This financial review provides details of the Bank’s financial performance of the year under review. It is meant to be read in conjunction with the Operating Context and Outlook, which explains the broader global, local, and sector trends that contextualise the Bank’s performance, and the Management Discussion and Analysis, which analyses how the Bank grew its financial and other capitals in relation to its Sustainability Framework and the strategic imperatives.

Performance of the Group

An overview

In a period of unprecedented macroeconomic variables, the Commercial Bank Group comprising of Sri Lanka’s largest private sector bank, its subsidiaries and the associate, ended the year 2022 with a solid operational performance, having navigated the perfect storm with a series of forward-looking strategies. The Group saw its assets growing by Rs. 516.063 Bn., or 26.02% (2021 – 12.54%) to approach the Rs. 2.5 Tn., at end of 2022. The gross income of the Group recorded a growth of 71.31% (2021 – 7.70%) to reach Rs. 280.387 Bn., compared to Rs. 163.675 Bn. recorded in 2021, while total operating income and profit after tax of the Group for the year reached Rs. 136.637 Bn., (2021 – Rs. 93.598 Bn.) and Rs. 24.399 Bn., (2021 – Rs. 24.290 Bn.) respectively.

Given that the Bank accounted for 97.05% of the total assets (2021 – 98.27%) and 94.14% of the profit of the Group (2021 – 97.18%), the analysis below provides a detailed account of the Bank’s financial performance, followed by a brief commentary on the performance of the Bank’s operations in Bangladesh, other overseas operations, local subsidiaries and the associate as given in this section.

Performance of the Bank

An overview

Total assets of the Bank grew by Rs. 476.585 Bn., or 24.45% (2021 – 12.27%) during the year under review and stood at Rs. 2.426 Tn., as at December 31, 2022 (2021 – 1.949 Tn.). The growth in assets was almost fully funded by the growth in deposits of Rs. 471.266 Bn., or 32.66% (2021 – 13.99%), which reached Rs. 1.914 Tn., as at the year-end (2021 – Rs. 1.443 Tn.). Lending portfolio net of provision for impairment grew by Rs. 115.824 Bn., or 11.42% (2021 – 13.13%) during the year and stood at Rs. 1.130 Tn., at the year end (2021 – Rs. 1.015 Tn.).

The profit after tax of the Bank for the year 2022 amounted to Rs. 22.970 Bn., compared to Rs. 23.606 Bn., reported in 2021 and recorded a marginal decrease of 2.70%. (2021 – growth of 44.17%). This can be considered extremely satisfactory given the unprecedented macroeconomic volatilities that prevailed throughout the year under review during which the Bank had to make the impairment charges in a single year in its history. Total operating income for the year recorded a significant increase of 45.40% and stood at Rs. 132.888 Bn., compared to Rs. 91.395 Bn. reported in 2021 (2021 – 21.96%). This helped the Bank to mitigate the impact of the impairment charges and other losses made in 2022 of Rs. 71.462 Bn., compared to Rs. 24.692 Bn., made in 2021 which reflected a record increase of 189.41% (2021 – 14.94%) facilitating the Bank to report an operating profit before taxes of Rs. 26.491 Bn., for 2022 compared to Rs. 37.810 Bn., recorded in 2021 which reflected a negative growth of 29.94% (2021 – growth of 34.96%).

The lacklustre performance witnessed in both the ASPI and S&P SL20 indices of the Colombo Stock Exchange (CSE) during the year 2022 further hampered volumes of shares traded and the share prices of the banking sector due to the perceived elevated risks associated with the banking sector arising from the unprecedented operating environment. However, the price to book value and the market capitalisation of the Bank’s shares remained the highest among peers in the Banking sector. The Bank’s market capitalisation ranked twelfth among all listed companies on the Colombo Stock Exchange as at December 31, 2022.

With due consideration to the performance of the Bank during the year, the dividend policy and the Bank’s commitment to pay a reasonable dividend to the shareholders, the Board of Directors has recommended a first and final scrip dividend of Rs. 4.50 per share for the year 2022 (2021: Rs. 7.50 per share, which comprised of a cash dividend of Rs. 4.50 per share and a scrip dividend of Rs. 3.00 per share).

Income Statement

Financial intermediation

Gross income grew by 71.20% (2021 – 7.46%) to Rs. 275.444 Bn., for the year from Rs. 160.886 Bn., reported in 2021, primarily due to the noteworthy contributions made by the three main sources of gross income, being income from fund-based operations, income from fee-based operations and income from other sources as explained in the following section. As the growth in gross income for the year is higher than the growth in average assets for the year of 18.71% (2021 – 17.99%), the financial intermediation margin (gross income/average total assets) improved to 12.59% as at end of 2022 (2021 – 8.73%), with an appreciable improvement of 386 bps. The financial intermediation margin for the banking sector for the year was 12.03% (2021 – 8.53%).

Fund-based operations

Interest income, which accounted for 79.26% (2021 – 81.08%) of the gross income of Rs. 275.444 Bn., increased to Rs. 218.327 Bn., during the year from Rs. 130.443 Bn., in 2021, recording a significant improvement of 67.37% (2021 – 6.63%). This was mainly attributable to the growth in both the average interest-earning assets by Rs. 238.630 Bn., and the increase in average rate of interest on interest earning assets by 3.59%. Firstly, the average interest-earning assets grew due to the sharp depreciation of the Sri Lankan Rupee against the US Dollar from Rs. 200 to Rs. 367 during the year, boosting the Rupee equivalent of the foreign currency denominated assets. Secondly, the average rate of interest on interest earning assets improved due to the increase in income from foreign currency denominated assets due to the depreciation of Sri Lankan Rupee as explained above and the sharp increase in market interest rates consequent to the significant increase in policy rates by the CBSL in early part of 2022. Consequently, the excess liquidity that arose from the growth in deposits over the growth in loans and advances, was invested in government securities during the year 2022. As a result, interest income earned from sources other than loans and advances, accounted for 34.46% (2021 – 39.38%) of total interest income, an increase of 46.47% compared to 2021 (2021 – 40.54%). In the meantime, interest income from loans and advances increased by 80.95% in 2022 (2021 – negative growth of 7.82%) owing to the sharp increase in market interest rates that prevailed during the most part of the year and also due to the impact of depreciation of the Sri Lankan Rupee.

Interest expenses, which accounted for 62.56% of the interest income (2021 – 50.47%), more than doubled to Rs. 136.583 Bn., during the year from Rs. 65.832 Bn., reported in 2021, recording a mammoth growth of 107.47% (2021 – negative growth of 9.52%). This was mainly due to growth in average interest-bearing liabilities by Rs. 259.741Bn., and also due to the sharp increase in the average cost of funds by 2.95% consequent to the repricing of liabilities in keeping with the market interest rates which eventually resulted in a shift of funds from low-cost to high-cost funds. The increase in interest payments on deposits and borrowed funds denominated in foreign currency consequent to the depreciation of Sri Lankan Rupee too contributed for the increase in cost of funds. Although the CASA ratio of the Bank, which is considered as the industry benchmark reduced to 38.36% from 47.83% as at end 2021 stood very much above the industry average of 33.13%.

Consequently, net interest income of the Bank improved to Rs. 81.744 Bn., from Rs. 64.611 Bn., reported in 2021, recording a notable growth of 26.52% (2021 – 30.34%), accounting for 61.51% of the total operating income (2021 – 70.69%) and as a result the net interest margin of the Bank improving by 23bps to 3.74% in 2022 compared to 3.51% reported in 2021.

Fee-based operations

Fee and commission income amounted to Rs. 25.464 Bn., compared to Rs. 15.410 Bn. reported in 2021, recording a growth of 65.24% (2021 – 36.76%) mainly due to an increase in income from trade and remittance businesses and credit and debit cards related services during the year.

Fee and commission expenses, which relate mostly to credit and debit cards related services increased to Rs. 5.973 Bn., from Rs. 3.659 Bn., reported in 2021, recording an increase of 63.24% (2021 – 81.84%). The sharp depreciation of the Rupee against the US Dollar during 2022 too contributed for increases in both the commission income received in foreign currency and the fees paid in foreign currency mostly related to cards increased sharply due to the same reason. Consequently, net fee and commission income increased to Rs. 19.491 Bn., compared to Rs. 11.751 Bn., reported in 2021, recording a growth of 65.86% (2021 – 26.95%), and it accounted for 14.67% of the total operating income (2021 –12.86%).

Other income

Total other income of the Bank, comprising of net gains or losses from trading, net gains or losses from derecognition of financial assets and net other operating income more than doubled by 110.57% to Rs. 31.653 Bn., for the year compared to Rs. 15.032 Bn. reported in 2021 (2021 – negative growth of 6.70%). The main contributory factor for this increase was the substantial exchange gains earned by the Bank due to the sharp depreciation of the Sri Lankan Rupee against the US Dollar during 2022 and the gains recorded from swaps/forward transactions done.

Total operating income

Consequent to the notable improvements in net interest income, net fee and commission income, and in other income, total operating income of the Bank grew to Rs. 132.888 Bn., by Rs. 41.494 Bn., or 45.40% compared to Rs. 91.395 Bn., reported in 2021 (2021 – 21.96%).

Impairment charges

Impairment charges and other losses for the year increased to Rs. 71.462 Bn., by 189.41% (2021 – 14.94%) from Rs. 24.692 Bn. reported in 2021, recording the highest provision the Bank has ever made for a single year in its history. This was mainly due to the Bank providing Rs. 47.134 Bn. (2021 – Rs. 6.893 Bn.) on account of foreign currency denominated securities issued by the Government of Sri Lanka consequent to the downgrading of the sovereign rating and Rs. 24.150 Bn., for loans and advances portfolio (2021 – Rs. 17.791 Bn.) under individual and collective impairment provisions and by way of management overlays to account for potential losses which the impairment models may not be capturing due to the high level of uncertainty and volatility that prevailed throughout the year.

Net operating income

The robust growth in total operating income by Rs. 41.494 Bn., was not adequate to off-set the unprecedented increase in impairment charges and other losses of Rs. 71.462 Bn., resulting in the net operating income reducing by Rs. 5.275 Bn., or 7.91% to Rs. 61.427 Bn., for the year (2021 – a growth of 24.78%) compared to Rs. 66.702 Bn., reported in 2021.

Operating expenses

Total operating expenses for the year amounted to Rs. 34.936 Bn., compared to Rs. 28.892 Bn. reported in 2021 and recorded an increase of Rs. 6.044 Bn., or 20.92% (2021 – 13.57%). This was mainly as a result of the increase in personnel expenses by 17.10% (2021 – 12.07%) to Rs. 19.113 Bn., from Rs. 16.321 Bn., for 2021, due to the salary increases granted and increases in other staff related expenses. In addition, other operating expenses for the year too increased by 30.54% (2021 – 19.08%) to Rs. 12.260 Bn., from Rs. 9.392 Bn., for 2021, due to price hikes in relation to almost all expense categories, increase in foreign currency related payments for the maintenance of assets consequent to the sharp depreciation of the Sri Lankan Rupee against the US Dollar and an increase in the VAT rate twice during the year from 8% to 15%.

However, consequent to the efforts taken to contain the operating expenses despite the inflationary pressures, the Bank’s Cost to Income ratio (excluding taxes on financial services) for the year 2022 improved to 26.29% from 31.61% in 2021.

Profit before and after taxes

The increase in impairment charges and other losses by 189.41% and the increase in total operating expenses by 20.92% resulted in operating profit before taxes on financial services reducing to Rs. 26.490 Bn., compared to Rs. 37.810 Bn., recorded in 2021 by Rs. 11.320 Bn., or 29.94% (2021 – growth of 34.96%).

In line with the decrease in operating profit, the taxes on financial services for the year reduced to Rs. 3.892 Bn., compared to Rs. 5.809 Bn., for 2021 and recorded a decrease of Rs. 1.917 Bn., or 33.00% (2021 – an increase of 28.94%). Consequently, the Bank’s Cost to Income ratio (including taxes on financial services) for the year 2022 improved to 29.22% from 37.97% in 2021.

The profit before income tax expense for the year decreased to Rs. 22.598 Bn., compared to Rs. 32.001 Bn., reported in 2021 and recorded a reduction of Rs. 9.403 Bn., or 29.38% (2021 – an increase of 36.11%). Income tax charge for the year reflected a reversal of Rs. 0.371 Bn., compared to a tax charge of Rs. 8.395 Bn., for 2021, and this reflected a decrease of Rs. 8.767 Bn., 104.42% in YoY tax charge (2021 – an increase of 17.62%). The reversal in income tax charge was primarily due to an increase in the deferred tax assets consequent to the change in the income tax rate to 30% effective from July 01, 2022, from the previous income tax rate of 24% where the effect of the overall reversal in deferred tax was more than the current tax liability which was computed at two different income tax rates, the first being at 24% on the taxable income for the first half of the year and second being at 30% on the taxable income of the second half for the Sri Lankan Operation of the Bank. The tax provision for the Bank’s Bangladesh Operation has been computed at 40% for the full year.

Consequently, the profit after tax for the year recorded a negative growth of 2.70% (2021 – a positive growth 44.17%) and stood at Rs. 22.970 Bn., compared to Rs. 23.606 Bn. reported for 2021.

Profitability

Reflecting the negative growth in profit after tax and the higher growth in total assets and equity during the year, both Return on Assets (ROA) and Return on Equity (ROE) reduced to 1.05% (2021 – 1.28%) and 12.46% (2021 – 14.66%) respectively. ROA (before tax) for the year too reduced to 1.03% (2021 – 1.74%).

Other Comprehensive Income (OCI)

Other comprehensive income of the Bank reported an income of Rs. 26.215 Bn., during the year as against an expense of Rs. 10.705 Bn., reported for 2021, primarily due to a net reversal in the fair value losses o/a reclassification of debt instruments from Fair Value Through Other Comprehensive Income (FVOCI) to Amortised Cost (AC), amounting to Rs. 12.292 Bn., (2021 – Nil). The Bank reclassified bulk of its Treasury Bond Portfolio amounting to Rs. 197.08 Bn., majority of the Sri Lanka Development Bond (SLDB) portfolio amounting to Rs. 55.85 Bn., (USD 152.19 Mn.) and entire Sri Lanka Sovereign Bond (SLSB) portfolio amounting to Rs. 39.87 Bn., (USD 108.63 Mn.) from FVOCI category to AC category, with effect from April 01, 2022, in line with the guidelines issued by the CA Sri Lanka in the form of a Statement of Alternative Treatment (SoAT) on “Reclassification of Debt Portfolio due to unprecedented changes in the macro-economic conditions”. The above mentioned Rs. 12.292 Bn., consists of the cumulative losses that the Bank recognised (net of tax) in the equity through OCI prior to the aforesaid reclassification. The loss reported in the OCI of the Bank during the year 2021 was primarily due to net losses that arose on investments in financial assets at FVOCI, amounting to Rs. 12.599 Bn. In addition, there was a gain of Rs. 14.877 Bn. (2021 – Rs. 1.153 Bn.) on translation of financial statements of foreign operation of the Bank.

Accordingly, the total comprehensive income of the Bank for the year 2022 increased to Rs. 49.185 Bn., compared to Rs. 12.901 Bn., reported in 2021, reflecting a growth of 281.24% (2021 – a negative growth of 27.44%).

Statement of Financial Position

The Bank is the first private sector bank in the country to cross the Rs. 1 Tn. in total assets (in 2016), deposits (in 2019) and loans and advances (in 2021).

Assets

Total assets of the Bank grew by a noteworthy 24.45% (2021 – 12.27%) during the year to reach Rs. 2.426 Tn., from Rs. 1.949 Tn., at the end of the previous year. This growth is well in excess of the industry growth of 14.12% (2021 – 12.46%). This was largely due to the upward revaluation effect of the assets and liabilities of the Bank which are denominated in foreign currency due to the sharp depreciation of the Rupee against the US dollar during the first half of the year and also due to the increase in investments in Government Securities due to the excess liquidity created consequent to the growth in deposits being higher than the growth in loans and advances.

Loans and advances to customers

Reversing the trend observed in the first half of 2022, credit to the private sector increased during the latter part of the year despite the adverse macro-economic environment that prevailed in the country. The gross loans and advances portfolio as at December 31, 2022 stood at Rs. 1.220 Tn., compared to Rs. 1.079 Tn., a year ago and the net loans and advances as at December 31, 2022 stood at Rs. 1.130 Tn., compared to Rs. 1.015 Tn., as at end 2021, recording a growth of 11.42% (2021 – 13.13%), and it accounted for 46.60% (2021 – 52.05%) of total assets as at December 31, 2022.

The Bank continued to extend concessions and accommodate moratorium requests of the borrowers affected by both the Easter Sunday attack and the COVID-19 pandemic during the year 2022 as well. The loans and advances portfolio under active moratoria increased from Rs. 50.877 Bn., as at December 31, 2021 to Rs. 86.294 Bn., by end 2022 despite certain sectors coming out of the forbearance measures. We continued to engage with these customers and accommodated reschedulements/alternative action plans to help them.

Asset quality

Quality of the loans and advances portfolio is a key determinant of the sustainability of the Bank’s operations. The conservative risk profile, with a moderate risk appetite and a robust risk management framework, helped the Bank to end the year with both the Net Impaired Loans (Stage 3) to Total Loans and Advances Ratio and Impaired Loans (Stage 3) to Total Loans and Advances Ratio (excluding undrawn commitment) at 5.25% (2021 – 4.08%) and 9.41% (2021 – 7.33%), respectively, compared to industry averages of 10.82% and 10.94%, respectively. Despite there being a deterioration in both the above ratios in 2022 in view of the unprecedented macro-economic conditions prevailing in the country, both the above ratios can be considered acceptable compared to the industry averages.

In addition, both the impairment (Stage 3) to Stage 3 Loans Ratio (Stage 3 Impairment Coverage Ratio) and the cumulative impairment provisions for loans and advances as a percentage of the total loans and advances portfolio (Total Impairment Coverage Ratio) stood at 40.42% (2021 – 44.34%) and 7.32% (2021 – 5.94%) respectively, by end of 2022, compared to industry averages of 43.59% and 7.26%, respectively. The Bank continued to re-evaluate the stage assessment criteria for loans and advances to reflect the actual risks associated with customers.

The open credit exposure ratio (which is the net exposure on Stage 3 loans as a percentage of regulatory capital) stood at 34.41% at end of 2022 (2021 – 25.33%).

The loans to customers portfolio of the Bank is fairly well diversified across a wide range of industry sectors with no significant exposure to any particular sector. Please see note 33 for the details.

Deposits

With the solid domestic franchise in Sri Lanka, customer deposits continued to be the single biggest source of funding for the Bank, accounting for 78.92% (2021 – 74.03%) of the total assets as at December 31, 2022. Deposits grew by 32.66% (2021 – 13.99%) to Rs. 1.914 Tn. as at December 31, 2022, partly due to the effect of the depreciation of the Rupee against the US Dollar. The growth in deposits during the year was Rs. 471.266 Bn., while the CASA ratio reduced to 38.36% (2021 – 47.83%) as at December 31, 2022, which is still considered as the best ratio compared to industry average of 33.13%.

Other liabilities

The significant increase in deposit liabilities when compared to the lower growth in loans and advances meant that the Bank had excess liquidity during most part of the year. This helped the Bank to reduce its external borrowings during the year enabling it to reduce its interest expenses and improve its net interest income and the interest margins as explained earlier. The total other liabilities as at the year-end reduced to Rs. 307.740 Bn., from Rs. 341.226 Bn., at end of 2021. During the year, the Bank raised Rs. 10.000 Bn. through an issue of BASEL III compliant debentures while there were no debentures that matured during the year.

Capital

The Bank is guided by its ICAAP, Capital Augmentation Plan and the Board approved dividend policy in maintaining capital commensurate with its current and projected business volumes. Accordingly, with the profit for the year, other comprehensive income for the year and the prudent dividend policy helped the Bank to grow its equity capital by a solid 23.53% (2021 – 4.93%) to Rs. 203.699 Bn., as at December 31, 2022 from Rs. 164.894 Bn., as at December 31, 2021. With an on-balance sheet multiplier (gearing ratio) of 11.91 times (2021 – 11.82 times), equity funded 8.40% (2021 – 8.46%) of the total assets as at the current year end, compared to the industry average of 12.78 times. The Bank ploughed back Rs. 18.353 Bn., out of profit for the year in 2021 after the payment of cash dividends.

The risk weighted assets of the Bank grew by 22.10% (2021 – 8.95%) to Rs. 1.355 Tn., as at December 31, 2022, from Rs. 1.110 Tn., as at end of 2021. Consequently, both the Tier 1 and the total capital ratios stood at 11.389% (2021 – 11.923%) (minimum requirement – 10.000% for 2022) and 14.657% (2021 – 15.650%) (minimum requirement – 14.000% for 2022) respectively, as at December 31, 2022, which are in excess of the higher capital adequacy requirement imposed on the Bank under the Basel III requirements as a Domestic Systemically Important Bank (D-SIB). The equity multiplier in terms of risk weighted assets to regulatory total capital increased to 6.82 times from 6.39 times a year ago.

As per the CBSL Basel III regulations, the Bank is one of the highest graded D-SIB, showcasing the Bank’s importance to the Sri Lankan economy.

Liquidity

The growth in deposits continued to outpace the growth in loans and advances during the current year as well, causing the Bank to invest the excess liquidity in Government securities. Nevertheless, at a time of unprecedented volatility such as what we currently experience, excess liquidity provides a high level of comfort to the Bank and also, enables the Bank to benefit from the upturn envisaged in credit demand in the years ahead. Given its importance, review of liquidity is a permanent item of the agenda in the fortnightly ALCO meetings of the Bank. The consolidated liquid assets ratio of the Sri Lankan operations of the Bank stood at 35.88% compared to the statutory minimum requirement of 20%.

The consolidated liquid assets ratio of the Sri Lankan operations of the Bank stood at 35.88% compare to the statutory minimum requirement of 20%. Liquid assets ratios of the Domestic Banking Unit (DBU) and the Off-shore Banking Centre (OBC) as at end of 2022, were 35.01% (2021 – 38.73%) and 32.37% (2021 – 36.39%) respectively. Gross loans to deposits ratio was 63.71% (2021 – 74.75%). Available stable funding based on definitions prescribed by the CBSL stood at Rs. 1.767 Tn., as at December 31, 2022 (2021 – Rs. 1.447 Tn.), leading to a Net Stable Funding Ratio (NSFR) of 173.58% (2021 – 157.47%), comfortably above the statutory minimum of 90% for the year 2022 (2021 – 100%). Demonstrating the availability of unencumbered high-quality liquid assets at the disposal of the Bank, the Liquidity Coverage Ratio (all currency) and the Liquidity Coverage Ratio (Rupee) stood at 293.91% (2021 – 242.52%) and at 405.91% (2021 – 425.97%) respectively, as at December 31, 2022 as against the statutory minimum of 90% for both ratios for the year 2022 (2021 – 100%).

Segmental performance

The contribution from the Personal Banking Division to the profit before tax of the Group significantly increased mainly due to the increase in net interest income and net fee and commission income, while the contribution to the profit before tax of the Group from the Corporate Banking Division too increased in 2022, mainly due to the increase in net interest income and net fee and commission income despite a substantial increase in impairment charges and other losses. Further, the contribution from the International Operations to the profit before tax of the Group too increased by almost three times during 2022. In the meantime, the Bank’s Treasury division recorded a substantial loss for the year 2022, mainly due to additional impairment provisions o/a USD denominated Government Securities consequent to the downgrading of the sovereign rating of the country.

A comprehensive analysis on segmental performance is given below in this section.

 

The interim financial performance and the financial position of the Group and the Bank for 2021 and 2022 are given in the section on Statement of Financial Position while the Bank’s performance in terms of key indicators over the past ten year period is given in the section on “Decade at a Glance”.

Table – 24: Core Financial Soundness Indicators (FSIs)

Financial Soundness Indicators given below provide insights into the financial health and stability of the Bank.

Financial soundness indicator (%)	2022	2021	2020	2019	2018
Capital Adequacy (under Basel III)
Common Equity Tier 1 ratio (Current minimum requirement – 8.5%)	11.39	11.92	13.22	12.30	11.34
Tier 1 capital ratio (Current minimum requirement – 10%)	11.39	11.92	13.22	12.30	11.34
Total capital ratio (Current minimum requirement – 14%)	14.66	15.65	16.82	16.15	15.60
Non-performing loans (net of interest in suspense and specific provisions) to equity	N/A	9.26	12.96	20.48	12.71
Non-performing credit facilities (NPCF) [net of impairment] to equity	33.56	26.69	N/A	N/A	N/A
Asset quality:
Gross NPL ratio (Based on regulatory provisions effective until December 31, 2021)	N/A	4.62	5.11	4.95	3.24
Net NPL ratio (Based on existing regulatory provisions effective until December 31, 2021)	N/A	1.44	2.18	3.00	1.71
Impaired loans (Stage 3) ratio (Based on existing regulatory provisions which includes undrawn commitments)	5.25	3.85	6.78	N/A	N/A
Impairment (Stage 3) to Stage 3 Loans Ratio (Based on existing regulatory provisions which includes undrawn commitments)	39.60	42.76	30.87	N/A	N/A
Total regulatory provisions ratio on gross loans and receivables (Based on regulatory provisions effective until December 31, 2021)	N/A	3.52	3.32	2.37	1.97
Specific provision coverage ratio (Based on regulatory provisions effective until December 31, 2021)	N/A	68.93	57.42	39.39	47.21
Provision coverage ratio (Based on SLFRS provisions)	7.32	5.94	5.38	3.89	3.27
Cost of risk of loans and advances	1.80	1.35	1.88	1.09	0.91
Open credit exposure ratio (Net exposure on NPCF as a % regulatory capital)	N/A	8.79	11.88	17.37	10.21
Open credit exposure ratio (Net exposure on NPCF as a % regulatory capital)	34.41	25.33	N/A	N/A	N/A
Earnings and profitability:
Net interest income to total operating income	61.51	70.69	66.15	71.51	70.56
Net fee and commission income to total operating income	14.67	12.86	12.35	15.59	15.95
Other income to total operating income	23.82	16.45	21.50	12.91	13.50
Operating expenses to gross income	12.68	17.96	16.99	17.10	17.00
Impairment charge to total operating income	53.78	27.02	28.67	16.76	13.46
Cost to income ratio (including taxes on financial services)	29.22	37.97	39.96	49.41	46.35
Cost to income ratio (excluding taxes on financial services)	26.29	31.61	33.95	38.51	36.85
Financial intermediation margin (Gross income to average assets)	12.59	8.73	9.59	11.05	11.28
Interest margin (Net interest income to average assets)	3.74	3.51	3.17	3.51	3.67
Return on assets (ROA) – before income tax	1.03	1.74	1.51	1.66	2.09
Return on assets (ROA) – after income tax	1.05	1.28	1.05	1.27	1.43
Return on equity (ROE)	12.46	14.66	11.28	13.54	15.56
Liquidity:
Statutory liquid assets ratio (Domestic Banking Unit) – (Current minimum requirement – 20%)	35.01	38.73	44.99	30.42	24.47
Statutory liquid assets ratio (Offshore Banking Unit) – (Current minimum requirement – 20%)	32.37	36.39	32.70	25.25	30.20
Liquidity Coverage Ratio (LCR) – Rupee – (Current minimum requirement – 90%)	405.91	425.97	599.38	158.79	236.20
Liquidity Coverage Ratio (LCR) – All currency – (Current minimum requirement – 90%)	293.91	242.52	422.86	224.74	238.69
Net Stable Funding Ratio (NSFR) – (Current minimum requirement – 90%)	173.58	157.47	157.49	137.05	139.18
CASA ratio (Current and Saving deposits as a % of total deposits)	38.36	47.83	42.72	37.10	37.55
Gross Loans and receivables to deposits ratio	63.71	74.75	74.87	87.39	90.56
Assets and funding structure:
Deposits to gross loans and receivables	156.96	133.78	133.56	114.43	110.43
Deposits to total assets	78.92	74.03	72.92	75.92	75.42
Borrowings to total assets	3.20	3.64	5.35	4.41	4.86
Equity to total assets	8.40	8.46	9.05	9.60	9.08

Segmental analysis

Personal Banking

• Highest contributor of the Group in terms of net interest income and net fee and commission income.
• Total operating income increased by 19.43% to Rs. 47.316 Bn. contributing almost 35% to the Group.
• Profit before tax increased by 32.80% to Rs. 16.427 Bn.
• Accounted for approximately one fourth of the assets of the Group as at end of 2022.

Rs. Bn.	2022	2021	Change	Change as a %
Net interest income	36.988	32.271	4.717	14.62
Foreign exchange profit	0.385	0.223	0.162	72.65
Net fee and commission income	9.214	6.469	2.745	42.43
Other income	0.729	0.655	0.074	11.30
Total operating income	47.316	39.618	7.698	19.43
Impairment charges and other losses	(8.602)	(9.209)	0.607	-6.59
Net operating income	38.714	30.409	8.305	27.31
Profit before tax	16.427	12.370	4.057	32.80
Segment assets	620.050	589.421	30.629	5.20

Corporate Banking

• Significant Increase was recorded in net interest income and net fee and commission income by 139.23% and 132.51%, respectively.
• Impairment charges and other losses increased by 168.42% to Rs. 24.928 Bn.
• A growth of 135.26% in total operating income.
• Accounted for approximately one fifth of the assets of the Group as at end of 2022.

Rs. Bn.	2022	2021	Change	Change as a %
Net interest income	20.629	8.623	12.006	139.23
Foreign exchange profit	0.121	0.133	(0.012)	-9.02
Net fee and commission income	8.017	3.448	4.569	132.51
Other income	(0.029)	0.011	(0.040)	-363.64
Total operating income	28.739	12.216	16.523	135.26
Impairment charges and other losses	(24.928)	(9.287)	(15.641)	168.42
Net operating income	3.810	2.928	0.882	30.12
Profit before tax	1.098	0.604	0.494	81.79
Segment assets	498.406	426.522	71.884	16.85

Dealing/Treasury

• A sharp increase in impairment charges by 540.94% mainly due to additional impairment provisions made o/a USD denominated Government Securities consequent to the downgrading of the sovereign rating of the country.
• Growth in assets by 22.64% mainly due to the increase of foreign currency denominated assets as a result of rupee depreciation and excess liquidity being invested in treasury related operations.
• Treasury navigated through the challenging context by conducting derivative transactions, exploring opportunities for overseas expansions, expanding networking sessions, and launching an online platform for foreign exchange transactions.

Rs. Bn.	2022	2021	Change	Change as a %
Net interest income	3.214	13.923	(10.709)	-76.92
Foreign exchange profit	(7.823)	5.696	(13.519)	-237.34
Net fee and commission income	0.008	0.018	(0.010)	-55.56
Other income	(1.343)	3.168	(4.511)	-142.39
Total operating income	(5.944)	22.806	(28.750)	-126.06
Impairment charges and other losses	(37.053)	(5.781)	(31.272)	540.94
Net operating income	(42.997)	17.025	(60.022)	-352.55
Profit before tax	(44.857)	14.391	(59.248)	-411.70
Segment assets	945.053	770.572	174.481	22.64

International operations

• Profit before tax increased by almost three times during 2022.
• A growth of 135.43% was recorded in the total operating income.
• Recorded highest exchange profit of Rs 8.752 Bn.
• The Bangladesh operation of the Bank made a noteworthy contribution of 91.65% of the profit before tax of international operations.
• Profit recorded by Commercial Bank of Maldives Private Limited for the year is the highest profit achieved by the Company in its 6-year history.
• The Bangladesh operation has become the best Regional Bank in performance in terms of deposits, advances and profitability.

Rs. Bn.	2022	2021	Change	Change as a %
Net interest income	14.051	6.913	7.138	103.25
Foreign exchange profit	8.757	1.959	6.798	347.01
Net fee and commission income	2.387	1.611	0.776	48.17
Other income	0.145	0.279	(0.134)	-48.03
Total operating income	25.339	10.763	14.576	135.43
Impairment charges and other losses	(1.091)	(0.477)	(0.614)	128.72
Net operating income	24.248	10.286	13.962	135.74
Profit before tax	17.424	6.412	11.012	171.74
Segment assets	422.835	254.416	168.419	66.20

NBFI, Real Estate and Services

• Highest contribution to the other sources of income of the Group.
• CBC Tech Solutions Limited was appointed as a retail partner by Lenovo which is a Fortune 500 technology company.
• CBC Tech was the first Sri Lankan company to import the Lenovo Think Centre Neo desktop computers powered by 12th generation Intel® Core™ processors in June 2022.

Rs. Bn.	2022	2021	Change	Change as a %
Net interest income	0.679	0.767	(0.088)	-11.47
Foreign exchange profit	0.002	–	0.002	N/A
Net fee and commission income	0.180	0.265	(0.085)	-32.08
Other income	1.369	1.069	0.300	28.06
Total operating income	2.230	2.100	0.130	6.19
Impairment charges and other losses	(0.249)	(0.386)	0.137	-35.49
Net operating income	1.981	1.714	0.267	15.58
Profit before tax	0.542	0.636	(0.094)	-14.78
Segment assets	14.566	13.386	1.180	8.82

Performance of the overseas operations, subsidiaries, and the associate

Performance of the Bangladesh Operations will have to be reviewed in the context of the Operating Context and Outlook .

Commercial Bank of Ceylon PLC (CBC) commenced its operations in Bangladesh (CBC Bangladesh) by acquiring the banking business of Credit Agricole Indosuez, a French multi-national Bank, in November 2003.

During the past 19 years of operations, CBC Bangladesh has established its position well above the other Regional Banks operating in the country with 20 operating units which includes 11 Branches, 1 Sub Branch, 6 SME Centers and 2 Offshore Banking Units.

As at end of 2022, CBC Bangladesh owned Twenty-four ATM machines (including seven in off-site locations). In addition, an Automated Banking Centre (ABC) comprising a real time Cash Deposit Machine, Cheque Deposit Machine, KIOSK machine and a digital signage has been established in its Motijheel Branch.

CBC Bangladesh has become the best Regional Bank in performance (deposits, advances and profitability) by providing excellent service and commitments focusing the following areas:

Corporate Banking: has established its name as a premier regional bank from the inception offering exceptional relationship banking to corporate banking customers, thereby expanding the corporate banking portfolio multi-fold.

Consumer Banking: has plans to become a preferred Retail, SME and Credit Cards provider for the target market through a superior IT platform and innovative products, helping it to achieve a healthy deposit mix with a strong savings base.

Treasury Management: Provides consistent and efficient fund management through superior expertise with diversified and novel treasury products.

Human Resources: one of the most preferred employers in the banking industry by providing excellent opportunities for training and development.

Digital Banking: introduced a technologically advanced Digital Banking Product branded e-passbook, which is unique in the country, PayMaster, for the corporate clients to ensure smooth daily operations. Also introduced Two Factor Authentication system for all online transactions without physical cards, e-statement & Over the air pin (OTAP) for Credit Cards and Internet Banking for Corporate and Retail Banking Customers with several new features.

At present, CBC Bangladesh has its presence in five main districts in the country i.e. Dhaka, Chittagong, Sylhet, Narayanganj and Gazipur. Despite the severe competition among the international and large local banks, CBC Bangladesh has recorded a consistent growth in its business volumes, specially by catering to multinationals and large local corporates by offering superior services and commitments. With the expansion of the branch network, CBC Bangladesh operations has managed to attract more SME and Retail clientele to the Bank, enabling it to improve its low cost deposit base resulting in lower cost of funds and improved profitability.

During 2022, CBC Bangladesh upgraded Internet Banking System with various new features and some of them are for the first time in Bangladesh. Several new initiatives such as e-Leave and e-Attendance Systems, revamping of Corporate Website, Call Centre Solution, integration with National Payment System Bangladesh (NPSB) etc. have been effected in addition to inclusion of several new features for existing products and services.

The progress of the CBC Bangladesh operations in core banking areas over the past five years is summarised below:

Table 25: Key Performances Indicators – Bangladesh Operations

Indicator	2022 BDT Mn.	2021 BDT Mn.	2020 BDT Mn.	2019 BDT Mn.	2018 BDT Mn.	5-Year CAGR (%)
Total deposit	71,243.10	64,959.50	50,997.50	45,362.98	35,221.65	19.85
Gross advances	51,561.50	58,110.88	55,039.33	47,449.60	38,448.10	9.93
Profit before tax	5,424.90	3,035.35	2,898.24	2,744.68	2,440.56	25.27
Profit after tax	2,954.40	1,744.11	1,709.47	1,697.40	1,407.23	24.48

Table 26: Key Financial Ratios – Bangladesh Operations (based on management accounts)

Indicator	2022	2021	2020	2019	2018
Cost/Income ratio (%)	16.47	23.68	24.76	24.74	25.27
Net interest margin (%)	4.05	3.21	4.01	4.27	4.53
Profit per employee (BDT Mn.)	16.95	10.25	9.96	8.65	8.16
ROA (%)	5.61	3.20	3.46	3.53	4.31
ROE (%)	17.95	12.24	13.32	14.82	13.97

 

Mr Najith Meewanage, CEO, Bangladesh, receiving the Top 10 Best Business Leaders Award

 

During the year 2022 too, the CBC Bangladesh won a number of awards and accolades including the following:

• Best Foreign Bank in Bangladesh – 2022 by Global Economic Limited, UK-based magazine for 3rd consecutive year.
• Most Recommended Foreign Bank in Bangladesh – 2022 by World Business Outlook, a Singapore-based magazine for 2nd consecutive year.
• Most Sustainable Bank in Bangladesh – 2022 by International Business Magazine, UAE for 2nd consecutive year
• Best Corporate Bank Bangladesh – 2022 by Global Business Review Magazine, UAE.
• Best Foreign Bank in Bangladesh – 2022 by World Economic Magazine, USA based magazine

One of the key events during the year was that Mr Najith Meewanage - Chief Executive Officer of the Bangladesh Operations being selected as one of the Top 10 Best Business Leaders in Bangladesh - 2022 by CEO Insights Magazine, India.

In addition, a special commendation letter was awarded by the Central Bank of Bangladesh for disbursing the full allocation of the stimulus package to the SME sector during the year 2022 as well while another special award was awarded by the Large Tax Payer Unit (LTU) of National Board of Revenue (NBR), Bangladesh for being one of the highest tax payers of the country.

Meanwhile, the Credit Rating Information and Services Ltd. (CRISL) rated CBC Bangladesh operations AAA for the 12th consecutive year based on the financial performance for 2021.

Subsidiaries and associate of the Group

Given below is a brief overview of the operations of the subsidiaries and the associate of the Bank.

Local subsidiaries

Commercial Development Company PLC (CDC)

Established in 1980 as the Bank’s first subsidiary, CDC owns the Head Office building of Commercial Bank, “Commercial House”, and has two other properties in Negombo and Tangalle. The Bank holds a stake of 90% in CDC.

CDC is the only listed Subsidiary of the Group, with a market capitalisation of Rs. 1.146 Bn. as of end 2022 (2021: Rs. 1.632 Bn). The principal business activities of CDC include renting of premises, hiring of vehicles, outsourcing of non-core staff and provision of other utility services to the Bank.

CDC recorded a post-tax profit of Rs. 224.378 Mn. for the year 2022, compared to Rs. 401.506 Mn. reported in 2021. The drop in profits was mainly due to increase in deferred tax provision on the cumulative fair value gains recognised on Investment Property consequent to the increase in the corporate tax rate to 30% from 24%. The income from core business activities of the Company amounted to Rs. 631.128 Mn. which reflected marginal drop of 0.18%, while the profit before tax for the year amounted to Rs. 401.289 Mn., compared to Rs. 427.265 Mn., recorded for 2021, primarily due to a reduction in the fair value gains on investment properties of Rs. 24.629 Mn. The total assets of the Company crossed the Rs. 4 Bn., mark and stood at Rs.4.055 Bn., as at end of 2022 compared to Rs. 3.785 Bn., as at end 2021.

CBC Tech Solutions Limited

CBC Tech Solutions Limited is a fully owned subsidiary of the Bank and provides Information Technology services and solutions to the Bank, its subsidiaries and to a few selected corporates.

The main lines of business of CBC Tech Solutions are providing Information Technology support, supply of hardware, licensed software, hardware maintenance, Point of Sale (POS) maintenance, software development, and outsourcing of professional and skilled manpower to the Bank.

At present, the Company operates from five regional support centers in Colombo, Galle, Kandy, Jaffna and Badulla to ensure prompt services.

During 2022, the Company continued with its island wide Personal computer/server maintenance, Point of Sales machines troubleshooting, and first level technical support for the Bank. Furthermore, the Company embarked on new service line by undertaking the maintenance of Passbook printers to further strengthen the bottom line during the year. The Software development unit completed many projects, developed a few customer centric products, and also penetrated in to several foreign customers in 2022. The Company further upskilled its employees and outsourced them to the subsidiaries of the Bank.

The Company was appointed as a retail partner by Lenovo which is a Fortune 500 technology company. Consequent to this partnership, the Company is an agent for Lenovo’s range of personal computers, tablets and accessories, including the IdeaPad, Yoga, Legion and ThinkPad series. Notably, CBC Tech was the first Sri Lankan company to import the Lenovo Think Centre Neo desktop computers powered by 12th generation Intel® Core™ processors in June 2022.

The Company recorded a total revenue of Rs. 647.408 Mn., for the year 2022, with a growth of 82.72% compared to Rs. 354.303 Mn., recorded in 2021. The substantial growth in income was mainly due to the higher hardware sales. The pre-tax profit of the Company for the year stood at Rs.186.761 Mn., as against Rs. 156.761 Mn., reported in 2021, which recorded a growth of 19.14%. The post-tax profit amounted to Rs. 171.725 Mn., for the year 2022 compared to Rs. 181.134 Mn., reported for 2021, a drop of 5.19%. However, after discounting for the effect of drop in taxes which was accounted in 2021, based on the normalised profit for 2021, the Company recorded a growth 12.99% in 2022. The Company aims to emerge as one of the leading innovative ICT solutions providers in Sri Lanka, having a mission to deliver the most reliable, customer-centric ICT products and services to drive technological innovations.

CBC Finance Limited (CBCF)

CBC Finance Ltd (CBCF) is a fully owned subsidiary of the Bank and is a Licensed Finance Company (LFC) under the Finance Business Act No. 42 of 2011. After changing the brand name from Serendib Finance Ltd to CBC Finance Ltd, the Company embarked on an aggressive image-enhancing campaign and further strengthened the governance structure and synergies with the parent Company, Commercial Bank of Ceylon PLC.

The unprecedented macroeconomic conditions that prevailed during the year exerted tremendous pressure on the entire finance industry, making it very challenging for all our customers, irrespective of their ticket size. Nevertheless, the Company was able to increase its gross income for 2022 by 29% to Rs. 1.636 Bn. However, there was a substantial impact from the increased cost of funds from Rs. 443 Mn., in 2021 to Rs. 986 Mn., in 2022. Consequently, the Company’s net operating income decreased from Rs. 431 Mn., in 2021 to Rs. 390 Mn. for the current year. The other operating income increased to Rs. 61 Mn., in 2022 from Rs. 50 Mn., in 2021. However, the Profit for the year decreased to Rs. 39 Mn., compared to the figure of Rs. 51 Mn., last year due to the prudent provisions made considering the high-risk segments of the portfolio. The drive for the canvassing of deposits continued with stiff competition, and the year-end portfolio stood at Rs. 5.116 Bn., due to timely measures taken for retaining deposit liabilities with minor cost impact to the bottom line.

While accepting the challenge of growing the portfolios in an unprecedented market, the Company’s total assets increased to Rs.10.954 Bn., from Rs. 10.311 Bn., recorded for 2021, mainly due to its core product - finance leasing business growing to Rs. 2.129 Bn., from Rs. 1.771 Bn., in 2021. The Company’s Gross NPA ratio of 16.98% was on par with the industry.

During the year, the Company relocated Kaduruwela Branch to provide a better customer experience. In addition, with the approval granted by the Central Bank of Sri Lanka to open ten new branches, the Company expanded the delivery channels by opening branches in Trincomalee, Vavuniya and Batticaloa and is planning to open another three branches in the year 2023 in strategically important business areas to enhance its presence.

Commercial Insurance Brokers (Pvt) Ltd. (CIBL)

The Bank has a stake in CIBL of 60%. The principal business activity of CIBL is insurance brokering for all types of insurance through reputed life and general insurance companies in Sri Lanka.

CIBL recorded a post-tax profit of Rs. 32.435 Mn. for the year ended December 31, 2022, with a growth of 7.09% compared to Rs. 30.286 Mn. recorded in 2021. The CIBL’s total assets stood at Rs. 720.928 Mn. as at December 31, 2022, compared to the total assets of Rs. 705.396 Mn., a year ago.

Local associate

Equity Investments Lanka Ltd. (EQUILL)

The Bank owns a 22.92% stake in EQUILL, a venture capital company established 32 years ago. EQUILL invests in equity and equity-featured debt instruments.

The Company recorded a loss of Rs 16.263 Mn. in 2022 as against the post-tax profit of Rs. 8.272 Mn. reported in 2021.

Foreign subsidiaries

Commercial Bank of Maldives Private Limited (CBM)

In partnership with Tree Top Investments (TTI), CBM was founded in the Republic of Maldives as the second foreign subsidiary of the Bank. TTI contributes vital local market knowledge to the Company and has a stake of 45%, while the Bank holds a 55% stake in the Company. Established during the latter part of 2016, CBM set up its Head Office and first branch in the capital, Malé and by end of 2017, CBM opened its second branch in Hulhumale.

While offering an extensive range of financial services, CBM’s vision is “to be the trusted financial service provider for growth, delivering excellence in service quality”. CBM is seen as the most technologically advanced, innovative, customer friendly, and the most sought-after financial service organisation in the Republic of Maldives.

CBM has invested heavily on its Open Banking project during the year 2022 and wishes to maximise the usage of interoperability capabilities in the platform by developing the most advanced App in the market, once the services are launched in 2023.

By end of December 31, 2022, CBM managed to increase its total deposit base to MVR 2,542.4 Mn., from MVR 1,993.4 Mn., as at end December 31, 2021, which is a growth of MVR 549.0 Mn or 27.54%. Further, during the year CBM managed to increase its loans and advances portfolio by MVR 195.1 Mn., or by 33.09% and it stood at MVR 785.6 Mn., as at December 31, 2022, compared to MVR 589.7 Mn., a year ago.

During the year 2022, CBM recorded a post-tax profit of MVR 53.75 Mn., compared to the post-tax profit of MVR 32.84 Mn. reported in 2021. Profit recorded in the current year is the highest profit achieved by the Company in the operation of its 6-year history.

 

CBC Myanmar Microfinance Company (CBC Myanmar)

CBC Myanmar was established in July 2018 with the opening of its Head Office and a branch in Lewe Township in Nay Pyi Taw as a fully owned subsidiary of the Bank with the focus of capitalising on opportunities in the Microfinance sector. After securing a permanent business license in 2021, the Company expanded its operations to Aye Lar, Zabuthiri, and Pyinmana townships.

Myanmar economy was projected to grow by 3% following a 18% contraction in 2021. The GDP for 2022 estimated to be around 13% but still lower than the GDP recorded for 2019.

The CBC Myanmar started the year with 80% of its portfolio in Portfolio at Risk (PAR). As a result of persistent recovery actions throughout the year, the Company was able to achieve a PAR of 27.7% towards the year-end while the industry PAR was well above 30%.

In November 2022, CBC Myanmar managed to obtain a credit facility of MMK 1.5 Bn., through United Amara Bank of Myanmar against a Standby Letter of Credit facility of USD 1 Mn., issued by the parent company to maintain credit growth as further capital infusion was not possible.

Overall, the Company was able increase its interest income substantially with improvement of portfolio quality and with a gradual growth in the loan book. However, the break-even target of the Company got further delayed due to sharp currency depreciation as a significant portion of Company’s expenses are paid in USD.

A special provision of MMK 398.86 Mn., (USD 189,932) was made as measure of prudency above the regulatory requirements to meet possible write offs in ensuing months for the loans in arrears during the period of pandemic and political instability.

The Company disbursed MMK 3.7 Bn. in new loans during 2022 despite the challenges in the operating environment and reported a loss of MMK 333Mn. during the financial year ended December 31, 2022 compared to a profit of MMK 247 Mn. during the previous financial year. Identifying the need for digital platforms to facilitate recoveries, the Company has initiated to partner with leading digital wallet share providers.

The Company is optimistic that the current economic conditions would gradually improve enabling the Company to enter in to profit zone in the second half of 2023. The Company has planned to expand into another region and also to open more branches in the Nay Pyi Taw region if the conditions improve in 2023.

Commex Sri Lanka S.R.L. (Commex)

Commex, a fully-owned subsidiary of the Bank, commenced business under the Authorised Payments Institute (API) license issued by the Bank of Italy in 2016. However, during the year 2022, the Board of Directors of Commex decided to voluntarily liquidate the Company owing to the economic impact of COVID-19 and announcement to that effect was made by the Bank to the Colombo Stock exchange. During the year 2022, Commex recorded a loss of Rs.19.804 Mn.

The details of the Group companies together with a summary of key financial information for each company is given in the section on “Group Structure”.

Summary of Interim Financial Statements Income Statement – Group and Bank – 2022 and 2021

	1st Quarter ended March 31		2nd Quarter ended June 30		3rd Quarter ended September 30		4th Quarter ended December 31		Total
	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021
	Rs. ’000	Rs. ’000	Rs. ’000	Rs. ’000	Rs. ’000	Rs. ’000	Rs. ’000	Rs. ’000	Rs. ’000	Rs. ’000
Group
Net interest income	18,823,025	15,476,721	21,889,560	15,681,311	22,101,235	16,375,248	21,851,391	18,883,052	84,665,211	66,416,332
Net fee and commission income	4,087,687	3,023,322	4,789,815	2,688,925	5,035,555	2,884,472	6,256,044	3,645,475	20,169,101	12,242,194
Other operating income (net)	11,333,380	5,660,582	8,308,652	3,813,475	7,468,511	3,347,432	4,691,792	2,118,308	31,802,335	14,939,797
Less: Impairment charges and other losses	5,960,556	7,156,050	29,258,063	6,498,391	17,052,988	4,342,977	19,652,653	7,142,508	71,924,260	25,139,926
Net operating income	28,283,536	17,004,575	5,729,964	15,685,320	17,552,313	18,264,175	13,146,574	17,504,327	64,712,387	68,458,397
Less: Expenses	11,875,805	8,600,269	8,758,423	8,336,383	8,893,074	8,950,689	10,676,320	9,615,628	40,203,622	35,502,969
Operating profit	16,407,731	8,404,306	(3,028,459)	7,348,937	8,659,239	9,313,486	2,470,254	7,888,699	24,508,765	32,955,428
Add: Share of profits/(losses) of associate companies	(1,869)	(133)	(1,607)	546	1,220	(330)	(1,471)	1,813	(3,727)	1,896
Profit before income tax	16,405,862	8,404,173	(3,030,066)	7,349,483	8,660,459	9,313,156	2,468,783	7,890,512	24,505,038	32,957,324
Less: Income tax expense	4,631,158	1,606,916	(433,112)	1,793,203	2,377,804	2,649,350	(6,470,284)	2,617,567	105,566	8,667,036
Profit for the period	11,774,704	6,797,257	(2,596,954)	5,556,280	6,282,655	6,663,806	8,939,067	5,272,945	24,399,472	24,290,288
Quarterly profit as a percentage of the profit after tax	48.3	28.0	(10.6)	22.9	25.7	27.4	36.6	21.7	100.0	100.0
Cumulative quarterly profit as a percentage of the profit after tax	48.3	28.0	37.6	50.9	63.4	78.3	100.0	100.0	–	–
Bank
Net interest income	18,294,991	15,051,903	21,131,976	15,226,162	21,283,570	15,934,934	21,033,493	18,397,613	81,744,030	64,610,612
Net fee and commission income	3,962,233	2,886,892	4,618,230	2,570,984	4,882,230	2,803,989	6,028,575	3,489,598	19,491,268	11,751,463
Other operating income (net)	11,355,289	5,692,641	8,308,491	3,806,422	7,484,902	3,345,805	4,504,448	2,187,582	31,653,130	15,032,450
Less: Impairment charges and other losses	5,869,091	7,052,038	29,091,260	6,306,004	16,951,155	4,261,500	19,550,116	7,072,801	71,461,622	24,692,343
Net operating income	27,743,422	16,579,398	4,967,437	15,297,564	16,699,547	17,823,228	12,016,400	17,001,992	61,426,806	66,702,182
Less: Expenses	11,654,722	8,396,219	8,480,267	8,061,141	8,626,581	8,818,226	10,066,851	9,425,393	38,828,421	34,700,979
Profit before income tax	16,088,700	8,183,179	(3,512,830)	7,236,423	8,072,966	9,005,002	1,949,549	7,576,599	22,598,385	32,001,203
Less: Income tax expense	4,541,083	1,525,107	(557,428)	1,760,639	2,226,823	2,533,250	(6,581,884)	2,576,156	(371,406)	8,395,152
Profit for the period	11,547,617	6,658,072	(2,955,402)	5,475,784	5,846,143	6,471,752	8,531,433	5,000,443	22,969,791	23,606,051
Quarterly profit as a percentage of the profit after tax	50.3	28.2	(12.9)	23.2	25.5	27.4	37.1	21.2	100.0	100.0
Cumulative quarterly profit as a percentage of the profit after tax	50.3	28.2	37.4	51.4	62.9	78.8	100.0	100.0	–	–

Statement of Financial Position – Group – 2022 and 2021

	1st Quarter ended		2nd Quarter ended		3rd Quarter ended		4th Quarter ended
As at	March 31, 2022 Rs. ’000	March 31, 2021 Rs. ’000	June 30, 2022 Rs. ’000	June 30, 2021 Rs. ’000	September 30, 2022 Rs. ’000	September 30, 2021 Rs. ’000	December 31, 2022 (Audited) Rs. ’000	December 31, 2021 (Audited) Rs. ’000
Assets
Cash and cash equivalents	139,725,913	51,995,270	107,999,772	67,888,744	117,183,269	93,000,346	151,109,490	69,335,379
Balances with Central Banks	87,849,345	79,603,760	51,501,124	84,715,615	60,156,210	49,431,255	78,597,120	56,777,465
Placements with banks	5,882,556	13,834,678	18,313,838	7,625,796	57,528,580	20,218,425	96,082,937	12,498,709
Securities purchased under re-sale agreements	1,756,293	–	2,002,143	–	–	2,697,359	1,517,308	3,000,490
Derivative financial assets	24,426,913	3,633,738	23,674,635	3,105,697	8,336,323	3,271,766	8,345,091	3,245,120
Financial assets recognised through profit or loss – measured at fair value	25,090,307	25,982,011	54,201,704	34,171,453	42,638,708	31,522,053	24,873,057	23,436,123
Financial assets at amortised cost – Loans and advances to banks	–	829,740		837,037		833,952
Financial assets at amortised cost – Loans and advances to other customers	1,158,500,812	929,618,154	1,219,947,845	971,894,929	1,159,104,807	999,913,656	1,155,492,527	1,029,584,075
Financial assets at amortised cost – Debt and other financial instruments	451,890,370	350,832,246	770,170,847	375,044,696	744,530,469	356,179,525	761,650,234	385,390,598
Financial assets measured at fair value through other comprehensive income	316,414,558	315,079,615	71,383,043	335,866,978	108,526,607	345,560,552	118,652,257	335,953,802
Investments in subsidiaries	–	–	–	–	–	–	–	-
Investment in associate	57,656	63,111	55,628	63,749	57,053	63,096	55,302	60,428
Property, plant and equipment and right-of-use assets	25,535,145	25,674,949	25,830,332	25,232,279	25,881,016	25,001,485	27,446,607	24,744,634
Investment properties	72,400	67,116	72,400	67,900	72,400	67,900	80,350	72,400
Intangible assets	2,505,708	1,914,792	2,653,532	1,868,300	3,303,890	2,047,091	4,113,200	2,272,639
Leasehold property	–	–	–	–	–	–	–	-
Deferred tax assets	16,467,507	4,187,627	15,604,218	5,173,206	18,688,275	8,052,166	30,727,213	10,036,105
Other assets	30,384,439	20,983,814	40,069,160	21,168,312	44,293,042	24,600,114	40,811,211	27,083,177
Total assets	2,286,559,922	1,824,300,621	2,403,480,221	1,934,724,691	2,390,300,649	1,962,460,741	2,499,553,904	1,983,491,144
Liabilities
Due to banks	78,825,477	80,049,153	64,607,923	103,006,874	65,021,690	80,540,568	64,971,170	73,801,195
Derivative financial liabilities	13,445,927	4,388,511	8,640,775	2,609,946	4,350,184	3,017,891	2,880,667	2,092,198
Securities sold under repurchase agreements	168,475,481	96,228,787	214,906,611	113,577,165	129,659,272	132,578,610	97,726,435	151,424,854
Financial liabilities at amortised cost – Due to depositors	1,706,467,472	1,346,539,936	1,756,807,475	1,405,045,018	1,853,469,051	1,447,888,478	1,977,743,661	1,472,640,456
Financial liabilities at amortised cost – Other borrowings	32,042,811	52,098,343	30,611,911	50,377,494	20,905,990	46,167,470	16,150,356	32,587,051
Current tax liabilities	13,745,921	7,588,842	17,887,416	8,775,280	19,391,280	8,737,272	24,916,074	9,486,772
Deferred tax liabilities	348,851	344,928	348,867	344,335	349,849	343,822	437,123	349,106
Other liabilities	52,266,429	39,132,442	57,394,541	46,354,848	41,904,727	31,862,811	40,354,877	33,253,518
Due to subsidiaries	–	–	–	–	–	–	–	-
Subordinated liabilities	45,117,068	34,239,946	50,868,395	34,704,218	50,935,604	43,363,999	61,400,967	38,303,466
Total liabilities	2,110,735,437	1,660,610,888	2,202,073,914	1,764,795,178	2,185,987,647	1,794,500,921	2,286,581,330	1,813,938,616
Equity
Stated capital	58,149,621	54,564,038	58,149,621	54,565,350	58,149,621	54,565,494	58,149,621	54,566,957
Statutory reserves	10,590,338	9,287,728	10,590,338	9,287,728	10,590,338	9,287,728	12,079,670	10,590,338
Retained earnings	12,625,944	7,254,535	4,689,644	12,848,919	10,795,707	19,680,594	6,790,304	9,890,762
Other reserves	91,496,084	90,696,736	124,232,206	91,273,009	120,834,984	82,402,906	131,845,571	92,426,660
Total equity attributable to equity holders of the Group/Bank	172,861,987	161,803,037	197,661,809	167,975,006	200,370,650	165,936,722	208,865,166	167,474,717
Non-controlling interest	2,962,498	1,886,696	3,744,498	1,954,507	3,942,352	2,023,098	4,107,408	2,077,811
Total equity	175,824,485	163,689,733	201,406,307	169,929,513	204,313,002	167,959,820	212,972,574	169,552,528
Total liabilities and equity	2,286,559,922	1,824,300,621	2,403,480,221	1,934,724,691	2,390,300,649	1,962,460,741	2,499,553,904	1,983,491,144
Contingent liabilities and commitments	859,963,467	800,865,904	723,286,189	744,326,170	600,709,801	674,796,325	555,531,537	685,379,028
Net assets value per ordinary share (Rs.)	139.43	135.49	159.43	140.66	161.62	138.95	168.47	140.24
Quarterly growth (%)
Financial assets at amortised cost – Loans and advances to banks & loans and advances to other customers	12.52	2.18	5.30	4.55	–4.99	2.88	–0.31	2.97
Financial liabilities at amortised cost – Due to depositors	15.88	4.66	2.95	4.34	5.50	3.05	6.70	1.71
Total assets	15.28	3.51	5.11	6.05	–0.55	1.43	4.57	1.07

Statement of Financial Position – Bank – 2022 and 2021

	1st Quarter ended		2nd Quarter ended		3rd Quarter ended		4th Quarter ended
As at	March 31, 2022 Rs. ’000	March 31, 2021 Rs. ’000	June 30, 2022 (Audited) Rs. ’000	June 30, 2021 (Audited) Rs. ’000	September 30, 2022 Rs. ’000	September 30, 2021 Rs. ’000	December 31, 2022 (Audited) Rs. ’000	December 31, 2021 (Audited) Rs. ’000
Assets
Cash and cash equivalents	138,554,687	50,223,404	106,644,408	66,211,229	115,987,885	91,478,737	149,393,611	68,078,076
Balances with Central Banks	81,086,848	76,341,432	45,197,919	80,197,728	50,225,992	45,873,467	66,493,499	52,897,908
Placements with banks	4,580,100	13,313,090	17,327,567	7,082,629	56,536,485	19,265,858	95,899,645	11,584,952
Securities purchased under re-sale agreements	1,756,293	–	2,002,143	–	–	2,697,359	1,517,308	3,000,490
Derivative financial assets	24,426,913	3,633,738	23,674,635	3,105,697	8,336,323	3,271,766	8,345,091	3,245,120
Financial assets recognised through profit or loss – measured at fair value	25,090,307	25,982,011	54,201,704	34,171,453	42,638,708	31,522,053	24,873,057	23,436,123
Financial assets at amortised cost – Loans and advances to banks		829,740		837,037		833,952
Financial assets at amortised cost – Loans and advances to other customers	1,139,304,710	916,062,889	1,197,683,170	957,384,317	1,136,121,535	984,845,846	1,130,442,579	1,014,618,580
Financial assets at amortised cost – Debt and other financial instruments	424,805,507	337,216,097	730,882,224	361,301,611	708,272,738	342,169,712	725,935,299	369,417,889
Financial assets measured at fair value through other comprehensive income	315,781,767	314,567,633	69,648,186	335,862,629	106,976,948	345,250,606	117,056,240	335,463,338
Investments in subsidiaries	5,808,429	5,808,429	5,808,429	5,808,429	5,808,429	5,808,429	5,808,429	5,808,429
Investment in associate	44,331	44,331	44,331	44,331	44,331	44,331	44,331	44,331
Property, plant and equipment and right-of-use assets	23,719,230	23,997,196	23,872,579	23,544,270	23,852,100	23,246,255	25,425,452	23,075,467
Investment properties	–	–	–	–	–	–	–	–
Intangible assets	1,941,213	1,330,727	2,084,157	1,311,076	2,745,081	1,494,505	3,563,120	1,724,864
Leasehold property	–	–	–	–	–	–	–	–
Deferred tax assets	16,169,713	3,971,770	15,274,931	4,917,109	18,355,515	7,772,486	30,301,203	9,793,129
Other assets	30,285,171	20,879,920	39,964,157	21,108,274	44,160,287	24,542,510	40,699,168	27,024,475
Total assets	2,233,355,219	1,794,202,407	2,334,310,540	1,902,887,819	2,320,062,357	1,930,117,872	2,425,798,032	1,949,213,171
Liabilities
Due to banks	78,898,400	79,383,054	64,643,031	102,474,262	65,126,753	80,362,973	65,130,061	73,777,420
Derivative financial liabilities	13,445,927	4,388,511	8,640,775	2,609,946	4,350,184	3,017,891	2,880,667	2,092,198
Securities sold under repurchase agreements	168,582,810	96,267,906	215,162,077	114,066,400	129,837,305	133,030,525	97,726,435	151,911,842
Financial liabilities at amortised cost – Due to depositors	1,660,680,484	1,321,759,956	1,696,848,972	1,378,167,491	1,792,802,024	1,420,186,722	1,914,359,494	1,443,093,453
Financial liabilities at amortised cost – Other borrowings	32,042,811	52,098,343	30,611,911	50,377,494	20,905,990	46,167,470	16,150,356	32,587,051
Current tax liabilities	13,482,706	7,381,495	17,505,583	8,532,714	19,124,762	8,508,147	24,475,319	9,294,180
Deferred tax liabilities	–	–	–	–	–	–	–	–
Other liabilities	52,002,171	39,067,270	57,008,590	46,172,569	41,461,508	31,794,069	39,860,573	33,210,883
Due to subsidiaries	86,493	96,676	115,191	98,567	96,295	80,785	115,484	48,699
Subordinated liabilities	45,117,068	34,239,946	50,868,395	34,704,218	50,935,604	43,363,999	61,400,967	38,303,466
Total liabilities	2,064,338,870	1,634,683,157	2,141,404,525	1,737,203,661	2,124,640,425	1,766,512,581	2,222,099,356	1,784,319,192
Equity
Stated capital	58,149,621	54,564,038	58,149,621	54,565,350	58,149,621	54,565,494	58,149,621	54,566,957
Statutory reserves	10,204,368	9,024,065	10,204,368	9,024,065	10,204,368	9,024,065	11,352,858	10,204,368
Retained earnings	11,626,483	6,637,622	3,647,706	12,200,306	9,504,182	18,916,233	5,592,121	9,028,265
Other reserves	89,035,877	89,293,525	120,904,320	89,894,437	117,563,761	81,099,499	128,604,076	91,094,389
Total equity attributable to equity holders of the Group/Bank	169,016,349	159,519,250	192,906,015	165,684,158	195,421,932	163,605,291	203,698,676	164,893,979
Non-controlling Interest	–	–	–	–	–	–	–	–
Total equity	169,016,349	159,519,250	192,906,015	165,684,158	195,421,932	163,605,291	203,698,676	164,893,979
Total liabilities and equity	2,233,355,219	1,794,202,407	2,334,310,540	1,902,887,819	2,320,062,357	1,930,117,872	2,425,798,032	1,949,213,171
Contingent liabilities and commitments	857,057,146	798,522,243	719,729,198	740,650,015	596,546,623	672,716,776	549,421,699	682,399,783
Net assets value per ordinary share (Rs.)	136.33	133.58	155.60	138.74	157.63	137.00	164.30	138.08
Quarterly growth (%)
Financial assets at amortised cost – Loans and advances to banks & loans and advances to other customers	12.29	2.14	5.12	4.51	–5.14	2.87	–0.50	3.02
Financial liabilities at amortised cost – Due to depositors	15.08	4.41	2.18	4.27	5.65	3.05	6.78	1.61
Total assets	14.58	3.34	4.52	6.06	–0.61	1.43	4.56	0.99

Decade at a Glance

			SLFRSs			SLFRSs		LKASs
As at December 31, Rs. Mn.	CAGR %		2022	2021	2020	2019	2018	2017	2016	2015	2014	2013
Assets
Cash and cash equivalents			149,394	68,078	50,251	52,535	39,534	33,225	30,194	20,044	20,592	14,262
Balances with Central Banks			66,493	52,898	110,971	39,461	54,385	44,801	43,873	28,221	19,634	18,432
Placements with banks			95,900	11,585	15,939	24,527	19,899	17,633	11,718	17,194	14,508	4,132
Securities purchased under resale agreements			1,517	3,000	–	13,148	9,514	–	–	8,002	41,198	8,946
Derivative financial assets			8,345	3,245	2,637	1,831	7,910	2,335	1,053	4,118	460	838
Other financial instruments – Held for trading			–	–	–	–	–	4,411	4,988	7,656	6,327	6,379
Financial assets recognised through profit or loss – Measured at fair value			24,873	23,436	35,189	21,468	5,520	–	–	–	–	–
Loans and receivables to banks	12.84		–	–	–	–	–	641	624	601	551	546
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	405,431	353,062
Financial assets at amortised cost – Loans and advances to other customers			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	50,436	48,943
Financial assets at amortised cost – Debt and other financial instruments			725,935	369,418	292,728	101,145	83,855	–	–	–	–	–
Financial investments – Available for sale			–	–	–	–	–	154,714	160,023	204,244	214,208	131,757
Financial assets measured at fair value through other comprehensive income			117,056	335,463	278,461	197,568	176,507	–	–	–	–	–
Total financial assets			2,319,956	1,881,742	1,683,801	1,337,087	1,258,987	1,107,482	981,296	855,919	773,345	587,297
Investments in subsidiaries			5,808	5,808	5,808	5,011	4,264	3,066	2,435	1,237	1,211	289
Investment in associate			44	44	44	44	44	44	44	44	44	44
Property, plant & equipment and right-of-use assets			25,425	23,075	23,212	20,507	15,301	14,635	10,308	9,969	9,953	8,387
Intangible assets			3,563	1,725	1,233	1,080	906	777	641	466	439	468
Leasehold property			–	–	–	–	72	73	74	74	75	76
Deferred tax assets			30,301	9,793	2,500	294	–	–	964	–	–	–
Other assets			40,699	27,024	19,620	23,323	23,911	17,297	16,439	12,096	10,543	9,426
Total assets	16.84		2,425,798	1,949,213	1,736,218	1,387,346	1,303,485	1,143,374	1,012,201	879,805	795,610	605,987
Liabilities
Due to banks			65,130	73,777	87,451	51,506	50,101	57,121	67,609	30,319	25,261	14,194
Derivative financial liabilities			2,881	2,092	1,501	1,495	8,022	3,678	1,515	1,891	1,193	1,412
Securities sold under repurchase agreements			97,726	151,912	91,438	51,220	49,104	49,677	69,867	112,385	124,564	45,519
Due to other customers/deposits from customers	17.23		–	–	–	–	–	850,128	739,563	624,102	529,361	451,153
Financial liabilities at amortised cost – Due to depositors			1,914,359	1,443,093	1,265,966	1,053,308	983,037	–	–	–	–	–
Other borrowings			–	–	–	–	–	23,786	9,270	9,986	11,637	8,654
Financial liabilities at amortised cost – Other borrowings			16,150	32,587	54,556	23,249	25,362	–	–	–	–	–
Current tax liabilities			24,475	9,294	6,778	4,968	6,566	4,144	3,441	3,002	1,998	1,759
Deferred tax liabilities			–	–	–	–	646	3,275	–	231	2,574	1,563
Other provisions			–	–	–	–	–	–	2	2	2	2
Other liabilities			39,861	33,211	33,038	30,497	24,208	19,225	17,710	15,547	17,444	9,827
Due to subsidiaries			115	49	97	54	41	75	20	26	19	16
Subordinated liabilities			61,401	38,303	38,247	37,887	37,992	25,166	24,850	11,973	11,045	10,944
Total liabilities			2,222,099	1,784,319	1,579,072	1,254,184	1,185,079	1,036,275	933,847	809,464	725,098	545,043
Equity
Stated capital			58,150	54,567	52,188	40,917	39,148	37,144	24,978	23,255	21,458	19,587
Statutory reserves			11,353	10,204	9,024	8,205	7,354	6,477	5,648	4,922	4,327	4,035
Retained earnings			5,592	9,028	7,596	5,144	5,063	4,987	4,464	4,389	4,258	4,233
Other reserves			128,604	91,094	88,338	78,896	66,841	58,491	43,264	37,775	40,469	33,089
Total liabilities and equity	16.84		2,425,798	1,949,213	1,736,218	1,387,346	1,303,485	1,143,374	1,012,201	879,805	795,610	605,987
Contingent liabilities and commitments			549,422	682,400	728,712	579,999	658,722	564,795	498,305	521,232	352,453	295,452

 

			SLFRSs			SLFRSs		LKASs
For the year ended December 31, Rs. Mn.	CAGR %		2022	2021	2020	2019	2018	2017	2016	2015	2014	2013
Operating results
Gross income	15.82		275,444	160,886	149,711	148,706	138,049	114,357	93,143	77,868	72,753	73,736
Interest income			218,327	130,443	122,330	127,780	117,466	103,034	80,738	66,030	61,832	62,764
Interest expense			(136,583)	(65,832)	(72,759)	(80,571)	(72,524)	(64,011)	(47,915)	(35,685)	(34,610)	(36,879)
Foreign exchange profit			31,120	10,589	8,338	6,726	7,900	588	2,326	2,877	1,481	1,996
Net Commission and other income			20,024	16,195	17,031	12,082	10,845	9,169	8,951	8,059	8,677	8,349
Operating expenses, impairment and taxes on financial services			(110,290)	(59,394)	(51,429)	(43,678)	(38,096)	(25,597)	(24,049)	(24,138)	(21,644)	(21,720)
Profit before tax	4.69		22,598	32,001	23,511	22,339	25,591	23,183	20,051	17,143	15,736	14,510
Income tax expense			372	(8,395)	(7,138)	(5,314)	(8,047)	(6,602)	(5,539)	(5,240)	(4,556)	(4,065)
Profit for the year	8.57		22,970	23,606	16,373	17,025	17,544	16,581	14,512	11,903	11,180	10,445
Ratios
Return on average-shareholders’ funds (%)			12.46	14.66	11.28	13.54	15.56	17.88	19.52	16.90	17.01	18.40
Income growth (%)			71.20	7.46	0.68	7.72	20.72	24.10	19.62	7.03	0.96	16.31
Return on average assets (%)			1.05	1.28	1.05	1.27	1.43	1.54	1.53	1.42	1.60	1.87
Ordinary share dividend cover (times)			4.12	2.64	2.34	2.55	2.67	2.62	2.25	2.09	1.99	1.89
Advances to deposits and refinance (%)			63.30	73.54	72.96	86.74	86.96	86.07	82.69	80.84	75.89	77.48
Property, plant and equipment and intangible assets to shareholders’ funds (%)			14.23	15.04	15.56	16.21	13.75	14.46	14.07	14.94	14.85	14.65
Total assets to shareholders’ funds (times)			11.91	11.82	11.05	10.42	11.01	10.68	12.92	12.51	11.28	9.94
Capital funds to liabilities including contingent liabilities (%)			7.35	6.68	6.81	7.26	6.42	6.69	5.47	5.29	6.54	7.25
Cost/income ratio (%)			29.22	37.97	39.96	49.41	46.35	51.08	51.06	48.92	49.26	45.59
Liquid assets ratio – Domestic Banking Unit (DBU) (%)			35.01	38.73	44.99	30.42	24.47	27.28	27.19	26.24	33.15	33.66
Liquid assets ratio – Offshore Banking Centre (OBC) (%)			32.37	36.39	32.70	25.25	30.20	30.95	30.19	49.13	31.43	29.38
(As specified in the Banking Act No. 30 of 1988)
Group capital adequacy (%) (under Basel II) Tier I			N/A	N/A	N/A	N/A	N/A	N/A	11.59	11.55	13.07	13.30
Tier I & II			N/A	N/A	N/A	N/A	N/A	N/A	16.01	14.28	16.22	16.93
Group capital adequacy (%) (under Basel III)
Common equity Tier I capital ratio			11.34	12.05	13.36	12.40	11.43	12.12	–	–	–	–
Tier I capital ratio			11.34	12.05	13.36	12.40	11.43	12.12	–	–	–	–
Total capital ratio			14.51	15.70	16.88	16.18	15.62	15.70	–	–	–	–
Share information
Market value of a voting ordinary share (Rs.)			50.20	79.30	80.90	95.00	115.00	135.80	145.00	140.20	171.00	120.40
Earnings per share (Rs.)			19	19	15	17	17	17	16	13	13	12
Dividend per share (Rs.)			4.50	7.50	6.50	6.50	6.50	6.50	6.50	6.50	6.50	6.50
Price earnings ratio (times)			3	4	5	5	7	8	9	10	13	10
Net assets value per share (Rs.)			164	138	135	130	117	108	88	80	81	72
Earnings yield (%)			37	24	19	17	15	13	11	10	8	10
Gross dividends (Rs. Bn.) to ordinary shareholders			5.58	8.96	7.59	6.68	6.57	6.48	5.77	5.70	5.70	5.52
Dividend payout ratio (%) – Cash			–	22	32	27	26	26	28	33	35	37
Total dividend payout ratio (%)			24	38	46	39	37	38	40	48	50	53
Other information
Number of employees			5,121	5,072	5,057	5,062	5,027	4,982	4,987	4,951	4,852	4,730
Number of delivery points – Sri Lanka	1.71		269	268	268	268	266	261	255	246	239	235
Number of delivery points – Bangladesh			20	19	19	19	19	19	19	18	18	18
Number of automated teller machines	5.03		934	921	906	885	850	775	677	640	625	604

CAGR – Compounded Annual Growth Rate

Group Structure

	Local Subsidiaries				Local Associate	Foreign Subsidiaries
	Commercial Development Company PLC	CBC Tech Solutions Ltd.	CBC Finance Limited	Commercial Insurance Brokers (Pvt) Ltd.	Equity Investments Lanka Limited	Commercial Bank of Maldives Private Limited	CBC Myanmar Microfinance Company Limited
Incorporated on	March 14, 1980 in Sri Lanka	February 17, 2003 in Sri Lanka	February 18, 1987 in Sri Lanka	August 17, 1987 in Sri Lanka	August 8, 1990 in Sri Lanka	March 24, 2015 in Maldives	April 4, 2017 in Myanmar
Bank’s Holding	90.00%	100%	100%	60.00%	22.92%	55%	100%
Principal Business Activities	Property development and provision of other utility services	Providing Information & Communication Technology (ICT) related products, services and solutions to corporate sector	Granting of leasing & hire purchase facilities, mortgage loans and other loan facilities. Accepting public deposits	Insurance Brokering	Venture Capital Financing	Banking	Microfinancing
Business Address	4th Floor, No. 8-4/2, York Arcade Building, Leyden Bastian Road, Colombo 01.	“Commercial House”, No. 21, Sir Razik Fareed Mawatha, Colombo 01.	No. 187, Katugastota Road, Kandy.	No. 347, Dr Colvin R De Silva Mawatha, Colombo 02.	No. 108 A, 2/1, Maya Avenue, Colombo 06.	H. Filigasdhoshuge, Ameer Ahmed Magu, K. Male 20066, Maldives.	No. 15, Office Street, Ward 4, Lewe Township, Nay Pyi Taw, Myanmar.
Contact Numbers	+94 11 244 7300	+94 11 257 4417 +94 11 257 4407	+94 81 221 3498 +94 81 220 0272	+94 11 760 0600	+94 11 250 7605 +94 11 537 3745 +94 11 537 3746	+96 0333 2668	+95 67 80 30566
Board of Directors
Chairman	B R L Fernando	Prof A K W Jayawardane	K G D D Dheerasinghe	M P Jayawardena	M J C Amarasuriya	Ahmed Nazeer	K G D D Dheerasinghe
Managing Director/ Chief Executive Officer	S C U Manatunge	P K A S K Gunawardhana	D M U N Dissanayake	T D Thomas	Deshamanya S E Captain	D D J Rajapakse	D K S S Piyaratne
Chief Executive Officer	R N De Silva (*)	K Mediwake (*)
Director	A L Gooneratne	K D N Buddhipala	S Muhseen	D M D K Thilakaratne	J D Peiris	S C U Manatunge	D J D P Hettiarachchi
Director	A T P Edirisinghe	K S A Gamage	Dr (Ms) J P Kuruppu	U I S Tillakawardana	J B Abu Baker	S Prabagar	G Sivasubramaniam
Director	L D A Jayasinghe		S M S C Jayasuriya	D J D P Hettiarachchi	W I Arambage	U I S Tillakawardana	S Prabagar
Director	U I S Tillakawardena		D M D S S Bandara	W M N S K Weerapana	K C Vignarajah	Dr Ibrahim Vishan
Director			L H Munasinghe	L W P Indrajith	M H Wijewaradene	Ms Fareeha Shareef
Director			M P Dharmasiri			Ms Aishath Zahira
Director						J A D J C Nanayakkara
Company Secretary	L W P Indrajith	M P Dharmasiri	Ms H D U O Gunasekara	Ms Y A Kularathna	Mrs R R Dunuwille	Ms Aminath Nashadil	D K S S Piyaratne

 

(*) Not a Board Member

Summary of financial information

	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021
	Rs. Mn.	Rs. Mn.	Rs. Mn.	Rs. Mn.	Rs. Mn.	Rs. Mn.	Rs. Mn.	Rs. Mn.	Rs. Mn.	Rs. Mn.	Rs. Mn.	Rs. Mn.	Rs. Mn.	Rs. Mn.
Total assets	4,055.082	3,785.349	626.869	461.022	10,955.136	10,311.545	758.701	722.908	254.460	374.086	69,661.744	30,042.751	602.206	394.538
Total liabilities	637.659	457.986	82.845	58.643	7,777.664	7,058.035	191.540	147.146	28.180	125.262	61,350.362	26,258.969	182.927	33.976
Net assets	3,417.423	3,327.363	544.024	402.379	3,177.472	3,253.510	567.161	575.762	226.280	248.824	8,311.383	3,783.782	419.279	360.562
Total revenue	631.128	632.287	647.407	354.303	1,636.161	1,264.114	139.075	204.239	24.697	41.059	3,408.935	1,529.550	92.660	52.965
Profit before tax	401.289	427.265	186.761	156.761	9.726	141.384	43.809	35.784	(16.263)	8.272	1,612.825	568.352	(138.585)	(37.807)
Profit after tax	224.377	401.506	171.724	181.134	39.583	51.612	31.349	30.286	(16.263)	8.272	1,232.231	426.986	(137.619)	(30.370)
Dividend per share (Rs.)	7.00	6.50	50.00	50.00	–	–	25.00	33.33	–	1.00	–	–	–	–