Plantersbank

March 2, 1998 PSE CIRCULAR FOR BROKERS NO. 259-98 PLANTERSBANK REPORT ON OPERATIONS Plantersbank ended 1997 with total resources of P15.4 billion, 16% or P2.1 billion more than previous year's base of P13.3 billion. The growth in resources came primarily from the expansion of loan portfolio in the first half of the year, ending at P10.6 billion, a net increase of P1.25 billion. Total deposits stood at P7.9 billion, a P1.4 billion increase over the last twelve months, and accounted for 61% of the bank's total funding sources. Program funds reached P4.3 billion as we pushed to maximize the use of all available program lines. To date, these long-term funds provide one third of our total funds. Capital accounts reached P1.9 billion, P521 million more than last year primarily because of the P332 million additional appraisal increment recognized in March 1997. In November 1997, we redeemed about P95 million worth of convertible preferred stock while the balance was converted into 243,665 common shares of stock. After-tax net income for 1997 was P270 million, P10 million more than last year's profits. Return on equity was over 19% and higher than those reported by some commercial banks. Return on assets registered slightly lower than the industry benchmark of 2.0%. Gross revenues for the year reached P2.3 billion, 27% or P497 million more than a year ago as interest rates soared right after the July devaluation. Sizable collections on some non-performing assets also contributed to the additional earnings booked during the year. cdlex Interest expenses rose significantly by 36% to P1.4 billion. The build-up of deposits and the rise in interest rates resulted in additional funding costs of P357 million, 64% higher than last year. Operating expenses amounted to P505 million, 21% more than last year. The increase in operating costs was due to the expansion of the bank's marketing capabilities and the additional provision for loan losses. LexLib