1. 1 Proving core business potency in the new landscape

2. 2 New Realities, New Chemistry Primacy of strong customer relationship s Return to core banking practices Emphasis on leaner cost structures Prominenc e of risk culture Focus on competitive advantage Competitio n for deposits

3. 3 UnionBank’s long-term strategic imperatives Resilient strategy framework Re-energized brand Risk-adjusted returns Robust resource base Resurgent loan & securities Solid profitability through improved recurrent income Healthy interest margins Asset quality preservation Customer franchise expansion Commitment to exceptional customer satisfaction and loyalty Brand values of expertise, relevance, and challenging convention Adherence to governance principles of transparency and sound risk management Disciplined approach to pricing risk factors in support of a more aggressive lending posture Acceleration in deposit base through improved sales management and product development systems Excellence in service quality and leading edge in innovation Emphasis on more sustainable revenue sources through expansion in loans & securities Broadening market reach with strong bias for reputable and high-growth industries

4. 4 Net income position in 2008 suppressed by reduced gains from capital markets 2008 Performance: Stability in tumultuous times 31% Net income (in million pesos) Non-interest income (in million pesos) 21% Net trading gains (in million pesos) 78%

5. 5 Interest income (in billion pesos) Increasing dominance of recurrent earnings provided buffer versus sharp market volatilities 2008 Performance: Stability in tumultuous times +46% +40%

6. 6 Net interest income (in million pesos) 2008 Performance: Stability in tumultuous times 1.0 B Change in interest income & expense (in million pesos) Interest incomeInterest expense 1.0 B Net interest position boosted by the twin-strategy of higher interest income & reduced interest expense

7. 7 Net interest margin Margin improvement endured even in challenging market conditions % 2008 Performance: Stability in tumultuous times

8. 8 Efficiency gains helped decrease operating expenses even with greater transaction volumes 2008 Performance: Stability in tumultuous times 2% Operating expenses (in million pesos)

9. 9 51% Unyielding surge in deposit base a testament to UnionBank’s sustainable growth 2008 Performance: Stability in tumultuous times Outstanding deposits (in billion pesos)

10. 10 Smart Banking led to deposit growth ahead of FOCUS 2010 program 2008 Performance: Stability in tumultuous times Superior sales management system Robust product management process Excellence in service quality & efficiency 10-year CAGR UBP = 26.4% Industry = 7.8%* *based on Sept 2008 BSP data Outstanding deposits (in billion pesos) Constant quest for innovation

11. 11 55.6 38.5 +55% +9% +25% +27% +44% 2008 Performance: Stability in tumultuous times Strong expansion in loan portfolio supported by both consumer and non-consumer market segments Loan breakdown (net of allowance & bills purchased, in billion pesos) 10-year CAGR UBP = 18.1% Industry = 3.8%* *based on Sept 2008 BSP data Quality loan growth anchored on prudence & risk consciousness Preservation of healthy loan spreads Inclination towards industries of known strength & resilience

12. 12 2008 Performance: Stability in tumultuous times Strong credit quality maintained through sound risk management practices Net non-performing loans* *NPLs net of reserves; Loans net of IBCL

13. 13 GENERAL OUTLOOK  Cautious optimism on the macroeconomy & overall financial system  Higher interest rates late in the year on deficit spending & offshore funding  Steady credit volumes & increasing margins  Diminishing volatility with emerging opportunities for trading gains SPOTTING OPPORTUNITIES Shape of business portfolio Operating and governance models Strategy for establishing competitive advantage Approach to talent management 2009 Strategic thrust: Investing for the upturn