36  CONSOLIDATED STATEMENT OF INCOME AND EXPENSES
           Rural and Cooperative Banking System        
         for the periods indicated        
         in billion pesos        
Selected Accounts RURAL BANKS
2003   2004  
1st 2nd 3rd 4th 1st 2nd 3rd 4th  
Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter  
  OPERATING INCOME 1.872 3.684 5.583 7.987   2.102 4.289 6.678 9.253  
       Net Interest Income 1.280 2.506 3.786 5.556   1.463 3.006 4.626 6.530  
   
            Interest Income 2.215 4.398 6.713 9.367   2.501 5.109 7.877 10.885  
            Less: Interest Expense 0.935 1.892 2.927 3.811   1.038 2.103 3.251 4.354  
     
       Non-Interest Income 0.592 1.178 1.798 2.430   0.639 1.283 2.051 2.723  
                       
            Fee-based Income 0.431 0.877 1.326 1.814   0.461 0.931 1.495 1.964  
            Trading Income/(Loss) 0.007 0.012 0.019 0.034   0.008 0.015 0.022 0.028  
            Trust Department Income 0.000 0.000 0.000 0.000   0.000 0.000 0.000 0.000  
            Other Income/(Loss) 0.154 0.289 0.453 0.583   0.170 0.337 0.535 0.730  
         
  OPERATING EXPENSES 1.517 3.100 4.788 6.774   1.729 3.574 5.552 7.890  
        Bad Debts Written Off 0.005 0.005 0.018 0.054   0.009 0.018 0.032 0.068  
        Provisions for Probable Losses 0.036 0.085 0.148 0.161   0.047 0.111 0.205 0.241  
       Other Operating Expenses 1.476 3.010 4.622 6.559   1.673 3.444 5.315 7.581  
          Overhead Costs 1.003 2.026 3.099 4.352   1.101 2.276 3.537 5.008  
          Other Expenses 0.473 0.984 1.523 2.207   0.572 1.169 1.778 2.573  
                         
      NET OPERATING INCOME/(LOSS) 0.355 0.584 0.796 1.212   0.373 0.715 1.126 1.363  
         Extraordinary Credits/(Charges)   EXTRAORDINARY CREDITS/(CHARGES) 0.061 0.134 0.237 0.397   0.124 0.248 0.395 0.484  
      NET INCOME/(LOSS) BEFORE TAX 0.416 0.718 1.033 1.610   0.498 0.964 1.521 1.847  
         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 0.374 0.615 0.854 1.366 0.444 0.851 1.323 1.550  
                         
   Return on Assets (%) 1.5 1.4 1.3 1.7   1.7 1.9 2.1 1.7  
   Return on Equity (%)  9.4 9.1 7.8 10.6   10.9 12.1 13.5 10.9  
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