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