199 1 ANNUA L REPORT POST OFFICE SAVINGS BANK OF SINGAPORE

Transcription

1 199 1 ANNUA L REPORT POST OFFICE SAVINGS BANK OF SINGAPORE

2 CONTENTS OF REPORT Highlights 1 Chairman's Statement 2 Board of Directors 4 The Year In Brief 5 POSBank Services 6 Savings Schemes 10 Lucky Draws 11 Community Relations 12 Personnel 13 Subsidiaries 15 Principal Officers 16 Financial Statements 17 Auditor's Report 18 Balance Sheet 19 Income & Expenditure Statement 20 Statement Of Changes In Financial Position 21 Notes To The Accounts 22 Changes & Trends 27 Directory Of Offices 28 Subsidiaries 32

3 HIGHLIGHTS NUMBER OF SAVINGS ACCOUNTS (Millions) TOTAL DEPOSITORS' BALANCES ($Millions) NUMBER OF SAVINGS TRANSACTIONS (Millions)

4 CHAIRMAN'SSTATEMENT I am pleased to report that the Bank managed to achieve a creditable net surplus of $97 million (before contribution to the Consolidated Fund) for 1991 despite the higher cost of funds with the implementation of the 'daily interest' computation method on 1 July 1991 and the Minimum Cash Balance maintained with the Monetary Authority of Singapore. The Bank netted its highest net deposit inflow in The $1,720.1 million boosted the Bank's deposit base to $15,645.9 million. In 1991, the Bank continued to face the problems of manpower shortage and queues at the branches. To address the problems, the Bank recruited 131 part-time tellers to man counters during peak periods. It also revised salary scales recently to help attract and retain staff. More self-service banking facilities were introduced through the POSBLine, POSBanker and Teleview to reduce reliance on manpower. The Cash-On-Line service, provided through 540 ATMs, continued to play an important role in diverting depositors away from the counter. In 1991, ATM withdrawals accounted for 87% of all cash withdrawals. During the year, the Bank increased the withdrawal limit of in-branch lobby ATMs to $2,000. In March 1992, it introduced the 'optional receipt' feature to improve turnaround and ATM availability time. I am proud to note that despite the 11.4% growth in ATM transactions, the ATM uptime for 1991 remained at an average of 98.5%.

5 To improve turnaround time at the counters, selfservice coin counting machines have been installed at branches with a high volume of coin deposits. Passbook account holders were also encouraged to convert their passbook account to the statementbased Passcard account, which does not require 'updating'. The Bank has also successfully tested the Teller Assist Unit (TAU) which automates the counting of notes. The machine has helped to reduce the average counter transaction time by about 20% to 30%. POSBank's major concerns in 1992 and the years to come lie in reducing queues in the face of manpower scarcity and the provision of quality service to meet higher customer expectations. I would also like to thank my fellow directors for their counsel and guidance throughout the year. CHUA KIM YEOW CHAIRMAN POST OFFICE SAVINGS BANK SINGAPORE JUNE 1992 To enable the Bank to provide quality service in an increasingly competitive banking environment, the Bank will be launching the service quality movement in July Efforts will be made to cultivate a positive service attitude in all staff through training, Work Improvement Teams and feedback from staff and depositors for service improvement. In the years ahead, the focus of the Bank will be the provision of quality service. Emphasis will therefore be placed on the development of staff commitment towards quality service and the promotion of greater automation. The Bank will also be promoting cashless systems like GIRO, Inter- Bank GIRO, POSBLine, etc to support the move towards a cashless society for Singapore. Finally, on behalf of the Board, I would like to record my thanks to all staff for their hard work. Since my previous statement, Mr Ngiam Tong Dow, Mr Thai Chee Ken and Mr Lock Sai Hung had retired from the Board. I wish to express my appreciation to them for their invaluable contribution and advice to the Board. I also welcome Mr Chuang Kwong Yong who was appointed to the Board on 1 July 1991 and Mrs Pek Siok Ching, Mrs Fang Ai Lian and Mr Tan Kin Lian who were appointed to the Board on 1 April 1992.

6 BOARD OF DIRECTORS Chairman Mr Chua Kim Yeow Members Mr Ngiam Tong Dow (up to 30 June 1991) Mr Chuang Kwong Yong (from 1 July 1991) Mr Thai Chee Ken (up to 31 March 1992) Dr Wang Kai Yuen Mr Goh Heng Leong Mr Lock Sai Hung (up to 31 March 1992) Mrs Pek Siok Ching (from 1 April 1992) Mrs Fang Ai Lian (from 1 April 1992) Mr Tan Kin Lian (from 1 April 1992) Mr Chua Kim Yeow Chairman Mr Chuang Kwong Yong Member Dr Wang Kai Yuen Member Mr Goh Heng Leong Member Mrs Pek Siok Ching Member Mrs Fang Ai Lian Member Mr Tan Kin Lian Member

7 THE YEAR IN BRIEF SAVINGS ACCOUNTS Number of Accounts At the end of 1991, the number of savings accounts with the Bank reached 4,001,495, an increase of 4.9% over Depositors' Balances Total balance standing to the credit of depositors increased by 17.3% from $13,240 million to $15,531 million. Deposits and Withdrawals For 1991, deposits totalled $22,950.2 million whilst withdrawals amounted to $21,196.7 million. The net deposit inflow was $1,753.5 million. Transactions Handled The number of transactions handled rose from 93 million to million in Cash Turnover The cash turnover was $44,147 million, a 9.7% increase over Interest Credited and Accrued Interest credited and accrued to depositors' accounts totalled $598.4 million, an increase of 29% over Interest Rates The Bank paid daily interest for passbook and Passcard accounts from 1 July This move was in line with the Bank's corporate objective of making it even more rewarding for depositors to bank with us. Following market trends, the Bank reduced its interest rates twice in Interest was compounded monthly and all interest earned was exempt from income-tax. AUTOMATED TELLER MACHINE (ATM) SERVICE Cash-On-Line (COL) Service The Bank's COL card base increased by 12.2% to reach 1.57 million by end CASHLESS SERVICES Current Accounts At the end of 1991, there were 286,773 current accounts, a 18.4% increase over Current Account GIRO Transfer Facility The number of standing orders rose by 74.2% from 108,339 in 1990 to 188,693 in Salary Crediting Scheme For 1991, 6.6 million salary credits totalling $5,446 million were made to POSBank accounts. GIRO Payment Service The Bank's GIRO payment service registered a 8% growth. At the end of 1991, the number of standing orders reached 2.7 million. Inter-Bank GIRO Service (IBG) For 1991, the number of Direct Debit Authorisation forms accepted by the Bank was 521,471, an increase of 109,248 or 26.5% over POSBLine The number of subscribers of this electronic telephone banking service increased by 55.7% to reach 280,682 at year end. Electronic Funds Transfer at Point-of-Sale (EFTPOS) In 1991, the Bank's depositors made 6.2 million debit transactions via Network for Electronic Transfers (NETS), an EFTPOS system.

8 POSBANK SERVICES BRANCH NETWORK Five new branches were opened during the year. They were:- Branch Date Opened Pasir Ris East 18 March 1991 Bukit Panjang 12 September 1991 Bishan Central 16 September 1991 Potong Pasir 7 October 1991 Yishun South 7 October 1991 The World Trade Centre Branch and Chai Chee Branch were re-located to nearby premises on 14 October and 25 October 1991 respectively. As at end 1991, the Bank had a total of 151 branches located strategically throughout the island. Longer Banking Hours Saturday afternoon banking facilities were available at 21 branches. Nine branches located in selected housing estates, department stores and supermarkets offered night banking services up to 7.00pm from Mondays to Saturdays. AUTOMATED TELLER MACHINE (ATM) SERVICE ATMs continued to provide depositors convenient access to their funds 24 hours a day. To meet the high demand for the ATM service, the number of ATMs at branches had been increased. Some branches were equipped with 2 or even 3 ATMs. Network At year end, there were 540 ATMs. Of these, 337 were new generation ATMs. The new generation ATMs, first introduced in August 1988, were user-friendly and had twice the cash loading capacity of the older model ATMs. On 7 June 1991, the Bank acquired 100 new generation ATMs in its continuing efforts to expand its ATM network for depositors' convenience. '$50-only' ATMs From 21 September 1989, selected new generation ATMs were programmed to dispense only $50 notes. In-branch Lobby ATMs This move helped ensure that ATMs did not run out of cash quickly. Another ATM alongside provided depositors a choice of $10 or $50 notes. At year end, there were 64 ATMs dispensing $50 notes only. On 2 March 1990, the Bank launched its first in-branch lobby ATM to supplement its counter withdrawal service. The withdrawal limit of the in-branch lobby ATM was increased from $1,000 to $2,000 on 18 May With this move, the Bank hoped to improve productivity all round, for both depositors and staff. As at 31 December 1991, the Bank had 23 in-branch lobby ATMs. 'Alternative ATM Location' Facility The in-branch lobby ATM allows depositors to withdraw up to $2,000 daily. In March 1991, the Bank was the first to introduce

9 the 'Alternative ATM Location' facility at its new generation ATMs. This feature saved depositors' time from having to shuttle from one ATM to another by directing depositors to the nearest ATM if the ATM they were using had run out of cash. Cash-On-Line (COL) Service As at 31 December 1991, the Bank's COL card base was 1,565,526. For 1991, cardholders effected 54.7 million ATM transactions. On 14 December 1991, a record sum of $39.46 million was dispensed from the Bank's ATMs. This exceeded the 1990 record by $4.2 million or 11.9%. The Bank had embarked on a replacement exercise for COL cards. The new design card incorporated a 6-digit Personal Identification Number (PIN) for higher security and allowed for change of PIN at the new generation ATMs for easy recall of PIN. CASHLESS SERVICES It automatically transferred funds from the depositor's savings account to cover payments for cheques issued and to honour cash cheques presented for payment over the counter. The facility also effected transfers as long as there was a negative balance in the current account arising from GIRO deductions, cheques cleared and bank charges. There was no limit to the transfer amount. From 28 June 1991, all new current accounts were automatically linked to the facility. By year end, the facility had 188,693 standing orders, an increase of 80,354 or 74.2% over Salary Crediting Scheme A total of 6.6 million salary credits amounting to $5,446 million were made to POSBank accounts in As at 31 December 1991, 1,655 companies from the private sector and 38 companies from the public sector participated in the Scheme. In support of the national drive to promote a cashless society and because of the shortage of staff, the Bank continued to promote and encourage the use of cashless services. Current Accounts 1991 saw a 18.4% growth in the number of current accounts. As at end 1991, there were 286,773 current accounts. The service was popular due largely to the ease of application and maintenance of account. No introducer was required and current account holders need not maintain a minimum balance in their accounts. With the POSBank current account, depositors can pay their bills without having to handle cash. Current Account GIRO Transfer Facility The facility, launched on 15 July 1988, provided convenience for the operation of the current account. GIRO Payment Service The Bank's GIRO payment service continued to be popular. By year end, the service registered a 8% increase in standing orders to reach 2.7 million, with total deductions amounting to $1,304 million. There were 31 organisations participating in the GIRO payment service as at end Inter-Bank GIRO Service (IBG) POSBank provides a myriad of services for its depositors. Since 1 April 1985, POSBank had been participating as a Receiving Bank in the IBG. As at 31 December 1991, the IBG processed 3.7 million credit transactions amounting to $3,903 million and 2.2 million debit transactions amounting to

10 $205 million. By end 1991, the Bank had accepted 521,471 Direct Debit Authorisation forms. As at 31 December 1991, there were 21 Town Councils using the IBG for the collection of service and conservancy charges. With POSBLine, depositors can conduct banking transactions via any push-button telephone. POSBLine Depositors could access POSBLine, a toll-free telephone banking service, from any push-button telephone, to make account balance enquiries, request cheque books, transfer funds between their savings and current accounts and make payments to 21 billing organisations. Some of the billing organisations were the Singapore Telecom, Public Utilities Board and The Insurance Corporation of Singapore. The number of subscribers increased by 55.7% from 180,252 at end 1990 to 280,682 by end The total number of transactions effected by subscribers increased by 13.2% from 6.28 million in 1990 to 7.11 million in From 3 May 1991, POSBLine users could also effect on-line transactions via Teleview, an interactive system. Electronic Funds Transfer at Point-of-Sale (EFTPOS) Network for Electronic Transfers (NETS), a joint venture with 5 local banks, was formed in 1986 to provide the EFTPOS service. The service remained popular and had attracted 1,747 retailers. POSBank depositors effected 6.2 million debit transactions valued at $388 million. This was an increase of 1.6 million transactions or 34.8% over POSBank's market share of the total NETS transactions for 1991 was 56%. Travellers' Cheques and Bank Drafts The sale of Travellers' Cheques and US$ Bank Drafts were available at 12 branches. The A$ and Sterling Pound Bank Drafts were available at the Bras Basah Head Office and City House Branch from 19 August POSBanker The Bank installed its first self-service interactive terminal, the POSBanker, at its Bras Basah Automated Branch on 14 September By touching specific boxes on the display screen, the depositor was guided step-by-step through his transaction. The POSBanker allowed depositors to have better control and easier access to their accounts at their convenience. Updated information on the Bank's services was available to depositors and the public.

11 As at 31 December 1991, there were POSBankers at 10 branches. Teleview Teleview was launched by Singapore Telecom on 1 November It was an interactive system which offered a wide range of services on banking, retailing, etc. Information was graphically displayed screen by screen for easy retrieval by Teleview subscribers. As one of the 'service providers' of Teleview, POSBank offered a range of information on its schemes and services, loans, lucky draws, ATM and branch locations. Teleview users could also find out where and how to apply for an account. In May 1991, the Bank introduced on-line services via the Teleview. Depositors who were POSBLine subscribers could enquire on the balance in their savings and current accounts, transfer funds between designated accounts, request cheque books and statements of account and enquire on GIRO, IBG and POSBLine bill payment services. The Bank was the first in Singapore to introduce the Teller Assist Unit which automates the counting of notes and improves the average counter transaction time by about 20% to 30%. The POSBanker offered more than just information on the Bank's services. Depositors could enquire on their GIRO and IBG linkages and transactions, transfer funds between designated accounts and request cheque books and statements of account. Coin Deposit Machine The Bank purchased 7 units of self-service coin deposit machines in November 1991 to be installed at branches with large volumes of coin deposit transactions. A receipt would be printed and dispensed for the depositor to tender at the counter for crediting into his account at his convenience. As at 31 December 1991, 2 coin deposit machines had already been installed. From September 1991, new features allowed depositors to request a transfer of their current account to another branch and to terminate their GIRO and IBG standing orders. Also from December 1991, subscribers of the POSBLine could enquire, add, amend or terminate their bill payment linkages. The self-service coin deposit machine speeds up transaction time for coin deposits.

12 SAVINGS SCHEMES Save-As-You-Earn (SAYE) Scheme The Scheme provided incentive bonuses of 10% and 20% of the interest earned for the first twelve- and twenty-four-month periods respectively to encourage savings of a fixed sum for 24 months. The Scheme had remained popular since its launch in From 1 July 1991, withdrawal of earned interest was allowed after maturity of the SAYE account without having to close the account. At year end, the Scheme saw a growth of 16.6%, bringing the number of SAYE accounts to 193,602. Depositors' balances amounted to $817 million, an increase of 18.9% over With the Passcard account, the depositor does not have to queue up to update his savings account. Passcard Account The Passcard account was introduced in It was a statement-based account which operated with a card instead of a passbook. With the Passcard account, depositors did not have to queue at the branch for updating of their accounts as monthly statements would be mailed to them. On 28 August 1990, the Passcard account was enhanced. The enhanced Passcard had a hologram instead of the depositor's photograph. It was more convenient as an account could be opened at any branch instead of only at branches with photographtaking facilities. Since March 1991, the Bank had also embarked on an exercise to encourage holders of passbook accounts with numerous 'unposted' transactions to convert their accounts to Passcard accounts. By year end, 50,800 passbook accounts had been converted. As at 31 December 1991, the Bank had 133,103 Passcard accounts. Students' Savings The 1991 National School Savings Campaign was launched on 22 March 1991 by Mr Sam Chong Keen, Political Secretary (Education). The Campaign message, 'Plan For Your Future. Save Now.' was brought to students through a series of activities during the Campaign. Posters helped carry the Campaign message. Student Gift Scheme The Student Gift Scheme was launched by Dr Seet Ai Mee on School Savings Day on 3 March The Scheme required primary one students to save at least $5, gradually or in a lump sum, in their POSBank personal savings account from 1 January to 31 December At year end, the Bank would automatically credit a gift of $5 into the account. The student's deposit of $5 and the Bank's gift would be on 'hold' for 5 years. As at 31 December 1991, 11,479 accounts or 83% of the accounts belonging to primary one students were credited with the Bank's gift of $5. Interest earned for the enhanced Passcard account was also credited monthly. Depositors who opened a Passcard account would have their accounts linked to POSBLine. At year end, 13,844 new Passcard accounts were opened. Since May 1990, the Bank had embarked on a conversion exercise to replace the old Passcard. By year end, 34,545 old Passcards had been converted. The Bank encourages the young to save for a rainy day.

13 LUCKY DRAWS Miss Singapore/Chinatown 1991, Miss Michelle Low keys in a five-digit number to start the 1991 Grand and Bonus Draws. The POSBank Lucky Draws provided depositors a chance to win $4.5 million in cash as an incentive to save throughout the year. There were three Draws, viz., Lucky Account, Grand and Bonus Draws with four qualifying periods. To participate in the Draws, depositors must retain a minimum of $1,000 in their accounts during any of the following qualifying periods :- Lucky Account Draw and Grand Draw: 5 January -31 March 1991 Grand Draw: 5 April -30 June July -30 September October - 31 December 1991 Bonus Draw: 5 January - 31 December 1991 Lucky Account Draw The Lucky Account Draw provided all depositors an equal chance to win as each depositor could qualify only once. Prizes in the Draw amounted to $1.25 million. Grand Draw The Grand Draw was based on the quantum of savings in the account and the retention period. One lucky number was assigned to every $1,000 retained during any of the four qualifying periods. In addition, a bonus lucky number was assigned to every $1,000 retained in the account throughout the period 5 January to 31 December Prizes in the Grand Draw totalled $2.5 million. Bonus Draw The Bonus Draw aimed at encouraging depositors to retain their funds with the Bank till the end of One lucky number was assigned to every $1,000 retained in the account during the qualifying period. Altogether, 6,821 prizes amounting to $750,000 were offered. All the Draws were witnessed and certified by representatives from the Auditor-General's Office.

14 COMMUNITY RELATIONS POSBank sponsors the Primate Kingdom in the Singapore Zoological Gardens. (Photograph by courtesy of Singapore Zoological Gardens) The Bank continued to play an active role as a good corporate citizen by sponsoring various community projects. Sponsorships and Donations The Bank sponsored community projects in education, the arts and sports. It encouraged family recreation through its donations to the Singapore Zoological Gardens, the Jurong BirdPark, the Singapore Science Centre and the Singapore Symphony Orchestra Open Air Concerts. Other organisations including the Community Chest of Singapore, Singapore Sports Council and the Vocational & Industrial Training Board had also benefitted from contributions made by the Bank.

15 PERSONNEL As part of our drive to promote the use of personal computers in our daily work, the Bank sent another 250 Management Officers and Bank Assistants for classes on various computer software programmes in Miss Lau Li Peow is the 'Most Outstanding Teller' for The Bank's staff strength was 1,090 as at end Staff Development To enhance our service quality, a new series of seminars on 'Superior Service' was launched. This together with our on-going booster seminars on 'Outstanding Service to the Public' served as constant reminders to our staff of the need to work towards excellent service. A total of 650 Management Officers and Bank Assistants attended these seminars. The Bank also entered into a contract on 2 October 1991 with Service Quality (SQ) Centre, a joint project of Singapore Airlines and National Productivity Board, to train its employees in the provision of quality service. Most Outstanding Teller Award The 'Most Outstanding Teller Award', initiated in 1986, aimed to recognise and reward exemplary tellers who upheld the Bank's image with their efficient, helpful and courteous service. Ten counter tellers received merit awards. Miss Lau Li Peow from the Centrepoint Branch won the Most Outstanding Teller Award for her positive work attitude and consistent outstanding performance. Under the Bank's Management Development Programme, courses on Interpersonal Skills, Effective Supervision, Management Writing Skills and Performance Appraisal Skills were conducted inhouse for 150 Management Officers. Metro Orchard Branch is the winner of the 'Most Outstanding Branch' award in the category for smaller branch outlets. Most Outstanding Branch Award The Most Outstanding Branch must achieve a high standard in branch, ATM and cash management, business performance and teamwork. Serangoon Garden Branch is the 'Most Outstanding Branch' in the Principal and Full Branch category for the third consecutive year.

16 'Budget 180' from Finance Division is the winner of a Gold Award in the 1991 Public Sector WITS Convention. For the group of Principal and Full Branches, Serangoon Garden Branch emerged the winner. Metro Orchard Superbank was the winner in the Special Award category comprising the Tanglin Post Office outlet, Superbanks and Ordinary Branches. The Metro Orchard Superbank also won in Courtesy Campaign The Bank organised its annual in-house Courtesy Campaign in July 1991 in conjunction with the National Courtesy Campaign. During the Campaign, activities were held to sustain awareness of courtesy. The Bank also emphasized courtesy in its training programmes throughout the year for staff. Productivity Campaign In-house activities and a Staff Seminar were organised to promote productivity and reinforce staff commitment to achieve quality and excellence in work. Work Improvement Teams (WITs) recommended ways to streamline work procedures. Staff involvement in WITs were given recognition through a system of rewards. In September 1991, three of the Bank's WITs won awards at the 1991 Public Sector WITS Convention, organised by the Civil Service Institute. Two WITs 'Budget 180' and 'D' Image' won gold awards while 'Cents & Sense' won a silver award. Two other WITs, 'Bandit' and 'Network', won the 'Illustrious WITS Award' for their commitment to WITs. Speak Mandarin Campign The Bank organised in-house activities and contests to encourage the use of Mandarin instead of dialects. WITs help to streamline work procedures and improve productivity.

17 SUBSIDIARIES Credit POSB provides renovation and furnishing loans of up to $30,000. POSB Investment Pte Ltd (PIPL) PIPL is a whollyowned subsidiary of the Bank. Its principal activity is that of an investment holding company. Its whollyowned subsidiaries are Credit POSB Pte Ltd and POSB Computer Services Pte Ltd. PIPL has a 10% interest in Marina Centre Holdings Pte Ltd, 16.67% interest in Network for Electronic Transfers (Singapore) Pte Ltd and 11% interest in SAL Industrial Leasing Ltd. POSB Computer Services Pte Ltd (PCS) PCS, the computer subsidiary of the Bank, provided information technology support to the Bank's operations for mortgage loans to individuals at fair interest rates for the purchase of residential and commercial properties. It also grants renovation and furnishing loans. The company also administers the Tuition Fee Loan Scheme for the National University of Singapore and Nanyang Technological University. At the same time, it also manages the staff housing loan schemes for the Civil Service, statutory boards and government-linked companies. On 1 November 1991, the company extended its Commercial Property Loan Scheme for financing the purchase of old HDB shops by existing tenants. PCS maintained a high level of efficiency in the computer operations and management of the Bank's network including ATMs, banking terminals, POSBLine, POSBankers, NETS and Teleview, which were vital to the Bank's objective of maintaining high customer service levels. PCS also developed and maintained cost-effective application systems for the Bank. Interest Rates As at 31 December 1991, CPPL's lending rates were :- Computer training was a major part of the Bank's skills upgrading programme. In addition to upgrading the skills of its own professional staff, PCS also provided training to the Bank's staff in basic computer technology and applications. Credit POSB Pte Ltd (CPPL) Since its inception in 1974, CPPL has been providing

18 PRINciPAL OFFICERS POSBank General Manager - Mr Bertie Cheng Chief Manager - Mr Ng Tee Geok Director (Banking & Information Services) - Mr Wee Tew Lim Director (Asset Management) - Mrs Ho Bee Lian POSB Computer Services Pte Ltd Director (Finance) - Miss Chua Bee Choo Senior Manager - Mr Teo Kim Soon Manager (Property) - Mr Loh Ah Soh Manager (Human Resource) - Mr Cheah Pin Thong Credit POSB Pte Ltd Manager (Internal Audit) - Mr Ang Khee Huat Manager (Legal & Secretariat) - Mrs Kwok Moon Moi Senior Manager - Mr Ng Kim Soon Chief Security Officer - Mr Toh Kooi Hor Head (Public Relations & Marketing) - Mrs Chan Kak Siok

19 FINANCIAL STATEMENTS

20 REPORT ON THE AUDIT OF THE ACCOUNTS OF THE POST OFFICE SAVINGS BANK OF SINGAPORE FOR THE YEAR ENDED 31 DECEMBER 1991 The accounts of the Post Office Savings Bank of Singapore have been examined under my direction and in accordance with the provisions of The Post Office Savings Bank of Singapore Act (Chapter 237). I have obtained all the information and explanations I have required. In my opinion :- (a) the accompanying accounts show fairly the state of affairs of the Bank and of the Group at 31 December 1991 and the results and changes in financial position of the Bank and of the Group for the year ended on that date; (b) proper accounting and other records have been kept; and (c) the receipt, expenditure and investment of moneys and the acquisition and disposal of assets by the Bank during the year have been in accordance with the provisions of The Post Office Savings Bank of Singapore Act (Chapter 237). I have considered the accounts and auditors' reports of all the subsidiaries of which I have not acted as auditor, being accounts that have been included in the consolidated accounts. The names of these subsidiaries are disclosed in Note 5 to the accounts. I am satisfied that the accounts of the subsidiaries that have been consolidated with the accounts of the Bank are in form and content appropriate and proper for the purposes of the preparation of the consolidated accounts, and I have received satisfactory information and explanations as required by me for those purposes. The auditors' reports on the accounts of the subsidiaries were not subject to any qualification, and did not include any comment made under Section 207 (3) of the Companies Act, Chapter 50. CHEE KENG SOON AUDITOR-GENERAL SINGAPORE 19 MAY 1992

21 THE POST OFFICE SAVINGS BANK OF SINGAPORE AND SUBSIDIARIES BALANCE SHEET As at 31 December 1991 The accompanying notes form part of the accounts. CHUA KIM YEOW CHAIRMAN POST OFFICE SAVINGS BANK OF SINGAPORE 19 MAY 1992

22 THE POST OFFICE SAVINGS BANK OF SINGAPORE AND SUBSIDIARIES INCOME AND EXPENDITURE STATEMENT For the year ended 31 December 1991 The accompanying notes form part of the accounts.

23 THE POST OFFICE SAVINGS BANK OF SINGAPORE AND SUBSIDIARIES STATEMENT OF CHANGES IN FINANCIAL POSITION For the year ended 31 December 1991 The accompanying notes form part of the accounts.

24 THE POST OFFICE SAVINGS BANK OF SINGAPORE AND SUBSIDIARIES NOTES TO THE ACCOUNTS 31 December SIGNIFICANT ACCOUNTING POLICIES 1.1 Accounting Convention The Bank's accounts have been prepared under the historical cost convention. 1.2 Basis of Consolidation The group accounts include the accounts of the Bank and its subsidiaries mentioned in Note 5. A subsidiary is a company in which more than 50% of the issued share capital is held by the Bank. All transactions between the Bank and the subsidiaries are eliminated on consolidation and the consolidated accounts reflect external transactions only. 1.3 Investments Government Securities, Bonds, Loan Stocks, Negotiable Certificates of Deposit and Quoted Shares are stated at the lower of cost and market value, on a portfolio basis. Cost is determined on the average method Note Issuance Facilities are stated at face value less unearned discounts Unquoted Shares in Corporations, are stated at cost less provision for permanent diminution in the value of these investments, if any. 1.4 Loans Loans are stated net of provisions for possible losses. Known bad debts are written off and specific provision is made for accounts which are considered doubtful. In addition, an amount is set aside as a general provision for doubtful debts to cover losses, which although not separately identified, can be present in any portfolio of loans. 1.5 Depreciation Fixed Assets are stated at cost less accumulated depreciation. Depreciation is provided as follows:-

25 Where land and building costs cannot be practically segregated, depreciation has been provided on both land and building over 50 years; or the lease period, whichever is shorter. Fully depreciated assets are retained in the accounts until they are no longer in use. Fixed Assets costing less than S$1,000 per item are charged to the Income and Expenditure Statement in the year of purchase. It is the policy of the Bank not to capitalise expenditure incurred on renovations, but to treat it as outright expenditure in the year it was incurred. Two of the subsidiaries however capitalise expenditure on renovations. 1.6 Income Recognition Dividends are taken up on the dates they are declared payable. All other income are taken up on the accrual basis. 1.7 Deferred Taxation The tax expense is determined on the basis of tax effect accounting, using the liability method and it is applied to all significant timing differences. Deferred tax benefit is recognised in the accounts only when there is a reasonable certainty of realisation. 2. PRINCIPAL ACTIVITIES The principal activities of the Bank consist of the provision of retail banking services and the mobilisation of the funds for public development in accordance with The Post Office Savings Bank of Singapore Act (Chapter 237). The principal activities of the subsidiaries are stated in Note CAPITAL RESERVE The capital reserve of the Group includes the capitalisation of S$24 million of the profits of two subsidiaries for bonus share issues in 1985 and 1991.

26 4. FIXED ASSETS

27 5. INTEREST IN SUBSIDIARIES 6. CONTRIBUTION TO CONSOLIDATED FUND This represents the contribution to be made to the Consolidated Fund in accordance with the Statutory Corporations (Contributions to Consolidated Fund) Act The contribution is based on 20% of the Net Surplus of the Bank. 7. SIGNIFICANT TRANSACTIONS BETWEEN THE BANK AND ITS SUBSIDIARIES

28 8. TAXATION One of the subsidiaries has deferred tax benefit amounting to approximately S$11.9 million (1990 : S$9.6 million) which has not been recognised in the accounts. 9. DEFERRED TAXATION 10. COMMITMENTS As at 31 December 1991, capital expenditure approved and contracted for by the Bank was approximately S$27.1 million (1990: S$28.4 million). This amount was not provided for in the accounts. 11. CONTINGENT LIABILITY a) A contingent liability may arise from the Bank's acceptance of a settlement sum of S$7.2 million from a party who was not the borrower or guarantor of the loan. This amount has not been provided for in the accounts. b) No provision for tax was made by a subsidiary for the income from the liquidation of its foreign investments in Should the Inland Revenue Department finally deem this income taxable, the tax would be S$2.1 million. 12. COMPARATIVE FIGURES The comparative figures in the accounts have been reclassified where appropriate to conform with this year's presentation.

29 CHANGES & TRENDS

30 DIRECTORY OF OFFICES BRAS BASAH (HEAD OFFICE) POSB Centre 73 Bras Basah Road Singapore 0718 BRANCHES Alexandra Blk 136 Alexandra Road # Singapore 0315 Alexandra Village Blk 121 Bukit Merah Lane 1 #01-06 Singapore 0315 Ang Mo Kio Central Blk 713 Ang Mo Kio Avenue 6 # Singapore 2056 Ang Mo Kio East Blk 452 Ang Mo Kio Avenue 10 # Singapore 2056 Ang Mo Kio North Blk 629 Ang Mo Kio Avenue 4 # Singapore 2056 Ang Mo Kio West Blk 226G Ang Mo Kio Avenue 1 # Singapore 2056 Balestier Plaza 400 Balestier Road #01-18 Balestier Plaza Singapore 1232 Balestier Road Blk 2 Thomson/ Balestier Road Junction # Balestier Hill Shopping Centre Singapore 1232 Beach Road 101 Beach Road #01-01 Kimetal Building Singapore 0718 Bedok Central Blk 213 Bedok North Street 1 # Bedok Town Centre Singapore 1646 Bedok North Blk 539A Bedok North Street 3 # Singapore 1646 Bedok South Blk 46 Bedok South Avenue 3 # Singapore 1646 Bishan Central Blk 507 Bishan Street 11 # Singapore 2057 Boon Lay Blk 221 Boon Lay Place # Boon Lay Shopping Centre Singapore 2264 Brickworks Estate Blk 1 Jalan Bukit Merah # Singapore 0315 Bukit Batok Central Blk 636 Bukit Batok Central. #01-02 Singapore 2365 Bukit Batok East Blk 272 Bukit Batok East Avenue 4 #01-76 Singapore 2365 Bukit Batok North Blk 375 Bukit Batok Street 31 # Singapore 2365 Bukit Batok West Blk 166 Bukit Batok West Avenue 8 # Singapore 2365 Bukit Ho Swee Blk 22 Havelock Road # Singapore 0316 Bukit Merah Central Blk 161 Bukit Merah Central # Singapore 0315 Bukit Panjang Blk 260 Bangkit Road #01-15 Singapore 2367 Bukit Purmei Blk 109 Bukit Purmei Road # Singapore 0409 Bukit Timah Plaza 1 Jalan Anak Bukit #B2-07 Bukit Timah Plaza Singapore 2158 Cambridge Road Blk 42 Cambridge Road # Singapore 0821 Centrepoint 176 Orchard Road #01-27 Centrepoint Singapore 0923 Chai Chee Blk 25A Chai Chee Road #01-455/457 Singapore 1646 Changi Airport Changi Airport Passenger Terminal Building II Basement #B Singapore 1781 Changi Road 398 Changi Road #01-14 Castle Court Singapore 1542 Changi Village Blk 5 Changi Village Road # Singapore 1750 Chin Swee Road 151 Chin Swee Road #01-17 Manhattan House Singapore 0316 Chun Tin Court 15 Yuk Tong Avenue Singapore 2159 City House 36 Robinson Road #01-00 City House Singapore 0106 Clementi Central Blk 449 Clementi Avenue 3 # Singapore 0512

31 Clementi East Blk 352 Clementi Avenue 2 #01-91 Singapore 0512 Colombo Court 1 North Bridge Road #01-04 Colombo Court Singapore 0617 Coronation Plaza 587 Bukit Timah Road #02-16 Coronation Shopping Plaza Singapore 1026 Far East Plaza 14 Scotts Road #03-06 Far East Plaza Singapore 0922 General Post Office Fullerton Building Singapore 0104 Geylang 388 Geylang Road Singapore 1438 Geylang East Blk 95 Aljunied Crescent # Singapore 1438 Geylang West Blk 53 Sims Place # Singapore 1438 Ghim Moh Blk 10 Ghim Moh Road #01-88 Singapore 1027 Goldhill Centre Unit 193 Thomson Road Goldhill Centre Singapore 1130 Henderson Road Blk 113 Bukit Merah View # Singapore 0315 Hillview Blk 17 Hillview Avenue # Singapore 2366 Hougang Blk 204 Hougang Street 21 #01-99 Singapore 1953 Hougang Central Blk 805 Hougang Central # Singapore 1953 Hougang North Blk 685 Hougang Street 61 # Singapore 1953 Hougang South Blk 106 Hougang Avenue 1 # Singapore 1953 Jalan Besar Blk 637 Veerasamy Road # Singapore 0820 Jalan Eunos Blk 6 Eunos Crescent # Singapore 1441 Jalan Kayu Blk 4 Seletar Road #01-89 Singapore 2880 Jalan Sultan Blk 19 Jalan Sultan # Singapore 0719 Joo Chiat 473 Joo Chiat Road Singapore 1542 Joo Chiat Complex Blk 2 Joo Chiat Road # Joo Chiat Complex Singapore 1542 Jurong 5 Kang Ching Road Singapore 2261 Jurong East Blk 255 Jurong East Street 24 # Singapore 2260 Jurong East Central Blk 135 Jurong East Street 13 # Singapore 2260 Jurong Town Blk 106 Yung Kuang Road #01-19 Singapore 2261 Jurong West Blk 442 Jurong West Avenue 1 # Singapore 2260 Kaki Bukit Blk 632 Bedok Reservoir Road # Singapore 1647 Kallang Bahru Blk 67 Kallang Bahru # Singapore 1233 Kampong Silat Blk 146 Jalan Bukit Merah # Singapore 0316 Kampong Ubi Blk 301 Ubi Avenue 1 # Singapore 1440 Kent Ridge National University of Singapore Kent Ridge Campus #SC207 Yusof Ishak House Singapore 0511 King George's Avenue Blk 803 King George's Avenue # Singapore 0820 Kreta Ayer Blk 333 Kreta Ayer Road #01-17 Singapore 0208 MacPherson 45 MacPherson Road Singapore 1334 Marina Square 6 Raffles Boulevard # Marina Square Singapore 0103 Marine Parade Blk 83 Marine Parade # Singapore 1544 Marsiling Blk 18 Marsiling Lane # Singapore 2573 Meridien Centre 100 Orchard Road #02-70 Meridien Shopping Centre Singapore 0923

32 Mountbatten Blk 51 Old Airport Road # Singapore 1439 Nanyang Estate Blk 960 Jurong West Street 92 # Singapore 2264 Newton (Drive-ln) 135 Bukit Timah Road Singapore 0922 NOL Building 456 Alexandra Road #01-00 NOL Building Singapore 0511 Orchard Towers 1 Claymore Drive #01-07 Orchard Towers Rear Block Singapore 0922 Outram Road 317 Outram Road #01-51 Concorde Shopping Centre Singapore 0316 Pandan Valley Blk B Pandan Valley # Pandan Valley Condominium Singapore 2159 Parklane 35 Selegie Road #01-06 Parklane Shopping Mall Singapore 0718 Parkway Parade 80 Marine Parade Road #01-02 Parkway Parade Singapore 1544 Pasir Panjang Telecom Quarters 11.5km Pasir Panjang Road Singapore 0511 Pasir Ris East Blk 442 Pasir Ris Drive 6 #01-32 Singapore 1851 Pearl's Centre 100 Eu Tong Sen Street #01-12 Pearl's Centre Singapore 0105 Peninsula Plaza 111 North Bridge Road #01-28 Peninsula Plaza Singapore 0617 Plaza Singapura 68 Orchard Road #02-29 Plaza Singapura Singapore 0923 Potong Pasir Blk 146 Potong Pasir Avenue 1 # Singapore 1335 Queenstown Blk 40A Commonwealth Avenue # Singapore 0314 Raffles City 252 North Bridge Road #02-23 Raffles City Singapore 0617 Raffles Place 11 Collyer Quay #02-24 The Arcade Singapore 0104 Robinson Road 79 Robinson Road #01-02 CPF Building Singapore 0106 Rochor Blk 1 Rochor Road # Singapore 0718 Sembawang 604 Sembawang Road #01-12 Sembawang Shopping Centre Singapore 2776 Serangoon Central Blk 254 Serangoon Central Drive # Singapore 1955 Serangoon Garden 9 Kensington Park Road Singapore 1955 Serangoon North Blk 153 Serangoon North Avenue 1 # Singapore 1955 Serangoon Road 291 Serangoon Road Singapore 0821 Siglap 42 Upper East Coast Road Singapore 1545 Simpang Bedok Bedok Road # Bedok Shopping Complex Singapore 1646 Singapore General Hospital Blk 4 Outram Road Wards Building Singapore 0316 Singapore Polytechnic Dover Road # Polytechnic Centre Singapore 0513 South Bridge Road 76 South Bridge Road #01-00 Singapore 0105 Stirling Road Blk 163 Stirling Road # Singapore 0314 Taman Warna (Drive-ln) 100 Taman Warna #01-01 Singapore 1027 Tampines Central Blk 513 Tampines Central # Singapore 1852 Tampines East Blk 201E Tampines Street 23 # Singapore 1852 Tampines South Blk 138 Tampines Street 11 #01-98 Singapore 1852 Tampines Way Blk 23 Hougang Avenue 3 # Singapore 1953 Tampines West Blk 827 Tampines Street 81 # Singapore 1852

33 Tanglin Halt Blk 39 Tanglin Halt Road #01-119W Singapore 0314 Tanjong Katong 245 Tanjong Katong Road Singapore 1543 Tanjong Pagar Blk 1 Kee Seng Road #01-26 Tanjong Pagar Plaza Singapore 0208 Teban Gardens Blk 54 Teban Gardens Road # Singapore 2260 Teck Whye Blk 141 Teck Whye Lane # Singapore 2368 Telok Blangah East Blk 10 Telok Blangah Crescent # Singapore 0409 Telok Blangah West Blk 81 Telok Blangah Drive # Singaproe 0410 Thomson Plaza 301 Upper Thomson Road #01-37 Thomson Plaza Singapore 2057 Thomson Road 246R Upper Thomson Road Singapore 2057 Tiong Bahru Blk 58 No 21 Seng Poh Road Singapore 0316 Toa Payoh Central Blk 178 Toa Payoh Central # Singapore 1231 Toa Payoh East Blk 20 Toa Payoh Lorong 7 # Singapore 1231 Toa Payoh North Blk 107 Toa Payoh Lorong 1 # Singapore 1231 Towner Road Blk 102 Towner Road # Singapore 1232 Treasury Building 8 Shenton Way #B1-01 Treasury Building Singapore 0106 Upper Aljunied 510 MacPherson Road Singapore 1336 Upper Cross Street Blk 531 Upper Cross Street #01-01 Singapore 0105 Upper Serangoon Road 760B Upper Serangoon Road #02-02 Upper Serangoon Shopping Centre Singapore 1953 Upper Thomson Road 1 Thong Soon Avenue Singapore 2678 West Coast Road Blk 501 West Coast Road # Singapore 0512 Whampoa Drive Blk 102 Whampoa Drive #01-12 Singapore 1232 Woodlands Central Blk 2A Woodlands Centre Road # Singapore 2573 World Trade Centre 1 Maritime Square #02-88 World Trade Centre Singapore 0409 Yishun Central Blk 924 Yishun Central 1 # Singapore 2776 Yishun North Blk 261 Yishun Street 22 # Singaproe 2776 Yishun South Blk 844 Yishun Street 81 # Singapore 2276 Yishun West Blk 106 Yishun Ring Road # Singapore 2776 Zhu Jiao Blk 664 Buffalo Road #01-01 Singapore 0821 SUPERBANKS Metro Grand 304 Orchard Road #05-00 Lucky Plaza Singapore 0923 Metro Orchard 25 Scotts Road 4th Level Holiday Inn Singapore 0922 Metro Plaza 7500D Beach Road 1st Level Metro Golden Mile The Plaza Singapore 0719 Yaohan Orchard 68 Orchard Road Basement 2 Plaza Singapura Singapore 0923 AUTOMATED BRANCHES POSB Centre (24-Hour) 73 Bras Basah Road Singapore 0718 Beach Road 101 Beach Road #01-01 Kimetal Building Singapore 0718 City House 36 Robinson Road #01-00 City House Singapore 0106 Pearl's Centre 100 Eu Tong Sen Street #01-12 Pearl's Centre Singaproe 0105 Plaza Singapura 68 Orchard Road #02-29 Plaza Singapura Singapore 0923 POSBANK COUNTERS AT POST OFFICE Tanglin Post Office (Drive-In) 60 Tanglin Road Singapore 1024 (As at end May 1992)

34 SUBSUDIARIES POSB Investment Pte Ltd 100 Taman Warna #02-00 Singapore 1027 Credit POSB Pte Ltd 79 Robinson Road #10-00 CPF Building Singapore 0106 POSB Computer Services Pte Ltd 10 Aljunied Road Singapore 1438

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