international bank of asia limitedcorporate finance at ubs warburg. currently, mr. ng is senior...

International Bank of Asia Limited港基國際銀行有限公司

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03二零零三年年報

The mission of International Bank of Asia is to expand and diversify

its full range of retail financial services in Hong Kong, leverage on the

Group’s strength, achieve a proper and prudent return on

shareholders’ funds, enhance the quality and efficiency of services

for clients, ensure a rewarding career for employees, and serve the

communities in which it operates.

Integrity: strictly adhering to professional and moral values

Prudence: using good judgement to safeguard the shareholders’ and depositors’funds

Diversification: developing diversified products and services, sources of revenue, andportfolio in order to increase profit and control risk

Quality: offering superior customer service to achieve excellence

Control: exercising control over operating expenses and credit exposure

Corporate Governance complying with all ordinances and regulations, and adhering to theand Compliance: highest standards of transparency and equitable treatment for all

shareholders

Productivity: achieving the highest level of efficiency in providing service andexecuting transactions, and fully utilizing advanced technologies

Profitability: managing resources to achieve a satisfactory return on investment

Communication: communicating effectively and efficiently with staff, management,customers, investors and the community

Innovation: developing ideas which will enhance the Bank’s performance

Loyalty: being faithful to the Bank, colleagues, customers and shareholders

IBA Mission

IBA Principles

FIVE-YEAR FINANCIAL SUMMARY 2

CORPORATE INFORMATION 3

DIRECTORS’ STATEMENT

hong kong and china economiEs 15

IBA Performance 17

DIRECTORS’ REPORT 25

AUDITORS’ REPORT 29

CONSOLIDATED INCOME STATEMENT 30

CONSOLIDATED BALANCE SHEET 31

BALANCE SHEET 32

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 33

CONSOLIDATED CASH FLOW STATEMENT 34

NOTES TO THE FINANCIAL STATEMENTS 36

UNAUDITED SUPPLEMENTARY FINANCIAL INFORMATION 111

contents

Five-Year Financial Summary

2 INTERNATIONAL BANK OF ASIA LIMITED ANNUAL REPORT 2003

In 2003, International Bank of Asia Group achieved a profit of HK$138 million. The return on average assets was 0.39% and

return on average equity was 3.66%. During the year current, fixed and other deposits of customers increased 30.5% to

HK$29 billion. Loans and advances increased by 4.0% to HK$16 billion. Total assets were HK$38 billion. The Group had total

capital funds of HK$3.8 billion, and a capital adequacy ratio of 19.79%.

2003 2002 2001 2000 1999

(Restated)

Profit and Loss Account (HK$ Million)

Profit before Taxation 150 222 307 276 22

Profit Attributable to Shareholders 138 220 295 244 24

Consolidated Balance Sheet (HK$ Million)

Shareholders’ Funds 3,784 3,767 3,655 3,479 3,310

Total Assets 37,889 32,314 28,612 29,242 24,068

Advances to Customers Less Reserves 15,566 14,961 16,384 17,426 13,514

Current, Fixed and Other Deposits

of Customers 28,796 22,071 22,246 23,396 18,935

Certificates of Deposit Issued 2,652 1,810 1,615 1,162 900

Share Statistics (HK$)

Earnings per Share1 (Weighted Average Basis) 0.12 0.19 0.25 0.21 0.02

Earnings per Share1 (Adjusted) 0.12 0.19 0.25 0.21 0.02

Selected Returns and Ratios (%)

Return on Average Equity 3.66 5.94 8.28 7.20 0.72

Return on Average Assets 0.39 0.73 1.04 0.93 0.10

Unadjusted Capital Adequacy Ratio 19.79 20.84 19.72 18.07 22.38

Average Liquidity Ratio (for December) 57.89 52.49 47.11 42.49 48.50

Loan to Deposit Ratio 49.50 62.65 68.67 70.96 68.13

Note:

1. Earnings per share are calculated on profit attributable to shareholders of HK$138,138,000 (2002 (restated): HK$220,444,000)

and on 1,172,160,000 (2002: 1,172,160,000) ordinary shares in issue during the year. There are no convertible loan capital,

options or warrants outstanding which would cause a dilution effect on earnings per share.

Corporate Information

3INTERNATIONAL BANK OF ASIA LIMITEDANNUAL REPORT 2003

SHAREHOLDERS75% – Fubon Financial Holding Co., Ltd.

25% – Public

SOLICITORSClifford Chance

Slaughter and May

AUDITORSKPMG

COMPANY SECRETARYIvan Young

REGISTERED OFFICEInternational Bank of Asia Building

38 Des Voeux Road Central

Hong Kong



BOARD OF DIRECTORS

Ming-Hsing (Richard) TSAI

Chairman, aged 46. Mr. Tsai joined the Fubon Group in 1982. He is severally the

President, the Executive Director and the Co-Chief Executive Officer of Fubon

Financial Holding Co., Ltd. Mr. Tsai also acts as the Chairman for Fubon Life

Assurance Co., Ltd. and Fubon Asset Management Co., Ltd. and has over 20

years of experience in these businesses. He is currently also the Vice Chairman of

Taiwan Cellular Corporation, a provider of telecommunication services. Prior to

this, Mr. Tsai was also the Chairman of Fubon Securities Co., Ltd. Mr. Tsai holds a

Master of Business Administration Degree (1981) from New York University and a

Bachelor of Business Administration Degree (1979) from the National Taiwan

University. Mr. Tsai is the brother of Ming-Chung (Daniel) Tsai. He became a

Director of IBA in February 2004.

Mike M. MURAD

Vice Chairman and Executive Director, aged 62. Dr. Murad was appointed

Managing Director and Chief Executive Officer of IBA in 1988. He holds a

Bachelor’s Degree in Business Administration from Cleary College, U.S.A., a

Master’s Degree in Business Administration from the University of Miami, U.S.A.

and banking and management degrees from Stonier Graduate School of Banking

at Rutgers University, U.S.A., the University of Michigan Graduate School of

Banking and the University of Wisconsin and the Harvard Executive Management

Program. He received an honorary degree, Doctor of Humane Letters, from

DePaul University in 1998. Dr. Murad has held a number of senior executive

positions in international and retail banking. His 35-year banking career includes

appointments in the U.S.A., Hong Kong and Bahrain. In the U.S.A., he was

Executive Vice President of Sun Bank of Miami. He was also a lecturer at the

University of Maryland and is the author of a book entitled Profit Planning: Theory

and Implementation, and has contributed articles on banking and financial

markets to the Asian Wall Street Journal and International Herald Tribune. He was

the recipient of the Paul Harris Fellow Award of The Rotary Foundation of Rotary

International in 1992 for charitable work. Dr. Murad is a Director and a member

of the Executive Committee of Arab Banking Corporation – Egypt (S.A.E.). He is

also a member of the Board of Trustees of DePaul University in Chicago, U.S.A.



Ming-Chung (Daniel) TSAI

Vice Chairman, aged 48. Mr. Tsai joined the Fubon Group in 1981. He is currently

Vice Chairman, Executive Director and Co-Chief Executive Officer of Fubon

Financial Holding Co., Ltd. as well as the Vice Chairman of Taipeibank Co., Ltd.

Mr. Tsai is also the Chairman of Taiwan Cellular Corporation, Taiwan Fixed

Network Corporation, TransAsia Telecom. Inc. and Fubon Land Development Co.,

Ltd. Mr. Tsai has extensive experience in banking and telecommunication services,

as well as the land development, construction management and building leasing

business. He holds a Master of Law Degree (1979) from Georgetown University

and a Bachelor of Law Degree (1978) from the National Taiwan University. Mr. Tsai

is the brother of Ming-Hsing (Richard) Tsai. He became a Director of IBA in

February 2004.

Bachar SAMRA

Executive Director, aged 46. Mr. Samra is Executive Vice President – Consumer

Banking Group of IBA and is responsible for the Bank’s retail banking and credit

card businesses. He is also the Chairman of IBA Credit Limited. He holds a

Bachelor of Science Degree Cum Laude, a Master of Science Degree from the

University of Memphis, U.S.A. and a Master of Business Administration Degree

from DePaul University, U.S.A. He has attended various management programmes

at the University of Maryland, U.S.A. and the Stanford University Executive

programme. Mr. Samra initially worked in the engineering industry in the U.S. and

the Middle East, and subsequently moved into various senior management

positions with a major conglomerate in Bahrain. He joined IBA in 1989. He

became a Director of IBA in April 2000.

Wing-Fai NG

Non-executive Director, aged 36. Mr. Ng joined the Fubon Group in 2000. Mr.

Ng’s extensive experience in the financial and banking sectors can be evidenced in

his previous positions as Managing Director and Head of the Asia-Pacific Financial

Institution Group at Salomon Smith Barney, and prior to that, as Director of

Corporate Finance at UBS Warburg. Currently, Mr. Ng is Senior Executive Vice

President and Chief Strategic Officer of Fubon Financial Holding Co., Ltd. Mr. Ng

holds a Master of Business Administration Degree (1994) from Harvard University

and has a Master of Arts and a Bachelor of Arts Degree (1990) in Economics and

Engineering from Cambridge University. He became a Director of IBA in February

2004.



Victor KUNG

Non-executive Director, aged 47. Mr. Kung joined the Fubon Group in 2000. Mr.

Kung first joined Fubon Insurance Co., Ltd. as a Director and Senior Advisor

before becoming Senior Executive Vice President and Chief Financial Officer of

Fubon Financial Holding Co., Ltd. Prior to this, he was the Executive Vice President

of Walden International Investment Group, specializing in private equity investments,

and an Executive Director at the private equity investment arm of Citicorp Capital

Asia. Mr. Kung holds both a Master of Business Administration in Finance (1988)

and a Master in Economics Degree (1982) from New York University, as well as a

Bachelor of Law (1978) from National Chunghsing University. He became a

Director of IBA in February 2004.

Jesse DING

Non-executive Director, aged 50. Mr. Ding is the President of Taipeibank Co., Ltd.

He has extensive experience in the banking services sector with over 20 years in

the industry. Before his current appointment, Mr. Ding was Executive Vice

President of the China Industrial Bank Preparatory Team, and prior to that he was

President of the Taipei Branch of Chase Manhattan Bank for more than 5 years.

Mr Ding also spent 4 years at Bankers Trust and more than 7 years at Citibank in

various positions. He holds a Master of Business Administration Degree (1979)

from the University of Detroit and a Bachelor of Business Administration Degree

(1975) from National Taiwan University. He became a Director of IBA in February

2004.

Robert James KENRICK

Non-executive Director, aged 56. Mr. Kenrick was a partner of the international

accounting firm KPMG from 1988 to 1998 and a member of the Financial

Accounting Standards Committee of the Hong Kong Society of Accountants from

1992 to 2001. He holds a Master of Arts Degree from Cambridge University and

is a Chartered Accountant. He became a Director of IBA in April 1999.



Moses K. TSANG

Non-executive Director, aged 55. Mr. Tsang is the Chairman and Managing

Partner of Ajia Partners as well as the General Manager and Partner of EC

Investment Services Limited. Prior to that, he was a General Partner of Goldman

Sachs Group and Chairman of Goldman Sachs (Asia) L.L.C., a global investment

bank. After associating with the firm for more than 16 years, Mr. Tsang chose to

retire as a General Partner from the Goldman Sachs Group in October 1994. Mr.

Tsang was a Doctoral Candidate at the University of Chicago (1976). He holds a

MSW degree from the University of lowa (1973) and a BS degree from Minnesota

State University (1972). He became a Non-Executive Director of IBA in February

2004.

Hung SHIH

Non-executive Director, aged 49. Mr. Shih was previously a Consultant at Swiss

Banking Corporation before becoming a full time employee of the firm which

eventually merged with Union Bank of Switzerland in 1998 and was renamed UBS

AG. Afterwards, he became a Managing Director and the China Country head of

UBS AG before his early retirement in 1999. Mr. Shih holds both a Master of

Business Administration Degree (1982) and a Master of Law Degree (1980) from

the University of Michigan, as well as a Bachelor of Law Degree (1976) from

National Taiwan University. He became a Director of IBA in February 2004.



SENIOR MANAGEMENT

Mike M. MURAD

Vice Chairman, Managing Director and Chief Executive Officer

(Please refer to Board of Directors)

Bachar SAMRA

Executive Vice President – Consumer Banking Group

(Please refer to Board of Directors)

Michael K. IPSON

Executive Vice President – Corporate Banking Group, aged 57. Mr. Ipson is

responsible for the Bank’s corporate banking business. He joined IBA in December

1991 after serving as General Manager of Chemical Bank Hong Kong Branch and

Chief Executive of Chemical Asia Limited. Mr. Ipson received his undergraduate

degree from the University of California, Berkeley, and a Master’s Degree in Asian

Studies from Stanford University, as well as conducting doctoral studies at Harvard

University. He also holds a Master of Business Administration Degree from DePaul

University, Chicago, all the institutions being in the United States.

David CHAN Yik Keung

Executive Vice President – Financial Control Group, aged 52. Mr. Chan is the Chief

Financial Officer responsible for the Bank’s accounting, financial control and

strategic planning functions. He is also the Chairman of IBA Securities Limited and

is registered as a dealer and investment adviser under the Securities Ordinance. He

holds a Bachelor of Science Degree in Mathematics from the Imperial College of

Science, Technology and Medicine – University of London and a Master of

Business Administration Degree from DePaul University, U.S.A. He is an Associate

Member of the Institute of Chartered Accountants in England and Wales. Mr.

Chan had over 14 years of experience in accounting and finance prior to joining

IBA in December 1987.

Betty BROW Anh Hoang

Executive Vice President – Investment Banking Group, aged 52. Ms. Brow is

responsible for the Bank’s investment banking business, including securities

brokerage, Ambassador Privileged Banking, unit trusts and insurance businesses.



Ms. Brow initially worked for the U.S. Postal Service in Washington, D.C., then for

the U.S. State Department, serving at embassies in Moscow, U.S.S.R. and Beijing,

P.R.C. Prior to joining IBA in April 1996, Ms. Brow spent over 12 years in

commercial banking and investment banking in senior positions at Chemical Bank

and Bankers Trust Company, Hong Kong. She obtained a Bachelor of Science

Degree, with Honors, and a Master of Business Administration Degree from the

University of Maryland, U.S.A.

Horace FAN Sheung Yam

Executive Vice President and Treasurer, aged 57. Mr. Fan joined IBA in December

2001 as Senior Vice President and Treasurer and was promoted to his current

position in July 2002. Before joining IBA, Mr. Fan worked with Dah Sing Financial

Group for 27 years in various positions at its Treasury Division, becoming a senior

manager in 1987 and serving as General Manager of Treasury for almost a

decade. Mr. Fan currently is the President of ACI-Financial Markets Association of

Hong Kong.

Joe HILI

Executive Vice President – Support Group, aged 51. Mr. Hili is an experienced

professional in banking management and has solid international exposure. He is a

fellow member of the UK Chartered Association of Certified Accountants and the

UK Chartered Institute of Management Accountants in addition to being a

member of the UK Association of Corporate Treasurers and the UK Institute for

the Management of Information Systems. Mr. Hili started his career in an

international audit firm and subsequently joined an international banking group

where he was Group Chief Accountant in the Group’s Head Office, a career that

spanned sixteen years. In 1997 he relocated to Europe where he worked for the

United Nations Food and Agriculture Organization as General Manager of the

Credit Union in Rome.

Francis YEUNG Wai Hung

Senior Vice President and Head of Hire Purchase and Leasing, aged 48. Mr. Yeung

obtained a Master’s Degree in Business Administration from the University of

Aston, England and had over 8 years of experience in hire purchase and leasing

operations with several major foreign banks in Hong Kong before joining IBA in

1989.



Shera LEE Yee Cheung

Senior Vice President and Deputy Head of Consumer Banking, aged 39. Ms. Lee

reports to Mr. Bashar Samra, Executive Vice President for the Consumer Banking

Group. Ms. Lee joined IBA in January 2003 and is primarily responsible for the

bank’s retail banking and consumer finance business. Ms. Lee is an experienced

professional in the banking industry. Prior to joining IBA, she has worked for

several major banks including Chase Manhattan Bank and Hang Seng Bank. Most

recently, she was the General Manager, Head of Retail Banking of Dah Sing Bank.

Ms. Lee obtained a Bachelor of Business Administration and an Executive MBA

Degree from the Chinese University of Hong Kong.

Carmen YIP Ka Man

Senior Vice President and Head of Retail Banking, aged 39, Ms. Yip holds a

Bachelor of Social Science Degree from the University of Hong Kong. She held

management positions in local and foreign banks, gaining expertise in retail

banking, before joining IBA as manager of the Bank’s flagship Central Branch in

January 2000 and subsequently being promoted to Regional Manager and then to

her current position overseeing the branch network.

John NG Chun Kit

Senior Vice President and Head of SME Commercial Lending, aged 53. Mr. Ng

obtained a Bachelor of Social Sciences Degree from the University of Hong Kong

and a Master of Business Administration Degree from The Chinese University of

Hong Kong. Mr. Ng has over 28 years of experience in both local and foreign

corporations. He worked for a major local banking group where he initially served

as the district manager overseeing several branches and then assumed the

position of Head of Credit. In 1996, Mr. Ng was the head of overseas branches

and also the local commercial branches. Mr. Ng joined IBA in May 2003, bringing

substantial experience to the development of IBA’s SME lending business.

Thomas CHAN Wing Kee

First Vice President and Head of Customer Relationship Management, aged 35.

Mr. Chan joined IBA in 1998 and is responsible for the Bank's call center and

customer analytics. Mr. Chan has played a major role in the creation of the Bank's

data warehouse and installation of a Customer Relationship Management system.

Prior to joining IBA, he engaged in database system consulting and credit risk

management. He holds a Bachelor of Science Degree in Electrical Engineering

from Cornell University and a Master of Business Administration Degree (with

Distinction) from New York University.



Ruskin CHOW Ping Leung

First Vice President and Head of Consumer Finance Risk Management, aged 34.

Mr. Chow holds a Bachelor of Science Degree in Engineering (First Class Honours)

from the University of Hong Kong and a Master of Business Administration

Degree from the Hong Kong University of Science and Technology. He has gained

extensive experience in business analysis and credit risk management from

international financial institutions, along with consumer lending and asset

securitization. He joined IBA in 2002.

Judy HO WONG Pik Yuk

First Vice President and Head of Human Resources, aged 40. Mrs. Ho obtained a

Master Business Administration Degree from the University of Strathclyde

(Glasgow). She worked at Astec International Limited, Cathay Pacific Airways and

Motorola Semiconductors prior to joining IBA. She has over 16 years of experience

in Human Resources.

Kai CHIN

Senior Vice President and Head of Corporate Banking, aged 55. Mr. Chin served

six years as a US Navy Officer after graduating from Wabash College, Indiana,

U.S.A. After obtaining his Master’s Degree in International Affairs, Banking and

Finance from Columbia University, he joined Chemical Bank in New York in 1978.

Over the next 17 years he held various positions in the Global Banking Group of

Chemical Bank throughout Asia and in 1988 was seconded to Far East Bank and

Trust Company, Manila as Director and member of the Board . He served as Senior

Vice President and Asia Division Manager at Bank of Hawaii from 1995 to 2001

before joining IBA.

Steven THOMPSON

First Vice President and Financial Analyst, aged 43. Mr. Thompson had 10 years

experience as a securities investment analyst covering the local bank sector before

joining IBA in 1998. He worked at County NatWest and UBS Securities before

joining Nikko Research Centre as its Head of Research. He is primarily responsible

for investor relations, as well as banking industry and market information. He

performs a wide range of studies in his role as financial analyst for the Bank.



Irene CHEUNG Ming Wai

Senior Vice President and Head of Corporate Governance and Compliance

Department, aged 51. Ms. Cheung had 13 years of experience in accounting,

auditing and tax works in Sydney, Hong Kong and PRC companies prior to joining

IBA in 1990. She has worked in various positions in IBA. Ms. Cheung has a

Bachelor’s Degree in Economics from the University of Sydney and Master’s

Degrees in Business Administration from the Hong Kong Open University and

DePaul University, respectively. Ms. Cheung is also a member of the Australian

Society of CPAs and Hong Kong Society of Accountants.

Daisy CHAN Shuk Wah

Chief Internal Auditor, aged 37. Ms Chan obtained a Bachelor of Arts Degree

from the City University of Hong Kong. Ms Chan is a member of the Hong Kong

Society of Accountants. She has over 13 years of experience in bank auditing.

Before joining IBA in 1994, she worked for a major public accounting firm in

Hong Kong.

Ivan YOUNG

Senior Vice President, Company Secretary and Legal Counsel, aged 49. Mr Young

graduated in law from Victoria University, New Zealand and was admitted as a

New Zealand solicitor in 1978. He practised in New Zealand where he was a

partner of a law firm until his arrival in Hong Kong in 1989. He worked with a law

firm in Hong Kong before joining IBA in 1990. Mr Young was also admitted as a

solicitor in England and Wales and in Hong Kong in 1990 and is a member of the

Law Society of Hong Kong. He holds a Master of Business Administration Degree

from DePaul University, U.S.A.

Derek LAM Hui

Senior Vice President and Deputy Head of Financial Control Group, aged 38. Mr.

Lam had 13 years of experience in accounting, auditing, taxation and consultancy

in Australia, Hong Kong, PRC, Indonesia, Philippines and Korea while working for

a major international accountancy firm before joining IBA in 2001. He has a

Bachelor’s Degree in Commerce majoring in Accounting from the University of

New South Wales, Australia and a Master’s Degree in Business Administration

from DePaul University, Chicago. Mr. Lam is also a member of the Institute of

Chartered Accountants in Australia, the Securities Institute of Australia and the

Australian Technical Analysts Association.



Olivia WONG Wai Kiu

First Vice President and Head of Ambassador Privileged Banking, aged 39. Ms

Wong holds a Bachelor of Science Degree from University of New Brunswick,

Canada. Before joining the Bank in September 2003, she worked for various

multinational and local banks and has over 14 years of experience in priority

banking and retail banking management.

Ronald LING Kim Keung

First Vice President and Head of Wealth Management Division, aged 40. Mr. Ling

holds a Master of Business Administration Degree from the University of

Strathclyde, U.K. He has wide exposure in different financial sectors and has

gained extensive experience with various financial institutions including fund

management house, investment bank, commercial bank and brokerage firm.

George KWAN King Chi

Senior Vice President and Head of Operations, aged 54. Mr. Kwan joined IBA in

October 2001. He has over 30 years bank operations and systems experience with

major financial institutions including Bank of Hawaii, Fleet Boston Financial Corp.,

Chase Manhattan Bank and Bank of America. In his banking career, Mr. Kwan has

gained expertise in operating support for retail, corporate and trade finance

activities, technical systems and regulatory reporting.

Davy KWAN Kwok Ki

First Vice President and Head of Strategic Training and Development, aged 47. Mr.

Kwan has a Diploma in Finance from the Chinese University of Hong Kong and a

Master of Business Administration Degree from DePaul University, U.S.A. He has

in-depth knowledge and experience in treasury and money market operations

with several major international banks and financial institutions prior to joining

IBA in 1988. He also has extensive exposure in areas of special projects, operations

and staff training and development with the Bank.



Franklin LAM Siu Ling

Senior Vice President and Head of Corporate and Retail Banking Risk Management,

aged 47. Mr. Lam obtained a Bachelor of Social Sciences Degree from the

University of Hong Kong and a Master of Business Administration Degree from

The Chinese University of Hong Kong. He had over 15 years of commercial

banking experience with several major international banks in Hong Kong and

Canada before joining IBA in 1999.

Frederick FOK Kin Wah

First Vice President and Head of Information Technology, aged 50. Mr. Fok holds a

Bachelor of Science Degree in Computer Science from Pacific Southern University.

He had over 20 years of experience in systems and information technology prior

to joining IBA in 1996. He has extensive exposure in project management and

new systems implementation.

Dick TONG Dick Kwong

Senior Vice President and Head of Nominee Services and Settlement, aged 53. Mr.

Tong holds a Bachelor of Arts Degree from DePaul University, U.S.A. Prior to

joining IBA in 1987, Mr. Tong had more than 10 years managerial experience in

securities and investment field.

Paul AU Chi On

First Vice President and Head of Treasury Marketing and Sales, aged 36. Mr. Au

has over 10 years of experience in treasury, with emphasis in foreign exchange

trading and derivatives. Prior to joining IBA in 2002, he worked in several major

banks including Dah Sing Bank, Fuji Bank, and Royal Bank of Scotland. Mr. Au

holds a Bachelor of Arts Degree in Economics from University of Illinois at Urbana-

Champaign, U.S.A.

Directors’ Statement


HONG KONG AND CHINA ECONOMIES

SARS brought the Hong Kong economy to a halt for almost threemonths in the spring of 2003. Turning to their historical sense ofself–reliance, Hong Kong citizens initiated a recovery in the secondhalf of the year, supported by CEPA and capital inflows attracted bythe growing Chinese economy. China became the engine ofgrowth for the entire region, expanding by 9.1% over 2003despite the slowdown caused by SARS in the second quarter.

When the year of 2003 opened, most observers believed that the slowing U.S.

economy and the growing likelihood of conflict in Iraq would have the greatest

influence on Hong Kong, stifling growth in the export sector and further delaying

a revival of domestic consumption. While both factors did indeed materialize, they

were far outweighed by the impact of the outbreak of Severe Acute Respiratory

Syndrome, or SARS, a form of atypical pneumonia that swept through China,

Taiwan and Hong Kong, with lesser effects in Singapore, Vietnam and Canada.

The first signs of SARS appeared in late February, but really struck with ferocity in

March. Following the outbreak in the Prince of Wales Hospital early that month,

the community and the economy suffered severe damage. Thousands of people

were quarantined at home after being exposed to SARS victims. Streets, shopping

malls, restaurants and theaters were deserted, with 300 people succumbing

before the epidemic was declared over in June. There are few words to describe

the fear and uncertainty that Hong Kong people faced over the five-month

period. Aircraft arrivals fell by 75%, passenger loads plummeted to below 30%,

hotel occupancy dropped to 10%, and retail sales fell 14% in April at the height

of the outbreak.

Unemployment jumped, reaching 8.6% for the April-June period. Personal

bankruptcies continued at high levels, after having surged from 9,151 in 2001 to

25,328 in 2002; in the first half of 2003 they jumped to 15,665, easing in the

second half to 9,257 for a full year total of 24,922. Both consumer and corporate

loan demand evaporated. Between January and September, lending fell by 3%.

SARS effectively halted property sales, and the sharply reduced transactions

reflected distress sales, forcing property prices down. Residential prices, which had

already declined 65% from their peak in October 1997, suffered a 7-8% decline

in the second quarter alone.

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QoQ% change



In the midst of all of these difficulties, the people of Hong Kong responded with

the spirit that has been the hallmark of Hong Kong’s success over the years.

Facing the mystery of SARS, citizens quickly addressed environmental issues, and

the medical profession was magnificent in caring for the victims of this frightening

disease. A realization that Hong Kong’s fate would be determined by individual

efforts gave rise to a growing sense of confidence. Confidence was further fueled

by the signing of the Closer Economic Participation Agreement (“CEPA”), a series

of measures giving Hong Kong incorporated companies greater access to business

opportunities in China. This helped to attract new foreign investment to Hong

Kong, both as direct and portfolio investment, as overseas investors sought to

gain a share in China’s remarkable growth through the Hong Kong door.

Growing confidence and capital inflows helped initiate a revival in the second half

of the year. Unemployment fell to 7.3% by the end of December. The Hang Seng

Index rose to 12,594 in mid-December from its low point of 8,409 in April. 29

IPOs were launched between June and December. GDP expanded by 3.3% in

2003. Although the Consumer Price Index continued to decline year on year for

the full 12 months of 2003, prices in December were higher than those in

November, holding out the prospect of an end to deflation which had run 62

consecutive months since late 1998.

The Chinese economy, after growing at a 9.6% rate in the first quarter of 2003,

slowed momentarily as a result of SARS, but then came roaring back. Full year

GDP growth reached 9.1%, the highest rate since 1997. Exports increased 35%

to US$438 billion, while imports rose 40% to US$413 billion. Foreign direct

investment flowing into China totaled US$53.5 billion. China was the engine that

not only drove Hong Kong recovery, but also led all of Asia upward.

The CEPA agreements are an effort by the Chinese Central Government to spark

renewed growth in Hong Kong. They allow Hong Kong incorporated companies

to enter the China market on favorable terms. As an example, Hong Kong banks

can qualify to open a branch once they have total assets of US$6 billion, while

banks incorporated elsewhere must have US$20 billion in assets. China also

loosened restrictions on tourist travel to Hong Kong. Previously, all tourists had to

join official tour groups. Over 2003, residents first from Guangdong Province,

then from a growing number of major cities, were permitted to cross into Hong

Kong on individual visas. As a result, the number of Chinese tourists visiting Hong

Kong in 2003 comprised 54% of total tourists and rose to 8.5 million. This

Jun-

97

Dec

-97

Jun-

98

Dec

-98

Dec

-99

Jan-

00

Jun-

00

Dec

-00

Jun-

01

Dec

-01

Jun-

02

Dec

-02

Jun-

03

Dec

-03

-8

-6

-4

-2

0

2

4

6

8

YoY% change

8,000

8,500

9,000

9,500

10,000

10,500

11,000

11,500

12,000

12,500

13,000

Jan-

03

Feb-

03

Mar

-03

Apr

-03

May

-03

Jun-

03

Jul-0

3

Aug

-03

Sep-

03

Oct

-03

Nov

-03

Dec

-03

Consumer Price Index

Hang Seng Index



contributed to the 5% rise in retail sales in the fourth quarter in Hong Kong as the

visitors took advantage of the range of selection and attractive prices.

As Hong Kong entered 2004, there was a greater sense of optimism than has

prevailed at any time since 1997. While government finance remained a problem,

with the deficit for the fiscal year 2003-2004 standing at HK$49 billion, the

private sector seemed to be energized. China continued to enjoy strong growth in

the early days of 2004, providing further momentum for Hong Kong.

IBA PERFORMANCE

The first half of 2003 provided an extremely unfavorableenvironment. Banks suffered from a loss of loan demand,continuing bankruptcies, and a sharp fall in the value ofrepossessed assets. Although signs of recovery emerged in thesecond half of the year, revenues still suffered in a year on yearcomparison. IBA focused on banking fundamentals to mitigate theeffect of these economic forces and to position itself for economicrecovery. IBA focused on further strengthening its balance sheetduring 2003. Although loans declined during the first months ofthe year, growth was achieved in the second half. Throughpromotion of the pacesetting Magic Money Manager account, aninterest bearing demand deposit, IBA’s deposit base expandeddramatically, with the proportion of low cost deposits jumpingfrom 18% in December 2002 to 34% in December 2003. Theintroduction of attractive new investment products helped increasefee income, and the implementation of more advanced riskmanagement systems cut bad debt provisions by half. Anotherstrong year in realizing gains on investment securities helped offsetthe impact of SARS and provisions for decline in repossessedproperties. The success in focus on fundamental banking practicesresulted in a strong second half performance, and positioned thebank for economic expansion in 2004.

Profit attributable to shareholders for the twelve months ending 31 December

2003 was HK$138 million, with net profit in the second half of the year increased

by 64% compared to the first half of 2003. This compares to net profit of HK$220

million in 2002.

0

0.5

1.0

1.5

2.0

2.5

Jan-

02Fe

b-02

Mar

-02

Apr

-02

May

-02

Jun-

02Ju

l-02

Aug

-02

Sep-

02O

ct-0

2N

ov-0

2D

ec-0

2Ja

n-03

Feb-

03M

ar-0

3A

pr-0

3M

ay-0

3

Jul-0

3Ju

n-03

Aug

-03

Sep-

03O

ct-0

3N

ov-0

3D

ec-0

3

(%)

3-month HIBOR

0

55

65

70

75

80

Jan-

02Fe

b-02

Mar

-02

Apr

-02

May

-02

Jun-

02Ju

l-02

Aug

-02

Sep-

02O

ct-0

2N

ov-0

2D

ec-0

2Ja

n-03

Feb-

03M

ar-0

3A

pr-0

3M

ay-0

3

Jul-0

3Ju

n-03

Aug

-03

Sep-

03O

ct-0

3N

ov-0

3D

ec-0

3

Mass Residential Property Index



Net interest income of HK$604 million declined 14% year on year due to lower

average loan outstandings, the HK$7.6 billion increase in customer deposits and

certificates of deposit outstanding, and the overall decline in interest rates -

3-month Hibor declined from 1.48% in December 2002 to 0.15% in December

2003. System wide, loans declined 2% during 2003, reflecting the weak economy

and the heavy impact of SARS. IBA achieved strong performance in the second

half of the year, offsetting some of the negative factors. Excellent growth in low

cost deposits helped offset margin pressure.

Other operating income of HK$202 million was up 16% year on year, and

comprised 25% of total operating income of HK$806 million, compared to 20%

of operating income in 2002. The increase was driven by the introduction of new

investment products, such as Equity Linked Deposits and Currency Linked Notes,

along with the opening of new Wealth Management Centers in North Point,

Kwun Tong and Tuen Mun, as well as a new Superbranch in Mongkok. The

introduction of new products specifically designed to meet retail investors needs

helped strengthen the customer base among middle-income families.

Operating expenses rose by 7% to HK$489 million. New branches and Wealth

Management Centers, along with additional resources in Treasury and in risk

management, contributed to the increase. Costs associated with the potential sale

of IBA, following the announcement in December 2002 that Arab Banking

Corporation (B.S.C.) (“ABC”) would entertain offers, were also incurred and

reflected in the 2003 accounts.

Charges for bad and doubtful debts were reduced by 45% to HK$187 million as

new risk management systems and procedures substantially improved the quality

of the consumer loan portfolio and economic conditions improved in the second

half. Automation of application processing and a revised scoring methodology

both reduced the number of existing accounts that became delinquent, and

produced new accounts that have been trouble free. IBA made prudent provisions

for the decline in the value of repossessed assets, adjusting the valuation on a

quarterly basis according to changes in the property market. The provision for

2003 was HK$71 million, doubling the provision for 2002, reflecting the impact of

SARS in the second quarter of the year. However, the provision in the second half

declined 85% to HK$9 million, as property prices stabilized.

Operating profit after provisions but before gains on the investment portfolio

increased 14% year on year to HK$59 million, showing the combined effect of

Tuen Mun and Kwun Tong Wealth

Management Center Opening

Ceremonies



gains in non-interest income and the sharp reduction of loan loss provisions.

Although gains on the securities portfolio declined 47% to HK$91 million, this

was a very credible performance during a period of extremely low interest rates.

An increase in taxation from HK$1.4 million in 2002 to HK$11.6 million in 2003

produced a bottom line of HK$138 million for the year, a 37% decline from 2002.

Total assets rose 17% to HK$37.9 billion. After two years of gradual decline, loan

growth was restored, with a $605 million increase to HK$15.6 billion. Growth

came in residential mortgages, commercial loans and hire purchase contracts,

offset by declines in consumer and syndicated loans. While IBA maintained very

high liquidity (59% compared to 50% in 2002), and had cash and short term

funds of HK$7.2 billion at year-end, the investment portfolio rose to HK$10.7

billion as of December 31, 2003. The portfolio is comprised of Hong Kong

Exchange Fund paper, U.S. Treasuries, bank certificates of deposit and a small

portion of high-grade corporate bonds.

IBA had great success in attracting new customer deposits, generated by the

Magic Money Manager account, an interest bearing current account which meets

customer needs. Total customer deposits grew HK$7.6 billion to HK$30.4 billion,

of which HK$1.7 billion is comprised of callable certificates of deposit subscribed

to by retail customers. Low cost deposits, including the Magic Money Manager

account, checking and savings accounts and call accounts, rose to 34% of total

customer deposits, up from 18% at the end of 2002.

Shareholder funds stood at HK$3.8 billion as of 31 December 2003.

During 2003 IBA expanded its branch network to 25, opening the fifth

Superbranch in Mongkok. A new branch in Sheung Wan on Hong Kong Island

will open in March 2004. The number of Wealth Management Centers increased

to 10. New treasury systems linking the head office to branches and our

partnership with iMarkets, which provides pricing and transaction processing for

derivatives markets, enable IBA to deliver online quotations and completion of

orders to customers throughout Hong Kong.

IBA has accelerated the transition from a traditional retail bankorganized along business lines to an integrated, customer-centricinstitution. Product design, delivery channels, relationshipresponsibility and risk management are incorporated in a

New Kowloon Main Branch (Mongkok)

Strategic Planning Conference



continuously linked process, with key committees acting as thenodes in this chain. Semi-annual planning conferences bringtogether representatives from every area of the bank to analyzekey issues and develop a comprehensive approach. Expanding thecustomer base, developing new products and services, addingdelivery channels and integrating product expertise with customerrelationship management reinforced IBA’s franchise.

Over the past five years the outlook of Hong Kong consumers and corporations

has changed dramatically. They seek much more diversity in financial services.

While continuing to expect traditional offerings from their bank, they want

greater choice in the deployment and protection of their liquid assets, and more

flexibility in obtaining funding. IBA has steadily developed both new products and

enhanced delivery channels to meet these needs.

Prior to 2001, individuals and corporations had to maintain current accounts to

meet operating requirements, and savings and fixed deposit accounts to invest

surplus funds. With the elimination of statutory regulations on interest rates, IBA

introduced the Magic Money Manager, or 3M, account, an interest bearing

current account that meets both needs. The 3M account has gained widespread

acceptance from consumers, and more recently from commercial clients. With

new features being continuously added based on the research of Bank Product

Development and Marketing, the Retail Banking, Investment Banking and

Corporate Banking divisions have attracted HK$5.6 billion in new 3M deposits

over the course of 2003, increasing low cost funds (current, savings and call

accounts) from 18% of total customer deposits in 2002 to 34% in 2003. IBA’s

automated Call Center has carried out telemarketing programs to invite additional

subscribers to the 3M account, and has also advised 3M account holders of other

offerings of the bank. By utilizing demographic data from the data warehouse

that is linked to the Call Center, these programs have been highly focused,

achieving higher levels of efficiency and avoiding calls that are extraneous to

customer interests.

Small and medium size enterprises, the backbone of the Hong Kong economy,

have opened many of the 3M accounts. IBA meets SME requirements through

two business units, IBA Credit and the SME Unit. IBA Credit is the hire purchase

and leasing subsidiary of the bank, and has established a leading position in the

market. Over the past 15 years IBA Credit has gained expertise in a wide range of

equipment and vehicle financing. This was a high growth area in 2003, providing

high quality revenues at attractive yields. The SME Unit is part of the Retail

Retail Products



Banking Division, and is staffed by commercial lending specialists with experience

in meeting the needs of businessmen. The SME Unit works closely with the

Operations Division, and especially the Bills Department, to provide customized

services to their clients, who require speedy and dependable service.

Retail Banking collaborates closely with Investment Banking and Treasury to

package and deliver a wide range of investment products to our consumer clients.

Product development has been centralized in the Treasury Division, with its

extensive financial market relationships, enabling IBA to draw on expertise of

investment banks to add special features and hence improve the return to our

customers. These products are offered both through branches and our Wealth

Management Centers. The Strategic Training and Development Department

provides the training for frontline staff to ensure that they understand all features

of the products before offering them to clients. In compliance with the Securities

and Futures Ordinance, only qualified staff offer specialized products.

During 2003 these investment products included callable step-up certificates of

deposit, equity linked deposits and notes, currency linked deposits and notes,

target redemption notes, unit trusts, unit linked insurance products and full life

products. With low prevailing rates on most deposits in the Hong Kong market,

purchases of corporate and government bonds proved popular, and IBA was

active in both the primary and secondary market, acting as agent for Hong Kong

Mortgage Corporation and Hong Kong Mass Transit Corporation bonds as well as

corporate issues.

The IBA Treasury Division is a Market Maker in Hong Kong Exchange Fund bills

and notes, and is therefore active in both the primary and secondary market for

these instruments. This has enhanced the capabilities of Treasury, which in

addition to retail investment product development, is also responsible for

management of cash flows, deposit rates and the securities portfolio under the

guidance of the Asset and Liability Committee and the Investment Committee.

The transformation of Treasury over the past two years has added substantially to

our customer base and our sources of non-interest income, as well as improving

the return on surplus deposits, which have now reached more than HK$14.6

billion.

IBA, along with other retail banks in Hong Kong, plays a key role in making home

ownership possible for Hong Kong citizens. With regular monthly payments and

reassignments, the mortgage portfolio can run off rapidly. During 2003 we

Treasury Dealing Room

Wealth Management Services



expanded our offerings in mortgage financing, and had a net increase in

outstandings, providing a steady source of interest income, as well as new

customers to whom we offer other consumer products.

Hong Kong banks encountered a high rate of defaults on credit card lending

beginning in late 2001 and continuing into 2002 and 2003. IBA installed new risk

management systems with predictive capabilities, enabling us to proactively

manage the portfolio and to offer risk-adjusted pricing to customers. With the

new price setting mechanism, customers with good credit records no longer

subsidize delinquent accounts, and the bank makes more accurate credit

judgments. This risk analysis and pricing mechanism has been expanded to include

personal loans and consumer leasing. Through utilization of this information, the

bank carried out pre-emptive restructuring of the credit card portfolio. While this

reduced outstanding advances, it also reduced specific provisions by almost

HK$127 million.

The Consumer Credit Risk Management Unit, the Corporate and Retail Banking

Risk Management Unit, the Treasury Risk Management Unit and the Operations

Division, along with the Internal Control Unit and Corporate Governance and

Compliance Unit comprise the membership of the Risk Management Committee,

which reviews methodologies and performance, and confirms compliance with all

risk management guidelines. The committee has also initiated steps to introduce

new approaches outlined in Basle II proposals.

The Corporate Banking Division added new officers and expanded lending

selectively during the year. The client base extends from SME relationships,

established prior to the introduction of the new SME Unit, to second-tier listed

companies, and a handful of premier companies that have been clients of IBA for

many years. Adopting the same customer-centric approach as all other divisions,

Corporate Banking works closely with Treasury, Retail Banking and Investment

Banking, as well as IBA Credit, to ensure that IBA meets all customer needs. With

sharp currency swings in the latter part of 2003, advice from Treasury solidified

our relationship with clients.

Creating a customer-centric culture in the bank has strengthened the franchise,

gaining IBA a reputation for high quality products and personalized services. It has

been important to expand the delivery channels to ensure that the franchise

continues to grow. We added a Superbranch in Mongkok to supplement the

existing Mongkok Branch, which had already reached the saturation point, raising

Customers trading at Wealth Management

Center

IBA myCard



the number of branches to 25. Wealth Management Centers provide our

customers with specialized services for stock brokerage, bond purchase and sales,

unit trust investments and insurance products in a comfortable setting with on-

line access to market information. New WMCs were opened in North Point, Kwun

Tong and Tuen Mun in 2003.

Our Call Center staff has gained valuable experience in the application of

technology and exploitation of the data warehouse. Monthly call volume has

increased by 50%, and the variety of telemarketing programs has also grown.

Each business unit is able to plan special promotions with the Call Center to focus

on its particular client base. This has proven to be an increasingly valuable delivery

channel.

IBA regards integrity as our priority, promoting this among all of our staff. The

Corporate Governance and Compliance Unit plays a key role in ensuring that all

staff are properly briefed on the Code of Conduct, all the numerous regulations

that govern our business, and the internal policies approved by the Board of

Directors. Working in association with the Internal Control Unit, Corporate

Governance and Compliance clarifies new announcements from regulators and

disseminates the information to staff. Their objective is to have staff internalize

standards, and thus prevent errors and lapses of judgment from occurring. Their

staff participate in product development discussions from the initial stage to

ensure that all features are in accord with the Securities and Futures Ordinance,

and work with the Strategic Training and Development staff to design the

requisite training for the new products before the launch of the product.

The bank also understands its role in the community. In addition to the traditional

support for families through home financing and banking services, as well as

support of community service organizations, IBA has maintained its Regional

Advisory Council since 1998. Community leaders from all walks of life serve as

advisors to individual branches, and meet as a group with senior management

once a quarter to exchange views on bank performance, service quality and needs

of customers. This ensures that IBA is always in touch with the neighborhoods

that it serves.

On 8 September 2003 Fubon Financial Holding Co., Ltd. (“Fubon Financial”) and

IBA jointly announced that, subject to the satisfaction of certain pre-conditions

(such as relevant regulatory approvals being obtained), Fubon Financial would

make a voluntary conditional cash offer to acquire the whole of the issued share

2003 Regional Advisory Council

Fubon Bank Building



capital of IBA. ABC on the same day irrevocably undertook to accept such offer if

made by Fubon Financial in respect of all of its 55% shareholding in IBA. After the

pre-conditions were met, Fubon Financial made the voluntary conditional cash

offer on 16 February 2004 and ABC tendered their acceptance in respect of all of

their 55% shareholding in IBA on the same day. The offer closed on 8 March

2004, with Fubon Financial acquiring in aggregate 75.08% of the issued share

capital of IBA. Fubon Financial will place the 0.08% of shares to independent

parties to retain IBA’s listed status.

ABC, based in Bahrain, has embarked on an expansion in the Middle East. In order

to generate the capital to fund that expansion, ABC examined several alternatives,

one of which involved the sale of subsidiaries outside of the home region. In 2002

ABC engaged BNP Paribas as a financial advisor to assist in the sale of IBA. In

December 2002 ABC publicly announced that they would entertain offers that

represented a fair price for the retail franchise built up by IBA over the past 15

years. Several institutions expressed their interest and conducted the due diligence

process. Fubon Financial was selected because of the price, terms of the contract,

and their capability of continuing to make the contributions to the community

that IBA has performed in Hong Kong.

Fubon Financial provides a comprehensive range of financial products and

services, including commercial banking, non-life and life insurance, securities

brokerage, asset management and investment banking services, with more than 7

million customers served through a network of more than 330 bank branches and

9,000 sales and marketing representatives. As at 31 December 2003 Fubon

Financial had shareholder funds of approximately US$4.4 billion and total assets

of US$37.5 billion. It began as a property and casualty insurance company in

1961, and subsequently expanded to include securities brokerage, life insurance

and banking. The holding company was established in December 2001.

Former President George Bush paid his third visit to IBA in October. President Bush

met with students and graduates of the IBA-DePaul programs, discussing world

affairs, education, citizenship and community values. The President is an

enthusiastic supporter of the IBA-DePaul educational partnership which has

allowed over 100 of our staff to earn BA and MBA degrees. After lunching with

government officials, business leaders and IBA directors, Mr. Bush addressed 250

corporate guests and IBA staff at a dinner, speaking on global issues, American

politics, the importance of China-U.S. relations and the potential of Hong Kong.

Mike M Murad

Vice Chairman, Managing Director and Chief Executive Officer

19 March 2004

IBA Senior Management

President George Bush visits IBA

Directors’ Report


The directors have pleasure in presenting their report together with the audited financial statements of International Bank of

Asia Limited (“the Bank”) and its subsidiaries (collectively “the Group”) for the year ended 31 December 2003.

Principal activities

The Bank, through its branches and subsidiaries, provides a range of banking, financial and related services.

Subsidiaries

Particulars of the Bank’s principal subsidiaries at 31 December 2003 are set out in Note 24 to the financial statements.

Compliance

The Bank has complied throughout the year with the Code of Best Practice as set out by the Stock Exchange of Hong Kong

Limited in Appendix 14 to the Listing Rules.

In addition, the financial statements on pages 30 to 110 together with the unaudited supplementary financial information on

pages 111 to 133 fully comply with the Supervisory Policy Manual “Financial Disclosure by Locally Incorporated Authorised

Institutions” issued by the Hong Kong Monetary Authority (“HKMA”).

Results and Appropriations

The result of the Group for the year ended 31 December 2003 is set out in the consolidated income statement on page 30. The

state of the Bank's and Group's affairs as at 31 December 2003 are set out in the financial statements on pages 30 to 110.

During the year the Bank paid an interim dividend of 4.00 Hong Kong cents per ordinary share, totalling HK$46,886,400

(2002: 4.00 Hong Kong cents, HK$46,886,400). A Board resolution was passed on 19 December 2003 to declare a special

interim dividend for 2003 of HK$0.26 per share subject to the satisfaction (or, if applicable, waiver) of the Relevant Pre-

Conditions (as referred to in the Bank and Fubon Financial Holding Co. Ltd.’s joint announcement dated 6 December 2003).

This special interim dividend is not recognised as a dividend payable in these financial statements as, at the balance sheet

date, it was subject to the satisfaction or waiver of the Relevant Pre-Conditions.

On 10 February 2004, these Pre-Conditions were satisfied and the special interim dividend was paid on 16 February 2004. In

view of this special interim dividend, the Directors do not recommend the payment of a final dividend in respect of the year

ended 31 December 2003 (2002: 8.00 Hong Kong cents, HK$93,772,800).

Directors’ Report


Directors

The directors in office during the financial year were:

Dr. Anwar Ali Al-Mudhaf (Resigned on 8 March 2004)

Mike M. Murad

Poon Kwok Lim, Steven (Resigned on 8 March 2004)

Robert James Kenrick

So Yiu Cho, James (Resigned on 8 March 2004)

Eissa M. Al Suwaidi (Resigned on 16 February 2004)

Guo You (Resigned on 8 March 2004)

Bachar Samra

Khalifa M. Al Kindi (Resigned on 16 February 2004)

Zhou Liqun (Resigned on 8 March 2004)

The following directors were appointed after the end of the financial year:

Ming-Hsing (Richard) Tsai (Appointed on 16 February 2004)

Ming-Chung (Daniel) Tsai (Appointed on 16 February 2004)

Moses Tsang (Appointed on 16 February 2004)

Hung Shih (Appointed on 16 February 2004)

Wing-Fai Ng (Appointed on 16 February 2004)

Victor Kung (Appointed on 16 February 2004)

Jesse Ding (Appointed on 16 February 2004)

Re-election of Directors in the forthcoming Annual General Meeting

In accordance with Article 77 of the Bank’s Articles of Association, Ming-Hsing (Richard) Tsai, Ming-Chung (Daniel) Tsai,

Wing-Fai Ng, Victor Kung, Jesse Ding, Moses Tsang and Hung Shih will hold office until the 2004 Annual General Meeting

and being eligible, be recommended for re-election at the 2004 Annual General Meeting.

Directors’ interests in shares

None of the directors has any interest in, or rights to subscribe for, the share capital of the Bank or any associated corporation.

At no time during the year was the Bank, any of its holding company, subsidiaries or fellow subsidiaries a party to any

arrangements to enable the directors or chief executive of the Bank, or any of their spouses or children under eighteen years

of age, to acquire benefits by means of the acquisition of shares in, or debentures of the Bank, or any other body corporate.

Directors’ Report


Directors’ service contracts

The non-executive directors were appointed by the Bank’s shareholders at the Annual General Meeting with appointment

terms in accordance with Article 77 and Article 81 of the Bank’s Articles of Association. Their remuneration is determined

annually by the Bank’s shareholders at the Annual General Meeting.

No director proposed for re-election at the forthcoming Annual General Meeting has an unexpired service contract with the

Bank which is not determinable by the Bank or any of its subsidiaries within one year without payment of compensation,

other than normal statutory obligations.

Directors’ interests in contracts

No contract of significance in relation to the Bank’s business to which the Bank, its holding company, subsidiaries or fellow

subsidiaries was a party and in which the directors of the Bank had a material interest, whether directly or indirectly, subsisted

at the end of the year or at any time during the year.

Substantial shareholders

At 31 December 2003, the register of substantial shareholders showed that the Bank had been notified of the following

interests, being 10% or more of the Bank’s issued share capital.

Percentage

Ordinary shares of of total

HK$1 each shareholding

Arab Banking Corporation (B.S.C.) (“ABC”) 644,688,000 55

Tendai Limited (wholly owned subsidiary of China Everbright Limited) 234,432,000 20

On 16 February 2004, Fubon Financial Holding Co., Ltd. (“Fubon Financial”) made a general offer for the whole of the Bank’s

issued share capital. ABC accepted the offer on the same day for all of its 55% shareholding in the bank. As a result, Fubon

Financial became the holding company of the Bank.

Prior to the close of the general offer on 8 March 2004, Tendai Limited also accepted Fubon Financial’s offer in respect of its

20% shareholding in the Bank.

Directors’ Report


Purchase, sale or redemption of shares

The Bank has not redeemed any of its shares during the year. Neither the Bank nor any of its subsidiaries has purchased or

sold any of the Bank’s shares during the year.

Fixed Assets

Movements in fixed assets of the Bank and the Group are set out in Note 25 to the financial statements.

Donations

The Group made no donation for charitable purposes during the year (2002: HK$34,000).

Audit committee

The audit committee comprises three non-executive directors, a majority of whom are independent, and is a committee of

the Board of Directors. The audit committee oversees the work of the Group’s internal auditors and thereby monitors the

effectiveness of the Group’s internal control systems and compliance with policies approved by the Board of Directors and the

requirements of the regulatory authorities. The audit committee meets regularly with the Group’s external auditors and

reviews the Group’s financial reports prior to approval by the Board of Directors.

Auditors

The financial statements have been audited by KPMG who retire and, being eligible, offer themselves for re-appointment. A

resolution for the re-appointment of KPMG as auditors of the Bank is to be proposed at the forthcoming Annual General

Meeting.

On behalf of the Board,

Ming-Hsing (Richard) Tsai

Chairman

Hong Kong, 19 March 2004

auditors’ report


TO THE SHAREHOLDERS OFINTERNATIONAL BANK OF ASIA LIMITED(incorporated in Hong Kong with limited liability)

We have audited the financial statements on pages 30 to 110 which have been prepared in accordance with accounting

principles generally accepted in Hong Kong.

Respective responsibilities of directors and auditors

The Hong Kong Companies Ordinance requires the directors to prepare financial statements which give a true and fair view.

In preparing financial statements which give a true and fair view it is fundamental that appropriate accounting policies are

selected and applied consistently, that judgements and estimates are made which are prudent and reasonable and that the

reasons for any significant departure from applicable accounting standards are stated.

It is our responsibility to form an independent opinion, based on our audit, on those financial statements and to report our

opinion solely to you, as a body, in accordance with section 141 of the Hong Kong Companies Ordinance, and for no other

purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report.

Basis of opinion

We conducted our audit in accordance with Statements of Auditing Standards issued by the Hong Kong Society of

Accountants. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the

financial statements. It also includes an assessment of the significant estimates and judgements made by the directors in the

preparation of the financial statements, and of whether the accounting policies are appropriate to the Bank’s and the Group’s

circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in

order to provide us with sufficient evidence to give reasonable assurance as to whether the financial statements are free from

material misstatement. In forming our opinion we also evaluated the overall adequacy of the presentation of information in

the financial statements. We believe that our audit provides a reasonable basis for our opinion.

Opinion

In our opinion, the financial statements give a true and fair view of the state of affairs of the Bank and of the Group as at 31

December 2003 and of the Group’s profit and cash flows for the year then ended and have been properly prepared in

accordance with the Hong Kong Companies Ordinance.

KPMG

Certified Public Accountants

Hong Kong, 19 March 2004


Consolidated Income Statement綜合收益表

截至二零零三年十二月三十一日止年度For the year ended 31 December 2003

二零零三年二零零二年（重報）

2003 2002 (Restated)

附註千港元千港元

Notes HK$’000 HK$’000

利息收入 Interest income 4 947,786 1,107,708

利息支出 Interest expense (343,872) (401,986)

利息收入淨額 Net interest income 603,914 705,722

其他營運收入 Other operating income 5 201,927 173,894

營運收入 Operating income 805,841 879,616

營運支出 Operating expenses 6 (488,844) (456,865)

撥備及收益前經營溢利 Operating profit before provisions

and gains 316,997 422,751

壞帳及呆帳準備金調撥 Charge for bad and doubtful debts 9 (186,713) (338,975)

投資及根據貸款協議所 Provision for investments and assets

得資產之撥備 acquired under lending agreements 10 (71,463) (32,263)

撥備總額 Total provisions (258,176) (371,238)

撥備後經營溢利 Operating profit after provisions 58,821 51,513

出售非持作買賣 Gains less losses from disposal

用途之證券收益減虧損 of non-trading securities 11 90,896 170,355

除稅前溢利 Profit before taxation 149,717 221,868

所得稅 Income tax 12 (11,579) (1,424)

股東應佔溢利 Profit attributable to shareholders 15 138,138 220,444

股息宣派及建議 Dividends declared and proposed

年內宣派中期股息 Interim dividend declared during the year 13 (46,886) (46,886)

年內宣派特別股息 Special dividend declared during the year 13 (304,762) 0

結算日後建議末期股息 Final dividend proposed after

the balance sheet date 13 0 (93,773)

(351,648) (140,659)

每股盈利（香港仙） Earnings per share (Hong Kong cents) 14 11.78 18.81

載於第36頁至第110頁之帳目附註為本財務報告之一部份。

The notes on pages 36 to 110 form part of these financial statements.


Consolidated Balance Sheet綜合資產負債表

二零零三年十二月三十一日As at 31 December 2003

二零零三年二零零二年十二月十二月

三十一日三十一日（重報）As at As at

31 December 31 December2003 2002 (Restated)

附註千港元千港元Notes HK$’000 HK$’000

資產 ASSETS現金 Cash on hand 82,367 91,511短期資金 Short term funds 17 7,101,061 12,116,538一至十二個月到期 Placements with banks maturing between之銀行同業放款 one and twelve months 18 1,525,929 735,030

貿易票據減準備 Trade bills less reserves and certificates及存款證 of deposit 19 392,037 291,220

客戶貸款減準備 Advances to customers less reserves 20 15,566,432 14,961,429應計利息及其他帳目 Accrued interest and other accounts 21 1,266,361 1,063,557證券投資 Investments in securities 22 10,721,335 1,788,328聯營公司投資 Investment in associated company 23 8,947 9,874固定資產 Fixed assets 25 1,224,339 1,256,447

37,888,808 32,313,934

負債 LIABILITIES銀行同業及其他金融機構 Deposits and balances of banks and之存款及結餘 other financial institutions 26 475,435 330,369

客戶存款 Deposits from customers 27 28,796,419 22,070,807已發行存款證 Certificates of deposit issued 28 2,651,647 1,810,494外匯基金票據短期倉盤 Short position in Exchange Fund Bills 1,577,568 4,094,931其他帳目及負債 Other accounts and liabilities 21 603,568 239,949

34,104,637 28,546,550

資本來源 CAPITAL RESOURCES股本 Share capital 29 1,172,160 1,172,160股份溢價 Share premium 30 749,778 749,778儲備 Reserves 31 1,862,233 1,845,446

3,784,171 3,767,384

37,888,808 32,313,934

經董事會於二零零四年三月十九日通過及授權頒佈。Approved and authorised for issue by the Board of Directors on 19 March 2004.

蔡明興甘禮傑龔天行主席董事董事

Ming-Hsing (Richard) Tsai Robert James Kenrick Victor KungChairman Director Director

載於第36頁至第110頁之帳目附註為本財務報告之一部份。The notes on pages 36 to 110 form part of these financial statements.


Balance Sheet資產負債表

二零零三年十二月三十一日As at 31 December 2003


三十一日三十一日（重報）As at As at

31 December 31 December2003 2002 (Restated)

附註千港元千港元Notes HK$’000 HK$’000

資產 ASSETS現金 Cash on hand 82,366 91,503短期資金 Short term funds 17 7,100,711 12,116,030一至十二個月到期 Placements with banks maturing between one之銀行同業放款 and twelve months 18 1,525,929 735,030貿易票據減準備 Trade bills less reserves and certificates及存款證 of deposit 19 392,037 291,220客戶貸款減準備 Advances to customers less reserves 20 13,145,306 12,629,012應計利息及其他帳目 Accrued interest and other accounts 21 1,117,704 1,002,279證券投資 Investments in securities 22 10,721,216 1,788,142聯營公司投資 Investment in associated company 23 8,947 9,874附屬公司投資 Investments in subsidiaries 24 118,505 87,146應收附屬公司款項 Due from subsidiaries 2,179,334 2,165,911固定資產 Fixed assets 25 1,189,835 1,221,451

37,581,890 32,137,598

負債 LIABILITIES銀行同業及其他金融機構 Deposits and balances of banks and　之存款及結餘 other financial institutions 26 475,435 330,369客戶存款 Deposits from customers 27 27,724,229 21,106,230已發行存款證 Certificates of deposit issued 28 2,651,647 1,810,494外匯基金票據短期倉盤 Short position in Exchange Fund Bills 1,577,568 4,094,931其他帳目及負債 Other accounts and liabilities 21 455,927 197,727應付附屬公司款項 Due to subsidiaries 1,211,125 1,126,797

34,095,931 28,666,548

資本來源 CAPITAL RESOURCES股本 Share capital 29 1,172,160 1,172,160股份溢價 Share premium 30 749,778 749,778儲備 Reserves 31 1,564,021 1,549,112

3,485,959 3,471,050

37,581,890 32,137,598

經董事會於二零零四年三月十九日通過及授權頒佈。Approved and authorised for issue by the Board of Directors on 19 March 2004.

蔡明興甘禮傑龔天行Ming-Hsing (Richard) Tsai Robert James Kenrick Victor Kung

主席董事董事Chairman Director Director

載於第36頁至第110頁之財務報告附註為本帳目之一部份。The notes on pages 36 to 110 form part of these financial statements.


Consolidated Statement of Changes in Equity股本變動之綜合報告表


本集團

The Group

二零零三年二零零二年

十二月十二月

三十一日三十一日

（重報）

31 December 31 December

2003 2002

(Restated)

附註千港元千港元

Notes HK$’000 HK$’000

於一月一日股東股本 Shareholders’ equity at 1 January

承前報告 As previously reported 3,765,935 3,671,832

來自遞延稅項會計政策 Prior period adjustment arising from

改變之前期調整 change in accounting policy for

deferred taxation 3, 31 1,449 5,975

重報 As restated 3,767,384 3,677,807

非持作買賣用途證券之 Realisation of revaluation (surplus)/deficit of

重估（收益）／虧損變現 non-trading securities 31 (2,210) 3,854

非持作買賣用途證券之 Net change in fair value of non-trading

淨公平值變動 securities 31 26,052 (6,152)

承前報告未在收益表內 Net losses not recognised in the income

確認之虧損淨額 statement as previously reported (2,298)

遞延稅項（二零零二年重報） Deferred taxation (2002 as restated) 31 (4,534) 368

未在收益表內確認之盈利／ Net gains/(losses) not recognised in the

（虧損）淨額（二零零二年重報） income statement (2002 as restated) 19,308 (1,930)

年度淨盈利 Net profit for the year

承前報告 As previously reported 225,338

來自遞延稅項會計政策 Prior period adjustment arising from change

改變之前期調整 in accounting policy for deferred taxation 3 (4,894)

股東應佔溢利 Profit attributable to shareholders

（二零零二年重報） (2002 as restated) 31 138,138 220,444

年內宣派及派發股息 Dividend declared and paid during the year 13 (140,659) (128,937)

於十二月三十一日股東股本 Shareholders' equity as at 31 December 3,784,171 3,767,384




Consolidated Cash Flow Statement綜合現金流動表




附註千港元千港元千港元千港元

Notes HK$’000 HK$’000 HK$’000 HK$’000

營運活動 Operating activities


非現金項目之調整： Adjustments for non-cash items:

折舊 Depreciation 54,919 53,606

壞帳及呆帳準備金調撥 Charge for bad and doubtful debts 186,713 338,975

扣除收回後貸款撇帳 Advances written off net of recoveries (185,152) (484,712)

投資及根據貸款協議 Provisions for investments and assets

所得資產之撥備 acquired under lending agreement 71,463 32,263

277,660 162,000

營運資產之（增加）／減少： (Increase)/decrease in operating assets:

短期資金（原於三個月 Short-term funds with original maturity of

以上到期） over three months 772,406 (523,804)

一至十二個月到期之 Placements maturing between one and

同業放款（原於三個月 twelve months with original maturity of

以上到期） over three months 176,672 (158,852)

貿易票據及存款證 Trade bills and certificates of deposit (100,547) 62,263

客戶貸款 Advances to customers (606,561) 1,568,498

應計利息及其他帳目 Accrued interest and other accounts (280,773) (319,014)

持作買賣用途之證券 Trading securities (91,302) (8,970)

非持作買賣用途之證券 Non-trading securities (8,818,136) 1,587,721

(8,948,241) 2,207,842

營運負債之增加／（減少）： Increase/(decrease) in operating liabilities:

銀行同業及其他 Deposits and balances of banks and

金融機構存款 other financial institutions 145,066 (48,198)

客戶存款 Deposits from customers 6,725,612 (175,110)

已發行存款證 Certificates of deposit issued 38 841,153 195,494

外匯基金票據短期倉盤 Short position in Exchange Fund Bills (2,517,363) 4,094,931

其他帳目及負債 Other accounts and liabilities 360,090 (4,802)

5,554,558 4,062,315

營運之現金（支出）／收入淨額 Net cash (used in)/generated from operations (3,116,023) 6,432,157

已付香港利得稅 Hong Kong Profits Tax paid (8,050) (21,809)

已退回香港利得稅 Hong Kong Profits Tax refunded 1,972 2,934

營運活動之現金（支出）／ Net cash (used in)/generated from operating activities (3,122,101) 6,413,282

　收入淨額


Consolidated Cash Flow Statement綜合現金流動表




附註千港元千港元千港元千港元

Notes HK$’000 HK$’000 HK$’000 HK$’000

投資活動 Investing activities

購買固定資產支出 Payments for purchase of fixed assets (22,811) (39,944)

出售固定資產所得款項淨額 Net proceeds from disposal of fixed assets 0 9,728

投資聯營公司之還款 Repayment from investment in

associated company 927 1,875

投資活動之現金支出淨額 Net cash used in investing activities (21,884) (28,341)

融資項目 Financing activities

股息派發 Dividends paid (140,659) (128,937)

融資項目之現金支出 Net cash used in financing activities (140,659) (128,937)

淨額

現金及等同現金項目之 Net (decrease)/increase in cash

（減少）／增加淨額 and cash equivalents (3,284,644) 6,256,004

於一月一日之現金 Cash and cash equivalents

及等同現金項目 at 1 January 11,994,001 5,737,997

於十二月三十一日之現金 Cash and cash equivalents

及等同現金項目 at 31 December 37 8,709,357 11,994,001

營運活動之現金流動包括： Cashflows from operating activities include:


2003 2002

千港元千港元

HK$’000 HK$’000

已收利息 Interest received 916,916 1,128,846

已付利息 Interest paid (338,093) (427,421)

已收股息 Dividends received 4,630 3,790




Notes to the financial statements財務報告附註

1 業務及公司附屬集團Activities and Corporate Affiliation

The Bank, through its branches and subsidiaries, provides a range of banking, financial

and related services.

The directors consider the Group’s ultimate holding company at 31 December 2003 to

be Arab Banking Corporation (B.S.C.) (“ABC”) which is incorporated in the State of

Bahrain and operates as an offshore bank.

On 16 February 2004, Fubon Financial Holding Co., Ltd. (“Fubon Financial”) made a

general offer for the whole of the Bank’s issued share capital. ABC accepted the offer

for all of its 55% shareholding in the Bank on the same day. The directors regard

Fubon Financial as the ultimate holding company from that date onwards. The offer

was closed on 8 March 2004 and Fubon Financial further acquired 20.08% in the

Bank’s issued share capital from other shareholders, increasing its total shareholding to

75.08%.

2 主要會計政策Significant Accounting Policies

(a) Statement of complianceThese financial statements have been prepared in accordance with all applicable

Hong Kong Financial Reporting Standards (which includes all applicable Statements

of Standard Accounting Practice and Interpretations) issued by the Hong Kong

Society of Accountants (“HKSA”), accounting principles generally accepted in

Hong Kong and the requirements of the Hong Kong Companies Ordinance.

These financial statements also comply with the applicable disclosure provisions of

the “Rules Governing the Listing of Securities on the Stock Exchange of Hong

Kong Limited” and the recommendations in the Supervisory Policy Manual

“Financial Disclosures by Locally Incorporated Authorised Institutions” issued by

the Hong Kong Monetary Authority (“HKMA”). A summary of the significant

accounting policies adopted by the Group is set out below.

本銀行透過其分行及附屬公司，提供一

系列銀行、財務及有關之服務。

董事會認為於二零零三年十二月三十一

日本集團之最終控股公司為阿拉伯銀行

集團。該集團在巴林註冊，為一家經營

離岸業務之銀行。

於二零零四年二月十六日，富邦金融控

股股份有限公司（「富邦金控」）對本銀行

全部已發行股本提出全面收購建議。阿

拉伯銀行集團於同日接受此建議，並出

售其55%本銀行股權。董事會認為富邦

金控於該日後成為本銀行之最終控股公

司。全面收購建議於二零零四年三月八

日截止，富邦金控再自其他股東購入

20.08%本銀行股本，增加其全部股權至

75.08%。

(a) 遵守聲明此等財務報告乃根據香港會計師公

會（「香港會計師公會」）頒佈之香港

財務報告準則（包括一切適用的《會

計實務準則》及詮譯）、香港普遍採

納之會計準則及香港《公司條例》之

規定而編製。

此等財務報告遵守香港聯合交易所

有限公司「證券上市規則」之適用披

露規定及香港金融管理局頒佈之監

管政策手冊內「本地註冊認可機構

披露財務資料」指引之建議而編製。

本集團所採納之主要會計政策概要

載於下文。



2 主要會計政策（續）Significant Accounting Policies (continued)

(b) Basis of preparation of the financial statementsThe measurement basis used in the preparation of the financial statements is

historical cost modified by the revaluation of premises in 1989, and the marking

to market of certain investments in securities as explained in the accounting

policies set out below.

(c) Investment in subsidiariesA subsidiary, in accordance with the Hong Kong Companies Ordinance, is a

company in which the Group, directly or indirectly, holds more than half of the

issued share capital, or controls more than half of the voting power, or controls

the composition of the board of directors. Subsidiaries are considered to be

controlled if the Bank has the power, directly or indirectly, to govern their financial

and operating policies so as to obtain benefits from their activities.

The financial statements of the controlled subsidiary are consolidated into the

consolidated financial statements, unless the subsidiary is acquired and held

exclusively with a view to subsequent disposal in the near future or operates

under severe long-term restrictions which significantly impair its ability to transfer

funds to the Group, in which case, the investment is as an investment in trading

securities or non-trading securities (see Note 2(g)(ii) and (iii)).

Intra-group balances and transactions, and any unrealised profits arising from

intra-group transactions, are eliminated in full in preparing the consolidated

financial statements. Unrealised losses resulting from intra-group transactions are

eliminated in the same way as unrealised gains, but only to the extent that there

is no evidence of impairment.

In the Bank’s balance sheet, an investment in a subsidiary is stated at cost less any

impairment losses (Note 2(i)), unless it is acquired and held exclusively with a view

to subsequent disposal in the near future or operates under severe long-term

restrictions which significantly impair its ability to transfer funds to the Bank, in

which case, it is accounted for as an investment in trading securities or non-

trading securities (see Note 2(g)(ii) and (iii)).

(b)財務報告之編製基準編製財務報告所採用之計算基準為

歷史成本法（經由一九八九年之樓

宇重估加以修訂）及如下文之會計

政策所闡釋，若干證券投資之市場

價值。

(c) 附屬公司投資按照香港《公司條例》，附屬公司為

本集團直接或間接持有其逾半數已

發行股本或控制其逾半數投票權或

控制其董事會成員組合之公司，倘

本銀行有權直接或間接管治其財政

及營運政策而從其業務中獲取利益，

則被列為受控附屬公司。

受控附屬公司之財務報告乃於綜合

財務報告中綜合處理，除非收購及

獨家持有附屬公司之目的為於不久

將來作出售或於嚴緊之長期限制下

經營而嚴重影響其向本集團轉撥資

金之能力，在此情況下，投資將被

列為指作買賣用途或非持作買賣用

途之證券投資(見附註2(g)(ii)及(iii))。

集團間之結餘及交易，及任何集團

間之交易而產生之未變現溢利均於

編製綜合財務報告時悉數抵銷。集

團間交易產生之未變現虧損以未變

現溢利一致之方法予以抵銷，惟僅

抵銷無減值證明之虧損。

於本行之資產負債表中，附屬公司

之投資乃以成本減任何減值虧損（見

附註2(i)）列帳，除非收購及獨家持

有之目的為於不久將來作出售或於

嚴緊之長期限制下經營而嚴重影響

其向本集團轉撥資金之能力，在此

情況下，其被計入作持作買賣用途

或非持作買賣用途之證券投資（見

附註2(g)(ii)及 (iii)）。




(d) Associated companiesAn associated company is a company in which the Group or the Bank has

significant influence, but not control or joint control, over its management,

including participation in the financial and operating policy decisions.

The investment in the associated company is not equity accounted for in the

consolidated financial statements as it is considered by the directors to be

immaterial to the Group. It is stated at cost less impairment losses (Note 2(i)) in

the Group’s and the Bank’s balance sheet. The results of the associated company

are included in the Group’s and the Bank’s income statement to the extent of

dividends received and receivable (Note 2(j)).

(e) Advances and doubtful debts(i) Advances to customers and trade bills are carried at amounts advanced less

payments collected, any suspended interest and reserves for credit losses.

Cash rebates granted in relation to residential mortgage loans are capitalised

and amortised to the income statement over the early prepayment penalty

period.

(ii) Specific and general provisions

Provisions for bad and doubtful debts are made promptly and on a prudent

and consistent basis. Specific provisions are determined by the directors at a

level deemed appropriate to absorb expected losses from individual accounts

after taking into account the value of collateral held. General provisions

augment specific provisions and provide cover for loans which are impaired

at the balance sheet date but which will not be identified as such until some

time in the future. Both specific and general provisions are charged to the

income statement and are deducted from trade bills, other assets and

advances to customers in the balance sheet. When there is no longer any

realistic prospect of recovery, the outstanding debt is written off.

(d)聯營公司聯營公司為本集團或本銀行對其管

理有重大影響力（惟並非控制或聯

合控制）之公司，包括參與其財政

及營運政策之決定。

由於董事認為聯營公司之投資對本

集團之影響並不重大，故並無以權

益法計入綜合財務報告，而按成本

扣除減值虧損（見附註2(i)）於本集團

及本銀行之資產負債表中列帳。聯

營公司之業績乃按已收及應收之股

息（見附註2(j)）於本集團及本銀行之

收益表中列帳。

(e) 貸款及呆帳(i) 客戶貸款及貿易帳款乃按貸款

金額減已收款項、任何懸帳利

息及信貸虧損儲備列帳。就住

宅按揭貸款所授予之現金回贈

按提早還款項罰金期於收益表

中資本化及攤銷。

(ii) 特別及一般撥備

呆壞帳撥備乃即時並按審慎及一

致之基準作出。特別撥備乃由董

事於計及所持有之抵押品價值其

認為可抵銷個別帳目之預期虧損

之適當水平而釐定。一般撥備乃

用作彌補特別撥備之不足及就貸

款於結算日出現將於未來辨認之

減值提撥準備。特別撥備及一般

撥備均計入收益表，並於資產負

債表中自貿易票據、其他資產及

客戶貸款中扣除。倘未能確認可

收回之款項，則未償還債務將予

以註銷。




(e) Advances and doubtful debts (continued)

(iii) Advances on which interest is being suspended

Interest suspended on doubtful debts is netted in the balance sheet against

“Advances to customers” and accrued interest receivable in “Accrued

interest and other accounts”. Amounts received are applied to the

repayment of outstanding indebtedness, with any surplus used to recover

any specific provisions and then suspended interest.

(iv) Repossessed assets or assets acquired under lending agreements (“acquired

assets”)

Repossessed assets and acquired assets continue to be reported as advances

if the advance has not been fully written off and the Bank is seeking recovery

from both the borrower and amounts to be generated from the repossessed

assets or the acquired assets. The advance is recorded at the expected

recoverable amount and the specific provision is adjusted. Any subsequent

changes in the values of the repossessed assets or acquired assets are

recorded as a movement in specific provision. Any income derived from

repossessed assets and acquired assets is recognised as a reduction in the

advance balance.

Acquired assets where it is intended to achieve an orderly realisation and the

Bank is no longer actively seeking repayment from the borrower are

reclassified to other accounts. The assets acquired are recorded at the

carrying value of the advance disposed of at the date of the acquisition less

any subsequent impairment losses (Note 2(i)). Income derived from acquired

assets is recognised in the income statement.

(e) 呆壞帳撥備（續）(iii) 利息懸帳之貸款

呆帳之懸帳利息於資產負債表

之「客戶貸款」中扣除，並於「應

計利息及其他帳目」應計應收利

息。應收帳項撥作償還未償債

務，其後任何盈餘撥作彌償任

何特別撥備，倘尚有盈餘，則

撥作彌償懸帳利息。

(iv) 根據貸款協議收回資產或所得

資產（「所得資產」）

倘貸款並無悉數撇銷，而本銀

行尋求向借款人收回貸款以及

來自收回資產或所得資產產生

之金額，則收回資產及所得資

產繼續以貸款方式列帳。貸款

以預期可收回款項列帳，而特

別撥備會經調整。收回資產或

所得資產之價值其後之任何變

動按特別撥備變動列帳。源自

收回資產及所得資產之任何收

益於貸款結餘中確認為一項扣

減。

倘所得資產預期可有秩序變現，

而本銀行再無向借款人尋求償

還款項，所得資產重新分類列

入其他帳目。所得資產按於所

得日期出售貸款之帳面值減其

後之任何減值虧損（見附註2(i)）

列帳。源自所得資產之收益於

收益表中確認。




(f) Finance leasesLeases under which substantially all the risks and benefits of ownership are

transferred to lessees are classified as finance leases.

Where assets are leased out under finance leases, an amount representing the net

investment in the lease is included in the balance sheet as advances to customers.

Finance income implicit in the lease payments is credited to the income statement

over the period of the leases so as to produce an approximately constant periodic

rate of return on the outstanding net investment in the leases for each

accounting period.

(g) Investments in securitiesThe Group’s and the Bank’s policies for investments in securities other than

investments in subsidiaries and associated companies are as follows:

(i) Dated debt securities that the Group and/or the Bank have the ability and

intention to hold to maturity are classified as held-to-maturity securities.

Held-to-maturity securities are stated in the balance sheet at amortised cost

less any provisions for diminution in value. Provisions are made when carrying

amounts are not expected to be fully recovered and are recognised as an

expense in the income statement.

Profits or losses on realisation of held-to-maturity securities are accounted for

in the income statement as they arise.

(ii) Trading securities are stated in the balance sheet at fair value. Changes in fair

value are recognised in the income statement as they arise. Securities are

presented as trading securities when they were acquired principally for the

purpose of generating a profit from short term fluctuations in price or

dealer’s margin.

(f) 融資租貸凡將資產擁有權之風險及收益絕大

部份轉讓予承租人之租賃均列作融

資租賃。

倘資產乃按融資租賃出租，租賃投

資淨額將於資產負債表中列作客戶

貸款。租賃款項之財務收入於租賃

期內記入收益表，以便每一個會計

期間之未償付租賃投資淨額計出之

每期回報率大致相若。

(g)證券投資本集團及本銀行之證券投資（在附

屬公司及聯營公司之投資除外）政

策如下：

(i) 本集團及／或本銀行有能力及

打算持有至到期之有期債務證

券乃列為持至到期證券。持至

到期證券在資產負債表內按攤

銷成本扣除任何永久減值準備

後入帳。當預期該等帳面值未

能全數被彌償，有關撥備將作

支出於收益表中確認。

持至到期證券之變現溢利或虧

損均於產生時計入收益表中。

(ii) 持作買賣用途的證券乃按公平

價值列入資產負債表。公平價

值之變動於出現時在收益表內

確認。當購入證券之主要目的

在於從短期價格波動或證券商

之保證金中賺取利潤，即可列

為持作買賣用途的證券。




(g) Investments in securities (continued)

(iii) Non-trading securities are stated in the balance sheet at fair value. Changes

in fair value are recognised in the investment revaluation reserve until the

security is sold, collected, or otherwise disposed of, or until there is objective

evidence that the security is impaired, at which time the relevant cumulative

gain or loss is recognised in the income statement.

(iv) Transfers from the investment revaluation reserve to the income statement as

a result of impairments are reversed when the circumstances and events that

led to the impairment cease to exist and there is persuasive evidence that the

new circumstances and events will persist for the foreseeable future.

(v) Profits or losses on disposal of investments in securities are accounted for in

the income statement as they arise. In the case of non-trading securities, the

profit and loss includes any amount previously held in the investment

revaluation reserve in respect of that security.

(h) Fixed assets and depreciationFixed assets are stated at cost or valuation less impairment losses (Note 2(i)) and

less accumulated depreciation calculated to write off the assets over the

estimated useful lives.

Leasehold land is depreciated over the unexpired terms of the leases on a straight-

line basis. Premises are depreciated at the higher of 2% per annum or over the

unexpired terms of the leases.

Furniture, fixtures and equipment are depreciated over their estimated useful

lives, which are generally between 3 to 10 years.

(g)證券投資（續）(iii) 非持作買賣用途的證券乃按公

平價值列入資產負債表。公平

價值之變動在已出售、領取或

以其他方式處理之證券後在投

資重估儲備中確認，或直至在

客觀證據顯示證券價值已削減，

屆時有關之累積盈虧會於收益

表中確認。

(iv) 因減值而由投資重估儲備撥往

收益表之金額，在導致削減價

值之情況及事件不再存在及有

具說服力之證據顯示新情況及

事件在可見將來將持續時撥回。

(v) 出售證券投資之盈虧在出現時

計入收益表內。如屬非持作買

賣用途的證券，損益包括任何

之前在投資重估儲備內就該證

券所持有之金額。

(h)固定資產及折舊固定資產以成本值或估值減減值虧

損（見附註2(i)）及累計折舊列帳。折

舊乃按資產之估計可使用年期予以

攤銷。

租賃土地按未到期租約年期以直線

法予以折舊。物業乃按每年2%或按

未到期租約年期計算（以較高者為

準）予以折舊。

傢俬、裝置及設備乃按其估計可使

用年期(一般介乎3至10年)予以折舊。




(h) Fixed assets and depreciation (continued)

Certain of the Group’s leasehold land and premises have been included at

Directors’ valuation made having regard to independent professional valuations

carried out in November 1989. The surplus arising on revaluation was credited to

the revaluation reserve. Additions to revalued premises made subsequent to the

revaluation are included at cost. Premises which have not been the subject of

revaluation are included at cost. The revaluation reserve arising from the

November 1989 revaluation was transferred to the capital redemption reserve

when the Bank redeemed its “A” and “B” preference shares in June 1991.

In preparing these financial statements, advantage has been taken of the

transitional provisions in paragraph 80 of the Statement of Standard Accounting

Practice 17 “Property, Plant and Equipment” issued by the HKSA with the effect

that premises have not been revalued to fair value at the balance sheet date. It is

not the Directors’ present intention to revalue the premises in the future.

Subsequent expenditure relating to a fixed asset that has already been recognised

is added to the carrying amount of the assets when it is probable that future

economic benefits, in excess of the originally assessed standard of performance of

the existing asset, will flow to the Group. All other subsequent expenditure is

recognised as an expense in the period in which it is incurred.

Gains or losses arising from the retirement or disposal of fixed assets are

determined as the difference between the estimated net disposal proceeds and

the carrying amount of the assets and are recognised in the income statement on

the date of retirement or disposal.

(h)固定資產及折舊（續）本集團之若干租賃土地物業已計入

董事經參考於一九八九年十一月進

行之獨立專業估值而作出之估值內。

重估產生之盈餘已計入重估儲備內。

重估後對重估物業之添置已按成本

值入帳。並無重估之物業已按成本

值入帳。於一九八九年十一月重估

產生之重估儲備，在本銀行於一九

九一年六月贖回其「A」及「B」優先股

時，轉撥至資本贖回儲備內。

在編製此等財務報告時，因應香港

會計師公會發出之《會計實務準則》

第17條第80段中「房地產、廠房及

設備」之過渡規則，該等物業並無

於結算日重估至公平值。董事現不

擬於日後重估該等物業。

倘可確認固定資產之已確認結算日

後開支可為本集團帶來未來經濟效

益（即超越現有資產原本所評估之

標準表現），則計入資產之帳面值。

所有其他結算日後開支則於產生時

確認為期內開支。

因棄用或出售固定資產所產生之盈

虧乃根據該資產之估計出售所得款

項淨額及該資產之帳面值之差額計

算，並於棄用或出售當日於收益表

中確認。




(i) Impairment of assetsInternal and external sources of information are reviewed at each balance sheet

date to identify indications that fixed assets, acquired assets and investments in

subsidiaries and associated companies may be impaired.

If any such indication exists, the asset’s recoverable amount is estimated. An

impairment loss is recognised whenever the carrying amount of an asset or its

cash-generating unit exceeds its recoverable amount.

The recoverable amount of an asset is the greater of its net selling price and value

in use. In assessing value in use, the estimated future cash flows are discounted to

their present value using a pre-tax discount rate that reflects current market

assessments of the time value of money and the risks specific to the asset. Where

there are assets that do not generate cash flows largely independent of those

from other assets, recoverable amounts are determined for the smallest group of

assets that generates cash inflows independently (i.e. a cash-generating unit).

An impairment loss is reversed if there has been a change in the estimates used to

determine the recoverable amount. A reversal of impairment loss is limited to the

asset’s carrying amount that would have been determined had no impairment loss

been recognised in prior years. Reversals of impairment losses are credited to the

income statement in the year in which the reversals are recognised.

(i) 資產減值本集團於每個結算日均會審核其內部

及外間資料，以確定是否有跡象顯示

附屬公司及聯營公司之固定資產、

所得資產及投資可能遭受任何減值。

倘若發現任何減值跡象，則本集團

會估計該資產之可收回款額。倘資

產或其現金產生單位之帳面值高於

可收回款額，則確認為減值虧損。

資產之可收回款額是其售價淨額及

使用價值二者之較高者。於評估使

用價值時，會把估計未來現金流量

按現有市值評估之貨幣時間價值及

特有風險的稅前折扣率折實為現在

價值。倘某些資產不能大部份地獨

立於其他資產產生現金流量，其可

收回款項則取決於可獨立地產生現

金流量的最少資產組合（即現金產

生單位）。

倘用作釐定可收回款額之估計有所

變動，則減值虧損會被撥回。減值

虧損之撥回不可超越有關資產未於

過往年度被確認為並無出現減值虧

損之帳面值。減值虧損之撥回乃於

確認年度計入收益表內。




(j) Revenue recognitionProvided that it is probable that the economic benefits will flow to the Group and

the revenue and costs, if applicable, can be measured reliably, revenue is

recognised in the income statement as follows:

(i) Interest income

Interest income and expenses are accrued on a time-apportioned basis on the

principal outstanding and at the rate applicable except in the case of

doubtful debts where interest is credited to a suspense account which is

netted in the balance sheet against the relevant balances. Fee income and

expenses are recognised when earned or incurred.

Interest income from dated debt securities is recognised as it accrues, as

adjusted by the amortisation of the premium or discount on acquisition, so

as to achieve a constant rate of return over the period from the date of

purchase to the date of maturity.

(ii) Fee and commission income

Fee and commission income arises on financial services provided by the

Group including cash management services, brokerage services, investment

advice and financial planning, investment banking services, project and

structured finance transactions, and asset management services. Fee and

commission income is recognised when the corresponding service is

provided, except where the fee is charged to cover the costs of continuing

service to, or risk borne for, the customer, or is in the nature of interest. In

these cases, the fee is recognised as income in the accounting period in

which the costs or risks are incurred or is accounted for as interest income.

(j) 收益確認當經濟收益很可能流入本集團，而

收入及成本（倘適用）能可靠地計算

時，收益會於收益表確認如下：

(i) 利息收入

利息收入及支出乃以未償還本

金及適用利率按時間劃分基準

而應予累算，惟利息計入暫記

帳戶之呆帳除外，而有關利息

則於資產負債表中與有關結餘

沖銷。費用收入及支出於賺取

或產生時予以確認。

來自定期債務證券之利息收入

於應計時確認，並經攤銷收購

時之溢價或折讓而調整，以於

自購買日期起至到期日止期間

達至一個穩定之回報率。

(ii) 費用及佣金收入

費用及佣金收入乃本集團提供

財務服務，包括現金管理服務、

經紀服務、投資顧問及財務策

劃、投資銀行服務、項目及結

構性融資交易以及資產管理服

務等所得收入。費用及佣金收

入於相關服務提供時確認，惟

為支付持續向客戶提供服務之

成本而收取、或為客戶承擔風

險、或屬利息性質之費用則除

外。在該等情況下，費用會於

承擔成本或風險或計算為利息

收入之會計期間確認為收入。




(j) Revenue recognition (continued)

(iii) Dividend income

Dividends from listed investments are recognised when the share price of

such investments is quoted ex-dividend.

Interim dividends from unlisted investments are recognised when the

directors of the investee companies declare such dividends; final dividends

from unlisted investments are recognised when the shareholders of the

investee companies approve the dividends proposed by the directors at the

general meeting.

(iv) Rental income from operating leases

Rental income receivable under operating leases is recognised in the income

statement in equal instalments over the accounting periods covered by the

lease term, except where an alternative basis is more representative of the

pattern of benefits to be derived from the leased asset. Lease incentives

granted are recognised in the income statement as an integral part of the

aggregate net lease payments receivable. Contingent rentals are recognised

as income in the accounting period in which they are earned.

(k) Operating lease chargesWhere the Group has the use of assets under operating leases, payments made

under the leases are charged to the income statement in equal instalments over

the accounting periods covered by the lease term, except where an alternative

basis is more representative of the pattern of benefits to be derived from the

leased asset. Lease incentives received are recognised in the income statement as

an integral part of the aggregate net lease payments made.

(j) 收益確認（續）(iii) 股息收入

上市投資之股息於該等投資之

股價為除息報價時予以確認。

非上市投資之中期股息於受投

資公司董事宣派該等股息時予

以確認；非上市投資之末期股

息於受投資公司股東批准董事

在股東大會上建議之股息時予

以確認。

(iv) 源自營運租賃之租金收入

營運租賃項下之應收租金收入

於會計期間內按租賃年期以等

額分期於收益表中確認，惟倘

可選擇之其他基準更有效列示

產生自已租賃資產之盈利模式

則除外。已獲授之租賃優惠乃

列為整體總額減應收租賃款項

之一部份，並於收益表中確認。

或然租金於賺取租金之會計期

間於收益表中確認。

(k) 營運租賃倘本集團使用營運租賃資產，租賃

之款項於會計期間內按租賃年期以

等額分期記入收益表中，惟倘可選

擇之其他基準更能列示產生自已租

賃資產之盈利模式則除外。已獲取

之租賃優惠乃按整體總額減租賃款

項，並於收益表中確認。




(l) Income tax(i) Income tax for the year comprises current tax and movements in deferred tax

assets and liabilities. Current tax and movements in deferred tax assets and

liabilities are recognised in the income statement except to the extent that

they relate to items recognised directly in equity, in which case they are

recognised in equity.

(ii) Current tax is the expected tax payable on the taxable income for the year,

using tax rates enacted or substantively enacted at the balance sheet date,

and any adjustment to tax payable in respect of previous years.

(iii) Deferred tax assets and liabilities arise from deductible and taxable temporary

differences respectively, being the differences between the carrying amounts

of assets and liabilities for financial reporting purposes and their tax bases.

Deferred tax assets also arise from unused tax losses and unused tax credits.

Apart from the temporary differences arising from the initial recognition of

assets or liabilities that affect neither accounting nor taxable profit, all

deferred tax liabilities, and all deferred tax assets to the extent that it is

probable that future taxable profits will be available against which the asset

can be utilised, are recognised.

The amount of deferred tax recognised is measured based on the expected

manner of realisation or settlement of the carrying amount of the assets and

liabilities, using tax rates enacted or substantively enacted at the balance

sheet date. Deferred tax assets and liabilities are not discounted.

(l) 所得稅(i) 本年度之所得稅包括現稅項及

遞延稅項資產及負債之變動。

現稅項及遞延稅項資產及負債

之變動於收益表確認，不包括

與直接確認為股本之項目相關

者，在此情況下，該等變動則

會被確認為股本。

(ii) 現稅項乃預期於本年度就應課

稅收入按於結算日已立例制定

或已實質立例制定之稅率計算

之應付稅項，以及過往年度應

繳稅項之任何調整。

(iii) 遞延稅項資產及負債乃來自可

扣稅或應課稅暫時性差異，即

因資產及負債分別就財務報告

及稅基而言之帳面值之間的差

異而產生。遞延稅項資產亦因

未動用稅項虧損及未動用稅項

抵免而產生。

除因首初確認影響會計或應課

稅溢利之資產或負債而產生之

暫時差異外，所有遞延稅項負

債及遞延稅項資產當其甚有可

能用於抵銷未來應課稅溢利時

均會予以確認。

遞延稅項確認額乃按資產及負

債之帳面值之預期變現或支付

形式，按於結算已立例制定或

已實質立例制定之稅率計算。

遞延稅項資產及負債不作折讓。




(l) Income tax (continued)

The carrying amount of a deferred tax asset is reviewed at each balance

sheet date and is reduced to the extent that it is no longer probable that

sufficient taxable profit will be available to allow the related tax benefit to be

utilised. Any such reduction is reversed to the extent that it becomes

probable that sufficient taxable profit will be available.

(iv) Current tax balances and deferred tax balances, and movements therein, are

presented separately from each other and are not offset. Current tax assets

are offset against current tax liabilities, and deferred tax assets against

deferred tax liabilities if, and only if, the Bank or the Group has the legal

enforceable right to set off current tax assets against current tax liabilities

and the following additional conditions are met:

– in the case of current tax assets and liabilities, the Bank or the Group

intends either to settle on a net basis, or to realise the asset and settle

the liability simultaneously; or

– in the case of deferred tax assets and liabilities, if they relate to income

taxes levied by the same taxation authority on either:

• the same taxable entity; or

• different taxable entities, which, in each future period in which

significant amounts or deferred tax liabilities or assets are expected

to be settled or recovered, intend to realise the current tax assets

and settle the current tax liabilities on a net basis or to realise and

settle simultaneously.

(l) 所得稅（續）遞延稅項資產之帳面值乃於各

結算日被重新審閱，對預期不

再有足夠之應課稅溢利以供有

關稅項得益動用，則予扣減，

倘若有可能獲得足夠之應課稅

溢利，則任何有關扣減均會被

撥回。

(iv) 現稅項結餘及遞延稅項結餘以

及有關變動，均會個別呈列及

不作抵銷。如（及僅在）本銀行

或本集團擁有法律強制執行權

將現稅項資產抵銷現稅項負債，

並在下列其他條件達成之情況

下，現稅項資產方會與現稅項

負債抵銷，以及遞延稅項資產

會與遞延稅項負債抵銷：

－如屬現稅項資產及負債，本銀

行或本集團擬以淨值基準支付

或同時變現資產並支付負債；

或

－有關的遞延稅項資產及負債，

為同一稅務機關對以下機構徵

收所得稅所產生：

‧ 同一個應課稅實體；或

‧ 不同的應課稅實體，在未

來每一個預計實現重大遞

延稅項的期間，該實體計

劃以淨額形式結算現稅項

資產及負債或兩者同時收

回及償還。




(m)Employee benefits(i) Salaries, annual bonuses, paid annual leave and the cost to the Group of

non-monetary benefits are accrued in the year in which the associated

services are rendered by employees of the Group. Where payment or

settlement is deferred and the effect would be material, these amounts are

stated at their present value.

(ii) Contributions to Mandatory Provident Funds as required under the Hong

Kong Mandatory Provident Fund Schemes Ordinance are recognised as an

expense in the income statement as incurred.

(iii) The Group’s net obligation in respect of defined benefit retirement plans is

calculated separately for each plan by estimating the amount of future

benefit that employees have earned in return for their service in the current

and prior periods; that benefit is discounted to determine the present value,

and the fair value of any plan assets is deducted. The discount rate is the

yield at the balance sheet date on high quality corporate bonds that have

maturity dates approximating the terms of the Group’s obligations. The

calculation is performed by a qualified actuary using the projected unit credit

method.

When the benefits of a plan are improved, the portion of the increased

benefit relating to past service by employees is recognised as an expense in

the income statement on a straight-line basis over the average period until

the benefits become vested. To the extent that the benefits vest immediately,

the expense is recognised immediately in the income statement.

(m)僱員福利(i) 薪酬、每年花紅、有薪年假及

本集團非現金福利成本於本集

團僱員提供有關服務之年度內

累計。倘延遲付款或清償將會

帶來嚴重影響，該等金額須按

現值列帳。

(ii) 香港強制性公積金計劃條例項

下規定的強制性公積金供款於

產生時在收益表中確認為開支。

(iii) 本集團有關定額退休福利計劃

之責任透過估計僱員於現時或

之前期間就彼等所提供之服務

而獲得之日後福利金額根據每

項計劃分開計算；該福利乃貼

現以釐定現值，並於任何計劃

資產之公平價值中扣減。貼現

率乃直至到期日年期約等於本

集團責任之期限之優質企業債

券於結算日之收益率。貼現率

乃由合資格精算師以預測單位

積分方法計算。

當某計劃之福利有所改善時，

有關僱員之過往服務所增加福

利之部份於直至該等福利予以

歸屬止之平均期間以直線法於

收益表中確認為開支。倘該等

福利立即予以歸屬，開支立即

於收益表中確認。




(m)Employee benefits (continued)

In calculating the Group’s obligation in respect of a plan, to the extent that

any cumulative unrecognised actuarial gain or loss exceeds ten percent of the

greater of the present value of the defined benefit obligation and the fair

value of plan assets, that portion is recognised in the income statement over

the expected average remaining working lives of the employees participating

in the plan. Otherwise, the actuarial gain or loss is not recognised.

Where the calculation of the Group’s net obligation results in a negative

amount, the asset recognised is limited to the net total of any unrecognised

actuarial losses and past service costs and the present value of any future

refunds from the plan or reductions in future contributions to the plan.

(iv) Termination benefits are recognised when, and only when, the Group

demonstrably commits itself to terminate employment or to provide benefits

as a result of voluntary redundancy by having a detailed formal plan which is

without realistic possibility of withdrawal.

(n) Translation of foreign currenciesTransactions in foreign currencies during the year are translated into Hong Kong

dollars at the rates of exchange ruling at the transaction dates. Monetary assets

and liabilities denominated in foreign currencies are translated into Hong Kong

dollars at the exchange rates ruling at the balance sheet date. Exchange gains and

losses are included in the income statement.

(o) Cash and cash equivalentsCash and cash equivalents comprise cash on hand, placements with banks and

other financial institutions, and short-term, highly liquid investments that are

readily convertible into known amounts of cash and which are subject to an

insignificant risk of changes in value, having been within three months of

maturity at acquisition.

(m)僱員福利（續）就計算本集團於計劃中之責任

時，在任何累計未確認精算損

益超逾定額福利供款之現值或

計劃資產之公平價值（以較大者

為準）之10%之規限下，該部份

於參與計劃之僱員之預期平均

所餘工作年期內在收益表中確

認。否則，精算損益不予確認。

倘所計算之本集團供款淨額為

負數，所確認之資產僅限於任

何未確認精算虧損及過往服務

成本以及計劃之任何日後退款

現值或計劃之日後供款扣減之

總淨額。

(iv) 終止福利當（及僅在）本集團可

充份證明其終止僱用或因有周

詳正式計劃（該計劃並不可能撤

銷）自願裁減冗員時予以確認。

(n) 外幣換算年內之外幣交易均以交易當日之匯

率換算為港元。以外幣為單位之貨

幣資產及負債均按結算日之匯率換

算為港元。匯兌損益均納入收益表

內。

(o)現金及等同現金項目現金及等同現金項目包括手頭現金、

銀行及其他金融機構之存款以及即

時可轉換作已知現金款項及須受不

重大的價值變動風險限制並於收購

後三個月內到期之短期、高流通性

投資。




(p) DerivativesDerivatives refer to financial contracts whose value depends on the value of one

or more underlying assets or indices. Derivatives include futures, forward, swap

and option contracts undertaken by the Group and the Bank in the foreign

exchange, interest rate and equity markets.

The accounting for derivatives is dependent upon whether the transactions are

undertaken for trading purposes or as part of the management of asset and

liability portfolios.

(i) Derivatives used for trading purposes

Trading transactions include transactions undertaken for market making, to

service customers’ needs and for proprietary purposes, as well as any related

hedges.

Transactions undertaken for trading purposes are marked to market and the

gain or loss arising is recognised in the income statement as trading profits or

losses, after appropriate deferrals for unearned credit margin and future

servicing costs. Unrealised gains on transactions are included in “Accrued

interest and other accounts” in the balance sheet. Unrealised losses on

transactions are included in “Other accounts and liabilities”. Netting is

applied where a legal right of set-off exists.

The fair value of derivatives that are not exchange-traded is estimated at the

amount that the Group would receive or pay to terminate the contract at the

balance sheet date taking into account current market conditions and the

current creditworthiness of the counterparties.

(p)衍生工具衍生工具指價值視乎一項或以上有

關資產或指數而定之財務合約。衍

生工具包括本集團及本銀行於外匯、

利率及股票市場承擔之期貨、遠期、

掉期及期權合約。

衍生工具之計算方法須視乎該等交

易是否作為買賣用途或資產及負債

組合管理之部份而定。

(i) 用作買賣用途之衍生工具

買賣交易包括就市場莊家活動、

服務客戶所需及自營買賣目的

以及作為任何有關對沖而進行

之交易。

用作買賣用途之交易按市價計

值，而所產生之收益或虧損，

經撥付遞延未賺信貸保證金及

日後服務費後於收益表中確認

為買賣溢利或虧損。該等交易

之未變現收益計入資產負債表

之「應計利息及其他帳目」內。

該等交易之未變現虧損計入「其

他帳目及撥備」。倘有合法抵銷

權，則可予對銷計算淨額。

並非於交易所買賣之衍生工具

之公平價值，經考慮目前市況

及交易對方目前之信譽後按假

設於結算日終止合約時本集團

可收取或支付之金額估計。




(p) Derivatives (continued)

(ii) Derivatives used for asset and liability management purposes

Derivatives that qualify as hedges are valued on an equivalent basis to the

underlying assets, liabilities or net positions which they are hedging. Any

profit or loss is recognised on the same basis as that arising from the related

assets, liabilities or net positions.

A hedging relationship exists when

– at inception of the hedge there is formal documentation of the hedge;

– the hedge is expected to be highly effective;

– the effectiveness of the hedge can be reliably measured;

– the hedge is highly effective throughout the reporting period; and

– for hedges of a forecast transaction, the transaction is highly probable

and presents an exposure to variations in cash flows that could

ultimately affect net profit or loss.

Interest rate swaps are also used to alter synthetically the interest rate

characteristics of financial instruments. Interest rate swaps that qualify as

synthetic alteration are accounted on an accruals basis with the related

income and expense treated as interest income or interest expense.

Any gain or loss on termination of hedging derivatives is amortised to the

income statement over the remaining original life of the terminated contract.

Where the underlying asset, liability or position is sold or terminated, the

hedging derivative is redesignated as trading and is marked to market

through the income statement. Netting is applied where a legal right of set-

off exists.

(p)衍生工具（續）(ii) 用作資產及負債管理目的之衍

生工具

合資格用作對沖之衍生工具按

有關資產、負債或持倉淨額之

同等基準估值。任何溢利或虧

損按有關資產、負債或持倉淨

額之相同基準確認。

在以下情況下出現對沖關係

－於對沖開始時，已有正式

對沖文件；

－預期對沖非敘有效；

－對沖之效力可可靠量度；

－於整個報告期間，對沖均

非敘有效；及

－就預測交易之對沖而言，該

交易極可能出現，且可能面

對現金流量之風險，因而最

終影響溢利或虧損淨額。

利率掉期亦被用作綜合變動金

融工具之利率特色。合資格作

為綜合變動之利率掉期按相對

收入或利息開支視作利息收入

或利息開支以應計基準列帳。

於終止對沖衍生工具時產生之

任何收益或虧損按已終止合約

之餘下原有年期於收益表中攤

銷。倘有關資產、負債或持倉

出售或終止，對沖衍生工具重

新分類為買賣，並透過收益表

按市價計值。倘出現合法抵銷

權，則可予對銷計算淨額。




(q) Provisions and contingent liabilitiesProvisions are recognised for liabilities of uncertain timing or amount when the

Group has a legal or constructive obligation arising as a result of a past event, it is

probable that an outflow of economic benefits will be required to settle the

obligation and a reliable estimate of the amount can be made. Where the time

value of money is material, provisions are stated at the present value of the

expenditure expected to settle the obligation.

Where it is not probable that an outflow of economic benefits will be required, or

the amount cannot be estimated reliably, the obligation is disclosed as a

contingent liability, unless the probability of outflow is remote. Possible

obligations, whose existence will only be confirmed by the occurrence or non-

occurrence of one or more future events are also disclosed as contingent liabilities

unless the probability of outflow of economic benefits is remote.

(r) Related partiesFor the purposes of these financial statements, parties are considered to be

related to the Group if the Group has the ability, directly or indirectly, to control

the party or exercise significant influence over the party in making financial and

operating decisions, or vice versa, or where the Group and the party are subject

to common control or common significant influence. Related parties may be

individuals or entities.

(s) Segment reportingA segment is a distinguishable component of the Group that is engaged in

providing services (business segment), or in providing services within a particular

economic environment (geographical segment), which is subject to risks and

rewards that are different from those of other segments.

In common with the Group’s internal financial reporting, the Group has chosen

business segment information as the primary reporting format and geographical

segment information as the secondary reporting format.

(q)撥備及或然負債撥備乃於本集團因過往事件引致之

法律或推定承擔而可能需要付出經

濟效益以解決承擔及能對此作出可

靠估計。倘貨幣時間價值乃屬重大，

撥備則以預計用以解決承擔之現值

開支列帳。

倘可能須付出經濟效益之需求，或

金額未能可靠估計，有關承擔則披

露為或然負債，除非付出經濟效益

之可能性是極微。僅在出現或不出

現一項或以上日後事故之情況下方

能確認之可能承擔亦披露為或然負

債，除非損失經濟利益之可能性是

極微。

(r) 關連各方按本財務報告的目的，若本集團有

能力直接或間接控制或重大影響該

方之財務及營運決策，或相反地該

方能控制及重大影響本集團，或兩

者互相控制及重大影響的情況下，

該方便被考慮為與本集團有關的關

連各方。關連各方可以為個人或機

構。

(s) 分項報告分項乃指本集團可區分之部分，包

括提供之服務（業務分項）或提供服

務之特定經濟環境（區域分項），均

受有別於其他分項之風險及利益所

限。

根據本集團之內部財務報告，本集

團選擇業務分項資料為主要報告形

式，而區域分項資料則為次選報告

形式。




(s) Segment reporting (continued)

Segment revenue, expenses, results, assets and liabilities include items directly

attributable to a segment as well as those that can be allocated on a reasonable

basis to that segment. For example segment assets may include loans and

advances to customers, investment securities, interbank placements, premises and

equipment. Segment revenue, expenses, assets and liabilities are determined

before intra-group balances and intra-group transactions are eliminated as part of

the consolidation process, except to the extent that such intra-group balances and

transactions are between group enterprises within a single segment. Inter-

segment pricing is based on similar terms as those available to other external

parties.

Segment capital expenditure is the total cost incurred during the period to acquire

segment assets (both tangible and intangible) that are expected to be used for

more than one period.

3 會計政策之改動Change in accounting policies

In prior years, deferred tax liabilities were provided using the liability method in respect

of the taxation effect arising from all material timing differences between the

accounting and tax treatment of income and expenditure, which were expected with

reasonable probability to crystallise in the foreseeable future. Deferred tax assets were

not recognised unless their realisation was assured beyond reasonable doubt. With

effect from 1 January 2003, in order to comply with the revised Statement of Standard

Accounting Practice 12 issued by the HKSA, the Group adopted a new policy for

deferred tax as set out in Note 2(l). As a result of the adoption of this accounting

policy, the Group’s profit for the year has been increased by HK$4,033,000 (2002 (as

restated): reduced by HK$4,894,000) and the net assets as at the year-end have been

increased by HK$948,000 (2002 (as restated): HK$1,449,000).

The new accounting policy has been adopted retrospectively, with the opening

balances of retained profits and reserves and the comparative information adjusted for

the amounts relating to prior periods as disclosed in the consolidated statement of

changes in equity.

(s) 分項報告（續）分項收益、開支、業績、資產及負

債均包括直接劃分入該區分項之項

目或可合理劃分為該項之項目。諸

如資產分項可包括客戶貸款、證券

投資、銀行同業放款、房地產及設

備。分項收益、開支、資產及負債

乃於集團間結算前釐定及集團間交

易，則予以抵銷作為綜合處理之部

分，惟集團企業間之有關集團間結

餘及交易乃為單一分項。分項間定

價乃按給予外間人士之相似條款釐

定。

分項資本開支乃指期內因收購預計

可使用超過一段時期之分項資產（包

括有形及無形資產）所產生之總成本。

於過往年度，遞延稅項負債乃就收入及

支出之會計及稅務處理間之所有重大時

差（預期合理地可能於可見將來實現）產

生之稅項影響以負債法計提撥備。遞延

稅項資產於在無合理疑問下保證可實現

時方予確認。由二零零三年一月一日起，

為符合香港會計師公會頒佈之經修訂會

計實務準則第12號，本集團就遞延稅項

採納新政策（見附註2(l)）。由於採納此項

會計政策，本集團於本年度之溢利增加

4,033,000港元（二零零二年（重報）：減

少4,894,000港元），而於年底之資產淨

值則上升948,000港元（二零零二年（重

報）：1,449,000港元）。

新會計政策已追溯應用，而保留溢利及

儲備之期初結餘以及比較資料已按股本

變動之綜合報告表所披露之前期數額調

整。



4 利息收入Interest income

本集團

The Group


2003 2002

千港元千港元

HK$’000 HK$’000

（重報）

(Restated)

上市投資之利息收入 Interest income on listed investments 13,715 80,580

非上市投資之利息收入 Interest income on unlisted investments 149,225 68,956

其他利息收入 Other interest income 784,846 958,172

947,786 1,107,708

5 其他營運收入Other operating income

本集團

The Group


2003 2002

千港元千港元

HK$’000 HK$’000

（重報）

(Restated)

費用及佣金收入 Fees and commission income 127,495 142,525

減：費用及佣金支出 Less: Fee and commission expense (8,879) (9,483)

費用及佣金收入淨額 Net fees and commission income 118,616 133,042

上市投資之股息收入 Dividend income from listed investments 1,314 1,160

非上市投資之股息收入 Dividend income from unlisted investments 3,360 2,630

外匯交易收入減虧損 Gains less losses from dealing in foreign currencies 13,645 8,821

證券買賣交易收入減虧損 Gains less losses from dealing in trading securities 2,899 1,922

其他買賣交易收入減虧損 Gains less losses from other dealing activities 39,572 4,308

租金收入 Rental income 13,266 12,313

其他 Others 9,255 9,698

201,927 173,894



6 營運支出Operating expenses

The major items which comprise operating expenses are as follows:

本集團

The Group


2003 2002

千港元千港元

HK$’000 HK$’000

僱員成本 Staff costs

定額供款計劃供款 Contributions to defined

contribution scheme 407 283

定額福利計劃支出 Defined benefit scheme expense

（附註34） (Note 34) 11,969 11,264

退休成本 Retirement costs 12,376 11,547

薪金及其他僱員成本 Salaries and other staff costs 225,099 213,799

237,475 225,346

房地產及其他固定資產 Premises and other fixed assets

－房地產租金 – Rental of premises 19,529 17,799

－折舊 – Depreciation 54,919 53,606

－其他 – Others 15,154 14,150

核數師酬金 Auditors’ remuneration 1,626 1,353

其他營運支出 Other operating expenses

－業務推廣 – Business promotion 24,019 21,493

－法律顧問費用 – Legal and professional fees 16,239 13,980

－通訊 – Communication 17,396 16,485

－電子資料處理及電腦系統 – Electronic data processing

and computer systems 59,287 54,587

－其他 – Others 43,200 38,066

488,844 456,865

主要營運支出載列如下：



7 董事酬金Directors’ remuneration

(a) The aggregate remuneration of the directors disclosed pursuant to section 161 of

the Hong Kong Companies Ordinance is as follows:

本集團

The Group


2003 2002

千港元千港元

HK$’000 HK$’000

董事袍金* Directors’ fees* 6,017 3,355

底薪及其他津貼 Basic salaries and other allowances 14,822 14,823

退休金供款 Contributions to pension scheme 1,068 984

酌情花紅 Discretionary bonuses 2,059 1,981

23,966 21,143

Included in directors’ remuneration were fees of HK$2,987,315* (2002:

HK$1,290,666) paid and payable to the independent non-executive directors in

respect of the year.

* The increase in directors’ fees was mainly attributable to the set up of the

Independent Board Committee to consider the terms of acquisition of the

Bank offered by Fubon Financial and make recommendations to the

shareholders of the Bank. Members of the Independent Board Committee are

entitled to remuneration of HK$1,050,000 in aggregate. The remaining

difference in directors’ fees resulted from a change in remuneration

arrangements in August 2002 which had the effect of reducing the fees

accrued in 2002 to HK$1,290,666 from HK$2,030,067 in 2001.

(a) 根據香港《公司條例》第161條規定

披露之董事酬金總額如下：

本年度已付及應付獨立非執行董事

之袍金合共2,987,315*港元（二零零

二年：1,290,666港元）納入董事酬

金內。

* 董事袍金增加，主要由於成立獨

立董事委員會，以考慮由富邦金

控提出收購本銀行之條款及向本

銀行股東提供推薦意見所致。獨

立董事委員會成員可獲取酬金合

共1,050,000港元。董事袍金餘下

之差額乃由於二零零二年八月薪

酬安排有所變動而產生，有關變

動導致於二零零二年之應計袍金

由於二零零一年之2,030,067港元

降至1,290,666港元。



7 董事酬金（續）Directors’ remuneration (continued)

(b) The number of directors of the Bank whose total remuneration fell within the

following defined bands are as follows:

本集團

The Group


2003 2002

無－1,000,000港元 HK$nil – HK$1,000,000 7 8

1,000,001港元－1,500,000港元 HK$1,000,001 – HK$1,500,000 1 0

5,500,001港元－6,000,000港元 HK$5,500,001 – HK$6,000,000 0 1

6,000,001港元－6,500,000港元 HK$6,000,001 – HK$6,500,000 1 0

12,500,001港元－13,000,000港元 HK$12,500,001 – HK$13,000,000 1 1

8 薪酬最高人士Individuals with highest emoluments

(a) Among the five individuals whose emoluments were the highest in the Group,

two (2002: two) were directors of the Bank whose emoluments are disclosed in

Note 7. The aggregate emoluments of the remaining three (2002: three) highest

paid individuals were as follows:

本集團

The Group


2003 2002

千港元千港元

HK$’000 HK$’000

底薪及其他津貼 Basic salaries and other allowances 8,504 7,814

退休計劃供款 Contributions to pension scheme 774 623

花紅 Bonuses 1,879 1,863

11,157 10,300

(b) 本集團董事之酬金總額的人數分佈

如下：

(a) 本集團薪酬最高之5位人士中，2位

（二零零二年：2位）為本銀行之董

事，其薪酬已於附註7披露，餘下

薪酬最高之3位（二零零二年：3位）

人士之酬金總額如下：



8 薪酬最高人士（續）Individuals with highest emoluments (continued)

(b) The number of the three (2002: three) highest paid non-director employees of the

Group whose total emoluments fell within the following bands are as follows:

本集團

The Group


2003 2002

千港元千港元

HK$’000 HK$’000

2,500,001港元－3,000,000港元 HK$2,500,001 – HK$3,000,000 0 1

3,000,001港元－3,500,000港元 HK$3,000,001 – HK$3,500,000 1 0

3,500,001港元－4,000,000港元 HK$3,500,001 – HK$4,000,000 1 2

4,000,001港元－4,500,000港元 HK$4,000,001 – HK$4,500,000 1 0

9 壞帳及呆帳準備金調撥Charge for bad and doubtful debts

本集團

The Group


2003 2002

千港元千港元

HK$’000 HK$’000

一般準備金 General provision

－貿易票據（附註19） – Trade bills (Note 19) 3 30

－客戶貸款（附註20） – Advances to customers (Note 20) (3,310) (37,846)

(3,307) (37,816)

特別準備金 Specific provision

－客戶貸款之特別準備金 – Net specific provision on advances

淨額（附註20） to customers (Note 20) 190,020 376,791

186,713 338,975

(b) 本集團薪酬最高之3位（二零零二年：

3位）非董事僱員之酬金總額人數公

佈如下：



10 投資及根據貸款協議所得資產之撥備Provision for investments and assets acquired underlending agreements

本集團

The Group


2003 2002

千港元千港元

HK$’000 HK$’000

投資減值虧損撥回 Write back of impairment loss

on investments 0 (3,471)

根據貸款協議所得 Provision for assets acquired under

　資產之撥備 lending agreements 71,463 35,734

71,463 32,263

11 出售非持作買賣用途證券之收益減虧損Gains less losses from disposal of non-trading securities

本集團The Group

二零零三年二零零二年2003 2002

千港元千港元HK$’000 HK$’000

前期已於重估儲備內確認之 Realisation of revaluation surplus/(deficit)

重估盈餘／（虧損）之變現 previously recognised in revaluation reserve

（附註31） (Note 31) 2,210 (3,854)

年內利潤淨額 Net gain arising in current year 88,686 174,209

90,896 170,355



12 稅項Taxation

本集團The Group



現稅項－香港利得稅準備* Current tax – Provision for Hong Kong

Profits Tax*

年內稅項 Tax for the year 13,698 5,053

過去年度之尚欠／（過多）準備 Under/(Over)-provision in respect of prior years 1,914 (8,523)

15,612 (3,470)

遞延稅項 Deferred tax

暫時性差異產生及轉回 Origination and reversal of temporary

differences (3,534) 4,894

於一月一日因稅率增加對遞延稅項 Effect of increase in tax rate on deferred tax

結餘之影響 balances at 1 January (499) 0

(4,033) 4,894

所得稅支出總額 Total income tax expense 11,579 1,424



12 稅項（續）Taxation (continued)

Reconciliation between tax expense and accounting profit at applicable

tax rate

本集團

The Group二零零三年二零零二年

2003 2002



稅前溢利之估計稅項，以稅務司法 Notional tax on profit before tax, calculated

適用之應課稅率計算* at the rates applicable to profits in the

tax jurisdictions concerned* 26,201 35,499

非應課稅項收入之稅項影響 Tax effect on non-taxable revenue (18,709) (26,554)

非可扣減支出之稅項影響 Tax effect on non-deductible expenses 2,672 1,002

於一月一日因稅率增加對遞延稅項 Effect of increase in tax rate on deferred tax

結餘之影響 balances at 1 January (499) 0

過去年度之尚欠／（過多）準備 Under/(Over)-provision in prior years 1,914 (8,523)

實質稅項支出 Actual tax expense 11,579 1,424

* In March 2003, the Hong Kong Government announced an increase in the Profits Tax

rate applicable to the Group’s operations in Hong Kong from 16% to 17.5%. This

increase is taken into account in the preparation of the Group’s 2003 financial

statements. Accordingly, the provision for Hong Kong Profits Tax for 2003 is calculated

at 17.5% (2002: 16%) of the estimated assessable profits for the year.

稅項支出與適用應課稅率計算之會計溢

利間之對帳

* 於二零零三年三月，香港政府宣佈本

集團在香港經營業務之利得稅由16%

增加至17.5%。這項增幅已於編製二零

零三年度本集團財務報告時列入帳目

內。二零零三年度之香港利得稅準備

因而按評估應課稅溢利之17.5%（二零

零二年：16%）計算。



13 股息Dividends

股息宣派及派發 Dividends declared and proposed本集團

The Group二零零三年二零零二年

2003 2002千港元千港元

HK$’000 HK$’000

已宣派中期股息每股4.00仙 Interim dividend declared and paid of（二零零二年：4.00仙） 4.00 cents (2002: 4.00 cents) per share 46,886 46,886年內已宣派特別股息26.00仙 Special dividend declared during the year（二零零二年：無）* of 26.00 cents (2002: Nil cent) per share* 304,762 0末期股息每股零仙 Final dividend of Nil cent（二零零二年：於二零零三年 (2002: proposed on 25 February 2003,二月二十五日建議派發每股8.00仙） of 8.00 cents) per share 0 93,773

351,648 140,659

Dividends attributable to the previous financial year, approved and paid during the year

本集團The Group



上一財政年度於年內通過及 Final dividend in respect of the previous派發之末期股息每股8.00仙 financial year, approved and paid during（二零零二年：7.00仙） the year, of 8.00 cents

(2002: 7.00 cents) per share 93,773 82,051

* A Board resolution was passed on 19 December 2003 to declare a special interimdividend for 2003 of HK$0.26 per share subject to the satisfaction (or, ifapplicable, waiver) of the Relevant Pre-Conditions (as referred to in the jointannouncement dated 6 December 2003 made by the Bank and Fubon Financial).This special interim dividend is not recognised as a dividend payable in thesefinancial statements. On 10 February 2004, these Pre-Conditions were satisfiedand the special interim dividend totalling HK$304,761,600 was paid on 16

February 2004.

上一財政年度於年內通過及派發之應佔

股息

* 於二零零三年十二月十九日通過董

事會決議案宣派二零零三年特別中

期股息每股0.26港元，惟須待有關先

決條件（定義見本銀行與富邦金控）

於二零零三年十二月六日刊發之聯

合公佈）達成後（或獲豁免（如適用））

方可作實。由於此特別中期股息未

於該等財務報表中確認為應付股息。

於二零零四年二月十日，該等先決

條件已達成，而特別中期股息合共

304,761,600港元已於二零零四年二

月十六日派付。



14 每股盈利Earnings per share

Earnings per share are calculated on profit attributable to shareholders of

HK$138,138,000 (2002 (restated): HK$220,444,000) and on 1,172,160,000 (2002:

1,172,160,000) ordinary shares in issue during the year. There are no convertible loan

capital, options or warrants outstanding which would cause a dilution effect on

earnings per share.

15 股東應佔溢利Profit attributable to shareholders

The consolidated profit attributable to shareholders includes a profit of HK$111,260,000

(2002 (restated): HK$211,138,000) which has been dealt with in the financial

statements of the Bank.

每股盈利乃按年內股東應佔溢利

138,138,000港元（二零零二年（重報）：

220,444,000港元）及於年內已發行普通

股份1,172,160,000股（二零零二年：

1,172,160,000股）計算。銀行並無任何

可兌換之資本貸款、期權或可兌換認股

證以致對每股盈利構成攤薄之影響。

股東應佔綜合溢利包括已計入銀行財務

報告內有關之溢利111,260,000港元（二

零零二年（重報）：211,138,000港元）。



16 分項資料Segment reporting

Segment information is presented in respect of the Group’s business and geographical

segments. Business segment information is chosen as the primary reporting format

because substantially all of the Group’s business is attributable to a single geographical

segment, Hong Kong.

The Bank and its subsidiaries are principally engaged in the provision of banking and

related financial services.

Consumer Banking mainly comprises the retail banking, hire purchase and credit card

businesses. Retail banking mainly comprises deposit account services, residential

mortgage and other consumer lending. Hire purchase lending includes both personal

and corporate equipment, auto and other consumer leasing contracts and lending.

Credit card business comprises merchant acquiring and provision of credit card

advances.

Corporate Banking business covers trade financing, syndicated loans and other

corporate lending.

Investment Banking activities mainly comprise private banking activities, securities

brokerage, unit trusts and insurance services.

Treasury activities are mainly the provision of foreign exchange services and centralised

cash management for deposit taking and lending, management of trading securities,

execution of management’s investment strategies in money market investment

instruments and the overall funding of the Group.

Real Estate is responsible for the management and orderly realisation of the Group’s

repossessed properties and properties acquired under lending agreements.

Unallocated items mainly comprise the central management unit, management of

investments in securities, premises and property management and other activities

which cannot be reasonably allocated to specific business segments.

分項資料乃根據本集團的業務及區域分

類編製。由於集團之全部業務大體上集

中在香港單一區域內，業務分項被揀選

為基本報告形式。

本銀行及其附屬公司之主要業務為銀行

經營及有關之財務服務。

零售消費銀行業務主要包括零售銀行業

務、租購及租賃業務及信用卡業務。零

售銀行業務主要包括存款戶口服務、住

宅按揭及其他消費借貸。租購及租賃項

目包括私人及企業設備，車輛及其他消

費租賃合約及借貸。信用卡業務包括商

戶服務及信用卡信貸服務。

企業銀行業務涵蓋貿易融資、銀團貸款

及其他企業借貸。

投資銀行業務主要包括私人銀行業務、

證券買賣、單位信託及保險服務。

財資活動包括外匯交易服務及存款和借

貸之中央現金管理、證券交易活動管理，

按管理層投資策略在貨幣市場進行投資

與及本集團之整體資金管理。

物業管理業務包括管理及出售本集團收

回及根據貸款協議所得之物業。

其他未被分配的項目主要包括中央管理

單位，證券投資管理，房地產及物業管

理及其他未能合適地分配於特定業務的

活動。



16 分項資料（續）Segment reporting (continued)

本集團The Group

零售消費 ** 物業管理跨業務銀行企業銀行投資銀行業務轉帳

Consumer Corporate Investment 財資 ** Real * 未分類業務 Inter-segment 總額Banking Banking Banking Treasury Estate * Unallocated Elimination Consolidated

二零零三年 2003 千港元千港元千港元千港元千港元千港元千港元千港元HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

源自外界客戶利息收入 Interest income from external customers 543,056 95,460 27,554 273,122 0 8,594 0 947,786給予外界客戶利息支出 Interest expense to external customers (253,920) (26,732) (22,605) (38,848) 0 (1,767) 0 (343,872)跨業務收入 Inter-segment income 279,548 0 20,918 0 0 0 (300,466) 0跨業務支出 Inter-segment expense (45,549) (18,398) 0 (199,875) (13,437) (23,207) 300,466 0

淨利息收入 Net interest income 523,135 50,330 25,867 34,399 (13,437) (16,380) 0 603,914源自外界客戶其他營運盈利 Other operating revenue from external customers 84,382 14,111 56,961 35,552 12,293 7,507 210,806跨業務溢利 Inter-segment revenue 0 0 0 0 0 35,153 (35,153) 0費用及佣金支出 Fees and commission expenses (596) (72) (1,354) (6,327) 0 (530) (8,879)

其他營運收入 Other operating income 83,786 14,039 55,607 29,225 12,293 42,130 201,927

營運收入 Operating income 606,921 64,369 81,474 63,624 (1,144) 25,750 805,841

營運支出 Operating expenses (266,420) (37,934) (46,518) (34,262) 0 (103,710) (488,844)跨業務支出 Inter-segment expenses (31,186) (1,041) (2,263) (663) 0 0 35,153 0

撥備及收益前經營 Operating profit/(loss)　溢利／（虧損） before provisions and gains 309,315 25,394 32,693 28,699 (1,144) (77,960) 316,997壞帳及呆帳撥備 Charge for bad and doubtful debts (163,616) (20,056) (2,225) 0 0 (816) (186,713)根據貸款協議所得資產 Provision for assets acquired　之撥備 under lending agreements 0 0 0 0 (71,463) 0 (71,463)出售非持作買賣用途之 Gains less losses from disposal of　證券收益減虧損 non-trading securities 0 0 0 90,896 0 0 90,896

除稅前溢利／（虧損） Profit/(loss) before taxation 145,699 5,338 30,468 119,595 (72,607) (78,776) 149,717

所得稅 Income tax 0 0 0 0 0 (11,579) (11,579)

股東應佔溢利／（虧損） Profit/(Loss) attributable to shareholders 145,699 5,338 30,468 119,595 (72,607) (90,355) 138,138

營運支出－折舊 Operating expenses – depreciation (14,670) (162) (3,455) (1,682) 0 (34,950) (54,919)

業務資產 Segment assets 11,656,153 3,597,048 1,260,931 19,889,104 557,792 36,961,028未分類資產 * Unallocated assets * 927,780

總資產 Total assets 37,888,808

業務負債 Segment liabilities 24,699,838 2,737,924 2,653,525 3,893,297 0 33,984,584未分類負債 * Unallocated liabilities * 120,053

總負債 Total liabilities 34,104,637

年度內資本開支 Capital expenditure incurred during the year 7,308 2,253 790 12,460 0 22,811




本集團The Group

零售消費 ** 物業管理跨業務銀行企業銀行投資銀行業務轉帳

Consumer Corporate Investment 財資 ** Real * 未分類業務 Inter-segment 總額Banking Banking Banking Treasury Estate * Unallocated Elimination Consolidated

二零零二年 2002 千港元千港元千港元千港元千港元千港元千港元千港元HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

源自外界客戶利息收入 Interest income from external customers 638,870 153,529 27,840 275,650 0 11,819 0 1,107,708給予外界客戶利息支出 Interest expense to external customers (286,407) (37,044) (18,737) (56,360) 0 (3,438) 0 (401,986)跨業務收入 Inter-segment income 283,033 6,016 9,411 0 0 20,736 (319,196) 0跨業務支出 Inter-segment expense (74,199) (55,048) 0 (177,377) (12,572) 0 319,196 0

淨利息收入 Net interest income 561,297 67,453 18,514 41,913 (12,572) 29,117 0 705,722源自外界客戶其他營運盈利 Other operating revenue from external customers 82,799 14,622 52,477 14,067 8,799 10,613 183,377跨業務溢利 Inter-segment revenue 0 0 0 0 0 43,494 (43,494) 0費用及佣金支出 Fees and commission expenses (2,092) (96) (942) (52) 0 (6,301) (9,483)

其他營運收入 Other operating income 80,707 14,526 51,535 14,015 8,799 47,806 173,894

營運收入 Operating income 642,004 81,979 70,049 55,928 (3,773) 76,923 879,616

營運支出 Operating expenses (274,789) (47,451) (32,703) (12,353) 0 (89,569) (456,865)跨業務支出 Inter-segment expenses (34,269) (1,345) (7,104) (776) 0 0 43,494 0

撥備及收益前經營 Operating profit/(loss)　溢利／（虧損） before provisions and gains 332,946 33,183 30,242 42,799 (3,773) (12,646) 422,751壞帳及呆帳撥備 Charge for bad and doubtful debts (285,205) (51,488) 88 45 0 (2,415) (338,975)投資及根據貸款協議所得資產 Provision for investments and assets acquired　之撥備 under lending agreement 0 0 0 0 (35,734) 3,471 (32,263)出售非持作買賣用途之 Gains less losses from disposal of　證券收益減虧損 non-trading securities 0 0 0 170,355 0 0 170,355

除稅前溢利／（虧損） Profit/(loss) before taxation 47,741 (18,305) 30,330 213,199 (39,507) (11,590) 221,868

所得稅 Income Tax 0 0 0 0 0 (1,424) (1,424)

股東應佔溢利／（虧損） Profit/(Loss) attributable to shareholders 47,741 (18,305) 30,330 213,199 (39,507) (13,014) 220,444

營運支出－折舊 Operating expenses – depreciation (16,087) (187) (3,952) (577) 0 (32,803) (53,606)

業務資產 Segment assets 10,600,813 4,070,484 943,893 14,906,634 668,837 31,190,661未分類資產 * Unallocated assets * 1,123,273

總資產 Total assets 32,313,934

業務負債 Segment liabilities 18,855,759 1,767,603 1,318,640 6,379,727 0 28,321,729未分類負債 * Unallocated liabilities * 224,821

總負債 Total liabilities 28,546,550

年度內資本開支 Capital expenditure incurred during the year 13,873 5,327 1,235 19,509 0 39,944




* Unallocated items mainly comprise interest income derived from shareholders’ funds

not used by the business segments, staff housing loans and the related interest income

and funding costs, staff deposits and the related interest expenses and the head office

premises, furniture, fixtures and equipment and the related depreciation.

** The losses for the year ended 31 December 2003 and 2002 incurred by Real Estate

were mainly caused by the decline in value of the properties acquired under lending

agreements during the year.

Geographical segmentsThe geographical segmental analysis is based on the locations of the principal

operations of the subsidiaries or on the location of the branches of the Bank

responsible for reporting the results or booking the assets, the location of customers

and the location of assets. For the year ended 31 December 2003 and 2002, all of the

Group’s operating income and profit before taxation were generated by assets booked

by the principal operations of the branches and subsidiaries of the Bank located in

Hong Kong. More than 90% of assets were either located in Hong Kong or were

extended to companies and individuals domiciled in Hong Kong. The balance of the

assets were extended to companies and individuals domiciled outside Hong Kong,

mainly in China.

* 未分類項目主要包涵由股東資金產

生之利息收入。該等資金未被各業

務、員工按揭貸款及有關利息收入

及資金開支、員工存款和有關利息

支出；以及總辦事處物業使用、傢

俬、裝置及設備和有關之折舊。

** 截至二零零三年及二零零二年十二

月三十一日止年度，由於年度內根

據貸款協議所得物業之格價下跌，

引致物業管理業務面對虧損。

區域分項區域分項之資料分析是根據附屬公司之

主要業務所在地點，或按負責報告業績

或將資產入帳之本銀行分行位置、客戶

位置及資產位置予以披露。於截至二零

零三年及二零零二年十二月三十一日止

年度，本集團之所有營運收入及除稅前

溢利也是從位於香港的本銀行附屬公司

及分行入帳之資產所產生。本銀行多於

90%的資產是位於香港或借給以香港為

基地的公司及個人客戶，而剩餘的資產

是借給位於香港以外（以中國為主）的公

司及個人客戶。



17 短期資金Short term funds

本集團本銀行

The Group The Bank

二零零三年二零零二年二零零三年二零零二年

2003 2002 2003 2002

千港元千港元千港元千港元

HK$’000 HK$’000 HK$’000 HK$’000

銀行同業和其他金融機構結餘 Balances with banks

and other financial institutions 318,340 153,055 317,990 152,547

通知及短期存款* Money at call and short notice* 6,156,206 6,395,418 6,156,206 6,395,418

國庫券（包括外匯基金票據） Treasury bills (including

Exchange Fund Bills) 626,515 5,568,065 626,515 5,568,065

7,101,061 12,116,538 7,100,711 12,116,030

* Money at call and short notice represents deposits of up to a maximum of 1-month

maturity from the balance sheet date.

Treasury bills are issued by central governments and central banks and are unlisted. The

analysis of treasury bills is as follows:

本集團及本銀行

The Group and the Bank


2003 2002

千港元千港元

HK$’000 HK$’000

國庫券 Treasury bills

－作買賣用途 – Trading 626,515 1,699,190

－非作買賣用途 – Non-trading 0 3,868,875

626,515 5,568,065

* 通知及短期存款代表於結算日最長一

個月到期之存款。

國庫券由中央政府及中央銀行發行，並

為非上市項目，有關國庫券之分析如下：



17 短期資金（續）Short term funds (continued)

The maturity profile of treasury bills included above and analysed by the remaining

period at the balance sheet date to the contractual maturity date is as follows:




2003 2002

千港元千港元

HK$’000 HK$’000

三個月以下惟無需即時還款 3 months or less but not

repayable on demand 626,515 5,221,050

一年以下惟三個月以上 1 year or less but over 3 months 0 347,015

626,515 5,568,065

18 一至十二個月到期之銀行同業放款Placements with banks maturing between one andtwelve months

The maturity profile analysed by the remaining period at the balance sheet date to the

contractual maturity date is as follows:




2003 2002

千港元千港元

HK$’000 HK$’000

三個月以下惟一個月以上 3 months or less but over 1 month 1,525,929 558,358

一年以下惟三個月以上 1 year or less but over 3 months 0 176,672

1,525,929 735,030

以上國庫券按結算日至合約訂明到期日

之剩餘期限劃分之期限組別如下：

按結算日至合約訂明到期日之剩餘期限

劃分之期限組別：



19 貿易票據減準備及存款證Trade bills less reserves and certificates of deposit




2003 2002

千港元千港元

HK$’000 HK$’000

貿易票據 Trade bills 13,195 13,900

減：一般準備 Less: General reserves (94) (91)

13,101 13,809

存款證 Certificates of deposit

一非上市，非持作買賣用途 – unlisted, non-trading 378,936 277,411

392,037 291,220






2003 2002

千港元千港元

HK$’000 HK$’000

三個月以下惟 3 months or less but not

無需即時還款 repayable on demand 37,153 43,900

一年以下惟三個月以上 1 year or less but over 3 months 171,174 153,425

五年以下惟一年以上 5 years or less but over 1 year 183,804 93,986

392,131 291,311





19 貿易票據減準備及存款證（續）Trade bills less reserves and certificates ofdeposit (continued)

Movements in general reserves for trade bills:




2003 2002

千港元千港元

HK$’000 HK$’000

於一月一日 At 1 January 91 61

年內存備（附註9 ） Charged during the year (Note 9) 3 30

於十二月三十一日 At 31 December 94 91

20客戶貸款減準備Advances to customers less reserves

本集團本銀行

The Group The Bank


2003 2002 2003 2002


HK$’000 HK$’000 HK$’000 HK$’000

客戶貸款 Advances to customers 15,768,144 15,161,583 13,306,051 12,783,264

呆帳準備 Reserves for doubtful debts

－一般 – General (126,145) (129,455 ) (106,463) (108,091 )

－特別 – Specific (75,567) (70,699 ) (54,282) (46,161 )

15,566,432 14,961,429 13,145,306 12,629,012

貿易票據之一般呆帳準備變動：



20客戶貸款減準備（續）Advances to customers less reserves (continued)



本集團本銀行

The Group The Bank


2003 2002 2003 2002


HK$’000 HK$’000 HK$’000 HK$’000

即時還款 Repayable on demand 741,875 1,003,297 733,788 992,554

三個月以下惟 3 months or less but not

無需即時還款 repayable on demand 2,023,311 1,703,514 1,692,906 1,389,195

一年以下惟三個月以上 1 year or less but over 3 months 1,940,298 1,838,818 1,145,182 1,070,302

五年以下惟一年以上 5 years or less but over 1 year 4,352,069 4,722,613 3,304,785 3,757,959

超過五年 Over 5 years 6,300,559 5,583,238 6,097,640 5,341,399

無註明日期 Undated 410,032 310,103 331,750 231,855

15,768,144 15,161,583 13,306,051 12,783,264

Movements in general reserves for advances to customers:

本集團本銀行

The Group The Bank


2003 2002 2003 2002


HK$’000 HK$’000 HK$’000 HK$’000

於一月一日 At 1 January 129,455 167,301 108,091 167,301

年內撥回（附註9） Written-back during

the year (Note 9) (3,310) (37,846) (1,628) (59,210)

於十二月三十一日 At 31 December 126,145 129,455 106,463 108,091



客戶貸款之一般呆帳準備變動：




Movements in specific reserves for advances to customers:

本集團本銀行

The Group The Bank


2003 2002 2003 2002


HK$’000 HK$’000 HK$’000 HK$’000

於一月一日 At 1 January 70,699 178,620 46,161 170,850

收益表內淨存備 Net charge to income statement

－新增準備金 – New provisions charged 201,429 397,080 168,971 344,285

－準備金減少 – Provisions released (11,409) (20,289) (7,700) (20,068)

190,020 376,791 161,271 324,217

承過去年度已撇帳 Recoveries of advances written

　貸款之收回 off in previous years 9,612 12,561 5,903 12,340

撇帳金額 Amounts written off (194,764) (497,273 ) (159,053) (461,246 )


Movements in interest suspended:

本集團本銀行

The Group The Bank


2003 2002 2003 2002


HK$’000 HK$’000 HK$’000 HK$’000

於一月一日 At 1 January 34,257 93,497 34,257 93,497

年內利息懸帳 Interest suspended during the year 6,805 510 6,086 510

利息懸帳撇帳 Suspended interest written off (7,177) (59,750) (7,177) (59,750)


客戶貸款之特別呆帳準備變動：

利息懸帳變動：




Total advances on which interest is being placed in suspense or on which interest

accrual has ceased (“Non-performing advances”):

The non-performing advances, together with the aggregate amount of specific

reserves held and amount of collateral held in respect of such advances are as follows:


十二月三十一日十二月三十一日

As at As at

31 December 2003 31 December 2002

千港元百分比千港元百分比

HK$’000 i% HK$’000 i%

不履行合約貸款 ii Non-performing advancesii

－重定還款期 – Rescheduled 85,631 0.54 8,694 0.06

－其他 – Others 314,252 1.99 253,698 1.67

399,883 2.53 262,392 1.73

就不履行合約撥出 Amount of specific reserves held

之特別準備數額 against non-performing

advances 73,138 55,735

就不履行合約持有 Amount of collateral held in

之抵押品價值 iii respect of non-performing

advancesiii 301,247 168,516

374,385 224,251

利息懸帳 Amount of interest suspended 33,885 34,257

i. As a percentage of gross advances to customers

ii. Net of suspended interest.

iii. Including expected recoveries of HK$10.42 million (2002: HK$11.73 million) from

companies in liquidation.

利息懸帳或停止累計之客戶貸款總額（「不

履行合約貸款」）：

不履行合約貸款就該等貸款已撥出之特

別準備數額及銀行所持有之抵押品價值

如下：

i. 作為客戶貸款總額之百份比。

ii. 淨懸帳利息

iii. 包括預期可從清盤中公司收回之10,420,000

港元（二零零二年：11,730,000 港元）。




Finance leases

Advances to customers include net investment in motor vehicles and equipment leased

to customers under finance leases and hire purchase contracts having the characteristics

of finance leases. The contracts usually run for an initial period of 3 to 5 years, with an

option for acquiring the leased asset at nominal value. The total minimum lease

payments receivable under finance leases and hire purchase contracts and their present

values at the year end are as follows:

本集團

The Group


2003 2002

千港元千港元

HK$’000 HK$’000

最低租賃還款總金額： Total minimum lease payments due:

－一年以內 – Within 1 year 998,911 1,072,072

－一年以後惟五年以內 – After 1 year but within 5 years 1,102,299 993,103

－五年以後 – After 5 years 388,093 464,052

2,489,303 2,529,227

相關未來之未賺取 Unearned finance income relating to

融資收入 future periods (476,341) (547,868)

2,012,962 1,981,359

呆帳準備金 Provision for doubtful debts 0 0

不保證剩餘價值 Unguaranteed residual value (2) (2)

最低租賃還款現價值 Present value of the minimum

lease payment receivable 2,012,960 1,981,357

* All finance leases of the Group are handled by a wholly-owned subsidiary.

融資租賃

給予客戶之貸款包括根據融資租賃及具

融資租賃特性之租購合約租予客戶之汽

車及設備投資淨額。合約初步一般為期

三至五年，附帶以設定之價格購買有關

租用資產之選擇權。根據融資租賃及租

購合約應收之最低租賃還款總金額及於

年結日之現值如下：

* 本集團之融資租賃項目由全資附屬公

司處理。




The maturity profile of the present value of the minimum lease payments before

provisions is as follows:

本集團

The Group


2003 2002

千港元千港元

HK$’000 HK$’000

一年以內 within 1 year 832,041 882,150

一年以後惟五年以內 After 1 year but within 5 years 922,313 804,650

五年以後 After 5 years 258,608 294,559

2,012,962 1,981,359

撥備前最低租賃還款現價值的期限組別：



21 資產負債表內的所得稅Income tax in the balance sheet

(a) Current tax receivable and payable included in “Accrued interest and other

accounts” and “Other accounts and liabilities” respectively in the balance sheets

represent:

本集團本銀行

The Group The Bank


2003 2002 2003 2002


HK$’000 HK$’000 HK$’000 HK$’000

年度之香港利得稅準備 Provision for Hong Kong Profits

Tax for the year 13,698 5,053 0 67

己付暫繳利得稅 Provisional Profits Tax paid (4,822) (7,629) 0 (4,622)

8,876 (2,576) 0 (4,555)

承過去年度利得稅準備結餘 Balance of Profits Tax provision

relating to prior years (5,647) 300 (3,881) 0

3,229 (2,276) (3,881) (4,555)

代表： Representing:

香港利得稅退回 Hong Kong Profits Tax

Recoverable (5,736) (4,608) (3,881) (4,555)

香港利得稅準備 Provision for Hong Kong

Profits Tax 8,965 2,332 0 0

3,229 (2,276) (3,881) (4,555)

The amount of taxation recoverable and payable is expected to be settled within 1

year.

(a) 分別於資產負債表「應計利息及其

他帳目」及「其他帳目及負債」列帳

之現應收稅款及應繳稅款指：

可收回及應繳稅項金額預計於一年內清

算。



21 資產負債表內的所得稅Income tax in the balance sheet (continued)

(b) Deferred tax assets and liabilities recognised

Deferred tax assets and liabilities are included in “Accrued interest and other

accounts” and “Other accounts and liabilities” respectively in the balance sheet.

The components of deferred tax assets/(liabilities) recognised in the balance sheet

and the movements during the year are as follows:

THE GROUP

超過有關貸款虧損非持作

折讓的折舊定額福利之買賣用途

免稅額計劃資產一般儲備之證券重估

Depreciation Defined General Revaluation 房地產重估

allowances in benefit reserves 稅項虧損 of non- Revaluation

excess of related scheme for Tax trading of 總額

depreciation assets loan losses losses securities premises Total

千港元千港元千港元千港元千港元千港元千港元

HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

於二零零二年一月一日（重報） At 1 January 2002 (restated) (13,811 ) (2,650 ) 26,778 0 2,916 (7,258 ) 5,975

綜合收益表之（支出） (Charged)/credited to consolidated

／進帳 income statement (443 ) 0 (6,050 ) 1,479 0 120 (4,894 )

儲備進帳（附註31） Credited to reserves (Note 31) 0 0 0 0 368 0 368

於二零零二年十二月三十一日（重報） At 31 December 2002 (restated) (14,254 ) (2,650 ) 20,728 1,479 3,284 (7,138 ) 1,449

於二零零三年一月一日（重報） At 1 January 2003 (restated) (14,254 ) (2,650 ) 20,728 1,479 3,284 (7,138 ) 1,449

綜合收益表之（支出） (Charged)/credited to consolidated

／進帳 income statement 2,316 (249 ) 1,365 470 0 131 4,033

儲備支出（附註31） Charged to reserves (Note 31) 0 0 0 0 (3,864 ) (670 ) (4,534 )

於二零零三年十二月三十一日 At 31 December 2003 (11,938 ) (2,899 ) 22,093 1,949 (580 ) (7,677 ) 948

(b) 被確認之遞延稅項資產及負債

遞延稅項資產及負債分別於資產負債表

「應計利息及其他帳目」及「其他帳目及

負債」內入帳。被確認之遞延稅項資產

／（負債）之組成部份及年內之變動如下：

本集團



21 資產負債表內的所得稅Income tax in the balance sheet (continued)

THE BANK

超過有關貸款虧損非持作

折讓的折舊定額福利之買賣用途

免稅額計劃資產一般儲備之證券重估

Depreciation Defined General Revaluation 房地產重估

allowances in benefit reserves 稅項虧損 of non- Revaluation

excess of related scheme for Tax trading of 總額

depreciation assets loan losses losses securities premises Total

千港元千港元千港元千港元千港元千港元千港元

HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

於二零零二年一月一日（重報） At 1 January 2002 (restated) (13,123) (2,650) 26,778 0 2,916 (7,258) 6,663

綜合收益表之（支出）／進帳 (Charged)/credited to

income statement (416) 0 (9,468) 1,479 0 120 (8,285)

儲備進帳（附註31） Credited to reserves (Note 31) 0 0 0 0 368 0 368

於二零零二年十二月三十一日（重報） At 31 December 2002 (restated) (13,539) (2,650) 17,310 1,479 3,284 (7,138) (1,254)

於二零零三年一月一日（重報） At 1 January 2003 (restated) (13,539) (2,650) 17,310 1,479 3,284 (7,138) (1,254)

綜合收益表之（支出）／進帳 (Charged)/credited to

income statement 2,388 (249) 1,338 470 0 131 4,078

儲備支出（附註31） Charged to reserves (Note 31) 0 0 0 0 (3,864) (670) (4,534)

於二零零三年十二月三十一日 At 31 December 2003 (11,151) (2,899) 18,648 1,949 (580) (7,677) (1,710)

本集團本銀行

The Group The Bank


2003 2002 2003 2002


HK$’000 HK$’000 HK$’000 HK$’000

於資產負債表內確認之遞延稅項資產淨額 Net deferred tax asset recognised

on the balance sheet 2,722 2,789 0 0

於資產負債表內確認之遞延稅項負債淨額 Net deferred tax liability recognised

on the balance sheet (1,774) (1,340) (1,710) (1,254)

948 1,449 (1,710) (1,254)

(c) Deferred tax assets and liabilities not recognised

The Group has no material unrecognised deferred tax asset and liability as at 31

December 2003 (2002: HK$Nil).

(c) 未被確認之遞延稅項資產及負債

本集團於二零零三年十二月三十一

日未有重大未被確認之遞延稅項資

產及負債（二零零二年：無）。

本銀行



22 證券投資Investments in securities

本集團本銀行

The Group The Bank


2003 2002 2003 2002


HK$’000 HK$’000 HK$’000 HK$’000

非持作買賣用途的證券之公平值 Non-trading securities at fair value

債務證券 Debt securities

　－於香港上市 – Listed in Hong Kong 0 449,685 0 449,685

　－於香港以外上市 – Listed outside Hong Kong 1,622,266 0 1,622,266 0

　－非上市 – Unlisted 8,939,767 1,279,277 8,939,767 1,279,277

10,562,033 1,728,962 10,562,033 1,728,962

權益股 Equity shares

　－於香港上市 – Listed in Hong Kong 40,559 31,094 40,440 30,908

　－非上市 – Unlisted 20,110 20,941 20,110 20,941

60,669 52,035 60,550 51,849

小計 Sub-total 10,622,702 1,780,997 10,622,583 1,780,811

持作買賣用途的證券之公平值* Trading securities at fair value*

　－債務證券 – Debt securities 98,633 7,331 98,633 7,331

總值 Total 10,721,335 1,788,328 10,721,216 1,788,142

* Trading securities are all unlisted, and are issued by public sector entities.* 持作買賣用途的證券全部為非上市項

目，並由公營機構發行。



22 證券投資（續）Investments in securities (continued)

The non-trading securities are issued by:

本集團本銀行

The Group The Bank


2003 2002 2003 2002


HK$’000 HK$’000 HK$’000 HK$’000

中央政府 Central governments and

及中央銀行 central banks 8,536,000 449,685 8,536,000 449,685

公營機構 Public sector entities 936,496 455,779 936,496 455,779

銀行及其他 Banks and other

金融機構 financial institutions 743,839 476,772 743,839 476,772

企業 Corporate entities 406,367 398,761 406,248 398,575

10,622,702 1,780,997 10,622,583 1,780,811

The maturity profile of debt securities analysed by the remaining period at the balance

sheet date to the contractual maturity date is as follows:




2003 2002

千港元千港元

HK$’000 HK$’000

三個月以下 3 months or less but not

惟無需即時還款 repayable on demand 171,846 241,977

一年以下惟三個月以上 1 year or less but over 3 months 337,034 476,212

五年以下惟一年以上* 5 years or less but over 1 year* 9,288,803 771,038

超過五年 Over 5 years 829,524 211,307

無註明日期 Undated 33,459 35,759

10,660,666 1,736,293

* Included in the debt security portfolio maturing 5 years or less but over 1 year are

Hong Kong Government Exchange Fund Notes totalling HK$6,591,670,000 (2002:

HK$449,685,000), which can be used to obtain overnight Hong Kong dollar funding

from the Discount Window operated by the HKMA.

非持作買賣用途的證券由以下機構發行：

* 五年或以下惟一年以上之債務證券組

合包括香港政府外匯基金債券合共

6,591,670,000港元（二零零二年：

449,685,000港元），該債券可讓銀行透

過由香港金融管理局運作之貼現窗，

借取隔夜港元資金。


劃分之債務證券的期限組別：



23 聯營公司投資Investment in associated company




2003 2002

千港元千港元

HK$’000 HK$’000

非上市股份，按成本值 Unlisted shares, at cost 5,761 5,761

貸款 Advances 8,947 9,874

減：減值虧損 Less: impairment loss (5,761) (5,761)

8,947 9,874

The Bank owns 40% (2002: 40%) of the issued share capital of IBA Finance

Corporation, which is incorporated in the Philippines. The principal activity of the

associated company is the provision of financing and leasing services in the Philippines.

The Bank has not equity accounted for the investments in the associated company in

view of the immaterial amount involved.

24附屬公司投資Investments in subsidiaries

本銀行

The Bank


2003 2002

千港元千港元

HK$’000 HK$’000

非上市股份，按成本 Unlisted shares, at cost 118,505 87,146

本銀行擁有在菲律賓註冊成立之 IBA

Finance Corporation 40%（二零零二年：

40%）已發行股本。該聯營公司之主要

業務為於菲律賓提供財務及租賃服務。

由於投資額微薄，故本銀行並無於帳目

中按權益計算其於該聯營公司之投資。



24附屬公司投資（續）Investments in subsidiaries (continued)

All principal subsidiaries are directly owned by the Bank. Details of principal subsidiaries

at 31 December 2003 are as follows:

已發行及繳足持有

之普通股本之股權

Issued and fully % of

paid-up ordinary ownership 主要業務

share capital interest held Principal activities

於香港註冊成立及經營 Incorporated and operating in Hong Kong

港基國際財務有限公司 IBA Credit Limited 65,000,000 港元 100% 接受存款及財務

HK$65,000,000 Deposit-taking and finance

港基國際銀行（信託）有限公司 International Bank of Asia (Trustee) Limited 5,000,000港元* 100% 信託服務

HK$5,000,000* Trustee services

港基國際證券有限公司 IBA Securities Limited 8,000,000港元 100% 證券經紀

HK$8,000,000 Securities broking

港基國際資金管理有公司 IBA Fund Management Limited 8,000,000港元 100% 資金管理

HK$8,000,000 Fund management

Mars (Nominees) Limited Mars (Nominees) Limited 200港元 100% 代理人服務

HK$200 Nominees services

於瓦魯圖註冊成立及經營 Incorporated and operating in Vanuatu

IBA Bank Limited IBA Bank Limited 4,000,000美元* 100% 財務

US$4,000,000* Finance

All of these are controlled subsidiaries as defined under Note 2(c) and have been

consolidated into the Group’s financial statements. All the subsidiaries are private

companies except for International Bank of Asia (Trustee) Limited, which is a public

company.

* The issued and fully paid-up ordinary share capital of International Bank of Asia

(Trustee) Limited and IBA Bank Limited were increased from HK$3,000,000 and

US$10,000 respectively to HK$5,000,000 and US$4,000,000 respectively during

the year to comply with regulatory requirements and to increase the capital bases

of these companies.

全部主要附屬公司均由本銀行直接擁有。

於二零零三年十二月三十一日主要附屬

公司之資料如下：

以上公司於附註2(c)定名為受控附屬公

司，並已歸納入本集團之帳目內。除港

基國際銀行（信託）有限公司為公眾公司

外，該等附屬公司均為私人公司。

* 年內，港基國際銀行（信託）有限公

司與 IBA Bank Limited之已發行及

繳足普通股股本分別由3,000,000港

元及10,000美元增加至5,000,000港

元及4,000,000美元，以符合規管規

定及增強股本基礎。



25 固定資產Fixed assets

THE GROUP

傢俬、

裝置及設備

Furniture,

房地產 fixtures and 總額

Premises equipment Total

千港元千港元千港元

HK$’000 HK$’000 HK$’000

成本或估值 Cost or valuation

於二零零三年一月一日 At 1 January 2003 1,180,993 339,524 1,520,517

添置 Additions 0 22,811 22,811

出售 Disposals 0 (913) (913)

於二零零三年十二月三十一日 At 31 December 2003 1,180,993 361,422 1,542,415

累計折舊 Accumulated depreciation

於二零零三年一月一日 At 1 January 2003 79,896 184,174 264,070

年內折舊 Charge for the year 13,383 41,536 54,919

出售之抵免 Released on disposal 0 (913) (913)

於二零零三年十二月三十一日 At 31 December 2003 93,279 224,797 318,076

帳面淨值 Net book value


於二零零二年十二月三十一日 At 31 December 2002 1,101,097 155,350 1,256,447

本集團



25 固定資產（續）Fixed assets (continued)

THE BANK

傢俬、

裝置及設備

Furniture,

房地產 fixtures and 總額

Premises equipment Total


HK$’000 HK$’000 HK$’000

成本或估值 Cost or valuation

於二零零三年一月一日 At 1 January 2003 1,144,244 337,861 1,482,105

添置 Additions 0 22,790 22,790

出售 Disposals 0 (913) (913)


累計折舊 Accumulated depreciation

於二零零三年一月一日 At 1 January 2003 77,470 183,184 260,654

年內折舊 Charge for the year 13,057 41,349 54,406

出售之抵免 Released on disposal 0 (913) (913)

於二零零三年十二月三十一日 At 31 December 2003 90,527 223,620 314,147

帳面淨值 Net book value


於二零零二年十二月三十一日 At 31 December 2002 1,066,774 154,677 1,221,451

本銀行



房地產之淨面帳值包括：

若干房地產已按彼等於一九八九年十一

月之估值77,100,000港元（二零零二年：

77,100,000港元）計入財務報告。編製該

等財務報告時，已採納香港會計師公會

制定之《會計實務準則》第17條第80段中

「房地產、廠房及設備」之過渡規則，准

許在結算日並未按公平價值重估房地產。

董事目前無意於日後重估房地產價值。

列入資產負債表內重估之所有房地產之

淨面帳值為該等房地產之成本價值減累

計折舊：

25 固定資產（續）Fixed assets (continued)

The net book value of premises comprises:

本集團本銀行

The Group The Bank


2003 2002 2003 2002


HK$’000 HK$’000 HK$’000 HK$’000

於香港之房地產 Premises held in Hong Kong

－長期租賃 – Long term leases

（超過五十年） (over 50 years) 847,719 855,115 813,722 820,792

－中期租賃 – Medium term leases

（十年至五十年） (10 – 50 years) 239,995 245,982 239,995 245,982

1,087,714 1,101,097 1,053,717 1,066,774

Certain of these premises of the Bank have been included in the financial statements

at their November 1989 valuation of HK$77,100,000 (2002: HK$77,100,000). In

preparing these financial statements, advantage has been taken of the transitional

provisions in paragraph 80 of the Statement of Standard Accounting Practice 17

“Property, Plant and Equipment” issued by the HKSA with the effect that premises have

not been revalued to fair value at the balance sheet date. It is not the Directors’

present intention to revalue the premises in the future.

The net book value of all premises which have been stated in the balance sheet at

valuation would have been as follows had they been stated at cost less accumulated

depreciation:




2003 2002

千港元千港元

HK$’000 HK$’000

於十二月三十一日之淨面帳值 Net book value at 31 December 18,123 18,565



26銀行同業及其他金融機構之存款及結餘Deposits and balances of banks and other financialinstitutions






2003 2002

千港元千港元

HK$’000 HK$’000

即時還款 Repayable on demand 1,892 1,778

三個月以下惟無需即時還款 3 months or less but not repayable on demand 465,780 328,591

一年以下惟三個月以上 1 year or less but over 3 months 7,763 0

475,435 330,369

27 客戶存款Deposits from customers

本集團本銀行

The Group The Bank


2003 2002 2003 2002


HK$’000 HK$’000 HK$’000 HK$’000

活期及往來存款 Demand deposits and current

accounts 8,548,748 2,805,818 8,548,748 2,805,818

儲蓄存款 Savings deposits 744,710 613,942 744,710 613,942

通知存款 Call deposits 1,049,514 811,753 1,049,094 811,333

定期存款 Time deposits 18,453,447 17,839,294 17,381,677 16,875,137

28,796,419 22,070,807 27,724,229 21,106,230

按結算日至合約訂明的到期日之剩餘期

限劃分之期限組別：



27 客戶存款（續）Deposits from customers (continued)



本集團本銀行

The Group The Bank


2003 2002 2003 2002


HK$’000 HK$’000 HK$’000 HK$’000

即時還款 Repayable on demand 10,342,972 4,231,513 10,342,554 4,231,093

三個月以下惟無需即時 3 months or less but not repayable

還款 on demand 17,161,484 16,781,314 16,089,712 15,817,157

一年以下惟三個月以上 1 year or less but over 3 months 919,746 965,523 919,746 965,523

五年以下惟一年以上 5 years or less but over 1 year 372,217 92,457 372,217 92,457

28,796,419 22,070,807 27,724,229 21,106,230





28已發行存款證Certificates of deposit issued






2003 2002

千港元千港元

HK$’000 HK$’000

三個月以下惟無需即時還款 3 months or less but not repayable on demand 100,000 0

一年以下惟三個月以上 1 year or less but over 3 months 800,000 0

五年以下惟一年以上 5 years or less but over 1 year 1,751,647 1,810,494

2,651,647 1,810,494

The above certificates of deposit were issued under a Program Agreement dated 29

January 1997. Under this program, the holders or bearers of the certificates of deposit

were granted put options which allow them to sell their certificates of deposit to the

Bank at their principal amount if ABC ceases to own legally and beneficially at least

51% of the Bank. On 16 February 2004, ABC accepted Fubon Financial’s general offer

and disposed of its 55% equity interest of the Bank. The holders or bearers of the

certificates of depost can exercise their put options within 90 days from 16 February

2004.



上述存款證乃根據日期為一九九七年一

月二十九日之計劃協議發行。根據該計

劃，存款證之持有人或持證人獲授予證

沽期權，可讓彼等於阿拉伯銀行集團

(B.S.C.)不再合法及實益擁有本銀行最少

51%權益時按本金額出售所持存款證予

本銀行。於二零零四年二月十六日，阿

拉伯銀行集團接納富邦金控之全面收購

建議並出售其於本銀行之55%股權。存

款證之持有人或持證人可由二零零四年

二月十六日起計九十日內行使彼等之認

沽期權。



29股本Share capital


2003 2002

千港元千港元

HK$’000 HK$’000

法定股本 Authorised

1,406,592,000股（二零零二年： 1,406,592,000 (2002: 1,406,592,000)

1,406,592,000股）每股面值1港元之普通股 ordinary shares of HK$1 each 1,406,592 1,406,592

已發行及繳足股本 Issued and fully paid

1,172,160,000股（二零零二年： 1,172,160,000 (2002: 1,172,160,000)

1,172,160,000股）每股面值1港元之普通股 ordinary shares of HK$1 each 1,172,160 1,172,160

30股份溢價Share premium

The application of the share premium account is governed by section 48B of the Hong

Kong Companies Ordinance.

股份溢價帳戶之應用由香港《公司條例》

第48B節監管。



31 儲備Reserves

本集團 THE GROUP

資本贖回儲備投資重估儲備

Capital Investment 保留溢利

redemption revaluation Retained 總額

reserve reserve earnings Total千港元千港元千港元千港元

HK$’000 HK$’000 HK$’000 HK$’000

於二零零二年一月一日 At 1 January 2002

承前報告 As previously reported 372,000 (18,225) 1,396,119 1,749,894

前期按遞延稅項之調整 Prior period adjustment in respect

of deferred taxation 0 2,916 3,059 5,975

重報 As restated 372,000 (15,309) 1,399,178 1,755,869

年內除稅後溢利（重報） Profit after tax for the year (restated) 0 0 220,444 220,444

非持作買賣用途證券之 Realisation of revaluation deficit of

重估虧損之變現 non-trading securities 0 3,854 0 3,854

非持作買賣用途證券 Net change in fair value of non-trading

淨公平值變動 securities 0 (6,152) 0 (6,152)

遞延稅項（附註21(b)） Deferred taxation (Note 21(b)) 0 368 0 368

上一財政年度通過股息 Dividend approved in respect of the

previous financial year 0 0 (82,051 ) (82,051)

派付中期股息 Interim dividend paid 0 0 (46,886 ) (46,886)

於二零零二年十二月三十一日（重報） At 31 December 2002 (restated) 372,000 (17,239) 1,490,685 1,845,446

於二零零三年一月一日 At 1 January 2003

承前報告 As previously reported 372,000 (20,523) 1,492,520 1,843,997前期按遞延稅項之調整 Prior period adjustment in respect of

deferred taxation 0 3,284 (1,835) 1,449

重報 As restated 372,000 (17,239) 1,490,685 1,845,446年內除稅後溢利 Profit after tax for the year 0 0 138,138 138,138非持作買賣用途證券之 Realisation of revaluation surplus of

重估收入之變現 non-trading securities 0 (2,210) 0 (2,210)非持作買賣用途證券 Net change in fair value of

淨公平值變動 non-trading securities 0 26,052 0 26,052遞延稅項（附註21(b)） Deferred taxation (Note 21(b)) 0 (3,864) (670) (4,534)上一財政年度通過股息 Dividend approved in respect of the

previous financial year 0 0 (93,773) (93,773)派付中期股息 Interim dividend paid 0 0 (46,886) (46,886)

於二零零三年十二月三十一日 At 31 December 2003 372,000 2,739 1,487,494 1,862,233



31 儲備（續）Reserves (continued)

本銀行 THE BANK

資本贖回儲備投資重估儲備

Capital Investment 保留溢利

redemption revaluation Retained 總額

reserve reserve earnings Total千港元千港元千港元千港元

HK$’000 HK$’000 HK$’000 HK$’000

於二零零二年一月一日 At 1 January 2002

承前報告 As previously reported 372,000 (18,225) 1,023,403 1,377,178

前期按遞延稅項之調整 Prior period adjustment in respect of

deferred taxation 0 2,916 3,747 6,663

重報 As restated 372,000 (15,309) 1,027,150 1,383,841

年內除稅後溢利（重報） Profit after tax for the year (restated) 0 0 296,138 296,138

非持作買賣用途證券之 Realisation of revaluation deficit of

重估虧損之變現 non-trading securities 0 3,854 0 3,854

非持作買賣用途證券 Net change in fair value of non-trading

淨公平值變動 securities 0 (6,152 ) 0 (6,152)

遞延稅項（附註21(b)） Deferred taxation (Note 21(b)) 0 368 0 368

上一財政年度通過股息 Dividend approved in respect of the

previous financial year 0 0 (82,051 ) (82,051)

派付中期股息 Interim dividend paid 0 0 (46,886 ) (46,886)

於二零零二年十二月三十一日（重報） At 31 December 2002 (restated) 372,000 (17,239) 1,194,351 1,549,112

於二零零三年一月一日 At 1 January 2003

承前報告 As previously reported 372,000 (20,523) 1,198,889 1,550,366前期按遞延稅項之調整 Prior period adjustment in respect of

deferred taxation 0 3,284 (4,538) (1,254)

重報 As restated 372,000 (17,239) 1,194,351 1,549,112年內除稅後溢利 Profit after tax for the year 0 0 136,260 136,260非持作買賣用途證券之 Realisation of revaluation surplus of

重估收入之變現 non-trading securities 0 (2,210) 0 (2,210)非持作買賣用途證券 Net change in fair value of

淨公平值變動 non-trading securities 0 26,052 0 26,052遞延稅項（附註21(b)） Deferred taxation (Note 21(b)) 0 (3,864) (670) (4,534)上一財政年度通過股息 Dividend approved in respect of the

previous financial year 0 0 (93,773) (93,773)派付中期股息 Interim dividend paid 0 0 (46,886) (46,886)

於二零零三年十二月三十一日 At 31 December 2003 372,000 2,739 1,189,282 1,564,021



31 儲備（續）Reserves (continued)

(a) The capital redemption reserve arose from the redemption of the Bank’s “A” and

“B” preference shares in 1991 and 1992 out of its retained earnings. The capital

redemption reserve is undistributable under the Hong Kong Companies Ordinance

section 79C(2) but may be applied by the Bank in paying up its unissued shares to

be allotted to its members as fully paid bonus shares.

(b) Investment revaluation reserve has been set up and is dealt with in accordance

with the accounting policy adopted for non-trading securities (Note 2(g)(iii)). This

reserve is not available for distribution to shareholders because it does not

constitute realised profits within the meaning of section 79B(2) of the Hong Kong

Companies Ordinance.

(c) As at 31 December 2003, the aggregate amount of reserves available for

distribution to shareholders of the Bank was HK$1,189,282,000 (2002 (restated):

HK$1,194,351,000) respectively.

32 重大關連各方交易Material related partIES transactions

During the year the Group entered into a number of transactions with its ultimate

holding company (ABC) and another major shareholder, China Everbright Limited and

its subsidiaries, in the ordinary course of its banking business including, inter alia,

lending, placement of interbank deposits, participation in loan syndicates, correspondent

banking transactions and foreign exchange transactions. The contracts were priced

based on relevant market rates at the time of each transaction, and were under the

same terms as those available to other counterparties and customers of the Group. In

the opinion of the Directors these transactions were conducted on normal commercial

terms.

(a) 資本贖回儲備因在一九九一年及一

九九二年自本銀行之保留溢利撥款

贖回其「A」及「B」優先股而產生。根

據香港《公司條例》第79C(2)節，資

本贖回儲備不可分派，但可由本銀

行用以繳付將配發予其股東之未發

行股份之股款作為繳足紅股。

(b) 本銀行已成立投資重估儲備，並根

據就非持作買賣用途證券（附註

2(g)(iii)）所採納之會計政策處理。該

儲備並非可供分派予股東，原因為

該儲備並不構成香港公司條例第

79B(2)條所界定之可變現溢利。

(c) 於二零零三年十二月三十一日本銀

行可供分派予股東之儲備總額為

1,189,282,000港元（二零零二年（重

報）：1,194,351,000港元）。

(a) 本集團之日常銀行業務包括客戶貸

款、存放銀行同業存款、參與銀團

貸款、代理銀行交易及外匯交易，

而年內本集團於進行日常銀行業務

中與其最終控股公司（阿拉伯銀行

集團）及另一名主要股東中國光大

控股有限公司及其附屬公司訂立多

項交易。該等合約乃根據訂立各項

交易當時之有關市場價值訂價，而

條款與給予本集團同業及客戶相同。

董事認為，此等交易均以一般商業

條款進行。



32 重大關連各方交易（續）Material related party transaction (continued)

Information relating to income and expenses from related party transactions during the

year and balances outstanding as at the balance sheet date is set out below:


2003 2002

千港元千港元

HK$’000 HK$’000

(i) 收入／支出 (i) Income/expenses

利息收入 Interest income 2,956 5,267

利息支出 Interest expense 146 6,926


2003 2002

千港元千港元

HK$’000 HK$’000

(ii) 未償還餘額 (ii) Balances outstanding

最終控股公司 Ultimate holding company

短期資金 Short term funds 232,896 155,975

應計利息及其他帳目 Accrued interest and other accounts 130 1,436

應收最終控股公司款項 Due from ultimate holding company 233,026 157,411

其他關連各方 Other related parties

給予客戶之貸款及墊款 Loans and advances to customers 10,000 25,000

應計利息及其他帳目 Accrued interest and other accounts 5 3

應收其他關連各方款項 Due from other related parties 10,005 25,003

應收帳項總額 Total receivables 243,031 182,414

有關年內關連各方交易產生之收支及於

結算日尚未償還餘額之資料如下：



33 行政人員貸款Loans to officers

Loans to officers of the Bank disclosed pursuant to section 161B of the Hong Kong

Companies Ordinance are as follows:


2003 2002

千港元千港元

HK$’000 HK$’000

相關貸款 Aggregate amount of relevant loans at

　於十二月三十一日的總額 31 December

－本銀行 – by the Bank 9,743 12,491

－附屬公司 – by a subsidiary 132 237

9,875 12,728

年內相關貸款之最高未償還總額 Maximum aggregate amount of relevant loans

outstanding during the year

－本銀行 – by the Bank 16,191 16,125

－附屬公司 – by a subsidiary 237 237

16,428 16,362

There is no interest due but unpaid nor any provision made against these loans at 31

December 2003.

根據香港《公司條例》第161B節之規定披

露之本銀行借予行政人員之貸款如下：

於二零零三年十二月三十一日，此等貸

款並無逾期未償付利息，或涉及任何撥

備。



34僱員退休計劃Employee retirement benefits

(a) Defined benefit retirement plansThe Group operates a retirement scheme, namely the International Bank of Asia

Limited (1987) Retirement Scheme (“the Scheme”), which incorporates a defined

benefits plan for all its full-time employees. The Scheme is administrated by

trustees who are independent. The assets of the Scheme are held separately from

those of the Group. The Group has secured Mandatory Provident Fund (“MPF”)

exemption status for the Scheme.

The Scheme is funded by contributions from the Group in accordance with the

trust deed governing the Scheme and based on an independent actuary’s

recommendations. The latest independent actuarial valuation of the Scheme was

at 31 December 2003 and was prepared by Jennifer Chee, Fellow of the Society

of Actuaries of the United States of America, of William M. Mercer Limited using

the projected unit credit method. The actuarial valuation indicates that the

Group’s obligations under the Scheme are 100.6% (2002: 100.6%) covered by

the plan assets held by the trustee.

(a) 定額福利退休計劃本集團推行一項退休計劃，名為港

基國際銀行有限公司(1987)退休計

劃（「該計劃」)，為其全體全職僱員

成立一項定額福利計劃。該計劃由

獨立受託人管理。該計劃資產與本

集團的資產分開持有。本集團就該

計劃獲得強制性公積金（強積金）的

豁免地位。　

該計劃乃根據規管該計劃的信託契

據，並以獨立精算師的意見為基礎，

由本集團供款以作資助。該計劃最

新的獨立精算估值乃於二零零三年

十二月三十一日進行，由美國精算

師公會會員Jennifer Chee以預計單

位信貸方式編制。該精算估值顯示，

本集團根據該計劃的承擔享有由受

託人所持有的計劃資產的100.6%（二

零零二年：100.6%）保障。



34僱員退休計劃（續）Employee retirement benefits (continued)

(a) Defined benefit retirement plans (continued)

(i) The Scheme’s net assets recognised in the balance sheets under “Accrued

interest and other accounts” are as follows:




2003 2002

千港元千港元

HK$’000 HK$’000

獲全數或部份資助的承擔現值 Present value of wholly or partly funded

obligations (185,021) (181,742)

該計劃資產的公平價值 Fair value of Scheme assets 196,722 182,775

尚未確認的精算虧損 Unrecognised actuarial losses 8,363 15,931

於資產負債表內已獲確認的資產淨值 Net asset recognised in the balance sheet 20,064 16,964

The Scheme assets include ordinary shares issued by the Bank with a fair value of

HK$6,976,000 (2002: HK$4,793,000).

(a) 定額福利退休計劃（續）(i) 該計劃於資產負債表內「應計利

息及其他帳目」一節中已獲確認

的資產淨值如下：

該計劃的資產包括由本行所發行，公平

價值為6,976,000港元的普通股（二零零

二年：4,793,000港元）。





(ii) Movements in the net asset recognised in the balance sheet are as follows:




2003 2002

千港元千港元

HK$’000 HK$’000

於一月一日 At 1 January 16,964 16,566

對該計劃的供款 Contributions paid to the Scheme 15,069 11,662

於收益表內已獲確認的支出 Expense recognised in the income

（附註6） statement (Note 6) (11,969) (11,264)

於十二月三十一日 At 31 December 20,064 16,964

(iii) Expense recognised in the “Operating expenses – staff costs” in the

consolidated income statement is as follows:




2003 2002

千港元千港元

HK$’000 HK$’000

本期服務成本 Current service cost 13,402 10,774

承擔的利息成本 Interest cost on obligation 7,578 8,945

該計劃資產的預計回報 Expected return on Scheme assets (9,011) (8,455)

11,969 11,264

The actual return on the Scheme assets for the year ended 31 December 2003

amounted to approximately HK$8,292,000 (2002: HK$13,038,000).

(a) 定額福利退休計劃（續）(ii) 於資產負債表已獲確認資產

淨額的變動如下：

(iii) 於綜合收益表內「營運支出－

顧員成本」一節內已獲確認的

支出如下：

截至二零零三年十二月三十一日止年度，

該計劃資產的實際回報共約8,292,000（二

零零二年：13,038,000港元）。





(iv) The principal actuarial assumptions used in valuing the liabilities and benefits

under the Scheme as at 31 December 2003 are as follows:




2003 2002

貼現率 Discount rate 5.0% 4.5%

資產長期回報率 Long-term rate of return on assets 5.0% 5.0%

進帳率 Credited rate 5.0% 5.0%

未來薪金加幅 Future salary increases 0% for 2004 0% for 2003

0% for 2005 0% for 2004

0% for 2006 3.5% thereafter

4% thereafter

(b) Mandatory Provident Fund Scheme (“MPF Scheme”)The Group also operates an MPF scheme under the Hong Kong Mandatory

Provident Fund Schemes Ordinance for employees employed under the jurisdiction

of the Hong Kong Employment Ordinance and not previously covered by the

Scheme. The Group participated in an approved MPF scheme with the Bank

Consortium Trust Company Limited from 1 December 2000 to provide scheme

choice to both existing and new employees.

The MPF scheme is a defined contribution retirement scheme administered by

independent trustees. Under the MPF scheme, the employer and its employees

are each required to make contributions to the scheme at 5% of the employees’

relevant income, subject to a cap of monthly relevant income of HK$20,000.

Contributions to the scheme vest immediately.

(a) 定額福利退休計劃（續）(iv) 於二零零三年十二月三十一日

計算該計劃之負債及福利之基

本精算假設如下：

(b)強制性公積金計劃根據香港強制性公積金計劃條例，

本集團亦向根據香港僱傭條例管轄

範圍內受僱而未曾納入該計劃內的

僱員，推行了一項強積金計劃。本

集團由二零零零年十二月一日起，

參與銀聯信託有限公司一項獲認可

的強積金計劃，以向現職及新入職

僱員提供計劃選擇。

強積金計劃乃由獨立受託人所管理

的定額供款退休計劃。根據強積金

計劃，僱主及其僱員須各自就計劃

按有關僱員收入5%作出供款，並以

月入20,000港元為上限。計劃一經

供款，即告生效。

100INTERNATIONAL BANK OF ASIA LIMITED ANNUAL REPORT 2003


35 未付承擔Outstanding commitments

(a) Capital commitments outstanding at 31 December 2003 not provided for in the

financial statements are as follows:




2003 2002

千港元千港元

HK$’000 HK$’000

已訂合約 Contracted for 54,297 67,053

(b) At 31 December 2003, the total future minimum lease payments under non-

cancellable operating leases are payable as follows:

本集團本銀行

The Group The Bank


2003 2002 2003 2002


HK$’000 HK$’000 HK$’000 HK$’000

一年內 – Within one year 17,891 11,435 17,152 10,508

一至五年間 – Between one and five years 11,738 5,691 11,738 5,402

29,629 17,126 28,890 15,910

The Group and the Bank leased a number of premises under operating leases. The

leases typically run for an initial period of one to five years. None of the leases includes

contingent rentals.

(a) 未於財務報告內提撥之於二零零三

年十二月三十一日之未兌現資本承

擔如下：

(b) 於二零零三年十二月三十一日不可

取消營運租賃之未來最低租賃還款

應收總額如下：

本集團及本銀行出租一些物業，並列為

營運租賃。此等租賃一般長達一至五年。

此等租賃合約不包括任何或有租約。



36資產負債表外項目Off-balance sheet exposures

(a) Contingent liabilities and commitmentsThe following is a summary of the contractual and risk-weighted amounts of each

significant class of contingent liabilities and commitments:

本集團 THE GROUP


2003 2002

信貸信貸

風險加權風險加權

合約金額合約金額

金額 Credit Risk 金額 Credit Risk

Contractual Weighted Contractual Weighted

Amounts Amounts Amounts Amounts


HK$’000 HK$’000 HK$’000 HK$’000

直接信貸替代項目 Direct credit substitutes 439,445 439,445 454,437 454,437

與交易有關之或然項目 Transaction-related contingencies 10,194 5,097 8,912 4,456

與貿易有關之或然項目 Trade-related contingencies 194,322 38,864 386,342 22,770

未提取之備用貸款 Undrawn loan facilities

－原訂到期期限少於一年或 – with an original maturity of

可無條件地取消 under 1 year or which are

unconditionally cancellable 4,997,652 0 5,492,194 0

－原訂到期期限為一年或以上 – with an original maturity of

1 year or over 629,478 314,740 656,002 328,002

遠期預約放款 Forward forward deposits placed 797,873 159,575 153,372 30,674

7,068,964 957,721 7,151,259 840,339

(a) 或然負債及承擔以下為每項重要或然負債及承擔類

別之合約金額及風險加權金額之摘

要。



36資產負債表外項目（續）Off-balance sheet exposures (continued)

(a) Contingent liabilities and commitments (continued)

本銀行 THE BANK


2003 2002

信貸信貸

風險加權風險加權

合約金額合約金額

金額 Credit Risk 金額 Credit Risk

Contractual Weighted Contractual Weighted

Amounts Amounts Amounts Amounts


HK$’000 HK$’000 HK$’000 HK$’000

直接信貸替代項目 Direct credit substitutes 447,035 447,035 462,027 462,027

與交易有關之或然項目 Transaction-related contingencies 10,194 5,097 8,912 4,456

與貿易有關之或然項目 Trade-related contingencies 194,322 31,406 422,313 24,209

未提取之備用貸款 Undrawn loan facilities

－原訂到期期限少於一年或 – with an original maturity of

可無條件地取消 under 1 year or which are

unconditionally cancellable 4,890,554 0 5,483,793 0

－原訂到期期限為一年或以上 – with an original maturity

of 1 year or over 629,478 314,740 619,562 309,782

遠期預約放款 Forward forward deposits placed 797,873 159,575 153,372 30,674

6,969,456 957,853 7,149,979 831,148

(a) 或然負債及承擔（續）




(b) DerivativesThe following is a summary of the contractual amounts, credit risk-weighted

amounts and replacement costs of each significant type of derivatives:

本集團 THE GROUP二零零三年

2003

信貸風險

加權金額

合約金額 Credit Risk 重置成本

Contractual Weighted ReplacementAmounts Amounts Costs千港元千港元千港元

HK$’000 HK$’000 HK$’000

交易 Trading

匯率合約 Exchange rate contracts

－遠期匯率合約 – Forward exchange contracts 1,989,459 7,181 86,682 －掉期合約 – Swaps 928,247 4,641 0 －購入期權 – Options purchased 590,129 0 824 －沽出期權 – Options written 603,529 N/A N/A股本期權合約 Equity option contracts

－購入期權 – Options purchased 265,473 0 1,612 －沽出期權 – Options written 265,473 N/A N/A

4,642,310 11,822 89,118

對沖 Hedging


－掉期合約 – Swaps 7,623,301 20,419 25,862利率合約 Interest rate contracts

－掉期利率合約 – Interest rate swaps 2,536,810 12,630 44,947

10,160,111 33,049 70,809

14,802,421 44,871 159,927

(b)衍生工具以下為每項重要衍生工具類別之合

約金額及信貸風險加權金額之摘要：




(b) Derivatives (continued)

本集團 THE GROUP二零零二年

2002

信貸風險

加權金額


Contractual Weighted Replacement

Amounts Amounts Costs


HK$’000 HK$’000 HK$’000

交易 Trading


－遠期匯率合約 – Forward exchange contracts 694,953 306 188

－掉期合約 – Swaps 905,091 4,525 0

－購入期權 – Options purchased 171,652 3 500

－沽出期權 – Options written 176,657 N/A N/A

1,948,353 4,834 688

對沖 Hedging


－掉期合約 – Swaps 956,296 7,108 25,977

利率合約 Interest rate contracts


1,990,944 13,751 54,837

3,939,297 18,585 55,525

(b)衍生工具（續）





本銀行 THE BANK

二零零三年

2003信貸風險

加權金額


Contractual Weighted ReplacementAmounts Amounts Costs千港元千港元千港元

HK$’000 HK$’000 HK$’000

交易 Trading


－遠期匯率合約 – Forward exchange contracts 2,019,198 7,240 86,682 －掉期合約 – Swaps 928,247 4,641 0

－購入期權 – Options purchased 590,129 0 824 －沽出期權 – Options written 603,529 N/A N/A股本期權合約 Equity option contracts

－購入期權 – Options purchased 265,473 0 1,612 －沽出期權 – Options written 265,473 N/A N/A

4,672,049 11,881 89,118

對沖 Hedging


－掉期合約 – Swaps 7,623,301 20,419 25,862利率合約 Interest rate contracts


10,160,111 33,049 70,809

14,832,160 44,930 159,927






本銀行 THE BANK

二零零二年2002

信貸風險

加權金額


Contractual Weighted Replacement

Amounts Amounts Costs


HK$’000 HK$’000 HK$’000

交易 Trading


－遠期匯率合約 – Forward exchange contracts 706,686 329 188

－掉期合約權 – Swaps 905,091 4,525 0

－購入期權 – Options purchased 171,652 3 500

－沽出期權 – Options written 176,657 N/A N/A

1,960,086 4,857 688

對沖 Hedging


－掉期合約 – Swaps 956,296 7,108 25,977

利率合約 Interest rate contracts


1,990,944 13,751 54,837

3,951,030 18,608 55,525






Derivatives arise from forward, swap and option transactions undertaken by the

Group in the foreign exchange, interest rate and equity markets. The contractual

amounts of these instruments indicate the volume of transactions outstanding at

the balance sheet date; they do not represent amounts at risk.

The trading transactions include positions arising from the execution of trade

orders from customers and transactions taken to hedge these positions. No

significant proprietary positions are maintained by the Group. The hedging

contracts are used to hedge the Group’s own exposure to market risks as part of

its asset and liability management.

The replacement costs and credit risk-weighted amounts of the off-balance sheet

exposures disclosed in parts (a) and (b) of this note to the financial statements do

not take into account the effects of bilateral netting arrangements. They are

assessed in accordance with the HKMA’s guidelines which implement the Basle

agreement on capital adequacy. Replacement cost represents the cost of replacing

all contracts which have a positive value when marked to market. The credit risk-

weighted amount refers to the amount as computed in accordance with the Third

Schedule to the Hong Kong Banking Ordinance on capital adequacy and depends

on the status of the counterparty and the maturity characteristics. The risk

weights used range from 0% to 100% for contingent liabilities and commitments,

and from 0% to 50% for exchange rate and interest rate contracts.

(b)衍生工具（續）衍生工具乃因本集團在外匯、利率

及股本市場進行遠期、掉期及期權

交易而產生。該等工具之合約金額

顯示出結算日之未付交易量，惟並

不是代表風險之金額。

買賣交易包括執行客戶買賣指示之

倉盤及用以對沖該等倉盤之交易。

本集團並無維持重大頭寸。對沖合

約乃用以對沖本集團之市場風險，

為其資產及負債管理之一部份。

於本財務報告附註第(a)及(b)部份披

露之資產負債表以外項目之重置成

本及信貸風險加權金額並無計及雙

邊淨額結算安排之影響。該等數額

乃根據已包容了巴塞爾協議內有關

資本充足方面之香港金融管理局指

引。重置成本乃指重置所有以市況

計算會有正數值之合約成本。信貸

風險加權金額乃指根據銀行業條例

附表三所計算之金額及視乎交易對

方之狀況及到期期限之特質而進行

評估。用於或然負債及承擔之風險

加權比率為0%至100%，而用於匯

率及利率合約之有關比率則為0%

至50%。



37 現金及等同現金項目Cash and cash Equivalents

(i) Components of cash and cash equivalents in the consolidated cashflow statement

本集團

The Group


2003 2002

千港元千港元

HK$’000 HK$’000

現金 Cash on hand 82,367 91,511

短期資金（購買日起計三個月內到期） Short term funds maturing within 3 months

from acquisition date 7,101,061 11,344,132

一至十二個月到期之銀行同業放款 Placements with banks maturing between one

（購買日起計三個月內到期） and twelve months, which mature within

3 months from acquisition date 1,525,929 558,358

8,709,357 11,994,001

(ii) Reconciliation with the consolidated balance sheet

本集團

The Group


2003 2002

千港元千港元

HK$’000 HK$’000

現金 Cash on hand 82,367 91,511

短期資金 Short term funds 7,101,061 12,116,538

一至十二個月到期之銀行同業放款 Placements with banks maturing between one

and twelve months 1,525,929 735,030

綜合資產負債表上之金額 Amount shown in the consolidated balance sheet 8,709,357 12,943,079

減：原於三個月以上到期的金額 Less: Amounts with an original maturity of over

three months 0 (949,078)

綜合現金流動表上之現金及等同現金 Cash and cash equivalents in the consolidated

項目 cashflow statement 8,709,357 11,994,001

(i) 綜合現金流動表之現金及等同現金

項目成份

(ii) 綜合資產負債表之對賬



38比較數字Comparative figures

Certain comparative figures have been adjusted as a result of the adoption of the

revised SSAP 12 “Income Taxes” issued by the HKSA, details of which are set out in the

statement of changes in equity, Note 2(l), Note 3, Note 12 and Note 21.

The comparative figures of cashflows in relation to the issuance and redemption of

floating rate certificates of deposits have been reclassified from cashflow from

financing activities to cashflow from operating activities to better reflect the nature of

these cashflows.

HK$22,654,000 amortisation of cash rebates on mortgage loans has been reclassified

in the comparative figures from fee and commission expense to interest income to

better reflect the nature of this income.

In 2003, Real Estate Division was separated from other banking divisions for segmental

reporting as the directors consider that this business segment is subject to different

business risks compared to other business segments and is operated by a separate unit

of the Bank for management and internal reporting purposes. The comparative figures

have been restated accordingly in Note 16.

The extent of the segment reporting analysis included in Note 16 has been expanded

in 2003 to include a full analysis of all items included on the face of the income

statement. Accordingly, the segment reporting for 2002 has been restated.

The comparative figures for the contractual amounts, credit risk weighted amounts

and replacement costs of foreign exchange swaps, which were previously included in

forward exchange contracts in 2002, have been disclosed separately in Note 36(b) to

give a better presentation.

由於採納香港會計師公會頒佈之經修訂會

計實務準則第12號「所得稅」之緣故，若

干比較數字經調整，詳情載於股本變動表、

附註2(l)、附註3、附註12及附註21。

有關發行及贖回浮息存款證之現金流量

比較數字已由融資項目之現金流量重新

分類為營業活動之現金流量，以更有效

反映該等現金流量之性質。

為數22,654,000港元之按揭貸款現金回

贈攤銷於比較數字中已由費用及佣金費

用重新分類為利息收入，以更有效反映

該項收入之性質。

於二零零三年，物業管理業務部門自其

他銀行業務部門分拆出來作為分項呈報，

理由為董事認為此業務分項與其他業務

分項承受不同之業務風險，而其管理及

內部呈報均由本銀行獨立單位運作。該

等比較數字已重新呈列於附註16。

列於附註16之分項資料分析之蓋涵範圍

已加入收益表內之所列全部項目之分析。

因此，二零零二年之分項資料已重新呈

報。

為更清晰呈列，先前於二零零二年列入

遠期匯率合約之掉期匯率合約之合約款

項、加權信貸風險款項及重置成本之比

較數字，已於附註36(b)獨立呈列。



39重大結算日後事項Significant post-balance sheet events

As mentioned in Note 1, Fubon Financial became the ultimate holding company of the

Bank with effect from 16 February 2004 and on the close of the general offer on 8

March 2004, had acquired a further 20.08% in the Bank’s issued share capital from

other shareholders, to bring its total shareholding to 75.08%

As mentioned in Note 13, a special interim divided of HK$0.26 per share totalling

HK$304,761,600 was paid on 16 February 2004 after the Pre-Conditions in relation to

Fubon Financial’s acquisition of the Bank’s interest were satisfied.

如附註1所述，富邦金控由二零零四年

二月十六日起成為本銀行之最終控股公

司，並於二零零四年三月八日全面收購

建議截止時進一步向其他股東收購本銀

行已發行股本20.08%，令其持有之總股

權增至75.08%。

如附註13所述，於富邦金控收購本銀行

權益之先決條件達成後，於二零零四年

二月十六日本銀行派付特別中期股息每

股0.26港元合共304,761,600港元。


Unaudited SupplementaryFinancial Information

未經審核補充財務資料

(a) 資本充足及流動資金比率Capital adequacy and liquidity ratios


2003 2002

百分率百分率

% %

於年底未經調整資本充足比率 Unadjusted capital adequacy ratio

at year end 19.79 20.84

於年底已經調整資本充足比率 Adjusted capital adequacy ratio at year end 19.72 21.03

十二月份平均流動資金比率 Average liquidity ratio for December 57.89 52.49

截至十二月三十一日止之年度 Average liquidity ratio for the year

平均流動資金比率 ended 31 December 59.37 49.76

The unadjusted capital adequacy ratio is computed on a consolidated basis as required

by the HKMA for its regulatory purposes, and is in accordance with the Third Schedule

of the Hong Kong Banking Ordinance. The adjusted capital adequacy ratio

incorporating market risk is computed on the same consolidated basis, and is in

accordance with the Guideline “Maintenance of Adequate Capital Against Market

Risks” issued by the HKMA.

The average liquidity ratio for the year is computed as the simple average of each

calendar month’s average ratio, as reported in Part I (2) of the “Return of Liquidity

Position of an Authorised Institution” (MA(BS)1E) calculated in accordance with the

Fourth Schedule of the Hong Kong Banking Ordinance.

未經調整資本充足比率的計算，是根據

香港金融管理局訂定之綜合基準及《香

港銀行業條例》附表三，本銀行亦根據

香港金融管理局發出「就市場風險維持

充足資本」指引，以同樣綜合基礎計算

經調整資本充足比率。

年內平均流動資金比率是每個曆月平均

比率的簡單平均數。每個曆月平均比率

乃根據《香港銀行業條例》附表四的規定

計算並與「認可機構流動資金狀況申報

表」(MA(BS)IE)第1(2)部中申報的數字相

同。


Unaudited Supplementary Financial Information未經審核補充財務資料

根據《香港銀行業條例》附表

三的規定計算，在資本充足

比率申報表(MA(BS)3)第1部中

申報的資本基礎總額在扣減

後的組成部份如下：

(b) The components of the total capital base after deductions as reported under Part I

of the banking return “Capital Adequacy Return” (MA(BS)3) calculated in

accordance with the Third Schedule of the Hong Kong Banking Ordinance are as

follows:


十二月十二月


As at As at


2003 2002

千港元千港元

HK$’000 HK$’000

（重報）

(Restated)

核心資本 Core capital

繳足股款的普通股股本 Paid up ordinary share capital 1,172,160 1,172,160

儲備（包括保留溢利） Reserves (including retained earnings) 1,774,178 1,665,529

股份溢價 Share premium 749,778 749,778

可計算的附加資本 Eligible supplementary capital

土地及土地權益價值重估 Reserves on revaluation of land

的儲備 and interests in land 36,868 36,868

非持作買賣用途證券價值重估 Reserves on revaluation of holdings of

的儲備 securities not held for trading purposes 1,917 (20,522)

一般呆帳準備 General reserves for doubtful debts 126,239 129,545

扣減前的資本基礎總額 Total capital base before deductions 3,861,140 3,733,358

資本基礎總額的扣減項目 Deductions from total capital base (69,821) (73,463)

已扣減後的資本基礎總額 Total capital base after deductions 3,791,319 3,659,895

(c) 主要客戶Major customers

Total income attributable to the Group’s five largest customers combined is

substantially less than 30% of the Group’s total income for both years 2002 and 2003.

於二零零二年及二零零三年，本集團從

其五位最大客戶所得到的收入低於本集

團總收入之30%。



(d) 客戶貸款－按行業分類Advances to customers – by industry sectors

The information concerning advances to customers by industry sectors has been

classified in accordance with the industry categories contained in the banking returns

on “Quarterly Analysis of Loans and Advances and Provisions (MA(BS)2A)” and “Assets

and Liabilities of an Authorised Institution (MA(BS)1)” submitted to the HKMA.


三十一日三十一日As at As at

31 December 31 December2003 2002


在香港使用的貸款 Loans for use in Hong Kong工商金融 Industrial, commercial and financial－物業發展 – Property development 69,691 237,151－物業投資 – Property investment 2,860,186 2,836,200－金融企業 – Financial concerns 205,792 234,694－股票經紀 – Stockbrokers 28,746 28,983－批發及零售業 – Wholesale and retail trade 116,675 183,904－製造業 – Manufacturing 1,485,924 1,340,140－運輸及運輸設備 – Transport and transport equipment 496,537 516,784－其他 – Others 2,283,172 2,231,622

個人 Individuals－購買「居者有其屋計劃」及 – Loans for the purchase of flats in the「私人參建居屋計劃」 Home Ownership Scheme and樓宇的貸款 Private Sector Participation Scheme 20,626 24,056

－購買其他住宅物業的貸款 – Loans for the purchase of otherresidential properties 6,857,637 6,134,708

－信用卡貸款 – Credit card advances 449,121 541,078－其他 – Others 694,619 640,401

15,568,726 14,949,721

貿易融資 Trade finance 123,223 166,957在香港以外使用的貸款 Loans for use outside Hong Kong 76,195 44,905

15,768,144 15,161,583

有關按行業分類客戶貸款之資料乃依據

呈交香港金融管理局的「貸款、墊款及

準備金分析季報表」(MA(BS)2A)及「認可

機構資產負債表」(MA(BS)1)所載的貸款

類別來列入各行業類別。



(E) 逾期客戶貸款Overdue advances to customers



As at As at


佔貸款總額佔貸款總額

之百分比之百分比

% of % of

千港元 gross 千港元 gross

HK$’000 advances HK$’000 advances

逾期客戶貸款 1 Overdue advances to customers1

六個月以下惟三個月以上 6 months or less but over 3 months 50,923 0.32 73,838 0.49

一年以下惟六個月以上 1 year or less but over 6 months 134,126 0.85 28,170 0.19

超過一年 Over 1 year 100,944 0.64 139,455 0.92

285,993 1.81 241,463 1.59

就逾期貸款持有之 Amount of collateral held in respect of

抵押品價值 2 overdue advances2 225,913 161,595

有抵押逾期貸款 Secured overdue advances 218,365 152,132

無抵押逾期貸款 Unsecured overdue advances 67,628 89,331

285,993 241,463

就逾期貸款撥出之 Amount of specific reserves made

特別準備數額 against overdue advances 54,163 53,288

1. Net of suspended interest.

2. Including expected recoveries of HK$10.42 million (2002: HK$11.73 million) from

companies in liquidation.

1 淨懸帳利息。

2 包括預期可從清盤中公司收回之

10,420,000港元（二零零二年：

11,730,000港元）。



(E) 逾期客戶貸款（續）Overdue advances to customers (continued)


十二月十二月


As at As at


2003 2002

千港元千港元

HK$’000 HK$’000

三個月以上有關利息仍然累計 Advances overdue for more than

之逾期貸款（「利息累計之 3 months and on which interest

逾期貸款」） is still being accrued

(“Interest accrual overdue advances”) 221 6,399

三個月或三個月以下有關利息 Advances overdue for 3 months or less

已被懸帳或停止累計之 and on which interest is being placed

逾期貸款（「利息停止累計 in suspense or on which

但非逾期之貸款」） interest accrual has ceased

(“Interest non-accrual but not

overdue advances”) 114,111 27,328



逾期客戶貸款與不履行合約

客戶貸款間之對帳

(F) Reconciliation between overdue advances to customers and non-performing advances


十二月十二月


As at As at


2003 2002

千港元千港元

HK$’000 HK$’000

逾期客戶貸款 Overdue advances to customers 285,993 241,463

減：利息累計之逾期貸款 Less : Interest accrual overdue advances (221) (6,399)

加：利息停止累計但非逾期之貸款 Add : Interest non-accrual but not

overdue advances 114,111 27,328

不履行合約貸款 Non-performing advances 399,883 262,392



1 已扣除逾期三個月以上及已在附註(E)

逾期客戶貸款中匯報之重定還款期貸

款。

(G) 重定還款期之客戶貸款Rescheduled advances to customers



As at As at


佔貸款總額佔貸款總額

之百分比之百分比

% of % of

千港元 gross 千港元 gross

HK$’000 advances HK$’000 advances

重定還款期之客戶貸款 1 Rescheduled advances to customers1

利息累計之重定還款期貸款 Interest accrual rescheduled advances 198,272 1.26 191,428 1.26

利息停止累計之重定 Interest non-accrual rescheduled

還款期貸款 advances 85,631 0.54 8,694 0.06

283,903 1.80 200,122 1.32

就重定還款期貸款持有之 Amount of collateral held in respect of

抵押品價值 rescheduled advances 246,574 176,247

有抵押重定還款期貸款 Secured rescheduled advances 234,620 169,260

無抵押重定還款期貸款 Unsecured rescheduled advances 49,283 30,862

283,903 200,122

就重定還款期貸款撥出之 Amount of specific reserves made

特別準備數額 against rescheduled advances 16,208 14,535

1. Net of rescheduled advances which have been overdue for over three months and were

reported in Note (E) Overdue advances to customers.



(H) 逾期資產之分析Analysis of overdue assets

應計利息逾期資產總額

貸款 Accrued Total overdue

Loans interest assets


於二零零三年十二月三十一日 As at 31 December 2003 HK$’000 HK$’000 HK$’000

逾期 Overdue for

六個月以下惟三個月以上 6 months or less but

over 3 months 50,923 6 50,929

一年以下惟六個月以上 1 year or less but

over 6 months 134,126 0 134,126

超過一年 Over 1 year 100,944 0 100,944

285,993 6 285,999

應計利息逾期資產總額

貸款 Accrued Total overdue

Loans interest assets


於二零零二年十二月三十一日 As at 31 December 2002 HK$’000 HK$’000 HK$’000

逾期 Overdue for

六個月以下惟三個月以上 6 months or less but

over 3 months 73,838 96 73,934

一年以下惟六個月以上 1 year or less but

over 6 months 28,170 0 28,170

超過一年 Over 1 year 139,455 0 139,455

241,463 96 241,559



(i) 收回資產及根據貸款協議所得資產Repossessed assets and assets aCquired under lending agreements

The total repossessed assets and assets acquired under lending agreements of the Group as

at 31 December 2003 amounted to HK$591,033,000 (2002: HK$722,459,000).

(j) 跨境債權Cross-border claims

The information on cross-border claims discloses exposures to foreign counterparties

on which the ultimate risk lies, and is derived according to the location of the

counterparties after taking into account any transfer of risk. In general, such transfer of

risk takes place if the claims are guaranteed by a party in a country which is different

from that of the counterparty or if the claims are on an overseas branch of a bank

whose head office is located in another country.

於二零零三年十二月三十一日，本集團

收回資產及根據貸款協議所得資產總額

合共591,033,000港元（二零零二年：

722,459,000港元）。

外資金融機構之跨境債權資料須根據經

計及任何風險轉移後該機構所在地所出

現及產生之最終風險作出披露。一般而

言，倘該等債權由該機構所屬國家以外

之其他國家之任何人士作出擔保或倘該

等債權乃由一家總辦事處位於另一國家

之海外分行持有，則須進行風險轉移。



(J) 跨境債權（續）Cross-border claims (continued)

本集團

The Group

銀行及其他

金融機構公營機構

Banks and Public

於二零零三年十二月三十一日 As at 31 December 2003 other financial sector 其他總額

百萬港元 Figures in HK$Million institutions entities Others Total

亞洲太平洋地區（不包括香港） Asia Pacific excluding Hong Kong

－澳洲 – Australia 562 0 211 773

－新加坡 – Singapore 1,478 0 45 1,523

－日本 – Japan 15 0 0 15

－其他 – Others 3 0 71 74

北美洲 North America

－加拿大 – Canada 107 0 1 108

－美國 – United States 200 1,632 34 1,866

加勒比 Caribbean

－百慕達 – Bermuda 0 0 12 12

－開曼群島 – Cayman Islands 0 0 81 81

－其他 – Others 0 0 80 80

中東－巴林 Middle East - Bahrain 233 0 0 233

西歐 Western Europe

－比利時 – Belgium 15 0 0 15

－德國 – Germany 11 0 0 11

－意大利 – Italy 2 156 0 158

－盧森堡 – Luxembourg 41 0 19 60

－荷蘭 – Netherlands 458 0 0 458

－瑞士 – Switzerland 227 0 0 227

－英國 – United Kingdom 1,237 0 7 1,244

－其他 – Others 5 0 0 5

4,594 1,788 561 6,943



(J) 跨境債權（續）Cross-border claims (continued)

本集團

The Group

銀行及其他

金融機構公營機構

Banks and Public

於二零零二年十二月三十一日 As at 31 December 2002 other financial sector 其他總額

百萬港元 Figures in HK$Million institutions entities Others Total

亞洲太平洋地區（不包括香港） Asia Pacific excluding Hong Kong

－澳洲 – Australia 356 0 0 356

－新加坡 – Singapore 1,989 0 0 1,989

－中國 – China 0 5 0 5

－其他 – Others 15 0 40 55

北美洲 North America

－加拿大 – Canada 102 0 1 103

－美國 – United States 13 1 127 141

加勒比 Caribbean

－開曼群島 – Cayman Islands 0 0 79 79

－其他 – Others 0 0 197 197

中東－巴林 Middle East - Bahrain 157 0 0 157

西歐 Western Europe

－比利時 – Belgium 3 0 0 3

－德國 – Germany 164 0 0 164

－法國 – France 4 0 2 6

－荷蘭 – Netherlands 275 0 0 275

－英國 – United Kingdom 689 0 4 693

－其他 – Others 14 0 39 53

3,781 6 489 4,276



(K) 外匯風險foreign exchange exposures

The net positions or net structural positions in foreign currencies are disclosed as

follows:

本集團

The Group

於二零零三年十二月三十一日

As at 31 December 2003

美元紐元澳元

Equivalent in US 歐元 New Zealand Australian 其他總額

百萬港元等值 HK$'Millions Dollars Euros Dollars Dollars Others Total

現貨資產 Spot assets 5,467 914 547 1,290 947 9,165

現貨負債 Spot liabilities (7,008) (606) (447) (1,199) (809) (10,069)

遠期買入 Forward purchases 6,050 1,640 42 677 1,011 9,420

遠期賣出 Forward sales (4,579) (1,951) (132) (737 ) (1,149) (8,548)

期權盤淨額 Net option position 0 0 0 0 0 0

長／（短）盤淨額 Net long/(short) position (70) (3) 10 31 0 (32)

美元紐元澳元

US 歐元 New Zealand Australian 其他總額

Dollars Euros Dollars Dollars Others Total

結構性倉盤淨額 Net structural position 0 0 0 0 0 0

有關外幣之倉盤淨額或結構性倉盤淨額

之披露如下：



(K) 外匯風險（續）foreign exchange exposures (continued)

本集團

The Group

於二零零二年十二月三十一日

As at 31 December 2002

美元紐元澳元

Equivalent in US 歐元 New Zealand Australian 其他總額

百萬港元等值 HK$'Millions Dollars Euros Dollars Dollars Others Total

現貨資產 Spot assets 4,204 287 450 920 230 6,091

現貨負債 Spot liabilities (4,945 ) (195 ) (379 ) (865 ) (441 ) (6,825 )

遠期買入 Forward purchases 1,547 185 4 165 543 2,444

遠期賣出 Forward sales (803 ) (279 ) (75 ) (214 ) (338 ) (1,709 )

期權盤淨額 Net option position 0 0 0 0 0 0

長／（短）盤淨額 Net long/(short) position 3 (2 ) 0 6 (6 ) 1

美元紐元澳元

US 歐元 New Zealand Australian 其他總額

Dollars Euro Dollars Dollars Others Total

結構性倉盤淨額 Net structural position 0 0 0 0 0 0

(L) 公司管治Corporate governance

The Group is committed to high standards of corporate governance, and has complied

throughout the year with the module on “Corporate governance of locally

incorporated authorised institutions” under the Supervisory Policy Manual issued by

the HKMA.

本集團致力實行高水平公司管治，並於

年內遵守香港金融管理局頒佈的監管政

策手冊的其中章節「本地註冊認可機構

的企業管治」。



(M) 主要委員會key specialised committees

The Board of Directors has established a number of governing committees including

the Executive Committee, Asset and Liability Committee, Audit Committee, and

Remuneration Committee.

(i) Executive Committee

The Executive Committee comprises independent, executive and non-executive

directors and is delegated the authority to act on behalf of the Board of Directors.

The Committee meets as required to review and approve the Bank’s risk

management strategy and various policies which include, but are not limited to

credit and lending policies, capital investment policy and other ad hoc general

management issues. It also serves as the credit committee of the Board to review

and approve credit applications within limits assigned by the Board.

(ii) Credit Committee

The Credit Committee has been established by the Board to carry out the Bank’s

credit risk management functions. It meets twice a week and is responsible for

approving, advising and recommending to the Chief Executive the approval of

credit exposures in accordance with the credit authority limits. The Credit

Committee reviews and implements measures on credit risk management and

controls and plays a key role in credit monitoring. It reviews loans extended by

lending officers and provides guidelines to all lending officers to assist them in

monitoring the credit risk of the loan portfolio.

董事會已成立若干管治委員會，包括執

行委員會、資產及負債委員會、審核委

員會以及薪酬委員會。

(i) 執行委員會

執行委員會由獨立、執行及非執行

董事組成，獲授權代表董事會行事。

委員會按規定審閱及批准銀行的風

險管理策略及各項政策，包括但不

限於信貸及借貸政策、資本投資政

策及其他特定一般管理事宜。委員

會亦為董事會的信貸委員會，負責

審閱及批核董事會指定限額以內的

信貸申請。

(ii) 信貸委員會

信貸委員會由董事會成立，負責本

銀行之信貸風險管理工作。該委員

會每星期舉行兩次會議，專責根據

信貸授權限額就信貸風險批核信貸

建議；並向行政總裁提供意見及推

薦建議。信貸委員會審閱及實施信

貸風險管理及控制之措施，在信貸

監控方面扮演著重要之角色。該委

員會審閱獲貸款主任延期之貸款，

並向全體借貸主任提供指引，協助

彼等監控貸款組合之信貸風險。



(M) 主要委員會（續）key specialised committees (continued)

(iii)Asset and Liability Committee

The Asset and Liability Committee is comprised of the Bank’s Chief Executive,

executive director, chief financial officer, treasurer, and senior managers as

appointed by the Chief Executive. The Committee meets on a weekly basis with

the internal auditor and chief compliance officer attending the meeting as

observers to ensure overall compliance with the governing policies. The

Committee’s main responsibilities include regular review of the Bank’s operations

relating to interest rate risk and liquidity risk and in particular the Bank’s ability to

meet its funding obligations, and its compliance with statutory liquidity and

capital adequacy requirements. The Committee regularly reviews and endorses,

for Board approval, the Bank’s policies governing asset and liability management,

investment, and other risk management issues. It also formulates both long term

strategy for the sources and uses of funds and short term directives to address

prevailing conditions and monitors the implementation of these strategies and

directives. In addition, the Asset and Liability Committee assesses the risk and

profitability of a new product proposed by respective business units and approves

new products.

(iv)Audit Committee

The Audit Committee comprises of three non-executive directors, majority of

whom are independent. It meets at least four times a year and additionally when

deemed necessary. The Audit Committee ensures adequate supervision of the

Bank’s financial reporting processes. The Committee also reviews the internal audit

programme and reports, ensures co-ordination between the internal and external

auditors, and monitors compliance with internal policies, statutory regulations and

recommendations made by the external auditors.

(iii)資產及負債委員會

資產及負債委員會由本行的行政總

裁、執行董事、財務總監、司庫、

以及行政總裁委任的高級管理人員

組成。委員會與內部核數師每星期

舉行一次會議，公司管治及合規部

主管會列席會議作觀察員，確保全

面符合管治政策。委員會的主要職

責包括定期檢討本行涉及利率風險

及流動資金風險的業務，特別針對

本行應付資金責任的能力以及遵守

法定流動資金及資金充裕要求事宜。

委員會定期審閱及批核本行有關資

產及負債管理、投資及其他風險管

理事宜的政策，以報董事會批准。

委員會亦制定資源及資金運用的長

遠政策、應付當時狀況的短期方針

以及監察該等政策及方針的推行。

此外，資產及負債委員會亦評估有

關營業部門所提出新產品的風險及

盈利能力，並批審有關新產品。

(iv)審核委員會

審核委員會由三名非執行董事組成，

其中大部份均為獨立人士。該委員

會每年最少舉行四次會議，並在認

為有需要時加開會議。審核委員會

確保充分監察本銀行之財務申報過

程。該委員會亦負責審閱內部審核

計劃及報告、確保內部及外聘核數

師之間之聯絡，以及監控是否遵守

內部政策、法定規則及由外聘核數

師作出之推薦意見。



(M) 主要委員會（續）key specialised committees (continued)

(v) Remuneration Committee

The Remuneration Committee comprises of the Board’s non-executive Chairman,

non-executive Vice Chairman and two independent non-executive directors. The

Committee meets as required to review and approve the remuneration packages

for senior executives which include the Chief Executive, Executive Director, and

Executive Vice Presidents. Executive directors do not play a part in decisions on

their own remuneration.

(N) 風險管理Management of risks

The Group has established policies and procedures for the control and monitoring of

credit risk, liquidity, capital and market risk. The risk management policy is formulated

by the Executive Committee, which also monitors risk and regularly reviews the

effectiveness of the Group’s risk management policies. The internal auditors also

perform regular audits to ensure compliance with the policies and procedures.

(i) Credit risk management

Credit risk arises from the potential that a borrower or counterparty will fail to

perform under an obligation. It arises from the lending, trading, treasury,

derivatives and other activities.

The Group’s credit policy incorporates prudent underwriting standards. The policy

defines the credit extension criteria, the credit approval authorities delegated from

the Board, the credit monitoring processes, the loan grading system and

provisioning policy. It also takes into account the requirements in the Hong Kong

Banking Ordinance and the guidelines issued by the HKMA with respect to large

exposures and provisioning requirements.

本集團已設有管理及監察信貸風險、流

動資金、資本及市場風險的政策及程序。

風險管理政策由執行委員會制定，委員

會亦實行風險監察，並定期檢討本集團

風險政策之有效性。內部核數師亦定期

進行核數以確保符合政策及程序。

(i) 信貸風險管理

信貸風險源於貸款人或交易對手未

能履行其承擔，可來自本集團之貸

款、貿易融資、財資、衍生工具及

其他銀行業務。

本集團之信貸政策融合審慎承擔標

準。有關政策對信貸條件、董事會

指定之信貸審批職權、信貸監管程

序、貸款分類系統及撥款政策作出

界定，並參考香港銀行條例內之規

定及香港金融管理局就高風險及撥

款規定頒佈之指引。

(v) 薪酬委員會

薪酬委員會由董事會之非執行主席、

非執行副主席及兩名獨立非執行董

事組成。該委員會按需要舉行會議，

以審閱及批准高級行政人員（包括

行政總裁、執行董事及執行副總裁）

之薪酬方案。執行董事並無參與彼

等本身薪酬之決策。



(N) 風險管理（續）Management of risks (continued)

The Executive Committee of the Board has been delegated the power to approve

credits on behalf of the Board. The Chief Executive Officer, who has been

delegated by the Board a lower credit approval authority than the Executive

Committee, has in turn delegated lower authorities to the Credit Committee as

approved by the Board of Directors. Approval takes into account facility structure,

tenor, the repayment ability of the prospective borrower and available security.

The credit departments, Corporate and Retail Banking Risk Management Unit and

Consumer Finance Risk Management Unit, receive their authority and delegated

responsibilities from the Credit Committee to provide centralised management of

credit risk. They are responsible for:

– independent evaluation of credit applications, which covers facility details,

credit grade determination, risk review and analysis and financial spreads;

– control of cross-border exposures, as well as those to banks and financial

institutions;

– portfolio management of risk concentrations;

– maintenance of the loan grading system; and

– reporting to the Risk Management Committee regularly on aspects of the

loan portfolio. This includes information on large credit exposures, industry

exposures, country exposures and levels of bad debt provisioning.

The Group has established guidelines to ensure that each new product is designed

and reviewed by a product committee. All relevant internal departments are

required that they have put in place the appropriate processes, systems and

controls before the product is approved by the Asset and Liability Committee.

董事會執行委員會獲授權負責代表

董事會審批信貸申請。行政總裁則

獲董事會授予較次於執行委員會之

審批信貸權力，而行政總裁亦經董

事會批准授予信貸委員會權力批出

信貸。信貸之審批均會考慮貸款種

類、貸款年期、有關未來借款人之

還款能力及抵押擔保。

信貸部門、企業及零售銀行風險管

理部、消費信貸風險管理部獲授權

並代表信貸委員會進行統一信貸風

險管理，負責下列各項職責：

－獨立審核信貸申請，包括信貸

詳情、信貸評級釐定、風險評

審及分析以及財務信貸息差；

－境外以及銀行及財務機構的風

險監控；

－風險組合比重管理；

－維持貸款評級制度；

－定期向風險管理委員會匯報貸

款組合情況，包括高信貸風險、

行業風險、國家風險以及壞帳

撥備程度等資料。

本集團同時亦制定政策以確保每項

新產品經由產品發展委員會設計及

審閱。所有有關之部門必須於產品

推出前，參予有關系統及控制程序。




Performance of loans is monitored through regular reviews and management

reports submitted to the Chief Executive Officer as well as the Internal Control

Department. To avoid concentration of risk, credit exposures to individual

customer groups and advances to industry sectors are carefully managed to

achieve a balanced loan portfolio. Analysis of advances to customers by industry

sector is disclosed in Note (D) above.

Unlike on-balance sheet instruments, where the credit risk is generally represented

by the principal value, the credit risk for derivatives is the positive replacement cost

together with an estimate for the potential future change in its market value. The

credit risk exposure on derivatives is disclosed in Note 36(b) of the financial

statements.

(ii) Liquidity management

Liquidity risk is the risk that not enough cash will be generated from either assets

or liabilities to meet deposit withdrawals or contractual loan funding. The Group

manages the liquidity structure of its assets, liabilities and commitments so as to

ensure that all group operations can meet their funding needs and that the

statutory liquidity ratio is complied with. As disclosed in Note (A) above, both the

Group’s consolidated liquidity ratio of 57.89% for December 2003 and the

average liquidity ratio of 59.37% for the year ended 31 December 2003 were well

above the statutory minimum ratio of 25%.

貸款履行情況乃透過定期檢討，以

及向行政總裁及內部審稽部門提交

的管理層報告進行監察。為避免風

險過份集中，個別客戶群的信貸風

險，以及向各行業所提供的貸款乃

經審慎處理，以達致一個平衡的貸

款組合。按行業分類的客戶貸款分

析乃於上述附註(D)內披露。

與資產負債表上的金融工具不同，

因其信貸風險一般以信貸本金顯示，

而衍生工具之信貸風險則指正面之

重置成本加上對其日後潛在變動之

市值估計。衍生工具信貸風險於財

務表附註36(b)予以披露。

(ii) 流動資金風險管理

流動資金風險是指從資產或負債方

面未能提供足夠現金以應付存款提

取或合約貸款需要的風險。本集團

會緊密監察集團的流動資金，以保

證集團資金結構中的資產、負債及

合約承諾能達到其融資需求，並能

經常符合法定的流動資金比率。在

以上附註(A)中披露，本集團二零零

三年十二月份綜合流動資金比率為

57.89%，二零零三年十二月三十一

日的平均流動資金比率為59.37%，

遠高於法定的25%最低要求。




The Asset and Liability Committee reviews the current and prospective funding

requirements for all operations through daily monitoring of the liquidity ratio and

the maturity mismatch profile. The liquidity risk is managed by holding sufficient

liquid assets (e.g. cash and short term funds and securities) of appropriate quality

to ensure that short term funding requirements are covered within prudent limits.

Current, fixed, and other deposits of customers form a significant part of the

Group’s overall funding. Its composition has remained relatively diversified and

stable. In order to lengthen the duration of the funding, the Bank periodically

issues certificates of deposits with maturities of not more than 5 years.

The liquidity ratios are disclosed in Note (A).

(iii) Capital management

The Group’s policy is to maintain a strong capital base to support the development

of the Group’s operations prudently, with the aim of diversifying its business

activities, including the future expansion of the branch network, increasing the

customer base, introducing new financial products and meeting the statutory

capital adequacy ratio. As disclosed in Note (A) above, both the Group’s adjusted

capital adequacy ratio incorporating market risk of 19.72% and the unadjusted

ratio of 19.79% as at 31 December 2003 was well above the statutory minimum

ratio.

資產及負債委員會透過日常流動資

金比率及到期資金錯配的監察，審

閱目前及未來整體運作的資金需求。

流動資金風險以持充裕的流動資產

（如現金及短期資金及證券）至合適

水平的方式管理，以確保在審慎的

資金限額內得以應付短期的資金需

求。

客戶的往來、定期及各類型的存款

構成本集團整體資金的重要部分。

其資金組合仍屬多元化及穩定。為

延長資金的存款期，本行定期發出

屆滿期不長於5年的存款證。

流動資金比率於附註 (A)披露。

(iii)資本管理

本集團擬維持雄厚的資本來支持本

集團審慎地開拓業務，務求使本集

團之業務更多元化，其中包括在未

來擴大分行網絡、增強客戶基礎，

以及提供更多全新金融產品等，及

符合法定之資本充足比率。在以上

附註(A)披露，本集團於二零零三年

十二月三十一日之經調整資本充足

比率（包括市場風險）為19.72%及未

經調整比率則為19.79%，實已遠高

於法定最低要求。




Capital is allocated to the various activities of the Bank depending on the risk

taken by each business division. Where the subsidiaries are directly regulated by

other regulators, they are required to maintain minimum capital according to the

regulators’ rules. Certain financial subsidiaries, as specified by the HKMA, are

subject to the HKMA’s capital requirements for its regulatory purposes.

Capital adequacy ratios and components of the capital base are disclosed in Note

(A) and Note (B).

(iv)Market risk management

Market risk

Market risk is the risk that movements in market rates and prices, such as interest

rates and foreign exchange rates on the Bank’s assets, liabilities and commitments

will result in profits or losses to the Group. Market risk arises on financial

instruments which are valued at current market prices (“marked to market”) and

those valued at cost plus any accrued interest (“accruals basis”).

The Bank transacts in the money market, foreign exchange market, equity market

and capital market giving rise to market risk exposures. Positions are taken as a

result of the execution of customers’ orders, market making activities, and

positions taken in order to hedge the Bank’s open position. The Bank does not

engage in proprietary trading of foreign exchange, but merely executes customer

orders.

本行因應各部門所面對的風險程度

將資本應用在不同業務上。若其附

屬公司由其他監管機構所管核，該

附屬公司須持有相關監管機構所規

定的最低資本水平。香港金融管理

局所指定的若干從事財務活動的附

屬公司，須遵守香港金融管理局要

求的資本規定。

資本充足比率及資本基礎組成部分

於附註 (A)及 (B)披露。

(iv)市場風險

市場風險

市場風險指市場息率及價格波動之

風險，如本銀行資產、負債及承擔

的息率及匯率等，會影響本集團之

溢利或虧損。市場風險產生於以目

前市價計值（「按市價計值」）及以成

本加任何應計利息計值（「權責發生

制」）的財務工具。

本銀行於貨幣市場、外匯市場、股

本市場以及資本市場進行業務，因

而面對市場風險。本銀行因應客戶

的指示、市場作價活動、為對沖本

銀行的未平倉盤而建立持倉。本銀

行並無進行自營外匯交易，僅會按

客戶需求而進行該類交易。




Financial instruments traded include debt, equity and other securities and certain

derivatives. Derivatives are contracts whose value is derived from one or more

underlying financial instruments or indices defined in the contract. They include

swaps, forward rate agreements, futures, options and combinations of these

instruments. Derivatives are used to manage the Bank’s own exposures to market

risk as part of its asset and liability management process. The principal derivatives

instruments used by the Bank are interest, equity and foreign exchange rate

related contracts, which are primarily over-the-counter derivatives. Most of the

Bank’s derivatives positions have been entered into to meet customer demand and

to hedge these and other trading positions.

Risk management

The Group has established clear market risk policies, including limits, reporting

lines and control procedures, which are reviewed regularly and approved by the

Directors. Market risk is managed within various limits approved by the Executive

Committee. These limits are determined for each financial instrument and include

limits on product volume, gross and net positions, position concentrations, mark

to market limits, stop loss limits and risk position limits.

財務工具交易會以包括債務、股本

及其他證券以及若干衍生工具進行。

衍生工具乃以合約所訂明的某一種

或多種相關財務工具或指數而產生

價值的合約。衍生工具包括掉期、

遠期匯率協議、期貨、期權以及上

述工具的組合。衍生工具的用途是

管理本銀行本身的市場風險，作為

其資產及負債管理程序的一部分。

本銀行所採用的衍生工具主要為利

率、股本及匯率相關合約等場外交

易衍生工具。本銀行大部分衍生工

具倉盤目的乃應付客戶需求及對沖

該等及其他買賣倉盤。

風險管理

本集團已成立清晰的市場風險政策，

包括風險限額、呈報範圍及控制程

序，並由董事定期檢討及審批。市

場風險乃按執行委員會所通過的不

同限額加以管理。此等限額乃為各

項金融工具而釐定，包括各類產品

限額、持倉總額及淨額、持倉集中

限額、按市值計算的產品限額、止

蝕限額，以及持倉風險限額。




The Group uses a value-at-risk (“VaR”) measure as a mean of controlling the

Bank’s market risk. The VaR is an estimate, with a defined confidence level, of the

potential loss which might arise due to changes in the value of investment

portfolios, if positions were held unchanged for one business day. The calculation

uses the variance-covariance model as the means to estimate the statistical

confidence level. The Bank estimates the VaR of its investment portfolios with a

confidence level of 95% and 99%. In addition, stress testing is performed on the

portfolios and on a consolidated basis to assess the potential income statement

impact as a result of extreme movements in market prices. The 95% and 99%

VaR for the Bank’s investment portfolio, including Hong Kong Exchange Fund Bills,

at 31 December 2003 were HK$15,357,335 and HK$21,720,165 respectively. The

average VaR at 95% and 99% confidence level for 2003 were HK$11,738,378

and HK$16,601,808 respectively.

Market risk exposure

The Group adopts a prudent approach to managing its trading portfolios, and

reduces any excessive market risk by executing offsetting transactions or hedging

contracts with other market counterparties. Market risk ensues once the Group

takes positions in markets such as foreign exchange, interest rates, securities and

equities. Such positions are driven by execution of customer orders, proprietary

trading and hedging.

本集團採取風險值（「風險值」）措施，

以控制本行市場風險的方法。風險

值乃一項對潛在虧損評估數字（其

中包括明確的信心水平）。如持倉

量於一個營業日內維持不變，有關

潛在虧損可能因投資組合的價值變

動而上升。計算方式乃使用方差與

協方差模式估計統計數字信心水平。

本行預期其投資組合的方差與協方

差的信心水平為95%及99%。此外，

投資組合須接受壓力測試，並以綜

合基準評估因市場價格極端變動對

收益表的潛在影響。本銀行投資組

合（包括香港外匯基金票據）之95％

及99％水平風險值於二零零三年十

二月三十一日分別為15,357,335港元

及21,720,165港元。二零零三年度

95%及99%信心水平之平均風險值

分別為11,738,378港元及16,601,808

港元。

市場風險承擔

本集團採納一套謹慎的方法，以管理

其交易組合，並透過其他市場同業簽

訂抵銷交易或對沖合約，以減低任何

過度市場風險。若本集團於外匯市場，

利率市場或證券及股票市場持倉時便

會產生市場風險，而這是因應客戶

的指示、自營買賣及對沖活動時進行

的交易。




The Group’s maximum market risk exposures are set by the Asset and Liability

Committee. Exposures are monitored and reported to the management regularly.

The average daily revenue generated from the treasury’s trading activities for the

year was HK$62,120 and the standard deviation was HK$65,785. An analysis of

the Group’s trading revenue is shown below:

Daily Distribution of Trading Revenue for the Year 2003 (Jan – Dec)二零零三年度（一至十二月）每日交易收益分佈

-150

Num

ber

of D

ays

日數

Revenue (HK$’000)收入（千港元）

1 1 1 1 2

14

21 21

32

40

262624

1312

86 5

2 2

4 43 3

1 12

1 1 11

16

-100 -5

0 0 50 100

150

200

250

300

350

400

450

500

550

600

0

5

10

15

20

25

30

35

40

45

This shows a maximum daily loss of HK$146,714 with 20 days out of 296 days

showing losses. The most frequent result was a daily revenue falling between

HK$40,000 to HK$50,000 with 40 occurrences. The highest daily revenue was

HK$538,710.

本集團之最高市場風險承擔由資產

及負債委員會訂定。並定期監控及

向管理層匯報。年度內由財資交易

活動中獲得的平均每日收益為62,120

港元，標準偏差為65,785港元。本

集團之交易收益分析如下：

以上圖表顯示於296個成交日中，

20天錄得虧損，最高每日損失

146,714港元。最頻密交易成績為每

日收益為40,000港元至50,000港元，

並出現了40次。最高每日收益為

538,710港元。

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租購及租賃生產機械文儀器材醫療儀器躉船、拖船、遊艇私家車、貨車、客運車及的士存貨貸款進口設備信用證工商樓宇按揭貸款車位按揭貸款商業貸款私人貸款

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IBA Credit Limited

Hire Purchase and LeasingProduction MachineryOffice EquipmentMedical and Dental InstrumentsBarges, Tug-boats and Pleasure BoatsPrivate Cars, Goods Vehicles, Passenger Cars and Taxis

Stocking LoansL/C for Imported EquipmentIndustrial and Commercial Property Mortgage LoansCar Park Mortgage LoansBusiness LoansPersonal Loans

IBA Network港基銀行網絡

總辦事處 HEAD OFFICE香港中環德輔道中38 號 International Bank of Asia Building港基銀行大廈 38 Des Voeux Road Central, Hong Kong電話：(852) 2842 6222 Tel: (852) 2842 6222傳真：(852) 2810 1483 Fax: (852) 2810 1483電郵：[email protected] E-mail: [email protected]網址：www.iba.com.hk Website: www.iba.com.hk

主要附屬公司 PRINCIPAL SUBSIDIARIES港基國際財務有限公司 IBA Credit Limited港基國際資金管理有限公司 IBA Fund Management LimitedMars (Nominees) Limited Mars (Nominees) LimitedIBA Bank Limited (Vanuatu) IBA Bank Limited (Vanuatu)港基國際證券有限公司 IBA Securities Limited

港基分行 IBA BRANCHES香港 Hong Kong

中環總行 Central Main Branch德輔道中38號港基銀行大廈 International Bank of Asia Building, 38 Des Voeux Road Central2842 6004 2842 6004

上環 Sheung Wan德輔道中210號顏氐大廈地下及一樓 G/F. and 1/F., Ngan House, 210 Des Voeux Road Central2815 9322 2815 9322

皇后大道東 Queen’s Road East皇后大道東213號胡忠大廈地下二號舖 Shop 2, G/F., Wu Chung House, 213 Queen’s Road East2591 1036 2591 1036

灣仔 Wanchai灣仔道113號地下 G/F., 113 Wanchai Road2891 7968 2891 7968

跑馬地 Happy Valley成和道25-27號雅緻苑地下 G/F., Rosedale Garden, 25-27 Sing Woo Road2591 1323 2591 1323

銅鑼灣 Causeway Bay軒尼詩道439-445號香島大廈地下 G/F., Island Building, 439-445 Hennessy Road2881 7291 2881 7291

北角 North Point英皇道334-336號青雲大廈地下二號舖 Shop 2, G/F., Tsing Wan Building, 334-336 King’s Road2512 8313 2512 8313

太古城 Taikoo Shing太古城中心第二期地下3-4號舖 Unit 3-4, Cityplaza II, Taikoo Shing2885 4577 2885 4577

柴灣 Chaiwan柴灣道111號高威廣場地下82, 83, 85 及 86 號舖 Shops 82, 83, 85 & 86, Lower G/F., Koway Plaza, 111 Chaiwan Road2595 0663 2595 0663

堅尼地城 Kennedy Town士美非路12F-12G 文光閣地下B舖 Shop B, G/F., Man Kwong Court, 12F-12G Smithfield2855 1233 2855 1233


九龍 Kowloon

九龍總行（旺角） Kowloon Main Branch (Mongkok)旺角彌敦道731號地下及一樓 G/F & 1/F., 731 Nathan Road2390 2882 2390 2882

尖沙咀 Tsimshatsui金馬倫道10-10A宏威中心地下 G/F., Grand Right Center, 10-10A Cameron Road2721 6104 2721 6104

佐敦道 Jordan Road吳淞街131-137號嘉和大廈地下A舖 Shop A, G/F., Ka Woo Building, 131-137 Woo Sung Street2302 1502 2302 1502

旺角 Mongkok彌敦道602號總統商業中心地下 G/F., President Commercial Center, 602 Nathan Road2385 6034 2385 6034

深水叅 Sham Shui Po南昌街128-136號南邦大廈地下 G/F., Nam Pont Mansion, 128-136 Nam Cheong Street2381 2273 2381 2273

長沙灣 Cheung Sha Wan青山道220-240A號永隆大廈地下D及E舖 Shop D & E, G/F., Wing Lung Building, 220-240A, Castle Peak Road2387 0338 2387 0338

美孚新擥 Mei Foo Sun Chuen蘭秀道26號B地下 G/F., 26B Nassau Street2742 9911 2742 9911

牛頭角 Ngau Tau Kok牛頭角道325號觀塘立城大廈地下K舖 Shop K, G/F., Kwun Tong Lap Shing Building, 325 Ngau Tau Kok Road2344 6991 2344 6991

麗晶花園 Richland Gardens宏光道麗晶花園商場111-112 及 117-118號舖 Shops 111-112 & 117-118, Richland Gardens, Commercial Complex, Wang Kwong Road2796 2575 2796 2575

紅磡 Hunghom黃埔新擥德民街13號地下A3號舖 Shop A3, G/F., 13 Tak Man Street, Wong Po Sun Tsuen2954 2331 2954 2331

新界 New Territories

荃灣 Tsuen Wan大河道22-28號榮安大廈地下及一樓 G/F & 1/F., Wing On Mansion, 22-28 Tai Ho Road2402 1006 2402 1006

屯門 Tuen Mun啟民徑15-45號美囱樓地下11號舖 Shop 11, G/F., Mei Hang Building, 15-45 Kai Man Path2440 3039 2440 3039

元朗 Yuen Long教育路九號興發大廈地下 G/F., Hing Fat House, 9 Kau Yuk Road2479 0236 2479 0236

大埔 Tai Po安慈路翠屏花園地下28舖 Shop 28, G/F., Jade Plaza, On Chee Road2667 1517 2667 1517

沙田中心 Shatin Center橫壆街2-16號沙田中心商場31L號舖 Shop 31L, Shatin Center, 2-16 Wang Pok Street2605 7737 2605 7737

大圍 Tai Wai大圍道21號金山樓地下六號舖 Shop 6, G/F., Kam Shan Building, 21 Tai Wai Road2602 8288 2602 8288


港基「薈晉」理財中心 IBA Wealth Management Centers香港 Hong Kong

銅鑼灣 Causeway Bay軒尼詩道439-445號香島大廈閣樓 M/F., Island Building, 439-445 Hennessy Road2832 2070 2832 2070

北角 North Point英皇道338號華懋交易廣場第二期地下二號舖 Shop 2, G/F., Two Chinachem Exchange Square, 338 King’s Road2802 3888 2802 3888

九龍 Kowloon

紅磡 Hunghom民泰街31號永榮大廈地下C2號舖 Shop C2, G/F., Wing Wing Building, 31 Man Tai Street2627 0880 2627 0880

觀塘 Kwun Tong牛頭角道327-333號嶋林大廈地下二號舖 Unit 2, G/F., Kentlum Mansion, 327-333 Ngau Tau Kok Road2797 0366 2797 0366

美孚新擥 Mei Foo Sun Chuen萬事達廣場一樓N94號舖 Shop N94, 1/F., Mount Sterling Mall2620 0383 2620 0383

旺角 Mongkok彌敦道602-608號總統商業中心六樓605-606室 Unit 605 & 606, 6/F., President Commercial Center, 602-608 Nathan Road2770 0170 2770 0170

新界 New Territories

荃灣 Tsuen Wan大河道22-28號榮安大廈二樓 2/F., Wing On Mansion, 22-28 Tai Ho Road2357 9888 2357 9888

沙田 Shatin橫壆街2-16號沙田中心商場20號舖 Shop 20, Level 3, Shatin Center, 2-16 Wang Pok Street2605 6789 2605 6789

元朗 Yuen Long教育路18-24號元朗商業中心二樓 2/F., Yuen Long Commercial Center, 18-24 Kau Yuk Road2869 6389 2869 6389

屯門 Tuen Mun仁政街26-40號富囱大廈地下六號舖 Shop 6, G/F., Fu Hang Mansion, 26-40 Yan Ching Street2440 6626 2440 6626

「薈智」私人銀行中心 Ambassador Privileged Banking Center中環德輔道中38號港基銀行大廈二樓 2/F., International Bank of Asia Building, 38 Des Voeux Road Central2842 6008 2842 6008

中環股票中心 Central Stock Trading Center中環德輔道中38號港基銀行大廈一樓 1/F., International Bank of Asia Building, 38 Des Voeux Road Central2842 6161 2842 6161

港基私人貸款中心 IBA Consumer Finance Centers銅鑼灣 Causeway Bay軒尼詩道375-379號利威商業大廈11樓 11/F., Lee West Commercial Building, 375-379 Hennessy Road2926 6282 2926 6282

旺角 Mongkok彌敦道576號和富商業大廈26樓 26/F., Wo Foo Commercial Building, 576 Nathan Road2926 6281 2926 6281

荃灣 Tsuen Wan大河道22-28號榮安大廈二樓 2/F., Wing On Mansion, 22-28 Tai Ho Road2926 6283 2926 6283

沙田 Shatin橫壆街1-15號好運中心地下3A號舖 Shop No. 3A, G/F., Lucky Plaza, 1-15 Wang Pok Street2926 6284 2926 6284

international bank of asia limitedcorporate finance at ubs warburg. currently, mr. ng is senior...

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