Equitable Banking CorporationCash Dividend Declaration

February 18, 1998 PSE CIRCULAR FOR BROKERS NO. 159-98 SUBJECT : Equitable Banking Corporation Cash Dividend Declaration Equitable Banking Corporation ("EBC") has furnished the Exchange a copy of the Securities and Exchange Commission ("SEC") Form 11-C dated 17 February 1998 wherein it was disclosed that EBC's Board of Directors, in its regular meeting held on even date, approved the declaration of cash dividends at the rate of thirty centavos (P0 . 30) per share and extraordinary or special cash dividend of ten centavos (P0 . 10) per share , or a total of forty centavos (P0 . 40) per share , in favor of stockholders of record as of March 15, 1998 payable on or before April 15, 1998 . For your information. (SGD.) MARIA ISABEL T. GARCIA Head, Listings & Disclosures Group Cash Dividends Cash P0.30 per share Ex-Cash March 10, 1998 Record Date March 15, 1998 Date Payable on or before April 15, 1998 Cash P0.10 per share (extraordinary or special) Ex-Cash March 10, 1998 Record Date March 15, 1998 Date Payable on or before April 15, 1998 SECURITIES AND EXCHANGE COMMISSION SEC FORM 11-C CURRENT REPORT UNDER SECTION 11 OF THE REVISED SECURITIES ACT (RSA) AND RSA RULE 11(a)-1(b)(3) THEREUNDER 1. February 17, 1998 Date of Report (Date of earliest event reported) 2. SEC Identification Number: 5223 3. BIR Tax Identification No. 230-000-453-086 4. EQUITABLE BANKING CORPORATION (EBC) Exact name of registrant as specified in its charter 5. Metro Manila Province, country or other jurisdiction of incorporation 6. (SEC Use Only) Industry Classification Code: 7. 262 Juan Luna Street, 1006 Binondo, Manila Address of principal office Postal Code 8. (632) 242-7101 Registrant's telephone number, including area code 9. Not Applicable Former name or former address, if changed since last report 10. Securities registered pursuant to Sections 4 and 8 of the RSA Title of Each Class Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding Common Shares 316,770,000 11. Indicate the item numbers reported herein: Item 9 In its regular meeting on February 17, 1998, the Board of Directors of EBC approved the following matters: A. Cash Dividends The Board approved the declaration of cash dividends at the rate of thirty centavos (P0.30) per share and extraordinary or special cash dividend of ten centavos (P0.10) per share, or a total of forty centavos (P0.40) per share, in favor of stockholders of record as of March 15, 1998, which shall be payable on or before April 15, 1998. B. Record Date for Purposes of Annual Stockholders' Meeting The Board approved March 7, 1998 as the record date for purposes of determining the stockholders entitled to notice and to vote at the annual meeting of the stockholders to be held on April 21, 1998, 3:00 p.m. at the Coral Terrace, Holiday Inn Manila Pavilion, U.N. Avenue, Manila. C. Amendments to Warrant Instrument The Board approved certain amendments to EBC's Warrant Instrument dated December 6, 1996 (the "Warrant Instrument") which confer upon warrant holders the right to purchase common shares of EBC under terms and conditions stated in said instrument. The salient amendments to the Warrant Instrument are as follows: (a) The warrants may be exercised within a period commencing from the date EBC's shares were listed in the Philippine Stock Exchange, Inc. or PSE (the "IPO Listing Date") until December 31, 2000 (the "new exercise period"). Prior to this amendment, the warrants may be exercised only within a period of one (1) year from the IPO Listing Date. (b) Upon exercise of the warrants, the price at which EBC shares may be purchased (the "exercise price") is the IPO Price. This exercise price will remain constant during the new exercise period. Prior to this amendment, if the warrants were to be exercised for the first nine months (of the old exercise period), the exercise price would have been the IPO Price; however, if the warrants were to be exercised after the ninth to the twelfth month, the exercise price would have been the IPO Price plus a premium of 10% (subject to such adjustments as may be applicable). (c) Warrant holders who do not wish to exercise their rights under the warrants may surrender the warrant certificates to EBC Investments, Inc. (EBCII) within the following dates and shall be paid by EBCII the corresponding amounts per warrant: 4 March 1998 to 3 April 1998 P5.66 16 November 1999 to 31 December 1999 P3.40 16 November 2000 to 31 December 2000 P1.13 Accordingly, the right to subscribe to all exercise shares covered by any and all unexercised warrants shall be deemed to have been transferred to EBCII as of January 1, 2001, and EBCII may exercise the right to subscribe to any and all such exercise shares within 30 days from January 1, 2001. Prior to this amendment, warrant holders who do not intend to exercise their rights under the warrants may surrender the warrant certificates to EBCII who shall pay, with respect to the surrendered warrants, the holders thereof the price equivalent to 5% of the IPO Price per warrant. After the lapse of the original exercise period of one year, EBCII would have the right to subscribe to all exercise shares covered by said unexercised warrants. (d) The other terms and conditions of the Warrant Instrument affected by the foregoing fundamental amendments are or will be revised accordingly. The Board of Directors likewise approved in the same board meeting the listing of the EBC warrants issued under the Warrant Instrument with the PSE.