HOME DEVELOPMENT MUTUAL FUND

Balance Sheet
As of August 31, 2010
(In Thousand Pesos)

August 2010 2009

ASSETS

Cash and Investments 25,633,324 24,266,913

Multi-purpose Loans, net 47,107,896 47,229,525
Institutional Loans, net 9,998,819 10,084,132
Mortgage/Sales Contract Receivables, net 167,712,147 150,616,927
Items Under Litigation, net 11,761,944 12,314,929
Acquired Assets, net 6,725,305 6,747,872
Property & Equipment, net 1,623,902 1,623,416
Other Assets 7,147,436 3,461,147
TOTAL ASSETS 277,710,773 256,344,861

LIABILITIES AND NET WORTH

LIABILITIES

Current Liabilities and Deferred Credits 27,317,016 27,215,597

Long-term Liabilities 24,431,093 20,316,218
TOTAL LIABILITIES 51,748,109 47,531,815

NET WORTH

Members' Equity 191,122,577 184,369,035

Reserve for losses 158,546 156,444
Retained Earnings,net 34,681,541 24,287,567
NET WORTH 225,962,664 208,813,046
TOTAL LIABILITIES AND NET WORTH 277,710,773 256,344,861
 HOME DEVELOPMENT MUTUAL FUND
Income Statement
For the period ending August 31, 2010
(In Thousand Pesos)

August 2010 2009

INCOME

Housing and Related Loans 9,958,813 12,884,497

Multi Purpose Loans 3,784,606 4,883,874
Fund Management 979,651 2,167,604
Miscellaneous Income 111,496 123,408

TOTAL INCOME 14,834,566 20,059,383

EXPENSES
Operating Expenses 2,929,805 4,546,373
Non Cash (Depreciation) 187,062 227,645
Non Cash (Loan Loss Provision) 207,828 1,678,454
Interest Expense 1,054,853 1,377,805
Acquired Asset Management Costs 20,361 60,204
Foreclosure Expenses 13,713 60,395
Death Benefit 69,437 102,912
Retirement Gratuity - 2,038
TOTAL EXPENSES 4,483,059 8,055,826
NET INCOME 10,351,507 12,003,557
 HOME DEVELOPMENT MUTUAL FUND
FINANCIAL INDICATORS
For the periods Indicated

August 2010 2009

KEY FINANCIAL PERFORMANCE

Total Assets P 277.71 B P 256.34 B
Total Liabilities 51.75 47.53
Total Net Worth 225.96 208.81
Growth Rates
Asset 8.34% 12.72%
Members' Equity 3.66% 11.40%
Ratio
Debt to Equity 22.90% 22.76%

PROFITABILITY MARGINS
Net Income Margin 69.78% 59.84%
Return on Assets 5.82% 4.96%
Return on Equity 7.14% 6.07%
Asset Yield
Return on Investment 5.71% 6.72%
Return on Short Term Loans 11.44% 11.38%
Return on Mortgage/Sales Contract Receivable 7.47% 7.72%
Return on Institutional Loans 7.59% 7.44%