Commercial Bank | Annual Report 2008

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		2008 Compared to 2007
		Shareholder Base
		Information on Debentures of the Bank
		Share price trend & Movement in Share capital
		Income Statement (US$)
		Balance Sheet (US$)
		The Last decade in Summary

Bank (Rs. Mn)	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	CAGR %
For the year ended December 31,
Operating Results
Income	4,744	6,096	8,203	8,364	10,059	12,290	16,100	24,470	35,223	44,115	24.98
Interest income	3,762	4,796	6,510	6,613	7,931	9,584	13,034	19,532	30,503	37,188
Interest expenses	(2,158)	(2,776)	(4,174)	(3,747)	(4,218)	(4,878)	(7,226)	(11,955)	(18,951)	(24,336)
Foreign Exchange profit	274	421	563	464	397	874	587	1,439	1,545	2,633
Commission and other income	517	600	732	1,097	1,731	1,832	2,479	3,499	3,175	4,294
Operating expenses and provisions	(1,586)	(1,891)	(2,306)	(2,902)	(3,887)	(4,908)	(5,232)	(8,301)	(9,567)	(12,259)
Profit before income tax	809	1,150	1,325	1,525	1,954	2,504	3,642	4,214	6,705	7,520	24.98
Income tax on profit	(151)	(214)	(315)	(321)	(477)	(819)	(1,278)	(2,201)	(2,601)	(3,252)
Net profit for the year	658	936	1,010	1,204	1,477	1,685	2,364	2,013	4,104	4,268	20.56
As at December 31,
Assets
Cash and short-term funds	4,050	5,456	4,272	1,835	9,002	12,136	18,663	13,739	16,208	24,115
Balances with Central Banks	2,644	2,583	3,091	3,244	5,233	6,320	9,045	12,574	11,576	10,322
Government Treasury Bills and Bonds	2,614	1,067	649	8,654	16,530	6,122	11,410	12,040	41,068	35,363
Commercial paper	745	331	1,170	1,080	546	560	408	423	–	–
Securities purchased under resale agreements	–	–	1,064	832	6,184	399	808	4,593	3,804	3,400
Dealing Securities	–	–	–	–	–	110	182	145	207	58
Investments held for sale	–	–	–	–	–	–	–	218	205	–
Investments held to maturity	300	208	462	905	2,006	2,340	3,091	1,394	1,756	1,197
Treasury Bonds maturing after one year	959	382	4,658	782	–	13,778	9,808	20,025	8,795	16,270
Bills of Exchange	1,873	2,331	2,368	2,552	2,495	2,799	2,790	3,204	3,195	3,059
Loans and advances	24,787	31,703	36,730	47,350	60,585	82,605	108,884	137,846	160,184	167,858
Lease receivable	1,047	1,263	1,519	1,921	3,364	5,317	7,088	9,482	10,945	9,484
	39,019	45,324	55,983	69,155	105,945	132,486	172,177	215,683	257,943	271,126	20.60
Investments in Associates	78	78	78	78	78	109	107	44	44	44
Investments in Subsidiaries	274	424	424	424	429	429	434	434	434	434
Other assets	1,253	2,478	1,251	2,149	2,167	2,553	4,177	4,336	5,751	5,512
Property, Plant & Equipment and Intangible Assets	1,263	1,306	1,410	1,546	1,661	2,896	3,182	3,477	3,768	4,098
Total Assets	41,887	49,610	59,146	73,352	110,280	138,473	180,077	223,974	267,940	281,214	20.98
Liabilities
Deposits from customers	30,128	37,523	46,306	54,585	75,185	98,730	127,601	157,496	183,110	199,881	20.83
Dividends payable	98	108	163	118	190	230	230	113	113	–
Borrowings	1,350	2,317	1,862	4,200	5,406	9,090	13,387	18,944	18,752	13,620
Securities sold under
repurchase agreements	3,371	1,430	228	1,938	10,580	9,050	11,389	14,330	23,342	25,075
Other liabilities	2,168	2,643	3,263	4,218	4,843	3,735	6,331	9,122	10,308	10,646
Tax payable	4	42	79	39	148	483	818	1,446	1,698	1,665
Debentures	500	500	500	500	2,244	3,244	4,553	6,680	6,680	4,436
	37,619	44,563	52,401	65,598	98,596	124,562	164,309	208,131	244,003	255,323

Shareholders’ Funds
Share Capital/Stated Capital	348	348	1,324	1,324	2,603	2,603	3,327	2,428	10,515	9,548
Statutory Reserve fund	1,009	1,009	1,009	1,009	1,009	1,009	1,421	1,429	1,634	1,847
Reserves	2,911	3,690	4,412	5,421	8,072	10,299	11,020	11,986	11,788	14,496
TOTAL LIABILITIES and SHAREHOLDERS' FUNDS	41,887	49,610	59,146	73,352	110,280	138,473	180,077	223,974	267,940	281,214	20.98
Commitments and contingencies	15,445	17,880	19,749	24,082	38,158	43,942	47,154	56,418	59,954	115,809

Bank	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008

Ratios
Return on average shareholders’ funds (%)	16.21	20.09	17.13	16.61	15.20	13.16	15.93	12.73	20.63	17.13
Income growth (%)	19.25	28.49	34.56	1.96	20.26	22.17	31.00	51.99	43.95	43.95
Return on average assets (%)	1.72	2.05	1.86	1.82	1.61	1.35	1.48	1.00	1.67	1.55
Dividend per share (Rs.)	4.00	4.00	4.50	5.00	5.00	6.00	4.50	5.00	7.00	7.00
Ordinary share dividend cover (times)	4.73	5.91	5.20	5.20	3.70	3.48	3.34	2.54	2.29	2.42
Gross dividends to ordinary shareholders (Rs. Mn)	139.30	156.71	188.06	208.95	348.25	420.00	639.36	714.00	1,743.13	1,745.81
Advances to deposits and refinance (%)	89.75	91.81	85.51	92.59	86.16	89.52	90.64	92.49	91.75	87.12
Property, Plant & Equipment to shareholders’ funds (%)	29.72	25.87	20.90	19.93	14.22	20.81	20.75	21.33	15.74	15.83
Total assets to shareholders’ funds (times)	9.81	9.83	8.77	9.46	9.44	9.95	11.42	14.14	11.19	10.86
Capital Funds to Liabilities including Contingent Liabilities (%)	8.04	8.08	9.35	8.65	8.54	8.26	7.46	6.05	7.87	6.98
Cost/Income Ratio (%)	58.66	54.75	55.27	55.46	55.87	56.78	54.28	61.10	47.87	50.46
Liquid assets to liabilities (%)	22.19	27.22	27.72	27.88	23.95	23.17	24.51	22.64	24.24	24.83
(As specified in the Banking Act No. 30 of 1988)
Group Capital Adequacy (%) Tier I	14.90	14.97	15.72	14.94	13.43	10.78	9.68	7.62	10.00	10.55
Tier I & II	17.14	16.62	16.20	15.07	15.46	13.16	12.08	11.58	12.98	13.13

Share Information
Market value of a share (Rs.)	115	93	127	200	144	160	135	190	147	67
Earnings per share (Rs.)	3	4	4	5	5	6	9	9	17	17
Price earnings ratio (times)	6	4	5	8	8	8	9	15	9	4
Net assets value per share (Rs.)	18	21	25	29	69	51	98	70	97	104
Earnings yield (%)	16	29	18	13	13	13	11	5	11	25
Dividend payout ratio (%)	21	17	22	18	27	29	30	39	44	41
Other Information
No. of employees	1,996	2,067	2,259	2,399	2,648	2,863	3,168	3,415	3,745	4,041
No. of delivery points - Sri Lanka	67	81	100	109	116	125	134	150	163	170
No. of delivery points - Bangladesh	–	–	–	–	4	4	5	7	9	11
No. of Automated Teller Machines	67	79	109	143	166	188	223	278	301	346