Notes to Financial Statements - BDO

Income StatementsFor the Years Ended December 31, 2008, 2007 and 2006(Amounts In Millions of Philippine Pesos Except Per Share Data)GROUPParent BANKNotes 2008 2007 2006 (Note 26) 2008 2007 (Note 26) 2006 (Note 26)INTEREST INCOME 20 P 42,359 P 37,603 P 24,209 P 39,733 P 35,235 P 22,342INTEREST EXPENSE 21 19,323 16,167 13,134 18,043 14,978 12,129NET INTEREST INCOME 23,036 21,437 11,075 21,690 20,257 10,213IMPAIRMENT LOSSES - Net 14 5,232 4,118 2,013 5,171 3,802 1,991NET INTEREST INCOMEAFTER IMPAIRMENT LOSSES 17,804 17,319 9,062 16,519 16,455 8,222OTHER OPERATING INCOME 22 13,731 16,858 8,278 11,810 16,758 6,821OTHER OPERATING EXPENSES 22 27,852 24,760 12,080 25,892 22,908 10,765INCOME BEFORE TAX 3,683 9,417 5,260 2,437 10,305 4,278TAX EXPENSE 27 1,445 2,847 1,270 958 2,634 1,034NET INCOME P 2,238 P 6,570 P 3,990 P 1,479 P 7,671 P 3,244Attributable To:Shareholders of the Parent Bank P 2,182 P 6,518 P 3,970Minority Interest 56 52 20P 2,238 P 6,570 P 3,990Earnings Per Share: 28Basic P 0.91 P 2.86 P 3.08 P 0.61 P 3.36 P 2.52Diluted P 0.90 P 2.85 P 3.03 P 0.61 P 3.36 P 2.48See Notes to Financial Statements.Thinking Ahead To Get You Ahead • Annual Report 2008 5