UOB Annual Report 2002 - United Overseas Bank

Cost Savings from Integration
The Group realised cost savings of approximately $195 million in 2002.
With integration swiftly completed, the Group is on track to achieve
an annual pre-tax cost savings of approximately $250 million.
300
250
200
Cost Savings
195
250
Other Operating Expenses
Other operating expenses were up by $107 million to $538 million in
2002, mainly driven by higher depreciation expenses on land and
buildings and other fixed assets, higher rental and maintenance costs,
higher advertising and promotional expenses, as well as higher commission
and brokerage expenses.
$ million
150
100
50
0
70
Realised Realised Target
1st Half 2002 Full Year 2002 2003
IT operating expenses for 2002 increased by $46 million from 2001 to
reach $199 million, and accounted for 18.6% of total Group expenses.
120
90
Group IT Operating Expenses
199
153 102 97
93
$ million
60
116
63
53
60
30
0
2000 2001 2002
2nd Half
• 1st Half •
21
18
15
Group IT Operating Expenses/
Total Expenses
15.5
17.5
18.6
%
12
9
6
2000 2001 2002
UNITED OVERSEAS BANK 69