Supplementary Information
Main Features of Regulatory Capital Instruments
| Description of the capital instrument (Bank only) |
Stated Capital | Subordinated Term-debt (2015) |
Subordinated Term-debt (2016 - Type A) |
Subordinated Term-debt (2016 - Type B) |
Subordinated
Term-debt (2018 – Type A) |
Subordinated Term-debt (2018 – Type B) |
| Issuer | DFCC Bank PLC | DFCC Bank PLC | DFCC Bank PLC | DFCC Bank PLC | DFCC Bank PLC | DFCC Bank PLC |
| Unique identifier (e.g., ISIN or Bloomberg identifier for private placement) |
LK0055N00000 | C2306 | C 2366 | C-2367 | C-2393 | C-2394 |
| Governing Law(s) of the instrument | Companies Act No. 07 of 2007, Colombo Stock Exchange Regulations | Securities and Exchange Commission Act No. 36 of 1987 (as amended), Colombo Stock Exchange Regulation |
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| Original date of issuance | May 1956 to November 2010 | 10 June 2015 | 9 November 2016 | 9 November 2016 | 26 March 2018 | 26 March 2018 |
| Par value of instrument (LKR) | 10.00 | 100.00 | 100.00 | 100.00 | 100.00 | 100.00 |
| Perpetual or dated | Perpetual | Dated | Dated | Dated | Dated | Dated |
| Original maturity date, if applicable | N/A | 10 June 2020 | 9 November 2021 | 9 November 2023 | 29 March 2023 | 29 March 2025 |
| Amount recognised in regulatory capital (in LKR 000 as at the reporting date) |
4,715,814 | 800,000 | 574,116 | 6,043,140 | 2,913,470 | 4,086,530 |
| Accounting classification (Equity/Liability) |
Equity | Liability | Liability | Liability | Liability | Liability |
| Issuer call subject to prior supervisory approval |
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| Optional call date, contingent call dates and redemption amount (lkr 000) |
N/A | N/A | N/A | N/A | N/A | N/A |
| Subsequent call dates, if applicable | N/A | N/A | N/A | N/A | N/A | N/A |
| Coupons/Dividends | ||||||
| Fixed or floating dividend/coupon | Floating dividend | Fixed coupon | Fixed coupon | Fixed coupon | Fixed coupon | Fixed coupon |
| Coupon rate and any related index (%) |
N/A | 9.4 | 12.15 | 12.75 | 12.6 | 13 |
| Non-cumulative or cumulative | Non-Cumulative | Non-Cumulative | Non-Cumulative | Non-Cumulative | Non-Cumulative | Non-Cumulative |
| Convertible or non-convertible | Non-convertible | Non-convertible | Non-convertible | Non-convertible | Convertible | Convertible |
| If convertible, conversion trigger (s) | N/A | N/A | N/A | N/A | Determined by and at the sole discretion of the Monetary Board of the Central Bank of Sri Lanka, and is defined in the Banking Act, Direction No. 1 of 2016 | Determined by and at the sole discretion of the Monetary Board of the Central Bank of Sri Lanka, and is defined in the Banking Act, Direction No. 1 of 2016 |
| If convertible, fully or partially | N/A | N/A | N/A | N/A | Fully | Fully |
| If convertible, mandatory or optional | N/A | N/A | N/A | N/A | Mandatory | Mandatory |
| If Convertible, conversion rate | N/A | N/A | N/A | N/A | Based on the simple average of the daily Volume Weighted Average Price (VWAP) of an ordinary voting shares | Based on the simple average of the daily Volume Weighted Average Price (VWAP) of an ordinary voting shares |
N/A – Not applicable
| Item | Amount (LKR 000) as at 31 December 2018 | |||||
| Carrying Values as Reported in Published Financial Statements |
Carrying Values under Scope of Regulatory Reporting |
Subject to Credit Risk Framework |
Subject to Market Risk Framework |
Not subject to Capital Requirements or Subject to Deduction from Capital |
Explanation for Differences Between Accounting and Regulatory Reporting |
|
| Assets | ||||||
| Cash and cash equivalents | 5,039,629 | 5,036,121 | 5,036,121 | – | – | |
| Balances with Central Bank of Sri Lanka |
11,841,814 | 11,841,814 | 11,841,814 | – | – | |
| Placements with Banks | 425,087 | 425,000 | 425,000 | – | – | |
| Derivative assets held for risk management |
3,414,549 | – | – | – | – | Included under other asset in regulatory reporting |
| Financial assets measured at fair value through profit or loss (FVTPL) |
6,078,862 | 49,371,081 | 43,984,192 | 3,532,077 | 1,854,812 | The difference is due to the Government and equity securities held for trading which are classified as FVOCI in published Financial Statements |
| Financial assets designated at fair value through profit or loss |
– | – | – | – | – | |
| Financial assets at amortised cost – Loans to and receivables from banks |
12,854,880 | – | – | – | – | Stated under held to maturity in regulatory reporting |
| Financial assets at amortised cost – Loans to and receivables from other customers |
249,733,718 | 252,951,772 | 235,498,057 | – | 20,900,652 | The impairment allowance for loans and advances on a collective and individual basis in accordance with SLFRS 9 – Financial Instruments. The general and specific provisions are made in a accordance with Central Bank of Sri Lanka. The difference between the balance under SLFRS and previous GAAP. |
| Financial assets measured at fair value through other comprehensive income |
55,313,553 | – | – | – | – | Classified into held to maturity and held for trading regulatory reporting |
| Financial assets at amortised cost – debt and other instruments |
22,874,088 | 39,910,074 | 39,423,515 | – | 486,559 | The difference is due to the government and equity securities held for investment purposes which are classified as FVOCI in published financial statements. |
| Investments in subsidiaries | 167,036 | 957,305 | 202,305 | – | 755,000 | Investments in associates and joint ventures are included in regulatory reporting in addition to those in subsidiaries |
| Investments in associates and joint ventures |
790,270 | – | – | – | – | Included in Investments in subsidiaries |
| Property, plant and equipment | 1,620,375 | 1,620,375 | 1,620,375 | – | – | |
| Investment properties | 9,879 | 9,879 | 9,879 | – | – | |
| Goodwill and intangible assets | 668,834 | 668,985 | – | – | 668,985 | |
| Deferred tax assets | 491,523 | – | – | – | – | |
| Other assets | 3,583,781 | 8,135,126 | 8,135,126 | – | – | |
| Total assets | 374,907,878 | 370,927,532 | 346,176,384 | 3,532,077 | 24,666,008 | |
| Liabilities | ||||||
| Due to Banks | 9,446,464 | – | – | – | – | Included under Other Borrowings in regulatory reporting |
| Derivative liabilities held for risk management |
121,373 | – | – | – | – | Included under Other Liabilities in regulatory reporting |
| Other financial liabilities held-for-trading |
– | – | – | – | – | |
| Financial liabilities designated at fair value through profit or loss | – | – | – | – | – | |
| Financial liabilities at amortised cost-due to depositors | 242,237,596 | 233,444,804 | – | – | 233,444,804 | Interest payable on deposits are stated under Other Liabilities in regulatory reporting |
| Financial liabilities at amortised cost-due to borrowers | 47,413,727 | 64,801,097 | – | – | 64,801,097 | Due to banks and Debt Securities Issued are included under this heading in regulatory reporting |
| Debt securities issued | 8,898,441 | – | – | – | – | Included under Other Borrowings in regulatory reporting |
| Current tax liabilities | 1,221,117 | 1,221,117 | – | – | 1,221,117 | Taxes are computed based on different profits under each reporting method. |
| Other provisions | – | – | – | – | – | |
| Other liabilities | 4,867,425 | 16,787,039 | – | – | 16,787,039 | Interest payable on Borrowing and deposits added to the Other Liabilities in regulatory reporting |
| Due to subsidiaries | – | – | – | – | – | |
| Subordinated term debts | 16,855,352 | 16,000,000 | 14,417,256 | 1,582,744 | Regulatory reporting reports only the principal amount | |
| Total liabilities | 331,061,495 | 332,254,057 | 14,417,256 | – | 317,836,801 | |
| Off-Balance sheet liabilities | ||||||
| Guarantees | 12,243,925 | 12,243,925 | 12,243,925 | – | – | |
| Performance bonds | 3,893,464 | 3,893,464 | 3,893,464 | – | – | |
| Letters of credit and acceptances | 12,520,899 | 12,520,899 | 12,520,899 | – | – | |
| Other contingent items bills on collection and capital expenditure approved by the board | 4,667,786 | 4,667,786 | – | – | 4,667,786 | |
| Undrawn loan commitments | 66,860,600 | 66,860,600 | 66,860,600 | – | – | |
| Other Commitments (FX commitments) |
36,956,995 | 36,956,995 | 36,956,995 | – | – | |
| Total Off-Balance sheet liabilities | 137,143,668 | 137,143,668 | 132,475,882 | – | 4,667,786 | |
| Shareholders’ Equity | ||||||
| Equity capital (stated capital)/assigned capital |
4,715,814 | 4,715,814 | – | – | – | |
| of which amount eligible for CET1 | – | – | – | – | – | |
| of which amount eligible for AT1 | – | – | – | – | – | |
| Retained earnings | 17,187,262 | 18,067,032 | – | – | – | Due to differences which arise in profits computed in previous GAAP and SLFRSs |
| Accumulated other comprehensive income |
5,745,025 | – | – | – | 5,745,025 | Accumulated other comprehensive income is only applicable in published Financial Statements |
| Other reserves | 16,198,282 | 15,890,629 | – | – | – | Due to differences which arise in profits computed in previous GAAP and SLFRSs |
| Total Shareholders' Equity | 43,846,383 | 38,673,475 | – | – | 5,745,025 | |