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Commercial Bank: Interim Financial Statements - 30 June 2019

IM Insights
By IM Insights
6 years ago
Commercial Bank: Interim Financial Statements - 30 June 2019

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  1. INTERIM FINANCIAL STATEMENTS For the six months ended June 30 , 2019
  2. INCOME STATEMENT - GROUP 2 For the six months ended 30 .06.2019 30.06.2018 Change For the quarter ended 30.06.2019 (Restated) Rs.'000 30.06.2018 Change (Restated) Rs.'000 % Rs.'000 Rs.'000 % Gross income 73,586,944 64,943,544 13.31 38,085,469 33,486,196 13.73 Interest income 64,622,447 57,237,490 12.90 32,645,243 29,155,404 11.97 Less : Interest expense 40,476,911 34,870,543 16.08 20,619,527 17,762,720 16.08 Net interest income 24,145,536 22,366,947 7.95 12,025,716 11,392,684 5.56 5,830,930 5,880,613 (0.84) 2,857,199 2,980,202 (4.13) 992,480 888,563 466,589 434,539 Net fee and commission income 4,838,450 4,992,050 2,390,610 2,545,663 Net gains/(losses) from trading 1,103,073 (1,155,989) Fee and commission income Less: Fee and commission expense 11.69 (3.08) (6.09) 195.42 362,225 145.20 247,190 113,916 (40.95) 1,973,612 2,636,213 (25.13) 29,184,438 10.05 16,999,353 15,288,937 11.19 5,526,814 3,366,526 64.17 3,630,501 2,240,276 62.06 Net operating income 26,590,739 25,817,912 2.99 13,368,852 13,048,661 2.45 Less: Expenses 12,641,883 11,390,931 10.98 6,224,250 5,792,690 7.45 7,055,080 6,403,892 10.17 3,444,105 3,228,184 6.69 875,995 766,968 14.22 444,836 392,499 13.33 4,710,808 4,220,071 11.63 2,335,309 2,172,007 7.52 13,948,856 14,426,981 (3.31) 7,144,602 7,255,971 (1.53) Less: Taxes on financial services 3,604,296 2,583,357 39.52 1,817,336 1,305,247 39.23 Value Added Tax (VAT) 2,149,328 2,275,974 (5.56) 1,081,231 1,148,230 (5.83) 286,577 307,383 (6.77) 144,164 157,017 (8.19) - 591,941 Net gains/(losses) from derecognition of financial assets Net other operating income Total operating income Less : Impairment charges and other losses Personnel expenses Depreciation and amortisation Other expenses Operating profit before taxes on financial services Nation Building Tax (NBT) Debt Repayment Levy (DRL) Operating profit after taxes on financial services Add: Share of profits/(losses) of associates, net of tax 355,693 145,064 1,674,801 2,836,366 32,117,553 1,168,391 10,344,560 - 11,843,624 (12.66) 13.36 5,327,266 (1,399,539) 7.38 - 5,950,724 125.88 116.99 - (10.48) 5,872 5,180 4,529 3,564 Profit before income tax 10,350,432 11,848,804 (12.65) 5,331,795 5,954,288 (10.45) 27.08 Less : Income tax expense 3,677,831 3,823,656 (3.81) 1,850,007 2,067,671 (10.53) Profit for the period 6,672,601 8,025,148 (16.85) 3,481,788 3,886,617 (10.42) 6,580,562 7,978,974 (17.53) 3,450,645 3,865,242 (10.73) 92,039 46,174 31,143 21,375 6,672,601 8,025,148 (16.85) 3,481,788 3,886,617 (10.42) Basic earnings per ordinary share (Rs.) 6.40 7.90 (18.99) 3.36 3.83 (12.27) Diluted earnings per ordinary share (Rs.) 6.40 7.90 (18.99) 3.36 3.83 (12.27) Profit attributable to: Equity holders of the Bank Non-controlling interest Profit for the period 99.33 45.70 Earnings per share (EPS)
  3. STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - GROUP 3 For the six months ended 30 .06.2019 30.06.2018 Change For the quarter ended 30.06.2019 (Restated) Rs.'000 Profit for the Period 6,672,601 Change (Restated) Rs.'000 8,025,148 30.06.2018 % (16.85) Rs.'000 3,481,788 Rs.'000 3,886,617 % (10.42) Other comprehensive income, net of tax Items that will never be reclassified to profit or loss Net change in revaluation surplus - (10,010) - - (10,010) - Changes in revaluation surplus/(deficit) - - - - - - Less: Deferred tax charge/(reversal) on revaluation surplus - (10,010) - - (10,010) - (28,113) (10,870) (158.63) (11,283) (11,663) 3.26 (28,113) (10,870) (158.63) (11,283) (11,663) 3.26 - - - - - - (356.05) 80,445 Net change in fair value on investments in equity Change in fair value on investments in equity at fair value through other comprehensive income Less: Deferred tax charge/(reversal) on change in fair value on investments in equity Items that are or may be reclassified to profit or loss Net gains/(losses) arising from translating the Financial Statements of foreign operations Net gains/(losses) on investment in financial assets at fair value through other comprehensive income Fair value gains/(losses) that arose during the period, net of tax Fair value gains/(losses) realised to the Income Statement on disposal, net of tax Fair value gains/(losses) recycled to the Income Statement on reclassification, net of tax Fair value gains/(losses) recycled to the Income Statement as impairment, net of tax Cash flow hedges - effective portion of changes in fair value, net of tax Share of other comprehensive income/(expense) of associates, net of tax (891,557) 348,197 3,478,142 118,341 2,839.08 1,434,293 3,597,731 207,846 1,630.96 1,494,074 (289,292) - (200,376) - (44.37) - (210,178) - 192,518 (330) (58.21) 434,734.24 165,538 802.56 (171,803) (22.34) - - 169,703 110,871 53.06 150,397 5,935 2,434.07 (58,059) 51,166 (213.47) (36,881) 17,757 (307.70) (3,032) (5,496) 44.83 (1,030) (3,985) 74.15 Other comprehensive income/(expense) for the period, net of taxes 2,497,381 491,328 408.29 1,465,544 184,287 695.25 Total comprehensive income for the period 9,169,982 8,516,476 7.67 4,947,332 4,070,904 21.53 9,117,095 8,458,563 7.79 4,908,975 4,043,243 21.41 52,887 57,913 38,357 27,661 38.67 9,169,982 8,516,476 4,947,332 4,070,904 21.53 Attributable to: Equity holders of the Bank Non-controlling interest Total comprehensive income for the period (8.68) 7.67
  4. INCOME STATEMENT - BANK 4 For the six months ended 30 .06.2019 30.06.2018 (Audited) (Audited) For the quarter ended Change 30.06.2019 % Rs.'000 (Restated) Rs.'000 30.06.2018 Change (Restated) Rs.'000 Rs.'000 % Gross income 72,604,737 64,154,632 13.17 37,656,872 33,052,700 13.93 Interest income 63,908,860 56,703,255 12.71 32,280,313 28,889,940 11.74 Less : Interest expense 40,269,710 34,657,661 16.19 20,522,234 17,657,668 16.22 Net interest income 23,639,150 22,045,594 7.23 11,758,079 11,232,272 4.68 5,662,221 5,668,322 (0.11) 2,802,945 2,871,878 (2.40) 988,901 888,563 464,968 434,539 Fee and commission income Less: Fee and commission expense Net fee and commission income 4,673,320 4,779,759 Net gains/(losses) from trading 1,103,073 (1,155,989) Net gains/(losses) from derecognition of financial assets 11.29 (2.23) 195.42 362,225 2,437,339 (1,399,539) (4.08) 125.88 355,693 145,064 247,190 113,916 1,574,890 2,793,980 (43.63) 1,964,199 2,576,505 (23.76) 31,346,126 28,608,408 9.57 16,669,670 14,960,493 11.42 5,367,411 2,973,607 80.50 3,515,041 2,005,887 75.24 Net operating income 25,978,715 25,634,801 1.34 13,154,629 12,954,606 1.54 Less: Expenses 12,355,532 11,163,687 10.68 6,072,949 5,661,683 7.26 6,928,605 6,310,910 9.79 3,370,615 3,172,389 6.25 Net other operating income Total operating income Less :Impairment charges for loans and other losses Personnel expenses Depreciation and amortisation Other expenses 145.20 2,337,977 7.00 116.99 797,303 705,020 13.09 405,207 360,119 12.52 4,629,624 4,147,757 11.62 2,297,127 2,129,175 7.89 13,623,183 14,471,114 (5.86) 7,081,680 7,292,923 (2.90) Less: Taxes on financial services 3,576,875 2,583,357 38.46 1,809,746 1,305,247 38.65 Value Added Tax (VAT) 2,129,937 2,275,974 (6.42) 1,077,657 1,148,230 (6.15) 283,992 307,383 (7.61) 143,688 157,017 (8.49) - 588,401 Operating profit before taxes on financial services Nation Building Tax (NBT) Debt Repayment Levy (DRL) 1,162,946 - - - Profit before income tax 10,046,308 11,887,757 (15.49) 5,271,934 5,987,676 (11.95) Less : Income tax expense 3,579,925 3,821,725 (6.33) 1,828,428 2,075,536 (11.91) Profit for the period 6,466,383 8,066,032 (19.83) 3,443,506 3,912,140 (11.98) Basic earnings per ordinary share (Rs.) 6.29 7.99 (21.28) 3.35 3.87 (13.44) Diluted earnings per ordinary share (Rs.) 6.29 7.98 (21.18) 3.35 3.87 (13.44) Earnings per share (EPS)
  5. STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - BANK 5 For the six months ended 30 .06.2019 30.06.2018 (Audited) (Audited) Change For the quarter ended 30.06.2019 (Restated) Rs.'000 Profit for the period 6,466,383 Change (Restated) Rs.'000 8,066,032 30.06.2018 % (19.83) Rs.'000 3,443,506 Rs.'000 3,912,140 % (11.98) Other comprehensive income, net of tax Items that will never be reclassified to profit or loss Net change in fair value on investments in equity Equity Securities Fair value gains/(losses) arose during the period Fair value gains/(losses) realised and recycled to the Income Statement on disposal (28,113) (10,870) (158.63) (11,283) (11,663) 3.26 (28,113) (10,870) (158.63) (11,283) (11,663) 3.26 - - - - - - (347.32) 62,137 Items that are or may be reclassified to profit or loss Net gains/(losses) arising from translating the Financial Statements of foreign operations Net gains/(losses) on investment in financial assets at fair value through other comprehensive income Fair value gains/(losses) that arose during the period, net of tax Fair value gains/(losses) realised to the Income Statement on disposal, net of tax Fair value gains/(losses) recycled to the Income Statement on reclassification, net of tax Fair value gains/(losses) recycled to the Income Statement as impairment, net of tax Cash flow hedges - effective portion of changes in fair value, net of tax (798,546) 322,884 3,478,142 118,341 2,839.08 1,434,293 3,597,731 207,846 1,630.96 1,494,074 (289,292) - (200,376) - (44.37) - (210,178) - 181,752 (330) (65.81) 434,734.24 165,538 802.56 (171,803) (22.34) - - 169,703 110,871 53.06 150,397 5,935 2,434.07 (58,059) 51,166 (213.47) (36,881) 17,757 (307.70) Other comprehensive income/(expense) for the period, net of taxes 2,593,424 481,521 438.59 1,448,266 187,516 672.34 Total comprehensive income for the period 9,059,807 8,547,553 5.99 4,891,772 4,099,656 19.32
  6. STATEMENT OF FINANCIAL POSITION 6 Group As at 30 .06.2019 31.12.2018 Change ( Audited ) Rs.'000 Rs.'000 % Bank 30.06.2019 31.12.2018 ( Audited ) ( Audited ) Rs.'000 Rs.'000 Change % ASSETS Cash and cash equivalents 53,188,327 44,355,962 19.91 44,719,754 39,534,476 13.12 Balances with Central Banks 45,126,978 55,406,535 (18.55) 43,450,379 54,384,590 (20.11) Placements with banks 24,883,478 19,898,515 25.05 24,386,003 19,898,515 22.55 Securities purchased under resale agreements 18,497,618 9,513,512 94.44 18,497,618 9,513,512 94.44 3,253,835 7,909,962 (58.86) 3,253,835 7,909,962 (58.86) 12,252,492 5,520,167 121.96 12,252,492 5,520,167 121.96 736,299 763,074 (3.51) 736,299 763,074 854,238,500 867,611,976 (1.54) 847,364,012 861,100,315 (1.60) 98,761,011 89,274,413 10.63 93,363,847 83,855,436 11.34 208,698,513 176,760,611 18.07 208,459,018 176,506,729 18.10 4,303,814 4,263,631 0.94 44,331 44,331 15,185,135 15,301,246 Derivative financial assets Financial assets recognised through profit or loss – measured at fair value Financial assets at amortised cost – Loans and advances to banks Financial assets at amortised cost – Loans and advances to other customers Financial assets at amortised cost – Debt and other financial instruments Financial assets measured at fair value through other comprehensive income Investments in subsidiaries Investments in associates Property, plant & equipment Intangible assets - - 105,388 105,320 16,882,420 17,015,236 0.06 (0.78) (3.51) (0.76) 1,505,196 1,433,931 4.97 999,066 906,112 10.26 Leasehold property 102,343 103,064 (0.70) 71,186 71,652 (0.65) Deferred tax assets 180,225 188,487 (4.38) - - Other assets 27,674,083 24,051,472 15.06 27,545,229 23,911,122 15.20 Total Assets 1,366,086,706 1,319,912,237 3.50 1,344,632,018 1,303,484,870 3.16 62,009,934 52,362,052 18.43 59,867,706 50,101,081 19.49 2,411,810 8,021,783 (69.93) 2,411,810 8,021,783 (69.93) (17.02) - LIABILITIES Due to banks Derivative financial liabilities Securities sold under repurchase agreements 40,649,376 48,951,394 (16.96) Financial liabilities at amortised cost – due to depositors 1,037,150,823 994,370,875 4.30 Financial liabilities at amortised cost – other borrowings 24,188,447 25,361,912 Current tax liabilities 7,480,547 Deferred tax liabilities 1,031,229 27,250,407 Other liabilities Due to subsidiaries Subordinated liabilities Total Liabilities - 40,747,726 49,104,462 1,020,918,723 983,037,314 3.85 (4.63) 24,188,447 25,361,912 (4.63) 6,735,997 11.05 7,232,866 6,566,358 10.15 971,424 6.16 702,188 646,248 8.66 24,547,513 11.01 26,895,743 24,206,351 11.11 23.41 - 37,494,509 37,992,457 1,239,667,082 1,199,315,407 (1.31) 3.36 50,544 40,955 37,494,509 37,992,457 1,220,510,262 1,185,078,921 (1.31) 2.99
  7. STATEMENT OF FINANCIAL POSITION 7 Group As at 30 .06.2019 31.12.2018 Change ( Audited ) Rs.'000 Rs.'000 % Bank 30.06.2019 31.12.2018 ( Audited ) ( Audited ) Rs.'000 Rs.'000 Change % EQUITY Stated capital 40,916,957 39,147,882 4.52 40,916,957 39,147,882 Statutory reserves 7,445,163 7,444,178 0.01 7,354,143 7,354,143 - Retained earnings 6,416,457 4,949,955 29.63 6,416,384 5,063,076 26.73 70,392,367 67,855,834 3.74 69,434,272 66,840,848 3.88 125,170,944 119,397,849 4.84 124,121,756 118,405,949 4.83 Other reserves Total equity attributable to equity holders of the Group/Bank Non-controlling Interest Total Equity Total Liabilities and Equity Contingent Liabilities and Commitments Net Assets Value per Ordinary Share (Rs.) 1,248,680 1,198,981 4.15 126,419,624 120,596,830 4.83 124,121,756 118,405,949 4.83 1,366,086,706 1,319,912,237 3.50 1,344,632,018 1,303,484,870 3.16 585,207,963 658,860,264 584,832,875 658,721,983 121.82 118.13 120.80 117.15 5,111 5,027 285 285 (11.18) 3.12 - - 4.52 - (11.22) 3.12 Memorandum Information Number of Employees Number of Customer Service Centers CERTIFICATION : These Financial Statements have been prepared in compliance with requirements of the Companies Act No. 07 of 2007. (Sgd.) K.D.N. Buddhipala Chief Financial Officer We, the undersigned, being the Chairman and the Managing Director/Chief Executive Officer of the Commercial Bank of Ceylon PLC, certify jointly that: (a) the above financial statements have been prepared in compliance with the formats and definitions prescribed by the Central Bank of Sri Lanka, (b) the information contained in these financial statements have been extracted from the unaudited Financial Statements of the Group & the Bank, unless indicated as audited. (Sgd.) K.G.D.D. Dheerasinghe (Sgd.) S. Renganathan Chairman August 13, 2019 Colombo Managing Director/Chief Executive Officer
  8. STATEMENT OF CHANGES IN EQUITY - GROUP 8 Other Reserves Stated Capital Rs .'000 Balance as at 31.12.2017 - Audited 37,143,541 Statutory Reserve Retained Earnings Fund Rs.'000 6,492,552 Rs.'000 5,086,609 Revaluation Reserve Rs.'000 7,834,003 Available-for-Sale Fair Value Reserve Reserve Rs.'000 (1,707,486) Rs.'000 - Foreign Currency Translation Reserve Hedging Reserve Employee Share Option Reserve General Reserve Shareholders' Funds Non-Controlling Interest Total Equity Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 348,973 (3,212) 529,817 52,270,003 Impact of adoption of SLFRS 09 107,994,800 Recognition of SLFRS 9 ECLs including those measured at FVOCI (5,749,369) Deferred tax on transitional adjustments 1,855,263 Transfer of AFS reserve build o/a reclassification of AFS portfolio to HTM portfolio, net of tax (1,587,069) Impact of reclassifying financial investment from AFS to FVTPL 1,587,069 340,182 (340,182) Remeasurement impact of reclassifying financial investment from L&R to FVOCI Transfer of AFS reserve to fair value reserve 460,599 37,143,541 6,492,552 (54,384) 7,834,003 - 108,866,706 - 194,256 (5,555,113) (5,555,113) (47,775) 1,807,488 1,807,488 - - - - - (11,294) (11,294) (11,294) (460,599) - Balance as at 01.01.2018 - Audited 871,906 - (325,412) 348,973 (3,212) 529,817 52,270,003 - - - 104,235,881 871,906 105,107,787 8,025,148 Total comprehensive income for the six months ended 30.06.2018 Profit for the six months ended 30.06.2018 - - Other comprehensive income for the six months ended 30.06.2018 - - - - Total comprehensive income for the six months ended 30.06.2018 7,978,974 (5,496) 7,973,478 - - - - - 7,978,974 46,174 (10,010) - 107,471 336,458 - 51,166 - - 479,589 11,739 491,328 (10,010) - 107,471 336,458 51,166 - - 8,458,563 57,913 8,516,476 199,874 Transactions with owners, recognized directly in equity, contributions by and distributions to owners Issue of Ordinary Shares under Employee Share Option Plans [ ESOPs ] Transfer o/a Share-based Payment transactions 199,874 - - - - - - - - 5,875 - - - - - - (5,875) - - - - - - - - - - - 199,874 - Dividends to equity holders Second interim dividend for 2017 Final dividend for 2017 satisfied in the form of issue and allotment of new shares Unclaimed dividend absorbed/(dividend paid) in respect of previous years Share-based Payment transactions 1,794,844 Transfers during the period Total transactions with equity holders Balance as at 30.06.2018 (1,994,271) - (2,989,996) - 226 (226) 2,000,593 226 (4,983,286) 39,144,134 6,492,778 2,935,808 (2,531) (199,427) 1,207 - (2,989,996) (199,427) 1,207 - - - - - - 45,470 - - - 39,595 - 47,954 569,412 45,470 - 7,823,993 - (217,941) 685,431 52,270,003 (2,942,872) 109,751,572 (2,992,527) 1,207 (2,531) 45,470 (2,945,403) 927,288 110,678,860 9,837,683 Total comprehensive income for the six months ended 31.12.2018 Profit for the six months ended 31.12.2018 - - 9,755,732 - - - - - 9,755,732 81,951 Other comprehensive income for the six months ended 31.12.2018 - - 104,742 - - (1,168,414) 2,471,621 (23,935) - - 1,384,014 183,946 1,567,960 - - 9,860,474 - - (1,168,414) 2,471,621 (23,935) - - 11,139,746 265,897 11,405,643 3,209 - - - - - - - - 3,209 - 3,209 539 - - - - - - - - - - - - - - - - Total comprehensive income for the six months ended 31.12.2018 - Transactions with owners, recognized directly in equity, contributions by and distributions to owners Issue of Ordinary Shares under Employee Share Option Plans [ ESOPs ] Transfer o/a Share-based Payment transactions (539) Dividends to equity holders First interim dividend for 2018 Unclaimed dividend absorbed/(dividend paid) in respect of previous years - - Profit due to change in ownership - - Movement due to change in ownership - - Transfers during the period Balance as at 31.12.2018 - Audited - - 397 Share-based Payment transactions Total transactions with equity holders (1,516,084) - (1,516,084) 397 37 - - - - 23,111 - 3,344 - - - - - - (2,584) (4,862) - - - - - - - - - 951,400 (6,331,400) 3,748 951,400 (7,846,327) 39,147,882 7,444,178 4,949,955 (4,862) 7,819,131 - (1,386,355) 3,157,052 5,380,000 - 22,572 5,380,000 24,019 591,984 57,650,003 23,111 (1,687) (1,517,771) 434 - 23,111 3,344 - 3,344 (7,446) 7,446 - (1,493,469) 119,397,849 5,796 1,198,981 (1,487,673) 120,596,830 Impact of adoption of SLFRS 16 Reversal of deferred tax asset created on liability o/a straight lining of lease rentals Balance as at 01.01.2019 (57,627) 39,147,882 7,444,178 4,892,328 (57,627) 7,819,131 - (1,386,355) 3,157,052 24,019 591,984 57,650,003 119,340,222 - 1,198,981 (57,627) 120,539,203
  9. Other Reserves Stated Capital Statutory Reserve Retained Earnings Fund Rs .'000 Rs.'000 Profit for the six months ended 30.06.2019 - - Other comprehensive income for the six months ended 30.06.2019 - - - - 30,128 - - - Rs.'000 Revaluation Reserve Available-for-Sale Fair Value Reserve Reserve Rs.'000 Foreign Currency Translation Reserve Hedging Reserve Employee Share Option Reserve General Reserve Shareholders' Funds Non-Controlling Interest Total Equity Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 - - - - - 6,580,562 92,039 - - 3,446,997 (852,405) (58,059) - - 2,536,533 (39,152) 2,497,381 - - 3,446,997 (852,405) (58,059) - - 9,117,095 52,887 9,169,982 - - - - - - 30,128 (3,032,869) - - - - - - (3,032,869) - (3,032,869) (2,022,032) - - - - - - (283,085) - (283,085) - - - - - - - - - - - - - - - Total comprehensive income for the six months ended 30.06.2019 Total comprehensive income for the six months ended 30.06.2019 6,580,562 6,580,562 - 6,672,601 Transactions with owners, recognized directly in equity, contributions by and distributions to owners Issue of Ordinary Shares under Employee Share Option Plans [ ESOPs ] - - 30,128 Dividends to equity holders Second interim dividend for 2018 Final dividend for 2018 satisfied in the form of issue and allotment of new shares 1,738,947 Final cash dividend for 2018 - - Unclaimed dividend absorbed/(dividend paid) in respect of previous years - - (547) - - 985 (985) - 1,769,075 985 (5,056,433) - 40,916,957 7,445,163 Transfers during the period Total transactions with equity holders Balance as at 30.06.2019 - 6,416,457 7,819,131 - 2,060,642 2,304,647 (34,040) 591,984 57,650,003 (547) (3,286,373) 125,170,944 (3,188) (3,188) 1,248,680 (3,188) (547) (3,289,561) 126,419,624
  10. STATEMENT OF CHANGES IN EQUITY - BANK 9 Other Reserves Stated Capital Rs .'000 Balance as at 31.12.2017 - Audited 37,143,541 Statutory Reserve Retained Earnings Fund Rs.'000 6,476,952 Rs.'000 4,987,446 Revaluation Reserve Rs.'000 7,088,054 Available-for-Sale Fair Value Reserve Reserve Rs.'000 (1,707,494) Rs.'000 - Foreign Currency Translation Reserve Rs.'000 314,253 Hedging Reserve Rs.'000 (3,212) Employee Share Option Reserve Rs.'000 529,817 General Reserve Rs.'000 52,270,003 Impact of adoption of SLFRS 09 Rs.'000 107,099,360 - Recognition of SLFRS 9 ECLs including those measured at FVOCI (5,305,558) Deferred tax on transitional adjustments 1,730,356 Transfer of AFS reserve build o/a reclassification of AFS portfolio to HTM portfolio, net of tax (1,587,069) Impact of reclassifying financial investment from AFS to FVTPL 1,587,069 340,182 (340,182) Remeasurement impact of reclassifying financial investment from L&R to FVOCI Transfer of AFS reserve to fair value reserve Balance as at 01.01.2018 - Audited Total Equity 460,607 37,143,541 6,476,952 165,357 7,088,054 - 194,256 (5,111,302) (47,775) 1,682,581 - - - - (11,294) (11,294) (460,607) - (325,420) 314,253 (3,212) 529,817 52,270,003 103,659,345 Total comprehensive income for the six months ended 30.06.2018 Profit for the six months ended 30.06.2018 - - Other comprehensive income for the six months ended 30.06.2018 - - - - Total comprehensive income for the six months ended 30.06.2018 8,066,032 8,066,032 - - - - - - - 107,471 - 322,884 - 51,166 - - 8,066,032 481,521 - - 107,471 322,884 51,166 - - 8,547,553 199,874 Transactions with owners, recognized directly in equity, contributions by and distributions to owners Issue of Ordinary Shares under Employee Share Option Plans [ ESOPs ] Transfer o/a Share-based Payment transactions 199,874 - - - - - - - - 5,875 - - - - - - (5,875) - - Dividends to equity holders Second interim dividend for 2017 Final dividend for 2017 satisfied in the form of issue and allotment of new shares Unclaimed dividend absorbed/(dividend paid) in respect of previous years Share-based Payment transactions Total transactions with equity holders Balance as at 30.06.2018 - Audited 1,794,844 - (2,989,996) - - - - - - (2,989,996) - (1,994,271) - - - - - - (199,427) - - 1,207 - - - - - - 1,207 - - - - - - - 45,470 - 45,470 - - 2,000,593 39,144,134 6,476,952 (4,983,060) 3,248,329 7,088,054 - - - (217,949) 637,137 - 39,595 47,954 569,412 52,270,003 (2,942,872) 109,264,026 Total comprehensive income for the six months ended 31.12.2018 Profit for the six months ended 31.12.2018 - - 9,477,796 - - - - - Other comprehensive income for the six months ended 31.12.2018 - - 110,285 - - (1,167,033) 2,234,633 (23,935) - - 1,153,950 - - 9,588,081 - - (1,167,033) 2,234,633 (23,935) - - 10,631,746 3,209 - - - - - - - - 3,209 539 - - - - - - - - First interim dividend for 2018 - - (1,516,084) - - - - - - Unclaimed dividend absorbed/(dividend paid) in respect of previous years - - (59) - - - - - - - - - - - - - 23,111 - - 22,572 5,380,000 24,019 591,984 57,650,003 Total comprehensive income for the six months ended 31.12.2018 - 9,477,796 Transactions with owners, recognized directly in equity, contributions by and distributions to owners Issue of Ordinary Shares under Employee Share Option Plans [ ESOPs ] Transfer o/a Share-based Payment transactions (539) Dividends to equity holders Share-based Payment transactions Transfers during the period Total transactions with equity holders Balance as at 31.12.2018 - Audited - 877,191 (6,257,191) - - 3,748 877,191 (7,773,334) - - 39,147,882 7,354,143 5,063,076 7,088,054 - (1,384,982) 2,871,770 - 5,380,000 (1,516,084) (59) 23,111 (1,489,823) 118,405,949
  11. Other Reserves Stated Capital Rs .'000 Statutory Reserve Retained Earnings Fund Rs.'000 Rs.'000 Revaluation Reserve Rs.'000 Available-for-Sale Fair Value Reserve Reserve Rs.'000 Rs.'000 Foreign Currency Translation Reserve Hedging Reserve Employee Share Option Reserve General Reserve Total Equity Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Impact of adoption of SLFRS 16 Reversal of deferred tax asset created on liability o/a straight lining of lease rentals (57,627) (57,627) - Balance as at 01.01.2019 39,147,882 7,354,143 5,005,449 7,088,054 - (1,384,982) 2,871,770 24,019 591,984 57,650,003 118,348,322 Total comprehensive income for the six months ended 30.06.2019 Profit for the six months ended 30.06.2019 - - Other comprehensive income for the six months ended 30.06.2019 - - - - 30,128 - 1,738,947 - Total comprehensive income for the six months ended 30.06.2019 6,466,383 - - - - - - - 3,450,029 (798,546) (58,059) - - 2,593,424 - - 3,450,029 (798,546) (58,059) - - 9,059,807 - - - - - - 30,128 (2,022,032) - - - - - - (283,085) (547) - - - - - - (547) - - - - - - - - - - - - 6,466,383 - 6,466,383 Transactions with owners, recognized directly in equity, contributions by and distributions to owners Issue of Ordinary Shares under Employee Share Option Plans [ ESOPs ] - Dividends to equity holders Second interim dividend for 2018 Final dividend for 2018 satisfied in the form of issue and allotment of new shares (3,032,869) Unclaimed dividend absorbed/(dividend paid) in respect of previous years Share-based Payment transactions Total transactions with equity holders Balance as at 30.06.2019 - Audited 1,769,075 40,916,957 7,354,143 (5,055,448) 6,416,384 (3,032,869) 7,088,054 - 2,065,047 2,073,224 (34,040) 591,984 57,650,003 (3,286,373) 124,121,756
  12. STATEMENT OF CASH FLOWS 10 Group For the six months ended June 30 , 2019 2018 Bank 2019 (Restated) Rs.'000 Rs.'000 2018 (Restated) Rs.'000 Rs.'000 Cash Flows from Operating Activities Profit before taxation 10,350,432 11,848,804 10,046,308 11,887,757 6,146,049 6,233,636 5,907,954 5,742,484 (39,821,233) (66,460,665) (38,194,570) (67,267,028) 39,845,477 49,634,900 34,983,879 48,283,984 Adjustment for: Non-cash items included in profit before tax Change in operating assets Change in operating liabilities Net (gains)/losses from disposal of assets (2,223) Share of profits from associates, net of tax (5,872) (5,180) - - - - (38,796) (33,391) Dividend income from subsidiaries and associates Interest expense on subordinated liabilities Net (gains)/losses from disposal of financial investments Benefits paid on defined benefit plans Net unrealized gain from translation of Financial Statements of foreign operations Income taxes paid 1,903,027 509 1,218,244 (2,251) 1,903,027 272 1,218,244 (555) (6,153) (555) (6,153) (38,346) (33,976) (38,346) (33,976) (891,557) 348,197 (798,546) 322,884 (3,861,898) (2,708,766) (3,833,495) (2,676,967) - Net cash from/(used in) operating activities 13,623,301 69,550 9,934,609 (2,561,890) Cash Flows from Investing Activities Net purchase of property, plant and equipment Proceeds from the sale of property, plant and equipment Purchase of financial investments Proceeds from sale and maturity of financial investments Net purchase of intangible assets (609,679) 3,125 1,232,023 250 (52,257) 1,312,486 3,125 1,232,023 (606,344) 250 (52,257) 1,312,486 (208,850) (100,625) - - (40,450) (455,800) Dividends received from investments in subsidiaries and associates - - 38,796 33,391 458,941 131,101 420,524 (129,484) (565,703) Net cash flow from investment in subsidiaries and associates Net cash from/(used in) in investing activities (204,945) (637,594) 493,401 Cash Flows from Financing Activities Net proceeds from the issue of ordinary voting shares under ESOPs 30,128 199,874 30,128 199,874 Interest paid on subordinated liabilities (1,920,975) (1,186,429) (1,920,975) (1,186,429) Dividend paid to shareholders of the Bank (3,316,501) (3,188,216) (3,316,501) (3,188,216) (3,188) (2,531) (5,210,536) (4,177,302) (5,207,348) (4,174,771) 8,833,289 (3,614,351) 5,186,202 (6,605,560) Cash and cash equivalents at beginning of the period as per Statement of Financial Position 44,355,962 34,673,424 39,534,476 33,224,619 Cash and cash equivalents at end of the period 53,189,251 31,059,073 44,720,678 26,619,059 Dividend paid to non-controlling interest Net cash from /(used in) financing activities Net increase/(decrease) in cash & cash equivalents Less: Impairment charges Cash and cash equivalents as per Statement of Financial Position (924) 53,188,327 31,059,073 - (924) 44,719,754 - 26,619,059
  13. CLASSIFICATION OF FINANCIAL ASSETS AND LIABILITIES - GROUP - As at 30 .06.2019 Financial instruments recognised through profit or loss (FVTPL) Rs.'000 11 Financial instruments at Financial instruments at Amortised Cost (AC) fair value through other comprehensive income (FVOCI) Rs.'000 Rs.'000 Total Rs.'000 FINANCIAL ASSETS Cash and cash equivalents 53,188,327 53,188,327 Balances with Central Banks 45,126,978 45,126,978 Placements with banks 24,883,478 24,883,478 Securities purchased under resale agreements 18,497,618 18,497,618 Derivative financial assets Financial assets recognised through profit or loss – measured at fair value 3,253,835 3,253,835 12,252,492 12,252,492 736,299 736,299 854,238,500 854,238,500 Financial assets at amortised cost – Loans and advances to banks Financial assets at amortised cost – Loans and advances to other customers 98,761,011 Financial assets at amortised cost – Debt and other financial instruments Financial assets measured at fair value through other comprehensive income Total financial assets 15,506,327 Financial instruments recognised through profit or loss (FVTPL) Rs.'000 1,095,432,211 98,761,011 208,698,513 208,698,513 208,698,513 1,319,637,051 Financial instruments at Financial instruments at Amortised Cost (AC) fair value through other comprehensive income (FVOCI) Rs.'000 Rs.'000 Total Rs.'000 FINANCIAL LIABILITIES Due to banks 62,009,934 62,009,934 40,649,376 40,649,376 Financial liabilities at amortised cost – due to depositors 1,037,150,823 1,037,150,823 Financial liabilities at amortised cost – other borrowings 24,188,447 24,188,447 Subordinated liabilities 37,494,509 37,494,509 Derivative financial liabilities 2,411,810 Securities sold under repurchase agreements Total financial liabilities 2,411,810 2,411,810 1,201,493,089 - 1,203,904,899
  14. CLASSIFICATION OF FINANCIAL ASSETS AND LIABILITIES - GROUP - As at 31 .12.2018 - (Audited) Financial instruments recognised through profit or loss (FVTPL) Rs.'000 12 Financial instruments at Financial instruments at Amortised Cost (AC) fair value through other comprehensive income (FVOCI) Rs.'000 Rs.'000 Total Rs.'000 FINANCIAL ASSETS Cash and cash equivalents 44,355,962 44,355,962 Balances with Central Banks 55,406,535 55,406,535 Placements with banks 19,898,515 19,898,515 9,513,512 9,513,512 Securities purchased under resale agreements Derivative financial assets 7,909,962 Financial assets recognised through profit or loss – measured at fair value 5,520,167 7,909,962 5,520,167 763,074 763,074 867,611,976 867,611,976 Financial assets at amortised cost – Loans and advances to banks Financial assets at amortised cost – Loans and advances to other customers 89,274,413 Financial assets at amortised cost – Debt and other financial instruments Financial assets measured at fair value through other comprehensive income Total financial assets 13,430,129 Financial instruments recognised through profit or loss (FVTPL) Rs.'000 1,086,823,987 89,274,413 176,760,611 176,760,611 176,760,611 1,277,014,727 Financial instruments at Financial instruments at Amortised Cost (AC) fair value through other comprehensive income (FVOCI) Rs.'000 Rs.'000 Total Rs.'000 FINANCIAL LIABILITIES Due to banks 52,362,052 52,362,052 48,951,394 48,951,394 Financial liabilities at amortised cost – due to depositors 994,370,875 994,370,875 Financial liabilities at amortised cost – other borrowings 25,361,912 25,361,912 Subordinated liabilities 37,992,457 37,992,457 1,159,038,690 1,167,060,473 Derivative financial liabilities 8,021,783 Securities sold under repurchase agreements Total financial liabilities 8,021,783 8,021,783
  15. CLASSIFICATION OF FINANCIAL ASSETS AND LIABILITIES - BANK - As at 30 .06.2019 - (Audited) Financial instruments recognised through profit or loss (FVTPL) Rs.'000 13 Financial instruments at Financial instruments at Amortised Cost (AC) fair value through other comprehensive income (FVOCI) Rs.'000 Rs.'000 Total Rs.'000 FINANCIAL ASSETS Cash and cash equivalents 44,719,754 44,719,754 Balances with Central Banks 43,450,379 43,450,379 Placements with banks 24,386,003 24,386,003 Securities purchased under resale agreements 18,497,618 18,497,618 Derivative financial assets Financial assets recognised through profit or loss – measured at fair value 3,253,835 3,253,835 12,252,492 12,252,492 736,299 736,299 847,364,012 847,364,012 Financial assets at amortised cost – Loans and advances to banks Financial assets at amortised cost – Loans and advances to other customers 93,363,847 Financial assets at amortised cost – Debt and other financial instruments Financial assets measured at fair value through other comprehensive income Total financial assets 15,506,327 Financial instruments recognised through profit or loss (FVTPL) Rs.'000 1,072,517,912 93,363,847 208,459,018 208,459,018 208,459,018 1,296,483,257 Financial instruments at Financial instruments at Amortised Cost (AC) fair value through other comprehensive income (FVOCI) Rs.'000 Rs.'000 Total Rs.'000 FINANCIAL LIABILITIES Due to banks 59,867,706 59,867,706 40,747,726 40,747,726 Financial liabilities at amortised cost – due to depositors 1,020,918,723 1,020,918,723 Financial liabilities at amortised cost – other borrowings 24,188,447 24,188,447 Subordinated liabilities 37,494,509 37,494,509 Derivative financial liabilities 2,411,810 Securities sold under repurchase agreements Total financial liabilities 2,411,810 2,411,810 1,183,217,111 - 1,185,628,921
  16. CLASSIFICATION OF FINANCIAL ASSETS AND LIABILITIES - BANK - As at 31 .12.2018 - (Audited) Financial instruments recognised through profit or loss (FVTPL) Rs.'000 14 Financial instruments at Financial instruments at Amortised Cost (AC) fair value through other comprehensive income (FVOCI) Rs.'000 Rs.'000 Total Rs.'000 FINANCIAL ASSETS Cash and cash equivalents 39,534,476 39,534,476 Balances with Central Banks 54,384,590 54,384,590 Placements with banks 19,898,515 19,898,515 9,513,512 9,513,512 Securities purchased under resale agreements Derivative financial assets 7,909,962 Financial assets recognised through profit or loss – measured at fair value 5,520,167 7,909,962 5,520,167 763,074 763,074 861,100,315 861,100,315 Financial assets at amortised cost – Loans and advances to banks Financial assets at amortised cost – Loans and advances to other customers 83,855,436 Financial assets at amortised cost – Debt and other financial instruments Financial assets measured at fair value through other comprehensive income Total financial assets 13,430,129 Financial instruments recognised through profit or loss (FVTPL) Rs.'000 1,069,049,918 83,855,436 176,506,729 176,506,729 176,506,729 1,258,986,776 Financial instruments at Financial instruments at Amortised Cost (AC) fair value through other comprehensive income (FVOCI) Rs.'000 Rs.'000 Total Rs.'000 FINANCIAL LIABILITIES Due to banks 50,101,081 50,101,081 49,104,462 49,104,462 Financial liabilities at amortised cost – due to depositors 983,037,314 983,037,314 Financial liabilities at amortised cost – other borrowings 25,361,912 25,361,912 Subordinated liabilities 37,992,457 37,992,457 1,145,597,226 1,153,619,009 Derivative financial liabilities 8,021,783 Securities sold under repurchase agreements Total financial liabilities 8,021,783 8,021,783
  17. SELECTED PERFORMANCE INDICATORS ( AS PER REGULATORY REPORTING) 15 Bank Group As at As at As at As at 30.06.2019 31.12.2018 30.06.2019 31.12.2018 Regulatory Capital - Rs. '000 Common Equity Tier I 115,694,953 107,110,518 118,666,970 109,879,697 Tier I Capital 115,694,953 107,110,518 118,666,970 109,879,697 Total Capital 153,849,886 147,398,341 156,821,903 150,167,520 Regulatory Capital Ratios (%) Common Equity Tier I Capital Ratio ( Minimum Requirement - 2019 - 8.500%, 2018 - 7.375% ) 12.467% 11.338% 12.496% 11.431% Tier I Capital Ratio ( Minimum Requirement - 2019 - 10.000%, 2018 - 8.875% ) 12.467% 11.338% 12.496% 11.431% Total Capital Ratio ( Minimum Requirement - 2019 - 14.000%, 2018 - 12.875% ) 16.578% 15.603% 16.514% 15.623% 6.43% N/A 6.51% N/A Leverage Ratio ( Minimum Requirement - 2019 - 3% ) Regulatory Liquidity Statutory Liquid Assets - Rs. '000 Domestic Banking Unit 312,555,468 235,866,816 Off-Shore Banking Unit 18,594,037 21,463,887 Statutory Liquid Assets Ratio % ( Minimum Requirement 20% ) Domestic Banking Unit 30.87% 24.47% Off-Shore Banking Unit 26.63% 30.20% Total Stock of High Quality Liquid Assets - Rs. '000 204,531,720 Liquidity Coverage Ratio (%) - Rupee ( Minimum Requirement - 2019 - 100%, 2018 - 90% ) Liquidity Coverage Ratio (%) - All Currency ( Minimum Requirement - 2019- 100%, 2018 - 90% ) Net Stable Funding Ratio (%) Minimum Requirement - 2019 - 90% ) 153,018,792 229.96% 236.20% 229.99% 238.69% ( 142.65% N/A Asset Quality (Quality of Loan Portfolio) Gross Non-Performing Advances Ratio 4.86% 3.24% 2.96% 1.71% Interest Margin 3.60% 3.67% Return on Assets ( before tax ) 1.53% 2.09% 10.75% 15.56% 42.48% 45.39% 8.13 10.00 ( Net of Interest in Suspense ) Net Non-Performing Advances Ratio ( Net of Interest in Suspense and Provisions ) Profitability Return on Equity Debt Security Related Ratios Debt Equity Ratio Interest Cover (Times)
  18. OPERATING SEGMENTS - GROUP Personal Banking For the six months ended June 30 , 2019 Corporate Banking 2018 2019 16 International Operations 2018 2019 Investment Banking 2018 2019 Dealing/Treasury 2018 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 14,983,672 13,570,655 3,760,751 3,975,836 3,365,314 2,463,859 115,526 156,786 161,457 100,514 120,917 995,845 605,810 - - 3,166,419 3,258,343 955,587 1,026,273 697,556 691,178 16,612 14,090 113,539 114,706 1,070 25,460 20,111 5,903 (37,253) (3,096) 18,425,087 17,044,218 4,429,595 5,148,486 5,078,826 3,766,750 2019 Unallocated/Eliminations 2018 2019 2018 Total/Consolidated 2019 2018 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 1,781,059 1,325,386 24,145,536 22,366,947 618,815 2,496,265 1,447,104 4,838,450 4,992,050 External Operating income : Net interest income Foreign exchange profit Net fees and commission income Other income Total Operating income (287,813) 109,360 (134,035) 167,780 874,425 1,048 2,276 2,166 385,788 143,551 154,047 91,813 637,302 378,337 2,664,692 1,021,190 1,424,468 2,036,014 32,117,553 29,184,438 (178,432) (143,537) (510,638) - Credit loss expenses (3,477,864) (2,131,686) (1,831,276) (148,602) 1,840 Net Operating income 14,947,223 14,912,532 2,598,319 4,189,378 5,188,186 3,632,715 (53,717) 169,620 2,486,260 877,653 1,424,468 5,064,241 5,814,414 1,581,211 3,560,256 3,445,765 2,437,856 (92,448) 124,898 2,023,678 679,468 (1,677,887) Segment result (959,108) 94,885 139,214 2,137,414 - - 2,036,014 (773,268) Profit from operations Share of profit of Associates, net of tax (3,366,526) 25,817,912 10,344,560 11,843,624 10,344,560 11,843,624 5,872 Income tax expense (3,677,831) Non Controlling Interest (92,039) Net profit for the period, attributable to Equity holders of the Bank As at June 30, (5,526,814) 26,590,739 6,580,562 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 5,180 (3,823,656) (46,174) 7,978,974 2018 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 459,123,943 442,229,407 333,280,302 299,291,714 137,677,100 144,489,158 6,117,084 7,499,235 356,801,603 247,826,566 72,981,286 72,039,589 1,365,981,318 1,213,375,669 105,388 107,669 105,388 107,669 Other information Segment assets Investment in associates - - - - - - - - - - Total assets 459,123,943 442,229,407 333,280,302 299,291,714 137,677,100 144,489,158 6,117,084 7,499,235 356,801,603 247,826,566 73,086,674 72,147,258 1,366,086,706 1,213,483,338 Segment liabilities 820,333,123 739,907,496 207,606,853 166,296,225 129,544,433 112,882,793 6,222,472 7,606,904 67,448,425 62,839,567 8,511,776 8,805,119 1,239,667,082 1,098,338,104 Total liabilities 820,333,123 739,907,496 207,606,853 166,296,225 129,544,433 112,882,793 6,222,472 7,606,904 67,448,425 62,839,567 8,511,776 8,805,119 1,239,667,082 1,098,338,104 For the six months ended June 30, 2019 2018 2019 Rs.'000 Rs.'000 Rs.'000 28,917,293 22,262,366 17,001,151 2018 Rs.'000 2019 2018 Rs.'000 Rs.'000 7,615,868 2,414,692 2019 Rs.'000 2018 Rs.'000 2019 Rs.'000 2018 Rs.'000 2019 Rs.'000 2018 Rs.'000 2019 Rs.'000 2018 Rs.'000 Information on cash flows Cash flows from operating activities (53,048,888) - 13,623,301 69,550 - 1,232,023 1,260,229 (5,210,536) (4,177,302) Property,Plant & Equipment (606,554) (637,344) Intangible assets (204,945) (129,484) Cash flows from investing activities - - - - - - Cash flows from financing activities - - - - - - 423,651 287,085 1,232,023 1,260,229 - - (40,334,662) (1,920,975) 28,154,295 (1,186,429) (3,289,561) (2,990,873) Capital expenditure - Net cash flow generated during the period 8,833,289 (3,614,351)
  19. SHAREHOLDERS ' INFORMATION 17 Twenty largest voting shareholders as at June 30, 2019 Name of the Shareholder No. of Shares % Employees Provident Fund 92,558,649 9.63 DFCC Bank PLC A/C 1 82,560,377 8.59 Mr.Y. S. H. I. Silva 77,604,815 8.07 Deutsche Bank AG Singapore - DSS A/C Ntasian Discovery Master Fund 54,817,777 5.70 DFCC Bank PLC A/C No.02 47,672,102 4.96 Melstacorp PLC 44,444,324 4.62 Sri Lanka Insurance Corporation Ltd. - Life Fund 43,619,107 4.54 CB NY S/A International Finance Corporation 42,651,626 4.44 Sri Lanka Insurance Corporation Ltd. - General Fund 37,506,430 3.90 Citibank Newyork S/A Norges Bank Account 2 20,634,474 2.15 Employees Trust Fund Board 17,054,174 1.77 BNYMSANV RE - LF Ruffer Absolute Return Fund 16,893,393 1.76 Mrs. L. E. M. Yaseen 16,257,919 1.69 JPMCB - T Rowe New Asia Fund 15,163,496 1.58 BNYMSANV RE - First State Investments ICVC - Stewart Investors Indian Subcontinent Sustainability Fund 14,184,363 1.48 BPSS LUX - Aberdeen Standard SICAV I - Asia Pacific Equity Fund 9,720,591 1.01 BNYMSANV RE - First State Investments ICVC - Stewart Investors Global Emerging Markets Fund 9,702,161 1.01 Renuka Hotels PLC 9,666,942 1.01 Mr. M. J. Fernando 9,181,964 0.96 SSBT - BMO Investments II (Ireland) Public Limited Company 8,611,878 0.90 670,506,562 69.75 Sub total Other Shareholders Total Percentage of public holding as at June 30, 2019 290,745,755 30.25 961,252,317 100.00 - 99.76% (99.68% as at June 30, 2018) Number of shareholders representing public holding as at June 30, 2019 - 11,186 (10,148 as at June 30, 2018) . Twenty largest non-voting shareholders as at June 30, 2019 Name of the Shareholder No. of Shares Citibank Newyork S/A Norges Bank Account 2 % 10,181,372 15.37 Employees Trust Fund Board 5,154,149 7.78 Akbar Brothers (Pvt) Ltd. A/C No 1 2,704,739 4.08 GF Capital Global Limited 1,712,928 2.59 BNYM RE - Butterfield Trust (Bermuda) Limited 1,494,489 2.26 M.J.F.Exports (Pvt) Ltd 1,133,395 1.71 Mr. M. F. Hashim 1,081,579 1.63 Saboor Chatoor (Pvt) Ltd 904,646 1.37 Mrs. L. V. C. Samarasinha 891,208 1.35 Mr. M. J. Fernando 730,734 1.10 Mr. T.W.A. Wickramasinghe Mr. J. D. Bandaranayake , Ms. N. Bandaranayake & Dr. V. Bandaranayake (Joint) 697,549 629,935 1.05 0.95 Mr. J. D. Bandaranayake , Dr. V. Bandaranayake & Ms. I. Bandaranayake (Joint) 627,619 0.95 Mr. R. Gautam 609,919 0.92 Mr. G. R. Mallawaaratchy & Mrs. B. G. P. Mallawaaratchy (Joint) 555,582 0.84 Mr. K.S.M. De Silva 532,106 0.80 Mr. J.G. De Mel 500,902 0.76 Mr. A.P. Somasiri 463,685 0.70 Mr. A.L. Gooneratne 446,072 0.67 Mr. E. Chatoor 434,381 0.66 31,486,989 47.52 Sub total Other Shareholders Total Percentage of public holding as at June 30, 2019 Number of shareholders representing public holding as at June 30, 2019 34,767,280 52.48 66,254,269 100.00 - 84.41% (84.34% as at June 30, 2018) - 4,448 (4,393 as at June 30, 2018) Directors' holding in shares as at June 30, 2019 Name of Director No. of Shares Voting Mr.K.G.D.D. Dheerasinghe - Chairman Mr.M.P. Jayawardena - Deputy Chairman Mr.S. Renganathan - Managing Director/Chief Executive Officer Mr.S.C.U. Manatunge - Chief Operating Officer Non-voting 24,254 353,736 12,143 69,778 - Mr.S. Swarnajothi - 11,152 Prof. A.K.W. Jayawardane - - Mr. K. Dharmasiri - - Mr. L.D. Niyangoda - Ms. N.T.M.S. Cooray 193,062 51,540 Mr. T.L.B. Hurulle - - Justice K. Sripavan - -
  20. INFORMATION ON ORDINARY SHARES OF THE BANK 18 2019 2018 Rs . Rs. Market price of an ordinary share as at June 30, Voting 91.90 123.00 Non-Voting 82.00 94.00 103.00 138.50 90.00 108.90 Voting 88.60 122.90 Non-Voting 74.00 94.00 Highest price during the quarter ended June 30, Voting Non-Voting Lowest price during the quarter ended June 30, Float adjusted market capitalization - Compliant under Option 1 2019 2018 Rs.000 Rs.000 92,712,943 2019 Number of ordinary shares as at June 30, Voting Non-Voting 121,100,719 2018 961,252,317 945,680,655 66,254,269 65,013,174 EXPLANATORY NOTES 1 There were no changes to the Accounting Policies and methods of computation since the publication of the Annual Report for the year ended December 31, 2018, except for the Accounting Policies and methods of computation adopted to be in compliant with the requirements of the Sri Lanka Accounting Standard SLFRS - 16 on Leases, which became effective for Annual Financial periods from January 01, 2019. 2 These Interim Financial Statements have been prepared in compliance with the requirements of the Sri Lanka Accounting Standard - LKAS 34 on 'Interim Financial Reporting' and provide the information as required in terms of Rule 7.4 of the Colombo Stock Exchange. Interim Financial Statements for the six months ended June 30, 2018 has been restated by incorporating the impact on adopting SLFRS 9 which became effective from January 01, 2018. The Bank has previously prepared Interim Financial Statements for the six months ended June 30, 2018 based on “LKAS 39 – Financial Instruments: Recognition and Measurement” as permitted by the Statement of Alternative Treatment (SoAT) on the Figures in the Interim Financial Statements” issued by The Institute of Chartered Accountants of Sri Lanka. 3 Comparative figures for the six months ended June 30, 2018 - Group and Bank Comparative figures have been re-stated/re-classified where necessary, to conform to the current period presentation. The following line items of the Interim Financial Statements for the six months ended June 30, 2018 have been restated due to the adoption of SLFRS 9 and the Circular No. 02 of 2019 dated January 18, 2019 issued by the Bank Supervision Department of the Central Bank of Sri Lanka. For the six months ended June 30, 2018 - Bank Income Statement Gross income Interest income Net interest income Net gains/(losses) from trading Net gains/(losses) from derecognition of financial assets Net other operating income Total operating income Impairment charges and other losses Net operating income Operating profit before taxes on financial services Value Added Tax (VAT) Nation Building Tax (NBT) Profit before income tax Income tax expense Profit for the period Rs. '000 64,154,632 56,703,255 34,657,661 (1,155,989) 145,064 2,793,980 28,608,408 2,973,607 25,634,801 14,471,114 2,275,974 307,383 11,887,757 3,821,725 8,066,032 As Reported Previously Rs. '000 65,992,475 58,207,100 34,657,661 (1,223,582) 148,428 3,192,207 30,446,251 3,635,473 26,810,778 15,647,091 2,421,758 327,072 12,897,261 4,252,042 8,646,219 (10,870) (10,870) 118,341 207,846 (200,376) 110,871 481,521 8,547,553 56,723 56,723 178,016 101,620 (44,113) 120,509 608,789 9,255,008 Restated Statement of profit or loss and Other Comprehensive Income Net change in fair value on investments in equity Change in fair value on investments in equity at fair value through other comprehensive income Net gains/(losses) on investment in financial assets at fair value through other comprehensive income Fair value gains/(losses) that arose during the period, net of tax Fair value gains/(losses) realised to the Income Statement on disposal, net of tax Fair value gains/(losses) recycled to the Income Statement on reclassification, net of tax Fair value gains/(losses) recycled to the Income Statement as impairment, net of tax Other comprehensive income/(expense) for the period, net of taxes Total comprehensive income for the period Group Interim Financial Statements for the six month ended June 30, 2018 also have been restated accordingly. 4 During the quarter, there were no material changes in the composition of assets, liabilities, contingent liabilities. 5 All known expenses including management fees and similar expenses have been provided for in these Interim Financial Statements. 6 The Board of Directors of the Bank resolved to acquire 40% stake in Commercial Insurance Brokers (Private) Limited for a purchase consideration of Rupees Two Hundred and Fifty Million (Rs. 250,000,000/-) and entered in to a share sale and purchase agreement with Chemanex PLC on May 31, 2019. Accordingly, this transaction was concluded on August 05, 2019 with a transfer of Two Hundred and Thirty Nine Thousand Nine Hundred and Ninety Nine Shares (239,999) representing 40% stake that the Chemanex PLC had in Commercial Insurance Brokers (Private) Limited to the Bank. As the Bank’s subsidiary, Commercial Development Co. PLC too has a stake of 20% in Commercial Insurance Brokers (Private) Limited, which makes the group’s stake in Commercial Insurance Brokers (Private) Limited to be 58.40%. as at August 05,2019. 7 There were no material events that took place since June 30, 2019, that require disclosure in these Interim Financial Statements other than those disclosed above. Auditors' Opinion on the Financial Statements of the Bank as at June 30, 2019 and for the six months period then ended The figures relating to the Bank have been extracted from the Financial Statements that had been audited by M/s Ernst & Young, the External Auditors of the Bank. The Auditors expressed an unqualified opinion on the said Financial Statements prepared as at June 30, 2019 and for the six months period then ended.
  21. INFORMATION ON DEBENTURES - BANK Type of Issue 19 Public Public Public Public Public Public Type "A" Type "B" Type "A" Type "B" Type "A" Type "B" CSE Listing Listed Listed Listed Listed Listed Listed Issue Date March 9, 2016 March 9, 2016 Oct 28, 2016 Oct 28, 2016 Jul 23, 2018 Jul 23, 2018 Maturity Date March 8, 2021 March 8, 2026 Oct 27, 2021 Oct 27, 2026 July 22, 2023 July 22, 2028 Interest Payable Frequency (Fixed Interest Rate) Bi-Annually Bi-Annually Bi-Annually Bi-Annually Bi-Annually Bi-Annually Offered Interest Rate 10.75% p.a. 11.25% p.a. 12.00% p.a. 12.25% p.a. 12.00% p.a. 12.50% p.a. Debenture Type Amount (Rs.'000) 4,430,340 Market Values - Highest (Rs.) - Lowest (Rs.) - Year-end (Rs.) Interest Rates - Coupon Rate (%) - Effective Annual Yield (%) Interest rate of comparable Government Security 1,749,090 5,071,800 1,928,200 8,393,840 1,606,160 90.00 90.00 * 90.00 100.00 100.00 *** 100.00 90.00 90.00 ** 90.00 Not traded during the year Not traded during the year Not traded during the year 10.75 11.04 11.25 11.57 12.00 12.36 12.25 12.63 12.00 12.36 12.50 12.89 9.10 10.15 9.30 10.15 9.80 10.35 Other Ratios as at date of last trade - Interest Yield (%) 16.57 11.24 16.86 - N/A - - N/A - - N/A - - Yield to Maturity (%) 16.32 11.25 16.64 - N/A - - N/A - - N/A - * Last traded date was January 30, 2019. ** Last traded date was March 13, 2019. *** Last traded date was June 27, 2019.
  22. ANALYSIS OF LOANS AND ADVANCES TO OTHER CUSTOMERS AND IMPAIRMENT As at 30 .06.2019 Rs.'000 Gross loans and advances to other customers Group As at 31.12.2018 Rs.'000 As at 30.06.2019 Rs.'000 20 Bank As at 31.12.2018 Rs.'000 888,922,636 897,955,796 880,965,166 890,229,368 Less: Accumulated impairment under stage 1 2,771,918 2,814,943 2,625,137 2,659,185 : Accumulated impairment under stage 2 5,239,524 5,984,306 5,141,325 5,873,226 : Accumulated impairment under stage 3 26,672,694 21,544,571 25,834,692 20,596,642 854,238,500 867,611,976 847,364,012 861,100,315 Net value of loans and advances to other customers Gross loans and advances to other customers By product - Domestic Currency Overdrafts 116,072,590 125,698,662 116,072,590 125,698,662 Trade finance 56,778,042 56,987,971 56,778,042 56,987,971 Lease rental receivable 42,667,897 40,336,066 35,630,023 37,737,201 Credit cards 13,563,396 12,866,454 13,563,396 12,866,454 1,806,285 1,577,472 1,806,285 1,577,472 Pawning Staff loans Housing loans Personal loans Term loans Bills of Exchange 9,353,567 9,137,897 9,353,567 9,129,558 57,601,001 57,319,225 57,601,001 57,319,225 36,398,421 36,199,390 36,398,421 34,289,641 341,020,330 351,940,397 343,587,128 351,779,655 279,529 584,950 279,529 584,950 675,541,058 692,648,484 671,069,982 687,970,789 Overdrafts 18,463,156 16,295,323 17,166,740 15,267,860 Trade finance 20,084,649 20,692,527 19,993,715 20,611,079 Lease rental receivable 919,576 897,835 919,204 897,835 Credit cards 128,098 109,063 128,098 109,063 Staff loans 183,096 173,136 183,096 171,191 5,418,647 5,215,642 5,418,647 5,068,940 Sub total By product - Foreign Currency Housing loans Personal loans Term loans Bills of Exchange 880,678 769,201 578,797 543,105 143,862,395 136,995,191 142,065,604 135,455,779 23,441,283 24,159,394 23,441,283 24,133,727 Sub total 213,381,578 205,307,312 209,895,184 202,258,579 Gross loans and advances to other customers 888,922,636 897,955,796 880,965,166 890,229,368
  23. ANALYSIS OF LOANS AND ADVANCES TO OTHER CUSTOMERS AND IMPAIRMENT 2019 Rs .'000 Group 2018 Rs.'000 21 2019 Rs.'000 Bank 2018 Rs.'000 Movement of impairment during the period Under Stage 1 Balance as at January 1, Charge/(write back) to the Income Statement Net write-off/(recoveries) during the year Exchange rate variance on foreign currency provisions Balance as at June 30/December 31, 2,814,943 (40,092) (2,933) 3,126,167 (324,074) (800) 13,650 2,659,185 (31,115) (2,933) 3,041,886 (393,953) (800) 12,052 2,771,918 2,814,943 2,625,137 2,659,185 5,984,306 4,348,188 5,873,226 4,165,027 Under Stage 2 Balance as at January 1, Charge/(write back) to the Income Statement Net write-off/(recoveries) during the year Exchange rate variance on foreign currency provisions Balance as at June 30/December 31, (743,256) (1,526) 1,632,467 (819) 4,470 (730,375) (1,526) 1,704,548 (819) 4,470 5,239,524 5,984,306 5,141,325 5,873,226 21,544,571 15,136,256 20,596,642 14,211,504 5,428,309 7,071,147 5,538,236 6,812,653 Under Stage 3 Balance as at January 1, Charge/(write back) to the Income Statement Net write-off/(recoveries) during the year Exchange rate variance on foreign currency provisions Interest accrued / (reversals) on impaired loans and advances Other movements Balance as at June 30/December 31, 358,452 (590,601) 358,452 (355,284) (59,437) 278,179 (59,437) 278,179 (661,967) (360,876) (661,967) (360,876) 62,766 10,466 62,766 10,466 26,672,694 21,544,571 25,834,692 20,596,642 30,343,820 22,610,611 29,129,053 21,418,417 4,644,961 8,379,540 4,776,746 8,123,248 Total Impairment Balance as at January 1, Charge/(write back) to the Income Statement Net write-off/(recoveries) during the year 358,452 (592,220) 358,452 Exchange rate variance on foreign currency provisions (63,896) 296,299 (63,896) 294,701 (661,967) (360,876) (661,967) (360,876) Interest accrued / (reversals) on impaired loans and advances Other movements Balance as at June 30/December 31, (356,903) 62,766 10,466 62,766 10,466 34,684,136 30,343,820 33,601,154 29,129,053
  24. ANALYSIS OF COMMITMENT AND CONTINGENCIES AND IMPAIRMENT As at 30 .06.2019 Rs.'000 Gross commitments and contingencies Group As at 31.12.2018 Rs.'000 22 As at 30.06.2019 Rs.'000 Bank As at 31.12.2018 Rs.'000 585,207,963 658,860,264 584,832,875 658,721,983 Accumulated impairment under stage 1 683,895 528,932 683,895 528,932 Accumulated impairment under stage 2 156,650 89,177 156,650 89,177 Accumulated impairment under stage 3 151,557 108,531 151,557 108,531 Total Impairment 992,102 726,640 992,102 726,640 Impairment on commitments and contingencies Gross commitments and contingencies By product – Domestic currency Contingencies 51,630,098 48,779,383 51,630,098 48,779,383 Guarantees 35,156,698 32,036,013 35,156,698 32,036,013 Bonds 14,970,556 14,941,012 14,970,556 14,941,012 Documentary Credits 737,803 1,199,201 737,803 1,199,201 Acceptances 120,861 251,512 120,861 251,512 Bills for collection 644,180 351,645 644,180 351,645 84,482,628 73,705,674 84,482,628 73,705,674 84,024,208 73,247,254 84,024,208 73,247,254 458,420 458,420 458,420 458,420 136,112,726 122,485,057 136,112,726 122,485,057 385,900,211 448,560,362 385,525,123 448,422,081 Guarantees 11,669,772 16,430,567 11,355,489 16,376,138 Bonds 21,034,778 30,174,699 21,034,778 30,171,139 Documentary Credits 43,887,186 48,279,363 43,857,571 48,199,071 250,792,088 281,906,678 250,792,088 281,906,678 Acceptances 32,589,635 41,680,045 32,583,911 41,680,045 Bills for collection 24,402,423 28,848,783 24,376,957 28,848,783 1,514,123 1,230,582 1,514,123 1,230,582 10,206 9,645 10,206 9,645 63,195,026 87,814,845 63,195,026 87,814,845 63,195,026 87,814,845 63,195,026 87,814,845 Commitments Undrawn commitments Capital commitments Sub Total By product - Foreign Currency Contingencies Forward exchange and Currency Swaps Stock of Travelers' Cheques Bullion on consignment Commitments Undrawn commitments Capital commitments Sub Total Total - - - - 449,095,237 536,375,207 448,720,149 536,236,926 585,207,963 658,860,264 584,832,875 658,721,983
  25. ANALYSIS OF COMMITMENT AND CONTINGENCIES AND IMPAIRMENT 23 Group Bank 2019 2018 2019 2018 Rs .'000 Rs.'000 Rs.'000 Rs.'000 Movement of impairment during the period Under Stage 1 Balance as at January 1, 528,932 656,764 528,932 656,764 Charge/(write back) to the Income Statement 155,667 (130,732) 155,667 (130,732) Exchange rate variance on foreign currency provisions Balance as at June 30/December 31, (704) 2,900 (704) 2,900 683,895 528,932 683,895 528,932 Balance as at January 1, 89,177 111,946 89,177 111,946 Charge/(write back) to the Income Statement 67,473 (22,769) 67,473 (22,769) 156,650 89,177 156,650 89,177 108,531 78,949 108,531 78,949 Under Stage 2 Balance as at June 30/December 31, Under Stage 3 Balance as at January 1, Charge/(write back) to the Income Statement Balance as at June 30/December 31, 43,026 29,582 43,026 29,582 151,557 108,531 151,557 108,531 Total Impairment Balance as at January 1, 726,640 847,659 726,640 847,659 Charge/(write back) to the Income Statement 266,166 (123,919) 266,166 (123,919) Exchange rate variance on foreign currency provisions Balance as at June 30/December 31, (704) 992,102 2,900 726,640 (704) 992,102 2,900 726,640 ANALYSIS OF DEPOSITS Group As at 30.06.2019 Rs.'000 As at 31.12.2018 Rs.'000 Bank As at 30.06.2019 Rs.'000 As at 31.12.2018 Rs.'000 By product - Domestic Currency Current account deposits Savings deposits Time deposits Certificate of deposits Sub Total 41,782,304 238,274,147 498,386,613 66,548 778,509,612 45,166,224 227,412,160 475,290,328 83,053 747,951,765 41,783,780 238,391,607 498,506,259 66,548 778,748,194 45,177,113 227,493,335 475,389,390 83,053 748,142,891 By product - Foreign Currency Current account deposits Savings deposits Time deposits Certificate of deposits Sub Total 36,863,929 76,561,801 145,215,481 258,641,211 32,286,978 72,501,383 141,630,749 246,419,110 26,100,332 73,667,008 142,403,189 242,170,529 26,476,915 69,972,029 138,445,479 234,894,423 1,037,150,823 994,370,875 1,020,918,723 983,037,314 Total
  26. CORPORATE INFORMATION 24 NAME OF COMPANY TAX PAYER IDENTIFICATION NUMBER (TIN) Commercial Bank of Ceylon PLC 124006007 LEGAL FORM CREDIT RATING A public limited liability company incorporated in Sri Lanka Operation Sri Lanka on June 25, 1969 under the Companies AA (lka) was re-affirmed by Fitch Ratings Lanka Ltd. in September 2018. Ordinance No. 51 of 1938 and quoted in the Colombo Stock Exchange in March 1970. The Company was Bangladesh Operation re-registered under the Companies Act No.7 of 2007. AAA was re-affirmed by Credit Rating Information & Services Limited A licensed Commercial Bank under Banking Act No.30 of 1988. in May 2019. COMPANY REGISTRATION NUMBER COMPLIANCE OFFICER PQ116 Mr. V.S. Rajasooriyar Assistant General Manager - Compliance STOCK EXCHANGE LISTING The Ordinary Shares and the Unsecured Subordinated Redeemable Debentures of the Bank are listed on the Colombo Stock Exchange. LAWYERS Julius & Creasy, No. 41, Janadhipathi Mawatha, Colombo 1, Sri Lanka. REGISTERED OFFICE AUDITORS "Commercial House", Ernst & Young No. 21, Sir Razik Fareed Mawatha, Chartered Accountants, P.O. Box 856, No. 201, De Saram Place, Colombo 1, Sri Lanka. Colombo 10, Sri Lanka. Telephone : 2430420, 2336700 2445010-15 ,2486000, 4792000 REGISTRARS Telex :21520 COMEX CE S S P Corporate Services (Private) Limited, Facsimile : 2449889 No. 101, Inner Flower Road, SWIFT Code-Sri Lanka : CCEYLKLX Colombo 3, Sri Lanka. SWIFT Code-Bangladesh : CCEYBDDH Telephone: 2573894, 2576871 E-mail : email@combank.net Facsimile: 2573609 Website : www.combank.net E-mail: sspsec@sltnet.lk COMPANY SECRETARY Mr. R.A.P. Rajapaksha HEAD OFFICE "Commercial House", BOARD OF DIRECTORS No. 21, Sir Razik Fareed Mawatha, Mr. K.G.D.D. Dheerasinghe - Chairman P.O. Box 856, Mr. M.P. Jayawardena - Deputy Chairman Colombo 1, Sri Lanka. Mr.S. Renganathan - Managing Director/Chief Executive Officer Mr.S.C.U. Manatunge - Chief Operating Officer Mr. S. Swarnajothi Prof. A.K.W. Jayawardane ACCOUNTING YEAR Mr. K. Dharmasiri December 31 Mr. L.D. Niyangoda Ms. N.T.M.S. Cooray Mr. T.L.B. Hurulle Justice K. Sripavan