Group Income
Before Operating Expenses, Operating Expenses & Ratio of Operating
Expenses to Income Before Operating Expenses
Income Before Operating Expenses
1998: S$1,906.1 million (+26.0%)
1997: S$1,512.3 million Operating Expenses
1998: S$754.4 million (+53.1%)
1997: S$492.9 million Ratio of
Operating
Expenses to Income
Before Operating
Expenses
1998: 39.6%
(+7.0 percentage points)
1997: 32.6%
The increase in
operating expenses was due to the consolidation of POSBank's expenses
from 1 July 1998 and TDB's expenses from 1 April 1998 and a S$73.9
million provision for restructuring costs. Excluding these, the increase in operating expenses would have been
1.3%. The expense-to-income ratio excluding restructuring costs would
have been 35.7%.
Group Provisions & Provisions as Percentage of Operating Profit
Provisions
1998: S$996.4 million (+101.1%) 1997: S$495.5 million
Of the total provisions made by the Group in 1998,
S$272.0 million of specific provisions were taken against TDB's loans,
S$322.5 million for loans to the Regional Countries (excluding TDB) and
S$339.8 million for loans to Singapore borrowers and other countries.
The Group continued to set
aside additional special general provisions in 1998 amounting to
S$157.8 million to meet contingencies which may arise in the future from
its regional exposure.
All classified loans have been fully provided for.
Provisions as % of
Operating Profit
1998: 86.5% (+37.9 percentage points)
1997: 48.6%
Group Total Shareholders' Funds & Return on
Average Total Shareholders' Funds (ROE)
Total Shareholders' Funds
1998: S$9.1 billion (+26.8%) 1997: S$7.2 billion
Total shareholders' funds were further strengthened by proceeds from the
Bank's 1 for 5 rights issue in May 1998, and the issuance of non-voting
convertible preference shares as consideration for the acquisition of
the business of POSBank in November 1998.
Return on Average Total Shareholders' Funds 1998: 2.68% (-3.51 percentage points) 1997: 6.19%
Income Before Operating Expenses
Operating Expenses
Ratio of
Operating
