BANKOFTHEPHILIPPINEISLANDS · PDF fileSchedule of Philippine Financial Reporting ... IFRIC 16...

BANK OF THE PHILIPPINE ISLANDSFinancial Indicators

As at December 31, 2016 and 2015

2016 2015

Liquidity Ratio 62.44% 66.71%

Debt-to-Equity Ratio 37.53% 13.93%

Asset-to-Equity Ratio 1,045.03% 1,009.00%

Interest Rate Coverage Ratio 292.58% 298.97%

Return on Equity Ratio 13.77% 12.33%

Return on Assets 1.39% 1.30%

Cost to Income Ratio 52.50% 53.69%

Cost to Assets Ratio 2.21% 2.27%

Capital to Assets Ratio 9.57% 9.91%

Net Interest Margin 2.85% 2.98%

A842016 INTEGRATED ANNUAL AND SUSTAINABILITY REPORT

A85 2016 INTEGRATED ANNUAL AND SUSTAINABILITY REPORT

Reconciliation of Retained Earnings Available for Dividend DeclarationFor the Year Ended December 31, 2016

(In Millions of Pesos)

BANK OF THE PHILIPPINE ISLANDSBPI Building

6768 Ayala Avenue, Corner Paseo de RoxasMakati City

Unappropriated Retained Earnings, based on audited financial statements, December 31, 2015 42,401

Add: Net income actually earned/realized during the period 20,885

Less: Non-actual/unrealized income net of taxEquity in Net income of associate/joint venture -Unrealized foreign exchange gain - net (except Cash

-and Cash Equivalents)Unrealized actuarial gain -Unrealized trading gain 516Fair value adjustment of Investment Property resulting to gain -Adjustment due to deviation from PFRS/GAAP-gain -Other unrealized gains or adjustments to the retained earnings as

-a result of certain transactions accounted for under PFRS516

Add: Non-actual lossesDepreciation on revaluation increment (after tax) -Adjustment due to deviation from PFRS/GAAP - loss -Loss on fair value adjustment of investment property (after tax) -

Subtotal -

Net income actually earned during the period 20,369

Add (Less):Dividend declarations during the period (7,087)Appropriations of Retained Earnings during the period (103)Reversals of appropriations -Effects of prior period adjustments/others -Treasury shares -

(7,190)

Total Retained Earnings, End55,580Available for Dividend


BANK OF THE PHILIPPINE ISLANDS

BPI FAMILY SAVINGSBANK, INC. 100%

BPI DIRECT BANKO, INC. aSAVINGS BANK 100%

BPI OPERATIONS MGT.CORP. 100%

AYALA PLANS. 98.67%BPI INVESTMENT & MGT.,INC. 100%

BPI CARD FINANCECORP. 100%

BPI FOREX CORP. 100%BPI COMPUTER SYSTEMSCORP. 100%

FIRST FAR EAST DEV’TCORP. 100%

FEB STOCK BROKERS INC.100%

SANTIAGO LAND DEV’TCORP. 100%

FEB SPEED INT’L100%

BPI EXPRESSREMITTANCE CORP

USA 100%

BPI EXPRESSREMITTANCE SPAIN

S.A. 100%

GREENENTERPRISES S.R.Lin LIQUIDATION 100%

BPI ASSETMANAGEMENT and

TRUSTCORPORATION 100%

BPI CAPITAL CORP 100%

BPI SECURITIESCORP 100%

BPI CENTURY TOKYO LEASE & FINANCE CORP 51%

BPI CENTURY TOKYORENTAL CORP. 100%

CITYTRUST SECURITIESCORP. 100%

BPI INT’L FINANCE LIMITED100%

BPI/MS INSURANCE CORP.41.40%

FGU INSURANCE CORP94.62%

BPI REMITTANCE CENTREHK, LTD. 100%

AF CAPITAL FUND Sdn,Bhd. 49%

Hilldale Co. Limited100%

Begara Co. Limited100%

BPI/MS INSURANCE CORP.9.45%

FCS INSURANCE AGENCY24.92%

BPI EUROPE PLC 100% FILINVEST ALGOFINANCIAL CORP. 100%

AF HOLDINGS &MANAGEMENT CORP 100%

BEACON PROPERTYVENTURES, INC. 20%

NATIONAL REINSURANCECORP. OF THE

PHILIPPINES 13.69%

GLOBAL PAYMENTS ASIA-PACIFIC PHILIPPINES INC.

49%

CITYTRUST REALTY CORP.40%

BPI NomineesLimited 100%

AF PAYMENTS, INC 20%

BPI PHILAM LIFEASSURANCE

CORPORATION 47.67%

AF CAPITAL FUND SDN, BHD. 49%

BPI INVESTMENT MGT.,INC. 100%


Bank of the Philippine Islands

Schedule of Philippine Financial Reporting StandardsEffective as at December 31, 2016

The following table summarizes the effective standards, amendments and interpretations as atDecember 31, 2016:

AdoptedNot

AdoptedNot

Applicable

Framework for the Preparation and Presentation ofFinancial StatementsConceptual Framework Phase A: Objectives and qualitativecharacteristics

PFRSs Practice Statement Management Commentary

Philippine Financial Reporting Standards

PFRS 1(Revised)

First-time Adoption of Philippine FinancialReporting Standards

Amendments to PFRS 1 and PAS 27: Cost of anInvestment in a Subsidiary, Jointly Controlled Entityor Associate

Amendments to PFRS 1: Additional Exemptions forFirst-time Adopters

Amendment to PFRS 1: Limited Exemption fromComparative PFRS 7 Disclosures for First-timeAdopters

Amendments to PFRS 1: Severe Hyperinflation andRemoval of Fixed Date for First-time Adopters

Amendments to PFRS 1: Government Loans

PFRS 2 Share-based Payment

Amendments to PFRS 2: Vesting Conditions andCancellations

Amendments to PFRS 2: Group Cash-settled Share-based Payment Transactions

Amendments to PFRS 2: Measurement of Cash-settled Share-based Payment Transactions*

PFRS 3(Revised)

Business Combinations


Bank of the Philippine IslandsSchedule of Philippine Financial Reporting StandardsEffective as at December 31, 2016Page 2

AdoptedNot

AdoptedNot

Applicable

PFRS 4 Insurance Contracts

Amendments to PAS 39 and PFRS 4: FinancialGuarantee Contracts

Amendments to PFRS 4: Implementation ofPFRS 9*

PFRS 5 Non-current Assets Held for Sale and DiscontinuedOperations

PFRS 6 Exploration for and Evaluation of Mineral Resources

PFRS 7 Financial Instruments: Disclosures

Amendments to PAS 39 and PFRS 7:Reclassification of Financial Assets

Amendments to PAS 39 and PFRS 7:Reclassification of Financial Assets - Effective Dateand Transition

Amendments to PFRS 7: Improving Disclosuresabout Financial Instruments

Amendments to PFRS 7: Disclosures - Transfers ofFinancial Assets

Amendments to PFRS 7: Disclosures - OffsettingFinancial Assets and Financial Liabilities

Amendments to PFRS 7: Transition Disclosures*

Amendments to PFRS 7: Disclosures - HedgeAccounting*

PFRS 8 Operating Segments

PFRS 9 Financial Instruments*

Amendments to PFRS 9: Transition Disclosures*

PFRS 10 Consolidated Financial Statements

Amendments to PFRS 10, PFRS 12 and PAS 28:Application of the Consolidation Exception forInvestment Entities

Amendments to PFRS 10 and PAS 28: Sale orContribution of Assets between an Investor and itsAssociate or Joint Venture*

PFRS 11 Joint Arrangements

Amendments to PFRS 11: Acquisition of an Interestin a Joint Operation



AdoptedNot

AdoptedNot

Applicable

PFRS 12 Disclosure of Interests in Other Entities

Amendments to PFRS 10, PFRS 12 and PAS 28:Application of the Consolidation Exception forInvestment Entities

PFRS 13 Fair Value Measurement

PFRS 14 Regulatory Deferral Accounts

PFRS 15 Revenue from Contracts with Customers*

Amendment to PFRS 15: Identifying PerformanceObligations, Licenses of Intellectual Property, andPrincipal versus Agent Assessment*

PFRS 16 Leases*

Philippine Accounting Standards

PAS 1(Revised)

Presentation of Financial Statements

Amendment to PAS 1: Capital Disclosures

Amendments to PAS 32 and PAS 1: PuttableFinancial Instruments and Obligations Arising onLiquidation

Amendments to PAS 1: Presentation of Items ofOther Comprehensive Income

Amendments to PAS 1: Disclosure Initiative

PAS 2 Inventories

PAS 7 Statement of Cash Flows

Amendments to PAS 7: Disclosure Initiative*

PAS 8 Accounting Policies, Changes in AccountingEstimates and Errors

PAS 10 Events after the Reporting Period

PAS 11 Construction Contracts

PAS 12 Income Taxes

Amendment to PAS 16 - Deferred Tax: Recovery ofUnderlying Assets

Amendments to PAS 12: Recognition of DeferredTax Assets for Unrealized Losses*



AdoptedNot

AdoptedNot

Applicable

PAS 16 Property, Plant and Equipment

Amendments to PAS 16 and PAS 38: AcceptableMethods of Depreciation and Amortization

Amendments to PAS 16 and PAS 41: Bearer Plants

PAS 17 Leases

PAS 18 Revenue

PAS 19(Revised)

Employee Benefits

Amendments to PAS 19: Contributions fromEmployees or Third Parties

PAS 20 Accounting for Government Grants and Disclosureof Government Assistance

PAS 21 The Effects of Changes in Foreign Exchange Rates

Amendment to PAS 21: Net Investment in a ForeignOperation

PAS 23(Revised)

Borrowing Costs

PAS 24(Revised)

Related Party Disclosures

PAS 26 Accounting and Reporting by Retirement BenefitPlans

PAS 27(Revised)

Separate Financial Statements

Amendments to PAS 27: Use of Equity Method inSeparate Financial Statements

PAS 28(Revised)

Investments in Associates and Joint Ventures

Amendments of PFRS 10, PFRS 12 and PAS 28:Application of the Consolidation Exception forInvestment Entities

Amendments to PFRS 10 and PAS 28: Sale orContributions of Assets between an Investor and itsAssociate or Joint Venture*

PAS 29 Financial Reporting in Hyperinflationary Economies



AdoptedNot

AdoptedNot

Applicable

PAS 32 Financial Instruments: Presentation

Amendments to PAS 32 and PAS 1: PuttableFinancial Instruments and Obligations Arising onLiquidation

Amendment to PAS 32: Classification of RightsIssues

Amendments to PAS 32: Offsetting Financial Assetsand Financial Liabilities

PAS 33 Earnings per Share

PAS 34 Interim Financial Reporting

PAS 36 Impairment of Assets

Amendment to PAS 36: Recoverable AmountDisclosures

PAS 37 Provisions, Contingent Liabilities and ContingentAssets

PAS 38 Intangible Assets

Amendments to PAS 16 and PAS 38: AcceptableMethods of Depreciation and Amortization

PAS 39 Financial Instruments: Recognition andMeasurement

Amendments to PAS 39: Transition and InitialRecognition of Financial Assets and FinancialLiabilities

Amendments to PAS 39: Cash Flow HedgeAccounting of Forecast Intragroup Transactions

Amendments to PAS 39: The Fair Value Option

Amendments to PAS 39 and PFRS 4: FinancialGuarantee Contracts

Amendments to PAS 39: Eligible Hedged Items

Amendments to PAS 39 and PFRS 7:Reclassification of Financial Assets

Amendments to PAS 39 and PFRS 7:Reclassification of Financial Assets - Effective Dateand Transition



AdoptedNot

AdoptedNot

Applicable

Amendments to IFRIC 9 and PAS 39: EmbeddedDerivatives

Amendments to PAS 39: Novation of Derivatives

Amendments to PAS 39: Hedge Accounting

PAS 40 Investment Property

Amendment to PAS 40: Transfers of InvestmentProperty*

PAS 41 Agriculture

Amendments to PAS 16 and PAS 41: Bearer Plants

Philippine Interpretations

IFRIC 1 Changes in Existing Decommissioning, Restorationand Similar Liabilities

IFRIC 2 Members' Share in Co-operative Entities and SimilarInstruments

IFRIC 4 Determining Whether an Arrangement Contains aLease

IFRIC 5 Rights to Interests arising from Decommissioning,Restoration and Environmental RehabilitationFunds

IFRIC 6 Liabilities arising from Participating in a SpecificMarket - Waste Electrical and Electronic Equipment

IFRIC 7 Applying the Restatement Approach under PAS 29Financial Reporting in Hyperinflationary Economies

IFRIC 10 Interim Financial Reporting and Impairment

IFRIC 12 Service Concession Arrangements

IFRIC 13 Customer Loyalty Programmes

IFRIC 14 The Limit on a Defined Benefit Asset, MinimumFunding Requirements and their Interaction

Amendments to IFRIC 14: Prepayments of aMinimum Funding Requirement

IFRIC 15 Agreements for the Construction of Real Estate*

IFRIC 16 Hedges of a Net Investment in a Foreign Operation

IFRIC 17 Distributions of Non-cash Assets to Owners

IFRIC 18 Transfers of Assets from Customers



AdoptedNot

AdoptedNot

Applicable

IFRIC 19 Extinguishing Financial Liabilities with EquityInstruments

IFRIC 20 Stripping Costs in the Production Phase of a SurfaceMine

IFRIC 21 Levies

IFRIC 22 Foreign Currency Transactions and AdvanceConsideration*

SIC-7 Introduction of the Euro

SIC-10 Government Assistance - No Specific Relation toOperating Activities

SIC-15 Operating Leases - Incentives

SIC-25 Income Taxes - Changes in the Tax Status of anEntity or its Shareholders

SIC-27 Evaluating the Substance of Transactions Involvingthe Legal Form of a Lease

SIC-29 Service Concession Arrangements: Disclosures

SIC-31 Revenue - Barter Transactions Involving AdvertisingServices

SIC-32 Intangible Assets - Web Site Costs

The standards, amendments and interpretations marked with an asterisk (*) have been issued but arenot yet effective for December 31, 2016 financial statements. Unless otherwise stated, these standards,amendments and interpretations have not been early adopted.

The standards, amendments and interpretations that are labeled as “Not Applicable” are already effective as atDecember 31, 2016 but will never be relevant/applicable to the Bank or are currently not relevant to the Bankbecause it has currently no related transactions.


BANK OF THE PHILIPPINE ISLANDSAs of December 31, 2016Annex A - Financial Assets

(in Millions of Pesos)

Number of sharesor principal

amount of bondsand notes

Amount shown in thebalance sheet

Incomereceived andaccrued

Due from Bangko Sentral ng Pilipinas 239,514

2,059

Due from other banks 23,037Interbank loans receivable and Securitiespurchase under agreements to resell 15,236

Sub-total 277,787Financial assets at fair value through profit orloss - Trading securities (*) 14,603

Financial assets at fair value through profitor loss - Derivative financial assets 2,993

Sub-total 17,596 180Available-for-sale securities (*) 24,301 469Held-to-maturity securities (*) 268,483 8,746Loans and advances, net 1,040,720 48,843Others 4,255 -TOTAL 1,633,142 60,297

(*) Please refer succeeding pages for the detailed information on these financial assets.


Schedule A - Financial Assets

BANK OF THE PHILIPPINE ISLANDSAs of December 31, 2016

(In Millions of Pesos)

Schedule B: Amounts Receivable from Directors, Officers,Employees, Related Parties and Principal Stockholders(Other than Related Parties)

Name and Designation of debtor

Balance at

beginning of

period Additions

Amounts

collected

Amounts

written off Current

Not

Current

Balance at end

of period

ALI COMMERCIAL CENTER INC. 25 12 - - 37 - 37ALI MAKATI HOTEL PROPERTY INC 3,324 1,434 1,531 - 163 3,064 3,227AMAIA 18 - 9 - 9 - 9ARVO COMMERCIAL CORPORATION 165 - 9 - 9 147 156ASIAN I-OFFICE PROPERTIES INC 1,276 378 469 - 448 737 1,185AVIDA 13 1,795 13 - 1,795 - 1,795AYALA CORP 14,108 - 8,143 - 1,800 4,165 5,965AYALA LAND INC 2,286 4,917 1,694 - 3,749 1,760 5,509AYALA PROPERTY MANAGEMENT CORPORATION 14 - 14 - - - -BONIFACIO HOTEL VENTURES INC 414 409 414 - 21 388 409BPI SECURITIES 72 - 72 - - - -CEBU HOLDINGS, INC. 89 - 89 - - - -CRESTVIEW E-OFFICE CORPORATION 42 34 42 - 34 - 34ELTA INDUSTRIES INC 25 17 25 - 17 - 17ENCHANTED KINGDOM INC 350 200 58 - 259 233 492GNPOWER KAUSWAGAN LTD. CO. 700 3,240 700 - 7 3,233 3,240GREENHAVEN PROPERTY VENTURES INC 400 380 400 - 20 360 380HILLSFORD PROPERTY CORPORATION 66 - 12 - 54 - 54HLC DEVELOPMENT CORPORATION 1,391 - 180 - 179 1,032 1,211MDC 100, INC. 380 - 190 - 190 - 190MEDICAL CENTER TRADING CORP. 130 13 75 - 68 - 68MERCURY GROUP OF COMPANIES 479 - 475 - 4 - 4NORTH TRIANGLE DEPOT COMMERCIAL 1,944 - 85 - 119 1,740 1,859NORTHGATE HOTEL VENTURES INC 125 - 2 - 6 117 123PHILIPPINE INTEGRATED ENERGY 1,730 - 88 - 88 1,554 1,642PHILUSA CORP. 38 78 32 - 84 - 84SOUTHCREST HOTEL VENTURES INC 180 - 2 - 9 169 178SUBIC BAY TOWN CENTER INC 788 - 96 - 692 - 692SUNNYFIELD E-OFFICE CORPORATION 98 - 18 - 80 - 80TELSTAR MANUFACTURING CORP 14 9 14 - 9 - 9TROPICAL HUT FOODMARKET INC. 30 30 30 - 30 - 30VARIOUS MANPOWER LOANS 159 72 18 - 89 123 213VARIOUS CREDIT CARD LOANS 52 3 - - 54 - 54ALVEO LAND CORP - 189 - - 189 - 189BPI FOREX - 75 - - 75 - 75GLOBAL PAYMENTS ASIA-PACIFIC - 45 - - 45 - 45AYALA LAND INTERNATIONAL SALES INC - 12 - - 12 - 12AYALA PROPERTY MANAGEMENT CORP. - 1 - - 1 - 1LAGUNA TECHNOPARK, INC. - 18 - - 18 - 18MAKATI DEVELOPMENT CORPORATION - 159 - - 159 - 159

30,925 13,519 15,000 - 10,622 18,823 29,445


BANK OF THE PHILIPPINE ISLANDSAs of December 31, 2016

Schedule C. Amounts Receivable from Related Parties which are Eliminated during the Consolidation of Financial Statements. (in Millions of Pesos)Schedule C. Amounts Receivable from Related Parties which are Eliminated during the Consolidation of Financial Statements.

Name and Designation of debtor

Balance atbeginning of

period AdditionsAmountsCollected

Amounts written-off Current Not Current

Balance at end ofperiod

BANK OF THE PHILIPPINE ISLANDS 11 - 7 - 4 - 4BPI CAPITAL CORP. 3 9 4 - 8 - 8BPI CENTURY TOKYO LEASE AND FINANCE CORP. 6 1 - - 7 - 7BPI CENTURY TOKYO RENTAL CORP. 7 - 3 - 4 - 4BPI DIRECT SAVINGS BANK, INC. 1 - 1 - - - -BPI FAMILY SAVINGS BANK, INC. 217 - 138 - 79 - 79BPI INVESTMENT MANAGEMENT INC. 3 6 - - 9 - 9BPI SECURITIES CORP. 2 8 - - 10 - 10AYALA PLANS 2 - - - 2 - 2

252 24 153 - 123 - 123

BANK OF THE PHILIPPINE ISLANDSAs of December 31, 2016(in Millions of Pesos)

Schedule D. Intangible Assets (in Millions of Pesos)

BANK OF THE PHILIPPINE ISLANDSDecember 31, 2016(In Millions of Pesos)

Schedule D - Intangible Assets

Description

Beginningbalance (net ofallowance forimpairment)

Additionsat cost

Charged tocost andexpenses

Chargedto otheraccounts

Otherchangesadditions

(deductions)

Ending balance(net of

allowance forimpairment)

Contractual customerrelationship

1,458 - 278 - - 1,180

Others 364 925 407 - - 882

Total 1,822 925 685 - - 2,062

Schedule E. Long-term Debt (in Millions of Pesos)

BANK OF THE PHILIPPINE ISLANDSDecember 31, 2016

Schedule E - Long-term Debt

Title of issue andtype of obligation

Amount authorized byindenture

Amount shownunder caption

“Current portionof long-term debt”in related balance

sheet

Amount shown undercaption “Long-termdebt” in relatedbalance sheet

Nothing to report.

Schedule F. Indebtedness to Related Parties (Long-Term Loans from Related Companies) (in Millions of Pesos)


Schedule F - Indebtedness to Related Parties (Long-Term Loans from RelatedCompanies)

Name of related party Balance at beginning of period Balance at end of periodNothing to report.

Schedule G. Guarantees of Securities of Other Issuers (in Millions of Pesos)

BANK OF THE PHILIPPINE ISLANDS

December 31, 2016

Schedule G - Guarantees of Securities of Other Issuers

Name of Issuing entity ofsecurities guaranteed bythe company for whichthis statement is filed

Title of issue of eachclass of securities

guaranteed

Total amountguaranteed andoutstanding

Amount ownedby person for

which statementis filed

Nature ofguarantee

Nothing to report.

Schedule H. Capital Stock (in Millions of Pesos)

* Shares granted but not yet exercised


Schedule H - Capital Stock

Title of Issue

Number ofShares

Authorized

Number ofshares issuedand outstandingas shown underrelated balancesheet caption

Number ofshares

reserved foroptions,warrants,conversionand otherrights *

Number ofshares heldby relatedparties

Directors,officersand

employees OthersCommon Shares 4,900,000,000 3,937,043,603 9,100,000 2,038,075,111 22,598,211 1,876,370,281Preferred A Shares 60,000,000 - - - -

* Shares granted but not yet exercised


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