Description of the Capital Instrument (Bank Only)	Stated Capital	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
Unique Identifier (e.g., ISIN or Bloomberg Identifier for Private Placement)	LK0055N00000	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	26 March 2018	26 March 2018	23 October 2020	23 October 2020
Par Value of Instrument (LKR)	10	100	100	100	100	100
Perpetual or Dated	Perpetual	Dated	Dated	Dated	Dated	Dated
Original Maturity Date, if Applicable	N/A	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)	8,600,457	2,417,256	1,165,388	3,269,224	3,454,400	205,000
Accounting Classification (Equity/Liability)	Equity	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
Subsequent Call Dates, if Applicable	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
Coupon Rate and any Related Index (%)	N/A	12.75	12.6	13	9	9.25
Non-Cumulative or Cumulative	Non-Cumulative	Non-Cumulative	Non-Cumulative	Non-Cumulative	Non-Cumulative	Non-Cumulative
Convertible or Non-Convertible	Non-convertible	Non-convertible	Convertible	Convertible	Convertible	Convertible
If Convertible, Conversion Trigger (s)	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	Fully	Fully	Fully	Fully
If Convertible, Mandatory or Optional	N/A	N/A	Mandatory	Mandatory	Mandatory	Mandatory
If Convertible, Conversion Rate	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

 

Differences between Accounting and Regulatory Scopes and Mapping of Financial Statement Categories with Regulatory Risk Categories – Bank Only

Item	Amount (LKR ’000) as at 31st December 2021
	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	10,688,255	10,688,255	10,688,255	–	–
Balances with Central Bank of Sri Lanka	9,359,241	9,359,241	9,359,241	–	–
Placements with Banks	6,288,006	6,288,006	6,288,006	–	–
Derivative financial assets	280,235	–	–	–	–	Included under other asset in regulatory reporting
Financial Assets measured at fair value through profit or loss	218,875	41,401,723	41,401,723	49,014	–	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	–	–	–	–	–
Financial assets at amortised cost – Loans to and receivables from other customers	365,900,540	370,186,182	335,814,251	–	–	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	26,674,962	36,803,368	27,962,008	–	–	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	54,329,436	–	–	–	–	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	217,436	1,007,705	1,007,705	–	–	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	3,237,124	3,258,390	3,258,390	–	–
Intangible assets and goodwill	2,227,577	2,227,577	–	–	2,227,577
Deferred tax assets	1,358,895	–	–	–	–
Other assets	3,924,505	3,415,085	2,561,588	–	853,497
Total assets	485,505,236	484,645,411	438,351,046	49,014	3,081,074
Liabilities
Due to Banks	3,349,836	–	–	–	–	Included under Other Borrowings in regulatory reporting
Derivative financial liabilities	814,219	–	–	–	–	Included under Other Liabilities in regulatory reporting
Financial liabilities at amortised cost – Due to depositors	319,861,013	312,914,566	–	–	312,914,566	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.
Due to other borrowers	69,589,129	88,110,189	–	–	88,110,189	Due to banks and Debt Securities Issued are included under other borrowing in regulatory reporting.
Debt securities in Issue	16,297,256	–	–	–	–	Included under Other Borrowings in regulatory reporting
Employee benefits	688,598	–	–	–	–	Included under Other Liabilities in regulatory reporting
Current tax liabilities	951,645	1,687,687	–	–	1,687,687	Taxes are computed based on accounting profits derived from each reporting method.
Deferred tax liability	–	115,523	–	–	115,523
Other liabilities	6,580,166	15,515,605	–	–	15,515,605	Interest payable on Borrowing and deposits added to the Other Liabilities in regulatory reporting
Subordinated term debt	18,387,276	17,566,140	–	–	7,054,872	Regulatory reporting reports only the principal amount and accrued interest is classified under other liabilities.
Total liabilities	436,519,138	435,909,710	–	–	425,398,442
Off-balance sheet liabilities
Guarantees	20,404,518	17,196,181	16,972,122	–	224,059
Performance bonds	7,888,729	6,848,137	6,833,678	–	14,459
Letters of credit and acceptances	21,246,261	21,117,664	19,945,322	–	1,172,342
Other contingent items (Bills on collection and capital expenditure approved by the Board	4,640,773	4,640,773	–	–	4,640,773
Undrawn loan commitments	68,069,669	68,069,669	68,069,669	–
Other commitments (FX commitments)	25,881,741	25,881,741	53,234,606	–
Total Off-Balance Sheet Liabilities	148,131,691	143,754,165	165,055,397	–	6,051,633
Shareholders' equity
Equity capital (Stated Capital/Assigned Capital)	8,600,457	8,600,457	–	–	–
of which amount eligible for CET1	–	–	–	–	–
of which amount eligible for AT1	–	–	–	–	–
Retained earnings	22,091,649	23,884,922	–	–	–	Due to differences which arise in regulatory reporting and SLFRS accounting standards.
Accumulated other comprehensive income	1,767,185	–	–	–	1,564,833	Accumulated other comprehensive income is only applicable in Published Financial Statements
Other reserves	16,526,807	16,250,322	–	–	–	Due to differences which arise in regulatory reporting and SLFRS accounting standards.
Total Shareholders' Equity	48,986,098	48,735,701	–	–	1,564,833

Notes:

Where a single item attracts capital charges according to more than one risk category, it should be reported in all columns that it attracts a capital charge. As a consequence, the sum of amounts in columns (c) to (e) may be greater than the amount in column (b). An explanation note must be provided for such reporting for reconciliation purpose.