Supplementary Information

Decade at a Glance

Bank – Based on Financial Statements Prepared Under SLASs

Year ended December 31, Rs. Mn. 2007 2008 2009 2010
Operating Results
Income 35,223 44,115 43,741 41,522
Interest income 30,503 37,188 35,925 34,740
Interest expenses (18,951) (24,336) (23,515) (18,328)
Foreign exchange profit 1,545 2,633 2,962 1,741
Commission and other income 3,175 4,294 4,854 5,041
Operating expenses and provisions (9,567) (12,259) (13,035) (13,876)
Profit before income tax 6,705 7,520 7,191 9,318
Income tax on profit (2,601) (3,252) (2,887) (3,794)
Net profit for the year 4,104 4,268 4,304 5,524

As at December 31, Rs. Mn. 2007 2008 2009 2010
Assets
Cash and short-term funds 16,208 24,115 24,057 10,557
Balances with Central Banks 11,576 10,322 11,795 12,189
Government Treasury Bills, Bonds and other Securities 49,863 51,633 96,671 114,541
Commercial paper – – – –
Securities purchased under resale agreements 3,804 3,400 5,203 68
Dealing securities 207 58 81 283
Investments – Held-for-sale 205 – – –
Investments – Held-to-maturity 1,756 1,197 1,025 2,366
Bills of Exchange 3,195 3,059 2,847 5,291
Lease receivable 10,945 9,484 7,794 11,019
Loans and advances 160,184 167,858 161,329 200,729
257,943 271,126 310,802 357,043
Investments in subsidiaries 434 434 279 354
Investments in associates 44 44 44 44
Property, plant & equipment and intangible assets 3,768 4,098 4,382 6,428
Other assets 5,751 5,512 6,808 6,191
Total assets 267,940 281,214 322,315 370,060
Liabilities
Deposits from customers 183,110 199,881 234,745 259,779
Dividends payable 113 – – –
Borrowings 18,752 13,620 11,639 14,371
Securities sold under repurchase agreements 23,342 25,075 29,905 45,774
Other liabilities 10,308 10,646 12,888 12,259
Tax payable 1,698 1,665 1,203 2,448
Debentures 6,680 4,436 3,436 2,127
Total liabilities 244,003 255,323 293,816 336,758
Shareholders’ Funds
Share capital 10,515 10,548 10,608 10,811
Statutory reserve fund 1,634 1,896 2,164 2,472
Reserves 11,788 13,447 15,727 20,019
Total liabilities and shareholders’ funds 267,940 281,214 322,315 370,060
Commitments and contingencies 116,212 115,809 146,072 196,617

Bank – Based on Financial Statements Prepared Under SLFRSs and LKASs

Year ended December 31, Rs. Mn. 2011 2012 2013 2014 2015 2016 CAGR %
Operating Results
Income 45,860 63,395 73,736 72,753 77,868 93,143 15.22
Interest income 38,356 52,685 62,764 61,832 66,030 80,738
Interest expenses (19,650) (29,830) (36,879) (34,610) (35,685) (47,915)
Foreign exchange profit 2,322 4,687 1,996 1,481 2,877 2,326
Commission and other income 5,182 6,023 8,976 9,440 8,961 10,079
Operating expenses and provisions (15,313) (19,270) (22,347) (22,407) (25,040) (25,176)
Profit before income tax 10,897 14,295 14,510 15,736 17,143 20,052 12.97
Income tax on profit (3,014) (4,197) (4,065) (4,556) (5,240) (5,539)
Net profit for the year 7,883 10,098 10,445 11,180 11,903 14,513 12.98
As at December 31, Rs. Mn. 2011 2012 2013 2014 2015 2016 CAGR %
Assets
Cash and cash equivalents 12,911 19,733 14,262 20,592 20,044 30,194
Balances with Central Banks 17,343 18,168 18,432 19,634 28,221 43,873
Placements with banks 11,674 16,163 4,132 14,508 17,194 11,718
Securities purchased under resale agreements 1,542 3,697 8,946 41,198 8,002 –
Derivative financial assets 40 1,351 838 460 4,118 1,053
Other financial investments – Held-for-trading 6,418 6,041 6,379 6,327 7,656 4,988
Loans and receivables to banks 580 629 546 551 601 624 16.54
Loans and receivables to other customers 286,314 337,247 353,062 405,431 508,115 616,018
Financial investments – Available-for-sale 61,415 57,963 131,757 214,208 204,244 160,023
Financial investments – Held-to-maturity – – – – – 60,981
Financial investments – Loans and receivables 26,630 31,971 48,943 50,436 57,724 51,824
424,867 492,963 587,297 773,345 855,919 981,296
Investments in subsidiaries 315 303 289 1,211 1,237 2,435
Investments in associates 44 44 44 44 44 44
Property, plant & equipment 7,907 8,221 8,387 9,953 9,969 10,308
Intangible assets 467 497 468 439 466 641
Leasehold property 78 77 76 75 74 74
Deferred tax assets 360 449 – – – 964
Other assets 7,291 9,189 9,426 10,543 12,096 16,439
Total assets 441,329 511,743 605,987 795,610 879,805 1,012,201 18.06
Liabilities
Due to banks 11,574 4,894 14,194 25,261 30,319 67,609
Derivative financial liabilities 435 84 1,412 1,193 1,891 1,515
Securities sold under repurchase agreements 41,235 31,760 45,519 124,564 112,385 69,867
Other financial liabilities – Held-for-trading – – – – – –
Due to other customers/Deposits from customers 323,755 390,612 451,153 529,361 624,102 739,563 17.96
Other borrowings 8,368 15,823 8,654 11,637 9,986 9,270
Debt securities issued – – – – – –
Current tax liabilities 1,305 2,802 1,759 1,998 3,002 3,441
Deferred tax liabilities 1,594 1,698 1,563 2,574 231 –
Other provisions 1 2 2 2 2 2
Other liabilities 8,162 10,363 9,827 17,444 15,547 17,710
Due to subsidiaries 30 22 16 19 26 20
Subordinated liabilities 1,106 1,106 10,944 11,045 11,973 24,850
Total liabilities 397,565 459,166 545,043 725,098 809,464 933,847
Equity
Stated capital 16,474 18,009 19,587 21,458 23,255 24,978
Statutory reserves 2,890 3,433 4,035 4,327 4,922 5,648
Retained earnings 2,547 4,178 4,233 4,258 4,389 4,464
Other reserves 21,853 26,957 33,089 40,469 37,775 43,264
Total liabilities & shareholders’ funds 441,329 511,743 605,987 795,610 879,805 1,012,201 18.06
Commitments and contingencies 234,551 279,593 295,452 352,453 521,232 498,305

Bank – Based on Financial Statements Prepared Under SLASs

Year ended December 31, Rs. Mn. 2007 2008 2009 2010
Ratios
Return on average shareholders’ funds (%) 20.63 17.13 15.83 17.87
Income growth (%) 43.95 25.25 (0.85) (5.07)
Return on average assets (%) 1.67 1.55 1.43 1.60
Dividend per share (Rs.) 7.00 7.00 7.00 7.00
Ordinary share dividend cover (times) 2.29 2.42 2.46 2.09
Gross dividends to ordinary shareholders (Rs. Mn.) 1,743.13 1,745.81 1,751.47 2,642.25
Advances to deposits and refinance (%) 91.75 87.12 70.88 80.97
Property, Plant & Equipment to shareholders’ funds (%) 15.74 15.83 15.38 19.30
Total assets to shareholders’ funds (times) 11.19 10.86 11.31 11.11
Capital funds to liabilities including contingent liabilities (%) 7.87 6.98 6.48 6.26
Cost/income ratio (%) 47.87 50.46 56.86 54.69
Liquid assets to liabilities (%) 24.24 24.83 38.80 29.74
(As specified in the Banking Act No. 30 of 1988)
Group Capital Adequacy (%) Tier I 10.60 10.55 11.92 10.86
Tier I & II 13.71 13.13 13.93 12.26
Share Information
Market value of a share (Rs.) 147.00 67.00 189.50 259.90
Earnings per share (Rs.) 5 6 6 7
Price earnings ratio (times) 9 4 11 18
Net assets value per share (Rs.) 30 34 38 44
Earnings yield (%) 11 25 9 6
Dividend payout ratio (%) – Cash 44 41 41 34
Total dividend payout ratio (%) – – – 48
Other Information
Number of employees 3,745 4,041 4,071 4,321
Number of delivery points – Sri Lanka 163 170 172 187
Number of delivery points – Bangladesh 9 11 15 17
Number of automated teller machines 301 346 368 414

Bank – Based on Financial Statements Prepared Under SLFRSs and LKASs

Year ended December 31, Rs. Mn. 2011 2012 2013 2014 2015 2016 CAGR %
Ratios
Return on average shareholders’ funds (%) 20.28 20.96 18.40 17.01 16.90 19.52
Income growth (%) 10.45 38.24 16.31 (1.33) 7.03 19.62
Return on average assets (%) 1.94 2.12 1.87 1.60 1.42 1.53
Dividend per share (Rs.) 6.00 6.50 6.50 6.50 6.50 6.50
Ordinary share dividend cover (times) 1.61 1.86 1.89 1.99 2.09 2.25
Gross dividends to ordinary shareholders (Rs. Mn.) 4,904.70 5,421.42 5,522.47 5,630.32 5,700.22 5,793.93
Advances to deposits and refinance (%) 83.30 82.01 77.48 75.89 80.84 82.69
Property, plant & equipment to equity (%) 19.31 16.73 14.65 14.85 14.94 14.07
Total assets to equity (times) 9.92 9.73 9.94 11.28 12.51 12.92
Capital funds to liabilities including contingent liabilities (%) 6.92 7.12 7.25 6.54 5.29 5.47
Cost/income ratio (%) 50.70 47.02 45.59 49.26 48.92 51.06
Liquid assets to liabilities (%) 26.35 25.79 34.05 33.11 27.72 27.41
(As specified in the Banking Act No. 30 of 1988)
Group Capital Adequacy (%) Tier I 12.11 12.63 13.30 13.07 11.55 11.59
Tier I & II 13.01 13.84 16.93 16.22 14.28 16.01
Share Information
Market value of a share (Rs.) 100.00 103.00 120.40 171.00 140.20 145.00
Earnings per share (Rs.) 9 12 12 13 13 16
Price earnings ratio (times) 11 9 10 13 10 9
Net assets value per share (Rs.) 54 63 72 81 80 88
Earnings yield (%) 9 12 10 8 10 11
Dividend payout ratio (%) – Cash 42 37 37 35 33 28
Total dividend payout ratio (%) 62 54 53 50 48 40
Other Information
Number of employees 4,524 4,602 4,730 4,852 4,951 4,987
Number of delivery points – Sri Lanka 213 227 235 239 246 255 3.56
Number of delivery points – Bangladesh 17 17 18 18 18 19
Number of automated teller machines 514 572 604 625 640 677 5.66

CAGR – Compounded Annual Growth Rate

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