Interim Financial Statements as at 30-06-2025

Description

Rs. MN

Bank

For the Quarter ended

For the period ended

30‐Jun‐2025

30‐Jun‐2024

30‐Jun‐2025

30‐Jun‐2024

Unaudited

Unaudited

Unaudited

Unaudited

Interest Income

1,876

2,146

3,736

4,461

Interest Expenses

1,134

1,361

2,319

2,897

Net Interest Income

742

785

1,417

1,564

Fee and Commission Income

58

78

119

178

Fee and Commission Expenses

Net fee and Commission Income Net gains/(losses) from trading Net fair value gains/(losses) on:

financial assets at fair value through profit or loss financial liabilities at fair value through profit or loss

Net gains/(losses) on derecognition of financial assets:

at fair value through profit or loss at amortised cost

at fair value through other comprehensive income

Net other Operating Income

58

78

119

178

Total Operating Income

800

863

1,535

1,742

Impairment Charges

35

4

-39

43

Net Operating Income

765

859

1,574

1,699

Personnel Expenses

449

318

893

772

Depreciation and amortisation expenses

35

44

76

88

Other expenses

153

158

290

295

Operating Profit/(loss) before VAT & NBT on financial services Social security contribution

128

339

315

544

Value Added Tax (VAT) on financial services

84

96

176

191

Social Security Contribution

13

15

27

31

Nation Building Tax (NBT) on financial services

Operating profit/(loss) after VAT on financial services ,Social security contribution & NBT on financial services

Share of profits of associates and joint ventures

31

228

111

322

Profit/(loss) before tax

31

228

111

322

Income tax expenses

36

98

85

134

Profit/(loss) for the period

‐4

129

27

188

Profit attributable to:

Equity holders of the parent Non- controlling interests

-4

129

27

188

Earning per share on profit

Basic Earnings per Ordinary Share (Rs.) Diluted earnings per ordinary share (Rs.)

(0.06)

-

2.00

-

0.41

-

2.90

-

Description

Rs Mn

Bank

For the Quarter ended

For the period ended

30‐Jun‐2025

30‐Jun‐2024

30‐Jun‐2025

30‐Jun‐2024

Unaudited

Unaudited

Unaudited

Unaudited

Profit/(Loss) for the period

-4

129

27

188

Items that will be reclassified to income statement

Exchange differences on translation of foreign operations

-

-

-

-

Net gains/(losses) on cash flow hedges

-

-

-

-

Net gains/(losses) on investments in debt instruments

-

-

-

-

measured at fair value through other comprehensive income

-

-

-

-

Share of profits of associates and joint ventures

-

-

-

-

Debt instruments at fair value through other Comprehensive Income

-15

12

-20

Less: Tax expense relating to items that will be reclassified

4

-4

6

to income statement

-10

8

-14

Items that will not be reclassified to income statement

at

fair value through other comprehensive income

-

-

-

-

Change in fair value attributable to change in the Bank's own credit

-

-

-

-

loss

-

-

-

-

Re-measurement of post-employment benefit obligations

Changes in revaluation surplus

-

-

-

-

Share of profits of associates and joint ventures

-

-

-

-

Others (specify)

-

-

-

-

Less: Tax expense relating to items that will not be reclassified to

-

-

-

-

income statement

Other Comprehensive Income (OCI) for the period, net of taxes

-10

8

-14

Total comprehensive income for the period

‐4

119

35

174

Attributable to

Equity Holders

Non - Controlling Interest

-4

119

35

174

Description Rs. Mn

Bank

Current Period

Previous Period

As at 30/06/2025 (unaudited)

As at 31/12/24 (Audited)

Assets

Cash and Cash Equivalents Balance with Central Bank Placements with banks

Derivative financial instruments

Financial assets recognized through Profit or Loss

• measured at fair value

• designated at fair value Financial assets at amortised cost

• loans and advances

• debt and other instruments

Financial assets measured at fair value through other comprehensive income Investment in subsidiaries

Investments in associates and joint ventures

Property, plant and equipment Right of uese assets Investment properties Goodwill and intangible assets Deferred tax assets

Other assets

322

325

4,471

36

38,771

40,130

17,540

17,698

4,739

190

187

228

262

1,284

1,284

47

66

524

505

351

210

Total Assets

63,727

65,443

Liabilities

Due to banks

Derivative financial instruments

Financial liabilities recognized through profit or loss

• measured at fair value

• designated at fair value Financial liabilities at amortised cost

• due to depositors

• due to debt securities holders

• due to other borrowers Debt securities issued

Lease Liability

Retirement benefit obligations Current tax liabilities Deferred tax liabilities

Other provisions Other liabilities

Due to subsidiaries

365

566

50,518

52,005

1,555

1,615

1,512

1,427

268

303

1,050

1,026

22

151

392

355

Total Liabilities

55,682

57,449

Capital

AT ‐ 1 Capital

Perpetual Bond

297

281

Total AT ‐ 1 Capital

297

281

Equity Capital

Stated capital/Assigned capital

962

962

Statutory reserve fund

354

354

OCI reserve

-94

-103

Retained earnings

5,893

5,866

Other reserves

634

634

Total shareholders' equity

7,748

7,713

Non-controlling Interest

-

-

Total Equity Capital and AT‐1 Capital

8,045

7,994

Total equity and liabilities

63,727

65,443

Contingent liabilities and commitments

31

31

Net Assets value per Ordinary Share (Rs)

119.74

119.19

Memorandum information

Number of employees

480

494

Number of Branches

39

39

Bank

Description

Rs Mn

Stated capital/ Assigned capital

Reserves

Total

Non‐Controlling Interest

Total Equity

Ordinary Voting

Shares

Ordinary non‐Voting Shares

Assigned capital

Statutory Reserve Fund

OCI

Reserve

Revaluation Reserves

Retained Earnings

Other Reserves

Balance as at 01/01/2024

Total comprehensive income for the period

Prior Year Adjustments - Tax

962

-

-

-

-

-

358

-

-11

-

-

-

6,178

641

-

8,128

-

-

8,128

Profit/(Loss) for the year (net of tax) Other comprehensive income (net of tax)

-

-

-

-

-

-

-

-

-

-14

-

-

188

-

-

-

188

-14

-

-

188

-14

Total comprehensive income for

the period

962

358

‐25

6,366

641

8,302

8,302

Transactions with equity holders, recognised

directly in equity

Share issue/increase of Assigned Capital

-

-

-

-

-

-

-

-

-

-

-

Bonus issue

-

-

-

-

-

-

-

-

-

-

-

Right issue

-

-

-

-

-

-

-

-

-

-

-

Transfer to Reserves during the period

-

-

-

-

-

-

-

-

Dividends to equity holders

-

-

-

-

-

-

-

-

-

-

-

Profit transferred to head office

-

-

-

-

-

-

-

-

-

-

-

Gain/(loss) on revaluation of Property Plant and

Equipment

-

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

-

Total transaction with equity holders

-

-

-

Balance as at 30/06/2024

962

‐

‐

358

‐25

‐

6,366

641

8,302

‐

8,302

Bank

Description

Rs. Mn

Stated capital/ Assigned capital

Reserves

Total

Non‐Controlling

Interest

Total Equity

Ordinary Voting

Shares

Ordinary non‐Voting Shares

Assigned capital

Statutory Reserve Fund

OCI

Reserve

Revaluation Reserves

Retained Earnings

Other Reserves

Balance as at 01/01/2025

962

-

-

354

-103

-

5,866

634

7,713

-

7,713

Total comprehensive income for the period

Profit/(Loss) for the year (net of tax)

-

-

-

-

-8

-

27

-

27

-

27

Other comprehensive income (net of tax)

-

-

-

-

-

-

8

-

8

Total comprehensive income for

the period

962

-

-

354

-94

-

5,893

634

7,748

-

7,748

Transactions with equity holders, recognised

directly in equity

Share issue/increase of Assigned Capital

-

-

-

-

-

-

-

-

-

-

-

Share options exercised

Bonus issue

-

-

-

-

-

-

-

-

-

-

-

Right issue

-

-

-

-

-

-

-

-

-

-

-

Transfer to reserves during the period

-

-

-

-

-

-

-

-

Dividends to equity holders

-

-

-

-

-

-

-

-

-

-

-

Profit transferred to head office

-

-

-

-

-

-

-

-

-

-

-

Gain/(loss) on revaluation of Property Plant and

-

-

-

-

-

‐

-

-

-

-

-

Equipment (if cost method is adopted)

Others

-

-

-

-

-

-

-

-

-

-

-

Total transaction with equity holders

Balance as at 30/06/2025

962

‐

‐

354

‐94

‐

5,893

634

7,748

‐

7,748

Description

Rs , Mn

Bank

Current Period

Previous Period

30.06.2025

30.06.2024

Unaudited

Unaudited

Cash Flows From Operating Activities

Interest Receipts

3,227

3,530

Interest payments

-1,750

-2,994

Net commission Receipts

91

139

Trading income

Payments to Employee

-829

-757

VAT, CROP, SSCL payments & NBT on financial services

-269

-251

Receipt from other operating activities

30

28

Payments on other operating activities

-298

-331

Operating profit before changes in operating assets & liabilities

203

‐636

(Increase)/Decrease In Operating Assets :

Balances with Central Bank of Sri Lanka

Financial Assets at amotised cost - Loans and Advances

834

1,080

Other Assets

-271

4

Increase / ( Decrease ) In Operating Liabilities

Financial Liabilities at amotised cost - due to Depositors

-1,932

-1,373

Financial Liabilities at amotised cost - due to Debt Security Holders

Financial Liabilities at amotised cost - due to Other Borrowers

-386

-377

Other Liabilities

36

9

Net cash generated from operating activities before income tax

‐1,515

‐1,293

Income Tax Paid

-39

-550

Net cash (used in) / from operating activities

‐1,554

‐1,842

Cash Flows From Investing Activities

Purchase of property, plant and equipment

-20

-15

Proceeds from the sale of property, plant and equipment

Purchase of financial investments

Proceeds from the sale and maturity of financial investments

1,572

1,915

Net purchase of intangible assets

Net cash flow from acquisition of investments in subsidiariess, joint

ventures and associates

Net cash flow from disposal of subsidiaries, associates and joint

ventures

Dividends received from investments in subsidiareis and associates

Other

Net cash (used in) / from investing activities

1,552

1,900

Cash Flows From Financing Activities

Net proceeds from the issue of Ordinary share capital

-

-

Net proceeds from the issue of Other equity instruments

-

-

Net proceeds from the issue of Subordinated debt

-

-

Repayment of Subordinated debt

-

-

Interest paid on subordinated debts

-

-

Dividends paid to non - controlling Interest

-

-

Dividends paid to shareholders of the parent company

-

-

Dividends paid to holders of other equity instruments

-

-

Others

-

-

Net cash (used in) / from financing activities

Net increase/(decrease) in cash & cash Equivalents

-2

57

Cash & cash equivalents at beginning of the period

325

237

Exchange difference in respect of cash &cash equivalents

Cash and cash equivalents at the end of the period

322

295

a. Bank ‐ Current period

In Rupees Millions

AC

FVPL

FVOCI

Total

ASSETS

Cash and cash equivalents

322

-

-

322

Balances with central banks

-

-

-

-

Placements with banks

4,471

-

-

4,471

Derivative financial instruments

-

-

-

Loans and advances

38,771

-

-

38,771

Debt instruments

17,540

-

17,540

Equity instruments

-

-

-

-

Others

-

-

2,624

Total financial assets

61,104

63,727

In Rupees Millions

AC

FVPL

Total

LIABILITIES

Due to banks

365

-

365

Derivative financial instruments

-

-

-

Financial liabilities

- due to depositors

50,518

-

50,518

- due to debt security holders

1,512

-

1,512

- due to other borrowers

1,852

-

1,852

Total financial liabilities

54,247

54,247

Other Liabilities

-

-

1,732

Equity

-

-

7,748

Total financial liabilities

54,247

-

63,727

b. Bank ‐ Previous period

In Rupees Millions

AC

FVPL

FVOCI

Total

ASSETS

Cash and cash equivalents

325

-

-

325

Balances with central banks

-

-

-

-

Placements with banks

36

-

-

36

Derivative financial instruments

-

-

-

-

Loans and advances

40,130

-

-

40,130

Debt instruments

17,698

-

4,739

22,437

Equity instruments

-

-

-

-

Others

-

-

-

2,515

Total financial assets

58,189

4,739

65,443

In rupees Millions

AC

FVPL

Total

LIABILITIES

Due to banks

566

-

566

Derivative financial instruments

-

-

-

Financial liabilities

-

-

-

- due to depositors

52,005

-

52,005

- due to debt security holders

1,427

-

1,427

- due to other borrowers

1,897

-

1,897

Total financial liabilities

55,896

‐

55,896

Others

-

1,835

Equity

7,713

Total liabilities

55,896

‐

65,443

In Rupees Millions

Bank

Current Period

Previous Period

30/06/2025

31/12/2024

Product‐wise Gross loans & advances

By product - Domestic currency

Overdrafts

-

-

Term loans

39,430

41,190

Lease rentals receivable

870

598

Credit cards

-

-

Pawning

1,496

1,439

Other Loans

-

-

Sub Total

41,796

43,226

By Products ‐ Foreign Currency

Overdrafts

-

-

Term Loans

-

-

Guarantees

-

-

Bonds

-

-

Other Loans

-

-

Sub Total

-

-

Total

41,796

43,226

Product ‐Wise Commitments and Contingencies

By Product‐Domestic Currency

Guarantees

11

13

Bonds

-

-

Undrawn credit lines

20

18

Other commitments

-

-

Other contingencies

-

-

Sub Total

31

31

By product - Foreign currency

Guarantees

-

-

Bonds

-

-

Undrawn credit lines

-

-

Other commitments

-

-

Other contingencies

-

-

Sub Total

‐

‐

Total

31

31

Stage‐wise impairment on loans & advances, commitments

and contingencies

Gross loans and advances, commitments and

contingencies

41,827

43,257

Less: Accumulated impairment under stage 1

249

289

Accumulated impairment under stage 2

175

211

Accumulated impairment under stage 3

2,064

2,027

IIS

536

568

Total Impairment

3,025

3,096

Net value of loans and advances, commitments and

38,802

40,161

contingencies

Description

Rs . Mn

Bank

Current Period

Previous

Period

30/06/2025

31/12/2024

Audited

Movement of impairment during the period

Under Stage 1

Opening balance 01-01

289

285

Charge/(Write back) to income statement

-39

4

Write-off during the year

Other movements

Closing balance

249

289

Under Stage 2

Opening balance 01-01

211

280

Charge/(Write back) to income statement

-36

-68

Write-off during the year

Other movements

Closing balance

175

211

Under Stage 3

Opening balance 01-01

2,027

1,686

Charge/(Write back) to income statement

37

341

Write-off during the year

Other movements

Closing balance

2,064

2,027

Interest in Suspense

536

568

Total impairment

3,025

3,096

Description

Rs. Mn

Bank

Current Period

Previous

Period

30.06.2025

31.12.2024

Audited

By Product ‐ Domestic Currency

Demand deposit(Current Accounts)

-

-

Savings deposits

9,458

8,840

Fixed deposits

41,059

43,165

Others

-

-

Sub Total

50,518

52,005

By Product ‐ Foreign Currency

Demand deposits

-

-

Savings deposits

-

-

Fixed deposits

-

-

Others

-

-

Sub Total

‐

‐

Total

50,518

52,005

Debenture Type

Interest rate %

Gov. security Interest rate %

Debenture - 10Years- 2015(Fixed Annu. 2025)

30.06.2025

31.12.2024

30.06.2025

31.12.2024

12.00

12.00

7.81

9.30

Item

Current Period

Previous Period

30/06/2025

31/12/2024

Regulatory Capital Adequacy (LKR in Millions)

Common Equity Tire 1

7,095

7,142

Tier 1 Capital

7,345

7,392

Total Regulatory Capital

7,592

7,609

Regulatory Capital Ratios (%)

Common Equity Tire 1 Capital (%)( Minimum Requirement , 7.0%)

28.66%

32.53%

Tier 1 Capital Ratio(%) ( Minimum Requirement, 8.5%)

29.67%

33.66%

Total Capital Ratios (%) ( Minimum Requirement, 12.5%)

30.67%

34.65%

Basel III Leverage Ratio (%) (Minimum Requirment 3%)

10.17%

11.90%

Regulatory Liquidity Requirement

Liquidity Coverage Ratio (%) (Minimum Requirement -100% )

-Rupee (%)

-All Currency (%)

Net Stable Funding Ratio(%) - (Minimum Requirement - 100% )

192%

223%

-

-

102%

128%

Assets Quality (Quality of Loan Portfolio)

Impaired Loans (Stage 3) to Total Loans, Ratio (%) *

50.38%

45.92%

Impairment (Stage 3) to Stage 3 Loans, Ratio (%) *

9.55%

9.91%

Impaired Loans (Stage 3) Ratio % - excluding EPF loans *

26.57%

22.98%

Impairment (Stage 3) to Stage 3 Loans Ratio (%)-excluding

EPF loans *

22.83%

23.49%

Income & Profitability

Net Interest Margin (%)

4.39%

4.18%

Return on Assets (before Tax) (%)

0.35%

0.10%

Return on Equity (%)

0.69%

-2.43%

Cost to Income Ratio (%)

82.02%

78.03%

Debt/Equity (Times)

0.48

0.50

Interest Cover (Times)

3.37

3.62

Interest Yeild

12.11%

12.80%

Memorandum Information

Credit Rating

BB+(lka) (Stable)

BB+(lka) (Stable)

Number of Employees

480

494

Number of Branches

39

39

Financial Indicators

Share Price(Rs)

Debenture

price(Rs)

Issued 2015

2nd Quarter 30.06.2025

As at 31.12.2024

2nd Quarter 30.06.2025

Market Price of shares/Debentures during the Quarter Highest Price

Lowest Price

Last Trading Price

48.00

38.30

44.50

49.20

31.60

48.60

N/T * N/T * N/T *

Yeild to Maturity of Last Trade Done(% p. a)

Quarter ended 30 June

2025

2024

10 Years fixed Annual (12.00 p.a)

-

-