WE MAKE IT 2012 INTEGRATED ANNUAL AND SUSTAINABILITY REPORT

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WE MAKE IT BPI promotes good relationships with all the communities touched by our business. We aim to contribute significantly to the enhancement of their quality of life. 78 2012 INTEGRATED ANNUAL AND SUSTAINABILITY REPORT

for communities BANK OF THE PHILIPPINE ISLANDS 79

Beyond the confines of our boardroom and corporate walls, we embark on initiatives to help improve the lives of people in the communities. We do this by embedding corporate social responsibility in our business, and also through BPI Foundation, our social development arm, as well as engaging our employees through volunteerism initiatives. As a responsible corporate citizen, we contribute to building a sustainable society in partnership with non-government organizations, government institutions, and other civic organizations on projects that promote entrepreneurship, education, and the environment. BPI Foundation s new initiatives in 2012 were the following: BPI-ISEA Capacity Building for Social Enterprises BPI Foundation continues its effort as catalyst and initiator of enterprise development by collaborating with the Institute for Social Entrepreneurship in Asia (ISEA), a learning action network of social resource institutions and social enterprises. making a In September 2012, 22 potential trainers and 11 trainees from among the managers and senior staff of social enterprises across the country took a five-day training on Social Enterprise Financial Management and Social Return on Investment (SROI) under a grant provided by BPI Foundation. Show Me, Teach Me, MSMEs We continued to expand the reach of our entrepreneurship learning program to six key areas in 2012, including Tuguegarao, San Fernando La Union, Bacolod City, Dipolog, General Santos and Zamboanga. The twoday session covered topics on Starting and Maintaining a Business, Finding the Right Market, Basic Product Costing and Pricing, and Basic Business Recording in partnership with the Philippine Trade Training Center (PTTC). The program was cited with a Special Award for Enterprise Development Category in the 2 nd MAP CSR Leadership Challenge 2011 sponsored by the Management Association of the Philippines. 80 2012 INTEGRATED ANNUAL AND SUSTAINABILITY REPORT

BPI Library BPI Foundation, in partnership with the Filipinas Heritage Library (FHL) of Ayala Foundation, Inc. and the local government unit of Infanta, Quezon, helped build a muchneeded library in Infanta, Quezon. The new facility, which houses over 500 books, a computer, and other educational materials provided by the Dona Isabel Garcia Trust Fund, aims to be the resource and information center for the communities in the area, especially the youth. BPI Museum Zamboanga To celebrate the centennial year of BPI Zamboanga branch, we opened the BPI Museum Zamboanga on August 17, 2012. This is a lifestyle museum that depicts the life and culture of Zamboangueños at the end of the Spanish colonial period and the beginning of the American period. We also unveiled the historical marker of the Barrios house where the museum is located at the second floor and was the residence of Gen. John Jacob Pershing and later on those of BPI bank managers. The first floor has been and still is BPI s main branch in Zamboanga City since 1912. By making things easier for communities, we will continue to help guarantee a secure and sustainable future for society and the next generation of Filipinos. BPI partnered with the Filipinas Heritage Library and the local government unit of Infanta, Quezon to build a library in the town that was once ravaged by a typhoon. d Php11.8M Total amount released as of end-2012 in support of the BPI Builds for Teachers, a housing program for public school teachers in Quezon City, Davao and Saranggani, done in partnership with Habitat for Humanity Philippines Amount donated to the BPI Library in Infanta, Quezon for the purchase of 500 new books and other library materials, computer unit, book racks, stands and other pre-operating expenses BANK OF THE PHILIPPINE ISLANDS 81

Entrepreneurship BPI-ISEA Capacity Building for Social Enterprises 22 potential trainers and 11 trainees from among the managers and senior staff of social enterprises across the country Php800,000 grant for a 5-day training workshop Show Me, Teach Me, MSMEs 285 entrepreneurs from all sectors including persons with disabilities, overseas Filipinos, senior citizens and the youth Partner: Philippine Trade Training Center Education BPI Library in Infanta, Quezon BPI Builds for Teachers BPI postgraduate scholarship program Youth in Infanta, Quezon Php600,000 for the purchase of 500 new books and other library materials, computer unit, book rack, stands and other preoperating expenses Partners: FHL and the local government of Infanta, Quezon Public school teachers in Quezon City, Davao and Saranggani (77 houses to date) Pledge of Php14 million (donated Php11.85 million to date) Partner: Habitat for Humanity Philippines 12 public high school teachers from Region XII Php5,000 monthly living allowance and full tuition fee per teacher Partners: Department of Education and Mindanao State University-General Santos 82 2012 INTEGRATED ANNUAL AND SUSTAINABILITY REPORT

The BPI-DOST Science Awards recognizes and provides incentives to graduating students in selected colleges/universities who excel in specialized fields of science. 1000 Teachers program 20 scholars from Philippine Normal University-Isabela, UP Diliman and Ateneo de Naga University Financial support for tuition, review classes and monthly allowance Partner: Philippine Business for Education Skills improvement and enhancement training for teachers 240 elementary teachers in English, Mathematics, Science, Social Studies and Filipino from Gumaca, Quezon; 26 Makabayan teachers of Zamboanga City; 178 Math teachers from three political districts of Davao City Partners: UP Manila s Pahinungod, Miriam College s G.U.R.O. (Growth, Upgrading and Resource Office), FHL and the UP Alumni Association of Davao College Scholarship for Dependents of BPI Employees Five scholars every school year for deserving and qualified dependents of the Bank s employees, who are going to take up science and engineering courses from accredited universities (12 scholars currently enrolled) Full tuition fee support Endowed Scholarship for OFW Dependent Dependent of an overseas Filipino who will pursue a businessrelated course under a four-year scholarship in Miriam College Scholarship Program for Educational Assistance and Development 26 economically disadvantaged honor students from Southern Luzon who wish to take up Bachelor of Science in Computer Science at DLSU s Aguinaldo Campus in Cavite BPI-DOST Science Awards Science and technology graduating students of BPI s 10 partner universities* Php90,000 in total cash prizes for the top 3 winners, on top of the Php25,000 each science awardee receives in recognition of their excellent standing in school Partner: Department of Science and Technology (DOST) * Ateneo de Manila University, UP Diliman, UP Los Baños, University of Sto. Tomas, De La Salle University, University of San Carlos, Xavier University, Ateneo de Davao University, Silliman University and St. Louis University BANK OF THE PHILIPPINE ISLANDS 83

preserving History was very much alive during BPI Zamboanga s centennial anniversary, with activities that revisited important milestones in the Bank s long and proud history in the city. In Zamboanga City, the site of its first branch in MIndanao, BPI executives, national and local officials, valued clients and other VIPs were on hand to celebrate the centennial anniversary of BPI Zamboanga-Main branch s founding in 1912. Originally owned by a wealthy Chinese trader who took on the name Francisco Barrios, its second floor later became the residence of American General John Jacob Pershing. The branch, which opened on the ground floor of the Barrios house in 1912, remains intact today and continues to serve as the main bank branch in the city. BPI has three other branches in the area. BPI President and CEO Aurelio Montinola III said the Bank has always upheld its commitment to serve as Zamboanga s foremost partner in banking. This commitment was true then as it is now. For his part, Zamboanga City Mayor Celso Lobregat noted how BPI has been there every step of the way, as the community developed from a small town of calesas and wooded houses to the bustling modern city that it is today. 84 2012 INTEGRATED ANNUAL AND SUSTAINABILITY REPORT

SPECIAL FEATURE In celebration of the 100 years of BPI in Zamboanga, the Bank opened a museum to stand as a wtiness to the richness of the culture and heritage that BPI proudly shares with the Zamboanguenos. The second floor of the building was converted into a Lifestyle museum that showcases life in Zamboanga around the time that BPI opened its doors there 100 years ago. Period furniture and vintage photographs were on display in the Museum s Grand Sala and six rooms which include the bedrooms used by Pershing and his family. Various commemorative materials on BPI history and the Zamboanga branch history are also available for viewing. The Museum truly depicts the gentility and elegance of Zamboangueno culture and society. The Barrios house, as it is called, is the last standing Spanish-era residence in Zamboanga City today. In order to preserve this structure in the heart of Zamboanga City, the National Historical Commission of the Philippines, led by its Chairperson, Dr, Maria Serena Diokno, unveiled a national historical marker at the site. This ensures the protection of the building so generations of Filipinos will have a chance to view and appreciate it. A mass was also held at the Shrine of Our Lady of the Pillar, which houses the Patroness of Zamboanga City. This was followed by a special viewing of the crown of Our Lady. This crown, made of gold and precious gems, was donated by a group of rich Zamboanguenos in the 1950s to be used in a formal crowning ceremony by the then Papal Nuncio. Safekept in the BPI bank vault, the crown had not been exhibited for display for more than 50 years. (Above) One of the large bedrooms of the house was converted into the manager s room and carefully recreated with period office furniture and equipment. (Left) Part of the original tellers counters are still intact and are on display at the ground floor of the newly-renovated more modern BPI Zamboanga - Main branch. Black and white machuca floor tiles remain faithful to the original flooring. BANK OF THE PHILIPPINE ISLANDS 85