STATEMENT OF MANAGEMENTS RESPONSIBILITY

FOR FINANCIAL STATEMENTS

The management of Security Bank Corporation (the Bank) is responsible for all the information and representations contained in the
financial statements as of and for the years ended December 31, 2010 and 2009 and the schedules referred therein as of December 31, 2010. The financial statements have been prepared in conformity with Philippine Financial Reporting Standards and reflected
amounts that are based on the best estimates and informed judgment of management with appropriate consideration to materiality.
In this regard, management maintains a system of accounting and reporting which provide for the necessary internal controls to
ensure that transactions are properly authorized and recorded, assets are safeguarded against unauthorized use or disposition and
liabilities are recognized. The management likewise discloses to the audit committee and to its external auditors: (i) all significant
deficiencies in the design or operation of internal controls that could adversely affect its ability to record, process and report financial
data; (ii) material weaknesses in the internal controls; and (iii) any fraud that involves management or other employees who exercise
significant roles in internal controls.
The Board of Directors (BOD) reviews the financial statements before such statements are approved and submitted to the Stockholders of the Bank.
SyCip Gorres Velayo & Co., the independent auditors appointed by the BOD, have audited the financial statements as of and for the
year ended December 31, 2010 of the Bank in accordance with Philippine Standards on Auditing and have expressed their opinion
on the fairness of presentation, upon completion of such audit, in their report to the Stockholders and the BOD.

FREDERICK Y. DY
Chairman of the Board

ALBERTO S. VILLAROSA
SA
President & Chief Executive Officer

CARLOS M. BORROMEO
Chief Financial Officer
SUBSCRIBED AND SWORN to before me this 5th day of April 2011, affiants exhibiting to me their residence certificates, as follows:
NAMES
Frederick Y. Dy
Alberto S. Villarosa
Carlos M. Borromeo

Doc. No. 74
Page No. 16
Book No. XV
Series of 2011.

RES. CERT. NO.

06011492
06011491
20207268

PLACE OF ISSUE
Makati City
Makati City
Manila

DATE OF ISSUE
February 28, 2011
February 28, 2011
February 28, 2011

FELIPE I. ILEDAN, JR.

Notary Public/Until Dec. 31, 2012
TIN 136 897 000/ROLL NO. 27625
PTR MLA 8237257//12/29/2009
4th flr. VGP Center 6772 Ayala, Mkti.
APPT. M-14 (20011-2012)
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INDEPENDENT AUDITORS REPORT

The Stockholders and the Board of Directors
Security Bank Corporation
6776 Ayala Avenue
Makati City

Report on the Financial Statements

We have audited the accompanying consolidated financial statements of Security Bank Corporation and
Subsidiaries (the Group) and the parent company financial statements of Security Bank Corporation (the
Parent Company), which comprise the statements of financial position as at December 31, 2010 and 2009,
and the statements of income, statements of comprehensive income, statements of changes in equity and
statements of cash flows for each of the three years in the period ended December 31, 2010, and a
summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with Philippine Financial Reporting Standards, and for such internal control as management
determines is necessary to enable the preparation of the financial statements that are free from material
misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted
our audits in accordance with Philippine Standards on Auditing. Those standards require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the entitys preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal
control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.

30

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of the
Group and of the Parent Company as at December 31, 2010 and 2009, and their financial performance and
their cash flows for each of the three years in the period ended December 31, 2010 in accordance with
Philippine Financial Reporting Standards.
Report on the Supplementary Information Required Under Revenue Regulations No. 15-2010
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as
a whole. The supplementary information on taxes and licenses in Note 40 to the financial statements is
presented for purposes of filing with the Bureau of Internal Revenue and is not a required part of the basic
financial statements. The information is also not required by Securities Regulation Code Rule 68. Such
information is the responsibility of the management of the Parent Company. The information has been
subjected to the auditing procedures applied in our audit of the basic financial statements. In our opinion,
the information is fairly stated in all material respects in relation to the basic financial statements taken as a
whole.

SYCIP GORRES VELAYO & CO.

Josephine Adrienne A. Abarca

Partner
CPA Certificate No. 92126
SEC Accreditation No. 0466-AR-1
Tax Identification No. 163-257-145
BIR Accreditation No. 08-001998-61-2009,
June 1, 2009, Valid until May 31, 2012
PTR No. 2641501, January 3, 2011, Makati City
March 29, 2011

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STATEMENTS OF FINANCIAL POSITION

Consolidated
Parent Company
As of December 31
2010
2009
2010
2009
(Amounts in Thousands)
ASSETS
Cash and Other Cash Items (Note 18)
=
P 2,420,849
Due from Bangko Sentral ng Pilipinas
(Note 18)
29,111,752
Due from Other Banks
16,596,266
Interbank Loans Receivable and Securities
Purchased Under Resale Agreements
926,800
with the Bangko Sentral ng Pilipinas
Financial Assets at Fair Value through Profit
22,937,711
or Loss (Note 8)
Financial Assets at Fair Value through Other
90,980
Comprehensive Income (Note 9)

Available-for-Sale Investments (Note 10)

Investment Securities at Amortized Cost
(Notes 11, 21 and 27)
13,428,717
Held-to-Maturity Investments (Notes 12, 21
and 27)

Loans and Receivables (Notes 13 and 32)

74,504,592
Investments in Subsidiaries and an Associate
(Note 14)
1,805
Property and Equipment (Note 15)
1,148,856
2,051,518
Investment Properties (Note 16)
31,761
Deferred Tax Assets (Note 28)
Intangible Assets (Note 17)
87,966
Other Assets (Note 17)
3,152,533
=
P 166,492,106
TOTAL ASSETS

LIABILITIES AND EQUITY

LIABILITIES
Deposit Liabilities (Notes 18 and 32)
Demand
Savings
Time
Financial Liabilities at Fair Value through
Profit or Loss (Note 19)
Derivative Liabilities Designated as Hedges
(Note 20)
Bills Payable and Securities Sold Under
Repurchase Agreements (Note 21)
Acceptances Payable (Note 13)
Margin Deposits and Cash Letters of Credit
Managers and Certified Checks Outstanding
Income Tax Payable
Subordinated Note (Note 22)
Accrued Interest, Taxes and Other Expenses
(Note 23)
Other Liabilities (Note 24)
TOTAL LIABILITIES
(Forward)

32

=
P 2,388,608

=
P 2,420,642

=
P2,388,400

12,062,184
5,261,789

29,111,752
16,054,601

12,062,184
4,852,895

8,407,000

926,800

8,407,000

9,063,482

22,933,894

9,029,971

4,083,984

48,810

4,041,198

13,389,501

29,785,618
69,900,802

73,287,740

29,785,618
68,435,207

2,622
1,979,244
1,254,967
1,134,158
2,114,819
457,790
22,735
13,242
88,502
74,869
1,813,363
3,068,382
=
P 146,250,475 =
P 164,901,425

1,979,244
1,242,472
484,706

73,738
1,737,084
=
P 144,519,717

P 31,094,132
=
55,802,605
23,696,570
110,593,307

=
P 26,516,862
58,932,223
23,075,886
108,524,971

=
P 31,213,504
55,949,619
23,696,570
110,859,693

=
P26,618,597
59,126,764
23,075,886
108,821,247

4,693,385

2,943,604

4,693,385

2,943,604

218,967

98,927

218,967

98,927

16,676,786
653,946
71,532
705,621
11,149
2,980,959

7,197,794
206,324
92,333
752,579
5,661
2,975,547

16,325,786
653,946
71,532
705,621
3,952
2,980,959

6,728,794
206,324
92,333
752,579
416
2,975,547

1,477,082
2,993,594
141,076,328

1,334,473
3,517,387
127,649,600

1,411,116
2,825,242
140,750,199

1,265,988
3,247,222
127,132,981

Consolidated
Parent Company
As of December 31
2010
2009
2010
2009
(Amounts in Thousands)
EQUITY ATTRIBUTABLE TO EQUITY
HOLDERS OF THE PARENT COMPANY
Capital stock (Note 26)
Additional paid-in capital (Note 26)
Surplus reserves (Note 26)
Surplus (Note 26)
Net unrealized gain (loss) on:
Financial assets at fair value through other
comprehensive income (Note 9)
Available-for-sale investments (Note 10)
Net unrealized gain (loss) on a subsidiarys:
Financial assets at fair value through other
comprehensive income (Note 9)
Available-for-sale investments (Note10)
Cumulative foreign currency translation
NON-CONTROLLING INTEREST
TOTAL EQUITY
TOTAL LIABILITIES AND EQUITY

P 4,186,314
=
3,236,905
262,829
16,890,846

20,470

=
P 4,186,314
3,236,905
251,950
10,460,495

(304,882)

=
P 4,186,314
3,236,905
252,100
16,456,021

20,470

=
P4,186,314
3,236,905
242,800
10,072,279

(304,882)

198

(724)

(46,680)
(584)
(46,680)
(584)
24,596,978
17,783,378
24,151,226
17,386,736
818,800
817,497

25,415,778
18,600,875
24,151,226
17,386,736
=
P 166,492,106 =
P 146,250,475 =
P 164,901,425 =
P 144,519,717

See accompanying Notes to Financial Statements.

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STATEMENTS OF INCOME
Consolidated

INTEREST INCOME ON
Loans and receivables (Notes 13
and 32)
Financial investments (Note 6)
Deposits with banks and others
Interbank loans receivable and
securities purchased under
resale agreements with the
Bangko Sentral ng Pilipinas
INTEREST EXPENSE ON
Deposit liabilities (Notes 18 and 32)
Subordinated notes, bills payable
and securities sold under
repurchase agreements and
other borrowings (Notes 19, 21
and 22)
Derivative instruments (Note 19)
Derivatives designated as hedges
(Note 20)

2010

2009

2009

2008

=
P 5,145,739
3,278,783
390,613

=
P5,407,941
3,618,049
435,370

=
P 4,628,449
3,626,151
538,281

=
P 4,858,141
3,276,787
370,267

=
P5,086,369
3,615,460
419,624

=
P4,261,877
3,623,452
517,875

111,173
8,926,308

31,393
9,492,753

154,873
8,947,754

111,173
8,616,368

31,393
9,152,846

154,873
8,558,077

1,601,019

2,382,560

2,563,844

1,604,506

2,390,540

2,567,859

614,375
537,417

587,330
452,381

1,038,977
312,489

597,127
537,417

567,526
452,381

997,157
312,489

73,813
2,826,624
6,099,684

67,211
3,489,482
6,003,271

605
3,915,915
5,031,839

73,813
2,812,863
5,803,505

67,211
3,477,658
5,675,188

605
3,878,110
4,679,967

4,772,458

18,849

(130,837)

4,779,391

5,907

798,596
774,046
115,634
68,990

790,313
700,098
148,275
56,790

900,219
282,023
264,105
74,298

502,012
761,618
107,825
50,964

463,366
686,985
149,223
47,883

593,818
264,555
264,026
47,910

(7)
221,084
12,850,485

25
181,577
7,899,198

124
187,087
6,608,858

172,350
12,177,665

183,674
7,212,226

123,652
5,888,584

1,733,841
715,326

1,570,063
567,325

1,435,990
500,767

1,630,213
680,528

1,447,720
529,462

1,294,518
455,490

370,206

300,402

302,261

307,080

245,409

245,615

264,163
236,134

256,580
487,440

247,475
548,132

251,019
159,198

237,950
376,589

227,897
424,932

22,915

33,207

36,181

19,611

26,464

29,122

5,390
926,612
3,795,596
3,416,630

25,776
573,579
3,276,929
2,611,655

390,705
=
P3,025,925

343,577
=
P 2,268,078

NET INTEREST INCOME

Trading and securities gain (loss)
(Notes 5 and 7)
Service charges, fees and
commissions (Note 30)
Foreign exchange gain (Note 5)
Profit from assets sold/exchanged
Rent (Notes 16, 32 and 33)
Share in net (loss) income of an
associate (Note 14)
Miscellaneous (Note 31)
TOTAL OPERATING INCOME
OPERATING EXPENSES
Compensation and fringe benefits
(Notes 29 and 32)
Taxes and licenses
Occupancy costs (Notes 16
and 33)
Depreciation and amortization
(Note 15)
Provision for credit losses (Note 13)
Amortization of software costs
(Note 17)
Provision for (recovery of)
impairment losses (Notes 10,
14, 15, 16 and 17)
Miscellaneous (Note 31)
TOTAL OPERATING EXPENSES
INCOME BEFORE INCOME TAX
PROVISION FOR INCOME TAX
(Note 28)
NET INCOME

11,157
1,603,688
4,957,430
7,893,055

24,944
1,183,134
4,423,095
3,476,103

4,047
841,196
3,916,049
2,692,809

732,154
=
P 7,160,901

414,180
=
P3,061,923

365,813
=
P 2,326,996

ATTRIBUTABLE TO:
Equity holders of the Parent
Company (Note 37)
Non-controlling interest
NET INCOME

=
P 7,159,598
1,303
=
P 7,160,901

=
P3,061,659
264
=
P3,061,923

=
P2,309,885
17,111
=
P 2,326,996

=
P 17.10

=
P8.18

=
P6.29

Basic/Diluted Earnings Per Share

(Note 37)

See accompanying Notes to Financial Statements.

34

Parent Company
Years Ended December 31
2008
2010
(Amounts in Thousands)

(12,194)
1,319,123
4,354,578
7,823,087
707,187
=
P 7,115,900

(85,344)

STATEMENTS OF COMPREHENSIVE INCOME

Consolidated

NET INCOME FOR THE YEAR

OTHER COMPREHENSIVE
INCOME (LOSS) (Note 36)
Cumulative translation adjustments
Net unrealized gain (loss) on
available-for-sale investments,
net of tax
Net unrealized gain on financial
assets at fair value through other
comprehensive income, net of
tax
Net unrealized gain (loss) on
available-for-sale investments
and financial assets at fair value
through other comprehensive
income of a subsidiary, net of tax
OTHER COMPREHENSIVE
INCOME (LOSS) FOR THE
YEAR
TOTAL COMPREHENSIVE
INCOME
ATTRIBUTABLE TO:
Equity holders of the Parent
Company
Non-controlling interest

2010

2009

=
P 7,160,901

=
P3,061,923

46,096

(209,536)

316,369

471,856

10,016

4,935

(1,040)

Parent Company
Years Ended December 31
2008
2010
(Amounts in Thousands)

2009

2008

=
P3,025,925

=
P2,268,078

=
P 2,326,996

=
P 7,115,900

162,856

46,096

(209,536)

316,369

471,856

10,016

(175)

(1,575,790)

372,481

262,320

=
P 7,488,381

=
P3,288,245

(1,738,471)

377,416

261,280

=
P 7,538,317

=
P3,323,203

=
P 751,206

=
P 7,537,014
1,303
=
P 7,538,317

=
P3,322,939
264
=
P3,323,203

=
P 734,085
17,121
=
P 751,206

162,856

(1,738,471)

(1,575,615)
=
P692,463

See accompanying Notes to Financial Statements.

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STATEMENTS OF CHANGES IN EQUITY

Capital Stock
(Note 26)

Balance at January 1, 2010, as previously reported

Effect of initial application of PFRS 9 (Note 2)
Balance at January 1, 2010, as restated
Total comprehensive income for the year
Transfer from surplus to surplus reserves
Cash dividends - =
P 2.00 per share
Balance at December 31, 2010

Additional
Paid-in Capital
(Note 26)

Surplus
(Note 26)

=
P 4,186,314

4,186,314

=
P 4,186,314

=
P 3,236,905

3,236,905

=
P 3,236,905

=
P 251,950

251,950

10,879

=
P 262,829

=
P 10,460,495
118,895
10,579,390
7,159,598
(10,879)
(837,263)
=
P 16,890,846

=
P
10,454
10,454
10,016

=
P 20,470

Balance at January 1, 2009

Total comprehensive income (loss) for the year
Issuance of common shares
Transfer from surplus to surplus reserves
Cash dividends - =
P1.75 per share
Balance at December 31, 2009

=
P3,293,457

892,857

=
P4,186,314

=
P1,688,169

1,548,736

=
P3,236,905

=
P234,900

17,050

=
P 251,950

=
P8,081,527
3,061,659

(17,050)
(665,641)
=
P10,460,495

=
P

=
P

Balance at January 1, 2008

Total comprehensive income (loss) for the year
Transfer from surplus to surplus reserves
Cash dividends - =
P 2.00 per share
Balance at December 31, 2008

=
P3,293,457

=
P3,293,457

=
P1,688,169

=
P1,688,169

=
P 228,600

6,300

=
P 234,900

6,436,634
2,309,885
(6,300)
(658,692)
=
P8,081,527

=
P

=
P

Capital Stock
(Note 26)

Additional
Paid-in Capital
(Note 26)

Surplus
Reserves
(Note 26)

Surplus
(Note 26)

Balance at January 1, 2010, as previously reported

Effect of initial application of PFRS 9 (Note 2)
Balance at January 1, 2010, as restated
Total comprehensive income for the year
Transfer from surplus to surplus reserves
Cash dividends - =
P 2.00 per share
Balance at December 31, 2010

=
P 4,186,314

4,186,314

=
P 4,186,314

=
P 3,236,905

3,236,905

=
P 3,236,905

=
P 242,800

242,800

9,300

=
P 252,100

=
P 10,072,279
114,405
10,186,684
7,115,900
(9,300)
(837,263)
=
P 16,456,021

Balance at January 1, 2009

Total comprehensive income (loss) for the year
Issuance of common shares
Transfer from surplus to surplus reserves
Cash dividends - =
P 1.75 per share
Balance at December 31, 2009

=
P3,293,457

892,857

=
P4,186,314

=
P1,688,169

1,548,736

=
P3,236,905

=
P234,900

7,900

=
P242,800

=
P7,719,895
3,025,925

(7,900)
(665,641)
=
P 10,072,279

Balance at January 1, 2008

Total comprehensive income (loss) for the year
Transfer from surplus to surplus reserves
Cash dividends - =
P2.00 per share
Balance at December 31, 2008

=
P3,293,457

=
P3,293,457

=
P1,688,169

=
P1,688,169

=
P228,600

6,300

=
P234,900

=
P6,116,809
2,268,078
(6,300)
(658,692)
=
P7,719,895

See accompanying Notes to Financial Statements.

36

Surplus
Reserves
(Note 26)

Net Unrealized Gain

on Financial Assets
at Fair Value through
Other
Comprehensive
Income
(Note 9)

Consolidated
Years Ended December 31, 2010, 2009 and 2008
Equity Attributable to Equity Holders of the Parent Company
Net Unrealized Gain
(Loss) on Financial
Net Unrealized
s Assets at Fair Value
Gain (Loss) on
Net Unrealized
through Other
Comprehensive
r
Gain (Loss) on Available-for-Sale
Income of a
Available-for-Sale Investments of a
Investments
Subsidiary
Subsidiary
(Note 9)
(Note 9)
(Note 10)
(Note 10)
(Amounts in Thousands)

Cumulative
Foreign
Currency
Translation

Total

Non-controlling
Interest

Total Equity

=
P
(4,737)
(4,737)
4,935

=
P 198

(P
=304,882)
(11,487)
(316,369)
316,369

=
P

(P
=724)
724

=
P

(P
=46,680)

(46,680)
46,096

(P
=584)

=
P 17,783,378
113,849
17,897,227
7,537,014

(837,263)
=
P 24,596,978

=
P 817,497

817,497
1,303

818,800

=
P 18,600,875
113,849
18,714,724
7,538,317

(837,263)
=
P 25,415,778

=
P

=
P

(P
=776,738)
471,856

(P
=304,882)

=
P316
(1,040)

(P
=724)

=
P162,856
(209,536)

(P
=46,680)

=
P12,684,487
3,322,939
2,441,593

(665,641)
17,783,378

=
P 817,233
264

=
P817,497

=
P13,501,720
3,323,203
2,441,593

(665,641)
=
P18,600,875

=
P

=
P

=
P961,733
(1,738,471)

(P
=776,738)

=
P501
(185)

=
P316

=
P
162,856

=
P162,856

=
P12,609,094
734,085

(658,692)
=
P12,684,487

=
P800,112
17,121

=
P 817,233

=
P13,409,206
751,206

(658,692)
=
P13,501,720

Parent Company
Years Ended December 31, 2010, 2009 and 2008
Net Unrealized
Cumulative
Gain (Loss) on
Net Unrealized Gain on Financial
Available-for-Sale
Foreign
Assets at Fair Value Through
Other Comprehensive Income
Investments
Currency
(Note 9)
(Note 10)
Translation
(Amounts in Thousands)

Total Equity

=
P
10,454
10,454
10,016

=
P 20,470

(P
=304,882)
(11,487)
(316,369)
316,369

=
P

(P
=46,680)

(46,680)
46,096

(P
=584)

=
P 17,386,736
113,372
17,500,108
7,488,381

(837,263)
=
P 24,151,226

=
P

=
P

(P
=776,738)
471,856

(P
=304,882)

=
P162,856
(209,536)

(P
=46,680)

=
P12,322,539
3,288,245
2,441,593

(665,641)
=
P17,386,736

=
P

=
P

=
P961,733
(1,738,471)

(P
=776,738)

=
P
162,856

=
P162,856

=
P12,288,768
692,463

(658,692)
=
P12,322,539

2 0 1 0

A n n u a l

R e p o r t

37

STATEMENTS OF CASH FLOWS

Consolidated

Parent Company
Years Ended December 31

2010

2009

2008

2010

2009

2008

(Amounts in Thousands)
CASH FLOWS FROM OPERATING
ACTIVITIES
Income before income tax
Adjustments for:
Provision for credit losses (Note 13)
Unrealized market valuation (gain)
loss on financial instruments at fair
value through profit or loss
(FVTPL)
Profit from assets sold/exchanged
Depreciation and amortization
(Note 15)
Amortization of software costs (Note
17)
Provision for (recovery of) impairment
losses (Notes 10, 14, 15, 16 and
17)
Amortization of transaction cost on
subordinated debt (Note 22)
Share in net loss (income) of an
associate (Note 14)
Trading and securities (gain) loss on
available-for-sale (AFS)
investments (Note 7)
Trading and securities gain on heldto-maturity (HTM) investments
(Note 7)
Changes in operating assets and
liabilities:
Decrease (increase) in the
amounts of:
Financial assets at FVTPL
Loans and receivables
Other assets
Increase (decrease) in the
amounts of:
Deposit liabilities
Financial liabilities at FVTPL
Acceptances payable
Margin deposits and cash
letters of credit
Manager's and certified
checks outstanding
Accrued interest, taxes and
other expenses
Other liabilities

=
P3,476,103

=
P2,692,809

=
P 7,823,087

=
P3,416,630

=
P2,611,655

236,134

487,440

548,132

159,198

376,589

424,932

1,377,801
(148,275)

(388,455)
(264,105)

1,124,221
(107,825)

1,359,670
(149,223)

(388,455)
(264,026)

264,163

256,580

247,475

251,019

237,950

227,897

22,915

33,207

36,181

19,611

26,464

29,122

11,157

24,944

4,047

(12,194)

5,390

25,776

5,412

4,767

5,412

4,767

1,124,221
(115,634)

(3,094,132)

(804,645)

(25)

(82,000)

(124)

43,036

(3,094,132)

(804,645)

(9,329,999)
(4,831,033)
(1,346,498)

(5,322,275)
(3,060,803)
(1,410,600)

14,851,735
(15,915,662)
239,815

2,068,336

447,622

5,212,775
(3,735,276)
97,455

8,656,311
427,412
(161,083)

(20,801)

(346,427)

(836,490)

(46,958)

206,060

142,609
(525,423)

(831,782)
(441,680)

Net cash generated from (used in)

operations
Income taxes paid

(7,899,492)
(737,262)

(4,202,011)
(414,313)

Net cash provided by (used in) operating

activities

(8,636,754)

(4,616,324)

(Forward)

38

P 7,893,055
=

(82,000)

43,036

(9,364,183)
(5,002,841)
(1,338,626)

(5,286,551)
(2,768,170)
(1,393,007)

14,810,277
(15,882,852)
247,971

2,038,446

447,622

5,201,812
(3,735,276)
97,455

8,803,348
427,412
(161,083)

(20,801)

(346,427)

(836,490)

(398,030)

(46,958)

206,060

(398,030)

125,688
263,685

145,128
(423,610)

(849,170)
(145,002)

120,958
202,091

10,172,377
(339,427)

(8,202,071)
(716,894)

(3,822,039)
(390,902)

10,043,539
(312,337)

9,832,950

(8,918,965)

(4,212,941)

9,731,202

!
Parent Company

Consolidated

Years Ended December 31

2010

2009

2008

2010

2009

2008

(Amounts in Thousands)
CASH FLOWS FROM INVESTING
ACTIVITIES
Acquisitions of:
AFS investments
HTM investments
Investment securities at amortized
cost
Property and equipment (Note 15)
Software costs (Note 17)
Proceeds from:
Sale of AFS investments
Sale/maturities of HTM investments
Liquidation of investment in an
associate
Disposal of property and equipment
Disposal of investment properties
Net cash provided by (used in) investing
activities

(P
=7,289,556)

(P
=13,857,567)
(411,128)

(P
=72,909,764)
(11,037,186)

(P
=7,253,446)

(P
=13,818,378)
(411,128)

(P
=72,915,016)
(11,037,186)

(13,288,330)
(173,917)
(25,504)

(167,924)
(30,449)

(244,033)
(30,330)

(13,288,330)
(163,425)
(20,742)

(162,920)
(29,755)

(236,316)
(26,975)

38,756,558
2,718,120

20,314,191
1,721,714

71,128,756
54,988

38,756,558
2,718,120

20,273,191
1,721,714

71,128,757
54,988

70,423
115,594

11,498
385,360

11,361
64,243
522,918

67,492
98,602

10,502
385,360

10,937
64,010
522,768

20,883,388

7,965,695

20,914,829

7,968,586

(12,439,047)

(12,434,033)

CASH FLOWS FROM FINANCING

ACTIVITIES
Proceeds from bills payable and
securities sold under repurchase
agreements
1,426,847,203 2,328,432,668 2,036,041,254 1,422,479,201
2,327,963,668 2,036,027,828
Settlements of bills payable and
securities sold under repurchase
agreements
(1,417,368,211) (2,326,186,762) (2,036,759,793) (1,412,882,209) (2,326,186,762) (2,036,759,793)
Proceeds from issuance of common
shares (Note 26)

2,441,593

2,441,593

Proceeds from issuance of subordinated

notes (Note 22)

2,970,780

2,970,780
Dividends paid
(835,635)
(664,070)
(656,396)
(835,635)
(664,070)
(656,396)
4,023,429

Net cash provided by financing activities

8,643,357

Effect of exchange rate changes in cash

and cash equivalents

46,095

NET INCREASE (DECREASE) IN CASH

AND CASH EQUIVALENTS

20,936,086

7,163,264

2,388,608
12,062,184
5,261,789

2,288,825
11,677,975
2,691,517

CASH AND CASH EQUIVALENTS AT

BEGINNING OF YEAR
Cash and other cash items
Due from Bangko Sentral ng Pilipinas
Due from other banks
Interbank loans receivable and securities
purchased under resale agreements
with the Bangko Sentral ng Pilipinas
CASH AND CASH EQUIVALENTS AT
END OF YEAR
Cash and other cash items
Due from Bangko Sentral ng Pilipinas
Due from other banks
Interbank loans receivable and securities
purchased under resale agreements
with the Bangko Sentral ng Pilipinas

(209,536)

1,595,845

8,761,357

162,856

46,095

(847,396)

1,988,137
12,249,938
3,269,558

3,554,429
(209,536)

20,803,316

7,100,538

2,388,400
12,062,184
4,852,895

2,288,605
11,677,975
2,345,361

1,582,419
162,856
(957,556)

1,987,915
12,249,938
3,033,564

8,407,000

4,298,000

4,296,080

8,407,000

4,298,000

4,296,080

28,119,581

20,956,317

21,803,713

27,710,479

20,609,941

21,567,497

2,420,849
29,111,752
16,596,266

2,388,608
12,062,184
5,261,789

2,288,825
11,677,975
2,691,517

2,420,642
29,111,752
16,054,601

2,388,400
12,062,184
4,852,895

2,288,605
11,677,975
2,345,361

926,800

8,407,000

4,298,000

926,800

8,407,000

4,298,000

P 49,055,667
=

=
P28,119,581

=
P20,956,317

=
P 48,513,795

=
P27,710,479

=
P20,609,941

(Forward)

2 0 1 0

A n n u a l

R e p o r t

39

STATEMENTS OF CASH FLOWS

Consolidated

Parent Company
Years Ended December 31

2010

2009

2008

2010

2009

2008

(Amounts in Thousands)
OPERATIONAL CASH FLOWS FROM
INTEREST AND DIVIDENDS
Interest received
Interest paid
Dividends received

P 9,490,596
=
(2,818,715)
5,137

See accompanying Notes to Financial Statements.

40

=
P9,768,734
(4,156,945)
1,662

=
P9,623,089
(4,770,957)
2,067

=
P 9,180,244
(2,803,947)
79,052

=
P9,429,424
(4,143,709)
675

=
P9,233,657
(4,737,844)
855