Investor Information

1. Listing Details

Listed Exchange	: Colombo Stock Exchange (CSE) - Main Board
Listed Securities	: Ordinary shares
	Rated Unsecured Subordinated Redeemable Debentures
Stock Symbol	: NDB.N0000

2. Submission of Financial Statements to the Colombo Stock Exchange as per Listing Rules - 2013

Financial statements	Submission to CSE as per rule 7.4 & 7.5 of the Listing Rules of the CSE	Date of submission by the Bank	Level of compliance
Unaudited Financial Statements - Q1	Within 45 days from the end of the quarter	14 May 2013	Complied
Unaudited Financial Statements - Q2	Within 45 days from the end of the quarter	14 August 2013	Complied
Unaudited Financial Statements - Q3	Within 45 days from the end of the quarter	14 November 2013	Complied
Unaudited Financial Statements - Q4	Within 60 days from the end of the quarter	13 February 2014	Complied
Audited financial statements for the year ended 31 December 2013	Within five months from the year end	Submitted with the Annual Report of the Company	Complied

The full report on Accounts and Interim Financial Statements can be viewed on our WEB site (http://www.ndbbank.com/Investor and Community Relations)

3. Bank’s Credit Ratings

The Bank’s credit ratings are as follows:

Fitch Ratings Lanka Ltd.

National Long Term Rating	AA (-) lka/Stable Outlook [2012: AA (lka)/Negative Outlook]
International Rating	B+/Stable Outlook

Standard and Poor Rating Services

International Rating	B+ (long-term)/Stable Outlook
	B (Short-Term)/Stable Outlook

4. Analysis of Ordinary Shareholders as at 31 December 2013 as per Rule 7.6 (x) of the Listing Rules of the Colombo Stock Exchange

(i)

			As at 31.12.2013				As at 31.12.2012
Shareholding Range			No. of Shareholders	%	No. of Shares	%	No. of Shareholders	%	No. of Shares	%
1	–	1,000	5,212	67.73	1,760,740	1.10	5,497	65.64	1,956,081	1.19
1,001	–	10,000	2,048	26.61	6,352,964	3.90	2,361	28.19	7,454,083	4.54
10,001	–	100,000	346	4.50	10,076,661	6.10	428	5.11	12,384,077	7.54
100,001	–	1,000,000	61	0.79	20,039,880	12.20	65	0.78	20,884,079	12.72
Over 1,000,000			28	0.37	126,462,789	76.70	23	0.28	116,323,582	70.84
Total			7,695	100.00	164,693,034	100.00	8,374	100.00	159,001,902*	96.83*

* Out of the 164,201,902 shares in issue as at 31 December 2012, 5,200,000 shares which were issued in 2006 representing 3.17% was not allotted.

(ii) Resident/Non-Resident Shareholding

	As at 31.12.2013					As at 31.12.2012
Shareholding	No. of Shareholders	%	No. of Shares	%		No. of Shareholders	%	No. of Shares	%
Resident	7,529	98.00	115,337,647	70.00		8,190	98.00	114,930,484	69.99
Non-resident	166	2.00	49,355,387	30.00		184	2.00	44,071,418	26.86
Total	7,695	100.00	164,693,034	100.00		8,374	100.00	159,001,902*	96.83*

* Out of the 164,201,902 shares in issue as at 31 December 2012, 5,200,000 shares which were issued in 2006 representing 3.17% was not allotted.

(iii) Individual/Institutional Shareholding

	As at 31.12.2013				As at 31.12.2012
Shareholding	No. of Shareholders	%	No. of Shares	%	No. of Shareholders	%	No. of Shares	%
Individual	7,243	94.00	30,769,120	19.00	7,852	94.00	33,477,540	20.38
Institutional	452	6.00	133,923,914	81.00	522	6.00	125,524,362	76.45
Total	7,695	100.00	164,693,034	100.00	8,374	100.00	159,001,902*	96.83*

* Out of the 164,201,902 shares in issue as at 31 December 2012, 5,200,000 shares which were issued in 2006 representing 3.17% was not allotted.

5. 20 Largest Registered Shareholders of the Bank as at 31 December 2013:

		2013		2012
	Name	No of Shares	%	No of Shares	%
1.	Bank of Ceylon No. 1 Account	16,371,076	9.94	16,371,076	9.97
2.	Employees’ Provident Fund	16,010,248	9.72	15,810,248	9.63
3.	Sri Lanka Insurance Corporation Ltd. - General Fund	9,388,488	5.70	9,388,488	5.72
4.	Dr S Yaddehige	8,669,000	5.26	8,669,000	5.28
5.	HSBC International Nominees Ltd. - Snfe - Ntasian Discovery Master Fund	8,432,154	5.12	4,686,400	2.85
6.	Sri Lanka Insurance Corporation Ltd. - Life Fund	7,805,426	4.74	7,805,426	4.75
7.	HSBC International Nominees Ltd. - BPSS LUX - Aberdeen Global Asia Pacific Equity Fund	5,715,450	3.47	5,715,450	3.48
8.	Employees’ Trust Fund Board	5,303,700	3.22	5,303,700	3.23
9.	HSBC International Nominees Ltd. - MSNY - BAY Pond Partners L.P.	4,501,200	2.73	4,501,200	2.74
10.	HSBC International Nominees Ltd. - BPSS LDN - Aberdeen Asia Pacific Fund	4,294,800	2.61	4,294,800	2.62
11.	Hatton National Bank PLC A/C No. 01	4,282,200	2.60	4,282,200	2.61
12.	NDB-ESOP	4,133,726	2.51	4,133,726	2.52
13.	Asian Alliance Insurance PLC - Account Number 03/Life Shareholders’ Fund	3,450,977	2.10	3,500,000	2.13
14.	BNY-CF Ruffer Investment Funds: CF Ruffer Pacific Fund	3,000,000	1.82	3,000,000	1.83
15.	Mr A K Pathirage	2,970,000	1.80	3,470,000	2.11
16.	Asian Alliance Insurance PLC - General Fund Account No. 01	2,540,977	1.54	2,741,700	1.67
17.	Asiri Hospital Holdings PLC	2,411,583	1.46	2,408,136	1.47
18.	Asian Alliance Insurance PLC - Life Fund	2,159,746	1.31	910,000	0.55
19.	HSBC International Nominees Ltd. - MSNY - BAY Pond Investors (Bermuda) LP	2,045,200	1.24	2,045,200	1.25
20.	United Motors Lanka PLC	2,000,000	1.21	–	0.00
	Total	115,485,951	70.12	109,036,750	66.40
	Percentage of Shares held by the Public	75.62%		96.12%

6. Information on Share Trading

(i) Share Valuation

The market value of the National Development Bank PLC ordinary shares on 31 December 2013 was
LKR 160.50 per share. The highest and lowest values recorded during this 12 month period were LKR 182.50 on 10 May 2013 and LKR 138.00 on 18 September 2013.

Movement of the Bank’s share price compared with the two main indices and the sector index

(ii) Share Price Movement Trend over the Past 5 Years

Year	2013	2012	2011	2010	2009
Highest Price (LKR)	182.50	155.00	186.00	410.00	208.00
Lowest Price (LKR)	138.00	96.00	120.00	202.00	88.00
Price as at 31 December (LKR)	160.50	137.90	138.10	349.50	206.00
Total number of shares in issue	164,693,034	164,201,902	164,201,902	82,100,951	81,855,385

(iii) Information on Share Trading

Year	2013	2012	2011	2010	2009
(a) Number of transactions	11,406	9,854	7,906	11,862	13,935
(b) Number of shares traded	31,631,020	21,406,492	20,108,047	32,390,146	50,902,803
(c) Value of shares traded (LKR mn)	5,112,129,480.70	2,675,791,205.50	3,736,603,225.90	8,514,002,130.85	6,773,902,259

(iv) Information on Market Capitalization and Shareholders’ Funds

Year	2013 LKR mn	2012 LKR mn	2011 LKR mn	2010 LKR mn	2009 LKR mn
A - Shareholders’ Funds - NDB	19,656	14,942	12,675	11,724	11,095
B - NDB Market Capitalization	26,433	22,643	22,676	28,694	16,862
C - CSE Market Capitalization	2,422,985	2,167,581	2,213,873	2,210,452	1,092,138
D - NDB Market Capitalization as a % of CSE Market Capitalization	1.09	1.04	1.02	1.30	1.54

(v) Information on Dividends and Net Asset Value

Year	2013	2012	2011	2010	2009
Dividend Per Share (LKR)	10.00	15.00	7.50	8.50	8.00
Dividend Payout Ratio (%)	62.00	79.00	49.00	33.00	31.00
Net Assets Value (LKR)	148.85	151.54	103.07	93.15	86.72

(vi) Directors’ Interest in Shares of the Bank

Directors’ Interest in Shares of NDB as at 31 December 2013			Directors’ Interest in Shares of NDB as at 31 December 2012
Name	No. of Shares		Name	No. of Shares
Sunil G Wijesinha	880		Hemaka Amarasuriya	18,150
Ashok Pathirage	3,993,000*		Ashok Pathirage	3,470,000
Rajendra Theagarajah	126		Russell de Mel	7,116
Trevine Jayasekara	–		Trevine Jayasekara	–
Kimarli Fernando	–		Kimarli Fernando	–
Anura Siriwardena	–		Anura Siriwardena	–
Sarath Wikramanayake	–		Sarath Wikramanayake	–
Chandra Ekanayake	–		Chandra Ekanayake	–
Sujeewa Rajapakse	–		Sujeewa Rajapakse	–
Indrani Sugathadasa	–

* Includes shares held in slash account.

7. Debenture Information

(i) In December 2013, the Bank issued by way of a public offer one hundred million (100,000,000) rated, unsecured, subordinated, redeemable debentures of the par value of rupees one hundred (LKR 100/-) each aggregating to the value of rupees ten thousand million (LKR 10,000,000,000/-). The proceeds of these debentures were utilized to support the Bank’s Tier II Capital. The details of the said debentures are as follows:

In 2011, the Bank privately placed rated subordinated unsecured unlisted redeemable debentures having an aggregate face value of LKR 400,000,000. The proceeds of these debentures were utilized for re-lending purposes. The details of the said debentures are as follows:

(ii) Information On Debentures - Bank

				Market Value			Interest Rate
Type of Debenture	CSE Listing	Interest Payable Frequency	Balance as at 31 December 2013 LKR mn	Highest LKR mn	Lowest LKR	Year end LKR	Coupon Rate %	Effective Annual Yield %	Interest Rate of Comparable Security %
Fixed Rate - Rated Unsecured Subordinated Redeemable Debentures
A - Dec. 2013/Dec. 2018	Listed	Semi Annually	1,243	Not traded during the period			13.00	13.42	9.78
B - Dec. 2013/Dec. 2018	Listed	Annually	1,529	Not traded during the period			13.40	13.40	9.78
C - Dec. 2013/Dec. 2023	Listed	Annually	3,638	Not traded during the period			13.90	13.90	11.00
D - Dec. 2013/Dec. 2025	Listed	Annually	3,590	Not traded during the period			14.00	14.00	11.39
Floating Rate - Unsecured Redeemable Debentures
2011 - 2016 (3 month TB rate (gross)+1% p.a.)	Unlisted	Quarterly	400	–	–	–	11.43	11.93	7.78
Total Debentures			10,400

* Three months Treasury Bill rate before deducting 10% withholding tax as published by the Central Bank of Sri Lanka has been used.

(iii) Information on Debentures of the Bank (As per Rule No. 7.6 X (1) of the Listing Rules of the Colombo Stock Exchange:

	2013	2012
Debt Equity Ratio (%)	8.99	9.54
Interest Cover (Times)	1.49	1.49
Liquid Assets Ratio (%) - Domestic Banking Unit	26.22	22.02
Liquid Assets Ratio (%) - Foreign Currency Banking Unit	26.06	24.92

Credit Rating of Debentures

The subordinated Debentures are rated as A+ by Fitch Ratings Lanka Ltd.

Directors’ Interest in Debentures as at 31 December 2013

Name	No. of Debentures
Sunil G Wijesinha	10,000
Ashok Pathirage	–
Rajendra Theagarajah	–
Trevine Jayasekara	–
Kimarli Fernando	–
Anura Siriwardena	–
Sarath Wikramanayake	–
Chandra Ekanayake	–
Sujeewa Rajapakse	–
Indrani Sugathadasa	–

8. Financial Statements in USD

Income Statement

	BANK			GROUP
For the year ended 31 December	2013 USD ’000	2012 USD ’000	% Change	2013 USD ’000	2012 USD ’000	% Change
Interest income	159,249	134,385	19	160,503	135,701	18
Interest expenses	106,597	90,099	18	106,309	89,658	19
Net interest income	52,652	44,286	19	54,194	46,043	18
Fee and commission income	12,476	9,578	30	16,801	11,980	40
Net trading gains/(losses)	9,829	7,994	23	14,440	10,069	43
Other operating income	47,666	7,893	504	3,829	50,111	(92)
Total operating income	122,623	69,751	76	89,264	118,203	(24)
Impairment Charges/(Reversal) for Loans and Other Losses	9,570	840	1,040	9,745	407	2,297
Net operating income	113,053	68,911	64	79,519	117,796	(32)
Less: Operating expenses
Personnel expenses	18,466	17,192	7	20,562	18,463	11
Other expenses	19,748	15,267	29	22,442	17,119	31
Total operating expenses	38,214	32,459	18	43,004	35,582	21
Operating profit before Value Added Tax (VAT)	74,839	36,452	105	36,515	82,214	(56)
Value Added Tax (VAT) on financial services	(7,037)	(4,924)	43	(7,037)	(4,925)	43
Operating profit after Value Added TAX (VAT)	67,802	31,528	115	29,478	77,289	(62)
Share of associate companies’ profits/(losses)	–	–	–	380	3,471	(89)
Profit before taxation	67,802	31,528	115	29,858	80,760	(63)
Taxation	(8,106)	(8,393)	(3)	(8,895)	(10,092)	(12)
Profit for the year	59,696	23,135	158	20,963	70,668	(70)
Profit Attributable to:
Equity holders of the parent	59,696	23,135	158	20,420	70,050	(70)
Non-controlling interests	–	–	–	543	618	(10)
	59,696	23,135	158	20,963	70,668	(70)

Statement of Comprehensive Income

	BANK			GROUP
For the year ended 31 December	2013 USD ’000	2012 USD ’000	% Change	2013 USD ’000	2012 USD ’000	% Change
Profit for the year	59,696	23,135	158	20,963	70,668	(70)
Exchange gain from valuation of a foreign operation	–	–	–	(86)	167	(151)
Gains and losses on available-for-sale investments	1,145	–	100	1,617	–	100
Provisions made for terminal benefits	(274)	–	(100)	(274)	–	(100)
Total other comprehensive income/(expenses)	871	–	100	1,257	167	652
Less: Tax expenses relating to components of other comprehensive income	(295)	–	(100)	(427)	–	(100)
Other comprehensive income for the year, net of taxes	576	–	100	830	167	397
Total comprehensive income for the year	60,270	23,135	160	21,793	70,835	(69)
Attributable to:
Equity holders of the parent	60,270	23,135	160	21,259	70,194	(69)
Non-controlling interests	–	–	–	534	641	(17)
	60,270	23,135	160	21,793	70,835	(69)

Statement of Financial Position

	BANK			GROUP
As at 31 December	2013 USD ’000	2012 USD ’000	% Change	2013 USD ’000	2012 USD ’000	% Change
Assets
Cash and cash equivalents	19,970	27,297	(27)	20,407	28,510	(28)
Balances with Central Bank	40,834	47,645	(14)	40,834	47,645	(14)
Placements with banks	1,000	27,917	(96)	1,000	27,917	(96)
Derivative financial instruments	8,792	13,383	(34)	8,792	13,383	(34)
Other financial assets held-for-trading	81,994	7,710	964	108,559	89,370	21
Loans and receivables to banks	4,907	9,281	(47)	4,907	9,281	(47)
Loans and receivables to other customers	1,046,436	909,744	15	1,046,896	910,110	15
Financial investments - Loans and receivables	121,128	50,557	140	128,426	55,599	131
Financial investments - Available-for-sale	45,755	523	8,644	47,170	1,361	3,366
Financial investments - Held-to-maturity	134,625	151,037	(11)	141,190	150,770	(6)
Investments in subsidiary companies	15,584	20,715	(25)	–	–	0
Investments in associate companies	474	145	226	587	261	125
Investment property	–	–	0	10,583	10,162	4
Intangible assets	1,992	2,136	(7)	2,269	2,500	(9)
Property, plant & equipment	6,676	6,715	(1)	8,998	9,588	(6)
Other assets	9,097	7,345	24	11,157	9,056	23
Total assets	1,539,264	1,282,150	20	1,581,775	1,365,513	16

	BANK			GROUP
As at 31 December	2013 USD ’000	2012 USD ’000	% Change	2013 USD ’000	2012 USD ’000	% Change
Liabilities
Due to banks	79,947	18,196	339	79,947	18,196	339
Derivative financial instruments	6,251	13,622	(54)	6,251	13,622	(54)
Due to other customers	992,964	843,926	18	989,842	842,305	18
Debt securities issued and other borrowed funds	186,775	238,101	(22)	186,545	237,787	(22)
Tax liabilities	2,035	5,147	(60)	2,296	4,971	(54)
Deferred tax	2,390	626	281	2,481	621	300
Provision	1,300	958	36	1,643	1,018	61
Other liabilities	28,189	26,695	6	29,448	27,667	6
Subordinated term debts	89,351	17,684	405	89,351	17,684	405
Total liabilities	1,389,202	1,164,955	19	1,387,804	1,163,871	19
Equity
Stated capital	8,971	8,573	5	7,218	6,776	7
Statutory reserve fund	7,331	6,892	6	7,331	6,892	6
Investment fund account	13,054	7,250	80	13,054	7,250	80
Available-for-sale reserve	816	–	100	1,152	–	100
Share-based payment reserve	171	–	100	171	–	100
Retained earnings	119,719	94,480	27	158,561	174,242	(9)
Total equity to equity owners of the Bank	150,062	117,195	28	187,487	195,160	(4)
Non-controlling interest	–	–		6,484	6,482	0
Total equity	150,062	117,195	27	193,971	201,644	(4)
Total liabilities and equity	1,539,264	1,282,150	20	1,581,775	1,365,513	16
Commitments and contingencies	1,355,261	1,245,026	9	1,355,260	1,245,026	9

USD Accounts

The Income Statement and the Statement of Financial Position given in US Dollars are solely for the shareholders, investors and any other users of Financial Statements and do not form part of the Financial Statements.

9. Interim Financial Performance

BANK	Quarter 4	Quarter 3	Quarter 2	Quarter 1		Quarter 4	Quarter 3	Quarter 2	Quarter 1
LKR ’000	12.31.2013	09.30.2013	06.30.2013	03.31.2103		12.31.2012	09.30.2012	06.30.2012	03.31.2102
Net interest income	1,706,507	1,811,528	1,793,005	1,575,021		1,564,848	1,471,721	1,307,570	1,296,518
Other operating income	936,967	779,357	747,425	6,517,490		466,518	542,070	1,048,037	1,069,433
Total operating income	2,643,474	2,590,885	2,540,430	8,092,511		2,031,366	2,013,791	2,355,607	2,365,951
Impairment charges for loans and other losses	1,012,095	77,201	98,735	50,171		(36,678)	11,717	386,517	(303,944)
Net operating income	1,631,379	2,513,684	2,441,695	8,042,340		2,068,044	2,002,074	1,969,090	2,669,895
Total operating expenses	1,330,606	1,281,566	1,177,257	1,154,773		1,048,292	1,078,168	1,004,882	970,851
Profit from operations	300,773	1,232,118	1,264,438	6,887,567		1,019,752	923,906	964,208	1,699,044
Share of associate companies' profit	–	–	–	–		–	–	–	–
Profit before taxation	300,773	1,232,118	1,264,438	6,887,567		1,019,752	923,906	964,208	1,699,044
Taxation	(131,775)	(538,805)	(672,704)	(618,376)		(346,300)	(375,085)	(501,334)	(460,233)
Profit for the period	168,998	693,313	591,734	6,269,191		673,452	548,820	462,873	1,238,811
Profit Attributable to:
Equity holders of the parent	168,998	693,313	591,734	6,269,191		673,452	548,820	462,873	1,238,811
Non-controlling interests	–	–	–	–		–	–	–	–
	168,998	693,313	591,734	6,269,191		673,452	548,820	462,873	1,238,811
Basic Earnings per share (in LKR)	1.03	4.21	3.60	38.18		4.10	3.34	2.82	1.84

GROUP	Quarter 4	Quarter 3	Quarter 2	Quarter 1		Quarter 4	Quarter 3	Quarter 2	Quarter 1
LKR ’000	12.31.2013	09.30.2013	06.30.2013	03.31.2103		12.31.2012	09.30.2012	06.30.2012	03.31.2102
Net interest income	1,782,684	1,858,010	1,836,605	1,608,231		1,684,580	1,512,293	1,364,751	1,377,890
Other operating income	1,443,552	1,067,697	1,089,447	865,197		6,403,546	722,337	925,056	887,459
Total operating income	3,226,236	2,925,707	2,926,052	2,473,428		8,088,126	2,234,630	2,289,807	2,265,349
Impairment charges for loans and other losses	1,055,348	83,201	98,735	23,480		(103,447)	11,717	386,517	(303,944)
Net operating income	2,170,888	2,842,506	2,827,317	2,449,948		8,191,573	2,222,913	1,903,290	2,569,293
Total operating expenses	1,524,781	1,408,122	1,309,853	1,322,364		1,132,508	1,179,383	1,112,133	1,072,174
Profit from operations	646,107	1,434,384	1,517,464	1,127,584		7,059,065	1,043,530	791,157	1,497,119
Share of associate companies' profit	9,562	28,980	8,210	2,468		266,196	60,314	62,414	49,796
Profit before taxation	655,669	1,463,364	1,525,674	1,130,052		7,325,261	1,103,844	853,571	1,546,915
Taxation	(155,537)	(558,259)	(718,646)	(630,088)		(371,859)	(420,330)	(572,141)	(533,324)
Profit for the period	500,132	905,105	807,028	499,964		6,953,403	683,514	281,430	1,013,591
Profit Attributable to:
Equity holders of the parent	445,324	891,961	797,753	506,888		6,916,429	667,918	267,022	1,002,454
Non-controlling interests	54,808	13,144	9,275	(6,924)		36,976	15,596	14,408	11,138
	500,132	905,105	807,028	499,964		6,953,403	683,514	281,430	1,013,592
Basic Earnings per share (in LKR)	2.70	5.42	4.86	3.09		41.72	4.07	1.63	4.47

 

BANK	As at	As at	As at	As at		As at	As at	As at	As at
LKR ’000	31.12.2013	30.09.2013	30.06.2013	31.03.2013		31.12.2012	30.09.2012	30.06.2012	31.03.2012
Cash and cash equivalents	8,080,826	8,746,703	15,224,455	16,863,330		13,114,541	12,224,021	14,460,187	9,710,502
Net loans and advances	137,463,159	123,465,534	121,925,593	116,894,891		117,175,703	111,433,236	107,399,030	103,693,923
Investments	52,242,397	48,417,566	38,884,857	36,198,102		29,412,686	32,984,636	27,692,527	27,303,268
Other assets	3,472,246	2,595,732	4,257,589	3,484,992		3,771,366	2,384,367	2,762,071	2,768,871
Total assets	201,258,628	183,225,533	180,292,494	173,441,315		163,474,296	159,026,260	152,313,815	143,476,564
Customer deposits	129,830,029	118,489,102	117,639,980	110,091,898		107,600,583	96,517,676	95,086,142	88,445,517
Borrowings	46,556,578	39,878,258	36,845,563	36,879,823		34,932,507	41,608,262	37,264,955	36,165,959
Other liabilities	5,251,544	4,682,791	6,404,693	7,721,035		5,998,805	6,476,447	6,098,518	5,772,447
Total equity	19,620,477	20,175,384	19,402,258	18,748,561		14,942,401	14,423,875	13,864,200	13,092,641
Total liabilities & equity	201,258,628	183,225,535	180,292,494	173,441,315		163,474,296	159,026,260	152,313,815	143,476,564
Net asset value	119.13	122.50	118.16	114.18		91.00	87.84	84.43	79.74

 

GROUP	As at	As at	As at	As at		As at	As at	As at	As at
LKR ’000	31.12.2013	30.09.2013	30.06.2013	31.03.2013		31.12.2012	30.09.2012	30.06.2012	31.03.2012
Cash and cash equivalents	8,138,013	8,794,081	15,285,968	17,108,941		13,269,129	12,399,540	14,583,264	10,247,438
Net loans and advances	137,523,341	123,505,308	121,964,938	116,955,138		117,222,378	112,052,416	108,197,047	104,686,025
Investments	55,690,627	51,558,903	41,765,435	38,884,247		37,913,589	34,827,342	29,268,216	28,116,188
Other assets	5,465,140	4,448,933	6,200,663	5,315,740		5,697,975	4,647,238	4,980,881	4,693,100
Total assets	206,817,121	188,307,225	185,217,004	178,264,066		174,103,071	163,926,536	157,029,408	147,742,751
Customer deposits	129,421,813	118,094,538	117,290,318	109,742,736		107,393,866	96,517,676	95,086,142	88,445,517
Borrowings	46,526,578	39,841,559	36,800,553	36,850,288		34,892,582	41,348,643	36,941,267	35,132,981
Other liabilities	5,507,076	4,819,685	6,560,392	7,940,684		6,107,171	6,647,013	6,277,948	6,021,007
Shareholders’ funds	24,513,808	24,757,448	23,785,039	22,926,435		24,883,041	18,491,046	17,816,427	17,240,261
Non-controlling interests	847,846	793,995	780,702	803,923		826,411	922,158	907,624	902,985
Total liabilities & equity	206,817,121	188,307,225	185,217,004	178,264,066		174,103,071	163,926,536	157,029,408	147,742,751
Net asset value	148.85	150.32	144.85	139.62		151.54	112.61	108.50	104.99

10. Ten Years at a Glance (Group Performance)

Income Statement

LKR mn	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013
Income
Net interest income	2,246	2,693	2,853	3,522	3,787	4,233	4,163	4,910	5,819	7,012
Other income	1,471	2,081	2,133	1,474	1,662	2,560	2,785	3,012	9,119	4,537
Total operating income	3,717	4,774	4,986	4,996	5,449	6,793	6,948	7,922	14,938	11,549
Charges/(reversals) impairment charges for loans and receivables and other losses	279	153	13	65	116	373	(172)	(88)	51	1,261
Net operating income	3,438	4,621	4,972	4,932	5,333	6,420	7,119	8,010	14,887	10,288
Less Operating Expenses
Personnel costs	916	1,132	830	949	1,151	1,300	1,567	2,118	2,333	2,660
Other operating costs	1,267	1,645	929	1,104	1,237	1,370	1,496	1,863	2,163	2,904
Total operating expenses	2,183	2,777	1,760	2,053	2,388	2,670	3,063	3,981	4,496	5,564
Operating Profit before Share of Associate
Co's profit before tax	1,255	1,844	3,214	2,878	2,945	3,750	4,057	4,029	10,391	4,724
Share of associate Co's profit	31	22	214	179	172	526	295	331	439	49
Profit before taxation	1,288	1,866	3,428	3,057	3,117	4,276	4,352	4,360	10,830	4,773
Taxation	(481)	(593)	(1,222)	(1,421)	(1,409)	(2,154)	(2,176)	(1,597)	(1,898)	(2,061)
Profit after taxation	805	1,273	2,207	1,636	1,708	2,122	2,176	2,763	8,932	2,712
Non-controlling interests	(102)	(237)	(176)	(115)	(103)	(37)	(73)	(235)	(78)	(70)
Profit attributable to equity holders of the parent	703	1,036	2,030	1,521	1,605	2,085	2,103	2,528	8,854	2,642

Statement of Financial Position

LKR mn	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013
Assets
Liquid assets	14,101	2,917	6,042	7,748	5,883	8,243	5,586	7,651	13,269	8,138
Investments	5,633	19,078	12,170	14,701	18,509	32,128	20,021	27,359	32,499	55,614
Loans and receivables	33,387	36,976	42,418	49,818	54,589	54,107	78,452	102,019	124,311	137,523
Investments in associate Companies	225	241	1,179	1,210	1,393	1,724	1,763	1,797	33	77
Property, plant and equipment	1,658	1,162	691	804	781	806	918	1,504	1,541	1,473
Investment property	–	1,041	1,200	1,200	1,200	1,200	1,200	1,296	1,296	1,384
Other assets	2,446	3,007	1,277	661	925	1,074	691	962	1,154	2,608
Goodwill	1,535	873	–	–	–	4	4	–	–	–
Total Assets	58,985	65,295	64,977	76,143	83,280	99,286	108,635	142,588	174,103	206,817
LIABILITIES
Borrowings	26,881	27,799	29,204	34,147	34,993	29,561	28,631	38,973	36,630	47,344
Deposits with customers	11,085	13,954	21,161	25,624	31,091	49,948	60,533	82,094	107,394	129,423
Non-life insurance reserves	486	859	–	–	–	–	–	–	–	–
Long-term insurance fund	7,985	9,238	–	–	–	–	–	–	–	–
Taxation	300	220	640	522	352	560	633	397	713	625
Other liabilities	2,778	2,855	2,091	2,750	3,614	4,334	2,826	3,286	3,657	4,062
Total Liabilities	49,515	54,925	53,096	63,043	70,050	84,403	92,623	124,750	148,394	181,454
SHAREHOLDERS’ FUNDS
Stated capital	629	760	1,033	1,033	1,033	1,033	864	864	864	944
Statutory reserves	546	546	819	819	819	819	879	879	879	959
Revaluation reserve	86	–	–	–	–	–	–	–
Share based payment reserve	–	–	–	–	–	–	–	–	–	22
Available-for-Sale reserve	–	–	–	–	–	–	–	–	–	151
Investment Fund Account	–	–	–	–	–	–	–	387	924	1,707
Retained earnings	7,115	7,850	8,715	9,833	10,811	12,345	13,552	14,795	22,216	20,732
Total equity to equity owners of the Bank	8,377	9,155	10,567	11,685	12,662	14,197	15,295	16,925	24,883	24,515
Non-controlling interest	1,093	1,215	1,314	1,415	568	687	717	913	826	848
Total equity	9,470	10,370	11,881	13,100	13,230	14,884	16,012	17,838	25,709	25,363
Total Liabilities and total equity	58,985	65,295	64,977	76,143	83,280	99,286	108,635	142,588	174,103	206,817
Share Information
Market price per share	160.00	215.00	201.00	170.00	86.00	206.00	174.50	138.10	138.10	161.50
Basic earnings per share	6.50	11.20	12.40	9.30	9.80	12.75	12.81	15.79	55.31	16.48
Interim dividends per share	–	–	–	–	–	–	4.00	3.50	5.00	5.00
Final dividends per share	5.75	6.00	4.00	6.00	6.75	8.00	4.50	4.00	10.00	5.00
Total dividends per share	5.75	6.00	4.00	6.00	6.75	8.00	8.50	7.50	15.00	10.00
Dividend cover (Times)	2.28	3.21	6.20	3.72	3.27	3.77	2.19	2.05	3.69	1.60
Price earnings ratio (Times)	12.23	9.56	8.10	9.14	4.39	8.09	13.61	8.97	2.56	9.74
Book value per share (LKR)	77.92	79.80	64.54	71.38	77.35	86.72	93.15	103.07	151.54	148.85

11. Shareholder Enquiries and Communications

Secretary to the Board

National Development Bank PLC

No. 40, Navam Mawatha, Colombo 2

Tel: 2448 448, Ext: 3080, Fax: 2341050

e-mail: shehani.ranasinghe@ndbbank.com or

investor.relations@ndbbank.com

12. Compliance Report in Terms of Section 7.6 - Contents of the Annual Report in Terms of the Listing Rules of the Colombo Stock Exchange

Tabulated below is how we complied by the Contents of Annual Report as specified in Section 7.6 of the Listing Rules issued by the Colombo Stock Exchange. The table provides the disclosure requirements of Section 7.6, the compliance level of the Bank and where you will find the respective disclosures with this Annual Report.

Rule No:	Disclosure requirement	Cross reference within the Report
7.6 (i)	Names of persons, who during the financial year, were directors of the Entity	Board of Directors
7.6 (ii)	Principal activities of the Entity and its subsidiaries during the year and any changes therein	Business Model, Notes to the Financial Statements
7.6 (iii)	The names and the number of shares held by the 20 largest holders of voting shares and the percentage of such shares held	Investor Information
7.6 (iv)	The Public Holding percentage	Investor Information
7.6 (v)	A statement of each director’s holding and Chief Executive Officer’s holding in shares of the Entity at the beginning and end of the financial year	Investor Information
7.6 (vi)	Information pertaining to material foreseeable risk factors of the Entity	Risk Management
7.6 (vii)	Details of material issues pertaining to employees and industrial relations of the Entity	Employee Capital and Social and Environmental Capital section under Management Discussion & Analysis
7.6 (viii)	Extents, locations, valuations and the number of buildings of the Entity’s land holdings and investment properties	Note 27 on Notes to the Financial Statements
7.6 (ix)	Number of shares representing the Entity’s stated capital	Note 36.1 on Notes to the Financial Statements
7.6 (x)	A distribution schedule of the number of holders in each class of equity securities, and the percentage of their total holdings	Investor Information
7.6 (xi)	Ratios and Market Price Information	Highlights of the year
	Equity: Dividend per share, Dividend payout, Net asset value per share, Market value per share (highest and lowest values recorded during the financial year and value as at the end of financial year)	Highlights of the year
	Debt: Interest rate of comparable government security, debt/equity ratio, quick assets ratio, market prices & yield during the year	Highlights of the year
	Any changes in the credit rating (for the entity or any other instruments issued by the entity), if applicable	Investor Information
7.6 (xii)	Significant changes in the Entity’s or its subsidiaries’ fixed assets and the market value of land, if the value differs substantially from the book value	Note 25 to 27 on Notes to the Financial Statements
7.6 (xiii)	Details of the funds raised either through a public issue, Rights Issue or private placement A statement as to the manner in which the proceeds of such issue has been utilized. If any shares or debentures have been issued, the number, class and consideration received and the reason for the issue; and Any material change in the use of funds raised through an issue of Securities.	Note 35 on Notes to the Financial Statements
7.6 (xiv)	Employee share option scheme details	Note 41 on Notes to the Financial Statements
	Employee share purchase schemes	Not applicable
7.6 (xv)	Disclosures pertaining to Corporate Governance practices in terms of Rules 7.10.3, 7.10.5 c. and 7.10.6 c. of Section 7 of the Rules.	The Bank is exempt from Section 7.10 of the CSE Listing Rules thus not applicable.
7.6 (xvi)	Related Party transactions exceeding 10% of the Equity or 5% of the total assets of the Entity as per Audited Financial Statements, whichever is lower	Note 50 on Notes to the Financial Statements