Statement of Cash Flows
BANK | GROUP | ||||
For the year ended 31 December | Note | 2021 LKR ’000 |
2020 LKR ’000 |
2021 LKR ’000 |
2020 LKR ’000 |
Cash flows from operating activities | |||||
Interest receipts | 29,236,132 | 30,020,544 | 29,236,849 | 30,016,182 | |
Interest payments | (24,807,821) | (28,898,275) | (24,785,372) | (28,867,010) | |
Net commission receipts | 2,791,414 | 2,194,100 | 2,791,414 | 2,194,100 | |
Net trading income | 740,546 | 33,140 | 740,546 | 33,140 | |
Recoveries from loans previously written-off | 66,380 | 42,021 | 66,380 | 42,021 | |
Receipts from other operating activities | 1,965,634 | 3,220,616 | 2,586,364 | 3,942,850 | |
Payments on other operating activities | (2,972,426) | (3,235,643) | (2,974,520) | (3,539,577) | |
Cash payments to employees | (3,220,515) | (3,509,801) | (3,646,484) | (3,509,801) | |
Taxes on financial services | (1,295,997) | (1,028,489) | (1,295,997) | (1,028,489) | |
2,503,347 | (1,161,787) | 2,719,180 | (716,584) | ||
(Increase)/decrease in operating assets: | |||||
Balances with Central Bank/deposits held for regulatory or monetary control purposes | (4,457,488) | 3,764,794 | (4,457,488) | 3,764,794 | |
Financial assets at amortised cost – Loans to and receivables from other customers | (64,446,256) | (31,967,075) | (64,446,256) | (31,967,075) | |
Others | 915,872 | 910,313 | 1,290,203 | 833,751 | |
Increase/(decrease) in operating liabilities: | |||||
Financial liabilities at amortised cost – Due to depositors | 10,583,256 | 60,833,677 | 10,217,972 | 60,451,771 | |
Negotiable certificate of deposits | (148,495) | 1,576,253 | (148,495) | 1,576,253 | |
Others | (1,750,936) | (1,492,634) | (1,754,127) | (1,334,358) | |
(56,800,700) | 32,463,541 | (56,579,011) | 32,608,552 | ||
Income tax paid | 49 | (1,621,286) | (615,096) | (1,681,790) | (671,516) |
(58,421,986) | 31,848,445 | (58,260,801) | 31,937,036 | ||
Cash flows from investing activities | |||||
Dividends received from investment in subsidiaries, joint venture, and associate | 16 | 89,277 | 139,276 | – | 50,000 |
Dividends received from other investments | 685,279 | 419,077 | 685,272 | 419,076 | |
Interest received | 8,319,619 | 8,094,360 | 8,344,867 | 8,134,721 | |
Government Securities – net | 33,646,475 | (16,828,764) | 33,646,475 | (16,828,764) | |
Proceeds from sale and redemption of securities | 7,279,798 | 5,580,763 | 7,295,398 | 5,601,163 | |
Purchase of financial investments | (6,881,648) | (3,040,582) | (6,881,648) | (3,040,582) | |
Purchase of property, equipment, intangibles and investment property | 39 to 40 | (1,417,208) | (1,761,511) | (1,421,785) | (1,761,967) |
Proceeds from sale of equipment, investment property and others | 37,920 | – | 43,506 | – | |
41,759,512 | (7,397,381) | 41,712,085 | (7,426,353) | ||
Cash flows from financing activities | |||||
Issue of debentures | – | 9,523,000 | – | 9,523,000 | |
Redemption of debentures | (956,860) | (5,000,000) | (956,860) | (5,000,000) | |
Borrowing, medium and long-term | 36,582,813 | 16,212,712 | 36,582,813 | 16,212,712 | |
Other borrowings – net | (9,585,177) | (14,571,228) | (9,585,177) | (14,571,228) | |
Repayment of borrowing, medium and long-term | (15,540,186) | (12,334,236) | (15,540,186) | (12,334,236) | |
Dividends paid | (506) | (757,900) | (89,399) | (839,800) | |
10,500,084 | (6,927,652) | 10,411,191 | (7,009,552) | ||
Net (decrease)/increase in cash and cash equivalents | (6,162,390) | 17,523,412 | (6,137,525) | 17,501,131 | |
Cash and cash equivalents at the beginning of year | 23,138,651 | 5,615,239 | 23,160,931 | 5,659,800 | |
16,976,261 | 23,138,651 | 17,023,406 | 23,160,931 | ||
Reconciliation of cash and cash equivalents with items reported in the statement of financial position | |||||
Cash and cash equivalents | 26 | 10,688,255 | 7,724,364 | 10,690,873 | 7,728,969 |
Placements with banks | 28 | 6,288,006 | 15,414,287 | 6,332,533 | 15,431,962 |
16,976,261 | 23,138,651 | 17,023,406 | 23,160,931 |
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 from pages 179 to 309 form part of these financial statements.
Reconciliation of profit for the year to operating cash flows before changes in operating assets and liabilities
BANK | GROUP | ||||
Note | 2021 LKR ’000 |
2020 LKR ’000 |
2021 LKR ’000 |
2020 LKR ’000 |
|
Profit before income tax | 4,326,464 | 3,398,440 | 4,858,676 | 3,943,886 | |
Add/(deduct) items not using (providing) cash: | 5,856,107 | 4,846,088 | 5,614,618 | 4,525,559 | |
Depreciation | |||||
– Property, plant and equipment, and investment property | 19 | 415,353 | 383,461 | 458,900 | 428,726 |
– Right-of-use assets | 19 | 287,629 | 292,457 | 287,629 | 292,757 |
Amortisation – | |||||
Intangible assets | 19 | 320,869 | 243,739 | 327,644 | 249,475 |
Unrealised gains on trading securities | 13 | (197,804) | (90,525) | (197,804) | (90,525) |
Net loss from financial instruments at fair value | |||||
Contracts with commercial banks | 14 | 217,548 | 543,169 | 217,548 | 543,169 |
Foreign exchange loss/(gain) | 16 | 304,580 | (23,292) | 303,218 | (23,292) |
Impairment for loans and other losses | 17 | 4,485,288 | 3,297,892 | 4,485,288 | 3,327,892 |
Share of profits of associate and joint venture | – | – | (296,662) | (407,785) | |
Provision for defined benefit plans | 18 | 22,644 | 199,187 | 28,857 | 205,142 |
Deduct items reported under investing activities | (9,666,876) | (8,394,133) | (9,584,596) | (8,269,847) | |
Dividend income | (1,043,071) | (883,303) | (953,794) | (744,026) | |
Gain on sale of Government Securities | 15 | (1,325,748) | (505,284) | (1,325,748) | (505,284) |
Gain on sale of equity securities | 15 | (65,260) | (5,102) | (65,260) | (5,102) |
Gain on sale of property, plant and equipment | 16 | 10,388 | (13,708) | (1,723) | (23,240) |
Interest income from investments | (7,243,185) | (6,986,736) | (7,238,071) | (6,992,195) | |
Deduct changes in operating assets and liabilities: | 1,987,652 | (1,012,182) | 1,830,482 | (916,182) | |
Decrease/(increase) in account receivables | 1,491,565 | (733,669) | 853,850 | (450,322) | |
Increase/(decrease) in account payables | 496,087 | (278,513) | 976,632 | (465,860) | |
Operating cash flows before changes in operating assets and liabilities | 2,503,347 | (1,161,787) | 2,719,180 | (716,584) |
The notes to the financial statements from pages 179 to 309 form part of these financial statements.