RICA CAMILLE S.

GABRIEL

CERTIFIED PUBLIC ACCOUTANT

62 CAINGIN, SAN RAFAEL, BULACAN

Cellphone #: 09951700878

The Board of Directors

EastWest Bank
Makati City

Report of the Financial Statements:

I have audited the accompanying financial statements of EastWest Bank which comprise the
statement of financial position as at December 31, 2014 and the statement of financial
performance, statement of cash flow, and statement of changes in equity in the fiscal year ended
June 30, 2017.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements
in accordance with Philippine Financial Reporting Standard ; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair
presentation of consolidated financial statements that are free from material misstatement,
whether due to fraud or error.

Auditor's Responsibility

My responsibility is to express an opinion on these financial statements based on our audits. I

conducted my audits in accordance with Philippine Standards on Auditing. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entity's preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity's internal control.
Accordingly, I express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statement.

I believe that the audit evidence we have obtained is sufficient and appropriate to provide a
reasonable basis for our audit opinion.

Basis for Adverse Opinion:

As explained in note 1, the company has not consolidated the financial statements of subsidiary
of Standard Chartered Bank Philippines it acquired during 2016 because it has not yet been able
to ascertain the fair values of certain of the subsidiarys material assets and liabilities at the
acquisition date. This investment therefore accounted for on a cost basis. Under Philippine
Financial Reporting Standards, the subsidiary should have been consolidated because it is
controlled by company. Had Standard Chartered Bank Philippines been consolidated, many
elements in the accompanying financial statements would have been materially affected. The
effects on the consolidated financial statements of the failure.

Opinion

In my opinion, because of the significance of the matter discussed in the basis for adverse
opinion paragraph, the consolidated financial statements do not present fairly ( or do not give a
true and fair view of) the financial position of EastWest Bank and its subsidiaries as at June 30,
2017, and of their financial performance and their cash flows for the fiscal year ended June 30,
2017 in accordance with Philippine Financial Reporting Standards.

RICA CAMILLE S. GABRIEL

Bd. Cert No. 190010

PRT NO. 7101998

January 28, 2017, San Rafael, Bulacan

TIN No. 090320161

BIR Accreditation No. 08-001998-61-2016

February 27, 2016, valid until February 26, 2019

SEC Accreditation No. 0466-AR-3 (Grp. A)

February 09, 2017, valid until February 08, 2020