Basel III Computation of Liquidity Coverage Ratio – All Currencies

	Amount (LKR ’000)
	31 December 2023		31 December 2022
Item	Total un-weighted value	Total weighted value	Total un-weighted value	Total weighted value
Total stock of High-Quality Liquid Assets (HQLA)	152,762,344	151,562,260	102,328,523	101,602,039
Total adjusted level 1A assets	148,747,554	148,747,554	99,703,368	99,703,368
Level 1 assets	148,747,554	148,747,554	99,703,368	99,703,368
Total adjusted level 2A assets	2,306,603	1,960,612	1,674,550	1,423,368
Level 2A assets	2,306,603	1,960,612	1,674,550	1,423,368
Total adjusted level 2B assets	1,708,187	854,094	950,605	475,303
Level 2B assets	1,708,187	854,094	950,605	475,303
Total cash outflows	584,446,642	89,080,919	504,176,302	89,429,232
Deposits	300,166,130	26,997,638	272,209,694	24,203,659
Unsecured wholesale funding	109,168,821	53,262,615	106,359,474	53,600,766
Secured funding transactions	43,752,861	–	4,092,627	–
Undrawn portion of committed (irrevocable) facilities and other contingent funding obligations	130,623,427	8,085,263	117,507,661	7,617,961
Additional requirements	735,403	735,403	4,006,846	4,006,846
Total cash inflows	77,169,785	63,713,421	54,047,087	39,216,667
Maturing secured lending transactions backed by collateral	26,780,604	25,793,392	22,184,855	21,240,548
Committed facilities	–	–	–	–
Other inflows by counterparty which are maturing within 30 Days	46,800,877	37,755,736	24,533,688	17,898,106
Operational deposits	3,259,718	–	7,172,519	–
Other cash inflows	328,586	164,293	156,025	78,013
Liquidity coverage Ratio (%) (Stock of high quality liquid assets/ total net cash outflows over the next 30 calendar days) *100		597.47		202.34

Basel III Computation of Liquidity Coverage Ratio – LKR only

	Amount (LKR’000)
	31 December 2023		31 December 2022
Item	Total un-weighted value	Total weighted value	Total un-weighted value	Total weighted value
Total stock of High-Quality Liquid Assets (HQLA)	150,243,525	149,389,432	100,501,922	100,026,620
Total adjusted level 1A assets	148,535,338	148,535,338	99,551,317	99,551,317
Level 1 assets	148,535,338	148,535,338	99,551,317	99,551,317
Total adjusted Level 2A assets	–	–	–	–
Level 2A assets	–	–	–	–
Total adjusted level 2B assets	1,708,187	854,094	950,605	475,303
Level 2B assets	1,708,187	854,094	950,605	475,303
Total cash outflows	464,356,185	58,215,737	407,234,696	61,192,077
Deposits	264,288,518	23,433,959	242,096,752	21,192,364
Unsecured wholesale funding	55,509,591	28,093,184	62,200,762	30,953,525
Secured funding transactions	43,752,860	–	4,092,627	–
Undrawn portion of committed (irrevocable) facilities and other contingent funding obligations	100,069,813	5,953,191	95,675,249	5,876,882
Additional requirements	735,403	735,403	3,169,306	3,169,306
Total cash inflows	46,552,914	37,336,837	32,372,540	26,682,615
Maturing secured lending transactions backed by collateral	24,551,225	23,564,013	20,794,949	19,850,642
Committed facilities	–	–	–	–
Other inflows by counterparty which are maturing within 30 Days	21,673,103	13,608,531	11,421,566	6,753,960
Operational deposits	–	–	–	–
Other cash inflows	328,586	164,293	156,025	78,013
Liquidity coverage Ratio (%) (Stock of high quality liquid assets/ total net cash outflows over the next 30 calendar days) *100		715.50		289.85

Maturity of Assets and Liabilities

As at 31 December 2023	Up to 1 month LKR ’000	1-3 months LKR ’000	3-6 months LKR ’000	6-12 months LKR ’000	1-3 years LKR ’000	3-5 years LKR ’000	Over 5 years LKR ’000	Total LKR ’000
Financial assets
Cash and cash equivalents	14,478,468	–	–	–	–	–	–	14,478,468
Balances with Central Bank of Sri Lanka	2,107,776	–	–	–	–	–	–	2,107,776
Placement with banks	29,138,098	–	–	–	–	–	–	29,138,098
Derivative financial assets	98,653	810,321	796,764	1,651,425	7,010,475	6,131,533	–	16,499,171
Financial assets measured at fair value through profit or loss	–	532,135	–	798	–	–	1,207,995	1,740,928
Financial assets at amortised cost – Loans to and receivables from other customers	48,084,553	54,748,269	40,674,588	21,241,905	122,647,623	25,580,497	35,790,031	348,767,466
Financial assets at amortised cost – Debt and other instruments	–	1,979,930	52,045	–	23,853,009	25,680,592	16,465,737	68,031,313
Financial assets measured at fair value through other comprehensive income	16,726,256	29,092,254	36,568,960	7,571,404	11,945,976	16,442,286	16,555,629	134,902,765
Other assets	2,825,314	548,088	232,347	20,066	22,622	19,002	6,902,111	10,569,550
Total financial assets	113,459,118	87,710,997	78,324,704	30,485,598	165,479,705	73,853,910	76,921,503	626,235,535
Financial liabilities
Due to banks	43,372,338	6,471,052	2,950,074	–	–	–	–	52,793,464
Derivative financial liabilities	147,240	234,413	–	–	–	–	–	381,653
Financial liabilities at amortised cost – Due to depositors	44,666,732	81,884,008	82,358,004	88,754,856	29,537,126	55,818,311	24,206,276	407,225,313
Financial liabilities at amortised cost – Due to other borrowers	3,229,347	9,886,030	3,949,723	7,610,382	22,284,106	21,277,149	3,785,997	72,022,734
Debt securities in issue	–	4,832,618	290,688	–	6,777,101	–	4,411,170	16,311,577
Other liabilities	2,714,034	884,053	68,956	141,728	519,793	370,474	867,269	5,566,307
Subordinated term debt	–	396,257	–	69,537	8,401,546	204,925	–	9,072,265
Total financial liabilities	94,129,691	104,588,431	89,617,445	96,576,503	67,519,672	77,670,859	33,270,712	563,373,313
Total net financial assets/(liabilities)	19,329,427	(16,877,434)	(11,292,741)	(66,090,905)	97,960,033	(3,816,949)	43,650,791	62,862,222
Contingencies
Guarantees	18,942	27,161	151,660	6,889	6,506	5,018,307	2,797	5,232,262
Acceptance	2,615,760	2,403,046	607,234	53,625	77,310	7,500,795	–	13,257,770
Performance bonds	1,563,866	2,573,281	709,602	1,385,011	950,284	19,534	–	7,201,578
Forward contracts	7,243,553	16,137,790	2,068,220	4,221,152	17,717,145	16,546,837	–	63,934,697
Documentary credit	2,621,469	3,951,661	825,789	816,964	162,845	5,796,714	–	14,175,442
Total contingencies	14,063,590	25,092,939	4,362,505	6,483,641	18,914,090	34,882,187	2,797	103,801,749
Commitments
Commitments in ordinary course of business – Commitments for unutilised credit facilities	89,301,635	–	–	–	–	–	–	89,301,635
Capital commitments	889,386	–	–	–	–	–	–	889,386
Total commitments	90,191,021	–	–	–	–	–	–	90,191,021
Total commitments and contingencies	104,254,611	25,092,939	4,362,505	6,483,641	18,914,090	34,882,187	2,797	193,992,770

As at 31 December 2022	Up to 1 month LKR ’000	1-3 months LKR ’000	3-6 months LKR ’000	6-12 months LKR ’000	1-3 years LKR ’000	3-5 years LKR ’000	Over 5 years LKR ’000	Total LKR ’000
Financial assets
Cash and cash equivalents	16,122,565	–	–	–	–	–	–	16,122,565
Balances with Central Bank of Sri Lanka	9,030,868	–	–	–	–	–	–	9,030,868
Placement with banks	11,202,407	4,022,285	–	–	–	–	–	15,224,692
Derivative financial assets	20,473,544	–	–	–	–	–	–	20,473,544
Financial assets measured at fair value through profit or loss	–	–	795,434	–	–	633,715	–	1,429,149
Financial assets at amortised cost – Loans to and receivables from other customers	23,967,594	44,360,180	31,882,504	46,264,751	96,627,094	56,313,580	69,656,327	369,072,030
Financial assets at amortised cost – Debt and other instruments	1,745,661	9,759,633	2,371,958	1,650,524	18,844,407	11,992,192	4,583,551	50,947,926
Financial assets measured at fair value through other comprehensive income	3,717,657	11,490,644	13,510,430	18,263,819	5,798,500	2,079,021	8,458,989	63,319,060
Other assets	2,070,333	19,592	91,545	111,576	5,274,666	104,057	133,195	7,804,964
Total financial assets	88,330,629	69,652,334	48,651,871	66,290,670	126,544,667	71,122,565	82,832,062	553,424,798
Financial liabilities
Due to banks	11,954,501	3,903,493	–	–	–	–	–	15,857,994
Derivative financial liabilities	84,670	–	–	–	–	–	–	84,670
Financial liabilities at amortised cost – Due to depositors	33,038,328	69,852,202	82,296,428	95,814,357	31,704,690	40,565,243	17,042,778	370,314,026
Financial liabilities at amortised cost – Due to other borrowers	1,862,870	2,700,393	2,555,979	7,533,527	27,331,823	25,833,178	13,327,922	81,145,692
Debt securities in issue	–	1,028,128	294,729	–	8,786,545	1,783,541	4,411,172	16,304,115
Other liabilities	5,783,555	362,616	75,273	129,041	518,832	425,091	820,236	8,114,644
Subordinated term debt	–	3,583,075	–	6,215,834	8,396,255	204,827	–	18,399,991
Total financial liabilities	52,723,924	81,429,907	85,222,409	109,692,759	76,738,145	68,811,880	35,602,108	510,221,132
Total net financial assets/(liabilities)	35,606,705	(11,777,573)	(36,570,538)	(43,402,089)	49,806,522	2,310,685	47,229,954	43,203,666
Contingencies
Guarantees	16,387,487	–	–	–	–	–	–	16,387,487
Acceptance	–	1,229,460	632,593	31,110	–	–	–	1,893,163
Performance bonds	7,748,815	–	–	–	–	–	–	7,748,815
Forward contracts	2,740,603	(5,688,538)	(755,520)	2,472,326	20,540,444	21,712,235	8,458,978	49,480,528
Documentary credit	–	2,041,986	449,934	3,137,249	–	–	–	5,629,169
Total contingencies	26,876,905	(2,417,092)	327,007	5,640,685	20,540,444	21,712,235	8,458,978	81,139,162
Commitments
Commitments in ordinary course of business – Commitments for unutilised credit facilities	87,696,786	–	–	–	–	–	–	87,696,786
Capital commitments	293,579	1,000	–	1,980	–	–	–	296,559
Total commitments	87,990,365	1,000	–	1,980	–	–	–	87,993,345
Total commitments and contingencies	114,867,270	(2,416,092)	327,007	5,642,665	20,540,444	21,712,235	8,458,978	169,132,507

Maturity Gap Analysis of Foreign Currency Denominated Assets and Liabilities – USD

As at 31 December 2023	Up to 1 month USD ’000	1-3 months USD ’000	3-6 months USD ’000	6-12 months USD ’000	1-3 years USD ’000	3-5 years USD ’000	Over 5 years USD ’000	Total USD ’000
Total assets	88,182	51,823	22,253	30,111	51,801	34,200	26,899	305,269
Total liabilities	21,800	66,700	57,338	113,435	85,318	74,311	21,607	440,509
Total net financial assets/(liabilities)	66,382	(14,877)	(35,085)	(83,324)	(33,517)	(40,111)	5,292	(135,240)

As at 31 December 2022	Up to 1 month USD ’000	1-3 months USD ’000	3-6 months USD ’000	6-12 months USD ’000	1-3 years USD ’000	3-5 years USD ’000	Over 5 years USD ’000	Total USD ’000
Total assets	63,622	52,837	25,752	19,989	50,798	26,250	26,108	265,356
Total liabilities	28,949	40,466	31,110	84,920	76,282	74,921	37,952	374,600
Total net financial assets/(liabilities)	34,673	12,371	(5,358)	(64,931)	(25,484)	(48,671)	(11,844)	(109,244)

Sensitivity of Financial Assets and Financial Liabilities

BANK As at 31 December 2023	Up to 1 month LKR ’000	1-3 months LKR ’000	3-6 months LKR ’000	6-12 months LKR ’000	1-3 years LKR ’000	3-5 years LKR ’000	Over 5 years LKR ’000	Non-interest bearing LKR ’000	Total LKR ’000
Financial assets
Cash and cash equivalents	828,589	–	–	–	–	–	–	13,649,879	14,478,468
Balances with Central Bank of Sri Lanka	–	–	–	–	–	–	–	2,107,776	2,107,776
Placements with banks	28,583,114	74,161	–	–	–	–	–	480,823	29,138,098
Derivative financial assets	–	–	–	–	–	–	–	16,499,171	16,499,171
Financial assets measured at fair value through profit or loss	–	–	532,186	748	–	–	–	1,207,994	1,740,928
Financial assets at amortised cost – Loans to and receivables from other customers	117,771,062	49,406,263	22,906,727	27,649,675	23,576,099	38,290,720	43,767,384	25,399,536	348,767,466
Financial assets at amortised cost – Debt and other Instruments	–	4,276,077	244,290	–	21,364,617	25,680,592	16,465,737	–	68,031,313
Financial assets measured at fair value through other comprehensive income	16,776,751	28,142,777	37,518,437	7,571,405	11,945,975	16,442,286	–	16,505,134	134,902,765
Other assets	–	–	–	–	–	–	–	10,569,550	10,569,550
Total financial assets	163,959,516	81,899,278	61,201,640	35,221,828	56,886,691	80,413,598	60,233,121	86,419,863	626,235,535
Financial Liabilities
Due to banks	48,337,235	1,506,155	2,950,074	–	–	–	–	–	52,793,464
Derivative financial liabilities	–	–	–	–	–	–	–	381,653	381,653
Financial liabilities at amortised cost – Due to depositors	124,662,425	72,215,659	75,780,831	78,566,344	8,432,074	34,722,025	88,852	12,757,103	407,225,313
Financial liabilities at amortised cost – Due to other borrowers	–	13,739,264	4,496,986	6,580,264	22,336,315	21,288,244	3,581,661	–	72,022,734
Debt securities in issue	–	4,819,254	297,082	–	6,784,070	–	4,411,171	–	16,311,577
Other liabilities	–	–	–	–	–	–	–	5,566,306	5,566,306
Subordinated term debt	–	397,839	–	73,578	8,395,848	205,000	–	–	9,072,265
Total financial liabilities	172,999,660	92,678,171	83,524,973	85,220,186	45,948,307	56,215,269	8,081,684	18,705,062	563,373,312
Interest rate sensitivity gap	(9,040,144)	(10,778,893)	(22,323,333)	(49,998,358)	10,938,384	24,198,329	52,151,437	67,714,801

BANK As at 31 December 2022	Up to 1 month LKR ’000	1-3 months LKR ’000	3-6 months LKR ’000	6-12 months LKR ’000	1-3 years LKR ’000	3-5 years LKR ’000	Over 5 years LKR ’000	Non-interest bearing LKR ’000	Total LKR ’000
Financial assets
Cash and cash equivalents	1,566,636	–	–	–	–	–	–	14,555,929	16,122,565
Balances with Central Bank of Sri Lanka	–	–	–	–	–	–	–	9,030,868	9,030,868
Placements with banks	13,018,678	2,206,014	–	–	–	–	–	–	15,224,692
Derivative financial assets	–	–	–	–	–	–	–	20,473,544	20,473,544
Financial assets measured at fair value through profit or loss	–	–	795,433	–	–	–	–	633,716	1,429,149
Financial assets at amortised cost – Loans to and receivables from banks
Financial assets at amortised cost – Loans to and receivables from other customers	139,846,895	95,477,247	31,372,076	35,969,173	26,025,656	20,603,728	8,175,011	11,602,244	369,072,030
Financial assets at amortised cost – Debt and other Instruments	1,745,943	9,889,773	2,339,275	1,650,345	18,746,848	11,992,192	4,583,550	–	50,947,926
Financial assets measured at fair value through other comprehensive income	3,797,959	11,490,644	13,510,430	18,263,819	5,783,110	2,080,095	–	8,393,003	63,319,060
Other assets	–	–	–	–	–	–	–	7,804,964	7,804,964
Total financial assets	159,976,111	119,063,678	48,017,214	55,883,337	50,555,614	34,676,015	12,758,561	72,494,268	553,424,798
Financial liabilities
Due to banks	13,763,582	2,094,412	–	–	–	–	–	–	15,857,994
Derivative financial liabilities	–	–	–	–	–	–	–	84,670	84,670
Financial liabilities at amortised cost – Due to depositors	88,920,831	62,265,263	77,026,884	89,260,266	17,039,675	25,900,229	59,916	9,840,962	370,314,026
Financial liabilities at amortised cost – Due to other borrowers	2,735,001	5,933,047	3,394,560	5,221,804	24,879,605	25,933,748	13,047,927	–	81,145,692
Debt securities in issue	–	1,007,125	296,990	–	8,804,760	1,784,070	4,411,170	–	16,304,115
Other liabilities	–	–	–	–	–	–	–	8,144,644	8,144,644
Subordinated term debt	–	3,567,232	–	6,223,229	8,404,530	205,000	–	–	18,399,991
Total financial liabilities	105,419,414	74,867,079	80,718,434	100,705,299	59,128,570	53,823,047	17,519,013	18,040,276	510,221,132
Interest rate sensitivity gap	54,556,697	44,196,599	(32,701,220)	(44,821,962)	(8,572,956)	(19,147,032)	(4,760,452)	54,453,992

Key Regulatory Ratios – Capital and Liquidity

Item	31 December 2023		31 December 2022
	Bank	Group	Bank	Group
Regulatory capital (LKR ’000)
Common equity Tier 1	43,632,490	47,491,186	36,818,873	36,381,997
Tier 1 capital	43,632,490	47,491,186	36,818,873	36,381,997
Total capital	51,304,883	55,171,249	48,004,800	47,574,241
Regulatory capital ratios (%)
Common equity Tier 1 capital ratio (Minimum requirement – 7.00%)	11.49	12.46	10.09	9.94
Tier 1 capital ratio (Minimum requirement – 8.50%)	11.49	12.46	10.09	9.94
Total capital ratio (Minimum requirement – 12.50%)	13.51	14.48	13.15	12.99
Computation of leverage ratio
Tier 1 capital	43,632,490	47,491,186	36,818,873	36,581,997
Total exposures	698,237,531	701,271,268	621,004,625	620,033,354
On-Balance sheet items
(excluding securities financing transactions, but including collateral)	604,132,634	607,166,371	527,140,776	526,169,505
Derivative exposures	72,602,003	72,602,003	68,966,546	68,966,546
Securities financing transaction exposures	1,974,425	1,974,425	2,467,643	2,467,643
Other off-balance sheet exposures	19,528,469	19,528,469	22,429,660	22,429,660
Basel III leverage ratio (%) (Tier 1/total exposure)	6.25	6.77	5.93	5.87
Computation of net stable funding ratio
Total available stable funding	448,446,564	N/A	438,464,296	N/A
Required stable funding – On balance sheet assets	358,713,526	N/A	341,855,944	N/A
Required stable funding – Off balance sheet items	1,181,497	N/A	4,629,317	N/A
Total required stable funding	359,895,023	N/A	346,485,261	N/A
Net stable funding ratio (%)	124.60	N/A	126.55	N/A

Basel III Computation of Capital Ratios

Item	31 December 2023		31 December 2022
	Bank LKR ’000	Group LKR ’000	Bank LKR ’000	Group LKR ’000
Common equity Tier 1 (CET1) capital after adjustments	43,632,490	47,491,186	36,818,873	36,381,998
Common equity Tier 1 (CET1) capital	61,524,384	66,919,617	52,778,734	56,909,694
Equity capital (stated capital)/assigned capital	13,866,557	13,866,557	13,182,025	13,182,025
Reserve fund	3,239,968	3,239,968	2,874,968	2,874,968
Published retained earnings/(accumulated retained losses)	28,250,357	33,645,590	22,600,898	26,731,858
Published accumulated Other Comprehensive Income (OCI)	2,387,663	2,387,663	341,004	341,004
General and other disclosed reserves	13,779,839	13,779,839	13,779,839	13,779,839
Unpublished current year's profit/loss and gains reflected in OCI	–	–	–	–
Ordinary shares issued by consolidated banking and financial subsidiaries of the Bank and held by third parties	–	–	–	–
Total adjustments to CET1 capital	17,891,894	19,428,431	15,959,861	20,527,696
Goodwill (net)	–	156,226	–	156,226
Intangible assets (net)	1,926,287	1,945,030	2,198,042	2,218,827
Investment in capital of banks and financial institutions	10,114,730	11,468,498	9,204,363	13,589,480
Others	5,850,877	5,858,677	4,557,456	4,563,163
Additional Tier 1 (AT1) capital after adjustments
Additional Tier 1 (AT1) capital	–	–	–	–
Qualifying additional Tier 1 capital instruments	–	–	–	–
Instruments issued by consolidated banking and financial subsidiaries of the Bank and held by third parties	–	–	–	–
Total Adjustments to AT1 capital
Investment in own shares	–	–	–	–
Others (specify)	–	–	–	–
Tier 2 capital after adjustments	7,672,393	7,680,063	11,185,927	11,192,244
Tier 2 capital	7,672,393	7,680,063	11,185,927	11,192,244
Qualifying Tier 2 capital instruments	3,525,812	3,525,812	7,039,040	7,039,040
Revaluation gains	–	–	–	–
Loan loss provisions	4,146,581	4,154,251	4,146,887	4,153,204
Instruments issued by consolidated banking and financial subsidiaries of the Bank and held by third parties	–	–	–	–
Total adjustments to Tier 2
Investment in own shares	–	–	–	–
Others (specify)	–	–	–	–
CET1 capital	43,632,490	47,491,186	36,818,873	36,381,998
Total Tier 1 capital	43,632,480	47,491,186	36,818,873	36,381,998
Total capital	51,304,883	55,171,249	48,004,800	47,574,242

Item	31 December 2023		31 December 2022
	Bank	Group	Bank	Group
Total risk weighted assets (RWA) (LKR ’000)
RWAs for credit risk	331,726,504	332,340,053	331,750,969	332,256,322
RWAs for market risk	14,061,808	14,061,808	8,391,648	8,391,648
RWAs for operational risk	33,950,018	34,615,939	24,960,190	25,491,894
CET1 capital ratio (including capital conservation buffer, countercyclical capital buffer and surcharge on d-sibs) (%)	11.49	12.46	10.09	9.94
of which: capital conservation buffer (%)	2.50	2.50	2.50	2.50
of which: countercyclical buffer (%)	N/A	N/A	N/A	N/A
of which: capital surcharge on d-sibs (%)	N/A	N/A	N/A	N/A
Total Tier 1 capital ratio (%)	11.49	12.46	10.09	9.94
Total capital ratio (including capital conservation buffer, countercyclical capital buffer and surcharge on d-sibs) (%)	13.51	14.48	13.15	12.99
of which: capital conservation buffer (%)	2.50	2.50	2.50	2.50
of which: countercyclical buffer (%)	N/A	N/A	N/A	N/A
of which: capital surcharge on d-sibs (%)	N/A	N/A	N/A	N/A

Credit Risk under Standardised Approach – Credit Risk Exposures and Credit Risk Mitigation (CRM) Effects

	As at 31 December 2023
Asset Class	Exposures before Credit Conversion Factor (CCF) and CRM		Exposures post CCF and CRM		RWA and RWA density (%)
	On-balance sheet amount LKR ’000	Off-balance sheet amount LKR ’000	On-balance sheet amount LKR ’000	Off-balance sheet amount LKR ’000	RWA LKR ’000	RWA Density(ii) %
Bank
Claims on Central Government and CBSL	216,734,658	54,041,682	216,734,658	3,636,421	975,484	0
Claims on foreign sovereigns and their Central Banks	949,477	–	949,477	–	189,895	20
Claims on public sector entities	11,538,209	–	–	–	–	0
Claims on official entities and multilateral development banks	–	–	–	–	–	0
Claims on banks exposures	28,526,230	24,111,920	28,526,230	490,765	11,097,901	38
Claims on financial institutions	8,408,608	–	8,408,608	–	4,238,544	50
Claims on corporates	159,844,091	31,226,911	132,593,701	13,697,160	143,434,881	98
Retail claims	85,575,300	8,282,737	85,575,300	5,834,983	68,309,130	75
Claims secured by residential property	10,244,972	–	10,244,972	–	3,585,740	35
Claims secured by commercial real estate	50,132,495	–	50,132,495	–	50,132,495	100
Non-performing assets (NPAs) (i)	36,160,648	–	36,160,648	–	42,336,825	117
Higher-risk categories	532,628	–	532,628	–	1,331,570	250
Cash items and other assets	17,231,388	87,463,894	17,231,388	–	6,094,039	35
Total	625,878,704	205,127,144	587,090,105	23,659,329	331,726,504
Group
Claims on Central Government and CBSL	216,797,386	54,041,682	216,797,386	3,636,421	975,484	0
Claims on foreign sovereigns and their Central Banks	949,477	–	949,477	–	189,895	20
Claims on public sector entities	11,538,209	–	–	–	–	0
Claims on official entities and multilateral development banks	–	–	–	–	–	0
Claims on banks exposures	28,614,245	24,111,920	28,614,245	490,765	11,131,142	38
Claims on financial institutions	8,408,608	–	8,408,608	–	4,238,544	50
Claims on corporates	159,607,056	31,226,911	132,356,666	13,697,160	143,197,846	98
Retail claims	85,575,300	8,282,737	85,575,300	5,834,983	68,309,130	75
Claims secured by residential property	10,244,972	–	10,244,972	–	3,585,740	35
Claims secured by commercial real estate	50,132,495	–	50,132,495	–	50,132,495	100
Non-performing assets (NPAs) (i)	36,160,648	–	36,160,648	–	42,336,825	117
Higher-risk categories	585,274	–	585,274	–	1,463,184	250
Cash items and other assets	17,921,711	87,463,894	17,921,711	–	6,779,768	38
Total	626,535,381	205,127,144	587,746,782	23,659,329	332,340,053

Note:

(i) NPAs – As per Banking Act Directions on Classification of loans and advances, income recognition and provisioning

(ii) RWA Density – Total RWA/Exposures post CCF and CRM.

Credit Risk under Standardised Approach: Exposures by Asset Classes and Risk Weights

BANK Description	Amount (LKR ’000) as at 31 December 2023 (Post CCF and CRM)				Amount (LKR ’000) as at 31 December 2023 (Post CCF and CRM)
Asset classes \ Risk weight	0%	20%	35%	50%	60%	75%	100%	150%	>150%	Total credit exposures amount
Claims on Central Government and CBSL	215,493,661	4,877,418	–	–	–	–	–	–	–	220,371,079
Claims on foreign sovereigns and their Central Banks	–	949,477	–	–	–	–	–	–	–	949,477
Claims on public sector entities	–	–	–	–	–	–	–	–	–	–
Claims on official entities and multilateral development banks	–	–	–	–	–	–	–	–	–	–
Claims on banks exposures	–	16,329,962	–	9,710,248	–	–	2,976,785	–	–	29,016,995
Claims on financial institutions	–	502,117	–	7,536,740	–	–	369,751	–	–	8,408,608
Claims on corporates	–	1,674,847	–	3,032,204	–	–	141,583,810	–	–	146,290,861
Retail claims	10,877,745	2,248,693	–	–	393,040	41,068,954	36,821,851	–	–	91,410,283
Claims secured by residential property	–	–	10,244,972	–	–	–	–	–	–	10,244,972
Claims secured by commercial real estate	–	–	–	–	–	–	50,132,495	–	–	50,132,495
Non-performing assets (NPAs)	–	–	–	501,057	–	–	22,806,180	12,853,411	–	36,160,648
Higher-risk categories	–	–	–	–	–	–	–	–	532,628	532,628
Cash items and other assets	10,811,747	407,001	–	–	–	–	6,012,640	–	–	17,231,388
Total	237,183,153	26,989,515	10,244,972	20,780,249	393,040	41,068,954	260,703,512	12,853,411	532,628	610,749,434

GROUP Description	Amount (LKR ’000) as at 31 December 2023 (Post CCF and CRM)				Amount (LKR ’000) as at 31 December 2023 (Post CCF and CRM)
Asset classes \ Risk weight	0%	20%	35%	50%	60%	75%	100%	150%	>150%	Total credit exposures amount
Claims on Central Government and CBSL	215,556,389	4,877,418	–	–	–	–	–	–	–	220,433,807
Claims on foreign sovereigns and their Central Banks	–	949,477	–	–	–	–	–	–	–	949,477
Claims on public sector entities	–	–	–	–	–	–	–	–	–	–
Claims on official entities and multilateral development banks	–	–	–	–	–	–	–	–	–	–
Claims on banks exposures	–	16,365,852	–	9,762,373	–	–	2,976,785	–	–	29,105,010
Claims on financial institutions	–	502,117	–	7,536,740	–	–	369,751	–	–	8,408,608
Claims on corporates	–	1,674,847	–	3,032,204	–	–	141,346,775	–	–	146,053,826
Retail claims	10,877,745	2,248,693	–	–	393,040	41,068,954	36,821,851	–	–	91,410,283
Claims secured by residential property	–	–	10,244,972	–	–	–	–	–	–	10,244,972
Claims secured by commercial real estate	–	–	–	–	–	–	50,132,495	–	–	50,132,495
Non-performing assets (NPAs)	–	–	–	501,057	–	–	22,806,180	12,853,411	–	36,160,648
Higher-risk categories	–	–	–	–	–	–	–	–	585,274	585,274
Cash items and other assets	10,816,341	407,001	–	–	–	–	6,698,369	–	–	17,921,711
Total	237,250,475	27,025,405	10,244,972	20,832,374	393,040	41,068,954	261,152,206	12,853,411	585,274	611,406,111

Market Risk under Standardised Measurement Method

	31 December 2023 RWA amount
Item	Bank LKR ’000	Group LKR ’000
(a) RWA for interest rate risk	1,498,057	1,498,057
General interest rate risk	1,498,057	1,498,057
(i) Net long or short position	1,498,057	1,498,057
(ii) Horizontal disallowance	–	–
(iii) Vertical disallowance	–	–
(iv) Options	–	–
Specific interest rate risk	–	–
(b) RWA for equity	171,566	171,566
(i) General equity risk	91,971	91,971
(ii) Specific equity risk	79,595	79,595
(c) RWA for foreign exchange and gold	88,103	88,103
Capital charge for market risk [(a) + (b) + (c)] * CAR	14,061,808	14,061,808

Operational Risk Under Basic Indicator Approach/The Standardised Approach/The Alternative Standardised Approach

Business lines	Capital charge factor	Fixed factor	Gross Income (LKR ’000) as at 31 December
			2023	2022	2021
BANK
The basic indicator approach	15%		37,008,546	30,754,817	17,111,682
The standardised approach
Corporate finance	18%
Trading and sales	18%
Payment and settlement	18%
Agency services	15%
Asset management	12%
Retail brokerage	12%
Retail banking	12%
Commercial banking	15%
The alternative standardised approach
Corporate finance	18%
Trading and sales	18%
Payment and settlement	18%
Agency services	15%
Asset management	12%
Retail brokerage	12%
Retail banking	12%	0.035
Commercial banking	15%	0.035
Capital charges for operational risk (LKR ’000)
The basic indicator approach	4,243,752
The standardised approach
The alternative standardised approach
Risk weighted amount for operational risk (LKR ’000)
The basic indicator approach	33,950,018
The standardised approach
The alternative standardised approach
Group
The basic indicator approach	15%		37,679,641	31,340,647	17,519,559
The standardised approach
Corporate finance	18%
Trading and sales	18%
Payment and settlement	18%
Agency services	15%
Asset management	12%
Retail brokerage	12%
Retail banking	12%
Commercial banking	15%
The alternative standardised approach
Corporate finance	18%
Trading and sales	18%
Payment and settlement	18%
Agency services	15%
Asset management	12%
Retail brokerage	12%
Retail banking	12%	0.035
Commercial banking	15%	0.035
Capital charges for operational risk (LKR ’000)
The basic indicator approach	4,326,992
The standardised approach
The alternative standardised approach
Risk weighted amount for operational risk (LKR ’000)
The basic indicator approach	34,615,939
The standardised approach
The alternative standardised approach

Main features of regulatory capital instruments

Description of the Capital Instrument (Bank Only)	Stated Capital	Subordinated Term-debt (2018 – Type B)	Subordinated Term-debt (2020 – Type A)	Subordinated Term-debt (2020 - Type B)
Issuer	DFCC Bank PLC	DFCC Bank PLC	DFCC Bank PLC	DFCC Bank PLC
Unique Identifier (e.g., ISIN or Bloomberg identifier for private placement)	LK0055N00000	C-2394	C-2458	C-2457
Governing Law(s) of the Instrument	Companies Act, No. 07 of 2007, Colombo Stock Exchange Regulations
Original date of issuance	N/A	26 March 2018	23 October 2020	23 October 2020
Par value of instrument (LKR)		100	100	100
Perpetual or dated	Perpetual	Dated	Dated	Dated
Original maturity date, if applicable	N/A	29th March 2025	23 October 2025	23 October 2027
Amount recognised in regulatory capital (in LKR ’000 as at 31 December 2023)	13,866,557	1,634,612	1,727,200	164,000
Accounting classification (Equity/liability)	Equity	Liability	Liability	Liability
Issuer call subject to prior supervisory approval
Optional call date, contingent call dates and redemption amount (LKR ’000)	N/A	N/A	N/A	N/A
Subsequent call dates, if applicable	N/A	N/A	N/A	N/A
Coupons/dividends
Fixed or floating dividend/coupon	Floating dividend	Fixed coupon	Fixed coupon	Fixed coupon
Coupon rate and any related index (%)	N/A	13.00% p.a	9.00% p.a	9.25% p.a
Non-cumulative or cumulative	Non-cumulative	Non-Cumulative	Non-Cumulative	Non-Cumulative
Convertible or non-convertible	Non-convertible	Convertible	Convertible	Convertible
If Convertible, conversion trigger (s)	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	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	Fully	Fully	Fully
If Convertible, mandatory or optional	N/A	Mandatory	Mandatory	Mandatory
If Convertible, conversion rate	N/A	Based on the simple average of the daily Volume Weighted Average Price (VWAP) of an ordinary voting shares during the three months (0-3) period, immediately preceding the date of the Trigger Event.	Based on the simple average of the daily Volume Weighted Average Price (VWAP) of an ordinary voting shares during the three months (0-3) period, immediately preceding the date of the Trigger Event.	Based on the simple average of the daily Volume Weighted Average Price (VWAP) of an ordinary voting shares during the three months (0-3) period, immediately preceding the date of the Trigger Event.