| Item | Amount (LKR ’000) as at 31 December 2019 | |||||
| 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 | 5,450,209 | 5,462,138 | 5,462,138 | – | – | |
| Balances with Central Bank of Sri Lanka | 8,666,547 | 8,666,547 | 8,666,547 | – | – | |
| Placements with banks | 165,030 | 165,000 | 165,000 | – | – | |
| Derivative financial assets | 631,438 | – | – | – | – | Included under other asset in regulatory reporting |
| Financial Assets measured at fair value through profit or loss | 5,307,066 | 66,975,402 | 62,431,165 | 2,612,462 | 1,931,775 | The difference is due to the Government and equity securities held for trading which are classified as FVOCI in published Financial Statements |
| Financial assets at amortised cost – Loans to and receivable from banks | 8,403,175 | – | – | – | – | Stated under held to maturity in regulatory reporting |
| Financial assets at amortised cost – Loans to and receivables from other customers |
272,818,311 | 275,140,797 | 248,703,439 | – | 26,437,358 | The impairment allowance for loans and advances on a collective and individual basis in accordance with SLFRS 9 – “Financial Instrument”. The general and specific provisions are made in accordance with Central Bank of Sri Lanka. The difference between the balance under SLFRS and previous GAAP. |
| Financial assets at amortised cost – Debt and other instruments |
21,743,857 | 35,019,471 | 31,861,558 | – | 3,157,913 | The difference is due to the Government and equity securities held for investment purposes which are classified as FVOCI in published Financial Statements |
| Financial assets measured at fair value through other comprehensive income | 72,716,407 | – | – | – | – | Classified into held to maturity and held for trading regulatory reporting |
| Investments in subsidiaries | 187,435 | 977,705 | 125,669 | – | 852,036 | 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 | 3,230,843 | 3,230,844 | 3,230,844 | – | – | |
| Intangible assets and goodwill |
1,184,659 | 1,184,659 | – | – | 1,184,659 | |
| Deferred tax assets | 308,853 | – | – | – | – | |
| Other assets | 3,283,300 | 4,971,050 | 3,094,234 | 1,876,816 | ||
| Total assets | 404,897,280 | 401,803,492 | 363,750,473 | 2,612,462 | 35,440,557 | |
| Liabilities | ||||||
| Due to banks | 24,594,828 | – | – | – | – | Included under Other Borrowings in regulatory reporting |
| Derivative financial liabilities | 518,731 | – | – | – | – | Included under Other Liabilities in regulatory reporting |
| Financial liabilities at amortised cost – Due to depositors |
247,786,974 | 239,793,978 | – | – | 239,793,978 | Interest payable on borrowing and deposits added to the Other Liabilities in regulatory reporting |
| Financial liabilities at amortised cost – Due to other borrowers |
47,307,556 | 84,003,414 | – | – | 84,003,414 | Due to banks and Debt Securities Issued are included under this heading in regulatory reporting |
| Debt securities in issue | 14,148,198 | – | – | – | – | Included under Other Borrowings in regulatory reporting |
| Retirement benefit obligation | 561,104 | – | – | – | – | Included under Other Liabilities in regulatory reporting |
| Current tax liabilities | 581,269 | 1,247,916 | – | – | 1,247,916 | Taxes are computed based on different profits under each reporting method. |
| Deferred tax liabilities | – | 557,596 | – | – | 557,596 | Due to deferred tax adjustments on Government Securities classified as available-for-sale financial assets. |
| Other liabilities | 5,059,187 | 16,989,435 | – | – | 16,989,435 | Interest payable on Borrowing and deposits added to the Other Liabilities in regulatory reporting |
| Subordinated term debt | 16,859,914 | 16,000,000 | 12,034,562 | – | 3,965,438 | Regulatory reporting reports only the principal amount |
| Total liabilities | 357,417,761 | 358,592,339 | 12,034,562 | – | 346,557,777 | |
| Off-balance sheet liabilities | ||||||
| Guarantees | 11,119,967 | 11,119,967 | 9,623,989 | – | 1,495,978 | |
| Performance bonds | 5,122,213 | 5,122,213 | 4,923,733 | – | 198,480 | |
| Letters of credit and acceptances | 12,958,343 | 12,958,343 | 12,803,418 | – | 154,925 | |
| Other contingent items (Bills on collection and capital expenditure approved by the Board) | 5,355,755 | 5,355,754 | – | – | 5,355,754 | |
| Undrawn loan commitments | 78,944,548 | 78,944,548 | 78,944,548 | – | – | |
| Other commitments (FX commitments) |
17,089,574 | 17,089,575 | 74,353,936 | – | – | |
| Total Off-Balance Sheet Liabilities | 130,590,400 | 130,590,400 | 180,649,624 | – | 7,205,137 | |
| Shareholders’ equity | ||||||
| Equity Capital (Stated Capital)/Assigned Capital | 7,530,371 | 7,530,371 | – | – | – | |
| of which amount eligible for CET1 |
– | – | – | – | – | |
| of which amount eligible for AT1 |
– | – | – | – | – | |
| Retained earnings | 18,228,086 | 19,656,153 | – | – | – | Due to differences which arise in profits computed in previous GAAP and SLFRSs |
| Accumulated other comprehensive income | 5,704,644 | – | – | – | 5,704,644 | Accumulated other comprehensive income is only applicable in published Financial Statements |
| Other reserves | 16,016,418 | 16,024,629 | – | – | – | Due to differences which arise in profits computed in previous GAAP and SLFRSs |
| Total Shareholders’ Equity | 47,479,519 | 43,211,153 | – | – | 5,704,644 | |
Annual Report 2019
Supplementary Information
Main Features of Regulatory Capital Instruments
| Description of the capital instrument (Bank only) |
Stated capital | Subordinated Term-debt (2015) |
Subordinated Term-debt (2016 – Type A) |
Subordinated Term-debt (2016 – Type B) |
Subordinated Term-debt (2018 – Type A) |
Subordinated Term-debt (2018 – 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 | C2306 | C 2366 | C2367 | C2393 | C2394 |
| 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 | 10 June 2015 | 9 November 2016 | 9 November 2016 | 26 March 2018 | 26 March 2018 |
| Par value of instrument (LKR) | 100 | 100 | 100 | 100 | 100 | |
| Perpetual or dated | Perpetual | Dated | Dated | Dated | Dated | Dated |
| Original maturity date, if applicable |
N/A | 10 June 2020 | 9 November 2021 | 9 November 2023 | 29 March 2023 | 29 March 2025 |
| Amount recognised in regulatory capital (in LKR ’000 as at the reporting date) |
7,530,371 | 400,000 | 382,744 | 4,834,512 | 2,330,776 | 4,086,530 |
| 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 | 9.4 | 12.15 | 12.75 | 12.6 | 13 |
| Non-cumulative or cumulative | Non-cumulative | Non-cumulative | Non-cumulative | Non-cumulative | Non-cumulative | Non-cumulative |
| Convertible or non-convertible |
Non-convertible | Non-convertible | Non-convertible | Non-convertible | Convertible | Convertible |
| If convertible, conversion trigger (s) |
N/A | 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 |
| If convertible, fully or partially |
N/A | N/A | N/A | N/A | Fully | Fully |
| If convertible, mandatory or optional |
N/A | N/A | N/A | N/A | Mandatory | Mandatory |
| If convertible, conversion rate |
N/A | 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 |
N/A – Not applicable