36  CONSOLIDATED STATEMENT OF INCOME AND EXPENSES
           Rural and Cooperative Banking System        
         for the periods indicated        
         in billion pesos        
Selected Accounts TOTAL RURAL AND COOPERATIVE BANKS
2003   2004  
1st 2nd 3rd 4th 1st 2nd 3rd 4th  
Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter  
  OPERATING INCOME 2.027 4.002 6.062 8.621   2.261 4.627 7.198 9.972  
       Net Interest Income 1.362 2.673 4.035 5.893   1.542 3.178 4.890 6.900  
   
            Interest Income 2.385 4.743 7.237 10.059   2.675 5.476 8.440 11.660  
            Less: Interest Expense 1.023 2.070 3.203 4.166   1.133 2.298 3.550 4.760  
     
       Non-Interest Income 0.665 1.329 2.027 2.728   0.718 1.449 2.308 3.072  
                       
          Fee-based Income 0.488 0.995 1.507 2.045   0.520 1.055 1.687 2.221  
          Trading Income/(Loss) 0.007 0.013 0.019 0.035   0.008 0.015 0.023 0.031  
          Trust Department Income 0.000 0.000 0.000 0.000   0.000 0.000 0.000 0.000  
          Other Income/(Loss) 0.170 0.321 0.501 0.648   0.190 0.379 0.598 0.820  
  OPERATING EXPENSES 1.639 3.350 5.169 7.295   1.857 3.840 5.966 8.483  
        Bad Debts Written Off 0.006 0.005 0.019 0.055   0.009 0.019 0.033 0.071  
        Provisions for Probable Losses 0.038 0.092 0.158 0.176   0.052 0.123 0.223 0.270  
       Other Operating Expenses 1.595 3.253 4.993 7.064   1.796 3.698 5.710 8.142  
          Overhead Costs 1.087 2.198 3.360 4.702   1.188 2.455 3.813 5.394  
          Other Expenses 0.508 1.055 1.633 2.362   0.608 1.244 1.897 2.748  
                         
      NET OPERATING INCOME / (LOSS) 0.388 0.652 0.893 1.326   0.404 0.787 1.232 1.489  
         Extraordinary Credits/(Charges)   EXTRAORDINARY CREDITS/(CHARGES) 0.065 0.142 0.248 0.413   0.128 0.256 0.407 0.501  
      NET INCOME/(LOSS) BEFORE TAX 0.453 0.794 1.140 1.739   0.532 1.042 1.639 1.989  
         Provision for Income Tax 0.042 0.103 0.178 0.244   0.054 0.113 0.198 0.297  
      NET INCOME/(LOSS) AFTER TAX 0.411 0.691 0.962 1.495 0.478 0.930 1.440 1.692
                         
   Return on Assets (%) 1.6 1.5 1.3 1.8   1.8 1.9 2.1 1.8  
   Return on Equity (%)  9.6 9.3 8.1 10.9   11.1 12.2 13.5 11.1  
Note: Details may not add up to totals due to rounding-off        
Source: Supervisory Data Center, Supervision and Examination Sector        
Updated as of 29 December 2005