Processing raw image data in a camera includes computing a luminance image from the raw image data, and computing a chrominance image corresponding to at least one of the sensor's image colors from the raw image data. The luminance image and chrominance image(s) can represent the same range of colors able to be represented in the raw image data. The chrominance image can have a lower resolution than that of the luminance image. A camera for performing the method is also disclosed.