Quantitative Disclosures as per Schedule III of Banking act Direction No. 01 of 2016, Capital Requirements under Basel III

Basel III Computation of Liquidity Coverage Ratio – All Currencies

	Amount (LKR ’000)
	31 December 2022		31 December 2021
Item	Total un-weighted value	Total weighted value	Total un-weighted value	Total weighted value
Total stock of High-Quality Liquid Assets (HQLA)	102,328,524	101,602,039	70,028,983	69,396,761
Total adjusted level 1A assets	99,703,368	99,703,368	68,764,540	68,764,540
Level 1 assets	99,703,368	99,703,368	68,764,540	68,764,540
Total adjusted level 2A assets	1,674,550	1,423,368	–	–
Level 2A assets	1,674,550	1,423,368	–	–
Total adjusted level 2B assets	950,605	475,303	1,264,443	632,221
Level 2B assets	950,605	475,303	1,264,443	632,221
Total cash outflows	504,176,303	89,429,231	489,106,855	82,706,774
Deposits	272,209,694	24,203,659	216,527,162	19,537,298
Unsecured wholesale funding	106,359,474	53,600,766	101,848,746	44,806,790
Secured funding transactions	4,092,627	–	2,386,304	–
Undrawn portion of committed (irrevocable) facilities and other contingent funding obligations	117,507,661	7,617,961	161,230,438	11,248,480
Additional requirements	4,006,846	4,006,846	7,114,205	7,114,205
Total cash inflows	54,047,087	39,216,666	45,460,680	31,747,827
Maturing secured lending transactions backed by collateral	22,184,855	21,240,548	18,586,621	17,283,217
Committed facilities	–	–	–	–
Other inflows by counterparty which are maturing within 30 Days	24,533,688	17,898,106	19,302,269	12,796,237
Operational deposits	7,172,519	–	4,613,190	–
Other cash inflows	156,025	78,013	2,958,599	1,668,373
Liquidity coverage Ratio (%) (Stock of high quality liquid assets/ total net cash outflows over the Next 30 calendar days) *100		202.34		136.18

 

Basel III Computation of Liquidity Coverage Ratio – LKR only

	Amount (LKR’000)
	31 December 2022		31 December 2021
Item	Total un-weighted value	Total weighted value	Total un-weighted value	Total weighted value
Total stock of High-Quality Liquid Assets (HQLA)	100,501,922	100,026,619	63,872,699	63,211,781
Total adjusted level 1A assets	99,551,317	99,551,317	62,550,864	62,550,864
Level 1 assets	99,551,317	99,551,317	62,550,864	62,550,864
Total adjusted Level 2A assets	–	–	–	–
Level 2A assets	–	–	–	–
Total adjusted level 2B assets	950,605	475,303	1,321,835	660,918
Level 2B assets	950,605	475,303	1,321,835	660,918
Total cash outflows	407,234,696	61,192,078	423,205,152	68,030,524
Deposits	242,096,752	21,192,364	198,578,248	17,742,407
Unsecured wholesale funding	62,200,762	30,953,525	74,994,769	33,888,212
Secured funding transactions	4,092,627	–	2,386,304	–
Undrawn portion of committed (irrevocable) facilities and other contingent funding obligations	95,675,249	5,876,882	141,111,240	10,265,313
Additional requirements	3,169,306	3,169,306	6,134,592	6,134,592
Total cash inflows	32,372,540	26,682,614	34,756,791	26,797,017
Maturing secured lending transactions backed by collateral	20,794,949	19,850,642	15,156,024	13,852,619
Committed facilities	–	–	–	–
Other inflows by counterparty which are maturing within 30 Days	11,421,566	6,753,960	17,020,316	11,654,172
Operational deposits	–	–	–	–
Other cash inflows	156,025	78,013	2,580,452	1,290,226
Liquidity coverage Ratio (%) (Stock of high quality liquid assets/ total net cash outflows over the Next 30 calendar days) *100		289.85		152.86

 

Maturity of Assets and Liabilities

As at 31 December 2022	Up to 1 month LKR ’000	1-3 months LKR ’000	3-6 months LKR ’000	6-12 months LKR ’000	1-3 years LKR ’000	3-5 years LKR ’000	Over 5 years LKR ’000	Total LKR ’000
Financial assets
Cash and cash equivalents	16,122,565	–	–	–	–	–	–	16,122,565
Balances with Central Bank of Sri Lanka	9,030,868	–	–	–	–	–	–	9,030,868
Placement with banks	11,202,407	4,022,285	–	–	–	–	–	15,224,692
Derivative financial assets	20,473,544	–	–	–	–	–	–	20,473,544
Financial assets measured at fair value through profit or loss	–	–	795,434	–	–	633,715	–	1,429,149
Financial assets at amortised cost – Loans to and receivables from other customers	23,967,594	44,360,180	31,882,504	46,264,751	96,627,094	56,313,580	69,656,327	369,072,030
Financial assets at amortised cost – Debt and other instruments	1,745,661	9,759,633	2,371,958	1,650,524	18,844,407	11,992,192	4,583,551	50,947,926
Financial assets measured at fair value through other comprehensive income	3,717,657	11,490,644	13,510,430	18,263,819	5,798,500	2,079,021	8,458,989	63,319,060
Other assets	2,056,844	19,592	91,545	111,576	5,274,666	104,057	133,195	7,791,475
Total financial assets	88,317,140	69,652,334	48,651,871	66,290,670	126,544,667	71,122,565	82,832,062	553,411,309
Financial liabilities
Due to banks	11,954,501	3,903,493	–	–	–	–	–	15,857,994
Derivative financial liabilities	84,670	–	–	–	–	–	–	84,670
Financial liabilities at amortised cost – Due to depositors	33,038,328	69,852,202	82,296,428	95,814,357	31,704,690	40,565,243	17,042,778	370,314,026
Financial liabilities at amortised cost – Due to other borrowers	1,862,870	2,700,393	2,555,979	7,533,527	27,331,823	25,833,178	13,327,922	81,145,692
Debt securities in issue	–	1,028,128	294,729	–	8,786,545	1,783,541	4,411,172	16,304,115
Other liabilities	5,770,066	362,616	75,273	129,041	518,832	425,091	820,236	8,101,155
Subordinated term debt	–	3,583,075	–	6,215,834	8,396,255	204,827	–	18,399,991
Total financial liabilities	52,710,435	81,429,907	85,222,409	109,692,759	76,738,145	68,811,880	35,602,108	510,207,643
Total net financial assets/(liabilities)	35,606,705	(11,777,573)	(36,570,538)	(43,402,089)	49,806,522	2,310,685	47,229,954	43,203,666
Contingencies
Guarantees	16,387,487	–	–	–	–	–	–	16,387,487
Shipping guarantees	–	1,229,460	632,593	31,110	–	–	–	1,893,163
Performance bonds	7,748,815	–	–	–	–	–	–	7,748,815
Forward contracts	2,740,603	(5,688,538)	(755,520)	2,472,326	20,540,444	21,712,235	8,458,978	49,480,528
Documentary credit	–	2,041,986	449,934	3,137,249	–	–	–	5,629,169
Total contingencies	26,876,905	(2,417,092)	327,007	5,640,685	20,540,444	21,712,235	8,458,978	81,139,162
Commitments
Commitments in ordinary course of business – Commitments for unutilised credit facilities	87,696,786	–	–	–	–	–	–	87,696,786
Capital commitments	293,579	1,000	–	1,980	–	–	–	296,559
Total commitments	87,990,365	1,000	–	1,980	–	–	–	87,993,345
Total commitments and contingencies	114,867,270	(2,416,092)	327,007	5,642,665	20,540,444	21,712,235	8,458,978	169,132,507

 

As at 31 December 2021	Up to 1 month LKR ’000	1-3 months LKR ’000	3-6 months LKR ’000	6-12 months LKR ’000	1-3 years LKR ’000	3-5 years LKR ’000	Over 5 years LKR ’000	Total LKR ’000
Financial assets
Cash and cash equivalents	10,688,255	–	–	–	–	–	–	10,688,255
Balances with Central Bank of Sri Lanka	9,359,241	–	–	–	–	–	–	9,359,241
Placement with banks	6,288,006	–	–	–	–	–	–	6,288,006
Derivative financial assets	280,235	–	–	–	–	–	–	280,235
Financial assets measured at fair value through profit or loss	–	218,875	–	–	–	–	–	218,875
Financial assets at amortised cost – Loans to and receivables from other customers	19,762,579	40,601,431	20,955,765	44,920,936	90,002,792	56,926,693	92,730,344	365,900,540
Financial assets at amortised cost – Debt and other instruments	21,840	2,297,571	13,032,325	2,323,072	6,334,236	2,665,918	–	26,674,962
Financial assets measured at fair value through other comprehensive income	4,162,207	12,116,150	5,478,870	4,536,581	7,286,765	4,520,387	16,228,476	54,329,436
Other assets	1,276,976	1,295,646	2,199	93,330	45,210	85,755	56,138	2,855,254
Total financial assets	51,839,339	56,529,673	39,469,159	51,873,919	103,669,003	64,198,753	109,014,958	476,594,804
Financial liabilities
Due to banks	651,098	1,344,705	–	1,848,898	–	–	–	3,844,701
Derivative financial liabilities	814,219	–	–	–	–	–	–	814,219
Financial liabilities at amortised cost – Due to depositors	19,848,588	60,836,584	67,139,390	58,139,727	24,144,409	22,426,559	67,325,756	319,861,013
Financial liabilities at amortised cost – Due to other borrowers	5,256,334	6,702,141	5,158,220	3,109,848	16,211,212	14,959,466	17,697,043	69,094,264
Debt securities in issue	462,419	–	696,868	160,197	3,789,061	6,777,540	4,411,171	16,297,256
Other liabilities	2,290,428	313,056	69,543	110,640	466,470	392,836	827,524	4,470,497
Subordinated term debt	–	–	446,151	–	9,334,999	8,401,222	204,904	18,387,276
Total financial liabilities	29,323,086	69,196,486	73,510,172	63,369,310	53,946,151	52,957,623	90,466,398	432,769,226
Total net financial assets/(liabilities)	22,516,253	(12,666,813)	(34,041,013)	(11,495,391)	49,722,852	11,241,130	18,548,560	43,825,578
Contingencies
Guarantees	17,752,274	–	–	–	–	–	–	17,752,274
Shipping guarantees		783,312	1,324,288	544,644	–	–	–	2,652,244
Performance bonds	7,888,729	–	–	–	–	–	–	7,888,729
Forward contracts	(3,753,104)	1,421,553	(3,100,086)	–	6,758,895	12,229,512	12,324,971	25,881,741
Documentary credit	4,876,000	8,894,000	7,303,935	134,000	38,326	–	–	21,246,261
Total contingencies	26,763,899	11,098,865	5,528,137	678,644	6,797,221	12,229,512	12,324,971	75,421,250
Commitments
Commitments in ordinary course of business – Commitments for unutilised credit facilities	68,069,669	–	–	–	–	–	–	68,069,669
Capital commitments	627,175	8,868	118,891	31,936	–	–		786,870
Total commitments	68,696,844	8,868	118,891	31,936	–	–	–	68,856,539
Total commitments and contingencies	94,460,743	11,107,733	5,647,028	710,580	6,797,221	12,229,512	12,324,971	144,277,788

 

Maturity Gap Analysis of Foreign Currency Denominated Financial Assets and Financial Liabilities – USD

As at 31 December 2022	Up to 1 month USD ’000	1-3 months USD ’000	3-6 months USD ’000	6-12 months USD ’000	1-3 years USD ’000	3-5 years USD ’000	Over 5 years USD ’000	Total USD ’000
Total assets	63,622	52,837	25,752	19,989	50,798	26,250	26,108	265,356
Total liabilities	28,949	40,466	31,110	84,920	76,282	74,921	37,952	374,600
Total net financial assets/(liabilities)	34,673	12,371	(5,358)	(64,931)	(25,484)	(48,671)	(11,844)	(109,244)

 

As at 31 December 2021	Up to 1 months USD ’000	1-3 months USD ’000	3-6 months USD ’000	6-12 months USD ’000	1-3 years USD ’000	3-5 years USD ’000	Over 5 years USD ’000	Total USD ’000
Total assets	35,472	36,214	28,742	52,844	38,269	59,706	53,548	304,795
Total liabilities	45,665	30,808	35,744	50,561	89,108	88,319	67,018	407,223
Total net financial assets/(liabilities)	(10,193)	5,406	(7,002)	2,283	(50,839)	(28,613)	(13,470)	(102,428)

 

Sensitivity of Financial Assets and Financial Liabilities

BANK As at 31 December 2022	Up to 1 month LKR ’000	1-3 months LKR ’000	3-6 months LKR ’000	6-12 months LKR ’000	1-3 years LKR ’000	3-5 years LKR ’000	Over 5 years LKR ’000	Non-interest bearing LKR ’000	Total LKR ’000
Financial assets
Cash and cash equivalents	1,566,636	–	–	–	–	–	–	14,555,929	16,122,565
Balances with Central Bank of Sri Lanka	–	–	–	–	–	–	–	9,030,868	9,030,868
Placements with banks	13,018,678	2,206,014	–	–	–	–	–	–	15,224,692
Derivative financial assets	–	–	–	–	–	–	–	20,473,544	20,473,544
Financial assets measured at fair value through profit or loss	–	–	795,433	–	–	–	–	633,716	1,429,149
Financial assets at amortised cost – Loans to and receivables from other customers	139,846,895	95,477,247	31,372,076	35,969,173	26,025,656	20,603,728	8,175,011	11,602,244	369,072,030
Financial assets at amortised cost – Debt and other Instruments	1,745,943	9,889,773	2,339,275	1,650,345	18,746,848	11,992,192	4,583,550	–	50,947,926
Financial assets measured at fair value through other comprehensive income	3,797,959	11,490,644	13,510,430	18,263,819	5,783,110	2,080,095	–	8,393,003	63,319,060
Other assets								7,791,475	7,791,475
Total financial assets	159,976,111	119,063,678	48,017,214	55,883,337	50,555,614	34,676,015	12,758,561	72,480,779	553,411,309
Financial Liabilities
Due to banks	13,763,582	2,094,412	–	–	–	–	–	–	15,857,994
Derivative financial liabilities	–	–	–	–	–	–	–	84,670	84,670
Financial liabilities at amortised cost – Due to depositors	88,920,831	62,265,263	77,026,884	89,260,266	17,039,675	25,900,229	59,916	9,840,962	370,314,026
Financial liabilities at amortised cost – Due to other borrowers	2,735,001	5,933,047	3,394,560	5,221,804	24,879,605	25,933,748	13,047,927	–	81,145,692
Debt securities in issue	–	1,007,125	296,990	–	8,804,760	1,784,070	4,411,170	–	16,304,115
Other liabilities	–	–	–	–	–	–	–	8,101,155	8,101,155
Subordinated term debt	–	3,567,232	–	6,223,229	8,404,530	205,000	–	–	18,399,991
Total Financial liabilities	105,419,414	74,867,079	80,718,434	100,705,299	59,128,570	53,823,047	17,519,013	18,026,787	510,207,643
Interest rate sensitivity gap	54,556,697	44,196,599	(32,701,220)	(44,821,962)	(8,572,956)	(19,147,032)	(4,760,452)	54,453,992

 

BANK As at 31 December 2021	Up to 1 month LKR ’000	1-3 months LKR ’000	3-6 months LKR ’000	6-12 months LKR ’000	1-3 years LKR ’000	3-5 years LKR ’000	Over 5 years LKR ’000	Non-interest bearing LKR ’000	Total LKR ’000
Financial assets
Cash and cash equivalents	844,731	–	–	–	–	–	–	9,843,524	10,688,255
Balances with Central Bank of Sri Lanka	–	–	–	–	–	–	–	9,359,241	9,359,241
Placements with banks	6,288,006	–	–	–	–	–	–	–	6,288,006
Derivative financial assets	–	–	–	–	–	–	–	280,235	280,235
Financial assets measured at fair value through profit or loss	–	–	–	–	–	–	–	218,875	218,875
Financial assets at amortised cost – Loans to and receivables from other customers	246,322,818	18,918,758	23,714,679	14,306,803	22,814,215	20,240,169	11,272,135	8,310,963	365,900,540
Financial assets at amortised cost – Debt and other Instruments	265,131	2,605,943	13,018,250	2,345,808	6,854,024	1,585,806	–	–	26,674,962
Financial assets measured at fair value through other comprehensive income	4,411,761	12,358,532	5,798,879	4,572,520	7,370,764	4,244,869	3,018,322	12,553,789	54,329,436
Other assets	–	–	–	–	–	–	–	2,855,254	2,855,254
Total financial assets	258,132,447	33,883,233	42,531,808	21,225,131	37,039,003	26,070,844	14,290,457	43,421,881	476,594,804
Financial liabilities
Due to banks	–	1,105,860	–	1,105,860	–	–	–	1,632,981	3,844,701
Derivative financial liabilities	–	–	–	–	–	–	–	814,219	814,219
Financial liabilities at amortised cost – Due to depositors	111,704,790	51,549,556	57,791,338	74,085,686	10,929,857	1,586,363	40,503	12,172,920	319,861,013
Financial liabilities at amortised cost – Due to other borrowers	5,117,887	6,606,257	5,116,823	3,621,298	18,045,813	16,614,127	13,972,059	–	69,094,264
Debt Securities in issue	–	–	–	–	–	11,886,086	4,411,170	–	16,297,256
Other liabilities	–	–	–	–	–	–	–	4,470,497	4,470,497
Subordinated term debt	–	–	–	–	9,777,746	8,609,530	–	–	18,387,276
Total financial liabilities	116,822,677	59,261,673	62,908,161	78,812,844	38,753,416	38,696,106	18,423,732	19,090,617	432,769,226
Interest rate sensitivity gap	141,309,770	(25,378,440)	(20,376,353)	(57,587,713)	(1,714,413)	(12,625,262)	(4,133,275)	24,331,264

 

Key Regulatory Ratios

Item	31 December 2022		31 December 2021
	Bank	Group	Bank	Group
Regulatory capital (LKR ’000)
Common equity Tier 1	36,818,873	36,381,997	34,259,288	34,265,838
Tier 1 capital	36,818,873	36,381,997	34,259,288	34,265,838
Total capital	48,004,800	47,574,241	47,968,017	47,974,567
Regulatory capital ratios (%)
Common equity Tier 1 capital ratio (Minimum requirement -7.00%))	10.09	9.94	9.31	9.28
Tier 1 capital ratio (Minimum requirement 8.50%)	10.09	9.94	9.31	9.28
Total capital ratio (Minimum requirement 12.50%)	13.15	12.99	13.03	13.00
Computation of leverage ratio – Bank
Tier 1 capital	36,818,873	36,381,997	34,259,288	34,265,838
Total exposures	621,004,625	620,033,354	518,666,776	517,675,471
On-Balance sheet items (excluding securities financing transactions, but including collateral)	527,140,776	526,169,505	469,824,183	468,832,878
Derivative exposures	68,966,546	68,966,546	17,703,013	17,703,013
Securities financing transaction exposures	2,467,643	2,467,643	2,972,983	2,972,983
Other Off-Balance sheet exposures	22,429,660	22,429,660	28,166,597	28,166,597
Basel III leverage ratio (%) (Tier 1/Total exposure)	5.93	5.87	6.61	6.62
Computation of net stable funding ratio
Total available stable funding	438,464,296	N/A	377,765,097	N/A
Required stable funding – On balance sheet assets	341,855,944	N/A	301,861,759	N/A
Required stable funding – Off balance sheet items	4,629,317	N/A	6,692,019	N/A
Total required stable funding	346,485,261	N/A	308,553,778	N/A
Net stable funding ratio (%)	126.55	N/A	122.43	N/A

 

Basel III Computation of Capital Ratios

Item	31 December 2022		31 December 2021
	Bank LKR ’000	Group LKR ’000	Bank LKR ’000	Group LKR ’000
Common equity Tier 1 (CET1) capital after adjustments	36,818,873	36,381,997	34,259,288	34,265,838
Common equity Tier 1 (CET1) capital	52,778,734	56,909,693	46,687,119	50,436,550
Equity capital (stated capital)/assigned capital	13,182,025	13,182,025	8,600,457	8,600,457
Reserve fund	2,874,968	2,874,968	2,746,968	2,746,968
Published retained earnings/(accumulated retained losses)	22,600,898	26,731,857	22,091,649	25,831,589
Published accumulated Other Comprehensive Income (OCI)	341,004	341,004	(531,794)	(522,303)
General and other disclosed reserves	13,779,839	13,779,839	13,779,839	13,779,839
Unpublished current year's profit/loss and gains reflected in OCI	–	–	–	–
Ordinary shares issued by consolidated banking and financial subsidiaries of the Bank and held by third parties	–	–	–	–
Total adjustments to CET1 capital	15,959,861	20,527,696	12,427,831	16,170,712
Goodwill (net)	–	156,226	–	156,226
Intangible assets (net)	2,198,042	2,218,827	2,227,577	2,252,589
Investment in capital of banks and financial institutions	9,204,363	13,589,480	8,841,360	12,403,003
Others	4,557,456	4,563,163	1,358,894	1,358,894
Additional Tier 1 (AT1) capital after adjustments
Additional Tier 1 (AT1) capital	–	–	–	–
Qualifying additional Tier 1 capital instruments	–	–	–	–
Instruments issued by consolidated banking and financial subsidiaries of the Bank and held by third parties	–	–	–	–
Total Adjustments to AT1 capital
Investment in own shares	–	–	–	–
Others (specify)	–	–	–	–
Tier 2 capital after adjustments	11,185,927	11,192,244	13,708,729	13,708,729
Tier 2 capital	11,185,927	11,192,244	13,708,729	13,708,729
Qualifying Tier 2 capital instruments	7,039,040	7,039,040	10,511,268	10,511,268
Revaluation gains	–	–	–	–
Loan loss provisions	4,146,887	4,153,204	3,197,461	3,197,461
Instruments issued by consolidated banking and financial subsidiaries of the Bank and held by third parties	–	–	–	–
Total adjustments to Tier 2
Investment in own shares	–	–	–	–
Others (specify)	–	–	–	–
CET1 capital	36,818,873	36,381,997	34,259,288	34,265,838
Total Tier 1 capital	36,818,873	36,381,997	34,259,288	34,265,838
Total capital	48,004,800	47,574,241	47,968,017	47,974,567

 

Item	31 December 2022		31 December 2021
	Bank	Group	Bank	Group
Total risk weighted assets (RWA) (LKR ’000)
RWAs for credit risk	331,750,969	332,256,324	339,260,886	339,722,423
RWAs for market risk	8,391,648	8,391,648	10,005,925	10,005,925
RWAs for operational risk	24,960,191	25,491,894	18,909,993	19,380,488
CET1 capital ratio (including capital conservation buffer, countercyclical capital buffer and surcharge on d-sibs) (%)	10.09	9.94	9.31	9.28
of which: capital conservation buffer (%)	2.50	2.50	2.50	2.50
of which: countercyclical buffer (%)	–	–	–	–
of which: capital surcharge on d-sibs (%)	–	–	–	–
Total Tier 1 capital ratio (%)	10.09	9.94	9.31	9.28
Total capital ratio (including capital conservation buffer, countercyclical capital buffer and surcharge on d-sibs) (%)	13.15	12.99	13.03	13.00
of which: capital conservation buffer (%)	2.50	2.50	2.50	2.50
of which: countercyclical buffer (%)	–	–	–	–
of which: capital surcharge on d-sibs (%)	–	–	–	–

 

Credit Risk under Standardised Approach – Credit Risk Exposures and Credit Risk Mitigation (CRM) Effects

	As at 31 December 2022
Asset Class	Exposures before Credit Conversion Factor (CCF) and CRM		Exposures post CCF and CRM		RWA and RWA density (%)
	On-balance sheet amount LKR ’000	Off-balance sheet amount LKR ’000	On-balance sheet amount LKR ’000	Off-balance sheet amount LKR ’000	RWA LKR ’000	RWA Density(ii) %
Bank
Claims on Central Government and CBSL	143,916,614	53,183,986	143,916,614	4,180,549	726,114	0
Claims on foreign sovereigns and their Central Banks	–	–	–	–	–	0
Claims on public sector entities	12,761,124	3,739	–	1,870	1,870	100
Claims on official entities and multilateral development banks	–	–	–	–	–	0
Claims on banks exposures	19,004,404	8,710,665	19,004,404	300,229	6,248,007	32
Claims on financial institutions	8,749,330	–	8,749,330	–	6,141,995	70
Claims on corporates	199,602,404	28,193,439	163,826,635	16,177,194	176,517,585	98
Retail claims	120,592,703	7,349,735	120,592,703	6,172,750	99,476,195	78
Claims secured by residential property	13,062,046	–	13,062,046	–	4,571,716	35
Claims secured by commercial real estate	2,607,521	–	2,607,521	–	2,607,521	100
Non-performing assets (NPAs) (i)	22,105,677	–	22,105,677	–	26,504,249	120
Higher-risk categories	459,798	–	459,798	–	1,149,495	250
Cash items and other assets	16,756,381	85,797,195	16,756,381	–	7,806,222	47
Total	559,618,002	183,238,759	511,081,109	26,832,592	331,750,969
Group
Claims on Central Government and CBSL	143,916,614	53,183,986	143,916,614	4,180,549	726,114	0
Claims on foreign sovereigns and their Central Banks	–	–	–	–	–	0
Claims on public sector entities	12,761,124	3,739	–	1,870	1,870	100
Claims on official entities and multilateral development banks	–	–	–	–	–	0
Claims on banks exposures	19,061,688	8,710,665	19,061,688	300,229	6,271,309	32
Claims on financial institutions	8,749,330	–	8,749,330	–	6,141,995	70
Claims on corporates	199,365,369	28,193,439	163,589,599	16,177,194	176,280,550	98
Retail claims	120,592,703	7,349,735	120,592,703	6,172,750	99,476,195	78
Claims secured by residential property	13,062,046	–	13,062,046	–	4,571,716	35
Claims secured by commercial real estate	2,607,521	–	2,607,521	–	2,607,521	100
Non-performing assets (NPAs) (i)	22,105,677	–	22,105,677	–	26,504,249	120
Higher-risk categories	499,675	–	499,675	–	1,249,189	250
Cash items and other assets	17,379,848	85,797,195	17,379,848	–	8,425,616	48
Total	560,101,595	183,238,759	511,564,701	26,832,592	332,256,324

Note:

(i) NPAs – As per Banking Act Directions on Classification of loans and advances, income recognition and provisioning

(ii) RWA density – Total RWA/exposures post CCF and CRM.

 

Credit Risk under Standardised Approach: Exposures by Asset Classes and Risk Weights

BANK Description	Amount (LKR ’000) as at 31 December 2022 (Post CCF and CRM)				Amount (LKR ’000) as at 31 December 2022 (Post CCF and CRM)
Asset classes / Risk weight	0%	20%	35%	50%	60%	75%	100%	150%	>150%	Total credit exposures amount
Claims on Central Government and CBSL	144,466,591	3,630,572	–	–	–	–	–	–	–	148,097,163
Claims on foreign sovereigns and their Central Banks	–	–	–	–	–	–	–	–	–	–
Claims on public sector entities	–	–	–	–	–	–	1,870	–	–	1,870
Claims on official entities and multilateral development banks	–	–	–	–	–	–	–	–	–	–
Claims on banks exposures	–	11,670,983	–	7,439,679	–	–	193,971	–	–	19,304,633
Claims on financial institutions	–	–	–	5,214,671	–	–	3,534,659	–	–	8,749,330
Claims on corporates	–	1,570,762	–	4,459,266	–	–	173,973,800	–	–	180,003,828
Retail claims	9,568,024	–	–	–	3,324,864	65,565,153	48,307,412	–	–	126,765,453
Claims secured by residential property	–	–	13,062,046	–	–	–	–	–	–	13,062,046
Claims secured by commercial real estate	–	–	–	–	–	–	2,607,521	–	–	2,607,521
Non-performing assets (NPAs)	–	–	–	698,554	–	–	11,911,425	9,495,698	–	22,105,677
Higher-risk categories	–	–	–	–	–	–	–	–	459,798	459,798
Cash items and other assets	8,950,160	–	–	–	–	–	7,806,222	–	–	16,756,382
Total	162,984,775	16,872,317	13,062,046	17,812,170	3,324,864	65,565,153	248,336,880	9,495,698	459,798	537,913,701

 

GROUP Description	Amount (LKR ’000) as at 31 December 2022 (Post CCF and CRM)				Amount (LKR ’000) as at 31 December 2022 (Post CCF and CRM)
Asset classes / Risk weight	0%	20%	35%	50%	60%	75%	100%	150%	>150%	Total credit exposures amount
Claims on central Government and CBSL	144,466,591	3,630,572	–	–	–	–	–	–	–	148,097,163
Claims on foreign sovereigns and their Central Banks	–	–	–	–	–	–	–	–	–	–
Claims on public sector entities	–	–	–	–	–	–	1,870	–	–	1,870
Claims on official entities and multilateral development banks	–	–	–	–	–	–	–	–	–	–
Claims on banks exposures	–	11,688,784	–	7,479,162	–	–	193,971	–	–	19,361,917
Claims on financial institutions	–	–	–	5,214,671	–	–	3,534,659	–	–	8,749,330
Claims on corporates	–	1,570,762	–	4,459,266	–	–	173,736,765	–	–	179,766,793
Retail claims	9,568,024	–	–	–	3,324,864	65,565,153	48,307,412	–	–	126,765,453
Claims secured by residential property	–	–	13,062,046	–	–	–	–	–	–	13,062,046
Claims secured by commercial real estate	–	–	–	–	–	–	2,607,521	–	–	2,607,521
Non-performing assets (NPAs)	–	–	–	698,554	–	–	11,911,425	9,495,698	–	22,105,677
Higher-risk categories	–	–	–	–	–	–	–	–	499,675	499,675
Cash items and other assets	8,954,231	–	–	–	–	–	8,425,617	–	–	17,379,848
Total	162,988,846	16,890,118	13,062,046	17,851,653	3,324,864	65,565,153	248,719,240	9,495,698	499,675	538,397,293

 

Market Risk under Standardised Measurement Method

	31 December 2022 RWA amount
Item	Bank LKR ’000	Group LKR ’000
(a) RWA for interest rate risk	522,681	522,681
General interest rate risk	522,681	522,681
(i) Net long or short position	522,681	522,681
(ii) Horizontal disallowance	–	–
(iii) Vertical disallowance	–	–
(iv) Options	–	–
Specific interest rate risk
(b) RWA for equity	137,147	137,147
(i) General equity risk	74,871	74,871
(ii) Specific equity risk	62,276	62,276
(c) RWA for foreign exchange and gold	389,128	389,128
Capital charge for market risk [(a) + (b) + (c)] * CAR	8,391,648	8,391,648

 

Operational Risk Under Basic Indicator Approach/The Standardised Approach/The Alternative Standardised Approach

Business lines	Capital charge factor	Fixed factor	Gross Income (LKR ’000) as at 31 December 2022
			1st year	2nd year	3rd year
BANK
The basic indicator approach	15%		30,754,816	17,111,682	14,533,979
The standardised approach
Corporate finance	18%
Trading and sales	18%
Payment and settlement	18%
Agency services	15%
Asset management	12%
Retail brokerage	12%
Retail banking	12%
Commercial banking	15%
The alternative standardised approach
Corporate finance	18%
Trading and sales	18%
Payment and settlement	18%
Agency services	15%
Asset management	12%
Retail brokerage	12%
Retail banking	12%	0.035
Commercial banking	15%	0.035
Capital charges for operational risk (LKR ’000)
The basic indicator approach	3,120,024
The standardised approach
The alternative standardised approach
Risk weighted amount for operational risk (LKR ’000)
The basic indicator approach	24,960,191
The standardised approach
The alternative standardised approach
Group
The basic indicator approach	15%		31,340,648	17,519,559	14,869,527
The standardised approach
Corporate finance	18%
Trading and sales	18%
Payment and settlement	18%
Agency services	15%
Asset management	12%
Retail brokerage	12%
Retail banking	12%
Commercial banking	15%
The alternative standardised approach
Corporate finance	18%
Trading and sales	18%
Payment and settlement	18%
Agency services	15%
Asset management	12%
Retail brokerage	12%
Retail banking	12%	0.035
Commercial banking	15%	0.035
Capital charges for operational risk (LKR ’000)
The basic indicator approach	3,186,487
The standardised approach
The alternative standardised approach
Risk weighted amount for operational risk (LKR ’000)
The basic indicator approach	25,491,894
The standardised approach
The alternative standardised approach