Notes on the Accounts
   
 
1. Principal Accounting Policies
(a)
   Fixed assets depreciation
Bank premises are depreciated on a straight line basis over their estimated useful lives of 50 years. Furniture, Fixtures and equipments are depreciated on a straight line basis over their estimated useful lives.
(b)
Translation of foreign currencies
Assets and liabilities in foreign currencies are translated into Patacas at approximately the market rates of exchange ruling at the balance sheet date. Exchange differences are dealt with in the profit and loss account.
(c)
Provision for doubtful debts
Provision is made against amounts due by customers as and when they are considered as doubtful. In addition, amounts have been set aside as general provisions.
(d)

Investment Securities
Investment securities with fixed maturities were carried at cost, increased by the accretion of discounts and decreased by the amortization of premiums over the periods from the dates of purchased to the dates of redemption. Other investment securities were carried at cost.

2. Taxation
  The provision for profit tax is based on an estimate of the assessable profits for the year ended 31st December, 2002 at 15%.
   
3. Profit
 

The profit for the year of the Bank is stated after:
(a) Provision for taxation;
(b) Provision for depreciation of fixed assets;
(c) Provision for doubtful debts; and
(d) Auditor's remuneration.
   
4. Other Accounts
  Included under this heading are the provision for taxation.

 

       
  5. Other Operating Income  
       
       
    Fees and commission income  
    Fees and commission expenses  
    Net fees and commission income  
    Income from investments in securities  
    Gains less losses arising from dealing in  
    foreign currencies  
    Gains from other dealing activities  
    Other operating income  
       
       
  6. Operating Expenses  
       
       
    Staff costs  
    Premises and equipment expenses  
    Depreciation  
    General and administration expenses  
    Other operating expenses  
       
   
   
2002
(MOP)
59,941,471.26  
(21,432,680.32 )
38,508,790.94  
3,926,994.34  
71,412,109.77  
   
11,640,513.55  
10,525,770.83  
136,014,179.43  
   
   
2002
(MOP)
112,997,836.31  
13,658,670.51  
33,360,756.33  
20,493,824.71  
10,667,802.23  
191,178,890.09  
   
   
2001
(MOP)
63,662,116.21  
(3,912,015.56 )
59,750,100.65  
3,188,546.80  
67,781,249.91  
   
5,371,745.09  
1,297,631.67  
137,389,274.12  
   
   
2001
(MOP)
113,410,269.28  
15,909,800.28  
65,108,768.41  
20,223,046.77  
4,228,769.46  
218,880,654.20  

 

       
  7. Fixed Assets  
       
       
    Cost  
    ¡@At beginning of year  
    ¡@Additions  
    ¡@Disposals  
    ¡@At end of year  
       
    Accumulated Depreciation  
    ¡@At beginning of year  
    ¡@Provided during the year  
    ¡@Disposals  
    ¡@At end of year  
       
    Net Book Value  
    ¡@At end of year  
       
    ¡@At beginning of year  
   
   
Bank Premises
(MOP)
   
556,306,566.53
  
25,515,105.75
  
(19,427,147.00
 )
562,394,525.28
  
   
   
131,461,776.84  
16,126,877.13  
---  
147,588,653.97  
   
   
414,805,871.31  
   
424,844,789.69  
   
   
Furniture Fixtures
and Equipment
(MOP)
   
323,837,428.36  
13,773,558.46  
(3,703,817.19 )
333,907,169.63  
   
   
289,596,629.29  
17,233,879.20  
(3,703,817.19 )
303,126,691.30  
   
   
30,780,478.33  
   
34,240,799.07  
   
   
Total
(MOP)
   
880,143,994.89  
39,288,664.21  
(23,130,964.19 )
896,301,694.91  
   
   
421,058,406.13  
33,360,756.33  
(3,703,817.19 )
450,715,345.27  
   
   
445,586,349.64  
   
459,085,588.76  

 

             
    8. Investments
      (a)
   Listed Investments
  
          shares listed in Hong Kong
  
      (b)
   Certificates of Deposits maturity  
          within one year
  
          over one year
  
      (c)
   Bonds and Commercial papers maturity
  
          within one year
  
          over one year
  
      (d)
   Other Investments
  
       
             
    9. Advances to customers  
      (Less provisions)
       
      Total advances to customers
  
      Less: specific provisions
  
      general provisions
  
       
       
      Movements of provisions
      for bad and doubtful
      Balance at 1 January 2002
  
      Amounts written off
  
      Charge for the year
  
      Transfer from general to specific provisions
  
      Balance at 31 December 2002
  
       
       
      Balance at 1 January 2001
  
      Amounts written off
  
      Charge for the year
  
      Transfer from general to specific provisions
  
      Balance at 31 December 2001
  
   
   
   
   
   
   
   
   
   
   
   
   
   
   
2002
(MOP)
7,135,358,268.34
  
(223,002,118.72
 )
(60,822,533.65
 )
6,851,533,615.97
  
   
   
SPECIFIC
348,865,515.61
  
(343,989,178.75
 )
188,117,681.36
  
30,008,100.50
  
223,002,118.72
  
   
SPECIFIC
528,127,788.11
  
(338,930,406.31
 )
151,194,004.04
  
8,474,129.77
  
348,865,515.61
  
   
(MOP)
   
3,319,262.88  
   
295,564,783.55
  
1,044,875,720.59
  
   
773,627,997.14
  
1,835,362,085.07
  
28,557,005.96
  
3,981,306,855.19
  
   
   
2001
(MOP)
7,389,071,272.15
  
(348,865,515.61
 )
(90,830,634.15
 )
6,949,375,122.39
  
   
   
GENERAL
90,830,634.15
  
   
   
(30,008,100.50
 )
60,822,533.65
  
   
GENERAL
99,304,763.92
  
   
   
(8,474,129.77
 )
90,830,634.15
  
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
TOTAL
439,696,149.76
  
(343,989,178.75
 )
188,117,681.36
  
0.00
  
283,824,652.37
  
   
TOTAL
627,432,552.03
  
(338,930,406.31
 )
151,194,004.04
  
0.00
  
439,696,149.76
  

 
 
       
  10. Cash in hand and deposits with Banks  
       
       
    Cash in hand and balances with banks and
  
    with monetary authority  
    Placements with other banks
  
    (repayable within three months)  
    Placements with other banks & current
  
    assets (notes 1)  
       
       
  11. Other Accounts - Liabilities  
       
    Other liabilities (notes 2)
  
    Taxation
  
    Proposed dividend
  
       
   
   
2002
(MOP)
511,871,499.48
  
   
8,639,209,971.00
  
   
1,673,192,798.26
  
   
10,824,274,268.74
 
   
2002
(MOP)
1,709,730,848.46
  
14,400,000.00
  
60,000,000.00
  
1,784,130,848.46