Stewardship

Decade at a glance

Bank                      
Year Ended December 31, 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 CAGR
Rs. Mn. (%)

Operating Results

Income		 8,203 8,364 10,059 12,290 16,100 24,470 35,223 44,115 43,741 41,522 21.15
Interest income 6,510 6,613 7,931 9,584 13,034 19,532 30,503 37,188 35,925 34,740
Interest expenses (4,174) (3,747) (4,218) (4,878) (7,226) (11,955) (18,951) (24,336) (23,515) (18,328)
Foreign exchange profit 563 464 397 874 587 1,439 1,545 2,633 2,962 1,741
Commission & other income 732 1,097 1,731 1,832 2,479 3,499 3,175 4,294 4,854 5,041
Operating expenses & provisions (2,306) (2,902) (3,887) (4,908) (5,232) (8,301) (9,567) (12,259) (13,035) (13,876)
Profit before income tax 1,325 1,525 1,954 2,504 3,642 4,214 6,705 7,520 7,191 9,318 23.27
Income tax on profit (315) (321) (477) (819) (1,278) (2,201) (2,601) (3,252) (2,887) (3,794)
Net profit for the year 1,010 1,204 1,477 1,685 2,364 2,013 4,104 4,268 4,304 5,524 19.43
As at December 31,

ASSETS

Cash and short term funds		 4,272 1,835 9,002 12,136 18,663 13,739 16,208 24,115 24,057 10,557
Balances with Central Banks 3,091 3,244 5,233 6,320 9,045 12,574 11,576 10,322 11,795 12,189
Government Treasury Bills,
Bonds and other securities		 5,307 9,436 16,530 19,900 21,218 32,065 49,863 51,633 96,671 114,541
Commercial paper 1,170 1,080 546 560 408 423 – – – –
Securities purchased under
re-sale agreements		 1,064 832 6,184 399 808 4,593 3,804 3,400 5,203 68
Dealing securities – – – 110 182 145 207 58 81 283
Investments held for sale – – – – – 218 205 – – –
Investments held to maturity 462 905 2,006 2,340 3,091 1,394 1,756 1,197 1,025 2,366
Bills of Exchange 2,368 2,552 2,495 2,799 2,790 3,204 3,195 3,059 2,847 5,291
Lease receivable 1,519 1,921 3,364 5,317 7,088 9,482 10,945 9,484 7,794 11,019 19.92
Loans and advances 36,730 47,350 60,585 82,605 108,884 137,846 160,184 167,858 161,329 200,729
55,983 69,155 105,945 132,486 172,177 215,683 257,943 271,126 310,802 357,043
Investments in Associate Companies 78 78 78 109 107 44 44 44 44 44
Investments in Subsidiary Companies 424 424 429 429 434 434 434 434 279 354
Other assets 1,251 2,149 2,167 2,553 4,177 4,336 5,751 5,512 6,808 6,191
Property, Plant & Equipment and
Intangible Assets		 1,410 1,546 1,661 2,896 3,182 3,477 3,768 4,098 4,382 6,428
Total Assets 59,146 73,352 110,280 138,473 180,077 223,974 267,940 281,214 322,315 370,060 22.26

LIABILITIES

Deposits from customers		 46,306 54,585 75,185 98,730 127,601 157,496 183,110 199,881 234,745 259,779 21.35
Dividends payable 163 118 190 230 230 113 113 – – –
Borrowings 1,862 4,200 5,406 9,090 13,387 18,944 18,752 13,620 11,639 14,371
Securities sold under re-purchase agreements 228 1,938 10,580 9,050 11,389 14,330 23,342 25,075 29,905 45,774
Other liabilities 3,263 4,218 4,843 3,735 6,331 9,122 10,308 10,646 12,888 12,259
Tax payable 79 39 148 483 818 1,446 1,698 1,665 1,203 2,448
Debentures 500 500 2,244 3,244 4,553 6,680 6,680 4,436 3,436 2,127
52,401 65,598 98,596 124,562 164,309 208,131 244,003 255,323 293,816 336,758

SHAREHOLDERS’ FUNDS

Share capital/Stated capital		 1,324 1,324 2,603 2,603 3,327 2,428 10,515 10,548 10,608 10,811
Statutory Reserve Fund 1,009 1,009 1,009 1,009 1,421 1,429 1,634 1,896 2,164 2,472
Reserves 4,412 5,421 8,072 10,299 11,020 11,986 11,788 13,447 15,727 20,019
Total Liabilities & Shareholders’ Funds 59,146 73,352 110,280 138,473 180,077 223,974 267,940 281,214 322,315 370,060 22.26
Commitments and contingencies 19,749 24,082 38,158 43,942 47,154 56,418 116,212 115,809 146,072 195,646
CAGR - Compounded Annual Growth Rate
Bank 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 CAGR

RATIOS

Return on average
shareholders’ funds (%)		 17.13 16.61 15.20 13.16 15.93 12.73 20.63 17.13 15.83 17.87  
Income growth (%) 34.56 1.96 20.26 22.17 31.00 51.99 43.95 25.25 (0.85) (5.07)  
Return on average assets (%) 1.86 1.82 1.61 1.35 1.48 1.00 1.67 1.55 1.43 1.60  
Rate of dividend (%) 45.00 50.00 50.00 60.00 45.00 50.00 – – – –  
Dividend per share (Rs.) – – – – – – 7.00 7.00 7.00 7.00  
Ordinary share dividend cover (times) 5.20 5.20 3.70 3.48 3.34 2.54 2.29 2.42 2.46 2.09  
Gross dividends to
ordinary shareholders (Rs. Mn.)		 188.06 208.95 348.25 420.00 639.36 714.00 1,743.13 1,745.81 1,751.47 2,642.25  
Advances to deposits and refinance (%) 85.51 92.59 86.16 89.52 90.64 92.49 91.75 87.12 70.88 80.97  
Property,Plant & Equipment to
shareholders’ funds (%)		 20.90 19.93 14.22 20.81 20.75 21.33 15.74 15.83 15.38 19.30  
Total assets to shareholders’ funds (times) 8.77 9.46 9.44 9.95 11.42 14.14 11.19 10.86 11.31 11.11  
Capital funds to liabilities including
contingent liabilities (%)		 9.35 8.65 8.54 8.26 7.46 6.05 7.87 6.98 6.48 6.26  
Cost/Income Ratio (%) 55.27 55.46 55.87 56.78 54.28 61.10 47.87 50.46 56.86 54.69  
Liquid assets to liabilities (%) 27.72 27.88 23.95 23.17 24.51 22.64 24.24 24.83 38.80 29.74  
(As specified in the Banking
Act No. 30 of 1988)		                      
                       
Group Capital Adequacy (%) Tier I 15.72 14.94 13.43 10.78 9.68 7.62 10.60 10.55 11.92 10.86  
                                               Tier I & II 16.20 15.07 15.46 13.16 12.08 11.58 13.71 13.13 13.93 12.26  
                       

SHARE INFORMATION

Market value of a share (Rs.)		 127.00 200.00 144.00 159.75 135.50 190.00 147.00 67.00 189.50 259.90  
Earnings per share (Rs.) 4 4 4 5 7 6 11 11 11 15  
Price earnings ratio (times) 5 8 8 8 9 15 9 4 11 18  
Net assets value per share (Rs.) 21 25 31 38 44 47 61 69 76 88  
Earnings yield (%) 18 13 13 13 11 5 11 25 9 6  
Dividend payout ratio (%) 22 18 27 29 30 39 44 41 41 48  
                       

OTHER INFORMATION

Number of employees		 2,259 2,399 2,648 2,863 3,168 3,415 3,745 4,041 4,071 4,321  
Number of delivery points - Sri Lanka 100 109 116 125 134 150 163 170 172 187 } 9.68
Number of delivery points - Bangladesh – – 4 4 5 7 9 11 15 17
Number of Automated Teller Machines 109 143 166 188 223 278 301 346 368 414 18.02
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