Supplementary Information

Decade at a Glance

Bank

Year ended December 31,
Rs. Mn.
2005 2006 2007 2008 2009 2010
Operating Results
Income 16,100 24,470 35,223 44,115 43,741 41,522
Interest income 13,034 19,532 30,503 37,188 35,925 34,740
Interest expenses (7,226) (11,955) (18,951) (24,336) (23,515) (18,328)
Foreign exchange profit 587 1,439 1,545 2,633 2,962 1,741
Commission and other income 2,479 3,499 3,175 4,294 4,854 5,041
Operating expenses and provisions (5,232) (8,301) (9,567) (12,259) (13,035) (13,876)
Profit before income tax 3,642 4,214 6,705 7,520 7,191 9,318
Income tax on profit (1,278) (2,201) (2,601) (3,252) (2,887) (3,794)
Net profit for the year 2,364 2,013 4,104 4,268 4,304 5,524
As at December 31,
Assets
Cash and short-term funds 18,663 13,739 16,208 24,115 24,057 10,557
Balances with Central Banks 9,045 12,574 11,576 10,322 11,795 12,189
Government Treasury Bills, Bonds and Other Securities 21,218 32,065 49,863 51,633 96,671 114,541
Commercial paper 408 423
Securities purchased under resale agreements 808 4,593 3,804 3,400 5,203 68
Dealing securities 182 145 207 58 81 283
Investments Held-for-sale 218 205
Investments Held-to-maturity 3,091 1,394 1,756 1,197 1,025 2,366
Bills of exchange 2,790 3,204 3,195 3,059 2,847 5,291
Lease receivable 7,088 9,482 10,945 9,484 7,794 11,019
Loans and advances 108,884 137,846 160,184 167,858 161,329 200,729
172,177 215,683 257,943 271,126 310,802 357,043
Investments in subsidiary companies 434 434 434 434 279 354
Investments in associate companies 107 44 44 44 44 44
Property, plant & equipment and intangible assets 3,182 3,477 3,768 4,098 4,382 6,428
Other assets 4,177 4,336 5,751 5,512 6,808 6,191
Total assets 180,077 223,974 267,940 281,214 322,315 370,060
Liabilities
Deposits from customers 127,601 157,496 183,110 199,881 234,745 259,779
Dividends payable 230 113 113
Borrowings 13,387 18,944 18,752 13,620 11,639 14,371
Securities sold under repurchase agreements 11,389 14,330 23,342 25,075 29,905 45,774
Other liabilities 6,331 9,122 10,308 10,646 12,888 12,259
Tax payable 818 1,446 1,698 1,665 1,203 2,448
Debentures 4,553 6,680 6,680 4,436 3,436 2,127
164,309 208,131 244,003 255,323 293,816 336,758

Bank

Year ended December 31,
Rs. Mn.
2011 2012 2013 2014 CAGR %
Operating Results
Income 45,860 63,395 73,736 74,442 17.52
Interest income 38,356 52,685 62,764 61,832
Interest expenses (19,650) (29,830) (36,879) (34,610)
Foreign exchange profit 2,322 4,687 1,996 1,481
Commission and other income 5,182 6,023 8,976 11,129
Operating expenses and provisions (15,313) (19,270) (22,347) (24,095)
Profit before income tax 10,897 14,295 14,510 15,737 13.03
Income tax on profit (3,014) (4,197) (4,065) (4,556)
Net profit for the year 7,883 10,098 10,445 11,181 12.36
As at December 31,
Assets
Cash and cash equivalents 12,911 19,733 14,262 20,592
Balances with Central Banks 17,343 18,168 18,432 19,634
Placements with banks 11,674 16,163 4,132 14,508
Derivative financial assets 40 1,351 838 460
Other financial assets - Held-for-trading 6,418 6,041 6,379 6,327
Loans and receivables to banks 580 629 546 551
13.25
 
Loans and receivables to other customers 314,486 372,915 410,951 497,066
Financial investments - Available-for-sale 61,415 57,963 131,757 214,208
Financial investments - Held-to-maturity
424,867 492,963 587,297 773,346
Investments in subsidiaries 315 303 289 1,211
Investments in associates 44 44 44 44
Property, plant & equipment 7,907 8,221 8,387 9,953
Intangible assets 467 497 468 439
Leasehold property 78 77 76 75
Deferred tax assets 360 449
Other assets 7,291 9,189 9,426 10,542
Total assets 441,329 511,743 605,987 795,610 21.71
Liabilities
Due to Banks 11,574 4,894 14,194 25,261
Derivative financial liabilities 435 84 1,412 1,193
Other financial liabilities Held-for-trading
Due to other customers/Deposits from customers 323,755 390,612 451,153 529,361 17.81
Other borrowings 49,603 47,583 54,173 136,201
Current tax liabilities 1,305 2,802 1,759 1,998
Deferred tax liabilities 1,594 1,698 1,563 2,574
Other provisions 1 2 2 2
Other liabilities 8,162 10,363 9,827 17,444
Due to subsidiaries 30 22 16 19
Subordinated liabilities 1,106 1,106 10,944 11,045
Total liabilities 397,565 459,166 545,043 725,098

CAGR - Compounded Annual Growth Rate

Bank

Year ended December 31,
Rs. Mn.
2005 2006 2007 2008 2009 2010
Shareholders’ Funds
Share capital 3,327 2,428 10,515 10,548 10,608 10,811
Statutory Reserve Fund 1,421 1,429 1,634 1,896 2,164 2,472
Reserves 11,020 11,986 11,788 13,447 15,727 20,019
Total Liabilities and Shareholders’ Funds 180,077 223,974 267,940 281,214 322,315 370,060
Commitments and contingencies 47,154 56,418 116,212 115,809 146,072 196,617
Ratios
Return on average shareholders’ funds (%) 15.93 12.73 20.63 17.13 15.83 17.87
Income growth (%) 31.00 51.99 43.95 25.25 (0.85) (5.07)
Return on average assets (%) 1.48 1.00 1.67 1.55 1.43 1.60
Rate of dividend (%) 45.00 50.00
Dividend per share (Rs.) 7.00 7.00 7.00 7.00
Ordinary share dividend cover (times) 3.34 2.54 2.29 2.42 2.46 2.09
Gross dividends to ordinary shareholders (Rs. Mn.) 639.36 714.00 1,743.13 1,745.81 1,751.47 2,642.25
Advances to deposits and refinance (%) 90.64 92.49 91.75 87.12 70.88 80.97
Property, Plant & Equipment to shareholders’ funds (%) 20.75 21.33 15.74 15.83 15.38 19.30
Total assets to shareholders’ funds (times) 11.42 14.14 11.19 10.86 11.31 11.11
Capital funds to liabilities including contingent liabilities (%) 7.46 6.05 7.87 6.98 6.48 6.26
Cost/Income Ratio (%) 54.28 61.10 47.87 50.46 56.86 54.69
Liquid assets to liabilities (%) 24.51 22.64 24.24 24.83 38.80 29.74
(As specified in the Banking Act No. 30 of 1988)
Group Capital Adequacy (%) Tier I 9.68 7.62 10.60 10.55 11.92 10.86
Tier I & II 12.08 11.58 13.71 13.13 13.93 12.26
Share Information
Market value of a share (Rs.) 135.50 190.00 147.00 67.00 189.50 259.90
Earnings per share (Rs.) 3 3 5 6 6 7
Price earnings ratio (times) 9 15 9 4 11 18
Net assets value per share (Rs.) 22 24 30 34 38 44
Earnings yield (%) 11 5 11 25 9 6
Dividend payout ratio (%) - Cash 30 39 44 41 41 34
Total dividend payout ratio (%) 48
Other Information
Number of employees 3,168 3,415 3,745 4,041 4,071 4,321
Number of delivery points - Sri Lanka 134 150 163 170 172 187
Number of delivery points - Bangladesh 5 7 9 11 15 17
Number of automated teller machines 223 278 301 346 368 414

Bank

Year ended December 31,
Rs. Mn.
2011 2012 2013 2014 CAGR %
Equity
Stated capital 16,474 18,009 19,587 21,458
Statutory reserves 2,890 3,433 4,035 4,327
Retained earnings 2,547 4,178 4,233 4,258
Other reserves 21,853 26,957 33,089 40,469
Total Liabilities and Equity 441,329 511,743 605,987 795,610 21.71
Commitments and contingencies 234,551 279,593 295,452 352,453
Ratios
Return on average shareholders’ funds (%) 20.28 20.96 18.40 17.01
Income growth (%) 10.45 38.24 16.31 0.96
Return on average assets (%) 1.94 2.12 1.87 1.60
Dividend per share (Rs.) 6.00 6.50 6.50 6.50
Ordinary share dividend cover (times) 1.61 1.86 1.89 1.99
Gross dividends to ordinary shareholders (Rs. Mn.) 4,904.70 5,421.42 5,522.47 5,627.87
Advances to deposits and refinance (%) 83.30 82.01 77.48 75.89
Property, plant & equipment to equity (%) 19.31 16.73 14.65 14.85
Total assets to equity (times) 9.92 9.73 9.94 11.28
Capital funds to liabilities including contingent liabilities (%) 6.92 7.12 7.25 6.54
Cost/income ratio (%) 50.70 47.02 45.59 47.13
Liquid assets to liabilities (%) 26.35 25.79 34.05 33.11
(As specified in the Banking Act No. 30 of 1988)
Group Capital Adequacy (%) Tier I 12.11 12.63 13.30 13.07
Tier I & II 13.01 13.84 16.93 16.22
Share Information
Market value of a share (Rs.) 100.00 103.00 120.40 171.00
Earnings per share (Rs.) 9 12 12 13
Price earnings ratio (times) 11 9 10 13
Net assets value per share (Rs.) 54 63 72 81
Earnings yield (%) 9 12 10 8
Dividend payout ratio (%) - Cash 42 37 37 35
Total dividend payout ratio (%) 62 54 53 50
Other Information
Number of employees 4,524 4,602 4,730 4,852
Number of delivery points - Sri Lanka 213 227 235 239 10.62
 
Number of delivery points - Bangladesh 17 17 18 18
Number of automated teller machines 514 572 604 625 6.73

CAGR - Compounded Annual Growth Rate