My Report
Integrated Report
Performance Analysis
Decade at a glance
Managing Director/Chief Executive Officer's and Chief Financial Officer's Statement of Responsibility
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| Statement of financial position – Bank | SLFRSs |
SLFRSs |
LKASs |
|||||||||
| As at December 31, Rs. Mn. |
CAGR* (%) |
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Assets | ||||||||||||
| Cash and cash equivalents | 86,848 | 157,819 | 149,394 | 68,078 | 50,251 | 52,535 | 39,534 | 33,225 | 30,194 | 20,044 | ||
| Balances with Central Banks | 45,702 | 52,818 | 66,493 | 52,898 | 110,971 | 39,461 | 54,385 | 44,801 | 43,873 | 28,221 | ||
| Placements with banks | 99,300 | 81,345 | 95,900 | 11,585 | 15,939 | 24,527 | 19,899 | 17,633 | 11,718 | 17,194 | ||
| Securities purchased under resale agreements | 28,656 | 31,149 | 1,517 | 3,000 | – | 13,148 | 9,514 | – | – | 8,002 | ||
| Derivative financial assets | 4,264 | 7,226 | 8,345 | 3,245 | 2,637 | 1,831 | 7,910 | 2,335 | 1,053 | 4,118 | ||
| Other financial instruments – Held for trading | – | – | – | – | – | – | – | 4,411 | 4,988 | 7,656 | ||
| Financial assets recognised through profit or loss – Measured at fair value | 91,677 | 29,450 | 24,873 | 23,436 | 35,189 | 21,468 | 5,520 | – | – | – | ||
| Loans and receivables to banks | 13.05 |  |
– | – | – | – | – | – | – | 641 | 624 | 601 |
| Financial assets at amortised cost – Loans and advances to banks | – | – | – | – | 780 | 758 | 763 | – | – | – | ||
| Loans and receivables to other customers | – | – | – | – | – | – | – | 737,447 | 616,018 | 508,115 | ||
| Financial assets at amortised cost – Loans and advances to other customers | 1,384,525 | 1,176,360 | 1,130,443 | 1,014,619 | 896,845 | 884,646 | 861,100 | – | – | – | ||
| Financial investments – Held to maturity | – | – | – | – | – | – | – | 63,563 | 60,981 | – | ||
| Financial investments – Loans and receivables | – | – | – | – | – | – | – | 48,712 | 51,824 | 57,724 | ||
| Financial assets at amortised cost – Debt and other financial instruments | 667,710 | 649,740 | 725,935 | 369,418 | 292,728 | 101,145 | 83,855 | – | – | – | ||
| Financial investments – Available for sale | – | – | – | – | – | – | – | 154,714 | 160,023 | 204,244 | ||
| Financial assets measured at fair value through other comprehensive income | 301,584 | 287,023 | 117,056 | 335,463 | 278,461 | 197,568 | 176,507 | – | – | – | ||
| Total financial assets | 2,710,266 | 2,472,930 | 2,319,956 | 1,881,742 | 1,683,801 | 1,337,087 | 1,258,987 | 1,107,482 | 981,296 | 855,919 | ||
| Investments in subsidiaries | 5,808 | 5,808 | 5,808 | 5,808 | 5,808 | 5,011 | 4,264 | 3,066 | 2,435 | 1,237 | ||
| Investment in associate | 44 | 44 | 44 | 44 | 44 | 44 | 44 | 44 | 44 | 44 | ||
| Property, plant & equipment and right-of-use assets | 27,601 | 26,258 | 25,425 | 23,075 | 23,212 | 20,507 | 15,301 | 14,635 | 10,308 | 9,969 | ||
| Intangible assets | 4,221 | 3,737 | 3,563 | 1,725 | 1,233 | 1,080 | 906 | 777 | 641 | 466 | ||
| Leasehold property | – | – | – | – | – | – | 72 | 73 | 74 | 74 | ||
| Deferred tax assets | 12,086 | 34,077 | 30,301 | 9,793 | 2,500 | 294 | – | – | 964 | – | ||
| Other assets | 29,754 | 37,474 | 40,699 | 27,024 | 19,620 | 23,323 | 23,911 | 17,297 | 16,439 | 12,096 | ||
| Total assets | 13.37 | 2,789,780 | 2,580,328 | 2,425,798 | 1,949,213 | 1,736,218 | 1,387,346 | 1,303,485 | 1,143,374 | 1,012,201 | 879,805 | |
| Liabilities | ||||||||||||
| Due to banks | 21,307 | 47,274 | 65,130 | 73,777 | 87,451 | 51,506 | 50,101 | 57,121 | 67,609 | 30,319 | ||
| Derivative financial liabilities | 837 | 2,319 | 2,881 | 2,092 | 1,501 | 1,495 | 8,022 | 3,678 | 1,515 | 1,891 | ||
| Securities sold under repurchase agreements | 112,470 | 111,199 | 97,726 | 151,912 | 91,438 | 51,220 | 49,104 | 49,677 | 69,867 | 112,385 | ||
| Due to other customers/deposits from customers | 15.50 | |
– | – | – | – | – | – | – | 850,128 | 739,563 | 624,102 |
| Financial liabilities at amortised cost – Due to depositors | 2,236,567 | 2,085,046 | 1,914,359 | 1,443,093 | 1,265,966 | 1,053,308 | 983,037 | - | – | – | ||
| Other borrowings | – | – | – | – | – | – | – | 23,786 | 9,270 | 9,986 | ||
| Financial liabilities at amortised cost – Other borrowings | 14,273 | 12,756 | 16,150 | 32,587 | 54,556 | 23,249 | 25,362 | – | – | – | ||
| Current tax liabilities | 13,146 | 14,952 | 24,475 | 9,294 | 6,778 | 4,968 | 6,566 | 4,144 | 3,441 | 3,002 | ||
| Deferred tax liabilities | – | – | – | – | – | – | 646 | 3,275 | – | 231 | ||
| Other provisions | – | – | – | – | – | – | – | – | 2 | 2 | ||
| Other liabilities | 58,064 | 55,050 | 39,861 | 33,211 | 33,038 | 30,497 | 24,208 | 19,225 | 17,710 | 15,547 | ||
| Due to subsidiaries | 146 | 317 | 115 | 49 | 97 | 54 | 41 | 75 | 20 | 26 | ||
| Subordinated liabilities | 57,708 | 36,483 | 61,401 | 38,303 | 38,247 | 37,887 | 37,992 | 25,166 | 24,850 | 11,973 | ||
| Total liabilities | 2,514,518 | 2,365,397 | 2,222,099 | 1,784,319 | 1,579,072 | 1,254,184 | 1,185,079 | 1,036,275 | 933,847 | 809,464 | ||
| Equity | ||||||||||||
| Stated capital | 88,017 | 62,948 | 58,150 | 54,567 | 52,188 | 40,917 | 39,148 | 37,144 | 24,978 | 23,255 | ||
| Statutory reserves | 15,080 | 12,376 | 11,353 | 10,204 | 9,024 | 8,205 | 7,354 | 6,477 | 5,648 | 4,922 | ||
| Retained earnings | 15,331 | 8,558 | 5,592 | 9,028 | 7,596 | 5,144 | 5,063 | 4,987 | 4,464 | 4,389 | ||
| Other reserves | 156,834 | 131,049 | 128,604 | 91,094 | 88,338 | 78,896 | 66,841 | 58,491 | 43,264 | 37,775 | ||
| Total liabilities and equity | 13.37 | 2,789,780 | 2,580,328 | 2,425,798 | 1,949,213 | 1,736,218 | 1,387,346 | 1,303,485 | 1,143,374 | 1,012,201 | 879,805 | |
| Contingent liabilities and commitments | 743,965 | 668,876 | 549,422 | 682,400 | 728,712 | 579,999 | 658,722 | 564,795 | 498,305 | 521,232 | ||
(*) CAGR – Compound Annual Growth Rate
| Summarised income statement – Bank | SLFRSs |
SLFRSs |
LKASs |
|||||||||
| For the year ended December 31, Rs. Mn. |
CAGR* (%) |
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Operating results | ||||||||||||
| Gross income | 13.90 | 267,332 | 335,770 | 275,444 | 160,886 | 149,711 | 148,706 | 138,049 | 114,357 | 93,143 | 77,868 | |
| Interest income | 269,596 | 292,618 | 218,327 | 130,443 | 122,330 | 127,780 | 117,466 | 103,034 | 80,738 | 66,030 | ||
| Interest expense | (155,038) | (209,515) | (136,583) | (65,832) | (72,759) | (80,571) | (72,524) | (64,011) | (47,915) | (35,685) | ||
| Foreign exchange profit | 2,990 | 4,908 | 31,120 | 10,589 | 8,338 | 6,726 | 7,900 | 588 | 2,326 | 2,877 | ||
| Net Commission and other income (**) | (15,972) | 30,098 | 20,024 | 16,195 | 17,031 | 12,082 | 10,845 | 9,169 | 8,951 | 8,059 | ||
| Operating expenses, net impairment and taxes on financial services (***) | (6,042) | (86,229) | (110,290) | (59,394) | (51,429) | (43,678) | (38,096) | (25,597) | (24,049) | (24,138) | ||
| Profit before tax | 19.76 | 95,534 | 31,880 | 22,598 | 32,001 | 23,511 | 22,339 | 25,591 | 23,183 | 20,051 | 17,143 | |
| Income tax expense | (41,461) | (11,419) | 372 | (8,395) | (7,138) | (5,314) | (8,047) | (6,602) | (5,539) | (5,240) | ||
| Profit for the year | 17.07 | 54,073 | 20,461 | 22,970 | 23,606 | 16,373 | 17,025 | 17,544 | 16,581 | 14,512 | 11,903 | |
| Ratios | ||||||||||||
| Return on average shareholders’ funds (%) | 22.06 | 9.78 | 12.46 | 14.66 | 11.28 | 13.54 | 15.56 | 17.88 | 19.52 | 16.90 | ||
| Income growth (%) (**) | (20.38) | 21.90 | 71.20 | 7.46 | 0.68 | 7.72 | 20.72 | 24.10 | 19.62 | 7.03 | ||
| Return on average assets (%) | 2.01 | 0.82 | 1.05 | 1.28 | 1.05 | 1.27 | 1.43 | 1.54 | 1.53 | 1.42 | ||
| Ordinary share dividend cover (times) | 3.53 | 2.40 | 4.12 | 2.64 | 2.34 | 2.55 | 2.67 | 2.62 | 2.25 | 2.09 | ||
| Advances to deposits and refinance (%) | 66.06 | 60.33 | 63.30 | 73.54 | 72.96 | 86.74 | 86.96 | 86.07 | 82.69 | 80.84 | ||
| Property, plant & equipment and intangible assets to shareholders’ funds (%) | 11.56 | 13.96 | 14.23 | 15.04 | 15.56 | 16.21 | 13.75 | 14.46 | 14.07 | 14.94 | ||
| Total assets to shareholders’ funds (times) | 10.14 | 12.01 | 11.91 | 11.82 | 11.05 | 10.42 | 11.01 | 10.68 | 12.92 | 12.51 | ||
| Capital funds to liabilities including contingent liabilities (%) | 8.45 | 7.08 | 7.35 | 6.68 | 6.81 | 7.26 | 6.42 | 6.69 | 5.47 | 5.29 | ||
| Cost to income ratio (including taxes on financial services) (%) (****) | 41.89 | 40.31 | 29.22 | 37.97 | 39.96 | 49.41 | 46.35 | 51.08 | 51.06 | 48.92 | ||
| Impaired Loans (Stage 3) Ratio (%) | 2.76 | 5.85 | 5.25 | 3.85 | 6.78 | N/A | N/A | N/A | N/A | N/A | ||
| Impairment (Stage 3) to Stage 3 Loans Ratio (%) | 64.61 | 43.22 | 39.60 | 42.76 | 30.87 | N/A | N/A | N/A | N/A | N/A | ||
| Capital adequacy (%) (under Basel II ) Tier I | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 11.56 | 11.60 | ||
| Tier I & II | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 15.89 | 14.26 | ||
| Capital adequacy (%) (under Basel III) | ||||||||||||
| Common equity Tier I capital ratio | 14.23 | 11.44 | 11.39 | 11.92 | 13.22 | 12.30 | 11.34 | 12.11 | N/A | N/A | ||
| Tier I capital ratio | 14.23 | 11.44 | 11.39 | 11.92 | 13.22 | 12.30 | 11.34 | 12.11 | N/A | N/A | ||
| Total capital ratio | 18.14 | 15.15 | 14.66 | 15.65 | 16.82 | 16.15 | 15.60 | 15.75 | N/A | N/A | ||
| Share information | ||||||||||||
| Market value of a voting ordinary share (Rs.) | 144.75 | 95.50 | 50.20 | 79.30 | 80.90 | 95.00 | 115.00 | 135.80 | 145.00 | 140.20 | ||
| Earnings per share (Rs.) | 38 | 15 | 17 | 19 | 15 | 17 | 17 | 17 | 16 | 13 | ||
| Dividend per share (Rs.) | 9.50 | 6.50 | 4.50 | 7.50 | 6.50 | 6.50 | 6.50 | 6.50 | 6.50 | 6.50 | ||
| Price earnings ratio (times) | 4 | 6 | 3 | 4 | 5 | 5 | 7 | 8 | 9 | 10 | ||
| Net assets value per share (Rs.) | 171 | 164 | 164 | 138 | 135 | 130 | 117 | 108 | 88 | 80 | ||
| Earnings yield (%) | 26 | 16 | 35 | 24 | 19 | 17 | 15 | 13 | 11 | 10 | ||
| Gross dividends (Rs. Bn.) to ordinary shareholders | 15.30 | 8.54 | 5.58 | 8.96 | 7.59 | 6.68 | 6.57 | 6.48 | 5.77 | 5.70 | ||
| Dividend payout ratio (%) – Cash | 22 | 29 | – | 22 | 32 | 27 | 26 | 26 | 28 | 33 | ||
| Total dividend payout ratio (%) | 28 | 42 | 24 | 38 | 46 | 39 | 37 | 38 | 40 | 48 | ||
| Other information | ||||||||||||
| Number of employees | 5,461 | 5,201 | 5,121 | 5,072 | 5,057 | 5,062 | 5,027 | 4,982 | 4,987 | 4,951 | ||
| Number of delivery points – Sri Lanka | 1.28 | |
272 | 271 | 269 | 268 | 268 | 268 | 266 | 261 | 255 | 246 |
| Number of delivery points – Bangladesh | 20 | 20 | 20 | 19 | 19 | 19 | 19 | 19 | 19 | 18 | ||
| Number of automated teller machines | 4.54 | 974 | 948 | 934 | 921 | 906 | 885 | 850 | 775 | 677 | 640 | |
(*) CAGR – Compound Annual Growth Rate
(**) Includes the net derecognition loss on restructuring of SLISBs during 2024 as detailed in Note 16.1 on page 334
(***) Includes the net impairment reversals on restructuring of SLISBs during 2024 as detailed in Note 16.1 on page 334
(****) After discounting the net derecognition loss on restructuring of SLISBs and related taxes on financial services during 2024 as detailed in Note 16.1 on page 334