UOB Annual Report 2002 - United Overseas Bank

Notes to the Financial Statements
for the financial year ended 31 December 2002
12 Provisions
Provisions charged/(credited) to the income statements during the financial year are as follows:
The Group
The Bank
2002 2001 2002 2001
$'000 $'000 $'000 $'000
Specific provisions for and net write-offs of
trade bills and advances to customers 421,753 165,411 308,408 113,295
General provisions, comprising provisions for
possible loan losses, contingencies and other
banking risks – (70,173) 16,126 (59,763)
Provisions/(write-back of provisions) for
diminution in value of:
Investments in subsidiaries – – 156,907 (13,035)
Other investments, fixed assets and other assets 20,929 62,757 29,786 31,178
Provision for life funds 8,800 6,800 – 40,000
451,482 164,795 511,227 111,675
13 Exceptional Items
The Group
The Bank
2002 2001 2002 2001
$'000 $'000 $'000 $'000
Gross dividend from Industrial & Commercial
Bank Limited (“ICB”) arising from
its merger with the Bank, net of dividend paid out
of pre-acquisition reserves which was credited to
the Bank’s cost of investment in ICB [Note 32(c)] – – 674,895 –
Deficit arising from the merger of ICB [Note 32(c)] – – (57,422) –
Surplus arising from the merger of OUB [Note 32(b)] – – 145,482 –
Restructuring costs as a result of the acquisition
of OUB (48,065) (11,997) (35,396) (11,045)
(48,065) (11,997) 727,559 (11,045)
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