2009 Annual Report China Bank

More Than Your Banker,
The Right Partner

2009 Annual Report
ABOUT THE COVER

For almost ninety years, China Bank has been the right partner for our customers.
The theme of our Annual Report and its cover illustrate thisthat in the big picture
scale of business and finance, its the partnership that counts the most. To both large
corporations and individuals, China Bank has served as enabler of success, catalyst for
wealth creation. Throughout our pioneering origins (as the countrys first privately-owned
commercial bank), heritage of service (that transformed entrepreneurs into industry
chieftains), and spirit for innovation (as the first bank in Asia to process transactions
online), we place our customer at the heart of our business. This is what we mean in
our slogan: Your Success is our Business. We pay tribute to our customers not just
in this Annual Report and financial results but most importantly, in our commitment to
be not just a banker, but the right partner.
TABLE OF CONTENTS
CORPORATE PROFILE
1
China Banking Corporation (China Bank), stock symbol
Financial Highlights
CHIB, commenced business on August 16, 1920 as
Letter to Stockholders
the first privately-owned local commercial bank in the
Operating Highlights
10
Philippines catering initially to the needs of Chinese-
Corporate Social Responsibility
26
Filipino businessmen. It played a key role in post-World
Corporate Governance
28
War II reconstruction and economic recovery through
Board of Directors
38
its support to businesses and entrepreneurs in critical
Management Committee
42
industries. China Bank was listed on the local stock
Vice Presidents
45
exchange in 1947 and acquired its universal banking
Financial Statements
46
license in 1991. The Bank serves the corporate,
Management Directory
120
commercial, middle, and retail markets with a wide range
Branch Network
122
of domestic and international banking services. It is one
Off-Branch ATM Locations
132
of the largest universal banks in the country in terms of
Subsidiaries and Affiliates
136
assets, capital base and market value.
Consumer Banking Centers
138
Private Banking Centers
138
Mission Statement / Core Values
Remittance Affiliates
139
Products and Services
140
Mission Statement / Core Values
MISSION STATEMENT
CORE VALUES
We will be a leading provider of quality

services consistently delivered to institutions,
entrepreneurs and individuals, here and abroad,
to meet their financial needs and exceed rising
expectations.
Integrity
High Performance Standards
Commitment to Quality
Customer Service Focus
Concern For People
Efficiency
Resourcefulness/Initiative
We will be a primary catalyst in the creation of

wealth for our customers, driven by a desire to
help them succeed, through a highly motivated
team of competent and empowered professionals,
guided by in-depth knowledge of their needs and
supported by leading-edge technology.
We will maintain the highest ethical standards,
sense of responsibility and fairness with respect
to our customers, employees, shareholders, and
the communities we serve.
Financial Highlights
05
06
07
08
09
EARNINGS PER SHARE [In Pesos]
05
06
07
08
09
CASH DIVIDENDS PAID [In Million Pesos]

STOCK DIVIDENDS PAID [In Million Pesos]
05
06
07
12.80
11.98
13.49
16.03
25,876
26,735
30,368
23.05
24,982
21,932
173,779
175,687
140,456
155,646
121,628
132,951
102,457
15.36
193,290
208,547
234,035
4,102
3,681
15.57
15.93
15.28
STOCKHOLDERS EQUITY [In Million Pesos]

TOTAL CAR [In Percent]
23.17
TOTAL RESOURCES [In Million Pesos]

TOTAL DEPOSITS [In Million Pesos]
2,917
3,184
3,539
NET INCOME [In Million Pesos]

RETURN ON EQUITY [In Percent]
08
09
DISTRIBUTION NETWORK
BRANCHES
ATMs
380
400
320
1,541
1,541
1,541
300
247
187
148
150
141
215
226
204
1,063
200
886
1,156
249
250
1,233
1,278
1,278
1,479
42.07
29.92
37.75
32.66
36.30
350
100
50
0
05
06
07
08
05
09
06
07
08
09
05
06
07
08
09
LOAN PORTFOLIO BY INDUSTRY CLASSIFICATION

Real Estate, Leasing & Business Services
0.04%
0.25%
Agriculture
0.99%
8.26%
9.10%
17.57%
21.72%
8.04%
8.98%
Manufacturing
Transportation, Storage & Communication
5.22%
Wholesale & Retail Trade

14.65%
2008
2009
9.40%
Financial Intermediaries
13.03%
15.97%
Electricity, Gas & Water
9.88%
14.24%
Construction
15.24%
11.34%
12.58%
Mining & Quarrying

Others
3.50%
CHINA BANK
2009 ANNUAL REPORT
PERFORMANCE HIGHLIGHTS
2007
2008
2009
14,109,453,808
6,496,421,471
2,672,133,489
300,578,001
10,428,018,784
4,994,287,133
3,681,435,024
14,547,926,037
6,524,214,774
2,142,922,269
306,709,527
11,630,738,029
5,177,994,832
2,917,188,008
17,514,336,020
8,236,036,723
4,104,485,158
792,384,146
13,411,706,699
6,947,999,386
4,102,629,321
175,687,170,475
87,328,696,116
140,456,325,304
26,735,041,242
187
249
3,489
208,547,054,007
110,839,234,244
173,779,256,090
25,876,687,638
215
320
3,861
234,035,615,754
110,371,291,557
193,290,039,246
30,368,495,744
247
380
4,150
15.57
2.25
4.32
54.47
41.84
62.17
6.19
88.09
15.12
16.03
11.98
1.53
3.82
59.74
39.55
63.78
5.14
88.06
12.62
13.49
15.36
1.90
4.16
56.30
46.42
57.10
4.16
119.54
11.92
12.80
37.75
1,541,594,125
25
43.56%
3.79%
1,541,666,100
25
660.00
274.18
2.41
29.92
1,541,608,520
20
41.88%
5.06%
1,156,304,300
15
395.00
265.38
1.49
42.07
1,063,721,628
12
36.46%
3.24%
886,530,300
10
370.00
311.44
1.19
For the Year (In Pesos)

Gross Revenues
Net Interest Income
Non-Interest Income
Provision for Impairment & Credit Losses
Gross Expenses
Operating Expenses
Net Income
At Year End (In Pesos)

Total Resources
Loan Portfolio (Net)
Total Deposits
Stockholders Equity Funds
Number of Branches
Number of ATMs
Number of Employees
Key Performance Indicators (In %)

Return on Average Equity
Return on Average Assets
Net Interest Margin
Cost to Income Ratio
Liquid Assets to Total Assets
Loans to Deposit Ratio
Non-Performing Loans Ratio
NPL Cover
Capital Adequacy Ratio (Tier 1)
Capital Adequacy Ratio (Total CAR)
Shareholder Information
Earnings Per Share (In Pesos)
Cash Dividends Paid (In Pesos)
Cash Dividends Per Share (In Pesos)
Cash Payout Ratio (In %)
Cash Dividend Yield (In %)
Stock Dividends Paid (In Pesos)
Stock Dividends Per Share (In %)
Market Value Per Share (In Pesos)
Book Value Per Share (In Pesos)
Price to Book Ratio (x)
CHINA BANK
2009 ANNUAL REPORT
GILBERT U. DEE
HANS T. SY
PETER S. DEE
Chairman of the Board
Vice Chairman of the Board and

Chairman of the Executive Committee
President and
Chief Executive Officer
CHINA BANK
2009 ANNUAL REPORT
China Banks performance in profitability, efficiency

and financial strength continued to be at the forefront
of industry standardsleading to sustained delivery of
superior value and returns to our shareholders.
To Our Stockholders and Friends,

We are pleased to report very good results for
2009, against the backdrop of improving markets but
nevertheless challenging global economic environment.
The global economy was in much better shape in
2009, as seen in the firmer 1.2% expansion for the G7
and fast-developing regions. After several quarters of
weak results, the US economy settled on steadier ground,
providing the financial markets with a clearer indication
of forthcoming policy decisions and actions. The federal
rescue package averted what could have been a freefall
in the financial system, but in the process, set off an
irreversible change in the banking paradigm as evidenced
by tighter regulation and oversight worldwide. Massive
fiscal support left the system flush with liquidity, bringing
bond and borrowing rates down to record lows. Market
confidence recovered in step with the beginnings of an
economic rebound, led by East Asia where China and
India grew by 8.4% and 6.0%, respectively, on the back
of heavy public spending and consumer demand.
The Philippines was spared the worst effects of
the US financial meltdown as the 5.6% growth of OFW
remittances, lower export dependency and a highly
CHINA BANK
supportive monetary and fiscal policy cushioned the

impact of the crisis. GDP growth of 0.9% was among the
few in positive territory though below the regional average,
reflecting the devastation brought by Typhoons Ondoy and
Pepeng upon agricultural production as well as lackluster
spending by both households and investors. Headline
inflation inched up to 3.2%, as food prices were pushed up
by these twin calamities and predictions of another El Nio
weather phenomenon.
It was a turn-around year for the financial industry, with
profits rebounding from their very low base in the previous
year. The repercussions of the global crisis continued to be
felt in the first half of the year, both from its direct effects
as well as the impact of the policy responses from both
fiscal and monetary authorities. The monetary response
in terms of liquidity boost and lower interest rates pushed
down government securities yields to record low levels
at the shorter maturities, while concerns about the fiscal
deficits incurred for the stimulus programs to counter the
recessionary impact of the crisis prevented yields on the
longer maturities from going downa classic yield curve
steepening effect. Greater confidence in the emerging
markets reduced risk premiums to more affordable levels
and triggered a rebound in ROP prices.
2009 ANNUAL REPORT
HENRY SY, SR.

HE
Honorary Chairman and Advisor to the Board
Hon
In addition, the year 2009 saw industry loans growth

relatively flat as the capital markets absorbed the corporate
bond issuances (volume totaling P412 billion in 2009) that
would otherwise have landed on the banking systems
loan books. As always, capital strength remained the
definitive test of financial stability as well as the basis of
the governments regulatory and policy framework for the
banking sector. With the monetary authorities and market
players armed with the lessons from the Asian financial
crisis a dozen years back, Philippine banks emerged
stronger from this recent crisis judging from their higher
Tier 1 capital base, and average consolidated capital
adequacy ratio (CAR) and return on equity of 15.76% (as
of September 2009) and 10.79% (as of December 2009),
respectively.
Even as the banking industry proved more resilient
than ever in the face of the global crisis, we are very
pleased to report that China Banks performance across
key performance indicators in profitability, efficiency
and financial strength continued to be at the forefront
of industry standardsleading to sustained delivery of
superior value and returns to our shareholders.
Consolidated net income improved markedly to
P4.102 billion, an increase of 41% from the previous
CHINA BANK
years P2.917 billion. China Bank continued to be ranked

among the most profitable banks in the country with
a return on equity (ROE) of 15.36% and a return on
assets (ROA) of 1.90%. At the risk of being immodest,
this is somewhat remarkable considering that we are in
the midst of our most rapid network expansion in our
89-year history that entails massive investments and
capital expenditures.
Revenue growth was driven by better than expected
corporate and retail loan volume even as loans growth
slowed down towards the end of the year and interest
rates hit record lows. Non-interest income grew as well,
from solid trading gains, and substantial contributions
from fee-based businesses such as bancassurance,
private banking, cash management services, foreign
exchange, trust and other fee-based services.
We sustained our good net interest margins by
maximizing yields on interest accruing assets while
focusing on low-cost deposit generation to bring down
the average cost of funds. The rise in interest revenues
was attributed to the enhancement in the mix of our
investment securities holdings, participation in more
fixed-rate syndicated term loans and build up of higher
margin in consumer and retail portfolio. Underpinning
2009 ANNUAL REPORT
Letter to Stocholders
China Bank was cited by Stern, Stewart & Co. as one

of the top 100 listed companies in ASEAN in terms of
delivering shareholder value.
our funding strategy was our renewed focus on building

Checking Account/Savings Account (CASA) relationships
through
cash
management
offerings,
broader
compensating businesses as well as expansion of the
branch footprint. Hence, CASA base rose by 17.43%
from 2008 on average daily balance basis and 26.76%
from year-end 2008.
Again despite the rapid branch expansion, prudent
cost management led to further improvements in costefficiency, with our cost to income ratio of 56.30%
compared to 59.74% of the previous year.
Assets also grew by P25.49 billion to an all time
high of P234.04 billion, mainly from the growth in loans,
investment securities and short-term placements.
Management prioritized quality over expansion of
portfolio as seen in the moderate loans growth of 10%
on an average daily balance basismainly from robust
demand in the corporate and consumer sectors. But yearon-year, outstanding gross loans (inclusive of unquoted
debt securities) fell by 0.36% to P118.4 billion as we
vigorously pursued collection of past due accounts and
improved collateral positions. Intensive monitoring at the
Management and Board level led to a reduction in nonperforming loans (NPL) by almost P1.5 billion, lowering
CHINA BANK
the NPL ratio to 4.16% from 5.14% last year. Loan loss
coverage, or the ratio of reserves to non-performing
loans, improved further from 88.06% to 119.54%.
China Banks financial position remains as strong as
ever with total capital funds of P30.37 billion that translate
to a tier 1 CAR of 11.92% and total CAR of 12.80%. Our
consistent profit streams and equity build-up merited an
affirmation of our long term grade of BB+ from Fitch
Ratings and a financial strength rating of AA- on the
National credit rating scale.
In a significant market shift, the uptrend in corporate
bond issuances tempered the growth in traditional
wholesale lending so we ramped up our participation in
the underwriting of bonds issued by triple-A corporations
such as San Miguel Corporation, Petron, JG Summit
Holdings Inc. Part of the proceeds from accessing the
capital markets were used to pay down bank loans,
reflecting a double whammy effect on bank lending books
from the disintermediation phenomenon. It was indeed
becoming a borrowers market with serious implications
for calculations of whether financial institutions are
obtaining adequate rewards for the credit risks being
undertaken. This also led to a renewed focus on the role
of fee-based businesses in revenue diversification.
2009 ANNUAL REPORT
The program to put in place a dramatically larger

geographic footprint continued apace in 2009. We
inaugurated 32 new branchesfive for ChinaBank
Savings, Inc. (ChinaBank Savings), the savings bank
subsidiary, and twenty-seven for the bank proper
bringing our total network to 247 by year-end 2009. The
growth in the combined branch network boosted low cost
CASA deposit base by 17.43% to a record P58.85 billion.
Supplementing the branch expansion is the growth in
the ATM network from 320 to 374 installations, offering
clients more convenience even outside of regular banking
hours. The BancNet consortium consistently ranks China
Bank as among their top ATMs in terms of earnings, online availability and transaction volume. The rapid growth
in activation and usage of the other electronic channels
China Bank Online Internet and mobile bankingshowed
positive customer response to the provision of a seamless
customer experience across channels.
shareholder value for the period 2002-2008. China Bank

was one of only 11 Philippine companies and one of two
Philippine banks to be included in the ASEAN Relative
Wealth Index. Even at the height of the subprime crisis
when stock indices plunged, our share price was among
those that dropped the least and maintained substantial
levels of cash and stock dividends payments.
The Bank was also cited by the Bureau of Treasury
as one of Ten Best Performing Government Securities
Eligible Dealers (GSED), ranked 6th place over-all (primary
and secondary markets) and 5th place in the secondary
market. We were recognized for our exemplary effort and
contributions in money market and capital development
as well as support of the governments efforts to ensure
funding for continued economic growth. China Bank was
likewise recognized by IFR Asia and The Asset Magazine
for being one of the joint lead underwriters of the P38.8
billion San Miguel Brewery (SMB) Bonds issue, awarded
As we celebrate China Banks 90th year of service in

2010, we will continue our efforts to be the best bank for
our customers.
The acquisition of Manila Bank with its 75 branch

licenses presented a couple of strategic opportunities.
One, it fast tracked the Banks branch expansion program
to a higher trajectory from 200 to 300 branches. As the
incremental business contribution of the bigger network
was kicking into place, the network size was upgraded
to 400 branches. Two, ChinaBank Savings provides the
platform for a sharper focus on the retail/consumer market
and serves as the Banks laboratory for new products
and services and marketing approaches. Third, ChinaBank
Savings could also serve as a hothouse for developing
cutting-edge and competitively-priced products for the
household, small business and younger segments that
capitalize on its lower reserve requirements and slimmer
cost structure.
With our sustained profitability and delivery of
superior shareholder returns, China Bank was recognized
internationallywe were cited by US-based management
consulting firm Stern, Stewart & Company as one of the
top 100 listed companies in ASEAN in terms of delivering
CHINA BANK
by IFR Asia as the Domestic Bond Deal of the Year

Philippine Capital Markets and by The Asset as the Best
Local Currency Bond in the whole Asian region.
As we embark on our new 5-year business plan for
2010-2014, we will continue to pursue the core strategies
contained in the previous 3-year plans. The centerpiece
of the plan is of course, the full implementation of the
most rapid network expansion in China Banks 89-year
historyboth for China Bank and ChinaBank Savings. In
line with our commitment to become the best bank for
our customers and their primary banker, we established a
five-year roadmap for service excellence which begins by
building a customer-centric organization from the ground
up. Customer focus involves developing expertise in
selected market segments, mechanisms for monitoring
quality of services and measuring client data as well as the
redesign of processes around the customer. Our objective
is to offer clients a highly personalized and professional
banking experience, raising client retention rates and
deepening the scope and scale of account relationships.
2009 ANNUAL REPORT
Meanwhile, China Banks innovation initiatives will

be driven by two major considerationsone, the ability
to meet customers needs and expectations thru the full
range of products and services in a highly responsive
and cost-effective way and two, to put in place a
highly robust set of platforms to enable the handling
of accelerated growth in transaction volumes from the
various businesses. Apart from the substantial capital
expenditures allotted for the branch expansion, about half
of the capital expenditure budget for 2010 will be invested
in key infrastructure projects such as the acquisition of a
new core banking system, asset-liability system (ALM),
ATM/card management system, a new phone banking/
call center software, servers upgrade and enhancements
to our cash management platform to include supply
chain functionalities. In addition, the year will also see
the continued implementation of ongoing projects
such as the Reuters platform for the Treasury system,
business intelligence/customer relationship module, new
remittance system and full roll out of the browser-based
tellering system for China Bank and ChinaBank Savings.
In recording various accomplishments and achieving
significant milestones, we are humbled by the loyal and
enduring support of our customers in the various markets
we servecorporate, consumer and traditional FilipinoChinese markets. In keeping with our roots as a bank
for businessmen, we have kept alive an entrepreneurial
spirit tempered by our innate conservatism, fully aware
that the China Bank ethos is as relevant today, perhaps
even more so, as it was in the past. But we must work
harder to keep in step with the rapidly changing needs
of our customers and continually enhance the value of
their banking relationship. Only then can we justly claim
to be their right banking partner by our understanding of
their unique needs and helping them resolve day-to-day
business issues.
In the last quarter of 2009, we launched a

corporate advertising campaign anchored on this spirit
of partnership. It reflects a timeless message, of China
Bank as the bank for businessmenthat we are not only
their banker, but their Right partner for success.
The task of steering the Bank across a sea of
economic, financial and socio-political variables will
continue to occupy your Board Members and Management
in the coming periods. But the view from our boardroom
is an exciting onefilled with opportunities to do even
better in our core and new businesses, push our people
to achieve their full potential as ChinaBankers and further
contribute to the success of our clients and partners in
the industry. We will draw on our solid franchise and
experience to help customers build and protect their
financial position, maintain more than adequate capital
and liquidity levels and make bold yet prudent business
decisions.
As we celebrate China Banks 90th year of service
in 2010, the current decade is a significant last leg before
the Banks centenary. We will continue our efforts to
be the best bank for our customers. The timelessness
of China Banks Mission Statement continues to apply,
that we will be a primary catalyst for the creation of
wealth for our customers, driven by a desire to help them
succeed, through a highly motivated team of competent
and empowered professionals, guided by in-depth
knowledge of their needs and supported by leadingedge technology.
It is only through the successful implementation
of this missionand lived out thru the daily actions of
all ChinaBankers that China Bank can remain a key
player in the industry, growing to meet and exceed our
customers expectations, continuing to be a catalyst for
their success, and in the process, delivering superior
returns to our shareholders.
GILBERT U. DEE
HANS T. SY
PETER S. DEE

President and CEO
CHINA BANK
2009 ANNUAL REPORT
Building Relationships, Sustaining Partnerships

Over the last 89 years, China Bank has been growing, improving, evolvingin the quality of
our performance, capabilities, banking services, management expertise, and technology.
Our steadfast commitment to be more than our customers banker, but their right partner
for the long term, constantly drives us to change for the better, while remaining deeply
rooted to our heritage of strength and stability.
CHINA BANK
10
2009 ANNUAL REPORT
2009 has been an extraordinary year and we are

proud and pleased to have emerged from the worst
of the global financial crisis in very good shape to face
challenges and take advantage of new opportunities.
Our different business groups, our partners in building
relationships and sustaining partnerships in the markets
where we operate, have also been evolving through
the years as our business activities and volumes
progressively increase. Their steady focus on meeting
the needs of our customers and ensuring that we are
delivering the standard of service to which our customers
have grown accustomed and deserve, paves the way
for a sustainable path of value creation, thus further
improving our reputation and boosting shareholder and
customer value.
Branch Banking
Our network expansion, spearheaded by Branch
Banking Group (BBG), remains robust as we expand
CHINA BANK
our geographic footprint to build more customer

relationships. While focusing on our existing markets,
we also target appropriate regional expansion as a
driver of continued growth. In 2009, BBG opened
32 branches27 for the main bank and fi ve for
ChinaBank Savings, bringing our nationwide branch
network to 247 at year-end. As new branches
were opened, existing branches were renovated or
relocated to new and better sitesfour branches
were transferred to bigger and better locations, and
another two were renovated to match the Banks
signature branch design.
Our branches remain at the forefront of low-cost
deposit generation and overall funding growth in 2009.
Checking Account/Savings Account (CASA) deposits
continued to build up, growing by 27% to P59 billion. As
a result, China Bank, with a healthy CASA to total peso
deposits ratio of 42%, has one of the best net interest
margins in the industry. Beyond CASA, the branches
11
2009 ANNUAL REPORT
China Bank is in the midst of the most rapid

expansion in its history, with the branch network
for the group targeted to grow to 400 branches in
5 years.
are the key distribution channels for our products and

services, growing the Banks loan balances, increasing
net income and adding to the demographic diversity of
our client base.
BBGs top priority in 2009, aside from expansion,
was to prime our branch network for higher productivity.
One of BBGs major initiatives, the Branch Transformation
Project (BTP), launched in the fourth quarter, aims to
streamline branch processes to transform China Bank into
a customer-centric organization. Other re-engineering
initiatives were also carried out to standardize and
improve branch operations and centralize backroom
operations.
BBGs continuing efforts to keep branch personnel
motivated through regular area-level meetings, pep
rallies, incentive schemes, the Annual Sales Convention
and Awards Night, and year-round training programs,
especially on good customer service, ensure that our
frontliners have the skills and the mindset to be the right
banking partners for our customers.
For 2010, BBG will continue its strategy of investing
in additional branches, talent, resources and capabilities
to enhance our branches ability to execute China Banks
value proposition. Thirty more branches will be opened in
Metro Manila and the provinces to extend our reach and
visibility in new markets, bringing us closer to our goal
of growing to 400-strong by 2014. While our branches
remain as the primary customer touch point, we also
continue to develop alternative delivery channels to meet
customer expectations, such as strategically-located
ATMs, improved online and mobile banking channels and
better customer support.
CHINA BANK
Multi-channel Banking
At China Bank, we are committed to build and sustain
strong relationships with our customers by being
accessible and offering solutions that are relevant to
them and responsive to their needs. Our customers have
access to a full array of banking products and services, not
just through our branches, but also via our ATMs as well
as telephone banking, internet banking and mobile banking
channels, 24/7, wherever they may be. As our customers
increasingly conduct their banking electronically, growing
these relationships is more important than ever. Our
ATM Center and E-Banking Unit continue to enhance our
electronic banking channels to add useful features while
enhancing customer friendliness.
The ATM network was beefed up with the deployment
of 56 new ATMs in 200927 of which were installed in
high traffic off-branch locations such as malls, schools and
MRT stationsbringing the nationwide ATM network size
to 374 at year end (380, including ChinaBank Savings). Our
ATM cardholder base grew by 14% to over 670,000.
The year saw the launch of China Bank Smart Money
Card, a cash card developed in partnership with Smart
Communications, Inc. and China Banks Remittance
Banking Division. With the China Bank Smart Money
Card, remittances from our partner banks and remittance
agencies abroad can be electronically loaded in the Card
and may be withdrawn from any ATM in the Philippines.
The Card can also be used to purchase at stores and
supermarkets all over the country with BancNet Point-ofSale (POS) terminals.
Aside from the continuous deployment of ATMs in
strategic locations, ATM Center is undertaking a number
12
2009 ANNUAL REPORT
of major projects to boost our capability to efficiently

service the growing volumes in 2010. These new
initiatives include the standardization of ATM hardware
and software configuration; implementation of Cenbank
System 2000 for the centralization of ATM vault control
access; implementation of ECM (Enterprise Content
Management); automation to capture, store, preserve
and deliver content and documents; and upgrade to webenabled screens for bills payment transactions. As our
expanded operations call for a more robust technology
platform, ATM Center will also be thoroughly evaluating
the right ATM vendor, ATM Switch and IVRS vendor
to partner with for our new hardware and software
acquisitions.
The E-Banking Unit embarked on a year-round
program in 2009 to beef-up enrollment in our proprietary
internet and mobile banking facility, China Bank Online. A
number of internal and external raffle and instant rewards
promos like Pay Online, Win Big Time and Click, Save &
Win were launched to create awareness and encourage
enrollment. The training programs for employees were
also intensified to include sessions on the features and
benefits of the powerful e-banking channel. As a result,
enrollment in China Bank Online increased by 33% and
online transactions grew by 37%.
For 2010, our E-Banking Unit will sustain the
momentum of the successful enrollment campaigns with
more aggressive efforts and bigger and better rewards
and raffle promos. Underway is a computer upgrade
program in partnership with Asus Philippines, a branch
incentive program, a nationwide rewards program for
China Bank branches, and an enhanced training program
for frontline employees and China Bank Online users with
the development of an interactive tutorial and financial
calculator to be made available in the China Bank website,
DVD (to be used as sales and training tool), and internal
e-mail system.
Corporate / Institutional Banking

Corporate Banking plays an important role in the growth
of our financing activities and profitability. Our Account
Management Group (AMG) manages this core business
and major source of revenue with its relationship-focused
approach to handling the banking and financing needs of
our corporate customers.
In 2009, AMG maintained a cautious approach
in booking new loans, focusing instead on deepening
existing relationships, increasing the utilization rate of
approved credit facilities, reducing large exposures to a
CHINA BANK
single corporate borrower to mitigate the concentration

of risk, and diversifying our corporate portfolio across
various sectors and industries that have growth potential
or continue to show resilience. Amidst tighter controls
and stricter credit standards, AMGs gross portfolio
still grew 7% to P69 billion. Further improvements in
loan portfolio asset quality were achieved, with a P596
million reduction in past due leading to a corresponding
drop in the NPL ratio.
China Bank was active in the Capital Markets
through its participation in several landmark deals such
as the P38.8B San Miguel Brewery (SMB) Bonds issue,
in which China Bank acted as joi nt lead managercited
by IFR Asia as the Domestic Bond Deal of the Year Philippine Capital Markets and by The Asset as the Best
Local Currency Bond in the whole Asian region in 2009
and other major deals involving large corporations like
PLDT, Petron Corp., Globe Telecoms, SM Investments,
Robinsons Land Corp., JG Summit Holdings, Metrobank
Card Corp., City Savings, Meralco, and Metro Pacific,
to name a few. AMG also actively participated in the
Specialized Lending Programs offered by the Development
Bank of the Philippines (DBP) and the Land Bank of the
Philippines (LBP) and other funding agencies, increasing
its credit line with these institutions and also availed of
the BSP rediscounting facility for qualified customers.
To develop business from existing corporate
customers suppliers and vendors, AMG set up a
Factoring Unit manned by a dedicated team of banking
specialists. Simply put, factoring is the purchasing of
accounts receivable invoices at a discounted price for
immediate cash flow. Factoring enables a business to
have immediate access up to 95% of the face value
of accounts receivable invoices. AMG provides three
critical components of service with its full-service
accounts receivable factoring: Finance, Credit Services,
and Receivables Management.
For 2010, AMGs focus is on growing the portfolio
and improving the industry-diversification mix. Asset
quality improvement continues to be a key priority thru
strengthening relationships and building on the base of
high quality customers.
Consumer Lending
Consumer financing is vital to relationship-building at
China Bank. We make it a point to be our customers
right partner in consumer loans by providing them with
superior home and auto loan packages that are convenient
and affordable. Competition in consumer financing has
13
2009 ANNUAL REPORT
The China Bank Groups approach to the consumer

lending market is being driven by two major business
unitsthe Consumer Banking Group (CBG) and
the savings bank arm, China Bank Savings, Inc.
(ChinaBank Savings).
grown tougher. Coupled with the general slowdown in

consumer borrowing in 2009 as Filipinos held back on the
availment of loans, the operating environment proved to
be very challenging. The China Bank Groups approach
to the consumer lending market is being driven by two
major business unitsthe Consumer Banking Group
(CBG) and the savings bank arm, China Bank Savings, Inc.
CBG represents this key area of business and over the
years, CBG has taken prime-mover initiatives to establish
sound business infrastructures, penetrate key market
segments, and build recognizable brand identitiesChina
Bank HomePlus Loan and China Bank AutoPlus Loan
thereby growing our consumer lending operations and
making it one of the pillars of our revenue-generating
system. In 2009, CBG contributed over P473 million to the
Banks bottomline. This amount is 55% more compared
to the pre-provision income CBG posted in 2008.
Maintaining the credit quality of our loan portfolio
remains a vital strategy for CBG. Our consumer loans
past due ratio improved in 20093.95% for AutoPlus
Loans and 5.63% for HomePlus Loans.
In light of the decision to turn over dealer-generated
auto loans to ChinaBank Savings in the third quarter of
2009, CBGs business strategy for the auto loan business
was realigned to maximize sales at the branch and CBG
Center-level, refocusing on branch referred accounts,
internal clients and walk-in customers. CBG also matched
the rates and turn-around times of our competitors.
For the housing loan business, CBG maintained
our competitive position by lowering housing loan
rates in July 2009 to only 8.50% fixed for 1 year, one
CHINA BANK
of the lowest in the industry, improving Mortgage

Repayment Insurance (MRI) coverage limits, establishing
Processing Teams to have better focus and control in
the handling of accounts, and deepening relationships
with top developers for greater access to buyer-loan
applications.
With the key measures being put into place for
faster and more efficient account generation and credit
processing, administration and collection, and sufficient
marketing support to create awareness on HomePlus
and AutoPlus, CBG will be in a better position to grow
our consumer lending business substantially in 2010.
Remittance
Remittance products and services have emerged as
a strategic tool in our relationship-building efforts as
they can lead customers to other China Bank financial
offerings. The Remittance Business Division (RBD),
continues to build-up our remittance business not only as
a means of revenue generation, but also as a gateway to
establishing relationships with overseas Filipino workers
and their families. Our remittance business expanded in
2009 as the overall volume, both in terms of dollar value
and transaction count, increased substantially. Results
confirmed that despite having entered the remittance
foray barely four years ago, China Bank has earned
significant market shares in certain countries where
we have remittance tie-up arrangements, particularly in
the Middle East, where we deployed a marketing team
to promote our remittance products and services thru
three Saudi Banks, all of which rank among the top in
remittance business in the kingdom.
15
2009 ANNUAL REPORT
China Bank is one of the foremost institutions in trust

banking, ranking fifth in the Trust Industry in terms
of assets managed, up two notches from the 2008
ranking.
In 2009, RBD implemented major projects to further

strengthen our remittance services, collectively branded
China Bank On-Time Remittance. A new remittance
product was rolled-out in the first quarter, China Bank
Smart Money Card, available through China Banks partner
banks and money transfer agencies in over 4,000 locations
worldwide. As our global remittance tie-ups expanded, so
did our cash pay-out network in the country. A cash payout agreement was signed with Cebuana Lhuillier, one of
the countrys leading pawnshops and financial services
providers, growing our remittance network of China Bank
branches and partner cash pay-out outlets, including
M. Lhuillier, to close to 3,000 convenient locations in the
Philippines. The year also saw the Phase 1 implementation
of the Carnelian System, automating the crediting of
remittances to beneficiary China Bank deposit accounts.
In line with our customers expectations, we will
continue to improve China Bank On-Time Remittance,
making it a stronger and more competitive remittance
brand in 2010. In the pipeline are a number of strategic
initiatives to build-up the Banks remittance tie-ups
abroad, enhance the features of China Bank On-Time
Remittance, and streamline backroom operations with
the full implementation of the Carnelian System.
Cash Management
China Bank continues to harness technology while
maintaining a personalized approach to banking. Our
Cash Management Services (CMS) adds an innovative
dimension to customer empowerment by providing our
business customers with flexible solutions that speed
up collections, control payments, reconcile accounts,
CHINA BANK
and manage funds more efficiently and securely. In 2009,

CMS focused on enhancing our cash management product
suite to a more robust line up of end-to-end financial tools,
and building up the business to make it one of the drivers
of fee-based income.
Our Cash Management offering provides a
flexible range of collections, liquidity management and
disbursement solutions. Our collection services enable
companies to establish a single banking relationship in
terms of collections, operated through our proprietary
multi-channel payment system and through our
partnership with industry-leading service providers.
Through Corporate E-banking, business customers have
the power to make fast, informed decisions involving their
companys funds and liquid assets. Accurate reports, upto-date account information and bank statements can be
accessed online for a clearly identified cash position at
treasury level. We also provide business customers with
nationwide disbursement solutions and online reporting
tools necessary to efficiently manage payables. Our host
of payment delivery channels offers small companies and
large corporations a complete disbursement infrastructure
that is safe, secure and easy to utilize.
In 2009, CMS redoubled its efforts to increase the
utilization of our cash management offerings. As a result,
the number of business customers enrolled in corporate
e-banking and payroll processing increased by 41% and
27%, respectively. Corporate taxpayers enrolled in China
Bank-BIR eFPS grew by 27%, and the number of companies
enrolled in our Checkwriting facility increased by 55%.
Overall, the number of completed deals improved by 59%
and CMS corporate client base expanded by 27%.
16
2009 ANNUAL REPORT
For 2010, CMS will further strengthen our cash

management offerings thru a Supply Chain Management
Module that will be integrated with our business
customers accounting system and can support
document exchange, processing and reconciliation
between buyers and sellers (purchase orders, invoices,
receipts). CMS will also continue to enhance the value
proposition to boost penetration rates across all cash
management solutions.
Trust Banking
Our Trust Group continues to enhance China Banks
position as one of the foremost institutions in trust
banking, ranking fifth in the Trust Industry in terms
of assets managed, up two notches from the 2008
ranking.
In 2009, total assets under management stood at
P68.3 billion, an increase of 36% over the comparative
2008 figure. On the other hand, the total number of
accounts grew by 19%. This strong performance was
brought about by the Trust Groups major initiatives,
which included the launch of the China Bank Money
Market Fund, its third Unit Investment Trust Fund (UITF),
as well as its active participation in various corporate
bond issues and the Bangko Sentral ng Pilipinas (BSP)
Special Deposit Account (SDA) facility under directional
arrangements in behalf of investment management
and/or trust accounts. The Group also worked very
hard to ensure that all products and services are
available to each client, with aggressive marketing
thru branches, thereby expanding its coverage of
branch-originated clients in the process. The Group
also implemented business process and operations
management initiatives to streamline operations as well
as to comply with the BSPs regulatory standards in the
administration of trust, other fiduciary and investment
management activities.
To improve service level standards and keep pace
with technological and regulatory advances, the Trust
automated system was upgraded to a higher version.
This is over and above the enhancements undertaken to
make it compliant with the Financial Reporting Package
for Trust Institutions (FRPTI) as required by the BSP.
Moving forward, our Trust Groups organizational
structure, product offerings and business processes
will evolve and expand in 2010 with the objective of
building stronger relationships with our clients and
adopting industry best practices. Trust desks in key
business centers will be established initially in the
CHINA BANK
Visayas-Mindanao area and new products and services

will be developed to take advantage of opportunities
in foreign currency-denominated trust and Investment
Management Account (IMA) arrangements, Personal
Equity Retirement Accounts (PERA) and Real Estate
Investment Trusts (REITs), among others. Also in the
pipeline is the full implementation of FRPTIcompliant
system, online interfaces, and other enhancements in
the Trust automated system.
The Trust Group will also continue to capitalize on
the Banks expanding branch network to increase market
penetration and boost volumes and shall work closely
with Private Banking Group and other frontline units in
promoting trust products and services. To provide a
broad and diversified range of investment instruments
for its clients, the Trust Group will be an active participant
in corporate bond flotations, loan syndications, private
placements, Tier 2 Notes and equity issues, among
others.
International and Transaction Banking

Our
international
banking,
OFW
remittances,
correspondent banking and transaction banking
operations, have been successfully synergized under
the Centralized Operations Group (COG). The feebased revenue streams of the different products and
services under the Foreign Currency Deposit Units,
the Import and Export departments, the Loans and
Discounts departments, Treasury operations, SWIFT
delivery systems, the Correspondent Banking Unit, and
the Remittance Business Division, are also dynamically
managed by COG in collaboration with these business/
lending groups and the Cash and Trade Management
areas.
China Bank has been offering the full range of
international banking products and services, the complete
variations in inward and outward remittance modes, with
global connections and relationships with practically all
the biggest European, Asian and U.S. banks and leading
international remittance institutions, which in turn, hold
China Bank in the highest esteem and respect because
of our strong credit standing and record as one of the
best performing banks in the country and one of the
most competently managed. We are proud to have been
able to differentiate our Bank by continuously building
up our technological sophistication, officer and staff
competence in handling our customers transactions and
providing expert advisories and solutions for all types of
concerns.
17
2009 ANNUAL REPORT
COG continues to explore new products, systems

and methods, even in co-usage of the proprietary
systems of our global banking partners and remittance
institutions, to give our customers what they want and
need for their own businesses to fl ourish and to provide
our individual customers with utmost convenience.
With higher growth projections for 2010, COG
will continue its automation and system/equipment
upgrade project. COG has several culminating system
developments in the areas of, Treasury, with our
state of the art front, middle and back end seamless
automation; Trade Finance, with the latest upgrade of
the Banktrade system; and Remittance business, with
the implementation of an automated system according
to China Banks stringent customer-driven requirements,
that will definitely increase our processing and transaction
handling efficiencies, enhance our risk evaluating
capabilities, provide immediate critical management
information and further cut down already very closely
monitored operating expenses.
Treasury
As the global economic conditions generally improved in
2009 and investor confidence consequently picked up,
our Treasury Group continued to be a key profit center,
playing the crucial role of not only managing China Banks
liquidity and securing adequate funding to support our
current and future business requisites, but also developing
our treasury business to provide an excellent mix of
treasury products and services to institutional as well as
individual investors. Treasury Groups efficient hedging
of the Banks various exposures to foreign exchange and
profit-grade risks and more active involvement in trading
in 2009, pushed our business volume to grow.
Through the dynamic efforts of our Treasury
Group, China Bank became a major player in the local
fixed income market through active participation in the
corporate bond issues. The Group is also very active
in government debt instruments trading to support the
governments efforts to raise funds to ensure continued
economic growth, acting as one of the selling agents of
the Fixed Rate Bonds issued in September which raised
P114.4 billion for the governments coffers, and as one of
the primary dealers for the US Dollar Bond issuances of
the Republic of the Philippines (ROP) and its agencies.
Treasury Groups continuing efforts in money
market and capital development boosted our ranking
among the Ten Best Performing Government Securities
Eligible Dealers (GSED) in 2009. The Bureau of Treasury
CHINA BANK
recognized China Bank as 6th place over-all (primary

and secondary markets) and 5th place in the secondary
market.
Going forward, our Treasury Group will continue to
focus on efficient asset-liability management to ensure
that we maintain a healthy financial position in 2010
and beyond; as well as on broadening our involvement
in the trading of debt instruments; developing key
partnerships with local, regional and international
financial institutions, particularly in terms of product
sourcing and distribution; and strengthening existing
treasury and market risk systems.
Private Banking
At China Bank, private banking is all about being a partner
in helping our affluent clients achieve their financial and
lifestyle goals, whether it is maximizing investment
potential, wealth management or wealth preservation,
by providing the highest level of personalized service,
customized solutions, and financial advice that
correspond to individual requirements and designed to
keep our clients portfolios in tune with the latest market
developments and opportunities. Our Private Banking
Group (PBG) takes the lead in providing a wide range
of servicesportfolio management, advisory services,
trust services, personalized lending services and
traditional banking. Our open finance approach allows
us to offer outstanding products of other institutions.
Hence, our private banking clients are not limited to
China Bank products; they also have access to the bestin-class products of other institutions.
Our Private Banking business has been steadily
growing over the last three years, fuelled by PBGs
steadfast efforts to acquire new clients and increase
market share, expand product offerings and develop
our strong and dynamic team of seasoned relationship
managers. In 2009, PBG posted a substantial growth
over the previous yearassets under management
increased by 88% to P26 billion, net revenues improved
by 99% to P134 million and income expanded by
168% to P95 millionand developed its network and
capabilities to build stronger relationships. A Private
Banking Center was opened in Quezon City, bringing
the number of PBG centers to seven. These centers
serve as a hub for our expanding wealth management
services in selected areas. PBG also provided
continuous training to officers and staff to enhance their
technical competence and skills to better serve client
requirements. As a complement to the financial side
19
2009 ANNUAL REPORT
of customer care, PBG conducted wealth planning/estate

planning forums and economic briefings in key cities and
provinces to provide our clients with useful tools and
information on investments, taxation, insurance, estate
planning, life planning for after retirement, and more.
As one of our selected growth segments, PBG is
gearing up to be one of the major drivers for fee-based
income. In the pipeline for 2010 is the opening of a center
in Davao to service the high net-worth customers in the
area, and the launching of new products and services.
To support the expansion of the business, additional
Relationship Managers will be hired and employee skills
will be further developed through training programs.
Furthermore, PBGs wealth planning forums will continue
to be a staple value-added service to clients.
Non-Life Insurance
We offer a wide range of non-life insurance products and
services though our subsidiary, China Bank Insurance
Brokers, Inc. (CIBI), a full service insurance brokerage
agency. CIBIs industry-leading service, access to the
best non-life insurance agencies and superior products
and services, strengthen China Banks promise to be the
right partner, not just in banking, but also in insurance.
2009 was a banner year for CIBI. The company
posted P42 million in total commissions, slightly higher
than the figure recorded in 2008; and P22.4 million in
net operating income, up 10.3% as operating expenses
decreased. CIBI also transferred to the VGP Center
(formerly Manila Bank Building) along Ayala Avenue in
May 2009. The move to a more spacious office allowed
the company to house its growing manpower in response
to the increasing business volumes generated by both
China Bank-mortgaged and non-China Bank mortgaged
businesses. But what defined CIBIs performance in
2009 was its ability to negotiate with partner insurers to
resolve claims quickly.
In late September 2009, Typhoon Ondoy flooded
almost 80% of Metro Manila, damaging some of the
insured assets of CIBIs clients. There were hundreds
of claims for property and car damage amounting to P80
million. Through CIBIs effective claims management,
95% of the claims were settled before the end of 2009,
while the residual 5% were processed and settled in the
first quarter of 2010.
Moving forward, CIBI is focused on maintaining its
status as one the best-performing insurance brokerage
firms in the country, expanding the business and
enhancing customer value while improving operations
CHINA BANK
to be more efficient and effective to face the challenges

posed by competitors and the business environment in
general.
Life Insurance
China Bank has successfully ventured into allied financial
services to be a one-stop-shop for banking and insurance.
Through Manulife China Bank Life Assurance Corporation
(MCBLife), our bancassurance joint venture with The
Manufacturers Life Insurance Company (Manulife), a
wholly-owned subsidiary of Canada-based Manulife
Financial and one of the leading life Insurance companies
in the world, we offer a full range of innovative insurance
and financial solutions for health, wealth, and education.
Two years since MCBLife rolled out its insurance
solutions at China Bank branches nationwide, it has been
steadily gaining traction. MCBLife posted an annualized
net profit (ANP) of P323 million, contributing to 34% of
combined Manulife Groups ANP. For China Bank, the
bancassurance venture generated over P30 million in fee
income, a 51% increase compared to the 2008 level. An
important milestone achieved during the year was the
generation of targeted qualified sales leads (QSL) from
China Bank. The various measures implemented by the
Banks management resulted in 106% achievement of
QSL goals for the year. To steer the business to a higher
level, a new senior management team took over the
helm of MCBLIfe in late 2009. Together with the senior
management of China Bank and CIBI, the business
model was refocused resulting in a substantially better
performance compared to the previous years.
New products such as MoneyMax (an endowment
product) and Critical Illness were introduced in October
2009 which became the best sellers in the last two
months of 2009 and accounts for the bulk of MCBLife
products sold in the first quarter of 2010. With a new
business model and clear-cut strategies in place,
MCBLife aims to grow the business substantially and
increase market share in 2010.
Savings Bank
2009 marked the first full year of operations of China
Bank Savings, Inc., (ChinaBank Savings) our savings
bank arm focused on servicing the retail market.
ChinaBank Savings main strategy for the first year
was to lay the foundations for efficient and sustainable
operationsconverting the savings banks existing
technology infrastructure to China Banks more robust
platforms, hiring top-caliber personnel and training them
20
2009 ANNUAL REPORT
in the highest level of customer service and banking

operations, and opening new branches and launching
new retail products to raise sales volumes and increase
customer base. It also expanded its branch network, from
one branch in 2008its main branch in Ayala Avenue,
Makati Cityto six branches, opening highly accessible
branches in Quezon City, Alabang, Kalookan, Greenhills,
and Cebu, all of which have contemporary interior
design and architecture and are equipped with modern
equipment and ATMs for 24/7 banking convenience.
With a mission to make banking easy for customers,
ChinaBank Savings offers superior deposit and loan
products and know-you-by-name service that create trust
and build loyalty. The savings banks deposit products
have very attractive features and competitive interest
rates: Easi-Save ATM Account, Easi-Earn Passbook
Account, Easi-Checking Account, Easi-Save Loaded, and
US Dollar Deposit Account. In the last quarter of 2009,
ChinaBank Savings rolled out three new deposit products:
Easi-Earn High Five, a five-year time deposit account
that earns 5.5% p.a., tax-free; Easi-Save for Kids, a fun
savings account for children,12 years of age and below;
and Easi-Checking Diary, a checking account that comes
with a passbook for easier monitoring. It also enhanced
its Easi-Save ATM Account with the launch of the instant
ATM cardcustomers who open an Easi-Save ATM
CHINA BANK
Account at any of the banks branches will receive their

personalized instant-issue ATM card on the same day,
ready to use at any ATM and BancNet-accredited stores
nationwide. Within its first year of operations, ChinaBank
Savings low cost deposit level grew by 48.7% and the
ratio of low cost-to high cost funds improved to 22.2%77.8% in 2009.
The savings bank also launched its first consumer
loan product, Easi-Drivin Auto Loan, in the third quarter
of 2009, which gives customers the chance to easily
acquire a vehicle for a low monthly interest of only 0.5%
per month. To support this undertaking, China Banks IPP
(Installment Paper Purchase) auto loan sourcing (dealergenerated) was turned over to ChinaBank Savings, giving
the business a solid springboard for future growth.
ChinaBank Savings is targeting to grow its auto loan
portfolio to P2.1 billion in the next three years.
To fuel the momentum of the first year and drive
significant business growth in 2010, ChinaBank Savings
is opening ten branches in Metro Manila and key cities
in the provinces. Product development will continue and
new banking products that cater to different consumer
segments like teens and senior citizens will be introduced
to support its value proposition of offering a full range
of banking products and services that suit customers
financial needs at every life stage.
21
2009 ANNUAL REPORT
Expanding Capabilities
2009 has been a year of accelerated growth and expansion. In an environment marked by
heightened competition, we have been able to broaden our customer base while escalating
volumes across all areas of our operation. We planned for this growth and have taken
the necessary steps to accommodate the challenges that accompany it. We continue to
strengthen our workforce through a combination of focused recruitment programs and
internal personnel development and training, and make significant investments in customer
service and IT infrastructure to further enhance China Banks competitive position.
CHINA BANK
22
2009 ANNUAL REPORT
Human Resources
Our people represent a distinguishing advantage in a very
competitive environment. Our Human Resources Division
(HRD) hires and retains dedicated and highly qualified
banking professionals to deliver the best combination
of service, solutions and products to our customers.
As of December 31, 2009, the Banks total manpower
complement reached 4,150. 704 new employees, 79 of
whom are officers and 15 are management trainees, were
hired to support China Banks continued expansion and
succession planning efforts. Various retention programs
were implemented as well, helping reduce the turn-over
rate from 15% in 2008 to 9.65% in 2009.
We invest heavily in developing our people and
nurturing our culture as we strongly believe that welltrained, motivated and engaged employees understand
our corporate objectives better and, as a result, will
enhance our customers banking experience. In 2009,
HRD undertook a thorough review of the Banks training
CHINA BANK
programs and facilities and inaugurated a bigger and

better training center in Makati City, the CBC Academy,
in the fourth quarter. A comprehensive training plan was
put together to respond to the Banks evolving business
requirements and to meet the needs of employees. A
total of 243 internal seminars, classroom sessions and
hands-on field trainings were conducted, including
the Banks flagship development programs for staff,
management trainees and officers. Main areas of focus
include sales and marketing, branch operations, lending
and credit, customer service, product awareness, fraud
prevention, regulation and compliance, including antimoney laundering practices, and more. To supplement
the Banks training programs, HRD also sent employees
to 185 external seminars.
As part of the strategy to constantly enhance operations
and improve over-all performance, HRD acquired the SAP
Human Capital Management (HCM) solution to automate
core HR processes such as recruitment, payroll, benefits,
23
2009 ANNUAL REPORT
A service quality structure has been developed

and implemented throughout the Bank to closely
monitor the operational function and efficiencies of
our branches and different business units.
training, reporting, and more. The SAP HCM, with all

of its modules fully activated by 2010, is expected to
streamline HR operations, maximize resources and
reduce administrative costs.
For 2010, HRD will continue to implement the
Banks employee developmental programs and initiate
new ones; launch the revised and updated Performance
Management System; review and improve compensation
and benefits; reassess job levels; strengthen the Banks
culture to drive performance, accountability, sense of
urgency and execution; hire qualified candidates for
various positions; and review and enhance the Code of
Ethics.
2010 also marks the start of a new two-year
Collective Bargaining Agreement (CBA) deal. Thus,
HRD looks forward to a successful negotiation and a fair
and mutually-beneficial agreement with our employee
union.
Customer Service
We strongly believe that our customers are our reason
for being. When we first opened our doors in 1920,
our Bank was founded on a simple premiseto be the
best bank for our customers. That is why we have been
working hard to continually instill a customer-focused
service culture to ensure the consistent delivery of our
products and services, within the highest quality service
parameters. Our promise of being more than a banker to
our customers, but the right partner for them, is fulfilled,
in part, by the strong emphasis we place on customer
satisfaction. With our excellent customer service, we
have one of the highest customer retention rates in the
CHINA BANK
country. Many of our customers have been our banking

partners for several generations.
Our dedicated team in the Service Quality
Department (SQD) promotes and implements our
service mission at various levels. A service quality
structure has been developed and implemented
throughout the Bank to closely monitor the operational
function and efficiencies of our branches and different
business units. In place is a sound Service Level
Agreement (SLA) to compel our branches and various
departments and business units to deliver according
to pre-defined agreements, Key Service Indicator
(KSI) or service standards monitoring to measure the
performance of key departments in terms of customerrelated processes, and customer feedback monitoring
wherein Customer Feedback/Suggestion boxes are
deployed at branches to measure performance against
customer expectations. The SQD also houses the
centralized unit that deals with all customer queries and
complaints, and coordinates their resolution with the
concerned departments.
2009 saw the launch of our internal service
brand campaign, I am China Bank. The campaign
aims to get all our people involved in building a China
Bank brand that is differentiated in the eyes of our
customers by not only delivering the right products
but also by creating the compelling experience to drive
our customers to do more business with us, as well as
to evoke a strong sense of pride about belonging to a
bank that espouses excellent customer service. SQD
rolled out the campaign in three parts, beginning with
the standardization of telephone greetings, followed
24
2009 ANNUAL REPORT
by the reinforcement of China Banks brand values of

being empathetic, responsive and proactive via regular
communications, to the launch of ISpeak.IWin, a
promo that encouraged our employees to speak out
on how to improve our customer service. Employee
engagement in SQDs campaign was high as evidenced
by the high number of entries for the promo and the
marked improvement in the way our people answer the
phone and greet customers.
In 2010, SQD is moving on to the next phase of
the campaign with the Quality Circle competition to
enjoin employees in process improvement initiatives
and the nationwide Mystery Shopping project to
gauge employee performance, the compliance level
of our branches versus service standards, transaction
turnaround time and overall perception of the China Bank
experience. An External Customer Satisfaction Survey
will likewise be rolled out to generate information on
the level of satisfaction and dissatisfaction on our bank
products and quality of service based on major product
groups, loyalty measurements based on the likelihood
to continue banking with us in the future and on the
likelihood to recommend China Bank, and image rating
based on the level of agreement/disagreement with a
number of attributes, among others. SQD is also setting
up a phonebanking center to have a single customer
hotline number that will make transacting with China
Bank very convenient for our customers.
Technology
From the onset, China Bank is deeply rooted in progressive
technology. We are the first bank in Southeast Asia
to process deposit accounts online in 1969, the first
Philippine bank to offer phone banking in 1988, and
again the first bank in Southeast Asia to acquire and
deploy the leading-edge NCR SelfServ ATMs in 2008.
Our ongoing investment in information technology (IT)
continues to deliver dividends as customer acquisition
and retention, product development, trade finance,
account management, risk management initiatives
essentially our whole business operationsbenefit
from the competitive advantage that our up-to-date
technology provides.
China Bank Properties and Computer Center, Inc.
(PCCI), our subsidiary and partner in all our IT under
CHINA BANK
takings, made significant strides in 2009 to buttress

our banking systems for increased transaction volumes.
Foremost among these accomplishments was the
upgrade of our Metavante Banking System to a multibank system. This enabled us to define more than one
financial institution in our core banking system. Corollary
to this upgrade was the conversion of ChinaBank Savings
from various old systems to the Metavante system for
Deposits, Loans, ATM, and General Ledger. Hence, we
now have just one core banking solution servicing both
China Bank and ChinaBank Savings.
Another banner project was the implementation
of Browser Teller, a browser-based tellering system. It
was implemented in all the six branches of the savings
bank and in thirty branches of China Bank. Of the thirty,
ten were converted from the Mosaic Tellering System,
while the rest were newly opened branches.
Aside form branch-related systems, there were
also implementations for Trust and Remittance. For
Trust, TAPS was upgraded to version 9, the latest
version available. This is a mandatory upgrade to ensure
continued vendor support. The Branch Trust Reporting
System (BRTRS) was also enhanced such that it is now
a web-based reporting system with more flexibility and
security built into it. BTRS is used by the branches to post
their trust fund transactions online. Its output is used by
Trust to determine its real-time cash position for the day
which, in turn, is used to make timely investment and
divestment decisions. For Remittance, Phase 1 of the
Carnelian System was implemented. This automated
the crediting of remittances to beneficiary China Bank
deposit accounts.
We will continue to employ state-of-the-art
technology to ensure cost-effective operations, efficient
management of information systems, enhanced delivery
capability and high service quality in 2010 and the years
ahead.
25
2009 ANNUAL REPORT
Corporate Social Responsibility
Helping Out,
Making Connections
At China Bank, we have always recognized our corporate social responsibility and sense of
community. True to our commitment of being more than a banker, but the right partnernot just
to our customers but also to the communities we serveour corporate participation in the many
celebrations, sports events, and endeavors to help certain sectors of our society, give us a great
sense of joy and satisfaction in being able to give something back. In 2009, we once again helped
out and made the connections that make the conduct of our business much more rewarding.
Help for victims of Typhoons Ondoy and

Pepeng
payable in three years. We also launched an internal
Immediately after Ondoy devastated Metro Manila
almost P390,000 in cash donations and in-kind donations
and nearby provinces in September 2009, we donated
which we repacked into bags of canned goods, food
P1,000,000 for the victims through the Philippine National
items, toiletries, and clothes, from our employees, were
Red Cross (PNRC). We also set-up a calamity fund to
divided and distributed to employee-victims and agency
encourage our employees and customers nationwide to
personnel.
donation campaign to benefit employee-victims. The
donate as well, especially when Pepeng ravaged Luzon

soon after. We raised P200,000 through our donation
Tulong Barya para sa Eskwela
drive which we again turned over to PNRC to support
A coin collection campaign of the Bangko Sentral
their relief operations.
ng Pilipinas (BSP) and the Department of Education
For our employees who also fell victim to these
(DepEd), Tulong Barya para sa Eskwela was launched
calamities, we gave a P5,000 cash assistance to each
in July 2008 to benefit public schools. We participated
of the 358 severely affected employees and released
by distributing the collection containers to our branch
P12.34 million in calamity loan proceeds at 3% interest,
network and raising P89,000 in coin donations from our
CHINA BANK
26
2009 ANNUAL REPORT
customers. In June 2009, we turned over P100,000 for
while the D.C.C. Scholarship Fund, named after one of
the project, which includes our share for the success of
our founding fathers, Dee C. Chuan, is a program for
this admirable endeavor.
incoming freshmen, particularly those pursuing business

degrees. Both scholarship programs cover the tuition
A China Bank ATM for a scholarship grant
fee for high school and 4-year college education in any
We found a way to provide day & night banking
school or university in the country.
convenience to students and employees of Ateneo de

Manila University (ADMU) and at the same time, help
a gifted student get the education he deserves. Our
Sponsorship Partner
Binondo Business Center signed an agreement with
The fabric of our communities is woven with our
ADMU officials to install an ATM inside the Loyola
continuous involvement in national and local events
campus. But instead of paying rent for the ATM, it was
from our sponsorship of sports events and tournaments,
agreed that China Bank will be a benefactor of ADMU
support of cultural fairs and activities, participation in the
scholar, Victor Andrew Antonio. We have been paying for
anniversary celebrations and conventions of different
the tuition and other fees of Antonio until he graduates in
associations, organizations and universities, to our
2012 with a BS Math degree.
support of charitable institutionswe allocate a portion

of our yearly budget to help, in our little way, make these
Gilbert U. Dee and Dee C. Chuan

Scholarship Funds
noteworthy celebrations and undertakings a success.
One of our continuing CSR projects focuses on giving

promising children of China Bank employees the
quality education they deserve. The G.U.D Scholarship
Fund, named after Board Chairman Gilbert U. Dee, is a
scholarship program for incoming high school students,
CHINA BANK
27
2009 ANNUAL REPORT
Pursuing Sound
We have always believed that China Banks success is influenced by our good reputation,
character, integrity and credibility. Guided by our firm commitment to be more than a
banker to our customers and a truly reliable and dependable partner, we have worked very
hard not only on delivering customer and shareholder value, but also in conducting our
business duly compliant with the regulatory requirements and recognized norms.
CHINA BANK
28
2009 ANNUAL REPORT
For close to nine decades, we have anchored

our business on honesty, fairness, transparency and
accountability to our customers, shareholders and other
stakeholders. In relation to this, we ensure the timely
submission of complete and accurate reports to the
regulatory agencies, including related party transactions.
We have also been transparent by disclosing to both the
Philippine Stock Exchange (PSE) and the Securities and
Exchange Commission (SEC) all sensitive information
that may affect the value of China Banks stocks.
Our guiding corporate governance principles call for us
to always protect the rights of the minority shareholders,
pursue continuous improvement and excellence, and
adopt the best practices in good governance to foster a
culture of a proactive board of directors that is accountable
and responsible for the affairs and performance of China
Bank, and dynamic officers and staff who support our
goal of bank wide compliance.
CHINA BANK
Governance structure
China Banks corporate governance structure is
a vital element in enhancing our financial growth,
competitiveness, and in implementing our sustainability
framework. The Board of Directors is at the core of our
corporate governance structure. The Board represents our
shareholders, guides our overall philosophy and direction,
and sets the pace for our current operations and future
developments. Governance by the Board also includes
continuous review of our internal structure to ensure that
there are clear lines of accountability for management
throughout the Bank. The Board also oversees our risk
management and remuneration systems.
The roles of Chairman of the Board and Chief
Executive Officer are segregated, with a clear division of
duties and responsibilities. Our Chairman of the Board is
responsible for the leadership and effective running of the
Board; on the other hand, the CEO is primarily responsible
29
2009 ANNUAL REPORT
for the achievement of agreed objectives and execution

of strategy as established by the Board of Directors,
and leading the senior executive team in the day-to-day
running of the business.
Manual on Corporate Governance

China Banks Manual on Corporate Governance was
revised in 2009 and approved by the Board, aligned
with the updates issued by the Securities and Exchange
Commission (SEC) and the Bangko Sentral ng Pilipinas
(BSP) incorporating best practice in good corporate
governance.
Compliance with the provisions of the Corporate
Governance Manual is being monitored by our
Compliance Office, which also identifies, monitors
and controls compliance risk. The revised Manual was
disclosed to the PSE, SEC and BSP and is available in the
Banks website under Investor Relations.
Code of Ethics
It is fundamentally important that our values and principles
are clearly defined, understood and adhered to by all our
employees to ascertain that all of China Banks activities
are executed in compliance with the relevant laws and in
accordance with the legitimate interests of our customers,
shareholders and all other stakeholders. We have a Code
of Ethics, approved by the Board of Directors in 1996, in
which the Banks values and principles are embedded.
Our Human Resources Division (HRD) is fully committed
to disseminating the principles of the Code and ensuring
that our people perform their duties and responsibilities
in accordance with this Code. All employees who join
the Bank undergo a New Employees Orientation Course
(NEOC) wherein the Code is discussed extensively the
standard behavior, business conduct, and corresponding
sanctions for violations. Employees are also required
to sign the acknowledgement receipt that they have
a copy of the Code and that they will comply with its
provisions.
Board Commitment
The China Bank Board of Directors is collectively
responsible for the governance of the Bank. It has
control of and makes decisions on matters relating to the
Banks affairs, including annual plans and performance
targets, specified senior appointments, acquisitions
and disposals above predetermined thresholds, and any
significant change in balance sheet management policy.
CHINA BANK
Upon their election, the members of the Board are

issued a copy of their general and specific duties and
responsibilities as prescribed by the Manual of Regulations
for Banks (MORB), which they acknowledged to have
received and certify that they read and fully understood
the same. Copies of the acknowledgement receipt and
certification are submitted to BSP within the prescribed
period. Moreover, the Directors also individually submit a
Sworn Certification that they posses all the qualifications
as enumerated in the MORB. These certifications
are submitted to BSP after their election. Additional
certifications are executed by Independent Directors to
comply with Securities Regulation Code and BSP rules
which are then submitted to the SEC.
The China Bank Board meets every first Wednesday
of each month. In 2009, the Board had 15 scheduled
meetings. All the Directors were notified in advance and
provided with the pertinent materials and information
prior to each Board meeting to allow them to prepare
for discussion of the items at the meeting. Special
meetings were held when necessary. It is the Boards
policy to encourage each directors attendance at all
scheduled Board meetings and all meetings of the
Banks stockholders.
Board Composition
The 2009 Board comprises eleven Directors and
two Advisors to the Board. Of the eleven, three are
executive Directors and the rest are non-executive
Directors. Candidates are selected for, among other
things, their integrity, independence, leadership, their
ability to exercise sound judgment, and their experience
at policy-making levels involving issues affecting
business, government, as well as areas relevant to
the Banks operations. The Corporate Governance
Committee reviews and evaluates the qualifications of
the candidates, the full Board confirms these candidates
nomination, and the shareholders elect the Directors
during the Annual Stockholders Meeting.
We recognize the crucial role of Independent
Directors in our Board; that is why we have three
independent non-executive Directors, exceeding the
requirements of BSP and SEC, to create a strong element
of independence in the China Bank Board. They are in
the Board to protect the interest of the shareholders,
exercise independent judgment on issues or matters
presented to the board, and ensure efficient and
transparent management especially on areas of related
30
2009 ANNUAL REPORT
party transaction. Our Independent Directors are free from

any business, family, or any other relationship with China
Bank, the controlling shareholders, or the management,
which could affect their judgment. In addition, all three of
them meet BSP and SECs guidelines in assessing their
independence, including not having been an officer of the
Bank for the past three years, not a director or officer of
the majority stockholder of the China Bank, and owns less
than two percent of the subscribed capital stock, among
other requirements.
Induction program of the Board

In place is a full orientation and continuing education process
for Board members that includes extensive materials,
meetings with key management and visits to branches.
All Directors have full and timely access to all relevant
information about the Bank so that they can effectively
discharge their duties and responsibilities as Directors.
The Directors are provided Board materials related to the
agenda sufficiently in advance of Board meetings to allow
them to prepare for discussion of the items at the meeting.
They likewise have access to the Corporate Secretary who
is responsible for ensuring that the Board procedures and
related rules and regulations are followed.
All the members of the Board have attended the
required Corporate Governance Seminar.
And as part of the Boards continuing education, the
Directors as well as senior executives of the Bank attended
a seminar on the Anti-Money Laundering Act (AMLA)
organized by our Compliance Office in partnership with
the AML Council Secretariat in November 2009.
Evaluation System
In accordance with international best practice and as
mandated by the SEC, China Banks Board has an
evaluation system for individual Directors patterned
after the suggested form of the Institute of Corporate
Directors (ICD). In 2005, in compliance with the BSP
requirements, the Board adopted an evaluation system
to assess the Board Committees, specifically the Audit
Committee, Compensation or Remuneration Committee,
Corporate Governance Committee and Risk Management
Committee. The Compliance Committee and Compliance
Office are now also evaluated.
Self-evaluation of performance is done annually. The
results are summarized by the Chief Compliance Officer,
discussed by the Corporate Governance Committee and
reported to the Board. The results of the 2008 Board
Review were presented to the Board on February 4,
2009. Based on the results of the annual evaluation, there
are no significant deviations and in general, the Bank has
complied with the provisions and requirements of the
Corporate Governance Manual.
An annual Certification of Compliance on Good
Corporate Governance is submitted to the SEC and the
Philippine Stock Exchange (PSE).
Board Committees
To assist in the execution of its responsibilities, the Board
has established a number of key committees. The members
of the different committees are appointed by the Board
during the Annual Organizational Meeting of the Board,
following the Annual Meeting of Stockholders in May.
Board Attendance - January to December 2009
Director
Gilbert U. Dee
Hans T. Sy
Peter S. Dee
Joaquin T. Dee
Dy Tiong*
Herbert T. Sy
Harley T. Sy
Alberto S. Yao*
Robert F. Kuan*
Jose T. Sio
Ricardo R. Chua
Present
Absent
14
14
15
15
14
15
15
15
13
15
15
1
1
0
0
1
0
0
0
2
0
0
*Independent Director
CHINA BANK
31
2009 ANNUAL REPORT
Percentage
93%
93%
100%
100%
93%
100%
100%
100%
87%
100%
100%
Executive Committee or ExCom, when the Board of

Directors is not in session, has the powers of the Board
of Directors in the management of the business and
affairs of the Bank, except with respect to: approval
of any action for which stockholders approval is
also required; the filling of vacancies in the Board of
Directors; the amendment or repeal of the By-laws or
the adoption of new By-laws; the amendment or repeal
of any resolution of the Board of Directors which by
its express terms is not so amendable or repealable; a
distribution of cash dividends to the stockholders; and
such other matters specifically excluded or limited by
the Board of Directors and/or by laws or regulations.
The ExCom meets on Wednesdays. In 2009,
it had 36 meetings. Aside from these regularly
scheduled meetings, it also had three joint committee
meetings with the Risk Management, Corporate
Governance and Audit Committees.
Chairman: Hans T. Sy; Members: Gilbert U. Dee,
Peter S. Dee, Joaquin T. Dee and Dy Tiong*
Management Committee or ManCom formulates
the Banks business plans as directed by the
Board of Directors and reports to the Board on the
implementation of corporate strategies designed to
fulfill the Banks corporate mission and business goals.
At the operating level, it covers top management
matters such as, but not limited to, environmental
assessment, objectives setting, performance and
budget review, asset/liability issues, organizational and
human resource development, product development,
and major operating policies. Majority of the members
are not directors but the Banks senior officers. The
ManCom meets weekly.
Chairman: Ricardo R. Chua;
Members: Gilbert U. Dee, Peter S. Dee, Nancy D. Yang**,
Samuel L. Chiong**, Rhodora Z. Canto**,
Ramon R. Zamora**, Rene J. Sarmiento**,
Antonio S. Espedido, Jr.**, Margarita L. San Juan**,
Rabboni Francis B. Arjonillo**, Alberto Emilio V. Ramos**
and Alexander C. Escucha**
Credit Committee or CreCom, a management

committee, reviews and approves all credit
applications within its credit approval authority and
endorses all credit applications exceeding its credit
CHINA BANK
33
approval authority, including related party transactions

(DOSRI), to the Executive Committee or the Board
of the Directors for appropriate action. The CreCom
meets once a week.
Chairmen: Gilbert U. Dee and Peter S. Dee;
Vice Chairman: Ricardo R. Chua;
Members: Nancy D. Yang**, Margarita L. San Juan**,
Samuel L. Chiong**, Ramon R. Zamora**,
Rhodora Z. Canto*** and Rabboni Francis B. Arjonillo***
Risk Management Committee is principally

responsible for the oversight and development of all
the Banks risk management functions, including but
not limited to market risk, credit risk, and operational
risk. It develops a written risk management plan
appropriate for managing the major categories of
risk events to minimize the magnitude of expected
losses and evaluates the plan to ensure its continued
relevancy, comprehensiveness and effectiveness.
It likewise oversees the system that manages
the discretionary authority limits delegated to
Management, ensures that this system continues to
be effective, that the authority limits are observed,
and that immediate corrective actions are taken
whenever breaches occur. The Committee meets
once a month.
Chairman: Hans T. Sy; Members: Peter S. Dee,
Joaquin T. Dee and Robert F. Kuan*
Audit Committee primarily oversees all matters

pertaining to audit, the Banks internal audit function
and performance, the integrity of the Banks financial
statements, and the Banks accounting processes
in general, among other things. It likewise provides
oversight on the senior managements activities,
as well as the Banks internal and external auditors
and monitors and evaluates the adequacy and
effectiveness of the Banks internal control system.
The Committee meets once a month. In 2009, it had
12 joint committee meetings with the Compliance
and Corporate Governance Committees and one
joint meeting with the Executive Committee, Risk
*
Independent director
** Non-director member
*** Non-director and non-voting member
2009 ANNUAL REPORT
agency accounts, unless this function is specifically

delegated by the Board of Directors to the First Vice
President of the Trust Group or other senior officers
of the Bank, consistent with existing regulations. The
Committee meets once a month.
Management and Corporate Governance Committees

wherein the subject was the implementation of the
Internal Capital Adequacy Assessment Process
(ICAAP).
Chairman: Alberto S. Yao*;
Members: Joaquin T. Dee and Robert F. Kuan*
Chairman: Jose T. Sio;

Members: Peter S. Dee, Dy Tiong, Herbert T. Sy
Corporate Governance Committee reviews

and evaluates the qualifications of those who are
nominated to the Board, as well as those nominated
to other positions requiring appointment by the
Board of Directors. It is also responsible for ensuring
the Boards effectiveness and due observance of
Corporate Governance principles and guidelines as
well as oversees the periodic performance evaluation
of the Board and its Committees and Executive
Management. The Committee meets on a monthly
basis. It also had seven joint committee meetings
with the Nominations Committee.
and Rene J. Sarmiento**
Nominations
Committee
appraises
all
appointments and/or promotions to senior officer
positions favorably endorsed by the Promotions
Review Committee. The Committee meets as
needed. It also had seven joint committee meetings
with the Corporate Governance Committee.
Chairman: Dy Tiong*;
Members: Hans T. Sy and Joaquin T. Dee
Compensation or Remuneration Committee

provides oversight over the remuneration of senior
management and other key personnel, ensuring that
compensation is consistent with the Banks culture,
strategy and control environment. The Committee
meets as needed. In 2009 it had two committee
meetings.
Chairman: Joaquin T. Dee;

Members: Hans T. Sy, Dy Tiong*, Alberto S. Yao*
and Robert F. Kuan*
Compliance Committee is committed to ensuring

that the activities of the Bank and its staff are
conducted in accordance with all applicable laws
and regulations, all relevant internal rules, policies
and procedures, and the highest ethical standards. It
ensures that the management operates in accordance
with the prescribed laws, rules, regulations, policies,
procedures and guidelines and that appropriate
corrective actions are being taken when necessary or
required. The Committee holds meetings monthly.
Chairman: Joaquin T. Dee;
Members: Hans T. Sy and Dy Tiong*
Trust Investment Committee is responsible for

the investment supervision over all the portfolios or
funds under the management of the Trust Group.
It acts upon all trust business for acceptance as
well as approval of all investments for trust and
Chairman: Hans T. Sy;

Members: Gilbert U. Dee, Peter S. Dee, Joaquin T. Dee,
Dy Tiong* and Harley T. Sy
Board Remuneration
In accordance with the Banks amended By-Laws,
members of the Board of Directors are entitled to a per
diem of P500.00 for attendance at each meeting of the
Board or of any committees and to 4% of the Banks net
earnings. Details are disclosed in the PSE and China
Bank websites, and in China Banks SEC form 20-IS.
Non-executive directors do not receive any performance
related compensation. Directors remuneration covers
all China Bank Board activities and membership of
committees and subsidiary companies.
Internal Audit
*
**
Through the years, we remained transparent about

China Banks financial position and results of operations,
providing comprehensive, timely and accurate information
Independent director
Non-director member
CHINA BANK
34
2009 ANNUAL REPORT
As part of our continuing education program to

build internal competencies, the Audit Division
underwent a comprehensive Risk-Based Internal
Audit Training Workshop in 2009.
on our financial stability, liquidity and profitability, as well

as significant changes in business activities. The Board
examines and approves our annual operating plan on a
yearly basis and all reports on financial results, business
performance and variances are evaluated against the
approved annual operating plan at Board meetings. The
Directors acknowledge their responsibility for preparing
the accounts of the Bank. The Audit Committee in
particular, is responsible for the integrity and reliability of
China Banks accounting records as well as the series of
processes and controls by which our financial statements,
related supporting notes, and other important financial
reports are prepared and reviewed.
The Audit Committee is composed of three members
of the Board of Directors, two of whom are independent
directors, including the Chairman. The members of the
Audit Committee have also been selected on the basis
of their expertise in financial statement analysis and risk
management. The Audit Committee regularly meets
with the senior financial, internal audit and compliance
executives and the external auditors. Significant findings
and recommendations are reported to the Board following
each Audit Committee meeting. On the implementation
side, the Audit Committee is directly supported by the
internal Audit Division, headed by the Chief Internal
Auditor, which is independent of the business operations
and reports directly to the Audit Committee.
The Audit Division ensures that adequate controls are
in place and monitors compliance to controls. The Division
implements our annual audit plan, conducting audit
activities (operational, financial and compliance audit),
monitoring activities performed for financial reporting and
monitoring the implementation of corrective actions. As
part of the audit procedures, the Audit Division regularly
CHINA BANK
corroborates whether the appropriate process and

detection controls are in place and working effectively to
ensure the reliability and completeness of the accounting
records.
As part of our continuing education program
to build internal competencies, the Audit Division
underwent a comprehensive Risk-Based Internal Audit
Training Workshop in 2009 together with the officers
of Compliance Office, Risk Management Group, Credit
Management Group and Business Process Management
Division. Conducted by Sycip, Gorres, Velayo & Co.
(SGV & Co.)/Ernst & Young, the primary objective of the
training workshop was to strengthen our internal audit
process in line with the latest developments and best
practices in internal audit, guiding our audit team in the
conduct of risk based audit planning and understanding
the system, assessing the controls and other risk
mitigation techniques, testing controls and performance,
evaluating findings and reporting.
External Audit
The auditing of China Banks financial statements is
entrusted, in accordance with the law, to an audit firm.
Our current external auditor, Sycip, Gorres, Velayo & Co.
(SGV & Co.)/Ernst & Young, ensures that our financial
statements factually represent the Banks accounting
records and are treated and presented in accordance with
the Philippine Financial Reporting Standards (PFRS) and
prepares an assessment on the efficacy of the internal
control system, applied to financial reporting, which
oversees the preparation of the consolidated financial
statements.
SGV & Co./Ernst & Youngs lead audit partner and
audit review partner or concurring reviewer assigned to
35
2009 ANNUAL REPORT
China Bank is rotated every five years with an interval

of two years, in compliance with the BSP requirement.
This audit partner rotation is an important element to
achieving a fresh look at the engagement for the audit of
China Banks financial statements.
SGV & Co./Ernst & Young has been our independent
auditor for more than 20 years and is again recommended
for appointment at the scheduled annual stockholders
meeting. Throughout China Banks history, the firm
found no significant exceptions such as cases of fraud
or dishonesty, and any other matters which could
potentially result in material losses to the Bank and our
stakeholders.
Risk Management
China Banks corporate governance structure keeps
pace with the changing risks that the Bank faces and
will be facing in the coming years with a dynamic risk
management program that ensures that our various risks
are identified, measured, monitored, and controlled,
and that these risks as well as the controls in place are
continually reassessed and reported in a timely manner
to the Board. Our Board is responsible for the oversight
of our risk management process; on the other hand, the
risk management processes of the subsidiaries are the
separate responsibilities of their respective Boards.
Our risk management objective is primarily focused
on controlling and mitigating our key riskscredit,
market, interest rate, liquidity, operational, compliance,
strategic, and reputational risks. The Board created a
separate board-level independent committee, the Risk
Management Committee, responsible for managing
and monitoring risks. Supporting the Risk Management
Committee in the day-to-day risk management and the
implementation of the risk management strategies is the
Risk Management Group (RMG), headed by the Chief
Risk Officer. The RMG monitors the implementation of
specific risk control procedures and enforces compliance
to these procedures, and ensures that risk measurements
are accurately and completely captured on a timely basis in
China Banks management reporting system. Apart from
RMG, each business unit has various process controls
in place to ensure that all their external and internal
transactions and dealings are in compliance with their
respective risk management objectives. To determine
the effectiveness of our risk management program,
CHINA BANK
our internal auditors test and evaluate it, including the

processes and controls, and communicate the results to
the Board and the Audit Committee.
Based on the approved Operational Risk
Assessment Program, RMG spearheaded the bank wide
risk identification and self-assessment process to enable
each business unit to determine priority risk areas, assess
the mitigating controls in place, and institutionalize
additional measures to ensure a controlled operating
environment. In 2009, the top-down risk prioritization
was completed and the top risks were finalized based on
the results of the Risk Self-assessment Survey and the
voting conducted among selected members of the Board
and Senior Management. These are vital elements in the
development of our ICAAP to determine China Banks
minimum required capital relative to our business risk
exposures. The Board approved the engagement of the
services of a consultant, SGV & Co./Ernst & Young, to
assist in the bank wide implementation and embedding
of the ICAAP, as provided for under Pillar 2 of Basel II and
BSP Circular 639.
Moving forward, it is our goal to continually expand
and strengthen our risk management process to drive
our future profitability and financial stability. We are
acquiring an asset-liability management (ALM) system
to strategically manage risks arising from mismatches
between the Banks assets and liabilities, particularly
in the area of interest rate and liquidity risk. Business
planning and forecasting in ALM provides the lines
of business with complete balance sheet metrics to
evaluate and manage business growth assumptions,
pricing plans, including revenues, business margins and
the portfolio risks required to generate balance sheet
performance. In 2009, we created an ALM Task Force
to determine the Banks requirements and selection
criteria as well as to evaluate proposals from software
providers.
Compliance System
In conducting our business, we are committed to the
highest levels of ethical standards. We have a compliance
system in place to ensure China Bank is consistently
complying with applicable laws, rules and regulations of
the BSP, SEC, PSE, Bureau of Internal Revenue (BIR) and
other regulators. Our Compliance Office, headed by the
Chief Compliance Officer, is an independent body that
36
2009 ANNUAL REPORT
oversees and coordinates the implementation of the

Banks compliance system. It develops China Banks
compliance policies for Board review and approval, and
administers and enforces these policies to establish
standards and controls to promote investor confidence,
protect the Bank, our people, subsidiaries, and joint
venture operations from violating any laws in the various
jurisdictions where we operate, and protect the interests
of our customers and shareholders. The Compliance
Office also acts as liaison for the Board and Management
on regulatory compliance matters with the regulatory
agencies, and provides timely assistance to concerned
officers, units, branches and departments on the various
requirements of the regulators and counterparties.
The Compliance Office takes a proactive stand
in building a compliance culture and awareness in the
Bank, regularly disseminating advisories on compliance
issues and regulatory matters and conducting various
lectures and briefings about the Compliance System,
Anti-Money Laundering, Corporate Governance,
various bank regulations, regulatory changes and other
compliance-related endeavors. The Compliance Office
also established a monitoring framework to engage
all the business units in the enforcement of bankwide compliance program and in the assessment of
appropriate controls in all areas of operations. In addition
to the monitoring by the business units, the Compliance
Office separately undertakes monitoring.
The Compliance Office has ongoing seminars on
the Base60 automated Anti-Money Laundering System
and the basics of the Anti-Money Laundering Act
(AMLA) and current trends to ensure that our people
have sufficient knowledge of AML law and regulations;
and that they are able to identify and be aware of
risks and deter opportunities for money laundering,
including the prevailing techniques, methods and trends;
comply with the Know Your Customer Policy and
take adequate Customer Due Diligence measures and
identify suspicious transactions of money laundering, in
compliance with AMLA Regulations. In 2009, 18 AMLA
seminars were conducted.
In 2010, our Compliance Office will further strengthen
our compliance program as it aims to elevate the Banks
CAMELS Rating (Capital Adequacy, Assets Quality,
Management Efficiency, Earnings Capacity, Liquidity and
Sensitivity to Market Risk) to the next level.
CHINA BANK
Capital Adequacy
On top of a robust audit, risk and compliance program,
we adopted in 2007 the Basel II Revised International
Capital framework which is the international standard
for determining capital requirements. And in 2009,
we began developing our ICAAP document. We have
engaged the services of SGV & Co./Ernst & Young to
perform a diagnostic review of our ICAAP and to provide
the additional qualitative input to ensure we consider
market and supervisory expectations. Our ICAAP
Committees and SGV & Co./Ernst & Young have been
regularly meeting to flesh out the crucial elements of the
ICAAP: assessment, identification and measurement of
the risks the Bank is or may be exposed to; application
of mitigation techniques; stress-testing techniques; and
the role of the Board of Directors and management.
Currently, banks are required by BSP to maintain
a risk-based capital adequacy ratio (CAR) of at least
10%China Banks total CAR as of December 31, 2009
is 12.80%. The ICAAP goes beyond this requirement as
the risk assessment now considers risks not captured
and not fully captured by the current capital framework
such as credit concentration risk and those posed by
contingent exposures. We are developing our ICAAP to
ensure that we have the capital to support our continued
expansion plans and to weather the downturns in the
market. Once complete, our ICAAP will make it easier
for us to assess our various risks, and together with the
appropriate management actions, evaluate the capital
implications.
As required by BSP, China Bank has already
submitted a trial ICAAP document in March 2009. We
will comply with BSPs requirement to submit our final
ICAAP on or before January 2011.
37
2009 ANNUAL REPORT
Board of Directors
HENRY SY, SR.
GILBERT U. DEE
HANS T. SY
PETER S. DEE
Honorary Chairman and

Advisor to the Board

President and
Chief Executive Officer
HENRY SY, SR.

Honorary Chairman and
Risk Management Committee

GILBERT U. DEE
(Chairman of the Board)
JOAQUIN T. DEE
(Director)
Chairman:
Chairman:
Credit Committee
Board of Trustees of China Banking
Corporation Employees
Retirement Plan
Compliance Committee
ROBERT F. KUAN
(Independent Director)
Member:
Member:
Executive Committee
Executive Committee
Audit Committee
Nominations Committee
Corporate Governance Committee

Audit Committee
HANS T. SY
(Vice Chairman of the Board)
DY TIONG
Chairman:
Chairman:
Chairman:
Executive Committee
ALBERTO S. YAO
Chairman:
Audit Committee
Member:
Member:
Trust Investment Committee
Member:
Executive Committee
PETER S. DEE
(Director and Chief Executive Officer)
HARLEY T. SY
(Director)
Chairman:
Member:
Credit Committee
Member:
JOSE T. SIO
(Director)
RICARDO R. CHUA
(Director, Executive Vice President
and Chief Operating Officer)
Chairman:
Vice Chairman:
Credit Committee
Member:

Retirement Plan
PILAR N. LIAO
Member:
Executive Committee
Retirement Plan
HERBERT T. SY
(Director)
Member:
CHINA BANK
38
ATTY. CORAZON I. MORANDO

Corporate Secretary
2009 ANNUAL REPORT
RICARDO R. CHUA
JOAQUIN T. DEE
HERBERT T. SY
HARLEY T. SY
Executive Vice President

and Chief Operating Officer
Director
Director
Director
JOSE T. SIO
DY TIONG
ALBERTO S. YAO
ROBERT F. KUAN
Director
Independent Director
PILAR N. LIAO Advisor to the Board
CHINA BANK
39
2009 ANNUAL REPORT
Board of Directors
HENRY SY, SR., 85, Honorary Chairman of the Board and
University of the East and took a Special Banking course
Advisor to the Board, holds an Associate in Commercial
from the American Institute of Banking in 1966.
Science degree from Far Eastern University. He was
has been the Banks President & CEO since 1985 and a
conferred the degree of Doctor in Business Management
Director since 1977. He has had over 30 years of banking
(Honoris Causa) by De La Salle University in 1999. He
experience, having worked with Rizal Commercial Banking
is the concurrent Chairman and President of a number
Corporation as Assistant Vice President from 1963 to
of corporations, including SM Keppel Land, Inc. and
1971. Prior to being a Director of China Bank, he served
Sysmart, Inc. He is also the Chairman Emeritus of Banco
as Vice President of the Bank beginning 1972 up to 1977.
de Oro Universal Bank and Chairman of SM Land, Inc.
He holds directorships in affiliates/subsidiaries and other
(formerly Shoemart, Inc.), Highlands Prime, Inc., SM
corporations, some of which are PCCI, CBC Forex Corp.
Investments Corporation (the holding company of the SM
(CBC Forex), China Bank Insurance Brokers, Inc. (CIBI),
Group of Companies), and other companies in the SM
Cityland Devt. Corp., Hydee Mgmt. & Resources Corp.,
conglomerate.
Can Lacquer, Inc. and GDSK Devt. Corp. He is also an
He
Independent Director of Cityland, Inc., and City and Land

GILBERT U. DEE, 74, Chairman of the Board, holds a
Developers, Inc.
Bachelor of Science degree in Banking from De La Salle

University. He obtained his MBA in Finance from the
JOAQUIN T. DEE, 74, Director, holds a Bachelor of
University of Southern California in 1959. He has been a
Science degree in Commerce from Letran College. He
Director in the China Bank Board since 1969 and in 1989,
was elected Director of the Bank in 1984. He was the Vice-
he became the Chairman of the Board. He was formerly a
President for Sales and Administration of Wellington Flour
director of the Philippine Pacific Capital Corporation, Philex
Mills from 1964 to 1994. He is presently the President of
Mining Corporation and CBC Finance Corporation, and
JJACCIS Development Corporation, Director/President of
President of GAB Investment Corporation. He currently
Enterprise Realty Corporation, and Director/Treasurer of
holds directorships in affiliates/subsidiaries and other
Suntree Holdings Corporation.
corporations, such as China Bank Properties & Computer

Center, Inc. (PCCI), Union Motor Corporation and Super
DY TIONG, 80, Independent Director, holds a Bachelor of
Industrial Corporation.
Science degree in Business Administration from National

Jean Kuan College. He has been a Director of the Bank
HANS T. SY, 54, Vice Chairman of the Board and Chairman
since 1985. He was formerly the Chairman of Universal
of the Executive Committee (ExCom), holds a Bachelor
Realty & Development Corporation, a Director of CBC
of Science degree in Mechanical Engineering from De La
Finance, Inc. from 1980 to 2001, and President of Panelon
Salle University. A China Bank Director since 1986, he was
Development Corporation from 1990 to 1994. He currently
elected Vice Chairman of the Board and Chairman of the
holds directorship in Panelon Phils., Inc., trusteeship in
ExCom in 1989. He was formerly the Chairman/President
Chiang Kai Shek College, and is the Chairman Emeritus of
of North Edsa Marketing, Inc. and Wonderfoods, Inc. He
the Dr. Sun Yat Sen Society.
currently holds directorships in Best Rubber Corporation,

ACE Hardware Phils., Inc., Family Entertainment Center,
HERBERT T. SY, 53, Director, holds a Bachelor of Science
Inc., HS Food, Inc., Land and Building Corp., Multi-
degree in Management from De La Salle University.
Realty Development Corporation and Shopping Center
He has been a Director of the Bank since 1993 and a
Management Corporation, among other corporations.
director/officer for more than five years in companies

engaged in banking, food retailing, rubber manufacturing,
PETER S. DEE, 68, Director and President & Chief
investment, car service and car accessories, real estate
Executive Officer (CEO), holds a Bachelor of Science
development and mall operations. He presently holds
degree in Commerce from De La Salle University/
the following positions: Director and Vice-President of
CHINA BANK
40
2009 ANNUAL REPORT
Best Rubber Corp., Director of SM Prime Holdings, Inc.,
JOSE T. SIO, 70, Director, holds a Bachelor of Science
Director and President of Supervalue, Inc., and Chairman
degree in Commerce, Major in Accounting, from the
of Sondrik,Inc.
University of San Agustin and Masters in Business

Administration from New York University. He has been
HARLEY T. SY, 50, Director, holds a Bachelor of Science
a Director of the Bank since 2007. He was a Partner at
degree in Commerce, Major in Finance, from De La Salle
Sycip Gorres Velayo & Co. (SGV) from 1977 to 1990, and
University. He became the Banks Director in 2001. He
Director of BDO Capital Investment Corporation from
was a Director of Banco De Oro from 1989 to 1998. He
1999 to 2007. He is presently the Chief Financial Officer
is the President of SM Investments Corporation and his
of SM Investments Corporation and Director of the
present directorships include the following corporations:
following corporations: Rappel Holdings, Inc., Generali
ACE Hardware Phils., Inc., H.S. Food, Inc., and Supervalue,
Pilipinas Holding Company, Inc., SM Keppel Land, Inc.,
Inc.
Consolidated Prime Development Corporation, and Asia

Pacific College.
ALBERTO S. YAO, 63, Independent Director, holds a

Bachelor of Science degree in Business Administration
RICARDO R. CHUA, 58, Director and Executive Vice
from Mapua Institute of Technology.
He became a
President (EVP) and Chief Operating Officer (COO), holds
Director in July 2004. He was the Vice-President for
a Bachelor of Science Degree in Business Administration,
Merchandising of Zenco Sales, Inc. from 1968 to 1975.
Major in Accounting, from the University of the East. He
He is presently an independent director of China Bank
obtained his Masters in Business Management from AIM
Savings, Inc. His present directorship/officership in other
in 1975. He became a Director of the Bank in 2008 and has
corporations include Richwell Trading Corp., Richwell
been the Banks EVP & COO since 1995. He joined the
Phils., Inc., Europlay Distributor Co., Inc., Richphil House,
Bank in 1975 after a stint with SGV. He has been a Director
Inc., and Megarich Property Ventures Corp.
of the following Bank affiliates/subsidiaries, namely, CIBI

since 1998, CBC Forex Corp. since 1997, and PCCI since
ROBERT F. KUAN, 61, Independent Director, holds a
1990. He is also the Chairman of ChinaBank Savings and
Chairman of BancNet, Inc., as well as Director of other
from the University of the Philippines. He obtained his
corporations, some of which are Philippine Clearing
Masters in Business Management from Asian Institute
House Corporation (PCHC) and CAVACON Corporation.
of Management (AIM) in 1975 and attended the Top

Management Program conducted by AIM in Bali,
PILAR N. LIAO, 79, Advisor to the Board, holds a
Indonesia in 1993. He became a Director of the Bank in
Bachelors degree in Home Economics from the College
2005. He has been the Chairman of the Board of Trustees
of the Holy Spirit. She has been a Director of the Bank
of St. Lukes Medical Center and member of the Board of
from 1985-1986, 1999-2000, 2001-2002, and 2003-
Trustees of St. Lukes College of Medicine since 1996,
2008, and Advisor to the Board in 2000-2001, 2002-2003
Director of Far Eastern University since 2004, member of
and 2008-present. She is a Director of Flag International
the Board of Trustees of Brent International School, Inc.
Customs Brokerage and Chairman of Speed Office
since 2009, and Director of Seaoil Phils., Inc. since 2008.
Systems and has held directorships in Security Mutual
He is also the founder of Chowking Food Corporation and
Fund Corporation from 1954 to 2003 and in Occidental
its President from 1985 until 2000. He is also presently
Data Corporation from 1988 to 2000.
an independent director of China Bank Savings, Inc.

CHINA BANK
41
2009 ANNUAL REPORT
From left: Ricardo R. Chua (Committee Chairman), Nancy D. Yang, Gilbert U. Dee, Peter S. Dee, Antonio S. Espedido, Jr. and Ramon R. Zamora
From left: Samuel L. Chiong, Margarita L. San Juan, Alberto Emilio V. Ramos (Effective April 2010), Alexander C. Escucha, Rhodora Z. Canto,
Rabboni Francis B. Arjonillo (Effective February 2010) and Rene J. Sarmiento
CHINA BANK
42
2009 ANNUAL REPORT
NANCY D. YANG, 70, Senior Vice President since

1995, is the Head of the Branch Banking Group and
Binondo Business Center. She joined the Bank in 1963,
occupying various positions. She holds a Bachelor of
Arts degree from the Philippine Womens University
and a post graduate scholarship grant in Human
Development & Child Psychology from Merrill Palmer
Institute in Detroit, Michigan, USA in 1961. She has
attended the Allen Management Program in 1990,
Environmental Risk Management Program for Bankers
conducted by the Bank of America in 1997, BAI Retail
Delivery Conference in Miami Beach, Florida in 1999,
and BAI Retail Delivery Conference in Orlando, Florida
in 2008. She is a Director of China Bank Insurance
Brokers, Inc. (CBIB) and Vice Chairman of China Bank
Savings, Inc. (ChinaBank Savings). Ms. Yang is related
within the second civil degree of consanguinity to Mr.
Peter S. Dee, President & CEO.
SAMUEL L. CHIONG, 60, Senior Vice President since
2004, is the Deputy Group Head of Branch Banking
Group. He has been with the Bank since 1984. He
obtained a Bachelor of Arts degree in Economics from
Ateneo de Manila University and took the Advanced
Bank Management Program of the Asian Institute
of Management (AIM) in 1989. He attended the BAI
Retail Delivery Conference in Las Vegas, USA in 2006.
Prior to joining the Bank, he was connected with The
Consolidated Bank & Trust Corporation and State
Investment House, Inc. He is presently a Director/
Treasurer of PCCI and CBIB. He is also the Director/
President of ChinaBank Savings.
ANTONIO S. ESPEDIDO, JR., 54, Senior Vice President
since 2004, is the Head of Treasury Group. He holds a
from the University of San Francisco. He has had
trainings, both here and abroad, on the various facets of
Treasury Operation, Fund and Portfolio Management. He
was connected with the Bank of the Philippine Islands
(BPI) from 1980 to 1995, Citytrust (which was acquired
by BPI in 1997) from 1995 to 2004 and ACI Phils. (Forex)
as Director from 1996 to 1997. He is currently a Director
of CBC Forex and ChinaBank Savings.
CHINA BANK
RAMON R. ZAMORA, 61, Senior Vice President since

2004, is the Group Head of Centralized Operations Group,
Head of Remittance Business Division, and concurrent
Head of Correspondent Banking. He joined the Bank in
1997 after 25 years of banking experience from Citibank
N.A. where he held various executive positions: Vice
President of the Operations Group, Senior Relationship
Manager and Credit Officer of the Marketing Group, and
VP for Global Transaction Banking covering South Asia
Citibank N.A. branches. He was also a lecturer for the
Ateneo-Bankers Association of the Philippines Institute
of Banking. He obtained his Bachelor of Arts degree
in Economics from the Ateneo de Manila University.
He is concurrently a Director of CBC Forex, PCCI, and
ChinaBank Savings.
RHODORA Z. CANTO, 60, Senior Vice President since
2008, is the Head of Credit Management Group. She was
the Banks consultant from 2001 to 2004. Prior to joining
the Bank, she was Vice President of Citicorp Investment
Phils., Vice President and Chief Operating Officer of
City Trust Banking Corp., Director and President of BPI
Securities Corporation from 1996 to 1997, and Director of
Philippine Business Bank from 2000 to 2001. A certified
public accountant (CPA), she obtained her Bachelor of
Science degree in Business Administration, Major in
Accounting, from the University of the Philippines and
her Masters in Business Management from AIM in 1975.
She is a director of ChinaBank Savings.
MARGARITA L. SAN JUAN, 56, Senior Vice President
since 2008, is the Head of Account Management Group.
She started with the Bank as Account Officer in 1980,
was promoted to Senior Account Officer (Manager II) in
1983, Assistant Vice President in 1985, Vice President
in 1988, First Vice President I in 1997, and First Vice
President II in 2006. She was previously connected with
Ayala Investment and Development Corporation and with
Commercial Bank and Trust Co. She holds a Bachelor
of Science degree in Business Administration, Major
in Financial Management, from the University of the
Philippines. She took the Advanced Bank Management
Program of AIM in 1992. She is a Director of ChinaBank
Savings.
43
2009 ANNUAL REPORT
RABBONI FRANCIS B. ARJONILLO, 51, Senior Vice

President, is the Chief Risk Officer and Head of the Risk
Management Group. He has over 20 years of banking
experience gained from Citibank, N.A., BPI and United
Coconut Planters Bank. Prior to joining China Bank
in 2010, he was Citibank Australias Consumer Bank
Treasurer and before that, he was Citibank Vietnams
Country Treasurer and FICC Head, during which time he
founded and became the first chairman of Vietnam Bond
Market Association, an association of all the banks in
Vietnam trading fixed income instruments. He was also
a former Director and President of the Money Market
Association of the Philippines and Director and VicePresident of ACI Phils (Forex). He has a Bachelor of Arts
(Accelerated Program) degree in Economics from De La
Salle University and a Masters in Business Management
degree from AIM. In 1979, he founded and became
the first president of the Philippine Junior Economics
Society.
RENE J. SARMIENTO, 56, First Vice President since
2002, is the Head of the Trust Group. He was appointed
as the Vice President of the Trust Group in 1994. Before
joining the Bank, he occupied several positions in Ayala
Investment and Development Corporation, Far East Bank
& Trust Company and Security Bank Corporation. He
obtained his Bachelor of Science degree in Commerce,
Major in Accounting, magna cum laude, from De La Salle
University and his Masters in Business Management from
AIM in 1978. He is a Director of ChinaBank Savings.
CHINA BANK
ALEXANDER C. ESCUCHA, 53, First Vice President

since 2002, is the Corporate Planning Division Head
and the Banks Investor Relations Officer and Corporate
Information Officer. He joined the Bank as Vice President
in 1994. He holds a Bachelor of Arts degree in Economics,
cum laude, from the University of the Philippines. Prior to
joining the Bank, he was Vice President of International
Corporate Bank. He was President of the Corporate
Planning Society of the Philippines (CPSP) in 1989 and
President of the Bank Marketing Association of the
Philippines (BMAP) from 1998 to 1999. In 2005, he
was President of the Philippine Economic Society (PES)
and concurrently Chairman of the Federation of ASEAN
Economic Associations (FAEA). He is an international
resource person at The Asian Banker. He is also a member
of the Board of Trustees of UP Visayas Foundation, Inc.
and Chairman of its Finance Committee, and a Director
of ChinaBank Savings.
ALBERTO EMILIO V. RAMOS, 50, First Vice President,
is the Head of Private Banking Group. He obtained his
Bachelor of Arts degree in Political Science and Bachelor
of Science degree in Marketing Management from De
La Salle University in 1981, and his Masters in Business
Management from AIM in 1986. He has over 20 years of
work experience gained largely from the banking industry
in the Philippines and the United States. Prior to joining
the Bank in 2006, he held several executive positions in
PhilAm Asset Management, Inc., BPI, Citytrust Banking
Corporation, Western State Bank, Tokai Bank of California,
Urban Development Bank and Filinvest Credit Corporation.
He is a recipient of the Treasury Professional Certificate
from the Bankers Association of the Philippines. He has
also attended trainings on credit and financial analysis,
performance appraisal and asset-liability management,
Treasury products, and strategic marketing planning.
44
2009 ANNUAL REPORT
Vice Presidents
From left:
Manuel M. Te, Gerard E. Reonisto, Corazon I. Morando, Dante T. Fuentes, Elaine Marisa L. Ong, Henry D. Sia, Philip S.L. Tsai, Lydia Y. Yu,
Shew Kou Y. Lee, Elizabeth C. Say, Danilo V. Ochengco, Roberto C. Uyquiengco, Delia Marquez, Marisol M. Teodoro, Omar D. Vigilia,
Gerard T. Dee, Anna Maria P. Ylagan and Antonio Owen S. Maramag
From left:
Patrick U. Go, Ma. Rosanna L. Testa, Shirley G.K.T. Tan, Madelyn V. Fontanilla, Maria Luz B. Favis, Melissa F. Corpus,
Agustin E. Dingle, Jr., Editha N. Young, Emmanuel C. Geronimo, Rosemarie C. Gan, Phillip M. Tan, Lilibeth R. Cario,
Augusto P. Samonte, Jenny R. Amisola, Jose Leslie P. Javier, Angela D. Cruz, Layne Y. Arpon and Vichelli Churchill T. Say
CHINA BANK
45
2009 ANNUAL REPORT
CONTENTS
Managements Discussion on
Results of Operations and
Financial Condition
47
Report of the Audit Committee

to the Board of Directors
48
Management Responsibility for

49
Independent Auditors Report
50
51
Balance Sheets
Statements of Income
Statements of Comprehensive
Income
Statements of Changes in Equity
Statements of Cash Flows
Notes to Financial Statements
58
CHINA
CHI
HINA
N BANK
46
2009 ANNUAL REP

REPORT
EPORT
O
MANAGEMENTS DISCUSSION ON RESULTS OF OPERATIONS AND FINANCIAL CONDITION
FINANCIAL CONDITION
ASSETS
China Banks total assets expanded by 12.22% from P208.55 billion to P234.04 billion mainly from higher liquid assets which were supported
by growth in deposits. Total liquid assets increased by 31.71%, while deposits expanded by 11.23%, driven by another year of record build up in
low cost deposits.
SECURITIES & INVESTMENTS
Total investment securities (FAVPL, AFS & HTM) reached P72.47 billion, 29.26% higher than 2008. Financial Assets at Fair Value through Profit or
Loss (FAVPL) and Available-for-Sale Financial Assets (AFS) grew by 82.03% and 53.59% respectively as funds were channeled to higher-yielding
dollar and peso securities to capitalize on the declining interest rate environment and improved market conditions. Held-to-Maturity Financial
Assets (HTM) fell by 7.10% from maturity of government bond holdings.
Interbank loans receivables and securities purchased under resale agreements expanded to P11.98 billion, 172.34% higher than 2008 as excess
liquidity funds were placed in overnight lending/placements with BSP.
LOANS
Loans and Receivables (net, inclusive of unquoted debt securities) dropped by 0.42% to P110.37 billion from P110.84 billion in 2008 as the
Bank vigorously pursued collection of past due accounts, improved collateral positions and re-evaluated existing credit lines towards the end of
2009. The uptrend in corporate bond issuances also tempered growth in traditional wholesale lending. Still, gross loan portfolio from customers
grew by 10% on an average daily basis mainly from demand from the corporate and consumer sectors. Non-performing loans (NPL) ratio also
improved to 4.16% as NPL volume declined by almost P1.5 billion.
Year-on-year, the Bank booked P792 million for provision for impairment and credit losses as a buffer against normal lending risks and in the
process, boosted the total loan loss reserves to P7.04 billion and loan loss coverage ratio from 88.06% in 2008 to 119.54% in 2009.
DEPOSITS
Total customer deposits grew by 11.23% from P173.78 billion in 2008 to P193.29 billion in 2009 as both demand and time deposits expanded.
Low cost deposit (CASA) levels were up by 27%, mainly due to higher volume of demand deposits. The sustained branch marketing efforts and
expansion of the branch network resulted in improved ratio of CASA to total peso deposits of 41.62% from 34.36% last year. Time deposits
grew by 21.67% from P45.39 billion to P55.23 billion from higher volume of dollar denominated deposits.
CAPITAL
Total capital funds improved 17.36% to P30.37 billion, translating to a tier 1 capital adequacy ratio (CAR) of 11.92% and total CAR of 12.80%.
RESULTS OF OPERATION
China Bank registered a consolidated net income of P4.10 billion for 2009, a 40.64% improvement from last years P2.92 billion as higher
revenues offset the increase in operating expenses and provision for impairment and credit losses. The Bank continued to be among the most
profitable banks in the country with return on equity at 15.36% and return on assets at 1.90%.
INTEREST INCOME
Gross interest income climbed by 8.10% from 2008 as a result of the combined increase in interest income from loans and trading and
investments securities. Higher average loan volume from the corporate and consumer lending side led to the growth in interest income from
loans & receivables by 4.55% to P4.54 billion. Likewise, despite the drop in yields, interest income from trading and investments also grew by
17.15% spurred by higher volume of government bonds. Gross interest expense fell by 12.02% to P5.17 billion in 2009 from better funding mix
and declining peso and dollar borrowing rates. Consequently, net interest income grew by 26.24% to P8.24 billion in 2009.
Net interest margin improved by 34 bps to 4.16% in 2009 from lower borrowing rates and higher share of low-cost deposits while maximizing
yield on interest accruing assets.
NON-INTEREST INCOME
Non-interest income increased by P1.96 billion or by 91.54% from 2008. The declining interest rate environment and sustained bond market
recovery resulted in a turnaround in mark-to-market valuation and presented trading opportunities that boosted trading and securities gain to
P1.19 billion.
Higher margins from currency trading and income from swaps contributed to the growth in foreign exchange gain by 307.39% to P807.85 million.
Gain on asset foreclosure & dacion transactions and miscellaneous income contributed P243.37 million and P347.86 million respectively.
OPERATING EXPENSES
Operating expenses (excluding provision for impairment and credit losses) grew by 34.18% or P1.77 billion from 2008 from the on-going branch
expansion, technology upgrades and other marketing & advertising related costs. Cost to income ratio improved to 56.30% in 2009 vs. 59.74%
in 2008 as higher revenues more than covered the additional cost of branch expansion, hiring and capital investments.
CHINA BANK
47
2009 ANNUAL REPORT
REPORT OF THE AUDIT COMMITTEE TO THE BOARD OF DIRECTORS
The Audit Committees organization, authority, and duties and responsibilities are defined in the Charter of Audit Committee as contained
in the Manual on Corporate Governance and approved by the Board of Directors. It primarily oversees the Banks internal audit function
and performance, integrity of the Banks financial statements, and accounting processes, as it provides oversight on senior managements
activities, as well as the Banks internal and external auditors and monitors and evaluates the adequacy and effectiveness of the Banks
internal control system. In particular, the Committee (a) reviews and discusses with management and external auditors the annual audited
financial statements, (b) reviews and discusses with management, external auditors and internal audit the managements assessment of the
adequacy of internal controls, internal control reports (management letters), internal control issues noted during audits, and effectiveness of
the information technology security, (c) selects and appoints the external auditors after evaluation of their qualifications, performance and
independence, subject to stockholder ratification, and (d) reviews and concurs in the appointment and replacement of the internal auditor,
approves the annual audit plan and budget, and reviews and discusses internal audit reports, managements responses and corrective actions
on significant audit findings.
In compliance with the Charter of Audit Committee, we confirm that:
The Audit Committee is composed of three (3) members of the Board of Directors, two (2) of whom are independent directors, including
the Chairman;
We had thirteen (13) meetings during the year 2009;
We have discussed with management and external auditors the audited financial statements of the Bank and Subsidiaries and approved
the same before submission to the Board of Directors;
We have reviewed and approved the audit fees of SGV & Co., which include other assurance and related services that are reasonably
related to the performance of the audit or review of the Banks financial statements, as well as other related fees;
Apart from the matter of the audit fees, we have approved to engage the services of SGV & Co. in non-audit work, such as the riskbased audit training of Bank employees, and discussed the engagement in relation to the implementation of the internal capital adequacy
assessment process (ICAAP) to comply with the requirements of BSP Circular No. 639.
We have reviewed and discussed the internal audit reports and managements responses to ensure that appropriate corrective actions
are taken especially on significant audit findings.
Based on the reviews and discussions made by the Audit Committee, and subject to the limitations on our roles and responsibilities referred
to in the Charter, we recommend to the Board of Directors that the audited financial statements be included in the Annual Report for the year
ended December 31, 2009.
17 March 2010
ALBERTO S. YAO
Chairman
JOAQUIN T. DEE
Member
CHINA BANK
48
2009 ANNUAL REPORT
ROBERT F. KUAN
Member
MANAGEMENT RESPONSIBILITY FOR FINANCIAL STATEMENTS
The Management of China Banking Corporation is responsible for all information and representations contained in the consolidated financial
statements of China Banking Corporation and Subsidiaries for the years ended December 31, 2009 and 2008. The financial statements have
been prepared in conformity with generally accepted accounting principles and reflect amounts that are based on best estimates and informed
judgment of management with an appropriate consideration of materiality.
In this regard, management maintains a system of accounting and reporting which provides for the necessary internal controls to ensure that
transactions are properly authorized and recorded, assets are safeguarded against unauthorized use or disposition and liabilities are recognized.
The management likewise discloses to the companys audit committee and to its external auditor: (i) all significant deficiencies in the design or
operation of internal controls that could adversely affect its ability to record, process, and report financial data; (ii) material weaknesses in the
internal controls; and (iii) any fraud that involves management or other employees who exercise significant roles in internal controls.
The Board of Directors reviews the consolidated financial statements before such statements are approved and submitted to the stockholders
of the company.
Sycip Gorres Velayo & Co., the independent auditors appointed by the stockholders, have examined the consolidated financial statements of
the Company in accordance with generally accepted auditing standards and have expressed their opinion on the fairness of presentation upon
completion of such examination, in their report to stockholders.
Gilbert
Dee
Gilb
lber
lb
ertt U.
er
U D
ee
Peter S. Dee
President
P id
& CEO
Ricardo
Rica
ard
rdo R. Chua
Executive
E
xecutive Vice President & COO
Delia Marquez
Controller
Republic of the Philippines

Makati City S.S
Subscribed and sworn to before me this 15th day of March 2010, affiants exhibiting to me their Community Tax Certificates Nos. as follows:
Name
Gilbert U. De
Peter S. Dee
Ricardo R. Chua
Delia Marquez
Community Tax Certificate No.

25720255
27066210
32722944
32722945
Date and Place of Issue

January 27, 2010, Manila
February 18, 2010, Manila
March 3, 2010, Mandaluyong
March 3, 2010, Mandaluyong
Doc. No.: 472
CARLA HONORA N. BORROMEO

Appt. No.M-39 until Dec 31, 2010
Page No: 97
Book No: 33
Series of: 2010
11th Floor, China Bank Bldg.

Paseo de Roxas, Makati City
PTR No.
CHINA BANK
49
2009 ANNUAL REPORT
INDEPENDENT AUDITORS REPORT
The Stockholders and the Board of Directors

China Banking Corporation
8745 Paseo de Roxas corner Villar Streets
Makati City
We have audited the accompanying financial statements of China Banking Corporation and Subsidiaries (the Group) and of China Banking
Corporation (the Parent Company) which comprise the balance sheets as at December 31, 2009 and 2008, and the statements of income,
statements of comprehensive income, statements of changes in equity and statements of cash flows for each of the three years in the period
ended December 31, 2009, and a summary of significant accounting policies and other explanatory notes.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with Philippine Financial
Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and
fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying
appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with
Philippine Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entitys
preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Group and of the Parent Company
as of December 31, 2009 and 2008, and their financial performance and their cash flows for each of the three years in the period ended
December 31, 2009 in accordance with Philippine Financial Reporting Standards.
SYCIP GORRES VELAYO & CO.
Josephine Adrienne A. Abarca

Partner
CPA Certificate No. 92126
SEC Accreditation No. 0466-AR-1
Tax Identification No. 163-257-145
PTR No. 2087359, January 4, 2010, Makati City
March 3, 2010
CHINA BANK
50
2009 ANNUAL REPORT
BALANCE SHEETS
Consolidated
2009
ASSETS
Cash and Other Cash Items (Note 15)
Due from Bangko Sentral ng Pilipinas (Note 15)
Due from Other Banks
Interbank Loans Receivable and Securities
Purchased Under Resale Agreements
Financial Assets at Fair Value through Profit
or Loss (Notes 8 and 23)
Available-for-Sale Financial Assets (Note 8)
Held-to-Maturity Financial Assets (Note 8)
Loans and Receivables - net (Notes 9 and 15)
Accrued Interest Receivable (Note 27)
Investment in Subsidiaries (Note 10)
Investment in Associates (Note 10)
Bank Premises, Furniture, Fixtures and
Equipment - net (Note 11)
Investment Properties - net (Note 12)
Deferred Tax Assets - net (Note 25)
Branch Licenses (Notes 4 and 13)
Goodwill (Notes 4 and 13)
Other Assets - net (Notes 13 and 22)
LIABILITIES AND EQUITY

Liabilities
Deposit Liabilities (Note 15)
Demand
Savings
Time
Bills Payable (Note 16)
Managers Checks
Income Tax Payable
Accrued Interest and Other Expenses (Note 17)
Derivative Liabilities (Note 23)
Other Liabilities (Note 18)
Equity
Equity Attributable to Equity Holders of the
Parent Company
Capital stock (Note 21)
Capital paid in excess of par value
Surplus reserves (Notes 21 and 26)
Surplus (Notes 21 and 26)
Net unrealized gains (losses) on available-for-sale
financial assets (Note 8)
Revaluation increment on land (Note 11)
Cumulative translation adjustment (Note 2)
Minority Interest
Parent Company
December 31
2008
2009
2008
P5,795,456,440
11,621,324,385
6,770,243,850
P4,075,518,568
13,708,932,849
4,236,588,224
P5,756,920,133
11,553,930,023
6,761,701,623
P4,049,328,721
13,595,936,653
4,217,016,260
11,983,000,000
4,400,000,000
11,848,000,000
4,020,000,000
4,941,094,347
45,469,945,900
22,061,384,803
110,371,291,557
2,118,893,167
16,980,869
2,714,408,153
29,604,059,307
23,746,746,657
110,839,234,244
2,048,826,889
14,480,869
4,941,094,347
44,720,167,378
21,978,204,803
109,514,922,954
2,091,795,107
1,176,766,030
13,745,839
2,714,408,153
29,037,329,875
23,746,746,657
109,801,828,670
2,034,127,047
1,162,996,449
11,245,838
4,788,969,092
3,867,044,526
913,889,002
477,600,000
222,841,201
2,615,656,615
P234,035,615,754
4,502,014,439
4,008,549,702
912,376,456
477,600,000
222,841,201
3,034,876,449
P208,547,054,007
4,123,193,855
3,698,256,363
907,976,993
450,501,931
222,841,201
2,304,807,487
P232,064,826,067
3,886,411,840
3,888,334,928
907,976,993
450,501,931
222,841,201
2,524,974,257
P206,272,005,473
P39,015,538,167
99,044,894,877
55,229,606,202
193,290,039,246
5,785,671,652
453,821,513
9,713,366
1,863,118,162
338,810,138
1,925,945,933
203,667,120,010
P29,508,842,244
98,875,856,792
45,394,557,054
173,779,256,090
3,905,463,047
350,047,881
32,137,748
1,949,803,426
392,753,694
2,260,904,483
182,670,366,369
P38,889,388,674
97,849,978,523
55,059,978,174
191,799,345,371
5,785,671,652
433,396,469
9,713,366
1,834,724,666
338,810,138
1,816,069,096
202,017,730,758
P29,397,659,388
97,316,444,781
45,181,552,841
171,895,657,010
3,905,463,047
347,316,610
29,665,957
1,920,427,014
392,753,694
2,178,859,554
180,670,142,886
9,750,877,200
671,504,726
580,157,846
17,680,962,956
8,864,346,900
671,504,726
534,463,875
15,576,490,537
9,750,877,200
671,504,726
580,157,846
17,397,010,556
8,864,346,900
671,504,726
534,463,875
15,371,865,720
427,495,719
1,277,277,435
(53,888,861)
30,334,387,021
34,108,723
30,368,495,744
P234,035,615,754
(1,208,049,246)
1,277,277,435
83,944,076
25,799,978,303
76,709,335
25,876,687,638
P208,547,054,007
424,156,407
1,277,277,435
(53,888,861)
30,047,095,309
30,047,095,309
P232,064,826,067
(1,201,540,145)
1,277,277,435
83,944,076
25,601,862,587
25,601,862,587
P206,272,005,473
See accompanying Notes to Financial Statements.
CHINA BANK
51
2009 ANNUAL REPORT
STATEMENTS OF INCOME
Consolidated
INTEREST INCOME
Loans and receivables (Note 9)
Trading and investments (Note 8)
Due from BSP and other banks
INTEREST EXPENSE
Deposit liabilities (Notes 15 and 27)
Bills payable and other borrowings
(Note 16)
NET INTEREST INCOME
Trading and securities gain/(loss)
- net (Notes 8 and 19)
Service charges, fees and
commissions (Note 27)
Foreign exchange gain - net
Trust fee income (Note 26)
Gain on asset foreclosure and
dacion transactions (Note 12)
Gain on sale of investment properties
Miscellaneous
TOTAL OPERATING INCOME
Compensation and fringe benefits
(Notes 22 and 27)
Provision for impairment and
credit losses (Note 14)
Taxes and licenses
Occupancy (Note 24)
Depreciation and amortization
(Notes 11 and 12)
Stationery, supplies and postage
Insurance
Repairs and maintenance
Transportation and traveling
Entertainment, amusement and
recreation
Professional fees, marketing and
other related services
Miscellaneous
TOTAL OPERATING EXPENSES
INCOME BEFORE INCOME TAX
PROVISION FOR INCOME TAX
(Note 25)
NET INCOME (Note 30)
Attributable to:
Equity holders of the parent
Minority interest
Basic/Diluted Earnings Per Share
(Note 30)
Parent Company
Years Ended December 31
2007
2009
2009
2008
2008
2007
P8,346,871,977
4,539,476,971
523,501,914
13,409,850,862
P7,983,240,388
3,875,006,694
546,756,686
12,405,003,768
P6,746,085,117
4,256,419,755
434,815,447
11,437,320,319
P8,226,058,576
4,493,234,086
443,746,979
13,163,039,641
P7,831,628,017
3,836,203,087
526,515,163
12,194,346,267
P6,556,151,321
4,240,246,971
425,869,463
11,222,267,755
4,920,273,594
5,724,581,982
4,732,569,654
4,840,281,437
5,623,549,725
4,634,729,571
253,540,545
5,173,814,139
8,236,036,723
156,207,012
5,880,788,994
6,524,214,774
208,329,194
4,940,898,848
6,496,421,471
253,536,031
5,093,817,468
8,069,222,173
155,548,758
5,779,098,483
6,415,247,784
189,516,524
4,824,246,095
6,398,021,660
1,188,455,664
(100,950,079)
618,927,037
1,188,455,664
(100,950,079)
618,084,842
996,138,359
807,845,249
458,083,159
1,002,569,609
198,297,081
473,563,824
838,156,542
222,270,038
478,824,847
952,619,656
807,910,971
456,939,706
897,670,614
197,243,728
471,660,595
741,922,640
222,704,822
478,084,152
243,365,389
62,738,489
347,858,849
12,340,521,881
140,989,758
130,285,317
298,166,759
8,667,137,043
58,417,105
44,013,840
411,524,080
9,168,554,960
239,975,032
61,995,153
256,432,229
12,033,550,584
140,989,758
130,285,317
244,709,435
8,396,857,152
58,417,105
44,013,840
381,692,197
8,942,941,258
2,488,128,768
1,850,947,925
1,888,696,923
2,390,506,003
1,777,172,169
1,789,624,879
792,384,146
741,284,343
720,891,802
306,709,527
593,569,703
612,181,624
300,578,001
599,887,338
503,958,628
792,384,146
717,876,859
707,454,474
306,709,527
580,033,576
606,467,779
300,516,878
580,462,173
502,223,782
667,970,722
450,100,503
436,982,823
366,043,443
289,430,953
470,987,686
428,994,011
348,874,560
218,690,515
179,364,198
381,589,101
324,520,304
329,506,720
272,141,327
166,510,229
645,432,778
435,765,940
432,826,542
360,202,825
283,426,518
462,217,764
423,875,350
348,666,629
217,876,034
176,654,058
365,423,133
319,155,128
325,210,317
271,508,216
164,832,100
252,122,103
161,255,582
158,187,697
247,113,568
159,559,292
156,740,528
222,616,409
312,427,517
7,740,383,532
4,600,138,349
101,273,242
211,855,786
5,484,704,359
3,182,432,684
109,765,724
259,523,142
5,294,865,134
3,873,689,826
220,307,349
294,269,289
7,527,566,291
4,505,984,293
97,924,348
159,337,962
5,316,494,488
3,080,362,664
103,762,521
207,259,240
5,086,718,895
3,856,222,363
497,509,028
P4,102,629,321
265,244,676
P2,917,188,008
192,254,802
P3,681,435,024
484,893,558
P4,021,090,735
255,142,158
P2,825,220,506
188,932,411
P3,667,289,952
P4,100,418,318
2,211,003
P4,102,629,321
P2,914,639,364
2,548,644
P2,917,188,008
P3,682,643,904
(1,208,880)
P3,681,435,024
P4,021,090,735
P4,021,090,735
P2,825,220,506
P2,825,220,506
P3,667,289,952
P3,667,289,952
P42.07
P29.92
P37.75
CHINA BANK
52
2009 ANNUAL REPORT
STATEMENTS OF COMPREHENSIVE INCOME
Consolidated
Net Income
Other Comprehensive
Income (Loss):
Net unrealized gain (loss) on availablefor-sale investments (Note 8)
Cumulative translation adjustment
Other Comprehensive Income
(Loss) for the Year, net of tax
Total Comprehensive Income
for the Year
Total Comprehensive Income
attributable to:
Equity holders of the Parent
Company
Minority Interest
Parent Company
Years Ended December 31
2007
2009
P3,681,435,024
P4,021,090,735
2009
P4,102,629,321
2008
P2,917,188,008
2008
P2,825,220,506
2007
P3,667,289,952
1,635,544,965
(137,832,937)
(2,258,534,911)
83,944,076
(521,805,403)
1,625,696,552
(137,832,937)
(2,236,326,212)
83,944,076
(524,367,342)
1,497,712,028
(2,174,590,835)
(521,805,403)
1,487,863,615
(2,152,382,136)
(524,367,342)
P5,600,341,349
P742,597,173
P3,159,629,621
P5,508,954,350
P672,838,370
P3,142,922,610
P5,598,130,346
2,211,003
P5,600,341,349
P740,048,529
2,548,644
P742,597,173
P3,160,838,501
(1,208,880)
P3,159,629,621
CHINA BANK
53
2009 ANNUAL REPORT
STATEMENTS OF CHANGES IN EQUITY
Balance at December 31, 2008

Total comprehensive income for the year
Share of minority interest in China Bank
Savings net assets
Additional acquisition of minority (Note 4)
Transfer from surplus to surplus reserves (Note 26)
Stock dividends - 10% (Note 21)
Cash dividends - P12 per share (Note 21)
Savings net assets
Additional acquisition of minority (Note 4)
Savings net assets
Transfer from surplus to surplus reserves
Capital Stock
(Note 21)
P8,864,346,900
Capital Paid
Excess of Par
Value
P671,504,726
Surplus
Reserves
(Note 21 and 26)
P534,463,875
Surplus
(Note 21 and 26)
P15,576,490,537
4,100,418,318
886,530,300
P9,750,877,200
7,708,042,600
P671,504,726
671,504,726
45,693,971
P580,157,846
487,298,048
(45,693,971)
(886,530,300)
(1,063,721,628)
P17,680,962,956
15,406,929,820
2,914,639,364
1,156,304,300
P8,864,346,900
6,166,376,500
P671,504,726
671,504,726
47,165,827
P534,463,875
442,623,071
(47,165,827)
(1,156,304,300)
(1,541,608,520)
P15,576,490,537
14,852,221,118
3,682,643,904
1,541,666,100
P7,708,042,600
P671,504,726
44,674,977
P487,298,048
(44,674,977)
(1,541,666,100)
(1,541,594,125)
P15,406,929,820
Capital
Stock
(Note 21)
P8,864,346,900
886,530,300
P9,750,877,200
P7,708,042,600
1,156,304,300
P8,864,346,900
P6,166,376,500
1,541,666,100
P7,708,042,600
Capital Paid
Excess of Par
Value
P671,504,726
P671,504,726
P671,504,726
P671,504,726
P671,504,726
P671,504,726
Surplus
Reserves
(Note 21 and 26)
P534,463,875
45,693,971
P580,157,846
P487,298,048
47,165,827
P534,463,875
P442,623,071
44,674,977
P487,298,048

CHINA BANK
54
2009 ANNUAL REPORT
Consolidated
Equity Attributable to Equity Holders of the Parent Company
Net
Unrealized Gains
(Losses) On
Revaluation
Cumulative
Available-forIncrement
Translation
Sale Financial
on Land
Adjustments
Assets (Note 8)
(Note 11)
(Note 2)
(P1,208,049,246)
P1,277,277,435
P83,944,076
1,635,544,965
(137,832,937)
Total
P25,799,978,303
5,598,130,346
Minority
Interest
P76,709,335
2,211,003
Total
Equity
P25,876,687,638
5,600,341,349
P427,495,719
1,050,485,665
(2,258,534,911)
P1,277,277,435
1,277,277,435
(P53,888,861)
83,944,076
(1,063,721,628)
P30,334,387,021
26,601,538,294
740,048,529
16,224
(44,827,839)
P34,108,723
133,502,948
2,548,644
16,224
(44,827,839)
(1,063,721,628)
P30,368,495,744
26,735,041,242
742,597,173
(P1,208,049,246)
1,572,291,068
(521,805,403)
P1,277,277,435
1,277,277,435
P83,944,076
(1,541,608,520)
P25,799,978,303
24,982,293,918
3,160,838,501
54,700
(59,396,957)
P76,709,335
(1,208,880)
54,700
(59,396,957)
(1,541,608,520)
P25,876,687,638
24,982,293,918
3,159,629,621
P1,050,485,665
134,711,828
P133,502,948
134,711,828
P1,277,277,435
(1,541,594,125)
P26,601,538,294
Net Unrealized
Gains (Losses) On
Available-forSale Financial
Assets (Note 8)
P(1,201,540,145)
1,625,696,552
P424,156,407
P1,034,786,067
(2,236,326,212)
(P1,201,540,145)
P1,559,153,409
(524,367,342)
P1,034,786,067
Revaluation
Increment
on Land
(Note 11)
P1,277,277,435
P1,277,277,435
P1,277,277,435
P1,277,277,435
P1,277,277,435
P1,277,277,435
Cumulative
Translation
Adjustments
(Note 2)
P83,944,076
(137,832,937)
(P53,888,861)
P
83,944,076
P83,944,076
P
Parent Company
Surplus
(Note 21 and 26)
P15,371,865,720
4,021,090,735
(45,693,971)
(886,530,300)
(1,063,721,628)
P17,397,010,556
P15,291,723,861
2,825,220,506
(47,165,827)
(1,156,304,300)
(1,541,608,520)
P15,371,865,720
P14,752,369,111
3,667,289,952
(44,674,977)
(1,541,666,100)
(1,541,594,125)
P15,291,723,861
CHINA BANK
55
2009 ANNUAL REPORT
Total
Equity
P25,601,862,587
5,508,954,350
(1,063,721,628)
P30,047,095,309
P26,470,632,737
672,838,370
(1,541,608,520)
P25,601,862,587
P24,869,304,252
3,142,922,610
(1,541,594,125)
P26,470,632,737
(1,541,594,125)
P26,735,041,242
STATEMENTS OF CASH FLOWS
Consolidated
2009
CASH FLOWS FROM
OPERATING ACTIVITIES
Income before income tax
P4,600,138,349
Adjustments for:
792,384,146
(Notes 11 and 12)
667,970,722
Gain on sale of investment
properties
(62,738,489 )
Gains on asset foreclosures and
dacion transactions
(243,365,389 )
Net unrealized losses (gains)
on financial assets at FVPL
(667,430,793 )
Changes in operating assets
and liabilities:
Decrease (increase) in the
amounts of:
Financial assets at FVPL
(1,697,088,338 )
Loans and receivables
(717,889,596 )
Other assets
331,894,029
Increase (decrease) in the
amounts of:
Deposit liabilities
19,510,783,156
Managers checks
103,773,632
Accrued interest and
other expenses
(86,685,264 )
Other liabilities
(388,902,106 )
Net cash provided by operations
22,142,844,059
Income taxes paid
(519,933,410 )
Net cash provided by
operating activities
21,622,910,649
CASH FLOWS FROM
INVESTING ACTIVITIES
Additions to bank premises, furniture,
fixtures and equipment (Note 11)
(712,134,538 )
Proceeds from disposal of
bank premises, furniture, fixtures
and equipment (Note 11)
27,631,519
Proceeds from sale of
investment properties
541,570,200
Additions to equity investments
(2,500,000 )
Proceeds from sale of equity investment
Acquisition through business

combination - net of cash
acquired (Note 4)
Purchases of:
Held-to-maturity financial assets
2,248,737,943
Available-for-sale financial assets
70,996,654,286
Proceeds from sale/Maturity of:
(563,376,089 )
(85,226,995,913 )
Net cash used in investing
activities
(12,690,412,592 )
(Forward)
Parent Company
December 31
2007
2008
2009
2008
2007
P3,182,432,684
P3,873,689,826
P4,505,984,293
P3,080,362,664
P3,856,222,363
306,709,527
300,578,001
792,384,146
306,709,527
300,516,878
470,987,686
381,589,101
645,432,778
462,217,764
365,423,133
(130,285,317 )
(44,013,840 )
(61,995,153 )
(130,285,317 )
(44,013,840)
(140,989,758 )
(58,417,105 )
(239,975,032 )
(140,989,758 )
(58,417,105)
120,382,079
338,519,198
(667,430,793 )
120,382,079
338,519,198
2,347,653,650
(24,065,779,691 )
(345,864,757 )
8,541,159,943
(17,567,039,570 )
(2,095,364,915 )
(1,697,088,338 )
(805,150,162 )
187,371,098
2,347,653,650
8,541,159,943
(24,243,908,552 ) (16,230,398,929)
(46,470,953 ) (2,098,318,241)
33,322,930,786
57,374,405
18,827,789,926
46,395,719
19,903,688,361
86,079,859
32,917,350,890
54,643,134
17,315,597,850
46,395,719
(1,189,384,855 )
(89,427,416 )
13,846,739,023
(368,197,345 )
407,100,363
(419,942,141 )
12,532,044,506
(262,215,185 )
(85,702,348 )
(416,734,014 )
22,146,864,695
(504,846,149 )
(1,205,081,157 )
(42,770,030 )
13,479,813,941
(360,538,882 )
397,053,838
(473,678,351)
12,256,062,456
(258,916,401)
13,478,541,678
12,269,829,321
21,642,018,546
13,119,275,059
11,997,146,055
(650,865,031 )
(1,337,216,539 )
(675,495,250 )
(649,188,351 )
(645,264,693)
37,447,346
113,214,581
27,494,943
33,685,522
60,411,530
754,107,282
(2,500,000 )
748,928,073
(8,745,838 )
33,500,000
532,633,608
(16,269,582 )
754,107,282
(37,957,735 )
748,928,073
(8,745,838)
33,500,000
(251,102,443 )
(4,745,639,804 )
(40,221,124,662 )
(950,472,000 )
(59,754,009,280 )
2,248,737,943
70,752,997,179
(4,745,639,804 )
(950,472,000)
(39,977,467,555 ) (57,736,767,228)
2,811,181,585
23,281,988,113
4,282,668,165
55,688,226,854
(480,196,089 )
(84,810,138,130 )
2,811,181,585
23,281,075,613
4,282,668,165
53,841,813,874
(18,735,405,171 )
(1,435,008,427 )
(12,420,235,378 )
(18,530,203,443 )
(1,548,888,906)
CHINA BANK
56
2009 ANNUAL REPORT
(1,174,960,789)
Consolidated
2009
2008
CASH FLOWS FROM
FINANCING ACTIVITIES
Payments of bills payable
(P8,536,204,766)
(P580,879,831)
Availments of bills payable
10,416,413,371
1,825,035,711
Payments of cash dividends (Note 21) (1,063,721,628)
(1,541,608,520)
Net cash used in financing
activities
816,486,977
(297,452,640)
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS 9,748,985,034
(5,554,316,133)
CASH AND CASH EQUIVALENTS
AT BEGINNING OF YEAR
Cash and other cash items
4,075,518,568
3,077,335,121
Due from Bangko Sentral ng Pilipinas
13,708,932,849
12,427,182,517
Due from other banks
4,236,588,224
4,649,838,136
Interbank loans receivable and securities
purchased under resale agreements
4,400,000,000
11,821,000,000
26,421,039,641
31,975,355,774
CASH AND CASH EQUIVALENTS
AT END OF YEAR
5,795,456,440
4,075,518,568
Due from Bangko Sentral ng Pilipinas
11,621,324,385
13,708,932,849
6,770,243,850
4,236,588,224
Interbank loans receivable and
securities purchased
under resale agreements
11,983,000,000
4,400,000,000
P36,170,024,675 P26,421,039,641
Parent Company
December 31
2007
2009
2008
2007
(P1,874,604,097)
707,253,768
(1,541,594,125)
(P8,536,204,766)
10,416,413,371
(1,063,721,628)
(P498,347,431) (P1,874,604,097)
1,825,035,711
624,721,368
(1,541,608,520) (1,541,594,125)
(2,708,944,454)
816,486,977
(214,920,240)
(2,791,476,854)
8,125,876,440
10,038,270,145
(5,625,848,624)
7,656,780,295
2,599,467,319
9,268,764,084
2,436,097,931
4,049,328,721
13,595,936,653
4,217,016,260
3,064,553,081
12,328,161,848
4,534,415,329
2,601,337,948
9,268,764,084
2,436,097,931
9,545,150,000
23,849,479,334
4,020,000,000
25,882,281,634
11,581,000,000
31,508,130,258
9,545,150,000
23,851,349,963
3,077,335,121
12,427,182,517
4,649,838,136
5,756,920,133
11,553,930,023
6,761,701,623
4,049,328,721
13,595,936,653
4,217,016,260
3,064,553,081
12,328,161,848
4,534,415,329
11,821,000,000
P31,975,355,774
11,848,000,000
P35,920,551,779
4,020,000,000 11,581,000,000
P25,882,281,634 P31,508,130,258
OPERATIONAL CASH FLOWS FROM INTEREST

Consolidated
Interest paid
Interest received
2009
P6,004,113,507
13,339,784,584
2008
P6,634,286,006
11,828,836,675
Parent Company
December 31
2007
2009
P4,506,588,024
P5,918,270,586
10,892,195,550
13,105,371,581
CHINA BANK
57
2009 ANNUAL REPORT
2008
P6,536,633,251
11,615,957,900
2007
P4,393,614,881
10,690,625,298
NOTES TO FINANCIAL STATEMENTS
1.
Corporate Information
China Banking Corporation (the Parent Company) is a publicly listed commercial bank incorporated in the Philippines. The Parent Company acquired its
universal banking license in 1991. It provides expanded commercial banking products and services such as deposit products, loans and trade finance,
domestic and foreign fund transfers, treasury products, trust products, foreign exchange, corporate finance and other investment banking services
through a network of 247 local branches.
The Parent Company has the following subsidiaries:
Subsidiary
Chinabank Insurance Brokers, Inc.
CBC Properties and Computer Center, Inc.
CBC Forex Corporation
China Bank Savings, Inc. (formerly
known as The Manila Banking Corporation) *
Effective Percentages of
Ownership
2009
2008
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
95.06%
94.33%
Country of
Incorporation
Philippines
Philippines
Philippines
Philippines
Principal Activities
Insurance brokerage
Computer services
Foreign exchange
Retail and consumer
banking
* China Bank Savings, Inc. was acquired in 2007 (see Note 4).
The Parent Companys principal place of business is at 8745 Paseo de Roxas corner Villar Streets, Makati City.
The accompanying consolidated and parent company financial statements were authorized for issue by the Parent Companys Board of Directors (BOD)
on March 3, 2010.
2.
Summary of Significant Accounting Policies

Basis of Preparation
The accompanying consolidated financial statements include the financial statements of the Parent Company and its subsidiaries (collectively referred to
as the Group).
The accompanying financial statements have been prepared on a historical cost basis except for financial assets at fair value through profit or loss (FVPL),
available-for-sale (AFS) financial assets, and derivative financial instruments that have been measured at fair value. The financial statements are presented
in Philippine pesos, and all values are rounded to the nearest peso except when otherwise indicated.
The financial statements of the Parent Company reflect the accounts maintained in the Regular Banking Unit (RBU) and Foreign Currency Deposit Unit
(FCDU). The financial statements of these units are combined after eliminating inter-unit accounts.
Statement of Compliance
The financial statements of the Group and the Parent Company have been prepared in compliance with Philippine Financial Reporting Standards (PFRS).
Basis of Consolidation and Investments in Subsidiaries
The consolidated financial statements of the Group are prepared for the same reporting year as the Parent Company, using consistent accounting
policies.
Subsidiaries are all entities over which the Parent Company has the power to govern the financial and operating policies generally accompanying a
shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are
considered when assessing whether the Parent Company controls another entity.
All significant intra-group balances, transactions, income and expenses and profits and losses resulting from intra-group transactions are eliminated in full
or to the extent of the Parent Companys equity interest in the consolidation.
Subsidiaries are fully consolidated from the date on which control is transferred to the Parent Company. Control is achieved where the Parent Company
has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Consolidation of subsidiaries ceases
when control is transferred out of the Group or Parent Company.
In the separate or parent company financial statements, investments in subsidiaries are carried at cost, less accumulated impairment in value. Dividends
earned on these investments are recognized in the Parent Companys statement of income as declared by the respective BOD of the investees.
Minority Interest
Minority interest represents the portion of profit or loss and net assets not owned, directly or indirectly, by the Parent Company and are presented
separately in the consolidated statement of income, statement of comprehensive income, and within equity in the consolidated balance sheet, separately
from parent shareholders equity. Acquisitions of minority interests are accounted for using the parent entity extension method, where, the difference
between the consideration and the fair value of the share of the net assets acquired is recognized as goodwill. Any deficiency of the cost of acquisition
CHINA BANK
58
2009 ANNUAL REPORT
below the fair values of the identifiable net assets acquired (i.e., a discount on acquisition) is recognized directly in the statement of income in the year
of acquisition.
Changes in Accounting Policies
The accounting policies adopted are consistent with those of the previous financial year except for the adoption of the following new and amended PFRS
and Philippine Interpretations which became effective on January 1, 2009:
New Standards
PAS 1, Presentation of Financial Statements (Revised)
PAS 23, Borrowing Costs (Revised)
PFRS 8, Operating Segments
Amendments to Standards
PAS 32 and PAS 1 Amendments Puttable Financial Instruments and Obligations Arising on Liquidation
PFRS 1 and PAS 27 Amendments Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate
PFRS 2, Amendment Vesting Conditions and Cancellations
PFRS 7 Amendments Improving Disclosures about Financial Instruments
Philippine Interpretation International Financial Reporting Interpretation Committee (IFRIC 9) Remeasurement of Embedded Derivatives and IAS 39
Financial Instruments Recognition and Measurement (for periods ending on or after June 30, 2009)
Philippine Interpretation
IFRIC 13, Customer Loyalty Programmes
Philippine Interpretation IFRIC 16, Hedges of a Net Investment in a Foreign Operation
Philippine Interpretation IFRIC 18, Transfers of Assets from Customers
Adopted new standards, amendments and interpretations that are deemed to have an impact on the financial statements or performance of the Group
are described below:
PAS 1, Presentation of Financial Statements
The revised standard separates owner and non-owner changes in equity. The statement of changes in equity will include only details of transactions
with owners, with all non-owner changes in equity presented in a reconciliation of each component of equity. In addition, the standard introduces the
statement of comprehensive income, which presents all items of income and expense recognized in profit or loss, together with all other items of
recognized income and expense, either in one single statement, or in two linked statements. The revision also includes changes in titles of some of the
financial statements to reflect their function more clearly, although not mandatory for use in the financial statements. The Group has elected to present
two linked statement of comprehensive income and statement of income and also retained the title of its balance sheet.
PFRS 8, Operating Segments
PFRS 8 replaced PAS 14, Segment Reporting upon its effective date. The Group concluded that the operating segments determined in accordance with
PFRS 8 are the same as the business segments previously identified under PAS 14. PFRS 8 disclosures are shown in Note 29, including the related
revised comparative information.
PFRS 7 Amendments Improving Disclosures about Financial Instruments
The amendments to PFRS 7, Financial Instruments: Disclosures, require additional disclosures about fair value measurement and liquidity risk. Fair
value measurements related to items recorded at fair value are to be disclosed by source of inputs using a three level fair value hierarchy, by class, for all
financial instruments recognized at fair value. In addition, a reconciliation between the beginning and ending balance for level 3 fair value measurements
is now required, as well as significant transfers between levels in the fair value hierarchy. The amendments also clarify the requirements for liquidity
risk disclosures with respect to derivative transactions and financial assets used for liquidity management. The fair value measurement disclosures are
presented in Note 6. The liquidity risk disclosures are not significantly impacted by the amendments and are presented in Note 7.
Improvements to PFRSs 2008
The omnibus amendments to PFRSs issued in 2008 were issued primarily with a view to remove inconsistencies and clarifying wordings. There are
separate transitional provisions for each standard. The adoption of the amendments resulted in changes in accounting policies but did not have any impact
on the financial position or performance of the Group.
Foreign Currency Translation
The consolidated financial statements are presented in Philippine pesos, which is the Parent Companys functional currency. Each entity in the Group
determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency. The
functional currency of the Parent Companys subsidiaries is the Philippine pesos.
Transactions and balances
The books of accounts of the RBU are maintained in Philippine pesos, while those of the FCDU are maintained in United States (US) dollars. For financial
reporting purposes the foreign currency-denominated monetary assets and liabilities in the RBU are translated in Philippine pesos based on the Philippine
Dealing System (PDS) closing rate prevailing at end of the year, and foreign currency-denominated income and expenses, at the PDS weighted average
rate (PDSWAR) for the year. Foreign exchange differences arising from restatements of foreign currency-denominated assets and liabilities are credited
to or charged against operations in the period in which the rates change.
CHINA BANK
59
2009 ANNUAL REPORT
FCDU
Effective January 1, 2008
In compliance with the requirements of Bangko Sentral ng Pilipinas (BSP) Circular No. 494, and Philippine Accounting Standard (PAS) 21, The Effects of
Changes in Foreign Exchange Rates, management formalized its determination of the FCDUs functional currency. Based on managements assessment,
the FCDUs functional currency is USD. The use of USD faithfully represents the economic effects of the underlying transactions, events and conditions
that are relevant to the FCDU.
As at the reporting date, the assets and liabilities of the FCDU are translated into the Parent Companys presentation currency at the PDS closing rate
prevailing at the balance sheet date, and its income and expenses are translated at the PDSWAR for the year. Exchange differences arising on translation
are taken directly to the statement of comprehensive income under Cumulative translation adjustment. The change in functional currency resulted in the
recognition of translation adjustment of P53.89 million losses and P83.94 million gains as of December 31, 2009 and December 31, 2008, respectively.
Prior to 2008
For financial reporting purposes, the monetary assets and liabilities of the FCDU are translated in Philippine pesos based on the PDS closing rate
prevailing at end of the year, and foreign currency-denominated income and expenses, at the PDSWAR for the year. Foreign exchange differences arising
from restatements of foreign currency denominated assets and liabilities are credited to or charged against operations in the period in which the rates
change.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial
transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value
was determined.
Cash and Cash Equivalents
For purposes of reporting cash flows, cash and cash equivalents include cash and other cash items, due from BSP and other banks, and interbank loans
receivable and securities purchased under resale agreements with original maturities of three months or less from dates of placements and that are
subject to insignificant risk of changes in value.
Financial Instruments - Initial Recognition and Subsequent Measurement
Date of recognition
Purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace are
recognized on the trade date (i.e., the date that the Group commits to purchase or sell the asset). Derivatives are also recognized on a trade date basis.
Deposits, amounts due to banks and customers and loans are recognized when cash is received by the Group or advanced to the borrowers. Securities
transactions and related commission income and expense are recorded on a trade date basis.
Initial recognition of financial instruments
All financial assets, including trading and investment securities and loans and receivables, are initially recognized at fair value. Except for financial assets at
FVPL, the initial measurement of financial assets includes transaction costs. The Group classifies its financial assets in the following categories: financial
assets at FVPL, HTM financial assets, AFS financial assets, and loans and receivables while financial liabilities are classified as financial liabilities at FVPL
and financial liabilities carried at amortized cost. The classification depends on the purpose for which the investments were acquired and whether they
are quoted in an active market. Management determines the classification of its investments at initial recognition and, where allowed and appropriate,
re-evaluates such designation at every reporting date.
Determination of fair value
The fair value for financial instruments traded in active markets at the balance sheet date is based on their quoted market price or dealer price quotations
(bid price for long positions and ask price for short positions), without any deduction for transaction costs. When current bid and asking prices are
not available, the price of the most recent transaction provides evidence of the current fair value as long as there has not been a significant change in
economic circumstances since the time of the transaction.
For all other financial instruments not listed in an active market, the fair value is determined by using appropriate valuation techniques. Valuation
techniques include net present value techniques, comparison to similar instruments for which market observable prices exist, options pricing models,
and other relevant valuation models.
Day 1 profit
Where the transaction price in a non-active market is different from the fair value from other observable current market transactions in the same
instrument or based on a valuation technique whose variables include only data from observable market, the Group immediately recognizes the difference
between the transaction price and fair value (a Day 1 profit) in the statement of income unless it qualifies for recognition as some other type of asset.
In cases where use is made of data which is not observable, the difference between the transaction price and model value is only recognized in the
statement of income when the inputs become observable or when the instrument is derecognized. For each transaction, the Group determines the
appropriate method of recognizing the Day 1 profit amount.
Financial assets and financial liabilities at fair value through profit or loss
Financial assets and financial liabilities at FVPL include financial assets and liabilities held for trading purposes, financial assets and financial liabilities
designated upon initial recognition as at FVPL, and derivative instruments.
CHINA BANK
60
2009 ANNUAL REPORT
Financial assets and financial liabilities are classified as held for trading (HFT) if they are acquired for the purpose of selling and repurchasing in the near
term. Included in this classification are debt and equity securities which have been acquired principally for trading purposes.
Financial assets and financial liabilities are designated as at FVPL by management on initial recognition when any of the following criteria are met:
The designation eliminates or significantly reduces the inconsistent treatment that would otherwise arise from measuring the assets or liabilities or
recognizing gains or losses on them on a different basis; or
The assets and liabilities are part of a group of financial assets, financial liabilities or both which are managed and their performance evaluated on a
fair value basis, in accordance with a documented risk management or investment strategy; or
The financial instrument contains an embedded derivative, unless the embedded derivative does not significantly modify the cash flows or it is clear,
with little or no analysis, that it would not be separately recorded.
The Parent Company designated its investments in Interest-Linked Structured Products (ISP) and Dual Curve Notes (DCN) as financial assets at FVPL so
as not to bifurcate the derivatives embedded in these instruments (see Note 8).
Financial assets and financial liabilities at FVPL are recorded in the balance sheet at fair value. Changes in fair value are recognized in Trading and
securities gain in the statement of income. Interest earned or incurred is recorded in interest income or expense, respectively, while dividend income is
recorded in other operating income when the right to receive payment has been established.
Derivatives recorded at fair value through profit or loss
The Parent Company is a party to derivative instruments, particularly, forward exchange contracts. These contracts are entered into as a service to
customers and as a means of reducing and managing the Parent Companys foreign exchange risk, as well as for trading purposes, but are not designated
as hedges. Such derivative financial instruments are stated at fair value through profit or loss.
Embedded derivatives that are bifurcated from the host financial and non-financial contracts are also accounted for at FVPL.
An embedded derivative is separated from the host contract and accounted for as a derivative if all of the following conditions are met: a) the economic
characteristics and risks of the embedded derivative are not closely related to the economic characteristic of the host contract; b) a separate instrument
with the same terms as the embedded derivative would meet the definition of a derivative; and c) the hybrid or combined instrument is not recognized
at fair value through profit or loss. The Group assesses whether embedded derivatives are required to be separated from the host contracts when the
Group first becomes a party to the contract. Reassessment of embedded derivatives is only done when there are changes in the contract that significantly
modifies the contractual cash flows that would otherwise be required.
HTM financial assets are quoted non-derivative financial assets with fixed or determinable payments and fixed maturities for which the Groups management
has the positive intention and ability to hold to maturity. Where the Group would sell other than an insignificant amount of HTM financial assets, the entire
category would be tainted and reclassified as AFS financial assets. After initial measurement, these investments are subsequently measured at amortized
cost using the effective interest rate (EIR) method, less any impairment in value. Amortized cost is calculated by taking into account any discount or
premium on acquisition and fees that are an integral part of the EIR. The amortization is included in Interest income in the statement of income. Gains
and losses are recognized in income when the HTM financial assets are derecognized and impaired, as well as through the amortization process. The
losses arising from impairment of such investments are recognized in the statement of income under Provision for impairment and credit losses. The
effects of translation of foreign currency-denominated HTM financial assets are recognized in the statement of income.
Loans and receivable
This accounting policy relates to the balance sheet captions Due from Bangko Sentral ng Pilipinas (BSP), Due from other banks, Interbank loans
receivable and securities purchased under resale agreements (SPURA), and Loans and receivables. These are financial assets with fixed or determinable
payments that are not quoted in an active market. They are not entered into with the intention of immediate or short-term resale and are not classified
as FVPL or as AFS financial assets.
After initial measurement, these are subsequently measured at amortized cost using the EIR method, less allowance for impairment. Amortized cost
is calculated by taking into account any discount or premium on acquisition and fees and costs that are an integral part of the EIR. The amortization is
included in the Interest income in the statement of income. The losses arising from impairment are recognized under Provision for impairment and
credit losses in the statement of income.
AFS financial assets are those which are designated as such or do not qualify to be classified as financial assets at FVPL, HTM financial assets, or loans
and receivables. They are purchased and held indefinitely, and may be sold in response to liquidity requirements or changes in market conditions. They
include equity investments, money market papers and other debt instruments.
After initial measurement, AFS financial assets are subsequently measured at fair value. The effective yield component of AFS debt securities, as well as
the impact of translation of foreign currency-denominated AFS debt securities, is reported in the statement of income. The unrealized gains and losses
arising from the fair valuation of AFS financial assets are excluded, net of tax, from reported earnings and are reported as Net unrealized gains (losses) on
AFS financial assets in the other comprehensive income.
CHINA BANK
61
2009 ANNUAL REPORT
When the security is disposed of, the cumulative gain or loss previously recognized in the other comprehensive income is recognized as Trading and
securities gain in the statement of income. Where the Group holds more than one investment in the same security, these are deemed to be disposed
of on a first-in first-out basis. Interest earned on holding AFS debt securities are reported as Interest income using the EIR. Dividends earned on holding
AFS equity instruments are recognized in the statement of income as Miscellaneous income when the right to the payment has been established.
The losses arising from impairment of such investments are recognized as Provision for impairment and credit losses in the statement of income.
Reclassification of Financial Assets
Effective from July 1, 2008, the Group may reclassify, in certain circumstances, non-derivative financial assets out of the HFT investments category and
into the AFS investments, Loans and Receivables or HTM investments categories. From this date it may also reclassify, in certain circumstances, financial
instruments out of the AFS investment to Loans and Receivables category. Reclassifications are recorded at fair value at the date of reclassification,
which becomes the new amortized cost.
The Group may reclassify a non-derivative trading asset out of HFT investments and into the Loans and Receivable category if it meets the definition of
loans and receivables and the Group has the intention and ability to hold the financial assets for the foreseeable future or until maturity. If a financial asset
is reclassified, and if the Group subsequently increases its estimates of future cash receipts as a result of increased recoverability of those cash receipts,
the effect of that increase is recognized as an adjustment to the EIR from the date of the change in estimate.
For a financial asset reclassified out of the AFS investments category, any previous gain or loss on that asset that has been recognized in other
comprehensive income is amortized to profit or loss over the remaining life of the investment using the EIR method. Any difference between the new
amortized cost and the expected cash flows is also amortized over the remaining life of the asset using the EIR method. If the asset is subsequently
determined to be impaired then the amount recorded in other comprehensive income is recycled to the statement of income.
Reclassification is at the election of management, and is determined on an instrument by instrument basis. The Group does not reclassify any financial
instrument into the FVPL category after initial recognition.
Other financial liabilities
Issued financial instruments or their components, which are not designated as at FVPL, are classified as other financial liability accounts, where the
substance of the contractual arrangement results in the Group having an obligation either to deliver cash or another financial asset to the holder, or to
satisfy the obligation other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of its own equity shares. The
components of issued financial instruments that contain both liability and equity elements are accounted for separately, with the equity component being
assigned the residual amount after deducting from the instrument as a whole the amount separately determined as the fair value of the liability component
on the date of issue.
After initial measurement, other financial liabilities not qualified and not designated as at FVPL are subsequently measured at amortized cost using the EIR
method. Amortized cost is calculated by taking into account any discount or premium on the issue and fees that are an integral part of the EIR.
This accounting policy relates to the balance sheet captions Deposit liabilities, Bills payable, Managers checks, Accrued interest and other expenses
and Other liabilities.
Derecognition of Financial Assets and Liabilities
Financial assets
A financial asset (or, where applicable a part of a financial asset or part of a group of financial assets) is derecognized when:
the rights to receive cash flows from the asset have expired; or
the Group retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third
party under a pass-through arrangement; or
the Group has transferred its rights to receive cash flows from the asset and either (a) has transferred substantially all the risks and rewards of the
asset, or (b) has neither transferred nor retained the risk and rewards of the asset but has transferred the control of the asset.
Where the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, and has neither
transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is recognized to the extent of
the Groups continuing involvement in the asset. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the
lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay.
Financial liabilities
A financial liability is derecognized when the obligation under the liability is discharged, cancelled or has expired. Where an existing financial liability is
replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange
or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying
amounts is recognized in statement of income.
Repurchase and Reverse Repurchase Agreements
Securities sold under agreements to repurchase at a specified future date (repos) are not derecognized from the balance sheet. The corresponding cash
received, including accrued interest, is recognized in the balance sheet as a loan to the Group, reflecting the economic substance of such transaction. The
Group has no repurchase agreements as of December 31, 2009 and 2008.
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Conversely, securities purchased under agreements to resell at a specified future date (reverse repos) are not recognized in the balance sheet. The
corresponding cash paid, including accrued interest, is recognized in the balance sheet as securities purchased under resale agreements (SPURA), and is
considered a loan to the counterparty. The difference between the purchase price and resale price is treated as interest income and is accrued over the
life of the agreement using the EIR method.
Impairment of Financial Assets
The Group assesses at each balance sheet date whether there is objective evidence that a financial asset or group of financial assets is impaired. A
financial asset or a group of financial assets is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more
events that has occurred after the initial recognition of the asset (an incurred loss event) and that loss event (or events) has an impact on the estimated
future cash flows of the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may include indications that
the borrower or a group of borrowers is experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability
that they will enter bankruptcy or other financial reorganization and where observable data indicate that there is measurable decrease in the estimated
future cash flows, such as changes in arrears or economic conditions that correlate with defaults.
Financial assets carried at amortized cost
For financial assets carried at amortized cost, the Group first assesses whether objective evidence of impairment exists individually for financial assets
that are individually significant, or collectively for financial assets that are not individually significant.
If there is objective evidence that an impairment loss has been incurred, the amount of loss is measured as the difference between the assets carrying
amount and the present value of the estimated future cash flows (excluding future credit losses that have not been incurred). The carrying amount of the
asset is reduced through use of an allowance account and the amount of loss is charged to the statement of income. Interest income continues to be
recognized based on the original EIR of the asset. The financial assets, together with the associated allowance accounts, are written off when there is
no realistic prospect of future recovery and all collateral has been realized.
If the Group determines that no objective evidence of impairment exists for individually assessed financial asset, whether significant or not, it includes the
asset in a group of financial assets with similar credit risk characteristics and collectively assesses for impairment. Those characteristics are relevant to
the estimation of future cash flows for groups of such assets by being indicative of the debtors ability to pay all amounts due according to the contractual
terms of the assets being evaluated. Assets that are individually assessed for impairment and for which an impairment loss is, or continues to be,
recognized are not included in a collective assessment for impairment.
If, in a subsequent year, the amount of the estimated impairment loss decreases because of an event occurring after the impairment was recognized,
the previously recognized impairment loss is reduced by adjusting the allowance account. If a future write-off is later recovered, any amounts formerly
charged are credited to the Provision for impairment and credit losses.
The present value of the estimated future cash flows is discounted at the financial assets original EIR. If a loan has a variable interest rate, the discount
rate for measuring any impairment loss is the current EIR, adjusted for the original credit risk premium. The calculation of the present value of the
estimated future cash flows of a collateralized financial asset reflects the cash flows that may result from foreclosure less costs for obtaining and selling
the collateral, whether or not foreclosure is probable.
For the purpose of a collective evaluation of impairment, financial assets are grouped on the basis of such credit risk characteristics as industry, collateral
type and past due status.
Future cash flows in a group of financial assets that are collectively evaluated for impairment are estimated on the basis of historical loss experience for
assets with credit risk characteristics similar to those in the group. Historical loss experience is adjusted on the basis of current observable data to reflect
the effects of current conditions that did not affect the period on which the historical loss experience is based and to remove the effects of conditions in
the historical period that do not exist currently. Estimates of changes in future cash flows reflect, and are directionally consistent with changes in related
observable data from period to period (such as changes in unemployment rates, property prices, commodity prices, payment status, or other factors that
are indicative of incurred losses in the Group and their magnitude). The methodology and assumptions used for estimating future cash flows are reviewed
regularly by the Group to reduce any differences between loss estimates and actual loss experience.
Financial assets carried at cost
If there is objective evidence that an impairment loss on an unquoted equity instrument that is not carried at fair value because its fair value cannot be
reliably measured, or on a derivative asset that is linked to and must be settled by delivery of such an unquoted equity instrument has been incurred, the
amount of loss is measured as the difference between the assets carrying amount and the present value of estimated future cash flows discounted at
the current market rate of return for a similar financial asset.
For AFS financial assets, the Group assesses at each balance sheet date whether there is objective evidence that a financial asset or group of financial
assets is impaired.
In the case of equity investments classified as AFS financial assets, this would include a significant or prolonged decline in the fair value of the investments
below its cost. Where there is evidence of impairment, the cumulative loss - measured as the difference between the acquisition cost and the current fair
value, less any impairment loss on that financial asset previously recognized in the statement of income - is removed from other comprehensive income
and recognized in the statement of income. Impairment losses on equity investments are not reversed through the statement of income. Increases in
fair value after impairment are recognized directly in the other comprehensive income.
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In the case of debt instruments classified as AFS financial assets, impairment is assessed based on the same criteria as financial assets carried at
amortized cost. Future interest income is based on the reduced carrying amount and is accrued based on the rate of interest used to discount future cash
flows for the purpose of measuring impairment loss. Such accrual is recorded as part of Interest income in the statement of income. If, in subsequent
year, the fair value of a debt instrument increased and the increase can be objectively related to an event occurring after the impairment loss was
recognized in the statement of income, the impairment loss is reversed through the statement of income.
Restructured loans
Where possible, the Group seeks to restructure loans rather than to take possession of collateral. This may involve extending the payment arrangements
and the agreement of new loan conditions. Once the terms have been renegotiated, the loan is no longer considered past due. Management continuously
reviews restructured loans to ensure that all criteria are met and that future payments are likely to occur. The loans continue to be subject to an individual
or collective impairment assessment, calculated using the loans original EIR. The difference between the recorded value of the original loan and the
present value of the restructured cash flows, discounted at the original EIR, is recognized in Provision for impairment and credit losses in the statement
of income.
Offsetting Financial Instruments
Financial assets and financial liabilities are offset and the net amount reported in the balance sheet if, and only if, there is a currently enforceable legal right
to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the asset and settle the liability simultaneously. This is not
generally the case with master netting agreements, and the related assets and liabilities are presented gross in the balance sheet.
Investments in Associates
Associates pertain to all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between
20.00% and 50.00% of the voting rights. In the consolidated financial statements, investments in associates are accounted for under the equity method
of accounting.
Under the equity method, an investment in an associate is carried in the balance sheet at cost plus post-acquisition changes in the Groups share of the
net assets of the associate. Goodwill relating to an associate is included in the carrying value of the investments and is not amortized. The statement of
income reflects the share of the results of operations of the associate. Where there has been a change recognized directly in the equity of the associate,
the Group recognizes its share of any changes and discloses this, when applicable, in the statement of changes in equity.
When the Groups share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group
does not recognize further losses, unless it has incurred obligations or made payments on behalf of the associate. Profits or losses resulting from
transactions between the Group and an associate are eliminated to the extent of the interest in the associate.
The financial statements of the associate are prepared for the same reporting period as the Parent Company. Where necessary, adjustments are made
to bring the accounting policies in line with those of the Group.
In the separate or parent company financial statements, investments in associates are carried at cost, less accumulated impairment in value. Dividends
earned on these investments are recognized in the Parent Companys statement of income as declared by the respective BOD of the investees.
Revenue Recognition
Revenue is recognized to the extent that it is probable that economic benefits will flow to the Group and the revenue can be reliably measured. The
following specific recognition criteria must also be met before revenue is recognized:
Interest income
For all financial instruments measured at amortized cost and interest bearing financial instruments classified as FVPL and AFS financial assets, interest
income is recorded at the EIR, which is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the
financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or financial liability. The calculation takes
into account all contractual terms of the financial instrument (for example, prepayment options), includes any fees or incremental costs that are directly
attributable to the instrument and are an integral part of the EIR, as applicable, but not future credit losses. The adjusted carrying amount is calculated
based on the original EIR. The change in carrying amount is recorded as Interest income.
Once the recorded value of a financial asset or group of similar financial assets has been reduced due to an impairment loss, interest income continues
to be recognized using the original EIR applied to the new carrying amount.
Loan fees and service charges
Loan commitment fees are recognized as earned over the terms of the credit lines granted to each borrower. Loan syndication fees are recognized upon
completion of all syndication activities and where the Group does not have further obligations to perform under the syndication agreement.
Service charges and penalties are recognized only upon collection or accrued where there is a reasonable degree of certainty as to their collectibility.
Dividend income
Dividend income is recognized when the Groups right to receive payment is established.
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Trading and securities gains

Results arising from trading activities include all gains and losses from changes in fair value of financial assets held for trading and designated at FVPL. It
also includes gains and losses realized from sale of AFS financial assets.
Rental income
Rental income arising on leased properties is accounted for on a straight-line basis over the lease terms on ongoing leases and is recorded in the
statement of income under Miscellaneous income.
Bank Premises, Furniture, Fixtures and Equipment
Depreciable properties including buildings, leasehold improvements, and furniture, fixture and equipment are stated at cost less accumulated depreciation
and amortization, and any impairment in value. Such cost includes the cost of replacing part of the bank premises, furniture, fixtures and equipment when
that cost is incurred if the recognition criteria are met, but excludes repairs and maintenance costs.
Depreciation and amortization is calculated on the straight-line method over the estimated useful life (EUL) of the depreciable assets as follows:
EUL
50 years
3 to 5 years
Shorter of 6 years or the related lease terms
Buildings
Furniture, fixtures and equipment
Leasehold improvements
The depreciation and amortization method and useful life are reviewed periodically to ensure that the method and period of depreciation and amortization
are consistent with the expected pattern of economic benefits from items of bank premises, furniture, fixtures and equipment.
An item of bank premises, furniture, fixtures and equipment is derecognized upon disposal or when no future economic benefits are expected from its
use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying
amount of the asset) is included in the statement of income in the year the asset is derecognized.
Investment Properties
Initially, investment properties are measured at cost including certain transaction costs. Investment properties acquired through a nonmonetary asset
exchange is measured initially at fair value unless (a) the exchange lacks commercial substance or (b) the fair value of neither the asset received nor the
asset given up is reliably measurable. Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and any
accumulated impairment in value.
Investment properties are derecognized when they have either been disposed of or when the investment properties are permanently withdrawn from
use and no future benefit is expected from their disposal. Any gain or loss on the derecognition of an investment property is recognized as Gain on sale
of investment properties in the statement of income in the year of derecognition.
Expenditures incurred after the investment properties have been put into operation, such as repairs and maintenance costs, are normally charged to
income in the period in which the costs are incurred.
Depreciation is calculated on a straight-line basis using the following useful lives from the time of acquisition of the investment properties:
Estimated
Useful Life
10 to 20 years
Buildings and improvements
Transfers are made to investment properties when, and only when, there is a change in use evidenced by ending of owner occupation, commencement
of an operating lease to another party or ending of construction or development. Transfers are made from investment properties when, and only when,
there is a change in use evidenced by commencement of owner occupation or commencement of development with a view to sale.
Business Combinations and Goodwill
Business combinations are accounted for using the purchase method of accounting. Goodwill acquired in a business combination is initially measured
at cost, being the excess of the cost of the business combination over the Groups interest in the net fair value of the identifiable assets, liabilities and
contingent liabilities acquired. If the cost of acquisition is less than the fair values of the identifiable net assets acquired, the discount on acquisition is
recognized directly in the statement of income in the year of acquisition.
Following initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is reviewed for impairment annually or more
frequently if events or changes in circumstances indicate that the carrying value may be impaired.
Impairment of Goodwill
For the purpose of impairment testing, goodwill acquired in a business combination is, from the date of acquisition, allocated to each of the Groups cashgenerating units, or groups of cash-generating units, that are expected to benefit from the synergies of the combination, irrespective of whether other
assets or liabilities of the acquiree are assigned to those units or group of units. Each unit or group of units to which the goodwill is allocated:
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2009 ANNUAL REPORT
represents the lowest level within the Group at which the goodwill is monitored for internal management purposes; and
is not larger than a segment based on either the Parent Companys primary or the Parent Companys secondary reporting format determined in
accordance with PFRS 8, Segment Reporting.
Where goodwill forms part of a cash-generating unit (or group of cash-generating units) and part of the operation within that unit is disposed of, the
goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of
the operation. Goodwill disposed of in this circumstance is measured based on the relative values of the operation disposed of and the portion of the
cash-generating unit retained.
When subsidiaries are sold, the difference between the selling price and the net assets plus cumulative translation differences and unamortized goodwill
is recognized in the statement of income.
Intangible Assets
Intangible assets include branch licenses resulting from the Parent Companys acquisition of ChinaBank Savings (see Note 4).
The branch licenses are initially measured at fair value as of the date of acquisition and are deemed to have an indefinite useful life as there is no
foreseeable limit to the period over which they are expected to generate net cash inflows for the Group.
Intangible assets with indefinite useful life are tested for impairment annually either individually or at the cash generating unit level. Impairment is
determined by assessing the recoverable amount of each cash-generating unit (or group of cash-generating units) to which the intangible asset relates.
Recoverable amount is higher of the cash-generating units fair value less costs to sell and its value in use. Where the recoverable amount of the cashgenerating units is less than its carrying amount, an impairment loss is recognized.
Such intangibles are not amortized. Gains and losses arising from derecognition of an intangible asset are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and are recognized in earnings when the asset is derecognized.
Impairment of Nonfinancial Assets
At each reporting date, the Group assesses whether there is any indication that its nonfinancial assets (e.g., investment properties and bank premises,
furniture, fixtures and equipment, intangible assets) may be impaired. When an indicator of impairment exists or when an annual impairment testing
for an asset is required, the Group makes a formal estimate of recoverable amount. Recoverable amount is the higher of an assets (or cash-generating
units) fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are
largely independent of those from other assets or groups of assets, in which case the recoverable amount is assessed as part of the cash generating
unit to which it belongs. Where the carrying amount of an asset (or cash generating unit) exceeds its recoverable amount, the asset (or cash generating
unit) is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset
(or cash generating unit).
An impairment loss is charged to operations in the year in which it arises, unless the asset is carried at a revalued amount, in which case the impairment
loss is charged to the revaluation increment of the said asset.
For nonfinancial assets, excluding goodwill and branch licenses, an assessment is made at each reporting date as to whether there is any indication that
previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A
previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the assets recoverable amount
since the last impairment loss was recognized. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased
amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset
in prior years. Such reversal is recognized in the statement of income unless the asset is carried at a revalued amount, in which case the reversal is treated
as a revaluation increase. After such a reversal, the depreciation expense is adjusted in future years to allocate the assets revised carrying amount, less
any residual value, on a systematic basis over its remaining life.
Leases
The determination of whether an arrangement is, or contains a lease is based on the substance of the arrangement and requires an assessment of
whether the fulfillment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset.
A reassessment is made after inception of the lease only if one of the following applies:
(a)
(b)
(c)
(d)
There is a change in contractual terms, other than a renewal or extension of the arrangement;
A renewal option is exercised or extension granted, unless that term of the renewal or extension was initially included in the lease term;
There is a change in the determination of whether fulfillment is dependent on a specified asset; or
There is a substantial change to the asset.
Where a reassessment is made, lease accounting shall commence or cease from the date when the change in circumstances gave rise to the reassessment
for scenarios (a), (c) or (d) above, and at the date of renewal or extension period for scenario (b).
Group as lessee
Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases. Operating lease
payments are recognized as an expense in the statement of income on a straight-line basis over the lease term.
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Group as lessor
Leases where the Group does not transfer substantially all the risk and benefits of ownership of the assets are classified as operating leases. Initial direct
costs incurred in negotiating operating leases are added to the carrying amount of the leased asset and recognized over the lease term on the same basis
as the rental income. Contingent rents are recognized as revenue in the period in which they are earned.
Pension Benefits
The Group has a noncontributory defined benefit retirement plan.
The retirement cost of the Parent Company and its subsidiaries is determined using the projected unit credit method. Under this method, the current
service cost is the present value of retirement benefits payable in the future with respect to services rendered in the current period.
The asset recognized in the balance sheet in respect of defined benefit pension plans is the fair value of plan assets at the balance sheet date less present
value of the defined benefit obligation, together with adjustments for unrecognized actuarial gains or losses and past service costs. The defined benefit
obligation is calculated annually by an independent actuary using the projected unit credit method. The present value of the defined benefit obligation is
determined by discounting the estimated future cash outflows using interest rate on government bonds that have terms to maturity approximating the
terms of the related retirement liability.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are credited to or charged against income when the
net cumulative unrecognized actuarial gains and losses at the end of the previous period exceeded 10% of the higher of the defined benefit obligation
or the fair value of plan assets at that date. These excess gains or losses are recognized over the expected average remaining working lives of the
employees participating in the plan.
Past-service costs, if any, are recognized immediately in income, unless the changes to the pension plan are conditional on the employees remaining
in service for a specified period of time (the vesting period). In this case, the past-service costs are amortized on a straight-line basis over the vesting
period.
The defined benefit asset or liability comprises the present value of the defined benefit obligation less past service costs not yet recognized and less the
fair value of plan assets out of which the obligations are to be settled directly. Plan assets are assets that are held by a long-term employee benefit fund
or qualifying insurance policies. Plan assets are not available to the creditors of the
Group nor can they be paid directly to the Group. Fair value is based on market price information and in the case of quoted securities it is the published bid
price. The value of any plan asset recognized is restricted to the sum of any past service costs not yet recognized and the present value of any economic
benefits available in the form of refunds from the plan or reductions in the future contributions to the plan.
Provisions and Contingencies
Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
Where the Group expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognized as a
separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of income, net
of any reimbursement. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows
at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Where
discounting is used, the increase in the provision due to the passage of time is recognized as an interest expense.
Contingent liabilities are not recognized in the financial statements but are disclosed unless the possibility of an outflow of resources embodying economic
benefits is remote. Contingent assets are not recognized but are disclosed in the financial statements when an inflow of economic benefits is probable.
Income Taxes
Current Tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted as of the balance sheet date.
Deferred Tax
Deferred tax is provided, using the balance sheet liability method, on all temporary differences at the balance sheet date between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes.
Deferred tax liabilities are recognized for all taxable temporary differences, including asset revaluations. Deferred tax assets are recognized for all
deductible temporary differences, carry forward of unused tax credits from the excess of minimum corporate income tax (MCIT) over the regular
corporate income tax (RCIT), and unused net operating loss carryover (NOLCO), to the extent that it is probable that sufficient taxable profit will be
available against which the deductible temporary differences and carry forward of unused tax credits from MCIT and unused NOLCO can be utilized.
Deferred tax, however, is not recognized on temporary differences that arise from the initial recognition of an asset or liability in a transaction that is not
a business combination and, at the time of the transaction, affects neither the accounting income nor taxable income.
Deferred tax liabilities are not provided on non-taxable temporary differences associated with investments in domestic subsidiaries and associates.
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The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each balance
sheet date and are recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are applicable to the period when the asset is realized or the liability is settled, based
on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.
Current tax and deferred tax relating to items recognized directly in equity is also recognized in equity and not in the statement of income.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and
deferred taxes related to the same taxable entity and the same taxation authority.
Earnings per Share
Basic earnings per share (EPS) is computed by dividing net income for the year by the weighted average number of common shares outstanding during
the year after giving retroactive effect to stock dividends declared and stock rights exercised during the year, if any.
The Parent Company has no outstanding dilutive potential common shares.
Dividends on Common Shares
Dividends on common shares are recognized as a liability and deducted from equity when approved by the respective shareholders of the Parent Company
and its subsidiaries. Dividends for the year that are approved after the balance sheet date are dealt with as an event after the balance sheet date.
Subsequent Events
Any post-year-end event that provides additional information about the Groups position at the balance sheet date (adjusting event) is reflected in the
financial statements. Post-year-end events that are not adjusting events, if any, are disclosed when material to the financial statements.
Segment Reporting
The Groups operating businesses are organized and managed separately according to the nature of the products and services provided, with each
segment representing a strategic business unit that offers different products and serves different markets. Financial information on business segments
is presented in Note 29. The Groups revenue producing assets are located in the Philippines (i.e., one geographical location). Therefore, geographical
segment information is no longer presented.
Fiduciary Activities
Assets and income arising from fiduciary activities together with related undertakings to return such assets to customers are excluded from the financial
statements where the Parent Company acts in a fiduciary capacity such as nominee, trustee or agent.
Future Changes in Accounting Policies
The Group will adopt the following standards and interpretations enumerated below when these become effective. Except as otherwise indicated,
the Group does not expect the adoption of these new and amended PFRS and Philippine Interpretations to have significant impact on its financial
statements.
Effective in 2010
PFRS 3, (Revised) Business Combinations and PAS 27, Consolidated and Separate Financial Statements (Amended)
The revised standards are effective for annual periods beginning on or after July 1, 2009. PFRS 3 (Revised) introduces significant changes in the accounting
for business combinations occurring after this date. Changes affect the valuation of non-controlling interest, the accounting for transaction costs, the
initial recognition and subsequent measurement of a contingent consideration and business combinations achieved in stages. These changes will impact
the amount of goodwill recognized, the reported results in the period that an acquisition occurs and future reported results. PAS 27 (Amended) requires
that a change in the ownership interest of a subsidiary (without loss of control) is accounted for as a transaction with owners in their capacity as owners.
Therefore, such transactions will no longer give rise to goodwill, nor will it give rise to a gain or loss. Furthermore, the amended standard changes the
accounting for losses incurred by the subsidiary as well as the loss of control of a subsidiary. The changes by PFRS 3 (Revised) and PAS 27 (Amended) will
affect future acquisitions or loss of control of subsidiaries and transactions with non-controlling interests. PFRS 3 (Revised will be applied prospectively
while PAS 27 (Amended) will be applied retrospectively with a few exceptions.
PAS 39 Amendments Eligible Hedged Items
The amendment to PAS 39, Financial Instruments: Recognition and Measurement, effective for annual periods beginning on or after July 1, 2009, clarifies
that an entity is permitted to designate a portion of the fair value changes or cash flow variability of a financial instrument as a hedged item. This also
covers the designation of inflation as a hedged risk or portion in particular situations.
PFRS 2 Amendments Group Cash-settled Share-based Payment Transactions
The amendments to PFRS 2, Share-based Payments, effective for annual periods beginning on or after January 1, 2010, clarify the scope and the
accounting for group cash-settled share-based payment transactions.
Philippine Interpretation IFRIC 17, Distribution of Non-cash Assets to Owners
This Interpretation is effective for annual periods beginning on or after July 1, 2009 with early application permitted. It provides guidance on how to
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account for non-cash distributions to owners. The interpretation clarifies when to recognize a liability, how to measure it and the associated assets, and
when to derecognize the asset and liability.
Improvements to PFRSs 2009
The omnibus amendments to PFRSs issued in 2009 were issued primarily with a view to remove inconsistencies and clarify wordings. The amendments
are effective for annual periods financial years January 1, 2010 except otherwise stated. The Group has not yet adopted the following
amendments and anticipates that these changes will have no material effect on the financial
statements.
PFRS 2, Share-based Payment
Clarifies that the contribution of a business on formation of a joint venture and combinations under common control are not within the scope of
PFRS 2 even though they are out of scope of PFRS 3, Business Combinations (Revised). The amendment is effective for financial years on or after
July 1, 2009.
PFRS 5, Non-current Assets Held for Sale and Discontinued Operations
Clarifies that the disclosures required in respect of non-current assets and disposal groups classified as held for sale or discontinued operations
are only those set out in PFRS 5. The disclosure requirements of other PFRSs only apply if specifically required for such non-current assets or
discontinued operations.
PFRS 8, Operating Segment Information
Clarifies that segment assets and liabilities need only be reported when those assets and liabilities are included in measures that are used by the
chief operating decision maker.
PAS 1, Presentation of Financial Statements
Clarifies that the terms of a liability that could result, at anytime, in its settlement by the issuance of equity instruments at the option of the
counterparty do not affect its classification.
PAS 7, Statement of Cash Flows
Explicitly states that only expenditure that results in a recognized asset can be classified as a cash flow from investing activities.
PAS 17, Leases
Removes the specific guidance on classifying land as a lease. Prior to the amendment, leases of land were classified as operating leases. The
amendment now requires that leases of land are classified as either finance or operating in accordance with the general principles of PAS 17. The
amendments will be applied retrospectively.
PAS 36, Impairment of Assets
The amendment clarified that the largest unit permitted for allocating goodwill, acquired in a business combination, is the operating segment as
defined in PFRS 8 before aggregation for reporting purposes.
PAS 38, Intangible Assets
Clarifies that if an intangible asset acquired in a business combination is identifiable only with another intangible asset, the acquirer may recognize
the group of intangible assets as a single asset provided the individual assets have similar useful lives. Also, it clarifies that the valuation techniques
presented for determining the fair value of intangible assets acquired in a business combination that are not traded in active markets are only
examples and are not restrictive on the methods that can be used.
PAS 39, Financial Instruments: Recognition and Measurement
The amendment clarifies the following:

Prepayment option is considered closely related to the host contract when the exercise price of a prepayment option reimburses the lender
up to the approximate present value of lost interest for the remaining term of the host contract.
Scope exemption for contracts between an acquirer and a vendor in a business combination to buy or sell an acquiree at a future date applies
only to binding forward contracts, and not derivative contracts where further actions by either party are still to be taken.
Requires that gains or losses on cash flow hedges of a forecast transaction that subsequently results in the recognition of a financial
instrument or on cash flow hedges of recognized financial instruments should be reclassified in the period that the hedged forecast cash
flows affect profit or loss.
Philippine Interpretation IFRIC 9, Reassessment of Embedded Derivatives
Clarifies that possible reassessment does not apply at the date of acquisition, to embedded derivatives in contracts acquired in a business combination
between entities or businesses under common control or the formation of joint venture.
Philippine Interpretation IFRIC 16, Hedge of a Net Investment in a Foreign Operation
States that, in a hedge of a net investment in a foreign operation, qualifying hedging instruments may be held by any entity or entities within the
group, including the foreign operation itself, as long as the designation, documentation and effectiveness requirements of PAS 39 that relate to a
net investment hedge are satisfied.
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2009 ANNUAL REPORT
Effective in 2012
Philippine Interpretation IFRIC 15, Agreement for Construction of Real Estate
This Interpretation covers accounting for revenue and associated expenses by entities that undertake the construction of real estate directly or through
subcontractors. This Interpretation requires that revenue on construction of real estate be recognized only upon completion, except when such contract
qualifies as construction contract to be accounted for under PAS 11, Construction Contracts, or involves rendering of services in which case revenue is
recognized based on stage of completion. Contracts involving provision of services with the construction materials and where the risks and reward of
ownership are transferred to the buyer on a continuous basis will also be accounted for based on stage of completion.
3.
Significant Accounting Judgments and Estimates

The preparation of the financial statements in accordance with PFRS requires the Group to make judgments and estimates that affect the reported
amounts of assets, liabilities, income and expenses and disclosure of contingent assets and contingent liabilities. Future events may occur which will
cause the judgments and assumptions used in arriving at the estimates to change. The effects of any change in judgments and estimates are reflected
in the financial statements as they become reasonably determinable.
Judgments and estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that
are believed to be reasonable under the circumstances.
Judgments
Operating leases
The Group has entered into commercial property leases on its investment property portfolio. The Group has determined based on the evaluation of the
terms and conditions of the arrangements (i.e., the lease does not transfer the ownership of the asset to the lessee by the end of the lease term, the
lessee has no option to purchase the asset at a price that is expected to be sufficiently lower than the fair value at the date the option is exercisable and
the lease term is not for the major part of the assets economic life), that it retains all the significant risks and rewards of ownership of these properties
which are leased out as operating leases.
Fair value of financial instruments
Where the fair values of financial assets and financial liabilities recorded on the balance sheet or disclosed in the notes cannot be derived from active
markets, they are determined using a variety of valuation techniques acceptable to the market as alternative valuation approaches that include the use
of mathematical models. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of
judgment is required in establishing fair values. The judgments include considerations of liquidity and model inputs such as correlation and volatility for
longer dated derivatives.
HTM financial assets
The classification to HTM financial assets requires significant judgment. In making this judgment, the Group evaluates its intention and ability to hold such
investments to maturity. If the Group fails to keep these investments to maturity other than in certain specific circumstances - for example, selling an
insignificant amount close to maturity - it will be required to reclassify the entire portfolio as part of AFS financial assets. The investments would therefore
be measured at fair value and not at amortized cost.
Financial assets not quoted in an active market
The Group classifies financial assets by evaluating, among others, whether the asset is quoted or not in an active market. Included in the evaluation on
whether a financial asset is quoted in an active market is the determination of whether quoted prices are readily and regularly available, and whether those
prices represent actual and regularly occurring market transactions conducted on an arms length basis.
Functional currency
PAS 21 requires management to use its judgment to determine the entitys functional currency such that it most faithfully represents the economic effects
of the underlying transactions, events and conditions that are relevant to the entity. In making this judgment, the Group considers the following:
a) the currency that mainly influences sales prices for financial instruments and services (this will often be the currency in which sales prices for its
financial instruments and services are denominated and settled);
b) the currency in which funds from financing activities are generated; and
c) the currency in which receipts from operating activities are usually retained.
Estimates
Impairment losses on loans and receivables
The Group reviews its loans and receivables at each reporting date to assess whether an allowance for impairment should be recorded in the balance
sheet and any changes thereto in the statement of income. In particular, judgment by management is required in the estimation of the amount and timing
of future cash flows when determining the level of allowance required. Such estimates are based on assumptions about a number of factors. Actual
results may also differ, resulting in future changes to the allowance.
In addition to specific allowance against individually significant loans and receivables, the Group also makes a collective impairment assessment on
exposures which, although not specifically identified as requiring a specific allowance, have a greater risk of default than when originally granted. The
resulting collective allowance is based on any deterioration in the internal rating of the loan or investment since it was granted or acquired. These internal
ratings take into consideration factors such as any deterioration in country risk, industry, and technological obsolescence, as well as identified structural
weaknesses or deterioration in cash flows.
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2009 ANNUAL REPORT
As of December 31, 2009 and 2008, the allowance for impairment and credit losses on loans and receivables of the Group amounted to P7.04 billion and
P6.93 billion, respectively (see Notes 9 and 14). Loans and receivables of the Group are carried at P110.37 billion and P110.84 billion as of December 31,
2009 and 2008, respectively (see Note 9). As of December 31, 2009 and 2008, the allowance for impairment and credit losses on loans and receivables
of the Parent Company amounted to P7.02 billion and P6.93 billion, respectively (see Notes 9 and 14). Loans and receivables of the Parent Company are
carried at P109.51 billion and P109.80 billion as of December 31, 2009 and 2008, respectively (see Notes 9 and 14).
Fair value of financial instruments
The fair values of financial instruments that are not quoted in active markets are determined by using valuation techniques. Where valuation techniques
(e.g., financial models) are used to determine fair values, they are validated and periodically reviewed by qualified personnel independent of the area that
created them. All financial models are certified before they are used and are calibrated to ensure that outputs reflect actual data and comparative market
prices. To the extent practical, the financial models use only observable data, however, areas such as credit risk (both own and counterparty), volatilities
and correlations require management to make estimates. Changes in assumptions about these factors could affect reported fair value of financial
instruments (see Note 6).
Impairment of AFS equity investments
The Group treats AFS equity investments as impaired when there has been a significant or prolonged decline in their fair values below their costs or where
other objective evidence of impairment exists. The determination of what is significant or prolonged requires judgment. The Group treats significant
generally as 20.00% or more of the original cost of investment, and prolonged as being greater than 12 months. In addition, the Group evaluates other
factors, including normal volatility in share price for quoted equities and the future cash flows and the discount factors for unquoted equities.
In 2008 and 2009, no additional impairment losses have been recognized based on the Groups impairment assessment. The Groups AFS equity
investments are carried at P218.96 million and P300.60 million as of December 31, 2009 and 2008, respectively (see Note 8). The Parent Companys AFS
equity investments are carried at P193.31 million and P281.99 million as of December 31, 2009 and 2008, respectively (see Note 8).
Recognition of deferred income taxes
Deferred tax assets are recognized for all unused tax losses to the extent that it is probable that taxable profit will be available against which the losses
can be utilized. Management discretion is required to determine the amount of deferred tax assets that can be recognized, based on the forecasted level
of future taxable profits and the related future tax planning strategies.
The Group believes it will be able to generate sufficient taxable income in the future to utilize its recorded DTA. Taxable income is sourced mainly from
interest income from lending activities and earnings from service charge, fees, commissions and trust activities.
As discussed in Note 25, the Group recognized net deferred tax assets as of December 31, 2009 and 2008 amounting to P913.89 million and P912.38
million, respectively. The Parent Companys net deferred tax assets as of December 31, 2009 and 2008 amounted to P907.98 million. The Group did
not set up deferred tax assets on deductible temporary differences amounting to P3.77 billion and P3.27 billion as of December 31, 2009 and 2008,
respectively (see Note 25). No deferred tax assets have been set up by the Parent Company on deductible temporary differences amounting to P3.63
billion and P3.16 billion as of December 31, 2009 and 2008, respectively (see Note 25).
As of December 31, 2009 and 2008, deferred tax charged to equity relates to unrealized gain on AFS investments amounting to P128.25 million and
P131.63 million, respectively, for the Group and P127.25 million and P129.68 million, respectively, for the Parent Company.
Net plan assets and retirement expense
The determination of the Groups net plan assets and annual retirement expense is dependent on the selection of certain assumptions used in calculating
such amounts. Those assumptions include, among others, discount rates, expected returns on plan assets, salary increase rates and price and projected
plan asset yields (see Note 22).
In accordance with PFRS, actual results that differ from the Groups assumptions, subject to the 10% corridor test, are accumulated and amortized over
future periods and therefore, generally
affect the recognized expense and recorded net plan assets in such future periods. While the Group believes that the assumptions are reasonable and
appropriate, significant differences between actual experiences and assumptions may materially affect the Groups net plan assets and annual retirement
expense.
As of December 31, 2009 and 2008, the Group has net plan assets amounting to P247.77 million and P250.27 million, respectively. As of December 31,
2009 and 2008, the Parent Company has net plan assets amounting to P246.45 million and P250.16 million, respectively (see Notes 13 and 22).
Impairment on investment in subsidiaries and associates and other nonfinancial assets
The Parent Company assesses impairment on its investments in subsidiaries and associate whenever events or changes in circumstances indicate that
the carrying amount of an asset may not be recoverable. Among others, the factors that the Parent Company considers important which could trigger an
impairment review on its investments in subsidiaries and associate include the following:
Deteriorating or poor financial condition;

Recurring net losses; and
Significant changes with an adverse effect on the subsidiary or associate have taken place during the period, or will take place in the near future, the
technological, market, economic, or legal environment in which the subsidiary operates.
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2009 ANNUAL REPORT
The Group also assesses impairment on its nonfinancial assets (e.g., investment properties and bank premises, furniture, fixtures and equipment) and
considers the following impairment indicators:
Significant underperformance relative to expected historical or projected future operating results;

Significant changes in the manner of use of the acquired assets or the strategy for overall business; and
Significant negative industry or economic trends.
An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is determined
based on the assets value in use computation which considers the present value of estimated future cash flows expected to be generated from the
continued use of the asset.
The Groups impairment test for goodwill and branch licenses with indefinite useful lives is based on value in use calculations that use a discounted
cash flow model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Group is not yet
committed to or significant future investments that will enhance the asset base of the cash generating unit being tested. The recoverable amount is
most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash-inflows and the growth rate used for
extrapolation purposes.
The Group is required to make estimates and assumptions that can materially affect the carrying amount of the asset being assessed.
As of December 31, 2009 and 2008, the total carrying values of the Parent Companys investment in subsidiaries and associate amounted to P1.19 billion
and P1.17 billion, respectively (see Note 10). No impairment loss was recognized in 2009, 2008 and 2007.
The carrying values of the Group and Parent Companys nonfinancial assets as of December 31 follow:
Bank premises, furniture, fixtures and equipment (Note 11)

Investment properties (Note 12)
Branch license (Notes 4 and 13)
Goodwill (Notes 4 and 13)
Consolidated
2009
2008
P4,788,969,092
P4,502,014,439
3,867,044,526
4,008,549,702
477,600,000
477,600,000
222,841,201
222,841,201
Parent Company
2009
2008
P4,123,193,855
P3,886,411,840
3,698,256,363
3,888,334,928
450,501,931
450,501,931
222,841,201
222,841,201
Estimated useful lives of bank premises, furniture, fixture and equipment and investment properties
The Group reviews on an annual basis the estimated useful lives of bank premises, furniture, fixtures and equipment and depreciable investment properties
based on expected asset utilization as anchored on business plans and strategies that also consider expected future technological developments and
market behavior. It is possible that future results of operations could be materially affected by changes in these estimates brought about by changes in the
factors mentioned. A reduction in the estimated useful lives of bank premises, furniture, fixtures and equipment and depreciable investment properties
would decrease their respective balances and increase the recorded depreciation and amortization expense.
As of December 31, the carrying values of bank premises, furniture, fixtures and equipment and investment properties follow:
Bank premises, furniture, fixtures and equipment (Note 11)

Investment properties (Note 12)
Consolidated
2009
2008
P4,788,969,092
P4,502,014,439
3,867,044,526
4,008,549,702
Parent Company
2009
2008
P4,123,193,855
P3,886,411,840
3,698,256,363
3,888,334,928
Contingencies
The Group is currently involved in various legal proceedings. The estimate of the probable costs for the resolution of these claims has been developed
in consultation with outside legal counsels handling the underlying legal cases and is based on thorough analyses of the potential results by the business
units involved and top management. The Group currently does not believe that these proceedings will have a material adverse effect on its financial
position. It is possible, however, that future results of operations could be materially affected by changes in the estimates or in the effectiveness of the
strategies relating to these proceedings (see Note 28).
4.
Business Combination
Merger Information
On June 21, 2007, the Parent Company and the majority shareholders of China Bank Savings, Inc. (formerly known as The Manila Banking Corporation and
referred to hereafter as ChinaBank Savings) entered into a Memorandum of Agreement (MOA) whereby the former agreed to buy and the latter agreed
to sell 87.52% of their equity interest in ChinaBank Savings for P1.65 billion.
Under the MOA, the parties agree to place in escrow with the Parent Company the entire amount of the purchase price and all the original certificates
of 7,688,252 shares immediately upon the execution of the MOA. ChinaBank Savings majority shareholders shall be allowed to draw from the escrow
account the sum equivalent to 20.00% of the purchase price upon execution of the Deed of Assignment of shares. The balance of the purchase price
CHINA BANK
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2009 ANNUAL REPORT
shall be released from escrow in favor of the selling parties upon completion of the due diligence and reconciliation of adjustments except for provisioned
amounts. On the other hand, the corresponding ChinaBank Savings shares shall be released from escrow in favor of the Parent Company.
The Parent Company shall be given two years from the execution of the Deed of Assignment of shares to restore any provisioned amounts to current
status or to collect any outstanding loans and other receivables. After the two year period, any agreed provisioning on accounts not restored nor collected
shall be deducted from the purchase price and shall be released from escrow in favor of the Parent Company.
On September 3, 2007, the Parent Companys officers were appointed as members of ChinaBank Savings BOD. As of this date, the Parent Company
effectively obtained control of ChinaBank Savings. Subsequent thereto, a tender offer was made to all remaining shareholders of ChinaBank Savings
at the price of P214.65 per share. A total of 4.30% of ChinaBank Savingss common shares were subsequently acquired through a tender offer, which
expired on January 15, 2008.
Subsequently on February 6, 2008, the BOD of the Parent Company authorized the Bank to acquire remaining ChinaBank Savings shares from shareholders
that were unable to tender their shares within the tender offer period. Additional 0.73% (P0.64 million) and 2.51% (P0.22 million) of ChinaBank Savings
common shares were consequently acquired in 2009 and 2008, respectively, bringing the Parent Companys interest as defined under PFRS 3 to 95.06%
and 94.33% as of December 31, 2009 and 2008, respectively.
As of December 31, 2009, the Parent Company has already paid an aggregate amount of P1.45 billion for the ChinaBank Savings shares. The Parent
Company expects to settle the remaining balance in 2010 (see Note 18).
The fair values of the identifiable assets and liabilities acquired and goodwill arising as at the date of acquisition and the corresponding carrying amounts
immediately before the acquisition are as follows:
ASSETS
Cash
Due from BSP
AFS financial assets
Loans and receivables - net
Accrued interest receivable
Bank premises, furniture, fixture and
equipment - net
Investment properties
Sales contracts receivable
Branch licenses
Other assets - net
Total
LIABILITIES
Deposit liabilities
Bills payable
Managers checks
Accrued taxes and other expenses
Deferred credits and other liabilities
Total
NET ASSETS
Share in the fair value of net assets acquired (91.82%)
Fair Value Recognized

on Acquisition
2007
Carrying Value
2007
P108,339,740
346,698,023
468,820,583
339,061,087
5,634,659,309
44,332,545
P108,339,740
346,698,023
468,820,583
339,061,087
5,634,659,309
44,332,545
702,685,480
65,359,528
605,851,168
477,600,000
220,427,179
9,013,834,642
628,980,357
42,116,045
605,851,168
477,600,000
220,427,179
8,916,886,036
5,948,201,976
1,172,089,147
8,323,206
53,737,492
184,638,959
7,366,990,780
P1,646,843,862
P1,512,132,034
5,948,201,976
1,172,089,147
8,323,206
53,737,492
184,638,959
7,366,990,780
P1,549,895,256
The acquisition resulted in recognition of goodwill determined as follows:

Total cost of acquisition:
Cost to acquire 87.52%
Cost to acquire 4.30%
P1,650,283,292
84,689,943
1,734,973,235
1,512,132,034
P222,841,201
Less: Fair value of net assets acquired

Goodwill
The goodwill recognized by the Parent Company can be attributed to factors such as increase in geographical presence and customer base due to
branches acquired.
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2009 ANNUAL REPORT
Cash flow on acquisition follows:

Cash and cash equivalents acquired from ChinaBank Savings*
Cash paid
Net cash outflow
P923,858,346
(1,174,960,789)
(P251,102,443)
* Includes Cash and other cash items, Due from BSP and Due from other banks.
Other costs incurred from the acquisition such as legal, audit and other professional fees are not material to the financial statements.
Change in Corporate Name
On October 3, 2007, the BOD of the Parent Company granted approval to use, appropriate and register the name China Bank Savings, Inc. as the
corporate name and ChinaBank Savings as the business name/trade name of The Manila Banking Corporation (TMBC). The move is subject to the
retention of ownership by the Parent Company of the majority equity of ChinaBank Savings or its successor-in-interest and to the approval of the
regulators. On July 16, 2008, the BSP and the Securities and Exchange Commission (SEC) approved the change in names.
5.
Financial Instrument Categories

The following table presents the total carrying amount of the Groups and Parent Companys financial instruments per category:
Consolidated
2009
Financial assets
Loans and receivables:
Due from BSP
securities purchased under resale agreements
Loans and receivables - net
Other assets*
Total financial assets
Other financial liabilities:
Deposit liabilities
Bills payable
Managers checks
Accrued interest and other expenses
Other liabilities
Financial liabilities at FVPL:
Derivative Liabilities
Total financial liabilities
2008
Parent Company
2009
2008
P4,941,094,347
45,469,945,900
22,061,384,803
P2,714,408,153
29,604,059,307
23,746,746,657
P4,941,094,347
44,720,167,378
21,978,204,803
P2,714,408,153
29,037,329,875
23,746,746,657
5,795,456,440
11,621,324,385
6,770,243,850
4,075,518,568
13,708,932,849
4,236,588,224
5,756,920,133
11,553,930,023
6,761,701,623
4,049,328,721
13,595,936,653
4,217,016,260
11,983,000,000
110,371,291,557
2,118,893,167
2,027,202,689
150,687,412,088
P223,159,837,138
4,400,000,000
110,839,234,244
2,048,826,889
2,697,249,459
142,006,350,233
P198,071,564,350
11,848,000,000
109,514,922,954
2,091,795,107
1,839,786,173
149,367,056,013
P221,006,522,541
4,020,000,000
109,801,828,670
2,034,127,047
2,196,375,347
139,914,612,698
P195,413,097,383
P193,290,039,246
5,785,671,652
453,821,513
1,863,118,162
1,925,945,933
203,318,596,506
P173,779,256,090
3,905,463,047
350,047,881
1,949,803,426
2,260,904,483
182,245,474,927
P191,799,345,371
5,785,671,652
433,396,469
1,834,724,666
1,816,069,096
201,669,207,254
P171,895,657,010
3,905,463,047
347,316,610
1,920,427,014
2,178,859,554
180,247,723,235
338,810,138
P203,657,406,644
392,753,694
P182,638,228,621
338,810,138
P202,008,017,392
392,753,694
P180,640,476,929
* Other assets excludes Net plan assets and Creditable withholding taxes (see Note 13).
6.
Fair Value Measurement

The table below presents a comparison of carrying amounts and estimated fair values of all of the Groups and Parent Companys financial instruments as
of December 31:
Consolidated
2009
2008
Carrying Value
Fair Value
Carrying Value
Fair Value
Financial Assets
P5,795,456,440
P5,795,456,440
P4,075,518,568
P4,075,518,568
Due from BSP
11,621,324,385
11,621,324,385
13,708,932,849
13,708,932,849
6,770,243,850
6,770,243,850
4,236,588,224
4,236,588,224
Interbank loans receivable and securities purchased
under resale agreement
11,983,000,000
11,983,000,000
4,400,000,000
4,400,000,000
(Forward)
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2009 ANNUAL REPORT
Consolidated
2009
Carrying Value
Held-for-trading
Treasury notes
Government bonds
Treasury bills
Private bonds and corporate papers
Derivative assets
Designated at FVPL
Quoted:
Government and private bonds
Equities
Unquoted:
Credit Linked Notes (host)
Bonds and commercial papers
Equities
Government bonds
Private bonds
Loans and discounts
Corporate lending - net
Consumer lending - net
Others - net
Customers liabilities under letters of credit
or trust receipt
Bills purchased
Other assets*
Financial Liabilities
Deposit liabilities
Bills payable
Managers checks
Derivative liabilities
Other liabilities
Fair Value
2008
Carrying Value
Fair Value
P1,208,687,841
1,178,301,993
1,149,294,187
464,211,953
701,754,075
238,844,298
P1,208,687,841
1,178,301,993
1,149,294,187
464,211,953
701,754,075
238,844,298
P694,719,900
734,048,148
86,815,307
143,178,355
399,606,493
656,039,950
P694,719,900
734,048,148
86,815,308
143,178,355
399,606,493
656,039,950
40,546,408,605
173,898,977
40,546,408,605
173,898,977
24,559,170,445
218,123,508
24,559,170,445
218,123,508
4,604,553,996
100,019,655
45,064,667
4,604,553,996
100,019,655
45,064,667
4,387,572,145
356,720,445
82,472,764
4,387,572,145
356,720,445
82,472,764
21,707,922,526
353,462,277
24,401,207,474
394,616,334
23,387,094,899
359,651,758
23,710,744,632
307,340,143
87,544,531,198
13,854,403,474
147,873,107
87,528,485,933
13,504,824,970
141,682,427
86,799,197,176
14,776,106,658
648,286,715
84,525,204,507
14,403,271,460
621,146,313
6,499,574,787
2,324,908,991
2,118,893,167
2,027,202,689
P223,159,837,138
6,499,574,787
2,324,908,991
2,118,893,167
1,908,808,219
P225,404,067,224
6,579,517,831
2,036,125,864
2,048,826,889
2,697,249,459
P198,071,564,350
6,579,517,831
2,036,125,864
2,048,826,889
2,509,506,421
P195,481,191,162
P193,290,039,246
5,785,671,652
453,821,513
1,863,118,162
338,810,138
1,925,945,933
P203,657,406,644
P193,663,936,136
5,769,140,064
453,821,513
1,863,118,162
338,810,138
1,925,945,933
P204,014,771,946
P173,779,256,090
3,905,463,047
350,047,881
1,949,803,426
392,753,694
2,260,904,483
P182,638,228,621
P173,779,256,090
3,879,145,063
350,047,881
1,949,803,426
392,753,694
2,260,904,483
P182,611,910,637
* Other assets excludes Net plan assets and Creditable withholding tax (see Note 13).
Parent Company
2009
Carrying Value
Financial Assets
Due from BSP
purchased under agreement to resell
Held-for-trading
Treasury notes
Government bonds
Treasury bills
Private bonds and corporate papers
Derivative assets
Designated at FVPL
(Forward)
CHINA BANK
Fair Value
2008
Carrying Value
Fair Value
P5,756,920,133
11,553,930,023
6,761,701,623
P5,756,920,133
11,553,930,023
6,761,701,623
P4,049,328,721
13,595,936,653
4,217,016,260
P4,049,328,721
13,595,936,653
4,217,016,260
11,848,000,000
11,848,000,000
4,020,000,000
4,020,000,000
1,208,687,841
1,178,301,993
1,149,294,187
464,211,953
701,754,075
238,844,298
1,208,687,841
1,178,301,993
1,149,294,187
464,211,953
701,754,075
238,844,298
694,719,900
734,048,148
86,815,307
143,178,355
399,606,493
656,039,950
694,719,900
734,048,148
86,815,307
143,178,355
399,606,493
656,039,950
75
2009 ANNUAL REPORT
Parent Company
2009
Carrying Value
Quoted:
Equities
Unquoted:
Equities
Government bonds
Private bonds
Loans and discounts
Corporate Lending - net
Consumer Lending - net
Others - net
Customers liabilities under letters of
credit or trust receipt
Bills purchased
Other assets *
Deposit liabilities
Bills payable
Managers checks
Other liabilities
Fair Value
2008
Carrying Value
Fair Value
P39,822,282,045
173,898,977
P39,822,282,045
173,898,977
P24,018,084,775
218,123,508
P24,018,084,775
218,123,508
4,604,553,996
100,019,655
19,412,705
4,604,553,996
100,019,655
19,412,705
4,387,572,145
349,679,601
63,869,846
4,387,572,145
349,679,601
63,869,846
21,624,742,526
353,462,277
24,316,890,919
394,616,334
23,387,094,899
359,651,758
23,710,744,632
307,340,143
86,979,050,038
13,588,814,176
122,574,962
86,963,004,773
13,239,672
116,384,282
85,936,396,398
14,603,150,205
646,638,372
83,661,973,288
14,230,962,339
619,281,079
6,499,574,787
2,324,908,991
2,091,795,107
1,839,786,173
P221,006,522,541
6,499,574,787
2,324,908,991
2,091,795,107
1,747,796,864
P210,050,025,233
6,579,517,831
2,036,125,864
2,034,127,047
2,196,375,347
P195,413,097,383
6,579,517,831
2,036,125,864
2,034,127,047
2,148,325,177
P192,962,417,062
191,799,345,371
5,785,671,652
433,396,469
1,834,724,666
338,810,138
1,816,069,096
P202,008,017,392
192,173,242,262
5,769,140,064
433,396,469
1,834,724,666
338,810,138
1,816,069,096
P202,365,382,695
171,895,657,010
3,905,463,047
347,316,610
1,920,427,014
392,753,694
2,178,859,554
P180,640,476,929
171,895,657,010
3,879,145,063
347,316,610
1,920,427,014
392,753,694
2,178,859,554
P180,614,158,945
* Other assets excludes Net plan assets and Creditable withholding tax (see Note 13).
The methods and assumptions used by the Group and Parent Company in estimating the fair values of the financial instruments are:
Cash and other cash items, due from BSP and other banks, interbank loans receivable and securities purchased under agreements to resell and accrued
interest receivable - The carrying amounts approximate their fair values in view of the relatively short-term maturities of these instruments.
Debt securities - Fair values are generally based upon quoted market prices. If the market prices are not readily available, fair values are estimated using
either values obtained from independent parties offering pricing services or adjusted quoted market prices of comparable investments or using the
discounted cash flow methodology.
Equity securities - For publicly traded equity securities, fair values are based on quoted prices published in the Philippine equity markets. For unquoted
equity securities for which no reliable basis for fair value measurement is available, these are carried at cost net of impairment, if any.
Loans and receivables - Fair values of loans and receivables are estimated using the discounted cash flow methodology, using the Groups current
incremental lending rates for similar types of loans and receivables.
Accounts receivable and RCOCI included in other assets - Quoted market prices are not readily available for these assets. These are reported at cost and
are not significant in relation to the Groups total portfolio of securities.
Sales contracts receivable included in other assets - Fair values of sales contracts receivables are estimated using the discounted cash flow methodology,
using the Groups current incremental lending rates for similar types of receivables.
Derivative instruments (included under FVPL) - Fair values are estimated based on quoted market prices provided by independent parties or accepted
valuation models (either based on discounted cash flow techniques or option pricing models, as applicable).
Bifurcated embedded derivatives (included under Other liabilities) - Fair values are estimated based on a valuation model from Bloomberg using inputs
provided by counterparty banks.
Deposit liabilities (time, demand and savings deposits) - Fair values of time deposits are estimated using the discounted cash flow methodology, using
the Groups current incremental borrowing rates for similar borrowings with maturities consistent with those remaining for the liability being valued. For
demand and savings deposits, carrying amounts approximate fair values considering that these are currently due and demandable.
CHINA BANK
76
2009 ANNUAL REPORT
Bills payable - Fair values are estimated using the discounted cash flow methodology using the current incremental borrowing rates for similar borrowings
with maturities consistent with those remaining for the liability being valued.
Other liabilities - Carrying amounts approximate fair values due to the short-term nature of the accounts.
Fair Value Hierarchy
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1: quoted prices in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived
from prices); and
Level 3: inputs that are not based on observable market data or unobservable inputs.
As of December 31, 2009, the fair value hierarchy of the Groups and Parent Companys financial instruments measured at fair values are presented
below:
Level 1
Held-for-trading:
Government bonds
Treasury notes
Private bonds and commercial papers
BSP Treasury bills
Derivative assets
Designated at FVPL
Government bonds
Quoted equity shares
Credit-Linked Notes (host)
Private bonds and commercial papers - net
Financial liabilities at FVPL
P1,178,301,993
1,208,687,841
464,211,953
1,149,294,187
701,754,075
238,844,298
40,013,927,214
173,898,977
532,481,391
4,604,553,996
100,019,655
P44,720,803,556
338,810,138
P5,983,982,162
Level 1
Held-for-trading:
Government bonds
Treasury notes
BSP Treasury bills
Derivative assets
Designated at FVPL
Government bonds
Quoted equity shares
Credit-Linked Notes (host)
Financial liabilities at FVPL
Consolidated
2009
Level 2
Parent Company
2009
Level 2
Level 3
Total
P1,178,301,993
1,208,687,841
464,211,953
1,149,294,187
701,754,075
238,844,298
338,810,138
P50,704,785,718
Level 3
Total
40,013,927,214
173,898,977
4,604,553,996
632,501,046
P1,178,301,993
1,208,687,841
464,211,953
1,149,294,187
701,754,075
238,844,298
P1,178,301,993
1,208,687,841
464,211,953
1,149,294,187
701,754,075
238,844,298
39,289,800,654
173,898,977
532,481,391
4,604,553,996
100,019,655
39,289,800,654
173,898,977
4,604,553,996
632,501,046
P43,996,676,996
338,810,138
P5,983,982,162
338,810,138
P49,980,659,158
There were no transfers between Level 1 and Level 2 fair value measurements and no transfers into and out of Level 3 fair value measurements.
7.
Financial Risk Management Objectives and Policies

The Groups activities are principally related to the profitable use of financial instruments. Risks are inherent in these activities but are managed by
the Group through a rigorous, comprehensive and continuous process of identification, measurement, monitoring and mitigation of these risks, partly
through the effective use of risk and authority limits, process controls and monitoring, and independent controls. As reflected in its corporate actions
and organizational improvements, the Group has placed due importance to expanding and strengthening its risk management process and considers it
CHINA BANK
77
2009 ANNUAL REPORT
as a vital component to the Groups continuing profitability and financial stability. Central to the Groups risk management process is its adoption of a risk
management program intended to avoid unnecessary risks, manage and mitigate unavoidable risks and maximize returns from taking acceptable risks
necessary to sustain its business viability and good financial position in the market.
The key financial risks that the Group faces are: credit risk, market risk (i.e. interest rate risk, foreign currency risk and equity price risk) and liquidity risk.
The Groups risk management objective is primarily focused on controlling and mitigating these risks. The Parent Company and its subsidiaries manage
their respective financial risks separately. The subsidiaries, particularly ChinaBank Savings, have their own risk management processes but are structured
similar to that of the Parent Company. To a certain extent, the respective risk management programs and objectives are the same across the Group. The
gravity of the risks, the magnitude of the financial instruments involved, and regulatory requirements are primary considerations to the scope and extent
of the risk management processes put in place for the subsidiaries.
Risk Management Structure
The BOD of the Parent Company is ultimately responsible for the oversight of the Parent Companys risk management process. On the other hand,
the risk management processes of the subsidiaries are the separate responsibilities of their respective BOD. The BOD created a separate board-level
independent committee with explicit authority and responsibility for managing and monitoring risks.
The BOD has delegated to the Risk Management Committee (RMC) the implementation of the risk management process which includes, among
others, the development of various risk strategies and principles, control guidelines policies and procedures, implementation of risk measurement tools,
monitoring of key risk indicators, and the imposition and monitoring of risk limits. The RMC is composed of five members of the BOD.
The Risk Management Unit (RMU) is the direct support of the RMC in the day-to-day risk management and the implementation of the risk management
strategies approved by the RMC. The implementation cuts across all departments of the Parent Company and involves all of the Parent Companys
financial instruments, whether on-books or off books. The RMU is likewise responsible for monitoring the implementation of specific risk control
procedures and enforcing compliance thereto. The RMU is also directly involved in the day-to-day risk measurement and monitoring to make sure
that the Parent Company, in its transactions and dealings, engages only in acceptable and manageable financial risks. The RMU also ensures that risk
measurements are accurately and completely captured on a timely basis in the management reporting system of the Parent Company. The RMU regularly
reports the results of the risk measurements to the RMC. The RMU is headed by the Chief Risk Officer (CRO).
Apart from RMU, each business unit has created and put in place various process controls which ensure that all the external and internal transactions and
dealings of the unit are in compliance with the units risk management objectives.
The Internal Audit Department also plays a crucial role in risk management primarily because it is independent of the business units and reports exclusively
to the Audit Committee which in turn is comprised of independent directors. The Internal Audit Department focuses not on the implementation of controls
but on ensuring that adequate controls are in place and on monitoring compliance to controls. The regular audit covers all processes and controls, including
those under the risk management framework handled by the RMU. The audit of these processes and controls is undertaken at least annually. The audit
results and exceptions, including recommendations for their resolution or improvement, are discussed initially with the business units concerned before
these are presented to the Audit Committee.
Risk Management Reporting
The CRO and other members of the RMU report to the RMC and to the Management Committee (ManCom) on a monthly and a weekly basis, respectively.
The CRO reports on key risk indicators and specific risk management issues that would need resolution from top management. This is undertaken after
the risk issues and key risk indicators have been discussed with the business units concerned.
The key risk indicators were formulated on the basis of the financial risks faced by the Parent Company. The key risk indicators contain information from
all business units that provide measurements on the level of the risks taken by the Parent Company with its transactions, products and financial structure.
Among others, the report on key risk indicators includes information on the Parent Companys aggregate credit exposure, credit metric forecasts, hold
limit exceptions, VaR analysis, utilization of market and credit limits, liquidity ratios, overall loan loss provisioning and risk profile changes. Loan loss
provisioning and credit limit utilization are however discussed in more detail in the Credit Committee. On a monthly basis, detailed reporting of industry,
customer and geographic risks is included in the discussion with the RMC and ManCom. A comprehensive risk report is submitted to the BOD every
quarter for an overall assessment of the level of risks taken by the Parent Company.
The Parent Company has acquired a new treasury operations system which will greatly improve its risk measurement and reporting particularly those
related to treasury products. To date, the Parent Company is still in the process of conversion to the new treasury system.
On the other hand, the Chief Internal Auditor reports to the Audit Committee on a monthly basis on the results of branch or business unit audits and for
the resolution of pending but important internal audit issues.
Risk Mitigation
The Parent Company uses derivatives, structured products and other financial instruments to manage exposures resulting from changes in interest rates,
foreign currencies, equity risks, credit risks, and exposures arising from forecast transactions. However, the nature and extent of use of these financial
instruments to mitigate risks are limited to those allowed by the BSP for the Parent Company and its subsidiaries.
To further mitigate risks throughout its different business units, the Parent Company created new risk management policies and made vast improvements to
existing policies (e.g., The Risk Management Manual, Operational Risk Management Policy Manual, and Product Approval Process Manual). These policies
further serve as the framework and set of guidelines in the creation or revisions of operating policies and manuals for each business unit. In the process
CHINA BANK
78
2009 ANNUAL REPORT
design and implementation, process controls are preferred over detection controls. Clear delineation of responsibilities and separation of incompatible duties
among officers and staff as well as among business units are reiterated in these policies. To the extent possible, reporting and accounting responsibilities are
segregated from units directly involved in operations and front line activities (i.e., players must not be scorers). This is to improve the credibility and accuracy of
management information. Any inconsistencies in the operating policies and manuals with the risk framework established by risk management policies
created by the RMU are taken up and resolved in the RMC and ManCom.
Based on the approved Operational Risk Assessment Program, RMU spearheaded the bank wide (all Head Office units and branches) risk identification
and self-assessment process. This would enable determination of priority risk areas, assessment of mitigating controls in place, and institutionalization
of additional measures to ensure a controlled operating environment.
RMU was also mandated to maintain and update the Banks Centralized Loss Database wherein all reported incidents of losses shall be encoded to enable
assessment of weaknesses in the processes and come up with viable improvements to avoid recurrence.
Monitoring and controlling risks are primarily performed based on various limits established by the top management covering the Groups transactions and
dealings. These limits reflect the Groups business strategies and market environment as well as the levels of risks that the Group is willing to tolerate,
with additional emphasis on selected industries. In addition, the Parent Company monitors and measures the overall risk bearing capacity in relation to
the aggregate risk exposure across all risk types and activities.
The Groups Management identified the need for an asset-liability management (ALM) application to strategically manage risks arising from mismatches
between the banks assets and liabilities, particularly in the area of interest rate and liquidity risk. An ALM would support high level decisions with regards
to funds pricing and resource allocation.
In 2009, the Parent Companys Technology Steering Committee approved Managements recommendation to convene an ALM Task Force to determine
the banks requirements and selection criteria as well as evaluate proposals from software providers. The ALM project is still in its initial stages: requests
for proposal were sent out to our three short listed solutions providers and this will be followed by an assessment of their submitted proof of concept.
BSP issued Circular 639 dated January 15, 2009 which mandated the use of the Internal Capital Adequacy Assessment Process (ICAAP) by all universal
and commercials banks to determine their minimum required capital relative to their business risk exposures. In this regard, the Board approved the
engagement of the services of a consultant to assist in the Bank-wide implementation and embedding of the ICAAP, as provided for under Pillar 2 of Basel
II and BSP Circular 639.
As of December 31, 2009, the Parent Company has completed its top-down risk prioritization and has finalized the top risks of the Bank based on the
results of the Risk Self-assessment Survey and the voting conducted among selected members of the BOD and Senior Management. In addition, ICAAP
Technical Committees have been designated per risk area and have been regularly meeting since October 2009.
Excessive Risk Concentration
Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographic region, or have
similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other
conditions. Concentrations indicate the relative sensitivity of the Parent Companys performance to developments affecting a particular industry or
geographical location.
In order to avoid excessive concentrations of risk, the Parent Companys policies and procedures include specific guidelines focusing on maintaining
a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly. Selective hedging is used within the Parent
Company to manage risk concentrations at both the relationship and industry levels.
Credit Risk
Credit Risk and Concentration of Assets and Liabilities and Off Balance Sheet Items
Credit risk is the risk of financial loss due to one party to a financial product failing to discharge an obligation. The Group faces potential credit risks every
time it extends funds to borrowers, commits funds to counterparties, guarantees the paying performance of its clients, invests funds to issuers (i.e.,
investment securities issued by either sovereign or corporate entities) or enters into either market-traded or over-the-counter derivatives, through implied
or actual contractual agreements (i.e., on or off-balance sheet exposures). The Group manages its credit risk at various levels (i.e., strategic level, portfolio
level down to individual credit or transaction).
The Group has risk limits setting for purposes of monitoring and managing credit risk from individual counterparties and groups of counterparties. It also
conducts periodical assessment of the creditworthiness of its counterparties. In addition, the Group obtains collateral where appropriate, enters into
master netting agreements and collateral arrangements with counterparties, and limits the duration of exposures.
In compliance with BSP requirements, the Group established in March 2005 an internal Credit Risk Rating System (CRRS) for the purpose of measuring
credit risk for corporate borrowers in a consistent manner, as accurately as possible, and thereafter uses the risk information for business and financial
decision making. The CRRS covers corporate borrowers with asset size of above P15.00 million, requiring financial statements from 2005 onwards to be
audited by SEC-accredited auditing firms.
The CRRS was designed within the technical requirements defined under BSP Circular No. 439. The System has two components, namely: a) Borrower Risk
Rating (BRR) which provides an assessment of the creditworthiness of the borrower, without considering the proposed facility and security arrangements,
and b) Loan Exposure Rating (LER) which provides an assessment of the proposed facilities as mitigated or enhanced by security arrangements. The
CHINA BANK
79
2009 ANNUAL REPORT
CRRS rating scale consists of ten grades, six of which fall under unclassified accounts, with the remaining four falling under classified accounts in
accordance with regulatory provisioning guidelines. To date, the Parent Company is in the process of developing an internal credit system in preparation
for the Advanced Measurement Approach for credit risk under Basel II.
For details of the composition of the loans and receivable portfolio, refer to Note 9 to the financial statements.
Credit risk in respect of derivative financial products is limited to those with positive fair values, which are included under Financial Assets at FVPL (see
Note 8). As a result, the maximum credit risk, without taking into account the fair value of any collateral and netting agreements, is limited to the amounts
on the balance sheet plus commitments to customers such as unused commercial letters of credit, outstanding guarantees and others as disclosed in
Note 28 to the financial statements.
The distribution of the Groups and Parent Companys assets, liabilities, and credit commitment items (see Note 28) by geographic region as of
December 31, 2009 and 2008 (in millions) follows:
Consolidated
2009
Geographic Region:
Philippines
Asia
Europe
United States
2008
Assets
Liabilities
Credit
Commitments
P222,041
1,513
413
10,069
P234,036
P202,598
367
196
506
P203,667
P8,382
2,070
815
596
P11,863
Assets
Liabilities
Credit
Commitments
P197,641
72
858
9,976
P208,547
P181,195
341
241
893
P182,670
P7,008
1,682
440
245
P9,375
Parent Company
2009
Geographic Region:
Philippines
Asia
Europe
United States
2008
Assets
Liabilities
Credit
Commitments
P220,198
1,513
413
9,941
P232,065
P201,077
367
196
378
P202,018
P8,382
2,070
815
596
P11,863
Assets
Liabilities
Credit
Commitments
P195,587
72
858
9,755
P206,272
P179,415
341
241
673
P180,670
P7,008
1,682
440
245
P9,375
Information on credit concentration as to industry is presented in Note 9 to the financial statements.

Maximum exposure to credit risk
The table below shows the gross maximum exposure to on- and off-balance sheet credit risk exposures (including derivatives) of the Group and Parent
Company, without considering the effects of collateral, credit enhancements and other credit risk mitigation techniques:
Consolidated
2009
Financial Assets
Due from BSP
Interbank loans receivable and securities purchased
under agreement to resell
Held-for-trading
Derivative assets
Designated at FVPL
Quoted:
Equities
Unquoted:
Equities
(Forward)
CHINA BANK
2008
Parent Company
2009
2008
P5,795,456,440
11,621,324,385
6,770,243,850
P4,075,518,568
13,708,932,849
4,236,588,224
P5,756,920,133
11,553,930,023
6,761,701,623
P4,049,328,721
13,595,936,653
4,217,016,260
11,983,000,000
4,400,000,000
11,848,000,000
4,020,000,000
4,000,495,974
701,754,075
238,844,298
1,658,761,710
399,606,493
656,039,950
4,000,495,974
701,754,075
238,844,298
1,658,761,710
399,606,493
656,039,950
40,546,408,605
173,898,977
24,559,170,445
218,123,508
39,822,282,045
173,898,977
24,018,084,775
218,123,508
4,604,553,996
100,019,655
45,064,667
4,387,572,145
356,720,445
82,472,764
4,604,553,996
100,019,655
19,412,705
4,387,572,145
349,679,601
63,869,846
80
2009 ANNUAL REPORT
Consolidated
2009
Government bonds
Private bonds
Loans and discounts
Corporate Lending - net
Consumer Lending - net
Others - net
Customers liabilities under letters of credit or trust receipt
Bills purchased
Other assets
P21,707,922,526
353,462,277
Parent Company
2009
2008
P23,387,094,899
359,651,758
2008
P21,624,742,526 P23,387,094,899
353,462,277
359,651,758
87,544,531,198
86,799,197,176
86,979,050,038 85,936,396,398
13,854,403,474
14,776,106,658
13,588,814,176 14,603,150,205
147,873,107
648,286,715
122,574,962
646,638,372
6,499,574,787
6,579,517,831
6,499,574,787
6,579,517,831
2,324,908,991
2,036,125,864
2,324,908,991
2,036,125,864
2,118,893,167
2,048,826,889
2,091,795,107
2,034,127,047
2,027,202,689
2,697,249,459
1,839,786,173
2,196,375,347
223,159,837,138 198,071,564,350 221,006,522,541 195,413,097,383
11,862,937,291
9,374,677,876
11,862,936,960
9,374,677,511
P235,022,774,429 P207,446,242,226 P232,869,459,501 P204,787,774,894
Commitments and contingent assets

Total
Where financial instruments are recorded at fair value, the amounts shown above represent the current credit risk exposure.
Collateral and other credit enhancements
The amount and type of collateral required depends on an assessment of the credit risk of the counterparty. Guidelines are implemented regarding the
acceptability of types of collateral and valuation parameters.
The main types of collateral obtained are as follows:
For consumer lending - real estate and chattel over vehicle

For corporate lending - real estate, chattel over properties, assignment of deposits, shares of stocks, bonds, and guarantees
Management monitors the market value of collateral, requests additional collateral in accordance with the underlying agreement, and monitors the market
value of collateral obtained during its review of the adequacy of the allowance for impairment losses.
It is the Groups policy to dispose of repossessed properties in an orderly fashion. The proceeds are used to reduce or repay the outstanding claim. In
most cases, the Parent Company does not occupy repossessed properties for business use.
Credit quality per class of financial assets
The credit quality of financial assets is managed by the Group using an internal credit rating system for the purpose of measuring credit risk in a consistent
manner as accurately as possible. The model on risk ratings is assessed and updated regularly because the Group uses this information as a tool for
business and financial decision making.
The table below shows the credit quality by class of financial assets as of December 31, 2009 and 2008, excluding other receivables (gross of allowance
for credit losses).
Due from BSP

purchased under agreement to resell
Held-for-trading
Derivative assets
Designated at FVPL
Quoted:
Equities
Unquoted:
Credit Linked Notes
Equities
(Forward)
Consolidated
2009
Neither past due nor impaired
Standard
Sub-Standard
High grade
Grade
Grade
P
P
P11,621,324,385
6,770,243,850
Past due or
Individually
impaired
P
Total
P11,621,324,385
6,770,243,850
11,983,000,000
11,983,000,000
4,000,495,974
701,754,075
238,844,298
4,000,495,974
701,754,075
238,844,298
40,546,408,605
173,898,977
40,546,408,605
173,898,977
4,604,553,996
100,019,655
45,064,667
499,872,643
4,604,553,996
599,892,298
45,064,667
CHINA BANK
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2009 ANNUAL REPORT
Consolidated
2009
Standard
Sub-Standard
High grade
Grade
Grade
Government bonds
Private bonds
Loans and discounts
Corporate lending
Consumer lending
Others
Customers liabilities under letters
of credit or trust receipt
Bills purchased
Total
Due from BSP

securities purchased under
agreement to resell
Held-for-trading
Derivative assets
Designated at FVPL
Quoted:
Equities
Unquoted:
Credit Linked Notes
Equities
Government bonds
Private bonds
Loans and discounts
Past due or
Individually
impaired
Total
P21,707,922,526
353,462,277
P21,707,922,526
353,462,277
83,011,449,240
6,097,463,102
158,736,058
462,429,151
8,224,793,803
4,536,572,189
156,987,209
6,501,440,569
471,230,127
94,511,891,149
14,950,474,241
158,736,058
5,825,790,567
2,324,908,991
1,968,249,039
P202,088,505,960
53,041,125
P8,885,348,401
28,651,844
P4,722,211,242
Consolidated
2008
Standard
Sub-Standard
High grade
Grade
Grade
P13,708,932,849
P
P
4,236,588,224
Past due or
Individually
impaired
P
Total
P13,708,932,849
4,236,588,224
1,658,761,710
399,606,493
656,039,950
1,658,761,710
399,606,493
656,039,950
24,559,170,445
218,123,508
24,559,170,445
218,123,508
4,387,572,145
356,720,445
82,472,764
499,872,643
4,387,572,145
856,593,088
82,472,764
23,387,094,899
359,651,758
23,387,094,899
359,651,758
Corporate lending
84,978,456,390
527,739,718
1,980,689,452
6,279,140,691
93,766,026,251
Consumer lending
5,252,356,998
8,879,528,851
1,241,635,556
15,373,521,405
302,260,146
356,900,645
459,949,096
1,119,109,887
6,579,517,831
2,036,125,864
1,878,180,076
P178,998,439,286
59,156,848
P10,262,519,271
27,725,359
P2,008,414,811
Others
Customers liabilities under
letters of credit or trust receipt
Bills purchased
Total
4,400,000,000
673,784,220
6,499,574,787
2,324,908,991
68,951,159
2,118,893,167
P8,215,278,718 P223,911,344,321
CHINA BANK
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2009 ANNUAL REPORT
4,400,000,000
6,579,517,831
2,036,125,864
83,764,606
2,048,826,889
P8,564,362,592 P199,833,735,960
Due from BSP

securities purchased under resale agreement
Held-for-trading
Derivative assets
Designated at FVPL
Quoted:
Equities
Unquoted:
Credit Linked Notes
Equities
Government bonds
Private bonds
Loans and discounts
Corporate lending
Consumer lending
Others
Bills purchased
Total
Due from BSP

purchased under resale agreement
Held-for-trading
Derivative assets
Designated at FVPL
Quoted:
Equities
Unquoted:
Credit Linked Notes
Equities
Government bonds
Private bonds
Loans and discounts
Corporate lending
Consumer lending
Others
(Forward)
Parent Company
2009
Standard
Sub-Standard
High grade
Grade
Grade
P11,553,930,023
P
P
6,761,701,623
Past due or
Individually
impaired
P
Total
P11,553,930,023
6,761,701,623
11,848,000,000
11,848,000,000
4,000,495,974
701,754,075
238,844,298
4,000,495,974
701,754,075
238,844,298
39,822,282,045
173,898,977
39,822,282,045
173,898,977
4,604,553,996
100,019,655
19,412,705
394,137,099
4,604,553,996
494,156,754
19,412,705
21,624,742,526
353,462,277
21,624,742,526
353,462,277
82,444,905,410
5,870,849,477
132,359,729
462,429,151
8,224,793,803
4,536,572,189
156,106,430
6,478,403,027
421,816,097
93,922,309,777
14,673,565,807
132,359,729
5,825,790,567
2,324,908,991
1,941,150,979
P195,619,076,971
53,041,125
P13,464,250,435
28,651,844
P4,721,330,463
Parent Company
2008
Standard
Sub-Standard
High grade
Grade
Grade
P13,595,936,653
P
P
4,217,016,260
673,784,220
6,499,574,787
2,324,908,991
68,951,159
2,091,795,107
P8,037,091,602 P221,841,749,471
Past due or
Individually
impaired
P
Total
P13,595,936,653
4,217,016,260
4,020,000,000
4,020,000,000
1,658,761,710
399,606,493
656,039,950
1,658,761,710
399,606,493
656,039,950
24,018,084,775
218,123,508
24,018,084,775
218,123,508
4,387,572,145
349,679,601
63,869,846
394,137,099
4,387,572,145
743,816,700
63,869,846
23,387,094,899
359,651,758
23,387,094,899
359,651,758
84,080,411,894
5,078,690,726
300,291,788
527,739,718
8,875,890,243
356,900,645
1,980,587,498
6,271,931,509
1,241,190,953
459,757,433
92,860,670,619
15,195,771,922
1,116,949,866
CHINA BANK
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2009 ANNUAL REPORT
Parent Company
2008
Standard
Sub-Standard
High grade
Grade
Grade
Bills purchased
Total
P6,579,517,831
2,036,125,864
1,863,480,234
P176,856,406,488
59,156,848
P10,233,236,901
27,725,359
P2,008,312,857
Past due or
Individually
impaired
Total
P
P6,579,517,831
2,036,125,864
83,764,606
2,034,127,047
P8,450,781,600 P197,548,737,846
It is the Parent Companys policy to maintain accurate and consistent risk ratings across the credit portfolio. This facilitates focused management of the
applicable risks and the comparison of credit exposures across all lines of business, geographic regions and products. The rating system is supported
by a variety of financial analytics, combined with processed market information to provide the main inputs for the measurement of counterparty risk. All
internal risk ratings are tailored to the various categories and are derived in accordance with the Parent Companys rating policy. The attributable risk
ratings are assessed and updated regularly. The standard credit rating equivalent grades are relevant only for certain of the exposures in each risk rating
class.
The following table shows the description of the internal CRRS grade:
CRRS Grade
1
2
3
4
5
6
7
8
9
10
Description
Excellent
Strong
Good
Satisfactory
Acceptable
Watchlist
Special Mention
Substandard
Doubtful
Loss
The credit grades are defined as follows:

Excellent and Strong This category applies to a borrower with a very low probability of going into default in the coming year. The borrower has a high
degree of stability, substance and diversity. It has access to raise substantial amounts of funds through the public markets at any time. The borrower has
a strong market and financial position with a history of successful performance. The critical balance sheet ratios are conservative. The borrower has a very
strong debt service capacity and a conservative use of balance sheet leverage. The track record in profit terms is very good. The borrower is of highest
quality under virtually all economic conditions. This is considered a high grade rating.
Good This category covers the smaller corporations with limited access to public capital markets or access to alternative financial markets. This access
is however limited to favorable economic and/or market conditions. Typical for this type of borrower is the combination of comfortable asset protection
and acceptable balance sheet structure. The debt service capacity as measured based on cash flows is strong. This is also considered as a high grade
rating.
Satisfactory This category represents those borrowers where clear risk elements exist and the probability of default is somewhat greater. This probability
is reflected in volatility of earnings and overall performance. Borrowers in this category normally have limited access to public financial markets. Borrowers
should be able to withstand normal business cycles, but any prolonged unfavorable economic period would create deterioration beyond acceptable levels.
Typical for this kind of borrower is the combination of reasonably sound asset and cash flow protection. The debt service capacity as measured by cash
flow is deemed adequate. The borrower has reported profits for the past fiscal year and is expected to report a profit in the current year. This is considered
a standard grade rating.
Acceptable The risk elements for the Parent Company are sufficiently pronounced, although borrowers should still be able to withstand normal business
cycles. Any prolonged unfavorable economic and/or market period would create an immediate deterioration beyond acceptable levels. This is considered
a standard grade rating. However, in the next assessment period, closer attention is warranted as a downgrade may be possible.
Watchlist This represents borrowers for which unfavorable industry or company-specific risk factors represent a concern. Operating performance and
financial strength may be marginal and it is uncertain whether the borrower can attract alternative sources of financing. The borrower will find it very hard
to cope with any significant economic downturn and a default in such a case is more than a possibility. This category includes those borrowers where the
credit exposure is not a risk of loss at the moment, but the performance of the borrower has weakened, and unless present trends are reversed, could
lead to losses. Depending on the nature of the account weakness and whether the adverse condition is merely temporary or prolonged, this is normally
considered as a substandard grade rating.
CHINA BANK
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2009 ANNUAL REPORT
Special Mention In this category, the borrowers are characterized by a reasonable probability of default, manifested by some or all the following:
(a) evidence of weakness in the borrowers financial condition or creditworthiness; (b) the borrower has reached a point where there is a real risk that
the borrowers ability to pay the interest and repay the principal timely could be jeopardized; (c) the borrower is expected to have financial difficulties
and exposure may be at risk. Closer account management attention is warranted. Concerted efforts should be made to improve lenders position
(e.g., demanding additional collateral or reduction of account exposure). These potential weaknesses, if left uncorrected or unmitigated, would affect the
repayment of the loan and thus increase credit risk to the Parent Company. Depending on the reason for the classification, this grade is considered as a
substandard grade rating or an impaired account.
Substandard Under this category, the collection of principal or interest becomes questionable regardless of scheduled payment date, by reason of
adverse developments on the account of a financial, managerial, economic, or political nature, or by important weaknesses in cover. The probability of
default is assessed at up to 50%. Substandard loans are loans or portions thereof that appear to involve a substantial and unreasonable degree of risk to
the Parent Company because of unfavorable record or unsatisfactory characteristics. There exists in such loans the possibility of future loss to the Parent
Company unless given closer supervision. Depending on the reason for the classification, this grade is considered as a substandard grade rating or an
impaired account.
Doubtful This category includes all borrowers with non-performing loan status or an account with any portion of interest and/or principal payment
that has become in arrears for more than ninety (90) days. The borrower is unable or unwilling to service debt over an extended period of time. Future
prospects of orderly debt service is considered doubtful. Existing facts or conditions make collection or liquidation in full highly improbable and thus
substantial loss is probable.
Loss This category represents borrowers whose prospect for re-establishment of creditworthiness and debt service is remote. This category also
applies where the Parent Company will take or has taken title to the assets of the borrower and is preparing a foreclosure and/or liquidation of the
borrowers business. The loans are considered uncollectible or worthless and of such little value.
Due from BSP, due from other banks, and interbank loans receivable are classified as high grade since these are deposited in/or transacted with reputable
banks which has low probability of insolvency. Quoted bonds and equities which are either issued by the Philippine government or reputable companies
are classified as High grade. Unquoted bonds and equities are classified as standard grade based on the reputation of the counterparty and lack of
marketability as compared with quoted investments.
The table below shows the aging analysis of gross past due but not impaired loans and receivables that the Group and Parent Company held as of
December 31, 2009 and December 31, 2008. Under PFRS 7, a financial asset is past due when a counterparty has failed to make a payment when
contractually due.
Consolidated
December 31, 2009
Corporate lending
Consumer lending
Others
Total
December 31, 2008

Corporate lending
Consumer lending
Others
Total
Less than
30 days
31 to 60 days
61 to 90 days
More than
91 days
Total
P15,432,848
28,770,790
2,921
P44,206,559
P9,589,040
8,657,305
8,942
P18,255,287
P
27,550,484
P27,550,484
P1,112,284,465
267,999,441
212,540
P1,380,496,446
P1,137,306,353
332,978,020
224,403
P1,470,508,776
Less than
30 days
31 to 60 days
61 to 90 days
More than
91 days
Total
P24,201,161
6,061,493
P30,262,654
P154,170,175
37,727,171
3,771,672
P195,669,018
P83,014,709
54,082,957
1,805,298
P138,902,964
P106,041,666
573,866,804
2,703,664
P682,612,134
P367,427,711
671,738,425
8,280,634
P1,047,446,770
Parent Company
December 31, 2009
Corporate lending
Consumer lending
Others
Total
Less than
30 days
31 to 60 days
61 to 90 days
More than
91 days
Total
P15,432,848
25,971,886
2,921
P41,407,655
P9,589,040
8,657,305
8,942
P18,255,287
P
27,550,484
P27,550,484
P1,112,284,465
267,527,636
212,540
P1,380,024,641
P1,137,306,353
329,707,311
224,403
P1,467,238,067
CHINA BANK
85
2009 ANNUAL REPORT
December 31, 2008

Corporate lending
Consumer lending
Others
Total
Less than
30 days
31 to 60 days
61 to 90 days
More than
91 days
Total
P24,201,161
6,061,493
P30,262,654
P154,170,175
37,727,171
3,771,672
P195,669,018
P83,014,709
54,082,957
1,805,298
P138,902,964
P106,041,666
573,866,804
2,703,664
P682,612,134
P367,427,711
671,738,425
8,280,634
P1,047,446,770
The aggregate fair value of collaterals held by the Group pertaining to the aggregate amount of gross past due but not impaired loans and receivables as
of December 31, 2009 and 2008 amounted to P2.26 billion and P1.68 billion, respectively.
The aggregate fair value of collaterals held by the Parent Company pertaining to the aggregate amount of gross past due but not impaired loans and
receivables as of December 31, 2009 and 2008 amounted to P2.26 billion and P1.68 billion, respectively.
See discussions under the Collateral and other credit enhancements section for the details of types of collateral held.
See Note 14 for more detailed information with respect to the allowance for impairment and credit losses on loans and receivables.
The following table presents the carrying amount of financial assets of the Group and Parent Company as of December 31, 2009 and 2008 that would
have been considered past due or impaired if not renegotiated:
Consolidated
2009
Loans and advances to customers:
Corporate lending
Consumer lending
Total renegotiated financial assets
P1,417,591,826
P1,417,591,826
2008
P1,588,689,391
P1,588,689,391
Parent Company
2009
P1,417,591,826
P1,417,591,826
2008
P1,588,689,391
P1,588,689,391
Impairment assessment
The main considerations for the loan impairment assessment include whether any payments of principal or interest are overdue by more than 90 days or
there are any known difficulties in the cash flows of counterparties, credit rating downgrades, or infringement of the original terms of the contract. The
Group addresses impairment assessment in two areas: individually assessed allowances and collectively assessed allowances.
Individually assessed allowances
The Group determines the allowances appropriate for each individually significant loan or advance on an individual basis. Items considered when
determining allowance amounts include the sustainability of the counterpartys business plan, its ability to improve performance once a financial difficulty
has arisen, projected receipts and the expected dividend payout should bankruptcy ensue, the availability of other financial support and the realizable value
of collateral, and the timing of the expected cash flows. The impairment losses are evaluated at each reporting date, unless unforeseen circumstances
require more careful attention.
Collectively assessed allowances
Allowances are assessed collectively for losses on loans and advances that are not individually significant (including residential mortgages and unsecured
consumer lending) and for individually significant loans and advances where there is not yet objective evidence of individual impairment. Allowances are
evaluated on each reporting date with each portfolio receiving a separate review.
The collective assessment takes account of impairment that is likely to be present in the portfolio even though there is not yet objective evidence of the
impairment in an individual assessment. Impairment losses are estimated by taking into consideration the following information: historical losses on the
portfolio, current economic conditions, the approximate delay between the time a loss is likely to have been incurred and the time it will be identified as
requiring an individually assessed impairment allowance, and expected receipts and recoveries once impaired. Management is responsible for deciding
the length of this period which can extend for as long as one year. The impairment allowance is then reviewed by credit management to ensure alignment
with the Groups overall policy.
Financial guarantees and letters of credit are assessed and provision made in a similar manner as for loans.
Market Risk
Market risk is the risk of loss that may result from changes in the price of a financial product. The value of a financial product may change as a result
of changes in interest rates, foreign exchange rates, commodity prices, equity prices and other market changes. The Parent Companys market risk
originates from its holdings of foreign exchange instruments and debt securities.
The RMU of the Parent Company is responsible for assisting the RMC with its responsibility for identifying, measuring, managing and controlling
market risk. Market risk management is implemented under the Value-at-Risk (VaR) method, a procedure for estimating the probability of portfolio
losses exceeding some specified proportion based on a statistical analysis of historical market price trends, correlations and volatilities. Specifically, the
Bank uses the Parametric/Variance-Covariance VaR measurement. VaR estimates the potential decline in the value of a portfolio, under normal market
conditions, for a given confidence level over a specified holding period.
CHINA BANK
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2009 ANNUAL REPORT
Objectives and limitations of the VaR Methodology

The Parent Company uses simulation models to assess possible changes in the market value of the trading portfolio based on historical data from the past
260 trading days. The VaR models are designed to measure market risk in a normal market environment. The models assume that any changes occurring
in the risk factors affecting the normal market environment will follow a normal distribution. The distribution is calculated by using exponentially weighted
historical data. The use of VaR has limitations because it is based on historical correlations and volatilities in market prices and assumes that future price
movements will follow a statistical distribution. Due to the fact that VaR relies heavily on historical data to provide information and may not clearly predict
the future changes and modifications of the risk factors, the probability of large market moves may be underestimated if changes in risk factors fail to align
with the normal distribution assumption. VaR may also be under- or over-estimated due to the assumptions placed on risk factors and the relationship
between such factors for specific instruments. Even though positions may change throughout the day, the VaR only represents the risk of the portfolios
at the close of each business day, and it does not account for any losses that may occur beyond the 99% confidence level.
In practice the actual trading results will differ from the VaR calculation and, in particular, the calculation does not provide a meaningful indication of profits
and losses in stressed market conditions. To determine the reliability of the VaR models, actual outcomes are monitored regularly to test the validity of
the assumptions and the parameters used in the VaR calculation. Market risk positions are also subject to regular stress tests to ensure that the Bank
would withstand an extreme market event.
VaR assumptions
The VaR that the Parent Company measures is an estimate, using a confidence level of 99%, of the potential loss that is not expected to be exceeded if
the current market risk positions were to be held unchanged for one day. The use of a 99% confidence level means that, within a one day horizon, losses
exceeding the VaR figure should occur, on average, not more than once every hundred days.
In July 2005, the Parent Company commenced the bankwide computation of its VaR in certain trading activities, using a 99% confidence level and a
10-day holding period for interest rate risk and a 99% confidence level and 1-day holding period for foreign exchange risk and equity risk. This means
that, statistically, the Parent Companys losses on interest rate risks arising from trading operations will exceed the VaR figure on 1 fortnightly period
(with no change in the portfolio during the holding period) out of 100 fortnightly periods. The validity of the VaR model is verified through back testing,
which examines how frequently actual daily losses exceeds daily VaR. The Parent Company measures and monitors the VaR and profit and loss on a
daily basis.
Since VaR is an integral part of the Parent Companys market risk management, VaR limits have been established for all trading operations and exposures
are reviewed daily against the limits by management.
A summary of the VaR position of the trading portfolio of the Parent Company is as follows:
Interest Rate
2009
31 December
Average daily
Highest
Lowest
P24.68
34.51
52.83
15.79
2008
31 December
Average daily
Highest
Lowest
P20.77
17.51
31.12
6.57
Foreign
Exchange
(In Millions)
P16.12
11.80
27.92
3.51
P7.99
9.60
23.09
4.49
Equity
Total
P2.60
2.79
3.06
2.39
P43.40
49.10
83.81
21.69
P2.97
3.12
3.42
2.89
P31.73
30.23
57.63
13.95
In 2009, there were 5 times in the year that daily equity losses were greater than the equity VaR (average loss of those instances was P3.56 million, with
an average VaR of P2.82 million).
In 2008, there were 18 times in the year that daily losses were greater than the VaR (average loss of those instances was P10.14 million, with an average
VaR of P5.08 million). However, 16 out of 18 occurred during stressed market conditions in September and October, as a result of the global financial
crisis.
a.
Interest Rate Risk

The Groups interest rate risk originates from its holdings of interest rate sensitive assets and interest rate sensitive liabilities. The Parent Company
follows prudent policies in managing its exposures to interest rate fluctuations, and constantly monitors its assets and liabilities.
As of December 31, 2009 and 2008, 90.45% and 91.84% of the Groups total loan portfolio, respectively, comprised of floating rate loans which are
repriced periodically by reference to the transfer pool rate which reflects the Groups internal cost of funds. In keeping with banking industry practice,
the Group aims to achieve stability and lengthen the term structure of its deposit base, while providing adequate liquidity to cover transactional
banking requirements of customers.
CHINA BANK
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2009 ANNUAL REPORT
Interest is paid on demand accounts, which constituted 20.28% and 17.10% of total deposits as of December 31, 2009 and 2008, respectively.
Interest is paid on savings accounts and time deposits accounts which constitute 51.02% and 28.71%, respectively, of total deposits as of December 31,
2009, and 56.62%and 26.28%, respectively, as of December 31, 2008.
Savings account interest rates are set by reference to prevailing market rates, while interest rates on time deposits and special savings accounts are
usually priced by reference to prevailing rates of short-term government bonds and other money market instruments or, in the case of foreign currency
deposits, inter-bank deposit rates and other benchmark deposit rates in international money markets with similar maturities.
The Group is likewise exposed to fair value interest rate risk due to its holdings of fixed rate government bonds as part of its AFS and FVPL portfolios.
Market values of these investments are sensitive to fluctuations in interest rates.
The following table provides for the average effective interest rates by period of repricing (or by period of maturity if there is no repricing) of the Group
and Parent Company as of December 31, 2009 and 2008:
Consolidated
Less than
3 months
2009
3 months
to 1 year
Greater
than 1 year
Less than 3
months
2008
3 months
to 1 year
Greater
than 1 year
Peso
Assets
Due from BSP
Due from banks
Investment securities*
3.13%
3.86%
3.80%
6.67%
4.36%
7.65%
5.68%
7.73%
2.80%
5.37%
5.53%
9.13%
5.82%
9.18%
6.58%
7.37%
Liabilities
Deposit liabilities
Bills payable
2.21%
3.50%
7.25%
3.60%
8.02%
6.24%
4.82%
4.79%
5.11%
6.46%
8.18%
6.46%
USD
Assets
2.47%
6.25%
7.05%
5.52%
2.83%
6.47%
5.73%
6.91%
4.51%
8.16%
7.47%
Liabilities
Deposit liabilities
Bills payable
1.56%
2.04%
2.79%
3.35%
* Consisting of financial assets at FVPL, AFS financial assets and HTM financial assets.
Parent Company
Less than
3 months
2009
3 months
to 1 year
Greater
than 1 year
Less than 3
months
2008
3 months
to 1 year
Greater
than 1 year
Peso
Assets
Due from BSP
Due from banks
3.12%
3.89%
3.80%
6.66%
4.44%
7.63%
5.69%
7.69%
2.80%
5.37%
5.53%
9.13%
5.82%
9.09%
6.58%
7.30%
Liabilities
Deposit liabilities
Bills payable
2.20%
3.50%
7.25%
3.60%
8.02%
6.24%
4.82%
4.79%
5.11%
6.46%
8.18%
6.46%
USD
Assets
2.47%
6.25%
7.05%
5.52%
2.83%
6.47%
5.73%
6.91%
4.51%
8.16%
7.47%
Liabilities
Deposit liabilities
Bills payable
1.56%
2.04%
2.79%
3.35%
* Consisting of financial assets at FVPL, AFS financial assets and HTM financial assets.
CHINA BANK
88
2009 ANNUAL REPORT
The method by which the Group measures the sensitivity of its assets and liabilities to interest rate fluctuations is by way of asset-liability gap analysis.
This analysis provides the Group with a measure of the Groups susceptibility to changes in interest rates. The repricing gap is calculated by first
distributing the assets and liabilities contained in the Groups balance sheet into tenor buckets according to the time remaining to the next repricing date
(or the time remaining to maturity if there is no repricing), and then obtaining the difference between the total of the repricing (interest rate sensitive)
assets and repricing (interest rate sensitive) liabilities.
A gap is considered negative when the amount of interest rate sensitive liabilities exceeds the amount of interest rate sensitive assets. A gap is
considered positive when the amount of interest rate sensitive assets exceeds the amount of interest rate sensitive liabilities.
Accordingly, during a period of rising interest rates, a bank with a positive gap would be in a position to invest in higher yielding assets earlier than it would
need to refinance its interest rate sensitive liabilities. During a period of falling interest rates, a bank with a positive gap would tend to see its interest
rate sensitive assets repricing earlier than its interest rate sensitive liabilities, which may restrain the growth of its net income or result in a decline in net
interest income.
The following table sets forth the repricing gap position of the Group and Parent Company as of December 31, 2009 and 2008 (in millions):
Financial Assets
Total loans and receivables
Total investments
Placements with other banks
Deposit liabilities
Bills payable
Repricing gap
Consolidated
2009
>3 to 6
>6 to 12
Months
Months
Up to 1
Month
>1 to 3
Months
>12
Months
Total
P68,286
30,375
1
98,662
P19,369
8,664
3
28,036
P8,984
2,035
4
11,023
P6,351
2,244
10
8,605
P15,456
59,529
524
75,509
P118,446
72,472
30,375
542
221,835
158,576
2,122
160,698
(P62,036)
25,078
732
25,810
P2,226
3,227
225
3,452
P7,571
1,004
753
1,757
P6,848
5,405
1,954
7,359
P68,150
193,290
5,786
199,076
P22,759
Up to 1
Month
>1 to 3
Months
>3 to 6
Months
>6 to 12
Months
>12
Months
Total
P65,077
50
22,346
15
87,488
P20,267
5,782
26,049
P6,372
1,378
4
7,754
P3,550
7
3,557
P23,608
48,855
680
73,143
P118,874
56,065
22,346
706
197,991
134,222
636
134,858
(P47,370)
31,771
1,681
33,452
(P7,403)
1,399
125
1,524
P6,230
1,075
273
1,348
P2,209
5,312
1,190
6,502
P66,641
173,779
3,905
177,684
P20,307
Parent Company
2009
>3 to 6
>6 to 12
Months
Months
>12
Months
Total
2008
Financial Assets
Total investments
Deposit liabilities
Bills payable
Repricing gap
Financial Assets
Total investments
Deposit liabilities
Bills payable
Repricing gap
Up to 1
Month
>1 to 3
Months
P68,235
30,164
2
98,401
P19,303
8,618
2
27,923
P8,825
1,989
5
10,819
P6,326
2,192
10
8,528
P14,864
58,840
296
74,000
P117,553
71,639
30,164
315
219,671
157,206
2,122
159,328
(P60,927)
24,942
732
25,674
P2,249
3,227
225
3,452
P7,367
1,004
753
1,757
P6,771
5,421
1,952
7,373
P66,627
191,800
5,784
197,584
P22,087
CHINA BANK
89
2009 ANNUAL REPORT
2008
Financial Assets
Total investments
Deposit liabilities
Bills payable
Repricing gap
Up to 1
Month
>1 to 3
Months
>3 to 6
Months
>6 to 12
Months
>12
Months
Total
P64,967
50
21,833
15
86,865
P20,157
5,782
25,939
P6,262
1,378
4
7,644
P3,440
7
3,447
P22,963
48,288
242
71,493
P117,789
55,498
21,833
268
195,388
132,339
636
132,975
(P46,110)
31,771
1,681
33,452
(P7,513)
1,399
125
1,524
P6,120
1,075
273
1,348
P2,099
5,312
1,190
6,502
P64,991
171,896
3,905
175,801
P19,587
The Group also monitors its exposure to fluctuations in interest rates by using scenario analysis to estimate the impact of interest rate movements on its
interest income. This is done by modeling the impact to the Groups interest income and interest expenses of different parallel changes in the interest
rate curve, assuming the parallel change only occurs once and the interest rate curve after the parallel change does not change again for the next twelve
months.
The following table sets forth the estimated change in the Groups and Parent Companys annualized net interest income due to a parallel change in the
interest rate curve as of December 31, 2009 and 2008:
Consolidated
2009
Change in interest rates (in basis points)
100bp rise
50bp rise
50bp fall
(P615,260,898)
(P307,630,449 )
P307,630,449
Change in annualized net interest income

As a percentage of the Groups net income
for the year ended December 31, 2009
(7.62%)
(3.81% )
3.81%
2008
100bp rise
50bp rise
50bp fall
(P472,040,218)
(P236,020,109 )
P236,020,109

(7.24%)
(3.62% )
3.62%
100bp fall
P615,260,898
7.62%
100bp fall
P472,040,218
7.24%
Parent Company
2009
100bp rise
50bp rise
50bp fall
100bp fall
(P605,960,669)
(P302,980,334 )
P302,980,334
P605,960,669

(7.51%)
(3.75% )
3.75%
2008
100bp rise
50bp rise
50bp fall
(P230,498,878 )
P230,498,878
(P460,997,755)

(7.19%)
(3.59% )
3.59%
7.51%
100bp fall
P460,997,755
7.19%
There is no other impact on the Groups and Parent Companys equity other than those already affecting the profit or loss.
After modeling the impact to the Groups interest income and interest expenses of different parallel changes in the interest rate curve, based on the mix of
assets and liabilities of the Group as of December 31, 2009 and 2008, if interest rates decreased by 100 basis points, the Group would expect annualized
net interest income to increase by P615.26 million and P472.04 million, respectively, and correspondingly decrease by the same amount if interest rates
increased by 100 basis points. As of December 31, 2009 and 2008, if interest rates decreased by 100 basis points, the Parent Company would expect
annualized net interest income to increase by P605.96 million and P461.00 million, respectively and correspondingly decrease by the same amount if
interest rates increased by 100 basis points. This scenario analysis is performed for risk management purposes and depends on numerous assumptions.
Actual changes in net interest income are almost certain to vary from the estimates above.
CHINA BANK
90
2009 ANNUAL REPORT
The following table sets forth the estimated change in the Groups and Parent Companys income before tax and equity due to a reasonably possible
change in the market prices of quoted bonds classified under financial assets at FVPL and AFS financial assets, brought about by movement in the interest
rate curve as of December 31, 2009 and 2008:
Change in income before tax

Change in equity
Consolidated
2009
25bp rise
10bp rise
10bp fall
(P29,404,745)
(P11,993,501)
P11,545,633
(411,914,363)
(165,778,478)
166,383,817
25bp fall
P29,448,477
418,540,967

Change in equity
2008
25bp rise
10bp rise
10bp fall
(P10,140,745)
(P4,077,490)
P4,090,764
(254,767,418)
(102,437,237)
103,137,463
25bp fall
P10,281,078
259,201,449

Change in equity
Parent Company
2009
25bp rise
10bp rise
10bp fall
(P29,404,745)
(P11,993,501)
P11,545,633
(408,401,850)
(164,369,701)
164,969,989
25bp fall
P29,448,477
414,996,877

Change in equity
2008
25bp rise
10bp rise
10bp fall
(P10,140,745)
(P4,077,490)
P4,090,764
(253,504,374)
(101,930,656)
102,629,054
25bp fall
P10,281,078
257,926,983
b.
Foreign Currency Risk

The Groups foreign exchange risk originates from its holdings of foreign currency-denominated assets (foreign exchange assets) and foreign
currency-denominated liabilities (foreign exchange liabilities).
Foreign exchange liabilities generally consist of foreign currency-denominated deposits in the Groups FCDU account made in the Philippines or
generated from remittances to the Philippines by persons overseas who retain for their own benefit or for the benefit of a third party, foreign
currency deposit accounts with the Group.
Foreign currency liabilities are generally used to fund the Groups foreign exchange assets which generally consist of foreign currency-denominated
loans and investments in the FCDU. Banks are required by the BSP to match the foreign currency-denominated assets with liabilities held in the
FCDU that are denominated in the same foreign currency. In addition, the BSP requires a 30% liquidity reserve on all foreign currency-denominated
liabilities held in the FCDU.
The Groups policy is to maintain foreign currency exposure within existing regulations, and within acceptable risk limits. The Group believes in
ensuring its foreign currency is at all times within limits prescribed for financial institutions who are engaged in the same types of businesses in
which the Group and its subsidiaries are engaged.
The table below summarizes the Groups and Parent Companys exposure to foreign exchange risk. Included in the table are the Groups and Parent
Companys assets and liabilities at carrying amounts (stated in US Dollars), categorized by currency (in thousands):
Consolidated
USD
Assets
Other assets
$132,039
22,711
429,346
567,038
340,836
24,314
10,038
$1,526,322
2009
Other
Currencies
$6,514
242
3,546
296
202
$10,800
Total
PHP
USD
$138,553
22,953
429,346
570,584
341,132
24,516
10,038
$1,537,122
P6,401,145
1,060,420
19,800,498
26,360,988
15,760,276
1,132,655
473,998
P70,989,980
$80,294
20,606
218,014
576,508
282,197
21,369
27,803
$1,226,791
(Forward)
CHINA BANK
91
2009 ANNUAL REPORT
2008
Other
Currencies
$5,802
3,396
184
525
$9,907
Total
PHP
$86,096 P4,091,261
20,606
979,188
218,014 10,323,492
579,904 27,557,038
282,197 13,409,989
21,553
1,024,243
28,328
1,346,158
$1,236,698 P58,731,369
Consolidated
USD
Liabilities
Deposit liabilities
Accrued interest
and other expenses
Other liabilities
Currency spot
Currency forwards
Net Exposure
2009
Other
Currencies
Total
PHP
USD
2008
Other
Currencies
Total
PHP
$1,128,110
$7,978
$1,136,088
P52,487,280
$809,079
$4,494
$813,573 P38,660,998
3,861
6,097
1,138,068
(11,000)
(414,615)
($37,361)
11
144
8,133
$2,667
3,872
6,241
1,146,201
(11,000)
(414,615)
($34,694)
180,657
288,347
52,956,284
(510,150)
(19,343,830)
(P1,819,834)
3,297
11,976
824,352
21,000
(435,119)
($11,680)
8
399
$4,901
$5,006
3,305
156,383
12,375
588,042
$829,253 39,405,423
21,000
998,570
(435,119) (21,054,248)
($6,674)
(P729,732)
Parent Company
USD
Assets
Other assets
Liabilities
Deposit liabilities
Accrued interest
and other expenses
Other liabilities
Currency spot
Currency forwards
Net Exposure
2009
Other
Currencies
Total
PHP
USD
2008
Other
Currencies
Total
PHP
P3,782,050
979,188
10,292,661
27,557,038
13,409,989
1,023,305
1,346,158
58,390,389
$129,280
22,711
429,346
567,038
340,836
24,313
10,038
1,523,562
$6,514
242
3,546
296
202
10,800
$135,794
22,953
429,346
570,584
341,132
24,515
10,038
1,534,362
P6,273,682
1,060,420
19,800,498
26,360,988
15,760,276
1,132,607
473,998
70,862,469
$ 73,787
20,606
217,365
576,508
282,197
21,350
27,803
1,219,616
$5,802
3,396
184
525
9,907
$79,589
20,606
217,365
579,904
282,197
21,534
28,328
1,229,523
$1,125,390
$7,978
$1,133,368
P52,361,611
$809,079
$4,494
$813,573 P38,660,998
3,858
6,090
1,135,338
(11,000)
(414,615)
($37,391)
11
144
8,133
$2,667
3,869
6,234
1,143,471
(11,000)
(414,615)
($34,724)
180,524
288,015
52,830,150
(510,150)
(19,343,380)
(P1,821,211)
3,297
10,797
823,173
21,000
(435,119)
($17,676)
8
399
4,901
$5,006
3,305
156,383
11,196
532,042
828,074 39,349,423
21,000
998,570
(435,119) (21,054,248)
($12,670) (P1,014,712)
The following table sets forth, for the period indicated, the impact of the range of reasonably possible changes in the US$ exchange rate and other
currencies per Philippine peso on the pre-tax income and equity (in millions).
Change in foreign
exchange rate
Consolidated
Sensitivity of
pretax income
Sensitivity of
equity
2009
USD
Other
USD
Other
2%
1%
(2%)
(1%)
P17
1
(17)
(1)
P421
1
(421)
(1)
2008
USD
Other
USD
Other
2%
1%
(2%)
(1%)
P7
(7)
P213
(213)
Change in foreign
exchange rate
2009
USD
Other
USD
Other
2%
1%
(2%)
(1%)
(Forward)
CHINA BANK
92
2009 ANNUAL REPORT
Parent Company
Sensitivity of
pretax income
P17
1
(17)
(1)
Sensitivity of
equity
P421
1
(421)
(1)
Change in foreign
exchange rate
2008
USD
Other
USD
Other
Parent Company
Sensitivity of
pretax income
2%
1%
(2%)
(1%)
Sensitivity of
equity
P7
(7)
P212
(212)
The impact in equity is due to the effect of FCDUs behaviour to Philippine peso (see Note 2).
c.
Equity Price Risk

Equity price risk is the risk that the fair values of equities decrease as the result of changes in the level of equity indices and the value of individual
stocks. The non-trading equity price risk exposure arises from the Groups investment portfolio.
The effect on the Group and Parent Companys equity (as a result of a change in the fair value of equity instruments held as available-for-sale due to
a reasonably possible change in equity indices, with all other variables held constant, is as follows (in millions):
Consolidated
Change in
equity price
+10%
-10%
+10%
-10%
2009
2008
Effect on
Equity
P10
(3 )
P5
0
Parent Company
Change in
equity price
+10%
-10%
+10%
-10%
2009
2008
Effect on
Equity
P10
(3 )
P5
0
Liquidity Risk and Funding Management

Liquidity risk is generally defined as the current and prospective risk to earnings or capital arising from the Parent Companys inability to meet its
obligations when they become due without incurring unacceptable losses or costs.
The Parent Companys liquidity management involves maintaining funding capacity to accommodate fluctuations in asset and liability levels due to
changes in the Parent Companys business operations or unanticipated events created by customer behavior or capital market conditions. The Parent
Company seeks to ensure liquidity through a combination of active management of liabilities, a liquid asset portfolio composed substantially of deposits
in primary and secondary reserves, and the securing of money market lines and the maintenance of repurchase facilities to address any unexpected
liquidity situations.
Liquidity risk is monitored and controlled primarily by a gap analysis of maturities of relevant assets and liabilities reflected in the maximum cumulative
outflow (MCO) report, as well as an analysis of available liquid assets. Furthermore, an internal liquidity ratio has been set to determine sufficiency of
liquid assets over deposit liabilities.
Liquidity is monitored by the Parent Company on a daily basis and under stressed situations. The table below shows the maturity profile of the Parent
Companys assets and liabilities, based on its internal methodology that manages liquidity based on contractual undiscounted cash flows:
December 31, 2009
Financial Assets
Due from BSP
resale agreement
On demand
Less than
1 year
P5,757
11,554
6,762
11,848
P35,921
4,702
2,149
P6,851
1 to 2 years
2 to 3 years
(In Millions)
P
P
230
6,403
P6,633
(Forward)
CHINA BANK
93
2009 ANNUAL REPORT
3,850
P3,850
3 to 5 years
Total
P5,757
11,554
6,762
9
32,318
P32,327
11,848
4,941
44,720
P85,582
December 31, 2009
Deposit liabilities
Demand
Savings
Time
Bills payable
BSP rediscounting
Government lending program
Managers checks
Other liabilities:
Accounts payable
Other payables
Acceptances payable
Due to PDIC
Due to BSP
Margin deposits
Miscellaneous
Total liabilities
On demand
Less than
1 year
P38,889
27,029
P
70,821
48,156
1,904
3,566
37
433
1,835
339
P65,918
889
194
190
181
38
324
P127,003
On demand
Less than
1 year
P4,049
13,596
4,217
4,020
P25,882
2,058
761
P2,819
2,895
P2,895
P29,398
22,803
P
74,514
36,042
P52,201
1 to 2 years
2 to 3 years
(In Millions)
3 to 5 years
Total
5,000
P38,889
97,850
55,060
132
16
2,035
3,566
2,220
433
1,835
339
P2,036
P16
P7,035
889
194
190
181
38
324
P202,008
1 to 2 years
2 to 3 years
(In Millions)
P
P
3 to 5 years
Total
P4,049
13,596
4,217
646
506
P1,152
10
24,875
P24,885
4,020
2,714
29,037
P57,633
2,937
1,975
5,000
P29,398
97,317
45,954
1,500
299
350
1,950
121
241
2,701
1,500
3,362
350
1,950
960
393
375
165
67
66
612
P117,293
15
P3,073
P2,216
P7,701
960
393
375
165
67
66
627
P182,484
December 31, 2008
Financial Assets
Due from BSP
resale agreement
Deposit liabilities
Demand
Savings
Time
Bills payable
BSP rediscounting
Government lending program
Managers checks
Other liabilities:
Accounts payable
Other payables
Acceptances payable
Due to BSP
Margin deposits
Miscellaneous
Total liabilities
CHINA BANK
94
2009 ANNUAL REPORT
8.
Debt and Equity Securities Classified as Financial Assets

Financial assets at FVPL consist of:
Consolidated
2009
Held-for-trading:
Treasury notes
Government bonds
BSP Treasury bills
P1,208,687,841
1,178,301,993
1,149,294,187
464,211,953
4,000,495,974
701,754,075
238,844,298
P4,941,094,347
Derivative assets (Note 23)

Designated at FVPL
2008
P694,719,900
734,048,148
86,815,307
143,178,355
1,658,761,710
399,606,493
656,039,950
P2,714,408,153
Parent Company
2009
P1,208,687,841
1,178,301,993
1,149,294,187
464,211,953
4,000,495,974
701,754,075
238,844,298
P4,941,094,347
2008
P694,719,900
734,048,148
86,815,307
143,178,355
1,658,761,710
399,606,493
656,039,950
P2,714,408,153
As of December 31, 2009 and 2008, HFT securities include net unrealized gain of P134.37 million and net unrealized loss of P86.26 million, respectively.
Designated at FVPL pertains to the Parent Companys investments in Interest-Linked Structured Products and Dual Curve Notes which will mature in
2011. In 2009, the Parent Company sold the Dual Curve Notes at P472.90 million for a realized gain of P33.79 million. As of December 31, 2009 and 2008,
the carrying amount of designated at FVPL investments includes unrealized gain of P32.28 million and unrealized loss of P68.52 million, respectively.
Both realized and unrealized gains and losses on HFT and designated at FVPL investments are included under Trading and securities gain (loss) in the
statements of income (see Note 19).
AFS financial assets consist of:
Consolidated
2009
Quoted:
Government bonds
Private bonds
Equities
Unquoted:
Equities - net
Total
2008
Parent Company
2009
2008
P40,013,927,214
532,481,391
173,898,977
40,720,307,582
P24,559,170,445
218,123,508
24,777,293,953
P39,289,800,654
532,481,391
173,898,977
39,996,181,022
P24,018,084,775
218,123,508
24,236,208,283
4,604,553,996
100,019,655
45,064,667
4,749,638,318
P45,469,945,900
4,387,572,145
356,720,445
82,472,764
4,826,765,354
P29,604,059,307
4,604,553,996
100,019,655
19,412,705
4,723,986,356
P44,720,167,378
4,387,572,145
349,679,601
63,869,846
4,801,121,592
P29,037,329,875
In a meeting held last August 6, 2008, the BOD authorized the Parent Company to invest in Credit Linked Notes (CLNs). Thereafter, the Parent Company
invested US$100,000,000, in five separate agreements of US$20,000,000 each, in CLNs. The CLNs are linked to the performance of a specific ROP
bond and the underlying bond collateral. In the event of default of the specific ROP bond or bond collateral, the investment will unwind and the Parent
Company will receive the deliverable obligation as defined under the contract. If no credit event occurs, the Parent Company will receive the maturity
value of the CLNs, which is the face amount. The CLNs bear floating interest based on LIBOR plus an agreed spread, payable semi-annually, and will
mature in 2013.
The embedded credit derivatives on the above CLNs have been bifurcated (see Note 23) and the host contracts were classified under AFS financial
assets.
As of December 31, 2009 and 2008, AFS financial assets include unrealized gain of P427.50 million and unrealized loss of P1.21 billion, respectively, for
the Group and unrealized gain of P 424.16 million and unrealized loss of P1.20 billion, respectively, for the Parent Company. The unrealized gains or losses
are recognized under other comprehensive income. No impairment loss was recognized in 2009 and 2008.
CHINA BANK
95
2009 ANNUAL REPORT
The movements in net unrealized gains (losses) on AFS financial assets follow:
Consolidated
2009
2008
(P1,208,049,246) P1,050,485,665
1,227,255,493
(2,550,088,544)
408,289,472
291,553,633
1,635,544,965
(2,258,534,911)
P427,495,719 (P1,208,049,246)
Balance at beginning of year

Unrealized losses for the year
Gains taken to profit or loss (Note 19)
Balance at end of year
Parent Company
2009
2008
(P1,201,540,145) P1,034,786,067
1,217,407,080
(2,527,879,845)
408,289,472
291,553,633
1,625,696,552
(2,236,326,212)
P424,156,407 (P1,201,540,145)
Unquoted equity securities of the Group pertain to stocks of private corporations. These are classified as AFS financial assets and are carried at cost since
fair value cannot be reliably estimated due to lack of reliable estimates of future cash flows and discount rates necessary to calculate the fair value. There
is currently no market for these investments and the Group intends to hold them for the long term.
HTM financial assets consist of the following:
Consolidated
Parent Company
2009
2008
2009
2008
P21,222,450,023 P23,044,015,146 P21,222,450,023 P23,044,015,146
456,707,000
382,041,792
373,527,000
382,041,792
21,679,157,023
23,426,056,938
21,595,977,023 23,426,056,938
382,227,780
320,689,719
382,227,780
320,689,719
P22,061,384,803 P23,746,746,657 P21,978,204,803 P23,746,746,657
Government bonds
Private bonds
Unamortized premium - net
The aggregate market value of the Groups HTM financial assets amounted to P24.80 billion and P24.02 billion as of December 31, 2009 and 2008,
respectively, and the aggregate market value of the Parent Companys HTM financial assets amounted to P24.71 billion and P24.02 billion as of December
31, 2009 and 2008, respectively.
Reclassification of Financial Assets
As allowed by the amendments to PAS 39 and PFRS 7, the Parent Company identified assets for which it had a clear change of intent to hold the
investments to maturity rather than to exit or trade these investments in the foreseeable future and reclassified those investments from AFS financial
asset to HTM financial asset.
On December 3, 2008, the Parent Companys BOD confirmed and ratified the resolution by the Audit and Risk Management Committees on November
19, 2008, to approve the reclassification of certain financial assets from AFS financial asset to HTM financial asset in the financial and regulatory reporting
books of the Parent Company effective October 2, 2008. These securities were reclassified based on the criteria and rules set forth in BSP Circulars 626
and 628 as well as those laid out in SEC Memorandum Circular No. 10, Series of 2008 on Amendments to PAS 39 and PFRS 7.
As of October 2, 2008, the total carrying value of AFS financial assets reclassified to HTM securities amounted to P9.04 billion with unrealized losses of
P47.44 million deferred under Net unrealized gains (losses) on AFS financial assets under other comprehensive income.
HTM financial asset reclassified from AFS financial asset with total face amount of P1.5 billion had matured in November 2008.
The HTM securities reclassified from AFS financial assets have the following balances as of December 31, 2009 and 2008:
2009
Government bonds
Private bonds
2008
Government bonds
Private bonds
Carrying
value
(In Thousands)
Fair
Value
Unamortized
Net unrealized
loss deferred in
equity
Amortization
Face value
Original cost
P6,429,569
371,448
P6,801,017
P7,049,473
371,430
P7,420,903
P6,795,385
351,764
P7,147,149
P7,196,507
371,281
P7,567,788
(P221)
(19,668)
(P19,889)
P25,524
2,601
P28,125
P6,617,714
382,061
P6,999,775
P7,936,790
382,042
P8,318,832
P7,057,107
359,652
P7,416,759
P7,553,735
305,649
P7,859,384
P(21,157)
(22,391)
(P43,548)
P4,783
514
P5,297
Had these securities not been reclassified to HTM financial assets, additional mark-to-market gains and losses that would have been charged against
statement of comprehensive income amounted to P713.04 gain and P189.24 million loss in 2009 and 2008.
CHINA BANK
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2009 ANNUAL REPORT
Effective interest rates on the reclassified securities range from 3.29% to 8.06%. The Parent Company expects to recover 100% of the principal and
interest due on the reclassified investments totaling P9.05 billion and P9.93 billion, as of December 31, 2009 and 2008, respectively. No impairment loss
was recognized in 2009 and 2008, respectively.
9.
Loans and Receivables

This account consists of:
Consolidated
2009
Loans and discounts
Corporate lending
Consumer lending
Others
Unearned discounts
Customers liabilities under letters of credit or trust receipts
Bills purchased
Allowance for impairment and credit losses (Note 14)
P94,511,891,149
14,950,474,241
158,736,056
109,621,101,446
(1,037,367,820)
108,583,733,626
6,499,574,787
2,324,908,991
117,408,217,404
(7,036,925,847)
P110,371,291,557
Parent Company
2009
2008
P93,766,026,251
15,373,521,405
1,119,109,887
110,258,657,543
(1,101,788,421)
109,156,869,122
6,579,517,831
2,036,125,864
117,772,512,817
(6,933,278,573)
P110,839,234,244
P93,922,309,777
14,673,565,807
132,359,729
108,728,235,313
(1,017,800,431)
107,710,434,882
6,499,574,787
2,324,908,991
116,534,918,660
(7,019,995,706)
P109,514,922,954
2008
P92,860,670,619
15,195,771,922
1,116,949,866
109,173,392,407
(1,061,774,307)
108,111,618,100
6,579,517,831
2,036,125,864
116,727,261,795
(6,925,433,125)
P109,801,828,670
The Groups and Parent Companys loans and discounts under corporate lending include unquoted debt securities amounting to P18.13 billion and P15.27
billion as of December 31, 2009, respectively and P16.38 billion and P13.41 billion as of December 31, 2008, respectively.
BSP Reporting
Information on the amounts of secured and unsecured loans and receivables (gross of unearned discounts and allowance for impairment and credit
losses) of the Group and Parent Company are as follows:
Consolidated
Loans secured by:

Real estate
Deposit hold out
Chattel mortgage
Shares of stock of
other banks
Others
Unsecured loans
2009
Amounts
Parent Company
2008
Amounts
2009
Amounts
2008
Amounts
P22,250,081,594
7,441,806,851
1,836,668,381
18.79
6.28
1.55
P21,445,620,276
6,256,984,634
1,541,622,069
18.04
5.27
1.30
P21,467,299,523
7,441,806,851
1,744,423,222
18.26
6.33
1.48
P20,447,653,468
6,246,638,546
1,536,840,165
17.36
5.30
1.30
1,599,530,300
23,868,823,033
56,996,910,159
61,448,675,065
P118,445,585,224
1.35
20.15
48.12
51.88
100.00
1,002,465,000
29,875,415,154
60,122,107,133
58,752,194,105
P118,874,301,238
0.84
25.13
50.58
49.42
100.00
1,599,530,300
23,868,323,033
56,121,382,929
61,431,336,162
P117,552,719,091
1.36
20.31
47.74
52.26
100.00
1,002,465,000
29,841,153,201
59,074,750,380
58,714,285,722
P117,789,036,102
.85
25.34
50.15
49.85
100.00
Loans and receivables of the Group amounting to P3.57 billion and P1.50 billion as of December 31, 2009 and 2008, respectively, are pledged to secure
certain bills payable to the BSP under the Parent Companys rediscounting privileges (see Note 16).
Information on the concentration of credit as to industry of the Group and Parent Company follows:
Consolidated
2009
Amounts
P25,723,596,196
18,918,618,406
14,896,968,930
13,431,161,777
11,703,614,214
11,129,678,290
10,635,081,815
1,170,690,998
53,713,843
10,782,460,755
P118,445,585,224
Real estate, renting and business services

Agriculture
Manufacturing
Transportation, storage and communication
Wholesale and retail trade
Financial intermediaries
Electricity, gas and water
Construction
Mining and quarrying
Others
CHINA BANK
97
%
21.72
15.97
12.58
11.34
9.88
9.40
8.98
0.99
0.04
9.10
100.00
2009 ANNUAL REPORT
2008
Amounts
P20,889,759,760
17,412,731,290
18,109,700,241
4,164,628,262
16,928,142,925
15,494,124,683
6,200,340,277
9,556,586,664
301,159,091
9,817,128,045
P118,874,301,238
%
17.57
14.65
15.24
3.50
14.24
13.03
5.22
8.04
0.25
8.26
100.00
Parent Company
2009
Real estate, renting and business services
Agriculture
Manufacturing
Transportation, storage and communication
Wholesale and retail trade
Financial intermediaries
Electricity, gas and water
Construction
Mining and quarrying
Others
P25,214,433,180
18,800,057,102
14,889,046,831
13,423,075,270
11,677,057,892
11,129,678,290
10,635,081,815
1,143,430,465
53,713,843
10,587,144,403
P117,552,719,091
%
21.45
15.99
12.67
11.42
9.93
9.47
9.05
0.97
0.05
9.00
100.00
2008
Amounts
P20,848,659,760
17,148,016,481
17,750,896,698
4,164,628,262
16,845,096,206
15,494,124,683
6,149,826,936
9,383,086,677
301,159,091
9,703,541,308
P117,789,036,102
%
17.70
14.56
15.07
3.54
14.30
13.15
5.22
7.97
0.26
8.23
100.00
The BSP considers that loan concentration exists when total loan exposure to a particular industry or economic sector exceeds 30% of total loan portfolio.
As of December 31, 2009 and 2008, the Group does not have credit concentration in any particular industry.
BSP Circular No. 351 allows banks to exclude from nonperforming classification receivables classified as Loss in the latest examination of the BSP
which are fully covered by allowance for credit losses, provided that interest on said receivables shall not be accrued and that such receivables shall be
deducted from the total receivable portfolio for purposes of computing non-performing loans. As of December 31, 2009 and 2008, nonperforming loans
(NPLs) of the Group and Parent Company not fully covered by allowance for impairment and credit losses follow:
Total NPLs
Less NPLs fully covered by allowance
for impairment and credit losses
Consolidated
2009
2008
P6,124,439,202
P7,592,454,990
Parent Company
2009
2008
P6,054,786,533 P7,516,381,355
1,454,143,903
P4,670,295,299
1,453,611,496
P4,601,175,037
2,071,148,345
P5,521,306,645
2,070,615,937
P5,445,765,418
As of December 31, 2009 and 2008, secured and unsecured NPLs of the Group and Parent Company follow:
Consolidated
2009
2008
P4,392,299,173
P5,035,882,478
1,732,140,029
2,556,572,512
P6,124,439,202
P7,592,454,990
Secured
Unsecured
Parent Company
2009
2008
P4,322,646,504 P4,961,741,850
1,732,140,029
2,554,639,505
P6,054,786,533 P7,516,381,355
The estimated aggregate fair value of collaterals held by the Parent Company pertaining to the NPLs as of December 31, 2009 and 2008 amounted to
P6.07 billion and P6.81 billion, respectively.
10. Equity Investments

The Parent Companys investments consist of:
Effective Percentages
of Ownership
2009
2008
Subsidiaries:
China Bank Savings, Inc. (formerly The Manila Banking Corporation)
95.06%
100.00%
CBC Properties and Computer Center, Inc. (CBC-PCCI)
100.00%
China Bank Insurance Brokers, Inc.
100.00%
1,176,766,030
Associate:
Manulife China Bank Life Assurance Corporation (MCB Life)
5.00%
2009
2008
94.33%
100.00%
100.00%
100.00%
1,162,996,449
P1,122,827,030
50,000,000
2,439,000
1,500,000
P1,109,057,449
50,000,000
2,439,000
1,500,000
5.00%
13,745,839
P1,190,511,869
11,245,838
P1,174,242,287
The foregoing balances represent the acquisition cost of the Parent Companys subsidiaries and associate.
China Bank Savings, Inc.
As discussed in Note 4, the Parent Company acquired 91.82% of ChinaBank Savings equity interest for P1.73 billion. Subsequently, on November 21,
2007, the BOD approved the transfer of certain assets and liabilities (including certain branches) of ChinaBank Savings to the Parent Company. As the
economic value of goodwill arising from the ChinaBank Savings acquisition can be attributed to the branches transferred, such goodwill was transferred to
CHINA BANK
98
2009 ANNUAL REPORT
the books of the Parent Company. The branch licenses pertaining to the branches transferred were also transferred to the Parent Company. The transfers
resulted to a reduction of the investment account of the Parent Company by P0.66 billion as of December 31, 2007.
CBC Forex
On May 5, 2009 the BOD approved to dissolve the operations of the Company by shortening its corporate life until December 31, 2009.
MCB Life
On August 2, 2006, the BOD approved the joint project proposal of the Parent Company with Manufacturers Life Insurance Company (Manulife). Under
the proposal, the Parent Company will invest in a life insurance company owned by Manulife, and such company will be offering innovative insurance and
financial products for health, wealth and education through the Parent Companys branches nationwide. The life insurance company was incorporated as
The Pramerica Life Insurance Company Inc. in 1998 but the name was changed to Manulife China Bank Life Assurance Corporation on March 23, 2007.
The Parent Company acquired 5% interest of MCB Life on August 8, 2007. This investment is accounted for as an investment in associate by virtue of
the Bancassurance Alliance Agreement which provides the Parent Company to be represented in MCB Lifes BOD and exercises significant influence
over the latter.
The Parent Company contributed P2.5 million in 2009 and 2008 to maintain the minimum 5% ownership required by the BSP in order for MCB Life to be
allowed to continue distributing its insurance products through the Parent Companys branches.
The equity investments in the consolidated financial statements pertain to the Parent Companys investment in MCB Life and CBC-PCCIs investment in
Urban Shelters amounting to P3.23 million (accounted for by CBC-PCCI as an investment in associate). The equity in net earnings of these investments
is not significant.
11. Bank Premises, Furniture, Fixtures and Equipment

The composition of and movements in this account follow:
Consolidated
Cost
Additions
Disposals
Reclassifications
Accumulated Depreciation
and Amortization
Disposals
Reclassifications
Net book value at end of year
Land
Furniture,
Fixtures and
Equipment
Leasehold
Buildings
Building
Under
Improvements
Construction
2009
Total
P2,748,526,894
40,289,151
19,370,213
2,808,186,258
P3,077,256,425
505,642,967
(61,014,757)
(26,323,362)
3,495,561,273
P944,081,242
33,484,902
125,279,642
1,102,845,786
P402,441,336
132,717,518
535,158,854
P790,000
(790,000)
P7,173,095,897
712,134,538
(61,014,757)
117,536,493
7,941,752,171
P2,808,186,258
2,172,834,172
445,715,943
(33,383,238)
(43,166,195)
2,542,000,682
P953,560,591
330,513,198
39,825,321
(4,407,087)
365,931,432
P736,914,354
167,734,088
61,079,107
16,037,770
244,850,965
P290,307,889
2,671,081,458
546,620,371
(33,383,238)
(31,535,512)
3,152,783,079
P4,788,969,092
Land
Furniture,
Fixtures and
Equipment
Leasehold
Buildings
Building
Under
Improvements
Construction
2008
Total
P2,730,092,334
18,434,560
2,748,526,894
P2,690,636,501
472,622,203
(58,978,705)
(27,023,574)
3,077,256,425
P903,939,933
46,153,752
(6,012,443)
944,081,242
P272,439,507
110,702,908
19,298,921
402,441,336
P1,205,600
2,951,608
(3,367,208)
790,000
P6,598,313,875
650,865,031
(58,978,705)
(17,104,304)
7,173,095,897
P2,748,526,894
1,921,099,034
294,676,949
(44,709,467)
1,767,656
2,172,834,172
P904,422,253
300,055,103
30,530,391
(72,296)
330,513,198
P613,568,044
124,411,938
38,943,706
4,378,444
167,734,088
P234,707,248
P790,000
2,345,566,075
364,151,046
(44,709,467)
6,073,804
2,671,081,458
P4,502,014,439
Consolidated
Cost
Additions
Disposals
Reclassifications
and Amortization
Disposals
Reclassifications
CHINA BANK
99
2009 ANNUAL REPORT
Parent Company
Cost
Additions
Disposals
Reclassification
and Amortization
Disposals
Reclassifications
Land
Furniture,
Fixtures and
Equipment
Leasehold
Buildings
Building
Under
Improvements
Construction
2009
Total
P2,257,999,080
40,289,151
19,370,213
2,317,658,444
P3,055,804,187
496,171,055
(60,196,576)
(113,963,303)
3,377,815,363
P756,821,425
25,465,056
128,916,019
911,202,500
P402,441,336
113,569,988
516,011,324
P790,000
(790,000)
P6,473,856,028
675,495,250
(60,196,576)
33,532,929
7,122,687,631
P2,317,658,444
2,154,108,332
436,443,923
(32,701,633)
(97,169,760)
2,460,680,862
P917,134,501
265,601,768
33,677,447
(4,800,896)
294,478,319
P616,724,181
167,734,088
60,562,737
16,037,770
244,334,595
P271,676,729
2,587,444,188
530,684,107
(32,701,633)
(85,932,886)
2,999,493,776
P4,123,193,855
Land
Furniture,
Fixtures and
Equipment
Leasehold
Buildings
Building
Under
Improvements
Construction
2008
Total
P2,239,564,520
18,434,560
2,257,999,080
P2,670,860,943
470,945,523
(58,799,587)
(27,202,692)
3,055,804,187
P712,728,361
46,153,752
(2,060,688)
756,821,425
P272,439,507
110,702,908
19,298,921
402,441,336
P1,205,600
2,951,608
(3,367,208)
790,000
P5,896,798,931
649,188,351
(58,799,587)
(13,331,667)
6,473,856,028
P2,257,999,080
1,903,955,037
292,905,176
(44,340,417)
1,588,536
2,154,108,332
P901,695,855
241,250,389
24,423,674
(72,295)
265,601,768
P491,219,657
124,411,938
38,943,706
4,378,444
167,734,088
P234,707,248
P790,000
2,269,617,364
356,272,556
(44,340,417)
5,894,685
2,587,444,188
P3,886,411,840
Parent Company
Cost
Additions
Disposals
Reclassifications
and Amortization
Disposals
Reclassification
The Group adopted the deemed cost model as of January 1, 2004 and considered the carrying value of the land determined under its previous accounting
method (revaluation method) as the deemed cost of the asset as of January 1, 2005. Accordingly, the carrying value of the revaluation increment on the
land as of January 1, 2004 is retained in the balance sheet and will be reversed to surplus upon the disposal of the asset. The land shall be carried at its
deemed cost less accumulated impairment loss, if any.
In 2009 and 2008, depreciation and amortization amounting to P546.62 million and P364.15 million, respectively, for the Group and P530.68 million and
P356.27 million, respectively, for the Parent Company are included in the statements of income.
As of December 31, 2009 and 2008, the carrying value of fully depreciated property and equipment still in use amounted to P0.07 million and P0.28 million,
respectively, for the Group and P0.07 million and P0.06 million, respectively, for the Parent Company.
12. Investment Properties

The composition of and movements in the Groups and the Parent Companys investment properties follow:
Cost
Additions
Disposals
Reclassification
Land
Consolidated
Buildings and
Improvements
2009
Total
P4,249,835,713
503,779,731
(423,720,574)
(54,477,847)
4,275,417,023
P1,113,050,891
255,347,937
(129,897,490)
(16,275,175)
1,222,226,163
P5,362,886,604
759,127,668
(553,618,064)
(70,753,022)
5,497,643,186
(Forward)
CHINA BANK
100
2009 ANNUAL REPORT
Accumulated Depreciation and Amortization

Disposals
Reclassification
Accumulated Impairment Loss (Note 14)
Additions
Reclassification
Land
Consolidated
Buildings and
Improvements
2009
Total
469,221,386
121,350,351
(74,786,353)
(10,103,916)
505,681,468
469,221,386
121,350,351
(74,786,353 )
(10,103,916 )
505,681,468
P720,321,350
239,801,676
108,654,041
1,068,777,067
P3,206,639,956
Land
Cost
Additions
Disposals
Disposals
Reversal
P4,646,179,084
229,593,689
(625,937,060)
4,249,835,713
794,052,880
(73,731,530)
720,321,350
P3,529,514,363
P164,794,166
P885,115,516
239,801,676
(108,654,041)
56,140,125
1,124,917,192
P660,404,570 P3,867,044,526
Consolidated
Buildings and
Improvements
P1,071,021,320 P5,717,200,404
162,553,149
392,146,838
(120,523,578)
(746,460,638)
1,113,050,891
5,362,886,604
403,680,488
106,836,640
(41,295,742)
469,221,386
P4,199,153,440
442,065,127
(398,722,078)
(54,477,846)
4,188,018,643
720,321,350
239,801,676
108,654,041
1,068,777,067
P3,119,241,576
CHINA BANK
101
2009 ANNUAL REPORT
403,680,488
106,836,640
(41,295,742)
469,221,386
172,405,567
966,458,447
(7,611,401)
(81,342,931)
164,794,166
885,115,516
P479,035,339 P4,008,549,702
Parent Company
Buildings and
Land
Improvements
Cost
Additions
Disposals
Reclassifications
Disposals
Reclassifications
Additions
Reclassifications
2008
Total
2009
Total
P1,042,626,958 P5,241,780,398
249,501,969
691,567,096
(146,702,730)
(545,424,808 )
(12,235,013)
(66,712,859 )
1,133,191,184
5,321,209,827
468,329,954
114,748,671
(74,786,353)
(10,256,000)
498,036,272
468,329,954
114,748,671
(74,786,353 )
(10,256,000 )
498,036,272
164,794,166
885,115,516
239,801,676
(108,654,041)
56,140,125
1,124,917,192
P579,014,787 P3,698,256,363
Cost
Additions
Disposals
Reclassifications
Disposals
Reversals
Land
Parent Company
Buildings and
Improvements
2008
Total
P4,622,634,438
202,456,062
(588,453,875)
(37,483,185)
4,199,153,440
P1,019,273,967
143,876,569
(154,370,530)
33,846,952
1,042,626,958
P5,641,908,405
346,332,631
(742,824,405)
(3,636,233)
5,241,780,398
403,680,488
105,945,208
(41,295,742)
468,329,954
403,680,488
105,945,208
(41,295,742)
468,329,954
P794,052,880
(73,731,530)
720,321,350
P3,478,832,090
P172,405,567
(7,611,401)
164,794,166
P409,502,838
P966,458,447
(81,342,931)
885,115,516
P3,888,334,928
The Groups investment properties consist entirely of real estate properties acquired in settlement of loans and receivables (previously classified as ROPA).
The difference between the fair value of the asset upon foreclosure and the carrying value of the loan is recognized under Gain on asset foreclosure and
dacion transactions in the statements of income.
The aggregate fair value of the investment properties as of December 31, 2009 and 2008 amounted to P6.62 billion and P7.33 billion, respectively, for the
Group and P6.35 billion and P7.08 billion, respectively, for the Parent Company. The fair values of the Groups and Parent Companys investment properties
have been determined by the appraisal method by independent external and in-house appraisers on the basis of recent sales of similar properties in the
same areas as the investment properties and taking into account the economic conditions prevailing at the time the valuations were made.
In 2009 and 2008, depreciation and amortization amounting to P121.35 million and P106.84 million, respectively, for the Group and P114.75 million and
P105.95 million, respectively, for the Parent Company, are included in the statements of income.
Details of the rental income and direct operating expenses on the investment properties of the Group follow:
Rent income on investment properties

Direct operating expenses from investment properties generating rent income
Direct operating expenses from investment properties not generating rent income
2009
P18,132,880
2,790,751
38,426,761
2008
P15,093,784
4,238,329
40,003,614
2007
P16,315,045
2,309,703
34,703,544
13. Branch Licenses, Goodwill and Other Assets

Branch Licenses and Goodwill
Branch licenses and goodwill arise from the Parent Companys acquisition of China Bank Savings Inc. (see Note 4).
Movement in Branch licenses account is as follows:
Consolidated
2009
2008
P477,600,000
P477,600,000
P477,600,000
P477,600,000

Adjustment/reclassification/reversal
Parent
2009
2008
P450,501,931
P438,532,320
11,969,611
P450,501,931
P450,501,931
Goodwill represents the excess of the acquisition cost over the fair value of the identifiable assets and liabilities of ChinaBank Savings. Such goodwill can
be attributed to factors such as increase in geographical presence and customer base due to branches acquired. As such, the Parent Companys Branch
Banking Group (BBG) has been identified as the cash generating unit (CGU) for impairment testing of the goodwill. The BBG has also been identified as
the CGU for impairment testing of the Branch licenses.
The recoverable amount of the CGU has been determined based on a value-in-use calculation using cash flow projections from financial budgets approved
by senior management covering a five-year period. The discount rate applied to cash flow projections is 11.63% in 2009 and 11.14% in 2008 and cash
flows beyond the five year-period are extrapolated using a steady growth rate of 3.00% in 2009 and 4.00% in 2008, which does not exceed the long-term
average growth rate for the industry.
CHINA BANK
102
2009 ANNUAL REPORT
The calculation of the value-in-use of the CGU is most sensitive to the following assumptions:
Interest margin
Discount rates
Market share during the budget period
Steady growth rate used to extrapolate cash flows beyond the budget period
Local inflation rates
With regard to the assessment of value-in-use of the CGU, management believes that no reasonably possible change in any of the above key assumptions
would cause the carrying value of the goodwill and branch licenses to materially exceed its recoverable amount.
Other Assets
Accounts receivable
Returned checks and other cash items in process of collection (RCOCI)
Creditable withholding taxes
Net plan assets (Note 22)
Escrow deposits
Due from affiliate (Note 27)
Miscellaneous
Allowance for impairment and credit losses (Note 14)
Consolidated
2009
2008
P694,165,763
P1,048,423,314
541,592,162
706,127,205
360,104,596
232,216,269
340,686,891
87,360,125
247,767,035
250,266,865
194,583,829
375,008,484
623,140,656
676,387,772
3,002,040,932
3,375,790,034
(386,384,317)
(340,913,585)
P2,615,656,615
P3,034,876,449
Parent Company
2009
2008
P634,403,872
P917,403,676
314,860,013
268,269,488
360,104,596
232,216,269
218,569,289
78,442,085
246,452,025
250,156,825
194,583,829
375,008,484
108,231,847
76,429,392
597,963,647
665,825,198
2,675,169,118
2,863,751,417
(370,361,631)
(338,777,160)
P2,304,807,487 P2,524,974,257
Accounts receivable pertains mainly to advances to officers and employees. These are short-term noninterest bearing receivables.
Miscellaneous assets consist mainly of prepaid expenses, loan release in process, documentary stamps, stationary and supplies unissued, inter-office
float items, deferred charges, security deposits and deposits for various services, and down payment for purchase of real properties.
The following tables present the reconciliation of the movement of the allowance for impairment and credit losses for Other assets:
At January 1, 2009
Provisions during the year
Transfers/others
At December 31, 2009
At January 1, 2008
Accounts charged off
Transfers/others
Accounts
receivable
P135,799,629
1,384,805
(1,262,258)
P135,922,176
P134,051,625
(1,574,999)
3,323,003
P135,799,629
Consolidated
Sales contract
receivable
Miscellaneous
P28,132,690
P176,981,266
49,884,788
90,201
(4,626,804)
P28,222,891
P222,239,250
P25,576,886
P132,541,606
2,555,804
44,439,660
P28,132,690
P176,981,266
At January 1, 2009
Transfers/others
At January 1, 2008
Transfers/others
Accounts
receivable
P135,799,629
1,384,805
(1,262,258)
P135,922,176
P134,051,625
(1,574,999)
3,323,003
P135,799,629
Parent Company
Sales contract
receivable
Miscellaneous
P28,132,690
P174,844,841
49,884,788
90,201
(18,513,065)
P28,222,891
P206,216,564
P25,576,886
P131,262,369
(1,574,999)
2,555,804
43,582,472
P28,132,690
P174,844,841
CHINA BANK
103
2009 ANNUAL REPORT
Total
P340,913,585
51,269,593
(5,798,861)
P386,384,317
P292,170,117
(1,574,999)
50,318,467
P340,913,585
Total
P338,777,160
51,269,593
(19,685,122)
P370,361,631
P290,890,880
49,461,279
P338,777,160
14. Allowance for Impairment and Credit Losses

Changes in the allowance for impairment and credit losses are as follows:
Consolidated
2009
Balances at beginning of year:
Other assets
Provisions charged to operations
Accounts charged off and others
Balances at end of year:
Other assets
Parent Company
2009
2008
2008
P6,933,278,573
885,115,516
499,872,643
340,913,585
8,659,180,317
792,384,146
(453,259,252)
339,124,894
P6,853,348,737
966,458,447
499,872,643
292,170,117
8,611,849,944
306,709,527
(259,379,154)
47,330,373
P6,925,433,125
885,115,516
394,137,099
338,777,160
8,543,462,900
792,384,146
(476,320,206)
316,063,940
P6,835,863,969
966,458,447
394,668,098
290,890,880
8,487,881,394
306,709,527
(362,291,033)
(55,581,506)
7,036,925,847
1,124,917,192
499,872,643
386,384,317
P9,048,099,999
6,933,278,573
885,115,516
499,872,643
340,913,585
P8,659,180,317
7,019,995,706
1,124,917,192
394,137,099
370,361,631
P8,909,411,628
6,925,433,125
885,115,516
394,137,099
338,777,160
P8,543,462,900
At the current level of allowance for impairment and credit losses, management believes that the Group has sufficient allowance to cover any losses that
may be incurred from the non-collection or non-realization of its loans and receivables and other risk assets.
A reconciliation of the allowance for credit losses for receivables from customers and AFS financial assets is as follows:
Consolidated
2009
At January 1, 2009
Transfers/others
Individual impairment
Collective impairment

Corporate
Consumer
Lending
Lending
Others
P6,029,847,578
P443,790,821
P459,640,174
462,739,127
32,557,348
6,016,402
(350,451,947)
355,486,026
(21,251,690)
(381,447,992)
P6,497,620,784
P455,096,479
P84,208,584
P4,631,705,937
P276,058,867
P84,208,584
1,865,914,847
179,037,612
P6,497,620,784
P455,096,479
P84,208,584
Total
P6,933,278,573
501,312,877
(350,451,947)
(47,213,656)
P7,036,925,847
P4,991,973,388
2,044,952,459
P7,036,925,847
AFS Financial
Assets
Unquoted
Securities
P499,872,643
P499,872,643
P499,872,643
P499,872,643
Total
P6,853,348,737
304,084,483
(33,395,713)
(190,758,934)
P6,933,278,573
P5,408,886,079
1,524,392,494
P6,933,278,573
AFS Financial
Assets
Unquoted
Securities
P499,872,643
P499,872,643
P499,872,643
P499,872,643
Consolidated
2008
At January 1, 2008
Transfers/others

Corporate
Consumer
Lending
Lending
P6,082,567,440
P327,995,623
201,687,832
84,811,110
(31,907,874)
(1,487,839)
(222,499,820)
32,471,927
P6,029,847,578
P443,790,821
P
P5,408,886,079
620,961,499
443,790,821
P6,029,847,578
P443,790,821
CHINA BANK
104
Others
P442,785,674
17,585,541
(731,041)
P459,640,174
P
459,640,174
P459,640,174
2009 ANNUAL REPORT
Parent Company
2009
At January 1, 2009
Transfers/others

Corporate
Consumer
Lending
Lending
Others
P6,022,638,396
P443,346,218
P459,448,511
462,739,127
32,557,348
6,016,402
(350,451,947)
346,401,333
(21,251,690)
(381,447,992)
P6,481,326,909
P454,651,876
P84,016,921
P4,631,705,937
P276,058,867
P84,016,921
1,849,620,972
178,593,009
P6,481,326,909
P454,651,876
P84,016,921
Total
P6,925,433,125
501,312,877
(350,451,947)
(56,298,349)
P7,019,995,706
P4,991,781,725
2,028,213,981
P7,019,995,706
AFS Financial
Assets
Unquoted
Securities
P394,137,099
P394,137,099
P394,137,099
P394,137,099
Total
P6,835,863,969
304,084,483
(33,395,713)
(181,119,614)
P6,925,433,125
P5,402,724,851
1,522,708,274
P6,925,433,125
AFS Financial
Assets
Unquoted
Securities
P394,668,098
(530,999)
P394,137,099
P394,137,099
P394,137,099
Parent Company
2008
At January 1, 2008
Transfers/others

Corporate
Consumer
Lending
Lending
P6,066,683,786
P327,317,213
201,687,832
84,811,110
(31,907,874)
(1,487,839)
(213,825,348)
32,705,734
P6,022,638,396
P443,346,218
P5,402,724,851
P
619,913,545
443,346,218
P6,022,638,396
P443,346,218
Others
P441,862,970
17,585,541
P459,448,511
P
459,448,511
P459,448,511
The gross amount of the Groups loans and receivables that were individually determined to be impaired as of December 31, 2009 and 2008 amounted to
P7.98 billion and P6.37 billion, respectively and P7.87 billion and P6.23 billion, respectively, for the Parent Company.
Accretion of individually impaired loans and receivables of the Parent Company included as part of interest income amounted to P55.01 million and
P140.49 million for the years ended December 31, 2009 and 2008, respectively.
15. Deposit Liabilities

As of December 31, 2009 and 2008, 62.84% and 65.71%, respectively, of the total deposit liabilities of the Group are subject to periodic interest repricing.
The remaining deposit liabilities earn annual fixed interest rates ranging from 0.375% to 8.25% in 2009 and from 0.50% to 8.25% in 2008.
On April 2, 2008, the Parent Companys BOD authorized the issuance of Long Term Negotiable Certificates of Deposit (LTNCDs) to expand the Banks
asset base. On August 8, 2008, the Parent Company issued at par 5-year LTNCDs with aggregate principal amount of P5.0 billion maturing on August 9,
2013. The LTNCDs are included under the Time deposit liabilities account. The LTNCDs bear a coupon rate of 8.25% per annum, payable quarterly at
the end of each 3-month period. The statutory reserve for LTNCD is 2%. It is not subject to liquidity reserve based on the MORBs under the section on
Deposit Substitutes.
Under existing BSP regulations, non-FCDU deposit liabilities of the Group are subject to liquidity reserve equivalent to 11% and statutory reserve
equivalent to 8%. As of December 31, 2009 and 2008, the Group is in compliance with such regulations.
Available reserves of the Group per latest report submitted to the BSP are as follows:
2009
P5,932,819,170
5,121,868,112
14,852,348,075
P25,907,035,357

Due from BSP
CHINA BANK
105
2009 ANNUAL REPORT
2008
P3,848,916,820
6,901,286,859
14,263,414,579
P25,013,618,258
16. Bills Payable

The Groups and the Parent Companys bills payable consist of:
Consolidated
2009
2008
P2,219,764,540
P2,405,564,148
3,565,907,112
1,499,898,899
P5,785,671,652
P3,905,463,047
Government lending programs

BSP - rediscounting (Note 9)
Parent Company
2009
2008
P2,219,764,540
P2,405,564,148
3,565,907,112
1,499,898,899
P5,785,671,652
P3,905,463,047
Details of the government lending programs follow:

Average
term
7 years
7 years
15 years
Counterparty
Development Bank of the Philippines
Land Bank of the Philippines
Social Security Services
Rates
5.50% to 9.70%
5.89% to 6.66%
12%
2009
P1,810,637,748
407,976,925
1,149,867
P2,219,764,540
2008
P2,364,139,096
39,799,183
1,625,869
P2,405,564,148
17. Accrued Interest and Other Expenses

Consolidated
2009
2008
P1,336,032,581
P592,418,477
527,085,581
1,357,384,949
P1,863,118,162 P1,949,803,426
Accrued other expenses payable

Accrued interest payable
Parent Company
2009
2008
P1,309,510,201
P570,759,431
525,214,465
1,349,667,583
P1,834,724,666
P1,920,427,014
The accrued other expenses payable as of December 31, 2009 and 2008 includes the Groups accrual for various operating expenses such as vacation
leave credits of employees, utilities and rental expenses.
18. Other Liabilities

Consolidated
2009
2008
P976,336,346
P960,287,200
194,583,829
375,008,484
189,854,859
164,664,381
181,036,256
144,774,324
37,660,145
65,944,844
16,861
67,402,844
346,457,637
482,822,406
P1,925,945,933
P2,260,904,483
Accounts payable
Other payables
Acceptances payable
Due to PDIC*
Margin deposits
Due to BSP
Miscellaneous
Parent Company
2009
2008
P889,325,606
P926,571,830
194,583,829
375,008,484
189,854,859
164,664,381
181,036,256
144,774,324
37,660,145
65,944,844
16,861
67,402,844
323,591,540
434,492,847
P1,816,069,096
P2,178,859,554
*Philippine Deposit Insurance Corporation (PDIC)

Other payables pertain to the Parent Companys payable to the former shareholders of ChinaBank Savings in relation to the acquisition in September 2007
(see Note 4). The Parent Company paid P180.42 million and P185.00 million in 2009 and 2008, respectively.
Miscellaneous liabilities mainly include capitalized interest on restructured loans and cash letters of credits.
CHINA BANK
106
2009 ANNUAL REPORT
19. Net Trading Income (Loss)

Financial assets at FVPL:

Held-for-trading
Designated at FVPL
Embedded credit derivatives
(Note 23)
2009
Consolidated
2008
2007
2009
Parent Company
2008
2007
P318,588,974
65,283,823
(P86,260,132)
(40,974,746)
(P41,657,418)
80,251,316
P318,588,974
65,283,823
(P86,260,132)
(40,974,746)
(P41,657,418)
80,251,316
396,293,395
408,289,472
P1,188,455,664
(265,268,834)
291,553,633
(P100,950,079)
580,333,139
P618,927,037
396,293,395
408,289,472
P1,188,455,664
(265,268,834)
291,553,633
(P100,950,079)
579,490,944
P618,084,842
20. Maturity Analysis of Assets and Liabilities

The following tables present both the Groups and Parent Companys assets and liabilities as of December 31, 2009 and 2008 analyzed according to when
they are expected to be recovered or settled within one year and beyond one year from the balance sheets date:
Consolidated
2009
Financial assets
Due from BSP
resale agreements
AFS financial assets - gross
Loans and receivables - gross
Other assets - gross:
Accounts receivable
RCOCI
Miscellaneous
Nonfinancial assets
Bank premises, furniture,
fixtures and equipment
Investment properties - gross
Deferred tax assets
Equity investments
Other assets gross
Net plan assets
CWT
Branch License
Goodwill
Less:
Allowances for impairment and
Unearned interest and discounts
2008
Less than
twelve months
Over
twelve months
Total
Less than
twelve months
Over
twelve months
Total
P5,795,456,440
11,621,324,385
6,770,243,850
P5,795,456,440
11,621,324,385
6,770,243,850
P4,075,518,568
13,708,932,849
4,236,588,224
P4,075,518,568
13,708,932,849
4,236,588,224
11,983,000,000
4,702,250,049
1,929,702,164
3,138,549,663
56,774,529,179
2,118,893,166
238,844,298
44,040,116,379
18,922,835,140
61,671,056,045
11,983,000,000
4,941,094,347
45,969,818,543
22,061,384,803
118,445,585,224
2,118,893,166
4,400,000,000
1,898,421,893
2,591,042,671
2,219,043,956
48,462,195,556
2,048,826,889
815,986,260
27,512,889,279
21,527,702,701
70,412,105,682
4,400,000,000
2,714,408,153
30,103,931,950
23,746,746,657
118,874,301,238
2,048,826,889
694,165,763
541,592,162
360,104,596
817,724,486
107,247,535,903
124,872,851,862
694,165,763
541,592,162
360,104,596
817,724,486
232,120,387,768
1,048,423,314
370,900,047
232,216,269
1,051,396,256
86,343,506,492
335,227,158
120,603,911,080
1,048,423,314
706,127,205
232,216,269
1,051,396,256
206,947,417,572
4,788,969,092
4,991,961,718
913,889,002
16,980,869
4,788,969,092
4,991,961,718
913,889,002
16,980,869
20,516,001
4,502,014,439
4,893,665,218
891,860,455
14,480,869
4,502,014,439
4,893,665,218
912,376,456
14,480,869
340,686,891
340,686,891
247,767,035
477,600,000
222,841,201
11,660,008,917
247,767,035
340,686,891
477,600,000
222,841,201
12,000,695,805
87,360,125
107,876,126
250,266,865
477,600,000
222,841,201
11,252,729,047
250,266,865
87,360,125
477,600,000
222,841,201
11,360,605,173
9,048,099,999
9,048,099,999
1,037,367,820
1,037,367,820
10,085,467,819
10,085,467,819
P107,588,222,794 P126,447,392,960 P234,035,615,754
CHINA BANK
107
8,659,180,317
8,659,180,317
1,101,788,421
1,101,788,421
9,760,968,738
9,760,968,738
P86,451,382,618 P122,095,671,389 P208,547,054,007
2009 ANNUAL REPORT
Consolidated
2009
Less than
twelve months
Deposit Liabilities
Bills payable
Managers checks
other expenses
Other liabilities:
Accounts payable
Other payables
Acceptances payable
Due to PDIC
Margin deposits
Due to BSP
Miscellaneous
Nonfinancial liabilities
Accrued income tax payable
P183,296,718,869
3,601,397,707
453,821,513
2008
Over
twelve months
Total
Less than
twelve months
P9,993,320,377 P193,290,039,246 P161,092,199,683

2,184,273,945
5,785,671,652
1,719,514,970
453,821,513
350,047,881
1,863,118,162
338,810,138
1,863,118,162
338,810,138
1,949,803,426
392,753,694
976,336,346
194,583,829
189,854,859
181,036,256
37,660,145
16,861
346,457,637
191,479,812,322
976,336,346
194,583,829
189,854,859
181,036,256
37,660,145
16,861
346,457,637
203,657,406,644
960,287,200
375,008,484
164,664,381
144,774,324
65,944,844
67,402,844
467,447,168
167,749,848,899
9,713,366
P191,489,525,688
12,177,594,322
9,713,366
32,137,748
P12,177,594,322 P203,667,120,010 P167,781,986,647
Over
twelve months
Total
P12,687,056,407 P173,779,256,090
2,185,948,077
3,905,463,047
350,047,881
15,375,238
14,888,379,722
1,949,803,426
392,753,694
960,287,200
375,008,484
164,664,381
144,774,324
65,944,844
67,402,844
482,822,406
182,638,228,621
32,137,748
P14,888,379,722 P182,670,366,369
Parent Company
2009
Financial assets
Due from BSP
securities purchased
under resale agreements
AFS financial assets gross
Loans and receivables gross
Other assets gross:
Accounts receivable
RCOCI
Miscellaneous
Nonfinancial assets
Bank premises, furniture,
fixtures and equipment
Investment properties gross
Deferred tax assets
Equity investments
Other assets gross
Net plan assets
CWT
Branch License
Goodwill
Less:
Allowances for impairment
and credit losses (Note 14)
Unearned interest and discounts
2008
Less than
twelve months
Over
twelve months
Total
Less than
twelve months
Over
twelve months
Total
P5,756,920,133
11,553,930,023
6,761,701,623
P5,756,920,133
11,553,930,023
6,761,701,623
P4,049,328,721
13,595,936,653
4,217,016,260
P4,049,328,721
13,595,936,653
4,217,016,260
11,848,000,000
4,941,094,347
42,840,008,048
18,839,655,140
69,181,482,733
11,848,000,000
4,941,094,347
45,114,304,477
21,978,204,803
117,552,719,091
2,091,795,107
4,020,000,000
1,898,421,893
2,591,042,671
2,219,043,956
47,929,969,619
2,034,127,047
815,986,260
26,840,424,303
21,527,702,701
69,859,066,483
4,020,000,000
2,714,408,153
29,431,466,974
23,746,746,657
117,789,036,102
2,034,127,047
634,403,872
314,860,013
360,104,596
900,779,325
94,006,577,142
135,802,240,268
634,403,872
314,860,013
360,104,596
900,779,325
229,808,817,410
917,403,676
268,269,488
232,216,269
1,117,263,080
85,090,039,333
119,043,179,747
817,403,676
268,269,488
232,216,269
1,117,263,080
204,133,219,080
4,123,193,855
4,823,173,555
907,976,991
1,190,511,869
4,123,193,855
4,823,173,555
907,976,991
1,190,511,869
20,516,001
3,886,411,840
4,773,450,444
887,460,992
1,174,242,287
3,886,411,840
4,773,450,444
907,976,993
1,174,242,287
218,569,289
218,569,289
246,452,025
450,501,931
222,841,201
11,964,651,427
246,452,025
218,569,289
450,501,931
222,841,201
12,183,220,716
78,442,085
98,958,086
250,156,825
450,501,931
222,841,201
11,645,065,514
250,156,825
78,442,085
450,501,931
222,841,201
11,744,023,600
2,274,296,429
3,138,549,663
48,371,236,358
2,091,795,107
8,909,411,628
8,909,411,628
1,017,800,431
1,017,800,431
9,927,212,059
9,927,212,059
P94,225,146,431 P137,839,679,636 P232,064,826,067
CHINA BANK
108
8,543,462,900
8,543,462,900
1,061,774,307
1,061,774,307
9,605,237,207
9,605,237,207
P85,188,997,419 P121,083,008,054 P206,272,005,473
2009 ANNUAL REPORT
Parent Company
2009
Less than
twelve months
Deposit liabilities
Bills payable
Managers checks
other expenses
Other liabilities:
Accounts payable
Other payable
Acceptances payable
Due to PDIC
Margin deposits
Due to BSP
Miscellaneous
Nonfinancial liabilities
Accrued income tax payable
P181,975,653,022
3,601,397,707
433,396,469
2008
Over
twelve months
Less than
twelve months
Total
P9,823,692,349 P191,799,345,371 P159,465,580,210

2,184,273,945
5,785,671,652
1,719,514,970
433,396,469
347,316,610
Over
twelve months
Total
P12,430,076,800 P171,895,657,010
2,185,948,077
3,905,463,047
347,316,610
1,834,724,666
338,810,138
1,834,724,666
338,810,138
1,920,427,014
392,753,694
1,920,427,014
392,753,694
889,325,606
194,583,829
189,854,859
181,036,256
37,660,145
16,861
323,591,540
190,000,051,098
12,007,966,294
889,325,606
194,583,829
189,854,859
181,036,256
37,660,145
16,861
323,591,540
202,008,017,392
926,571,830
375,008,484
164,664,381
926,571,830
375,008,484
164,664,381
65,944,844
67,402,844
579,267,171
166,024,452,052
14,616,024,877
65,944,844
67,402,844
579,267,171
180,640,476,929
9,713,366
P190,009,764,464
9,713,366
29,665,957
P12,007,966,294 P202,017,730,758 P166,054,118,009
29,665,957
P14,616,024,877 P180,670,142,886
21. Equity
The Parent Companys capital stock consists of:
2009
Shares
Common stock - P100 par value
Authorized shares
Issued and outstanding
Stock dividends*
Amount
200,000,000
88,643,469
8,865,303
97,508,772
*The stock dividend declared in 2009 includes fractional shares equivalent to 95,610 shares.
2008
Shares
Amount
200,000,000
P8,864,346,900
886,530,300
P9,750,877,200
77,080,426
11,563,043
88,643,469
P7,708,042,600
1,156,304,300
P8,864,346,900
The Parent Company shares are listed in the Philippine Stock Exchange.
On May 7, 2009, the BOD approved the declaration of 10% stock and P12 per share cash dividends to stockholders of record as of September 17, 2009.
The BSP and SEC approved the dividend declaration on August 27, 2009.
On May 7, 2008, the BOD approved the increase in the Parent Companys authorized capital from P16 billion to P20 billion and the declaration of 15%
stock and P20 per share cash dividends to stockholders of record as of September 25, 2008. The BSP and SEC approved the increase on August 19, 2008
and September 5, 2008, respectively. The dividend declaration was approved by the BSP on July 10, 2008.
On May 2, 2007, the BOD approved the increase in the Parent Companys authorized capital from P10 billion to P16 billion. The BSP and SEC approved
the increase on August 7, 2007 and September 14, 2007, respectively.
On May 3, 2007, the BOD approved the declaration of 25% stock and P25 per share cash dividends to stockholders of record as of October 4, 2007. The
BSP approved the dividend declaration on August 7, 2007.
The computation of surplus available for dividend declaration in accordance with SEC Memorandum Circular No. 11 issued in December 2008 differs to a
certain extent from the computation following BSP guidelines.
In compliance with BSP regulations, 10% of the Parent Companys profit from trust business is appropriated to surplus reserve. This annual appropriation
is required until the surplus reserves for trust business equals 20% of the Parent Companys authorized capital stock.
CHINA BANK
109
2009 ANNUAL REPORT
In the consolidated financial statements, a portion of the Groups surplus corresponding to the net earnings of the subsidiaries and accumulated equity
in net earnings of the associates amounting to P872.47 million and P796.20 million as of December 31, 2009 and 2008, respectively, is not available for
dividend declaration. The accumulated equity in net earnings becomes available for dividends upon receipt of cash dividends from the investees.
Capital Management
The primary objectives of the Groups capital management are to ensure that it complies with externally imposed capital requirements and that it maintains
strong credit ratings and healthy capital ratios in order to support its business and to maximize shareholders value.
The Group manages its capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of its activities.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividend payment to shareholders, return capital to shareholders
or issue capital securities. No changes were made in the objectives, policies and processes as of December 31, 2009 and 2008.
Regulatory Qualifying Capital
Under existing BSP regulations, the determination of the Parent Companys compliance with regulatory requirements and ratios is based on the amount
of the Parent Companys unimpaired capital (regulatory capital) as reported to the BSP. This is determined on the basis of regulatory accounting policies
which differ from PFRS in some respects.
In addition, the risk-based capital ratio of a bank, expressed as a percentage of qualifying capital to risk-weighted assets, should not be less than 10.00%
for both solo basis (head office and branches) and consolidated basis (Parent Company and subsidiaries engaged in financial allied undertakings but
excluding insurance companies). Qualifying capital and risk-weighted assets are computed based on BSP regulations. Risk-weighted assets consist of
total assets less cash on hand, due from BSP, loans covered by hold-out on or assignment of deposits, loans or acceptances under letters of credit to the
extent covered by margin deposits and other non-risk items determined by the Monetary Board (MB) of the BSP.
On August 4, 2006, the BSP, under BSP Circular No. 538, issued the prescribed guidelines implementing the revised risk-based capital adequacy framework
for the Philippine banking system to conform to Basel II capital adequacy framework. The new BSP guidelines took effect on July 1, 2007. Thereafter,
banks were required to compute their CAR using these guidelines. As of December 31, 2009 and 2008, the Groups CAR under BSP Circular No. 538 is
12.8% and 13.49%, respectively.
The CAR of the Group as reported to the BSP as of December 31, 2009 and December 31, 2008 are shown in the table below.
Consolidated
2009
Tier 1 capital
Tier 2 capital
Gross qualifying capital
Less required deductions
Total qualifying capital
Risk weighted assets
Tier 1 capital ratio
Total capital ratio
P25,252.9
1,926.3
27,179.2
56.6
P27,122.6
P211,877.9
11.92%
12.8%
Parent Company
2008
2009
2008
(Amounts in Million Pesos)
P22,481.1
P24,512.7
P21,847.9
1,586.0
1,901.0
1,557.9
24,067.1
26,413.7
23,405.8
51.2
722.0
684.4
P24,015.9
P25,691.7
P22,721.4
P178,070.6
P208,551.1
P174,212.5
12.62%
11.75%
12.54%
13.49%
12.32%
13.04%
The regulatory qualifying capital of the Parent Company consists of Tier 1 (core) capital, which comprises paid-up common stock, hybrid tier 1 capital
securities, surplus including current year profit, surplus reserves and minority interest less required deductions such as unsecured credit accommodations
to DOSRI, deferred income tax, and goodwill. Certain adjustments were made to the accounts and reserves of the Parent Company which were
determined based on PFRS in order to conform to BSPs requirements and guidelines in computing capital adequacy. The other component of regulatory
capital is Tier 2 (supplementary) capital, which includes unsecured subordinated debt and general loan loss provision.
The Group and its individually regulated operations have complied with all externally imposed capital requirements throughout the period.
The increase in the banks regulatory capital for the year 2009 and 2008 is mainly due to current year profits. The increase in risk- weighted assets is
attributed to both the growth in loans and receivables as well as the implementation of BSP Circular No. 538, which raised the amount of foreign-currency
denominated exposures to the National Government and BSP subject to risk-weighting from 1/3 in 2007 to 2/3 effective January 2008 and full amount
from January 1, 2009.
22. Retirement Plan

The Group has separate funded noncontributory defined benefit retirement plans covering substantially all its officers and regular employees. Under these
retirement plans, all covered officers and employees are entitled to cash benefits after satisfying certain age and service requirements. The latest actuarial
valuation studies of the retirement plans were made as of December 31, 2009.
CHINA BANK
110
2009 ANNUAL REPORT
The Groups annual contribution to the retirement plan consists of a payment covering the current service cost, amortization of the unfunded actuarial
accrued liability and interest on such unfunded actuarial liability.
As of January 1, 2009 and 2008, the principal actuarial assumptions used in determining the retirement liability for the Groups and Parent Companys
retirement plan are shown below:
Discount rate
Expected rate of return on assets
Future salary increases
2009
15%
6%
6%
2008
10%
6%
8%
2009
P1,399,342,715
92,304,700
209,901,400
(125,622,500)
348,102,785
P1,924,029,100
2008
P1,723,577,930
135,923,400
174,994,900
(144,579,162)
(490,574,353)
P1,399,342,715
2009
P2,319,127,637
139,147,700
138,510,000
(125,622,500)
(72,727,537)
P2,398,435,300
2008
P2,590,712,100
155,442,700
153,846,347
(144,579,162)
(436,294,348)
P2,319,127,637
2009
P1,924,029,100
2,398,435,300
474,406,200
(227,954,175)
P246,452,025
2008
P1,399,342,715
2,319,127,637
919,784,922
(669,628,097)
P250,156,825
2009
(P669,628,097)
2008
(P632,313,692)
348,102,785
72,727,537
20,843,600
(P227,954,175)
(490,574,353)
436,294,348
16,965,600
(P669,628,097)
The movements in the present value of defined benefit obligation of the Parent Company follow:

Current service cost
Interest cost
Benefits paid
Actuarial losses (gains) on obligation
The movements in the fair value of plan assets of the Parent Company follow:

Expected return
Contribution paid by employer
Benefits paid
Actuarial losses on plan assets
The amounts recognized in the balance sheet of the Parent Company (included under Other assets) follow:
Present value of defined benefit obligation

Fair value of plan assets
Unrecognized actuarial gains
Net plan assets
Movements in accumulated unrecognized actuarial gains of the Parent Company follow:

Actuarial losses (gains) on the present value of the defined benefit obligation
Actuarial losses on plan assets
Actuarial gains recognized during the year
The overall expected rate of return on plan assets is determined based on the market prices prevailing on that date applicable to the period over which the
obligation is to be settled. The amounts included in Compensation and fringe benefits of the Parent Company in the statements of income follow:
2009
P92,304,700
209,901,400
(139,147,700)
(20,843,600)
P142,214,800
Current service cost

Interest cost
Expected return on plan assets
Net actuarial gains recognized during the year
Net pension expense
CHINA BANK
111
2009 ANNUAL REPORT
2008
P135,923,400
174,994,900
(155,442,700)
(16,965,600)
P138,510,000
Actual return amounted to P66.42 million in 2009 and P280.85 million in 2008.
The Parent Company expects to contribute P6.19 million to its defined benefit pension plan in 2010.
In 2009 and 2008, the major categories of plan assets as a percentage of the fair value of total plan assets are as follows:
Debt instruments
Equity instruments
Other assets
2009
42%
31%
27%
100%
2008
45%
34%
21%
100%
2007
P1,723.58
2,590.71
867.13
310.09
35.01
2006
P2,095.46
2,150.18
54.72
291.01
19.06
Information on the Parent Companys retirement plan as of December 31, 2009, 2008 and 2007 follows (in millions):
2009
P1,924.03
2,398.44
474.41
(72.73)
(348.10)
Present value of defined benefit obligation

Fair value of plan assets
Funded status
Experience adjustment arising on plan assets
Experience adjustment arising on plan liabilities
2008
P1,399.34
2,319.13
919.79
(436.29)
490.57
23. Derivative Financial Instruments

Occasionally, the Parent Company enters into forward exchange contracts as an accommodation to its clients. These derivatives are not designated as
accounting hedges. The aggregate notional amount of the outstanding buy US dollar currency forwards as of December 31, 2009 and 2008 amounted to
US$237.13 million and US$30.72 million, respectively, while the sell US dollar forward contracts amounted to US$651.75 million and US$465.83 million,
respectively. Weighted average buy US dollar forward rates as of December 31, 2009 and 2008 are P48.45 and P46.75, respectively, while the weighted
average sell US dollar forward rates are P47.31 and P48.28, respectively.
As of December 31, 2009 and 2008, the mark-to-market gains (asset) or losses (liability) on the outstanding currency forwards and the embedded credit
derivatives bifurcated from the CLNs discussed in Note 8 are as follow:
2009
Derivative
Derivative
Asset
Liability
P570,729,514
P338,810,138
131,024,561
P701,754,075
P338,810,138
Currency forward
Embedded credit derivatives
2008
Derivative
Derivative
Asset
Liability
P399,606,493
P127,484,860
265,268,834
P399,606,493
P392,753,694
Fair Value Changes on Derivatives

The net movements in fair value changes of derivative instruments are as follows:
2009
P6,852,799
967,269,470
(611,178,332)
P362,943,937

Fair value changes during the year
Settled transactions
2008
P317,697,936
20,403,500
(331,248,637)
P6,852,799
The net changes in fair value of the derivatives are presented in the statements of income under the following accounts:
2009
P570,976,075
396,293,395
P967,269,470
Foreign exchange gain

Trading and securities gains*
* Net changes in fair value related to Embedded credit derivatives
CHINA BANK
112
2009 ANNUAL REPORT
2008
P285,672,334
(265,268,834)
P20,403,500
2007
(P184,027,939)
(P184,027,939)
24. Lease Contracts

The lease contracts are for periods ranging from 1 to 25 years from the dates of contracts and are renewable under certain terms and conditions.
Various lease contracts include escalation clauses, most of which bear an annual rent increase of 10%.
Annual rentals of the Parent Company on these lease contracts included in Miscellaneous expense in the statements of income amounted to P170.68
million in 2009, P135.40 million in 2008 and P196.6 million in 2007.
Future minimum rentals payable of the Group and Parent Company under non-cancelable operating leases follow:
Consolidated
2009
2008
P160,997,355
P137,828,862
456,671,170
371,373,865
129,728,022
78,306,119
P747,396,547
P587,508,846
Within one year

After one year but not more than five years
After more than five years
Parent Company
2009
2008
P154,538,692
P131,370,199
427,358,126
342,060,821
100,911,795
78,306,119
P682,808,613
P551,737,139
25. Income and Other Taxes

Under Philippine tax laws, the Group is subject to percentage and other taxes (presented as Taxes and Licenses in the statements of income) as well as
income taxes. Percentage and other taxes paid consist principally of gross receipt tax (GRT) and documentary stamp taxes (DST).
Income taxes include the corporate income tax, as discussed below, and final tax paid at the rate of 20% on gross interest income from government
securities and other deposit substitutes. These income taxes, as well as the deferred tax benefits and provisions, are presented as Provision for income
tax in the statements of income.
Republic Act (RA) No. 9337, An Act Amending National Internal Revenue Code, provides that the RCIT rate shall be 35% until January 1, 2009. Starting
January 1, 2009 the RCIT rate shall be 30%. It also provides for the change in GRT rate from 7% to 5%. However, such amendments have been subject
to temporary restraining order by the Supreme Court. On October 8, 2005, the
Supreme Court has ruled that RA No. 9337 is constitutional and took effect on November 1, 2005. Starting November 1, 2005, interest allowed as a
deductible expense is reduced by an amount equivalent to 42% of interest income subjected to final tax. A MCIT of 2% on modified gross income is
computed and compared with the RCIT. Any excess of the MCIT over the RCIT is deferred and can be used as a tax credit against future income tax
liability for the next three years from the year of inception. In addition, the NOLCO is allowed as a deduction from taxable income in the next three years
from the year of inception.
Current tax regulations also provide for the ceiling on the amount of entertainment, amusement and recreation (EAR) expense that can be claimed as a
deduction against taxable income. Under the regulations, EAR expense allowed as a deductible expense is limited to the actual EAR paid or incurred but
not to exceed 1% of the Parent Companys net revenue.
Effective in May 2004, Republic Act No. 9294 restores the tax exemption of FCDUs and offshore banking units (OBUs). Under such law, the income
derived by the FCDU from foreign currency transactions with nonresidents, OBUs, local commercial banks including branches of foreign banks is taxexempt while interest income on foreign currency loans from residents other than OBUs or other depository banks under the expanded system is subject
to 10% gross income tax.
The provision for income tax consists of:
Consolidated
2008
2009
Current:
Final tax
MCIT
RCIT
Deferred
2007
Parent Company
2009
2008
2007
P442,694,379
54,297,380
517,269
P302,945,013
36,378,783
8,708,191
P244,733,531
55,797,056
P430,596,178
54,297,380
P301,550,686
36,378,783
P243,991,463
53,216,733
497,509,028
P497,509,028
348,031,987
(82,787,311)
P265,244,676
300,530,587
(108,275,785)
P192,254,802
484,893,558
P484,893,558
337,929,469
(82,787,311)
P255,142,158
297,208,196
(108,275,785)
P188,932,411
CHINA BANK
113
2009 ANNUAL REPORT
The details of the net deferred tax assets follow:

Consolidated
2009
Deferred tax assets (liabilities) on:
Allowance for impairment and credit losses
Revaluation increment on land
Unrealized gain or loss on FVPL and AFS
Fair value adjustment on asset foreclosures and
dacion transactions - net of depreciated portion
Recognition of net plan assets
NOLCO
Accrued rent
Unamortized past service cost
Others
2008
Parent Company
2009
2008
P1,666,729,967
(547,404,615)
(168,116,752)
P1,648,547,029
(547,404,615)
(226,846,407)
P1,666,671,511
(547,404,615)
(167,885,149)
P1,647,333,334
(547,404,615)
(226,846,407)
(90,591,056)
(71,933,628)
93,996,011
18,274,374
10,191,246
2,743,455
P913,889,002
(68,563,207)
(30,506,730)
102,420,684
18,274,374
13,269,560
3,185,768
P912,376,456
(90,591,056)
(73,935,608)
93,996,011
18,274,374
8,851,525
P907,976,993
(68,563,207)
(30,506,730)
102,420,684
18,274,374
13,269,560
P907,976,993
The Group did not set up deferred tax assets on the following temporary differences as it believes that it is highly probable that these temporary
differences will not be realized in the near foreseeable future:
Consolidated
2009
2008
P3,492,333,441
P3,164,023,554
175,052,846
49,709,335
101,275,848
46,978,468
10,661,285
P3,768,662,135
P3,271,372,642
Allowance for impairment and credit losses

Accrued compensated absences
Excess MCIT over RCIT
NOLCO
Parent Company
2009
2008
P3,353,839,926
P3,052,351,787
175,052,846
49,709,335
101,275,848
46,978,468
10,661,285
P3,630,168,620
P3,159,700,875
Details of the Parent Companys NOLCO follow:

Inception Year
2008
2009
Amount
P323,091,340
313,320,039
P636,411,379
Used/Expired
P
Balance
P
Applied
Amount
P
Remaining
Balance
P10,599,685
36,378,783
54,297,380
P101,275,848
Expiry Year
2011
2012
As of December 31, 2009, details of the excess MCIT over RCIT of the Parent Company follow:
Original
Amount
P10,599,685
36,378,783
54,297,380
P101,275,848
Inception Year
2007
2008
2009
Expired
Amount
P
Expiry Year
2010
2011
2012
The reconciliation of the statutory income tax to the provision for income tax of the Group follows:
Statutory income tax

Tax effects of:
FCDU income
Interest income subjected
to final tax
Non-taxable income
Nondeductible expenses
Others
Provision for income tax
2009
P1,380,041,505
Consolidated
2008
2007
P1,113,851,439
P1,355,791,439
2009
P1,351,795,288
Parent Company
2008
2007
P1,078,126,932 P1,349,677,827
(589,098,473)
(421,201,428)
(516,591,637)
(589,098,473)
(421,201,428)
(516,591,637)
(100,606,777)
(817,794,804)
453,991,025
170,976,552
P497,509,028
(261,042,793)
(554,802,044)
303,867,527
84,571,975
P265,244,676
(271,564,396)
(536,674,136)
415,928,422
(254,634,890)
P192,254,802
(105,276,793)
(816,534,979)
473,331,963
170,676,552
P484,893,558
(274,695,491)
(555,170,717)
360,927,268
67,155,594
P255,142,158
(195,596,222)
(536,521,962)
415,398,112
(327,433,707)
P188,932,411
CHINA BANK
114
2009 ANNUAL REPORT
26. Trust Operations

Securities and other properties (other than deposits) held by the Parent Company in fiduciary or agency capacities for clients and beneficiaries are not
included in the accompanying balance sheets since these are not assets of the Parent Company (see Note 28).
In compliance with the requirements of current banking regulations relative to the Parent Companys trust functions: (a) government securities included
under AFS financial assets in the balance sheet with a total face value of P674.41 million and P538.18 million as of December 31, 2009 and 2008,
respectively, are deposited with the BSP as security for the Parent Companys
faithful compliance with its fiduciary obligations; and (b) a certain percentage of the Parent Companys trust fee income is transferred to surplus reserve.
This yearly transfer is required until the surplus reserve for trust function equals 20% of the Parent Companys authorized capital stock.
27. Related Party Transactions

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the
other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common
significant influence. Related parties may be individuals or corporate entities.
In the ordinary course of business, the Group has loans and other transactions with its directors, officers, stockholders and related interests (DOSRI).
Under the Groups policy, these loans and other transactions are made substantially on the same terms as with other individuals and businesses of
comparable risks. The amount of individual loans to DOSRI, of which 70% must be secured, should not exceed the amount of their respective deposits
and book value of their respective investments in the Group. In the aggregate, loans to DOSRI generally should not exceed the Groups total capital funds
or 15% of the Groups total loan portfolio, whichever is lower. As of December 31, 2009 and 2008, the Group has complied with all these regulatory
requirements.
On January 31, 2007, BSP Circular No. 560 was issued providing the rules and regulations that govern loans, other credit accommodations and guarantees
granted to subsidiaries and affiliates of banks and quasi-banks. Under the said circular, the total outstanding exposures to each of the banks subsidiaries
and affiliates shall not exceed 10% of banks net worth, the unsecured portion of which shall not exceed 5% of such net worth. Further, the total
outstanding exposures to subsidiaries and affiliates shall not exceed 20% of the net worth of the lending bank. BSP Circular No. 560 is effective February
15, 2007.
BSP Circular No. 423 dated March 15, 2004 amended the definition of DOSRI accounts.
The following table shows information relating to the loans, other credit accommodations and guarantees classified as DOSRI accounts under regulations
existing prior to said circular and new DOSRI loans, other credit accommodations granted under said circular:
Total outstanding DOSRI loans

Percent of DOSRI accounts granted under regulations
existing prior to BSP Circular No. 423
Percent of DOSRI accounts granted under BSP Circular No. 423
Percent of DOSRI loans to total loans
Percent of unsecured DOSRI loans to total DOSRI loans
Percent of past due DOSRI loans to total DOSRI loans
Percent of non-performing DOSRI loans to total DOSRI loans
2009
P1,934,862,209
Consolidated
2008
P8,848,530,568
1.65%
1.65%
2.33%
7.53%
7.53%
0.26%
Parent Company
2009
2008
P1,934,862,209 P8,848,530,568
1.65%
1.65%
2.33%
7.53%
7.53%
0.26%
The following table shows information relating to the loans, other credit accommodations and guarantees, as well as availments of previously approved
loans and committed credit lines not considered DOSRI accounts prior to the issuance of said circular but are allowed a transition period of two years
from the effectivity of said circular or until said loan, other credit accommodations and guarantees become past due, or are extended, renewed or
restructured, whichever comes later, as of December 31, 2009 and 2008:
CHINA BANK
115
2009 ANNUAL REPORT
Consolidated
Total outstanding non-DOSRI accounts prior to BSP Circular No. 423
Percent of unsecured non-DOSRI accounts prior to
BSP Circular No. 423 to total loans
Percent of past due non-DOSRI accounts prior to
Percent of non-performing non-DOSRI accounts prior to
Parent Company
2009
2008
P135,000
P25,000
2009
P135,000
2008
P25,000
Other related party transactions conducted in the normal course of business include the availment of computer and general banking services of a
subsidiary to meet the Parent Companys reporting requirements.
The following table shows the related party transactions included in the Parent Companys financial statements:
Nature of Transaction
Elements of Transactions
Balance Sheet Amounts
Income Statement Amounts
2009
2008
2009
2008
Deposit liabilities
Accounts payable
Interest expense
P35,315,746
P7,040,621
155,158
413,435
613,406
Deposit liabilities
Service fees
Interest expense
1,771,354
119,202,090
1,225,455
773,715
9,213,977
CBC Properties and

Computer Center, Inc.
Deposit liabilities
Accounts payable
Service fees
Interest expense
1,672,558
9,149,195
54,787,750
273,676
China Bank Savings, Inc.
Deposit liabilities
Interest expense
Due from affiliate
140,233,652
97,664,862
76,429,392
3,030,816
Related party
China Bank Insurance
Brokers, Inc.
108,231,847
The remuneration of directors and key management personnel (included under Compensation and fringe benefits in the statement of income) of the
Group and Parent Company are as follows:
Short-term benefits
Post-employment benefits
2009
P199,643,512
3,177,427
P202,820,939
Consolidated
2008
P222,958,997
4,086,068
P227,045,065
2007
P219,465,663
3,167,193
P222,632,856
2009
P188,959,726
1,982,633
P190,942,359
Parent Company
2008
P212,141,327
2,948,714
P215,090,041
2007
P211,296,791
2,141,203
P213,437,994
28. Commitments and Contingent Assets and Liabilities

In the normal course of the Groups operations, there are various outstanding commitments and contingent liabilities which are not reflected in the
accompanying financial statements. Management does not anticipate any material losses as a result of these transactions.
CHINA BANK
116
2009 ANNUAL REPORT
The following is a summary of contingencies and commitments of the Group and Parent Company with the equivalent peso contractual amounts:
Consolidated
2009
2008
P70,304,881,018 P51,237,882,857
8,385,049,125
7,431,089,750
2,100,822,691
466,860,956
423,539,684
489,182,588
409,049,268
297,903,709
163,040,467
101,994,081
130,693,963
159,314,017
1,377,065,475
1,476,727,170
Trust department accounts (Note 26)

Unused commercial letters of credit
Outstanding guarantees issued
Deficiency claims receivable
Late deposits/payments received
Inward bills for collection
Outward bills for collection
Others
Parent Company
2009
2008
P68,333,690,879 P50,291,492,036
8,385,049,125
7,431,089,750
2,100,822,691
466,860,956
423,539,684
489,182,588
408,752,189
297,903,709
163,040,467
101,994,081
130,494,742
149,206,596
1,377,065,144
1,476,726,805
29. Segment Information

The Groups operating businesses are recognized and managed separately according to the nature of services provided and the markets served, with each
segment representing a strategic business unit. The Groups business segments are as follows:
a.
Consumer Banking Group - principally handles housing and auto loans for individual and corporate customers;
b.
Account Management Group - principally administers all the lending, trade finance and corollary banking products and services offered to
corporate and institutional customers;
c.
Branch Banking Group - principally handles retail and commercial loans, individual and corporate deposits, overdrafts and funds transfer facilities,
trade facilities and all other services for retail customers;
d.
Treasury Group - principally provides money market, trading and treasury services, as well as the management of the Banks funding operations by
the use of government securities, placements and acceptances with other banks; and
e.
Others - principally handles other services including but not limited to asset management, insurance brokerage, remittances, operations and
financial control , and other support services.
The Group reports its primary segment information on the basis of the above-mentioned segments.
Segment assets are those operating assets that are employed by a segment in its operating activities that are either directly attributable to the segment
or can be allocated to the segment on a reasonable basis.
Segment liabilities are those operating liabilities that result from the operating activities of a segment and that either are directly attributable to the
segment or can be allocated to the segment on a reasonable basis.
Interest income is reported net as management primarily relies on the net interest income as performance measure, not the gross income and
expense.
The segment results include internal transfer pricing adjustments across business units as deemed appropriate by management. Transactions between
segments are conducted at estimated market rates on an arms length basis. Interest is charged/credited to the business units based on a pool rate which
approximates the marginal cost of funds.
CHINA BANK
117
2009 ANNUAL REPORT
Other operating income mainly consists of trading and securities gain (loss) - net, service charges, fees and commissions, trust fee income and foreign
exchange gain - net. Other operating expense mainly consists of compensation and fringe benefits, provision for impairment and credit losses, taxes and
licenses, occupancy, depreciation and amortization, stationery, supplies and postage and insurance. Other operating income and expense are allocated
between segments based on equitable sharing arrangements.
The Group has no significant customers which contributes 10% or more of the consolidated revenues.
The Groups asset producing revenues are located in the Philippines (i.e., one geographical location); therefore, geographical segment information is no
longer presented.
The following tables present relevant information regarding business segments as of and for the years ended December 31, 2009, 2008 and 2007
(in thousands):
2009
Results of Operations
Net interest income
Third party
Intersegment
Other operating income
Total revenue
Other operating expense
Income tax provision
Net income
Total assets
Total liabilities
credit losses
Capital expenditures
Net interest income
Third party
Intersegment
Total revenue
Net income
Total assets
Total liabilities
Provision for impairment
and credit losses
Consumer Banking
2008
2007
2009
Account Management
2008
2007
P1,274,029
(667,751)
606,278
45,138
651,416
(178,410)
473,006
P473,006
P14,404,055
P600,339
P5,816
P1,220,818
(856,871)
363,947
61,970
425,917
(119,937)
305,980
P305,980
P14,921,625
P625,594
P5,446
P1,015,247
(492,872)
522,375
40,857
563,232
(132,757)
430,475
P430,475
P13,450,822
P463,695
P4,176
P4,267,424
(2,343,495)
1,923,929
213,363
2,137,292
(261,149)
1,876,143
P1,876,143
P65,459,142
P2,598,582
P3,494
P3,805,844
(2,561,272)
1,244,572
256,507
1,501,079
(125,477)
1,375,602
P1,375,602
P65,333,997
P1,248,227
P3,421
P3,151,179
(1,579,851)
1,571,328
210,730
1,782,058
(238,773)
1,543,285
P1,543,285
P46,209,330
P2,660,824
P3,303
P7,794
P2,493
P
P2,979
P
P8,632
P152,249
P6,561
P105,593
P2,535
P
P5,014
2009
Branch Banking
2008
2007
2009
Treasury
2008
2007
(P2,489,006)
5,697,406
3,208,400
1,183,946
4,392,346
(3,335,020)
1,057,326
P1,057,326
P109,605,153
P153,199,381
P278,236
(P3,079,040)
6,274,307
3,195,267
1,091,063
4,286,330
(2,799,449)
1,486,881
P1,486,881
P96,328,531
P130,581,827
P193,995
(P2,339,233)
4,938,345
2,599,112
712,482
3,311,594
(2,287,003)
1,024,591
(283)
P1,024,308
P78,491,298
P111,682,968
P123,276
P3,961,151
(2,402,440)
1,558,711
1,698,960
3,257,671
(453,991)
2,803,680
P2,803,680
P99,339,737
P20,339,506
P7,007
P3,717,135
(2,802,057)
915,078
97,461
1,012,539
(201,148)
811,391
P811,391
P60,222,408
P26,716,573
P2,314
P3,813,389
(2,180,087)
1,633,302
814,513
2,447,815
(371,476)
2,076,339
(240,025)
P1,836,314
P59,878,308
P19,712,068
P1,864
P89,443
P41,619
P155,499
P465,430
P7,540
P1,022,176
P
P13,953
P
P9,136
P
P4,307
CHINA BANK
118
2009 ANNUAL REPORT
Net interest income
Third party
Intersegment
Total revenue
Net income
Total assets
Total liabilities
Provision for impairment
and credit losses
2009
Others
2008
2007
2009
Total
2008
2007
P1,222,440
(283,721)
938,719
963,078
1,901,797
(3,511,814)
(1,610,017)
(497,509)
(P2,107,526)
(P54,772,587)
P26,979,312
P373,418
P859,457
(54,106)
805,351
635,921
1,441,272
(2,238,693)
(797,421)
(265,245)
(P1,062,666)
(P28,259,507)
P23,498,145
P265,812
P855,838
(685,534)
170,304
893,551
1,063,855
(2,264,855)
(1,201,000)
48,053
(P1,152,947)
(P21,854,988)
P14,432,574
P248,970
P8,236,037
8,236,037
4,104,485
12,340,522
(7,740,384)
4,600,138
(497,509)
P4,102,629
P234,035,616
P203,667,120
P667,971
P6,524,215
6,524,215
2,142,922
8,667,137
(5,484,704)
3,182,433
(265,245)
P2,917,188
P208,547,054
P182,670,366
P470,988
P6,496,421
6,496,421
2,672,133
9,168,554
(5,294,864)
3,873,690
(192,255)
P3,681,435
P175,687,170
P148,952,129
P381,589
P542,898
P139,712
P45,618
P170,785
P293,038
P297,088
P792,384
P204,338
P306,710
P650,865
P300,578
P1,337,217
29. Earnings Per Share (EPS)

Basic earnings per share amounts are calculated by dividing the net income for the year by the weighted average number of common shares outstanding
during the year (adjusted for stock dividends).
The following reflects the income and share data used in the basic earnings per share computations:
2009
2008
2007
a.
Net income
P4,102,629,321
P2,917,188,008
P3,681,435,024
b. Weighted average number of common shares outstanding* (Note 21)
97,508,772
97,508,772
97,508,772
c.
Earnings per share (a/b)
P42.07
P29.92
P37.75
*Weighted average number of outstanding common shares in 2008 and 2007 was recomputed after giving retroactive effect to stock dividends
declared on May 7, 2008 and May 7, 2009 (see Note 21).
As of December 31, 2009, 2008 and 2007, there were no outstanding dilutive potential common shares.
Before consideration of the 10% and 15% stock dividends declared in 2009 and 2008, the EPS for 2008 and 2007 were P32.91 and P41.53, respectively
(see Note 21).
30. Financial Performance

The following basic ratios measure the financial performance of the Group and the Parent Company:
Consolidated
2009
2008
15.36%
11.98%
1.90
1.53
4.16
3.82
Return on average equity

Return on average assets
Net interest margin
CHINA BANK
119
2009 ANNUAL REPORT
Parent Company
2009
2008
15.36%
11.98%
1.90
1.53
4.16
3.82
China Bank Management Directory
CHAIRMAN OF THE BOARD

Gilbert U. Dee
PRESIDENT AND CEO
Peter S. Dee
EXECUTIVE VICE PRESIDENT AND COO
Ricardo R. Chua
SENIOR VICE PRESIDENTS

Rabboni Francis B. Arjonillo
Rhodora Z. Canto
Samuel L. Chiong
Antonio S. Espedido, Jr.

Margarita L. San Juan
Nancy D. Yang
Ramon R. Zamora
Alberto Emilio V. Ramos

Rene J. Sarmiento
Philip S.L. Tsai

Roberto C. Uyquiengco
Patrick U. Go
Jose Leslie P. Javier
Shew Kou Y. Lee
Antonio Owen S. Maramag
Delia Marquez
Corazon I. Morando
Danilo V. Ochengco
Elaine Marisa L. Ong
Vichelli Churchill T. Say
Elizabeth C. Say
Henry D. Sia
Shirley G. K. T. Tan
Manuel M. Te
Marisol M. Teodoro
Maria Rosanna L. Testa
Omar D. Vigilia
Lydia Y. Yu
FIRST VICE PRESIDENTS

Alexander C. Escucha
Rosemarie C. Gan
VICE PRESIDENTS
Jenny R. Amisola
Layne Y. Arpon
Lilibeth R. Cario
Melissa F. Corpus
Angela D. Cruz
Gerard Majella T. Dee
Maria Luz B. Favis
Madelyn V. Fontanilla
Dante T. Fuentes
SENIOR ASSISTANT VICE PRESIDENTS

Camilo S. Cape
Jose Francisco Q. Cifra
Lily I. Reyes-Lao
Wilfredo L. Sy
CHINA BANK
U U
Noemi L. Uy
2009 ANNUAL REPORT
ASSISTANT VICE PRESIDENTS

Evelyn T. Alameda
Patrick Y. Ang
Cristina P. Arceo
Restituto B. Bayudan
Victor Geronimo S. Calo
Jeannette H. Chan
Marie Carolina L. Chua
Victoria L. Chua
Grace A. Cruz
Roberto B. Cruz
James Christian T. Dee
Reynaldo P. Del Rosario, Jr.
Adela A. Evangelista
Caezar P. Evangelista
Cristina F. Gotuaco
Shirley C. Lee
Maria Alicia P. Libo-on
Dorothy T. Maceda
Mandrake P. Medina
Jose L. Osmea, Jr.
Rafael Ramon C. Ramos
Danilo T. Sarita
Maria Marta Theresa S. Suarez
Cynthia U. Surpia
Clara C. Sy
Stephen Y. Tan
Irene C. Tanlimco
Jasmin O. Ty
Virginia Y. Uy
Reymundo M. Valbuena
Rosario D. Yabut
George C. Yap
Jocelyn O. Yu
Marilyn G. Yuchenkang
Grace Y. Ho
Ruth D. Holmes
Alex A. Jacob
Antonette F. Justiniano
Vivian T. Kho
Melecio C. Labalan, Jr.
Eric Y. Lee
Luningning U. Lim
Minda A. Lim
Juan Jesus C. Macapagal
Jennifer Y. Macariola
Jocelyn A. Manga
Gloria G. Maosca
Ordon P. Maningding
Erlan Antonio B. Olavere
Remedios Emilia R. Olivar
Enrico J. Ong
Remberto D. Orcullo
Juvy J. Pabustan
Josephine D. Paredes
Frederick M. Pineda
Wilfredo A. Quijencio
Hidelisa L. Robinol
Arnulfo H. Roldan
Ana Ma. Raquel Y. Samala
Estefania A. Santos
Fernando S. Santos III
Nycette O. San Diego

Roque A. Secretaria, Jr.
Emilie L. Sia
Paul J. Siongco
Ma. Cecilia D. So
Sharlene S. Soo
Joselito O. Suyat
Anna Liza M. Tan
Belenette C. Tan
Jeanny C. Tan
Julieta C. Tan
Roxana Angela S. Tan
Elizabeth Q. Tee
Ma. Cecilia V. Tejada
Jacqueline T. Tomacruz
Edna A. Torralba
Ruben M. Torres
Christopher C. Ty
Hudson Q. Uy
Lauro C. Valera
Anthony Ariel C. Vilar
Carina L. Yandoc
Sandra Mae Y. Yao
Isabel D. Yap
Vicente S. Yap, Jr.
SENIOR MANAGERS
Victoria D. Advincula
Ma. Hildelita P. Alano
Jose B. Aligno Jr
Ramiro A. Amanquiton
Freddie S. Bandong
Ma. Luisa O. Baylosis
Meneleo S. Bernardo
Renito R. Bognot
Alex M. Campilan
Victoria G. Capacio
Julie C. Capalongan
Nolan C. Casiding
Ma. Rosalie F. Cipriano
Casimiro L. Cortes
Dante S. Cortez
Aida D. Cristobal
Mary Evangeline A. Cruz
Ma. Jeanette D. Cuyco
Rodolfo S. De Lara
Melanie D. De Vera
Norman D. Del Carmen
Mary Ann R. Ducanes
Therese G. Escolin
Susan U. Ferrer
Cesare Edwin M. Garcia
Marites B. Go
Fernando T. Herrera
CHINA BANK
U U
2009 ANNUAL REPORT
Branch Network
MAKATI MAIN BRANCH (HEAD OFFICE)

CBC Bldg., 8745 Paseo de Roxas cor. Villar Sts.
Makati City
Trunkline: 885-5555
(Private Exchange Connecting All Departments)
Fax No.: 892-0220; 817-1325
Branch Head: Caezar P. Evangelista
METRO MANILA BRANCHES

ANTIPOLO CITY BRANCH
G/F BudgetLane Arcade, No. 6, Provincial Road
Brgy. San Jose, Antipolo City, Rizal
Tel. No.: 650-3277; 650-2087; 695-1509
Fax No.: 650-2640
Branch Head: Judy Kristine N. Achacoso
BINONDO BUSINESS CENTER

CBC Bldg., Dasmarias cor. Juan Luna Sts.
Binondo, Manila
Trunklines: 247-5388; 885-5222
(Private Exchange Connecting All Departments)
Fax No.: 241-7058; 242-7225
Center Head: Rosemarie C. Gan
North Luzon I: Noemi L. Uy, SAVP

North Luzon II: Roberto C. Uyquiengco, FVP
North Luzon III: Victoria L Chua, AVP
North Luzon IV: Shirley G.K.T. Tan, VP
North Luzon V: Camilo S. Cape, SAVP
North Luzon VI: Grace A. Cruz, AVP
Philippine Whithasco Bldg.

420 Araneta Ave., cor. Bayani St.
Quezon City
Tel. No.: 731-2252; 731-2261; 732-4153
731-2179; 731-2216
Fax No.: 731-2243
Branch Head: Arnulfo C. Tongson
ARRANQUE BRANCH
Don Felipe Building
675 Tomas Mapua St., Sta. Cruz, Manila
Tel. No.: 733-3477; 734-4777; 733-7704
733-8335 to 40; 734-4497
734-4501/06
Fax No.: 733-3481
Branch Head: Jeanette H. Chan
ASUNCION BRANCH
SOUTH LUZON REGION
Philip S.L. Tsai
FVP & Region Head
South Luzon I: Jasmin O. Ty, AVP
South Luzon II: Dante S. Cortez, SM
South Luzon III: Clara C. Sy, AVP
South Luzon IV: Adela A. Evangelista, AVP
South Luzon V: Lydia Y. Yu, VP
South Luzon VI: Mandrake P. Medina, AVP
South Luzon VII: Reymundo M. Valbuena, AVP
North Bay Shopping Center, Honorio Lopez

Boulevard, Balut, Tondo, Manila
Tel. No.: 253-9921/29; 253-9620
251-1182/86
Fax No.: 253-9917
Branch Head: Josephine D. Paredes
BANAWE BRANCH
ARANETA AVE. BRANCH
NORTH LUZON REGION HEAD

Roberto C. Uyquiengco
FVP & Region Head
BALUT BRANCH
Units G6 & G7 Chinatown Steel Towers

Asuncion St., San Nicolas, Manila
Tel. No.: 241-2311/52/59/61
Fax No.: 241-2352
Branch Head: Mary Ann E. Tiu
CBC Building, 680 Banawe Ave.

Sta. Mesa Hts. District I, Quezon City
Tel. No.: 743-7486/88; 416-7028/7030
711-8694
Fax No.: 743-7487
Branch Head: Rodolfo S. De Lara
BANAWE - MA. CLARA BRANCH

G/F Prosperity Bldg., Banawe St. Quezon City
Tel. No.: 732-1060; 740-4864; 743-8967
Fax No.: 740-4864
Branch Head: Raidis M. De Guzman
BEL-AIR BRANCH
G/F Avant Building, 48 Jupiter cor. Mars Sts.
Bel-Air Village, Makati City
Tel. No.: 897-2212; 899-4186/0685
Fax No.: 890-4062
Branch Head: Perfecto F. Diosana, Jr.
BETTER LIVING SUBD. BRANCH

128 Doa Soledad Ave., Paraaque City
Tel. No.: 556-3467; 556-3468; 556-3470
Fax No.: 556-3470
Branch Head: Wilbert P. Belicena
AYALA - ALABANG BRANCH

G/F, CBC-Building Acacia Ave., Madrigal Business
Park, Ayala Alabang, Muntinlupa City
Tel. No.: 807-0673/74; 850-3785/9640/8888
Fax No.: 850-8670
Branch Head: Victoria G. Capacio
BF HOMES BRANCH
Aguirre cor. El Grande Aves., United BF Homes
Paraaque City
Tel. No.: 825-6138/6891/6828
Fax No.: 825-5979
Branch Head: Charity N. Santos
AYALA - COLUMNS BRANCH

VISAYAS MINDANAO REGION
Patrick U. Go
VP & Region Head
Visayas I: Henry D. Sia, VP
Visayas II: Cynthia U. Surpia, AVP
Mindanao I: Hudson Q. Uy, SM
Mindanao II: Vicente S. Yap, Jr., SM
G/F The Columns Tower 3

Ayala Ave., Makati City
Tel. No.: 915-3672/3673/3674/3675
Fax No.: 915-3672
Branch Head: Rita L. Michael
BALINTAWAK - BONIFACIO BRANCH

657 A. Bonifacio Ave.
Balintawak, Quezon City
Tel. No.: 361-3449; 361-7825; 362-3660
361-0450
Fax No.: 361-0199
Branch Head: Vivian T. Kho
CHINA BANK
U U
BF HOMES - AGUIRRE BRANCH

Margarita Centre, Aguirre Ave.
Cor. Elsie Gaches St.
BF Homes, Paraaque City
Tel. No.: 799-4707/4942; 659-3359/3360
556-5845
Fax No.: 659-3359
Branch Head: Elma G. Villaroman
BF RESORT VILLAGE BRANCH

BF Resort Drive cor. Gloria Diaz St.
BF Resort Village Talon Dos, Las Pias City
Tel. No.: 873-4542; 873-4541; 873-4540
Fax No.: 873-4543
Branch Head: Expedito P. Fernandez
2009 ANNUAL REPORT
BLUMENTRITT BRANCH
CUBAO - AURORA BRANCH
E. RODRIGUEZ SR. BLVD. BRANCH
1777-1781 Cavite cor. Leonor Rivera St.

Blumentritt, Sta. Cruz, Manila
Tel. No.: 742-0254;711-8589
Fax No.: 711-8541
Branch Head: Jennet P. Jose
911 Aurora Boulevard Extension

Cor. Miami St., Cubao, Quezon City
Tel. No.: 912-5164/57
913-4675/76; 911-3524
Fax No.: 912-5167
Branch Head: Dante S. Cortez
CBC Bldg., 286 E. Rodriguez Sr. Blvd.

Brgy. Damayang Lagi, Quezon City
Tel. No.: 416-3166; 722-5860; 722-5893
725-9641 (MCB)
Fax No.: 726-2865
Branch Head: Ana Ma. Raquel Y. Samala
D. TUAZON BRANCH
ELCANO BRANCH
174 A-B D. Tuazon St., Brgy. Maharlika

Sta. Mesa Heights, Quezon City
Tel. No.: 731-2516/2508
Fax No.: 731-0592
Branch Head: Ella Jane D. Cortez
G/F Elcano Tower, Elcano St.

San Nicolas, Manila
Tel. No.: 244-6760; 244-6765; 244-6779
Fax No.: 244-6760
Branch Head: Gervie Roy S. Mendoza
DASMARIAS VILLAGE BRANCH
ERMITA BRANCH
2283 Pasong Tamo Ext. cor. Lumbang St.

Makati City
Tel. No.: 894-2392/93; 813-2958
Fax No.: 894-2355
Branch Head: Ruth D. Holmes
G/F A, Ma. Natividad Bldg.

470 T. M. Kalaw cor. Cortada Sts.
Ermita, Manila
Tel. No.: 525-6477; 567-9862;536-7794
525-6544;523-0074
Fax No.: 525-8137
Branch Head: Gloria G. Maosca
BO. KAPITOLYO BRANCH

G/F P&E Building, 12 United cor. First Sts. Bo.
Kapitolyo, Pasig City
Tel. No.: 634-8370/8915/3697
Fax No.: 634-7504
Branch Head: Ana Victorina D. Camacho
BONNY SERRANO BRANCH

G/F Greenhills Garden Square, 297
Col. Bonny Serrano Ave., Quezon City
Tel. No.: 410-0677; 410-3348; 410-7177
Fax No.: 410-0677
Branch Head: Arnold Y. Matutina
CAINTA BRANCH
CBC Bldg (Beside Sta. Lucia East Mall)
Felix Ave. (Imelda Ave.), Cainta, Rizal
Tel. No.: 646-0691/93; 645-9974; 682-1795
Fax No.: 646-0050
Branch Head: Hidelisa L. Robinol
CAPITOL HILLS BRANCH

G/F 88 Design Pro Building Capitol Hills, Old
Balara, Quezon City
Tel. No.: 952-7776/7805/7804
Fax No.: 952-7806
Branch Head: Joanna Leigh P. Ralleca
COMMONWEALTH AVE. BRANCH

LGF Ever Gotesco Mall, Commonwealth Center
Commonwealth Ave. cor.
Don Antonio Road, Quezon City
Tel. No.: 932-0818/0820; 431-5000/01
Fax No.: 932-0822
Branch Head: Meneleo S. Bernardo
CONGRESSIONAL AVE. BRANCH

G/F Unit C The Arete Square, Congressional Ave.
Project 8, Quezon City
Tel. No.: 351-8648; 351-8645; 351-8646
Fax No.: 351-8645
Branch Head: Joseph B. Belisario
CORINTHIAN HILLS BRANCH

G/F The Clubhouse, Corinthian Hills, Temple Drive
Brgy. Ugong Norte, Quezon City
Tel. No.: 637-3170/3180/1915
Fax No.: 637-1905
Branch Head: Ma. Anacleta B. Gloria
CUBAO - ARANETA BRANCH
DEL MONTE AVE. BRANCH

G. Araneta Ave. cor.
Del Monte Ave., Quezon City
Tel. No.: 740-4613; 413-2825/26
871-2745; 5595529
Fax No.: 712-6788
Branch Head: Wendy C. Tan
ESPAA BRANCH
Espaa cor. Valencia Sts., Sampaloc, Manila
Tel. No.: 741-9572/6209/6208/9565
Fax No.: 741-6207
Branch Head: Jose Omar S. Yuan
DEL MONTE - MATUTUM BRANCH
EVANGELISTA BRANCH
202 Del Monte Ave. near

Cor. Matutum St. Brgy St. Peter, Quezon City
Tel. No.: 738-6028; 738-6098; 413-2118
416-7791
Fax No.: 416-7791
Branch Head: Henry D. Salazar
Evangelista cor. Gen. Estrella Sts.

Bangkal, Makati City
Tel. No.: 759-5095; 759-5096; 856-0434
856-0433
Fax No.: 759-5096
Branch Head: Sheijan A. Baladji
DIVISORIA - STA. ELENA BRANCH
EXAMINER BRANCH
New Divisoria Condominium Center

632 Sta. Elena St. Binondo, Manila
Tel. No.: 247-1435/36/37
Fax No.: 247-1436
Branch Head: Mary Elizabeth Uy
1525 Quezon Ave. cor. Examiner St.

West Triangle, Quezon City
Tel. No.: 376-3313/3314/3317/3318
Fax No.: 376-3315
Branch Head: Ma. Salome D. Garcia
DON ANTONIO BRANCH
FAIRVIEW BRANCH
G/F Royale Place, Don Antonio Ave.

Brgy. Old Balara, Quezon City
Tel. No.: 932-9477; 952-9678/9354
Fax No.: 952-9344
Branch Head: Lilibeth M. David
G/F Angelenix House, Fairview Ave.

Cor. Camaro St., Quezon City
Tel. No.: 937-5597; 938-9636; 937-8086
461-3004
Fax No.: 937-8086
Branch Head: Marilyn L. Navarro
E. RODRIGUEZ- HILLCREST BRANCH

402 E. Rodriguez Sr. Blvd.
Cubao, Quezon City
Tel. No.: 571-8927; 571-8928; 571-8929
Fax No.: 571-8927
Branch Head: Rachel D. Umali
Shopwise Arcade Building, Times Square St.

Araneta Shopping Center, Cubao, Quezon City
Tel. No.: 911-2369/70; 438-3830-32; 911-2397
Fax No.: 911-2432
Branch Head: Jasmin O. Ty
CHINA BANK
U U
FILINVEST CORPORATE CITY BRANCH

G/F Wilcon Depot, Alabang- Zapote road
Cor. Bridgeway Ave. Filinvest Corporate City
Alabang, Muntinlupa
Tel. No.: 775-0097/0126; 842-1993/2198
Fax No.: 775-0322
Branch Head: Mary Grace D.P. Macaraig
2009 ANNUAL REPORT
Branch Network
FORT BONIFACIO GLOBAL CITY

BRANCH
G/F Marajo Tower, 26th St. cor. 4th Ave.
Fort Bonifacio Global City, Taguig City
Tel. No.: 799-9072/9074; 856-4416/4891/5196
403-1558 (MCB)
Fax No.: 856-4416
Branch Head: Shellane S. Salgatar
GIL PUYAT AVE. BRANCH

G/F HPL Bldg., No. 60 Sen. Gil Puyat Ave.
Makati City
Tel. No.: 844-0492/94; 844-0688/90
Fax No.: 844-0497
Branch Head: Gladys P. Isidro
GREENBELT 1 BRANCH
G/F Greenbelt 1, Legaspi St. near
Cor. Paseo de Roxas, Makati City
Tel. No.: 836-1387; 836-1405; 836-1406
Fax No.: 836-1406
Branch Head: Raiza Valeshkaya U. Navarro
GREENHILLS BRANCH
G/F Gift Gate Bldg, Greenhills Shopping Center
San Juan, Metro Manila
Tel. No.: 721-0543/56; 721-3189; 727-9520
724-5078; 724-6173; 727-2798
Fax No.: 726-7661
Branch Head: Maria Marta Theresa S. Suarez
GREENHILLS - ORTIGAS BRANCH

CBC-Building, 14 Ortigas Ave.
Greenhills, San Juan, Metro Manila
Tel. No.: 723-0530/01; 723-0502/04
726-1492 (Area Head)
Fax No.: 723-0556; 725-9025
Branch Head: Lilian B. Orlina
HEROES HILLS BRANCH

Quezon Ave. cor. J. Abad Santos St.
Heroes Hills, Quezon City
Tel. No.: 799-2808/2421; 411-3375; 412-5697
Fax No.: 799-2421
Branch Head: Marlon Darcy A. Mendoza
ILAYA BRANCH
947 APL-YSL Bldg., Ilaya, Tondo, Manila
Tel. No.: 245-2416; 245-2548; 245-2557
Fax No.: 245-2545
Branch Head: Jefferson G. Ching
INTRAMUROS BRANCH
409 A. Soriano Ave., Intramuros, Manila
Tel. No.: 528-4241; 536-1044; 536-5971
Fax No.: 536-1044
Branch Head: Michael M. Faustino
J. ABAD SANTOS AVE. BRANCH
LAS PIAS - MANUELA BRANCH
2159 J. Abad Santos Ave., cor. Batangas St.

Tondo, Manila
Tel. No.: 255-1201 to 02; 255-1204
Fax No.: 255-1203
Branch Head: Gil P. Navelgas
Alabang-Zapote Road cor Philamlife Ave.

Pamplona Dos, Las Pias City
Tel. No.: 872-9801/9572/9533; 872-0770
Fax No.: 871-0771
Branch Head: Mario D. Dalangin
JUAN LUNA BRANCH
LEGASPI VILLAGE - AIM BRANCH
G/F Aclem Building, 501 Juan Luna St.

Binondo, Manila
Tel. No.: 247-3570/3795/3786; 480-0211
Fax No.: 247-3795
Branch Head: Mary Ann K. Abrigo
G/F Cacho-Gonzales Building,

101 Aguirre cor. Trasierra Sts.
Legaspi Village, Makati City
Tel. No.: 818-8156; 818-0734
818-9649; 894-5882 to 85
Fax No.: 818-0240
Branch Head: Ma. Luisa C. Rivera
KALAYAAN AVE. BRANCH

G/F PPS Building, Kalayaan Ave., Quezon City
Tel. No.: 332-3858; 332-3859; 332-3860
Fax No.: 332-3859
Branch Head: Rowena C. Lagman
KALOOKAN BRANCH
CBC Bldg., 167 Rizal Ave. Extension
Grace Park, Kalookan City
Tel. No.: 364-0515/35; 364-0717/31
364-0494; 364-9948; 366-9457
Fax No.: 364-9864
Branch Head: Danilo T. Sarita
KALOOKAN- MONUMENTO BRANCH

779 McArthur Highway, Kalookan City
Tel. No.: 364-2576/2571; 361-3270
Fax No.: 361-3271
Branch Head: Mercedez F. Lazaro
KAMIAS BRANCH
G/F CRM Building II, 116 Kamias Road cor.
Kasing-Kasing St., Quezon City
Tel. No.: 433-6007; 920-7367; 920-8770
Fax No.: 920-5723
Branch Head: Margie I. De Asis
LEGASPI VILLAGE
C. PALANCA BRANCH
Suite A, Basic Petroleum Building
104 C. Palanca Jr. St.
Tel. No.: 894-5915/18; 810-1464
Fax No.: 894-5868
Branch Head: Ma. Rosalie F. Cipriano
LEGASPI VILLAGE - PEREA BRANCH

G/F Greenbelt Mansion, 106 Perea St.
Tel. No.: 893-2273/2272/2827
Fax No.: 893-2272
Branch Head: Paul J. Bugayong
LEGASPI VILLAGE - SALCEDO BRANCH

G/F Fedman Suites, 199 Salcedo St.
Tel. No.: 893-7680; 893-2618; 759-2462
893-1503; 816-0905
Fax No.: 893-3746
Branch Head: Manuel O. Yap
LIBIS BRANCH
KARUHATAN BRANCH
248 McArthur Highway, Karuhatan
Valenzuela City
Tel. No.: 291-0431/0175; 440-0033
Fax No.: 440-00-33
Branch Head: Rosa C. Arteche
KATIPUNAN AVE.
ST. IGNATIUS BRANCH
Unit D, Techno Plaza One, Eastwood City

Cyberpark, E. Rodriguez Jr. Ave., (C-5)
Bagumbayan, Quezon City
Tel. No.: 706-3491/3493/1979/3320/3448
Fax No.: 438-5531
Branch Head: Ramiro A. Amanquiton
MAGALLANES VILLAGE BRANCH
CBC Building, 121 Katipunan Ave.

Brgy. St. Ignatius, Quezon City
Tel. No.:
912-5003; 913-3226
TeleFax No.: 913-5532
Branch Head: Ramiro Mateo D. Valdivia
G/F DHI Bldg., 2 Lapu-Lapu Ave. cor. EDSA

Magallanes Village, Makati City
Tel. No.: 757-0272/0240; 852-1290; 852-1245
Fax No.: 852-1245
Branch Head: Ma. Monica M. Ela
MAKATI AVE. BRANCH

LAS PIAS BRANCH
CBC Bldg., Alabang-Zapote Road cor. Aries St.
Pamplona Park Subd., Las Pias City
Tel. No.: 874-6204; 874-6210
Fax No.: 874-6414
Branch Head: Myra D. Adriano
CHINA BANK
U {U
G/F CBC Building, Makati Ave. cor. Hercules St.

Makati City
Tel. No.: 890-6971 to 74
Fax No.: 890-6975
Branch Head: Ma. Emma Lourdes A. Libas
2009 ANNUAL REPORT
MALABON - CONCEPCION BRANCH
MARIKINA - SSS VILLAGE BRANCH
NOVALICHES - TALIPAPA BRANCH
Gen. Luna cor. Paez Sts.

Concepcion, Malabon City
Tel. No.: 281-0102/03/04/05; 281-0293
Fax No.: 281-0106
Branch Head: Ma. Elenita M. Baradi
Lilac cor. Rainbow Sts. SSS Village

Concepcion Dos, Marikina City
Tel. No.: 948-5135; 941-7709; 997-3343
Fax No.: 942-0048
Branch Head: Nerissa J. Ramos
528 Copengco Bldg., Quirino Highway

Talipapa, Novaliches, Quezon City
Tel. No.: 936-2202; 936-3311; 936-7765
Fax No.: 936-5508
Branch Head: Ramir A. Dela Cruz
MALABON - GOV. PASCUAL BRANCH
MASANGKAY BRANCH
NOVALICHES - ZABARTE BRANCH
CBC Building, Gov. Pascual Ave.

Malabon City
Tel. No.: 352-1816;352-1817; 352-1822
Fax No.: 352-1822
Branch Head: Danilo T. Sarita
959-961 G. Masangkay St., Binondo, Manila

Tel. No.: 244-1828/35/48/56/59
Fax No.: 244-1833
Branch Head: Christopher C. Ty
G/F C.I. Bldg 1151 Quirino Highway

cor. Zabarte Road, Brgy. Kaligayahan
Novaliches, Quezon City
Tel. No.: 461-7691; 461-7694; 461-7698
Branch Head: Caroline K. Barcinal
MASANGKAY - LUZON BRANCH

MALABON - POTRERO BRANCH
CBC Bldg., McArthur Highway
Potrero, Malabon City
Tel. No.: 448-0524/25; 361-8671/7056
Fax No.: 448-0525
Branch Head: Leslie Y. De Los Angeles
MALANDAY BRANCH
Km. 614 McArthur Highway, Malanday
Valenzuela City
Tel. No.: 432-9787; 292-6956/57
445-3201; 432-9785
Fax No.: 292-6956
Branch Head: Miguela Gladiola G. Santos
MANDALUYONG - BONI AVE. BRANCH

G/F VOS Bldg. Boni Ave. cor. San Rafael St.
Mandaluyong City
Tel. No.: 746-6283/85; 534-2289
Fax No.: 534-1968
Branch Head: Paul J. Siongco
MANDALUYONG - PIONEER BRANCH

UG-05 Globe Telecom Plaza Tower I
Pioneer St., Mandaluyong City
Tel. No.: 746-6949; 635-4198; 632-1399
Fax No.: 746-6948
Branch Head: Marie Jane V. Malig
MARIKINA BRANCH
308 J.P. Rizal St., Sta. Elena, Marikina City
Tel. No.: 646-4281; 646-4277
646-4279; 646-1807
Fax No.: 646-1807
Branch Head: Crisostomo L. Celaje
MARIKINA - CONCEPCION UNO

BRANCH
G/F E & L Patricio Building, 809 J.P. Rizal Ave.
Concepcion Uno, Marikina City
Tel. No.: 997-0684; 997-0897; 998-1817
948-6120 (MCB)
Fax No.: 997-0897
Branch Head: Esperanza Q. Siquian
1192 G. Masangkay St., Sta. Cruz, Manila

Tel. No.: 255-0739; 254-9974; 254-9335
Fax No.: 254-9974
Branch Head: Christopher C. Ty
MAYON BRANCH
561-B. Mayon St., Brgy. N.S. Amoranto
Quezon City
Tel. No.: 731-9054/2766; 741-2409
Fax No.: 731-2766
Branch Head: Teresita G. Sy
MEZZA RESIDENCES BRANCH

G/F Mezza Residences, Aurora Blvd.
Cor. Araneta Ave., Brgy. Doa Imelda
Quezon City
Tel. No.: 516-0764; 516-0765; 516-0766
Fax No.: 516-0764
Branch Head: Arnulfo C. Tongson
N. DOMINGO BRANCH
G/F The Main Place, 1 Pinaglabanan
Cor. N. Domingo Sts., San Juan City
Tel. No.: 470-2915; 470-2916; 470-2917
Fax No.: 470-2916
Branch Head: Jocelyn S. Salvador
NAVOTAS BRANCH
CBC Building, 551 M. Naval St.
Bangkulasi, Navotas, Metro Manila
Tel. No.: 283-0752 to 54
Fax No.: 283-0752
Branch Head: Ma. Cristina B. Tamayo
NOVALICHES BRANCH
954 Quirino Highway, Novaliches Proper
Tel. No.: 936-3512; 937-1133/35/36
Fax No.: 936-1037
Branch Head: Isidro B. Mamuri
NUEVA BRANCH
Unit 557 & 559 G/F Ayson Building
Yuchengco St., Binondo, Manila
Tel. No.: 247-6374; 247-6396; 247-0493
480-00-66
Fax No.: 247-6396
Branch Head: Mary Ann E. Tiu
ONGPIN BRANCH
G/F Se Jo Tong Building,
808 Ongpin St., Sta. Cruz, Manila
Tel. No.: 733-8962 to 66; 735-5362
Fax No.: 733-8964
Branch Head: Flora C. Pea
ORTIGAS - ADB AVE. BRANCH

LGF City & Land Mega Plaza
ADB Ave. cor. Garnet Rd. Ortigas Ctr.
Pasig City
Tel. No.: 687-2457/58; 687-2226/3263
Fax No.: 687-2457
Branch Head: Jose Raymond G. Ignacio, Jr.
ORTIGAS AVE. EXT.

RIVERSIDE BRANCH
Unit 2-3 Riverside Arcade, Ortigas Ave. Extension
Cor. Riverside Drive, Brgy. Sta. Lucia, Pasig City
Tel. No.:
748-0703; 748-4426; 655-7403
655-8350
TeleFax No.: 655-8350
Branch Head: Tita C. Ibarbia
ORTIGAS CENTER BRANCH

Unit 101 Parc Chateau Condominium
Onyx cor. Sapphire St.s,
Ortigas Center, Pasig City
Tel. No.: 633-7960/70/53/54;634-0178
Fax No.: 633-7971
Branch Head: Virginia G. Go
ORTIGAS COMPLEX BRANCH

NOVALICHES
SANGANDAAN BRANCH
CBC Building, Quirino Highway
cor. Tandang Sora Ave., Brgy. Sangandaan
Tel. No.: 935-3049; 935-3491
Fax No.: 935-2130
Branch Head: Ronaldo T. Uy, Jr.
CHINA BANK
U xU
G/F Padilla Building, Emerald Ave.

Cor. Ruby Road, Ortigas Center, Pasig City
Tel. No.: 634-3469/9294/9293; 631-2772
Fax No.: 633-9039
Branch Head: Christabel Ethel C. Gabriana
2009 ANNUAL REPORT
Branch Network
ORTIGAS - JADE DRIVE BRANCH
PASIG - C. RAYMUNDO BRANCH
QUEZON AVE. BRANCH
Unit G-03, Antel Global Corporate Center

Jade Drive, Ortigas Center, Pasig
Tel. No.: 638-4489; 638-4490
638-4510; 638-4540
Fax No.: 638-4540
Branch Head: Grace N. Soriano
G/F MicMar Apartments No. 6353

C. Raymundo Ave., Brgy. Rosario, Pasig City
Tel. No.: 642-3652; 628-3912; 628-3922
Fax No.: 628-3922
Branch Head: Mary Roslyne D. Balatbat
18 G & D Bldg., Quezon Ave.

cor. D. Tuazon St., Q.C.
Tel. No.: 712-3676; 712-0424; 740-7779/80
712-1105; 416-8891; 638-2751
Fax No.: 712-3006
Branch Head: Anita Y. Samala
PASIG - MERCEDES BRANCH

PACO BRANCH
Commercial Motors Corp. Compound

Mercedes Ave., Pasig City
Tel. No.: 628-0197/0209/0201
Fax No.: 628-0211
Branch Head: Rosanna H. Malavega
QUIAPO BRANCH
Gen. Luna cor. Escoda St., Paco, Manila

Tel. No.: 526-6492; 536-6630/31/72
Fax No.: 536-6657
Branch Head: Susan V. Co
PACO - OTIS BRANCH
PASIG - SANTOLAN BRANCH
ROOSEVELT AVE. BRANCH
G/F Union Motor Corporation Bldg.

1760 Dra. Paz Guazon St.,Paco, Manila
Tel. No.: 561-6902; 561-6981; 564-2247
Fax No.: 561-6981
Branch Head: Ma. Victoria O. Rondilla
G/F Felmarc Business Center

Amang Rodriguez Ave., Santolan, Pasig City
Tel. No.: 646-0635; 682-3474; 682-3514
681-4575
Fax No.: 646-0514
Branch Head: Aida D. Cristobal
CBC Bldg., 293 Roosevelt Ave.

San Francisco Del Monte, Quezon City
Tel. No.: 371-5133 to 35; 410-2160
410-1957; 371-2766
Fax No.: 371-2765
Branch Head: Eileen M. Felipe
PASIG - SM SUPERCENTER BRANCH
SALCEDO VILLAGE - TORDESILLAS

BRANCH
216-220 Villalobos St., Quiapo, Manila

Tel. No.: 733-2052/59/61; 733-6282/86
Fax No.: 733-6282
Branch Head: Leslie C. So
PADRE FAURA BRANCH

G/F Regal Shopping Center, A. Mabini
cor. P. Faura Sts., Ermita, Manila
Tel. No.: 526-0586; 527-3202; 527-7865
Fax No.: 527-3202
Branch Head: Carmina P. Manimbo
PARAAQUE - DR. A. SANTOS AVE.

BRANCH
Unit 1 & 2 Kingsland Building, Dr. A. Santos Ave.
Sucat, Paraaque City
Tel. No.: 825-3201; 825-2990
825-1062; 820-0911
Fax No.: 825-3095
Branch Head: Aldrin S. Parco
G/F SM Supercenter Pasig, Frontera Drive

C-5 Ortigas, Pasig City
Tel. No.: 706-3207/3208/3209
Fax No.: 706-3208
Branch Head: Maria Norissa D. Mempin
PASO DE BLAS BRANCH

G/F CYT Bldg., No. 178 Paso de Blas
Valenzuela City
Tel. No.: 292-3215/3213/3216
Fax No.: 444-8850
Branch Head: Ma. Leticia G. Milan
PASONG TAMO - BAGTIKAN BRANCH

PARAAQUE - SUCAT BRANCH
MTF Building, Dr. A. Santos Ave.
cor. Kabesang Segundo St., Paraaque City
Tel. No.: 820-8951/52; 820-2044
825-2501
Fax No.: 825-9517
Branch Head: Alejandro I. Alvarez, Jr.
PASAY - LIBERTAD BRANCH

CBC Building, 184 Libertad St.
Antonio Arnaiz Ave., Pasay City
Tel. No.: 551-7159; 834-8978; 831-0306
831-0498
Fax No.: 551-7160
Branch Head: Michelle C. Ang
PASAY - ROXAS BLVD. BRANCH

GF Unit G-01 Antel Seaview Towers
2626 Roxas Blvd., Pasay City
Tel. No.: 551-9067/68/69; 833-5048
Fax No.: 551-1768
Branch Head: Ronaldo H. Francisco
G/F Prince Tower Condominium

14 Tordesillas St., Salcedo Village, Makati City
Tel. No.: 813-4901/32/33; 813-4944/52
Fax No.: 813-4933
Branch Head: Juliet B. Placido
G/F Trans-Phil House 1177 Chino Roces Ave.

cor. Bagtikan St., Makati City
Tel. No.: 403-4820; 403-4821
403-4822; 738-7591
Fax No.: 403-4821
Branch Head: Rose Marie Angeles Y. Oquendo
SALCEDO VILLAGE - VALERO BRANCH

G/F Valero Tower, 122 Valero St.
Salcedo Village, Makati City
Tel. No.: 892-7768/69; 812-9207
893-8188/96
Fax No.: 892-7769
Branch Head: Nellie S. Alar
SALES - RAON BRANCH

611 Sales St., Quiapo, Manila
Tel. No.: 734-5806; 734-7427; 734-6959
Fax No.: 734-6959
Branch Head: Elizabeth I. Trinidad
PASONG TAMO - CITYLAND BRANCH
SAN JUAN BRANCH
Units UG30-UG32 Cityland Pasong Tamo Tower

2210 Pasong Tamo St., Makati City
Tel. No.: 817-9337/47/51/60/82
Fax No.: 817-9351
Branch Head: Arnnie B. Alanano
17 F. Blumentritt St., San Juan, Metro Manila

Tel. No.: 724-8263; 726-4826
744-5616 to 18; 723-7333
Fax No.: 723-4998
Branch Head: Joel Kenward Y. Uy
PHILAM BRANCH
SHAW - HAIG BRANCH
8 East Lawin Drive, Philam Homes, QC

Tel. No.: 927-9841; 924-2872; 929-5734
Fax No.: 929-3115
Branch Head: April Jean P. Chiong
G/F First of Shaw Bldg., Shaw Blvd.

cor. Haig St., Mandaluyong City
Tel. No.: 534-1073; 534-0744; 718-0218
531-0795 (MCB)
Fax No.: 534-0641
Branch Head: Virginia T. Bernabe
CHINA BANK
U U
2009 ANNUAL REPORT
SHAW - PASIG BRANCH
SM FAIRVIEW BRANCH
TIMOG AVE. BRANCH
G/F RCC Center, No. 104

Shaw Boulevard, Pasig City
Tel. No.: 634-5018/19; 634-3343/44
747-7812; 634-3340
638-2751
Fax No.: 747-7812
Branch Head: Hermenegildo G. Cario
LGF, SM City Fairview

Quirino Ave. cor. Regalado Ave.
Fairview, Quezon City
Tel. No.: 417-2878; 939-3105
Fax No.: 418-8228
Branch Head: Ma. Nila B. Dujunco
G/F Prince Jun Condominium

42 Timog Ave., Q.C.
Tel. No.: 371-4523/24; 371-4503/06
416-7146
Fax No.: 371-4522
Branch Head: Luningning U. Lim
SM MALL OF ASIA BRANCH
TOMAS MORATO BRANCH
G/F Main Mall Arcade, SM Mall of Asia

Bay Blvd., Pasay City
Tel. No.: 556-0100/0102/0099
Fax No.: 556-0099
Branch Head: Charmaine V. Santos
229 T. Morato Ave cor Sct. Borromeo St.

Brgy. South Triangle, Quezon City
Tel. No.: 376-3456/3457/3458
Fax No.: 376-3452
Branch Head: Julius G. Dela Fuente
SM MEGAMALL BRANCH
TRINOMA BRANCH
LGF Building A, SM Megamall,

E. delos Santos Ave. cor. J. Vargas St.
Mandaluyong City
Tel. No.: 633-1611/12; 633-1788/89
638-7213 to15
Fax No.: 633-4971 or 633-1788
Branch Head: Edna A. Torralba
Unit P002, Level P1, Triangle North of Manila

North Ave. cor. EDSA, Quezon City
Tel. No.: 901-5570/5573
Fax No.: 901-5573
Branch Head: Maria Catleya C. Reyes
SHAW - SUMMIT ONE BRANCH

Unit 102 Summit One Ofce Tower
530 Shaw Boulevard Mandaluyong City
Tel. No.: 531-3970; 531-5736; 531-4058
531-1304; 533-8723; 533-4948
Fax No.: 531-9469
Branch Head: Victoria D. Advincula
SM CITY BICUTAN BRANCH

LGF, Bldg. B, SM City Bicutan
Doa Soledad Ave. cor. West Service Rd.
Paraaque City
Tel. No.: 821-0600/0700/0600; 777-9347
Fax No.: 821-0500
Branch Head: Kathlyn I. Abalos
SM SOUTHMALL BRANCH
SM CITY MARIKINA BRANCH
G/F SM City Marikina, Marcos Highway
Brgy. Calumpang, Marikina City
Tel. No.: 477-1845/46/47; 799-6105
Fax No.: 477-1847
Branch Head: Donna G. Del Rosario
UGF SM Southmall Alabang-Zapote Road

Talon 1, Almanza Las Pias City
Tel. No.: 806-6116/19; 806-3536; 806-3547
Fax No.: 806-3548
Branch Head: Joselito O. Suyat
Cyberzone Carpark Bldg., SM City North Ave.

cor. EDSA, Quezon City
Tel. No.: 456-6633; 454-8108/21; 925-4273
Fax No.: 927-2234
Branch Head: Edmund R. Vicente
SM CITY NORTH EDSA- ANNEX

BRANCH
UGF New Annex Building, SM City North EDSA
EDSA, Quezon City
Tel. No.: 441-1370/1372/1373
Fax No.: 441-1372
Branch Head: Anna Mercedes B. Flores
SM CITY SAN LAZARO BRANCH

UGF (Units 164-166) SM City San Lazaro
Felix Huertas St. cor. A.H. Lacson Extension
Sta. Cruz, Manila
Tel. No.: 742-1572; 742-2330; 493-7115
Fax No.: 732-7935
Branch Head: Jocelyn E. Tan
SM CITY TAYTAY BRANCH

Unit 147 Bldg. B, SM City Taytay
Manila East Road, Brgy. Dolores, Taytay, Rizal
Tel. No.: 286-5844; 286-5979
661-2276; 661-2277
Fax No.: 661-2235
Branch Head: Godofredo B. Ponciano, Jr.
Cluster Bldg. 1, Tutuban Center, C.M. Recto Ave.

cor. Dagupan St., Manila
Tel. No.: 251-0149/50; 253-0974/79
Fax No.: 251-0151
Branch Head: Andrew W. Kong
TUTUBAN PRIME BLOCK BRANCH
G/F R & S Bldg, Soler St., Manila

Tel. No.: 242-1041; 242-1674; 242-1685
Fax No.: 242-1041
Branch Head: Andrew W. Kong
Rivera Shophouse, Podium Area

Tutuban Center Prime Block
C.M. Recto Ave. cor. Rivera St., Manila
Tel. No.: 255-1414/15
Fax No.: 255-5441
Branch Head: Jefferson G. Ching
STO. CRISTO BRANCH
U.P. TECHNO HUB BRANCH
711-715 Sto. Cristo cor. Commercio Sts.

Binondo, Manila
Tel. No.: 242-4668/73; 242-5361; 241-1243
242-5449; 242-3670
Fax No.: 242-4672; 242-4761
Branch Head: Helen Y. Lee
U.P. AyalaLand Techno Hub

Commonwealth Ave. Quezon City
Tel. No.: 441-1331/1332/1334
Fax No.: 441-1334
Branch Head: Corina R. Sesdoyro
SOLER - 168 BRANCH

SM CITY NORTH EDSA BRANCH
TUTUBAN CENTER BRANCH
VALENZUELA BRANCH
T. ALONZO BRANCH
Abeleda Business Center, 908 T. Alonzo
cor. Espeleta Sts., Sta. Cruz, Manila
Tel. No.: 733-9581/82; 734-3231 to 33
Fax No.: 733-9582
Branch Head: Hermenia T. Que
CBC Building, McArthur Highway

cor. V. Cordero St., Marulas, Valenzuela City
Tel. No.: 293-8920; 293-6160
293-5088 to 90; 293-8919
Fax No.: 293-5091
Branch Head: Rosa L. Chiu
TAFT AVE. - QUIRINO BRANCH
VALENZUELA - GEN. LUIS BRANCH
2178 Taft Ave. near cor. Quirino Ave.

Malate, Manila
Tel. No.: 521-7825; 527-3285; 527-6747
Fax No.: 527-3285
Branch Head: Jorielyn B. Nuqui
AGT Building, 425 Gen. Luis St.

Paso de Blas, Valenzuela City
Tel. No.: 443-6160/61; 983-3861/62
Fax No.: 983-3861
Branch Head: Thelma S. Cabanban
CHINA BANK
U U
2009 ANNUAL REPORT
Branch Network
VISAYAS AVE. BRANCH
BALANGA CITY BRANCH
CAVITE - DASMARIAS BRANCH
CBC Building, Visayas Ave.

cor. Congressional Ave. Ext., Quezon City
Tel. No.: 454-0189; 925-2173; 455-4334/35
Fax No.: 925-2155
Branch Head: Artemio G. So
G/F Dilig Building, Don Manuel Banzon St.

Balanga City, Bataan
Tel. No.: (047) 237-9388/89; 791-1779
Fax No.: (047) 237-9388
Branch Head: John D. Calugay
G/F CBC Bldg., Gen. E. Aguinaldo Highway

Dasmarias, Cavite
Tel. No.: (046) 416-5036/39/40;
584-4083 (Manila direct line)
Fax No.: (046) 416-5036
Branch Head: Elvira M. Montesa
WEST AVE. BRANCH
BALIWAG BRANCH
82 West Ave., Quezon City

Tel. No.: 924-3131/3143/6363;920-6258
411-6010/6011; 928-3270
Fax No.: 924-6364
Branch Head: Ma. Cecilia D. So
Km. 51, Doa Remedios Trinidad (DRT) Highway

Baliwag, Bulacan
Tel. No.: (044) 766-1066/5257; 673-5338
Fax No.: (044) 766-5257
Branch Head: Oscar S. Alhambra, Jr.
XAVIERVILLE BRANCH
BATANGAS CITY BRANCH
65 Xavierville Ave., Loyola Heights, Quezon City

Tel. No.: 928-3607; 929-1265; 927-9826
Fax No.: 929-3343
Branch Head: Joel G. Samson
P. Burgos St., Batangas City

Tel. No.:
(043) 723-0953
TeleFax No.: (043) 402-9157
Branch Head: Erlan Antonio B. Olavere
PROVINCIAL BRANCHES
CABANATUAN CITY BRANCH
LUZON
ANGELES CITY BRANCH
CBC Building, 949 Henson St., Angeles City
Tel. No.: (045) 887-1549; 323-5343
887-1550/2291; 625-8660/61
Fax No.: (045) 625-8661
Branch Head: Renito R. Bognot
ANGELES CITY - MARQUEE MALL

BRANCH
G/F Marquee Mall, Angeles City, Pampanga
Tel. No.:
(045) 436-4013; 889-0975
TeleFax No.: (045) 304-0850
Branch Head: Yalda Y. Ocampo
Melencio cor. Sanciangco Sts.

Cabanatuan City
Tel. No.: (044) 600-4265
463-0935 to 36
Fax No.: (044) 463-0936
Branch Head: Juanito C. Santiago, Jr.
CABANATUAN
MAHARLIKA BRANCH
CBC Bldg. San Pablo St. cor. McArthur Highway

Angeles City
Tel. No.: (045) 323-5793; 887-6028; 625-9362
Fax No.: (045) 887-6029
Branch Head: Maria Josefa R. Nisce
CBC Building, Maharlika Highway

Cabanatuan City
Tel. No.: (044) 463-8586/87
463-7964; 600-3590
Fax No.: (044) 940-2395
Branch Head: Jocelyn C. Concepcion
G/F Juniper Bldg., A. Bonifacio Rd., Baguio City

Tel. No.: (074) 442-9581; 443-5908
443-8659 to 60; 442-9663
Fax No.: (074) 442-9663
Branch Head: Oscar S. Aquino
J.P. Rizal St., San Vicente, Calapan City

Oriental Mindoro
Tel. No.: (043) 288-8978/8508
441-0382
Fax No.: (043) 441-0382
Branch Head: Erlan Antonio B. Olavere
G/F Paladin Hotel, 136 Abanao Ext.

cor. Cario St., Baguio City
Tel. No.: (074) 424-4837; 424-4838
Fax No.: (074) 424-4838
Branch Head: Edward U. Catipon
G/F CBC Building, Gen Trias Drive

Rosario, Cavite
Tel. No.: (046) 437-0057 to 59
Fax No.: (046) 437-0057
Branch Head: Ma. Lorna A. Virata
DAGUPAN - PEREZ BRANCH

Siapno Building, Perez Boulevard, Dagupan City
Tel. No.: (075) 522-2562 to 64
Fax No.: (075) 522-8308
Branch Head: Josephine C. Dee
Carried Realty Bldg., 28 M.H. del Pilar St.

Dagupan City
Tel. No.: (075) 523-5606
515-8952; 515-8956
Fax No.: (075) 522-8929
Branch Head: Rommel M. Agacita
G/F Waltermart Center - Gapan, Maharlika

Highway, Brgy. Bayanihan, Gapan, Nueva Ecija
Tel. No.: (044) 486-0217
486-0434; 486-0695
Fax No.: (044) 486-0434
Branch Head: Edwin Q. Manuel, Jr.
LA TRINIDAD BRANCH
CBC Building, Paseo de Carmona
Brgy. Maduya, Carmona, Cavite
Tel. No.:
(046) 430-1969/1277/3568
TeleFax No.: 520-6735 (Manila direct line)
Branch Head: Edison B. Agarao
G/F SJV Bulasao Building

Km. 4 La Trinidad Benguet
Tel. No.: (074) 422-2065/2590; 309-1663
Fax No.: (074) 422-2065
Branch Head: Liza L. Serrano
LA UNION BRANCH
CAUAYAN CITY BRANCH
BAGUIO CITY - ABANAO BRANCH
CAVITE - ROSARIO BRANCH
GAPAN BRANCH
CARMONA BRANCH
BAGUIO CITY BRANCH
G/F CBC Bldg., Nueno Ave.

Tanzang Luma, Imus, Cavite
Tel. No.: (046) 970-8726/64
471-2637; 471-7094
Fax No.: (046) 471-2637
Branch Head: Noreen S. Puricacion
DAGUPAN - M.H. DEL PILAR BRANCH
CALAPAN CITY BRANCH

ANGELES - MCARTHUR HIGHWAY
BRANCH
CAVITE - IMUS BRANCH
G/F Prince Christopher Bldg.

Maharlika, Highway, Cauayan City, Isabela
Tel. No.: (078) 652-1849; 897-1338
Fax No.: (078) 652-1850
Branch Head: Medel C. Driz
CHINA BANK
U nU
Quezon Ave., National Highway

San Fernando, La Union
Tel. No.: (072) 607-8931/8932/8933/8934
Fax No.: (072) 607-8934
Branch Head: Mary Ann T. Chan
2009 ANNUAL REPORT
LAGUNA - CALAMBA BRANCH
PANGASINAN - URDANETA BRANCH
SM CITY PAMPANGA BRANCH
CBC Building, National Highway

Crossing, Calamba, Laguna
Tel. No.: (049) 545-7134 to 38
Fax No.: (049) 545-7138
Branch Head: Estela A. Liamson
G/F EF Square Bldg., McArthur Highway

Poblacion, Urdaneta City, Pangasinan
Tel. No.: (075) 568-3548 to 49
656-2022; 656-2618
Fax No.: (075) 568-3548
Branch Head: William D. Bigornia
Unit AX3 102, Building 4, SM City Pampanga

Mexico, Pampanga
Tel. No.: (045) 455-0304/0305/0306/0307
Fax No.: (045) 455-0307
Branch Head: Luz R. Santos
LAOAG CITY BRANCH

Liberato Abadilla St., Brgy 17
San Francisco, Laoag City
Tel. No.: (077) 772-1024/27
771-4688; 771-4417
Fax No.: (077) 772-1035
Branch Head: Mariano G. Garantoza, Jr.
SM CITY STA. ROSA BRANCH

SAN FERNANDO BRANCH
CBC Bldg., V. Tiomico St.
City of San Fernando, Pampanga
Tel. No.: (045) 961-3542/49; 963-5458 to 60
961-5651; 860-1925; 892-3211
Fax No.: (045) 961-8352
Branch Head: Rosario D. Yabut
LEGAZPI CITY BRANCH

G/F Emma Chan Bldg., F. Imperial St.
Legazpi City
Tel. No.: (052) 480-6048; 480-6519; 214-3077
Fax No.: 429-1813 (Manila direct line)
Branch Head: Alex A. Jacob
SAN FERNANDO - DOLORES BRANCH
LUCENA CITY BRANCH
SAN JOSE CITY BRANCH
233 Quezon Ave., Lucena City

Tel. No.: (042) 373-2317; 373-3872/80/87
660-7861
Fax No.: (042) 373-3879
Branch Head: Fernando T. Herrera
Maharlika Highway, Brgy. Malasin, San Jose City

Tel. No.: (044) 947-0353/54; 511-2898
Fax No.: (044) 947-0353
Branch Head: Edgardo M. Santos
CBC Bldg., McArthur Highway, Dolores

Tel. No.: (045) 963-3413 to 15; 860-1780/81
Fax No.: (045) 963-1014
Branch Head: Roberto P. Basilio
G/F SM City Marilao

Km. 21, Brgy. Ibayo, Marilao, Bulacan
Tel. No.: (044) 711-1803/1814
933-1156/1157
Fax No.: (044) 711-1814
Branch Head: Marites B. Go
MASBATE BRANCH
Domingo cor. Zurbito Sts., Masbate, Masbate
Tel. No.: (056) 333-2363/65
Fax No.: (056) 333-2363
Branch Head: Ernie C. Torrevillas
NAGA CITY BRANCH

Penafrancia cor. Panganiban St., Naga City
Tel. No.: (054) 472-1359
472-1358; 473-7920
Branch Head: Perfecto S. Real
PANGASINAN - ALAMINOS CITY

BRANCH
Marcos Ave., Brgy. Palamis
Alaminos City, Pangasinan
Tel. No.: (075) 551-3859; 654-0286
Fax No.: (075) 654-0296
Branch Head: Edwin D. Viado
SOLANO BRANCH
National Highway, Brgy. Quirino
Solano, Nueva Vizcaya
Tel. No.: (078) 326-6559/60/61
Fax No.: (078) 326-6561
Branch Head: Adeluiso L. Cabugos
SORSOGON BRANCH
CBC Bldg., Ramon Magsaysay Ave.
Sorsogon City, Sorsogon
Tel. No.: (056) 211-1610; 421-5105
Branch Head: Arthur B. Falcotelo
SUBIC BAY FREEPORT ZONE BRANCH

SAN PABLO CITY BRANCH
MARILAO BRANCH
G/F SM City Sta. Rosa, Bo. Tagapo

Sta. Rosa, Laguna
Tel. No.: (049) 534-4640/4813
Fax No.: 901-1632 (Manila Line direct)
Branch Head: Christopher C. Mantillas
M. Paulino St., San Pablo City

Tel. No.: (049) 562-5481 to 84
Fax No.: (049) 562-5485
Branch Head: Oscar V. Villavicencio
CBC Building., Subic Bay Gateway Park

Rizal Highway, Subic Bay Freeport Zone
Tel. No.: (047) 252-1568
252-1575; 252-1591
Fax No.: (047) 252-1575
Branch Head: Renato S. Cunanan
SANTIAGO CITY
Navarro Bldg., Maharlika Highway near
cor. Bayaua St., Santiago City, Isabela
Tel. No.: (078) 682-7024 to 26
Fax No.: (078) 682-7223
Branch Head: Adeluiso L. Cabugos
TABACO CITY BRANCH

Ziga Ave. cor. Berces St.
Tabaco City, Albay
Tel. No.: (052) 487-7150; 830-4178
Branch Head: Katherine Y. Barra
SM CITY BACOOR BRANCH

LGF SM City Bacoor, Tirona Highway cor.
Aguinaldo Highway, Bacoor, Cavite
Tel. No.: (046) 417-0572/0746/0623/0645
Fax No.: (046) 417-0583
Branch Head: Nycette O. San Diego
TARLAC BRANCH
CBC Building, Panganiban near cor.
F. Tanedo St., Tarlac City, Tarlac
Tel. No.: (045) 982-7771 to 75
Fax No.: (045) 982-7772
Branch Head: Perla S. Aquino
SM CITY CLARK BRANCH

G/F (Units 172-173) SM City Clark, M. Roxas St.
CSEZ, Angeles City, Pampanga
Tel. No.: (045) 499-0252 to 54
Fax No.: (045) 499-0254
Branch Head: Pablito P. Flores
TUGUEGARAO CITY BRANCH

A. Bonifacio St., Tuguegarao, Cagayan
Tel. No.: (078) 844-0175; 844-0831
846-1709
Fax No.: (078) 844-0836
Branch Head: Shirly Leocel A. Narag
SM CITY LIPA BRANCH

G/F (Units 1111-1113) SM City Lipa, Ayala
Highway, Brgy. Maraouy, Lipa City, Batangas
Tel. No.: (043) 784-0212; 784-0213
Fax No.: (043) 784-0212
Branch Head: Jose L. Nario, Jr.
CHINA BANK
U U
2009 ANNUAL REPORT
Branch Network
PROVINCIAL BRANCHES
VISAYAS
BACOLOD - ARANETA BRANCH
CBC Building, Araneta cor.
San Sebastian Sts., Bacolod City
Tel. No.: (034) 435-0647/48; 433-3818/19
433-7152/53; 709-1618
Fax No.: (034) 433-7153
Branch Head: Michelle Loreilei R. Gayoma
BACOLOD - NORTH DRIVE BRANCH

Anesa Bldg., B.S. Aquino Drive, Bacolod City
Tel. No.: (034) 435-0063 to 65; 709-1658
Fax No.: (034) 435-0065
Branch Head: Romulo F. Lopez
BAYBAY BRANCH
Magsaysay Ave., Baybay, Leyte
Tel. No.: (053) 335-2899/98; 563-9228
Fax No.: (053) 563-9228
Branch Head: Jose Alvin P. Sumalinog
BORONGAN BRANCH
Balud II, Poblacion, Borongan, Eastern Samar
Tel. No.: (055) 560-9948; 560-9938; 261-5888
Fax No.: (055) 560 9938
Branch Head: Paul C. Oliva
CATARMAN BRANCH
Cor. Rizal & Quirino Sts., Jose P. Rizal St.
Catarman, Northern, Samar
Tel. No.: (055)251-8802/8821;500-9921
Fax No.: (055) 500-9921
Branch Head: Victorino T. Caparroso, Jr.
CATBALOGAN BRANCH
CBC Bldg. Del Rosario St.
cor. Taft Ave., Catbalogan City, Samar
Tel. No.: (055) 251-2897/98
Fax No.: (055) 543-8279
Branch Head: Froilan P. Pomida
CEBU - CONSOLACION BRANCH
CEBU - SM CITY BRANCH
Fooda Saversmart Corp., Brgy. Poblacion Oriental

National Highway, Consolacion, Cebu
Tel. No.: (032) 236-1022; 423-9253
Fax No.: (032) 423-9253
Branch Head: Raymond T. Chiu
Upper G/F SM City Cebu, Juan Luna

cor. A. Soriano Ave., Cebu City
Tel. No.: (032) 232-0754/55; 231-9140
412-9699
Fax No.: (032) 232-144 8
Branch Head: Alex M. Campilan
CEBU - F. RAMOS BRANCH

F. Ramos St., Cebu City
Tel. No.: (032) 253-9463; 254-4867; 412-5858
Fax No.: (032) 253-9461
Branch Head: Isabel D. Yap
CEBU - GUADALUPE BRANCH

CBC Building, M. Velez St.
cor. V. Rama Ave., Guadalupe, Cebu City
Tel. No.: (032) 254-7964; 254-8495; 416-5988
Fax No.: (032) 254-1916
Branch Head: Angie G. Divinagracia
CEBU - LAHUG BRANCH

JY Square Mall, 1 Salinas Drive, Lahug, Cebu City
Tel. No.: (032) 417-2122; 233-0977; 234-2062
Fax No.:: (032) 234-2062
Branch Head: Sylvia S. Escalante
CEBU - LAPU LAPU BRANCH

G/F Coast Pacic Suites
Pres. Quezon National Highway
Pusok, Lapu-Lapu City, Cebu
Tel. No.: (032) 340-2098; 495-3160
Fax No.: (032) 340-2099
Branch Head: Mary Faith R. Alvez
CEBU - MAGALLANES BRANCH

CBC Bldg., Magallanes cor. Jakosalem Sts.
Cebu City
Tel. No.: (032) 255-0022/23/25/28
253-0348;255-6093;255-0266
412-1877
Fax No.: (032) 255-0026
Branch Head: Grace Y. Ho
CEBU - MANDAUE BRANCH
CEBU - SUBANGDAKU BRANCH

G/F A.D. Gothong I.T. Center
Subangdaku, Mandaue City, Cebu
Tel. No.: (032) 344-6561; 422-3664; 344-6621
Fax No.: (032) 344-6621
Branch Head: Sharon Rose L. Onrejas
CEBU - TALISAY BRANCH

CBC Bldg., 1055 Cebu South National Road
Bulacao, Talisay City, Cebu
Tel. No.: (032) 272-3342/48; 491-8200
Fax No.: (032) 272-3346
Branch Head: Rosie T. Faytone
DUMAGUETE CITY BRANCH

CBC Bldg., Real St. Dumaguete City
Negros Oriental
Tel. No.: (035) 422-8058; 225-5442; 225-5441
225-4284; 225-5460
Fax No.: (035) 422-5442
Branch Head: Warren Noel M. Del Valle
ILOILO - IZNART BRANCH

G/F John A. Tan Bldg., Iznart St., Iloilo City
Tel. No.: (033) 337-9477
509-9868; 300-0644
Fax No.: (033) 337-9566
Branch Head: Marjorie C. Mangilin
ILOILO - MABINI BRANCH

A. Mabini St., Iloilo City
Tel. No.: (033) 335-0295; 335-0370; 509-0599
Fax No.: (033) 335-0370
Branch Head: Ma. Teresa O. Lao
SV Cabahug Building 155-B SB Cabahug St.

Brgy. Centro, Mandaue City, Cebu
Tel. No.:
(032) 346-5636/37; 346-2083
344-4335; 422-8188
TeleFax No.: (032) 346-2083
Branch Head: Victor P. Mayol
ILOILO - RIZAL BRANCH
CEBU - MANDAUE CABANCALAN

BRANCH
KALIBO BRANCH
CEBU - BANILAD BRANCH

CBC Bldg., AS Fortuna St., Banilad, Cebu City
Tel. No.: (032) 346-5870/81; 416-1001
Fax No.: (032) 344-0087
Branch Head: Jouzl Marie C. Roa
M.L. Quezon St., Cabancalan, Mandaue City,Cebu

Tel. No.:
(032) 505-9908
TeleFax No.: (032) 421-1364
Branch Head: Ruel G. Umbay
CEBU - CARCAR BRANCH
CEBU - MANDAUE NORTH ROAD

BRANCH
CEBU BUSINESS CENTER

CBC Bldg., Samar Loop cor. Panay Road
Cebu Business Park, Cebu City
Tel. No.: (032) 238-1437 to 1439; 415-5880
Fax No.: (032) 238-1439
Branch Head: Jose L. Osmea, Jr.
Dr. Jose Rizal St., Poblacion I, Carcar, Cebu

Tel. No.: (032)487-8103; 487-8209
Fax No.: (032) 487-8103
Branch Head: Zephyrus C. Celis
G/F Units G1-G3, Basak Commercial Building

(Kel-2) Basak, Mandaue City, Cebu
Tel. No.:
(032) 345-8861; 345-8862
TeleFax No.: (032) 420-6767
Branch Head: Annie Y. Go Thong
CHINA BANK
U U
CBC Building, Rizal cor. Gomez St.

Brgy. Ortiz, Iloilo City
Tel. No.: (033) 336-0947; 338-2136; 509-8838
Fax No.: (033) 338-2144
Branch Head: Diosdado J. Galanto
Waldolf Garcia Building, Osmea Ave.

Kalibo, Aklan
Tel. No.: (036) 500-8088; 500-8188
Fax No.: (036) 500-8088
Branch Head: Marylen T. Gerardo
ORMOC CITY BRANCH

CBC Building, Real cor. Lopez Jaena Sts.
Ormoc City, Leyte
Tel. No.: (053) 255-3651 to 53
Fax No.: (053) 561-8348
Branch Head: Casmiro L. Cortes
2009 ANNUAL REPORT
PUERTO PRINCESA CITY BRANCH

Malvar St. near cor. Valencia St.
Puerto Princesa City, Palawan
Tel. No.: (048) 434-9891-93
Fax No.: (048) 434-9892
Branch Head: Joselito V. Cadorna
ROXAS CITY BRANCH

1063 Roxas Ave. cor. Bayot Drive
Roxas City, Capiz
Tel. No.: (036) 621-3203; 621-1780; 522-5775
Fax No.: (036) 621-3203
Branch Head: Jose B. Aligno, Jr.
TACLOBAN CITY BRANCH

Carlos Chan Building
P. Zamora St., Tacloban City
Tel. No.: (053) 325-7706 to 08; 523-7700/7800
Fax No.: (053) 523-7700
Branch Head: Felina G. Reyes
CAGAYAN DE ORO - LAPASAN

BRANCH
CBC Building, Claro M. Recto Ave.
Lapasan, Cagayan de Oro City
Tel. No.: (08822) 722-240; 724-540; 726-242
(088) 856-1325/1326
Fax No.: (088) 856-1325/1326
Branch Head: Ma. Carminda G. Urot
COTABATO CITY BRANCH

76 S.K. Pendatun Ave., Cotabato City
Maguindanao
Tel. No.: (064) 421-4685/4653
Fax No.: (064) 421-4686
Branch Head: Carlos C. Tan, Jr.
DAVAO - BAJADA BRANCH

Km. 3, J.P. Laurel Ave., Bajada, Davao City
Tel. No.: (082) 221-0184; 221-0319
Fax No.: (082) 221-0568
Branch Head: Samuel L. Reymundo
TAGBILARAN CITY BRANCH

G/F Melrose Bldg., Carlos P. Garcia Ave.
Tagbilaran City, Bohol
Tel. No.: (038) 501-0688; 501-0677 411-2484
Fax No.: (038) 501-0677
Branch Head: Rodney A. Lumuthang
DIPOLOG CITY BRANCH

CBC Building, Gen Luna cor. Gonzales St.
Dipolog City
Tel. No.: (065) 212-6768 to 69; 908-2008
Fax No.: (065) 212-6769
Branch Head: Arnulfo H. Roldan
GEN. SANTOS CITY BRANCH

CBC Bldg., I. Santiago Blvd., Gen. Santos City
Tel. No.: (083) 552-2300; 552-8288
Fax No.: (083) 553-1618
Branch Head: Helen Grace B. Lachica
ILIGAN CITY BRANCH

Lai Building, Quezon Ave. Extension
Pala-o, Iligan City
Tel. No.: (063) 221-5477/79; 492-3009
221-3009
Fax No.: (063) 492-301
Branch Head: Ma. Lilibeth G. Arcillas
KIDAPAWAN CITY BRANCH

DAVAO - BUHANGIN BRANCH
Buhangin Road, Davao City
Tel. No.: (082) 300-8335; 227-9764; 221-5970
Fax No.: (082) 221-5970
Branch Head: Roberto A. Alag
G/F EVA Building, Quezon Blvd.

cor. Tomas Claudio St., National Highway
Kidapawan City
Tel. No.: (064) 278-3509; 278-3510
Fax No.: (064) 278-3509
Branch Head: Wilbert R. Baus
DAVAO - LANANG BRANCH
PROVINCIAL BRANCHES
MINDANAO
Insular Village I, Km. 8, Lanang, Davao City

Tel. No.: (082)300-1892; 234-7166;234-7165
Fax No.: (082)300-1892
Branch Head: Janice B. Tan
BUTUAN CITY BRANCH

CBC Building J.C. Aquino Ave., Butuan City
Tel. No.: (085) 341-5159; 341-7445
(085) 815-3454/55; 225-2081
Fax No.: (085) 815-3455
Branch Head: Sheelah A. Kho
CAGAYAN DE ORO - CARMEN BRANCH

G/F GT Realty Building, Max Suniel St.
cor. Yakal St., Carmen, Cagayan de Oro City
Tel. No.: (08822) 723-091; 724-372
(088) 858-3902/03
Fax No.: (088) 858-3903/ (08822) 724-372
Branch Head: James M. Bomediano
CAGAYAN DE ORO - DIVISORIA

BRANCH
RN Abejuela St., South Divisoria
Cagayan de Oro City
Tel. No.: (08822) 722-641; (088) 857-5759
Fax
(088) 857-4200
Branch Head: Agnes O. Adviento
Gomez cor. Burgos Sts., Ozamiz City

Tel. No.: (088) 521-2658 to 60
Fax No.: (088) 521-2659
Branch Head: Ariel F. Ilagan
DAVAO - MATINA BRANCH

Km. 4 McArthur Highway, Matina, Davao City
Tel. No.: (082) 297-4288; 297-4455
297-5880/81
Fax No.: (082) 297-5880
Branch Head: Petronila G. Narvaez
CAGAYAN DE ORO - BORJA BRANCH

J. R. Borja St., Cagayan de Oro City
Tel. No.: (08822) 724-832/33; 726-076
(088) 857-3742
Fax No.: (088) 857-2212
Branch Head: Janet G. Tan
OZAMIZ CITY BRANCH
PAGADIAN CITY BRANCH

Marasigan Building, F.S. Pajares Ave.
Pagadian City
Tel. No.: (062) 215-2781/82; 925-1116
Fax No.: (062) 214-3877
Branch Head: Dennis T. Wong Yat
DAVAO - RECTO BRANCH

CBC Bldg., C.M. Recto Ave.
cor. J. Rizal St., Davao City
Tel. No.: (082) 221-4481/7028/6021/6921/4163
226-3851; 226-2103
Fax No.: (082) 221-8814
Branch Head: Jesus B. Luna, Jr.
VALENCIA BRANCH
DAVAO - STA. ANA BRANCH
ZAMBOANGA CITY BRANCH
R. Magsaysay Ave. cor. F. Bangoy St.

Sta. Ana District, Davao City
Tel. No.: (082) 227-9501/51; 227-9601
221-1054/55; 221-6672
Fax No.: (082) 226-4902
Branch Head: Felipe D. Lim
CBC Building, Gov. Lim Ave. cor.

Nuez St., Zamboanga City
Tel. No.: (062) 991-2978/79; 991-1266
Fax No.: (062) 991-1266
Branch Head: Jaime G. Asuncion
A. Mabini St., Valencia, Bukidnon

Tel. No.: (088) 828-2048/49; 222-2356
222-2417
Fax No.: (088) 828-2048
Branch Head: Gilmar L. Villaruel
ZAMBOANGA - GUIWAN BRANCH

DAVAO - TAGUM BRANCH
153 Pioneer Ave., Tagum, Davao del Norte
Tel. No.: (084) 218-2601/02; 400-2289/90
Fax No.: (084) 400-2289
Branch Head: Ernesto A. Santiago, Jr.
CHINA BANK
U U
G/F Yangs Tower, M.C. Lobregat National

Highway, Guiwan, Zamboanga City
Tel. No.: (062) 984-1751; 984-1754
Fax No.: (062) 984-1751
Branch Head: Alexander B. Lao
2009 ANNUAL REPORT
Off - Branch ATM Locations
GLORIETTA 4 - BASEMENT 1
ST. LUKES - THE FORT
E. RODRIGUEZ COMPLEX
MANILA
Basement 1, Glorietta 4
Makati City
Basement, St. Lukes Medical

Center, 5th Ave., The Fort
Taguig City
E. Rodriguez Complex
Victoria Ave. cor. E. Rodriguez Ave.
Brgy. Marianas, Quezon City
168 MALL 1
GLORIETTA 5
THE FORT
FARMERS MARKET
1/F Bonifacio Technology Center,

31st St. cor. 2nd Ave.
Bonifacio Global City, Taguig City
ATM-4 Farmers Market

Araneta Center, Quezon City
METRO MANILA
3/F Food Court, 168 Mall

Sta. Elena St., Binondo, Manila
G/F, Glorietta 5
Ayala Center, Makati City
168 MALL 2
GREENBELT 3
GATEWAY MALL
2/F 168 Shopping Mall

Sta. Elena St., Binondo, Manila
Greenbelt 3, Makati Ave.

Drop-off Area, Makati City
CHIANG-KAI-SHEK
PEOPLE SUPPORT CENTER
Chiang Kai Shek College

1274 P. Algue, Manila
ROBINSONS PLACE
MANILA
G/F Padre Faura Entrance
Robinsons Place Manila
Pedro Gil cor. Adriatico St.
Ermita, Manila
SM MANILA
ATM-3 UG/F (Main Entrance
Arroceros Side), SM City Manila
ST. JUDE COLLEGE

Dimasalang St., cor. Don
Quijote St., Sampaloc, Manila
SAN JUAN
G/F PeopleSupport Center
Ayala Ave. cor.
Sen. Gil Puyat Ave., Makati City
ROCKWELL
P1 - CONCOURSE
QUEZON CITY
EDSA, Quezon City
SOUTHGATE MALL
ALI MALL 1
EDSA, Quezon City
EDSA cor. Pasong Tamo Ext.

Makati City
ATM-1 Upper G/F Ali Mall

P. Tuazon Boulevard
Araneta Center, Quezon City
NOVA SQUARE
MRT - NORTH AVE. STATION
THE A VENUE
G/F Valdez Site, The A Venue
7829 Makati Ave., Makati City
WALTERMART - MAKATI 1
MAKATI CITY
WALTERMART - MAKATI 2
2/F, Cash & Carry Mall

(located bet. South Super
Highway & Filmore) near
Cor. Buendia, Makati City
CHINA BANK
ONLINE CENTER
Starbucks, China Bank Building
8745 Paseo de Roxas
Cor. Villar St. Makati City
DASMARIAS VILLAGE
ASSOCIATION OFFICE
1417 Campanilla St.
Dasmarias Village
Makati City
GLORIETTA 4
Glorietta 4 (Between Tequilla
Joes and Banana Leaf)
Makati City
ATM-4, 3/F Landmark Trinoma

EDSA cor. Mindanao Ave.
Extension Pagasa, Quezon City
MRT - CUBAO STATION
G/F Times Plaza, T.M. Kalaw

Cor. Gen. Luna St., Manila
CASH & CARRY
Main Entrance, Greenhills

Theater Mall, San Juan
Metro Manila
LANDMARK TRINOMA
G/F Power Plant Mall

Makati City
G/F Waltermart Makati

(near Mercury Drug)
790 Chino Roces Ave.
cor. Antonio Arnaiz, Makati City
TAFT - U.N.
GREENHILLS
THEATER MALL
Booth 4, Level 2 Gateway Mall

Cubao, Quezon City
3/F, Waltermart Center Makati

790 Chino Roces cor. Antonio
Arnaiz, Makati City
ALI MALL 2
Lower G/F, Times Square
Entrance, Ali Mall
P. Tuazon Blvd., Araneta Center
Quezon City
ATENEO DE MANILA
UNIVERSITY
G/F Kostka Hall
Ateneo De Manila University
Katipunan Ave., Loyola Heights
Quezon City
G/F ATM-1 (Fronting Adidas)

Eastwood City Walk Phase 2
Eastwood City Cyberpark
E. Rodriguez, Jr. Avenue (C5),
Bagumbayan, Libis, Quezon City
MARKET! MARKET! 1
Market! Market!
Bonifacio Global City
Taguig, Metro Manila
EASTWOOD CYBERMALL
2/F Eastwood CyberMall
MARKET! MARKET! 2
2/F, Market! Market!
EASTWOOD MALL
MARKET! MARKET! 3
G/F ATM Center in Fiesta Market
Market! Market!
CHINA BANK
PUREGOLD - E. RODRIGUEZ
ATM 1 - Cosco Building
E. Rodriguez Ave. cor.
G. Araneta Ave., Quezon City
SHOP AND RIDE

248 Gen. Luis St.
SM CUBAO
EASTWOOD CITY WALK 2
TAGUIG
G/F Nova Square

689 Quirino Highway cor. P. Dela Cruz
Brgy. San Bartolome
Level 1 ATM-2 Phase 2

Eastwood Mall
U U
2009 ANNUAL REPORT
Times Square Ave.

Araneta Center, Cubao
Quezon City
SM FAIRVIEW
SM City Fairview, Quirino Ave.
cor. Regalado Ave.
Fairview, Quezon City
SM NORTH EDSA
Pedestrian Walk
Jeepney Terminal
SM North EDSA, Makati City
TRINOMA 1
Level 1, Triangle North of Manila
(near Landmark and Chowking)
North Ave. cor. EDSA
Quezon City
TRINOMA 2
Level 1, Triangle North of Manila
(near X Boutique) North Ave.
cor. EDSA, Quezon City
TRINOMA MCDO
Level 1 (near concierge
facing Bench store)
North Ave. cor. EDSA
Quezon City
WALTERMART
NORTH EDSA
Waltermart Bldg.
EDSA, Quezon City
ZABARTE TOWN CENTER

588 Camarin Road
cor. Zabarte Road
North Kalookan City
KALOOKAN CITY
ROBINSONS GALLERIA 2
CAGAYAN VALLEY
JACKMAN EMPORIUM
L1-181 Robinsons Galleria

EDSA cor. Ortigas Ave.
Pasig City
MARITON GROCERY
Jackman Emporium Department

Store Building (beside LRT
Station and Gotesco Grand
Central)
Grace Park, Kalookan City
TIENDESITAS
Frontera Verde, Ortigas Ave.
cor. C-5, Pasig City
LAGUNA
VICTORY CENTRAL MALL
G/F ATM-2, (below escalator)
717 Old Victory Compound
Rizal Ave., Monumento
Kalookan City
MUNTINLUPA CITY
CALTEX - SLEX 1
ALABANG MALL
South Luzon Expressway

(Northbound), Brgy. San Antonio
San Pedro, Laguna
Alabang Town Center

Alabang - Zapote Road
Muntinlupa City
MANDALUYONG CITY
JGC ALABANG
Cherry Foodarama
Shaw Boulevard
Mandaluyong City
JGC Phils. Building

Prime St. Madrigal Business
Park, Phase III, Ayala Alabang
Muntinlupa City
CHERRY FOODARAMA
PASAY CITY
MRT - BONI STATION
SM MUNTINLUPA
METRO POINT MALL
EDSA, Mandaluyong City
3/F, Metro Point Mall

EDSA cor. Taft Ave., Pasay City
MRT - SHAW STATION
G/F ATM-2 (beside rear

entrance), Brgy. Tunasan
National Road, SM Muntinlupa
Muntinlupa City
EDSA, Mandaluyong City
ONE E-COM CENTER

G/F One E-Com Center
Harbor Drive
SM Mall of Asia Complex
Pasay City
SM MEGAMALL BLDG. B
G/F SM Hypermarket
SM Mall of Asia, Pasay City
WACK-WACK GOLF
AND COUNTRY CLUB
SM MALL OF ASIA
FOODCOURT
Main Lobby Clubhouse

Wack-Wack Golf and
Country Club, Shaw Blvd.
Mandaluyong City
SM MALL OF ASIA
SOUTH PARKING
G/F South Parking, SM Mall of
Asia, (between Gonuts Donuts
& Rudy Project), Bay Boulevard
Pasay City
SAVERS CENTER
G/F, Right Side of Main
Entrance along EDSA near
cor. Taft Ave., Pasay City
PAVILION MALL
G/F Building A, Pavilion Mall
Km. 35, Brgy. San Antonio
Bian, Laguna
PETRON SLEX
Petron Express Center 3
South Luzon Expressway
San Pedro, Laguna
TARGET MALL 1
G/F Sta. Rosa Commercial
Complex (near Star Search)
Brgy. Balibago, Sta. Rosa
Laguna
MALABON
Level 2, Building B
SM Megamall, EDSA
cor. Julia Vargas St.
Mandaluyong City
TARGET MALL 2
MALABON CITISQUARE
Malabon Citisquare, C4 Road
cor. Dagat-Dagatan Ave.
Malabon City
SM HYPERMARKET
2/F Main Mall, SM Mall of Asia

(between Timex & Daves Fun
House), Bay Boulevard
Pasay City
Mariton Grocery
Buntun, Tuguegarao City
Cagayan Valley
ATM-4, Sta. Rosa Commercial

Complex (canopy area)
Brgy. Balibago, Sta. Rosa
Laguna
WALTERMART - CALAMBA
LAS PIAS
SM SOUTHMALL
G/F Waltermart Calamba

Real St., Brgy. Real
Calamba City, Laguna
Alabang - Zapote Road

Bo. Almanza, Las Pias City
WALTERMART - STA. ROSA 1
PASIG CITY
MEDICAL CITY
LUZON
G/F Medical City, Ortigas Ave.

Pasig City
BULACAN
Upper G/F Waltermart Center

(mall entrance)
Sta. Rosa National Highway
San Lorenzo Village, Balibago Road
Sta. Rosa, Laguna
METROWALK
SM CITY BALIWAG
WALTERMART - STA. ROSA 2
ATM-1 Building C
G/F Metrowalk Commercial
Complex, Meralco Ave.
Pasig City
1/F near Hypermarket SM City

Baliwag, DTR Highway
Brgy. Pagala, Baliwag, Bulacan
Upper G/F Waltermart Center

(between Goldilocks and mall exit)
Sta. Rosa, San Lorenzo Village
Balibago Road, Sta. Rosa, Laguna
SM CITY MARILAO
ROBINSONS GALLERIA 1
L1-181 Robinsons Galleria
EDSA cor. Ortigas Ave.
Pasig City
CHINA BANK
ATM-1 SM City Marilao

Marilao, Bulacan
U U
2009 ANNUAL REPORT
Off - Branch ATM Locations
LA UNION
LORMA HOSPITAL
Lorma Hospital
San Fernando City, La Union
UNION CHRISTIAN
COLLEGE
Widdoes St., Brgy. II
San Fernando City, La Union
SM CITY PAMPANGA
BENGUET
SM SUPERCENTER MOLINO
ATM-2, SM City (main entrance

beside covered walk)
Barangay San Jose
San Fernando, Pampanga
NOTRE DAME DE
CHARTRES HOSPITAL
SM Supercenter Molino
Brgy. Molino 4, Molino Road
Bacoor, Cavite
SM CITY CLARK
SM BAGUIO
NUEVA ECIJA
ATM-1 SM City Clark

(fronting transport terminal)
M. Roxas St., CSEZ
Angeles City, Pampanga
Luneta Hill, Upper Session Road

cor. Governor Park Road
Baguio City, Benguet
GOOD SAMARITAN
HOSPITAL
25 Gen. Luna Road, Baguio City
Good Samaritan Compound

Burgos Ave., Cabanatuan City
PAMPANGA
CAVITE
RIZAL
WESLEYAN UNIVERSITY
268 MALL
268 Mall CK Building
Plaridel Extension, Sto. Rosario
SM CITY TAYTAY
ADVENTIST UNIVERSITY
OF THE PHILIPPINES
2/F Building A, SM City Taytay

Manila East Road, Brgy. Dolores
Taytay, Rizal
Adventist University of the

Philippines, Puting Kahoy
Silang, Sta. Rosa, Cavite City
Wesleyan University of the

Philippines, Mabini Extension
Cabanatuan City
TARLAC
ANGELES UNIVERSITY
FOUNDATION
DLSU - DASMARIAS
Angeles University Foundation

McArthur Highway, Angeles
Pampanga
PANGASINAN
HOLY ANGEL UNIVERSITY
G/F Magic Mall (near ITTI Shoes

entrance B), Alexander St.
Poblacion, Urdaneta City
Pangasinan
DLSU - HEALTH
SCIENCE CAMPUS
MAGIC STARMALL 2
De La Salle University Health

Campus, Inc., Congressional
Road, Dasmarias, Cavite
Upper G/F, Magic Star Mall

Romulo Boulevard
Barangay Cut-cut1, Tarlac City
ALBAY
LOTUS CENTRAL MALL
PACIFIC MALL
G/F Lotus Central Mall

Nueno Ave., Imus, Cavite
G/F Holy Angel University

Students Center, Sto. Rosario St.
College of Engineering
De La Salle University
Dasmarias, Cavite
MAGIC MALL
- PANGASINAN
MAGIC STARMALL 1
Upper G/F, Magic Star Mall
Romulo Boulevard
Barangay Cut-cut1, Tarlac City
JENRA MALL
JENRA Grand Mall
MARQUEE MALL 1
G/F Marquee Mall (Activity
Center), Don Bonifacio Rd.
Landco Business Park

F. Imperial St. cor.
Circumferential Road
Legazpi City
MARQUEE MALL 2
VISAYAS
NEGROS OCCIDENTAL
ORCHARD GOLF AND

COUNTRY CLUB
Gate 2, The Orchard Golf and
Country Club Inc.
Aguinaldo Highway
Dasmarias, Cavite
LOPUES EAST CENTRE

Lopues East Centre
Burgos St., cor. Carlos Hilado
National Highway, Bacolod City
G/F Marquee Mall (near Alfresco

Dining and T.G.I.F.)
Don Bonifacio Road
BATANGAS
MARQUEE MALL 3
San Roque, Bauan, Batangas
G/F (near emergency room)

Tamsui Ave., Bayan Luma
Imus, Cavite
2/F Marquee Mall

Don Bonifacio Road
SM CITY BATANGAS
SM BACOOR
CEBU
ATM-1 SM City Batangas

Pallocan West, Batangas City
SM City, Tirona Highway

cor. Aguinaldo Highway
Bacoor, Cavite
CEBU DOCTORS HOSPITAL
SM CITY BACOLOD
ATLANTIC, GULF AND
PACIFIC COMPANY OF
MANILA, INC.
NEPO MALL ANGELES

Nepo Mall Angeles
Doa Teresa Ave.
cor. St. Joseph St., Nepo Mart
Complex, Angeles City
OUR LADY OF THE PILLAR
G/F Building A, ATM-3

SM City Bacolod
Reclamation Area, Bacolod City
Osmea Blvd., Cebu City
SM CITY LIPA
ATM-2 SM City Lipa
(near transport terminal)
Ayala Highway, Lipa City
CHINA BANK
SM CITY DASMARIAS
ATM-2 SM City Dasmarias
Cavite City
U {U
2009 ANNUAL REPORT
CEBU DOCTORS
UNIVERSITY
1 Potenciano Larrazabal Ave.
North Reclamation Area
Mandaue City
GAISANO MALL - TALISAY
BOHOL
SM CITY CAGAYAN DE ORO
G/F Gaisano Fiesta Mall

Tabunok Talisay, Cebu City
UNIVERSITY OF BOHOL
ATM Center-2, SM City

(main entrance) Cagayan de Oro
University of Bohol
M. Clara St., Tagbilaran City
Bohol
XAVIER UNIVERSITY
CAGAYAN DE ORO
MINDANAO
G/F Library Annex

Xavier University, Corrales Ave.
Cagayan de Oro City
LA NUEVA MINGLANILLA
La Nueva Supermarket
Poblacion, Minglanilla
Cebu City
LA NUEVA SUPERMART
La Nueva Supermart, Inc.
G.Y. Dela Serna St.
Lapu-Lapu City, Cebu
DAVAO
LAPU-LAPU CITY
Gaisano Mactan Mall
Pusok, Lapu-Lapu City, Cebu
Gaisano Mall of Davao

J.P. Laurel Ave.
Bajada, Davao City
MACTAN MARINA MALL
SM DAVAO
G/F, Mactan Marina Mall

MEPZ1, Lapu-Lapu City, Cebu
ATM Center-1, SM City Davao

Quimpo Boulevard, Ecoland
Subdivision, Barangay Matina
Davao City
SKYRISE REALTY
Skyrise Realty Development
Corporation, Lobby G/F Skyrise
IT Building, Gorordo Ave.
cor. N. Escario St., Cebu City
UNIVERSITY OF
SAN CARLOS
University of San Carlos
Main University Building
P. del Rosario St., Cebu City
ILOILO
SM DELGADO
Delgado St. cor. Valeria St.
Iloilo City
ZAMBOANGA DEL SUR

GAISANO MALL - BAJADA
DAVAO
DIPOLOG CENTER MALL

138 Rizal Ave., Dipolog City
LB SUPERMARKET
Veterans Ave. Extension
Zamboanga City
SOUTHWAY SQUARE MALL

Gov. Lim Purisima cor. Magno Sts.
Zamboanga City
MISAMIS ORIENTAL
LANAO DEL NORTE
CDO MEDICAL CENTER
GAISANO MALL - ILIGAN
CDO Medical Center Building 2

Tiano cor. Nacalaban St.
Cagayan de Oro City
G/F Gaisano Citi Super Mall

Iligan City
CORPUS CHRISTI
SOUTH COTABATO
Corpus Christi School

Tomas Saco St., Macasandig
Cagayan de Oro City
KCC MALL - GENSAN

G/F KCC Mall - GenSan
J. Catolico Sr. Ave.
General Santos City
South Cotabato
GAISANO MALL
CAGAYAN DE ORO
LEYTE
Unit 3 2/L Atrium Gaisano Mall

Corrales Extension
cor. CM Recto Ave.
Cagayan de Oro City
ORMOC
LIM KET KAI MALL
Hotel Don Felipe Building

A. Bonifacio St.
6541 Ormoc City, Leyte
M4-193B Lim Ket Kai Mall

Cagayan de Oro City
ROBINSONS GENSAN
G/F Robinsons GenSan
(near foodcourt)
Jose Catolico Sr. Ave.
Lagao, General Santos City
MARIA REYNA HOSPITAL
NEGROS ORIENTAL
LEE SUPER PLAZA
Maria Reyna Hospital

(beside entrance/exit)
T.J. Hayes St.
Cagayan de Oro City
G/F Lee Super Plaza

M. Perdices cor. San Jose St.
Dumaguete City
CHINA BANK
U xU
2009 ANNUAL REPORT
Subsidiaries and Afliates
As the savings bank subsidiary of China Bank, ChinaBank Savings fullls

not only the economic value as source for additional revenue and prot
streams but the strategic role of capturing new customer segments for the
bank, serving as entry point for customer acquisition via new and innovative
product and service propositions that serve as learning ground for the bank.
ChinaBank Savings is intended to expand the banks market coverage and
offer a different and exciting version of the China Bank brand image.
VGP Center, 6772 Ayala Avenue

Makati City 1226, Philippines
Tel. No.: (632) 751-6000
BOARD OF DIRECTORS
RICARDO R. CHUA*
(Chairman of the Board)
Chairman:
Executive Committee
Credit Committee
Committee (Nomination
and Personnel Committee)
Compensation Committee
Member:
Retirement Committee
NANCY D. YANG**
(Vice Chairman of the
Board)
Vice Chairman:
Executive Committee
Credit Committee
Member:
SAMUEL L. CHIONG**
(Director and President)
Chairman:
Member:
Executive Committee
Credit Committee
Trust Committee
Compensation Committee
ANTONIO S. ESPEDIDO, JR.**
(Director and Treasurer)
Member:
Executive Committee
Committee (Nomination and
Personnel Committee)
RAMON R. ZAMORA**
(Director)
Member:
RENE J. SARMIENTO**
(Director)
Chairman:
Trust Committee
RHODORA Z. CANTO**
(Director)
Member:
Executive Committee
Credit Committee
Audit Committee
ALEXANDER C. ESCUCHA**
(Director)
Member:
Trust Committee
MARGARITA L. SAN JUAN**

(Director)
Member:
Credit Committee
Trust Committee
ROBERT F. KUAN***
(Director)
Chairman:
Audit Committee
Member:
ALBERTO S. YAO***
(Director)
Member:
Audit Committee
EDGAR D. DUMLAO
Corporate Secretary
OFFICERS
SAMUEL L. CHIONG**
President
CREDIT MANAGEMENT
GROUP

Treasurer
JEZREEL M. PIMENTEL
Credit Services Head
Assistant Vice President
TREASURY GROUP
Head, Senior Vice President
Chairman - Asset/ Liability
Committee
BRANCH BANKING GROUP

BIENVENIDO C. HIDALGO
Head, Senior Assistant Vice
President
Member - Asset/ Liability
Committee
WINIFREDO G. SOLIS
Credit Risk Head
Committee
EMERSON O. TURARAY
Branch Operations
and Admin. Head
TADEOS R. NATIVIDAD**
Remedial Ofcer
LANI DJ. LARION

Ayala Avenue Branch Head
LENDING GROUP
JOHN ROBERT MELVIN D.
MANIEGO
Assistant Manager, Liquidity
and Reserves Ofcer
Committee
JULIE CHRISTINE P.
ALONTAGA
Cebu-Lahug Branch Head
Manager
RISK MANAGEMENT
DIVISION
YASMIN I. BITICON**
Deputy Senior Manager
TRUST DEPARTMENT
PATRICK Y. ANG**
Commercial Loans & Program
Lending Head
Committee
OPERATIONS GROUP
EMMANUEL C. GERONIMO
Head, Vice President
Committee
EMERSON O. TURARAY
Greenhills-Wilson Branch
Ofcer-in-Charge
EMMANUELITO M. GOMEZ
Retail Consumer Loans Assistant Vice President
Committee
GEORGIANNA JEAN A.
CLEMENTE
Quezon Avenue Branch Head
Manager
QUENNIE V. UMIL
Alabang Hills Branch Head
Manager
RONALDO M. CENTENO
Kalookan Branch Head
Manager
ANNA MARIA P. YLAGAN

Committee and Trust
Committee
INTERNAL AUDIT
DEPARTMENT
SHEW KOU LEE**
Internal Auditor
Vice President
COMPLIANCE OFFICE
AGUSTIN E. DINGLE, JR.
Chief Compliance Ofcer
Vice President
HUMAN RESOURCES
DEPARTMENT
MARIA ROSANNA L.
TESTA**
LEGAL DEPARTMENT
EDGAR D. DUMLAO
Head, Senior Assistant Vice
President
MARKETING DEPARTMENT
JANICE S. TY
Manager
SECURITY DEPARTMENT
MELECIO C.
LABALAN, JR.**
Security Ofcer
With interlocking directorship and ofcership with China Banking

Corporation
** With interlocking ofcership with China Banking Corporation
*** Independent Director. Likewise Independent Directors of China
Banking Corporation
*
CHINA BANK
U U
2009 ANNUAL REPORT
Manulife China Bank Life Assurance Corporation (MCBLife) is a joint

venture company of China Bank and The Manufacturers Life Insurance
Company (Manulife), a wholly-owned subsidiary of Canada-based
Manulife Financial and one of the leading life insurance companies in
the world. Incorporated on March 23, 2007, MCBLife offers a full range
of innovative insurance and nancial products for health, wealth and
education through China Banks branches nationwide. The Bank has 5%
interest in MCBLife.
20/F LKG Tower, 6801 Ayala Ave.

Tel. No.:
(632) 843-4091
Fax No. :
(632) 845-1296
Call Center: (632) 884-7000
INDREN S. NAIDOO
President and Chief Executive Ofcer
Manulife Philippines
MARTIN CESAR P. LEDESMA
Head of Sales
Manulife China Bank Life Assurance Corporation
China Bank Insurance Brokers, Inc. (CIBI) is a full service general
insurance brokerage. Established on November 3,1998, it provides
direct insurance broking for retail and corporate customers with a wide
and comprehensive range of plans for the life and non-life insurance
segment. The life insurance retail products include Endowment,
Retirement Plans, Term, Unit Linked Plans, Whole-Life, Hospitalization
Cover, and Personal Accident Cover. The Group Policies include Credit
Cover, Employees Term Cover, Gratuity and Superannuation. Under
the Non-life Insurance category, Personal, Industrial, Commercial, and
Liability products are available.
8/F VGP Center, 6772 Ayala Ave.

Tel. No.:
(632) 885-5555
VGP Center: (632) 751-6000
RICARDO R. CHUA
President
GERARD E. REONISTO
Vice President and General Manager
DANILO B. ALIPAO
Manager
RICHARD S. PAJARILLO
Bancassurance Manager
China Bank Properties and Computer Center, Inc. (PCCI) was created
on April 14,1982 to provide computer-related services solely to China
Bank. It manages the Banks electronic banking and e-commerce
requirements, including sourcing, developing and maintaining software
and hardware, nancial systems, access devices and networks to foster
the safety and soundness of China Banks technology infrastructure and
keep its processing capabilities in top shape.
4/F & 15/F China Bank Building

8745 Paseo de Roxas cor. Villar St.
Tel. No.:
(632) 885-5055; 885-5053
885-5060; 885-5051
Fax No.:
(632) 885-5047
PETER S. DEE
President
PHILLIP M. TAN
EDITHA N. YOUNG
AUGUSTO P. SAMONTE
Vice Presidents
MA. CECILIA R. IGNACIO
JOSEPH JEFFREY B. JAVIER
JOSEPH T. YU
Senior Managers
GEORGIA LOURDES F. MAOG
RICARDO F. OPERIANO
ROSALITO C. DELA CRUZ
BELINDA D. MENDOZA
Deputy Senior Managers
CHINA BANK
U U
2009 ANNUAL REPORT
Consumer Banking Centers
CBG BACOLOD CENTER
CBG CAGAYAN DE ORO CENTER
CBG DAVAO CENTER
China Bank - Bacolod Araneta Branch

CBC Bldg. Araneta cor. San Sebastian Sts.
Bacolod City
Tel. No.
(034) 435-0647
Fax No.
(034) 433-7153
Email:
jmedelasalas@chinabank.ph
Center Supervisor : Jasmin Mae E. De Las Alas
China Bank - Cagayan de Oro-Lapasan Branch

2/F CBC Bldg. C.M. Recto Ave.
Lapasan, Cagayan de Oro
Tel. No.
(08822) 728-195
Fax No.
(088) 856-2409
Email:
eedalaguit@chinabank.ph
Center Head : Evelyn E. Dalaguit
China Bank - Davao Main Branch

2/F CBC Bldg. C.M. Recto
cor. J. Rizal St.s, Davao City
Tel. Nos. (082) 226-2103/ (082) 221-4163
Fax No.
(082) 222-5021
Email:
fsbandong@chinabank.ph
Center Head : Freddie S. Bandong
CBG BATANGAS CENTER
CBG CEBU CENTER
CBG ILOILO CENTER
China Bank - Batangas City Branch

2/F CBC Bldg., P. Burgos St.
Batangas City
Tel. No.
(043) 723-7127
Fax No.
(02) 520-6161
Email:
egricardo@chinabank.ph
Center Head : Evelyn G. Ricardo
China Bank - Cebu Banilad Branch

2/F CBC Bldg. A.S. Fortuna St.
Banilad, Cebu City
Tel. Nos. (032) 416-1915; (032) 416-1606
(032) 346-4448 to 49
Fax No.
(032) 346-4450
Email:
jomariano@chinabank.ph
Center Head : Jefferson O. Mariano
China Bank - Iloilo-Rizal Branch

2/F CBC Bldg. Rizal cor. Gomez Sts.
Brgy. Ortiz, Iloilo City
Tel. No.
(033) 336-7918
Fax No.
(033) 336-7909
Email:
mdcelajes@chinabank.ph
Center Head : Marvin D. Celajes
CBG PAMPANGA CENTER
CBG CABANATUAN CENTER

CBG DAGUPAN CENTER
China Bank - Dagupan City Branch
Siapno Bldg., Perez Boulevard, Dagupan City
Tel. No.
(075) 522-8471
Fax No.
(075) 522-8472
Email:
amcalalo@chinabank.ph
Center Supervisor : Alvin M. Calalo
China Bank - San Fernando Branch

2/F CBC Bldg. V. Tiomico St., Sto. Rosario
San Fernando, Pampanga
Tel. Nos. (045) 961-5344; (045) 961-0467
(045) 961-3542
Fax No.
(045) 961-8351
Email:
vcgutierrez@chinabank.ph
Center Head : Verna G. Guintu
ALABANG CENTER
CEBU CENTER
QUEZON CITY CENTER
G/F CBC Building Acacia Ave.

Madrigal Business Park
Ayala Alabang Muntinlupa
Tel. no.:
659-2463
Fax no.:
659-2464
Email:
hmcantolin@chinabank.ph
Hazel Marianne C. Antolin, Relationship Manager
CBC Building, Lot 2 Block 16 Cebu Business Park

Cebu City
Tel. no.:
(032) 238-0017
Fax no.:
(032) 415-5881
Email:
edrosales@chinabank.ph
gychua@chinabank.ph
Eleanor D. Rosales, Relationship Manager
Giselle Y. Chua, Relationship Manager
CBC Heroes Hills Quezon Ave. cor.

J. Abad Santos St.
Tel. nos.: 332-8738
Fax no.:
332-8725
Email:
culiao@chinabank.ph
Christopher U. Liao, Relationship Manager
China Bank Cabanatuan, Maharlika Branch

2/F CBC Bldg., Brgy. Dicarma, Maharlika Highway
Cabanatuan City 3100, Nueva Ecija
Tel. No.
(044) 600-1575
Fax No.
(044) 463-1063
Email:
mvpagdanganan@chinabank.ph
Center Head : Manuelito V. Pagdanganan
Private Banking Centers
BINONDO CENTER
6/F China Bank Building, Dasmarias
Cor. Juan Luna Binondo, Manila
Tel. no.:
241-1452 / 247-8341
Fax no.:
247-8342
Email:
ictanlimco@chinabank.ph
guyu@chinabank.ph
Irene C. Tanlimco, Relationship Manager
Genelin U. Yu, Relationship Manager
GREENHILLS CENTER
14 Ortigas Ave., Greenhills
San Juan, Metro Manila
Tel. no.:
727-7884 / 727-7645
Fax no.:
727-7645
Email:
adcruz@chinabank.ph
ghcyap@chinabank.ph
Angela Dee Cruz, Vice President
CALOOCAN CENTER
MAKATI CENTER
167 Rizal Ave. Extension, Caloocan City

Tel. no.:
366-8669
Fax no.:
363-7095
Email:
jymacariola@chinabank.ph
Jennifer Y. Macariola, Relationship Manager
15/F China Bank Building

8745 Paseo de Roxas cor. Villar St.
Makati City
Tel. nos.: 885-5641 to 45
Fax no.:
840-1983
Email:
aevramos@chinabank.ph
Alberto Emilio V. Ramos, First Vice President
Glynn Hazel C. Yap, Relationship Manager
CHINA BANK
U nU
SAN FERNANDO CENTER

2/F China Bank Building, Tiomico St.
Tel. nos.: (045) 961-0486
Fax no.:
(045) 961-0486
Email:
altolentino@chinabank.ph
Annalyn L. Tolentino, Relationship Manager
2009 ANNUAL REPORT
Remittance Afliates
ASIA
MIDDLE EAST
BRUNEI
Boza Remittance
1st Floor, Bangunan Pusat Komersial dan
Perdagangan Bummiputera, Jalan Cator
Bandar Seri Begawan
Negara Brunei Darussalam
Tel No.: 2221987
BAHRAIN
Dalil Exchange
Al Noor Building, Government Ave. Manama,
Kingdom of Bahrain
Tel. No.: (973) 223464
Email: ptsdalil@batelco.com.bh
HONG KONG, CHINA

Czarina Remittance Company Limited
World - Wide Plaza
Shop 163 1/F World Wide House
19 Des Voeux Road, Central, Hong Kong
Tel. No.: (852) 3101 9872
Czarina Remittance - North Point
Shop 21 G/F Seven Seas
Shopping Center, 121 Kings Road
North Point, Hong Kong
Tel. No.: (852) 2887 0721
Czarina Remittance - Tsuen Wan
Shop 231, Lik Sang Plaza, No. 269 Castle
Peak Road, Tsuen Wan, Hong Kong
Tel. No.: (852) 2416 0618
I-Remit
World-Wide Plaza - Shop 223
Shop 223, World-Wide Plaza, 19 Des Voeux
Road, Central Hong Kong
Tel. No.: (852) 2521 2166; (852) 2521 2167
(852) 2521 2019
I-Remit
World-Wide Plaza - Shop 104
Shop 104, World-Wide Plaza, 19 Des Voeux
Road, Central Hong Kong
Tel. No.: (852) 2521 2166; (852) 2521 2167
(852) 2521 2019
I-Remit - United Center
Shop 2042, 2/F United Center, 95
Queensway Road, Admiralty, Hong Kong
Tel. No.: (852) 2865 1389; (852) 2865 1329
I-Remit - Lik Sang Plaza
Shop 280, 2/F Lik Sang Plaza, 269 Castle
Peak Rd., Tsuen Wan, New Territories
Hong Kong
Tel. No.: (852) 2490 1028
MALAYSIA
Remit Money International SDN BHD
G/F 116 Jalan Tun H.S. Lee
50000 Kuala Lumpur, Malaysia
Tel. No.: 603-2026 6777
SINGAPORE
Brunphil Express (S) Pte. Ltd.
304 Orchard Road,02-83 Lucky Plaza
Singapore 238863
Tel. No.: 67356205
Fax No.: 67356690
Email: brunphil@pacic.net.sg
TAIWAN
Bing Go Phil. Goods
and Remittance Center
No. 49-3 Chung Shan North Road, Section 3
Taipei City, Taiwan, ROC
Tel. No.: 86012922/0931164216
KUWAIT
Al Hanifa Exchange
Fahd Al-Salem St., Opposite LG Electronics
(Al Babteen), Exchange Market Bldg., Kuwait
Tel. No.: +965-2438071-72
QATAR
Al Fardan Exchange Co. LLC
Al Fardan Center, Grand Hamad Ave
P.O. Box 339 Doha, Qatar
Tel. No.: +9744335111
With branches all over Qatar
SAUDI ARABIA
Samba Financial Group ( Speed Cash)
P.O. Box 822 , Riyadh 11421
Kingdom of Saudi Arabia
Tel. No.: 966 1 477 4770
With branches all over K.S.A.
National Commercial Bank - Quick Pay
King Abdul Aziz St.
P.O. Box 3555, Jeddah 21481
Tel. No.: 9662 6464169
Bank Al Bilad - Enjaz Banking Services
Bank Al Bilad Head Ofce
P.O. Box 140, Riyadh-11411
Tel. No.: +96614798888
Al Rajhi Banking & Investment
Corporation
Al Akariyah Bldg., No. 3, Olaya Main Road
P.O. Box 28 Riyadh -11411, Saudi Arabia
Tel. No.: +96612116297
UNITED ARAB EMIRATES
Al Ansari Exchange
Head Ofce - P.O. Box 325
Al Amin Tower, Liwa St., Abu Dhabi U.A.E.
Tel. No.: +97126108888
With branches all over UAE
UAE Exchange Centre (Xpress Money)
PO Box 170, Level 02, Al Sayegh Centre
Sh. Hamdan St., Abu Dhabi, UAE
Tel. No.: +971-2-6105555
Al Ghurair Exchange
P.O. Box: 5530
Ofce # 702, Clock Tower Al Maktoum Roa
Masaoud Building, Deira, Dubai
United Arab Emirate (UAE)
Tel. No.: +9714 2222955
CHINA BANK
Wall St. Exchange Center LLC

Head Ofce - P.O. Box 3041, Dubai, UAE
Tel. No.: +97142284889
I-Remit Calgary
Pacic Mall, 636-999 36th St.
NE Calgary, Alberta T2A 7X6
Tel. No.: (1) (403) 569 8887
Al Fardan Exchange Co. LLC

P.O. Box 498
Abu Dhabi, United Arab Emirates
Tel. No.: +97126223222
I-Remit Edmonton
Unit 2571, Chinatown Hall, West Edmonton
Mall 8882-170 St., Edmonton, AB T5T 4M2
Tel. No.: 780-4758893
NORTH AMERICA & CANADA

CALIFORNIA, USA
East West Bank of California
Corporate Headquarters
135 N. Los Robles Ave.
Pasadena, California 91101 USA
Tel. No.: (626) 768-6000
Email: info@eastwestbank.com
With branches all over Southern
California and Texas
Philippine Express Remittance
and Allied Services (PERA)
34 San Pedro Road, Daly City, California
94015 USA
Tel. No.: (650)757-2001
Fax
(650)757-2014
HAWAII, USA
Kwik Money Remittance
1159 North King St., Honolulu, Hawaii 96817
Tel. No.: (808)847-1700
Fax
(808)841-8696
Email: jorge@kwikremit.com
CANADA
MRGliane Universal Corporation
1-2776 Eglington Ave. East, Toronto Ontario,
Canada, MIJ 2C8
Tel. No.: (416) 916-1484
Fax:
(416) 916-1499
Mobile: (416) 617-9710
Email: rgli@mrgliane.com
customerservice@mrgliane.com
HyperWallet Systems, Inc.
Suite 1200, 736 Granville St. Vancouver BC
Canada
Email: tia@hyperwallet.com
International Remittance
(Canada) Ltd. - (I-Remit) Vancouver
1549 West Broadway
Vancouver B.C V6J 1W6
Tel. No.: (1) (604) 733 3631
(1) (604) 733 3643
I-Remit Toronto Branch - Jamestown
Unit 112, 240 Wellesley St. East
Toronto, Ontario M4X1G5
Tel. No.: (1) (416) 926 9358
I-Remit Toronto Branch - Bathurst
3776 Bathurst St. cor. Wilson St.
Toronto, Ontario M3H 3M6
Tel. No.: (1) (416) 630 6407
U U
2009 ANNUAL REPORT
I-Remit Mississauga
Dixie Park Centre, 1550 South Gateway Rd.
Unit 118, Mississauga, ON L4W 5G6
Tel. No.: (905) 602-4942
AUSTRALIA & THE PACIFIC ISLANDS

AUSTRALIA
Worldwide Exchange Pty.Ltd. Blacktown
Suite 1, 16 Main St., Blacktown
New South Wales 2148 Australia
Tel. No.: (612) 9621 6373
Worldwide Exchange Pty. Ltd. - Perth
Shop 1028A Centro Galleria Shopping
Centre, Cor. Collier and Walter Rds. Morley
WA 6062
Tel. No.: 08-92767131; 08-92752814
08-92752785
NEW ZEALAND
IRemit New Zealand Limited
903A 2nd Floor, Fountain Lane Nth
Botany Town Centre
Cnr Ti Rakau & Te Irirangi Drives
East Auckland, New Zealand
Ofce No.: (09) 277-2181
PALAU
Pinoy Express (Palau) Inc.
2nd Floor , Tsueno Prof. Building, Ikelau
Koror Palau, Palau
Tel. No.: +680-4883559
EUROPE
AUSTRIA
IRemit Europe
Remittance Consulting AG
Singerstrasse 2 Top 3 (4th Floor)
1010 Vienna Austria
Tel. No.: +43 1 513 16 66
GREECE
Elite Exchange Remittance Services S. A.
42 Sevastoupoleos Str., Athens 11526
Tel. No.: +30 210 7470350
LONDON, UNITED KINGDOM
LCC Trans-Sending Ltd.
Units 3 and 4, Sycamore Court
Royal Oak Yard
Bermondsey St., London
Tel. No.: +442073781100
I-Remit Global Remittance, Ltd.
1/F Orchard House, 167-169 High St.
Kensington, London W8 65H
United Kingdom
Tel. No.: 0207 938 3388 / 0207 993 6151
0207 993 6152
Products and Services
DEPOSITS AND RELATED SERVICES
Collection of Clean and Documentary Bills
Peso Deposits
Checking, Savings, Time
Bank Guaranty (Shipside Bond)
Disbursements
Check Write Plus (Corporate and
Managers Writing Check
Writing System)
Upload Pro File Delivery System
BIR eFPS Online Tax Payments
Comprehensive Payroll Offering
(Crediting and Outsourcing)
SSSNet Loan Repayment and
Employee Contribution Facility
Automatic Debit Arrangement
Stockholders Dividend Credit Facility
Liquidity Management
China Bank Online (Corporate)
Sure Sweep (Account Sweeping/Pooling)
Customized Bank Statement
Generation System
Purchase and Sale of Foreign Exchange

Foreign Currency Deposits
(US Dollar and Euro) Savings, Time
Travel Funds
Managers / Gift Checks
Servicing of Foreign Loans and Investments
Safety Deposit Box
Trade Industry
SSS Pension Accounts
Trust Receipt Facility
Payroll Servicing Facility
Correspondent Banking Services
Direct Deposit Facility for US Pensioner

Night Depository Services
TREASURY SERVICES
Armored Car Deposit Pick-up Services
Peso Denominated Instruments

Government and Corporate Bond Issues
Domestic Collections
Foreign Currency Denominated Instruments
Government and Corporate Bond Issues
REMITTANCE SERVICES
Foreign Exchange
Spot, Forward, Swaps
Foreign and Domestic Remittances
Bills Payments / Donations

BIR
Philhealth
SSS
Credit Cards
Loans
Internet and Telecommunications
Utility and Cable TV Companies
Insurance / Pre-need
Schools
Charitable Institutions
Others
China Bank On-Time Remittance

TRUST SERVICES
China Bank Smart Money Card
Western Union Money Transfer Services
Philippine Retirement Authority Remittances
and Deposits
Corporate and Institutional Trust

Fund Management
Employee Benet Planning
Retirement Plan
Provident/ Savings Plan
Escrow Services
Collateral / Mortgage Trust
Loan Agency Services
INSURANCE PRODUCTS
Wealth Management
Estate Planning
Living Trust
Life Insurance Trust
Investment Management Arrangement
Investment Advisory
Investment Agency
Individual Life Insurance

Mortgage Redemption Insurance
Term Insurance
Bancassurance
Income Protection
Critical Illness
Retirement
Savings and Education
Investment with Protection
LOANS AND CREDIT FACILITIES

Agriculture, Commercial and Industrial
Financing
Special Lending Programs
Countryside Loan Funds
BSP Rediscounting
Industrial Guarantee Loan Fund
Environmental Development Program
Sustainable Logistics Development
Industrial and Large Projects
Unit Investment Trust Funds

China Bank Money Market Fund
China Bank Dollar Fund
China Bank GS Fund
Guarantee Programs
Consumer Loans
HomePlus Real Estate Loan
Contract-to-Sell Financing
AutoPlus Vehicle Loan
Personal Loans
Foreign Currency Loans (US Dollar, Euro
and Japanese Yen)
INTERNATIONAL BANKING
PRODUCTS AND SERVICES
Import and Export Financing
Foreign and Domestic Commercial Letters
of Credit
Standby Letters of Credit
PAYMENT AND SETTLEMENT SERVICES
Group Life Insurance

Non-Life Insurance
Fire Insurance Residential, Commercial
and Trust Receipts
Motor Car Insurance
Aviation Insurance
Marine Insurance Hull/Vessel and Cargo
Electronic Equipment Insurance
Liability Insurance Comprehensive
General Liability, Products, etc.
Directors and Ofcers Liability Insurance
Electronic Banking Channels

China Bank Automated Teller Machine (ATM)
China Bank TellerPhone
China Bank Online (Internet and Mobile
Banking)
Cashless Shopping (POS)
Cash Management Services
Collections
Check Depot Post-Dated Check
Warehousing Services
Sure Collect Check Deposit
Pick-Up Services
Bills Pay Plus Multi-Channel Bills
Payment Services
BancNet Payment System
Provincial Cash Deposit
Pick-Up Services
Automatic Credit Arrangement
CHINA BANK
U {U
2009 ANNUAL REPORT
Accident and Health

Medical Insurance HMO
Personal Accident Individual Group
Travel Insurance
Casualty Money Insurance, Fidelity
Guarantee, Property Floater
All Risk Insurance Contractors All Risk
(CAR) Insurance / Erectors All Risk
Insurance Bonds (Judicial / Performance /
Fidelity / Surety, etc.)
Specialized Insurance Programs
ANNUAL STOCKHOLDERS MEETING
INSTITUTIONAL INVESTOR INQUIRIES
May 6, 2010, Thursday, 4:00 pm (Every first Thursday of May)

Penthouse, China Bank Building
8745 Paseo de Roxas corner Villar Street
China Bank welcomes inquiries from institutional investors,

analysts and the financial community. For information about
the developments at China Bank, please contact:
SHAREHOLDER SERVICES
For inquiries or concerns regarding dividend payments,
account status, change of address or lost or damaged stock
certificates, please get in touch with:
Stock and External Relations
Contact persons : Atty. Leilani B. Elarmo / Amalia D. De Leon
Tel.
: (632) 885-5133; 885-5135
Email
: lbelarmo@chinabank.ph
addeleon@chinabank.ph
Stock Transfer Service, Inc.

Unit 34-D Rufino Pacific Tower
6784 Ayala Avenue
Contact persons : Antonio M. Lavia / Ricardo D. Regala, Jr.
Tel. No. : (632) 403-2410; 403-2412; 403-3798
Fax No. : (632) 403-2414
We welcome letters or all such communications on matters

pertaining to the management of the Bank, stockholders rights,
or any other bank-related issues of importance. Stockholders
who wish to communicate with any or all of the members of
the China Bank Board of Directors may send letters to:
Atty. Corazon I. Morando
Corporate Secretary
Investor Relations Office

Contact person : Alexander C. Escucha, FVP
Tel.
: (632) 885-5601
Email
: investor-relations@chinabank.ph
Website : www.chinabank.ph
CHINA BANKING CORPORATION

China Bank Building
www.chinabank.ph

2009 Annual Report China Bank

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2009 Annual Report China Bank

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More Than Your Banker,

The Right Partner

ABOUT THE COVER

China Banking Corporation (China Bank), stock symbol

CHIB, commenced business on August 16, 1920 as

the first privately-owned local commercial bank in the

Philippines catering initially to the needs of Chinese-

Corporate Social Responsibility

Filipino businessmen. It played a key role in post-World

War II reconstruction and economic recovery through

its support to businesses and entrepreneurs in critical

industries. China Bank was listed on the local stock

exchange in 1947 and acquired its universal banking

license in 1991. The Bank serves the corporate,

commercial, middle, and retail markets with a wide range

of domestic and international banking services. It is one

Off-Branch ATM Locations

of the largest universal banks in the country in terms of

Subsidiaries and Affiliates

assets, capital base and market value.

Consumer Banking Centers

Private Banking Centers

Mission Statement / Core Values

Products and Services

Mission Statement / Core Values

We will be a leading provider of quality

We will be a primary catalyst in the creation of

EARNINGS PER SHARE [In Pesos]

CASH DIVIDENDS PAID [In Million Pesos]

STOCKHOLDERS EQUITY [In Million Pesos]

TOTAL RESOURCES [In Million Pesos]

NET INCOME [In Million Pesos]

LOAN PORTFOLIO BY INDUSTRY CLASSIFICATION

Wholesale & Retail Trade

Electricity, Gas & Water

Mining & Quarrying

2009 ANNUAL REPORT

For the Year (In Pesos)

At Year End (In Pesos)

Key Performance Indicators (In %)

2009 ANNUAL REPORT

Chairman of the Board

Vice Chairman of the Board and

2009 ANNUAL REPORT

China Banks performance in profitability, efficiency

To Our Stockholders and Friends,

supportive monetary and fiscal policy cushioned the

2009 ANNUAL REPORT

HENRY SY, SR.

In addition, the year 2009 saw industry loans growth

years P2.917 billion. China Bank continued to be ranked

2009 ANNUAL REPORT

China Bank was cited by Stern, Stewart & Co. as one

our funding strategy was our renewed focus on building

2009 ANNUAL REPORT

The program to put in place a dramatically larger

shareholder value for the period 2002-2008. China Bank

As we celebrate China Banks 90th year of service in

The acquisition of Manila Bank with its 75 branch

by IFR Asia as the Domestic Bond Deal of the Year

2009 ANNUAL REPORT

Meanwhile, China Banks innovation initiatives will

In the last quarter of 2009, we launched a

Chairman of the Board