Cash

Philippine National Bank and Subsidiaries Statement of Cash Flows 2004 CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments for : Provision for impairment losses Depreciation and amortization Gain on sale of Investment Property Gain on Foreclosure Equity in net earnings of investees Dividends Received Changes in Operationg Resources and Liabilities: Decrease(increase) in amount of: Financial assets at fair value through Profit or loss /Trading account securities Loans and Recievables Othr Resources Increase (decrease) in amounts of Deposit Liabilities Due to Banko Sentral ng Pilipinas Margin Deposits and Cash Letters of credit Manager's Checks and demand drafts outstanding Accrued taxes, interest and other expenses Other Liabilities Net Cash Generated from operations Income taxes paid Net Cash Provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Decrease (increase in the amounts of: Interbank loans recievables Available- for- sale Investments Held-to-Maturity Investments Investments in Subsidiaries and an associate Proceeds from sale of investment property Net Acquisition of bank premises, furniture, fixtures, equipment and leasehold improvements Net cash provided by(used by) financing activities CASH FLOW FROM FINANCING ACTIVITIES Proceeds from settlement of bills and acceptances payable Proceeds from subordinated debt Net cash provided by (used in) financing activities NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR Cash and other cash items Due from Banko Sentral ng Pilipinas Due from other banks

517,542 932,395 722,787 (249,551) (385,578) 7,210

253,670 (826,079) 2,466,411

14,688,745 (74,738) (64,198) (154,698) (2,449,613) 2,522,176 17,906,481 (342,010) 17,564,471

(2,346,334) 851,022 (16,830,998) 111,499 2,136,251 (320,003) (16,398,563.00) 965,359 3,000,000 3,965,359 5,131,267 3,205,026 1,115,502 5,142,524

Interbank loans recievables Securities held under agreements to resell

13,742,241 5,400,000 28,605,293

Philippine National Bank and Subsidiaries Statement of Cash Flows 2004 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR Cash and other cash items Due from Banko Sentral ng Pilipinas Due from other banks Interbank loans recievables Securities held under agreements to resell

3,342,466 3,765,737 6,092,449 16,535,908 4,000,000 33,736,560

diaries

2005 1,982,756 502,855 769,078 (483,469) (102,238) 9,212

200,138 (5,429,572) 4,274,137

7,116,037 12,378 (68,464) (5,088) (1,285,988) 679,791 8,171,563 (522,063) 7,649,500

2,346,334 (9,033,469) 6,697,986 3,096,748 (276,376.00) 2,831,223.00 (452,190) (452,190) 10,028,533 3,342,466 3,765,737 6,092,449

16,535,908 4,000,000 33,736,560

diaries 2005 5,765,899 3,719,362 5,098,750 16,881,081 12,300,000 43,765,092