PSE Circular for Brokers No. 712-98

April 20, 1998 PSE CIRCULAR FOR BROKERS NO. 712-98 April 17, 1998 Philippine Stock Exchange, Inc. Philippine Stock Exchange Center Exchange Road, Ortigas Center, Pasig City Attention: Ms . Maria Isabel T . Garcia Head Listing Department M a d a m : Please be informed of the misstatement in our audited financial statement as of December 31, 1997 submitted to your office as part of our bank's annual report under SEC Form 11-A. The misstatement is on Miscellaneous Expenses under Other Expenses of the Statement of Income which was erroneously indicated as P190,295,870 when the correct amount should be P195,673,671. We must reiterate however that the other 1997 Annual Report (booklet type) stated the correct amount. Attached is corrected page. We hope this satisfies your requirement. Very truly yours, (SGD.) PATERNO A. SATUR, AVP Controller PHILIPPINE SAVINGS BANK STATEMENTS OF INCOME Years Ended December 31 1997 1996 1995 INTEREST INCOME ON Receivables from customers P2,276,862,300 P1,666,233,268 P1,161,528,781 Interbank loans receivable 413,161,916 314,125,834 166,696,081 Investment securities 110,864,994 40,750,136 54,237,876 Deposits with banks 29,909,732 26,174,494 20,591,531 2,830,798,942 2,047,283,732 1,403,054,269 INTEREST EXPENSE ON Deposit liabilities 1,200,858,008 790,468,440 542,857,886 Bills payable 415,796,717 273,282,149 123,212,531 1,616,654,725 1,063,750,589 666,070,417 NET INTEREST INCOME 1,214,144,217 983,533,143 736,983,852 PROVISION FOR PROBABLE LOSSES 344,013,468 35,800,000 25,354,436 NET INTEREST INCOME AFTER PROVISION FOR PROBABLE LOSSES 870,130,749 947,733,143 711,629,416 OTHER INCOME Service charges and commissions 134,761,148 98,526,107 75,980,745 Gain (loss) on sale of acquired assets net (50,001,880) 45,372,010 28,910,183 Miscellaneous 98,503,373 56,560,337 29,672,249 183,262,641 200,458,454 134,563,177 OTHER EXPENSE Compensation and fringe benefits (Note 11) 307,545,774 245,832,115 204,641,805 Occupancy costs (Notes 3 and 6) 111,269,256 90,938,435 78,168,525 Security, messengerial and janitorial services 62,043,366 42,017,217 32,300,283 Taxes and licenses 12,227,395 5,495,088 15,896,712 Miscellaneous 195,673,671 131,560,330 131,179,180 688,759,462 515,843,185 462,186,505 INCOME BEFORE INCOME TAX 364,633,928 632,348,412 384,006,088 PROVISION FOR INCOME TAX (Note 7) 52,741,831 128,761,816 68,657,742 NET INCOME P311,892,097 P503,586,596 P315,348,346 ========== ========== ========== Earnings Per Share P1.91 P3.09 * P1.93 * ========== ========== ========== * After retroactive adjustment for stock dividends in 1997. See accompanying Notes to Financial Statements. .