36  CONSOLIDATED STATEMENT OF INCOME AND EXPENSES
           Rural and Cooperative Banking System        
         for the periods indicated        
         in billion pesos        
Selected Accounts COOPERATIVE BANKS
2003   2004  
1st 2nd 3rd 4th 1st 2nd 3rd 4th  
Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter  
  OPERATING INCOME 0.155 0.318 0.479 0.635   0.158 0.338 0.521 0.719  
       Net Interest Income 0.082 0.167 0.249 0.336   0.080 0.172 0.264 0.369  
   
            Interest Income 0.170 0.345 0.524 0.692   0.175 0.367 0.563 0.775  
            Less: Interest Expense 0.088 0.178 0.275 0.355   0.095 0.195 0.299 0.406  
     
       Non-Interest Income 0.073 0.151 0.230 0.298   0.079 0.166 0.257 0.350  
                       
            Fee-based Income 0.057 0.118 0.181 0.231   0.058 0.124 0.192 0.257  
            Trading Income/(Loss) 0.000 0.001 0.001 0.001   0.000 0.000 0.001 0.003  
            Trust Department Income 0.000 0.000 0.000 0.000   0.000 0.000 0.000 0.000  
            Other Income/(Loss) 0.016 0.032 0.048 0.065   0.021 0.042 0.064 0.090  
  OPERATING EXPENSES 0.122 0.250 0.382 0.521   0.128 0.267 0.414 0.593  
        Bad Debts Written Off 0.001 0.000 0.001 0.001   0.000 0.001 0.001 0.002  
        Provisions for Probable Losses 0.002 0.007 0.010 0.016   0.005 0.012 0.019 0.029  
       Other Operating Expenses 0.119 0.243 0.371 0.504   0.123 0.254 0.395 0.562  
          Overhead Costs 0.084 0.172 0.261 0.350   0.087 0.179 0.277 0.386  
          Other Expenses 0.035 0.071 0.109 0.155   0.036 0.075 0.118 0.175  
                         
      NET OPERATING INCOME/(LOSS) 0.033 0.068 0.097 0.114   0.031 0.071 0.106 0.125  
         Extraordinary Credits/(Charges)   EXTRAORDINARY CREDITS/(CHARGES) 0.004 0.008 0.011 0.016   0.004 0.008 0.011 0.017  
      NET INCOME/(LOSS) BEFORE TAX 0.037 0.076 0.108 0.130   0.034 0.079 0.118 0.142  
         Provision for Income Tax 0.000 0.000 0.000 0.001   0.000 0.000 0.000 0.000  
      NET INCOME/(LOSS) AFTER TAX 0.037 0.076 0.108 0.129 0.034 0.079 0.118 0.142
                         
   Return on Assets (%) 2.1 2.0 2.1 2.4   2.2 2.3 2.3 2.4  
   Return on Equity (%)  12.8 12.1 12.4 14.4   13.6 13.7 13.7 13.9  
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