UOB Annual Report 2002 - United Overseas Bank

Notes to the Financial Statements
for the financial year ended 31 December 2002
28 Trade Bills and Advances to Customers (continued)
(e) The movements in provisions are as follows:
2002 2001
Specific Interest-in- General Specific Interest-in- General
Provisions Suspense Provisions Total Provisions Suspense Provisions Total
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
The Group
Balance at 1 January 1,613,974 640,219 1,434,502 3,688,695 770,534 273,156 768,490 1,812,180
Currency translation
differences (39,807) (13,871) (9,489) (63,167) 37,362 16,532 7,530 61,424
Write-off against
provisions (256,675) (123,041) – (379,716) (383,665) (121,665) – (505,330)
Charge/(write-back)
to income statements 426,196 – – 426,196 149,377 – (70,173) 79,204
Interest suspended – 169,223 – 169,223 – 115,428 – 115,428
Transfer to provision for
diminution in value of
investments and
other assets (7,105) (2,030) – (9,135) (647) – – (647)
Acquisition of
subsidiaries – – – – 1,041,013 356,768 728,655 2,126,436
Balance at 31 December 1,736,583 670,500 1,425,013 3,832,096 1,613,974 640,219 1,434,502 3,688,695
The Bank
Balance at 1 January 342,551 158,427 538,133 1,039,111 363,442 149,887 597,881 1,111,210
Currency translation
differences (16,704) (7,988) (912) (25,604) 7,953 2,984 15 10,952
Write-off against
provisions (222,841) (102,680) – (325,521) (130,946) (26,642) – (157,588)
Charge/(write-back)
to income statements 312,804 – 16,126 328,930 102,102 – (59,763) 42,339
Interest suspended – 101,962 – 101,962 – 32,198 – 32,198
Transfer from subsidiaries
upon merger 910,869 357,848 677,958 1,946,675 – – – –
Balance at 31 December 1,326,679 507,569 1,231,305 3,065,553 342,551 158,427 538,133 1,039,111
General provisions comprise provisions for possible loan losses, contingencies and other banking risks.
The above interest-in-suspense includes amounts relating to interest receivable as shown in Note 29.
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