Financial statements 165
41.2 Derivatives
The table below shows the contractual undiscounted cash flows for derivatives settled on net and gross settlement basis.
Less than 1 week to
1 to 3 3 to 12
More than In millions
a
7 days 1 month
months months
1 year Total
2015 Derivatives settled on a net basis
398 3 41 153 457 256
Derivatives settled on a gross basis – inflow
48,301 93,374 141,698 263,871 136,811 684,055
– outflow 48,045 93,041 141,707 263,906 136,252 682,951
2014
Derivatives settled on a net basis 490
18 20
149 451
148 Derivatives settled on a gross basis
– inflow
51,768 92,889 165,736 307,503 155,025 772,921 –
outflow 51,476 92,575 165,570 307,689 155,044 772,354
a Positive indicates inflow and negative indicates outflow of funds
41.3 Contingent liabilities and commitments
The table below analyses assets and liabilities of the Group as at 31 December based on the remaining period as at balance sheet date to the contractual expiry date.
Less than 1 to 3
3 to 5 Over
In millions 1 year
years years
5 years Total
2015 Guarantees, endorsements and other contingent liabilities
19,901 - - - 19,901
Undrawn credit commitments
a
and other facilities 197,676 8,985
10,389 2,732 219,782
Operating lease commitments 226 342 84
9 661
Capital commitments 33 8 7 -
48
Total 217,836 9,335
10,480 2,741 240,392
2014
Guarantees, endorsements and other contingent liabilities 22,231
– –
– 22,231
Undrawn credit commitments
a
and other facilities 166,719
8,345 9,637
2,775 187,476
Operating lease
commitments 207 308 158 56 729
Capital commitments
22 – – – 22
Total 189,179 8,653 9,795 2,831
210,458
a Includes commitments that are unconditionally cancellable at any time by the Group
The Group expects that not all of the contingent liabilities and undrawn credit commitments will be drawn before expiry.
DBS Annual Report 2015 166
42 Capital Management
The capital management and planning process is overseen by the Capital Committee which is chaired by the Chief Financial Officer.
Regular updates on the Group’s current and projected capital positions are provided to the Board of Directors, which holds ultimate
responsibility for the Group’s capital management objective and capital structure.
The Group’s capital management objective is to maintain a strong capital position consistent with regulatory requirements under
the MAS’ Notice to Banks No. 637 “Notice on Risk Based Capital Adequacy Requirements for Banks Incorporated in Singapore”
MAS Notice 637 and the expectations of various stakeholders, e.g. customers, investors and rating agencies. This objective is
pursued while delivering returns to shareholders and ensuring that adequate capital resources are available for business growth and
investment opportunities as well as adverse situations, taking into consideration our strategic plans and risk appetite.
The Group is subject to the capital adequacy requirements set out in the MAS Notice 637, which effects the Basel Committee on
Banking Supervision’s capital adequacy framework in Singapore. The Group has complied with all externally imposed capital requirements
whether prescribed by regulation or by contract throughout the financial year unaudited.
43 Segment Reporting
43.1 Business segment reporting