POST OFFICE SAVINGS BANK Annual Report & Accounts 1980 Contents Chairman's Report 3 Organisational Structure 5 The Year in Review 7 Service Consciousness 13 POSB Loan Schemes 19 Community Relations 21 Personnel 23 Financial Statements 24 Statistical Data 28 Directory of Offices, Subsidiary & Associated Companies 30 Highlights of 1980 * Inclusive of earned interest and SAYE (Bonus) Contracts. Board of Directors Chairman (L to R): MrNg Kiat Chong, Mr Michael Wee, Mr Tan Chok Kian Mr F J D'Costa, Mr Tan Chok Kian, Mr Wong Lee Hoong, Mr Ng Tee Geok, Mr Lee Hock Ley. Deputy Chairman Mr Wong Lee Hoong Directors Mr F J D'Costa Mr Lim Hong Keat Mr Ng Tee Geok Mr Robert Iau (up to 1 Oct 1980) Mr Michael Wee Mr Ng Kiat Chong (from 1 Jan 1981) Mr Lee Hock Ley (from 1 Jan 1981) Chairman's Report In November 1980, the POSB introduced the As an extension to the branch expansion programme, PASSCARD Account, a retail banking concept new to we introduced during 1980 the concept of the Principal Singapore. This personalised and convenient transaction Branch. The objective in this instance is to make facility serves as an alternative to the traditional available a comprehensive range of services including passbook. The Passcard eliminates updating at counters, higher withdrawal facilities to the Principal Branches. which is a time-consuming process. Transactions are, therefore completed in a shorter time. The POSB remains confident of growth in the future while accepting that growth rates per se will moderate The public response to this new service has been most somewhat as our deposit base expands. On a deposit encouraging. The PASSCARD was introduced on base of $2,785 million, we recorded a modest growth November 24, 1980 and by the end of the year — ie rate of 9.1% in 1980 while the total number of accounts just slightly over a month — nearly 12,000 depositors at almost 1.9 million grew by 11%, a very satisfactory had opened PASSCARD Accounts with the Bank. growth considering that our population numbered just Last year, I reported on the introduction of our about 2.4 million. Cash-On-Line self-service banking facility through the On behalf of the Board of Directors, I would like to installation of automated tellers. The expansion of this express my deep appreciation to the staff for their hard facility progressed satisfactorily during 1980. Up to work and dedication to the Bank. Without their March 1981, the number of ATMs installed was 22 steadfast contribution, another year of progress and including two through-the-wall models. service would not have been possible. We opted for this modern mechanised facility to save manpower and to reduce queues at our counters. This objective has been met. The number of Cash.On.Line cardholders stood at slightly over 69,000 at the end of the year. Transactions handled by the tellers amounted to over 409,000 at a monthly average of over 34,000 transactions. To provide greater convenience, we have extended self-service banking to Sundays at tellers located in departmental stores and supermarkets. TAN CHOK KIAN The expansion of the Cash-On-Line tellers goes hand in Chairman, POSB hand with the Bank's branch expansion programme, April 1981 particularly in new housing estates. Consequently, most of our branches opened last year were in estates such as Ang Mo Kio, Clementi, Bedok and Bukit Merah. The Bank has currently a network of 105 branches spread throughout the island. Principal Officers Organisational Structure General Manager Mr Bertie Cheng Controller, Finance & Operations Mr Tan Han Meng Head, Development & Property Department Mr Hiew Siew Nam Head, Data Processing Centre Mr Wee Tew Lim Head, Investment & Credit Department Mrs Margaret Koh Head, Personnel & Administration Department Mrs Kwok Moon Moi Head, Finance Department Miss Chua Bee Choo Head, Public Relations & Marketing Department Miss Nelly Menon Head, Training & Security Department Mr Vincent Sebastian Head, Operations Department Mr Cheah Pin Thong Head, Management Services Department Mrs Pearl See-Thoe A POSB Cash-On-Line teller located in a department store. The Year in Review The POSB entered the 1980s by introducing two new services during the year under review adding to the broad range of facilities which are already available to depositors. The two new services are the Passcard Number of accounts, 1972 - 1980 Account and the establishment of Principal Branches which was intended to decentralise and upgrade services at key Branches. The Bank's Cash-On-Line self- service facility introduced in 1979 was expanded with the installation of 19 additional automated tellers at different locations during the year. The POSB's overall business expanded at a slower pace than in the past. Although the volume of deposits placed with the Bank was higher in 1980 than in the previous year, the growth rate was lower due to the larger deposit base. POSB's share of the savings account market also showed a drop when compared with the share of the market held by commercial banks and finance companies. As the prime lending rate of commercial banks reached new peaks, interest rates on deposits, particularly fixed deposits also escalated. For most of 1980, Total depositors' balances, 1972 -1980 commercial banks were able to offer interest rates which were much more favourable than those offered by POSB. Also contributing to the slower growth was the bouyant property market and the volatile conditions which prevailed in the stock market in 1980. Slower Growth in Total Balances Total depositors' balances including SAYE contracts and interest earned at the end of 1980 stood at $2,785.8 million. The increase of $231.5 million or 9.1% was the lowest recorded since 1974. Night Banking at the Marine Parade POSB Branch. The Year in Review (continued) Accounts up by 11% For yet another year, the number of accounts with the Bank showed a steady increase. The total number of accounts at 1,898,264 was higher than the previous year's total Number of transactions, 1972 -1980 by 187,712. The growth rate was 11 per cent which compared favourably with the 12 per cent growth registered in 1979 on a larger volume increase in the number of accounts. Net Deposits Net deposits placed with the Bank (deposits over withdrawals) amounted to $69.6 million. Deposits totalling $3,581.4 million were placed with the Bank during the year. This was $960.0 million or 36.6 per cent higher than in 1979. However, the level of withdrawals was also higher and totalled $3,511.8 million. This was $1,271.6 million or 56.8% over that of 1979. The figures are inclusive of SAYE deposits and withdrawals. Record Transaction Level With the growing volume of the Bank's business, the number of transactions has shown a steady Number of POSB offices, 1972 - 1980 increase. A record level of 15.9 million transactions were handled during the year exceeding the previous year's total by 3.3 million or 26.6 per cent more than in the previous year. Longer banking hours, Saturday afternoon banking and Cash-On-Line transactions contributed to the greater volume. Cash Turnover The total cash turnover during 1980 also reached record levels at $7,093.2 million. The increase amounted to $2,231.6 million or 45.9 per cent. Through-the-wall model of the Cash-On-Line teller outside the Bedok North Branch. The Year in Review (continued) Interest Rates To keep interest rates in line with prevailing market rates and to ensure that depositors were given a fair return on savings, the Bank's interest rates on savings accounts were revised upwards twice during the year. The first revision was on May 1 when the first tier interest rate on balances up to $100,000 was raised from 6 per cent to 7 per cent per annum, while the second-tier rate on deposits in excess of $100,000 1 was increased from 4 /2 per cent to 5 per cent per annum. The second upward revision took place in December when the first tier rate offered on savings was set 1 at 8 /2 per cent and the second tier rate at 6 per cent. Interest Paid A total of $164.6 million was paid as interest on deposits placed with the Bank in 1980. The increase in the total interest credited to the depositors' accounts was $47.7 million or 40.8 per cent higher than in 1979. Equity in Marina Centre In January, the Bank took up a 10 per cent equity in Marina Centre Holdings. The company, formed to own and develop the Marina Centre project, was incorporated in November 1979 with a paid-up capital of $125 million. The Bank's equity of $12.5 million is held by POSB Investment Pte Ltd. Dr Koh Lip Lin, Member of Parliament for Nee Soon, unveils the plaque at the official opening of the Ang Mo Kio North POSB Branch (top right). A model of the Marina Centre development project in which POSB has an interest (right). The Passcard, yet another convenient service introduced by POSB during 1980. Service Consciousness The Bank's consciousness of the • Ang Mo Kio North Branch need to provide better services Blk 629, 1018 led to the expansion of the Ang Mo Kio Avenue 4 branch network, the extension of Singapore 2056 self-service banking through Cash-On-Line tellers at more The Clementi Central Branch was locations, longer banking hours and officially opened by Mr Chor Yeok through the introduction of new Eng, Senior Parliamentary Secretary services and facilities for depositors.