UnionBank AR 2022

About UnionBank
Union Bank of the Philippines (UnionBank), a publicly UnionBank continues to receive accolades from local and international award giving bodies. These include:
listed universal bank, embraces the future of banking
and is relentless in its thrust to be a bank of enduring
greatness. As the country’s acknowledged digital “Top 2 Most “Bank of the
Six-time “Digital
pioneer, it strives to best serve the evolving needs of “Asia Pacific’s Helpful Banks in
Bank of the Year” Year 2020, in the
Filipinos everywhere. Digital Trailblazer” Asia Pacific during
by The Asset Philippines”
by IDC Asia Pacific COVID-19” by
Triple A by The Banker
UnionBank was the first among its peers to start a bank
BankQuality.com
website; spearhead online banking; launch the country’s
first electronic savings account (EON), introduce the
first chatbot, implement the first fully-digital account
opening, and fully-digital branch called The Ark,
to name a few. “Most
Four-time “Best “Domestic Retail
“Asia’s Best Bank Recommended
Retail Bank PH” Bank of the Year”
As early as 2002, the Bank has been recognized as Retail Bank
Transformation” by The Asian by Asian Banking
among Asia’s best companies by Euromoney and
from Euromoney in the PH” by
Finance Asia. It was also the country’s only bank to Banker and Finance
BankQuality.com
make it to the list of the world’s 25 soundest banks for
four consecutive years by The Banker of London —
ranking among the Philippines’ top banks in terms
of profitability and efficiency.
Embarking on its digital transformation journey in 2016, “Best Universal “Employer of the
“Best Bank for
UnionBank has since been a trailblazer. Its pivot to Bank PH” from Year” from Stevie
SMEs” Among
a new business model and transition to being a tech Capital Finance Awards for Great
by Asiamoney Many More
company with banking facilities has brought the Bank International Employers
to where it is now. UnionBank and UnionBankers have
paved the way to best-in-class, customer-centric, and
technology-driven banking and business solutions—
delivering superior customer experiences. In 2018, the
Bank established UBX, its fintech and wholly-owned Future Forward, UnionBank is determined more than ever to pursue being at the forefront of redefining
subsidiary, to provide a constant source of innovative the digital banking experience to help its customers and business clients achieve their goals.
ideas and new digital technologies. In July 2022, it
commercially launched UnionDigital, the only digital
bank owned by a publicly listed bank in the country.
In August 2022, the Bank won the deal of the decade –
the acquisition of the Citigroup’s consumer banking
business in the Philippines.
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UnionBank 2022 Annual Report
UnionBank DNA
VISION CORPORATE BRAND IDEA
To become one of the top three universal banks in the Powering the Future of Banking
Philippines by building a bank of enduring greatness
PURPOSE DISTINGUISHING BELIEFS

3
To co-create innovations for a better world Forward-Thinking | Innovative | Open | Agile
VALUES EMPLOYER BRAND

I earn the trust of my stakeholders Own the Future. Co-create Innovations.
through Integrity, Magis and Ubuntu.
INTEGRITY

I do the right thing at all times. CREDO
I am trustworthy, transparent & authentic.
I treat everyone with respect. We are a dynamic and caring team of bold, agile and
I am fair, honest and accountable for any actions. engaged experts committed to make the difference for
our stakeholders by creating meaningful experiences,
innovative services and solutions.
MAGIS
I am obsessed with the customer.
I continuously innovate.
I learn fast to build capabilities.
I achieve great results with an agile mindset.
I collaborate.
UBUNTU
I seek to understand through courageous conversations.
I give feedback, real-time and on demand.
I communicate clearly & openly.
CONTENTS
16 18 20 22
02 UnionBank DNA 18 Client Feature: 26 Client Feature: 42 Banking Every Filipino

BENCH/ and Beyond Taste Makers, Brand Builders Everywhere
06 Two-year Financial Highlights
20 Client Feature: 28 Board of Directors 44 The Bank of Tomorrow
08 Chairman’s Message Serial Success
36 Game Changers 46 Management Committee
12 President & CEO’s Report 22 Client Feature:
Crafting an Enchanting 38 Building the 50 2022 People Milestones
16 Client Feature: Beer Experience Future of Banking
Driving Success 54 Latest Awards & Recognition
24 Client Feature: 40 Big Leap for Small Businesses
Big Dreams for Small Stores 58 Key Officers
24 26
60 The CEO Awardees 2022 122 Products & Services
62 Subsidiaries 134 Brick & Mortar
66 Risk Management 140 Management Directory
70 Corporate Governance 144 Corporate Information
108 Corporate Social 145 Credits

Responsibility Initiatives
146 Financial Statements
112 Sustainability at a Glance
TWO-YEAR
FINANCIAL Consolidated Parent Bank Consolidated Parent Bank
HIGHLIGHTS in Php Bn, except ratios and per share data
2022 2021 2022 2021
in Php Bn, except ratios and per share data
2022 2021 2022 2021
Profitability Selected Ratios
Total Net Interest Income 38.9 29.8 29.1 21.7 Return on Average Equity 9.7% 11.6% 9.7% 11.6%
Total Non-Interest Income 13.3 15.3 13.1 14.7 Return on Average Assets 1.3% 1.6% 1.5% 1.6%
Total Operating Income 52.2 45.1 42.2 36.4 CET1 Capital Ratio 11.3% 16.3% 9.9% 16.2%
Allowance for Credit Losses 4.1 5.8 2.6 4.7
Tier1 Capital Ratio 11.3% 16.3% 9.9% 16.2%
Total Operating Income after
48.1 39.3 39.6 31.7 Capital Adequacy Ratio 13.0% 18.4% 11.8% 18.4%
Allowance for Credit Losses
Total Other Expenses 31.5 24.3 24.1 17.5 Per Common Share Data*
Net Income Before Tax 16.6 15.0 15.5 14.2 Cash Dividends** 2.0 2.8 2.0 2.8
Income Tax Expense 3.9 2.4 2.9 1.7
Earnings:
Net Income 12.7 12.6 12.5 12.5
Basic 6.6 8.2 6.6 8.2
Balance Sheet
Liquid Assets 174.3 207.5 132.4 159.8 Diluted 6.6 8.2 6.6 8.2
Trading & Investment Securities 333.0 237.7 323.5 233.1 Book Value 69.2 73.1 68.9 68.6
6 Loans & Receivables, Net 479.7 336.4 393.8 275.6 *Adjusted for the effect of stock dividends declared on August 11, 2021
Other Assets 105.7 49.6 117.4 59.1 **Earned for the year but declared and paid the following year
Total Assets 1,092.7 831.1 967.0 727.5 Others

Deposits 711.3 570.5 623.9 493.1 Headcount*
Other Liabilities 233.3 148.4 195.6 122.8 Officers 6,254 4,048 4,800 3,016
Total Liabilities 944.6 718.9 819.5 615.9 Staff 2,147 2,181 669 660
Total Equity 148.1 112.2 147.5 111.7 *Banking subsidiaries only
UnionBank and PSEi Rebased Stock Performance

(Base: 2017 Last Trading Date)

200%
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22
UBP PSEi
FIVE-YEAR
FINANCIAL Total Total Total Net Operating Net
Resources Loans Deposits Revenues Expenses Income
HIGHLIGHTS
479.7 711.3 52.2 31.5 14.0

1,092.7
12.6 12.7
45.1
392.6 570.5 42.1 11.6
24.3
831.1 527.8
339.5 336.4 36.7
770.8 774.5 326.2 484.3 21.4
20.3
669.5 420.7
16.7
25.5 6.9
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
Return on Return on Cost-to-Income Earnings Book Value Total Capital

Average Equity Average Assets Ratio per Share* per Share* Adequacy Ratio
1.9%
15.3% 9.2 73.1 18.4%
68.5 69.2 17.0%
65.6% 8.2
1.6% 64.0
1.5% 60.4% 7.6 61.4 15.2% 15.3%
11.5% 11.6% 55.4% 53.9% 6.6
1.3% 50.8% 13.0%
9.7%
8.8% 1.1%
4.9
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
*Adusted for the 25% stock dividends declared on August 11, 2021
8
CHAIRMAN’S MESSAGE
ON OUR JOURNEY TOWARDS
9
BUILDING A BANK OF ENDURING GREATNESS

CHAIRMAN’S MESSAGE
“We successfully integrated the Citi consumer business into UnionBank

on August 1, 2022. The new business coming from the Citi portfolio added
P99.4 billion in new assets, which allowed us to breach one trillion pesos
in total assets for the first time in our history.”
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O
ur digital transformation strategy in recent years was anchored in the middle-income and wealth banking segments. In the first five months
towards the objective of becoming a Great Retail Bank. of operations, they have not only boosted our net income by P1.7 billion, but
The long-term plan was to attain significant scale in retail banking, more importantly shifted our consumer-related business to 54% of total loans.
while maintaining a low cost-to-serve model. We have seen the We expect further revenue and cost-saving synergies once we fully migrate the
success of our strategy in the past few years with the organic growth of our business by the end of 2023.
retail customer base, as well as the shift of our business model towards more
stable and predictable recurring income streams. We commercially launched UnionDigital last July 18, 2022. In just five months
of operations, UnionDigital was able to deliver rapid growth with loans
As we continue with our journey towards building a Bank of Enduring of P5.7 billion and deposits of P9.4 billion. They are very well-positioned to
Greatness, we have identified a few key imperatives that will help us in the reach profitability in 2023, making them one of the fastest digital banks
realization of this ambition. These are the successful integration of our acquired to achieve this.
Citi Philippines consumer banking business; the launch of our fully digital bank,
UnionDigital; and the continued digitalization of the main Bank. Digital channels developed by UnionBank are now in full scale. UnionBank
Online has been a key differentiator in growing our digitally-opened accounts
We successfully integrated the Citi consumer business into UnionBank on to close to 2 million in three years’ time. Our corporate banking app called
August 1, 2022. The new business coming from the Citi portfolio added The Portal has now signed up over 36,400 corporate customers. And our SME
P99.4 billion in new assets, which allowed us to breach one trillion pesos Business Banking app was successfully launched to further support the small
in total assets for the first time in our history. It has also added close to 1 million and medium-sized businesses who need to be digitized to be more competitive.
new-to-bank customers and allowed us to further expand our base We will continue to focus on tapping ecosystems via digital platforms to further
grow our customer base and deliver a unique customer experience.
The platforms of our fintech subsidiary, UBX, are now also mainstream. A big thank you to our shareholders, who unwaveringly supported our strategic
Their lending marketplace, Seekcap, has disbursed a total of P2.7 billion initiatives through the two recent stock rights offers which brought in a total
in loans in 2022. The BUx payment gateway has generated an average of of P52 billion of additional equity to the Bank. We are happy that the market
2.8 million transactions per month. And i2i, which is our tech-up initiative recognized the value of our efforts with higher market value and trading activity
for the smaller financial institutions recorded over 1.1 million mobile ATM for our shares, propelling us back into the Philippine Stock Exchange Index.
transactions last year. These are all providing recurring revenues to the
group today. As the country’s leading Open Finance platform, UBX builds We thank our regulators for their support in maintaining UnionBank’s corporate
digital solutions that promote financial inclusion and open finance, governance posture of fairness, transparency, and accountability in the way
bringing more Filipinos and small businesses into the formal financial system. we conduct business. Furthermore, we are fully behind the government in its
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ambition for digital transformation and financial inclusion. In heeding the call to
All these digital channels and platforms, plus all other transaction banking Tech Up Pilipinas, we acknowledge that we can only grow as fast as how the
solutions that we offer, have been instrumental in growing our deposit business rest of the country grows. We will continue to cultivate the spirit of innovation,
and transaction fee-based income. It has also allowed us to expand to new resiliency, agility, and sustainability, and lead the country into the future of banking.
ecosystems and extend banking to a wider consumer and SME base.
While our preparedness has helped us secure our lead in the digital space of
Our accomplishments were made possible because of the trust and support of banking today, it is our tenacity and commitment to innovation and service that
the Bank’s various stakeholders. My sincerest gratitude goes to all UnionBankers will keep us there.
for their untiring commitment to remain customer-centric and continue their
passion for innovation. The resiliency and agility of the Bank are anchored not The Future of Banking is with U.

only on our digital infrastructure but also on our people who live and breathe
these values. Our recently inaugurated UnionBank Innovation Campus will serve
as a hub for cultivating digital talents in support of the country’s thrust towards
comprehensive digitalization.
We are also thankful to our loyal customers, who are growing and learning
with us as we digitize and discover better ways to service their needs. ERRAMON I. ABOITIZ
With millions of customers relying on us for their banking needs, we firmly Chairman
commit to continually raising the bar with initiatives such as 24/7 availability,
six sigma reliability, and secure and straight-through processing.
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PRESIDENT & CEO’S REPORT
FROM OUR GREAT LEAP FORWARD
13
WE ARE NOW GOING FOR GOLD!

W
e started the year 2022 full of optimism after
two straight years of on and off lockdowns brought
about by the pandemic. However, our resilience would
continue to be tested by various geopolitical issues
coming from the Ukraine-Russia conflict, US recession fears, and Taiwan
Strait tensions, as well as market volatility jitters brought about by
elevated global oil prices and rising demand for goods and services.
To address local inflationary pressures, the Bangko Sentral ng Pilipinas

(BSP) imposed a series of rate hikes which added up to a total of 350 basis
points at the end of the year and another 75 basis points early in 2023.
PRESIDENT & CEO’S REPORT
“In 2022, we delivered a net income of P12.7 billion, which largely

came from recurring revenues. Despite the many external challenges
during the year, we were still able to maintain our net income level
without depending on trading gains.”
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Fortunately for UnionBank, our agile ways of working and our digital Overall, our performance translated to Return on Beginning Equity of 11.2% and
transformation investments allowed us to weather these challenges by focusing Return on Average Equity of 9.7%, if we consider the P40 billion additional capital
our efforts on more sustainable and stable sources of revenues. from the Stock Rights Offer last May 2022. We are confident that we will once
again outpace industry ROE as we scale our earning assets in the next couple of
In 2022, we delivered a net income of P12.7 billion, which largely came from years by leveraging on the additional capital that our shareholders put in.
recurring revenues. Despite the many external challenges during the year,
we were still able to maintain our net income level without depending on trading Over and above our financial results, we made a commitment to undertake a
gains. Recurring income, which is predictable and more stable, will continue to five-point agenda to our shareholders last year under our Great Leap Forward.
grow as our customer base and balance sheet expand in the coming years. I am happy to report to the shareholders that we have successfully delivered
on our commitments.
Our recurring revenues amounted to a record high P52.2 billion, 16% higher
year-on-year. Net interest income jumped by 30% to P38.9 billion, mainly driven Maximize efficiency to boost profitability
by higher net interest margins and higher volumes. Despite the rising cost of We are no longer a mid-sized bank. We are growing our customer base by
deposits caused by the rate hikes of central banks globally, our net interest millions each year, which allowed us to double our base in the past three years.
margin expanded by 27 basis points to 4.9%. We successfully managed the We now have over 10 million customers, which is comparable to the largest
overall cost of funds as we grew our earning asset base because of two things – banks in the country. We are capable to scale up fast with a lean operating
consumer lending focus and sustained CASA growth. The Bank’s gross consumer infrastructure owing to the success of our digital transformation – particularly our
to total loans accounted to 54%, which is 3x industry average, providing us higher move towards DevSecOps eliminating bottlenecks in launching features, as well
yields on the asset side. Likewise, we are now on our third year of generating as the migration of our systems to the cloud enabling us to operate in a
strong CASA growth, which averaged at 29% yearly based on average daily pay-as-you-scale model.
balance since the start of the pandemic. Fee-based and other income excluding
trading income also doubled to P13.4 billion coming from card-related fees, bills CitySavings also adhered to our agile culture, as they were the first to market
payment, and digital transactions of our growing customer base. five-year term loans for teachers, allowing them to break record loan releases
in 2022. Not to mention that they now have a more diversified mass market
For the first time in the Bank’s history, our total market capitalization exceeded proposition with three profitable segments in teachers’ loans, motorcycle loans,
P200 billion with total assets amounting to over P1 trillion. and other salary loans to new ecosystems.
Accelerate recurring revenue growth of UBX Continue to harness synergies across ecosystems
UBX now has a path to profitability with three platforms generating revenues, Over the last three years, we doubled our retail customer base to more than
namely SeekCap, i2i and BUx. SeekCap has a community of over 74,000 MSMEs 10 million, which provided a sizable base for both UnionBank and UnionDigital to
and total loan disbursements of P2.7 billion in 2022. i2i has partnered with over maximize cross-sell efforts. We have also launched various initiatives to realize
3,600 mobile ATM agents and has onboarded 120 channels from rural banks and revenue synergies on the customer base of the acquired Citi consumer portfolio.
other counters. Lastly, BUx has generated P586 million in gross revenues in 2022 Once the customers are fully migrated into the UnionBank system, credit card
with average payment transactions of 2.8 million per month. holders shall be able to open a UnionBank account with just one click.
Ensure smooth transition for the acquired Citi Consumer business Moving forward, the main goal is to extend beyond the customers of the banking
Last August 1, 2022, we successfully completed the acquisition of Citigroup’s group and provide financial services to the Aboitiz Group ecosystem. Our Chief
Philippine consumer banking business, and we are pleasantly surprised that it Data and Artificial Intelligence Officer, Dr. David R. Hardoon, is leading the way in
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has exceeded all our expectations to date. We welcomed almost 1 million new reinforcing synergies through Aboitiz Data Innovation.
customers and over 1,500 employees including all of its senior leadership team
running the consumer business. Net attrition rate was beyond the norm, with less Go for Gold 2025
than 1% attrition in deposits and zero attrition on the credit card and personal UnionBank has successfully transformed the organization to be agile and digital
loans base. Likewise, between the time of the awarding of the deal and its to the core. We now have strong business growth engines, significant scale in
closure, the total earning asset base of the business grew by around P10 billion terms of number of customers, top-ranking and fast-growing consumer products,
more. The deal, as finalized, brought in P99.4 billion in total assets, comprised of plus a very positive shareholder and market confidence on our ability

P69.4 billion in gross loans, P29.7 billion in cash and liquid assets, and P4.1 billion to execute. We are in a new phase of our growth objectives as we aspire for
in other assets which included the building that houses the consumer business market leadership in retail banking.
employee base. It also brought in P65.3 billion in total deposits with 89%
CASA ratio. We are ready to be bold as we Go for Gold in 2025. We are in a stage where
we can truly become a Great Retail Bank – the largest and most profitable
Early indications coming from the acquired portfolio provide us comfort that consumer bank in the country over the next three years.
we can realize the value of the business faster than plan.
My deepest gratitude goes to our Board of Directors for their continued guidance
Commercially launch UnionDigital through all these years, to all UnionBankers for the impeccable work, and to
We built a Bank from the ground up in record time of 6 months. UnionDigital, our customers, partners, and shareholders for your enduring support and trust
our digital-only bank subsidiary was commercially launched last July 18, 2022. in the Bank. The Future indeed Begins with U.
After just five months in operations, UnionDigital is already showing a clear path
to become profitable in its first full year of operations. It booked a total of UnionBank – our Bank, our Future.
P5.7 billion in personal loans and a deposit base of P9.4 billion. The growth in its
lending portfolio is attributed to the cross-sell program anchored on UnionBank’s
large ecosystem of retail customers. Through UnionDigital, we can now extend
digital loans using alternative credit scoring models to the underserved customers
of UnionBank.
Edwin R. Bautista
President & CEO
CLIENT FEATURE
MARVIN TIU LIM,

KEVIN MCHALE YAO and ERIC LIM
Autokid
Driving
“Autokid addressed this problem by being a one-stop-shop Marvin explains, “We’re willing to take more risks and pivot
for its customers, providing not only quality trucks but also quickly as we’ve always done. Others are more conservative
a team of service experts to provide after-sales support and and slower to act. In this industry, being agile and nimble
Success
truck parts in multiple locations nationwide.” is very important.”
The company made another critical shift in 2019 when Being forward-thinking has served them well.
it entered the brand-new truck market. Marvin points out, For instance, Autokid has been IS0 9001:2015 certified
“Selling surplus trucks had challenges, including the lack since 2020. And as tech-savvy Millennials, the three founders
How Autokid Truck Solutions went from selling of warranty and customer demand for consistent quality. have embraced technology to modernize operations.
second-hand cars to the fastest-growing, nationwide, To address these issues, Autokid transitioned to selling Eric shares, “We use NetSuite Oracle to manage our
one-stop-shop for trucks brand-new trucks imported from China, providing affordable data and make quick decisions since all data from all the
options while ensuring consistent quality.” branches are centralized through our system.” Autokid can
The market was ripe for it. The economy was growing, track, manage, and optimize end-to-end processes from
businesses had more buying power, and customers importation to after-sales support. “Even the inventory is
B
ack in 2009, three church friends, still barely out of demanded newer, safer, air-conditioned trucks. online, so we can pinpoint exactly where the part is and
college, were buying and selling used cars through
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Today, Autokid is the largest authorized distributor of what bin in every branch,” he adds.
classified ads online. A little over a decade later, Dongfeng, one of the top vehicle manufacturers in China. Autokid is definitely not your typical truck dealer.
that backyard operation has become one of the country’s It sells light-duty trucks, dump trucks, cargo trucks, mixers, The company has an e-commerce website and mobile app
biggest truck distributors, with 16 branches nationwide. and tractor heads. Autokid has also added Faw Trucks, for customers to browse truck models, check specs, and buy
Autokid Truck Solutions sells and services everything Shacman, and Howo trucks to its portfolio. They are so parts. It is active on social media and has implemented an
from trucks and public utility vehicles to tankers and confident about their trucks and after-sales service that automated chatbot to serve customers 24/7.
special-purpose vehicles. From selling to private truck Autokid has exceeded the industry standard of offering a The founders also acknowledge the role their investors
owners, the company, founded by Kevin McHale Yao, one-year warranty by extending theirs to three years. and partners have played in their growth. For instance,
Eric Lim, and Marvin Tiu Lim, now also serves the public Eric shares that UnionBank was one of the first banks that
transport and government sectors. Perfect timing assisted them during their early years. He says, “UnionBank’s
So how did these young entrepreneurs manage to The company’s timing could not have been better. support has helped us grow even during the pandemic as
upend the truck industry? It’s a combination of smart The government has pressed the transportation industry we deliver better service to our customers as they develop

strategy, the right timing, and the advantages of youth. to modernize. In 2018, it started requiring trucks and other their businesses.”
vehicles to comply with Euro 4, the globally accepted Kevin adds, “UnionBank is a valuable ally for Autokid,
From cars to trucks European emission standard. providing truck financing support for our customers.
Autokid became a more serious operation in 2011 when Truck owners have to phase out older units that release Through our partnership, Autokid is able to offer flexible
the founders leased an oversized lot on G. Araneta Ave. more emissions. And PUVs, such as jeepneys and buses, financing options to businesses looking to purchase trucks
in Quezon City. Ironically, it was the only second-hand car had to modernize or risk losing their operating license. or increase their fleets. Also, UnionBank provides us with
dealership in an area known as a truck alley. This proved to be a boon for Autokid as operators had working capital as we expand our inventory.”
But four years later, they decided to import surplus to upgrade their fleets. This relentless attention to their customers ultimately
trucks coming from Japan. Kevin says they saw a bigger Aside from the public transport sector, Marvin also says explains Autokid’s success. Kevin says, “The company’s focus
opportunity with trucks: “Our entire market is anyone finding an opportunity to sell to the government proved to in providing comprehensive truck solutions to businesses
who owns a business. Almost all businesses use trucks be a significant pivot in the company’s history. “During the and commitment to customer satisfaction has helped us
to move their products.” pandemic,” he shares, “Autokid was able to import close to stand out in a crowded market.”
Marvin concurs, “We realized that customers who 1,000 mini-buses, all with committed orders.” Marvin adds, “It’s more of understanding what
bought second-hand cars were usually one-time purchasers, The company sold fire trucks, ambulances, fuel tankers, customers need and thinking of a long-term partnership,
but those who bought trucks often came back to purchase siphoning trucks, water tankers, refrigerated trucks, and not just making a quick buck but trying to help them
more, building larger fleets over time.” garbage compactors. “Whatever the government needs, promote their business. And if they like our service and
we provide,” Kevin notes. our trucks, as their business grows, the more business
One-stop shop they send our way.”
The truck industry at that time was old-school. It was Young blood
challenging to look for parts and professional services. The 30-something businessmen may not have deep
“The main pain point for truck customers and fleet owners pockets like their billionaire competitors. But they have
was the lack of parts and after-sales service,” explains Eric. turned their youthfulness into an advantage.
CLIENT FEATURE
BRYAN LIM
BENCH/
BENCH/
Expansion and evolution Bryan points out that, like in any portfolio, not all bets
To sustain its growth and keep pace with the times, pay off: “There is a learning curve. There are hits and misses,
Suyen gradually expanded into other fashion and lifestyle brands. but we persevere. We never stop learning.”
and Beyond
Bryan shares, “In 2006, when the market was starting to open up
to foreign brands, Suyen brought in The Face Shop, a growing Turning crises into opportunities
cosmetics brand in South Korea.” Suyen has gone through almost four decades of shifting
Suyen has become a powerhouse in the beauty and economic environments and changing consumer behavior.
cosmetics category, representing Bobbi Brown, Clinique, And despite its size, the company has managed to be nimble
Suyen Corporation keeps close to consumers’ Estee Lauder, Jo Malone, Kiehl’s, La Mer, Mac, Origins, and PCX. and adapt to not only changes but also crises.
pulse with a diversified lifestyle retail portfolio Its clothing business now includes 6ixty8ight, Aldo, American For instance, Suyen survived the pandemic as it closed
Eagle, Charles & Keith, Cotton On, La Senza, La Vie En Rose, its stores and transitioned online with its partnership with
Paul Smith, Pedro, Rubi, and Urban Revivo. Suyen has likewise e-commerce marketplaces and its own e-commerce website.
expanded into lifestyle brands like Typo, Mothercare, JINS, Bryan shares, “We were forced to fast-track the completion of
B
Fritz Hansen, and Dimensione. our online systems, both front and back end.”
ENCH/ is one of the most iconic brands in the Philippines.
It burst into popular culture in the early nineties with its
“In 2013, we opened our first food franchised concept from The company even turned the crisis into an opportunity. 19
France, Paul Boulangerie,” Bryan shares. “We have since spread Bryan explains that BENCH/ ramped up the production of
fashionable clothing line and groundbreaking advertising.
out to different food concepts from various countries, with sanitizing essentials under the Alcogel line and delivered them
The brand has since expanded beyond clothing and into other
Maisen, Marugame, Boat Noodle, Koi, and the like.” to their warehouses. As people stayed home, the company
areas such as beauty, home, and food. This includes BENCH/
Bryan plays an instrumental role in Suyen’s evolution. consolidated essential clothing such as t-shirts, shorts,
Body, BENCH/ Active, BENCH/ Beauty, BENCH/ Skin Expert,
He and his sisters, scions of Ver and Nenita, are active in the and underwear from its closed stores and reallocated them
BENCH/ Fix Salon, BENCH/ Barbers, and BENCH/ Café.
business. As head of business development, Bryan helps identify to its online partners. “These helped sustain sales during
With 600 stores and outlets throughout the Philippines,
potential partners, starts discussions, negotiates contracts, the lockdown,” Bryan notes.
with branches in the United States, the Middle East, and China,
and executes brand launches. “Suyen Corporation has evolved and withstood economic
BENCH/ has become a household name. But what most people
Like most Chinese-Filipino families, Bryan started working for downturns and the pandemic, yet we have remained resilient
don’t know is that Suyen also runs the Philippine operations of
the family business from the ground up, spending his early years throughout,” he adds. “These setbacks temporarily slowed
some of the biggest brands in the world, from Charles & Keith,
in product development for the brand’s undergarments section. our expansion, but we have rebounded and are back on track.”
Cotton On, and La Senza to Bobbi Brown, Clinique,
Today, he is considered as heir apparent in charge not only of

and Estee Lauder.
Suyen’s growth but also of its future. Key partnerships
“Suyen has built a diverse portfolio to include a good mix
With a growing reach and diversified portfolio, Suyen has The company also recognizes the role of its strategic partners
of local and international brands. Today, we have a total of
crafted a new mission: “Bringing the Philippines to the world, in its success. Bryan explains that Suyen has established good
39 foreign brands with a total of 1148 stores for both local
and the world to the Philippines.” business relationships with key partners such as mall developers,
and foreign brands,” says Bryan Lim, Vice President for Business
suppliers, and customers.
Development of Suyen Corporation, the company behind BENCH/.
Changing times For instance, he says, it is given priority for mall spaces in
Fashion can be fickle, but Suyen has remained relevant and key locations. With the volume of business that the company
Birth of Bench
attuned to the times. As Bryan explains, “So much has changed brings to suppliers, Suyen is also given priority service to ensure
Suyen Corporation was started in 1987 by visionary Ben
since. The market has grown, more options are available, that the business runs smoothly.
Chan and couple Ver and Nenita Lim. They initially sold men’s
and there are new ways to shop, thanks to technology. UnionBank has likewise contributed to its evolution.
t-shirts but soon added ladies’ apparel, underwear, accessories,
Filipinos have become more aware of brands and are savvier Bryan says UnionBank has opened another window of
and personal care products. “It has since evolved into a total
with their needs and wants.” electronic payment to its offline stores by accepting QR codes.
lifestyle brand,” Bryan notes.
He adds that being in the retail industry for over 35 years, “Every Filipino with an online bank account can easily pay at
Trendy fashion at affordable prices is just one explanation
Suyen is accustomed to the pulse of the market: “We can any BENCH/ store without going into the hassle of queuing
for the company’s success. What took BENCH/ to the next level
determine what the Filipino market needs, understand the for cash withdrawals,” he notes. “BENCH/ has put its effort in
was that it was a trendsetter. “When BENCH/ opened in 1987,
preferences of each segment, and try to meet that need with continuously improving and defying norms. Partnering with
we introduced celebrity-driven marketing campaigns, which were
a new concept and brand, may it be foreign or homegrown.” the most innovative bank is an advantage,” Bryan adds.
very new back then,” Bryan explains. “We also introduced an
For example, with the Philippines having largely a mass Suyen Corporation is a prime example of a company
unconventional way to display merchandise and dynamic and
market base, Bryan says they know the market’s threshold that has successfully navigated the changing retail landscape
experiential store designs. At that time, BENCH/ changed
in terms of pricing and try to match this with new offerings in the Philippines. “We continue to stay relevant and create
the game, created excitement for Filipinos, and gave them
such as its restaurant brands Marugame Udon and Boat Noodle, excitement in the brands we bring in, the products we develop,
a new way of shopping trendy, fashionable apparel.”
known for good quality food at affordable prices. Seeing the and the events we mount,” Bryan says. “We know our customers’
Bryan stresses that BENCH/ was not an overnight success,
demand for trendy wear, Suyen brought in China’s number one changing needs and continue to strive to meet their demands.”
but “it catapulted to the top by a series of small leaps, during which
fast fashion brand Urban Revivo and opened stores in key malls.
Suyen pioneered many breakthroughs, including high-concept
activation events and celebrity endorsements.”
CLIENT FEATURE
DICK & MARS BALAJADIA

DM Group of Companies
Serial
that if I wanted to take my businesses to the next level, businesses have unique needs and requirements, and we
I needed to gain more knowledge and expand my culinary strive to provide commercial spaces that meet these needs,”
skills,” he explains. He soon decided to pursue formal Mars explains. “Our commercial developments offer flexible
Success
culinary education at the California Culinary Academy layouts, modern designs, and state-of-the-art amenities that
in San Francisco. cater to the needs of businesses of all sizes.”
After getting into a spa franchise as a couple, Dick points out that their commitment to quality
Dick and Mars went all in. Success led to more success, extends to every aspect of their commercial developments,
and they launched several businesses in just over a decade. from design to construction. “We ensure that every
Through DM Group of Companies, Dick and Mars Balajadia “There are many factors we consider when we want to detail meets the highest standards, providing a premium
are creating a growing and diversified portfolio of start a new venture,” Mars explains, “We always check the experience for our clients,” he says, adding, “Our customer
business ventures competition, market, price points, and our unique selling service is also top-notch, and we prioritize building
proposition or the value we bring into the table and to relationships with our clients to ensure their needs and
our customers.” concerns are addressed promptly and effectively.”
21
S
ome people collect shoes or bags. Others collect art Spanish cuisine and steaks Success secrets
or cars. Dick and Mars Balajadia collect businesses. Aside from their aesthetic clinic and spa, the couple Running multiple businesses in different industries
The couple behind DM Group of Companies owns is best known for their restaurants. Stoned Steaks is a on top of raising a family seems like an impossible task.
several businesses in the beauty and wellness, restaurant, high-end, casual dining restaurant that offers a unique way But Dick says, “Mars and I believe in working hard and
hospitality, and real estate sectors. of eating steaks cooked on a hot stone. “We offer different working smart. We also make sure that we have a good
“Before we married in 2010, Dick and I decided to cuts of high-quality beef, a range of dry-aged wagyu and support system in place. We have a team of employees who
franchise a spa,” Mars shares. “That was what started my Angus steaks, A5 premium Japanese beef, and other dishes are dedicated and passionate about our business and clearly
passion for the beauty and wellness industry. It paved the that showcase the restaurant’s commitment to quality and understand the end goal.”
way for me to open my day spa and eventually expand to an innovation,” Dick proudly shares. They are opening a third He also credits their mentors and advisors who provide
aesthetic clinic, now Mecca Aesthetic Clinic and Spa.” branch soon. guidance and counsel when needed. “Having a strong
Soon, they ventured into an events place and catering Meanwhile, Ponce Tapas and Wine brings Spain to support system helps us navigate the challenges of running
local palates with its delicious tapas, paellas, sangria, and a business and allows us to focus on what we do best,”

business, a hotel in Baguio, and a fitness gym. “By 2017,
we opened our first branch of Stoned Steaks, which ignited best-selling cochinillo. The space transforms into a wine and he explains.
our love for food. We then opened Ponce Tapas and Wine, sangria bar with live DJs and acoustic bands on weekends Dick adds that collaborators like UnionBank help their
Karma Lounge, and the second branch of Stoned Steaks and an intimate event space for special occasions. A second businesses grow. “UnionBank has been a valuable partner
by 2019,” Mars says. branch is in the works. in helping us manage our finances more efficiently.
“We love traveling together, and we get a lot of We use UnionBank for our corporate accounts, allowing us
Entrepreneurial family inspiration for our businesses on these trips,” Mars shares. to manage our cash flow and monitor our expenses easily.
Their entrepreneurial streak can be traced to their “We enjoy exploring new destinations and learning about They also offer various digital banking solutions that make
childhood. Dick comes from a family of entrepreneurs in their culture, especially through gastronomic experiences. banking more convenient and accessible.”
several businesses, including a pharmaceutical and hotel Our dream has always been to bring different and unique As a married couple who also happens to be business
management company. Mars’ family, meanwhile, was in the food concepts to the Philippines.” colleagues, Mars says that working together requires mutual
construction business. The couple also shares that they invest in their respect, trust, good communication, defined roles, and a
“We were surrounded by owners and leaders who continuing education, taking executive courses at Kellogg shared vision. “We both know the importance of our family
operated various businesses ranging from food and Northwestern University in Chicago. Dick also took up and prioritize them above all else. We also understand that
beverage to manufacturing and retail. We would constantly the Owner and President Management course at Harvard running a business is not easy, but by working together and
share wins, losses, and everything in between during Sunday University,while Mars finished her aesthetic course with the supporting each other, we can overcome any challenges
family lunches,” Dick recalls. “Witnessing their passion American Academy of Procedural Medicine. that come our way,” she explains.
and dedication to their craft inspired us to pursue our By the looks of it, with their track record, there will be
entrepreneurial dreams as a couple.” Getting into real estate many more businesses and even greater success for this
Dick was only 21 when he opened Halfmoon Bibing As if their hands were not yet full, the DM Group power couple.
crepe, his take on the Indonesian snack called martabak, launched a commercial real estate company called Onward
and then I Have 2 Eggs, an all-day breakfast concept. “I knew Real Estate Incorporated. “We understand that modern
CLIENT FEATURE
IAN PARADIES
Napa Gapa Beverages Corp.
Crafting an on his own. “When I got reassigned back to Manila in 2015,
I wanted to try putting up my own business,” he says.
in early 2019. “We went from 10 and 20 hectoliter brew house
and fermentation capacity respectively, to 50 and 100 hectoliter
capacity,” Ian notes.
Enchanting
Birth of Engkanto He says that most people imagine craft beer as being
The idea of a craft beer business has been brewing in brewed in someone’s backyard or garage, so visitors get
Ian’s mind for years. He felt the time was ripe as he had gained shocked at the size and sophistication of their fully automated,
Beer
enough management experience. And there was a growing state-of-the-art facility. Engkanto definitely stands out from
consumer base of young and upwardly mobile Filipinos open to other microbreweries just on this fact alone. Ian explains that he
trying new beers. “It was a combination of seeing an opportunity had always wanted to invest in the best system to ensure quality
Experience
and the fact that I love craft beer and wanted to offer that to and consistency to not “chase customers away and back to
Filipinos,” Ian explains. commercial beers.”
He decided to call his brand Engkanto, which comes
from Philippine folklore about supernatural beings who live in Turning crisis into opportunity
the forests and mountains. Ian says Filipinos, especially those The company’s growth trajectory was placed on pause
Engkanto Brewery creates world-class craft beers 23
in Central Visayas, where he’s from, are superstitious and when the pandemic hit. The business had to shift to direct sales
Filipinos can be proud of fascinated with the mystical. as its main corporate clients, like hotels, bars, and restaurants,
Ian also wanted to infuse Philippine flavors into Engkanto to closed. The good thing is that it had already developed its
make it distinctly Filipino. He laments that while people around e-commerce website before the pandemic. “From a timing
F
ilipinos love beer. We drink 2.1 billion liters of beer every the world hold us in high regard, we often don’t hold ourselves standpoint, we were lucky,” Ian notes.
year, an average of 114 beers per person. Beer is the most the same way. “We always see things as being premium if they’re Technology helped the company survive the worst of
widely consumed alcoholic beverage in the Philippines, imported, compared to locally produced goods, and it always the pandemic. Ian also appreciates the role of digital banking
accounting for 72% of total alcoholic consumption. Practically drove me nuts because that’s not the case. We could do things in helping his team run the business with its partnership with
most of it is local, mass-produced commercial beer. But there is just as well as anybody else can,” he says. UnionBank. He says, “From a company standpoint, UnionBank
more to beer than what we have been accustomed to. “I wanted to show the market that we could create great has been by far the easiest to work with when it comes to
“Beer isn’t just lagers. It’s ales, it’s porters, it’s stouts. beers just as good as any other country could,” he adds. “So that managing our accounts. I don’t think any bank in the Philippines
You add tons of flavor from the hops, tons of flavor from drove the passion and idea behind setting up the business.” has the capabilities that UnionBank currently has to manage the
Engkanto was launched in 2017 with a small Makati facility,

the malt, depending on what beer you drink and what style business financially.”
you’re drinking. There’s a difference in color, haze, and alcohol producing about 10 barrels per brew and selling kegs in draft “Right now, we do everything online,” Ian explains.
content,” says Ian Paradies, founder and president of Napa Gapa format to hotels, restaurants, and bars. “We never have to step foot in a branch anymore.
Beverages Corp. Every transaction–government payments, transfers to suppliers,
Ian belongs to a new generation of craft beer makers out to Making a mark receipt of payments from customers, and even payroll – is done
elevate the taste of Filipino beer drinkers. The craft beer market Engkanto was a hit, appealing to Filipinos with its unique via UnionBank’s online banking platform. It’s made our lives
in the Philippines is still in its infancy. But it is growing fast, beer flavors and eye-catching packaging. It has since sold beer a lot easier.”
with some 50 microbreweries across the country. Engkanto, in bottle format to groceries and convenience stores. Ian says the pandemic allowed the company to rebrand,
Napa Gapa’s craft beer, is one of the leading brands. Its flagship beer, Engkanto Lager, is a light and refreshing change its logo and packaging, discontinue some core beers,
“Younger Filipinos are much more inclined to try new beer that has won multiple awards. Other popular flavors include and relaunch new ones. He shares, “It’s probably the best thing
things. And they’re looking for elevated experiences, you could the High Hive Honey Ale, Mango Nation Hazy IPA, Green Lava we have done. We’re a super bright country and bright people,
tell that the market is moving in that direction,” Ian explains. Double IPA, and Paint Me Purple Ube Lager. so we wanted something more representative of the Philippines.”
“We’re heavily focused on incorporating local ingredients
Mystical experience into our beer,” Ian explains. “Three of those beers incorporate Bright future
Ian lives and breathes beer. Growing up in Cebu, his local products that we’re locally and globally known for.” Things have been looking up again for Engkanto. Its 2022
experience with beer was no different from most Filipinos. The brewery uses fresh mango puree from Guimaras, honey from sales figures have already surpassed its pre-pandemic revenues.
“I thought commercial beers were what beer was,” he shares. small independent beer farms in Bukidnon and Baguio, and fresh Its on-trade accounts have come back as the economy has
Only when he moved to the U.S. for college did he and his ube (purple yam) puree. opened up.
cousins get exposed to different beers. “When we started to try Engkanto’s beers were not just well-received locally; they have The entire craft beer industry is back on its feet.
those new beers, we realized, holy smokes, this beer is so much also won internationally at the World Beer Awards. “Filipinos are The market is growing, and people are slowly shifting to craft
more than what we thought it was,” he says. proud to see that you have local companies putting up premium beer as their main choice of beer. “You have some bars and craft
His love for craft beer only grew from there, visiting craft brands and creating premium products, which is something that’s breweries with their tasting rooms. And you see die-hard groups
breweries during his travels to the U.S. and Europe. Ian started a fairly new phenomenon, particularly in this space of alcoholic of customers every day there drinking only craft beer. It’s nice
as a management trainee for global port operator ICTSI in 2007, beverages,” Ian points out. to see that transition where people move permanently to your
working his way up to terminal manager at the company’s The brewery grew rapidly, doubling its volumes every year product versus just socially or only on special occasions.”
Jakarta facility. While he enjoyed working with his cousins and for the first four years. Soon, the company outgrew its Makati It’s a magical moment for craft beer in the Philippines.
uncles in the family business, Ian had been itching to venture out system and opened a much larger facility in Carmona, Cavite, And Engkanto is on its way to making it last.
CLIENT FEATURE
ER ROLLAN
Growsari
Big Dreams
When GrowSari started in 2016, FMCG companies agreed ER is also thankful how UnionBank has integrated
that there was an opportunity, but they were skeptical because with GrowSari to allow sari-sari store owners to accept
executing and bringing it to scale was challenging. “We didn’t non-cash payments with QR codes, credited in real-time to
for Small Stores

have any credibility as a startup. Getting companies onboard their GrowCoins wallet. UnionBank has provided an application
took a number of years,” he says. Even sari-sari store owners programming interface (API) that connects UnionBank accounts
had doubts initially, hesitant to use the GrowSari app and with GrowSari’s system. He says, “UnionBank has invested in
change their buying routines. technology that allows our sari-sari store owners to do wallet
Undeterred, ER started a pilot in Antipolo City, eventually transactions that pass through UnionBank, enabling them to be
GrowSari is transforming sari-sari stores into onboarding a thousand stores in three cities. GrowSari had to part of the QR Ph revolution of the Bangko Sentral ng Pilipinas.”
digitally-enabled, full-service community hubs buy products themselves, subsidizing prices to entice store “Being able to integrate with UnionBank, so our customers
owners. “We were repacking orders from the backrooms of can move money into that closed-loop wallet from a UnionBank
supermarkets stores because we couldn’t afford to pay rent,” account, is the right innovation in this space because if we are
he shares. not going to create a solution to drive financial inclusion at that
T
level, then we will see very sparse results. We appreciate that
here are over a million sari-sari stores across the
Philippines. And ER Rollan’s audacious goal is to bring
Turning point UnionBank is serious and has been committed to going with us 25
In 2018, the Gokongwei group invested in GrowSari, which on this journey,” ER adds.
them into the digital age. The co-founder and CEO
gave the company access to its supply chain infrastructure and
of digital B2B platform GrowSari is doing what no one has
suppliers. Eventually, it won over more investors, including KKR, Financing growth
successfully done before. GrowSari enables sari-sari storeowners
Wavemaker Partners, IFC, Saison Capital, Tencent, ICCP, Eden, Another pain point for micro-entrepreneurs is access to
to order anytime over 800 products directly from top FMCG
and Pavilion Capital. financing. Without proper documents, applying for loans to grow
manufacturers, mostly at distributor prices, from its app,
The startup grew rapidly but expanded exponentially when their business is difficult. GrowSari has addressed this problem
delivered for free.
the pandemic hit in 2020. “We transitioned all our stores from by providing financing to shop owners with E-Lista, its Buy Now
Most of these mini stores are in small residential
being dependent on our field agents to fully adopting our app. Pay Later program.
neighborhoods, out of reach of distributors. Shop owners
And that allowed us to scale faster.” ER explains that they use alternative credit scoring
typically close their stores and take a tricycle to the nearest
Today, GrowSari runs over 20 micro-fulfilment centers all based on transaction data, minimizing their lending risks.
wholesaler or supermarket to buy inventory at higher prices.
around the country, where it repacks orders from shop owners This has made an enormous impact on store owners.
“At that level, products have already passed several hands
dubbed Super Tinderas. It has also expanded its network of He shares, “We’ve seen that their order basket sizes have

before it gets there, so it’s time-wasting and costs them money,”
sari-sari stores to over 200,000 stores across the Philippines, grown significantly, and they can stock their stores more.
ER explains.
giving them direct access to P&G, Unilever, URC, Nestle, The throughput is also higher because of that.”
Mondelez, Monde Nissin, Alaska, Coca-Cola, and others.
Underserved stores
Major impact
Not making things easy for these micro-entrepreneurs is a
Super app Thanks to the right team, technology, and timing, GrowSari
huge disservice to sari-sari store owners, considering nine in ten
GrowSari has become a B2B super app for sari-sari stores. has cracked the code. FMCG companies can use the platform’s
Filipinos depend on them for necessities. They also accounted
It added services, enabling sari-sari store owners to offer bills analytics to extract insights and identify growth opportunities
for 41% of FMCG purchases in 2022, more than the share of
payment, prepaid load, cash-in, and gaming and subscription “in theory, all the way to the barangay level.”
hypermarkets and supermarkets. The sachet economy is not
pins to their customers. More than 200 service providers, The most significant impact, of course, is on the sari-sari
going anywhere.
including GCash, Globe, Home Credit, Manila Water, Meralco, store owners. ER notes that it’s not just about earning extra
“It’s the biggest retail channel, and yet it’s the one that is
PLDT, Sky Cable, Smart, and others, are available in the app. income. It’s also about these parents wanting to spend more
least served and understood, making it very hard to manage.
These services are another revenue source for store owners. time with their families, which a sari-sari store allows them to do.
So that inspired us to do something in the space,” ER says.
ER says, “We’re able to bring more businesses to them. “The problem is that there always seems to be a cap.
On one hand, sari-store owners can’t buy directly from
And they’re becoming more relevant to their community.” They can earn only at a certain point,” ER says. “Hopefully,
companies because they’re so small. Meanwhile, FMCG
He adds that their vision is that Filipinos don’t have to go to what GrowSari is doing is to increase their potential.”
manufacturers don’t have an efficient way to reach and
their town center if they can do virtually everything within GrowSari has already achieved a lot, but ER notes, “We still
support them.
walking distance of their neighborhood store. have a long way to go. We’re certainly trying our best to add
The company also partnered with Lazada and Shopee to value to all our partners and customers.” The goal is to scale
Start of something big
allow sari-sari stores to serve as online shopping ordering hubs further and reach hundreds of thousands more sari-sari stores.
It’s no coincidence that ER used to work at FMCG giants
in their communities. GrowSari even has its digital currency and With its proven business model and rapid expansion, there are
Unilever and P&G. His job on consumer and market insights gave
closed-loop e-wallet called GrowCoins. So, aside from getting no doubts it can.
him and his co-founders the inspiration to take on the massive
access to better prices, owners can earn and use to get
challenge of fixing these supply chain inefficiencies in the
cash back on their orders, saving them more money.
fragmented retail space.
CLIENT FEATURE
RENE “RJ” ALETA LEDESMA, JR.

Mercato Centrale
Taste Makers,
If there’s one central thread that connects almost He also appreciates how UnionBank’s digital banking
everything he does, it’s entrepreneurship. As a serial platform helped his businesses and Mercato’s food
entrepreneur, RJ also runs a market entry consultancy entrepreneurs. Aside from being able to do online fund
Brand Builders
firm called EnterPH, targeted at foreign companies and transfers, mobile check deposits, and bills payments,
franchise marketplace EasyFranchise aimed at overseas vendors will also soon be able to accept QR payments
Filipino workers. He is an Agora Awardee for Excellence in from customers.
Entrepreneurship, a GoNegosyo mentor, and a winner of RJ notes, “Digitization helped a lot, especially when it
Mercato Centrale is not just the country’s most popular the Asia CEO Awards for SME Company of the Year. came to things like payroll. And then, I work with a network
open-air food market but also the launch pad for many RJ credits a strong support system that allows him of diverse vendors where they have to make payments as
successful food entrepreneurs to do what he does best. He says, “I don’t run all those well, right? Payments were made easier through UnionBank.
businesses. For Mercato, we’ve built a solid management It helped solve many pain points for entrepreneurs during
team already.” His wife, Vanessa, plays a critical operational the pandemic.”
M
ercato Centrale, launched in 2011 with much fanfare, role at Mercato. “I’m very lucky to be working with my wife,
continues creating buzz and drawing crowds. who is very good with the details, the day-to-day stuff.” More innovations ahead 27
Inspired by the food halls of Europe and hawker “I take more of a strategic role and a business With the economy returning to normal, Mercato
markets of Southeast Asia, the open-air food market development role,” RJ explains. “My expertise is in seeing the Centrale is stronger than ever. “Right now, we have five
concept was a pivotal moment for the burgeoning foodie big picture, where to take the business, and what the trends to six locations and keep launching new ones. It’s time for
culture in the Philippines. are. And I’m a good connector. I connect the business with revenge spending,” RJ says.
“People enjoy the novelty. When they come over, various possible players in the ecosystem.” However, he notes that competition has become fiercer
they can find something that they can only find there with newer open-air food markets commoditizing things:
and only for the weekend,” explains Mercato co-founder Entrepreneurial mindset “Everybody wants to be the next Mercato. So, the question
RJ Ledesma. He adds that the food market offers variety RJ’s resourcefulness and strategic thinking were now is, how do we differentiate ourselves?”
and value for money. Most of all, “it’s the whole experience tested particularly during the pandemic when lockdowns RJ points out, “The core of things is incubation and
that we create, that is key.” and restrictions brought restaurants and food markets like innovation. For us, the heart of it was our realization that
More than just a food destination, Mercato Centrale Mercato Centrale to a halt. Mercato had been the birthplace of many great food brands.

is also a business incubator for food entrepreneurs. “I had to take my own mentorship to heart, that an Our job right now is to replicate more of those, by finding
They’re not just vendors paying rent; they’re start-ups entrepreneur has an entrepreneurial mindset. He sees the best possible vendors.”
that benefit from Mercato’s training, mentorship, and the world through a lens of opportunity,” RJ points out. Mercato is moving away from a market-switching
connections. It’s a perfect avenue for them to test new food He explains that without that, the pandemic would have strategy, which draws vendors from competitors to a
concepts. Mercato’s prime location, foot traffic, and brand been scary: “My job as an entrepreneur is not to say whether market-driving approach, creating and training newcomers.
name offer exposure to homegrown labels. a situation is good or bad. My job is to find opportunities in RJ is doubling down on mentorship with Mercato Academy,
Many of these food merchants have launched popular good or bad situations.” where future food entrepreneurs can be coached in financial
restaurants, including Thai Mango, Manang’s Chicken, The company quickly iterated and innovated to develop housekeeping, operations, sales, innovation, and marketing.
Mamalou’s, Shawarma Bros, Brasas, Bawai’s, Merry Moo, different models. RJ shares that they tried online delivery “If we equip them with these skills set before they join us,
Mio Gelati, Sunrise Buckets, Tokyo Tempura, and Gino’s models, aggregating Mercato’s vendors into one platform. they will have a better chance of making their business
Pizzeria. “They got their entrepreneurial feet wet in Mercato,” They attempted doing limited versions of Mercato in free survive and grow,” he says.
RJ shares proudly. areas and opening morning markets for essential goods Mercato is partnering with UnionBank’s GlobalLinker,
– all, he admits, with limited success. “But the thing is, a social platform for entrepreneurs, in supporting MSMEs.
A passion for entrepreneurship we had to keep on moving and pivoting forward and make “We’re very thankful for pioneers like UnionBank, which is
RJ himself is a popular name, widely known in small failures along the way because if we didn’t learn how blazing the way because it listens to SME clients like me
both business and media circles. He’s a pop culture icon, to make those small failures, then we wouldn’t know how to so that I can serve my customers better,” RJ says.
book author, motivational speaker, professional host, be able to find the correct formula to operate in the “We need more banks like UnionBank to support SMEs’
TV personality, editor-in-chief of The Business Manual, new normal,” he explains. growth. We look forward to continue working with
and honorary consul of Monaco to the Philippines. This culture of experimentation and innovation is UnionBank to help build our small food vendors to become
“I was trained at the very start to be a multi-tasker, something Mercato Centrale shares with UnionBank. sustainable, scalable, and innovative, enabling us to grow
which is a great combination of my mom, who was involved RJ says, “Why I like UnionBank is, aside from having a lot the country, one SME at a time.”
in a lot of socio-civic activities, and my dad, who was an of great tools for entrepreneurs, it’s also because they have
entrepreneur. I’m just used to having so many different their sandbox over there, which is UBX.”
things on my plate at the same time,” RJ says, explaining
how he’s able to juggle all his different roles.
BOARD OF DIRECTORS
28
ERRAMON
I. ABOITIZ EDWIN
CHAIRMAN
R. BAUTISTA
PRESIDENT & CEO
29

DR. JUSTO
A. ORTIZ SABIN
VICE CHAIRMAN
M. ABOITIZ
DIRECTOR
BOARD OF DIRECTORS
30
MANUEL
R. LOZANO ANA MARIA
DIRECTOR
A. DELGADO
DIRECTOR
31

NINA PERPETUA
D. AGUAS SAMEL
DIRECTOR
A. ABOITIZ
DIRECTOR
BOARD OF DIRECTORS
32
ROLANDO
L. MACASAET ROBERT JOSEPH
DIRECTOR
M. DE CLARO
DIRECTOR
33

ROBERTO
G. MANABAT MANUEL
LEAD INDEPENDENT DIRECTOR
D. ESCUETA
INDEPENDENT DIRECTOR
BOARD OF DIRECTORS
34
JOSIAH
L. GO ATTY. FRANCISCO
ED LIM
35
36
GAME
CHANGER U
nionBank’s takeover of the consumer banking
business of Citi in the Philippines was a
game-changing acquisition. It has taken
UnionBank to a whole new level, bringing it
closer to its mission to be a major player in retail banking.
UnionBank completed its $1.3 billion takeover of Citi’s retail

banking business in August 2022. It edged out rivals as Citi
selected UnionBank following an extensive and competitive
auction process. This was Citi’s second divestiture among
the 14 consumer markets in Asia, Europe, Middle East,
and Mexico as part of its strategy refresh.
“The Citi takeover brought in P98 billion in total assets,
including P69 billion in net consumer loans and
P30 billion in cash, plus P67 billion in deposits.”
37
Higher Rank UnionBank is now a stronger contender across three There is a perfect strategic and cultural fit between both
The Citi takeover brought in P98 billion in total assets, consumer businesses: credit cards, personal loans, banks. Citi is known for being at the forefront of innovation
including P69 billion in net consumer loans and and mortgages. Its consumer loans account for over half in the financial services industry while UnionBank has
P30 billion in cash, plus P67 billion in deposits. of its total loan book, triple the industry average. leveraged its expertise to become a pioneer and leader
And it elevated UnionBank’s credit card ranking to in digital banking and other cutting-edge financial

second in billings. Bigger Base technologies.
One of the most significant benefits of acquiring Citi’s
But it is not just the staggering numbers that matter. retail banking business was the substantial increase in Shareholder Support
UnionBank did more than buy volume and variety for UnionBank’s retail customer base. The takeover added The acquisition has likewise earned the support of
its consumer segment. It acquired a valuable business. close to a million new customers to the UnionBank network. UnionBank’s shareholders. The Bank raised P40 billion
Citibank Philippines had a great, profitable, and well-run in May 2022 through a stock rights offering (SRO) from
retail portfolio. It was known for offering various financial Citi’s customers showed their trust and support for existing shareholders to partially fund the acquisition of
products and services, including credit cards, personal UnionBank with zero attrition among cardholders and Citi Philippines. And it successfully raised an additional
loans, deposits, investments, and insurance. And it had almost all consenting to keep their deposit accounts. P12 billion from another SRO last February 2023.
the third largest credit card franchise in terms of billings Now, more people can experience the new way of banking
and is a pre-eminent wealth management provider with UnionBank’s award-winning and innovative products The Bank’s shareholders, led by its principal shareholders,
in the Philippines. and services. Aboitiz Equity Ventures, Social Security System, and Insular
Life, all participated in the SRO, the latest round being
This acquisition has catapulted UnionBank’s credit card Stronger Leadership heavily oversubscribed. This is a testament to UnionBank
and wealth management businesses. By integrating these On top of new assets, products, and customers, the shareholders’ trust in the Citi acquisition.
products and services into its offerings, UnionBank can better acquisition brings in over 1,500 Citi employees from their
meet the needs of an increasingly diverse customer base. consumer bank and support staff. Most notable is the After all, the deal has made UnionBank one of the biggest
100% retention of Citi’s senior leadership team running players in retail banking in the country. And as UnionBank
the consumer business. This further deepens UnionBank’s leverages the benefits of acquiring Citi’s retail banking
leadership bench as it expands its retail banking offerings. business, UnionBank is well-positioned to achieve its goal
of becoming a great retail bank.
38
A
lphabet has its Googleplex. Apple has its Apple
BUILDING THE
Park. Meta has its MPK 20. MIT has its Media Lab.
From Xerox PARC and AT&T Labs to Unilever
Foundry and Coca-Cola Kolab, there has been a
long history of corporate innovation and R&D headquarters
since Thomas Edison founded GE in 1890. It is in this spirit
and inspiration that UnionBank built its Innovation Campus.
FUTURE OF BANKING Inaugurated in September 2022, the UnionBank Innovation

Campus (UBIC) is an 8,000-square-meter, five-story,
state-of-the-art building. It is the first of three buildings in a
master-planned complex in a sprawling one-hectare area at
The UnionBank Innovation Campus is a hotbed of creative ideas the Sand Hub technology park in San Pedro City, Laguna.
and a training ground for talent As with many UnionBank initiatives in the country, it is the
first in the banking industry.
A Culture of Innovation and technologies, it has built a track record of creating Through courses from its UBP Xcellerator program and the
The campus has been the physical embodiment of award-winning, ground-breaking, and financially Asian Institute of Digital Transformation (AIDT), UnionBank
UnionBank’s creative and innovative culture for the past profitable digital platforms, apps, payment gateways, trains and equips its employees and other individuals and
two decades, which accelerated in the last several years and technology solutions. organizations. This helps create an ecosystem of partners
as it embarked on its digital transformation. UnionBank has and collaborators, setting the stage for advancing the
since fashioned itself as a technology firm with a These fintech products and services were in full display country’s digital technologies.
banking license. during the inauguration of the campus, where UnionBank
also held its first Innovation Festival. Around 3,000 visitors The AIDT, a partnership between UnionBank and Global
In many ways, it is like the entire bank is a fintech attended the three-day festival, including dignitaries from Learning Solutions Singapore, runs an exclusively designed
start-up. No other financial institution in the Philippines the public and private sectors, the media, clients, Executive Master Class in Digital Transformation. It equips
thinks and acts like it. It embraced Agile, adopted and employees. The Bank showcased all the various use leaders with the proper insights, tools, and techniques for
39
DevSecOps, runs hackathons, works in sprints, files patents, cases it created using new technologies and solutions their organizations to thrive in today’s digital world.
incubates start-ups, and launches products and services from its global technology partners.
built on blockchain, data science, and artificial The campus launch also ushered in the first of many more
intelligence (AI). Collab Space partnership hackathons with the government. Last year,
The UBIC builds on UnionBank’s technology success UnionBank SME Segment, DTI, and UBP Xcellerator hosted
UnionBankhas been exploring cutting-edge technologies, as it houses UnionBank’s various centers of excellence, a hackathon to solve the challenges of the country’s
including cryptocurrencies, non-fungible tokens (NFTs), including its institutes for blockchain, data science, and AI. fast-growing e-commerce industry.
robotic process automation (RPA), the Internet of Things Its new digital-only bank subsidiary, UnionBank Digital,
(IoT), and the metaverse. And it is pushing the boundaries has its headquarters also inside the campus. Open Environment

of open finance, embedded finance, and decentralized Like most start-up offices, the Innovation Campus exudes
finance (DeFi). One of the main goals of the Innovation Campus is to a modern, cool, and hi-tech vibe. It features various
promote collaboration and innovation. It plays a key role in workspaces, from private offices to open counters to
R&D Lab UnionBank’s Tech Up Pilipinas advocacy to advance digital flexible meeting rooms. The campus has a gym, lounge,
The most forward-looking global financial institutions are technology not just in the banking industry but in all other and coffee shop for employees to enjoy. It also includes
acting more and more like tech companies by building sectors, including the government. UnionBank’s cybersecurity center, which serves as
R&D labs. For example, Visa has Innovation Centers, redundancy backup and business continuity for its head
MasterCard has its Foundry, JPMorgan Chase has its For example, UnionBank has a partnership with the office in Ortigas Center.
Financial Solutions Lab, Citi has its D10X venture capital Department of Trade and Industry (DTI), with the campus
arm, and Deutsche Bank has its Innovation Network. housing DTI’s National Center for Artificial Intelligence As a center for research, collaboration, and training,
Research (CAIR) and its Industry 4.0 Pilot Factory (I4PF). the UBIC provides a platform for innovation to help the
UnionBank’s Innovation Campus is no different. It has a Bank develop and bring new financial technologies
dedicated innovation lab equipped with the latest tools. Training Camp to market. The campus is an integral part of UnionBank’s
The lab serves as a research hub and collaborative space Aside from being a research hub and collaboration space, strategy to stay ahead of the curve in the rapidly evolving
for UnionBankers employees and partners to experiment the UBIC also serves as a training center for the next world of banking and push forward its ambition to build
with new technologies in a controlled environment. generation of business leaders, data scientists, coders, the future of finance.
AI and blockchain developers, design thinkers,
As with any R&D lab, it is all about experimentation and and cybersecurity experts.
iteration, testing and learning what works and what
doesn’t. With UnionBank’s willingness to explore new ideas
40
T
here are over a million business establishments
in the Philippines. And 99.5% of these are micro,
small, and medium-sized enterprises (MSMEs).
And yet, they are often underserved by
financial institutions.
MSMEs have a more difficult time getting loans to help

them expand or even just survive. Most do not have a
finance department to handle banking transactions.

With nine out of ten businesses being micro-enterprises
with fewer than ten employees, the entrepreneur is usually
the CEO and CFO rolled into one. It is not unusual for a
business owner to line up in a bank branch to deposit
cash, pay bills, and transfer funds. How can they do online
banking if digital banking apps are often designed for retail
clients and large corporations? Well, now they can.
BIG LEAP FOR Breakthrough Solution

UnionBank has made it a priority to help MSMEs overcome
these challenges by providing them with digital solutions
that make it easier for them to grow and succeed. Its MSME
Business Banking app is one such breakthrough.
SMALL BUSINESSES
The Bank’s MSME team introduced this fully-featured
mobile application with MSME business owners in mind.
UnionBank designed the entire end-to-end experience for
entrepreneurs, from application and onboarding to usage
and support. It is not an off-the-shelf solution but was built
from the ground up. It is not just the app itself that was
UnionBank’s MSME Business Banking app changed customized specifically to address the needs of MSMEs.
the way business owners bank The results have been astounding. Continuous enhancements
in the MSME Business Banking app almost doubled
They can enroll multiple UnionBank business accounts,
view their balances and transaction history, pay their
bills with the most extensive list of government and
utility billers, transfer funds to local and international banks,
do scheduled and batch transfers, open and manage
payroll accounts for their employees, and set up simple
or complex business approvals.
MSMEs that require digital check-writing just need to make

an initial deposit of Php100,000 to avail of this feature.
Cash is King
Cash is the lifeblood of any business, but even more so
41
for MSMEs. UnionBank’s MSME Business Banking app
helps business owners access funds faster. For example,
the mobile check deposit function allows them to deposit
UnionBank’s SME customer base from 60,000 to around Hassle-Free DAO and Onboarding a check without going to a branch. They only need to
100,000 as of December 2022. And usage is through the UnionBank understood the pain points and challenges take a photo of the check to have the funds credited
roof. MSMEs have done 16 million monthly fund transfers, that MSMEs go through. That is why it ensured that the almost immediately.
700,000 bill payments, and almost 60,000 mobile check application and onboarding process was seamless and
deposits using the app in 2022. stress-free. UnionBank is the first and only bank in the country UnionBank’s UPAY, its fully integrated payment acceptance
to introduce digital account opening (DAO) for MSMEs. hub, is already built into the MSME Business Banking app.
Meeting the Needs of MSMEs UPAY provides MSMEs with a fast and secure way to
Getting MSMEs to move into digital banking can be This process is digital from end to end. Business owners

receive customer payments, making managing their cash
challenging. Some are set in their traditional ways of going do not need to visit a branch to open a business account. flow and growing their businesses easier.
to the branch to do banking transactions. Others feel it might They don’t have to submit hard copies of their documents
be too technical and are intimidated by the drastic change. to the branch. And they don’t have to wait weeks to get Merchants can generate payment links and QR codes
confirmation that their account has been enrolled for specific to a transaction. This enables MSMEs with online
And they have good reason to feel this way. Most banking digital banking. Everything is done online, from opening an or brick-and-mortar stores to request and collect customer
apps in the market are complex and cumbersome to set up account and uploading forms and documents to enrolling payments through multiple channels quickly. These include
and use. And most banks require so much paperwork to be accounts and verifying signatories for digital banking. bank-to-bank fund transfers, digital wallets like GCash
physically submitted just to open a business account and And it just takes hours, not weeks, to get started. and GrabPay, over-the-counter outlets (Palawan Express,
enroll it for digital banking access. It is simply a stressful, ECPay Partner Outlets, Cebuana Lhuillier), and debit and
complicated, and time-wasting experience. Existing UnionBank business account owners can likewise credit cards (Visa and MasterCard).
enroll their accounts and use the app with the same ease
Because of this, UnionBank launched the Power to and convenience. Other banking apps are complicated and MSMEs who need extra funds to expand their operations
Grow campaign #WalangMaliitNaBusiness in 2022 to require bank personnel to explain and train business owners can also apply for a business loan through the app.
create awareness through social media, events, and how to use them. UnionBank’s MSME Business Banking app The online loan application may be approved within a week,
other programs that all businesses deserve to get equal is so easy and intuitive that it only takes watching a short and funds are credited to the account upon approval.
opportunity, big or small, and promote inclusivity that no video tutorial to get started. The digital loan application process is designed to help
MSME gets left behind. This campaign’s objective was to MSMEs access finance quickly and easily, so they can
empower and inspire MSMEs to keep going and that they An Everything-They-Need App get on with growing their companies.
could surpass any challenge. UnionBank’s MSME Business Banking app is full of features
usually available only to large corporations that can afford Whether doing banking transactions, requesting and
The drive featured real MSMEs with stories to tell and how a substantial maintaining balance. With UnionBank, shop collecting payments, or applying for loans, UnionBank is
UnionBank has helped them in growing their businesses owners can open a business starter account with an initial playing a critical role in helping MSMEs succeed in the
further. Through stories that went beyond banking, deposit and maintaining balance of only Php5,000. And yet, digital age. With the MSME Business Banking app and
UnionBank’s MSME products were highlighted to show they can do practically every banking transaction on the app. related banking services, UnionBank provides MSMEs with
how they touched people’s lives. the tools and services they need to thrive in the digital age.
42
W
e live in an increasingly digital,
mobile-first world. Most Filipinos connect
BANKING EVERY FILIPINO online through their mobile phones.

They watch streaming videos, play digital
games, engage on social media, and chat online. And since
the pandemic, more and more consumers buy, pay, and
bank online.
EVERYWHERE The timing of UnionDigital Bank’s launch could not be

more perfect. UnionBank’s digital-only bank subsidiary is
only one of six digital banks approved to operate by the
Bangko Sentral ng Pilipinas (BSP). The directive by the
BSP was to reach Filipinos who do not have access to
The launch of UnionDigital Bank brings the vision to serve formal financial services. These include those who live in
remote areas, do not have access to banking services, or
the unbanked closer than ever before do not have the requirements to get a loan or even just
open a savings account.
Rapid Growth Not only is UnionDigital backed by the resources of the For those who want to start a small business or tap quick
UnionDigital has a big, audacious goal: to increase seventh largest bank in the country, but it also has access cash for emergencies, UnionDigital will offer hassle-free
the country’s adult banked population to 70% and to a massive amount of data, including customer data and digital loans at lower rates than informal lenders. Once loan
increase digital payments to half of all payments made transaction data, which is not available to a fintech start-up. products are launched via the app, customers can inquire
in the Philippines. As a fully-digital bank from day one, and apply for cash loans through the app. There will be
UnionDigital was built with a singular mission to make Instead of relying only on payments data, UnionDigital no need to go to a branch, submit numerous documents,
financial services more accessible to all underbanked and can look into historical data and financial behavior to and wait for several days. By combining traditional and
underserved Filipinos all over the country. determine a borrower’s capacity and willingness to pay. alternative data to underwrite loans, it will process and
Combined with alternative underwriting models, this approve loans faster. For qualified borrowers, this means
Launched officially last July 2022, UnionDigital is off to access to more diverse data sources helps the digital bank they can get cash in minutes, not days. We envision
a promising start. It already acquired 1.73 million customers with risk management, customer acquisition, and even UnionDigital’s responsible lending practices to elevate lives
43
and recorded Php4.8 billion in loans and Php9 billion in product personalization, such as customizing interest rates. by giving access to credit to many first-time borrowers.
deposits just five months after its commercial launch.
This is already an astounding achievement, something As a subsidiary of UnionBank, UnionDigital is able to And as UnionDigital takes after its parent company
that would take new players years and tens of millions bridge the gap between innovation and regulation to make UnionBank,the country’s digital banking leader, it already
of marketing pesos to reach. digital banking and virtual assets safe and accessible to has the experience and capabilities to protect its clients.
Filipinos. Customers are secure and can be confident that their
Competitive Advantages money is safe through multi-factor and risk-based
UnionDigital has clearcut advantages. It is the only digital Value Proposition authentication, encryptions, threat-aware apps, text
bank by a publicly listed bank, which also happens to be For unbanked consumers, UnionDigital offers ease and message or e-mail alerts, and fraud and anti-financial

the country’s leading proponent of digital banking. It has convenience. They do not need to visit a physical branch crime monitoring.
the DNA of UnionBank and has inherited its corporate to open an account. Everything can be done from the
culture, best practices, and relentless experimentation UnionDigital Bank app. Setting the Stage
in new technologies. Ultimately, UnionDigital is not just a cool app. It’s not about
They can open an online saving account in less than the most number of downloads and signups. It’s not about
Moreover, UnionBank has honed its strategy of targeting 10 minutes anytime, anywhere, with a valid ID and selfie getting millions of users who don’t generate revenue.
anchor communities with built-in ecosystems, such as photo. There are no fees and no paperwork. With zero It’s about building a profitable bank with unprecedented
FMCGs and government corporations. A single anchor initial deposit and zero maintaining balance, there are also scale. By focusing on its balance sheet and growing its
FMCG client, for instance, opens it up to hundreds of zero hurdles for new customers. Plus, they can earn a high loan book, it will be able to grow a sustainable business.
MSME suppliers. Partnering with government institutions interest rate from their deposits.
such as the Social Security System (SSS) gives it access UnionDigital’s mission to drive financial inclusion has
to millions of members. UnionDigital account holders can access their funds and already begun with providing access to credit to
check their balances 24/7. They can make and receive underserved communities from UnionBank’s ecosystem
UnionDigital leveraged its parent company’s existing payments and transfers from the comfort of their home partners. And this already serves as a solid foundation
ecosystem partnerships, allowing it to achieve or wherever they are. to build on greater success.
double-digital growth in digital deposit and lending
products to mass market communities. This sets the stage
for cross-selling future products, from digital assets such
as cryptocurrencies to embedded services
such as insurance.
44
U
nionBank has always been at the forefront of new technologies. In recent years,
it has cranked up its innovation machine. The Bank is relentlessly pursuing emerging
technologies to provide its customers with the best financial services. Six years ago,
its leaders already saw the writing on the wall. Consumer behavior was shifting, fintech
startups were filling gaps in the market, and new technologies were disrupting practically
every industry, including banking.
THE BANK
Since it started its digital transformation, UnionBank has doubled down on digital.
Its early forays into cloud computing, automation, blockchain, artificial intelligence (AI),
and application programming interfaces (APIs) enabled the Bank to lay the groundwork
for the banking infrastructure of the future.
And these are not pie-in-the-sky PowerPoint presentations. UnionBank and UBX have
OF TOMORROW
launched use case after use case for these cutting-edge technologies at every level and
executed large-scale projects.
Going Big on Blockchain

UnionBank is the first bank in the Philippines to explore and leverage blockchain technology,
a digitally distributed, decentralized, and immutable public ledger that allows multiple parties
to record transactions and track assets in a business network. This makes transaction records
and asset ownership transparent and secure.
UnionBank’s pioneering entry into AI, APIs, and blockchain
technology has made it future-proof while making emerging The undisputed pioneer in blockchain technology, UnionBank has launched numerous
breakthrough blockchain-based projects. The most notable ones include Bonds.PH
technologies available to Filipinos today. and supply chain financing (SCF).
Bonds.PH. UnionBank’s award-winning landmark project Bonds. Open application programming interfaces (APIs) are the underlying telesales and by 237% via email. It likewise boosted its average
PH is the ﬁrst mobile app in the Philippines and Asia that uses technology behind open banking and open finance. APIs are monthly conversion rate in auto loans.
blockchain technology to distribute retail treasury bonds (RTBs). connectors that enable financial institutions and third-party
This allows investors to buy and sell risk-free treasury bonds providers to interconnect their systems. And UnionBank is the only By implementing hyper-personalization capabilities using data
conveniently anywhere in the world. There is no need to go to financial institution in the country with the broadest range of APIs science and AI/ML, the Bank was able to offer financial solutions
a bank as they can cash in and out via the app. in multiple use cases. that are relevant and specific to the needs of its clients. And that’s
why response rates to cross-selling financial products doubled.
The Bank issued the country’s first digital bond using distributed API Marketplace. As the first bank in the Philippines to offer As a result, UnionBank was able to find customers in a scalable
ledger technology (DLT) in collaboration with the Philippine banking-as-a-service through its API marketplace, UnionBank manner and drive its revenues.
Depository & Trust Corp (PDTC) and Singapore-based fintech firm has helped more than 100 partners and has facilitated more
Hashstacs (STACS). than 78.7 million transactions amounting to Php597 billion. Net Promoter Score (NPS) Free-Text Analysis Tool. Sifting through
The marketplace has more than 200 API products and 500 API tens of thousands of customer feedback is time-consuming.
UnionBank sold Php11 billion in digital bonds to nearly 900 retail endpoints, expanding its market segment reach beyond fintechs AI technologies such as natural language processing (NLP)
and institutional investors, an 11x oversubscription from its initial to other industries. have helped UnionBank streamline the analysis of more than 45
minimum offer size of Php1 billion. This marked a milestone in 10,000 monthly survey responses and over 35,000 inquiries and
the Philippines and global finance, paving the way for future use For instance, UnionBank has partnered with e-commerce players complaints from customers.
of DLT and blockchain technology toward more automated and such as Shopee and Lazada Philippines to give their customers
operationally efficient local capital markets. direct cash-in services. Account linking for the major e-wallets and The Bank uses the Net Promoter Score (NPS) Free-Text Analysis
e-commerce wallets makes it quicker for end users to top up or Tool to identify user needs and gains through direct feedback
Supply Chain Finance (SCF). UnionBank launched its pioneering deposit to their daily e-wallets on any amount. analysis automatically. NPS is an important consumer metric used
and patented Supply Chain Finance (SCF) platform on the by UnionBank to estimate customer loyalty and satisfaction.
blockchain, the first in financial chain management in the UrGovPH. UBX, the open finance subsidiary of UnionBank,
Philippines. Its strategy revolves around community-based launched UrGovPH, a suite of open finance solutions that will The tool allows the Bank to understand customers’ sentiments
approaches, transparent transactions, and automated financing. allow the national government and local government units (LGUs) through free text in various channels and platforms, such as the
to easily create digital services across identity, taxation, finance, UnionBank Online mobile app, comments on social media, or

The Bank has long taken a strategic approach involving anchor property, and business interactions. surveys answered in branches.
corporate clients and their ecosystem of dealers and suppliers,
many of which are MSMEs with limited access to financing. This open finance toolkit enables the government to digitize public By understanding the needs and feedback from customers in a
Building blockchain technology into the financial supply chain services and verify businesses and individuals without needing scalable and automated manner, the Bank can make more informed
makes it easier and faster for anchor companies to provide paper documents. For instance, LGUs can automate the workflow decisions and prioritize action steps faster. As a result, UnionBank
dealer and receivables financing. for managing all social services, from the local civil registry and raised its NPS above its local competitors. And it has allowed it to
enforcement of ordinances to citizen and business registration provide better service to its customers.
IBM’s Hyperledger Fabric powers the transactions made on the and acceptance of digital payments. This initiative supports the
SCF system, guaranteeing efficiency and security in the supply country’s drive to promote ease of doing business and bring Mules with Fraud Management. UnionBank also uses AI to
chain. Financing is embedded in automated collections and essential services closer to the people. automatically detect unusual or irregular customer transaction
disbursements with digital invoice presentment. Companies can behavior that matches money mule patterns. The AI can detect
collect payments faster through the SCF platform and support Getting Smarter with AI high-risk money mules account upon account opening and
their partners with financing options. UnionBank uses artificial intelligence (AI) and data science in monitors these flagged accounts on a 150-day period. Any unusual
various areas, including sales, customer service, risk management, behavior during the monitoring period found by the AI will cause
An Ace with APIs and fraud detection. AI has enabled the Bank to process and the account to be flagged as a potential money mule and will
UnionBank is an early proponent of open banking and open finance analyze massive amounts of data. Using data science and subject the account to a manual investigation. The solution was
in the Philippines. Open banking is sharing data on accounts and machine learning (ML), a subset of AI, UnionBank has boosted able to automatically identify up to 40% of mules at 5% detection
payments between financial institutions and third-party providers its capabilities to offer hyper-personalization and improve the (of all newly opened accounts).
such as fintechs. For example, UnionBank shares its data, customer experience.
with the consent of its clients, with these providers, allowing From AI and APIs to blockchain, UnionBank has been exploring
them to streamline their account opening process for customers Data Vault. UnionBank has been using a data vault platform that next-generation technologies to serve its next-generation of
and provide personalized offers and services. Open finance is the serves as a central data hub with AI and ML capabilities. By using customers better and stay ahead of the curve in the rapidly
next step, encompassing other financial services like insurance, cross-sell models, it increased total bancassurance bookings by evolving world of banking.
investments, wealth management, and treasury. 138% compared to a non-model approach. It also increased its
average monthly conversion rate in credit cards by 187% through
MANAGEMENT
COMMITTEE
46
ROBERTO F. ABASTILLAS EDWIN R. BAUTISTA FRANCIS B. ALBALATE ATTY. ARLENE JOAN T. AGUSTIN
Commercial Banking President & Chief Executive Officer Controller Private Banking
47

THERESE G. CHAN ANTONIO SEBASTIAN T. CORRO ANA MARIA A. DELGADO ALBERT RAYMOND C. CUADRANTE RAMON G. DUARTE
Wealth and Brokerage Chief Cross-Sell Officer Chief Customer Experience Officer Chief Marketing Officer Transaction Banking
Chief Digital Channels Officer
MANAGEMENT
COMMITTEE
48
ANTONINO AGUSTIN S. FAJARDO MARY JOYCE S. GONZALEZ DR. DAVID ROI HARDOON MANUEL R. LOZANO VISHAL KADIAN
Corporate Banking Retail Banking Chief Data & AI Officer Chief Finance Officer Cards and Personal Loans
49

DENNIS D. OMILA JOHNSON L. SIA MICHAELA SOPHIA E. RUBIO MANOJ VARMA ERWIN WIRIADI
Chief Technology Treasurer, Global Markets Chief Human Resources Officer/ Consumer Banking Chief Risk Officer
& Operations Officer CSR & Sustainability Head
51
T
he year 2022 was never short of momentous for UnionBank University continuously grows its library enabling them to contribute to the organization and attain
UnionBank. The Bank celebrated its 40th year of learning courses that aim to strengthen the core personal career goals.
in business, and in 2022 alone, its people and capabilities of the employees while giving them a chance

organization milestones have surpassed its many to explore and upskill for a possible career shift within the As of 2022, twelve LEADs have graduated from the
achievements over the years. organization and co-create innovations for their immediate program and have been promoted to assistant vice
communities. This platform is complemented by more president and up. There are sixty-seven trainees currently
True to its commitment to maintaining a strong culture and capability-building and leadership initiatives that are undergoing formal training and residency across the Bank.
a highly engaged workforce, UnionBank kept an annual experiential, purposeful, and transformative.
attrition rate of 11% in 2022. The Bank likewise boasts a The success of the program and the evolving needs
high engagement rate of 4.41 which is comparable with the Capability-building is vital in the Bank’s transformation of the Bank for tech talent led to the creation of the
global best business standard. from Agile in 2017 to DevSecOps today. UnionBank aims Technical Lead Program(Tech LEAD), a 12-month
to create a highly collaborative, flexible, and resilient fast-tracked technical development program covering
UnionBank is also proud to be the first Great Place to Work organization that will help future-proof its people and various emerging technologies while gaining business
certified bank in the Philippines for two years in a row. the organization. acumen and leadership foundations through blended
This was made possible through the programs that help learning interventions.
focus on the engagement, retention, and capability The Bank’s robust talent development program provides
building that enables UnionBankers to #OwnTheFuture. interns, future managers, bank executives, and tech leaders We have seeded 35 future tech leaders in UnionBank for
with the skills to prepare them for multiple work futures. data science, information security, customer experience,
Employees Owning the Future through enterprise architecture, solutions delivery, infrastructure
Capability Building and Leadership Development The Leader Executive Accelerated Development Program and service management, and digital delivery through
The Bank recognizes the constant need for learning and or LEAD Management Training Program was launched in the Technical LEAD Program.
development, supporting the philosophy of owning one’s 2017 to provide the LEAD management trainees, or LEADs,
career through capability building. with training and job experiences within six to seven years,
Environment, Social and Governance (ESG)
and Sustainability
2022 was also significant in terms of UnionBank’s
Environment, Social and Governance (ESG),
and Sustainability and Inclusion initiatives. In 2021,
the International Finance Corporation (IFC) invested
USD150M in a seven-year social bond issued by the
UnionBank. The first social bond, which was issued
under the Bank’s new sustainable finance framework,
is its longest-term USD-denominated bond to date.
52
This paved the way for a strengthened commitment to
embed ESG into the UnionBank culture continuously.
The Bank also created an ESG Technical Working Group
that convenes and recommends sustainability programs
and initiatives to senior management and the board.
UnionBank has proactively developed skills and experience

TechLEADs ended their 12-month program with a UnionBank senior leaders Edwin Bautista, Henry Aguda, in sustainable finance and ESG. Learning and development
Corporate Social Responsibility (CSR) initiative called and David Hardoon were among the Global Faculty through training and workshops are accelerated to
‘Pay IT Forward,’ where they developed a tech project Mentors of AIDT’s eight-week online Executive Masterclass empower employees to implement the policies and
that benefited an immediate community. in Digital Transformation. The first three seasons kicked off guidelines issued in line with the IFC social bond.
with UnionBank Chief Human Resources Officer Michelle
UnionBankers can also experiment and learn as they work Rubio as Chief Learning Officer, with the help of volunteers #OnewithU: UBP’s Biggest Onboarding
through the Bank’s centers of excellence and communities from the banking group who acted as Learning Mastery UnionBank officially welcomed over 1,500 new
of practice. This year, UnionBank launched the Cloud Coaches. UnionBankers who joined after acquiring Citibank’s
Center of Excellence, Open Finance and Digital Services consumer banking business in the Philippines.
Center of Excellence, and Metaverse Center of Excellence. This initiative helps drive the Bank’s advocacy to Tech Up August 1, 2022, marked the first official day when
Through these platforms, employees can upskill and lead Pilipinas by empowering organizations and leaders to drive UnionBank and Citi Consumer Business were merged
projects for continuous improvement of our products, meaningful transformation and sustainable development. into one entity in the eyes of our regulators,
services, and processes for customers’ benefit. stakeholders, customers, and employees.
Alongside this effort is the continuous development and
Tech Up Pilipinas: Transforming Businesses, release of programs in emerging technologies through In a welcome event dubbed ‘#OneWithU,’ over 5,000
Companies, Communities, and Government Agencies the UBP Xcellerator Program. Since its launch in 2018, UnionBankers participated in a multi-location celebration
In 2021, UnionBank founded the Asian Institute of Digital Xcellerator has produced over 14,700 educated individuals at UnionBank Plaza, the Bank’s over 300 branches,
Transformation (AIDT) in partnership with Global Learning with diverse expertise in artificial intelligence (AI), robotics, subsidiary offices, and acquired offices and branches
Solutions Singapore. Since then, AIDT has run six seasons data science, data analytics, digital marketing, and more. in Eastwood, Greenhills, Makati, and Cebu. The main event
and trained nearly 200 professionals from the government The program is funded by UnionBank CSR and offers free at UB Square was streamed through a live broadcast
sector, UBP transformation partners, academe members, courses benefiting students, job seekers, and those who on YouTube.
and Aboitiz Equity Ventures. want to learn tech skills.
Months of hard work, communication, and collaboration HR-RELATED AWARDS
led to this smooth transition. The stronger UnionBank
team ensures that its millions of customers are cared for,
assuring them of seamless continuity and upholding the
legacy Citi has built for over 100 years in the Philippines. Green Buildings Employer of the Year - TechLEAD -
for the ARK Branches Banking (Bronze) Leadership Training
Keeping the Employee Engagement High (Sustainability) or Program (Silver)
As the Bank’s business flourishes, and with the Stevie Awards for
50% increase in the total employee population following Europa Awards Great Employers Stevie Awards for
the acquisition, UnionBank continues implementing its July 2022 August 2022 Great Employers
employee engagement programs that would empower
August 2022 53
and reward its people.
Events like the Spooktacular 2022 Halloween Event featured

Employee Best Companies Best Bank for
costume and makeup design and workplace décor contests
Engagement (Bronze) to Work for ESG 2022
to showcase creativity and sustainability. The holiday basket
in Asia 2022
tradition was also revived, and the distribution kicked off in Stevie Awards for Asiamoney
various sites last December 13, 2022. Great Employers HR Asia September 2022
August 2022 September 2022
Alongside the different engagement programs, UnionBank

ensures its leadership team is engaged and motivated.
Thematic team-building programs for leaders were done
to ensure alignment and engagement. The military-themed
teambuilding program, Go for Gold 2025, was held, where Platinum Employer Philippine Great Place to Work
leaders underwent activities that tested their decision- of the Year In-House Team of the Certified 2022-2023
making, leadership, cross-functional collaboration, > 1,000 Employees Year – HR Legal
and execution skills. Over 200 UnionBank leaders (Highest Recognition) Asian Legal
participated in this event, making it the most extensive Asian Legal Business Awards
Philippine HR Awards Business Awards November 2022
team-building activity the Bank has implemented.
November 2022 November 2022
These programs are a testament to UnionBank’s culture

of learning that drives innovations, which are essential to
the Bank’s efforts to transition from BECOMING digital to
BEING digital. And they are a nod to our employer value
proposition of OWN THE FUTURE.
Best Retail Bank in the Digital Bank of the Year
Philippines (4-time) (6-time)
The Asian Banker Global The Asset Triple A

Excellence in Retail Financial Digital Awards 2023
Services Awards 2023
54 SME Bank of the Best Domestic Private Best Digital Bank

Year 2021 (Gold) Bank Philippines 2022 Philippines 2022
Efma SME Banking Global Banking and
Asian Private Banker
Awards 2021 Finance Awards 2022
Awards for
Distinction 2022
Excellence in Innovation Digital Bank of the Year Best Digital Bank in

- Banking Philippines Philippines 2022 Southeast Asia 2022
2022
The Asset Triple A Digital Capital Finance
Global Banking and Awards 2022 International (CFI.co)

Finance Awards 2022
Best Bank Best Bank for Financial Best Bank for Customer
in the Philippines 2022 Inclusion Program 2022 Experience in South
(back-to-back) (South East Asia) East Asia 2022
The European The European Global Brands Magazine
Mobile Banking and

Payment Initiative of SME Bank of the Year Domestic Retail Bank
the Year Philippines Philippines of the Year Philippines
Asian Banking and Asian Banking and Asian Banking and

Finance - Retail Banking Finance - Retail Banking Finance - Retail Banking
Awards 2022 Awards 2022 Awards 2022
Outstanding Digital Most Recommended
Best Bank Best SME Beyond Banking Most Innovative Branch CX - Payments and Retail Bank in the
for ESG 2022 Service Initiative (for Offering (The Portal Collection Services Philippines
UnionBank GlobalLinker) Manager’s Check) (UPay)
Asiamoney Philippine The Asian Banker
Country Awards 2022 The Digital Banker - Retail Banker International Global Excellence in
The Digital Banker Retail Financial
Global SME Banking - Asia Trailblazer Awards
- Digital CX Awards Services Awards 2023
Awards 2023 2023
2023
Outstanding SME Supply Trailblazing Use of AI Best Customer Experience Best for Wealth Transfer/
Best Investor Relations Chain Finance Solution (for or Machine Learning in via Mobile and Internet Succession Planning in the
Company (UnionBank) UnionBank Supply Chain Financial Services Banking Philippines
Financing) (AML STR Alerts) (The Portal)
12th Asian Excellence Awards Asiamoney Private Banking
(Corporate Governance Asia) The Digital Banker - Global Retail Banker International - The Digital Banker - Digital Awards 2023
SME Banking Awards 2023 Asia Trailblazer Awards 2023 CX Awards 2023 55
Best Innovation in Retail Best Retail Bank in the Best Digital Banking Service Excellence in Internet Best for Philanthropic
Banking Philippines 2022 Philippines 2022 in the Philippines 2022 Banking Services in the Philippines
(The Portal)
International Banker The Asian Banker Philippine The Asian Banker Philippine Asiamoney Private Banking
Country Awards 2022 Country Awards 2022 Retail Banker International - Awards 2023
Asia Trailblazer Awards 2023

Most Influential CEO Rank 3 - Best Individual Top 10 CMOs in the Rank 2 - Best Individual Highly commended -
of the Year 2022 Research (Jun Trinidad) Philippines (Albert Sales (Rossanna Refuerzo) Best Individual Sales
Cuadrante) (Michaela Fernandez-Vita)
The European Asset Benchmark Research Asset Benchmark Research
Awards 2022 CEO Insights Asia Magazine Awards 2022 Asset Benchmark Research
Awards 2022
Asia’s Best CEO Highly commended - Highly commended - Best Investor Relations Rank 8 - Most Astute
(Edwin R. Bautista) Best Individual Trading Best Individual Trading Professional Investor (Jan Patrick Ching)
(Gerardo Cruz, Jr.) (Christopher Justine Mendoza) (Carlo Enanosa)
12th Asian Excellence Awards Asset Benchmark Research
(Corporate Governance Asia) Asset Benchmark Research Asset Benchmark Research 12th Asian Excellence Awards Awards 2022
Awards 2022 Awards 2022 (Corporate Governance Asia)
Highly commended - Management Excellence CIO of the Year CISO of the Year Management Excellence
Most Astute Investor Award (Edwin R. Bautista) (Henry Aguda) (Joey Rufo) Award (Board Director
(Charmaine Kan) Francis Lim)
BizNewsAsia Management ISOG Cybersecurity ISOG Cybersecurity
Asset Benchmark Research Excellence Awards 2022 Excellence Awards 2022 Excellence Awards 2022 BizNewsAsia Management
Awards 2022 Excellence Awards 2022
Highly regarded for
Philippine Blockchain Asia’s Best CFO Most Inspiring CMOs of Highly regarded domestic wealth transfer/succession
Leader of the Year (Jose Emmanuel U. Hilado) 2022 (Albert Cuadrante) private bank in the planning in the Philippines
(Dr. Justo A. Ortiz) Philippines 2022 2022
12th Asian Excellence Awards C Level Focus Magazine
(Corporate Governance Asia) Asiamoney Private Asiamoney Private
Philippine Blockchain
Banking Awards 2022 Banking Awards 2022
Week 2022
Best Retail Bond Philipines Best multi-product financing Highly Commended:

(UnionBank of the Philippines (Cebu Pacific US$840 million Best Digital CX - Account Top 5 Fixed-Income Anvil for Multimedia
9 billion pesos dual-tranche capital raising and liabilities Opening and Customer Brokering Participant PR Tools (Tech hUB)
56 fixed rate bond) re-profiling) Onboarding
PDS Group - PDS Annual 58th Anvil Awards
The Asset Triple A The Asset Triple A The Digital Banker’s Awards 2023
Sustainable Capital Sustainable Capital Markets Digital CX Awards 2022
Markets Country & Country & Regional Awards
Regional Awards 2021 2021 Awards 2021
Best ATM Project Winner- Best Application Highly Commended- Best

Philippines 2022 Winner: Best Transaction Winner: Outstanding Digital of Data Analytics (for DSAI’s Advance in Customer
(i2i Mobile ATM) Bank for CX CX - Payments Data Vault) Relationship Management
(UPay for MSMEs) (for RBC’s Max)
The Asset Triple A The Digital Banker’s Digital Retail Banker International
Digital Awards 2022 CX Awards 2022 The Digital Banker’s - Asia Trailblazer Awards Retail Banker International
Digital CX Awards 2022 2022 - Asia Trailblazer Awards
2022
Highly Commended- Best
Highly Commended- Best Highly Commended- Best Highly Commended- Best
Strategic Partnership
Advance in Payments (for Fintech Partnership (for Remittances Service (for Silver Stevie: Leadership
(Winning initiative: UBP
TBC’s UPAY) FBG’s Fintech Business FBG - Western Union) Training
Business Solutions Fintech
Solutions)
Retail Banker International Retail Banker International Partnerships
Stevie Awards for Great
- Asia Trailblazer Awards Retail Banker International - Asia Trailblazer Awards Employers 2022
2022 2022 Retail Banker
- Asia Trailblazer Awards
International - Asia
2022
Trailblazer Awards 2022
Philppines Technology Philppines Technology Winner: Outstanding

Excellence Awards for Excellence Awards for Rank 2 - Top Investment Financial Inclusion in Highest Consumer Credit
Analytics - Banking Digital - Banking House (UnionBank) Response to COVID-19 Cards Growth
Asian Technology Asian Technology Asset Benchmark Research The Digital Banker’s Global Visa Annual Awards 2022
Excellence Awards Excellence Awards Awards 2022 Retail Banking Innovation
2022 2022 Awards
Best Social Media

Cloud Transformation Engagement Initiative/ Best in Future of Digital Platinum Employer Highest Commercial
Innovator Award Application Infrastructure of the Year Payment Volume Growth
Vmware 2022 Customer The Asian Banker - IDC Future Enterprise Philippine HR Awards 2022 Visa Annual Awards 2022
Achievement Awards Excellence in Retail Awards Philippines 2022
Financial Services
Awards 2022
Best Local Currency
2022 Transformation Best in Future of Industry Best Companies to Work 2023 Celent Model Bank Bond (Union Bank of the
Champion Award Ecosystems for in Asia for Cloud Migration Philippines 11 billion pesos
digital bond)
BIAN (Banking Industry IDC Future Enterprise HR Asia Best Celent Model Bank Awards
Architectural Network) Awards Philippines 2022 Companies to Work for 2023 The Asset Triple A Country
Awards 2022
in Asia Awards 2022 Awards for Sustainable
Finance 2023
Rank 2 - Top sellside firm Bronze Stevie: Employer Bronze Stevie: Achievement
(UnionBank) of the Year Banking in Employee Engagement
Asset Benchmark Research Stevie Awards for Great Stevie Awards for Great 57
Awards 2022 Employers 2022 Employers 2022
Highest Consumer Credit Highest Active Credit Cards 2022 Transformation

Payment Volume Growth Growth Champion
Visa Annual Awards 2022 Visa Annual Awards 2022 1st BIAN Transformation
Awards

The Next 100 Global 2023 Celent Model Bank Best Corporate Mobile
Awards 2023 for Cloud Migration Application (The Portal)
Global Banking and Finance Celent Model Bank Awards The Asset Triple A Digital
Awards 2023 2023 Awards 2023
Top Consumer Debit Card Philippine In-House Top 5 Fixed-Income

Issuer Team of the Year Cash Settlement
Visa Annual Awards 2022 7th ALB Philippine Law Awards PDS Group - PDS Annual
(Asian Legal Business) Awards 2023
Highly Commended- Best Highly Acclaimed: Best SME “Special Citation: For
Fintech Partnership (UBP Business Current Account/ being the pioneer user of
Digital Business Solutions Transaction Account the Proof-of-Concept PDTC
Synergy Program) (for UnionBank BizStarter Digital Registry and Digital
Account) Depository and
Retail Banker International -
the first bank to issue
Asia Trailblazer Awards 2023 The Digital Banker - Global
and list a digital bond”
SME Banking Awards 2023
PDS Group - PDS Annual

Awards 2023
KEY OFFICERS
58
ATTY. JOSELITO V. BANAAG CARLO I. EÑANOSA JOSELYNN B. TORRES

Corporate Secretary Chief Investor Relations Officer Chief Compliance
and Governance Officer
59

ERIC S. LUSTRE MYRNA E. AMAHAN JOSE PAOLO G. RUFO ROMMEL JASON L. GALANG
Trust & Investment Services Internal Audit Group Head Chief Information Security Officer/ Chief Security Officer
Group Head Data Privacy Officer
THE CEO T
he UnionBank Innovation Campus (UBIC)
is a futuristic hub for collaboration to foster
innovation among partners and technologies.
The 800-seater building was built and developed over
a 1-hectare master planned complex in San Pedro,
Laguna. It is set to become LEED Gold certified.
AWARDEES His Excellency, President Ferdinand Marcos, Jr.,

together with Secretary Alfredo Pascual of the
2022
Department of Trade and Industry and Bank
Directors, inaugurated the UBIC on September 2022.
The unveiling coincided with the first UnionBank
Innovation Festival held in the campus.
60
The team was recognized as CEO Awardees for the
members’ contribution in levelling up innovation
through the first smart campus for a financial
institution within the Asia Pacific.
CORE MEMBERS:
Arceo, Ronald Gerard Dy, Norife Pablo, Roy

Belleca, Marc Galang, Rommel Roa, Stewart
Bernardino, Jaysel Garcia, Andrew Ruelan, Paula
Buencamino, May Gelido, Bianca Soliman, Jose Paulo
Cabrieto, John Ricky Ileto, James Morris Soriano, Mourese 61
Casal, Agnes Kumar, Jacqueline Tiansing, Mary Ann
Casas, Catherine Nath, Munmun Velasco, Chester
Deang, Dave Michael Ocampo, Marcelino Villareal, Melinda
Dy, Kim

EXECUTIVE SPONSORS
Edwin R. Bautista Albert C. Cuadrante

Ana A. Delgado Jobart T. Dator
Henry R. Aguda Ramon Vicente V. De Vera
Ramon G. Duarte Montano M. Dimapilis
Dennis D. Omila Michael P. Magbanua
Michelle E. Rubio Jose Paolo G. Rufo
Francis B. Albalate Paula S. Joson
SUBSIDIARIES
62
HENRY RHOEL R. AGUDA LORENZO T. OCAMPO

63

JOHN F. JANUSZCZAK MANUEL G. SANTIAGO, JR. RAMON MELCHOR E. TEJERO
SUBSIDIARIES
CITY SAVINGS BANK UBP INVESTMENTS FIRST UNION DIRECT FIRST UNION PLANS, INC.
CORPORATION CORPORATION
ANA MARIA A. DELGADO EDWIN R. BAUTISTA
Chairperson JOSE EMMANUEL U. HILADO ANTONIO SEBASTIAN T. CORRO Chairman
Chairman Chairman
LORENZO T. OCAMPO ROMEO C. KAGALINGAN
Vice Chairman & CEO PETER ISMAEL F. QUIAMBAO ROMEO C. KAGALINGAN President
President President
MANUEL G. SANTIAGO, JR.
President & COO PROGRESSIVE BANK
PETNET, INC. FIRST UNION INSURANCE AND
FINANCIAL AGENCIES, INC. BEATRIZ B. ROMULO
64 UBX PHILIPPINES MANUEL G. SANTIAGO, JR. Chairperson
CORPORATION Chairman MARY JOYCE S. GONZALEZ
Chairperson DOLLIE B. BUENCONSEJO
HENRY RHOEL R. AGUDA ADRIAN ALFONSO T. OCAMPO Acting President
Chairman President NERISSA A. GONZAGA
President
JOHN F. JANUSZCZAK
President & CEO BANGKO KABAYAN, INC.
LORENZO T. OCAMPO
UNIONDIGITAL BANK, INC. Chairman
JUSTO A. ORTIZ BEATRIZ B. ROMULO

Chairman President & CEO
HENRY RHOEL R. AGUDA

President & CEO FAIRBANK INC.
TEODORO M. PANGANIBAN
UNIONBANK FINANCIAL Chairman
SERVICES AND INSURANCE
BROKERAGE, INC. WILLIAM AMADO B. CASTAÑO
President
MANOJ VARMA
Chairman
RAMON MELCHOR E. TEJERO

President & CEO
TEODORO M. PANGANIBAN WILLIAM AMADO B. CASTAÑO

65
JOSE EMMANUEL U. HILADO PETER ISMAEL F

. QUIAMBAO ADRIAN ALFONSO T. OCAMPO BEATRIZ B. ROMULO

ROMEO C. KAGALINGAN NERISSA A. GONZAGA DOLLIE B. BUENCONSEJO
RISK
MANAGEMENT
Risk Culture and Philosophy

Given that banks and financial institutions are in the business of taking risks, UnionBank
operates according to its established risk philosophy, where the Board is responsible for
approving, reviewing, supervising, and overseeing the Bank’s risk strategy, risk policies,
risk appetite and risk limits. Following the Board’s instructions, the Bank’s Senior Management
and various risk management committees set up independent risk management functions
to ensure that risks are properly understood, controlled, and managed, in addition to the
risk processes which must be clearly aligned with the Bank’s business strategies.
Risk Appetite and Strategy

66 UnionBank’s risk appetite is the level of risk that it is prepared to accept in pursuit of its
business objectives and strategies. It is consistent with UnionBank’s risk-taking capacity.
UnionBank’s risk appetite is set by the Board of Directors. The risk appetite cannot be
defined by a single number as it has many dimensions and is a combination of regulatory
requirements and internal policy limits. The Bank’s appetite for risk is influenced by a
range of factors, including whether a risk is consistent with its core strategy and whether
an appropriate return can be achieved from taking that risk. UnionBank has a lower
appetite for risks that are not part of its core strategy.
Risk Appetite Framework

A risk appetite framework has been established, which includes the Board-approved
risk appetite statements and the related risk policies and limits.
The risk appetite statements establish the philosophy and high-level boundaries for risk-taking
activities across UnionBank. The risk policies and limits give more specific guidance for
particular risks, providing clarity for management in making day-to-day decisions.
The specific appetite for each risk type is implemented and enforced by an extensive set
of specific limits, controls, and governance processes.
Risk Structure and Process

The Bank’s risks are managed enterprise-wide by all units of the Bank as it adopted the
Three Lines of Defense Model in Enterprise Risk Management (ERM). The risks, processes,
systems, compliance and controls are identified by the Business Units (1st line). The risks
are measured by ERM to establish the controls and limits to mitigate the risks, likewise
other controls identified by the Business Units to mitigate the risks are assessed based
on design and effectiveness by ERM, Information Security and Compliance (2nd line).
The internally developed risk measurement models used are validated by an independent
party while the assessments of controls are validated by Internal Audit (3rd line).
Tying all this up is an active oversight function by the Board of Directors. The Bank
maintains transparent dealings with both external auditors and regulators in relation
to the business, vision, plans and strategies.
b. The Risk Management Committee (RMC), composed of seven members of the
BOD, shall advise the Board of the Bank’s overall current and future risk appetite,
oversee Senior Management’s adherence to the risk appetite statement,
and report on the state of risk culture of the Bank.
c. The Market Risk Committee (MRC), composed of nine members of the BOD,
majority of whom are independent directors, including the Chairman.
The Committee is primarily responsible for reviewing the risk management
policies and practices relating to market risk including interest rate risk in the
banking book and liquidity risk.
67
d. The Operational Risk Management Committee (ORMC), composed of at least
three (3) members of the Board of Directors (BOD), majority of whom are
independent directors, including the Chairman, reviews various operational
risk policies and practices.
e. The Audit Committee (AudComm) is composed of at least seven members

with at least four Independent Directors. All its members are appointed

by the Board of Directors with most members, including the Chairman,
The Board of Directors (BOD) exercises oversight of the Bank’s risk management preferably with accounting, auditing, or related financial management
process as a whole and through its various risk committees. For the purpose of expertise of experience. The Audit Committee has an ongoing responsibility
day-to-day management of risks, the Bank has established independent risk management of assessing the effectiveness of the control environment, including the
units (RMUs) that objectively review and ensure compliance to the risk parameters set interrelation of other internal control components. It also serves as principal
by the BOD. They are responsible for the monitoring and reporting of risks to senior agent of the BOD in ensuring independence of the Bank’s external auditors
management and the various committees of the Bank. The BOD is primarily responsible and the internal audit function, the integrity of management, and the adequacy
for setting the risk appetite, approving risk parameters, credit policies, and investment of disclosures and reporting to stockholders. It also oversees the Bank’s financial
guidelines, as well as establishing the overall risk-taking capacity of the Bank. To fulfil its reporting process on behalf of the BOD. It assists the BOD in fulfilling its fiduciary
responsibilities in risk management, the BOD has established the following Committees, responsibilities as to accounting policies, reporting practices and the sufficiency
whose functions are described below. of auditing relative thereto, and regulatory compliance.
a. The Executive Committee (EXCOM), composed of seven members of the BOD,

exercises certain functions as delegated by the BOD including, among others,
the approval of credit proposals, asset recovery and real and other properties
acquired (ROPA) sales within its delegated limits.
RISK
MANAGEMENT
ANTI-MONEY LAUNDERING CUSTOMER IDENTIFICATION AND ACCEPTANCE
The Bank maintains a system of verifying the true identity of its clients by establishing
a clearly written customer acceptance and identification policy and procedures,
including a set of graduated money laundering criteria for clients categorized depending
on the risk it may pose to the Bank. In case of corporate and juridical entities, the legal
existence, ownership and control structures as well as the authority and identification
of all persons going to act on their behalf are verified. The Bank’s risk assessment considers
all relevant risk factors that are documented and updated periodically. From the resulting
risk assessment, the appropriate level of due diligence is applied. Name screening
68
is employed to assist with the identification of sanctioned individuals and organizations,
persons convicted of AML crimes, as well as the illegal activity to which the Bank may be
exposed. The screening is done at two levels: customer and transaction, where the customer
name screening is done during onboarding and throughout the lifecycle of the customer
relationship. And, as part of the recent acquisition of Citibank’s Consumer Business in the
Philippines in 2022, UnionBank subscribed to Base60 to maintain continuity of management
of Citibank’s reportable, covered transactions.
The provisions of the Bank’s MTPP are Implemented in a manner that is non-discriminatory
to all customer types, ensuring that political exposure, religion, race or ethnic origin are not
used as the only basis to deny access to the Bank’s services.
RECORD KEEPING AND RETENTION
GOVERNANCE, CULTURE AND ACTIVITIES

Banking units, groups and branches responsible for safekeeping records and documents
as required under the AMLA, as amended, are obligated to ensure that the aforementioned
The members of the Board, Senior Management and all employees of the Bank strictly
records are made readily available during examinations and/or audits conducted
adhere to the provisions of the Anti-Money Laundering Act (AMLA) as amended,
by its regulators.
Revised Implementing Rules and Regulations (RIRR) and its own Money Laundering
and Terrorist Financing Prevention Program (MTPP).
As a general policy, all customer identification records, such as identification documents,
signature cards and documentary requirements submitted by the clients and records
To ensure full compliance with the AML regulations, employee awareness is key;
pertaining to customer due diligence performed by Bank personnel, shall be maintained
thus, timely dissemination of the MTPP manual and new AML Issuances and
and safely stored as long as the account exists.
periodic AMLA Training are conducted.
The Anti-Money Laundering Committee (AMLACOM) was created to provide management

oversight regarding the implementation of the Bank’s AML risk management policies
and procedures. The AMLACOM reports to the Corporate Governance Committee (CGC),
which in turn assists the Board in fulfilling its responsibilities in the prevention of
money laundering and terrorist financing.
Meanwhile, all transaction records, including all unusual or suspicious patterns of account REPORTING OF COVERED AND SUSPICIOUS TRANSACTIONS
activity whether or not a Suspicious Transaction Report (STR) was filed with the AMLC,
are maintained and stored for five (5) years from date of transaction as required by law. The designated Operations Unit oversees the transaction monitoring and reporting system
for Covered Transactions (CTRs) and Suspicious Transactions (STRs), in coordination
In case of account closure, record on customer identification, account files and business with the various units or groups within the Bank. The Unit ensures that the system is
correspondences are preserved and safely stored for at least five (5) years. working effectively and regularly reviewed so that reports to the regulatory agencies
continue to be accurate and submitted within the prescribed period. The Compliance
When the account is involved in a money laundering case, its account opening and and Corporate Governance Office (CCGO) performs the final review of the STRs prior
transaction documents are retained until the case is decided with finality. to filing and automated submission by the system.
69
Digital solutions via Robotic Programming Application (RPA) and electronic
dashboards are implemented for monitoring of AML transaction alerts, tracking of AML
review completion, and handling of AML regulatory report submission.
TRAINING
Formulation and conduct of AML training and dissemination of updates regarding AML
best practices for the members of the Board, Senior Management, Officers and Staff

of the Bank and service providers are done by the Compliance and Corporate Governance
Office (CCGO). CCGO ensures that all training materials are regularly updated
and prepared for the targeted recipients.
AML Training forms part of the New Employee Organization Program (NEOP)
and is required to be taken by all newly-hired employees. Refresher courses are likewise
provided to employees to ensure that they are updated with AML regulations
and best practices. These refreshers are conducted in regional training caravans
and via online or E-learning modules to be taken by employees on an annual basis.
CORPORATE
GOVERNANCE
INTRODUCTION Separation of the roles of the Chairman and CEO

The positions of the Chairman of the Board and the President & CEO are held by
Banks have played, and continue to play, a significant role in developing sustainable different individuals to foster an appropriate balance of power, increased accountability,
economies and shaping recovery. Over the last few years, however, the banking industry effective decision making, and good governance. The division of the responsibilities and
has witnessed unprecedented challenges and lingering uncertainties brought about by the accountabilities between the Chairman and the President & CEO is clearly articulated and
constantly evolving economic, environmental, business, and regulatory landscape. delineated in our governance policies.
As the pace of change continues to accelerate, financial institutions are now forced The Chairman facilitates discussions of key issues by fostering an environment conducive
to rethink their business models and embrace technology to thrive, and not just survive. to constructive debate and leveraging on the skills and expertise of individual directors.
He also makes certain that the meeting agenda focuses on strategic matters, including
70 At UnionBank, we have always been enablers of change, constantly co-creating key governance concerns.
innovations for a better world, which also allows us to anticipate and respond quickly
to satisfy our stakeholders’ needs, demands, and expectations. The President & CEO executes and administers the policies approved by the Board
and exercises such powers vested in him by the Board. He is also responsible for the
Our approach to good corporate governance has always been built upon our commitment general supervision, administration, and management of the business and affairs of the
to leverage technology as a driver of sustainable business to ensure that no one gets left organization.
behind. We have not wavered in this commitment, even in the face of strict and rigorous
supervision, regulatory, and governance standards. Lead Independent Director
The Lead Independent Director performs a more enhanced function over the other
This report has been prepared pursuant to the disclosure requirements of the Manual independent directors and leads them at Board meetings in raising queries and pursuing
of Regulations for Banks (MORB) of the Bangko Sentral, recommendations of the matters, including discussion of risk appetites, and key control and governance concerns.
SEC Memorandum Circular No. 19, Series of 2016 otherwise known as the Code
of Corporate Governance for Publicly Listed Companies, and the prevailing Vice Chairman
best practices contained in the ASEAN Corporate Governance Scorecard (ACGS). The Vice Chairman of the Board takes on the role of the Chairman in the absence
of or upon request by the Chairman.
OUR CORPORATE GOVERNANCE STRUCTURE
Board Committees
Stockholders The Board has established various committees to oversee specific areas of the
Our stockholders are the ultimate owners of our business and serve as the highest organization. These committees delve deeper into the details of their respective
authority in our governance structure. They enjoy the benefits of strong corporate mandates and areas of expertise, and report back to the Board. The composition,
governance, which we believe is critical not only for the success of the organization functions, and responsibilities of all committees are properly defined and established
but also in advancing the interests of our shareholders. in their respective charters.
Board of Directors Corporate Secretary

Our Board of Directors serves as the governing body elected by the stockholders Our Corporate Secretary assists the Board and the board committees in the conduct
that exercises the corporate powers of the organization and has the fiduciary of their meetings. He also preserves the integrity of all documents, records, and other
responsibility to protect UnionBank and all its shareholders. information essential to the conduct of his duties and responsibilities to the organization.
He is a Filipino and a resident of the Philippines.
The Board approves and oversees the company’s vision, mission, and strategic priorities,
as well as monitors the implementation of our corporate governance framework.
Chief Compliance and Corporate Governance Officer BOARD MATTERS
Our Chief Compliance and Corporate Governance Officer monitors and ensures the
compliance of the organization with the relevant rules and regulations on corporate Board composition
governance. As the Head of the Compliance function, she also oversees the identification Our 15-member Board is composed of directors who bring a wide range of skills and
and management of the regulatory compliance risks faced by the organization. deep industry experience to our Boardroom. Our directors are elected at the
annual meeting of stockholders, each of whom holds office for a term of one year,
Chief Risk Officer or until his successor has been chosen and qualified.
Our Chief Risk Officer leads the development of the risk appetite of the organization.
He reviews and implements appropriate policies, processes, and systems to ensure that In terms of degree of independence, our Board has three classifications of directorship.
the risk management capabilities of the organization are sufficiently robust and effective
to fully support strategic objectives and risk-taking activities. Our executive directors are members of the Board who are actively involved in the
71
day–to–day management and have executive responsibility for the operations of a
Chief Audit Executive part or whole of the organization, while the non-executive directors have no executive
Our Chief Audit Executive develops an audit plan based on robust risk assessment, responsibility and does not perform any work related to the operations of the company.
including inputs from the Board, and ensures that such plan is comprehensive and
adequately covers regulatory matters. She provides reasonable assurance that the key Independent directors (who are also considered as non-executive directors) are members
procedural controls of the organization are effective, appropriate, and complied with. of the Board who are independent of management and the controlling shareholder and
are free from any business or other relationship which could, or could reasonably be

Management Committee perceived to, materially interfere with his exercise of independent judgment in carrying
Our Management Committee (MANCOM) is composed of highly qualified leaders out his responsibilities as a director. Our independent directors serve up to a maximum
and respected practitioners in the fields of business, banking and finance, technology, of nine cumulative term of nine (9) years. After which, the independent director is
marketing and other relevant disciplines. perpetually barred from serving as independent director in the bank, but may continue to
serve as a regular director.
The MANCOM provides guidance on strategic decisions consistent with the
Bank’s purpose, brand, and core values and reviews policies and procedures The following changes to the composition of the Board occurred prior to the issuance of
that govern the Bank’s businesses and operations while giving due consideration this report:
to the interests of various stakeholders. Election of Samel A. Aboitiz vice Juan Alejandro A. Aboitiz at the annual
stockholders’ meeting held in April 22, 2022;
Subsidiaries Ron Hose stepped down from the Board effective August 26, 2022, due to
Together with our subsidiaries, we provide a full range of banking and other personal reasons;
financial services to different market segments. Our subsidiaries enable us to be SSS-nominee directors Michael G. Regino and Atty. Ricardo L. Moldez stepped
a highly diversified banking group that spans across digital banking, thrift, down from the Board effective January 27, 2023; and
and rural banking, to name a few. Election of Rolando L. Macasaet and Robert Joseph M. De Claro as nominee
directors of SSS, effective January 27, 2023, to serve the unexpired terms of
office of Mr. Regino and Atty. Moldez, respectively.
CORPORATE
GOVERNANCE
Board diversity, skills, and competencies GENDER DIRECTORSHIP

Over the last few years, the makeup of our Board has changed dramatically to align
with the diversity of the customers and markets we serve. We are ramping up our efforts
to attract diverse talents and leaders into our organization, which allow us to think
differently, solve problems more creatively, raise challenging questions, and make more
2 2
accurate decisions.
5
We believe that achieving diversity in the Boardroom is a step towards better governance.
As a matter of transparency, we have identified the following measurable objectives for
72
implementing our Board Diversity Policy and the progress in achieving these objectives,
in compliance with the standards espoused by the ASEAN Corporate Governance Scorecard: 13 8
13
At least two (2) female directors or 10% of the total board membership,
whichever is higher
At least 50% of the Board members have background or experience Female Male
Executive
in banking and financial services Non-executive
At least 50% of the Board members have attended a training Independent
on anti-money laundering
At the time of writing, our Board has achieved the above-mentioned diversity targets.
Collectively, the competencies, skills, experience, and qualifications of our individual
directors span different industries and sectors, including banking and financial services, AGE TENURE
utilities, construction, manufacturing, power, infrastructure, pharmaceutical, food and
beverage, and real estate. 2 3
In terms of gender diversity, we have two (2) female directors in the Board. 2 3
We have five (5) out of nine (9) Board committees with female representation.
6
In terms of the type of directorships, we have two (2) executive directors,
while the remaining Board members are non-executive and/or independent.
11 3
Our Board is also composed of directors with a mix of age and tenure, with new and
younger directors bringing fresh ideas and perspectives into the table, while more senior
and longer serving directors contributing institutional knowledge and insights about the
31 to 50 yrs. old 51 to 70 yrs. old Less than 1 yr. 1 to 5 yrs.
business, operations, and history of the organization.
71 and above 6 to 10 yrs More than 10 yrs.
Our Board is satisfied that the current demographics of the Board is diverse enough
to meet the needs of the organization.
The skills set matrix of our Board can be found on the Corporate Governance subsite
of our company website.
Board vacancies Board meetings and attendance
In accordance with Republic Act No. 11232 otherwise known as the Revised Corporation The Board devotes sufficient time and attention to discuss and deliberate on
Code of the Philippines, any vacancy occurring in the Board other than by removal or by important matters and issues at hand. Regular meetings of the Board are held monthly,
expiration of term is filled by the vote of at least a majority of the remaining directors, the schedule of which is set before the start of the calendar year. Special meetings
if still constituting a quorum; otherwise, said vacancies are filled by the stockholders may be called if needed.
in a regular or special meeting called for that purpose.
The agenda of the meetings, meeting materials, and supporting documents are uploaded
A director elected to fill a vacancy is referred to as replacement director and serves only to the Diligent Board, a secure board portal, at least five working days in advance,
for the unexpired term of the predecessor in office. to give ample time for the directors to study the materials and prepare for the meeting.
Board nomination and election The meetings are convened and presided over by the Chairman of the Board.
73
We have established strict and rigorous vetting and selection procedures, as summarized Board members engage in healthy debate, ask questions, and seek clarifications
below, to effectively review the qualifications of nominees. on the proposals presented.
The Compliance and Corporate Governance Office (CCGO) through the In cases where a decision is to be arrived at by the Board, the quorum requirement for
Corporate Secretary accepts the nominations from the shareholders. each Board meeting shall be at least two-thirds (2/3) of all the members of the Board.
As a matter of policy, any stockholder, whether majority or minority,
has the right to nominate candidates for seats in the Board. Board members who cannot physically attend or vote at any meeting can participate

CCGO reviews the profile of the nominees against ‘fit and proper’ standards to and vote through remote communication such as videoconferencing, teleconferencing,
ascertain that they possess all the qualifications and none of the disqualifications or other alternative modes of communication.
stipulated under the Manual of Regulations for Banks (MORB) and other
applicable requirements under existing laws. Qualified nominees are requested to In 2022, the Board held a total of fourteen (14) meetings. All directors have complied
accomplish a questionnaire or nomination form. with the 50% minimum attendance requirement to be eligible for re-election, and the
CCGO presents the nominees to the Corporate Governance Committee (CGC). 75% attendance rate recommended by the parameters of the ASEAN Corporate
CGC endorses final list of nominees for Board approval. Governance Scorecard.
Once approved by the Board, election of directors will be held at the annual
meeting of the shareholders. No. of No. of
% of
Name meetings meetings held1
attendance
We also consider the use of professional search firms, industry databases, attended
or other external sources to search for qualified candidates to the Board. Erramon I. Aboitiz 14 14 100.00
In 2022, we reached out to the Institute of Corporate Directors to assist us
Justo A. Ortiz 14 14 100.00
in our search for candidates.
Edwin R. Bautista 14 14 100.00
Upon election, the CCGO prepares and submits the required certifications and
Sabin M. Aboitiz 13 14 92.86
other documentary and reportorial requirements, in coordination with the
directors concerned, in support of our request for the confirmation of their election Manuel R. Lozano 14 14 100.00
by the BSP Monetary Board.
Juan Alejandro A. Aboitiz2 4 4 100.00
Ana Maria A. Delgado 14 14 100.00

CORPORATE
GOVERNANCE
No. of No. of In 2022, the sessions were held on March 25 and August 26. A representative of the
% of
Name meetings meetings held1 External Auditor attended the second session.
attendance
attended
Nina Perpetua D. Aguas 14 14 100.00 No. of No.
% of
Name meetings of meetings
Michael G. Regino 14 14 attendance
100.00 attended held1
Aurora C. Ignacio3
2 2 Roberto G. Manabat2 2 2 100.00
100.00
Roberto G. Manabat 14 14 Erramon I. Aboitiz 2 2 100.00
100.00
Ron Hose4 10 10 Justo A. Ortiz 2 2 100.00
74 100.00
Manuel E. Escueta 14 14 Sabin M. Aboitiz 2 2 100.00
100.00
Josiah L. Go 14 14 Manuel R. Lozano 2 2 100.00
100.00
Francisco Ed. Lim 14 14 Juan Alejandro A. Aboitiz 3
1 1 100.00
100.00
Ricardo L. Moldez5 12 12 Nina Perpetua D. Aguas 2 2 100.00
100.00
Samel A. Aboitiz6 9 10 Michael G. Regino 2 2 100.00
90.00
Ron Hose4
1
Represents no. of Board meetings held in 2022 and during the incumbency of the director, 1 1 100.00
as the case may be
2
Juan Alejandro A. Aboitiz stepped down from the Board effective April 22, 2022 Manuel D. Escueta
3
Aurora C. Ignacio stepped down from the Board effective March 25, 2022 2 2 100.00
4
Ron Hose stepped down from the Board effective August 26, 2022
5
Ricardo L. Moldez joined the Board to fill up the position vacated by Aurora C. Ignacio, Josiah L. Go 2 2 100.00
effective March 25, 2022
6
Samel A. Aboitiz joined the Board to fill up the position vacated by Juan Alejandro A. Aboitiz Francisco Ed. Lim
effective April 22, 2022 2 2 100.00
Ricardo L. Moldez5 2 2 100.00

Apart from the regular and special meetings of the Board, the non-executive directors
Samel A. Aboitiz 6
1 1 100.00
also meet to have an open discussion among themselves and provide an effective check
on management on issues that may pertain to audit, risk, compliance, or governance. 1 Represents no. of Non-Executive Board meetings held in 2022 and
during the incumbency of the director, as the case may be effective January 27, 2023
The topics may include challenges encountered in Management performance vis-a-vis 2 Roberto G. Manabat, our Lead Independent Director, serves as the Chairman of the
the specific objectives on risk, control, and compliance. Non-Executive Board
3 Juan Alejandro A. Aboitiz stepped down from the Board effective April 22, 2022
4 Ron Hose stepped down from the Board effective August 26, 2022
5 Ricardo L. Moldez joined the Board to fill up the position vacated by Aurora C. Ignacio,
The sessions are attended by the members of the Board who do not occupy executive effective March 25, 2022
6 Samel A. Aboitiz joined the Board to fill up the position vacated by Juan Alejandro A. Aboitiz
positions in the Bank and by the Chief Compliance Officer, Head of Internal Audit, effective April 22, 2022
Chief Risk Officer, and the External Auditor Partner.
Board remuneration The questionnaire contains varying statements pertaining to the roles, functions
The non-executive directors each receive a per diem of P160,000.00 for attendance and responsibilities of the Board, its committees, and individual members, based on
in each meeting of the Board, except for the Chairman of the Board who receives leading corporate governance practices. Assessment metrics relate to board structure,
P240,000.00. leadership function, stakeholder relations, governance, controls, and conduct of
meetings and facilities.
The executive directors receive a per diem of P1,500.00 for attendance in
Board meetings and P3,000.00 for each committee meeting. The evaluation results are aggregated, analyzed, and reported by the Compliance and
Corporate Governance Office (CCGO) to the Corporate Governance Committee (CGC)
The Chairman of each committee receives a per diem of P120,000.00 per meeting and to the Board. To maintain the anonymity and confidentiality of the responses,
attended and a committee member receives a per diem of P80,000.00. results are presented with no attribution to the respondents.
75
Per diems and bonuses of some directors who represent institutional shareholders are Key findings are considered by the Board, and concrete action plans are being developed
received by said directors for and on behalf of their respective institutions. and implemented to address the gaps and areas for improvement noted.
The total annual compensation paid to our directors in 2022 can be found in our definitive In 2022, the results have been favorable and the Board as whole, its committees,
information statement sent to all shareholders and is also posted on our company website. and individual members have received affirmative ratings across all evaluation metrics.
There was no proposal to change the remuneration of directors presented during the Board induction, training, and continuing education

annual meeting of shareholders in 2022. We do not rest on our laurels because the world keeps changing at a pace much faster
than what we can imagine. Our Board champions lifelong learning to remain relevant
Board performance evaluation in these fast-changing times and be cognizant of what is happening in the world.
We believe in the concept of “Kaizen,” a Japanese term used to denote continuous
improvement, which has been fundamental to our growth momentum over the years. Upon joining the Board, new directors are properly oriented and briefed on matters
Our Board regularly carries out evaluations to appraise its performance as a collective pertaining to the organization’s structure, business, strategies, and governance.
body and individually, and assess whether it possesses the right mix of backgrounds Incumbent directors also attend continuing training programs and courses on
and competencies. specific regulations and corporate governance matters relevant to the organization,
including audit, internal controls, risk management, financial technology, sustainability,
Each year, Board members undertake the assessment of the performance and strategy.
and effectiveness of the Board, Board committees of which he is a member,
and key senior management members.
Performance of the individual members of the Board is also being assessed,

through self-assessment and independent assessment carried out by selected members
of management.
CORPORATE
GOVERNANCE
At the time of writing, our Board members have complied with the training requirements Training
Name Program Date
stated above. Provider
Corporate
Institute of
Training Governance
Name Program Date Robert Joseph M. De Claro March 08, 2023 Corporate
Provider Orientation
Directors
Program
Annual
Aboitiz Distinguished
Corporate Institute of
Erramon I. Aboitiz November 28, 2022 Equity Corporate
Governance Roberto G. Manabat October 20, 2022 Corporate
Ventures Governance
Training Directors
Speaker Series
Annual
Aboitiz Annual
76 Justo A. Ortiz
Corporate
November 28, 2022 Equity Corporate
Governance
Ventures Governance Bankers
Training
Training / Fraud Institute
Manuel E. Escueta March 24 to 25, 2023
Annual & Forgery of the
Aboitiz
Corporate Detection and Philippines
Edwin R. Bautista November 28, 2022 Equity
Governance Prevention
Ventures
Training Program
Annual Annual
Aboitiz
Corporate Corporate
Sabin M. Aboitiz November 28, 2022 Equity
Governance Governance
Ventures Mansmith
Training Josiah L. Go Training/ April 26 to 27, 2022
and Fielders
Mansmith
Annual Innovation
Aboitiz
Corporate Summit
Manuel R. Lozano November 28, 2022 Equity
Governance
Ventures
Training Advanced
Institute of
Corporate
Corporate Francisco Ed. Lim November 17, 2022 Corporate
Institute of Governance
Governance Directors
Samel A. Aboitiz April 27 to 28, 2022 Corporate Training
Orientation
Directors
Program
Annual Retirement and term limit
Aboitiz While prevailing governance standards would recommend the adoption of mandatory
Corporate
Ana Maria A. Delgado November 28, 2022 Equity
Governance retirement age limits for directors as a way to renew board composition, we believe that
Ventures
Training
this is not always the most viable option, since adopting a fixed limit on director tenure
Advanced would result in the arbitrary retirement of seasoned directors with valued expertise and
Institute of
Corporate
Nina Perpetua D. Aguas October 10, 2022 Corporate in-depth knowledge of the organization’s business, structure, and history.
Governance
Directors
Training
Corporate As an alternative to adopting a fixed retirement age limit for Board members, we have
Institute of
Governance established robust procedures on the re-election of incumbent directors, in accordance
Rolando L. Macasaet March 08, 2023 Corporate
Orientation with the ‘fit and proper’ rule, to ensure that they remain qualified for the position for the
Directors
Program
duration of their respective terms. Aptitude and integrity, professional diligence, and
independent judgement of individual directors are being evaluated on a yearly basis, The table below shows the number of shares comprising the Bank’s capital stock
as part of the Board’s performance assessment, the results of which are being considered (all of which are voting shares) owned of record by the directors as of February 28, 2023:
for their re-election.
Number of Shares,
Title of Name of Beneficial Percentage
For independent directors, we have also adopted a maximum cumulative term limit Amount, and Nature of Legal Citizenship
Class Owner of Class
and Beneficial Ownership
of nine (9) years. After which, the independent director is perpetually barred from serving
(r)
as independent director in the Bank, but may continue to serve as regular director. 436 P4,360.00 0.00%
Common Erramon I. Aboitiz Filipino
26,626,594 P266,265,940.00 (b) 1.13%
As of December 31, 2022, we have no independent director who has reached
(r)
this term limit. 4,440,678 P44,406,780.00 0.19%
Common Justo A. Ortiz Filipino 77
- - (b) 0.00%
Shareholdings
1,137,288 P11,372,880.00 (r) 0.05%
As a corporation vested with public interest, we have adopted strict policies Common Edwin R. Bautista Filipino
- - (b) 0.00%
governing trades of directors and key officers and those with access to material
non-public information. (r)
251,459 P2,514,590.00 0.01%
Common Sabin M. Aboitiz Filipino
3,408,579 P34,085,790.00 (b) 0.14%
Our Trading Blackout Policy restricts directors, officers, and employees who are privy
- - (r) 0.00%
to insider information to trade the Bank’s traded securities during a pre-determined Common Manuel R. Lozano Filipino
31,864 P318,640.00 (b) 0.00%

timeframe, which is the blackout period.
454,685 P4,546,850.00 (r) 0.02%
Common Samel A. Aboitiz Filipino
For structured events, blackout period is imposed beginning five (5) trading days - - (b) 0.00%
before the date of knowledge or the receipt of the material non-public information, (r)
Ana Maria A. 131,454 P1,314,540.00 0.01%
and until two (2) trading days after the submission of the periodic reports to the regulator. Common Filipino
Delgado
3,459,954 P34,599,540.00 (b) 0.15%
For unstructured events, it is the period from date of knowledge or receipt of 1 P10.00 (r) 0.00%
material non-public information to a period of not less than two (2) trading days Common Nina D. Aguas Filipino
- - (b) 0.00%
after the public disclosure of the event.
Robert Joseph M. 1 P10.00 (r) 0.00%
Common Filipino
De Claro - - (b) 0.00%
The Chief Compliance and Corporate Governance Office (CCGO) issues the
Rolando L. 1 P10.00 (r) 0.00%
Trading Blackout notice based on the scheduled and unscheduled disclosures for the year, Common Filipino
Macasaet - - (b) 0.00%
while the Corporate Secretary ensures compliance with the disclosure notices filed with
our regulatory agencies and the stock exchange. Roberto G. 81 P810.00 (r) 0.00%
Common Filipino
Manabat - - (b) 0.00%
81 P810.00 (r) 0.00%
Common Manuel D. Escueta (b) Filipino
- - 0.00%
(r)
81 P810.00 0.00%
Common Josiah L. Go Filipino
28,931 P289,310.00 (b) 0.00%
Atty. Francisco Ed. 9,678 P96,780.00 (r) 0.00%

Common Filipino
Lim - - (b) 0.00%
CORPORATE
GOVERNANCE
Interlocking positions Audit Committee

We are cognizant that effective sharing of managerial and technical expertise between The Audit Committee is tasked to provide oversight on the Bank’s financial
the Bank and other entities promotes economies of scale and organizational synergies. reporting process and the internal and external audit functions.
In this regard, we have established an effective governance process to ensure that the Moreover, the Audit Committee is mandated to monitor and evaluate the adequacy
benefits of having directors with interlocking positions in other entities are optimized, and effectiveness of the Bank’s systems of internal control, risk management and
in accordance with the principles set out under BSP Circular No. 1129, Series of 2021 corporate governance.
on the Amendments to Corporate Governance Guidelines for BSP–Supervised
Financial Institutions (BSFIs). No. of No. of % of
Name meetings meetings
78 attendance
As a general rule, interlocking directorships are allowed provided the positions do not attended held1
pose conflicts of interest. Board members with interlocking positions are reminded to Roberto G. Manabat2 13 13 100.00
comply with the Manual on Corporate Governance and Code of Conduct, and must avoid
circumstances that may appear or could result in conflicts of interest with UnionBank.
Manuel R. Lozano 13 13 100.00
Nina Perpetua D. Aguas 13 13 100.00

A non-executive director may concurrently serve as a director in a maximum of five (5)
publicly listed companies. In case the maximum is reached, the concerned director should
Aurora C. Ignacio3 4 4 100.00
explain how he will be able to devote sufficient time to the Bank and effectively discharge Francisco Ed. Lim 13 13 100.00
his responsibilities as director despite his numerous concurrent positions in other entities.
As of December 31, 2022, we have no director who has breached this limit on interlocking
Manuel D. Escueta 13 13 100.00
directorship positions held in publicly listed companies. Josiah L. Go 13 13 100.00
For monitoring and reporting purposes, the Chief Compliance and Corporate Governance
Office (CCGO), in coordination with the Human Resource (HR), submits to the BSP an 1 Represents no. of Audit Committee meetings held in 2022 and during the incumbency of the director,
as the case may be
annual report of all interlocking positions of its directors and officers within twenty (20) 2 Audit Committee is chaired by Roberto G. Manabat, an independent director, in compliance with the ACGS
3 Aurora C. Ignacio stepped down as member of the Audit Committee effective March 25, 2022
banking days from the end of each reference year. 4 Ricardo L. Moldez was appointed as member of the Audit Committee effective March 25, 2022
BOARD COMMITTEES Corporate Governance Committee

To the extent practicable, the Board may create committees of temporary or permanent The Corporate Governance Committee oversees our compliance and governance
nature and determine the committees’ composition, powers, and responsibilities. framework and ensures the adoption and consistent implementation of regulations
and governance policies in form and in substance. The Committee exercises
These committees serve as an avenue to maximize the specific competencies and governance oversight on the Bank’s subsidiaries and ensures adherence to our
knowledge of individual board members, and pursue a more specific and defined mandate Group Governance Policy.
compared to the Board as whole.
In addition, the Committee also assumes the role of the Nomination and Remuneration Executive Committee
Committee of the Board. The Executive Committee approves credit and loan transactions whether clean or
secured within the approved limits set by the Board, endorses credit transactions
No. of beyond the Committee’s approving limits for the approval of the Board, and approves
No. of % of
Name meetings such other transactions as may be initiated by the Bank’s business units within the
meetings held1 attendance
attended Committee’s limit of transactions.
Francisco Ed. Lim2 18 18 100.00
No. of
Justo A. Ortiz 18 18 100.00 No. of % of
Name meetings
attended
Sabin M. Aboitiz3 16 18 88.89
79
Erramon I. Aboitiz2 20 20 100.00
Manuel R. Lozano 20 20 100.00
Roberto G. Manabat 18 18 100.00
Ron Hose5 13 13 100.00
Sabin M. Aboitiz 20 20 100.00
Manuel D. Escueta 18 18 100.00

Josiah L. Go 18 18 100.00
Michael G. Regino6 10 12 83.33
Michael G. Regino 4
16 17 94.12
1 Represents no. of Executive Committee meetings held in 2022 and during the incumbency of the
1 Represents no. of Corporate Governance Committee meetings held in 2022 and during the director, as the case may be
incumbency of the director, as the case may be 2 Executive Committee is chaired by Erramon I. Aboitiz
2 Corporate Governance Committee is chaired by Francisco Ed. Lim, an independent director, 3 Aurora C. Ignacio stepped down as member of the Executive Committee effective March 25, 2022
in compliance with the ACGS 4 Michael G. Regino was appointed as member of the Executive Committee effective March 25, 2022
3 Sabin M. Aboitiz was appointed as alternate member (from regular member)
effective November 25, 2022
4 Aurora C. Ignacio stepped down as member of the Corporate Governance Committee Information Technology and Cybersecurity Committee
effective March 25, 2022 The Information Technology and Cybersecurity Committee (ITCC) provides oversight on
5 Ron Hose stepped down as member of the Corporate Governance Committee
effective August 26, 2022 the overall information technology and information security strategy of the Bank and its
6 Michael G. Regino was appointed as member of the Corporate Governance Committee alignment with the Bank’s business strategies and objectives.
7 Erramon I. Aboitiz was appointed as regular member (from alternate member)
effective November 25, 2022
CORPORATE
GOVERNANCE
Given the evolving trends in IT and cybersecurity threats, the Committee also aims to Market Risk Committee
pioneer the advancement of cybersecurity practices in the local banking industry. The Market Risk Committee reviews the risk management policies and practices relating
to market risk, interest rate risk in the banking book (IRRBB), and liquidity risk.
No. of
No. of meetings
Name meetings % of attendance The Committee reviews the broad business strategies and policies for managing the
attended
held1 market risk of the trading book, IRRBB, and liquidity risk including funding strategy and
Justo A. Ortiz2 12 12 100.00 corresponding risk tolerance aligned with the strategic direction of the Bank.

No. of
No. of % of
Aurora C. Ignacio3 3 3 100.00 Name meetings
80 meetings held1 attendance
attended
Ana Maria A. Delgado 12 12 100.00
Josiah L. Go2 12 12 100.00
Ron Hose 4
8 8 100.00
Erramon I. Aboitiz 12 12 100.00
Henry Rhoel R. Aguda5 10 12 83.33
1 Represents no. of ITCC meetings held in 2022 and during the incumbency of the director,
as the case may be Francisco E. Lim 12 12 100.00
2 ITCC is chaired by Justo A. Ortiz
3 Aurora C. Ignacio stepped down as member of the ITCC effective March 25, 2022 Roberto G. Manabat 12 12 100.00
4 Ron Hose stepped down as member of the ITCC effective August 26, 2022
5 Henry Rhoel R. Aguda is designated as non-voting member of the ITCC Manuel D. Escueta 12 12 100.00
6 Michael G. Regino was appointed as member of the ITCC effective March 25, 2022
7 Ricardo L. Moldez was appointed as alternate member of the ITCC effective March 25, 2022
Ron Hose4 8 8 100.00
Ricardo L. Moldez 5
9 9 100.00
1 Represents no. of Market Risk Committee meetings held in 2022 and during the incumbency
of the director, as the case may be
2 Management Risk Committee is chaired by Josiah L. Go, an independent director
3 Michael G. Regino was appointed as alternate member of the Market Risk Committee effective
March 25, 2022
4 Ron Hose stepped down as member of the Market Risk Committee effective August 26, 2022
5 Ricardo L. Moldez was appointed as member of the Market Risk Committee effective March 25, 2022
Operational Risk Management Committee Related Party Transactions Committee
The Operational Risk Management Committee (ORMC) reviews risk management policies The Related Party Transactions Committee evaluates all material related party transactions
and practices relating to operational risk. (RPTs) to ensure that these are not undertaken on less favorable economic terms
to the Bank (e.g. price, commissions, interest rates, fees, tenor, collateral requirement)
The Committee ensures that the Bank is aware of and understands the nature compared to similar transactions with non-related parties and that no corporate
and complexity of the major operational risks in the Bank’s business and operating or business resources of the Bank are misappropriated or misapplied, and determines
environment, including risks arising from transactions or relationships with clients, any potential reputational risk issues that may arise as a result of or in connection
third parties, vendors, suppliers, outsourced service providers, and environmental with the transactions.
and social related risks.
The Committee assists the Board in ensuring that RPTs are undertaken only on an
arm’s length basis in compliance with the Bank’s RPT Policy and applicable policies
81
No. of
No. of % of
Name meetings and guidelines of the BSP and SEC.
attended
Ron Hose2 8 8 100.00 No. of

No. of % of
Name2 meetings
Justo A. Ortiz 13 13 100.00 meetings held1 attendance
attended
Juan Alejandro A. Aboitiz3 4 4 100.00 Francisco Ed. Lim 12 12 100.00
Michael G. Regino 4
4 4 100.00 Roberto G. Manabat 12 12 100.00

Francisco E. Lim 13 13 100.00 Manuel D. Escueta 12 12 100.00
Manuel D. Escueta 13 13 100.00 1 Represents no. of Related Party Transactions Committee meetings held in 2022 and during
the incumbency of the director, as the case may be
Roberto G. Manabat 13 13 100.00 2 The Related Party Transactions Committee is composed entirely of independent directors,
including the Chairman, in compliance with the ACGS
Ricardo L. Moldez 5
10 10 100.00
Risk Management Committee
Samel A. Aboitiz6 8 9 88.89 The Risk Management Committee oversees the enterprise risk management framework
and ensures that there is periodic review of the effectiveness of risk management systems
Josiah L. Go7 5 5 100.00
and recovery plans.
1 Represents no. of ORMC meetings held in 2022 and during the incumbency of the director,
as the case may be
2 Ron Hose stepped down as Chairman of the ORMC effective August 26, 2022
3 Juan Alejandro A. Aboitiz stepped down as member of the ORMC effective April 22, 2022
4 Michael G. Regino was appointed as alternate member of the ORMC effective March 25, 2022
5 Ricardo L. Moldez was appointed as member of the ORMC effective March 25, 2022
6 Samel A. Aboitiz was appointed as member of the ORMC effective April 22, 2022
7 Josiah L. Go, an independent director, was appointed as Chairman of the ORMC
effective September 6, 2022
CORPORATE
GOVERNANCE
The Committee also ensures that the current and emerging risk exposures are consistent No. of No. of
% of
with the Bank’s strategic direction and overall risk appetite. Name meetings meetings held1
attendance
attended
No. of Alan Jay C. Avila3 1 1 100.00

No. of % of
Name meetings
meetings held1 attendance Eric S. Lustre4
attended 6 6 100.00
Manuel D. Escueta 2
12 12 100.00 Irma M. Lasquesty5 5 5 100.00
Erramon I. Aboitiz 12 12 100.00 1 Represents no. of Trust Committee meetings held in 2022 and during the incumbency of the director,
as the case may be
2 Trust Committee is chaired by Erramon I. Aboitiz
Justo A. Ortiz 12 12 100.00 3 Alan Jay C. Avila stepped down as member of the Trust Committee effective January 28, 2022
82 4 Eric S. Lustre was appointed as member of the Trust Committee effective January 28, 2022
Michael G. Regino 3
3 3 100.00 5 Irma M. Lasquesty was appointed as member of the Trust Committee effective July 21, 2022
Roberto G. Manabat 12 12 100.00 MANAGEMENT COMMITTEES

Management committees are created to perform specific tasks not covered by the
Josiah L. Go 12 12 100.00
Board and its committees. Unlike Board committees, management committees
Ron Hose4 8 8 100.00 have a greater role in the day-to-day activities of the organization due to the nature
of the functional roles of its members, who are the key officers of the Bank.
Ricardo L. Moldez 5
9 9 100.00
1 Represents no. of Risk Management Committee meetings held in 2022 and during the incumbency At the time of writing, we have fifteen (15) management committees, all of which are fully
of the director, as the case may be
2 Risk Management Committee is chaired by Manuel D. Escueta, an independent director functional and operating:
3 Michael G. Regino was appointed as alternate member of the Risk Management Committee
4 Ron Hose stepped down as member of the Risk Management Committee effective August 26, 2022
5 Ricardo L. Moldez was appointed as member of the Risk Management Committee Committee Mandate
Trust Committee Anti-Money Proposes to the Board, through the Corporate Governance
The Trust Committee ensures that fiduciary activities are conducted in accordance Laundering Committee, and monitors measures to actively prevent and
Committee address money laundering and terrorist financing risks
with applicable laws, rules and regulations, and prudent practices. In line with this,
the Committee oversees the effective implementation of the risk management framework
and internal control system relative to the fiduciary activities. Architecture Oversees the overall enterprise architecture of the Bank and its
Steering Committee alignment with the Bank’s business strategies and objectives
No. of No. of Exercises oversight on the assessment of the adequacy and

% of Asset-Liability
Name meetings meetings held1 implementation of specific policies and procedures relating to
attendance Committee
attended market and liquidity risks
Justo A. Ortiz 12 12 100.00 Reviews matters for endorsement to the Executive Committee,
Risk Management Committee, and the Board to ensure adequate
Edwin R. Bautista 12 Credit Committee
12 100.00 senior management oversight in the management and monitoring
of the Bank’s credit and credit risk-taking activities
Michael G. Regino 12 12 100.00
Performance Assessment
Committee Mandate
The Bank strengthened its performance management system to purposely integrate the
Balanced Scorecard (BSc) framework in its effort to strongly align the Bank’s strategies
Crimes
Investigates and determines if a criminal case should be filed and/ and goals in the key areas of Financial Performance, Risk, Operations, Stakeholders,
Investigations
or maintained by the Bank against an employee or a third person People, and Strategy Execution. More so, the Bank has established the 2020 Lines
Committee
of Business BSc as a foundation to effectively implement the Bankwide scorecard
Reviews and approves recommendations for ensuring that the to the individual business level and to ensure a more objective performance assessment
Data Governance
Bank generates and timely submits accurate reports for use in of all employees, including senior management. Its performance management system,
Management
strategic decisions and regulatory reporting, in accordance with also known as MyPerformance, will drive this as it promotes the principles of a multi-rater
Committee
accounting and regulatory standards
approach, rewards for results, self-driven high-performance, and self-driven career.
In support of the Bank’s accelerated digital transformation, performance assessment
83
Discipline Reviews the cases endorsed by the appropriate fact-finding body
Committee and decides on the administrative cases in a timely manner includes periodic evaluation of digital initiatives during business reviews.
Employee Loans Evaluates employee loan applications to ensure that the same is Orientation and Continuing Education
Committee compliant with the Board-approved program and BSP policies UnionBank University remains to be the main channel for continuous learning
and development of employees, including the senior management of the Bank.
Insourcing Compliance courses are available throughout the year in Microsoft Office 365 apps
Conducts annual review of the insourced services of the Bank
Committee such as Sway and SharePoint to provide a digital, easily accessible learning experience

for all employees. As these platforms are embedded in the corporate emails,
Provides guidance on strategic decisions consistent with the Bank executives can also easily and conveniently access them.
Management
Bank’s purpose, brand, and core values towards the attainment of
Committee
long-term goals
Apart from these courses, members of the senior management team continually learn by
participating in the quarterly learning sessions for executives, the Leaders’ Learning
Sets policies that aim to develop, strengthen, and sustain
Personnel Circle (LLC), where local and global thought leaders are invited to share their expertise
employee engagement, and ensures leadership succession at the
Committee
executive level and views on emerging topics such as the future of banking and financial services,
leading-edge financial and digital technologies, and leadership and management
Reputation disruptions and evolution.
Ensures that all reputation management efforts are aligned, and
Management
messages communicated are consistent for all stakeholders
Committee
More so, the annual Strategic Planning session with the Board of Directors is a great
learning opportunity for the Bank’s leaders to keep themselves abreast of the trends
Responsible for the general management and administration
Retirement and best practices of banking and financial technology, digital strategy, platforms,
of the UnionBank Retirement Plan and Retirement Fund for its
Committee
employees and emerging technology applications.
Related Party Retirement and Succession Management

Reviews and endorses related party transactions prior to
Transaction Review The Bank recognizes that succession is key in building a Bank of enduring greatness
presentation, endorsement, or notation by the RPT Committee
Committee
and that it is an integral piece in driving strategy. Therefore, succession planning
and management is an established exercise in the Bank. Having the right number
Resiliency Steering Provides the strategic direction for the Bank’s Business Continuity
Committee Management System (BCMS) Framework and good mix of key talents with the required capabilities is sustained even
during employee retirements, movements, and other talent decisions to ultimately,
prepare the Bank to become a future-ready organization.
CORPORATE
GOVERNANCE
The Bank through the conduct of the regular talent reviews identifies successors We have been working closely with various regulatory bodies to maintain the safety
to critical positions to ensure leadership continuity. Potential successors are assessed and soundness of the banking system. Our Compliance Office works very closely with
in terms of expertise and performance, leadership capability, culture alignment, the Association of Bank Compliance Officers (ABCOMP), Bankers’ Association of the
and technology adoption. We cast a wider net of leadership pool through the management Philippines (BAP) and Bankers’ Institute of the Philippines (BAIPhil), organizations of
training program, identification of high-potential talents, leadership development like-minded finance and banking professionals whose mission is to professionalize the
and external talent mapping. compliance system in the banking industry and develop constructive working relationship
with regulators, including the Bangko Sentral ng Pilipinas (BSP), Anti-Money Laundering
The Bank’s deliberate and systematic effort to ensure leadership continuity covers Council (AMLC), Securities and Exchange Commission (SEC), to name a few.
retirement among the scenarios that can affect its business landscape. Under the
Bank’s Retirement Policy, the normal retirement age is at 60 years with a provision The CCGO is composed of five (5) main units, Anti-Money Laundering (AML) Policy,
84 for late retirement beyond age 60 years subject to the Board of Directors’ approval. Compliance Testing, Corporate Governance, Investment Surveillance and Product
Compliance, the latter where the designated compliance officers are given responsibilities
Remuneration and provide advice according to products – Treasury, Credit, Trust, Private Banking and
The Corporate Governance Committee oversees the implementation of the programs Finance, IT, Operations and Subsidiaries. The Compliance Testing function, as mandated
for the salaries and benefits of Senior Management. by the BSP, evaluates the adequacy of the Bank’s compliance program and procedures
and that these continue to be appropriate in addressing the identified compliance risks.
The compensation policies and procedures for Senior Management follow a market-based The CCGO and Internal Audit Groups work closely in determining the scope of their
compensation structure, anchored on the principles of meritocracy or pay-for-performance. reviews to achieve sufficient and non-duplication of coverage of the businesses.
COMPLIANCE INTERNAL AUDIT

Imagine a classroom without rules, a world without laws, and a banking system without
regulations. It would surely result in chaos, disorder, and confusion.
At UnionBank, we view compliance to regulations not only as an obligation, but as way of

AUDIT COMMITTEE
doing business. We have established strong compliance programs and policies designed
to specifically identify and mitigate risks that may erode the franchise value of UnionBank
such as risks of legal or regulatory sanctions, material financial loss, or loss to reputation.
Through our compliance efforts, we seek to do business in a trusted environment in which
our customers can transact with confidence. Chief Audit Executive External Audit Group
Our compliance function, the Compliance and Corporate Governance Office (CCGO),
facilitates the effective management of compliance risk and ensures that our businesses
and affairs are conducted within the boundaries of laws, rules, and regulations.
Internal Audit Group
The Board has appointed the Chief Compliance and Corporate Governance Officer with
the rank of Senior Vice President (SVP) to reinforce adequate stature and authority
of compliance in the organization. She oversees the overall design and effective The Internal Audit Group (IAG or the Group) is entirely independent of all other
implementation of the compliance risk management system and supervises our organization units of the Bank. It operates under the direct control of the Audit Committee
compliance function. She serves on a full-time basis and functionally reports to the and is given an appropriate standing within the Bank to be free from bias and interference.
Corporate Governance Committee. IAG is headed by the Chief Audit Executive (CAE), an SVP. The Group is tasked to report on
the Bank’s processes, systems, operating units and activities and their performance towards GOVERNANCE POLICIES
the attainment of corporate objectives, primarily by ensuring that established organizational
controls are designed appropriately and are operating effectively. IAG conducts assurance Corporate Governance Confirmation Statement
and advisory engagements based on a forward-looking audit plan that is consistent Good governance is woven into our corporate fabric and permeates our culture. As we
with the Bank’s strategic plans and priorities. The Group performs risk assessment using strive to achieve governance excellence in every aspect of our business and operations,
a process family level structure so that the audit engagements will be thematically coherent. we have complied substantially with prevailing standards and best practices in governance
And when needed, IAG avails of third-party services to ensure coverage of all risk areas. as of December 31, 2022.
Additionally, when called for by the Bank’s Code of Conduct, Internal Audit also conducts
investigations in aid of administrative proceedings. The details of our compliance with the Code of Corporate Governance for Publicly
Listed Companies can be found in our Integrated Annual Corporate Governance Report,
As the Bank continuously evolves towards its digitization strategy, IAG has undertaken published on our company website.
85
initiatives to adapt and expand its processes, and to provide relevant and timely
recommendations to the Bank. The Group has implemented a continuous auditing Our intensive efforts on this front paid off. UnionBank achieved three-golden arrow
process that aims to provide assurance on high-risk, high-volume areas/process, recognition for its 2022 ASEAN Corporate Governance Scorecard (ACGS) performance.
on a real-time, or near real-time basis. In the prior year, the Bank garnered two arrows during the ASEAN Corporate Governance
Scorecard Arrow Awards Night held at the Sheraton Manila Hotel.
IAG adopts the GRC system which integrates the operational risk management across
the Parent Bank. IAG also uses it as an audit management system to ensure the quality The Golden Arrow Award recognizes the country’s top publicly listed companies in

and completeness of documentation across its different engagements and to serve corporate governance that have “exhibited observable conformance with the Philippine
as an audit management information system. IAG also implemented offsite reviews, Code of Corporate Governance and internationally recommended corporate governance
leveraging on the document management system of the Bank. practices as espoused by the ACGS.”
The Parent Audit Committee, through the Parent CAE, continuously oversees Corporate Governance Manual
the internal audit function of its subsidiaries. The Group Internal Audit function Our actions are guided by the Manual on Corporate Governance, which provides an
was created to support the governance process over internal audit functions overview of how we are governed and how we operate.
and to promote quality and consistency across the Group.
We regularly review and update the provisions of the Manual to address regulatory
EXTERNAL AUDIT developments in the industry. We submit the Manual to the Securities and Exchange
The External Auditors on the other hand examine the Bank’s financial statements and Commission (SEC) whenever there are significant changes or amendments.
express an opinion on whether the numbers reported in the Bank’s Balance Sheet,
Income Statement, and other financial statements are fairly presented in accordance Our Manual is also publicly available on the company website for easy reference of our
with financial reporting standards. The Audit Committee recommends the appointment, shareholders, regulators, investors and other stakeholders.
re-appointment, and change of external auditors. External audit services are currently
provided to the Bank by SGV & Co (EY Philippines). Group Governance Policy
We have established a policy for subsidiary governance designed to ensure that the
On behalf of the Board of Directors, the Audit Committee provides oversight of the Bank’s Parent Bank performs its oversight function over its subsidiaries in compliance with
financial reporting and the internal and external audit function. It is also responsible regulatory mandates and to facilitate alignment of corporate culture across the entire
for setting up the Internal Audit Group and for the appointment of the CAE and the banking group.
Independent External Auditor who both report to the Audit Committee. Moreover, the
Audit Committee is mandated to monitor and evaluate the adequacy and effectiveness of
the Bank’s internal control system.
CORPORATE
GOVERNANCE
Our Group Governance Policy provides general guidance to the members of the Board of A hotline was set up to warrant the anonymity and confidentiality of the reports whose
UnionBank in the performance of its oversight function over the subsidiaries and defines merits will be evaluated by an investigating body, escalated to the Discipline Committee
the roles and reportorial duties of the directors and/or officers of the Parent Bank and its or the Compliance and Corporate Governance Office, as needed, and accorded the fitting
subsidiaries. course of action.
Code of Conduct Anti-bribery and anti-corruption

The UnionBank Code of Conduct supports our unique employee culture. UnionBankers We conduct our business transactions in an ethical and honest manner to support the
demonstrate the attributes of forward thinking, innovative, open and agile which are integrity of the financial system. We take zero-tolerance stance to bribery and corruption
helping UnionBank to power the future of banking. and are committed to acting professionally, fairly and with integrity in all business dealings
and relationships wherever we operate.
86 What is unique about UnionBank is how we:
Employees are prohibited from offering, paying, receiving, promising, or authorizing any
Live our Purpose to ‘Co-create innovations for a better world’; gift or payment to any person directly or indirectly through or to a third party for the
Constantly seek opportunities for growth, as an institution and as professionals; purpose of (i.e. in exchange for): (1) causing the person to act or fail to act in violation
Treat people with respect; of a legal duty; (2) causing the person to abuse or misuse their position; (3) securing an
Collaborate with great people working in teams; and are improper advantage, contract or concession for the organization or any other party.
Committed to a winning culture.
Creditors’ Rights
We enable the success of our stakeholders – our clients, business colleagues, suppliers, As a universal bank, deposit-taking is one of our principal banking activities.
shareholders, communities where we serve each other. We always strive to be the best We are committed to protect our depositors who serve as our main creditors.
in what we do. Every product, service, or endeavor at the workplace is nurtured by the
UnionBankers’ faithful adherence and dedication to our Values of Integrity, Magis, and We ensure that our depositors have a reasonable understanding of the financial products
Ubuntu, nurtured by our passion to provide competent, effective and delightful service. and services which they acquire or avail of. Through our verified communication channels
in traditional and digital platforms, we provide information that accurately represents
Thus, the Code of Conduct embodies the principles for the personal and professional the nature and structure of the product or service, its terms and conditions, as well as its
conduct of all UnionBankers, with practices founded on public trust and confidence. fundamental benefits and risks.
It is founded on the institution’s unwavering commitment to the highest standards of
responsible and ethical business practice, anchored on our Purpose, Values and our Furthermore, we support the Philippine Deposit Insurance Coverage (PDIC) in its mandate
Core Competence of banking. to protect depositors by providing deposit insurance coverage for the depositing public
and help promote financial stability. We advertise PDIC’s deposit insurance protection
Whistleblowing mechanism in appropriate and accurate manner by incorporating the official PDIC Insurance Statement
Our Whistleblower Policy is intended to assist individuals to whistle blow on malpractices (Deposits are insured by PDIC up to P500,000 per depositor) on relevant advertisements
which they have discovered and to provide protection to the whistleblower. We ensure and official communications.
that such concerns are treated seriously, appropriately, and with utmost confidentiality.
Through these efforts, we ensure that our depositors are treated fairly, honestly,
Reportable incidents include unlawful activity, fraud, corruption, violation of policies and and professionally at all stages of our relationship.
agreements including the Bank’s Code of Conduct, to name a few.
Supplier Selection and Accreditation In compliance with BSP regulations, the Bank ensures that adequate reserves are in place
We uphold the principles of truthfulness, fairness, and respect in our dealings with suppliers. for future bank expansion requirements. The foregoing cash dividend declaration was made
We continue to build and maintain good relations by honoring agreements which are within the BSP’s allowable limit for dividends.
entered in conformity with the law and public policy.
Consumer Protection
All purchases of equipment, supplies and services for the Bank are made based on quality, The Board and Senior Management are responsible for developing the Bank’s consumer
utility and price offered by the vendors. While the Bank may actively negotiate for favorable protection strategy and establishing an effective oversight of the Bank’s consumer
terms with its suppliers, it does not knowingly mislead them with respect to competitors’ protection programs.
price and terms, its plans for future purchases, or other particulars of their transactions.
The Bank does not use its vantage position as customer to impose unfair conditions The Board is primarily responsible for approving and overseeing the implementation
that could not have been obtained by negotiations in good faith or commit acts of the Bank’s Consumer Protection Risk Management System (CPRMS), while the
87
or omissions that unjustly breach contractual obligations. Senior Management ensures that the Bank’s practices are aligned with the approved
Consumer Protection Policies and Risk Management System and relevant statements
We implement a strict and fair Supplier Accreditation Policy for all suppliers and outsourced are consistently displayed throughout the Bank’s place of business particularly across
service providers where submission of comprehensive information sheet and applicable all business units that deal directly with consumers.
documentary requirements are mandatory. The suppliers are then subjected to an initial
and ongoing assessment based on applicable criteria, including the company’s status Risk assessment strategies are included as part of the Consumer Assistance Policy
in its respective industry, liquidity evidenced by its business viability, and free from any and Procedure (CAPP) to analyze the data of complaints/requests, its causes, effects to

major lawsuit or government action, among others. other products/services, and corrective actions including its costs as well as resources.
All monitored complaints, regardless of nature or type, shall be centralized to the
Dividend Policy Consumer Affairs Group.
The Board of Directors of the Bank shall determine and declare dividends each year
amounting to approximately twenty-five percent (25%) of the prior year’s net income after The Consumer Affairs Group (CAG) shall analyze complaints data, root causes and
tax, payable out of the Bank’s unrestricted retained earnings, subject to prior approval by trends of complaints; monitor resolution and effectiveness of actions taken; recommend
the relevant regulatory authorities as may be required. action plans to prevent recurrence and mitigate identified operational or reputational risks;
analyse the recommended action plans in the Complaints Report to Senior Management.
In accordance with the Bank’s By-Laws, the Board of Directors shall determine and declare CAG reports and escalates issues and concerns to Senior Management and to the
dividends each year out of prior year’s net income after tax, payable out of the Bank’s Operational Risk Management Committee on a monthly basis about persistent
available unrestricted retained earnings, subject to prior approval by the relevant authorities complaints against the Bank or UnionBankers.
as may be required.
The CAG is also responsible for the monitoring and oversight of the Bank’s Customer
The following is a summary of the dividends declared and distributed by the Bank in 2022. Experience in compliance with BSP Circulars 857 and 1048 on Financial Consumer
Protection and for ensuring that the consumer assistance management process
Date of is necessary, updated, and conforms to the internal control framework of the Bank
Date of Date of Date of Dividend Outstanding Total
BSP
Declaration Record Approval Payment per Share Shares Amount and complied with by all affected units.
January February
N/A March 2, 2022 P2.80 1,524,918,059 P4,269,770,565.20
28, 2022 14, 2022
CORPORATE
GOVERNANCE
The Bank has in place a Related Party Transaction (RPT) Policy approved by the
Board of Directors and strictly implemented across all covered transactions in the Bank.
CONSUMER AFFAIRS GROUP (CAG) The RPT guidelines ensure fairness and transparency, definition of related party
transactions (RPTs) which cover a wider scope than DOSRI and encompass a broader
spectrum of transactions (i.e. not limited to credit exposures), and the appropriate
handling and monitoring of RPTs. These transactions are made and entered into
substantially on the same terms and conditions as transactions with other individuals
Quality and businesses of comparable risks. Hence, the transactions likewise go through the
Quality Quality
Assurance Officer same vetting and monitoring process applicable to ordinary or unrelated party
Assurance Officer Assurance Officer
(Customer
(Branches) (HQ Units) transactions as set forth in the Bank’s internal guidelines or policies.
88 Engagement Group)
The members of the Board, stockholders and management are obliged to disclose any
financial interest in any transaction or matter affecting the Bank, especially material
facts pertaining to the transaction including the terms and conditions of the proposed
transaction and deviations, if any. Likewise, the Bank officers or employees who are
Consumer Consumer Consumer related to the transacting party are required to abstain from the discussion, approval,
Assistance Assistance Assistance and management of the transaction.
Officers Officers Officers
The Related Party Transactions Committee or RPT Committee is responsible for assisting
the Board in fulfilling its governance responsibilities on RPTs, as specified on our Policy.
The table below shows the Full Year 2022 summary of customer complaints statistics The table below shows the summary of material RPTs. In 2022, all related party
broken down according to product type. transactions were conducted fairly and at arm’s length basis.
Product type Count % Terms & Amount / Outstanding

Relationship Nature
Conditions Contract Price Amount
E-Money 3,750 2
Credit Facilities Standard terms
Other Products and Services 15,199 10 DOSRI 2.49 billion .30 billion
and others and conditions
Credit Card 29,972 19
Annual renewal;
Deposit 30,013 19 Credit Facilities
Affiliate Standard terms 6.93 billion .414 billion
and others
and conditions
Customer Service 37,316 24
Remittance 41,642 26 Credit Facilities Standard terms

Subsidiary 14.483 billion .005 billion
157,892 100
Other
Credit Facilities Standard terms
Related Party Transactions Related 2.89 billion 2.322 billion
It is the policy of the Bank to ensure that all transactions entered into by the Bank with its Parties
related parties are undertaken only on an arm’s length basis and subjected to appropriate Total 24.79 billion 3.04 billion
oversight of the Board and relevant committees so as to protect the Bank from conflicts
of interest and abusive RPTs that may arise.
CORPORATE SOCIAL RESPONSIBILITY Project Per@parasyon
UnionBank’s corporate social responsibility program is aligned with the Bank’s overall This is the Bank’s advocacy on financial literacy and practical wealth
digital transformation strategy and is guided by our policies on sustainability and management for public school teachers.
corporate social responsibility (CSR). • Project Pink
A breast cancer awareness program for teaching and non-teaching staff,
We see our CSR programs as contributors to the global movement on providing solutions that provides an avenue for correct information on the prevention and early
to the Sustainable Development Goals of the United Nations. Our CSR programs will detection of breast cancer.
focus on five goals: SDG 1 (No Poverty), SDG 4 (Quality Education), SDG 8 (Decent Work • Project #BetterMe
and Economic Growth), SDG 13 (Climate Action, and SDG 9 (Industry, Innovation, and Mental wellness program for our education frontliners, in partnership with
Infrastructure). Most importantly, we see our CSR initiatives as incubators of innovation MentalHealthPH, that enables the former to care for their mental wellbeing.
where we create a positive impact on the community. Continued partnering with the Development Academy of the Philippines (DAP)
89
to develop webinars and learning sessions on digital transformation designed to
In 2022, our CSR connected its thrust with the overall sustainability mission to train a new batch of government executives and local government officials.
“Tech Up” the Philippines. The Bank believes that it has a vital role and responsibility for Partnered with Pasig City in hosting the 3rd global Climathon, which allowed the
building strong and resilient communities by leveraging on the successes of UnionBank bank to support participants in designing solutions to the wicked problems of
in innovation and digital transformation. The Bank focused in the areas of e-commerce, our society. In 2022, UnionBank awarded innovation prizes to the most innovative
education tech, and climate tech (community wellbeing and environment). solution on key socio-economic and environmental problems of the city.

Driven by this, we pursued strategic CSR partnerships with organizations and institutions Furthermore, GoBeyond Communities remains to be the Bank’s main corporate social
that align with our advocacy on innovation, which is geared towards bringing to life our responsibility intervention. It is an employee engagement program where employees
Group Purpose of “co-creating innovations for a better world.” can promote their personal advocacies by conceptualizing, developing, and
implementing community-enriching programs, with funding provided by the Bank.
We achieved more milestones in 2022, namely: In 2022, the Bank’s employees had recorded 2,428 volunteers, 83,162 beneficiaries,
reaching a total of 1,326 communities. In implementing its People Tech initiatives,
CitySavings’ Teacher Care Programs the Bank aims to help employees, partners, and other stakeholders develop digital literacy
CitySavings is committed to providing capability-building opportunities and and build the necessary skills to prepare them for the future.
enabling educators to teach and touch the lives of learners nationwide. In 2022,
CitySavings teacher training capabilities, and learning resources to promote The Bank is leveraging on its in-house centers of excellence in Data Science and
financial education, build disaster resilient communities, and advocate health and Artificial Intelligence, as well as its Xcellerator program to equip internal and external
wellness were deployed. They were able to help 580 beneficiary schools, and talents with emerging capabilities. The Bank’s Xcellerator program has been making
Department of Education division and regional offices nationwide. There were an impact through developing digital talents, with the aim of building up the capabilities
4,500 DepEd attendees nationwide on financial, health, and wellness programs. of Filipino workers and making them tech-ready for emergent digital landscapes.
CitySavings’ CSR programs last year included: UB Xcellerator assists educational institutions by enabling education partners to
increase talents that will bring about innovations and game-changing products.
• Brigada Eskwela
This DepEd core program is actively supported by CitySavings to UB Xcellerator has provided courses and educational programs on digital skills
complement DepEd’s Basic Education-Learning Continuity Plan. Various such as blockchain, data science, and artificial intelligence to 16,209 individuals
stakeholder engagement programs that focus on the health and safety of as of December 31, 2022. As of the same date, UB Xcellerator offered 136 modules
the school community for the opening of classes are constantly developed to the public for free.
and needs per region, per division are targeted specifically to ensure quality
education is provided to all.
CORPORATE
GOVERNANCE
RIGHTS OF SHAREHOLDERS Before the ASM

Our stockholders are the ultimate owners of our business and serves as the highest Notices of the ASM and the Definitive Information Statement were duly served by
authority in our governance structure. They enjoy the benefits of strong corporate providing the Quick Response (QR) Code to all stockholders of the Bank as of record date
governance, which we believe is critical not only for the success of the organization of March 11, 2022, by e-mail for those stockholders who have given their e-mail addresses,
but also in advancing the interests of our shareholders. by way of disclosure to The Philippine Stock Exchange, Inc. and Philippine Dealing and
Exchange Corporation on March 28, 2022, and posted on the Bank’s website.
We treat all shareholders fairly and equitably, and also recognize, protect and facilitate
the exercise of their rights. Shareholders’ rights relate to the following, among others: Pursuant to SEC Notice dated February 16, 2022, referring to the alternative distribution
(a) pre-emptive rights; (b) right to receive dividends; (c) right to propose the holding of the notice of stockholders meeting, the notice was published in business sections of
of meetings and to include agenda items ahead of the scheduled Annual and Special The Philippine Daily Inquirer and The Philippine Star, in print and online format,
90 Shareholders’ Meeting; (d) right to nominate candidates to the Board; (e) voting rights; on March 30 and 31, 2022.
(f) right to information; and (g) power of inspection.
During the ASM
The basic rights of our shareholders are disclosed in the Manual on Corporate Governance The Vice Chairman, acting on behalf the Chairman of the Board, presided and called
which is posted on our company website. the ASM to order. The Corporate Secretary recorded the minutes of the proceedings.
The Vice Chairman thanked the stockholders who attended the meeting via online
Shareholders’ meeting streaming, who have voted in absentia through the Bank’s online voting portal,
The meeting of the shareholders serves as a venue for them to express opinions, and who submitted their proxy forms appointing the Chairman as proxy.
raise questions, and pass resolutions. We have two (2) types of meeting as stipulated
in our By-laws. At the request of the Vice Chairman, the Corporate Secretary presented the rules
of conduct and procedures that govern the ASM. The Corporate Secretary explained
The annual meeting of the stockholders is held on the fourth Friday of the month of that the stockholders have been notified of the rules of conduct and proceedings of the
April of each year, if not a legal holiday, otherwise the next business day following. ASM as stated in the Explanation of Agenda items attached to the Notice of Meeting,
which forms part of the Definitive Information Statement.
The special meeting of the stockholders may be called for any purpose at any time by the
Chairman of the Board, by the President, or by the holders of not less than one-third (1/3) In addition, the Bank engaged Sycip Gorres Velayo & Co. to conduct a third-party
of the subscribed capital stock of the corporation. validation of the votes for the meeting.
All meetings of the stockholders shall be held at the principal office of the organization, Shareholders voted on the following agenda: (a) approval of the Minutes of the
or at any place designated by the Board in the city or municipality where the principal Bank’s stockholders’ meetings held on April 23, 2021 and August 11, 2021; (b) approval and
office of the corporation is located. ratification of past actions of the Board of Directors, Board Committees, and Management,
including all significant related party transactions; (c) appointment of the External Audit
In accordance with Sections 23 and 57 of the Revised Corporation Code which allow for the year 2022; and (d) election of directors.
voting through remote communication or in absentia, our 2022 annual stockholders’
meeting (ASM) was conducted virtually by secure videoconference facility at Shareholders are allowed to elect directors individually. Each resolution deals with only
https://asm.unionbankph.com and facilitated at the 28th Floor, UnionBank Plaza, one item; there is no bundling of several items into the same resolution.
Meralco Ave. cor. Onyx St., Ortigas Center, Pasig City last April 22, 2022.
The shareholders were encouraged to express their opinions and raise any questions,
Title Date
either on the agenda or any other questions related to the business and operations
of the Bank. During the open forum, the Vice Chairman, upon advice by the meeting Union Bank of the Philippines Completes P40 Billion Stock Rights
May 17, 2022
Offering
moderator that there were a few questions received from stockholders sent via email
UnionBank announces first-ever digital peso bond offering May 23, 2022
thru the Office of the Corporate Secretary, answered all the aforementioned questions,
all of which were recorded in the Minutes of the meeting. UnionBank raises P11 billion in maiden digital peso bonds June 02, 2022
UBP posts P6.1. billion net income in 1H2022 July 29, 2022
Stockholders are also invited to submit to the Office of the Corporate Secretary via email
any other questions relative to the agenda items presented at the live webcast. The Bank’s UnionBank completes the acquisition of Citigroup’s consumer
August 1, 2022
answers will be sent to the stockholders’ e-mail addresses. banking business in the Philippines
91
UnionBank 9M2022 Net Income at P10.1 Billion November 2, 2022
After the ASM
UnionBank raised $358 million in syndicated loan facility November 25, 2022
The results of the meeting were disclosed to the PSE Edge and on the Bank’s website
on April 25, 2022. The Minutes contained the voting results (which included the approving,
dissenting, and abstaining votes) for all resolutions/agenda items, questions raised by INVESTOR RELATIONS
shareholders and answers given by the Vice Chairman, and attendance of the Board UnionBank engages the investing public and potential investors through an
members and senior officers. effective Investor Relations (IR) Program. The investing community is updated
of the Bank’s performance, strategies, and management actions towards achieving

DISCLOSURE AND TRANSPARENCY a true and fair valuation of the Bank. As a publicly listed company, IR abides by the
Transparency is one of the core principles of our governance framework. To ensure disclosure and reporting requirements of the PSE, SEC, other relevant regulations.
better protection of the rights of our shareholders and other stakeholders, full disclosure
of our financial performance, results of operations, governance policies, programs and UnionBank’s Investor Relations Office (IRO) shall promote transparency, guided by the
procedures, and other developments in the organization, is imperative. following principles:
Our company website is the primary source of corporate information, financial Observance of the highest ethical standards to uphold the best interest of all
performance, products and services, contact information, news and advisories, and latest stakeholders;
developments pertaining to UnionBank. Adherence to principles of good corporate governance to align with best
practices;
We also release our annual and quarterly reports to convey our financial performance in a Conformance with PSE & SEC disclosure requirements and other relevant
comprehensive and accurate manner. The reports are also being disclosed in compliance regulations; and
with the reporting requirements of the SEC and PSE. Timely dissemination of material and accurate information to all stakeholders.
Press releases and media briefings are also being utilized to communicate important news Our IRO ensures that relevant information about the Bank’s activities and performance
and developments or information about our business. are communicated properly through: regulatory reports and disclosures, press releases,
annual stockholders’ meetings, annual reports, website, investor presentations, conference
calls, and other modes of communication.
Title Date
UBP Net Income up 9% to P12.6 Bn January 31, 2022
UBP 1Q2022 Net Income at P2.6 Bn April 25, 2022

TABLE OF
ORGANIZATION
As of March 2023
ERRAMON I. ABOITIZ
Chairman
BOARD OF DIRECTORS
CORPORATE SECRETARY
ATTY. J.V. BANAAG
CORPORATE INFORMATION RELATED PARTY

AUDIT TRUST TECHNOLOGY AND EXECUTIVE RISK MANAGEMENT MARKET RISK OPERATIONAL RISK
GOVERNANCE TRANSACTION COMMITTEE COMMITTEE MANAGEMENT
COMMITTEE COMMITTEE CYBERSECURITY COMMITTEE COMMITTEE
COMMITTEE
COMMITTEE COMMITTEE
COMPLIANCE & ENTERPRISE RELATED PARTY

INTERNAL AUDIT TRUST AND ACTING TRUST ANTI-MONEY DISCIPLINE CORPORATE ARCHITECTURE CREDIT CRIMES RESILIENCY
INVESTMENT OFFICER LAUNDERING TRANSACTION ENTERPRISE RISK MANAGEMENT
M.E. AMAHAN COMMITTEE GOVERNANCE STEERING COMMITTEE REVIEW COMMITTEE COMMITTEE INVESTIGATION STEERING
E.S. LUSTRE I.M. LASQUETY COMMITTEE J.B. TORRES E. WIRIADI COMMITTEE COMMITTEE
CONSUMER/SME CONSUMER CREDIT POLICY & FINANCIAL RISK & TREASURY, TRUST & OPERATIONAL RISK IT RISK
RISK - SECURED RISK - UNSECURED PORTFOLIO REVIEW PERFORMANCE SUBSIDIARIES RISK MANAGEMENT MANAGEMENT
R.R. SVENNINGSEN P.D. AJERO A.S.T. CHUA E.M. GREGORIO M.E.M. MARIANO M.T.S. DAGUISO G.A. TIRANTE
92 EDWIN R. BAUTISTA
President & CEO
REPUTATION EMPLOYEE LOANS RETIREMENT ASSET LIABILITY MANAGEMENT

DATA GOVERNANCE PERSONNEL COMMITTEE COMMITTEE COMMITTEE COMMITTEE
MANAGEMENT COMMITTEE COMMITTEE
COMMITTEE
INSOURCING
COMMITTEE
RETAIL BANKING CENTER/ COMMERCIAL CORPORATE TRANSACTION CUSTOMER EXPERIENCE TREASURY AND OFFICE OF THE CHIEF FINANCIAL TECHNOLOGY AND OPERATIONS HR, CSR AND
CONSUMER BANK EON GLOBAL MARKETS FINANCIAL OFFICER CONTROLLERSHIP DATA AND AI SUSTAINABILITY
BANCASSURANCE BANKING CENTER BANKING CENTER M. VARMA BANKING CENTER DIGITAL CHANNELS BANKING D.D. OMILA D.R. HARDOON
M.J.S. GONZALEZ R.F. ABASTILLAS A.A.S. FAJARDO R.G. DUARTE A.A. DELGADO J.L. SIA M.R. LOZANO F.B. ALBALATE M.S.E. RUBIO
CUSTOMER SEGMENT COMMERCIAL BANKING 1 CORPORATE BANKING CARDS AND CORPORATE MARKETING EON BANKING ASSET AND LIABILITY WHOLESALE CORPORATE BRANCH CHANNEL IT AND DATA SCIENCE HUMAN RESOURCE
GROUP 1 PERSONAL LOANS SOLUTIONS MANAGEMENT CREDIT REVIEW ACCOUNTING MANAGEMENT OPERATIONS GROUP LEGAL
K.I. PALATINO R.M. AZUA A.R.C. CUADRANTE C.G.N. RUBIO SOLUTIONS 1 OPERATIONS ATTY. J.V. BANAAG
E.B. FERNANDEZ V. KADIAN G.R. DARVIN M.P.B. URMATAM R.N. SEVIDAL E.A.G. OBLENA J.T. DATOR D.D. OMILA J.A.C. DELA CRUZ J.F. ESCASA
CORPORATE BANKING WEALTH AND CORPORATE PRODUCT FINTECH STRATEGY AND STRATEGIC INITIATIVES TECHNICAL SERVICES
BANCASSURANCE COMMERCIAL BANKING 2 AND BUSINESS CORPORATE PLANNING TAX & INSURANCE IT SERVICES DATA SCIENCE LEARNING AND SECURITY
M.J.S. GONZALEZ GROUP 2 BROKERAGE MANAGEMENT BUSINESS GROUP SPECIAL PROJECTS & SOLUTIONS GROUP SOLUTIONS 2 DEVELOPMENT MANAGEMENT
G.G. BAUSA M.C.T.S BERNAD T. CHAN D.N. VELASCO IV E.D.D. GO N.N. AL-HAMADAH DEVELOPMENT C.I. EÑANOSA M.M. TORMON D.D. OMILA D.D. OMILA
C.M.R. ALMONTE J.E.T. BOSIÑOS J.R. WOLF R.J.L. GALANG
ASSET-BACKED DATA ENGINEERING INFORMATION

REGIONAL BUSINESS COMMERCIAL BANKING 3 CORPORATE BANKING LENDING/CHIEF DIGITAL PRODUCTS PHYSICAL CHANNELS PORTFOLIO BUSINESS SERVICES MANAGEMENT BLOCKCHAIN AND CORPORATE AND ORGANIZATIONAL
GROUP 3 BUSINESS MANAGEMENT INFORMATION SYSTEM API BUSINESS DIGITAL OPERATIONS AND MACHINE SECURITY AND DATA
M.J.S. GONZALEZ M.O. CHAO CROSS-SELL OFFICER R.S. BATISAN M.D. DIMAPILIS LEARNING OPERATIONS DEVELOPMENT PRIVACY OFFICE
A.G. MACATANGAY A.S.T. CORRO R.G. DUARTE M.I.B. RECTO D.J.B. MATRIANO C.A.B. CASAS M.P. MAGBANUA T.M.T. CALDERON
D.R. HARDOON J.P.G. RUFO
REMEDIAL
COMMERCIAL BANKING 4 CORPORATE BANKING MORTGAGE MERCHANT ACQUIRING BOTS AND GLOBAL MARKETS MANAGEMENT RETAIL AND AUDIT, RISK AND BUSINESS TRAINING
GROUP 4 FINANCIAL SERVICES FRAUD OPERATIONS
M.J. TAN FINANCE BUSINESS AND PAYMENT GATEWAY SELF-SERVICE TRADING AND ASSET A.L.M. ANTIQUINA TREASURY OPERATIONS COMPLIANCE AI AND ENGAGEMENT
BINONDO REGION METRO WEST REGION A.A.S. FAJARDO D.T. MORALES G.T. AUSTRIA M.J.J. PEREZ C.A.D.L. BANAL RECOVERY GROUP W.P. CASILLANO M.P.E. BAGSIT S.C. RATILLA C.M. GO
K.L.Q. TEE L.A.A. CASTAÑEDA R.C.T. GERONIMO
CORPORATE BANKING GLOBAL MARKETS AI AND INNOVATION

COMMERCIAL BANKING 5 GROUP 5 VEHICLE FINANCING DIGITAL CHANNELS TRADING CORE OPERATIONS CENTER OF TALENT ACQUISITION
GLOBAL CITY REGION QUEZON CITY REGION E.S. APILADO M.A.C. BALANGUE B.N. HERNANDEZ A.J.D. ATIENZA J.Y.M. ZAGALA M.G.G. CATOTO EXCELLENCE A.M. CABERTE
C.P.G. OCAMPO F.C. TIONGSON A.G. HEINRICH
DATA PLATFORM TALENT

COMMERCIAL BANKING 6 CORPORATE BANKING PRIVATE BANKING CUSTOMER EXPERIENCE CREDIT INITIATION MANAGEMENT AND
GROUP 6 COE AND
MANILA REGION ORTIGAS REGION E.L. CAYANGA, JR. A.J.T. AGUSTIN P. RAMANKUTTY ARCHITECTURE HUMAN RESOURCE
M.D.F. LACSON J.M.O. ROXAS A.A.S. FAJARDO I.G. JAYME INFORMATION
D.R. HARDOON
J.C.L. BERNARDINO
COMMERCIAL BANKING 7 CORPORATE BANKING IN-BUSINESS CONTROL MARKETING AND COLLECTIONS BEHAVIORAL HUMAN
MAKATI REGION LUZON NORTH REGION E.C. DON GROUP 7 N.I. KHAN DIGITAL EXPERIENCE (CARDS AND PL) SCIENCE RESOURCE LEGAL
C.P.P. LONTOC G.P. DE GUZMAN P.D. QUITO R.A.M. AGUIRRE B.R.A. ANGELES A.G. HEINRICH N.N.R. SANTOS
CORPORATE BANKING FINANCIAL PLANNING COLLECTIONS DATA VENTURES EMPLOYER BRANDING

METRO CENTRAL LUZON SOUTH REGION COMMERCIAL BANKING 8 AND EMPLOYEE
REGION GROUP 8 AND ANALYTICS (AUTO AND MORTGAGE) AND INSIGHTS
B.P. SY CHU E.T. SYKAT Q.C. SAN DIEGO, JR. P.E.N. SANTOS J.J.V. DEOMANO A.J.F. MAÑALAC COMMUNICATIONS
J.F.L. TOLENTINO M.G. BUENCAMINO
CORPORATE BANKING STRATEGIC INITIATIVES CLIENT ENGAGEMENT CSR AND

METRO EAST REGION METRO CEBU REGION SME BUSINESS GROUP 9 AND TRANSITION SOLUTIONS GROUP SUSTAINABILITY
C.G. REBUENO R.P.R. SARMIENTO, JR. E.V. ENRIQUEZ III J.Y. GAMO M.K.N. ROXAS S.P. UMALI A.M.J. OZAETA
METRO NORTH REGION VISAYAS REGION CORPORATE BANKING OCCUPATIONAL

L.P. PERALTA R.V. GABAYERON GROUP 10 SAFETY AND HEALTH
D.A. ASUNSION H.C. PEREZ
METRO SOUTH REGION MINDANAO REGION

A.H. LIM M.P.P. TAN
MANAGEMENT SALES AND SUPPORT OPERATIONS CONTROL

COMMITTEE MARKETING
CONGLOMERATE
MAP
CITY SAVINGS BANK, INC. (CSB) – 99.79%

THE INSULAR LIFE
ASSURANCE CO. LTD.
12.27% UBP INVESTMENTS CORPORATION – 100% FIRST AGRO-INDUSTRIAL
(formerly, Union Properties, Inc.) RURAL BANK, INC. (FAIRBANK) – 100%
(UIC – 51%, CSB – 49%)
ABOITIZ EQUITY UBX PHILIPPINES CORPORATION – 100%

BANANA FINTECH
VENTURES, INC. PETNET, INC. – 51% SERVICES
49.92% (CSB – 40%, UIC-11%) CORPORATION –
UBX PRIVATE LIMITED – 100% 32%
93
PCD NOMINEE UBX REMIT PTE LTD. – 100% BANGKO KABAYAN, INC. – 70%
UNION BANK OF THE PHILIPPINES
CORPORATION (in the process of securing a remittance license) (CSB-49%, UIC-21%)

11.45%
SHIPTEK SOLUTIONS PTE. LTD. – 30% PROGRESSIVE BANK, INC. UNDER NAME
PROGRESSIVE A RURAL BANK – 100%
SOCIAL (CSB-49%, UIC-51%)*
SECURITY
SYSTEM FINTECH PLATFORM VENTURES LTD. – 31.98%

*pending issuance of BIR tax clearance/CAR
16.98% for shares transferred to UIC under a Deed of
Assignment of Shares of Stock
CC MOBILE FINANCIAL SERVICES, INC. – 100%
SOCIAL
SECURITY FIRST UNION INSURANCE
SYSTEM (1) & INC. (FUIFAI) – 100%
1.92% FINSCORE INC. – 100%
PCD NOMINEE SHIPTEK SOLUTIONS CORPORATION – 30% FIRST UNION DIRECT

CORPORATION CORP. (FUDC) - 100%
(Non-Filipino)
1.20% UNIONDIGITAL BANK INC. – 100%
Doing business under the name and style of UnionDigital
FIRST UNION PLANS, INC. (FUPI)
(UIC – 97.22%, UBP – 2.78%)
SHAREHOLDERS CITICORP FINANCIAL SERVICES AND INSURANCE
WITH LESS THAN 1% BROKERAGE PHILIPPINES, INC. – 100%**
OWNERSHIP EACH *pending issuance of BIR tax clearance/CAR for
6.26% UBP’s purchase of shares
UNION DATA CORP. (UDC)* – 100%

INTERVENTURE CAPITAL CORP. (IVCC)* – 60%
UBP SECURITIES, INC. (UBPSI)* – 100%
*Dormant.
**The SEC approved the change of corporate name to UnionBank Financial Services and Insurance Brokerage Inc. [formerly Citicorp Financial Services and Insurance Brokerage Philippines, Inc.] on 28 February 2023
PROFILE OF THE BOARD
OF DIRECTORS
Erramon I. Aboitiz, 65, Filipino Mr. Ortiz became a member of the Claustro de Profesores of the University of
Non-Executive Director, 29 years in the Board Santo Tomas (UST) as he was conferred a Doctor of Humanities degree, Honoris Causa,
Represents Aboitiz Equity Ventures on December 11, 2015. He was inducted as Honorary Fellow of Institute of Corporate
Directors (ICD) on August 12, 2022. Other recognition bestowed to him were Asian
Serves as Chairman of UnionBank. He is a Director of Aboitiz Equity Ventures, Inc., Banker Lifetime Award and Philippine Blockchain Leader of the Year 2022. He graduated
a publicly listed company, and the Aboitiz Infracapital, Inc. Mr. Aboitiz also sits Magna Cum Laude with a degree in the Economics Honors Program from Ateneo
as a Board of Trustees with the Asian Institute of Management. de Manila University.
Mr. Aboitiz was awarded the Management Association of the Philippines’ Management Man Chairman: Information Technology and Cybersecurity Committee
of the Year and Ernst & Young's Entrepreneur of the Year both in 2011. Member: Executive Committee, Risk Management Committee, Trust Committee,
94 Market Risk Committee, Operations Risk Management Committee,
Mr. Aboitiz earned a Bachelor of Science degree in Business Administration, major in Accounting Corporate Governance Committee
and Finance, from Gonzaga University in Spokane, U.S.A. He was also conferred an Honorary
Doctorate Degree in Management by the Asian Institute of Management. He is not connected Edwin R. Bautista, 62, Filipino
with any government agency or instrumentality. Executive Director, 7 years in the Board
Chairman: Executive Committee, Trust Committee Serves as Director and President & Chief Executive Officer of UnionBank. He also serves as
Vice Chairman: Non-Executive Board Chairman of the following subsidiaries and affiliates of UnionBank: First Union Plans, Inc.;
Member: Risk Management Committee, Market Risk Committee, Vice Chairman of City Savings Bank, Inc.; and Director of UBP Investments Corporation,
Corporate Governance Committee UBX Philippines Corporation, UnionDigital Bank Inc., and PETNET, Inc. He is a Director
of Aboitiz Power Corporation, a publicly listed company. He was the President and
Justo A. Ortiz, 65, Filipino Chief Operating Officer of the Bank from January 1, 2016 to December 31, 2017. He also
Non-Executive Director, 29 years in the Board served as Senior Executive Vice President of the Bank from 2011 to 2015. He acted
Represents Aboitiz Equity Ventures as President of the International Exchange Bank in 2006 until its merger with UnionBank.
He was Senior Vice-President of UnionBank from 1997 to 2001 and Executive Vice
Serves as Vice Chairman of UnionBank. He holds the position of Chairman President from 2001 to 2011. He previously worked as Senior Brand Manager at Procter
and/or Director of various subsidiaries of the Bank: UnionDigital Bank Inc. and Gamble, Marketing and Sales Director of the Philippines and Guam at American
and UBX Philippines Corporation. He sits as Chairman of the following companies: Express International, and Vice President/Group Head of Transaction Banking at Citibank.
Fintech Philippines Association, Inc., Distributed Ledger Technology Association
of the Philippines, Inc., Pilmico Foods Corporation, Pilmico Animal Nutrition, Aboitiz FeedAll Mr. Bautista earned his Bachelor of Science in Mechanical Engineering degree from the
Holdings, Inc.; Director of Aboitiz Equity Ventures, Inc. and Concepcion Industrial Corporation, De La Salle University. He also completed the Advanced Management Program at the
both publicly listed companies; Director of Philippine Payments Management, Inc., Harvard Business School, U.S.A.
Member of the Board of Trustees of The Insular Life Assurance Co., Ltd., Member of the
Management Association of the Philippines, Member of the Board of Trustees Member: Executive Committee, Trust Committee, Information Technology
of Philippine Trade Foundation, Inc., Makati Business Club and World Presidents Organization. and Cybersecurity Committee
He was the Chief Executive Officer of the Bank from 1993 to 2017. Prior to his stint
in UnionBank, he was Managing Partner for Global Finance and Country Executive
for Investment Banking at Citibank, N.A.
Sabin M. Aboitiz, 58, Filipino Mr. Lozano graduated with a Bachelor of Science degree in Business Administration
Non-Executive Director, 11 years in the Board from the University of the Philippines (Diliman) and holds an MBA degree from
Represents Aboitiz Equity Ventures The Wharton School of the University of Pennsylvania.
Serves as Director of UnionBank. He is President and Chief Executive Officer of Aboitiz Member: Executive Committee
Equity Ventures, Inc., and Chairman of the Board of Aboitiz Power Corporation, Alternate Member: Risk Management Committee, Market Risk Committee
both publicly listed companies.
Ana Maria A. Delgado, 42, Filipino
Mr. Aboitiz is also the President of AEV Aviation, Inc., and AEV-CRH Holdings, Inc., Director, 2 years in the Board
wholly-owned subsidiaries of Aboitiz Equity Ventures, Inc. (AEV). Represents Aboitiz Equity Ventures
95
He is the Chairman of Aboitiz Foundation, Inc., Aboitiz Land, Inc., Aboitiz Power Corp, Serves as Director and Senior Executive Vice President, Chief Digital Channel Officer
Manila-Oslo Renewable Enterprise, Inc.; Republic Cement Services, Inc., Filagri Holdings Inc., and Chief Customer Experience Officer of UnionBank. She is the Chairman of subsidiary
Director of Aboitiz & Company, Inc., Aboitiz Equity Ventures, Inc, Aboitiz InfraCapital, Inc, City Savings Bank, Inc., and Director of SingLife Philippines, Republic Cement and
AEV CRH Holdings, Inc.; Republic Cement and Building Materials, CRH Aboitiz Holdings, Inc., Building Materials Inc., and Aboitiz Equity Ventures, Inc., a publicly listed company.
Apo Agua Infrastructura, Inc., Aboitiz Construction International, Inc., Aboitiz Construction, Inc., She started her career with UnionBank as a Product Manager under the Retail Banking
Unity Digital Infrastructure Inc., Pilmico International Pte. Ltd, Aboitiz Power International Pte. Ltd., Center and has held multiple positions in the Bank covering SME lending and Consumer
and AEV International Pte. Ltd. Finance businesses. Prior to joining the Bank, she was an Assistant Vice President

for Product Management at Citibank, N.A. from 2006 to 2008.
He spent much of his professional life with Aboitiz Transport, Inc.; his last position
was as President and Chief Executive Officer of one of its subsidiaries, Aboitiz One, Inc. Ms. Delgado graduated with a Bachelor of Arts in Art History/Painting from
(owner of the 2GO brand) now called 2GO Group, Inc. He graduated from Gonzaga Boston College and obtained her Master’s Degree in Business Administration
University in the USA with a B.S. Business Administration Degree, majoring in Finance. from New York University Stern School of Business in 2010.
Member: Non-Executive Board, Executive Committee Member: Information Technology and Cybersecurity Committee
Alternate Member: Operations Risk Management Committee, Alternate Member: Executive Committee, Market Risk Committee
Corporate Governance Committee
Samel A. Aboitiz, 31, Filipino
Manuel R. Lozano, 52, Filipino Non-Executive Director, 1 year in the Board
Director, 6 years in the Board Represents Aboitiz Equity Ventures
Serves as Director of UnionBank. He holds the position of Executive Vice President Serves as Director of UnionBank. He is Vice President and Head of Finance & Accounting
and Chief Financial Officer of UnionBank. He was Senior Vice President and Chief Financial for Coal Business Unit of Aboitiz Power Corporation (AboitizPower), a publicly listed company.
Officer of Aboitiz Equity Ventures, Inc. from June 2015 to December 2022, and Aboitiz He is also concurrently Treasurer and Controller of Aboitiz & Company (ACO), and
Power Corporation from January 2014 to June 2015, both publicly listed companies. Vice President for Finance of Aboitiz Equity Ventures, Inc. (AEV), a publicly listed company.
He was also the Chief Financial Officer of the Aboitiz Power Generation Group He is a member of the Board of Advisors of ACO, and the Board of Directors of
and AP Renewables, Inc. from December 2008 to December 2013. Prior to joining the San Fernando Light & Power Co. and Visayas Electric Company. He served as Assistant
Aboitiz Group, Mr. Lozano was the Chief Financial Officer and Director of PAXYS, Inc. Vice President and Controller for Coal Business Unit of AboitizPower from January 2019
and held various positions in financial institutions including Jardine Fleming & CLSA. to July 2021; Deputy Head of Operations of PETNET, Inc. from July 2018 to December 2018;
OF DIRECTORS
and Corporate Finance Manager of AEV from September 2016 to July 2018. Rolando L. Macasaet, 62, Filipino
Prior to joining the Aboitiz Group, he was Investment Banking Analyst for CLSA Non-Executive Director, 3 months in the Board
Exchange Capital, and with Castleton Commodities International as Freight Analyst. Represents Social Security System
Mr. Aboitiz earned his Bachelor of Arts, major in Economics and minor in Philosophy Serves as Director of UnionBank. Presently the President and Chief Executive Officer
degree from the University of Virginia, Charlottesville, USA. of the Social Security System (SSS). He also serves as Vice Chairperson of the Social
Security Commission, the governing body of the SSS. He previously held the position of
Member: Non-Executive Board, Operations Risk Management Committee, Audit Committee President and General Manager of the Government Service and Insurance System (GSIS)
Alternate Member: Risk Management Committee from 2019 to 2022, and as the Chairperson of the GSIS’ Board of Trustees in 2018.
96 Prior to joining the SSS, Mr. Macasaet has had extensive experience in public service
Nina Perpetua D. Aguas, 70, Filipino
Non-Executive Director, 7 years in the Board as he served in various leadership capacities in several Government-Owned and
Represents Insular Life Assurance, Co. Controlled Corporations (GOCCs) from 1988 to 2005, such as the Philippine National
Construction Corporation, Dasmariñas Industrial Steel Corporation, Skyway Corporation,
Serves as Director of UnionBank. She is currently the Executive Chairperson of the Board and Tierra Factors Corporation.
of Trustees of The Insular Life Assurance Co., Ltd. and its subsidiaries: Insular Health Care, Inc.
and Insular Foundation, Inc. She also sits as Non-Executive Director of Pilipinas Shell Petroleum Moreover, he has more than two decades of professional experience in financial services,
Corporation; Independent Director of Monde Nissin Corporation, both publicly listed companies; banking, and public-private partnerships, most of it with the Philippine National Bank (PNB),
and Director of Insurance Institute for Asia and the Pacific, Inc. She was also a member of the a publicly listed company. His work in PNB included postings overseas as Vice President
Board of Directors and Chairperson of Bank of Florida (A Rural Bank) and has served as a and General Manager in Los Angeles, California (USA) and as Regional Vice President-ASEAN
member of the World Bank Group’s Advisory Council on Gender and Development. in Singapore. His other stints in the banking sector included a two-year service as Corporate
Account Manager at BMO Bank of Montreal, Vancouver and as President and Vice Chairman
She was the President and Chief Executive Officer of Philippine Bank of Communications, of the Philippine Postal Bank from 2005 to 2007. He also served as a Board Member
a publicly listed company, from August 2012 to March 2015. Prior to this, she was of various companies such as San Miguel Corporation and Bank of Commerce, both publicly
the Managing Director for Private Banking, Asia-Pacific at ANZ Banking Group Ltd., listed companies, Private Infrastructure and Development Corporation, and PCI Bank.
Singapore. She also held various positions with Citigroup Inc. - Managing Director for He further served as Director of the Asian Infrastructure and Investment Bank (AIIB)
Corporate Compliance, New York; Country Business Manager, Global Consumer Group, in Beijing (China’s counterpart of the World Bank and Asian Development Bank).
Philippines; Head of Sales & Distribution, Global Consumer Group, Philippines;
and Regional Audit Director, Citigroup, Asia-Pacific. He holds a Bachelor of Science in Business Economics, Cum Laude, from the University
of the Philippines and has earned a Master of Business Administration - Honors Program
Member: Non-Executive Board, Executive Committee, Audit Committee, from the same university. He also finished an Executive Program in Finance at Columbia
Market Risk Committee, Corporate Governance Committee University in New York, and a Diploma in Management Development at Harvard Business
School in Boston, Massachusetts.
Member: Non-Executive Board, Executive Committee, Trust Committee,

Corporate Governance Committee, Information Technology and Cybersecurity Committee
Alternate Member: Risk Management Committee, Market Risk Committee,
Operations Risk Management Committee
Robert Joseph M. De Claro, 51, Filipino As the first General Accountant of the Securities and Exchange Commission (SEC)
Non-Executive Director, 3 months in the Board from 2003-2005, he set up the mechanism for effective financial reviews of the financial
Represents Social Security System reports submitted by listed and other public companies regulated by the SEC. His past
experience involves: Chairman and Chief Executive Officer of KPMG R.G. Manabat & Co.;
Serves as Director of UnionBank. He is a member of the Social Security Commission. a member of the Global Council of KPMG International; a member of the Asia-Pacific
He currently serves as President and CEO of Transpotech and Services, OPC. Board of KPMG International; Chairman of Auditing & Assurance Standards Council;
With a background in creating, administrating, and spearheading startup and operating Consultant of the SEC; and Partner of SyCip Gorres Velayo & Co., among others.
entities for over twenty-five years, Mr. De Claro is a business leader seasoned over Mr. Manabat has a track record of more than 40 years in the field of accountancy
decades of professional experience and equipped with necessary knowledge to achieve and has been a prominent advisor to many corporate and government agencies
common and long- term corporate goals. He has been able to deliver double-digit gains on good governance principles and practices.
in revenue through strategic growth strategies and with an expertise in identifying
97
opportunities, coupled with strong customer relationship management skills. In 2018, he received The Outstanding Professional Award in the Field of Accountancy
given by the Professional Regulation Commission. In 2019, he was honored by
Mr. De Claro held various roles with numerous companies such as President and CEO The Federation of Asian Institute of Management Alumni Associations, Inc. (FAIM)
for People4u, Inc.; Operating Partner for FutureNow Business Services, Inc.; President and with an AIM Alumni Achievement (Triple A) Award, the most prestigious recognition
General Manager for JMango Philippines, Inc.; and General Manager, APAC for GlobalOne given to AIM graduates.
Solutions, Inc. and Cloud Sherpas. He holds a Bachelor of Science in Computer Science
with specialization in Information Technology from De La Salle University. Mr. Manabat graduated from the University of the East with a degree in Business Administration.

He obtained his Master’s degree in Business Management from Asian Institute of Management.
Member: Non-Executive Board, Risk Management Committee, Audit Committee,
Market Risk Committee, Operations Risk Management Committee Chairman: Non-Executive Board, Audit Committee
Alternate Member: Executive Committee, Corporate Governance Committee, Member: Risk Management Committee, Market Risk Committee,
Information Technology and Cybersecurity Committee Operations Risk Management Committee, Corporate Governance Committee,
Related Party Transaction Committee
Roberto G. Manabat, 74, Filipino
Independent Director, 5 years in the Board Manuel D. Escueta, 71, Filipino
Independent Director, 2 years in the Board
Serves as Lead Independent Director of UnionBank. He is also an Independent
Director of the following companies: City Savings Bank, Inc. and UnionDigital Bank Inc., Serves as Independent Director of UnionBank. He is an Independent Director of City
both subsidiaries of the Bank; Citicorp Financial Services and Insurance Brokerage Savings Bank, Inc., a subsidiary of the Bank, and Citicorp Financial Services and
Philippines, Inc.; Goldilocks Bakeshop, Inc.; Sodexo BRS Philippines, Inc.; and National Insurance Brokerage Philippines, Inc. He also serves as Independent Director of Pilmico
Reinsurance Corporation, a publicly listed company. He is a Certified Public Accountant. Foods Corporation, Pilmico Animal Nutrition Corporation, Aboitiz FeedAll Holdings, Inc.,
Mr. Manabat is a Board Adviser on Internal Audits of SM Investments Corporation, a publicly and Pascual Laboratories, Inc.
listed company, and its subsidiaries/affiliates. He is also a Director in PA Properties and
Development Corp. He also sits as Trustee of the Shareholders Association of the Philippines;
Chairman of KPMG R.G. Manabat Foundation; and Chairman of Enactus Philippines.
OF DIRECTORS
Mr. Escueta sits as member of the Executive Committee and Marketing Adviser of and one of only two Lifetime Achievement Awardees by the Association of Marketing
Mega Global Corporation; member of the Board of Trustees and Advisory Council Educators (2007), the youngest marketing educator to be bestowed this honor. He was
of Educhild Foundation, Philippines; and Vice Chairman of the Board of Trustees also given the Brand Leadership Award during the World Brand Congress in India (2009).
of PAREF Southridge School for Boys. He served as Independent Director of Vitarich His accomplishments were recognized by the international community where he has been
Corporation, a publicly listed company, from 2014 to mid-2022. He was the President included in the 10th edition of the International Who’s Who of Intellectuals (England).
of Educhild Foundation Philippines from 2004 to 2019, and also the President and
CEO of Pascual Laboratories, Inc. from 2009-2012. He also served as the Chairman Mr. Go has completed the Blue Ocean Strategy qualification process in Blue Ocean Strategy
of the Board of Directors and Business Head of Pascual Consumer Health Corporation, Inc. Institute in Insead, France. He has taught at the De La Salle and Ateneo Universities. He is also
and Pascual Consumer Health Division, respectively. He was the Vice President for an Executive Scholar of the Kellogg Business School (in marketing and Sales Management)
Corporate Marketing and Communications of United Laboratories, Inc. from September as well as the MIT Sloan (in Strategy and Innovation). He also took advance marketing
98 2001 to March 2004. He also worked as General Advertising and Marketing Manager programs at Harvard, Wharton and at the London Business School. He specializes
for Procter & Gamble, Asia. in the fusion of marketing and innovation using the lenses of data-driven entrepreneurship
and teaches advanced marketing subjects. He has given talks and facilitated over
Mr. Escueta is a graduate of University of the Philippines in Diliman, Quezon City, 1,000 marketing seminars in the Philippines and internationally to teams in diverse industries,
with a degree in Business Administration, Majoring in Marketing. in different situations and contexts.
Chairman: Risk Management Committee He graduated from De La Salle University with a degree in Management and took
Member: Non-Executive Board, Audit Committee, Market Risk Committee, his Master of Arts degree in Religious Studies from Maryhill School of Theology.
Operations Risk Management Committee, Corporate Governance Committee,

Related Party Transaction Committee Chairman: Market Risk Committee
Member: Non-Executive Board, Risk Management Committee, Audit Committee,
Josiah L. Go, 60, Filipino Corporate Governance Committee
Independent Director, 2 years in the Board
Atty. Francisco Edralin Lim, 67, Filipino
Serves as Independent Director of UnionBank. He is the Chairman and Chief Innovation Independent Director, 2 years in the Board
Strategist of Mansmith and Fielders, Inc., previous winner of the Innovation Excellence
award given by the ASEAN Business Awards, and Chairman of Waters Philippines Serves as Independent Director of UnionBank. Atty. Lim is a Senior Legal Counsel of the
(the market leader in the direct selling of premium home water purifiers in the Philippines). Angara Concepcion Regala & Cruz Law Offices (ACCRALAW). He is incumbent chairman
He served as National President of the Philippine Marketing Association in 1991, of the FINEX Academy and Justice Reform Initiative (JRI) and Co-Chairman (together with
Chairman of the Direct Selling Association of the Philippines in 2002, and National President Finance Secretary Benjamin Diokno) of the Capital Market Development Council.
of the Association of Marketing Educators from 2004-2005.
Atty. Lim is former President of the Philippine Stock Exchange, Inc. (PSE),
Mr. Go is known as one of the Philippines’ most respected marketing gurus and the most Securities Clearing Corporation of the Philippines (SCCP), Financial Executives
awarded business educators of the Philippines with 19 bestselling and record-breaking Institute of the Philippines (FINEX), Management Association of the Philippines (MAP)
marketing and entrepreneurship books. He has been recognized as one of the Agora and Shareholders’ Association of the Philippines (SharePHIL).
Awardees in 1994, one of the Ten Outstanding Young Men (TOYM) of the Philippines
in 2001, one of the Ten Outstanding Young Persons (TOYP) of the World in 2002
*
publicly listed company
Atty. Lim currently serves as a Director/Trustee of several Philippine stock and non-stock Among Atty. Lim’s most recent awards are: “Elite Practitioner” in Capital Markets and
corporations, among which are the Air Asia Group Limited (Malaysian company), Dispute Resolution (2020-2022) by Asialaw Profiles; “Benchmark Litigation Star” (2021)
Alphaland Corporation, Converge Information and Communications Technology Solutions1*, Inc, and “Benchmark Litigation Asia-Pacific Dispute Star” (2020) in Commercial and
First Philippine Holdings Corporation2*, The Insular Life Assurance Co., Ltd. and Union Bank Transactions, Government & Regulatory, Insolvency, and Whitecollar Crime by Benchmark
of the Philippines*. Litigation Asia-Pacific; “Leading Lawyer” in Banking and Finance: Capital Markets,
and Dispute Resolution (2020-2021) by Chambers Asia-Pacific, Chambers and Partners;
Atty. Lim is a member of the Integrated Bar of the Philippines, Philippine Bar Association, ”Leading Lawyer” in Capital Markets and Tax (2020-2021) by The Legal 500 Asia Pacific;
New York State Bar Association and the American Bar Association. “A-List Re: Philippines’ Top 100 Lawyers” (2018-2020) by Asia Business Law Journal
(Vantage Asia); “Lawyer of the Year – Philippines” by Benchmark Litigation, Asia-Pacific
Atty. Lim is a columnist of Rappler (on leave) and former columnist of the Philippine Star Awards 2019; Chairman’s Merit Award FINEX Foundation 2020; “Market Leader:
and Philippine Daily Inquirer. Banking and Mergers & Acquisitions” (2019- 2020) by the International Finance Law Review
99
(IFLR1000; “Ranked Lawyer” in Corporate and Finance (2017-2021) by the Chambers
Atty. Lim is the Chairman of the Commercial Law Department of the Philippine Judicial Global, Chambers & Partners; “Commended External Counsel of the Year” by the In-House
Academy, Co-Chairperson of the Sub-Committee on E-Commerce Law, member of the Community Counsels (2016-2020); “Deal Maker of the Year” by Thomson Reuters Asian
SubCommittee on Commercial Courts and the Committee on the Revision of the Rules of Legal Business Philippine Law Awards 2017; Punong Gabay Award from the Philippine
Court of the Philippine Supreme Court. Council of Deans and Educators (PCDEB); Professorial Chair in Commercial Law from the
Philippine Supreme Court, Philippine Judicial Academy and the Metrobank Foundation, Inc.;
Atty. Lim is a law professor in the School of Law, Ateneo de Manila University and Certificate of Commendation from the Supreme Court of the Philippines; and Certificate

School of Law of San Beda University (on leave). of Appreciation from Capital Market Institute of the Philippines.
Atty. Lim actively participated in assisted in the enactment several Philippine laws such Atty. Lim is a co-author of The Philippine Competition Act: Salient Points and Emerging
as the Financial Rehabilitation and Insolvency Act (FRIA), Credit Investment System Act Issues and the Bench Book for Commercial Courts published by the Supreme Court
(CISA), Real Estate Investment Trust Act (REITA), Personal Equity Retirement Account Act of the Philippines.
(PERAA), and the Philippine Competition Act (PCA).
Atty. Lim has a Bachelor of Arts (cum laude) and Bachelor of Philosophy (magna cum laude)
Atty. Lim actively participated in the drafting of several Supreme Court rules of procedure degrees from the University of Santo Tomas, Bachelor of Laws (Second Honors) from the
such as the Interim Rules on Intra-Corporate Controversies, Rules on Electronic Evidence, Ateneo de Manila University and Master of Laws from the University of Pennsylvania, USA.
Rules on Notarial Practice, Rules on DNA Evidence, Financial Rehabilitation Rules of Procedure,
Financial Liquidation and Suspension of Payments, Rules of Procedure on the Liquidation Chairman: Corporate Governance Committee, Related Party Transaction Committee
of Closed Banks, and Interim Rules on Electronic Notarization. Member: Non-Executive Board, Audit Committee, Market Risk Committee,
Operations Risk Management Committee
PROFILE OF
KEY OFFICERS
PROFILE OF KEY OFFICERS Manoj Varma holds the position of Senior Executive Vice President and Head of the
Consumer Banking Group of UnionBank. He is also the Chairman of Citicorp Financial Services
Edwin R. Bautista serves as Director and President & Chief Executive Officer of UnionBank. and Insurance Brokerage Philippines, Inc. Prior to joining the Bank, he was the Country
He also serves as Chairman of the following subsidiaries and affiliates of UnionBank: Business Manager of Citibank Philippines from 2018 to 2022. During his 30-year career
First Union Plans, Inc.; Vice Chairman of City Savings Bank, Inc.; and Director of with Citibank, he served in various business management across all functional units in finance,
UBP Investments Corporation, UBX Philippines Corporation, UnionDigital Bank Inc., sales, credit, and marketing from Philippines, India, Taiwan, South Korea, and the United States
and PETNET, Inc. He is a Director of Aboitiz Power Corporation, a publicly listed company. of America. Mr. Varma graduated in bachelor’s degree in mechanical engineering from New
He was the President and Chief Operating Officer of the Bank from January 1, 2016 to Delhi, India and obtained his MBA degree from Georgetown University, Washington DC.
December 31, 2017. He also served as Senior Executive Vice President of the Bank from 2011
to 2015. He acted as President of the International Exchange Bank in 2006 until its merger Roberto F. Abastillas holds the position of Executive Vice President and Center Head
100 with UnionBank. He was Senior Vice-President of UnionBank from 1997 to 2001 of the Commercial Banking of UnionBank. He is also a Director of First Union Insurance
and Executive Vice President from 2001 to 2011. He previously worked as Senior Brand & Financial Agencies, Inc. He started his career with the Bank in 2006 as Senior Vice
Manager at Procter and Gamble, Marketing and Sales Director of the Philippines and President and Head of the Commercial Banking 1 Group. Mr. Abastillas was previously
Guam at American Express International, and Vice President/Group Head of Transaction Senior Vice President and Head of the Account Management Center I at International
Banking at Citibank. Exchange Bank from 1995 to 2006. He was Vice President and Head of the Account
Management Group 1 for United Coconut Planters Bank from 1986 to 1995.
Mr. Bautista earned his Bachelor of Science in Mechanical Engineering degree from the
De La Salle University. He also completed the Advanced Management Program at the Ramon G. Duarte holds the position of Executive Vice President and Head of Transaction
Harvard Business School, U.S.A. Banking Center of UnionBank. He was previously Chief Technology Officer of Dotenable, Inc.
from 2000-2001; Head of Electronic Banking Transaction Services at ABN AMRO
Member: Executive Committee, Trust Committee, Information Technology and Philippines from 1999 to 2000; and Assistant Vice President of Product Management
Cybersecurity Committee under Global Transaction Services at Citibank from 1996 to 1999.
Ana Maria A. Delgado serves as Director and Senior Executive Vice President, Antonino Agustin S. Fajardo is Executive Vice President and Center Head of Corporate
Chief Digital Channel Officer and Chief Customer Experience Officer of UnionBank. Banking of UnionBank and serves as Director of First Union Insurance & Financial Agencies, Inc.,
She is the Chairman of subsidiary City Savings Bank, Inc., and Director of SingLife Philippines, a subsidiary of the Bank. He is also a Senior Credit Officer and has had broad experience in
Republic Cement and Building Materials Inc., and Aboitiz Equity Ventures, Inc., a publicly the corporate and consumer sectors of the Bank in various leadership roles. He headed the
listed company. She started her career with UnionBank as a Product Manager under the Mortgage Business from 2013 to 2017, and in the early years of the Bank from 1994 to 1998,
Retail Banking Center and has held multiple positions in the Bank covering SME lending also played key roles in the Specialized Lending Group, which was involved in general project
and Consumer Finance businesses. Prior to joining the Bank, she was an Assistant Vice finance and the on-lending of official development funds to key accounts. Prior to joining
President for Product Management at Citibank, N.A. from 2006 to 2008. the Bank, he was Project Officer for the Private Development Corporation of the Philippines.
Ms. Delgado graduated with a Bachelor of Arts in Art History/Painting from Boston College
and obtained her Master’s Degree in Business Administration from New York University
Stern School of Business in 2010.
Member: Information Technology and Cybersecurity Committee

Alternate Member: Executive Committee, Market Risk Committee
Mary Joyce S. Gonzalez holds the position of Retail Banking Center Head at UnionBank Eric S. Lustre holds the position of Executive Vice President and Chief Trust Executive
with a Corporate Rank of Executive Vice President. She is also the Chairperson of First Union of UnionBank. He most recently served as President and Chief Executive Officer of Philam
Insurance and Financial Agencies, Inc., at the same time she is Director of UBP Investments Asset Management, Inc. from 2016 to 2021. Simultaneous to his role, he held various roles
Corporation and First Union Direct Corporation, all subsidiaries of the Bank. She started with Philam Group of Companies as Country Credit Officer and Chief Executive Officer
her career in UnionBank as Branch Manager of the Main Office Branch in 1994. After a few of Philam Properties Corporation, Philamlife Tower Management Corporation,
months, she was given an expanded role as Sales Director of the Makati 1 Region. Her stint as Philamlife Tower Condominium Corporation and the President of Tower Club, Inc.
Sales Director over the years saw major growth in the deposit and fund generation business, Mr. Lustre also served as Head of Corporate Finance and Real Estate Investment of
and the development of a very capable sales management team. In recognition of her The Philippine American Life and General Insurance Company. He was previously
contribution to the business, Joyce was promoted to Senior Vice President and was given a member of the Board of Directors of the following corporations: Phinma Corporation,
an additional task to develop and lead Customer Segment Management and bring greater a publicly listed company; Philam-Equitable Life Assurance Company; ICCP Holdings, Inc.;
customer centricity in UnionBank's pursuit in delighting its customers, given her seasoned Science Park of the Philippines, Inc.; Regatta Properties, Inc.; Beacon Property Ventures, Inc.;
101
abilities, and exposure in the business of Retail Banking. Pueblo de Oro Development Corporation; Cebu Light Industrial Park, Inc.; and RFM-Science
Park of the Philippines, Inc.
Manuel R. Lozano holds the position of Executive Vice President and Chief Financial
Officer of UnionBank. He currently serves as Director of the Bank. He was Senior Vice Mr. Lustre started his banking career as a Staff Analyst for Corporate Account
President and Chief Financial Officer of Aboitiz Equity Ventures, Inc. from June 2015 Management in Far East Bank & Trust Company, and with Citibank N.A. Manila Branch
to December 2022, and Aboitiz Power Corporation from January 2014 to June 2015, as Assistant Manager for Corporate Sales. He has a Bachelor of Science in Business
both publicly listed companies. He was also the Chief Financial Officer of the Aboitiz Management from Ateneo de Manila University and holds a Master’s degree in Business

Power Generation Group and AP Renewables, Inc. from December 2008 to December 2013. Management Major in Finance from the Asian Institute of Management.
Prior to joining the Aboitiz Group, Mr. Lozano was the Chief Financial Officer and Director
of PAXYS, Inc. and held various positions in financial institutions including Jardine Dennis D. Omila holds the position of Executive Vice President, Chief Information Officer,
Fleming & CLSA. IT Services Group and Operations and Shared Services Group Head of UnionBank.
He was the former Senior Vice President of the Infrastructure Engineering and Service
Mr. Lozano graduated with a Bachelor of Science degree in Business Administration Operations cluster of Globe Telecom, Inc., a publicly listed company, from 2014 to 2016.
from the University of the Philippines (Diliman) and holds an MBA degree from He was also the President and COO of NetX Technology Solutions, Inc. from 2002 to 2007.
The Wharton School of the University of Pennsylvania. His certifications include Certified Information Systems Security Professionals (CISSP),
Certified Check Point Security Instruction (CCSI), Certified Check Point Security Engineer
Member: Executive Committee (CCSE), Certified Check Point Security Administrator (CCSA), Vulnerability Assessment
Alternate Member: Risk Management Committee, Market Risk Committee Specialist, Threat Assessment Specialist, Certified Core and Edge ATM Network Specialist
(Fore Systems), Certified Networks Administrator (Nortel Networks), Certified SINIX, IRIX,
Solaris and BSD UNIX Administrator and Business Continuity Certified Planner (BCCP).
Mr. Omila is a graduate of De La Salle University with a degree in Bachelor of Science

major in Computer Science with specialization in Computer Technology (BSCS-CT).
PROFILE OF
KEY OFFICERS
Michaela Sophia E. Rubio holds the position of Executive Vice President and Raymond Anthony B. Acosta holds the position of Senior Vice President and Head
Chief Human Resource Officer of UnionBank. She is also the Lead for CSR, of Infrastructure and Service Management of UnionBank. He is responsible for the
Sustainability, and Occupational Safety and Health Division. She joined the Bank IT and Service Management operations and has led various infrastructure initiatives
in 2004 as Vice President and handled the Human Resource Services, Training and of the Bank. Prior to joining the Bank, he was Database Administrator/ Solutions
Organization Development divisions. Subsequently, she became the Deputy HR Director. Consultant of iASPire.Net Philippines. He served as LEAD Database Administrator/
Prior to joining the Bank, she was the Vice President and Country Human Resource, Solutions Consultant of Active Business Solutions, Inc. He started his career as
Quality and Corporate Communications Head in the Philippines of the global electrical LEAD Database Administrator/ Solutions Consultant for DataCenter Operations
and power company, Asea Brown Boveri (ABB) from 1999 - 2001. She worked from and Services of Open Systems Operation Corporate Information Solutions, Inc.
2001 - 2003 as a Senior Consultant in OTi Consulting Singapore working with government
owned and private organizations on Singapore Quality Class/Award, People Developer, Mr. Acosta graduated from Ateneo de Manila University with a degree in Bachelor
102 Industry Capability Upgrading (ICAP) and Work Life and Work Redesign of which of Science Major in Management Information Systems.
she was certified by SPRING Singapore. Before a career in Human Resource, she worked
for ten years in the semiconductor and electronics manufacturing industry handling Atty. Arlene Joan Roxas Tanjuaquio-Agustin holds the position of Senior Vice President
engineering and managerial functions in Statistical Process Control and Quality. and Head of Private Banking Group of UnionBank. She is a Chartered Wealth Advisor
and a Chartered Trust and Estate Planner. Atty. Agustin brings with her more than
Johnson L. Sia holds the position of Executive Vice President, Treasurer and Head of Global two decades of experience and expertise in Treasury and Trust. She started her career
Markets of UnionBank. He was formerly the Head of Financial Markets of ING Philippines. in banking in 1990 as a Trader in Asiatrust Bank, then moved to China Banking Corp.,
He has twenty-eight (28) years of experience in treasury and financial markets a publicly listed company, as an Assistant Manager for Treasury. In 1997, she transferred
from Citibank Philippines, Singapore and Korea. Mr. Sia started his banking career to Jade Progressive Savings and Mortgage Bank where she became the Senior Assistant
in Citibank by being part of the bank’s Management Associate Program and rose from Vice President-Treasurer. After her two-year stint, she went to join Robinsons Bank and
the ranks. He has broad treasury experience spanning risk management, sales, operations, became its First Vice President, Head of Treasury and concurrent Head of Legal & Credit
product development and general treasury management, including balance sheet management. Administration. From 2007 to 2009, she worked for GE Money Bank where she was
appointed as First Vice President and Treasurer. When GE Money Bank was acquired by
He has been active in leading industry market issues in the Philippines as Vice Chair BDO Unibank, Inc., a publicly listed company, she was appointed as the Customer Solutions
of the Open Markets Committee of the Bankers Association of the Philippines (BAP) Desk Head of the Treasury Capital Markets and Derivatives Division and at the same time
as well as the Chairperson of the BAP’s Benchmark Committee. served as the First Vice President and Treasurer of BDO Elite Savings Bank until 2011.
In the same year, she joined Maybank Philippines, Inc. where she became the Senior
He graduated Magna Cum Laude and obtained his Bachelor of Science degree Vice President, Treasurer and Head of Global Markets.
in Computer Science from Ateneo de Manila University. He obtained his Master
of Science in Business Management from the Asian Institute of Management Atty. Agustin completed her Bachelor’s degree in Political Science and Economics
and finished his graduate studies with high distinction. from the University of the Philippines, Diliman. She earned her Juris Doctor Law degree
at the Ateneo De Manila University and later took her Master’s degree in Business
Administration at De La Salle University. She is a member of the Integrated Bar
of the Philippines.
Francis B. Albalate holds the position of Senior Vice President and Financial Controller Konstantin O. Beloglazov holds the position of Senior Vice President and Portfolio
of UnionBank. He is a Certified Public Accountant. Prior to joining the Bank, he was an Lending Head. Prior to joining the Bank, he was the Consumer Lending Business Strategy
Audit Partner at Punongbayan & Araullo from 2003 to 2011. He worked as Head & Development Head of Citibank N.A. He has 16 years of experience in Operations,
of the Transaction Advisory Services from 2007 to 2009 and Audit Senior Manager Customer Engagement, Customer Lending and Project Implementation. Expert in call
from 1999 to 2003. He was a former Financial Services Industry Audit Leader centre operations & productivity, Product & portfolio SME in cards, cash loans, instalments.
at Deloitte Philippines from 2011 to 2016. He earned a Master’s degree in Business He started his career with Citibank N.A. and has held various positions within Citibank.
Management from the Asian Institute of Management. Mr. Beloglazov obtained his bachelor's degree in Linguistics from Sakhalin State University.
He graduated with a degree in Bachelor of Science in Commerce, majoring in Accounting, Antonio Sebastian T. Corro holds the position of Senior Vice President and Chief
from San Beda College. He attended the Pacific Rim Bankers Program at the University Cross-Sell Officer & Asset-Backed Lending Head of UnionBank. Prior to joining the Bank,
of Washington in 2006. he held various positions from 2001 to 2017 in MasterCard Asia/Pacific Pte. Limited such as
103
Country Manager in Thailand & Myanmar, leading the execution of business development
Maria Angelica C. Balangue is a Senior Vice President and Group Head in the strategies to expand MasterCard products and services throughout Thailand
Corporate Banking Center of UnionBank. She joined UnionBank as First Vice President and Myanmar; Country Manager and Chief Representative in Indochina Region,
in November 2019. She was previously with China Bank Capital Corporation and guiding the member banks across the Indochina region Vietnam, Cambodia, Laos and
ING Bank N.V., Manila Branch. She also worked at the Bank of Tokyo-Mitsubishi UFJ Ltd. Myanmar, through the execution of franchise related activities, among others;
in their Manila and Singapore offices. She completed the academic requirements and Vice President for Operations and Member Relations in the Philippines. He also held
for the Master of Science in Computational Finance at De La Salle University. various positions in Standard Chartered Bank from 1999-2001.

She obtained her undergraduate degree in Bachelor of Science in Economics from the
University of the Philippines, Diliman. Mr. Corro earned his Admistracion de Recurcos Fisicos Y Financieros from Colegio
Universitario Fermin Toro, Venezuela.
Atty. Joselito V. Banaag holds the position of Senior Vice President, Corporate Secretary,
and General Counsel of UnionBank. He was the former Head of the Legal and Compliance Albert Raymond C. Cuadrante holds the positions of Senior Vice President
Division and Corporate Governance of GT Capital Holdings, Inc., a publicly listed company, and Chief Marketing Officer of UnionBank. He was formerly the President of Acumen
from 2012 to 2015. He also previously worked at the Philippine Stock Exchange (PSE), Strategy Consultants, providing consultancy services focused on strategy, transformation
a publicly listed company, as the General Counsel and concurrently, as Chief Legal Counsel of and capability building to enable higher business performance. Mr. Cuadrante has almost
the Securities Clearing Corporation of the Philippines (SCCP). He was also Officer-in-Charge 30 years of collective experience in the field of digital commerce, brand management
of the Exchange’s Issuer Regulation Division. Prior to that, he held various positions in SGV and marketing. In 2008, he joined Jollibee Foods Corporation, a publicly listed
& Co., Cayetano Sebastian Ata Dado & Cruz Law Offices, PNOC Exploration Corporation, corporation, and handled various positions from Marketing Director for Red Ribbon,
and Padilla Jimenez Kintanar & Asuncion Law Offices. Vice President and Marketing Head of Jollibee, President for Greenwich, and established
and headed the Digital Commerce and Customer Loyalty division for the Philippines,
He earned his Bachelor of Arts in Political Science minoring in Japanese Studies which was tasked to lead the digital transformation for customer-facing touchpoints.
from the Ateneo de Manila University and his Bachelor of Laws from the University He was the recipient of the 2013 Asia Pacific Tambuli Chief Marketing Officer of the
of the Philippines. Year award. He started his Marketing career at Procter & Gamble Philippines.
Mr. Cuadrante graduated Bachelor of Science Major in Management Engineering

(Honors Program) from Ateneo De Manila University.
PROFILE OF
KEY OFFICERS
Gerard R. Darvin holds the position of Senior Vice President and Sales Head of Corporate Carlo I. Eñanosa holds the position of Senior Vice President and Head of Corporate Planning
Solutions under Transaction Banking Center of UnionBank. He has held other roles and Investor Relations of UnionBank. He also served as Treasurer of UBX Philippines Corporation,
in the Bank from 2000-2010 initially as a Relationship Manager in Retail Banking Center a wholly-owned subsidiary of the Bank. He joined the Bank in 2015 as Assistant Vice President
until he assumed the role of Director of Sales covering several regional areas. and Head of Strategic Risk Management Division and then held the role of Vice President and
Head of Budget and Planning Division. Prior to joining the Bank, he was Senior Assistant Vice
Prior to joining the Bank, he had extensive experience in Retail Banking Sales President and Head of Strategic Management Department of East West Banking Corporation,
as a Branch Manager in Philam Savings Bank (an AIG company) from 1996 to 2000 a publicly listed corporation. He had been a Project Management Officer for Citigroup
and a Sales Officer in Citytrust Banking Corporation from 1992-1996. He started Business Service – Asia. He also worked with International Exchange Bank from 1998-2006
his banking career at Urban Bank, a mid-sized bank known for private banking and held roles as Methods Analyst and Investments & Capital Budgeting Officer. Mr. Eñanosa
in 1990 as a Sales Associate. graduated from De La Salle University with a Bachelor’s degree in Industrial Engineering
104 Minor in Mechanical Engineering.
Mr. Darvin graduated with a Bachelor of Arts degree in Political Science at the
Ateneo de Manila University in 1990. Concepcion Perla P. Lontoc holds the position of Senior Vice President and Sales Director
of the Bank. She was First Vice President and Sales Director from July 2016 to June 2020.
Joebart T. Dator holds the position of Senior Vice President, Branch Channel Management She started her career with the Bank as Assistant Manager/ Sales Officer in May 1996.
Head of UnionBank. A graduate of Bachelor of Science in Business Administration Major She graduated with a degree in BS Economics from the University of the Philippines
in Accounting from Enverga University in Lucena City. He has been with the Bank Diliman in 1989.
for 25 years and has extensive experience in Branch Operations Management.
He has obtained Six Sigma Black Belt Certification last 2015. He was also a former Michael P. Magbanua holds the position of Senior Vice President and Head of Corporate
Sales Director under Retail Banking Group. Rose from the ranks, he started working and Digital Operations of UnionBank. He was First Vice President and Head of Operations
with the Bank as a Branch Service Officer and eventually became a Branch Manager. and Shares Services of the Bank from July 2019 to July 2021. From 2014 to 2016,
In addition to this, he also worked with China Banking Corporation and Metropolitan he served as President & CEO of Price Solutions Philippines, Inc, a Standard Chartered
Bank and Trust Corporation, both publicly listed companies, early in his career. Group Company. Prior to this, he held various positions in Sales and Distribution with
Citibank N.A. Philippines and its affiliates. He was Marketing Manager, and Operations
Montano M. Dimapilis holds the position of Senior Vice President and Head of Business Special Projects & Front-end Collection Manager in Equitable Cardnetwork, Inc.
Services Group of UnionBank. He joined the Bank as Vice President and Head of Facilities
Management Group in November 2011 before his promotion as First Vice President, Mr. Magbanua graduated from the De La Salle University with Bachelor’s degree
Head of Facilities Management Group and Branch Network Management in July 2015. in Business Administration Major in Computer Application. He obtained his MBA
Prior to joining UnionBank, he was Resident Manager/ General Manager of Pacific Plaza from the University of the Philippines.
Condominium Association under FPD Asia Property Management. Involved in various
consultancy works related to property management and construction. He was Operations Dave T. Morales holds the position of Senior Vice President and Head of Mortgage
Manager of Phoenix Omega Development Corporation. He also worked as Project Manager Finance Business of UnionBank. He joined the Bank as Relationship Manager and then
and Project Site Engineer to companies in Saudi Arabia. assumed the role of Sales Director. He started his career as Merchants Specialist Acquiring
of FarEast Bank & Trust Company. He has also worked with Bank of the Philippine Islands,
Mr. Dimapilis is a licensed Civil Engineer and Real Estate Broker. He earned his a publicly listed company, as Merchants Sales Acquiring.
Bachelor of Science in Civil Engineering degree from Adamson University and took
his Master of Business Administration degree from Ateneo de Manila University. Mr. Morales is conferred a Doctor of Philosophy in Commerce and earned his Master’s
degree in Business Administration both from the University of Santo Tomas.
Ronaldo Jose M. Puno currently holds the position of Senior Vice President Gautam Sharma holds the positions of Senior Vice President and Retail Bank
and Solutions Delivery Head of UnionBank. where he is responsible for the bank's Sales Network Head of UnionBank. He has a 15-year track record of success in financial
overall software development. He joined the Bank on June 4, 2018 as Head of Business services and a result-oriented professional with experience across business strategy,
Process Automation. portfolio management, sales & marketing, and digital banking. Prior to joining the Bank,
he was Senior Vice President in Regional Retail Bank for APAC & EMEA of Citibank, N.A.
Prior to the bank, Mr. Puno directed local privately-held holdings companies in applying He started his career with Citibank N.A. in 2007 and has held various positions within
new technologies for mass housing and transportation segments. Mr. Puno also served Citibank across India, Philippines, and Singapore.
as the Global Business Process Lead in the U.S.A for one of the world's largest
biotechnology companies, leading process improvement and automation COE activities He graduated with a Bachelor’s degree in Technology (Mechanical Engineering)
for N. America, EMEA, Brazial, Latin America, and Asia. Mr. Puno also worked at the from Punjab Technical University and obtained his Master’s in Management Studies
U.S.A's leading car rental company to automate and digitize its case management (Marketing) from the University of Mumbai.
105
and fulfilment processes, and implemented the OMS for one of the world's largest
telecommunications companies. Mr. Puno graduated with a degree in Commerce from the Julian P. Tarrobago, Jr. holds the position of Senior Vice President and Chief Investment
University of Virginia, U.S.A. Officer of UnionBank. Prior to joining the Bank, he was Head of Equities of ATR Asset
Management (ATRAM), where he managed the best-performing Equity Fund in the
Jose Maria O. Roxas holds the position of Senior Vice President and Sales Director Philippines for the past 6 years.
of UnionBank. He started his career with the Bank as Foreign Exchange Trader
and then transferred to Retail Banking Group as a Relationship Manager. In 2011, he was Prior to this, he worked with ING Bank as its Assistant Vice President for Investments

promoted as Sales Director for the Bank’s Metro Central Region and for Ortigas Central for four (4) years--where he spear-headed the implementation & development of the
Business district in 2017. Mr. Roxas graduated from De La Salle – College of St. Benilde Regional Equity Investment Process, in collaboration with the Australian and Hong Kong
with a degree in Bachelor of Science in Business Management. IIM Offices. He had a short stint with Sunlife of Canada as its Senior Equities Portfolio
Manager. Earlier, he was Vice President for Investment Research at Philippine Equity
Raquel N. Sevidal holds the position of Senior Vice President and Head of the Wholesale Partners, Inc (formerly known as Merrill Lynch Philippines) where he functioned mainly
Credit Group of UnionBank. She has more than twenty-four (24) years of experience as an industry analyst covering consumer, property and power and energy sectors.
in the banking industry. She was formerly First Vice President and Sub-Group Head -
Countryside of the Commercial Banking Group of Metropolitan Bank and Trust Company Mr. Tarrobago completed his degree in Management of Financial Institutions from
(“MBTC”). She also previously held the position of Division Head of Credit Group from De La Salle University Manila and finished further certifications in ING Investment Institute
and a Designated Senior Credit Officer of MBTC. She started her career as Relationship Hong Kong in 2007 and the UBS Asset Management Academy of the Phil Securities
Manager of Equitable PCIBank. and Exchange Commission Singapore in 2017.
Ms. Sevidal graduated with a Bachelor of Science degree in Psychology from the
University of Santo Tomas and holds a Master’s degree in Business Administration
at De La Salle University.
PROFILE OF
KEY OFFICERS
Jeannette Yvonne M. Zagala holds the position of Senior Vice President and Financial Markets Rear Admiral Rommel Jason L. Galang PN, (Ret.) holds the position of Senior Vice
Sales Head of UnionBank. Prior to joining the Bank in November 2017, she was First Vice President and Chief Security Officer of UnionBank. Prior employment in Unionbank,
President and Distribution Group Head of East West Banking Corporation, a publicly listed he is a senior officer of the Philippine Navy where he held various position. Rear Admiral
company. She has extensive experience with distribution of investment and foreign exchange Galang is a distinguished military officer with over 38 years of active service and exhibits
sales, fixed income securities and UITF products to difference market segments, among other. exceptional standard of excellence, fine leadership acumen, a notable innovator
Ms. Zagala’s leadership positions have included serving as Vice President and Fixed Income in navy modernization and perspective vision. He has expertise in the field of strategic
Products and Trading Desk Head of Citicorp Financial Services and Insurance Brokerage Phils., and tactical planning, operations and research, project management on the Philippine
Inc. from July 2010 to January 2015, Senior Assistant Vice President and Fixed Income Navy Modernization program, and special operations. His notable position while on active
Asian Credit Portfolio of Banco De Oro Universal Bank, a publicly listed company, service was the former Commander of the Naval Sea Systems Command; Commander,
from February 2007 to July 2010. She started her career as Money Market Trader from Naval Forces West; Deputy Commander, Philippine Fleet; Commander, Littoral Combat Force;
106 The Philippine Banking Corporation, and later joined the Metropolitan Bank and Trust Company, Chief of United Command Staff, Western Command, AFP; Director, Naval Research
a publicly listed company as US$/PhP Swap and Forward Trader. She held various positions and Technology Development Center; and Commander of the Naval Special Operations
with the National Association of Securities Brokers, Inc. and currently serves as Co-Chair Group (Navy seals).
of its Education Committee.
Rear Admiral Galang PN (ret) is a recipient of the Philippine Legion of Honors medal given
Ms. Zagala graduated with a Bachelor of Science degree in Business Economics from the by president Rodrigo Duterte, and the Order of Lakandula (rank of Commander) given
University of the Philippines and completed her Applied Business and Economics Program by President Gloria Macapagal arroyo, He also received Four Distinguished Service Star,
Candidate from the University of Asia and the Pacific. Two Distinguished Navy Cross, Two Meritorious Achievement Medal, One Distinguished
Service Medal, One Gawad sa kaunlaran Medal, Five Bronze Cross medal, Two Silver Wing
Myrna E. Amahan holds the position of Senior Vice President and Chief Audit Executive medal, Thirty Three Military Merit Medal, Two Military Civic Action Medal, Seven Military
of UnionBank. She is a Certified Public Accountant (CPA), Certified Internal Auditor (CIA), Commendation Medal, and Ten more assorted medals making him one of the few
Certified Information Systems Auditor (CISA) and has the designation of Certification Navy Officers who received more than 50 different medals throughout his Naval Career.
in the Governance of Enterprise Information Technology (CGEIT). On top of these He is a graduate of the Philippine Military Academy Class of 1987 and obtained his master's
certifications in the field of internal audit and information technology, Mrs. Amahan degree in Management (Public Administration) from the Philippine Christian University.
is a qualified internal audit external validator, having undertaken the necessary training
as well as passing the required exams. As qualified external validator, Mrs. Amahan Irma M. Lasquety holds the position of Senior Vice President and COO/Acting Trust
is certified to conduct quality assessment of internal audit units as required Officer of UnionBank. She has a solid experience, specializing in the overall management
under the International Standards for the Professional Practice of Internal Auditing. of global transaction operations under the Trust Department/ Asset Management from
both foreign and local banks. She was formerly served as Senior Assistant Vice President
She previously worked as supervising IS auditor at Equitable-PCI Bank from 1996 and Deputy Operations Head of BDO Unibank, Inc., a publicly listed corporation. Prior
to 2000 and was Head of the System Consultancy Services of the Commission on to this role, she was Vice President, Deputy Operations Head for Global Technology
Audit from 1993 to 1996. Also, while with the Commission on Audit, Mrs. Amahan Operations Asset Management of Deutsche Bank AG, Manila. She started her career
was among the government auditors sent to various United Nations agencies to conduct with Citytrust Banking Corporation, Inc. as Project Manager under the Trust Department.
information systems audit. Mrs. Amahan graduated Magna Cum laude with a degree
of Bachelor of Science in Commerce Major in Accounting from the University of San Carlos. Ms. Lasquety is a Certified Public Accountant and a Registered Financial Planner. She holds
She obtained a Master’s degree in Public Management from the Development Academy a Bachelor’s Degree in Accounting from Philippine School of Business Administration.
of the Philippines in 1994.
Member: Trust Committee
Jose Paolo G. Rufo holds the position of Senior Vice President, Chief Information Security, Ms. Chan holds a Bachelor of Science degree in Broadcast Communication minor in
and Data Protection Officer of UnionBank. Mr Rufo is a Certified Information Systems Security Economics from the University of the Philippines – Diliman, Quezon City.
Professional and Founding Member and Treasurer of ISC2 Philippine Chapter. Prior to joining
the Bank, he was Head of Data Privacy and Information Security Governance, and formerly Dr. David R. Hardoon holds the position of Chief Data and AI Officer of UnionBank,
served as Head of Data Management and Development of Globe Telecom, Inc. (a publicly overseeing the data and innovation requirements for the whole Aboitiz Group.
listed company) from 2010 to 2018. He also served under the Government Service Insurance He concurrently serves as Senior Advisor to Singapore’s Central Provident Fund Board
System as the Head of SAP and Database Administration Unit from 2009 to 2010. and to Corrupt Practices Investigation Bureau. He also sits as Independent Non-Executive
Director for Auto & General Services – Southeast Asia; Data Analytics Advisory Board
Mr. Rufo graduated with the degree in BS Statistics from the University of the Member for Singapore Management University; Advisory Board Member for Sim Kee Boon
Philippines - Diliman. Institute; Executive Education Fellow (Artificial Intelligence) for National University of
Singapore; and Honorary Senior Research Associate for University College London.
107
Joselynn B. Torres holds the position of Senior Vice President and Chief Compliance Prior to joining the Bank, he was Chief Data Officer for Monetary Authority
and Corporate Governance Officer of UnionBank. With over thirty years of experience of Singapore and subsequently as Special Advisor (Artificial Intelligence).
in the financial and compliance services industries, working in the areas of business
development and mergers and acquisitions, audit, compliance and quality assurance, Mr. Hardoon brings with him years of experience in business and data analytics,
most of which were spent in the banking sector. She was the Business Development artificial intelligence, and machine learning. He holds a PhD in Computer Science
Head of City Savings Bank, Inc. (a UnionBank subsidiary), heading the product development in the field of Machine Learning from the University of Southampton. He graduated
function and assisted in the microfinance business acquisitions. As Senior Vice President, from Royal Holloway, University of London with a Bachelor of Science degree

she previously handled Business Development, in charge of mergers & acquisitions, in Computer Science with Artificial Intelligence.
for Philippine Bank of Communications (PBCOM), a publicly listed company; and Compliance
and Audit responsibilities for Citibank N.A. Philippines and ABN AMRO, responsible for the Vishal Kadian holds the position of Credit Cards and Personal Loans Head of UnionBank.
promotion of control and compliance awareness among the employees of the organization. He previously served as the Head of Credit Cards and Unsecured Lending of Citibank
Philippines. From August 2018 – July 2021, he was Unsecured Lending Head of Citibank Korea, Inc.,
Atty. Buenaventura S. Sanguyo, Jr. holds the position of Vice President, Deputy Head and served as Cards Portfolio & Lending Head of Citibank Philippines from January 2014
of the Legal Division and Assistant Corporate Secretary of UnionBank. He is also the to July 2018. He also worked with Cards Product in Citibank Australia and has held various
Corporate Secretary of various subsidiaries of the Bank. Prior to joining the Bank, roles in Citibank India such as Deputy Branch Manager, Regional Credit Card Manager –
he was the Assistant Vice President and General Counsel of The Philippine Stock Exchange, Inc., Unsecured Lending, and Operation Head – Automobile Loans.
a publicly listed company, from 2012 to 2015. He was previously a Partner at Castro Sanguyo
Margarejo and Rosas Law Office. He was also engaged as an Associate of Reyes Francisco Mr. Vishal is a graduate of BBA from EMPI Business School and holds a Masters’ Degree
& Associates Law Office and Senior Tax Consultant at Isla Lipana & Co./ Pricewaterhouse in MBA from T.A. Pai Management Institute.
Coopers. He graduated Cum Laude from the University of Santo Tomas with a degree
in Bachelor of Arts in Political Science and obtained his Law degree from the University Erwin Wiriadi holds the position of Chief Risk Officer of UnionBank. Prior to this role,
of the Philippines. he was the Director and Head of Consumer Risk Management of Citibank N.A. Philippines
from 2017 to 2022. He also held various capacities relating to risk management in Citibank
Therese G. Chan holds the position of Head of Wealth and Brokerage of UnionBank. N.A. Indonesia for over 20 years. He held Senior Credit Officer entitlement since 2005
She serves as Director of Citicorp Financial Services and Insurance Brokerage Philippines, Inc., during his stint in Citibank N.A. Indonesia and had international exposures through
and as Chairman of Citifinancial Holdings Corporation. Prior to joining the Bank, she was risk reviews/audits and short-term assignment. Mr. Wiriadi graduated from Ohio State
Retail Bank Director of Citibank N.A. Philippines. She also held various roles with Citibank University with a degree in MSc Industrial and Systems Engineering.
N.A. Philippines such as Sales & Distribution Director from 2016-2019, and Senior Vice
President for S&D Cards Sales Head (2012-2015) and CitiPhone (2010-2011), among others.
109

U
nionBank’s corporate social responsibility program is aligned with the In 2022, our CSR connected its thrust to the overall sustainability mission to “Tech Up”
Bank’s overall digital transformation strategy and is guided by our policies on the Philippines. The Bank believes that it has a vital role and responsibility in building
sustainability and corporate social responsibility. strong and resilient communities by leveraging on the successes of UnionBank in
innovation and digital transformation. The Bank focused in the areas of e-commerce,
We see our CSR programs as contributors to the global movement on providing solutions education tech, and climate tech (community wellbeing and environment).
to the Sustainable Development Goals of the United Nations.
Driven by this, we pursued strategic CSR partnerships with organizations and institutions
Our CSR programs will focus on five goals: SDG 1 (No Poverty), SDG 4 (Quality Education), that align with our advocacy on innovation, which is geared towards bringing to life
SDG 8 (Decent Work and Economic Growth), SDG 13 (Climate Action, and SDG 9 (Industry, our Group Purpose of “co-creating innovations for a better world.”
Innovation, and Infrastructure). Most importantly, we see our CSR initiatives as incubators
of innovation where we both create a positive impact on the community.
CORPORATE SOCIAL
RESPONSIBILITY INITIATIVES
110
We achieved more milestones in 2022, namely: • Project Per@parasyon

This is the Bank’s advocacy on financial literacy and practical wealth
CitySavings’ Teacher Care Programs management for public school teachers.
CitySavings is committed to providing capability-building opportunities and • Project Pink
enabling educators to teach and touch the lives of learners nationwide. In 2022, A breast cancer awareness program for teaching and non-teaching staff,
CitySavings teacher training capabilities, and learning resources to promote that provides an avenue for correct information on the prevention and
financial education, build disaster resilient communities, and advocate health early detection of breast cancer.
and wellness. They were able to help 580 beneficiary schools, and Department • Project #BetterMe
of Education division and regional office nationwide. There were 4,500 DepEd Mental wellness program for the education of our frontliners, in partnership
attendees nationwide on financial, health, and wellness programs. CitySavings’ with MentalHealthPH, that enables them to care for their mental wellbeing.
CSR programs last year included:
Continued partnering with the Development Academy of the Philippines (DAP)
• Brigada Eskwela to develop webinars and learning sessions on digital transformation designed to
This DepEd core program is actively supported by CitySavings to train a new batch of government executives and local government officials.
complement DepEd’s Basic Education-Learning Continuity Plan. Various
stakeholder engagement programs that focus on the health and safety of
the school community for the opening of classes are constantly developed
and needs per region, per division are targeted specifically to ensure quality
education is provided to all.
111

Partnered with Pasig City in hosting the 3rd global Climathon, which allowed the The Bank is leveraging on its in-house centers of excellence in Data Science and Artificial
bank to support participants in designing solutions to the wicked problems of Intelligence, as well as its UBPXcellerator program to equip internal and external talents
our society. In 2022, UnionBank awarded innovation prizes to the most innovative with emerging capabilities. The Bank’s UBPXcellerator program has been making an
solution on key socio-economic and environmental problems of the city. impact through developing digital talents, with the aim of building up the capabilities
of Filipino workers and making them tech-ready for emergent digital landscapes.
Furthermore, GoBeyond Communities remains to be the Bank’s main corporate social UBPXcellerator focuses on educational institutions by enabling education partners
responsibility intervention. It is an employee engagement program where employees can to increase talents that will bring about innovations and game-changing products.
promote their personal advocacies by conceptualizing, developing, and implementing
community-enriching programs, with funding provided by the Bank. In 2022, the Bank’s UBPXcellerator had provided courses and educational programs on digital skills
employees had recorded 2,428 volunteers, 83,162 beneficiaries, reaching a total of such as blockchain, data science, and artificial intelligence to 16,209 individuals as
1,326 communities. In implementing its People Tech initiatives, the Bank aims to of December 31, 2022. As of the same date, UBPXcellerator has 136 modules offered
help employees, partners, and other stakeholders develop digital literacy and build the to the public for free.
skills to prepare them for the future.
SUSTAINABILITY Implement inclusive business programs and initiatives.
AT A GLANCE Engage internal and external stakeholders for

continuous improvement and to promote cooperation.
112
Sustainability at a Glance
The UnionBank Sustainability Policy outlines commitments aligned with the Bank’s
purpose to co-create innovations for a better world and its mission to Tech Up Pilipinas
by focusing on digital transformation, sustainable finance, and inclusive prosperity.
Foster the development of in-house learning,
Sustainability Policy management capacity, and leadership on
UnionBankers contribute to sustainability by pursuing digital transformation and investing sustainability issues.
in relevant social and environmental programs, which benefit all stakeholders. UnionBank
powers the future of banking by co-creating innovations for a better world. UnionBank
commits to:
Comply with all national laws and regulations.
Uphold, protect, and respect the environment,

human rights, and labor standards.
Communicate transparently about our sustainability

performance.
Contribute to enhancing positive social and
environmental impacts.
Sustainability Governance
Led by the Chairman and CEO, all UnionBankers are responsible for upholding the
Provide products and services that contribute to Sustainability Policy. The Sustainability Unit monitors all sustainability programs and
the well-being of people, the environment, and the reports to the Environmental, Social, and Governance (ESG) Technical Working Group and
economy; reduce or avoid unsustainable practices; Management Committee for support and guidance. The Board Committee on Corporate
and demonstrate positive impacts to the most Governance oversees all ESG matters.
important issues of the business.
113
SUSTAINABILITY AT A GLANCE
UnionBank Sustainability Framework Sustainability Scorecard

The Sustainability Framework complements the Sustainability Policy and provides
guidance on how to identify, develop, implement, and pursue programs and
2020 2021 2022
initiatives that enhance the Bank’s sustainability performance. The framework
focuses on three pillars—People, Planet, and Purpose—to align the sustainability
agenda with the Bank’s strategy. Moreover, the ESG mission of ‘Teching Up’ the Employee Count   5,177 7,290 7,784
country is expressed in three focus areas: Digital Transformation, Sustainable
Finance, and Inclusive Prosperity. All these distinguish UnionBank from other banks,
enabling it to truly innovate and improve lives.. Average Training 22.79 (UBP) 27.57 (UBP) 16.69 (UBP)
(in hours) 25.38 (CSB) 61.64 (CSB) 15.89 (CSB)
Our framework focuses on three pillars: People
114 Employee Volunteerism (in
5,418 5,800 8,924
Hours)
We ensure that our stakeholders are empowered
PEOPLE to #OwnTheFuture, fueled by our culture to collaborate
with like-minded partners to support sustainable 4.39 for UBP 4.41 for UBP 4.41 (UBP)
communities. Employee Engagement Score
4.49 for CSB 4.45 for CSB 4.52 (CSB)
We believe that UnionBank’s employees form the lifeblood

of the company. We invest in their personal and professional 57,632.90
Energy (in GJ) 39,978 89,834.328**
growth by ensuring the highest standards in talent (Restated)*
attraction and retention, career development, health and
wellness, providing meaningful volunteering opportunities,
and building a culture of sustainability so that they become GHG (in TCOe) 8,387.62 12,823.96* 210,110.07**
the Bank’s ambassadors in the communities we serve.
Water (in m3) 68,546 130,521 311,641.91

We will push for innovative thinking in designing products
PLANET and modeling programs that result to a sustainable way
of life. We are committed to managing our environmental LEED-Certified Branches 22 25 25
impact responsibly and delivering meaningful products and
services.
We recognize the need to operate differently to address the Paper (in reams) 44,185 17,800 13,093
threats of climate change and enable our stakeholders to
pursue a sustainable lifestyle. Planet
Ink Toners (in cartridges) 5,131 2,896 3,483
Recyclable Waste (Tonnes) 0.84 2.44 7.09**
PURPOSE We are industry disruptors seeking to transform banking

and financial services. Most importantly, we ensure that no
one gets left behind in our sustainability and digital Biodegradable Waste
1.01 2.36 7.00**
transformation journey. (Tonnes)
We act according to our core values to cultivate long-term

relationships with the people that Residual Waste (Tonnes) 1.05 2.63 6.94**
we serve. We believe that we can only aim for enduring
greatness if we can engage our customers and business
partners with genuine empathy.
Hazardous Waste (Tonnes) - 0.04 0.78**
The roadmap aims to take sustainability from compliance to culture, ensuring that
2020 2021 2022 everyone is on board. The plan includes complying with the BSP Circular 1085 by
defining the roles and responsibilities of the Board of Directors and integrating
ESG in the organizational structure as the initial, yet vital, step.
UB: 4.904 out of 5

New: UBP’s Net This is followed by cascading the roadmap to the whole Bank; adopting an ESG
Customer Service Satisfaction UB: 4.91 out of 5 Promoter Score Reporting standard; and updating policies involving Sustainability, Human Rights,
New:
Rating (scale of 5 as the CSB: 91% is at 90% Code of Conduct, Credit, Investment Policy, among others. The rollout also
CSB 90.80% using
highest) CSB: 99%
a 100 scale as the included sustainability learning and appreciation through the Bank’s capability
highest building programs and incorporating them in our culture program.
115
Digital Transformation – By developing innovative
Purpose
platforms, the Bank is able to contribute through
UBP: UBP: 11.61 million
investing in the future of the nation. This is fueled by
10.44  million
Number of customers served UBP: 16.04 million initiatives in digital capability building through internal
CSB: 871,680
(cumulative recorded deposits and external training as well as through innovation-driven
New: CSB (in loans and
and loan accounts) CSB: 1.01 million for the communities we serve.
9,637 customers deposits)

Sustainable Finance – The Bank understands its inherent
CSR Beneficiaries responsibility of moving capital and taking an active role
2,330,703 2,395,107 2,478,269
(cumulative) in mitigating environmental and social risks in all of its
financing activities. By lending to an ecosystem engaged
in commerce and local economies such as MSMEs and by
Note: UnionBank sources its water from a local water utility. The Bank does not recycle or reuse wastewater.
investing in technologies that enable financial inclusion,
*In 2021, data collection was improved to cover more branches nationwide. Increased electricity and water consumption for 2021 it contributes to a higher purpose of co-creating
was due to branches going back to normal operations after the pandemic. Electricity consumption for 2021 was restated with a 21% innovations for a better world.
increase due to clearer reassessment.
**The increase in 2022 consumption was due to the change from remote working to hybrid operations for units in the head office.
***Greater diesel oil consumption in 2021 was due to increased usage by motorcycle and other sales teams of CitySavings tasked
with client visits to process loans during the pandemic. For 2022, diesel accounted for 263,644.50 L and gasoline for 40,261.08L. Inclusive Prosperity – This focus area translates to the
overall impact of the Bank in terms of Sustainability.
From employment generation to digitally enabled
Filipinos and a number of communities empowered,
Tech Up Pilipinas Metrics
this focus area monitors how effective the measures
Tech Up Pilipinas embodies UnionBank’s sustainability strategy. It ensures that ESG is embedded
in place are in aligning the Bank’s ESG agenda with
in the overall business strategy as an integral part of the Bank’s digital transformation journey.
its business strategy.
It is about people, mindset, and culture, that allow the Bank to leverage its digital expertise and
continuous innovation. The ESG mission of ‘Teching Up’ the country is expressed through digital
transformation, sustainable finance and inclusive prosperity.
As Unionbank’s sustainability ambition aligns with the FOCUS 2030 digital transformation strategy, All these efforts will enable the embedding of ESG in the DNA of UnionBankers.
this roadmap will be in lockstep with the overall business goal of “teching up” employees and fellow
Filipinos to co-create innovations for a better world.
TECH UP PILIPINAS
HIGHLIGHTS
D
IG
Php 24.7 Million
Investment on LEED-certified
I T
branches and buildings
™
A L
27 LEED-certified
branches and buildings
™
T R A N S F O R
Php 24.32 Million 1,326 11.34 Million
Paperless transactions
Investment on employee Communities Served
from 29 in 2020 82.19% of branch transactions
development and training from 4.72 million in 2020
M
from 14.41 million in 2020
94 Programs 8,924
AT
on digital learning Volunteer Hours
Php 4.42 Billion from 29 in 2020 from 1,353 in 2020
Investment in innovation
136 Modules 83,162
I
more than 100
products and platforms offered to the public Beneficiaries
O
offered to customers from 70 in 2020 from 81,610 in 2020
from 1.9 billion in 2020
5.46 Million
Digital platform users
148.19 Million
Transactions N
442,711 new digital 119.49 million UB Online
accounts opened 17.36 million SME APP
from 3.1 million in 2020 from 14.8 million in 2020
S U
Php 2.70 Billion
Loans disbursed through
online lending platform
S TA
from 1.5 billion in 2020
I N
C L U
Php 93.68 Billion I N A B L E
Loans disbursed
Php 79.39 Billion
teachers’ loans disbursed
S I V E
Php 5.28 Billion
motorcycle loans disbursed
Php 1.56 Billion
SME loans disbursed
from 53.1 Billion in 2020
Php 47.08 Billion 120 Sign-ups

Economic value in Project i2i
plowed back to society Financial institution
P R
from 32 Billion in 2020 from 181 in 2020
F
Php 932 Million in deposits

Php 45.78 Billion 16,209 Filipinos Php 4 Billion in loans
I
investment in corporate educated by the
O
N A
social responsibility program UBPXcellerator program

from 2,159 in 2020
S P
75,008 Business owners 102 Rural banks
who are active users of onboarded in the 114,583 Signups
N
GlobalLinker business blockchain platform

management tool payment gateway
E
from 89 in 2020
C
from 48,000 in 2020 for e-sellers

from 98,000 in 2020
R
E
90,000+ MSMEs
7,784 Employees registered on SME Business
I T
from 5,177 in 2020 Banking Platform (total number
of micro and SME customers)
from 38,000 in 2020
1,588 Outsourced
Y
personnel and contractors SENTRO
employed by the Bank
from 1,576 in 2020 36,564 Signups
online shop builder
from 30,000 in 2020
ESG Risk Monitoring System Transition Plan Progress
UnionBank continues to enhance its environmental and social risk policy in line with Consultations were conducted from May to October 2020 to develop the roadmap to
the Bangko Sentral ng Pilipinas (BSP) mandate to develop a sustainable finance transition to ESG. The ESG Technical Working Group (TWG) was established in May 2020
framework (SFF). and consulted with Board of Directors, the Management Committee, Center Group Heads
and Leaders, and ESG consultants to develop and implement UnionBank’s Sustainable
From an Environmental standpoint, UnionBank adheres to BSP’s SFF mandate, Finance Framework to comply with BSP Memorandum Circular 1085.
learning from Aboitiz Equity Ventures’ climate value at risk methodology. Since the
Philippines is not a big carbon emitter, environmental due diligence is aligned with basic An enterprise-wide gap analysis was conducted, which provided baseline data for the
environmental standards as national development goals transition to ESG. From a Social roadmap. Through cadence meetings, the ESG TWG created the action items below:
standpoint, the Bank uses technology for social good and builds capacity to promote
118 inclusive prosperity. There is greater focus on establishing a sound and efficient credit Corporate Governance and Compliance: Institutionalize the adoption of
scoring methodology to encourage entrepreneurial growth among customers and small sustainability principles (inc. E&S Risk areas in the bank)
businesses. In Governance, UnionBank highlights the importance of cybersecurity as a Environment and Social Risk Management System: Develop an E&S risk
critical commodity sought by customers with direct impacts on the digital transformation management system or embed E&S risk management in existing documents.
strategy Unionbank continuously benchmarks practices with global standards and adopts Building Capabilities for Stakeholders: Promote a culture that fosters and
best practices to earn the trust of customers and suppliers. embeds environmentally and socially responsible business decisions
Sustainable Finance: Financial product or services that integrate ESG criteria
UnionBank currently lends to a wide pool of companies and projects, including those that into business decisions
may have E&S risks, that contribute to the country’s development plan. Understanding Communication Plan: Ensure transparent, updated, and comprehensive
clients’ approach to and improving their awareness of E&S issues is an important disclosure of Bank’s ESG performance
component of the risk management process. This allows the Bank to make informed Audit and Alignment: Audit and assess adherence to international sustainability
decisions, provide borrowers with guidance as they transition to sustainable operations, standards and requirements of Circular No. 1085
and safeguard clients’ long-term economic viability. The objective of the policy is to
manage the Bank’s lending business and its associated risks in a manner that balances the The circular essentially aims to integrate environmental, social, and governance topics
clients’ interests and the Bank’s safety and soundness. in the Bank’s strategic pursuits consistent with its size, risk profile, and complexity of
operations. The following diagram outlines the key requirements of the circular, which
must be established within a three-year transitory period.
1 2 3 4 5
GOVERNANCE POLICY RISK MEASUREMENT INTERNAL REPORTING AND
CAPABILITY DISCLOSURES
Defines the roles Sustainability/ Risk measurement tools:
and responsibilities ESG policy and Risk appetite, Credit Builds the internal Ensures regular,
ESG in framework Ratings, Stress Testing, capability that will reliable, and
organizational Portfolio monitoring help operationalize transparent
structure the sustainable disclosure and 119
ESRMS framework of the reporting of ESG
Bank performance
Management of ESG training of the SR as attachment to
E&S Risks Board SEC 17-A
A platform of policies
and monitoring tools
to help the Board and
Management in ESG
related decision making

Since 2020, policies, processes, and tools were created and updated to align with The Bank’s risk management approach is guided by the following principles:
the mandates of Circular 1085, and the Bank is on its way to completely embedding
sustainability objectives in the organization. Understanding the characteristics of the E&S risks and their impacts
on clients and the Bank
Using a science-based approach in developing the risk severity scale, which
Environmental and Social Risk Policy and Strategic Objectives captures the magnitude and frequency of risks
Setting practical and actionable risk controls to assess clients
The E&S policy is based on a two-pronged strategy. First, to mobilize finance Developing a due diligence tool that allows effective assessment and
for sustainable development by promoting financial inclusion, providing capital management of the risks without significantly affecting the transaction costs
for infrastructure, and providing finance for innovation and digital transformation. of the Bank
Second, to develop a sustainable finance practice by promoting market integrity,
assessing risks, and proposing mitigation programs to address risks, analyze
trade-offs, and build sustainable programs and transition plans for clients.
This is UnionBank’s contribution as the Philippines transitions to a more circular
economy as outlined in the Philippine Sustainable Finance Roadmap.
Overview of E&S risk management system UnionBank 2022 Social Bond Allocation and Impact Report
On July 23, 2021, UnionBank Issued a 7-year USD 150 million (P7.55 billion) Social Bond
The ESRMS Framework is anchored to the Bank’s philosophy and is based on 1085, 1128, with the International Finance Corporation (IFC) as sole investor.
and BSP Memo 2022-042. A sector and geographic-specific risk approach were used to
comply with BSP requirements and identify and characterize direct and indirect E&S risks The proceeds of the Social Bond shall be allocated exclusively to qualified Micro, Small
that can pose financial threats to the Bank through its clients. These risks arise when E&S and Medium Enterprises (MSME) loans, screened against the IFC eligibility criteria and
issues impact the creditworthiness of the client. exclusion list.
The E&S policy was continuously enhanced, and a third party vendor was engaged In the Philippines, MSMEs accounted for over 90 percent of businesses and over
to review the ESRMS and address gaps in the E&S policy to fully comply with BSP 60 percent of jobs pre-COVID-19, but MSME loans only accounted for less than 5 percent
requirements. The engagement concluded in January 2023 with a series of training of total bank loans in the country as of end-September 2022. Increased access to
sessions for all Bank staff directly handling E&S responsibilities. The enhanced E&S policy financing for MSMEs are critical to their continued recovery and inclusion, which in turn,
120 will be implemented starting April 1, 2023. The Bank is also integrating E&S risk into its can aid the economy in its path to recovery.
Internal Credit Risk Rating System (ICRRS), which will be rolled out for the
May 2023 portfolio. MSMEs have also been disproportionately impacted by COVID-19 and the Social Bond has
helped UnionBank boost financing for MSMEs primarily through its supply chain financing
E&S due diligence (ESDD) submission is currently monitored manually, and platform, enabled using digital technologies.
non-submission is a documentary deficiency subject to the guidelines of Credit and
Operations Risk Control. The E&S assessment identifies and documents E&S issues in the As of December 31, 2022, the Social Bond Use of Proceeds Registry amounted to
client’s business operations and suggests timebound actions to bridge gaps or mitigate PHP 8.077 billion, representing 106.99% allocation to the gross proceeds of the
E&S risks. E&S Risk Officers monitor progress of these action plans on a regular basis and Social Bond.
report quarterly to the Risk Management Committee.
Allocation Reporting Statistics

The Operational Risk Management (ORM) manual was updated to include and assess E&S
operational risks. ORM included general risk statements for units directly involved in E&S 76.76% represent refinancing of outstanding loans while 23.24% are financing
activities for the Risk & Control Risk Assessment (RCSA). Creation of Key Risk Indicators of new loans
(KRI) are also ongoing to conduct frequent monitoring of risk exposures. Incident Reports With the use of proceeds being exclusively for MSME loans, 100% belong
and Risk Treatment Action Plan are also in place. The ORM unit enhanced their capacities to the Employment Generation Social Project Category
by attending E&S focused events and training the Unit Risk and Compliance Officers
(URCOs) in the quarterly URCO meetings. Impact Reporting Statistics
Proceeds of the social bond financed 4,221 MSME loans
Note: SGV performed a limited assurance engagement on the Use of Proceeds of the Social Bond
as of and for the period from year ended December 31, 2022.
Breakdown of E&S Risk Exposures of the Bank per industry or sector No critical E&S risks assessed in 2022 that were not mitigated from our existing pool
Based on our E&S review, top industries in terms of outstanding balance are real estate of clients, hence, no impact to the Bank. Similarly, there were also no E&S operational risks
development, holding companies, and roads & bridges. Complete breakdown is as follows. highlighted in 2022.
Other initiatives to promote adherence

O/S Balance
Industry % O/S to internationally recognized sustainability standards and practices
(in PhpMM)
UnionBank continuously reviews existing disclosures in the Annual and Sustainability
Reports to ensure that the new ESG elements and metrics are communicated in a timely
Real Estate Development 18,713.9 18.9%
manner. It also assesses the relevance and effectiveness of ESG reporting standards like
the reporting frameworks of the Global Reporting Initiative (GRI), International Integrated
Holding Company 17,229.1 17.4%
Reporting Council (IIRC), Sustainability Accounting Standards Board (SASB), Taskforce on
Climate-Related Disclosures (TCFD), and the recently developed reporting framework of
Roads and Bridges 16,647.0 16.8%
the World Economic Forum (WEF).
121
Gaming and Leisure 12,872.4 13.0%

UnionBank is also aware that international ESG Raters measure and monitor how the
Bank adapts to changes in the regulatory landscape. Accordingly, UnionBank uses past
Telecommunications 11,780.9 11.9%
ESG performance, gathered through disclosures and indicators, to manage Environmental
and Social risks. As ESG Raters develop proprietary methodologies based on best ESG
Energy 8,881.1 9.0%
practices, various international ESG standards, and legislations, UnionBank aims to
improve its ESG ratings by measuring and monitoring its sustainability performance.
Infrastructure 3,403.0 3.4%
Sustainability Learning and Appreciation Courses

Manufacturing 3,124.5 3.2%
UnionBank prepares employees on ESG issues and sustainable finance by developing
ESG courses and training programs and incorporating these into the bank-wide learning
Construction 2,020.1 2.0% and development programs. Some of these courses include ESG 101, Introduction
to Sustainable Finance, and targeted learning sessions for relevant units who will be
Wholesale and Retail Trade 1,755.2 1.8% implementing products and processes related to the ESRMS. The rollout and schedules of
these trainings are based on priorities according to compliance, operation, and relevance
Air Transport 909.9 0.9% to developments in the market.
Mining 539.9 0.5%
Meat Processing 325.6 0.3%
Oil and Gas 278.0 0.3%
Water Utility/Water Sale 181.1 0.2%
Funeral Services 148.0 0.1%
Transportation and Storage 99.1 0.1%
Wastewater Treatment - 0.0%
TOTAL 98,908.8 100.0%
Information on existing and emerging E&S risks and their impact on the bank
PRODUCTS & SERVICES
CASH MANAGEMENT SERVICES Sponsorship Arrangements – Expanded Check Collections – Payroll

Sponsoring Electronic Money Issuers Reduce cost, receive comprehensive Payroll Suite – A one-stop shop
The Portal by UnionBank (EMI) with a guaranteed limit so they collection reports, and effectively for the convenient handling of
(Business Banking) can be direct participants in InstaPay collect your customers’ check corporate customers’ payroll needs:
An online cash management platform for and PESONet sending and receiving payments. UnionBank does all of these from account opening to account
corporate and business users to facilitate fund transfers. for you, giving you the time to focus maintenance. Payroll Suite includes
all their banking activities: initiate fund on your core functions and activities. a VISA-enabled debit card with a
transfers, pay bills, monitor balances, approve Collections Mobile Check Deposit allows customizable card design, digital
transactions with a single sign-on and many Bills Payment – A service that allows businesses to submit their check account opening, and electronic
more. Accessible via web or the mobile app clients to collect from their customers images online for deposit using crediting of payouts. Payees receive
(iOS and Android). or business partners through The Portal mobile app. SMS alerts upon payroll credits and
UnionBank’s extensive multi-channel Remote Check Deposit allows enjoy 24/7 online banking through
Disbursements facility: UnionBank Online and Mobile businesses to submit their check UnionBank Online.
Business Check – A standalone Application, branches, ATM, and images online and in bulk for deposit - Executive Payroll – A business
software that allows clients to prepare partner channels; using The Portal website class payroll card for corporate
122 and print checks. - Batch Bills – A service for Cash Mobilization – Use our executives.
Checkwriter Self-Service– processing multiple payments convenient cash collection and - Dollar Payroll – A dollar payroll card
A web-based facility that allows check as a batch transaction through delivery service for a more efficient designed for frequently travelling
preparation and printing and ensures UnionBank’s online portal that can cash flow management. employees to save on foreign
security in issuing checks via online be approved anytime, anywhere Secure.Pay - Currently a closed-loop exchange fees.
approvals. - Auto-Debit Arrangement (ADA) – payment facility for ICTSI brokers that ePayroll –UnionBank refers the
Checkwriter Outsourced– Outsourced A facility that enables billers provides secure and real-time payment client to an accredited ePayroll
check preparation and printing to collect from corporate confirmation via an online channel. service provider. The service
through UnionBank for corporate and and individual UnionBank PSE Trade/Securities Clearing provider manages the client’s payroll
Manager’s checks. UnionBank can accountholders to be automatically Corporation of the Philippines computation requirements, inclusive
deliver the checks back to client or debited for their utility payments on (SCCP) – A fully automated system f of functionalities such as timekeeping
have the checks released using our their specified due dates or the settlement of trade payables and HRIS management (depending on
branch network. - PartnerPay – UnionBank’s expanded to SCCP monitored daily by a service provider’s capabilities).
Voucher Payout – An online platform over-the-counter collection facility dedicated team.
that allows quick and hassle-free made possible to reach rural and Unified Payment and Collection Government Payments
disbursement of payouts through unbanked areas through third-party Platform (UPAY) – A platform that Bureau of Internal Revenue (BIR)
UnionBank branches with the use of branch networks has several payment channels and – UnionBank accepts tax payments
vouchers. - PCHC PayGate – a payment facility offers a white-label page that billers/ via EFPS and ePayments. Over-the-
Electronic Fund Transfers – Transfer that utilizes the PESONet account- merchants can integrate in their own counter payments are also available.
funds to local and international banks to-account fund transfer. It allows app or website to start collecting Social Security System (SSS) –
in bulk. Transfers may be made using payment interoperability and payments. Channels available include Monthly contributions of SSS can
the following facilities: facilitates acceptance of payments UnionBank Online, PCHC PayGate, be paid online or over-the-counter.
- UB to UB – Real-time fund transfers from customers’ other local bank InstaPay, VISA / MC Debit and Credit Various loan payment types (i.e. salary,
to UnionBank accounts accounts accredited with PCHC Cards, EMIs, and over-the-counter calamity, emergency and educational
- PESONet – Peso transfers to local Payment Gateway. partners such as Cebuana Lhuillier, loans) may also be uploaded online or
banks Checkhouse – Safekeep your Palawan, and ECPAY counters. filed for payment at the branches.
- InstaPay – Real-time peso transfers Post-Dated Checks (PDCs) for Philippine Health Insurance
to Bancnet member-banks with timely deposits. Use UnionBank Corporation (PhilHealth) – UnionBank
Php 50,000.00 limit Checkhouse for your PDCs and leave accepts payment of contributions via
- Philippine Domestic Dollar Transfer the monitoring to us. We keep the an online portal or over-the-counter.
System (PDDTS) – US Dollar transfers checks secure and help you track Home Development Mutual Fund
to local banks your PDC receivables efficiently and (HDMF) / Pag-IBIG Fund – Payment
- Society for the Worldwide Interbank electronically. for monthly contributions, short-term
Financial Telecommunication / multi-purpose loans, and calamity
(SWIFT) – Cross-border transfers to loans are accepted via bulk upload in
international banks an online portal.
Bureau of Customs (BOC) – Customs
duties and taxes may be paid online.
Cards Supply Chain Financing Merchant Platforms * UnionBank checks clears after two hours
Corporate Credit Cards – A credit A platform to support better cashflows Merchant Payment Gateway – even during weekends and holidays
card facility where companies can for your business community through Our UB Payment gateway provides API * Other banks’ checks, follows industry
charge expenses without using digital document presentment, receivables connectivity via website and mobile cut-off and clearing hours.
personal funds or going through the collection, payables settlement & instant applications enabling businesses to accept
hassle of cash advances. Corporate financing options credit and debit cards on a fast, secure and Securely manage your accounts
credit cards are issued to employees FSC Collect -An online facility reliable payment processing environment. * View all your accounts and credit card
who can charge company expenses that allows anchor suppliers to The platform offers a wide range of balances in one place.
while earning rewards points or collect receivables digitally from integration complexity and check out * Real-time monitoring of your savings,
rebates. buyers supported with Auto-debit, page customizability. checking or debit/ATM card activities
Government Service Insurance earmarking and self-service reporting * View your credit card spend, points and
System Unified Multi-Purpose ID functions QRPH (P2P, P2M, P2B) statements.
(GSIS UMID)/GSIS eCard – A card for Dealer Financing - A collection A QR code payment platform that allows * Lock/unlock, set limits and transactions
fast crediting of benefits and loans program for an anchor supplier with a merchants to accept payments (face to face controls on your Visa credit cards.
to GSIS members and pensioners. community-based closed-loop lending and online) from various e-wallet and online * Keep tabs on your loan repayments.
GSIS UMID also serves as a valid program for buyers as payment option banking applications. * Secured access enabled by OTP and 123
government ID. for their invoices. biometrics.
Social Security System Unified Payable Discounting - A disbursement * Self-service password reset and profile
Multi-Purpose ID (SSS UMID)/SSS program that allows the anchor buyer UNIONBANK ONLINE unblocking.
Quickcard – A card for fast crediting to host a discounting program for
of benefits and loans to SSS members enrolled sellers to get access to funds This is more than just another banking app,
and pensioners. SSS UMID also serves earlier, in exchange of a discount it puts your bank in the palm of your hand.
as a valid government ID. You don’t have to put your life on hold, as
Pag-IBIG Loyalty Card Plus - A loyalty Liquidity Management you can bank securely whenever you want
card and savings account for the Balance Viewing – 24/7 balance to, from wherever you want. Get started by
disbursement of Pag-IBIG proceeds. viewing and account management for opening an account in-app, without ever
Pag-IBIG Loyalty Card Plus can be corporate customers through online having to step into a UnionBank branch.

used for discounts in over 300 partner banking. Easily manage your accounts, your cards,
merchants nationwide. Account Pooling – A facility that transfer funds, pay your bills and more, with
Suy Sing Super Grocer Card – a Visa allows corporate customers to transfer just the tap of your finger.
debit card granted to Suy Sing grocers funds automatically between their
primarily used for purchasing Suy Sing UnionBank accounts at the beginning Open an account
grocery items wherein points can be and/or end-of-day based on specified * First Philippine bank that enables
earned and redeemed at any Suy Sing conditions. customers to open accounts through
establishments, POS, and online. Account Sweeping – A facility that the app.
Generic Corporate Prepaid Cards allows corporate customers to pool * No need to visit the branch.
(GCPC) - an INSTANT alternative card balances from their various UnionBank * Choose between Personal Savings
solution for our existing and potential accounts for disbursement purposes. Account, PlayEveryday, Savings+,
Corporate Clients (“CC”) which can SWIFT Reports – The UnionBank Lazada or Go Rewards.
offer a means for processing various MT940 is one of the few SWIFT * Get a Visa debit card delivered to your
disbursements not requiring a Peso-Compliant statements in the home/office.
full-service account Philippines. This completes the CMS * Immediately get a Lazada Virtual Debit
collections facility as it provides card for online shopping.
detailed and customizable reports that * Deposit checks 24x7
can be automatically integrated with
the client’s AP system.
PRODUCTS & SERVICES
* Track your rank, view your points Other Features Trade Check Discounting – A facility Business Loan - A digital loan product
and access the leader boards with * Activate your new credit card. offered to clients to finance working capital designed for SMEs for additional working
PlayEveryday. * Redeem your Credit Card points. requirements through the purchase of capital with a loanable amount of up to
* Create Goals and start saving up * Check for promos and discounts in our accounts receivable via Post-Dated Checks Php 1 million.
for that investment, emergency fund, (PDCs).
or whichever you aspire to achieve. Voucher Wallet BusinessLine Classic - a multipurpose and
* Do USD/Php conversion and view Foreign Exchange Line – A facility that is fully secured loan that offers a revolving
Easily Transfer Funds and Pay Bills real-time FX rates. granted to cover the settlement risk or credit line facility. With loanable amount of
* Transfer funds to anyone, to any bank, pre-settlement risk in the purchase or sale up to Php 10 million
any time, without any enrolment or going of foreign exchange. • Access funds via a regular checking
to the branch. LOANS account funded by BusinessLine
* Real-time crediting for transfers between Working Capital Line – A short-term credit • No need for Promissory Notes per
your accounts or other UnionBank Home Loan – a financing facility available facility to finance a company’s receivables availment
accounts. to clients for the purchase of residential or inventory requirements. The line may be • Available via Checkbook or Easy-access
* Transfer to anyone for free with properties where the security offered is the availed in peso or foreign currency. Debit Card (EADC)
124 PESONet. Same or next business day property being financed. • Accessible via UnionBank Online
crediting. Term Loan – A credit facility whose • No fixed terms
* Transfer up to Php 50,000 to anyone Vehicle Financing - a financing facility purpose is to finance the long-term financial • No minimum availment required
with InstaPay. Real-time crediting for available to qualified retail and corporate requirements of a client for business • Minimal principal payment
only Php 10. clients for the purchase of vehicles either expansion, such as construction of a building • One-time payment of documentary
for personal or commercial use. The credit or warehouse, acquisition of a property, stamps
Transfer your US Dollars to other local banks facilities are available for brand new, second- purchase of equipment or equity financing. • Interest is based on the number
for only USD 1! Made possible through PDDTS. hand vehicles and premium motorcycle The loan may be availed in peso or foreign of days used
* Pay your utility, phone, rent, school, segments and are secured by chattel currency. • Pay only for the funds used
and more. No need to enroll billers for mortgages.
payment. Project Finance Loan – A financing facility Supplier BusinessLine – a collateral-free
* Save accounts you frequently transfer Quick Loans – an all-digital access credit granted to a special purpose entity which working capital line for suppliers and
to and bills you regularly pay. facility that offers unsecured multipurpose is created to operate physical assets and contractors with checkbook and online
* Schedule recurring transfers and bills loans to clients. These are granted to where the principal source of repayment is access. Collateral-free line for up to
payments. No need to worry about due individuals on the basis of their regular salary the income generated by the assets being Php 10 million
dates. or other fixed compensation. financed. The loan is typically secured by a
* Send money to our partner Remittance pledge on the borrower’s shares, assignment BusinessLine for Medical Doctors –
Centers – Palawan Express, Cebuana Personal Loan - a product with a multiple of the borrower’s assets and/or assignment a revolving credit line available for doctors
Lhuillier, LBC & PeraHub. loan installment feature moderated by of project revenues/accounts/or documents. and medical practitioners of accredited
Auto-Debit Arrangement (ADA), salary The loan may be availed in peso or foreign hospitals
Request for Payments or Split Bills deduction or Post-Dated Checks (PDCs). currency.
* Send payment requests to another This is a standby credit line which can be used Payables Discounting Program –
UnionBank Online user with just their to avail of multiple installment loans within Special Funded Loan – A credit facility that a program available via the FSC Platform
mobile number. No more sharing of the credit line for different loan purposes such refers to the wholesale lending activities of where the Bank buys the payable (invoice)
account numbers. as home renovation, vehicle/home/furniture government banks or loan programs funded of the Anchor/Buyer and pays the Supplier
* Split bills with your friends on UnionBank purchase, emergency expense and others. by multi-lateral agencies, international or local at a discount
Online. No more worksheets to compute banks that are granted to participating financial
who owes who and how much. Domestic Bills Purchase – A facility that institutions for relending to end-users. Mass Market/MSMEs
* Generate your own QR code and have provides immediate or outright credit to
your friends scan the QR to pay. the client for local checks deposited to its UPAY for MSMEs
account for regular clearing. SME BANKING SOLUTIONS UPAY is a payment feature inside the
Schedule branch visit SME Business Banking app that allows
* Get ahead of the queue by scheduling Foreign Bills Purchase – A facility that Dealers Financing Line – A revolving credit business owners to collect payment from
your branch visit in the app. provides immediate or outright credit to client line for payment of inventory purchases their customers through multiple payment
* Transact without any forms or signatures. for its foreign-denominated checks that are designed for dealers and distributors via the channels (Instapay, Digital Wallets, Over-the-
Put all your transaction info on your deposited to its account for regular clearing. Financial Supply Chain platform. With flexible counter, credit cards) through a payment link.
scheduled visit. payment terms, assured payment of goods
* Find the closest branch or ATM with the with real time credits. Collateral-free based on
built-in locator. the average volume of the dealer.
The mobile application is available in both Export Packing Credit Line – An export Ateneo de Manila Team Energy Visa
IOS and Android that allows MSME business financing facility where loan advances are High School ’87 Visa University of Santo Tomas Visa
owners to transact and manage their made available to clients for the production of Ateneo de Manila Law Alumni University of the East Alumni
accounts wherever they may be. export goods to fill in a purchase order, sales Association Visa Association Visa
contract or Export Letter of Credit. Ateneo Graduate School of Business University of the Philippines Alumni
Merchant Acquiring - Payment Gateway Alumni Association Visa Association Visa
Export Bills Purchase Line – An export Cebu Kian Kee Alumni World Wild Fund for Nature
Our UB Payment gateway provides API financing facility where the bank purchases Association Visa (WWF) Visa
connectivity via website and mobile outright sight/usance drafts/or bills presented CEU Alumni Association Visa
applications enabling businesses to accept by the client. Colegio de San Juan
credit and debit cards on a fast, secure and de Letran Visa
reliable payment processing environment. Customs Duties Collection – A product offered Couples for Christ Visa
The platform offers a wide range of to importers and exporters to facilitate the De La Salle Alumni
integration complexity and check out page online payment of their customs duties and Association Visa
customizability. taxes thru One-Hub, debit to their account or De La Salle
via Manager’s Check. College of Saint Benilde Visa 125
USHARE De La Salle Dasmariñas Alumni
USHARE is a digital collection solution CREDIT CARDS Association Visa
powered by the UnionBank Payment Gateway De La Salle Lipa Alumni
to digitize foundations, non-profits, and faith- UnionBank Branded Cards Association Visa
based organization segments. UnionBank Classic Don Bosco Alumni Visa
UnionBank Gold Enderun Colleges Visa
UnionBank Platinum Free Masons of the Philippines Visa
TRADE SERVICES AND PRODUCTS UnionBank Corporate Card La Salle Green Hills Alumni
Association Visa
• Import Financing Co-Brand Cards Lourdes School Alumni
• Export Financing Burgoo Visa Association Visa

Cebu Pacific Gold People Management
Documentary Letter of Credit (LC) – Cebu Pacific Platinum of the Philippines Visa
A product offered to clients to guaranty Cebu Parklane Visa Philippine Academy
payment to a supplier upon the delivery of First Life Visa of Ophthalmology Visa
goods and upon presentation of complying Home Depot Visa Philippine Dental Association Visa
documents. Insular Life Visa Philippine Medical Association Visa
Lazada Mastercard Philippine Red Cross Visa
Stand-by Letter of Credit – A product offered Mapfre Insular Visa Sacred Heart School-Ateneo de Cebu
to clients to guaranty payment of an obligation Medicard Visa Alumni Association Visa
in case of failure of the other party to comply Racks Visa San Beda College Alumni Association
with the terms and conditions as stipulated in Riviera Golf Visa Silliman University Visa
a contract. Suy Sing Visa South Western University Alumni
The North Face Visa Foundation Visa
Bank Guaranty/Performance Bond – St. Paul’s College Pasig Visa
A product offered to clients to guaranty Affinity Cards Supreme Council Order
the fulfillment of a contract to a third party. Adamson University Visa of DeMolay Visa
Non-LC Transactions (Open Account, Alpha Phi Omega Visa
Documents against Payment, Document Assumption Alumnae
against Acceptance, Direct Remittance) – Association Visa
A product that facilitates the payment and Ateneo Alumni Association Visa
documentation of an importation other than
through a Letter of Credit
PRODUCTS & SERVICES
Cash Back DEPOSIT PRODUCTS Dollar Access Account – With initial deposit GSIS-Pensioner Account – This account was
UnionBank CashBack Gold and minimum deposit requirement of designed to accept pension credits and other
Mastercard Business Check – A check writing software USD 10,000.00 and required ADB of benefits such as loan availments and other
UnionBank CashBack Platinum which allows streamlining and simplification of USD 25,000.00 to earn 0.05% interest, this cash claims for GSIS pensioners and access
Mastercard the check disbursement process that comes account provides online banking access, comes to ATM, POS, Internet Banking & OTC
with an initial and minimum ADB of Php with a Dollar Debit Card, and has a maximum transactions with a maximum deposit
Specialty Cards 100,000.00 and a deposit insurance of up to deposit insurance of Php 500,000.00 per insurance of Php 500,000.00 per depositor,
UnionBank Miles + Platinum Php 500,000.00 per depositor subject to 20% depositor and subject to 15% withholding tax. subject to a 20% final withholding tax.
UnionBank Miles + final withholding tax. A Php 500,000.00 ADB With no initial deposit required, an account
PlayEveryday Credit Card is required in order to earn interest of up to ePaycard – Payroll savings account opened may earn 0.10% interest p.a. for a minimum
0.10% p.a. for employees tagged under the umbrella ADB of Php 100,000.00.
Former Citi Cards account of a corporate customer. This account
UnionBank Reserve Visa Infinite CMS Corporate Checking Account – Corporate is used for disbursement of employees’ salary LTNCD (Long-Term Negotiable Certificate
UnionBank Miles+ Visa Signature cash management solution with a minimum credits. Insured up to maximum deposit of of TimeDeposit) – Minimum investment of
UnionBank Rewards Visa Platinum of Php 50,000.00 initial deposit and ADB Php 500,000.00 per depositor and is subject Php 250,000.00 in increments of
126 UnionBank Cash Back Visa Platinum requirement that allows 0.10 % p.a. interest for to a 20% final withholding tax and may Php 50,000.00 thereafter with original
UnionBank Z Visa Platinum at least Php 100,000.00. This account comes include fees for ATM and OTC withdrawals. maturity of 5 years and six months with interest
UnionBank Shell Visa Platinum with a maximum of Php 500,000.00 deposit Php 100,000.00 ADB is required in order payments made every quarter. UnionBank
UnionBank Shell Visa Gold insurance per depositor and is subject to 20% to earn 0.10% interest p.a. LTNCD due 2023 carries a fixed coupon of
UnionBank Mercury Visa Gold final withholding tax. 4.375% p.a. LTNCDs cannot be pre-terminated
UnionBank Reserve Mastercard World FleetCard – Closed loopcard-based savings but can be sold in the secondary market, subject
Elite Corporate Executive Payroll Checking Account account for corporate clients used for the to prevailing market rates and transaction fees.
UnionBank Miles + Mastercard World –This account is for clients availing of the Cash disbursement of their gas allowance. It has access
UnionBank Cash Back Mastercard Management Solutions Payroll Suite which is to ATM balance inquiry and POS transactions First Savings - A savings account designed
Titanium used for crediting salary to their executives in selected gas stations and is insured up to for minors up to 17 years old. Initial deposit
UnionBank Rewards Mastercard with the flexibility to issue checks. a maximum deposit of Php 500,000.00 per and maintaining balance required is
Platinum depositor with no initial deposit required. Php 100.00. To earn interest, customers
UnionBank Z Mastercard Platinum A Php 50,000.00 initial deposit and minimum must maintain at least Php 5,000.00 in the
UnionBank Grab Mastercard Platinum ADB requirement with a tiered interest rate Go Rewards – Internet-based deposit account account. Insured up to a maximum deposit
UnionBank “Skywalker” of 0.10% p.a. interest for deposits with at least that comes with a debit card and earns points of Php 500,000.00 per depositor and subject
Php 100,000.00 ADB subject to 20% final for every peso spent which can be used for to 20% final withholding tax.
withholding tax. Cebu Pacific flights. This account can be
DEBIT CARDS opened without an initial deposit but will Personal Savings Account - With no initial
Corporate Payroll Checking Account – require deposit or maintaining balance required, this
Go Rewards Debit Card This account is for clients availing of the Cash is the easiest way to get a savings account.
ePaycard Management Solutions Payroll Suite which is Php 10,000.00 ADB to earn 0.10% interest p.a. It can be opened through UnionBank Online
E-Wallet Card used for crediting salary with the flexibility to and a deposit insurance coverage of up to or in any branch. Balance to earn interest is
Lazada Debit Card issue checks. A Php 50,000.00 initial deposit Php 500,000.00 per depositor, subject to 20% Php 10,000.00, with an interest rate of 0.10%
Platinum Debit Card and minimum ADB requirement with a 0.10% p.a. final withholding tax. p.a. Insured up to a maximum deposit of
PlayEveryday Debit Card interest for deposits with at least Php 100,000.00 Php 500,000.00 per depositor and subject
Suy Sing Super Grocer Card ADB subject to 20% final withholding tax. GSIS-MemberAccount – This account allows to 20% final withholding tax.
USD Debit Card crediting of GSIS benefits to their members and
Corporate US Dollar Payroll Savings Account access to ATM, POS, Internet banking & OTC Peso Hi-Five – Minimum of Php 50,000.00
– Savings account for Cash Management transactions with a maximum deposit insurance long-term (5 years plus 1 day) placement
VISA PRE-PAID CARDS Solutions Payroll Suite clients used for dollar- of Php 500,000.00 per depositor. Subject to a with interest compounded annually wherein
denominated salary crediting with no initial 20% final withholding tax. With no initial deposit payment of interest is made at the end of
Club Balai Isabel deposit requirement and comes with a required, an account may earn 0.10% interest p.a. term with principal deposit, tax-exempt (for
DI BA Agents Card 0.10% interest p.a. for an ADB of at least for a minimum ADB of Php 100,000.00. individuals only) if maintained until maturity.
Go Rewards Pre-paid Card USD 2,000.00, subject to 15% final If pre-terminated, final proceeds will be net
Go Rewards Pre-paid Virtual withholding tax. of applicable withholding tax on the interest
Semicon Loyalty Card earned and penalty rate based on
pre-determined rates.
Peso Optimizer – Minimum placement of Premium Deposit Account – Initial deposit SSS-Member Account – This account allows US Dollar Savings Account – With an initial
Php 50,000.00 for 2, 3, 4, or 5 years plus 1 day of Php 500,000 and ADB requirement of crediting of SSS benefits to their members deposit of USD 500.00 and minimum ADB
with interest credited monthly to a UnionBank Php 3 million to earn tiered interest of up to and access to ATM, POS, Internet banking & of USD 1,000.00 to earn 0.05% interest p.a.,
account net of withholding tax. Interest is 0.40% p.a., this account enables customers to OTC with a maximum deposit insurance of this account comes with a maximum of
subject to applicable withholding tax based manage their daily check disbursements while Php 500,000.00 per depositor, subject to Php 500,000.00 insurance per depositor
on tenor, while documentary stamp tax on the earning interest from their funds. Maximum of a 20% final withholding tax. With no initial subject to 15% final withholding tax.
deposit is at Php 1.50 for every Php 200.00 and Php 500,000 deposit insurance coverage per deposit required, an account may earn 0.10%
every fraction thereof. depositor with a 20% final withholding tax. interest p.a. for a minimum ADB of Php USD Time Deposit – Minimum placement
100,000.00. of USD 1,000.00 for 30-360 days with interest
Peso Time Deposit – Minimum placement of Regular Checking Account – With an initial and principal payout at the end of the term.
Php 50,000.00 for 30-360 days with interest deposit and minimum ADB requirement of SSS Pensioner Account – Account designed If pre-terminated, default interest rate to be
and principal payout at the end of the term. Php 10,000.00, our flagship checking account to accept pension credits for SSS pensioners applied is regular savings rate, currently
If pre-terminated, default interest rate to be simplifies and facilitates daily disbursement with no initial deposit and a Php 100.00 at 0.10% p.a. Interest income is subject to
applied is regular savings rate, currently at needs. This deposit product is covered up to minimum ADB requirement. To earn 0.10% 15% final withholding tax. This account comes
0.10% p.a. Interest income is subject to 20% interest, an ADB of Php 100,000.00 is with a maximum deposit insurance of
final withholding tax, while the deposit is Php 500,000.00 per depositor, and is not required. Php 500,000.00 per depositor. 127
subject to Php 1.50 for every subject to withholding tax.
Third Currency Savings Account – AUD, EUR,
Php 200.00 and every fraction thereof Regular Savings Account – With an initial GBP or JPY- denominated savings account
multiplied by number of days for documentary deposit and minimum ADB requirement with varying initial deposit and minimum
stamp tax. Maximum deposit insurance of of Php 10,000.00. This can be opened in balance required to earn interest depending
Php 500,000.00 per depositor. Peso time any UnionBank branch. Balance to earn on the currency and applicable final
deposit for tenors between 7-29 days is also 0.10% interest p.a. is Php 25,000.00. Insured withholding tax rate of 15% and a maximum
available for a minimum placement amount of up to a maximum deposit of Php 500,000.00 deposit insurance of Php 500,000.00
Php 1,000,000.00. per depositor and subject to 20% per depositor.
withholding tax.
PlayEveryday – The country’s first and only Third Currency Time Deposit – AUD, EUR, GBP

gamified program that comes with a debit Savings + - Account that offers free group life or JPY- denominated 30 to 360 days term
card and earns points thru savings, spending insurance from Insular Life. Eligible customers placement with varying minimum placement
and other digital transactions. Rewards can be can receive up to three times their last amount depending on the currency and
redeemed instantly thru the UnionBank Online reported ADB, up to a maximum life insurance applicable final withholding tax rate of 15%
app. This account requires no maintaining coverage of Php 3 million. Required average and a maximum deposit insurance of Php
balance and earns 0.10% interest p.a. with at daily balance, and balance to receive the free 500,000.00 per depositor.
least Php 10,000.00 ADB. life insurance, is Php 25,000.00. Balance to
earn interest is Php 100,000.00. Interest rate USD Optimizer – Minimum placement of USD
It includes a deposit insurance coverage of up is 0.10% p.a. A Visa debit card can be issued 10,000.00 for 2, 3, 4, or 5 years with interest
to Php 500,000.00 per depositor, subject to at the request of the customer. Insured up credited monthly to a UnionBank account net
20% final withholding tax. to a maximum deposit of Php 500,000.00 of 15% withholding tax. This account comes
per depositor and subject to 20% final with a maximum deposit insurance of
Power Checking Account – With initial withholding tax. Php 500,000.00 per depositor.
deposit and minimum ADB requirement of
Php 100,000.00 to earn tiered interest up to
0.25% p.a., this account allows maximization
of interest on extra funds and the flexibility
to issue check payments. Account has a
maximum Php 500,000.00 deposit insurance
coverage per depositor with a 20% final
withholding tax.
PRODUCTS & SERVICES
INVESTMENT PRODUCTS Bonds.PH allows clients to invest in various Income Funds, PHP & USD Fixed Income PRIVATE BANKING
bonds issued by the Bureau of the Treasury Funds, PHP Tax-Exempt Fund (for qualified
Peso Treasury Bills/Notes/Treasury Bonds – or BTr during the public offer period, without tax-exempt investors), PHP Balanced Fund, Access to Global Funds
Peso denominated fixed income securities the need for a bank account. The Bonds. PHP Equity Fund, PSE Index Tracker Fund, & Investment Strategies
issued by and which represent unconditional PH mobile app is available 24/7, and allows PHP & USD Capital Accumulation Global UnionBank Private Banking provides clients
obligation of the Philippine National investors residing abroad to participate in Fund of Funds. access to a wide array of Global Mutual Funds
Government with tenors ranging from a featured BTr issuance. As allowed by the and Exchange Traded Funds, upon inquiry.
3 months to 25 years. terms and conditions of certain issuances, Retirement Fund Management These global funds are assessed and reviewed
clients can also sell their investments UnionBank Trust and Investment Services by our in-house investments team in terms
Peso Tier 2 Notes – Peso denominated purchased from Bonds.PH. Group (TISG) helps institutional clients set up of their Sharpe ratio and Morning Star rating,
unsecured subordinated debt issued by banks. and manage retirement funds for the benefit among other metrics. Our strategic alliance
U.FX – A web-based foreign exchange (FX) of both the company and their employees. with Lombard Odier gives clients access to
Peso Corporate Notes – Peso denominated dealing platform with live executable rates for Pension and provident funds are cost- world-class investment strategies, with a
fixed income debt issued by large Philippine the branches and mobile app. The platform effective vehicles to fund, administer, and core-satellite investment philosophy.
corporations. allows for straight through processing of FX provide benefits committed to employees
128 transactions with competitive and live rates under company policy or by operation of Government Securities, Corporate Bonds,
Peso LTNCD – Long Term Negotiable not only for US Dollar to Philippines Peso, law. These plans allow the company to enjoy Money Market Securities, UITFs
Certificates of Time Deposit (“LTNCDs”) are but also for most major currencies. The U.FX tax benefits under the law, when managed UnionBank Private Banking gives clients
certificates of deposit which can be offered on the mobile application allows our clients to by a Trust. TISG provides administrative direct access to local investment outlets
to investors looking for a relatively safe transact their FX needs anytime, anywhere. convenience by delivering fund management such as Philippine Government Securities,
long-term investment with a higher interest and retirement plan administration services, US Treasuries, Corporate Bond Issuances,
rate compared to a regular savings or time considering the growth of the fund and the Common & Preferred Equities, UITFs, and
deposit. TRUST SERVICES client’s risk objectives. special rates on Money Market Instruments.
US Dollar ROP Bonds – US Dollar denominated Corporate & Institutional Personal Management Trust Asset Swaps
fixed income securities issued by and which Investment Management UnionBank Trust and Investments Services UnionBank Private Banking provides clients
represent unconditional obligation of the UnionBank Trust and Investment Services Group (TISG) acts as Trustee in managing structured products that will enhance the
Philippine National Government Group (TISG) acts as the Investment Manager a portion of a client’s wealth for the yield of their plain vanilla investment holding,
authorized to manage a corporation or an benefit of their designated beneficiaries. while taking into consideration credit, liquidity
US Dollar Local Corporate Bonds/Notes – institution’s funds according to their investment A Personal Management Trust (PMT) gives and other related risks that will impact the
US Dollar denominated fixed income debt objectives and risk parameters. TISG creates a the client convenient access to a wide investment.
issued by large Philippine corporations. structured and bespoke portfolio for the client array of investment products, that is highly
by choosing from a wide array of investment customizable. A PMT also allows TISG to Family Services
Foreign Exchange – Spots and Forwards - outlets (i.e. Government Securities, Corporate distribute the proceeds, interests and/or UnionBank Private Banking will help find
Converting one currency for another on either a Bonds, Common & Preferred Stocks, TDs, UITF, principal of the client to their beneficiaries, the optimal solutions to clients’ concerns
spot (immediate) or forward (future date) basis. Global Funds, etc.) within the terms and conditions established. on Family Wealth Structuring, Succession
Planning, Inter-generational Wealth &
Asset swaps -Instruments where the Unit Investment Trust Funds Escrow Agency Business Transition, Retirement & Estate
cashflows of an underlying asset are A Unit Investment Trust Fund (UITF) is an UnionBank Trust and Investments Services Planning, and Philanthropy & Sustainability.
exchanged for cashflows in another currency. open-ended pooled trust fund, operated Group (TISG) acts as an independent third We have legal, tax and cross-border expertise
and administered by TISG. A client invests party in an escrow arrangement. As an on wealth management matters. Our strategic
Cross currency swaps - Instruments where by purchasing units of participation in the escrow agent, TISG is responsible for the ally, Lombard Odier, also assists by sharing
the cashflows in one currency are exchanged fund, and is allowed invest or redeem their management of the escrowed assets, and their world-class family services expertise.
for another currency. investments at any time subject to guidelines releases the latter according to the terms and
set forth in the UITF Declaration of Trust. UITFs conditions stated in the escrow agreement Financial Advisory
are managed by professional fund managers provided by the contracting parties. UnionBank Private Banking will help
INVESTMENT AND TRADING and are invested in a diversified set of financial An escrow arrangement ensures the structure an optimal investment portfolio
PLATFORMS instruments such as money market securities, protection of the parties’ interests while for clients, taking into consideration their
bonds, stocks and global funds. ensuring compliance with the contractual return objectives and risk profile. An open
Bonds.PH – A fully digital bond distribution obligations. Assets held in an escrow may be architecture investment philosophy ensures
platform that allows clients to create an The following UITFs are available with in the form of cash, real estate properties, that clients will have the opportunity to invest
account, cash in from any bank, debit card UnionBank Trust and Investment Services and securities, among others. in best-in-class investment outlets, even
or electronic wallets like GCash or Paymaya. Group (TISG): PHP & USD Short-Term Fixed though they may not be UnionBank products.
FINTECH BUSINESS GROUP Partners Visa Spend Clarity
Weather Data by WeatherPH for Corporate Credit Card
Accounts Partner Paymaya Wallet
Sandbox Account Information Top Up The New Spend Clarity Feature within
Sandbox Account Balance Partner Coins.PH Wallet UnionBank’s Corporate Credit card
Sandbox Bank Account Top Up strengthens and elevates how corps can
Customer Account Transaction Partner EON Top Up manage, control and analyze their spending
History Cash Payout by DragonPay through a digital platform, data and
Partner Account Transaction History eGifts by GiftAway dashboarding. This will allow corporations to
Online Bank Account Information Business Financing by First Circle make better busines decisions.
eTreats by Share Treats
Authentications Airtime Credits by DT One The New Spend Clarity Feature within
UnionBank Customer Authentication Bills Payment by Direct Agent 5 UnionBank’s Corporate Credit Cards will
UnionBank Partner Authentication Credit Scoring by FinScore support businesses’ rising needs towards
One-Time Password Authentication Cryptocurrency Exchange by PDAX growth:
Signature Verification Salary Loan by Advance Tech 129
Lending 1. Digitize their manual processes to
Cards remain competitive and efficient
Credit Card Inquiry Payments 2. Have more controls and management
UnionBank Credit Card Application Customer Bills Payment on corporate spending
Go Rewards Debit Card Application Partner Bills Payment 3. Achieve greater insights on their
UnionBank Prepaid Card Customer Globe Load Purchase spend to for better business decisions
Partner Go Rewards Prepaid Customer Smart Load Purchase
Top Up Via I2C Partner Smart Load Purchase
UnionBank Credit Card Perks Partner Globe Load Purchase
UnionBank Debit Card Perks Merchant Payment from UnionBank
Account

Inquiries
Branch and ATM Location Transfers
Foreign Exchange Rate Customer UnionBank-to-UnionBank
Savings and Current Account Fund Transfer
Interest Rate Partner UnionBank-to-UnionBank
Time Deposit Interest Rate Fund Transfer
Biller Information Customer InstaPay Fund Transfer
Partner Instapay Fund Transfer
Loans Partner PESONet Fund Transfer
Auto Loan Calculator Customer PESOnet
Housing Loan Calculator Fund Transfer API
Customer UnionBank Loan
Application
Partner UnionBank Loan Payment
Overdraft Account
UnionBank Partner Overdraft Account
Loan Availment
PRODUCTS & SERVICES
Digital Busines Solution Referral Partners BLOCKCHAIN AND customized digital experiences for their own
API BUSINESS GROUP clients that is cheaper, faster and more secure.
It also allows partners to share and publish
Category Partner Solution
The Bank’s early forays into API, blockchain, their own digital services, alongside the bank’s
and digital assets enabled the bank to lay providing a single point of integration for APIs
Digital site for creation of E-commerce
E-commerce Platform Sentro within the platform.
platform down the groundwork for the banking
infrastructure of the future, making UnionBank
the market leader in the digital age and the This bank-grade API platform has to date
A financial merchant marketplace for
Business Loans SeekCapt first and only future-ready and digital-to-core already provided more than 100 partners a
capital financing or business loans
bank in the Philippines. After years of early secure and reliable collaborative workspace
research and experimentation, the bank now allowing them to incorporate banking
Digital tax filing platform for individuals services, and /or processes into their
Tax Filing Taxumo boasts of having the capabilities of the bank
and businesses
of the future, API-ready, Blockchain-ready, AI- value propositions, empowering them to
equipped, and now prepared to take the next create solutions and accelerate meaningful
Insurance Igloo Platform for non-life Insurance products leap into the Metaverse. innovations for their clients and consumers.
130
From the initial cryptocurrency offering of the Current API Marketplace Products:
PDAX Crypto Crytocurrency platform award winning UnionBank Bitcoin ATM, this
has since been furthered by additional virtual I. ACCOUNT INFORMATION
asset capability as it opened up additional Customer Account Number and Name
Micro-ATM cashout and payments solution; Verification - Provides verification of
service offerings this year to pilot customers.
Mobile ATM Cash out I2i merchants offering cash withdrawal and
Randomly selected UnionBank customers can account number and account name of a
accept card
buy and sell Bitcoin through the UnionBank UnionBank customer
Creation of customized tech platforms Online mobile app. Moreover, Digital Asset
Customized Tech Platforms UBX Tech Services Customer Account Status Verification -
from Apps, websites, etc. Markets Unit provides customers a convenient
way to enter the cryptocurrency and digital Provides verification of account status of
asset space safely and securely by offering a a UnionBank customer
virtual asset premium exchange and custody

Paymongo – end to end collection & Customer Account Transaction History
service via its OTC exchange service, another
disbursement solutions for MSMEs and - Allows retrieval of account transaction
first for a Philippine Bank.
fintechs
history from an individual UnionBank
Paymongo Current Virtual Assets Services: customer
Xendit – end to end collection &
disbursement solutions for MSMEs and Crypto ATM - Allows existing clients to buy
Xendit Customer Balance - Enables access
fintechs and sell Bitcoins for cash
Payment Gateways to account balance of an individual
Dragonpay
Dragonpay – over the counter payment Virtual Asset Exchange and Wallet Service in UnionBank customer
channels UBO App - Allows randomly selected clients
Bux
to activate UB crypto wallet, buy and sell Customer Birthdate Verification -
Bux – end to end collection & Provides verification of birthdate of a
Bitcoin directly debiting/crediting their UB
disbursement solutions for MSMEs and
Peso Savings account through the UB Online UnionBank customer
fintechs
mobile app
Customer Cards - Allows retrieval of
Virtual Asset Exchange Premium Service cards linked to a particular UnionBank
Instalment payment option for customers via OTC - Allows clients to buy and sell account
Buy Now, Pay Later Tendopay to purchase online without need to use virtual assets (ie BTC, ETH, USDC) through
debit or credit cards Customer Gender Verification - Provides
the Digital Asset Markets Unit OTC exchange
service verification of gender of a UnionBank
Logistics & warehouse management customer
Supply Chain Enabler Locad
system UnionBank’s award-winning API Marketplace
(developer.unionbankph.com), launched Customer Verification - Provides verification
in 2018, empowers businesses to embed of account name, account number, gender,
Credit Scoring and Fraud Detection; assist banking products and services into their own birthdate and account status
Credit Scoring Finscore
large lenders in evaluating their borrowers
digital applications, allowing them to design
Online Bank Account Information - Partner UBP Cash In - Facilitates cash in Partner Disbursement by UnionBank Credit Card Inquiry - Enables access
Allows retrieval of the last 4 digits of the or top up from UnionBank customers - Facilitates fund transfer for partners, to credit card information such as
account of the UnionBank customer built with smart logic that identifies best outstanding balance and other relevant
Payment Request via PESONet - Enables transaction type to use between UB-UB, information
Partner Account Transaction History - collection of payments thru PayGate Instapay and Pesonet depending on the
Allows retrieval of account transaction transaction details Prepaid Wallet by GetGo - Enables
history from a corporate UnionBank UPay by UnionBank - Enables collection access to customer profile, account
customer of payments thru UPay that is embedded Partner Instapay Fund Transfer - Enables balance, card status, transaction history
and customized to a partner’s application partners to facilitate fund transfer via and limit of GetGo Prepaid card
Open Banking - Enables access to or website Instapay from their UnionBank corporate
account balance, transaction history account to another bank Prepaid Wallet Transactions by GetGo -
and account information such as name, Pay to Merchant (P2M) / Pay to Biller Facilitates GetGo Prepaid transactions
gender, birthdate (P2B) - Facilitates creation of a QR code Partner PESONet Fund Transfer - Enables such as fund transfer, bills payment and
(QRPH) linked to UnionBank corporate partners to facilitate fund transfer via reversal
II. AUTHENTICATION account, where merchants or billers can Pesonet from their UnionBank corporate
UnionBank Customer Authentication - receive payments to. It also provides account to another bank Partner Prepaid Top Up via I2C - 131
Authenticates an individual UnionBank transaction reports to merchants or Facilitates top up transaction to Getgo
customer for a particular transaction. billers for monitoring purposes Partner UnionBank-to-UnionBank Fund Prepaid card
This also allows linking and unlinking of a Transfer - Enables partners to facilitate
UnionBank account through short-lived Merchant Payment Refund - Facilitates fund transfer from their UnionBank UnionBank Prepaid Card - Facilitates
or long-lived access tokens refund or reversal of a payment made by corporate account to another UnionBank top up transaction to Interblocks (IBL)
a UnionBank customer account prepaid card hosts
UnionBank Partner Authentication -
Authenticates request for access to a IV. DISBURSEMENT OF FUNDS PDDTS Transfer - Enables partners to
corporate UnionBank customer’s account Customer InstaPay Fund Transfer - facilitate fund transfer via PDDTS from
Facilitates fund transfers via Instapay their UnionBank corporate account to
One-Time Password Authentication from UnionBank customers to other another bank

- Allows partners to authenticate a banks
UnionBank customer through a RTGS Transfer - Enables partners to
One-Time Password (OTP) Customer PESONet Fund Transfer - facilitate fund transfer via RTGS from
Facilitates fund transfers via Pesonet their UnionBank corporate account to
III. COLLECTION OF FUNDS from UnionBank customers to other another bank
Auto Debit Arrangement - Enables banks
collection of recurring payments from a
UnionBank customer Customer UnionBank-to-UnionBank V. CARDS
Fund Transfer - Facilitates Peso fund UnionBank Credit Card Application -
Customer Bills Payment - Facilitates bills transfers from one UnionBank customer Facilitates submission of UnionBank
payment from a UnionBank customer to another UnionBank customer credit card application
Merchant Single Payment - Intrabank Fund Transfer - Facilitates GetGo Debit Card Application -
Enables collection of payments from Dollar fund transfers from one UnionBank Facilitates submission of GetGo debit
a UnionBank customer customer to another UnionBank card application
customer
Partner Bills Payment - Facilitates
bills payment for partners through
UnionBank’s biller platform
PRODUCTS & SERVICES
UnionBank Credit Card Perks - Provides Biller Information - Enables access to Cash Payout by DragonPay - Creates UBX
list of current UnionBank Credit Card UnionBank biller list and corresponding cash payout voucher to be claimed at
perks or promotions information DragonPay counters Aboitiz-backed Union Bank of the
Philippines spun-out UBX in 2018 to drive
UnionBank Debit Card Perks - Provides VIII. SUPPLY CHAIN FINANCE eGifts by GiftAway - Grants Giftaway financial inclusion and business growth for
list of current UnionBank Debit Card Partner FSC Payment - Enables loan electronic gift cards underserved and unbanked communities by
perks or promotions financing requests through blockchain offering fintech capabilities and ecosystem
Business Financing by First Circle - investments. UBX started as a venture
VI. LOANS IX. PHX STABLECOIN Facilitates business financing requests studio and fund. Now, UBX is the Philippines’
Auto Loan Calculator - Generates Partner Stablecoin Account - Enables for SME’s extra capital leading Open Finance platform, offering the
amortization projections for a UnionBank access to stablecoin account status and most extensive range of embedded financial
Auto Loan balance eTreats by Share Treats - Grants Share services and solutions with a fully-onboarded
Treats electronic gift cards network of the biggest and most reputable
Housing Loan Calculator - Generates Partner Stablecoin Generation - financial institutions and service providers,
amortization projections for a UnionBank Facilitates minting/top-up of stablecoin Airtime Credits by DT One - Sends airtime lenders, and payment channels in the country.
132 Housing Loan credits for local and international numbers
Partner Stablecoin Redemption - i2i is the Philippines’ fastest-growing banking-
Customer UnionBank Loan Application Facilitates burning/redemption of Bills Payment by Direct Agent 5 - as-a-service solution, bringing financial
- Enables receipt and submission of stablecoin Facilitates bills payment transactions to services to underserved communities through
personal loan applications Direct Agent 5 billers its network of financial services providers.
Partner Stablecoin Remittance - i2i has grown its transactions to 132%
Partner Loan Availment - Enables partner Facilitates off-chain remittance Credit Scoring by FinScore - Provides (5.4x growth) over the past 3 years as it
to receive and submit personal loan transaction of stablecoin applicant credibility insight through connects its customers to hundreds of
applications FinScore’s credit scoring financial institutions such as community
Partner Stablecoin Transactions - focused rural banks, cooperatives, pawnshops,
Partner Retail Loan Installment - Enables Provides status of stablecoin transaction Cryptocurrency Exchange by PDAX - Money Service Business, and remittance
availment of quick loan as well as Facilitates trading of cryptocurrencies centers with over 10,000 touchpoints,
checking of loan status Partner Stablecoin Transfers - Facilitates thru PDAX all over the country. i2i was launched
wallet-to-wallet transfer transaction of commercially in 2019 – with product offerings
Partner UnionBank Loan Payment - stablecoin Salary Loan by Advance Tech Lending - such as money transfers via PESONet and
Enables partner to receive loan payments Facilitates requests for salary loan from Instapay, Bills Payment, mobile ATM services,
for both UnionBank Auto and Housing X. OTHERS Advance Tech Lending API integration and more.
Loans Scorecard Models - Generates scorecard
using KNN model Digital Insurance Products by InLife SeekCap is the Philippines’ largest online
Overdraft Account - Enables creation - Allows purchasing of InLife digital lending marketplace made especially for
of an overdraft account for loan Account Credit Notification - Notifies insurance products micro, small, medium sized enterprises
applications customer on specific credit transactions (MSMEs) who need additional funds to run
thru SMS or email Digital Insurance by Igloo - Allows and scale their businesses. SeekCap provides
VII. INQUIRIES purchasing of Igloo digital insurance business loans with flexible terms, loanable
Branch and ATM Location - Retrieves list XI. PARTNERS products amounts ranging from Php 5,000 to
of current branches and ATM locations Weather Data by WeatherPH - Provides Php 20,000,000 with affordable monthly
current, historical and forecasted Grabpay Wallet Top Up - Facilitates top interest rates starting at 2%. At SeekCap,
Foreign Exchange Rate - Provides up-to- weather data up to Grabpay wallet we work closely with legitimate lenders,
date foreign exchange rates that can be credit bureaus, and channel partners that
used for the sale of foreign currencies Partner Paymaya Wallet Top Up - Cash Payout by Direct Agent 5 - Creates allow MSMEs to apply for a business loan from
Facilitates top up to Maya wallet through cash payout voucher to be claimed at a wide variety of loan products in the fastest,
Savings and Current Account Interest a UnionBank corporate account Western Union counters under Direct easiest, and most automated way available.
Rate - Provides up-to-date savings and Agent 5
current account interest rates Partner Coins.PH Wallet Top Up -
Facilitates top up to Coins.ph wallet Bills Payment by Multisys Technologies -
Time Deposit Interest Rate - Provides through a UnionBank corporate account Facilitates bills payment transactions to
up-to-date time deposit account Multisys billers
interest rates
BUx is an end-to-end payment gateway transformation. The use of Agile practices,
DIGITAL BANKING SERVICES OTHER SERVICES
and fintech solutions provider for businesses disciplines that are biased for speed, value
of all sizes that aims to provide a seamless delivery and sustainability are the key
UnionBank Online (Mobile and Web) Foreign/Domestic Collections and
experience to companies and sellers. capabilities that differentiate UBX from
The Portal (Mobile and Web) Remittances
Businesses and their customers can take traditional business consulting or technology
UnionBank SME Banking (Mobile and Web) • Fund Transfers
advantage of payment channels such as services.
POW PH (Mobile) • Manager’s Checks
over-the-counter, e-wallet, online banking,
Payment Gateway (Mobile and Web) • US Dollar Demand Draft
and buy now, pay later. With over 100,000 AKIN is a blockchain-based identity
• Peso/US Dollar/Select 3rd Currencies
sign-ups since its launch in 2019 and now management system wherein verified digital
Telegraphic Transfer
with over one million transactions a month, identities are shared across the platform for
• PDDTS (Philippine Domestic Dollar
BUx continues to make payments simple smoother and frictionless transactions such PRIORITY BANKING
Transfer System)
and easy. as leasing, loaning, and banking. The next
generation of UBX AKIN leverages the latest Business Class – A banking program for
Purchase and Sale of Foreign Exchange
Assured is the premier insurtech in the technologies and maturing self-sovereign UnionBank’s high-net worth clients that offers
Philippines, dedicated to revolutionizing identity standards to provide a compelling personalized service, exclusive privileges,
the insurance sector through its innovative solution to UnionBank for authentication relationship banking and smart solutions to
eligible individuals
133
suite of solutions. Assured’s offerings, using SSI credentials while adding value to
including InsurePay, Insure-Now-Pay-Later, the group through its UBX fintech unit.
ClaimAnywhere, and our Embedded Insurance Business Class Corporate – A variant of
Platform, prioritize customer satisfaction and Artifract is the country’s first tokenized non- the Business Class program where eligible
provide unparalleled flexibility, convenience, fungible token (NFT) platform. Artifract helps corporate clients are given specialized service,
and accessibility for premium payments and art estates, museums, private collectors, relationship banking and preferential pricing
claim benefits. and artists in the preservation of Fine Arts,
ensuring copyright of every piece, and Business Class for Doctors – A variant of the
Xpanse is the open finance platform of UBX. future-proofing collections. The platform Business Class program where doctors, via
Xpanse enables banks, fintech, and startups allows the community of modern-day art their HMO or hospital affiliation, are entitled to
to build new financial solutions through collectors to mint, buy, sell, and collect receive their professional fee credits through a
UnionBank account.

APIs and data sharing across thousands of exclusive Fractional NFTs by renowned fine
member institutions. APIs allow mobile apps, artists. UBX partnered with art-tech startup
websites, and external systems to share Unit 256 Ventures Inc. to launch Artifract,
back-end functionality and business logic. in the 3rd quarter of 2022.
This leverages UBX’s leading-edge cloud and
microservices technologies.
UBX Digital Transformation Services

combines years of experience in digital
transformation and leadership across Banking,
Capital Markets, Energy, Telecommunications,
Media and Manufacturing sectors
complemented by a business and technology
implementation team that can provide a
single source partner to deliver the digital
BRICK & MORTAR
METRO MANILA / 6754 AYALA AVENUE J P RIZAL PASONG TAMO-JTKC VALERO ICTSI
G/F PNB Makati Center 731 J.P. Rizal St. G/F JTKC Le Grand Condominium G/F ICTSI
GREATER MANILA Makati City
6754 Ayala Ave. Centre Bldg. 130 Valero St., Salcedo Village Administration Bldg.
AREA Brgy. San Lorenzo (02) 7503-8065 2155 Pasong Tamo St. Makati City Manila International
Makati City (0917) 827-0353 Makati City (02) 8819-5426 Container Terminal
MAKATI CITY (0917) 827-1132 (02) 7585-1044 (02) 7503-0522 MICT South Access Road
(0917) 826-6905 MAGALLANES (02) 7971-0213 (0917) 864-0269 Port Area, Manila
ANTEL RESIDENCES (02) 7215-7909 G/F Maga Center Bldg. (0917) 827-0373 (02) 7585-1265
G/F Antel Spa Suites (02) 7616-9974 Paseo de Magallanes (0917) 864-1258 VITO CRUZ (02) 8241-8303
7829 Makati Ave. Makati City Kingswood Arcade (0917) 827-0281
Poblacion, Makati City DELA ROSA (02) 8851-3803 PASONG TAMO Vito Cruz corner
(02) 7907-6756 G/F Insular Health Care Bldg. (02) 7971-0106 EXTENSION Pasong Tamo Streets INTRAMUROS
(02) 7623-8190 167 Dela Rosa corner (0917) 864-0439 G/F BCS Bldg. Makati City 409 G/F BF
(0917) 863-9637 Legaspi Sts., Legaspi Village Don Chino Roces Ave. (02) 7585-0980 Condominium Bldg.
(0917) 827-6545 Makati City MAKATI AVENUE Pasong Tamo Extension (02) 8899-2772 A. Soriano Ave.
(02) 8478-5509 7874 Makati Ave. corner Makati City (0917) 827-0391 Intramuros, Manila
AYALA AVENUE (02) 7968-8573 Durban St., Poblacion (02) 7971-0221 (02) 8404-1720
134 G/F Don Vicente (02) 7989-8260 Makati City (0917) 864-1065 (02) 7622-4467
Madrigal Bldg. (0917) 863-8891 (02) 7971-0316 CITY OF MANILA (0917) 827-0258
6793 Ayala Ave. (0917) 817-3235 (0917) 864-1561 PEREA
Makati City G/F Greenbelt Mansion CITYPLACE SQUARE LOURDES HOSPITAL
(02) 7968-8644 GREENBELT MULTINATIONAL BANCORP Perea St., Legaspi Village 3/F Lucky Chinatown- G/F Main Bldg.
(02) 7968-8747 G/F Twin Cities G/F Multinational Makati City Cityplace Square Our Lady of
(02) 7500-8183 Condominium Bancorp. Centre (02) 7219-1203 Calle Felipe corner Lourdes Hospital
(0917) 863-8792 110 Legaspi St. 6805 Ayala Avenue (02) 7618-5983 La Chambre St. 46 P. Sanchez St.
(0917) 863-8794 Legaspi Village Makati City (0917) 846-3785 Binondo, Manila Sta. Mesa, Manila
(0917) 863-8791 Makati City (02) 7971-0029 (0917) 863-9821 (02) 7261-4167 (02) 8713-8546
(02) 7577-7631 (0917) 863-9804 (02) 7968-2434 (02) 8968-6780
AYALA-RUFINO (02) 7585-0010 RADA (02) 7211-3901 (0917) 827-0879
G/F Rufino Pacific Tower (02) 8812-9601 PASAY ROAD Prince Bldg. (0917) 827-6546 (0917) 863-8597
6784 Ayala Avenue corner (0917) 863-9762 G/F Salud and 117 Rada St. (0917) 814-0306
V.A. Rufino Sts. (0917) 827-0376 Consuelo Bldg. Legaspi Village (0917) 821-7692 MALATE
Makati City 912 Pasay Road Makati City G/F Marioco Bldg.
(02) 7968-8763 H.V. DELA COSTA San Lorenzo Village (02) 7623-1487 DASMARIÑAS 1945 M. Adriatico St.
(0917) 863-8816 138 Global Enterprise Bldg. Makati City (0917) 863-9895 UnionBank Centre Malate, Manila
H.V. Dela Costa St. (02) 7624-1163 (0917) 860-4611 Manila Bldg. (02) 8525-2741
AYALA-SSS Salcedo Village (0917) 864-0163 (0917) 820-3052 Dasmariñas corner (02) 7971-0099
SSS (Makati) Building Makati City Q. Paredes Sts. (0917) 822-6342
Ayala Avenue corner (02) 7585-0977 PASEO DE ROXAS SALCEDO Binondo, Manila
V. Rufino St. (0917) 827-0380 G/F 111 Paseo de Roxas Bldg. Golden Rock Bldg. (02) 7968-2462 MASANGKAY
Makati City Paseo de Roxas corner 168 Salcedo St. (02) 7968-3119 911-913 G. Masangkay St.
(02) 8813-5992 INSULAR AYALA PASEO Legaspi St. Legaspi Village (02) 7968-2517 Binondo, Manila
(02) 7503-1464 (The ARK) Legaspi Village Makati City (0917) 821-8325 (02) 8241-5364
(02) 7698-8516 G/F Insular Life Bldg. Makati City (02) 7618-5545 (0917) 821-8533 (02) 7968-3511
(0917) 863-8840 Ayala Avenue corner (02) 7796-9057 (0917) 803-8622 (0917) 822-9479 (02) 7618-5520
(0917) 863-8878 Paseo de Roxas (0917) 146-2813 (0917) 860-9436
(0917) 827-0296 Makati City (0917) 859-9968 SAN AGUSTIN DELA COSTA ESCOLTA (0917) 863-7987
(02) 7971-0052 (0917) 860-9753 Liberty Plaza G/F Regina Bldg.
(02) 7971-0076 102 HV dela Costa corner Escolta, Manila
(0917) 863-9893 San Agustin St. (02) 7968-3324
(0917) 811-7577 Salcedo Village Bel Air (02) 7968-3411
Makati City (0917) 824-8609
(02) 7971-0005 (0917) 849-7273
(0917) 847-2852
MAYHALIGUE UNITED NATIONS AVENUE LAS PIÑAS GREENFIELD MARIKINA CITY RICHVILLE
G/F One Masangkay Place UN Avenue corner DISTRICT SOHO UGF Richville
1420 Masangkay near corner M.H. del Pilar and LAS PIÑAS - PAMPLONA Level 1, Unit 5 MARIKINA Corporate Tower
Mayhaligue St., Sta. Cruz, Manila M. Guerrero Streets Alabang-Zapote Road corner Soho Central WRC 2 Bldg. Madrigal Business Park
(02) 7586-3514 Ermita, Manila Crispina Ave., Pamplona Greenfield District No. 47 Gil Fernando Ave. Alabang Zapote Road
(02) 8252-5457 (02) 7585-9864 Las Piñas City Shaw Boulevard Midtown Subdivision II Alabang, Muntinlupa City
(0917) 863-8209 (02) 7971-0114 (02) 7971-0244 Mandaluyong City Brgy. San Roque (02) 7968-9615
(0917) 864-0477 (02) 7585-0838 (02) 8584-7538 Marikina City (0917) 859-9060
OTIS (0917) 827-0266 (0917) 864-1404 (02) 7968-6739 (02) 7971-0006
(formerly PANDACAN) (0917) 864-1191 (0917) 863-8592 (0917) 846-6341
1763 Paz M. Guazon St. VERTEX ONE – SAN LAZARO (0917) 864-1431 (0917) 827-0286 NAVOTAS
Paco, Manila G/F Space 12 & 13
(02) 7971-0082 Vertex One Bldg. LIBERTAD - MANDALUYONG MUNTINLUPA CITY NAVOTAS
(02) 8564-0537 San Lazaro, Manila MALABON Unit A2 Cluster El Dorado 807-817 M. Naval St.
(02) 7585-9845 (back of SM San Lazaro) California Garden Square ALABANG COUNTRY CLUB Sipac Almacen
(0917) 827-0355 (02) 7978-3602 MALABON Libertad St. G/F Alabang Country Club Navotas City
(0917) 864-0387 (0917) 827-0157 31 Rivera Street corner Mandaluyong City Acacia Drive (02) 7971-0245
Gov. Pascual Ave. (02) 7470-2743 Ayala Alabang Village (02) 7586-8269 135
STO. CRISTO YUCHENGCO Tinajeros, Malabon City (0917) 827-0765 Muntinlupa City (02) 8282-7504
LG01 and LG02 Burke Plaza Unit 2 and 3 (02) 7971-0199 (02) 7623-1960 (0917) 864-1165
Sto. Cristo St., Binondo, Manila Escolta Parking Bldg. (02) 7971-0201 SHAW MANDALUYONG (02) 7216-9702 (0917) 827-1180
(02) 8244-4284 Escolta St. corner (02) 7623-9571 PICPA Bldg. (0917) 864-0894
(02) 7616-2101 Yuchengco St. (0917) 864-0982 700 Shaw Blvd. (0917) 800-7121
(02) 7587-2980 Binondo, Manila (0917) 864-0998 Mandaluyong City PARAÑAQUE CITY
(0917) 827-0890 (02) 7586-7094 (0917) 827-0871 (02) 8724-2561 ALABANG TOWN CENTER
(0917) 863-8235 (02) 7623-9584 (0917) 827-0994 Makati Supermart Alabang BF HOMES
(0917) 827-0892 Alabang Town Center 55 President’s Ave.
TAFT AVENUE (0917) 863-8226 MANDALUYONG CITY ST. FRANCIS Muntinlupa City BF Homes Subd.
2625 G/F Kassel SHANGRI-LA PLACE (02) 7506-6689 Parañaque City
Condominium BONI AVENUE Tower 1 G/F (02) 8842-0496 (02) 7971-0192

Taft Ave. near corner CALOOCAN CITY 655 Boni Ave. corner Retail Internal Road corner (0917) 804-5785 (0917) 864-0952
P. Ocampo St. Ligaya St. St. Francis St., Brgy.Wack-Wack
Vito Cruz St. EDSA CALOOCAN Mandaluyong City Mandaluyong City AYALA ALABANG BICUTAN
Malate, Manila 512 EDSA corner (0917) 863-8517 (02) 7968-7429 G/F JD Tower 28 Doña Soledad Ave.
(02) 7971-0110 Urbano Plata St. (0917) 827-0987 (0917) 808-7814 Commerce corner Better Living Subd.
(0917) 864-0432 Caloocan City (0917) 827-0156 Acacia Avenues Parañaque City
(02) 7971-0277 EDSA - PIONEER Madrigal Business Park (02) 7971-0313
T. ALONZO (02) 7585-0998 UG7 Level 1 WACK-WACK Ayala Alabang (0917) 864-1576
625 T. Alonzo Street (0917) 864-1574 Robinson’s Cybergate Plaza 6 Shaw Boulevard corner Muntinlupa City
Sta. Cruz, Manila (0917) 827-0395 EDSA corner Pioneer St. S. Laurel St., Mandaluyong City (02) 7585-1038 DR. A. SANTOS
(02) 8736-9858 Mandaluyong City (02) 7906-9860 (0917) 827-0361 G/F MTF Bldg.
(02) 7587-6251 CALOOCAN (02) 8586-5348 (0917) 863-8748 Dr. A. Santos Ave. corner
(0917) 836-7203 357 Rizal Ave. Extension (02) 7477-4163 MUNTINLUPA Kabesang Segundo St.
Grace Park, Caloocan City (0917) 838-1197 12 Jayson’s Bldg. San Isidro, Parañaque City
(02) 7971-0222 (0917) 850-3263 National Road (02) 7623-2026
(02) 7971-0239 Putatan, Muntinlupa City (02) 7506-6716
(02) 7215-2281 (02) 7507-3068 (0917) 822-7644
(0917) 864-1355 (02) 7623-2028 (0917) 827-0899
(0917) 864-1098 (0917) 853-6378
(0917) 825-0142 (0917) 827-0971
BRICK & MORTAR
PASCOR DRIVE NEWPORT CITY MEDICAL CITY UNIONBANK PLAZA C-5 QC EASTWOOD CITY
G/F Sky Freight Center G/F Horizon Centre B1 The Medical Arts UnionBank Plaza Bldg. 184-B E. Rodriguez Jr. Ave. G/F Unit, LGR1-6
Ninoy Aquino Ave. corner Andrews Ave. Tower Bldg. Meralco Ave. corner Bagumbayan, Quezon City Le Grand Tower 1
Pascor Drive, Parañaque City Newport Boulevard The Medical City Hospital Onyx Road, Pasig City (02) 8638-1689 Palm Tree Ave.
(02) 8855-7748 Newport City Ortigas Avenue (02) 7211-8210 (02) 7968-8407 Eastwood City
(0917) 827-0544 Pasay City Pasig City (0917) 827-0559 (0917) 863-8830 Brgy. Bagumbayan
(02) 8556-8955 (02) 7618-4458 Quezon City
MEDICAL CENTER (0917) 864-0349 (0917) 864-0874 COMMONWEALTH AVENUE (0917) 866-7263
PARAÑAQUE QUEZON CITY 12-13, Upper G/F
G/F MCP Bldg. PASAY CITY ORTIGAS Diliman Commercial Center E. RODRIGUEZ
Dr. Arcadio Santos Ave. 2528 ERL Bldg. G/F The Crescent ACROPOLIS Commonwealth Ave. 1/F West Katipunan Bldg.
Sucat, Paranaque City Taft Ave., Pasay City Condominium G/F Bridgeview Bldg. Diliman, Quezon City 95 E. Rodriguez Sr. Ave.
(02) 7586-7637 (02) 8833-2959 29 San Miguel Ave. 171 E. Rodriguez Jr. Ave. (02) 7623-2616 Quezon City
(0917) 863-8216 (0917) 864-0387 Ortigas Center, Pasig City Bagumbayan, Quezon City (0917) 812-7274 (02) 8712-1331
(02) 7633-6443 (02) 7968-8858 (02) 7957-0117
WEST SERVICE ROAD (0917) 827-0556 (0917) 863-8798 COMMONWEALTH- (0917) 827-0983
136 Rodeo Bldg. PASIG CITY (0917) 827-0549 LUZON AVENUE (0917) 844-5314
Km. 18 West Service Road RENAISSANCE TOWER UGF, Kayumanggi Center Bldg.
South Luzon Expressway ADB AVENUE G/F Renaissance 1000 ALI MALL Commonwealth corner GMA-TIMOG
Parañaque City G/F Burgundy Empire Tower Meralco Ave. Level 2, Financial Center Luzon Avenues Unit 101 Cabrera Bldg. 1
(02) 7623-2029 ADB Ave. corner Ortigas Center, Pasig City Ali Mall, Araneta Center Brgy. Matandang Balara 103 Timog Ave.
(02) 7971-0003 Sapphire & Garnet Roads (02) 8584-8396 Cubao, Quezon City Quezon City Brgy. Sacred Heart
(0917) 863-2307 Ortigas Center, Pasig City (02) 7217-7210 (02) 7968-9010 (02) 8936-3621 Quezon City
(0917) 827-0974 (02) 7622-1031 (0917) 827-0461 (0917) 863-8817 (0917) 822-9949 (02) 8294-3281
(0917) 827-5992 (02) 7585-1669
SHAW BOULEVARD AURORA – BALETE DRIVE CUBAO (0917) 864-0896
PASAY CITY EMERALD AVENUE 131-133 Shaw Boulevard G/F Marsk Bldg. P. Tuazon St. corner
G/F Wynsum Corporate Pasig City Aurora Blvd. corner 7th Ave., Cubao, Quezon City KAMIAS
DOUBLE DRAGON MERIDIAN Plaza Bldg., Emerald Ave. (02) 7623-2126 Balete Drive, Quezon City (02) 7505-5824 G/F TDS Bldg.
G/F West Tower Ortigas Center, Pasig City (0917) 827-0558 (02) 7968- 7169 (02) 8912-1754 FAX 72 Kamias Road
Double Dragon (02) 7585-1008 (02) 8722-6327 (0917) 827-0292 Quezon City
Meridian Park (0917) 827-0552 SHAW-PASIG (0917) 863-8608 (0917) 842-7401 (02) 7617-7737
Macapagal Ave. corner G/F Chipeco Bldg. (02) 7978-3636
EDSA Extension FRONTERA VERDE Shaw Boulevard corner AURORA BOULEVARD DEL MONTE AVENUE (0917) 844-7400
Pasay City G/F Transcom Centre Meralco Ave., Pasig City 677 Aurora Blvd. 345 Del Monte Ave. corner (0917) 835-9075
(02) 8256-9611 Frontera Verde (02) 7502-2669 (near Broadway Centrum) Banawe St., Brgy. Manresa
Ortigas Avenue corner C5 (0917) 827-5832 New Manila, Quezon City Quezon City KATIPUNAN
GSIS Pasig City (0917) 831-0034 (02) 8725-1951 (02) 7968-8941 335 AGCOR Bldg.
GSIS Main Office (02) 7587-7981 (0917) 863-8496 (02) 7968-9060 Katipunan Ave.
Financial Center (0917) 823-2522 TEKTITE (0917) 863-8825 Loyola Heights
Pasay City G/F West Tower BAESA (0917) 863-8821 Quezon City
(02) 7971-0024 JULIA VARGAS Phil. Stock Exchange Center Dra. C. Pascual Bldg. (02) 7971-0306
(02) 7503-3397 G/F Centerpoint Bldg. Exchange Road 142 Quirino Highway (02) 8926-1768 FAX
(0917) 863-9785 J. Vargas Ave. corner Ortigas Center, Pasig City Baesa, Quezon City (0917) 827-0997
(0917) 863-9790 Garnet Road (02) 8638-8746 (02) 7618-9684 (0917) 864-1533
Ortigas Center, Pasig City (0917) 863-8706 (0917) 827-2511
MACAPAGAL (02) 7975-8398
G/F Y Tower (0917) 827-6165
Macapagal Ave.
Mall of Asia (MOA) Complex
Pasay City
(02) 8516-3473
(0917) 833-4019
MAYON SSS EAST AVENUE CAINTA, RIZAL TAGUIG BGC 38TH STREET MCKINLEY HILL
G/F ACI Bldg. G/F SSS Main Bldg. G/F Orion Building Units 1A& 1B Two World Square
178 Mayon St. East Ave. CAINTA 2ND AVENUE - BGC 11th Ave. corner 38th St. Upper McKinley Road
Sta. Mesa Heights Quezon City G/F CRV Bldg. G/F Blue Sapphire Bldg. Bonifacio Global City McKinley Hill Drive
Brgy. Maharlika (02) 7907-2329 F. Felix Ave. corner 2nd Ave. corner 30th St. Taguig City Fort Bonifacio, Taguig City
Quezon City (02) 7980-1413 Karangalan Drive Bonifacio Global City (02) 8624-4893 (02) 7968-4769
(02) 7617-7224 (0917) 863-8432 Cainta, Rizal Taguig City (0917) 838-0421 (0917) 827-0366
(02) 7211-5487 (0917) 827-6221 (02) 8646-0295 (02) 8519-0324
(0917) 864-0835 (02) 7968-9207 (0917) 827-0378 BGC MCKINLEY ROAD MCKINLEY WEST
(0917) 827-0459 TIMOG (0917) 827-0991 G/F Unit 1, Fairways Towers Lower G/F
Cabrera Building II 3RD AVENUE – BGC 5th Ave., Bonifacio Global City Robinsons Cyber Sigma Bldg.
MUÑOZ 64 Timog Ave. G/F Shop B Taguig City Lawton Ave., Bonifacio South
Muñoz Market Quezon City SAN JUAN The Net Square Bldg. (02) 8968-6368 Taguig City
EDSA corner (02) 7623-9567 3rd Ave. corner 28th St. (0917) 860-4713 (02) 8824-8027
Roosevelt Ave. (02) 8926-8636 ANNAPOLIS Bonifacio Global City (0917) 820-6845
Quezon City (0917) 827-1334 G/F Unit 133 Taguig City BGC THE LUXE
(02) 7623-1901 Promenade Missouri (02) 8810-1577 RESIDENCES 137
(0917) 827-0986 TOMAS MORATO Greenhills Shoping Center (0917) 818-2493 G/F Shop 3 VALENZUELA
(0917) 864-0897 Tomas Morato near Missouri corner Annapolis Sts. The Luxe Residences
corner Scout Lozano St. Greenhills, San Juan City 5TH AVENUE – GLOBAL CITY 28th St. corner 4th Ave. MALINTA
NOVALICHES - GULOD Quezon City (02) 7968-3940 Unit 103, G/F One Global Place Bonifacio Global City 292 Mirjan Bldg.
854 Quirino Highway (02) 8928-5801 (02) 8942-6282 5th Ave. corner 25th St. Taguig City Maysan Road
Gulod, Novaliches (02) 7216-2774 (0917) 863-8483 Bonifacio Global City (02) 8968-4403 Paso de Blas, Valenzuela City
Quezon City (0917) 804-9615 (0917) 827-0547 Taguig City (0917) 309-4779 (02) 7500-3879
(02) 7971-0266 (02) 8836-4872 (02) 7623-9570
(0917) 864-1332 VISAYAS - CONGRESSIONAL CARDINAL SANTOS (0917) 827-2502 BGC TRIANGLE DRIVE (0917) 800-5403
G/F WMG Building G/F, Cardinal Santos Shop 3, Philplans Building (0917) 827-0870
ROOSEVELT 47 Visayas Ave. Medical Center BGC 7TH AVENUE Corporate Center
244 Roosevelt Ave. Brgy. Culiat 10 Wilson St. G/F Twenty-Four 1012 North Triangle Drive VALENZUELA

San Francisco del Monte Quezon City Greenhills West Seven McKinley Bldg. corner Bonifacio Global City Km. 12 MacArthur Highway
Quezon City (02) 7504-4107 San Juan City 7th Avenue, 24th Street Taguig City corner Fatima Ave.
(02) 7971-0279 (0917) 842-7292 (02) 8234-0718 McKinley Parkway (02) 8622-4313 Marulas, Valenzuela City
(0917) 864-1500 (0917) 805-2916 (0917) 863-8550 Bonifacio Global City (0917) 863-8749 (02) 7585-0997
(0917) 864-1153 (0917) 827-3092 Taguig City (02) 7971-0217
WEST AVENUE - BALER (02) 8573-7281 BGC - UPTOWN PLACE MALL (0917) 864-1242
SANTO DOMINGO No. 91 Brgy. Bungad GREENHILLS (0917) 863-8494 Unit B106, Lower G/F (0917) 827-0393
G/F Elements Bldg. West Ave., Quezon City Ortigas Ave. near corner Uptown Place Mall
560 Quezon Ave. (02) 7907-9408 Wilson St., Greenhills BGC 32ND STREET 9th Ave. corner 36th St.
Brgy. Tatalon (02) 7971-0196 San Juan City G/F Trade and Financial Tower Bonifacio Global City
Quezon City (0917) 827-2501 (02) 7616-7108 32nd St. corner 7th Ave. Taguig City
(02) 7623-2318 (0917) 864-0957 (0917) 863-8574 Bonifacio Global City (02) 8968-8391
(0917) 861-2596 (0917) 827-0992 Taguig City (0917) 863-8761
(02) 8478-5876
SOUTH TRIANGLE (0917) 863-8342 BONIFACIO HIGH STREET
Quezon Ave. corner W Global Center corner
Scout Albano BGC 34TH STREET 30th and 9th Avenues
Quezon City G/F Shop 2, Panorama Bldg. Fort Bonifacio, Taguig City
(02) 7971-0091 34th St. corner Lane A (02) 8808-1166
(0917) 864-0454 Bonifacio Global City (0917) 863-8499
Taguig City
(02) 8833-211
(0917) 827-9070
BRICK & MORTAR
CENTRAL / DAGUPAN SUBIC CALAMBA - PARIAN NAGA METRO CEBU

NORTH LUZON G/F Insular Life Bldg. 19B Manila Ave. corner G/F Andenson Bldg. G/F Prime Days Hotel Bldg.
Arellano St., Brgy. Pantal Canal St., Subic Bay Bgy. Parian, Calamba Panganiban Drive CEBU A.S. FORTUNA
ANGELES Dagupan City, Pangasinan Freeport Zone Laguna Naga City G/F The Space
G/F Building 1, Unit 1 & 2 (075) 523-5575 (047) 252-9326 waiting for new number (0917) 864-0986 A.S. Fortuna corner
Central Town Mall (0917) 863-9715 (0917) 864-0749 P. Remedio St., Banilad
263 Fil-Am Friendship Highway DASMARIÑAS - CAVITE PUERTO PRINCESA Mandaue City, Cebu
Brgy. Cutcut, Angeles City LAOAG - SAN NICOLAS TARLAC Gov. D. Mangubat Ave. J.P. Rizal Ave. (032) 353-4382
Pampanga G/F 365 Plaza Bldg. Jaral Bldg., MacArthur Highway Congressional Road Brgy. Maningning (0917) 864-0539
(0917) 827-3254 National Highway corner Juan Luna St. Aguinaldo Highway Puerto Princesa City
Brgy. 1 San Nicolas Tarlac City Dasmariñas, Cavite Palawan CEBU - BANILAD
BAGUIO Ilocos Norte (045) 8982-6490 (046) 521-7962 (048) 434-2007 Unit 114 Banilad Town Center
Units PF-7 & PF-7A (077) 770-3771 (0917) 864-1348 (0917) 840-8102 (0917) 864-1037 Gov. M. Cuenco Ave.
PlazaFloor Cedar Bldg. (0917) 863-9703 (0917) 864-1496 Banilad, Cebu City
Gen. Luna corner Mabini Sts. IMUS - CAVITE SAN PEDRO (032) 353-4387
Brgy. Kabayanihan, Baguio City MEYCAUAYAN TUGUEGARAO G/F Melta Bldg. corner National Highway (0917) 864-0573
138 (074) 443-5658 G/F Marian Bldg. Bagay Road corner Sampaguita Village Brgy. Landayan
(0917) 863-9684 MacArthur Highway, Calvario Andrews St., Caritan Centro Aguinaldo Highway San Pedro, Laguna CEBU - BORROMEO
Meycauayan, Bulacan Tuguegarao City, Cagayan Imus, Cavite (02) 506-5983 Door 8 Plaza Borromeo
BALIWAG (044) 244-4566 (078) 844-3170 (046) 513-2155 (02) 868-8186 Borromeo St., Cebu City
G/F Units 3&4 (044) 233-5753 (0917) 864-0763 (0917) 864-0973 (0917) 864-0937 (032) 412-3401
3006 St. Augustine Square (0917) 825-0179 (0917) 864-0574
#17 Pinagbarilan St. (0917) 816-2712 VIGAN LEGASPI STA. ROSA
Doña Remedios AR Lahoz Bldg. G/F Unit 1, SMC Bldg. Rizal Boulevard corner CEBU INSULAR BRANCH
Trinidad Highway OLONGAPO Jose Singson St. Landco Business Park Zavalla St., Brgy. Malusak (formerly CEBU BUSINESS
Baliwag, Bulacan 87 Magsaysay Drive Vigan, Ilocos Sur Capantawan, Legazpi City Sta. Rosa, Laguna PARK)
(044) 766-2442 Olongapo City (077) 722-2046 (0917) 864-0980 (049) 250-5227 G/F Insular Life
(0917) 863-9692 (047) 602-2618 (0917) 864-0765 (0917) 864-1229 Cebu Business Centre
(0917) 863-9710 LIMA Mindanao Ave. corner
CABANATUAN Unit GC-R04 and R05 PASEO DE STA. ROSA Biliran Road
P. Burgos St. PAMPANGA SOUTHERN LUZON The Outlets G/F The Medical City Cebu Business Park
Brgy. Padre Burgos G/F Mel-V Bldg. LIMA Technological Center South Luzon Cebu City
Cabanatuan City Olongapo Gapan Road BACOOR Special Economic Zone Greenfield City (032) 353-4290
(044) 463-0490 Dolores, San Fernando Addio Bldg. Malvar, Lipa City United Boulevard (032) 353-4291
(0917) 863-9695 Pampanga Aguinaldo Highway (043) 236 7935 Brgy. San Jose (0917) 858-8573
(0917) 827-2875 Talaba, Bacoor, Cavite Sta. Rosa, Laguna (0917) 863-7970
CLARK (046) 512-9432 LIPA (049) 252-5834
M. Roxas Highway SAN FERNANDO, LA UNION (0917) 864-0948 B. Morada Ave. (0917) 864-1013 CEBU BUSINESS PARK
Philexcel Business Park G/F, Nisce Business Center Lipa City, Batangas SUMILON ROAD
Clark Freeport Zone Quezon Ave., Brgy. Catbangen BATANGAS CITY (043) 236-9159 TAGAYTAY G/F Buildcomm Center
Pampanga San Fernando, La Union G/F, University of Batangas Bldg. (0917) 864-1186 G/F Tagaytay Sumilon Road
(045) 499-5141 (0917) 821-5285 Highway Hills, Hilltop Prime Residences Cebu Business Park
(0917) 809-3519 Batangas City LUCENA Tagaytay-Calamba Road Cebu City
SAN FERNANDO, PAMPANGA (043) 722-1417 One People Square Prime Rotunda (032) 350-8299
CAUAYAN, ISABELA 3M Bldg. (0917) 864-0934 M.L. Tagarao St. corner Brgy. San Jose (0917) 810-8519
G/F Isabela Trade Center Bldg. MacArthur Highway Granja St., Lucena City Tagaytay City
National Highway San Agustin, San Fernando BIÑAN - CARMONA (042) 710-6538 (0917) 702-3001
Cauayan City, Isabela Pampanga National Highway (0917) 864-0985 (046) 513-2119
(078) 652-4401 (0917) 863-9742 Brgy. Maduya
(0917) 863-9707 Carmona, Cavite
SANTIAGO (046) 521-7961
Maharlika Highway (0917) 864-0950
Santiago City, Isabela
(0917) 864-7884
CEBU - EXCHANGE CEBU - MANDAUE CEBU - SUBANGDAKU ILOILO - GENERAL LUNA DAVAO QUIRINO ILIGAN
G/F Units D & E Kentredder Bldg. G/F Units 3&4 Brgy. Villa Anita Village Quirino Ave. corner Quezon Ave.
Cebu Exchange Tower A. Cortes St. A.D. Gothong I.T. Center Gen. Luna St. San Pedro Extension St. Brgy. Poblacion
Salinas Drive Mandaue City, Cebu Lopez Jaena St. Iloilo City Davao City Iligan City
Lahug, Cebu City (032) 353-4295 Brgy. Subangdaku (033) 504-5833 (082) 324-4417 (063) 302-2640
(0917) 874-9171 (032) 353-4297 Mandaue City (033) 504-5834 (0917) 864-0898 (0917) 863-9835
(0917) 863-8250 (032) 262-4616 (0917) 864-0852
CEBU - FUENTE (0917) 868-8276 (032) 262-4621 (0917) 864-0797 DAVAO - RIZAL PAGADIAN
G/F Rajah Park Place Hotel G/F & 2/F Sabado Bldg.
Fuente Osmeña Blvd. CEBU - MAXILOM CEBU - TIMES SQUARE TACLOBAN Quibod Commercial Complex Rizal Ave., Pagadian City
Cebu City G/F ONG TIAK Bldg. G/F Cebu Time Square 2 Bldg. G/F Tacloban Plaza Bldg. Rizal St., Davao City (062) 312-6798
(032) 353-4286 Gen. Maxilom Ave., Cebu City Brgy. Tipolo Justice Romualdez St. (082) 326-1149 (062) 214-1841
(032) 412-5133 (032) 353-4298 North Reclamation Area Tacloban City (082) 326-1181 (0917) 863-9676
(0917) 845-0852 (032) 353-4299 Mandaue City, Cebu (053) 589-3455 (0917) 864-1312
(0917) 863-8315 (032) 353-4307 (053) 522-7554 (0917) 864-1352 ZAMBOANGA CITY
CEBU - I.T. PARK (0917) 863-8331 (0917) 853-9210 (0917) 864-1304 G/F ZAEC Bldg.
GF101 TGU Tower (0917) 827-5962 Mayor Jaldon St. corner 139
Salinas Drive CEBU - MINGLANILLA BACOLOD - LACSON MINDANAO Gov. Alvarez St.
Asiatown IT Park G/F FCT Commercial Bldg. G/F Philamlife Bldg. TAGBILARAN Zamboanga City
Lahug, Cebu City Poblacion Ward II Lacson corner Galo Sts. 0041 JS Torralba St. BUTUAN (062) 312-5447
(032)324-7030 Minglanilla, Cebu Bacolod City Brgy. POB II G/F CAP Bldg. (062) 312-9565
(032) 316-5577 (032) 316-8763 (0917) 841-5969 Tagbilaran City, Bohol JC Aquino Ave. corner (0917) 861-4653
(0917) 863-8173 (0917) 805-4153 (0917) 818-9624 (038) 510-8150 J. Rosales Ave. (0917) 843-0423
(0917) 863-8196 (0917) 864-1340 Butuan City
CEBU NORTH DRIVE BACOLOD - NORTH (085) 304-6215
CEBU - LAPU-LAPU G/F North Drive Mall MANDALAGAN (085) 304-6216
MEPZ II Ouano Ave., NRA G/F Unit 101 METRO DAVAO (0917) 864-1520
Pueblo Verde, Basak Mandaue City, Cebu CODECO Bldg. (0917) 864-1521
Lapu-Lapu City, Cebu (032) 384-1927 Lacson St. corner Consuelo Ave. DAVAO - CABAGUIO

(032) 353-4293 (0917) 863-8355 Brgy. Bata, Bacolod City G/F Dmirie Bldg. CAGAYAN DE ORO - LAPASAN
(0917) 863-8203 (034) 701-7899 JP Cabaguio Ave. Lapasan National Highway
CEBU NORTH ROAD (034) 701-7900 Brgy. Paciano Bangoy Cagayan de Oro City
CEBU LAPU-LAPU G/F Khuz’ns Bldg. (0917) 864-0281 Davao City (088) 316-6864
NATIONAL HIGHWAY North Highway (0917) 863-8645 (082) 324-3732 (088) 316-6865
M.L. Quezon St. Estancia, Mandaue City (082) 324-5036 (0917) 807-0789
Lapu-Lapu National Highway (032) 353-4301 DUMAGUETE (0917) 806-9916 (0917) 863-5773
Pusok, Lapu-Lapu City, Cebu (0917) 863-8367 UnionBank Bldg. (0917) 827-4569
(032) 353-4305 Ramon Pastor Sr. St. corner GENERAL SANTOS - SOUTH
(0917) 863-8411 CEBU - PLARIDEL San Juan St., Dumaguete DAVAO - MAGSAYSAY G/F Sun City Suites
104 Plaridel St. Negros Oriental R. Magsaysay Ave. corner Digos Makar Road
CEBU MACTAN NEWTOWN Brgy. Sto. Niño, Cebu (035) 404-2588 E. Jacinto St., Davao City National Highway
G/F Retail 2&3 (032) 353-3129 (0917) 864-1244 (082) 326-1250 General Santos City
Plaza Magellan Tower 1 (032) 353-4302 (082) 326-1253 (083) 308-3487
Mactan Newtown (032) 255-0084 ILOILO - IZNART (0917) 864-1459 (083) 308-3776
Lapu-Lapu City (0917) 863-8374 Villanueva Bldg. (0917) 864-1457 (0917) 861-4935
(032) 342-2091 (0917) 860-9987 Iznart St., Iloilo City (0917) 864-1260
(033) 504-5827 DAVAO - MONTEVERDE
(033) 504-5829 G/F Mintrade Bldg.
(0917) 864-0791 Monteverde Ave. corner
(0917) 864-0849 Sales St., Davao City
(082) 324-6570
(082) 324-9321
(0917) 864-0974
(0917) 864-0970
MANAGEMENT DIRECTORY
PRESIDENT & CEO

Edwin R. Bautista
SENIOR EXECUTIVE VICE PRESIDENTS

Ana Maria A. Delgado Manoj Varma
EXECUTIVE VICE PRESIDENTS

Roberto F. Abastillas Mary Joyce S. Gonzalez Dennis D. Omila
Ramon G. Duarte Manuel R. Lozano Michaela Sophia E. Rubio
140 Antonino Agustin S. Fajardo Eric S. Lustre Johnson L. Sia
SENIOR VICE PRESIDENTS

Raymond Anthony B. Acosta Wilbert P. Casillano Gladys G. Enriquez Kenneth C. Mariano Maria Carissa A. Sindiong
Rene Alan M. Aguirre Luis Alberto A. Castañeda Edric B. Fernandez Ma. Eloisa Jovita M. Mariano Jose Paulo R. Soliman
Arlene Joan T. Agustin Mary Grace G. Catoto Marilou I. Ferrer Don Jerico B. Matriano Rahni R. Svenningsen
Penelope D. Ajero Efrenilo L. Cayanga, Jr. Norman C. Gabriel Wilfredo P. Montino, Jr. Mellany M. Sy
Francis B. Albalate Abigail Sarena T. Chua Rommel Jason L. Galang Dave T. Morales Ben P. Sy Chu
Myrna E. Amahan Ma. Eleonor E. Chua Christopher M. Go Edgar Allan G. Oblena Leslee May S. Tandoc
Brenda Ruth A. Angeles Luis Martin S. Clemente Erika Denise D. Go Christopher Patrick G. Ocampo Julian P. Tarrobago, Jr.
Jonnaluz B. Aranas Lesley Anne H. Co Enrique M. Gregorio Ma. Adelita N. Peña Cherrie L. Tinoko
Donald A. Asuncion Antonio Sebastian T. Corro Ramon Manuel A. Guinto Lauro P. Peralta Fides C. Tiongson
Aaron Jon D. Atienza Albert Raymond C. Cuadrante James Morris P. Ileto Ronaldo Jose M. Puno Ma. Cristina C. Tismo
Alan Jay C. Avila Ma. Theresa S. Daguiso Imelda G. Jayme Shen C. Ratilla Jo-Ann Fatima L. Tolentino
Maria Angelica C. Balangue Antonio Miguel D. Dans, II Mariano Dominick F. Lacson Maria Iraida B. Recto Menchie M. Tormon
Joselito V. Banaag Gerard R. Darvin Irma M. Lasquety Jose Maria O. Roxas Joselynn B. Torres
Conrad Anthony Dominic L. Banal Joebart T. Dator Adrian H. Lim Maria Katrina N. Roxas Sheila P. Umali
Ronaldo S. Batisan Julie Anne C. Dela Cruz Concepcion P. Lontoc Robin Emmanuel S. Roxas Maria Paz B. Urmatam
Mary Grace H. Bela Jonathan Jerald V. Deomano Cynthia J. Macasaet Jose Paolo G. Rufo Dominador N. Velasco, IV
Konstantin O. Beloglazov Montano D.m. Dimapilis Angelbert G. Macatangay Quintin C. San Diego, Jr. Jeannette Yvonne M. Zagala
Maria Cecilia Teresa S. Bernad Rolando P. Ebreo Michael P. Magbanua Raquel N. Sevidal
May G. Buencamino Carlo I. Eñanosa Kathleen Marie P. Malacad Gautam Sharma
Catherine Anne B. Casas Eduardo V. Enriquez, III Ana Jania F. Mañalac Christine V. Siapno
VICE PRESIDENTS
Corazon T. Alcantara Amor A. Cruz Adrienne G. Heinrich Caesar Antonino M. Ordoñez Pierre Emanuelle N. Santos
Nicolette Nellie S. Al-Hamadah Johanna Mae D. Cruz Shella Marie P. Hernando Melissa Lynn S. Pablo Renato Piccolo R. Sarmiento, Jr.
Jonathan Z. Almeda Heindrick Franell G. Cu Kaila T. Hizon Jose Paolo P. Palacios Sheryll Ann Y. Sobremonte
Christy Mae R. Almonte Maria Theresa S. Cunanan Rommel R. Ilunio Kristerjohn I. Palatino Michelle Gale O. Soliman
Ralph Sylvester E. Alo J. Vincent R. Daffon Maria Concepcion M. Isidro Leila P. Paz-Aguba Katrina Tanya P. Soncuya
Maria Jerusha J. Ambrosio Diana D. Dayrit Sairah Sedillo U. Kadil John Francis F. Pecaña Raymond Joseph F. Soncuya
Marc Nicholas S. Angeles Abigail M. De Guzman Jennifer Marie G. Ko Gaw Marlon Roy S. Pelayo Ma. Vanessa S. Sta. Ana
Erianne B. Ansaldo Gener P. De Guzman Carlo Ramon R. Jayme Pamela Geraldine P. Pepito Cecille P. Sta. Teresa
Elizabeth S. Apilado Hector C. De Leon Jacquelyn J. Jimenez Henry C. Perez Erika T. Sykat
Mayumi C. Aromin Carolina G. De Luzurriaga Anna Marie Samantha B. Lacorte Gillian Justine S. Pua Marilou A. Taino 141
Gerardo T. Austria Maria Eunice C. Dela Dingco Tracy S. Lim Philippe D. Quito Marnita J. Tan
Rosma M. Auza Romina R. Dela Torre Peter Agustin T. Lopez Praveen W. Ramankutty Michael Paul P. Tan
Anna Lea O. Axalan Niña Michelle A. Destacamento Reena April M. Lumba Edon V. Ramirez Elizabeth C. Tang
Rona S. Bautista Emmanuel C. Don Mattel Pamela Luna Mary Mae M. Ramizo John Michael C. Tang
Shiendy G. Benitez Jennifer A. Don Girly G. Magnait Jhoel P. Raquedan Karen Lynde Q. Tee
Rachelle M. Bernal Renee Lynn S. Dytuco Abhinav Mahajan Catherine C. Razon Martin James S. Tensuan
Dennies A. Bico Elliebeth Endaya Ma. Rowena F. Mallari Cyrus G. Rebueno Clyd Marvin S. Tito
Sheryll P. Biyo Rupert Anthony G. Enriquez Macklen A. Manaois Patrick John D. Resurreccion Geraldine A. Tirante
Aura Bernadette R. Bonzon Christine Anne P. Esguerra Maria Kristina M. Manlangit Anna Marie B. Reyes Romana M. Tiu
Joshua Eleazar T. Bosiños Jennifer F. Escasa Melisse Anne G. Martin Sheila Marie D. Reyes Serafin Benedicto U. Tongco, II
Grace Ann S. Bueno Liezl S. Faldas Clarissa Lourdes S. Matias Kristian Anthony M. Ricardo Mark Dennis C. Tuazon

Francis Caberoy Michaela D. Fernandez Anna Roxanne M. Matsuda Lou Angela I. Roco Inulli C. Ty
Gilbert A. Camitoc Micarella Mariz I. Gabriel David R. Medel Daryl Sol D. Rodriguez Sherryl B. Uy
Maria Cecilia R. Caperina Jessine Y. Gamo Mary Joy C. Mendez Michelle P. Rodriguez Anamarie O. Valencia
Diane Dominique O. Capili Jillian Q. Gatcheco-Cantada Eugene Christopher O. Monsod Maria Marissa P. Roquim Chester Dino B. Velasco
Vincent Paul M. Castillo Giovanni S. Gemanil Melanie R. Motus Joel V. Salvador Joann B. Velasquez
Margaret O. Chao Rachel Christine T. Geronimo Agnes Veronica S. Moulic Mylene S. Sanchez Leo Miguelito D. Villacrucis
Jan Patrick P. Ching Pamela Ann B. Gogna Miguel Carlos M. Nolasco Buenaventura S. Sanguyo, Jr. Camilla Natasha B. Villegas
Michael Vincent F. Condez Antonio Javier I. Gonzalez Lannie Y. Ocubillo Ma. Agnes R. Santos Jemima Gervic C. Vivo
Monica D. Cristi Jaypee E. Halagao Ana Margarita T. Oliveros Myla Angela A. Santos Catherine Y. Yulo
MANAGEMENT DIRECTORY
ASSISTANT VICE PRESIDENTS
Michelle Anne P. Abarquez Anna Liza B. Ayugat Jose Patricio F. Casas Niña Samantha S. David Daisy G. Escueta
Emelissa D. Abenir Kathlynn Ann L. Aznar Lea Beverly B. Casimiro Vi Maritoni V. David Irene C. Espanol
Amy P. Abes Jonathan Luis M. Bagadiong Donna Vittoria F. Castell Aaron O. De Asa Marjorie K. Espiritu
Morris Morel H. Abesamis Salvador G. Bagamasbad, Jr. Joseph M. Castillo Earl Walter Maxcy G. De Jesus Sandy C. Estrella
Maria Cristina D. Acta Michael Paul E. Bagsit Mildred B. Castillo Cyril F. De Leon Lynn Karen S. Fajardo
Jennifer Rose M. Alano Ma. Theresa T. Banzon Frederick C. Catahan Ramon M. Del Rosario Romeo V. Gabayeron
Darlene Angelini C. Alcasid Christian T. Banzuela Stacey Louie Y. Catalan Robert B. Dela Peña Arvin C. Gabriel
Sharlyn Veronica M. Alo-lambot Morris B. Baronia Ma. Nerliza A. Centeno Gerard Robin D. De Padua Maria Paz C. Galang
Rachel Ann G. Amandy Shekilah R. Bartolome Kelly T. Chan Karen T. Del Castillo Jacquelyn K. Galvez
142 Joyce C. Ancheta Ma. Rowena S. Basconcillo Darwin G. Chiong Keith Jacquilene B. Dela Cruz Jefferson A. Galvez
Roosevelt Nelson S. Ang Guia G. Bausa Demelle T. Chua Maria Armela L. Dela Cruz Patricia Joyce G. Gamboa
Mauro M. Angue, Jr. Ella Ruth C. Bautista Marlon P. Chua Marthaniel C. Dela Paz Anna Margarita A. Gapac
Ann Lilibeth M. Antiquina Jesusa Crisel L. Bernardino Jenille Stephanie N. Chuan Maria Cristina N. Dimaano Andrew Raphael L. Garcia
Hazel L. Antivola Wilfredo S. Bernardo Francis Gerald Ricardo S. Cifra Maureen Jonah D. Dimaya Pamela Jubaira C. Garcia
Jimmy S. Anyayahan Isabella Francesca R. Bondoc Matthew Gregory F. Cipriano Jorell S. Dimayuga Manuel S. Garing
Darlyn Lea Apolinario Roel C. Brion Marisse B. Co Jeanette T. Dimero Marlyn M. Garrido
Angelo Don D. Apongol Monica C. Buenaventura Franco Tristan E. Corral Ernesto P. Diño, Jr. Maria Carmela M. Gatmaitan
Ronald Gerard M. Arceo Arminda M. Cabacoy Susan C. Corral Jad Timothy P. Diosana Ma. Victoria P. Generoso
Nikko Rio C. Arevalo Abeegail M. Caberte Arnel L. Cortez Immanuel E. Doctor Juan Paolo P. Gingco
Cyril G. Arnesto Juancho L. Calayan Anna Marie C. Cruz Amiel Joseph S. Domingo Althea Charmaine R. Girang
Romeo Gabriel M. Aspera Tina Marie T. Calderon Gerardo O. Cruz, Jr. Robert Conrad D. Dueñas, Jr. Camacho
Joan Lorraine D. Asprer Maria Angelica A. Calimlim Justine Timothy P. Cruz Joseph Raymond M. Dungca Abby Jayne C. Go
Anna Claret F. Asuncion Valyne A. Calma Sigrid Joyce D. Cruz Norie Fe R. Dy Arnica Mae Go
Rachel P. Asuncion Christer Van B. Camacho Maria Concepcion M. Cueto-Galleon Paolo M. Elemos Natalie Rayma R. Godoy
Ruben Carlo O. Asuncion Michelle C. Caoile Ma. Lourdes Eloisa T. Cunanan Gerand Boy O. Elinzano Franchesca C. Gomendoza
Karen O. Aunzo Sally Grace M. Cardenas Maria Cecilia C. Danganan Maria Soledad B. Encarguez Bronell C. Gonzales
Alvin Bernard O. Aure Dandelo R. Cardona Marc Paul G. Dantes Benise Christine Endencia Enrique D. Gonzales, III
Basille Alicesandra L. Avelino Delver Albert E. Carillo Melchor Victor F. David Gerard Chester J. Enriquez Anna Beatriz Gonzalez
Paul C. Guadalupe Mary Grace C. Lledo Margarita F. OrdoÑez Ramon Mariano R. Rodriguez, Jr. Mahalia A. Tecson
Ma. Roshciel O. Guanlao Anne Kristine V. Lotino Patricia Anne M. Pablo Iris Monica D. Rodrillo Francis Albert B. Tionko
Patrick Joseph O. Guevarra Arlene S. Lubo Maria Isabel S. Padillo Rachelle R. Rogel Robertson B. Tolentino
Rene R. Guillergan, Jr. Jenni Rose I. Lurian Maria Rosenette A. Pagunsan Irene Z. Roman Lenikarr Maria B. Tud
Melvin S. Guinto Paolo Gabriel A. Macabuag Ria Marie S. Pajado Christian Gregorio N. Rubio Kristine A. Ubaldo
Jose Ciceron Lorenzo A. Haresco Maria Cielito M. Magbanua Jacquiline D. Palacios Nikki Ann E. Sac Aida T. Ungay
Adriano T. Hipolito Nicejoy E. Manalaysay Robert M. Panganiban Rodylen C. Sacala Ysabel Jacqueline A. Urrutia
Angelica Elaine E. Honasan Donna May S. Mandap Anna Katrina G. Pangilinan John Basil O. Sace Karina Aileen B. Valdezco
Michael Patrick R. Ibarra Alvin D. Marana Jerrica B. Pastor Joanne L. Salandanan Emmanuel Thomas Gerard O. Valeña
John Philip A. Ignacio Riza D. Marasigan Nino Paolo C. Peralta Mary Ann Claire B. Salazar Derrick M. Valenzuela 143
Barbara Anne G. Ilagan Louie Jane M. Marcelo Lennie P. Perez Edwina L. Salvador Leilani D. Valle
John Paulo B. Inciong Michaela Andrea V. Marfori Maria Joanna J. Perez Wilhelm S. Samson Kristine P. Valsadera
Corito Maria D. Isberto Maria Christina R. Marquez Neben D. Perez Essen A. Sangalang Felix Martin S. Villanueva
Amabelle Gay P. Jimenez Michael Cecil B. Martinez Jolly A. Punongbayan Francesca Celine B. Sangalang Melinda E. Villareal
Carlota P. Jose Norman D. Mascariñas Colleen Faye M. Puspus Juan Sebastian T. Santiago Rose Anne I. Viloria
Kyle Reneson Z. Kalaw Krystle Ann P. Mediante Julien Cohl A. Pusta Christopher Xavier B. Santillan Joanna R. Wolf
Jessica Angela N. Kawamura Mary Grace G. Mediavillo Sherwin L. Putong Darylle Shiene S. Santos Dia Lareina Pauline G. Wong
Nikhil Kumar Carnel P. Megino Caroline P. Quarte Lorelie D. Santos Nerissa A. Yap
Rhea Marie R. Lakip Loreta D. Mendoza Christia Maria Monica Y. Quintana Nikki Neil R. Santos Jason Clein L. Yu
Sarah Y. Lantin Ana Rica E. Mercado Ryan E. Ramirez Dave Marco D. Sesbreño Enrique Noel L. Yusingco
Franelle Ira M. Lareza Anne Catherine O. Mistula Jose Launcelot Langley G. Ramos Hazeline A. Sigua Jaime Genaro L. Zulueta

Noel Christopher C. Lavarias Amor A. Mondejar Mayden Joy S. Ramos Reziel B. Simo Ivy T. ZuÑiga
Val Ian Caleb A. Leus Amor G. Morales Jennifer Q. Rayala Melissa Hazel C. Sua
Jan Michael G. Leuterio Noelyn Joyce R. Morales Rosanna Jane M. Refuerzo Che Marie B. Tabin
Jowena G. Liao Donna Camille T. Nacario Honeylee G. Regala Carol Ann T. Tagle
Norissa C. Libed Ronald A. Naguit Mariel G. Regis Rio Mae Evelyn A. Talisic
Juan Manuel S. Liwag Gretchen T. Navor Alyssa M. Ricabo Mefel Adele E. Tamayo
Donald M. Liwanag Samuel Anthony D. Oberes Joanna Marie G. Robles Ma. Amparo L. Tang
CORPORATE INFORMATION
19.47% Others
Ownership Structure
As of 31 March 2023,
UnionBank’s major shareholders
are Aboitiz Equity Ventures, Inc.
(AEV), Social Security System
(SSS) and Insular Life Assurance
Company, Ltd. (Insular Life). 49.94% 12.28%
Filipino, Voting
Filipino, Voting
Note: Shareholdings are
according to the Public
144 Ownership Report
18.31%
Filipino, Voting
Head Office Customer Service

UnionBank Plaza, Meralco Avenue Hotline: (02) 8841-8600

corner Onyx and Sapphire Roads Platinum Cards Hotline: (02) 8631-7528
Ortigas Center, Pasig City 1605
Fax: (02) 8636-5259 Toll Free Numbers
SWIFT CODE: UBPHPHMM Domestic Calls (PLDT Landline): 1-800-1888-2277
Web Site/Internet Bank: www.unionbankph.com Universal Toll Free: (IAC)-800-8277-2273
(Applicable in USA, Netherlands, Spain,
Investor Relations Switzerland, Malaysia, Australia, Singapore,
Carlo I. Eñanosa Japan, Korea-Koreatel, Koreal-Onse, Israel)
Senior Vice President
Head, Corporate Planning Group Email
18/F UnionBank Plaza, Meralco Avenue gold@unionbankph.com
corner Onyx and Sapphire Roads customer.service@unionbankph.com
Ortigas Center, Pasig City 1605 corpcard@unionbankph.com
platinum@unionbankph.com
Stock Transfer Unit
Reymundo A. Mendoza
Quality Assurance and Allied Services Team Head
Trust Operations Division
23/F UnionBank Plaza, Meralco Avenue
corner Onyx and Sapphire Roads,
Ortigas Center, Pasig City 1605
CREDITS
The 2022 Annual Report is published by

UnionBank Corporate Media and Reputation Management (CMRM)
Customer Experience Group | CXG
for stockholders, clients and friends.
Design: OP Communications, Inc.
Writer: Heinz Bulos
Photography: Wig Tysmans

145
Photos of Directors Erramon Aboitiz, Sabin Aboitiz & Justo A. Ortiz,
Progressive Bank executive Dollie Buenconsejo – courtesy of
Aboitiz Equity Ventures, Inc. and subsidiary head, respectively
On the Cover: UnionBanker Claire L. Bernardo,

Customer Experience QA Officer, Consumer Affairs Group

STATEMENT OF MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL STATEMENTS
The management of Union Bank of the Philippines (the Bank) is responsible for the preparation and fair presentation of the financial statements, including the schedules attached
therein, for the years ended December 31, 2022, 2021 and 2020, in accordance with the prescribed financial reporting framework indicated therein, and for such internal control as
management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Bank's ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is responsible for overseeing the Bank's financial reporting process.
The Board of Directors reviews and approves the financial statements, including the schedules attached therein, and submits the same to the stockholders.
146 SyCip Gorres Velayo & Co., the independent auditors appointed by the stockholders, has audited the financial statements of the Bank in accordance with Philippine Standards on
Auditing and, in its report to the stockholders, has expressed its opinion on the fairness of presentation upon completion of such audit.
Erramon I. Aboitiz Edwin R. Bautista

Chairman of the Board President and Chief Executive Officer
Manuel R. Lozano Francis B. Albalate

Executive Vice President Senior Vice President
Chief Financial Officer Financial Controller
INDEPENDENT AUDITOR’S REPORT
The Board of Directors and Stockholders

Union Bank of the Philippines
Report on the Consolidated and Parent Bank Financial Statements
Opinion
We have audited the consolidated financial statements of Union Bank of the Philippines and its subsidiaries (the Group) and the parent bank financial statements of Union Bank of
the Philippines (the Parent Bank), which comprise the consolidated and parent bank statements of financial position as at December 31, 2022 and 2021, and the consolidated and
parent bank statements of income, consolidated and parent bank statements of comprehensive income, consolidated and parent bank statements of changes in capital funds and
147
consolidated and parent bank statements of cash flows for each of the three years in the period ended December 31, 2022, and notes to the consolidated and parent bank financial
statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated and parent bank financial statements present fairly, in all material respects, the financial position of the Group and the Parent Bank as
at December 31, 2022 and 2021, and their financial performance and their cash flows for each of the three years in the period ended December 31, 2022 in accordance with Philippine
Financial Reporting Standards (PFRSs).
Basis for Opinion
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 Consolidated and Parent Bank Financial Statements section of our report. We are independent of the Group and the Parent Bank in accordance
with the Code of Ethics for Professional Accountants in the Philippines (Code of Ethics) together with the ethical requirements that are relevant to our audit of the consolidated and
parent bank financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated and parent bank financial statements of the current
period. These matters were addressed in the context of our audit of the consolidated and parent bank financial statements as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the Consolidated and Parent Bank Financial Statements section of our report, including
in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the
consolidated and parent bank financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our
audit opinion on the accompanying consolidated and parent bank financial statements.
Applicable to the Audit of the Consolidated and Parent Bank Financial Statements
Allowance for expected credit loss (ECL)

The Group’s and the Parent Bank’s application of the expected credit loss (ECL) model in calculating the allowance for credit losses on loans and receivables is significant to our audit
as it involves the exercise of significant management judgment. Key areas of judgment include: segmenting the Group’s and the Parent Bank’s credit risk exposures; determining the
method to estimate ECL; defining default; identifying exposures with significant deterioration in credit quality, taking into account extension of payment terms and payment holidays
provided as a result of the coronavirus pandemic; determining assumptions used in the ECL model such as the counterparty credit risk rating, the expected life of the financial asset,
expected recoveries from defaulted accounts, and impact of credit enhancements extended by any party; and incorporating forward-looking information, including the impact of the
coronavirus pandemic, in calculating ECL.
Refer to Notes 4 and 20 of the consolidated and parent bank financial statements for the disclosures on the details of the allowance for credit losses using the ECL model.
Audit Response
We obtained an understanding of the methodologies and models used for the Group’s and the Parent Bank’s different credit exposures and assessed whether these considered
the requirements of PFRS 9, Financial Instruments (PFRS 9), to reflect an unbiased and probability-weighted outcome, and to consider time value of money and the best available
forward-looking information. We also inspected and considered the results of the model validation on the risk rating performed by management’s specialist.
148
We (a) assessed the Group’s and the Parent Bank’s segmentation of its credit risk exposures based on homogeneity of credit risk characteristics; (b) tested the definition of default
and significant increase in credit risk criteria against historical analysis of accounts, credit risk management policies and practices in place, and management’s assessment of the
impact of the coronavirus pandemic on the counterparties; (c) tested the Group’s and the Parent Bank’s application of internal credit risk rating system, including the impact of the
coronavirus pandemic on the borrowers, by reviewing the ratings of sample credit exposures; (d) tested loss given default by inspecting historical recoveries and related costs, write-
offs and collateral valuations, and the effects of credit enhancements provided by any party; (e) tested exposure at default considering outstanding commitments and repayment
scheme; (f) checked the forward-looking information used for overlay through statistical test and corroboration using publicly available information and our understanding of the
Group’s and the Parent Bank’s lending portfolios and broader industry knowledge, including the impact of the coronavirus pandemic; and (g) tested the effective interest rate used in
discounting the expected credit loss.
Further, we checked the data used in the ECL models by reconciling data from source system reports to the data warehouse and from the data warehouse to the loss allowance
models and financial reporting systems. To the extent that the loss allowance analysis is based on credit exposures that have been disaggregated into subsets of debt financial assets
with similar risk characteristics, we traced or re-performed the disaggregation from source systems to the loss allowance analysis.
We recalculated impairment provisions on a sample basis. We reviewed the completeness of the disclosures made in the consolidated and parent bank financial statements.
We involved our internal specialists in the performance of the above procedures.
Accounting for business combination

As disclosed in Note 1, in August 2022, the Group and the Parent Bank acquired the consumer banking business in the Philippines of another bank. As permitted by PFRS 3, Business
Combinations, the Group and the Parent Bank determined the purchase price allocation on a provisional basis. We considered the accounting for this acquisition as a key audit matter
because the amounts involved are material and required significant management judgment and estimates. Specifically, management exercised significant judgments and estimates
in the determination of the fair value of loans and receivables using the discounted cash flow methodology and the fair value of properties using valuation techniques that consider
recent transaction prices for similar properties and economic conditions prevailing at the time the valuations were made.
The Group’s and the Parent Bank’s disclosures about the fair value determination of the identifiable assets and liabilities acquired and the details of the business acquisition are
included in Notes 1 and 3 to the consolidated and parent bank financial statements.
Audit Response
We obtained the Group’s and the Parent Bank’s provisional purchase price allocation and the related fair values of identifiable assets and liabilities of the acquired business. We
obtained an understanding of the methodology and assumptions used in the determination of the fair value, particularly for the loans and receivables and properties. For loans and
receivables, we checked the forecasted cash flows of selected loans against the contractual cash flows and the borrower’s current financial condition and ability to pay the loan.
We tested the parameters used in the determination of the discount rate against market data and the Group’s current incremental lending rate for similar type of loans and
receivables. For the properties, we evaluated the competence, capabilities and qualifications of the external appraisers by considering their qualifications, experience and reporting
responsibilities. We involved our internal specialist in obtaining an understanding and evaluating the methodology and assumptions used in the valuation of the properties. We
assessed the methodology adopted by referencing with common valuation models. We reviewed the relevant information supporting the sales and listings of comparable properties
and the adjustments made to the sales price. We tested the mathematical accuracy of the provisional purchase price allocation and reviewed the presentation and disclosures in the
consolidated and parent bank financial statements.
Impairment testing of goodwill

Under PFRS, the Group and the Parent Bank perform testing of goodwill for impairment annually or more frequently if events or changes in circumstances indicate that the carrying
values may be impaired. The Group’s and the Parent Bank’s goodwill attributable to the various cash generating units (CGUs) is considered significant to the consolidated and parent
bank financial statements. The Group’s and the Parent Bank’s impairment assessment requires significant judgement and is based on assumptions which are subject to higher level
of estimation uncertainty due to the current economic conditions which have been impacted by the coronavirus pandemic, specifically on loan growth rate, deposit growth rate and
149
discount rate. The disclosures in relation to the CGUs to which the goodwill is allocated and the Group’s and the Parent Bank’s impairment assessment are included in Notes 3 and 18
to the consolidated and parent bank financial statements.
Audit Response
We involved our internal specialist in evaluating the methodologies and the assumptions used in calculating the value-in-use (VIU) of the CGUs. We compared the key assumptions
used such as loan growth rate and deposit growth rate against the historical financial performance and the specific plans for the CGUs and other relevant external data, taking into
consideration the impact associated with coronavirus pandemic. We tested the parameters used in the determination of the discount rate against market data. We also reviewed the
Group’s and the Parent Bank’s disclosures about those assumptions to which the outcome of the impairment test is most sensitive; specifically those that have the most significant
effect on the determination of the recoverable amount of goodwill.

Other Information
Management is responsible for the other information. The other information comprises the information included in the SEC Form 20IS (Definitive Information Statement), SEC Form
17A and Annual Report for the year ended December 31, 2022, but does not include the consolidated and parent bank financial statements and our auditor’s report thereon. The SEC
Form 20IS (Definitive Information Statement), SEC Form 17A and Annual Report for the year ended December 31, 2022 are expected to be made available to us after the date of this
auditor’s report.
Our opinion on the consolidated and parent bank financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated and parent bank financial statements, our responsibility is to read the other information identified above when it becomes available
and, in doing so, consider whether the other information is materially inconsistent with the consolidated and parent bank financial statements or our knowledge obtained in the audits,
or otherwise appears to be materially misstated.
Responsibilities of Management and Those Charged with Governance for the Consolidated and Parent Bank Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated and parent bank financial statements in accordance with PFRSs, and for such internal control
as management determines is necessary to enable the preparation of consolidated and parent bank financial statements that are free from material misstatement, whether due to
fraud or error. In preparing the consolidated and parent bank financial statements, management is responsible for assessing the Group’s and Parent Bank’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group
and the Parent Bank or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Group’s and Parent Bank’s
financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated and Parent Bank Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated and parent bank financial statements as a whole are free from material misstatement, whether
due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with PSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated and parent bank financial statements.
As part of an audit in accordance with PSAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated and parent bank financial statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
150 misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Group’s and Parent Bank’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Group’s and Parent Bank’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated and parent bank financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Group and the Parent Bank to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated and parent bank financial statements, including the disclosures, and whether the consolidated and
parent bank financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated
financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated and parent
bank financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on the Supplementary Information Required Under Bangko Sentral ng Pilipinas (BSP) Circular No. 1074 and Revenue Regulations 15-2010
Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information required under BSP Circular No.
1074 in Note 38 to the financial statements and Revenue Regulations 15-2010 in Note 37 to the financial statements is presented for purposes of filing with the BSP and the Bureau of
Internal Revenue, respectively, and is not a required part of the basic financial statements. Such information is the responsibility of the management of Union Bank of the Philippines.
The information has been subjected to the auditing procedures applied in our audit of the basic financial statements. In our opinion, the information is fairly stated, in all material
respects, in relation to the basic financial statements taken as a whole.
The engagement partner on the audit resulting in this independent auditor’s report is Janet A. Paraiso.
151
SYCIP GORRES VELAYO & CO.
Janet A. Paraiso
Partner
CPA Certificate No. 92305
Tax Identification No. 193-975-241
BOA/PRC Reg. No. 0001, August 25, 2021, valid until April 15, 2024
SEC Partner Accreditation No. 92305-SEC (Group A) Valid to cover audit of 2021 to 2025 financial statements of SEC covered institutions

SEC Firm Accreditation No. 0001-SEC (Group A) Valid to cover audit of 2021 to 2025 financial statements of SEC covered institutions
BIR Accreditation No. 08-001998-062-2020, December 3, 2020, valid until December 2, 2023
PTR No. 9369768, January 3, 2023, Makati City
February 27, 2023

STATEMENTS OF FINANCIAL POSITION
DECEMBER 31, 2022 AND 2021
(Amounts are presented in thousands of Philippine Pesos)
Group Parent Bank

December 31 December 31
2022 2021 2022 2021
RESOURCES
Cash and Other Cash Items (Note 8) P9,891,536 P8,904,903 P8,924,249 P7,988,517
Due from Bangko Sentral ng Pilipinas (Note 8) 94,610,308 103,407,946 66,588,121 67,478,389
Due from Other Banks (Note 9) 46,239,964 54,258,465 42,263,529 51,308,983
152
Interbank Loans Receivable (Note 10) − 17,492,657 − 17,492,657
Securities Purchased under Reverse Repurchase Agreements (SPURRA) (Note 10) 23,553,973 23,420,742 14,634,811 15,541,296
Trading and Investment Securities
At fair value through profit or loss (FVTPL) (Note 11) 8,653,516 5,640,005 8,583,178 5,571,270
At amortized cost (Note 12) 244,627,904 166,362,179 235,400,671 162,139,448
At fair value through other comprehensive income (FVOCI) (Note 13) 79,761,762 65,672,610 79,467,678 65,370,691
Loans and Other Receivables - net (Note 14) 479,657,898 336,353,889 393,765,594 275,576,906
Investment in Subsidiaries and Associates (Note 15) 123,396 142,355 31,758,460 23,082,955
Bank Premises, Furniture, Fixtures and Equipment - net (Note 16) 8,706,619 6,765,771 7,236,034 5,336,326
Investment Properties – net (Note 17) 8,258,873 8,673,344 7,124,049 7,435,877
Goodwill (Note 18) 62,310,287 14,818,932 51,659,262 7,886,898
Other Resources - net (Note 19) 26,341,829 19,181,663 19,635,435 15,308,078
TOTAL RESOURCES P1,092,737,865 P831,095,461 P967,041,071 P727,518,291

STATEMENTS OF FINANCIAL POSITION
DECEMBER 31, 2022 AND 2021
Group Parent Bank
2022 2021 2022 2021
LIABILITIES AND CAPITAL FUNDS

LIABILITIES
Deposit Liabilities (Note 21)
Demand P232,081,793 P204,560,986 P233,365,153 P206,254,190
Savings 195,020,730 136,430,021 188,480,585 132,074,831
153
Time 281,201,419 226,509,885 199,075,294 151,730,160
Long-term negotiable certificate of deposits 3,000,000 3,000,000 3,000,000 3,000,000
711,303,942 570,500,892 623,921,032 493,059,181

Bills Payable (Note 22) 132,846,789 51,168,138 99,309,124 28,577,774
Notes and Bonds Payable (Note 23) 51,644,325 69,853,986 51,644,325 69,789,836
Other Liabilities (Note 24) 48,800,486 27,359,217 44,646,216 24,432,809
944,595,542 718,882,233 819,520,697 615,859,600

CAPITAL FUNDS
Capital funds attributable to the Parent Bank’s stockholders (Note 25)
Common stock 21,421,068 12,193,628 21,421,068 12,193,628
Additional paid-in capital 47,949,927 14,214,551 47,949,927 14,214,551
Stock dividend distributable − 3,048,388 − 3,048,388
Surplus free 90,727,927 82,122,752 91,307,820 82,754,489
Surplus reserves 2,452,975 2,798,673 2,030,080 2,323,934
Net unrealized fair value losses on investment securities at FVOCI (Note 13) (14,057,609) (1,448,457) (14,059,469) (1,447,065)
Remeasurements of defined benefit plans (Note 29) (1,227,666) (1,507,361) (1,166,234) (1,449,181)
Other reserves 30,989 13,754 37,182 19,947
Total capital funds attributable to the Parent Bank’s stockholders 147,297,611 111,435,928 147,520,374 111,658,691
Non-controlling interests 844,712 777,300 − −
148,142,323 112,213,228 147,520,374 111,658,691
TOTAL LIABILITIES AND CAPITAL FUNDS P1,092,737,865 P831,095,461 P967,041,071 P727,518,291
See accompanying Notes to Financial Statements.

STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020
(Amounts are presented in thousands of Philippine Pesos, Except Earnings per Share)
Group Parent Bank

Years Ended December 31 Years Ended December 31
2022 2021 2020 2022 2021 2020
INTEREST INCOME ON
Loans and other receivables (Note 14) P36,004,714 P27,372,449 P28,406,664 P23,907,388 P17,497,261 P19,802,696
Investment securities at amortized cost and FVOCI (Notes 12 and 13) 12,489,741 7,706,773 8,084,663 12,083,622 7,610,675 7,937,196
154 Cash and cash equivalents (Notes 8 and 9) 1,000,188 679,740 1,021,974 584,977 332,870 756,035
SPURRA (Note 10) 566,019 300,764 444,275 393,663 204,381 273,324
Interbank loans receivable (Note 10) 260,343 23,256 95,857 259,183 22,170 95,451
Trading securities at FVTPL (Note 11) 203,766 244,587 524,261 203,766 244,587 524,261
50,524,771 36,327,569 38,577,694 37,432,599 25,911,944 29,388,963
INTEREST EXPENSE ON
Deposit liabilities (Note 21) 6,021,671 2,967,692 5,616,821 4,196,509 1,805,424 4,256,480
Bills payable and other liabilities (Notes 22, 23, 24 and 29) 5,601,709 3,544,787 4,230,619 4,183,835 2,446,570 3,262,923
11,623,380 6,512,479 9,847,440 8,380,344 4,251,994 7,519,403
NET INTEREST INCOME 38,901,391 29,815,090 28,730,254 29,052,255 21,659,950 21,869,560

PROVISION FOR CREDIT LOSSES (Note 20) 4,068,449 5,811,398 8,381,856 2,571,143 4,657,731 7,450,171
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 34,832,942 24,003,692 20,348,398 26,481,112 17,002,219 14,419,389
OTHER INCOME
Service charges, fees and commissions (Note 27) 6,781,671 3,773,311 2,346,639 5,685,762 2,492,356 1,723,620
Gains (losses) on trading and investmentsecurities at FVTPL and FVOCI (Notes 11 and 13) (181,397) 217,943 3,829,710 (182,303) 217,533 3,831,674
Gains on sale of investment securities at amortized cost (Note 12) 100,223 8,447,595 5,111,793 100,223 8,447,595 5,111,793
Miscellaneous (Note 28) 6,598,584 2,861,815 2,078,996 7,497,855 3,542,828 2,565,048
13,299,081 15,300,664 13,367,138 13,101,537 14,700,312 13,232,135
TOTAL OPERATING INCOME 48,132,023 39,304,356 33,715,536 39,582,649 31,702,531 27,651,524

STATEMENTS OF INCOME
(Amounts are presented in thousands of Philippine Pesos, Except Earnings per Share)
Group Parent Bank

2022 2021 2020 2022 2021 2020
OTHER EXPENSES
Salaries and employee benefits (Note 29) P10,030,713 P8,646,702 P7,809,204 P7,552,736 P6,591,420 P5,910,981
Taxes and licenses (Note 17) 4,110,188 2,881,458 3,503,233 2,738,837 1,929,202 2,597,693
Depreciation and amortization (Note 16) 1,607,873 1,623,679 1,406,900 1,167,564 1,146,458 1,008,907
Occupancy (Note 16) 1,026,889 890,645 904,750 764,356 674,342 674,692 155
Miscellaneous (Note 28) 14,751,697 10,277,070 7,749,066 11,901,915 7,147,271 6,126,463
31,527,360 24,319,554 21,373,153 24,125,408 17,488,693 16,318,736
PROFIT BEFORE TAX 16,604,663 14,984,802 12,342,383 15,457,241 14,213,838 11,332,788

INCOME TAX EXPENSE (Note 30) 3,931,441 2,407,069 781,380 2,927,993 1,688,462 69,365
NET PROFIT P12,673,222 P12,577,733 P11,561,003 P12,529,248 P12,525,376 P11,263,423
Attributable to:

Parent Bank’s stockholders P12,529,248 P12,525,376 P11,553,430 P12,529,248 P12,525,376 P11,263,423
Non-controlling interests 143,974 52,357 7,573 − − −
P12,673,222 P12,577,733 P11,561,003 P12,529,248 P12,525,376 P11,263,423
Basic/Diluted Earnings per Share (Note 33) P6.55 P8.22 P7.58 P6.55 P8.22 P7.39

STATEMENTS OF COMPREHENSIVE INCOME
Group Parent Bank

2022 2021 2020 2022 2021 2020
NET PROFIT FOR THE YEAR P12,673,222 P12,577,733 P11,561,003 P12,529,248 P12,525,376 P11,263,423
OTHER COMPREHENSIVE INCOME (LOSS)

Items that may be reclassified to profit or loss in subsequent periods:
156
Unrealized mark-to-market gains (losses) on investment securities at FVOCI (12,510,381) (845,911) 2,997,404 (12,556,049) (835,790) 2,989,316
Realized (gains) losses on sale of investment securities at FVOCI recognized in profit or loss (Note 13) (99,466) (657,987) (3,020,457) (100,162) (657,987) (3,020,457)
Cumulative translation adjustment 17,235 32,640 (15,337) 17,235 30,559 (10,612)
Share in unrealized mark-to-market gains (losses) on investment securities at FVOCI of subsidiaries (Note 15) − − − 43,807 (133) −
Items that will not be reclassified to profit or loss in subsequent periods:
Remeasurement gains (losses) on defined benefit plan (Note 29) 372,764 502,675 (634,623) 336,721 427,890 (588,767)
Income tax benefit (expense) (Note 30) (93,191) (193,286) 190,387 (84,180) (174,589) 176,630
Share in changes in remeasurement gains (losses) of subsidiaries (Note 15) − − − 30,406 38,907 (21,228)
TOTAL OTHER COMPREHENSIVE LOSS FOR THE YEAR (12,313,039) (1,161,869) (482,626) (12,312,222) (1,171,143) (475,118)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR P360,183 P11,415,864 P11,078,377 P217,026 P11,354,233 P10,788,305
Attributable to:
Parent Bank’s stockholders P217,026 P11,362,598 P11,078,413 P217,026 P11,354,233 P10,788,305
Non-controlling interests 143,157 53,266 (36) − − −
P360,183 P11,415,864 P11,078,377 P217,026 P11,354,233 P10,788,305

STATEMENTS OF CHANGES IN CAPITAL FUNDS
Group
Equity Attributable to Equity Holders of the Parent Bank

Net Unrealized
Fair Value
Gains (Losses)
Additional Stock on Investment Remeasurements Non- Total
Capital Paid-in Dividend Surplus Surplus Securities of Defined Other controlling Capital
Stock Capital Distributable Free Reserves at FVOCI Benefit Plan Reserves Total Interests Funds
Balances as at January 1, 2022 P12,193,628 P14,214,551 P3,048,388 P82,122,752 P2,798,673 (P1,448,457) (P1,507,361) P13,754 P111,435,928 P777,300 P112,213,228 157
Total comprehensive income (loss) for the year − − − 12,529,248 − (12,609,152) 279,695 17,235 217,026 143,157 360,183
Issuance of new shares (Note 25) 9,227,440 33,735,376 (3,048,388) − − − − − 39,914,428 − 39,914,428
Cash dividends (Note 25) − − − (4,269,771) − − − − (4,269,771) − (4,269,771)
Reversal of appropriations during the year – net (Note 25) − − − 345,698 (345,698) − − − − − −
Dividends of subsidiaries to non-controlling interests (NCI) − − − − − − − − − (75,745) (75,745)
Balances as at December 31, 2022 P21,421,068 P47,949,927 P− P90,727,927 P2,452,975 (P14,057,609) (P1,227,666) P30,989 P147,297,611 P844,712 P148,142,323
Balances as at January 1, 2021 P12,184,715 P14,214,983 P− P77,096,218 P2,645,080 P55,384 (P1,815,784) (P18,886) P104,361,710 P790,692 P105,152,402

Total comprehensive income (loss) for the year − − − 12,525,376 − (1,503,841) 308,423 32,640 11,362,598 53,266 11,415,864
Issuance of new shares (Note 25) 8,913 54,684 − − − − − − 63,597 − 63,597
Stock dividends (Note 25) − (55,116) 3,048,388 (3,048,388) − − − − (55,116) − (55,116)
Appropriations during the year (Note 25) − − − (153,593) 153,593 − − − − − −
Dividends of subsidiaries to NCI − − − − − − − − − (59,300) (59,300)
Subscription of shares by NCI − − − − − − − − − 10,000 10,000
Acquisition of NCI − − − (29,091) − − − − (29,091) (17,358) (46,449)
Balances as at December 31, 2021 P12,193,628 P14,214,551 P3,048,388 P82,122,752 P2,798,673 (P1,448,457) (P1,507,361) P13,754 P111,435,928 P777,300 P112,213,228
Balances as at January 1, 2020 P12,176,096 P14,172,060 P− P67,851,771 P4,600,747 P78,437 (P1,379,157) (P3,549) P97,496,405 P520,560 P98,016,965
Total comprehensive income (loss) for the year − − − 11,553,430 − (23,053) (436,627) (15,337) 11,078,413 (36) 11,078,377
Issuance of new shares (Note 25) 8,619 42,923 − − − − − − 51,542 − 51,542
Effect of business combination (Note 15) − − − − − − − − − 270,168 270,168
Reversal of appropriations during the year – net (Note 25) − − − 1,955,667 (1,955,667) − − − − − −
Balances as at December 31, 2020 P12,184,715 P14,214,983 P− P77,096,218 P2,645,080 P55,384 (P1,815,784) (P18,886) P104,361,710 P790,692 P105,152,402
Parent Bank
Net Unrealized
Fair Value
Gains (Losses) on
Additional Stock Investment Remeasurements Total
Capital Paid-in Dividend Securities at of Defined Other Capital
Stock Capital Distributable Surplus Free Surplus Reserves FVOCI Benefit Plan Reserves Funds
Balances as at January 1, 2022 P12,193,628 P14,214,551 P3,048,388 P82,754,489 P2,323,934 (P1,447,065) (P1,449,181) P19,947 P111,658,691
Total comprehensive income (loss) for the year − − − 12,529,248 − (12,612,404) 282,947 17,235 217,026
Issuance of new shares (Note 25) 9,227,440 33,735,376 (3,048,388) − − − − − 39,914,428
158 Cash dividends (Note 25) − − − (4,269,771) − − − − (4,269,771)
Appropriations during the year – net (Note 25) − − − 293,854 (293,854) − − − −
Balances as at December 31, 2022 P21,421,068 P47,949,927 P− P91,307,820 P2,030,080 (P14,059,469) (P1,166,234) P37,182 P147,520,374
Balances as at January 1, 2021 P12,184,715 P14,214,983 P− P77,697,363 P2,171,842 P46,845 (P1,741,389) (P10,612) P104,563,747
Total comprehensive income (loss) for the year − − − 12,525,376 − (1,493,910) 292,208 30,559 11,354,233
Issuance of new shares (Note 25) 8,913 54,684 − − − − − − 63,597
Stock dividends (Note 25) − (55,116) 3,048,388 (3,048,388) − − − − (55,116)
Cash dividends (Note 25) − − − (4,267,770) − − − − (4,267,770)

Appropriations during the year – net (Note 25) − − − (152,092) 152,092 − − − −
Balances as at December 31, 2021 P12,193,628 P14,214,551 P3,048,388 P82,754,489 P2,323,934 (P1,447,065) (P1,449,181) P19,947 P111,658,691
Balances as at January 1, 2020 P12,176,096 P14,172,060 P− P70,201,147 P2,669,285 P77,986 (P1,308,024) P− P97,988,550
Total comprehensive income (loss) for the year − − − 11,263,423 − (31,141) (433,365) (10,612) 10,788,305
Issuance of new shares (Note 25) 8,619 42,923 − − − − − − 51,542
Cash dividends (Note 25) − − − (4,264,650) − − − − (4,264,650)
Reversals of appropriations during the year – net (Note 25) − − − 497,443 (497,443) − − − −
Balances as at December 31, 2020 P12,184,715 P14,214,983 P− P77,697,363 P2,171,842 P46,845 (P1,741,389) (P10,612) P104,563,747

CONSOLIDATED STATEMENTS OF CASH FLOWS
GROUP PARENT BANK

2022 2021 2020 2022 2021 2020
CASH FLOWS FROM OPERATING ACTIVITIES

Profit before tax P16,604,663 P14,984,802 P12,342,383 P15,457,241 P14,213,838 P11,332,788
Adjustments for:
Provision for credit losses (Note 20) 4,068,449 5,811,398 8,381,856 2,571,143 4,657,731 7,450,171
159
Depreciation and amortization (Note 16) 2,228,372 2,221,316 1,928,421 1,632,098 1,557,053 1,447,218
Unrealized foreign exchange losses (gains) - net 1,265,139 (876,088) 45,873 1,187,664 (909,334) 45,882
Losses (gains) on sale of investment properties (Note 17) (1,224,045) 43,689 (229,148) (1,193,004) (207,360) (195,471)
Amortization of premium and discount of financial assets and liabilities 1,168,740 2,269,357 633,893 1,272,967 2,220,141 635,120
Gains on foreclosure of investment properties (Note 17) (466,388) (135,309) (153,876) (466,388) (135,309) (153,876)
Gains on sale of investment securities at amortized cost (Note 12) (100,223) (8,447,595) (5,111,793) (100,223) (8,447,595) (5,111,793)
Gains on sale of investment securities at FVOCI (Note 13) (99,466) (657,987) (3,020,457) (100,162) (657,987) (3,020,457)
Share in net loss (profit) of subsidiaries and associates (Notes 15 and 28) 29,666 4,135 3,665 (1,712,086) (1,173,016) (953,082)

Reversal of impairment on investment properties (Note 17) (24,695) (64,649) − (24,722) (64,649) −
Losses (gains) on disposal of property and equipment (Note 16) 14,849 (18,108) 8,641 429 (1,900) (6,236)
Impairment of goodwill and investment in subsidiaries (Notes 15 and 18) − 529,599 223,172 − − 290,002
Gain on sale of investments in associates (Note 15) − (167,332) − − − −
Changes in operating assets and liabilities:
Decreases (increases) in:
Loans and other receivables (80,626,502) (19,355,679) 29,147,657 (54,060,475) (17,497,222) 33,878,915
Trading securities at FVTPL (3,013,511) 12,670,664 (10,582,248) (3,011,908) 12,840,034 (10,593,749)
Other resources (9,594,421) (6,328,757) (28,285) (5,535,753) (4,114,905) (1,175,000)
Increases (decreases) in:
Deposit liabilities 75,537,858 42,715,866 46,590,101 65,596,659 27,830,562 32,349,777
Other liabilities 21,445,696 2,905,804 (6,953,527) 18,489,460 1,533,845 (4,817,926)
Net cash provided by operations 27,214,181 48,105,126 73,226,328 40,002,940 31,643,927 61,402,283
Income taxes paid (3,519,486) (2,171,465) (2,155,071) (1,920,223) (1,260,561) (1,296,905)
Net cash provided by operating activities 23,694,695 45,933,661 71,071,257 38,082,717 30,383,366 60,105,378
GROUP PARENT BANK
2022 2021 2020 2022 2021 2020
CASH FLOWS FROM INVESTING ACTIVITIES

Acquisitions of:
Investment securities at amortized cost (P118,551,429) (P125,796,399) (P65,958,555) (P113,271,357) (P124,111,014) (P63,475,137)
Investment securities at FVOCI (111,135,751) (78,214,061) (97,655,465) (111,112,623) (78,214,061) (97,655,465)
160
Bank premises, furniture, fixtures and equipment (Note 16) (551,592) (505,605) (1,026,363) (308,016) (317,391) (867,690)
Investments in subsidiaries and associates (Notes 1 and 15) (14,400) (109,608) − (7,073,025) (1,500,000) −
Proceeds from maturities/sale of:
Investment securities at amortized cost 42,109,410 122,933,196 71,519,901 41,846,113 122,903,200 71,519,901
Investment securities at FVOCI 87,266,386 46,097,932 72,201,864 87,191,082 46,067,931 72,201,864
Investment properties (Note 17) 620,286 464,361 410,787 575,169 407,214 273,676
Bank premises, furniture, fixtures and equipment (Note 16) 45,761 52,920 12,418 18,285 15,543 18,138
Dividends received from a subsidiary − − − 188,000 1,496,811 −
Investments in associates (Note 15) − 313,012 − − − −

Acquisition of business, net of cash acquired (Notes 1 and 15) (48,125,088) − 54,241 (44,369,378) − (702,502)
Dissolution of subsidiaries (Notes 1 and 15) − − − − 11 −
Net cash used in investing activities (148,336,417) (34,764,252) (20,441,172) (146,315,750) (33,251,756) (18,687,215)
CASH FLOWS FROM FINANCING ACTIVITIES

Payments of:
Bills payable (225,725,630) (131,247,110) (609,512,421) (177,520,637) (69,805,980) (565,341,774)
Notes and bonds payable (38,183,199) (3,473,520) (21,171,857) (35,112,500) − (18,200,000)
Cash dividends (Note 25) (4,269,771) (4,267,770) (4,264,650) (4,269,771) (4,267,770) (4,264,650)
Lease liabilities (Note 24) (659,030) (579,064) (613,498) (496,312) (446,112) (477,197)
Dividends of subsidiaries to NCI (75,745) (59,300) − − − −
Cash for fractional shares related to stock dividends (Note 25) − (55,116) − − (55,116) −
Proceeds from:
Bills payable 306,504,535 127,075,530 558,732,399 247,352,242 62,765,158 507,779,097
Issuance of new shares, net of issuance costs (Note 25) 39,914,428 63,597 51,542 39,914,428 63,597 51,542
Notes and bonds payable (Note 23) 13,904,476 11,057,895 33,135,900 10,932,289 7,650,000 30,206,900
Subscription of shares by NCI − 10,000 − − − −
Net cash provided by (used in) financing activities 91,410,064 (1,474,858) (43,642,585) 80,799,739 (4,096,223) (50,246,082)
CONSOLIDATED STATEMENTS OF CASH FLOWS
GROUP PARENT BANK

2022 2021 2020 2022 2021 2020
EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES P42,726 (P44,958) (P145,377) P34,162 (P44,958) (P140,652)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (33,188,932) 9,649,593 6,842,123 (27,399,132) (7,009,571) (8,968,571)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR

161
Cash and other cash items 8,904,903 8,958,042 8,580,709 7,988,517 7,814,917 7,832,302
Due from Bangko Sentral ng Pilipinas (BSP) 103,407,946 103,869,770 73,749,813 67,478,389 83,867,434 67,798,418
Due from other banks 54,258,465 68,532,218 73,675,709 51,308,983 64,763,768 71,497,226
Interbank loans receivable 17,492,657 − 213,062 17,492,657 − 213,062
Securities purchased under reverse repurchase agreement (SPURRA) 23,420,742 16,475,090 34,773,704 15,541,296 10,373,294 28,446,976
207,484,713 197,835,120 190,992,997 159,809,842 166,819,413 175,787,984
CASH AND CASH EQUIVALENTS AT END OF YEAR

Cash and other cash items 9,891,536 8,904,903 8,958,042 8,924,249 7,988,517 7,814,917
Due from BSP 94,610,308 103,407,946 103,869,770 66,588,121 67,478,389 83,867,434
Due from other banks 46,239,964 54,258,465 68,532,218 42,263,529 51,308,983 64,763,768
Interbank loans receivable − 17,492,657 − − 17,492,657 −
SPURRA 23,553,973 23,420,742 16,475,090 14,634,811 15,541,296 10,373,294
P174,295,781 P207,484,713 P197,835,120 P132,410,710 P159,809,842 P166,819,413
OPERATIONAL CASH FLOWS FROM INTERESTS AND DIVIDENDS

Interest received P47,786,261 P38,840,197 P38,292,850 P36,762,893 P28,048,227 P29,188,963
Interest paid 10,608,914 6,482,612 10,304,166 7,588,579 4,250,186 7,976,641
Dividends received 6,076 145,789 200,671 2,768 145,789 200,671

UNION BANK OF THE PHILIPPINES AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS
1. Corporate Information
Incorporation and Operations

Union Bank of the Philippines (the Bank, UnionBank or the Parent Bank) was incorporated in the
Philippines on August 16, 1968 and operates as a universal bank through its universal banking
license acquired in July 1992.
The Bank provides expanded commercial banking products and services such as loans and
deposits, cash management, retail banking, foreign exchange, capital markets, corporate and
consumer finance, investment management and trust banking. As of December 31, 2022, the
Bank and its subsidiaries (collectively referred to as the “Group”) has 385 branches and
454 on-site and 131 off-site automated teller machines (ATMs), located nationwide.
The Bank’s common shares are listed in the Philippine Stock Exchange (PSE). The Bank is
effectively 49.92% owned by Aboitiz Equity Ventures, Inc. (AEVI), a company incorporated and
domiciled in the Philippines. AEVI is the holding and management company of the Aboitiz
Group of Companies.
The Bank’s subsidiaries are all incorporated in the Philippines, except for UBX SG and UBX
Remit, and the Bank’s effective percentage of ownership and the nature of the subsidiaries’
businesses as of December 31, 2022 and 2021 are as follows:
Percentage of ownership
Name of Subsidiary 2022 2021 Nature of Business
City Savings Bank, Inc. (CSB) 99.79% 99.79% Thrift bank
PetNet, Inc. (PETNET) (a) 51.00% 51.00% Foreign currency trader and
remittance business
First-Agro Industrial Rural Bank, Inc. (FAIR Bank) (f) 100.00% 100.00% Rural bank
UBP Investments Corporation (UIC) 100.00% 100.00% Holding company
First Union Plans, Inc. (FUPI) (k) 100.00% 100.00% Pre-need
First Union Direct Corporation (FUDC) (h) 100.00% 100.00% Financial products marketing
First Union Insurance and Financial Agencies, Inc. 100.00% 100.00% Agent for insurance and
(FUIFAI) (b) financial products
UBP Securities, Inc. (UBPSI) (h) 100.00% 100.00% Securities brokerage
UnionBank Currency Brokers Corporation (UCBC) (i) − 100.00% Foreign currency brokerage
UnionDataCorp (UDC) (h) 100.00% 100.00% Data processing
Interventure Capital Corporation (IVCC) (h) 60.00% 60.00% Venture capital
UBX Philippines Corporation (UBX) 100.00% 100.00% Investment holding and
innovation company
UBX Private Ltd. (UBX SG) (c) 100.00% 100.00% Holding company
UBX Remit Pte. Ltd. (UBX Remit) (d) 100.00% 100.00% Remittance company
Bangko Kabayan, Inc. (A Private Development Bank)
(Bangko Kabayan) (e) 70.00% 70.00% Private development bank
Progressive Bank, Inc. (PBI) (f) 100.00% 100.00% Rural bank
UnionDigital Bank, Inc. (UnionDigital) (g) 100.00% 100.00% Digital bank
Citicorp Financial Services and Insurance Brokerage Insurance and securities
Philippines, Inc. (CFSI) (j) 100.00% − brokerage
(a) Subsidiary through CSB and UIC, with 40% and 11% share in ownership, respectively
(b) Wholly-owned subsidiaries of UIC
(c) Wholly owned subsidiary of UBX
(d) Wholly owned subsidiary of UBX SG
(e) Subsidiary through CSB and UIC, with 49% and 21% share in ownership, respectively
(f) Subsidiary through CSB and UIC, with 49% and 51% share in ownership, respectively
(g) Incorporated on November 25, 2021
(h) Non-operating subsidiaries, wholly-owned by UIC
(i) Dissolved as of April 8, 2022
(j) Acquired 100% ownership as part of the Parent Bank’s acquisition of Citigroup Inc.’s consumer business in the Philippines on August 1, 2022
(k) In October 2022, the stockholders of FUPI approved the voluntary cessation and withdrawal of its pre-need business
*SGVFS169521*
Corporate Information -2-
Other relevant information about the subsidiaries’ nature of businesses and their status of
operations are discussed in the sections that follow:
(a) In a special meeting held on December 23, 2021, the Bank’s BOD approved the acquisition
of Citigroup Inc.’s consumer banking business in the Philippines. The transaction includes
the acquisition of Citigroup’s credit card, personal loans, wealth management, and retail
deposit businesses, as well as the real estate interests in Citibank Square in Eastwood,
Quezon City, 3 full-service bank branches, and 5 wealth centers in the Philippines.
Also on December 23, 2021, the BOD approved the raising of additional capital of up to
=40.0 billion through the issuance of additional shares from the Bank’s unissued authorized
P
capital stock via a stock rights offering (SRO) to all existing shareholders. On May 16, 2022,
the Bank issued approximately 617.2 million common shares priced at = P64.81 per share.
Proceeds from the SRO were deployed to partially fund the acquisition of Citigroup, Inc.’s
Philippine consumer business.
On April 5, 2022, the Philippine Competition Commission (PCC) issued clearance on the
Bank’s proposed acquisition of assets and liabilities of Citibank N.A., Philippine Branch and
Citi Square Building Corporation, and shares in Citicorp Financial Services and Insurance
Brokerage Philippines, Inc. The PCC resolved to take no further action with respect to the
proposed acquisition. On July 14, 2022, the Monetary Board (MB) of the Bangko Sentral ng
Pilipinas (BSP), in its Resolution No. 1017, approved the Bank’s acquisition of Citigroup’s
consumer business in the Philippines.
On August 1, 2022, the Bank completed the acquisition of Citigroup Inc.’s consumer banking
business in the Philippines. The transaction is effected via (i) an asset and liability transfer of
the consumer banking activities of Citibank N.A., Philippines Branch, (ii) the sale of the
100% shares in Citicorp Financial Services and Insurance Brokerage Philippines, Inc., and
(iii) the sale of freehold and owned office premises and parking spaces in Citibank Square
building in Eastwood, Quezon City. The total cash consideration amounted to = P77.9 billion
based on the net assets of the Citi Philippines consumer banking business as of
July 31, 2022, plus an agreed premium.
As of December 31, 2022, the Bank is still in the process of completing the determination of
fair values of the assets and liabilities acquired, including the identified intangible assets. As
allowed by PFRS, the Group has provisionally assessed the fair values of the assets and
liabilities recognized, except for Cash and other cash items and Due from other banks. The
provisional fair values will be adjusted within one year from the acquisition date once
relevant information has been obtained.
*SGVFS169521*
The provisional fair values of the identifiable assets and liabilities acquired at the date of
acquisition are as follows (amounts in millions):
Provisional fair
values
recognized on
acquisition date
Assets
Cash and other cash items P1,598
=
Due from other banks 28,126
Loans and receivables 65,581
Bank premises, furniture and fixtures, and equipment 2,120
Other resources 2,694
Total assets 100,119
Liabilities
Deposit liabilities 65,265
Other liabilities 4,496
Total liabilities 69,761
Net assets acquired =30,358
P
The provisional goodwill from the acquisition is determined as follows (amounts in

millions):
Total Purchase price =77,849

P
Less: Provisional fair values of net assets acquired 30,358
Provisional Goodwill =47,491
P
The goodwill arising from the acquisition is attributed to the opportunities for future growth
in the credit card business of the Group, and expected synergies in the consumer banking
business of the combined Parent Bank and Citi acquired business.
The provisional fair value of the loans and receivables acquired as part of the business
combination amounted to = P65.58 billion, with gross contractual amount of = P69.44 billion.
Had the acquisition occurred at the beginning of 2022, the consolidated total operating
income would have increased by = P8.21 billion and net income would have increased by
=1.24 billion.
P
Cash outflow from Acquisition of business, net of cash acquired by the Group and the Parent
Bank follows:
Group Parent Bank(1)

Purchase price =77,849
P =72,752
P
Less: Cash acquired from the acquisition of business 29,724 28,383
Net cash outflow from the Acquisition =48,125
P =44,369
P
(1) For purposes of the Parent Bank financial statements, the purchase price above excludes the purchase of
shares in CFSI amounting to P =5.10 billion, which is included in ‘acquisition of an investment in subsidiaries
and associates’ in the statement of cash flows.
*SGVFS169521*
(b) CSB was incorporated and registered with the SEC on December 9, 1965. It is a thrift bank
specializing in granting teacher’s loans under the Department of Education’s Automatic
Payroll Deduction System. CSB has 149 branches as of December 31, 2022.
On July 5, 2018 and July 10, 2018, the BOD and the stockholders, respectively, of CSB
approved the plan of merger with PR Savings Bank, with CSB as the surviving entity. On
December 20, 2018, the Monetary Board (MB) of the BSP approved the merger subject to
certain conditions, including completion of the merger within one year from the date of
receipt of the BSP approval and that the merger should be effective on the date the SEC
issues the certificate of merger. On December 27, 2018 and February 28, 2019, the BSP and
the SEC, respectively, approved the merger between CSB and PR Savings Bank, with CSB
as the surviving entity.
PR Savings Bank was the 14th largest thrift bank in the country. Most of its 102 offices are
located in Luzon offering motorcycle, agri-machinery, and salary loans to over 131,000
borrowers, mostly from the mass market segment. The transaction enabled CSB to expand
its reach in Luzon, and enter into new market segments, such as motorcycle and agri-
machinery financing.
On December 20, 2018, the MB of BSP granted certain merger incentives, including
temporary relief from compliance with the minimum CAR of 10% on solo basis for both the
CSB and PRSB from June 2018 until the effectivity of the merger, provided that the CSB’s
CAR shall not fall below 7%; ten-year amortization of the goodwill from July 2018 to June
2028, and staggered booking of loan impairment determined based on BSP’s examination
of PR Savings Bank as of June 30, 2018 over a period of 5 years to start on the year the
merger becomes effective. Subsequently, CSB recognized the required loan impairment
amount outright as part of the determination of the final fair value of assets acquired at the
date of the business combination.
CSB’s CAR, after the effectivity of the merger, increased from 8.9% in December 2018 to
11.9% in March 2019. For prudential reporting, the Bank is amortizing the goodwill
approved by the BSP for the next 10 years. The required annual amortization of goodwill for
prudential reporting purposes of CSB is =
P272.94 million. The difference between the final
goodwill under PFRS and the BSP approved goodwill was reflected as a reduction in
Retained Earnings for prudential reporting to the BSP.
(c) PETNET, more widely-known by its retail brand name PERA HUB, has the largest network
of Western Union outlets in the Philippines. PETNET has over 3,714 outlets nationwide. It
offers a variety of cash-based services including remittance, currency exchange and bills
payment.
(d) FAIR Bank was registered with the SEC on September 15, 1998 primarily to engage in the
business of extending rural credit to small farmers and tenants and to deserving rural
industries or enterprises. FAIR Bank has one (1) banking office and ten (10) branches
located all over Cebu and Negros Occidental areas.
In 2020, CSB and UIC further infused additional capital amounting to = P41.45 million
(equivalent to 414,543 common shares at = P100 par value) and = P43.15 million (equivalent to
431,157 common shares at P =100 par value), respectively, or a total of =
P84.60 million. The
aggregate additional infusion in 2020 resulted in UIC’s ownership in FAIR Bank further
increasing to 44.33%, while CSB’s ownership remained the same at 49%.
*SGVFS169521*
On July 8, 2021, UIC acquired the remaining 199,998 shares held by the non-controlling
interest of FAIR Bank for P
=50.15 per share (P
=10.2 million), further increasing the percentage
of ownership of UIC from 44.33% to 51%, while CSB’s ownership interest stood at 49%.
(e) UIC was incorporated and registered with the SEC on December 20, 1993. It is presently
engaged in business as a holding company authorized to hold investments of real and
personal properties, including shares of stocks, bonds, debentures, notes and other securities
and obligations, without engaging in business of an investment company or broker or dealer
in securities of stocks.
UIC holds investments of the Group’s thrift banks, rural banks and remittance companies. In
addition, through its wholly-owned subsidiaries, FUPI and FUIFAI, UIC is also engaged in
the servicing of existing pre-need plans, and being an agent for life and non-life insurance
products.
(f) On February 11, 2019, the BSP approved the Parent Bank’s incorporation of UBX
Philippines Corporation (UBX). UBX was incorporated to invest in, hold, own, purchase,
lease manage, sell or otherwise dispose of real and personal properties of every kind and
description. It shall also engage in the development of financial technology innovations and
engage in electronic commerce business.
In October 2018, UIC incorporated UBX SG. On March 21, 2019, UBX then entered into an
SPA with UIC to purchase 100 ordinary shares of UBX SG, a Singapore-based entity
incorporated by UIC in October 2018, for a total consideration amounting to SGD100.
Similar to UBX, UBX SG is incorporated to engage in the development of financial
technology innovations and engage in electronic commerce business.
On November 27, 2020, the Parent Bank’s BOD approved the additional capital infusion of
=500 million into UBX. The capital infusion was approved by the BSP on February 15,
P
2021. The additional capital is intended to grow UBX’ business operations and venture
platforms.
(g) In February 2019, CSB and UIC acquired 70% ownership of Bangko Kabayan, with CSB
owning 49% and UIC owning 21%. The transaction was approved by BSP and Philippine
Competition Commission (PCC) on September 19, 2019 and January 9, 2020, respectively.
On March 12, 2020, the parties executed the Deed of Absolute Sale, which is determined to
be the Group’s acquisition date. On the same date, CSB and UIC paid 70% of the total
purchase price, bringing the total payment to 90% of the purchase price. The remaining 10%
deposited as a retention amount in an escrow account has been released to the sellers in
November 2021.
Bangko Kabayan is authorized to engage in the business of extending financial services to

farmers, employees, entrepreneurs, commercial, manufacturing and industrial enterprises and
to such other persons or entities that require financial intermediation, and to have and to
exercise all authority and powers, and to do and perform all acts, and to transact all business
which may legally be done by thrift banks organized under and in accordance with the
existing New Thrift Banks Act of 1995 (Republic Act No. 7906). It converted its existing
microfinance banking office to a branch-lite unit and has 23 branches, including the head
office, in the areas of Batangas, Laguna and Quezon (Southern Luzon), and one branch-lite
in Lobo, Batangas.
*SGVFS169521*
(h) On January 5, 2018, CSB and UIC executed an SPA to acquire 75% ownership interest of
PBI through a combination of (a) subscription to 18,000,000 new shares and (b) purchase of
11,980,916 common shares from the major stockholders. On February 24, 2020, the BSP
approved the application of CSB and UIC to acquire 75% ownership of PBI.
On July 13, 2020, BSP noted a clarification made by the PCC in its acknowledgement letter
indicating that PCC does not categorically declare that the acquisition does not breach the
thresholds prescribed by PCC and its IRR, leaving the parties involved with the responsibility
to ensure that they fully comply with the notification requirement. The PCC issued a Letter
of Non-Coverage declaring that the transaction is not subject to compulsory notification on
August 5, 2020. For convenience purposes, the Group used July 31, 2020 as the date of
business combination.
On October 7, 2021, UIC acquired the remaining 19,993,640 shares held by the
non-controlling interest of PBI for =
P1.80 per share (P
=36.0 million), further increasing the
percentage of ownership of UIC from 26% to 51%, while CSB’s ownership interest stood
at 49%.
PBI is authorized to engage in the business of extending credit to farmers, tenants, and rural
industries or enterprises, and to transact all business that may be legally done by rural banks
formed under and in accordance with the existing Rural Banks Act (Republic Act No. 7353).
The principal office address of PBI is located at Del Rosario St., Poblacion, Balasan, lloilo,
and operates an extension office in Pototan, lloilo, for the purpose of providing microfinance
loans along with its primary banking services, and a branch at No. 243 E. Lopez St., Brgy.
Lourdes, Jaro, lloilo City.
(i) In its letter dated July 15, 2021, the BSP approved the application for authority to establish a
digital bank, to be known as UnionDigital Bank, Inc. (UnionDigital), a wholly-owned
subsidiary of the Bank, subject to regulatory conditions. The BSP subsequently granted the
Authority to Register with the SEC. On November 25, 2021, the SEC approved
UnionDigital's Articles of Incorporation and its By-Laws and issued its Certificate of
Incorporation. The Parent Bank subscribed to 100,000,000 new common shares of
UnionDigital at par value = P10 per share totaling =
P1.0 billion.
On June 24, 2022, the BOD of the Parent Bank approved to infuse additional capital to
UnionDigital of up to =
P2.0 billion.
On July 12, 2022, UnionDigital was granted the Certificate of Authority to Operate as a
digital bank. Accordingly, UnionDigital started its operations on July 18, 2022. On the same
date, the Parent Bank infused P
=1.0 billion to UnionDigital.
In its letter dated October 27, 2022, the BSP approved the Parent Bank's request for
additional equity investment of up to =P2.0 billion in UnionDigital. The Parent Bank then
infused additional capital to UnionDigital in tranches for a total amount of P
=1.0 billion. As
of December 31, 2022, the Parent Bank’s total equity investment in UnionDigital amounted
to =
P3.0 billion.
*SGVFS169521*
UnionDigital was organized to engage in, and carry on, the general business of a digital bank,
including such other expanded services as may be approved by the MB of the BSP such as
creating, developing, owning, maintaining, distributing, and marketing a digital platform that
allows the bank to offer digital services, and issues mortgage and chattel mortgage
certificates, buys and sells them or accept them in to such terms and conditions as may be
prescribed by the MB of BSP.
(j) Bangko Kabayan, FAIR Bank and PBI are in the process of seeking regulatory approvals to
merge, with Bangko Kabayan as the surviving entity. On March 21, 2022, the Philippine
Competition Commission (PCC) acknowledged that the proposed merger does not breach the
thresholds for compulsory notification. The PDIC consent and BSP approval were obtained
on June 17, 2022 and September 12, 2022, respectively. The Group is waiting approval of
the merger from the SEC.
Non-operating subsidiaries
(a) The BOD of FUDC authorized to temporarily suspend its business operations effective
June 1, 2021 and until such time that management, with the approval of the BOD of FUDC,
deems it appropriate to resume operations.
(b) UBPSI was incorporated and registered with the SEC on March 2, 1993. It was organized to
engage in the business of buying, selling or dealing in stocks and other securities. In January
1995, as approved by UBPSI’s stockholders and BOD, UBPSI sold its stock exchange seat in
the PSE. Accordingly, UBPSI ceased its stock brokerage activities.
(c) UCBC was registered in the SEC on June 14, 1994. It was organized to engage in the foreign
currency brokerage business. On March 23, 2001, the BOD of UCBC approved the cessation
of its business operations effective on April 16, 2001. Since then, UCBC’s activities were
significantly limited to the settlement of its liabilities. The BOD and the stockholders of
UCBC have approved to shorten UCBC’s corporate term to December 31, 2016. UCBC has
secured a tax clearance from the Bureau of Internal Revenue (BIR) in 2018. UCBC has
secured certificate from the SEC last April 8, 2022 amending the Article IV shortening the
term of existence thereby dissolving the corporation.
(d) UDC was registered with the SEC on September 8, 1998. It was organized to handle the
centralized branch accounting services as well as the processing of credit card application
forms of the Parent Bank and the entire backroom operations of FUPI. On July 1, 2003, the
BOD of UDC approved the cessation of its business operations effective on August 30, 2003,
and subsequently shortened its corporate term to December 31, 2017 by amending its
Articles of Incorporation. The services previously handled by UDC are now undertaken by
the Financial Services Group of the Parent Bank. UDC is still in process of securing the tax
clearance from the BIR.
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Corporate Information and
Summary of Significant Accounting Policies -1-
(e) IVCC was incorporated and registered with the SEC on October 10, 1980. It was organized
to develop, promote, aid and assist financially any small or medium scale enterprises and to
purchase, receive, take or grant, hold, convey, sell, lease, pledge, mortgage and otherwise
deal with such real and personal property, including securities and bonds of other
corporations as the transaction of the lawful business of the corporation may reasonably and
necessarily require, subject to the limitations prescribed by law. IVCC has ceased operations
since 1992.
The total assets, liabilities and capital funds of these non-operating subsidiaries amounted to
=12,436, =
P P3,341 and = P9,095, respectively, as of December 31, 2022 and = P5,011, =P3,158 and
=1,853, respectively, as of December 31, 2021.
P
The Bank’s registered address, which is also its principal place of business, is at UnionBank
Plaza, Meralco Avenue corner Onyx Street and Sapphire Road, Ortigas Center, Pasig City.
AEVI’s registered address is located at NAC Tower, 32nd Street, Bonifacio Global City, Taguig
City, Metro Manila.
Approval of Financial Statements

The consolidated financial statements of UnionBank and Subsidiaries (the Group) and the
financial statements of the Parent Bank as of and for each of the three years in the period ended
December 31, 2022 were authorized for issue by the Bank’s BOD on February 27, 2023.
2. Summary of Significant Accounting Policies
The significant accounting policies that have been used in the preparation of these financial
statements are summarized below. These policies have been consistently applied to all the years
presented, unless otherwise stated.
Basis of Preparation of Financial Statements
(a) Statement of Compliance with Philippine Financial Reporting Standards
The consolidated financial statements of the Group and the financial statements of the Bank
have been prepared in accordance with Philippine Financial Reporting Standards (PFRS).
PFRSs are adopted by the Financial Reporting Standards Council (FRSC) from the
pronouncements issued by the International Accounting Standards Board (IASB), and
approved by the Philippine Board of Accountancy.
The financial statements have been prepared using the measurement bases specified by PFRS
for each type of resource, liability, income and expense.
The measurement bases are more fully described in the accounting policies that follow.
(b) Presentation of Financial Statements
The financial statements are presented in accordance with Philippine Accounting Standards
(PAS 1), Presentation of Financial Statements. The Group presents statement of
comprehensive income separate from the statement of income.
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(c) Functional and Presentation Currency
The financial statements of the Group include the accounts maintained in the Regular
Banking Unit (RBU) and Foreign Currency Deposit Unit (FCDU). The functional currency
of RBU and FCDU is Philippine Peso (PHP) and United States Dollar (USD), respectively.
For financial reporting purposes, FCDU accounts and foreign currency-denominated
accounts in the RBU are translated into their equivalents in PHP (see accounting policy
on Foreign Currency Translation).
The financial statements of these units are combined after eliminating inter-unit accounts.
These are presented in Philippine pesos, and all values are presented in thousands of
Philippine Pesos except when otherwise indicated.
Items included in the financial statements of the Group are measured using its functional currency,
the currency of the primary economic environment in which the Group operates.
Adoption of New and Amended PFRS

The accounting policies adopted are consistent with those of the previous financial year,
except that the Bank has adopted the following new accounting pronouncements starting
January 1, 2022. Adoption of these pronouncements did not have any significant impact on the
Bank’s financial position or performance unless otherwise indicated.
 Amendments to PFRS 3, Reference to the Conceptual Framework

 Amendments to PAS 16 , Plant and Equipment: Proceeds before Intended Use
 Amendments to PAS 37, Onerous Contracts – Costs of Fulfilling a Contract
 Annual Improvements to PFRSs 2018-2020 Cycle
• Amendments to PFRS 1, First-time Adoption of Philippines Financial Reporting
Standards, Subsidiary as a first-time adopter
• Amendments to PFRS 9, Financial Instruments, Fees in the ’10 per cent’ test for
derecognition of financial liabilities
• Amendments to PAS 41, Agriculture, Taxation in fair value measurements
Standards Issued but not yet Effective

Pronouncements issued but not yet effective are listed below. Unless otherwise indicated, the
Group does not expect that the future adoption of the said pronouncements will have a significant
impact on its consolidated financial statements. The Group intends to adopt the following
pronouncements when they become effective.
Effective beginning on or after January 1, 2023

 Amendments to PAS 1, Classification of Liabilities as Current or Non-current
 PFRS 17, Insurance Contracts
Deferred effectivity
 Amendments to PFRS 10, Consolidated Financial Statements, and PAS 28, Sale or
Contribution of Assets between an Investor and its Associate or Joint Venture
Basis of Consolidated Financial Statements

The Group’s financial statements comprise the accounts of the Parent Bank and its subsidiaries,
as enumerated in Note 1 and as disclosed under Note 15, after the elimination of material
intercompany transactions. All intercompany resources and liabilities, equity, income, and
expenses and cash flows relating to transactions with subsidiaries are eliminated in full.
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Unrealized profits and losses from intercompany transactions that are recognized in the separate
financial statements are also eliminated in full. Intercompany losses that indicate impairment are
recognized in the Group’s financial statements.
The financial statements of the subsidiaries are prepared in the same reporting period as the
Parent Bank using consistent accounting policies.
Non-controlling Interests
Non-controlling interest represents the portion of profit or loss and net assets not owned, directly
or indirectly, by the Parent Bank.
The Group’s transactions with non-controlling interests that do not result in loss of control are
accounted for as equity transactions - that is, as transaction with the owners of the Group in their
capacity as owners. The difference between the fair value of any consideration paid and the
relevant share acquired of the carrying value of the net assets of the subsidiary is recognized in
capital funds. Disposals of equity investments to non-controlling interests may result in gains
and losses for the Group that are also recognized in capital funds.
When the Group ceases to have control over a subsidiary, any retained interest in the entity is
remeasured to its fair value at the date when control is lost, with the change in carrying amount
recognized in the statement of income. The fair value is the initial carrying amount for the
purposes of subsequently accounting for the retained interest as an associate, joint venture or
financial asset. In addition, any amounts previously recognized in other comprehensive income
in respect of that entity are accounted for as if the Group had directly disposed of the related
resources or liabilities. This may mean that amounts previously recognized in other
comprehensive income are reclassified to profit or loss.
Investment in Subsidiaries
Subsidiaries are entities (including structured entities) over which the Group has control. The
Group controls an entity when it has the power over the entity, it is exposed, or has rights to,
variable returns from its involvement with the entity, and it has the ability to affect those returns
through its power over the entity. Subsidiaries are consolidated from the date the Group obtains
control.
The Group reassesses whether or not it controls an entity if facts and circumstances indicate that
there are changes to one or more of the three elements of controls indicated above. Accordingly,
entities are deconsolidated from the date that control ceases.
In the Parent Bank’s separate financial statements, investments in subsidiaries are initially
recognized at cost and subsequently accounted for using the equity method (see Note 15).
All subsequent changes to the share in the equity of the subsidiaries are recognized in the
carrying amount of the Parent Bank’s investment. Changes resulting from the profit or loss
generated by the subsidiaries are reported as Share in net profit of subsidiaries under
Miscellaneous income account in the Parent Bank’s separate statement of income.
Changes resulting from other comprehensive income of the subsidiaries are recognized in other
comprehensive income of the Parent Bank. Any distributions received from the subsidiaries
(e.g., dividends) are recognized as reduction in the carrying amount of investment in subsidiaries.
However, when the Parent Bank’s share of losses in a subsidiary equals or exceeds its interest in
the subsidiary, including any other unsecured receivables, the Parent Bank does not recognize
further losses, unless it has incurred obligations or made payments on behalf of the subsidiary. If
*SGVFS169521*
the subsidiary subsequently reports profits, the Parent Bank recognizes its share on those profits
only after its share of the profits exceeds the accumulated share of losses that has previously not
been recognized.
In computing the Parent Bank’s share in net profit or loss of subsidiaries, unrealized gains or
losses on transactions between the Parent Bank and its subsidiaries are eliminated to the extent of
the Parent Bank’s interest in the subsidiaries. Where unrealized losses are eliminated, the
underlying asset is also tested for impairment from a group perspective.
The Parent Bank holds interests in various subsidiaries as presented in Notes 1 and 15.
Investment in Associates
Associates pertain to all entities over which the Group and the Parent Bank have significant
influence. Significant influence is the power to participate in the financial and operating policy
decisions of the investee, but is not control or joint control over those policies. Investment in
associates is accounted for under the equity method of accounting.
Business Combinations and Goodwill

Business acquisitions are accounted for using the acquisition method of accounting. This
requires recognizing and measuring the identifiable assets acquired, the liabilities assumed and
any non-controlling interest in the acquiree. The consideration transferred for the acquisition of a
subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interests
issued by the Group, if any. The consideration transferred also includes the fair value of any
asset or liability resulting from a contingent consideration arrangement.
Acquisition-related costs are expensed as incurred and subsequent change in the fair value of
contingent consideration is recognized directly in the statement of income.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business
combination are measured initially at their fair values at the acquisition date. On an acquisition-
by-acquisition basis, the Group recognizes any non-controlling interest in the acquiree, either at
fair value or at the non-controlling interest’s proportionate share of the recognized amounts of
acquiree’s identifiable net assets.
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s
share of the net identifiable assets of the acquired subsidiary at the date of acquisition.
Subsequent to initial recognition, goodwill is measured at cost less any accumulated impairment
losses. Goodwill is tested annually for impairment. Impairment losses on goodwill are not
reversed.
Gain on bargain purchase which is the excess of the Group’s interest in the net fair value of net
identifiable assets acquired over acquisition cost is recognized directly to profit.
For the purpose of impairment testing, goodwill is allocated to cash-generating units or groups of
cash-generating units that are expected to benefit from the business combination in which the
goodwill arose.
Gains and losses on the disposal of an interest in a subsidiary include the carrying amount of
goodwill relating to it.
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If the business combination is achieved in stages, the acquirer is required to remeasure its
previously held equity interest in the acquiree at its acquisition-date fair value and recognize the
resulting gain or loss, if any, in the statement of income, as appropriate.
Any contingent consideration to be transferred by the Group is recognized at fair value at the
acquisition date. Subsequent changes to the fair value of the contingent consideration that is
deemed to be an asset or liability is recognized in accordance with PAS 37, Provisions,
Contingent Liabilities and Contingent Assets, either in the statement of income or as a charge to
other comprehensive income. Contingent consideration that is classified as capital funds is not
remeasured, and its subsequent settlement is accounted for within capital funds.
Fair Value Measurement

The Group measures financial instruments such as financial assets at fair value through profit or
loss (FVTPL) and fair value through other comprehensive income (FVOCI) at fair value at each
reporting date. Also, fair values of financial instruments measured at amortized cost and
investment properties are disclosed in Note 7.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:
 in the principal market for the asset or liability, or
 in the absence of a principal market, in the most advantageous market for the asset or
liability.
The principal or the most advantageous market must be accessible to the Group. The fair value
of an asset or a liability is measured using the assumptions that market participants would use
when pricing the asset or liability, assuming that market participants act in their economic best
interest.
If an asset or a liability measured at fair value has a bid price and ask price, the price within the
bid-ask spread is the most representative of fair value in the circumstance shall be used to
measure fair value regardless of where the input is categorized within the fair value hierarchy.
The fair value measurement of a nonfinancial asset takes into account the market participant's
ability to generate economic benefits by using the asset in its highest and best use or by selling it
to another market participant that would use the asset in its highest and best use.
The Group uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable
inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements
are categorized within the fair value hierarchy, described in Note 7, based on the lowest level
input that is significant to the fair value measurement as a whole.
For assets and liabilities that are recognized in the financial statements on a recurring basis, the
Group determines whether transfers have occurred between levels in the hierarchy by
re-assessing categorization (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.
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Financial Instruments - Initial Recognition and Subsequent Measurement

Date of recognition
Financial assets and liabilities, with the exception of loans and advances to customers and
balances due to customers, are initially recognised on the trade date, i.e., the date that the Group
becomes a party to the contractual provisions of the instrument. This includes regular way trades:
purchases or sales of financial-assets that require delivery of assets within the time frame
generally established by regulation or convention in the market place. Loans and advances to
customers are recognised when funds are transferred to the customers’ accounts. The Group
recognises balances due to customers when funds are transferred to the Group.
Initial measurement of financial instruments

The classification of financial instruments at initial recognition depends on their contractual
terms and the business model for managing the instruments, as described below. Financial
instruments are initially measured at their fair value; except in the case of financial assets and
financial liabilities recorded at FVTPL, transaction costs are added to, or subtracted from, this
amount. When the fair value of financial instruments at initial recognition differs from the
transaction price, the Group accounts for the Day 1 profit or loss, as described below.
‘Day 1’ difference
Where the transaction price in a non-active market is different from the fair value based on other
observable current market transactions in the same instrument or based on a valuation technique
whose variables include only data from observable market, the Group recognizes the difference
between the transaction price and the fair value (a ‘Day 1’difference) in the statement of income
unless it qualifies for recognition as some other type of asset. In cases where transaction price
used is made of data which is not observable, the difference between the transaction price and
model value is only recognized in the statement of income when the inputs become observable or
when the instrument is derecognized. For each transaction, the Group determines the appropriate
method of recognizing the ‘Day 1’ difference amount.
Measurement categories of financial assets and liabilities

The Group classifies all of its financial assets based on the business model for managing the
assets and the asset’s contractual terms, measured either at amortized cost, at FVOCI or at
FVTPL.
The Group classifies and measures its derivative and trading portfolio at FVTPL. The Group
may designate financial instruments at FVTPL, if so doing eliminates or significantly reduces
measurement or recognition inconsistencies.
Financial Assets
Financial assets are recognized when the Group becomes a party to the contractual terms of the
financial instrument. For purposes of classifying financial assets, an instrument is considered as
an equity instrument if it is non-derivative and meets the definition of equity for the issuer in
accordance with the criteria under PAS 32, Financial Instruments: Presentation. All other
non-derivative financial instruments are treated as debt instruments.
(a) Classification, Measurement and Reclassification of Financial Assets
Under PFRS 9, the classification and measurement of financial assets is driven by the entity’s
contractual cash flow characteristics of the financial assets and business model for managing
the financial assets.
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As part of its classification process, the Group assesses the contractual terms of financial
assets to identify whether they meet the SPPI test. ‘Principal’ for the purpose of this test is
defined as the fair value of the financial asset at initial recognition and may change over the
life of the financial asset (e.g., if there are repayments of principal or amortization of the
premium or discount).
The most significant elements of interest within a lending arrangement are typically the
consideration for the time value of money and credit risk. To make the SPPI assessment, the
Group applies judgement and considers relevant factors such as the currency in which the
financial asset is denominated, and the period for which the interest rate is set.
In contrast, contractual terms that introduce a more than de minimis exposure to risks or
volatility in the contractual cash flows that are unrelated to a basic lending arrangement do
not give rise to contractual cash flows that are solely payments of principal and interest on
the amount outstanding. In such cases, the financial asset is required to be measured at
FVTPL.
The Group determines its business model at the level that best reflects how it manages
groups of financial assets to achieve its business objective.
The Group's business model is not assessed on an instrument-by-instrument basis, but at a

higher level of aggregated portfolios and is based on observable factors such as:
 how the performance of the business model and the financial assets held within that
business model are evaluated and reported to the entity's key management personnel
 the risks that affect the performance of the business model (and the financial assets held
within that business model) and, in particular, the way those risks are managed
 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)
 the expected frequency, value and timing of sales are also important aspects of
the Group’s assessment.
The business model assessment is based on reasonably expected scenarios without taking
'worst case' or 'stress case’ scenarios into account. If cash flows after initial recognition are
realized in a way that is different from the Group's original expectations, the Group does not
change the classification of the remaining financial assets held in that business model, but
incorporates such information when assessing newly originated or newly purchased financial
assets going forward.
The Group’s measurement categories are described below:
Financial Assets at Amortized Cost

Financial assets are measured at amortized cost if both of the following conditions are met:
 the asset is held within the Group’s business model whose objective is to hold financial
assets in order to collect contractual cash flows; and,
 the contractual terms of the instrument give rise, on specified dates, to cash flows that are
SPPI on the principal amount outstanding.
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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 impairment in value.
The Group’s financial assets at amortized cost are presented in the statement of financial
position as Due from BSP, Due from other banks, Interbank loans receivable, Financial
assets at amortized cost under Trading and investment securities, Loans and other receivables
and certain accounts under Other resources.
For purposes of cash flows reporting and presentation, cash and cash equivalents comprise
accounts with original maturities of three months or less, including Cash and other cash
items, non-restricted balances of Due from BSP, Due from other banks, Interbank loans
receivable and Securities purchased under repurchase agreements included in Loans and
other receivables. These generally include cash on hand, demand deposits and short-term,
highly liquid investments readily convertible to known amounts of cash and which are
subject to insignificant risk of changes in value.
The Group may irrevocably elect at initial recognition to classify a financial asset that meets
the amortized cost criteria above as at FVTPL if that designation eliminates or significantly
reduces an accounting mismatch had the financial asset been measured at amortized cost.
Financial Assets at FVTPL

Debt instruments that do not meet the amortized cost criteria, or that meet the criteria but the
Group has chosen to designate as at FVTPL at initial recognition, are classified as financial
assets at FVTPL. Equity investments are classified as financial assets at FVTPL, unless the
Group designates an equity investment that is not held for trading as at FVOCI at initial
recognition. The Group’s financial assets at FVTPL include government securities,
corporate bonds and equity securities which are held for trading purposes.
A financial asset is considered as held for trading if:
 it has been acquired principally for the purpose of selling it in the near term;
 on initial recognition, it is part of a portfolio of identified financial instruments that the
Group manages together and has evidence of a recent actual pattern of short-term profit-
taking; or,
 it is a derivative that is not designated and effective as a hedging instrument or financial
guarantee.
Financial assets at FVTPL are measured at fair value. Related transaction costs are
recognized directly as expense in the statement of income. Unrealized gains and losses
arising from changes (mark-to-market) in the fair value of the financial assets at FVTPL
category and realized gains or losses arising from disposals of these instruments are included
in Gains (losses) on trading and investment securities at FVTPL and FVOCI account in the
statement of income.
Interest earned on these investments is reported in the statement of income under Interest
income account while dividend income is reported in the statement of income under
Miscellaneous income account when the right of payment has been established.
Financial Assets at FVOCI - Equity Investments

At initial recognition, the Group can make an irrevocable election (on an instrument-by-
instrument basis) to designate equity investments as at FVOCI; however, such designation is
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not permitted if the equity investment is held by the Group for trading. The Group has
designated certain equity instruments as at FVOCI on initial application of PFRS 9.
Equity financial assets at FVOCI are initially measured at fair value plus transaction costs.
Subsequently, they are measured at fair value, with no deduction for any disposal costs.
Gains and losses arising from changes in fair value are recognized in other comprehensive
income and accumulated in Net unrealized fair value gains (losses) on investment securities
in the statement of financial position. When the asset is disposed of, the cumulative gain or
loss previously recognized in the Net unrealized fair value gains (losses) on investment
securities account is not reclassified to profit or loss, but is reclassified directly to Surplus
free account.
Any dividends earned on holding these equity instruments are recognized in the statement of
income under Miscellaneous income account.
Financial Assets at FVOCI - Debt Instruments

The Group classifies debt instruments measured at FVOCI when both of the following
conditions are met:
 the instrument is held within a business model, the objective of which is achieved by
both collecting contractual cash flows and selling financial assets, and
 the contractual terms of the financial asset meet the SPPI test.
FVOCI debt instruments are subsequently measured at fair value with gains and losses
arising due to changes in fair value being recognized in OCI. Interest income and foreign
exchange gains and losses are recognized in the statement of income in the same manner as
for financial assets measured at amortized cost. The Expected Credit Loss (ECL) calculation
for financial assets at FVOCI is explained in the ‘Impairment of Financial Assets’ section.
On derecognition, cumulative gains or losses previously recognized in OCI are reclassified

from OCI to the statement of income.
Reclassification of financial assets

The Group can only reclassify financial assets if the objective of its business model for
managing those financial assets changes. Accordingly, the Group is required to reclassify
financial assets: (i) from amortized cost to FVTPL, if the objective of the business model
changes so that the amortized cost criteria are no longer met; and, (ii) from FVTPL to
amortized cost, if the objective of the business model changes so that the amortized cost
criteria start to be met and the characteristic of the instrument’s contractual cash flows meet
the amortized cost criteria.
A change in the objective of the Group’s business model will be effected only at the
beginning of the next reporting period following the change in the business model.
(b) Impairment of Financial Assets
The Group recognizes the allowance for expected credit losses for all loans and other debt
financial assets carried at amortized cost, together with loan commitments and financial
guarantee contracts. Equity instruments are not subject to impairment under
PFRS 9.
ECL represent possible credit losses that reflect an unbiased and probability-weighted
amount which is determined by evaluating a range of possible outcomes, the time value of
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Summary of Significant Accounting Policies - 10 -
money and reasonable and supportable information about past events, current conditions and
forecasts of future economic conditions. ECL allowances are measured at amounts equal to
either (i) 12-month ECL or (ii) lifetime ECL for those financial instruments which have
experienced a significant increase in credit risk (SICR) since initial recognition (General
Approach). The 12-month ECL is the portion of lifetime ECL that results from default
events on a financial instrument that are possible within the 12 months after the reporting
date. Lifetime ECL are credit losses that results from all possible default events over the
expected life of a financial instrument.
The Group has established a policy to perform an assessment, at the end of each reporting
period, of whether a financial instrument’s credit risk has increased significantly since initial
recognition, by considering the change in the risk of default occurring over the remaining life
of the financial instrument.
For non-credit-impaired financial instruments:
 Stage 1 consists of all non-impaired financial instruments which have not experienced a
SICR since initial recognition. The Group and the Parent Bank recognizes a 12-month
ECL for Stage 1 financial instruments.
 Stage 2 consists of all non-impaired financial instruments which have experienced a
SICR since initial recognition. The Group and the Parent Bank recognizes a lifetime
ECL for Stage 2 financial instruments.
For credit-impaired financial instruments:
 Financial instruments are classified as Stage 3 when there is objective evidence of

impairment as a result of one or more loss events that have occurred after initial
recognition with a negative impact on the estimated future cash flows of a loan or a
portfolio of loans. The ECL model requires that lifetime ECL be recognized for
impaired financial instruments.
The Group uses internal credit assessment and approvals at various levels to determine the
credit risk of exposures at initial recognition. Assessment can be quantitative or qualitative
and depends on the materiality of the facility or the complexity of the portfolio to be
assessed.
The Group defines a financial instrument as in default, which is fully aligned with the
definition of credit impaired, in all cases when the borrower becomes more than 90 days past
due on its contractual payments. As part of a qualitative assessment of whether a customer is
in default, the Group also considers a variety of instances that may indicate unlikeliness to
pay. When such events occur, the Group carefully considers whether the event should result
in treating the customer as defaulted. An instrument is considered to be no longer in default
(i.e., to have cured) when it no longer meets any of the default criteria for a consecutive
period of 180 days (i.e., consecutive payments from the borrowers for 180 days).
The criteria for determining whether credit risk has increased significantly vary by portfolio
and include quantitative changes in probabilities of default and qualitative factors such as
downgrade in the credit rating of the borrowers and a backstop based on delinquency. The
credit risk of a particular exposure is deemed to have increased significantly since initial
recognition if, based on the Group’s internal credit assessment, the borrower or counterparty
is determined to require close monitoring or with well-defined credit weaknesses. Days past
due are determined by counting the number of days since the earliest elapsed due date in
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respect of which full payment has not been received. In subsequent reporting periods, if the
credit risk of the financial instrument improves such that there is no longer a SICR since
initial recognition, the Group shall revert to recognizing a 12-month ECL. All exposures are
therefore provided with ECLs, in the context of SICR status.
ECL is a function of the Probability of Default (PD), Exposure at Default (EAD) and Loss
Given Default (LGD), with the timing of the loss also considered, and is estimated by
incorporating forward-looking economic information and through the use of experienced
credit judgment.
The PD represents the likelihood that a credit exposure will not be repaid and will go into
default in either a 12-month horizon for Stage 1 or lifetime horizon for Stage 2. The PD for
each individual instrument is modelled based on historical data and is estimated based on
current market conditions and reasonable and supportable information about future economic
conditions. The Group segmented its credit exposures and developed a corresponding PD
methodology for each portfolio. The PD methodology for each relevant portfolio is
determined based on the underlying nature or characteristic of the portfolio, behavior of the
accounts and materiality of the segment as compared to the total portfolio.
EAD is modelled on historic data and represents an estimate of the outstanding amount of
credit exposure at the time a default may occur. For off-balance sheet and undrawn amounts,
EAD includes an estimate of any further amounts that may be drawn at the time of default.
LGD is the amount that may not be recovered in the event of default and is modelled based
on historical cash flow recovery and reasonable and supportable information about future
economic conditions, where appropriate. LGD takes into consideration the amount and
quality of any collateral held.
(c) Derecognition of Financial Assets
A financial asset (or where applicable, a part of a financial asset or part of a group of
financial assets) is derecognized when the contractual rights to receive cash flows from the
financial instruments expire, or when the financial assets and all substantial risks and rewards
of ownership have been transferred to another party. If the Group neither transfers nor
retains substantially all the risks and rewards of ownership and continues to control the
transferred asset, the Group recognizes its retained interest in the asset and an associated
liability for amounts it may have to pay. If the Group retains substantially all the risks and
rewards of ownership of a transferred financial asset, the Group continues to recognize the
financial asset and also recognizes a collateralized borrowing for the proceeds received.
In certain circumstances, the Group modifies the original terms and conditions of a credit
exposure to form a new loan agreement or payment schedule. The modifications can be
given depending on the borrower’s or counterparty’s current or expected financial difficulty.
The modifications may include, but are not limited to, change in interest rate and terms,
principal amount, maturity date, date and amount of periodic payments and accrual of
interest and charges.
The Group derecognizes a financial asset when the terms and conditions have been
renegotiated to the extent that, substantially, it becomes a new asset, with the difference
between its carrying amount and the fair value of the new asset recognized as a derecognition
gain or loss in profit or loss, to the extent that an impairment loss has not already been
recorded.
*SGVFS169521*
The Group also performs a quantitative assessment similar to that being performed for
modification of financial liabilities. In performing the quantitative assessment, the Group
considers the new terms of a financial asset to be substantially different if the present value
of the cash flows under the new terms, including any fees paid net of any fees received and
discounted using the original effective interest rate, is at least 10% different from the present
value of the remaining cash flows of the original financial asset.
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 'new ' financial asset. Accordingly, the date of the modification shall be treated
as the date of initial recognition of that financial asset when applying the impairment
requirements to the modified financial asset. The newly recognized financial asset is
classified as Stage 1 for ECL measurement purposes, unless the new financial asset is
deemed to be originated as credit impaired (POCI). Distressed restructuring with indications
of unlikeliness to pay are categorized as impaired accounts and are moved to Stage 3.
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 Group 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 EIR for purchased or originated credit-impaired financial assets) and
recognizes a modification gain or loss in the statement of income.
Derivative Financial Instruments

The Group is a counterparty to derivatives contracts, such as forwards, swaps and warrants.
These contracts are entered into as a means of reducing or managing the Group’s foreign
exchange and interest rate exposures as well as those of its customers.
Derivatives are initially recognized at fair value on the date on which the derivative contract is
entered into and are subsequently measured at their fair values. Fair values are obtained from
quoted market prices in active markets, including recent market transactions. All derivatives are
carried as resources when fair value is positive and as liabilities when fair value is negative.
The best evidence of the fair value of a derivative at initial recognition is the transaction price
(the fair value of the consideration given or received) unless the fair value of that instrument is
evidenced by comparison with other observable current market transactions in the same
instrument. When such evidence exists, which indicates a fair value different from the
transaction price, the Group recognizes a gain or loss at initial recognition.
Changes in the fair value of derivatives are recognized in the statement of income.
Financial Liabilities
Financial liabilities which include deposit liabilities, bills payable, notes and bonds payable, and
other liabilities (except tax-related payables, pre-need reserves and post-employment defined
benefit obligation) are recognized when the Group becomes a party to the contractual terms of
the instrument.
Financial liabilities are recognized initially at their fair value and subsequently measured at
amortized cost using the effective interest method, for those with maturities beyond one year, less
settlement payments. All interest-related charges incurred on financial liabilities are recognized
as an expense in the statement of income under Interest expense.
*SGVFS169521*
Deposit liabilities are stated at amounts in which they are to be paid. Interest is accrued
periodically and recognized in a separate liability account before recognizing as part of deposit
liabilities.
Bills payable and Notes and bonds payable are recognized initially at fair value, which is the
issue proceeds (fair value of consideration received) less any issuance costs. These are
subsequently measured at amortized cost; any difference between the proceeds net of transaction
costs and the redemption value is recognized in the statement of income over the period of the
borrowings using the effective interest method.
Derivative liabilities, which are included as part of Other Liabilities, are recognized initially and
subsequently measured at fair value with changes in fair value recognized in the statement of
income.
Other liabilities, apart from derivative liabilities, are recognized initially at their fair value and
subsequently measured at amortized cost, using effective interest method for maturities beyond
one year, less settlement payments.
Financial liabilities are derecognized from the statement of financial position only when the
obligations are extinguished either through discharge, cancellation or expiration. Where an
existing financial liability is replaced by another from the same lender on substantially different
terms, or if the terms of an existing liability are substantially modified, such an exchange or
modification is treated as a derecognition of the original liability and a recognition of the new
liability, and the difference in the respective carrying amounts is recognized in the statement of
income.
Offsetting Financial Instruments

Financial resources and liabilities are offset and the resulting net amount, considered as a single
financial asset or financial liability, is reported in the statement of financial position when there is
a legally enforceable right to offset the recognized amounts and there is an intention to settle on a
net basis, or realize the asset and settle the liability simultaneously. The right of set-off must be
available at the end of the reporting period, that is, it is not contingent on future event. It must
also be enforceable in the normal course of business, in the event of default, and in the event of
insolvency or bankruptcy; and must be legally enforceable for both entity and all counterparties
to the financial instruments.
Bank Premises, Furniture, Fixtures and Equipment

Bank premises, furniture, fixtures and equipment are carried at acquisition cost less accumulated
depreciation and amortization, and any impairment in value.
The cost of an asset comprises its purchase price and directly attributable costs of bringing the
asset to working condition for its intended use. Expenditures for additions, major improvements
and renewals are capitalized, while expenditures for repairs and maintenance are charged to
expense as incurred.
Depreciation is computed on a straight-line basis over the estimated useful lives of the
depreciable assets as follows:
Buildings 25 - 50 years
Furniture, fixtures and equipment 5 - 10 years
*SGVFS169521*
Leasehold rights and improvements are amortized over the term of the lease or the estimated
useful lives of the improvements of five to ten years, whichever is shorter.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s
carrying amount is greater than its estimated recoverable amount.
The residual values, estimated useful lives and method of depreciation and amortization of bank
premises, furniture, fixtures and equipment (except land) are reviewed and adjusted if
appropriate, at the end of each reporting period.
If a change in use requires an item of bank premises, furniture, fixtures and equipment to be
reclassified to investment properties, the difference between the carrying amount of such asset
and its fair value as of the date of change in use is recognized in other comprehensive income and
accumulated in equity under the Other reserves account. If the asset is subsequently retired or
disposed of, the related revaluation surplus is transferred directly to Surplus free account.
An item of bank premises, furniture, fixtures and equipment, including the related accumulated
depreciation, amortization and impairment losses, is derecognized upon disposal or when no
future economic benefits are expected to arise from the continued use of the asset. Any gain or
loss arising on derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the item) is included in the statement of income in the year
the item is derecognized.
The Group classifies ROU assets as part of property and equipment. The Group recognizes ROU
assets at the commencement date of the lease (i.e., the date the underlying asset is available for
use). ROU assets are initially measured at cost, less any accumulated depreciation and
impairment losses, and adjusted for any remeasurement of lease liabilities. The initial cost of
ROU assets includes the amount 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 lessee in dismantling and removing the underlying asset,
restoring the site on which it is located or restoring the underlying asset to the condition required
by the terms and conditions of the lease, unless those costs are incurred to produce inventories.
Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the
lease term, the recognized ROU assets are depreciated on a straight-line basis over the shorter of
their estimated useful life and lease term. ROU assets are subject to impairment.
Investment Properties
Investment properties are properties held either to earn rental income or for capital appreciation
or for both, but not for sale in the ordinary course of business, use in the production or supply of
goods or services or for administrative purposes. These include parcels of land and buildings and
related improvements acquired by the Group from defaulting borrowers.
Investment properties are measured initially at cost, including transaction costs. An investment
property acquired through an exchange transaction is initially measured at fair value of the asset
acquired unless the fair value of such an asset cannot be measured in which case the investment
property acquired is measured at the carrying amount of the asset given up. Foreclosed
properties are classified under Investment properties from foreclosure date. Gain or loss from
foreclosure is included as part of Gain or loss on foreclosure account under Miscellaneous
Income section of the statement of income.
*SGVFS169521*
Subsequent to initial recognition, depreciable investment properties are carried at cost less
accumulated depreciation and amortization and impairment. Depreciation is computed using the
straight line method over the useful life of 50 years and 10 years for building held for lease and
other foreclosed properties, respectively. Land is carried at cost less any impairment in value.
Investment properties are derecognized when they have either been disposed of or when the
investment property is permanently withdrawn from use and no future benefit is expected from
its disposal. Any gains or losses on the retirement or disposal of an investment property are
recognized in the statement of income in the year of retirement or disposal. Expenditures
incurred after the investment properties have been put into operations, such as repairs and
maintenance costs and real estate taxes, are normally charged against income in the period in
which costs are incurred.
Transfers are made to investment properties when, and only when, there is a change in use
evidenced by ending of owner occupation, commencement of an operating lease to another party
or ending of construction or development. Transfers are made from investment properties when,
and only when, there is a change in use evidenced by commencement of owner occupation or
commencement of development with a view to sale.
Intangible Assets
Intangible assets include goodwill and acquired computer software. Goodwill represents the
excess of the acquisition cost over the fair value of the net identifiable assets arising from the
acquisition of a business. Goodwill has indefinite useful life and, thus, not subject to
amortization but requires an annual test for impairment. Goodwill is subsequently carried at cost
less accumulated impairment losses.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. Goodwill
sometimes cannot be allocated on a non-arbitrary basis to individual cash-generating units, but
only to groups of cash-generating units. As a result, the lowest level within the Group at which
goodwill is monitored for internal management purposes sometimes comprises a number of cash-
generating units. The Group’s cash-generating unit represents major business segments of the
Parent Bank and the subsidiaries of the Group.
Computer software used in administration is accounted for under the cost model. The cost of the
asset is the amount of cash or cash equivalents paid or the fair value of the other considerations
given up to acquire an asset at the time of its acquisition or production.
Computer software are capitalized on the basis of the costs incurred to acquire, develop, and
install the specific software. These costs are amortized on a straight-line basis over the expected
useful lives ranging from five to ten years, as the lives of these intangible assets are considered
finite. These costs are recognized as part of Depreciation and amortization in the statement of
income. Costs associated with maintaining computer software are expensed as incurred. In
addition, intangible assets are subject to impairment testing.
When an intangible asset is disposed of, the gain or loss on disposal is determined as the
difference between the proceeds and the carrying amount of the asset and is recognized in the
statement of income.
Other Resources
Other resources pertain to resources controlled by the Group as a result of past events. These are
recognized in the financial statements only if recognition of that asset and of any resulting
*SGVFS169521*
income or expenses is a faithful representation of the resources and provides relevant information
about the resources.
Repurchase and reverse repurchase agreements

Securities sold under agreements to repurchase at a specified future date (‘repos’) are not
derecognized from the statement of financial position. The corresponding cash received,
including accrued interest, is recognized in the statement of financial position under ‘Bills
payable’ and is considered as a loan to the Group, reflecting the economic substance of such
transaction. For purposes of business model assessment, the Group considers the economic
substance of the transaction when analyzing whether sales within a portfolio provide evidence
related to how cash flows are realized.
Conversely, securities purchased under agreements to resell at a specified future date (‘reverse
repos’) are not recognized in the statement of financial position. The corresponding cash paid
including accrued interest, is recognized in the statement of financial position as SPURA, and is
considered a loan to the counterparty. The difference between the purchase price and resale price
is treated as interest income and is accrued over the life of the agreement using the EIR method.
Provisions and Contingencies

Provisions are recognized when present obligations will probably lead to an outflow of economic
resources and they can be estimated reliably even if the timing or amount of the outflow may still
be uncertain. A present obligation arises from the presence of a legal or constructive obligation
that has resulted from past events (e.g., legal dispute or onerous contracts).
Provisions are measured at the estimated expenditure required to settle the present obligation,
based on the most reliable evidence available at the end of the reporting period, including the
risks and uncertainties associated with the present obligation. Any reimbursement expected to be
received in the course of settlement of the present obligation is recognized, if virtually certain as
a separate asset, at an amount not exceeding the balance of the related provision. Where there are
a number of similar obligations, the likelihood that an outflow will be required in settlement is
determined by considering the class of obligations as a whole. When time value of money is
material, long-term provisions are discounted to their present values using a pretax rate that
reflects market assessment and the risks specific to the obligation. The increase in the provision
due to passage of time is recognized as interest expense. Provisions are reviewed at the end of
each reporting period and adjusted to reflect the current best estimate.
In those cases where the possible outflow of economic resource as a result of present obligations
is considered improbable or remote, or the amount to be provided for cannot be measured
reliably, no liability is recognized in the financial statements. Similarly, possible inflows of
economic benefits that do not yet meet the recognition criteria of an asset are considered
contingent assets, hence, are not recognized in the financial statements.
Pre-Need Reserves and Insurance Premium Reserves

(a) Pre-need Reserves
In the Group’s consolidated financial statements, pre-need reserves (PNR), presented as part
of Other liabilities in the consolidated statement of financial position, are recognized for all
pre-need benefits guaranteed and payable by FUPI as defined in the pre-need pension plan
contracts.
*SGVFS169521*
PNR for pension plans are determined using the requirements on provisioning of PAS 37 and
the specific method of computation required by the Insurance Commission (IC) as described
below.
The amount recognized as a provision to cover the PNR is the best estimate of the
expenditure required to settle the present obligation at the end of the reporting period. The
risks and uncertainties that inevitably surround many events and circumstances were taken
into account in reaching the best estimate of a provision.
PNR is computed based on the following considerations:
 On actively paying plans, provision is equivalent to the present value of future plan
benefits reduced by the present value of future trust fund contributions required per
product model discounted using the transitory discount rate which does not exceed the
lower of the attainable rate as certified by the Trustee, and the discount rate prescribed by
the IC in accordance with IC Circular Letter No. 23-2012, Valuation of Transitory
Pre-need Reserves, for old basket of plans previously approved by the SEC.
 On lapsed plans, provision is equivalent to the present value of future plan benefits
reduced by the present value of future trust fund contributions at lapse date, multiplied by
the reinstatement rate.
 On fully paid plans, provision is equivalent to the present value of future plan benefits
discounted using the transitory discount rate.
 Future events that may affect the foregoing amounts are reflected in the amount of the
provision for PNR where there is sufficient objective evidence that they will occur.
 The rates of surrender, cancellation, reinstatement, utilization and inflation, when

applied, represent the actual experience of FUPI in the last three years, or the industry, in
the absence of a reliable experience.
 The probability of pre-termination or surrender of fully paid plans are considered in

determining the PNR of fully paid plans. A pre-termination experience on fully paid
plans of 5% and below are considered insignificant. In such cases, derecognition of
liability shall be recorded at pre-termination date.
The computation of the foregoing assumptions is validated by the IC-accredited actuary

of FUPI.
Any excess in the amount of the trust fund as a result of the revised reserving
requirement shall neither be released from the fund nor be credited/set-off to future
required contributions.
(b) Insurance Premium Reserves
Insurance premium reserves for pension plans represents FUPI’s actuarially-determined

liability in accordance with PAS 37 to guarantee the benefits provided in the plan in
consideration of the insurance premium funds assigned for this purpose as determined and
certified by the IC-accredited actuary.
*SGVFS169521*
Capital Funds
Common stock represents the nominal value of shares that have been issued.
Additional paid-in capital includes any premiums received on the issuance of common stock.
Any transaction costs associated with the issuance of shares are deducted from additional paid-in
capital, net of any related income tax benefits.
Surplus free includes all current and prior period results as reported in the statement of income
and which are available and not restricted for use by the Group, reduced by the amounts of
dividend declared, if any.
Surplus reserves pertains to the following:
(a) Portion of the Group’s income from trust operations set-up on a yearly basis in compliance
with BSP regulations. The surplus set-up is equal to 10% of the net profit accruing from the
trust business until the surplus shall amount to 20% of authorized capital stock. The reserve
shall not be paid out as dividends, but losses accruing in the course of the trust business may
be charged against this account.
(b) Accumulated trust fund income of FUPI that is automatically restricted to payments of
benefits of planholders and releases from appropriation representing the amounts of trust
fund income that pertains to the matured and pre-terminated plans of planholders which have
been withdrawn from the trust fund during the year, in accordance with the amended Pre-
need Uniform Chart of Accounts (PNUCA).
(c) The difference of the 1% required General Loan Loss Provision on Stage 1 on-balance sheet
loans over the computed allowance for credit losses on Stage 1 accounts as required by the
BSP Circular No. 1011 - Guidelines on the Adoption of the Philippine Financial Reporting
Standard (PFRS) 9 - Financial Instruments.
Net unrealized fair value gains (losses) on investment securities pertains to cumulative
mark-to-market valuation of financial assets at FVOCI.
Remeasurements of defined benefit plan refer to accumulated actuarial losses, net of gains, as a
result of remeasurements of post-employment defined benefit plan and return on plan assets
(excluding amount included in net interest).
Other reserves pertains to exchange differences arising from the translation of the Parent Bank’s
Foreign Currency Deposit Unit (FCDU) operations and UBX SG, which is taken to the statement
of comprehensive income.
Non-controlling interests represent the portion of the net resources and profit or loss not
attributable to the Group which are presented separately in the Group’s statement of income and
within the capital funds in the Group’s statements of financial position and changes in capital
funds.
Revenue Recognition
Revenue from contracts with customers is recognised when control of the goods or services are
transferred to the customer at an amount that reflects the consideration to which the Group
expects to be entitled in exchange for those goods or services. Expenses are recognized in the
statement of income upon utilization of the resources or services or at the date these are incurred.
*SGVFS169521*
All finance costs are reported on an accrual basis. The following specific recognition criteria of
income and expenses must also be met before income or expense is recognized:
(a) Interest income recognized using the effective interest rate method - Interest income is
recognized in the statement of income for all instruments measured at amortized cost and
debt instruments classified as financial assets at FVOCI using the effective interest method.
The effective interest method is a method of calculating the amortized cost of a financial
asset or a financial liability and of allocating the interest income or interest expense over the
relevant period. The effective interest rate is the rate that exactly discounts estimated future
cash payments or receipts through the expected life of the financial instrument or, when
appropriate, a shorter period to the net carrying amount of the financial asset or financial
liability. When calculating the effective interest rate, the Group estimates cash flows
considering all contractual terms of the financial instrument but does not consider future
credit losses. The calculation includes all fees paid or received between parties to the
contract that are an integral part of the effective interest rate, transaction costs and all other
premiums or discounts.
(b) Other interest income - Interest income on all trading assets and financial assets mandatorily
required to be measured at FVTPL is recognized using the contractual interest rate and is
included under Interest Income on financial assets at fair value through profit or loss.
(c) Service charges, fees and commissions - Service charges, fees and commissions are generally
recognized when the service has been provided. Loan commitment fees are earned as
services are provided, recognized as other income on a time proportion basis over the
commitment period.
The Group has a loyalty points programme as part of its credit cards business which allows
customers to accumulate points that can be redeemed for free products. The loyalty points
give rise to a separate performance obligation as they provide a material right to the
customer.
A portion of the interchange fee is allocated to the loyalty points awarded to customers based
on relative stand-alone selling price and recognised as a contract liability until the points are
redeemed. Revenue is recognised upon redemption of products by the customer.
(d) Gain (loss) on trading and investment securities - Gain (loss) on trading and investment
securities is recognized when the contractual rights on the securities is transferred to the
buyer (at an amount equal to the difference of the selling price and the carrying amount of
securities) and as a result of the mark-to market valuation of outstanding securities classified
as FVTPL at year-end.
(e) Miscellaneous income includes the following accounts:
 Commissions earned on credit cards - Commissions earned on credit cards are

recognized as income upon receipt from member establishments of charges arising from
credit availments by credit cardholders. These commissions are computed based on
certain agreed rates and are deducted from amounts remittable to member
establishments. Purchases by the credit cardholders, collectible on installment basis, are
recorded at the cost of the items purchased. Interest income is recognized on every term
of installment billed to the cardholders and computed using the effective interest method.
*SGVFS169521*
 Gain (loss) from assets sold or exchanged - Profit or loss from assets sold or exchanged
is recognized when the control of the assets is transferred to the buyer or when the
collectibility of the entire sales price is reasonably assured.
 Rental - Rental income arising from leased properties is accounted for on a straight-line
basis over the lease terms on ongoing leases.
 Income from bancassurance business - Exclusive access fee (EAF) related to the
bancassurance partnership is recognized as revenue by reference to the completion rate
of the target cumulative annualized premium earned.
 Dividend - Dividend income is recognized when the Group’s right to receive payment is
established.
 Income from trust operations - Trust fees related to investment funds are recognized in
reference to the net asset value of the funds. The same principle is applied for wealth
management, financial planning and custody services that are continuously provided over
an extended period of time.
Leases
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the
contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration.
The Group as Lessee accounts for its leases as follows:
Group as Lessor
Leases, which do not transfer to the lessee substantially all the risks and benefits of ownership of
the asset, are classified as operating leases. Lease income from operating leases is recognized as
income in the statement of income on a straight-line basis over the lease term.
The Group determines whether an arrangement is, or contains a lease based on the substance of
the arrangement. It makes an assessment of whether the fulfilment of the arrangement is
dependent on the use of a specific asset or assets and the arrangement conveys a right to use the
asset.
Group as a lessee
The Group applies a single recognition and measurement approach for all leases, except for
short-term leases and leases of low-value assets. The Group recognizes lease liabilities to make
lease payments and ROU assets representing the right to use the underlying assets.
i. Right-of-use assets
The Group recognizes ROU assets at the commencement date of the lease (i.e., the date the
underlying asset is available for use). ROU assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities.
The cost of ROU assets includes the amount of lease liabilities recognized, initial direct costs
incurred, and lease payments made at or before the commencement date less any lease
incentives received.
ii. Lease liabilities

At the commencement date of the lease, the Group recognizes lease liabilities measured at
the present value of lease payments to be made over the lease term. The lease payments
*SGVFS169521*
include fixed payments (including in-substance fixed payments) less any lease incentives
receivable, variable lease payments that depend on an index or a rate, and amounts expected
to be paid under residual value guarantees. The lease payments also include the exercise
price of a purchase option reasonably certain to be exercised by the Group and payments of
penalties for terminating a lease, if the lease term reflects the Group exercising the option to
terminate. Variable lease payments that do not depend on an index or a rate are recognized
as expense (unless they are incurred to produce inventories) in the period on which the event
or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Group 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 liabilities is
increased to reflect the accretion of interest recognized under Interest expense of bills
payable and other liabilities and reduced for the lease payments made. In addition, the
carrying amount of lease liabilities is remeasured if there is a modification, a change in the
lease term, a change in the lease payments (e.g., changes to future payments resulting from a
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.
iii. Short-term leases and leases of low-value assets

The Group applies the short-term lease recognition exemption to its short-term leases for
some branches and the related parking spaces, stalls used for specific events and several
office equipment (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). It also applies the lease of low-
value assets recognition exemption to leases of ATM offsite locations, signages and several
items of office equipment that are considered of low value (i.e., P =250,000 and below). 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 as is recognized as part of ‘Occupancy’ in the statement
of income.
Foreign Currency Transactions and Translations

The accounting records of the Group are maintained in Philippine pesos except for the FCDU of
the Parent Bank which are maintained in United States (U.S.) dollars. Foreign currency
transactions during the period are translated into the functional currency at exchange rates which
approximate those prevailing on transaction dates.
For financial reporting purposes, the accounts of the FCDU are translated into their equivalents in
Philippine pesos based on the Philippine Dealing System closing rates (PDSCR) prevailing at the
end of the period (for resources and liabilities) and at the average PDSCR for the period (for
income and expenses).
Foreign exchange gains and losses resulting from the settlement of foreign currency transactions
and from the translation at period-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognized in the statement of income.
Changes in the fair value of monetary financial assets denominated in foreign currency are
analyzed between translation differences resulting from changes in the amortized cost of the
security and other changes in the carrying amount of the security. Translation differences related
to changes in amortized cost are recognized in the statement of income, and other changes in the
carrying amount are recognized in other comprehensive income.
*SGVFS169521*
Impairment of Non-financial Assets

The Group’s intangible assets (consisting of goodwill and computer software recorded as part of
Other resources), bank premises, furniture, fixtures and equipment, investment properties,
investments in subsidiaries (for Parent Bank only) and other non-financial assets are subject to
impairment testing. Intangible assets with an indefinite useful life, such as goodwill, are tested
for impairment at least annually. All other individual assets or cash-generating units are tested
for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable.
For purposes of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash flows (cash-generating units). As a result, some assets are tested
individually for impairment and some are tested at cash-generating unit level.
Impairment loss is recognized in the statement of income for the amount by which the asset’s or
cash-generating unit’s carrying amount exceeds its recoverable amount, which is the higher of
fair value, reflecting market conditions, less costs to sell and value in use. In determining value
in use, management estimates the expected future cash flows from each cash-generating unit and
determines the suitable interest rate in order to calculate the present value of those cash flows.
The data used for impairment testing procedures are directly linked to the Group’s latest
approved budget, adjusted as necessary to exclude the effects of asset enhancements. Discount
factors are determined individually for each cash-generating unit and reflect management’s
assessment of respective risk profiles, such as market and asset-specific risk factors.
All assets are subsequently reassessed for indications that an impairment loss previously
recognized may no longer exist and the carrying amount of the asset is adjusted to the
recoverable amount resulting in the reversal of the impairment loss, except for goodwill.
Employee Benefits
The Group’s employment benefits to employees are as follows:
(a) Post-employment Defined Benefit Plan

A defined benefit plan is a post-employment plan that defines an amount of post-employment
benefit that an employee will receive on retirement, usually dependent on one or more factors
such as age, years of service and salary. The legal obligation for any benefits from this kind
of post-employment plan remains with the Group, even if plan assets for funding the defined
benefit plan have been acquired. Plan assets may include assets specifically designated to a
long-term benefit fund, as well as qualifying insurance policies. The Group’s defined benefit
post-employment plan covers all regular full-time employees. The pension plan is
tax-qualified, noncontributory and administered by a trustee.
The liability recognized in the statement of financial position for a defined benefit plan
(included as part of Other Liabilities) is the present value of the defined benefit obligation
(DBO) at the end of the reporting period less the fair value of plan assets. The DBO is
calculated annually by independent actuaries using the projected unit credit method. The
present value of the DBO is determined by discounting the estimated future cash outflows
arising from expected benefit payments using a discount rate derived from the interest rates
of a zero-coupon government bond as published by Philippine Dealing & Exchange Corp.,
that are denominated in the currency in which the benefits will be paid and that have terms to
maturity approximating to the terms of the related post-employment liability.
Remeasurements, comprising of actuarial gains and losses arising from experience

adjustments and changes in actuarial assumptions and the return on plan assets (excluding
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amount included in net interest) are reflected immediately in the statement of financial
position with a charge or credit recognized in other comprehensive income in the period in
which they arise. Net interest is calculated by applying the discount rate at the beginning of
the period to the net defined benefit liability or asset and is included as part of Interest
expense or Interest income in the statement of income.
Past-service costs are recognized immediately in the statement of income in the period of a
plan amendment or curtailment.
(b) Post-employment Defined Contribution Plan

A defined contribution plan is a post-employment plan under which the Group pays fixed
contributions. The Group has no legal or constructive obligations to pay further
contributions after payment of the fixed contribution. The contributions recognized in
respect of defined contribution plans are expensed as they fall due. Liabilities and assets may
be recognized if underpayment or prepayment has occurred.
(c) Termination Benefits

Termination benefits are payable when employment is terminated by the Group before the
normal retirement date, or whenever an employee accepts voluntary redundancy in exchange
for these benefits. The Group recognizes termination benefits at the earlier of when it can no
longer withdraw the offer of such benefits and when it recognizes costs for a restructuring
that is within the scope of PAS 37 and involves the payment of termination benefits. In the
case of an offer made to encourage voluntary redundancy, the termination benefits are
measured based on the number of employees expected to accept the offer. Benefits falling
due more than 12 months after the end of the reporting period are discounted to their present
value.
(d) Profit-Sharing and Bonus Plans

The Group recognizes a liability and an expense for bonuses and profit-sharing, based on a
formula that takes into consideration the profit attributable to the Parent Bank’s shareholders,
as indicated in the statement of income, after certain regulatory adjustments. The Group
recognizes a provision where it is contractually obliged to pay the bonus plans. The Group
also recognizes a provision for profit-sharing and bonus plans where there is a past practice
that has created a constructive obligation, whether paid in cash or in the form of shares of the
Parent Bank to be issued under the Employee Stock Plan.
(e) Compensated Absences

Compensated absences are recognized for the number of paid leave days (including holiday
entitlement) remaining at the end of the reporting date.
They are included as part of Accrued taxes and other expenses under the Other liabilities
account in the statement of financial position at the undiscounted amount that the Group
expects to pay as a result of the unused entitlement.
Income Taxes
Tax expense recognized in the statement of income comprises the sum of deferred tax and current
tax not recognized in other comprehensive income or directly in capital funds, if any.
Current tax assets or liabilities comprise those claims from, or obligations to, fiscal authorities
relating to the current or prior reporting period, that are uncollected or unpaid at the end of the
reporting period. They are calculated using the tax rates and tax laws applicable to the fiscal
periods to which they relate, based on the taxable profit for the year. All changes to current tax
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assets or liabilities are recognized as a component of tax expense in the statement of income.
Management periodically evaluates positions taken in the tax returns with respect to situations in
which applicable tax regulations are subject to interpretations and establishes provisions where
appropriate.
Deferred tax is accounted for using the liability method on temporary differences at the end of
the reporting period between the tax base of assets and liabilities and their carrying amounts for
financial reporting purposes. Under the liability method, with certain exceptions, deferred tax
liabilities are recognized for all taxable temporary differences and deferred tax assets are
recognized for all deductible temporary differences and the carryforward of unused tax losses and
unused tax credits to the extent that it is probable that taxable profit will be available against
which the deferred tax assets can be utilized. Unrecognized deferred tax assets are reassessed at
the end of each reporting period and are recognized to the extent that it has become probable that
future taxable profit will be available to allow such deferred tax assets to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the
period when the asset is realized or the liability is settled, based on tax rates and tax laws that
have been enacted or substantively enacted at the end of the reporting period.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and
reduced to the extent that it is probable that sufficient taxable profit will be available to allow all
or part of the deferred tax assets to be utilized.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would
follow from the manner in which the Group expects, at the end of the reporting period, to recover
or settle the carrying amount of its assets and liabilities.
Most changes in deferred tax assets or liabilities are recognized as a component of tax expense in
the statement of income, except to the extent that it relates to items recognized in other
comprehensive income or directly in capital funds. In this case, the tax is also recognized in
other comprehensive income or directly in capital funds, respectively.
Deferred tax assets and deferred tax liabilities are offset if the Group has a legally enforceable
right to set off current tax assets against current tax liabilities and the deferred taxes relate to the
same entity and the same taxation authority.
Related Party Relationships and Transactions

Related Party Transactions are transactions or dealings with related parties, regardless of whether
a price is charged. These covers all types of transactions both on and off-balance sheet and
regardless of which side of the transaction/deal of the bank is acting.
Parties are said to be related if one has direct or indirect control as well as significant influence
over the other. Related Parties of the Bank include, but is not limited to: (a) DOSRI, subsidiaries,
affiliates, and any party that directly or indirectly has control over or is subjected to the control of
the Bank as well as those with direct and indirect linkages to it, (b) the Bank's and its affiliated
companies' directors, officers, stockholders, and their related interests and close family members,
and (c) other persons and juridical entities whose interests may pose potential conflict with the
Bank.
In considering each possible related party relationship, attention is directed to the substance of
the relationship and not merely on the legal form.
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Earnings Per Share

Basic earnings per share are determined by dividing the net profit for the year attributable to
common shareholders by the weighted average number of common shares outstanding during the
year, after retroactive effect to any stock dividends declared in the current year.
Diluted earnings per common share are also computed by dividing net profit by the weighted
average number of common shares subscribed and outstanding at the end of the reporting period,
after making adjustments to reflect the effects of any potentially dilutive preferred shares, stock
options and warrants.
Trust and Fiduciary Activities

The Group commonly acts as trustee and in other fiduciary capacities that result in the holding or
placing of assets on behalf of individuals, trusts, retirement benefit plans and other institutions.
These resources and the related income arising thereon are excluded from these financial
statements, as they are neither resources nor income of the Group.
Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to
the Group’s chief operating decision-maker. The chief operating decision-maker is responsible
for allocating resources and assessing performance of the operating segments.
In identifying its operating segments, management generally follows the Group’s products and
services as disclosed in Note 6, which represent the main products and services provided by the
Group.
Each of these operating segments is managed separately as each of these services require
different technologies and other resources as well as marketing approaches. All inter-segment
transfers are carried out at arm’s length prices.
The measurement policies the Group uses for segment reporting under PFRS 8, Operating
Segments, are the same as those used in its consolidated financial statements in arriving at the
operating profit of the operating segments.
In addition, corporate assets which are not directly attributable to the business activities of any
operating segment are not allocated to a particular segment.
There have been no changes from prior periods in the measurement methods used to determine
reported segment profit or loss.
The Group’s operations are organized according to the nature of the products and services
provided. Financial information on business segments is presented in Note 6.
Events After the End of the Reporting Period

Any post-year-end event that provides additional information about the Group’s position at the
statement of financial position 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.
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Summary of Accounting Judgments and Estimates - 26 -
3. Summary of Accounting Judgments and Estimates
The preparation of the Group’s financial statements in accordance with PFRS requires
management to make judgments and estimates that affect the amounts reported in the financial
statements and related notes. Judgments and estimates are continually evaluated and are based
on historical experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances. Actual results may ultimately differ from
these estimates.
Unless otherwise stated, below significant judgments and estimates apply as of December 31,
2022 and 2021 and for each of the three years in the period ended December 31, 2022.
Critical Management Judgments in Applying Accounting Policies

In the process of applying the Group’s accounting policies, management has made the following
judgments, apart from those involving estimation, which have the most significant effect on the
amounts recognized in the financial statements:
Evaluation of business model in managing financial instruments

The Group manages its financial assets based on business models that maintain adequate level of
financial assets to match its expected cash outflows, largely arising from customers’ withdrawals
and continuing loan disbursements to borrowers, while maintaining a strategic portfolio of
financial assets for investment and trading activities consistent with its risk appetite.
In determining the classification of a financial instrument under PFRS 9, the Group developed
business models which reflect how it manages its portfolio of financial instruments. The Group’s
business models need not be assessed at entity level or as a whole but applied at the level of a
portfolio of financial instruments (i.e., group of financial instruments that are managed together
by the Group) and not on an instrument-by-instrument basis (i.e., not based on intention or
specific characteristics of individual financial instrument). The Group evaluates in which
business model a financial instrument or a portfolio of financial instruments belong to taking into
consideration the objectives of each business model established by the Group.
PFRS 9 emphasizes that if more than an infrequent and more than an insignificant sale is made
out of a portfolio of financial assets carried at amortized cost, an entity should assess whether and
how such sales are consistent with the objective of collecting contractual cash flows. In making
this judgment, the Group considers certain circumstances documented in its business model
manual to assess that an increase in the frequency or value of sales of financial instruments in a
particular period is not necessarily inconsistent with a held-to-collect business model if the Group
can explain the reasons for those sales and why those sales do not reflect a change in the Group’s
objective for the business model.
In December 2020, the BOD of the Parent Bank approved to sell a third of the securities from
HTC FCDU subportfolio. The BOD also approved for the Parent Bank to be ready to sell the
remaining securities under this HTC subportfolio to strengthen the financial position of the
Parent Bank for the expected effects of the Covid 19 pandemic and increase capital allocation to
client based business i.e., lending business. The Parent Bank assessed that these changes
represent change in intention for the securities under the HTC FCDU subportfolio as a response
to the current and expected changes in market conditions and did not constitute a change in the
business model under PFRS 9.
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In view of the above mentioned change in intention for the FCDU securities subportfolio and in
response to changes in market conditions, the Parent Bank sold investment securities in 2022 and
2021.
In 2022 and 2021, the Parent Bank sold investment securities under the HTC FCDU sub portfolio
with carrying amount of = P1.7 billion and =
P47.4 billion, respectively, resulting in Gain on sale of
investment securities at amortized cost totaling =
P100.2 million and =P8.5 billion, respectively.
The Parent Bank has assessed that the above sales do not reflect a change in the business model
of the Group. Accordingly, the remaining investment securities in the affected hold-to-collect
subportfolio are continued to be measured at amortized cost. As of December 31, 2022 and
2021, the carrying amounts of the remaining Investment securities at amortized cost in the FCDU
subportfolio amounted to P=33.4 billion and =
P32.5 billion, respectively, while fair values
amounted to =P28.5 billion and P
=33.5 billion, respectively.
Testing the cash flow characteristics of financial assets

In determining the classification of financial assets under PFRS 9, the Group assesses whether
the contractual terms of the financial assets give rise on specified dates to cash flows that are
SPPI on the principal outstanding, with interest representing time value of money and credit risk
associated with the principal amount outstanding. The assessment as to whether the cash flows
meet the test is made in the currency in which the financial asset is denominated. Any other
contractual term that changes the timing or amount of cash flows (unless it is a variable interest
rate that represents time value of money and credit risk) does not meet the amortized cost criteria.
In cases where the relationship between the passage of time and the interest rate of the financial
instrument may be imperfect, known as modified time value of money, the Group assesses the
modified time value of money feature to determine whether the financial instrument still meets
the SPPI criterion. The objective of the assessment is to determine how different the
undiscounted contractual cash flows could be from the undiscounted cash flows that would arise
if the time value of money element was not modified (the benchmark cash flows). If the
resulting difference is significant, the SPPI criterion is not met.
In view of this, the Group considers the effect of the modified time value of money element in
each reporting period and cumulatively over the life of the financial instrument
Determining the lease term of contracts with renewal and termination options - Group as lessee
The Group determines the lease term as the non-cancellable term of the lease, together with any
periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any
periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.
The Group has several lease contracts that include extension and termination options. The Group
determined that generally, the options to extend or terminate the lease are not included in the
determination of the lease term. These optional periods are not enforceable, as the Group cannot
enforce the extension of the lease without the agreement from the lessor, and therefore, the Group
does not have the right to use the asset beyond the non-cancellable period.
Key Sources of Estimation Uncertainty

The following are the key assumptions concerning the future, and other key sources of estimation
uncertainty at the end of the reporting period, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next reporting period:
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Estimation of impairment losses on Loans and other receivables, Financial assets at amortized
cost and Financial assets at FVOCI
The measurement of impairment losses under PFRS 9 across all categories of financial assets
requires judgment, in particular, the estimation of the amount and timing of future cash flows and
collateral values when determining impairment losses and the assessment of a significant
increase in credit risk. These estimates are driven by a number of factors, changes in which can
result in different levels of allowances.
The Group’s ECL calculations are outputs of complex models with a number of underlying
assumptions regarding the choice of variable inputs and their interdependencies.
Significant factors affecting the estimates on the ECL model include:
 The Group’s internal grading model, which assigns PDs to individual grades. Scorecards
have been updated to consider how clients are being affected by and are responding to
COVID-19-related challenges. Sensitivities were applied, during risk rating, to consider
uncertainties on available economic forecasts.
 The Group’s criteria for assessing if there has been a SICR which is the basis for measuring
allowances for financial assets on a Lifetime Expected Credit Loss (LTECL) basis. There
are also qualitative assessments to consider significant increase in credit risk based on the
identified risk profiles of their accounts and portfolios. In 2022, the Parent Bank updated the
stage assessment to include the additional considerations related to movements in the
borrower’s credit rating when determining the significant increase in credit risk, which
include rating threshold triggers.
 The Group’s definition of default. The Bank considers the regulatory requirement and the
Bank’s indicators of loss events.
 Development of ECL models, including the various formulas and the choice of inputs.
Similar to prior years, in 2022, models have been reviewed and revised as appropriate based
on latest reviews, economic outlook and studies from external sources. In 2022, the Group
updated the PD models for wholesale and certain retail portfolios, the LGD model for home
loan, and the EAD for credit cards considering the credit conversion factor (CCF).
 Determination of associations between macroeconomic scenarios and economic inputs, such
as unemployment levels, level of government spending, and collateral values, and their effect
on PDs, EADs and LGDs. As the economy progresses to post-pandemic scenario, analyses
and forecasts were reviewed and updated if needed as the economic conditions evolved. The
quantitative overlays were complemented by experience-based expert judgment inputs
through management overlays considered integral to the systematic process.
The carrying amount of loans and other receivables and the related allowance are disclosed in
Notes 14 and 20, while the carrying amount of debt financial assets classified under amortized
cost and fair value through other comprehensive income and the related allowances are disclosed
in Notes 12 and 20.
Fair value of derivatives

Management applies valuation techniques to determine the fair value of derivatives that are not
quoted in active markets. This requires management to develop estimates and assumptions based
on market inputs, using observable data that market participants would use in pricing the
instrument. Where such data is not observable, management uses its best estimate. Estimated
fair values of financial instruments may vary from the actual prices that would be achieved in an
arm’s length transaction at the reporting date.
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Valuation techniques are used to determine fair values which are validated and periodically
reviewed. To the extent practicable, models use observable data, however, areas such as credit
risk (both own and counterparty), volatilities and correlations require management to make
estimates. Changes in assumptions could affect reported fair value of financial instruments.
The Group uses judgment to select a variety of methods and make assumptions that are mainly
based on market conditions existing at the end of each reporting period.
The fair values of derivatives as of December 31, 2022 and 2021 are presented and grouped into
the fair value hierarchy in Note 7.
Recognition of deferred tax assets
Deferred tax assets are recognized for all unused tax losses and temporary differences to the
extent that it is probable that future taxable profit will be available against which the losses can
be 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 income
together with future tax planning strategies.
In the 2022 taxable year, the Parent Bank applied its NOLCO and MCIT amounting to
=2.24 billion and =
P P221.52 million, respectively. The Parent Bank expects to continue to be in
taxable position in the succeeding years. Accordingly, the Parent Bank has fully recognized its
deferred tax assets, including its unapplied NOLCO and MCIT as of December 31, 2022 and
2021.
The carrying value of recognized deferred tax assets is disclosed in Note 30.
Impairment of goodwill
The Group conducts an annual review for any impairment in the value of goodwill. Goodwill is
written down for impairment where the recoverable amount of the related CGU is insufficient to
support its carrying value. The Group determines the recoverable value of goodwill by
discounting the estimated excess earnings using the weighted-average cost of capital (WACC) as
the discount rate. The Group estimates the discount rate used for the computation of the net
present value by reference to industry cost of capital.
The recoverable amount of the CGU is determined based on a value-in-use calculation using cash
flow projections from financial budgets covering a five-year period. Financial budget for the
immediately succeeding year is approved by senior management and BOD of the Parent Bank,
while the financial budgets for the other years of cash flow projections are determined by
corporate planning group and the relevant business units. In 2022, the key assumptions used in
the calculation of value-in-use, including loan and deposit growth rates, net interest margin, have
been updated to consider the effect of the pandemic. The discount rates used for the computation
of the value in use for various CGUs (see Note 18) are based on the pre-tax discount rates
ranging from 11.63% to 34.81% and from 9.12% to 11.91% as of December 31, 2022 and 2021,
respectively. The long-term growth rates used range from nil to 11.2% as of December 31, 2022
and 2021. Bank’s sources of goodwill and its carrying amount are disclosed in Note 18.
As a result of the ongoing economic uncertainty brought about by the COVID-19 pandemic, the
results of the motorcycle lending business as a separate CGU identified from the acquisition of
PR Savings Bank was lower than expected. The volume of loan releases was lower and the
motorcycle loans reported higher NPLs, indicating a potential impairment of goodwill. This
setback on the business plans for motorcycle lending business resulted in the recognition of
impairment of goodwill on CSB’s motorcycle loan business amounting to
=529.60 million and =
P P223.17 million in 2021 and 2020, respectively.
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The Group assessed that the other remaining CGUs remain unimpaired. The impairment charge
is recorded under Miscellaneous expenses in the statement of income.
Though management believes that the assumptions used in the estimation of fair values reflected
in the financial statements are appropriate and reasonable, significant changes in these
assumptions may materially affect the assessment of recoverable values and any resulting
impairment loss could have a material adverse effect on the results of operations.
The carrying amount of goodwill is disclosed in Note 18.
Valuation of post-employment and other benefits

The determination of the Group’s obligation and cost of pension and other post-employment
benefits is dependent on the selection of certain assumptions used by actuaries in calculating such
amounts. Those assumptions include, among others, discount rates, expected rates of salary
increase, and employee turnover rate. A significant change in any of these actuarial assumptions
may generally affect the recognized expense, other comprehensive income or loss and the
carrying amount of the post-employment benefit obligation in the next reporting period.
The Group also estimates other employee benefit obligations and expenses, including the cost of
paid leaves based on historical leave availments of employees, subject to the Group and the
Parent Bank policies. These estimates may vary depending on future changes in salaries and
actual experiences during the year.
The amounts of post-employment defined benefit obligation and expense and an analysis of the
movements in the estimated present value of post-employment defined benefit obligation, as well
as significant assumptions such as salary rate increase, discount rates, and turnover rates used in
estimating such obligation are presented in Note 29.
Fair value determination of assets acquired and liabilities assumed from business combinations
As discussed in Note 1, on August 1, 2022, the Bank completed the acquisition of Citigroup
Inc.’s consumer banking business in the Philippines. The Group sought an independent valuation
for certain assets and liabilities acquired, including any identifiable intangible assets from the
acquisition. The valuation had not been completed by the date the financial statements were
approved for issue by the BOD. Pending the valuation, the Group provisionally determined the
fair values of the assets acquired and liabilities assumed from the acquisition.
In 2021, the Group finalized the determination of the fair values of the assets acquired and
liabilities assumed from the acquisitions of Bangko Kabayan and PBI (see Note 15).
The Group determines the acquisition-date fair values of identifiable assets acquired and
liabilities assumed from the acquiree without quoted market prices based on the following:
 For assets and liabilities that are short term in nature, carrying values approximate fair
values;
 For financial assets and liabilities that are long-term in nature, fair values are estimated
through the discounted cash flow methodology, using the appropriate market rates (e.g.,
current lending rates); and
 For nonfinancial assets such as property and equipment and investment properties, fair values
are determined based on an appraisal which follows sales comparison approach and
depreciated replacement cost approach depending on the highest and best use of the assets.
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Risk Management Objectives and Policies - 31 -
4. Risk Management Objectives and Policies
Risks are inherent in the business activities of the Group. Among its identified risks are credit
risk, liquidity risk, market risk, interest rate risk, foreign exchange risk, operational risk,
information security risk, legal risk, and regulatory risk. These are managed through a risk
management framework and governance structure that provides comprehensive controls and
management of major risks on an ongoing basis.
Risk management is the process by which the Group identifies its key risks, collects consistent
and understandable risk measures, decides which risks to take on or reduce and establishes
procedures for monitoring the resulting risk positions. The objective of risk management is to
ensure that the Group conducts its business within the risk levels set by the BOD while business
units pursue their objective of maximizing returns.
Risk Management Structure

The BOD of the Parent Bank exercises oversight over the Parent Bank’s risk management
process as a whole and through its various risk committees. For the purpose of day-to-day
management of risks, the Parent Bank has established independent Risk Management Units
(RMUs) that objectively review and ensure compliance with the risk parameters set by the BOD.
The RMUs are responsible for the monitoring and reporting of risks to senior management and
the various committees of the Parent Bank.
On the other hand, the risk management processes of its subsidiaries are handled separately by
their respective BODs.
The Parent Bank’s BOD is primarily responsible for setting the risk appetite, approving risk
parameters, proposed credit policies, and investment guidelines, as well as establishing the
overall risk-taking capacity of the Parent Bank. To fulfill its responsibilities in risk management,
the BOD has established the following committees, whose functions are described below.
(a) The Executive Committee (EXCOM), composed of seven (7) members of the BOD,
exercises certain functions as delegated by the BOD including, among others, the approval of
credit proposals, asset recovery and real and other properties acquired (ROPA) sales, and
such other transactions as may be initiated by the Bank units within the EXCOM’s delegated
limits.
(b) The Risk Management Committee (RMC) is composed of seven (7) non-executive directors
of the BOD, majority of whom are independent directors, including the Chairman. The RMC
advises the BOD regarding the Parent Bank’s overall current and future risk appetite,
oversees Senior Management’s adherence to the risk appetite statement, and reports on the
state of risk culture of the Parent Bank. The RMC oversees the Parent Bank’s risk
management framework and the risk management function. The RMC also provides
oversight, direction, and guidance to the other risk committees, specifically the Market Risk
Committee (MRC) and the Operations Risk Management Committee (ORMC).
(c) The MRC is composed of nine (9) members of the BOD, majority of whom are independent
directors, including the Chairman. The MRC is primarily responsible for reviewing the risk
management policies and practices relating to market risk including interest rate risk in the
banking book and liquidity risk.
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(d) The ORMC is composed of at least three (3) members of the BOD, with a majority of the
ORMC’s membership comprised of independent directors, including the Chairman. The
ORMC reviews various operational risk policies and practices and approves the operational
risk management framework which forms part of the Bank’s enterprise risk management
system and covers all business lines and functions of the Bank, including outsourced services
and services provided to external parties. The ORMC also provides oversight on the
implementation of a sound business continuity management framework.
(e) The Audit Committee is composed of seven (7) members, all non-executive and majority of
whom are independent, including the Chairman, most of whom are with accounting, auditing,
or related financial management expertise or experience. The skills, qualifications, and
experience of the committee members are appropriate for them to perform their duties as laid
down by the BOD.
The Audit Committee serves as principal agent of the BOD in ensuring independence of
the Parent Bank’s external auditors and the internal audit function. It also oversees the
Parent Bank’s financial reporting process on behalf of the BOD. It assists the BOD in
fulfilling its fiduciary responsibilities as to accounting policies, reporting practices and the
sufficiency of auditing relative thereto, and regulatory compliance.
To effectively perform these functions, the Audit Committee has a good understanding of the
Parent Bank’s business including the following: Parent Bank’s structure, businesses,
controls, and the types of transactions or other financial reporting matters applicable to the
Parent Bank as well as to determine whether the controls are adequate, functioning as
designed, and operating effectively. It also considers the potential effects of emerging
business risks and their impact on the Parent Bank’s financial position and results of
operations.
Among the responsibilities of the Audit Committee are:
 Oversight of the financial reporting process. The Audit Committee ensures that
the Parent Bank has a high-quality reporting process that provides transparent, consistent,
and comparable financial statements. In this regard, the Audit Committee works closely
with management especially the Office of the Financial Controller, the Internal Audit
Group (IAG), as well as the external auditors, to effectively monitor the financial
reporting process.
 Monitoring and evaluation of internal control. The Audit Committee, through the IAG,
monitors and evaluates the adequacy and effectiveness of the Parent Bank’s internal
control framework, integrity of financial reporting, and security of physical assets. The
Audit Committee ensures that a proactive and forward-looking approach on evaluation of
risks and controls is taken. The Audit Committee also ensures that periodic assessment
of the internal control system is conducted to identify weaknesses and evaluates its
robustness considering the risk profile and strategic direction of the Parent Bank.
 Oversight of the audit process. The Audit Committee is knowledgeable on audit

function and the audit process. The Audit Committee maintains supportive, trusting, and
inquisitive relationships with both internal and external auditors to enhance its
effectiveness.
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 Oversight of the outsourced internal audit activities. The Audit Committee oversees the
performance of the internal audit service provider and ensures that they comply with
sound internal auditing standards and other supplemental standards issued by regulatory
authorities/government agencies, as well as with relevant code of ethics.
 Oversees the implementation of Group Internal Audit Policy. The Audit Committee
oversees the implementation of the policy through the periodic reports on oversight of
the Group Internal Audit and takes appropriate action on any group internal oversight
issues identified. The Audit Committee reviews and evaluates the group internal audit
policy, and any amendments thereto, and endorses the same to the BOD for approval.
 Oversight of the whistle-blowing mechanism. The Audit Committee oversees the

establishment of a whistle-blowing mechanism in the Parent Bank by which officers and
staff shall in confidence raise concerns about possible improprieties or malpractices in
matters of financial reporting, internal control, auditing or other issues to persons or
entities that have the power to take corrective action. It also ensures that independent
investigation, appropriate follow-up, action, and subsequent resolution of complaints are
in place.
In the performance of these functions, the Audit Committee is supported by the IAG. The
Chief Audit Executive derives authority from and is directly accountable to the Audit
Committee. However, administratively, the Chief Audit Executive reports to the President of
the Parent Bank.
The IAG is entirely independent from all the other organizational units of the Parent Bank, as
well as from the personnel and work that are to be audited. It operates under the direct
control of the Audit Committee and is given an appropriate standing within the Parent Bank
to be free from bias and interference. The IAG is free to report its findings and appraisals
internally at its own initiative to the Audit Committee.
The IAG is authorized by the Audit Committee to have unrestricted access to all functions,
records, property, and personnel of the Bank subject to existing mandate and applicable laws.
This includes the authority to allocate resources, set audit frequencies, select subjects,
determine scope of work, and apply the techniques required to accomplish the audit
engagement objectives.
The IAG is also authorized to obtain the necessary assistance from personnel within the
Parent Bank units where they perform audits, as well as other specialized services within or
outside the Parent Bank.
The IAG presents its risk-based rolling 1-year audit plan that is forward-looking and
consistent with the Parent Bank’s strategic plans and priorities every quarter for approval by
the Audit Committee.
At least once a month, the Audit Committee meets to discuss the results of the assurance and
consulting engagements, and case investigations by IAG. Financial reporting and
Controllership related topics are also included as needed. The results of these meetings are
regularly reported by the Audit Committee Chairman to the BOD in its monthly meetings.
*SGVFS169521*
As the Bank continuously evolves towards its digitization strategy, IAG has undertaken
initiatives to adapt and expand its processes, and to provide relevant and timely
recommendations to the Bank. IAG has implemented continuous auditing process that aims
to provide assurance on high-risk, high-volume areas/process, on a real time, or near-real
time basis.
IAG adopted the Governance, Risk & Compliance (GRC) system which aims to integrate the
operational risk management across the Parent Bank. IAG also uses it as an audit
management system to aid in ensuring quality and completeness of documentation across its
different engagements. IAG also implemented remote auditing and leveraged on the
document management system of the Bank.
(f) The Corporate Governance Committee (CGC) is primarily responsible for helping the BOD
fulfill its corporate governance and compliance responsibilities. It is responsible for ensuring
the BOD’s effectiveness and due observance of corporate governance principles and of
oversight over the compliance risk management. It assists in the establishment of a
compliance program that facilitates the escalation and resolution of compliance issues
expeditiously.
The CGC is composed of nine (9) members of the BOD, all non-executive, majority of
whom, including its Chairman, are independent directors. Its specific duties include, among
others, making recommendations to the BOD regarding continuing education of directors,
overseeing the periodic performance evaluation of the 1) Board; 2) Board Committees;
3) Individual Directors; 4) Management-level Committees (through the Compliance and
Corporate Governance Office; and 5) Chief Compliance and Corporate Governance Officer
(CCO).
The CGC also performs oversight functions over the Compliance and Corporate Governance
Office (CCGO) and the following management-level committees: 1) Anti-Money Laundering
Committee and 2) Discipline Committee.
Senior management, through the CCO, periodically reports to the CGC the status of
regulatory audit and compliance testing findings until their closure. Any material breaches of
the compliance program are reported to and promptly addressed by the CCO within the
mechanisms defined by the Compliance Manual.
The Parent Bank’s CCO defines the Group’s minimum governance and compliance
requirements and works closely with the subsidiaries’ and affiliates’ Chief Compliance
Officers in the execution of these standards.
The CGC assumed the functions of the Nominations Committee (NomCom) and the
Compensation and Remuneration Committee (CompRem) upon the latter Committees’
dissolution. The NomCom review the qualifications of and screens candidates for the board
including nominees for independent directors and key officers of the Parent Bank. As part of
its added function, it also reviews the implementation of programs for identifying, retaining
and developing critical officers and the succession plan for various units in the organization.
The functions of the CompRem include overseeing implementation of the programs for
salaries and benefits of directors and senior management, and monitoring that the
performance scorecards for the Parent Bank and its officers are comprehensive and balanced,
and assessing the adequacy, effectiveness for driving performance and consistency of the
Parent Bank’s total compensation program vis-à-vis corporate philosophy and strategy.
*SGVFS169521*
The Parent Bank’s CCO assists the CGC in fulfilling its functions by apprising the same of
(1) pertinent regulations and other issuances relating to compliance or corporate governance,
(2) related regulatory issues and compliance initiatives affecting the various units and the
status of the corrective action plans, and (3) continuously giving updates thereon. In
addition, the CCO keeps the CGC abreast of best governance practices and discusses issues
being brought up among private organizations and individuals advocating good governance
philosophy.
(g) The Related Party Transaction Committee is a board-level committee composed of three (3)
members, all of whom are independent directors, including its Chairman. The Committee
assists the BOD in the fulfillment of its corporate governance responsibilities on related party
transactions by ensuring that these are transacted on arm’s length terms. The Committee
reviews and endorses the related party transactions to the BOD for approval or confirmation,
depending on the amounts involved.
The major risk types identified by the Group are discussed in the following sections:
Credit Risk
Credit risk is the risk of loss resulting from the failure of a borrower or counterparty to honor its
financial or contractual obligation to the Group. The risk may arise from lending, trade finance,
treasury, investments, derivatives and other activities undertaken by the Group. Credit risk is
managed through strategies, policies and limits that are approved by the respective BOD and/or
Credit Committee of the various companies within the Group. With respect to the Parent Bank, it
has a well-structured and standardized credit approval process and credit scoring system for each
of its business and/or product segments.
The Enterprise Risk Management (ERM) undertakes several functions with respect to credit risk
management. The ERM independently performs credit risk assessment, evaluation and review
for its retail, commercial and corporate financial products to ensure consistency in the Parent
Bank’s risk assessment process. It also ensures that the Parent Bank’s credit policies and
procedures are adequate and are constantly updated to meet the changing demands or risk
profiles of the business units, the COVID-19-related overlays as well as their impact on credit
impairment and credit portfolio’s credit risk profiles. The ERM also reported to the Board’s Risk
Management Committee.
The ERM’s portfolio management function involves the review of the Parent Bank’s loan
portfolio, including the portfolio risks associated with particular industry sectors, regions, loan
size and maturity, and the development of a strategy for the Parent Bank to achieve its desired
portfolio mix and risk profile. The ERM reviews the Parent Bank’s loan portfolio quality in line
with the Parent Bank’s policy of avoiding significant concentrations of exposure to specific
industries or groups of borrowers. Concentrations arise when a number of counterparties are
engaged in similar business activities, or activities in the same geographic region, or have similar
economic features. Concentrations indicate the relative sensitivity of the Parent Bank’s
performance to developments affecting a particular industry or geographical location.
The Group and the Parent Bank consider concentration risk to be present when the total exposure
to a particular industry exceeds 30.0% of the total exposure, which is similar to the BSP
requirement. As of December 31, 2022 and 2021, the Group and the Parent Bank did not exceed
the limit in any of its industry concentration.
*SGVFS169521*
In order to avoid excessive concentrations of risk, the Parent Bank’s policies and procedures
include guidelines for maintaining a diversified portfolio mix (e.g., concentration limits).
Identified concentrations of credit risks are controlled and managed accordingly. The ERM also
monitors compliance to the BSP’s limit on exposures.
The table below shows the breakdown of the Group’s and the Parent Bank’s exposure on
receivable from customers and investments and placements as of December 31, 2022 and 2021:
2022
Group Parent Bank
Corporate loans P
=130,499,972 P
=130,499,972
Consumer products* 99,202,486 99,202,486
Commercial loans 75,232,498 75,232,498
Home loans 65,659,469 65,659,469
CSB salary loans 64,029,282 −
Other receivables from customers** 45,871,855 20,002,091
Total receivables from customers 480,495,562 390,596,516
Investments and placements 492,852,118 442,454,859
P
=973,347,680 P
=833,051,375
*Comprised of Small and Medium Enterprise (SME) Financial Products and Consumer Loans
**Comprised of HR loans, quick loans and Home Credit receivables
2021
Group Parent Bank
Corporate loans =118,674,586
P =118,674,586
P
Consumer products* 18,119,653 18,119,653
Commercial loans 69,942,747 69,942,747
Home loans 58,214,670 58,214,670
CSB salary loans 45,625,092 −
Other receivables from customers** 29,311,418 14,022,203
Total receivables from customers 339,888,166 278,973,859
Investments and placements 410,298,448 366,933,320
=750,186,614
P =645,907,179
P
Investments and placements include financial assets at amortized cost, debt securities classified
as financial assets at FVOCI, due from other banks, due from BSP and interbank loans receivable
and the related accrued interest receivable amounting to =
P3.83 billion and =
P2.91 billion as of
December 31, 2022 and 2021, respectively.
The following summarizes the Group’s credit risk management practices and the relevant
quantitative and qualitative financial information regarding the credit exposure according to
portfolios:
Credit risk management practices and credit quality disclosures

Corporate Loans
Corporate lending activities are undertaken by the Parent Bank’s Corporate Banking Center. The
customer accounts under this group belong to the top tier corporations, conglomerates and large
multinational companies.
*SGVFS169521*
The Parent Bank undertakes a comprehensive procedure for the credit evaluation and risk
assessment of large corporate borrowers based on its obligor risk rating master scale.
The Parent Bank currently utilizes the same single rating system for both Corporate and
Commercial accounts. In addition, the result on the latter is further refined through a second
model to take more careful account of the nuances between the commercial bank portfolio with
that of the corporate loan book.
The rating system assesses default risk based on financial profile, management capacity, industry
performance, and other factors deemed relevant. Significant changes in the credit risk
considering movements in credit rating, among other account-level profile and performance
factors, define whether the accounts are classified in either Stage 1, Stage 2, or Stage 3 per
PFRS 9 loan impairment standards. In 2022, the Parent Bank updated the stage assessment to
enhance the considerations related to movements in the borrower’s credit rating when
determining significant increase in credit risk, which include rating threshold triggers.
Based on foregoing factors, each borrower is assigned a Borrower Risk Rating (BRR), from
AAA to D. In addition to the BRR, the Parent Bank assigns a loan exposure rating (LER),
a 100-point system which consists of a Facility Tenor Rating (FTR) and a Security Risk Rating
(SRR). The FTR measures the maturity risk based on the length of loan exposure, while the SRR
measures the quality of the collateral and risk of its potential deterioration over the term of the
loan. The FTR and the SRR, each a 100-point scoring system, are given equal weight in
determining the LER.
Once the BRR and the LER have been determined, the credit limit to a borrower is determined
under the Risk Asset Acceptance Criteria (RAAC) which is a range of acceptable combinations
of the BRR and the LER. Under the RAAC system, a borrower with a high BRR will have a
broader range of acceptable LERs.
The credit rating for each borrower is reviewed annually or earlier when there are extraordinary
or adverse developments affecting the borrower, the industry and/or the Philippine economy such
as the COVID-19 pandemic. Any major change in the credit scoring system, the RAAC range
and/or the risk-adjusted pricing system is presented to and approved by the RMC.
The description of each credit quality grouping for the credit scores is explained further as
follows:
High Quality Grade - These accounts are of the highest quality and are likely to meet financial
obligations.
Standard Grade - These accounts may be vulnerable to adverse business, financial and economic
conditions but are expected to meet financial obligations.
Substandard Grade - These accounts are vulnerable to non-payment but for which default has not
yet occurred.
Non-Performing - These refer to accounts which are in default or those that demonstrate
objective evidence of impairment.
*SGVFS169521*
Below is the breakdown of the Group and Parent Bank’s corporate loans exposure (outstanding
balance and accrued interest receivable) by masterscale rating as of December 31, 2022 and
2021:
December 31, 2022

Amounts
Credit Score Masterscale Stage 1 Stage 2 Stage 3 Total
High Quality Grade

AAA to A- 1 =−
P P−
= P−
= =−
P
BBB+ 2 4,702,187 − − 4,702,187
BBB 3 − − − −
BBB- to BB+ 4 42,470,009 30,021 − 42,500,030
Standard Grade
BB to BB- 5 26,794,965 40,651 − 26,835,616
B+ 6 4,983,374 − − 4,983,374
B to B- 7 30,739,257 10,649,085 − 41,388,342
CCC+ to CCC 8 9,776,060 76,577 − 9,852,637
Substandard Grade
Lower than CCC 9 77,012 7,816 − 84,828
Non-Performing
Default 10 − − 152,958 152,958
=119,542,864
P =10,804,150
P P152,958
= =130,499,972
P
December 31, 2021

Amounts
High Quality Grade

AAA to A- 1 =−
P P−
= P−
= =−
P
BBB+ 2 5,273,588 − − 5,273,588
BBB 3 1,500,229 − − 1,500,229
BBB- to BB+ 4 37,128,851 − − 37,128,851
Standard Grade
BB to BB- 5 22,818,612 25,040 − 22,843,652
B+ 6 9,550,333 8,824,869 − 18,375,202
B to B- 7 13,085,912 12,160,653 − 25,246,565
CCC+ to CCC 8 5,326,535 − − 5,326,535
Substandard Grade
Lower than CCC 9 1,516,904 12,866 − 1,529,770
Non-Performing
Default 10 − − 1,450,194 1,450,194
=96,200,964
P =21,023,428
P P1,450,194
= =118,674,586
P
Commercial Loans
The Group and Parent Bank’s commercial banking activities are undertaken by its Commercial
Banking Center (ComBank). These consist of banking products and services rendered to
customers which are entities that are predominantly middle market companies. These products
and services are similar to those provided to large corporate customers, with the predominance of
trade finance-related products and services.
*SGVFS169521*
The non-financial ComBank accounts use an adjusted obligor rating scale derived from the one
applied for corporate loans, and follows the same RAAC framework, while ComBank accounts
classified as banks and non-bank financial institutions are still rated using the 2018 rating scale.
Below is the breakdown of the Group and Parent Bank’s commercial loans exposure (outstanding
balance and accrued interest receivable) by masterscale rating as of December 31, 2022 and 2021
for financial and non-financial institutions:
Financial Institutions
December 31, 2022
Amounts
High Quality Grade
AAA to A- 1 P−
= P−
= P−
= P−
=
BBB+ 2 − − − −
BBB- 3 − − − −
BBB- to BB+ 4 250,218 − − 250,218
Standard Grade
BB to BB- 5 1,974,404 − − 1,974,404
B+ 6 1,151,668 − − 1,151,668
B to B- 7 8,393,725 − − 8,393,725
CCC+ to CCC 8 7,809,630 − − 7,809,630
Substandard Grade
Lower than CCC 9 135,453 − − 135,453
Non-Performing
Default 10 − − 28,430 28,430
=19,715,098
P P−
= P28,430
= =19,743,528
P
December 31, 2021

Amounts
High Quality Grade
AAA to A- 1 P−
= P−
= P−
= P−
=
BBB+ 2 − − − −
BBB- 3 − − − −
BBB- to BB+ 4 2,123,845 − − 2,123,845
Standard Grade
BB to BB- 5 1,124,053 − − 1,124,053
B+ 6 1,274,683 − − 1,274,683
B to B- 7 11,449,999 − − 11,449,999
CCC+ to CCC 8 4,675,900 − − 4,675,900
Substandard Grade
Lower than CCC 9 133,301 − − 133,301
Non-Performing
Default 10 − − − −
=20,781,781
P P−
= P−
= =20,781,781
P
*SGVFS169521*
Non-financial Institutions
December 31, 2022
Amounts
Masterscale Stage 1 Stage 2 Stage 3 Total
1 P−
= P−
= P−
= P−
=
2 − − − −
3 1,377,275 − − 1,377,275
4 3,056,524 − − 3,056,524
5 10,820,105 504,744 − 11,324,849

6 14,048,050 4,112,895 − 18,160,945
7 13,655,655 51,023 − 13,706,678
8 1,020,102 1,050,094 − 2,070,196

9 604,258 1,166,003 − 1,770,261
10 30,909 85,377 3,905,956 4,022,242

=44,612,878
P =6,970,136
P P3,905,956
= =55,488,970
P
December 31, 2021

Amounts
1 =−
P P−
= P−
= =−
P
2 10,006 − − 10,006
3 1,414,153 − − 1,414,153
4 2,863,325 − − 2,863,325
5 8,886,779 389,130 − 9,275,909

6 8,909,247 557,834 − 9,467,081
7 17,654,256 1,024,579 − 18,678,835
8 2,057,062 232,643 − 2,289,705

9 323,119 1,465,013 − 1,788,132
10 − − 3,373,820 3,373,820
=42,117,947
P =3,669,199
P P3,373,820
= =49,160,966
P
Small and Medium Enterprise (SME) Financial Products

SME portfolio is composed of Business Line Loans and a small portion from emerging products.
Each of these products has established credit risk guidelines and systems for managing credit risk
across all businesses. Credit models are constantly revised and updated as necessary while data
analytics have been enhanced to improve portfolio quality and product offers.
SME products use rating scale 1 to 5.
Consumer Loans
The Consumer loan portfolio of the Parent Bank is composed of three main product lines,
namely: Home Loans, Auto Loans, and Credit Cards. Starting August 2022, the newly acquired
Citibank Consumer loans of Credit Cards and Personal Loans were added in the product offering
of the Parent Bank. Since the acquisition of the Citibank Consumer loan portfolios, there has
been ongoing system builds, alignment of credit policies, processes and strategies to prepare for a
seamless integration of the customers and products.
*SGVFS169521*
For the subsidiary, CSB, an accredited lending institution of the Department of Education
(DepEd), provides salary loans to teachers under an agreement with DepEd for payroll
deductions. CSB also provides motorcycle loans as a result of its acquisition and subsequent
merger with PR Savings Bank.
Exposure to credit risk is managed through diligent assessment upon onboarding and regular
portfolio and segment analysis of the ability of borrowers to meet interest and principal
repayment obligations and by changing these lending limits when appropriate.
The Consumer products’ respective masterscale is defined by the credit scoring models, which
consider demographic variables and behavioral performance, to segment the portfolio according
to risk masterscale per product. The stages are defined by the approved SICR for Consumer
which takes into account the following: NPL status, months on books, and credit score rating for
Application Score (point of application) and Behavior Score (monthly credit performance). In
2020, the Parent Bank implemented additional credit risk assessment for clients affected by and
are responding to COVID-19-related challenges, as consideration in determining the SICR of the
account. Subsequently in 2022, PD models for Credit Cards, Home Loan, Auto Loan and
SME products have been updated, with incorporation of data points that consider the effect of the
pandemic. With the update of scores of borrowers reflecting the effects of pandemic, the
observable improvement of product portfolio performance as economic activities restarted that
were input to the model in 2022, the Parent Bank removed the additional credit risk assessment
overlay implemented in 2020 in its SICR determination.
Both Home Loans (except Contract to Sell - CTS) and Credit Cards use rating scale 1 to 6. CTS
utilizes the Corporate ratings ranging from 1 to 9. Meanwhile, Auto Loans and SME products
use rating scale 1 to 5.
For the acquired Credit card and Personal loan portfolio from Citibank, pending the completion
of the integration and alignment of models with the Parent Bank, the Group measures the
expected credit loss under the general approach based on historical experience of charge offs and
recoveries, and adjusted for the effect of forward looking information. The Parent Bank monitors
the credit quality of the portfolio based on days past due information, as follows:
Delinquency Days past due

buckets
0 Current
1 0 – 30 days
2 30 – 59 days
3 60 – 89 days
4 (default) 90 – 119 days
5 120 – 149 days
6 150 – 179 days
Below is the breakdown of the Group’s and the Parent Bank’s major consumer portfolio loans
exposure (outstanding balance and accrued interest receivable) by masterscale rating as of
December 31, 2022 and 2021:
*SGVFS169521*
Home Loans
December 31, 2022
Amounts
1 P7,640,551
= =–
P =–
P P7,640,551
=
2 10,467,797 – – 10,467,797
3 10,920,928 39,841 – 10,960,769
4 8,489,749 313,319 – 8,803,068
5 7,357,469 544,792 – 7,902,261
6 1,878,642 682,064 – 2,560,706
7 11,511,153 – – 11,511,153
Default – – 5,813,164 5,813,164
=58,266,289
P =1,580,016
P =5,813,164
P =65,659,469
P
December 31, 2021

Amounts
1 =–
P =–
P =–
P =–
P
2 6,332,609 – – 6,332,609
3 9,820,451 – – 9,820,451
4 6,032,565 – – 6,032,565
5 9,361,213 – – 9,361,213
6 9,798,388 26,515 – 9,824,903
7 8,680,489 1,318,139 – 9,998,628
Default – – 6,844,301 6,844,301
=50,025,715
P =1,344,654
P =6,844,301
P =58,214,670
P
Consumer Products (Acquired Credit card and Personal loan portfolio from Citibank)
December 31, 2022
Amounts
Delinquency Bucket Stage 1 Stage 2 Stage 3 Total
0 =73,051,126
P =192,070
P =27,577
P =73,270,773
P
1 1,569,678 60,467 2,266 1,632,411
2 – 413,390 3,383 416,773
3 – 300,022 9,945 309,967
4 – – 185,255 185,255
5 – – 154,904 154,904
6 – – 120,610 120,610
=74,620,804
P =965,949
P =503,940
P =76,090,693
P
Consumer Products (SME Financial Products, Credit Cards and Auto Loans)
December 31, 2022

Amounts
1 =2,804,812
P =182,287
P =–
P =2,987,099
P
2 2,451,709 – – 2,451,709
3 4,238,197 483,315 – 4,721,512
4 3,534,179 2,596 – 3,536,775
5 3,762,453 41,294 – 3,803,747
6 2,614,899 147,808 – 2,762,707
7 – – – –
Default – – 2,848,244 2,848,244
=19,406,249
P =857,300
P =2,848,244
P =23,111,793
P
*SGVFS169521*
December 31, 2021

Amounts
1 =–
P =–
P =–
P =–
P
2 506,863 1,758 – 508,621
3 848,950 1,263 – 850,213
4 2,422,892 4,235 5,488 2,432,615
5 3,578,278 19,584 335,136 3,932,998
6 5,188,727 14,986 80 5,203,793
7 2,636,174 112,085 – 2,748,259
Default – – 2,443,154 2,443,154
=15,181,884
P =153,911
P =2,783,858
P =18,119,653
P
CSB Salary Loans

For CSB salary loans, which relates to the DepEd loans of CSB, each borrower is assigned a
credit score with E as minimal risk, D as low risk, C as moderate risk, B as average risk and A as
high risk.
The description of each credit quality grouping for the credit scores is explained further as
follows:
High grade (minimal to low risk) - These are receivables which have a high probability of
collection. The counterparty has the apparent ability to satisfy its obligation and the security on
the receivables is readily enforceable.
Standard grade (moderate to average risk) - These are receivables where collections are probable
due to the reputation and the financial ability of the counterparty to pay but with experience of
default.
Substandard (high risk) - Accounts classified as “Substandard” are individual credits or portions
thereof which appear to involve a substantial and unreasonable degree of risk to CSB because of
unfavorable record or unsatisfactory characteristics. There exists in such accounts the possibility
of future loss to CSB unless given closer supervision. Those classified as “Substandard” must
have a well-defined weakness or weaknesses that jeopardize their liquidation. Such well-defined
weaknesses may include adverse trends or development of financial, managerial, economic or
political nature, or a significant weakness in collateral.
Below is the breakdown of CSB’s salary loans exposure (outstanding balance and accrued
interest receivable) by credit score as of December 31, 2022 and 2021:
December 31, 2022

Amounts
Credit Score Stage 1 Stage 2 Stage 3 Total
D to E P11,204,266
= =−
P =−
P P11,204,266
=
B to C 46,106,634 1,096,789 − 47,203,423
A 247,694 188,085 − 435,779
Default − − 5,185,814 5,185,814
=57,558,594
P =1,284,874
P =5,185,814
P =64,029,282
P
*SGVFS169521*
December 31, 2021

Amounts
Credit Score Stage 1 Stage 2 Stage 3 Total
D to E P11,280,004
= =−
P =1,532
P P11,281,536
=
B to C 29,110,475 743,633 16,337 29,870,445
A 411,034 723,386 19,766 1,154,186
Default − − 3,318,925 3,318,925
=40,801,513
P =1,467,019
P =3,356,560
P =45,625,092
P
Other receivables from customers

Other receivables from customers of the Group and the Parent Bank include small portfolios such
as, with respect to the Parent Bank, (i) personal loans, (ii) HR loans, (iii) bills purchase and
(iv) customer liabilities under acceptance, (v) home credit receivables, (vi) teacher’s loans
acquired from CSB and, with respect to the subsidiaries, (i) personal loans, and (ii) motorcycle
loans. Each of these products has established credit risk guidelines and systems for managing
credit risk across all businesses.
Exposure to credit risk is managed through regular analysis of the ability of borrowers and
potential borrowers to meet interest and capital repayment obligations and by changing these
lending limits when appropriate.
Each product was risk rated using techniques appropriate to the Group’s and Parent Bank’s credit
experience. Such methods consider the payment history that are reflected in aging, delinquency,
and/or change in rating. These provide the bases for the ECL stage determination.
The description of each groupings according to stage is explained further as follows:
Stage 1 - those that are considered current and up to 30 days past due, and based on change in
rating, delinquencies and payment history, does not demonstrate significant increase in credit
risk.
Stage 2 - those that are considered more than 30 days past due but does not demonstrate objective
evidence of impairment as of reporting date, and, based on change in rating, delinquencies and
payment history, demonstrates significant increase in credit risk.
Stage 3 - Those that are considered default of more than 90 days past due or demonstrates
objective evidence of impairment as of reporting date.
Below is a summary as of December 31, 2022 and 2021 of the Group’s and Parent Bank’s other
receivables from customers.
December 31, 2022

Amounts
Stage 1 Stage 2 Stage 3 Total
Group P37,691,857
= =2,674,618
P =5,505,380
P P45,871,855
=
Parent Bank 18,883,459 261,453 857,179 20,002,091
December 31, 2021

Amounts
Group P24,383,986
= =695,966
P =4,231,466
P P29,311,418
=
Parent Bank 13,074,318 137,222 810,663 14,022,203
*SGVFS169521*
Investments and Placements

Investments and placements include financial assets at amortized cost, debt financial assets
through other comprehensive income, due from BSP, interbank loans receivable, and due from
other banks. Each has established credit risk guidelines and systems for managing credit risk
across all businesses.
Below is the breakdown of the Group’s and the Parent Bank’s investments and placements
(outstanding balance and accrued interest receivable) by masterscale rating as of
Sovereign - Group
December 31, 2022

Amounts
1 =16,316,140
P =−
P =−
P =16,316,140
P
2 − − − −
3 − − − −
4 279,717 − − 279,717
5 − − − −
6 1,513,995 − − 1,513,995
7 − − − −
8 − − − −
9 266,666,218 − − 266,666,218
10 − − − −
11 1,315,359 789,534 − 2,104,893
12 2,014,319 − − 2,014,319
13 − − − −
14 − 2,247,582 − 2,247,582
15 − − − −
16 − − − −
Default − − − −
=288,105,748
P =3,037,116
P =−
P =291,142,864
P
December 31, 2021

Amounts
1 =6,027,263
P =−
P =−
P =6,027,263
P
2 − − − −
3 − − − −
4 255,911 − − 255,911
5 35,929,557 − − 35,929,557
6 1,585,739 − − 1,585,739
7 − − − −
8 2,409,655 − − 2,409,655
9 179,529,674 − − 179,529,674
10 − − − −
11 3,747,351 − − 3,747,351
12 1,855,068 723,018 − 2,578,086
13 − − − −
14 − 2,055,879 − 2,055,879
15 − − − −
16 − − − −
=231,340,218
P =2,778,897
P =−
P =234,119,115
P
*SGVFS169521*
Corporate – Group
December 31, 2022

Amounts
1 =37,191,682
P =−
P =−
P =37,191,682
P
2 4,473,290 − − 4,473,290
3 632,707 − − 632,707
4 124,625,859 − − 124,625,859
5 5,469,752 − − 5,469,752
6 11,206,441 − − 11,206,441
7 1,943,576 − − 1,943,576
8 2,776,528 − − 2,776,528
9 9,624,269 − − 9,624,269
10 1,693,417 − − 1,693,417
11 2,071,733 − − 2,071,733
12 − − − −
13 − − − −
=201,709,254
P =−
P =−
P =201,709,254
P
December 31, 2021

Amounts
1 P1,738,518
= =−
P =−
P P1,738,518
=
2 54,117,106 − − 54,117,106
3 15,510,463 − − 15,510,463
4 997,706 − − 997,706
5 76,243,614 − − 76,243,614
6 6,904,179 − − 6,904,179
7 5,365,779 − − 5,365,779
8 3,456,594 − − 3,456,594
9 9,072,351 − − 9,072,351
10 − − − −
11 2,732,528 − − 2,732,528
12 40,495 − − 40,495
13 − − − −
=176,179,333
P =−
P =−
P =176,179,333
P
Sovereign – Parent Bank
December 31, 2022

Amounts
1 =16,316,140
P =−
P =−
P =16,316,140
P
2 − − − −
3 − − − −
4 279,717 − − 279,717
5 − − − −
6 1,513,995 − − 1,513,995
7 − − − −
8 − − − −
9 257,339,212 − − 257,339,212
10 − − − −
*SGVFS169521*
December 31, 2022

Amounts
11 P1,315,359
= =789,534
P =−
P P2,104,893
=
12 2,014,319 − − 2,014,319
13 − − − −
14 − 2,247,582 − 2,247,582
15 − − − −
16 − − − −
=278,778,742
P =3,037,116
P =−
P =281,815,858
P
December 31, 2021

Amounts
1 =6,027,263
P =−
P =−
P =6,027,263
P
2 − − − −
3 − − − −
4 255,911 − − 255,911
5 − − − −
6 1,585,739 − − 1,585,739
7 − − − −
8 2,409,655 − − 2,409,655
9 175,346,683 − − 175,346,683
10 − − − −
11 3,747,351 − − 3,747,351
12 1,855,068 723,018 − 2,578,086
13 − − − −
14 − 2,055,879 − 2,055,879
15 − − − −
16 − − − −
=191,227,670
P =2,778,897
P =−
P =194,006,567
P
Corporate – Parent Bank
December 31, 2022

Amounts
1 =37,191,682
P =−
P =−
P =37,191,682
P
2 4,473,290 − − 4,473,290
3 632,707 − − 632,707
4 83,703,956 − − 83,703,956
5 5,469,751 − − 5,469,751
6 11,206,441 − − 11,206,441
7 1,884,024 − − 1,884,024
8 2,736,528 − − 2,736,528
9 9,624,269 − − 9,624,269
10 1,693,417 − − 1,693,417
11 2,022,936 − − 2,022,936
12 − − − −
13 − − − −
=160,639,001
P =−
P =−
P =160,639,001
P
*SGVFS169521*
December 31, 2021

Amounts
1 P1,738,518
= =−
P =−
P P1,738,518
=
2 54,117,106 − − 54,117,106
3 15,510,463 − − 15,510,463
4 997,706 − − 997,706
5 73,176,780 − − 73,176,780
6 6,904,179 − − 6,904,179
7 5,305,511 − − 5,305,511
8 3,400,537 − − 3,400,537
9 9,072,351 − − 9,072,351
10 − − − −
11 2,703,602 − − 2,703,602
12 − − − −
13 − − − −
=172,926,753
P =−
P =−
P =172,926,753
P
Analysis of movements of gross carrying amounts

Movements in 2022 and 2021 for total receivables from customers follow. The balances
presented include the related accrued interest receivables:
Group
2022
Balances at beginning of year P
= 282,953,118 P
= 34,964,422 P
= 21,970,626 P
= 339,888,166
Newly originated assets that remained in
Stage 1 as at December 31, 2022 204,366,140 − − 204,366,140
Newly originated assets that moved to Stage 2
and Stage 3 as at December 31, 2022 − 10,994,810 4,132,300 15,127,110
Movements in receivable balance (excluding
write-offs) (127,828,623) (12,871,190) (640,456) (141,340,269)
Transfers to Stage 1 16,082,298 (11,938,827) (4,143,471) −
Transfers to Stage 2 (4,345,040) 4,870,309 (525,269) −
Transfers to Stage 3 (4,737,502) (1,260,552) 5,998,054 −
Amounts written-off (16,778) (4,394) (3,090,214) (3,111,386)
Effects of business combination (see Note 1) 64,941,020 382,465 242,316 65,565,801
Balance at end of year P
= 431,414,633 P
= 25,137,043 P
= 23,943,886 P
= 480,495,562
2021
Balances at beginning of year =290,689,261
P =15,147,350
P =20,305,489
P =326,142,100
P
Newly originated assets that moved to Stage 2
and Stage 3 as at December 31, 2021 − 1,809,525 3,181,392 4,990,917
Movements in receivable balance (excluding
write-offs) (133,921,880) 3,174,859 937,243 (129,809,778)
Transfers to Stage 2 (16,053,691) 17,125,223 (1,071,532) −
Transfers to Stage 3 (3,894,455) (796,564) 4,691,019 −
Amounts written-off − − (1,659,357) (1,659,357)
Balance at end of year =282,953,118
P =34,964,422
P =21,970,626
P =339,888,166
P
*SGVFS169521*
Parent Bank
2022
=230,841,937 P
=32,938,659 P
=15,193,263 P
=278,973,859
Newly originated assets that moved to
Stage 2 and Stage 3 as at
December 31, 2022 − 8,466,219 1,814,489 10,280,708
Movements in receivable balance
(excluding write-offs) (86,987,037) (11,371,851) (254,062) (98,612,950)
Effects of business combination (see Note 1) 64,941,020 382,465 242,316 65,565,801
P =22,312,321
P P
=13,617,365 P
=390,596,516
2021
P =13,525,006
P =15,990,549
P =265,447,285
P
December 31, 2021 − 248,257 1,925,154 2,173,411
(excluding write-offs) (92,124,823) 4,603,341 (2,372,790) (89,894,272)
P =32,938,659
P =15,193,263
P =278,973,859
P
The breakdown of movements in 2022 and 2021 for total receivables from customers follow:
Corporate Loans - Group and Parent Bank
2022
P =27,629,390
P =1,418,769
P =118,674,586
P
Newly originated assets that
remained in Stage 1 as at
December 31, 2022 35,366,827 − − 35,366,827
Transfers to Stage 1 10,532,896 (10,532,896)
Transfers to Stage 2 (2,524,367) 2,524,367 − −
Transfers to Stage 3 − − − −
Amounts written off − − (1,025,902) (1,025,902)
P =10,804,150
P =152,958 P
P =130,499,972
*SGVFS169521*
2021
P =9,233,847
P =1,167,482
P =116,736,437
P
December 31, 2021 23,115,419 − − 23,115,419
(25,511,459) 4,051,477 282,712 (21,177,270)
(excluding write-offs)
Amounts written off − − − −
P =27,629,390
P =1,418,769 P
P =118,674,586
Commercial Loans - Group and Parent Bank
2022
P =3,669,199
P =3,373,820
P =69,942,747
P
December 31, 2022 57,610,451 − − 57,610,451
December 31, 2022 6,434,907 307,023 6,741,930
Transfers to Stage 1 204,121 (36,891) (167,230) −
Transfers to Stage 2 (11,662) 101,750 (90,088) −
Transfers to Stage 3 (483,135) (235,812) 718,947 −
Amounts written-off − − − −
Balances at end of year =64,327,976
P =6,970,136
P =3,934,386
P =75,232,498
P
2021
P =2,207,803
P =3,307,055
P =64,469,337
P
December 31, 2021 54,340,243 − − 54,340,243
861,783 (332,276) (48,821,836)
(excluding write-offs) (49,351,343)
Transfers to Stage 2 (723,888) 723,888 − −
Amounts written-off − − (44,997) (44,997)
P =3,669,199
P =3,373,820
P =69,942,747
P
*SGVFS169521*
Home Loans - Group and Parent Bank
2022
P =1,344,654
P =6,844,301
P =58,214,670
P
December 31, 2022 21,149,124 − − 21,149,124
December 31, 2022 − 201,611 274,863 476,474
(excluding write-offs) (12,751,142) (125,291) (1,301,467) (14,177,900)
Transfers to Stage 1 2,305,218 (714,332) (1,590,886) −
Transfers to Stage 2 (851,925) 1,193,695 (341,770) −
Amounts written off − − (2,899) (2,899)
P =1,580,016
P =5,813,164
P =65,659,469
P
2021
P =1,761,970
P =7,949,927
P =56,749,179
P
December 31, 2021 16,285,786 − − 16,285,786
December 31, 2021 − 159,704 307,106 466,810
(excluding write-offs) (13,655,902) (210,604) (1,365,347) (15,231,853)
Transfers to Stage 2 (795,608) 1,150,360 (354,752) −
Amounts written off − − (55,252) (55,252)
P =1,344,654
P =6,844,301
P =58,214,670
P
Consumer Products - Group and Parent Bank
2022
Balance at beginning of year =15,215,749
P =158,194
P =2,745,710
P =18,119,653
P
December 31, 2022 8,759,275 − − 8,759,275
December 31, 2022 − 734,103 1,186,838 1,920,941
(excluding write-offs) 3,853,771 606,470 1,691,030 6,151,271
Transfers to Stage 1 2,862,306 (523.403) (2,338,903) −
Transfers to Stage 3 (900,183) (301,354) 1,201,537 −
Effects of business combination
(see Note 1) 64,941,020 382,465 242,316 65,565,801
Balance at end of year P94,027,053
= =1,823,249
P =3,352,184
P P99,202,486
=
*SGVFS169521*
2021
P =201,363
P =2,902,499
P =18,917,409
P
December 31, 2021 2,639,472 − − 2,639,472
December 31, 2021 − 40,703 1,470,415 1,511,118
(excluding write-offs) (2,692,576) (55,380) (779,121) (3,527,077)
P =158,194
P =2,745,710
P =18,119,653
P
Consumer Products – Citi
2022
Balance as of acquisition date =64,941,020
P =382,465
P =242,316
P =65,565,801
P
December 31, 2022 3,182,203 − − 3,182,203
December 31, 2022 − 17,595 276 17,871
(excluding write-offs) 6,819,213 631,206 191,843 7,642,262
P =965,949
P =503,940
P =76,090,693
P
CSB Salary Loans - Group

2022
P = 1,467,019
P =3,356,560
P =45,625,092
P
December 31, 2022 50,842,291 − − 50,842,291
December 31, 2022 − 1,181,381 1,326,854 2,508,235
Amounts written-off (16,441) (4,258) (18,996) (39,695)
P =1,284,874
P =5,185,814
P =64,029,282
P
*SGVFS169521*
2021
P =574,243
P =2,051,036
P =47,918,513
P
December 31, 2021 30,147,310 − − 30,147,310
December 31, 2021 − 1,255,137 659,369 1,914,506
(excluding write-offs) (35,452,586) (369,310) 1,582,285 (34,239,611)
P =1,467,019
P =3,356,560
P =45,625,092
P
Other Receivables from Customers

Other receivables from customers include HR loans, Quick loans and Home Credit and CSB
personal loan receivables.
Group
2022
P =695,966
P =4,231,466
P =29,311,418
P
Newly originated assets that remained
in Stage 1 as at December 31,
2022 30,638,172 − − 30,638,172
December 31, 2022 − 2,442,808 1,036,722 3,479,530
Amounts written-off (337) (136) (727,962) (728,435)
P =2,674,618
P =5,505,380
P =45,871,855
P
2021
P =1,168,124
P =2,927,490
P =21,351,225
P
December 31, 2021 13,696,054 − − 13,696,054
December 31, 2021 − 353,981 744,502 1,098,483
(7,258,012) (1,103,107) 1,548,988 (6,812,131)
(excluding write-offs)
Transfers to Stage 1 1,042,701 (237,164) (805,537) −
P =695,966
P =4,231,466
P =29,311,418
P
*SGVFS169521*
Parent Bank
2022
P =137,222
P =810,663
P =14,022,203
P
December 31, 2022 14,238,019 − − 14,238,019
December 31, 2022 − 1,095,598 45,765 1,141,363
P =1,134,770
P =364,673
P =20,002,091
P
2021
P =120,023
P =663,586
P =8,574,923
P
December 31, 2021 6,400,214 − − 6,400,214
December 31, 2021 − 47,850 147,633 195,483
(excluding write-offs) (913,541) (43,935) (178,760) (1,136,236)
P =137,222
P =810,663
P =14,022,203
P

Movements in 2022 and 2021 for investments and placements follow. The balances presented
include accrued interest receivables:
Group
2022
P =2,778,897
P =−
P =425,839,744
P
December 31, 2022 196,419,137 − − 196,419,137
Stage 2 as at December 31, 2022 − − − −
Movements in the balance (excluding
write-offs) (129,664,982) 258,219 − (129,406,763)
= =3,037,116
P P−
= P492,852,118
=
*SGVFS169521*
2021
P =3,468,879
P =−
P =361,513,930
P
December 31, 2021 199,191,117 − − 199,191,117
Stage 2 as at December 31, 2021 − 2,778,897 − 2,778,897
write-offs) (134,175,321) (3,468,879) − (137,644,200)
= P2,778,897
= P−
= P425,839,744
=
Parent
2022
P =2,778,897
P =−
P =382,474,616
P
December 31, 2022 150,492,730 − − 150,492,730
write-offs) (90,770,706) (258,219) − (90,512,487)
P =3,037,116
P P−
= =442,454,859
P
2021
P =3,468,879
P =−
P =334,852,459
P
December 31, 2021 183,084,894 − − 183,084,894
write-offs) (134,772,755) (689,982) − (5,462,737)
= =2,778,897
P P−
= =382,474,616
P
Modification
In certain circumstances, the Group modifies the original terms and conditions of a credit exposure
to form a new loan agreement or payment schedule. The modifications can be given depending on
the borrower’s or counterparty’s current or expected financial difficulty. The modifications may
include, but are not limited to, change in interest rate and terms, principal amount, maturity date,
date and amount of periodic payments and accrual of interest and charges.
For the years ended December 31, 2022 and 2021, the net impact of the subsequent accretion of
the 2020 loan modifications amounted to income of =P129.15 million and =P101.37 million for the
Group, respectively, and income of =
P106.00 million and =
P51.84 million for the Parent Bank,
respectively.
*SGVFS169521*
Collateral Held as Security and Other Credit Enhancements

The Group holds collateral against loans and other receivables from customers in order to
mitigate risk. The collateral may be in the form of mortgages over real estate property, chattels,
inventory, cash, securities and/or guarantees. The Bank regularly monitors and updates the fair
value of the collateral depending on the type of credit exposure. Estimates of the fair value of
collateral are considered in the review and assessment of the adequacy of allowance for credit
losses. In general, the Bank does not require collateral for loans and advances to other banks,
except when securities are held as part of reverse repurchase agreements.
An estimate of the fair value of collateral and other security enhancements held by the Group and
the Parent Bank against loans and other receivables as of December 31, 2022 and 2021 is shown
below:
Group
Exposure after
Exposure before financial effect of
collateral Property Deposits Others collateral
As of December 31, 2022 =496,377,906
P P32,771,126
= P764,920
= P86,173,770
= =376,668,090
P
As of December 31, 2021 =351,703,833
P =29,047,280
P =652,973
P =31,995,877
P =290,007,703
P
Parent Bank
Exposure after
Exposure before financial effect of
collateral Property Deposits Others collateral
As of December 31, 2022 =403,594,811
P P30,824,454
= P722,316
= P85,015,443
= =287,032,598
P
As of December 31, 2021 =286,235,453
P =27,477,392
P =617,608
P =30,759,192
P =227,381,261
P
The Group’s manner of disposing the collateral for impaired loans and receivables is normally
through sale of the assets after foreclosure proceedings have taken place.
Liquidity Risk
Liquidity risk is the risk that there are insufficient funds available to adequately meet the credit
demands of the Group’s customers and repay deposits on maturity. The Asset and Liability
Committee (ALCO) and the Treasurer of the Group ensure that sufficient liquid assets are
available to meet short-term funding and regulatory requirements. Liquidity is monitored by the
Group on a daily basis and under stressed situations. A contingency plan is formulated to set out
the amount and the sources of funds (such as unused credit facilities) that are available to the
Group and the circumstances under which the Group may use such funds.
Liquidity ratios are used to monitor and manage the Bank’s liquidity. The MRC approves the
ratios to be used for monitoring the performance of the Bank and for mapping out areas where
improvements are needed. These ratios include Liquid Assets to Deposits Ratio, Liquidity ratio,
Leverage Ratio and Intermediation Ratio.
The Group also manages its liquidity risks through the use of a Maximum Cumulative Outflow
(MCO) limit which regulates the outflow of cash on a cumulative basis and on a tenor basis. To
maintain sufficient liquidity in foreign currencies, the Group has also set an MCO limit for
certain designated foreign currencies. The MCO limits are endorsed by the MRC and approved
by the BOD. The Bank has separate limits for the short term (generally less than 30 days) and
the medium term tenor (from 30 days to one year).
*SGVFS169521*
In addition, the Bank established a sub-portfolio to manage excess USD Liquidity brought by the
acquisition of Citibank’s retail portfolio. The liquidity sub-portfolio can only be composed of
securities within the approved parameters such as issuer, tenor composition and portfolio limit as
defined in the Bank’s FVOCI Business Model.
The table below shows the financial assets and financial liabilities’ liquidity information which
includes coupon cash flows categorized based on the contractual date on which the asset will be
realized and the liability will be settled. For financial assets at FVTPL, the analysis into maturity
grouping is based on the remaining period from the end of the reporting period to the expected
date the assets will be realized (amounts in millions).
Group
2022
On Up to 1 to 3 3 to 6 6 to 12 Beyond
Demand 1 month Months Months Months 1 year Total
Financial assets
Cash and other cash items P
=9,892 =‒
P P‒
= P‒
= P‒
= P‒
= P
=9,892
Due from BSP 72,286 22,336 ‒ ‒ ‒ ‒ 94,622
Due from other banks 46,240 ‒ ‒ ‒ ‒ ‒ 46,240
SPURRA 8,274 15,292 ‒ ‒ ‒ ‒ 23,566
136,692 37,628 ‒ ‒ ‒ ‒ 174,320
Financial assets at FVTPL
Derivative assets ‒ 445 367 125 192 905 2,034
Debt securities ‒ 7,478 ‒ ‒ ‒ ‒ 7,478
Equity securities ‒ ‒ ‒ ‒ ‒ 411 411
Financial assets at FVOCI
Debt securities ‒ 3,206 2,998 1,159 1,253 79,470 88,086
Financial assets at amortized
cost ‒ 1,450 1,539 2,710 6,149 340,496 352,344
‒ 12,579 4,904 3,994 7,594 421,328 450,399
Loans and other receivables 2,091 90,780 39,572 31,540 48,307 363,061 575,351
Other receivables
Accounts receivable ‒ ‒ ‒ ‒ ‒ 11,116 11,116
Accrued interest receivable ‒ 9,693 ‒ ‒ ‒ ‒ 9,693
Sales contract receivable ‒ 29 46 67 130 2,952 3,224
2,091 100,502 39,618 31,607 48,437 377,129 599,384
Other financial assets
Returned checks and other
cash items ‒ 30 ‒ ‒ ‒ ‒ 30
Sundry debits ‒ 154 ‒ ‒ ‒ ‒ 154
‒ 184 ‒ ‒ ‒ ‒ 184
Total assets P
=138,783 P
=150,893 P
=44,522 P
=35,601 P
=56,031 P
=798,457 P
=1,224,387
Non-derivative liabilities
Deposit liabilities
Demand P
=232,082 P‒
= P‒
= P‒
= P‒
= P‒
= P
=232,082
Savings 195,021 ‒ ‒ ‒ ‒ ‒ 195,021
Time and LTNCD 3,168 171,623 62,678 7,124 29,440 18,633 292,666
430,271 171,623 62,678 7,124 29,440 18,633 719,769
Bills payable ‒ 19,284 50,183 4,829 14,629 52,225 141,150
Notes and bonds payable ‒ 58 241 421 19,839 34,683 55,242
Manager’s checks 7,334 ‒ ‒ ‒ ‒ ‒ 7,334
Accrued interest payable ‒ 1,802 ‒ ‒ ‒ ‒ 1,802
Accounts payable ‒ 12,586 ‒ ‒ ‒ ‒ 12,586
Other liabilities ‒ 16,907 ‒ ‒ ‒ ‒ 16,907
437,605 222,260 113,102 12,374 63,908 105,541 954,790
Derivative Liabilities ‒ 923 393 92 191 799 2,398

Total liabilities P
=437,605 P
=223,183 P
=113,495 P
=12,466 P
=64,099 P
=106,340 P
=957,188
*SGVFS169521*
Group
2021
Financial assets
= =‒
P P‒
= P‒
= P‒
= P‒
= =8,905
P
Due from BSP 47,439 55,981 ‒ ‒ ‒ ‒ 103,420
Interbank loans receivable ‒ 17,495 ‒ ‒ ‒ ‒ 17,495
110,602 73,476 ‒ ‒ ‒ ‒ 184,078
Debt securities ‒ 4,575 ‒ ‒ ‒ ‒ 4,575
Equity securities ‒ ‒ ‒ ‒ ‒ ‒ ‒
Debt securities ‒ 25,000 26,695 32,734 22 275 84,726
cost 186 3,117 1,087 1,005 3,853 225,532 234,780
186 32,777 28,021 33,992 4,014 226,526 325,516
Loans and other receivables 2,704 74,117 34,881 19,958 29,879 266,905 428,444
Other receivables
Accrued interest receivable ‒ 7,276 ‒ ‒ ‒ ‒ 7,276
2,704 81,434 34,951 20,053 30,020 279,306 448,468
cash items ‒ 169 ‒ ‒ ‒ ‒ 169
Sundry debits ‒ 432 ‒ ‒ ‒ ‒ 432
‒ 601 ‒ ‒ ‒ ‒ 601
Total assets =113,492
P =188,288
P =62,972
P =54,045
P =34,034
P =505,832
P =958,663
P
Deposit liabilities
Demand P204,561
= =‒
P =‒
P =‒
P =‒
P =‒
P P204,561
=
Savings 136,430 ‒ ‒ ‒ ‒ ‒ 136,430
Time and LTNCD 2,796 131,090 30,147 4,077 12,678 53,842 234,630
343,787 131,090 30,147 4,077 12,678 53,842 575,621
Bills payable ‒ 8,551 12,475 1,475 15,380 15,152 53,033
Notes and bonds payable ‒ 432 239 6,635 26,842 46,179 80,327
Manager’s checks 6,864 ‒ ‒ ‒ ‒ ‒ 6,864
Accrued interest payable ‒ 787 ‒ ‒ ‒ ‒ 787
Other liabilities ‒ 8,775 ‒ ‒ ‒ 1,081 9,856
350,651 155,434 42,861 12,187 54,900 116,254 732,287
Derivative Liabilities 1 383 94 106 129 598 1,311

Total liabilities =350,652
P =155,817
P =42,955
P =12,293
P =55,029
P =116,852
P =733,598
P
Parent Bank
2022
Financial assets
=8,924 P
=‒ P
=‒ P
=‒ P
=‒ P
=‒ P
=8,924
Due from BSP 58,188 8,406 ‒ ‒ ‒ ‒ 66,594
SPURRA ‒ 14,646 ‒ ‒ ‒ ‒ 14,646
109,376 23,052 ‒ ‒ ‒ ‒ 132,428
Debt securities ‒ 7,408 ‒ ‒ ‒ ‒ 7,408
Debt securities ‒ 3,206 2,997 1,158 1,252 79,169 87,782
cost ‒ 1,299 1,423 2,678 5,934 328,341 339,675
‒ 12,358 4,787 3,961 7,378 408,461 436,945
Loans and other receivables ‒ 88,260 37,903 29,759 43,398 254,846 454,166
Other receivables
Accrued interest receivable ‒ 6,956 ‒ ‒ ‒ 6,956
‒ 95,237 37,945 29,820 43,518 264,022 470,542
cash items ‒ 30 ‒ ‒ ‒ ‒ 30
Sundry debits ‒ 154 ‒ ‒ ‒ ‒ 154
‒ 184 ‒ ‒ ‒ ‒ 184
Total assets P
=109,376 P
=130,831 P
=42,732 P
=33,781 P
=50,896 P
=672,483 P
=1,040,099
*SGVFS169521*
Parent Bank
2022
Deposit liabilities
Demand P
=233,365 P
=‒ P
=‒ P
=‒ P
=‒ P
=‒ P
=233,365
Savings 188,481 ‒ ‒ ‒ ‒ ‒ 188,481
Time and LTNCD 163 123,249 50,119 3,941 25,967 2,418 205,857
422,009 123,249 50,119 3,941 25,967 2,418 627,703
Bills payable ‒ 19,284 49,173 398 692 35,351 104,898
Notes and bonds payable ‒ 58 241 421 19,839 34,683 55,242
Manager’s checks 7,320 ‒ ‒ ‒ ‒ ‒ 7,320
Accrued interest payable ‒ 1,418 ‒ ‒ ‒ ‒ 1,418
Other liabilities ‒ 15,194 ‒ ‒ ‒ ‒ 15,194
429,329 170,256 99,533 4,760 46,498 72,452 822,828
Derivative liabilities ‒ 923 393 92 191 799 2,398

Total liabilities P
=429,329 P
=171,179 P
=99,926 P
=4,852 P
=46,689 P
=73,251 P
=825,226
Parent Bank
2021
Financial assets
= =‒
P P‒
= P‒
= P‒
= P‒
= P7,989
=
Due from BSP 45,228 22,253 ‒ ‒ ‒ ‒ 67,481
Interbank loans receivable ‒ 17,495 ‒ ‒ ‒ ‒ 17,495
104,526 39,748 ‒ ‒ ‒ ‒ 144,274
Derivative assets ‒ 85 239 253 139 677 1393
Debt securities ‒ 4,506 ‒ ‒ ‒ ‒ 4,506
Debt securities ‒ 25,000 26,678 32,733 ‒ ‒ 84,411
cost 186 3,058 968 874 3,623 221,731 230,440
186 32,649 27,885 33,860 3,762 222,450 320,792
Loans and other receivables ‒ 66,028 33,975 18,913 25,499 199,943 344,358
Other receivables
Accrued interest receivable ‒ 5,396 ‒ ‒ ‒ 5,396
‒ 71,457 34,040 19,003 25,629 207,899 358,028
Returned checks and other ‒ 169 ‒ ‒ ‒ ‒ 169
cash items
Sundry debits ‒ 431 ‒ ‒ ‒ ‒ 431
‒ 600 ‒ ‒ ‒ ‒ 600
Total assets =104,712
P =144,454
P =61,925
P =52,863
P =29,391
P =430,349
P =823,694
P
Deposit liabilities
Demand P206,254
= P‒
= P‒
= P‒
= P‒
= P‒
= P206,254
=
Savings 132,075 ‒ ‒ ‒ ‒ ‒ 132,075
Time and LTNCD 67 78,729 23,604 1,741 9,532 45,205 158,878
338,396 78,729 23,604 1,741 9,532 45,205 497,207
Bills payable ‒ 5,546 10,468 30 7,726 5,295 29,065
Notes and bonds payable ‒ 432 239 6,635 26,842 46,179 80,327
Manager’s checks 6,864 ‒ ‒ ‒ ‒ ‒ 6,864
Accrued interest payable ‒ 627 ‒ ‒ ‒ ‒ 627
Other liabilities ‒ 7,627 ‒ ‒ ‒ 1,081 8,708
345,260 97,788 34,311 8,406 44,100 97,760 627,625
Derivative liabilities 1 383 94 106 129 598 1311

Total liabilities =345,261
P =98,171
P =34,405
P = 8,512
P =44,229
P =98,358
P =628,936
P
*SGVFS169521*
BSP Reporting
Liquidity Coverage Ratio (LCR)

BSP Circular No. 905 provides the implementing guidelines on LCR and disclosure standards
that are consistent with Basel III framework. The LCR is calculated as the ratio of stock of high
quality liquid assets (HQLA) over the total net cash outflows over the next 30 calendar days,
which should not be lower than 100%. The Group is required to disclose information related to
the liquidity coverage ratio (LCR) in a single currency and on solo and consolidated basis starting
2019.
The Group’s and the Parent Bank’s LCR as of December 31, 2022 and 2021 follows (amounts in
millions):
December 31, 2022

Group Parent Bank
Total HQLA P
=284,622 P
=238,303
Total net cash outflows 191,939 167,553
LCR Ratio 148.29% 142.23%
December 31, 2021

Group Parent Bank
Total HQLA =296,558
P =247,494
P
Total net cash outflows 109,038 79,124
LCR Ratio 271.98% 312.79%
Net Stable Funding Ratio (NSFR)

On June 6, 2018, the BSP issued BSP Circular No.1007 covering the implementing guidelines on
the adoption of the Basel III Framework on Liquidity Standards – Net Stable Funding Ratio
(NSFR). The NSFR is aimed to promote long-term resilience against liquidity risk by requiring
banks to maintain a stable funding profile in relation to the composition of its assets and
off-balance sheet activities. It complements the LCR, which promotes short term resilience of a
bank's liquidity profile. Banks shall maintain an NSFR of at least 100 percent (100%) at all
times. The implementation of the minimum NSFR shall be phased in to help ensure that covered
banks can meet the standard through reasonable measures without disrupting credit extension and
financial market activities. Banks shall comply with the prescribed minimum ratio of 100%. As
of December 31, 2022 and 2021, the NSFR was at 123.81% and 148.88%, respectively, for the
Group, and at 122.03% and 150.21%, respectively, for the Parent Bank.
Market Risk
Market risk is the risk that the fair value or future cash flows of financial instruments will
fluctuate due to changes in market variables such as interest rate, foreign exchange rates and
equity prices. The Group classifies exposures to market risk into either trading book or banking
book. The market risk for the trading portfolio is managed and monitored based on a Value-at-
Risk (VaR) methodology. Meanwhile, the market risk for the non-trading positions are managed
and monitored using other sensitivity analyses.
*SGVFS169521*
The Parent Bank applies a VaR methodology to assess the market risk of positions held and to
estimate the potential economic loss based upon a number of parameters and assumptions for
various changes in market conditions. VaR is a method used in measuring financial risk by
estimating the potential negative change in the market value of a portfolio at a given confidence
level and over a specified time horizon. Currently, the Bank uses a 10-day 99% VaR.
The Parent Bank shifted from using the historical simulation with partial revaluation approach to
the historical simulation with full revaluation approach in calculating VaR starting May 2022.
The historical simulation with full revaluation approach is the general market accepted
methodology in the measurement of VaR. This new methodology recalculates the market value
of each financial product for each scenario by applying simulated risk factors based on historical
movements to the market-accepted valuation methodology defined for each product.
VaR may also be underestimated or overestimated due to the assumptions placed on risk factors
and the relationship between such factors for specific instruments. Even though positions may
change throughout the day, the VaR only represents the risk of the portfolios at the close of each
business day, and it does not account for any losses that may occur beyond the 99% confidence
level.
The VaR figures are backtested daily against actual and hypothetical profit and loss of the trading
book to validate the robustness of the VaR model. To supplement the VaR, the Parent Bank
performs stress tests wherein the trading portfolios are valued under extreme market scenarios
not covered by the confidence interval of the Parent Bank’s VaR model.
Since VaR is an integral part of the Parent Bank’s market risk management, VaR limits are
established annually for all financial trading activities and exposures against the VaR limits and
are monitored on a daily basis. Limits are based on the tolerable risk appetite of the Parent Bank.
A summary of the Parent Bank’s VaR position at December 31, 2022 and 2021 follows (amounts
in millions of Philippine pesos)
Foreign
Exchange Interest Rate Equity Total VaR
2022 P
=135.4 P
=1,132.7 =‒
P P
=1,574.3
Average daily 97.6 2,441.5 ‒ 3,141.7
Highest 233.3 5,001.8 ‒ 5,026.6
Lowest 7.9 1,132.7 ‒ 1,574.3
2021 P24.6
= P2,868.8
= =‒
P P2,893.4
=
Average daily 35.9 3,025.5 116.9 3,178.3
Highest 103.8 6,694.7 176.8 6,916.3
Lowest 8.3 1,962.0 ‒ 2,139.0
The high and low of the total portfolio may not equal to the sum of the individual components as
the highs and lows of the individual portfolios may have occurred on different trading days.
*SGVFS169521*
Interest Rate Risk

Interest rate risk in the banking book (IRRBB) is the current and prospective risk to earnings and
capital arising from adverse movements in interest rates that affect the bank’s banking book
positions. When interest rates change, the present value and timing of future cash flows change.
This, in turn, changes the underlying value of the Bank’s assets, liabilities and off-balance sheet
items, and hence its economic value. On the other hand, changes in interest rates also affect the
Bank’s earnings by altering interest rate-sensitive income and expenses, affecting its net interest
income (NII). The ALCO establishes appropriate asset and liability pricing in support of the
Bank’s balance sheet objectives.
The Group employs “gap analysis” to measure rate-sensitivity of the income and expenses, also
known as Earnings-at-Risk (EaR). This sensitivity analysis is performed at least every month.
The EaR measures the impact on the net interest income for any mismatch between the amounts
of interest-earning assets and interest-bearing liabilities within a one-year period. The EaR is
calculated by first distributing the interest sensitive assets and liabilities into tenor buckets based
on time remaining to the next repricing date or the time remaining to maturity if there is no
repricing and then subtracting the liabilities from the assets to obtain the repricing gap. The
repricing gap per tenor bucket is then multiplied by the assumed interest rate movement and
appropriate time factor to derive the EaR per tenor. The Bank uses one-year differences in the
term structure of the different benchmark curves as the bases for the calculation of interest rate
risk factor across all currencies. The 1st year (one-year) EaR is derived from the summation of the
EaR per tenor within one year is subject to the established EaR limit per currency. With the
acquisition of Citibank’s retail portfolio, EaR limits were reviewed and updated to ensure that the
risks brought by the changes in the balance sheet and liquidity strategies are within the risk
appetite of the Bank.
As an additional interest rate risk measure, the Bank also calculates EaR for the 2nd and 3rd years
in order to measure medium term vulnerabilities, i.e., those occurring in the second and third
years. However, these are not subject to the EaR limit but are for monitoring purposes only.
Non-maturing or repricing assets or liabilities are considered to be non-interest rate sensitive and
are not included in the measurement.
A positive gap occurs when the amount of interest rate sensitive assets exceeds the amount of
interest rate sensitive liabilities while a negative gap occurs when the amount of interest rate
sensitive liabilities exceeds the amount of interest rate sensitive assets. Accordingly, during a
period of rising interest rates, an entity with a positive gap will have more interest rate sensitive
assets repricing at a higher interest rate than interest rate sensitive liabilities which will be
favorable to it. During a period of falling interest rates, an entity with a positive gap will have
more interest rate sensitive assets repricing at a lower interest rate than interest rate sensitive
liabilities, which will be unfavorable to it.
*SGVFS169521*
The asset-liability gap position of the Group and Parent Bank at carrying amounts follows
(amounts in millions of Philippine pesos):
Group
2022
Beyond
Up to Six Months Beyond
Six Months To One Year One Year Total
Resources
Loans P
= 175,926 P
= 67,406 P
= 236,326 P
= 479,658
Placements 103,164 ‒ 61,240 164,404
Investments 6,539 2,678 323,826 333,043
285,629 70,084 621,392 977,105
Liabilities
Deposit liabilities 235,191 27,557 448,556 711,304
Bills payable 94,048 13,431 25,368 132,847
Notes and bonds payable 8,313 19,035 24,296 51,644
337,552 60,023 498,220 895,795
Asset-Liability Gap (P
= 51,923) P
= 10,061 P
= 123,172 P
= 81,310
Group
2021
Beyond
Resources
Loans =161,687
P =39,162
P =158,926
P =359,775
P
Placements 127,719 ‒ 47,439 175,158
Investments 1,544 2,448 232,617 236,609
290,950 41,610 438,982 771,542
Liabilities
Bills payable 29,303 7,582 14,283 51,168
210,161 44,659 433,703 688,523
Asset-Liability Gap =80,789
P (P
=3,049) =5,279
P =83,019
P
Parent Bank
2022
Beyond
Resources
Loans P
= 164,730 P
= 57,440 P
= 166,832 P
= 389,002
Placements 56,906 – 66,580 123,486
Investments 6,464 2,658 314,330 323,452
228,100 60,098 547,742 835,940
Liabilities
Bills payable 88,764 – 10,545 99,309
271,992 43,991 458,891 774,874
Asset-Liability Gap (P
= 43,892) P
= 16,107 P
= 88,851 P
= 61,066
*SGVFS169521*
Parent Bank
2021
Beyond
Resources
Loans =142,490
P =28,877
P =119,680
P =291,047
P
Placements 91,052 – 45,228 136,280
Investments 1,450 2,428 228,138 232,016
234,992 31,305 393,046 659,343
Liabilities
Bills payable 23,011 1 5,566 28,578
140,429 33,973 417,025 591,427
Asset-Liability Gap =94,563
P (P
=2,668) (P
=23,979) =67,916
P
EAR is complemented by stress tests which are conducted quarterly. It involves subjecting the
total interest rate sensitive assets and liabilities within one year to probable short-term and
medium-term interest rate movements, assuming parallel and non-parallel (flatteners and
steepeners) in the yield curve.
Additionally, the Bank also monitors long-term sensitivity to interest rate risk of the Bank’s
balance sheet through the Economic Value of Equity (EVE) method. EVE measures the
economic value which provides a more comprehensive view of potential long-term effects of
changes in interest rates. EVE is defined as the net cash flows of the Bank’s assets and liabilities
which affect the Bank’s capital. Similar to EaR, EVE is also complemented by stress tests
conducted quarterly.
The Bank’s interest rate sensitive asset and liability positions are analyzed based on its cash
flows, and its present value are computed using appropriate market rates which include the
current risk-free rate plus the corresponding margin. On the other hand, the present values of
non-interest sensitive assets and liabilities will be kept at their carrying values.
The Bank’s risk management program includes measuring and monitoring the risks associated
with fluctuations in market interest rates on its net interest income and capital ensuring that the
exposures in interest rates are kept within acceptable limits.
The following table sets out the impact of changes in interest rates on the Group’s and Parent
Bank’s net interest income (amounts in millions of Philippine pesos):
Group Parent Bank

Increase (decrease) in interest rates
(in basis points) 100 (100) 100 (100)
2022
Change in annualized net interest income (P
= 927.8) P
=927.8 (P
= 606.3) P
=606.3
As a percentage of net interest income (1.49%) 1.49% (1.32%) 1.32%
2021
Change in annualized net interest income (P
=346) =346
P (P
=173.4) P173.4
=
As a percentage of net interest income (0.95%) 0.95% (0.67%) 0.67%
*SGVFS169521*
This sensitivity analysis is performed for risk management purposes and assumes no other
changes in the repricing structure. Actual changes in net interest income may vary from the
Bank’s internal model.
Foreign Exchange Risk

Foreign exchange risk is the risk to earnings or capital arising from changes in foreign exchange
rates.
The Group’s net foreign exchange exposure, taking into account any spot or forward exchange
contracts, is computed as foreign currency assets less foreign currency liabilities. The foreign
exchange exposure is limited to the day-to-day, over-the-counter buying and selling of foreign
exchange in the Group’s branches, as well as foreign exchange trading with corporate accounts
and other financial institutions. The Group is permitted to engage in proprietary trading to take
advantage of foreign exchange fluctuations.
The breakdown of the financial resources and financial liabilities of the Group and the Parent
Bank as to foreign currency-denominated balances (excluding FCDU USD-denominated
financial resources and liabilities, which functional currency is in USD), translated to Philippine
pesos as of December 31, 2022 and 2021 is shown below:
Group
2022
Other
Foreign
U.S. Dollars Currencies Total
Resources:
=15,207 P
=592,166 P
=607,373
Due from other banks 5,507,861 2,783,336 8,291,197
Financial assets at FVTPL − 955 955
Financial assets at amortized cost − 1,868,279 1,868,279
Loans and other receivables 3,579,372 147,946 3,727,318
9,102,440 5,392,682 14,495,122
Liabilities:
Deposit liabilities − 4,416,831 4,416,831
Bills payable 75,173,396 12,103 75,185,499
Notes and bonds payable 6,969,375 − 6,969,375
Derivative liabilities − 1,567 1,567
Accrued interest and other expenses 451,087 210 451,297
Other liabilities 59,019 98,364 157,383
82,652,877 4,529,075 87,181,952
Currency swaps and forwards 49,162,467 (648,950) 48,513,517
Net exposure (P
= 24,387,970) P
=214,657 (P
= 24,173,313)
*SGVFS169521*
Group
2021
Other
Foreign
Resources:
Cash and other cash items =–
P =155,222
P =155,222
P
Financial assets at FVTPL 296,385 297 296,682
Financial assets at amortized cost – 1,819,081 1,819,081
7,427,312 4,120,294 11,547,606
Liabilities:
Deposit liabilities – 3,424,433 3,424,433
Bills payable 17,533,771 2,617 17,536,388
Notes and bonds payable 6,363,928 – 6,363,928
Derivative liabilities 282,180 1,621 283,801
Other liabilities 71 78,055 78,126
24,214,731 3,507,034 27,721,765
Net exposure (P
=9,975,674) =211,894
P (P
=9,763,780)
Parent Bank
2022
Other
Foreign
Resources:
=15,207 P
=592,166 P
=607,373
Financial assets at FVTPL − 955 955
8,917,952 5,392,681 14,310,633
Liabilities:
Bills payable 75,173,396 12,103 75,185,499
Derivative liabilities − 1,567 1,567
Other liabilities 59,019 98,364 157,383
82,652,877 4,529,075 87,181,952
Net exposure (P
= 24,572,458) P
=214,656 (P
= 24,357,802)
*SGVFS169521*
Parent Bank
2021
Other
Foreign
Resources:
Cash and other cash items =−
P =155,222
P =155,222
P
Financial assets at FVTPL 296,385 297 296,682
7,294,589 4,120,294 11,414,883
Liabilities:
Bills payable 17,533,771 2,617 17,536,388
Derivative liabilities 282,180 1,621 283,801
Other liabilities 71 78,055 78,126
24,214,731 3,507,034 27,721,765
Net exposure (P
=10,108,397) =211,894
P (P
=9,896,503)
The Parent Bank’s policy is to maintain foreign currency exposure within acceptable limits and
within existing regulatory guidelines. The Parent Bank believes that its profile of foreign
currency exposure on its assets and liabilities is within conservative limits for a financial
institution engaged in the type of business in which the Parent Bank is involved.
The following table illustrates the sensitivity of the net results and capital funds to the changes in
foreign exchange rates on the Parent Bank’s financial assets and financial liabilities in the RBU.
The percentages change (increase and decrease) have been determined based on the average
market volatility in exchange rates in the previous 12 months, using a confidence level of 99%.
The sensitivity analysis is based on the Parent Bank’s foreign currency-denominated financial
instruments held at each reporting date, including currency swaps and forwards.
2022 2021
Effect on Effect on
Net Profit Net Profit
% Change For the Year % Change For the Year
U.S. dollars 1.0% (245,721) 1.0% (104,773)
Japanese yen 2.0% 1,250 2.5% 822
Euros 1.5% 2,529 2.0% 2,122
Others 1.6% (355) 1.6% 1,384
Operational Risk
BSP Circular 900, Guidelines on Operational Risk Management, serve as the groundwork for the
Bank’s Operational Risk Management (ORM) framework. This is to standardize the approach
undertaken by the Bank in order to facilitate consistently strong ORM practices across the
organization.
Operational risk is defined as the risk of loss arising from direct or indirect loss from inadequate
or failed internal processes, people and systems or from external events. This definition includes
legal risk, but excludes strategic and reputational risk. Direct loss being the result primarily from
*SGVFS169521*
an operational failure while an indirect loss relates to the impact of operational risk on other risks
such as market, credit or liquidity risk.
Each specific unit of the Bank has its roles and responsibilities in the management of operational
risk and these are clearly stated in the ORM framework. At the BOD level, an ORMC was
formed to provide overall direction in the management of operational risk, aligned with the
overall business objectives. Key to the effective implementation of the operational risk
management framework is a governance structure that transparently defines the lines of
responsibility from the BOD down to the Business and Functional Units level.
The ORMC was formed and given the mandate to build and lead the roadmap in developing the
foundations and systems necessary for the effective implementation of an Operational Risk
Management Framework. The ORM, together with all other Risk Units, reports directly to the
Chief Risk Officer.
In managing products, services and systems, these are implemented only after a thorough
operational risk evaluation. As part of the product and systems approval process, product owners
and managers ensure that risks are clearly identified and adequately controlled and mitigated.
For existing products, services and systems, regular reviews are conducted and controls are
assessed to determine continued effectiveness. The Parent Bank, as part of its continuing effort
to manage operational risk, has ensured that the basic controls to manage exposure to operational
risk have been embedded in its processes.
Legal Risk and Regulatory Risk Management

Legal risk pertains to the Parent Bank’s exposure to losses arising from cases decided not in
favor of the Parent Bank where significant legal costs have already been incurred, or in some
instances, where the Parent Bank may be required to pay damages. The Parent Bank is often
involved in litigation in enforcing its collection rights under loan agreements in case of borrower
default. The Parent Bank may incur significant legal expenses as a result of these events, but the
Parent Bank may still end up with non-collection or non-enforcement of claims. The Parent
Bank has established measures to avoid or mitigate the effects of these adverse decisions and
engages several qualified legal advisors, who were endorsed to and carefully approved by senior
management. At year-end, the Parent Bank also ensures that material adjustments or disclosures
are made in the financial statements for any significant commitments or contingencies which may
have arisen from legal proceedings involving the Parent Bank.
Regulatory risk refers to the potential risk for the Parent Bank and its subsidiaries to suffer
financial loss due to changes in the laws, monetary, tax, or other governmental regulations of the
country. Compliance risk is the Bank’s potential exposure to legal penalties, financial forfeiture
and material loss, resulting from its failure to act in accordance with industry laws and
regulations, internal policies or prescribed best practices. The monitoring of the Parent Bank’s
and subsidiaries’ compliance with these regulations is the primary responsibility of the entity’s
CCO. The study of the potential impact of new laws and regulations is coordinated by the CCO
with the Legal Group. The CCO is responsible for communicating and disseminating new rules
and regulations to all units, analyzing and addressing compliance issues, performing periodic
compliance testing, and regularly reporting to the CGC and the BOD.
*SGVFS169521*
Capital Management - 69 -
5. Capital Management
Regulatory Capital
As the Parent Bank’s regulator, the BSP sets and monitors capital requirements of the Parent
Bank.
In implementing current capital requirements, the BSP requires the Group and the Parent Bank to
maintain a minimum capital amount and a prescribed ratio of qualifying capital to risk-weighted
assets, known as the “capital adequacy ratio” (CAR). Risk-weighted assets is the aggregate value
of assets weighted by credit risk, market risk, and operational risk, based on BSP-prescribed
formula provided under BSP Circular No. 360 and BSP Circular No. 538 which contain the
implementing guidelines for the revised risk-based capital adequacy framework to conform to
Basel II recommendations.
Effective January 1, 2014, the BSP has adopted the new risk-based capital adequacy framework
particularly on the minimum capital and disclosure requirements for the Philippine banking
system in accordance with the Basel III standards through BSP Circular No. 781. The adopted
Basel III risk-based capital adequacy framework requires the Group to maintain:
(a) Common Equity Tier 1 (CET1) of at least 6.0% of risk-weighted assets;

(b) Tier 1 Capital of at least 7.5% of risk-weighted assets;
(c) Qualifying Capital (Tier 1 plus Tier 2 Capital) of at least 10.0% of risk-weighted assets;
and,
(d) Capital Conservation Buffer of 2.5% of risk-weighted assets, comprised of CET1 Capital.
On November 29, 2018, the BSP amended the requirements of Subsection X115.1 of the Manual
for Regulations for Banks (MORB) through BSP Circular No. 1024. The amendment requires
the Group and the Parent Bank to maintain, with respect to the CET 1 requirement, in addition to
the minimum, the following capital buffers:
(a) Capital conservation buffer (CCB) of 2.5%; and

(b) Countercyclical capital buffer (CCyB) of 0% subject to upward adjustment to a rate
determined by the MB when systemic conditions warrant but not to exceed to 2.5%.
The Group’s and the Parent Bank’s regulatory capital position as of December 31, 2022 and
2021, as reported to the BSP, follow (amounts in millions):
Group Parent Bank
2022 2021 2022 2021
Common Equity Tier 1 Capital
Paid-up common stock = 21,421
P =12,194
P = 21,421
P =12,194
P
Common stock dividends distributable – 3,048 – 3,048
Additional paid in capital 47,950 14,215 47,950 14,215
Surplus free 77,052 68,301 78,044 69,543
Undivided profits 11,506 12,913 12,093 12,754
Other comprehensive income/(loss) (15,289) (2,887) (15,384) (2,807)
Minority interest in financial allied subsidiary 866 796 – –
Sub-total 143,506 108,580 144,124 108,947
Less Regulatory Adjustments:
Total outstanding unsecured credit accommodations,
both direct and indirect, to DOSRI, and unsecured
loans, other credit accommodations and guarantees
granted to subsidiaries and affiliates 293 441 1,191 330
Deferred income tax 7,288 6,478 5,301 5,172
Goodwill 57,232 13,936 51,456 7,887
Other intangible assets 3,760 2,233 1,499 1,723
Defined benefit pension fund assets 7 15 – –
Un-booked valuation reserves 2,109 2,435 1,694 2,019
*SGVFS169521*
Group Parent Bank

2022 2021 2022 2021
Investments in equity of consolidated subsidiary banks
and quasi banks, and other financial allied undertakings =–
P =–
P = 31,325
P =22,722
P
Other equity investments in non-financial allied and
non-allied undertakings – – – –
Total regulatory adjustments to Common Equity
Tier 1 capital 70,689 25,538 92,466 39,853
Total Common Equity Tier 1 capital 72,817 83,042 51,658 69,094
Total Tier 1 capital = 72,817
P =83,042
P = 51,658
P =69,094
P
Tier 2 Capital
General loan loss provision P4,443
= =3,820
P P3,268
= =2,588
P
Unsecured subordinated debt 6,756 6,800 6,756 6,800
Total Tier 2 capital 11,199 10,620 10,024 9,388
Net Tier 1 capital 72,817 83,042 51,658 69,094
Net Tier 2 capital 11,199 10,620 10,024 9,388
Total qualifying capital 84,016 93,662 61,682 78,482
Credit risk-weighted assets 556,365 451,323 455,410 381,172
Market risk-weighted assets 7,127 4,619 6,831 4,361
Operational risk-weighted assets 80,922 52,642 60,374 40,009
Total risk-weighted assets = 644,414
P =508,584
P = 522,615
P =425,542
P
Capital ratios:
Total regulatory capital expressed as percentage of total
risk weighted assets 13.04% 18.42% 11.80% 18.44%
Total Tier 1 expressed as percentage of total
risk-weighted assets 11.30% 16.33% 9.88% 16.24%
Total Common Equity Tier 1 expressed as percentage
of total risk-weighted assets 11.30% 16.33% 9.88% 16.24%
Conservation buffer 5.30% 10.33% 3.88% 10.24%
The Group and the Parent Bank have fully complied with the CAR requirements of the BSP.
The breakdown of credit risk-weighted assets, market risk-weighted assets and operational
risk-weighted assets follow (amounts in millions):
Group Parent Bank

2022 2021 2022 2021
On-books assets P
=534,813 P436,531
= P
=433,867 =366,398
P
Off-books assets 10,410 10,699 10,401 10,681
Counterparty risk-weighted
assets in the banking books 9,619 2,830 9,619 2,830
assets in the trading books 1,523 1,263 1,523 1,263
Total Credit Risk-Weighted Assets P
=556,365 =451,323
P P
=455,410 =381,172
P
Capital Requirements P
=55,637 =45,132
P P
=45,541 =38,117
P
Interest rate exposures P
=5,419 =3,511
P P
=5,419 =3,511
P
Equity exposures – – – –
Foreign exchange exposures 1,708 1,108 1,412 850
Total Market Risk-Weighted Assets P
=7,127 =4,619
P P
=6,831 =4,361
P
=713 =462
P P
=683 =436
P
Total Operational Risk-Weighted Assets - Basic
indicator P
=80,922 P52,642
= P
=60,374 P40,009
=
=8,092 =5,264
P P
=6,037 =4,001
P
*SGVFS169521*
The total credit exposure broken down by type of exposures and risk weights follow (amounts in
millions):
Group
2022
Total
Credit Risk
Credit Risk Exposure Total
Total Credit after Risk Weighted
Risk Exposure Mitigation 0%-50% 75%-100% 150% Assets
Risk-Weighted On-Books Assets
Cash on hand = 9,873
P = 9,873
P = 9,873
P =–
P =–
P =–
P
Checks and other cash items 18 18 18 – – 4
Due from BSP 94,630 94,630 94,630 – – –
Due from other banks 46,254 46,254 43,111 3,144 – 22,893
Financial assets at FVTPL 39 39 – 39 – 39
Financial assets at FVOCI 80,679 69,443 49,460 19,983 – 24,253
Financial assets at amortized cost 248,372 248,372 228,213 20,159 – 27,287
Loans and receivables 461,304 459,917 91,711 361,647 6,560 407,172
SPURRA 23,565 3,323 3,323 – – –
Sales contract receivable (SCR) 2,162 2,162 – 1,039 1,123 2,724
ROPA 5,297 5,297 – – 5,297 7,946
Other assets 39,045 39,045 – 39,045 – 39,045
Total risk-weighted on-books assets not
covered by CRM 1,011,238 978,373 520,339 445,056 12,980 531,363
Total risk-weighted on-books assets
covered by CRM – 32,864 32,864 – – 3,450
= 1,011,238
P = 1,011,237
P = 553,203
P = 445,056
P = 12,980
P = 534,813
P
Risk-Weighted Off-Books Assets
Direct credit substitutes (e.g., general
guarantee of indebtedness and
acceptances) = 4,536
P =–
P =–
P = 4,536
P =–
P = 4,536
P
Transaction-related contingencies
(e.g., performance bonds, bid
bonds, warrantees and stand-by
LCs related to particular
transactions) 4,600 – – 2,300 – 2,300
Trade-related contingencies arising
from movements of goods
(e.g., documentary credits
collateralized by the underlying
shipments) and commitments with
an original maturity of up to one
year 17,873 – – 3,574 – 3,574
P27,009
= P–
= P–
= = 10,410
P P–
= = 10,410
P
Counterparty Risk-Weighted Assets
in the Banking Books
Repo-style Exposure = 97,000
P = 18,770
P = 18,302
P = 468
P =–
P = 9,619
P
in the Trading Books
Interest Rate Contracts = 1,115
P =–
P =–
P =–
P P–
= =–
P
Exchange Rate Contracts 107,982 2,413 1,685 728 – 1,523
Total = 109,097
P = 2,413
P = 1,685
P = 728
P =–
P = 1,523
P
*SGVFS169521*
Group
2021
Total
Credit Risk
Credit Risk Exposure Total
Cash on hand =8,893
P =8,893
P =8,893
P =–
P =–
P =–
P
Checks and other cash items 10 10 10 – – 2
Due from BSP 103,413 103,413 103,413 – – –
Financial assets at FVTPL 38 38 38 – 38
Financial assets at FVOCI 66,230 48,510 27,306 21,204 – 21,925
SPURRA 23,421 4,684 4,684 – – –
Sales contract receivable (SCR) 1,421 1,421 – 134 1,286 2,064
ROPA 5,891 5,891 – – 5,891 8,837
Other assets 27,058 27,058 2 27,056 – 27,056
covered by CRM 800,851 764,272 391,213 358,593 14,465 432,784
covered by CRM – 36,579 36,579 1 – 3,747
=800,851
P =800,851
P =427,792
P =358,594
P =14,465
P =436,531
P
acceptances) =2,884
P =–
P =–
P =2,884
P =–
P =2,884
P
Transaction-related contingencies
(e.g., performance bonds, bid
bonds, warrantees and stand-by
LCs related to particular
transactions) 2,656 – – 1,328 – 1,328
from movements of goods
(e.g., documentary credits
collateralized by the underlying
shipments) and commitments with
an original maturity of up to one
year 32,436 – – 6,487 – 6,487
=37,976
P =–
P =–
P =10,699
P =–
P =10,699
P
Counterparty Risk-Weighted Assets in
the Banking Books
Repo-style Exposure =23,575
P =4,902
P =4,144
P =758
P =–
P =2,830
P
the Trading Books
Interest Rate Contracts P2,550
= =–
P =–
P =–
P =–
P =–
P
Credit Derivatives 512 27 27 – – 14
Total =62,212
P =1,791
P =1,037
P =754
P =–
P =1,263
P
*SGVFS169521*
Parent Bank
2022
Total
Credit Risk Total
Credit Risk Exposure
Cash on hand P8,924
= P8,924
= P8,924
= =–
P =–
P P–
=
Due from BSP 66,595 66,595 66,595 – – –
Financial assets through other
comprehensive income 80,384 69,148 49,392 19,756 – 24,015
SPURRA 14,645 1,539 1,539 – – –
SCR 2,063 2,063 – 989 1,074 2,600
ROPA 3,839 3,839 – – 3,839 5,759
Other assets 26,189 26,189 – 26,189 – 26,189
covered by CRM 863,994 838,347 476,448 354,642 7,257 430,428
covered by CRM – 25,647 25,647 – – 3,439
= 863,994
P = 863,994
P = 502,095
P = 354,642
P = 7,257
P = 433,867
P
acceptances) = 4,536
P =–
P =–
P = 4,536
P =–
P = 4,536
P
Transaction-related contingencies (e.g.,
performance bonds, bid bonds,
warrantees and stand-by LCs
related to particular transactions) 4,600 – – 2,300 – 2,300
from movements of goods (e.g.,
documentary credits collateralized
by the underlying shipments) and
commitments with an original
maturity of up to one year 17,826 – – 3,565 – 3,565
P26,962
= P–
= P–
= = 10,401
P P–
= = 10,401
P
in the Banking Books
Repo-style Exposure = 97,000
P = 18,770
P = 18,302
P = 468
P =–
P = 9,619
P
in the Trading Books
Interest Rate Contracts = 1,115
P =–
P =–
P =–
P P–
= =–
P
Total = 109,097
P = 2,413
P = 1,685
P = 728
P =–
P = 1,523
P
*SGVFS169521*
Parent Bank
2021
Total
Credit Risk Total
Credit Risk Exposure
Cash on hand P7,989
= P7,989
= P7,989
= =–
P =–
P =–
P
Due from BSP 67,480 67,480 67,480 – – –
Due from other banks 51,337 51,337 50,924 413 – 25,287
Financial assets through other
comprehensive income 66,083 48,363 27,159 21,204 – 21,906
SPURRA 15,541 3,108 3,108 – – –
SCR 1,352 1,352 – 101 1,251 1,977
ROPA 4,359 4,359 – – 4,359 6,538
Other assets 18,731 18,731 – 18,731 – 18,731
covered by CRM 682,739 652,520 345,655 297,420 9,444 362,658
covered by CRM – 30,220 30,219 1 – 3,740
=682,739
P =682,740
P =375,874
P =297,421
P =9,444
P =366,398
P
acceptances) =2,884
P =–
P =–
P =2,884
P =–
P =2,884
P
Transaction-related contingencies (e.g.,
performance bonds, bid bonds,
warrantees and stand-by LCs
related to particular transactions) 2,656 – – 1,328 – 1,328
from movements of goods (e.g.,
documentary credits collateralized
by the underlying shipments) and
commitments with an original
maturity of up to one year 32,345 – – 6,469 – 6,469
=37,885
P =–
P =–
P =10,681
P =–
P =10,681
P
the Banking Books
Repo-style Exposure =23,575
P =4,902
P =4,144
P =758
P =–
P =2,830
P
the Trading Books
Interest Rate Contracts P2,550
= =–
P =–
P =–
P =–
P =–
P
Credit Derivatives 512 27 27 – – 14
Total =62,212
P =1,791
P =1,037
P =754
P =–
P =1,263
P
Risk weighted on-balance sheet assets covered by credit risk mitigants were based on
collateralized transactions as well as guarantees by the Philippine National Government and
those guarantors and exposures with the highest credit rating.
Standardized credit risk weights were used in the credit assessment of asset exposures. Third
party credit assessments were based on the ratings by Standard & Poor’s, Moody’s, Fitch and
Philratings on exposures to Sovereigns, Multilateral Development Banks, Banks, Local
Government Units, Government Corporations and Corporates.
*SGVFS169521*
Minimum Capital Requirement

Under the relevant provisions of current BSP regulations, the required minimum capitalization of
a universal bank is =
P20.0 billion both as of December 31, 2022 and 2021. As of those dates, the
Bank is in compliance with these regulations.
Basel III Leverage Ratio (BLR)

BSP Circular Nos. 881 and 990 cover the implementing guidelines on the BLR framework
designed to act as a supplementary measure to the risk-based capital requirements and shall not
be less than 5.00%. Effective July 1, 2018, the monitoring of the leverage ratio was implemented
as a Pillar I minimum requirement.
The details of the BLR as of December 31, 2022 and 2021 follow (amounts in millions, except
for percentages):
Consolidated Parent Bank

2022 2021 2022 2021
Tier 1 Capital P
=72,817 =83,042
P P
=51,658 =69,094
P
Exposure Measure 1,035,178 820,457 888,335 702,738
BLR 7.03% 10.12% 5.82% 9.83%
Under the framework, BLR is defined as the capital measure divided by the exposure measure.
Capital measure is Tier 1 capital. Exposure measure is the sum of on-balance sheet exposures,
derivative exposures, security financing exposures and off-balance sheet items.
Ensuring Sufficient Capital

On January 15, 2009, the BSP issued Circular No. 639, which articulates the need for banks to
adopt and document an Internal Capital Adequacy Assessment Process (ICAAP). All universal
and commercial banks are expected to perform a thorough assessment of all their material risks,
as well as maintain capital adequate to support these risks. This is intended to complement the
current regulatory capital requirement of at least 10% of risk assets, which only covers credit,
market and operational risks. On December 29, 2009, the BSP issued Circular No. 677 that
effectively extends the implementation of the ICAAP from January 2010 to January 2011.
Cognizant of the importance of a strong capital base to meet strategic and regulatory
requirements, the Parent Bank has adopted a robust ICAAP on a group-wide level that is
consistent with its risk philosophy and risk appetite. The ICAAP Document embodies the
Group’s risk philosophy, risk appetite, and risk governance framework and structure, and
integrates these with: (a) the Group’s strategic objectives and long-term strategies; (b) the
five-year financial and business plans; and, (c) the capital plan and dividend policy.
The ICAAP’s objective is to ensure that the BOD and senior management actively and promptly
identify and manage the material risks arising from the general business environment, and that an
appropriate level of capital is maintained to cover these risks.
On January 4, 2018, the BSP issued Circular No. 989 which mandates the conduct of stress
testing exercise of banks. The Group’s ICAAP Document considered the impact of severe but
plausible scenarios on the Group’s capital position. The results are thoroughly discussed during
RMC meetings, and reported to the Board. In the course of its discussions, the BOD and senior
management may request for additional stress testing scenarios or revisions to the test
assumptions in order to better align these to current trends and forecasts.
*SGVFS169521*
Capital Management and
Segment Reporting - 76 -
The Group has a cross-functional ICAAP technical team, comprised of representatives from the
core risk management units - credit, market, operational, information technology, and emerging
risks; corporate planning; financial controllership; treasury; internal audit; and compliance. This
ensures a well-coordinated approach to the development, documentation, implementation,
review, improvement, and maintenance of the various sub-processes included in the ICAAP.
The key members of the ICAAP technical team are enrolled in further training as well as various
fora and briefings to enhance their knowledge and expertise particularly on the subjects of
ICAAP, Basel III, and their interface with PFRS.
The Group’s ICAAP Document is subjected each year to an independent review by the Internal
Audit Division (IAD) to provide reasonable assurance that the Group has met the regulatory
requirements. For the 2022 ICAAP Document submission, the results of the audit assessment
were presented to the Audit Committee and the BOD.
Based on IAD’s assessment of the ICAAP document, its related supporting documents, and
existing processes and structures, IAD reported that the Group has satisfactorily complied with
the minimum requirements prescribed in BSP Circular No. 639. Presence of a proper governance
and oversight function of the ICAAP, comprehensive risk management framework, and sound
capital management process were verified in the audit process. For 2022, the Group and Parent
Bank’s ICAAP Document was submitted to the BSP on April 11, 2022.
6. Segment Reporting
Business Segments
The Group’s main operating businesses are organized and managed separately according to the
nature of products and services provided and the different markets served, with each segment
representing a strategic business unit. These are also the basis of the Group in reporting to its
chief operating decision-maker for its strategic decision-making activities. The Group’s main
business segments are presented below.
(a) Consumer Banking
This segment principally handles individual customers’ deposits and provides consumer type
loans, such as automobiles and mortgage financing, credit card facilities and funds transfer
facilities.
(b) Corporate and Commercial Banking
This segment principally handles loans and other credit facilities and deposit and current
accounts for corporate, institutional, small and medium enterprises, and middle market
customers.
(c) Treasury and Trust
This segment is principally responsible for managing the Bank’s liquidity and funding
requirements, and handling transactions in the financial markets covering foreign exchange,
fixed income trading and investments, and derivatives. The segment also includes trust, asset
management and fiduciary services provided by the Bank to its customers.
(d) Headquarters
This segment includes corporate management, support and administrative units not
specifically identified with Consumer Banking, Corporate and Commercial Banking or
Treasury.
*SGVFS169521*
Segment Reporting - 77 -
These segments are the basis on which the Group reports its primary segment information.
Transactions between segments are conducted at estimated market rates on an arm’s length
basis.
Segment resources and liabilities comprise operating resources and liabilities including items
such as taxation and borrowings. Revenues and expenses that are directly attributable to a
particular business segment and the relevant portions of the Group’s revenues and expenses
that can be allocated to that business segment are accordingly reflected as revenues and
expenses of that business segment.
Analysis of Segment Information

Segment information of the Group as of and for the years ended December 31, 2022, 2021 and
2020 follow (amounts in millions):
Corporate and
Consumer Commercial
Banking Banking Treasury Headquarters Total
December 31, 2022
Results of operations
Net interest income and
other income P33,984
= P8,965
= P6,445
= P2,806
= P52,200
=
Other expenses (16,890) (3,330) (2,026) (9,282) (31,528)
Income before credit
losses and income tax = 17,094
P = 5,635
P = 4,419
P (P
= 6,476) 20,672
Provision for credit losses (4,068)
Tax expense (3,931)
Net income = 12,673
P
Segment resources P355,635
= P234,622
= P350,252
= P152,229
= P
= 1,092,738
Segment liabilities = 527,698
P = 129,613
P = 216,889
P = 70,396
P = 944,596
P
Other information:
Depreciation and amortization = 1,100
P P10
= P12
= = 486
P ₱1,608
Capital expenditures 974 273 140 2,779 4,166
Corporate and
Consumer Commercial
December 31, 2021
other income P19,574
= =10,070
P =14,078
P P1,394
= P45,116
=
Other expenses (11,314) (2,754) (1,870) (8,382) (24,320)
losses and income tax =8,260
P =7,316
P =12,208
P (P
= 6,988) 20,796
Tax expense (2,407)
Net income =12,578
P
= P211,258
= P343,716
= P50,425
= =831,095
P
Segment liabilities =397,983
P =132,848
P =121,784
P =66,267
P =718,882
P
Other information:
Depreciation and amortization =995
P =9
P =9
P =611
P ₱1,624
*SGVFS169521*
Segment Reporting and
Fair Value Measurement and Offsetting of Financial Assets and Financial Liabilities - 78 -
Corporate and
Consumer Commercial
December 31, 2020
other income =17,244
P =10,776
P =14,558
P (P
= 481) P42,097
=
Other expenses (9,839) (2,556) (2,046) (6,932) (21,373)
losses and income tax =7,405
P =8,220
P =12,512
P (P
= 7,413) 20,724
Tax expense (781)
Net income =11,561
P
= P191,700
= P263,197
= P121,558
= =774,459
P
Segment liabilities =325,529
P =142,167
P =137,240
P =64,371
P =669,307
P
Other information:
Depreciation and amortization =984
P =3
P P7
= =413
P ₱1,407
7. Fair Value Measurement and Offsetting of Financial Assets and Financial Liabilities
Fair Value Hierarchy

In accordance with PFRS 13, Fair Value Measurement, the fair value of financial assets and
liabilities and non-financial assets which are measured at fair value on a recurring or
non-recurring basis and those assets and liabilities not measured at fair value but for which fair
value is disclosed in accordance with other relevant PFRS, are categorized into three levels based
on the significance of inputs used to measure the fair value. The fair value hierarchy has the
following levels:
 Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
 Level 2: inputs other than quoted prices included within Level 1 that are observable for the
resource or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices);
and,
 Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
The level within which the financial asset or liability is classified is determined based on the
lowest level of significant input to the fair value measurement.
For purposes of determining the market value at Level 1, a market is regarded as active if quoted
prices are readily and regularly available from an exchange, dealer, broker, industry group,
pricing service, or regulatory agency, and those prices represent actual and regularly occurring
market transactions on an arm’s length basis.
For investments which do not have quoted market price, the fair value is determined by using
generally acceptable pricing models and valuation techniques or by reference to the current
market of another instrument which is substantially the same after taking into account the related
credit risk of counterparties, or is calculated based on the expected cash flows of the underlying
net asset base of the instrument.
*SGVFS169521*
When the Group uses valuation technique, it maximizes the use of observable market data where
it is available and relies as little as possible on entity specific estimates. If all significant inputs
required to determine the fair value of an instrument are observable, the instrument is included in
Level 2. Otherwise, it is included in Level 3.
For assets and liabilities that are recognized at fair value in the statement of financial position on
a recurring basis, the Group determines whether transfers have occurred between Levels in the
hierarchy by reassessing categorization (based on the lowest level input that is significant to the
fair value measurement as a whole) at the end of each reporting period.
The financial assets and financial liabilities measured at fair value in the consolidated statements
of financial position are grouped into the fair value hierarchy as follows:
a) Financial instruments measured at fair value
Group
December 31, 2022
Level 1 Level 2 Level 3 Total
Resources
Debt securities = 6,996,559
P =–
P =–
P = 6,996,559
P
Equity securities 39,338 411,050 31,000 481,388
Derivative assets − 1,122,881 52,688 1,175,569
Trust fund assets − 60,109 − 60,109
Debt securities 79,489,027 − − 79,489,027
Equity securities − − 272,735 272,735
Liabilities
Derivative liabilities − 1,546,773 − 1,546,773
December 31, 2021

Resources
Debt securities P
=4,334,697 P30,343
= =–
P =4,365,040
P
Trust fund assets − 62,802 − 62,802
Debt securities 65,475,025 − − 65,475,025
Liabilities
Derivative liabilities − 750,009 − 750,009
Parent Bank
December 31, 2022
Resources
Debt securities = 6,996,559
P =–
P P–
= = 6,996,559
P
Equity securities − 411,050 − 411,050
Debt securities 79,421,431 − − 79,421,431
Liabilities
Derivative liabilities − 1,546,773 − 1,546,773
*SGVFS169521*
December 31, 2021

Resources
Debt securities P
=4,334,697 P30,343
= P–
= =4,365,040
P
Equity securities − 140,800 − 140,800
Debt securities 65,329,018 − − 65,329,018
Liabilities
Derivative liabilities − 750,009 − 750,009
b) Financial instruments measured at amortized cost and investment properties for which fair
value is disclosed
Group
December 31, 2022
Carrying Value Level 1 Level 2 Level 3 Total
Resources
Financial Assets
Financial assets at amortized cost P244,627,904
= P
= 219,164,614 P–
= =–
P P
= 219,164,614
Loans and other receivables 479,657,898 − − 473,119,154 473,119,154
Nonfinancial Assets
Investment properties 8,258,873 − − 16,767,610 16,767,610
Liabilities
Deposit liabilities 711,303,942 − – 711,341,525 711,341,525
Bills payable 132,846,789 – 127,994,547 − 127,994,547
Notes and bonds payable 51,644,325 – 48,770,253 − 48,770,253
December 31, 2021

Resources
Financial Assets
Financial assets at amortized cost =166,362,179
P P
=164,087,461 P–
= =–
P P
=164,087,461
Nonfinancial Assets
Liabilities
Bills payable 51,168,138 – 50,737,318 − 50,737,318
Parent Bank
December 31, 2022
Resources
Financial assets at amortized cost P235,400,671
= P
= 210,794,053 P–
= =–
P P
= 210,794,053
Liabilities
Bills payable 99,309,124 – 94,456,882 − 94,456,882
*SGVFS169521*
December 31, 2021

Resources
Financial assets at amortized cost =162,139,448
P P
=159,885,712 P–
= =–
P P
=159,885,712
Liabilities
Bills payable 28,577,774 – 28,146,954 − 28,146,954
There were neither transfers between Levels 1 and 2 nor changes in Level 3 instruments in both
years. Certain disclosures required for financial instruments measured at fair value and classified
as Level 3 are not presented as these financial instruments are comprised of derivative assets and
unquoted equity securities that are not material to the financial statements.
Below information provided about how the fair values of the Group’s classes of financial
instruments are determined.
(a) For Cash and other cash items, Due from BSP and other banks, Interbank loans receivable,
SPURRA (included under loans and other receivable) and Returned checks and other cash
items, and Other liabilities such as Manager’s checks, Bills purchased, Accounts payable,
Accrued interest payable, Payment orders payable and Due to Treasurer of the Philippines
Management considers that the carrying amounts approximate their fair value due to their
short-term nature. Accordingly, these are not presented in the tables above.
(b) Debt securities

Fair values of debt securities under Level 1, composed of government securities issued by the
Philippine government and other foreign governments and private debt securities, are
determined based on quoted prices at the close of business as appearing on Bloomberg. Fair
values of debt securities under Level 2 composed of government securities, determined based
on observable input prices of similar securities appearing on Bloomberg.
(c) Derivatives
The fair values of derivative financial instruments that are not quoted in an active market are
determined through valuation techniques using the net present value computation (see
Note 3). The inputs to these models are taken from observable markets where possible, but
where this is not feasible, a degree of judgment is required in establishing fair values.
(d) Equity securities

Instruments included in Level 1 comprise equity securities classified as financial assets at
FVTPL. These securities are valued based on their closing prices published by the Philippine
Stock Exchange.
Club shares classified as financial assets at FVTPL are included in Level 2 as their prices are
not derived from market considered as active due to lack of trading activities among market
participants at the end or close to the end of the reporting period.
*SGVFS169521*
Equity instruments included in Level 3 are UIC’s investment in unquoted equity securities
valued using the adjusted net asset method. The adjusted net asset method involves deriving
the fair value of the investee’s equity instruments by reference to the fair value of its assets
and liabilities. Adjustments in the fair value of the investee’s net assets, such as discount for
the lack of liquidity, were also considered in the valuation. The Level 3 unquoted equity
instruments are not material to the consolidated financial statements.
(e) Loans and receivables, Deposit liabilities and Bills payable

The Group maximizes the use of observable market data where it is available and rely as
little as possible on entity specific estimates. If all significant inputs required to determine
the fair value of an instrument are observable, the instrument is included in Level 2.
Otherwise, it is included in Level 3.
(f) Notes and bonds payable

Fair values of notes and bonds payable under Level 2 are determined based on quoted prices
at the close of business as appearing on PDEx and Bloomberg. These are classified as
Level 2 due to absence of an active market.
(g) Investment properties

The fair values of the Group’s investment properties are determined on the basis of the
appraisals performed by internal appraisers (for investment properties with values below
=5 million) and independent appraisal companies acceptable to the BSP (for investment
P
properties with fair values above =P5 million), with appropriate qualifications and recent
experience in the valuation of similar properties in the relevant locations. The valuation
process is conducted by the appraisers with respect to the determination of the inputs such as
the size, age, and condition of the land and buildings, and the comparable prices in the
corresponding property location.
In estimating the fair value of these properties, appraisal companies take into account the
market participant’s ability to generate economic benefits by using the assets in their highest
and best use. Based on management’s assessment, the best use of the Group’s non-financial
assets indicated above is their current use.
The fair values of investment properties are determined using the market data approach that
reflects observable and recent transaction prices for similar properties in nearby locations.
Under this approach, when sales prices of comparable property in close proximity are used in
the valuation of the subject property with no adjustment on the price, fair value is included in
Level 2. On the other hand, if the observable and recent prices of the reference properties
were adjusted for differences in key attributes such as property size, zoning, and
accessibility, the fair value will be the lower level of the hierarchy or Level 3. The most
significant input into this valuation approach is the price per square meter, hence, the higher
the price per square meter, the higher the fair value.
There has been no change to the valuation techniques used by the Group during the year for
its investment properties.
Offsetting Financial Assets and Financial Liabilities

Certain financial assets and financial liabilities of the Group and the Parent Bank with amounts
presented in the statements of financial position as of December 31, 2022 and 2021 are subject to
offsetting, enforceable master netting arrangements and similar agreements. However, there
were no financial assets and financial liabilities presented at net in the statements of financial
position.
*SGVFS169521*
Fair Value Measurement, Offsetting of Financial Assets and Financial Liabilities and
Cash and Balances with the BSP - 83 -
Presented below is the financial assets and financial liabilities subject to offsetting but the related
amounts are not set-off in the statements of financial position.
Group
December 31, 2022 December 31, 2021
Net amount Related amounts not set off Net amount Related amounts not set
presented in the statement of presented off in the statement of
in the statement financial position in the statement financial position
of financial Financial Collateral of financial Financial Collateral
position Instruments Received Net Exposure position Instruments Received Net Exposure
Financial assets
Derivative assets
Currency forwards P
=807,279 P
=379,452 P
=− P
=427,827 =468,358
P =344,744
P =−
P =123,614
P
Cross currency interest
rate swaps 315,602 21,550 − 294,052 547,012 88,973 − 458,039
Loans and receivables 23,948,338 − 23,948,338 − 23,841,824 − 23,841,824 −
Total financial assets P
=25,071,219 P
=401,002 P
=23,948,338 P
=721,879 =24,857,194
P =433,717
P =23,841,824
P =581,653
P
Financial liabilities
Derivative liabilities
Currency forwards P
=1,306,506 P
=379,452 P
=− P
=927,054 P260,235
= =344,744
P P−
= (P
=84,509)
Cross currency swaps 240,267 21,550 − 218,717 489,774 88,973 − 400,801
Deposit liabilities 652,651 331,529 − 321,122 585,863 421,082 − 164,781
Bills Payable 23,553,973 23,553,973 − − 23,420,742 23,420,742 − −
Total financial liabilities P
=25,753,397 P
=24,286,504 P
=− P
=1,466,893 =24,756,614
P =24,275,541
P =−
P =481,073
P
Parent Bank
December 31, 2022 December 31, 2021
Net amount Related amounts not set off Net amount Related amounts not set
presented in the statement of presented off in the statement of
in the statement financial position in the statement financial position
of financial Financial Collateral of financial Financial Collateral
position Instruments Received Net Exposure position Instruments Received Net Exposure
Financial assets
Derivative assets
Currency forwards P
=807,279 P
=379,452 P
=− P
=427,827 =468,358
P =344,744
P =−
P =123,614
P
Cross currency interest
rate swaps 315,602 21,550 − 294,052 547,012 88,973 − 458,039
Loans and receivables 14,966,340 − 14,966,340 − 15,946,079 − 15,946,079 −
Total financial assets P
=16,089,221 P
=401,002 P
=14,966,340 P
=721,879 =16,961,449
P =433,717
P =15,946,079
P =581,653
P
Financial liabilities
Derivative liabilities
Currency forwards P
=1,306,506 P
=379,452 P
=− P
=927,054 P260,235
= =344,744
P P−
= (P
=84,509)
Cross currency swaps 240,267 21,550 − 218,717 489,774 88,973 − 400,801
Deposit liabilities 610,047 331,529 − 278,518 564,035 404,783 − 159,252
Bills Payable 14,634,811 14,634,811 − − 15,541,296 15,541,296 − −
Total financial liabilities P
=16,791,631 P
=15,367,342 P
=− P
=1,424,289 =16,855,340
P =16,379,796
P =−
P =475,544
P
8. Cash and Balances with the BSP
These accounts are composed of the following as of December 31:
Group Parent Bank

2022 2021 2022 2021
Cash and other cash items =9,891,536
P =8,904,903
P =8,924,249
P =7,988,517
P
Due from BSP
Mandatory reserves P62,263,916
= P46,511,088
= =59,250,130
P P44,334,946
=
Non-mandatory reserves 32,346,392 56,896,858 7,337,991 23,143,443
=94,610,308
P =103,407,946
P =66,588,121
P =67,478,389
P
Cash consists primarily of funds in the form of Philippine currency notes and coins in the Group
and the Parent Bank’s vault and those in the possession of tellers, including ATMs. Other cash
items include cash items (other than currency and coins on hand) such as checks drawn on other
banks or other branches that were received after the Group and the Parent Bank’s clearing cut-off
time until the close of the regular banking hours.
*SGVFS169521*
Cash and Balances with the BSP and
Due from Other Banks - 84 -
Mandatory reserves represent the balance of the deposit account maintained with the BSP to meet
reserve requirements and to serve as clearing account for interbank claims (see Note 21). Due
from BSP bears annual interest rates ranging from 1.50% to 5.00% in 2022, from 1.50% to
2.00% in 2021, and from 1.50% to 4.30% in 2020, except for the amounts within the required
reserve as determined by the BSP. Total interest income on Due from BSP recognized by the
Group amounted to = P896,452, =
P665,311, and =P962,515, in 2022, 2021, and 2020, respectively,
while the total interest income on Due from BSP recognized by the Parent Bank amounted to
=487,778, =
P P325,236, and = P709,244, in 2022, 2021, and 2020, respectively.
Under Section 254 of the MORB, a bank shall keep its required reserves in the form of deposits
placed in the bank’s demand deposit account with the BSP. Section 254.1 of the MORB further
provides that such deposit account with the BSP is not considered as a regular current account as
drawings against such deposits shall be limited to: (a) settlement of obligation with the BSP, and
(b) withdrawals to meet cash requirements.
9. Due from Other Banks
The balance of this account consists of regular deposits with the following:
Group Parent Bank
2022 2021 2022 2021
Foreign banks =41,686,572
P =51,138,501
P =41,686,572
P =51,009,025
P
Local banks 4,553,392 3,119,964 576,957 299,958
=46,239,964
P =54,258,465
P =42,263,529
P =51,308,983
P
The breakdown of this account as to currency follows:

Group Parent Bank
2022 2021 2022 2021
U.S. dollars =39,093,926
P =48,927,115
P =38,909,437
P =48,946,007
P
Philippine pesos 4,362,703 3,262,944 570,757 294,570
Other currencies 2,783,335 2,068,406 2,783,335 2,068,406
=46,239,964
P =54,258,465
P =42,263,529
P =51,308,983
P
Annual interest rates on these deposits range from 0.00% to 2.30% in 2022, from 0.00% to 2.00%
in 2021, and from 0.00% to 3.00% in 2020. Total interest income on Due from other banks
earned by the Group amounted to = P103,736, =
P14,429, and =
P59,459 in 2022, 2021, and 2020,
respectively, while total interest income earned by the Parent Bank amounted to P
=97,199, =P7,634,
and P
=46,791 in 2022, 2021, and 2020, respectively.
Due from other banks is net of allowance for credit losses amounting to =
P18,447 and =
P32,407, as
of December 31, 2022 and 2021, respectively.
*SGVFS169521*
Interbank Loans Receivable and
Financial Assets at Fair Value through Profit or Loss - 85 -
10. Interbank Loans Receivable and Securities Purchased under Repurchase Agreements
Interbank loans receivable consists of foreign currency-denominated loans granted to other banks
with terms ranging from 1 to 68 days in 2022 and from 3 to 63 days in 2021. SPURRA
represents short-term placements with the BSP and private entities where the underlying
securities cannot be sold or re-pledged to parties other than the contracting party.
Interest income on interbank loans amounted to = P260,343, =

P23,256, and =
P95,857 in 2022, 2021,
and 2020, respectively, for the Group, and =
P259,183, =P22,170, and =
P95,451 in 2022, 2021, and
2020, respectively, for the Parent Bank. Interest income on SPURRA amounted to P =566,019,
=300,764, and =
P P444,275 in 2022, 2021, and 2020, respectively, for the Group, and =
P393,663,
=204,381, and =
P P273,324 in 2022, 2021, and 2020, respectively, for the Parent Bank.
Annual interest rates on interbank loans receivable range from 0.05% to 5.03% in 2022, from
0.01% to 2.00% in 2021, and 0.01% to 4.00% in 2020. SPURRA bears nominal annual interest
ranging from 0.00% to 5.23% in 2022, from 0.10% to 3.05% in 2021, and from 0.21% to 3.05%
in 2020.
11. Financial Assets at Fair Value through Profit or Loss
The Group’s and Parent Bank’s financial assets at FVTPL as of December 31, 2022 and 2021
consist of the following:
Group Parent Bank

2022 2021 2022 2021
Debt securities held for trading =6,996,559
P =4,365,040
P =6,996,559
P =4,365,040
P
Equity securities designated
at FVTPL 481,388 209,535 411,050 140,800
Derivative assets 1,175,569 1,065,430 1,175,569 1,065,430
=8,653,516
P =5,640,005
P =8,583,178
P =5,571,270
P
The breakdown of this account as to currency follows:
Group Parent Bank

2022 2021 2022 2021
U.S. dollars =3,348,270
P =4,514,447
P =3,348,270
P =4,514,447
P
Philippine pesos 5,304,291 1,125,261 5,233,953 1,056,526
Others 955 297 955 297
=8,653,516
P =5,640,005
P =8,583,178
P =5,571,270
P
The Group recognized fair value gains (losses) on financial assets at FVTPL amounting to
(P
=281,559), (P=440,044), and =P809,253 in 2022, 2021, and 2020, respectively, while the Parent
Bank recognized fair value gains (losses) on financial assets at FVTPL amounting to (P =282,465),
(P
=440,453), and P =811,217 in 2022, 2021, and 2020, respectively, and included as part of Gains
(losses) on trading and investment securities at FVTPL and FVOCI in the statement of income.
*SGVFS169521*
Financial Assets at Fair Value through Profit or Loss - 86 -
Interest income generated from these financial assets amounted to = P203,766, =

P244,587, and
=524,261 in 2022, 2021, and 2020, respectively, of both the Group and the Parent Bank. In
P
2022, annual interest rates on these financial assets range from 2.38% to 9.25% and from 1.38%
to 9.63% for securities denominated in Philippine peso and U.S. dollars, respectively. In 2021,
annual interest rates on these financial assets range from 2.38% to 4.62% and from 1.38% to
10.63% for securities denominated in Philippine peso and U.S. dollars, respectively. In 2020,
annual interest rates on these financial assets range from 1.38% to 5.88% and from 0.96% to
7.03% for securities denominated in Philippine peso and U.S. dollars, respectively.
Derivative instruments include warrants, foreign exchange forwards and swaps and cross-
currency interest rate swaps. These derivative instruments represent commitments to
purchase/sell/exchange foreign currency or bonds on a future date at an agreed price, exchange
rate and/or interest rates.
Equity securities include PSE listed securities, club shares and unquoted equity securities.
The aggregate contractual or notional amount of derivative financial instruments and the total fair
values of derivative financial assets and liabilities of the Group and the Parent Bank are set out
below.
December 31, 2022

Notional Fair Values
Liabilities
Amount Assets (Note 24)
Currency forwards
Bought P
=74,853,141 P
=288,247 P
=1,263,097
Sold 25,708,489 519,032 43,409
Cross currency interest rate swaps
Payer 3,751,347 15,823 234,509
Receiver 3,917,497 299,779 5,758
Warrants 5,017,950 52,688 –
P
=1,175,569 P
=1,546,773
December 31, 2021
Currency forwards
Bought P31,946,925
= = 466,591
P P36,806
=
Sold 22,392,884 1,767 223,429
Cross currency interest rate swaps
Payer 2,548,063 296,467 207,593
Receiver 2,540,260 250,545 282,181
Warrants 7,649,850 50,060 –
=1,065,430
P =750,009
P
*SGVFS169521*
Financial Assets at Amortized Cost - 87 -
12. Financial Assets at Amortized Cost
The Group’s and the Parent Bank’s financial assets at amortized cost as of December 31, 2022
and 2021 consist of the following:
Group Parent Bank

2022 2021 2022 2021
Government bonds and other
debt securities =242,659,492
P =163,748,924
P =233,522,259
P =159,616,193
P
Private bonds and commercial
papers 2,273,341 2,862,393 2,183,341 2,772,393
244,932,833 166,611,317 235,705,600 162,388,586
Allowance for impairment
(Note 20) (304,929) (249,138) (304,929) (249,138)
=244,627,904
P =166,362,179
P =235,400,671
P =162,139,448
P
Investment securities of both the Group and the Parent Bank with an aggregate principal amount
of P
=103,659,400 and = P23,664,920 of December 31, 2022 and 2021, respectively, were pledged as
collaterals for bills payable under repurchase agreements (see Note 22).
The breakdown of this account as to currency as of December 31, 2022 and 2021 follows:
Group Parent Bank

2022 2021 2022 2021
Philippine pesos =211,267,150
P =133,898,721
P =202,039,917
P =129,675,990
P
U.S. dollars 31,492,475 30,644,377 31,492,475 30,644,377
Others 1,868,279 1,819,081 1,868,279 1,819,081
=244,627,904
P =166,362,179
P =235,400,671
P =162,139,448
P
Financial assets at amortized cost denominated in Philippine pesos have annual fixed interest
rates ranging from 2.38% to 18.25% in 2022, from 1.03% to 18.25% in 2021, and from 1.69% to
18.25% in 2020, while financial assets at amortized cost denominated in U.S. dollars and Euros
have annual fixed interest rates ranging from 3.25% to 9.5% in 2022 and 2021, and from 2.31%
to 7.11% in 2020. These bonds have remaining maturities of 1 year to 31 years as at December
31, 2022 and 2021 and 1 year to 29 years as at December 31, 2020.
Interest income generated from these financial assets, including amortization of premium or
discount, amounted to =P9,731,453, P=5,865,798, and =
P7,202,846 in 2022, 2021, and 2020,
respectively, by the Group, and =P9,330,858, P
=5,777,352, and =P7,061,489 in 2022, 2021, and
2020, respectively, by the Parent Bank. This is shown as part of Interest income on investment
securities at amortized cost and FVOCI account in the statement of income.
Government bonds with aggregate face value of = P1.2 billion and =

P1.0 billion as of
December 31, 2022, and 2021, respectively, are deposited with BSP as security for the Bank’s
faithful compliance with its fiduciary obligations (see Note 31).
*SGVFS169521*
Financial Assets at Amortized Cost and
Financial Assets at Fair Value Through Other Comprehensive Income - 88 -
The Parent Bank sold investment securities classified as Investment securities at amortized cost
with carrying amount of = P1.7 billion, P
=47.4 billion, and P
=57.8 billion in 2022, 2021, and 2020,
respectively, resulting in gains totaling =
P0.10 billion, =
P8.45 billion, and P
=5.11 billion in 2022,
2021, and 2020, respectively (see Note 3).
Reclassification of Financial assets Measured at Fair Value Through Other Comprehensive

Income to Financial Assets at Amortized Cost for prudential reporting
In response to the effects on the financial markets of the COVID-19 pandemic, the BSP has
issued BSP Memorandum No. M-2020-022 dated April 8, 2020 allowing BSP-supervised
financial institutions to reclassify its investments in debt securities that are booked under a fair
value category to amortized cost category. For valuation purposes, under the BSP relief, banks
can choose until April 30, 2020 to reclassify its debt securities using any value date from
March 1, 2020 to April 30, 2020; and choose to reclassify subsequent to April 30, 2020 to
September 30, 2020 using the value date as of the date when the reclassification is made.
In 2020, the Bank availed of the BSP relief for prudential reporting purposes and reclassified the
Bank’s FCDU’s debt financial assets at FVTPL and at FVOCI to Financial assets at amortized
cost classification with fair market values of = P5.6 billion and P
=6.0 billion, respectively, using
March 5, 2020 as valuation date. To maintain full compliance with PFRS, the Bank retained the
original classification of its debt financial assets consistent with the requirements of PFRS 9 in its
general purpose financial statements prepared under PFRS.
As of December 31, 2020, the amortized cost and fair value of the outstanding reclassified
securities for prudential reporting amounted to =
P5.66 billion and =
P5.75 billion, respectively.
Had these securities not been reclassified from FVTPL and FVOCI to Financial assets at
amortized cost for prudential reporting purposes, the net unrealized gain recognized in profit or
loss and OCI for the year ended December 31, 2020 would have increased by = P69.52 million and
=22.09 million, respectively.
P
Under BSP Memorandum No. M-2021-011, the BSP-supervised financial institution that intends
to revert to PFRS 9 for prudential reporting purposes shall classify its outstanding debt securities
as of the start of the financial reporting period when such a decision was made. On January 1,
2021, the Bank decided to revert to PFRS 9 for prudential reporting purposes and accordingly,
reversed the reclassification for prudential reporting effective January 1, 2021.
13. Financial Assets at Fair Value Through Other Comprehensive Income
The Group’s and the Parent Bank’s financial assets at FVOCI as of December 31, 2022 and 2021
Group Parent Bank

2022 2021 2022 2021
Debt securities:
Government bonds =62,104,853
P =47,097,138
P =62,095,606
P =47,046,877
P
Private bonds and
commercial papers 17,384,174 18,377,887 17,325,825 18,282,141
=79,761,762
P =65,672,610
P =79,467,678
P =65,370,691
P
*SGVFS169521*
Financial Assets at Fair Value Through Other Comprehensive Income - 89 -
The breakdown of this account as to currency as of December 31, 2022 and 2021 follows:
Group Parent Bank

2022 2021 2022 2021
U.S. dollars =56,151,879
P =46,793,028
P =55,925,392
P =46,637,115
P
Philippine pesos 23,609,883 18,879,582 23,542,286 18,733,576
=79,761,762
P =65,672,610
P =79,467,678
P =65,370,691
P
The Group has designated the above equity securities as at FVOCI because they are held for
long-term investments and are neither held-for-trading nor designated as at FVTPL. Unquoted
equity securities pertain to golf club shares and investments in non-marketable equity securities.
Debt securities denominated in Philippine pesos have annual interest rates ranging from 2.88% to
9.25% for 2022, from 2.88% to 6.88% for 2021, and from 3.70% to 5.33% for 2020, while debt
securities denominated in U.S. dollars have annual interest rates ranging from 1.25% to 9.63% in
2022, from 1.13% to 9.63% in 2021, and from 1.03% to 8.43% in 2020. Interest income,
including amortization of premium or discount, amounted to = P2,758,288 and =P2,752,764 in 2022
for the Group and Parent Bank, respectively, =P1,840,975 and = P1,833,323 in 2021 for the Group
and Parent Bank, respectively, and P
=881,817 and P =875,707 in 2020 for the Group and Parent
Bank, respectively, and is shown as part of Interest income on investment securities at amortized
cost and FVOCI account in the statement of income.
In 2022, 2021 and 2020, the Group and the Parent Bank recognized gains from the sale of
investments securities at FVOCI amounting to =
P0.10 billion, =
P0.66 billion, and =
P3.02 billion,
respectively. The amounts are included under Gains on trading and investments securities at
FVTPL and FVOCI in the statement of income.
As of December 31, 2022 and 2021, allowance for credit losses credited against other
comprehensive income amounted to =P12,287 and P
=12,031, respectively.
*SGVFS169521*
Loans and Other Receivables - 90 -
14. Loans and Other Receivables
The Group’s and the Parent Bank’s loans and other receivables as of December 31, 2022 and
2021 consist of the following:
Group Parent Bank

2022 2021 2022 2021
Receivables from customers:
Loans and discounts =459,972,123
P =325,222,919
P =372,906,505
P =265,140,532
P
Customers’ liabilities under
acceptances and trust receipts 11,616,859 11,051,652 11,616,859 11,051,652
Bills purchased 3,180,968 458,312 3,180,968 458,312
Accrued interest receivable 5,725,612 3,155,283 2,892,184 2,323,363
480,495,562 339,888,166 390,596,516 278,973,859
Unearned discounts (2,204,459) (1,417,089) (204,265) (158,506)
(Note 20) (14,038,685) (13,435,022) (9,177,037) (10,035,885)
464,252,418 325,036,055 381,215,214 268,779,468
Other receivables:
Accounts receivable 9,316,601 7,106,075 6,718,338 2,742,044
Accrued interest receivable 4,244,524 3,186,024 4,063,998 3,072,794
Sales contracts receivable 2,319,031 1,518,579 2,215,959 1,446,756
Unquoted debt securities
classified as loans – 1,538 – –
Installment contracts receivable 2,188 3,451 – –
15,882,344 11,815,667 12,998,295 7,261,594
(Note 20) (476,864) (497,833) (447,915) (464,156)
15,405,480 11,317,834 12,550,380 6,797,438
=479,657,898
P =336,353,889
P =393,765,594
P =275,576,906
P
Restructured loans amounted toP =2,766,595 and = P1,307,006 as of December 31, 2022 and 2021,
respectively, for the Group, and =
P2,733,513 and = P1,250,276 as of December 31, 2022 and 2021,
respectively, for the Parent Bank. Interest income on these restructured loans amounted to
=136,650, =
P P38,733, and = P9,067 in 2022, 2021, and 2020, respectively, for the Group, and
=136,129, =
P P25,189, and = P6,126 in 2022, 2021, and 2020, respectively, for the Parent Bank.
The maturity profile of loans and other receivables (net of unearned discounts) follows:
Group Parent Bank

2022 2021 2022 2021
Less than one year =206,542,153
P =102,745,416
P =197,799,858
P =89,910,665
P
One year to less than five years 169,116,975 147,755,010 97,237,602 97,636,022
Beyond five years 118,514,319 99,786,318 108,353,086 98,530,260
=494,173,447
P =350,286,744
P =403,390,546
P =286,076,947
P
Loans and other receivables bear annual interest ranging from 4.25% to 14.00% in 2022, and
from 4% to 14% in 2021 and 2020.
*SGVFS169521*
Loans and Other Receivables and
Investments in Subsidiaries and Associates - 91 -
The breakdown of loans (receivable from customers excluding accrued interest receivable) as to
type of interest rate follows:
Group Parent Bank

2022 2021 2022 2021
Variable interest rates =274,129,500
P =248,928,907
P =274,129,500
P =248,924,378
P
Fixed interest rates 200,640,450 87,803,976 113,574,832 27,726,118
=474,769,950
P =336,732,883
P =387,704,332
P =276,650,496
P
The amounts of interest income per type of loans and receivables for each reporting period are as
follows:
Group
2022 2021 2020
Receivables from customers =32,404,519
P =24,686,931
P =28,287,521
P
Other receivables:
Sales contracts receivable 141,615 101,402 118,611
Installment contracts receivable 286 318 514
Others 3,458,294 2,583,798 18
=36,004,714
P =27,372,449
P =28,406,664
P
Parent Bank
2022 2021 2020
Receivables from customers =23,773,696
P =17,402,061
P =19,689,313
P
Sales contracts receivable 133,692 95,200 113,383
=23,907,388
P =17,497,261
P =19,802,696
P
15. Investments in Subsidiaries and Associates
Investment in Subsidiaries
This account in the Parent Bank’s financial statements pertains to investments in the following
subsidiaries, which are accounted for using the equity method:
% Interest 2022 2021

Acquisition costs:
CSB 99.79% P6,746,861
= =6,746,861
P
CFSI (Note 1) 100% 5,073,025 –
UnionDigital (Note 1) 100% 3,000,000 1,000,000
UBX 100% 1,100,000 1,100,000
UIC 100% 924,861 924,861
FUPI 100% 290,002 290,002
UBPSI 100% 5,000 5,000
UDC 100% 3,125 3,125
=17,142,874
P =10,069,849
P
*SGVFS169521*
The movement of investments in subsidiaries is shown below:
2022 2021 2020

Acquisition costs:
Beginning balances =10,069,849
P P8,573,349
= =7,870,847
P
Additional investments (Note 1) 7,073,025 1,500,000 702,502
Others − (3,500) −
17,142,874 10,069,849 8,573,349
Accumulated equity in total comprehensive
income:
Beginning balances 13,013,106 13,294,638 12,652,786
Share in net profit (Note 28)* 1,712,086 1,173,016 953,082
Dividends (188,000) (1,496,811) −
Impairment on investment in FUPI
(Note 28) − − (290,002)
Share in other comprehensive
income (loss) (Note 29) 82,778 38,774 (21,228)
Others (4,384) 3,489 −
14,615,586 13,013,106 13,294,638
Net investment in subsidiaries =31,758,460
P =23,082,955
P =21,867,987
P
*The share in net profit for CSB in 2021 and 2020 is net of goodwill impairment charge of =
P 529.6 million and
=
P223.2 million, respectively.
The Parent Bank’s direct subsidiaries are all incorporated in the Philippines. The principal place
of business of these subsidiaries is in Metro Manila, Philippines except for CSB, which has its
principal place of operations in Cebu, Philippines.
Acquisition of shares of CFSI

Citicorp Financial Services and Insurance Brokerage Philippines, Inc. is a domestic corporation
organized to engage in the business of marketing insurance products and to act as a broker of
debt and equity securities of every kind and description. CFSI is engaged in the brokerage of debt
securities, third-party investment funds, and insurance products. On December 23, 2021, the
CFSI’s shareholders sold to Union Bank of the Philippines their respective ownership totaling to
100% of the shares as part of the acquisition, which was completed on August 1, 2022
(see Note 1).
Purchase of preferred shares issued by FUPI
In October 2020, the Parent Bank subscribed to FUPI’s non-voting, non-cumulative and
redeemable preferred shares for a total consideration of =
P290.0 million. The subscription was
used to support FUPI in meeting its maturing pre-need plans during 2020. As of December 31,
2020, the Parent Bank assessed that the preferred shares will not be redeemed or settled in the
foreseeable future, as FUPI will not be generating additional income or revenues moving
forward. In 2020, the Parent Bank provided a full valuation allowance of =P290.0 million,
presented under Miscellaneous expense (see Note 28). This transaction is eliminated in
consolidation and has no impact on the consolidated financial statements.
Acquisition of Bangko Kabayan

In February 2019, CSB and UIC acquired 70% ownership, with CSB owning 49% and UIC
owning 21% (See Note 1). For convenience purposes, the Group used March 31, 2020 as the
date of business combination.
*SGVFS169521*
The acquisition resulted in goodwill as follows (amounts in thousands):

P
Share in fair value of net assets acquired:
Final fair values of net assets acquired 808,009
Less: Proportionate share of non-controlling
interest 242,403 565,606
Final Goodwill =116,139
P
The goodwill arising from the acquisition is attributed to expected synergies in the operations of
the Group and Bangko Kabayan and the planned expansion of network to rural areas and extend
the digital products offered by the Parent Bank. None of the goodwill recognized is expected to
be deductible for income tax purposes.
The fair value of the loans and receivables acquired as part of the business combination
amounted to = P1.95 billion, with gross contractual amount of =
P2.04 billion. Net cash outflow
related to the acquisition of Bangko Kabayan amounted to = P38.09 million, net of cash acquired.
Acquisition of PBI
On January 5, 2018, CSB and UIC acquired 75% ownership of PBI (see Note 1).
The acquisition resulted in a gain on bargain purchase as follows (amounts in thousands):

P
Share in fair value of net assets acquired:
Final fair values of net assets acquired =111,054
P
Less: Proportionate share of non-controlling
interest 27,763 83,291
Gain on Bargain Purchase (Note 28) =25,291
P
The fair value of the loans and receivables acquired as part of the business combination
amounted to = P252.41 million, with gross contractual amount of P =360.56 million. Net cash inflow
related to the acquisition of PBI amounted to P
=140.47 million, net of cash acquired.
UBX and UBX SG Investment Transactions

On November 27, 2020, the Parent Bank’s BOD approved the additional capital infusion of
=500 million into UBX. The capital infusion was approved by the BSP on February 15, 2021.
P
The additional capital is intended to grow UBX’ business operations and venture platforms.
Investments in Pacific Payments Pte. Ltd

On February 21, 2020, UBX SG acquired 25% of Pacific Payments Pte. Ltd. (PPPL)’s
outstanding capital for a total consideration amounting to $1.6 million (P
=50.0 million). PPPL is a
holding company that was incorporated in Singapore in November 2014.
On June 18, 2021, UBX SG sold its 25% stake in Pacific Payments Pte. Ltd.’s for a total
consideration of $5.4 million (P
=262.4 million) resulting in a gain on sale of investment in
associate amounting to $3 million (P
=156.0 million). UBX SG will use the proceeds to pursue
growth and investments opportunities.
*SGVFS169521*
Investments in Integra Partners’ Fund

On January 31, 2021, UBX SG subscribed $2.5 million in Integra Partners’ Fund II as a Limited
Partner. Out of the $2.5 million subscribed, UBX SG has paid $286 thousands (P =13.7 million) or
around 10% ownership. Integra Partners is a venture Capital (VC) firm based out of Singapore
and is considered one of SE Asia’s premier Fintech and Healthtech VC funds. UBX SG’s
investment in the fund indicates its commitment to invest in the fintech space and drive
healthcare and financial inclusion in Southeast Asia. Additionally, the partnership further
cements the existing strategic relationship with Integra Partners.
Investments in CC Mobile Financial Services Philippines, Inc.

On September 6, 2019, UBX acquired 35% of CC Mobile Financial Services Philippines, Inc.
(CCPH) outstanding capital stock for a total consideration amounting to = P50.0 million. CCPH
was incorporated in the Philippines to engage in the business of a financing company by
extending credit facilities, by discounting or factoring commercial paper or accounts receivable,
by sales finance, by buying and selling contracts, leases, chattel mortgages, or other evidences of
indebtedness, or by financial or operating leasing of movable as well as immovable property, and
real estate mortgages, without engaging in quasi-banking functions or trust operations. CCPH is
accounted for as an investment in associate in the Group’s financial statements.
On June 11, 2021, UBX sold its 35% equity ownership in CC Mobile Financial Services
Philippines, Inc. to Fintech Platform Ventures Pte Ltd. (FPV) pursuant to a corporate
restructuring of the Finscore Group intended to consolidate the ownership of all its subsidiaries
under one Singaporean holding company – FPV. UBX PH has agreed to assign the receivable
from FPV arising from the sale to UBX SG. In exchange, UBX SG issued 64,760 Class A
Redeemable Preferred Shares (RPS) (“UBX shares”) at an issue price of $1.04 million
(P
=53.03 million) to UBX PH. UBX SG has, in turn, entered into a Subscription and
Shareholders’ Agreement dated June 4, 2021 wherein it subscribed to 1,350,000 shares (31.98%
equity ownership) in FPV, free from any encumbrances, for the aggregate subscription
consideration of $1.39 million (P=70.88 million). As of December 31, 2021, UBX SG has 31.98%
ownership in FPV, which in turn has 100% ownership in CC Mobile Financial Services
Philippines, Inc.
Investments with NYK Ventures Pte Ltd.

On August 2, 2021, UBX SG subscribed to 811 non-cumulative, non-convertible preference
shares of NYK Ventures Pte Ltd. (NYK) at a price of $317.79 per share or a total of
$0.26 million (P
=12.80 million) in addition to its exiting interest in NYK. This additional
subscription was an exercise of UBX SG’s pro rata rights to maintain an equity stake in NYK’s
wholly-owned subsidiary, PDAX, Inc. of 2.58%.
As of December 31, 2022 and 2021, the Group has investment in associates with aggregate
carrying amounts of P
=123,396 and =P142,355, respectively. The aggregate share in losses on
these associates amounted to =
P30,125, =
P14,186, and =
P3,665 in 2022, 2021, and 2020,
respectively.
Subscription was an exercise of UBX SG’s pro rata rights to maintain an equity stake in NYK’s
wholly-owned subsidiary, PDAX, Inc. of 2.58%.
*SGVFS169521*
Investments in Subsidiaries and Associates and
Bank Premises, Furniture, Fixtures and Equipment - 95 -
As of December 31, 2022 and 2021, the Group has investment in associates with aggregate
carrying amounts of P
=123,396 and =P142,355, respectively. The aggregate share in losses on
these associates amounted to =
P30,125, =
P14,186, and =
P3,665 in 2022, 2021, and 2020,
respectively.
Summarized Financial Information

The following table presents the financial information for CSB, UnionDigital, PETNET,
UBX, CFSI, UIC, Bangko Kabayan, FAIR Bank, and PBI as of and for the years ended
Net Profit
Assets Liabilities Revenues (Loss)
2022
CSB P
=131,980,351 P
=112,633,815 P
=13,335,969 P
=2,649,777
UnionDigital 12,908,553 10,357,201 408,801 (426,016)
PETNET 1,608,759 439,900 1,032,183 235,901
UBX 1,087,251 392,437 280,430 (220,944)
CFSI 1,511,034 204,336 295,014 117,317
UIC 1,145,003 70,566 173,615 88,894
Bangko Kabayan 3,597,388 3,027,477 435,462 76,853
FAIR Bank 299,029 226,998 72,518 (15,098)
PBI 180,755 185,658 45,098 (14,920)
Net Profit
Assets Liabilities Revenues (Loss)
2021
CSB =119,142,549
P =102,472,266
P =10,748,877
P =1,142,631
P
UnionDigital 1,000,000 29,000 − (29,000)
PETNET 1,323,318 221,018 762,178 125,231
UBX 1,034,660 170,004 338,857 64,032
UIC 1,134,027 128,363 134,682 53,708
Bangko Kabayan 3,357,782 2,870,298 336,203 46,706
FAIR Bank 359,699 244,493 70,863 (28,314)
PBI 243,553 289,492 70,698 (114,293)
16. Bank Premises, Furniture, Fixtures and Equipment
The gross carrying amounts and accumulated depreciation and amortization of bank premises,
furniture, fixtures and equipment as of December 31, 2022 and 2021 are shown below.
Group
Furniture, Leasehold
Fixtures and Right-of-use Rights and
Land Buildings Equipment Asset Improvements Total
December 31, 2022
Cost = 850,660
P = 5,070,587
P = 5,314,628
P = 3,416,378
P = 1,852,361
P P
= 16,504,614
Accumulated depreciation and
amortization − (929,215) (3,477,933) (2,112,457) (1,278,390) (7,797,995)
Net carrying amounts = 850,660
P = 4,141,372
P P1,836,695
= P1,303,921
= = 573,971
P P8,706,619
=
December 31, 2021

Cost =850,660
P =3,061,143
P =4,946,472
P =2,817,848
P =1,748,553
P =13,424,676
P
amortization − (814,284) (3,095,504) (1,623,221) (1,125,896) (6,658,905)
Net carrying amounts =850,660
P =2,246,859
P P1,850,968
= P1,194,627
= =622,657
P P6,765,771
=
*SGVFS169521*
Parent Bank
Fixtures and Right-of-use Rights and
Land Buildings Equipment Asset Improvements Total
December 31, 2022
Cost = 248,301
P = 4,574,015
P = 3,878,962
P = 2,751,126
P = 904,476
P = 12,356,880
P
amortization – (671,565) (2,348,595) (1,682,023) (418,663) (5,120,846)
Net carrying amounts = 248,301
P = 3,902,450
P P1,530,367
= P1,069,103
= P485,813
= P7,236,034
=
December 31, 2021

Cost =248,301
P =2,621,552
P =3,650,598
P =2,177,921
P =824,212
P =9,522,584
P
amortization – (596,994) (2,027,948) (1,221,229) (340,087) (4,186,258)
Net carrying amounts =248,301
P =2,024,558
P P1,622,650
= =956,692
P P484,125
= P5,336,326
=
A reconciliation of the carrying amounts at the beginning and end of 2022 and 2021 of this
account (including right-of-use assets) is shown below:
Group
Fixtures and Right-of-Use Rights and
Land Buildings Equipment Assets Improvements Total
Balances at January 1, 2022, net of
accumulated depreciation and
amortization = 850,660
P = 2,246,859
P = 1,850,968
P = 1,194,627
P = 622,657
P P6,765,771
=
Additions – 15,282 454,858 523,806 81,451 1,075,397
Disposals – – (24,849) – – (24,849)
Reclassifications/adjustments – 23,476 (2,784) 136,607 (23,309) 133,990
Depreciation and amortization
charges for the year – (96,708) (494,052) (620,499) (152,494) (1,363,753)
(Note 1) – 1,952,463 52,554 69,380 45,666 2,120,063
Balances at December 31, 2022,
net of accumulated
depreciation and amortization = 850,660
P = 4,141,372
P = 1,836,695
P = 1,303,921
P = 573,971
P = 8,706,619
P
Group
amortization =859,082
P =2,331,896
P =1,931,401
P =1,126,620
P =645,769
P =6,894,768
P
Additions – 2,202 400,807 666,029 102,596 1,171,634
Disposals (8,422) (9,833) (19,024) – – (37,279)
Reclassifications/adjustments – (12,761) (4,003) (385) (572) (17,721)
net of accumulated
depreciation and amortization =850,660
P =2,246,859
P =1,850,968
P =1,194,627
P =622,657
P =6,765,771
P
*SGVFS169521*
Parent Bank
amortization = 248,301
P = 2,024,558
P = 1,622,650
P P956,692
= = 484,125
P = 5,336,326
P
Additions – – 273,418 514,000 34,597 822,015
Disposals – – (17,318) – – (17,318)
Reclassifications/adjustments – – (1,393) (250) – (1,643)
(Note 1) – 1,952,463 52,344 63,195 45,666 2,113,668
net of accumulated
depreciation and amortization = 248,301
P = 3,902,450
P = 1,530,367
P = 1,069,103
P = 485,813
P = 7,236,034
P

amortization =248,301
P =2,084,184
P =1,732,358
P =935,946
P =524,577
P =5,525,366
P
Additions – – 285,567 431,171 31,824 748,562
Disposals – – (13,643) – – (13,643)
Reclassifications/adjustments – (15,062) – 170 – (14,892)
charges for the year – (44,564) (381,632) (410,595) (72,276) (909,067)
net of accumulated
depreciation and amortization =248,301
P =2,024,558
P =1,622,650
P =956,692
P =484,125
P =5,336,326
P
The Group has leases for branch offices, parking lots, stalls for specific events, signage and
computer equipment. With the exception of short-term leases and leases of low-value underlying
assets, each lease is reflected in the consolidated statement of financial position as a ROU asset and
a lease liability.
Generally, the Group is restricted from assigning and subleasing the leased assets. The lease
contracts are cancellable upon mutual agreement of the parties or renewable under certain terms
and conditions. Various lease contracts include escalation clauses, most of which bear an annual
rent increase of 5% to 10%. As of December 31, 2022 and 2021, the Group has neither a
contingent rent payable nor an asset restoration obligation in relation with these lease agreements.
The Group’s leasing activities qualified to recognize ROU assets mainly comprise of branch offices
and parking lots with remaining lease terms ranging from 1 to 10 years.
The details of depreciation and amortization in the consolidated statements of income follow:
Group
2022 2021 2020
Bank premises, furniture, fixtures and equipment* P
=743,254 P647,994
= P658,806
=
Investment properties (Note 17) 370,290 406,421 358,351
Computer software (Note 19) 349,683 405,150 286,680
Foreclosed machineries and chattel 144,646 164,114 103,063
P
=1,607,873 =1,623,679
P =1,406,900
P
*Excluding depreciation of ROU asset presented in Occupancy amounting to =
P 620,499 and =
P 597,637 in 2022 and 2021, respectively.
*SGVFS169521*
Bank Premises, Furniture, Fixtures and Equipment and
Investment Properties - 98 -
Parent Bank
2022 2021 2020
Bank premises, furniture, fixtures and equipment* P
=552,480 =498,472
P 499,189
Investment properties (Note 17) 358,600 394,241 350,290
Computer software (Note 19) 252,365 253,745 159,428
Foreclosed machineries and chattel 4,119 – –
P
=1,167,564 =1,146,458
P =1,008,907
P
*Excluding depreciation of ROU asset presented in Occupancy amounting to =
P 464,534 and =
P 410,595 in 2022 and 2021, respectively.
In 2022, 2021, and 2020 depreciation charges amounted to = P620.50 million, P

=597.64 million, and
=521.52 million, respectively, for the ROU asset of the Group and =
P P464.53 million,
=410.60 million, and P
P =438.31 million, respectively, for ROU of the Parent Bank. This is shown as
part of Occupancy in the consolidated and parent bank statements of income.
Under BSP rules, investments in bank premises, furniture, fixtures and equipment should not
exceed 50% of the Parent Bank’s unimpaired capital. As of December 31, 2022 and 2021, the
Parent Bank has satisfactorily complied with this requirement.
17. Investment Properties
The Group’s and the Parent Bank’s investment properties include several parcels of land and
buildings held for rentals and foreclosed properties. The composition of and movements in this
account under the cost model are shown below.
Group Parent
As at December 31 As at December 31
2022 2021 2022 2021
Cost = 11,432,533
P =11,700,174
P = 10,129,917
P =10,288,745
P
Accumulated depreciation (3,101,955) (2,930,403) (2,934,165) (2,756,443)
Accumulated impairment loss (71,705) (96,427) (71,703) (96,425)
Net carrying amounts = 8,258,873
P =8,673,344
P = 7,124,049
P =7,435,877
P
The movements in the Group’s and the Parent Bank’s investment properties are shown below.
Group
2022
Building Held Foreclosed
for Lease Properties Total
Cost
Balances at January 1 P
=2,533,566 P
=9,166,608 P
=11,700,174
Reclassifications / adjustments − (41,189) (41,189)
Additions − 842,881 842,881
Disposals − (1,069,333) (1,069,333)
Balances at December 31 2,533,566 8,898,967 11,432,533
Accumulated depreciation and amortization
Balances at January 1 736,553 2,193,850 2,930,403
Reclassifications / adjustments 434 (9,042) (8,608)
Depreciation 52,738 317,552 370,290
Disposals − (190,130) (190,130)
Balances at December 31 789,725 2,312,230 3,101,955
Accumulated impairment losses
Balance at January 1 − 96,427 96,427
Reversals on provision for impairment − (24,722) (24,722)
Balances at December 31 − 71,705 71,705
Net book values P
=1,743,841 P
=6,515,032 P
=8,258,873
*SGVFS169521*
Investment Properties - 99 -
Group
2021
Cost
Balances at January 1 =2,506,566
P =9,217,408
P =11,723,974
P
Reclassifications / adjustments − (785) (785)
Additions 27,000 303,167 330,167
Disposals − (353,182) (353,182)
Reclassifications / adjustments (20) (66) (86)
Depreciation 52,535 353,886 406,421
Disposals − (116,521) (116,521)
Balance at January 1 − 161,019 161,019
Reclassifications / adjustments − 57 57
Net book values =1,797,013
P =6,876,331
P =8,673,344
P
Parent Bank
2022
Cost
Balances at January 1 = 2,198,110
P = 8,090,635
P = 10,288,745
P
Reclassification − (1,224) (1,224)
Additions − 831,156 831,156
Disposals − (988,760) (988,760)
Depreciation 45,854 312,746 358,600
Disposals − (180,878) (180,878)
Balances at January 1 and December 31 − 96,425 96,425
Net book values = 1,548,829
P = 5,575,220
P = 7,124,049
P
Parent Bank
2021
Cost
Balances at January 1 =2,171,110
P =8,128,628
P =10,299,738
P
Additions 27,000 261,438 288,438
Disposals − (299,431) (299,431)
Depreciation 45,631 348,610 394,241
Disposals − (113,915) (113,915)
Balances at January 1 and December 31 − 161,074 161,074
Net book values =1,594,683
P =5,841,194
P =7,435,877
P
*SGVFS169521*
Investment Properties and
Goodwill - 100 -
Real property taxes related to these investment properties paid by the Group and recognized as
expense in 2022, 2021, and 2020 totaled = P41,242, =
P33,676, and =P44,653, respectively, and are
presented as part of Taxes and licenses account under Other expenses in the statements of
income.
Rent income earned by the Group on its investment properties under operating leases amounted
to =
P209,600, =
P108,047, and =P142,033, in 2022, 2021, and 2020, respectively, and is included as
part of Rental account under Miscellaneous income in the statements of income (see Note 28).
The gain from foreclosure of loan collaterals, presented as part of Miscellaneous income in the
statements of income (see Note 28), amounted to = P466.39 million, P
=135.31 million, and
=153.88 million, in 2022, 2021, and 2020, respectively, for the Group and the Parent Bank.
P
The gain (loss) on disposal of foreclosed properties, presented as part of Miscellaneous income in
the statements of income (see Note 28), amounted to = P1,224.04 million, (P
=43.69 million), and
=229.15 million, in 2022, 2021, and 2020, respectively, for the Group, and P
P =1,193.00 million,
=207.36 million, and =
P P195.47 million in 2022, 2021, and 2020, respectively, for the Parent Bank.
Information about the fair value of investment properties is presented in Note 7.
18. Goodwill
Goodwill represents the excess of the acquisition cost over the fair value arising from the
acquisitions of (a) former iBank’s in April 2006; (b) CSB in January 2013, (c) PR Savings Bank
by CSB in June 2018, (d) PETNET in December 2018, (e) Bangko Kabayan in March 2020, and
(f) Citigroup Inc.’s consumer banking business in the Philippines in August 2022 (see Note 1).
For the 2022 acquisition of Citigroup’s consumer banking business, the Group has provisionally
determined the fair value of assets and liabilities acquired and the related goodwill, including
determining any goodwill that is expected to be deductible for income tax purposes.
For impairment testing purposes, the goodwill of the Group acquired through business
combinations is allocated to the following CGUs:
a. With respect to acquisition of iBank, to the Parent Bank’s Retail Banking and Parent Bank’s
Corporate and Commercial Banking;
b. With respect to the goodwill from the acquisition of CSB and PR Savings Bank, to CSB’s
DepEd salary loans business and motorcycle loans business, respectively;
c. With respect to the goodwill from the acquisition of PETNET, the separate cash generating
unit of PETNET at entity level;
d. With respect to the goodwill from the acquisition of Bangko Kabayan, the separate cash
generating unit of Bangko Kabayan at entity level; and,
e. With respect to the goodwill from the acquisition of Citigroup Inc.’s consumer banking
business in the Philippines, the separate cash generating unit of (i) a group of CGU within the
Consumer Banking Group; and (ii) CFSI at entity level
*SGVFS169521*
Goodwill - 101 -
The following presents the movement of goodwill of the Group for 2022 and 2021:
Group
2022 2021
Beginning balance P
=14,818,932 P15,348,531
=
Acquisition of business and subsidiary (Note 1) 47,491,355 −
Impairment during the year (Note 28) − (529,599)
Ending balance P
=62,310,287 =14,818,932
P
The goodwill of the Group is allocated to the following CGUs:
Group Parent Bank

2022 2021 2022 2021
Parent Bank
Parent Bank’s Consumer Banking
Business P
=43,772,364 =−
P P
=43,772,364 =−
P
Parent Bank’s Corporate and Commercial
Banking 3,208,998 3,208,998 3,208,998 3,208,998
Parent Bank’s Retail Banking 4,677,900 4,677,900 4,677,900 4,677,900
51,659,262 7,886,898 51,659,262 7,886,898
CSB
CSB’s DepEd Salary Loans Business* 3,371,353 3,371,353 − −
CSB’s Motorcycle Loans Business** 2,729,424 2,729,424 − −
6,100,777 6,100,777 − −
PETNET 715,118 715,118 − −
CFSI 3,718,991 − − −
Bangko Kabayan 116,139 116,139 − −
P
=62,310,287 =14,818,932
P P
=51,659,262 =7,886,898
P
*Arising from the acquisition of CSB amounting to = P 3.37 billion
**Arising from the acquisition of PR Savings Bank amounting to = P 3.48 billion. Goodwill impairment recognized for CSB’s
motorcycle loans business amounted to P529.60 million and P223.17 million in 2021 and 2020, respectively
Refer to Note 15 for the discussions on the acquisition of and merger with PR Savings Bank and acquisition of Bangko Kabayan
Refer to Note 1 for the discussion on the acquisition of the Citigroup Inc.’s consumer banking business
The Parent Bank’s Consumer banking business relates to a group of CGUs which comprises of
the consumer banking business acquired from Citibank N.A. (see Note 1), the Parent Bank’s
credit card banking business, and the asset backed-lending business. As of December 31, 2022,
the Bank has yet to complete the allocation of goodwill to the individual CGUs. As allowed by
PFRS, the Bank allocated the goodwill to the aggregation of the group of CGUs which are
expected to benefit from the synergies arising from the acquisition. The Parent Bank expects to
finalize the allocation of goodwill within 1 year from the acquisition date.
The Group performed its annual impairment test in December of each year, unless indicators for
impairment warrant earlier reassessment. The Group considers various internal and external
sources of information in assessing whether there is any indication that goodwill is impaired
including if there are significant changes with an adverse effect on the CGUs that have taken
place during the period in the technological, market, economic or legal environment in which the
Group operates.
As a result of the ongoing economic uncertainty brought about by the COVID-19 pandemic, the
results of the motorcycle lending business were lower than expected.
The volume of loan releases was lower and the motorcycle loans reported higher NPLs,
indicating a potential impairment of goodwill.
*SGVFS169521*
Goodwill and
Other Resources - 102 -
The recoverable amount of the motorcycle loans’ CGU has been determined based on a value in
use calculation using cash flow projections from financial budgets approved by senior
management covering a five-year period. Key assumptions in VIU calculation of CGUs are most
sensitive to loan growth rate and discount rate. Future cash flows and growth rates were based on
historical experiences and strategies developed, including assessment of impact of the COVID-19
pandemic. The discount rate used for the computation of the net present value is the weighted
average cost of capital and was determined by reference to a comparable entity, market
observable inputs and assumptions consistent with the valuation practice. Refer to Note 3 for the
disclosure of assumptions used in the impairment assessment.
As a result of this analysis, management has recognized an impairment charge of = P529.6 million
in 2021 against goodwill with a carrying amount of = P3,259.0 million as of December 31, 2020
and =P223.2 million in 2020 against goodwill with a carrying amount of = P3,482.2 million as of
December 31, 2019. The impairment charge is recorded under Miscellaneous expenses in the
statement of income. In 2022, the Group performed its annual impairment test and noted that
there is no additional impairment to recognize for the motorcycle CGU.
19. Other Resources

The composition of Other resources account as of December 31 follows:
Group Parent Bank

2022 2021 2022 2021
Deferred tax assets (Note 30) P
=7,923,240 =7,046,605
P P
=5,964,897 =5,677,282
P
Software under development 6,190,999 3,366,928 6,190,999 3,366,928
Computer software – net 3,989,158 2,335,558 1,499,300 1,722,139
Advances and other investments 1,755,564 1,640,920 1,754,866 1,597,023
Creditable withholding taxes 1,604,581 1,114,195 1,400,877 1,061,256
Prepaid expenses 985,548 701,181 804,153 427,183
Deferred charges 561,734 378,832 – –
Documentary stamps 363,585 406,610 329,892 222,117
Non-current assets held for sale 331,476 333,917 – –
Trust fund assets 61,681 62,802 – –
Net retirement asset (Note 29) 31,955 62,899 – –
Returned checks and other cash items 29,999 169,164 29,999 169,164
Miscellaneous 2,555,092 1,628,501 1,663,750 1,091,950
26,384,612 19,248,112 19,638,733 15,335,042
Allowance for impairment (Note 20) (42,783) (66,449) (3,298) (26,964)
P
=26,341,829 =19,181,663
P P
=19,635,435 =15,308,078
P
Trust fund assets are maintained to cover pre-need liabilities of FUPI for pre-need plans
computed based on the provisions of PAS 37 as required by the IC and validated by a qualified
actuary in compliance with the rules and regulations of the IC based on the amended PNUCA.
The trust fund assets are managed by the Parent Bank’s Trust and Investment Services Group
(TISG).
*SGVFS169521*
Other Resources and
Allowance for Impairment - 103 -
The details of FUPI’s trust fund assets as of December 31 follow:
2022 2021
Due from other banks* P
=2,362 =16,241
P
Financial assets at FVTPL 44,901 33,519
Financial assets at FVOCI 14,320 14,450
Miscellaneous – net 98 (1,408)
P
=61,681 =62,802
P
*As of December 31, 2022 and 2021, due from other banks included under trust fund assets comprising placements with the Parent Bank
and not included in the above amounted to =
P11.61 million and =
Financial assets at FVTPL comprise of investments in shares of listed companies, government

securities and other corporate debt instruments. The trust fund generated income (loss) of
(P
=1.30 million), =
P0.21 million, and (P=14.98 million) in 2022, 2021, and 2020, respectively
(see Note 28).
The movements in the Computer software account follow:
Group Parent Bank

2022 2021 2022 2021
Balance at beginning of year = 2,335,558
P =1,495,492
P = 1,722,139
P =1,013,475
P
Additions 2,027,117 1,255,269 29,528 962,409
Amortization charges for the year (349,683) (405,150) (252,365) (253,745)
Reclassifications (23,834) (10,053) (2) −
Balance at end of year = 3,989,158
P =2,335,558
P = 1,499,300
P =1,722,139
P
Miscellaneous includes foreclosed machineries, chattels, motorcycle and automobiles, security

deposits and ongoing improvements on the Group’s and the Parent Bank’s branches and offices.
20. Allowance for Impairment
The breakdown of allowance for impairment is shown in the table below:
Group Parent Bank

2022 2021 2022 2021
Receivable from customers (Note 14) =14,038,685
P =13,435,022
P =9,177,037
P =10,035,885
P
Other receivables (Note 14) 476,864 497,833 447,915 464,156
Investments and placements
(Notes 9, 12 and 13) 335,663 293,576 331,543 289,455
Others 114,488 162,876 75,001 123,389
=14,965,700
P =14,389,307
P =10,031,496
P =10,912,885
P
Allowance for impairment of investments and placements include the Group’s and the Parent
Bank’s financial assets at amortized cost, debt financial assets at FVOCI, due from other banks
and interbank loans receivables. Others refer to allowance for impairment of investment
properties and other resources.
With the foregoing level of allowance for impairment and credit losses, management believes
that the Group has sufficient allowance for any losses that the Group may incur from the non-
collection or nonrealization of its receivables and other risk assets.
*SGVFS169521*
The reconciliation of allowance for the total receivables from customers follows.
Total Receivables from Customers - Group
2022
P =861,913
P =11,112,182
P =13,435,022
P
December 31, 2022 − 632,846 1,893,670 2,526,516
Effect of collections and other
movements in receivable balance
(excluding write-offs), and impact of
changes in ECL model and
assumptions (1,313,814) 795,907 (910,571) (1,428,478)
Amounts written-off 1,202,776 (498,644) (704,132) −
Transfers to Stage 3 (779,436) (88,775) 1,348,038 479,827
Impact on ECL of exposures transferred
between stages (16,799) (4,383) (2,611,559) (2,632,741)
P =1,037,808
P =10,525,750
P =14,038,685
P
2021
P =784,234
P =7,900,469
P =10,473,864
P
Stage 1 as at December 31, 2021 969,433 − − 969,433
December 31, 2021 − 101,461 1,927,323 2,028,784
assumptions (1,922,757) (400,158) 2,445,450 122,535
between stages (637,731) 6,942 2,130,552 1,499,763
P =861,913
P =11,112,182
P =13,435,022
P
*SGVFS169521*
Total Receivables from Customers – Parent Bank
2022
Balances at beginning of year =522,406
P =758,099
P =8,755,380
P =10,035,885
P
December 31, 2022 − 448,013 1,081,563 1,529,576
assumptions (1,367,151) 732,291 (991,410) (1,626,270)
Transfers to Stage 1 1,199,324 (495,056) (704,268) −
between stages (773,454) (88,554) 1,347,808 485,800
Amounts written-off (21) (3) (2,268,335) (2,268,359)
P =829,162
P =6,650,072
P =9,177,037
P
2021
P =696,176
P =6,299,830
P =7,691,647
P
December 31, 2021 − 4,296 1,381,647 1,385,943
assumptions (537,120) 22,868 1,085,105 570,853
between stages (637,732) 6,942 2,130,553 1,499,763
Balances at end of year =522,406
P =758,099
P =8,755,380
P =10,035,885
P
*SGVFS169521*
Reconciliation of the allowance for impairment by class follows:
Corporate Loans - Group and Parent Bank
2022
P =595,309
P =1,436,992
P =2,142,125
P
December 31, 2022 − 3,564 16,182 19,746
assumptions (87,059) (273,367) (285,686) (646,112)
Transfers to Stage 1 96,869 (96,869) − −
Transfers to Stage 2 (1,708) 1,708 − −
between stages (95,755) 2,952 − (92,803)
P =233,297
P =141,586
P =423,394
P
2021
P =511,583
P =781,968
P =1,414,483
P
assumptions (73,593) (35,708) 401,514 292,213
Transfers to Stage 3 (20) − 20 −
between stages − 70,290 275,156 345,446
P =595,309
P =1,436,992
P =2,142,125
P
*SGVFS169521*
Commercial Loans - Group and Parent Bank
2022
P =140,537
P =2,202,547
P =2,579,684
P
Stage 2 & 3 as at December 31, 2022 − 235,401 180,066 415,467
assumptions (224,944) (125,034) 247,975 (102,003)
Transfers to Stage 1 85,256 (533) (84,723) −
Transfers to Stage 2 − 42,776 (42,776) −
between stages (85,109) (42,757) 383,315 255,449
P =245,527
P =2,896,794
P =3,457,370
P
2021
P =60,333
P =1,808,878
P =2,040,307
P
assumptions (163,661) 81,053 191,398 108,790
Transfers to Stage 1 28,653 (15) (28,638) −
Transfers to Stage 2 (57) 57 −
Transfers to Stage 3 (1,183) (953) 2,136 −
between stages (28,295) 62 273,770 245,537
P =140,537
P =2,202,547
P =2,579,684
P
In 2022, there were no write-offs for corporate loans.
*SGVFS169521*
Home Loans - Group and Parent Bank
2022
P =13,510
P =2,147,296
P =2,188,969
P
Stage 3 as at December 31, 2022 − 4,492 49,243 53,735
assumptions 112,530 2,082 (730,590) (615,978)
Transfers to Stage 2 (196) 90,171 (89,975) −
Transfers to Stage 3 (390) (2,998) 3,388 −
between stages (478,968) (66,213) 355,503 (189,678)
Amounts written-off - - (2,899) (2,899)
P =33,831
P =1,247,656
P =1,756,683
P
2021
P =49,512
P =1,503,801
P =1,598,087
P
assumptions (33,025) (5,794) 336,434 297,615
between stages (508,891) (52,633) 841,529 280,005
P =13,510
P =2,147,296
P =2,188,969
P
*SGVFS169521*
Consumer Products - Group and Parent Bank

Consumer Products include auto loans, business line, credit cards and the acquired credit card
and the acquired credit card and personal loan portfolio from Citibank.
2022
P =4,732
P =2,362,695
P =2,391,749
P
assumptions (1,059,607) 1,129,937 (133,045) (62,715)
between stages (112,417) 15,913 573,457 476,953
P =168,100
P =2,140,699
P =3,064,528
P
2021
P =64,162
P =1,699,675
P =2,050,344
P
Stage 3 as at December 31, 2021 − 256 1,257,487 1,257,743
assumptions (249,073) (15,855) 217,392 (47,536)
between stages (93,858) (6,929) 646,997 546,210
P =4,732
P =2,362,695
P =2,391,749
P
*SGVFS169521*
Other Consumer Products - Citi
2022
Balances as of acquisition date =−
P =−
P =−
P =−
P
Stage 3 as at December 31, 2022 − 11,561 211 11,772
assumptions (1,430,693) 1,131,267 548,439 249,013
between stages − − − −
P =98,832
P =76,855
P =314,308
P
CSB Salary Loans – Group
2022
P =86,678
P =644,341
P =888,822
P
December 31, 2022 − 156,532 187,114 343,646
assumptions 4,882 (37,605) (83,561) (116,284)
Transfers to Stage 1 2,576 (2,446) (130) −
Transfers to Stage 2 (15,629) 16,043 (414) −
Amounts written-off (16,441) (4,258) (18,996) (39,695)
P =174,497
P =849,136
P =1,294,433
P
*SGVFS169521*
2021
P =23,036
P =272,213
P =379,575
P
December 31, 2021 − 85,014 120,267 205,281
assumptions (150,515) (47,869) 489,963 291,579
P =86,678
P =644,341
P =888,822
P
Other Receivables from Customers
Group
2022
P =21,145
P =2,318,313
P =3,243,673
P
assumptions (59,616) 99,894 74,336 114,614
Transfers to Stage 1 2,139 (1,494) (645) −
Transfers to Stage 2 (2,569) 3,158 (589) −
between stages (7,187) 1,330 35,763 29,906
P =182,554
P =3,249,881
P =4,042,277
P
*SGVFS169521*
2021
P =75,608
P =1,833,934
P =2,991,068
P
assumptions (1,252,889) (375,985) 808,748 (820,126)
between stages (6,688) (3,849) 93,103 82,566
P =21,145
P =2,318,313
P =3,243,673
P
Parent Bank
2022
=123,498 P
=4,009 P
=605,851 P
=733,358
Effect of collections and other movements
in receivable balance (excluding write-
offs), and impact of changes in ECL
model and assumptions (108,071) (1,327) (90,064) (199,462)
Transfers to Stage 1 1,263 (352) (911) −
Transfers to Stage 2 (1) 793 (792) −
Transfers to Stage 3 (4,001) (889) 4,890 −
between stages (1,205) 1,551 35,533 35,879
Amounts written-off (1) − (342,749) (342,750)
Balances at end of year P
=103,319 P
=148,405 P
=223,338 P
=475,062
*SGVFS169521*
2021
P =10,586
P =505,508
P =588,426
P
assumptions (17,766) (828) (61,635) (80,229)
between stages (6,688) (3,849) 93,103 82,566
P =4,009
P =605,851
P =733,358
P
Group
2022
P =235,311
P =−
P =293,576
P
Stage 1 as at December 31, 2022 392 − − 392
(excluding write-offs) (14,481) 56,176 − 41,695
Impact of changes in ECL model and
assumptions − − − −
P =291,487
P P−
= =335,663
P
2021
P =320,249
P =−
P =367,738
P
(excluding write-offs) − 235,311 − 235,311
assumptions (11,270) (320,249) − (331,519)
Balances at end of year P58,265
= P235,311
= P−
= P293,576
=
*SGVFS169521*
Allowance for Impairment and
Deposit Liabilities - 114 -
Parent Bank
2022
P =235,311
P =−
P =289,455
P
Stage 1 as at December 31, 2022 392 − − 392
(excluding write-offs) (14,480) 56,176 − 41,696
P =291,487
P P−
= =331,543
P
2021
P =320,249
P =−
P =363,617
P
Stage 2 as at December 31, 2021 − 235,311 − 235,311
(excluding write-offs) (11,270) (320,249) − (331,519)
P =235,311
P P−
= =289,455
P
21. Deposit Liabilities
The breakdown of deposit liabilities account follows:
Group Parent Bank

2022 2021 2022 2021
Due to banks:
Demand P
=1,729,960 =1,678,258
P P
=1,729,960 =1,677,428
P
Savings 195,453 248,022 195,396 218,560
Time 159,893 283,161 157,364 241,148
Long-term certificate of deposits 10,000 10,000 10,000 10,000
2,095,306 2,219,441 2,092,720 2,147,136
Due to customers:
Demand 230,351,833 202,882,728 231,635,193 204,576,762
Savings 194,825,277 136,181,999 188,285,189 131,856,271
Time 281,041,526 226,226,724 198,917,930 151,489,012
Long-term certificate of deposits 2,990,000 2,990,000 2,990,000 2,990,000
709,208,636 568,281,451 621,828,312 490,912,045
P
=711,303,942 =570,500,892
P P
=623,921,032 =493,059,181
P
*SGVFS169521*
Deposit Liabilities and Bills Payable - 115 -
The breakdown of deposit liabilities account as to currency follows:
Group Parent Bank

2022 2021 2022 2021
Philippine pesos P
=619,749,669 P474,511,262
= P
=532,366,759 =397,069,551
P
Foreign currencies 91,554,273 95,989,630 91,554,273 95,989,630
P
=711,303,942 =570,500,892
P P
=623,921,032 =493,059,181
P
Deposit liabilities bear annual interest rates ranging from 0.00% to 7.00% in 2022, from 0.00% to
8.00% in 2021, and from 0.00% to 9.5% in 2020 for the Group and from 0.00% to 5.75% in
2022, from 0.00% to 5.75% in 2021, and from 0.39% to 1.65% in 2020 for the Parent Bank.
Demand and savings deposits usually have either fixed or variable interest rates while time
deposits have fixed interest rates.
Long Term Negotiable Certificate of Deposits (LTNCD)

On December 12, 2017, the MB of the BSP approved the Parent Bank’s issuance of up to
=20,000,000 of Long-term Negotiable Certificate of Deposits (LTNCD). Out of the approved
P
amount, =P3,000,000 were issued on February 21, 2018 at a fixed coupon rate of 4.375% per
annum, payable quarterly and will mature on August 21, 2023. The net proceeds were utilized to
further improve the Parent Bank’s maturity profile and support business expansion plans.
Interest expense on the deposit liabilities amounted to =

P6,021,671, P
=2,967,692, and 5,616,821, in
2022, 2021, and 2020 respectively, in the Group's statements of income, and =P4,196,509,
=1,805,424, and P
P =4,256,480 in 2022, 2021, and 2020, respectively, in the Parent Bank's
statements of income.
Under existing BSP regulations, non-FCDU deposit liabilities of the Bank are subject to unified
reserve requirement equivalent to 14.0% (under BSP Circulars 1041, 1056 and 1063) as at
December 31, 2019. In 2020, BSP Circulars 1082 and 1092 were issued reducing the reserve
requirement to 12.0%, 3.0% and 2.0% for universal and commercial banks, thrift banks, and rural
banks, respectively. BSP Circulars 1083, 1087, and 1100 were issued in 2020 to provide
guidelines allowing the use of eligible loans to MSME and large enterprises for alternative
compliance to required reserves for deposit liabilities.
LTNCDs are subject to required reserves of 4.0% under BSP Circular 1041. As of December 31,
2022 and 2021, the Group is in compliance with such regulations.
Regular reserves as of December 31, 2022 and 2021 amounted to = P62,263,916 and = P46,511,088,
respectively, for the Group, and =
P59,250,130 and =
P44,334,946, respectively, for the Parent Bank
(see Note 8).
22. Bills Payable
Bills payable consist of borrowings from:
Group Parent Bank

2022 2021 2022 2021
Banks, other financial institutions
and individuals =131,571,232
P =47,399,884
P =98,043,240
P =26,323,437
P
Others 1,275,557 3,768,254 1,265,884 2,254,337
=132,846,789
P =51,168,138
P =99,309,124
P =28,577,774
P
*SGVFS169521*
Bills Payable - 116 -
Bills payable to banks and other financial institutions consist mainly of amortized cost balance of
short-term borrowings. Certain bills payable to banks and other financial institutions are
collateralized by investment securities (see Notes 12 and 38).
Other bills payable of the Group mainly pertain to availments of short-term loan lines from
certain related parties (see Note 32).
The breakdown of bills payable as to currency follows:
Group Parent Bank

2022 2021 2022 2021
Foreign currencies =99,303,162
P =28,569,107
P =99,303,162
P =28,569,107
P
Philippine pesos 33,543,627 22,599,031 5,962 8,667
=132,846,789
P =51,168,138
P =99,309,124
P =28,577,774
P
The breakdown of interest expense on bills payable, which is presented as part of Interest
expense on bills payable and other liabilities account in the statements of income, follows:
Group Parent Bank

2022 2021 2020 2022 2021 2020
Banks, other financial
institutions and individuals = 3,002,685
P =1,229,757
P =1,628,474
P = 1,621,975
P =175,039
P =702,463
P
BSP – 21 52,614 – 21 52,614
Others 485 762 1,211 485 762 1,211
= 3,003,170
P =1,230,540
P =1,682,299
P = 1,622,460
P =175,822
P =756,288
P
In November 2022, the Parent Bank raised $358 million 3-year syndicated loan facility. The
proceeds will be used to partially refinance the USD Senior Medium Term Notes, which matured
on November 29, 2022 (see Note 23).
The range of interest rates of bills payable per currency follows:
Group and Parent Bank

2022 2021 2020
Philippine pesos 1.00% to 8.37% 1.00% to 8.28% 3.34% to 4.50%
Foreign currencies 1.06% to 5.23% 0.10% to 3.05% 0.04% to 3.05%
*SGVFS169521*
Notes and Bonds Payable - 117 -
23. Notes and Bonds Payable
The Group’s and the Parent Bank’s notes and bonds payable as of December 31, 2022 and 2021
Coupon Principal Outstanding Balance
December 31, December 31,
Interest Amount 2022 2021 Issue Date Maturity Date Redemption Date
USD Senior Medium Term
Notes Due 2022 3.369% =27,877,500
P =–
P =25,488,553
P November 29, 2017 November 29, 2022
USD Senior Medium Term
Notes Due 2025 2.125% 16,726,500 16,659,943 15,219,465 October 22, 2020 October 22, 2025
Peso Digital Bonds 3.250% 11,000,000 10,937,832 – June 2, 2022 December 2, 2023
Peso Senior Series C Bonds
Due 2023 2.750% 8,115,000 8,097,039 8,073,690 December 9, 2020 December 9, 2023 December 9, 2023
USD Social Bonds Due
2028 4.061%* 8,363,250 8,312,899 7,589,032 July 23, 2021 July 23, 2028
Unsecured Subordinated
Tier 2 Notes Due 2030
Callable in 2025 5.250% 6,800,000 6,756,565 6,750,838 February 24, 2020 May 24, 2030 May 24, 2030
Peso Senior Series B Bonds
Due 2022 6.000% 5,800,000 – 5,790,951 June 3, 2019 June 3, 2022 June 3, 2022
Peso Senior Series D Bonds
Due 2026 3.375% 885,000 880,047 877,307 December 9, 2020 March 9, 2026 March 9, 2026
Total for Parent Bank 85,567,250 51,644,325 69,789,836
Loans payable 5.750% 150,000 – 64,150 May 31, 2018 May 31, 2023
Total for Group =85,717,250
P = 51,644,325
P =69,853,986
P
*floating interest rate based on LIBOR
USD Senior Medium Term Notes Due 2022

The USD500 million Senior Medium Term Notes Due 2022 were issued under the Parent Bank’s
USD One Billion Medium Term Note (MTN) Programme and were rated Baa2 by Moody’s.
The Notes were listed on the Singapore Exchange Securities Trading Limited (SGX-ST) and
constitute direct, unconditional, unsubordinated and unsecured obligations of the Parent Bank
and will rank pari passu among themselves and equally with all other unsecured obligations of
the Parent Bank from time to time outstanding. In November 2022, the Notes have matured and
were refinanced through a syndicated loan facility (see Note 22).
USD Senior Medium Term Notes Due 2025

These USD300 million Senior Medium Term Notes Due 2025 were issued under the updated
USD 2 Billion MTN Programme of the Parent Bank and were also rated Baa2 by Moody’s. The
Notes were also listed on the SGX-ST.
The Notes will constitute direct, unconditional, unsubordinated and (subject to the Terms and
Conditions of the issuance) unsecured obligations of the Parent Bank and will rank pari passu
among themselves and (save for certain obligations required to be preferred by law) equally with
all other unsecured obligations (other than subordinated obligations, if any) of the Parent Bank
from time to time outstanding.
*SGVFS169521*
Peso Digital Bonds Due 2023

On June 2, 2022, the Parent Bank successfully issued the country’s first-ever offering of Peso
Digital Bonds amounting to ₱11.0 billion. The Digital Bonds with a tenor of 1.5 years and a
fixed rate of 3.25% per annum were issued out of the Bank’s existing ₱39 billion Bond
Program. The Digital Bonds were listed and available for trading on PDEx.
A first for the Philippines, this digital public bond offering and issuance marks a milestone and
the success of this Proof of Concept and paves the way for future utilization of Distributed
Ledger / Blockchain Technology towards more automated and operationally efficient local
capital markets. The Digital Bonds were issued through the digital registry and digital
depository of the Phil. Depository & Trust Corp. utilizing infrastructure powered by #STACS
blockchain and which new digital infrastructure is kept interoperable with the traditional trading
to clearing infrastructure of the Phil. Dealing & Exchange Corp. Fixed Income Market.
Peso Senior Series C Bonds Due 2023

The =P8.12 billion worth of fixed rate Senior Series C Bonds were issued as part of the dual-
tranche issuance of the Bank on December 9, 2020 under its existing P=39 Billion Bond
Program. The bonds were listed on the PDEx.
The Bank may, at its sole option and subject to the Terms and Conditions of the issuance,
redeem the Bonds at par plus accrued interest (if any), without premium or penalty, as of but
excluding the Early Redemption Date.
The Bonds constitute direct, unconditional, unsecured, and unsubordinated peso-denominated

obligations of the Bank, enforceable according to the Terms and Conditions of the Bonds, and
shall at all times rank pari passu and ratably without any preference or priority amongst
themselves, and at least pari passu with all other present and future direct, unconditional,
unsecured, and unsubordinated peso-denominated obligations of the Bank, except for any
obligation enjoying a statutory preference or priority established under Philippine laws.
USD Social Bonds Due 2028

The International Finance Corporation (IFC) invested in a USD 150 million social bond issued
by the Bank under its sustainable finance framework. The social bond carries a floating rate
interest and is unsecured. It is the first social bond by the Parent Bank and its longest-term
USD-denominated bond to date. Proceeds from the bond will be used to finance loans to micro,
small and medium-sized enterprises (MSMEs).
The Parent Bank shall at all times maintain, and abstain from any action which may result in the
breach of, several financial parameters provided in the subscription agreement with IFC.
Unsecured Subordinated Tier 2 Notes Due 2030 Callable in 2025

The Basel III-compliant Unsecured Subordinated Tier 2 Notes were issued by the Parent Bank
under its BSP-approved issuance of ₱20.0 Billion Unsecured Subordinated Notes Qualifying as
Tier 2 Capital.
*SGVFS169521*
Unless the Notes are previously redeemed, the Initial Interest Rate will be reset at the equivalent
of the Initial Spread per annum plus the Benchmark as of Reset Date as defined in the Terms
and Conditions of the Notes. Subject to certain conditions, the BSP Guidelines, and the Terms
and Conditions, the Parent Bank may redeem the Notes in whole and not only in part on the
Redemption Option Date at 100% of the face value of the Notes, plus accrued and unpaid
interest as of but excluding the Redemption Option Date.
The Notes have a loss absorption feature which means the Notes are subject to a Non-Viability
Write-Down in case of a Non- Viability Trigger Event. A Non-Viability Trigger Event is
deemed to have occurred when the Issuer is considered non-viable as determined by the BSP.
The Tier II Notes constitute a direct, unconditional, fixed, unsecured and subordinated
obligation of the Bank. Claims in respect of the Tier II Notes will rank: (a) junior to the claims
of holders of all deposits and general creditors of the Bank; (b) pari passu with obligations of
the Bank that are, expressly or by applicable laws, subordinated so as to rank pari passu with
claims in respect of securities constituting “Tier 2” capital of the Bank; and (c) senior to (i) the
claims for payment of any obligation that, expressly or by applicable law, is subordinated to the
Tier II Notes, (ii) the claims in respect of securities constituting “Tier 1” capital of the Bank,
and (iii) the rights and claims of holders of equity shares of the Bank.
Peso Senior Series B Bonds Due 2022

These P
=5.8 billion worth of Senior Corporate Series B Bonds were issued under the Parent
Bank’s =
P39 Billion Corporate Bonds Program. These fixed rate Bonds were issued in scripless
form and were listed in the PDEx.
The Bonds constitute direct, unconditional, unsecured, and unsubordinated peso-denominated

obligations of the Bank, enforceable according to the Terms and Conditions of the Bonds, and
shall at all times rank pari passu and ratably without any preference or priority amongst
themselves, and at least pari passu with all other present and future direct, unconditional,
unsecured, and unsubordinated peso-denominated obligations of the Bank, except for any
obligation enjoying a statutory preference or priority established under Philippine laws.
The Bank may redeem the Bonds in whole and not only in part on the Early Redemption Date at
the face value of the Bonds, plus accrued and unpaid interest as of but excluding the Early
Redemption Date. The Bonds were redeemed at par on maturity date on June 3, 2022.
Peso Senior Series D Bonds Due 2026

These fixed rate Senior Series Bonds Due 2026 worth =
P885.0 million formed part of the Bank’s
dual-tranche issuance on December 9, 2020. The Bonds were issued under the existing
=39 Billion Corporate Bonds Program of the Bank.
P
The Bank may, at its sole option and subject to the Terms and Conditions of the issuance,
redeem the Bonds at par plus accrued interest (if any), without premium or penalty, as of but
excluding the Early Redemption Date.
The Bonds constitute direct, unconditional, unsecured and unsubordinated obligations of the
Bank.
*SGVFS169521*
Notes and Bonds Payable and
Other Liabilities - 120 -
Loans Payable
On May 31, 2018, UIC availed of a term loan in the amount of P =150,000 with a local bank. The
loan is unsecured and carries a fixed interest rate of 5.75% per annum payable semi-annually.
The term of the loan is five (5) years and is payable in seven (7) equal semi-annual amortization
commencing at the end of the second year from availment. UIC prepaid the remaining balance
of the loan before its maturity date on November 29, 2022.
The interest expense on notes and bonds payable amounted to P =2,490,116, P=2,197,668, and
=2,431,837 in 2022, 2021, and 2020, respectively, for the Group, and =
P P2,465,079, P=2,173,188,
and P
=2,408,257 in 2022, 2021, and 2020, respectively, for the Parent Bank. These are included
under Interest Expense on Bills payable and other liabilities account in the statements of income.
As of December 31, 2022 and 2021, the Group is in compliance with all the debt covenants on
the above notes and bonds.
24. Other Liabilities
Other liabilities consist of the following as of December 31:
Group Parent Bank

2022 2021 2022 2021
Accounts payable P
=15,322,620 =5,799,285
P P
=13,765,817 =4,827,329
P
Accrued taxes and other expenses 10,718,444 5,663,843 8,825,604 4,611,427
Manager’s checks 7,333,511 6,894,499 7,319,745 6,894,499
Bills purchased - domestic and foreign 3,180,968 458,312 3,180,968 458,312
Other dormant credits 2,831,198 2,330,284 2,742,792 2,235,569
Derivative liabilities (Note 11) 1,546,773 750,009 1,546,773 750,009
Lease liabilities 1,424,530 1,382,880 1,177,555 1,043,850
Post-employment defined benefit
obligation (Note 29) 998,997 1,026,250 910,109 893,028
Unearned income - bancassurance (Note 32) 715,710 733,333 715,710 733,333
Payment orders payable 614,557 485,268 614,557 485,268
Withholding taxes payable 451,502 183,284 358,269 142,249
Pre-need reserves 12,346 15,127 – –
Miscellaneous 3,649,330 1,636,843 3,488,317 1,357,936
P
=48,800,486 =27,359,217
P P
=44,646,216 =24,432,809
P
The unearned income represents the unamortized portion of the Exclusive Access Fees (EAF)
arising from the Parent Bank’s bancassurance agreement with a related party (see Note 32).
Set out below is the carrying amount of lease liabilities and the movements during the year:
Group Parent Bank

2022 2021 2022 2021
As at January 1 P
=1,382,880 =1,219,584
P P
=1,043,850 =1,004,057
P
Payments (659,030) (579,065) (496,312) (446,112)
Additions 567,389 673,608 514,000 431,142
Accretion of interest (Note 34) 67,851 68,753 56,240 54,763
Effect of business combination (Note 1) 65,440 – 59,777 –
As at December 31 P
=1,424,530 =1,382,880
P P
=1,177,555 =1,043,850
P
*SGVFS169521*
Other Liabilities and
Capital Funds - 121 -
Accretion of interest is included as part of Interest expense on bills payable and other liabilities
account in the statements of income.
As at December 31, 2022 and 2021, the Group has no lease commitments which have not yet
commenced.
The breakdown of Accrued taxes and other expenses account follows:
Group Parent Bank

2022 2021 2022 2021
Accrued interest payable P
=1,801,913 =787,447
P P
=1,418,309 =626,544
P
Accrued income and other taxes 1,044,520 613,119 663,356 330,028
Other accruals 7,872,011 4,263,277 6,743,939 3,654,855
P
=10,718,444 =5,663,843
P P
=8,825,604 =4,611,427
P
Other accruals represent mainly fringe and other personnel benefits.
25. Capital Funds
Capital Stock
The Parent Bank’s capital stock as of December 31, 2022 and 2021 consists of the following:
Shares Amount
2022 2021 2022 2021
Common – P=10 par value
Authorized 2,530,785,238 2,530,785,238 P
=25,307,852 =25,307,852
P
Issued and outstanding
As at beginning of the year 1,219,362,818 1,218,471,467 12,193,628 12,184,715
Shares issued 922,743,946 891,351 9,227,440 8,913
As at end of the year 2,142,106,764 1,219,362,818 21,421,068 12,193,628
Preferred – P
=100 par value, non-voting
Authorized 100,000,000 100,000,000 P
=10,000,000 =10,000,000
P
Issued and outstanding – – – –
On June 29, 1992, the Bank was originally listed with the then Makati Stock Exchange, now
PSE. A total of 89.7 million shares were issued at an issue price of =
P22.50. As of December 31,
2022 and 2021, there are 2,139.6 million shares and 1,219.4 million shares listed at the PSE.
The number of holders and the closing price of the said shares is 4,961 and P
=86.10 per share as of
December 31, 2022, respectively, and 4,949 and = P99.50 per share as of December 31, 2021,
respectively.
Issuance of Shares under the Employee Stock Plan

The Bank issued 199,964 and 516,435 common shares on January 28, 2022 and February 4,
2022, respectively, 891,351 common shares on January 29, 2021, and 861,906 common shares on
January 24, 2020, to qualified employees under the Parent Bank’s Employee Stock Payment
Plan.
*SGVFS169521*
Capital Funds - 122 -
Distribution of Stock Dividends

On January 5, 2022, the Parent Bank issued 304,838,842 common shares at par value of P =10 for
whole shares and paid =P0.14 million for 1,862.5 fractional shares in relation to the 25% stock
dividends approved by the Bank’s BOD and stockholders on June 25, 2021 and August 11, 2021,
respectively.
Issuance of Shares through Stock Rights

On May 16, 2022, the Parent Bank issued approximately 617.2 million common shares priced at
=64.81 per share. The shares were offered to eligible shareholders as of record date of
P
April 11, 2022 at a ratio of 1 right share for every 2.4707 existing common shares. The newly
issued shares were listed at the PSE on the same date. Net proceeds to the Parent Bank from the
Offer amounted to =P39.80 billion.
Surplus Free
On August 11, 2021, the Parent Bank held a special stockholders meeting and approved the
following matters:
a. Amendment of the Parent Bank’s Articles of Incorporation (AOI) to increase the authorized
capital stock from =
P23.1 billion to =
P35.3 billion, with the increase of P
=12.2 billion equivalent
to 1,219,362,818 common shares with a par value of = P10.00.
b. Declaration of 25% stock dividends in the amount of = P3.0 billion equivalent to 304,840,705
common shares with a par value of = P10.00, to comply with the required 25% subscription of
the increase in authorized capital stock.
The stock dividend is presented as Stock dividend distributable in the statement of financial
position as of December 31, 2021.
On October 14, 2021 and November 17, 2021, the Parent Bank obtained the BSP and the SEC
approval, respectively, for the increase in the authorized capital stock and for the issuance of
common shares to stockholders of record as of December 9, 2021 and payment date on
January 5, 2022 (see Note 36).
Fractional shares resulting from the stock dividend declaration will be paid in cash based on the
closing rate of P
=74.90 as of June 25, 2021, the date of approval by the BOD of the stock dividend
declaration and computed up to two (2) decimal places.
The following is a summary of the cash dividends declared and distributed by the Parent Bank in
2022, 2021, and 2020:
Date of Date of BSP Date of Dividend per Outstanding
Declaration Date of Record Approval Payment Share Shares Total Amount
January 28, 2022 February 14, 2022 N/A March 2, 2022 = 2.80
P 1,524,918,059 = 4,269,771
P
January 29, 2021 February 15, 2021 N/A March 4, 2021 3.50 1,219,362,818 4,267,770
January 24, 2020 February 7, 2020 N/A February 24, 2020 3.50 1,218,471,467 4,264,650
In compliance with BSP regulations, the Parent Bank ensures that adequate reserves are in place
for future bank expansion requirements. The foregoing cash dividend declarations were made
within the BSP’s allowable limit of dividends.
*SGVFS169521*
Capital Funds and
Maturity Profile of Assets and Liabilities - 123 -
Surplus Reserves
The amended PNUCA requires that the portion of retained earnings representing Trust fund
income of FUPI be automatically restricted to payments of benefits of plan holders and related
payments as allowed in the amended PNUCA. The accumulated Trust Fund income, net of
releases representing the amount of Trust fund income that pertains to the matured and
pre-terminated plans of planholders which have been withdrawn from the trust fund during the
year, should be appropriated and presented separately as Surplus Reserves in the statements of
changes in capital funds. FUPI transferred out P
=55.79 million, P
=0.66 million, and =P1,458.7
million from appropriated reserves for the years ended December 31, 2022, 2021, and 2020,
respectively.
In compliance with BSP regulations, a portion of the Group’s income from trust operations is
setup as Surplus Reserves. For the years ended December 31, 2022, 2021, and 2020, the Group
and the Parent Bank appropriated P
=31.7 million, P
=24.0 million, and =
Included in this account is the difference between the 1% general loan loss provision (GLLP)
over the computed ECL allowance for credit losses related to Stage 1 accounts, as a required BSP
appropriation. As of December 31, 2022 and 2021, surplus reserves related to the difference
between GLLP over ECL allowance amounted to = P2.12 billion and =P2.44 billion, respectively,
for the Group and, =P1.7 billion and =
P2.02 billion, respectively, for the Parent Bank.
26. Maturity Profile of Assets and Liabilities
The following tables show an analysis of assets and liabilities analyzed according to whether they
are expected to be recovered or settled within one year and beyond one year from the statement
of financial position date:
Group
2022 2021
Due within Due beyond Due within Due beyond
one year one year Total one year one year Total
Financial Assets
Cash and other cash items P9,891,536
= P−
= P9,891,536
= =8,904,903
P =−
P =8,904,903
P
Due from BSP 94,610,308 − 94,610,308 103,407,946 − 103,407,946
Due from other banks 46,258,411 − 46,258,411 54,290,872 − 54,290,872
IBLR − − − 17,492,657 − 17,492,657
SPURRA 23,553,973 − 23,553,973 23,420,742 − 23,420,742
Trading and investment securities
at FVTPL 8,653,516 − 8,653,516 5,640,005 − 5,640,005
at amortized cost - gross 431,164 244,501,669 244,932,833 3,956,003 162,655,314 166,611,317
at FVOCI 6,127,961 73,633,801 79,761,762 36,405 65,636,205 65,672,610
Loans and receivables - net of
unearned discounts 206,542,153 287,631,294 494,173,447 102,745,416 247,541,328 350,286,744
Other resources 245,340 1,787,617 2,032,957 233,374 1,702,411 1,935,785
396,314,362 607,554,381 1,003,868,743 320,128,323 477,535,258 797,663,581
(Forward)
*SGVFS169521*
Maturity Profile of Assets and Liabilities - 124 -
Group
2022 2021
Nonfinancial Assets
Investment in associates =−
P = 123,396
P = 123,396
P =−
P =142,355
P =142,355
P
Bank premises, furniture, fixtures
and equipment − 16,504,614 16,504,614 − 13,424,676 13,424,676
Investment properties − 11,432,533 11,432,533 − 11,700,174 11,700,174
Goodwill − 62,310,287 62,310,287 − 14,818,932 14,818,932
Other resources 2,953,714 21,397,941 24,351,655 2,653,680 14,658,647 17,312,327
2,953,714 111,768,771 114,722,485 2,653,680 54,744,784 57,398,464
= 399,268,076
P P
= 719,323,152 P
= 1,118,591,228 =322,782,003
P =532,280,042
P =855,062,045
P
Allowance for credit losses and
impairment (Notes 20) 14,953,413 14,377,276
Accumulated depreciation
(Notes 16 and 17) 10,899,950 9,589,308
25,853,363 23,966,584
P
= 1,092,737,865 P
=831,095,461
Deposit liabilities P649,537,302
= P61,766,640
= P
= 711,303,942 =509,088,972
P =61,411,920
P =570,500,892
P
Bills payable 107,029,992 25,816,797 132,846,789 37,518,356 13,649,782 51,168,138
Notes and bonds payable 8,097,039 43,547,286 51,644,325 31,279,504 38,574,482 69,853,986
Other liabilities 38,313,521 4,625,903 42,939,424 20,074,647 1,787,707 21,862,354
802,977,854 135,756,626 938,734,480 597,961,479 115,423,891 713,385,370
Nonfinancial Liabilities
Accrued income and other taxes 1,044,520 − 1,044,520 613,119 − 613,119
Other liabilities 451,502 4,365,040 4,816,542 183,284 4,700,460 4,883,744
1,496,022 4,365,040 5,861,062 796,403 4,700,460 5,496,863
= 804,473,876
P = 140,121,666
P = 944,595,542
P =598,757,882
P =120,124,351
P =718,882,233
P
Parent Bank
2022 2021
Financial Assets
Cash and other cash items P8,924,249
= P−
= P8,924,249
= P7,988,517
= =−
P P7,988,517
=
Due from BSP 66,588,121 − 66,588,121 67,478,389 − 67,478,389
Due from other banks 42,277,856 − 42,277,856 51,337,269 − 51,337,269
IBLR − − − 17,492,657 − 17,492,657
SPURRA 14,634,811 − 14,634,811 15,541,296 − 15,541,296
Trading and investment securities
at FVTPL 8,583,178 − 8,583,178 5,571,270 − 5,571,270
at amortized cost - gross 356,113 235,349,487 235,705,600 3,877,699 158,510,888 162,388,587
at FVOCI 6,108,089 73,359,589 79,467,678 − 65,370,691 65,370,691
Loans and receivables - net of
unearned discounts 197,799,858 205,590,687 403,390,545 89,910,665 196,166,281 286,076,946
Other resources 183,757 1,754,866 1,938,623 169,164 1,597,023 1,766,187
345,456,032 516,054,629 861,510,661 259,366,926 421,644,883 681,011,809
(Forward)
*SGVFS169521*
Maturity Profile of Assets and Liabilities and
Service Charges, Fees and Commissions - 125 -
Parent Bank
2022 2021
Nonfinancial Assets
Investment in subsidiaries =−
P = 31,758,460
P = 31,758,460
P =−
P =23,082,955
P =23,082,955
P
Bank premises, furniture, fixtures
and equipment − 12,356,880 12,356,880 − 9,522,584 9,522,584
Investment properties − 10,129,917 10,129,917 − 10,288,745 10,288,745
Goodwill − 51,659,262 51,659,263 − 7,886,898 7,886,898
Other resources 2,534,922 15,165,189 17,700,111 2,141,413 11,427,442 13,568,855
2,534,922 121,069,708 123,604,630 2,141,413 62,208,624 64,350,037
= 347,990,954
P P
= 637,124,337 P
= 985,115,291 =261,508,339
P =483,853,507
P =745,361,846
P
Allowance for credit losses and
impairment 10,019,209 10,900,854
Accumulated depreciation
(Notes 16 and 17) 8,055,011 6,942,701
18,074,220 17,843,555
P
= 967,041,071 =727,518,291
P
Deposit liabilities 584,787,370 39,133,662 623,921,032 443,573,142 49,486,039 =493,059,181
P
Bills payable 88,265,362 11,043,762 99,309,124 23,646,105 4,931,669 28,577,774
Notes and bonds payable 8,097,039 43,547,286 51,644,325 31,279,504 38,510,332 69,789,836
Other liabilities 35,164,978 4,255,586 39,420,564 18,271,686 1,362,008 19,633,694
716,314,749 97,980,296 814,295,045 516,770,437 94,290,048 611,060,485
Nonfinancial Liabilities
Accrued income and other taxes 663,356 − 663,356 330,028 − 330,028
Other liabilities 358,269 4,204,027 4,562,296 142,249 4,326,838 4,469,087
1,021,625 4,204,027 5,225,652 472,277 4,326,838 4,799,115
= 717,336,374
P P
= 102,184,323 =
P819,520,697 =517,242,714
P =98,616,886
P =615,859,600
P
27. Service Charges, Fees and Commissions
This account is broken down as follows:
Group Parent Bank

2022 2021 2020 2022 2021 2020
Service charges = 5,308,086
P =2,817,479
P =1,402,768
P = 4,812,508
P =1,850,655
P =1,040,199
P
Commissions from
bancassurance (Note 32) 528,592 230,570 148,338 528,592 230,570 148,338
Bank commissions 241,109 189,630 190,677 218,555 157,510 128,194
Others 703,884 535,632 604,856 126,107 253,621 406,889
= 6,781,671
P =3,773,311
P =2,346,639
P = 5,685,762
P =2,492,356
P =1,723,620
P
Others include various commission income from securities brokering and management fees.
*SGVFS169521*
Miscellaneous Income and Expenses - 126 -
28. Miscellaneous Income and Expenses
Miscellaneous Income
Miscellaneous income is composed of the following:

Group
2022 2021 2020
Foreign exchange gains - net P
= 2,151,194 =1,295,539
P =535,536
P
Gain (loss) on sale of investment properties (Note 17) 1,224,045 (43,689) 229,148
Recoveries from charged-off assets 579,130 164,270 94,523
Gain on foreclosure of investment properties (Note 17) 466,388 135,309 153,876
Income from trust operations (Note 31) 316,939 239,994 171,271
Fines and penalties 289,138 175,877 209,382
Rental (Notes 17 and 34) 218,019 116,450 154,077
Gain (loss) on sale of property and equipment (14,849) 18,108 (8,641)
Dividend 6,076 145,789 200,671
Trust fund income (loss) (Note 19) (1,301) 212 (14,976)
Gain on sale of investments in associates and
subsidiary (Note 15) − 167,332 −
Gain from bargain purchase (Note 15) − − 25,291
Others 1,363,805 446,624 328,838
P
= 6,598,584 =2,861,815
P =2,078,996
P
Parent Bank
2022 2021 2020
Share in net profit of subsidiaries (Note 15) P
= 1,712,086 =1,173,016
P =953,082
P
Foreign exchange gains – net 1,523,650 869,122 242,388
Gain on sale of investment properties (Note 17) 1,193,004 207,360 195,471
Recoveries from charged-off assets 533,616 131,843 48,258
Gain on foreclosure of investment properties (Note 17) 466,388 135,309 153,876
Income from trust operations (Note 31) 316,939 239,994 171,271
Rental (Notes 17 and 34) 154,907 132,734 164,177
Dividend 2,768 145,789 200,671
Gain (loss) on sale of property and equipment (429) 1,900 6,236
Others 1,305,788 329,884 220,236
P
= 7,497,855 =3,542,828
P =2,565,048
P
Miscellaneous Expenses
The breakdown of miscellaneous expenses follows:

Group
2022 2021 2020
Information technology P
= 3,115,086 =1,559,722
P =1,072,710
P
Advertising and publicity 2,653,507 1,078,193 657,220
Insurance 1,353,558 1,095,425 1,085,667
Outside services 1,260,553 1,304,352 882,658
Management and professional fees 1,062,648 424,333 421,616
Card related expenses 730,958 493,255 326,021
Supervision and compliance costs 684,576 597,197 579,870
Communication 460,209 434,029 279,268
Provision for impairment of non-current assets held for sale 372,323 383,288 181,410
Stationery and supplies 360,432 369,415 221,047
Transportation and travel 334,164 175,810 177,591
Litigation 183,726 73,377 189,844
Repairs and maintenance 169,308 129,711 168,584
Representation and entertainment 74,712 43,165 39,516
Reversal of impairment on investment properties (Note 17) (24,695) (64,649) −
Impairment on goodwill (Note 18) − 529,599 223,172
Others 1,873,129 1,585,169 1,193,207
P
= 14,751,697 =10,277,070
P =7,749,066
P
*SGVFS169521*
Miscellaneous Income and Expenses and
Salaries and Employee Benefits - 127 -
Parent Bank
2022 2021 2020
Information technology P
= 2,937,704 =1,475,863
P =1,015,784
P
Advertising and publicity 2,585,483 1,052,145 619,558
Insurance 1,176,892 952,327 967,995
Outside services 863,284 706,927 607,103
Card related expenses 730,958 493,255 326,021
Management and professional fees 676,020 337,332 320,891
Supervision and compliance costs 660,929 517,116 553,058
Communication 324,773 287,329 143,293
Stationery and supplies 292,157 322,034 173,489
Transportation and travel 171,298 80,497 92,934
Litigation 170,532 69,306 189,347
Repairs and maintenance 124,642 92,144 122,550
Representation and entertainment 63,983 36,471 34,107
Reversal of impairment on investment properties (Note 17) (24,722) (64,649) −
Provision for impairment of investment in
subsidiaries (Note 15) − − 290,002
Others 1,147,982 789,174 670,331
P
= 11,901,915 =7,147,271
P =6,126,463
P
29. Salaries and Employee Benefits
Salaries and Employee Benefits Expense
Expenses recognized for employee benefits are as follows:
Group
2022 2021 2020
Short-term benefits:
Salaries and wages P
=5,581,557 P4,378,637
= P4,042,160
=
Bonuses and fringe benefits 3,304,037 3,279,091 2,964,199
Social security costs 267,273 209,543 172,358
Other benefits 200,104 250,263 175,912
Post-employment and other long-term benefits 677,742 529,168 454,575
P
=10,030,713 =8,646,702
P =7,809,204
P
Parent Bank
2022 2021 2020
Short-term benefits:
Salaries and wages P
=4,234,232 P3,167,844
= P2,958,540
=
Bonuses and fringe benefits 2,480,198 2,712,001 2,359,984
Social security costs 164,995 123,634 101,542
Other benefits 159,729 160,551 114,174
Post-employment and other long-term benefits 513,582 427,390 376,741
P
=7,552,736 =6,591,420
P =5,910,981
P
Post-employment Defined Benefit Plan and Defined Contribution Plan
(a) Characteristics of the Defined Benefit Plan
The Group maintains funded, tax-qualified, noncontributory pension plans covering all
regular full-time employees that are being administered by appointed trustee banks, including
the Parent Bank’s TISG, for the Parent Bank, UIC, CSB, FUIFAI, Bangko Kabayan, PBI,
and PETNET. Under these pension plans, all covered employees are entitled to cash benefits
after satisfying certain age and service requirements.
*SGVFS169521*
The Group maintains various retirement plans. Two of which are being maintained for
UnionBank and former iBank employees, hence, the Parent Bank presents pension
information in its financial statements separately for the three plans. The other pension plans
are for UIC, CSB, FUIFAI, Bangko Kabayan, PBI, PETNET, CFSI and former Citigroup
Inc.’s consumer banking business employees.
UnionBank Plan
The normal retirement age is 60. The plan also provides for an early retirement at age 55, or
age 50 with the completion of at least ten years of service. However, late retirement is
subject to the approval of the Parent Bank’s BOD. Normal retirement benefit is an amount
equivalent to 150% of the final monthly salary for each year of credited service.
Former iBank Plan

The normal retirement age is 60 with a minimum of five years of credited service. The plan
also provides for an early retirement at age 50 with the completion of at least ten years of
service and late retirement subject to the approval of the Parent Bank’s BOD on a case-to-
case basis. Normal retirement benefit is an amount equivalent to 125% of the final monthly
covered compensation for every year of credited service.
UIC Plan
The optional retirement age is 60 and the compulsory retirement age is 65. Both must have a
minimum of five years of credited service. Both have retirement benefit equal to one-half
month’s salary as of the date of retirement multiplied by the employee’s year of service.
Upon retirement of an employee, whether optional or compulsory, his services may be
continued or extended on a case to case basis upon agreement of management and employee.
This is based on the retirement plan benefits provided in the Retirement Law (R.A. No.
7641). Under the law, unless the parties provide for broader inclusions, the term one-half
(1/2) month salary shall mean fifteen (15) days plus one-twelfth (1/12) of the 13th month pay
and the cash equivalent of not more than (5) days of service incentive leaves.
CSB Plan
The normal retirement age is 60 or completion of 30 years of service whichever is earlier.
The service of any member, however, may be extended from year-to-year beyond the normal
retirement date, provided such an extension of service is with the consent of the member and
the express approval of CSB. The plan also provides for an early retirement after completion
of at least ten years of service. Normal retirement benefit is an amount equivalent to 100%
of the final basic monthly salary multiplied by the number of years of service prior to
January 1, 2008 and 150% of the final basic monthly salary for services rendered starting
January 1, 2008.
FUIFAI Plan
also provides for an early retirement at age 50 with a minimum of five years of credited service
and late retirement after age 60, both subject to the approval of FUIFAI’s BOD. Normal
retirement benefit is an amount equivalent to 150% of the final monthly covered compensation
(average monthly basic salary during the last 12 months of credited service) for every year of
credited service.
*SGVFS169521*
PETNET Plan
The normal retirement age is 60. The plan also provides for an early retirement at age 50 with
the completion of at least ten years of service and late retirement beyond age 60. However,
early and late retirement are subject to the approval of the company. Retirement benefit is an
amount equivalent to 92% of the final monthly salary for each year of continuous service.
Bangko Kabayan Plan

The normal retirement age is 60 with at least five years of credited service. Retirement benefit
is an amount equivalent to 100%, 125% or 150% of the latest basic monthly salary for each
year of credited service if the years of service is 10 years but less than 15 years, 15 years but
less than 20 years, and 20 years or more, respectively.
PBI Plan
The normal retirement age is 60 with at least five years of credited service. Retirement benefit
is an amount equivalent to 22.5 days pay for every year of credited service.
Former Citibank, N.A., PH Consumer Business Plans

Fund B and Fund C
also provides for an early retirement at age 50 with the completion of at least ten years of
continuous service. Normal retirement benefit is an amount equivalent to 200% of the final
average covered monthly salary for each year of credited service.
The Parent Bank and Citigroup, Inc. agreed that the previous tenure of Citi employees will be
continued upon joining with the Group.
(b) Characteristics of the Defined Contribution Plans
The Group maintains a defined contribution plan covering all regular and permanent
employees. Starting on the date of membership of an employee in the Plan, the employer
shall contribute to the retirement fund 8% of the member’s salary as defined every month.
As this plan operates in the Philippines, it is subject to R.A. No. 7641, which requires a
minimum benefit equivalent to one-half month’s salary for every year of service, with six
months or more of service considered as one year.
Former Citibank, N.A., PH Consumer Business Plan

Fund D
Fund D is an allocated fund established to hold contributions on behalf of and made by the
employees and the corresponding earnings and losses on such contributions. The normal
retirement age is 60 with a minimum of five years of credited service. The plan also provides
for an early retirement at age 50 with the completion of at least ten years of continuous
service. Normal retirement benefit is an amount equivalent to the sum of (a) 100% of the
balance in the Member’s Individual Account Balances (IAB) attributable to the employer’s
contributions as of most recent valuation prior to his retirement date adjusted for subsequent
contributions and earnings and (b) 100% of the balance in the Member’s IAB attributable to
the employee’s contributions as of most recent valuation prior to his retirement date adjusted
for subsequent contributions and earnings.
*SGVFS169521*
CFSI Plan
The unfunded, contributory defined contribution retirement plan covers all regular full-time
employees. Contribution to the plan is equal to 8% of the annual basic salary of each
covered employee.
(c) Analysis of Amounts Presented in the Financial Statements
Actuarial valuations are made annually to update the retirement benefit costs and the amount
of contributions. All amounts presented in the subsequent pages are based on the actuarial
valuation reports obtained from independent actuaries in 2022 and 2021.
The amounts of post-employment defined benefit obligation (net retirement asset) recognized
in the statements of financial position are determined as follows (see Notes 19 and 24):
Group
2022 2021
Present value of the obligation P
=6,194,063 P5,285,027
=
Fair value of plan assets 5,227,021 4,321,676
P
=967,042 =963,351
P
As of December 31, 2022 and 2021, the net retirement obligation amounting to
=967,042 and P
P =963,351 is separately shown as Net retirement asset of =
P31,955 and
=62,899, respectively (see Note 19), and as Post-employment defined benefit obligation of
P
=998,997 and P
P =1,026,250, respectively (see Note 24).
Parent Bank – UnionBank Plan

2022 2021
=3,669,196 =3,876,193
P
Fair value of plan assets 2,958,901 3,017,887
P
=710,295 =858,306
P
Parent Bank – Former iBank Plan

2022 2021
=564,801 =638,772
P
Fair value of plan assets 538,071 604,050
P
=26,730 =34,722
P
Parent Bank – Former Citibank

PH Consumer Business Plans
2022
=1,234,712
Fair value of plan assets 1,061,628
P
=173,084
*SGVFS169521*
The movements in the present value of the post-employment benefit obligation recognized in
the financial statements are as follows:
Group
2022 2021 2020
Balance at beginning of year P
=5,285,027 =5,225,149
P =3,912,530
P
Current service cost 579,173 529,168 456,544
Interest expense 244,198 158,374 182,222
Past service cost − − (1,969)
Remeasurements:
Actuarial losses (gains) arising from
Changes in financial assumptions (917,442) (524,992) 747,764
Experience adjustments 27,707 60,611 (190)
Changes in demographic assumptions (3,246) 977 4,095
Benefits paid (375,742) (164,260) (157,627)
Effects of business combinations*(Note 1) 1,354,388 − 81,780
=6,194,063 =5,285,027
P =5,225,149
P
* represents retirement obligation of employees from the acquired business at the date of business combination
Parent Bank - UnionBank Plan

2022 2021 2020
=3,876,193 =3,861,379
P =2,862,263
P
Remeasurements:
Experience adjustments 1,911 74,233 7,076
Changes in demographic assumptions − − 7,660
Benefits paid (168,523) (186,841) (91,091)
=3,669,196 =3,876,193
P =3,861,379
P
Parent Bank - Former iBank Plan

2022 2021 2020
=638,772 =683,325
P =550,665
P
Remeasurements:
Experience adjustments (3,563) 6,241 1,006
Changes in demographic assumptions − 1,134 (5,280)
Benefits paid (43,302) (36,753) (25,321)
=564,801 =638,772
P =683,325
P
Parent Bank – Former

Citibank PH Consumer
Business Plans
2022
=−
Effect of business combination (Note 1) 1,332,245
Current service cost 46,423
Interest expense 30,592
Remeasurements:
Changes in financial assumptions (191,487)
Experience adjustments 16,939
=1,234,712
*SGVFS169521*
The movements in the fair value of plan assets are presented below.
Group
2022 2021 2020
=4,321,676 =4,113,808
P =3,572,539
P
Interest income 208,245 118,247 167,778
Return on plan asset (excluding amounts included
in net interest) (520,217) 39,271 117,046
Contributions to the plan 417,379 219,028 353,473
Benefits paid (261,690) (168,678) (157,625)
Effects of business combinations (Note 1) 1,061,628 − 60,597
=5,227,021 =4,321,676
P =4,113,808
P

2022 2021 2020
=3,017,887 =2,857,169
P =2,471,361
P
Interest income 143,174 96,851 111,781
in net interest) (426,421) 20,665 109,553
Benefits paid (168,523) (186,841) (91,091)
=2,958,901 =3,017,887
P =2,857,169
P

2022 2021 2020
=604,050 =582,491
P =541,311
P
Interest income 27,177 18,888 24,212
in net interest) (73,813) 16,291 22,019
Benefits paid (43,302) (36,753) (25,321)
=538,071 =604,050
P =582,491
P
Parent Bank - Former

Business Plans
2022
=−
Effect of business combination (Note 1) 1,061,628
Interest income 25,088
in net interest) (25,088)
=1,061,628
*SGVFS169521*
The composition of the fair value of plan assets at the end of the reporting period by category
and risk characteristics is shown below.
Group
2022 2021
Bank deposits =403,505
P =453,805
P
Quoted equity securities:
Financial and insurance activities 2,614,648 2,114,621
Real estate activities 68,099 159,786
Electricity, gas and water 35,533 15,192
Wholesale and retail trade 13,376 7,366
Others 123,645 160,451
2,855,301 2,457,416
Debt securities:
Corporate bonds 813,103 1,123,070
Philippine government bonds 40,124 132,660
853,227 1,255,730
Receivable related to the plan assets of the employees
from the acquired business (Note 1) 1,061,628 −
Others 53,360 154,725
=5,227,021
P =4,321,676
P

2022 2021
P =382,607
P
Financial and insurance activities 1,854,600 1,408,610
Electricity, gas and water 21,170 7,264
Others 99,570 137,445
2,041,092 1,689,135
Debt securities:
Corporate bonds 552,495 867,833
Philippine government bonds 20,364 65,640
572,859 933,473
Others 7,937 12,672
=2,958,901
P =3,017,887
P

2022 2021
P =39,799
P
Financial intermediation 353,260 350,903
Others 29,351 22,916
398,331 405,151
Debt securities:
Corporate bonds 95,256 150,598
Philippine government bonds − 7,508
95,256 158,106
Others 1,088 994
=538,071
P =604,050
P
*SGVFS169521*
Equity securities under the fund are primarily investments in corporations listed in the PSE,
which include P=352,208 and P =277,114 investments in the shares of stocks of the Parent
Bank as of December 31, 2022 and 2021, respectively, while debt securities represent
investments in government and corporate bonds, which include = P354,516 and = P479,891
investment in the notes of the Parent Bank as of December 31, 2022 and 2021, respectively
(see Note 32).
The fair values of the above equity and debt securities are determined based on quoted
market prices in active markets (classified as Level 1 of the fair value hierarchy). The
retirement fund neither provides any guarantee or surety for any obligation of the Parent
Bank nor its investments in the Bank’s shares of stocks covered by any restriction and liens.
Bank deposits are maintained with reputable financial institutions, which include P =348,462
and P=394,281 deposits with the Parent Bank as of December 31, 2022 and 2021, respectively
(see Note 32).
Actual returns on plan assets amounted to (P

=311,972) in 2022, =
P157,518 in 2021, and
=284,824 in 2020 for the Group. Actual returns on plan assets amounted to (P
P =283,247) in
2022, P
=117,517 in 2021, and = P221,334 in 2020 for UnionBank Plan and (P
=46,636) in 2022,
=35,179 in 2021, and =
P P46,231 in 2020 for Former iBank Plan.
The amounts recognized in the statements of income in respect of the post-employment

defined benefit plan are as follows:
Group
2022 2021 2020
Current service cost P
=579,173 =529,168
P =456,544
P
Past service cost − − (1,969)
Net interest expense (income) 35,953 40,127 14,444
P
=615,126 =569,295
P =469,019
P

2022 2021 2020
=382,470 =393,374
P =347,923
P
Net interest expense (income) 33,242 38,160 14,520
P
=415,712 =431,534
P =362,443
P

2022 2021 2020
=30,598 =34,016
P =28,818
P
Net interest expense (income) 1,691 3,499 595
P
=32,289 =37,515
P =29,413
P

Business Plans
2022
=46,423
Net interest expense (income) 5,504
P
=51,927
*SGVFS169521*
The amounts recognized in other comprehensive income in respect of the post-employment

defined benefit plan are as follows:
Group
2022 2021 2020
Actuarial losses (gains) arising from changes in:
Financial assumption (P
= 917,442) (P
=524,992) =747,764
P
Experience adjustments 27,707 60,611 (190)
Demographic assumptions (3,246) 977 4,095
Return on plan assets (excluding amounts
included in net interest) 520,217 (39,271) (117,046)
(P
= 372,764) (P
=502,675) P634,623
=

2022 2021 2020
=599,271) (P
=400,963) =601,247
P
Experience adjustments 1,911 74,233 7,076
Demographic assumptions − − 7,660
(P
= 170,939) (P
=347,395) =506,430
P

2022 2021 2020
=86,572) (P
=71,578) =108,630
P
Experience adjustments (3,563) 6,241 1,006
Demographic assumptions − 1,134 (5,280)
(P
= 16,322) (P
=80,494) P82,337
=

Business Plans
2022
=191,487)
Experience adjustments 16,939
Return on plan assets (excluding amounts included in net interest) 25,088
(P
= 149,460)
In addition to the above items, the Parent Bank also recognized its share of the other
comprehensive income of subsidiaries in respect of the post-employment defined benefit plan
amounting to = P30,406 gain, P
=38,907 gain, and P
=21,228 loss in 2022, 2021, and 2020,
respectively (see Note 15).
The Group and the Parent Bank expect to contribute =

P715,489 and =
P609,131, respectively, in
2023.
*SGVFS169521*
In determining the retirement benefits, the following actuarial assumptions were used:
Group
2022 2021 2020
Retirement age 60 60 60
Average remaining working life 5-26 years 6-27 years 6-19 years
Discount rate 4.00%-7.56% 3.88%-5.15% 3.37%-3.98%
Expected rate of salary increase 2.00%-7.00% 2.00%-6.00% 3.50%-6.00%
Employee turnover rate 0%-26% 0%-22% 0%-22%

2022 2021 2020
Average remaining working life 10 years 10 years 10 years
Discount rate 7.23% 5.02% 3.80%
Expected rate of salary increase 6.00% 6.00% 6.00%

2022 2021 2020
Average remaining working life 9 years 9 years 9 years
Discount rate 7.05% 4.87% 3.47%
Expected rate of salary increase 6.00% 6.00% 6.00%
Parent Bank – Former Citibank Consumer PH Business Plan 2022

Retirement age 60
Average remaining working life 8 to 15 years
Discount rate 7.25%
Expected rate of salary increase 7.00%
Employee turnover rate 0%-16%
Assumptions regarding future mortality and disability are based on published statistics and
mortality tables. These assumptions were developed by management with the assistance of
an independent actuary. Discount factors are determined close to the end of each reporting
period by reference to the interest rates of a zero-coupon government bond with terms to
maturity approximating to the terms of the retirement obligation. Other assumptions are
based on current actuarial benchmarks and management’s historical experience.
(d) Risk Associated with the Retirement Plan
The plans expose the Group to actuarial risks such as investment risk, interest rate risk,
longevity risk and salary risk.
 Investment and Interest Risk
The present value of the defined benefit obligation is calculated using a discount rate
determined by reference to market yields of government bonds. Generally, a decrease in
the interest rate of a reference government bonds will increase the plan obligation.
However, this will be partially offset by an increase in the return on the plan’s
investments in debt securities and if the return on plan asset falls below this rate, it will
create a deficit in the plan. Currently, the plans are mostly invested in equity securities.
Due to the long-term nature of plan obligation, a level of continuing equity investments
is an appropriate element of the Group’s long-term strategy to manage the plans
efficiently.
*SGVFS169521*
 Longevity and Salary Risks
The present value of the defined benefit obligation is calculated by reference to the best
estimate of the mortality of the plan participants both during and after their employment
and to their future salaries. Consequently, increases in the life expectancy and salary of
the plan participants will results in an increase in the plan obligation.
(e) Other Information
The information on the sensitivity analysis for certain significant actuarial assumptions, the
Group’s asset-liability matching strategy, and the timing and uncertainty of future cash flows
related to the retirement plan are described below and in the succeeding pages.
 Sensitivity Analysis
The following table summarizes the effects of changes in the significant actuarial
assumptions used in the determination of the defined benefit obligation as of
December 31:
Group
Impact on Post-Employment Defined

Benefit Obligation
Change in Increase in Decrease in
Assumption Assumption Assumption
December 31, 2022
Discount rate +/-1.0% (P
= 828,743) P
=1,028,688
Salary growth rate +/-1.0% 1,082,018 (913,920)
Turn-over rate +/-20.0% 218,908 (219,330)
December 31, 2021

=380,097) P445,039
=
Salary growth rate +/-1.0% 485,262 (441,600)
Turn-over rate +/-20.0% (77,292) 86,152
UnionBank Plan

Benefit Obligation
December 31, 2022
= 408,525) P
=535,066
Turn-over rate +/-20.0% (11,449) 10,234
December 31, 2021

=277,799) P322,564
=
Turn-over rate +/-20.0% (30,641) 32,356
*SGVFS169521*
Former iBank Plan

Benefit Obligation
December 31, 2022
= 33,091) P
=33,091
Turn-over rate +/-20.0% 2,295 (2,488)
December 31, 2021

=43,844) P49,790
=
Turn-over rate +/-20.0% (2,388) 2,568
Former Citibank Consumer PH Business Plans

Benefit Obligation
December 31, 2022
Discount rate +/-1.0% (80,949) 106,031
Turn-over rate +/-20.0% (11,035) 12,894
The above sensitivity analysis is based on a change in an assumption while holding all
other assumptions constant. This analysis may not be representative of the actual change
in the defined benefit obligation as it is unlikely that the change in assumptions would
occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined
benefit obligation has been calculated using the projected unit credit method at the end of
the reporting period, which is the same as that applied in calculating the defined benefit
obligation recognized in the statements of financial position.
 Asset-liability Matching Strategies
To efficiently manage the retirement plan, the Group through its Retirement Committee,
ensures that the investment positions are managed in accordance with its asset-liability
matching strategy to achieve that long-term investments are in line with the obligations
under the retirement scheme. This strategy aims to match the plan assets to the
retirement obligations by investing in long-term fixed interest securities (i.e., government
or corporate bonds) with maturities that match the benefit payments as they fall due and
in the appropriate currency. The Group actively monitors how the duration and the
expected yield of the investments are matching the expected cash outflows arising from
the retirement obligations. In view of this, investments are made in reasonably
diversified portfolio, such that the failure of any single investment would not have a
material impact on the overall level of assets.
A large portion of assets as of December 31, 2022 and 2021 consists of equity securities
and bonds, although the Group also invests in bank deposits. The Group believes that
equity securities offer the best returns over the long term with an acceptable level of risk.
The majority of equities are in a diversified portfolio of investments in corporations
listed in the PSE.
*SGVFS169521*
There has been no change in the Group’s strategies to manage its risks from previous
periods.
 Funding Arrangements and Expected Benefit Payment
There is no minimum funding requirement in the country.
The maturity profile of undiscounted expected benefits payments from the plan follows:
Group
2022 2021
Within one year P1,048,430
= P829,934
=
More than one year to five years 1,813,795 1,732,138
More than five years to ten years 3,162,944 2,900,740
More than ten years to 15 years 3,496,334 3,232,845
More than 15 years to 20 years 4,245,541 3,803,723
More than 20 years 9,593,251 8,990,049
=23,360,295
P =21,489,429
P
UnionBank Plan
2022 2021
Within one year P855,865
= P680,507
=
More than one year to five years 1,445,904 1,364,443
More than five years to ten years 2,488,192 2,296,339
More than ten years to 15 years 2,555,103 2,425,424
More than 15 years to 20 years 2,973,476 2,586,973
More than 20 years 7,092,184 6,584,739
=17,410,724
P =15,938,425
P
Former iBank Plan

2022 2021
Within one year P111,905
= P92,016
=
More than one year to five years 200,496 215,090
More than five years to ten years 366,961 345,267
More than ten years to 15 years 337,843 328,879
More than 15 years to 20 years 256,911 286,944
More than 20 years 104,205 156,389
=1,378,321
P =1,424,585
P
Former Citibank Consumer PH Business Plans
2022
Within one year =129,138
P
More than one year to five years 443,752
More than five years to ten years 842,952
More than ten years to 15 years 1,385,234
More than 15 years to 20 years 1,723,058
More than 20 years 3,321,125
=7,845,259
P
The weighted average duration of the defined benefit obligation is 16 years in 2022 and
19 years in 2021.
*SGVFS169521*
Income Taxes - 140 -
30. Income Taxes
Current and Deferred Income Taxes

The components of income tax expense (benefit) for the years ended December 31, 2022, 2021,
and 2020 are as follows:
Group
2022 2021 2020
Reported in profit or loss
Current tax expense:
Final tax =2,231,917
P =1,269,860
P =1,162,262
P
Regular corporate income tax
(RCIT) 1,333,468 826,288 706,944
MCIT 1,467 74,426 295,570
3,566,852 2,170,574 2,164,776
Deferred tax expense (benefit)
relating to origination and
reversal of temporary
differences 364,589 236,495 (1,383,396)
=3,931,441
P =2,407,069
P =781,380
P
Reported in other comprehensive
income
reversal of actuarial gains or
losses =93,191
P =193,286
P (P
=190,387)
Parent Bank
2022 2021 2020
Reported in profit or loss
Current tax expense:
Final tax =2,029,648
P =1,158,225
P =991,134
P
RCIT 108,513 35,941 18,358
MCIT − 74,108 292,860
2,138,161 1,268,274 1,302,352
reversal of temporary
differences 789,832 420,188 (1,232,987)
=2,927,993
P =1,688,462
P =69,365
P
Reported in other comprehensive

income
reversal of actuarial gains or
losses =84,180
P =174,589
P (P
=176,630)
*SGVFS169521*
The reconciliation of the statutory income tax rate and the effective income tax rate follows:
Group
2022 2021 2020
Statutory income tax rate 25.00% 25.00% 30.00%
Adjustment for income subjected to
lower income tax rates (3.20) (2.11) (3.04)
CREATE related adjustments − 6.25 −
Tax effects of:
FCDU income before tax (1.73) (17.72) (15.04)
Non-taxable income (0.89) (0.76) (17.04)
Non-deductible expenses 3.20 3.06 5.77
Others 1.29 2.34 5.69
Effective income tax rate 23.67% 16.06% 6.34%
Parent Bank
2022 2021 2020
Statutory income tax rate 25.00% 25.00% 30.00%
Adjustment for income subjected to
lower income tax rates (3.15) (1.97) (2.94)
CREATE related adjustments – 5.68 –
Tax effects of:
FCDU income before tax (1.86) (18.79) (16.38)
Non-taxable income (3.68) (0.27) (18.56)
Non-deductible expenses 3.31 2.07 5.69
Others (0.68) (0.23) 2.80
Effective income tax rate 18.94% 11.90% 0.61%
The components of the net deferred tax assets presented under Other resources (see Note 19) as
of December 31, 2022, and 2021 follow:
Group
2022 2021
Deferred tax assets:
Allowance for impairment P
=4,088,549 =3,154,151
P
Accrued other expenses 1,203,425 844,124
Net operating loss carry over (NOLCO) 477,682 1,031,132
Deferred service fees 405,965 313,598
Excess MCIT 368,069 589,621
Investment properties 353,181 312,034
Unrealized foreign exchange loss 169,644 107,845
Others 1,190,370 860,670
8,256,885 7,213,175
Deferred tax liabilities:
Unrealized foreign exchange gain 126,653 66,705
Capitalized interest 22,880 21,965
Others 184,112 77,900
333,645 166,570
Net deferred tax assets P
=7,923,240 =7,046,605
P
*SGVFS169521*
Parent Bank
2022 2021
Deferred tax assets:
Allowance for credit losses P
=3,055,124 =2,359,049
P
Accrued other expenses 1,196,466 814,379
Net operating loss carry-over (NOLCO) 466,729 1,025,934
Excess MCIT 366,968 588,491
Investment properties 276,990 301,229
Unrealized foreign exchange loss 169,646 103,683
Others 690,645 614,327
6,222,568 5,807,092
Deferred tax liabilities:
Unrealized foreign exchange gain 123,159 66,705
Capitalized interest 22,880 21,965
Others 111,632 41,140
257,671 129,810
Net deferred tax assets P
=5,964,897 =5,677,282
P
Other deferred tax asset includes post-retirement obligation and other future deductible items.
The Parent Bank’s NOLCO follows:
Year incurred Amount Expired Applied Balances Availment period

2018 P644,228
= P644,228
= =–
P =−
P 2019-2021
2019 1,736,818 – 1,736,818 − 2020-2022
2020 2,211,455 – 500,000 1,711,455 2021-2025*
2021 155,461 – − 155,461 2022-2026*
=4,747,962
P =644,228 =
P P2,236,818 =1,866,915
P
*The NOLCO can be carried over as a deduction from gross income for the next five consecutive taxable years from the year it was
incurred pursuant to Revenue Regulations No. 25-2020 (RR 25-2020), implementing Section 4(bbbb) of Republic Act No. 11494 or
the Bayanihan to Recover as One Act.
The Parent Bank’s MCIT follows:
Year incurred Amount Expired Applied Balances Availment period

2018 P182,501
= P182,501
= =–
P =−
P 2019-2021
2019 221,523 – 221,523 − 2020-2022
2020 214,453 – – 214,453 2021-2023
2021 152,515 – – 152,515 2022-2024
=770,992
P =182,501
P =221,523
P =366,968
P
The Parent Bank’s MCIT can be applied against regular corporate income tax liability for the
next three consecutive years after the MCIT was incurred.
Relevant Tax Regulations

Corporate Recovery and Tax Incentives for Enterprises (CREATE) Bill
As a result of the changes brought about by CREATE, applicable tax rates for future taxable and
deductible amounts for purposes of deferred tax measurement were reduced from 30% to 25%.
*SGVFS169521*
This resulted in a reduction in the provision for current income tax in 2021 by =
P156.36 million
and by =P78.41 million for the Group and the Parent Bank, respectively, that is recognized in the
2021 statement of income. In addition, as a result of the change in the tax rate, the deferred tax
balances have been remeasured from 30% to 25%, resulting in reduction in net deferred tax asset
of P
=1,156.01 million and = P948.86 million for the Group and the Parent Bank, respectively,
increase in provision for deferred income tax by = P1,088.04 million and P
=881.24 million for the
Group and the Parent Bank, respectively, in the 2021 statement of income, and decrease in other
comprehensive income by = P68.01 million and =P67.62 million for the Group and the Parent Bank,
respectively, in the 2021 statement of comprehensive income.
The following are the relevant tax regulations affecting the Group:
Income Tax
(a) MCIT, computed at 1% gross income from July 1, 2020 to June 30, 2023, net of allowable
deductions as defined under the tax regulations, or to RCIT of 25% effective July 1, 2020,
whichever is higher;
(b) FCDU transactions with non-residents of the Philippines are tax-exempt, while interest
income on foreign currency loans from residents other than depository banks under the
expanded system is subject to 10% income tax;
(c) Withholding tax of 15% is imposed on interest earned under the expanded foreign currency
deposit system; and,
(d) NOLCO can be claimed as deductions against taxable income within three years after
NOLCO is incurred. The excess of the MCIT over income tax due may be carried over to the
three succeeding taxable years and credited against income tax due provided the Bank is in
RCIT position. On September 30, 2020, the BIR issued Revenue Regulations No. 25-2020
implementing Section 4(bbbb) of Bayanihan to Recover as One Act which states that the
NOLCO incurred for taxable years 2020 and 2021 can be carried over and claimed as a
deduction from gross income for the next five (5) consecutive taxable years immediately
following the year of such loss.
Gross Receipts Tax

Banks are subject to gross receipts tax under Sec. 121 of the National Internal Revenue Code as
amended.
Documentary Stamp Tax

Documentary stamp taxes (DST) (at varying rates) are imposed on the following:
(a) Bank checks, drafts, or certificate of deposit not bearing interest, and other instruments;
(b) Bonds, loan agreements, promissory notes, bills of exchange, drafts, instruments and
securities issued by the Government of any of its instrumentalities, deposit substitute debt
instruments, certificates of deposits bearing interest and other not payable on sight or
demand;
(c) Acceptance of bills of exchange and letters of credit; and,
(d) Bills of lading or receipt.
*SGVFS169521*
Income Taxes and
Trust Operations - 144 -
The significant provisions relating to DST under TRAIN are summarized below:
(a) On every original issue of debt instruments, there shall be collected a DST of 1.50 on each
200 or fractional part thereof of the issue price of any such debt instrument; provided, that for
such debt instruments with terms of less than one year, the DST to be collected shall be of a
proportional amount in accordance with the ratio of its term in number of days to 365 days;
provided further that only one DST shall be imposed on either loan agreement or promissory
notes to secure such loan.
(b) On all sales or transfer of shares or certificates of stock in any corporation, there shall be
collected a DST of 1.50 on each 200, or fractional part thereof, of the par value of such stock.
(c) On all bills of exchange (between points within the Philippines) or drafts, there shall be
collected a DST of 0.60 on each 200, or fractional part thereof, of the face value of any such
bill of exchange or draft.
(d) The following instruments, documents and papers shall be exempt from DST:
 Borrowings and lending of securities executed under the Securities Borrowing and
Lending Program of a registered exchange, or in accordance with regulations prescribed
by the appropriate regulatory authority;
 Loan agreements or promissory notes, the aggregate of which does not exceed 250,000
or any such amount as may be determined by the Secretary of Finance, executed by an
individual for his purchase on installment for his personal use;
 Sale, barter or exchange of shares of stock listed and traded through the local stock
exchange (as amended by RA No. 9648);
 Fixed income and other securities traded in the secondary market or through an
exchange;
 Derivatives including repurchase agreements and reverse repurchase agreements;
 Bank deposit accounts without a fixed term or maturity; and,
 Interbank call loans with maturity of not more than seven days to cover deficiency in
reserve against deposit liabilities.
Itemized Deduction
In 2022, 2021 and 2020, the Parent Bank opted to claim itemized deductions.
31. Trust Operations
The following securities and other properties held by the Parent Bank in fiduciary or agency
capacity (for a fee) for its customers are not included in the accompanying statement of financial
position since these are not properties of the Parent Bank.
2022 2021
Investments P
=88,449,123 =86,667,533
P
Others 3,199,964 3,308,879
P
=91,649,087 =89,976,412
P
*SGVFS169521*
Trust Operations and
Related Party Transactions - 145 -
In compliance with the requirements of the General Banking Act relative to the Parent Bank’s
trust functions:
(a) Investment in government securities with a total face value of P

=1,210,600 and =P1,000,000 as
of December 31, 2022 and 2021, respectively, are deposited with BSP as security for the
Parent Bank’s faithful compliance with its fiduciary obligations (see Note 12); and,
(b) Ten percent of the Parent Bank’s trust income is transferred to Surplus reserves. This yearly
transfer is required until the surplus reserves for trust function is equivalent to 20% of the
Parent Bank’s authorized capital stock. No part of such reserves shall at anytime be paid out
as dividends, but losses accruing in the course of business may be charged against such
surplus. As of December 31, 2022 and 2021, the reserve for trust functions amounted to
=336,655 and P
P =304,961, respectively, and is included as part of Surplus reserves in the
statements of financial position (see Note 25).
Income from trust operations of the Group and the Parent Bank amounted to = P316,939,
=239,994, and =
P P171,271 in 2022, 2021 and 2020, respectively. These are shown as Income from
trust operations account under Miscellaneous income in the statements of income (see Note 28).
32. Related Party Transactions
The Group’s and Parent Bank’s related parties include subsidiaries, stockholders, key
management personnel and others as described below.
The Parent Bank’s transactions with related parties, except deposit transactions, are reviewed and
approved by the Bank’s RPT Management Review Committee (for non-material transactions),
endorsed by the RPT Board Committee, and ultimately approved or confirmed by the BOD. The
terms and prices are benchmarked against market prices, non-RPT transactions and on a cost-plus
basis as practiced by the market if market prices are not available. In other instances, valuations
are made by appraisers and third party consultants in determining prices.
The summary of the Group’s significant transactions with its related parties as of and for the
years ended December 31, 2022 and 2021 are as follows:
2022 2021
Amount Outstanding Amount Outstanding
Related Party Category of Transaction Balance of Transaction Balance Terms and Conditions/Nature
Applicable to the Parent Bank
Subsidiaries
Lease of properties:
Lease income = 33,550
P =−
P =34,069
P =− Lease renewed every 5 years
P
Refundable deposits 2,356 2,356 1,959 1,959 with 5% escalation rate
Project management fee,
management services,
commission and service
Management services 161,188 − 51,660 − charges paid to/by subsidiaries
Deposit liabilities:
Outstanding balance − 1,961,153 − 3,202,201
Net movements (1,241,048) − 1,779,947 −

With interest rate based on
Interest expense on deposits 76,410 − 2,530 − average daily bank deposit rate.
(Forward)
*SGVFS169521*
2022 2021
Related Party Category of Transaction Balance of Transaction Balance Terms and Conditions/Nature
Receivables purchase agreements:

Purchase of DepEd receivables
Purchase of receivables = 9,979,340
P =−
P =−
P =−
P from CSB
Sale of qualified Quick Loan
Sale of receivables 6,682,351 − − − Accounts to UnionDigital
Interbank borrowing
Short-term borrowing with
Net movements 3,000,521 − − − annual fixed rate ranging from
2.125% in 2022. No
outstanding balances as of
Interest expense 531 − − − 2022 and 2021.
Advances:
Various expenses advanced by
Outstanding balance − 79,573 − 71,201 the Bank
Net movements 8,372 − 54,906 −
Various expenses and service
Other liabilities − 375,978 − 38,411 fees
Applicable to the Group and the
Parent Bank
Stockholders and related parties
under common ownership
Outstanding balance − 6,709,215 − 25,459,765 With interest rate based on
Net movements (18,750,550) − 19,173,145 − average daily bank deposit rate
Interest expense on deposits 37,919 − 12,714 −
Bills payable:
Outstanding balance − 13,936 − 13,916
Long term liability with annual
Net movements 20 − 19 −
fixed rate of 4%
Interest expense 56,658 − 64,428 −
Income from bancassurance
business:
Income recognized on sale of
insurance policies in
accordance with the
Commission income 377,657 − 230,570 − bancassurance agreement
Unearned income from
Exclusive Access Fees arising
from the bancassurance
Unearned income − 715,710 − 733,333 agreement
Sale of Investment properties
Sales contract receivable 591,410 413,987 − −
Gain on disposal 226,901 − − − Sale of foreclosed property
Unearned income 52,004 52,004 − −
Secured borrowings with
annual interest of 8.0% and
Loans receivable (8,829) 909 9,738 9,738 12.0% in 2022 and 2021
Employee benefits related to
Key management personnel 2,973,832 − 2,460,301 − key management personnel.
Directors, officers and other
related interests:
Employee fringe benefit loans
with annual fixed interest rate
from 0.00% to 8.0% in 2022
Loans 639,635 639,635 535,780 535,780 and 2021
Fringe benefits related to
Accounts receivable 156,659 156,659 144,509 144,509 employee cars and laptop lease.
Outstanding receivables from and payables to related parties, if any, arising from lease of
properties, management services and advances are unsecured and generally settled in cash within
12 months or upon demand.
*SGVFS169521*
Lease of Properties
In February 2014, the Parent Bank entered into a lease agreement with UIC, whereby the latter,
as a lessee, leases one of the Parent Bank’s investment properties for a period of five years. In
October 2019, the lease agreement was amended to reduce the area of UIC’s leased premises
upon the renewal of the lease agreement. In 2022, the lease agreement was further amended to
reduce the area of UIC’s leased premises, reduce the number of parking slots and reduce the
rental rate upon the renewal of the lease agreement. UIC pays the Parent Bank a monthly rent of
=100 with 5% annual escalation rate, exclusive of VAT.
P
CSB leases certain investment properties with the Parent Bank with lease term covering five
years. CSB pays the Parent Bank a fixed monthly rent for its leases with 5% annual escalation
rate. In May 2020, CSB renewed one of its lease agreements for another five years.
In June 2019, the Parent Bank entered into a lease agreement with UBX for a period of five
years. UBX pays the Parent Bank a fixed monthly rent with 5% annual escalation rate.
Management Services
The Parent Bank entered into service agreements with CSB, UIC, FAIR Bank, PETNET, UBX,
and UnionDigital to perform to perform various services including corporate accounting, human
resource, legal, corporate secretarial, operations support, IT-related and data science.
Deposit Liabilities and Interest Expense

The deposit accounts of subsidiaries and stockholders with the Parent Bank generally earn
interest based on daily bank deposit rates.
Advances
The Parent Bank also has advances to CSB, FUIFAI, UnionDigital, CFSI, PETNET and UBX as
of December 31, 2022 and 2021. These are generally settled in cash upon demand.
Bills Payable and Interest Expense

In 2020, CSB availed of a loan with Aboitiz Foundation, Inc., amounting to =P14 million which is
payable in five years and bears an annual interest rate of 4.0%. This borrowing had an
outstanding balance of =P13.94 million and =
P13.92 million (net of unamortized debt issue costs)
as of December 31, 2022 and 2021, respectively.
In 2022 and 2021, CSB availed of short-term borrowings from AEVI, Aboitiz Power
Corporation, and Aboitiz and Co., Inc., related parties under common ownership, amounting to
=2.10 billion, =
P P23.82 billion, and nil, respectively, and =
P3.35 billion, =
P31.87 billion, and
=12.64 billion, respectively. Availments have been paid in full as of end of the reporting period.
P
Bancassurance Agreement
On January 27, 2017, the Parent Bank and its subsidiary, CSB, entered into a bancassurance
partnership (the Agreement) with Insular Life Assurance Company, Ltd. (Insular Life). Under
the Agreement, Insular Life paid the Parent Bank an amount representing Exclusive Access Fee
(EAF) with a term of 15 years. In the event that the cumulative annualized premium earned
(APE) sold during the first five-year period is less than the agreed minimum amount, the Parent
Bank shall refund the proportion of EAF that equals the proportion by which the cumulative APE
is less the minimum amount. As of December 31, 2022, there are ongoing negotiations on a
revised agreement and is currently being reviewed by the parties.
*SGVFS169521*
EAF recognized for 2022 is presented as Commission from bancassurance under Service charges,
fees and commissions account in the statements of income. Unearned income arising from this
transaction is presented as Unearned Income - bancassurance under Other liabilities account in
the statements of financial position (see Note 24).
Under the distribution agreement, Insular Life will have exclusive access to the branch network
of the Parent Bank and CSB. Additionally, the Parent Bank’s sales force, composed of
relationship managers and financial advisors, shall be trained and licensed to sell life insurance
products. Under the same Agreement, the Parent Bank shall earn commissions on all insurance
policies sold by the Parent Bank. Commissions earned in 2022 and 2021 are presented as part of
Commissions from bancassurance under Service charges, fees and commissions account in the
statements of income (see Note 27).
Receivables Purchase Agreements

Department of Education (DepEd) Loans
On February 28, 2022, the Parent Bank entered into an agreement with CSB to purchase, in a true
sale and without recourse basis, and for cash consideration, certain DepEd loans in one or more
tranches for up to a maximum outstanding principal amount of P =10 billion. The Parent Bank
completed the purchase of the first tranche of receivables with outstanding principal of
=99.31 million on April 8, 2022, and the second tranche of receivables with outstanding principal
P
of P
=9.98 billion on July 4, 2022.
Quick Loans
On August 1, 2022 (the “Effective Date”), the Parent Bank entered into an agreement (the
“Agreement”) with UnionDigital to sell, in a true sale and without recourse basis, and for cash
consideration, loan accounts from the Parent Bank’s Quick Loans portfolio that are existing and
granted as of the Effective Date and during the Term of the Agreement, which pass the eligibility
criteria including the credit score, borrower profile, loan tenors and terms acceptable to
UnionDigital. The Agreement shall remain valid and subsisting until terminated by the Parties as
defined and allowed under the Agreement. The total outstanding principal sold to UnionDigital in
2022 amounted to = P6.68 billion.
Sale of Investment Properties

In June 2022, the Parent Bank sold to Lima Land, Inc., a related party under common ownership,
parcels of foreclosed land with carrying value of =
P312.50 million for a consideration of
=591.41 million, payable until 2027. The Bank recognized Gain on disposal of investment
P
properties amounting to =P226.91 million and Unearned income of P =52.00 million on the date of
sale. As of December 31, 2022, the sales contract receivable had an outstanding balance of
=413.99 million.
P
Key Management Personnel Compensation

The compensation of key management personnel for the Group and Parent Bank follows:
Group
2022 2021 2020
Short-term benefits P
=2,565,550 =2,298,705
P =2,097,510
P
Post-employment benefits 197,044 91,915 103,265
Other long-term benefits 211,238 69,681 13,163
P
=2,973,832 =2,460,301
P =2,213,938
P
*SGVFS169521*
Parent Bank
2022 2021 2020
Short-term benefits P
=2,126,299 =1,885,566
P =1,783,964
P
Post-employment benefits 182,200 74,477 87,882
Other long-term benefits 205,565 63,703 7,786
P
=2,514,064 =2,023,746
P =1,879,632
P
Directors’ fees incurred by the Group amounted to =

P130,788, =
P141,415, and =
P91,830 in 2022,
2021 and 2020, respectively, and by the Parent Bank amounted to =
P100,687, =
P118,039, and
=80,010 in 2022, 2021 and 2020.
P
Loans and Other Transactions

In the ordinary course of business, the Group has loans, deposits and other transactions with its
related parties and with certain DOSRI. Under the Group’s existing policies, these transactions
are made substantially on the same terms and conditions as transactions with other individuals
and businesses of comparable risks. The amount of individual loans to DOSRI, of which 70%
must be secured, should not exceed the amount of the deposit and book value of their investment
in the Group. In the aggregate, loans to DOSRI generally should not exceed the total equity or
15% of the total loan portfolio of the Group, whichever is lower.
The following additional information is presented relative to DOSRI loans:

Group Parent Bank
2022 2021 2022 2021
Total DOSRI loans P
=640,544 =545,518
P P
=616,127 P507,225
=
Unsecured DOSRI loans 272,992 247,341 263,012 223,880
% of DOSRI loans to total loan portfolio 0.13% 0.16% 0.16% 0.18%
% of unsecured DOSRI loans
to total DOSRI loans –% –% –% –%
% of past due DOSRI loans
to total DOSRI loans –% –% –% –%
% of non-accruing DOSRI accounts to total
DOSRI loans –% –% –% –%
The total unsecured DOSRI loans above include loans extended to employees treated as fringe
benefits that are excluded in determining the compliance with the individual ceiling under
subsection X330.1 of the MORB. Accordingly, the percentage of unsecured DOSRI loans to
total DOSRI loans as presented above is nil.
On January 31, 2007, BSP issued Circular No. 560 which provides the rules and regulations that
govern loans, other credit accommodations and guarantees granted to subsidiaries and affiliates
of banks and quasi-banks. Under the said circular, the total outstanding exposures to each of the
Parent Bank’s subsidiaries and affiliates shall not exceed 10% of bank’s net worth, the unsecured
portion of which shall not exceed 5% of such net worth. Further, the total outstanding exposures
to subsidiaries and affiliates shall not exceed 20% of the net worth of the lending bank.
Transactions with the Retirement Plan

The retirement fund of the Group covered under defined benefit post-employment plan
maintained for qualified employees is administered by the Retirement Committee. The members
of the Retirement Committee are Senior Executives and officers of the Parent Bank as approved
by the Chairman/Chief Executive Officer. Through its Retirement Committee, it has appointed
TISG as one of its trustees for the retirement fund which is covered by trust agreements.
*SGVFS169521*
The composition of the retirement plan assets in the actuarial valuation reports of the Parent Bank
and its subsidiaries as of December 31, 2022 and 2021 are disclosed in Note 29. As of
December 31, 2022 and 2021, total assets of the retirement plan managed by the TISG of the
Parent Bank as contained in the actuarial valuation reports amounted to =P4.03 billion and
=4.16 billion, respectively.
P
As of December 31, 2022 and 2021, the carrying value of the fund is equivalent to its fair value.
The Parent Bank and its subsidiaries’ retirement plans have transactions directly and indirectly
with the Parent Bank as of December 31, 2022 and 2021 as follows:
2022 2021
of Transaction Balance of Transaction Balance
Investment in Parent Bank shares =75,094
P =352,208
P =90,904
P =277,114
P
Investments in Parent Bank notes payable:
Net movements (125,375) − 35,792 −
Interest income 17,093 − 23,393 −
Accrued interest income − 6,486 − 2,232
Net movements (45,819) − 40,684 −
Interest income on deposits 11,397 − 12,427 −
Dividend income 9,064 − 9,064 −
The investment in Parent Bank shares are primarily held for re-sale and the Group’s retirement
fund does not intend to exercise its voting rights over those shares. The terms of the investment
in notes payable are discussed in Note 23.
Group Health Insurance from a Related Party
The Parent Bank entered into a contract with Insular Life for its group health insurance. The
group health insurance package amounted to = P166,093 and = P122,774, covering October 2021 to
September 2022 and October 2020 to September 2021, respectively.
Receivable from Kingswood Project

UIC acts as the project and fund manager of Kingswood Project. As fund manager, UIC is
responsible for the treasury and money management as well as arranging the necessary facilities
and accounting for the development of the project. UIC also receives a certain percentage of the
sales price related to Kingswood Project as sales commission and to compensate for the
marketing expenses incurred. As of December 31, 2022 and 2021, the receivable of UIC from
Kingswood Project amounted to = P33.2 million and =P29.30 million, respectively.
*SGVFS169521*
Earnings Per Share - 151 -
33. Earnings Per Share
In 2022, 2021 and 2020, the Group and the Parent Bank have no outstanding potentially dilutive
securities, hence, basic earnings per share are equal to diluted earnings per share.
As a result of the stock dividends declared by the Parent Bank on August 11, 2021 to
stockholders of record as of December 9, 2021 and paid on January 5, 2022 (see Notes 25 and
36), the weighted average number of outstanding common shares have been adjusted
retrospectively. As required under PFRS, the Bank is required to adjust the weighted average
number of shares for purposes of computing the basic earnings per share for all periods presented
when there are stock dividends are issued after reporting period but before the financial
statements have been authorized for issue.
The basic and diluted earnings per share were computed as follows:
Group
2022 2021 2020
Net profit attributable to Parent
Bank’s stockholders P
=12,529,248 =12,525,376
P =11,553,430
P
Divided by:
Weighted average number of
outstanding common shares 1,911,431 1,219,289 1,218,400
Adjustment related to stock
dividend − 304,839 304,839
outstanding common shares,
after adjustment for stock
dividends 1,911,431 1,524,128 1,523,239
Basic and diluted earnings
per share P
=6.55 =8.22
P =7.58
P
Parent Bank
2022 2021 2020
Net profit P
=12,529,248 =12,525,376
P =11,263,423
P
Divided by:
outstanding common shares 1,911,431 1,219,289 1,218,400
Adjustment related to stock
dividend − 304,839 304,839
outstanding common shares,
after adjustment for stock
dividends 1,911,431 1,524,128 1,523,239
Basic and diluted earnings
per share P
=6.55 =8.22
P =7.39
P
*SGVFS169521*
Commitments and Contingent Liabilities - 152 -
34. Commitments and Contingent Liabilities
Leases
Group as Lessee
The Group leases various branch premises for an average period of seven years. The lease
contracts are cancellable upon mutual agreement of the parties or renewable at the Parent Bank’s
option under certain terms and conditions. Various lease contracts include escalation clauses,
most of which bear an annual rent increase of 5%. Some leases include a clause to enable
adjustment of the rental charge on an annual basis based on prevailing market rates. As of
December 31, 2022 and 2021, the Parent Bank has neither a contingent rent payable nor an asset
restoration obligation in relation with these lease agreements.
Shown below is the maturity analysis of the undiscounted lease payments as of December 31,
2022 and 2021 as required by PFRS 16:
Group Parent Bank

2022 2021 2022 2021
1 year or less =532,912
P =544,131
P =419,854
P =422,382
P
more than 1 years to 2 years 391,940 432,768 307,215 335,421
more than 5 years 22,077 33,895 16,331 324
The following are the amounts recognized in profit or loss for the years ended December 31,
2022 and 2021:
Group Parent Bank

2022 2021 2022 2021
Amortization expense of ROU assets
(Note 16) P
=620,499 =597,637
P P
=464,534 =410,595
P
Interest expense on lease liabilities
(Note 24) 67,851 68,753 56,240 54,763
Expenses relating to short term – leases 171,523 130,223 132,394 152,513
Total amount recognized in profit or loss P
=859,873 =796,613
P P
=653,168 =617,871
P
Group as Lessor
The Group has entered into commercial property leases on the Group’s surplus offices. These
non-cancellable leases have remaining non-cancellable lease terms of one to four years.
Total rent income earned included under Miscellaneous income account in the statements of
income (see Note 28) by the Group and the Parent Bank for the years ended December 31, 2022,
2021 and 2020 are as follows:
2022 2021 2020

Group P218,019
= P116,450
= P154,077
=
Parent Bank 154,907 132,734 164,177
*SGVFS169521*
Commitments and Contingent Liabilities and
Notes to the Statements of Cash Flows - 153 -
The estimated minimum future annual rentals receivable under non-cancellable operating leases
follows:
Group
2022 2021
Within one year P
=142,891 =121,058
P
Beyond one year but within five years 257,160 242,240
P
=400,051 =363,298
P
Parent Bank
2022 2021
Within one year P
=133,423 =107,316
P
Beyond one year but within five years 246,878 229,575
P
=380,301 =336,891
P
Others
In the normal course of the Group’s operations, there are various outstanding commitments and
contingent liabilities such as guarantees, commitments to extend credit, which are not reflected in
the accompanying financial statements. The Group recognizes in its books any losses and
liabilities incurred in the course of its operations as soon as these become determinable and
quantifiable. Management believes that, as of December 31, 2022, no additional material losses
or liabilities are required to be recognized in the accompanying financial statements as a result of
the above commitments and transactions.
There are several suits, assessments or notices and claims that remain unsettled. Management
believes, based on the opinion of its legal counsels, that the ultimate outcome of such suits,
assessments and claims will not have a material effect on the Group’s and the Parent Bank’s
financial position and results of operations.
35. Notes to the Statements of Cash Flows
Presented below is the supplemental information on the Group’s and the Parent Bank’s liabilities
arising from financing activities:
Group
Notes and Bonds Lease
LTNCD Bills Payable Payable Liabilities* Total
Balances at January 1, 2022 = 3,000,000
P = 51,168,138
P = 69,853,986
P = 1,382,880
P = 125,405,004
P
Cash flows from financing activities:
Additions − 306,504,535 13,904,476 − 320,409,011
Repayment of borrowings − (225,725,630) (38,183,199) (659,030) (264,567,859)
Non-cash financing activities:
Effects of foreign exchange rate
changes − 899,746 5,982,985 − 6,882,731
New lease arrangements − − − 567,389 567,389
Effect of business combination − − − 65,440 65,440
Amortization of debt issue costs
and accretion of interest − − 86,077 67,851 153,928
Balances as of December 31, 2022 = 3,000,000
P = 132,846,789
P = 51,644,325
P = 1,424,530
P = 188,915,644
P
*additions to lease liabilities arising from initial recognition of ROU assets are considered non-cash financing
activities
*SGVFS169521*
Notes to the Statements of Cash Flows - 154 -
Group
Balances at January 1, 2021 =3,000,000
P =54,223,543
P =59,853,656
P =1,219,584
P =118,296,783
P
Additions − 127,075,530 11,057,895 − 138,133,425
changes − 1,116,175 2,403,418 − 3,519,593
Balances as of December 31, 2021 =3,000,000
P =51,168,138
P =69,853,986
P =1,382,880
P =125,405,004
P
*additions to lease liabilities arising from initial recognition of ROU assets are considered non-cash financing activities
Parent Bank
Balances at January 1, 2022 = 3,000,000
P = 28,577,774
P = 69,789,836
P = 1,043,850
P = 102,411,460
P
Additions − 247,352,242 10,932,289 − 258,284,531
changes − 899,745 5,948,623 − 6,848,368
Effect of business combination − − − 59,777 59,777
Balances as of December 31, 2022 = 3,000,000
P = 99,309,124
P = 51,644,325
P = 1,177,555
P = 155,131,004
P
Parent Bank
Balances at January 1, 2021 =3,000,000
P =34,502,422
P =59,746,856
P =1,004,057
P =98,253,335
P
Additions − 62,765,158 7,650,000 − 70,415,158
Repayment of borrowings − (69,805,980) − (446,112) (70,252,092)
changes − 1,116,174 2,380,651 − 3,496,825
Balances as of December 31, 2021 =3,000,000
P =28,577,774
P =69,789,836
P =1,043,850
P =102,411,460
P
Non-cash investing activities of the Group for the years ended December 31, 2022 and 2021 include
additions to investment properties in settlement of loans and receivables amounting to =
P376.49 million
and P
=245.00 million, respectively, and disposals of properties with carrying values of =
P1,482.10 million
and P
=87.63 million, respectively, through sales contract receivables.
*SGVFS169521*
Events After the End of the Reporting Period - 155 -
36. Events After the End of the Reporting Period
Reclassification of Financial Assets at FVOCI into Financial Assets at Amortized cost

The acquisition of Citigroup Inc.’s consumer banking business in the Philippines (the
Acquisition) in August 2022 substantially altered the Parent Bank’s balance sheet composition on
both the asset and liability side. The Acquisition resulted in significant increase in the Parent
Bank’s consumer loan and the Parent Bank expects that its foray into consumer segment will
continue to increase in the coming years. The Acquisition resulted in significant change in the
FCDU deposit profile and together with the existing diversified funding structure in the FCDU
resulted in the change in the management of financial assets in the FCDU moving forward and
allowing the FCDU to hold investment securities to maturity.
These developments have led the Parent Bank to reevaluate its asset and liability management
strategies and proactively manage its balance sheet and ensure that its capital remain adequate
and stable. Existing bank assets, including those in the FVOCI Business Model have been
reviewed on how they should be managed moving forward, including the re-assessment on their
accounting classification and the related impact to capital. As a result of these substantial
changes in the balance sheet, the Parent Bank has determined that there have been fundamental
changes to its existing business model for managing FVOCI securities. As part of the Parent
Bank’s governance process, the business model change has been presented to the Market Risk
Committee and Risk Management Committee for review, and for approval and endorsement to
the BOD. In line with this, the Parent Bank’s BOD in its meeting held on December 16, 2022,
approved the reclassification of FCDU FVOCI (excluding the FX Liquidity sub-portfolio) to
FCDU HTC.
As required by PFRS 9, the reclassification was effected prospectively on January 1, 2023, the
first day of the reporting period following the change in business model. The reclassification on
January 1, 2023 resulted in (1) the decrease in FCDU FVOCI securities with fair value of
$903.21 million (P =50.36 billion), (2) reversal of related net unrealized fair value losses on
FVOCI amounting to $185.36 million (P =10.33 billion) and (3) increase in FCDU HTC financial
assets at amortized cost amounting to $1.09 billion (P =60.69 billion), as if the investment
securities had always been carried at amortized cost.
Dividend Declaration
On February 1, 2023, the Parent Bank’s BOD approved the declaration of cash dividends at
=2.00 per share for a total of =
P P4,707,549 in favor of all stockholders of the Bank, payable from
the unrestricted retained earnings of the Bank as of December 31, 2022. Record date for
stockholders entitled to the cash dividend is February 15, 2023 and payment is expected to be
made on February 27, 2023.
Issuance of Shares through Stock Rights

On February 6, 2023, the Bank issued approximately 210.97 million common shares priced at
=56.88 per share. The shares were offered to eligible shareholders as of the record date of
P
January 12, 2023 at a ratio of 1 rights share for every 10.1536 existing common shares. The
newly issued shares were listed on the PSE on the same date.
Issuance of Shares under the Employee Stock Plan

The Parent Bank issued 697,339 common shares to qualified employees under the Parent Bank’s
Employee Stock Payment Plan on February 6, 2023.
*SGVFS169521*
Supplementary Information Required Under Revenue Regulations 15-2010 - 156 -
37. Supplementary Information Required Under Revenue Regulations 15-2010
Presented below is the supplementary information required by the Bureau of Internal Revenue
(BIR) under RR 15-2010 to be disclosed as part of the notes to financial statements. This
supplementary information is not a required disclosure under PFRS.
Gross Receipts Tax

In lieu of the value-added tax (VAT), the Parent Bank is subject to the GRT imposed on all banks
and non-bank financial intermediaries pursuant to Section 121 of the Tax Code.
The Parent Bank reported total GRT amounting to = P1.81 billion in 2022 as shown under Taxes
and Licenses account. Total GRT payable as of December 31, 2022 amounted to P =0.64 billion
and is included as part of Accrued taxes and other expenses under Other liabilities account in the
2022 statement of financial position.
Documentary Stamp Tax

The Bank is enrolled under the Electronic DST System. In general, the Parent Bank’s DST
transactions arise from the execution of debt instruments, security documents, and bills of
exchange.
For the year ended December 31, 2022, DST affixed amounted to =
P2.20 billion.
Withholding Taxes
The details of total withholding taxes for the year ended December 31, 2022 are shown below:
Final =1,221,197
P
Expanded 265,820
Compensation and benefits 1,356,221
=2,843,238
P
Taxes and Licenses

The details of taxes and licenses in 2022 of the Parent Bank are as follows:
GRT =1,805,035
P
DST 799,397
Real property tax 35,250
Fringe benefit tax (FBT) 59,041
Local and business permits 38,143
Miscellaneous 61,012
Less:
FBT charged to employee benefits 59,041
=2,738,837
P
Excise Taxes
The Parent Bank does not have excise taxes accrued since it did not have any transactions subject
to excise tax.
Other Required Tax Information
The Parent Bank has not paid or accrued any excise taxes or customs’ duties and tariff fees as it
had no importation for the year ended December 31, 2022.
The Parent Bank has no pending tax assessment and case in courts or other regulatory bodies
outside of the BIR as at December 31, 2022.
*SGVFS169521*
Supplementary Information Required Under BSP Circular 1074 - 157 -
38. Supplementary Information Required Under BSP Circular 1074
Presented below is the supplementary information required by the BSP under BSP Circular 1074.
Basic quantitative indicators of financial performance
Group 2022 2021 2020

Return on average capital funds:
Net profit
9.7% 11.6% 11.5%
Average total capital funds*
Return on average resources:
Net profit 1.3% 1.6% 1.5%

Average total resources*
Net interest margin:
Net interest income 4.9% 4.6% 4.5%

Average interest-earning resources*
Liquidity ratio:
Current Assets 49.63% 53.9% 56.3%

Current Liabilities
Debt-to-equity ratio:
Liabilities 6.4:1 6.4:1 6.4:1

Equity
Asset-to-equity ratio:
Asset 7.4:1 7.4:1 7.4:1

Equity
Interest rate coverage ratio:
Earnings before interests

and taxes 2.4:1 3.3:1 2.2:1
Interest expense
*Average amount is calculated based on current year-end and previous year-end balances
*SGVFS169521*
Parent Bank 2022 2021 2020

Return on average capital funds:
Net profit 9.7% 11.6% 11.1%

Average total capital funds*
Return on average resources:
Net profit 1.5% 1.6% 1.6%

Average total resources*
Net interest margin:
Net interest income 4.2% 3.9% 4.0%

Average interest-earning resources*
Liquidity ratio:
Current Assets 48.51% 50.6% 55.4%

Current Liabilities
Debt-to-equity ratio:
Liabilities 5.5:1 5.5:1 5.6:1

Equity
Asset-to-equity ratio:
Asset 6.5:1 6.5:1 6.6:1

Equity
Interest rate coverage ratio:
Earnings before interests

and taxes 2.8:1 4.3:1 2.5:1
Interest expense
*Average amount is calculated based on current year-end and previous year-end balances
*SGVFS169521*
Capital instruments issued

The Parent Bank’s capital instruments consist of the following:
Capital stock
As of December 31, 2022 and 2021, the Parent Bank has outstanding capital stock shown below
(peso amounts in thousands):
Shares Amount
2022 2021 2022 2021
Common – P=10 par value
Authorized 2,530,785,238 2,530,785,238 P
=25,307,852 =25,307,852
P
Issued and outstanding
As at beginning of the year 1,219,362,818 1,218,471,467 12,193,628 12,184,715
Shares issued 922,743,946 891,351 9,227,440 8,913
As at end of the year 2,142,106,764 1,219,362,818 21,421,068 12,193,628
Preferred – P
=100 par value, non-voting
Authorized 100,000,000 100,000,000 P
=10,000,000 =10,000,000
P
Issued and outstanding – – – –
Unsecured Subordinated Tier 2 Notes Due 2030 Callable in 2025

The Basel III-compliant Unsecured Subordinated Tier 2 Notes were issued by the Parent Bank
under its BSP-approved issuance of ₱20.0 Billion Unsecured Subordinated Notes Qualifying as
Tier 2 Capital.
Unless the Notes are previously redeemed, the Initial Interest Rate will be reset at the equivalent
of the Initial Spread per annum plus the Benchmark as of Reset Date as defined in the Terms
and Conditions of the Notes. Subject to certain conditions, the BSP Guidelines, and the Terms
and Conditions, the Parent Bank may redeem the Notes in whole and not only in part on the
Redemption Option Date at 100% of the face value of the Notes, plus accrued and unpaid
interest as of but excluding the Redemption Option Date.
The Notes have a loss absorption feature which means the Notes are subject to a Non-Viability
Write-Down in case of a Non- Viability Trigger Event. A Non-Viability Trigger Event is
deemed to have occurred when the Issuer is considered non-viable as determined by the BSP.
The Tier II Notes constitute a direct, unconditional, fixed, unsecured and subordinated
obligation of the Bank. Claims in respect of the Tier II Notes will rank: (a) junior to the claims
of holders of all deposits and general creditors of the Bank; (b) pari passu with obligations of
the Bank that are, expressly or by applicable laws, subordinated so as to rank pari passu with
claims in respect of securities constituting “Tier 2” capital of the Bank; and (c) senior to (i) the
claims for payment of any obligation that, expressly or by applicable law, is subordinated to the
Tier II Notes, (ii) the claims in respect of securities constituting “Tier 1” capital of the Bank,
and (iii) the rights and claims of holders of equity shares of the Bank.
*SGVFS169521*
Concentration of credit exposures

An analysis of concentrations of credit risk for loans and other receivables and investment
securities (grossed up for any allowance for credit losses and unearned discounts) of the Group
and the Parent Bank by industry and by geographic location as of December 31, 2022 and 2021 is
shown below (amounts in thousands):
Group
2022
Trading and
Loans and Other Receivables Investment
Amount % Securities Total
Concentration by industry
Financial and insurance activities = 34,819,473
P 7.07 = 451,417,807
P = 486,237,280
P
Real estate activities 90,231,828 18.33 7,150,000 97,381,828
Information and communication 35,095,786 7.13 – 35,095,786
Wholesale and retail trade, repair of
motor vehicles 32,282,632 6.56 – 32,282,632
Manufacturing 28,515,108 5.79 2,665,228 31,180,336
Transportation and storage 21,836,091 4.44 1,884,539 23,720,630
Arts, entertainment and recreation 12,627,793 2.57 – 12,627,793
Electricity, gas steam and air conditioning supply 13,090,565 2.66 24,106,204 37,196,769
Other service activities 15,924,128 3.24 2,845,681 18,769,809
Construction 6,110,416 1.24 – 6,110,416
Activities of households as employers and
undifferentiated goods and services 4,320,351 0.88 – 4,320,351
Agriculture, forestry and fishing 2,284,137 0.46 – 2,284,137
Accommodation and food service activities 1,540,725 0.31 – 1,540,725
Professional, scientific and technical activities 472,896 0.10 – 472,896
Other consumption 97,556,795 19.82 – 97,556,795
Others 95,486,796 19.40 2,782,659 98,269,455
= 492,195,520
P 100.00 = 492,852,118
P = 985,047,638
P
Concentration by location
Philippines = 492,195,520
P 100.00 = 398,026,315
P = 890,221,835
P
Others - Asia – – 23,944,279 23,944,279
South America – – 6,061,624 6,061,624
North America – – 7,441,164 7,441,164
United States – – 50,591,184 50,591,184
Europe – – 6,787,552 6,787,552
= 492,195,520
P 100.00 = 492,852,118
P = 985,047,638
P
*SGVFS169521*
Group
2021
Trading and
Financial and insurance activities =31,360,342
P 9.00 =369,049,548
P =400,409,890
P
motor vehicles 31,380,275 9.00 – 31,380,275
Manufacturing 27,322,891 7.84 2,531,824 29,854,715
Electricity, gas steam and air conditioning supply 13,690,875 3.93 25,214,821 38,905,696
Other service activities 7,918,474 2.27 – 7,918,474
Construction 4,337,687 1.24 – 4,337,687
Others 70,333,736 20.18 3,360,048 73,693,784
=348,584,409
P 100.00 =410,298,448
P =758,882,857
P
Philippines =348,584,409
P 100.00 =298,874,158
P =647,458,567
P
Others - Asia – – 29,545,178 29,545,178
South America – – 5,622,054 5,622,054
North America – – 9,725,349 9,725,349
United States – – 54,686,572 54,686,572
Europe – – 11,845,137 11,845,137
=348,584,409
P 100.00 =410,298,448
P =758,882,857
P
Parent Bank
2022
Trading and
Financial and insurance activities = 40,015,301
P 10.01 = 401,020,548
P = 441,035,849
P
motor vehicles 31,351,303 7.85 – 31,351,303
Manufacturing 28,359,410 7.10 2,665,228 31,024,638
Other service activities 15,761,449 3.94 2,845,681 18,607,130
Electricity, gas steam and air conditioning
supply 13,090,425 3.28 24,106,204 37,196,629
Construction 5,993,159 1.50 – 5,993,159
Others 1,542,640 0.39 2,782,659 4,325,299
= 399,592,951
P 100.00 = 442,454,859
P = 842,047,810
P
Philippines = 399,592,951
P 100.00 = 347,629,056
P = 747,222,007
P
Others - Asia – – 23,944,279 23,944,279
South America – – 6,061,624 6,061,624
North America – – 7,441,164 7,441,164
United States – – 50,591,184 50,591,184
Europe – – 6,787,552 6,787,552
= 399,592,951
P 100.00 = 442,454,859
P = 842,047,810
P
*SGVFS169521*
Parent Bank
2021
Trading and
Financial and insurance activities =31,284,376
P 11.05 =325,797,652
P =357,082,028
P
motor vehicles 30,431,511 10.74 – 30,431,511
Manufacturing 27,198,763 9.6 2,531,824 29,730,587
Electricity, gas steam and air conditioning
supply 13,690,729 4.83 25,214,821 38,905,550
Other service activities 7,730,986 2.73 – 7,730,986
Construction 4,251,467 1.50 – 4,251,467
Agriculture, forestry and fishing 372,018 0.13 – 372,018
Other consumption 11,752,569 4.15 11,752,569
Others 8,775,218 3.10 3,246,816 12,022,034
=283,229,259
P 100.00 =366,933,320
P =650,162,579
P
Philippines =283,229,259
P 100.00 =255,509,030
P =538,738,289
P
Others - Asia – – 29,545,178 29,545,178
South America – – 5,622,054 5,622,054
North America – – 9,725,349 9,725,349
United States – – 54,686,572 54,686,572
Europe – – 11,845,137 11,845,137
=283,229,259
P 100.00 =366,933,320
P =650,162,579
P
Breakdown of total loans as to security and status

As to security
The breakdown of total loans and other receivables (net of unearned discounts) as to secured,
with corresponding collateral types, and unsecured loans follows (amounts in thousands):
Group Parent Bank

2022 2021 2022 2021
Secured:
Real estate P
=12,265,747 =10,306,870
P P
=10,408,920 =8,781,142
P
Deposit hold-out 374,133 441,795 331,529 404,783
Chattel mortgage 84,735 484,577 – 430,580
Others 66,576,638 35,608,038 65,419,101 35,572,532
79,301,253 46,841,280 76,159,550 45,189,037
Unsecured 414,872,194 326,866,206 327,230,996 256,429,206
P
=494,173,447 =373,707,486
P P
=403,390,546 =301,618,243
P
The breakdown as to secured and unsecured of non-accruing loans of the Group and the Parent
Bank as of December 31 follows:
Group Parent Bank

2022 2021 2022 2021
Secured =8,869,679
P =4,657,991
P =8,706,112
P =4,310,580
P
Unsecured 13,010,007 14,291,767 5,014,561 8,564,337
=21,879,686
P P18,949,758
= =13,720,673
P =12,874,917
P
*SGVFS169521*
As to status
Non-performing loans (NPLs) of the Group and the Parent Bank as of December 31, 2022 and
2021 are presented below, net of the related allowance for credit losses in compliance with BSP
Circular 855, respectively (amounts in thousands).
Group Parent Bank

2022 2021 2022 2021
Gross NPLs P
=21,879,686 P18,949,758
= P
=13,720,673 =12,874,917
P
Specific allowance for credit losses on NPLs (10,791,956) (10,072,401) (6,951,092) (7,529,574)
P
=11,087,730 =8,877,357
P P
=6,769,581 =5,345,343
P
Under BSP Circular 941, an account or exposure is considered non-performing, even without any
missed contractual payments, when it is deemed impaired under existing applicable accounting
standards, classified as doubtful or loss, in litigation, and/or there is evidence that full repayment
of principal and interest is unlikely without foreclosure of collateral, in the case of secured
accounts. All other accounts, even if not considered impaired, shall be considered non-
performing if any contractual principal and/or interest are past due for more than ninety (90)
days, or accrued interests for more than 90 days have been capitalized, refinanced, or delayed by
agreement.
Microfinance and other small loans with similar credit characteristics shall be considered non-
performing after contractual due date or after it has become past due. Restructured loans shall be
considered non-performing. However, if prior to restructuring, the loans were categorized as
performing, such classification shall be retained.
Non-performing loans, investment, receivables, or any financial asset (and/or any replacement
loan) shall remain classified as such until (a) there is a sufficient evidence to support that full
collection of principal and interests is probable and payments of interest and/or principal are
received for at least six (6) months; or (b) written-off.
Information on the amounts of performing and non-performing loans and receivables (gross of
allowance for impairment and credit losses) per product line of the Group and Parent Bank are as
follows:
Group
2022 2021
PerformingNon-Performing Total Performing Non-Performing Total
Corporate loans = 130,325,055
P = 174,917
P = 130,499,972
P =117,506,723
P =1,167,863
P =118,674,586
P
Consumer products* 95,958,602 3,243,884 99,202,486 15,700,041 2,419,612 18,119,653
Commercial loans 71,273,065 3,959,433 75,232,498 66,908,763 3,033,984 69,942,747
Home loans 59,923,287 5,736,182 65,659,469 52,407,938 5,806,732 58,214,670
CSB salary loans 58,843,468 5,185,814 64,029,282 42,268,532 3,356,560 45,625,092
Other receivables from
customers** 42,292,399 3,579,456 45,871,855 26,146,411 3,165,007 29,311,418
Total receivables from
customers = 458,615,876
P = 21,879,686
P = 480,495,562
P =320,938,408
P =18,949,758
P P
=339,888,166
*SGVFS169521*
Parent Bank
2022 2021
PerformingNon-Performing Total Performing Non-Performing Total
Corporate loans = 130,325,055
P = 174,917
P P
= 130,499,972 =117,506,723
P =1,167,863
P =118,674,586
P
Consumer products* 95,958,602 3,243,884 99,202,486 15,700,041 2,419,612 18,119,653
Commercial loans 71,273,065 3,959,433 75,232,498 66,908,763 3,033,984 69,942,747
Home loans 59,923,287 5,736,182 65,659,469 52,407,938 5,806,732 58,214,670
Other receivables from
customers** 19,395,834 606,257 20,002,091 13,575,477 446,726 14,022,203
Total receivables from
customers = 376,875,843
P = 13,720,673 P
P = 390,596,516 =266,098,942
P =12,874,917
P =278,973,859
P
Related party loans

As of December 31, 2022 and 2021, the Group’s and the Parent Bank’s related party loans solely
consist of DOSRI loans, as shown below (peso amounts in thousands):
Group Parent Bank

2022 2021 2022 2021
Total DOSRI loans =640,544
P =545,518
P =616,127
P =507,225
P
Unsecured DOSRI loans 272,992 247,341 263,012 223,880
Total related party loans (including 640,544 545,518 616,127 507,225
DOSRI loans)
Unsecured related party loans 272,992 247,341 263,012 223,880
(including DOSRI loans)
% of DOSRI/related party loans to total
loan portfolio 0.13% 0.16% 0.16% 0.18%
% of unsecured DOSRI/related party
loans to total DOSRI loans –% –% –% –%
% of past due DOSRI/related party
loans to total DOSRI loans –% –% –% –%
% of non-accruing DOSRI/related party
accounts to total DOSRI loans –% –% –% –%
The total unsecured DOSRI loans above include loans extended to employees treated as fringe
benefits that are excluded in determining the compliance with the individual ceiling under
subsection X330.1 of the MORB. Accordingly, the percentage of unsecured DOSRI loans to
total DOSRI loans as presented above is nil.
Secured liability and assets pledged as security

The Group’s and the Parent Bank’s bills payable under repurchase agreements amounted to
=78.23 billion and =
P P18.67 billion as of December 31, 2022 and 2021, respectively.
Investment securities of both the Group and the Parent Bank with carrying values of
=106.71 million and =
P P23.47 million as of December 31, 2022 and 2021, respectively, were
pledged against bills payable under repurchase agreement.
*SGVFS169521*
Commitments and contingencies

Following is a summary of the Group and Parent Bank’s commitments and contingent accounts
(amounts in thousands):
Group Parent Bank

2022 2021 2022 2021
Trust department accounts =91,649,087 P
P =89,976,412 =91,649,087 P
P =89,976,412
Forward exchange bought 74,853,141 31,946,925 74,853,141 31,946,925
Forward exchange sold 25,708,489 22,392,884 25,708,489 22,392,884
Commitments 50,820,675 61,930,576 50,773,475 61,840,156
Inward bills for collections 17,307,197 13,342,960 17,307,197 13,342,960
Other derivatives 13,801,894 12,738,173 13,801,894 12,738,173
Unused standby letters of credit 8,986,154 5,849,338 8,986,154 5,849,338
Spot exchange bought 3,378,510 1,332,437 3,378,510 1,332,437
Spot exchange sold 3,530,275 4,086,222 3,530,275 4,086,222
Outstanding guarantees issued 1,426,923 1,208,727 1,426,685 1,208,675
Other commitment and contingent accounts 111,295 64,607 48,960 10,910
*SGVFS169521*

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About UnionBank

PURPOSE DISTINGUISHING BELIEFS

VALUES EMPLOYER BRAND

UnionBank 2022 Annual Report

02 UnionBank DNA 18 Client Feature: 26 Client Feature: 42 Banking Every Filipino

60 The CEO Awardees 2022 122 Products & Services

62 Subsidiaries 134 Brick & Mortar

66 Risk Management 140 Management Directory

70 Corporate Governance 144 Corporate Information

108 Corporate Social 145 Credits

Total Assets 1,092.7 831.1 967.0 727.5 Others

UnionBank and PSEi Rebased Stock Performance

(Base: 2017 Last Trading Date)

479.7 711.3 52.2 31.5 14.0

Return on Return on Cost-to-Income Earnings Book Value Total Capital

UnionBank 2022 Annual Report

BUILDING A BANK OF ENDURING GREATNESS

UnionBank 2022 Annual Report

“We successfully integrated the Citi consumer business into UnionBank

UnionBank 2022 Annual Report

WE ARE NOW GOING FOR GOLD!

UnionBank 2022 Annual Report

To address local inflationary pressures, the Bangko Sentral ng Pilipinas

“In 2022, we delivered a net income of P12.7 billion, which largely

UnionBank 2022 Annual Report

MARVIN TIU LIM,

UnionBank 2022 Annual Report

UnionBank 2022 Annual Report

DICK & MARS BALAJADIA

UnionBank 2022 Annual Report

UnionBank 2022 Annual Report

for Small Stores

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RENE “RJ” ALETA LEDESMA, JR.

UnionBank 2022 Annual Report

UnionBank 2022 Annual Report

UnionBank 2022 Annual Report

UnionBank 2022 Annual Report

UnionBank completed its $1.3 billion takeover of Citi’s retail

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FUTURE OF BANKING Inaugurated in September 2022, the UnionBank Innovation

UnionBank 2022 Annual Report

MSMEs have a more difficult time getting loans to help

finance department to handle banking transactions.

BIG LEAP FOR Breakthrough Solution

MSMEs that require digital check-writing just need to make

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BANKING EVERY FILIPINO online through their mobile phones.

EVERYWHERE The timing of UnionDigital Bank’s launch could not be

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Going Big on Blockchain

UnionBank 2022 Annual Report

UnionBank 2022 Annual Report

UnionBank 2022 Annual Report

UnionBank 2022 Annual Report

UnionBank has proactively developed skills and experience

Events like the Spooktacular 2022 Halloween Event featured

UnionBank 2022 Annual Report

These programs are a testament to UnionBank’s culture

The Asian Banker Global The Asset Triple A