Derivatives Contingent liabilities and commitments

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