A L L

2011
T H E WAY TO THE
a n n u a l r e p o r t

TOP

Tab le o f C on tents
1 2 4 5 6 8 11 16 18 20 21 23 Foreword Awards and Distinctions Investment Merits Financial Highlights Letter from the Chairman Report of the President and Chief Executive Officer Operational Highlights Board of Directors Board of Directors Profiles Executive Committee Corporate Governance Risk Management 25 26 29 30 32 34 36 Report of the Audit Committee Senior Management Management Directory Products and Services Subsidiaries Corporate Social Responsibility Statement of Managements Responsibility for Financial Statements Independent Auditors Report Financial Statements Branch Directory Investor Assistance

37 38 45 52

all the way to the top

The Cover features the building blocks of Security Banks success which are founded on Teamwork, Innovation and Business Expansion. These are the core foundations of a culture which enables the Bank to deliver Superior Customer Service through Customized Products and Solutions while emphasizing Security Banks pre-eminence as the Philippine banking industrys benchmark for delivering the best Shareholder Value. This is a testament to how Security Bank constantly stretches its limits, in its pursuit of excellence, as it continues on its journey All the Way to the Top.

A L L

T H E

WAY

TO

THE

TOP

TO BE A world class bank that is the best of the best A lifetime partner in fulfilling dreams, Across generations, Beyond borders.

A L L

T H E

WAY

TO

THE

TOP

L IS T O F AWA R DS A ND D IS T I NC T I O Ns

The Asian Banker 500

Number 1 among 500 banks in Asia Pacific in terms of Return on Assets Ranked number 5 in terms of Return on Equity The Philippines 3rd strongest Bank and 28th ranked in the region

The World Finance Banking Award Corporate Governance Asia Annual Recognition Awards 2011

Best Banking Group in the Philippines for 2011

Among the Best of Asias publicly listed companies in the region

Asiamoney Best Bank Awards Asian Banking and Finance Retail Banking Award 2011

Best Domestic Debt House in 2011

Best Online Banking Initiative in the Philippines and across Asia for product innovation for DigiBanker Billing/Invoice Presentment and Payment System

Financial Insights Innovation Awards (FIIA) DigiBanker Inter-Bank Fund Transfer (IBFT) Facility Top Key Initiatives in Asia Pacific Philippine Dealing System (PDS) Cesar E.A. Virata Award
Top Rank in Four Categories: Top Fixed-Income Cash Settlement Bank 2011 Top Fixed-Income Brokering Participant 2011 Top 5 Spot Foreign Exchange Dealer 2011 (ranking 3rd) Top 5 Fixed-Income Dealing Participant 2011 (ranking 3rd)

Best Securities House for seventh consecutive year

Bureau of Treasury

Best Performing Government Securities Eligible Dealer for 6 consecutive years

Bangko Sentral ng Pilipinas Stakeholders Award 2011

Special Recognition for Advocacy Support for participation in BSPs financial learning campaign
Source: The Asian Banker, Strategic Business Intelligence for the Financial Services Community: The Asian Banker 500 is an annual study of the financial & business performance of the commercial banking industry in the Asia Pacific Region.

IN VES TMENT MERITs

25% 3.5% 18.2% 0.9% 315%

4

- Consistently highest in industry for the past 5 years

RETURN ON ASSETS

- Ranked No. 1 among Philippine universal banks

CORE CAPITAL RATIO

- Capitalized well above industry average and regulatory requirements

ASSET UALITY

- Lowest NPL ratio in industry - Highest coverage ratio, double of industry average

A L L

T H E

WAY

TO

THE

TOP

FI N A NCIAL HIGHLIGH T S
2011 2010 FOR THE YEAR (in Million Pesos) Net Interest Income 7,537 6,100 Other Income 4,121 6,751 Operating Expenses 4,149 4,721 Provision for Credit Losses 59 236 Net Income 6,701 7,160 AT YEAR-END (in Million Pesos) Total Assets 215,255 166,492 Total Earning Assets 207,514 157,506 Loan Portfolio (net) 91,964 74,505 Total Deposits 119,306 110,593 Capital Funds 30,433 24,597 PER COMMON SHARE Earnings per Share (Weighted / Adjusted) P13.34 P14.25 Number of Shares Outstanding /Subscribed (in Millions) 502 418 FINANCIAL RATIOS (%) Return on Average Assets 3.48% 4.91% Return on Average Equity 24.64% 34.62% Non-Performing Loans Ratio 0.86% 1.12% 2009 6,003 1,896 3,936 487 3,062

146,250 138,564 69,900 108,525 17,783

P6.82 418

2.19% 20.92% 1.27%

Total Assets

(in Billion Pesos) 11 10 09 146 166 215

Total Earning Assets

(in Billion Pesos) 11 10 09 139 158 208

Total Deposits
(in Billion Pesos) 11 10 09 111 109 119

Loan Portfolio (Net)

(in Billion Pesos) 11 10 09 70 75 92

Capital Funds
(in Billion Pesos) 11 10 09 18 25 30

Net Income

(in Million Pesos) 11 10 09 3,062 6,701 7,160

Our market

capitalization at over Php 50 billion

(over USD 1.2 billion) represents

250% growth

over the last 5 years.

A L L

T H E

WAY

TO

THE

TOP

LETTER FROM THE CH A I R M AN

As 2011 unfolded, the global economy was facing the raging debt crisis in Europe, the continued sluggish US economy and steadily climbing crude oil prices while the domestic economy was trying to balance a strong consumption-led growth and weak government spending. The Bangko Sentral ng Pilipinas skillfully managed to deliver a stable monetary and price environment in an uncertain global economy. Impressively, domestic credit growth supported a robust service sector with continued foreign direct investments in manufacturing, energy and property sectors, while the Philippine equity market ranked as one of the best performing in the region. It was against these business conditions that Security Bank sustained its performance excellence. At year-end, the total resources of your Bank reached Php 215 billion. Net income at Php 6.7 billion, represented a return on average equity of 25%. Capital funds of Php 30 billion translated to a healthy capital adequacy ratio of 20%, way in excess of regulatory requirements, and strongly positioned your Bank for further growth. Asset quality remained superior with non-performing loans ratio of less than 1%, with reserve cover of 315%. While continuing to build a sustainable franchise, your Bank executed key strategic moves in 2011 to deliver long-term financial performance. Security Bank acquired Premiere Development Bank with its network of 38 branches. Regulatory approvals for the acquisition were obtained in January 2012 paving the way for the completion of the share purchase agreements. Together with the approval from the Bangko Sentral ng Pilipinas for 50 branch licenses in restricted areas, your Banks network of branches is projected to grow to 250 by mid-2014. Along this thrust for expansion, your Bank likewise executed a joint venture agreement with Marubeni Corporation of Japan for the establishment of SBM Leasing. This will be Marubenis second leasing operation in the region after its success in the establishment of a leasing business in Indonesia. To support our expansion objectives with a long-term funding base, we likewise obtained regulatory approvals for the issuance of Php 10 billion long-term negotiable certificates of deposits (LTNCD), with the first tranche of Php 5 billion issued in February 2012. Security Bank takes pride in its recognition from The Asian Banker, The World Finance Banking Award, and the Corporate Governance Asia Recognition Awards. Security Bank has proven its excellence not only among Philippine banks, but is now a recognized name in the Asian banking stage. The awards are a fitting tribute to Security Bank on its 60th year. Security Bank has proven that a bank does not need to be the biggest to be the best. Over the last five years, Security Bank has exceeded the expectations of our clients and our other stakeholders. Our market capitalization at over Php 50 billion (over USD 1.2 billion) represents 250% growth over a period FREDERICK Y. DY Chairman of five years. We continued with our Php 2.00 cash dividend payment in 2011, our 20th consecutive cash dividend and a ten-fold growth from our initial cash dividend payment of Php 0.20 per share. On our 60th year, with funding provided by the Security Bank Foundation, Inc., our corporate social responsibility arm, we were deeply involved in giving back to the community as part of our advocacy for education and livelihood development, as well as support for environmental programs. The Foundation committed to fund the construction of 60 classrooms for public schools over a five-year period, and we piloted the project in 2011 with the turnover of 13 classrooms for two public elementary schools and one public high school in Cabiao, Nueva Ecija. The Foundation likewise supported the flood victims of Davao, Cagayan de Oro, Iligan and Dumaguete with cash donations used for the rebuilding of homes and schools. Faced with shareholder expectations of sustaining your Banks unprecedented levels in return on equity and investment, your Bank will focus on its defined building blocks for continued success and leadership in shareholder value. We look forward to sustaining our solid growth and profitability in the coming years with the expanded branch network, the contribution of new businesses, and continued investments in people, infrastructure, products and services. We are committed to position Security Bank among the leading established financial institutions recognized and respected by both local and international peers as one of the best in Asia. Security Bank will continue to be a vital partner across generations, expanding our products and services beyond both physical and socio-economic borders, as we commit to lifetime partnerships to help fulfill every Filipinos dreams. We are most grateful for the loyalty and continued support of our customers and business partners over the last 60 years. We acknowledge the prudent risk management and governance of the members of the Board. We take pride and deeply appreciate the efforts of our Security Bankers who have responded to the challenge of working together to bring Security Bank to ever higher competitive levels. Most importantly, we are thankful for the blessings received over the past 60 years from the Lord Almighty.

We continued with our Php 2.00 cash dividend payment in 2011, our 20th consecutive cash dividend and a ten-fold growth from our initial cash dividend payment of Php 0.20 per share.
7

the challenges of excellence, innovation, growth and expansion.

Our building blocks for success are in place to sustain our position of leadership in the delivery of shareholder value in the coming years.

Our 2011 results reflect your Banks efforts to surpass

A L L

T H E

WAY

TO

THE

TOP

R eport o f the pres ident an d chief ex ec u tive o f f icer

It is clear that 2011 will be remembered for the external economic events that posed a threat to the global economy and yet the Philippine economy remained resilient. Despite surging crude oil prices due to Middle East tensions, the economy managed to carve a 3.7% growth supported by strong economic fundamentals and a healthy stock of buffers like overseas remittances and Business Process Outsourcing (BPO) revenues to withstand external shocks. The growth was on the foundation of robust household spending, continued gross investments and a flourishing service sector that was unaffected by the global slowdown that afflicted larger economies. Security Bank faced the challenge of delivering another year of record financial performance amidst the global uncertainties and local competition. We succeeded in exceeding the expectations of our various stakeholders with the following financial highlights: Net income of Php 6.7 billion, translating to an industry-high Return on Average Equity (ROE) of 25% Net interest margins at Php 7.5 billion, representing a strong 24% improvement from 2010, driven by volume growth in the loan portfolio and investment securities, while net interest margins were still kept at above 4%. Core revenues, net of the one-time trading and disposal gains, reflecting a strong 21% improvement from 2010, supported by the Php 1.5 billion improvement in net interest margins and growth in other income, particularly from customer foreign exchange, advisory and stockbrokerage fees. Cost to income ratio, sustained at 37%, with strong revenues accompanying a decline in operating expenses due to lower pension expenses, zero provision for credit losses, the reversal on impairment on investment properties held by an affiliate and various savings realized on cost efficiency projects. Total resources reached an all-time high of Php 215 billion, a 30% increase from 2010. Net loans at Php 92 billion, representing a strong 23% improvement coming from expansion in the corporate loan portfolio, particularly for the mining, power, real estate and trading industries.

Asset quality continues to be best of industry, with absolute nonperforming loans at Php 800 million, translating to an NPL ratio of .9%. The allowance for credit losses amounted to Php 2.6 billion at year-end, resulting in more than adequate coverage of nonperforming loans at 3.2 times. Deposits delivered by our network of 136 branches, 209 automated teller machines and various electronic channels amounted to Php 119 billion at year-end. At the year-end stock price of Php 97.45 per share, SECB shares are trading at 1.6 times book value and a price-earnings multiple of 7.3 times.

Php6.7 Billion Net Income

Industry-high Return on Average Equity

25% (ROE)

Total Resources reached an all-time high, a 30% increase from 2010

Php215 Billion

with the passion to constantly raise the level of performance.

10

Our 2011 performance is a result of the combined efforts of all Security Bankers, working as

one team,

A L L

T H E

WAY

TO

THE

TOP

OPE R AT I ON A L H I G H L I ghT S
The Challenge for Excellence
The impressive display of Security Banks strength came at a time of challenges in the local and global economies. Our 2011 performance was a result of the combined efforts of all Security Bankers, working as one team, with the passion to constantly raise the level of performance. In 2011, the Bank piloted its Accelerated Leadership Development Program which aims to prepare identified participants to assume bigger roles through formal mentoring and individual development plans. A number of program participants have seamlessly assumed division leadership roles as part of succession planning efforts. Training programs related to risk management, leadership and customer service were the key thrusts of the organization. Various accreditation modules, product and process programs focused on the risk implications in the work environment. In addition to professional development activities, as part of our talent retention thrusts, employee benefits were regularly reviewed for enhancements. Our Corporate Human Resources Group initiated events that promoted employee engagement, covering sports, essay writing contests, eco- waste management programs, in addition to work-life balance workshops, character-building programs, and employee volunteerism projects, including support for the Security Bank Foundation projects and participation in a blood-letting campaign in partnership with various hospitals. Training was not limited to members of the Security Bank family, but was extended to benefit customers and the general banking public. The Bank-organized, twice-a-year Philippine Economic Forum had become a much-anticipated customer event. The Treasury Group actively participated in a nationwide financial literacy campaign via seminars on market trends, derivative products and strategies. This was part of our commitment to propel the domestic derivatives market, zeroing in on the prudent use of derivatives to manage and mitigate foreign exchange and interest rate risks. This initiative earned for the Bank a Special Recognition for Advocacy Support from the Bangko Sentral ng Pilipinas. Towards cultivating a culture of Service Excellence, the Service Quality Circle was formed to ensure the adoption and implementation of the quick-win recommendations of the Senior Management Team from its Service Quality Workshop in 2010, as well as to develop the roadmap over the medium term to achieve a bank-wide service quality culture. The achievement of business growth via organizational efficiency and service was addressed via the launch in branches of the BEST Program, an acronym standing for

Be Well-Informed and Efficient/Error-Free, Serve with a Smile, and in a Timely manner

The Challenge for Growth and Expansion

With the objective of growing the balance sheet and generating sustained revenues from its core businesses, Security Bank focused on building its customer base, strengthening its distribution capability with additional branches and ATMs, launching new products, and opening new business initiatives that contributed additional revenue streams. In terms of reach, Security Banks nationwide network of branches totaled 136 by end of 2011, with 209 Automated Teller Machines and complemented by the Bancnet countrywide system. New branches were opened during the year in the high potential markets of Molino, Cavite; Dumaguete City; Ormoc, Leyte; Butuan City; Sta. Maria, Bulacan; Alicia, Isabela, with a relocated branch in Batino, Laguna. The distribution channels were supported by sales officers deployed for the feet on the street strategy to increase new customer base, improve cross-selling activities and maximize product to customer ratio. Sales efforts were supported with the 2011 Sellebration Incentive Program to help build the portfolio of low cost deposit funds.

Security Bank family numbers 2,500.

Talent sourcing and management are key priorities towards employee

development and retention

11

Opening new branches to build customer base, strengthen distribution capability and expand markets.

To better service commercial loan segments, a geographical hub was set up in Tacloban in addition to existing hubs in the Visayas Area covering Cebu and Bacolod, and for the Mindanao Area, covering Davao, Cagayan de Oro, General Santos and Zamboanga. New hubs were also programmed for establishment in 2012 for Dumaguete, Ormoc, Lucena, Batangas and Bicol. In line with the BSPs liberalization thrust to open branches in declared restricted areas, the Bank was granted approval for 50 new restricted branch licenses under BSP Circular 728, with an investment of P20 million per branch license. Additional branches in the cities of Manila, Quezon City, Makati, Mandaluyong, Paranaque, Pasay, Pasig and San Juan will be opened on a staggered basis up to June 2014. In a strategic move, your Board approved the acquisition of Premiere Development Bank during the year with its network of 38 branches, with 21 located in Metro Manila, and 17 branches in the provinces of Cavite, Laguna, Bulacan, Rizal and Batangas. The acquisition will also enable Security Bank to become more competitive in the consumer, small and mid-sized market. The BSPs approval for the acquisition was obtained in January 2012, with closing for the acquisition of shares from the Premieres shareholders completed on February 1, 2012. Premiere Bank will be operated as a subsidiary savings bank to be renamed as Security Bank Savings. Integration activities covering the Banks loan and deposit operations are planned for implementation in 2012.

Expansion also came in the form of a new leasing business. During the year, SBM Leasing Inc. (formerly Security Finance, Inc.) was established as a joint venture arrangement with the Marubeni Corporation of Japan, one of Japans biggest conglomerates involved in a broad range of sectors, including power generation, infrastructure development, and industrial machinery, among others. Security Bank owns 60% of the new leasing company, with Marubeni having 40% ownership. SBM Leasing will focus on heavy equipment financial leases covering the construction, mining and public transport industries. In the future, it may move towards leasing of hospital equipment, printing, shipping and aviation, manufacturing and agri-related industries. Our investment bank, SB Capital Investment Corp., holds the distinction of underwriting two of the largest equity issues in the history of the Philippines, making it one of the top underwriters of equity for 2011. SB Capital was the joint lead underwriter and joint issue manager for the Php 15 billion San Miguel Purefoods Perpetual Preferred share issue, the largest of its class in share issue in the country. The deal was followed by the Php 16 billion SMC Secondary offering with SB Capital as domestic joint bookrunner for the transaction. SB Capital likewise acted as the joint deal manager for the Php 323.5 billion ROP Debt Exchange.

Premiere Bank will be operated as a savings bank subsidiary which will be renamed

Security Bank Savings.

12

A L L

T H E

WAY

TO

THE

TOP

In 2011, we granted a 20-year loan financing to the Water and Waste Water Plan of Boracay Island Water Company, a subsidiary of Manila Water Company. Through the Philippine Water Revolving Fund, the Bank was able to co-finance the loan in partnership with the Development Bank of the Philippines and the Japan International Cooperation Agency (JICA). Treasury focused on the delivery of its accrual income commitment with portfolio growth as projected in the 2011 plan. Despite contraction in spreads, trading turnover improved from developing market coverage. New accounts were tapped dealing in traditional treasury products and financial derivatives. With the expertise of the treasury marketing team, customers were presented with customized financial solutions consistent with their financial objectives and within their acceptable tolerance of risks. Other income, net of securities trading gains, supported the net margin growth with its 11% improvement from prior year. The increase in service charges, fees and commissions resulting from the increase in customer base and fees earned from capital market deals softened the impact of lower trading gains. Account relationships were not only managed in terms of loans and deposits, but also by developing custom fit cash management solutions in teamwork with the Transaction Banking Group and through the establishment of derivative and capital market solutions in partnership with the Treasury Group and SB Capital. Volumes distributed by the Fixed Income Securities Division (FISD) showed marked growth from active participation in the primary offers market especially for non-government Peso and US Dollar bond sales. This was supported as well by expanding the onshore and offshore

institutional client market for the distribution of papers from the underwriting deals of SB Capital, and from contribution of Treasury Specialists assigned outside of the Metro Manila area in designated provincial regions.

The Challenge for Innovation

Security Bank takes pride in its employment of the smart use of technology to be at par, if not better than competitor banks in terms of product innovation and development. The Digibanker PAS5 ePayment system is the first online Custom Duties and Taxes (CDT) module with the capability to effect real time confirmation and approval for every CDT transaction prior to final payment processing of the Bank. Security Bank is also the first domestic bank to operate a fully customized, internet based Electronic Invoice Presentment and Payment System (known as BIPPS) that won the Asian Banking and Retail Banking Awards for the Philippines and the Bronze Award for the Asia Pacific.

Strong customer relationships sealed our partnership for some of the most successful deals of the year.

Security Bank owns 60%

of the new leasing company, with Marubeni having a 40% ownership.

13

DigiBanker provides customized business solutions using iPad applications for fast payment approvals, as well as to reconcile, track and view transaction details in real-time.

14

A L L

T H E

WAY

TO

THE

TOP

For the retail market, enhancements for the Security Bank online facility include the increase in bills payment merchants, the introduction of a virtual keyboard and additional credit functionalities including electronic statement of accounts, online statement viewing, credit card transaction history, and an enhancement that allows payroll account holders to open accounts. The MasterCard CheckSure provides checking accountholders fast and convenient access to their available credit card cash advance limit to fund their checking account. The transaction is seamless with its preauthorized, automatic charging feature ensuring unparalleled customer convenience. CheckSure works by linking a clients pre-enrolled current account to his SB MasterCard credit card, enabling the client to draw against the credit cards available cash advance limit. Meanwhile, electronic cash cards and gift cards were actively promoted to new markets that the previous monthly average for new cards generated has grown by 50%. The value of this creative electronic banking product became even more evident and proved to be life-saving during recent typhoons, when access to cash was an immediate need of affected communities with operations of most banks and ATMs disrupted for days due to flooding. Communities in Iligan City discovered that they can make withdrawals immediately from funds sent by relatives through selected Security Bank ATMs even without an ATM card. Innovation will continue to be the thrust as variants for new usage, new markets and alternative fulfillment points are explored. Opportunities for expanding corporate relationships with financial institutions and government will be pursued. New products targeted towards specific financing requirements for distributors and dealers, growers, and other parties in the supply chain are likewise being developed. 2011 marked the Banks celebration of our 60th year through a series of anniversary events for customers, partners and employees. We hosted Decades: A Musical Concert of Broadway Showtunes in Manila, Cebu and Davao for our valued clients and business partners. We also sponsored an exclusive movie screening of Pirates of the Caribbean:

On Stranger Tides on its world premiere to show our appreciation to our customers and partners from the business sector, the financial community, and government for 60 years of lasting relationships. As a tribute to our various stakeholders on our sixth decade, we distributed a set of special 60th Anniversary Commemorative Stamps and First Day Cover Envelope. Its design depicted the first Security Bank main office at the Plaza Goiti in Manila in 1951 side by side the current corporate headquarters in Makati, as well as the evolution of the corporate logo over the past six decades developing into a stable and trusted brand. As part of the anniversary celebration, we hosted a Run for Fun marathon with 5K, 10K, 15K and one-mile events for the members of the Security Bank family and selected clients. As part of being responsible corporate citizens, we sponsored an exhibit at the Ateneo Art Gallery to support Filipino artists and promote awareness of modern Philippine culture and continued our support to the Filipino Heritage Festival for the preservation of our intangible cultural heritage. We likewise joined hands with Ateneo for the Build a School, Build a Nation: The 60 Classrooms Project which reinforced our Banks 60th anniversary theme of Lasting Relationships in the communities that we serve through our commitment of socio-economic development and poverty alleviation through education. Our 2011 results reflect your Banks efforts to surpass the challenges of excellence, innovation, growth and expansion. Our building blocks for success are in place to sustain our position of leadership in the delivery of shareholder value in the coming years. As we continually raise the bar each year, we acknowledge the contribution of all Security Bankers and the guidance of the Board of Directors. To our customers and business partners, we are thankful for your continued patronage and we express our commitment to value creation in the years ahead.

ALBERTO S. VILLAROSA President and Chief Executive Officer

50% growth
in new cards generated
15

b oard of director s

16

A L L

T H E

WAY

TO

THE

TOP

1. FREDERICK Y. DY Chairman 2. ALBERTO S. VILLAROSA President & Chief Executive Officer 3. PHILIP T. ANG Independent Director 4. ANASTASIA Y. DY Executive Director 5. PAUL Y. UNG Vice Chairman 6. JAMES J.K. HUNG Independent Director

7. RAFAEL F. SIMPAO JR. Director 8. DIANA P. AGUILAR Director 9. JOEL RAYMOND R. AYSON Corporate Secretary 10. JOSE R. FACUNDO Director 11. JOSE PERPETUO M. LOTILLA Independent Director 12. EDUARDO I. PLANA Director

4 5 1

6 7 8

9 10

11

12 3 2 3

17

b oard of director s prof iles

Mr. Frederick Y. Dy

was elected Vice Chairman of the Board on April 4, 1989 before assuming the Chairmans position on April 30, 1991. He is also a member of the Banks Executive Committee. He is likewise the Chairman of St. Lukes Medical Center (since August 2011), Chairman of City Industrial Corporation (since June 1994), Independent Director of Nickel Asia Corporation (since September 2010) and a Director of Ponderosa Leather Goods Co., Inc. (since May 1980).

Ms. Diana P. Aguilar

Mr. Paul Y. Ung

was elected Vice Chairman of the Board on September 29, 1998. He is also the Chairman of the Risk Management Committee and a member of the Corporate Governance, Executive and Trust Committees. He is likewise an Independent Director of Cityland, Inc. (since 2008). He was a Chairman of Century Chemical Corp. (from 1989 to 2005), and Em-Pol Corporation (from 1989 to 2005) and a Director of SB Cards Corporation (from 2003 to 2007). He was President and General Manager of Pacific Paint & Oil Manufacturing, Inc. (from 1967 to 2002), JWL Chemical Corporation (from 1988 to 2005) and Pacific Land (1989 to 2005), He was a Vice President of Atlantic Coatings (from 1989 to 2005) and a Secretary of Road Leader (from 1990 to 2005). He graduated from the University of the Philippines with a Bachelor of Science Degree in Chemistry.

was elected to the Board on November 3, 2010. She is a member of the Banks Audit and Corporate Governance Committees. She was appointed as a Commissioner of the Social Security System in August 2010. She is also a member of the Board of Directors of the Phoenix Petroleum Philippines, Inc. (since 2010), Phil. Seven Corporation (since 1999), Phil. Seven Holdings Corp. (since 1999), Gate Distribution Enterprise, Inc. (since 1997) and DAJ Property Holdings Corp. (since 1996). She is also a Director and Treasurer of Foundation for International Research Skills and Training, Inc. (since 2007), Electronic Commerce Payment Networks, Inc. (since 2004), Wenphil Corporation (since 1998) and Asian Holdings Corp. (since 1994). She was elected as Director of Coastal Road Corp. (from 1999 to 2002), CLSA Exchange Capital Corp. (from 1998 to 2001), Heritage Park Memorial Corp. (from 1998 to 2001), ERA Phils., Inc. (from 1998 to 2005) and Artemis Electronic Systems Inc (from 2004 to 2006). She was a Director and Treasurer in Land & Housing Development Corp. (from 1998 to 2002), Franchise One Corporation, (from 2002 to 2006), Cable Entertainment Corp. (from 1998 to 2006) and Southwest Towers, Inc. (from 1988 to 1998). She has a Masters Degree in Business Administration major in International Business from Pepperdine University and holds an undergraduate degree in Computer Science from De La Salle University.

Mr. Alberto S. Villarosa

Ms. Anastasia Y. Dy

Mr. Alberto S. Villarosa was elected President and Chief Executive Officer of the Bank on January 5, 2004. Prior to this, he was Senior Executive Vice President and Chief Operating Officer (from 2002 to 2003). He is currently the Chairman of the Banks Assets and Liabilities, Credit, Management, Personnel, and Technology Steering Committees and a member of the Executive, Trust, Restructuring and Risk Management Committees. He is also the Chairman of SB Capital Investment Corporation (since April 2004), SBM Leasing, Inc. (since 2011), Premiere Development Bank (since February 2012) and Philippine Dealing System (since April 2012); a Trustee of Security Bank Foundation, Inc. (since August 2003) and SBC Retirement Plan (since September 2003); and a member of the Society of Fellows of the Institute of Corporate Directors (since July 2006). He is also a Director of Catholic Travel Inc. (since 2008) and President and Director of the Bankers Association of the Philippines (since April 2012). Mr. Villarosa has extensive banking experience in the areas of Treasury, Investment Banking and Consumer Banking. Prior to joining the Bank, he was the Executive Vice President and Treasurer of Bank of the Philippine Islands (BPI) (from October 1996 to October 2002). During that time, he was also a Director in several BPI subsidiaries, among which were BPI Family Bank, BPI Forex Corporation and BPI Investment Management, Inc. Prior to joining BPI, he was Director/President in CityTrust Securities Corp. (from 1998 to 2003) and with CityTrust Banking Corporation (from 1987 to 1996) where the last position he held was Executive Vice President/Treasurer and President of CityTrust Investment Philippines. Prior to this, he was a Vice President of Citibank N.A. (from 1984 to 1987). He graduated from the Asian Institute of Management with a Masters Degree in Business Management.

is the Banks Executive Director, appointed on September 1994. She was the Banks Corporate Treasurer (from 1994 to September 2004). She is a member of the Risk Management, Technology Steering, Management and Personnel Committees and alternate member of the Executive Committee. She is a Director of Woodchild Holdings (since 1991), Woodson Holdings (since 1991), Ponderosa Leather Goods, Co., Inc. (since 1995) and Eastway Travel Goods (since (1993). She is also the Chairman/ President of Tany Foundation Inc. (since January 2007) and a Trustee and President of Security Bank Foundation, Inc. (since 2001), a Trustee/ Assistant Corp. Secretary of New Tribes Church Planters of the Phils. (since 2004) and a Trustee/Treasurer of Percept Ministries International of the Phil. Islands (since 2005). She graduated from the University of the Philippines with a Degree in Business Administration and earned units for Masters Degree in Business Administration from De La Salle University.

Mr. Jose R. Facundo

was elected to the Board on March 2001. He is also the Chairman of the Banks Trust Committee and a member of the Risk Management Committee. He is likewise a member of the Board of Directors of Aboitiz Power Corporation (since 2008), Siemens Philippines Inc. (since 2003) and Alaska Milk Corporation (since 1996). Prior to joining the Bank, he was the Senior Managing Director of Ayala Corporation (from 1996 to 1999); a Director of Temic Philippines, Inc. (from 1980 to 2002); the President/CEO of CityTrust Banking Corporation for more than twenty (20) years until its merger with Bank of the Philippine Islands; a Director and a member of the Executive Committee of the Bank of the Philippine Islands (from 1996 to 1999); the President of BPI Capital Corporation (from 1996 to 1999); a Trustee of the Junior Achievement of the Philippines (from 1976 to 2006); and a Consultant to Siemens Philippines, Inc. (from 2000 to October 2001). He graduated

18

A L L

T H E

WAY

TO

THE

TOP

from the Ateneo de Manila University with a degree of Bachelor of Arts in Engineering and took post graduate studies in Statistics from the University of the Philippines, and in Engineering at the Technical University of Munich.

I n dependent Directors
Mr. Philip T. Ang

Mr. Eduardo I. Plana

was elected to the Board on May 1999. He is a member of the Banks Audit and Restructuring Committees. He was a former Director/ Compliance Officer of the Bank (from May 1999 to May 31, 2004), and Executive Vice President (from July 1993 to August 1998) when he retired. He is currently a Director of The Real Bank (A Thrift Bank), Inc. (since March 2005) and of Banko Sual (A Rural Bank), Inc. (since April 12, 2007). He is also a member of the Advisory Board of San Bartolome Rural Bank, Inc. of Magalang, Pampanga (since July 2010) and serves as Consultant to Rural Bank of Oroqueta in Misamis Occidental (since June 2011). Prior to joining the Bank, he was with the Metrobank Group (from 1974 to 1990) where the last position he held was Senior Vice President/Controller of First Metro Investment Corporation. Prior to this, he was with the BSP as Supervising Bank Examiner (from 1964 to 1973). He is a Certified Public Accountant and graduated from the University of the East with a degree in Business Administration.

was elected to the Board on February 21, 1980. He is the Chairman of the Corporate Governance Committee and member of the Banks Executive and Audit Committees. He is also the Chairman and Director of Hinatuan Mining Corporation and Cagdianao Mining Corporation (since September 29, 2008); Vice Chairman and Director of Nickel Asia Corporation (since February 2007) and Taganito Mining Corporation (since May 2005). He is likewise the Independent Director of SB Capital Investment Corporation (since February 2010), SBM Leasing, Inc. (since May 2010). He was the Chairman and President of Solid Mills, Inc. until his retirement in late 2002. He graduated from the Oregon University with a degree in Business Administration and a Masters Degree in Business Administration from University of Denver.

Mr. James J. K. Hung

Mr. Rafael F. Simpao Jr.

was the President of the Bank from October 31, 1995 to January 4, 2004. He is currently the Chairman of the Banks Executive and Restructuring Committees, and a member of the Risk Management Committee. He is also the Chairman of Security Bank Foundation, Inc. (since 1997) and Security Land Corporation (since 2011); a Director of SB Capital Investment Corporation (since 1995); a Trustee and Treasurer of International Graduate School of Leadership (since 1994); a Trustee and Treasurer of New Tribes Church Planters of the Philippines (since 2004); and a Trustee of Tany Foundation, Inc. (since January 2007). He was a former Director of the Bankers Association of the Philippines (from 2002 to 2004), a Director and Treasurer of LGU Guaranty Corporation (from 2000 to 2005) and a Trustee and Treasurer of Christs Commission Fellowship (from August 2006 to January 2009). He graduated from the Ateneo de Manila University with a Bachelor of Science degree in Economics and is a candidate for a Masters Degree in Business Administration from De La Salle University.

was elected to the Board on April 24, 1990. He is a member of the Banks Corporate Governance and Trust Committees. He is also the Chairman of Asia Securities Global Group (Hong Kong, since 1993) and Xingya Real Estate Development Co, (China, since 1993) and a Director of Franklin Templeton Investment Fund (Luxembourg, since 2001). He was a Director in Templeton Emerging Markets Trust Placements (from 1989 to 1999) and Taiwan Index Fund Limited (from 1991 to 2003) He graduated from Babson College with a Masters degree in Business Administration major in Finance.

Mr. Jose Perpetuo M. Lotilla

was elected to the Board on May 28, 2002. He is the Chairman of the Banks Audit Committee and a member of the Corporate Governance Committee. He is a Senior Partner at Sycip, Salazar, Hernandez & Gatmaitan Law Offices. He became a partner in the firms Corporate, Special Projects and Banking, Finance and Securities Practice Groups in 1989. He is also an Independent Director of SB Capital Investment Corporation (since April 2004) and SBM Leasing, Inc. (since May 2010); a Director of Ericsson Telecommunications, Inc. (since August 1988), Ericsson Services, Phils. Inc. (since August 2000), Summit Rural Bank of Lipa City, Inc. (since 1997), UEM Mara Phils. Corp. (since 1996), Belle Systems Corp. (since 2004), Medimarketing, Inc. (since 2006), PEA Tollway Corporation (since 2007), Wiselink Investment Holdings, Inc. (since 2010), UEM Development Phils. Inc. (since 2010) and Paxys, Inc. (since May 2011). He is also Chairman and Director in Janlo Corp. (since 1994) and Corporate Secretary of Coastal Road Corp. (since 1999), Woodchild Holdings Inc. (since 1997), Distilled Spirits Association of the Phils., Inc. (since 2009). He graduated from the University of the Philippines with a Bachelors degree in Laws and from the Ateneo de Manila University with a Bachelor of Arts degree in Economics. He has been involved in the major mergers and acquisitions, banking, finance and securities and capital markets transactions in the Philippines and continues to have an active practice in these fields. He was a former Governor of the Integrated Bar of the Philippines for Western Visayas, Director of the Philippine Bar Association and Chairman of the Committee on Bar Discipline of the Integrated Bar of the Philippines.

19

e xec utive committee

Standing from L to R: Paul Y. Ung, Philip T. Ang Seated from L to R: Rafael F. Simpao Jr. Alberto S. Villarosa, Frederick Y. Dy

20

A L L

T H E

WAY

TO

THE

TOP

corporate gover na nce

The performance of Security Bank Corporation was achieved in the spirit of compliance with the principles of good corporate governance with the belief that good corporate governance leads to sustained creation of long-term shareholder value. The members of the Security Bank Group of Companies are governed by a Board-approved Manual of Corporate Governance, originally approved in 2002 and last amended in 2009. The Manual states that the Board of Directors is the highest authority in matters of governance and oversight over management of the Banks businesses. It likewise states the specific roles of Board Committees that will assist the Board in the compliance of the principles of good corporate governance. Security Banks Board of Directors is composed of 11 members, 3 of whom are independent directors. Early in January 2012, independent director JPM Lotilla tendered his resignation from the Board effective 31 December 2011. Director Lotilla has been with the Board of Security Bank since 2002. The Board wished him well in his new position at the Department of Transportation and Communication. The independent director position in the Board vacated by Atty. Lotilla will be replaced during the Annual Meeting of Shareholders. The roles of the President and the Chairman are separate and clearly defined. The Board members are highly qualified business professionals with a broad range of expertise. They have all passed through a screening and evaluation process and have attended the required training on corporate governance. The Board of Security Bank regularly meets every last Tuesday of the month based on the schedule indicated in the by-laws. A total of 12 meetings were held in 2011 with 7 directors attending all 12 meetings, and the other 4 directors posting 1 to 2 absences during the year. All directors were present during the Annual Shareholders meeting in May 2011. 2011 Record of Attendance for Board Meetings Number of Meetings in 2011 : 12 Chairman Frederick Y. Dy Vice Chairman Paul Y. Ung Members Philip T. Ang Diana P. Aguilar Anastasia Y. Dy Jose R. Facundo Jose Perpetuo M. Lotilla James JK Hung Eduardo I. Plana Rafael F. Simpao Jr. Alberto S. Villarosa industry concentration limits, collateral appraisal, acceptable collaterals covering cash secured loans, internal real estate loan limits, client call program, rate reasonability policy and amendments to personal loan policies. A total of 47 meetings of the Executive Committee were held in 2011 (from 45 in 2010) with average attendance by Committee members at 85% (from 83% in 2010). Executive Committee Meetings in 2011 Number of meetings in 2011 : 47 Chairman Rafael F. Simpao Jr. Members Philip T. Ang Frederick Y. Dy Paul Y, Ung Alberto S. Villarosa Alternate Anastasia Y. Dy

45 35 36 39 45 4

The Risk Management Committee is responsible for the development and oversight of the risk management program of the Bank and its subsidiaries, approving risk management strategies, policies and implementing guidelines where applicable, for managing and controlling the major risks, preventing losses and minimizing the impact of losses when they occur. Among the policies deliberated and approved during the year were policies covering risk ratings, debt and equity allocation, risk limits, contingency funding plan, business continuity management, information system management and ORM framework and manuals covering debt and equity arrangements and underwriting. Risk reports covering a monthly Market Risk Management Report, a quarterly Credit Risk Report, Operational Risk Management Reports, Liquidity and Price Risk Reports, and annual Back Testing Reports are presented during the monthly Board meetings for discussion. A total of 14 meetings (from 13 in 2010) of the Risk Management Committee were held in 2011 with attendance record at 100% (from 98% in 2010) Risk Management Committee Number of Meetings in 2011 : 14 Chairman Paul Y. Ung Members Anastasia Y. Dy Jose R. Facundo Rafael F. Simpao Jr. Alberto S. Villarosa Gina S. Go (Chief Risk Officer) Carlo M. Borromeo (Chief Financial Officer)

12 12 10 10 11 12 10 12 12 12 12

To carry out its functions, the Board has delegated its responsibilities to the following Board Committees: the Executive Committee, Corporate Governance Committee, Risk Management Committee, Audit Committee, Trust Committee and Restructuring Committee. The Executive Committee is the highest credit decision-making body of the universal bank, responsible for approval of loan accounts and credit policies, and notation of industry updates and credit risk reports. Among the credit policies approved during the year were credit authority limits,

14 14 14 14 14 14 14

The Charter of the Corporate Governance Committee defines the responsibility of the Committee in ensuring the Boards effectiveness and due observance of corporate governance principles and guidelines. This function covers the oversight over the Banks compliance function, over all applicable rules and regulations, codes of conduct and standards of good practice; the nomination and evaluation of performance of Board members and senior management; and development of policies covering board and management professional development.

21

In 2011, the Corporate Governance Committee deliberated and approved Board nominations and the evaluation of performance of the Board and its members, various personnel related matters covering the organization structure, officer assignments, promotions and benefits, and approved manuals covering the Compliance Programs and the Money Laundering and Terrorist Financing Prevention Programs. Quarterly reports by the Compliance Office are elevated to the Corporate Governance Committee. The Compliance Office reports to the Corporate Governance Committee. It is responsible for coordinating the identification and management of the compliance risk of the Bank and its subsidiaries. The Compliance Program covers compliance risk identification and assessment, compliance testing and training on compliance matters. The regular report of the Compliance Officer to the Corporate Governance Committee covers results of bankwide compliance with rules and regulations and the impact in terms of monetary penalties in the event of non-compliance, including feedback on reports to the AML Committee on covered and suspicious transactions, as well as risk rating for branches covering audit of KYC documents. The Compliance Office is responsible for creating a compliance supporting culture for the Bank and its subsidiaries. Compliance is the responsibility of all members of the organization, with the Board and Senior Management taking the lead in building a strong culture of compliance with applicable rules and regulations, with the processes and systems designed to operate to comply with these rules and regulations, and with employees adhering to a code of conduct encouraging a behavior of compliance to external and internal regulations to sustain excellence in performance. The Banks Code of Conduct encourages the values of honesty, industry and integrity to demonstrate competence, discipline and efficiency. In 2011, amendments to the Code of Conduct relating to personal investments for conflict of interest issues, and the relating guidelines for preferential rates for employees for availment of bank products and services were approved by the Board. As part of the compliance culture as a listed company, Security Bank is committed to fully disclose all material information for the benefit of the investors. The Bank is in compliance with reporting requirements of various regulatory agencies. Market sensitive information is disclosed to the Securities and Exchange Commission and the Philippine Stock Exchange in compliance with its Disclosure Rules. All public disclosures are posted in the Corporate website as part of transparency to investors. There were no monetary penalties charged to the Bank as a publicly listed company for non-compliance to disclosure rules. The Corporate Governance Committee had a total of 11 meetings (unchanged from 2010) with average attendance at 89% (from 95% in 2010). Corporate Governance Committee Number of Meetings in 2011 : 11 Chairman Philip T. Ang 9 Members Diana P. Aguilar (May to December) 6 James JK Hung 11 Jose Perpetuo M. Lotilla 8 Eduardo I. Plana (January to April) 4 Paul Y. Ung 11

The Audit Committee is responsible for reviewing the financial reporting process, the system of internal control and management of risks, the audit process, and the Companys monitoring of compliance with laws and regulations, and its own code of business conduct. The Banks Audit Division reports directly to the Board through the Audit Committee. The Audit Division is responsible for the development and execution of a comprehensive program of internal auditing assisting the organization by evaluating risk exposures and the adequacy and effectiveness of controls relating to the reliability and integrity of financial and operational data, and effectiveness and efficiency of operations. The Audit Divisions performance of duties is in accordance with standards set forth by the Banks internal policies, the Audit Manual, and by the International Standards for the Professional Practice of Internal Audit (ISPPIA). The Report of the Audit Committee is presented separately in the Annual Report. The Audit Committee had a total of 6 meetings in 2011 (from 5 meetings in 2010) with average attendance of 88% (from an average 94% in 2010). Audit Committee Number of Meetings in 2011 : 6 Chairman Jose Perpetuo M. Lotilla Members Philip T. Ang Diana P. Aguilar Eduardo I. Plana

5 5 5 6

The Trust Committees responsibilities and authorization include the review of assets placed under fiduciary custody and the investment / reinvestment and disposition of funds or property. During the year, the Committee reviewed the performance of all managed accounts, accounts opened and closed during the period, the general investment outlook and strategy, stress testing for UITFs, amendments to trust risk policies and the trust manual, as well as the appropriateness of the Trust organization to carry the plans of the business. During the year, 4 meetings were held with a 100% attendance from the members (unchanged from 2010). Trust Committee Number of Meetings in 2011 : 4 Chairman Jose R. Facundo Members James JK Hung Paul Y. Ung Alberto S. Villarosa

4 4 4 4

The Restructuring Committee is responsible for the approval of the remedial strategy and action plans for accounts, including accounts recommended for write off, compromise settlements, or with moratorium arrangements. The Committee had a total of 9 meetings with 100% attendance (from 4 meetings in 2010 with 100% attendance). Restructuring Committee Number of Meetings in 2011 : 9 Chairman Rafael F. Simpao Jr. Members Eduardo I. Plana Alberto S. Villarosa

9 9 9

22

A L L

T H E

WAY

TO

THE

TOP

risk man ageme nt

Alongside the Groups exceptional track record of continued growth and superior revenue performance, the Risk Management Committee closely worked with the Senior Management, officers and staff through the Banks Risk Management Group, to ensure effective implementation of its risk management framework.

Risk management Framework (Process Flow)

CREDIT

MARKET

LIQUIDITY

OPERATIONAL

POLICY DEVELOPMENT

RISK MANAGEMENT

RISK MONITORING

REPORTING

RISK MITIGATION

DECISION MAKING AND MONITORING

RISK CONTROL

RISK MANAGEMENT

BUSINESS MANAGEMENT

ACTIVITIES

CORE PRINCIPLE
Awareness and commitment to a single mission, common objectives, shared values and a Code of Conduct that are reviewed and renewed periodically; A suite of policies and procedures which are supplemented by supportive systems; Human resources practices intended to recruit, train and retain employees with the required specialist skills; Delegation of responsibility throughout the Bank and accountability for outcomes; Control processes including structured management reporting, a system of independent review and Board oversight; and An operational philosophy that seeks to anticipate and mitigate risks before they occur and that reflects the lessons learned when problems arise.

23

risk ma n ageme nt
CREDIT RISK
Measurement Risk Control & Mitigation a. Limits: Single name exposures Group exposures Industry exposures b. Mitigation: Collateral Netting arrangements Aggressive provisioning Monitoring & Reporting a. Risk rating reviewed at least annually b. Credit Classification done proactively c. Regular credit risk management report to the RMC and Management d. Regular NPA status reporting e. Lessons Learnt Reporting to the PDO Committee

Guided by our core risk principles, the following structures and activities are in place across all risk areas defined by the Bank to be the most critical, i.e., credit, market, liquidity and operational risks. RESPONSIBILITIES AND GOVERNANCE: 1. Board Responsibility and Oversight are exercised through various committees it created, specifically: a. Risk Management Committee - reviews, and approves, and ensures effective implementation of the risk management framework. It approves risk - related policies and discretionary authorities delegated to management, and evaluates the magnitude, distribution and direction of the Groups risks. b. Executive Committee - approves credit risk limits for large exposures of the Group, except for DOSRI loans which are approved by the Board of Directors regardless of amount c. Loan Restructuring Committee - approves remedial strategies on large non-performing exposures of the Group d. Audit Committee- through Internal Audit, oversees all aspects of internal control and provides independent assessment of the effectiveness of and compliance with the Groups risk and capital management policies and processes e. Corporate Governance Committee - oversees the compliance function, evaluates qualification of Board and senior management nominees, and Board performance evaluates 2. Independence of the Groups risk management function- The Risk Management Group headed by the Chief Risk Officer reports directly to the Risk Management Committee. 3. Board approved Strategic Plans and ICAAP (Internal Capital Adequacy and Assessment Process) define the Groups strategies and ensures alignment of strategic, risk management and capital management activities. 4. Policy and Procedures Manuals set out the framework for the management of credit, market, liquidity and operational risks, the provisions of which are regularly reviewed and updated to reflect changing risk conditions. 5. Product manuals ensure that products rolled out are risk - assessed, identified risks are sufficiently mitigated, acceptance of residual risks are properly approved, and all business, operational, legal, and regulatory requirements are sufficiently met. 6. Delegation Framework ensures that larger and more complex exposures or transactions are reviewed and/or approved by Senior Management and appropriate Board - constituted committees. 7. Clearly defined roles for front, middle and back offices ensure that systems for internal control and accountability are in place. 8. Specialized departments or units are in place for the risk management of people, process and physical assets, and for implementation and review of the internal control framework. 9. The implementation of the Groups risk management framework is independently assessed by Internal Audit and by the Regulator. RISK IDENTIFICATION, MEASUREMENT, MONITORING AND REPORTING 1. 2. 3. 4. Risk measurements are Basel II compliant. Risk controls and limits set are based on best practices. Measurement models are regularly tested. Monitoring and reporting infrastructure are in place.

a. Standardized approach b. 14 point internal risk rating model c. Classification of credits d. Concentrations by industry, large exposures, loan tenor, currency denomination, collateral cover e. Residual risks on collateral f. Impairment Loss estimation g. Stress Testing

MARKET AND LIQUIDITY RISK

Measurement a. Standardized approach b. Concentrations by type of investment, tenor, currency denomination c. Impairment Loss estimation d. Stress Testing Risk Controls a. Limits: Value-at-Risk (VAR) Earnings at Risk (EAR) Maximum Cumulative Outflow (MCO) b. Management Action Triggers (MAT) c. Exposure / position limits to and duration limits on specific investment types and products as needed, position limits d. Liquidity Contingency Plan e. Back testing to manage model risk Monitoring and Reporting a. Automated daily risk management reporting of limits and P&L to the President and other concerned parties b. Weekly liquidity reports to ALCO c. Monthly Market and Liquidity Risk Management Report submitted to business unit, President, and Board/RMC

OPERATIONAL RISK
Measurement a. Basic Indicator Approach b. Stress Testing Risk Control & Mitigation a. Risk Control and Self- Assessment b. Issue Escalation Process c. Loss/Event Reporting d. Key Risk Indicators e. Risk Mapping f. Business Continuity Planning Monitoring & Reporting a. Incident Reports b. Corrective Action Tracking c. Management Reports for Operating Review d. ORM reports to the RMC e. Audit reports to the Audit Committee

We manage our strategic and capital risk by setting clearly defined strategic plans approved by the Board of Directors after reviewing the business environment to identify opportunities and accompanying risks. We incorporate these strategies and identified risks in our capital planning under a business - as - usual as well as stressed scenarios. We regularly monitor performance results and issues of the strategies and make adjustments as needed. We manage our reputational risk through our policies and procedures that set service standards and define appropriate business conduct. We closely monitor compliance and legal issues especially high profile cases. We ensure that we communicate in an accurate and timely manner relevant information to our stakeholders. The Groups risk profile and capital cover remain strong. We have maintained our focus on our lending activity without compromising credit quality. o Our NPL ratio is the lowest in the industry while our reserve cover is the highest. o Concentration indices are within acceptable levels and properly mitigated. We have kept utilization of market and liquidity risk limits within our benchmark % to capital and operating profits. Excess during the first month of the year was mainly due to the early adoption of PFRS9. We kept our core revenue contribution to total revenues within targets. Security Banks capital adequacy ratio stood at 20.3%. A more detailed explanation of the Banks risk management activities and profile are contained in the disclosures to the financial statements. All in all, our unwavering commitment to pursuing our growth strategies coupled with sensible risk management and judicious capital planning make Security Bank Corporation well-positioned for the challenges of 2012.

24

A L L

T H E

WAY

TO

THE

TOP

REPORT of the a u dit committee

Report of the Audit Committee to the Board of Directors For the year ended December 31, 2011 The Audit Committee, composed of four non-executive directors, assists the Board of Directors in its oversight responsibilities. This is to enhance shareholders and other stakeholders value, and protect their interest as it relates to the following: a) b) c) d) e) Financial statements and the financial reporting process; System of internal controls; Risk management; Performance of internal and external auditors; and, Compliance with legal and regulatory matters.

In fulfilling these responsibilities, and in compliance with the Audit Committee Charter, the Committee held six meetings in 2011 with at least three (3) directors present, where the following significant matters were discussed and evaluated: a) b) c) d) e) The approval of the overall scope and audit plans of the Companys internal and external auditors, including the monitoring of its accomplishments; The results of internal and external audits, ensuring that management is taking appropriate corrective actions in a timely manner including addressing risk exposures, internal control and compliance issues; The results of external independent validation affirming that the internal audit activity generally Conforms to the Definition of Internal Auditing, the Code of Ethics, and the International Standards for the Professional Practice of Internal Audit (ISPPIA); The recommendation for re-appointment of SGV and Co. as the Banks external auditor for 2011, based on the review of their performance and qualifications, including consideration of managements recommendation; and, The continuing improvement and enhancements to the Audit Charter and other various related audit policies.

The internal audit activitys organizational independence was also confirmed by the Chief Audit Executive through the Audit Committee. Further, the Audit Committee recommended to the Board of Directors the inclusion of the Companys consolidated financial statements as of and for the year ended December 31, 2011 in the Companys Annual Report to the Stockholders and for filing with the Securities and Exchange Commission.

Philip T. Ang Chairman, Audit Committee

25

SE N IOR MA NAGEME N T

ALBERTO S. VILLAROSA President & Chief Executive Officer

ANASTASIA Y. DY Executive Director

EXECUTIVE VICE PRESIDE NTS

RAFAEL S. ALGARRA JR.

EDUARDO M. OLBES

26

A L L

T H E

WAY

TO

THE

TOP

SE NIOR VICE PRE SIDENTS

MELISSA R. AQUINO

BELEN W. AU

LESLIE Y. CHAM

GINA S. GO

JEANETTE S. KEH

BELEN C. LIM

JOSELITO E. MAPE

ALAN DAVID L. MATUTINA

RAUL MARTIN A. PEDRO

MA. MYLENE C. SUBIDO

MA. CRISTINA A. TINGSON

BENJAMIN Y. YOUNG

DANIEL U. YU

27

FIRST VICE PRESIDEN TS

MARIE ROSE C. ANCHETA

JASON T. ANG

MARIZA E. ARCILLA

RONALD I. AUSTRIA

BERNARD M. CARAGUE

HELEN L. CHUA

EDUARDO C. CORTES

ANGELITO MIGUEL D. DE LEON

LUIS S. ELIZAGA

PRIMITIVO NOEL S. LAGMAN JR.

LORETTA G. MANGILIT

GREGORIO V. RUBIO

WILFREDO S. TALAS TAS

RICARDO G. TORRES

OLIVIA B. YAO

28

A L L

T H E

WAY

TO

THE

TOP

ma nageme n t directory

President & Chief Executive Officer Alberto S. Villarosa Executive Director Anastasia Y. Dy Executive Vice President Rafael S. Algarra Jr. Eduardo M. Olbes Senior Vice Presidents Melissa R. Aquino Belen W. Au Leslie Y. Cham Gina S. Go Jeanette S. Keh Belen C. Lim Joselito E. Mape Alan David L. Matutina Raul Martin A. Pedro Ma. Mylene C. Subido Ma. Cristina A. Tingson Benjamin Y. Young Daniel U. Yu First Vice Presidents Marie Rose C. Ancheta Jason T. Ang Mariza E. Arcilla Ronald I. Austria Bernard M. Carague Helen L. Chua Eduardo C. Cortes Angelito Miguel D. De Leon* Luis S. Elizaga Primitivo Noel S. Lagman Jr. Loretta G. Mangilit Gregorio V. Rubio Wilfredo S. Talastas Ricardo G. Torres Olivia B. Yao Vice Presidents Delbert S. Ang It Alan E. Atienza Felipe R. Bautista Ma. Lourdes V. Borromeo Mylene G. Buencamino Susan K. Capalaran Fe V. Capistrano Bee Bee S. Chua Aristotle I. Cruz Raul Victor M. De Guzman Dennis Joy B. Ejercito Roberto Martin S. Enrile Ma. Paz Victoria R. Gonzalez Diana T. Gue Orencio Andre P. Ibarra III Roussel E. Larger Irahlyn S. Lariba

Yvonne Joanna P. Marcelo Jose Ma. G. Montinola Angel G. Muyot Jr. Henry Jesus S. Navarro Sarah M. Navarro Diana L. Ong** Jorge Lindley S. Ong Marlette A. Pineda Rolando T. Reyes Mai G. Sangalang Joyce L. So Joy V. Supan*** Zenaida L. Tan Simeon T. Yap Daphnie C. Yu Kim Teng Senior Assistant Vice Presidents Leah M. Aguilar John Francis B. Angeles Isabelita R. Briones Elsie D. Cabaluna Arlene D. Caringal Pamela A. Casin Eric T. Chiong Mary Christine L. Chua Monina J. Delarmente Ma. Victoria B. Dimayuga Razelli A. Embrador Marlene A. Esguerra Michael A. Gamo Susan P. Go Cristina V. Henson Ricky K. Kan Ma. Sari V. Magno Arlene D. Mape Rebecca P. Muyot Nila Q. Narciso Analiza C. Oblenida Sharon Melanie S. Pea Zenaida H. Perez Rowena B. Pinlac Don Mark C. Rances Emelita R. Regino Aster Lilli S. Samaniego Pearl C. San Diego Decy Narne D. Sarmiento Wee Sing O. Sy Karen H. Tan Marilyn D. Tan Cleofe A. Tanghal Gerundio G. Velasquez Jr. Mae S. Villanueva Carol P. Warner Assistant Vice Presidents Catherine N. Alberto Agnes Adela V. Alcid Rosalie B. Almiraez Marizol G. Alonzo Corazon L. Ang

Cherry C. Ang It Kim H. Apolega Rica F. Baello Ricardo Josef S. Bandal II Eudora A. Barrera Amelia F. Barrozo Dino V. Bringas Renato P. Cabrera Jr. Felicitas P. Castillo Manuel C. Chan Adrian S. Ching Aileen R. Chua Leonardo V. Dela Cruz Harold S. De Leon Carlyn Therese X. Dulay Jenny G. Dy Marjorie T. Esplana Delia J. Garbanzos Fe F. Golez Sheila G. Gomez Wilma C. Gomez Maria Lolita L. Gutierrez Johanna S. Hernandez Ma. Christi-Anna L. Ignacio Jasmin M. Ismael Ma. Theresa U. Javier Darius C. Kenny Madeleine Sophie K. Lagura Gerard G. Lee Diana C. Libunao Pacita G. Lim Ma. Carmencita R. Lopez Wilfredo S. Marcelino Jennifer Trinity S. Maynigo Helen B. Mejia Elpidio B. Misolas Jr. Donna G. Munoz Rizalino A. Pablo III Shirley Y. Po Emelita A. Quilala Pia Marie V. Ramos Sheilagh B. Rivera Josephine M. Robes Ma. Teresita G. Ruivivar Raymund O. Siao Lucy L. Sy Roreen Y. Tan Lucy E. Tiu Amalia V. Trinidad Ginger F. Tulio Rosa Maria G. Tumangday Ferdinand M. Uy Kristine Anne S. Vainio Jane T. Valerio Elma G. Villaroman Hanson D. Yu Richmond B. Zabala

* seconded to SBM Leasing ** seconded to SB Cards *** seconded to SB Capital

29

product s an d s ervices

Savings

Build-up Savings Account Dollar Savings Account Peso Savings Account - CashLink ATM Card Peso Savings Account - Passbook Third Currency Savings Account Investment Savings Account Junior One Savings Account E-Secure Savings Account

Other Banking Services

Checking

Auto Credit and Auto Debit Arrangement (ADA) - Diners Club International / Security Bank MasterCard Cardless Bills Payment Facility Cash Advance - Diners Club International / Security Bank MasterCard Dollar Demand Draft (Worldlink) Electronic Payments via Debit Card POS Terminals Managers Check/Gift Check Night Depository Box Safety Deposit Boxes

All-In-One-Checking Account Regular Checking Account Regular Checking Account with Interest Security Bank CheckOne Security Bank CheckPower Security Bank CheckRight

Credit Cards

Time Deposits

Dollar Time Deposit Peso Time Deposit Secure Dollar Optima

Cash Management Solutions

Liquidity Management Solutions CASA Manager Inward Returned Items Report (IR2) Collection Management Solutions AutoDebit Collections Manager Postdated Checks (PDC) Manager AutoDebit Collections Manager Plus (ADCM Plus) Billing Invoice Presentment Payment System (BIPPS) RealTime Electronic Payment System (REPS) Bills Payment Collection Facility Disbursement Management Solutions Check Payments Manager AutoCredit Payments Manager Payroll Manager Payroll Master EFPS Real Time SSS Real Time PAS5 ePayment PhilHealth Real Time Remittance Manager IBFT Facility Security Bank CheckRight

Diners Club Diners Club International Diners Club Premiere Diners Club Sure Diners Club Corporate Card Security Bank MasterCard Security Bank Classic MasterCard Security Bank Gold MasterCard Security Bank Platinum MasterCard Security Bank Sure MasterCard Security Bank e-Secure MasterCard Security Bank Corporate Card MasterCard

Pre-paid and Debit Cards

Security Bank CashCard Security Bank CashCard International MasterCard Security Bank CashLink Security Bank CashLink International MasterCard Security Bank Gift Card Security Bank Gift Card International MasterCard Security Bank eGift Card

Credit Facilities

Electronic Channels

Working Capital Financing Loan Line Bills Discounting / Loan line vs. Third Party PDCs Purchase of Receivables Omnibus Line Trade Facilities Letters of Credit / Trust Receipt Facilities (Import and Domestic) Export Packing Credit Export Bills Purchase Domestic Bills Purchase Floor Stock Financing

Security DigiBanker (Corporate Internet Banking) Security Bank Online (Retail Internet Banking) Security MobileBanker Security TeleBanker Automated Teller Machine Services (ATM)

Guarantees

Stand By Letters of Credit Credit Line Certification

Other Structured Loan Facilities

Disbursement Facility
Security E-Payroll

Collection Services

Security Collect-A-Check Security Collect-On-Site (Deposit Pick-up) Security Pay-A-Bill (Bills Payment)

Trade Payables Financing Distributors Financing Advances Secured by Trade Receivables (ASTRA) Loan Line with Third Party PDCs (PDC Discounting) Growers Poultry House Implements Financing Contract to Sell Financing Facility

30

A L L

T H E

WAY

TO

THE

TOP

Specialized Lending (External Funders) Third Party Funding

Bangko Sentral ng Pilipinas - Rediscounting Facility Development Bank of the Philippines - Industrial Guarantee and Loan Fund - Wholesale Lending Landbank - Countryside Loan Fund Line - Credit Support for the Environment Agribusiness and SMEs (CLF-CREAM)

SBM Leasing

Direct Lease Facility Sale and Leaseback Facility Lease Syndications Lease Sub-lease Vendor Lease Programs Mortgage Loans Receivables Discounting Facility

Trade Services

Letters of Credit Domestic Letter of Credit Export Bills Purchase / Negotiation Export Letter of Credit Advising Import Letter of Credit Standby Letter of Credit Documentary Collection Documents against Acceptance Documents against Payment Open Account Arrangement Trust Receipts Financing Remittance / Transfers Direct Remittances Trade-related Domestic Telegraphic Transfer Foreign Telegraphic Transfer - Inward - Outward Coinstar Money Transfer i-Remit Remit Agad (partnered with One Network Bank)

Dollar Denominated Bonds Sovereign $ Bonds GOCC-issued $ Bonds Philippine Corporate $ Bonds Peso Notes Deposit Based Products Secure Premium Dollar Earner Secure Flex Time Deposit Foreign Exchange Foreign Currency Notes Foreign Exchange Spot Third Currency Demand Draft (Selected) Financial Derivatives Forwards - Foreign Exchange Forwards - Interest Rates Forwards - Non-Deliverable Forwards (NDF) Swap - Foreign Exchange Swaps - Interest Rate Swaps - Cross Currency Swaps Options - Foreign Exchange Options - Interest Rate Options - Bond Options

Investment Banking

Equity Capital Markets (IPOs, Rights Offerings, Secondary Offerings, Follow-on Offerings, Preferred Share Issues) Debt Capital Markets (Registered Bond, Corporate Notes, Private Placements) Syndicated Loans Project Finance Financial Advisory Mergers and Acquisitions

SB Equities

Stock Brokering

Trust Services

Consumer Loans
Car Loan Doctors Financing Home Loan Salary Loan Personal Loan

Treasury Services

(Financial Instruments Actively Traded by SBC Treasury and Fixed Income Securities Division) Fixed Income Securities Peso Dominated Bonds Government Securities - Treasury Bills (T-Bills) - Retail Treasury Bonds (RTBs) - Fixed Rate Treasury Notes (FXTNs) - Zero Coupon Bonds GOCC-issued Bonds Philippine Corporate Bonds

Investment Management Account (IMA) Directed Investment Management Account (DIMA) Personal Living Trust (PLT) Special Purpose Trust (SPT) Retirement Plans Mortgage Trust Indenture / Collateral Trust Indenture Facility Agency Escrow Agency Unit Investment Trust Fund (UITF - Peso Denominated) SB Secure Peso Fund SB Peso Ease Fund SB Peso Asset Variety Fund SB Peso Equity Fund Unit Investment Trust Fund (UITF - Dollar Denominated) SB Secure Dollar Fund SB Dollar Choice Fund

31

SUBS IDIARIE S

SB CAPITAL INVESTMENT CORPORATION

2011 was a breakout year for SB Capital as it participated in an unprecedented number of significant capital raising transactions. As a result, SB Capital generated its historically largest level of fee-based revenues. In 2011 SB Capital took lead roles in a number of landmark debt and equity transactions such as the largest bond-swap transaction ever undertaken by the Republic of the Philippines, the largest ever equity raising transaction, and the largest ever issuance of preferred shares. Provides a wide range of capital markets products and investment banking services aimed at addressing the diverse nancial needs of corporate and public sector clients. Services include equity underwriting, project nance structuring and advisory, private placements, debt underwriting and syndication, and mergers and acquisitions (M&A) advisory. Stock brokering services are likewise provided through its whollyowned stock brokerage subsidiary, SB Equities, Inc. (SB Equities).

SB CARDS CORPORATION
A pioneer in the credit card industry with the introduction of the first credit card in the Philippines, Diners Club. Holds exclusive franchise of Diners Club credit cards in the country. Incorporated on October 9,1980 as Security Diners International Corporation and formerly known as Security International Card Corporation, SB Cards now offers two of the major credit card brands in the market, Diners Club and MasterCard.

SB EQUITIES, INC.
One of the leading stock brokerage houses in the Philippines. Continues to maintain its place of distinction among all local bank-owned equities brokering units in the country by ranking among the Top 15 Local Brokerage Houses in the Philippines. Placed 13th in overall ranking in 2011, based on traded value, among the most active member-brokers in the Philippine Stock Exchange (PSE). A consistent recipient of various awards and recognition from highly-respected institutions, one of which is 3rd Best Local Brokerage House in 2010 in a poll conducted by international financial publication Asiamoney.

32

A L L

T H E

WAY

TO

THE

TOP

SECURITY LAND CORPORATION

A majority-owned joint venture with a publicly-listed Singaporean corporate partner. It is the owner of prime properties located along Ayala Avenue in Makati City and parcels of land in Cavite. The Company has an on-going joint venture with Robinsons Land Corporation for the development of the Signa Designer Residences condominium located in its Ayala Avenue property. The Security Land building along Ayala Avenue is currently being retrofitted and renovated and will be leased out to corporate and business process outsourcing companies.

SB FOREX, INC.
A wholly - owned subsidiary of Security Bank Corporation. Engaged in foreign exchange dealership and brokerage, servicing the dollar and selected third currency requirements of banks, private companies and individuals.

SBM LEASING, INC.

Formerly Security Finance, Inc., SBM Leasing is a joint venture leasing company of Security Bank Corporation and Marubeni Corporation of Japan. Joint venture was established in May 2011. Specializes in heavy equipment leasing, offering the following services: Direct Lease Facility, Sale and Leaseback Facility , Lease Syndication, Lease Sub-lease, Vendor Lease Programs, Mortgage Loans and Receivables Discounting Facility.

management directory
SB CAPITAL INVESTMENT CORP. Chairman Alberto S. Villarosa President Eduardo M. Olbes Executive Directors Emilio Federico C. Galang III Lorenzo Sixto T. Lichauco Directors Gerald K. Abrogar Joy V. Supan Luis Martin E. Villalon SB EQUITIES, INC. Chairman President SBM LEASING, INC. Chairman President Eduardo M. Olbes Warren T. Sy Alberto S. Villarosa Angelito Miguel A. De Leon SB CARDS CORP. Chairman President Vice Presidents SECURITY LAND CORP. Chairman General Manager SB FOREX, INC. Chairman President Belen C. Lim Godofredo R. Galindez Jr. Sarah M. Navarro Diana L. Ong Catalina E. Papa Rafael F. Simpao Jr. Jose Ma. G. Montinola Rafael S. Algarra Jr Belen W. Au

33

CORPORATE SOCIAL R ES P ONS I B I L I T Y

Deepening Our Social Commitment

and Nurturing
BUILD A NATION: THE 60-CLASSROOMS PROJECT
In celebration of Security Bank Corporations 60th Anniversary, Security Bank Foundation, Inc. (SBFI) will provide the funding for the construction of 60 classrooms for public schools over a five-year period. Build a School, Build a Nation: The 60 Classrooms Project, is a partnership with Ateneo de Manila University which aims to address the lack of classrooms and develop programs to improve the academic performance of public school students. In 2011, the Security Bank Foundation and Ateneo started the project by building 13 classrooms for two public elementary schools and one secondary public high school in Cabiao, Nueva Ecija in partnership with the Local Government of Cabiao, Nueva Ecija, and DepEd-Nueva Ecija. Programmed for 2012 are classrooms for public schools in Davao and the Bicol region.

Our Communities

Increasing our reach, educating more children and youth SBFI continues to actively support the education of deserving students through its Scholarship Program and recognize students with exemplary academic performance through the Security Bank Student Excellence Award given to 12 top graduating students in business, management, finance and information Technology courses at the University of the Philippines, Ateneo de Manila University, University of Sto. Tomas, and the Centro Escolar University. Investing in education 13 269 399 12 51 3,500 500 public school classrooms constructed with funding from the Foundation students provided with scholarships/educational assistance in 2011 student beneficiaries supported since 1994 awardees of the Student Excellence Awards in 2011 Student Excellence Awardees since 2007 slightly used educational materials and school supplies collected from the Resource Mobilization Campaign for Public Schools recipients from public school elementary of brand new school supplies

In addition to scholarship support, the SBFI provided access to quality educational materials through donations of medical reference materials to the Library of the University of the Philippines College of

34

A L L

T H E

WAY

TO

THE

TOP

Medicine, educational and value-laden books to Ma. Lena M. Buhay Memorial Foundation in Quezon City for children with disabilities, as well as LCD projector units with wide screens to help the students of Marilao Central Elementary School in Bulacan and Quirino High School Quezon City better understand their lessons and learn from updated and quality sources of information. Providing opportunities for women through livelihood programs SBFI provided the Correctional Institution for Women (CIW) with the opportunity to sell their paper products, elegant beaded handbags made of scrap fabrics at the three-day sale of the SB Cards Group. In addition, 26 beneficiaries from among the unemployed wives and relatives of the Security Bank Agency Personnel learned how to cook, package and market sapin-sapin, maja blanca, chocolate moron, puto pao and puto cheese to earn additional income. Going green SBFI successfully launched a waste paper collection campaign as part of the Proper Waste Management and Recycling Program initiated by the Human Resource Development Division. Old magazines, phone directories and newspapers were donated to the CIW from which paper products were made for sale to support their activities. The campaign also promoted the practice of going green among employees and recycling in their homes and work place.

Deepening our commitment to good corporate citizenship The year 2011 marked the heightened social awareness and accountability within the Security Bank community, with more Bank employees and clients becoming engaged in the communities by working together to help others who are in need of assistance. Regalo Mo, Kinabukasan Ko (RMKK): Employee-Giving Project also successfully raised over Php 800,000.00 cash donations from employees and clients to help continue the education of the 105 children of the Security Bank Group Agency Personnel in elementary, high school and college or vocational technological course for school year 2011-2012. Security Bank employees from the five Bank branches in Cavite lent their time and resources to organize a painting outreach activity for Springville West II Community Day Care Center in Bacoor and Sta. Cruz Elementary School in Dasmarias, Cavite. Head Office employees participated in the one-day painting outreach activity for the classrooms constructed in Cabiao, Nueva Ecija. It was in the spirit of volunteerism that in June 2011, SBFI heeded the call for support for the victims of the flash flood which struck Davao City on June 29 by donating Php1-Million worth of relief goods. 580 affected families from five different barangays on the southern part of Davao benefited from the 2,740 pieces of plywood materials used to rebuild their homes, while 1,127 knapsack bags containing various school supplies were donated to the students of Matina Pangi Elementary School (MPES). SBFI also gave Php2.3-Million worth of donations to Cagayan de Oro, Iligan and Dumaguete for the communities affected by Typhoon Sendong. Bank employees and clients in Metro Manila, Luzon and Visayas areas also donated in cash or in kind to help their fellow Security Bankers in CDO and Iligan who were affected by Typhoon Sendong.

Security Bank Foundation continues to actively support the education of needy but deserving students through its Scholarship Program and recognize students with exemplary academic performance through the Security Bank Student Excellence Award.
35

statement o f ma nageme nt s res pon s i b ility FOR FINA N CIAL S TAT E M ENT S

36

A L L

T H E

WAY

TO

THE

TOP

i n dependen t a uditor s R E P O RT
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, 2011 and 2010, 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, 2011, 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 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. 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, 2011 and 2010, and their financial performance and their cash flows for each of the three years in the period ended December 31, 2011 in accordance with Philippine Financial Reporting Standards.

Report on the Supplementary Information Required Under Revenue Regulations 19-2011 and 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 required under Revenue Regulations 19-2011 and 15-2010 in Note 39 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. 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 (Group A), February 11, 2010, valid until February 10, 2013 Tax Identification No. 163-257-145 BIR Accreditation No. 08-001998-61-2009, June 1, 2009, valid until May 31, 2012 PTR No. 3174577, January 2, 2012, Makati City February 28, 2012

37

statements o f f ina ncial pos itio n

Consolidated Parent Company As of December 31 2011 2010 2011 2010 (Amounts in Thousands) ASSETS Cash and Other Cash Items (Note 16) P2,315,588 P2,420,849 P2,315,359 P2,420,642 Due from Bangko Sentral ng Pilipinas (Note 16) 15,936,205 29,111,752 15,936,205 29,111,752 Due from Other Banks 20,573,232 16,596,266 20,322,435 16,054,601 Interbank Loans Receivable and Securities Purchased Under Resale Agreements with the Bangko Sentral ng Pilipinas 5,150,000 926,800 5,150,000 926,800 Financial Assets at Fair Value through Profit or Loss (Note 8) 17,509,651 22,937,711 17,506,096 22,933,894 Financial Assets at Fair Value through Other Comprehensive Income (Note 9) 103,475 90,980 50,815 48,810 Investment Securities at Amortized Cost (Notes 10, 19 and 25) 56,381,157 13,428,717 56,381,157 13,389,501 Loans and Receivables (Notes 11 and 30) 91,963,847 74,504,592 90,529,954 73,287,740 Investments in Subsidiaries, an Associate and a Joint Venture (Note 12) 148,732 1,805 2,106,772 1,979,244 Property and Equipment (Note 13) 1,108,861 1,148,856 1,094,918 1,134,158 Investment Properties (Note 14) 1,423,301 2,051,518 415,416 457,790 Deferred Tax Assets (Note 26) 5,991 31,761 13,242 Intangible Assets (Note 15) 102,282 87,966 89,619 74,869 Other Assets (Note 15) 2,533,127 3,152,533 1,851,530 3,068,382 TOTAL ASSETS P215,255,449 P166,492,106 P213,750,276 P164,901,425 LIABILITIES AND EQUITY LIABILITIES Deposit Liabilities (Notes 16 and 30) Demand P34,430,553 P31,094,132 P34,999,696 Savings 58,048,714 55,802,605 58,181,574 Time 26,827,154 23,696,570 26,827,154 119,306,421 110,593,307 120,008,424 Financial Liabilities at Fair Value through Profit or Loss (Note 17) 2,312,351 4,693,385 2,312,351 Derivative Liabilities Designated as Hedges (Note 18) 209,471 218,967 209,471 Bills Payable and Securities Sold Under Repurchase Agreements (Note 19) 52,207,470 16,676,786 51,981,970 Acceptances Payable (Note 11) 179,678 653,946 179,678 Margin Deposits and Cash Letters of Credit 59,195 71,532 59,195 Managers and Certified Checks Outstanding 1,105,876 705,621 1,105,876 Income Tax Payable 307,089 11,149 294,867 Subordinated Note (Note 20) 2,986,875 2,980,959 2,986,875 Accrued Interest, Taxes and Other Expenses (Note 21) 1,549,813 1,477,082 1,493,007 Other Liabilities (Note 22) 3,696,429 2,993,594 3,356,303 TOTAL LIABILITIES 183,920,668 141,076,328 183,988,017 EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT COMPANY Capital stock (Note 24) 5,023,585 4,186,314 5,023,585 Additional paid-in capital (Note 24) 3,236,905 3,236,905 3,236,905 Surplus reserves (Note 24) 278,555 262,829 264,100 Surplus (Note 24) 21,817,609 16,890,846 21,171,928 Net unrealized gain on financial assets at fair value through other comprehensive income (Note 9) 21,975 20,470 21,975 Net unrealized gain on a subsidiarys financial assets at fair value through other comprehensive income (Note 9) 10,688 198 Cumulative foreign currency translation 43,766 (584) 43,766 30,433,083 24,596,978 29,762,259 NON-CONTROLLING INTEREST 901,698 818,800 TOTAL EQUITY 31,334,781 25,415,778 29,762,259 TOTAL LIABILITIES AND EQUITY P215,255,449 P166,492,106 P213,750,276
See accompanying Notes to Financial Statements.

P31,213,504 55,949,619 23,696,570 110,859,693 4,693,385 218,967 16,325,786 653,946 71,532 705,621 3,952 2,980,959 1,411,116 2,825,242 140,750,199 4,186,314 3,236,905 252,100 16,456,021 20,470 (584) 24,151,226 24,151,226 P164,901,425

38

A L L

T H E

WAY

TO

THE

TOP

statemen ts o f income

Consolidated Parent Company Years Ended December 31 2011 2010 2009 2011 2010 2009 (Amounts in Thousands) INTEREST INCOME ON Loans and receivables (Notes 11 and 30) P5,521,529 P5,145,739 P5,407,941 P5,272,445 P4,858,141 P5,086,369 Financial investments (Note 6) 4,900,057 3,278,783 3,618,049 4,899,602 3,276,787 3,615,460 Deposits with banks and others 196,249 390,613 435,370 173,381 370,267 419,624 Interbank loans receivable and securities purchased under resale agreements with the Bangko Sentral ng Pilipinas 57,274 111,173 31,393 57,274 111,173 31,393 10,675,109 8,926,308 9,492,753 10,402,702 8,616,368 9,152,846 INTEREST EXPENSE ON Deposit liabilities (Notes 16 and 30) 1,345,641 1,601,019 2,382,560 1,350,104 1,604,506 2,390,540 Subordinated notes, bills payable and securities sold under repurchase agreements and other borrowings (Notes 17, 19 and 20) 768,877 614,375 587,330 757,888 597,127 567,526 Derivative instruments (Note 17) 921,823 537,417 452,381 921,823 537,417 452,381 Derivatives designated as hedges (Note 18) 101,067 73,813 67,211 101,067 73,813 67,211 3,137,408 2,826,624 3,489,482 3,130,882 2,812,863 3,477,658 NET INTEREST INCOME 7,537,701 6,099,684 6,003,271 7,271,820 5,803,505 5,675,188 Gain on disposal of investment securities at amortized cost (Note 7) 1,356,655 1,356,655 Service charges, fees and commissions (Note 28) 915,145 798,596 790,313 527,088 502,012 463,366 Foreign exchange gain - net (Note 5) 827,774 774,046 700,098 816,038 761,618 686,985 Trading and securities gain - net (Notes 5 and 7) 355,729 4,772,458 18,849 352,546 4,779,391 5,907 Profit from assets sold/exchanged (Notes 14 and 15) 81,481 115,634 148,275 66,281 107,825 149,223 Rent (Notes 14, 30 and 31) 63,191 68,990 56,790 45,471 50,964 47,883 Share in net (loss) income of an associate and a joint venture(Note 12) (1,100) (7) 25 Miscellaneous (Notes 14 and 29) 522,778 221,084 181,577 474,783 172,350 183,674 TOTAL OPERATING INCOME 11,659,354 12,850,485 7,899,198 10,910,682 12,177,665 7,212,226 OPERATING EXPENSES Compensation and fringe benefits (Notes 27 and 30) 1,653,558 1,733,841 1,570,063 1,543,723 1,630,213 1,447,720 Taxes and licenses 598,528 715,326 567,325 564,938 680,528 529,462 Occupancy costs (Notes 14 and 31) 364,121 370,206 300,402 305,863 307,080 245,409 Depreciation and amortization (Note 13) 279,753 264,163 256,580 265,369 251,019 237,950 Provision for credit losses (Note 11) 59,093 236,134 487,440 159,198 376,589 Amortization of software costs (Note 15) 19,658 22,915 33,207 17,870 19,611 26,464 Provision for (recovery of) impairment losses (Notes 13, 14 , 15 and 33) (156,476) 11,157 24,944 (574) (12,194) 5,390 Miscellaneous (Note 14 and 29) 1,389,896 1,603,688 1,183,134 1,111,327 1,319,123 926,612 TOTAL OPERATING EXPENSES 4,208,131 4,957,430 4,423,095 3,808,516 4,354,578 3,795,596 INCOME BEFORE INCOME TAX 7,451,223 7,893,055 3,476,103 7,102,166 7,823,087 3,416,630 PROVISION FOR INCOME TAX (Note 26) 667,575 732,154 414,180 615,998 707,187 390,705 NET INCOME P6,783,648 P7,160,901 P3,061,923 P6,486,168 P7,115,900 P3,025,925 ATTRIBUTABLE TO: Equity holders of the Parent Company (Note 35) P6,700,750 P7,159,598 P3,061,659 Non-controlling interest 82,898 1,303 264 NET INCOME P6,783,648 P7,160,901 P3,061,923 Basic/Diluted Earnings Per Share (Note 35) P13.34 P14.25 P6.82
See accompanying Notes to Financial Statements.

39

statements o f cHA NG ES I N E Q UI T Y
Additional Surplus Capital Stock Paid-in-Capital Reserves Surplus (Note 24) (Note 24) (Note 24) (Note 24) Balance at January 1, 2011 Total comprehensive income for the year Transfer from surplus to surplus reserves Stock dividend - 20% Cash dividends - P2.00 per share Balance at December 31, 2011 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 - P2.00 per share Balance at December 31, 2010 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 Balance at January 1, 2011 Total comprehensive income for the year Transfer from surplus to surplus reserves Stock dividend - 20% Cash dividends - P2.00 per share Balance at December 31, 2011 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 - P2.00 per share Balance at December 31, 2010 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
See accompanying Notes to Financial Statements.

Net Unrealized Gain on Financial Assets at Fair Value through Other Comprehensive Income (Note 9) P20,470 1,505 P21,975 P 10,454 10,454 10,016 P20,470 P P

P4,186,314 837,271 P5,023,585 P4,186,314 4,186,314 P4,186,314 P3,293,457 892,857 P4,186,314

P3,236,905 P3,236,905 P3,236,905 3,236,905 P3,236,905 P1,688,169 1,548,736 P3,236,905

P262,829 15,726 P278,555 P251,950 251,950 10,879 P262,829 P234,900 17,050 P251,950

P16,890,846 6,700,750 (15,726) (837,271) (920,990) P21,817,609 P10,460,495 118,895 10,579,390 7,159,598 (10,879) (837,263) P16,890,846 P8,081,527 3,061,659 (17,050) (665,641) P10,460,495

Capital Stock (Note 24) P4,186,314 837,271 P5,023,585 P4,186,314 4,186,314 P4,186,314 P3,293,457 892,857 P4,186,314

Additional Paid-in Capital (Note 24) P3,236,905 P3,236,905 P3,236,905 3,236,905 P3,236,905 P1,688,169 1,548,736 P3,236,905

Surplus Reserves (Note 24) P252,100 12,000 P264,100 P242,800 242,800 9,300 P252,100 P234,900 7,900 P242,800

Surplus (Note 24) P16,456,021 6,486,168 (12,000) (837,271) (920,990) P21,171,928 P10,072,279 114,405 10,186,684 7,115,900 (9,300) (837,263) P16,456,021 P7,719,895 3,025,925 (7,900) (665,641) P10,072,279

Net Unrealized Gain on Financial Assets atFair Value Through Other Comprehensive Income (Note 9) P20,470 1,505 P21,975 P 10,454 10,454 10,016 P20,470 P P

40

A L L

T H E

WAY

TO

THE

TOP

Consolidated Years Ended December 31, 2011, 2010 and 2009 Equity Attributable to Equity Holders of the Parent Company Net Unrealized Gain (Loss) on Financial Assets Net Unrealized at Fair Value Net Unrealized Gain (Loss) on Through Other Gain (Loss) on Available Comprehensive Available- for-sale Income of a for-Sale Investments Subsidiary Investments of a Susidiary (Note 9) (Note 34) (Note 34) P198 10,490 P10,688 P (4,737) (4,737) 4,935 P198 P P P P (P304,882) (11,487) (316,369) 316,369 P (P776,738) 471,856 (P304,882) P P (P724) 724 P P316 (1,040) (P724)

Cumulative Foreign Currency Translation (P584) 44,350 P43,766 (P46,680) (46,680) 46,096 (P584) P162,856 (209,536) (P46,680)

Total P24,596,978 6,757,095 (920,990) P30,433,083 P17,783,378 113,849 17,897,227 7,537,014 (837,263) P24,596,978 P12,684,487 3,322,939 2,441,593 (665,641) 17,783,378

Non-controlling Interest P818,800 82,898 P901,698 P817,497 817,497 1,303 P818,800 P817,233 264 P817,497

Total Equity P25,415,778 6,839,993 (920,990) P31,334,781 P18,600,875 113,849 18,714,724 7,538,317 (837,263) P25,415,778 P13,501,720 3,323,203 2,441,593 (665,641) P18,600,875

Parent Company Years Ended December 31, 2011, 2010 and 2009 Net Unrealized Gain (Loss) on Available-for-Sale Available-for-Sale Investments (Note 34) P P (P304,882) (11,487) (316,369) 316,369 P (P776,738) 471,856 (P304,882)

Cumulative Foreign Foreign Currency Translation (P584) 44,350 P43,766 (P46,680) (46,680) 46,096 (P584) P162,856 (209,536) (P46,680)

Total Equity P24,151,226 6,532,023 (920,990) P29,762,259 P17,386,736 113,372 17,500,108 7,488,381 (837,263) P24,151,226 P12,322,539 3,288,245 2,441,593 (665,641) P17,386,736

41

statementS o f cA S H F L O WS
Consolidated Parent Company Years Ended December 31 2011 2010 2009 2011 2010 2009 (Amounts in Thousands) CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax P7,451,223 P7,893,055 P3,476,103 P7,102,166 P7,823,087 P3,416,630 Adjustments for: Unrealized market valuation (gain) loss on financial instruments at fair value through profit or loss (FVTPL) (1,588,569) 1,124,221 1,377,801 (1,588,569) 1,124,221 1,359,670 Gain on sale investment securities at amortized cost (Note 7) (1,356,655) (1,356,655) Depreciation and amortization (Note 13) 279,753 264,163 256,580 265,369 251,019 237,950 Gain on pre-termination of long term investment (Note 29) (219,418) (219,418) Provision for (recovery of) impairment losses (Notes 33, 13, 14 and 15) (156,476) 11,157 24,944 (574) (12,194) 5,390 Profit from assets sold/exchanged (81,481) (115,634) (148,275) (66,281) (107,825) (149,223) Provision for credit losses (Note 11) 59,093 236,134 487,440 159,198 376,589 Amortization of software costs (Note 15) 19,658 22,915 33,207 17,870 19,611 26,464 Amortization of transaction cost on subordinated debt (Note 20) 5,916 5,412 4,767 5,916 5,412 4,767 Share in net loss (income) of an associate and a joint venture (Note 12) 1,100 7 (25) Trading and securities loss on available-for-sale (AFS) investments (Note 7) (3,094,132) (82,000) (3,094,132) (82,000) Trading and securities gain on held-to-maturity (HTM) investments (Note 7) (804,645) (804,645) Changes in operating assets and liabilities: Decrease (increase) in the amounts of: Financial assets at FVTPL 4,626,099 (9,329,999) (5,322,275) 4,625,837 (9,364,183) (5,286,551) Loans and receivables (17,341,486) (4,831,033) (3,060,803) (17,065,351) (5,002,841) (2,768,170) Other assets 1,161,160 (1,346,498) (1,410,600) 1,212,952 (1,338,626) (1,393,007) Increase (decrease) in the amounts of: Deposit liabilities 8,713,114 2,068,336 5,212,775 9,148,731 2,038,446 5,201,812 Financial liabilities at FVTPL (3,735,276) (3,735,276) Acceptances payable (474,268) 447,622 97,455 (474,268) 447,622 97,455 Margin deposits and cash letters of credit (12,337) (20,801) (346,427) (12,337) (20,801) (346,427) Managers and certified checks outstanding 400,255 (46,958) 206,060 400,255 (46,958) 206,060 Accrued interest, taxes and other expenses 72,731 142,609 (831,782) 81,891 145,128 (849,170) Other liabilities 670,263 (525,423) (441,680) 498,488 (423,610) (145,002) Net cash generated from (used in) operations 2,229,675 (7,899,492) (4,202,011) 2,576,022 (8,202,071) (3,822,039) Income taxes paid (345,866) (737,262) (414,313) (311,841) (716,894) (390,902) Net cash provided by (used in) operating activities 1,883,809 (8,636,754) (4,616,324) 2,264,181 (8,918,965) (4,212,941) CASH FLOWS FROM INVESTING ACTIVITIES Acquisitions of: Investment securities at amortizedcost (66,028,473) (13,288,330) (66,067,689) (13,288,330) Investment in joint venture (Note 12) (119,858) (97,529) Financial assets at fair value through other comprehensive income (500) (500) (Forward)

42

A L L

T H E

WAY

TO

THE

TOP

Consolidated 2011 2010

Parent Company Years Ended December 31 2009 2011 2010 (Amounts in Thousands)

2009

AFS investments P (P7,289,556) (P13,857,567) P (P7,253,446) (P13,818,378) HTM investments (411,128) (411,128) Property and equipment (Note 15) (200,071) (173,917) (167,924) (193,458) (163,425) (162,920) Software costs (Note 17) (32,974) (25,504) (30,449) (32,621) (20,742) (29,755) Proceeds from: Sale/maturities of investment securities at amortized cost 24,432,688 24,432,688 Disposal of investment properties 294,407 115,594 385,360 91,643 98,602 385,360 Disposal of property and equipment 31,881 70,423 11,498 31,371 67,492 10,502 Liquidation of investment in an associate 1,831 Sale of AFS investments 38,756,558 20,314,191 38,756,558 20,273,191 Sale/maturities of HTM investments 2,718,120 1,721,714 2,718,120 1,721,714 Net cash provided by (used in) investing activities (41,621,069) 20,883,388 7,965,695 (41,836,095) 20,914,829 7,968,586 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from bills payable and securities sold under repurchase agreements 2,983,196,174 1,426,847,203 2,328,432,668 2,980,559,674 1,422,479,201 2,327,963,668 Settlements of bills payable and securities sold under repurchase agreements (2,947,665,490) (1,417,368,211) (2,326,186,762) (2,944,903,490) (1,412,882,209) (2,326,186,762) Dividends paid (918,416) (835,635) (664,070) (918,416) (835,635) (664,070) Proceeds from issuance of common shares (Note 24) 2,441,593 2,441,593 Net cash provided by financing activities 34,612,268 8,643,357 4,023,429 34,737,768 8,761,357 3,554,429 Effect of exchange rate changes in cash and cash equivalents 44,350 46,095 (209,536) 44,350 46,095 (209,536) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (5,080,642) 20,936,086 7,163,264 (4,789,796) 20,803,316 7,100,538

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR Cash and other cash items 2,420,849 2,388,608 2,288,825 2,420,642 2,388,400 Due from Bangko Sentral ng Pilipinas 29,111,752 12,062,184 11,677,975 29,111,752 12,062,184 Due from other banks 16,596,266 5,261,789 2,691,517 16,054,601 4,852,895 Interbank loans receivable and securities purchased under resale agreements with the Bangko Sentral ng Pilipinas 926,800 8,407,000 4,298,000 926,800 8,407,000 49,055,667 28,119,581 20,956,317 48,513,795 27,710,479 CASH AND CASH EQUIVALENTS AT END OF YEAR Cash and other cash items 2,315,588 2,420,849 2,388,608 2,315,359 2,420,642 Due from Bangko Sentral ng Pilipinas 15,936,205 29,111,752 12,062,184 15,936,205 29,111,752 Due from other banks 20,573,232 16,596,266 5,261,789 20,322,435 16,054,601 Interbank loans receivable and securities purchased under resale agreements with the Bangko Sentral ng Pilipinas 5,150,000 926,800 8,407,000 5,150,000 926,800 P43,975,025 P49,055,667 P28,119,581 P43,723,999 P48,513,795 OPERATIONAL CASH FLOWS FROM INTEREST AND DIVIDENDS Interest received P9,599,163 P9,490,596 P9,768,734 P9,326,739 P9,180,244 Interest paid (3,067,866) (2,818,715) (4,156,945) (3,061,120) (2,803,947) Dividends received 5,074 5,137 1,662 3,687 79,052

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

4,298,000 20,609,941

2,388,400 12,062,184 4,852,895 8,407,000 P27,710,479

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

43

statements o f comprehen s ive i ncome

Consolidated 2011 2010 Years Ended December 31 2009 2011 (Amounts in Thousands)

Parent Company 2010 2009

NET INCOME FOR THE YEAR P6,783,648 P7,160,901 P3,061,923 P6,486,168 P7,115,900 OTHER COMPREHENSIVE INCOME (LOSS) (Note 34) Cumulative translation adjustments 44,350 46,096 (209,536) 44,350 46,096 Net unrealized gain on financial assets at fair value through other comprehensive income, net of tax 1,505 10,016 1,505 10,016 Net unrealized gain (loss) on a subsidiarys: Financial assets at fair value through other comprehensive income 10,490 4,935 Available for sale investments (1,040) Net unrealized gain on available-for-sale investments, net of tax 316,369 471,856 316,369 OTHER COMPREHENSIVE INCOME FOR THE YEAR 56,345 377,416 261,280 45,855 372,481 TOTAL COMPREHENSIVE INCOME P6,839,993 P7,538,317 P3,323,203 P6,532,023 P7,488,381 ATTRIBUTABLE TO: Equity holders of the Parent Company P6,757,095 P7,537,014 P3,322,939 Non-controlling interest 82,898 1,303 264 P6,839,993 P7,538,317 P3,323,203
See accompanying Notes to Financial Statements.

P3,025,925 (209,536)

471,856 262,320 P3,288,245

44

A L L

T H E

WAY

TO

THE

TOP

b ra n ch directory

ALABANG ACACIA G/F Kingston Tower, Acacia Avenue, Madrigal Business Park, Alabang, Muntinlupa City Tel. No. (02) 850-1727, 850-1729, 0922-8722032 Fax No. (02) 842-1971 ALICIA National Highway (Maharlika Highway), Poblacion, Alicia, Isabela Tel. Nos. (078) 662-8206,0922-8722056 Fax No. (078) 662-8207 ANGELES SBC Building, McArthur Highway, Balibago, Angeles City Tel. Nos. (045) 332-1074, 322-7110, 0922-8722082 Fax No. (045) 892-2419 AYALA ALABANG El Molito Building, Madrigal Business Park, Madrigal Avenue, Ayala Alabang, Muntinlupa City Tel. Nos. (02) 772-1701, 772-1856, 0922-8722049 Fax No. (02) 772-1705 BACOLOD SBC Building, BS Aquino Drive corner Hilado Extension, Bacolod City Tel. No. (034) 435-0856, 0922-8722146 Fax No. (034) 434-2225 BACOLOD-RIZAL SBC Building, corner Rizal Avenue and Locsin Streets, Bacolod City Tel. No. (034) 434-2225 Fax No. (034) 435-0856 BAGUIO SBC Building, corner Chugum and Abanao Streets, Baguio City Tel. No. (074) 442-8053, 0922-8722084 Fax No. (074) 442-2671 **BALANGA Galeria Victoria, J.P. Rizal Street, Poblacion Balanga City Tel. No. (047) 237-0060, (047) 237-0081, 0922- 8722281 Fax No. (047) 2370059 BALIWAG 317 B.S. Aquino Avenue, Baliwag, Bulacan Tel. Nos. (044) 766-3328, 0922-8722349 Fax No. (044) 766-3297 BALUT #49 Honorio Lopez Boulevard corner Rosario Nicasio Streets, Balut, Tondo, Manila Tel. No. (02) 251-4596, 0922-8722042 Fax No. (02) 251-4597 BANAWE-KITANLAD Nos. 34-36 Banawe corner Kitanlad Streets, Quezon City Tel. No. (02) 743-1755, 0922-8722154 Fax No. (02) 743-1752

BATANGAS Rizal Avenue, Batangas City Tel. No. (043) 723-3143, 0922-8722108 Fax No. (02) 520-6138 BATINO-CALAMBA G/F City Gold Building, Calamba Premier Industrial Park Complex, Batino, Calamba, Laguna Tel. Nos. (049) 508-0567, 0922-8722245 Fax No. (049) 508-0566 BEL-AIR #68, Jupiter St., Bel-Air, Makati City Tel. No. (02) 896-3130, 0922-8722015 Fax No. (02) 896-3313 BF PARAAQUE Presidents Avenue, BF Homes, Paraaque City Tel. No. (02) 820-6269, 0922-8722155 Fax No. (02) 807-1444 BICUTAN #52 Doa Soledad Avenue, Better Living, Paraaque City Tel. No. (02) 822-1648, 0922-8722176 Fax No. (02) 822-4938 BIAN National Highway, Barrio San Vicente, Bian, Laguna Tel. No. (049) 511-6400, 0922-8722107 Fax No. (02) 520-8236 BINONDO #463-469 Ewan Building, Quintin Paredes Street, Binondo, Manila Tel. Nos. (02) 244-5201, 244- 5202, 0922-8722051 Fax No. (02) 243-1388 BLUMENTRITT Chinese General Hospital Compound, Blumentritt corner Aurora Boulevard, Sta. Cruz, Manila Tel. No. (02) 741-5522, 711-4141 loc 2605, 0922-8722043 Fax No. (02) 711-3365 BUTUAN J.C. Aquino Avenue, Butuan City, Agusan del Norte Tel. No. (085) 815-5292, 0932-8353443 Fax No. (085) 815-5291 CABANATUAN G/F Insular Life Building, Rizal Street, Cabanatuan City, Nueva Ecija Tel. No. (044) 463-7636, 0922-8722086 Fax No. (044) 463-3610

45

b ra nch directory

CAGAYAN DE ORO-OSMEA Osmea Street, Cagayan De Oro Tel. Nos. (08822) 723-411, (088) 856-3965, 0922-8722152 Fax No. (08822) 723-411 CAGAYAN DE ORO-VELEZ Velez corner Montalban Street, Cagayan de Oro City Tel. Nos. (088) 310-4294, (088) 856-6632, 0922-872-22976 Fax No. (08822) 728-334 CALAMBA National Highway, Calamba, Laguna Tel. Nos. (049) 545-2196, 0922-8722109 Fax No. (02) 520-8818 CATARMAN G.H. Del Pilar corner Marcos Streets, Catarman, Northern Samar Tel. No. (055) 251-8841 Fax No. (055) 251-8404 CAUAYAN G/F Leoncia C. Uy Building, Maharlika Highway, Cauayan City, Isabela Tel. No. (078) 652-3950, 0922-8722267 Fax No. (078) 652-3949 CEBU - BANILAD TPR Building, A.S. Fortuna Avenue, Banilad, Cebu City Tel. No. (032) 345-0028, 0922-8722330 Fax No. (032) 344-6283 CEBU - BUSINESS PARK Mindanao Avenue, Cebu Business Park, Cebu City Tel. No. (032) 238-0409, 0922-8722136 Fax No. (032) 238-0408 CEBU - JUAN LUNA #99 Osmea Boulevard, Cebu City Tel. No. (032) 254-4080, 0922-8722137 Fax No. (032) 253-0053 CLARK - ANGELES Clark Center Two Building - Retail 3, Berthaphil Compound III Clark Center, Jose Abad Santos Avenue, Clark Field Zone, Angeles City, Pampanga Tel. No. (045) 893-4343, 0922-8722238 Fax No. (045) 499-1247 COMMONWEALTH Lot 10 Block 9 Commonwealth Avenue, Quezon City Tel. No. (02) 932-9749, 0922-8722156 Fax No. (02) 952-0295

CONGRESSIONAL Congressional Avenue corner EDSA, Quezon City Tel. No. (02) 927-6720, 0922-8722034 Fax No. (02) 927-9219 CUBAO Quezon Theater Building, General Roxas Street, Araneta Center, Cubao, Quezon City Tel. No. (02) 911-2879, 0922-8722177 Fax No. (02) 911-2877 DAGUPAN MH Del Pilar, Dagupan City Tel. Nos. (075) 522-0631, 515-3444, 0922-8722219 Fax No. (075) 522-4783 DASMARIAS Gen. Emilio Aguinaldo Highway, Dasmarias, Cavite Tel. No. (046) 416-1143, 0922-8722114 Fax No. (02) 529-8157 DAVAO - MAGSAYSAY #358 R. Magsaysay Avenue, Davao City Tel. No. (082) 221-8413, 0922-8722138 Fax No. (082) 221-3443 DAVAO - MONTEVERDE Monteverde corner Bruno Gempesaw Street, Davao City Tel. No. (082) 222-2124, 0922-8722139 Fax No. (082) 224-2966 DAVAO - PANABO Quezon Boulevard, Panabo, Davao Del Norte Tel. No. (084) 822-2183, 0922-8722140 Fax No. (084) 628-5377 DAVAO - RIZAL Anda corner Rizal Street, Davao City Tel. No. (082) 221-0358, 0922-8722141 Fax No. (082) 221-0357 DEL MONTE G/F SBC Building, Lot 19-B Blk 344 Del Monte Avenue, Quezon City Tel. Nos. (02) 415-1789, 740-5985, 0922-8722179 Fax No. (02) 740-6372 DELA ROSA G/F Kings Court II Building, #2129 Pasong Tamo corner Dela Rosa Street, Makati City Tel. Nos. (02 ) 812-2620, 811-2913, 0922-8722017 Fax No. (02 ) 893-2502

46

A L L

T H E

WAY

TO

THE

TOP

DIVISORIA I Pasilio A Ledesma Building, #853 Tabora Street, Binondo, Manila Tel. Nos. (02) 243-2440, 243-3104, 0922-8722166 Fax No. (02) 243-3105 DIVISORIA II UG 3 & 4 S2 New Divisoria Market, M. de Santos Street, Binondo, Manila Tel. Nos. (02) 244-4515, 244-4517, 0922-8722167 Fax No. (02) 244-4518 DUMAGUETE Portal West Building, Siliman Avenue corner Hibbard Avenue, Dumaguete City Tel. No. (035) 422-0001, 0922-8722372 Fax No. (035) 422-0002 EASTWOOD The Eastwood Excelsior Building, Eastwood City, Bagumbayan, Quezon City Tel. Nos. (02) 584-3184, 0922-8722195 Fax No. (02) 584-3183 E. RODRIGUEZ #970 E. Rodriguez Sr. Avenue, Quezon City Tel. No. (02) 724-3927, 0922-8722180 Fax No. (02) 412-5030 EDSA CENTRAL Units 7 & 8, Level 1, Soho Central, Shaw Boulevard, Greenfield District, Mandaluyong City Tel. Nos. (02) 661-5646, 696-6864, 0922-8722044 Fax No. (02) 661-5640 EDSA - KALOOKAN No. 512 EDSA near corner Urbano Plata Street, Kalookan City Tel. No. (02) 364-0049, 0922-8722254 Fax No. (02) 363-5525 ELCANO Elcano corner San Nicolas Street, Binondo, Manila Tel. No. (02) 708-5046, 0922-8722205 Fax No. (02) 708-5053 EMERALD G/F Taipan Place, Emerald Avenue, Ortigas Center, Pasig City Tel. No. (02) 470-3104, 0922-8722208 Fax No. (02) 470-2678 ERMITA UN Avenue, corner Bocobo and Churruca Streets, Ermita, Manila Tel. Nos. (02) 523-6567, 523-6586, 0922-8722157 Fax No. (02) 536-9060

EVANGELISTA - QUIAPO G/F Jack & Carlos Building, #609 Evangelista Street, Quiapo, Manila Tel. No. (02) 736-3071, 0922-8722182 Fax No. (02) 736-3072 FORT BONIFACIO - INFINITY G/F The Infinity Tower, 26th Street, Fort Bonifacio Global City, Taguig City Te. No. (02) 555-0933, 0922-8843986 Fax No. (02) 553-0936 FORT BONIFACIO - NET CUBE G/F Net Cube Building, 3rd Avenue corner 30th Street, E Square Zone, Fort Bonifacio Global City, Taguig City Tel. No. (02) 659-5867 , 0922-8722061 Fax No. (02) 659-6908 FORT BONIFACIO - ST. LUKES MEDICAL CENTER G/F Medical Arts Building, St. Lukes Medical Center, Fort Bonifacio Global City, Taguig Tel. Nos. (02) 403-1668, 0922-8722252 Fax No. (02) 403-3207 GREENHILLS Greenhills Mansion 37, Annapolis Street, San Juan Tel. Nos. (02) 721-1353, 721-1463, 0922-8722045 Fax No. (02) 721-1460 GUADALUPE #2185 Magsaysay Avenue, Guadalupe, Makati City Tel. No. (02) 882-1872, 729-5784, 0922-8722035 Fax No. (02) 882-1868 HEAD OFFICE - CCAD 6776 Ayala Avenue, Makati City Tel. Nos. (02) 888-7276-77,82-83,85, 894-5301,891-1033, 1078, 867-6788 loc 2001-02, 09228722067 Fax No. (02) 891-1078 HERRERA G/F Exchange Building, No. 107 V.A. Rufino corner Bolanos & Esteban Streets, Legaspi Village, Makati City Tel. Nos. (02) 892-1636, 892-3214, 0922-8722026 Fax No. (02) 892-2190 HV DELA COSTA G/F Alpha Salcedo Building, HV Dela Costa Street, Salcedo Village, Brgy. Bel-Air, Makati City Tel. No. (02) 867-2156, 0922-8722027 Fax No. (02) 867-3151

47

b ra nch directory

ILIGAN Quezon Avenue corner Miguel Obach Street, Poblacion, Iligan City Tel. No. (063) 221-5227, 0922-8722150 Fax No. (063) 221-3007 ILOILO Charly Resources Building, corner Ledesma and Quezon Streets, Iloilo City Tel. No. (033) 337-9653, 0922-8722143 Fax No. (033) 337-7068 IMUS G/F 680 Home Appliances Building, Aguinaldo Highway, Tanzang Luma, Imus, Cavite Tel. No. (046) 471-5414, 0922-8722115 Fax No. (02) 529-8613 KALOOKAN #266 Rizal Avenue Extension, between 5th & 6th Avenue, Grace Park, Caloocan City Tel. Nos. (02) 365-8703, 04, 05, 06, 0922-8722047 Fax No. (02) 362-3666 KATIPUNAN G/F Xanland Condominium Building, Katipunan Avenue, Quezon City Tel. No. (02) 426-7034, 0922-8722158 Fax No. (02) 426-7036 KORONADAL 601 General Santos Drive, Koronadal City Te. Nos. (083) 520-2115 , 0922-8843972 Fax No. (083) 228-7736 LAOAG G/F Ricafort Building, Gen. Segundo Avenue near Rizal Avenue, Laoag City Tel. No. (077) 770-3311, 0922-8722302 Fax No. (077) 770-3200 LA TRINIDAD JC-084, Barangay Pico, KM. 5, La Trinidad, Benguet Tel. No. (074) 422-1216, 0922-8722089 Fax No. (074) 422-1586 LA UNION G/F Kenny Plaza, Quezon Avenue, San Fernando City, La Union Tel. No. (072) 607-8802, 0922-8722090 Fax No. (072) 700-5338 LIPA CM Recto Avenue, Lipa City, Batangas Tel. Nos. (043) 756-2113, 0922-8722131 Fax No. (02) 520-6234

LUCENA Doa Christina Building, corner Tagarao & Merchant Streets, Lucena City Tel. No. (042) 373-1077, 0922-8722132 Fax No. (02) 250-8266 MAGDALENA 1025-1027 Masangkay Street (near Soler St.), Binondo, Manila Tel. Nos. (02) 243-4822, 244-5473, 0922-8722159 Fax No. (02) 244-5744 MALABON #2 Manapat Street corner Rizal Avenue Extension, Malabon City Tel. No. (02) 281-2880, 0922-8722185 Fax No. (02) 281-5903 **MALABON - TUGATOG 134 M.H Del Pilar Street, Brgy. Tugatog, Malabon City Tel. No. (02) 990-9653, 0932-8480042 Fax No. (02) 990-3225 MALATE M. Adriatico corner San Andres Street, Malate, Manila Tel. Nos. (02) 524-8112, 567-6258, 0922-8722186 Fax No. (02) 521-0745 MALINTA - PASO DE BLAS #271 Paso de Blas, Valenzuela City Tel. No. (02) 292-5804, 0922-8722187 Fax No. (02) 292-6133 MALOLOS Feliza Jazz Building, MacArthur Highway, Sumapang Matanda, Malolos City, Bulacan Tel. No. (044) 796-1983, 0922-8722095 Fax No. (044) 796-1982 MANDALUYONG G/F Shaw Cinema Building, Shaw Boulevard corner Jose Tiosejo Street, Mandaluyong City Tel. No. (02) 534-3232, 0922-8722188 Fax No. (02) 531-7381 MANDAUE Tipolo Square, Mandaue Highway, Tipolo, Mandaue City, Cebu Tel. No. (032) 345-0564, 0922-8722197 Fax No. (032) 345-2582 MANDAUE - NORTH ROAD National Highway, Brgy. Tabok, Mandaue City Tel. No. (032) 345-3092, 0922-8722329 Fax No. (032) 344-7214 MARIKINA Bayan-Bayanan Avenue, Concepcion, Marikina Tel. No. (02) 942-2565, 0922-8722189 Fax No. (02) 941-0689

48

A L L

T H E

WAY

TO

THE

TOP

MARKET! MARKET! 157-A G/F Market! Market! Mall, Bonifacio Global City, Taguig City Tel. Nos. (02) 886-6685, 846-6413, 0923-8722190 Fax No. (02) 887-1730 MAYPAJO APN Building, #172 A. Mabini Street, Maypajo, Caloocan City Tel. No. (02) 285-6249, 0922-8722191 Fax No. (02) 285-9065 MEDICAL CITY G/F Medical Arts Tower, The Medical City Hospital Ortigas Avenue, Pasig City Tel. No. (02) 706-0445, 0922-8722165 Fax No. (02) 706-0276 MEDICAL PLAZA G-103 Medical Plaza Building, Dela Rosa corner Amorsolo Street, Makati City Tel. Nos. (02) 813-6536, 813-6549, 0922-8722028 Fax No. (02) 813-6544 MENDIOLA San Beda College Compound, Mendiola Street, San Miguel, Manila Tel. No. (02) 734-7507, 0922-8722160 Fax No. (02) 735-2746 MEYCAUAYAN Meycauayan College Building, Calvario, Meycauayan, Bulacan Tel. No. (044) 840-9417, 0922-8722098 Fax No. (044) 228-3516 MOLINO G/F E.V.Y. Building, Molino Boulevard, Molino, Bacoor, Cavite Tel. No. (046) 477-2449, 0922-8843957 Fax No. (046) 477-2166 NAGA LAM Building, Peafrancia Avenue, Zone 4 San Francisco, Naga City Tel. No. (054) 472-4210, 0922-8722099 Fax No. (02) 250-8008 NAIA 2/F Arrival Lobby, NAIA Complex, Pasay City Tel. No. (02) 833-1190, 0922-8722036 Fax No. (02) 833-1191 NIEVA G1 & G2 Asian Mansion 2, Dela Rosa corner Nieva Street, Legaspi Village, Makati City Tel. No. (02) 843-6537, 0922-8722029 Fax No. (02) 843-6322

NINOY AQUINO AVENUE G/F PAIR-PAGS Centre, NAIA Complex, Ninoy Aquino Avenue, Paraaque City Tel. Nos. (02) 852-1286, 852-9463, 0922-8722037 Fax No. (02) 851-7370 NOVALICHES Krystle Building, 858 Quirino Highway, Novaliches, Quezon City Tel. No. (02) 936-3506, 0922-8722192 Fax No. (02) 936-6374 ORMOC Real Street, Poblacion, Ormoc City, Leyte Tel. Nos. (053) 255-4118, 09328453442 Fax No. (053) 561-0369 ORTIGAS SBC Building, #228 Ortigas Avenue, Greenhills, San Juan Tel. No. (02) 721-4148, 0922-8722038 Fax No. (02) 721-1967 PANDACAN #2339 Palumpong Street, Pandacan, Manila Tel. No. (02) 564-4891, 0922-8722193 Fax No. (02) 563-3391 PASAY LIBERTAD Libertad corner Colayco Street, Pasay City Tel. No. (02) 831-0471, 0922-8722194 Fax No. (02) 831-8163 PASAY MACAPAGAL AVENUE M1-A, 8 Macapagal Place, Hobbies of Asia, No. 8 Pres. D. Macapagal Boulevard, Pasay City Tel. No. (02) 556-4291, 0922-8722198 Fax No. (02) 556-4304 PASEO DE ROXAS Corporate Business Center, #151 Paseo de Roxas corner Arnaiz, Makati City Tel. Nos. (02) 815-1002, 815-1003, 840-1970, 0922-8722030 Fax No. (02) 840-1969 PASIG - SANTOLAN G/F Unit 101 - A AD Center Square, Amang Rodriguez corner Evangelista Street, Santolan, Pasig City Tel. No. (02) 681-4618, 0922-8722175 Fax No. (02) 646-4113 PASONG TAMO EXT. G/F Narra Building, Pasong Tamo Extension, Makati City Tel. Nos. (02) 892-8535, 814-0267, 0922-8722040 Fax No. (02) 892-8536

49

b ra nch directory

QUEZON AVENUE CAPITOL MEDICAL G/F Capitol Medical Center, Quezon Avenue corner Scout Magbanua, Quezon City Tel. No. (02) 441-4729, 0922-8722206 Fax No. (02) 441-4728 QUIRINO HIGHWAY #360 Quirino Highway, Sangandaan, Novaliches, Quezon City Tel. No. (02) 454-0981, 0922-8722041 Fax No. (02) 939-1262 REINA REGENTE #1040 Reina Regente, Binondo, Manila Tel. Nos. (02) 244-8827, 244-8850, 0922-8722207 Fax No. (02) 244-8825 ROMAN SQUARE Roman Square Building, #979-981 Soler corner Roman Street, Binondo, Manila Tel. Nos. (02) 244-1395, 244-1396, 0922-8722048 Fax No. (02) 244-3734 ROSARIO G/F SBC Building, Gen. Trias Drive, Rosario, Cavite Tel. No. (046) 438-5434, 0922-8722085 Fax No. (02) 529-8854 SALCEDO LPL Plaza Building, #124 L.P. Leviste Street, Salcedo Village, Makati Tel. Nos. (02) 840-3720, 840-3242, 0922-8722031 Fax No. (02) 812-4045 SAN FERNANDO G/F Doa Sevilla Building, MacArthur Highway, Brgy. Dolores, San Fernando City, Pampanga Tel. No. (045) 961-8692, 0922-8722087 Fax No. (045) 961-8693 SAN MIGUEL AVENUE #101 Medico Building, San Miguel corner Lourdes Street, Pasig City Tel. Nos. (02) 633-3876, 633-6822, 0922-8722209 Fax No. (02) 631-3876 SAN PABLO Rizal Avenue corner P. Zamora Street, San Pablo, Laguna Tel. No. (049) 562-5327, 0922-8722091 Fax No. (02) 520-6052 SAN PEDRO Mabini Street, Poblacion, San Pedro, Laguna Tel. No. (02) 808-4811, 0922-8722092 Fax No. (02) 520-1296

SANTIAGO G/F Flora Sy Building, Maharlika Highway, Victory Norte, Santiago City, Isabela Tel. Nos. (078) 682-8142, 246-2001, 0922-8722093 Fax No. (078) 682-8590 SOLER Le Mar Ben II Building, along San Bernardo Street, Sta. Cruz, Manila Tel. Nos. (02) 733-2704, 733-2718, 0922-8722161 Fax No. (02) 733-2694 STA. ELENA 168 Shopping Mall, Sta. Elena Street, Binondo, Manila Tel. Nos. (02) 245-5506, 245-5509, 0922-8722212 Fax No. (02) 243-5678 STA. MARIA F. Halili Avenue, Brgy. Bagbaguin, Sta. Maria, Bulacan Tel. Nos. (044) 641-1718, 0922-8722368 Fax No. (044) 641-4279 STA. ROSA Brgy. Pulong, Sta. Cruz, Sta. Rosa, Laguna Tel. No. (049) 539-1562, 0922-8722096 Fax No. (02) 520-8164 SUBIC G/F Subic International Hotel Building, 888 Sta. Rita Road, Subic Bay Freeport Zone, Zambales Tel. No. (047) 252-3431, 0922-8722097 Fax No. (047) 252-6086 SUCAT SBC Building, Dr. A. Santos Avenue corner St. Peter Street, Sucat, Paraaque City Tel. No. (02) 820-6269, 0922-8722213 Fax No. (02) 825-3163 SUMULONG G/F Silicon Building, #167 Sumulong Highway, Mayamot, Antipolo, Rizal Tel. No. (02) 682-3011, 0922-8722214 Fax No. (02) 682-3017 TACLOBAN G/F Roqson Building corner P. Burgos Street and Rizal Avenue, Tacloban City Tel. No. (053) 321-4527, 0922-8722261 Fax No. (053) 531-0112 TAGAYTAY SBC Building, Aguinaldo Highway, Mendez Crossing, Tagaytay City Tel. No. (046) 413-1859, 0922-8722144 Fax No. (02) 529-8170

50

A L L

T H E

WAY

TO

THE

TOP

TAGBILARAN #27 CPG Avenue, Tagbilaran City, Bohol Tel. No. (038) 411-2930, 0922-8722148 Fax No. (038) 501-7060 TAGUM G/F Uy Ching Siong Commercial Building, Pioneer Avenue corner Quezon Street, Tagum City Tel. Nos. (084) 218-8294, 0922-8722016 Fax No. (084) 218-8293 TARLAC G/F Intellect Building, along McArthur Hi-way, Brgy. San Sebastian, Tarlac City Tel. No. (045) 628-0147, 0922-8722094 Fax No. (045) 628-0396 TAYTAY Km. 23 Ortigas Avenue Extension, Taytay, Rizal Tel. Nos. (02) 658-0031, 658-0032, 0922-8722215 Fax No. (02) 660-2287 TEKTITE G/F East Tektite Towers, Exchange Road, Ortigas Center, Pasig City Tel. Nos. (02) 636-1653, 631-5854, 0922-8722050 Fax No. (02) 636-1655 TOMAS MORATO G/F Maine Building, 236 Tomas Morato Avenue, South Triangle, Quezon City Tel. No. (02) 426-2866, 0922-8722162 Fax No. (02) 415-2556 TUGUEGARAO A. Bonifacio corner Washington Street, Tuguegarao, Cagayan Tel. Nos. (078) 844-2320, 844-1016, 0922-8722149 Fax No. (078) 844-8753 URDANETA G/F CSI Building, McArthur Highway, Urdaneta City, Pangasinan Tel. No. (075) 656-8001, 656-8002, 0922-87222328 Fax No. (075) 568-2284 UST G/F UST Main Building, Espaa, Manila Tel. Nos. (02) 731-3118, 749-9739, 0922-8722163 Fax No. (02) 749-9703 VALENZUELA Km. 14 McArthur Highway, Malinta, Valenzuela City Tel. No. (02) 292-1911, 0922-8722151 Fax No. (02) 292-7311

VALLE VERDE E. Rodriguez Jr. Avenue corner Borres Street, Bgy. Bagong Ilog, Pasig City Tel. No. (02) 671-7135, 0922-8722216 Fax No. (02) 671-7134 VISAYAS AVENUE #241 Visayas Avenue (near corner Tandang Sora), Quezon City Tel. No. (02) 928-1226, 0922-8722217 Fax No. (02) 455-0471 WACK WACK G/F Lee Gardens Condominium, corner Shaw Boulevard and Lee Street, Wack Wack, Mandaluyong City Tel. No. (02) 584-2153, 0922-8722181 Fax No. (02) 584-2109 ZAMBOANGA Veterans Avenue, Zamboanga City Tel. Nos. (062) 991-0056, 991-0183, 0922-8722147 Fax No. (062) 993-2970 *ZAMBOANGA-CANELAR Mayor Jaldon St., Barangay Canelar, Zamboanga City Tel. No. (062) 991- 1217 Fax No. (062) 991-4919

* As of March 2012 ** Opened in 2012

51

i n vestor ass is tance

SHAREHOLDER INFORMATION
You can find out more about Security Bank Corporation quickly and easily on the corporate website www.securitybank.com where annual reports, quarterly results, financial highlights, company news and events are published.

SHAREHOLDER SERVICES
For inquiries regarding dividend payments, change of address and accounts status, lost or damaged stock certificates, please write or call: Security Bank Corporation Office of the Corporate Secretary 8th Floor, Security Bank Centre Ayala Avenue, Makati City Tel. Nos. (632) 888-7335, 888-7215 Stock Transfer Service, Inc. 34th Floor Rufino Pacific Tower 6748 Ayala Avenue, Makati City Tel. Nos. (632) 403-2410 to 12

INVESTOR RELATIONS
For investor-related concerns, please call (632) 888-7221 or e-mail GVelasco@securitybank.com.

52

www. securitybank.com
Security Bank Centre 6776 Ayala Avenue, Makati City, 0719 Philippines Tel Nos. (632) 867-6788 / 888-78 / 88-791-88 Fax No. (632) 893-2563