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BANK OF THE PHILIPPINE ISLANDS CONSOLIDATED STATEMENTS OF FINANCIAL PERFORMANCE-HORIZONTAL ANALYSIS

For the Years 2009 and 2010

(In Millions)

ASSETS TOTAL CASH AND SHORT TERM INVESTMENTS TOTAL RECEIVABLES TOTAL CURRENT ASSETS NET PROPERTY PLANT AND EQUIPMENT Deferred Tax Assets, Long Term Deferred Charges, Long Term Other Long-Term Assets TOTAL ASSETS

2009 130,831 44,143.0 195,055 12,570.0 4,872.0 344.0 15,753.0 724,420

2010 179,418 56,029.0 254,520 13,077.0 5,023.0 820.0 17,106.0 878,146

Increase(Decrease) Amount 48,587 11,886.0 59,465.0 507.0 151.0 476.0 1,353.0 153,726.0

(%) 37.14 26.93 30.49 4.03 3.10 138.37 8.59 21.22

LIABILITIES & EQUITY TOTAL CURRENT LIABILITIES Long-Term Debt Minority Interest Pension & Other Post-Retirement Benefits Other Non-Current Liabilities TOTAL LIABILITIES Common Stock Additional Paid in Capital Retained Earnings Comprehensive Income and Other TOTAL COMMON EQUITY TOTAL EQUITY TOTAL LIABILITIES AND EQUITY 606,326 37,009.0 967.0 817.0 12,503.0 656,655 32,467.0 1,412.0 34,375.0 -1,456.0 66,798.0 67,765.0 724,420 752,210 29,868.0 1,244.0 -13,793.0 795,871 35,562.0 8,317.0 36,643.0 509.0 81,031.0 82,275.0 878,146

145,884.0 (7,141.0) 277.0 (817.0) 1,290.0 139,216.0 3,095.0 6,905.0 2,268.0 1,965.0 14,233.0 14,510.0 153,726.0

24.06 (19.30) 28.65 (100.00) 10.32 21.20 9.53 489.02 6.60 (134.96) 21.31 21.41 21.22

SHORT TERM SOLVENCY ANALYSIS

As shown in the balance sheet, the percentage increase in total current asset (30.49%) was higher that the percentage increase in current liabilities (24.06%). It can be observed that cash and cash equivalents increased significantly. However, data also shows that the total receivables increase much higher than percentage increase of revenues. This indicates slower collection of receivables to cash. The changes mentioned resulted to the appreciation in the short term solvency position of the company as of the end of year 2010 compared with year 2009. The overall short-term condition of the company as regards to its current assets and current liabilities can be viewed as favorable to the firm.

The bank should maintain and continue to improve its credit standing in order to avoid running out of funds, sustain its credibility, attract investors and established tighter relationship to its shareholders.

LONG TERM FINANCIAL POSITION ANALYSIS

The book value of net property, plant and equipment slightly increased because of the depreciation (6.25%) provision for the year which has a higher rate than the gross property, plant and equipment (5.14%). Total liabilities increased by 21.20% whereas shareholders equity increased by 21.41% thus the companys capital structure shifted slightly away from borrowing and toward capital provided by profitable operations. These changes can be viewed favorably because they indicate strengthening of the long term financial positions by the year end 2010. Overall long term condition of the bank also shows favorable standing for the firm. BPI should concentrate on increasing its shareholders equity while decreasing its total liabilities, particularly long-term liabilities, for it can be tied up to high interest rates in the long run which the bank should avoid.

MARIANO MARCOS STATE UNIVERSITY

COLLEGE OF BUSINESS, ECONOMICS AND ACCOUNTANCY CITY OF BATAC

FINANCIAL STATEMENT ANALYSIS OF BANK OF THE PHILIPPINE ISLANDS


Submitted by Autriz, Janice Cariaga, Thomas Emerson Doroni, Revianne Juan, Peter John Madamba, Meliza Mariano, Reimar Martinez, Hazel Anne Opelac, Diana Ross Silvestre, Jazinda

Submitted to Dr. Leah Ballesteros