Amendments on the Treatment of Other Comprehensive Income in the Computation of Basel III Risk-based Capital

BANoKo SeNrnnL NG PII.IpINAs OFFICE OF THE GOVERNOR C|RCULAR NO. 934 Series of 2Ot6 Subject: Amendments on the Treatment of Other Comprehensive Income in the Computation of Basel lll Risk-based Capital Pursuant to Monetary Board Resolution No. 2167 dated 01 December 201.6, the following amendments to the Appendices of the Manual of Regulations for Banks (MORB) and Manual of Regulations for Non-Bank Financial lnstitutions (MORNBFt) and the Financial Reporting Package are approved as follows: Section 1. Part ll Qualifying Capital of Appendix 63b/Appendix e-46 to Section Xll5lSubsection 4115Q.1 (2008-4116Q) of the MORB/ MORNBFt on the Risk-Based Capital Adequacy Framework for the Philippine Banking System is hereby amended as follows: "Part ll. Qualifying Capital xxx Section A. Domestic Banks CET1 Capital 3. CET1 capital consists of: a' Paid up common stock issued by the bank that meet the eligibility criteria in " App.63b/App. Q-46 Annex A" XXX g. Other comprehensive income (1) Net unrealized gains or losses on available for sale (AFS) securities3; and (2) Cumulative foreign currency translation; (3) Remeasurement of Net Defined Benefit Liability/ (Asset) ; (4) Gains/ (Losses) on Fair value Adjustments of Hedging Instruments; and (a) Cash Flow Hedge; and (b) Hedge of a Net rnvestment in Foreign operations (5) others (indicat.e t.he nature and amount of the account,s lodged) h. Minority interest xxx XXX A. fJabini st. [,1alate 1004 Manra phitipptnes. 1632)70s 7701 . n,n,n.bsp gov ph . bspmail@)bsp.gov.ph

Section B. Branches of Foreign Banks "CET1 capital 10. CET1 capital shall be comprised of: xxx e. Other comprehensive income (1) Net unrealized gains or losses on available for sale (AFS) securities3; an'd (21 Cumulative foreign currency translation; (3) Remeasurement of Net Defined Benefit Liability/ (Asset; ; (4) Gains/ (Losses) on Fair Value Adjustments of Hedging Instruments,' and (a) Cash FLow Hedge; and (b) Hedge of a Net Investment in Foreign operations (5) 3 Others (indicate the nature and amount of the accounts lodged) "Regulatory adjustments to CET1 capital xxx" Section 2. Financial Reporting Package for Banks (FRP)/Simplified Financial Reporting Package for Rural and Cooperative Banks (Simplified FRP). 1. The Manual of Accounts section under the Financial Reporting Package/Simplified Financial Reporting Package for Banks is hereby amended to read as follows: Manual of Accounts "xxx "Egi!@!g "xxx "8. Other Comprehensive Income t'xxx "(c) Cumulative Foreign Currency Translation - xxx "xxx "(ii) Exchange differences arising on a monetary item that forms part of a reporting bank's net investment in a foreign operation denominated in the functional currency of the foreign operation.

"(d) Remeagurements of Net Defined Benefit Liability (Asset) This refers to remeasurements of the net defined benefit liability (asset) made in accordance with PAS L9 "Employee Benefits,,. "(e) uet Unrealized Gains/ (Loeees) on Fair Va1ue Attributable to Changes in Own Credit Risk of Financial Liabilities Designated at Fair Value Through Profit or LosE This refers to gains/ (losses) resulting from change in the fair value of financial liabilities designated at fair value through profit or Ioss where such gains/ (losses) are attributable to changes in the bank's own credit risk as provided under PFRS 9. (For early adopters of PFRS 9 on the classification of financial liabilities) (df) Others - This refers to Other Comprehensive Income that cannot be appropriately classified under items (a)r{b)+nd{e} to (e) above. "9. Appraisal Increment Reserve xxx xxx" 2. Report Schedule The revised reporting templates for the Balance Sheet under the FRP and Simplified FRP, attached as Annexes A and B, respectively, shall take effect as of end-March 20L7. Pending the specific guidelines on the availability and submission of the revised FRP/Simplified FRP, items (d) and (e) of Other Comprehensive Income account shall continue to be reported as "Other Comprehensive Income - Others". Section 3. Effectivity. This circular shall take effect fifteen (15) calendar days following its publication either in the Official Gazette or in a newspaper of general circulation. FOR THE MONETARY BOARD: AMAND 4l December 2016

.- ANNEX A Flnancial Reportlng Package for Banks Balance Sheet Schedule BS Fonalgn Rogular FCDU/EFCDU Forclqn Ofnca! Peso Account D.rcrlptlon Account Code Pe3o Peso Pcso Total Account3 lnUS$ InUS3 InUSI Equlv. Equiv. Equhv. l$et Accounts Cash on Hand 1 05050000000000000 0.00 '2) Checks and Other Cash ltems 1 051 00000000000000 0.00 Due ftom Banoko Sentral no Pilioinas 1 051 50000000000000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (a) DemandDeDositAccount 1 051 50500000000000 0.00 (b) Res€rve DeDositAccount I 05151000000000000 0.00 (c) So€cialDeoositAccounl 1 051 51 500000000000 0.00 (d) Others 1 051 52000000000000 0.00 4) DueftomOtherBanks I 05200000000000000 0.00 5) Financial Assets Held for Trading (HFT) 1 1q)0q)000000000q) 0.00 0.00 0.00 0.00 o.00 0.o0 0.00 0.00 (a) HFT Securities I 10050000000000000 0.00 (b) Derivawes with Positive Fair Value Held tur Tradino 1 101000000000(X)000 0.00 (c) Derivativ€s Canied at Cost 1 101 50000000000000 0.00 5) Financial Assets Desionated at Fair Valu6 throuoh Profit or Loss 1 5000000000000000 0.00 7) Available-br-Sale (AFS) FinancialAssets 1 20000000000000000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (i) AFS Debt Securitres 1 2q)01 500000000000 0.00 U n a m ort ize d D iscou nUP r e m iu m 1 70050000000000000 0.00 AFS-Debt Securities Net of Amortization 1 2q)01fi)000000fi)00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 {iil AFS Eouitv Securites I 20002000000000000 0.00 A ccu m u I ate d M arkel Gainslflosses) 1602q)0000000q)000 0.00 Less : Allowance tor Credif Losses I 65200000000000000 0.00 AFS Financial Assets - Nel 1 952000000000ff)o00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 H6ld-b-Maturitv (HTM) Financhl Assets 1 25000000000000m0 0.00 U namortized D iscou nvPre m iu m 1 70250000000000000 0.00 HTM Financial Assets - Net of Amortizaton 1 25m1000000000000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Less: Allowance for Credil Losses 1 65250000000000000 0.00 HTM Financial Assets - Net 1 952500000(X)000000 0.00 0.o0 0.00 0.00 0.00 0.00 0.00 0.00 :9) Unouoted Debt Securities Classified as Loans I 30000000000000000 0.00 U n amortized Discou n VPre miu m 1 70300000000000000 o.00 Unquoted Debt Securities Classified as Loans -Net of Amortization I 30001 000000000000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Less Allowance for C,'ed,l Losses 1 65300000000000000 0.00 Unouoted D€bt Securif€s Classified as Loans - Net 1 95300000000000000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 :10) Investrn€nts in Non-Marketabl€ Equiv Securities (INMES) 1 3500000q)000q)000 0.00 Less: Allowance fol Credil Losses 1 65350000000000000 0.00 INMES - Net 1 953500000000q)o00 0.00 0.00 0.00 0.00 0.00 0.00 11 1) Loans and Receivables 1 '10000000000000000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (a) Loans b Banqko Sentral nq Pilipinas 1 t100500000000q)000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (i) Maturino within 1 vear 1,t005m005000m000 0.00 (iil Maturino bevond 1 wal 1,t005(x)O10O(x)(x)O00 0.00 (b) lnterbank Loans Receivable 1 /10100000000000000 0.00 Less: Allowance for Credil Losses 't65100000(x)000fi)o0 0.00 lnteoank Loans Recevable-Net 1 95401 000000000000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (c) Loans and Receivabl€s -Other 1 401 50000000000000 0.00 Unamortizect Dlscount encl Other Defeftecl Crectits 1 70350000000000000 0.00 Loans and Receivables - Othe6 - Net of Amortization 1 401 50300000000000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Less: Allowance tor Credil Losses 1 651 50000000000000 0.00 Loans and Receivables -Othec - Net of Speclfa Allowance for Crcdit Losses 1 401 50500000000000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

ANNEX A Financial Reporting Package for Banks Balance Sheet Schedule BS Forelgn Regular FCDU'EFCDU For€lgn Ofnce3 Account De3cription Peso Account Code Pero P6ro Pero Total Accounts InUSI Equlv. InUSt Equlv, nUSt Equiv. (1 2) Loans and Receivables Arising ftom Repurchase Agreements, Certificates of 1 40200000000000000 0.00 AssignmenuParticipation with Recourse, and Securities Lending and Borowing Transactions Less Allowance for Credil Losses 1 651 80000000000000 0.00 loans and Receivables Arising fiom RA/CA/PR/SLB - Net of Specific Allowance for Credit 1 95402000000000000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Less; General Loan Loss Provision (GLLP) 1 751 50000000000000 0.00 -oan Portfolio Nel 1 95400000000000000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 13) Derivawes with Positive Fair Vatue Held for Hedqinq 1 45050000000000000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (a) Fair Value Hedoes 1 45051 000000000000 0.00 (b) Cash FlowHedges 1 45052000000000000 0.00 (c) Hedqes of a Net Investment in Foreion ODeration 1 45053000000000000 0.00 (d) Portfolio Hedge of Interest Rate Risk 1 45054000000000000 0.00 1!) Revaluation of Hedged Assets in Portfulio Hedge of InteGst Rate Risk 1 451 00000000000000 0.00 15) Sales Contract Receivable 1 451 50000000000000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (a) Performing 1 45151000000000000 0.00 (b) Non-Performilg 1 451 52000000000000 0.00 UnamutEed Discount and Other Defened Credits 1 70450000000000000 0.00 Sales Contract Receivable - Net of Amoritration 1 451 53000000000000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Less. Allowance for Cred,l Losses 1 65451 500000000000 0.00 Sales Contract Receivable - Nel 95451 500000000000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 16) Accrued Interest Income from FinanchlAssets 45200000000000000 0.00 Less: Allowance for Credil Losses 65452000000000000 0.00 Accrued Interest Income fiom FinancialAssets - Net 95452000000000000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 17) Equity Investment in Subskliaries, Associates and Joint Ventures 45250000000000000 0.00 Less: Allowance for C/.edif Losses 65452500000000000 0.00 Equtty Investment in Subsidiaries, Associates and Joint Ventures - Net 95452500000000000 0.00 0.00 0.00 0.00 18) Bank Premises, Fumiture, Firiure and Equipment 50050000000000000 0.00 Less : Accu mu late d De Dreciation 1 E5050000000000000 0.00 Less. Allowance for Losses 80050000000000000 0.00 Bank Premises, Fumiture, Fixture and Equipment - Net 1 95500500000000000 0.00 0.00 0.00 0.00 19) Real and Other Properties Acquired 501 00000000000000 0.00 Less: Accumulated Deoreciation 1 851 00000000000000 0.00 Less. Allowance for Losses 801 00000000000000 0.00 Realand Other Prooerties Acouircd - Net 95501 000000000000 0.00 0.00 0.00 0.00 0.00 0.00 Non-CunEnt Assets Held for Sale 501 50000000000000 0.00 Less: Allowance for Losses 0.00 Non-Cunent Assets Held fur Sale - Net 0.00 0.00 0.00 0.00 0.00 0.00 121) Goodwill 1 50200000000000000 0.00 Less Allowance /or Losses 1 E0200000000000000 0.00 Goodwill - Net 1 95502000000000000 0.00 0.00 0.00 0.00 0.00 0.00 ) Other Intanqible Assets 1 50250000000000000 0.00 Le ss : Accu m ulated A mortization 1 90250000000000000 0.00 Less: Allowance for Losses I E0250000000000000 0.00 Intangible Assets - Net 1 95502500000000000 0.00 0.00 0.00 0.00 0.00 0.00 ) Defened Tax Asset | 55050000000000000 0.00 24) OtherAssets I 551 00000000000000 0.00 Less: Allowance for Losses 1 60300000000000000 0.00 Other Assets - Nel 1 95551 000000000000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

ANNEX A Flnancial Reportlng Package for Banks Balance Sheet Schedule BS Fortlgn R.gular FCDU'EFCDU FoEign Ofncer Peso Account Darcrlpllon Account Code Paso Pcro Pero Total Account3 InUS$ InUSI nUS$ Equiv. Equhv. Equlv. Due friom Head Office/Branches/Aqencies (PhiliDpine branch of a foreiqn bank) 1 55250000000000000 0.00 26) DuoftomFCDU/RBU 1 55300000000000000 fotrlA.3.{! 1 00000000000000000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 lablllty Account3 1) Financhl Liabilitibs Held br Tradinq 205000fino00000000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (a) Derivawes with Negative Fair Value Held for Tradinq 205050(xrcou)000000 0.00 (b) Lbbility tur Short Posi0on 2051 00000000000000 0.00 2) Financial Liabilities Designated at Fair Value thiough Profit or Loss 210000000(X)0000000 0.00 3) Deposit Lhbilitbs 21 5000000000000000 0.00 0.00 0.00 0.00 0.00 0.00 (a) D€mand Deposits 21 5050000000000000 0.00 (b) Savings DeposiF 21510000000000m00 0.00 (c) NOWAccounts 2152000m0000m000 0.00 (d) Time Certificate of Deoosib 215150000m0000000 0.00 (€) LTNCD 21525UXXn000m0fi) 0.00 4) DuebOtherBanks 220050fino00000000 0.00 Biils Payabl€ 2201000000m000000 0.00 16) Bonds Pavable 2201 50000000000000 0.00 U nam ortized Eond Discou nuPrem iu m 2351 50000000000000 0.00 Bonds Pavable - Net 295201 5q)0000q)o00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7) Unsecur€d Subordinated Debt 220200000000000000 0.00 U n amortized De bt D iscounUPre miu m 23520000(XD00(x)u)o 0.00 Uns€cur€d Subordinabd Debt - Net 295202UXXn00000U) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Redeemable Prebned Shar€s 220250000000000000 0.00 '9) Financial Liabilities Associated with Transfened Assets 225050000000000000 0.00 l0) Dedvatives with Negative Fair Value Heb fur Hedoinq 2251 00000000000000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (a) FairValueHedo€s 2251 01 000000000000 0.00 (b) Cash FlowHedqes 225 1 02000000000000 0.00 (c) Hedoes of a Net lnvestment in Foreion ODeralbn 2251 03000000000000 0.00 (d) Portblio Hedqe of Inter€st Rate Rbk 22510lt000000000m0 0.00 '1 1) Revaluatbn of Hedged Liabilities in Porttolio Hedge of Interest Rate Risk 2251 5(XXDO0000(X)O0 0.00 12) Accrued Interest Exp€nse on FinanchlLiabilitres 22520m00000000000 0.00 13) Finance L€ase Paynent Payable 22525000(x)(XX)00000 0.00 14) SpecialTime Deoosit 220300000000000000 0.00 15) Due to Treasur€r of the PhilioDines 230050000000000000 0.00 16) Treasumr/Cashier/Manage/s Checks 2301 00000000000000 0.00 17) Payment Orders Payable 2301 50000000000000 0.00 18) Margin Deposits on LCs and Customers' Liability on Bills/Drafts under LCs and/or TRs 23020000m000mo(x) 0.00 9) Cash Letters of Credil 23025ffXxno00moq) 0.00 20) OuFtanding Acceptances Ex€cuEd by or tur Account of this Bank 23030fiXxno00mou) 0.00 11) Due b Bangko Senfal ng Pilipinas 23035UXXn000m000 0.00 22) Due to PhiliDoine DeDosit Insurance Corooration 2304000m000000000 0.00 [23) Due to Philippine Crop Insurance Comoration 230450000000000000 0.00 t24) hcomeTaxPavable 230500000000000000 0.00 Other Taxes and Licenses Payable 230550000000000000 0.00 126) Accrued Expenses 230600000000000000 0.00 i27) Uneamed Income 230650000000000000 0.00 3) Debned Tax Liabilities 230700mo(X)u)(X)o00 0.00

ANNEX A Flnanclal Reportlng PackageforBanks Balance Sheet Schedule BS For€iqn Resular FCDU'EFCDU Foreiqn Offices Peso Account Description Account Cod6 Peso Peso Po!o Total Accountg InUSi Equiv. InUS$ Equiv, InUSI Equiv. Provisions 230750000000000000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (a) Pensions and Other Post Retirement Benefit Obliqations 230751 000000000000 0.00 (b) Others 230759000000000000 0.00 130) Other Liabilities 230800000000000000 0.00 |1) Due to Head Office/Branches/Aoencies (Philiooine branch ofa foreion bank) 230850000000000000 0.00 :32) Due to FCDU/RBU 230900000000000000 fotal Llabilitieg 200000000000000000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Equity Accounts Pakl in Capital Stock 305000000000000000 0.00 0.00 0.00 0.00 0.00 0.00 (a) Common Stock 305050000000000000 0.00 (b) Perpetual and Non-Cumulative Prefened Stock 3051 00000000000000 0.00 (c) PetDefual and Cumulative Prefefied Stock 3051 50(X)0000000000 0.00 l2) Additonal Paid-in Capital 305200000000000000 0.00 Other Eouiw Instruments 310000(X)000000(X)00 o.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (a) Hybril Tier 1 31 0030000000000000 0.00 (b) Eouiv ComDonent of Comoound Financial Instruments 31q)50q)000q)0q)00 0.00 (c) Others 31 0900000000000000 0.00 4) DeDosib brStock SubscriDton 305250000000000000 0.00 0.(X) 0.00 :5) Retained Eaminqs 3 1 5000000000000000 0.00 0.00 0.00 0.00 0.00 0.00 (a) Retained Eaminos ReseNe 31 505q)00000000000 0.00 0.00 0.00 0.00 0.00 0.00 (i) Trust Business 31 5051000000000(X)0 0.00 (ii) Self-insurance 31 5052000000000000 0.00 (iii) Continqencies 31 5053000000000000 0.00 (iv) Others 31 5059000000000000 0.00 (b) Retained Eaminqs Free 31 51 00000000000000 0.00 16) Stock Oividend Distributable 31 51 20000000000000 0.00 7) Undiviled Profits 31 51 50000000000000 0.00 18) Other Comprehensive Income 320000000000000000 0-00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 tat Ner unteatzeo uansttlossest on AFs Ftnanctat Assels 320050000000000000 0.00 0.00 0.00 0.00 0.o0 0.00 0.00 0.00 (i) Debi Securities 320051 000000000000 0.00 (ii) EouiV Securities 320052000000000000 0.00 (b) Gainv(Lossss) on Fair Value Adiustment of Hedqinq Instruments 320't 00000000000000 0-00 0.00 0.00 0.00 0 .00 0.00 0.00 0.00 (i) Cash Flow Hedqe 3201 01 000000000000 0.00 (ii) Hedqe of a Net lnvestment in Foreiqn Operations 3201 02000000000000 0.00 (c) Cumulative Foreiqn Cunency Transhtion 3201 50000000000000 0.00 (d) RemeasuremenEs of Net Defined Benefit Liability/(Asset) 0.00 (e) NeL Unrealized Gains/(Losses) on Fair vaLue AtLributabl-e to changes in 0.00 om credit Risk of Finilcia1 Liabiliti-es DesiqnaEed at Fair value Through Profit or Loss (d0 Others 320900000000000000 0.00 AoDraisal Incement Reserve 325050000000000000 0.00 110) Treasury Stock 3251 00000000000000 0.00 1) Minoritv lnterest in Subsidiaries (for consolidated reoort onlv) 3251 50000000000000 0.00 112) Assiqned Capit?l 325200000000000000 0.00 fotal Eoulw 300000000000000000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total Llabllltle3, Mlnorlty Inter€st and EqulW 900000000000000000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 roent Accounts 400000000000000000 0.00

ANNEX B Simplified FRP for Rural Gooperative Banks Schedule BS Balance Sheet Foreign Regular FCDU/EFCDU Foreign Offices Peso Account Description Peso Peso Peso Total Accounts InUS$ Equiv. InUS$ Equiv. InUS$ Equiv. Asset Accounts (1) Cash on Hand 0.00 (2) Checks and Other Cash ltems 0.00 (3) Due from Bangko Sentral ng Pilipinas 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (a) Demand Deposit Account 0.00 (b) Reserve Deposit Account 0.00 (c) Special Deposit Account 0.00 (d) Others 0.00 (4) Due from Other Banks 0.00 (5) Financial Assets Held for Trading (HFT) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (a) HFT Securities 0.00 (b) Derivatives with Positive Fair Value Held for Tradinq 0.00 (c) Derivatives Carried at Cost 0.00 f6) Financial Assets Desiqnated at Fair Value throuqh Profit or Loss 0.00 (7) Available-for-Sale (AFS) Financial Assets 000 0.00 0.00 0.00 0.00 0.00 0.00 000 (i) AFS Debt Securities 000 U n amortized Discou nUPrem i um 0.00 AFS-Debt Securities Net of Amortizalion 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (ii) AFS Equity Securities 0.00 Accumulated Markel GarnVllosses) 0.00 Less : Allowance for Credil Losses 0.00 AFS Financial Assets - Net 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 E) Held-to-Maturitv (HTM) Financial Assets 0.00 U n a moft ized D i s cou nt/P re m i u m 0.00 HTM Financial Assets - Net of Amortization 0.00 0.(x) 0.00 0.00 0.00 0.00 0.00 0.00 Less: Allowance for Credit Losses 0.00 HTM Financial Assets - Net 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 :9) Unquoted Debt Securities Classified as Loans 0.00 U namoft ized Discount/Pre m i u m 0.00 Unquoted Debt Securities Classified as Loans -Net of Amortization 0.00 0.00 0.(n 0.00 0.00 0.00 0.00 000 Less: Allowance for Credll Losses 0.00 Unouoted Debt Securities Classified as Loans - Net 0.00 0.00 0.00 0.00 0.00 0.00 0.00 000 10) Investments in Non-Marketable Equity Securities (INMES) 0.00 Less: Allowance for Credff Losses 0.00 INMES - Net 0.00 0.00 0.(x) 0.00 0.00 0.00 11) Loans and Receivables 0.00 0.00 0.00 0.(x) 0.00 0.00 0.00 0.00 (a) Loans to Banqko Sentral nq Pilioinas 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 i) Maturinq within 1 year 0.00 (ii) Maturing beyond 1 year 0.00 (b) Interbank Loans Receivable 000 Less: Allowance for Credit Losses 000 Interbank Loans Receivable-Net 0.00 0.00 0.00 0.m 0.(x, 0.00 0.00 000 (c) Loans and Receivables -Others 0.00 Unamoftized Discount and Other Deferred Credits 0.00 Loans and Receivables - Others - Net of Amortization 0.00 0.00 0.00 0.00 0.00 0.00 0.00 000 Less: Allowance for Credft Losses 0.00 Loans and Receivables -Others - Net of Soecific Allowance for 000 0.00 0.00 0.00 0.00 o.(X) 0.00 0.00 Credit Losses 12) Loans and Receivables Arising from Repurchase Agreements, 0.00 Certificates of AssignmenVParticipation with Recourse, and Securities Lending and Borrowing Transactions Less: Allowance for Credrt Losses 0.00 Loans and Receivables Arising from RA./CA"/PRI/SLB - Net of 0.00 0.00 0.00 0.00 0.00 0.00 o.oo 0.00 Specific Allowance for Credit Losses '-ess: General Loan Loss Provision (GLLP) 000 -oan Portfolio Net 0.00 0.00 0.00 0.00 0.00 0.00 0.00 000

ANNEX B Simplified FRP for Rural Gooperative Banks Schedule BS Balance Sheet Forelgn Regular FCDU/EFCDU Foreign Offices Peso Account Description Peso Peso Peso Total Accounts InUS$ Equiv. lnUS$ Equiv. lnUS$ Equiv. 13) Derivatives with Positive Fair Value Held for Hedoino 0.00 0.00 0.00 0.00 0.(x) 0.00 0.00 0.00 (a) Fair Value Hedqes 0.(x) (b) Cash Flow Hedqes 0.00 (c) Hedges of a Net Investment in Foreiqn Operation 0.00 (d) Portfolio Hedqe of Interest Rate Risk 0.00 14) Revaluation of Hedged Assets in Portfolio Hedge of Interest Rate Risk 0.00 15) Sales Contract Receivable 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (a) Performing 0.00 (b) Non-Performinq 0.00 Unamodized Discount and Other Deferred Credits 0.00 Sales Contract Receivable - Net of Amoritzation 0.00 0.00 0.@ 0.00 0.(X) 0.00 0.00 0.00 Less: Allowance for Credit Losses 000 Sales Contract Receivable - Net 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 16) Accrued Interest Income from Financial Assets 0.00 Less: Allowance for Credit Losses 0.00 Accrued Interest Income from Financial Assets - Net 000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 17) Equity Investment in Subsidiaries, Associates and Joint Ventures 0.00 Less: Allowance for Credrt Losses 0.00 Equity Investment in Subsidiaries, Associates and Joint Ventures - Net 0.00 0.00 0.00 0.00 18) Bank Premises, Furniture, Fixture and Equipment 0.00 Less: Accumulated Depreciation 0.00 Less: Allowance for Losses 0.00 Bank Premises, Furniture, Fixture and Equipment - Net 0.00 0.00 0.00 0.00 19) Real and Other Properties Acouired 0.00 Less: Accumulated Depreciation 0.00 Less: Allowance for Losses 0.00 Real and Other Prooerties Acouired - Net 000 0.00 o.00 0.(x) 0.00 0.00 20) Non-Current Assets Held for Sale 0.00 Less: Allowance for Losses 0.00 Non-Current Assets Held for Sale - Net 0.00 0.00 (21) Goodwill 0.00 Less: Allowance for Losses 0.00 Goodwill - Net 0.00 0.(x) 0.(n 0.00 0.00 0.00 i22) Other Intanqible Assets 0.00 Less: Accumulated Amoftization 0.00 Less: Allowance for Losses 0.00 Intanqible Assets - Nel 0.00 0.00 0.00 0.00 o.00 0.00 123) Deferred Tax Assel 0.00 124) Other Assets 0.00 Less: Allowance for Losses 0.00 Other Assels - Net 0.00 0.00 0.00 0.00 0.00 0.m 0.00 0.00 25) Due from Head Office/Branches/Agencies (Philippine branch of a foreign 0.00 bank) '26) Due from FCDU/RBU fotal Asseb 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 tiabilitv Accounts 1) Financial Liabilities Held for Tradinq 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (a) Derivatives with Neqative Fair Value Held for Tradinq 0.00 (b) Liability for Short Position 0.00 (2) Financial Liabilities Desiqnated at Fair Value throuoh Profit or Loss 0.00 (3) DepositLiabilities 0.00 0.00 0.00 0.00 0.00 0.00 (a) Demand Deposits 0.00 (b) Savings Deposits 0.00 (c) NOW Accounts 000 (d) Time Certificate of DeDosits 0.00 (e) LTNCD 0.00 4) Due to Other Banks 0.00 5) Bills Pavable 0.00

ANNEX B Simplified FRP for Rural Cooperative Banks Schedule BS Balance Sheet Foreign Regular FCDU/EFCDU Foreign Offices Peso Account Description Peso Peso Peso Total Accounts InUS$ Equiv. InUS$ Equiv. InUS$ Eouiv. (6) Bonds Payable 0.00 U n amortized Bond Discount/Prem i u m 0.00 Bonds Pavable - Net 0.00 0.00 0.(x) o.oo 0.00 0.00 0.00 0.00 7l Unsecured Subordinated Debt 0.00 Unamoftized Debt DiscounUPremium 0.00 Unsecured Subordinated Debt - Net 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (8) Redeemable Preferred Shares 0.00 :9) Financial Liabilities Associated with Transferred Assets 0.00 '10) Derivatives with Neqative Fair Value Held for Hedqinq 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (a) Fair Value Hedqes 0.00 (b) Cash Flow Hedqes 0.00 (c) Hedqes of a Net Investment in Foreiqn Operation 0.00 (d) Portfolio Hedge of Interest Rate Risk 0.00 (1 1) Revaluation of Hedged Liabilities in Portfolio Hedge of Interest Rate Risk 0.00 12) Accrued lnterest Expense on Financial Liabilities 0.00 '13) Finance Lease Payment Payable 0.00 14) Special Time Deposit 0.00 15) Due to Treasurer of the Philippines 0.00 16) Treasurer/Cashier/Manaqer's Checks 0.00 17) Pavment Orders Pavable 0.00 '18) Margin Deposits on LCs and Customers' Liability on Bills/Drafts under 0.00 LCs and/or TRs 19) Cash Letters of Credit 0.00 20) Outstanding Acceptances Executed by or for Account of this Bank 0.00 21) Due to Bangko Sentral ng Pilipinas 0.00 '22\ Due to Philippine Deposit Insurance CorDoration 0.00 123) Due to Philippine Crop Insurance Corporation 0.00 24) lncome Tax Payable 0.00 25) Other Taxes and Licenses Payable 0.00 26) Accrued Exoenses 000 27) Unearned lncome 0.00 8) Deferred Tax Liabilities 0.00 29) Provisions 0.00 0.00 0.00 0.(n 0.00 0.00 0.00 0.00 (a) Pensions and Other Post Retirement Benefit Obligations 0.00 (b) Others 0.00 30) Other Liabilities 000 31) Due to Head Office/Branches/Agencies (Philippine branch of a foreign 0.00 bank) 32) Due to FCDU/RBU Iotal Liabilities 000 0.oo 0.00 0.00 0.00 0.00 0.00 0.00 :quiw Accounts 1) Paid in Capital Stock 0.00 0.(x) 0.00 0.00 0.00 0.00 (a) Common Stock 0.00 (b) Perpetual and Non-Cumulative Preferred Stock 000 (c) Perpetual and Cumulative Preferred Stock 0.00 (2) Additional Paid-in Capital 0.00 (3) Other Equity Instruments 0.00 0.00 0.00 0"00 0.00 0.m 0.00 0,00 (a) Hybrid Tier 1 0.00 (b) Equitv ComDonent of Comoound Financial lnstruments 0.00 (c) Others 000 i4\ Deposits for Stock Subscription 0.00 :5) Retained Earninos 0.00 0.00 0.q) o.00 0.00 0.00 (a) Retained Earninqs Reserve 000 0.00 0.00 0.00 0.00 0.00 (i) Trust Business 0.00 (ii) Self-insurance 0.00 (iii) Contingencies 0.00 (iv) Others 0.00 (b) Retained Earnings Free 0.00 '6) Stock Dividend Distributable 0.00 7\ Undivided Profits 000

I ,i ?( AilNEX B r .r ' I Slmpllficd FRP for Rural Goopcradw Banks Schcdulc BS Page4of 4 Balance Sh.ct At,tributabl-e to Changeg in Own Credit Risk of Financial Liabilities De8ignated at Fair Value Through Profit or Losa