psbank annual report 2013

2 0 1 3 A n n u a l R e p o r t

For the Real Stuff

About Our ThemeSaving for the rainy days has been a familiar concept to Filipinos who grew up hearing the story of the grasshopper and the ant. The good news is that even the younger generation of Filipinos is still actively and con!dently saving for the future, according to recent consumer surveys.

As one of the countrys leading consumer banks, PSBank knows how to make your money work hard for you whether its for helping your children learn the value of saving, buying your own home or car, or growing your business. We help you make sure youre !nancially safe and secure when it counts. We help you save up FOR THE REAL STUFF.

Philippine Savings Bank (PSBank) !rst opened its doors to the public on September 26, 1960 and became the !rst publicly listed thrift bank in the Philippines in 1994.

PSBank caters mainly to the retail and consumer markets with a wide range of products and services such as deposits, loans, treasury and trust. It continues to reach out to more customers through its 224 branches and 551 in-branch and o"site ATMs as of end-2013.

PSBank Online, a secure 24/7 Internet channel, is an alternative channel that extends the PSBanking experience to users anywhere in the world.

PSBank belongs to GT Capital Holdings, Inc., the publicly listed hold-ing !rm of the family of George S.K. Ty, founder of Metropolitan Bank and Trust Company (Metrobank). GT Capital has diverse investments in established companies that are dominant in their respective markets. These include Metrobank, Federal Land, Toyota Motor Philippines Corp., Global Business Power Corp., and Philippine AXA Life Insurance.

For more information about PSBank, log on to www.psbank.com.ph

VISION

To be the countrys consumer and retail bank of choice.

MISSION

As an INSTITUTION: To conform to the highest standards of integrity, professionalism and teamwork.For our CLIENTS: To provide superior products and reliable, top-quality services responsive to their banking needs.For our EMPLOYEES: To place a premium on their growth, and nurture an environment of teamwork where outstanding performance is recognized.For our SHAREHOLDERS: To enhance the value of their investments.

CORE VALUES

In realizing our mission and vision, we will be:PROACTIVE in serving our customers.PERFORMANCE-driven and recognized, reinforced, and rewarded accordingly.PROFESSIONAL to the highest standards and in all respects.PEOPLE-ORIENTED in our dealings with our internal and external customers alike.

Contents

2 Financial Highlights4 Message from the Chairman6 Presidents Report 8 Operational Highlights 14 Money Matters 14 Teach kids how to save 16 Time to save for your goals 18 Manage your loans 20 Make your savings grow

22 Corporate Social Responsibility24 Risk Management 28 Corporate Governance 37 Audit Committee Report38 Board of Directors40 Senior O#cers 42 Pro!les of Senior O#cers44 CFOs Report 46 Managements Discussion and Analysis

48 Statement of Managements Responsibility

50 Independent Auditors Report52 Audited Financial Statements146 Branches156 O"site ATMs166 Billers167 Metrobank Group168 Products and Services172 Shareholders Information

NEED STOCK PHOTOS FOR THE BACKGROUND CHALK AND BLACKBOARD

Financial Highlights Statements Of Condition

Statements Of Income

Total Assets Total Loans and Receivables

Total Deposits

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Capital Funds (in Php billion)

Earnings Per Share (in Php billion)

Net Income (in Php billion)

Loans (in Php billion)

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December 31 December 31 December 31 2013 2012 (restated) As of 1 Jan 2012 2010 2009 2008 (restated)

ASSETS Cash and Other Cash Items 19,050,497,768 14,328,336,240 11,960,957,295 13,584,367,666 9,099,722,803 5,941,771,647Interbank Loans Receivable and Securities Purchased Under Resale Agreements 14,527,000,000 6,100,000,000 10,480,000,000 3,586,560,000 5,900,000,000 750,000,000 Investments 5,833,670,642 16,992,863,926 31,061,722,100 26,231,240,458 23,282,265,995 19,505,842,607Loans and Receivables 82,917,120,994 70,412,582,319 58,190,152,155 53,207,635,160 47,308,237,957 41,603,346,112 Investments in an Associate and a Joint Venture 1,346,142,412 1,237,181,758 1,237,381,423 829,873,755 788,310,337 369,951,789 Property and Equipment 2,389,780,404 2,412,337,390 2,382,152,118 2,107,316,622 1,985,474,732 1,765,934,385 Investment Properties 2,589,408,311 2,622,918,872 2,802,259,434 2,772,308,932 2,582,767,705 2,776,144,811 Other Assets 1,372,254,218 2,054,743,793 2,141,677,462 1,830,166,668 2,141,050,112 1,923,728,112 130,025,874,749 116,160,964,298 120,256,301,986 104,149,469,261 93,087,829,641 74,636,719,463

LIABILITIES AND EQUITY Liabilities Deposit Liabilities 106,518,503,910 94,624,286,307 101,550,335,610 87,518,809,267 77,390,211,286 61,678,482,921 Subordinated Notes and Bills Payable 2,972,366,024 2,969,797,342 0 1,977,141,032 1,973,881,534 2,208,541,621 Other Liabilities 4,271,929,336 3,539,642,323 3,178,134,260 3,044,441,571 2,711,598,326 2,276,970,219 113,762,799,270 101,133,725,972 104,728,469,870 92,540,391,870 82,075,691,146 66,163,994,761 Equity Common Stock 2,402,524,910 2,402,524,910 2,402,524,910 2,402,524,910 2,402,524,910 2,402,524,910 Capital Paid in Excess of Par Value 2,818,083,506 2,818,083,506 2,818,083,506 2,818,083,506 2,818,083,506 2,818,083,506 Surplus Reserves and Surplus 11,240,640,144 9,753,666,282 8,055,688,371 6,090,406,392 5,087,136,893 4,027,311,845 Net Unrealized Gains and Cumulative Translation Adjustment (198,173,081) 52,963,628 2,251,535,329 298,062,583 704,393,186 (775,195,559) 16,263,075,479 15,027,238,326 15,527,832,116 11,609,077,391 11,012,138,495 8,472,724,702 130,025,874,749 116,160,964,298 120,256,301,986 104,149,469,261 93,087,829,641 74,636,719,463

Years ended December 31 2013 2012 (restated) 2011 2010 2009 2008INTEREST INCOME 9,027,235,611 8,786,264,360 8,976,586,827 7,913,097,318 7,529,532,086 6,129,607,034 INTEREST EXPENSE 2,340,415,810 3,114,474,095 3,267,133,019 2,900,694,510 2,696,054,957 2,420,109,373 NET INTEREST INCOME 6,686,819,801 5,671,790,265 5,709,453,808 5,012,402,808 4,833,477,129 3,709,497,661 NET SERVICE FEES AND COMMISSION INCOME 962,558,457 878,624,324 732,878,178 691,681,482 596,241,357 534,365,260 TOTAL OPERATING INCOME 12,174,960,104 9,265,356,796 7,684,799,588 8,236,537,847 6,271,337,230 4,937,458,499 OTHER EXPENSES 8,175,866,491 6,445,422,508 5,688,672,802 5,624,905,692 4,942,951,461 3,843,526,649 SHARE IN NET EARNINGS OF AN ASSOCIATE AND A JOINT VENTURE 109,569,160 (18,323) 8,271,646 41,563,417 45,129,698 46,820,603 PROVISION FOR (BENEFIT FROM) INCOME TAX 1,180,173,965 545,332,076 (24,360,250) 845,080,234 133,501,051 200,600,860 NET INCOME 2,928,488,808 2,274,583,889 2,028,758,682 1,808,115,339 1,240,014,416 940,151,593

2 | PSBank 2013 Annual Report | 3

Message from the Chairman

I have worn many hats first an entrepreneur, then an economic manager, a long-time civil servant, philanthropist and civic leader, and always a family man. Like everyone, I view the world through the lens of my experiences. And so Ill talk about a few things Ive learned along the way, hoping that our customers at PSBank might be able to relate or pick up valuable lessons from my personal life journey, and understand why we are committed to helping them secure their future.

When I was eight years old, I had to earn my school allowance by delivering telephone directories to homes and got 50 centavos per delivery. In my early days as an entrepreneur, I supplied banana ketchup to Maxs Restaurant from the back of my house. I also ran a small feed mill, a broiler farm, and delivered chickens. In 1983, when the country was in a deep crisis, I started the 7-11 convenience store chain. Now, at 74, I serve as either Chairman of the Board or Director of a total of 18 companies.

I learned to work hard ever since at a young age and because of this I have always known the value of hard-earned money. Even when I became an investor, I still strived to live below my means, looked closely at my values, and examined what Im spending my money on. So my best financial advice to PSBank customers is: live simply. Save up only FOR THE REAL STUFF.

I agree, money matters can get overwhelming whether youre running a small business or a large enterprise, or simply paying your credit card bills or your kids tuition fees. Thats why you need a partner you can trust with your hard-earned money, help you make it grow, and keep you financially secure, now and in the future.

At At PSBank, we invest in knowing our customers better, coming up with products that suit their practical needs, offering convenience, and ultimately, making life simple. Our role goes beyond banking. By helping our customers save money, we enable them to secure their future. By helping them grow their business, we nurture their entrepreneurial ideas. In so doing, they spark economic growth, and this benefits us all.

We saw this happening in 2013. While growth in other neighboring economies, except for China, was slowing, the Philippine economy remained vibrant, rising 7.2% in 2013 from 6.8% in the previous year. Our country obtained three investment upgrades from the major credit rating agencies, and this lured local and international investors to our Philippine Stock Exchange, which closed at record highs almost every day in the first quarter. The combination of strong growth and low inflation also lifted most corporate earnings. Remittances from overseas Filipino workers and the business process outsourcing industry sustained their steady stream, and this flowed into the retail, real estate, banking, leisure and tourism, food, and other sectors. As one of the countrys leading consumer bank, PSBank benefited from this heady growth. And it excites us to see that our robust

business performance in the past years has opened up many opportunities for our shareholders, in the form of higher dividends; and for our customers, through product and service enhancements.

These opportunities were made possible by the strong dedication and commitment of talented and motivated PSBankers in our branches all over the country, led by a strong and experienced management team.

In this regard, I want to personally thank our former President, Pascual M. Garcia III, for his leadership and commitment that have sustained PSBanks growth in the past 12 years. His belief that our success depends on the success of customers continues to guide our strategy and is increasingly embedded in the culture of the Bank. Our gratitude also goes to former Director David T. Go for helping us uphold good corporate governance principles in our Board.

Its a pleasure to welcome Vicente Cuna, Jr. to his new role as PSBank President. Having served as Vice Chairman in our Board, Bliz brings to his role a deep knowledge of our business and his vast experience working in many global, as well as local, financial institutions. Our Board is also privileged to welcome a new Director, Jeanne Frances T. Chua.

As your Board of Directors, we will work closely with Bliz and his management team in a shared commitment to grow the Bank, work more efficiently for customers, and capitalize on our strengths in the consumer market.

The Philippines remains a bright spot in Asia, and we see this upswing lasting beyond 2014. While there is reason for guarded optimism, largely due to the expected volatility of the global markets, we remain confident and excited about what can be accomplished in the year ahead.

We remain true to our commitment of serving our customers better and we will seize potential opportunities that may arise as our business grows.

It has been a privilege to serve on the Board of Directors and to enjoy ing your trust and confidence. I hope you will continue to depend rely on us to take accompany you through your personal financial journey.

Jose T. Pardo


Presidents Report

Juan dela CruzChairman

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Operational Highlights

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LARGE ENTERPRISE

Our large enterprise portfolio held up amidst very competitive market rates. We posted new bookings of more than Php 2.5 billion and ended the year with a portfolio level of Php 10.4 billion (change with ADB !gure in end-2013 FS request this from Finance Groups Sir Noel Ang). We were able to establish new lending relationships with an upcoming real estate !rm and a holding company with interests in electric utilities, in addition to our participation in the foreign secondary market for Philippine corporate bonds.

DIRECT SALES

We were able to grow the number of our new deposit customers and improve our sales productivity through our Direct Sales, a channel comprised of sales teams geared towards soliciting and acquiring new CASA customers. This was accomplished through a well-de!ned training program, a focus on deposit-select products and a motivated sales organization. for Philippine corporate bonds.

BRANCH BANKING

We showed a signi!cant increase in acquiring new customers and opening new deposit accounts last year. Total deposits grew by 13% year on year. We opened 4 branches and put up 19 additional ATMs in 2013. To better serve our customers, we were also able to renovate 28 branches, with 30 more due for renovation in 2014.

E-CHANNELS

We showed a signi!cant increase in acquiring new customers and opening new deposit accounts last year. Total deposits grew by 13% year on year. We opened 4 branches and put up 19 additional ATMs in 2013. To better serve our customers, we were also able to renovate 28 branches, with 30 more due for renovation in 2014.

INDIRECT SALES

Our total consumer loans sustained their uptrend in 2013, with our Auto Loans increasing by more than 24% and our Home Loans rising by 27% compared to the previous year. This was achieved through Indirect Sales Channels faster loan processing, improved coverage for auto dealers and e"ective tie-ups with real estate companies. Indirect Sales Channel is the group that solicits mortgage, auto and personal loans via third party channels like car dealers, real estate developers, and sales agencies. ISC creates and maintains good business relationships with these third party channels by providing innovative product features and excellent services including quality coverage of their business areas.



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LOANS OPERATIONS

We became the !rst thrift bank and second among all banks to have an extension o#ce of the Land Registration Authority (LRA) extension o#ce in its premises. The extension o#ce facilitates veri!cations of Transfer Certi!cate Title which has greatly reduced our turn-around-time to only 3 days. Other services include the processing of simultaneous requests for E-titles and the handling of requests for a copy and printing of Certi!ed True Copy of Titles anywhere straight from the LRA Database.

INTERNAL AUDIT

We completed our risk-based audit plan that covered assurance reviews of branches, sales desks, ATM hubs, head o#ce units and application systems. We likewise enhanced our policies and procedures for a more e#cient management of our audit activities.

TREASURY

In 2013, we upgraded our SEC GSED license from dealer to dealer-broker, enabling the Bank to engage in the business of buying and selling securities for retail clients. Our treasury business posted signi!cant gains from the sale of government securities and generated higher deposit levels.

TRUST DIVISION

After obtaining regulatory approval for our !rst Unit Investment Trust Fund, we made preparations to launch the fund in early 2014 to provide an opportunity for individual or corporate investors to earn relatively higher yields compared to regular savings and time deposit accounts. This investment option o"ers $exibility as it allows investors to easily access their funds and its earnings any time after the minimum 30-day holding period without any charges or penalties. It also o"ers convenience since interested investors need not administer or manage the funds themselves. A professional team will manage the funds for them.

OPERATIONS

PSBank, together with parent bank Metrobank, are the !rst banks in the country to initiate steps and invest heavily in the EMV-enabled ATMs to provide heightened ATM security features to our clients. This is our !rst step in providing full protection to our clients against the global issue of ATM card skimming. This is also in line with the requirement to upgrade the security features of all ATMs in the country to address this concern. To further protect our customers, we installed PIN pad shields in ATMs to prevent the occurrence of card skimming and CCTVs for additional security. Our ATMs are also now equipped with a card-return-on-power-failure feature to minimize, if not eliminate, incidents of card capture.

RISK MANAGEMENT

We implemented a facility risk rating model for our SME loans in 2013 as an additional tool to our existing borrower risk rating model and qualitative assessment for credit extension.



CREDIT ADMINISTRATION

We sustained e"orts to deliver fast decisions on auto, mortgage and personal loans. Our loan processing system was enhanced through e#cient handling of requests for reconsideration, elimination of time wastages during routing of accounts and the automated capture of borrower income pro!les.

BUSINESS INFORMATION MANAGEMENT SYSTEMS

We recently acquired a pro!ling and predictive analytics tool to address our customers changing needs under di"erent business environments. This allows us to understand customers further and anticipate ways to be of better service to them. We also upgraded our monitoring systems for enhanced coverage, improved quality and greater timeliness of reports.

INFORMATION TECHNOLOGY

IT continued to improve the Banks information systems and upgrade technology infrastructure to provide faster, reliable and more secure banking transactions for our customers. PSBank Online, our 24/7 online banking facility, was migrated to a new and better platform in anticipation of an increase in enrollment and online transactions. We also enhanced our branch document imaging facility, designed and implemented a customer acquisition and tracking system that will improve monitoring of new clients and customer information, and activated the UITF module to support Trusts activities. We also improved on the following areas: implemented a return mail tracking system to monitor and improve our mailing services and e"ectively update client information on return mails and transferred the Banks deposits and ATM hardware and network infrastructure to a more secure and improved location.

MARKETING COMMUNICATIONS

To highlight PSBank as a provider of easy and simple ways to save money, we launched a campaign on our deposit products that featured top celebrity-endorsers in the Philippines today. We also launched the PSBank Kiddie and Teen Savers Accounts through print, TV and radio advertisements targeting parents and their children, and organized events in college campuses to tap the teen market. for Philippine corporate bonds.

HUMAN RESOURCES

We installed a new system in our Human Resources Group to more e#ciently monitor and track employee data for payroll management and accounting. As part of our internal campaign to safeguard the environment, 100 PSBank volunteers participated in Metrobanks Tree Planting activity in Mt. Makiling, Los Banos, Laguna.


MONEY MATTERS: Teach kids to save

Saving and investing is part of the !nancial literacy journey of a person. And teaching this skill starts at a young age. After all, you teach your kids how to read or write right away, so why not teach them how to deal with money right away?

Let me share with you some things we did to raise our children with a high FQ (!nancial intelligence quotient):

1. Start them early.As soon as they were born, we opened savings accounts where we deposited the cash gifts they received. By the time they were old enough to start asking about money, they already have !nancial security. 2. Start small then show them how to grow their own money.So they understand money better, we label their savings as small account and big account. The small amount goes into a treasure box. Once this reaches P1,000, they deposit it into their bank account. When it goes beyond the minimum balance, they transfer it into a big account, which can be time deposits or !xed-income instruments. They know they are giving the bank time to invest their money so if the bank invests it well, they will have their share of the earnings through interest.

3. Time is money.We show our kids the magic of compounding: how the weekly savings from their allowance can turn them into a millionaire even at the age of 12

if they save religiously. In accumulating wealth, the biggest factor is time and time is what the youth have an abundance of.

4. Make it a habit.It only takes 21 days to form a habit, especially if you have the will. We teach our kids to be conscious about their regular expenses or the little things they buy. We prescribed a minimum of 20% for savings. As they get into the habit and earn more, they will be able to save up more.

5. Impart the values.Kids these days are exposed to a lot of peer pressures thats why its important for us to raise our children with a healthy self-esteem. They know they dont have to buy expensive stu" just to be cool or just to belong.

When we go into a store, we dont tell them, Were not buying that because its too much. This way, theyll know its not the money or not having the money that determines the purchase. We dont want them to grow up thinking that once they can already a"ord it, they can just go and buy.

Whenever you teach money, you teach it with the right values. If you dont, theyll just become reckless when they get rich. Set a good example for your kids when it comes to money. Values are better caught than taught. Everything theyll learn in life starts at home.

From keeping piggy banks, the four children of Maria Joselita Ang trooped to the nearest PSBank branch to open their own Kiddie Savers and Teen Savers accounts.

The kids three boys and the only girl like keeping save much of from their weekly allowance so why not put the money in the bank and get them keep individual passbooks, , says their mother, who has been a PSBank client since 2011. So she thought: why not put the money in the bank and keep their individual passbooks?

The younger ones, ages 7, 9, and 11, opened a Kiddie Savers Account, which is for ages 0-12 years. The eldest, now at 13, got a Teen Savers Account, which is for teens 13-18 years old. These accounts do not require an initial deposit or maintaining balance.

The childrens savings accounts, boasting of an increasing balance, also serve as a new home to for their the cash gifts and prizes they get from their grandparents, relatives, and godparents.

She and her husband feel that !nancial discipline should be taught to children, along with spiritual, social, academic, and personal values. We want to teach them the importance of !nancial sense, she adds.

The family is big on saving, both for the proverbial rainy day as well as for sunny days, such as holidays. The childrens toys and gadgets are mostly presents from relatives and friends so which means that extra funds can go to sports activities and equipment.

The children are also taught to share. They have little cans ready for donation in to their schools charity drives and disaster relief operations in school.

We are teaching our children to spend wisely, save diligently, and share their blessings so they will grow up to be money smart, a proudly beaming Mrs. Ang says.

Raising money smart kids

Rose Fres Fausto is a former investment banker who left her !nancially ful!lling career to become a full-time homemaker. Aside from !nding greater ful!llment in raising her sons Martin, 23; Enrique, 21; and Anton, 17, Rose is also an online newspaper columnist and author of the book, Raising Pinoy Boys. She is married to investment banker Marvin Fausto.

Raising kids with a high FQ


MONEY MATTERS: Time to save for your goals

We Filipinos practice isang kahig, isang tuka (from hand to mouth). Most of us go on a shopping spree as soon as we get our salary, even buying things we dont need. Some of us !nd it unwise to keep money in the bank. This leaves us with no savings at all some even buried in debt.

Its time to rethink the way we view money. Here are some helpful tips:

1. Learn the true value of money.In my books, I talked about the Piso Yan and Kurot principles. The Piso Yan Principle makes us realize the value of every peso; you cant have P100 with one peso missing. Filipinos have this notion that one peso is too small a value. When you see the value of every peso, it will be harder for you to spend it.

The Kurot Principle reminds us to spend only a small part of the budget and keep the rest for the rainy days. Sometimes, we unknowingly buy things we dont need. Keeping these two principles in mind will teach you the true value of money.

2. Follow the 70-20-10 principle.Its not wise to use all your money to buy things all at once. So set aside 70% of your monthly salary for paying for necessary expenses, 20% for savings, and use the remaining 10% on giving back to others. Following this principle

will not only teach you to prioritize necessary expenses over other needs and wants, but will also give you a nudge to save up and share your blessings with those in need.

3. Consistency is quality.In my programs, I always tell the trainees to be ma-AGA: A stands for Alamin determine your problems. Which aspects of your life leave you with no savings? Point those out, list them down, and decide on how to improve it.

G stands for Gawin: now that you have determined the problems and have probable solutions in mind, put those into action. Devise your personal timeframe and stick to it.

Lastly, A is for Araw-araw. Make it a daily habit to spend wisely and stick to your plans. If you go back to your old ways, the e"ort you put into being !nancially stable today might be put into waste tomorrow.

4. Change your perception towards banks.Where will you keep all those money you saved? Dont put it under your pillow. Choose a bank that o"ers a good time deposit product and put your savings there so your money can grow. Keeping a safe distance from your own money by keeping it in a good bank will not only earn you a hefty interest in the long run, it will also be a !rewall from your spending spree ways.

Viviano Cruz, 75, considers himself both a saver and a spender.

I wish I could say Im more of the former, but Im not. If Im interested in a new TV set and I have the money for it, or I can use my credit card, I go ahead and buy it, he admits.

The father of two and grandfather of three, however, puts a premium on saving up for the future. As a US veteran living in San Pablo, Laguna, he was able to save most of his retirement pensions, mainly through time deposit placements.

A loyal customer of PSBank, Mr. Cruz even keeps a journal of all his time deposits and keeps track of the maturities and interest rates.

Instead of making new investments, like buying stocks or bonds, he likes to stick to what the Bank has to o"er. Ive known people whose !nancial losses have taken a toll on their lives. Im more into dealing with the bank if the product sounds good, I go for it and hope to make something out of it, he says.

He is very discriminating when it comes to choosing a bank. I have savings accounts in di"erent banks, but Im happiest with PSBank, he adds. When you come into their branch, they take a personal interest in you and are always ready to serve you. They look after you.

Mr. Cruz, who lives with his wife and enjoys a light daily routine (including doing the groceries as a couple), highlights his relationship with his bank manager as one of the reasons he has stuck it out with PSBank.

Its nice to know there is always someone willing to lend me a helping hand and takes the time to help me out with anything. I go in there and come out with a big smile on my face because I like the way they operate, he says.

Time well saved

Vic F. Garcia is a known motivational guru who trains people how to achieve success in various aspects of their life. After being saddled in debt in the early years of his marriage, he drew from his wealth of experience and has been motivating people to become !nancially wise through his company, Unleash International Corporation. With wife Avelynn, he has written a series of books on !nancial management.

Time to rethink your view of money

Photo to follow


Your traveling companion

MONEY MATTERS: Manage your loans

When people come to me for !nancial advice, they usually say, I am not rich. Theyll ask how to build their wealth so they can a"ord retirement, medical expenses, travel, or sending their kids to school.

A !nancial advisor is like a doctor. When you go to a doctor, you tell them how youre feeling and they give you a prescription. Its the same with !nancial advisors: we tell you how to reach !nancial wellness.

Those in their 20s who realize the need for !nancial advice are lucky. Usually, people start thinking about it only in their late 30s. Building your personal wealth is just like building a house it takes time. Here are some helpful tips to consider:

1. Make a commitment.When it comes to money, it takes discipline. Review your budget and spending habits and then set your !nancial goals. And when it comes to savings, it takes serious commitment, just like in a marriage. Sign up for an automatic savings plan.

2. Be money alert.Be on the look out for !nancial opportunities to make your money grow. Read up on the latest !nancial instruments out in the market.

3. Not all loans are created equal.There are good loans and there

are bad loans. The best loans are mortgage loans because property values appreciate. Bad loans are those that fund expenses such as credit cards, or things you buy that dont add up to your net worth. For example, some borrow to buy appliances these things depreciate.

4. Do your homework.When taking out a bank loan, do some computations !rst. Borrowing entails risks. If youre borrowing for your business needs, make sure that your business plan takes into account the loan amount that your company can absorb and pay with earnings. If youre borrowing for personal needs, check !rst if you can a"ord the loan, or for larger amounts, if its better to own instead of rent/lease.

5. Think of the proverbial rainy days.A common mistake among OFWs is keeping little amount of money for themselves and sending everything to their families back home. Their families, however, spend mindlessly. When OFWs retire, they usually end up going home without savings.

Whether or not youre an OFW, you should always save at least 20% of your income and not touch it. Have an emergency fund thats good for 3-6 months or longer, in case something happens and you have to stop working.

For veterinarian and savvy entrepreneur Maritess Amante, convenience is key in banking.

Mrs. Amante is among the !rst to open an account in PSBank Quezon Avenue Branch in 2004. Over the past ten years, this relationship has grown: she now has a PSBank Premium Checking account for her SME business, and is also a three-time client of PSBank Auto Loan. Her husband and son also maintain personal savings accounts in PSBank.

Both licensed veterinarians, the Amantes built Medeqqs Trading, a thriving veterinary drug supply enterprise. She also has an orchid farm in Marilao, Bulacan and uses the Hyundai Starex she got from one of her auto loans for safely transporting her orchids.

Mrs. Amante also bought a new pickup truck for Medeqqs Trading, which supplies to Bulacan and Tarlac, and a third car for her elderly fathers personal use.

The Amantes passion for animals also spawned their newest venture: duck egg production. We are looking for a new facility that can support our expansion goals, she says.

Mrs. Amante says what drew her to PSBank is convenience. I no longer busy myself looking for a reliable agent of whatever vehicle I want. PSBank has the connections, and the processing is fast and easy, she enthuses.

The loyal PSBank client also enjoys long drives out of town along with her extended family, including her uncles and cousins. And in all these adventures, PSBank is there for the journey.

Rowena Ro Suarez started showing her entrepreneurial spirit as a child selling knick-knacks brought from family travels to her classmates. While attending college at De La Salle University, she opened Ritratto, a fashion retail store, which she ran until she shifted to a career in !nancial planning in 2004. As a Certi!ed Wealth Manager, she has o"ered a range of !nancial advice to over 500 clients.

The road to financial wellness


MONEY MATTERS: Invest in the future

There are typically two categories of people who approach me: those who want to preserve their wealth, and those who have yet to create and grow theirs.

I always say that money is but a tool, never a goal. To make the most out of money, you should save and invest it in the best way to achieve your goal.

I know a janitor who was able to send all his children to school, own a home and a car, even set up his own business. How was he able to do it? He saved whatever he could and invested it in small pieces of property. Over time, his investments grew large enough to a"ord him and his family a comfortable life.

Here are some practical tips to make your money grow:

1. Know your goals and risk appetite.Your goals can be measured. Compare the future cost of your goals with what you have to start with and what you can a"ord to add periodically. With little math, you can determine how much your money will need to earn to reach your goals. Such returns will also have to be balanced with the level of risks you are willing to take.

2. Ask yourself if you are all SET to invest directly.Whether in !nancial securities or in a business, investing requires that you have the Size of funds, Expertise in investing and Time to manage your investments directly 24/7. Otherwise, you should invest indirectly by hiring a fund manager (i.e. buying into pooled funds) or hiring a business manager.

3. Before you invest, investigate.Even the Securities and Exchange Commission (SEC) advises knowing !rst about an investment before plunking in your hard-earned savings. Shop around; there may be many types of investment to choose from. Match also the return and risk pro!les of the investment with your own pro!le.

4. Manage risks.The best way to manage risk is to spread your investment over

many investment outlets, also known as diversi!cation. Dont put all your eggs in one basket. With some investments like pooled funds, diversi!cation is required by regulators. Mutual funds and unit investment trust funds, for example, cannot invest more than 15% of their net assets in any one investee company.

5. Monitor performance.To know if you are on track with your goals and your desired risk levels, continually monitor your investment performance. Initially, you will need to do this frequently, like monthly. Eventually, as you get the hang of it, you could monitor more infrequently, like quarterly or even semi-annually. But always keep your eyes on your goals and not the tool, which is money.

Efren Ll. Cruz is chairman and president of his own company, Personal Finance Advisers Philippines Corporation. He set up his own company after his position in a foreign bank in the country was declared redundant during the 2008 global !nancial crisis. Prior to setting up his own company, Efren had over 25 years of experience in !nancial services, 18 years of which was in mutual funds. During this time, he wrote two bestselling books, Pwede Na! The Complete Pinoy Guide to Personal Finance and Pwede Na! The Complete Pinoy Guide to Retirement and Estate Planning. Efren devotes his time to promoting !nancial literacy through personal !nance trainings and writing for various publications, including the Philippine Daily Inquirer.

Making your money grow

I always say investing is like growing a tree you should have started planting it many years ago.


Corporate Social Responsibility

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Risk ManagementResponsibility for managing risks rests on every PSBank employee. Our Board and senior management are actively involved in planning, approving, reviewing, and assessing risks through various committees.

In 2013, we implemented a facility risk rating model for our SME loans as an additional tool to our existing borrower risk rating model and qualitative assessment for credit extension. We also enhanced stress testing models and implemented stress limits for consumer loans.

RISK MANAGEMENT STRUCTUREThe Board of Directors takes the lead in all major initiatives. It approves broad risk management strategies and policies, and ensures that these are consistent with the Banks overall objectives.

The Risk Oversight Committee (ROC) is comprised of at least three members of the Board, including at least one independent director, and a chairperson who is a non-executive member. They possess expertise and knowledge of the Banks risk exposures, which enable them to develop appropriate strategies for preventing or minimizing the impact of losses.

The Board may also appoint non-Directors to the ROC as part of the Metrobank Groups risk oversight measures. However, only Bank Directors shall be considered as voting members of the ROC. Nonvoting members are appointed in an advisory capacity.

Overall responsibility for the Banks risk management process rests with the ROC. It formulates policies and strategies to identify, measure, manage and limit the Banks risks. The ROC ensures that the system of limits approved by the Board remains e"ective. It also makes certain that limits are observed and that immediate corrective actions are taken whenever needed. The Risk ManagementO#ce (RMO), together with the

President, various committees and management, support the ROC in the ful!llment of its duties and responsibilities.

RMO is independent from executive functions and business line responsibilities, operations and revenue-generating functions. It reports directly to the Board through the ROC.

The RMO supports the ROC in carrying out its responsibilities by:

t"OBMZ[JOHDPNNVOJDBUJOHimplementing and maintaining the risk management policies approved by the ROC and the Board;t4QFBSIFBEJOHUIFSFHVMBSSFWJFXPGthe Banks risk management policies and elevating recommendations that enhance the risk management process to the ROC and the Board, for their approval; andt&OTVSJOHUIBUUIFSJTLTBSJTJOHfrom the Banks activities are identi!ed, measured, analyzed, reported and understood by risk takers, management, and the Board. It analyzes limit exceptions and recommends enhancements to the limits structure.

Risk Management is responsible for:tJEFOUJGZJOHUIFLFZSJTLFYQPTVSFTand assessing and measuring the extent of risk exposures of the bank and its trust operations;tNPOJUPSJOHUIFSJTLFYQPTVSFTBOEdetermining the corresponding capital requirement in accordance with the Basel III capital adequacy framework and based on the Banks internal capital adequacy assessment on an ongoing basis;tNPOJUPSJOHBOEBTTFTTJOHdecisions to accept particular risks whether these are consistent with Board-approved policies on risk tolerance and the e"ectiveness of the corresponding risk mitigation

measures; andtSFQPSUJOHPOBSFHVMBSCBTJTUP4FOJPSManagement and the Board the results of assessment and monitoring.

VARIOUS TYPES OF RISKCredit RiskThis is the risk where a counterparty fails to meet its contractual obligation. PSBanks lending business follows credit policy guidelines set by the Board,ROC, and RMO. These guidelines serve as the Banks minimum standards for extending credit. Everyone engaged in the credit process are required tounderstand and adhere to these policies.

PSBanks product manuals contain business plans and de!ne the business parameters by which credit activity is to be performed. Before extending a loan, the Bank observes a system of checks and balances, including the approval of at least two credit o#cers through the Credit Committee (Crecom), Executive Committee (Excom), or the Board. The ROC reviews the Banks business strategies and ensures that revenue-generating activities meet risk standards. PSBank holds regular audit across the organization. Its Board through the Excom, Crecom, and ROC ensures that all business segments follow sound credit policies and practices.

The Bank manages risk concentration by type of individual or group of borrowers, by geographical region, and by industry sector. It assesses the credit quality of !nancial assets using the Bangko Sentral ng Pilipinas (BSP) credit classi!cations. The Bank uses credit scoring models and decision systems for consumer loans, and borrower risk rating and facility risk rating models for SME loans, as approved by the Board.

Risk Management


Risk Management

The Bank carries out stress testing analyses using Board-approved statistical models relating the default trends to macroeconomic indicators. In 2013, enhanced stress testing models and stress limits were implemented for consumer loans.

Market RiskThis covers the areas of trading, interest rate, and liquidity risks. Trading market risk is the risk to earnings and capital arising from changes in the value of traded portfolios of !nancial instruments. Interest rate risk arises from movements in interest rates. Liquidity risk is the inability to meet obligations when they fall due without incurring unacceptable losses.

The Banks market risk policies and implementing guidelines are regularly reviewed by the Assets & Liabilities Committee (ALCO), ROC and the Board to ensure that these are up-to-date and in line with changes in the economy, environment and regulations.

The ROC and the Board set the comprehensive market risk limit structure and de!ne the parameters of market activities that the Bank can engage in. The Bank utilizes various measurement and monitoring tools to ensure risk-taking activities are managed within instituted market risk parameters.

Trading Market RiskPSBanks trading portfolios are currently composed of peso and dollar-denominated sovereign debt securities that are marked-to-market daily.

PSBank uses Value-at-Risk (VaR) to measure the extent of market risk exposure arising from these portfolios. VaR is a statistical measure that calculates the maximum potential loss from a portfolio over a holding period, within a given con!dence level.

Our current VaR model is based on a historical simulation methodology with a one-day holding period and a 99% con!dence level.

The Bank also performs back testing to validate the VaR model, and stress testing to determine the impact of extreme market movements on our portfolios. It has established position limits for its trading portfolios and closely monitors its daily pro!t and loss against loss triggers and stop-loss limits.

To a certain extent, the Bank also carries foreign exchange (FX) risk. It is the Banks policy to maintain exposures within approved position, stop loss, loss trigger, VaR limits and to remain within regulatory guidelines. The Bank also uses VaR to measure market risk arising from its FX exposure. The Bank uses its BSP-approved Type 3 Derivative License for plain vanilla FX forwards to manage its FX risk against adverse exchange rate movements.

Structural Interest Rate RiskThe interest rate sensitivity gap report measures interest rate risk by identifying gaps between repricing dates of assets and liabilities. The Banks sensitivity gap model calculates the e"ect of possible rate movements on its interest rate pro!le.PSBank uses the sensitivity gap model to estimate its Earnings-At-Risk (EAR) should interest rates move against our interest rate pro!le. Our EAR limits are based on a percentage of PSBanks projected earnings and capital for the year. We also perform stress-testing analysis to measure the impact of various scenarios based on interest rate volatility and shift in the yield curve.

The ALCO is responsible for managing PSBanks structural interest rate exposure. Its goal is to achieve a desired overall interest rate pro!le

while remaining $exible to interest rate movements and changes in economic conditions. RMO and ROC review and oversee its interest rate risks.

Liquidity RiskIn managing its liquidity position, the Bank ensures that it has more than adequate funds to meet its maturing obligations. PSBank uses the MaximumCumulative Out$ow (MCO) Model to measure liquidity risk arising from the mismatches of its assets and liabilities.

The Bank administers stress testing to assess its funding needs and strategies under di"erent conditions. Stress testing enables the Bank to gauge its capacity to withstand both temporary and long-term liquidity disruptions.The Liquidity Contingency Funding Plan (LCFP) helps the Bank anticipate how to manage a liquidity crisis under various stress scenarios. Liquidity limits for normal and stress conditions cap the projected out$ows on a cumulative and per tenor basis.

PSBank discourages dependence on Large Funds Providers (LFPs) and monitors the deposit funding concentrations so that it will not be vulnerable to a substantial drop in deposit level should there be an out$ow of large deposits.ALCO is responsible for managing the liquidity of PSBank while RMO and ROC review and oversee the Banks overall liquidity risk management.

Operational RiskOperational Risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. To mitigate these, PSBank constantly strives to maintain our strong control culture, prudent use of technology and e"ective internal control system, which are key factors towards continuous self-improvement under a no-surprise

operating environment.

PSBanks Board-approved bankwide organizational chart clearly establishes areas of management responsibility, accountability and reporting lines for all its senior o#cers. Operational risk management policies and frameworks are continuously reviewed and updated, subject to ROC and Board approvals to ensure that they remain relevant and e"ective.

The Banks products and operating manuals, policies and procedures spell out internal controls implemented by its business and operating support units. Its Internal Audit Group (IAG) provides independent reasonable assurance on control adequacy and compliance with these manuals. PSBank continually identi!es and assesses operational risks across the organization and develops controls to mitigate and manage them as part of continuing e"orts to enhance its Operational Risk Management Framework.

To ensure that the Bank manages all operational risks adequately, specialized functions are engaged in risk management. These include Information Technology, Information Security, Systems Quality Assurance, Financial Control, Legal, Compliance, Human Resources and Security Command. IAG regularly reports to the Boards Audit Committee on the e"ectiveness of internal controls.

The Bank likewise has a Business Continuity Plan and a Disaster Recovery Program that are reviewed and tested annually on a per segment and bankwidebasis to ensure their e"ectiveness in case of business disruptions, system failures and disasters.Technology RiskTechnology risk is the risk to earnings

or capital arising from de!ciencies in systems design, implementation, maintenance of systems or equipment and the failure to establish adequate security measures, contingency plans, testing and auditing standards.

To provide simpler, faster, more convenient and secured banking services to its growing clientele and to avail of an advanced management information system that enables the Bank to make fast and well-informed business decisions, it continually invests in Information Technology by venturing into core business process automations, key system enhancements, and information security solutions.

Given this heavily automated operating environment, PSBank makes sure that it continuously identi!es and quanti!es risks to the greatest extent possible and establishes controls to manage technology-associated risks through e"ective planning, proper implementation, periodic measurement and monitoring of performance.

Legal RiskLegal risk is the potential loss due to nonexistent, incomplete, incorrect, and unenforceable documentation that the Bank uses to protect and enforce its rights under contracts and obligations.

A legal review process, which its Legal Department performs, is the primary control mechanism for this type of risk to ensure that the Banks contracts and documentation adequately protects its interests and complies with applicable legal and regulatory requirements.

Regulatory RiskRegulatory Risk, also known as Compliance Risk, covers the potential loss from non-compliance with laws, rules and regulations, policies and

procedures, and ethical standards.PSBank recognizes that compliance risk can diminish its reputation, reduce its franchise value, limit its business opportunities, and reduce its potential for expansion. Thus, PSBank, guided by its Compliance O#ce, continuously promotes a culture of compliance.

Strategic RiskStrategic risk is the current and prospective impact on earnings or capital arising from adverse business decisions, improper resolution of con$icts, and slow response to industry changes.

Strategic risk can in$uence the Banks long-term goals, business strategies, and resources. Thus, the Bank utilizes both tangible and intangible resources to carry out its business strategies. These include communication channels, operating systems, delivery networks, and managerial capacities and capabilities.

Reputational RiskReputational risk is the current and prospective impact on earnings or capital arising from negative public opinion. This a"ects PSBanks ability to establish new relationships or services, or manage existing relationships. The risk may expose the Bank to litigation, !nancial loss, or a decline in customer base.All employees are responsible for building PSBanks reputation and exercising an abundance of caution when dealing with customers and communities.

For a complete discussion of PSBanks capital details, please refer to the Supplementary Management Discussion and Notes to the Financial Statements on Financial Risk Management Policies and Objectives.


Corporate Governance

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BOARD OF DIRECTORS

PRESIDENT

Management Committees Credit Committee

Assets and Liabilities Committee Anti-Money Laundering Compliance Committee

Outsourcing Oversight Committee IT Steering Committee

Emergency Committee Policy Committee

All Business, Finance, Operations, Security, and other support groups

Executive Committee

Nominations Committee

Corporate Governance Committee

Compliance

Related Party Transactions

Compliance

Trust Committee

Audit Committee

Risk Oversight Committee

Compensation/Remunerations Committee

Trust

Internal Audit

RMO




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animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Temporibus autem quibusdam et aut o#ciis debitis aut rerum necessitatibus saepe eveniet ut et voluptates repudiandae sint et molestiae non recusandae. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.


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At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui o#cia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Temporibus autem quibusdam et aut o#ciis debitis aut rerum necessitatibus saepe eveniet ut et voluptates repudiandae sint et molestiae non recusandae. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.


Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto beatae vitae dicta sunt explicabo. Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione voluptatem sequi nesciunt. Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, con-sectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt ut labore et dolore magnam aliquam quaerat volup-tatem. Ut enim ad minima veniam, quis nostrum exercitationem ullam corporis suscipit laboriosam, nisi ut aliquid ex ea commodi consequatur? Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum fugiat quo voluptas nulla pariatur?

At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui o#cia deserunt mollitia

enim ad minima veniam, quis nostrum exercitationem ullam corporis suscipit laboriosam, nisi ut aliquid ex ea commodi consequatur? Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum fugiat quo voluptas nulla pariatur?



Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto beatae vitae dicta sunt explicabo. Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione voluptatem sequi nesciunt. Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, con-sectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt ut labore et dolore magnam aliquam quaerat volup-tatem. Ut enim ad minima veniam, quis nostrum exercitationem ullam corporis suscipit laboriosam, nisi ut aliquid ex ea commodi consequatur? Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum fugiat quo voluptas nulla pariatur?

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PSB Regular and Special Board Meeting Attendance Year 2013Board of DirectorsName Meeting Number of ASM Attended Meetings

Jose T. Pardo, 13 13 Y Chairman, Independent Director

Arthur V. T, 12 11 Y Vice Chairman

Samson C. Lim, 11 11 Y Independent Director

David T. Go* 3 3 N/A Independent Director

Benedicto Jose R. Arcinas, 12 13 Y Independent Director

Joaquin Aligguy 13 13 Y

Ma. Theresa G. Barretto 13 13 Y

Margaret Ty Cham 12 13 Y

Pascual M. Garcia III* 3 3 N/A

Vicente R. Cuna, Jr.** 10 10 Y

Jeanne Frances T. Chua*** 10 10 Y

* Term expired in April 2013** Appointed as Director / President in April 2013*** Appointed as Member in April 2013

Executive CommitteeName Meeting Number of Attended Meetings

Arthur V. T, 1 1 Chairman

Vicente R. Cuna, Jr. 1 1

Margaret Ty Cham 1 1

Ma. Theresa G. Barretto* 1 1

Rosanna F. De Vera, 1 1 Metrobank Representative

Maris Lou S.Velicaria, 1 1 PSBank Representative

Paul Roderick Ysmael, 1 1 Secretary

* Term expired in November 2013** Excludes 31 special routing of accounts for 2013



Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui o#cia deserunt mol-lit anim id est laborum.

Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto beatae vitae dicta sunt explicabo. Nemo enim ipsam volup-tatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione voluptatem sequi nesciunt. Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt ut labore et dolore magnam aliquam quaerat voluptatem. Ut enim ad minima veniam, quis nostrum exercitationem ullam corporis suscipit laboriosam, nisi ut aliquid ex ea commodi consequatur? Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum fugiat quo voluptas nulla pariatur?

At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupidi-tate non provident, similique sunt in culpa qui o#cia dese-

omnis voluptas assumenda est, omnis dolor repellendus. Tem-poribus autem quibusdam et aut o#ciis debitis aut rerum ne-cessitatibus saepe eveniet ut et voluptates repudiandae sint et molestiae non recusandae. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.


Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto beatae vitae dicta sunt explicabo. Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione voluptatem sequi nesciunt. Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt ut labore et dolore magnam aliquam quaerat voluptatem. Ut enim ad minima veniam, quis nostrum exercitationem ullam corporis suscipit laboriosam, nisi ut aliquid ex ea commodi consequatur? Quis

runt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Tem-poribus autem quibusdam et aut o#ciis debitis aut rerum ne-cessitatibus saepe eveniet ut et voluptates repudiandae sint et molestiae non recusandae. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.



At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupidi-tate non provident, similique sunt in culpa qui o#cia dese-runt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus,

autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum fugiat quo voluptas nulla pariatur?



Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto beatae vitae dicta sunt explicabo. Nemo enim ipsam volup-tatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione voluptatem sequi nesciunt. Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt ut labore et dolore magnam aliquam quaerat voluptatem. Ut enim ad minima veniam, quis nostrum exercitationem ullam corporis suscipit laboriosam, nisi ut aliquid ex ea commodi consequatur? Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem

Risk Oversight CommitteeName Meeting Number of Attended Meetings

Benedicto Jose R. Arcinas, 10 12 Chairman, Independent Director

Pascual M. Garcia III* 3 4

Vicente R. Cuna, Jr.** 8 8

David T. Go* 3 4

Joaquin Aligguy 12 12

Bernardito M. Lapuz 10 12

Edmund A. Go 8 2

* Term expired in April 2013** Appointed as Member in April 2013

Audit CommitteeName Meeting Number of Attended Meetings

Jose T. Pardo, 14 14 Chairman, Independent Director

Samson C. Lim, 13 14 Independent Director


Emma B. Co, 14 14 Secretary, Chief Audit Executive





At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupidi-tate non provident, similique sunt in culpa qui o#cia dese-runt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Tem-poribus autem quibusdam et aut o#ciis debitis aut rerum ne-cessitatibus saepe eveniet ut et voluptates repudiandae sint et molestiae non recusandae. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.

tate non provident, similique sunt in culpa qui o#cia dese-runt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Tem-poribus autem quibusdam et aut o#ciis debitis aut rerum ne-cessitatibus saepe eveniet ut et voluptates repudiandae sint et molestiae non recusandae. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.


Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui o#cia deserunt mol-lit anim id est laborum.


At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupidi-

Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto beatae vitae dicta sunt explicabo. Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione voluptatem sequi nesciunt. Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt ut labore et dolore magnam aliquam quaerat voluptatem. Ut enim ad minima veniam, quis nostrum exercitationem ullam corporis suscipit laboriosam, nisi ut aliquid ex ea commodi consequatur? Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum fugiat quo voluptas nulla pariatur?

At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui o#cia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Temporibus autem quibusdam et aut o#ciis debitis aut rerum necessitatibus saepe eveniet ut et

Corporate Governance CommitteeName Meeting Number of Attended Meetings

Samson C. Lim, 10 12 Chairman, Independent Director

Jose T. Pardo, 12 12 Independent Director

David T. Go* 2 4

Jeanne Frances T. Chua** 8 8


Gilbert L. Nunag, 12 12 Secretary, Chief Compliance O#cer

* Term expired in April 2013** Appointed as Member in April 2013

Trust CommitteeName Meeting Number of Attended Meetings

David T. Go*, 2 2 Chairman

Benedicto Jose R. Arcinas**, 6 6 Chairman, Independent Director

Ma. Theresa G. Barretto 6 6

Pascual M. Garcia III* 2 2

Vicente R. Cuna, Jr.*** 4 4

Jeanne Frances T. Chua*** 4 4

Edmund A. Go 5 6 Adviser

Stella A. Sampayan, 3 4 Se

psbank annual report 2013

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countrys consumer

consumer markets

retail bank of choice

listed thrift bank

superior products

founder of metropolitan

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