UOB Annual Report 2002 - United Overseas Bank

Notes to the Financial Statements
for the financial year ended 31 December 2002
18 Non-Distributable Reserves (continued)
(b) The Bank
2002 2001
Foreign
Foreign
Currency
Currency
Statutory Capital Translation Statutory Capital Translation
Reserve Reserve Reserve Total Reserve Reserve Reserve Total
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Balance at 1 January 1,654,100 4,431,679 (9,545) 6,076,234 1,467,100 – (6,916) 1,460,184
Currency translation
differences – – (15,601) (15,601) – – (2,629) (2,629)
Transfer from/(to) revenue
reserves (Note 19) 741,193 (1,000,109) – (258,916) 187,000 – – 187,000
Premium arising from
shares issued as part
consideration for the
acquisition of OUB – – – – – 4,431,679 – 4,431,679
Balance at 31 December 2,395,293 3,431,570 (25,146) 5,801,717 1,654,100 4,431,679 (9,545) 6,076,234
(c)
The statutory reserves of the Group and the Bank are maintained in accordance with the provisions of applicable laws and
regulations. These reserves are non-distributable unless approved by the relevant authorities.
The capital reserve of the Bank represents the premium arising from the issue of shares in connection with the acquisition of OUB
which was not transferred to the share premium account due to the relief provided for under Section 69B of the Singapore
Companies Act. The balance at 31 December 2002 is net of the amount transferred to revenue reserves, following the receipt of
dividends paid out of OUB Group’s pre-acquisition profits.
The capital reserves of the Group comprise the capital reserve of the Bank and $57,796,000 relating to bonus shares which were
issued by a subsidiary as fully paid shares through capitalisation of the subsidiary’s revenue reserves.
The foreign currency translation reserves of the Group and the Bank relate to currency translation differences arising from the use
of year-end exchange rates versus historical rates in translating the net assets of overseas branches, subsidiaries and associates.
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