UOB Annual Report 2002 - United Overseas Bank

Notes to the Financial Statements
for the financial year ended 31 December 2002
43 Non-Current Assets and Liabilities
To comply with the disclosure requirements of the Ninth Schedule of the Singapore Companies Act, set out below are the noncurrent
assets and non-current liabilities of the Group and the Bank. Assets and liabilities other than those disclosed below are
current.
The Group
The Bank
2002 2001 2002 2001
$'000 $'000 $'000 $'000
Non-Current Assets
Singapore Government treasury bills and securities 568,803 552,957 568,803 552,957
Trade bills and advances to customers (gross) 32,944,833 36,487,701 28,674,127 13,296,229
Placements and balances with banks and agents 229,129 157,229 229,129 80,354
Investment securities 3,945,383 3,431,062 2,687,019 989,656
Investments in associates 1,274,245 1,781,322 706,868 737,601
Investments in subsidiaries – – 1,409,829 10,260,598
Fixed assets 1,794,349 1,724,515 1,118,922 610,132
Deferred tax assets 39,519 29,218 2,790 14,033
Goodwill 3,666,046 3,776,651 3,585,428 –
44,462,307 47,940,655 38,982,915 26,541,560
Non-Current Liabilities
Deposits of and amounts owing to
non-bank customers, banks and agents,
and subsidiaries 897,142 537,294 756,159 201,932
Deferred tax liabilities 26,900 23,539 6,422 874
Debts issued 1,294,399 3,639,095 1,294,399 3,639,095
2,218,441 4,199,928 2,056,980 3,841,901
44 Financial Risk Management
The Group’s activities are principally related to transacting in and the use of financial instruments, including derivatives. Transactions
in, and the use of, financial instruments expose the Group to a variety of financial risks, mainly credit risk, foreign exchange risk,
interest rate risk and liquidity risk.
Managing financial risks is an integral part of the Group’s business and it is carried out centrally by the various specialist
committees of the UOB Group under policies approved by the directors of the Bank. These policies not only include the parameters
for the risks that the Group may undertake for the various financial instruments, but also directions on the types of business that
the Group may engage in, guidelines for accepting customers for all types of financial instruments and the terms under which
customer business is conducted.
The various specialist committees of the UOB Group have established processes to identify, measure, monitor and ultimately,
mitigate these financial risks. Additionally, the Board of Directors of the Bank and the UOB Group’s Risk Management & Compliance
Sector provide an independent oversight to ensure that those risk management policies are complied with through a variety of
established controls and reporting processes.
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