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32.1 The amounts outstanding at December 31 comprise the following:
In S millions 2003
2002
Acceptances on account of customers 53
24 Guarantees on account of customers
3,394 4,008
Endorsements and other obligations on account of customers
Letters of credit Others
1,632 326
1,136 292
Other contingent items 89
91 Total
5,494 5,551
Industry Breakdown
Manufacturing 974
1,109 Building and Construction
270
332 General Commerce
1,438 963
Transportation, Storage and Communications
336
380 Financial Institutions, Investment and Holding
Companies
669
966 Professionals and Private Individuals except Housing
Loans
747
779 Others
1,060 1,022
Total
5,494 5,551
32.2 DBS Bank has an existing outsourcing agreement with IBM with respect to the provision of information technology and related support to DBS Bank’s operations in
Singapore and Hong Kong. As with all similar market standard arrangements, there are various termination clauses contained within the agreement that under certain circumstances
could require DBS Bank to pay a penalty on early termination of the contract. The exact amount of any penalty amount cannot be reliably determined, as it is dependent upon business
volumes over the period of the contract and on the timing of the termination itself.
32.3 Included in “Other contingent items” at December 31, 2003, is an amount of S89 million 2002: S91 million, representing the termination fee payable by DBS Bank should it
terminate its Life Insurance Bancassurance Distribution Agreement with Aviva Ltd prematurely before the expiry date.
32.4 Included in Guarantees on account of customers at December 31, 2003, was a guarantee of S590 million 2002: S631 million which was given by DBS Bank to holders
of DBS UP Guaranteed Fund 3.51, DBS UP Guaranteed Fund 5.01, DBS UP Guaranteed Fund 5.02, DBS UP Guaranteed Fund 5.03, DBS UP Guaranteed Fund 7.02, and DBS UP
Guaranteed Fund 7.03. The guaranteed value is payable on June 23, 2004, December 23, 2005, April 30, 2006, June 30, 2006, April 30, 2008 and June 30, 2008 respectively.
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33 COMMITMENTS
33.1 Undrawn Commitments