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11 May 2012

THE PHILIPPINE STOCK EXCHANGE INC.Disclosure Department3F Philippine Stock Exchange Plaza

Ayala Triangle, Ayala AvenueMakati City, Philippines 1226

Attention: Ms. Janet A. EncarnacionHead, Disclosure Department

Dear Ms. Encarnacion,

We would like to submit the attached SEC 17-Q report of Philippine SavingsBanks (PSBank) for the period ended 31 March 2012.

We hope that you will find everything in order.

Thank you very much.

Very truly yours,

Perfecto Ramon Z. Dimayuga Jr.SVP and Chief Finance Officer

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COVER SHEET

1 5 5 5 2

SEC Registration Number

P H I L I P P I N E S A V I N G S B A N K

(Companys Full Name)

P S B a n k C e n t e r , 7 7 7 P a s e o d e R o x a s

c o r n e r S e d e o S t r e e t , M a k a t i C i t

y

(Business Address: No. Street City/Town/Province)

Perfecto Ramon Z. Dimayuga Jr. 885-8208(Contact Person) (Company Telephone Number)

1 2 3 1 1 7 - Q 1st Quarter 2012

Month Day (Form Type) Month Day(Fiscal Year) (Annual Meeting)

(Secondary License Type, If Applicable)

SEC-Corporation Finance

Dept. Requiring this Doc. Amended Articles Number/Section

Total Amount of Borrowings

1,659

Total No. of Stockholders

As of March 31, 2012Domestic Foreign

To be accomplished by SEC Personnel concerned

File Number LCU

Document ID Cashier

S T A M P S

Remarks: Please use BLACK ink for scanning purp

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SEC FORM 17-Q

QUARTERLY REPORT PURSUANT TO SECTION 17 OFTHE SECURITIES REGULATION CODE

1. For the quarterly period ended: March 31, 2012

2. Commission identification number: 15552

3. BIR tax identification number: 000-663-983-000

4. Exact name of registrant as specified in its charter:

o PHILIPPINE SAVINGS BANK

5. Province, country or other jurisdiction of incorporation or organization:

o City of Manila, Philippines

6. Industry classification code: (SEC Use Only)

7. Address of registrants principal office:

o PSBank Center, 777 Paseo de Roxas cor. Sedeo St., Makati City

8. Registrants telephone number, including area code

o (632) 885-8208

9. Former name, former address and former fiscal year, if changed since last report:

o Not applicable

10. Securities registered pursuant to Sections 4 and 8 of the RSA:

o Title of each class Common Shares

o Number of shares of common stock outstanding 240,252,491

o Amount of debt outstanding P 2,967,967,076

(Tier II Subordinated Notes)

11. Are any or all of the securities listed on the Philippine Stock Exchange?

o Yes

12. Indicate by check mark whether the registrant:

(a) has filed all reports required to be filed by Section 17 of the Securities Regulation Codeand Sections 26 and 141 of the Corporation Code of the Philippines, during thepreceding 12 months (or for such shorter period the registrant was required to file suchreports).

Yes [ x ] No [ ]

(b) has been subject to such filing requirements for the past 90 days.

Yes [ x ] No [ ]

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PART I FINANCIAL INFORMATION

Item 1. Management Discussion and Analysis of Financial Condition

and Results of Operations

Item 2. Financial Statements

Attached are the following:

Statements of Condition Annex 1

Statements of Income Annex 2

Statements of Income Annex 2A

Statements of Changes in Equity Annex 3

Statements of Comprehensive Income Annex 4

Statements of Cash Flows Annex 5

Aging of Receivables Annex 6

Statement of Condition Business Segment Annex 7

Statement of Income Business Segment Annex 8

PART II OTHER INFORMATION

1. Control of Registrant

The following stockholders own more than 5% of the total outstanding number of sharesissued as of March 31, 2012:

Name of Stockholder

Outstanding

Number of Shares

Percent to Total

No. of SharesMetropolitan Bank and Trust Co. 182,535,895 75.977%

PCD Nominee Corp. (Filipino) 14,870,753 6.190%

Danilo L. Dolor 12,610,891 5.249%

As of March 31, 2012, there is no person who holds more than 5% of the Banks securitieslodged with PCD Nominee Corporation.

2. Legal Proceedings

The Bank is a defendant in legal actions arising from normal business activities. Management

believes that the ultimate liability, if any, resulting from these cases will not have a material

effect on the Banks financial statements.

3. Board Resolutions

All material disclosures of the Bank had been made under SEC 17-C.

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PHILIPPINE SAVINGS BANKSEC FORM 17-Q

FOR THE QUARTER ENDED MARCH 31, 2012

Item 1. Management Discussion and Analysis

A. Analysis of Statements of Condition

As of March 31, 2012 and March 31, 2011 (Unaudited)

The Banks Total Assets as of March 31, 2012 grew by 12.41% or P13.00 billion to P117.80 billioncompared to March 2011 level of P104.80 billion due to the flow of funds from various sources suchas deposits and subordinated notes. The additional funds were distributed mainly to loans andreceivables, interbank loans, placements with the BSP and deposits with other banks.

Loans and Receivables, net of allowance and unearned interest discounts, representing 50.64% oftotal assets, posted a growth of 9.75% to P59.66 billion versus the P54.36 billion recorded theprevious year. Auto, mortgage and commercial loans registered a double-digit growth of 12.58%,10.45% and 14.19%, respectively.

Due from BSP increased by 95.76% or P2.39 billion to P4.88 billion versus the P2.49 billion recordedthe previous year. Likewise, Due from Other Banks went up by P5.52 billion to P6.55 billion fromP1.03 billion.

Available for Sale Investments decreased by 65.79% or P13.50 billion to P7.02 billion as the Banktook advantage of the trading opportunities in its AFS portfolio. The decline was offset by thesubstantial increase in Interbank Loans Receivable and Securities Purchased under ResaleAgreements (SPURA) which grew by 381.11% or P12.35 billion to P15.59 billion in March 2012versus P3.24 billion during the same period last year.

Held to Maturity Investments climbed by 40.88% or P3.91 billion to P13.50 billion compared to year-ago level of P9.58 billion. On the other hand, Fair Value through Profit or Loss Investments (FVPL)was lower by 93.42% or P2.83 billion to P199.46 million. Meanwhile, Cash and Other Cash Items

decreased by 15.33% to P2.08 billion from P2.45 billion.

Investments in an Associate and a Joint Venture represent 25% interest in Toyota Financial ServicesPhilippines Corporation (TFSPC) and 40% interest in Sumisho Motor Financing Corporation (SMFC).This account increased to P1.24 billion from P837.86 million due to capital infusion to SMFC in August2011. The Banks 25% stake in TFSPC, posted a 13.39% increase or P63.03 million to P533.60million from P470.57 million in March 2011 due to recognition of share in associates profit.

Year-on-year, Deferred Tax Asset increased by 38.44% or P276.11 million to P994.37 millioncompared to year-ago level of P718.27 million due to the recognition of future tax benefits inconnection with the revised allocation of expenses under Revenue Regulation No. 4-2011.

Meanwhile, Property and Equipment went up by 9.33% or P201.83 million to P2.37 billion due toexpansion of ATM network and opening of new branches. As of March 31, 2012 and 2011, the Bankhad 206 and 184 branches, respectively.

Goodwill and Other Intangible Assets increased to P254.41 million from P234.92 million posted lastyear. On the other hand, Other Assets decreased by 41.32% or P552.70 million to P784.86 billionfrom P1.34 billion the previous year mainly due to decrease in prepaid expenses.

The Banks deposit, level representing 93.50% of total liabilities, increased by 7.35% or P6.60 billion toP96.41 billion from P89.80 billion as the Bank continued to benefit from its continued expansion ofbranch and ATM network. Demand Deposit grew by 60.55% or P4.30 billion while Savings Depositalso improved by 9.36% or P973.86 million to P11.38 billion. Meanwhile, Time Deposits slightlyincreased by 1.83% or P1.33 billion from P72.28 billion during same period last year.

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The Bank also generated funds from the issuance of P3.00 billion Unsecured Subordinated Notes(Tier II) on February 20, 2012. As of March 31, the Tier II Notes net of debt issuance cost amounted toP2.97 billion. The Notes were rated Aaa by Philratings.

The Bank reflected Financial Liabilities at FVPL amounting to P2.47 million in March 2012 due to thedecline in the market value of foreign currency forward contracts, while Other Liabilities went up to

P1.49 billion from P1.40 billion in 2011.

As of end of first quarter of 2012, Capital funds were posted at P14.69 billion, P2.87 billion or 24.30%higher versus the same period last year on account of the high earnings recorded during the twelve-month period. Mark-to-market (MTM) Gain on Available-for-Sale investments was recorded at P1.04billion as of March 2012 compared to P318.12 million last year. As of March 31, 2012 and 2011, theBank recorded loss on Cumulative translation adjustment under equity amounting to P50.92 millionand P56.31 million, respectively.

As of March 31, 2012 (Unaudited) and December 31, 2011 (Audited)

The Banks Total Assets stood at P117.80 billion, 2.04% or P2.45 billion lower than the December2011 level of P120.25 billion.

Held-to-Maturity Investments and Fair Value through Profit or Loss Investments increased by P1.19billion P144.67 million, respectively. On the other hand, Available-For-Sale Investments decreased by62.45% or P11.67 billion from P18.70 billion in December 2011 to P7.02 billion in March 2012 as theBank took advantage of the trading opportunities in its AFS portfolio.

The proceeds from the sale of investments were mostly placed in Interbank Loans Receivable andSecurities Purchased under Resale Agreements, which increased by 48.74% or P5.11 billion toP15.59 billion compared to December 2011 level of P10.48 billion. Meanwhile, Loans andReceivables, net of allowance and unearned interest discounts, were recorded at P59.66 billion,higher by 2.52% or P1.47 billion from year-end level of P54.36 billion. Due from Bangko Sentral ngPilipinas also increased by 13.40% or P576.60 million to P4.88 billion in March 2012 versus the P4.30billion posted in December 2011.

Due from Other Banks went up by 75.30% or P2.81 billion to P6.55 billion from year-end level of P3.74billion. On the other hand, Cash and Other Cash Items declined by 47.00% or P1.84 billion to P2.08billion in March 2012 against the P3.92 billion year-end balance. Deferred Tax Asset decreased by12.74% to P994.37 million, while Other Assets increased by 5.82% or P43.19 million to P784.86 billionfrom P741.67 million in December 2011.

The Banks total deposits as of March 2012 went down to P96.41 billion from P101.55 billion, whileUnsecured Subordinated Notes were posted at P2.97 billion versus nil in December on account of theP3.00 billion Tier II issuance in February 2012.

Accrued Taxes, Interest and Other Expenses increased by 25.42% or P307.06 million while FinancialLiabilities at FVPL amounted to P2.47 million as of March 2012 versus none at year-end.

Total Capital stood at P14.69 billion, 5.47% lower than the P15.54 billion posted in December 2011due to movement in the mark-to-market gain on AFS portfolio.

B. Discussion of Results of Operations

For the periods ended March 31, 2012 and March 31, 2011 (Unaudited)

The Bank recorded a Net Income after Tax of P545.91 billion for the first quarter of 2012, 93.71% orP264.09 million percent higher compared the same period last year, as the Bank took advantage ofthe opportunities in its investment portfolio. The record income is likewise supported by strong growthfrom its loan portfolio.

The Banks core lending business posted an increase in interest income from loans andreceivables of 7.49% to P1.65 billion, better than the P1.54 billion recorded in the same period lastyear. In addition, interest earned from Interbank Loans Receivable and Securities Purchased under

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Resale Agreements significantly rose by 125.96% or P38.57 million to P69.20 million versus P30.62million recorded in March 2011. Likewise, Interest earned from deposits with BSP increased to P17.95million, 39.58% higher than P12.86 million a year ago.

On the other hand, interest income from Due from Other Banks dropped from P1.44 million to P0.78million this quarter. Likewise, interest income on Investment Securities decreased by 4.95% to

P493.71 million from P519.42 million in March 2011.

The 7.35% year-on-year growth in deposit resulted to an increase in Interest Expense by 10.87% toP802.13 million versus P724.47 million recorded last year. In addition, Interest Expense onSubordinated Notes and Bills Payable increased by 27.67% to P21.49 million from P16.83 millionmainly due to the issuance of Tier II Subordinated Notes in February 2012.

As a result, Net Interest Income reached P1.41 billion from P1.36 billion last year or a 3.61% increase.Net Service Fees and Commission were recorded at P210.07 million versus P176.31 million a yearago due to increase in loan bookings for the period.

The Banks Gains on foreclosure of investment properties and chattel decreased by P30.26 million toP9.36 million as of March 2012 compared with the P39.90 million it posted during the same period lastyear. Moreover, the Bank recorded a loss from sale of investment properties, chattel and property and

equipment of P7.13 million in March 2012 compared to P17.65 million gain same period last year.

The Bank posted a P5.49 million Foreign Exchange Loss for the first quarter of 2012 compared to theP2.21 million loss it recorded a year ago, while Miscellaneous Income was lower at P37.78 millionversus P57.25 million income for the first quarter last year.

The Banks Other Operating Expenses increased by P1.28 billion to P2.53 billion from the year agolevel of P1.25 billion. The variance can be attributed mainly to the increase in provision for impairmentand credit losses. In line with its thrust to further strengthen its balance sheet, the Bank set aside atotal of P714.74 million provisions for credit loss as of March 2012 compared to the P67.65 millionprovision in the same period last year.

Occupancy and equipment costs increased by 22.30% or P24.39 million to P133.75 million due tobranch and ATM expansion during the year. The Bank installed eleven ATMs during the first quarterbringing the total ATMs to 515 as of March 2012. The Bank now ranks 7

thlargest ATM network in the

country. In addition, the Bank also opened six additional branches thus increasing its branch networkto 206.

Meanwhile, Security, messengerial and janitorial services was higher by 47.74% or P22.20 million toP68.71 million from the P46.50 million recorded as March 2011. Year on year, Depreciation andamortization of properties also went up by 26.52% or P25.30 million. Likewise, Amortization ofSoftware Costs increased by 21.17% or P2.45 million to P14.00 million. Taxes and Licenses rose by28.49% or P61.90 million due to increase in local taxes brought about by a larger branch and ATMnetwork.

The Bank also posted income from its investment in Toyota Financial Services and Sumisho MotorFinance Corporation amounting to P2.57 million as of March 2012.

C. Analysis of Key Performance Indicators

The following basic ratios measure the financial performance of the Bank:

March 31 December 31

2012 2011 2011

(Unaudited) (Audited)

Return on Average Assets ROAA 1.83% 1.08% 1.81%Return on Average Equity ROAE 14.45% 9.62% 14.94%Net Interest Margin on

Average Earning Assets NIM 5.05% 5.62% 5.49%Capital-to-Risk Assets Ratio CAR 18.02% 12.96% 13.93%Earnings per share EPS 2.27 1.17 8.44

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March 2012 vs. March 2011 Comparative highlights on key performance indicators

1. Return on Average Assets (ROAA) as of March 31, 2012 went up to 1.83% from 1.08% recordedpreviously. ROAA is calculated by dividing the annualized net income by the year-on-year average ofthe outstanding total assets.

2. Return on Average Equity (ROAE) increased to 14.45% in March 2012 from 9.62% in March2011. ROAE measures how well the Bank is using common shareholders invested money. It iscalculated by dividing the annualized net income by the year-on-year average of the outstandingshareholders equity.

3. Net Interest Margin on Average Earning Assets (NIM) dropped from 5.62% of the previous year to5.05% this year. NIM is calculated by dividing the net interest income by the average earning assets.

4. Capital to Risk Ratio (CAR) improved to 18.02% in 2012 from 12.96% reported last March 2011due to the issuance of Unsecured Subordinated Notes last February 2012. CAR is the measure of theBanks capital strength. It is calculated by dividing the qualified capital by risk-weighted assets asdefined by the Bangko Sentral ng Pilipinas (BSP).

5. Earnings per Share (EPS) improved from P1.17 as of March 2012 compared to P2.17 in March

2011. EPS is the net profit the Bank has generated per common share. It is computed by dividing theyear to date net income by the weighted average number of outstanding common shares.

D. Key Variables and Other Qualitative and Quantitative Factors

Liquidity

PSBank manages its liquidity position to ensure that it has more than adequate funds to meet itsobligations at any given time. The Bank monitors its daily liquidity and reserve position by determininginflows and outflows, short-term and long-term obligations, holdings and repayments. Short-termliquidity management identifies obligations and repayments in the next 12-months, aids in thedetermination of the securities trading strategy, and influences the Banks pricing mechanism. On theother hand, long-term liquidity management covers maturing obligations and repayments of loans and

investments beyond the next 12-months.

The level of liquid assets remained strong, exhibiting healthy growth in both placements withBSP/other banks and securities investments.

With the Banks high capitalization, current liquidity position, strong deposit growth trend, continuingdevelopment of retail and corporate accounts, and prudent liquidity management, PSBank does notanticipate encountering any cash flow or liquidity problems in the next 12 months. It remains confidentof its ability to meet its obligations and is committed to providing the necessary funding to support theprojected loan growth, investment activities and expenditures for 2012.

The Bank also performs liquidity stress testing under various stress scenarios to ensure its ability tomeet its funding obligations. The Bank has a Liquidity Contingency Funding Plan to anticipate andmanage any funding crisis that may occur.

Events that will Trigger Direct or Contingent Financial Obligation

In the normal course of the Bank's operations, there are various outstanding commitments and

contingent liabilities such as guarantees and commitments to extend credit, which may not be

reflected in the accompanying financial statements. The Bank, however, does not anticipate

significant losses as a result of these transactions.

Also, several suit and claims, in behalf or against the Bank in relating to its lending operations andlabor-related cases are pending before the courts and quasi-judicial bodies. In the opinion ofmanagement, these suits and claims, if decided adversely, will not involve an amount having amaterial effect on the financial statements.

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Material Off-Balance Sheet Transactions, Arrangements and Obligations

The following is a summary of the Banks commitments and contingent liabilities at their equivalent

peso contractual amounts:

31-Mar-2012 31-Mar-11 31-Dec-11

Trust Department 1,421,137,432 692,951,822 1,122,081,012

Stand-by credit line 85,116,986 107,844,430 97,307,821

Late deposits/payments received 60,892,188 55,480,861 68,471,099

Items held for safekeeping 305,560 349,278 363,447

Others 15,768 18,379 15,704

None of these off-balance sheet transactions, arising in the ordinary course, either individually or inthe aggregate, are expected to have a material adverse effect on the Banks financial condition.

Material Commitments for Capital Expenditures

The Banks Capital Expenditure target in 2012 includes projected expenses for new branches, on-siteand off-site ATMs, upgrade of bank premises including infrastructure, furniture, fixtures and

equipment, IT-related activities on systems, infrastructure, and licenses.

During the 1st

quarter of the year, the Bank opened six (6) branches in the areas of Caloocan, Cavite,

Cebu, Malabon, Taguig and Valenzuela.

As of March 31, 2012, the Bank had a total of 206 branches. The Bank targets to end the year with

about 220 branches.

Total ATMs is now at 515 units which consist of (217) onsite ATMs and (298) offsite ATMs nationwide.

The Bank plans to put up additional thirty (30) ATMs in 2012.

Causes for Any Material Changes from Period to Period of Financial Statements

See previous discussion on Analysis of Statement of Condition and Discussion of Results ofOperations.

Known Trends, Events or Uncertainties or Seasonal Aspects

The financial statements of the Bank have been prepared in compliance with Philippine FinancialReporting Standards (PFRS).

Changes in Accounting Policies and Disclosures

The accounting policies adopted are consistent with those of the previous financial year. Theissuance of and the amendments to the following standards and interpretations which becameeffective as of January 1, 2011, did not have any impact on the accounting policies, financial positionor performance of the Bank:

New Standards and Interpretations

PAS 24, Related Party Transactions (Amendment)PAS 24 clarifies the definitions of a related party. The new definitions emphasize asymmetrical view of related party relationships and clarify the circumstances in which personsand key management personnel affect related party relationships of an entity. In addition, theamendment introduces an exemption from the general related party disclosure requirementsfor transactions with government and entities that are controlled, jointly controlled orsignificantly influenced by the same government as the reporting entity.

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Improvements to PFRS

PFRS 7, Financial Instruments: DisclosuresThe amendment was intended to simplify the disclosures provided by reducing the volume ofdisclosures around collateral held and improving disclosures by requiring qualitativeinformation to put the quantitative information in context.

The issuance of and the amendments to the following Philippine Accounting Standards (PAS),PFRS and Philippine Interpretations of the IFRIC which became effective as of January 1, 2011,did not have any impact on the accounting policies, financial position or performance of the Bank:

Amendments to Standards

Philippine Interpretation IFRIC19, Extinguishing Financial Liabilities with Equity Instruments

PAS 32, Financial Instruments: Presentation (Amendment) Classification of Rights Issues

Philippine Interpretation IFRIC14 (Amendment), Prepayments of a Minimum FundingRequirement

Improvements to PFRSs 2010

PFRS 3, Business Combinations

PAS 1, Presentation of Financial Statements

PAS 27, Consolidated and Separate Financial Statements Philippine Interpretation IFRIC13, Customer Loyalty Programmes

Except for the foregoing, there are no known trends, events and uncertainties or seasonal aspects that

may effect liquidity or reverse the generally profitable results of operation of the Bank.

Compliance with Leading Practices on Corporate Governance

The Banks Corporate Governance evolves around the principles of fairness, accountability andtransparency. Corporate Governance in PSBank involves the manner in which the business andaffairs of banks are governed by the board of directors and senior management. The CorporateGovernance tone is being set from the top to:

Set corporate objectives;

Operate the banks business efficiently on a day-to-day basis;

Meet the obligation of accountability to their shareholders and take into account the interestsof other recognized stakeholders;

Align corporate activities and behaviors with the expectation that banks will operate in a safeand sound manner, and in compliance with applicable laws and regulations; and

Protect the interests of its depositors.

Assure that its employees welfare and interests are equitably taken care of.

The Bank recognizes that effective corporate governance practices are essential in achieving andmaintaining public trust and confidence in the banking system, which are critical in the bankingindustry and national economy as a whole. Indeed, in addition to the Banks responsibilities toshareholders and stakeholders, it recognizes its responsibility to its depositors.

Sound corporate governance principles are being observed by the Bank:

1. All the Board members are qualified for their positions, have a clear understanding of their role incorporate governance and can exercise sound judgment about the affairs of the Bank.

The Banks board of directors has undergone the required Corporate Governance Training. Theyunderstand and execute their oversight role, including understanding the Banks risk profile.

The Board approves the overall business strategy of the Bank, including approval of the overallrisk policy and risk management procedures. They avoid conflicts of interest, or the appearanceof conflicts, in their activities with, and commitments to, other business interests.

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The Corporate Governance Manual of the Bank was updated and approved by the Board ofDirectors last December 14, 2009.

The Board likewise provides oversight of the Senior Management of the Bank by exercising itsduty and authority to question and insist upon straightforward explanations from Management,and receives on timely basis sufficient information to judge the performance of Management.

To assure objectivity in decision making of the Board, the Bank has included independentdirectors as members. The independent directors are men of integrity, expertise and experiencewho have passed an evaluation process and attended the requisite Corporate Governancetraining.

The specialized oversight committees have taken active role in ensuring sound judgment in theexercise of the affairs of the Bank:

a. Risk Management Committee provides oversight of Senior Managements activities inmanaging credit, market, liquidity, operational, compliance, reputation and other risks of thebank. It also develops written plan defining the strategies for managing and controlling risks,and it communicates the risk management plan to affected parties.

b. Compensation and Remuneration Committee provides oversight of remuneration of Senior

Management and other key personnel and ensure that compensation is consistent with theBanks culture, objectives, strategy, and control environment, as reflected in the formulationof compensation policy. It establishes a formal and transparent procedure for developing apolicy on executive remuneration.

c. Nominations Committee provides assessment of Board effectiveness and directs theprocess of renewing and replacing Board members. It reviews and evaluates all personsnominated to the Board as well as those nominated to other positions requiring appointmentby the Board.

d. Corporate Governance Committee provides assistance to the Board in fulfilling itscorporate governance responsibilities. It ensures the Boards effectiveness and dueperformance of corporate governance principles and guidelines.

e. Audit Committee provides oversight of the Banks Financial Reporting and Control andoversees the work of internal and external audit functions; it monitors and evaluates theadequacy and effectiveness of the internal control system.

2. The principle of self assessment by the Board of Directors is strictly being complied on an annualbasis. The assessment for the 2011 performance of the Directors, the Board as a body and eachof the oversight committees were completed last January 24, 2012. The over-all results of whichwere very satisfactory.

3. The Board approves and oversees the Banks strategic objectives and corporate values that arecommunicated throughout the banking organization. The Board likewise avoids conflict ofinterests. The Board reviews and approves all the business plans and budgets, code of ethics,bank operations, internal controls and product manuals process and the corresponding updates.

4. The Board sets and enforces clear lines of responsibility and accountability throughout theorganization, consistent with prudent board policy, transparent and at an arms length basis.

5. The Board ensures that there is appropriate oversight by Senior Management consistent withBoard policy.

Senior Management consists of a core group of individuals who are responsible for overseeingthe day-to-day management of the Bank. These individuals have the necessary skills andexperience to manage the business under their supervision as well as have appropriate controlover the key individuals in their respective areas.

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Senior Officers contribute a major element of a banks sound corporate governance by overseeingline managers in specific business areas and activities consistent with policies and procedures setby the Banks Board. Senior Management under the guidance of the Board of Directorsundertakes an effective system of internal controls and wise decision-making.

6. The Board and Senior Management effectively utilize the work conducted by the internal auditors

and external auditors for a stronger internal control functions.

The Board recognizes and acknowledges that independent, competent and qualified auditors, aswell as internal control functions, which include Compliance and Legal, as important elements ofthe banks operations. In particular, the Board utilizes the work of auditors to provide anindependent check and assurance on the information received from Management on theoperations and performance of the Bank.

The Bank engages external auditors, upon the nomination of the Audit Committee to review theinternal control processes related to disclosure of financial statements.

7. The Bank is governed in a transparent manner.

The bank ensures that appropriate and timely public disclosure is a discipline that is carefully

undertaken being a publicly listed bank. Transparency is a discipline that the Bank practicesthereby sound corporate governance will continue to operate.

8. The Board and Senior Management understand the Banks operational structure.

While the Board of Directors is responsible for overall oversight and approval of policies, SeniorManagement, on the other hand is responsible for identifying and managing material risks arisingfrom all of the Banks activities. Regularly, Senior Management reports to the Board covering theoperations of the Bank: risk issues, compliance issues and internal audit findings.

9. The Board and Senior Management have conscientiously adhered to the Banks Manual ofCorporate Governance and as such, no deviation is committed and reported for disclosurepurposes.

10. Consistent with the effort to pursue continuing education and to keep abreast in Corporate

Governance, 180 Junior Officers bankwide with ranks Manager and Senior Manager completedtheir Corporate Governance training last May 2011. The Board together with Senior Executivesattended a high-level round table discussion with regulators earlier on March 24, 2009 with theaim to determine the role of corporate governance in relation to the Banks CAMELS rating andthe wider role that the former should play in effecting good governance.

11. All directors have attended and completed a 2-day seminar on Corporate Governance, percertifications submitted to SEC dated January 24, 2011. Additionally, the banks directors andselected senior officers attended a one-day comprehensive AMLA seminar participated by thedirectors and senior officers belonging to the Metrobank Groups affiliates and subsidiariesconducted by the AMLC Executive-Director last July 2011.

Other Disclosures

a) There are no unusual items of asset, liability, equity, net income or cash flow.

b) No material items of changes were noted in the comparison of actual results with estimatedamounts.

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c) Details of the Banks dividend distributions as approved by the Banks BOD and the BSPfollow:

Date of Declaration

Cash Dividends

Date of BSP

Approval

Record Date Payment DatePer

Share

Total Amount

October 28, 2008 0.15 36,037,874 Mar 6, 2009 Mar 26, 2009 April 15, 2009

January 20, 2009 0.15 36,037,874 Jun 29, 2009 July 23, 2009 Aug 7, 2009

May 18, 2009 0.15 36,037,874 Aug 17, 2009 Sep 15, 2009 Sep 30, 2009

July 28, 2009 0.15 36,037,874 Oct 20, 2009 Nov 13, 2009 Dec 1, 2009

October 13, 2009 0.15 36,037,874 Dec 15, 2009 Jan 14, 2010 Jan 28, 2010

January 19, 2010 0.15 36,037,874 Mar 8, 2010 Mar 31, 2010 Apr 16, 2010

February 19, 2010 2.75 660,694,350 Apr 22, 2010 May 17, 2010 May 31, 2010

May 17, 2010 0.15 36,037,874 Jun 15, 2010 Jul 13, 2010 Aug 3, 2010

July 27, 2010 0.15 36,037,874 Sep 6, 2010 Sep 29, 2010 Oct 14, 2010

October 14, 2010 0.15 36,037,874 Nov 15, 2010 Dec 8, 2010 Dec 23, 2010

January 20, 2011 0.15 36,037,874 Feb 23, 2011 Mar 18, 2011 Apr 4, 2011

April 4, 2011 0.15 36,037,874 May 13, 2011 Aug 4, 2011 Aug 19, 2011

August 1, 2011 0.15 36,037,874 Aug 16, 2011 Sept 8, 2011 Sept 23, 2011

October 27, 2011 0.15 36,037,874 Nov 23, 2011 Dec 20, 2011 Jan 5, 2012

January 24, 2012 0.15 36,037,874 Feb 9, 2012 Mar 8, 2012 Mar 23, 2012

April 27, 2012 0.75 180,189,368

The Board of Directors passed a resolution during its Board meeting last February 29, 2012,amending its annual Regular Cash Dividend Rate from 6% to 30% effective first quarter of2012. This translates to an increase in the Banks annual dividends to P3.00 per share fromP0.60 per share, to be paid quarterly at P0.75 per share, payable to all commonstockholders of record date. The Board approved the declaration of regular cash dividendsfor the 1

stquarter of 2012, subject to the approval of the Bangko Sentral ng Pilipinas.

PSBank stock price closed at P81.00 per share as of 31 March 2012.

d) No unregistered securities were sold or offered for sale by the Bank for the year 2012.

e) Segment revenue and result of business segments are found in Annexes 7 to 8.

f) There are no material events subsequent to the current quarterly report as ofMarch 31, 2012.

g) The Bank was not engaged in any business combinations, acquisitions or disposal ofsubsidiaries and long-term investments.

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SIGNATURES

Pursuant to the requirement of the Securities Regulation Code, the registrant has dulycaused this report to be signed on its behalf by the undersigned thereunto duly authorized.

May 10, 2012

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PHILIPPINE SAVINGS BANK

Unaudited Financial StatementsMarch 31, 2012 and 2011

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