Corrected copy

BANGKo SENrne,L

NG} PIT-IpIruag

OFFICE OF THE GOVERNOR

ctRcutAR No.8S8
Series of 2015

Subject: Amendments

to

Regulations on Dividend Declaration and

Interest Payments on Tier l Capital Instruments

"

Pursuant to Monetary Board Resolution No. 1516 dated L7

september 2015,
approving the amendments to regulations on dividend declaration,
the provisions of the
Manual of Regulations for Banks (MORB) and Manual of Regulations
for Non-Bank Financial
Institutions (MORNBFI) are hereby amended:
section 1. The following sections/subsections of the MoRB are hereby
amended as
follows:
"Sec. X136 Dividends. The following rules.and regulations
shall govern the
declaration of dividends on shares of stock, regardless of feature,
as well as interest
payments on unsecured subordinated debt which meet
the qualification
requirements of Additional Tier 1 or Hybrid Tier 1 capital
as defined under existing
risk-based capital adequacy framework.

"Pursuant to section 57 of R.A. No. 87gI, no bank

shall declare dividends
greater than its accumulated net profits then on
hand, deducting therefrom its losses
and bad debts. Neither shall the bank declare dividends if,
at the time of declaration,
it has not complied with the provisions of Subsec. XI36.2."

"5 x136.1 Definitions. For purposes of this Section, the following definitions

shall apply:

"xxx"

"s x136.2 Requirements on the declaration of dividends. At the time of

declaration, banks shall have complied with the followin!:
"a. clearing account with the Bangko sentral is not overdrawn;

"b. Liquidity floor requirement for government funds;

"c' Minimum capitalization requirement and risk-based capitat ratios

as
provided under applicable and existing capital adequacy
framework;
"d. Capital conservation buffer requirement as defined
in Appendix 63b, part
lll, for universal and commercial banks (u/KBs) and their subsidiary

banks and quasi-

banks (Qes1;

A. Mabini 5t., Malate 1004 Manira, philippines

r {632} 708-7701 . www.bsp.gov.ph

o [email protected]

"e. Higher loss absorbency requirement, phased-in starting 1 January 2017

with full implementation by 1 January zOLg, in accordance with Domestic
Systemically lmportant Banks (DSlBs) Framework as provided under Circular No.
856 dated 29 October 2OL4, for U/KBs and their subsidiary banks and eBs that are
identified as DSIBs; and

'f.

Has not committed any unsafe or unsound banking practice as defined

under existing regulations and/or major acts or omissionsl as may be determined.by
the Bangko Sentral to be ground for suspension of'dividend distribution, unless this
has been addressed by the bank as confirmed by the Monetary Board or the Deputy
Governor, SES, as may be applicable, upon recommendation of the appropriate
department of SES.
"Banks shall ensure compliance with the minimum capital requirements and
risk-based capital ratios even after the dividend distribution."

"9 3136.2 Limitotions/Amount avoilable lor dividends declared by rurol

banks and cooperotive bonks. The following rules shall also govern the declaration of
dividends by RBs and Coop Banks.

"a. Reserve for retirement of government preferred stock. In addition to the

requirements prescribed in Subsec. XL36.2, an RB/Coop Bank may declare cash
dividends only if the amount of its reserve for retirement of government preferred
stock is at least equal to the amount which should have been accumulated had the
bank transferred annually to the reserve account from its undivided profits an
amount equal to at least an average of one-tenth (1/10) of the total amount of
preferred stock; and
"b. Applicability of other laws, rules and regulotions for Coop Banks. Coop
Banks shall, likewise, comply with the provisions governing the distribution of net
surpfus as provided under Article 86 of R.A. No. 9520, the Coop Bank's By-Laws as
well as other laws, rules and regulations.
"c. Dividends on government shores for RBs

"(Ll Held prior to 09 June 1992. Whenever dividends of not less than fourteen
percent (L4o/ol are declared on common stock, government preferred stock shall be
entitled to a cash dividend not to exceed two percent (2o/ol of total outstanding
preferred stock. Should the dividends declared on common stock be less than
fourteen percent (L4o/ol, the dividend on preferred stock shall be proportionately
reduced.

Major acts or omissions is defined as bank's individual failure to comply with the requirements of banking
laws, rules and regulations as well as Monetary Board directives having material impact on bank's capital,
solvency, liquidity or profitability, and/or those violations classified as major offenses under the Report of
Examination, except those classified under unsafe or unsound banking practice.

Page 2 of 9

"(2) Held on or after 09 June 1992. shares held by the LBp, DBp, or by any
government-owned or-controlled bank or Fl shalt share in dividend
distributions
from the date of issuance in the amount of four percent (4%l onthe first and
second
years six percent (60/o) on the third and fourth years; eight percent (g%)
on the fifth
and sixth years; ten percent (10%) on the seventh and eighth y".rr; and
twelve
percent (L2o/ol on the ninth to the fifteenth years, which shall be
cumulative:
Provided, That the RB and the government-owned or controlled
bank are not
precluded from entering into an agreement providing for rates
of dividends other than
those prescribed by law.
"(3) Held on or after 13 September 2013. Shares held by the LBp, DBp,
or.by
any government-owned or-controlled bank or Fl shall share in dividend
distributions
from the date of issuance in an amount based on the lending benchmark
approved by
the Bangko Sentral plus the prevailing non-prime spread of the government Fl:
Provided, That the RB and the government-owned or -controlled
bank are not
precluded from entering into an agreement providing for rates
of dividends other than
those prescribed by law.',
"SX136.3 Net amount availoble for dividends. The net amount available
for
dividends shall be the amount of unrestricted or free retained earnings
and
undivided profits reported in the Financial Reporting package (FRp)
as of the
calendar/fiscal year-end immediately preceding the date of dividend
declaration.

"The derivation of the amount of dividends from the unrestrictedfree

retained earnings shall be based on a sound accounting system
and loss provisioning
processes under existing regulations which takes into
account relevant capital
adjustments including losses, bad debts and unearned profits or income.2 ,.

'S X136.4 Reporting and verificotion. Declaration of dividends shall be

reported by the bank concerned to the appropriate'department of
the sES within ten
(10) banking days after date of declaration in the following
manner:
"a. submission of a dury notarized certification (Annex A) signed by
the

President, or an officer of equivalent rank, and the Chief Compliance

officer stating
that the bank has complied with the requirements on the declaration
of dividends
provided under Subsec. xLg6.2, and, in the case of rural
banks and cooperative
banks, subsec. 3L36.2, as well as other existing applicable laws;
and

"b. Submission

of the Report on Dividends Declared (Annex B), which shall

be considered a Category A-1 report.

Unearned profits or income refers to unrealized items which

are considered not available for dividend
declaration such as accumulated share/equity in net income of its
subsidiaries, associates or joint venture
accounted for under the equity method, recognized deferred tax
asset, foreign exchange profit arising from
revaluation of foreign exchange denominated accounts and others.

Page 3 of 9

"However, banks with major supervisory concerns such as those initiated

under prompt corrective action (PCA) or with specific MB directive to
suspend/refrain/restrict dividend declaration, shall be subject to prior Bangko
Sentral verification by the appropriate department of the SES. Pending verification of
abovementioned reports, no announcement or communication on the declaration
of dividends nor shall any payment be made thereon until receipt of Bangko Sentral
advice thereof."
"S X136.5 Recording ol dividends. The liability for dividends declared shall
be taken up in the bank's books upon its declaration.
"However, for dividend declarations that are subject to prior Bangko Sentral
verification, the liability for dividends declared shall be taken up in the bank's books
upon receipt of Bangko Sentral advice thereof. A memorandum entry may be made
to record the dividend declaration on the date of approval by the board of directors.
"For full disclosure purposes, the dividends declared shall be disclosed in the
financial statements either as a footnote in the statement of changes in equity or in
the notes to the financial statements. For dividends declared that is still subject to
prior Bangko Sentral verification, disclosure by means of a footnote should include a
statement to the effect that the dividend declaration is subject to review by the
Bangko Sentral ."

'9 X136.6 lssuance of fractional shares. Whenever the declaration of stock

dividend results in the issuance of fractional shares, banks may observe the following
guidelines:
t'xxxtt
"9 X136.7 - X136.9 (Reserued)"

"5 X135.10 Superuisory Enforcement Actions. Consistent with Circular No.

875 dated 15 April 2OL5, the Bangko Sentral may deploy enforcement actions to
promote adherence with the rules and regulations governing dividend declaration
and bring about timely corrective actions. The Bangko Sentral may issue directives to
supend/refrain/restrict from performing a particular activity, or impose sanctions to
limit the level of or suspend any business activity that has adverse effects on the
safety or soundness of the bank, among others. Sanctions may likewise be imposed
on a bank and/or its directors, officers and/or employees.

"The imposition of sanctions shall be without prejudice to the imposition of

administrative sanctions under Section 37 of R.A. No. 7553 including declaring as
unsafe or unsound (as defined under Section 56 of R.A. No. 8791) the inappropriate
dividend declarations, and/or to the filing of appropriate criminal charges against
culpable persons as provided under Section 35 of R.A. No. 7653 for the willful making
of a false/misleading statement.

Page 4

of 9

"Further, banks subsequently found to have violated the provisions on

dividend declaration or have falsely certified/submitted misleading statements
shall
be reverted to the prior Bangko Sentral verification wherein the bank can
only make
an announcement or communication on the declaration of dividends or payment
of
dividends thereon3 upon receipt of Bangko sentral advice thereof.,,
"Sec. X137 (Reserved|,,

"Sec. 1137 (Reserved),,

" Sec.

2l3l ( Reserved ),,

"Sec. 3137 timitations/Amount Available on Dividends Declared by Rural

Banks and cooperative Banks. (Deteted by circular No. g8g
dated g october 2075)
5 3137.1 Dividends on government shares (Deteted by Circular No. ggg
dated
9 October 2015)
"Secs. X138 - X140 (Reserved)

"g x126.5 lssuance of redeemoble

report; sonctions

"a.
conditions:

shares: conditions; certificqtion and

Conditions. Banks may issue redeemable shares subject to

the following

(1)
(21
(3)
(a)
(b)
(c)
(d)

xxx
xxx

The applicant bank after xxx:

xxx
xxx
xxx

No dividend shall be declared or paid on redeemable shares

in the
absence of sufficient undivided profits, free surplus.,,
"xxx."

section 2. The following sections/subsections of the M9RNBFI

are hereby
amended as follows:

"sec' 4136Q Poo84126Q) Dlvidends. The following rules and regulations

shall
govern the declaration of dividends on shares
of stock, regardless of feature, as well
g

'

subject banks whose shares are listed with any domestic

stock exchange may declare dividends and give
immediate notice of such declaration to the sEC and
the stock exchanges, in compliance with pertinent rules
of the sEC: Provided, That, no record date is fixed for such
dividend pending verification of the report on
such declaration by the appropriate department of the
SES.

Page 5 of 9

as interest payments on unsecured subordinated debt which meet the qualification

requirements of Additional Tier 1 as defined under existing risk-based capital
adequacy framework.

"Pt)rsuant to Section 57 of R.A. No. 87gL, no QB shall declare dividends

greater than its accumulated net profits then on hand, deducting therefrom its
losses and bad debts. Neither shall the QB declare dividends if, at the time of
decf aration, it has not complied with the provisions of Subsec. 4L36e.2."

"g 4136q.1 PW8

- 4126Q.1) Delinitions of terms. For purposes of this

Section, the following definitions shall apply:

"xxx"

'9 4136q.2 e@8 - 4126Q.2) Require'ments

dividends/net amount available for dividends.

on the declarotion of

"a. Requirements on the declarotion of dividends. At the time of declaration,

QBs shall have complied with the following:
"(1) Clearing account with the BSP is not overdrawn;

"(2) Minimum capitalization requirement and risk-based capital ratios

as

provided under applicable and existing capital adequacy framework;

"(3) Capital conservation buffer requirement as defined in Appendix Q-45,

Part lll, for QBs that are subsidiaries of universal and commercial banks (U/KBs);
"(4) Higher loss absorbency requirement, phased-in starting 1 January 2017
with full implementation by 1 January 2OL9, in accordance with Domestic
Systemically lmportant Banks (DSlBs) Framework as provided under Circular No.
856 dated 29 October 20L4, for QBs that are subsidiaries of U/KBs identified as
DSIBs; and

"(5) Has not committed any unsafe or unsound practice as defined under
existing regulations and/or major acts or omissionsa as may be determined by the
Bangko Sentral to be ground for suspension of dividend distribution, unless this has
been addressed by the QB as confirmed by the Monetary Board or the Deputy
Governor, SES, as may be applicable, upon recommendation of the appropriate
department of

SES.

"QBs shall ensure compliance with the minimum capital requirement and
risk-based capital ratio even afterthe dividend distribution.

Malor acts or omissions is defined as QB's individual failure to comply with the requirements of banking
laws, rules and regulations as well as Monetary Board directives having material impact on QB's capital,
solvenry, liquidity or profitability, and/or those violations classified as major offenses under the Report of
Examination, except those classified under unsafe or unsound practice.

Page 5 of 9

"b. Amount available. The net amount available for dividends shail be the
amount of unrestricted or free retained earnings and undivided profits reported
in the
Bangko Sentral prudential reports as of the calend ar/fiscal year-end immediately
preceding the date of dividend declaration.

"The derivation of the amount of dividends from the unrestrictedfree

retained earnings shall be based on a sound accounting system and loss provisionlng
processes under existing regulations which takes into account
retevant capital
adjustments including losses, bad debts and unearn'ed profits or income.S.,,
"9 4136Q.3 (Reserued)"

"5 4136Q'4 PN8 - 4126Q.9) Reporting ond verification. Declaration of

cash dividends shall be reported by the eB concerned to the appropriate

department of the
following manner:

sES

within ten (10) business days after date of declaration in the

"a' Submission of a duly notarized certification (Annex A) by the president,

or
an officer of equivalent rank, and the Chief Compliance officer
stating that the eB
has complied with the requirements on the declaration
of dividends provided under
subsec. 4L36Q.2, as weil as other existing appricabre raws; and

'b' Submission of the Report on Dividends Declared (Annex B), which shall
be considered a Category A-1 report.
"However, QBs with major supervisory concerns such as

initiated under
prompt corrective action (pcA) or with specific those
MB directive to
suspend/refrain/restrict dividend declaration, shall be subject
to prior Bangko

sentral verification by the appropriate department of the sES. pending

verification
of abovementioned reports, no announcement or communication
on the declaration
of cash dividends nor shall any payment be made thereon until receipt
of Bangko
Sentral advice thereof.,,

"9 4136Q.5 l2Mg 4726Q.41 Recording of dividends. The liability

for cash
dividends declared shall be taken up in the eg,s boots upon
its declaration.
"However, for dividend declarations that are subject
to prior Bangko Sentral
verification, the liability for cash dividends declareo strail
be taken up ii th. eB,,
books upon receipt of Bangko sentral advice thereof. A
memorandum entry may be
to record the dividend declaration on the date of approval by the board
T"d:
of

orrectors.

unearned profits or income refers to unrealized items

which are considered not available for dividend
declaration such as accumulated share/equity in net income
of its subsidiaries, associates or joint venture
accounted for under the equity method, recognized deferred
tax asset, foreign exchange profit arising from
revaluation of foreign exchange denominated accounts
and others.

Page 7 of 9

"For full disclosure purposes, the cash dividends shall be disclosed in the
financial statements as a footnote in the statement of changes in equity or in the
notes to the financial statements. For dividends declared that is still subject to prior
Bangko Sentral verification, disclosure by means of a footnote should include a
statement to the effect that the dividend declaration is subject to review by the
Bangko Sentral."

"g 4136Q.6 (Reserued)"

"9 4135q.7 l200g - 4726Q.5) Rules on declaration of stock dividends. The

declaration of stock dividends shall be subject to the preceding regulations on
declaration of cash dividends. "
'S 4136Q.8 - 4136Q.9 (Reserued)"
"9 4136Q.1O Superuisory Enforcement Actions. Consistent with Circular No.
875 dated 15 April 2OL5, the Bangko Sentral may deploy enforcement actions to
promote adherence with the rules and regulations governing dividend declaration
and bring about timely corrective actions. The Bangko Sentral may issue directives to
suspend/refrain/restrict from performing a particular activity, or impose sanctions to
limit the level of or suspend any business activity that has adverse effects on the
safety or soundness of the QB, among others. Sanctions may likewise be imposed on
a QB and/or its directors, officers and/or employees.
"The imposition of sanctions shall be without prejudice to the imposition of
administrative sanctions under Section 37 of R.A. No. 7553 including declaring as
unsafe or unsound (as defined under Section 56 of R.A. No. 8791) the inappropriate
dividend declarations, and/or to the filing of appropriate criminal charges against
culpable persons as provided under Section 35 of R.A. No. 7653 for the willful making
of a false/misleading statement.
"Further, QBs subsequently found to have violated the provisions on dividend
declaration or have falsely certified/submitted misleading statements shall be
reverted to the prior Bangko Sentral verification wherein the QB can only make an
announcement or communication on the declaration of dividends or payment of
dividends thereon6 upon receipt of Bangko Sentral advice thereof."

Section 3. The Financial Reporting Package, prescribed under Subsection

XL9t.2 of the MORB is further amended to revise the Manual of Accounts (MOA) to
amend the definition of Dividends Payable as follows:

(a)

Manualof Accounts
"xxx

6 Subject QBs whose shares are listed with any domestic stock exchange may declare dividends and give
immediate notice of such declaration to the SEC and the stock exchanges, in compliance with pertinent rules
of the SEC: Provided, That, no record date is fixed for such dividend pending verification of the report on
such declaration by the appropriate department of the SES.

Page 8 of 9

"30. Other Liabilities

"(al

Servicing Liabitities _ xxx

"xxx

(e)

Dividends payable - This refers to the amount of

unpaid
cash dividends decrared by the Board of Directors
to
stockholders of record.

"xxx

Section 4. Appendix 6 of the MORB and Appendix

e-3 of the MORNBFT are
hereby amended to include the Report on Dividends
Declared (for bank and eBs) as
a category A-1 report which shall be submitted within
10 banking/business days
after date of dividend decraration to the appropriate
department of the sEs.
This circular shall take effect fifteen (15)
days after its publication either in
the official Gazette or in a newspaper of general circulation.

FOR THE MONETARY BOARD:

C. GUINIGUNDO

October 2015

Page 9 of 9

Annex A
FORMAT CERTIFICATION ON COMPTIANCE WITH
REQUIREMENTS ON DIVIDEND DECTARATION
(Appendix to Subsec. XL36.4l 486q.4l

(Name of Bank/QB)
CERTIFICATION

We, Name of Officer), President br Officer of Equivalent RanH and (Nome of

Officerl. Chief Compfiance Officer, in behalf of (Name of Bank/Qil, with office address at
Heod/Principal Officet. after having been duly sworn to in accordance with law, hereby
certify that the bank's/QB's dividend declaration as of (date of dividend decloration), as
approved by the board of directors (state resolution number and dotd, to the bank's/QB's
stockholders of record as of (record dote) amounting to.{amount of cash/stock/propertv
dividend decloration) complies with the provisions of Section X135 of the Manual of
Regulation for Banks (MORB), in the case of banks, or Section 4136Q of the Manual of
Regulations for Non-Bank Financial lnstitutions, in the case of QBs.

We further certify that at the time of dividend declaration, the bank/QB

has

complied with the following:

a.

Clearing account with the Bangko Sentral is not overdrawn;

b.

Liquidity floor requirement for government funds; (for bonks)

c.

Minimum capitalization requirement and risk-based capital ratios as provided

under applicable and existing capital adequacy framework;1

d. Capital conservation buffer requirement as defined in Appendix 63b/Q-46, Part

llf of the MORBIMORNBFI; (for U/KBs and their subsidiary bonks and QBs)
e.

Higher loss absorbency requirement as provided under Circular No. 856 dated
29 October 2Ot4; (for identified Domestic Systemicolly lmportant Bonks and their
subsidiory bonks and QBs)

f.

Has not committed any unsafe or unsound banking practice and/or major acts or
omissions as as may be determined by the Bangko Sentral;

g.

for the retirement of the

Has accumulated reserves of P
government preferred stock which is at least equal to the amount prescribed in
Subsection 3136.2 of the MORB (for rurol ond cooperative bonks);

h.

with the provisions of Article 86 of R.A. No. 9520, its By-Laws and
other applicable laws, rules and regulations on the allocation and distribution of
Has complied

net surplus (for cooperotive bonks);

We also certify that the bank/quasi-bank also comply with this requirement even after dividend distribution.
Page 1 of 2

i.
j'

Has complied

with the provisions of Section 43 (Power to declare dividends) of

The corporation code of the philippines (Batas pambansa Blg. 6g), as may
be
applicable; and
Has complied

with the provisions of revised implementing rules and regulations

Government-Owned and/or Controlled
Corporations to Declare Dividends Under Certain Conditions to the
National
Government, and for other purposes" (for Government-owned banks/eBs)

to R'A. No. 7556, "An Act Requiring

To the best of our knowledge, the foregoing statements are

true and correct.

president

Chief Compliance Officer

TIN:

TIN:

Com. Tax Cert. No.:

Com. Tax Cert. No.:

lssued on:

lssued on:
lssued at:

lssued at:

Subscribed and sworn to before me, this

exhibiting his/her respective Community Tax Certificate
aiindicated above.
Doc. No.
Page No.

NOTARY PUBLIC

Book No.
Series of :

Page 2 of 2

ANNEX B

Category:
Deadline:
Submission:

CategoryA-1
10 banking/business days after date
of dividend declaration

Hard copy to the appropriate

supervising department of the

FOR ALL 8ANKS/QBs

Name of

Bank/QB

Code

Address

REPORT ON DIVIDENDS DECIARED

As

of
( Date of Dividend Declaration)

REPUBLIC OF THE PHILIPPINES)

) s.s.

We solemnly swear that all matters set forth in this report including its supporting schedule are
true and correct, to the best of our knowledge and belief.

(Signature of Chief Compliance

Officer)

(Signature of Chief Finance Officer/

Comptroller/Chief Accountant)

(Signatu re of President/Senior/

Executive Vice President)

SUBSCRIBED AND SWORN TO BEFORE ME

this

day

20-

of

affiants exhibiting to me their

Valid lD No., to wit:

Name

Valid lD No.

Date/Place lssued

Notary Public
Until
PTR No.

Place

Doc. No.
Page No.

Book No,
Series

of

SES

&t.dulc
REFONT

Oil DIVIDENDS

IIAME

Of UB/X8/TB/RB/QB

(DoE ol dividend

1.

DECI.ARED

deldfttion)

DcdanffmbrythaSorrdofDtrcctoE
Minutes No:

Roslution No:

M.ting:

Dat of M.etin3:
(spelol or regular)

srrmm.ry:

..
b.
c.
d.
3.

Date of Doclantion ofDtuidands:

Reord D.te:
Divid.nd Paymcnt Dat
Form

of Divad.nds (Cosh. Stock, etc.):

DlstdbudonotDtvtd.nds:
SluEs Entid.d to Dlvldcnd3

Dlvld.ndr
C.sh

O.s/

No.

Deslptlon

slrarcs

of

Amunt u

OtrcrPrcpcfi

Sharc
Rate pca

Sh.rc

Tobl
Anount

Rrte pa?

lse

Sh!rc

Prle

Total
Ameunt

,clerred

v lhis

H.rcd

Stodt

includos inteEst pald for unecur.d subordin.t.d dabt that qu.lity .s Addlilonal Ti.. 1 o. Hyb.id Ttlr 1 Gpital
U Numbcr of shares
of subsribed @ptt.tstak as ot Ecord d.tc
{ Grrying amount ofsubscribed c.plt.l st6k a5 of r.cord datc
'/ lsue prle ofstock dtvtdend (per sharc)
5/
Falr value of property (per unit)

Rate par

ShaG

Preparty

valc

Totd
Amou.rt

Schedule 2

REPORT ON DIVIDENDS DECTARED

NAME OF UB/KB/TB/RB/QB

Computation of Net Amount Available for Dividends

As

of
(Date of dividend declaration)

fffmf1fi$ridfJ;i'fll"1.,'$r,,

A.

,r:lird$

4'

::S i;l:ii,:,til

,ri l"i'it,+:,;,r:'l'

,'jf*l"i

,firirlif*l

for Computation of Dividends

(As of calendar/Iiscol yeor-end immediately preceding the date of
decloration)
Basis

Retained Earnings Free

Undivided Profits
B.

l':::i

xxx

xxx

Less: Ca pital Adjustments:

(pleose spectfy)

C.

Net amount available for dividends*

xxx

D.

Amount of Dividends Declared

xxx

E.

Excess/{oeficiency) in Net Amount Available for Dividend Declaration

xxx

*The net amount avoiloble for dividend declaration sholl be bosed on the unrestricted retoined
eornings ond undivided profits which shall be bosed on a sound accounting system ond loss
provisioning processes that considers relevont adjustments to capital including /osses, bad debts
and uneorned profits or income.

l,

NEFORT ON DIVIOENDS DECI.ARED

NAME OF COOP EANK

(Dote

Dcdar.tbn by th.

frd

Resolution No:

Meeting:

Date of Meetingr

(spaiol or rcEulor,

Sunnary:
Date ofDecla6tion of Dividends:
[email protected] D.te:

Dividend Payfrcnt D.te

Form ofDlvidends fcash, St@k, etc.):

3.

dlvldend declomtion)

ot Dlr.ctoE

Mlnutes No:

2.

DhtrlbutlonofDivtdands:

', Number of shares of subscrlbed capital stock as of rccord date

- Carryln8 amount of $b$ribed capital stal as of r6ord
date
v lsse pri@ ofstock dtvidend (pr
share)
v Fairwlue of property (per unit)

Schedule 2

REPORT

ON DIVIDEf{DS DECI.ARED

NAME OF COOP BANK

Computataon of Net Surplus Avallable for DiVidends

As

of-

(Dote oI dividend declorotion)

Basis

for Computation of Divldends

(As ol colendor/fiscal yeor-end immedlately precedlng the dote

of decloration)

Net Surplus

(1) Retained Earnings

[ess: Requlred Rese]ves

(1) Requlred Reserues under Artlcle 85 of R.A. No. 9520

(al Reserve Fund
(b) Education and Training Fund
(c) Community Development Fund
(d) Optional Fund
(2)

Other Requlred Reserves

(a) Trust Business

(b) Self Insurance
(c) Contingencies
(d) Redemption of Preferred Shares ofStock

Net Surplus Avallable

for Dividend Declaration*

Amount of Dividends Declared

(1)

Interest on Share Capital

(21

Patronage Refund

Excess/(Deficiency) in Net Surplus Avallable for Dividend Declaration

*The net omount availoble
for dividend declorotion sholl be bosed on the unrestricted retoined earnings and undivided proftts which sholl be
bosed on o sound accounting system ond loss provisioning processes thot considers relevant adiustments to copitol ncluding losses, bod debts
and uneorned profits or income.