PSE Circular for Brokers No. 2831-99

November 8, 1999 PSE CIRCULAR FOR BROKERS NO. 2831-99 November 5, 1999 MS. GRACE B. DE GUIA Assistant Manager Disclosure Department Philippine Stock Exchange Center Exchange Road, Ortigas Center Pasig City Dear Ms. De Guia: This is with reference to the news article published in the November 04, 1999 issue of Malaya regarding the reported Net Income after tax of the Philippine Banking Corporation. Please be advised that the disclosed income for the third quarter of 1999 amounting to P1.79 million and the reported total interest income of P269.17 million respectively is true and correct. However, we would like to point out that said information did not directly come from us. We understand that the news article was based on the Financial Statement submitted to Securities and Exchange Commission on October 29, 1999. For your information. llcd Thank you. Very truly yours, (SGD.) ATTY. NIMFA B. PASTRANA Asst . Vice President THE PHILIPPINE BANKING CORPORATION COMPARATIVE STATEMENT OF INCOME & EXPENSES For the Period July to September, 1998 and July to September, 1999 ACCOUNTS July to September, 1998 July to September, 1999 A. TOTAL OPERATING INCOME 310,357,373.68 499,970,497.59 a. Interest-Income 269,168,055.25 409,517,664.71 1. Interest-Interbank Loans Rec 21,070,769.18 540,809.34 2. Interest-Loans and Discounts 177,831,036.82 318,051,928.40 3. Interest-Investments 65,141,470.03 83,204,590.88 4. Interest-Deposit in Banks 5,124,779.22 7,720,336.09 5. Interest-Due from CBP 0.00 0.00 6. Interest-Trading Acct Securities 0.00 0.00 7. Interest-Others 0.00 0.00 b. Bank Commission 2,681,958.68 3,926,989.74 c. Service Charges/Fees 25,604,157.46 52,658,007.46 d. Fees/Commissions-Others 0.00 0.00 e. Trading Gains/(Loss) 0.00 0.00 f. Foreign Exchange Profit/(Loss) 3,543,729.72 5,975,650.64 1. Revaluation 0.00 0.00 2. Buying/Selling 0.00 0.00 g. Gold Trading Gains/(Loss) 0.00 0.00 h. Income-Trust Department 2,449,680.64 2,145,288.44 i. Other-Income 6,909,792.03 6,546,896.60 B. TOTAL OPERATING EXPENSES 318,073,291.93 464,913,424.15 a. Interest Expense 153,354,259.77 247,394,926.55 1. Interest-Deposit 151,656,654.19 241,410,245.52 2. Interest-Borrowed Funds 1,697,605.58 5,843,005.72 3. Interest-Bonds Payable (EKB only) 0.00 0.00 4. Interest-Others 0.00 141,675.31 b. Compensation/Fringe Benefits 62,267,646.33 62,216,739.38 c. Bad Debts Expenses 0.00 0.00 d. Other Expenses 102,451,385.83 153,301,758.22 e. Provisions 0.00 0.00 C. NET OPERATING INCOME/(LOSS) -7,715,918.25 16,057,073.44 D. EXTRAORDINARY CREDITS/(CHARGES) 14,975,269.87 18,663,340.41 a. Recovery on Charged-off Assets 200,000.00 170,000.00 b. Income/(Loss) from Assets Acquired 41,096.33 1,377,600.00 c. Profits/(Loss) from Assets Sold/Exchanged 6,002,615.94 7,101,312.66 d. Dividends-Equity Investment 0.00 0.00 e. Profit/(Loss) on FX Swap Contract Diff 0.00 0.00 f. Others (Rental Income) 8,731,557.60 10,014,427.75 E. NET INCOME/(LOSS) BEFORE INCOME TAX 7,259,351.62 34,720,413.85 F. PROVISION FOR INCOME TAX 5,470,320.44 6,038,696.71 G. NET INCOME/(LOSS) AFTER INCOME TAX 1,789,031.18 28,681,717.14 =========== ============ H. RETAINED EARNINGS 1,789,031.18 28,681,717.14 ============ =========== I. EARNINGS PER SHARE 0.0623 0.9985 ============ =========== AGAPITO S. CAPUNO Vice President