Statement of Profit or Loss

Bank

Group

For the year ended 31st December

2016

2015

2016

2015

Note

Rs 000

Rs 000

Rs 000

Rs 000

Gross income

7

84,350,823

61,153,466

95,990,771

70,026,698

Interest income

75,608,193

52,615,463

81,533,502

56,893,956

Less: Interest expenses

41,236,605

26,279,934

42,444,643

27,200,236

Net interest income

8

34,371,588

26,335,529

39,088,859

29,693,720

Fee and commission income

7,139,253

5,874,928

7,905,879

6,426,080

Less: Fee and commission expenses

90,594

98,622

180,531

182,093

Net fee and commission income

9

7,048,659

5,776,306

7,725,348

6,243,987

Net interest, fee and commission income

41,420,247

32,111,835

46,814,207

35,937,707

Net gain/(loss) from trading

10

(1,795,691)

196,993

(1,824,452)

212,364

Net gain from financial investments

11

111,713

253,858

103,165

297,978

Net insurance premium income

12

-

-

5,490,712

4,679,897

Other operating income

13

3,287,355

2,212,224

2,781,965

1,516,423

Total operating income

43,023,624

34,774,910

53,365,597

42,644,369

Less: Impairment charge for loans and other losses

14

237,160

931,925

508,159

1,022,111

Net operating income

42,786,464

33,842,985

52,857,438

41,622,258

Less : Operating expenses

Personnel expenses

15

8,703,575

7,927,695

10,416,099

9,155,160

Benefits, claims and underwriting expenditure

16

-

-

4,571,389

4,211,996

Other expenses

17

9,584,304

8,050,939

10,785,144

9,093,136

Total operating expenses

18,287,879

15,978,634

25,772,632

22,460,292

Operating profit before Value Added Tax (VAT) and

  Nation Building Tax (NBT) on financial services

24,498,585

17,864,351

27,084,806

19,161,966

Less: Value Added Tax (VAT) and

Nation Building Tax (NBT) on financial services

18

4,352,756

2,814,334

4,734,949

3,061,783

Operating profit after Value Added Tax (VAT)

 and Nation Building Tax (NBT) on financial services

20,145,829

15,050,017

22,349,857

16,100,183

Share of profit of joint venture (net of income tax)

19

-

-

148,790

60,085

PROFIT BEFORE INCOME TAX

20,145,829

15,050,017

22,498,647

16,160,268

Less: Income tax expense

20

6,002,423

4,601,231

6,833,685

5,064,424

PROFIT FOR THE YEAR

14,143,406

10,448,786

15,664,962

11,095,844

Profit attributable to:

 Equity holders of the Bank

14,143,406

10,448,786

14,755,634

10,553,568

 Non-controlling interests

-

-

909,328

542,276

PROFIT FOR THE YEAR

14,143,406

10,448,786

15,664,962

11,095,844

Earnings per share

21

Basic earnings per ordinary share (Rs)

34.25

25.41

35.73

25.67

Diluted earnings per ordinary share (Rs)

34.17

25.31

35.65

25.56

Dividend per share

Dividend per share: Gross (Rs)

*8.50

8.50

*8.50

8.50

The notes to the financial statements from pages 206 to 327 form an integral part of these financial statements.

*Calculated on interim dividend paid and final dividend proposed, which is to be approved at the Annual General Meeting.

Statement of Comprehensive Income

Bank

Group

For the year ended 31st December

2016

2015

2016

2015

Rs 000

Rs 000

Rs 000

Rs 000

PROFIT FOR THE YEAR

14,143,406

10,448,786

15,664,962

11,095,844

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF TAX

Other comprehensive income to be reclassified to profit or

    loss in subsequent periods

Available-for-sale financial assets:

  Net change in fair value during the year

(3,158,637)

(2,450,679)

(3,312,113)

(2,538,159)

  Transfer to life policy holder reserve fund

-

-

134,781

97,098

  Net amount transferred to profit or loss

    (available-for-sale financial assets)

-

-

14,466

(19,242)

Deferred tax effect on above

404,328

150,890

406,153

152,176

Share of other comprehensive income of

    equity accounted joint venture

-

-

(21,154)

17,041

Net other comprehensive income to be reclassified to profit or

loss in subsequent periods

(2,754,309)

(2,299,789)

(2,777,867)

(2,291,086)

Other comprehensive income not to be reclassified to profit or

  loss in subsequent periods

Re-measurement gains/(losses) on defined benefit plans

361,720

(897,969)

377,525

(909,543)

Revaluation of freehold land and buildings

2,273,397

2,095,076

5,748,917

5,597,137

Deferred tax effect on above

(54,489)

(104,040)

(157,789)

(104,040)

Deferred tax effect on realisation of revaluation surplus

1,214

-

1,214

-

Net other comprehensive income not to be reclassified to profit or

loss in subsequent periods

2,581,842

1,093,067

5,969,867

4,583,554

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF TAX

(172,467)

(1,206,722)

3,192,000

2,292,468

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

13,970,939

9,242,064

18,856,962

13,388,312

Total comprehensive income attributable to:

Equity holders of the Bank

13,970,939

9,242,064

17,865,820

12,855,605

Non-controlling interests

-

-

991,142

532,707

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

13,970,939

9,242,064

18,856,962

13,388,312

The notes to the financial statements from pages 206 to 327 form an integral part of these financial statements.

Statement of Financial Position

Bank

Group

As at 31st December

2016

2015

2016

2015

Note

Rs 000

Rs 000

Rs 000

Rs 000

ASSETS

Cash and cash equivalents

24

17,511,446

14,909,598

18,668,703

15,419,654

Balances with Central Bank of Sri Lanka

25

33,777,614

20,096,090

33,777,614

20,096,090

Placements with banks

26

753,050

26,827

2,198,446

1,174,326

Reverse repurchase agreements

27

4,303,460

4,869,219

5,756,794

7,782,374

Derivative financial instruments

28

289,989

1,302,872

289,989

1,302,872

Financial investments - fair value through profit or loss

29

544,915

593,390

716,009

1,948,772

Non-current assets held for sale

30

-

20,151

-

20,151

Loans and receivables to customers

31

584,412,727

498,341,628

597,467,460

507,244,329

Financial investments - loans and receivables

32

99,260,698

84,206,702

102,063,229

87,087,205

Financial investments - available-for-sale

33

89,915,153

78,046,505

95,797,142

79,718,231

Financial investments - held to maturity

34

-

-

465,081

1,257,433

Investment in joint venture

35

755,000

655,000

1,450,806

1,253,370

Investment in subsidiaries

36

3,017,285

3,017,285

-

-

Investment properties

37

403,959

386,643

1,054,300

1,041,797

Property, plant and equipment

38

13,945,002

11,473,569

29,844,234

23,908,688

Intangible assets and goodwill

39

789,648

659,309

1,180,269

1,001,230

Other assets

40

9,193,879

6,602,922

10,720,506

7,328,053

Total assets

858,873,825

725,207,710

901,450,582

757,584,575

LIABILITIES

Due to banks

41

69,928,789

58,232,034

69,964,380

58,283,838

Derivative financial instruments

28

665,890

304,485

665,890

304,485

Securities sold under repurchase agreements

42

13,458,127

16,630,201

13,458,127

16,630,201

Due to customers

43

623,494,969

527,126,181

635,371,097

536,132,789

Dividends payable

44

1,007,075

764,771

1,015,463

764,771

Other borrowings

45

27,130,358

26,833,109

27,130,358

26,833,109

Debt securities issued

46

4,653,057

4,490,742

5,115,801

4,913,751

Current tax liabilities

48

6,223,943

4,542,977

6,425,379

4,762,707

Deferred tax liabilities

49

231,364

378,820

824,778

579,102

Insurance provision - life

50

-

-

8,747,856

7,007,081

Insurance provision - general

51

-

-

1,921,567

1,546,266

Other provisions

3,158,444

2,538,111

3,407,050

2,746,294

Other liabilities

52

5,751,107

6,250,856

7,190,028

7,250,893

Subordinated term debts

47

26,153,476

12,064,370

25,901,110

12,085,598

Total liabilities

781,856,599

660,156,657

807,138,884

679,840,885

EQUITY

Stated capital

54

15,340,158

13,826,873

15,340,158

13,826,873

Statutory reserve

55

4,560,000

3,760,000

4,560,000

3,760,000

Other reserves

57

47,592,832

42,193,332

58,569,401

50,027,681

Retained earnings

56

9,524,236

5,270,848

12,821,116

7,949,848

Total equity attributable to equity holders of the Bank

77,017,226

65,051,053

91,290,675

75,564,402

Non-controlling interests

58

-

-

3,021,023

2,179,288

Total equity

77,017,226

65,051,053

94,311,698

77,743,690

Total liabilities and equity

858,873,825

725,207,710

901,450,582

757,584,575

Contingent liabilities and commitments

59

502,372,909

343,386,012

502,372,909

343,386,012

Net assets value per share (Rs)

63

186.11

160.29

220.60

186.20

The notes to the financial statements from pages 206 to 327 form an integral part of these financial statements.

I certify that these financial statements are in compliance with the requirements of Companies Act No 7 of 2007.

Anusha Gallage

Assistant General Manager - Finance
For and on behalf of the Board

Jonathan Alles

Managing Director /
Chief Executive Officer

23rd February 2017
Colombo

Rienzie Arseculeratne

Chairman

K A L Thushari Ranaweera (Mrs)

Deputy General Manager (Legal) /
Company Secretary