Contents. (1 ) Income Statement. (2 ) Statement of Comprehensive Income. (3) Statement of Financial Position. (4) Statement of Changes in Equity

Transcription

1 INTERIM FINANCIAL STATEMENTS FOR THE QUARTER ENDED 30th June 2017

2 Contents (1 ) Income Statement (2 ) Statement of Comprehensive Income (3) Statement of Financial Position (4) Statement of Changes in Equity (5) Statement of Cash Flows (6-7) Analysis of Financial Instruments by Measurment Basis (8-9) Analysis of Loans and Advance and Deposits,Interest Comparision (10-11) Selected Performance Indicators

3 Income Statement For the Quarter Ended 30 th June Item Quarter ended 30 th June 2017 Quarter ended 30 th June 2016(Restated) Period ended 30 th June 2017 Period ended 30 th June 2016(Restated) Rs "000" Rs "000" Rs "000" Rs "000" Unaudited Audited Unaudited Audited Interest Income 1,642,884 1,315,383 3,197,843 2,609,698 Less : Interest Expenses 1,198, ,884 2,306,763 1,638,556 Net Interest Income 443, , , ,142 Fee and Commission Income 71,640 88, , ,671 Less : Fee and Commission Expenses Net fee and Commission Income 71,640 88, , ,671 Net Trading Income /(expenses) Net Gain/(loss) on financial assets and liabilities designated at fair value Net Gain/(Loss) on financial Investments Other Operating Income Total Operating Income 515, ,725 1,021,337 1,127,813 Impairement for Loans and Other Losses Net impairment losses Individual Impairment 932 (2,441) 439 (5,328) Net impairment losses Collective Impairment 42,920 54,728 56,561 74,328 Others Total Impairement and Other Loss 43,852 52,288 57,000 69,000 Net Operating Income 471, , ,337 1,058,813 Personnel Expenses 231, , , ,476 Depreciation and Amortisation 32,365 16,229 49,067 31,290 Administrative Expenses 38,087 37,297 79,719 77,217 Other Operating Expenses 64,717 63, , ,020 Total Operating Expenses 366, , , ,003 Operating Profit/(Loss) before VAT & NBT 105, , , ,810 Less :VAT & NBT on Financial Services 49,051 50,599 97,962 96,128 Operating Profit/(Loss) after VAT 56, , , ,682 Shares of associate companies' and jointly controlled entities' Profit /(Loss) Profit/(Loss) before Corporate Tax 56, , , ,682 Less: Corporate Income Tax 42,761 62,107 85, ,430 Profit/(Loss) after Tax 13,485 59,420 54, ,252 Basic Earnings per Ordinary Share (Rs)

4 Statement of Comprehensive Income For the Quarter Ended 30 th June 2017 Item Quarter ended 30 th June 2017 Quarter ended 30 th June 2016(Restated) Period ended 30 th June 2017 Period ended 30 th June 2016(Restated) Rs "000" Rs "000" Rs "000" Rs "000" Un Audited Audited Un Audited Audited Profit/(Loss) for the period 13,485 59,420 54, ,252 Other Comprehensive Income Net Gain/(loss) on Revaluation surplus Acturial gains and Losses on defined benefit plans - - Net Gain/(loss) (arising from translating the financial statements of a foreign operation Net Gain on remeasuring available - for -sale financial assets 28,118 (1,748) 23,417 (385) Gains and Losses on Cash flow hedges Others Share of Profits of associates and Joint Ventures Less: Tax expenses/(income) relating to components of other comprehensive income Other comprehensive income for the period net of tax 28,118 (1,748) 23,417 (385) Total comprehensive income for the period net of tax 41,603 57,672 77, ,866 Attributable to Equity Holders of the Parent 41,603 57,672 77, ,866 Non - Controlling Interest ,603 57,672 77, ,866

5 Assets Item HDFC Bank of Sri Lanka Statement of Financial Position As at 30th June Rs "000" Rs "000" Unaudited Audited Cash and Cash Equivalants 150, ,695 Due from banks & other financial institutions 127,501 93,925 Balance with Central Bank Reverse Repurchase Agreements with banks and financial institutions 2,830, ,000 Derivative financial instruments Financial Investments AFS 2,099,353 2,053,279 Financial Assets designated at fair value through profit and loss Loans and Receivble to Banks Loans and Receivables to customers 31,697,320 30,259,872 Financial Investments held to maturity 12,434,739 11,268,849 Investments in subsideries Other Assets 1,006,320 1,023,268 Property, Plant and Equipment 346, ,323 Intangible Assets 143,750 20,794 Total Assets 50,835,378 45,622,006 Liabilities and Equity Due to banks less than one year 622, ,422 Repurchase Agreements Derivative Financial Instruments Financial Liabilities held for trading Financial Liabilities designated at fair value through profit and loss Deposits 36,877,051 32,122,527 Debt and Borrowings 8,442,992 8,665,624 Current Tax Liabilities 94, ,337 Other Liabilities 948, ,889 Deferred Tax Liabilities 45,405 36,441 Total Liabilities 47,030,237 41,894,239 Equity attributable to Equity Holders Stated Capital 962, ,093 Statutory Reserve fund 134, ,944 Retain Earnings 2,499,419 2,444,951 Other Reserves 209, ,779 Total Equity 3,805,141 3,727,767 Total Liabilities and Equity 50,835,378 45,622,006 Contingent Liabilities and Commitments 642, ,721 Net Assets value per Ordinary Share (Rs) Memorandum information Number of employees No of Branches 39 38

6 Item HDFC Bank of Sri Lanka Statement of Changes in Equity for the Period ended 30 th June 2017 Rs 000 Attributable to equity holders of the bank Stated Reserve Fund Revaluation Actuarial Gain Retained Earnings Other Total Total Equity Capital Reserves Reserves Balance as at 01/01/ , ,431 31,513 (9,299) 2,126, ,327 3,363,825 3,363,825 Profit/(Loss) for the Period 171, , ,252 Other Comprehensive income (net of tax) Share issue/increase of Assigned Capital Bonus issue Right issue Transfer to Reserves during the period Dividend paid Profit transferred to head office Gain/(loss) on revaluation of Property Plant and Equipment (365) (365) (365) Others Balance as at 30/06/ , ,431 31,148 (9,299) 2,298, ,942 3,534,328 3,534,327 Attributable to equity holders of the bank Item Stated Reserve Fund Revaluation Actuarial Gain Retained Earnings Other Total Total Equity Capital Reserves Reserves Balance as at 01/01/ , ,944 30,637 31,559 2,413, ,141 3,727,767 3,727,767 Profit/(Loss) for the Period 54,467 54,467 54,467 Other Comprehensive income (net of tax) Share issue/increase of Assigned Capital Bonus issue Right issue Transfer to Reserves during the period 23,417 23,417 23,417 Dividend paid Profit transferred to head office Gain/(loss) on revaluation of Property Plant and Equipment (511) (511) (511) Others Balance as at 30/6/ , ,944 30,127 31,559 2,467, ,559 3,805,141 3,805,141

7 Statement of Cash Flows Rs"000" Year Ended Year Ended Item (Unaudited) (Audited) Cash Flows from Operating Activities Interest received 3,297,031 2,847,424 Interest payments (1,918,462) (1,197,117) Receipt from other Operating Activities 125, ,057 Cash payments to Employees & Suppliers (464,369) (459,195) Payments on other Operating Activities (256,669) (286,761) Operating Profit before changes in Operating Assets 783,003 1,056,408 (Increase)/decrease in Operating Assets : Funds recovered from Customers 4,024,931 4,395,063 Funds advanced to Customers (5,648,628) (5,134,446) Other Assets (3,394) (51,516) Increase / ( decrease ) in Operating Liabilities (1,627,092) (790,899) Deposits from Customers 4,535, ,083 Others 239, ,246 4,774, ,329 Net cash from Operating Activities before Income Tax 3,930, ,838 Income Tax Paid (174,235) (98,674) Net Cash from Operating Activities 3,756, ,164 Cash Flows From Investing Activities Dividend Received (Purchase) /Sale of Investment Securities (3,695,921) 352,667 Investment in Subsidiaries Purchase of Property, Plant and Equipment (61,641) (42,929) Disposal of Property, Plant & Equipment 5,950 5,560 Net Cash from Investing Activities (3,751,612) 315,299 Cash Flows From Financing Activities Issues of Shares Issues/(redemptions ) of Shares Repayments of Borrowings (851,748) (404,938) Dividends Paid Proceeds from Borrowings 886,236 (377,792) Net Cash from Financing Activities 34,488 (782,731) Net Increase in Cash & Cash Equivalents 39, ,732 Cash & Cash Equivalents at beginning of the Period 238, ,171 Cash & Cash Equivalents at the end of the Period 277, ,903 Reconciliation of Cash and Cash Equivalents Cash in Hand 150, ,534 Cash/ Bank Balances 127, ,368 Cash & Bank Balances as at the end of the Period 277, ,903

8 Analysis of Financial Instruments by Measurment Basis As at 30th June 2017 In Rs."000" Held for Traiding Designated at fair Value through Profit & Loss Held to Maturity Amortised Cost Available for Sale Instrument of Fair value and Cash flow Hedging Other Total Cash and Cash Equivalents 150, ,258 Balances with Central Bank Placements with Banks 2,957,501 2,957,501 Derivative Financial Instruments Other Financial assets at fair value through profit or Loss Loans and Recievbales from Banks Loans and Recievbales from Others 31,697,320 31,697,320 Financial Investments 12,434,739 2,099,353 14,534,092 Other Assets 1,496,206 1,496,206 Total Financial Assets 15,392,240 31,697,320 2,099,353 1,646,464 50,835,378 Due to banks less than one year 622, ,244 Repurchase Agreements Derivative Financial Instruments Financial Liabilities held for trading Financial Liabilities designated at fair value through profit and loss Deposits 36,877,051 36,877,051 Debt and Borrowings 2,948,696 2,948,696 Debt Securities Issued 5,494,296 5,494,296 Capital and Reserves 3,805,141 3,805,141 Other Liabilities 1,087,949 1,087,949 Total Financial Liabilities 45,942,287 4,893,090 50,835,378

9 Analysis of Financial Instruments by Measurment Basis As at 31st December 2016 In Rs."000" Held for Traiding Designated at fair Value through Profit & Loss Held to Maturity Amortised Cost Available for Sale Instrument of Fair value and Cash flow Hedging Others Total Cash and Cash Equivalents 144, ,695 Balances with Central Bank Placements with Banks 393, ,925 Derivative Financial Instruments Other Financial assets at fair through Profit & Loss Loans and Recievbales from Banks Loans and Recievbales from Others 30,259,872 30,259,872 Financial Investments 11,268,849 2,053,279 13,322,128 Other Assets 1,501,385 1,501,385 Total Financial Assets 11,662,774 30,259,872 2,053,279 1,646,080 45,622,006 Due to banks less than one year 197, ,422 Repurchase Agreements Derivative Financial Instruments Financial Liabilities held for trading Financial Liabilities designated at fair value through profit and loss Deposits 32,122,527 32,122,527 Debt and Borrowings 2,659,952 2,659,952 Debt Securities Issued 6,005,671 6,005,671 Other Liabilities Interest Payable Capital and Reserves 3,727,767 3,727,767 Other Liabilities 908, ,667 Total Financial Liabilities 40,985,572 4,636,434 45,622,006

10 Analysis of Loan and Recivables As at 30 th June 2017 (000)' 01)Loans and Receivables to Other Customer As at As at In Rupees Thousand Gross Loans and receivables 32,546,053 31,051,605 (Less):Individual Impairment (21,422) (20,983) Collective Impairment (827,311) (770,749) Net Loans and Receivables including Those Designated at fair value through profit or Loss (Less):Loans and Receivables designated at fair value through profit or Loss Net Loans and Receivables 31,697,320 30,259, )Loans and Receivables to Other Customer By Product In Rupees Thousand As at As at By Products Domestic Currency Housing Loans Secured by Primary Mortgage Over Residential Properties 11,818,893 10,690,261 Housing Loans Against EPF. 7,756,557 7,734,817 Housing Loans on Guarantors & Others 7,411,316 7,301,942 Gold Loans 263, ,567 Business Loans 1,338,723 1,006,938 Lease Lentals receivables 906, ,976 Hire Purchase 58,723 74,803 Staff Loans 1,168,105 1,176,956 Cash Margin Loans 1,071, ,007 Interest & Other Receivables 751, ,337 Sub Total 32,546,053 31,051,605 (1.70) By Products Foreign Currency Overdrafts Term Loans Other Loans Sub Total Total 32,546,053 31,051,605

11 03) Movements in Individual and Collective Impairment during the period for Loans and Receivables to Other Customers As at As at In Rupees Thousand Individual Impairment Opening Balance as at 01st January 20,983 30,061 Charge for the Year(Addition) Charge(Write back) to income (43) (9,676) Other Movements Closing Balance 21,422 20,983 (0.58) 0.00 Collective Impairment Opening Balance as at 01st January 770, ,240 Charge for the Year(Addition) 251, ,731 Charge(Write back) to income (194,926) (8,221) Other Movements Closing Balance 827, , Total Impairment 848, ,733 (0.58) ) Due to Other Customers By Product As at As at In Rupees Thousand By Product Domestic Currency Demand deposit(current Accounts) Savings deposits 5,181,966 5,202,953 Fixed deposits 31,695,085 26,919,574 Other deposits Sub Total 36,877,051 32,122,527 By Product Foreign Currency Demand deposits Savings deposits Fixed deposits Other deposits Sub Total Total 36,877,051 32,122, Debt security interest rate vs Government Security Interest rates Debenture Type Interest rate % Gov. security Interest rate % Debenture 3 years Debenture 4 Years Debenture 5 Years Debenture 5Years 2015(Floating Qtr 2020) AWPLR+1.5% AWPLR+1.5% Debenture 5Years 2015(Fixed Semi 2020) Debenture 10Years 2015(Fixed Annu. 2025)

12 Selected Performance Indicators Item As at As at Regulatory Capital Adequacy Core Capital (Tier 1 Capital ) Rs. Mn 3,282 3,281 Total Capital Base, Rs Mn 3,019 2,986 Core Capital Adequacy Ratio, as % of Risk Weighted- Assets ( Minimum Requirement, 5%) 13.35% 15.05% Total Capital Adequacy Ratio, as % of Risk Weighted Assets ( Minimum Requirement, 10%) 12.28% 13.69% Assets Quality (Quality of Loan Portfolio) Gross Non-Performing Advances Ratio 16.62% 17.58% Net-Non performing Advances 13.94% 14.95% Gross Non -Performing Advance Ratio,Excluding EPF 9.83% 6.78% Net Non -Performing Advance Ratio Excluding EPF 7.20% 3.47% Profitability Interest Margin 3.70% 4.49% Return on Assets (before Tax) 0.99% 1.94% Return on Equity, 2.89% 11.01% Regulatory Liquidity Statutory Liquid Assets, Rs Mn 12,561 9,228 Statutory Liquid Assets Ratio, % ( Minimum Requirement, 20%) Debt/Equity Interest Cover Interest Yeild 13.76% 12.99% Financial Indicators 2nd Quarter (3 Year debentures) Issued 2013 Issued nd 2nd 2nd Quarter nd Quarter Quarter (4 Year Quarter (5 Year (5 Year Floating Qtr (5 Year Fixed Semi debentures) debentures) debentures) debentures) 2nd Quarter As at Market Price of shares/debentures during the Quarter Highest Price Per Share/Debenture Lowest Price Per Share/Debentures Last Trading Price Per Share/Debentures Listed Debenture Information Yeild to Maturity of Last Trade Done(% p. a) Quarter ended 30th June Years fixed rate(14.50 p.a) Years fixed rate(15.00 p.a) Years fixed rate(15.50 p.a) Years Floating Quarter(AWPLR+1.5) Years Fixed Semi(10.50 p.a) Years fixed Annual(12.00 p.a) - - Notes to the Financial Statement Share Price(Rs) 2. These Financial statements have been prepared in accordance with the Sri Lanka Accounting Standard No 34, 'Interim Financial Reporting' and other applicable Sri Lanka Accounting Standards 3. No circumstances have arisen since the Statement of Financial Position date which would require adjustment to or disclosure in the interim financial statements. 4. There are no liabilities to Management Fees or any other similar expenditure not provided in the interim accounts, 5. There are no material changes in the use of funds raised through an IPO/Rights /debenture issue during the quarter Debenture Price(Rs) 2nd Quarter (10 Year Fixed Annual debentures) 1.The Statement of Financial Position as at , the Income Statement, Statement of Comprehensive Income, the Statement of Cash Flow and the Statement of Changes in equity for the quarter ended, are drawn up from the unaudited accounts of the bank and provided the information required by the CSE and the CBSL and where required, provides additional disclosures to comply with LKAS 34, Interim Financial Reporting.

13 6. The Financial statements have been prepared in accordance with the accounting policies set out in the Annual Reports for the Year ended 31st Dec However impairment provision for the quarter ended 30th June 2017 was based on the budgeted financial statements for year 2017, as the accurate impairment provision cannot be arrived until the historic data is built up in the new core banking system. 7.There have not been significant changes in the nature of the contingent liabilities that required disclosure in the interim financial statements for the quarter ended 30th June Shares held by the twenty largest share holders of voting shares as at Share Holder Name No of Share % 1. National Housing Development Authority 32,180, Lanka Orix Leasing Company PLC 9,707, Thurston Investments Limited 9,155, Sampath Bank PLC/DR.T.Senthilverl 4,682, Urban Development Authority 300, Condominium Management Authority 300, Dr Ruwanpura Rohitha De Silva 295, Sampath Bank PLC/MR.Arunasalam Sithampalam 258, Seylan Bank PLC/DR.Thirugnanasambandara Senthilverl 210, Finco Holdings (Private) Limited 185, The Associated Newspapers of Ceylon Limited 180, Mr Dinesh Ajit De Zoysa 170, Miss Perera Sudishna Chandani 164, Dr.Sena Yaddehige 133, Richard Peris Financial Services(PVT) Ltd/M.A.A.Karim 127, Sezeka Limited 120, Union Bank of Colombo Plc/MR.Sithampalam Abishek 120, State Engineering Corporation 120, National Water supply & Drainage Board 120, Road Development Authority 120, Total 58,649, * The Public Holding percentage is 35.66%, No of Shares 23,076,615 and No of Shareholders 2, Directors' & Chief Executive Officer's holding in shares and Debentures of the Bank at the end of are as follows. Share Holder Name No of Shares No of Debentures 1.Mr.R.J.De. Silva - Chairman Mr.M.Surendran - Director 1,000-3.Mr.R.H.Meewakkala- Director Mr.L.S.Palansuriya- Director Mr.D.P.Wimalasena-Director Mrs.R.A.Chulananda - Director Mr.L.Jayasingha - Director 1,000-8.First Capital Markets Limited / Mr P.M. Gunawardana 1,000 9.Mr. N Wijeyanathan 3, Mr S A N Saranatissa Mr.U.Hettiarachchi - CEO - - Total 6, Number of shares representing the entity's stated capital - 64,710,520 CERTIFICATION: We, the undersigned, being the Chief Executive Officer and Chief financial officer of HDFC Bank of Sri Lanka certify that :- (1) The above statements have been prepared in compliance with the format and definitions prescribed by the Central Bank of Sri Lanka & Colombo Stock Exchange. (2) The information contained in these statements have been extracted from the unaudited financial statements of the bank unless indicated as audited.. D.V.Pathirana Upali Hettiarachchi Chief Financial Officer General Manager / CEO Signed for and on behalf of the Board of Directors, HDFC Bank of Sri Lanka R.J.De. Silva Chairman Dated: 15/08/2017. M.Surendran Director