Section 23Sec./Art. 23

Allocation of Net Profit and Unrestricted Retained Earnings. At the close of each calendar year, the Veterans Bank shall include in the determination of its net profit the provisions for impairment allowances, in accordance with pertinent BSP rules and regulations, and the net profit arrived thereat shall be allocated, as follows:

(a) Twenty percent (20%) of such net profit shall accrue to the reserve account; and

(b) From the remaining amount of the net profit after deducting the amount accrued to the reserve account shall be deducted the guaranteed earnings of the preferred shares and the ten percent (10%) dividends on common shares: Provided, however, That the declaration of these individuals shall be out of the unrestricted and free retained earnings in accordance with the pertinent provisions of Republic Act No. 11232, Republic Act No. 8791, and the BSP rules and regulations.

Thereafter, twenty percent (20%) of the net profit after deducting the guaranteed earnings of the preferred shares and the ten percent (10%) dividends on common shares, or the amount of Thirty million pesos (P30,000,000.00), whichever is lower, shall be paid in cash to the BTVWW II as hereinafter provided in Section 24 hereof for disposition and shall be available for grant-in-aid to veterans their widows, orphans, or compulsory heirs, for educational, social, charitable, and rehabilitation purposes, to organizations doing service for the cause of the veterans, which maximum limit may be increased upon mutual agreement between the Veterans Bank and the BTVWW II: Provided, That the latter shall render an accounting of the funds received from the former and shall be audited annually by a reputable external auditing firm.

The remaining profits shall be at the disposition of the Board of Directors of the Veterans Bank in accordance with the pertinent provisions of Republic Act No. 11232, Republic Act No. 8791, and the BSP rules and regulations.