UOB Annual Report 2002 - United Overseas Bank

Notes to the Financial Statements
for the financial year ended 31 December 2002
36 Consolidation of Special Purpose Entity (continued)
The effects of the consolidation on the Group’s balance sheet as at 31 December 2002 and the income statement for the
financial year then ended are as follows:
The Group
Increase/(Decrease)
$’000
Balance Sheet
Assets
Placements and balances with banks and agents 70,277
Investment securities 816,383
Other assets 13,178
899,838
Liabilities
Debts issued 852,411
Other liabilities 44,427
896,838
Off-Balance Sheet Items
Derivative financial instruments (contract or underlying principal amount) (1,154,568)
Income Statement
Profit after tax for the year 3,000
37 Dividends
The directors have proposed a final dividend in respect of the financial year ended 31 December 2002 of 25 cents per share net
of tax at 22%, amounting to a total of $306,463,000. These financial statements do not reflect this proposed dividend, which
will be accounted for in shareholders’ equity as an appropriation of retained profits in the year ending 31 December 2003. The
proposed final dividend in respect of the financial year ended 31 December 2001 was 25 cents per share net of tax at 22%,
amounting to a total of $306,366,000 based on the number of shares in issue on 31 December 2001.
38 Contingent Liabilities
The Group
The Bank
2002 2001 2002 2001
$'000 $'000 $'000 $'000
Direct credit substitutes 3,244,290 2,953,396 3,340,645 1,882,535
Transaction-related contingencies 3,632,120 2,700,046 2,911,975 979,080
Trade-related contingencies 1,806,060 2,019,823 1,378,571 639,083
Other contingent liabilities 236,501 114,918 171,064 34,562
8,918,971 7,788,183 7,802,255 3,535,260
In the normal course of business, the Group and the Bank conduct businesses involving acceptances, guarantees, performance
bonds and indemnities. The majority of these facilities are reimbursable by corresponding obligations of customers. These contingent
liabilities are unsecured.
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