Maybank Philippines 2021 Annual Report

Table of
Contents
01 About Maybank Philippines 27 Our Leadership 78 2021 Audited Financial
06 About Maybank Group 38 Corporate Governance Statements
09 Key Messages to Stakeholders 49 Risk Management 138 Products and Services
15 2021 Financial Highlights 74 Sustainability & Corporate 146 Branch Network
16 Review of 2021 Operations Responsibility
2021 Maybank Philippines Annual Report: Humanising the New Banking Experience
The Maybank Philippines

Things may not be going back to how they were before any time soon, but the pandemic
2021 Annual Report is
should not be made an excuse for not delivering on our promise. After a year of “living with
also available online.
Scan the QR code to view the virus”, we continue to conduct ourselves as true frontliners, forces of good: by ensuring
or download the online our financial services remain available and dependable, convenient and consistent; whether
version of this report. physical or digital or hybrid interactions.
This is our new normal, so we embrace it, move forward, and thrive through it all-- together.
This is what humanising the new banking experience is about.
2021 Annual Report 1
Corporate
Profile
M
aybank Philippines, Inc. (MPI) is a full-service commercial bank,
serving retail, commercial, and corporate clients.
MPI offers an array of financial services and products that include
lending (personal loans, commercial loans, corporate loans), deposit-
taking, electronic banking, credit card, cash management services, wealth
management, remittances, trust and fiduciary accounts, and treasury products
and services.
Now on its 25th year of operations in the Philippines, the bank has primed
itself for providing exceptional service to its clients. MPI is present in all the
three major islands of the Philippines, with more than 60 branches and 84
offsite and onsite ATMs nationwide – the only foreign bank with the largest
branch network in the country.
MPI is a member of the Maybank Group, one of Asia’s leading banking
groups and Southeast Asia’s fourth largest bank by assets. Maybank is the only
foreign bank that has operations in all 10 ASEAN countries, as well as presence
in key financial centers such as London, New York, Hong Kong and Dubai.
The Maybank Group is present in Malaysia, Singapore, Indonesia,
Philippines, Brunei Darussalam, Cambodia, Vietnam, Laos, Myanmar, Thailand,
Hong Kong SAR & People’s Republic of China, Uzbekistan, Pakistan, India,
Saudi Arabia, United Arab Emirates, United Kingdom and the United States
of America. The Group offers an extensive range of products and services,
which includes consumer and corporate banking, investment banking, Islamic
banking, stock broking, insurance and takaful and asset management.
With a deep understanding of the ASEAN markets, Maybank takes a
leading role in driving economic growth and helping communities develop
across the region, going beyond financial services, with focused on areas
where Maybank can make a significant difference in fulfilling customers’
ambitions and driving financial inclusion while supporting business, big and
small, succeed in ASEAN and beyond.
Our Vision Our Core Values
Be the preferred financial solutions provider in the Our T.I.G.E.R. values serve as guiding principles for
target markets and communities we commit to serve: all Maybankers to serve our mission of Humanising
a focused bank with a strong position in Auto Finance, Financial Services.
the mid-tier Corporate segment, Wealth Management,
Retail SME and Digital Banking. Our T.I.G.E.R. values define what we believe in and
what we stand for.
Our T.I.G.E.R. values guide our actions and decisions,

Our Mission creating an inclusive and innovative culture for positive
work to thrive.
Humanising Financial Services.
T I GE R
Being at the heart of the community, we will:
Make financial services simple,

1 intuitive and accessible
Build trusted partnerships for Teamwork Integrity Growth Excellence & Relationship
2 a sustainable future together We work We are honest, We are Efficiency Building
together as a professional passionate We are We continuously
team based on and ethical in about constant committed build long-term
Treat everyone with respect, mutual respect all our dealings. improvement to delivering and mutually
3 and dignity. and innovation. outstanding beneficial
dignity, fairness and integrity
performance partnership.
and superior
service.
2 Maybank Philippines, Inc.

Humanising
Financial Services
Our Brand Promise Our Brand Personality
T
he Maybank brand is all about one simple, The Maybank brand is built by Maybankers,
powerful and unique idea: Humanising each having a vital role to play in delivering our brand
Financial Services. promise. By putting people at the center of all that
It’s about Humanity, Community and our we do, and by acting consistently in accordance to
Commitment to do the Right Thing – for our our values, we aim to differentiate ourselves from our
customers, employees, shareholders, stakeholders competitors and peers, while continuing to build a
and the society. sustainable business for generations to come.
To humanise financial services is to

Authentic
We speak from the heart.
We always make sure the benefit is clear.
Do the Right Thing We stress simplicity in approach and
words, using language that is easy
to understand.
Leave No One behind Humble

We are active listeners.
We express our opinions and
respect what others have to say.
Serve as a Force for Good We put ourselves in the heart
of the communities around us.
Accountable
We deliver on our promise.
We do not make unrealistic claims,
exaggerate the truth or be ambiguous
on products and services.
We exceed expectations, even in small
ways, as this always wins hearts and
inspires confidence.
Business Model
of the Bank
Our Capitals Our Key Strategies Our Stakeholders

Financial Capital Together with Maybank Group we live to deliver Shareholders
We are driven by revenue growth, sustainable our mission of Humanising Financial Services. Maybank We continue to enhance performance and
balance sheet growth and growing deposits Philippines is keen on these imperatives in unlocking efficient operations to provide sustainable
and loans. opportunities and creating value to the community we serve: returns to our shareholders.
Manufactured Capital We are at the Heart of the Community. Customers

We have our reliable branch network and We continue to thrive to provide fair and just We focus on providing next-generation customer
enhanced digital infrastructure to support financial services, responsibly growing our business experience to fulfill our customers’ financial needs.
our delivery system. together with our customers. We prudently
safeguard the assets that were entrusted to us. Community
Human Capital We, together with the Maybank Foundation and
We are an organisation comprised of high We Make Banking Convenient. Group CSR, strive to identify programs across
performing Maybankers and management with We deliver frictionless customer experience by the country that will have most impact and
diverse expertise empowered by our core values. continuously understanding our customers’ needs sustainable results to help local communities.
and delivering the right solutions at the right
Social & Relationship Capital moment through our enhanced digital capabilities Regulators
We have a network and relationships with the and improved branch network. We uphold to the highest standards, ensuring
communities that we operate in. that our culture and practices evolve together
We Are Agents of Success. with the changing regulatory environment to
We provide enterprises with business solutions ensure sustainability of our business for the
through our regional capabilities to support their people and the community we serve.
growth and advancement.
Employees
We Live Up to our T.I.G.E.R. Values. We ensure our people share our determination
We create a high-performing and credible in providing positive impact in the community
organisation by anchoring our beliefs and through our employee development programs,
practices on our strong T.I.G.E.R values. rewards system and exciting working environment.
We Are Future Ready.

We continue to build our work force and attract
value driven new talents. While continuously
building competencies employees capabilities to
ensure that we are future ready to support our
business growth requirement.

House of
Maybank
CEO, International
MPI Board of Directors
Risk Management
Trust Committee Audit Committee
Committee
MPI President and CEO
Abigail Tina M. Del Rosario
Compliance Risk Management Trust Internal Audit

Ma. Bernadette T. Ratcliffe Rajagopal Ramasamy Antonio C. Danao April Theresa D.C. Bernandino
(Acting Internal Audit Head)
Office of the Information Technology Finance Central Operations Global Banking Community Financial Services
President Bernardo G. Talimban, Jr. Likia Jose A. Morales III Manuel G. Bosano III Patrick Dennis L. Solosa (OIC)
Head, Corporate Affairs Human Capital Legal Head, Purchasing, Head, Loans Head, Wealth
Head, Client Coverage Head, Virtual Banking
ROPA, Admin Administration Management and
Edelyn H. Castro (OIC) Mark Lord D. Limson Gerardo J. De Leon Bancassurance
Michael C. Pagkalinawan
Stanley F. Chua Juanito C. Lucas Vincent Dexter D. Go*
(OIC) Jacqueline Grace B.
Head, Operational Wieneke
Excellence Head, Corporate Head, Marketing
Head, Payments and Cash
Head, Financial Controller Banking 1
Jose A. Morales III Services Head, Community Donna Michelle T. Barroga
(concurrent) Distribution and RSME
Alpha Beth A. Santos Michael D. Banzon Manuel Angelo C. Monzon
Delbert S. Ang It Head, Retail Credit Center
Head, Service Quality
Management Jo-Anne D. Rodriguez
Head, Transformation and Head, Corporate
Head, Corporate Planning Banking 2
Strategy
Valerie A. Valenzuela Head, Consumer Finance
Head, Products –Assets
Enrico L. Cordoba Joanne Marie T. San Pedro Jennifer P. Capistrano Patrick Dennis L. Solosa
(concurrent) Catherine D. Sangalang
Chief Security Officer
Archivald S. Raniel Head, Corporate Remedial Head, Property Head, Real Estate Finance
Administration Head, Cards & Unsecured Head, Products –
Julian Keith J. Muncal Lending Liabilities
Cesar Nickolai F.
Soriano Jr. Louie A. Salud
Paolo M. Salcedo Ma. Rosario N. Lagula
Head, Transaction
Banking
Head, Business Banking Head, Customer
April Katrina V. Albotra Experience Process and
Julian Keith J. Muncal
Governance
Head, Financial Head, Asset Quality Joy B. Bitoy

Institutions Management
Vacant Roger S. Diaz

* Vincent Dexter D. Go resigned effective 31 Dec 2021 Head, Business Finance
Maria Youra V. Duro
Head, Global Markets
Andy Keong Yong Yeoh

Maybank Group:
Who We Are and What We Do
Islamic Finance leverage model is utilised to distribute Islamic

Maybank Philippines is a member of the Maybank Group, the largest financial services group in Malaysia products across the Group.
with strong presence in the ASEAN region. Established in 1960, Maybank provides a full suite of
conventional and Shahriah-compliant products and services in commercial banking, investment Group Corporate Support Functions
banking and insurance, to over 15 million retail, non-retail and corporate customers.
Finance | Strategy | Technology | Operations | Compliance |
Risk | Human Capital | Internal Audit | Corporate Secretarial |
Our Values Our M25 strategy pillared on Pervasively Digital, Legal | Sustainability
Teamwork. Integrity. Growth. Excellence & Efficiency. New Value Drivers and Sustainability.
Relationship Building. Help Deliver Value Across
Our Structure… ASEAN and Beyond.
Our T.I.G.E.R. core values are the guiding principles In serving our mission, we provide an array of financial
for all Maybankers to serve our mission of Humanising products and services through three key business pillars, Being at the heart of the community, we remain at the
Financial Services. supported by shared corporate functions across our global forefront in supporting our stakeholders in navigating yet
network of 18 countries. another year filled with challenges from the global pandemic,
Our Mission while leading the path towards recovery.
Humanising Financial Services. Business Pillars
Being in the heart of the community, we will: We are in 18 countries, with Malaysia, Singapore and Indonesia
Group Community Financial Services being our home markets. We are also present in international
Make financial services simple, For: individuals, retail SMEs and mid-sized corporates financial centers such as London, New York, Hong Kong
1 intuitive and accessible Offers: Retail banking services such as wealth management, and Dubai.
mortgage, auto financing, credit cards, short-term credit
Build trusted partnerships for and long-term business loans. 2,617
2 a sustainable future together Retail Branches worldwide
Group Global Banking
Treat everyone with respect, For: large corporates and institutions 45
3 dignity, fairness and integrity Offers: Wholesale banking services such as transaction Investment Banking Branches worldwide
banking, investment banking, corporate banking, global
Our Unique Differentiators markets and treasury, and asset management. Malaysia, Singapore, Indonesia, Philippines, Brunei
We serve our communities in ways that are simple, Darussalam, Cambodia, Vietnam, Laos, Myanmar, Thailand,
fair and human, embodying our mission. Group Insurance and Takaful Hong Kong SAR & People's Republic of China, Uzbekistan,
For: individuals and corporates Pakistan, India, Saudi Arabia, United Arab Emirates, United
Over 42,000 Maybankers worldwide who serve the mission, Offers: Conventional and Islamic insurance (Takaful) solutions Kingdom and the United States of America
empowered by our core values T.I.G.E.R. including long-term savings and investment products.

Strategic
Business Units
M
alayan Banking Berhad is the holding company International Operations Maybank Cambodia Plc (MCP)
and listed entity for the Maybank Group. Our key MCP was established in 1993 and locally incorporated in
subsidiaries and associates are as follows: Maybank Singapore 2012. With 21 branches across Cambodia, it provides a full range
Maybank Singapore Limited (MSL), the Group’s of banking services for emerging affluent and affluent consumers,
Islamic Banking Singapore-incorporated subsidiary, is recognised as a domestic SMEs and corporate clients.
Maybank Group Islamic Banking (MGIB) is the largest Islamic banking systemically important bank (D-SIB) with Qualifying Full Bank
group by assets in ASEAN. This position is supported by our Islamic- (QBF) privileges. MSL operates the retail and commercial Maybank Vietnam
first approach where Shariah-compliant products and services are businesses in 18 branches and has access to over 200 ATMs Maybank Vietnam was established in 1995 with two
standard offerings. MGIB operates by leveraging the Group’s system, across the country as part of atm5, Singapore’s only shared branches -- in Ho Chi Minh and Hanoi -- that provide wholesale
IT infrastructure and distribution network of 352 Maybank touchpoints ATM network among six participating QBFs. On the other banking services to regional corporate clients.
in Malaysia, and has presence in Indonesia, Singapore, Hong Kong, the hand, Maybank’s Singapore Branch operates the corporate and
United Kingdom (UK) and the United Arab Emirates (UAE). institutional businesses in nine branch locations. Maybank Myanmar
Maybank Myanmar was established as a Representative
Insurance & Takaful Maybank Indonesia (PT Bank Maybank Indonesia Tbk) Office in 1994 and became the only Malaysian bank to be granted
Etiqa is a leading Insurance and Takaful business in ASEAN, offering Maybank Indonesia is one of the largest commercial a full branch banking license in 2014, providing wholesale banking
a full range of Life and General insurance policies as well as Family banks in Indonesia by assets and is listed on the Indonesia services to foreign and local corporates, as well as domestic
and General Takaful plans via more than 10,000 agents, 46 branches Stock Exchange (Ticker: BNII). It offers retail, non-retail and financial institutions.
and 17 offices. It also has a bancassurance network comprising over global banking products and services through its network of 356
490 branches, cooperatives, brokers and online platforms across branches (which includes 19 Shariah branches and one overseas Maybank Laos
Malaysia, Singapore, Indonesia, the Philippines and Cambodia. branch in Mumbai), 1,033 ATMs, as well as mobile and internet Maybank Laos was established in 2012 with one branch
banking services. in Vientiane that provides commercial banking services to retail
Investment Banking SMEs, mid-tier local and ASEAN corporate clients.
Maybank Investment Banking Group (Maybank IBG), formerly Maybank Greater China
Maybank Kim Eng, is the largest homegrown investment bank Established in Hong Kong in 1962, Maybank Grater Maybank Brunei
in ASEAN. It comprises Maybank Investment Bank Berhad and China has since expanded to include branches in Maybank Brunei was established in 1960 and has two
Maybank IBG Holdings Limited (formerly Maybank Kim Eng Holdings Shanghai, Beijing, Kunming and Shenzhen where branches located in Bandar Seri Begawan and Seria offering a
Limited), with the latter having licensed entities in Singapore, it provides wholesale banking services primarily to inbound/ wide range of retail and commercial banking services.
Thailand, the Philippines, Indonesia, Vietnam, Hong Kong, India, UK outbound ASEAN corporate clients, domestic corporates with
and the United Stated of America. With a total of 45 branches and regional operations/projects as well as financial institutions. Maybank New York
100 touchpoints, Maybank IBG offers investment banking solutions Maybank Hong Kong also serves Private Wealth customers. Established in 1984, Maybank New York offers
supported by on-ground ESG, macro, sector and company research. wholesale banking services focusing on corporate lending, loan
Maybank Philippines Incorporated (MPI) syndications and bilateral arrangements, treasury and capital
Asset Management MPI is a full-fledged commercial bank established in markets as well as trade finance services to corporate clients.
Maybank Asset Management Group Berhad (MAMG) operates in 1997 serving retail and corporate clients through its more than
Malaysia, Singapore and Indonesia, offering conventional, Islamic, 60 branches across the Philippines. Maybank London
environmental, social and governance (ESG) and alternative Established in 1962, Maybank London offers wholesale
investment solutions for corporate, institutional and mass retail banking services primarily to Maybank’s regional ASEAN
investors as well as high net worth (HNW) individuals. corporate clients focusing on capital markets, trade finance
services and global markets.
Group Corporate
Structure
MALAYAN BANKING BERHAD
COMMERCIAL BANKING ISLAMIC BANKING INSURANCE & TAKAFUL ASSET MANAGEMENT
ISLAMIC BANKING 100% Maybank International Holdings Sdn Bhd 100% Etiqa International Holdings Sdn Bhd 80% Maybank Asset Management
(Investment Holding) (Investment Holding) Group Berhad (Investment Holding)
100% Maybank Islamic Berhad
(Islamic Banking) 100% Maybank IBG Holdings Limited (formerly known as Maybank 69.05% Maybank Ageas Holdings Berhad
Kim Eng Holdings Limited) (Investment Holding) (Investment Holding)
98.54% PT Bank Maybank 100% Maybank Asset
Indonesia Tbk (Banking) 100% Maybank Securities Pte Ltd (formerly known as Maybank 100% Etiqa General Insurance Berhad Management Sdn Bhd
Kim Eng Securities Pte Ltd)(Dealing in Securities) (General insurance business) (Fund Management)
99.99% PT Maybank Indonesia 100% 99% PT Maybank

Finance(Multi-financing) 83.50% Maybank Securities (Thailand) Public Company Etiqa Family Takaful Berhad
Limited (formerly known as Maybank Kim Eng (Family Takaful and investment-linked Asset Management
businesses) (Fund Management)
Securities (Thailand) Public Company Limited (Dealing
in Securities)
68.55% PT Wahana Ottomitra 100% Etiqa Life Insurance Berhad 100% Amanah Mutual Berhad
Multiartha Tbk 100% Maybank Kim Eng Capital, Inc (Life insurance and investment- (Fund Management)
(Multi-Financing) (Corporate Finance & Financial and linked businesses)
100% Maybank Islamic Asset
Investment Advisory) Management Sdn Bhd
99.86% Maybank Philippines, 100% Etiqa General Takaful Berhad
Incorporated (Banking) (Fund Management)
100% Maybank Securities Inc (formerly known (General Takaful business)
as Maybank ATR Kim Eng Securities, Inc.) 100% Maybank Private Equity Sdn Bhd
(Dealing in Securities) 100% Etiqa Insurance Pte Ltd (General insurance
100% Maybank (Cambodia) Plc and life insurance businesses) (Private Equity Investments)
(Banking) 99.78% @@ PT Maybank Sekuritas Indonesia (formerly
known as PT Maybank Kim Eng Sekuritas) 100% Etiqa Life International (L) Limited
100% Maybank Singapore (Dealing in Securities) (Offshore investment-linked business)
Limited (Banking) 100% Maybank Asset Management
18.78% MCB Bank Limited 100% Maybank Securities (London) Limited (formerly 100% Etiqa Offshore Insurance (L) Limited Singapore Pte Ltd
(Banking) known as Maybank Kim Eng Securities (London) Limited) (Bureau Services) (Fund Management)
(Dealing in Securities)
16.39% An Binh Commercial Joint 79.87% PT Asuransi Etiqa Internasional Indonesia
Stock Bank (Banking) 100% Maybank Securities USA Inc (formerly known as (General Insurance business)
OTHERS
Maybank Kim Eng Securities USA Inc) (Dealing in Securities)
95.24%@ Etiqa Life and General Assurance Philippines Inc
19.70% 100% MIB Securities (Hong Kong) Limited (formerly (General Insurance and life Insurance businesses)
Uzbek Leasing
International A.O. known as Maybank Kim Eng Securities (Hong Kong) 100% Maybank Trustees Berhad
100%*** Etiqa General Insurance (Cambodia) Plc
(Trustee Services)
(Leasing) Limited) (Dealing in Securities) (General Insurance business)
100% MIB Securities India Private Limited 100%*** Etiqa Life Insurance (Cambodia) Plc 100% Maybank Shared Services
(formerly known as Kim Eng Securities India Private (Life insurance and investment-linked businesses) Sdn Bhd (IT Shared Services)
Limited) (Dealing in Securities)
100% Etiqa Digital Solutions Sdn Bhd
100% MBB Labs Pte Ltd
100% Maybank Kim Eng Securities Limited (Other IT, business management consultancy/
(IT Development)
(Dealing in Securities) support services)
Other Subsidiaries 100% BinaFikir Sdn Bhd

(Business/economic
100% Maybank Investment Bank Berhad consultancy and advisory)
35.33% Anfaal Capital^ (Investment Banking) Other subsidiaries

Other Subsidiaries
NOTES:
1. This Chart is not the complete list of Maybank subsidiaries and associates. Companies that are not shown include those that are dormant, under liquidation, have ceased operations, or are property investment or nominee services
companies. For the complete list refer to Note 66: Details of Subsidiaries, Deemed Controlled Structured Entities, Associates and Joint Ventures in the Financial Book of the Maybank Group 2021 Annual Report.
2. Where investment holding companies are omitted, shareholdings are shown as effective interest.
* Effective interest held by the Group, Refer to Note 66, footnote 14, page 263 in the Maybank Group 2021 Annual Report Financial Book for the details.
** 0.01% is held by Dourado Tora Holdings Sdn Bhd.
*** 99.98% isheld by Etiqa International Holdings Sdn Bhd.
^ Joint Venture.
@ Effective interest held by the Group. 54.66% is held by Etiqa International Holdings Sdn Bhd and 40.58% is held by Maybank Kim Eng Capital, Inc.
@@ Effective interest held by the Group. 85% is held by Maybank IBG Holdings Limited and 15% is held by PT Maybank Indonesia Finance (14.78% effective interest held by the Group).
Key Messages
to Stakeholders
“
Echoing the stance of our parent bank,
our topmost priority during the pandemic
has been to safeguard the well-being of
our people and our customers.
Chairman's
Message
“
"Humanizing the new banking experience”,
this year’s theme of the Annual Report
captures the Maybank Group’s overriding
objective: to build a sustainable, ethical
and profitable company that is future
ready through its products, projects
and contributions...
Fauziah
Chairman of the Board
Maybank Philippines, Inc.
Hisham
T
here is no denying the challenges we faced over the Despite the operational and financial pressures brought As we enter our second year of the M25 plan, we remain
past year — as individuals and communities, as a on by the pandemic, Maybank Group delivered a commendable focused on income growth from fee based opportunities in
company and workplace, and as part of a global society. performance in FY2021 on the back of stronger net operating wealth management, global markets, investment banking and
As the global economy is gradually recovering from the income, diligent cost management and lower impairment asset management by leveraging our digital capabilities.
COVID-19 recession, we are optimistic that this signals the losses on an improving regional economic outlook. We accomplished significantly and I’m very pleased with our
dawn of a new growth cycle for the economy. On the back of our lower provisioning and improved progress on several fronts, including the appointment of our first
While the disruption caused by the COVID-19 pandemic pre-provisioning operating profit, Maybank Group’s net profit Filipina President and CEO Abigail ‘Gail’ Del Rosario. In February
has brought many challenges for Maybank Philippines, it has grew by 24.9% YoY to RM8.10 billion while earnings per share 2021, Gail took the reins of Maybank Philippines as PCEO
also taught us very important lessons. Primarily, it is putting was up by 20.8%. The Group’s ROE came in at 9.8%, above officer-in-charge. Until her official appointment in November
people first in our hierarchy of needs: the need to protect our guidance of circa 9% for FY2021. 2021, Gail was driving our strategic plan to improve our financial
our customers, our colleagues, and our communities the best Maybank Group’s strategy in managing risks well, performance and shareholder value, which generated our strong
way we can. We are humbled that we have emerged from the maintaining a diversified portfolio, improving efficiency across the 2021 financial results. She has been successfully refocusing our
pandemic stronger, more focused and better positioned to network as well as leveraging on digital capabilities have helped organization on enhancing strategy execution and growing
deliver on our mission of humanizing financial services, us to continue creating value for all our stakeholders to sustain earnings with the Board’s full endorsement.
and making time to be a force for good. the Group’s performance in today’s disruptive environment. “Humanizing the new banking experience”, this year’s
We doubled our efforts in making it a better year for The Group’s long-term strategy has paved for Maybank theme of the Annual Report captures the Maybank Group’s
the Maybank Group. While it may have been a busy year, Philippines to register a strong performance in 2021. overriding objective: to build a sustainable, ethical and
it was rewarding for good reason. We witnessed the launch The Bank’s assets grew to PhP102.4 billion with operating profitable company that is future ready through its products,
of our new five-year strategy, M25 where three long-term income reaching PhP5.4 billion. Improvements in risk projects and contributions, as it generates enduring value
goals were outlined, namely: achieving a Sustainable Return management, operational efficiency as well as expanded for all stakeholders and the communities it works in.
on Equity (ROE), offering a Top Rated Customer Experience automation and digitization of processes enabled the Bank to Most significantly, we are committed to deepen our
and becoming a Regional ESG Leader by 2025, supported register a 32.6% reduction in operating expenses, leading to accountability in embedding sustainability in our operations.
by a focus on three strategic priorities – Pervasively Digital, an income before taxes of PHP 724.4 million for the year. We are steadfast in creating greater sustainability awareness
New Value Drivers, and Sustainability. within the organisation through training programmes to build
sustainability capabilities among Maybankers and constant
reinforcement of messages through internal newsletters and
multi-media platforms.
Note of gratitude: We will continue to put sustainability at the forefront
of our business, balancing between economic objectives
I would like to express my gratitude to all our Maybankers for valiantly fighting through the and social responsibility to the best of our abilities.
challenges posed by this unprecedented crisis. My sincerest thanks to the Management Team
and to the Board for their continued guidance and support.
Let us keep our confidence in the future today for a sustainable value for all. FAUZIAH HISHAM
Chairman of the Board
President's
Message
“
In 2021, digital monetary transactions
grew by 49% YoY, resulting to a
growth in digital fee-based income
by 2.09 times, while our digital sales
penetration reached 64.8%.
Abigail Tina
M. Del Rosario
President & Chief Executive Officer

O
digital monetary transactions grew by 49% YoY, resulting Despite the uptrend in the banking industry’s non-
n behalf of the management and staff of Maybank to a growth in digital fee-based income by 2.09 times, performing loans, we were able to manage our NPL portfolio
Philippines Inc., allow me to share with you our while our digital sales penetration reached 64.8%. In addition, with an improvement in volume from PHP 4.7B in December
operating results for the financial year which the number of active users of our M2U platform grew by 13%. 2020 to PHP 4.1B in December 2021. This enabled us to end
ended 31 December 2021. At the same time, we continued to accelerate the growth FY21 with provisions of PHP 129M, far from the PHP 2.9B from
The year 2021 has been marked by a great number of our affluent customer base by further strengthening our the preceding year and the PHP 418M budgeted provisions,
of changes and required a good deal of reinvestment and Premier capacity and capability. In 2021, the Premier segment largely contributed by write-backs amounting to PHP 508M.
retooling to create new engines of growth. This year also grew its client base by 21.06%, with total Asset Under We were able to perform better and were able to avoid
saw the Bank recovering from the height of the economic Management (AUM) growing by 11.3%, investments growing deterioration of our asset quality by reallocating resources
standstill in 2020, registering a Profit Before Tax (PBT) by 39.8%, and bancassurance doubling its portfolio. towards account servicing and collections.
of P724M for 2021. Meanwhile, given the contraction in our loan balances, While strict quarantine measures affected sales
I am pleased to report that, while the health pandemic excess funding and unnecessary funding costs have been mobility, we migrated a good number of headcount from
still remains a challenge to the Bank’s operations and revenue, unloaded, resulting in lower cost of funds at 1.0% for 2021 our salesforce into the asset quality management team.
we were able to reinvest our resources into lines of business compared to the 1.8% in 2020. Still, low cost CASA deposits We also bolstered our remedial efforts, offering restructuring
that will drive future profitability given the changes in the increased by 2.6%, improving our CASA ratio to 63.2% programs and penalty waivers to clients. Furthermore,
business environment. in December 2021 from 54.8% in December 2020. training programs were conducted online that equipped
the repurposed staff with the skills necessary to ensure
Growth Transition Preventive Asset Quality Management proper asset quality management.
With the shift in business environment owing to the Given the economic downturn that started in 2020 Effective ROPA disposal was also evident with the decline
implementation of the quarantine protocols during the health arising from COVID-19, the banking industry’s non-performing in the volume of repossessed assets by PHP 168M YoY.
pandemic, some of our business partners were unable to loan portfolio increased by almost two-fold during that MPI remains well capitalized with capital adequacy ratio
operate uninterruptedly as they normally would. As such, year. Based on Bangko Sentral ng Pilipinas (BSP) data, at 21% as of yearend 2021, more than 200% of BSP’s minimum
our loan portfolio contracted by 16.7% as lower economic NPLs increased from PHP 156.1B to PHP 308.3B between regulatory requirement of 10.0%.
activity reduced the need for lending. December 2019 and December 2020 which further went
We focused on acquiring new customers by leveraging up to PHP 371.2B by December 2021.
on our phygital (physical/digital) distribution structure in
delivering new products and services to our clients. In 2021,
President's
Message
Sustained on-the Ground Operations to Enforce • Migration of all training programs to online learning, our niche segments such as a financial wellness event,
COVID-19 Health Standards ensuring all personnel were able to complete required co-hosted with ETIQA and ATRKE.
We were able to adapt quickly with the challenges of regulatory training programs and were aware of new
the COVID-19 pandemic, with our operations continuing to bank policies given the new normal. Prospects for 2022
meet our clients’ requirements despite the largest nationwide • Provision of Antigen Testing Kits to employees and The country’s potential for growth remains robust with
quarantine in the country’s history. In 2021, we continued to requiring them to test regularly and prior to returning the Philippines expected to make a full economic recovery
adhere to strict health protocols while constantly updating to work on-site. in 2022. Maybank Philippines is poised to ride the wave of
our policies and procedures, which included: • Strict enforcement of social distancing and co-mingling recovery given our reinvestment of focus lines on businesses
• Implementation of weekly Crisis Management Team protocols in the workplace. that have become more profitable given the new operating
meetings which consistently reviewed our policies and environment. Hand-in-hand, we will grow in our selected
procedures given the health pandemic. Strengthening Our Brand and Employer Equity niche segments aggressively while vigilantly managing risks
• Migration of over 50% of our workforce to a work-from- A continuous shift to digital channels was exhibited by and ensuring regulatory compliance.
home arrangement with adequate tools to perform their consumers in 2021. In adapting to this, we continue to hold
duties during the period of the community quarantine. our quarterly town hall online, with over 1,000 Maybankers Acknowledgements
• Provision of transportation and accommodation for attending from nationwide branches or those work-from- On behalf of the management and staff, I wish to thank
critical business functions that could not migrate to a home. We also hosted several online webinars targeted to the members of our Board, our customers, our partners
work-from-home arrangement, such as our Call Center. and our shareholders for their continued support.
We are also grateful for the continued guidance
of our regulators.
Acknowledgements Sincerely,

On behalf of the management and staff, I wish to thank the members of our Board, Abigail Tina M. Del Rosario
our customers, our partners and our shareholders for their continued support. President and CEO
We are also grateful for the continued guidance of our regulators. Maybank Philippines, Inc.

Financial
Highlights
2021 2020
Profitability in Php
Total Net Interest Income 4,141,541,069 4,598,052,558
Total Non-Interest Income 1,291,218,162 581,661,619
Total Non-Interest Expenses 4,289,791,054 4,201,062,169
Pre-Provisioning Profit 1,142,968,177 978,652,008
Provision for Impairment and Credit Loses 418,593,218 2,789,763,656
Profit Before Tax 724,374,959 (1,811,111,648)
Net Income 389,589,006 (1,442,785,029)
Selected Balance Data Sheet in Php
Liquid Assets 31,244,068,361 21,873,906,623
Gross Loans 49,568,323,721 59,527,045,401
Total Assets 102,428,894,132 101,161,762,643
Deposits 71,780,105,172 80,537,036,077
Total Equity 12,837,811,253 12,595,777,659
Selected Ratios
Return on Average Equity 3.06% -10.88%
Return on Average Assets 0.38% -1.29%
CET1 Capital Ratio 17.01% 13.62%
Capital Adequacy Ratio 21.02% 17.13%
Per Common Share Data
Net Income per Share 1.32 (4.90)
Basic 1.32 (4.90)
Diluted 1.09 (4.04)
Book Value Per Share
Total Equity 12,837,811,253 12,595,777,659
Average Outstanding Shares 294,666,980 294,666,980
Book Value per Share 43.57 42.75
Others
Cash Dividends Declared 0 0
Headcount 1,244 1,309
Officers 807 852
Staff 437 457
Review of 2021
Operations
“
Difficult lessons have been learned in 2021,
but these disruptions have tested our
mettle and resilience to rise above
the challenges and ensure banking
is business as usual for
our valued clients.

Community
Financial Services
R eflecting on the events that transpired in 2020, this famous

quote is most relevant: “light shines at the end of the tunnel…”
as this appropriately applies to 2021, with the hope and
promise that it brought. Despite 2021 being a long tunnel indeed,
Maybank Philippines, Inc. (MPI) is grateful to have ended the year
strong, thereby kicking-off our road to recovery as well as bringing
us back on track to our 2025 strategic journey (M25).
In 2021, Community Financial Services (CFS) continued to our support of these hubs – whether on resource or marketing support business and opportunity growth, the following branch optimization
be a significant driver to the overall financial performance of MPI, – to ensure we can facilitate growing our RSME business even further. endeavors were implemented: (1) We moved Alabang branch to a
contributing 58% of the Bank’s Profit Before Tax (PBT), 76% of total Credit cards also experienced steady growth as we adapted to better location within the same area for better client accessibility;
loans and 69% of deposit balances. the new normal setting by looking inward and going digital. New cards (2) New Premier Centers at Binondo and Greenhills branches were
While MPI’s consumer loans are still dominated by Auto business grew by 22% as we tapped existing clients via intensified cross-selling opened to cater to high net-worth clients within these locations;
(57%), we have seen exciting growth coming from Mortgage and RSME efforts, highlighting a “hassle-free” application process. Also, credit (3) By year-end, we completed the expansion of our Premier Center
businesses, both of which posted a significant turn-around from the card billings grew 17% from the previous year on the back of increased at Ayala Avenue-Makati, providing a more spacious and convenient
previous year. Overall, CFS PBT was 158% better than last year, mainly online and e-commerce transactions, as well as the resurgence of area for our growing base of affluent clients in the area.
due to a whopping 226% improvement in Non-Interest Income (NOII) Point-of-Sale (POS) transactions as we slowly returned to normalcy We carry over to 2022 our growth momentum that we started in
and a 121% improvement in provisions, with the latter showing our with the lifting of restrictions and the economy opening up. 2021. To further streamline our customer’s digital account experience,
focus and commitment on managing asset quality. Deposit levels were maintained at last year’s base but with we will roll out CASA straight-through processing Phase 2, enabling
Auto Loans still remains as MPI’s largest business, and in 2021 we tweaks to our product mix composition to put us in a more cost- real time, fully operational Maybank iSave accounts. With this, a
launched several initiatives to foster continued growth. To name a few efficient position, as we consciously grew our low-cost consumer customer will have no limits on their iSave accounts – unlimited
of the major activities: (1) we further strengthened our relationships CASA by 9%. In addition, we posted a 38% growth in CASA coming deposits, unlimited funds transfers and bills payment. Maybank
with partner dealers by launching our dealer-oriented campaign - Dealer from the resurgence of our RSME business, as mentioned earlier. Philippines will also rollout out Visa Debit in in two (2) variants –
Race for Incentive and Validation Event (D.R.I.V.E.) – which helped us With Sustainability as one of the main strategic pillars of the Bank Classic (for non-Premier clients) and Platinum (for Premier clients).
kick-start our business going into 2021; (2) we launched our Auto Direct for the next 5 years, CFS is geared towards digitization in order to address Visa Debit will allow Maybank’s customer to purchase goods and
Channel (ADC), whose sole objective was to put focus and push growth our clients’ present and future needs. Our digital platform – Maybank2U services from any Visa, Mastercard or Bancnet accredited point of sale
of auto loans through our branch network – immediately giving us good PH – combines the best facilities across our regional counterparts, making or online merchant while enjoying the full benefits of an ATM card.
results as branch sourced bookings jumped from a meager 3% in 2020, these available to the Philippine market. Last year alone saw numerous In 2022, we will work towards further enhancing our internal
to 8% by the end of 2021, despite only being launched mid-year; and improvements in the Maybank2U PH platform, which included among processes to do work more efficiently. We will continue with our
finally (3) our conscious efforts to be better, with the strengthening of others increasing our billers list to 386 partner merchants (including major journey on strengthening risk culture and enhancing complaints
our internal processes to improve our approval turn-around time (TAT), and real-time utility billers, RFID toll fee and other regional billers); adding management through automation and better transparency, as well as
while managing risk and not sacrificing on asset quality. top-up merchants such as Meralco Prepaid, PLDT Smart Prepaid Wifi, and forging more synergies and partnerships – internal and external –
Particular to Mortgage business, sales growth persevered Cignal Prepaid through our partnership with ECPay; and launching the to boost our digital acquisition and cross-sell initiatives.
despite intermittent lockdowns as we sought alternative ways to Maybank Credit Card EzyCash application via the website. Consequently, We in CFS will continue to put the community at the heart of our
source applications from our partner developers. The launch of additional functionalities were also made available last year in the mobile service, fully embracing the brand promise of Maybank Philippines Inc.
campaigns and developer incentive programs – such as the annual app, such as the availability of a recurring payment request, management to Humanize Financial Services. CFS proudly works hard to provide our
Tiger Cup - likewise helped in the accelerated growth last year. of future bills payment and funds transfer options. And to provide further clients with alternative and effective ways to bank, thereby enabling
In 2021, branch performance and productivity were reviewed delight to our users, clients can enjoy personalised background screens technical, personal and financial growth to come together – whether
and appropriately classified based on their respective business and birthday greetings when they access their M2U account. it be through the various client touch-points (physical or digital) or the
opportunities. Added to this, branches were also assessed on their In spite of our aim to be pervasively digital, we still kept to our offering of relevant products and services. We create these innovations
potential for being “hubs” for our RSME business. As RSME had also traditional banking roots by strategically placing our branch network to improve client experience and expand our reach by bringing our
shown a strong performance last year, we had consequently bulked-up within key locations across the country. To capture and support financial services closer to our valued clients.
Global
Banking
L
everaging on the foundation provided by Maybank
Group and Maybank Philippines Inc., Global Banking
(GB) strategically utilizes this combined network
and expertise in order to build and strengthen customer
relationships, and deliver solutions to institutional clients
across the ASEAN region.
The GB team is composed of the following business lines:
Client Coverage, Corporate Banking, Real Estate Finance,
Cash Management Services, Trade & Supply Chain Finance
and Financial Institutions.
Despite the lingering impact of COVID-19 and new
challenges brought about by surges of reported cases, new
virus variants and return to selective lockdowns in the first half
of 2021, GB managed to on-board new clients and book major
deals in the form of Omnibus Lines and Cash Management Payment Advice Service, PDDTS via M2E Bulk Payment included the proactive restructuring of loan clients in troubled
Services. These ensured a steady stream of interest and fee- Service, the implementation of Maybank2E Host-to-Host and industries and extensive remedial and recovery efforts toward
based income from both existing and new clients. development of the Virtual Account Centralized Collection defaulted borrowers.
The GB loan book stood at PHP 11,268 million by Solution, among others. Worthy to note that the volume and For year 2022, and cognizant that while the COVID-19
the end of 2021, down by PHP 3,193 million compared to value of corporate online transactions grew 102% and 94%, situation has improved and more businesses are gradually
2020’s loan level of PHP 14,460 million while total deposits respectively in 2021 vis-à-vis 2020 numbers. bouncing back, GB will shift onboarding and business
amounted to PHP 22,059 million with CASA comprising The M2E Payment Advice Service enables the customers generation efforts towards select top conglomerates in
51.3% of these deposits. Total net interest income to send emailed payment advice to their beneficiaries via the country and their subsidiaries. This strategy provides
amounted to PHP 812.0 million from PHP 987.0 million M2E. On the other hand, PDDTS via M2E Bulk Payment reassurance of better asset quality which will then keep loan-
in 2020 largely due to lower portfolio while non-interest Service allows the customers to send in bulk PDDTS loss provisions at bay. It is also expected to generate bigger
income reached PHP 71.0 million, a 45% hike from last transactions via M2E. The Maybank2E Host-to-Host service ticket-size deals for the Group.
year’s PHP 49.0 million, bringing GB’s contribution to permits customers to electronically interface with M2E To achieve this direction, the key strategy of GB includes
16.2% of MPI’s total revenues. through their host system. generating flow business, synergizing with the Maybank
For cash management services unit, over-all enrollments In view of the continued close monitoring of GB’s Investment Banking Group, and strengthening relationships
increased from 428 in 2020 to 585 in 2021 for a 34% growth. loan portfolio, paying more attention to borrowers whose with targeted conglomerates by catering to their expansion
Furthermore, enhancements to the product and service businesses were adversely affected by the health pandemic, requirements locally and in the ASEAN region where Maybank
offerings were made to add on to the features of our existing we managed to significantly reduce loan provisions, resulting has presence.
payments and collections services. These included the M2E to better bottom-line for year 2021. This strategic initiative

Global
Markets
T
he gradual reopening of the economy and accelerated support for economic growth. The Philippine government also While markets remained challenging especially when
rollout of vaccination in most countries saw 2021 get successfully raised Php 823 billion in the 25th and 26th tranches bond yields were rising both globally and locally, MPI Global
off to a promising start towards recovery. While the of its retail treasury bonds. More importantly, positive GDP Markets stuck to the plan of focusing on the FX space while
infectious delta and omicron variants continued to make in 3Q2021 onwards was maintained as the country slowly assuming a defensive stance in fixed income and a relative
inroads to the public, both locally and abroad, health and bounces back. short duration in the investments portfolio.
movement restrictions had been eased to help jumpstart Amidst the prolonged pandemic situation, we at We reinforced our unwavering commitment to customers
trade and commerce. MPI Global Markets continued to support our customers, by ensuring continuous and excellent service delivery during
In the Philippines, the Bangko Sentral ng Pilipinas (BSP) connecting them to growth opportunities while helping the pandemic – enabling us to focus more on supporting
kept its policy benchmark rate at a record low of 2% to remain them manage the risks of heightened uncertainties and customer flows and expand our foreign exchange and fixed
accommodative, and maintained its thrust towards continued market volatility. income product offerings to cater to the growing needs of our
institutional and retail clients.
Highlights:
• Growth in Fixed Income book brought by increased
participation in new issuances and more active
secondary trading
• Active promotion of GM products and services
through branch teach-ins and referral programs
• Strong recovery in Trading Desk revenues from
a poor 1Q2021
• FY2021 Revenue was at P963 million
2022 promises newer opportunities for growth, with
transitioning to more sustainable finance solutions and
differentiated financial advisory. GM will roll out fresh
products to suit customers’ requirements, while maintaining
strategies that worked from late 2021.
Pursuing more dynamic and stronger synergies within
the Maybank Philippines family and the entire Maybank
Group, MPI Global Markets remains committed to supporting
the aspirations of our customers.
Trust
M
aybank Philippines, Inc. Trust (MPI-Trust) offers a is still the biggest challenge we are facing, as this health Despite the health pandemic, MPI-Trust business’
wide array of Trust, Agency and Other Fiduciary pandemic requires each of us to be more agile in the coming continued growth resulted to a modest 3-Yr Compounded
arrangements. We service both retail and corporate years. With the support and guidance of the Trust Committee, Annual Growth Rate of 2%.
clients under various contractual arrangements, such as MPI-Trust was able to end the year stronger on both Assets
Personal Management Trust Account (PMT), Investment Under Management (AUM) and Trust Fees from 2020. Key Strategies
Management Account (IMA), Employee Benefit Trust (EBT), In 2022, Trust will embark into a new foreign
Escrows, and Corporate Agency Services. Some of the notable achievements are as follows: denominated UITF named Maybank Tiger USD Asian Income
MPI-Trust also offers Unit Investment Trust Fund, • Booked New-to-Trust accounts (322 PHP and 61 USD Feeder Fund which was already approved by the Bangko
commonly known as UITF. This comes in three variants: accounts), resulting to a net increase in AUM by P129M; Sentral ng Pilipinas (BSP). The Fund’s objective is to provide
Money Market Fund, Peso Bond Fund and USD Bond Fund, • Grew revenue by 27% from 2020; investors with capital growth and income over the medium
which are all structured as a Feeder Fund. Our UITFs are • Made available a wider asset universe to Trust clients term, by investing primarily in a portfolio of Asian fixed
labelled as Maybank UITF Tiger Funds to reflect the MPI brand. to invest into; and income securities and U.S. government debt.
The year 2021 was a year of recovery for the entire trust • Strengthened risk and compliance framework to support To provide alternative investments / assets that will
industry, including MPI-Trust, as proven by the continued the growing business of Trust. diversify clients’ portfolio and ensure constant improvements
growth in Trust Assets. Adapting to the new normal, however, in asset quality, Trust will continue to accredit alternative
investment outlets for MPI Trust clients.
We are also undergoing business transformation to focus
on various system enhancements and streamlining initiatives
to support continued growth and efficient transactions
processing for ease in customer experience.
With our current economic and market trends,
MPI-Trust was able to adapt to the different market scenarios
and continues to deliver trust products and services that
surpass customer expectations in value and every aspect
of customer services.

Information
Technology
I
nformation Technology stood firm in its commitment
to accelerate the digital transformation of MPI even in
the face of the pandemic. The need to modernize legacy
enterprise applications to stay competitive and strengthen
cybersecurity to protect the Bank from evolving internet
threats; the need for data analytics to drive business
processes; the continuous development of Robotic Process
Automations to streamline and focus on key strategic
capabilities; adapting hybrid work arrangements making Shifting to ‘New Normal’ Banking: With the acceleration The Virtual Account for Consolidated Collections was
people effective, mobile, and still productive amid the of digital transformation, we invested in projects to offered as a new cash management solution which enables
lockdown implemented nationwide –- these enhancements enable onboarding of clients, processing transaction and our Corporate Clients to consolidate their receivables from
continued to be our key focus areas each year. servicing clients digitally. The journey to be agile and strong various sources and provide ease of reconciliation.
Ultimately, Information Technology supports MPI collaboration with Operations and Business to leverage on
in achieving the M25 Strategic Priorities and Business new technologies and methods will lead to the creation of Information Technology Risk Management: In December
Strategic Thrusts: agility in building and growing the business new business models and value propositions. 2021, obsolescence management for critical applications
by enabling client solutions via digital transformation; VISA Debit was implemented to complement the Group’s was at 0% while for critical servers was at 1.67%. The
minimizing the time needed to generate new business and mission of digitalization and become the chosen digital bank favorable obsolescence risk is attributed to the execution
strengthening customer experience; adding and providing in the Region. This new product aims to increase card-base, of key initiatives such as the upgrade of AS/400 550 to
electronic security, data storage, and efficient communication worldwide usage and will entice more customers to open a P9 machine as well as the OS upgrade from V6r1 to V7R3;
thru a stable and resilient IT infrastructure. Maybank account. International withdrawal for all MPI VISA Nutanix Acropolis & WMWare Hypervisor firmware upgrade
debit card holders and Worldwide Merchant Acceptance to the latest version; and the migration of Windows OS and
Stable and Reliable Infrastructure: With the improvements in the (POS & e-CASA STP) are already available. Database Server 2008 to Windows 2016 & Windows 2019.
DR Network infrastructure, increase of server resources, migration Continuing the Digital Roadmap, we embarked on CASA
of new servers in DR Nutanix and upgrade of the core-banking STP Phase 2 which introduced the ID validation and liveliness Information and Cyber Security: For MPI, making considerable
hardware and operating system in 2021, stability and reliability detection capability of our Straight Through Process (STP) investment on cybersecurity continues to grow. As we are
of the Bank’s IT infrastructure sustainability have been put into Online Application for Savings Account via M2U Application undergoing digital transformation, there is a great need protect
crucible via successfully completing the 5-day live DR exercise. streamlined and improved the customer experience on our digital business assets and environment. We have been
opening an iSave account. assessing the risks of data breaches and realizing the amount
Secure Connectivity and Work Anywhere. With the Since 2019, the Mobile UI/UX has been enhanced to of financial and other losses that can be avoided by developing
implementation of Network Access Control system, network incorporate new services and continue the momentum and a comprehensive cybersecurity strategy. In 2021, key initiatives
access to compliant and authorized devices was easily digital push of MPI. In 2021, credit card order taking services have been successfully implemented such as the Cyber Defense
managed. To enable routers to exchange information more were added to make it more accessible to customers while Capability, Review of VPN Security Infrastructure, Endpoint
efficiently, the Network Dynamic routing EIGRP (Enhanced recurring payments and customization of future payments Detection Response (FireEye), Virtual Patching (Deep Security) and
Interior Gateway Routing Protocol) on all MPI back bone & fund transfers went live in the tail end of the same year, Privilege Access Management (CyberArk). Deployment of these
routers was done. We will further enable mobility and work including birthday greeting and changing background screens, activities serves as ground work to have Zero-Trust architecture
from home or hybrid capability not only to keep our people giving the M2U App a personalized experience. and brought Maybank Philippines to reach the Group’s target
safe but also productive. maturity level of 4.0 on information security and cyber security.
Central
Operations
A
midst the challenges brought about by the global Mandatory e-learning courses as well as coaching discussions implement digitization and automation initiatives to improve
health pandemic, Central Operations continue were continuously conducted. This constant learning and client experience, establish standardized and future-ready
to adapt to the many possibilities of what we call feedback mechanism kept the team better informed and more processes, increase productivity and provide cost-effective
the “new normal”. Then and now, Central Operations has vigilant in performing essential functions in a highly volatile services. The team has lined up a number of robotic process
strengthened its business continuity plan to ensure that financial environment. automation projects as well as local and other Group-wide
efficient processes are in place to withstand any further initiatives for the year.
disruption in the delivery of financial services to clients. 3. Agility, Digitization and Automation Central Operations will continue to navigate
These Initiatives implemented at the height of the As the country moves towards the new normal, progressively in order to quickly adapt to a changing business
pandemic resulted to strong reinforcement and improvement: businesses are now conducting their operations with less environment and deliver even stronger performance results.
restrictions and as such, transactions are expected to Streamlining processes – including simple ways of reducing
1. Resiliency continuously grow, initially at a steady pace but eventually the use of paper, to innovations on automation, use of
Business resiliency is key to business operations. with increased momentum. For Central Operations, this is robotics and end-to-end process reviews will be the banner
It was imperative to put in place mechanisms to ensure an opportunity to review and challenge processes as well as of the Sector in 2022.
the team’s flexibility to promptly respond to the fast-paced
changes in both the market and the needs of our clients.
Split operations served a crucial role in sustaining service
delivery. As business transactions began to increase, Central
Operations aligned its support with the needs of the business.
An alternative structure comprised of representatives from
other functional units is underway as part of the team’s
contingency plans for critical roles. Hybrid work arrangements
were likewise initiated to strengthen processes and to ensure
the preparedness of the team for any business disruption.
2. Risk and Control

Despite the volatility of the year 2021, Central
Operations proved that strict adherence to functional controls
remains a top priority. Challenges from the past were used as
a learning experience in achieving work efficiency which were
evident in the team’s performance during reviews.
To embed a stronger risk-based culture, Central
Operations continued to invest time on training and coaching.

Human
Capital
D
eveloping Leaders, Accelerating Talents
As Maybank Philippines continues to develop and grow
world-class talents to deliver world-class results, the
Bank is supported by a strong Talent Management Policy that
includes Succession Planning and the acceleration of identified
potential successors for Mission Critical Positions (MCPs) and
Operations Critical Positions. (OCPs).
Succession Planning is well in place in the Bank, where
leadership bench is reviewed annually at both Country and
Group levels. In 2021, the leadership bench is generally healthy
with 3.5:1 cover ratio for Mission Critical Positions (MCP) and
1:1 cover ratio for Operational Critical Positions (OCP).
Consistent with its goal of becoming FutureReady by with Leadership (94%), Communication (93%) and Operating negotiation in Maybank Philippines, as currently recorded in
being agile, the Bank continues to develop and accelerate Efficiency (91%) being most recognized. the local banking industry. This was commended by no less the
its talents through exposure and experiential development The following programs have helped ensure that Department of Labor and Employment – National Conciliation
programs. In 2021, 24 employees were appointed as officers- employee experience is of utmost importance: and Mediation Board for the speedy and peaceful negotiation.
in-charge and underwent a developmental plan; out of which
nine (9) are confirmed to full time positions. • Zoom Engagement Sessions – skip level sessions done Internal Communication Channels
online meant as kumustahan, in lieu of the informal • M.E.N.U. (Milestones, Engagements, News, Updates)
Culture Reinforcement Programs coffee session done pre-pandemic. This provided insights Newsletter – Published monthly to disseminate
Anchored on the Bank’s T.I.G.E.R. Values of Teamwork, on the ground on matters of engagement, productivity, the PCEO Message, business milestones, recent and
Integrity, Growth, Excellence and Efficiency, and Relationship and work relationships. upcoming events and engagements, trainings, currently
Building, MPI continued on the success of its flagship program • Facebook Live and Learn Sessions– MPI continues promoted business products and services, human
that was launched a year ago: Learning Never Stops, a group- to leverage on the power of social media through its interest stories of employees and community partners,
wide online campaign which promotes continuous and self- interactive virtual bi-monthly FB sessions, where the and relevant bank announcements.
paced learning through a wide range of capability-building Management Committee and the Bank’s Subject Matter • Enterprise Social Network (MPI TIGERS - Facebook
programs made available to all employees through various Experts address and discuss health & social issues, Closed Group) – Used by Maybank Philippines to
learning platforms and methods. business strategies and market insights. collaborate and communicate projects, initiatives, and
Various programs and channels were organized and • Virtual Town Hall – a virtual event attended by programs online. Used by Maybankers to share and
launched to engage the employees and reinforce the Bank’s employees where the Management Committee cascades comment on work-related ideas, news, and activities.
culture such as the following: updates on the Bank’s financial performance, strategies • Point-of-Contact (POC) and Team Leaders (TL) Meeting
and business achievements. – A weekly virtual meeting presided over by Human
Employee Engagement Initiative Capital and attended by all identified POCs and TLs of
Despite the challenges of the pandemic in the past two Industrial Relations business and support groups which aims to cascade and
years, the Bank improved its employee engagement scores, MPI successfully closed a record-setting one-day meeting discuss information and issues related to COVID-19 SOPs
where 87% of the MPI personnel participated in the survey conclusion of the CBA negotiation, the shortest and fastest and other people-related matters.
Key Corporate
Milestones
by then MPI PCEO Choong Wai Hong, eTiqa tenants and their families severely affected by
Philippines President Rico T. Bautista, CFS Typhoon Rolly (international name: Goni) in
Head Abigail Tina M. del Rosario, MPI CFS Bicol area and Typhoon Ulysses (international
leaders, MPI Wealth Management Team, name: Vamco) in Isabela province.
MPI Offices and Branch Employes, eTiqa
Group and eTiqa Philippines Executive and 24 MARCH | COMMUNITY
eTiqa Financial Advisors. Maybank Philippines formally handed over 100
sets of Level-4 personal protective equipment
31 JANUARY | INTERNAL ENGAGEMENT (PPE) for the use frontliners of Southern
In celebration of Maybank Group’s 60 years Philippines Medical Center, a designated
of strong international leadership, Covid-19 referral hospital in Davao City.
Maybank Philippines launched the digital
23 JANUARY | BUSINESS book “Power of 60” – a collection of 60 28 APRIL | BUSINESS
Maybank Philippines Community Financial micro-stories creatively written in 60 words Maybank Philippines, Inc. (MPI) and eTiqa
Services (MPI CFS) teams from sales, by 60 MPI Tigers whose loyalty has been Philippines celebrated together MPI’s 2020
support and operations gathered virtually proven and whose business contribution Top Achievers during the Banca Brilliant
to attend the first CFS rally themed MORE has been recognized. Banker 2020 Awards Night held virtually and
(Move Onwards Revitalized, Energized) AS streamed live via MPI Tigers Facebook Group.
ONE. Attended by 900 Maybankers from all 24 MARCH | COMMUNITY The virtual ceremony trained the spotlight on
over the Philippines, the rally aimed to set Maybank Philippines made a substantial the achievements of select Maybankers who
everyone in the same starting position in donation through program partner CFC- have made significant contributions to the 20 MAY | COMMUNITY
preparation for the 2021 race. Aside from the ANCOP Global Foundation Inc. to provide business despite a year full of challenging Maybank Philippines PCEO-OIC Abigail
CFS Top Team, MORE AS ONE was graced by for supplemental food packs to 250 farmer- and defining moments. Tina M. Del Rosario was one of key speakers
Group CFS CEO Dato’ John Chong and Group invited to the National Council for Disability
Chief Strategy Officer and CEO-International Affairs (NCDA) Webinar on Financial Literacy
Michael Foong. for Persons with Disabilities, presenting on
R.I.S.E. as Maybank Foundation’s Pathway
27 JANUARY | BUSINESS to Economic Empowerment of PWDs.
Maybank Philippines, Inc. (MPI) and eTiqa
Philippines fortified their existing alliance 21 MAY | BUSINESS
through a Bancassurance Exclusivity Maybank Philippines teamed up with trusted
Agreement signed in November 2019 and payment authority Bayad to boost bills
formally announced during the virtual Banca payment capability and augment the list of
One in 21 kick-off event, attended available billers on the MaybankPH 2U online
and mobile platforms.

08 JUNE | BUSINESS 24 NOVEMBER | BUSINESS

Premier banking services launched in Maybank Philippines hosted Enable
the heart of Manila’s Chinatown with the the Future: Leading Sustainability for
inauguration of the newly-renovated Maybank Responsible Finance, a year-end market
Binondo Branch and Premier Center. forum for clients. Bangko Sentral ng Pilipinas
Governor Benjamin E. Diokno and Finance
24 JUNE | ENGAGEMENT Secretary Carlos G. Dominguez III were
Maybank Philippines, Inc.’s (MPI) mid-year keynote speakers, and both were joined
Townhall culminated with the much-awaited by Undersecretary Rosemarie G. Edillon of
2021 STAR Awards, which recognised the National Economic and Development
exceptional Maybankers who delivered Authority and Senior Economist
outstanding performances in 2020 amidst Dr. Chua Hak Bin of Maybank Kim Eng.
the operational challenges brought about
by the pandemic. 26 NOVEMBER | COMMUNITY
The CashVille Kidz Financial Education
Excellence Awards (Philippines) 2021 was
highlight of Day 5 of the BSP (Bangko Sentral
ng Pilipinas) Financial Education Stakeholders
Expo 2021 hosted virtually and participated in
by key fin-ed partners and advocates. Maybank
Foundation and Maybank Philippines were key 26 DECEMBER | COMMUNITY
partners in the five-day event.
MPI provided assistance to its Maybank
22 DECEMBER | COMMUNITY VisMin family affected by Typhoon Odette by
sending over holiday Noche Buena food packs
Maybankers based in the Legaspi Towers and drinking water to 173 full-time employees
corporate office held a gift-giving program for and 98 outsourced personnel including
its LTC neighbors— pedicab drivers, sidewalk Security Guards, Messengers, Janitors and
vendors, security guards and street cleaners. Contractuals. Financial assistance through
A total of 50 food bags containing spaghetti the Maybank Staff Welfare Fund were also
packs, coffee, sugar, instant noodles and extended to those whose houses were
rice were given out to the beneficiaries by damaged by the typhoon.
Maybank volunteers.
Awards and
Citations
2020 2019 2018
Bangko Sentral ng Pilipinas Bankers Institute of Bangko Sentral ng Pilipinas
BSP Stakeholder Partner, the Philippines Inc. (BaiPhil) Special Citation on Accessibility
Financial Education 2020 2nd Runner-up, 2019 Best Bank
in Digital Financial Inclusion Award Ministry of International
The Digital Banker Trade and Industry, Malaysia
Global Retail Banking Bangko Sentral ng Pilipinas MATRADE Award –
Innovation Awards Finalist, Outstanding Partner Best Malaysia Brand
Best Digital Transformation for Innovative Mobile Financial
Program 2020 Services – Bank 16th Awards
Ceremony and Appreciation
World HRD Congress Lunch for BSP Stakeholders
15th Employer Branding Awards
Best Employer Brand City Government of Biñan
Award 2020 - Philippines 3rd City of Life Awards
2019 Outstanding PWD Project
for Biñan Conducted by a
Company/Organisation
Persons with Disability Affairs

Office (PDAO) and City Social
Welfare and Development
Office City Government of
Sta. Rosa, Laguna
Plaque of Appreciation
(for R.I.S.E. Program)
VISA Philippines
Best New Segment Launch
(for Maybank Visa Infinite Card)

Our
Leadership
“
Being a leader is never about the role,
but always about the goal. At all
times, it is about being the voice
people need to hear and
the inspiration to
make a difference.
Board of
Directors
Fauziah Hisham Abigail Tina M. Del Rosario Datuk Lim Hong Tat Manuel L. Tordesillas
Madam Chairman President & CEO Director Director

Renato T. De Guzman Atty. Ray C. Espinosa Pollie Sim Sio Hoong Jesus Roberto S. Reyes Simoun S. Ung
Director Director Director Director Director
Board of Directors
Profile
Puan Fauziah Hisham | Chairman of the Board Currently, Mr. De Guzman also serves as an Independent Pollie Sim Sio Hoong | Director
66 years old, Malaysia | Non-Independent, Non-Executive Director of JG Summit Holdings and Investment Capital Corporation 60 years old, Singapore | Non-Independent, Non-Executive
of the Philippines. Likewise, he is the Chairman of the Board of
Puan Fauziah Hisham was appointed Director of MPI in Nueva Ecija Good Samaritan Health Systems, Inc. An accomplished Ms. Pollie Sim was appointed Director of MPI in 2013. She is
September 2018, and subsequently elected as Chairman of the Board banker, Mr. De Guzman helped spur the growth of the private banking presently the Chairman of the Trust Committee and is a member
in April 2019. She is also an Independent Non-Executive Director of business in Asia while being the Chief Executive Officer of ING Asia of the Corporate Governance Committee.
Maybank and serves as Chairman of the Credit Review Committee Private Bank (acquired by Oversea-Chinese Banking Corporation in With over three decades of experience in the banking and
of the Maybank Board and as a member of the Risk Management 2010 and renamed it Bank of Singapore.) He was a Senior Advisor finance industry, Ms. Sim held several senior positions in the Maybank
Committee and Nomination and Remuneration Committee of the to the Bank of Singapore until September 2017. Group. Prior to her retirement in June 2018, she served as the Chief
Maybank Board. He also served in government as Chairman of the Government Executive Officer of the Group’s International Operations, covering
Puan Fauziah is an Associate Member of the Institute of Chartered Service Insurance System (GSIS) until 2016. Mr. De Guzman 14 countries, excluding Singapore and Indonesia.
Secretaries and Administrators, United Kingdom. She has over 30 years graduated with a degree in Bachelor of Science in Management Ms. Sim was also the CEO of Maybank Singapore from 2006
of experience in the banking industry, having worked in 3 foreign owned Engineering from the Ateneo de Manila University. He also holds to 2013, where she was instrumental in leading and developing
financial institutions throughout the span of her career. two Post-Graduate degrees: a Master of Business Administration Maybank’s retail banking business in the country. During her
She started her banking career with The Chase Manhattan (with Distinction) from the Katholieke Universiteit Leuven, Belgium stewardship, Maybank Singapore was recognized for Business
Bank in Malaysia (now known as J.P. Morgan Chase Bank Berhad) and a Masters in Management from McGill University, Canada. Excellence (BE) with the Singapore Quality Class STAR, Singapore
in 1980. Her last position at Chase Bank was as Executive Director Mr. De Guzman was named Outstanding Private Banker in Asia Service Class and Singapore Innovation Class certifications and the
and Chief Executive Officer, a position she held for four years. Pacific by Private Banker International in 2014, and Private Banker People Excellence Award – the first bank to attain all the BE standards
From 2006 to 2008, she was with Standard Chartered Bank (SCB) of the Year by Asian Private Banker in 2015. at an enterprise level in Singapore. In 2012, Ms. Sim was accorded
as Managing Director, Strategic Client Coverage Group. Thereafter, the IBF Distinguished Fellow (The Institute of Banking and Finance
in 2008, she joined the Australia & New Zealand Banking Atty. Ray C. Espinosa | Director – Singapore) and also received the Pacific Rim Bankers Program
Group (ANZ) Representative Office, Malaysia as Country Group 65 years old, Philippines | Independent, Non-Executive Distinguished Leadership Award for her pursuit in leadership and
Representative and Executive Director, Institutional Banking until organizational excellence.
her retirement in July 2014. She also served as an Independent Atty. Ray C. Espinosa assumed the position Director of the MPI
Non-Executive Director of J.P. Morgan Chase Bank Berhad in October Board on March 29, 2016. He is Chairman of the Risk Management Datuk Lim Hong Tat | Director
2014 and subsequently assumed the position of Non-Executive Committee and a member of the Trust Committee. 62 years old, Malaysia | Non-Independent, Non-Executive
Chairman of the Board from January 2015 until March 2018. Atty. Espinosa is currently the President/CEO of Manila Electric
Puan Fauziah also sits on the Board of Hengyuan Refining Company and presently holds corporate directorship positions in Datuk Lim Hong Tat was reinstated as a member of MPI’s Board
Company Berhad and Agensi Kaunseling dan Pengurusan Kredit (AKPK). several companies engaged in power, mining, telecommunications, of Directors in 2014. He is a member of the Audit Committee of the
other public utility and media businesses including: CIS Bayad Center Board (ACB) and the Board Strategy Committee.
Renato T. De Guzman | Director Inc., PLDT Inc., Roxas Holdings Inc., Metro Pacific Investments Corp., Datuk Lim was MPI’s President and CEO from 2000 to 2006 and
71 years old, Philippines | Independent, Non-Executive Lepanto Consolidated Mining Company, Infocomm Technologies, served as a Director from 2007 to 2010. He has more than 30 years
Parlance Systems Inc., Epldt Ventures Inc., Spi Global Solutions of experience in banking and finance. He joined the Maybank Group
Renato T. De Guzman became an Independent Director of Inc., Bayantrade, Bonifacio Communicators Corp., BusinessWorld upon graduation in 1981. He has covered all aspects of banking, having
Maybank Philippines, Inc. on March 29, 2016. He is the Chairman Publishing Corp., and Philstar Daily Inc. managed branches, regional banking, credit cards and international
of the Audit Committee of the Board (ACB) and a member of the Atty. Espinosa holds a Bachelor of Laws Degree from the banking operations, including holding senior management positions
Board Strategy Committee, Corporate Governance Committee, Ateneo de Manila Law School and placed first in the 1982 Philippine as Head of International Banking and Head of Consumer Banking in
and Related Party Transactions (RPT) Committee. Bar examination. He earned his Master of Laws degree from the the Maybank Group. Prior to his retirement in July 2018, Datuk Lim
University of Michigan Law School in 1988 and is a member of the served as the Group CEO, Community Financial Services and CEO
Integrated Bar of the Philippines. of Maybank Singapore (until November 2017).

Datuk Lim was the first Malaysian Banker to be awarded Mr. Ung is currently the President and Chief Executive Officer Prior to joining MPI as a Board Member, Mr. Reyes was the
the Retail Banker of 2014 by the Asian Banker, given to the most of OmniPay, Inc., Commissioner of PT Omni Pay Indonesia, Chairman President/Deputy CEO of Eastwest Banking Corporation from May
accomplished leader in the retail banking industry in the Asia Pacific of OmniPay (Malaysia) Sdn. Bhd. and Director of OmniPay Pte. Ltd. 2017 until December 2019. Before that, he was the Chief Financial
and the Middle East regions. In 2017, he was also awarded the Private He is also Vice Chairman of Bastion Payment Systems Corporation Officer of Union Bank of the Philippines and also served as SEVP/
Banker International and Retail Banker International CEPI Asia and serves as Treasurer of the Philippine eMoney Association and Treasurer for almost five years.
Leadership Award – Individual at the 4th Annual Cards & Electronics a Board member of the Philippine Payments Management, Inc. His past directorship experience were all from financial
Payments International Awards and the Asian Banker of the Year by He is also an Independent Director of the listed firm, Transpacific institutions, notably Eastwest Rural Bank, Eastwest Insurance
Fortune Times Magazine. Broadband Group International, Inc. Brokerage Inc., TROO Insurance, City Savings Bank, Inc.,
Holding the rank of Commander in the Philippine Coast Guard and SB Capital Investment Corp. to name a few.
Manuel N. Tordesillas | Director Auxiliary, Mr. Ung is Deputy Comptroller, National Headquarters. Mr. Reyes is a graduate of University of the Philippines, with
69 years old, Philippines | Non-Independent, Non-Executive He is also the Chairman of Security Disaster Resource Group a Bachelor in Science Degree in Mechanical Engineering. He also
Committee of the American Chamber of Commerce of the Philippines holds an M.B.A. degree from the Asian Institute of Management.
Manuel N. Tordesillas has been elected as a member of MPI’s and the immediate past Chairman of the Manila Country Council of
Board of Directors on March 23, 2018. He is a member of the Risk the U.S. State Department’s Overseas Security Advisory Council. Abigail Tina M. Del Rosario | President and Chief Executive Officer
Management Committee and the IT Steering Committee. He served as an Advisor to the Supreme Court of the Philippines 59 years old, Philippines | Non-Independent, Executive
Mr. Tordesillas also sits as Director in several companies, and was also a Consultant to the Commission on Elections and the
among them Tullet Prebon (Philippines) Inc., ATR Holdings, ATR Kim Office of International Policy and Special Concerns of the Abigail Tina M. Del Rosario was formally appointed as the first
Eng AMG Holdings, Inc., MET Holdings, Inc., ATRAM Investment Department of National Defense. female President and CEO of Maybank Philippines in 05 January
Management Partners Corp., ATRAM Trust Corporation and eTiqa Life Mr. Ung earned his Bachelor’s Degree in Psychology and 2022. Prior to this appointment, Gail was the Officer-In-Charge
& General Assurance Philippines - A Member of eTiqa Group. Economics from the University of British Columbia. He obtained (OIC) of MPI since 11 February 2021, and has steered MPI
He has over 40 years of international and local investment his M.B.A. from Richard Ivey School of Business at the University in achieving its financial targets during the last financial year.
banking experience. Before moving back to the Philippines in 1995, he of Western Ontario. He also completed the Property Management Gail joined Maybank Philippines in 23 July 2018 as Head
served as an Executive Director at Peregrine Capital Ltd. in Hong Kong, Course from University of Alberta, the 2nd Advanced Programme for of Community Financial Services, bringing with her more than
responsible for regional capital market activities in Southeast Asia. Central Bankers and Regulators at the Institute of Global Economics 20 years of extensive retail banking experience. She is well-known
Mr. Tordesillas obtained an M.B.A. from the Harvard Business and Finance of the Chinese University of Hong Kong as well as an in the financial industry as a charismatic and dynamic leader,
School and his Bachelor of Science in Industrial Management Executive Education Course on Creating Shared Value from Harvard having built successful teams as Country Head of Retail Banking
Engineering from De La Salle University. Business School. He was honored with the Outstanding Alumni in Standard Chartered Bank. She was also the Director of Price
Award in 2015 by Grace Christian College and the ACQ 2018 Global Solutions PI and Asia – Bancassurance, which are both subsidiaries
Simoun S. Ung | Director Awards International – GameChanger of the Year (FinTech). of Standard Chartered Bank. Prior to joining Maybank, she was a
54 years old, Philippines | Independent Director, Non-Executive Senior Vice President and Head of Wealth Management in East
Jesus Roberto S. Reyes | Director West Banking Corporation. She was also appointed as Chairman
Mr. Simoun S. Ung assumed the position of Independent 63 years old, Philippines | Independent Director, Non-Executive of BancNet in 2013, and continued as Director from 2005 to 2015.
Director of the MPI Board on December 3, 2019. He is Chairman of Gail graduated from the University of the Philippines with
the Corporate Governance Committee and is a member of the Audit Mr. Jesus Roberto S. Reyes was elected Independent Director of the a degree in Bachelor of Science in Business Management.
Committee of the Board (ACB), Related Party Transactions (RPT) MPI Board on September 11, 2020. He is Chairman of the Related Party
Committee, Board Strategy Committee and a member of the IT Transactions (RPT) Committee and is a member of the Risk Management
Steering Committee. Committee, Trust Committee and the Board Strategy Committee.
Management
Committee
Manuel G. Mark Lord D.

Likia Bosano III Limson
Chief Financial Head, Head,
Officer Global Banking Human Capital
Abigail Tina M. Patrick Dennis Andy Yeoh

Del Rosario Solosa Keong Yong
President and OIC, Treasurer and Head,
Chief Executive Community Financial Global Markets
Officer Services and Head,
Consumer Finance

April Theresa Ma. Bernadette Atty. Gerardo

D.C. Bernandino T. Ratcliffe J. De Leon
Acting Internal Chief Compliance Corporate Secretary
Audit Head Officer and Head, Legal
Jose A. Bernardo G. Rajagopal

Morales III Talimban, Jr. Ramasamy
Interim Head, Head, Chief Risk
Central Operations Information Officer
Technology
Management
Committee Profile
Abigail Tina M. Del Rosario finance includes devising and establishing business planning Andy obtained his Bachelor’s in Science degree from
President and Chief Executive Officer and strategies, corporate transactions, audit, information Monash University, Australia. He earned his Postgraduate
59 years old, Philippines management, and asset and liability management. Diploma in Accounting and Finance from Association of
Likia started his career in 1997 at PricewaterhouseCoopers Chartered Certified Accountants (ACCA), United Kingdom.
Abigail Tina M. Del Rosario was formally appointed as (PwC) Indonesia and Netherlands. He formally joined the He is a Certified Global Markets Professional in Singapore
the first female President and CEO of Maybank Philippines in banking industry in 2010 as PT. Bank International Indonesia’s and Hong Kong markets.
05 January 2022. Prior to this appointment, Gail was the Officer- Head of Business Planning. He later joined PT. Bank Permata
In-Charge (OIC) of MPI since 11 February 2021, and has steered Indonesia as the Head of Strategic Information Management. Jose A. Morales III
MPI in achieving its financial targets during the last financial year. Prior to his appointment in MPI, he was the Head of Business Interim Head, Central Operations
Gail joined Maybank Philippines in 23 July 2018 as Head Planning and Analytics of Maybank Indonesia for six years, 60 years old, Philippines
of Community Financial Services, bringing with her more than joining the bank in January 2014.
20 years of extensive retail banking experience. She is well- Likia holds a Bachelor’s degree in Economics from Jose Morales III joined Maybank Philippines in 2011
known in the financial industry as a charismatic and dynamic Tarumanagara University, Indonesia. He earned his Graduate as Senior Vice President and Chief Audit Executive, and
leader, having built successful teams as Country Head of Diploma in Management from Swinburne University of in 2021 was appointed Interim Head, Central Operations.
Retail Banking in Standard Chartered Bank. She was also the Technology, Australia. His experience in banking spans over 25 years, most of which
Director of Price Solutions PI and Asia – Bancassurance, are in branch banking, international treasury operations,
which are both subsidiaries of Standard Chartered Bank. Andy Yeoh (Yeoh Keong Yong) retail marketing, branch delivery systems, branch sales and
Prior to joining Maybank, she was a Senior Vice President Treasurer and Head, Global Markets marketing, and internal audit.
and Head of Wealth Management in East West Banking 56 years old, Singapore Joey started his career as a Junior Staff Auditor in SGC and
Corporation. She was also appointed as Chairman of BancNet Co. from 1982 to 1984. After which, he worked as an Internal
in 2013, and continued as Director from 2005 to 2015. Andy Yeoh was appointed as Maybank Philippines’ Audit Staff for the Commercial Bank of Manila from 1986 to
Gail graduated from the University of the Philippines Treasurer and Head, Global Markets on January 1, 2020. 1988 and from 1988 to 1990, he was with San Miguel Corp.
with a degree in Bachelor of Science in Business Management. Andy comes with more than 29 years of experience as a Senior Financial Analyst. From 1990 to 1999, he served as
in Treasury Markets mainly working for foreign banks such a Cash Center Head, Branch Manager, Overseas Remittance
Likia as Bank of Tokyo Mitsubishi Malaysia, Deutsche Bank and Head and Head of Branch Systems with the rank of Senior
Chief Financial Officer Canadian Imperial Bank of Commerce in different markets Manager in Union Bank of the Philippines. In 1999, Joey joined
48 years old, Indonesia of Malaysia, Hong Kong & Singapore. United Coconut Planters Bank to head the Branch Audit
Prior to his appointment in MPI, he spent 5 years Department with the rank of Vice President. After six years, he
Likia was appointed Chief Financial Officer of Maybank as a Senior Trader in Maybank Singapore. His extensive had a one-year stint in PricewaterhouseCoopers Philippines as
Philippines on January 1, 2020. He brings with him over 22 trading experience includes repo and collateral lending Director-Financial Services of the Advisory Group. From 2006
years of work experience in the financial services industry. with substantial experiences in trading all aspects of money to 2009, he worked for GE Money Bank as First Vice President
His extensive training and knowledge in accountancy and markets, foreign exchange, fixed income and OTC derivatives – Chief Audit Executive. Before joining MPI, he had a two-year
(both linear and non-linear). stint at RCBC Savings Bank as SVP for Operations.
Joey graduated with a Bachelor of Science in Commerce
degree, Major in Accounting, from San Beda College.

Patrick Dennis L. Solosa as IT Manager at ABN AMRO Bank. He later assumed the determination, by 2001, he was promoted to Vice President.
OIC, Community Financial Services Solutions Delivery Manager function and was instrumental He then moved to Keppelbank where he spent the next eight
and Head, Consumer Finance in growing the cash management business. With the merger (8) years holding various leadership positions in corporate
48 Years old, Philippines of Royal Bank of Scotland and ABN AMRO Bank in 2008, banking, consumer banking and retail banking.
he became AVP and Chief Technology Officer managing Prior to joining MPI in 2009 as Corporate Banking Head,
Patrick Dennis Solosa joined MPI on April 16, 2021 as both the Philippines and Vietnam operations. In 2010, Mannix also had stints with GE Money Bank (March 2005 to
Senior Vice President and Head of Consumer Finance. He was Bernie joined Bank of Commerce as Vice President and May 2008), Philippine National Bank (September 2008 to
concurrently appointed as Officer-in-Charge of Community Deputy Chief Information Officer concurrently handling the March 2009), and PNB- Capital and Investment Corporation
Financial Services on October 11, 2021. Pat led the Auto Project Management Office. During his stint, he initiated (April 2009 to June 2009).
Transformation Roadmap Phase 2 and 3 under Auto Working different transformation projects in core-banking, corporate Mannix is a graduate of AB Economics at San Beda College.
Group, which aims to increase Auto Loan profitability through and retail internet banking, eBusiness Suite, loans operations,
new initiatives to improve process, people, technology ATM switch fine-tuning amongst others. By 2013, he became Mark Lord D. Limson
and governance. First Vice President and Chief Information Officer. Head, Human Capital
As an OIC, he was instrumental to the overall improvement Bernie holds a Bachelor’s degree in Entrepreneural 45 years old, Philippines
of CFS’ 2021 PBT & NOII as well as the performance of MPI’s key Management from the Polytechnic University of the
business drivers: Mortgage & RSME, including deposits. Philippines (PUP) and earned his Master’s in Business Mark Lord D. Limson was appointed as Head of Human
Pat continues to provide leadership in managing the Administration from the University of Santo Tomas. Capital of Maybank Philippines on May 4, 2020.
Maybank’s retail business and ensure to meet its short and long- Mark comes with almost 20 years of experience in strategic
term goals and objectives, comply with its policies and regulatory Manuel G. Bosano III and leadership roles in all fields of Human Resources. He has
requirements, and maximize its return to our stakeholders. Head, Global Banking worked for various companies in different industries such as
53 years old, Philippines Philippines Savings Bank, Splash Corporation, Holcim Philippines,
Bernardo G. Talimban, Jr. Inc., and San Miguel Brewery, Inc. Prior to joining MPI, Mark was
Head, Information Technology Manuel G. Bosano III was appointed as Head of Global the Head of Human Resources of MetroPac Movers, Inc.
52 years old, Philippines Banking of Maybank Philippines in November 2017, and under Mark is a Certified Senior Professional in Human
his supervision are different units: Client Coverage, Corporate Resources, International (SPHRi) and a recognized Human
Bernardo G. Talimban, Jr. brings with him over 20 years of Banking, Global Markets and Transaction Banking. Resources professional, having been named 2019’s Top 100
IT experience when he joined Maybank Philippines as Head of Mannix started his career in the banking industry in 1989 Filipino to Follow on LinkedIn, World HRD Congress’ 2018’s
Information Technology in 2014, covering consulting, systems as an Operations Staff in Far East Bank and Trust Company. 100 Top Global HR Minds, CHRO Asia’s 2017’s Asia’s Top 50
development, project management, transaction banking solutions In 1994, he transferred to Asiatrust Development Bank as Human Resources Leaders Awardee and Workplace
delivery, business continuity, infrastructure and security. an Assistant Manager for Countryside Lending Group. He by Facebook’s 2017 Digital Visionary Awardee.
Bernie started as an analyst programmer and consultant then spent the next seven (7) years handling the Business Mark graduated with a degree in Bachelor of Science
for different manufacturing, oil and banking industries in the Development Group extending credit facilities to both in Business Administration at the University of the
country. He formally joined a financial institution in 1997, commercial and corporate clients. Due to his hard work and Philippines-Diliman.
Management
Committee Profile
Rajagopal Ramasamy Prior to MPI, Dette was with East West Bank for six years, Lipana & Co. (PricewaterhouseCoopers Philippines), handling
Chief Risk Officer starting out as Chief of Staff in 2012 and eventually became different companies in diverse industries rendering internal
57 years old, Malaysia Chief Compliance Officer two years later. audit outsourcing and risk management services. She also
Dette also taught Accounting and Finance at the had a short stint with Rustan Supermarkets, Inc. as Head of
Rajagopal Ramasamy was appointed as the Chief Credit University of the Philippines, handling various topics on Internal Audit Department.
Officer of Maybank Philippines in June 2018. management accounting, corporate finance and specialized April is a Certified Public Accountant (CPA), Certified
Raj brings with him more than 25 years of experience credit analysis in Development Center for Finance. She Internal Auditor (CIA), Accredited Internal Audit Quality
in credit risk encompassing end-to-end spectrum of credit, was also a lecturer in Corporate Finance and Accounting in Assessment Reviewer (QAR Assessor), Certified Fraud
specializing in corporate and commercial loans. He started University of Asia and the Pacific. Examiner (CFE), and gained Certification in Risk Management
his career in banking in 1991 and held various positions in the A Certified Public Accountant, Dette holds a Master Assurance Assessor (CRMA). She graduated with a degree in
area of credit including trade finance, branch credit, share of Business Administration (MBA) and a Bachelor in Science Bachelor of Science in Commerce Major in Accountancy from
financing, credit assessment and approval and remedial Major in Business Administration and Accountancy degrees De La Salle University.
management. His longest stint was with Maybank Group in University of the Philippines, Diliman, Quezon City.
Credit Risk Management, handling large corporates and Atty. Gerardo J. De Leon
independent power producers before his assignment in MPI April Theresa D.C. Bernandino Corporate Secretary and Head, Legal
in January 2016 as the Regional Credit Officer. Acting Internal Audit Head 57 years old, Philippines
He obtained his Bachelor’s Degree from the University 50 years old, Philippines
of Malaya in 1991 and went on to complete his MBA from Atty. Gerardo “Gerry” J. De Leon was appointed as the
the same university in 1998. He is also a Certified Credit April Theresa DC. Bernandino joined Maybank Philippines on Head of Legal and Corporate Secretary of Maybank Philippines
Professional by the Institute of Bankers Malaysia (IBBM) November 16, 2020 as Deputy Audit Head, and was subsequently on October 12, 2019. Prior to assuming the position, Atty. Gerry
and a Credit Trainer for Maybank. appointed Acting Head, Internal Audit on 1 February 2021. was previously the Deputy Head of Compliance, Chief Privacy
April comes with more than 20 years of experience in Officer, and Head of Regulatory Compliance.
Ma. Bernadette T. Ratcliffe strategic and leadership roles of Internal Auditing. Prior to Before joining MPI, Atty. Gerry was the General
Chief Compliance Officer joining MPI, she was the Internal Audit Head of Maybank Regulations Compliance Officer and Data Protection Officer
60 years old, Philippines ATR Kim Eng Philippines (MATRKE PH) from 2012 to 2020, of Security Bank Corporation where he was also appointed as
where she led the team that institutionalised Internal Audit Compliance Officer of its various subsidiaries and affiliates.
Joining Maybank Philippines in June 1, 2018 as Chief in the MARTKE Group of Companies. During her stint, April He practiced law for more than 20 years, performing legal
Compliance Officer, Ma. Bernadette T. Ratcliffe brings with introduced an internationally-accepted auditing framework research and writing to litigation (civil, criminal, special
her close to 30 years of extensive experience in compliance, together with conduct of preliminary meeting prior to proceedings, taxation and administrative law); regulatory
corporate governance, finance, strategic planning, business engagement, and an audit exit meeting for better partnership compliance; corporate secretarial; and preparation of
and management information systems, liquidity management, between the auditees and auditors, which were eventually pleadings, briefs, memoranda, and legal opinions.
investor relations, and credit analysis. adapted by the Group. Atty. Gerry earned his Bachelor’s degree in Accounting
Before MPI, April also worked with Joaquin Cunanan from the University of Santo Tomas. He obtained his Law
& Co. (Pricewaterhouse Philippines) and subsequently Isla Degree from San Beda University, formerly San Beda College.

Management
Directory
President Jose A. Morales III Joy B. Bitoy Maria Luisa C. Layug

Interim Head, Central Operations Head, Customer Experience Region Head
and Process Governance
Abigail Tina M. Del Rosario Angela R. Ofrecio Juanito C. Lucas
CEO, Maybank Philippines Head, Sales Desk Roxanne Beatriz S. Bradley Head, Loans Administration
Relationship Manager
Ma. Bernadette T. Ratcliffe Michael Y. Maglonzo
Executive Vice President Chief Compliance Officer Chester M. Caluag National Sales Team Head
Head, IT Audit
Patrick Dennis L. Solosa Michael B. Pagkalinawan
Rajagopal Ramasamy OIC, Community Financial Services Cristina B. Casipit Relationship Manager
MPI Chief Risk Officer and Head, Consumer Finance Head, Rates and ALM Desk
Jo-Anne D. Rodriguez
Bernardo G. Talimban Jr. Noel G. Chan Head, Retail Credit Center
Senior Vice Presidents Head, Information Technology Head, Mortgage
Errol Brian B. Sadie
Rolly G. Tamondong Stanley F. Chua Head, Solutions Delivery &
Delbert S. Ang It Head, Auto Finance Head, Purchasing, ROPA Applications
Head, Community Distribution and Admin
Jacqueline Grace B. Wieneke Paolo M. Salcedo
April Theresa DC. Bernandino Head, Wealth Management Enrico L. Cordoba Head, Cards & Unsecured Lending
Acting Internal Audit Head and Bancassurance Head, Corporate Planning
Antonette P. Santos
Manuel G. Bosano III Antonio C. Danao Head, Central Insurance
Head, MPI Global Banking Vice Presidents Head, MPI Trust
Santiago F. Sebastian
Likia Ma. Rosario C. Datuin Head, Non-Financial Risk
Chief Financial Officer April Katrina V. Albotra Region Head
Head, Transaction Banking Ronel Loreto R. Tapiador
Mark Lord D. Limson Gerardo J. De Leon Region Head
Head, MPI Human Capital Michael D. Banzon Head, Legal and Corporate Secretary
Head, Payments & Cash Services
Paolo Joaquin C. Maranon
Head, Trading Desk
Corporate
Governance
“
We believe that measures
to exercise good corporate
governance must be in place and
ingrained in our philosophy-- to
ensure that the business is run
responsibly and in turn protect all
our stakeholders.

M
aybank Philippines, Inc. (MPI) adheres to the values of integrity, fairness, QUALIFICATIONS AND SELECTION
accountability, and transparency in carrying out its daily operations. This mindset Members of the MPI Board as well as its Senior Management are individuals who
is balanced with measures undertaken to ensure that the business complies with uphold integrity and are equipped with expertise in running financial institutions.
the regulatory requirements of the Bangko Sentral ng Pilipinas and its CAMELS (capital, asset Members of MPI Board, Senior Management and all other positions requiring
quality, management, earnings, liquidity, and sensitivity to market risk) framework. appointment by the Board are appointed through the recommendation of the Bank’s
The practice of good corporate governance is vital to keep the checks and balances in Corporate Governance Committee (CGC). The CGC reviews and evaluates the qualifications
the Bank’s operations and top officials’ decision-making. It is likewise crucial in enhancing of all persons nominated for MPI Board approval, based on a set of criteria set forth in MPI’s
shareholders’ value, obtaining customers’ trust and loyalty as well as strengthening employees’ Corporate Governance Manual.
commitment to realize the Bank’s aspiration of becoming the country’s leading financial Each year, members of the Board are required, by rotation, to submit themselves for
services provider for its target market segment. re-election to the Board. Nominees to the Board are confirmed by the Bank’s shareholders
during the annual stockholders’ meeting. For financial year 2021, the Annual Stockholders’
BOARD OF DIRECTORS AND SENIOR MANAGEMENT Meeting was held on June 4, 2021.
FUNCTIONS, DUTIES AND RESPONSIBILITIES ROLES AND RESPONSIBILITIES OF THE CHAIRMAN AND THE CHIEF EXECUTIVE
The Board of Directors is MPI’s highest governing body. The Board is at the helm of the OFFICER OF THE BANK
Bank’s strategic direction and operations, thus, have oversight and authority over the Bank’s To ensure equitable distribution of responsibilities and accountabilities as well as to
properties, interests, businesses, and transactions. provide proper check and balance of the power and authority over the Bank’s operations,
The Board’s responsibilities include decision-making on major business strategies; there is a clear separation of roles between MPI’s Chairman of the Board and the President
appointment and confirmation of the Bank’s leaders; approval on big funding and investment and Chief Executive Officer.
proposals, annual budget, and financial plans; and review of the Bank’s performance to ensure The Chairman of the Board is a non-executive member of the Bank. She, along with other
MPI’s long-term success for the benefit of all stakeholders. The Board also ensures that members of the Board, is responsible for supervising the Bank’s operations and ensuring its
effective risk management and operating policies are in place in support of strategic compliance with all the tenets of corporate governance.
directions and programs. The President and Chief Executive Officer, on the other hand, is an executive primarily
The Board is also responsible for governing the business and affairs of the Bank, and for responsible for overseeing the Bank’s day-to-day operations. His performance is evaluated
exercising all such powers pursuant to its Articles of Incorporation and By-Laws. The Board and rewarded by the Board based on his balanced scorecard. He chairs the Management,
is allowed to seek external professional advice on any issue it deems necessary. To be effective, Asset and Liability, Credit and Staff Committees.
the Board subscribes to the to the Code of Corporate Governance issued by the Securities
and Exchange Commission for Public Companies and Registered Issuers, which is based COMPOSITION OF THE BOARD OF DIRECTORS
on the core principles of integrity, fairness, accountability and transparency. In line with MPI’s By-Laws and Amended Articles of Incorporation, the Bank’s Board
MPI’s Senior Management, on the other hand, is the team of individuals at the highest is composed of nine (9) members, four (4) of who are independent and non-executive,
level of management who have the day-to-day tasks of managing the Bank. Also referred to as four (4) are non-independent and non-executive, and one is non-independent and an
the Management Committee or ManCom, they hold executive powers as delegated to them executive of the Bank. Each Director holds one common share.
or by authority of the Board of Directors. The MPI Senior Management team is composed of The Board has a clear division of responsibilities to avoid any individual or group
Heads of the different business, support and governance pillars, and key functional executives. from dominating the Board’s decision-making.
Corporate
Governance
No. of Direct (D)

No. of Meetings Percent to Total
POSITION IN THE BOARD /TYPE OF DIRECTORSHIP No. of Years served and Indirect Shares
Name of Director Attended Outstanding
Principal Stockholder Represented if Nominee as director as of December 31,
(For CY 2021) Shares
2021
Non-Independent / Non-Executive
Madam Chairman Fauziah Hisham 9/9 3 1 (D) 0%
representing Malayan Banking Berhad (Maybank)
Ms. Pollie Sim (Sim Sio Hoong) 9/9 8 1 (D) 0%
Datuk Lim Hong Tat 9/9 7 1 (D) 0%
Non-Independent / Executive
MPI PCEO Abigail Tina M. Del Rosario* 2/2 0 1 (D) 0%
Mr. Manuel N. Tordesillas Non-Independent / Non-Executive 9/9 3 1 (D) 0%
Mr. Renato T. De Guzman Independent / Non-Executive 9/9 5 1 (D) 0%
Atty. Ray C. Espinosa Independent / Non-Executive 9/9 5 1 (D) 0%
Mr. Simoun S. Ung Independent/Non- Executive 9/9 2 1 (D) 0%
Mr. Jesus Roberto S. Reyes Non-Independent / Non-Executive 9/9 1 1 (D) 0%
Mr. Choong Wai Hong** Former PCEO and Director -
*Elected on 08 October 2021

** Resigned effective 11 April 2021. the Corporate Governance Committee to formulate steps to address areas of improvement
for each Director and the Board as a whole.
BOARD PERFORMANCE EVALUATION The evaluation form has two parts. The first part contains statements of the roles,
The Board of Directors, upon the endorsement of the Corporate Governance Committee, duties and responsibilities of a Director as embodied under the Bangko Sentral ng Pilipinas’
adopted an Annual Performance Evaluation, which aims to ensure that the Directors are aware MORB and the Corporate Governance Self-Rating Form. The Director is asked to assess the
of their responsibilities as individual members and as part of the collegial board. It also allows level of his/her fulfillment to each of the statements as either “Exemplary”, “Satisfactory” or
the members of the Board to identify their strengths and weaknesses which, in turn, will enable “Below Expectation”. The second part, on the other hand, consists of varying statements on

the roles, functions and responsibilities of the Board. The Directors are asked to assess the
Board Strategy Committee 2021
performance of the Board on the aspects of Strategies and Plans, Performance Management,
Risk Management, Financial Reporting, Policies, Human Capital Management, Effectiveness, No. of Meetings
Position in the Committee Name
Remuneration, Shareholders’ Value, as well as its general assessment on the performance of Attended
the Board and Management Committees and the manner by which meetings are conducted. Madam Chairman Puan Fauziah Binti Hisham 5/5
Assessment is either “Satisfactory”, “Could Improve” or “Must Improve in Coming Year”. Member Datuk Lim Hong Tat 5/5
Member Mr. Renato T. De Guzman 5/5

BOARD COMMITTEES
MPI has six (6) Board-level Committees, which were formed to assist the Board in Member Mr. Jesus Roberto S. Reyes 5/5
implementing its duties and responsibilities within the bounds of good corporate governance. Member Mr. Simoun S. Ung 5/5
CORPORATE GOVERNANCE COMMITTEE

Board of Directors The Corporate Governance Committee reviews and evaluates the qualifications of all
persons nominated to the board as well as those nominated to other positions requiring
appointment by the Board of Directors; assesses the Board and director’s performance,
oversees the continuing education of the Board and ensures that the Bank’s remuneration
Corporate Audit is sufficient and reasonable and linked to corporate and individual performance.
Board Strategy
Governance Committee
Committee
Committee of the Board
(STRATCOM) Corporate Governance Committee 2021
(CORGOV) (ACB)
Position in the Committee Name No. of Meetings
Attended
Risk Related Party Trust Chairman Mr. Simoun S. Ung 7/7
Management Transactions Committee
Committee (RPT) Member Ms. Pollie Sim (Sim Sio Hoong) 7/7
(TRUSTCOM)
(RMC) Committee Member Mr. Renato T. De Guzman 7/7
AUDIT COMMITTEE OF THE BOARD

BOARD STRATEGY COMMITTEE The Audit Committee assists the Board in fulfilling its oversight responsibilities for the
The creation of the Strategy Committee was approved by the Board by circular resolution financial reporting process, the system of internal control, the audit process, and the Bank’s
on October 14, 2016 and confirmed by the Board of Directors in its meeting on December 2, process for monitoring compliance with laws and regulations and the code of conduct. The
2016. The Strategy Committee is tasked to recommend various strategic objectives of the Committee is authorized by the Board to investigate any activity or matter within its sphere
Bank to the Board for its approval, as well as any revisions or changes thereto. of influence; obtain external independent professional advice, legal or otherwise as deemed
necessary; and maintain direct communication channels with external and internal auditors and
with the Senior Management of the Bank and its affiliates. To execute these functions effectively,
the Audit Committee has also been empowered to have the resources, which are required to
perform its duties and unlimited access to all information and documents relevant to its activities.
Corporate
Governance
Audit Committee of the Board 2021 It ensures disclosure is made and/or information is provided to regulating and supervising
authorities related to MPI’s RPT exposures, including policies on conflicts of interest or
No. of Meetings
Position in the Committee Name potential conflicts of interest; report to the Board on a regular basis the status and aggregate
Attended
exposure to each related party; and ensure that transactions with related parties are subject
Chairman Renato T. De Guzman 7/7 to periodic review/audit.
Member Datuk Lim Hong Tat 7/7
Member Simoun S. Ung 7/7 Related Party Transactions Committee 2021

Position in the Committee Name No. of Meetings
RISK MANAGEMENT COMMITTEE Attended
The Risk Management Committee provides oversight of the Board’s activities in managing Chairman Mr. Jesus Roberto S. Reyes 6/6
the Bank’s credit, market, liquidity, operational, legal and other risk exposures. It advises the Member Mr. Simoun S. Ung 6/6
Board on the Bank’s overall current and future risk appetite, oversee senior management’s
Member Mr. Renato De Guzman 6/6
adherence to the risk appetite statemen and report on the state of risk culture of the Bank.
The Committee also oversees the implementation of the Bank’s Compliance Framework and
Program, including its Money Laundering/Terrorism Financing Prevention Program and ensures TRUST COMMITTEE
that the Bank complies with all applicable laws, regulations, codes of conduct and standards The Trust Committee provides oversight of the Bank’s activities in managing its trust
of good practice. It shall also ascertain that compliance issues are resolved expeditiously. business. Its responsibilities include, but are not limited to, the acceptance and closing of trust
and other fiduciary accounts; the initial review of assets placed under the trustee’s fiduciary’s
Risk Management Committee 2021 custody; the investment, reinvestment, and disposition of funds or property; the review of trust
and other fiduciary accounts at least once a year to determine the advisability of retaining and
No. of Meetings
Position in the Committee Name disposing of the trust of fiduciary assets, and/or whether the account is being managed
Attended
in accordance with the instrument creating the trust or other fiduciary relationship.
Chairman Atty. Ray C. Espinosa 6/6
Member Mr. Jesus Roberto S. Reyes 6/6

Trust Committee 2021
Member Mr. Manuel N. Tordesillas* 6/6
No. of Meetings
Position in the Committee Name
Attended
* Member since March 2021
Madam Chairman Ms, Pollie Sim (Sim Sio Hoong) 6/6
RELATED PARTY TRANSACTIONS COMMITTEE Member Atty. Ray C. Espinosa 6/6
The Related Party Transactions (RPT) Committee was created by the Board on March 29, Member Mr. Antonio C. Danao 6/6
2016 pursuant to BSP Circular No, 895 issued on December 14, 2015. The Committee is tasked Member Mr. Jesus Antonio S Reyes 6/6
Ms. Abigail Tina M. Del Rosario
in assisting the Board to approve an overarching policy on the handling of RPTs to ensure that Member 1/1
(MPI PCEO)*
there is effective compliance with existing laws, rules and regulations at all times, that these Mr. Likia Suteno** 4/4
are conducted on an arm’s length basis, and that no stakeholder is unduly disadvantaged.
*appointed as Member on 02 December 2021
**appointed as Interim Member from 29 March 2021 to 07 October 2021
MANAGEMENT-LEVEL COMMITTEES STAFF COMMITTEE

MPI has six (6) Management-level committees tasked to support the Bank’s Management. The Staff Committee formulates, plans, and recommends to the Corporate Governance
The committees are: the Management Committee, the Asset and Liability Committee, the Committee or the Board of Directors policies on all matters relating to the Bank’s employees.
Credit Committee, the Staff Committee, the IT Steering Committee, and the Audit Exception
Review Committee. IT STEERING COMMITTEE
The IT Steering Committee plans and directs the information technology-related
Board of Directors initiatives of the Bank in line with the Board-approved corporate strategy and plans.
AUDIT EXCEPTION REVIEW COMMITTEE

MPI President & CEO
The Audit Exception Review Committee deliberates on the findings of MPI’s Internal Audit
Group and monitors the status of actions taken as recommended by both the Bank’s Internal
and External Auditors.
TRAINING AND DEVELOPMENT

Management Credit IT Steering
Committee Committee Committee
The members of the MPI Board undergo an annual training on relevant topics related
to corporate governance, banking trends and regulatory developments
Annually, each Senior Management attends executive development and alignment
Asset and programs for continuous learning and leadership capabilities enhancement, as available
Audit Exception
Liability Staff and offered within the Maybank Group.
Review
Management Committee
Committee In 2021, Maybank Philippines, Inc. continued its campaign to become FutureReady
Committee
through providing employees training programs for upskilling and re-purposing aimed at
ensuring business continuity and the growth and mobility of talents and to be able to provide
MANAGEMENT COMMITTEE continuous excellent customer experience. The introduction of the Digital Skills Development
The Management Committee directs and reviews the Bank’s overall operations to achieve Program further supplemented the organization’s FutureReady program wherein online and
its Board-approved objectives and targets. It also reviews and recommends the Budget Plan classroom learning sessions have heavily magnified the significance of Digital Awareness.
of MPI and evaluates the Bank’s performance against budget. Maybank’s aspiration to lay down a strong foundation towards achieving complete digital
transformation in view of the constant evolution in the digital landscape became an intrinsic
ASSET AND LIABILITY MANAGEMENT COMMITTEE motivation to promote the integration of digital literacy programs in enterprise worldwide to
The Asset and Liability Management Committee monitors and reviews the Bank’s overall orient employees with future digital roadmap to achieve success and to stay relevant.
asset and liability management structure to address market risk, liquidity risk, interest rate risk, Regulatory trainings, spearheaded by the Risk, Compliance and Audit units in partnership
and capital management. with Human Capital, are continuously designed to ensure the organization’s overall business
compliance to protocols provided by internal and external regulators.
CREDIT COMMITTEE Project ROAR, which was launched in 2020, has remained a strong product knowledge
The Credit Committee approves the credit facilities and credit-related matters and training program for sales and operations employees which aimed to increase productivity and sales
transactions based on a two-level risk-based authority limit, subject to the Board’s notation. by equipping the employees with knowledge on how to cross-sell the retail products of the Bank.
Corporate
Governance
RETIREMENT AND SUCCESSION POLICY Total remuneration paid to the Board of Directors for financial year 2021 amounted
to Php 23,154,964.00, as compared to Php 15,603,576.00 recorded in the previous year.
The Board recognizes that age is not the main factor in determining the effectiveness For MPI officers, the Bank has adopted a remuneration system that is at par with the
of a Director in discharging his duties and responsibilities, but rather based on his wisdom and local banking industry. In particular, and as part of its transformation journey, MPI has adopted
qualifications. A Director remains as such and maybe nominated/re-elected to the MPI Board a rewards strategy that is anchored on the philosophy of “Pay for Performance”. It is a holistic
for as long as he is deemed fit and proper in accordance with the relevant qualifications to hold approach which ensures that compensation is linked to the business strategy. This, in turn,
the position as a member of the Board, and possesses all the qualifications and none of the makes certain that the organization attracts the best talents, and retains and motivates its
disqualifications under the MPI By-Laws and applicable laws and regulations. employees, while enhancing their skills to achieve high performance and career growth.
MPI considers the age of sixty (60) as the retirement age for officers and staff. Employees, Moreover, it significantly drives the Bank’s profitability, as well as its ability to give value to
including Senior Management, reaching this age shall be entitled to receive retirement benefits its shareholders.
earned under existing laws and any collective bargaining agreement and other agreements. This holistic approach to the MPI rewards structure offers both monetary and non-
However, Management may initiate to extend employment beyond the compulsory retirement monetary incentives. Basic pay is benchmarked against the market rate and employee benefits
age of up to the labor law mandated age of sixty-five (65) years old. This will be highly are reviewed in terms of its competitiveness in the industry. This approach of “Total Rewards”
dependent on the exigency of the manpower requirements of the Bank, and those who will has evolved to focus on the right compensation and benefits package, partnered with a robust
be extended shall be bound by a new contract. career development and progression opportunities to help employees achieve their personal
MPI likewise implements a robust Talent Management Program aimed at enhancing the and professional aspirations, and at the same time, ensuring that the Bank is positioned to
Bank’s Human Capital bench-strength and build people capabilities that support the Group’s deliver high performance.
current and future business and talent needs, thereby creating a high Talent Pool readiness The most highly compensated management officers are the President and CEO,
required for Succession Planning. one Executive Vice Presidents and three Senior Vice Presidents.
Senior Management positions fall under Mission Critical Positions (MCP) and identified The total amount spent last 2021 for Maybank employees’ compensation and benefits
successors are prepared for accelerated leadership readiness through targeted interventions, is Php 1,929,683,698, slightly higher than the 2020 manpower cost of Php 1,596,946,206.00.
as part of the Bank’s disciplined implementation of succession plans. This amount includes the salaries, bonuses, allowances, retirement provisions, and all other
benefits of the officers and staff of Maybank Philippines, Inc.
REMUNERATION OF THE BOARD OF DIRECTORS AND OFFICERS
ACCOUNTABILITY AND AUDIT
In accordance to MPI’s By-Laws and by resolution of the Board, each Director shall receive
a reasonable per diem allowance for his actual attendance at each meeting of the Board FINANCIAL REPORTING AND DISCLOSURE
of Directors. Should he serve as a member of a committee or committees of the Bank, the The Board is primarily accountable to MPI’s shareholders. The Bank’s highest governing body
Director shall be entitled to the compensation given a member hereof, subject to limitations aims to provide its shareholders with a balanced and clear assessment of MPI’s performance
set forth by law. In no case shall the total yearly compensation of directors, as such directors, and prospects when it presents the Bank’s audited annual and quarterly financial statements.
exceed 10% of the net income before income tax of the Bank during the preceding year. Aside from discussing its financial performance in the annual report, MPI also publishes
In addition to their regular per-diems, the transportation and hotel accommodations of its quarterly financial performance in newspapers of general circulation.
non-Filipino Directors are paid or reimbursed by the Bank. For the financial year ended 31 December 2021, the Bank’s financial statements were
prepared in full compliance with the Philippine Financial Reporting Standards.

INTERNAL CONTROLS of structured compliance training programs; and periodic independent reports on MPI’s
The Board has an overall responsibility of ensuring that proper and adequate internal state of compliance.
controls are in place to safeguard the Bank’s assets and protect the interests of its Compliance Management maintains independence from the business activities of the
stakeholders. The Board sees to it that internal audit examinations include the evaluation Bank. The Chief Compliance Officer reports to the Board of Directors through the Risk
of the adequacy and effectiveness of internal controls covering financial, operational, Management Committee. It continues to implement measures and controls to ensure that
compliance, and risk management matters. the duties performed, and the decisions taken, are carried out independently from Senior
Management and all units of MPI.
ROLE OF INTERNAL AUDIT Over the years, MPI Compliance Management has grown in resources and expanded
Internal Audit is an independent, objective assurance and consulting activity designed in functions to adapt to the dynamic regulatory environment and advancement of MPI’s
to add value and improve the Bank’s operations by providing independent, objective assurance business itself. It has transformed from being a mere adviser to one that is a partner of
and consulting activities which are designed to evaluate and enhance the risk management, business, putting focus on active risk management, with significant increase in monitoring
control and governance processes in order to assist management to achieve its corporate and surveillance activities, whether manual or automated. The department’s compliance
goals. It helps the Bank accomplish its objectives by bringing a systematic, disciplined professionals have become active co-owners of risks, providing independent oversight
approach to evaluate and improve the effectiveness of risk management, control and of the overall compliance system.
governance processes. In 2021, amidst the COVID-19 pandemic, Compliance Management started the
implementation of its 3-year transformation program anchored on strengthening
RELATIONSHIP WITH AUDITORS infrastructure, processes and capabilities to further mature compliance activities and
The Board maintains a transparent and professional relationship with MPI’s external and promote a strong compliance culture. Various system enhancements were either implemented
internal auditors. Through the Audit Committee of the Board, it recommends to shareholders or in the pipeline in an effort to raise compliance infrastructure capabilities to global standards.
a duly accredited external auditor to undertake an independent audit, which is up for rotation Policies and procedures were enhanced and updated to align compliance controls and activities
every five (5) years as stipulated in the Bank’s manual. with the Bank’s strategic priorities and risk appetite. Thematic compliance reviews were
conducted to provide independent and objective assessment of compliance-related processes
COMPLIANCE MANAGEMENT and/or controls. Compliance Management also employed all possible effective channels to
increase awareness on compliance requirements and responsibilities, such as online learning
Compliance Management is a vital component of MPI’s second line of defense for courses, tailored/customized training modules, regular email advisories, among others.
managing risks. Its role is to ensure that MPI conducts business with integrity; adheres to These transformation initiatives undoubtedly provided a more streamlined and efficient
applicable laws, rules and regulations, codes of conduct and standards of good practice; compliance risk management model that enabled MPI to keep pace and proactively navigate
and inculcates a strong sense of regulatory and ethical responsibility across the organization. the ever-changing regulatory landscape.
The Compliance Management also identifies, records and assesses compliance risks associated For the year 2022, Compliance Management will focus on three pillars: 1) pursue the
with the Bank’s operations, including new products and services, customer relations, compliance transformation program which includes implementation of priority system
and material changes in business strategies. enhancements for increased efficiency and effectiveness in compliance risk management;
Compliance Management facilitates the effective regulatory risk management through 2) fortify compliance engagement with more tailored and role-specific capability building
advisory on regulatory requirements and expectations; establishment of adequate compliance programs, advisories and easy access regulations library; and 3) translate the heightened
program, policies, guidelines and procedures; conduct of compliance validation; development compliance awareness and understanding into consistent practice of MPI TIGER values
and ethical employee behavior.
Corporate
Governance
As MPI adapts to the new normal, and despite the surge in challenges following We adhere to the highest service standards and embrace a culture of fair and responsible
the COVID-19 pandemic, Compliance Management will continue to institutionalize compliance dealings in the conduct of our business through the adoption of BSP’s Financial Consumer
in all stages of business. It will uphold its commitment to pursue enhancements in the Protection Program.
compliance risk management approach for better anticipation and mitigation of compliance The MPI Consumer Protection Framework provides the fundamental guidelines on
risks, and will continue to find the right balance in providing independent oversight while being consumer protection and oversight for the Maybank Group and MPI. This document serves as
sufficiently engaged in MPI’s business growth. a key tool for all employees, alongside the Board and Senior Management in understanding,
complying and managing day to day consumer protection activities of MPI.
CODE OF ETHICS AND DISCIPLINE
ROLES AND RESPONSIBILITIES OF THE BOARD AND SENIOR MANAGEMENT
MPI has a Code of Ethics and Discipline to guide all employees in discharging their duties The Board and Senior Management are jointly responsible for developing the consumer
and in dealing with customers, colleagues and public authorities. It also sets out the standards protection strategy and establishing an effective oversight over MPI’s consumer protection
of good banking practices that all employees must observe. Specifically, the Code seeks to: programs. The Board shall be primarily responsible for approving and overseeing the
implementation of MPI’s consumer protection policies as well as the mechanism to ensure
• Uphold the good name of MPI and to maintain public confidence with the Bank; compliance with the said policies.
• Maintain an impartial relationship between Maybank and its customers;
• Uphold the high standards of personal integrity and professionalism of Board of Directors Senior Management
MPI employees;
• Maintain independence of judgment and action by consciously disclosing Approval and Implementation Oversight Implementation of the Framework
and avoiding any possible conflict of interest; Monitor Framework Implementation Manage day-to-day consumer protection
• Encourage the employees to share in the creation of a more just and Management activities
Development and implementation of the
and humane society. Oversee Compliance with the Framework
Customer Service Training Program
The Code, which was updated in June 2019, was cascaded and communicated to all MPI Review periodically the effectiveness of the Consumer Protection Risk Management System
employees. MPI employees also confirm with Human Capital reading the Code each year. Ensure sufficient resources are devoted to the implementation of the Consumer
In strict compliance with the health and safety protocols set by the government last year Protection Risk Management
at the onset of the pandemic, MPI has established an Annex to the Code for pandemic-related Address weaknesses and make corrective actions in a timely manner
offenses to continue to protect the safety and well-being of its employees and customers.
The Annex was cascaded and communicated to all MPI employees in August 2020. Senior Management is expected to:
• Create an open and empowering culture to encourage responsible and
CONSUMER PROTECTION ethical behavior.
• Promote staff awareness of importance of consumer protection, including
Aligned with the Group’s vision on Humanising Financial Services, MPI is geared towards providing adequate training, in their respective business functions, especially
raising the bar in creating a customer-centric organisation. Imperative in achieving this goal those who have regular interaction with customers.
is ensuring that consumer protection practices are embedded in our business operations.

• Set-up effective systems and controls to manage and monitor compliance with all Our Service Quality Management (SQM) Unit is responsible in the end-to-end
applicable laws, regulatory standards, best practices and internal guidelines. complaints management system. The unit monitors all complaints received are addressed
• Be alert to early warning indicators of potential problem or threats to the and resolutions are properly communicated to the client. Apart from complaints management,
Bank’s reputation. SQM also ensures that the BSP’s Financial Consumer Protection guidelines are adhered to by
all business units. All new launches or changes in a product/service, its terms and conditions,
Management Committee (ManCom) is expected to: rates and fees, advertising and communications to customers go through careful review and
• Create an open and empowering culture to encourage responsible and approvals should include the heads of SQM and Customer Care. This process confirms
ethical behaviour. that the information given to customers are clear, concise and are easily understandable.
• Promote staff awareness of importance of consumer protection, including providing Similarly, it allows a smooth journey for all customer concerns.
adequate training, in their respective business functions, especially those who have Employee trainings are conducted to ensure that they are well-informed on the Financial
regular interaction with customers. Customer Protection guidelines. Other courses include systems trainings on the complaints
• Set-up effective systems and controls to manage and monitor compliance with all logging system to increase the efficiency in complaints handling.
applicable laws, regulatory standards, best practices and internal guidelines. Compliance and Internal Audit review the Bank’s consumer protection practices,
• Be alert to early warning indicators of potential problem or threats to the adherence to internal policies and procedures, and compliance with existing laws,
Bank’s reputation. rules and regulations. Changes/updates in processes are well-documented and approved
by relevant parties. This confirms each department/unit is aware of its responsibilities
CONSUMER PROTECTION RISK MANAGEMENT SYSTEM and accountability is clear.
To ensure adherence to consumer protection laws, rules and regulations, MPI has in
place a Consumer Protection Risk Management System (CRMS) which identifies, measures, COMPLAINT MANAGEMENT STANDARD OPERATING PROCEDURE
monitors, and controls consumer protection risks inherent in its operations. Having a well-designed and well-managed mechanism for handling customer complaints
can improve the quality of our work, enhance the trust and confidence of our stakeholders,
Effective Recourse identify our areas of improvement, and ensure that Maybank learns from the feedback
provided through this process.
MPI provides an accessible, affordable, independent, fair, accountable, timely, The complaints and response mechanism is linked to the principles of our Customer
and efficient means to our customers for resolving concerns with their financial transactions. Experience Transformation and will ensure feedback, transparency, and learning which will
We have established a wide range of channels where customers can conveniently lodge their strengthen our accountability as an organization. In line with Maybank’s thrust of building
complaints, inquiries and requests; and put in place a dedicated helpdesk or hotline for the said a truly Customer Centric Framework across the Group, Service Quality Management (SQM)
purpose. Our employees have been adequately trained to acquire the skills and knowledge in will have oversight on the complaints centralized team referred to as Consumer Assistance
handling various customer concerns. As a result of this, we have seen: Management System (CAMS) Team. The members of the CAMS team ensure complaints are
• 23% reduction in our complaints received for the year 2021 vs 2020 resolved within timeline.
• Our customer survey results returned a Net Promoter Score of +40 MPI’s SQM Head reports directly to the MPI PCEO and regularly presents to ManCom
• Our Service Level Performance on Complaints resolution increased by 29% and Board of Directors the monthly complaints data report and the preventive measures
being done to address possible reoccurrence.
MPI’s complaints handling process flow is as follows: • Issue Owner is required to acknowledge complaints received, ensures resolution
and communicates the resolution to the customer for proper closure.
Complaints Handling Process Flow • CAMS members are to ensure all complaints are attended to professionally and
satisfactorily within the agreed turnaround time.
• Service Quality Head reviews and monitors all complaints lodged in the system and
Customer
Receives the
Would like resolution and ensures that all complaints are. Discussions on preventive measures happen with the
Start to lodge a decision. Satisfied End
complaint issue owners and the department heads to improve quality of work and efficiency.
with the outcome
DIVIDEND POLICY
Touch Point
Ask for details First Y Dividends may be declared from the surplus profits arising from the business of the Bank at
Contact Relays the
and files the such time and in such percentage, as the Board may deem proper. No dividends may be declared
Resolution resolution
complaint in
(FCR) to the client that will impair the Bank’s capital. Dividends shall be declared in accordance with the law.
Sapphire system
N
SHAREHOLDER INFORMATION
Issue Owner
Conducts Relays the

Acknowledges
thorough resolution Name of
the complaint Percentage
investigation to the client Stockholder/ Type of Shares Number of Shares
of Ownership
Nationality
Common 305,798,756 99.86%
Malayan Banking Preferred 60,814,533
CAMS Team
Head reports to Berhad/ Malaysian

Ensures that
Extracts the MANCOM on a
a complaint is TOTAL 366,613,289
complaints monthly basis
resolved within
received all complaints
turnaround time Common 42,779 0.14%
received
Minority / Various Preferred 3,596,541
TOTAL 3,639,319
• All complaints are documented by the touch point (TP) personnel in a central
100%
complaints database. Touch Point (TP) refers to available channels where customers
may lodge their complaint (ie. branches, call center, website, Service Quality
Management, etc). TP personnel is required to acknowledge and attempt to resolve
the complaint. Complaints that cannot be resolved at first point of contact are
escalated to the issue owner also part of the CAMS Team.

Risk
Management
“
We are resilient in the face of challenges
to the business and changes in the operating
landscape, constantly rethinking and
recalibrating to manage risk and adapt
to the evolving times.
Risk
Management
INTRODUCTION COVID-19 PANDEMIC RISK RESPONSE
R
isk Management continues to evolve in response to the changing business landscape MPI has in place a comprehensive Business Continuity Management (BCM) which
and regulatory environment of the world today. We thus positioned ourselves to remain includes pandemic response procedures.
resilient in the face of these changes, identifying key drivers and initiatives to improve For operations, MPI has invested heavily on office reconfiguration, procurement of needed
our value creation to support MPI’s strategic objectives. devices and PPE requirements to ensure the safety and welfare of its employees, as well as
keeping the core business to serve the needs of its clients. The number of employees reporting
Strategic Objectives Key Outcomes to office is controlled to align with Covid-19 Risk Classification declared by the Government.
Branch Network • Refocusing of the branch’s strategic intent and target customer type
Priority is given to Critical Business Functions (CBFs). Split Operations is implemented to
Optimization • Relocation of branches to areas with higher potential ensure one team can assume the function when one is down due to infection.
IT infrastructure, with corresponding security requirements, was enhanced to enable some
• Re-allocation of headcount arising from reduced redundancies and employees to work from home as needed. Head Office layout was modified and fortified to ensure
Workforce increased automation to sustain growth
the social distancing parameters are properly observed. Regular sanitation is being done for office/
Management • Reach a specific ratio of front, middle, and back office personnel
allocation to improve the Bank’s Cost-to-Income Ratio (CIR) branch premises. Staff health status were monitored daily and Human Capital has provided the
necessary support for those infected until they have recovered. Regular reminders are being issued
Digital Roadmap and • Reduce reliance on traditional branch banking by means of digital through various channels to observe protocols and other guidelines to be followed.
Straight-Through- products, thereby increasing local competitiveness while avoiding
For Branches, closures and shortened banking hours are implemented to match with the
Process brick and mortar costs
declared movement restrictions of authorities. For closed branches, buddy branch is assigned
• Adopt cyber resilience framework by implementing robust Cyber to ensure continuous servicing to client. Internet Banking and ATMs were monitored closely to
Information Security/ Defense capability and Information Security Blueprint Roadmap.
Cyber Resiliency • Reduce cyber threat with real time detection, response and
ensure availability to clients. Processes were also streamlined with matching controls to enable
monitoring thru RSOC (Regional Security Operation Center). clients to issue instructions and do transactions remotely.
MPI has enhanced its back-to-work plan suited for the current Covid-19 situation.
The Bank’s approach to risk management is enterprise-wide and involves the establishment The plan is continuously being reviewed to optimize operations and implement necessary
of risk policies, procedures, and tools, including independent assessment and monitoring of Covid-19 control measures for staff and clients.”
inherent risks, as well as creation and maintenance of a strong risk culture that acts as the MPI’s Crisis Management Team convenes regularly to monitor status of staff and
foundation and driver of our governance and risk management practices. MPI’s risk management operations and provide the necessary support/directives.
is underpinned by a comprehensive, Integrated Risk Management based on best practices.
The mission of MPI’s Risk Management function is to develop measures to ensure that BOARD RESPONSIBILITY
risks inherent to the Bank’s activities are properly identified, measured, controlled, monitored,
and reported under both business-as-usual conditions and stress events. The Board acknowledges its overall responsibility in establishing a sound risk management
and internal control system as well as in reviewing its adequacy and effectiveness. In view
of the inherent limitations in any internal control system, the risk management and internal
control system can only provide reasonable assurance that the significant risks impacting
MPI’s strategies and objectives are managed within the risk appetite set by the Board and

Management, rather than absolute assurance regarding achievement of the Bank’s objectives. INTEGRATED RISK MANAGEMENT FRAMEWORK
It does not in any way eliminate the risks of failure to realize the Bank’s objectives against any
material misstatement, fraud or loss. The inherent limitations include, amongst others, human RISK UNIVERSE
error, the uncertainty inherent in judgment and the potential impact of external events outside
management’s control as well as human collusion to circumvent internal controls. The Bank has in place, a Risk Universe that lists all potential risks that could affect MPI.
Recognizing the importance of a sound risk management and internal control system, the On an annual basis, and whenever necessary, the Bank through its Material Risk Assessment
Board has established a governance structure to ensure effective supervision of risks and controls Process (MRAP) identifies the material risks that could potentially hinder MPI from achieving
in the Bank. The Board is satisfied that the Bank has implemented an ongoing process to identify, its set objectives.
evaluate, monitor, manage and respond to significant risks faced by the Bank in its achievement Listed below are the material risks identified from the MPI Risk Universe using the
of the business goals and objectives amidst the dynamic and challenging business environment Material Risk Assessment Process (MRAP):
and regulatory requirements. The outcome of this process is closely monitored and reported to
the Board for deliberation. This ongoing process has been in place for the entire financial year Principal Risk What It Means to Us
under review and up to the date of approval of this Statement for inclusion in the Annual Report.
The Bank’s risk of loss of principal or income arising from the failure of an obligor or
The Board receives reports on a periodic basis relating to regulatory developments and Credit Risk
counterparty to perform their contractual obligations In accordance with agreed terms.
compliance deficiencies identified with the Bank. The Board focuses on the deficiencies reported,
understands the root causes and directs Management to take all steps necessary to correct the Risk of loss or adverse impact on the Bank’s earnings or capital from changes in
circumstances and conditions that had caused the compliance deficiencies. This includes specific Market Risk the level of volatility of market rates or prices such as interest/profit rates, foreign
exchange rates, commodity prices, and equity prices.
remediation plans and follow-up actions to ensure the deficiencies are addressed.
Risk of adverse impact to the financial condition or overall safety and soundness of
MANAGEMENT RESPONSIBILITY Liquidity Risk the Bank that could arise from the inability (or perceived inability) or unexpected
higher cost to meet its obligations.
The Management is overall responsible for implementing the Board’s policies and Interest Rate
Risk of loss in earnings or economic value on banking book exposures arising from
procedures on risk and controls. Its roles include: Risk in the
movements in the interest rates.
Banking Book
• Identifying and evaluating the risks relevant to the Bank’s business, and the
achievement of business objectives and strategies Risk of loss arising from operational events and/or external factors that could
• Formulating relevant policies and procedures to manage these risks in accordance Operational /
result in monetary losses or negative impact in brand value and/or stakeholder
perceptions towards the Bank. It comprises operational, information, and
with the Bank’s strategic vision and overall risk appetite Non-Financial
reputational risks, as well as other downside risks (i.e. “known” unknowns).
• Designing, implementing and monitoring the effective implementation of risk Risk
Holistically, it is from the point of discovery through active risk and business
management and internal control system continuity management.
• Implementing the policies approved by the Board;
Risk which impacts confidentiality, availability, and integrity of information and
• Implementing the remedial actions to address the compliance deficiencies as services related to information technology. This includes risks that customers or
directed by the Board and regulators; the business may suffer on service disruptions or may incur losses arising from
• Reporting in a timely manner to the Board any changes to the risks and the Information
Technology
system defects, illegal or unauthorized use of computer systems or data breach via
corrective actions taken. computer systems perpetrated either by internal staff/vendors or external parties.
Risk
This also includes Cyber Risk that can lead to losses due to cyber-crime and cyber
terrorism. The consequences are potential breach of customer data/information and
reputational impact to the Bank.
Risk
Management
Key Risk Principles

Principal Risk What It Means to Us
Risk that may erode the franchise value of the Bank such as legal or regulatory i. Establishing a risk appetite and strategy which is approved by the Board that articulates
sanctions, material financial loss, or loss to reputation which the Bank may suffer as the nature, type and level of risk the Bank is willing to assume.
Compliance a result of its failure to comply with laws, rules, related self-regulatory organization ii. Driving capital management by strategic objectives that takes into account the relevant
Risk standards, and codes of conduct applicable to its activities. Said risk may also arise
regulatory, economic and commercial environments in which the Bank operates
from failure to manage conflict of interest, treat customers fairly, or effectively
manage risks arising from money laundering and terrorist financing activities. iii. Ensuring proper governance and oversight through a clear, effective and robust Bank
governance structure with well-defined, transparent and consistent lines of responsibility
Risk of loss to the Bank arising from business/strategic, industry, reputational, established within the Bank
Enterprise Risk
corporate governance, sustainability and data quality risk. iv. Promoting a strong risk culture that supports and provides appropriate standards and
incentives for professional and responsible behavior.
Risk of a model not performing the tasks or capture the risks it was
Model Risk v. Implementing risk frameworks, policies and procedures to ensure that risk management
designed to address.
practices and processes are effective at all levels.
Financial Risk Risk of loss to the Bank arising from capital and profitability risk. vi. Executing robust risk management practices and processes to actively identify, measure,
control, monitor and report risks inherent in all products and activities undertaken
RISK PRINCIPLES by the Bank
vii. Ensuring sufficient resources, infrastructure and techniques are in place to enable
MPI’s risk management approach is underpinned by a sound and robust Integrated Risk effective risk management.
Management Framework, which is constantly enhanced to remain relevant and resilient
amidst the ever-changing global risk landscape, regulatory requirements and leading practices RISK APPETITE
in ensuring effective management of risk. The overall structure of the Integrated Risk
Management Framework is shown below. The Bank’s risk appetite is a critical component of our robust risk management framework
and is driven by both top-down Board leadership and bottom-up involvement of Management
at all levels. Our risk appetite enables the Board and Senior Management to communicate,
Risk understand and assess the types and levels of risk that we are willing to accept in pursuit of our
Risk Appetite Management business objectives.
& Strategy Practices & The risk appetite is integrated into the strategic planning process, and remains dynamic
Processes
and responsive to changing business and market conditions. In addition, the budgeting process
is aligned to the risk appetite in ensuring that projected revenues arising from business
Principles Risk Culture
transactions are consistent with the risk profile established. Our risk appetite also provides a
consistent structure in understanding risk and is embedded in day-to-day business activities
Resources
Governance & and decisions throughout the Bank.
& System
Oversight Infrastructure

Guided by these set of principles, the articulation of our risk appetite is done through RISK GOVERNANCE
Risk Appetite Statements, encompassing all material risks across the Bank. This forms the link
in which the risk limits and controls are set in managing risk exposures arising from business The governance adopted in the Bank provides a formalized, transparent and effective
activities. Acting as both governor of risk and a driver of current and future business activities, structure that promotes active involvement from the Bank and Senior Management in the risk
the risk appetite ultimately balances the needs of all stakeholders and acts as powerful management process to ensure a uniform view of risk across the Bank.
reinforcement to a strong risk culture. Our governance model places accountability, ownership and agility in ensuring an
appropriate level of independence and segregation of duties. The management of risk
Principles of Risk Appetite broadly takes place at different hierarchical levels and is emphasized through various levels of
committees, business lines, control and reporting functions. The structure is premised on the
The goal of risk management is not to eliminate risk, but to manage it effectively to three lines of defense which include risk taking units, risk control units and internal audit.
provide our stakeholders with long-term returns that are commensurate with the risk the
bank takes. Hence, the Bank’s Risk Appetite Statement (RAS) is in essence the Board and • First line: “Risk Taking Units”
Senior Management’s statement of intent, and ‘posture’ on its risk-taking activities as well • Consists of both business and support units who are ultimately responsible
as the management of it. to manage day-to-day risks inherent in our business and activities.
• Ensures effective risk oversight, alignment to the implementation of risk
frameworks, policies and procedures and clarity in risk management functions
and practices.
• Second line: “Risk Control Units”
• Includes risk management and compliance functions to provide effective
Strategic Planning Risk Appetite oversight and guidance over the effective operation of the risk management
Where should What and framework.
we place our how much risk • These units have similar responsibilities to the 1st line of defense for the
strategic bets? should we take? processes and activities they own. In addition, they are responsible in ensuring
implementation and execution of risk management frameworks, policies and tools.
• Third line: “Internal Audit”
• Internal audit forms the 3rd line of defense and provides independent assessments
and validation that risk management frameworks and practices are sufficiently
Capital robust in support of the Bank and consistent with regulatory standards.
How much capital
do we need?
Risk
Management
Maybank Philippine Risk Governance Model
BOARD OF DIRECTORS
MPI’s ultimate governing body with overall risk oversight responsibility including defining the appropriate governance structure and delegation of authority
BOARD RISK Risk Management Committee (RMC)

COMMITTEES Responsible for the risk oversight function including but not limited to approving the Bank’s risk management strategies, frameworks, plans, policies, tolerances and risk appetite limits.
Management Committee (ManCom) Credit Committee (CC) Asset & Liability Management IT Steering Committee Audit Exception Review
Responsible for directing the Responsible for the approval Committee (ALCO) (SteCom) Committee (AERC)
overall operations to achieve of the loans/proposals as per Responsible for the Responsible for planning and Responsible to undertake
MANAGEMENT MPI’s business objectives. the thresholds set based on the management of market and directing computerization of periodic testing of the
COMMITTEES ManCom also addresses other authority limits. liquidity risk through the MPI that is commensurate effectiveness and efficiency
material risks of the bank formulation of broad strategies with corporate objectives. of the risk management
except credit, market and for the balance sheet profile frameworks and internal
liquidity risks. and funding structure of MPI. controls in place.
1st Line of Defense 2nd Line of Defense 3rd Line of Defense
Risk-Taking Units Risk-Controls Units Independent Validation

Business and Other Support Units Risk Management & Compliance Internal Audit
Day-to-Day Management of Risks Risk Oversight of Frameworks, Policies & Procedures Independent Assurance
BOARD OF DIRECTORS frameworks, and policies for the material risks faced by the Bank.
The Board of Directors is the Bank’s ultimate governing body, which has overall risk Other roles and responsibilities of the Risk Management Committee are:
oversight responsibility including defining the appropriate governance structure and • To review and approve risk management strategies, risk frameworks, risk policies
delegation of authority. It approves the risk management framework, risk appetite, plans and and risk tolerance, and risk appetite limits of the Bank;
performance targets, the appointment of senior officers, delegation of authorities for credit • To review and assess adequacy of risk management policies and framework in
and other risks, and the establishment of effective control. identifying, measuring, monitoring, and controlling risk and the extent to which
The Board has delegated the Risk Management Committee to formulate policies and these are operating effectively;
frameworks to identify, measure, monitor, manage and control material risk components. • To ensure infrastructure, resources, and systems are in place for risk management i.e.
ensuring that the staff responsible for implementing risk management systems perform
RISK MANAGEMENT COMMITTEE (RMC) those duties independently of the financial institution’s risk taking activities; and
• To review the management’s periodic reports on risk exposure, risk portfolio
The RMC is a dedicated Board Committee responsible for the risk oversight function composition and risk management activities.
within the Bank, including but not limited to approving MPI’s risk management strategies,

RISK MANAGEMENT GROUP The Risk Management Group is headed by the Chief Risk Officer and is composed
of the following units:
Risk Management is functionally independent of risk-taking units within the Bank.
It is responsible for the development of measures to ensure that the risk inherent to the Credit Risk Management (CRM) is responsible for the formulation of frameworks,
Bank’s activities are properly identified, measured, controlled, monitored, and reported. methodologies, policies, and tools for the identification, monitoring, reporting and controlling
Risk Management has the following general objectives: of credit risk. CRM also supports the Credit Committee (CC).
• To promote risk management culture and philosophy of risk awareness;
• To assist risk-taking business and operating units in understanding and Regional Group Credit Management (RGCM) primarily focuses on conducting independent
measuring risk/return profiles; credit evaluation of business loan-related proposals from Global Banking and the Consumer
• To develop risk and control infrastructure; Finance Services (Business Banking, Wholesale Auto Finance). The team also handles pre-
• To develop, disseminate, and maintain formalized risk policies, frameworks, approval evaluation of counterparty requests from Global Markets and Trust. RGCM evaluates
methodologies, and tools; project accreditation for Mortgage Loans and assists Credit Risk Management team in policy
• To provide effective means of differentiating the degree of risk in various review. As a critical component of managing asset quality, RGCM undertakes Early Care
business portfolios of the Bank function and spearheads the Asset Quality Management Committees.
Risk Governance and Oversight Credit Risk Review (CRR) provides an unbiased independent judgment on the quality of credit
MPI Risk Management Group Organisational Structure appraisals as well as the quality of credit portfolios of the Bank in accordance with BSP’s best
practices for the management of credit risk.
Board of Directors Credit Risk Portfolio Analytics and Data Governance (CRPA-DG) is responsible for providing
accurate and timely macro-level view of the Bank’s credit loan portfolio. Other responsibilities
Risk Management Group CRO, Risk Management include performing deep-dive statistical analysis across each loan product, developing credit
Committee Maybank Group risk models, and ensuring that credit risk RWA is optimized. Responsible for overseeing the
enterprise-wide management of information and ensuring that data collected and stored are
President & CEO, MPI Chief Risk Officer Chief Risk Officer, International appropriate and sufficient for regulatory reporting and decision making.
Abigail Tina Del Rosario Rajagopal Ramasamy Maybank International
Administrative Reporting Matrix Reporting to Group Risk
Group CISO Chief information Officer

Maybank Group Maybank Philippines
1 2 3 4 5 6 7 8
Regional Credit Risk Portfolio Office of the

Credit Risk Group Credit Credit Risk Analytics and Data Information Non-Financial Market Risk Enterprise Risk
Management Management Review Governance Security Officer Risk Management Management
(CRM) (RGCM) (CRR) (CRPA-DG) (OCISO) (NFR) (MRM) (ERM)
Risk
Management
Office of the Chief Information Security Officer (OCSIO) is responsible for the overall RISK CULTURE
information security and cyber security programs of the Bank, by managing, maintaining,
monitoring, and improving information security goals and objectives consistent with The Bank’s risk framework and governance structure is consistently upheld only if
organizational and business needs. OCISO undertakes the eventual reduction of risks arising reinforced by the right risk culture. In the Bank, a strong risk culture is a fundamental tenet
from potential and actual cyber-attacks by means of employing technical resources to monitor, of risk management and serves as the foundation upon which a robust enterprise-wide risk
detect, respond to, and eradicate emerging threats. The unit is also instrumental in maintaining management structure is built.
the Bank’s cyber security maturity rating at an acceptable level. A strong tone from the top drives the risk culture and strengthened by the tone from the
middle, to ingrain the expected values and principles of conduct that shape the behavior and
Non-Financial Risk (NFR) is responsible for the formulation of frameworks, methodologies, attitudes of employees at all levels across the Bank.
policies, and tools for the identification, monitoring, reporting and controlling of operational risk.
NFR also develops the Bank’s Business Continuity Plan and conducts monitoring of fraud risks. RISK MANAGEMENT PRACTICES & PROCESSES
Systems/tools such as the Risk Control Self-Assessment (RCSA), and Incident Management and
Data Collection (IMDC) are also being maintained by NFR. The following are the five main stages of the risk management process being carried
out by the Bank:
Market Risk Management (MRM) is responsible for the formulation of frameworks,
methodologies, policies, and tools for the identification, monitoring, reporting and controlling
of market, IRRBB, liquidity, and treasury credit risk. The team also provides evaluation, analysis,
information and recommendation on the management of market and liquidity risks, treasury
credit, balance sheet and funding initiatives to ALCO and CC, to facilitate informed strategic Identification Measurement Control Monitoring Reporting
management decision-making. MRM acts as the secretariat for ALCO.
• New/Existing • Methodologies • Qualitative & • Risk exposures • Management
products, • Approaches, quantitative vs controls information
Enterprise Risk Management (ERM) is responsible for the formulation of frameworks, activities & models, controls • Management system
methodologies, policies, and tools for the identification, monitoring, reporting, and controlling initiatives validation, • Preventive information • Board,
techniques measures system Management
of all other material risks faced by the Bank. ERM monitors the overall risks of the Bank at an & analysis • Mitigation and Operational
enterprise-wide level. The unit also drives the Bank’s Internal Capital Adequacy Assessment techniques reporting
Process (ICAAP), Stress Testing exercise and roll-out and management of various Risk-based
Pricing Tools. • Identification – Identification of entity-level and process-level risks through an
established Risk Assessment Process and Risk and Control Self-Assessment exercise.
Risk management principles, policies, procedures, and practices are updated regularly The Bank has also established a process to identify and assess risks for new products
to ensure their relevance and compliance with current and applicable laws and regulations, and processes.
and are made available to all employees. • Measurement – The Bank has established various methodologies, approaches,
models, and techniques to measure both Pillars I and II risks. Data management
and risk infrastructure is in place to carry out this process.

• Control – To control the identified risks, the Bank has established qualitative A strong governance and process framework is embedded in MPI’s Capital Management
and quantitative controls, preventive measures, and mitigation actions and Framework. Appropriate policies are in place governing the transfer of capital within the
active management. Bank. The purpose is to ensure that capital is remitted as appropriate, subject to local
• Monitoring – Monitoring of risk exposures vs. limits/triggers are carried regulatory requirements and overall capital resource is optimized at all levels in MPI.
out by the risk control units. Overall responsibility for the effective management of capital rests with the Board while the
• Reporting – Risk management matters are reported to management and Management is responsible for ensuring the effectiveness of the capital management policies
RMC/BOD on an ongoing basis through various monitoring tools and reports. in an ongoing basis and for updating the Capital Management Framework to reflect revisions
and new developments.
CAPITAL MANAGEMENT
CAPITAL MANAGEMENT PLAN
MPI’s approach to capital management is driven by its strategic objectives and takes into
account all relevant regulatory, economic and commercial environments in which the Bank MPI Capital Management Framework is also supplemented by the MPI Capital
operates. The Bank regards having a strong capital position as essential to the Bank’s business Management Plan to ensure robust monitoring of the Bank’s capital position and to ensure
strategy and competitive position. Thus, implications on MPI’s capital position are taken into that the Bank has adequate levels of capital and optimal capital mix to support the Bank’s
account by the Board and Senior Management prior to implementing major business decisions business plans and strategic objectives during the financial year.
in order to preserve the Bank’s overall capital strength. The quality and composition of capital are key factors in the Board and Senior
Management evaluation of MPI’s capital adequacy position. MPI places strong emphasis on
CAPITAL MANAGEMENT FRAMEWORK the quality of its capital, and, accordingly, holds a significant amount of its capital in the form
of common equity, which is permanent and has the highest loss absorption capability on a
• The Bank has a Capital Management Framework to ensure that the management going concern basis.
of capital is consistent and aligned across MPI.
• The Capital Management Framework, which is approved by the Board, provides a CAPITAL STRUCTURE
comprehensive approach to the management of capital for the Bank. Specifically,
the framework aims to: Based on its audited results preceding two (2) years (FYE December 2020 and 2021), MPI’s
• Establish a formal capital management framework for MPI within which the capital qualifying capital has remained above the regulatory minimum as shown in the table below.
management policies and procedures will be developed and implemented; MPI’s Tier 1 capital, which consists of the Bank’s core capital composed of common shares,
• Formulate the principles and strategies to be adopted by MPI in managing and retained earnings and current year profit less deductions, has made up the largest chunk of its
optimizing its capital; qualifying capital as this accounted for 81% of regulatory capital as of end-December 2021.
• Clearly define roles and responsibilities of the MPI Board of Directors, ManCom and the Tier 2 capital was increased due to the PhP2.0 billion subordinated debt from the
concerned groups/units within the Bank with regard to capital management matters; Maybank Group, availed by MPI in October 2017 after receipt of requisite regulatory approval.
• Establish guidelines for managing capital in an integrated basis and to ensure compliance
with all internal and regulatory requirements across the Bank; and
• Promote a high level of corporate governance in the area of capital management
within the Bank.
Risk
Management
2019-2021 MPI Capital composition: MPI’s ICAAP closely integrates the risk and capital assessment processes. The framework
is designed to ensure that adequate levels, including capital buffers, are held to support MPI’s
Capital Composition current and projected demand for capital under existing and stressed conditions. An ICAAP
(in PhP Millions) FYE 2019 FYE 2020 FYE 2021 Document is submitted to the Management Committee, Risk Management Committee and
Paid-up Common Stock 10,313.19 10,313.19 10,313.19 Board of Directors for a comprehensive review of all material risks faced by the Bank and
Additional paid-in Capital 262.76 262.76 262.76 assessment of the adequacy of capital to support them.
Retained Earnings 2,203.58 2,953.21 1,572.68 In line with the BSP’s Guidelines on ICAAP, MPI annually submits a Board-approved
Undivided Profits 794.84 (1,538.82) 247.88 ICAAP document to the BSP every March 31st, with exceptions for 2020 and 2021 which were
Cumulative FX Translations - - - due in October 2020 and June 2021 respectively, on account of regulatory relief afforded to
Other Comprehensive Income 21.88 41.14 (145.79) local banks by the BSP during the COVID-19 Pandemic. The requirements include an overview
Less: Regulatory Adjustments 1,019.97 1,713.99 1,564.95 of ICAAP, composed of the current and projected financial and capital position, ICAAP
Common Equity Tier 1 Capital 12,576.29 10,317.48 10,685.77 governance, risk assessment models and processes, risk appetite and capital management,
Additional Tier 1 stress testing, and capital planning and the use of ICAAP.
Total Tier 1 Capital 12,576.29 10,317.48 10,685.77
Paid-up Perpetual and Cumulative COMPREHENSIVE RISK ASSESSMENT UNDER ICAAP FRAMEWORK
Preferred Stock - - -
Net Unrealized Gains on AFS Equity Sec The ICAAP Framework shall identify all material risks faced by MPI and measures those risks
purchased (subject to 55% discount) - - -
that can be reliably quantified. The ICAAP, therefore, shall address the following types of risk:
General Loan Loss Provision 724.78 663.57 530.63
Other Limited Life Capital Instruments 1,990.00 1,990.00 1,990.00
• Risks captured under Pillar 1 – These cover credit risk, market risk, operational risk,
and any other risk types included under Pillar 1 of the Basel II Framework.
Total Qualifying Capital 15,291.06 12,971.05 13,206.40
• Risks not fully captured under Pillar 1 – These cover risks which are not fully captured
under Pillar 1 process. Such risks relate to understatement/uncertainty of risks
Minimum Required 2,400.00 2,400.00 2,400.00
calculated under Pillar 1 and example includes model risk.
Excess (Deficiency) 12,891.06 10,571.05 10,806.40
Capital Conservation Buffer 8.23% 7.62% 11.01%
• Risk types not covered by Pillar 1 – These cover risks which are not specifically
addressed under Pillar 1 and examples include credit concentration risk, interest rate
risk in the banking book, and reputational risk.
INTERNAL CAPITAL ADEQUACY ASSESSMENT PROCESS (ICAAP)
Material risks are defined risks, which would materially impact the financial performance
The Bank has a Board-approved ICAAP Framework with areas that cover Capital (profitability), capital adequacy, asset quality and/or reputation of the bank should the risk occur.
Management, Pillar 1 and Pillar 2 Risk Measurement, Minimum Internal Capital Requirement A key process called “Material Risk Assessment Process” is emplaced within MPI to
Calculation, Use of the ICAAP, Governance Structure and Reporting Framework. identify, assess, quantify, mitigate, and manage material risks. This measurement methodology
At MPI, the overall capital adequacy in relation to its risk profile is assessed through a is carried out for the purpose of meeting the objectives of ICAAP, which are to:
process articulated in the ICAAP. The ICAAP has been implemented within the Bank to ensure • Ensure the identification of all material risks;
that all material risks are identified, measured, and reported, and adequate capital levels are • Measure the risks reliably;
consistent with the risk profiles. • Ensure capital is adequate to support all the material risks faced by the Bank.

CAPITAL ADEQUACY RATIOS As at end-December 2021, risk-weighted CAR is at 21.02%. Inclusive of Pillar 2 RWAs,
total capital ratio was at 19.27%. The strong risk –weighted capital ratio against MPI’s Total
MPI’s Capital Adequacy Ratio (CAR) has remained above the minimum regulatory RWA is a testament of the Bank’s resilience and strength in meeting its obligations, amidst
requirement for the recently concluded financial year and prior two financial years. MPI’s changes in the landscape.
risk-based CAR, which takes into account Pillar 1 risks has remained above the 7.5% minimum
requirement by the BSP to Tier 1 Capital Ratio and 10% for the Total Capital Ratio, as shown Pillar 2 risks
in the table below:
“Pillar 2 risk” is defined as any risk faced by the Bank where capital has not been allocated
Capital Adequacy Ratios or inadequately allocated under Pillar 1. Through the Bank’s Material Risk Assessment Process,
(in PhP Millions) FYE 2019 FYE 2020 FYE 2021 the following risk areas are determined to comprise Pillar 2 risks:
Common Equity Tier 1 Capital 12,576.29 10,317.48 10,685.77
1. Collateral Risk 8. Model Risk
2. Credit Concentration Risk 9. Liquidity Risk
3. Country Risk 10. Business Continuity Management
Total Qualifying Capital 15,291.06 12,971.05 13,206.40 4. Interest Rate Risk in the Banking Book 11. IT Risk
Pillar 1 – Credit RWAs 77,579.75 66,045.94 52,956.16 5. Compliance Risk 12. Reputation Risk
Pillar 1 – Market RWAs 1,604.65 547.33 982.47 6. Capital Risk 13. Business & Strategic Risk
Pillar 1 – Operational RWAs 9,223.92 9,137.58 8,876.61 7. New Products & Services
Pillar 1 RWAs 88,408.32 75,730.85 62,815.24
CET 1 Ratio 14.23% 13.62% 17.01%
CREDIT RISK
Tier 1 Capital Ratio 14.23% 13.62% 17.01%
Credit risks arise from obligations from the Bank’s direct lending operations, trade finance
Total Capital Adequacy Ratio 17.30% 17.13% 21.02%
and its funding investment, and trading activities undertaken.
Pillar 2 RWAs 2,556.43 4,229.29 5,721.18
Pillar 1 + Pillar 2 RWAs 90,964.75 79,960.14 68,536.42 CREDIT RISK MANAGEMENT FRAMEWORK
Minimum Capital Charge The CRM framework includes comprehensive credit risk policies, tools, and methodologies
for identification, measurement, monitoring, and control of credit risk on a consistent basis.
The “Minimum Capital Charge” (MCC) refers to the minimum amount of capital, which the Credit Risk Management undertakes the improvement and implementation of Group
Bank is required to hold to support all the material risks it is subjected to. These risks include both risk frameworks, tools, and methodologies for the identification, measurement, monitoring,
Pillar 1 and 2 risks, which are either quantified or assessed based on a qualitative capital matrix. and control of credit risk in accordance to the Bank’s risk appetite and lending direction and
MPI uses the Pillar 1 + Pillar 2 Add-on approach in measuring the capital adequacy for strategies. Methodologies are implemented in coordination with the Maybank Group to ensure
ICAAP. Under this approach, the common risk measure is RWA for Pillar 1 and Pillar 2 risks. consistency of risk management approach. Where applicable, methodologies and tools are
Where there is a specific regulatory requirement for Pillar 2 add-on, such requirement is adopted from the Group and customized to the local operating environment.
translated into the common measure of RWA to derive the aggregate RWAs for ICAAP purposes.
Risk
Management
Credit Risk Management is responsible for setting concentration limits. CRPA-DG aids CRM In terms of measuring the Bank’s ability to withstand the impact of stress conditions,
in compliance monitoring with respect to these limits. CRPA-DG also prepares various credit risk stress testing methodology is used. Through the stress testing, the impact of exceptional
reports submitted to Management, RMC, and the BOD. All loan products are coursed through events on the Bank’s asset quality, profitability, and capital adequacy is measured.
the Regional Group Credit Management and Credit Risk Management for review. In terms of reporting, CRPA-DG prepares regular loan portfolio reports covering areas
The rest of the Risk Management Units also assists in the development and implementation such as business growth, asset quality, concentration of exposures and compliance to
of various mechanisms to support business generation, capital optimization, portfolio applicable regulatory and internal guidelines. These reports are submitted to the CC, RMC,
management, and Basel II implementation. Regional Group Credit Management is responsible BOD and other end-users.
for the pre-approval independent credit evaluation of credit proposals. It ensures that credit
approval structures follow the “four eyes policy” for appropriate check and balance. The Credit RISK MITIGATION
Risk Review (CRR) Unit undertakes the post-approval review of selected loan accounts.
Where appropriate, the Bank requires a second way out in the form of eligible collaterals
RISK MEASUREMENT AND REPORTING or guarantee/surety to mitigate credit risk. There are various collaterals and securities that are
acceptable to the Bank. In evaluating acceptability of collateral, three factors are considered:
To measure risk of default for corporate and commercial loans, the Bank makes use of the control, disposability and margin.
International Risk Rating System (IRRS) which consists of twenty three (23) risk grades that are
mapped to external ratings, as well as risk classification according to BSP guidelines. CAPITAL TREATMENT FOR CREDIT RISK
The IRRS is used as a tool for decision making as well as in determining appropriate
pricing for loan accounts. The key risk indicators for credit measures the Bank’s credit risk MPI computes the minimum capital requirements against credit risk as per BSP’s
position against targets, historical performance or industry average in selected areas as Risk-Based Capital Adequacy Framework under Standardized Approach.
of a given period.
FYE 2019 FYE 2020 FYE 2021

Adjusted Adjusted Adjusted
Credit Risk Total Capital Total Capital Total Capital
RWA Capital RWA Capital RWA Capital
(in PhP Millions) Charge Charge Charge
Charge Charge Charge
On-Balance Sheet Assets 74,176.70 5,934.14 7,417.67 63,625.07 5,090.01 6,362.51 51,100.63 4,088.05 5,110.06
Off-Balance Sheet Assets 3,107.92 248.63 310.79 2,592.83 207.43 259.28 1,621.23 129.70 162.12
Counterparty Risk 295.12 23.61 29.51 138.71 11.10 13.87 341.16 27.29 34.12
Total 77,579.75 6,206.38 7,757.97 66,356.61 5,308.53 6,635.66 53,063.03 4,245.04 5,306.30

The following tables present MPI’s Credit Risk Exposures for on-balance sheet and off-balance sheet assets and counterparty risk-weighted assets:
FYE 2019
Exposures Covered by
Total Risk-Weighted On-Balance Sheet Assets Exposures, Net of Specific Exposures Not Covered by
CRM, Gross of Materiality Risk-Weighted Asset
(in PhP Millions) Provisions CRM
Threshold
Cash on Hand 1,522.52 - 1,522.52 -
Checks and Other Cash items 2.75 - 2.75 0.55
Due from Bangko Sentral ng Pilipinas (BSP) 9,742.13 - 9,742.13 -
Due from Other Banks 3,331.29 - 3,331.29 1,770.89
Financial Assets Designated at Fair Value through Profit or Loss - - - -
Available-for-Sale (AFS) Financial Assets 2,873.85 - 2,873.85 679.43
Held-to-Maturity (HTM) Financial Assets 11,621.45 - 11,621.45 2,406.29
Unquoted Debt Securities Classified as Loans - - - -
Loans and Receivables 68,209.73 240.43 67,969.30 62,247.96

Loans and Receivables Arising from Repurchase Agreements,
Certificate of Assignment/Participation with Recourse, and - - - -
Securities Lending and Borrowing Transactions
Sales Contract Receivables (SCR) 457.51 - 457.51 460.92
Real and Other Properties Acquired (ROPA) 1,140.04 - 457.51 1,710.06
Total Exposures Excluding Other Assets 98,901.27 240.43 97,978.31 69,276.09
Other Assets 5,492.11 - 5,492.11 4,874.67
Total Exposures Including Other Assets 104,393.38 240.43 103,470.42 74,150.76

Total Risk-weighted On-Balance Sheet Assets not covered by
74,150.76
CRM
Total Risk-weighted On-Balance Sheet Assets covered by CRM 25.94
TOTAL RISK-WEIGHTED ON-BALANCE SHEET ASSETS 74,176.70

Risk
Management
FYE 2020
Total Risk-Weighted On-Balance Sheet Assets Exposures, Net of Exposures Not Covered by
(in PhP Millions) Specific Provisions CRM
Threshold
Cash on Hand 1,313.61 - 1,313.61 -
Available-for-Sale (AFS) Financial Assets 7,870.95 - 7,870.95 1,693.62

Certificate of Assignment/Participation with Recourse, and 946.68 - 946.68 -
Other Assets 4,437.73 - 4,437.73 3,834.33

Total Risk-weighted On-Balance Sheet Assets not covered
63,593.36
by CRM

FYE 2021
Total Risk-Weighted On-Balance Sheet Assets Exposures, Net of Exposures Not Covered by
(in PhP Millions) Specific Provisions CRM
Threshold
Cash on Hand 1,749.94 - 1,749.94 -
Available-for-Sale (AFS) Financial Assets 8,623.50 - 8,623.50 1,128.19

Certificate of Assignment/Participation with Recourse, and 4,740.29 - 4,740.29 -
Other Assets 5,895.84 - 5,895.84 5,162.82

Total Risk-weighted On-Balance Sheet Assets not covered by
51,062.70
CRM

Risk
Management
FYE 2019
Total Risk-Weighted Off-Balance Sheet Assets Notional Credit Equivalent Risk-Weighted

(in PhP Millions) Principal Amount Amount Assets
Direct Credit Substitutes (e.g. general guarantees of indebtedness and acceptances) 946.22 946.22 553.75
Transaction-related contingencies (e.g. performance bonds, bid bonds, warranties and stand-by LCs related to particular transactions) 250.92 125.46 75.46
Trade-related contingencies arising from movement of goods (e.g. documentary credits collateralized by underlying shipments)
12,393.56 2,478.71 2,478.71
and commitments with an original maturity of up to one (1) year
Other commitments which can be unconditionally cancelled at any time by the bank without prior notice and those not involving credit risk 14,183.86 - -
Total Notional Principal Amount 27,774.56 3,550.39
TOTAL RISK WEIGHTED OFF-BALANCE SHEET ASSETS 3,107.92
FYE 2020
Notional
Total Risk-Weighted Off-Balance Sheet Assets Credit Equivalent Risk-Weighted
Principal
(in PhP Millions) Amount Assets
Amount
9,267.04 1,853.41 1,853.29

FYE 2021
Notional
Total Risk-Weighted Off-Balance Sheet Assets Credit Equivalent Risk-Weighted
Principal
(in PhP Millions) Amount Assets
Amount
3,950.19 790.04 790.04
FYE 2019
Total Counterparty Risk-Weighted Assets in the Banking Book Potential Future Credit Equivalent Risk-Weighted
Notional Amount
(in PhP Millions) Credit Exposure Amount Assets
Interest Rate Contracts 2,476.59 10.13 205.33 111.15
Exchange Rate Contracts 28,715.83 297.29 350.33 183.97
Equity Contracts - - - -
Credit Derivatives - - - -
Total Notional Amount 31,192.42 307.42 555.66
TOTAL COUNTERPARTY RISK-WEIGHTED ASSETS OF DERIVATIVE TRANSACTIONS 295.12

Risk
Management
FYE 2020
Total Counterparty Risk-Weighted Assets in the Trading Book* Potential Future Credit Equivalent Risk-Weighted
Notional Amount
FYE 2021
Total Counterparty Risk-Weighted Assets in the Trading Book* Potential Future Credit Equivalent Risk-Weighted
Notional Amount
*Note: Derivative transactions classified as HFT, and reported under Trading Book starting 2020.


Risk weighted on-balance sheet assets covered by credit risk mitigants were based • Ensure that the market, IRRBB, and liquidity risk management objectives of the
on exposures with collateralized transactions as well as guarantees by the Philippine Bank are achieved through the development, implementation, maintenance and
National Government. enhancement of a comprehensive risk management process that comprises of
Third party credit assessments were based on the ratings by Standard & Poor’s, qualitative and quantitative methodologies to identify, measure, control and monitor,
Moody’s Investors Service, Fitch Ratings, and Philippine Rating Services Corp. on exposures among others, the following:
to sovereigns, multilateral development banks, local government units, and government-owned - Market risks, which covers the risk of loss of earnings arising from changes
and- controlled corporations. in interest rates, foreign exchange rates, equity and commodity prices and
No MPI exposure has been covered nor protected by credit derivatives. Likewise, their implied volatilities
MPI has no outstanding investment in Structured Products. - Liquidity risks, which covers liquidity crisis, funding structure, fund raising
policies and strategies, diversification of funding sources, gap analysis and
MARKET RISK management
- IRRBB, which covers the risk of loss in earnings or in economic value on
The Bank recognizes market risk as the adverse impact on earnings or capital, either banking book exposures arising from movements in the interest rates
immediate or over time, arising from changes in the level of volatility of market rates or prices • Provide support functions such as evaluation, analysis, and recommendations on
such as interest rates, foreign exchange rates, commodity prices and equity prices. Market risk the management of market and liquidity risks, treasury credit, balance sheet, and
arises through the Bank’s trading and balance sheet activities. The primary categories funding initiatives to the ALCO and Credit Committee to facilitate informed strategic
of market risk for the Bank are: management decision making
• Provide consultative services and support functions to all relevant units within
i. Interest rate risk: arising from changes in prevailing interest rates and implied the Bank on matters pertaining to market and liquidity risks management and
volatilities on interest rate options; and Global Markets operations
ii. Foreign exchange (FX) rate risk: arising from changes in exchange rates or risk • Participate, in collaboration with other risk management units within the Bank on
arising from adverse movements/mismatches in currencies. cross border risk management issues , to identify and mitigate various risk inherent
in new Global Markets and core banking products prior to product introduction
The Risk Management Committee is the overall risk oversight body. Management of • Perform regular independent supervision of Global Markets operations
market, interest rate risk in the banking book (IRRBB), • If the need arises, act as Secretariat for the execution of the Contingency Funding
and liquidity risks is delegated to the Asset and Liability Management Committee (ALCO), Plan under the Liquidity Event Management Committee (LEMC)
who is responsible for the establishment of appropriate risk policies and limits, duly approved
by the RMC; and execution of both strategic and tactical actions to maintain the exposure All market risk policies are reviewed at least annually to ensure compliance with
within the set tolerances and meet the risk and reward objectives of the Bank. regulatory requirements and up to par with international best practices.
The Bank established the Market Risk Management Unit (MRM) to assist the BOD, RMC, The Bank’s traded market risk exposures are primarily from proprietary trading, client
ALCO in monitoring and managing the Bank’s market risk exposures independently from servicing and market making. Various risk measurement techniques are used by the Bank to
the risk taking units. MRM also acts as business partners with Global Markets in the daily monitor and manage market risk, such as Price-Value-of-a-Basis-Point (PV01), FX net open
monitoring of its positions against approved risk measures. MRM’s roles include the following: position (NOP), Value-at-Risk (VaR), and Stop Loss; IRRBB, on the other hand, is managed using
Earnings-at-Risk (EaR) and Impact on Economic Value (IEV). In addition, a variety of stress
testing techniques are performed to complement the reporting to Management.
Risk
Management
RISK MEASUREMENT AND REPORTING Accordingly, during a period of rising interest rates, a bank with a positive gap would
be in a position to invest in higher yielding assets earlier than it would need to refinance its
1. Interest rate risk (IRR) interest rate sensitive liabilities. During a period of falling interest rates, a bank with a positive
The Bank is exposed to various risks associated with the effects of fluctuations in the gap would tend to see its interest rate sensitive assets repricing earlier than its interest rate
prevailing levels of market interest rates on the financial position and cash flows. Interest rate sensitive liabilities, which may restrain the growth of its net income or result in a decline in net
risk exposure is identified, measured, monitored and controlled through limits and procedures interest income. To reflect sensitivity of certain assets and liabilities, analysis of balances and
set by the Management to protect total net interest income from changes in market its movement is done via application of behavioral assumptions to repricing cash flow.
interest rates. The Bank monitors the exposure of financial assets and financial liabilities to fluctuations
in interest rates by measuring the impact of interest rate movements on its interest income.
Price Value of 1 basis point (PV01) This is done by modeling the impact of various changes in interest rates to the Bank’s interest-
PV01 measures the change in the value of the portfolio with 1 basis point increase in the yield related income and expenses. The EaR and IEV is computed and reported monthly to ALCO and
curve. Thresholds are set annually to re-assess the Bank’s risk appetite and strategy. The PV01 bimonthly to RMC. Additionally, the Bank uses sensitivity analysis for stress testing of IRRBB.
is computed and reported daily to Global Markets and monthly to ALCO. Parallel shock of 300 and 400 basis points are simulated and reported for perspective.
Earnings-at-Risk (EaR) and Impact on Economic Value (IEV) 2. Foreign Exchange Risk
The Bank emphasizes the importance of managing interest rate risk in the banking book as Foreign exchange (FX) rate risk is the risk that the Bank may suffer losses as a result
most of the balance sheet items of the Bank generate interest income and interest expense, of adverse exchange rate movements during a period in which it has an open position in a
which are indexed to interest rates. Volatility of earnings can pose a threat to the Bank’s currency. Where the value of asset/inflow exposures in one currency is not equal to the value
profitability while economic value provides a more comprehensive view of the potential of liability/outflow exposures in that currency, it is described as an open position. It may be
long-term effects on the Bank’s overall capital adequacy. short (liabilities exceed assets) or long (assets exceed liabilities).
The Bank controls its FX exposures by transacting in permissible currencies. Management of
All policies, procedures and limits related to IRRBB are presented and deliberated FX risk is done via monitoring of FX NOP and PV01 for those FX positions in the trading book. If
in ALCO prior endorsement to RMC for final resolution. Balance sheet management is the the level reaches the trigger point, action is required to bring back the level to within the normal
prime responsibility of ALCO and key strategies on how to optimize assets and liabilities range. FX risk is reviewed together with other risks to determine the Bank’s overall risk profile.
are discussed every meeting. Foreign currency-denominated liabilities generally consist of: (a) foreign currency-
With this, the Bank utilizes EaR to measure the sensitivity of the Bank’s Net Interest denominated deposits in the Bank’s FCDU, (b) accounts maintained in the Philippines or which
Income (NII) due to a 100 basis points (bps) change in the underlying interest rates over a are generated from remittances to the Philippines by Filipino expatriates and overseas Filipino
period of one year. IEV, on the other hand, shows the sensitivity of economic value on the workers who retain for their own benefit or for the benefit of a third party, and (c) foreign
long term to a 100 bps change in the market yield curve. currency-denominated borrowings appearing in the regular books of the Bank.
EaR and IEV are calculated based on the repricing gaps, or the difference between Foreign currency-denominated deposits are generally used to fund the Bank’s foreign
the amounts of rate sensitive assets and the amounts of rate sensitive liabilities. A gap is currency-denominated loan and investment portfolio in the FCDU. Banks are required by
considered negative when the amount of interest rate sensitive liabilities exceeds the amount the BSP to match the foreign currency-denominated liabilities with the foreign currency-
of interest rate sensitive assets. A gap is considered positive when the amount of interest rate denominated assets held under the FCDU books.
sensitive assets exceeds the amount of interest rate sensitive liabilities.

LIQUIDITY RISK • Maintaining a robust contingency funding plan that includes strategies,
decision-making authorities, internal and external communication and courses
Liquidity risk is the risk that the Bank’s financial condition or overall safety and soundness of action to be taken under different liquidity crisis scenarios; and
is adversely affected by an inability (or perceived inability) to meet its obligations and may • Conducting Contingency Funding Plan (CFP) testing to examine the effectiveness
result in the Bank incurring unacceptable losses. The Bank’s obligations and the funding and robustness of the plans.
sources used to meet them, depend significantly on its business mix, its balance sheet
structure and the cash flow profile of its on- and off-balance sheet obligations. Since 2018, MPI monitors its Liquidity Coverage Ratio (LCR) on a daily basis; joint
The Non-Trading Book Policy, which includes policies on liquidity risk management, is management and monitoring are carried out by Global Markets and Group Finance. LCR
reviewed annually and approved by Management. The Bank’s liquidity risk position is actively measures the level of high quality liquid assets (HQLA) required to survive a significant stress
discussed and managed at the ALCO and RMC in line with the approved guidelines and policies. scenario lasting thirty (30) calendar days. Bank-wide LCR stood at 147.87% for the month-end
The Bank, in line with the Maybank Group, has implemented leading practices as a December 2021.
foundation to manage and measure its liquidity risk exposure. The Bank uses a range of tools to
monitor and control liquidity risk exposure such as liquidity gap, early warning signals/liquidity STRESS TESTING AND CONTINGENCY FUNDING PLAN
indicators and stress testing. The liquidity positions of the Bank are monitored regularly
against the established policies, procedures and thresholds. The Bank uses stress testing and scenario analysis to evaluate the impact of sudden stress
events on liquidity position. Scenarios are based on hypothetical events that include bank
MANAGEMENT OF LIQUIDITY RISK specific crisis and general market crisis scenarios. The stress test result provides an insight of the
Bank’s funding requirements during different levels of stress environments and is closely linked
For day to day liquidity management, Global Markets will ensure sufficient funding to to the Bank’s CFP, which provides a systemic approach in handling any unexpected liquidity
meet the Bank’s intraday payment and settlement obligations on a timely basis. In addition, disruptions. The plan encompasses strategies, decision-making authorities, internal and external
the process of managing liquidity risk includes: communication and courses of action to be taken under different liquidity crisis scenarios.
The Bank also conducts CFP tests to ensure the effectiveness and operational feasibility
• Maintaining an adequate portfolio of high quality liquid assets as protection of the CFP. The key aspects of the testing are to focus on the preparedness of key senior
against any unforeseen interruption in cashflows; management and their respective alternate in handling a simulated distress funding situation.
• Maintaining a stable funding to support illiquid assets and business activities It also provides exposure and develops capabilities on how to respond to a liquidity crisis
• Daily and monthly monitoring of liquidity ratios against internal and situation and operate effectively with each other under challenging circumstances.
regulatory requirements;
• Monthly monitoring of gaps arising from mismatched maturity of assets and CAPITAL TREATMENT FOR MARKET RISK
liabilities; and establishing behavioral assumptions for non-maturing balance
sheet accounts: MPI computes the minimum capital requirements against market risk as per BSP’s
• Monthly monitoring and managing of concentration ratios of deposits; Risk-Based Capital Adequacy Framework under the Standardized Approach. This is imperative
• Conducting monthly liquidity stress testing under various scenarios as part as capital serves as a financial buffer to withstand any adverse market risk movements.
of prudent liquidity control;
Risk
Management
FYE 2019 FYE 2020 FYE 2021

Adjusted Adjusted Adjusted
Total Capital Total Capital Total Capital
Market Risk (in PhP Million) RWA Capital RWA Capital RWA Capital
Interest Rate Exposures 230.14 18.41 23.01 469.10 37.53 46.91 451.01 36.08 45.10
Equity Exposures - - - - - - - - -
Foreign Exposures 1,374.52 109.96 137.45 78.23 6.26 7.82 531.45 42.52 53.15
Options - - - - - - - - -
Total 1,604.65 128.37 160.47 547.33 43.79 54.73 982.47 78.60 98.25
OPERATIONAL RISK OPERATIONAL RISK MANAGEMENT METHODOLOGY AND TOOLS
Operational risk is defined as the risk of loss resulting from inadequate or failed internal A variety of methodologies and tools have been implemented to effectively identify,
processes, people and systems or from external events. assess, measure and report operational risk exposures on a timely basis, thereby serving as
tools to facilitate decision-making and enhance the operational risk management process.
OPERATIONAL RISK MANAGEMENT FRAMEWORK
• Risk & Control Self-Assessment (RCSA)
Non-Financial Risk (NFR) is responsible for the formulation and implementation of RCSA is a process of continual assessment of inherent operational risks and controls to
the operational risk framework within MPI, which encompasses the operational risk identify control gaps and to develop action plans to close the gaps. It is a risk profiling tool,
management strategy and governance structure. Another key function is the development which facilitates effective operational risk management for MPI.
and implementation of operational risk management tools and methodologies to identify, SBU undertakes the RCSA exercise to give due focus in the review of business processes
measure, monitor and control operational risks. to enhance critical operations and controls, especially those assessed to be in the ‘Caution’
Risk taking units (Strategic Business Unit) constitute an integral part of the operational and ‘Alert’ categories.
risk management framework and are primarily responsible for the day-to-day management of The SBU level risk profiling exercises are compiled to establish MPI’s Risk Profile on a
operational risk. quarterly basis. The consolidated Risk Profile is presented to the Management Committee
Operational Risk Officers (ORO) have been appointed within the various Strategic and Risk Management Committee.
Business Units (SBU) and are responsible for implementing and executing the operational
risk management processes and tools. They are also responsible for the investigation of • Key Risk Indicators (KRIs)
operational losses, monitoring and analysis of risk trends and staff training on operational KRIs are embedded into critical processes to provide early warning signals of increasing
risk management practices and governance. risk and/or control failures by flagging up given frequencies of events as a mechanism for
continuous risk assessment/monitoring.
SBUs monitor their risk exposures via KRIs and are required to develop specific and
concrete action plans for those indicators that fall under ‘Caution’ and ‘Alert.’ ORM assists
the SBU to develop and validate the KRIs to ensure appropriate thresholds are set.

• Incident Management & Data Collection (IMDC) Operational Risk (in PhP
RWA
Total Capital Adjusted Capital
IMDC provides a platform of a structured and systematic process for SBU to identify and Million) Charge Charge
focus attention on operational ‘hotspots’. This facilitates the establishment of a centralized FYE 2019 9,223.92 737.91 922.39
database of consistent and standardized operational risk incident formation readily available FYE 2020 9,137.58 737.91 922.39
for analysis of operational lapses to minimize the risk impact of future operational losses. FYE 2021 8,876.61 710.13 887.66
OPERATIONAL RISK MITIGATION AND CONTROL

COMPLIANCE RISK
Risk Mitigation tools and techniques are used to minimize risk to an acceptable level
and are focused on: Compliance risk is the risk that may erode the franchise value of the Bank such as legal
or regulatory sanctions, material financial loss, or loss to reputation which the Bank may
• Faster resumption of business in the event of a disaster/incident; and suffer. In MPI, compliance risk includes reputational risk, non-Compliance with regulatory and
• Decreasing the impact on the business, should it occur. statutory requirements, money laundering, terrorism financing and sanctions risks, internal
conduct such as poor compliance culture, conduct and ethics, conduct of financial services
The control tools and techniques to mitigate operational risk are as follows: and critical strategic risk areas.
Management of compliance risk is everyone’s responsibility and takes place at different
• Business Continuity Management (BCM) hierarchical level. The compliance risk governance structure for MPI is emphasized through
The BCM sub-sector is responsible for the formulation and implementation of a BCM Board of Directors, senior management, business lines, control and reporting functions.
Framework, which outlines a comprehensive and integrated approach to ensure business The governance model below places accountability and ownership of compliance risk while
continuity and mitigate possible disruptions to MPI’s critical business operations, and people facilitating the appropriate level of independence and segregation of duties between the
safety in the event of disruptions and disasters. three (3) lines of defense.
In line with the BCM Framework requirements, Business Continuity Plans (BCP) were
developed for all critical sectors. The BCP documents and exercises are reviewed on a yearly basis.
MPI also conducts an Enterprise Crisis Simulation Exercise (ECSE), involving main Board of Directors
critical business functions, to demonstrate the level of readiness within the Bank to cope
with any eventuality.
Senior Management
CAPITAL TREATMENT FOR OPERATIONAL RISK
Operational Risk capital charge is calculated using The Standardized Approach (TSA)
wherein business activities are mapped into eight business lines as prescribed by Basel II
and BSP Risk-Based Capital Adequacy Framework.
1st Line 2nd Line 3rd Line
of Defense of Defense of Defense
Risk
Management
Failure to comply with all applicable laws, rules and regulations may result in not only Internal Compliance Officers and Deputy Internal Compliance Officers within the business
the imposition of penalties (for both MPI and the concerned staff personally), staff disciplinary units (first lines of defense) are appointed to drive their unit towards the sound management
action in accordance to MPI’s Code of Discipline but also damage to the Bank’s reputation. of business and compliance risks. They work closely with Compliance Management to identify,
The impact of non-compliance on an employee’s performance appraisal for the year shall be set assess and monitor compliance risks and administer the consistent implementation MPI’s
by Senior Management and presented to the Board for notation. Compliance Program, Anti-Money Laundering/Counter-Terrorist Financing and Sanctions
Policy and Procedures and the Data Privacy Program.
COMPLIANCE RISK MANAGEMENT

MANAGEMENT OF MONEY LAUNDERING AND TERRORISM FINANCING
Compliance Risk Management is premised on five (5) broad principles.
MPI is committed to the fight against money laundering and terrorism financing, and
• Establish risk appetite & strategy which articulates the nature, type and level of recognizes its obligation to prevent financial channels and products from being used by money
compliance risk MPI is willing to assume and is reflective of the strategies and launderers and terrorist organisations for illicit purposes. To fulfill this commitment, the officers
business objectives set by Management and the Board. The risk appetite and strategy and staff of MPI continue to show vigilance in detecting and preventing potential or identified
is reviewed on a continuous basis to ensure that it remains relevant and reflects any money laundering or suspicious activities. MPI officers and staff conduct business in conformity
changes in the business environment and strategic direction. with high ethical standards, and fully comply with existing laws, rules and regulations. As far
• Ensure a clear, effective and robust governance structure which includes the role as practicable and not inconsistent with local regulations, MPI also complies with the AML &
of the Board and Senior Management with well defined, transparent and consistent CFT (Anti-Money Laundering & Counter Financing of Terrorism) regulations of the Bank Negara
lines of responsibility. Malaysia – the regulator of MPI’s parent company, the Malayan Banking Berhad (MBB).
• Promote strong compliance culture that is guided by strong compliance risk MPI acknowledges sound AML & CFT risk management practices, as follows: (a) adequate and
management which support and provides appropriate standards and incentives for active Board and Senior Management oversight;(b) acceptable policies and procedures; (c) appropriate
professional and responsible behavior. The compliance culture is to be embedded monitoring and MIS; and (d) comprehensive internal controls and audit. The Bank further recognizes
in the behavior of the organization at all levels, reflected in risk taking activities, the management and defense of AML & CFT risk is premised on three lines of defense, as follows:
roles and responsibilities, frameworks and policies. Structured learning programs
are established to maintain the desired direction towards compliance and expected
compliance behavior. Risk Taking Risk Control Internal Audit
• Establish adequate frameworks, policies, procedures and guidelines that reflect the
compliance risk profile including material and potential risk exposures, operating
environment and compliance processes to guide businesses on day-to-day
compliance risk management. 1st Line of 2nd Line of 3rd Line of
• Ensure sufficient resources & system infrastructure that appropriately support Defense Defense Defense
compliance risk management practices and processes and enable access to reliable,
accurate and relevant information on a timely basis, thereby facilitating informed
decision making by management.
Management of Business and Compliance Risks

MPI has a Board-approved AML/CFT Policy and Procedures which provides for and details LEGAL RISK
procedures in complying and implementing the requirements of the Philippines’ Anti-Money
Laundering Act (Republic Act No. 9160, as amended) and its applicable implementing rules Legal risk is defined as a risk incurring actual or potential loss that arises due to flawed
which covers, but is not limited to, the following: (a) customer identification process including documentation, change in regulations/laws, new judicial decisions, locations of counterparties
acceptance policies and on-going monitoring processes, (b) record keeping and retention, and choice of governing law, that threatens the Bank’s capacity to consummate important
(c) covered transaction reporting and (d) suspicious transaction reporting, including the transactions, enforce contractual agreements or implement specific strategies and activities.
adoption of a system capable of flagging, monitoring and reporting of suspicious transactions. The Bank’s Legal Department is committed to support and service the business units of
The Bank’s AML/CFT Policy is revisited periodically in order to determine its effectiveness the Bank by providing professional legal advisory services in a timely, accurate and efficient
and is revised accordingly, or as often as may be deemed necessary. The Bank’s AML/CFT Policy manner to facilitate the execution of MPI’s business objectives.
has been updated and approved by the Board of Directors in August 2021. Management of legal risks is guided by the Bank’s Legal Risk Management Framework.
MPI uses the Scorecard Approach to assess the impact of legal risk of the Bank’s reputation.
MANAGEMENT OF RELATED PARTY TRANSACTIONS This reputational risk review by Legal Department assesses the following overall level of
reputational risk:
All Related Parties Transactions (RPT), as defined by the Bangko Sentral ng Pilipinas,
are subjected to the Bank’s applicable standards for credit and non-credit-related items to • Litigation cases that may create negative impact on the bank, financially
ensure transparency and due diligence when performing tasks as is customary even for non- and reputation wise.
related parties. This is to ensure the interest of the Bank and its stakeholders are protected. • Ability of the bank to manage these litigation cases to protect the bank from
In cases where such RPT goes beyond the set materiality thresholds and parameters, financial losses and reputational risk.
escalation procedures are in place to deliberate viability of such a transaction as management • Scope of assessment to include overseas branches.
sees fit to endorse for higher approval.
Material RPTs require endorsement from a management-level committee, prior to being The reputational risk scorecard assessment for Legal is being conducted on a quarterly basis
presented to the RPT Committee and Board of Directors for approval. Related Parties to a to determine the amount of residual risk and capital charge that needs to be allocated if any.
transaction are prohibited from direct or indirect involvement in the approval process,
as is stipulated in the Bank’s internal policy.
Transaction Amount (in PhP Millions)
DOSRI 995.17
Other Related Party 1,812.83
Sub-Total DOSRI & Other RPT 2,808.01
Internal Borrowings 11,372.94
Unsecured Subordinated Loans 2,020.46
Sub-Total Internal Borrowings 13,393.40
Total Material RPTs 16,201.41
Sustainability and
Corporate Responsibility
“
Our commitment to sustainability is
grounded in the knowledge that
economically, and socially responsible
business practices are imperative to
the long-term well-being of our
stakeholders and our
business.

Sustainability and
I
n Maybank Philippines, we believe that financial
sustainability goes hand in hand with the development
of the communities where we have presence.
Our approach to sustainability is anchored on our
mission and purpose of Humanising Financial Services, and
places people at the heart of what we do, and guided by our
T.I.G.E.R. core values.
Our purpose is also aligned with Maybank Group’s
long-term priorities and the new operating landscape by
being in the heart of the community.
We remain committed to the fundamentals of our
business while endeavoring to positively impact the markets
where we operate. Our efforts to instill sustainability in our
business are guided by the needs of those we serve, including
our customers, our environment, our workforce and our
community. Beyond charitable giving, we are committed to
giving back through long-term partnerships, volunteerism
efforts and targeted social investments, with our initiatives
being purposely relevant, impactful and rewarding to our
chosen beneficiaries in the long-term.
Community and Citizenship Access to Products and Services
Key Areas of Focus
Our advocacies: Our commitments:
As an organisation, our corporate social responsibility Education * Community Empowerment * Arts and Culture * Focus on Customers * Digitalisation * Product Stewardship *
initiatives are guided by the Maybank Group’s Sustainability Healthy Living * Disaster Relief Environment
Plan which focuses on the creation of long-term value across
three pillars: Community and Citizenship, Our People and Our People Governance Structure and Management
Access to Products. This sustainability plan has helped
shape our corporate social responsibility commitments Our priorities: The MPI Board of Directors (BOD) and Management
and strengthened the integration of sustainability and Employee Engagement * Talent and Leadership * Learning Committee (ManCom) have joint oversight over the Bank’s
ESG (environment, social and governance) practices in and Development * Diverse and Inclusive Workplace * corporate responsibility programs and initiatives, including
our operations, creating foundation from which to drive Safety, Health and Well-Being identified Maybank Foundation flagship programs being
impact and value.
Sustainability and
implemented in the country. Management and administration CashVille Kidz areas each year. In 2021 alone, the CVK program has reached
of these activities are under the responsibility of Corporate 5,940 students in 17 private and 8 public schools, surpassing
Affairs, who likewise champions the Cahaya Kasih employee Cashville Kidz is an exciting, innovative and award- its target of 4,550 students and 13 schools.
volunteerism program of the Bank in partnership with winning financial literacy animated series of 8 episodes per CashVille Kidz is currently conducted in six (6) countries
Human Capital. season, with each episode focusing on a specific financial across the region namely Malaysia, Cambodia, Philippines,
lesson, designed to teach young children aged 9 – 12 years Indonesia, Singapore and Myanmar, and is endorsed by
Core Programs and Initiatives about the importance of money and financial management various key stakeholders across Southeast Asia.
to be financially savvy. A flagship programme of the Maybank
R.I.S.E. Programme Foundation, CashVille Kidz is developed in partnership with Maybank Training and Learning Center (TLC)
MoneyTree Asia Pacific Sdn Bhd.
Reach Independence & Sustainable Entrepreneurship Since its launched in the Philippines in 2019, the Maybank TLC, one of the flagship programmes of the
or R.I.S.E. is a unique economic empowerment programme CashVille Kidz financial education program has already Maybank Foundation, was conceived and launched to benefit
designed to provide real and tangible support for reached more than 13,450 students in 48 public and private underprivileged youths who have little or no access to formal
disadvantaged communities, with a special focus on elementary schools in Metro Manila and nearby Cavite technical schooling.
persons with disabilities (PWD). province— and surpassing target Key Performance Index
The R.I.S.E. Program if one the flagship programs funded
by the Maybank Foundation that is implemented in four
countries (Malaysia, Indonesia, the Philippines and Laos) in
partnership with People Systems Consultancy Sdn Bhd (PSC).
It builds financial inclusion and intelligence across personas
with disabilities and marginalized communities.
Piloted in the Philippines in 2017, a total 3,654
participants have been trained nationwide, with the top 40%
recording an average income increase of 677.14%. With the
onset of the Covid-19 pandemic, training modality has been
adjusted to comply with IATF regulations on holding training
sessions, and since shifting to online mode of training, a total
of 1,557 participants from Luzon, Visayas and Mindanao have
been trained and mentored.

Corporate Donation
In 2020, MPI decided to forego the traditional corporate

giveaways exercise and instead reallocated the funds to
extend assistance to two key beneficiaries. First is a donation
of full Level 4 personal protective equipment (PPE) to
the Southern Philippines Medical Center in Davao City, a
designated Covid-19 referral hospital. Second is extending
food augmentation assistance to 250 farmer-tenant families
displaced by Typhoons Rolly (particularly near Naga City) and
TLC provides the opportunity for youths to enhance has been known as Global CSR Day and it was an occasion the Typhoon Ulysses (in Santiago, Isabela) through CFC Ancop.
their vocational skills and education in order to increase their entire Maybank family participates in and looks forward to.
employability and subsequently, their income. The first TLC, However, movement restrictions brought about by the
which is a partnership between Maybank Foundation and the pandemic had posed challenges to the programme, thus
Xavier University in Cagayan de Oro City, was completed temporarily halting its implementation in 2020.
in March 2017 and has seen skills trainings and workshops
hosted by the Xavier Ecoville Multi-Purpose Cooperative Maybank Performing Arts Theater
(XEMPCO). Subsequently, 11 training modules have been
conducted at the Maybank TLC, including courses on basic The BGC Arts Center is regarded as the newest cultural
sewing, basic baking of bread and pastries, accounting for hub in Bonifacio Global City, and this latest venue for the arts
non-accountants, basic computer and disaster risk reduction boasts of three inspired spaces – the most prominent of them
and management, impacting more than 200 participants all is the Maybank Performing Arts Theater, a 3-storey building
and their families. that houses six different function halls and performance spaces.
In April 2019, a formal handover ceremony was made to In 2019, the Maybank Performing Arts Theater was the
XEMCO to mark the completion of the training center and venue of Maybank Philippines’ two key corporate events: the
empower the community to map their way forward. country pilot of the award-wining CashVille Kidz (July) and the
The programme is currently running in Myanmar as well. regional launch of R.I.S.E. 2.0. (September).
In 2013, Maybank committed a USD 1.0 million
Global CSR Day sponsorship to Bonifacio Arts Foundation, Inc. for the
construction of the theater. This sponsorship, shared between
Each year, Maybankers worldwide come together to the Maybank Group, Maybank Philippines and Maybank Kim
simultaneously engage in meaningful outreach projects that Eng, will grant Maybank the naming rights for the three-storey
impact the lives of the communities where the Bank has performing arts theater for ten (10) years.
presence. This one day of simultaneous community outreach
Audited
Financial
Statements
“
Our key strengths is what
sets us apart and enable
us to create value for our
stakeholders.

Maybank Philippines, Incorporated

Independent Auditor’s Report
The Board of Directors and Stockholders ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the
Maybank Philippines, Incorporated audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Maybank Corporate Centre
7th Avenue corner 28th Street, Responsibilities of Management and Those Charged with Governance for the Financial Statements
Bonifacio Global City, Taguig City
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with PFRSs, and for such internal control as management determines is necessary to enable
Report on the Audit of the Financial Statements the preparation of financial statements that are free from material misstatement, whether due to fraud
or error.
Opinion
In preparing the financial statements, management is responsible for assessing the Bank’s ability to
We have audited the financial statements of Maybank Philippines, Incorporated (the Bank) which continue as a going concern, disclosing, as applicable, matters related to going concern and using the
comprise the statements of financial position as at December 31, 2021 and 2020, and the statements of going concern basis of accounting unless management either intends to liquidate the Bank or to cease
income, statements of comprehensive income, statements of changes in equity and statements of cash operations, or has no realistic alternative but to do so.
flows for the years then ended, and notes to the financial statements, including a summary of significant
accounting policies. Those charged with governance are responsible for overseeing the Bank’s financial reporting process.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial Auditor’s Responsibilities for the Audit of the Financial Statements
position of the Bank as at December 31, 2021 and 2020, and its financial performance and its cash flows
for the years then ended in accordance with Philippine Financial Reporting Standards (PFRSs). Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
Basis for Opinion includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with PSAs will always detect a material misstatement when it exists.
We conducted our audits in accordance with Philippine Standards on Auditing (PSAs). Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Misstatements can arise from fraud or error and are considered material if, individually or in the
Statements section of our report. We are independent of the Bank in accordance with the Code of Ethics aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
for Professional Accountants in the Philippines (Code of Ethics) together with the ethical requirements basis of these financial statements.
that are relevant to our audit of the financial statements in the Philippines, and we have fulfilled our other
Independent Auditor’s Report
As part of an audit in accordance with PSAs, we exercise professional judgment and maintain professional Report on the Supplementary Information Required Under Bangko Sentral ng Pilipinas (BSP)
skepticism throughout the audit. We also: Circular No. 1074 and Revenue Regulations 15‑2010
• Identify and assess the risks of material misstatement of the financial statements, whether due Our audits were conducted for the purpose of forming an opinion on the basic financial statements
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit taken as a whole. The supplementary information required under BSP Circular No. 1074 in Note 32
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not and Revenue Regulations 15‑2010 in Note 33 to the financial statements is presented for purposes of
detecting a material misstatement resulting from fraud is higher than for one resulting from error, filing with the BSP and Bureau of Internal Revenue, respectively, and is not a required part of the basic
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of financial statements. Such information is the responsibility of the management of Maybank Philippines,
internal control. Incorporated. 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
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures relation to the basic financial statements taken as a whole.
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Bank’s internal control.
SYCIP GORRES VELAYO & CO.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events Ray Francis C. Balagtas
or conditions that may cast significant doubt on the Bank’s ability to continue as a going concern. Partner
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s CPA Certificate No. 108795
report to the related disclosures in the financial statements or, if such disclosures are inadequate, to Tax Identification No. 216-950-288
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our BOA/PRC Reg. No. 0001, August 25, 2021, valid until April 15, 2024
auditor’s report. However, future events or conditions may cause the Bank to cease to continue as a SEC Partner Accreditation No. 108795-SEC (Group A)
going concern. Valid to cover audit of 2021 to 2025 financial statements of SEC covered institutions
SEC Firm Accreditation No. 0001-SEC (Group A)
• Evaluate the overall presentation, structure and content of the financial statements, including the Valid to cover audit of 2021 to 2025 financial statements of SEC covered institutions
disclosures, and whether the financial statements represent the underlying transactions and events BIR Accreditation No. 08-001998-107-2020, November 27, 2020, valid until November 26, 2023
in a manner that achieves fair presentation. PTR No. 8853467, January 3, 2022, Makati City
We communicate with those charged with governance regarding, among other matters, the planned April 13, 2022
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.


Statements of Financial Position
December 31 December 31
2021 2020 2021 2020
ASSETS EQUITY
Cash and Other Cash Items P1,757,511,280 P1,318,048,371 Preferred Stock (Note 19) 232,539,724 232,539,724
Due from Bangko Sentral ng Pilipinas (Note 13) 16,670,508,819 11,740,621,685 Common Stock (Note 19) 10,313,344,184 10,313,344,184
Due from Other Banks (Note 28) 2,313,027,681 4,080,554,878 Cost of Share-based Payments (Note 19) 262,761,718 262,761,718
Interbank Loans Receivable and Securities Purchased Surplus Reserve (Note 19) 63,186,832 59,618,552
under Resale Agreements 6,270,065,184 946,563,080 Surplus 2,089,137,897 1,703,117,171
Financial Assets at Fair Value Through Profit or Loss Net Unrealized Gains (Losses) on Financial Assets at Fair
(Notes 6 and 17) 4,232,955,397 3,788,118,609 Value Through Other Comprehensive Income (Note 7) (50,334,260) 105,387,149
Financial Assets at Fair Value Through Other Remeasurement Losses on Retirement Plan (Note 20) (79,699,772) (76,766,794)
Comprehensive Income (Note 7) 8,596,991,140 7,826,212,365 Cumulative Translation Adjustment 7,258,535 (3,840,440)
Investment Securities at Amortized Cost (Note 8) 10,442,445,542 8,643,768,228 Treasury Shares (Note 19) (383,605) (383,605)
Loans and Receivables (Note 9) 48,100,950,850 58,566,785,723 12,837,811,253 12,595,777,659
Property and Equipment (Note 10) 245,946,922 276,233,399 TOTAL LIABILITIES AND EQUITY P102,428,894,132 P101,161,762,643
Right-of-Use Assets (Note 24) 567,135,113 589,928,379
Investment Properties (Note 11) 1,163,016,303 1,093,826,992
Deferred Tax Assets (Note 25) 1,413,624,970 1,530,014,203 See accompanying Notes to Financial Statements.
Other Assets (Note 12) 654,714,931 761,086,731
TOTAL ASSETS P102,428,894,132 P101,161,762,643
LIABILITIES AND EQUITY

LIABILITIES
Deposit Liabilities (Notes 13 and 28)
Demand P26,990,507,379 P25,751,394,611
Savings 22,404,961,178 24,152,905,334
Time 22,384,636,615 30,632,736,132
71,780,105,172 80,537,036,077
Bills Payable (Notes 14 and 28) 11,372,777,000 2,209,058,000
Subordinated Debt (Note 28) 1,993,568,187 1,992,648,990
Accrued Interest, Taxes and Other Expenses (Note 15) 1,290,991,755 1,095,884,900
Lease Liabilities (Note 24) 717,848,794 752,327,010
Financial Liabilities at Fair Value through Profit or Loss
(Notes 17 and 28) 219,594,198 164,574,417
Manager’s Checks 501,201,983 375,475,955
Income Tax Payable 1,328,705 4,825,636
Other Liabilities (Note 16) 1,713,667,085 1,434,153,999
89,591,082,879 88,565,984,984
Statements of Income
Years Ended December 31 Years Ended December 31

2021 2020 2021 2020
INTEREST INCOME ON OTHER EXPENSES AND CHARGES

Loans and receivables (Notes 9 and 28) P4,288,610,229 P5,251,053,808 Compensation and fringe benefits (Notes 20 and 28) 1,688,917,428 1,634,801,007
Financial investments (Notes 6, 7, 8 and 17) 682,961,997 991,952,648 Taxes and licenses 619,840,706 725,086,716
Due from Bangko Sentral ng Pilipinas and other banks 86,388,132 63,291,212 Provision for impairment and credit losses
Interbank loans receivable and securities purchased (Notes 7, 8, 9, 11, 12 and 16) 418,593,218 2,789,763,656
under resale agreements 58,853,957 50,683,986 Depreciation and amortization (Notes 10, 11, 12 and 24) 393,903,348 429,683,543
5,116,814,315 6,356,981,654 Information and technology 248,077,576 229,926,342
INTEREST EXPENSE ON Litigation and asset acquired (Note 11) 191,973,943 121,972,140
Deposit liabilities (Notes 13 and 28) 773,679,468 1,495,508,001 Insurance 185,842,036 191,048,447
Bills payable and other borrowings (Notes 14 and 28) 133,542,430 191,804,702 Security, messengerial and janitorial 138,771,610 156,059,535
Financial liabilities at fair value through Occupancy (Note 24) 135,418,225 117,818,465
profit or loss (Note 17 and 28) 9,667,611 5,612,893 Management and other professional fees 85,392,869 19,183,625
Lease liabilities (Note 24) 58,383,737 66,003,500 Postage, telephone and telegrams 45,538,214 38,237,035
975,273,246 1,758,929,096 Stationery and supplies used 26,405,974 22,767,230
NET INTEREST INCOME 4,141,541,069 4,598,052,558 Traveling 8,542,120 12,722,824
OTHER INCOME AND CHARGES Entertainment, amusement and recreation 198,372 686,257
Service charges, fees and commissions (Notes 22 and 28) 922,425,222 408,129,318 Miscellaneous (Note 23) 520,968,633 501,069,003
Loss on sale of properties (43,024,962) (133,817,810) TOTAL OPERATING EXPENSES 4,708,384,272 6,990,825,825
Net trading gains (Note 21) 546,703,110 127,378,125 INCOME (LOSS) BEFORE INCOME TAX 724,374,959 (1,811,111,648)
Foreign exchange gains (losses) – net (362,779,659) 47,888,141 PROVISION FOR (BENEFIT FROM) INCOME TAX (Note 25) 334,785,953 (368,326,619)
Gain on foreclosures 92,362,239 38,971,674 NET INCOME (LOSS) P389,589,006 (P1,442,785,029)
Miscellaneous (Note 23) 135,532,212 93,112,171
TOTAL OPERATING INCOME 5,432,759,231 5,179,714,177
See accompanying Notes to Financial Statements.


Statements of Comprehensive Income
Years Ended December 31

2021 2020
NET INCOME (LOSS) P389,589,006 (P1,442,785,029)
OTHER COMPREHENSIVE INCOME (LOSS)
Items that may be reclassified to profit or loss in subsequent periods:
Net change in unrealized gains (losses) on financial assets at fair value through other comprehensive income (Note 7) (212,874,299) 120,651,841
Tax effect 57,152,890 (37,521,935)
Cumulative translation adjustment 11,098,975 8,662,028
Item that will not be reclassified to profit or loss in subsequent periods:
Remeasurement gains on retirement plan (Note 20) 3,400,486 30,237,073
Tax effect (6,333,464) (9,071,122)
OTHER COMPREHENSIVE INCOME FOR THE YEAR (147,555,412) 112,957,885
TOTAL COMPREHENSIVE INCOME (LOSS) P242,033,594 (P1,329,827,144)

Statements of Changes in Equity
Net Unrealized
Gains (Losses) on
Remeasurement
Cost of Financial Assets
Preferred Stock Common Surplus Losses on Cumulative Treasury
Share-Based at Fair Value
(Note 19) Stock Reserve Retirement Translation Shares
Payment Through Other
Plan
Comprehensive
Income
“A” “B” “C” Subtotal (Note 19) (Note 7) (Note 20) Surplus (Note 7) (Note 20) Adjustment (Note 19) Total
Balances at January 1, 2021 P4,440,000 P8,880,000 P219,219,724 P232,539,724 P10,313,344,184 P262,761,718 P59,618,552 P1,703,117,171 P105,387,149 (P76,766,794) (P3,840,440) (P383,605) P12,595,777,659
Net income – – – – – – – 389,589,006 − − – – 389,589,006
Other comprehensive income (loss) – – – – – – – – (155,721,409) (2,932,978) 11,098,975 – (147,555,412)
Total comprehensive income (loss) – – – – – – – 389,589,006 (155,721,409) (2,932,978) 11,098,975 – 242,033,594
Transfer to surplus reserve – – – – – – 3,568,280 (3,568,280) – – – – −
Balances at December 31, 2021 P4,440,000 P8,880,000 P219,219,724 P232,539,724 P10,313,344,184 P262,761,718 P63,186,832 P2,089,137,897 (P50,334,260) (P79,699,772) P7,258,535 (P383,605) P12,837,811,253
Balances at January 1, 2020 P4,440,000 P8,880,000 P219,219,724 P232,539,724 P10,313,344,184 P262,761,718 P56,817,291 P3,148,703,461 P22,257,243 (P97,932,745) (P12,502,468) (P383,605) P13,925,604,803
Net loss – – – – – – – (1,442,785,029) − − – – (1,442,785,029)
Other comprehensive income – – – – – – – – 83,129,906 21,165,951 8,662,028 – 112,957,885
Total comprehensive income (loss) – – – – – – – (1,442,785,029) 83,129,906 21,165,951 8,662,028 – (1,329,827,144)
Transfer to surplus reserve – – – – – – 2,801,261 (2,801,261) – – – – −
Balances at December 31, 2020 P4,440,000 P8,880,000 P219,219,724 P232,539,724 P10,313,344,184 P262,761,718 P59,618,552 P1,703,117,171 P105,387,149 (P76,766,794) (P3,840,440) (P383,605) P12,595,777,659


Statements of Cash Flows
Years Ended December 31 Years Ended December 31

2021 2020 2021 2020
CASH FLOWS FROM INVESTING ACTIVITIES
CASH FLOWS FROM OPERATING ACTIVITIES Acquisitions of:
Income (loss) before income tax P724,374,959 (P1,811,111,648) Financial assets at FVOCI (46,722,785,707) (7,726,054,273)
Adjustments for: Financial assets at amortized cost (17,383,790,668) (11,322,184,000)
Net loss (gain) on sale of: Property and equipment (Note 10) (52,915,356) (94,160,799)
Investment properties and other Software costs (Note 12) (39,177,692) (14,389,118)
properties acquired 44,246,308 133,819,754 Proceeds from:
Property and equipment (1,221,346) (1,944) Sale and maturities of financial assets at FVOCI 45,851,518,110 2,972,705,083
Depreciation and amortization Maturities of financial assets at amortized cost 15,561,901,655 14,209,537,600
(Notes 10, 11, 12 and 24) 393,903,348 429,683,543 Disposals of property and equipment (Note 10) 4,114,614 1,795,216
Provision for impairment and Disposals of investment properties and other
credit losses (Notes 9,11 and 12) 419,412,718 2,789,763,656 properties acquired (Notes 11 and 12) 1,085,570,242 547,683,861
Amortization of premium/discount (42,894,751) (27,040,976) Net cash used in investing activities (1,695,564,802) (1,425,066,430)
Gain on foreclosure of investment CASH FLOWS FROM FINANCING ACTIVITIES
properties and other properties acquired (92,362,239) (38,971,674) Net availment/(settlement) of bills payable (Note 30) P9,163,719,000 (P6,702,702,000)
Unrealized trading loss (gain) (Note 6) (592,072,522) 142,943,836 Payment for principal portion of lease liabilities (Note 24) (188,112,156) (218,969,761)
Retirement expense (Note 20) 88,880,537 93,679,844 Net cash provided by (used in) financing activities 8,975,606,844 (6,921,671,761)
Interest expense on lease contracts (Note 24) 58,383,737 66,003,500 CUMULATIVE TRANSLATION ADJUSTMENT 11,098,975 8,662,028
Realized trading loss (gain) on sale of NET INCREASE IN CASH AND CASH EQUIVALENTS 8,925,324,950 3,303,760,988
financial assets at FVOCI investments (Note 21) 1,240 (57,582,083) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
Changes in operating assets and liabilities: Cash and other cash items 1,318,048,371 1,525,384,334
Decrease (increase) in the amounts of: Due from Bangko Sentral ng Pilipinas (BSP) 11,740,621,685 9,767,154,508
Financial assets at fair value Due from other banks 4,080,554,878 3,489,488,184
through profit or loss 147,235,734 (3,563,889,086) Interbank loans receivable and SPURA 946,563,080 -
Loans and receivables 8,916,358,729 9,607,692,735 18,085,788,014 14,782,027,026
Other assets (8,126,760) (37,999,305) CASH AND CASH EQUIVALENTS AT END OF YEAR
Increase (decrease) in the amounts of: Cash and other cash items 1,757,511,280 1,318,048,371
Deposit liabilities (8,756,930,905) 4,656,231,792 Due from BSP 16,670,508,819 11,740,621,685
Financial liabilities at fair value Due from other banks 2,313,027,681 4,080,554,878
through profit or loss 55,019,781 (123,595,782) Interbank loans receivable and SPURA 6,270,065,184 946,563,080
Accrued interest, taxes and other expenses 195,106,855 (89,885,485) P27,011,112,964 P18,085,788,014
Manager’s checks and outstanding acceptances 125,726,028 (338,603,782)
Other liabilities 294,203,369 162,376,412 OPERATIONAL CASH FLOWS FROM INTEREST
Net cash provided by operations 1,969,244,820 11,993,513,307 Interest received P5,741,009,734 P5,380,431,649
Retirement contribution (Note 20) (90,112,129) (94,692,903) Interest paid 1,004,553,150 1,997,801,888
Income taxes paid (244,948,758) (256,983,253)
Net cash provided by (used in) operating activities 1,634,183,933 11,641,837,151 See accompanying Notes to Financial Statements.
Notes to Financial Statements
Amounts are presented to the nearest PHP unless otherwise stated.

1. Corporate Information
Statement of Compliance
Maybank Philippines, Incorporated (the Bank) is a commercial bank incorporated in the Philippines The financial statements of the Bank have been prepared in compliance with Philippine Financial
on January 3, 1953 to provide banking services such as deposit products, loans and trade finance, Reporting Standards (PFRSs).
domestic and foreign fund transfers, treasury, foreign exchange and trust services through its
63 and 65 branches as of December 31, 2021 and 2020, respectively. Presentation of Financial Statements
The Bank presents its statement of financial position broadly in order of liquidity. An analysis
On October 12, 1999, the Securities and Exchange Commission (SEC) approved the extension of the regarding recovery (asset) or settlement (liability) within 12 months after the reporting date
corporate term of the Bank for another 50 years. The Bank is 99.97% owned by Malayan Banking (current) and more than 12 months after the reporting date (non-current) is presented in Note 18.
Berhad (the Parent Company) incorporated in Malaysia.
Financial assets and financial liabilities are offset and the net amount reported in the statements
The Bank’s principal and registered place of business is Maybank Corporate Centre, 7th Avenue of financial position only when there is a legally enforceable right to offset the recognized amounts
corner 28th Street, Bonifacio Global City, Taguig City. and there is an intention to settle on a net basis, or to realize the assets and settle the liability
simultaneously. The Bank assesses that they have currently enforceable right of offset if the right is
COVID-19 outbreak not contingent on a future event, and is legally enforceable in the normal course of business, event
The COVID-19 pandemic has affected the Bank financially and operationally. Government of default, and event of insolvency or bankruptcy of the Bank or its counterparties.
restrictions aimed to curb the spread of virus have caused an adverse effect on economy and
financial institutions. Income and expenses are not offset in the statement of income unless required or permitted by any
accounting standard or interpretation, and as specifically disclosed in the accounting policies of the Bank.
The Bank developed the Crisis Management Team to provide direction and guidance in sustaining
operations of the Bank while managing and exerting effort to reduce exposure to COVID-19. Some Changes in Accounting Policies and Disclosures
measures in place include team rotation work schedules, work from home arrangements, IT security The Bank applied for the first-time certain pronouncements, which are effective for annual periods
enhancements, mandatory health and safety measures, and case management protocols which beginning on or after January 1, 2021. Adoption of these pronouncements did not have a significant
are included in the Bank’s Work Management Plan. The Bank also developed a back-to-work plan impact on the Bank’s financial position or performance, unless otherwise indicated.
suited for the quarantine classification declared by the Government. The plan is continuously
reviewed and enhanced to optimize office spaces and implement necessary COVID-19 control • Amendments to PFRS 16, COVID-19-related Rent Concessions
measures for staff and clients.
The amendments provide relief to lessees from applying the PFRS 16 requirement on lease
The situation surrounding COVID-19 remains fluid and the potential for a negative impact on the modifications to rent concessions arising as a direct consequence of the COVID-19 pandemic.
Bank increases as the virus continues to impact the economic activity globally. A lessee may elect not to assess whether a rent concession from a lessor is a lease modification
if it meets all of the following criteria:
2. Summary of Significant Accounting Policies
• The rent concession is a direct consequence of COVID-19;
Basis of Preparation • The change in lease payments results in a revised lease consideration that is
The accompanying financial statements have been prepared on a historical cost basis except for substantially the same as, or less than, the lease consideration immediately preceding
financial instruments at fair value through profit or loss (FVTPL) and financial assets at fair value the change;
through other comprehensive income (FVOCI) that have been measured at fair value. • Any reduction in lease payments affects only payments originally due on or before
June 30, 2022; and
The financial statements of the Bank reflect the accounts maintained in the Regular Banking Unit • There is no substantive change to other terms and conditions of the lease.
(RBU) and Foreign Currency Deposit Unit (FCDU).
A lessee that applies this practical expedient will account for any change in lease payments
The functional currency of the RBU and FCDU is Philippine peso (PHP) and United States dollar resulting from the COVID-19 related rent concession in the same way it would account for a
(US$), respectively. For financial reporting purposes, FCDU accounts and foreign change that is not a lease modification, i.e., as a variable lease payment.
currency-denominated accounts in the RBU are translated into their equivalents in PHP.
The financial statements of these units are combined after eliminating inter-unit accounts. The amendments are effective for annual reporting periods beginning on or after April 1, 2021.
Early adoption is permitted.

• Amendments to PFRS 9, PAS 39, PFRS 7, PFRS 4 and PFRS 16, Interest Rate Benchmark Reform • in the principal market for the asset or liability, or
– Phase 2 • in the absence of a principal market, in the most advantageous market for the asset or liability.
The amendments provide the following temporary reliefs which address the financial reporting The principal or the most advantageous market must be accessible to the Bank. The fair value of
effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free an asset or a liability is measured using the assumptions that market participants would use when
interest rate (RFR): pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to
• Practical expedient for changes in the basis for determining the contractual cash flows as generate economic benefits by using the asset in its highest and best use or by selling it to another
a result of IBOR reform market participant that would use the asset in its highest and best use.
• Relief from discontinuing hedging relationships
• Relief from the separately identifiable requirement when an RFR instrument is The Bank uses valuation techniques that are appropriate in the circumstances and for which
designated as a hedge of a risk component sufficient data are available to measure fair value, maximizing the use of relevant observable inputs
and minimizing the use of unobservable inputs.
Significant Accounting Policies
All assets and liabilities for which fair value is measured or disclosed in the financial statements are
Foreign Currency Translation categorized within the fair value hierarchy, described as follows, based on the lowest level input that
is significant to the fair value measurement as a whole:
Transactions and balances
The books of accounts of the RBU are maintained in PHP, those of the FCDU are maintained in • Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
US$. For financial reporting purposes, the foreign currency-denominated accounts in the RBU are • Level 2 – Valuation techniques for which the lowest level input that is significant to the fair
translated into their equivalents in PHP based on the Bankers Association of the Philippines (BAP) value measurement is directly or indirectly observable.
closing rate prevailing at the end of the year (for assets and liabilities) and at the exchange rates • Level 3 – Valuation techniques for which the lowest level input that is significant to the fair
prevailing at transaction dates (for income and expenses). Foreign exchange differences arising value measurement is unobservable.
from foreign currency translation and revaluation of foreign currency-denominated assets and
liabilities in the RBU, except for nonmonetary assets, are credited to or charged against operations For assets and liabilities that are recognized in the financial statements on a recurring basis, the
in the year in which the rates change. Bank determines whether transfers have occurred between Levels in the hierarchy by re-assessing
categorization (based on the lowest level input that is significant to the fair value measurement as a
Non-monetary items that are measured in terms of historical cost in a foreign currency are whole) at the end of each reporting period.
translated using the exchange rates as at the dates of the initial transactions. Non-monetary items
measured at fair value in a foreign currency are translated using the exchange rates at the date when Cash and Cash Equivalents
the fair value was determined. For purposes of reporting cash flows, cash and cash equivalents include cash and other cash items
(COCI), foreign currency notes and coins, petty cash fund, due from BSP and other banks, interbank
FCDU loans receivable and securities purchased under resale agreements (SPURA) with the BSP that are
As at the reporting date, the assets and liabilities of the FCDU are translated into the Bank’s convertible to known amounts of cash with original maturities of three months or less from dates of
presentation currency at the BAP closing rate prevailing at the reporting date, and its income and placements and that are subject to an insignificant risk of changes in value.
expenses are translated at the exchange rates prevailing at transaction dates. Exchange differences
arising on translation are taken directly to other comprehensive income (OCI) under ‘Cumulative Due from BSP includes the statutory reserves required by the BSP which the Bank considers as cash
translation adjustment’ in the statement of comprehensive income. equivalents wherein withdrawals can be made to meet the Bank’s cash requirements as allowed by
the BSP.
Fair Value Measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in Financial Instruments – Initial Recognition and Subsequent Measurement
an orderly transaction between market participants at the measurement date. The fair value Financial instruments are any contracts that give rise to a financial asset of one entity and a
measurement is based on the presumption that the transaction to sell the asset or transfer the financial liability or equity instrument of another entity. The Bank recognizes a financial asset
liability takes place either: or financial liability in the statement of financial position when the Bank becomes a party to the
contractual provisions of the instrument.
Date of recognition The most significant elements of interest within a lending arrangement are typically the
Regular way purchases and sales of financial assets that require delivery of assets within the time consideration for the time value of money and credit risk. To make the SPPI assessment, The Bank
frame established by regulation or convention in the marketplace are recognized on settlement applies judgement and considers relevant factors such as the currency in which the financial assets
date. Settlement date accounting refers to (a) the recognition of an asset on the day it is received is denominated, and the period for which the interest rate is set.
by the Bank, and (b) the derecognition of an asset and recognition of any gain or loss on disposal
on the day that it is delivered by the Bank. Any change in fair value of financial asset is recognized In contrast, contractual terms that introduce a more than de minimis exposure to risk or volatility
in the statement of income for financial assets at FVPL and in OCI for assets classified as FVOCI in the contractual cash flows that are unrelated to a basic lending arrangement do not give rise to
investments. Deposits, amounts due to banks and customers and loans and receivables are contractual cash flows that are SPPI on the amount outstanding. In such cases, the financial asset is
recognized when cash is received by the Bank or advanced to the borrowers. required to be measured at FVPL.
All financial assets and financial liabilities are recognized initially at fair value plus, in the case of financial Business model assessment
assets and financial liabilities not at FVPL, any directly attributable cost of acquisition or issue. The Bank determines its business model at the level that best reflects how it manages groups of
financial assets to achieve its business objective.
‘Day 1’ difference
Where the transaction price in a non-active market is different from the fair value based on other The Bank’s business model is not assessed on an instrument-by-instrument basis, but at a higher
observable current market transactions in the same instrument or based on a valuation technique level of aggregated portfolios and is based on observable factors such as:
whose variables include only data from observable market, the Bank recognizes the difference
between the transaction price and the fair value (a ‘Day 1’difference) in the statement of income. • How the performance of the business model and the financial assets held within that business
In cases where transaction price used is made of data which is not observable, the difference model are evaluated and reported to the entity’s key management personnel
between the transaction price and model value is only recognized in the statement of income when • The risks that affect the performance of the business model (and the financial assets held
the inputs become observable or when the instrument is derecognized. For each transaction, within that business model) and, in particular, the way those risks are managed
the Bank determines the appropriate method of recognizing the ‘Day 1’ difference amount. • How managers of the business are compensated (for example, whether the compensation is
based on the fair value of the assets managed or on the contractual cash flows collected)
Classification of financial instruments • The expected frequency, value and timing of sales are also important aspects of the Bank’s
The Bank classifies its financial assets in the following categories: financial assets at FVTPL, assessment
financial assets at amortized cost, financial assets classified under FVOCI. The classification and
measurement of financial instruments is driven by the financial asset’s contractual cash flow The business model assessment is based on reasonably expected scenarios without taking ‘worst
characteristics and the Bank’s business model for managing them. The Bank’s business model for case’ or ‘stress case’ scenarios into account. If cash flows after initial recognition are realized
managing financial assets refers to how it manages its financial assets in order to generate cash in a way that is different from the Bank’s original expectations, the Bank does not change the
flow. The business model determines whether cash flows will result from collecting contractual classification of the remaining financial assets held in that business model, but incorporates such
cash flows, selling the financial assets, or both. The Bank determines its business model at the level information when assessing newly originated or newly purchased financial assets going forward.
that best reflects how it manages groups of financial assets to achieve its business objective. The
Bank’s business model is not assessed on an instrument-by-instrument basis, but at a higher level of The Bank’s measurement categories are described below:
aggregated portfolios.
Financial assets at FVPL
Financial liabilities are categorized into financial liabilities at FVPL and other financial liabilities carried Debt instruments that do not meet the amortized cost or FVOCI criteria, or that meet the criteria,
at amortized cost. Management determines the classification of its investments at initial recognition but the Bank has chosen to designate as at FVPL at initial recognition, are measured at fair value
and, where allowed and appropriate, re-evaluates such designation at every reporting date. through profit or loss.
Solely Payments of Principal and Interest (SPPI) test Investments in equity instruments are classified as at FVTPL, unless the Bank designates an equity
The Bank assesses the contractual terms of financial assets to identify whether they pass the instrument that is not held for trading as at FVOCI at initial recognition.
contractual cash flows test or SPPI test.
The Bank’s financial assets at FVTPL include derivative instruments and government securities
‘Principal’ for the purpose of this test is defined as the fair value of the financial asset at initial where the fair value option at initial recognition is applied.
recognition and may change over the life of the financial asset (for example, if there are repayments
of principal or amortization of the premium/discount).

Financial assets at FVPL are carried at fair value, with net changes in fair value recognized as ‘Net in ‘Net unrealized gains (losses) on financial assets at FVOCI’ in the statement of financial position.
trading gains’ in the statement of income. Interest earned on these investments is reported as When the asset is disposed of, the cumulative gain or loss previously recognized in ‘Net change in
‘Interest income’ in the statement of income. unrealized gains (losses) on financial assets at FVOCI’ is not reclassified to the statement of income,
but is reclassified to ‘Surplus’.
Derivative instruments
A derivative is a financial instrument or other contract with all three of the following characteristics: Dividends earned on these investments in equity instruments are recognized in the statement of
income when the Bank’s right to receive the dividends is established in accordance with PFRS 9,
• Its value changes in response to the change in a specified interest rate, financial instrument unless the dividends clearly represent recovery of a part of the cost of the investment. Dividends
price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit earned are recognized in the statement of income, under ‘Miscellaneous income’.
index, or other variable, provided that, in the case of a non-financial variable, it is not specific
to a party to the contract (i.e., the ‘underlying’). Financial assets at amortized cost
• It requires no initial net investment or an initial net investment that is smaller than would be This accounting policy relates to ‘Due from BSP’, ‘Due from other banks’, ‘Interbank loans receivable
required for other types of contracts expected to have a similar response to changes in market and securities purchased under resale agreements’, ‘Loans and receivables’ and financial
factors. investments under ‘Investment securities at amortized cost’.
• It is settled at a future date.
Financial assets are measured at amortized cost if both of the following conditions are met:
The Bank enters into derivative transactions with various counterparties. These includes interest
rate swaps, foreign exchange swaps and forward foreign exchange contract. Derivatives are • the asset is held within the Bank’s business model of “Hold” and are managed to realize cash
recorded at fair value and carried as assets when their fair value is positive and as liabilities when flows by collecting contractual payments over the life of the instrument.
their fair value is negative. • the contractual terms of the instrument give rise, on specified dates, to cash flows that are
SPPI on the principal amount outstanding.
The Bank’s derivative assets and derivatives are presented as ‘Financial assets at FVPL’ and
‘Financial liabilities at FVPL’, respectively, in the statement of financial position. Financial assets meeting these criteria are measured initially at fair value plus transaction costs.
They are subsequently measured at amortized cost using the effective interest method, less any
Financial assets at FVOCI – Debt investments impairment in value. The amortization is included in ‘Interest income’ in the statement of income.
The Bank applies this category when both the following conditions are met: Gains or losses are recognized in statement of income when these investments are derecognized
or impaired, as well as through the amortization process. The ECL are recognized in the statement
• The instrument is held within a business model, the objective of which is achieved by both of income under provision for impairment and credit losses: The effects of revaluation or foreign
collecting contractual cash flows and selling financial assets; and currency-denominated investments are recognized in the statement of income. Gains or losses
• The contractual terms of the financial asset meet the SPPI test. arising from disposals of these instruments are included in ‘Gains (losses) on disposal of investment
securities at amortized cost’ in the statement of income.
Subsequently, these are measured at fair value with gains or losses arising due to changes in fair
value recognized in OCI under ‘Net change in unrealized gains (losses) on financial assets at FVOCI’. The Bank may irrevocably elect at initial recognition to classify a financial asset that meets the
Interest income and foreign exchange gains and losses are recognized in the statement of income amortized cost criteria above as at FVPL if that designation eliminates or significantly reduces an
in the same manner as for financial assets measured at amortized cost. When the Bank holds more accounting mismatch had the financial asset been measured at amortized cost.
than one investment in the same security, these are deemed to be disposed of on a first-in, first-out
basis. On derecognition, cumulative gains or losses recognized in OCI are reclassified from OCI to Reclassification of financial instruments
the statement of income. The Bank can only reclassify financial assets if the objective of its business model for managing
those financial assets changes. Accordingly, the Bank is required to reclassify financial assets:
Financial assets at FVOCI – Equity investments (i) from amortized cost to FVPL, if the objective of the business model changes so that the amortized
At initial recognition, the Bank can make an irrevocable election (on an instrument-by-instrument cost criteria are no longer met; (ii) from FVPL to amortized cost or FVOCI, if the objective of the
basis) to designate equity instruments at FVOCI. Designation at FVOCI is not permitted if the business model changes so that the amortized cost or FVOCI criteria start to be met and the
investment in equity instrument is held for trading. characteristic of the instrument’s contractual cash flows are SPPI; and, (iii) from amortized cost
to FVOCI if the business model changes so that the objective becomes both to collect contractual
Investments in equity instruments at FVOCI are initially measured at fair value plus transaction cash flows and to sell or from FVOCI to amortized cost if the business model becomes solely for the
costs. Subsequently, these are measured at fair value, with no deduction for sale or disposal collection of contractual cash flows.
costs. Gains and losses arising from changes in fair value are recognized in OCI and accumulated
Reclassification of financial assets designated as at FVTPL or equity financial assets at FVOCI at Derecognition of Financial Assets and Financial Liabilities
initial recognition is not permitted.
Financial assets
Financial liabilities A financial asset (or, where applicable a part of a financial asset or part of a group of financial assets)
Financial liabilities are measured at amortized cost or at FVTPL when they are held for trading and is derecognized when:
derivative instruments or the fair value designation is applied.
• the rights to receive cash flows from the asset have expired; or
Issued financial instruments or their components, which are not designated at FVPL, are classified • the Bank retains the right to receive cash flows from the asset, but has assumed an
under ‘Deposit liabilities’, ‘Bills payable’, ‘Subordinated debt’ and ‘Accrued interest, taxes and other obligation to pay them in full without material delay to a third party under a “pass-through”
expenses’, ‘Manager’s checks’ and ‘Other liabilities’ or other appropriate financial liability accounts arrangement; or
where the substance of the contractual arrangement results in the Bank having an obligation either • the Bank has transferred its rights to receive cash flows from the asset and either (a) has
to deliver cash or another financial assets to the holder, or to satisfy the obligation other than by the transferred substantially all the risks and rewards of the asset, or (b) has neither transferred
exchange of fixed amount of cash or another financial asset. The components of issued financial nor retained the risks and rewards of the asset but has transferred control of the asset.
instruments that contain both liability and equity elements are accounted for separately, with the
equity component being assigned the residual amount after deducting from the instrument as a whole Where the Bank has transferred its rights to receive cash flows from an asset or has entered into a
the amount separately determined as the fair value of the liability component at the date of issue. pass-through arrangement, and has neither transferred nor retained substantially all the risks and
rewards of the asset nor transferred control of the asset, the asset is recognized to the extent of
Impairment of Financial Assets the Bank’s continuing involvement in the asset. Continuing involvement that takes the form of a
The Bank recognizes allowance for expected credit losses for all debt financial assets except those guarantee over the transferred asset is measured at the lower of the original carrying amount of the
measured at FVPL, together with loan commitments and financial guarantee contracts. Equity asset and the maximum amount of consideration that the Bank could be required to repay.
instruments are not subject to impairment.
Modification of financial assets
Staging assessment The Bank derecognizes a financial asset when the terms and conditions have been renegotiated
The Bank has established a policy to perform an assessment, at the end of each reporting period, to the extent that, substantially, it becomes a new asset, with the difference between its carrying
of whether a financial instrument’s credit risk has increased significantly since initial recognition, amount and the fair value of the new asset recognized as a derecognition gain or loss in profit or
by considering the change in the risk of default occurring over the remaining life of the financial loss, to the extent that an impairment loss has not already been recorded.
instrument.
The Bank considers both qualitative and quantitative factors in assessing whether a modification of
For non-credit-impaired financial instruments: financial asset is substantial or not. When assessing whether a modification is substantial, the Bank
• Stage 1 is comprised of all non-impaired financial instruments which have not experienced considers the following factors, among others:
a SICR since initial recognition. The Bank recognizes a 12-month ECL for Stage 1 financial • Change in currency
instruments. • Introduction of an equity feature
• Stage 2 is comprised of all non-impaired financial instruments which have experienced SICR • Change in counterparty
since initial recognition. The Bank recognizes lifetime ECL for Stage 2 financial instruments. • If the modification results in the asset no longer considered SPPI
For credit-impaired financial instruments: The Bank also performs a quantitative assessment similar to that being performed for modification
• Financial instruments are classified as Stage 3 when there is objective evidence of impairment of financial liabilities. In performing the quantitative assessment, the Bank considers the new terms
as a result of one or more loss events that have occurred after initial recognition with a of a financial asset to be substantially different if the present value of the cash flows under the new
negative impact on the estimated future cash flows of a loan or a portfolio of loans. The ECL terms, including any fees paid net of any fees received and discounted using the original effective
model requires that lifetime ECL be recognized for impaired financial instruments. interest rate, is at least 10% different from the present value of the remaining cash flows of the
original financial asset.
Refer to Note 4 for the discussion of the Bank’s expected credit loss models.
When the contractual cash flows of a financial asset are renegotiated or otherwise modified and
the renegotiation or modification does not result in the derecognition of that financial asset, the
Bank recalculates the gross carrying amount of the financial asset as the present value of the

renegotiated or modified contractual cash flows discounted at the original EIR (or credit-adjusted If modification of terms is accounted for as an extinguishment, any costs or fees incurred are
EIR for purchased or originated credit-impaired financial assets) and recognizes a modification gain recognized as part of the gain or loss on the extinguishment. If the modification is not accounted
or loss in the statement of income. for as an extinguishment, any costs or fees incurred adjust the carrying amount of the financial
instrument and are amortized over the remaining term of the modified financial instrument.
When the modification of a financial asset results in the derecognition of the existing financial
asset and the subsequent recognition of a new financial asset, the modified asset is considered a Repurchase and reverse repurchase agreements
'new' financial asset. Accordingly, the date of the modification shall be treated as the date of initial Securities sold under agreements to repurchase at a specified future date (‘repos’) are not
recognition of that financial asset when applying the impairment requirements to the modified derecognized from the statement of financial position. The corresponding cash received, including
financial asset. The newly recognized financial asset is classified as Stage 1 for ECL measurement accrued interest, is recognized in the statement of financial position as a loan to the Bank, reflecting
purposes, unless the new financial asset is deemed to be originated as credit impaired (POCI). the economic substance of such transaction.
Financial liabilities Conversely, securities purchased under agreements to resell at a specified future date (‘reverse
A financial liability is derecognized when the obligation under the liability is discharged, cancelled repos’) are not recognized in the statement of financial position. The Bank is not permitted to sell or
or has expired. Where an existing financial liability is replaced by another from the same lender on repledge the securities in the absence of default by the owner of the collateral. The corresponding
substantially different terms, or the terms of an existing liability are substantially modified, such an cash paid, including accrued interest, is recognized in the statement of financial position as SPURA,
exchange or modification is treated as a derecognition of the original liability and the recognition of and is considered a loan to the counterparty. The difference between the purchase price and
a new liability, and the difference in the respective carrying amounts is recognized in the statement resale price is treated as interest income and is accrued over the life of the agreement using the EIR
of income. amortization method.
Exchange or modification of financial liabilities Write-off

The Bank considers both qualitative and quantitative factors in assessing whether a modification Financial assets are written off either partially or in their entirety when the Bank no longer expects
of financial liabilities is substantial or not. The terms are considered substantially different if collections or recoveries within a foreseeable future. If the amount to be written off is greater than
the present value of the cash flows under the new terms, including any fees paid net of any fees the accumulated loss allowance, the difference is first treated as an addition to the allowance that
received and discounted using the original effective interest rate, is at least 10% different from the is then applied against the gross carrying amount. Any subsequent recoveries are credited to credit
present value of the remaining cash flows of the original financial liability. However, under certain loss expense.
circumstances, modification or exchange of a financial liability may still be considered substantial,
even where the present value of the cash flows under the new terms is less than 10% different Financial liability
from the present value of the remaining cash flows of the original financial liability. There may A financial liability is derecognized when the obligation under the liability is discharged or cancelled,
be situations where the modification of the financial liability is so fundamental that immediate or has expired. When an existing financial liability is replaced by another from the same lender on
derecognition of the original financial liability is appropriate (e.g., restructuring a financial liability substantially different terms, or the terms of an existing liability are substantially modified, such an
to include an embedded equity component). exchange or modification is treated as derecognition of the original liability and the recognition of a new
liability. The difference in the respective carrying amounts is recognized in the statement of income.
When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange Offsetting Financial Instruments
or modification is treated as a derecognition of the original liability and the recognition of a new Financial assets and liabilities are offset and the net amount is reported in the statement of financial
liability. The difference between the carrying value of the original financial liability and the fair value position if, and only if, there is a currently enforceable legal right to set off the recognized amounts
of the new liability is recognized in profit or loss. and there is an intention to settle on a net basis, or to realize the asset and settle the liability
simultaneously. This is not generally the case with master-netting agreements, and the related
When the exchange or modification of the existing financial liability is not considered as substantial, assets and liabilities are presented gross in the statement of financial position.
the Bank recalculates the gross carrying amount of the financial liability as the present value of the
renegotiated or modified contractual cash flows discounted at the original EIR and recognizes a The Bank assesses that it has a currently enforceable right of offset if the right is not contingent on
modification gain or loss in profit or loss. a future event, and if the right is not contingent on a future event, and is legally enforceable in the
normal course of business, event of default, and event of insolvency or bankruptcy of the Bank and
all of the counterparties.
Financial Guarantees and Undrawn Loan Commitments The EUL of property and equipment are as follows:
In the ordinary course of business, the Bank gives financial guarantees consisting of letters of credit,
letters of guarantees, and acceptances. Financial guarantees are initially recognized in the financial Condominium units 50 years
statements at fair value under ‘Other liabilities’. Subsequent to initial recognition, the Bank’s Furniture, fixtures and equipment 5 to 7 years
liabilities under such guarantees are each measured at the higher of the initial fair value less, when Leasehold improvements 5 years or term of the lease, whichever is shorter
appropriate, cumulative amortization calculated to recognize the fee in the statement of income in
‘Service charges, fees and commissions’, over the term of the guarantee, and the best estimate of Construction in progress (CIP) represents furniture, fixtures and equipment and leasehold
the expenditure required to settle any financial obligation arising as a result of the guarantee. improvements under construction or purchased by the Bank but not yet used in operations.
CIP is not depreciated until such time that the relevant assets become completed and ready for use
Any increase in the liability relating to financial guarantees is taken to the statement of income in operations.
in ‘Provision for impairment and credit losses’. Any financial guarantee liability remaining is
recognized in the statement of income in ‘Service charges, fees and commissions’, when the The EUL and the depreciation and amortization method are reviewed periodically to ensure that the
guarantee is discharged, cancelled or has expired. period and the method of depreciation and amortization are consistent with the expected pattern of
economic benefits from items of property and equipment.
Undrawn loan commitments and letters of credit are commitments under which, over the duration
of the commitment, the Bank is required to provide a loan with pre-specified terms to the customer. The carrying values of property and equipment are reviewed for impairment when events or changes
in circumstances indicate the carrying value may not be recoverable. If any such indication exists and
The nominal contractual value of financial guarantees and undrawn loan commitments, where the where the carrying values exceed the estimated recoverable amount, an impairment loss is recognized
loan agreed to be provided is on market terms, is not recorded in the statement of financial position. in the statement of income (see accounting policy on Impairment of Nonfinancial Assets).
These contracts are within the scope of the ECL requirements under PFRS 9 where the Bank An item of property and equipment is derecognized upon disposal or when no future economic
estimates the expected portion of the undrawn loan commitments that will be drawn over their benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset
expected life. The ECL related to financial guarantees and loan commitments without outstanding (calculated as the difference between the net disposal proceeds and the carrying amount of the
drawn amount is recognized in ‘Allowance for credit losses on off-balance sheet exposures’ under asset) is included in the statement of income in the year the asset is derecognized.
‘Other liabilities’.
Investment Properties
Property and Equipment Investment properties are measured initially at cost, including transaction costs. An investment
Depreciable properties, including condominium units, furniture, fixtures and equipment and property acquired through an exchange transaction is measured at the fair value of the asset
leasehold improvements, are stated at cost less accumulated depreciation and amortization, acquired unless the fair value of such an asset cannot be measured, in which case the investment
and any impairment in value. Such cost includes the cost of replacing part of the equipment if the property acquired is measured at the fair value of the asset given up. Foreclosed properties are
recognition criteria are met, but excludes repairs and maintenance cost. classified under ‘Investment properties’ upon:
The initial cost of property and equipment consists of its purchase price, including taxes and any a. entry of judgment in case of judicial foreclosure;
directly attributable costs of bringing the asset to its working condition and location for its intended b. execution of the Sheriff’s Certificate of Sale in case of extra-judicial foreclosure; or
use. Expenditures incurred after the property and equipment have been put into operation, such c. notarization of the Deed of Dacion in case of payment in kind (dacion en pago).
as repairs and maintenance are normally charged against operations in the year in which the costs
are incurred. In situations where it can be clearly demonstrated that the expenditures have resulted The difference between the fair value of the foreclosed properties and the carrying value of the related
in an increase in the future economic benefits expected to be obtained from the use of an item of receivables given up is recognized in ‘Gain or loss on foreclosures’ account in the statement of income.
property and equipment beyond its originally assessed standard of performance, the expenditures
are capitalized as additional costs of property and equipment. Expenditures incurred after the investment properties have been put into operations, such as repairs and
maintenance costs, are normally charged to profit or loss in the year in which the costs are incurred.
Depreciation and amortization are computed using the straight-line method over the estimated
useful life (EUL) of the assets. Subsequent to initial recognition, land is carried at cost less any impairment in value while
depreciable investment properties are carried at cost less accumulated depreciation and any
impairment in value.

Depreciation is calculated on a straight-line basis over 5-10 years. The EUL and the depreciation controlled by the Bank and will generate economic benefits beyond one year, are capitalized.
method are reviewed periodically to ensure that the period and the method of depreciation are Expenditure which enhances or extends the performance of computer software programs beyond their
consistent with the expected pattern of economic benefits from items of investment properties. original specifications is recognized as capital improvements and added to the original cost of the
software. Capitalized computer software costs are amortized on a straight-line basis over four years.
The carrying values of investment properties are reviewed for impairment when events or changes in
circumstances indicate that the carrying value may not be recoverable. If any such indication exists Impairment of Nonfinancial Assets
and where the carrying values exceed the estimated recoverable amount, the assets are written down Property and equipment, Right-of-use assets, Investment properties, Chattel properties acquired and
to their recoverable amounts (see accounting policy on Impairment of Nonfinancial Assets). Software costs
Transfers are made to investment properties when, and only when, there is a change in use At each reporting date, the Bank assesses whether there is any indication that its property and
evidenced by ending of owner occupation, commencement of an operating lease to another party equipment; right-of-use assets, investment properties, chattel properties acquired and software
or ending construction or development. Transfers are made from investment properties when, costs may be impaired. When an indicator of impairment exists or when an annual impairment
and only when, there is a change in use evidenced by commencement of owner occupation or testing for an asset is required, the Bank makes a formal estimate of recoverable amount.
development with a view to sale. Recoverable amount is the greater of its fair value less costs to sell and value in use and is
determined for an individual asset, unless the asset does not generate cash inflows that are largely
Investment properties are derecognized when they have either been disposed of or when the independent of those from other assets or groups of assets, in which case the recoverable amount
investment property is permanently withdrawn from use and no future benefit is expected from its is assessed as part of the cash generating unit to which it belongs. Where the carrying amount of
disposal. Any gains or losses on the retirement or disposal of an investment property are recognized in an asset exceeds its recoverable amount, the asset is considered impaired and is written down to
the statement of income under ‘Gain or loss on sale of properties’ in the year of retirement or disposal. its recoverable amount. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current market assessments of the
Chattel Properties Acquired time value of money and the risks specific to the asset. An impairment loss is charged to operations
Chattel properties acquired include mortgage properties acquired in settlement of loan receivables. in the year in which it arises.
These are carried at cost, which is the fair value at recognition date, less accumulated depreciation
and any impairment in value. An assessment is made at each reporting date as to whether there is any indication that previously
recognized impairment losses may no longer exist or may have decreased. If such indication exists,
The Bank applies the cost model in accounting for other properties acquired. Depreciation is the recoverable amount is estimated. A previously recognized impairment loss is reversed only if
computed on a straight-line basis over the EUL of three years. The EUL and the depreciation method there has been a change in the estimates used to determine the asset’s recoverable amount since
are reviewed periodically to ensure that the period and the method of depreciation are consistent the last impairment loss was recognized. If that is the case, the carrying amount of the asset is
with the expected pattern of economic benefits from items of other properties acquired. increased to its recoverable amount. That increased amount cannot exceed the carrying amount
that would have been determined, net of depreciation, had no impairment loss been recognized
The carrying values of chattel properties acquired are reviewed for impairment when events or for the asset in prior years. Such reversal is recognized in the statement of income. After such a
changes in circumstances indicate that the carrying value may not be recoverable. If any such reversal, the depreciation expense is adjusted in future years to allocate the asset’s revised carrying
indication exists and where the carrying values exceed the estimated recoverable amount, the amount, less any residual value, on a systematic basis over its remaining life.
assets are written down to their recoverable amounts (see accounting policy on Impairment of
Nonfinancial Assets). Income Taxes
Income tax on profit or loss for the year comprises current and deferred taxes. Income tax is
Intangible Assets determined in accordance with the Philippine Tax Laws. Income tax is recognized in the statement
The Bank’s intangible assets included under ‘Other assets’ in the statement of financial position of income, except to the extent that it relates to items directly in OCI.
consist of software costs.
Current tax
Software costs Current tax assets and liabilities for the current and prior periods are measured at the amount
Costs associated with developing or maintaining computer software programs are recognized expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to
as expense as incurred. Costs that are directly associated with identifiable and unique software compute the amount are those that are enacted or substantively enacted at the reporting date.
Deferred tax No expense is recognized for awards that do not ultimately vest.
Deferred tax is provided using the balance sheet liability method on all temporary differences at
the reporting date between the tax bases of assets and liabilities and their carrying amounts for Where the terms of an equity-settled award are modified, as a minimum, an expense is recognized
financial reporting purposes. as if the terms had not been modified. In addition, an expense is recognized for any modification,
which increases the total fair value of the share-based payment arrangement, or is otherwise
Deferred tax liabilities are recognized for all taxable temporary differences, with certain exceptions. beneficial to the employee as measured at the date of modification.
Deferred tax assets are recognized for all deductible temporary differences, carryforward of unused
tax credits from excess minimum corporate income tax (MCIT) over regular corporate income Where an equity-settled award is cancelled, it is treated as if it had vested on the date of
tax (RCIT) and unused net operating loss carryover (NOLCO), to the extent that it is probable cancellation, and any expense not yet recognized for the award is recognized immediately.
that taxable income will be available against which the deductible temporary differences and
carryforward of unused MCIT over RCIT and unused NOLCO can be utilized. Deferred tax, however, Treasury Shares
is not recognized when it arises from the initial recognition of an asset or liability in a transaction Own equity instruments which are acquired (treasury shares) are deducted from equity and
that is not a business combination and, at the time of the transaction, affects neither the accounting accounted for at weighted average cost. No gain or loss is recognized in the statement of income on
income nor taxable income. the purchase and sale of the Bank’s own equity instruments.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the Revenue Recognition
extent that it is no longer probable that sufficient taxable income will be available to allow all or Revenue from contract with customers is recognized upon transfer of promised goods or services to
part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each customers at an amount that reflects the consideration to which an entity expects to be entitled in
reporting date and are recognized to the extent that it has become probable that future taxable exchange for transferring goods or services to a customer. The Bank exercise judgement, taking into
income will allow the deferred tax asset to be recovered. consideration all of the relevant facts and circumstances when applying each step of the five-step
model to contracts with customers.
Deferred tax assets and liabilities are measured at the tax rates that are applicable to the period
when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been Within the scope of PFRS 15
enacted or substantively enacted at the reporting date. Service, charges, fees and commissions
Fees or components of fees that are linked to a certain performance are recognized when services
Deferred tax relating to items recognized directly in OCI is also recognized in OCI and not in the are rendered. These fees include corporate finance fees and remittance fees.
statement of income.
Gain (loss) on foreclosures and sale of properties
Share-Based Payment Transactions Gains or losses arising from the disposal of property and equipment, investment properties and chattel
Employees of the Bank receive remuneration in the form of share-based payment transactions, properties acquired shall be determined as the difference between the net disposal proceeds and the
whereby employees render services as consideration for equity instruments. carrying amount of the asset and shall be recognized in profit or loss in the period of the disposal.
Equity-settled transactions Other income

The cost of equity-settled transactions with employees is measured by reference to the fair value at Credit-related income due to late payments and other loan-related fees are recognized in the period
the date on which they are granted. The fair value is determined by an external valuation expert using when service has been rendered.
a binomial model. In valuing equity-settled transactions, no account is taken of any performance
conditions, other than conditions linked to the price of the shares of the Parent Company. Outside the scope of PFRS 15
The cost of equity-settled transactions is recognized in the statement of income together with Interest income
a corresponding increase in equity, over the period in which the performance and/or service Interest on interest-bearing financial assets at FVPL are recognized based on contractual rate.
conditions are fulfilled, ending on the vesting date. The cumulative expense recognized for equity- Interest on financial instruments measured at amortized cost and debt instruments classified as
settled transactions at each reporting date until the vesting date reflects the extent to which the FVOCI is recognized based on the EIR method.
vesting period has expired and the Bank’s best estimate of the number of equity instruments that
will ultimately vest.

The EIR method is a method of calculating the amortized cost of a financial asset or a financial Right-of-Use Assets
liability and allocating the interest income or interest expense over the relevant period. The Bank recognizes right-of-use assets at the commencement date of the lease (i.e., the date the
underlying asset is available for use) in the statement of financial position. Right-of-use assets are
The EIR is the rate that exactly discounts estimated future cash payments or receipts through the initially measured at cost, less any accumulated depreciation and impairment losses, and adjusted
expected life of the financial instrument or, when appropriate, a shorter period to the net carrying for any remeasurement of lease liabilities. The initial cost of right-of-use assets includes the amount
amount of the financial asset or financial liability. of lease liabilities recognized, initial direct costs incurred, lease payments made at or before the
commencement date less any lease incentives received and estimate of costs to be incurred by the
Under PFRS 9, when a financial asset becomes credit-impaired and is, therefore, regarded as Stage lessee in dismantling and removing the underlying asset, restoring the site on which it is located or
3, the Bank calculates interest income by applying the EIR to the net amortized cost of the financial restoring the underlying asset to the condition required by the terms and conditions of the lease,
asset. If the financial asset cures and is no longer credit-impaired, the Bank reverts to calculating unless those costs are incurred to produce inventories.
interest income on a gross basis.
Unless the Bank is reasonably certain to obtain ownership of the leased asset at the end of the lease
Net trading gains (losses) term, the recognized right-of-use assets are depreciated on a straight-line basis over the shorter of
Net trading gain (loss) represents results arising from trading activities including all gains and their estimated useful life and lease term. Right-of-use assets are subject to impairment.
losses from changes in fair value of financial assets and liabilities at FVPL and gains and losses from
disposal of financial assets at FVPL, and debt financial assets at FVOCI. The EUL of right-of-assets arising from lease arrangements is equivalent to its lease term.
Dividend income Lease liabilities

Dividend income is recognized when the Bank’s right to receive payment is established. At the commencement date of the lease, the Bank recognizes lease liabilities measured at the
present value of lease payments to be made over the lease term. The lease payments include fixed
Expenses payments (including in-substance fixed payments) less any lease incentives receivable, variable
Expenses are recognized when it is probable that decrease in future economic benefits related lease payments that depend on an index or a rate, and amounts expected to be paid under
to decrease in an asset or increase in a liability has occurred and that the decrease in economic residual value guarantees. The lease payments also include the exercise price of a purchase option
benefits can be measured reliably. reasonably certain to be exercised by the Bank and payments of penalties for terminating the lease,
if the lease term reflects the Bank exercising the option to terminate. Variable lease payments that
Interest expense do not depend on an index or a rate are recognized as expenses in the period in which the event or
Interest expense for all interest-bearing financial liabilities is recognized in ‘Interest expense’ in the condition that triggers the payment occurs. In calculating the present value of lease payments, the
statements of income using the EIR of the financial liabilities to which they relate. Bank uses its incremental borrowing rate at the lease commencement date because the interest rate
implicit in the lease is not readily determinable. After the commencement date, the amount of lease
Leases liabilities is increased to reflect the accretion of interest and reduced for the lease payments made.
The Bank assesses at contract inception whether a contract is, or contains, a lease. That is, if the In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change
contract conveys the right to control the use of an identified asset for a period of time in exchange in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a
for consideration. change in an index or rate used to determine such lease payments) or a change in the assessment of
an option to purchase the underlying asset.
The Bank applies a single recognition and measurement approach for all leases, except for short-
term leases and leases of low-value assets. The Bank recognizes lease liabilities to make lease Short-term leases and leases of low-value assets
payments and right-of-use assets representing the right to use the underlying assets. The Bank applies the short-term lease recognition exemption to its short-term leases of ATM sites
(i.e. those leases that have a lease term of 12 months or less from the commencement date and
do not contain a purchase option) and some of its retail branches. It also applies the lease of low-
value assets recognition exemption to leases of ATM sites that are considered to be of low value.
Lease payments on short-term leases and leases of low value assets are recognized as expense on a
straight-line basis over the lease term. Refer accounting policy on right-of-use assets.
Retirement Cost assets is based on market price information. When no market price is available, the fair value
Defined benefit plan of plan assets is estimated by discounting expected future cash flows using a discount rate that
The Bank has a funded, noncontributory defined benefit plan administered by a trustee. A defined reflects both the risk associated with the plan assets and the maturity or expected disposal date
benefit plan is a pension plan that defines an amount of pension benefit that an employee will of those assets (or, if they have no maturity, the expected period until the settlement of the related
receive upon retirement, usually dependent on one or more factors such as age, years of service obligations).
and compensation. The Bank’s retirement cost is determined using the projected unit credit
method. The retirement cost is generally funded through payments to a trustee-administered fund, The Bank’s right to be reimbursed of some or all of the expenditure required to settle a defined
determined by periodic actuarial calculations. benefit obligation is recognized as a separate asset at fair value when and only when reimbursement
is virtually certain.
The net defined benefit liability or asset is the aggregate of the present value of the defined benefit
obligation at the end of the reporting period reduced by the fair value of plan assets (if any), Defined contribution plan
adjusted for any effect of limiting a net defined benefit asset to the asset ceiling. The asset ceiling The Bank also contributes to its contributory, defined-contribution type staff provident plan based
is the present value of any economic benefits available in the form of refunds from the plan or on a fixed percentage of the employees’ salaries as defined in the plan. The contribution payable to
reductions in future contributions to the plan. a defined contribution plan is in proportion to the services rendered to the Bank by the employees
and is recorded as an expense under ‘Compensation and fringe benefits’ in the statement of income.
The cost of providing benefits under the defined benefit plans is actuarially determined using the Unpaid contributions, if any, are recorded as a liability.
projected unit credit method.
Employee leave entitlement
Defined benefit costs comprise the following: Employee entitlement to annual leave is recognized as a liability when the employees render the
services that increases their annual leave entitlement. The cost of accumulating annual leave
· Service cost are measured as the additional amount that the Bank expects to pay as a result of the unused
· Net interest on the net defined benefit liability or asset entitlement that has accumulated at the end of the reporting period.
· Remeasurements of net defined benefit liability or asset
Provisions
Service costs which include current service costs, past service costs and gains or losses on non- Provisions are recognized when the Bank has a present obligation (legal or constructive) as a
routine settlements are recognized as expense in the statement of income. Past service costs are result of a past event and it is probable that an outflow of assets embodying economic benefits
recognized when plan amendment or curtailment occurs. will be required to settle the obligation and a reliable estimate can be made of the amount of
the obligation. When the Bank expects some or all of a provision to be reimbursed, for example,
Net interest on the net defined benefit liability or asset is the change during the period in the under an insurance contract, the reimbursement is recognized as a separate asset but only when
net defined benefit liability or asset that arises from the passage of time which is determined by the reimbursement is virtually certain. The expense relating to any provision is presented in the
applying the discount rate based on government bonds to the net defined benefit liability or asset. statement of income, net of any reimbursement. If the effect of the time value of money is material,
Net interest on the net defined benefit liability or asset is recognized as expense or income in the provisions are determined by discounting the expected future cash flows at a pre-tax rate that
statement of income. reflects current market assessments of the time value of money and, where appropriate, the risks
specific to the liability. Where discounting is used, the increase in the provision due to the passage
Remeasurements comprising actuarial gains and losses, return on plan assets (excluding net of time is recognized as an ‘Interest expense’.
interest on defined benefit asset) and any change in the effect of the asset ceiling (excluding net
interest on defined benefit liability) are recognized immediately in OCI in the period in Contingent Liabilities and Contingent Assets
which they arise. Remeasurements are not reclassified to profit or loss in subsequent periods. Contingent liabilities are not recognized but are disclosed in the financial statements unless the
All remeasurements recognized in the OCI account ‘Remeasurement gains (losses) on retirement possibility of an outflow of assets embodying economic benefits is remote. Contingent assets
plan’ are not reclassified to another equity account in subsequent periods. are not recognized but are disclosed in the notes to the financial statements when an inflow of
economic benefits is probable.
Plan assets are assets that are held by a long-term employee benefit fund. Plan assets are not
available to the creditors of the Bank, nor can they be paid directly to the Bank. Fair value of plan

Events after the Reporting Date Effective beginning on or after January 1, 2024
Post year-end events that provide additional information about the Bank’s position at the reporting • Amendments to PAS 1, Classification of Liabilities as Current or Non-current
date (adjusting event) is reflected in the financial statements. Post year-end events that are not
adjusting events, if any, are disclosed when material to the financial statements. Effective beginning on or after January 1, 2025
• PFRS 17, Insurance Contracts
Fiduciary Activities
Assets and income arising from fiduciary activities together with related undertakings to return such Deferred effectivity
assets to customers are excluded from the financial statements where the Bank acts in a fiduciary • Amendments to PFRS 10, Consolidated Financial Statements, and PAS 28, Sale or
capacity such as nominee, trustee or agent. Contribution of Assets between an Investor and its Associate or Joint Venture
Equity
Capital stock (preferred stock and common stock) is measured at par value for all shares issued and 3. Significant Accounting Judgments and Estimates
outstanding. When the shares are sold at a premium, the difference between the proceeds and the The preparation of the financial statements in compliance with PFRS requires the Bank to make
par value is credited to ‘Capital paid in excess of par value’ account. judgments and estimates that affect the reported amounts of assets, liabilities, income and
expenses and disclosure of contingent assets and contingent liabilities. Future events may occur
‘Surplus’ represents accumulated earnings of the Bank. which will cause the judgments and assumptions used in arriving at the estimates to change. The
effects of any change in judgments and estimates are reflected in the financial statements as they
Dividends on Common Shares become reasonably determinable.
Dividends on common shares are recognized as a liability and deducted from equity when approved
by the BOD. Dividends for the period that are approved after the reporting date are dealt with as an Judgments and estimates are continually evaluated and are based on historical experience and
event after the reporting date. other factors, including expectations of future events that are believed to be reasonable under the
circumstances.
Standards Issued but Not Yet Effective
Pronouncements issued but not yet effective are listed below. The Bank intends to adopt the Judgments
following pronouncements when they become effective. Adoption of these pronouncements is not a) Contingencies
expected to have a significant impact on the Bank’s financial statements. The Bank has suits and claims that remain unsettled. Management believes, based on the
opinion of its legal counsel that the ultimate outcome of such cases and claims will not involve
Effective beginning on or after January 1, 2022 sums having a material effect on its financial statements. It is possible, however, that the
• Amendments to PFRS 3, Reference to the Conceptual Framework future results of operations could be materially affected by changes in the estimates or in the
• Amendments to Philippine Accounting Standard (PAS) 16, Plant and Equipment: Proceeds effectiveness of the strategies relating to these proceedings.
before Intended Use
• Amendments to PAS 37, Onerous Contracts – Costs of Fulfilling a Contract b) Fair value of financial assets
• Annual Improvements to PFRSs 2018-2020 Cycle When the fair values of financial instruments recorded in the statement of financial position
• Amendments to PFRS 1, First-time Adoption of Philippines Financial Reporting cannot be derived from active markets, they are determined using a variety of valuation
Standards, Subsidiary as a first-time adopter techniques that include the use of mathematical models. The inputs to these models are
• Amendments to PFRS 9, Financial Instruments, Fees in the ’10 per cent’ test for taken from observable markets where possible, but where this is not feasible, a degree of
derecognition of financial liabilities judgment is required in establishing fair values. These judgments may include considerations
• Amendments to PAS 41, Agriculture, Taxation in fair value measurements of liquidity and model inputs such as correlation and volatility for longer dated derivatives.
Effective beginning on or after January 1, 2023 The carrying values and corresponding fair values of financial instruments as well as the
• Amendments to PAS 12, Deferred Tax related to Assets and Liabilities arising from a Single manner in which fair values were determined are discussed in Note 5.
Transaction
• Amendments to PAS 8, Definition of Accounting Estimates
• Amendments to PAS 1 and PFRS Practice Statement 2, Disclosure of Accounting Policies
c) Evaluation of business model in managing financial instruments loan account were given internal risk grades based on their most recent financial condition for
The Bank manages its financial assets based on business models that maintain adequate corporates or based on behavioral factors for retail such as repayment performance, delinquency
level of financial assets to match its expected cash outflows, largely arising from customers’ history, etc. These risk grades are then translated to probability of defaults based on statistical
withdrawals and continuing loan disbursements to borrowers. models that utilized historical default experiences from the various internal risk grades.
The business model criteria may be applied at the level of a portfolio of financial instruments Forward-looking adjustment (FLA) models were likewise developed statistically for each
(i.e. group of financial instruments that are managed together by the Bank) but not on an product line. These models attempt to establish a link between internal default experience and
instrument-by-instrument basis (i.e. not based on intention for each individual financial a combination of several macro-economic variables, resulting into additional ECL required on
instrument). This may include, for instance, a portfolio of investments that the Bank manages weak economic outlook and vice-versa. On the other hand, the determination of the economic
in order to collect contractual cash flows and another portfolio of investments that the outlook is determined by an economic research team and duly approved by management.
Bank manages in order to trade to realize fair value changes. The Bank’s business model
is determined at portfolio level, which reflects how group of financial assets are managed Lastly, the other significant variable used in ECL – the LGD – was likewise estimated based on
together to achieve a particular business objective. Business model assessment is a matter of internal loss experience and taking into consideration all direct/indirect costs involved in the
fact, rather than merely an assertion. loss recovery on the accounts.
As of December 31, 2021 and 2020, the Bank’s financial assets are classified as at FVTPL, FVOCI Refer to Note 4 for detailed discussions regarding the abovementioned significant judgments
and amortized costs. There were no reclassifications made among the three categories during and estimates in relation to ECL estimation.
the year.
The gross carrying amounts of loans and receivables subject to ECL and related ECL
Estimates allowances for credit losses as of December 31, 2021 and 2020 are disclosed in Note 9.
a. Credit losses on loans and receivables
The measurement of credit losses requires significant judgment, in particular, the estimation b. Recognition of deferred tax assets
of the amount and timing of future cash flows and collateral values when determining Deferred tax assets are recognized for all unused tax losses and temporary differences to the
impairment losses and the assessment of a SICR. These estimates are driven by a number of extent that it is probable that taxable income will be available against which losses can be
factors, changes in which can result in different levels of allowances. utilized. Significant management judgment is required to determine the amount of deferred
tax assets that can be recognized, based upon the likely timing and level of future taxable
The Bank’s ECL calculations are outputs of complex models with a number of underlying income together with future tax planning strategies. Key assumptions used in forecast of
assumptions regarding the choice of variable inputs and their interdependencies. Elements future taxable income include loan portfolio and deposit growth rates.
of the ECL models that are considered accounting judgments and estimates include, among
others: As of December 31, 2021 and 2020, the Bank recognized deferred tax assets amounting to
P1.4 billion and P1.5 billion, respectively (Note 25). Based on forecast, management assessed
• Segmentation of the portfolio, where the appropriate model or ECL approach is used that it is probable that future taxable income will be available to utilize the deferred tax assets.
• Criteria for assessing if there has been a SICR so allowances for debt financial assets
should be measured on a lifetime ECL basis and the qualitative assessment c. Defined benefit retirement plan
• Segmentation of debt financial assets when their ECL is assessed on a collective basis The cost of the defined benefit retirement plan as well as the present value of the defined
• Development of ECL models, including the various formulas and choice of inputs benefit obligation is determined using actuarial valuation. The actuarial valuation involves
• Determination of associations between macroeconomic scenarios and economic inputs, making various assumptions. These include the determination of the discount rates, future
such as unemployment levels and collateral values, and the effect on PDs, EADs and LGDs salary increases and mortality rates. Due to the complexity of the valuation, the underlying
• Selection of forward-looking macroeconomics scenarios and their probability weightings, assumptions and its long-term nature, defined benefit obligations are highly sensitive to
to derive the economic inputs into the ECL models. changes in these assumptions. All assumptions are reviewed at each reporting date.
The Bank’s ECL models were internally developed and independently validated to compute In determining the appropriate single weighted average discount rate, management considers
for the potential credit loss of each loan account in adherence to PFRS 9 standards. Models the interest rates of government securities, with extrapolated maturities corresponding to the
were developed for each product line and mostly followed a “rated-approach” where each expected duration of the defined benefit obligation.

The mortality rate is based on publicly available mortality tables for the Philippines and is Risk Management has the following general objectives:
modified accordingly with estimates of mortality improvements. Future salary increases
pension increases are based on historical annual merit, market and promotional increase and • To promote risk management culture and philosophy of risk awareness
future inflation rates. The carrying amount of retirement liability as of December 31, 2021 and • To assist risk-taking business and operating units in understanding and
2020 and the details of the assumptions used in the actuarial valuation are provided in Note 20. measuring risk/return profiles
• To develop risk and control infrastructure
• To develop, disseminate, and maintain formalized risk policies, frameworks, methodologies
4. Financial Risk Management Objectives and Policies and tools
• To provide effective means of differentiating the degree of risk in the various business
General Risk Management Structure portfolios of the Bank
Risk Management structure within the Bank consists of three lines of defense consisting of risk-
taking units, risk control units, and Internal Audit. The BOD, through the Risk Management Internal Audit provides independent assurance of the effectiveness of the risk management
Committee (RMC), performs overall supervision of risk management. Loan proposals and other approach. The Audit Committee, which is a Board-level committee, is responsible for the overall
transactions beyond the approval level of the management committees, particularly those involving supervision of the audit function within the organization.
directors, officers, stockholders and related interests (DOSRI), are elevated to the BOD, which is
the highest authority within the Bank. The RMC is a Board-level Committee that is responsible Risk Measurement and Reporting
for setting the Bank’s corporate risk policy and strategies. It ensures the adequacy of the risk
management infrastructure of the Bank to address the risks it faces in its banking activities including To measure risk of default for corporate and commercial loans, the Bank makes use of the
credit, market, operational, liquidity and other material risks. International Risk Rating System (IRRS) which consists of 25 risk grades that are mapped to external
ratings, as well as risk classification according to BSP guidelines. The IRRS is used as a tool for
Senior Management also plays an integral role in ensuring proper implementation of risk policies decision making as well as in determining appropriate pricing for loan accounts. The key risk
and strategies. The Bank has the following committees that manage the Bank’s key risk areas. indicators measure the Bank’s credit risk position against targets, historical performance or industry
average in selected areas as of a given period.
• Credit Committee (CC) is responsible for the approval of credit facilities as well as policies,
frameworks and methodologies pertaining to credit risk. In terms of measuring the Bank’s ability to withstand the impact of stress conditions, stress testing
methodology is used. Through stress testing, the impact of exceptional events on the Bank’s asset
The CC has a maximum approving limit of P250.0 million for secured and P100.0 million for quality, profitability and capital adequacy is measured.
unsecured loans. Proposals beyond this level have to be escalated to Bank’s Management Credit
Committee for endorsement to BOD for approval. In terms of reporting, CRPA prepares regular loan portfolio reports covering areas such as business
growth, asset quality, concentration of exposures and compliance to applicable regulatory and
Asset and Liability Management Committee (ALCO) is responsible for recommending strategies, internal guidelines. These reports are submitted to the CC, RMC, BOD and other end-users.
policies and frameworks to identify, measure, control, monitor and manage market and liquidity
risks, as well as balance sheet and capital management to the RMC/Board for approval. Risk Mitigation
As part of its risk management, the Bank uses derivatives and other treasury products to manage
Management Committee is responsible for directing and reviewing the Bank’s overall operations to exposures resulting from changes in interest rates and fluctuations in foreign exchange levels.
achieve its objectives and targets.
Where appropriate, the Bank requires a second way out in the form of eligible collaterals or
Risk Management is functionally independent of risk-taking units within the Bank. It is composed guarantee/surety to mitigate credit risk.
of Regional Group Credit Management (RGCM), Credit Risk Management (CRM), Market Risk
Management (MRM), Operational Risk Management (ORM), Enterprise Risk Management (ERM), Credit Risk
Credit Risk Review, Credit Investigation and Appraisal, and Credit Risk Portfolio Analytics (CRPA). Credit risk comprises bulk of the Bank’s risk capital. Credit risk is managed through a two-pronged
It is responsible for the development of measures to ensure that the risk inherent in the Bank’s approach: the credit risk management and credit portfolio management.
activities are properly identified, measured, controlled and reported.
CRM undertakes the improvement and implementation of Group risk frameworks, tools, and Direct and indirect borrowings of the Philippine government is treated as non-risk and considered as
methodologies for the identification, measurement, monitoring, control and pricing of credit risk secured.
in accordance to the Bank’s risk appetite and lending direction and strategies. Methodologies are
implemented in coordination with the Parent Company to ensure consistency of risk management Borrowings secured by guarantees/collateral issued by the Parent Company and Maybank branches
approach across the Maybank Group. Where applicable, methodologies and tools are adopted from and subsidiaries are considered secured.
the Parent Company and customized to the local operating environment.
The Bank now undertakes the maintenance, marketing and disposal of its acquired assets which
CRM is responsible for setting concentration limits and monitoring exposures against these limits. is previously managed by its affiliate, Philmay Properties, Inc. (PPI). Pending disposal of acquired
CRPA Unit also prepares various credit risk reports and undertakes the development of credit risk assets, the Bank arranges for the properties to be leased on a short-term basis by interested parties.
application and behavioral scoring models which are submitted to Management, RMC, and the BOD,
and subsequently deployed in the daily credit underwriting and portfolio management operations Credit risk exposures
of the various lending units. The table below shows the Bank’s maximum exposure to credit risk on loans and receivable as of
December 31, 2021 and 2020:
Part of the Bank’s Credit Risk Management processes are to develop and implement various
mechanisms to support business generation, capital optimization, portfolio management, and
Basel III implementation. It ensures that credit approval structures follow the “four eyes policy” December 31, 2021
for appropriate check and balance. The Credit Review Unit undertakes the post-approval review of Maximum Exposure
selected loan accounts. Fair value of Financial effect
Carrying value collateral of collateral Net exposure
Collateral and other credit enhancements SPURA P4,740,095,184 P4,740,198,613 P4,740,095,184 P–
There are various collaterals and securities that are acceptable to the Bank. In evaluating
Loans and receivables:
acceptability of collateral, three factors are considered: control, disposability and margin.
Loans:
The Account Officer is primarily responsible in ensuring the acceptability of collaterals/security Corporate 9,974,922,630 274,030,614 274,030,614 9,700,892,016
obtained to secure the loan based on established minimum acceptance criteria and maximum Commercial 2,787,092,634 7,224,338,401 2,620,741,477 166,351,157
margin of financing. Consumer:
Auto loans 21,607,161,671 52,611,659,428 21,492,852,348 114,309,323
The Account Officer is responsible in ensuring that the collaterals are duly and regularly inspected
and appraised, adequately insured where necessary, and payment of applicable taxes are updated. Housing loans 11,438,432,367 20,335,169,878 11,123,673,076 314,759,291
Others 810,087,771 25,596,702 14,807,033 795,280,738
The Account Officer also ensures that the approved margin of financing is maintained throughout 46,617,697,073 80,470,795,023 35,526,104,548 11,091,592,525
the life of the loan. Accounts receivable:
Corporate 1,017,463,290 579,666,837 579,666,837 437,796,453
Loans or portions thereof that are covered by collateral/security including but not limited to the
following are considered secured: Individual 5,835,717 − − 5,835,717
1,023,299,007 579,666,837 579,666,837 443,632,170
• Registered First Real Estate Mortgage over eligible real estate properties with road right of way Sales contract receivable:
• Peso or US Dollar-denominated deposits that are maintained with the Bank Corporate 316,384,293 509,971,567 316,384,293 −
• Government securities
Individual 38,195,916 93,168,511 38,195,916 −
• Motor vehicles
• Machinery and equipment 354,580,209 603,140,078 354,580,209 −
• Publicly-traded shares of stocks RCOCI 276,516 − − 276,516
P52,735,947,989 P86,393,800,551 P41,200,446,778 P11,535,501,211

December 31, 2020 The tables below show the distribution of maximum credit exposure by industry sector of financial
assets and off-balance sheet items before taking into account the fair value of the loan collateral or
Maximum Exposure
Fair value of Financial effect other credit enhancements (amounts in thousands):
Carrying value collateral of collateral Net exposure
SPURA P946,563,080 P946,563,080 P946,563,080 P– December 31, 2021 December 31, 2020
Loans and receivables: Amount % Amount %
Loans: Loans and Receivables
Corporate 14,158,973,785 2,567,097,239 1,158,665,403 13,000,308,382 Construction and real estate P17,302,924 35.97 P15,408,855 26.3
Commercial 2,586,051,320 4,337,388,956 1,667,655,736 918,395,584 Wholesale and retail, repair of motor vehicles,
motorcycles and personal household goods 6,376,309 13.26 12,170,565 20.8
Consumer:
Power, electricity and water distribution 3,878,903 8.06 3,957,090 6.76
Auto loans 27,995,304,963 62,050,989,410 27,991,961,057 3,343,906
Transportation, storage and communication 3,319,452 6.90 4,792,464 8.18
Housing loans 11,141,302,316 19,661,622,924 10,098,301,978 1,043,000,338
Trading and manufacturing 1,777,362 3.70 2,768,073 4.73
Others 1,159,892,799 21,839,112 11,120,546 1,148,772,253
Agriculture 1,541,891 3.21 1,393,078 2.38
57,041,525,183 88,638,937,641 40,927,704,720 16,113,820,463
Government 1,540,344 3.20 370,497 0.63
Accounts receivable:
Financial intermediaries 839,971 1.75 373,915 0.64
Corporate 1,041,397,123 599,666,837 599,666,837 441,730,286
Others 11,523,795 23.96 17,332,249 29.6
Individual 8,728,171 − − 8,728,171
48,100,951 100.00 58,566,786 100.00
1,050,125,294 599,666,837 599,666,837 450,458,457
Loans and Advances to Banks*
Sales contract receivable:
Government 22,940,574 90.84 12,687,185 75.66
Corporate 318,579,592 509,971,567 318,579,592 −
Financial intermediaries 2,313,028 9.16 4,080,555 24.34
Individual 33,077,222 81,871,376 33,077,222 −
25,253,602 100.00 16,767,740 100.00
351,656,814 591,842,943 351,656,814 −
Trading and Financial Investment Securities**
RCOCI 328,684 − − 328,684
Government 20,648,939 88.82 16,558,610 81.84
P59,390,199,055 P90,777,010,501 P42,825,591,451 P16,564,607,604
Construction and real estate 896,245 3.86 951,967 4.70
Financial intermediaries 508,990 2.19 765,987 3.79
For the other financial assets, the carrying amounts represent the maximum exposure to credit risk Power, electricity and water distribution 90,382 0.39 6,628 0.03
as at December 31, 2021 and 2020.
Activities of holding companies – – 1,950,762 9.64
Credit risk management has set concentration limits according to various categories such as Others 1,103,691 4.75 – –
individual/group borrower, banks, countries, collateral, economic sectors, and product types to 23,248,247 100.00 20,233,954 100.00
ensure optimal portfolio diversification. Others***
Financial intermediaries 1,114,515 48.40 837,669 31.74
Risk Concentration
Concentration of credit arises when a number of counterparties are engaged in similar business Construction and real estate 479,414 20.82 485,459 18.40
activities, or activities in the same geographic region, or have similar economic features that would Wholesale and retail, repair of motor vehicles,
cause their ability to meet contractual obligations to be similarly affected by changes in economic, motorcycles and personal household goods 288,655 12.54 176,513 6.69
political or other conditions. Concentrations indicate the relative sensitivity of the Bank’s performance Trading and manufacturing – – 916,353 34.73
to developments affecting a particular industry or geographic location. Concentration limits are set Power, electricity and water distribution – – 62,365 2.36
by CRM, endorsed by RMC, and approved by the BOD. These include limits by business segments, Others 419,970 18.24 160,396 6.08
credit facility/portfolio, collateral/security, economic sector, loan size and obligor type. These limits
2,302,554 100.00 2,638,755 100.00
are established to ensure diversification, capital optimization and appropriate management of
concentration risk. P98,905,354 P98,207,235
*Consists of Due from BSP, Due from other banks and Interbank loans receivables and SPURA
**Consists of Financial assets at FVPL, Financial assets at FVOCI and Investment securities at amortized cost and excludes equity securities
***Consists of Miscellaneous COCI and Contingent liabilities relating to outstanding letters of credit
Credit quality per class of financial assets Start-up companies, regardless of the strength of their percentage have default grade cap of 19.
For investment securities and depository accounts, the Bank relies on acceptable third-party issuer • Non-Performing Grade is from Grade 23 to 25 which is under past due or impaired
or issue ratings, international or local, as applicable. Any exposure, whether direct or indirect, to the
sovereign entity – Republic of the Philippines (ROP) and BSP, is considered non-risk or high grade. a.) Grade 23 is a non-performing grade assigned to borrowers classified as Substandard
Issuances by ROP and BSP are considered as high grade since the chance of default is virtually nil. accounts. These are loans and other credit accommodations that have well-defined
weakness/(es), that may jeopardize repayment/ liquidation in full, either in respect of the
Private entities, such as financial institutions or corporations, issuing debt securities, with risk rating business, cash flow or financial position, which may include adverse trends
similar to ROP/BSP are likewise classified as high grade. Such entities are generally held as top-tier. or developments that affect willingness or repayment ability of the borrower.
Companies with third party ratings lower than ROP are classified as standard grade. Basic characteristics include the following:
These are companies that exhibit moderate credit risk with acceptable capacity to meet its financial
commitments. • Weak financial condition and results of operation that leads to the borrower’s
inability to generate sufficient cash flow for debt servicing, except for start-up firms
Companies without third party ratings are classified as unrated or adopt the Bank’s internal risk rating. which shall be evaluated on a case-to-case basis;
• Past due secured loans and other credit accommodations where properties offered
For loans and receivables, the following are subject to risk rating and behavioral scoring: as collateral have been found with defects as to ownership or with other adverse
information.
• Corporate and commercial loans (except those fully secured by hold-out on deposits) • Breach of any key financial covenants/agreements that will adversely affect the
• Contract-to-sell financing (risk rating on the developer) capacity to pay-off the borrower; or
• Consumer loans (except truck and salary loans) • Classified “Especially Mentioned” as of the last credit review without adequate
corrective action
Accounts which are not subjected to risk rating, such as consumer loans (i.e. salary loans, truck • Loans past due for more than 90 days.
loans) are considered unrated.
b.) Grade 24 is a non-performing grade assigned to borrowers classified as Doubtful
Loan Grades accounts. These are loans and credit accommodations that exhibit severe weaknesses
• Performing Grade is from Grade 1 to 22 – Grade 1 (i.e. lowest probability of default) is the best than those classified as “Substandard” whose characteristics on the basis of currently
grade while Grade 22 (i.e. highest probability of default) is the worst grade. known facts, conditions and values make collection or liquidation highly improbable,
however the exact amount remains undeterminable as yet. Classification as “Loss” is
a.) High grade (accounts with risk grade of 1 to 10) deferred because of specific pending factors which may strengthen the assets.
Accounts falling within this classification have good to highly exceptional capacity to
meet its financial commitments with very low to low credit risk. c.) Grade 25 is a non-performing grade assigned to borrowers classified as Loss.
b.) Standard grade (accounts with risk grade of 11 to 15) These are loans or portions thereof which are considered uncollectible or worthless.
Accounts falling within this classification have fairly good to fairly acceptable capacity to
meet their financial commitments with moderate credit risk.
c.) Substandard grade (accounts with risk grade of 16 to 22)

Accounts under this category exhibit high credit or default risk with impairment
characteristics that are neither classified under ‘past due but not impaired’ nor
‘individually impaired’.

The credit quality of the Bank’s receivables from customers as of December 31, 2021 follow The credit quality of the Bank’s financial assets other than loans and receivables as of
(in thousands): December 31, 2021 follow (in thousands):
Stage 1 Stage 2 Stage 3 TOTAL Stage 1 Stage 2 Stage 3 TOTAL

Auto Due from BSP
Unrated P17,507,770 P2,995,688 P– P20,503,458 High Grade P16,670,509 P– P– P16,670,509
Non-performing grade – – 1,924,763 1,924,763 Due from Other Banks
High Grade P2,313,028 P– P– P2,313,028
Auto Total 17,507,770 2,995,688 1,924,763 22,428,221
Interbank Loans Receivables
Commercial
and SPURA
High Grade 1,985,272 – – 1,985,272 High Grade P6,270,065 P– P– P6,270,065
Standard grade 340,069 102,555 – 442,624 Financial Instruments at FVOCI
Substandard Grade 726 132,336 103,841 236,903 High Grade P8,572,846 P– P– P8,572,846
Non-performing grade – – 584,883 584,883 Financial Instruments at
Commercial Total 2,326,067 234,891 688,724 3,249,682 Amortized Cost
Corporate High Grade P10,489,112 P– P– P10,489,112
High Grade 3,059,041 – – 3,059,041
The credit quality of the Bank’s receivables from customers as of December 31, 2020 follow
Standard grade 4,999,530 462,784 – 5,462,314 (in thousands):
Substandard Grade 424,497 1,119,693 814,103 2,358,293
Non-performing grade – – 388,173 388,173 Stage 1 Stage 2 Stage 3 TOTAL
Corporate Total 8,483,068 1,582,477 1,202,276 11,267,821 Auto
Housing Unrated P22,693,305 P3,808,550 P– P26,501,855
Unrated 9,982,961 1,244,330 – 11,227,291 Non-performing grade – – 2,441,883 2,441,883
Non-performing grade – – 445,168 445,168 Auto Total 22,693,305 3,808,550 2,441,883 28,943,738
Housing Total 9,982,961 1,244,330 445,168 11,672,459 Commercial
Other High Grade 24,889 – – 24,889
Standard grade 2,343,740 40,384 – 2,384,124
Unrated 856,008 49,628 – 905,636
Substandard Grade – 137,179 – 137,179
Non-performing grade – – 44,504 44,504
Especially Mentioned – 70,057 – 70,057
Other Total 856,008 49,628 44,504 950,140
Grand Total P39,155,874 P6,107,014 P4,305,435 P49,568,323 Commercial Total 2,368,629 247,620 142,154 2,758,403
Corporate
High Grade 166,666 – – 166,666
Standard grade 721,239 – – 721,239
Substandard Grade 11,069,942 860,458 – 11,930,400
Especially Mentioned 9,966 367,881 – 377,847
Doubtful – – 1,742 1,742
Non-performing grade – – 1,801,932 1,801,932
Corporate Total 11,967,813 1,228,339 1,803,674 14,999,826
Stage 1 Stage 2 Stage 3 TOTAL Market Risk

Housing The Bank recognizes market risk as the adverse impact on earnings or capital, either immediate or
Unrated 9,452,561 1,423,601 – 10,876,162 over time, arising from changes in the level of volatility of market rates or prices such as interest
rates, foreign exchange rates, commodity prices and equity prices. Market risk arises through the
Bank’s trading and balance sheet activities. The primary categories of market risk for the Bank are:
Housing Total 9,452,561 1,423,601 673,922 11,550,084
Other i. Interest rate risk: arising from changes in prevailing interest rates and implied volatilities on
Unrated 1,125,632 41,347 – 1,166,979 interest rate options; and
Non-performing grade – – 108,015 108,015 ii. Foreign exchange (FX) rate risk: arising from changes in exchange rates or risk arising from
Other Total 1,125,632 41,347 108,015 1,274,994 adverse movements/mismatches in currencies.
Grand Total P47,607,940 P6,749,457 P5,169,648 P59,527,045
The RMC is the overall risk oversight body. Management of market, interest rate risk in the banking
The credit quality of the Bank’s financial assets other than loans and receivables as of book and liquidity risks is delegated to the ALCO. ALCO is responsible for the establishment of
December 31, 2020 follow (in thousands): appropriate risk policies and limits, duly approved by the RMC; and execution of both strategic and
tactical actions to maintain the exposure within the set tolerances and meet the risk and reward
Stage 1 Stage 2 Stage 3 TOTAL objectives of the Bank.
Due from BSP
The Bank established the MRM to assist the BOD, RMC, ALCO in monitoring and managing the
High Grade P11,740,622 P– P– P11,740,622 Bank’s market risk exposures independently from the risk-taking units. MRM also acts as business
Due from Other Banks partners with Global Markets in the daily monitoring of its positions against approved risk measures.
High Grade P4,080,555 P– P– P4,080,555 MRM’s roles include the following:
Financial Instruments at FVOCI
High Grade P7,802,067 P– P– P7,802,067 • Ensure that the market, IRRBB and liquidity risk management objectives of the Bank are
Financial Instruments at achieved through the development, implementation, maintenance and enhancement of
Amortized Cost a comprehensive risk management process that comprises of qualitative and quantitative
High Grade P8,357,663 P– P– P8,357,663 methodologies to identify, measure, control and monitor, among others, the following:
Substandard Grade – 300,000 – 300,000 • Market risks, which covers the risk of loss of earnings arising from changes in interest
Financial Instruments at
rates, foreign exchange rates, equity and commodity prices and their implied volatilities
Amortized
• Liquidity risks, which covers liquidity crisis, funding structure, fund raising policies and
Cost-Total P8,357,663 P300,000 P– P8,657,663
strategies, diversification of funding sources, gap analysis and management
• Provide support functions to the ALCO to facilitate informed strategic management
As of December 31, 2021 and 2020, allowance on individually impaired receivables of the Bank decision making
amounted to P1.2 billion and P0.7 billion, respectively. • Provide consultative services and support functions to all relevant units within the Bank on
matters pertaining to market and liquidity risks management and treasury operations
Impairment assessment • Participate, in collaboration with other risk management units within the Bank on cross border
The Bank uses a provision matrix to calculate ECL for receivables from retail customers. The risk management issues, to identify and mitigate various risks inherent in new Global Markets
provision matrix is initially based on the Bank’s historical observed default rates. The Bank and core banking products prior to product introduction
calibrates the matrix to adjust the historical credit loss experience with forward-looking information. • Provide revaluation prices of relevant Global Markets products transacted by various business
For instance, if forecast economic conditions (i.e., inflation rate) are expected to deteriorate over the units within the Bank
next year which can lead to an increased number of defaults in the financial sector, the historical • Perform regular independent supervision of Global Markets operations
default rates will be adjusted. At every reporting date, the historical observed default rates are
updated and changes in the forward-looking estimates are analyzed.

A Market and Liquidity Risk Management (MLRM) Framework is in place to institutionalize vigilance Non-Trading: PV01
and awareness of market and liquidity risk. MLRM provides the foundation for the optimization of PV01 measures the change in the value of the portfolio with 1 basis point increase in the yield curve
risk returns, consistent management of market and liquidity risk and governance and risk oversight. and is applicable to the FVOCI portfolio.
All market risk policies being issued are reviewed at least annually to ensure compliance with
regulatory requirements and up to par with international best practices. Shown in the table below is the Interest Rate Sensitivities (PV01) Report of GM’s Rates Banking Book
Investments as at December 31, 2021 and 2020 (amounts expressed in thousands).
The Bank’s traded market risk exposures are primarily from proprietary trading, client servicing
and market making. Various risk measurement techniques are used by the Bank to monitor and Rates Banking
manage market risk and IRRBB, such as Price-Value-of-a-Basis-Point (PV01), FX net open position
(NOP), Value‑at‑Risk (VaR), Stop Loss, Earnings-at-Risk (EaR) and Impact on Economic Value (IEV). Desk 2021 2020
In addition, a variety of stress testing techniques are performed to complement the reporting to PHP (P2,884) (P2,225)
Management. USD (1,560) (1,719)
Net (P4,444) (P3,944)
Interest rate risk
The Bank is exposed to various risks associated with the effects of fluctuations in the prevailing Interest Rate Risk in Banking Book: EaR and IEV
levels of market interest rates on the financial position and cash flows. Interest rate risk exposure IRRBB is defined as a Pillar 2 risk under the BSP Risk-Weighted Capital Adequacy Framework (Basel II) –
is identified, measured, monitored and controlled through thresholds and procedures set by the Internal Capital Adequacy Assessment Process (Pillar 2) guidelines. IRRBB is one of the Pillar 2 risks that is
Management to protect total net interest income from changes in market interest rates. quantifiable and reliably measured and quantified, with acceptable risk identification and measurement
methodologies that have been reasonably tested and accepted within the industry.
Trading: PV01
PV01 measures the change in the value of the portfolio with 1 basis point increase in the yield curve and is The Bank emphasizes the importance of managing interest rate risk in the banking book as most
applicable for the trading portfolio. Thresholds are set annually to re-assess the Bank’s risk appetite and of the balance sheet items of the Bank generate interest income and interest expense, which are
strategy. The PV01 is computed and reported daily to Global Markets and monthly to ALCO. indexed to interest rates. Volatility of earnings can pose a threat to the Bank’s profitability while
economic value provides a more comprehensive view of the potential long-term effects on the
Shown in the table below is the Interest Rate Sensitivities (PV01) Report – By Portfolio as at Bank’s overall capital adequacy.
December 31, 2021 and 2020 (amounts expressed in thousands).
All policies, procedures and limits related to IRRBB are presented and deliberated in ALCO prior
Rates Trading endorsement to RMC for final resolution. Balance sheet management is the prime responsibility of
ALCO and key strategies on how to optimize assets and liabilities are discussed every meeting.
Desk 2021 2020
PHP (P3.31) (P363.20) As a measurement tool, the Bank utilizes EaR to estimate the sensitivity of the Bank’s Net Interest
USD (0.00) 0.00 Income (NII) due to a 100 basis points (bps) change in the underlying interest rates over a period of
Net (P3.31) (P363.20) one year. IEV, on the other hand, shows the sensitivity of economic value on the long term to a
100 bps change in the market yield curve.
Interest Rate Derivatives
EaR and IEV are calculated based on the repricing gaps, or the difference between the amounts of
Desk 2021 2020 rate sensitive assets and the amounts of rate sensitive liabilities. A gap is considered negative when
PHP P8.77 (P178.02) the amount of interest rate sensitive liabilities exceeds the amount of interest rate sensitive assets.
USD (54.16) 154.68 A gap is considered positive when the amount of interest rate sensitive assets exceeds the amount
Net (P45.39) (P23.34) of interest rate sensitive liabilities. Accordingly, during a period of rising interest rates, a bank with
a positive gap would be in a position to invest in higher yielding assets earlier than it would need to
refinance its interest rate sensitive liabilities. During a period of falling interest rates, a bank with
a positive gap would tend to see its interest rate sensitive assets repricing earlier than its interest
rate sensitive liabilities, which may restrain the growth of its net income or result in a decline in net
interest income. To reflect sensitivity of certain assets and liabilities, analysis of balances and its
movement is done via application of behavioral assumptions to repricing cash flow.
The Bank monitors the exposure of financial assets and financial liabilities to fluctuations in interest Foreign currency-denominated liabilities generally consist of: (a) foreign currency-denominated
rates by measuring the impact of interest rate movements on its interest income. This is done by deposits in the Bank’s FCDU, (b) accounts maintained in the Philippines or which are generated
modeling the impact of various changes in interest rates to the Bank’s interest-related income and from remittances to the Philippines by Filipino expatriates and overseas Filipino workers who
expenses. The EaR and IEV is computed and reported monthly to ALCO and bi-monthly to RMC. retain for their own benefit or for the benefit of a third party, and (c) foreign currency-denominated
Additionally, the Bank uses sensitivity analysis for stress testing of IRRBB. Parallel shock of 300 and borrowings appearing in the regular books of the Bank.
400 basis points are simulated and reported for perspective.
Foreign currency-denominated deposits are generally used to fund the Bank’s foreign
The following tables provide additional information on the statistical impact on net income and currency‑denominated loan and investment portfolio in the FCDU. Banks are required by the BSP to
equity as of December 31, 2021 and 2020 (amounts in thousands): match the foreign currency-denominated liabilities with the foreign currency-denominated assets
held under the FCDU books.
December 31, 2021
The Bank has significant exposure to US$ monetary assets and liabilities as of December 31, 2021
Currency PHP US$ and 2020.
Changes in interest rates
(in basis points) +100 -100 +100 -100 The tables below summarize the reasonable possible movement of the currency rate against each
Change in net income (P177,888) P177,888 (P144,711) P144,711 significant foreign currency with all other variables held constant on the statements of income
Change in equity (109,059) 109,059 (147,431) 147,431 (US$ against PHP) (amounts in thousands).
December 31, 2020 Bankwide FX Position

Currency PHP US$
Changes in interest rates December 31, 2021
+100 -100 +100 -100
(in basis points) Changes in foreign currency exchange rate +5.0% -5.0%
Change in net income (P304,688) P304,688 (P84,357) P84,357 Effect on profit before tax (in thousands) (P3,852) P3,852
Change in equity (2,396) 2,396 (172,788) 172,788
December 31, 2020
The sensitivity in the statements of income is the effect of the assumed changes in interest rates Changes in foreign currency exchange rate +5.0% -5.0%
on the net interest income for one year, based on the floating rate financial assets and financial Effect on profit before tax (in thousands) P588 (P588)
liabilities held at the reporting date. The sensitivity of equity is calculated by revaluing fixed-rate
FVOCI investments at reporting date for the effects of the assumed changes in interest rates. The Trading FX USD Position
impact on the equity as stated above already excludes the impact on transactions affecting the
statements of income. December 31, 2021 December 31, 2020
Spot Forwards FX Options Spot Forwards FX Options
Foreign exchange rate risk
Foreign exchange (FX) rate risk is the risk that the Bank may suffer losses as a result of adverse PV01 (102) (153) 0.00 0.00 48.02 0.00
exchange rate movements during a period in which it has an open position in a currency. Where
Liquidity Risk
the value of asset/inflow exposures in one currency is not equal to the value of liability/outflow
exposures in that currency, it is described as an open position. It may be short (liabilities exceed
Liquidity risk management overview
assets) or long (assets exceed liabilities).
Liquidity risk is the risk that the Bank’s financial condition or overall safety and soundness is
adversely affected by an inability (or perceived inability) to meet its obligations and may result in
The Bank controls its FX exposures by transacting in permissible currencies. Management of FX risk
the Bank incurring unacceptable losses. The Bank’s obligations and the funding sources used to
is done via monitoring of FX NOP and PV01 for those FX positions in the trading book. If the level
meet them, depend significantly on its business mix, its balance sheet structure and the cash flow
reaches the trigger point, action is required to bring back the level to within the normal range. FX
profile of its on- and off-balance sheet obligations.
risk is reviewed together with other risks to determine the Bank’s overall risk profile.

The Non-Trading Book Policy, which includes policies on liquidity risk management, is reviewed The Bank also conducts CFP tests to ensure the effectiveness and operational feasibility of the CFP.
regularly and tabled to ALCO and RMC. The Bank’s liquidity risk position is actively discussed and The key aspects of the testing are to focus on the preparedness of key senior management and their
managed at the ALCO and RMC in line with the approved guidelines and policies. respective alternate in handling a simulated distress funding situation. It also provides exposure
and develops capabilities on how to respond to a liquidity crisis situation and operate effectively
The Bank, in line with the Bank, has implemented leading practices as a foundation to manage and with each other under challenging circumstances.
measure its liquidity risk exposure. The Bank uses a range of tools to monitor and control liquidity
risk exposure such as liquidity gap, early warning signals/liquidity indicators and stress testing. The Analysis of financial assets and financial liabilities by remaining contractual maturities
liquidity positions of the Bank are monitored regularly against the established policies, procedures The tables below show the maturity profile of the Bank’s financial assets and financial liabilities
and thresholds. based on contractual undiscounted cash flows (amount in thousands).
Management of liquidity risk December 31, 2021

For day to day liquidity management, Global Markets will ensure sufficient funding to meet the
Up to 1 1 to 3 3 to 6 6 to 12 Beyond
Bank’s intraday payment and settlement obligations on a timely basis. In addition, the process of
Month Months Months Months 1 year Total
managing liquidity risk includes:
Financial Assets
• Maintaining an adequate portfolio that can easily be liquidated as protection against any Cash and other cash items P1,757,511 P– P– P– P– P1,757,511
unforeseen interruption in cashflows; Due from BSP 16,672,809 – – – – 16,672,809
• Maintaining a stable funding to support illiquid assets and business activities; Due from other banks 2,313,028 – – – – 2,313,028
• Daily and monthly monitoring of liquidity ratios against internal and regulatory requirements; Interbank loans receivable
• Monthly monitoring of gaps arising from mismatched maturity of assets and liabilities; and SPURA 6,270,855 – – – – 6,270,855
• Monthly monitoring and managing of concentration ratios of deposits;
Financial assets at FVPL:
• Conducting monthly liquidity stress testing under various scenarios as part of prudent
liquidity control; Government securities 3,902,000 – – – – 3,902,000
• Maintaining a robust contingency funding plan that includes strategies, decision-making Derivative assets 139,557 79,263 1,477 10,667 99,991 330,955
authorities, internal and external communication and courses of action to be taken under Financial assets at FVOCI:
different liquidity crisis scenarios; and Debt instruments
• Conducting Contingency Funding Plan (CFP) testing to examine the effectiveness and
Government 2,016,638 34,035 51,052 635,049 6,053,432 8,790,206
robustness of the plans.
Private 2,383 4,766 7,149 348,058 134,669 497,025
Liquidity coverage ratio and Net stable funding ratio Equity
The Bank monitors its LCR and NSFR on a daily basis; joint management and monitoring are carried Quoted – – – – 8,761 8,761
out by Global Markets and Group Finance. Unquoted – – – – 15,184 15,184
Financial assets at
Stress testing and Contingency funding plan
amortized cost:
The Bank uses stress testing and scenario analysis to evaluate the impact of sudden stress events
on liquidity position. Scenarios are based on hypothetical events that include bank specific crisis Government 1,288,670 569,480 130,420 1,431,901 6,001,340 9,421,811
and general market crisis scenarios. The stress test result provides an insight of the Bank’s funding Private 7,725 15,450 32,122 46,085 2,018,004 2,119,386
requirements during different levels of stress environments and is closely linked to the Bank’s CFP, Loans and receivables:
which provides a systemic approach in handling any unexpected liquidity disruptions. The plan Receivables from:
encompasses strategies, decision-making authorities, internal and external communication and
Corporate 2,792,296 1,605,739 840,361 669,348 7,667,938 13,575,682
courses of action to be taken under different liquidity crisis scenarios.
Commercial 1,007,874 633,272 321,576 547,419 1,648,554 4,158,695
Consumer:
Auto loans 1,186,839 1,972,706 2,799,874 4,936,085 14,675,367 25,570,871
Housing loans 155,487 307,642 460,345 911,889 15,524,269 17,359,632
Others 714,104 35,658 43,817 63,125 153,307 1,010,011
40,227,776 5,258,011 4,688,193 9,599,626 54,000,816 113,774,422
December 31, 2021 December 31, 2020

Up to 1 1 to 3 3 to 6 6 to 12 Beyond Up to 1 1 to 3 3 to 6 6 to 12 Beyond
Month Months Months Months 1 year Total Month Months Months Months 1 year Total
Sales contract receivable: Financial Assets
Corporate 28 – – 734 319,079 319,841 Cash and other cash
items P1,318,048 P– P– P– P– P1,318,048
Individual 3,201 – 92 505 34,526 38,324
Due from BSP 11,740,622 – – – – 11,740,622
3,229 – 92 1,239 353,605 358,165
Due from other banks 4,080,555 – – – – 4,080,555
Accounts receivable: Interbank loans
Corporate 366,871 8,075 28,915 70,796 679,682 1,154,339 receivable 946,563 – – – – 946,563
Individual 19,473 1,743 1,794 1,815 6,007 30,832 Financial assets at
386,344 9,818 30,709 72,611 685,689 1,185,171 FVPL:
RCOCI 227 – – – – 227 Government
P40,617,576 P5,267,829 P4,718,994 P9,673,476 P55,040,110 P115,317,985 securities 1,001,032 2,672 344 2,032,810 930,326 3,967,184
Derivative assets 51,378 25,097 36,506 16,318 107,564 236,863
Financial assets at
Financial Liabilities
FVOCI:
Deposit liabilities: Debt instrument
Demand P26,990,507 P− P− P− P− P26,990,507 Government 645,938 234,432 444,882 1,006,971 5,344,916 7,677,139
Savings 21,473,417 848,150 70,132 13,262 − 22,404,961 Private debt
Time 8,519,162 3,683,250 2,164,384 2,116,037 6,678,204 23,161,037 securities – – – – 526,016 526,016
56,983,086 4,531,400 2,234,516 2,129,299 6,678,204 72,556,505 Equity
Financial liabilities at Quoted – – – – 8,761 8,761
FVPL: Unquoted – – – – 15,384 15,384
Interest rate swaps 1,231 449 790 6,854 110,332 119,656 Financial assets at
Forward contracts 77 − − − − 77 amortized cost:
Non-deliverable Government 950,855 115,000 79,000 146,885 4,571,716 5,863,456
swaps 89,158 10,704 − − − 99,862 Private 23,178 186,741 529,576 732,375 2,079,695 3,551,565
Bills payable 11,380,607 − − − − 11,380,607 Loans and receivables:
Receivables from:
Manager’s checks 501,202 − − − − 501,202
Corporate 3,203,832 3,220,677 1,106,318 515,448 10,961,775 19,008,050
Accrued interest payable 6,202 9,511 33,962 9,116 36,210 95,001
Commercial 1,061,867 732,660 246,294 314,977 603,564 2,959,362
Accounts payable 640,233 − − − − 640,233
Consumer:
Subordinated debt − − 28,722 83,722 2,557,944 2,670,388 Auto loans 1,289,529 2,415,742 3,478,148 6,328,816 20,042,171 33,554,406
Due to Treasurer of the Housing loans 151,763 302,433 452,674 897,914 15,622,581 17,427,365
Philippines − − − − 23,629 23,629
Others 892,388 10,909 34,710 162,350 519,828 1,620,185
12,618,710 20,664 63,474 99,692 2,728,115 15,530,655 27,357,548 7,246,363 6,408,452 12,154,864 61,334,297 114,501,524
Contingent liabilities 565,684 630,595 945,052 135,936 80,587 2,357,854
P70,167,480 P5,182,659 P3,243,042 P2,364,927 P9,486,906 P90,445,014 (Forward)

December 31, 2020

5. Fair Value Measurement
Up to 1 1 to 3 3 to 6 6 to 12 Beyond
Month Months Months Months 1 year Total The following table provides the fair value hierarchy of the Bank’s assets and liabilities measured at
Sales contract fair value and those for which fair values are required to be disclosed:
receivable:
Individual 1 2 2 5 318,580 318,590
December 31, 2021
Corporate 160 309 392 1,770 36,307 38,938
Fair Value
161 311 394 1,775 354,887 357,528
Quoted prices Significant Significant
Accounts receivable:
in active observable unobservable
Corporate 406,733 67,890 631,948 3,113 2,715 1,112,399 Carrying market inputs inputs
Individual 12,977 749 838 647 348 15,559 value (Level 1) (Level 2) (Level 3) Total
419,710 68,639 632,786 3,760 3,063 1,127,958 Assets measured at fair value
RCOCI 339 – – – – 339 Financial assets
P27,777,758 P7,315,313 P7,041,632 P12,160,399 P61,692,247 P115,987,349 Financial assets at FVTPL:
HFT investments:
Government securities P3,902,000,000 P3,902,000,000 P– P– P3,902,000,000
Deposit liabilities:
Derivative assets 330,955,397 – 330,955,397 – 330,955,397
Demand P25,751,395 P− P− P− P− P25,751,395
Savings 23,089,697 1,038,238 10,926 14,044 − 24,152,905 Financial assets at FVOCI:
Time 13,901,840 1,233,695 2,845,337 3,053,860 9,815,654 30,850,386 Government securities 8,100,604,588 8,100,604,588 – – 8,100,604,588
62,742,932 2,271,933 2,856,263 3,067,904 9,815,654 80,754,686 Private debt securities 472,241,570 472,241,570 – – 472,241,570
Financial liabilities at Quoted equity securities 8,761,382 8,761,382 – – 8,761,382
FVPL: Unquoted equity securities 15,383,600 − – 15,383,600 15,383,600
Interest rate swaps 690 812 5,167 15,279 94,121 116,069 12,829,946,537 12,483,607,540 330,955,397 15,383,600 12,829,946,537
CIRS − − − − 22,185 22,185 Assets for which fair values
Forward contracts 17,899 7,786 − − − 25,685 are disclosed
FX Corp 634 − − − 634 Financial assets
Bills payable 2,209,058 − − − − 2,209,058 Investment securities at
Manager’s checks 375,476 − − − − 375,476 amortized cost:
Accrued interest Government securities 8,614,260,140 8,769,601,783 – – 8,769,601,783
payable 13,472 3,973 35,897 34,027 37,831 125,200 Private debt securities 1,828,185,402 1,889,531,530 – – 1,889,531,530
Accounts payable 939,288 − − − − 939,288 10,442,445,542 10,659,133,313 – – 10,659,133,313
Subordinated debt − − 28,722 55,917 2,669,472 2,754,111 Loans and receivables
Due to Treasurer of the
Receivable from customers:
Philippines − − − − 16,062 16,062
Corporate lending 9,974,922,630 − − 11,053,116,102 11,053,116,102
3,555,883 13,205 69,786 105,223 2,839,671 6,583,768
Contingent liabilities 551,409 821,060 1,379,661 154,897 13,710 2,920,737 Commercial lending 2,787,092,634 − − 3,097,883,629 3,097,883,629
P66,850,224 P3,106,198 P4,305,710 P3,328,024 P12,669,035 P90,259,191 Consumer lending 33,855,681,808 − − 38,341,788,497 38,341,788,497
46,617,697,072 − − 52,492,788,228 52,492,788,228
Non-financial assets
Investment properties 1,163,016,303 − − 1,502,150,585 1,502,150,585
Total assets P71,053,105,454 P23,142,740,853 P330,955,397 P54,010,322,413 P77,484,018,663
Fair Value Fair Value
Quoted prices Significant Significant Quoted prices Significant Significant
in active observable unobservable in active observable unobservable
Carrying market inputs inputs Carrying market inputs inputs
value (Level 1) (Level 2) (Level 3) Total value (Level 1) (Level 2) (Level 3) Total
Liabilities measured at fair Loans and receivables
value
Receivable from customers:
Financial liabilities
Corporate lending 14,158,973,785 − − 16,478,319,660 16,478,319,660
Derivative liabilities P219,594,198 P− P219,594,198 P− P219,594,198
Commercial lending 2,586,051,320 − − 2,740,670,224 2,740,670,224
Liabilities for which fair values
are disclosed Consumer lending 40,296,500,078 − − 46,281,751,802 46,281,751,802
Financial liabilities 57,041,525,183 − − 65,500,741,686 65,500,741,686
Time deposits 22,384,636,615 – – 22,384,636,615 22,384,636,615 Non-financial assets
Bills payable 11,372,777,000 – – 11,372,777,000 11,372,777,000 Investment properties 1,093,826,992 − − 1,846,010,751 1,846,010,751
Subordinated debt 1,993,568,187 – – 2,042,418,945 2,042,418,945 Total assets 78,393,451,377 19,896,296,423 136,900,765 67,362,136,037 87,395,333,225
Total liabilities P35,970,576,000 P– P219,594,198 P35,799,832,560 P36,019,426,758 Liabilities measured at fair value
Financial liabilities
December 31, 2020 Derivative liabilities P164,574,417 P− P164,574,417 P− P 164,574,417
Fair Value Liabilities for which fair values
are disclosed
Quoted prices Significant Significant
in active observable unobservable Financial liabilities
Carrying market (Level inputs inputs Time deposits 30,632,736,132 – – 30,632,736,132 30,632,736,132
value 1) (Level 2) (Level 3) Total Bills payable 2,209,058,000 – – 2,209,058,000 2,209,058,000
Assets measured at fair value Subordinated debt 1,992,648,990 – – 2,138,880,446 2,138,880,446
Financial assets Total liabilities P34,999,017,539 P– P164,574,417 P34,980,674,578 P35,145,248,995
Financial assets at FVTPL:
HFT investments:
In 2021 and 2020, there were no transfers between Level 1 and Level 2 fair value measurements, and
Government securities P3,651,217,844 P3,651,217,844 P– P– P3,651,217,844 no transfers into and out of Level 3 fair value measurements.
Derivative assets 136,900,765 – 136,900,765 – 136,900,765
Financial assets at FVOCI: The methods and assumptions used by the Bank in estimating the fair value of the financial
Government securities 7,329,134,155 7,329,134,155 – – 7,329,134,155 instruments are:
Private debt securities 472,933,228 472,933,228 – – 472,933,228
COCI, due from BSP and other banks, IBLR and SPURA – The carrying amounts approximate fair values
Quoted equity securities 8,761,382 8,761,382 – – 8,761,382 due to the short-term nature of these accounts. IBLR consists mostly of overnight deposits and
Unquoted equity securities 15,383,600 − 15,383,600 15,383,600 floating rate placements.
11,614,330,974 11,462,046,609 136,900,765 15,383,600 11,614,330,974
Assets for which fair values Trading and investment securities – Fair values of debt securities (financial assets at FVPL and AFS
are disclosed investments and financial investments at FVOCI) and equity investments are generally based on
Financial assets quoted market prices. Where the government debt securities are not quoted or the market prices
Investment securities at amortized cost:
are not readily available, the fair value is determined in reference to interpolated PH BVAL reference
rates provided by the Philippine Dealing and Exchange Corporation (PDEx). For equity investments
Government securities 5,734,325,494 4,582,215,028 – – 4,582,215,028 that are not quoted, the investments are carried at cost less allowance for impairment losses due to
Private debt securities 2,909,442,734 3,852,034,786 – – 3,852,034,786 the lack of suitable methods of arriving at a reliable fair value.
8,643,768,228 8,434,249,814 – – 8,434,249,814
(Forward)

Derivative instruments – Fair values of derivative instruments, mainly forward foreign exchange Location Location of comparative properties whether on a main road, or
contracts, are valued using a valuation technique with market observable inputs. The most secondary road. Road width could also be a consideration if data is
frequently applied valuation technique is forward pricing, which uses present value calculations. available. As a rule, properties located along a main road are superior
The model incorporates various inputs including the foreign exchange rates and interest rate curves to properties located along a secondary road.
prevailing at the reporting date. Time Element An adjustment for market conditions is made if general property
values have appreciated or depreciated since the transaction dates
Loans and receivables – Fair values of loans and receivables are estimated using the discounted cash due to inflation or deflation or a change in investors’ perceptions of
flow methodology, using the Bank’s current lending rates for similar types of loans and receivables the market over time. In which case, the current data is superior to
ranging from 2.99% to 30.61% in 2021 and 2.99% to 33.13% in 2020. Where the instrument reprices on historic data.
a periodical basis or has a relatively short maturity, the carrying amounts approximated fair values.
Discount Generally, asking prices in ads posted for sale are negotiable.
Discount is the amount the seller or developer is willing to deduct
Investment properties – The fair values of Bank’s investment properties have been determined by
from the posted selling price if the transaction will be in cash or
the appraisal method by independent external and in-house appraisers based on highest and best
equivalent.
use of property being appraised. Valuations were derived on the basis of recent sales of similar
properties in the same areas as the investment properties and taking into account the economic Corner influence Bounded by two (2) roads.
conditions prevailing at the time the valuations were made and comparability of similar properties
sold with the property being valued. Significant unobservable inputs in determining fair values Liabilities – The fair values of liabilities approximate their carrying amounts due to either the
include the following: demand nature or the relatively short-term maturities of these liabilities except for time deposit
liabilities and subordinated debt whose fair values are estimated using the discounted cash flow
methodology using the Bank’s incremental borrowing rates for similar borrowings ranging from
Valuation Techniques Significant Unobservable Inputs
0.1% to 8.5% with maturities consistent with those remaining for the liability being valued.
Price per square meter, size,
Land Market data approach location, shape, time element
and corner influence 6. Financial Assets at Fair Value Through Profit or Loss
Market data approach for
building and condominium for This account consists of:
Land and building Reproduction cost new
sale/lease and cost approach
method for land improvements
2021 2020
Government securities P3,902,000,000 P3,651,217,844
Derivative assets (Note 17) 330,955,397 136,900,765
Significant Unobservable Inputs P4,232,955,397 P3,788,118,609
Reproduction cost new The cost to create a virtual replica of the existing structure, employing
the same design and similar building materials.
As of December 31, 2021 and 2020, financial assets at FVPL include net unrealized gain of
Size Size of lot in terms of area. Evaluate if the lot size of property or P592.1 million and net unrealized loss of P142.9 million, respectively.
comparable conforms to the average cut of the lots in the area and
estimate the impact of lot size differences on land value. Effective interest of government securities ranges from 1.80% to 1.94% and 1.57% to 4.88% in 2021
Shape Particular form or configuration of the lot. A highly irregular shape and 2020, respectively.
limits the usable area whereas an ideal lot configuration maximizes
the usable area of the lot which is associated in designing an Interest income on financial assets at FVPL amounted to P54.4 million and P322.8 million in 2021
improvement which conforms with the highest and best use of the and 2020, respectively.
property.
7. Financial Assets at Fair Value Through Other Comprehensive Income Peso-denominated bonds have effective interest rates ranging from 1.60% to 6.64% and from 2.37% to
6.64% in 2021 and 2020, respectively. Foreign currency-denominated bonds have effective interest rates
This account consists of: ranging from 1.0% to 5.53% and from 2.9% to 5.53% in 2021 and 2020, respectively.
Interest income from financial assets held at amortized cost amounted to P346.7 million and
2021 2020
P548.6 million in 2021 and 2020, respectively.
Debt instruments:
Government securities P8,100,604,588 P7,329,134,155
Private 472,241,570 472,933,228 9. Loans and Receivables
8,572,846,158 7,802,067,383
This account consists of:
Quoted equity instruments 8,761,382 8,761,382
Unquoted equity instruments 15,383,600 15,383,600
P8,596,991,140 P7,826,212,365 2021 2020
Receivables from customers:
The movements in net unrealized gain (loss) on financial investments at FVOCI follow: Corporate P11,267,821,090 P14,999,825,810
Commercial 3,249,682,334 2,758,403,344
2021 2020 Consumer:
Balance at beginning of year P105,387,149 P22,257,243 Auto loans 22,428,221,182 28,943,738,619
(Gains)/losses taken to profit and loss 1,240 (57,582,083) Housing loans 11,672,459,167 11,550,083,546
Changes in fair value recognized in equity (215,964,055) 170,718,530 Others 950,139,948 1,274,994,082
Expected credit losses 3,088,516 7,515,394 49,568,323,721 59,527,045,401
(107,487,150) 142,909,084 Less: unearned discounts and other deferred income 29,979,628 23,526,669
Tax effect 57,152,890 (37,521,935) 49,538,344,093 59,503,518,732
Balance at end of year (P50,334,260) P105,387,149 Accounts receivable:
Corporate (Note 28) 1,135,810,639 1,113,548,527
Interest income from FVOCI investments in 2021 and 2020 amounted to P281.9 million and
Individual 9,974,954 13,527,087
P120.5 million, respectively.
1,145,785,593 1,127,075,614
Peso-denominated financial instruments at FVOCI have effective interest rates ranging from 1.69% Accrued interest receivable (Note 28) 1,021,694,647 1,689,704,011
to 6.49% and 1.70% to 6.49%in 2021 and 2020, respectively. Foreign currency-denominated Sales contract receivable:
financial instruments at FVOCI bear interest of 1.39% to 2.85% and 1.11% to 3.12% in 2021 and 2020, Corporate 316,756,819 318,576,952
respectively.
Individual 38,197,906 33,023,261
354,954,725 351,600,213
8. Investment Securities at Amortized Cost
RCOCI 276,516 328,684
This account consists of: 52,061,055,574 62,672,227,254
Less: allowance for credit losses 3,960,104,724 4,105,441,531
2021 2020 P48,100,950,850 P58,566,785,723
Government securities (Note 26) P8,616,811,153 P5,744,497,972
Private debt securities 1,872,300,450 2,913,165,000
10,489,111,603 8,657,662,972
Allowance for credit losses (46,666,061) (13,894,744)
P10,442,445,542 P8,643,768,228

Receivables from customers consist of: Changes in the staging assessment of loans receivable are presented below (amounts in thousands):
2021 2020 December 31, 2021

Loans and discounts P44,858,117,684 P54,543,273,047 Stage 1 Stage 2 Stage 3 Total
Customers’ liabilities and other loans 3,662,174,930 4,524,972,540 Corporate loans
Restructured loans 1,018,422,855 435,599,814 Gross carrying amount as at December 31, 2020 P11,968,632 P1,649,554 P1,381,640 P14,999,826
Bills purchased (Note 16) 29,608,252 23,200,000 New assets originated or purchased that remained
3,790,552 – – 3,790,552
P49,568,323,721 P59,527,045,401 at Stage 1 as at December 31, 2021
Newly originated assets that moved to Stages 2
– 1,035,557 152,585 1,836,142
and 3 as at December 31, 2021
Modification of Loans and Receivables Effect of collections and other movements
(7,380,807) (1,209,641) (768,251) (9,358,699)
in receivable balance
On March 25, 2020, Republic Act No. 11469, otherwise known as the Bayanihan to Heal as One Transfers to Stage 1 996,617 (401,845) (594,772) –
Act (“Bayanihan 1 Act”) was enacted. Bayanihan 1 Act provides that all covered institutions shall Transfers to Stage 2 (527,919) 546,537 (18,618) –
implement a 30-day grace period for all loans with principal and/or interest and lease amortization
Transfers to Stage 3 (364,007) (37,685) 401,692 –
falling due within the enhanced community quarantine (ECQ) period without incurring interest on
interest, penalties, fees and other charges. Subsequently, on September 11, 2020, Republic Act No. At December 31, 2021 8,483,068 1,582,477 1,202,276 11,267,821
11494, otherwise known as the Bayanihan to Recover as One Act (“Bayanihan 2 Act”), was enacted.
Under Bayanihan 2 Act, a one-time 60-day grace period is granted for the payment of all existing, Commercial loans
current and outstanding loans falling due, or any part thereof, on or before December 31, 2020, Gross carrying amount as at December 31, 2020 P2,368,629 P247,620 P142,154 P2,758,403
without incurring interest on interests, penalties, fees, or other charges and thereby extending the
New assets originated or purchased that remained
maturity of the said loans. 1,973,497 – – 1,973,497
at Stage 1 as at December 31, 2021
In 2020, the Bank, in addition to the reliefs provided under Bayanihan 1 Act and Bayanihan 2 Act, Newly originated assets that moved to Stages 2
– 72,077 35,288 107,365
offered financial reliefs to its borrowers or counterparties as a response to the effect of the COVID-19 and 3 as at December 31, 2021
pandemic, particularly the modification of existing loans and receivables which include extension of Effect of collections and other movements
(1,656,896) 186,970 (80,107) (1,550,033)
payment terms. in receivable balance
Write-offs – – (39,550) (39,550)
Based on the Bank’s assessments, the modifications in the contractual cash flows as a result of the Transfers to Stage 1 37,371 (25,615) (11,756) –
above reliefs are not substantial and, therefore, do not result in the derecognition of the affected Transfers to Stage 2 (161,918) 161,918 – –
financial assets but would require the recognition of modification losses. The total modification
losses amounted to P315.0 million. The net impact of the loan modification as of December 31, 2021
and 2020, after subsequent accretion of the modified loans, amounted to P127.3 million and At December 31, 2021 2,326,067 234,891 688,724 3,249,682
P185.9 million, respectively.
(Forward)

Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Auto loans Corporate loans
Gross carrying amount as at December 31, 2020 22,693,305 3,808,550 2,441,883 28,943,738 Gross carrying amount as at December 31, 2019 P18,412,306 P529,612 P893,164 P19,835,082
New assets originated or purchased that remained New assets originated or purchased that remained
5,442,656 – – 5,442,656
at Stage 1 as at December 31, 2021 at Stage 1 as at December 31, 2020 4,490,224 – – 4,490,224
Newly originated assets that moved to Stages 2 Newly originated assets that moved to Stages 2
– 281,234 85,880 367,114
and 3 as at December 31, 2021 and 3 as at December 31, 2020 – 987,818 168,209 1,156,027
Effect of collections and other movements Effect of collections and other movements
(9,464,423) (1,435,673) (1,135,380) (12,035,477)
in receivable balance in receivable balance (9,714,862) (62,943) (509,548) (10,287,353)
Write-offs – – (289,810) (289,810) Write-offs – – (194,154) (194,154)
Transfers to Stage 1 2,459,994 (1,718,520) (741,474) – Transfers to Stage 1 (195,067) 195,067 – –
Transfers to Stage 2 (2,166,218) 2,324,205 (157,987) – Transfers to Stage 3 (1,023,969) – 1,023,969 –
Transfers to Stage 3 (1,457,544) (264,107) 1,721,651 – At December 31, 2020 11,968,632 1,649,554 1,381,640 14,999,826
At December 31, 2021 17,507,770 2,995,688 1,924,763 22,428,221 Commercial loans
Housing loans Gross carrying amount as at December 31, 2019 3,093,369 54,797 175,755 3,323,921
Gross carrying amount as at December 31, 2020 9,452,561 1,423,601 673,922 11,550,084 New assets originated or purchased that remained
at Stage 1 as at December 31, 2020 2,151,258 – – 2,151,258
New assets originated or purchased that remained
1,840,267 1,840,267 Newly originated assets that moved to Stages 2
at Stage 1 as at December 31, 2021
− − and 3 as at December 31, 2020 – 204,585 2,169 206,754
Newly originated assets that moved to Stages 2 Effect of collections and other movements
– 14,783 13,841 28,624
and 3 as at December 31, 2021 in receivable balance (2,789,386) (31,781) (19,392) (2,840,559)
Effect of collections and other movements Write-offs – – (82,971) (82,971)
(1,583,730) (101,808) (60,978) (1,746,516)
in receivable balance Transfers to Stage 1 1,733 (1,733) – –
Transfers to Stage 1 1,636,179 (1,116,585) (519,594) – Transfers to Stage 2 (32,528) 32,528 – –
Transfers to Stage 2 (993,801) 1,066,138 (72,337) – Transfers to Stage 3 (55,817) (10,776) 66,593 –
Transfers to Stage 3 (368,515) (41,799) 410,314 – At December 31, 2020 2,368,629 247,620 142,154 2,758,403
At December 31, 2021 9,982,961 1,244,330 445,168 11,672,459 Auto loans
Others Gross carrying amount as at December 31, 2019 31,364,344 2,852,510 766,986 34,983,840
Gross carrying amount as at December 31, 2020 1,125,632 41,347 108,015 1,274,994 New assets originated or purchased that remained
New assets originated or purchased that remained at Stage 1 as at December 31, 2020 5,862,665 – – 5,862,665
73,129 – – 73,129
at Stage 1 as at December 31, 2021 Newly originated assets that moved to Stages 2
Newly originated assets that moved to Stage 2 and 3 as at December 31, 2020 – 379,427 161,575 541,002
– 1,962 1,391 3,353
and Stage 3 as at December 31, 2021 Effect of collections and other movements
Effect of collections and other movements in receivable balance (9,725,528) (1,856,860) (563,648) (12,146,036)
(334,930) (25,230) 144,689 (215,471)
in receivable balance Write-offs – – (297,733) (297,733)
Write-offs – – (185,865) (185,865) Transfers to Stage 1 472,548 (468,467) (4,081) –
Transfers to Stage 1 17,338 (13,070) (4,268) – Transfers to Stage 2 (3,753,072) 3,758,885 (5,813) –
Transfers to Stage 2 (14,229) 46,876 (32,647) – Transfers to Stage 3 (1,527,652) (856,945) 2,384,597 –
Transfers to Stage 3 (10,932) (2,257) 13,189 – At December 31, 2020 22,693,305 3,808,550 2,441,883 28,943,738
At December 31, 2021 P856,008 P49,628 P44,504 P950,140
(Forward)


Housing loans Commercial loans
Gross carrying amount as at December 31, 2019 10,849,594 828,742 93,535 11,771,871 Balance at beginning of the year 6,089 106,169 55,147 167,405
New assets originated or purchased that remained New assets originated or purchased that
6,332 – – 6,332
at Stage 1 as at December 31, 2020 940,014 − − 940,014 remained at Stage 1 as at December 31, 2021
Newly originated assets that moved to Stages 2 Newly originated assets that moved to Stages 2
– 29,888 35,647 65,535
and 3 as at December 31, 2020 – 17,280 12,049 29,329 and 3 as at December 31, 2021
Effect of collections and other movements Effect of collections and other movements
221,443 47,021 (5,744) 262,720
in receivable balance (952,653) (171,620) (66,857) (1,191,130) in receivable balance
Transfers to Stage 1 186,130 (185,541) (589) – Write-offs – – (39,550) (39,550)
Transfers to Stage 2 (1,172,901) 1,172,901 – – Transfers to Stage 1 99 (99) – –
Transfers to Stage 3 (397,623) (238,161) 635,784 – Transfers to Stage 2 (95,238) 95,238 – –
At December 31, 2020 9,452,561 1,423,601 673,922 11,550,084 Transfers to Stage 3 (130,539) (153,092) 283,631 –
Others At December 31, 2021 8,186 125,125 329,131 462,442
Gross carrying amount as at December 31, 2019 1,891,922 61,174 56,037 2,009,133 Auto loans
New assets originated or purchased that remained Balance at beginning of the year 590,044 695,384 806,502 2,091,930
at Stage 1 as at December 31, 2020 114,822 – – 114,822 New assets originated or purchased that remained at
Newly originated assets that moved to Stage 2 and 132,689 – – 132,689
Stage 1 as at December 31, 2021
Stage 3 as at December 31, 2020 – 4,100 4,535 8,635 Newly originated assets that moved to Stages 2 and 3
Effect of collections and other movements in – 63,188 27,390 90,578
as at December 31, 2021
receivable balance (756,976) (55,768) 155,408 (657,336) Effect of collections and other movements in
396,981 (512,847) (438,487) (554,353)
Write-offs – – (200,260) (200,260) receivable balance
Transfers to Stage 1 1,328 (598) (730) – Write-offs (289,810) (289,810)
Transfers to Stage 2 (37,054) 37,054 – – Transfers to Stage 1 36,767 (25,837) (10,931) –
Transfers to Stage 3 (88,410) (4,615) 93,025 – Transfers to Stage 2 (325,081) 350,266 (25,185) –
At December 31, 2020 P1,125,632 P41,347 P108,015 P1,274,994 Transfers to Stage 3 (521,119) (93,292) 614,411 –
At December 31, 2021 310,281 476,862 683,891 1,471,034
Movement of ECL during the year is presented in the table below:
Housing loans
December 31, 2021 Balance at beginning of the year 188,806 157,076 198,755 544,637
Stage 1 Stage 2 Stage 3 Total New assets originated or purchased that remained at
Corporate loans 43,772 – – 43,772
Stage 1 as at December 31, 2021
Balance at beginning of the year P119,400 P140,845 P722,946 P983,191 Newly originated assets that moved to Stages 2 and
– 1,537 4,078 5,615
New assets originated or purchased that remained Stage 3 as at December 31, 2021
33,820 – – 33,820
at Stage 1 as at December 31, 2021 Effect of collections and other movements in
99,177 (112,823) (177,169) (190,815)
Newly originated assets that moved to Stages 2 receivable balance
– 44,602 811,422 856,024
and 3 as at December 31, 2021 Transfers to Stage 1 28,800 (18,812) (9,988) –
Effect of collections and other movements Transfers to Stage 2 (72,454) 77,760 (5,306) –
306,632 (100,190) (724,576) (518,134)
in receivable balance Transfers to Stage 3 (112,180) (12,385) 124,565 –
Transfers to Stage 1 605 (2,879) 2,274 – At December 31, 2021 175,921 92,353 134,935 403,209
Transfers to Stage 2 (23,552) 24,196 (644) –
At December 31, 2021 67,281 68,804 1,218,816 1,354,901
(Forward)
Others Auto loans
Balance at beginning of the year 98,846 43,412 96,146 238,404 Balance at beginning of the year 284,345 225,022 301,045 810,412
New assets originated or purchased that remained at New assets originated or purchased that remained at
2,078 – – 2,078
Stage 1 as at December 31, 2021 Stage 1 as at December 31, 2020 183,486 – – 183,486
Newly originated assets that moved to Newly originated assets that moved to Stages 2 and 3
– 112 1,246 1,358
Stages 2 and 3 as at December 31, 2021 as at December 31, 2020 – 84,229 53,351 137,580
Effect of collections and other movements in Effect of collections and other movements in
1,459 (40,803) 160,435 121,091
receivable balance receivable balance 170,038 429,150 658,997 1,258,185
Write-offs – – (217,275) (217,275) Write-offs – – (297,733) (297,733)
Transfers to Stage 1 358 (253) (105) – Transfers to Stage 1 30,360 (29,066) (1,294) –
Transfers to Stage 2 (3,402) 21,562 (18,159) – Transfers to Stage 2 (51,158) 52,991 (1,833) –
Transfers to Stage 3 (10,532) (2,221) 12,753 – Transfers to Stage 3 (27,027) (66,942) 93,969 –
At December 31, 2021 P88,807 P21,808 P35,041 P145,656 At December 31, 2020 590,044 695,384 806,502 2,091,930
Housing loans
December 31, 2020 Balance at beginning of the year 95,931 70,549 27,125 193,605
Stage 1 Stage 2 Stage 3 Total New assets originated or purchased that remained at
Corporate loans Stage 1 as at December 31, 2020 21,785 – – 21,785
Balance at beginning of the year P250,268 P11,430 P526,147 P787,845 Newly originated assets that moved to Stage 2 and
New assets originated or purchased that Stage 3 as at December 31, 2020 – 3,278 3,558 6,836
remained at Stage 1 as at December 31, 2020 67,749 – – 67,749 Effect of collections and other movements in
Newly originated assets that moved to receivable balance 80,891 101,410 140,110 322,411
Stages 2 and 3 as at December 31, 2020 – 81,592 168,209 249,801 Transfers to Stage 1 12,648 (12,475) (173) –
Effect of collections and other movements Transfers to Stage 2 (15,959) 15,959 – –
in receivable balance (174,020) 45,837 200,133 71,950 Transfers to Stage 3 (6,490) (21,645) 28,135 –
Write-offs – – (194,154) (194,154) At December 31, 2020 188,806 157,076 198,755 544,637
Transfers to Stage 2 (1,986) 1,986 – – Others
Transfers to Stage 3 (22,611) – 22,611 – Balance at beginning of the year 151,453 46,072 41,921 239,446
At December 31, 2020 119,400 140,845 722,946 983,191 New assets originated or purchased that remained at
Commercial loans Stage 1 as at December 31, 2020 4,978 – – 4,978
Balance at beginning of the year 23,569 3,195 116,188 142,952 Newly originated assets that moved to Stages 2 and 3
New assets originated or purchased that as at December 31, 2020 – 623 4,452 5,075
remained at Stage 1 as at December 31, 2020 5,356 – – 5,356 Effect of collections and other movements in
Newly originated assets that moved to receivable balance (51,781) (3,494) 244,440 189,165
Stages 2 and 3 as at December 31, 2020 – 104,587 1,933 106,520 Write-offs – – (200,260) (200,260)
Effect of collections and other movements Transfers to Stage 1 741 (122) (619) –
in receivable balance (22,351) (1,198) 19,097 (4,452) Transfers to Stage 2 (1,904) 1,904 – –
Write-offs – – (82,971) (82,971) Transfers to Stage 3 (4,641) (1,571) 6,212 –
Transfers to Stage 2 (102) 102 – – At December 31, 2020 P98,846 P43,412 P96,146 P238,404
Transfers to Stage 3 (383) (517) 900 –
At December 31, 2020 6,089 106,169 55,147 167,405 As of December 31, 2021 and 2020, allowance for credit losses on accounts receivable and sales
contract receivable amounted to P122.9 million and P79.9 million, respectively.
(Forward)

Interest income on loans and receivables consists of:

10. Property and Equipment
2021 2020 The composition of and movements in this account follow:
Loans and discounts P4,099,389,075 P5,080,953,542
Customers’ liabilities and other loans 108,320,377 140,465,713 December 31, 2021
Restructured loans 58,756,867 3,733,594 Furniture,
Accounts receivable – PPI (Note 28) 15,736,226 22,580,428 Condominium Fixtures and Leasehold
Sales contract receivable 6,407,684 3,320,531 Units Equipment Improvements Total
P4,288,610,229 P5,251,053,808 Cost
Balances at beginning of year P262,553,193 P899,623,651 P576,850,365 P1,739,027,209
Additions – 36,574,108 16,341,248 52,915,356
Of the total peso-denominated loans of the Bank as of December 31, 2021 and 2020, 45.56% and Disposals/write-off – (206,690,970) (46,445,397) (253,136,367)
61.92% respectively, are subject to periodic interest repricing. Remaining peso-denominated loans
earned annual EIR ranging from 2.99% to 30.61% and from 2.99% to 33.13% for the years ended Balances at end of year 262,553,193 729,506,789 546,746,216 1,538,806,198
December 31, 2021 and 2020, respectively. All foreign currency-denominated loans of the Bank as Accumulated Depreciation and
of December 31, 2021 and 2020 are subject to periodic interest repricing and earned annual EIR Amortization
ranging from 2.29% to 3.37% and from 2.42% to 8.40% for the years ended December 31, 2021 Balances at beginning of year P193,475,533 P712,150,384 P557,167,893 P1,462,793,810
and 2020, respectively. Depreciation and amortization 6,141,244 65,268,068 8,899,253 80,308,565
Disposals/write-off – (203,797,897) (46,445,202) (250,243,099)
All sales contract receivable as of December 31, 2021 and 2020 are subject to periodic interest
Balances at end of year 199,616,777 573,620,555 519,621,944 1,292,859,276
repricing.
Net Book Value at end of year P62,936,416 P155,886,234 P27,124,272 P245,946,922
Receivable from Philmay Property, Incorporated (PPI)
As of December 31, 2021 and 2020, receivable from PPI (included under Accounts Receivable – December 31, 2020
Corporate) has a carrying value of P579.7 million and P599.7 million, respectively. The receivable Furniture,
bears an interest rate based on one-month PH BVAL reference rates plus 1.00%, repriceable every Condominium Leasehold
Fixtures and Total
month. The Memorandum of Agreement (MOA) originally signed on September 15, 2009 between Units Improvements
Equipment
the Bank and PPI expired on September 19, 2019. On October 1, 2019, the Bank and PPI signed an Cost
addendum to the original MOA extending the payment terms whereas PPI will settle the receivable
Balances at beginning of year P262,553,193 P827,774,219 P568,654,926 P1,658,982,338
within ten (10) years beginning October 1, 2019 until September 30, 2029.
Additions – 85,375,859 8,784,940 94,160,799
The receivable from PPI is secured by deposit hold-out agreement, executed by the Parent Company, Disposals/write-off – (13,526,427) (589,501) (14,115,928)
amounting to US$20.0 million. In the event that PPI fails to perform its obligation under the Balances at end of year 262,553,193 899,623,651 576,850,365 1,739,027,209
Memorandum of Agreement, and that the same is not cured or corrected within a period of Accumulated Depreciation and
thirty (30) days from notice by the Bank, the Bank is authorized by the Parent Company to immediately Amortization
offset and apply the deposit as partial or full payment of the obligation without need of demand. Balances at beginning of year 187,334,289 655,537,931 547,709,830 1,390,582,050
Depreciation and amortization 6,141,244 68,345,617 10,047,555 84,534,416
Disposals/write-off – (11,733,164) (589,492) (12,322,656)
Balances at end of year 193,475,533 712,150,384 557,167,893 1,462,793,810
Net Book Value at end of year P69,077,660 P187,473,267 P19,682,472 P276,233,399
Depreciation and amortization consist of: December 31, 2020

Land Building Total
2021 2020 Cost
Right-of-use assets (Note 24) P116,502,827 P122,499,309 Balances at beginning of year P351,120,108 P1,021,911,380 P1,373,031,488
Chattel properties acquired (Note 12) 84,843,678 101,895,035 Additions 10,492,560 74,986,290 85,478,850
Investment properties (Note 11) 82,515,138 80,605,266 Disposals (18,969,444) (36,678,366) (55,647,810)
Property and equipment 80,308,565 84,534,416 Balances at end of year 342,643,224 1,060,219,304 1,402,862,528
Software costs (Note 12) 29,733,140 40,149,517 Accumulated Depreciation
P393,903,348 P429,683,543 Balances at beginning of year – 217,590,452 217,590,452
Depreciation (Note 10) – 80,605,266 80,605,266
As of December 31, 2021 and 2020, the cost of fully depreciated property and equipment still in use
by the Bank amounted to P0.9 billion and P1.1 billion, respectively. Disposals – (7,603,425) (7,603,425)
Balances at end of year – 290,592,293 290,592,293
Accumulated Impairment Loss
11. Investment Properties Balances at beginning of year 18,960,705 307,799 19,268,504
Provision (Reversals) (3,375,026) 2,589,230 (785,796)
The composition of and movements in this account follow:
Disposals – (39,465) (39,465)
Balances at end of year 15,585,679 2,857,564 18,443,243
December 31, 2021
Net Book Value at end of year P327,057,545 P766,769,447 P1,093,826,992
Land Building Total
Cost Annually, management reviews the recoverable amount of investment properties. Several factors
Balances at beginning of year P342,643,224 P1,060,219,304 P1,402,862,528 are considered such as real estate prices and physical condition of properties. The fair value of the
Additions 24,971,415 179,490,635 204,462,050 investment properties as of December 31, 2021 and 2020 amounted to P1.5 billion and P1.8 billion
Disposals (23,582,279) (35,528,874) (59,111,153) as determined by independent and/or in-house appraisers (see Note 5).
Balances at end of year 344,032,360 1,204,181,065 1,548,213,425
Direct operating expenses, included in the ‘Litigation and assets acquired expenses’ in the
Accumulated Depreciation statements of income, arising from investment properties amounted to P192.0 million and
Balances at beginning of year P– P290,592,293 P290,592,293 P122.0 million for the years ended December 31, 2021 and 2020, respectively.
Depreciation (Note 10) – 82,515,138 82,515,138
Disposals – (7,440,554) (7,440,554)
12. Other Assets
Balances at end of year – 365,666,877 365,666,877
Accumulated Impairment Loss This account consists of:
Balances at beginning of year 15,585,679 2,857,564 18,443,243
Provisions (reversals) 2,409,394 (745,165) 1,664,229 2021 2020
Disposals (390,371) (186,856) (577,227) Chattel properties acquired P245,779,777 P370,094,191
Balances at end of year 17,604,702 1,925,543 19,530,245 Software costs 134,280,093 124,835,541
Net Book Value at end of year P326,427,658 P836,588,645 P1,163,016,303 Security deposits 67,909,207 67,909,207
Documentary stamps 37,386,120 43,461,232
Prepaid expenses 34,831,618 29,445,282
Sundry debits 15,735,474 48,170,287
Prepaid interest 92,679 841,275
Miscellaneous 118,699,963 76,329,716
P654,714,931 P761,086,731
Prepaid interest represents advance interest payments on certain time deposit products.
13. Deposit Liabilities
Allowance for impairment loss on certain other assets amounted to P19.1 million and P18.9 million
as of December 31, 2021 and 2020, respectively. In 2020, BSP Circular No. 1082 was issued reducing the reserve requirements against deposit and
deposit substitute liabilities. As of December 31, 2021 and 2020, non-FCDU deposit liabilities of the
Movements in chattel properties acquired follow: Parent Company and deposit substitutes are subject to required reserves of 12.0%. The required
reserves can be kept in the form of deposits maintained in the demand deposit accounts with the
BSP and any government securities used as compliance until they mature. Per BSP Circular No.1100,
2021 2020
the use of MSME loans as allowable alternative compliance with the reserve requirement shall
Cost be available to banks/NBQBs from April 24, 2020 to December 29, 2022. As of December 31, 2021,
Balances at beginning of year P478,185,228 P375,555,806 eligible MSME loans as alternative compliance to the reserve requirement amounted to P1.2 billion.
Additions (Note 30) 1,077,391,213 909,431,852
Disposals (1,271,101,776) (806,802,430) The Bank is in compliance with such regulations as of December 31, 2021 and 2020.
Balances at end of year 284,474,665 478,185,228
As of December 31, 2021 and 2020, the total statutory and liquidity reserves (under ‘Due from BSP’
Accumulated Depreciation account) as reported to the BSP amounted to P6.4 billion and P9.0 billion, respectively. Deposits
Balances at beginning of year 89,160,137 116,938,808 under Overnight Deposit Facility (ODF) as of December 31, 2021 and 2020 amounted to P7.3 billion
Depreciation (Note 10) 84,843,678 101,895,035 and P2.7 billion, respectively. Deposits under Term Deposit Facility (TDF) as of December 31, 2021
Disposals (136,875,474) (129,673,706) and 2020 amounted to P3.0 billion and nil, respectively.
Interest expense on deposit liabilities consists of:
Accumulated Impairment Loss
Balances at beginning of year 18,930,900 2,436,006
2021 2020
Provision 38,138,772 40,681,762
Time P580,211,379 P1,075,017,339
Disposals (55,503,125) (24,186,868)
Savings 91,293,293 174,330,647
Demand 102,174,796 246,160,015
Net Book Value at end of year P245,779,777 P370,094,191
P773,679,468 P1,495,508,001
Movements in software costs follow:
Peso-denominated deposit liabilities earn annual fixed interest rates ranging from 0.10% to 8.50%
and from 0.10% to 5.50% for the years ended December 31, 2021 and 2020, respectively, while foreign
2021 2020 currency-denominated deposit liabilities earn annual fixed interest rates ranging from 0.01% to
Cost 1.01% and from 0.03% to 1.90% for the years ended December 31, 2021 and 2020, respectively.
Balances at beginning of year P378,250,670 P363,861,552
Additions 39,177,692 14,389,118
Balances at end of year 417,428,362 378,250,670 14. Bills Payable
Accumulated Depreciation
Balances at beginning of year 253,415,129 213,265,613 This account consists of borrowings from the Parent Company (see Note 28) amounting to
Amortization (Note 10) 29,733,140 40,149,517 P11.4 billion and P2.2 billion as of December 31, 2021 and 2020, respectively. These are unsecured
borrowings by the Bank.
Net Book Value at end of year P134,280,093 P124,835,541 Dollar-denominated borrowings are subject to annual EIR ranging from 0.28% to 0.33% and from
0.25% to 0.40% for the years ended December 31, 2021 and 2020, respectively. As of
As of December 31, 2021 and 2020, the cost of fully amortized software still in use by the Bank
December 31, 2021 and 2020, there are no peso-denominated borrowings.
amounted to P209.7 million and P125.0 million, respectively.
As of December 31, 2021 and 2020, the terms of the borrowings range from 3 to 7 days and from 36
to 500 days, respectively. 16. Other Liabilities
Interest expense on bills payable and other borrowings consists of: This account consists of:
2021 2020 2021 2020

Subordinated debt (Note 28) P112,446,974 P112,704,352 Accounts payable P640,232,882 P939,287,777
Bills payable 21,095,456 79,100,350 Unearned bancassurance income (Note 28) 466,666,667 –
P133,542,430 P191,804,702 Net pension liability (Note 20) 343,134,067 347,766,145
Withholding taxes payable 45,486,106 40,716,735
Bills purchased – contra (Note 9) 31,832,108 27,474,565
15. Accrued Interest, Taxes and Other Expenses Due to the Treasurer of the Philippines 23,629,128 16,061,549
Other dormant credits 22,298,945 11,772,378
This account consists of: Allowance for credit losses on off-balance sheet exposures 9,648,143 19,706,346
Other deferred credits 1,236,852 2,468,699
2021 2020 Miscellaneous 129,502,187 28,899,805
Accrued employee benefits P329,737,474 P219,770,030 P1,713,667,085 P1,434,153,999
Accrued interest payable 95,001,054 125,200,155
Accrued taxes and licenses 86,590,608 97,598,233
Accrued rent 16,624,803 5,636,679
Accrued other expenses 763,037,816 647,679,803
P1,290,991,755 P1,095,884,900 17. Derivative Financial Instruments
As of December 31, 2021 and 2020, the Bank’s derivative financial instruments represent interest
Accrued other expenses include accrual for various administrative expenses, professional fees and rate swaps and currency forwards used by the Bank to manage exposures arising from changes in
information technology expenses. interest rates and foreign exchange rates.
The table sets out the information about the Bank’s derivative financial instruments and the related
fair values, together with the notional amounts:

Notional Derivative Derivative Notional Derivative Derivative
Amount Asset Liability Amount Asset Liability
Interest rate swaps P2,250,000,000 P108,525,031 P119,656,031 P2,350,000,000 P113,424,049 P116,068,716
Cross-currency interest rate swap P374,997,500 4,616,298 – P374,997,500 – 22,185,318
Non-deliverable swaps (NDS) P12,920,685,000 – 99,861,592 P961,200,000 2,685,105 –
Non-deliverable forwards (NDF) P752,970,000 12,029,605 –
Forward contracts US$384,817,137 205,784,463 76,575 US$223,495,524 20,791,611 26,320,383
P330,955,397 P219,594,198 P136,900,765 P164,574,417
The Bank has no foreign-currency denominated interest rate swaps in 2021 and 2020.

Interest income from derivatives in 2021 and 2020 amounted to P3.7 million and P278.3 million, December 31, 2021 December 31, 2020
respectively. Interest expense on derivatives in 2021 and 2020 amounted to P9.7 million and Up to Over Up to Over
P5.6 million, respectively. One Year One Year Total One Year One Year Total
Financial assets at FVOCI
The movements in the Bank’s derivative financial instruments follow:
Government debt securities P2,593,130,635 P5,507,473,953 P8,100,604,588 P2,067,866,116 P5,261,268,039 P 7,329,134,155
Private debt securities 343,521,692 128,719,878 472,241,570 − 472,933,228 472,933,228
2021 2020
Private equity securities:
Derivative Assets
Quoted − 8,761,382 8,761,382 − 8,761,382 8,761,382
Balance at beginning of year P136,900,765 P258,792,099
Unquoted − 15,383,600 15,383,600 − 15,383,600 15,383,600
Changes in fair value (Note 21) 211,012,387 (151,320,334)
2,936,652,327 5,660,338,813 8,596,991,140 2,067,866,116 5,758,346,249 7,826,212,365
Net addition (settlement) (16,957,755) 29,429,000
Balance at end of year P330,955,397 P136,900,765 Financial assets at amortized cost
Government debt securities 3,155,607,482 5,461,203,671 8,616,811,153 1,369,893,828 4,374,604,144 5,744,497,972
2021 2020 Private debt securities 9,031,676 1,863,268,774 1,872,300,450 1,120,000,000 1,793,165,000 2,913,165,000
Derivative Liabilities 3,164,639,158 7,324,472,445 10,489,111,603 2,489,893,828 6,167,769,144 8,657,662,972

Changes in fair value (Note 21) 381,116,259 22,189,593 Loans and receivables:
Net settlement (326,096,478) (145,785,375) Receivable from customers
Balance at end of year P219,594,198 P164,574,417 Corporate 5,496,282,912 5,771,538,178 11,267,821,090 7,348,612,765 7,651,213,045 14,999,825,810
Commercial 2,399,359,731 850,322,603 3,249,682,334 2,292,891,740 465,511,604 2,758,403,344
Consumer:
18. Maturity Analysis of Assets and Liabilities Auto loans 7,403,301,365 15,024,919,817 22,428,221,182 2,090,207,408 26,853,531,211 28,943,738,619
Housing 2,028,973,174 9,643,485,993 11,672,459,167 65,150,398 11,484,933,148 11,550,083,546
The table below shows an analysis of assets and liabilities analyzed according to when they are Others 782,845,075 167,294,873 950,139,948 953,027,616 321,966,466 1,274,994,082
expected to be recovered or settled:
18,110,762,257 31,457,561,464 49,568,323,721 12,749,889,927 46,777,155,474 59,527,045,401
Sales contract receivable:
Corporate 756,819 316,000,000 316,756,819 − 318,576,952 318,576,952
Up to Over Up to Over
One Year One Year Total One Year One Year Total Individual 3,769,789 34,428,117 38,197,906 1,061,567 31,961,694 33,023,261
Financial Assets 4,526,608 350,428,117 354,954,725 1,061,567 350,538,646 351,600,213
Cash and other cash items P1,757,511,280 P− P1,757,511,280 P1,318,048,371 P− P1,318,048,371 Accounts receivable:
Due from BSP 16,670,508,819 − 16,670,508,819 11,740,621,685 − 11,740,621,685 Corporate 494,482,116 641,328,523 1,135,810,639 1,042,520,730 71,027,797 1,113,548,527
Due from other banks 2,313,027,681 − 2,313,027,681 4,080,554,878 − 4,080,554,878 Individual 3,968,329 6,006,625 9,974,954 3,274,821 10,252,266 13,527,087
Interbank loans receivable and 498,450,445 647,335,148 1,145,785,593 1,045,795,551 81,280,063 1,127,075,614
SPURA 6,270,065,184 − 6,270,065,184 946,563,080 − 946,563,080 Accrued interest receivable 1,021,694,647 − 1,021,694,647 1,689,704,011 − 1,689,704,011
Financial assets at FVPL: RCOCI 276,516 − 276,516 328,684 − 328,684
Government securities 3,902,000,000 − 3,902,000,000 2,902,841,736 748,376,108 3,651,217,844 19,635,710,473 32,455,324,729 52,091,035,202 15,486,779,740 47,208,974,183 62,695,753,923
Derivative assets 230,964,740 99,990,657 330,955,397 46,148,262 90,752,503 136,900,765 56,881,079,662 45,540,126,644 102,421,206,306 41,079,317,696 59,974,218,187 101,053,535,883
4,132,964,740 99,990,657 4,232,955,397 2,948,989,998 839,128,611 3,788,118,609
(Forward)
(Forward)
Up to Over Up to Over
One Year One Year Total One Year One Year Total 19. Capital Funds
Nonfinancial Assets
Property and equipment − 245,946,922 245,946,922 − 276,233,399 276,233,399 The Bank’s capital stock as of December 31, 2021 and 2020 consists of:
Right-of-Use Assets − 567,135,113 567,135,113 − 589,928,379 589,928,379
Investment properties − 1,163,016,303 1,163,016,303 − 1,093,826,992 1,093,826,992 Shares Amount
Deferred tax assets − 1,413,624,970 1,413,624,970 − 1,530,014,203 1,530,014,203 Common stock – P35.0 par value
Other assets 452,525,634 202,189,297 654,714,931 568,341,983 192,744,748 761,086,731 Authorized 473,366,128 P16,567,814,480
452,525,634 3,591,912,605 4,044,438,239 568,341,983 3,682,747,721 4,251,089,704 Issued and outstanding
Less: Allowance for Balance at the beginning and end of the period, net of subscriptions
294,666,980 10,313,344,184
impairment receivable of P5,781,250
and credit losses (4,006,770,785) (4,119,336,275)
Preferred stock – P3.7 par value
Unearned discounts and
other deferred income (29,979,628) (23,526,669) Authorized
295,000,000 1,091,500,000
Issued and outstanding
Total Assets P102,428,894,132 P101,161,762,643
Balance at the beginning and end of the period, net of subscriptions
62,848,617 232,539,724
receivable of P218,750
357,515,597 P10,545,883,908
Deposit liabilities:
Demand 26,990,507,379 − 26,990,507,379 25,751,394,611 − 25,751,394,611
Savings 22,404,961,178 − 22,404,961,178 24,152,905,334 − 24,152,905,334 Preferred shares of stock are cumulative with a guaranteed quarterly dividend of 2.50%,
Time 16,412,567,473 5,972,069,142 22,384,636,615 20,945,348,160 9,687,387,972 30,632,736,132 nonparticipating, nonvoting and with preference in asset distribution and payable in full at par
plus accumulated dividends in case of dissolution or liquidation. Dividends are declared at the
65,808,036,030 5,972,069,142 71,780,105,172 70,849,648,105 9,687,387,972 80,537,036,077
discretion of the BOD.
Financial liabilities at FVPL: Preferred Series “A” and “B” shares of stock are redeemable at the option of the Bank at par value
Derivative liabilities 109,261,756 110,332,442 219,594,198 48,268,265 116,306,152 164,574,417 plus unpaid accumulated dividends after 15 years from date of issue. Where the Bank exercises the
Bills payable 11,372,777,000 − 11,372,777,000 2,209,058,000 − 2,209,058,000 option to redeem the shares, the holder will have an option to convert to new preferred shares or
certificate of indebtedness in lieu of redemption. Preferred Series “B” shares of stock included in
Manager’s checks 501,201,983 − 501,201,983 375,475,955 − 375,475,955
the increase in capitalization authorized under the resolution passed by stockholders on
Accrued interest payable 58,790,653 36,210,401 95,001,054 87,368,735 37,831,420 125,200,155 October 20, 1962, are redeemable after ten (10) years from date of issue and convertible, at the
Outstanding acceptances − − − − option of the holder, into voting common shares of stock in lieu of redemption. Both Preferred
Accounts payable 640,232,882 − 640,232,882 939,287,777 − 939,287,777 Series “A” and “B” shares of stock were issued on October 1, 1961.
Subordinated debt − 1,993,568,187 1,993,568,187 − 1,992,648,990 1,992,648,990
Due to Treasurer of the Preferred Series “C” shares of stock have preference in payment of dividends over other preferred
Philippines − 23,629,128 23,629,128 − 16,061,549 16,061,549 or common shares which have unpaid accumulated and accrued dividends, and are convertible into
12,682,264,274 2,163,740,158 14,846,004,432 3,659,458,732 2,162,848,111 5,822,306,843 voting common stock at the option of the holder thereof, provided that such conversion be made
only after 7-1/2 years from date of issue. Preferred Series “C” shares of stock were issued on
Nonfinancial Liabilities
September 14, 1974.
Lease liabilities 129,367,604 588,481,190 717,848,794 125,991,586 626,335,424 752,327,010
Income tax payable 1,328,705 − 1,328,705 4,825,636 − 4,825,636 As of December 31, 2021 and 2020, dividends in arrears on cumulative preferred shares amounted to
Accrued taxes and other P1.2 billion and P1.1 billion, respectively.
expenses 1,195,990,701 − 1,195,990,701 970,684,745 − 970,684,745
Other liabilities 276,115,487 773,689,588 1,049,805,075 131,038,528 347,766,145 478,804,673 Treasury shares consist of 5,130 common shares, 38,000 Preferred Series “A” shares of stock and
1,602,802,497 1,362,170,778 2,964,973,275 1,232,540,495 974,101,569 2,206,642,064 17,150 Preferred Series “B” shares of stock, which are carried at cost.
Total Liabilities P80,093,102,801 P9,497,980,078 P89,591,082,879 P75,741,647,332 P12,824,337,652 P88,565,984,984

Employee Stock Option Scheme (ESOS) In addition to changes in minimum capital requirements, this Circular also requires various
Prior to August 25, 2009, all employees of the Bank are entitled to a grant of stock options from the regulatory adjustments in the calculation of qualifying capital.
Parent Company once they have been in service for two years. Options awarded to an employee
that are made available immediately, with no vesting period, are expensed outright. Options which The BSP prescribes certain sanctions for non-compliance with the minimum capital requirements
are exercisable based on the schedule in ESOS over a period of five years from the date of grant are depending on the degree of capital deficiency incurred by the Bank such as suspension of authority
expensed over the vesting period. The exercise price of the options is equal to the weighted average to invest in allied undertakings, branching privileges and declaration of dividends, among others.
market price of the shares subject to a discount within the limit allowed by the relevant authorities
but shall, in no event, be less than the par value of the shares. The option has a maximum On June 27, 2014, the BSP issued Circular No. 839, REST Limit for Real Estate Exposures which
contractual life of five years and has no cash settlement alternatives. The stock option plan expired provides the implementing guidelines on the prudential REST limit for universal, commercial, and
on August 25, 2009. thrift banks on their aggregate real estate exposures. The Bank should maintain CET1 and CAR
levels at the regulatory prescribed minimums, on a solo and consolidated basis, even after the
The cost of the share-based payments arising from this stock option plan from the Parent Company simulated results of a 25.00% write-off to the Bank’s real estate exposures. These shall be complied
amounting to P262.8 million was recognized as an equity-settled award in the Bank’s financial with at all times.
statements and was recognized in equity.
The table below summarizes the (CAR) of the Bank as reported to the BSP as of December 31, 2021
Capital Management and 2020 (amounts in millions):
The Bank manages its capital to ensure it complies with externally imposed capital requirements
and maintains healthy capital ratios to support business growth and maximize shareholder value.
2021 2020
Surplus reserves Tier 1 capital P10,686 P10,317
Surplus reserves of the Bank include reserve for trust business amounting to P31.0 million as CET 1 Capital 10,686 10,317
of December 31, 2021 and 2020. In compliance with existing BSP regulations, 10.00% of the net Net Tier 1 Capital 10,686 10,317
profits realized by the Bank from its trust business is appropriated to surplus reserve. The yearly Tier 2 capital 2,520 2,654
appropriation is required until the surplus reserve for trust business equals 20.00% of the Bank’s
Total Qualifying Capital P13,206 P12,971
regulatory capital.
Regulatory Qualifying Capital Credit Risk-Weighted Assets P52,956 P66,046

BSP, as the Bank’s lead regulator, sets and monitors capital requirements. Under current banking Market Risk-Weighted Assets 982 547
regulations, the Bank’s compliance with regulatory requirements and ratios is based on the Operational Risk-Weighted Assets 8,877 9,138
“unimpaired capital” (regulatory net worth) reported to the BSP, which is determined on the basis of
Total Risk-Weighted Assets P62,815 P75,731
regulatory policies, which differ from PFRS in some respects. Moreover, the risk-based capital ratio
of a bank, expressed as a percentage of qualifying capital to risk-weighted assets, should not be less
than ten percent (10.00%). Qualifying capital and risk-weighted assets are computed based on BSP CET1 Ratio 17.01% 13.62%
regulations. The Bank is also required to meet the minimum capital of P2.4 billion. Tier 1 capital ratio 17.01% 13.62%
Total capital ratio 21.02% 17.13%
Effective January 1, 2014, the Bank complied with BSP Circular No. 781, Basel III Implementing
Guidelines on Minimum Capital Requirements, which provides the implementing guidelines on the
revised risk-based capital adequacy framework particularly on the minimum capital and disclosure The qualifying capital and risk-weighted assets (RWA) are computed based on BSP regulations.
requirements for universal banks and commercial banks, as well as their subsidiary banks and
quasi-banks, in accordance with the Basel III standards. Under Basel III, the regulatory Gross Qualifying Capital of the Bank consists of Tier 1 (core),
composed of Common Equity Tier 1 and Additional Tier 1, and Tier 2 (supplementary) capital.
The Circular sets out a minimum Common Equity Tier 1 (CET1) ratio of 6.00% and Tier 1 capital ratio Tier 1 capital comprises share capital, retained earnings (including current year profit) and
of 7.50%. It also introduces a capital conservation buffer of 2.50% comprised of CET1 capital. The non‑controlling interest less required deductions such as deferred income tax and unsecured credit
BSP’s existing requirement for Total CAR remains unchanged at 10.00% and these ratios shall be accommodations to DOSRI. Tier 2 capital includes unsecured subordinated debts, revaluation
maintained at all times. reserves and general loan loss provision.
Risk-weighted assets are determined by assigning defined risk weights to the statements of financial In the case of derivatives, the credit equivalent amount (against which the risk weight factor
position exposure and to the credit equivalent amounts of off-balance sheet exposures. Certain is multiplied to arrive at the risk-weighted exposure) is generally the sum of the current credit
items are deducted from risk-weighted assets, such as the excess of general loan loss provision over exposure or replacement cost (the positive fair value or zero if the fair value is negative or zero) and
the amount permitted to be included in Tier 2 capital. The risk weights vary from 0.00% to 150.00% an estimate of the potential future credit exposure or add-on. The add-on ranges from 0.00% to
depending on the type of exposure, with the risk weights of off-balance sheet exposures being 1.50% (interest rate-related) and from 1.00% to 7.50% (exchange rate-related), depending on the
subjected further to credit conversion factors. residual maturity of the contract. For credit-linked notes and similar instruments, the risk‑weighted
exposure is the higher of the exposure based on the risk weight of the issuer’s collateral or the
Below is a summary of risk weights and selected exposure types: reference entity or entities.
Risk weight Exposure/Asset type* The risk-weighted CAR is calculated by dividing the sum of its Tier 1 and Tier 2 capital, as defined
under BSP regulations, by its risk-weighted assets. The risk-weighted assets, as defined by the BSP
Cash on hand; claims collateralized by securities issued by the
regulations, consist of all of the assets on the statement of financial position at their respective
national government, BSP; loans covered by the Trade and Investment book values, together with certain other off-balance sheet items, weighted by certain percentages
Development Corporation of the Philippines; real estate mortgages depending on the risks associated with the type of assets. The determination of compliance with
0.00% covered by the Home Guarantee Corporation regulatory requirements and ratios is based on the amount of the Bank’s ‘unimpaired capital’
COCI, claims guaranteed by Philippine incorporated banks/quasi-banks (regulatory net worth) as reported to the BSP, which is determined on the basis of regulatory
with the highest credit quality; claims guaranteed by foreign incorporated accounting practices which differ from PFRS in some respects.
banks with the highest credit quality; loans to exporters to the extent
20.00% guaranteed by Small Business Guarantee and Finance Corporation As of December 31, 2021 and 2020, the Bank has complied with the CAR requirement of the BSP.
Housing loans fully secured by first mortgage on residential property; Local
Government Unit (LGU) bonds which are covered by Deed of Assignment of Internal Capital Adequacy Assessment Process (ICAAP)
Internal Revenue allotment of the LGU and guaranteed by the LGU Guaran‑ In 2009, the BSP issued Circular No. 639 covering the ICAAP which supplements the BSP’s risk‑based
capital adequacy framework under BSP Circular No. 538. The Bank has a Board‑approved ICAAP
50.00% tee Corporation
Framework with areas that cover Capital Management, Pillar 1 and Pillar 2 Risk Measurement,
Minimum Internal Capital Requirement Calculation, Use of the ICAAP, Governance Structure, and
Reporting Framework. The Bank complies with the required annual submission of updated ICAAP.
Risk weight Exposure/Asset type*
Direct loans of defined Small Medium Enterprise (SME) and microfinance Leverage Ratio
loans portfolio; nonperforming housing loans fully secured by first mort‑ On June 9, 2015, BSP issued circular No. 881, which approved the guidelines for the implementation
75.00% gage of the Basel 3 Leverage Ratio (BLR) in the Philippines. The Basel III Leverage Ratio is designed to act
as a supplementary measure to the risk-based capital requirements. The leverage ratio intends to
All other assets (e.g., real estate assets) excluding those deducted from
restrict the build-up of leverage in the banking sector to avoid destabilizing deleveraging processes
100.00% capital (e.g., deferred income tax)
which can damage the broader financial system and the economy. Likewise, it reinforces the risk-
All nonperforming loans (except nonperforming housing loans fully se‑ based requirements with a simple, non-risk based “backstop” measure. The Basel III leverage ratio is
150.00% cured by first mortgage) and all nonperforming debt securities defined as the capital measure (the numerator) divided by the exposure measure (the denominator).
The monitoring of the leverage ratio shall be implemented as a Pillar 1 minimum requirement
* Not all inclusive
effective on July 1, 2018.
With respect to off-balance sheet exposures, the exposure amount is multiplied by a credit
The BLR of the Bank as of December 31, 2021 and 2020 as reported to the BSP are shown in the table
conversion factor (CCF), ranging from 0.00% to 100.00%, to arrive at the credit equivalent amount,
below (amounts in millions).
before the risk weight factor is multiplied to arrive at the risk-weighted exposure. Direct credit
substitutes (e.g., guarantees) have a CCF of 100.00%, while items not involving credit risk have a CCF
of 0.00%. 2021 2020
Tier 1 Capital P10,686 P10,317
Exposure Measure 104,178 103,277
Leverage Ratio 10.26% 9.99%

Liquidity Coverage Ratio The net pension liability included in ‘Other liabilities’ in the statements of financial position is as
On February 18, 2016, the BSP issued Circular No. 905 which approved the attached liquidity follows:
standards, which include guidelines on liquidity coverage ratio (LCR), and LCR disclosure standards
that are consistent with the Basel III framework. Banks are required to adopt Basel III’s Liquidity
2021 2020
Coverage Ratio (LCR) aimed at strengthening the short-term liquidity position of banks. This
requires banks to have available High Quality Liquid Assets (HQLA) to meet anticipated net cash Present value of the defined benefit obligation P613,500,242 P635,404,770
outflow for a 30-day period under stress conditions. The standard prescribes that, under a normal Fair value of plan assets (270,366,175) (287,638,625)
situation, the value of the liquidity ratio be no lower than 100% on a daily basis because the stock of Net pension liability P343,134,067 P347,766,145
unencumbered HQLA is intended to serve as a defense against potential onset of liquidity stress.
As of December 31, 2021 and 2020, the LCR of the Bank as reported to the BSP in single currency is Changes in the present value of the defined benefit obligation as of December 31, 2021 and 2020
147.87% and 140.94%, respectively. recognized in the statements of financial position follow:
Net Stable Funding Ratio 2021 2020

On May 24, 2018, the BSP issued Circular No. 1007 which approved the implementing guidelines on
the adoption of the Basel III Framework on Liquidity Standards – Net Stable Funding Ratio (NSFR).
Banks are required to adopt Basel III’s NSFR aimed to promote long-term resilience of banks against Current service cost 76,986,935 75,411,260
liquidity risk. Banks shall maintain a stable funding profile in relation to the composition of its Interest cost 21,730,843 31,857,052
assets and off-balance sheet activities. The NSFR complements the LCR, which promotes short-term Remeasurement loss (gain):
resilience of a Bank’s liquidity profile. Actuarial gain arising from experience Adjustments: (4,893,300) (8,333,418)
Actuarial loss arising from changes in demographic assumptions − 630,692
As of December 31, 2021 and 2020, the NSFR of the Bank as reported to the BSP is 156.00% and
128.00%, respectively. Actuarial gain arising from changes in financial assumptions (5,220,466) (31,480,143)
Benefits paid (110,508,540) (93,615,367)
The Bank has taken into consideration the impact of the foregoing requirements to ensure that the Balance at end of year P613,500,242 P635,404,770
appropriate level and quality of capital are maintained on an ongoing basis. The Bank has complied
with all externally imposed capital requirement throughout the period.
Changes in fair value of plan assets are, as follows:
2021 2020
20. Retirement Plan
The Bank has a funded noncontributory defined benefit retirement plan (the Plan) covering Contributions 90,112,129 94,692,903
substantially all of its officers and regular employees. Under the Plan, all covered officers and Interest income 9,837,241 13,588,468
employees are entitled to cash benefits based on the employee’s final plan salary and years of Remeasurement loss (6,713,280) (8,945,796)
service. The Bank’s retirement plan is in the form of a trust administered by the Bank’s Trust Division
Benefits paid (110,508,540) (93,615,367)
under the supervision of the Staff Committee.
Balance at end of year P270,366,175 P287,638,625
Under the existing regulatory framework, RA No. 7641 requires companies with at least ten (10)
employees to pay retirement benefits to qualified private sector employees in the absence of any
retirement plan in the entity, provided however that the employee’s retirement benefits under any
collective bargaining and other agreements shall not be less than those provided under the law.
The law does not require minimum funding of the plan.
The fair value of plan assets by each class is as follows: 2021 2020
Increase in discount rate by 1% (P43,490,152) (P44,616,089)
2021 2020 Decrease in discount rate by 1% 49,650,016 51,188,810
Cash and cash equivalents P25,008,123 P74,743 Increase in salary increase rate by 1% 49,343,213 50,686,284
Accrued interest and other receivables 1,426,099 1,140,109 Decrease in salary increase rate by 1% (44,372,579) (45,667,138)
Debt instruments
Government securities 276,598,188 268,389,675 The amounts included in ‘Compensation and fringe benefits’ expense in the statements of income
are as follows:
Private securities 16,860,372 21,496,044
Liabilities (761,015) (839,564)
2021 2020
Adjustments:
Current service cost P76,986,935 P75,411,260
Benefits for reimbursements (56,777,463) (2,622,382)
Net interest cost 11,893,602 18,268,584
Expected contributions for the year 7,116,298 –
Expense recognized during the year P88,880,537 P93,679,844
Expected interest for the year 895,573 –
Fair value of plan assets P270,366,175 P287,638,625 The Bank also has a defined contribution plan for certain employees. The pension expense
recognized under this plan amounting to P28.4 million for the years ended December 31, 2021
and 2020, is included in ‘Compensation and fringe benefits’ in the statements of income.
The Bank’s plan assets are carried at fair value. All equity and debt instruments held have quoted
prices in active market. The fair value of cash and cash equivalents, accrued interest and other The average duration of the retirement liability is 11 years in 2021. Maturity analysis of the
receivables approximates its carrying amount due to the short-term nature of these accounts. undiscounted benefit payments follow:
Each year, an Asset-Liability Matching Study (ALM) is performed with the result being analyzed in
terms of risk-and-return profiles. The portfolio mix of the Bank’s plan assets as of December 31, 2021 2020
2021 and 2020 was approved by the Staff Committee. Less than one year P80,026,634 P74,825,348
More than one to five years 285,358,242 288,250,065
The Bank expects to contribute P80.0 million to the plan in 2022. More than five to 10 years 514,834,715 342,453,681
More than 10 to 15 years 526,522,384 431,321,765
The cost of defined benefit retirement plans as well as the present value of the benefit obligation
is determined using actuarial valuations. The actuarial valuation involves making various More than 15 to 20 years 339,515,374 315,533,050
assumptions. The principal assumptions used are shown below: More than 20 years 569,517,875 423,047,151
2021 2020
Discount rate 21. Net Trading Gains
At January 1 3.42% 4.82%
At December 31 4.84% 3.42% This account consists of:
Future salary increase rate 4.30% 3.00%
Average remaining working life 11 14 2021 2020
Financial instruments at FVPL:
The sensitivity analysis below has been determined based on reasonably possible changes of Derivatives (Note 17) P592,128,646 (P129,130,741)
each significant assumption on the defined benefit obligation as of December 31, 2021 and 2020,
HFT investments (Note 6) (45,424,296) 198,926,783
assuming all other assumptions were held constant.
Financial assets at FVOCI (Note 7) (1,240) 57,582,083
P546,703,110 P127,378,125

22. Service Charges, Fees and Commissions 2021 2020

Freight 14,132,907 10,283,848
This account consists of: Minor tools and equipment 4,090,628 4,036,811
Fuel and lubricants 1,679,363 1,449,124
2021 2020 Philippine Clearing House Corporation fees 1,296,993 1,430,303
Credit-related (Note 28) P747,084,205 P299,038,957 Others 52,184,384 92,091,293
Deposit-related 58,782,210 63,936,485 P520,968,633 P501,069,003
Others (Note 28) 116,558,807 45,153,876
P922,425,222 Cards-related expenses include costs relating to cards acquiring business of the Bank, settlement
P408,129,318
expenses and credit investigation expenses.
Credit-related service fees are generated from the auto and mortgage businesses of the Bank.
Others include periodicals, various office supplies, registration fee for various seminars, donations
and charitable contribution.
23. Miscellaneous Income and Expense
Miscellaneous income consists of: 24. Lease Contracts
The rollforward analysis of right-of-use assets follows:

2021 2020
Recovery on written-off accounts P54,228,746 P19,912,011 2021 2020
Trust fees (Note 28) 35,682,795 28,012,615 ROU, beginning balance P589,928,379 P661,697,559
Others 45,620,671 45,187,545 Additions 96,371,130 84,238,289
P135,532,212 P93,112,171 Lease termination/expiration (2,661,569) (33,508,160)
Others include miscellaneous income from penalties, inspection, appraisal and processing fees on Depreciation (Note 10) (116,502,827) (122,499,309)
charged off assets, and rental income. ROU assets, ending balance P567,135,113 P589,928,379
Miscellaneous expense consists of: Set out below are the amounts recognized in the statement of income:
2021 2020 2021 2020

Outsourced services P177,877,142 P159,017,088 Expenses
Commissions and service charges 53,057,897 31,457,697 Depreciation expense of right-of-use assets P116,502,827 P122,499,309
Cards-related expenses 48,576,746 53,236,516 Interest expense on lease liabilities 58,383,737 66,003,500
Fines and Penalties 47,758,489 47,940,493 Rent expense – short-term leases and leases of low-value assets 92,126,814 73,368,951
Advertising and publications 39,705,924 19,145,740 Total amounts recognized in statement of income P267,013,378 P261,871,760
Banking fees 34,487,289 37,139,278
The Bank entered into lease agreements with third parties.
Membership fees and dues 28,706,159 28,203,295
Repairs and maintenance 17,414,712 15,637,517
The rollforward analysis of lease liabilities follows: An MCIT of 2.00% on modified gross income is computed and compared with the RCIT. Any excess of
MCIT over RCIT is deferred and can be used as a tax credit against future income tax liability for the
next three years. In addition, NOLCO is allowed as a deduction from taxable income in the next three
2021 2020
years from the date of inception.
Lease liabilities, beginning P752,327,010 P821,054,982
Payments (188,112,156) (218,969,761) RA No. 9294 exempts from income tax the income derived by the FCDU from foreign currency
Interest expense 58,383,737 66,003,500 transactions with nonresidents, offshore banking units (OBUs) and local commercial banks including
Net additions 95,250,203 84,238,289 branches of foreign banks authorized by the BSP to transact business with FCDUs and other
depository banks under the expanded foreign currency deposit system. Interest income on foreign
Lease liabilities, ending P717,848,794 P752,327,010
currency-denominated loans by the FCDUs to residents other than OBUs or other depository banks
Shown below is the maturity analysis of the undiscounted lease payments: under the expanded system is subject to 10.00% gross income tax. In addition, interest income on
deposit placements with other FCDUs and OBUs is taxed at either 7.50% or 15.00%, while all other
income of the FCDU is subject to the 30.00% corporate income tax.
2021 2020
Within one year P214,711,478 P109,041,725 On March 15, 2011, the Bureau of Internal Revenue (BIR) issued RR No. 4-2011 which prescribed the
More than 1 years to 2 years 188,280,939 184,479,179 attribution and allocation of expenses between FCDUs/EFCDUs or OBU and RBU, and further the
More than 2 years to 3 years 157,907,310 129,448,214 allocation within RBU based on different income earning activities. Pursuant to the regulations, the
Bank made an allocation of its expenses in calculating income taxes due for RBU and FCDU.
More than 3 years to 5 years 276,892,205 156,411,331
More than 5 years 1,087,739,660 662,128,179 On April 6, 2015, the Bank and other member banks of the Bankers Association of the Philippines
P1,925,531,592 P1,241,508,628 (BAP), filed a Petition for Declaratory Relief with Application for Temporary Restraining Order (TRO)
and/or Writ of Preliminary Injunction with the Regional Trial Court of Makati (Makati Trial Court).
The Bank leases the premises occupied by its head office and branches for periods ranging from Further, in Civil Case No. 15-287, the Bank and other BAP member banks assailed the validity of
2 to 25 years and are renewable upon mutual agreement of both parties under certain terms and RR 4-2011 on the ground, among others, that (a) the RR violates the petitioner-banks substantive
conditions. Various lease contracts include escalation clauses, most of which bear an annual rent due process rights; (b) it is not only illegal but also unfair; (c) that it serves as a deterrent to banks
increase of 5.00%. Rent expense charged against current operations (included under ‘Occupancy’ to invest in capital market transactions to the prejudice of the economy; (d) it sets a dangerous
in the statements of income) amounted to P92.1 million and P73.4 million for the years ended precedent for the disallowance of full deductions due to the prescribed method of allocation; and (e)
December 31, 2021 and 2020, respectively. it violates the equal protection clause of the Constitution.
On April 8, 2015, the Makati Trial Court issued a TRO enjoining the BIR from enforcing RR 4-2011.
Also, on April 25, 2015, Makati Trial Court issued a Writ of Preliminary Injunction enjoining the BIR
25. Income and Other Taxes from enforcing, carrying out, or implementing in any way or manner RR 4-2011 against the Bank
and other BAP member banks, including issuing Preliminary Assessment Notice or Final Assessment
Under Philippine tax laws, the Bank is subject to percentage and other taxes (presented as ‘Taxes Notice against them during the pendency of the litigation, unless sooner dissolved.
and licenses’ in the statements of income) as well as income taxes. Percentage and other taxes paid
consist principally of documentary stamp tax and gross receipts tax (GRT). On June 10, 2015, the Makati Trial Court issued a Confirmatory Order stating that the TRO and Writ
of Preliminary Injunction also prohibits the BIR from ruling or deciding on any administrative matter
Income taxes include corporate income tax and FCDU final taxes, as discussed below, and final tax pending before it in relation to the subject revenue regulations and insofar as the Bank and other
paid at the rate of 20.00% on gross interest income from government securities and other deposit BAP member banks are concerned.
substitutes. These income taxes, as well as the deferred tax benefits and provisions, are presented
as ‘Provision for (benefit from) income tax’ in the statements of income. On May 25, 2018, the Makati Trial Court issued a decision annulling RR 4-2011 and making the Writ of
Preliminary Injunction permanent.
RA No. 9337, An Act Amending the National Internal Revenue Code, provides that the RCIT rate shall
be 30.00% and interest expense allowed as deductible expense shall be reduced by 33.00% of the On March 26, 2021 the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act was signed
interest income subject to final income tax. into law to attract more investments and maintain fiscal prudence and stability in the Philippines.
Republic Act (RA) 11534 or the CREATE Act introduces reforms to the corporate income tax and
incentives systems. It takes effect 15 days after its complete publication in the Official Gazette or in a
newspaper of general circulation or April 11, 2021.
2021 2020
The following are the key changes to the Philippine tax law pursuant to the CREATE Act which have an
Deferred tax liability on:
impact on the Bank.
Fair value of investment properties and chattel properties 93,729,710 66,806,462
• Effective July 1, 2020, RCIT rate is reduced from 30.00% to 25.00% for domestic and Unrealized profit on assets sold 55,956,846 70,255,016
resident foreign corporations. Fair value gain on HFT investments and
• MCIT rate reduced from 2.00% to 1.00% of gross income effective July 1, 2020 to June 30, 2023.
• The allowable deduction for interest expense shall be reduced by an amount equivalent derivatives 148,455,875 −
to twenty percent (20.00%) of interest income subjected to final tax. However, if the final Fair value gain on FVOCI investments − 37,521,935
withholding tax rate on interest income of 20.00% will be adjusted in the future, the Unrealized foreign exchange gain − 45,004,551
interest expense reduction rate shall be adjusted accordingly.
298,142,431 219,587,964
Provision for income tax consists of: P1,413,624,970 P1,530,014,203
Provision for (benefit from) deferred income tax recognized directly against OCI for the years ended
2021 2020 December 31, 2021 and 2020 amounted to (P13.3) million and P46.6 million, respectively.
Current:
As of December 31, 2021 and 2020, the Bank did not recognize deferred tax assets on certain
Final P142,574,888 P149,779,721 allowance for impairment and credit losses amounting to P20.0 million and P1.3 million,
RCIT and MCIT 98,876,939 82,855,118 respectively, since the management believes that it is not probable that the related tax benefits will
be realized in the future.
241,451,827 232,634,839
Deferred 93,334,126 (600,961,458) The Bank’s excess MCIT over RCIT which can be utilized against annual income tax payable are as
follows:
P334,785,953 (P368,326,619)
The details of net deferred tax assets follow: Inception Year Amount Used/Expired Balance Expiry Year
2019 P27,626,100 P27,626,100 P− 2022
2021 2020 2020* 2,394,907 2,394,907 − 2023
Deferred tax asset on:
* The excess MCIT over RCIT amount in 2020 is reduced by P2.40 million due to CREATE.
Allowance for impairment and credit losses P995,411,514 P1,251,105,316
Provisions and accruals 212,752,395 166,854,980 Reconciliation between the statutory income tax rate and the effective income tax rate follows:
Retirement liability and unamortized past service cost 101,529,691 131,061,346
Accumulated depreciation on investment and chattel properties 100,698,805 113,925,729 2021 2020
Unrealized foreign exchange loss 244,065,621 − Statutory income tax rate 25.00% 30.00%
Lease liability net of right-of-use assets 37,678,420 48,903,352 Tax effects of:
Excess of MCIT over RCIT − 32,390,227 Tax-exempt income and income subjected to
Fair value loss on HFT investments − 5,361,217 final tax (73.17) 22.29
Fair value loss on FVOCI investments 19,630,955 − Nondeductible expenses 69.22 (74.35)
P1,711,767,401 P1,749,602,167 FCDU income before income tax (4.78) 1.80
CREATE impact 32.31 −
(Forward)
Movements in unrecognized deferred tax assets (2.36) (0.08)
Effective income tax rate 46.22% (20.34%)
2021 2020
26. Trust Operations
Export letters of credit-confirmed 793,799,435 747,477,995
Securities and other properties (other than deposits) held by the Bank in fiduciary or agency Deficiency claims receivable 668,694,286 587,055,543
capacities for clients and beneficiaries are not included in the accompanying statements of financial Outstanding guarantees 567,696,530 674,743,018
position since these are not assets of the Bank (Note 27). Cross interest swap payable 377,392,600 355,370,200
Cross interest swap receivable 374,997,500 374,997,500
In connection with the trust business of the Bank, government securities with total face value of
Inward bills for collection 184,715,822 272,787,780
P89.0 million as of December 31, 2021 and 2020 are deposited with the BSP in compliance with the
requirements of the General Banking Law. Financial futures 101,998,000 264,126,500
Outward bills for collection 6,039,411 9,373,081
Late deposits and payments received 5,698,158 7,353,817
Items held for safekeeping 534,228 604,634
27. Commitments and Contingent Liabilities
Items held as collateral 8,493 9,215
In the normal course of the Bank’s operations, there are outstanding commitments and other Broker customer securities account − 3,257,972,525
contingent liabilities which are not reflected in the accompanying financial statements. The Bank
does not anticipate material losses from these commitments and contingent liabilities.
28. Related Party Transactions
Commitments and contingencies
The following is a summary of contingencies and commitments of the Bank with the equivalent peso
Parties are considered to be related if one party has the ability, directly or indirectly, to control
contractual amounts:
the other party or exercise significant influence over the other party in making financial and
operating decisions or if they are subject to common control or common significant influence such
2021 2020 as subsidiaries and associates of subsidiaries or other related parties. Related parties may be
Currency swap receivable P26,728,819,100 P2,652,027,700 individuals or corporate entities.
Forward exchange bought 20,409,044,202 10,733,372,542
The Bank has several business relationships with related parties. Transactions with such parties
Forward exchange sold 20,208,943,453 10,737,114,619
are made in the ordinary course of business and on substantially same terms, including interest
Non-deliverable swap payable 13,055,744,000 960,460,000 and collateral, as those prevailing at the time for comparable transactions with other parties.
Non-deliverable swap receivable 12,920,685,000 961,200,000 These transactions also did not involve more than the normal risk of collectability or present other
Trust department accounts (Note 26) 7,507,544,250 7,379,339,379 unfavorable conditions.
Spot exchange sold 5,547,421,186 −
Transactions with Retirement Plan
Spot exchange bought 5,547,410,000 −
The retirement fund of the Bank’s employees with fair value amounting to P270.4 million and
Interest rate swap payable 2,250,000,000 2,350,000,000 P287.6 million as of December 31, 2021 and 2020, respectively, is being managed by the Bank’s Trust
Interest rate swap receivable 2,250,000,000 2,350,000,000 Department. The transaction was made substantially on the same terms as with other individuals
Unused commercial letters of credit 805,602,924 1,216,534,791 and businesses of comparable risks. Other than deposits with the Bank and trust fees, there were no
Non-deliverable forward receivable 764,985,000 − other material transactions between the retirement fund and the Bank in 2021 and 2020. Deposits
with the Bank amounted to P25.0 million and P0.1 million in December 31, 2021 and December 31,
Non-deliverable forward payable 752,970,000 −
2020, respectively. The Bank earned P2.7 million and P3.0 million of trust fees for the years ended
(Forward) December 31, 2021 and December 31, 2020, respectively.
Refer to Note 20 for the details of the assets and investments of the retirement fund. The retirement
fund of the Bank does not have investments in the shares of stock of the Bank.

Remunerations of Directors and Other Key Management Personnel Outstanding Balance /Volume
Key management personnel are those persons having authority and responsibility for planning, 2021 2020 Nature, Terms and Conditions
directing and controlling the activities of the Bank, directly or indirectly. The Bank considers the
members of the Executive Committee to constitute key management personnel for purposes of Bills payable P11,372,777,000 P2,209,058,000 Short-term foreign currency borrowings
PAS 24. Net availment 9,163,719,000 6,702,702,000
Compensation of key management personnel included under ‘Compensation and fringe benefits’ in Accrued interest 29,649,507 34,242,010 Accrued interest expense on bills payable,
the statements of income follows: payable subordinated loan and interest rate swaps
2021 2020 Subordinated debt 1,993,568,187 1,992,648,990 Direct, unconditional, unsecured and
Salaries and other short-term benefits P131,882,632 P133,066,624 subordinated obligation of the Bank
Post-employment benefits 9,499,308 2,890,051
P141,381,940 P135,956,675 Interest expense 144,969,183 200,011,903 Interest expense on interest rate swaps, bills
payable, subordinated loan and deposit
Other Related Party Transactions liabilities
Other related party transactions entered in the normal course of business were primarily regular
banking transactions. The Bank settles its related party transactions in cash. The significant year- Other related parties
end account balances with respect to related parties included in the financial statements follow:
Due from other banks – 89,369,708 Various foreign currency demand deposit
Outstanding Balance /Volume accounts, non-interest bearing and no
2021 2020 Nature, Terms and Conditions impairment
Parent Company
Due from other banks P72,863,147 P24,196,085 Foreign currency demand deposit accounts, Loans and receivables 189,470,000 158,470,000 Revolving credit line with maturity of two
non-interest bearing and no impairment years bearing 4.50% interest rate, fully
secured by hold-out deposits amounting to
Accounts receivable 531,182 1,680,429 Receivables for various administrative US$20 million and no impairment
expenses, due on demand, non-interest Availments 189,470,000 158,470,000
bearing, unsecured and no impairment Settlements 158,470,000 129,600,000
Accrued interest − − Accrued interest income on interest rate
receivable swaps Accounts receivable 731,465,782 600,694,616 Receivable subject to interest rate based on
one-month BVAL plus 1%, with a maturity
Interest income − 548,894 Interest income from interbank loans of 10 years secured by deposit hold-out
receivable, interest rate swaps and due and no impairment. Also includes various
from other banks administrative expenses
Financial assets at 3,780 2,215,844 Derivative assets (liabilities) on foreign Accrued interest 1,239,920 1,111,226 Accrued interest income on loans and
FVPL currency forwards and interest rate swaps receivable receivable
Trading gain 3,780 308,790 Mark-to-market gain from trading derivatives Interest income 15,736,226 22,580,428 Net interest income from interbank loans
receivable, loans and receivables, interest
rate swaps and due from other banks
Deposit liabilities 2,193,442,572 1,528,128,239 Savings and demand deposits
Deposit liabilities 1,287,526,195 2,439,814,540 Savings, demand, and time deposits

(Forward)
(Forward)
Outstanding Balance /Volume Subordinated debt

2021 2020 Nature, Terms and Conditions On October 3, 2017, the Bank and the Parent Company entered into a subordinated loan agreement
(the Agreement) whereby the Parent Company agreed to make a subordinated loan available to
Accrued interest 67,321 82,135 Accrued interest expense on time deposits the Bank in the aggregate amount of P2.0 billion. The term of the subordinated loan shall be 10
payable years from October 4, 2017, the drawdown date. Among the significant terms and conditions of the
agreement are:
Interest expense 5,491,237 8,734,231 Interest expense on interest rate swaps, bills
payable and deposit liabilities (a) The subordinated loan shall constitute direct, unconditional, unsecured and subordinated
obligation of the Bank. In the event of winding up or liquidation of the Bank, the claims of the
Service charges, fees 88,474,643 32,692,071 Transaction fees from various services Parent Company against the Bank will be subordinated in right of payment to the claims of
and commissions rendered including bancasurrance fees the depositors and all other unsubordinated creditors of the Bank and will rank at least pari
passu in right of payment with all other subordinated obligations, present and future, of the
Bank. However, claims in respect of the subordinated loan will rank in priority to the rights
IT expenses 70,152,830 70,491,386 IT Support Services received from MSS
and claims of holders of subordinated liabilities which by their terms rank or expressed to rank
in right of payment junior to the subordinated loan and all classes of equity securities of the
Employee benefits 37,363,448 35,191,600 Life and medical insurance premiums for Bank, including holders of common shares and preferred shares.
bank employees
(b) The Parent Company shall not be entitled to set off any amount it owes to the Bank against the
Retirement fund of the subordinated loan.
Bank
Deposit with the Bank 25,008,123 74,743 This deposit earns annual fixed interest (c) The Bank has option to prepay, in full or in part, the subordinated loan on any call date
provided that at least thirty (30) business days before the call date, a notice in writing shall be
Interest income 963,537 2,021,915 rates ranging from 0.25% to 3.25%.
delivered to the Parent Company. Any such notice given by the Bank shall be irrevocable. On
Other related parties are other companies owned and controlled by the Bank’s Parent Company. the call date, the Bank shall pay to the Parent Company the principal amount to be prepaid
plus any accrued interest. Any prepayment shall be subject to the approval of the BSP.
Service fee income
On December 15, 2010, the Bank entered into an agreement with Maybank International Labuan (d) The interest payable on the principal amount of the subordinated loan shall be at the initial
Limited (MILL) whereby the Bank shall perform account management in its favor. This will include interest rate, which is the sum of the initial spread and the initial benchmark rate, which is
the conduct of annual review on the account and collection. The Bank shall charge MILL a service 5.50%. The Bank shall pay accrued interest on the outstanding subordinated loan every six (6)
fee of 0.30% of the average US$ value of loans and investments booked by MILL per annum months and the first payment shall be six (6) months after the drawdown date.
beginning July 1, 2010 until such time that the agreement shall be terminated. Service fees earned
from MILL amounted to P4.0 million for the years ended December 31, 2021 and 2020, respectively (e) The subordinated loan has a loss absorbency feature at the point of non-viability. As such, the
(Note 22). subordinated loan can absorb losses upon the occurrence of a trigger event through a write-
off mechanism. A non-viability trigger event is a deviation from a certain level of Common
On December 18, 2016, the Bank entered into a Bancassurance Agreement with Asianlife & General Equity Tier 1 Ratio, inability of the bank to continue business, or any other event as may be
Assurance Corporation (now Etiqa Life General Assurance Philippines (ELGAP)), an entity under the determined by the BSP, whichever comes earlier.
common control of the Parent Company, for a period of ten (10) years. On February 10, 2021, the
Bank entered into another Bancassurance Agreement with ELGAP for a period of 15 years. Under In 2021 and 2020, interest expense on subordinated loans included in ‘Interest expense on bills
the Bancassurance Agreements, the Bank shall receive service fees and commissions for acting as payable and other borrowings’ amounted to P112.4 million and P112.7 million, respectively.
ELGAP’s distribution channel for its insurance products. Unearned bancassurance income as of
December 31, 2021 amounted to P466.7 million. In 2021 and 2020, the Bank earned service fees and Life, health and medical insurance
commissions amounting to P83.3 million and P28.4 million, respectively (Note 22). On February 14, 2020, the Bank and ELGAP signed a Memorandum of Agreement (the
MOA) designating the latter as the official life and health insurance provider for the Bank’s
employees and enrolled dependents effective January 1, 2020. In 2021 and 2020, the Bank paid
a total insurance premium amounting to P38.4 million and P35.2 million, respectively.

IT Services Financial Liabilities

In 2014, MPI signed an agreement with Maybank Shared Services Sdn. Bhd. (MSS) wherein the latter
would provide IT support services to MPI which are broadly categorized into IT Back Sourcing, IT December 31, 2021
Mandays, and Regional Projects or Information Technology Transformation Programme. Effect of remaining rights of set-off
(including rights to set- off financial
Gross amounts Net amount collateral) that do not meet PAS 32
Financial liability offset in presented in offsetting criteria
recognized at Gross carrying accordance with statements of Fair value
29. Offsetting of Financial Assets and Liabilities end of reporting amounts (before the offsetting financial position Financial of financial
period by type offsetting) criteria [a-b] instruments collateral Net exposure
The amendments to PFRS 7 require the Bank to disclose information about rights of offset and [a] [b] [c] [d] [c-d]
related arrangements (such as collateral posting requirements) for financial instruments under an Derivative
enforceable master netting agreements or similar arrangements. The effects of these arrangements liabilities (Note 17) P219,594 P– P219,594 P– P109,297 P110,297
are disclosed in the succeeding tables (amounts in thousands): Total P219,594 P– P219,594 P– P109,297 P110,297
Financial Assets December 31, 2020

Effect of remaining rights of set-off
December 31, 2021 (including rights to set- off financial
Gross amounts Net amount collateral) that do not meet PAS 32
Financial liability offset in presented in offsetting criteria
collateral) that do not meet PAS 32 recognized at end Gross carrying accordance with statements of Fair value
Financial assets Gross amounts Net amount
offsetting criteria of reporting period amounts (before the offsetting financial position Financial of financial
recognized offset in presented in
by type offsetting) criteria [a-b] instruments collateral Net exposure
at end of Gross carrying accordance with statements of Fair value
reporting amounts (before the offsetting financial position Financial of financial [a] [b] [c] [d] [c-d]
period by type offsetting) criteria [a-b] instruments collateral Net exposure Derivative
[a] [b] [c] [d] [c-d] liabilities (Note 17) P164,574 P– P164,574 P112,089 P– P52,485
SPURA P4,740,095 P– P4,740,095 P– P4,740,199 P– Total P164,574 P– P164,574 P112,089 P– P52,485

Derivative assets
(Note 17) 330,955 – 330,955 109,297 – 221,658
Total P5,071,050 P– P5,071,050 P109,297 P4,740,199 P221,658 30. Notes to Statements of Cash Flows
Non-cash additions to investment properties and other properties acquired in settlement of loans
December 31, 2020
amounted to P204.5 million and P1.1 billion, and P85.5 million and P0.9 billion, respectively, for the
years ended December 31, 2021 and 2020, respectively.
Gross amounts Net amount
Financial assets offset in presented in collateral) that do not meet PAS 32
recognized at Gross carrying accordance with statements of offsetting criteria Changes in liabilities arising from financing activities
end of reporting amounts (before the offsetting financial position Financial Fair value of
period by type offsetting) criteria [a-b] instruments financial collateral Net exposure
January 1, 2021 Cash flows Others December 31, 2021
[a] [b] [c] [d] [c-d]
Liabilities from financing activities
SPURA P946,563,080 P– P946,563,080 P– P946,816,919 P–
Derivative assets Bills payable P2,209,058,000 P9,163,719,000 P− P11,372,777,000
(Note 17) 136,901 – 136,901 112,089 – 24,812 Subordinated debt 1,992,648,990 − 919,197 1,993,568,187
Total P946,699,981 P– P946,699,981 P112,089 P946,816,919 P24,812 P4,201,706,990 P9,163,719,000 P919,197 P13,366,345,187
In 2021, availments and settlements of bills payable amounted to P1,150.9 billion and P1,141.7
billion, respectively.
January 1, 2020 Cash flows Others December 31, 2020 December 31, 2021 December 31, 2020
Liabilities from financing activities Gross Gross
Bills payable P8,911,760,000 (P6,702,702,000) P− P2,209,058,000 Amount % Amount %
Subordinated debt 1,991,777,972 − 871,018 1,992,648,990
Real estate activities P14,447,708 29.15 P13,375,682 22.47
P10,903,537,972 (P6,702,702,000) P871,018 P4,201,706,990
Consumer 8,817,705 17.79 9,886,261 16.61
Wholesale and retail trade 7,748,709 15.63 9,790,522 16.45
In 2020, availments and settlements of bills payable amounted to P541.0 billion and P547.7 billion, Transportation and storage 3,485,865 7.03 5,006,283 8.41
respectively. Electric, gas, steam and air-conditioning supply 3,250,465 6.56 3,525,204 5.92
Other service activities 2,530,609 5.11 3,781,964 6.35
31. Approval for the Release of the Financial Statements Construction 1,870,823 3.77 2,913,268 4.89
Manufacturing 1,833,096 3.7 2,546,981 4.28
The accompanying financial statements of the Bank were approved and authorized for issue by the Agriculture, forestry and fishing 1,568,878 3.17 1,761,423 2.96
BOD on April 13, 2022. Human health and social work activities 1,384,719 2.79 2,079,970 3.49
Education 1,130,444 2.28 1,364,821 2.29
32. Supplementary Information Required Under BSP Circular 1074 Accommodation and food service activities 1,028,047 2.07 3,030,698 5.09
Financial and insurance activities 413,753 0.83 370,432 0.62
Presented below is the supplementary information required by BSP under Appendix 55 of BSP Mining and quarrying 57,503 0.12 93,536 0.16
Circular 1074 to be disclosed as part of the notes to financial statements. This supplementary P49,568,324 100.00 P59,527,045 100.00
information is not a required disclosure under PFRS.
Regulatory Reporting
Basic quantitative indicators of financial performance BSP Circular No. 772 requires banks to compute their net nonperforming loans (NPLs) by deducting the
The following basic ratios measure the financial performance of the Bank: specific allowance for credit losses on the total loan portfolio from the gross NPLs. The specific allowance
for credit losses shall not be deducted from the total loan portfolio in computing the NPL ratio.
2021 2020
Return on average asset (ROA) 0.38% (1.29%)
NPLs of the Bank are as follows:
Return on average equity (ROE) 3.06% (10.88%)
2021 2020
Net interest margin over average earning assets (NIM) 4.24% 4.78%
Gross NPLs P4,305,435,563 P4,747,615,609
Description of capital instruments issued Less: Deductions as required by the BSP 2,401,813,393 2,131,879,441
As of December 31, 2021 and 2020, the Bank has two classes of capital stock, preferred and common Net NPLs P1,903,622,170 P2,615,736,168
stocks.
According to BSP Circular 941 Amendments to the Regulations on Past Due and Non−Performing
Significant credit exposures Loans effective January 1, 2018, loans are considered non-performing, even without any missed
The BSP considers that loan concentration exists when total loan exposure to a particular industry or contractual payments, when it is considered impaired under existing accounting standards,
economic sector exceeds 30.00% of total loan portfolio. Identified concentration of credit risks are classified as doubtful or loss, in litigation, and/or there is evidence that full repayment of principal
managed and controlled (amounts in thousands). and interest is unlikely without foreclosure of collateral, if any. All other loans, even if not considered
impaired, shall be considered non-performing if any principal and/or interest are unpaid for more
than ninety (90) days from contractual due date, or accrued interests for more than ninety (90)
days from contractual due date, or accrued interests for more than ninety (90) days have been
capitalized, refinanced, or delayed by agreement.

Status of loans Information on related party loans

Information on the amounts of performing and non-performing loans (NPLs) and receivables (gross In the ordinary course of business, the Bank enters into loans and other transactions with its
of allowance for impairment and credit losses) of the Bank are as follows: affiliates, and with certain directors, officers, stockholders and related interests (DOSRI).
Under the Bank’s policy, these loans and other transactions are made substantially on the same
terms as with other individuals and businesses of comparable risks and are settled in cash.
2021 2020
Performing Non-Performing Total Performing Non-Performing Total The amount of individual loans to DOSRI, 70.00% of which must be secured, should not exceed
Loans and discounts the amount of their respective deposits and their respective investments in the Bank.
Corporate lending P10,065,544,919 P1,202,276,171 P11,267,821,090 P13,618,184,554 P1,381,641,256 P14,999,825,810 These limits do not apply to loans secured by assets considered as non-risk as defined in the
Commercial lending 2,560,958,309 688,724,025 3,249,682,334 2,616,249,344 142,154,000 2,758,403,344 regulations. In the aggregate, loans to DOSRI generally should not exceed the lower of the Bank’s
Consumer lending
total regulatory capital or 15.00% of the total loan portfolio. As of December 31, 2021 and 2020, the
Bank is in compliance with these regulatory requirements.
Auto 20,503,457,970 1,924,763,212 22,428,221,182 26,501,857,101 2,441,881,518 28,943,738,619
Housing 11,227,290,754 445,168,413 11,672,459,167 10,876,160,180 673,923,366 11,550,083,546 BSP Circular No. 423, dated March 15, 2004, amended the definition of DOSRI accounts. Further, the
Others 909,636,206 44,503,742 950,139,948 1,166,978,613 108,015,469 1,274,994,082 BSP issued BSP Circular No. 464, dated January 4, 2005, clarifying the definition of stockholders.
P45,266,888,158 P4,305,435,563 P49,568,323,721 P54,779,429,792 P4,747,615,609 P59,527,045,401
The following table shows information relating to related party loans of the Bank:
Loans per security
As of December 31, 2021 and 2020, secured and unsecured NPLs of the Bank are as follows: 2021 2020
Related Related
2021 2020 Party Loans Party Loans
Secured P2,855,690,540 P3,605,587,966 (inclusive of (inclusive of
Unsecured 1,449,745,023 1,142,027,640 DOSRI Loans DOSRI Loans) DOSRI Loans DOSRI Loans)
P4,305,435,563 P4,747,615,606 Total outstanding loans (in thousands) P995,174 P995,174 P845,471 P845,471
Percent of DOSRI/Related Party loans
The following table shows the breakdown of loans as to secured and unsecured and the breakdown granted before effectivity of BSP
of secured loans as to type of security (amounts in thousands): Circular No. 423 to total loans − − − −
Percent of DOSRI/Related Party loans
granted after effectivity of BSP
Circular No. 423 to total loans 1. 84% 1. 84% 1. 45% 1. 45%
Amount % Amount % Percent of DOSRI/Related Party loans
Secured by: to total loans 1.84% 1.84% 1.45% 1.45%
Chattel P22,374,075 45.14 P29,011,504 48.74 Percent of unsecured DOSRI/Related
Real estate 13,993,055 28.23 14,277,472 23.98 Party loans to total DOSRI/Related
Deposits hold-out 1,282,283 2.59 1,600,717 2.69 Party loans − − − −
37,649,413 75.95 44,889,693 75.41 Percent of past due DOSRI/Related
Party loans to total DOSRI/Related
Unsecured 11,918,911 24.05 14,637,352 24.59 Party loans − − − −
P49,568,324 100.00 P59,527,045 100.00 Percent of nonperforming DOSRI/
Related Party loans to total DOSRI/
Related Party loans − − − −
Total outstanding DOSRI/Related Party loans include portion of loans covered by hold-outs on 2021 2020
deposit and which are excluded in determining compliance with the aggregate ceiling. Currency swap receivable P26,728,819,100 P2,652,027,700
Section X327 of the Manual of Regulations for Banks (MORB) states that transactions covered for loans Forward exchange bought 20,409,044,202 10,733,372,542
to be classified as loans to DOSRI, shall refer to transactions of the Bank which involve the grant of any Forward exchange sold 20,310,941,453 11,001,241,119
loan, advance or other credit accommodation in any form whatsoever, whether renewal, extension or Non-deliverable swap payable 13,055,744,000 960,460,000
increase. Thus, a non-DOSRI loan which, during its term, becomes subject to an event that results to Non-deliverable swap receivable 12,920,685,000 961,200,000
any of the positions/relationships enumerated under Section X326.1 of the MORB shall remain a non- Trust department accounts 7,507,544,250 7,379,339,379
DOSRI loan unless the same is renewed, extended or increased at any time.
Spot exchange sold 5,547,421,186 −
Total interest income on the DOSRI loans and receivable amounted to P15.74 million and Spot exchange bought 5,547,410,000 −
P22.58 million for the years ended December 31, 2021 and 2020, respectively. Interest rate swap payable 2,250,000,000 2,350,000,000
Interest rate swap receivable 2,250,000,000 2,350,000,000
For the years ended December 31, 2021 and 2020, interest rates on DOSRI loans ranged from 2.00% Unused commercial letters of credit 805,602,924 1,216,534,791
to 4.50%.
Export letters of credit-confirmed 793,799,435 747,477,995
Commitments and contingencies Non-deliverable forward receivable 764,985,000 −
The following is a summary of contingencies and commitments of the Bank with the equivalent peso Non-deliverable forward payable 752,970,000 −
contractual amounts: Deficiency claims receivable 668,694,286 587,055,543
Outstanding guarantees 567,696,530 674,743,018
Inward bills for collection 184,715,822 272,787,780
Outward bills for collection 6,039,411 9,373,081
Late deposits and payments received 5,698,158 7,353,817
Items held for safekeeping 534,228 604,634
Items held as collateral 8,493 9,215
Broker customer securities account − 3,257,972,525

Tax Assessments and Cases

33. Supplementary Information Required Under Revenue Regulations 15-2010 As of December 31, 2021, the Bank does not have any tax cases outstanding or pending in courts or
bodies outside the BIR.
The BIR issued RR 15-2010, to amend certain provisions of RR 21-2002. The Regulations provide that
the notes to the financial statements will include information on taxes and licenses paid or accrued The Bank received Final Assessment Notice (FAN) for taxable year 2017 from the Bureau of Internal
during the taxable year. Revenue (BIR) dated April 15, 2021 on the same date. The FAN was issued as a result of the
investigation of the BIR for alleged tax liabilities of the Bank amounting to P1.98 billion, broken
To comply with the requirements set forth in RR 15-2010, the Bank reported and/or paid the down as follows:
following types of taxes during the period:
Income tax P1,575,400,376
Gross receipts tax (GRT) and Documentary stamp tax (DST)
Under the Philippine tax laws, financial institutions are subject to percentage and other taxes as well Gross receipts tax 26,693,292
as income taxes. Percentage and other taxes paid by the Bank consist principally of GRT and DST. Expanded withholding tax 6,998,521
Fringe benefits tax 89,993,784
Other Taxes and Licenses Final withholding tax on interest 195,852,689
This includes all other taxes, local and national, including real estate taxes, licenses and permit fees Documentary stamp tax 86,252,373
lodged under the ‘Taxes and licenses’ account in the Bank’s statements of income.
Compromise penalties 265,000
For the year ended December 31, 2021, GRT, DST and other taxes and licenses consist of the P1,981,456,035
following:
On May 14, 2021, the Bank submitted a protest letter and request for reconsideration to dispute
such alleged tax liabilities. As of date, the BIR has not issued yet the Final Decision of Disputed
Gross receipts tax P382,298,282 Assessment (FDDA).
Documentary stamp tax 204,197,299
License and permit fees 29,415,868 The Bank has also received an undated Preliminary Assessment Notice (PAN) for the taxable year
Real estate taxes 3,892,257 2018 from the Bureau of Internal Revenue (BIR) on February 11, 2022. The PAN was issued as a result
of the investigation of the BIR for alleged tax liabilities of the Bank.
Registration fees 37,000
P619,840,706 On February 28, 2022, the Bank submitted a reply letter to the PAN to dispute such alleged tax
liabilities.
Withholding Taxes
Details of withholding taxes for the year ended December 31, 2021 are as follows:
Total Amount Balance as at

Remitted December 31
Final withholding taxes P76,119,002 P7,014,756
Expanded withholding taxes 173,671,011 12,199,000
Withholding taxes on compensation and benefits 213,954,695 26,054,583
Final withholding VAT 2,532,067 217,767
P466,276,775 P45,486,106
Products and
Services
M
aybank Philippines, Inc. offers a wide array of Yippie and ImTeen Savings Account
financial solutions and facilities that support Teach children the value of saving
and enable the aspirations of its customers. • A savings account for children 17 years old
The Bank continuously strive to innovate and create and below
products and services that are aligned to the evolving • Comes with a passbook and free Regional
needs of the communities it serves and the market in ATM card
general, helping bridge the financial divide for all. • Free Personal Accident Insurance with
Medical Reimbursement Benefit
DEPOSIT PRODUCTS
Classic ADDvantage 5-year Time Deposit

Uncomplicated effortless banking Take advantage of the time of your life
• Traditional Savings, Checking and Time Deposit Accounts • A fixed-interest time deposit account
for 5 years + 1 day term
Save n’ Protect Savings Account • Tax-free for individual accounts
Peace of mind at a higher level
• Comes with a passbook and Regional ATM card US Dollar Savings Account
• With Free Life Insurance Coverage of up to Save in USD, Earn interest in USD
Php 5,000,000 • A regular interest-earning dollar
savings passbook account
Premier 1 Checking Account
All you need in a Checking Account US Dollar Time Deposit Account
• A specialized checking account with tier-based interest Maximize your dollars’ earning potential
provision depending on the number of withdrawals Earn more with higher rates with an
and the account’s daily ending balance affordable US Dollar product
• Comes with a record book for itemized posting
of inward checks
• With free Regional ATM card

ELECTRONIC BANKING PRODUCTS Money2u Remittance

Before you take over the world, let us first take care of you
M2U • Same day crediting to your Maybank account and
Enjoy the convenience of online banking transactions at within 24 hours to other banks
your own place and pace with M2U Internet and Mobile • Receive remittances worldwide
Banking. Bank safely with our double-layered security • First 2 monthly withdrawal charges are waive
feature using a Transaction Authorization Code (TAC)
which is sent to your registered mobile number every Maybank ATM
time you transact. Your other passport
• View your deposit, loan, and credit card accounts • Access your account at any Maybank ATMs in
• Transfer funds to your own or to third-party Malaysia, Singapore, Brunei, Cambodia and Vietnam.
Maybank accounts and even to other BancNet • Use your card in Bancnet or Megalink ATMs
member bank accounts. in the Philippines
• Pay your bills • Pay your bills anytime via ATM or M2U
• Reload your prepaid mobile phone, other prepaid • Internet Banking
and other e-Wallet accounts • Shop at any POS-enabled merchant
• Convert your dollar to peso establishments nationwide
• Make a time deposit placement • Transfer funds real time from your Maybank account
• Request for checkbook to accounts in other BancNet banks
• Perform stop payment order • Get access to your account anytime, anywhere
• Request for Credit Card EzyCash via M2U Internet
iSave Savings Account

• Open an account online.
• No initial deposit and zero maintaining balance required
• Withdraw for free in all BancNet ATMs in the Philippines
• Deposit to over 13,000 touch points nationwide
Products and
Services
Truck Loans • Earn one (1) Asia Miles or Krisflyer mile for every
Purchase brand new, used or reconditioned Php 50 spend anywhere
trucks and borrow up to 60% of the • Enjoy 1% cashback on overseas spend Worldwide
vehicles cash price or appraised value. golf privileges
Repayment terms are up to 36 months. • Cross-border treats in Malaysia, Singapore, Indonesia
and Cambodia
Auto Refinancing
A quick loan using owned motor vehicles Maybank - Manchester United Credit Card
up to 60% of the vehicle’s appraised value Be Part of the Team
and repayment terms up to 24 months. • 5X TREATS Points when Manchester United wins
a Premier League Match
enAble Personal Loan • 10x TREATS Points for purchases at United Direct
Now you can! Online Megastore
• A no – collateral loan which can • 10% Discount at United Direct Online Megastore
be used to pay-off credit card bills, and Outlet
medical expenses, tuition fees, • 10% Discount at Red Café, Old Trafford on food
travel/vacation, home furnishings or and drinks
purchase of high-end appliances and • 20% Discount on Manchester United Stadium and
CONSUMER LOANS electronic products. Enjoy competitive Museum Tour tickets (only upon purchase at the
rates and terms up to 36 months, at Old Trafford Football Ground)
Home Loans attractive and affordable rates • Cross-border treats in Malaysia, Singapore, Indonesia
Enjoy big advantage in building your and Cambodia
dream home. Available for your purchase of residential house
and lots, vacant lots, townhouses or condominium units, Maybank Credit Card Standard/Classic and Gold Maybank Visa Infinite Credit Card
for building or construction of your dream home, or for Enjoy financial flexibility Exclusive to Maybank Premier Members
refinancing of your existing housing loan. Borrow as much as • Available in MasterCard and Visa The Maybank Visa Infinite Credit Card is the ultimate
80% of the property’s appraised value at flexible terms and • Financial flexibility through Maybank EzyPlans travel companion to the privileged few.
longer repayment period of up to 20 years. (EzyPay, EzyTransfer, EzyConvert and EzyCash)
• Cross-border treats in Malaysia, Singapore, Indonesia 1% Cashback on Overseas Spend * Lowest Issuer’s Service Fee
Auto Loans and Cambodia on Foreign Currency Transactions * Complimentary Airport
Owning made easy Lounge Access * Travel and Accident Insurance Coverage
• Designed for the acquisition of brand new and pre-owned Maybank Credit Card Platinum
vehicles with a one-day approval and repayment term of Experience The Best Of Both Worlds Find out more at www.maybank.com.ph/visainfinite
up to 60 months. • Available in MasterCard and Visa

WEALTH MANAGEMENT Lifestyle Privileges Night Depository Box

Maybank Visa Infinite Credit Card. Only our well-travelled • Secure and safe deposit solution for businesses operating
Maybank Premier Premier clients can gain access to exclusive privileges that come beyond banking hours, weekends and holidays. Deposits
Turn Your Inspiration Into Reality with this credit card, including 1% cashback on overseas spend are kept safe until they can be counted and verified the
Carefully crafted and specialized suite of product offerings, next banking day.
benefits and privileges to address our clients’ unique financial CASH MANAGEMENT SERVICES
and lifestyle needs.
Collection Solutions
Wealth Solutions
Wealth Management Advisory. We help our clients create a Express Collect
financial plan tailored to their specific financial requirements • Unique deposit taking service which provides a flexible
and aspirations, enabling them to build a legacy for their and safe solution for transporting check collections from
future generations. the client’s office for deposit into their Maybank account
via the bank’s accredited motorized collector.
Research Capability. We help our clients make more informed
decisions, through first-hand access to expert wealth research Cash Collect
of the Maybank Group and invites to exclusive market • Nationwide cash pick-up service which ensures
outlook sessions. a secure, efficient and convenient solution for
transferring cash and check collections from the
Premier Benefits customer’s office into their Maybank account
Dedicated Relationship Manager. We match our clients with a
single point of contact and account handler for all their banking Over-the-counter Bills Payment
and financial requirements with Maybank. • Automated receivables solution that allows
corporate customers to collect from their
Priority Service. We provide our clients the convenience to clients via Maybank’s branches
perform all their banking needs in the comfort and privacy
of any of our Maybank Premier Centers in the country. Check Warehousing
• Outsource the management and handling
Preferential Pricing Privileges. We extend only to our select of Post Dated Checks (PDC) and generating
Premier clients preferential pricing on banking products and reports for easy reconciliation.
services, including foreign exchange.
Products and
Services
E-Gov Internet Banking Domestic

• An online payment facility managed by Bancnet for • PDDTS/RTGS – USDollar local wire fund transfer
government contributions and loans such as SSS, Maybank2E • Philpass/RTGS – Philippine PESO local fund transfer
Philhealth and Pag-ibig. • It is Maybank’s dedicated business portal covering all • PCHC Electronic Peso Clearing System (EPCS) –
aspects of cash management including management of Peso fund transfer
Payment Solutions information, payables, receivables and liquidity, and runs • SSS Local Pension Remittance – monthly auto credit
across major mobile operating systems. Its multi-channel of SSS pension; “2 banking days earlier”
Check Cutting accessibility via web browsers, laptops, personal computers,
• Allows corporate customers to outsource the check tablets and smartphones running on Android, iOS,
making and releasing activities to the bank and gives Blackberry OS 10 and Windows Phone 8, allow customers
an option to use either Corporate Checks or Maybank to view and transact anytime, anywhere.
Manager’s Checks
Regional Cash Management System
Check Master • Maybank’s corporate internet banking facility that
• Stand-alone check writing solution for the automated is capable of real-time account inquiry, local and
preparation of checks, vouchers and reports. international funds transfer, payroll crediting and
check disbursement.
Payroll Solutions
Supplier’s Collection Arrangement (SCA)
Payroll Manager • It is a collections solution for Suppliers designed to
• Hassle free payroll solution that provides convenience provide a faster and more convenient way of collecting
of paying the periodic salaries of employees into their regular check payments issued by Maybank Check
Maybank ATM accounts. Cutting clients. It is an auto-deposit arrangement of check
payments to the Maybank account of the SUPPLIERS.
Payroll Manager Plus
• Leading edge payroll solution that combines REMITTANCE
functionalities of a traditional payroll service coupled
with up-to-date software to ensure security, efficiency Local and International Fund Transfer
and cost-saving during payroll activities. • Send to and receive remittances from your relatives,
friends or business partners.
Payroll Master
• Stand alone payroll system that automates the Maybank has various EFTS (Electronic Fund Transfer
computation of the distribution of salaries and other System) to facilitate fund transfer anywhere in the
benefits directly into the employees’ ATM accounts. Philippines and abroad.

International Other Payment Services Outward Bills for Collection (OBC) Employee Benefit Trust
• SWIFT • Deposit your international checks for credit to your • Maybank Trust acts as a keeper and investment
• Money2U (from Malaysia to any Philippine local banks account after the 45-day clearing period. manager of entrusted accumulated funds for
or MPI depository) companies, their employees, or both, for use as
• Regional Switch-OTC Payment (from Maybank KL, TRUST & FIDUCIARY ACCOUNTS payments for retirement or separation benefits to
Brunei, Singapore) employees. This arrangement provides for a systematic
• MME (Maybank KL Money Express) payout center Investment Management Account (IMA) retirement plan scheme while enjoying certain tax
for Manila • This product is ideal for clients who want to diversify benefits both for the company and its employees.
• I-REMIT- payout counter their portfolio through a wide array of investment
• U.S. Veterans Affairs & Social Security (USVA-SSA) vehicles and are looking for potentially higher yields Life Insurance Trust
Direct Deposit Remittance than traditional bank products. MPI-Trust prudently • .MPI-Trust handles and distributes the proceeds of
manages investment funds according to client’s risk the assigned life insurance policy of the client for
and return objectives, investment mandate, and its the best interest and in behalf of the client’s
internal parameters. designated beneficiaries
Personal Management Trust UITF (Unitized Investment Trust Fund)

• MPI-Trust helps to create a trust portfolio which • A collective investment scheme where money from
aims to preserve the client’s assets or properties various investors are pooled together into one fund, to
for their beneficiaries’ benefit, whether it is be managed professionally by MPI-Trust, for the purpose
for future use or to answer for the client’s of achieving the intended investment objective.
beneficiaries’ current needs.
BUSINESS LOANS
Escrow Account
• MPI-Trust facilitates the delivery Revolving Credit Line (RCL)
of exchange of money, securities • Short-term loans granted for working capital purposes
or property between contracting where the amount paid is made continually available
parties who are looking for an provided it does not exceed the approved credit line.
independent third-party who
will ensure that the terms and Term Loan
conditions of their contract/ • Granted for the purpose of project financing, capital
agreement are complied with. assets acquisition/expenditures or business expansion
Products and
Services
Domestic Bills Purchase Line Letter of Credit/Trust Receipt Trade Loan

• Credit facility granted to augment the working capital of • Issued by the Bank on behalf of the importer-customer • A facility that provides financing for domestic, international,
the borrower through advance made by the Bank against for the benefit of the supplier (exporter); issued to cover and cross-border merchandise trade transactions under
current-dated checks. the purchase of goods for the final use of the buyer or Open Account, Advance Payment, Direct Remittance,
for resale. Trust Receipt financing allows the applicant Documentary Collection, and Documentary Credit
Discounting Line (importer) to take possession of the goods and to
• Credit facility granted to augment the working capital of convert the same into cash within a maximum allowable Contract-To-Sell (CTS) Financing
the borrower through the discounting of trade-related, period. Trade transactions that require TR financing may • Purchase of receivables from in-house financing
third-party post-dated checks or may not be covered by Letter of Credit. of real estate developers
Stand-by letters of Credit Receivables Financing

• A letter of credit used to guarantee payment in case of • Form of business financing wherein a supplier sells his
non-performance of the applicant/customer or payment or her trade/accounts receivables as evidenced by
to a beneficiary under a contractual obligation between invoices to a bank or financial institution at a discount
the applicant and the beneficiary so that the invoice amount can be advanced; the bank/FI
takes over collection of payment against invoices
Bank Guarantee from the supplier’s buyers.
• Issued by the Bank on behalf of its client favoring a third
party. Under the BG, the Bank agrees to indemnify/pay the Buyer Centric Supplier Finance (BCSF)
Beneficiary should the Bank’s client fails to perform or be • Otherwise known as Vendor Financing, is an Open Account
unable to pay in accordance to the terms of the contract. Trade Financing Programme that discounts a buyer/
customer’s approved credit invoices/purchase order to
Export Advance Line/Packing Credit their suppliers on a without recourse basis. The product
• Loans granted to exporters for the purchase or allows 100% financing (less interest and fees), with interest
preparation of goods for shipment against the generally borne by suppliers.
assignment to MPI of export proceeds covered by
Letter of Credit, Purchase Order or Supplier’s Credit Dealer Financing
• A Trade Financing Programme that aims to provide
Export Bills Purchased Line working capital to distributors of large principals.
• Facility granted that allows the outright Working capital funding is aimed at financing domestic
purchase of export proceeds upon transactions under open account or advance payment.
presentation of client’s export bills

GLOBAL MARKETS PRODUCTS AND SERVICES − Hong Kong Dollar • A Swap is a derivative contract through which two parties
− Japanese Yen exchange the cash flows or liabilities from two different
All trades executed by GM Sales are based on client’s − Chinese Yuan financial instruments. For example, in a currency swap
requirements and the products offered include but not limited − Singapore Dollar there is a simultaneous exchange of fixed amount of
to the buying/ selling of the following products, unless − United States Dollar currencies at different settlement dates.
otherwise restricted by Maybank Philippines, Inc. (MPI). − Malaysian Ringgit
• An FX Option (FXO) contract is an agreement under which
Fixed Income Securities Money Market Deposits / Time Deposits a seller (writer) conveys to a buyer (holder) of a contract,
• Local Currency Denominated the right but not the obligation to buy/sell a specified
− Treasury Bills (T-Bills) Derivatives quantity of a currency at a specified exchange rate,
− Fixed Rate Treasury Notes (FXTN) Financial products such as derivatives transactions may on or before a specified date
− Retail Treasury Bonds (RTB) be offered by Global Markets Sales provided that they are
− Corporate Bonds authorized derivatives for distribution in accordance to BSP • A Dual Currency Investment (DCI) is a non-principal
− Commercial Papers Circular 594 and its amendments or BSP-approved derivatives protected currency linked structured investment
− Long Term Negotiable Certificate of products under the Bank’s Type 2 expanded derivatives license. offered to qualified investors with the objective of yield
Deposits (LTNCD) enhancement in a short period of time. It consists
The following derivatives products, as approved by the BSP, of a money market deposit and an FX option (FXO).
• Foreign Currency Denominated can be offered by GM Sales provided these are suited to the
− Republic of the Philippines, offshore and client’s overall suitability profile:
onshore (ROP, ODB) − Foreign Exchange Forwards (Deliverable
− United States Treasuries (UST) and Non-deliverable)
− Other Foreign Sovereign Bonds − Foreign Exchange Swaps
− Corporate Bonds (foreign and local) − Interest Rates Swaps (IRS)
− Interest Rates Options (IRO)
Foreign Exchange − Cross Currency Swaps (CCS)
• Unless otherwise instructed by MPI Senior Management − Non-Deliverable Cross Currency Swaps (NDCCS)
and Board of Directors, Global Markets Sales is − Foreign Exchange Options (FXO)
authorized to deal all currencies that may be acceptable − Non-Deliverable Foreign Exchange
by Bangko Sentral ng Pilipinas (BSP) as follows: Options (NDFXO)
− Australian Dollar − Dual Currency Investments (DCI)
− Euro − Par Forwards
− Great Britain Pound − Flexi Forwards
Branch
Network

METRO MANILA Caloocan Global City 32nd Street LTC Malabon
BRANCHES Rizal Ave. corner 10th Ave. G/F Unit 6, Trade and G/F Legaspi Towers 300 155-C Gov. Pascual Ave.
Caloocan City 1400 Financial Tower Roxas Boulevard corner Acacia, Malabon City 1470
Ayala Alabang T (02) 8364-5545 7th Ave. corner 32nd Street P Ocampo Sr. St. T (02) 8990-4057 to 59
1st Floor Commercenter, Bonifacio Global City, Malate, Manila 1004
Alabang, Muntinlupa City Cubao Taguig City 1634 T 8521-6166 to 67 Marikina
T (02) 8842-9473 178 P. Tuazon Blvd. T (02) 8478-7961 54 Bayan-Bayanan Ave.
corner 8th Ave. Cubao Mabini Concepcion Uno,
Ayala Avenue Quezon City 1109 Greenhills G/F Metropolitan Towers Marikina City 1800
G/F Tower One & Exchange Plaza T (02) 8911-7366 G/F Unit 2 Greenhills Mansions Condominium T (02) 8571-7104
Ayala Triangle, Ayala Ave., 37 Annapolis Street 1746 A. Mabini Street (02) 8571-7105
Makati City 1200 Del Monte Greenhills, San Juan 1500 Malate, Manila 1004
T (02) 8240-9145 483 Del Monte Avenue T (02) 8721-3194 T (02) 8526-0666 Newport
(02) 8240-9803 Quezon City 1800 (02) 8721-1895 Unit R4 G/F Star Cruises Bldg.
T (02) 8365-0855 Main Office Branch 110 Andrews Avenue,
Bel Air Katipunan G/F Maybank Corporate Centre Newport City, Pasay City 1309
G/F 357 New Solid Bldg. EDSA Caloocan G/F Golan Plaza 7th Ave. corner 28th Street T (02) 8556-8583
Senator Gil Puyat Ave., Edsa corner Plata Street 333 Katipunan Ave. Loyola Bonifacio Global City,
Makati City 1200 Caloocan City 1400 Heights, Quezon City 1400 Taguig City 1634 Ortigas
T (02) 8890-4679 to 80 T (02) 8287-0288 T (02) 7738-6031 T (02) 8478-1155 loc. 3730 G/F Unit 101 Pacific Center Bldg.
(02) 8890-4839 (02) 8281-4225 San Miguel Avenue Ortigas
Las Piñas Makati Ave. Center, Pasig City 1605
Binondo Global City Burgos Circle Alabang-Zapote Rd. Street Giles Hotel corner T (02) 8706-5270
G/F Co Chin Leng Bldg. G/F ACCRALAW Tower Pamplona Tres, Makati Ave. & Kalayaan Ave. (02) 8584-9207
567-569 Quintin Paredes Street 2nd Ave. corner 30th Street Las Piñas City 1700 Poblacion, Makati City
Binondo, Manila, 1006 Bonifacio Global City, T (02) 8872-6649 T (02) 8553-8115
T (02) 8247-4576 Taguig City 1634
T (02) 8403-5485
(02) 8556-9831

Resorts World Tomas Morato Baguio Clark Lucena

G/F Events Place Maxims Hotel G/F MJB Bldg. 80 Rancho Guillermo Bldg. Pavilion 8, Berthaphil III Quezon Ave. corner
Newport City, Pasay City 1309 220 Tomas Morato Ave. corner North Drive, Baguio City 2600 Clark Center, Jose Abad Santos Lakandula Street
T (02) 8239-5649 Scout Lascano Street T (074) 423-3571 Ave., Clark Freeport Zone Lucena City, Quezon 4301
Barangay Sacred Heart, Pampanga 2000 T (042) 797-1649
Rufino Quezon City 1103 Batangas T (045) 499-2125
G/F Plaza 100 Bldg. T (02) 8929-8816 P. Burgos Street (045) 893-4386 Meycauayan
V.A. Rufino corner Dela Rosa Street Batangas City, Batangas G/F EMCCO Building
Legaspi Village, Makati City 1229 Valenzuela T (043) 980-1032 Dagupan MacArthur Highway, Calvario
T (02) 8856-5972 209-211 McArthur Highway (043) 425-0190 290 A. B. Fernandez Ave. Meycauayan, Bulacan 3020
Karuhatan, Valenzuela City 1440 Dagupan City, Pangasinan 2400 T (044) 840-8710
San Juan T (02) 3443-2014 Binan T (075) 523-1194
G/F LM Bldg. Km 35 National Highway Naga
157 F. Blumentritt Street LUZON BRANCHES Brgy San Antonio Laoag G/F Bicol Diamond
San Juan City 1500 Binan City, Laguna 4024 Brgy. 16, Villanueva Street Property Holding Inc.
T (02) 8724-3247 Alaminos T (049) 511-3032 Laoag City, Ilocos Norte 2900 Panganiban Street corner
Marcos Ave., Brgy. Palamis (049) 511-3005 T (077) 772-0050 Peñafrancia Ave. Naga City,
Sucat Alaminos City, Pangasinan 2404 (077) 770-3643 Camarines Sur 4400
8212 Dr. A. Santos Ave. T (075) 540-5458 Cabanatuan T (054) 881-1031
Brgy. San Isidro (075) 551-3368 KM 114 Maharlika Highway Lipa (054) 881-1777
Parañaque City 1700 Cabanatuan City, Nueva Ecija C.M. Recto Ave.
T (02) 8822-1781 Angeles T (044) 463-0726 corner Rizal Street San Fernando
(02) 8825-2840 McArthur Highway, Balibago (044) 463-1632 Lipa City, Batangas 4217 G/F Odette Grace Bldg.
Angeles City, Pampanga 2000 T (043) 702-1599 MacArthur Highway, Dolores
T (045) 405-0182 San Fernando, Pampanga 2000
(045) 405-0220 T (045) 961-2274
Branch
Network
Santiago Urdaneta Cebu Business Center Jaro Davao Business Center

Camacam Street City Road MacArthur Highway Zenith Central, Lot 2 Blk 19 No. 12 Lopez Jaena Street G/F HAI Bldg. Pryce Business
Santiago, Isabela 3311 Urdaneta City, Pangasinan 2428 Luzon Ave., Cebu Business Park Jaro, Iloilo City 5043 Park, JP Laurel Ave. Davao
T (078) 305-3089 T (075) 656-2401 Cebu City 6000 T (033) 503-2621 City, Davao Del Sur 8000
(075) 568-6811 T (032) 520-5425 (033) 503-2621 T (082) 321-7600
Sta. Rosa (082) 222-0328
J.P. Rizal Blvd. corner Vigan Cebu Downtown MINDANAO BRANCHES
F. Gomez Street G/F GSP Bldg. 137 Plaridel Street Davao Lanang
Sta. Rosa City, Laguna 4026 Leona Florentino corner Cebu City 6000 Butuan Nova Tierra Square
T (049) 534-1019 Plaridel Sts. Vigan City, T (032) 412-0433 Jose C. Quirino Ave. Bo. Pampanga, Lanang Sasa,
Ilocos Sur 2700 Butuan City, Agusan Del Norte 8600 Davao City, Davao Del Sur 8000
Subic T (077) 722-2836 Cebu-Mandaue T (085) 341-0224 T (082) 233-1357
G/F Formosa Tower Lot 7A (077) 7221903 Lopez Jaena Street (085) 341-0284
Block B Subic Commercial National Highway, Subangdaku
& Light Industrial Park VISAYAS BRANCHES Mandaue City, Cebu 6000 CDO Davao Monteverde
Manila Ave., Subic Bay Freeport T (032) 268-0829 Pioneer House CDO Units A and B, G/F Veterans Bldg.
Zone Zambales 2222 Bacolod (032) 268-0832 Corner A. Velez Street Monteverde Street
T (047) 250-3537 G/F R & B Bldg. and Mabini Street Davao City, Davao Del Sur 8000
(047) 250-3539 corner Hilado Street and Narra Iloilo Cagayan de Oro City, T (082) 227-8904
Street Capitol Shopping Center G/F J & B Bldg. II Misamis Oriental 9000 (082)300-9374
Tarlac Bacolod City, Negros corner Ledesma Street and T (088) 857-4439
Unit 105 & 106 A Benry Square Occidental 6100 Mabini Street, Iloilo City 5000 Zamboanga
No. 1 F Tanedo Street T (034) 435-1443 T (033) 337-9067 G/F BG Bldg. Veterans Ave.
Tarlac City, Tarlac 2300 (034) 435-0050 (033) 337-0107 Zamboanga City 7000
T (045) 491-2062 T (062) 992-6772
(045)309-0392

Maybank Corporate Centre, 7th Avenue corner 28th Street
Bonifacio High Street Central, Bonifacio Global City
Taguig City 1634 Metro Manila, Philippines
www.maybank.com.ph

Maybank Philippines 2021 Annual Report

Uploaded by

Copyright:

Available Formats

Maybank Philippines 2021 Annual Report

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Maybank Philippines 2021 Annual Report

Uploaded by

Copyright:

Available Formats

Table of

The Maybank Philippines

Our T.I.G.E.R. values guide our actions and decisions,

Make financial services simple,

2 Maybank Philippines, Inc.

Our Brand Promise Our Brand Personality

To humanise financial services is to

Leave No One behind Humble

Our Capitals Our Key Strategies Our Stakeholders

Manufactured Capital We are at the Heart of the Community. Customers

We Are Future Ready.

4 Maybank Philippines, Inc.

MPI Board of Directors

Compliance Risk Management Trust Internal Audit

Head, Financial Head, Asset Quality Joy B. Bitoy

Vacant Roger S. Diaz

Andy Keong Yong Yeoh

Islamic Finance leverage model is utilised to distribute Islamic

6 Maybank Philippines, Inc.

COMMERCIAL BANKING ISLAMIC BANKING INSURANCE & TAKAFUL ASSET MANAGEMENT

99.99% PT Maybank Indonesia 100% 99% PT Maybank

Other Subsidiaries 100% BinaFikir Sdn Bhd

35.33% Anfaal Capital^ (Investment Banking) Other subsidiaries

12 Maybank Philippines, Inc.

14 Maybank Philippines, Inc.

16 Maybank Philippines, Inc.

R eflecting on the events that transpired in 2020, this famous

18 Maybank Philippines, Inc.

20 Maybank Philippines, Inc.

2. Risk and Control

22 Maybank Philippines, Inc.

24 Maybank Philippines, Inc.

08 JUNE | BUSINESS 24 NOVEMBER | BUSINESS

Persons with Disability Affairs

26 Maybank Philippines, Inc.

28 Maybank Philippines, Inc.

30 Maybank Philippines, Inc.

Manuel G. Mark Lord D.

Abigail Tina M. Patrick Dennis Andy Yeoh

32 Maybank Philippines, Inc.

April Theresa Ma. Bernadette Atty. Gerardo

Jose A. Bernardo G. Rajagopal

34 Maybank Philippines, Inc.

36 Maybank Philippines, Inc.

President Jose A. Morales III Joy B. Bitoy Maria Luisa C. Layug

38 Maybank Philippines, Inc.

No. of Direct (D)

Mr. Manuel N. Tordesillas Non-Independent / Non-Executive 9/9 3 1 (D) 0%

Mr. Renato T. De Guzman Independent / Non-Executive 9/9 5 1 (D) 0%

Atty. Ray C. Espinosa Independent / Non-Executive 9/9 5 1 (D) 0%

Mr. Simoun S. Ung Independent/Non- Executive 9/9 2 1 (D) 0%

Mr. Jesus Roberto S. Reyes Non-Independent / Non-Executive 9/9 1 1 (D) 0%

Mr. Choong Wai Hong** Former PCEO and Director -

*Elected on 08 October 2021

40 Maybank Philippines, Inc.

Member Mr. Renato T. De Guzman 5/5

CORPORATE GOVERNANCE COMMITTEE

AUDIT COMMITTEE OF THE BOARD

Member Simoun S. Ung 7/7 Related Party Transactions Committee 2021

Member Mr. Jesus Roberto S. Reyes 6/6