Financial Reports

Statement of Cash Flows

BANK GROUP
For the year ended 31 December 2020
LKR ’000
2019
LKR ’000
2020
LKR ’000
2019
LKR ’000
Cash flows from operating activities
Interest receipts 30,020,544 29,371,405 30,016,182 29,367,300
Interest payments (28,898,275) (29,442,467) (28,867,010) (29,410,377)
Net commission receipts 2,194,100 2,214,658 2,194,100 2,214,658
Net trading income 33,140 1,227,843 33,140 1,227,843
Recoveries from loans previously written-off 42,021 7,601 42,021 7,601
Receipts from other operating activities 3,220,616 1,989,230 3,942,850 2,587,700
Payments on other operating activities (3,235,643) (2,987,378) (3,539,577) (3,343,283)
Cash payments to employees (3,509,801) (3,688,837) (3,509,801) (3,688,837)
Taxes on financial services (1,028,489) (1,594,710) (1,028,489) (1,594,710)
Operating cash flows before changes in
operating assets and liabilities
(1,161,787) (2,902,655) (716,584) (2,632,105)
(Increase)/decrease in operating assets:
Balances with Central Bank/deposits held for
regulatory or monetary control purposes
3,764,794 3,175,265 3,764,794 3,175,265
Financial assets at amortised cost –
Loans to and receivables from other customers
(31,967,075) (23,535,476) (31,967,075) (23,535,476)
Others 910,313 60,113 833,751 71,913
Increase/(decrease) in operating liabilities:
Financial liabilities at amortised cost – Due to depositors 60,833,677 6,061,028 60,451,771 5,799,500
Negotiable certificate of deposits 1,576,253 289,308 1,576,253 289,308
Others (1,492,634) 2,807,301 (1,334,358) 3,103,016
Net cash flows from/(used in) operating activities
before income tax
32,463,541 (14,045,116) 32,608,552 (13,728,579)
Income tax paid (615,096) (1,691,938) (671,516) (1,747,401)
Net cash flows from/(used in) operating activities 31,848,445 (15,737,054) 31,937,036 (15,475,980)
Cash flows from investing activities
Dividends received from investment in subsidiaries,
joint venture, and associate
139,276 152,376 50,000 75,500
Dividends received from other investments 419,077 550,774 419,076 550,774
Interest received 8,094,360 7,502,423 8,134,721 7,530,566
Government Securities – net (16,828,764) (14,116,047) (16,828,764) (14,116,047)
Proceeds from sale and redemption of securities 5,580,763 1,803,369 5,601,163 1,828,466
Purchase of financial investments (3,040,582) (338,003) (3,040,582) (338,003)
Purchase of property, equipment,
intangibles and investment property
(1,761,511) (982,654) (1,761,967) (1,026,160)
Proceeds from sale of equipment and investment property 26,796 26,777
Net cash flows used in investing activities (7,397,381) (5,400,966) (7,426,353) (5,468,127)
Cash flows from financing activities
Issue of new shares under Rights Issue 2,814,557 2,814,557
Issue of debentures 9,523,000 10,000,000 9,523,000 10,000,000
Redemption of debentures (5,000,000) (5,315,450) (5,000,000) (5,315,450)
Borrowing, medium and long-term 16,212,712 8,769,273 16,212,712 8,769,273
Other borrowings – net (14,571,228) 13,314,573 (14,571,228) 13,314,573
Repayment of borrowing, medium and long-term (12,334,236) (7,365,360) (12,334,236) (7,365,360)
Dividends paid (757,900) (929,050) (839,800) (1,103,236)
Net cash flows (used in)/from financing activities (6,927,652) 21,288,543 (7,009,552) 21,114,357
Net increase in cash and cash equivalents 17,523,412 150,523 17,501,131 170,250
Cash and cash equivalents at the beginning of year 5,615,239 5,464,716 5,659,800 5,489,550
Cash and cash equivalents at the end of year 23,138,651 5,615,239 23,160,931 5,659,800
Reconciliation of cash and cash equivalents with items reported in the statement of financial position
Cash and cash equivalents (Note 26) 7,724,364 5,450,209 7,728,969 5,459,359
Placements with banks (Note 28) 15,414,287 165,030 15,431,962 200,441
23,138,651 5,615,239 23,160,931 5,659,800

The Statement of Cash Flows of the Bank includes the results of associate, joint venture, and subsidiary companies only to the extent of the cash flows between Bank and respective companies as required by Sri Lanka Accounting Standards.

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

Reconciliation of profit for the year to net cash flows used in operating activities

BANK GROUP
2020
LKR ’000
2019
LKR ’000
2020
LKR ’000
2019
LKR ’000
Profit before income tax 3,398,440 2,989,265 3,943,886 3,308,440
Add/(deduct) items not using (providing) cash: 4,846,088 5,686,027 4,525,559 5,579,216
Depreciation
– Property, plant and equipment, and investment property 383,461 341,764 428,726 392,948
– Right-of-use assets 292,457 282,313 292,757 284,113
Amortisation
Intangible assets 243,739 219,579 249,475 224,349
Unrealised (gains)/loss on trading securities (90,525) 890,630 (90,525) 890,630
Net loss from financial instruments at fair value
Contracts with commercial banks 543,169 2,578,178 543,169 2,578,178
Interest rate swap fair value changes 6,963 6,963
Foreign exchange gain (23,292) (474,203) (23,292) (474,203)
Impairment for loans and other losses 3,297,892 1,668,913 3,327,892 1,689,313
Share of profits of associate and joint venture (407,785) (191,281)
Provision for defined benefit plans 199,187 171,890 205,142 178,206
Deduct items reported under investing activities (8,394,133) (7,971,518) (8,269,847) (7,821,494)
Dividend income (883,303) (943,453) (744,026) (791,077)
Gain on sale of Government Securities (505,284) (110,850) (505,284) (110,850)
Gain on sale of equity securities (5,102) (99,040) (5,102) (99,040)
Gain on sale of property, plant and equipment (13,708) (33,494) (23,240) (33,494)
Interest income from investments (6,986,736) (6,784,681) (6,992,195) (6,787,033)
Deduct changes in operating assets and liabilities: 31,998,050 (16,440,828) 31,737,438 (16,542,142)
Increase in account receivables (2,397,978) (4,426,387) (2,303,116) (4,737,813)
(Decrease)/increase in account payables (278,513) 637,288 (465,860) 854,585
Increase/(decrease) in income tax payable 496,406 (1,691,938) 525,558 (1,747,401)
Increase in deferred tax 552,807 182,670 655,720 184,961
Increase in operating assets (27,291,968) (20,300,098) (27,368,530) (20,288,298)
Increase in operating liabilities 60,917,296 9,157,637 60,693,666 9,191,824
Net cash flows from/(used in) operating activities 31,848,445 (15,737,054) 31,937,036 (15,475,980)

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

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