BANK GROUP
For the year ended 31 December
Note
2023
LKR ’000
2022
LKR ’000
2023
LKR ’000
2022
LKR ’000
Cash flows from operating activities
Interest receipts 94,707,773 61,237,255 94,801,907 61,317,563
Interest payments (59,513,733) (34,013,778) (59,449,795) (33,952,168)
Net commission receipts 5,087,447 3,683,160 5,087,447 3,683,160
Net trading income 48,469 28,469 48,469 28,469
Recoveries from loans previously written off 16,767 162,518 16,767 162,518
Receipts from other operating activities 125,212 527,653 521,132 1,077,113
Payments on other operating activities (6,250,903) (5,308,678) (5,837,596) (5,044,500)
Cash payments to employees (4,772,478) (4,660,084) (5,257,537) (5,080,846)
Taxes on financial services (3,234,294) (1,173,413) (3,234,294) (1,173,413)
Operating cash flows before changes in
operating assets and liabilities
26,214,260 20,483,102 26,696,500 21,017,896
Decrease/(Increase) in operating assets:
Balances with Central Bank/deposits held for regulatory
or monetary control purposes
6,923,093 1,569,108 6,923,093 1,569,108
Financial assets at amortised cost –
Loans to and receivables from other customers
735,466 29,673,313 735,466 29,673,313
Others 3,409,013 (6,847,527) 3,460,440 (6,880,994)
Increase/(decrease) in operating liabilities:
Financial liabilities at amortised cost – due to depositors 37,195,041 9,689,742 37,065,783 9,214,443
Others 433,525 (991,233) 433,606 (1,058,272)
Net cash flows from operating activities before income tax 74,910,398 53,576,505 75,314,888 53,535,494
Surcharge tax paid (1,232,490) (1,309,892)
Income tax paid 46 (4,305,780) (1,531,379) (4,446,618) (1,630,622)
Net cash flows from operating activities 70,604,618 50,812,636 70,868,270 50,594,980
Cash flows from investing activities
Dividend received from investment in subsidiaries,
joint venture, and associate
15 78,118 89,861
Dividend received from other investments 111,605 695,331 111,605 695,331
Government securities – net (82,162,743) (30,362,319) (82,162,743) (30,362,319)
Proceeds from sale and redemption of securities 654,149 700,697 654,149 715,734
Purchase of financial investments (1,535,338) (1,342,486) (1,509,437) (1,359,957)
Purchase of property, equipment, intangibles
and investment property
(1,454,768) (1,050,400) (1,546,054) (1,114,992)
Proceeds from sale of equipment, investment property and others 15,502 12,469 15,502 12,469
Net cash flows used in investing activities (84,293,475) (31,256,847) (84,436,978) (31,413,734)
Cash flows from financing activities
Redemption of debentures (8,956,610) (8,956,610)
Issue of new shares under rights issue 50 3,620,001 3,620,001
Borrowing, medium and long-term 1,754,143 4,834,232 1,754,143 4,834,232
Other borrowing – net 44,673,126 12,771,705 44,673,126 12,771,705
Repayment of borrowing, medium and long-term (11,512,493) (26,410,731) (11,512,493) (26,410,731)
Dividends paid (101,536) (85,800)
Net Cash flows from/(used in) financing activities 25,958,166 (5,184,793) 25,856,630 (5,270,593)
Net increase in cash and cash equivalents 12,269,309 14,370,996 12,287,922 13,910,653
Cash and cash equivalents at the beginning of the year 31,347,257 16,976,261 31,369,128 17,458,475
Cash and cash equivalents at the end of the year 43,616,566 31,347,257 43,657,050 31,369,128
Reconciliation of cash and cash equivalents with items reported
in the statement of financial position
Cash and cash equivalents 25 14,478,468 16,122,565 14,483,062 16,126,635
Placements with banks 27 29,138,098 15,224,692 29,173,988 15,242,493
43,616,566 31,347,257 43,657,050 31,369,128

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.

The notes to the financial statements form part of these financial statements.

 

RECONCILIATION OF PROFIT FOR THE YEAR TO OPERATING CASH FLOWS BEFORE CHANGES IN OPERATING ASSETS AND LIABILITIES

BANK GROUP
Note
2023
LKR ’000
2022
LKR ’000
2023
LKR ’000
2022
LKR ’000
Profit before income tax 10,960,326 2,439,473 12,508,149 3,112,212
Add/(deduct) items not using (providing) cash: 14,315,917 18,605,282 13,264,760 18,342,253
Depreciation
– Property plant and equipment and investment property 18 382,427 400,320 438,893 455,785
– Right-of-use assets 18 326,149 309,678 328,099 309,678
Amortisation –
Intangible assets 18 415,277 414,668 423,671 422,970
Accretion of interest on right-of-use assets 11.1.2 153,345 141,899 154,570 141,899
Net gains from trading
Unrealised loss on trading securities 13 231,506 239,223 231,506 239,223
Forward exchange fair value changes from banks
and other customers
13 384,709 (299,859) 384,709 (299,859)
Foreign exchange (gains)/losses 15, 13 (1,563,021) 170,534 (1,548,076) 151,953
Impairment for loans and other losses 16 13,984,830 17,041,471 13,984,830 17,058,972
Share of profits of associate and joint venture (1,140,981) (332,719)
Provision for defined benefit plans 17 695 187,348 7,540 194,351
Deduct items reported under investing activities (3,598,282) (1,316,969) (3,598,282) (1,227,108)
Dividend income (741,555) (1,209,113) (741,555) (1,119,252)
Gains on sale of Government securities 14 (2,838,626) (99,112) (2,838,626) (99,112)
Gains on sale of property, plant and equipment 15 (18,101) (8,744) (18,101) (8,744)
Deduct changes in operating assets and liabilities: 4,536,299 755,316 4,521,872 790,539
Increase in account receivables (2,258,639) (6,527,119) (2,220,165) (6,594,969)
Increase in account payables 6,794,938 7,282,435 6,742,037 7,385,508
Operating cash flows before changes in operating
assets and liabilities
26,214,260 20,483,102 26,696,500 21,017,896

The notes to the financial statements form part of these financial statements.