Financial Reports
Statement of Cash Flows
| BANK | GROUP | |||
| For the year ended 31 December | 2018 LKR 000 |
2017 LKR 000 |
2018 LKR 000 |
2017 LKR 000 |
| Cash flows from operating activities | ||||
| Interest receipts | 21,879,208 | 24,258,984 | 21,919,677 | 24,257,743 |
| Interest payments | (23,669,321) | (19,308,381) | (23,631,703) | (19,267,517) |
| Net commission receipts | 1,965,693 | 1,684,812 | 1,965,693 | 1,684,812 |
| Net trading income | 6,271,792 | (311,731) | 6,271,792 | (311,731) |
| Recoveries from loans previously written-off | 10,460 | 36,768 | 10,460 | 36,769 |
| Receipts from other operating activities | 3,276,220 | 1,338,987 | 3,823,357 | 1,813,361 |
| Payments on other operating activities | (2,878,077) | (2,406,996) | (2,878,077) | (2,406,996) |
| Cash payments to employees | (3,680,695) | (3,188,464) | (3,983,485) | (3,473,725) |
| Value added tax, nation building tax and debt repayment levy on financial services |
(1,168,279) | (1,298,496) | (1,168,279) | (1,298,496) |
| Operating cash flows before changes in operating assets and liabilities |
2,007,001 | 805,483 | 2,329,435 | 1,034,220 |
| (Increase)/decrease in operating assets: | ||||
| Balances with Central Bank/deposits held for regulatory or monetary control purposes |
(1,284,129) | (2,495,121) | (1,284,129) | (2,495,121) |
| Financial assets at amortised cost – Loans to and receivables from other customers |
(28,536,076) | (26,935,976) | (28,536,076) | (26,935,976) |
| Others | 3,606,060 | 690,451 | 3,702,214 | 723,354 |
| Increase/(decrease) in operating liabilities: | ||||
| Financial liabilities at amortised cost – Due to depositors | 46,675,218 | 50,738,651 | 46,608,731 | 50,599,577 |
| Negotiable certificates of deposits | 79,186 | (259,665) | 79,186 | (259,665) |
| Others | (2,995,967) | 206,374 | (2,995,967) | 206,374 |
| Net cash flows from operating activities before income tax |
19,551,293 | 22,750,197 | 19,903,394 | 22,872,763 |
| Income tax paid | (318,441) | (1,404,889) | (346,537) | (1,455,337) |
| Net cash flows from operating activities | 19,232,852 | 21,345,308 | 19,556,857 | 21,417,426 |
| Cash flows from investing activities | ||||
| Dividends received from investment in subsidiaries, joint venture and associate |
594,901 | 680,893 | 524,646 | 629,428 |
| Interest received | 6,706,368 | 6,122,521 | 6,746,070 | 6,171,449 |
| Government securities – net | (22,736,595) | (9,062,415) | (22,736,595) | (9,062,415) |
| Proceeds from sale and redemption of securities | 1,262,943 | 2,960,619 | 1,262,943 | 2,960,619 |
| Purchase of financial investments | (402,563) | (1,661,972) | (399,563) | (1,674,972) |
| Net cashflow on acquisition of investment in additional shares of subsidiaries – (Synapsys Ltd.) |
– | (65,000) | – | – |
| Purchase of property, equipment, intangibles and investment property |
(1,093,170) | (880,905) | (1,307,636) | (992,860) |
| Proceeds from sale of equipment and investment property | 5,895 | 8,944 | 5,876 | 16,196 |
| Net cash flows used in investing activities | (15,662,221) | (1,897,315) | (15,904,259) | (1,952,555) |
| Cash flows from financing activities | ||||
| Issue of debentures | 7,000,000 | – | 7,000,000 | – |
| Redemption of debentures | – | (5,000,000) | – | (5,000,000) |
| Borrowing, medium and long-term | 7,385,449 | 11,510,776 | 7,385,449 | 11,510,776 |
| Other borrowings – net | (33,701) | (15,718,589) | (33,701) | (15,718,589) |
| Repayment of borrowing, medium and long-term | (21,969,027) | (3,943,757) | (21,969,027) | (3,943,757) |
| Dividends paid | (1,286,242) | (1,180,868) | (1,378,130) | (1,241,185) |
| Net cash flows used in financing activities | (8,903,521) | (14,332,438) | (8,995,409) | (14,392,755) |
| Net (decrease)/increase in cash and cash equivalents | (5,332,890) | 5,115,555 | (5,342,811) | 5,072,116 |
| Cash and cash equivalents at the beginning of year | 10,797,606 | 5,682,051 | 10,832,361 | 5,760,245 |
| Cash and cash equivalents at the end of year | 5,464,716 | 10,797,606 | 5,489,550 | 10,832,361 |
| Reconciliation of cash and cash equivalents with items reported in the statement of financial position |
||||
| Cash and cash equivalents (Note 24) | 5,039,629 | 4,106,225 | 5,049,823 | 4,120,230 |
| Placements with banks (Note 26) | 425,087 | 6,691,381 | 439,727 | 6,712,131 |
| 5,464,716 | 10,797,606 | 5,489,550 | 10,832,361 | |
The Statement of Cash Flows of the Bank includes the results of associate, joint venture and subsidiary companies only to the extent of the cash flows between Bank and respective companies as required by Sri Lanka Accounting Standards.
Reconciliation of profit for the year to net cash flows from operating activities.
| BANK | GROUP | |||
| 2018 LKR 000 |
2017 LKR 000 |
2018 LKR 000 |
2017 LKR 000 |
|
| Profit for the year | 2,768,179 | 4,414,964 | 3,070,227 | 4,433,757 |
| Add/(deduct) items not using (providing) cash: | 4,092,028 | 2,406,558 | 3,838,616 | 2,265,556 |
| Depreciation – Property, equipment and investment property | 313,255 | 259,548 | 359,237 | 300,142 |
| Amortisation – Intangible assets | 149,088 | 109,573 | 150,891 | 110,807 |
| Unrealised (gain)/loss on trading securities | 1,038,919 | (91,252) | 1,038,919 | (91,252) |
| Net (gain)/loss from financial instruments at fair value | ||||
| – Contracts with commercial banks | (2,688,008) | 314,489 | (2,688,008) | 314,489 |
| – CBSL Swap | (58,990) | 86,277 | (58,990) | 86,277 |
| Interest rate swap fair value changes | (11,549) | 3,820 | (11,549) | 3,820 |
| Amortisation of deferred income on Government grant | 46,990 | 85,973 | 46,990 | 85,973 |
| Foreign exchange loss | 4,255,763 | 849,494 | 4,255,763 | 849,494 |
| Impairment for loans and other losses | 1,056,230 | 1,176,413 | 1,056,230 | 1,170,366 |
| Notional tax credit on Treasury Bills and Bonds | (143,940) | (505,381) | (143,940) | (505,381) |
| Share of profits of associate and joint venture | – | – | (307,218) | (185,030) |
| Provision for defined benefit plans | 134,270 | 117,604 | 140,291 | 125,851 |
| Deduct items reported gross under investing activities: | (7,249,939) | (7,321,540) | (7,119,625) | (7,036,538) |
| Dividend income | (933,088) | (889,883) | (801,071) | (798,420) |
| Gains on sale of Government securities | (3,206) | (1,558) | (3,206) | (1,558) |
| Gain on sale of equity securities | (15,908) | (1,150,368) | (15,908) | (948,783) |
| Gain on sale of equipment and investment property | (5,176) | (11,299) | (5,176) | (11,299) |
| Interest income from investments | (6,292,561) | (5,268,432) | (6,294,264) | (5,276,478) |
| Deduct changes in operating assets and liabilities: | 19,622,584 | 21,845,326 | 19,767,639 | 21,754,651 |
| (Increase)/decrease in account receivables | (4,518,512) | 2,922,640 | (4,277,981) | 2,468,411 |
| Increase/(decrease) in account payables | 2,078,472 | (2,309,758) | 1,927,625 | (1,847,605) |
| Increase/(decrease) in income tax payable | 2,832,782 | (369,905) | 2,910,437 | (351,377) |
| Increase/(decrease) in deferred tax | 1,685,550 | (342,365) | 1,633,599 | (353,321) |
| Increase in operating assets | (26,214,145) | (28,740,646) | (26,117,991) | (28,707,743) |
| Increase in operating liabilities | 43,758,437 | 50,685,360 | 43,691,950 | 50,546,286 |
| Net cash flows from operating activities | 19,232,852 | 21,345,308 | 19,556,857 | 21,417,426 |