22   CONSOLIDATED STATEMENT OF INCOME AND EXPENSES AND KEY RATIOS      
              Universal Banking System1/
              for the periods indicated
              in billion pesos
Selected Accounts UNIVERSAL BANKS
Mar-08 Jun-08 r/ Sep-08 r/ Dec-08
Income and Expense Accounts
Interest Income 49.737 100.772 156.512 217.275
Interest Expense 23.865 45.386 67.609 94.519
Provision for Losses on Accrued Interest Income from Financial Assets 0.000 0.000 0.000 0.181
Net Interest Income 25.872 55.386 88.902 122.575
Non-Interest Income 19.259 32.609 44.165 60.646
  Dividend Income 0.070 0.197 0.343 0.430
Fees and Commissions Income 7.403 14.653 22.920 31.336
Payment Services 0.403 0.863 1.370 1.849
Intermediation Services 3.180 6.561 10.045 13.671
Custodianship 0.094 0.110 0.192 0.243
Underwriting and Securities Dealership 0.024 0.133 0.334 0.513
Securitization Activities 0.000 0.000 0.000 0.000
Income from Fiduciary Activities 1.154 2.090 3.585 5.249
Others 2.548 4.896 7.394 9.812
Gains/(Losses) on Financial Assets and Liabilities Held for Trading (0.402) (2.153) (7.633) 20.056
Gains/(Losses) on Financial Assets and Liabilities Designated at Fair Value through Profit or Loss 0.019 0.235 (0.498) (1.015)
Foreign Exchange Profit/(Loss) 4.004 6.357 13.499 (11.354)
Gains/(Losses) from Sale/Redemption/Derecognition of Non-Trading Financial Assets and Liabilities 3.923 5.016 3.184 3.584
Gains/(Losses) on Fair Value Adjustment in Hedge Accounting 0.000 0.000 (0.108) (0.112)
Gains/(Losses) from Sale/Derecognition of Non-Financial Assets  2.216 3.940 5.239 7.623
  Bank Premises, Furniture, Fixture and Equipment 0.118 0.178 0.088 0.149
  ROPA 2.087 3.758 5.144 7.465
  Goodwill 0.000 0.000 0.000 0.000
  Other Intangibles 0.011 0.003 0.007 0.009
  Other Income 2.026 4.366 7.219 10.098
  Non-Interest Expense 32.303 64.758 100.970 134.914
  Compensation/Fringe Benefits 10.174 21.993 33.321 47.009
  Taxes and Licenses 3.288 6.230 9.583 12.714
  Fees and Commissions Expenses 0.611 1.102 1.839 2.467
Other Administrative Expenses 12.368 25.496 39.603 57.196
  Depreciation/Amortization 2.848 5.370 7.999 11.124
Impairment Losses 0.002 0.158 0.390 0.733
Investment in Subsidiaries, Associates and Joint Ventures 0.000 0.000 0.000 0.000
Bank Premises, Furniture, Fixture and Equipment 0.000 0.000 0.000 0.001
ROPA 0.001 0.155 0.385 0.701
Goodwill 0.000 0.000 0.000 0.000
Other Intangible Assets 0.000 0.000 0.000 0.000
Other Assets 0.001 0.003 0.005 0.031
Provisions 3.013 4.409 8.235 3.671
Losses/Recoveries on Financial Assets (0.851) (2.879) (4.784) (12.868)
Provision for Credit Losses on Loans and Receivables and Other Financial Assets (1.111) (3.386) (6.214) (14.518)
Bad Debts Written Off 0.002 0.002 0.000 (0.017)
Recovery on Charged-Off Assets 0.257 0.505 1.429 1.666
Net Profit Before Share in the Profit/(Loss) of Unconsolidated Subsidiaries, Associates and Joint Ventures Accounted for Using the Equity Method 11.976 20.358 27.313 35.438
Share in the Profit/(Loss) of Unconsolidated Subsidiaries, Associates and Joint Ventures Accounted for Using the Equity Method 1.577 3.699 5.929 7.307
Share in the Profit/(Loss) of Unconsolidated Subsidiaries 1.194 3.062 4.907 6.033
Share in the Profit/(Loss) of Associates 0.383 0.637 1.021 1.273
Share in the Profit/(Loss) of Joint Ventures 0.000 0.000 0.000 0.001
Total Profit/Loss Before Tax and Before Minority Interest 13.553 24.057 33.242 42.745
Income Tax Expense 1.824 4.678 6.647 10.204
Total Profit/Loss After Tax and Before Minority Interest  11.729 19.379 26.595 32.541
Minority Interest in Profit/(Loss) of Subsidiaries (for consolidated report only) 0.000 0.000 0.000 0.000
Net Profit or Loss 11.729 19.379 26.595 32.541
Key  Ratios
Earning Asset Yield 2/                            7.34                                7.09                           7.28                           7.04
Funding Cost 3/                            3.02                                2.89                           2.97                           2.84
Interest Spread 4/                            4.32                                4.20                           4.31                           4.20
Net Interest Margin 5/                            4.02                                3.93                           4.04                           3.97
Net Interest Income to Total Operating Income                           57.50                              59.72                         61.65                         66.90
Cost to Income Ratio 6/                          65.99                              69.07                         72.54                         73.23
Return on Assets                             1.31                                1.17                           1.08                           0.81
Return on Equity                           11.81                              11.54                         10.27                           7.89
1/ Inclusive of branches of foreign banks and government banks with universal banking license
2/ Ratio of Annualized Interest Income to Average Earning Assets (Total Loan Portfolio, Net of Amortization + AFS Debt Securities, Net of Amortization + HTM Financial Assets, Net of Amortization + Unquoted Debt Securities Classified as Loans, Net of Amortization + Financial Assets Held for Trading - Held for Trading Equity Securities + Financial Assets Designated at Fair Value Through Profit of Loss-Debt Securities + Due From other Banks
3/ Ratio of annualized Interest Expense to Interest Bearing Liabilities ( Deposit Liabilities + Bills Payable + Unsecured Subordinated Debt + Bonds Payable, Net + Redeemable Preferred Shares
4/ Earning assets Yield - Funding Cost
5/ Ratio of Annualized Net Interest Income (Interest Income - Interest Expense) to Average Earning Assets
6/ Ratio of Annualized Non-Interest Expense, Net of Impairment Losses to Annualized Total Operating Income (Net Interest Income + Non-Interest Income)
Note: Details may not add up to totals due to rounding-off
Source : Supervisory Data Center, Supervision and Examination Sector
Updated as of 04 March 2009