The directors have pleasure in presenting their report together with the audited accounts for the year ended 31st December, 2002.

Principal Activities
The Bank is engaged in commercial banking business and related financial services.

Accounts
The profit of the Bank for the year ended 31st December, 2002 and the state of the Bank’s affairs as at that date are set out in the accounts on pages 14 to 29.

A final dividend of MOP50 per share, totalling to MOP50,000,000 was paid during the year ended 31st December, 2002. An amount of MOP19,500,000 was transferred to reserves during the year ended 31st December, 2002.

The directors propose transfers of MOP17,010,000 to reserves and a final dividend of MOP60 per share, totalling to MOP60,000,000 for the year ended 31st December, 2002 for approval by the shareholders at the Annual General Meeting to be held in 2003.

Fixed Assets
Movements in fixed assets during the year are set out in note 7 to the accounts.

Directors
The directors during the year are listed on page 31.

Auditors
The accounts for the year ended 31st December,2002 were audited by Iong Hin.

On behalf of the Board
Fung Ka York
Chairman
Macau, 27th March, 2003