Philippine National Bank

July 28, 1999 PSE CIRCULAR FOR BROKERS NO. 1873-99 SUBJECT : Philippine National Bank Attached is Philippine National Bank's ("PNB") Revised Projected Statement of Condition and Statement of Income for the year 1999. The decline in projected net income target from P1.0 billion to P250 million was due to the contraction in loan level and higher past due loans. For your information. (SGD.) JOSE LUIS U. YULO, JR. President and CEO PHILIPPINE NATIONAL BANK FORECASTED STATEMENT OF INCOME For the Year Ended December 31, 1999 (in Million Pesos) Original Revised 1999F 1999F Interest Income Loans 14,446 13,891 Investments 3,091 3,105 Due from Banks 384 433 Total Interest Income 17,921 17,429 Interest Expense Deposits 12,786 13,149 Borrowings 709 648 Total Interest Expense 13,495 13,798 Net Interest Income 4,426 3,631 Add: Fee-Based Income 4,740 4,740 Less: Administrative Expenses 7,200 7,200 Net Income Before Tax and Non-recurring Items 1,968 1,171 Less. Provisions for Income Tax 627 613 Net Income/(Loss) Regular 1,339 558 NON-RECURRING ITEMS Sale of Subsidiaries & Other Assets 801 801 Underwriting Fees & Other Related Expenses (149) (149) Provision for Probable Loan and Other Losses (953) (953) Net Income/(Loss) 1,038 257 PHILIPPINE NATIONAL BANK FORECASTED STATEMENT OF CONDITION BANK PROPER As of December 31, 1999 (in Million Pesos) Original Revised 1999F 1999F ASSETS Cash & Other cash items 3,461 2,255 Due from Bangko Sentral ng Pilipinas 5,926 8,847 Due from other banks 5,448 6,245 Interbank loans receivable 3,823 9,516 Investment Securities 33,894 35,464 Receivables from customers (net) 117,072 111,384 Equity Investments (net) 4,365 4,458 Property and equipment (net) 10,399 10,349 Real and other properties owned or acquired (net) 9,815 13,155 Other Resources (net) 19,255 18,715 TOTAL ASSETS 213,458 220,388 LIABILITIES Demand 13,483 14,561 Savings 119,053 113,587 Time 39,006 54,213 Total Deposit Liabilities 171,542 182,361 Bills and Acceptances Payable 10,215 9,050 Due to Bangko Sentral ng Pilipinas 561 377 Margin deposits and cash letters of credit 273 288 Manager's checks and demand drafts outstanding 1,460 1,580 Accrued taxes, interest and other expenses 3,295 4,027 Other Liabilities 3,719 1,863 Total Liabilities 191,065 199,546 CAPITAL FUNDS 22,393 20,842 TOTAL LIABILITIES AND CAPITAL FUNDS 213,458 220,388