Guidelines on the Adoption of Philippine Financial Reporting Standard (PFRS) 9 - Financial Instruments and Financial Reporting Package for Non-Stock Savings and Loan Associations (FRPNSSLA)

BANoKo SeNrnlL NG Ptutplruas OFFICE OF THE GOVERNOR ctRcutAR No. 1047 Series of 2Ol9 Subject: Guidelines on the Adoption of Philippine Financial Reporting Standard (PFRS) 9 - Financial Instruments and Financial Reporting Package for Non-Stock Savings and loan Associations (FRpNSSIA] The Monetary Board, in its Resolution No. 1167 dated 0l August zOLg, approved the guidelines governing the adoption of PFRS 9 - Financial Instruments and the Financial Reporting Package for Non-Stock Savings and Loan Associations: Section 1. Subsection 41615.1 of the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI) is hereby amended to read, as follows: "E 41615.1 Philippine Finonciol Reporting Stondards (4FRS). Policy Statement lt is the thrust of the Bangko Sentral to align its financial reporting requirements with standards and practices that are widely accepted internationally to promote fairness, transparency, and accountability in the financial industry. In this light, the Bangko Sentral is issuing guidelines governing the adoption of the PFRS, aimed at ensuring consistency of application and comparability of financial reports across the industry. a' Adoption of PFRS. Non-Stock Savings and Loan Association (NSSLAs) shall adopt the PFRS in recording transactions and in the preparation of financial statements and reports to the Bangko Sentral. However, in cases where there are differences between Bangko Sentral regulations and PFRS as when more than one (1) options are allowed, or certain maximum or minimum limits are prescribed by PFRS, the option or limit prescribed by the Bangko Sentral shall be adopted by NSSLAs. b. Preparation of prudential reports. For prudential reporting, NSSLAs shall adopt the PFRS in the following cases: (1) Preparation of solo financial statements as provided in Appendix 5-76. (2) Recognition of allowance for credit losses (ACL). NSSLAs shall at all times recognize adequate and timely ACL and shall adopt the principles provided under the Enhanced Standards on Credit Risk Management under Section - 419L5 as well as the provisions of Appendix 5-9 of the MORNBFI in measuring credit losses. c. Preporation of Audited Finoncial Statements (AFS). AFS shall be pFRS-compliant and shall be submitted to the Bangko Sentral in accordance with the provisions of Section 4L725 and Subsection 41725.1 of the MORNBFI. NSSLAs shall submit to the Bangko Sentral adjusting entries reconciling the balances in the financial statements for prudential reporting with that in the AFS. A.Mobini St.,Molofe l0o4Monilo,Philippines . (6321708-7701 o www.bsp.gov.ph . [email protected]

d. Guidelines on the odoption of PFRS 9 Finoncial lnstruments. NSSLAs should have adopted, as part of the PFRS framework, PFRS 9: Financial Instruments upon its mandatory effectivity date of 01 January 2018. For this purpose, NSSLAs shall be governed by the following: (1) Consistent with the duties and responsibilities of the board of trustees (board) provided under Subsections4L4LS.4 and 41415.5 of the MORNBFt, the board, shall ensure that the NSSLA appropriately and consistently adopts PFRS 9 as part of its reporting governance process. In this respect, the board shall assess the impact of PFRS 9 on business strategies and risk management systems and ensure availability of sufficient resources, including capacity building initiatives, in adopting the standard. The board shall approve policies and guidelines relative to the adoption of PFRS 9, whlch shall cover responsibilities of the different units in the NSSLA as well as the extent of participation or involvement of third parties in the adoption process. The board shall likewise ensure that adequate control measures are in place to ensure the integrity of reports. (2) Management shall implement the policies set by the board related to the adoption of PFRS 9 and ensure that sound professionaljudgment is exercised in implementing the provisions of the standard. Management shall provide feedback to the board on the effectiveness of implementation of PFRS 9. (3) NSSLAs shall be guided by the provisions of Appendix S-77 on "Guidelines on the Adoption of Philippine Financial Reporting Standards 9 (PFRS 9) - classification and Measurement" and Appendix s-9 on "lmpairment" in implementing the provisions of pFRS 9. e. Supervisory Enforcement Action. Consistent with the provisions of Sec. 4009e, the Bangko Sentral reserves the right to deploy its range of supervisory tools and enforcement actions to promote adherence to the standards and principles set forth in these guidelines, bring about timely corrective actions and compliance with the Bangko Sentral directives and ensure that NSSLAS operate in a sound, lawful and orderly manner. In this respect, the Bangko Sentral may issue directives or impose sanctions on the NSSLA and/or its trustees, officers and/or employees concerned for noted supervisory issues on the adoption of pFRS 9. Prudential reports affected by non-adherence to the provisions of this Subsection shall be subject to penalties/sanctions provided under Subsection 41525.3 of the MORNBFI. f . Tronsitory Provisions. NSSLAs shall observe the following transition rules: (1) NSSLAs shall apply PFRS 9, retrospectively, in accordance with the transition requirements and guidance provided under PFRS 9 and Philippine Accounting Standards (PAS) I "Chonges in Accounting Policies, Chonges in Accounting Page2 of 4

Estimates ond Errors". NSSLAs shall be guided by the provisions of PAS 8 if the retrospective application is impracticable. (2) An NSSLA is expected to conrply with the reportorial and disclosure requirements of the Securities and Exchange Commission on the adoption of PFRS 9." Section 2. Subsection 41615.2 is hereby amended to read as follows: '9 4161S.2 Financial Reporting Pockagel, ln line with the adoption of the PFRS, NSSLAs are required to adopt the Manual of Accounts prescribed under the Financial Reporting Package for Non-Stock Savings and Loan Associations (FRPNSSLA) for prudential reporting purposes2. The general features as well as the impf ementing guidelines of the FRPNSSLA is provided in Appendix 5-76. The FRPNSSLA shall become effective starting with the reporting quarter-ending 31 March 2020, and shall be submitted to the appropriate supervising department of the Bangko Sentral in the manner, and within the period, prescribed under Appendix S-2. Said report shall be classified as Category A-1 Report." Section 3. Section 41815 of the MORNBFI is hereby amended to read, as follows: "Sec. 41815 Publicotion Requirements. NSSLAs shall, within 120 calendar days after the close of the calendar year or their fiscal year, as the case may be, furnish the Monetary Board and post in any of the NSSLAs' bulletin boards or in any other conspicuous place a copy of their financial statements showing, in such form and detail as the Monetary Board shall require, the amount and character of the assets and liabilities of the NSSLAs at the end of the preceding calendarfiscal year. The Monetary Board may, in addition to the foregoing, require the disclosure of such other information as it shall deem necessaryforthe protection of the members of the NSSLA. Tronsitory Provisions. Parallel runs of the FRPNSSLA and the existing Consolidated Statement of Condition and Consolidated Statement of Income and Expenses shall be conducted on a quarterly basis for the reporting periods ending 30 September and 31 December 2019. During the parallel runs covering the said reporting periods, the Consolidated Statement of Condition and Consolidated Statement of Income and Expenses shall be electronically transmitted by NSSLAs to the Bangko Sentral on or before the end of the immediately following month while the FRPNSSLA shall be submitted to the Bangko Sentral within forty-five (45) calendar days after the end of reference quarter. lfthe 45th calendar day falls on a Saturday, Sunday or Holiday, or on a day which business operations of the Bangko Sentral is suspended, the following business day shall apply. During the reporting periods wherein the parallel runs shall be conducted, existing penalties under Subsection 41625.3 of the MoRNBFI shall not be imposed for late and/or erroneous submission of FRpNSSLA while said penafties shall continue to be imposed for late and/or erroneous submission of the Consolidated Statement of Condition and Consolidated Statement of Income and Expenses. Upon effectivity of the FRpNSSLA, the penalties prescribed under Subsection 41625.3 of the MORNBFI shall be imposed for late and/or erroneous submission of FRPNSSLA. Refer to Annex A of this Circular. Page 3 of4

Section 4. Subsection 43055.5 of the MORNBFI is amended to read, as follows: "5 43055.5 Accruol of interest eorned on loons ond other credit accommodotions. Accrual of interest earned on non-performing loans and other credit accommodations shall not be allowed." Section 5. Subsection 43915.3 of the MORNBFI is amended to read, as follows: "9 43915.3 Marking to morket ol linoncial instruments. Financial instruments that are required to be classified and measured at fair value, within the scope of PFRS 9 under Appendix 5-17, shall be marked-to-market in accordance with the provisions of pFRS 13 on Fair Value Measurement and the related rules and regulations issued by the Securities and Exchange Commission (SEC). Investments in debt instruments shall be marked-to-market following the guidelines set out in Appendix e-20a. NSSLAs and the concerned officers found to have violated the provisions of these regulations shall be subject to supervisory enforcement actions under item e of Subsec. 4L6LS.L." Section 6. Appendices 5-16, and S-17, as shown as Attachment l, and ll respectively, are hereby inserted as Appendix to the MORNBFI. Section 7. Appendix S-2 is hereby amended as shown in Attachment lll. Section 8. Effectivity. This Circular shalltake effect fifteen (15)calendar days following its publication either in the Official Gazette or in a newspaper of general circulation. FORTHE MONETARY BOARD: CHIG. FONACIER fficer-in-Charge 21 xgust 2019 Atts.: a/s

Attachment I APPENDIX S.15 Financial Reporting Package for Non-Stock Savings and Loan Associations (FRPNSSLAI (Appendix to Subsection 47675.2) The FRPNSSLA is a set of financial statements for prudential reporting purposes composed of the Balance Sheet, Income Statement and Supporting Schedules. The FRPNSSLA is primarily designed to align the Bangko Sentral ng Pilipinas (BSP) reportorial requirements with the provisions of the Philippine Financial Reporting Standards (PFRS). lt is also designed to meet the statistical requirements of the Bangko Sentral. Organization of the Instructions of the FRPNSSLA The instruction is divided into the following sections: 1. The General Instructions, which describe the overall reporting requirements; 2. Manual of Accounts, which provides in the order presented in the Balance Sheet and the Income Statement the definitions of the accounts in the FRPNSSLA; 3. Line ltem Instructions for the Balance Sheet, lncome Statement and Supporting Schedules; and 4. Report Formats. In determining the required treatment of particular transactions or in determining the definitions of the various items, the General Instructions, Manual of Accounts and Line Item Instructions must be used jointly. A single section does not necessarily give the complete instructions for completing all items of the reports. GENERAT INSTRUCTIONS Who must Report on What Forms/Schedules All Non-Stock Savings and Loan Associations (NSSLAs) are required to prepare the Financial Reporting Package. The FRPNSSLA shall be prepared on a solo basis. Solo basis shall refer to the combined financial statements of the head office and branches/other offices of the NSSLA. Solo income statement shall be prepared quarterly on a cumulative basis, i.e., first quarter report shall cover results of operations during the first quarter, second quarter report shall cover results of operations during the first and second quarters, etc. Schedules that do not apply to a particular NSSLA should only be left blank when submitted.

Attachment I APPENDIX 5.16 Frequency of Reporting The FRPNSSLA shall be prepared and submitted quarterly within thirty (30) calendar days after the end of the reference quarter. lf the 30th calendar day falls on a Saturday, Sunday or Holiday, or on a day which business operations of the Bangko Sentral is suspended, the following business day shall apply. Amounts Reported All amounts reported in the FRPNSSLA must be in absolute figures including two decimal places, except for "Losses" columns/rows which shall be reported in negative figures, i.e., enclosed in parentheses. Page2 of 2

Attachment ll APPENDIX S.17 Guidelines on the Adoption of Philippine Financial Reporting Standards (PFRS 9l - Classification and Measurement (Appendix to Subsection 47675.1) Section 1. Classification and Measurement of Financial Assets and Financial liabilities Non Stock Savings and Loan Associations (NSSLAs) shall classify and measure financial assets and financial liabilities, in accordance with the provisions of pFRS 9. In this respect, NSSLAs shall observe the following: A. Classification of Financial Assets - Financial assets shall be classified based on their contractual cash flow characteristics and the business model for holding the instruments. Financiol ossets thot ore debt instruments. Financial assets that are debt instruments shall be classified under any of the following categories: al Financial Assets at Fair Value through Other Comprehensive Income (FVOCI). A financial asset measured at FVOCI shall meet both of the following conditions: The financial asset is held within a business modet whose objective is achieved by both collecting contractual cash flows and selling financial assets; and o The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest ($PPl) on the principal amount outstanding. bl Financial assets measured at amortized cost. A financial asset that is a debt instrument, other than those that are designated at fair value through profit or loss, which meet both of the following conditions: o The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and o The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. B. Classification of Financial liabilities - Financial liabilities shall be classified and subsequently measured at amortized cost using the effective interest method. Section 2. Business Model in Managing FinancialAssets Business model pertains to the manner by which a portfolio of financial assets will be managed to generate cash flows such as by collecting contractual cash flows or by both collecting contractual cash flows and selling the financial assets, among others. NSSLAs shall determine the business model for a portfolio of financial assets based on scenarios that are Page 1 of4

reasonably expected to occur, taking into consideration the expected changes to asset allocations or to balance sheet structure as a result of business strategies. In this respect, these scenarios do not include "worst case" or "stress case" scenarios. a) The criteria that will be used in determining the business model for managing financial assets shall be applied to a portfolio of financial assets and not on an instrument-by-instru ment basis. b) Business models for managing financial assets shall be observed through specific activities being undertaken by the NSSLA to achieve their stated objectives. An NSSLA shall exercise sound judgment and shall use all relevant evidences available at the date of assessment in determining the business model for managing portfolios of financial assets. Such relevant evidences include but are not limited to: o Risks affecting the performance of financial assets and the business model and how these risks will be managed; Frequency, volume, timing and nature of sales in prior periods, the reasons for such sales, and expectations about future sales activity; The manner by which business model and the financial assets held within it are evaluated and reported to the NSSLA's board of trustees and senior management; and The basis for compensation of concerned personnel and/officers (e.g., whether the compensation is based on the fair value of the assets managed or the contractual cash flows collected). c) Business models for managing financial assets shall be approved by the board of trustees and shall be adequately documented. The documentation for each business model shall include, among others, detailed description of specific business objectives (whether to hold in order to collect contractual cashflows and to sell or to collect contractual cashflows only); cases of sales and/or derecognition of financial assets and conditions for changes in business model that are considered consistent with the provisions of PFRS 9; and appropriate level of authority designated to approve determination of business model of specific portfolios of financial assets as well as the sales, derecognition, and changes in business model of financial assets. d) Changes in business model are expected to be rare and shall be determined as a result of external or internal changes which are significant to the NSSLA,s operations and evident to external parties. Change in intention related to the management of particular financial assets does not constitute a change in business model. The change in business model shall be approved by the appropriate level of authority based on sound justifications and in accordance with accounting standards. The qualitative and quantitative impact of the change in business model shall be adequately documented and appropriately disclosed in the audited financial statements in line with the disclosure of risk management policies on the relevant risk exposure. Page2 of 4

e ) All affected financial assets shall be reclassified when, and only when, a NSSLA changes its business model for managing financial assets in accordance with the provisions of ltem "(d)". Financial liabilities are not allowed to be reclassified. lf cash flows are realized in a way that is different from the expectations at the date at which the NSSLA assessed the business model, it does not constitute a change in the classification of the remaining financial assets as long as the NSSLA considered all relevant and objective information available when it initially made the buslness model assessment. In cases where an NSSLA changes a business model, the financial assets within the said model shall not be reclassified within the reporting period that the change in business model was made. The reclassification in this case shall only take effect in the next financial reporting month. In this respect, any previously recognized gains, losses or interest shall not be restated. Section 3. Contractual Cash Flow Characteristics a) In order for a financial asset to be classified and measured at amortized cost or FVOCI, the contractual terms of the financial asset must give rise on specific dates to cash flows that are SPPI on the principal amount outstanding. b) The cashflows that are considered SPPI are consistent with basic lending arrangement where the principal is the fair value of the financial asset at initial recognition and the interest represents consideration for the time value of money, credit risk, profit margin and other basic lending risks and costs associated with holding the financial asset for a particular period of time. c) An NSSLA shall determine if the contractual cashflows are SPPI in accordance with the provisions of PFRS 9. ]n this respect, an NSSLA shall assess the contractual terms of a financial instrument before investing in the same and determine if such instrument introduces exposure to risks or volatility that is unrelated to a basic lending arrangement. d) Policies and procedures shall include guidelines in performing the SPPI assessment, and shall identify the units responsible for conducting and reviewing the propriety of the assessment as well as the documentation supporting the classification of financial assets. Section 4. Supervisory Expectations on Classification and Measurement of Financial Assets and Financial liabilities a) The business model for managing financial assets shall be assessed in line with the NSSLA's internal risk management policies such as credit, market and liquidity risk management. For instance, financial assets which were classified and measured at Page 3 of4

amortized cost mostly relate to the management of credit risk and/or interest rate risk since there is no intent to sell the financial asset prior to maturity. b) The business model for managing financial assets shall be assessed based on the objective information on the activities undertaken for the portfolios of financial assets. c) The manner by which the performance of financial assets is measured given a specific business model shall be assessed. Key performance indicators should be consistent with the specific business models for portfolios of financial assets. For instance, performance of financial assets classified at amortized cost may be measured through (net) interest income since the objective is to generate accrual income from long-term investments. The results of the impairment testing and credit review of accounts may likewise be considered. d) Bases for incentives or compensation granted to personnel involved in managing specific portfolios of financial assets shall be evaluated in line with the expected activities under a specific business model. e) The roles and responsibilities of units involved in the management, monitoring, and reporting of performance of financial assets for specific business models shall be clearly defined. The Bangko Sentral shall assess the effective implementation of the lines of defense, which shall include the evaluation of the propriety of segregation of functions. The delineation of the roles and responsibilities of the lines of defense shall be evaluated as well as the effectiveness of the scope and frequency of their review. These lines of defense are expected to evaluate consistency of internal policies and practices with the provisions of PFRS 9 and adherence of the N55LA with established policies. f) The review of the lines of defense shall cover, among others, the assessment of the following: i. Comprehensiveness of reports submitted to the board or senior management. These should include the risks that may affect the performance of the business model; consistency of the performance of the financial assets held within the business model against strategic and financial objectives; and results of internal and external validation on management and monitoring of business model. ii . Propriety of sales or derecognition of financial assets based on the business model for managing the same. For instance, the NSSLA decides to sell a portion of a portfolio of financial assets held and measured at amortized cost, a review should be conducted to ascertain whether the business models has not changed as a result of such sale. In case of change in business model, the self-assessment functions shall look into the circumstances that triggered the decisions to change, consistency of said decision with internal policies and principles of the standard, propriety of the governance process, and adequacy of documentation.

Attachment lll APPEI{DIX 92 TIST OF REPORTS REqUIRTD FROM NON-STOCK SAVINGS AND LOAN ASSOCIATIONS (Appendix to Section 47625) Caterorv Form No. Ref. MOR Report Title Freouencv Submission Deadline Submission procedure A-1 4162s Financial Reporting Package for NSStAs quarterly within 30 calendar days after sdcnssla- (FRPNSSIAS) end of the reference quarter [email protected] (lf the 3dh calendar day fa s Ealance Sheet and Control Prooflist on a Saturday, Sunday o. Holiday, or on a day which Income Statement and Control Proof,ist business oDerations of the Bantko Sentral is suspended. khedules: the following business da! shallapply.) 1- Due from Banks 2- Loans and Receivables 3- Interest Rate and Residual Maturity Matching 4- NSSLA Premises, Furniture, Fixture and Equipment 5- Realand Other Properties Acquired (ROPA)/Non-current Assets Held For Sale (NCAHS) 6 - Membership Profile 6-4- Breakdown of Capital Contribution

ANNEX A FINANCIAL REPORTING PACKAGE FOR NON-STOCK SAVINGS AND LOAN ASSOCIATIONS (Updated as of 15 July 2019)

GENERAT INSTRUCTIONS Who must Report on What Forms/Schedules 6 Frequency of Reporting 7 Amounts Reported 7 MANUAT OF ACCOUNTS Asset Accounts Cash on Hand 8 Checks and Other Cash ltems (COC|) 8 Due from Banks 8 Debt Securities at Fair Value Through Other Comprehensive Income (FVOCI) 8 Debt Securities at Amortized Cost 9 Loans and Receivables 10 Loans to Individualfor Housing Purposes Loans to Individual Primarily for personal Use Purposes Loans to Individualfor Other purposes Loans to Corporate Members Sales Contract Receivable LT Accrued Interest lncome from Financial Assets L2 NSSLA Premises, Furniture, Fixture and Equipment t2 Land Building Furniture and Fixtures Information Technology (tT) Equipment Other Office Equipment Transportation Equ ipment Leasehold Rights and lmprovements NSSLA Premises, Furniture, Fixture and Equipment Under Finance Lease Revaluation lncrement Building Under Construction Real and Other Properties Acquired (ROPA) L4 Non-Current Assets Held for Sale (NCAHS) 15 Goodwill 15 Other Intangible Assets 15 Deferred Tax Asset 1.5 Other Assets 15 MANUAT OF ACCOUNTS tiability Accounts Deposit Liabilities 18 Bills Payable 18 Accrued Interest Expense on Financial Liabilities 19

Finance Lease Payment Payable 19 Due to Bangko Sentral ng Pilipinas 19 Income Tax Payable 1_9 Other Taxes and Licenses Payable 19 Accrued Other Expenses 19 Unearned lncome 19 Deferred Tax Liabilities 19 Provisions 19 Other Liabilities 20 MANUAT OF ACCOUNTS Equity Accounts Capital Contributions 2T Fixed Capital Capital Contribution Buffer Retained Earnings 2L Retained Earnings Reserve Retained Earnings Free Undivided Profits 22 Other Comprehensive Income 22 Revaluation I ncrement Reserve 23 MANUAT OF ACCOUNTS lncome Statement Account Interest lncome 23 lnterest Expense 23 Provision for Losses and Accrued Interest- Income From FinancialAssets 23 Fees and Commissions Income 23 Gains/(Losses) from Sale/Redemption/Derecognition of Non- Trading Financial Assets and Liabilities 24 Ga i ns/( Losses) from Sa le/Derecogn ition of N on- Financial Assets/Liabilities 24 Other Income 24 Rental lncome Miscellaneous Income Com pensation/Fringe Benefits 24 Salaries and Wages Fringe Benefits Trustee's Fees SSS, Philhealth and Employees' Compensation Premium and PAG-IBlG Fund Contributions

Medical, Dental and Hospitalization Contribution to Retirement/Provident Fund Provision for Pensions and Other Post Retirement Benefits Taxes andLicenses 25 Other Administrative Expenses 25 Rent Power, Light and Water Postage, Telephone, Cables and Telegrams Repairs and Maintenance Security, Clerical, Messengerial and Janitorial Services I nformation Technology Expenses Supervision Fees Insurance Expenses Management and Other Professional Fees Representation and Entertainment Travelling Expenses Fuel and Lubricants Advertising and Publicity Membership Fees and Dues Donations and Charitable Contributions Periodicals and Magazines Documentary Stamps Used Stationery and Supplies Used Fines, Penalties and Other Charges Litigation/Assets Acquired Expenses Other Expenses Dep reciation/Amortization 27 lmpairment Loss 27 Provisions - Others 27 Provisions for Credit Losses on Loans and Receivables and Other Financial Assets 27 Bad Debts Written Off 27 Recovery on Charged-Off Assets 28 Income Tax Expense 28 MANUAT OF ACCOUNTS Contingent Accounts Late Deposit Payment Received 28 Items Held for Safekeeping/Custody 28 Items Held as Collateral 28 Deficiency Claims Receivable 28 Other Contingent Account 28

LINE ITEM INSTRUCTIONS Schedule 1 Due from Banks 28 Schedule 2 Loans and Receivables 28 Schedule 3 lnterest Rate and Residual Maturity Matching 30 Schedule 4 NSSLA Premises, Furniture, Fixture and Equipment 31 Schedule 5 Real and Other Properties Acquired (ROPA)/ Non-current Assets Held For Sale (NCAHS) 31 Schedule 6 Membership Profile 31 Schedule 6-4 Breakdown of Capital Contribution 32 REPORT FORMATS 33

THE FINANCIAT REPORTING PACKAGE FOR NON-STOCK SAVINGS AND LOAN ASSOCIATIONS (FRPNSSTAI The FRPNSSLA is a set of financial statements for prudential reporting purposes composed of the Balance Sheet, lncome Statement and Supporting Schedules. The FRPNSSLA is primarily designed to align the Bangko Sentral ng Pilipinas (BSP) reportorial requirements with the provisions of the Philippine Financial Reporting Standards (PFRS). lt is also designed to meet the statistical requirements of the Bangko Sentral. Orsanization of the tnstructions of the FRPNSSLA This instruction book is divided into the following sections: (1) The General lnstructions, which describe the overall reporting requirements; (2) Manual of Accounts, which provides in the order presented in the Balance Sheet and the Income Statement the definitions of the accounts in the FRPNSSLA; (3) Line ltem Instructions for accomplishing the Balance Sheet, Income Statement and Supporting Schedules; and (4) Report Formats In determining the required treatment of particular transactions or in determining the definitions of the various items, the General Instructions, Manual of Accounts and Line ltem lnstructions must be used jointly. A single section does not necessarily give the complete instructions for completing all items of the reports. GENERAT INSTRUCTIONS Who must Report on What Forms/Schedules All Non-Stock Savings and Loan Associations (NSSLAs) are required to prepare the Financial Reporting Package. The FRPNSSLA shall be prepared on a solo basis. Solo basis shall refer to the combined financial statements of the head office and branches/other offices of the NSSLA. The FRPNSSLA shall be prepared on a quarterly basis. Solo income statement shall be prepared quarterly on a cumulative basis, i.e., first quarter report shallcover results of operations duringthe first quarter, second quarter report shallcover results of operations during the first and second quarters, etc. Schedules that do not apply to a particular NSSLA should only be left blank when submitted.

Frequencv of Reporting The FRPNSSLA shall be submitted quarterly within thirty (30) calendar days after the end ofthe reference quarter. Amounts Reported All amounts reported in the FRPNSSLA must be in absolute figures including two decimal places, except for "Losses" columns/rows which shall be reported in negative figures, i.e., enclosed in parentheses.

MANUAL OF ACCOUNTS BAIANCE SHEET ACCOUNTS Asset Accounts (1) Cash on Hand - This refers to the total amount of cash in the form of notes and coins under the custody of the cashier/cash custodian or treasurer, including notes in the possession of tellers and those kept in vault and Automated Tellering Machines, as applicable. (21 Checks and Other Cash ltems (COCll - This refers to the total amount of checks drawn on banks and other cash items received during the day for deposit on the following banking day. This account may consist of checks and Philippine Postal Money Orders. All COCIs shall be presented for clearance/acceptance/settlement on the following banking day. ltems excluded herein are the following: o Postdated Checks o COCIs received on collection basis o Out-of-town Checks not collectible through established clearing channels o ltems returned from clearing o All other cash items not in process of collection (3) Due from Banks - This represents balances of deposit accounts maintained with banks in the form of demand, savings, and/or time deposits but excluding balances in closed banks or banks under liquidation which should be recorded as other assets. Checks issued/drawn in payment of obligation shall immediately reduce the balance of this account. The aggregate value of such checks or any portion thereof shall not be reverted to, nor form part of the balance of this account unless such checks are subject to a stop payment order or are otherwise cancelled by the NSSLA or returned by the payee/drawer concerned or have become stale in accordance with the existing rules and regulations. At the end of each month, bank reconciliation should be prepared for each bank account. Separate subsidiary ledger accounts shall be maintained such as but not limited to Demand, Savings, and Time deposits. lf an account is for a specific purpose (e.g., withdrawable share reserve), the same shall be indicated in the ledger. Allowance for Credit Losses - This refers to the cumulative amount of impairment loss that has been incurred on Due from Banks. (4) Debt Securities at Fair Value Through Other Comprehensive Income (FVOCll - This refers to debt securities which meet both the following conditions: o The debt security is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding. Upon initial recognition, it shall be measured at fair value plus transaction costs that are directly attributable to the acquisition of securities. Subsequently, a gain or loss arising from a change in the fair value of the debt security shall be recognized directly in equity under the account "Net Unrealized Gains/(Losses) on Debt securities at FVocl" and reflected in the statement of changes in equity, except for impairment losses, until the financial asset is derecognized, at which time the cumulative gain or loss previously recognized in equity shall be recognized in profit or loss. However, interest calculated using the effective interest method is recognized in profit or loss. Unamortized Discount/Premium - Thls refers to the unamortized discount/ premium on debt securities measured at Fvocl, which shall be debited/credited monthly based on the effective interest method with the corresponding credit/debit to "lnterest Income-Debt Securities Measured at FVOCt". Accumulated Market Gains/(Losses) - This refers to cumulative gains/(losses) arising from change in the fair value of Debt Securities Measure at FVOCI. The contra cumulative account is "Net Unrealized Gains/(Losses) on Debt Securities at FVocl", which is a separate component of equity. This account is added (in case of net gain) or deducted (in case of net loss) from the Debt Securities Measured at FVOCI account. (s) Debt Securities at Amortized Cost - This refers to debt securities that meet both of the following conditions: o The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractuar cash flows; and o The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Debt Securities at Amortized cost shall be measured upon initial recognition at their fair value plus transaction costs that are directly attributable to the acquisition of the securities. After initial recognition, an NSSLA shall measure debt securities at their amortized cost using the effective interest method. A gain or loss arising from the change in the fair value of the debt security at amortized cost shall be recognized in profit or loss when the security is derecognized or impaired, and through the amortization process. unamortized Discount/Premium - This refers to the unamortized discount/premium on debt securities at amortized cost, which shall be debited/credited monthly based on the effective interest method with the corresponding credit/debit to "lnterest Income- Debt Securities at Amortized Cost".

Allowance for Credit Losses - This refers to the cumulative amount of impairment loss that has been incurred on debt securities at amortized cost. An association shall recognize credit impairment/allowance for credit losses even before an objective evidence of impairment becomes apparent. NSSLAs shall consider past events, current conditions, and forecasts of future economic conditions in assessing impairment. The amount of loss shall be measured based on existing regulations. (6) Loans and Receivables - This refers to non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, other than: those that the NSSLA upon initial recognition designates as debt security measured at FVocl; or those for which the holder may not recover substantially all of its initial investment, other than because of credit deterioration, which shall be classified as debt security measured at FVOCI. Quoted loans and receivables shall be classified as debt securities. Loans and receivables shall be measured upon initial recognition at fair value plus transactions costs that are directly attributable to the acquisition of the loans and receivables. After initial recognition, an NSSLA shall measure Loans and Receivables at amortized cost using the effective interest method.,, The sub-accounts of Loans and Receivables shail be as follows: (a) Loans to Individuals for Housing Purposes - This refers to the amortized cost of loans granted to individuals for housing purposes, which may be for the acquisition of a residential lot, construction or improvement of a residential unit. (b) Loans to Individuals Primarily for Personal Use Purposes - This refers to the amortized cost of loans granted to individuals for personal use purposes. (b.1) Motor vehicle Loans - This refers to the amortized cost of loans granted to individuals for the acquisition of motorized land transportation vehicles primarily for personal use. The loan may be considered secured if the motor vehicle purchased using the loan proceeds satisfies the full requirements of eligible chattel mortgage that is registered with both Registry of Deeds and Land Transportation Office. (b.1.1) Auto Loans - This refers to loans granted to individuals for the acquisition of automobiles primarily for personal use. (b.1.2) Motorcycle loans - This refers to loans granted to individuals for the acquisition of motorcycles primarily for personal use. (b.2) salary-Based General-purpose consumption Loans - This refers to the amortized cost of unsecured loans for a broad range of consumption purposes, granted to individuals mainly on the basis of regular salary, :rt

pension or other fixed compensation where repayment would come from such future cash flows, either through salary deductions, debits from the borrower's deposit account, mobile payments, pay-through collections, over-the-counter payments or other type of payment arrangement agreed upon by the borrower and lender. (b.3) Others - This refers to the amortized cost of loans granted to individuals to finance other personal and household needs such as purchase of household appliances, furniture and fixtures and/or to pay taxes, hospital and educational bills on the basis and under a repayment scheme other than those described under salary-based general-purpose consumption loans. (c) Loans to Individuals for Other Purposes - This refers to the amortized cost of other loans granted to individuals that cannot be classified under any of the foregoing classifications. (d) Loans to Corporate Members - This refers to amortized cost of loans to corporate members of an NSSLA that were accepted as members prior to the effectivity of R.A. No. 8367 and whose articles of incorporation and by- laws allows membership coverage that is broader than the concept of well- defined group of persons pursuant to the provisions under Section 4 of the said Act. Loan Discount - This refers to the unamortized discount on Loans and Receivables representing financial service fees that are an integral part of the effective interest of the account, which shall be debited monthly based on the effective interest method with the corresponding credit to "lnterest Income - Loans and Receivable". Other Deferred Credits - This refers to any increase in the face amount of loans resulting from accrued interest and accumulated charges which have been capitalized or made part of the principal or restructured loans. This shall be amortized/credited to income using the effective interest method. Allowance for Credit Losses - This refers to the cumulative amount set-up against current operations to provide for losses which may arise from the non- collection of loans and receivables. General Loan Loss Provision (GtLPl - This refers to the amount of general provision for loan losses not linked to individually identified uncollectible accounts required to be set up under existing regulations. The allowance for losses on loans and receivables should be the higher of the PFRS/PAS provisioning requirements or the BSP recommended valuation reserves (inclusive of general loan loss provision). In which case, compliance with the BSP recommended valuation reserves shall be evaluated on an aggregate basis. (71 Sales Contract Receivable (SCRI - This refers to the amortized cost of assets acquired in settlement of loans through foreclosure or dation in payment and

subsequently sold on installment basis whereby the title to the said property is transferred to the buyers only upon full payment of the agreed selling price. This shall be recorded initially at the present value of the installment receivable discounted at the imputed rate of interest. Discount shall be accreted over the life of the SCR by crediting interest income using the effective interest method. Any difference between the present value of the SCR and the derecognized assets shall be recognized in profit or loss at the date of sale in accordance with the provisions of PAS 18. SCR Discount - This refers to the unamortized discount on Sales Contract Receivable representing financial service fees that are an integral part of the effective interest of the account, which shall be debited monthly based on the effective interest method with the corresponding credit to "lnterest Income - Sales Contract Receivables". SCR - Other Deferred Credits - This refers to any increase in the face amount of Sales Contract Receivable resulting from accrued interest and accumulated charges which have been capitalized. This shall be amortized/credited to income using the effective interest method. Allowance for Credit [osses - This refers to the cumulative amount of impairment loss that has been incurred on SCR. (8) Accrued Interest Income from Financial Assets - This refers to interest income on financial assets that are already earned but not yet collected/received. Allowance for Credit Losses - This refers to the cumulative amount set up against current operations to provide for losses that may arise from non- collection of accrued interest income from financial assets. (e) NssLA Premises, Furniture, Fixture and Equipment - This refers to real and other properties used/to be used by the NSSLA in conducting its business which shall be accounted for using the cost model under pAS 1G. (a) Land - This refers to the acquisition cost of the land or lots used as existing or future sites of association's offices and parking lots used by the association's officers/employees and clients. Acquisition cost shall consist of the purchase price and all expenditures incurred incident to acquisition, such as cost of surveying, registration and issuance of title. This account shall also include the cost of filling and other expenditures which enhance the value of the land. (b) Building - This refers to the cost of buildings owned and used or to be used by the association for its business. The buildings shall be recorded at acquisition or construction/improvement costs, including architect's fees, building permits, inspection fees, cost of vaults, elevators, tellers'cages and other capitalizable expenditures incurred in making the premises ready for use. (c) Furniture and Fixtures - This refers to the cost of furniture, such as desks, tables and chairs, and fixtures to buildings, which do not form part of

"NSSLA Premises - Buildings" account, including expenditures incurred for major repairs and maintenance, which prolong the life of these assets beyond their original estimated useful life. This account also includes the cost of firearms owned and licensed in the name of the association. (d) Information Technology (lT) Equipment - This refers to the cost of lT equipment. (e) Other Office Equipment - This refers to the cost of office equipment, other than lT equipment. (f) Transportation Equipment This refers to the cost of transportation equipment. (g) teasehold Rights and lmprovements - This refers to the cost of building and/or improvements introduced on premises leased by the association, including the cost of leasehold rights and other expenditures incurred in making the premises ready for use. (h) NssLA Premises, Furniture, Fixture and Equipment - under Finance Lease - This refers to the cost of NssLA premises, furniture, fixture and equipment leased by the association under a finance lease agreement. This shall be accounted for in accordance with PAS 17. under pAs 17, this shall be recorded at the lower of (a) fair value of the leased property or (b) present value of the minimum lease payments, each determined at the inception of the lease. The discount rate to be used in calculating the present value of the minimum lease payments isthe interest rate implicit in the lease, if this is practicable to determine; if not, the lessee's incremental borrowing rate shall be used. Any initial direct costs of the lessee are added to the amount recognized as an asset. This shall comprise of the following sub-accounts: (h.1) Land (h.2) Buildings (h.3) Furniture and Fixtures (h.4) Information Technology Equipment (h.5) Other Office Equipment (h.6) Transportation Equipment (i) Revaluation Increment - This refers to the revaluation increase in the carrying amount of NSSLA's premises, furniture, fixture and equipment as an incentive to mergers and consolidation approved by the Monetary Board. The increase in the carrying amount of the asset shall be credited directly to equity under the account "Revaluation Increment Reserves,,. This shall comprise of the following sub-accounts: (i.1) Land (i.2) Buildings (i.3) Furniture and Fixtures (i.4) Information Technology Equipment (i.5) Other Office Equipment (i.6) Transportation Equipment \J.

(..71 NSSLA Premises, Furniture, Fixture and Equipment - Under Finance Lease: r Land o Buildings o Furniture and Fixtures o Information TechnologyEquipment o Other Office Equipment o Transportation Equipment Accumulated Depreciation - This refers to the accumulated depreciation of the NSSLA premises, furniture and fixture owned or leased by the association, which shall be set up monthly against current operations. U) Building Under Construction - This refers to the total cost of materials, labor and other capitalizable expenditures incurred in connection with the building(s) under construction. Upon completion of the building its cost shall be transferred/closed to "NSSLA Premises, Furniture, Fixture and Equipment - Buildings" account. Allowance for losses - This refers to the cumulative amount of impairment loss incurred on NSSLA premises, furniture, fixture and equipment, which shall be accounted for in accordance with pAS 3G. (10) Real and Other Properties Acquired (ROPAI - This refers to real and other properties, other than those used by the NSSLA in the conduct of its business or held for investment, acquired by the NSSLA in settlement of loans through foreclosure or dation in payment and/or for other reasons, whose carrying amount will be recovered principally through a sale transaction. Properties acquired through foreclosure or dation in payment shall be booked under this account as follows: (a) Upon entry of judgment in case of judicialforeclosure; (b) Upon execution of the Sheriffs Certificate of Sale in case of extrajudicial foreclosure; and (c) Upon notarization of the Deed of Dacion in case of dation in payment (dacion en pago). ROPA shall be booked initially at the carrying amount of the loan (i.e., outstanding loan balance adjusted for any unamortized premium or discount less allowance for credit losses computed based on PAS 39 provisioning requirements, which take into account the fair value of the collateral) plus booked accrued interest less allowance for credit losses (computed based on PAS 39 provisioning requirements) plus transaction costs incurred upon acquisition (such as non-refundable capital gains tax and documentary stamp tax paid in connection with the foreclosure/purchase of the acquired real estate property). i,'1

An in-house appraisal of all ROPAs shall be made at least every other year: Provided, that immediate appraisal shall be conducted on ROPAs which materially decline in value. Accumulated Depreciation - This refers to the accumulated depreciation of RoPA-Buildings and other Properties Acquired, which shall be set up monthly against current operations. Allowance for Losses - This refers to the cumulative amount of impairment loss incurred on ROPA, which shall be accounted for in accordance with PAS 35. (11) Non-Current Assets Held for Sale (NCAHS) - This refers to ROPA that are available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets and the sale must be hishly probable. This shall be accounted for in accordance with PFRS 5. Allowance for losses - This refers to the cumulative amount of impairment loss incurred on NCAHS, which shall be accounted for in accordance with PFRS 5. (12) Goodwill - This refers to the future economic benefit arising from assets that are not capable of being individually identified and separately recognized. This will be accounted for in accordance with pFRS 3. Allowance for Losses - This refers to the cumulative amount of impairment loss incurred on goodwill, which shall be accounted for in accordance with PAS 36. (13) Other Intangible Assets - This refers to the identifiable non-monetary asset without physical substance. Accumulated Amortization - This refers to the accumulated amortization of other intangible assets, which shall be set up monthly against current operations. Allowance for [osses - This refers to the cumulative amount of impairment loss incurred on other intangible assets, which shall be accounted for in accordance with PAS 36. (14) Deferred Tax Asset - This refers to the amount of income taxes recoverable in future periods in respect of deductible temporary differences, carry forward of unused tax losses and unused tax credits, which shall be accounted for in accordance with PAS 12. (15) Other Assets (a) Accounts Receivable - This refers to the following: (a.1) Accounts Receivable Arising from Sale of Financial Assets Other than Readily Marketable Debt Securities - This refers to the receivable arising from financial assets sold other than readily marketable debt securities under trade date accounting pending actual settlement/delivery of the underlying securities. j,.:t

(a.2) Accounts Receivable - Others - This refers to the following: o Amounts due from members under open-account arrangements including miscellaneous advances made, such as documentary stamps, and insurance premiums; o Claims such as tax refund and insurance proceeds; Staff salary advances payable in thirty (30) days or less (those payable in more than 30 days shall be considered as loans); o Advances for officialtravel of trustees /officers/employees; and o Unpaid loan balance of members who are no longer considered members pursuant to the NSSLA's By-Laws. (b) Deficiency Judgment Receivable - This refers to claims against borrower- debtor(s) arising from deficiency judgments rendered by the court. (c) Employee Benefits - This refers to the overfunding of defined benefit plan or in certain cases, the actuarial gains recognized. (d) Prepaid Expenses - This refers to expense prepayments expected to benefit the NSSLA for a future period not exceeding one year (i.e., insurance premiums, rent and interest on time certificates of deposit, etc.) paid in advance, which shall be amortized monthly. (e) Shortages - This refers to the amount of shortages found in the teller's daily transactions and/or accountability of officers and/or other employees. This account shall be closed when the shortage is: (a) duly accounted; or (b) paid in full; or (c) charged as receivable from the officer/employee concerned; or (d) charged to expense or written-off in accordance with existing rules and regulations. (f) Sundry Debits - This refers to items/transactions which at the time of recording cannot be classified immediately under any debit account. Entries to this account shall be cleared within one (1) month from the date of entry. (g) Inter-Office Float ltems - This refers to the debit balance difference of the Due from Head office/Branches/Agencies and Due to Head Office/Branches/Agencies accounts resulting from the elimination of reciprocal accounts in the consolidation process, to wit: Due from Head office/Branches/Agencies - The accounts "Due From Branches/Agencies" and "Due to Branches/Agencies" are Head office general ledger control accounts. The counterpart of these accounts in the books of the branches consists of the general ledger control accounts "Due from Head office" and "Due to Head office". rf the barance of the Head Office account with its branch is a debit, the account is carried as a "Due 1i:

From", an asset account in the books of the Head Office. Conversely, if the balance of the Head Office account with its branch is a credit, the account is carried as a "Due To", a liability account in the books of the Head Office. The same rule appliesto balances of the branches accounts ("Due From" or "Due To" Head Office)with the Head Office. These accounts are essentially clearing accounts through which Head Office/Branch/Agency and inter-branch/agency transactions are cleared. lnter-Head Office-branch transactions originating from the Head Office are debited or credited to the account of the branch concerned. The same applies to direct transactions of the branch with the Head Office. Inter- branch/agency transactions, on the other hand, shall be cleared thru the Head Office. The latter responds to the advice of the branch/agency where the transactions originated by debiting or crediting, as the case may be, the account of the branch/agency to which the transaction pertains. Likewise, branch transactions with the bank's local and foreign correspondents shall be coursed through the Head Office account. Aforementioned Head Office and branches' accounts are reciprocal accounts which are eliminated upon consolidation. The transactions which pass through these accounts are: o Investments of Head Office (HO) in its Branches/Agencies . Advances of HO to its Branches/Agencies . Check and cash remittances . Transfers of loan and other asset accounts o Responses to other debit/credit advices of Branches/Agencies o other receipts/payments made for account of Branches/Agencies . Advances made by Branches/Agencies for the account of Ho or vice versa o Remittances of Branches/Agencies to HO, and o Other inter-HO-Branch(es) transactions not specified above. ln the preparation of consolidated statements, the reciprocal accounts shall be eliminated and the resulting difference, if any, shall be reported under "lnter-office Float ltems (Debit Balance)" if a debit, or under "lnter-office Float ltems (credit Balance)" if a credit. Individual subsidiary ledger accounts for each branch/agency shall be maintained by the Head office. Sub-control accounts shall be maintained for items which are unresponded and outstanding for sixty (60) calendar days or more. (h) Others - This refers to other asset accounts such as, but not limited to the following: (h.1) Returned checks and other cash rtems - This refers to the total amount of checks and other cash items, returned to the NSSLA or dishonoredffound to be defective for certain reasons such as insufficiency of funds and alterations in the documents. (h.2) Petty cash Fund - This refers to the fund maintained on an imprest system to defray minimal disbursements. All payments shall be iI

evidenced/supported by duly accomplished and approved petty cash vouchers. (h.3) Documentary Stamps - This refers to the cost of documentary stamps, loose and/or loaded in the meter machine. (h.4) Postage Stamps - This refers to the cost of postage stamps loose and/or loaded in the postage meter machine. (h.5) Stationery and Supplies on Hand - This refers to the cost of unissued stationery, printed forms and supplies. (h.6) Deposits with Closed Banks/Banks in Liquidation - This refers to demand, savings and/or time deposits maintained with a bank and/or private securities/commercial papers purchased from financial institutions (banks and non-banks), which have been closed or placed under liquidation. (h.7) Other tnvestments - This refers to the cost of investments made for public relations purposes and/or to qualify as member/subscriber of clubs/ other non-profit organizations. (h.8) Miscellaneous Assets - This refers to items/transactions, which cannot be appropriately classified under any of the foregoing asset accounts. Allowance for losses - This refers to the amount of impairment loss incurred on other assets, which shall be accounted for in accordance with PASs 39 and 36. Liability Accounts (1) Deposit Liabilities (a) Savings Deposit - This refers to interest-bearing deposits which are withdrawable either upon presentation of a properly accomplished withdrawal slip together with the corresponding passbook or through the Automated Tellering Machine. (b) Time Certificates of Deposit - This refers to interest-bearing deposits with specific maturity dates and evidenced by certificates issued by the NSSLA. (2) Bills Payable - A separate subsidiary ledger shall be maintained for each lending institutions as follows: (a) Bills Payable - Banks - this refers to the amortized costs of borrowings obtained from banking institutions; and (b) Bills Payable - Others - this refers to the amortized cost of borrowings obtained from other non-bank financial institutions. tr7,'

(3) Accrued Interest Expense on Financial [iabilities - This refers to the interest incurred/due but not yet paid on financial liabilities. (4) Finance lease Payment Payable - This refers to the future lease payments payable under finance leases that shall be accounted for in accordance with PAS 17. (5) Due to Bangko Sentral ng Pilipinas (BSpl (a) Supervision Fee - This refers to the estimated liability for the NSSLA's share in the cost of maintaining the appropriate supervision and examination department of the BSP, which shall be set up monthly against current operations. (b) others - This refers to the items/transactions which cannot be appropriately classified under the foregoing "Due to BSp,, account. (6) lncome Tax Payable - This refers to the estimated liability for income tax which shall be set-up monthly against current operations. (7) Other Taxes and licenses Payable - This refers to the estimated liability for taxes and licenses, other than income tax, which shall be set-up against current operations. (8) Accrued Other Expenses - This refers to the estimated liability for other unpaid expenses, which shall be set-up monthly against current operations. (e) Unearned Income (a) Advanced Rentals on NSSLA premises, RopA and Equipment - This refers to the unearned portion of rentals received in advance on NSSLA premises, ROPA and/or equipment which shall be amortized monthly to income for the earned portion. (b) Others - This refers to other unearned income, which cannot be classified under advance rentals on NSSLA premises, RopA and Equipment. (10) Deferred Tax liabilities - This refers to the amount of income taxes payable in future periods in respect of taxable temporary differences. (11) Provisions - (a) Pensions and Other Post Retirement Benefits Obligations - This refers to the Association's liability with respect to pension and other post- employment benefits given to its employees. (b) others - This refers to provisions for credit losses on off-balance sheet exposures established in accordance with the generally accepted accounting standards

(Lzl Other Liabilities (a) Withholding Tax Payable - This refers to the taxes deducted/withheld by the Association from the (a) salaries/wages of its officers and employees and those hired on a contractual basis; and (b) others, for remittance to the Bureau of Internal Revenue, in accordance with existing rules and regulations. (b) SSS, Philhealth, Employer/s Compensation Premiums and Pag-lBlG Contributions Payable - This refers to the amount due to the Social Security System, Philippine Health Insurance Corporation, Employees' Compensation Commission and Pag-lBlG Funds, for employees' premiums/contributions and payment of loans, such as salary and housing loans. (c) Unclaimed Net Income Distributed to Members - This refers to the unpaid amount of net income declared by the Board of Trustees for distribution to members of record and duly approved by the BSP. (d) Accounts Payable (d.1) Accounts Payable Arising from Purchase of Financial Assets under the Trade Date Accounting - This refers to the payable arising from the purchase of financial asset under trade date accounting pending actual settlement/receipt of the underlying securities. (d.2)Accounts Payable - Others - This refers to the following: Other obligations of the Association under open-account arrangements such as deposits made by loan applicants for various expenses in connection with pending loan applications; . Payments on loans pending liquidation; o Interest rebates on loan accounts which have not been claimed by clients; o Deposits in connection with the purchase/redemption of property acquired; and o Indebtedness for purchases of office supplies, printed forms, furniture, fixtures and equipment. (e) Overages - This refers to the amount of overages found in the tellers' daily transactions and/or accountability of officers and/or other employees. overages arising from loose change shall be closed to an appropriate income account at the end of the accounting period while overages of substantial amounts shall be transferred to "Accounts payable" account pending proper disposition. )3

(0 Sundry Credits - This refers to the items/transactions which cannot be classified immediately under any credit account. Entries to this account shall be cleared within one (1) month from date of entry. - This refers to the credit balance difference (e) lnter-Office Float ltems between the Due to Head Office/Branches and Due from Head Office/Branches accounts resulting from the elimination of reciprocal accounts in the consolidation process. (h) Miscellaneous Liabilities - This refers to the items/transactions which cannot be appropriately classified under any of the foregoing liability accounts. Equitv Accounts (1) Capital Contributions - This represents ownership interest by the members in an N55LA, including the rights (e.g., voting rights, right to take part in the distribution of the income of the Association, etc.) arising therefrom. lt is also used to cover unexpected losses incurred by an NSSLA and serves as measure of its solvency. Inherent to its nature and to address liquidity risk, each capital contribution of a member shall consist of fixed and buffer components. (a) Fixed Capital - This refers to the portion of a member's capital contribution in an NSSLA which must be maintained and once increased and recorded, subject to ceiling provided under existing rules and regulations, cannot be reduced for the duration of his/her membership thereon except upon termination of membership. A separate subsidiary ledger account for each individual member shall be maintained by the Association. (b) Capital Contribution Buffer- This refers capital contributions in excess of fixed capital. The capital contribution buffer of each member shall not exceed ten times (10X) of his/her fixed capital contribution but may be reduced pursuant to the policies set by the board of trustees and duly confirmed by the NSSLA's general assembly. The NSSLA shall establish and prescribe the conditions and/or circumstances when the NSSLA may limit the reduction of the members' capital contribution buffer, such as, when the NSSLA is under liquidity stress or is unable to meet the capital-to-risk assets ratio requirement under existing rules and regulations. Provided, that such conditions and/or circumstances shall be disclosed to the members upon their placement of capital contribution buffer and in manners as may be determined by the Board. A separate subsidiary ledger account for each individual member shall be maintained by the Association. (21 Retained Earnings - This refers to the aggregate accumulated profits/surplus of the association: (a) Retained Earnings Reserve - This refers to the appropriated portion of the ;a'1

accumulated profits/surplus of the Association. (a.1) Withdrawable Share - This refers to statutory reserves being set up from undivided profits/surplus as prescribed under the MORNBFI. This shall be funded in the form of cash deposited in a separate bank account and/or evidences of indebtedness of the Republic of the Philippines or of its subdivisions, agencies or instrumentalities, the servicing or repayment of which are fully guaranteed by the Republic of the Philippines, and evidences of indebtedness of the BSP. (a.2) tedger Discrepancies - This refers to the accumulated amount of reserves set up from undivided profits as prescribed under the MORNBFI that shall be equivalent to the amount of the discrepancy between the general ledger accounts and their respective subsidiary ledgers, and shall not be available for distribution as dividends or for any other purpose unless and untilthe discrepancy is accounted for. (a.3) Office Premises, Furniture, Fixtures and Equipment - This refers to the accumulated amount set aside for building fund to cover the cost of construction or acquisition of office premises, and of the purchase of office furniture, fixtures and equipment as prescribed under the MORNBFI. (a.4) Contingencies - This refers to the accumulated amount set aside for possible or unforeseen losses, decrease or shrinkage in the book value of the NSSLA's assets, or for undeterminable liabilities not otherwise recorded, such as those arising from lawsuits, defaults on obligations and unexpected expenditures. (a.5) General Provisions in Excess of the Expected Credit Loss (ECL) from the Model (Stage 1 Requirementl - This refers to the amount setup for the deficiency in the computed allowance for credit losses on Stage 1 accounts (if less than the 1 percent General Provision required). (a.5) Others - This refers to the accumulated amount set aside for purpose other than those stated in the aforementioned "Retained Earnings Reserve" accounts. (b) Retained Earnings Free - This refers to the unappropriated or free portion of the accumulated profits/surplus of the Association. (3) Undivided Profits - This refers to the clearing account for all income and expenses, the balance of which shall be transferred to "Retained Earnings - Free" account at the end of the accounting period after taking up all other charges and/or credits that may be appropriately cleared thru this account. (4) Other Comprehensive Income - ;l i_

(c) Net Unrealized Gains/(Lossesf on Debt Securities at FVOCI - This refers to the contra account of "Accumulated Market Gains/(Losses) - Debt Securities at FVOCI". The account is credited for gains and debited for losses from change in the fair value of the debt security measured at FVOCI. (d) Others - This refers to Other Comprehensive Income that cannot be appropriately classified under item (a). (5) Revaluation lncrement Reserve - This is the reciprocal account of "NSSLA Premises - Revaluation Increment" account. INCOME STATEMENT ACCOUNTS (1) fnterest Income - This refers to interest earned andf or actually collected from the following financial assets: (a) Due from Banks (b) Debt Securities at FVOCI (c) Debt Securities at Amortized Cost (d) Loans and Receivables (d.1) Loans to Individuals for Housing Purposes (d.2) Loans to Individuals Primarily for Personal Use Purposes (d.2.1) Motor Vehicle Loans (d.2.1.1)Auto Loans (d.2.I.21 Motorcycle Loa ns (d.2.21 Sala ry-Based Genera l-Pu rpose Consu m ption Loans (d.2.3)Others (d.3) Loans to Individuals for Other Purposes (d.4) Loans to Corporate Members (e) Sales Contract Receivable (SCR) (f) Others (2) Interest Expense - This refers to payments and/or monthly accruals of interest on the following financial liabilities: (a) Deposits (a.1)Savings Deposit (a.2)Time Certificates of Deposit (b) Bills Payable (b.1) Bills Payable - Banks (b.2) Bills Payable - Others (c) Finance Lease Payment Payable (d) Others (3) Provision for Losses on Accrued Interest Income from Financial Assets - This refers to the impairment loss on accrued interest income from financial assets charged against current operations. (4) Fees and Commissions tncome - This represents charges/fees collected for services relating to deposit and lending services.

(s) Gains/(Losses| from Sale/Redemption/Derecognition of Financiat Assets and Liabilities Measured - This refers to the gains/(losses) from financial assets and liabilities Measured, which is comprised of the following: (a) Realized Gains/(Lossesf from Sale/Redemption/Derecognition of Financial Assets and liabilities - Debt Securities at FVOCI - This refers to the gains/(losses) incurred in the sale/redemption/derecognition of non-trading financial assets and liabilities - Debt Securities at FVOCI. (b) Realized Gains/(tosses| from Sale/Redemption/Derecognition of Financial Assets and Liabilities - Debt Securities at Amortized Cost- This refers to the gains/(losses) incurred in the sale/redemption/derecognition of non- trading financial assets and liabilities - Debt Securities at Amortized Cost. (6) Gains/(Losses| from Sale/Derecognition of Non-Financial Assets - This refers to the gains/(losses) arising from derecognition of the following non-financial assets: (a) NSSLA Premises, Furnlture, Fixture and Equipment (b) RoPA (c) Goodwill (d) Other Intangible Assets. (7) Other Income (a) Rental Income (a.1) NSSTA Premises and Equipment - This refers to rental earned from lessees on NSSLA premises and equipment. (a.2) Real and Other Properties Acquired - This refers to rental earned from lessees on real and other properties acquired. (b) Miscellaneous Income - This refers to the income which cannot be appropriately classified under any of the foregoing income accounts. (8) Compensation/FringeBenefits (a) Salaries and Wages - This refers to the gross remuneration of officers and employees for regular and overtime services rendered; (b) Fringe Benefits; (b.1) Trustees - This refers to the expenses for any good, service or other benefit furnished or granted by the NSSLA to its trustees, in cash or in kind, in addition to its per diem/honorarium in accordance with the law and NSSLA's by-laws. (b.2) officers and Employees - This refers to the expenses for any good, service or other benefit furnished or granted by the NSSLA to its officers, in cash or in kind, in addition to basic salaries, such as, but :'4

not limited to, housing; expense accounU vehicle of any kind; household personnel, such as maid, driver and others; membership fees, dues and other expenses borne by the Association for its officers in social and athletic clubs or other similar organizations; expenses for foreign travel; holiday and vacation expenses; educational assistance to officers or their dependents; and life or health insurance and other non-life insurance premiums or similar amounts in excess of what the law allows, in accordance with BIR regulations, as well as expenses for allowances and other fringe benefits granted to employees in accordance with the law and NSSLA's by-laws such as bonuses, profit shared, including those for special studies/seminars but excluding medical, dental and hospitalization benefits. (c) Trustee's Fees - This refers to the per diems and fees granted to trustees in accordance with the law and NSSLA's by-laws. (d) sss, Philhealth and Employees' compensation premium and pag-lglG Fund Contributions - This refers to the NSSLA's share in the Social Security System, Philhealth, Employees' compensatlon premiums and pag-lBlG Fund contributions of its officers and employees. (e) Medical, Dental and Hospitalization - This refers to the expenses for medical and dental services, including cost of medicines, hospital bills and other related expenses incurred by the NSSLA, in accordance with the law and NSSLA's by-laws, for and in behalf of its officers and emproyees and their dependents. (f) contribution to Retirement/Provident Fund - This refers to the NSSLA's contributions to the retirement/provident fund or any similar fund for its personnel. (g) Provision for Pensions and Other Post Retirement Benefits - This refers to the NSSLA's provisions for pensions and other postretirement benefits. (9) Taxes and Licenses - This refers to the expenses incurred for taxes and licenses other than income tax, such as corporate residence tax, motor vehicle registration fees, and other taxes. (10) OtherAdministrative Expenses (a) Rent - This refers to the expenses incurred, including monthly amortizations of rent paid in advance for buildings, spaces and/or equipment leased by the NSSLA for its business. (b) Power, Light and Water - This refers to the expenses incurred for power, light and water consumption. (c) Postage, Telephone, Internet, Cables and Telegrams - This refers to the expenses incurred for postage, telephone services, internet, cables and telegrams. -,'

(d) Repairs and Maintenance - This refers to the expenses for repairs and maintenance incurred to put/keep the NSSLA premises, furniture, fixtures and equipment in working condition but which do not prolong the estimated useful life of the asset or enhance the value thereof. (e) Security, Clerical, Messengerial and Janitorial Services - This refers to expenses incurred for the services of security guards, clerks/tellers, messengers and janitors who are not employees of the NSSLA and/or are hired on a contractual basis. (f) Information Technology Expenses - This refers to expenses incurred for the operation, maintenance and development of computer hardware and software. (g) Supervision Fees - This refers to fees on supervision by the BSp. (h) Insurance Expenses - This refers to the payments and monthly amortizations for premiums on insurance, such as fidelity bond, fire insurance and workmen's compensation coverage. (i) Management and Other Professional Fees - This refers to the expenses for services rendered by individualsfirms on a retainer/contractual basis, such as the managing company, legal counsel, external auditors and consultants. (j) Representation and Entertainment - This refers to the fixed allowances and/or actual expenses incurred for public relations activities which are directly related to the promotion of the business development and enhancement of the prestige of the NSSLA. (k) Traveling Expenses - This refers to the expenses incurred for the official travel of trustees, officers and employees, including fares, hotel bills, subsistence, porterage and tips. This account shall also include expenses incurred by trustees, officers and employees for fuel and minor repairs in using their own vehicles for official travel. (l) Fuel and Lubricants - This refers to the expenses incurred for fuel and lubricants used for NssLA -owned/leased vehicles and other equipment. (m)Advertising and Publicity - This refers to the expenses for advertising and publicity in the newspapers, magazines, television, radio and other media, including those for handbills, pamphlets, billboards, brochures and giveaways. (n) Membership Fees and Dues - This refers to the expenses incurred for membership fees and dues to civic associations or professional organizations wherein the association, its officers and/or employees are members. (o) Donations and Charitable Contributions - This refers to the donations and contributions to charitable organizations and other non-profit associations, including contributions to victims of fire, typhoon and other calamities. ]i:

(p) Periodicals and Magazines - This refers to the expenses incurred for periodicals, magazines and other publications. (q) Documentary Stamps Used - This refers to the expenses incurred for documentary stamps used by the association, excluding those chargeable to customers. (r) Stationery and Supplies Used - This refers to the expenses incurred for printed forms, stationery and other office supplies used by the NSSLA or issued from the stockroom to the different departments and branches of the association, excluding those chargeable to the customers. (s) Fines, Penalties and Other Charges - This refers to the fines, penalties and other charges imposed on the association under existing rules and regulations, such as fines/penalties for reserve deficiencies, late submission of reports and violation of rules/regulations. (t) titigation/Assets Acquired Expenses - This refers to the expenses incurred in connection with the litigation proceedings, as well as those incurred in their preservation/ maintenance. (u) Other Expenses - This refers to the items which cannot be appropriately classified under any of the foregoing expense accounts. (11) Depreciation/Amortization - This refers to the monthly/periodic depreciation of NSSLA premises, furniture, fixture and equipment and ROPA accounts and the amortization of other intangible assets. (L2l lmpairment Loss - This refers to impairment loss incurred on the following assets: (a) N55LA Premises, Furniture, Fixture and equipment (b) RoPA (c) Intangible Assets (d) Goodwill (e) NCAHS (f) Other Assets (13) Provisions - Others - This refers to the Association's provisions other than for pensions and other postretirement benefit obligations. (14) Provision for Credit Losses on Loans and Receivables and Other Financial Assets - This refers to the impairment loss on loans and receivables and other financial assets, which shall be debited to set up the allowance for losses on the said financial assets. (15) Bad Debts Written Off - This refers to loans, advances and other accounts which management has finally determined to be worthless/uncollectible and written-off from the books in accordance with generally accepted procedures and existing rules and regulations.

(15) Recovery on Charged-Off Assets - This refers to the collections of accounts or recovery from impairment of items previously written-off/provided with allowance for credit losses. (17) Income Tax Expense - This refers to the monthly provision for income tax for income derived from any of its personal or real properties, or any activity conducted for profit. CONTINGENT ACCOUNTS (1) Late Deposit/Payment Received - This refers to the non-cash deposits received after the selected clearing cut-off time which are not booked as deposits for the day as allowed under existing rules and regulations and non-cash payments received after the selected clearing account cut-off time for purposes other than as deposits which shall be validated/reversed the following business day or shall be lodged in their appropriate asset/liability accounts. (2) ltems Held for Safekeeping/Custody - This refers to the total nominal amount (P1.00 per item) of items held for safekeeping or custody. (3) ltems Held as Collateral - This refers to the total nominal amount (p1.00 per item) of the items held as collateral for loans and other credits granted such as certificates of deposit, passbooks, and certificates of title. A register shall be maintained for this account. (4) Deficiency Claims Receivable - This refers to the amount of probable claims against borrowers/debtors arising from the foreclosure of mortgaged properties. (5) Other Contingent Accounts - This refers to the items which cannot be appropriately classified under any of the foregoing contingent accounts. LINE ITEM INSTRUCTIONS Schedule 1 - Due from Banks Report in the appropriate column the total balances of the different types of deposit account maintained by the NSSLAs with banks and the corresponding Allowance for Credit Losses. Schedule 2- loans and Receivables A. According to Purpose of loan Report the required information (i.e., cost, unamortized loan discount, other deferred credits and specific allowance for credit losses) on loans and receivables which shall be classified in the appropriate columns according to the (L) type of collateral covering the loan, and (2) status. ,l$

[oans and Receivables Classified as to Tvpe of Collateral a. Secured - Report the required information on loans and receivables to the extent that such are covered by real estate mortgage (REM), chattel mortgage and other collaterals deemed acceptable to the NSSLA: a.1. Real Estate Mortgage (REM) - Report the required information on loans and receivables to the extent that such are covered by a REM duly registered with the Registry of Deeds. a.2. Chattel Mortgage - Report the required information on loans and receivables to the extent that such are covered by chattel mortgage on tangible assets duly registered with the appropriate registry (e.g., Land Transportation Office in case of motor vehicles, Maritime Industry Authority in case of vessels). a.3. Non-Risk Assets - Report the required information on loans and receivables to the extent that such are covered by non-risk assets, such as debt securities issued by the BSP of Philippine government, deposits maintained in the lending NSSL, and such other assets considered as non-risk by the Monetary Board. a.4. Other Assets - Report the required information on loans and receivables to the extent that such are covered by other assets/collaterals. b. Unsecured - Report the required information on unsecured loans and receivables. Loans and Receivables Classified as to Status a. Current b. Past Due - This refers to past due loans as defined under the MORNBFt. c. Non- Performing - This refers to non-performing loans defined under the MORNBFI. B. According to Membership Type loans and Receivables - Report the required information including status of loans and receivables which shall be classified according to any of the following well-defined group where the member-borrower belongs: a. Employees of Mother Unit b. Retirees of Mother Unit c. Employees of NSSLA d. lmmediate Family Members of items a, b, and c above. e. Corporate Members t. Others j-1

Schedule 3 - Interest Rate and Residual Maturity Matching Report the net carrying amount of financial assets and liabilities classified as to the following residual maturity time buckets: a. On Demandl b. Up to one month c. Over one month to three months d. Over three months to six months e. Over six months to twelve months l. Over one year to three years g. Over three years to five years h. Over five years i. Past Due Further, the net carrying amount of financial assets and liabilities shall be classified according to the nominal interest rate stated in the agreements/contracts. Residual Maturity refers to the amount of time remaining from the report date until the final contractual maturity of the financial asset and financial liabilities. The account "Others" under financial assets shall be composed of the following: a. Accounts Receivable Arising from Sale of Financial Assets Other than Readily Marketable Debt Securities b. Accounts Receivable c. Deficiency Judgment Receivable The account "Others" under financial liabilities shall be composed of the following: a. Due to BSP b. Income Tax Payable c. Other Taxes and Licenses Payable d. Accrued Other Expenses e. Other Liabilities such as Withholding Tax Payable and Accounts Payable The ininimum and maximum interest rate per annum for loans and receivables and deposit liabilities shall be specified in the additional information portion (item nos. 1 and 2) found at the bottom of the schedule. The minimum and maximum interest rate per annum for loans and receivable shall further be sub-classified as to nominal interest rate and effective interest rate, Nominal interest rate is the interest rate stated in the loan agreement or evidence of deposit offered by the NSSLA. Effective interest rate is the rate that exactly discounts estimated future cash flows through the life of the loan to the net amount of loan proceeds. 1 The cut-off date should be the reporting date indicated.

Schedule 4 - NSSTA Premises, Furniture, Fixture and Equipment Cost - Report the cost of the indicated components of NSSLA Premises, Furniture, Fixture and Equipment in this column. Accumulated Depreciation - Report the accumulated depreciation of the indicated components of NSSLA Premises, Furniture, Fixture and Equipment in this column. Allowance for Losses - Report the allowance for losses of the indicated components of NSSLA Premises, Furniture, Fixture and Equipment in this column. Net Carrying Amount - Report the net carrying amount of the indicated components of NSSLA Premises, Furniture, Fixture and Equipment in this column, which shall correspond to the cost of the NSSLA Premises, Furniture, Fixture and Equipment less accumulated depreciation less allowance for losses. Schedule 5 - Real and Other Properties Acquired (ROPAf/Non-Current Assets Held for Sale (NCAHSI Cost/Carrying Amount - Report the cost of the Real and Other properties Acquired (ROPA) in this column and carrying amount (fair value less cost to sell but not to exceed the carrying amount of the ROPA prior to transfer) of Non-Current Assets Held for Sale (NCAHS) in this column. Accumulated Depreciation - Report the accumulated depreciation of Real and Other Properties Acquired in this column. Allowance for Losses - Report the allowance for impairment losses on Real and Other Properties Acquired. Net Carrying Amount - Report the net carrying amount of Real and Other properties Acquired and Non-Current Assets Held for Sale in this column, which shall correspond to the cost less accumulated depreciation less allowance for losses, as applicable. Fair Value - Report the fair value of ROPA and NCAHS as of end of fiscal/calendar period in this column. Additional I nformation Report the amount of ROPA reclassified to NSSLA Premises, Furniture, Fixture and Equipment during the year and the amount of ROPA reclassified from NSSLA Premises, Furniture, Fixture and Equipment during the year. Schedule 5 - Membership profile Report in this table the number of members and the amount of their corresponding fixed capital and capital contribution buffer in the NSSLA. The members shall be classified as to of voting or non-voting members and according to any of the following well-defined group to which the members belong: 1. Employee of Mother Unit 1',l

2. Retirees of Mother Unit 3. Employees of NSSLA 4. lmmediate Family Members of 1, 2 & 3 5. Corporate Members 6. Others Voting member - refers to a member who possesses voting rights, either generally or in respect to a particular question involved, as the case may be. Non-voting member - refers to a member who does not possess voting rights. Schedule 6-A - Breakdown of Capital Contribution Report the required information such as: number of members as well as the corresponding capital contribution (i.e., fixed capital or capital contribution buffer) per size bucket for the capital contribution. 1)

REPORT FORMATS 3.1

NAME OF tNSnTUTtOil 0NSTITUT|ON CODEI As of: SAI.ANCE SHEET (ln Absolute PGso Amount) Particula|s Account Code Seq No Amount D)C I) 105050000000000000 1051000m000000000 t0s2(x)000000000000 0.00 t65200500000000000 0.00 r9s200500000(x)0000 0.00 4 Debt Securities at Fair Value Through Other Comprehensive Inconn lfVOCt; 123001000000000000 170231000000000000 150231000000000000 -.5u .rr'riE. srrrrrr! 123051000000000000 0.00 124000000000000000 170241(x)0000000000 16s241000000000000 195241000000000000 0.00 140150000000(x)0000 0.00 vr rrvvrl16 rurpv)Ej 140150004000000000 0.00 140150004500000000 0.00 t40150004510000000 0.00 r4015000451007r000 0.00 r40150004s10072000 0.00 r40150qr4512000000 0.00 14015@04515000000 0.00 r40150005000000000 0.00 140150505500000000 Less: Loan Discount 0.00 70350500000000000 0.00 70351000000000000 0.00 .55401500000000000 0.00 .40150300@0000000 0.00 75150000000000000 401505(x)000000000 0.00 45150000000000000 170450500000000000 170451000000000000 145153000000(x)0000 19545150000000(){n0 0.00 14520000(,()00000000 165452000000000000 Accruld Intarast lncome fyom Financlal Asscts - Net 195452000000000000 0.00 1s00s0000000000000 0.00 1s00s0002000000000 0.00 r50050002500000000 0.00 1s@5000300@00000 0_00 rs0050003500000000 0.00 150050004000000000 0.00 150050004500000000 0_00 150050006500000000 0.00 500s000s000000000 0.00 h.1. [and rs0050005005000000 0.00 1s0050005010000000 0.00 r50050005015000000 0.00 150050005020000000 0.00 50050005025000000 0.00 50050005030000000 0.00 1s0050005035000000 0.00 rs00s000s500000000 0.00 150050005505000000 i.2. Suildins 1500s000s5r000m00 0.00 0.00 15(x)50005515000000 _ ,__.__. , _:._rvrvE, 0.00 r! r, slsrFrrrsrrr s005000ss2000(x)00 0.00 150050005525000000 i.6. TransportationEquipment 0.00 150050005s30000000 i.7. I'|SSU ere 0.00 15005000553s000000 0.00 150050005540000000 0.00

NAME OF tNSnIUnON (|'{STTTT|ON CODEI As of: BAI.AI{CE SHEET (ln Absolutr Peso Amountl (2) Building 1s005000s545000000 0.00 (3) Furniture and Fitures t50050005550000000 0.00 (4) Information Technology (tT) Equipment r5005000555s000000 0.00 (5) Other Office Equipment 150050005560000000 0.00 (6) Transportation Equipment 150050005565000000 0.00 ueprsralpn 1850500qD00000000 0.00 ounurnE 150050006000000000 0.00 180050000000000000 0.00 rqu|pment 195s00500000000000 0.00 Propenres Acquired (ROPA) s0100(X)0000000000 0.00 IJeDrecratron 185100000000000000 0,00 180100000000000000 0,00 Prop€nres Acquired - Net 19s501000000000000 0.00 (NLAH5l 150150000000000000 0.00 180150000000000000 0.00 150150000000000000 0.{xt 150200000000000000 180200@0000000000 19ss020(x)000000000 0.00 Inrdngr9re 15025000(xxr0000000 r90250000000000000 r80250m0000000000 195s02500000000000 0.00 1ss050000000000000 155r00000000000000 0.00 155100001500000000 0.00 a.l. Accounts Receivable Arising from Sale of Financial Assets other than Readilv MarteiaOte Oebt 155100001505000000 Securities' t55100001510000(x)0 JUqgmenI t551000030000m000 15510m035000(x)(X)0 q. rrepaE upenses 155100001500000000 rage5 155100005000000000 155r00005500000000 E. 155100099500000000 0.00 Items 155100099505000000 PEIIY 155100099510000000 t.J. uocumenBry )Iamps 155100099515000000 9,4. tsosrage )Iamps 55100099520000000 i5510009952500(xD0 uquroat|on r551m099530000000 r55100099535000000 1551(x)099540000000 0.00 1 ) 180300000000000000 r95551000000000000 0,00 t00000000000000000 o,00 21s000000000000000 0.00 21S100000000000000 215150000000000000 220100000(x)0000m0 0.00 220100001000100000 220100003000100000 225200000000000000 225250(xrc000000000 rrrror r15 rnrPnrd: tDJry 130350000000000000 0.00 r30350500000000000 r303s1000000000000 230500000000000000 Accrued Other Expen: Accrued Other Expenses r30500000000000000 Unearned Income 13065m000qD00000 a. Advance Rentals on NSSTA premises, ROPA and Equipment 1305s0500000000000

NAME OF TNSnTUTTON (TNSTTTUT|ON CODEI As of: IAI.AT{CE SHEET (ln Abslut Prso Amdntl b. Others 230651000000000000 10 Deferred Tax Liabilities 130700000000000000 11 Provisions 1307500000(X)000(x)0 0.00 a. Pensions and Other Post Retirement Benefits Obligations 13075100(x)0m00000 b. Others 1307s9000000000000 0.00 1 12 Other tiabilities t30800000000000000 0.00 a. Withholding Tax Payable 130800001000000000 b. SSS, Philhealth, Employer's Compensation premiums and pAG-tBtG Contributions pavible 230800001500000000 c. Unclaimed Net Income Distributed to Members 230800005000000000 d. Accounts Pavable 23080000300000(xD0 0.00 d.1. Accounts Payable Arisint from Purchase of Financial Assets under the Trade Date Accounting 230800003050000000 d.2. Accounts Pavable- Others 130800003100000000 0.00 e. Overates 230800004s00000000 f. Sundry Credits 23080000s000m0000 g. Inter-Office Float ltems 23080000s500000000 h. Miscellaneousl-iabilities 230800005000000000 0.00 1 ) 200000(X)0000000000 0.00 :quil Y ALLUUN t5 LapIal 30s000000000000000 0.00 Laplal 10s0s0000@o000000 0.00 30s200000000000000 0.00 nrng5 t150000000000000m 0.00 a. Retained Earnings Reserue |1s050000000000000 0.00 |150s4000000000000 Leoger urscrepancte9 t150ssfiD000000000 tsremts€s, turntture, Fixtures and Equipment 31505500000000(X)00 4.4. LOnuntenctes 31s0530000m000000 a.5. General Provisions in Excess of the Expected Crediil_oss (ECt-) from ttre tvtode(Stage f 31s0s400(X)00000000 impairment) a.6. Others 3150s9000000000000 0.00 , dlnrnE5 r15100000000000000 31s1s0000000000(x)0 320000m00000000(x) 0.00 uarnS/lLosses, at Fvoc 3200810000(D000000 32090@00000(Xxrc00 0.00 1 t2s050000000000000 rutAL tsqutlY 100000000000000@0 0.00 EqUIIY t00000000000000000 0.00 -I'NIIN('tsNI ALLUUNIS raymenl t95050000000200000 z rrems nero ror )arexeeptn&/Lustody 19s300000000200000 195350000000200000 4 Deficiency Claims Receivable f9s400000000200000 5 Other Contingent Accounts 195950(X)0000200000 0.00 1 TOTAT COITITINGENT ACCOUI{TS rooooooooooooooooo T 0.00

NAME OF tilSTtTUTtOil llilSTtTUTlOil CODE) For the Perlod Ending: INCOME STATEMENT lln Absolute Peso Amount) Particulars Account Code Amount IITEREST INCOME AND EXPE]IISE I Interest Income 505050000000(n0000 0.00 a. Due from Banks 505059000000100000 b. Debt Securities at Fair Value Throuph Other Comorehensive tncome lFvoatl 5050535000q)100000 c. Debt Securities at Amortized Cost sosos4flxDoo100000 d. Loans and Receivables 505056500000000000 0.00 d.1. Loans to Individuals for Housinp Purooses s0s0s5504000000000 d.2. Loans to Individuals Primarilv for Personal Use purooses 50s056504500000000 0.00 d.2.1. Motor Vehicle Loans s0s0s6504s10000000 0.00 d.2.1.1. Auto Loans 505056504510071000 d.2.1.2. MotorcvcleLoans 505056504510072000 d.2.2. Salary-Based General-PurDose Consumotion Loans 505056504512000000 d.2.3. Others 505056504515000000 d.3. l-oansto IndividualsforOther purooses 505056505000000000 d.4. Lqqns to Corporate Members 505055505500000000 e. Sales Contract Receivable 50sos8000000@(n00 f. Others s050595000000(n000 In(ere5t Expense 60510000m0(no0000 0.00 ueposrts 605101500500(n0000 0.00 a.1.. savings Deposit 605101501000000000 a.2. Time eertificates of Deposit 605101502000000000 o. Btils Payabte 60s102000000000000 0.00 b.1. Bills Payable - Banks '60s102001s00000000 b.2- Bills Payable - Others 60s102009500000000 c. Finance Lease Pavment Pavable 6051(M500000@0000 o.9[ners 605109500000000000 l Provision for Losses on Accrued Interest Income from Financial Assets 605150000000000000 ||et Interest Income 505000000000000000 0.00 [ON.INTEREST INCOME I Fees and Commissions Income 510100000000000000 i Gains/(Losses) from Sale/Redemption/Derecosnition of Financial Assets and Liahitiiies 590300000000000000 0.00 a. RealizedGains/(Losses)fromsaleorDerecognitionofFinancialAssetsandtiabilities-OeOt Securities at FVOCI s10302300000000000 b' RealizedGains/(Losses)fromSaleorDerecognitionofFinancialAssetsandLiabilities-Debt Securities at Amortized Cost 510302400000000000 i Gains/(Lossesl from Sale/Derecognition of Non-Financial Assets 510400000000000000 0.00 a. N55LA premises, Furniture, Fixture and Equipment 51040200000000(n00 p. Kear and Uther properties Acquired 510403000000000000 c. Goodwrll s10404000000000000 o. utner Intangtbte Assets 510409000000000000 / utner Income 5104s0000000000000 0.00 a. Rental lncome s10450s00000000000 0.00 a.1. NSSLA Premises and Equipment s10450500500000000 a. urner Properttes Acouired s10450501000000000 rsceilaneous Income 510451000000000000 I otar Non-tntere$ Income s10000000000000000 0.00 \| OII.I NTEREST EXPEITSE I Compensation/FringeBenefits 610050000000000000 0.00 sarafles ano wages 610050000500fi)0000 Fnnge beneltts 6100s0001000000000 0.00 o.l, I rustees 6100s000000s000000 o.z. untcers and tmolovees 610050@00100000m c. Trustee's Fees 6100s0001500000000 d. sss, Philhealth and Employees'compensation premium and pag-lBlG Fund contributions 5100s0002000000000 g. Medical, Dental and Hospitalization 610050002500000000 r. Lonrflpuuon ro Kertrement/provtdent Fund 610050003000000000 p. Provision for Pensions and Other post Retirement Benefits 510050003500000000 ) Taxes and Licenses 61010000000000m00 l0 Other Administrative Expenses 5101500000000(n(n0 0.00 a. Rent 510150000500000000

ftAME OF tNSTITUT|Oil (llrSTlTUTlOt{ CODEI For the Period Ending: INCOME STATEMENT {ln Abolute Peso Amount} b. Power, Light and Water 610150001000000000 c. Postage, Telephone, Cables and Telecrams 510150001500000000 d. Repairs and Maintenance 6101s0002000000000 e. Securitv, Clerical, Messengerial and Janitorial Services 610150002500000000 f. Information Technologv Exoenses 6101s0003000000000 B. Supervision Fees 610150003s00000000 n. Insurance txpenses 510150004000000000 i. Management and Other Professional Fees 510150005000000000 i. Representationand Entertainment 610150005500000000 k. Traveling Expenses 610150006000000000 L Fuet anct Lubricants 610150005s00000000 m. Advertisins and Publicitv 510150007000000000 610150007500000000 o. 6101s0008000000000 610150008500000000 q. uocumenrary )tamDs used 610150009000000000 610150009500000fi)0 s. Ftnes, HenatUes ano utner cnarges 610150010000000000 5101s0010500000000 6101500995m0fi)ff)o tr ueprectaflon/Amontzalton 6lo2oo(nffnmfixno 510250000000000000 0.00 d. rrerntses, rurntlure, Ftxture ano equtpment 610252000000000000 610253000000000000 c. lntanpible Assets 610259000000000000 o. (Jooowttl 6102s400000000q)00 e, NLAH5 510253500000000000 r. utner Assets 61025gsfiXXXXXXnfi) 51o3fiXXXXnOfiXXrn I orar Non-tnleresE txpense 610000000000000000 0.00 -ossEs/REcoVERtES Or{ FtNANC|At ASSETS 14 ProvrsrontorcreditLossesonLoansandReceivablesandotherFinancialacspts 70005000000(noo000 700100000000000000 F nELuvety un Lndrgeo-ull Assets 700150000(n0000000 /OUO(X](XXXXXXXXXNO 0.00 910000000000000000 0.00 . / Income I ax txpense 615000000@0000000 {ET I'{COME AFTER TAX 915000000000000000 0.00 Page2 of 2

NAME OF |NSTIIUTK)I{ 0l{slmrnoil coD€l As of; DUE FROM BAT{KS CIAI'SIFI€D AS TO WPE OF ACC(ru NT (ln Absoht€ Pes Anontl

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.raBrL|TY ACCOUifrsv <1X 00oo0(xno8 10000 :.::t:t:::aJ;i i=w$& i W . +..\li.qiri l-.-.-d*il$f#si,,rii --tul >1{X *4X 10000qr825000 = 0.00 0.0c >6-10* oon >l().15t6 ona >1S-20ta ooa >20-2SX 150d)00mma5mm oo0 15Ooo(xn0d)8ss0m o robl hdr I |rHlid 15(x)0000ofl)800000 0.00 m 0.00 o ooo o.o0 I. SIUPAYAAE s],,; W o.00 *4 >44% !zolwwmE3mm to-t q* >2G259 120 100000q'0850000 ov.r 25% r20100000(X)085som T6l- Bllk P.hhL accRuED tmRsoil FrtNcr[ uatltrFs 0.0 noo 0.00 D o orl c 0.00 \l$tt I N lft [:,]il:i$,$N\$ilift lf :.' 11 i\Ss Nft'i;l;; :*u;:ilitr'[#]ttu t -\ l $W ooo K >14% x-10% >10-1S* ffi 0.00 F o00 00 0.m OM o ooa ct ). fITilCt ffE PAWEFDAYABIF o.00 ooo >ts-)M >2G2SX oo0 000 ooe o.00 o.oo oon 0.o0 o00 M t308000000m805000 rc I 0_00 Tot:L otheB ntmom 00c ooo 0.00 0.00 oo o.00 000 om o.m noo 0.00 ooo 000 cuMu|'AnvE IET POSmOT 0.00 o.m 0.0c 0.00 ooo 0.00 0.00 000 Additional Intorh.tion: A. Inteei Rate per Annum - Loans and Receivables A4ount Coda il06lml E t div. trrntmum lntered tot! B. lnterei Rate per Annun - Deposit Liabilities Acount Cod. ilomiMl ilanamum Interei 0t ) 1/ Presdted al nd 6rrying amount Pa3c 2 of 2

Schedule 4 NAME OF tfIflTruTtON (tt{SrmmoN coDE) As of: 1{5StA PREMISES, FURNIruRE, FIXTURE AND EQUIPMENT (ln Absolute Peso Amountl Particula]s Account Code Cost Accumulated Depreciation Allowance For Losses Net GnyinS funount I Land 5005000200m00000 0.00 uulorng 50050002500000000 0.00 3 Furniture and Fixtures |.5005fi)o3m0000000 0.00 4 Information Technolosv IlTl Eouioment 50050m350000(xn0 0.00 5 Other Office Equipment 15005000rrc00000m0 0.00 6 Transportation Equipment 15005000450o000fi)0 0.00 7 Leasehold Rishts and lmorovements 15005m065000000m 0.00 8 NSSLA Premises, Furniture, Fixture and Eouioment- Under Finance Lease rs0050m5m00000m 0.00 o_00 0.00 0.00 a. Land t50050005005000m0 o.m EUilOrng r5005000501m0m00 0.00 c. Furniture and Fixtures 15005m0501smflm 0.00 d. Information Technolosv (lT) Eouioment l500500os02m(xnm 0.00 e. OtherOfficeEouioment 15005m05025000m0 0.00 Transportation Equioment l5005mo503m0dm 0.00 s. Leasehold Rishts and lmorovements r5005m0503500flm 0.00 Increment 1s0050005500(n0000 0.00 0.00 0.00 0.00 Land 150050m5sosm{nn 0.00 b. Buildins 15005000s51000m00 0.00 and Frxtures 150050005515000000 0.00 d. Information Technoloev (lT) Eouioment 15005m05s2moflno 0.00 e. OtherOfficeEouioment 150050005525000000 0.00 ranSportatton tquipment 15005000s530000000 0.00 g. NSSI-A Premises, Furniture, Fixture and Equipment- Under Finance Lease 1500500055350000m 0.00 0.00 0.00 0.00 R.1. Land 1s0050005s40000000 0.00 E.Z. buttdtng 150050005545000000 0.00 c.3. Furniture and Fixtures t 50050005550000000 0_00 2.4. Information Technolosv {lT) Eduioment 150050005555000000 0.00 9.5. Other Ojfice Equipment r500500055500000m 0.00 R.5. TransoortationEouioment t500s0005555000000 0.00 builorng uncter Lonstruction 1s0050005000000000 0.00 OTAI NSSLA P]€miset Furniture, Fixture and Eouioment r5005000000000m00 0.00 0.00 0.00 0.00

NIIME OF tNSnTUT|ON (tNSnTUnON CODCI As of: REAL AND OTI{ER PROP€RTIES ACQUIRED (ROPAI /NONTURRENTASSETS HETD KIR SATE INCAHSI {ln Absolute Peso Amountl Particulalr Accdnt Code S€q ilo C6t A@mulated D€p.eclatlff All*ance For los ta€t Carrylnt Amount Falr ValueV 2 Building 0.00 lother Propertics Acquired 0.00 ooo 0.00 0.00 o.oo o.oo ooo o&1 .501ooo(x)ooooo@oo om om coo 2 Euildinr 150150002500000000 0.00 3 Other Propenies Acquired 150150006000000000 0.co 0.00 0.00 0.00 0.00 1 0.00 rOTAT 0.00 0.00 0.00 0.0{, 0.00 t. Amount of ROPA reclassified to NSSLA premises, Fumiture, Firt*" 15010000000061@oo Equipment durint the year "^d 0.c0 t. Amount of RopA rcclassified from NssLA prcmises, rurnituE, Fixuu-na ---lrujmenlduri nr the vear o.c0 t/ F.i. v.lu..s otcnd offsc.l/alend.. peid

E 2 2 = 2 o o I 2 E t t , t -

Schedule 6-A NAME OF |NSTITUT|ON (|NST|TUT|ON CODE) As of: BREAKDOWN OF CAPITAI. CONTRIBUTION (ln Absolute Peso Amount) Range of Total Capital Contribution of Each Member Account Code Number of Members Total Capital Contribution Fixed Capital Contribution Capital Contribution Buffer < 1,000 Joso00000000620500 1,000 - 49,999 t05000000000521000 t0,000 - 99,999 0.00 3050000f)0()()n6?1 qnn too,000 - 1g9,g9g 0.00 200,000 -299,999 0.00 300,000 - 399,999 0.00 0.00 !q0,000 - 4e9,e9s i00,000 -799,999 0.00 t00,000 - 999,999 0.00 1,000,000 - 1,ggg,ggg 0.00 5USUUUUUUUUUb25OOO 2,000,000 - 2,999,999 0.00 1050000000()()6? qsnn 1,000,000 - 4,999,999 0.00 l(.|qnnnnnnnnna > 4,9gg,ggg 0.00 305000000000626soo roTAt 0.00 0 0.00 0.00 0.00