*SGVFS039013*INDEPENDENT AUDITOR’S REPORTThe Board of Directors and StockholdersUnion Bank of the PhilippinesUnionBank PlazaMeralco Avenue corner Onyx street and Sapphire Road,Ortigas Center, Pasig CityReport on the Consolidated and Parent Bank Financial StatementsOpinionWe have audited the consolidated financial statements of Union Bank of the Philippines and itssubsidiaries (the Group) and the parent bank financial statements of Union Bank of the Philippines (theParent Bank), which comprise the consolidated and parent bank statements of financial position as atDecember 31, 2019 and 2018, and the consolidated and parent bank statements of income, consolidatedand parent bank statements of comprehensive income, consolidated and parent bank statements ofchanges in capital funds and consolidated and parent bank statements of cash flows for the years endedDecember 31, 2019 and 2018, and notes to the consolidated and parent bank financial statements,including a summary of significant accounting policies.In our opinion, the accompanying consolidated and parent bank financial statements present fairly, in allmaterial respects, the financial position of the Group and the Parent Bank as at December 31, 2019 and2018, and their financial performance and their cash flows for the years ended December 31, 2019 and2018 in accordance with Philippine Financial Reporting Standards (PFRSs).Basis for OpinionWe conducted our audits in accordance with Philippine Standards on Auditing (PSAs). Ourresponsibilities under those standards are further described in theAuditor’s Responsibilities for the Auditof the Consolidated and Parent Bank Financial Statementssection of our report. We are independent ofthe Group and the Parent Bank in accordance with the Code of Ethics for Professional Accountants in thePhilippines (Code of Ethics) together with the ethical requirements that are relevant to our audit of theconsolidated and parent bank financial statements in the Philippines, and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.Key Audit MattersKey audit matters are those matters that, in our professional judgment, were of most significance in ouraudit of the consolidated and parent bank financial statements of the current period. These matters wereaddressed in the context of our audit of the consolidated and parent bank financial statements as a whole,and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For eachmatter below, our description of how our audit addressed the matter is provided in that context.