PSE Circular for Brokers No. 1815-98

August 3, 1998 PSE CIRCULAR FOR BROKERS NO. 1815-98 July 31, 1998 PHILIPPINE STOCK EXCHANGE Exchange Road, Ortigas Center Pasig, Metro Manila We are in receipt of your faxed letter to us dated July 31, 1998 which we received late this afternoon. In reply to your aforesaid letter, please note that the items/figures cited in the news article are fair and accurate as borne by our submitted reports to the Bangko Sentral ng Pilipinas and the Securities and Exchange Commission. For clarification, please refer to the table of computations herewith. We hope that this clarification will be interpreted in good light by your office. Thank you for your understanding. Very truly yours, (SGD.) FE B. MACALINO First Vice President/ General Counsel and Corporate Secretary UNIONBANK OF THE PHILS CONSOLIDATED BALANCE SHEET ASSETS AS OF JUN 30 '98 AS OF JUN 30 '97 GROWTH RATE CASH ON HAND 329,635,616 239,551,934 37.61% CHECKS AND OTHER CASH ITEMS 53,334,753 29,975,758 77.93% DUE FROM CB OF THE PHILS 673,833,913 959,523,730 -30.50% DUE FROM OTHER BANKS 3,190,762,173 2,672,737,479 19.38% LOANS & DISCOUNTS-NET 23,676,792,215 23,906,295,628 -0.96% BILLS PURCHASED 2,640,835,879 5,474,968,405 -51.77% CUSTOMER'S LIABILITY IN DRAFTS UNDER LC/TR (NE 910,263,946 476,713,276 90.95% CUSTOMER'S LIABILITY FOR THIS BANK'S ACCEPTANCES OUTSTANDING 58,473,924 156,497,948 -62.64% TRADING ACCT SECURITIES 1,197,703,080 1,699,774,477 -29.54% INVESTMENT IN BONDS & OTHER DEBT INSTRUMENT 7,115,638,022 3,373,460,106 110.93% EQUITY INVESTMENTS 369,578,476 291,225,062 26.90% BANK PREMISES, FURNITURE, FIXTURES & EQPT 797,516,814 764,176,148 4.36% POPOA 1,072,080,227 723,844,109 48.11% OTHER ASSET NET 2,754,633,138 2,258,759,511 21.95% TOTAL ASSETS 44,841,082,178 43,037,503,571 4.19% LIABILITIES AND CAPITAL ACCOUNTS LIABILITIES DEPOSIT LIABILITIES 24,047,283,805 21,004,871,081 14.48% BILLS PAYABLE 4,465,010,702 6,893,583,525 -35.23% OTHER LIABILITIES 6,907,675,730 8,221,958,747 -15.99% TOTAL LIABILITIES 35,419,970,237 36,120,413,353 -1.94% CAPITAL ACCOUNTS CAPITAL STOCKS 5,260,523,600 4,416,578,000 19.11% SURPLUS 3,396,443,819 1,867,162,523 81.90% SURPLUS RESERVES 39,517,632 31,385,609 25.91% UNDIVIDED PROFITS 724,626,890 601,964,086 20.38% TOTAL CAPITAL ACCOUNTS 9,421,111,941 6,917,090,218 36.20% TOTAL LIABILITIES & CAPITAL ACCOUNTS 44,841,082,178 43,037,503,571 4.19% NOTE: OTHER ONE CAPITAL RATIO IS 24.5%, PER REPORT SUBMITTED TO BSP UNIONBANK OF THE PHILS STATEMENT OF INCOME & EXPENSE REVENUES: 1ST HALF 1998 1ST HALF 1997 GROWTH RATE INTEREST INCOME 2,688,559,482 1,829,917,960.00 46.92% SERVICE CHARGES, FEES & COMMISSIONS 136,468,056 98,317,303.00 38.80% DIVIDEND EQUITY INVESTMENT 900 825.00 9.09% EQUITY IN EARNINGS OF SUBSIDIARIES 25,648,312 17,956,919.00 42.83% TRADING GAIN(LOSS) & FOREIGN EXCHANGE PROFIT 209,687,680 133,039,352.00 57.61% OTHER INCOME 177,156,448 177,043,788.00 0.06% TOTAL REVENUES 3,237,520,878 2,256,276,147.00 43.49% EXPENSES: INTEREST EXPENSES 1,118,906,509 797,078,425.00 40.38% OVERHEAD EXPENSES 834,226,173 719,480,062.00 15.95% TOTAL EXPENSES 1,953,132,682 1,516,558,487.00 28.79% NET INCOME (LOSS) BEFORE PROVISION FOR PROBABLE LOSSES & PROVISION FOR INCOME TAXES 1,284,388,196 739,717,660.00 73.63% LESS: PROVISION FOR PROBABLE LOSSES 368,954,542 30,000,000.00 1129.85% NET INCOME/(LOSS) BEFORE PROVISION FOR INCOME TAX 913,433,684 709,717,660.00 28.99% LESS: PROVISION FOR INCOME TAXES 190,806,764 107,753,574.00 77.08% NET INCOME/(LOSS) 724,626,890 601,964,086.00 20.38% NOTE REVENUE NET OF LOAN LOSS PROVISIONS 1,749,659,627 1,429,187,722 22.42% REVENUE/EXPENSE RATIO 2.32 2.12 9.59%