CITIBANK, N. A. COLOMBO, SRI LANKA Rated AAA (lka) by Fitch Ratings Lanka Ltd.

Transcription

1 CITIBANK, N. A. COLOMBO, SRI LANKA Rated AAA (lka) by Fitch Ratings Lanka Ltd. INCOME STATEMENT STATEMENT OF CASH FLOWS 01/01/15 to 31/12/15 01/01/14 to 31/12/14 Interest income 1,765,773 1,877,305 Interest expenses 418, ,254 Net interest income 1,347,440 1,322,051 Fee and commission income 575, ,915 Fee and commission expenses 74,039 59,255 Net fee and commission income 501, ,660 Net Interest, fee and commission income 1,848,721 1,813,711 Net gain/(loss) from trading 754, ,006 Net gain/(loss) from financial investments - - Other operating income (net) 503, ,917 Total operating income 3,107,069 2,634,634 Less: Impairment Charge/(reversal) for loans and other losses 18,844 (15,486) Net operating income 3,088,225 2,650,120 Less: Operating Expenses Personnel expenses 502, ,231 Depreciation 28,438 28,353 Other expenses 675, ,780 Operating profit/(loss) before value added tax (VAT) 1,881,561 1,432,756 Less: Value added tax (VAT) on financial services, and Nation Building Tax 236, ,879 Operating profit/(loss) after value added tax (VAT) 1,644,950 1,307,877 Share of profits of associates and joint ventures - - Profit/(loss) before tax 1,644,950 1,307,877 Less: Tax expenses 519, ,715 Profit/(loss) for the year 1,125, ,162 Profit attributable to: Owners of the parent 1,125, ,162 Non-controlling interests - - 1,125, ,162 Earnings per share on profit - - CASH FLOWS FROM OPERATING ACTIVITIES 31/12/15 31/12/14 Interest & commision receipts 1,809,935 2,517,297 Interest & commision payments (413,656 ) (624,002 ) Receipts from other Operating Activities 1,779, ,300 Cash Payment to Employees. (540,161 ) (483,912 ) Other Overhead Expenses (812,202 ) (801,659 ) Operating Profit before changes in Operating Assets & Liabilities 1,823,807 1,146,024 (Increase)/Decrease in Operating Assets Loans and receivables to other customers and banks (545,038 ) (188,074 ) Deposits held for regulatory purposes 40,469 (99,243 ) Placements with Bank (1,450,043 ) (4,395,749 ) Other Assets (225,811 ) 14,658 Increase/(Decrease) in Operating Liabilities (2,180,423 ) (4,668,409 ) Deposits from Customers and Banks (209,569 ) 5,862,571 Other Borrowings 321,244 (1,096,972 ) Other Liabilities 5,772 27,951 Net Cash Generated from/(used in) Operating Activities before taxes. (239,169 ) 1,271,166 Income Tax Paid (243,870 ) (540,101 ) Net Cash Generated from/(used in) Operating Activities (483,039 ) 731,065 CASH FLOWS FROM INVESTING ACTIVITIES Net proceeds from Sale, Maturity, and Purchases of Financial Investments 1,674, ,541 Purchase of Property, Plant & Equipment (8,521 ) (41,799) Proceeds from Sale of Property, Plant & Equipment ,178 Net Cash used in Investing Activities 1,667, ,920 CASH FLOWS FROM FINANCING ACTIVITIES Effect of Currency Translation (142,993 ) 23,296 Profit remittence to Head Office (960,269 ) - Net Cash Generated from/(used in) Financing Activities (1,103,262 ) 23,296 STATEMENT OF COMPREHENSIVE INCOME Net Increase/(Decrease) in Cash & Cash Equivalents 80,764 1,589,281 Cash & Cash Equivalents at the Beginning of the Year 3,392,735 1,803,454 Cash & Cash Equivalents at the End of the Year 3,473,498 3,392,735 01/01/15 to 31/12/15 01/01/14 to 31/12/14 Profit/(loss) for the year 1,125, ,162 Reconciliation of Cash & Cash Equivalents Cash in hand 475, ,685 Balances with banks 2,955,851 2,830,114 Money at call and short notice 41, ,936 3,473,498 3,392,735 Other comprehensive income, net of tax Net actuarial gains/(losses) on defined benefit plans - (27,578 ) Net change in fair value on available-for-sale financial assets (142,993 ) 55,153 Effects of Currency Transalation 210,233 23,296 Net amount transferd to profit or loss on available-for-sale financial assets - - Other comprehensive income for the year, net of taxes 67,240 50,871 Total comprehensive income for the year 1,192,704 1,025,033 _ SUPPLEMENTARY INFORMATION CITIGROUP Attributable to: Owners of the parent 1,192,704 1,025,033 Non-controlling interests - - (In millions of dollars, except per share amounts and as otherwise noted) Twelve Months 2015 Twelve Months 2014 STATEMENT OF FINANCIAL POSITION Total Revenues, Net of Interest Expense $ 76,354 $ 77,219 Provisions for Credit Losses and for Benefits and Claims $ 7,913 $ 7,467 Income from Continuing Operations before Income Taxes $ 24,826 $ 14,701 Citigroup's Net Income $ 17,242 $ 7,310 Diluted Earnings Per Share Income from Continuing Operations $ 5.42 $ 2.20 Citigroup's Net Income $ 5.40 $ 2.20 Shares (in millions) Average Basic 3, ,031.6 Adjusted Diluted 3, ,037.0 Assets Cash and cash equivalents 3,473,498 3,392,735 Balances with central banks 473, ,027 Placements with banks 8,471,303 7,021,260 Derivative financial instruments 841, ,739 Other financial assets held-for-trading 4,391,523 6,287,009 Loans and receivables to banks 1,500,805 3,011,900 Loans and receivables to other customers 10,204,800 8,166,815 Financial investments Available-for-sale 4,794,022 5,140,248 Property, plant and equipment 156,806 82,526 Deferred tax assets 20,877 20,877 Other assets 730, ,618 Total assets 35,059,123 34,282,754 Liabilities Due to banks - 1,104,726 Derivative financial instruments 619, ,594 Due to other customers 19,176,524 19,386,093 Other Borrowings 3,187,922 2,163,165 Current tax liabilities 755, ,345 Other liabilities 711, ,372 Total liabilities 24,451,229 23,907,295 Performance Metrics 4Q Q 2014 Return on Average Common Equity 5.9% 0.4% Regulatory Capital Ratios Common Equiy Tier 1 Capital Ratio 12.0% 10.57% Tier 1 Capital Ratio 13.4% 11.45% Total Capital Ratio 15.2% 12.80% (2) (3) Supplementary Leverage Ratio 7.1% 5.94% At December 31 (in billions of dollars, except Book Value Per Share) Total assets $ 1,731.2 $ 1,842.2 (4) Total deposits Citigroup's Stockholders' equity Book Value Per Share (5) Tangible book value per share Equity Stated capital/assigned capital 1,524,250 1,524,250 Statutory reserve fund 485, ,766 Retained earnings 8,138,511 7,763,083 Other reserves 459, ,360 Total equity 10,607,894 10,375,459 Total equity and liabilities 35,059,123 34,282,754 Contingent liabilities and commitments 14,048,853 13,954,143 Memorandum information Number of emoloyees Number of branches 1 1 (1) Citigroup's risk-based capital ratios, which reflect full implementation of the U.S. Basel III rules, are non-gaap financial measure. These ratios are calculated under the Basel III Advanced Approaches framework. (2) December 31, 2015 ratios are preliminary. (3) Citigroup's Supplementary Leverage Ratio (SLR), which reflects full implementation of U.S. Basel III rules, is a non-gaap financial measure. (4) Beginning December 31, 2014, approximately $21 billion of Deposits (and corresponding assets) were reclassified to held-for-sale within Other liabilities and Other assets, respectively, as a result of Citigroup's entry into an agreement in December 2014 to sell its Japan retail banking business, which was reported in Citi Holdings. The sale was completed on November 1, (5) Tangible book value per share is a non-gaap financial measure. Supplementary Citigroup information has been extracted from interim financials available on STATEMENT OF CHANGES IN EQUITY AND RESERVES Stated capital/assigned capital Reserves Ordinary Voting Shares Ordinary Non-voting Shares Assigned Capital Statutory Reserve Fund Investment Fund Account Exchange Equallization Account Available for Sale Reserve Exchange Equalization Reserve Retained Earnings Total Non-Controlling Interest Total Equity Balance as at 01/01/15 (Opening balance) - - 1,524, ,766-5, , ,045 7,763,083 10,375,459-10,375,459 Total comprehensive income for the year Profit/(loss) for the year ,125,464 1,125,464-1,125,464 Other comprehensive income (142,993 ) - 210,233 67,240-67,240 Total comprehensive income for the year (142,993 ) - 1,335,697 1,192,704-1,192,704 Transactions with equity holders, recognised directly in equity Profit Transferred to head office (960,269 ) (960,269) - (960,269) Transfers to reserves during the period Transfers From reserves during the period Total transactions with equity holders (960,269 ) (960,269) - (960,269) Balance as at 31/12/15 (Closing balance) - - 1,524, ,766-5,170 (33,848 ) 488,045 8,138,511 10,607,894-10,607,894

2 CITIBANK, N. A. COLOMBO, SRI LANKA Rated AAA (lka) by Fitch Ratings Lanka Ltd. ANALYSIS OF FINANCIAL INSTRUMENTS BY MEASUREMENT BASIS NOTES TO THE FINANCIAL STATEMENT Current Period - 31st December 2015 HFT Designated HTM Amortised AFS Hedging Total at fair value cost ASSETS Cash and cash equivalents ,473, ,473,498 Balances with central banks , ,558 Placements with banks ,471, ,471,303 Derivative financial instruments 841, ,738 Other financial assets held-for-trading 4,391, ,391,523 Loans and receivables to banks ,500, ,500,805 Loans and receivables to other customers ,204, ,204,800 Financial investments ,794,022-4,794,022 Total financial assets 5,233, ,123,964 4,794,022-34,151,247 LIABILITIES Due to banks Derivative financial instruments 619, ,807 Due to other customers ,176, ,176,524 Other borrowings ,187, ,187,922 Total financial liabilities 619, ,364, ,984,253 Previous Period - 31st December 2014 HFT Designated HTM Amortised AFS Hedging Total at fair value cost ASSETS Cash and cash equivalents ,392, ,392,735 Balances with central banks , ,027 Placements with banks ,021, ,021,260 Derivative financial instruments 274, ,739 Other financial assets at fair value through profit or loss 6,287, ,287,009 Loans and receivables to banks ,011, ,011,900 Loans and receivables to other customers ,166, ,166,815 Financial investments ,140,248-5,140,248 Total financial assets 6,561, ,106,737 5,140,248-33,808,733 LIABILITIES Due to banks ,104, ,104,726 Derivative financial instruments 218, ,594 Due to other customers ,386, ,386,093 Other borrowings ,163, ,163,165 Total financial liabilities 218, ,653, ,872,578 Held for trading - HFT Designated at fair value through profit or loss - Designated at fair value Loans and receivables/deposits at amortised cost - Amortised cost SELECTED PERFORMANCE INDICATORS CERTIFICATION: We, the undersigned, being the Citi Country Officer and the Chief Financial Officer of Citi Bank certify jointly that: Held-to-maturity - HTM Available-for-sale - AFS Instruments of fair value and cash flow hedging - Hedging (a) the above statements have been prepared in compliance with the format and definitions prescribed by the Central Bank of Sri Lanka; (b) the information contained in these statements have been extracted from the unaudited financial statements of the bank unless indicated as audited. Signed: Signed: Ravin Basnayake Asanga de Silva Citi Country Officer Chief Financial Officer Date: 25/02/16 Date: 25/02/16 Regulatory Capital Adequacy Core Capital (Tier 1 Capital), Rs. Mn 9,565 9,344 Total Capital Base, Rs. Mn 9,616 9,386 Core Capital Adequacy Ratio, as% of Risk Weighted Assets (Minimum Requirement, 5%) 42.29% 42.36% Total Capital Adequacy Ratio, as% of Risk Weighted Assets (Minimum Requirement, 10%) 42.52% 42.55% Assets Quality (Quality of Loan Portfolio) Gross Non-Performing Advances Ratio, % (net of interest in suspense) 0.00% 0.00% Net-non performing Advances, %(net of interest in suspense) 0.00% 0.00% Profitability Interest Margin, % 3.76% 4.29% Return on Assets (before Tax), % 4.59% 4.24% Return on Equity, % 10.47% 9.82% Regulatory Liquidity Statutory Liquid Assets - DBU Rs. Mn. 15,084 17,744 Statutory Liquid Assets - FCBU Rs. Mn. 6,104 5,678 StatutoryLiquidAssetsRatio,%(MinimumRequirement, 20%) Domestic Banking Unit 81.93% % Off-Shore Banking Unit 72.42% % 1) Loans and Receivables to Other Customers Gross loans and receivables 10,286,998 8,230,169 (Less): Individual impairment Collective impairment (82,198 ) (63,354 ) Net loans and receivables including at fair value through profit or loss 10,204,800 8,166,815 (Less): Loans and receivables designated at fair value through profit or loss - - Net loans and receivables 10,204,800 8,166,815 2) Loans and receivables to Other Customers - By Product By Product - Domestic Currency Overdrafts 3,562,574 2,155,542 Bills of Exchange 643 1,395 Staff loans 161, ,432 Short-term 3,508,664 3,182,279 Sub Total 7,232,906 5,482,648 By Product - Foreign Currency Overdrafts 1,284, ,009 Bills of Exchange Short-term 1,770,092 1,920,889 Sub Total 3,054,092 2,747,521 Total 10,286,998 8,230,169 3) Movements in Individual and Collective Impairment during the Year Individual impairment Opening balance - - Charge/(Write back) to income statement - - Write-off during the year - - Other movements - - Closing balance - - Collective impairment Opening balance 63,354 78,840 Charge/(Write back) to income statement 18,844 (15,486 ) Other movements Closing balance 82,198 63,354 Total 82,198 63,354 4) Due to Other Customer - By Product By Product - Domestic Currency Demand deposits (current accounts) 4,493,435 4,698,032 Savings deposits 1,951,383 3,020,389 Time deposits 4,803,941 4,028,829 Other deposits 73,712 85,776 Sub Total 11,322,472 11,833,027 By Product - Foreign Currency Demand deposits (current accounts) 6,028,877 3,568,498 Savings deposits 1,302,126 3,181,568 Time deposits 454, ,914 Other deposits 68,820 94,085 Sub Total 7,854,052 7,553,066 Total 19,176,524 19,386,093

3 INCOME STATEMENT 01/01/15 to 31/12/15 01/01/14 to 31/12/14 Interest income 1,765,773 `1,877,305 Interest expenses 418, ,254 Net interest income 1,347,440 1,322,051 Fee and commission income 575, ,915 Fee and commission expenses 74,039 59,255 Net fee and commission income 501, ,660 Net Interest, fee and commission income 1,848,721 1,813,711 Net gain/(loss) from trading 754, ,006 Net gain/(loss) from financial investments - - Other operating income (net) 503, ,917 Total operating income 3,107,069 2,634,634 Less: Impairment Charge/(reversal) for loans and other losses 18,844 (15,486) Net operating income 3,088,225 2,650,120 Less: Operating Expenses Personnel expenses 502, ,231 Depreciation 28,438 28,353 Other expenses 675, ,780 Operating profit/(loss) before value added tax (VAT) 1,881,561 1,432,756 Less: Value added tax (VAT) on financial services, and Nation Building Tax 236, ,879 Operating profit/(loss) after value added tax (VAT) 1,644,950 1,307,877 Share of profits of associates and joint ventures - - Profit/(loss) before tax 1,644,950 1,307,877 Less: Tax expenses 519, ,715 Profit/(loss) for the year 1,125, ,162 Profit attributable to: Owners of the parent 1,125, ,162 Non-controlling interests - - 1,125, ,162 Earnings per share on profit - - STATEMENT OF COMPREHENSIVE INCOME 01/01/15 to 31/12/15 01/01/14 to 31/12/14 Profit/(loss) for the year 1,125, ,162 Other comprehensive income, net of tax Net actuarial gains/(losses) on defined benefit plans - (27,578 ) Net change in fair value on available-for-sale financial assets (142,993 ) 55,153 Effects of Currency Transalation 210,233 23,296 Net amount transferd to profit or loss on available-for-sale financial assets - - Other comprehensive income for the year, net of taxes 67,240 50,871 Total comprehensive income for the year 1,192,704 1,025,033 Attributable to: Owners of the parent 1,192,704 1,025,033 Non-controlling interests - -

4 STATEMENT OF FINANCIAL POSITION Assets Cash and cash equivalents 3,473,498 3,392,735 Balances with central banks 473, ,027 Placements with banks 8,471,303 7,021,260 Derivative financial instruments 841, ,739 Other financial assets held-for-trading 4,391,523 6,287,009 Loans and receivables to banks 1,500,805 3,011,900 Loans and receivables to other customers 10,204,800 8,166,815 Financial investments Available-for-sale 4,794,022 5,140,248 Property, plant and equipment 156,806 82,526 Deferred tax assets 20,877 20,877 Other assets 730, ,618 Total assets 35,059,123 34,282,754 Liabilities Due to banks - 1,104,726 Derivative financial instruments 619, ,594 Due to other customers 19,176,524 19,386,093 Other Borrowings 3,187,922 2,163,165 Current tax liabilities 755, ,345 Other liabilities 711, ,372 Total liabilities 24,451,229 23,907,295 Equity Stated capital/assigned capital 1,524,250 1,524,250 Statutory reserve fund 485, ,766 Retained earnings 8,138,511 7,763,083 Other reserves 459, ,360 Total equity 10,607,894 10,375,459 Total equity and liabilities 35,059,123 34,282,754 Contingent liabilities and commitments 14,048,853 13,954,143 Memorandum information Number of emoloyees Number of branches 1 1

5 STATEMENT OF CHANGES IN EQUITY AND RESERVES Stated capital/assigned capital Reserves Ordinary Voting Shares Ordinary Non-voting Shares Assigned Capital Statutory Reserve Fund Investment Fund Account Exchange Equallization Account Available for Sale Reserve Exchange Equalization Reserve Retained Earnings Total Non-Controlling Interest Total Equity Balance as at 01/01/15 (Opening balance) - - 1,524, ,766-5, , ,045 7,763,083 10,375,459-10,375,459 Total comprehensive income for the year Profit/(loss) for the year ,125,464 1,125,464-1,125,464 Other comprehensive income (142,993 ) - 210,233 67,240-67,240 Total comprehensive income for the year (142,993 ) - 1,335,697 1,192,704-1,192,704 Transactions with equity holders, recognised directly in equity Profit Transferred to head office (960,269 ) (960,269) - (960,269) Transfers to reserves during the period Transfers From reserves during the period Total transactions with equity holders (960,269 ) (960,269) - (960,269) Balance as at 31/12/15 (Closing balance) - - 1,524, ,766-5,170 (33,848 ) 488,045 8,138,511 10,607,894-10,607,894

6 STATEMENT OF CASH FLOWS 31/12/15 31/12/14 CASH FLOWS FROM OPERATING ACTIVITIES Interest & commision receipts 1,809,935 2,517,297 Interest & commision payments (413,656 ) (624,002 ) Receipts from other Operating Activities 1,779, ,300 Cash Payment to Employees. (540,161 ) (483,912 ) Other Overhead Expenses (812,202 ) (801,659 ) Operating Profit before changes in Operating Assets & Liabilities 1,823,807 1,146,024 (Increase)/Decrease in Operating Assets Loans and receivables to other customers and banks (545,038 ) (188,074 ) Deposits held for regulatory purposes 40,469 (99,243 ) Placements with Bank (1,450,043 ) (4,395,749 ) Other Assets (225,811 ) 14,658 (2,180,423 ) (4,668,409 ) Increase/(Decrease) in Operating Liabilities Deposits from Customers and Banks (209,569 ) 5,862,571 Other Borrowings 321,244 (1,096,972 ) Other Liabilities 5,772 27,951 Net Cash Generated from/(used in) Operating Activities before taxes. (239,169 ) 1,271,166 Income Tax Paid (243,870 ) (540,101 ) Net Cash Generated from/(used in) Operating Activities (483,039 ) 731,065 CASH FLOWS FROM INVESTING ACTIVITIES Net proceeds from Sale, Maturity, and Purchases of Financial Investments 1,674, ,541 Purchase of Property, Plant & Equipment (8,521 ) (41,799) Proceeds from Sale of Property, Plant & Equipment ,178 Net Cash used in Investing Activities 1,667, ,920 CASH FLOWS FROM FINANCING ACTIVITIES Effect of Currency Translation (142,993 ) 23,296 Profit remittence to Head Office (960,269 ) - Net Cash Generated from/(used in) Financing Activities (1,103,262 ) 23,296 Net Increase/(Decrease) in Cash & Cash Equivalents 80,764 1,589,281 Cash & Cash Equivalents at the Beginning of the Year 3,392,735 1,803,454 Cash & Cash Equivalents at the End of the Year 3,473,498 3,392,735 Reconciliation of Cash & Cash Equivalents Cash in hand 475, ,685 Balances with banks 2,955,851 2,830,114 Money at call and short notice 41, ,936 3,473,498 3,392,735

7 _ SUPPLEMENTARY INFORMATION CITIGROUP (In millions of dollars, except per share amounts and as otherwise noted) Twelve Months 2015 Twelve Months 2014 Total Revenues, Net of Interest Expense $ 76,354 $ 77,219 Provisions for Credit Losses and for Benefits and Claims $ 7,913 $ 7,467 Income from Continuing Operations before Income Taxes $ 24,826 $ 14,701 Citigroup's Net Income $ 17,242 $ 7,310 Diluted Earnings Per Share Income from Continuing Operations $ 5.42 $ 2.20 Citigroup's Net Income $ 5.40 $ 2.20 Shares (in millions) Average Basic 3, ,031.6 Adjusted Diluted 3, , Q Q 2014 Performance Metrics Return on Average Common Equity 5.9% 0.4% Regulatory Capital Ratios Common Equiy Tier 1 Capital Ratio 12.0% 10.57% Tier 1 Capital Ratio 13.4% 11.45% Total Capital Ratio 15.2% 12.80% (2) (3) Supplementary Leverage Ratio 7.1% 5.94% At December 31 (in billions of dollars, except Book Value Per Share) Total assets $ 1,731.2 $ 1,842.2 (4) Total deposits Citigroup's Stockholders' equity Book Value Per Share (5) Tangible book value per share (1) Citigroup's risk-based capital ratios, which reflect full implementation of the U.S. Basel III rules, are non-gaap financial measure. These ratios are calculated under the Basel III Advanced Approaches framework. (2) December 31, 2015 ratios are preliminary. (3) Citigroup's Supplementary Leverage Ratio (SLR), which reflects full implementation of U.S. Basel III rules, is a non-gaap financial measure. (4) Beginning December 31, 2014, approximately $21 billion of Deposits (and corresponding assets) were reclassified to held-for-sale within Other liabilities and Other assets, respectively, as a result of Citigroup's entry into an agreement in December 2014 to sell its Japan retail banking business, which was reported in Citi Holdings. The sale was completed on November 1, (5) Tangible book value per share is a non-gaap financial measure. Supplementary Citigroup information has been extracted from interim financials available on

8 ANALYSIS OF FINANCIAL INSTRUMENTS BY MEASUREMENT BASIS Current Period - 31st December 2015 HFT Designated HTM Amortised AFS Hedging Total at fair value cost ASSETS Cash and cash equivalents ,473, ,473,498 Balances with central banks , ,558 Placements with banks ,471, ,471,303 Derivative financial instruments 841, ,738 Other financial assets held-for-trading 4,391, ,391,523 Loans and receivables to banks ,500, ,500,805 Loans and receivables to other customers ,204, ,204,800 Financial investments ,794,022-4,794,022 Total financial assets 5,233, ,123,964 4,794,022-34,151,247 LIABILITIES Due to banks Derivative financial instruments 619, ,807 Due to other customers ,176, ,176,524 Other borrowings ,187, ,187,922 Total financial liabilities 619, ,364, ,984,253 Previous Period - 31st December 2014 HFT Designated HTM Amortised AFS Hedging Total at fair value cost ASSETS Cash and cash equivalents ,392, ,392,735 Balances with central banks , ,027 Placements with banks ,021, ,021,260 Derivative financial instruments 274, ,739 Other financial assets at fair value through profit or loss 6,287, ,287,009 Loans and receivables to banks ,011, ,011,900 Loans and receivables to other customers ,166, ,166,815 Financial investments ,140,248-5,140,248 Total financial assets 6,561, ,106,737 5,140,248-33,808,733 LIABILITIES Due to banks ,104, ,104,726 Derivative financial instruments 218, ,594 Due to other customers ,386, ,386,093 Other borrowings ,163, ,163,165 Total financial liabilities 218, ,653, ,872,578 Held for trading - HFT Designated at fair value through profit or loss - Designated at fair value Loans and receivables/deposits at amortised cost - Amortised cost Held-to-maturity - HTM Available-for-sale - AFS Instruments of fair value and cash flow hedging - Hedging

9 SELECTED PERFORMANCE INDICATORS Regulatory Capital Adequacy Core Capital (Tier 1 Capital), Rs. Mn 9,565 9,344 Total Capital Base, Rs. Mn 9,616 9,386 Core Capital Adequacy Ratio, as% of Risk Weighted Assets (Minimum Requirement, 5%) 42.29% 42.36% Total Capital Adequacy Ratio, as% of Risk Weighted Assets (Minimum Requirement, 10%) 42.52% 42.55% Assets Quality (Quality of Loan Portfolio) Gross Non-Performing Advances Ratio, % (net of interest in suspense) 0.00% 0.00% Net-non performing Advances, %(net of interest in suspense) 0.00% 0.00% Profitability Interest Margin, % 3.76% 4.29% Return on Assets (before Tax), % 4.59% 4.24% Return on Equity, % 10.47% 9.82% Regulatory Liquidity Statutory Liquid Assets - DBU Rs. Mn. 15,084 17,744 Statutory Liquid Assets - FCBU Rs. Mn. 6,104 5,678 StatutoryLiquidAssetsRatio,%(MinimumRequirement, 20%) Domestic Banking Unit 81.93% % Off-Shore Banking Unit 72.42% % CERTIFICATION: We, the undersigned, being the Citi Country Officer and the Chief Financial Officer of Citi Bank certify jointly that: (a) the above statements have been prepared in compliance with the format and definitions prescribed by the Central Bank of Sri Lanka; (b) the information contained in these statements have been extracted from the unaudited financial statements of the bank unless indicated as audited. Signed: Signed: Ravin Basnayake Asanga de Silva Citi Country Officer Chief Financial Officer Date: 25/02/16 Date: 25/02/16

10 NOTES TO THE FINANCIAL STATEMENT 1) Loans and Receivables to Other Customers Gross loans and receivables 10,286,998 8,230,169 (Less): Individual impairment Collective impairment (82,198 ) (63,354 ) Net loans and receivables including at fair value through profit or loss 10,204,800 8,166,815 (Less): Loans and receivables designated at fair value through profit or loss - - Net loans and receivables 10,204,800 8,166,815 2) Loans and receivables to Other Customers - By Product By Product - Domestic Currency Overdrafts 3,562,574 2,155,542 Bills of Exchange 643 1,395 Staff loans 161, ,432 Short-term 3,508,664 3,182,279 Sub Total 7,232,906 5,482,648 By Product - Foreign Currency Overdrafts 1,284, ,009 Bills of Exchange Short-term 1,770,092 1,920,889 Sub Total 3,054,092 2,747,521 Total 10,286,998 8,230,169 3) Movements in Individual and Collective Impairment during the Year Individual impairment Opening balance - - Charge/(Write back) to income statement - - Write-off during the year - - Other movements - - Closing balance - - Collective impairment Opening balance 63,354 78,840 Charge/(Write back) to income statement 18,844 (15,486 ) Other movements Closing balance 82,198 63,354 Total 82,198 63,354 4) Due to Other Customer - By Product By Product - Domestic Currency Demand deposits (current accounts) 4,493,435 4,698,032 Savings deposits 1,951,383 3,020,389 Time deposits 4,803,941 4,028,829 Other deposits 73,712 85,776 Sub Total 11,322,472 11,833,027 By Product - Foreign Currency Demand deposits (current accounts) 6,028,877 3,568,498 Savings deposits 1,302,126 3,181,568 Time deposits 454, ,914 Other deposits 68,820 94,085 Sub Total 7,854,052 7,553,066 Total 19,176,524 19,386,093