DERIVATIVES CONTINGENT LIABILITIES AND COMMITMENTS

42.2 DERIVATIVES

The table below shows the contractual undiscounted cash lows for derivatives settled on net and gross settlement basis. Less than 1 week to 1 to 3 3 to 12 More than In millions 7 days 1 month months months 1 year Total 2013 Derivatives settled on a net basis a 407 7 44 7 379 742 Derivatives settled on a gross basis – outlow 33,741 58,422 92,906 182,712 102,481 470,262 – inlow 34,051 58,514 93,062 182,626 102,036 470,289 2012 Derivatives settled on a net basis a 469 8 10 53 151 283 Derivatives settled on a gross basis – outlow 30,018 63,640 111,228 136,208 77,202 418,296 – inlow 30,017 63,741 111,257 136,421 76,786 418,222 a Positive indicates inflow and negative indicates outflow of funds

42.3 CONTINGENT LIABILITIES AND COMMITMENTS

The table below shows the Group’s contingent liabilities and commitments. For commitments, it refers to the period where they expire based on the remaining period to contractual maturity date as at the balance sheet date: Less than 1 to 3 3 to 5 Over In millions 1 year years years 5 years Total 2013 Guarantees, endorsements and other contingent items 20,919 – – – 20,919 Undrawn loan commitments a and other facilities 139,109 8,261 8,037 2,642 158,049 Operating lease commitments 184 277 244 67 772 Capital commitments 18 – – – 18 Total 160,230 8,538 8,281 2,709 179,758 2012 Guarantees, endorsements and other contingent items 21,059 – – – 21,059 Undrawn loan commitments a and other facilities 126,127 3,656 3,744 2,277 135,804 Operating lease commitments 211 301 255 108 875 Capital commitments 17 2 – – 19 Total 147,414 3,959 3,999 2,385 157,757 a Undrawn loan commitments are recognised at activation stage and include commitments which are unconditionally cancellable by the Group The Group expects that not all of the contingent liabilities and undrawn loan commitments will be drawn before expiry. 171 43 CAPITAL MANAGEMENT The Group’s capital management objectives are to diversify its sources of capital, to allocate capital eficiently, guided by the need to maintain a prudent relationship between available capital and the risks of its underlying businesses, and to meet the expectations of key constituencies, including investors, regulators and rating agencies. The Group has complied with all externally imposed capital requirements whether prescribed by regulation or by contract throughout the inancial year. The capital management process, which is under the oversight of the Capital Committee, includes periodic reviews of both the demand for and supply of capital across the Group. Overseas subsidiaries and non-banking subsidiaries of the Group may be required to comply with country- speciic and industry-speciic capital requirements depending on the jurisdiction and industry in which they operate, and are allocated capital accordingly to ensure regulatory compliance. Quarterly updates on the Group’s capital position are provided to the Board of Directors. The Group is subject to the capital adequacy requirements set out in the Monetary Authority of Singapore’s Notice to Banks No. 637 Notice on Risk Based Capital Adequacy Requirements for Banks incorporated in Singapore, which effects the Basel Committee on Banking Supervision’s capital adequacy framework in Singapore. 44 SEGMENT REPORTING

44.1 BUSINESS SEGMENT REPORTING