18
12.2 The tax on DBS Bank’s operating profit differs from the theoretical amount that would arise using the Singapore basic tax rate as follows:
In millions 2004
2003 Operating profit
2,269 997
Prima facie tax calculated at a tax rate of 20 2003 : 22 453
219 Effect of different tax rates in other countries
10 8
Effect of change in tax rate 9
- Income not subject to tax
115 2
Income taxed at concessionary rate 28
72 Non-tax deductible provisions
2 78
Others 25
40 Taxation charged to profit and loss account
332 255
Further information on deferred taxation is presented in Note 17.
13 SHARE OPTIONS AND SHARE PLANS
13.1 DBSH SHARE OWNERSHIP SCHEME
The DBSH Share Ownership Scheme is a fund set up to hold units of DBSH ordinary shares and is administered by DBS Trustee Ltd, a wholly-owned subsidiary company of DBS Bank. All
confirmed employees with at least one year of service and who are not participating in the DBSH Share Option Plan are eligible to contribute up to 10 of their monthly base pay to buy
units of DBSH ordinary shares. DBSH Group will top up 50 of the employee’s contribution as additional incentive to the employee.
Details of the DBSH ordinary shares held by DBS Trustee Ltd pursuant to the DBSH Share Ownership Scheme are as follows:
Number of DBSH ordinary shares Market value of DBSH ordinary shares
millions 2004
2003 2004
2003 At beginning of the year
3,580,829 3,281,329
53 36
At end of the year 3,477,829
3,580,829 56
53
13.2 DBSH SHARE OPTION PLAN
Under the DBSH Share Option Plan the “Option Plan”, options to subscribe for DBSH ordinary shares could be granted to DBSH Group executives who hold the rank of Vice President or
equivalent rank and above and selected employees of DBSH Group of a rank below the rank of Vice President or equivalent rank. This would also include executives of associated companies of
DBSH Group who hold the rank of Vice President or equivalent rank and non-executive directors of DBSH.
The movements of the unissued ordinary shares of DBSH of par value 1.00 each comprised in outstanding DBSH options granted under the Option Plan were as follows:
19
Number of unissued
ordinary shares During the year
Number of unissued
ordinary
shares Subscription
price per ordinary
share Date of
expiration DBSH
Options
January 1, 2004 Granted
Exercised Lapsed
December 31, 2004
1999 3,801,036
- 319,902
124,351 3,356,783
15.30 July 27, 2009
March 2000 1,586,200
- -
89,200 1,497,000
20.87 March 5, 2010
July 2000 1,114,600
- -
52,600 1,062,000
22.33 July 26, 2010
March 2001 11,625,000
- -
952,000 10,673,000
17.70 March 14, 2011
June 2001 21,000
- -
- 21,000
14.76 May 31, 2011
August 2001 1,414,000
- 422,000
56,000 936,000
12.93 July 31, 2011
January 2002 50,500
- -
- 50,500
13.70 January 1, 2012
March 2002 11,776,240
a
- 788,030
736,000 10,252,210
14.73 March 27, 2012
August 2002 1,215,000
- 178,200
140,100 896,700
12.27 August 15, 2012
October 2002 9,260
- -
- 9,260
11.73 October 9, 2012
December 2002 20,000
- -
- 20,000
11.47 December 17, 2012
February 2003 13,526,200
a
- 1,581,540
947,230 10,997,430
10.40 February 23, 2013
March 2003 15,000
- -
- 15,000
9.18 March 9, 2013
March 2004
- 7,494,000
- 531,500
6,962,500
14.73 March 1, 2014
46,174,036
a
7,494,000 3,289,672
3,628,981 46,749,383
a Restated since last reported at December 31, 2003 due to withdrawal of staff resignation in 2004.
Ordinary shares of DBSH of par value 1.00 issued upon exercise of share options during the year yielded the following proceeds, at the following market value:
In millions 2004
2003 Ordinary share capital – at par
3
Share premium 37
2 Proceeds
40 2
Market value, at exercise date, of shares issued 50
3
Amount under 500,000
13.3 DBSH PERFORMANCE SHARE PLAN
