UOB Annual Report 2002 - United Overseas Bank
UOB Annual Report 2002 - United Overseas Bank
UOB Annual Report 2002 - United Overseas Bank
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Capital Adequacy Ratios<br />
The Capital Adequacy Ratios (CAR) of the Group were computed in accordance with the guidelines<br />
issued by the Basle Committee on <strong>Bank</strong>ing Supervision. The Group's capital management policy<br />
is to maintain a strong capital position to support the growth of the Group, both organically and<br />
through acquisitions. As at 31 December <strong>2002</strong>, the Group maintained a strong total capital ratio<br />
of 15.3%, which is almost twice the minimum of 8% set by the <strong>Bank</strong> for International Settlements<br />
(BIS), and above the minimum of 12% required by the Monetary Authority of Singapore.<br />
The total capital ratio fell from 18.5% to 15.3%, mainly as a result of the redemption of US$<br />
subordinated floating rate notes during the year.<br />
<strong>2002</strong> 2001<br />
$ million $ million<br />
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––<br />
Capital<br />
Tier 1 – Core capital<br />
Share capital 1,572) 1,571)<br />
Disclosed reserves 10,956) 10,765)<br />
Minority interests 150) 399)<br />
Less: Goodwill (3,684) (3,777)<br />
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––<br />
8,994) 8,958)<br />
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––<br />
Tier 2 – Supplementary capital<br />
Revaluation reserves on investments and properties* 349 671)<br />
General loan loss provision + 920 949)<br />
Subordinated notes 1,294 3,638)<br />
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––<br />
2,563 5,258)<br />
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––<br />
Less: Deductions against Capital # (337) (161)<br />
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––<br />
Total capital 11,220 14,055)<br />
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––<br />
Risk-Weighted Assets<br />
Total risk-weighted assets including market risk 73,574 75,897)<br />
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––<br />
Capital Adequacy Ratios<br />
Tier 1 12.2% 11.8%)<br />
Total capital 15.3% 18.5%)<br />
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––<br />
* After discount of 55% in accordance with BIS guidelines.<br />
+ Excluding specific and earmarked provisions.<br />
# Including capital deductions for certain investments.<br />
UNITED OVERSEAS BANK 75
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