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	REGULAR CASH DIVIDEND DECLARATION
	During its regular meeting held on December 16,2009, the Board of Directors of BPI declared a regular cash dividend of P0.90 per share for the second semester of the year 2009, on the total outstanding common shares of the bank. This will be payable to all common shares stockholders of record as of the 15th day from the receipt of the approval by the Bangko Sentral ng Pilipinas of the said dividend declaration and distributable on the 15th day from said record date.
	ANNUAL STOCKHOLDERS' MEETING ANNOUNCEMENT
	The Board of Directors of BPI approved the holding of the bank's Annual Stockholders' Meeting on April 15, 2010 at 9:00 a.m. at the Grand Ballroom, Hotel Intercontinental, Makati City. Below is the proposed agenda for the said meeting: 1. Calling of Meeting to Order 2. Certification of Notice 3. Determination and Declaration of Quorum 4. Approval of the Minutes of the Annual Meeting of the Stockholders on March 31, 2009 5. Reading of Annual Report and Approval of the Bank's Statement of Condition as of December 31, 2009 incorporated in the Annual Report 6. Approval and Confirmation of all Acts during the past year of the Board of Directors, Executive Committee, and all other Board and Management Committees and Officers of BPI 7. Election of 15 Members of the Board of Directors 8. Election of External Auditors and Fixing their Remuneration 9. Declaration of Stock Dividend 10. Directors' Bonus 11. Other Matters The Board also approved that all nominations to the BPI Board of Directors together with the written acceptance of all the nominees must be received and acknowledged by bank's Office of the Corporate Secretary not later than the end of business hours of January 27, 2010. The Stock and Transfer Book of BPI will be closed 30 days before the Stockholders' meeting or starting March 16, 2010. Accordingly, only stockholders of record as of March 16, 2010 will be entitled to notice and to vote at said meeting.
	PRESS STATEMENT JANUARY TO SEPTEMBER OPERATING PERFORMANCE
	The Bank of the Philippine Islands (BPI) generated a net income of P2.0 billion for the third quarter of 2009, 35% higher than the same period last year. This operating result included an additional impairment loss of P100 million for typhoon related accounts and higher manpower costs from the increased retirement fund expense as well as collective bargaining agreement (CBA) related payments at the BPI parent company. Revenues were up by 11% with improvements of 6% and 19% in net interest income and non-interest income, respectively. Non-interest income was ahead of last year despite the lower profits from asset sales. This was due to a major turnaround in income from foreign exchange and securities trading which recorded some trading losses last year. Net income for the nine-month period reached P7.3 billion, a 38% increase over last year. Return on equity was 15% while return on assets stood at 1.5%. Total revenues grew by 16% as both the net interest income and non interest income grew by 14% and 20%, respectively. The growth in net interest income was brought about by an 8% expansion in average asset base as well as a 13 basis points widening in net spreads. Average loans and deposits grew by 8% and 7%, respectively. In addition, loan yields improved by 27 basis points coupled with a decrease in funding cost. Non interest income benefited from the declining interest rate environment which provided the bank the opportunity to sell down part of its securities inventory and generate bigger trading gains. Service charges and commissions, and insurance income likewise posted increases. Operating costs were 6% above the previous year due to manpower and premises-related expenses. Impairment losses reached P2.1 billion, or P547 million higher, with additional provisions set up for corporate accounts as well as possible credit losses that may arise from the recent typhoons. Total resources went up by 9% to P665 billion on a year on year basis. Deposits at P515 billion registered a 4% increase while assets held in trust posted a significant increase of 46% to P439 billion. Total customer funds managed by the bank thus amounted to P954 billion. ………………………. While average loans were up by 8%, outstanding net loans showed a slight contraction of about 3% due to the softer corporate demand. Large scale industries which comprise 56% of total loans showed a contraction in its outstanding portfolio in view of the relative liquidity in the system and their access to the capital markets. In 2008 and 2009, P159 billion in notes and bonds were issued by corporations (excluding banks). Middle market loans in the provincial areas though registered a modest increase of 4%. The small and medium scale industries also managed to grow by 3%, of which small scale industries contributed a faster growth rate of 10%. Consumer loans, on the other hand, consistently delivered double digit growth of 14%. As in the past, credit card receivables and retail mortgages turned in a 20% and 15% increase, respectively. In September, BPI and the Philippine American Life and General Insurance Company (Philamlife) signed a strategic bancassurance joint venture, wherein Philamlife agreed to acquire a 51% stake in Ayala Life Assurance, Inc. (Ayala Life). The joint venture is expected to benefit from the combined synergies, first-class resources and strength of the two leading companies in the Philippines’ financial industry. There are significant cross selling opportunities on both sides where Philamlife will have access to the bank’s customer base for life insurance products and BPI will have reciprocal access to Philamlife's customers for banking products. In the aftermath of the recent typhoons, BPI’s ‘bank anywhere’ initiative and 24/7 service allowed BPI customers to transact with any BPI or BPI Family branch or through self-service – BPI Express Online, BPI Express Phone and BPI Express Mobile anytime. These initiatives were implemented in 2008 as part of the bank’s major infrastructure change to enhance total customer experience. This is discussed in detail in BPI’s first Sustainability Report for 2008. President and CEO Aurelio R. Montinola III, in his message in said report, reported ‘Our sustainability framework focuses on four strategic themes where we feel we can make the most difference: total customer experience, reduction of our environmental footprints (energy and water consumption, waste management, resource efficiency), market expansion, and employee engagement in terms of human resource and community development.’
	BSP APPROVAL ON THE SALE/TRANSFER OF SHARES IN PILIPINAS SAVINGS BANK
	The Bank received on October 9, 2009 the approval of the Bangko Sentral ng Pilipinas on the sale/transfer of BPI's equity shares in Pilipinas Savings Bank, Inc. that is consistent with the agreed ownership structure of 40% each for BPI and Globe Telecom, Inc. and 20% for Ayala Corporation.
	PHILAMLIFE AND BPI ANNOUNCE STRATEGIC LIFE INSURANCE JOINT VENTURE
	Makati City, August 26, 2009. The Philippine American Life and General Insurance Company (Philamlife), the largest life insurer in the Philippines, and Bank of the Philippine Islands (BPI) have agreed to enter a strategic bancassurance joint venture. As a result, Philamlife has agreed to acquire a 51% stake in Ayala Life Assurance Inc. (Ayala Life), BPI’s life insurance subsidiary. Ayala Life will serve as the platform for BPI and Philamlife’s strategic bancassurance partnership. The joint venture is expected to benefit from the combined synergies, first-class resources and strength of two leading companies in the Philippines’ financial industry. Philamlife will bring insurance distribution, product development, and innovation to the joint venture, particularly in the area of bancassurance, while gaining exclusive access to BPI’s customer base via its extensive branch network. Philamlife’s President and CEO Trevor Bull said, “This partnership is a direct result of our strategy to focus on the core life insurance and wealth management business. Philamlife and BPI are strong and trusted brand names in the industry. This is an exciting and positive development that will significantly increase our distribution footprint and offer a substantially wider selection of quality life insurance products to BPI’s customers, which are keys to success under the growing popularity of bancassurance in the region.” BPI President and CEO Aurelio Montinola III said that this joint venture is fully in-line with BPI’s vision to offer a full range of financial products and services to its customers. He said, “We always look for quality partners and we are excited about the prospects of this partnership with Philamlife. We believe that there are significant cross selling opportunities on both sides. We feel that in the same way that Philamlife will have access to our customer base for life insurance products, BPI will have reciprocal access to Philamlife’s customers for banking products. ” Philamlife is currently in the process of becoming part of the AIA Group, subject to regulatory approvals. The AIA Group is a leadin pan-Asian life insurance organization with a unique heritage of serving the world’s most dynamic region for 90 years, with over US$60 billion in assets and a large base of over 20 million customers. With 158 years of experience in the local banking industry, BPI is one of the largest universal banks in the Philippines today, offering a whole breadth of financial services to both retail customers and corporate clients. BPI serves more than 3 million customers through its network of over 800 branches and 1,500 Automated Teller Machines (ATMs) nationwide. Ayala Life is the seventh largest life insurance company in the country today, with over Php1.8billion of gross premiums in 2008. For 2009, Ayala Life’s gross premiums for the first seven months have already reached Php2.6billion, up 140% year-to-date, as a result of strong bancassurance sales. With over 129,000 policies in-force, Ayala Life offers a wide range of products from pure protection to savings and investments for both individuals and corporate clients. The joint venture is subject to regulatory approvals. BPI Capital and ING acted as financial advisors to BPI while Deutsche Bank acted as sole financial advisor to Philamlife and AIA for this transaction.
	CASH DIVIDEND PAYMENT
	BPI has received the Bangko Sentral ng Pilipinas' approval on August 6, 2009 for the payment of the Php 0.90 regular cash dividend on the outstanding common shares of the capital stock for the first semester of 2009. In accordance with the BPI Board's resolution, the cash dividend is payable to all common shareholders of record as of August 21, 2009 and distributable/payable to the said stockholders on September 5, 2009.
	PRESS STATEMENT FIRST SEMESTER OPERATING PERFORMANCE
	Bank of the Philippine Islands (BPI) continued to deliver profitable growth in the first six months of the year notwithstanding the country's relatively weak GDP growth rate. BPI turned in a net income of P2.4 billion in the second quarter 2009, bringing the first semester total to P5.3 billion, 38.4% over the previous year. Return on equity and return on assets stood at 16.5% and 1.7%, respectively. Second quarter profits, although 15.9% lower than the first quarter 2009, were 6.1% higher than same period last year. While net interest spreads were narrower than the previous quarter, net interest income improved by 14.1% on a 10.1% expansion in average asset base. Trading income had also fallen by over 50% from the previous quarter but was compensated by non-recurring income from asset sales in the second quarter. The bank also wrote-off the deferred income tax component of a portion of its expiring Net Operating Loss Carryover (NOLCO) in the second quarter. Buoyed by its first quarter performance, first semester revenues were up by 19.2% over last year with positive contributions from both net interest and non-interest income. Net interest income gained 18.0%, boosted by the 7.5% growth in average asset base and the 31 basis points increase in net margin. BPI successfully lowered funding costs by 25 bps and kept asset yields stable even amid a declining interest rate environment. Non interest income likewise increased by 21.1% mainly from trading gains and higher service charges and commissions as well as insurance income. Operating costs were 6.6% ahead of the last year on higher manpower and premises expenses. The bank set aside P1.5 billion in impairment losses even as the net 30-day non-performing loan ratio fell to 2.8%, bringing reserve cover to 81.1%. Total resources at P719.0 billion expanded 14.8% propelled mainly by the 11.0% growth in deposits. Net loans grew at a modest rate of 4.9% on softer credit demand from the corporate segment and the P2.0 billion maturities in government promissory notes. BPI remains the largest bank in terms of market capitalization, at P136 billion at end June closing price of P42 per share. With a Basel 2 capital adequacy ratio of 15.2%, the bank declared a P0.90 per share regular cash dividend in June 2009. President Aurelio Montinola III, commenting on the first semester performance said. "We are encouraged by our strong first semester results which should buffer us for a less rosy second half. Loan growth has slackened due to borrower liquidity and cautiousness but we have prudentially added significant credit reserves to prepare for potentially challenging times. We recently won a Presidential Citation for Improving Access to Finance, and we are on track with our microfinance initiatives, having obtained BSP approval for the first mobile microfinance bank in the Philippines, in partnership with Globe Telecom and Ayala Corporation."
	CASH DIVIDEND DECLARATION
	During its regular meeting held on June 17, 2009, the Board of Directors of BPI declared a regular cash dividend of P 0.90 per share on the total outstanding common shares of the bank for the first semester of 2009. This will be payable to all common shares stockholders of record as of the 15th day from receipt by BPI of the approval by the Bangko Sentral ng Pilipinas of the said dividend and distributable on the 15th day from said record date.
	PRESS STATEMENT FIRST QUARTER OPERATING PERFORMANCE
	Bank of the Philippine Islands (BPI) recorded strong operating results in the first quarter with a net income of P2.9 billion, resulting from sustained business momentum in core market segments, better net interest spreads, and trading opportunities offered by the falling interest rate environment. The first quarter net income was an 86.1% improvement over the same period in 2008, mainly from the revenue increase of 32.2%. All categories of income recorded significant gains. Net interest income grew by 22.1% from last year’s level, boosted by the 5.0% expansion in the average asset base and the 57 basis increment in spreads. The wider interest margin was a result of higher asset yields, specifically on loans, and the lower cost of funds. Total resources as of end March reached P643.3 billion, 8.1% ahead of the previous year’s level. Lending activity remained buoyant and broad based despite a deliberate move at selective expansion. Net loans increased by 12.3% on a year on year basis notwithstanding P6.0 billion in maturing government promissory notes. Corporate and consumer loans posted growth rates of 13.8% and 18.9%, respectively. Credit card billings rose by 25% on more focused and effective marketing campaigns. Deposits expanded by 8.8% to P517.1 billion. The bank successfully increased the ratio of lower cost peso deposits to total peso deposits from 46% to 52%. Assets held in trust likewise grew by 20.7% to P333.1 billion. The remittance inflows serviced by the bank increased by over 20%, outpacing the industry growth rate of 2.5%. After four successive quarters of contracting trend, non-interest income scored a major turnaround with a 52.7% increase. The biggest gain was realized from securities trading income, as the bank capitalized on the declining interest rate environment. Foreign exchange income, service charges and commissions, the pre-tax income from insurance subsidiaries, credit card fees, and rental income on bank assets also delivered remarkable gains as well. Credit quality was generally stable notwithstanding the strong expansion in business volume. Net 30 day non-performing loans ratio stood at 3.26% in March, better than the 3.94% a year ago and the industry’s 3.73% as of February. The bank further strengthened its reserve position by providing P800 million in impairment losses for corporate and consumer loans to include among others, a collective impairment of exporter clients in the bank’s watch list category on the basis of historical probability of default. This loss provision was P414.6M higher than the previous year and brought reserve cover to 75.4%. Operating expenses increased by 9.7% on higher retirement expense accruals, the variable leased equipment depreciation, professional and management fees, prior period tax settlements and supervision fees. BPI President and Chief Executive Officer, Mr. Aurelio R. Montinola III commenting on the bank’s performance said, “We are extremely pleased with the bank’s strong first quarter results. Not only did it affirm the resilience of the local economy, it likewise validated the strength of our banking franchise and the value of our efforts to diversify our revenue base and improve our credit risk profile. However, we acknowledge the severity of the present crisis, and that the local economy and the banking industry remain vulnerable to a further deterioration in global economic activity. Signs of stabilization overseas appear tentative and can not be construed as the beginning of an enduring recovery. We continue to be vigilant as we brace ourselves for any adverse turn in Philippine economic circumstances in the months ahead.” BPI maintains the largest market capitalization of P110.3 billion in the industry with a capital adequacy ratio of 14.9% at end-March. The bank was awarded the Best Retail Bank in the Philippines, 2008, by The Asian Banker for the 7th year and the Best Emerging Market Bank in Philippines for the 11th year.
	ANNUAL STOCKHOLDERS' MEETING, MARCH 31, 2009 SHAREHOLDERS' APPROVAL OF: ELECTION OF DIRECTORS/OFFICERS/COMMITTEE MEMBERS, APPOINTMENT OF EXTERNAL AUDITORS, INCREASE IN AUTHORIZED CAPITAL STOCK AMENDMENT TO ARTICLE 7TH OF THE AMENDED ARTICLES OF INCORPORATION, STOCK DIVIDEND DECLARATION
	The stockholders of the bank, at its annual meeting on March 31, 2009 approved the following: (a) The election/re-election of the following as Members of the Board of Directors of BPI for the term 2009-2010 and to hold office as such until their successors are duly elected and qualified: Jaime Augusto Zobel de Ayala II Fernando Zobel de Ayala Aurelio R. Montinola III Gerardo C. Ablaza, Jr. Emily A. Abrera Lilia R. Bautista Romeo L. Bernardo Chng Sok Hui Octavio V. Espiritu Rebecca G. Fernando Xavier P. Loinaz Ma Yuen Lin Annie Mercedita S. Nolledo Oscar S. Reyes Wong Ann Chai Of the above elected directors, the following qualified and have been elected as independent directors as defined under the provision of SRC Rule 38 (Requirements on Nomination & Election of Independent Directors) of the Securities Regulation Code, as amended, to wit: Lilia R. Bautista Romeo L. Bernardo Octavio V. Espiritu Xavier P. Loinaz The re-appointment of Isla Lipana & Co. as the External Auditors of BPI for the year 2009. Also, at the Organizational Meeting of the Board of Directors, following the said Stockholders’ Meeting, the following were elected/re-elected as Chairman and Officers of BPI: 1. Jaime Augusto Zobel de Ayala II - Chairman of the Board 2. Aurelio R. Montinola III - President 3. Antonio V. Paner - Treasurer 4. Carlos B. Aquino - Corporate Secretary 5. Santiago L. Garcia, Jr. - Asst. Corporate Secretary Further, at the same Organizational Meeting of the Board of Directors, the following Committees were reconstituted: Executive Committee i. Jaime Augusto Zobel de Ayala II - Chairman ii. Fernando Zobel de Ayala - Vice-Chairman iii. Aurelio R. Montinola III - Member & President iv. Octavio V. Espiritu - Member (Independent) v. Rebecca G. Fernando - Member vi. Xavier P. Loinaz - Member (Independent) vii. Wong Ann Chai - Member Alternate Members: i. Gerardo C. Ablaza, Jr. (alternate for Jaime Augusto Zobel de Ayala II, Fernando Zobel de Ayala and Aurelio R. Montinola III) ii. Chng Sok Hui (alternate for Wong Ann Chai) 2. Audit Committee i. Octavio V. Espiritu - Chairman (Independent) ii. Lilia R. Bautista - Member (Independent) iii. Chng Sok Hui - Member iv. Oscar S. Reyes - Member 3. Corporate Governance Committee i. Lilia R. Bautista - Chairman (Independent) ii. Romeo L. Bernardo - Member (Independent) iii. Chng Sok Hui - Member iv. Mercedita S. Nolledo - Member v. Oscar S. Reyes - Member 4. Nomination Committee i. Jaime Augusto Zobel de Ayala II - Chairman ii. Romeo L. Bernardo - Member (Independent) iii. Xavier P. Loinaz - Member (Independent) iv. Wong Ann Chai - Member 5. Personnel and Compensation Committee i. Fernando Zobel de Ayala - Chairman ii. Romeo L. Bernardo - Member (Independent) iii. Oscar S. Reyes - Member iv. Wong Ann Chai - Member 6. Risk Management Committee i. Octavio V. Espiritu - Chairman (Independent) ii. Aurelio R. Montinola III - Member & President iii. Gerardo C. Ablaza, Jr. - Member iv. Romeo L. Bernardo - Member (Independent) v. Chng Sok Hui - Member 7. Trust Committee i. Mercedita S. Nolledo - Chairman ii. Fernando Zobel de Ayala - Vice-Chairman iii. Aurelio R. Montinola III - Member & President iv. Gerardo C. Ablaza, Jr. - Member v. Romeo L. Bernardo - Member (Independent) vi. Rebecca G. Fernando - Member vii. Xavier P. Loinaz - Member (Independent) viii. Ma Yuen Lin Annie - Member ix. Adelbert A. Legasto - Member & Trust Officer 8. Retirement/Pension Committee i. Mercedita S. Nolledo - Chairman ii. Aurelio R. Montinola III - Member & President iii. Rebecca G. Fernando - Member iv. Lourdes B. Orosa - Member 9. Credit Committee i. Aurelio R. Montinola III - Chairman & President ii. Gil A. Buenaventura - Vice-Chairman iii. Elvira V. Mayo - Member v. Mario B. Palou - Member vi. Alberto E. Pascual - Member vii. Angela C. Santiano - Member
	PRESS STATEMENT ANNUAL STOCKHOLDERS' MEETING MARCH 31, 2009
	The Bank of the Philippine Islands (BPI) held its annual stockholders' meeting on March 31, 2009 with its Chairman, Jaime Augusto Zobel de Ayala II and President, Aurelio R. Montinola III, presenting the bank’s major accomplishments in 2008. In his message, Mr. Zobel reported that the economic events in 2008 challenged BPI’s governance and risk management structures and tested the effectiveness of its policies. BPI however avoided any direct exposure to the financial institutions that failed globally and to the subprime mortgage industry in general, and managed to preserve the Bank’s and the customer’s assets. While BPI’s share price dropped by 24.9% with the stock market decline, BPI emerged as one of the best performing stocks, in relative terms, not only in the Philippine Stock Exchange composite index but also in the Morgan Stanley Composite Index (MSCI). The Bank traded at a premium price of twice the book value and ended the year with a market capitalization of P125 billion, the largest in the banking industry. The unprecedented market price movements of securities likewise resulted in a 35.8% decline in the Bank’s net income to P6.4 billion. The Bank however remained the most profitable among its peers with a return on equity of 10%, and even without restating its financial statements under the revised IAS 39 rule. In recent years, BPI increased its focus on Microfinance and the overseas Filipino communities, both growing segments of the Philippine economy. The Bank is thus seeking the approval of the BSP to establish a Microfinance Bank together with Ayala Corporation and Globe Telecom. As the Top Commercial Bank for servicing overseas Filipino remittances into the country for the past three years and earning the first ever BSP Hall of Fame award, BPI will continue to provide an expanded array of financial products and services to overseas Filipinos. BPI’s operating results, while mixed, reflected the strength of the Bank’s risk management practices and the resilience of its core business, according to Mr. Montinola. Measured steps were taken to grow loans by 17%, the second consecutive year of double digit expansion. Strong business volume growth was likewise registered in remittances, card banking and asset management. The Bank’s unwavering commitment to provide the ultimate banking experience even during tough times was embodied in its institutional campaign, ‘Expect more in life with BPI’. This campaign offers products and services with additional features/value to the customers. Moreover, the Bank remained liquid, solvent and profitable. As such, BPI is the only bank with a C and a C- credit rating from Fitch and Moody’s, respectively, the highest credit rating among Philippine banks. The Bank also maintained its BSP CAMELS rating of 4, the highest among local banks. BPI also merited several best bank awards from reputable foreign institutions like Global Finance, Finance Asia, The Asset, The Banker and Asiamoney, and the Best Retail Bank from The Asian Banker for the seventh year in a row. While the bank views 2009 with caution, BPI is firmly committed to support economic growth by keeping its lending window open, while exercising credit discipline to avoid a further deterioration in non performing assets. The Bank will continue to conduct business in a transparent manner while pursuing responsible risk management. It will manage customers’ funds prudently and exercise vigilance in growing its businesses. It will likewise step up its corporate social responsibility with the mobile microfinance bank, and ‘Go Green’ through Sustainability and Energy Savings projects.
	CASH DIVIDEND PAYMENT
	BPI has received the Bangko Sentral ng Pilipinas' approval on February 18, 2009 for the payment of the Php 0.90 regular cash dividend on the outstanding common shares of the capital stock for the second semester of 2008. In accordance with the BPI Board's resolution, the cash dividend is payable to all common shareholders of record as of March 5, 2009 and distributable/payable to the said stockholders on March 20, 2009.
	PRESS STATEMENT 2008 FINANCIAL PERFORMANCE
	2008 Operating Performance Highlights The Bank of the Philippine Islands (BPI) steered through the highly volatile global financial landscape in 2008, riding on the strength of its established prudent and far-sighted risk management practices. Operating results showed the bank’s relative competitive strength and adequate capital position. Financial Performance Results Amid signs of deepening financial strains globally, the bank delivered a P1.1 billion net income in the fourth quarter. Revenues were up by 6.5% as both net interest income and non interest income improved by 7.6% and 4.3%, respectively. The improvement in revenues were however tempered by the 13% increase in operating expenses due to the P349 million additional retirement expense following the valuation of the bank’s retirement fund. Income taxes were likewise higher following the improvement in revenues. Net income thus dropped by 26.2% from the previous quarter. For the full year, unaudited net income reached P6.4 billion, 35.8% lower than 2007 and equivalent to a return on equity of 10%. While the bank opted to reclassify a small amount of its trading book to held-to maturity securities following a change in intention, the bank did not avail of the back valuation provision of the new IAS 39 rule and hence, the bank’s third quarter financial statements were not restated. Revenues were down 8.5% while credit impairment losses increased by P679 million to P1.9 billion. Income taxes were also higher by P218 million. The lower revenues were mainly caused by the 24.1% decline in non interest income arising from two major items: a P2.8 billion decline in securities trading income as the bank executed several cut loss strategies following rising interest rates, and the P1.3 billion decrease in the contribution of the insurance companies due to non recurring investment income in 2007. Higher foreign exchange profits on the other hand partly compensated for the drop in securities trading income. Net interest income was slightly higher by 2.7%, mainly driven by a 5.3% improvement in the average asset base. Net interest margin on the other hand narrowed by 7 basis points as the bank opted to invest in safe haven foreign currency assets with relatively lower yields. Operating expenses of P18.3 billion was contained at the same level as the previous year. Savings in manpower and other operating expenses mitigated the increases in premises and technology expenses. Manpower cost ended lower than the previous year despite the additional retirement expense. Business Volume Growth BPI delivered strong business volume growth. Loans expanded by 17% to P320.2 billion despite the P6.0 billion in maturing government promissory notes. The bank exceeded its 12% growth target for the year and for the second year, recorded double digit growth rate. Growth was broad based with both corporate and retail loans contributing strongly. Corporate loans inclusive of SME loans expanded by 18.5% while consumer lending went up by 22.7%. BPI was named as the Top Commercial Bank for OFW Remittances for the third year in a row and was elevated to the BSP Hall of Fame. This outstanding performance in the remittance services was replicated in 2008 as volume picked up by another 35.4%, well ahead of the industry growth rate. Total resources reached P667.4 billion at the end of 2008, a modest 4.7% increase over 2007. Deposits likewise improved by 5.2% to P540.3 billion, but more importantly, total customer funds, together with assets held in trust (AHIT), increased by 8.9%. AHIT increased 16.3% to P292.3 billion on a strategic move to offer higher yielding trust products to price-sensitive customers. Competitive Performance Aided by the bank’s risk management policies, BPI was the only major bank with no exposure to Lehman Brothers, AIG and the subprime mortgage industry. The bank also ably managed market risks by adhering to prudential Value at Risk (VAR) limits and reduced its trading books by 21%. Net 30-day non-performing loans ratio (BSP version) improved to 2.9%, and non-performing assets dropped below 10%. In December, BPI issued P5.0 billion in 10-year subordinated debt eligible as Lower Tier 2 capital out of a BSP-approved P15.0 billion issuance. The issue was well received and fully subscribed. Yearend capital was lower at P63.9 billion, as actual dividend payments of P8.0 billion exceeded the net income for the year and on lower market valuation of securities. Overall capital adequacy ratio of 14.1% remained sufficient and well above the 10% regulatory minimum. BPI’s market capitalization stood at P125.0bn, the highest among the listed banks, notwithstanding the 24.9% drop in the stock price. The bank retained its CAMELS 4 rating in the annual BSP examination, and was assigned a National Long-term Rating of AAA(phl) rating by FitchRatings. BPI has consistently been awarded Best Bank awards by Global Finance, Asiamoney, The Asian Banker, FinanceAsia, Alpha Southeast Asia, The Banker, and The Asset. 2009 Outlook With the prevailing uncertainties, BPI looks at 2009 with caution and will continue what it started in 2008 - a return to “Back to Basics” banking. BPI President and Chief Executive Officer Aurelio R. Montinola III comments on future prospects “We are aware of the challenges posed by the highly uncertain and volatile economic environment on business conditions. But even in these trying times, we intend to do our share to keep the economy going. We are determined to keep our lending windows open and ensure that customer funds are prudently managed and safeguarded. We know that in good times, banking is about growth and earnings; however in difficult times, banking is about liquidity, solvency and trust, and these last 3 factors have all been strong attributes of BPI and in general, the Philippine banking system”
	REGULAR CASH DIVIDEND DECLARATION
	During its regular meeting held on December 17,2008, the Board of Directors of BPI declared a regular cash dividend of P0.90 per share for the second semester of the year 2008, on the total outstanding common shares of the bank. This will be payable to all common shares stockholders of record as of the 15th day from the receipt of the approval by the Bangko Sentral ng Pilipinas of the said dividends declaration and distributable on the 15th day from said record date.
	ANNUAL STOCKHOLDERS' MEETING ANNOUNCEMENT
	The Executive Committee (Excom) of BPI approved the holding of the bank's Annual Stockholders' Meeting on March 31, 2009 at 9:00 am at the Grand Ballroom, Hotel Intercontinental, Makati City. The agenda for the meeting is as follows: Calling of Meeting to Order. Certification of Notice. Determination and Declaration of Quorum. Approval of the Minutes of the Annual Meeting of the Stockholders on 03 April 2008. Reading of Annual Report and approval of the Bank's Statement of Condition as of December 31, 2008 incorporated in the Annual Report. Approval and Confirmation of all Acts during the past year of the Board of Directors, Executive Committee, and all other Board and Management Committees and Officers of BPI. Election of 15 Members of the Board of Directors. Election of External Auditors and Fixing their Remuneration. Directors' Bonus. Other Matters.- The Excom also approved that all nominations to the BPI Board of Directors together with the written acceptance of all the nominees must be received and acknowledged by bank's Office of the Corporate Secretary not later than the end of business hours of January 19, 2009. The Stock and Transfer Book of BPI will be closed 30 days before the Stockholders' meeting or starting March 01, 2009. Accordingly, only stockholders of record as of March 01, 2009 will be entitled to notice and to vote at said meeting.