Financial Reports

Statement of Cash Flows

BANK GROUP
For the year ended 31 December Note 2022
LKR ’000 		2021
LKR ’000 		2022
LKR ’000 		2021
LKR ’000
Cash flows from operating activities
Interest receipts 53,603,227 29,236,733 53,608,427 29,237,450
Interest payments (34,013,778) (24,670,396) (33,952,168) (24,647,946)
Net commission receipts 3,683,160 2,755,472 3,683,160 2,755,472
Net trading income 28,469 159,859 28,469 159,859
Recoveries from loans previously written-off 162,518 66,380 162,518 66,380
Receipts from other operating activities 527,653 453,633 1,077,113 1,074,363
Payments on other operating activities (5,308,678) (3,049,870) (5,044,500) (3,049,870)
Cash payments to employees (4,660,084) (3,167,398) (5,080,846) (3,595,460)
Taxes on financial services (1,173,413) (1,295,997) (1,173,413) (1,295,997)
Operating cash flows before changes in
operating assets and liabilities		 12,849,074 488,416 13,308,760 704,251
(Increase)/decrease in operating assets:
Balances with Central Bank/deposits held for
regulatory or monetary control purposes 		1,569,108 (4,457,488) 1,569,108 (4,457,488)
Financial assets at amortised cost –
Loans to and receivables from other customers 		29,673,313 (63,909,924) 29,673,313 (63,909,924)
Others (6,847,527) 1,711,343 (6,880,994) 2,085,675
Increase/(decrease) in operating liabilities:
Financial liabilities at amortised cost – Due to depositors 10,101,883 10,583,256 9,626,584 10,217,972
Negotiable certificates of deposit (412,141) (148,495) (412,141) (148,495)
Others (991,234) (1,978,684) (1,058,272) (1,981,879)
Net cash flows from/(used in) operating activities before
income tax		 45,942,476 (57,711,576) 45,826,358 (57,489,888)
Surcharge tax paid 22.4 (1,232,490) – (1,309,892) –
Income tax paid 48 (1,531,378) (1,621,286) (1,630,622) (1,681,790)
Net cash flows from/(used in) operating activities 43,178,608 (59,332,862) 42,885,844 (59,171,678)
Cash flows from investing activities
Dividends received from investment in subsidiaries,
joint venture, and associate 		16 89,861 89,277 – –
Dividends received from other investments 695,331 685,279 695,331 685,272
Interest received 7,634,028 8,319,018 7,709,136 8,344,267
Government securities – net (30,362,319) 34,680,263 (30,362,319) 34,680,263
Proceeds from sale and redemption of securities 700,697 7,279,798 715,734 7,295,398
Purchase of financial investments (1,342,486) (6,888,634) (1,359,957) (6,888,634)
Purchase of property, equipment, intangibles and
investment property 		38 to 39 (1,050,400) (1,534,126) (1,114,992) (1,538,703)
Proceeds from sale of equipment, investment property and others 12,469 39,513 12,469 45,099
Net cash flows (used in)/from investing activities (23,622,819) 42,670,388 (23,704,598) 42,622,962
Cash flows from financing activities
Redemption of debentures - (956,860) - (956,860)
Issue of new shares under rights issue 51 3,620,001 - 3,620,001 -
Borrowing, medium and long-term 4,834,232 35,207,755 4,834,232 35,207,755
Other borrowings – net 12,771,705 (8,210,119) 12,771,705 (8,210,119)
Repayment of borrowing, medium and long-term (26,410,731) (15,540,186) (26,410,731) (15,540,186)
Dividends paid - (506) (85,800) (89,399)
Net Cash flows (used in)/from financing activities (5,184,793) 10,500,084 (5,270,593) 10,411,191
Net increase/(decrease) in cash and cash equivalents 14,370,996 (6,162,390) 13,910,653 (6,137,525)
Cash and cash equivalents at the beginning of year 16,976,261 23,138,651 17,458,475 23,160,931
Cash and cash equivalents at the end of year 31,347,257 16,976,261 31,369,128 17,023,406
Reconciliation of cash and cash equivalents with items reported in the statement of financial position
Cash and cash equivalents 22.4 16,122,565 10,688,255 16,126,635 10,690,873
Placements with banks 48 15,224,692 6,288,006 15,242,493 6,332,533
31,347,257 16,976,261 31,369,128 17,023,406

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 211 to 355 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 2022
LKR ’000 		2021
LKR ’000 		2022
LKR ’000 		2021
LKR ’000
Profit before income tax 2,439,473 4,326,464 3,112,212 4,858,676
Add/(deduct) items not using (providing) cash: 18,605,282 5,508,670 18,342,253 5,267,182
Depreciation
– Property plant and equipment and investment property 19 400,320 415,353 455,785 458,900
– Right-of-use assets 19 309,678 287,629 309,678 287,629
Amortisation –
Intangible assets 19 414,668 320,869 422,970 327,644
Accretion of interest on right of use assets 11.1.2 141,899 137,425 141,899 137,425
Unrealised loss/(gain) on Trading securities 13 239,223 (37,946) 239,223 (37,946)
Net loss from financial instruments at fair value
Contracts with commercial banks 14 (299,859) 217,548 (299,859) 217,548
Foreign exchange loss/(gain) 16,13 170,534 (340,140) 151,953 (341,501)
Impairment for loans and other losses 17 17,041,471 4,485,288 17,058,972 4,485,288
Share of profits of associate and joint venture – – (332,719) (296,662)
Provision for defined benefit plans 18 187,348 22,644 194,351 28,857
Deduct items reported under investing activities (10,592,564) (9,663,457) (10,502,704) (9,581,177)
Dividend income (1,209,113) (1,043,071) (1,119,252) (953,794)
Gains on sale of Government securities 15 (99,112) (1,325,748) (99,112) (1,325,748)
Gain on sale of equity securities 15 – (65,260) – (65,260)
Gain on sale of property, plant and equipment 16 (8,744) 13,807 (8,744) 1,696
Interest income from investments (9,275,595) (7,243,185) (9,275,596) (7,238,071)
Deduct changes in operating assets and liabilities: 2,396,883 316,739 2,356,999 159,570
Decrease/(increase ) in account receivables (4,885,553) 593,481 (5,028,509) 593,685
Increase/(decrease) in account payables 7,282,436 (276,742) 7,385,508 (434,115)
Operating cash flows before changes in operating assets and liabilities 12,849,074 488,416 13,308,760 704,251

The notes to the financial statements from pages 211 to 355 form part of these financial statements.