Bank of the Philippine IslandsRecord Date

February 20, 1998 PSE CIRCULAR FOR BROKERS NO. 178-98 SUBJECT : Bank of the Philippine Islands Record Date Further to Dividend Notice 211, series of 1997, Bank of the Philippine Islands ("BPI") informed the Exchange in its letter dated February 18, 1998 that the Bangko Sentral ng Pilipinas ("BSP") has approved the cash dividend declaration by the Board of Directors of BPI on November 19, 1997 of P0.80 per share to stockholders of record as of March 5, 1998, payable on March 20, 1998. LLpr Attached is the BSP letter dated February 17, 1998 to BPI. For your information. (SGD.) MARIA ISABEL T. GARCIA Head, Listings & Disclosures Group Cash Dividend Update: Cash P0.80 per share Record Date March 5, 1998 Ex-Cash February 27, 1998 Date Payable March 20, 1998 DEPARTMENT OF COMMERCIAL BANKS I February 17, 1998 Mr. Xavier P. Loinaz President BANK OF THE PHILIPPINE ISLANDS BPI Building Ayala Avenue corner Paseo de Roxas Makati City 0720 Dear Mr. Loinaz: This refers to your letter dated November 19, 1997 relative to the approval by the Bank's Board of Directors on the same date of the declaration of a cash dividend of P0.80 per share payable to holders of the 620,376,183 outstanding Common shares of the Bank's capital stock. We interpose no objection to the dividend declaration provided the following conditions are met: dctai 1. The Bank shall comply with the requirements on legal reserves/liquidity cover under BSP Circular No. 1354 dated September 11, 1992, as amended by BSP Circular No. 18 dated March 23, 1994, as follows: a. The Bank shall have sufficient legal reserves for deposits and deposit substitutes; and liquidity cover for government funds as of the time it sought BSP approval of the declaration of dividends; and b. The Bank shall not have incurred any weekly deficiency in its required legal reserves for deposit and deposit substitutes; any deficiency in its liquidity floor for government funds during the last two (2) months immediately preceding the date of request for approval of declaration of dividends up to dividend payment date. 2. The Bank shall have no deficiency in the required foreign currency cover; 3. The Bank shall have complied with all the foregoing requirements before the actual payment of herein cash dividends; and 4. The record date for such dividends shall not be set earlier than thirty (30) days after declaration, as required under BSP Circular No. 18 dated March 23, 1994. Very truly yours, (SGD.) ANDRES I. RUSTIA Director