PRADESHIYA SANWARDHANA BANK. INTERIM FINANCIAL STATEMENTS for the Year ended (Un-audited)

Transcription

1 PRADESHIYA SANWARDHANA BANK INTERIM FINANCIAL STATEMENTS for the Year ended (Un-audited)

2 PRADESHIYA SANWARDHANA BANK STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31st DECEMBER 2016 Current Year Previous Year Current Year for the Period Previous Year for the Period From 01/01/2016 To 31/12/2016 From 01/01/2015 To 31/12/2015 (Audited) From 01/10/2016 To 31/12/2016 From 01/10/2015 To 31/12/2015 Interest Income 14,715,111 11,759,233 4,427,770 3,616,436 Interest Expenses (7,099,226) (5,168,680) (2,050,342) (1,542,497) Net Interest Income 7,615,885 6,590,552 2,377,428 2,073,939 Fee and Commission Income 901, , , ,397 Fee and Commission Expenses (124,649) (114,175) (34,808) (28,534) Net Fee and Commission Income 776, , , ,864 Net Gain/(Loss) from financial Instruments at fair value through profit or Loss (21) (6) (44) (6) Other Operating Income (net) 25,642 10,936 (67,375) (59,516) Total Operating Income 8,417,950 7,227,257 2,713,420 2,303,280 Impairment for Loans & Other Losses - Individual Impairment 66,851 (91,035) 66,851 (91,035) Collective Impairment (81,521) 368,700 (57,559) 208,193 Net Operating Income 8,403,280 7,504,923 2,722,712 2,420,438 Personnel Expenses (4,609,233) (4,082,142) (1,287,046) (1,125,037) Depreciation and amortisation (37,169) (35,364) 148,284 92,412 Other Expenses (1,518,397) (1,299,269) (653,807) (474,679) Levy Paid to general treasury (125,000) (125,353) (31,250) (31,603) Operating Profit/(Loss) before value added tax (VAT) 2,113,482 1,962, , ,531 Nation Building Tax (100,849) (89,623) (29,272) (27,359) Value added tax (VAT) on financial services (717,728) (413,904) (324,057) (71,449) Profit/(Loss) before tax 1,294,905 1,459, , ,724 Tax Expenses (645,273) (576,808) (237,919) (144,202) Profit/(Loss) for the period 649, , , ,522 Profit attributable to : Shareholders 649, , , ,522 Non- controlling Interest Earning per share on profit Basic earning per ordinary share

3 PRADESHIYA SANWARDANA BANK STATEMENT OF OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31st DECEMBER 2016 Current Year Previous Year Current Year for the Period Previous Year for the Period From 01/01/2016 To 31/12/2016 From 01/01/2015 To 31/12/2015 (Audited) From 01/10/2016 To 31/12/2016 From 01/10/2015 To 31/12/2015 Profit for the year 649, , , ,522 Actuarial gains and losses on defined benefit plans (170,393) 61,260 (170,393) 61,260 Deferred tax effect on above - (14,074) - (14,074) Comprehensive income for the year, net of taxes (170,393) 47,187 (170,393) 47,187 Total comprehensive income for the year 479, , , ,708 Attributable to: Equity holders of the parent 479, , , ,708 Non-controlling interest , , , ,708

4 PRADESHIYA SANWARDHANA BANK STATEMENT OF FINANCIAL POSITION AS AT 31st DECEMBER 2016 Current Year As at 31/12/2016 Previous Year As at 31/12/2015 (Audited) Assets Cash and cash equivalents 428, ,592 Sri Lankan Government Securities - 607,814 Balance with banks 19,264,269 2,952,334 Placements with Banks 1,684,434 12,861,621 Fianacial assets held for trading Financial assets designated at fair value through profit or loss - - Loans and receivables given to banks - - Loans and receivables given to other customers 105,891,600 87,907,153 Financial Investments - Available-for-Sale - - Financial Investments - Held- to- Maturity 516,742 - Investments in Subsidiaries - - Investments in associate and joint Ventures - - Investment Properties - Goodwill and intangible assets 58,026 78,816 Deffered Tax assets 171, ,634 Other assets 1,958,464 1,441,724 Property, Plant and Equipment 1,188,257 1,044,605 Total assets 131,162, ,376,493 Liabilities Due to banks 11,994,763 7,915,017 Due to other customers 107,031,721 86,324,097 Debt Securities Issued 2,708,377 2,693,033 Other Liabilities 2,133,960 3,253,842 Retirement Benefit Obligation 1,278, ,097 Total liabilities 125,147, ,158,085 Equity State Capital/Assigned capital 1,370,937 1,370,937 Statutory Reserve Fund 567, ,391 Retained Earnings 1,196,328 1,400,133 Other Reserves 2,879,946 2,879,946 Total Shareholders' Equity 6,014,603 6,218,407 Non-Controling Interests Total Equity 6,014,603 6,218,407 Total Equity and Liabilities 131,162, ,376,493 Contingent Liabilities and Commitments 453, ,012 Memorandum Information Number of Permanent Employees 2,350 2,415 Number of Branches

5 Bank PRADESHIYA SANWARDHANA BANK STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31st DECEMBER 2016 Stated Capital/Assigned Reserves Capital Ordinary voting Shares Ordinary non voting Shares Assigned Capital Statutory Reserve Fund Revaluation Reserve Retained Earning Other Reserves Balance as at 01/01/2016 (Opening balance) - - 1,370, ,391 1,400,133 2,879,946 6,218,407-6,218,407 Profit / (loss) for the year , , ,633 Other comprehensive income (net of tax) (170,393) - (170,393) - (170,393) Dividend Paid (137,094) - (137,094) - (137,094) Proposed Impairment Adjustment for 2015 (545,950) (545,950) (545,950) Balance as at 31/12/2016 (Closing Balance) - - 1,370, ,391-1,196,328 2,879,946 6,014,603-6,014,603 Total Non Controlli ng Interest Total Equity

6 PRADESHIYA SANWARDHANA BANK STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31st DECEMBER 2016 Bank Current Year Previous Year 31/12/ /12/2015 Cash Flows From Operating Activities Profit before tax 2,113,482 1,962,795 Adjustment for : Non - Cash item included in Profits before tax 564, ,093 Change in Operating assets (18,547,127) (24,796,383) Change in Operating Liabilities 21,100,599 12,674,110 Other reclassification - (307) Contribution paid to defined benefit plans (22,372) (19,648) Tax paid (1,371,563) (1,157,331) Net cash generated from operating activities 3,837,332 (11,233,672) Cash flows from investing activities Purchase of property, plant and equipment Proceeds from the sale of property, plant and equipment Net Purchase of intangible assets Net cash (used in)/from investing activities (387,352) (413,677) 22,706 7,773 (16,378) (59,218) (381,025) (465,123) Cash flow from financing activities Net proceeds from the issue of subordinate debt - 2,500,000 Interest paid on Debenture (209,554) - Dividend paid (137,094) (137,094) Net cash from financing activities (346,648) 2,362,906 Net Increase / (decrease) in cash & cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period Reconciliation of Cash & Cash Equivalents Cash and cash equivalents Favorable Balances with banks Unfavorable Balances with banks 3,109,659 (9,335,888) 15,946,421 25,282,309 19,056,080 15,946, , ,592 20,948,703 15,813,955 (2,321,321) (178,126) 19,056,080 15,946,421

7 a. Bank - Current Period ASSETS PRADESHIYA SANWARDHANA BANK ANALYSIS OF FINANCIAL INSTRUMENTS BY MEASUREMENT BASIS AS AT 31st DECEMBER 2016 HFT HTM Loans & Receivables Cash and cash equivalents , ,698 Balances with other Banks ,264,269-19,264,269 Placements with banks - - 1,684,434-1,684,434 Fianacial assets held for trading Loans and receivables given to 105,891,600 other customers ,891,600 Other assets - - 1,021,862-1,021,862 Total Financial Assets ,290, ,291,067 AFS Total HFT HTM Amortized Cost AFS Total LIABILITIES Due to banks ,994,763-11,994,763 Due to other customers ,031, ,031,721 Other Borrowings - - 1,036,800-1,036,800 Debt securities issued - - 2,708,377-2,708,377 Total Financial Liabilities ,771, ,771,662 b. Bank - Previous Period HFT HTM Loans & Receivables ASSETS Cash and cash equivalents , ,592 Sri Lanka government securities - 607, ,814 Balances with other banks - - 2,952,334-2,952,334 Placements with banks ,861,621-12,861,621 Fianacial assets held for trading Loans and receivables given to 87,907,153 other customers ,907,153 Other assets , ,983 Total Financial Assets , ,807, ,415,697 AFS Total HFT HTM Amortized Cost AFS Total LIABILITIES Due to banks - - 7,915,017-7,915,017 Due to other customer ,324,097-86,324,097 Debt securities issued - - 2,693,033-2,693,033 Total Financial Liabilities ,932,146-96,932,146

8 31/12/ /12/2015 Item (Audited) Net Assets value per Share (Rs.) Regulatory Capital Adequacy Core Capital (Tier 1 Capital) Rs.'000 5,909,603 6,046,698 Total Capital Base Rs.'000 8,372,834 8,422,411 Core Capital Adequacy Ratio, as % of Risk Weighted Assets (Minimum Requirement, 5%) Total Capital Adequacy Ratio, as % of Risk Weighted Assets (Minimum Requirement, 10%) PRADESHIYA SANWARDHANA BANK SELECTED PERFORMANCE INDICATORS (AS PER REGULATORY REPORTING) AS AT 31st DECEMBER % 7.56% 9.41% 10.53% Assets Quality ( Quality of Loan Portfolio) Gross Non-Performing Advances Ratio, % ( net of interest in Suspense) Net Non-Performing Advances Ratio, % ( net of interest in Suspense and provision) 2.86% 4.00% 2.27% 3.20% Profitability Interest Margin, % 6.39% 6.60% Return on Assets (before Tax), % 1.09% 1.46% Return on Equity, % 10.62% 15.16% Invester information Debt equity (%) 45.03% 43.31% Interest cover (times) Regulatory Liquidity Statutory Liquid Assets, Rs.'000 21,631,973 18,534,483 Statutory Liquid Assets Ratio, % (Minimum requirement, 20%) 21.25% 21.77% Domestic Banking Unit Off-Shore Banking Unit Shareholders SHARE INFORMATION No of Ordinary Shares Current Year Previous Year 31/12/ /12/2015 No of Holding % Ordinary Shares Holding % Government Treasury 87,744,671 64% 87,744,671 64% Bank of Ceylon 16,448,448 12% 16,448,448 12% Peoples Bank 16,448,448 12% 16,448,448 12% National Savings Bank 16,452,126 12% 16,452,126 12%

9 EXPLANATORY NOTES 1 These financial statements are presented in accordance with Sri Lanka Accounting Standards comprising of Sri Lanka Financial Reporting Standards (SLFRS) and Sri Lanka Accounting Standards (LKAS) laid down by the Institute of Chartered Accountants of Sri Lanka, together with comparative period data as at and for the Year ended 31 December There are no changes in accounting policies and methods of computation since the publication of annual accounts for the year No circumstances have arisen and no material events have occurred since the reporting date, which require disclosures or adjustments to the financial statements. 4 During the period there were no material changes in the composition of assets, liabilities and contingent liabilities. 5 All known expenses have been charged in these financial statements. We Certify that, CERTIFICATION (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 for the period ended have been extracted from the unaudited financial statements of the bank. Signed By P.S. Edirisuriya Chief Finance Officer Signed By T.A.Ariyapala Chief Executive Officer Signed By Signed By H. Prasanna Premarathna W.A.P. Abeysinghe Chairman Director Date: 15-Feb-17

10 1) Loans and Receivables given to other Customers Bank Current period As at 31/12/2016 Previous period As at 31/12/2015 Gross loans and receivables 108,102,760 89,469,402 (Less): Zero rate loan fair value adjustment (159,863) (257,836) Staff loan fair value adjustment (760,807) (508,043) Individual impairment charges (24,184) (91,035) Collective impairment charges (1,266,306) (705,335) Net Loans and receivables including those designated at fair value through profit or loss 105,891,600 87,907,153 (Less): Loans and Receivables designated at fair value through profit & - - Loss Net loans and receivables 105,891,600 87,907,153 2) Loans and Receivables to other Customers - By product Bank Current period As at 31/12/2016 Previous period As at 31/12/2015 By Product -Domestic Currency Overdrafts - - Term Loans 95,737,973 78,352,122 Lease rentals receivables Credit Cards Pawning 7,873,700 7,653,380 Staff Loans 3,193,923 2,390,935 Interest Receivable on Loans & Advances 1,297,163 1,072,966 Sub Total 108,102,760 89,469,402 By Product -Foreign Currency Overdrafts - - Term Loans - - Other Loans (Please Specify) - - Sub Total - - Total 108,102,760 89,469,402

11 3) Movements in indivudual and collective impairement during the period for Loans and Receivables to other custome Bank Current period As at 31/12/2016 Previous period As at 31/12/2015 Individual Impairement Opening Balance 91,035 - Charge/(Write back) to income Statement (66,851) 91,035 Write- off during the year - - Other movements - - Closing Balance 24,184 91,035 Collective Impairement Opening Balance 705,335 1,141,224 Charge/(Write back) to income Statement 81,521 (368,700) Write- off during the year - - Other movements (66,500) (67,189) Proposed Impairment Adjustment for ,950 Closing Balance 1,266, ,335 Total Impairement 1,290, ,370 4) Due to other customers - By Product Bank Current period As at 31/12/2016 Previous period As at 31/12/2015 By Product -Domestic Currency Dormant Deposits (current Accounts) - - Savings Deposits 32,669,438 28,792,809 Fixed Deposits 65,031,577 49,457,681 Other Deposits (Long Term Savings) 9,330,706 8,073,607 Sub Total 107,031,721 86,324,097 By Product -Foreign Currency Dormant Deposits (current Accounts) - - Savings Deposits - - Fixed Deposits - - Other Deposits (Please Specify) - - Sub Total - - Total 107,031,721 86,324,097

12 Debenture Information Type No of Debentures Face value (Rs.) Amortized cost 2016 (Rs.) Allotment Date Maturity Date Rate of the interest Interest Rate of comparable Government Security Traded Yield 2016/01/ /12/ /01/ /12/31 A 21,288,500 2,128,850,000 2,128,850, /01/ /01/30 B 3,610, ,020, ,020, /01/ /01/30 C 101,300 10,130,000 10,130, /01/ /01/30 25,000,000 2,500,000,000 2,500,000,000 Fixed % per annum payable annually 10.61% 0% Not Traded Not Traded Fixed % per annum payable bi-annually 10.61% 0% Not Traded Not Traded Fixed % per annum payable quarterly 10.61% 0% Not Traded Traded RDB Debenture Type C (Unsecured subordinate Redeemable 5 Year Debenture) Last Traded Date 03/12/ Highest Price - Rs , Lowest Price - Rs , Last Transaction Price - Rs