18
10.1
Operating expenses include the following:
In S’million 2002
2001
1 Directors’ fees and remuneration
7 16
Remuneration of DBS Banks directors Note 10.2
7 16
Fees of DBS Banks directors Note 10.2 2
Auditors’ remuneration 3
3 Audit fees
- PwC
a
Singapore 2
1 - Other auditors including
associated firms of PwC Singapore Fee for non-audit services
b
- PwC Singapore 1
- Other auditors including associated firms of PwC Singapore
3 Depreciation of fixed assets Note 31.1
94 100
Premises and other properties 39
30 Computer and office equipment, furniture and
fittings and other fixed assets 55
70
4 Maintenance and hire of fixed assets including
buildings 101
91 5
Rental of premises 56
57
Amount under S500,000
a PricewaterhouseCoopers.
b Fees are mainly for services provided for specific projects closely related to audit activities such as due diligence on merger
and acquisition projects.
10.2 The number of directors of DBS Bank, including those appointed and resignedretired
during the year, in each of the remuneration bands is as follows:
2002 2001
S500,000 and above 3
3 S250,000 to S499,999
- -
Below S250,000 11
9 Total
14 12
19
11 PROVISION FOR POSSIBLE LOAN LOSSES AND DIMINUTION IN VALUE OF
OTHER ASSETS
The charge to the profit and loss account is analysed as follows:
In S’million 2002
2001
Specific provision for loans Note 25 224
167 Specific provision for diminution in value of investments and other
assets Note 26 355
129 Release of general provision for loans Note 25
56 79
ProvisionRelease of general provision for diminution in value of investments and other assets Note 26
23 1
Provision for fixed assets and others Note 26 39
35 - Fixed assets
- Others 2
37 11
24 Total
585 251
12 TAXATION
In S’million 2002
2001
Taxation charge in respect of profit for the financial year: Current taxation
- current year 294
282 - prior years’ underover provision
- -
Deferred taxation Note 21 - origination and reversal of temporary differences
27 1
- reduction in tax rate 2
1 - effect of adopting SAS 12
- 12
- prior years’ underover provision -
- Total
265 270
The taxation charge on the profit for the year is lower than that derived by applying the statutory income tax rate of 24.5. This is principally because profit arising from the DBS Bank Asian
Currency Unit offshore transactions is subject to tax at a concessionary rate of 10, as well as non-taxable gains on disposal and folding in of subsidiary companies included in the profits.
20
12.1 The deferred creditcharge in the profit and loss account comprises the following temporary differences:
In S’million 2002
2001
Accelerated tax depreciation 12
6 Provision for loan losses
36 12
Other temporary differences 19
6 Deferred taxation charged to profit and loss account
29 12
12.2 The tax on DBS Bank’s profit before taxation differs from the theoretical amount that would arise using the Singapore basic tax rate as follows:
In S’million 2002
2001
Operating profit 1,156
1,627 Prima facie tax calculated at a tax rate of 22 2001: 24.5
254 399
Effect of different tax rates in other countries 5
20 Effect of change in tax rate
2 1
Income not subject to tax 37
120 Income taxed at concessionary rate
85 62
Non-tax deductible provisions 116
33 Others
24 1
Taxation charged to profit and loss account 265
270
Further information on deferred income tax is presented in Note 21.
21
13 SHARE OPTIONS AND SHARE PLANS
13.1 DBSH SHARE OWNERSHIP SCHEME
