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Supplementary Information

Market discipline – disclosure requirements pillar III

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Cloud 1

(As per Banking Act Direction No. 01 of 2016)

Disclosure 1
Key Regulatory Ratios – Capital and Liquidity
Item
 31 December 2024 31 December 2023
Bank
 Group
 Bank
 Group
Regulatory capital (LKR ’000)
Common equity Tier 1 52,485,838 57,804,406 43,632,490 47,491,186
Tier 1 capital 52,485,838 57,804,406 43,632,490 47,491,186
Total capital 66,693,851 72,021,286 51,304,883 55,171,249
Regulatory capital ratios (%)
Common equity Tier 1 capital ratio (Minimum requirement – 7.00%) 12.40 13.61 11.49 12.46
Tier 1 capital ratio (Minimum requirement – 8.50%) 12.40 13.61 11.49 12.46
Total capital ratio (Minimum requirement – 12.50%) 15.76 16.96 13.51 14.48
Leverage Ratio (Minimum Requirement – 3%) 7.33 8.03 6.25 6.77
Regulatory Liquidity
Statutory Liquid Assets (Rs 000) N/A N/A 189,469,687 N/A
Statutory Liquid Assets Ratio (Minimum Requirement – 20%)
Bank (%) N/A N/A 36.63 N/A
Liquidity Coverage Ratio (%) – Rupee (Minimum Requirement -100%) 310.01 N/A 715.50 N/A
Liquidity Coverage Ratio (%) – All Currency (Minimum Requirement -100%) 280.26 N/A 597.47 N/A
Net Stable Funding Ratio (%) (Minimum Requirement -100%) 124.60 N/A 124.60 N/A

Disclosure 2
Basel III Computation of Capital Ratios
Item
 31 December 2024 31 December 2023
Bank
LKR ’000
 Group
LKR ’000
 Bank
LKR ’000
 Group
LKR ’000
Common equity Tier 1 (CET1) capital after adjustments 52,485,838 57,804,406 43,632,490 47,491,186
Common equity Tier 1 (CET1) capital 71,009,611 77,842,985 61,524,384 66,919,617
Equity capital (stated capital)/assigned capital 14,710,454 14,710,454 13,866,557 13,866,557
Reserve fund 3,657,968 3,657,968 3,239,968 3,239,968
Published retained earnings/
(accumulated retained losses) 		35,834,730 42,668,104 28,250,357 33,645,590
Published accumulated Other
Comprehensive Income (OCI) 		3,026,620 3,026,620 2,387,663 2,387,663
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Unpublished current year's profit/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 18,523,773 20,038,579 17,891,894 19,428,431
Goodwill (net) – 156,226 – 156,226
Intangible assets (net) 2,001,636 2,013,975 1,926,287 1,945,030
Investment in capital of banks
and financial institutions 		11,180,665 12,507,386 10,114,730 11,468,498
Others 5,341,472 5,360,992 5,850,877 5,858,677
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 14,208,013 14,216,880 7,672,393 7,680,063
Tier 2 capital 14,208,013 14,216,880 7,672,393 7,680,063
Qualifying Tier 2 capital instruments 9,803,906 9,803,906 3,525,812 3,525,812
Revaluation gains – – – –
Loan loss provisions 4,404,107 4,412,974 4,146,581 4,154,251
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 52,485,838 57,804,406 43,632,490 47,491,186
Total Tier 1 capital 52,485,838 57,804,406 43,632,490 47,491,186
Total capital 66,693,851 72,021,286 51,304,883 55,171,249
Total risk weighted assets (RWA)
RWAs for credit risk 352,328,550 353,037,904 331,726,504 332,340,053
RWAs for market risk 27,403,720 27,403,720 14,061,808 14,061,808
RWAs for operational risk 43,468,784 44,241,426 33,950,018 34,615,939
CET1 capital ratio (including capital conservation buffer, countercyclical capital buffer and surcharge on d-sibs) (%) 12.40 13.61 11.49 12.46
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 (%) 12.40 13.61 11.49 12.46
Total capital ratio (including capital conservation buffer, countercyclical capital buffer and surcharge on d-sibs) (%) 15.76 16.96 13.51 14.48
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

Disclosure 3
Basel III Computation of Leverage ratio

Item
 31 December 2024 31 December 2023
Bank
LKR ’000
 Group
LKR ’000
 Bank
LKR ’000
 Group
LKR ’000
Tier 1 Capital 52,485,838 57,804,406 43,632,490 47,491,186
Total Exposures 715,921,306 720,097,361 698,237,531 701,271,268
On-Balance Sheet Items
(excluding securities financing transactions, but including collateral) 672,489,151 676,665,206 604,132,634 607,166,371
Derivative Exposures 16,753,173 16,753,173 72,602,003 72,602,003
Securities Financing Transaction Exposures 2,851,459 2,851,459 1,974,425 1,974,425
Other Off-Balance Sheet Exposures 23,827,523 23,827,523 19,528,469 19,528,469
Basel III Leverage Ratio (%) (Tier 1/Total Exposure) (Minimum requirement 3%) 7.33 8.03 6.25 6.77

Disclosure 4
Basel III Computation of Liquidity Coverage Ratio (LCR) – All Currencies
Amount (LKR ’000)
31 December 2024 31 December 2023
Item
 Total
un-weighted
value
 Total
weighted
value
 Total
un-weighted
value
 Total
weighted
value
Total stock of High-Quality Liquid Assets (HQLA) 190,863,719 189,840,978 152,762,344 151,562,260
Total adjusted level 1A assets 188,818,237 188,818,237 148,747,554 148,747,554
Level 1 assets 188,818,237 188,818,237 148,747,554 148,747,554
Total adjusted level 2A assets – – 2,306,603 1,960,613
Level 2A assets – – 2,306,603 1,960,613
Total adjusted level 2B assets 2,045,482 1,022,741 1,708,187 854,093
Level 2B assets 2,045,482 1,022,741 1,708,187 854,093
Total cash outflows 605,544,252 107,121,287 584,446,642 89,080,919
Deposits 327,258,102 28,901,213 300,166,130 26,997,638
Unsecured wholesale funding 134,877,080 64,457,610 109,168,821 53,262,615
Secured funding transactions 25,427,972 – 43,752,861 –
Undrawn portion of committed (irrevocable) facilities and other contingent funding obligations 112,674,385 8,455,751 130,623,427 8,085,263
Additional requirements 5,306,713 5,306,713 735,403 735,403
Total cash inflows 59,200,684 39,384,729 77,169,785 63,713,421
Maturing secured lending transactions backed by collateral 25,763,891 18,588,160 26,780,604 25,793,392
Committed facilities – – – –
Other inflows by counterparty which are maturing within 30 Days 28,461,057 19,479,105 46,800,877 37,755,736
Operational deposits 2,435,145 – 3,259,718 –
Other cash inflows 2,540,591 1,317,464 328,586 164,293
Liquidity coverage Ratio (%) (Stock of high quality liquid assets/total net cash outflows over the next 30 calendar days) *100 280.26 597.47

Basel III Computation of Liquidity Coverage Ratio (LCR) – LKR only

Amount (LKR ’000)
31 December 2024 31 December 2023
Item
 Total
un-weighted
value
 Total
weighted
value
 Total
un-weighted
value
 Total
weighted
value
Total stock of High-Quality Liquid Assets (HQLA) 190,127,663 189,104,922 150,243,525 149,389,432
Total adjusted level 1A assets 188,082,181 188,082,181 148,535,338 148,535,338
Level 1 assets 188,082,181 188,082,181 148,535,338 148,535,338
Total adjusted level 2A assets – – – –
Level 2A assets – – – –
Total adjusted level 2B assets 2,045,482 1,022,741 1,708,187 854,094
Level 2B assets 2,045,482 1,022,741 1,708,187 854,094
Total cash outflows 485,610,838 94,439,394 464,356,185 58,215,737
Deposits 285,736,836 24,827,049 264,288,518 23,433,959
Unsecured wholesale funding 70,754,099 37,379,639 55,509,591 28,093,184
Secured funding transactions 25,427,973 – 43,752,860 –
Undrawn portion of committed (irrevocable) facilities and other contingent funding obligations 77,536,349 6,077,125 100,069,813 5,953,191
Additional requirements 26,155,581 26,155,581 735,403 735,403
Total cash inflows 49,098,640 33,438,991 46,552,914 37,336,837
Maturing secured lending transactions
backed by collateral 		23,232,211 16,056,481 24,551,225 23,564,013
Committed facilities – – – –
Other inflows by counterparty which
are maturing within 30 Days 		17,660,717 10,399,925 21,673,103 13,608,531
Operational deposits – – – –
Other cash inflows 8,205,712 6,982,585 328,586 164,293
Liquidity coverage Ratio (%) (Stock of high quality liquid assets/total net cash outflows over the next 30 calendar days) *100 310.01 715.5

Disclosure 5
Basel III Computation of Net stable funding ratio (NSFR)
Bank
Item
 31 December 2024 31 December 2023
Total available stable funding 488,990,770 448,446,564
Required stable funding-On balance sheets assets 386,813,051 358,713,526
Required stable funding-Off balance sheet assets 5,633,720 1,181,497
Total required stable funding 392,446,771 359,895,023
Net Stable Funding Ratio (%) 124.60 124.60

Disclosure 6
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)
 Subordinated Term-debt
(2024 - Type A) 		Subordinated Term-debt
(2024 - 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 C-2394 C-2458 C-2457 C-2523 C-2524
Governing Law(s) of the Instrument Companies Act, No. 07 of 2007, Colombo Stock Exchange Regulations 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 16 January 2024 16 January 2024
Par value of instrument (LKR) 100 100 100 100 100
Perpetual or dated Perpetual Dated Dated Dated Dated Dated
Original maturity date, if applicable N/A 29th March 2025 23 October 2025 23 October 2027 16 January 2029 16 January 2031
Amount recognised in regulatory capital
(in LKR ’000 as at 31 December 2024) 		14,710,454 817,306 863,600 123,000 7,945,230 54,770
Accounting classification (Equity/liability) Equity Liability Liability 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 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 13.00% p.a 9.00% p.a 9.25% p.a 15.25% p.a 14.75% p.a
Non-cumulative or cumulative Non-cumulative Non-Cumulative Non-Cumulative Non-Cumulative Non-Cumulative Non-Cumulative
Convertible or non-convertible Non-convertible Convertible 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 		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 Fully Fully
If Convertible, mandatory or optional N/A Mandatory Mandatory 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. 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.

Disclosure 7
Summary discussion on adequacy/meeting current and future capital requirements

The Bank’s capital planning framework ensures that it maintains adequate capital to support current and future business activities, absorb unexpected losses, and comply with regulatory requirements. Under Basel III’s Pillar II (Supervisory Review Process – SRP), the Bank has implemented an Internal Capital Adequacy Assessment Process (ICAAP) to assess capital adequacy in line with its risk profile and strategic objectives. The ICAAP integrates risk management with capital planning, utilizing both regulatory capital calculations (Pillar I) and economic capital assessments (Pillar II) to cover all material risks. The Bank applies a combination of quantitative and qualitative assessment methods, ensuring a comprehensive evaluation of risk exposures, including credit, market, operational, concentration, liquidity, interest rate, reputational, and strategic risks. This forward-looking approach aligns capital requirements with the Bank’s risk appetite and business expansion plans.

Capital forecasting is conducted over a three-year horizon, considering projected business growth, macroeconomic conditions, and potential stress scenarios. The Bank ensures capital adequacy through internal sources such as retained earnings and profit reinvestment, while also evaluating external sources, including equity issuance and subordinated debt, as needed. Anticipated capital expenditure is factored into capital planning to support business expansion and regulatory compliance. Stress testing is a key component of the ICAAP, enabling the Bank to assess the resilience of its capital position under adverse conditions and proactively manage emerging risks. Regular reviews of risk-weighted assets and capital buffers ensure alignment with evolving regulatory and business requirements.

To address unexpected capital shortfalls or market disruptions, the Bank has a contingency plan that includes raising additional capital, restricting business activities, or deploying risk mitigation techniques. Senior Management actively participates in the capital planning process, ensuring that strategic objectives, risk management frameworks, and capital requirements are well integrated. This disciplined approach enhances the Bank’s financial stability and ensures that it maintains a sufficient capital buffer to absorb potential losses while pursuing sustainable growth.

Refer to the Capital Adequacy Management Section on page 182 of the Annual Report.

Disclosure 8
Credit Risk under Standardised Approach – Credit Risk Exposures and Credit Risk Mitigation (CRM) Effects

As at 31 December 2024
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 243,477,465 61,501,801 243,477,465 2,975,555 – 0
Claims on foreign sovereigns and their Central Banks 595,288 – 595,288 – 119,058 20
Claims on public sector entities 9,699,984 – – – – 0
Claims on official entities and multilateral development banks – – – – – 0
Claims on banks exposures 10,727,258 51,772,550 10,727,258 1,671,191 3,740,152 30
Claims on financial institutions 9,538,837 600,000 9,538,837 300,000 5,567,607 57
Claims on corporates 181,729,518 41,328,561 143,890,247 16,110,354 154,905,619 97
Retail claims 132,331,741 10,167,733 132,331,741 6,834,803 109,418,598 79
Claims secured by residential property 12,311,825 – 12,311,825 – 4,309,139 35
Claims secured by commercial real estate 28,247,533 – 28,247,533 – 28,247,533 100
Non-performing assets (NPAs) (i) 31,404,769 – 31,404,769 – 35,570,913 113
Higher-risk categories 624,868 – 624,868 – 1,562,169 250
Cash items and other assets 19,826,802 85,728,026 19,826,802 – 8,887,762 45
Total 680,515,888 251,098,671 632,976,633 27,891,903 352,328,550
Group
Claims on Central Government and CBSL 243,537,646 61,501,801 243,537,646 2,975,555 – 0
Claims on foreign sovereigns and their Central Banks 595,288 – 595,288 – 119,058 20
Claims on public sector entities 9,699,984 – – – – 0
Claims on official entities and multilateral development banks – – – – – 0
Claims on banks exposures 10,727,258 51,772,550 10,727,258 1,671,191 3,740,152 30
Claims on financial institutions 9,605,290 600,000 9,605,290 300,000 5,600,834 57
Claims on corporates 181,492,483 41,328,561 143,653,212 16,110,354 154,668,584 97
Retail claims 132,331,741 10,167,733 132,331,741 6,834,803 109,418,598 79
Claims secured by residential property 12,311,825 – 12,311,825 – 4,309,139 35
Claims secured by commercial real estate 28,247,533 – 28,247,533 – 28,247,533 100
Non-performing assets (NPAs) (i) 31,404,769 – 31,404,769 – 35,570,913 113
Higher-risk categories 691,985 – 691,985 – 1,729,963 250
Cash items and other assets 20,590,841 85,728,026 20,590,841 – 9,633,130 47
Total 681,236,643 251,098,671 633,697,388 27,891,903 353,037,904

Disclosure 9
Credit Risk under Standardised Approach:
Exposures by asset classes and risk weights
(Post CCF & CRM) – Bank

BANK
Description
 Amount (LKR ’000) as at 31 December 2024
(Post CCF and CRM) 		Amount (LKR ’000) as at 31 December 2024
(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 246,453,020 – – – – – – – – 246,453,020
Claims on foreign sovereigns
and their Central Banks 		– 595,288 – – – – – – – 595,288
Claims on public sector entities – – – – – – – – – –
Claims on official entities and
multilateral development banks 		– – – – – – – – – –
Claims on banks exposures – 9,850,116 – 1,556,409 – – 991,924 – – 12,398,449
Claims on financial institutions – 100,296 – 8,381,986 – – 1,356,555 – – 9,838,837
Claims on corporates – 978,963 – 8,623,624 – – 150,398,014 – – 160,000,601
Retail claims 8,587,635 7,480,511 – – 2,686,609 56,405,033 64,006,756 – – 139,166,544
Claims secured by residential property – – 12,311,825 – – – – – – 12,311,825
Claims secured by commercial real estate – – – – – – 28,247,533 – – 28,247,533
Non-performing assets (NPAs) – – – 517,246 – – 22,037,989 8,849,534 – 31,404,769
Higher-risk categories – – – – – – – – 624,868 624,868
Cash items and other assets 10,487,340 564,624 – – – – 8,774,838 – – 19,826,802
Total 265,527,995 19,569,798 12,311,825 19,079,265 2,686,609 56,405,033 275,813,609 8,849,534 624,868 660,868,536

Credit Risk under Standardised Approach:
Exposures by asset classes and risk weights
(Post CCF & CRM) – group

GROUP
Description
 Amount (LKR ’000) as at 31 December 2024
(Post CCF and CRM) 		Amount (LKR ’000) as at 31 December 2024
(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 246,513,201 – – – – – – – – 246,513,201
Claims on foreign sovereigns
and their Central Banks 		– 595,288 – – – – – – – 595,288
Claims on public sector entities – – – – – – – – – –
Claims on official entities and
multilateral development banks 		– – – – – – – – – –
Claims on banks exposures – 9,850,116 – 1,556,409 – – 991,924 – – 12,398,449
Claims on financial institutions – 100,296 – 8,448,439 – – 1,356,555 – – 9,905,290
Claims on corporates – 978,963 – 8,623,624 – – 150,160,979 – – 159,763,566
Retail claims 8,587,635 7,480,511 – – 2,686,609 56,405,033 64,006,756 – – 139,166,544
Claims secured by residential property – – 12,311,825 – – – – – – 12,311,825
Claims secured by commercial real estate – – – – – – 28,247,533 – – 28,247,533
Non-performing assets (NPAs) – – – 517,246 – – 22,037,989 8,849,534 – 31,404,769
Higher-risk categories – – – – – – – – 691,985 691,985
Cash items and other assets 10,506,010 564,624 – – – – 9,520,207 – – 20,590,841
Total 265,606,846 19,569,798 12,311,825 19,145,718 2,686,609 56,405,033 276,321,943 8,849,534 691,985 661,589,291

Disclosure 10
Market Risk under Standardised Measurement Method
31 December 2024
RWA amount
Item
 BANK
LKR ’000
 GROUP
LKR ’000
(a) RWA for interest rate risk 2,844,269 2,844,269
General interest rate risk 2,844,269 2,844,269
(i) Net long or short position 2,844,269 2,844,269
(ii) Horizontal disallowance – –
(iii) Vertical disallowance – –
(iv) Options – –
Specific interest rate risk – –
(b) RWA for equity 418,201 418,201
(i) General equity risk 225,023 225,023
(ii) Specific equity risk 193,178 193,178
(c) RWA for foreign exchange and gold 162,995 162,995
Capital charge for market risk [(a) + (b) + (c)] * CAR 27,403,720 27,403,720

Disclosure 11
Operational Risk – Bank
Operational Risk under Basic Indicator Approach
Business lines
 Capital
charge
factor
 Fixed
factor
 Gross Income (LKR ’000)
as at 31 December
2024 2023 2022
BANK
The basic indicator approach 15% 40,262,262 37,654,880 30,754,817
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 5,433,598
The standardised approach
The alternative standardised approach

Operational Risk – group Operational Risk under Basic Indicator Approach

Business lines
 Capital
Charge
Factor
 Fixed
Factor
 Gross income (LKR ’000)
as at 31 December
2024 2023 2022
Risk weighted amount for operational risk (LKR ’000)
The basic indicator approach 43,468,784
The standardised approach
The alternative standardised approach
Group
The basic indicator approach 15% 40,936,942 38,325,975 31,340,647
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 5,530,178
The standardised approach
The alternative standardised approach
Risk weighted amount for operational risk (LKR ’000)
The basic indicator approach 44,241,426
The standardised approach
The alternative standardised approach

Disclosure 12
Differences between Accounting and Regulatory Scopes and Mapping of Financial Statement Categories with Regulatory Risk Categories – Bank Only
as at 31 December
 2024
Item
 Carrying
Values as
Reported in
Published
Financial
Statements
Statements
LKR ’000
 Carrying
Values under
Scope of
Regulatory
Reporting


LKR ’000
 Subject to
Credit Risk





LKR ’000
 Subject to
Market
Risk




LKR ’000
 Not subject to
Capital
Requirements
or Subject to
Deduction
from Capital

LKR ’000
Assets 703,507,826 703,507,826 669,910,965 3,374,092 30,222,769
Cash and cash equivalents 13,504,806 13,504,806 13,504,806 – –
Balances with Central Bank
of Sri Lanka 		2,328,346 2,328,346 2,328,346 – –
Placements with Banks 11,229,492 11,229,492 11,229,492 – –
Derivative financial assets 9,643,442 9,643,442 9,643,442 – –
Financial Assets measured at fair value through profit or loss 7,416,018 7,416,018 4,041,926 3,374,092 –
Financial assets at amortized cost – Loans and advances to banks 1,500,338 1,500,338 1,500,338 – –
Financial assets at amortized cost – Loans and advances to customers 394,361,480 394,361,480 394,361,480 – –
Financial assets measured
at fair value through other comprehensive income 		105,641,690 105,641,690 105,641,690 – –
Investments in subsidiaries 138,258,226 138,258,226 116,166,735 – 22,091,491
Investments in associates 237,035 237,035 237,035 – –
Investments in joint ventures 33,169 33,169 – – 33,169
Investment properties 9,879 9,879 9,879 – –
Property, plant and equipment 3,872,654 3,872,654 3,872,654 – –
Intangible assets and goodwill 2,001,636 2,001,636 – – 2,001,636
Deferred tax assets 4,893,483 4,893,483 – – 4,893,483
Other assets 7,821,132 7,821,132 7,373,142 – 447,990
Assets held for sale 755,000 755,000 – – 755,000
Liabilities 619,474,829 619,474,829 – – –
Due to Banks 7,149,474 7,149,474 – – –
Derivative financial liabilities 909,188 909,188 – – –
Financial liabilities at amortised cost – Due to depositors 465,153,180 465,153,180 – – –
Financial liabilities at amortised
cost – Due to other borrowers 		96,755,632 96,755,632 – – –
Debt securities issued 14,690,723 14,690,723 – – –
Employee benefits 1,409,232 1,409,232 – – –
Current tax liabilities 3,066,586 3,066,586 – – –
Other liabilities and provisions 12,106,760 12,106,760 – – –
Subordinated term debt 18,234,054 18,234,054 – – –
as at 31 December
 2024
Item
 Carrying
Values as
Reported in
Published
Financial
Statements
Statements
LKR ’000
 Carrying
Values under
Scope of
Regulatory
Reporting


LKR ’000
 Subject to
Credit Risk




LKR ’000
 Subject to
Market
Risk


LKR ’000
 Not subject to
Capital
Requirements
or Subject to
Deduction
from Capital
LKR ’000
Off-balance sheet liabilities 222,538,011 222,538,011 220,241,741 – –
Guarantees 18,751,901 18,751,901 18,751,901 – –
Performance bonds 5,285,654 5,285,654 5,285,654 – –
Letters of credit 22,354,686 22,354,686 22,354,686 – –
Other contingent items 3,239,123 3,239,123 942,853 – –
Undrawn loan commitments 89,963,162 89,963,162 89,963,162 – –
Other commitments 82,943,485 82,943,485 82,943,485 – –
Shareholders' equity 84,032,997 84,032,997 – – –
Equity capital (Stated Capital/Assigned Capital) of which amount eligible for CET1 14,710,454 14,710,454 – – –
of which amount eligible for AT1 – – – – –
Retained earnings 35,834,730 35,834,730 – – –
Accumulated other comprehensive income 15,385,597 15,385,597 – – –
Other reserves 18,102,216 18,102,216 – – –

Disclosure 13
Bank risk management approach

Refer to the Integrated Risk Management Section from page 160 to page 184 and Financial Risk Review Section from page 246 to page 276 of the Annual Report.

Disclosure 14
RISK MANAGEMENT RELATED TO KEY RISK EXPOSURES

Refer to the Integrated Risk Management Section from page 160 to page 184 and Financial Risk Review Section from page 246 to page 276 of the Annual Report.

Assessment of domestic systemically important banks (D-SIBs)

GROUP
 As at 31 December 2024
LKR ’000
Size Indicator
Section 1 Total Exposures
Total exposure measure 720,097,362
Interconnectedness Indicators
Section 2 – Intra-Financial System Assets
a. Funds deposited with or lent to other financial institutions
(including unused portion of committed lines extended)
i) Funds deposited 11,164,371
ii) Lending 27,274,948
b. Holdings of securities issued by other financial institutions 23,537,241
c. Net positive current exposure of securities financing transactions (SFTs)
with other financial institutions 		1,554,461
d. Over-the-counter (OTC) derivatives with other financial institutions that
have a net positive mark to mark value 		524,926
Intra-financial system assets 64,055,947
Section 3 – Intra-Financial System Liabilities
a. Funds deposited by or borrowed from other financial institutions
(including unused portion of committed lines obtained)
i) Funds deposited 14,105,365
ii) Borrowings 47,522,060
b. Net negative current exposure of securities financing transactions
with other financial institutions 		156,019
c. Over-the – counter derivatives with other financial institutions that
have a net negative mark to mark value 		172,900
Intra-financial system liabilities 61,956,344
Section 4 – Securities Outstanding
Securities outstanding 32,924,778
Sustainability/Financial Institutions Infrastructure Indicators
Section 5 – Payment made in the reporting year (excluding intragroup payments)
Payment activity 2,008,123,269
Section 6 – Assets Under Custody
Assets under custody –
Section 7 – Underwritten Transactions
Underwritten transactions –
Section 8 – Trading Volume
Trading volume (Number in thousands) 173,742
Complexity Indicators
Section 9 – Notional Amount of Over-the-Counter (OTC) Derivatives
OTC derivatives 82,943,485
Section 10 – Level 2 Assets
Level 2 assets 2,671,318
Section 11 – Trading and available for sale (AFS) securities
Trading and AFS securities 145,674,244
Section 12 – Cross-Jurisdictional Liabilities
Foreign liabilities (excluding derivatives and intragroup liabilities) 48,963,347
Cross-jurisdictional liabilities 48,963,347
Section 13 – Cross-Jurisdictional Claims
Foreign claims (excluding derivatives and intragroup claims) 28,737,608
Cross-jurisdictional claims 28,737,608

As per the Banking Act Direction No. 10 of 2019 – Framework for Dealing with Domestic Systemically important Banks.

Maturity of Assets and Liabilities

2024
As at 31 December
 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 13,504,806 – – – – – – 13,504,806
Balances with Central Bank
of Sri Lanka 		2,328,346 – – – – – – 2,328,346
Placement with banks 11,229,492 – – – – – – 11,229,492
Derivative financial assets 90,020 662,749 607,485 1,210,278 5,111,497 1,961,413 – 9,643,442
Financial assets
measured at fair value through profit or loss 		84,561 6,594 – 1,737,541 – 5,587,322 7,416,018
Financial assets
at amortised cost - Loans
and advances to banks 		1,500,338 – – – – – – 1,500,338
Financial assets at
amortised cost – Loans and advances to customers 		32,436,512 62,539,088 41,380,654 50,362,955 111,042,995 39,801,554 56,797,722 394,361,480
Financial assets at
amortised cost – Debt
and other instruments 		1,968,781 1,471,837 12,821,143 1,299,203 32,685,637 41,947,893 13,447,196 105,641,690
Financial assets measured at fair value through other comprehensive income 2,432,441 4,300,057 30,804,112 34,146,084 39,681,028 2,247,371 24,647,133 138,258,226
Other assets 4,084,635 7,287 65,521 112,542 217,684 181,705 277,154 4,946,528
Total financial assets 69,659,932 68,987,612 85,678,915 87,131,062 190,476,382 86,139,936 100,756,527 688,830,366
Financial liabilities
Due to banks 17,698 2,689,069 4,442,707 – – – – 7,149,474
Derivative assets held –
for – risk – management 		99,031 632,537 177,620 – – – – 909,188
Financial liabilities
at amortised cost –
Due to depositors 		43,302,232 102,316,706 86,880,436 90,005,575 81,593,914 32,251,952 28,802,365 465,153,180
Financial liabilities
at amortised cost –
Due to other borrowers 		25,250,598 16,502,081 6,163,590 11,757,508 23,145,660 10,451,736 3,484,459 96,755,632
Debt securities issued – 642,356 5,299,812 67,456 4,270,068 4,411,031 – 14,690,723
Other liabilities 5,307,760 50,362 92,099 142,700 505,933 395,075 947,391 7,441,320
Subordinated term debt 1,169,078 4,483,582 – 4,388,242 197,069 7,941,332 54,751 18,234,054
Total financial liabilities 75,146,397 127,316,693 103,056,264 106,361,481 109,712,644 55,451,126 33,288,966 610,333,571
Total net financial
assets/(liabilities) 		(5,486,465) (58,329,081) (17,377,349) (19,230,419) 80,763,738 30,688,810 67,467,561 78,496,795
Contingencies
Guarantees – – – – – – 4,985,445 4,985,445
Acceptance 70,079 7,499,776 1,031,408 14,670 4,153,153 3,575,370 – 16,344,456
Performance bonds 651,655 1,438,940 1,243,641 962,044 972,504 16,869 – 5,285,653
Forward contracts 13,054,961 24,706,110 19,772,096 3,714,540 15,537,463 6,158,315 – 82,943,485
Documentary credit 1,002,836 10,751,708 1,452,332 1,394,074 2,066,938 5,686,798 – 22,354,686
Total Contingencies 14,779,531 44,396,534 23,499,477 6,085,328 22,730,058 15,437,352 4,985,445 131,913,725
Commitments
Commitments in ordinary course of business – Commitments for unutilised credit facilities 89,963,162 – – – – – – 89,963,162
Capital commitments 661,124 – – – – – – 661,124
Total commitments 90,624,286 – – – – – – 90,624,286
Total commitments
and contingencies 		105,403,817 44,396,534 23,499,477 6,085,328 22,730,058 15,437,352 4,985,445 222,538,011
2023
As at 31 December
 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
and advances to 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 3,277,473 548,088 232,347 20,066 22,622 19,002 6,902,111 11,021,709
Total financial assets 113,911,277 87,710,997 78,324,704 30,485,598 165,479,705 73,853,910 76,921,503 626,687,694
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 issued – 4,832,618 290,688 – 6,777,101 – 4,411,170 16,311,577
Other liabilities 3,166,193 884,053 68,956 141,728 519,793 370,474 867,269 6,018,466
Subordinated term debt – 396,257 – 69,537 8,401,546 204,925 – 9,072,265
Total financial liabilities 94,581,850 104,588,431 89,617,445 96,576,503 67,519,672 77,670,859 33,270,712 563,825,472
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

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

2024
As at 31 December
 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 50,868 65,104 30,632 17,281 42,846 21,315 38,574 266,620
Total liabilities 35,828 84,630 83,754 127,518 94,860 49,094 26,161 501,845
Total net financial
assets/(liabilities) 		15,040 (19,526) (53,122) (110,237) (52,014) (27,779) 12,413 (235,225)
2023
As at 31 December
 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)

Sensitivity of Financial Assets and Financial Liabilities

As at 31
December
Bank
 2024
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 204,107 – – – – – – 13,300,699 13,504,806
Balances with Central Bank
of Sri Lanka 		– – – – – – – 2,328,346 2,328,346
Placement
with banks 		10,457,186 297,677 – – – – – 474,629 11,229,492
Derivative
financial assets 		– – – – – – – 9,643,442 9,643,442
Financial assets measured at fair
value through profit or loss 		61,447 23,116 6,593 – – 1,737,540 – 5,587,322 7,416,018
Financial assets at amortised cost – Loans and advances to banks 1,500,338 – – – – – – – 1,500,338
Financial assets at amortised cost – Loans and advances to customers 150,458,026 55,268,447 22,966,380 31,789,811 26,626,948 43,996,279 41,194,278 22,061,311 394,361,480
Financial assets
at amortised cost – Debt and other instruments 		1,968,800 1,471,837 12,821,143 1,299,203 32,685,619 41,947,892 13,447,196 – 105,641,690
Financial assets measured at fair value through other comprehensive
income 		2,492,757 3,839,705 31,271,210 17,713,405 18,283,967 38,354,145 1,739,327 24,563,710 138,258,226
Other assets – – – – – – – 4,946,528 4,946,528
Total financial
assets 		167,142,661 60,900,782 67,065,326 50,802,419 77,596,534 126,035,856 56,380,801 82,905,987 688,830,366
Financial
liabilities
Due to banks 7,135,609 – – – – – – 13,865 7,149,474
Derivative financial liabilities – – – – – – – 909,188 909,188
Financial liabilities
at amortised cost – Due to depositors 		134,139,528 87,771,237 77,848,272 80,629,995 51,304,888 15,645,061 98,395 17,715,804 465,153,180
Financial liabilities
at amortised cost – Due to other
borrowers 		25,902,185 15,681,387 6,651,748 11,713,849 23,083,642 10,328,908 3,393,913 – 96,755,632
Debt securities
issued 		– – 5,645,447 – 4,583,880 4,461,396 – – 14,690,723
Other liabilities – – – – – – – 7,441,320 7,441,320
Subordinated
term debt 		– 5,635,605 – 4,318,000 280,448 7,945,230 54,771 – 18,234,054
Total financial
liabilities 		167,177,322 109,088,229 90,145,467 96,661,844 79,252,858 38,380,595 3,547,079 26,080,177 610,333,571
Interest rate sensitivity gap (34,661) (48,187,447) (23,080,141) (45,859,425) (1,656,324) 87,655,261 52,833,722 56,825,810
As at 31
December
Bank
 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 and advances to 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 – – – – – – – 11,021,709 11,021,709
Total financial assets 163,959,516 81,899,278 61,201,640 35,221,828 56,886,691 80,413,598 60,233,121 86,872,022 626,687,694
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 issued – 4,819,254 297,082 – 6,784,070 4,411,171 – 16,311,577
Other liabilities – – – – – – – 6,018,466 6,018,466
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 19,157,222 563,825,472
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 67,714,800