASDiego Silang Street, Batangas City(02)830-7000 loc. 2750/2751; (043)723-4208; (043)723-7801; 0917-5564310; Fax (043)723-4207

DAgupAnFIB Bldg., M.H. del Pilar,Mayombo District, Dagupan City(02)830-7000 loc. 2820; (075)523-6862; (075)515-2097; Telefax (075)523-6954

DASMAriÑASEVY Bldg., Molino-Paliparan Road, Salawag, Dasmariñas, Cavite (02)830-7000 loc. 2780/2781; (046)481-5268; Telefax (046)481-7250

iMuSP. Nueño Street cor. Gaerlan Street, Imus, Cavite(02)830-7000 loc. 2390; (046)471-4349; Telefax (046)471-3368

SAn pEDrO-pAcitA cOMpLEx Unit 20 & 21 Bldg. 2, Centro Pacita, Pacita Complex Phase 2, San Pedro, Laguna808-6083; 808-6081; Telefax 808-6082

BRANcH DiREcTORY



viSAyAS

bAcOLOD Ground flr. OMEI bldg., Locsin St. Bacolod City(02)830-7000 loc. 2961; (034)435-0690; (034)433-0404; Fax (034)433-0402

cEbuMagallanes St., Cebu City(02)830-7000 loc. 2900; (032)253-2761; (032)253-2851; (032)253-2740; (032)318-2487; 0917-5541404; Fax (032)255-3286

iLOiLO Ledesma cor. Valeria Street, Iloilo City(02)830-7000 loc. 2930; (033)337-3668; (033)336-8989; (033)336-8987; Fax (033)335-1181

MAnDAuENational Highway, Mandaue City, Metro Cebu(02)830-7000 loc. 2940/2941; (032)318-2489; (032)344-1078; (032)346-5110; 0917-5541420; Telefax (032)346-5109

MAnDAuE bASAk Co Tiao King Bldg, Cebu North Road, Basak, Mandaue City(02)830-7000 loc. 2801; (032)318-3506; 0917-5541422; Telefax (032)346-2709

MAngO AvEnuEGen. Maxillom (Mango) Ave., Cebu City(02)830-7000 loc. 2950; (032)318-2488; (032)253-1419; 0917-5541416; Fax (032)253-2326

MinDAnAO

cAgAyAn DE OrO Tiano Bros. Cor. Hayes St., Cagayan de Oro City(02)830-7000 loc. 2920/2921; (08822)72-6519; Fax (088)857-1558

DAvAO41 Monteverde Avenue, Davao City(02)830-7000 loc. 2910/2912; (082)330-7985; (082)221-2140; 0917-5564457; Fax (082)221-2141

LA uniOn GF CJ ARCH Bldg., Quezon Ave.,San Fernando City, La Union(02)830-7000 loc. 2610; (072)888-2741; (072)888-2044; Telefax (072)888-2740LipAGF ATDRMAM Laguna Corp. Bldg., Ayala Highway, Mataas na Lupa, Lipa City, Batangas(02)830-7000 loc. 2790(043)757-3258; (043)417-6560; 0917-5564314; Telefax (043)757-3261

LucEnA G/F, VCII Bldg., Merchan St.cor. San Fernando St., Lucena City(02)830-7000 loc. 2740/2741; (042)373-6464; (042)373-6462; 0917-5564312; Telefax (042)373-6465

MALOLOS Malolos Shopping Arcade, Paseo del Congreso, San Agustin, Malolos, Bulacan(02)830-7000 loc. 2720; (044)790-6536; (044)662-0896; Fax (044)662-0899

MEycAuAyAn Mancon Building, McArthur Highway, Barrio Calvario, Meycauayan, Bulacan480-3476; (044)840-4496; (044)815-2502; Telefax (044)815-2501

SAn fErnAnDO McArthur Highway, Dolores, San Fernando, Pampanga(02)830-7000 loc. 2710; (045)860-1890; (045)963-6785Telefax (045)963-6784;

SAn pAbLO 65 Rizal Ave., Poblacion,San Pablo, Laguna(02)830-7000 loc. 2681; (049)561-1187; (049)561-1186; Telefax (049)561-1188

DAvAO - LAnAng Davao Motor Sales Building,National Road, Lanang, Davao City(02)830-7000 loc. 2810; (082)235-3200; (082)330-7987; 0917-5564308; Fax (082)235-3201

QuirinO-DAvAO111 E. Quirino Avenue, Davao City(02)830-7000 loc. 2880; (082)222-4161; (082)330-7986; 0917-5564459; Fax (082)222-4160 gEnErAL SAntOSSantiago Boulevard, General Santos City(02)830-7000 loc. 2980; (083)552-8167; Fax (083)301-8445

iLigAnM.H. del Pilar cor. J. Luna St., Iligan City(02)830-7000 loc. 2840; (063)223-2702; Fax (063)223-2703

kOrOnADAL General Santos Drive, Koronadal, South Cotabato(02)830-7000 loc. 2891; (083)228-3917; Fax (083)228-3919

tAguM Pioneer Avenue, Tagum, Davao del Norte(02)830-7000 loc. 2970/2971; (084)217-3901; Fax (084)400-2768

ZAMbOAngA GF Interco Building, NS Valderosa St., Zamboanga City(02)830-7000 loc. 2850; (062)992-6435; (062)992-6437; Fax (062)992-6438

ZAMbOAngA-vEtErAnS AvEnuE HC Building, Veterans Avenue,Zamboanga City(02)830-7000 loc. 2870/2871; (062)991-1865; (062)991-6162; Telefax (062)991-6194

BRANcH DiREcTORY


See financialNotes cD here

Philippine Bank of CommunicationsPBComTower,6795AyalaAvenuecornerV.A.RufinoSt.,

Makati City, 1226 Philippines

Trunkline: +63 830 7000

www.pbcom.com.ph

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