Annual Report 2020
Supplementary Information
Main Features of Regulatory Capital Instruments – Bank/Group
| Description of the capital instrument (Bank only) |
Stated capital | Subordinated Term-debt (2016 – Type A) |
Subordinated Term-debt (2016 – Type B) |
Subordinated
Term-debt (2018 – Type A) |
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 | DFCC Bank PLC | DFCC Bank PLC | DFCC Bank PLC |
| Unique identifier (e.g. ISIN or Bloomberg identifier for private placement) | LK0055N00000 | C 2366 | C-2367 | C-2393 | C-2394 | C-2458 | C-2457 |
| Governing law(s) of the instrument | Companies Act, No. 07 of 2007, Colombo Stock Exchange Regulations | Securities and Exchange Commission Act No. 36 of 1987 (as amended), Colombo Stock Exchange Regulations | |||||
| Original date of issuance | May 1956 to May 2019 | 9 November 2016 | 9 November 2016 | 26 March 2018 | 26 March 2018 | 23 October 2020 | 23 October 2020 |
| Par value of instrument (LKR) | 100 | 100 | 100 | 100 | 100 | 100 | |
| Perpetual or dated | Perpetual | Dated | Dated | Dated | Dated | Dated | Dated |
| Original maturity date, if applicable |
N/A | 9 November 2021 | 9 November 2023 | 29 March 2023 | 29 March 2025 | 23 October 2025 | 23 October 2027 |
| Amount recognised in regulatory capital (in LKR ’000 as at the reporting date) |
7,682,465 | 191,372 | 3,625,884 | 1,748,082 | 4,086,530 | 4,318,000 | 205,000 |
| Accounting classification (equity/liability) | Equity | Liability | 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 | N/A |
| Subsequent call dates, if applicable |
N/A | 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 | Fixed coupon |
| Coupon rate and any related index (%) |
N/A | 12.15 | 12.75 | 12.6 | 13 | 9 | 9.25 |
| Non-cumulative or cumulative |
Non-cumulative | Non-cumulative | Non-cumulative | Non-cumulative | Non-cumulative | Non-cumulative | Non-cumulative |
| Convertible or non-convertible |
Non-convertible | Non-convertible | Non-convertible | Convertible | Convertible | Convertible | Convertible |
| If convertible, conversion trigger (s) |
N/A | N/A | 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 |
| If convertible, fully or partially |
N/A | N/A | N/A | Fully | Fully | Fully | Fully |
| If convertible, mandatory or optional |
N/A | N/A | N/A | Mandatory | Mandatory | Mandatory | Mandatory |
| If convertible, conversion rate |
N/A | N/A | N/A | Based on the simple average of the daily Volume Weighted Average Price (VWAP) of an ordinary voting shares | Based on the simple average of the daily Volume Weighted Average Price (VWAP) of an ordinary voting shares | Based on the simple average of the daily Volume Weighted Average Price (VWAP) of an ordinary voting shares | Based on the simple average of the daily Volume Weighted Average Price (VWAP) of an ordinary voting shares |
N/A – Not applicable
| Item | Amount (LKR ’000) as at 31 December 2020 | |||||
| Carrying Values as Reported in Published Financial Statements |
Carrying Values under Scope of Regulatory Reporting |
Subject to Credit Risk Framework |
Subject to Market Risk Framework |
Not subject to Capital Requirements or Subject to Deduction from Capital |
Explanation for Differences between Accounting and Regulatory Reporting | |
| Assets | ||||||
| Cash and cash equivalents | 7,724,364 | 7,724,364 | 7,724,364 | – | – | |
| Balances with Central Bank of Sri Lanka | 4,901,753 | 4,901,753 | 4,901,753 | – | – | |
| Placements with banks | 15,414,287 | 15,414,287 | 15,414,287 | – | – | |
| Derivative financial assets | 835,464 | – | – | – | – | Included under other asset in regulatory reporting |
| Financial Assets measured at fair value through profit or loss | 609,717 | 74,752,722 | 74,752,722 | 11,069 | – | Classified into Held to Maturity and Held for Trading in the regulatory reporting based on the purpose and the intent of the investments. Accrued interest is classified under other assets. |
| Financial assets at amortised cost – Loans to and receivable from banks | 4,152,717 | 4,152,717 | 4,152,717 | – | – | |
| Financial assets at amortised cost – Loans to and receivables from other customers |
301,909,337 | 304,954,868 | 277,291,099 | – | – | As per the Banking Act Direction No. 03 of 2008 Classification of Loans and Advances, Income Recognition and Provisioning. The CBSL time based provisions were netted off in arriving loans and advances to customers in the regulatory reporting while in the published financial impairment allowance based on expected credit loss was netted off. |
| Financial assets at amortised cost – Debt and other instruments |
31,604,175 | 41,219,700 | 32,648,414 | – | – | Classified into Held to Maturity and Held for Trading in the regulatory reporting based on the purpose and the intent of the investments. Accrued interest is classified under other assets. |
| Financial assets measured at fair value through other comprehensive income | 88,718,002 | – | – | – | – | Classified into Held to Maturity and Held for Trading in the regulatory reporting based on the purpose and the intent of the investments. Accrued interest is classified under other assets. |
| Investments in subsidiaries | 217,435 | 1,007,705 | 910,670 | – | 97,035 | Investments in associates and joint ventures are included in regulatory reporting in addition to those in subsidiaries |
| Investments in associates | 35,270 | – | – | – | – | Included in investments in Subsidiaries |
| Investments in joint ventures | 755,000 | – | – | – | – | Included in Investments in Subsidiaries |
| Investment property | 9,879 | 9,879 | 9,879 | – | – | |
| Property, plant and equipment | 3,406,600 | 3,408,897 | 3,408,897 | – | – | |
| Intangible assets and goodwill |
1,713,052 | 1,713,052 | – | – | 1,713,052 | |
| Other assets | 3,070,235 | 5,688,710 | 3,535,346 | 2,153,363 | ||
| Total assets | 465,077,287 | 464,948,654 | 424,750,148 | 11,069 | 3,963,450 | |
| Liabilities | ||||||
| Due to banks | 14,909,937 | – | – | – | – | Included under other borrowings in regulatory reporting |
| Derivative financial liabilities | 267,883 | – | – | – | – | Included under other liabilities in regulatory reporting |
| Financial liabilities at amortised cost – Due to depositors |
310,026,892 | 302,180,886 | – | – | 302,180,886 | Due to depositors are at Effective Interest Rate (EIR) method in published financial statements and interest payable on deposits are classified under other liabilities in the regulatory reporting |
| Financial liabilities at amortised cost – Due to other borrowers |
46,847,076 | 76,128,700 | – | – | 76,128,700 | Due to banks and debt securities issued are included under other borrowing in regulatory reporting |
| Debt securities in issue | 16,291,279 | – | – | – | – | Included under other borrowings in regulatory reporting |
| Retirement benefit obligation | 643,118 | – | – | – | Included under other liabilities in regulatory reporting | |
| Current tax liabilities | 1,012,645 | 1,553,824 | – | – | 1,553,824 | Taxes are computed based on accounting profits derived from each reporting method |
| Deferred tax liabilities | 243,949 | 378,234 | – | – | 378,234 | |
| Other liabilities | 6,119,854 | 17,600,916 | – | – | 17,600,916 | Interest payable on borrowing and deposits added to the other liabilities in regulatory reporting |
| Subordinated term debt | 19,357,497 | 18,523,000 | – | – | 4,348,132 | Regulatory reporting reports only the principal amount and accrued interest is classified under other liabilities |
| Total liabilities | 415,720,130 | 416,365,560 | – | – | 402,190,692 | |
| Off-balance sheet liabilities | ||||||
| Guarantees | 11,801,465 | 11,004,915 | 9,217,050 | – | 1,787,865 | |
| Performance bonds | 4,487,667 | 4,487,667 | 4,361,518 | – | 126,149 | |
| Letters of credit and acceptances | 21,003,494 | 21,340,301 | 21,152,966 | – | 187,335 | |
| Other contingent items (Bills on collection and capital expenditure approved by the Board) | 4,964,010 | 4,950,995 | – | – | 4,950,995 | |
| Undrawn loan commitments | 87,320,270 | 87,320,270 | 87,320,270 | – | – | |
| Other commitments (FX commitments) |
1,187,241 | 323,405 | 54,814,705 | – | – | |
| Total Off-Balance Sheet Liabilities | 130,764,147 | 129,427,553 | 176,866,509 | – | 7,052,344 | |
| Shareholders’ equity | ||||||
| Equity Capital (Stated Capital)/Assigned Capital | 7,682,465 | 7,682,465 | – | – | – | |
| of which amount eligible for CET1 |
||||||
| of which amount eligible for AT1 |
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| Retained earnings | 19,652,169 | 24,769,727 | – | – | – | Due to differences which arise in regulatory reporting and SLFRS accounting standards. |
| Accumulated other comprehensive income | 5,882,811 | – | – | – | 4,158,106 | Accumulated other comprehensive income is only applicable in Published Financial Statements |
| Other reserves | 16,139,712 | 16,130,902 | – | – | – | Due to differences which arise in regulatory reporting and SLFRS accounting standards. |
| Total Shareholders’ Equity | 49,357,157 | 48,583,094 | – | – | 4,158,106 | |