Investment Securities at Amortized Cost Sample Clauses

Investment Securities at Amortized Cost. Investment securities at amortized cost as of December 31, 2017 and 2016 consist of: Group Parent Company 0000 0000 0000 0000 Government securities P 39,044 P 25,990 P 29,379 P 21,866 Corporate debt securities 20,934 25,874 18,762 22,976 P 59,978 P 51,864 P 48,141 P 44,842 The breakdown of these investment securities at amortized cost by currency is shown below. Group Parent Company 0000 0000 0000 0000 Philippine peso P 9,934 P 11,322 P 2,634 P 4,300 Foreign currencies 50,044 40,542 45,507 40,542 P 59,978 P 51,864 P 48,141 P 44,842 Interest rates per annum on government securities and corporate debt securities range from 2.13% to 8.60% in 2017, 2.13% to 8.44% in 2016 and 1.63% to 8.44% in 2015 for peso denominated securities and 1.63% to 10.63% in 2017, 1.40% to 10.63% in 2016 and 1.40% to 10.63% in 2015 for foreign currency denominated securities. Certain government securities are deposited with the BSP as security for the Group’s faithful compliance with its fiduciary obligations in connection with its trust operations (see Note 27). In 2017, the Parent Company disposed of certain peso and US dollar-denominated bonds under its HTC portfolio and classified as investment securities at amortized cost with aggregate carrying amount of P22,279, resulting in gains amounting to P683. The disposal was made in connection with the Parent Company’s adoption of PFRS 9 (2014) in 2018 which would require additional allowance for impairment on certain financial assets under the expected credit loss model, and as a result, may diminish the Parent Company’s existing level of qualifying capital. The disposal also aims to ensure the Parent Company’s continuing regulatory compliance with the required minimum CET 1 ratio. In 2016, the Parent Company and RSB also disposed of certain investment securities under its HTC portfolio with total carrying amount of P54,906 which resulted in net gains of P1,352. Those investments were disposed of in compliance with regulatory capital and liquidity requirement. Gains arising from these disposals were recognized as part of Trading and Securities Gains account in the 2017 and 2016 statements of profit loss. Management had assessed that the Group’s and Parent Company’s disposals of the investment securities during those periods are consistent with the Group’s HTC business model for the portfolio with the objective of collecting contractual cash flows and have qualified under the permitted sale events set forth in the Group’s business mode...
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Related to Investment Securities at Amortized Cost

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