Collection of the Annual Supervision Fees for the Year 2024

Classification: GENERAL Page

OFFICE OF THE DEPUTY GOVERNOR I FINANCIAL SUPERVISION SECTOR MEMORANDUM NO. M-2024-__ To : All Banks and Non-Banks with Quasi-Banking Functions (NBQBs) Subject : Collection of the Annual Supervision Fees (ASF) for the Year 2024 Pursuant to Section 28 of the Republic Act (R.A.) No. 7653, “The New Central Bank Act”, as amended by R.A. No. 11211, the following guidelines shall govern the computation and collection by the Bangko Sentral ng Pilipinas (BSP) and the payment of the 2024 ASF by no later than May 31 of each year.

1. Computation of ASF for 20241
   The ASF is based on the Average Assessable Assets (AAA) of the preceding year multiplied by the applicable assessment rates approved by the Monetary Board as follows:
   Type of Financial Institution Applicable Rate
   Universal/ Commercial Banks 1/28 of 1%
   Digital Banks 1/28 of 1%
   Thrift Banks 1/28 of 1%
   Rural/ Cooperative Banks 1/40 of 1%
   NBQBs 1/28 of 1%
   The AAA of the preceding year is derived from the reports2

submitted by the Bank/NBQB to the BSP in compliance with the standards and requirements prescribed under existing regulations. For this purpose, the ASF shall be computed based on the bank’s “Total Assessable Assets”, which shall refer to total assets (end- of-month total assets per balance sheet, after deducting cash on hand, amounts due from banks, including the BSP and banks abroad3 , and investment in national government (NG) securities (Annex A)), plus assets under management of the Trust Department of a bank. Further, the ASF of NBQBs shall be computed based on the NBQB’s “Total Assessable Assets”, which shall refer to total assets (end-of-quarter total assets per balance sheet, after deducting cash on hand, amounts due from banks, including the BSP and banks abroad, and investment in NG securities (Annex A)), plus assets under management of the Trust Department of a non-bank with quasi-banking license. 1 Per BSP Circular No. 1190 dated 12 March 2024 on the Revised Guidelines in the Computation of Annual Supervision Fee 2 Financial Reporting Package (FRP) for banks, Consolidated Statement of Condition (CSOC) for NBQBs, and FRP for Trust Institution (FRPTI) of banks and NBQBs with trust functions 3 Including Central banks and monetary authorities of other jurisdictions

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The regulatory incentive for early adoption of the Standard Business Loan Application Form by covered entities under Circular No. 1156 dated 30 September 2022 shall be in the form of a reduction in the ASF for each of the years 2O24 and 2O25. The reduction shall be equivalent to twenty percent of the assessed ASF or Php 2.0 million, whichever is lower. In case of a merger or consolidation, the assets of the covered institutions prior to the merger or consolidation as well as the assets of the newly formed institution shall be considered in determining the AAA. In case of upgrading or downgrading, the assets from one bank category to another shall likewise be considered in determining the AAA. The collection of the 2024 ASF also takes into consideration events subsequent to the collection of the 2023 ASF that would warrant a recomputation. In such cases, the resulting over or under-payment of last year ASF shall be deducted/added to this year’s ASF. Sample computations to illustrate potential scenarios are provided in Annex B.
2. Notification of Amount Due for 2024 and Mode of Payments
The BSP Department of Supervisory Analytics (DSA) shall send a billing notice in April 2024 to the Bank/NBQB for its ASF payment indicating, among others, the computation of the ASF due, the period covered by the ASF and the specific date when the ASF will be debited from the Bank’s/NBQB’s Demand Deposit Account (DDA) with the BSP. Banks/NBQBs, upon receipt of the ASF billing notice from the BSP, should maintain adequate balance in their DDA to cover the ASF and other daily obligations and, when necessary, make corresponding deposits to fully cover said obligations. In case of deficiency, the provisions on DDA deficiency in Section 1101 and Section 1101-Q of the Manual of Regulations for Banks (MORB) and Manual of Regulations for Non-Bank Financial Institutions (MORNBFI), respectively, as amended, shall apply.
3. Exceptions Noted on Billing Notice of 2024 ASF
Upon receipt of the BSP Notice of ASF billing, a Bank/NBQB is encouraged to check the accuracy of the billing and to submit any of the noted exceptions therein not later than ten (10) working days before the specified date of collection/debit to DDA as indicated in the billing notice. The said exceptions, together with supporting documents, shall be e-mailed to dsa-srog@bsp.gov.ph using the following prescribed subject format – ASF 2024 -Noted Exceptions<space><BSFI Name>

Classification: GENERAL Page 3 of 3
For Example,
To : dsa-srog@bsp.gov.ph
Subject : ASF 2024-Noted Exceptions ABC Bank
Any exceptions received after the cut-off date or any exceptions not duly substantiated with documents before the cut-off date will be evaluated and considered in the computation of the ASF for the immediately succeeding year. For guidance. CHUCHI G. FONACIER Deputy Governor 26 March 2024 Digitally signed by Chuchi G. Fonacier Date: 2024.03.26 22:32:29 +08'00'

Annex A
No. Account Description Account No.
1 Financial Assets Held for Trading (Sched 3, Fair Value) 110051000000111000 2 Debt Securities Designated at Fair Value Through Profit or Loss (Sched 5, Fair Value) 115001000000111000 3 Available for Sale (AFS) Financial Assets (Sched 6, Net Carrying Amount) 120001000000111000 4 Held to Maturity (HTM) Financial Assets (Sched 7, Net Carrying Amount) 125001000000111000 5 Unquoted Debt Securities Classified as Loans (Sched 8, Net Carrying Amount) 130001000000111000 No. Account Description Account No. 1 Financial Assets Held for Trading (Sched 3, Fair Value) 110051000000111000 2 Debt Securities Designated at Fair Value Through Profit or Loss (Sched 5, Fair Value) 118001000000111000 3 Other Financial Assets Mandatorily Measured at Fair Value Through Profit or Loss (Sched 6, Fair Value) 119001000000111000 4 Financial Assets at Fair Value Through Other Comprehensive Income (Sched 7, Fair Value) 121001000000111000 5 Debt Securities at Amortized Cost (Sched 8, Net Carrying Amount) 124001000000111000 No. Account Description Record No. 1 Trading Account Securities – Investment Government Record No. 80 2 Available for Sale Securities - Government Record No. 91 3 Investment in Bonds & Other Debt Instruments - Government Record No. 101 Composition of Investment in National Government (NG) Securities as exclusions in the Total Assessable Assets in the computation of the Annual Supervisory Fees (ASF) for 2024 of Banks and Non-Banks with Quasi-Banking Functions (NBFIs) Debt Securities, Resident – National Government (Total Amount) Consolidated Statement Condition/Income and Expenses FRP v14.5 FRP v15
Table 1: Investment in NG securities for Banks
Table 2: Investment in NG securities for NBQBs

RB rate.
2023 Net Assessable Assets 2023 Net Assessable Assets Jan Jan 242,849,367.14 Feb Feb 242,337,276.23 Mar 241,288,139.49 Mar 241,288,139.49 Apr Apr 240,666,674.79 May May 241,300,200.39 Jun 240,813,284.40 Jun 240,813,284.40 Jul Jul 238,639,584.15 Aug Aug 236,534,588.97 Sep 236,631,077.94 Sep 236,631,077.94 Oct Oct 232,860,322.55 Nov Nov 229,900,793.89 Dec 229,155,336.56 Dec 229,155,336.56 Sum of Net Assessable Assets 947,887,838.39 Sum of Net Assessable Assets 2,852,976,646.50 No. of reporting periods 4 No. of reporting periods 12 Average Assessable Assets 236,971,959.60 Average Assessable Assets 237,748,053.88 ASF rate for TB (1/28 of 1%) 0.000357142857143 ASF rate for RB (1/40 of 1%) 0.00025 ASF for 2024 for TB A 84,632.84 ASF for 2024 for RB B 59,437.01
Annex B
Scenarios for computation of 2024 Annual Supervisory Fee (ASF) will be multiplied by the TB rate. The 2023 Average Assessable Assets (AAA) of RB A The 2023 AAA of TB B will be multiplied by the Scenario B: TB B downgraded to RB B in January 2024 Upgrade/Downgrade from one bank category to another Scenario A: RB A upgraded to TB A in January 2024

Scenario C: RB A upgraded to TB A in November 2023 ASF actual collection for 2023 2023 Net Assessable Assets As RB A As RB A As TB A Total Jan Feb Jan Mar 241,288,139.49 Feb Apr Mar 232,860,323 May Apr Jun 240,813,284.40 May Jul Jun 238,639,584 Aug Jul Sep 236,631,077.94 Aug Oct Sep 242,337,276 Nov Oct Dec 229,155,336.56 Nov 254,991,835 Sum of Net Assessable Assets 947,887,838.39 Dec 267,741,427 No.of reporting periods 4 Sum of Net Assessable Assets 1,236,570,445.70 Average Assessable Assets 236,971,959.60 No. of reporting periods 5 Prorated No. of months as RB/TB 10/12 2/12 Average Assessable Assets 247,314,089.14 Prorated Average Assessable Assets 197,476,633.00 39,495,326.60 ASF rate for TB (1/28 of 1%) 0.000357142857143 Applicable ASF Rates 0.00025 0.00025 0.000357142857143 ASF for 2024 88,326.46 2023 ASF Recomputation (RB A + TB A) 49,369.16 14,105.47 63,474.63 Under/(Over) Collection of 2023 ASF* 4,231.64 ASF collected for 2023 59,242.99 59,242.99 Total ASF for 2024 for TB A 92,558.10 Under/(Over) Collection of 2023 ASF* 4,231.64 Computation of 2024 ASF Recomputation 2023 ASF (Based on 2022 Net Assessable Assets) TB A will be charged the applicable rate for the equivalent number of months as RB/TB in 2023. The difference in the amount collected as 2023 ASF will be added as an adjustment to the 2024 ASF.

Scenario D: TB A downgraded to RB A in November 2023 ASF actual collection for 2023 2023 Net Assessable Assets As TB A As TB A As RB A Total Jan 242,849,367.14 Feb 242,337,276.23 Jan 233,738,443 Mar 241,288,139.49 Feb 238,413,212 Apr 240,666,674.79 Mar 243,181,476 May 241,300,200.39 Apr 248,045,106 Jun 240,813,284.40 May 253,006,008 Jul 238,639,584.15 Jun 258,066,128 Aug 236,534,588.97 Jul 263,227,451 Sep 236,631,077.94 Aug 268,492,000 Oct 232,860,322.55 Sep 273,861,840 Nov 229,900,793.89 Oct 279,339,077 Dec 229,155,336.56 Nov Sum of Net Assessable Assets 2,852,976,646.50 Dec 206,910,715 No.of reporting periods 12 Sum of Net Assessable Assets 2,766,281,455.45 Average Assessable Assets 237,748,053.88 No. of reporting periods 11 Prorated No. of months as TB/RB 10/12 2/12 Average Assessable Assets 251,480,132.31 Prorated Average Assessable Assets 198,123,378.23 39,624,675.65 ASF rate for RB (1/40 of 1%) 0.00025 Applicable ASF Rates 0.000357142857143 0.000357142857143 0.00025 ASF for 2024 62,870.03 2023 ASF Recomputation (TB A + RB A) 70,758.35 9,906.17 80,664.52 Under/(Over) Collection of 2023 ASF* (4,245.50) ASF collected for 2023 84,910.02 84,910.02 Total ASF for 2024 for RB A 58,624.53 Under/(Over) Collection of 2023 ASF* (4,245.50) RB A will be charged the applicable rate for the equivalent number of months as TB/RB in 2023. The difference for the amount collected as 2023 ASF will be added as an adjustment to the 2024 ASF. 2023 ASF (Based on 2022 Net Assessable Assets) Recomputation Computation of 2024 ASF

2. Consolidation: Two or more entities combine to form a new single entity. The original entities cease operations after
   the new entity started its operations.
   Scenario E: RB C and TB C consolidated in January 2024 to form a new TB D. Since the consolidation was effected prior to the assessment for 2024 ASF, the 2023 Net Assessable Assets of the two banks will be combined and the TB rate will be applied. RB C TB C TB D Jan 164,658,792.00 164,658,792.00 Feb 163,861,844.80 163,861,844.80 Mar 21,928,504.00 165,311,225.60 187,239,729.60 Apr 153,357,155.20 153,357,155.20 May 154,301,374.40 154,301,374.40 Jun 22,295,142.15 168,488,963.20 190,784,105.35 Jul 170,373,352.00 170,373,352.00 Aug 170,278,228.80 170,278,228.80 Sep 22,320,467.05 168,700,764.00 191,021,231.05 Oct 168,186,770.40 168,186,770.40 Nov 177,710,888.80 177,710,888.80 Dec 22,383,648.40 192,866,280.80 215,249,929.20 Sum of Net Assessable Assets 2,107,023,401.60 No. of reporting periods 12 Average Assessable Assets 175,585,283.47 ASF rate for TB (1/28 of 1%) 0.000357142857143 ASF for 2024 for TB D 62,709.03 2023 Net Assessable Assets

Scenario F: RB X and TB Y consolidated in November 2023 to form a new TB Z. Computation of 2024 ASF RB X TB Y TB Z RB X TB Y Total Jan 174,949,966.50 174,949,966.50 Jan 137,286,164.53 137,286,164.53 Feb 175,643,177.20 175,643,177.20 Feb 140,087,922.99 140,087,922.99 Mar 20,638,592.00 175,643,177.20 196,281,769.20 Mar 19,036,380.13 142,946,860.19 161,983,240.32 Apr 162,941,977.40 162,941,977.40 Apr 145,864,143.05 145,864,143.05 May 163,945,210.30 163,945,210.30 May 148,840,962.30 148,840,962.30 Jun 20,983,663.20 179,019,523.40 200,003,186.60 Jun 19,424,877.68 151,878,532.96 171,303,410.64 Jul 181,021,686.50 181,021,686.50 Jul 154,978,094.86 154,978,094.86 Aug 180,920,618.10 180,920,618.10 Aug 158,140,913.12 158,140,913.12 Sep 21,007,498.40 179,244,561.75 200,252,060.15 Sep 19,821,303.76 161,368,278.69 181,189,582.45 Oct 178,698,443.55 178,698,443.55 Oct 164,661,508.87 164,661,508.87 Nov 199,705,941.95 Nov 168,021,947.83 168,021,947.83 Dec 219,676,536.15 Dec 20,225,820.16 171,450,967.17 191,676,787.33 Sum of Net Assessable Assets 2,234,040,573.60 Sum of Net Assessable Assets 78,508,381.73 1,845,526,296.56 1,924,034,678.29 No. of reporting periods 12 No. of reporting periods 4 12 12 Average Assessable Assets 186,170,047.80 Average Assessable Assets 19,627,095.43 153,793,858.05 160,336,223.19 ASF rate for TB (1/28 of 1%) 0.000357142857143 Applicable ASF Rates 0.00025 0.000357142857143 0.000357142857143 ASF for 2024 for TB Z 66,489.30 2023 ASF Recomputation (RB A + TB A) 57,262.94 Under/(Over) Collection of 2023 ASF* (2,570.21) ASF collected for 2023 4,906.77 54,926.38 59,833.15 Total ASF for 2024 for TB Z 63,919.09 Under/(Over) Collection of 2023 ASF* (2,570.21) TB Z will be charged the applicable rate as TB in 2023. The difference in the amount collected as 2023 ASF will be added as an adjustment to the 2024 ASF. 2023 Net Assessable Assets 2023 ASF (Based on 2022 Net Assessable Assets) ASF actual collection for 2023

3. Merger: One entity absorbs another entity and continue to operate as the surviving entity while the absorbed entity ceases to operate
   The quarterly 2023 Net Assessable Assets of RB D will be combined with the monthly 2023 Net Assesable Assets of TB E and the TB rate will be applied. RB D TB E Total Jan 154,367,617.50 154,367,617.50 Feb 153,620,479.50 153,620,479.50 Mar 23,218,416.00 154,979,274.00 178,197,690.00 Apr 143,772,333.00 143,772,333.00 May 144,657,538.50 144,657,538.50 Jun 23,606,621.10 157,958,403.00 181,565,024.10 Jul 159,725,017.50 159,725,017.50 Aug 159,635,839.50 159,635,839.50 Sep 23,633,435.70 158,156,966.25 181,790,401.95 Oct 157,675,097.25 157,675,097.25 Nov 173,442,606.98 173,442,606.98 Dec 23,700,333.60 187,318,015.53 211,018,349.13 Sum of Net Assessable Assets 1,999,467,994.91 No. of reporting periods 12 Average Assessable Assets 166,622,332.91 ASF rate for TB (1/28 of 1%) 0.000357142857143 ASF for 2024 for TB E 59,507.98 2023 Net Assessable Assets Scenario G: RB D and TB E merged in January 2024 with TB E as the surviving entity

Scenario H: RB A and TB A merged in December 2023 with TB A as the surviving entity Computation of 2024 ASF RB A TB A Total Recomputation RB A TB A TB A Jan 549,972,808 549,972,808 Jan 242,849,367.14 242,849,367.14 Feb 577,471,448 577,471,448 Feb 242,337,276.23 242,337,276.23 Mar 252,070,870.22 606,345,021 858,415,891 Mar 241,288,139.49 241,288,139.49 482,576,278.98 Apr 636,662,272 636,662,272 Apr 240,666,674.79 240,666,674.79 May 668,495,385 668,495,385 May 241,300,200.39 241,300,200.39 Jun 277,277,957.24 701,920,154 979,198,112 Jun 240,813,284.40 240,813,284.40 481,626,568.80 Jul 737,016,162 737,016,162 Jul 238,639,584.15 238,639,584.15 Aug 773,866,970 773,866,970 Aug 236,534,588.97 236,534,588.97 Sep 305,005,752.96 812,560,319 1,117,566,072 Sep 236,631,077.94 236,631,077.94 473,262,155.88 Oct 853,188,335 853,188,335 Oct 232,860,322.55 232,860,322.55 Nov 895,847,751 895,847,751 Nov 229,900,793.89 229,900,793.89 Dec 940,640,139 940,640,139 Dec 229,155,336.56 229,155,336.56 458,310,673.12 Sum of Net Assessable Assets 9,588,341,344.08 Sum of Net Assessable Assets 947,887,838.39 2,852,976,646.50 3,800,864,484.89 No. of reporting periods 12 No. of reporting periods 4 12 12 Average Assessable Assets 799,028,445.34 Average Assessable Assets 236,971,959.60 237,748,053.88 316,738,707.07 ASF rate for TB (1/28 of 1%) 0.000357142857143 Applicable ASF Rates 0.00025 0.000357142857143 0.000357142857143 ASF for 2024 285,367.30 Recomputed 2023 ASF (TB A) 113,120.97 Under/(Over) Collection of 2023 ASF* (31,032.04) ASF collected for 2023 59,242.99 84,910.02 144,153.01 Total ASF for 2024 for TB A 254,335.26 Under/(Over) Collection of 2023 ASF* (31,032.04) TB A will be charged the applicable rate as TB in 2023. The difference for the amount collected as 2023 ASF will be added as an adjustment to the 2024 ASF. 2023 ASF (Based on 2022 Net Assessable Assets) ASF Collected for 2023 2023 Net Assessable Assets

4. Amendment of reports used in the computation of ASF
   The 2023 ASF will be recomputed and the resulting under/(over) collection will be added to/deducted from the 2024 ASF. 2023 Net Assessable Assets RB E Original Amended Jan Jan Feb Feb Mar 19,864,644.80 Mar 18,522,548.05 18,522,548.05 Apr Apr May May Jun 20,196,775.83 Jun 19,605,793.15 19,605,793.15 Jul Jul Aug Aug Sep 20,219,717.21 Sep 20,644,771.95 20,644,771.95 Oct Oct Nov Nov Dec 20,276,952.08 Dec 21,484,407.05 21,883,458.27 Sum of Net Assessable Assets 80,558,089.92 Sum of Net Assessable Assets 80,257,520.20 80,656,571.42 No. of reporting periods 4 No. of reporting periods 4 4 Average Assessable Assets 20,139,522.48 Average Assessable Assets 20,064,380.05 20,164,142.85 ASF rate for RB (1/40 of 1%) 0.00025 ASF rate for RB (1/40 of 1%) 0.00025 0.00025 ASF for 2022 5,034.88 Recomputed ASF for 2023 5,041.04 Under/(Over) Collection of 2021 ASF* 24.94 ASF collected for 2023 5,016.10 5,016.10 Total ASF for 2022 for RB E 5,059.82 Under/(Over) Collection of 2023 ASF* 24.94 Computation of 2024 ASF Recomputation of 2023 ASF 2020 Net Assessable Asssets RB E Scenario I: RB E amended its Dec 2022 FRP in January 2024

5. Inclusion of the regulatory Standard Business Loan Application Form (SBLAF) incentive as a reduction in the computation of the ASF.
   Reduction should be equivalent to twenty percent (20%) of the assessed ASF or Two Million Pesos, whichever is lower. 2023 Net Assessable Assets 2023 Net Assessable Assets Jan Jan 34,970,308,868.16 Feb Feb 34,896,567,777.12 Mar 241,288,139.49 Mar 34,745,492,086.56 Apr Apr 34,656,001,169.76 May May 34,747,228,856.16 Jun 240,813,284.40 Jun 34,677,112,953.60 Jul Jul 34,364,100,117.60 Aug Aug 34,060,980,811.68 Sep 236,631,077.94 Sep 34,074,875,223.36 Oct Oct 33,531,886,447.20 Nov Nov 33,105,714,320.16 Dec 229,155,336.56 Dec 32,998,368,464.64 Sum of Net Assessable Assets 947,887,838.39 Sum of Net Assessable Assets 410,828,637,096.00 No. of reporting periods 4 No. of reporting periods 12 Average Assessable Assets 236,971,959.60 Average Assessable Assets 34,235,719,758.00 ASF rate for RB (1/40 of 1%) 0.00025 ASF rate for TB (1/28 of 1%) 0.000357142857143 Gross ASF for 2024 59,242.99 Gross ASF for 2024 12,227,042.77 Regulatory SBLAF incentive 11,848.60 Regulatory SBLAF incentive 2,000,000.00 Net ASF for 2024 47,394.39 Net ASF for 2024 10,227,042.77 Scenario J: SBLAF incentive is 20% of the assessed ASF Scenario K: SBLAF incentive is 2,000,000.00