HNB Finance : Interim Financial Statement period ended 30th September 2022

INTERIM FINANCIAL STATEMENTS

HNB FINANCE PLC

(for the period ended September 30, 2022)

HNB FINANCE PLC

STATEMENT OF FINANCIAL POSITION

		Audited
	30/09/2022	31/03/2022
As at	LKR	LKR
Assets
Cash and Cash Equivalents	422,054,882	1,282,750,567
Financial Assets at Amortised Cost - Loans and Receivables	24,953,260,423	23,728,547,027
Financial Assets at Amortised Cost - Lease Rentals Receivable and Stock out
on Hire	12,984,378,394	13,616,192,279
Financial assets at amortised cost - Loans and advances to others	274,776,580	295,201,210
Financial Assets Measured at Fair Value Through Other Comprehensive
Income	2,712,111	2,712,110
Financial assets at amortised cost - Debt and other instruments	7,842,492,669	3,332,608,450
Other Financial Assets	275,331,852	71,864,928
Other Non Financial Assets	326,646,383	411,113,119
Investment properties	1,136,000,000	1,136,000,000
Property, Plant and Equipment	1,893,881,899	1,929,115,714
Intangible Assets	260,019,407	291,674,447
Right -of-use assets	292,432,318	237,080,673
Deferred Tax Assets	222,142,957	222,142,957
Total Assets	50,886,129,875	46,557,003,481
Liabilities
Bank Overdraft	786,656,514	1,011,726,138.00
Financial Liabilities at Amortised Cost - Due to Depositors	38,495,958,839	34,703,070,381
Debt Instruments Issued and Other Borrowed Funds	5,037,220,647	3,255,330,464
Other Financial Liabilities	1,190,254,451	1,251,667,473
Other Non Financial Liabilities	131,279,810	189,884,747
Current Tax Liabilities	19,794,841	227,210,752
Post Employment Benefit Liability	318,512,591	298,801,625
Total Liabilities	45,979,677,692	40,937,691,580
Equity
Stated Capital	223,545,481	223,545,481
Reserves	2,020,307,330	2,020,307,329
Retained Earnings	2,662,599,372	3,320,131,820
Total Equity Attributable to Equity Holders of the Company	4,906,452,182	5,563,984,630
Non Controlling Interest		55,327,271
Total Equity	4,906,452,182	5,619,311,901
Total Liabilities and Equity	50,886,129,875	46,557,003,481
Net Asset Value per Share (Rs.)	3.12	3.24

CERTIFICATION:

I certify that the above financial statements are in compliance with the requirements of the Companies Act No. 7 of 2007.

Sgd

K D P C Abeysekera

Chief Financial Officer

The Board of Directors is responsible for the preparation and presentation of these Financial Statements. Signed for and on behalf of the Board of Directors by,

Sgd	Sgd
B M D C Prabhath	P L P Withana
Managing Director/CEO	Director
08-Nov-22	08-Nov-22

HNB FINANCE PLC

STATEMENT OF COMPREHENSIVE INCOME

	FOR THE 6 MONTHS ENDED		FOR THE 3 MONTHS ENDED
	30/09/2022	30/09/2021	Variance	30/09/2022	30/09/2021	Variance
	LKR	LKR	%	LKR	LKR	%
Income	5,474,190,473	3,448,577,521	58.74	3,178,831,300	1,691,703,384	87.91
Interest Income	5,020,959,124	3,211,415,814	56.35	2,840,177,230	1,554,354,370	82.72
Interest Expenses	(3,363,785,832)	(1,295,686,611)	(159.61)	(2,006,008,898)	(615,119,269)	(226.12)
Net Interest Income	1,657,173,292	1,915,729,203	(13.50)	834,168,333	939,235,101	(11.19)
Net Fee and Commission Income	193,249,150	120,665,873	60.15	182,588,089	67,631,298	169.98
Other Operating Income	259,982,198	116,495,834	123.17	156,065,981	69,717,716	123.85
Total Operating Income	2,110,404,641	2,152,890,910	(1.97)	1,172,822,403	1,076,584,115	8.94
Impairment Charges and Other Losses	(622,809,299)	(382,751,407)	(62.72)	(448,505,996)	(177,434,995)	(152.77)
Net Operating Income	1,487,595,342	1,770,139,503	(15.96)	724,316,407	899,149,120	(19.44)
Operating Expenses
Personnel Expenses	(742,391,122)	(683,510,117)	(8.61)	(368,520,848)	(339,074,641)	(8.68)
Depreciation of Property, Plant and Equipment	(73,225,938)	(63,749,609)	(14.86)	(38,044,682)	(34,823,248)	(9.25)
Amortisation of Intangible Assets	(37,329,568)	(38,712,667)	3.57	(17,884,377)	(18,737,039)	4.55
Other Operating Expenses	(1,229,357,713)	(610,298,809)	(101.44)	(731,006,574)	(302,548,190)	(141.62)
Operating Profit before Tax on Financial Services	(594,708,998)	373,868,301	(259.07)	(431,140,074)	203,966,002	(311.38)
Tax on Financial Services	(51,923,134)	(130,331,823)	60.16	(27,089,434)	(67,923,740)	60.12
Profit before Taxation	(646,632,132)	243,536,478	(365.52)	(458,229,508)	136,042,262	(436.83)
Income Tax Expense	(9,908,738)	(75,940,047)	86.95	-	(45,261,787)	(100.00)
Profit/(Loss) for the Period	(656,540,870)	167,596,431	(491.74)	(458,229,508)	90,780,475	(604.77)
Basic Earnings Per Share (Rs.)	(0.38)	0.10	(481.80)	(0.27)	0.04	(765.47)

HNB FINANCE PLC

STATEMENT OF CHANGES IN EQUITY

					Non Controling
	Stated Capital	Retained Earnings	Statutory Reserve	Fair Value Reserve	Interest	Total Equity
	Rs.	Rs.	Rs.	Rs.	Rs.	Rs.
Balance as at 01st April 2021	223,545,481	2,896,625,533	1,091,098,380	683,636,861	-	4,894,906,255
Net profit for the Period	-	167,596,431	-	-	-	167,596,431
Other Comprehensive Income, net of Tax	-	-	-	-	-	-
Transfers During the Period	-	-	-	-	-	-
Balance as at 30th September 2021	223,545,481	3,064,221,964	1,091,098,380	683,636,861	-	5,062,502,686
Balance as at 01st April 2022	223,545,481	3,320,131,820	1,184,616,843	835,690,486	55,327,271	5,619,311,901
Net profit for the Period	-	(656,540,870)		-	-	(656,540,870)
Other Comprehensive Income, net of Tax	-	-	-	-		-
Non-controlling interest movement					(55,327,271)	(55,327,271)
NCI Payable		(991,579)				(991,579)
Balance as at 30th September 2022	223,545,481	2,662,599,372	1,184,616,843	835,690,486	-	4,906,452,182

HNB FINANCE PLC

CASH FLOW STATEMENT

	Period ended	30/09/2022	30/09/2021
	LKR	LKR
	Cash Flows from/(Used in) Operating Activities
	Profit and Other Comprehensive Income/(Expenses) before Taxation	(646,632,132)	243,536,478
	Adjustments for
	Interest expenses on borrowings	364,594,918	-
	Interest expenses on debentures	155,303,242	-
	Depreciation of Property, Plant and Equipment	73,225,938	63,749,609
	Amortisation of Intangible Assets	37,329,568	38,712,667
	Impairment Charges and Other Losses	622,809,299	382,751,407
	Loss/(Profit) on Disposal of Property, Plant and Equipment	-	(816,069)
	Provision/(Reversal) for Defined Benefit Plans	31,596,296	24,908,262
	Ammortization of Right of use assets	51,841,391	37,507,144
	Interest Expenses from lease Liability	19,191,867	14,834,565
	Dividend Received	-	240,000
	Interest Income on Investing Activities	(580,340,904)	(63,925,311)
	Provision for value added tax	51,923,134	130,331,823
	Crop insurance levy	673,897	1,622,960
	Operating Profit before Working Capital Changes	181,516,513	873,453,536
	(Increase)/Decrease in Loans and advances to customers	(1,562,305,507)	(15,857,058)
	(Increase)/Decrease in Lease Rentals Receivable and Stock out on Hire	346,596,698	179,399,010
	(Increase)/Decrease in Loans and advances to others	20,424,630
	(Increase)/Decrease in Other Financial Assets	(203,466,924)	41,699,209
	(Increase)/Decrease in Other Non Financial Assets	84,466,736	139,438,087
	Increase/(Decrease) in Amounts Due to Customers	3,792,888,458	(1,760,515,987)
	Increase/(Decrease) in Other Financial Liabilities	(61,413,022)	99,961,331
	Increase/(Decrease) in Other Non Financial Liabilities	(58,604,937)	(3,899,014)
	Cash Generated from Operations	2,540,102,645	(446,320,885)
	Retirement Benefit Liabilities Paid	(11,885,330)	(8,217,000)
	Value added tax Paid	(94,458,884)	(105,837,180)
	Crop insurance levy Paid	(2,961,359)	(768,160)
	Income Tax Paid	(172,501,437)	(19,555,525)
	Net Cash from/(Used in) Operating	2,258,295,635	(580,698,750)
	Cash Flows from/(Used in) Investing Activities
	Acquisition of Property, Plant and Equipment	(38,076,617)	(146,705,108)
	Acquisition of Investment Property	-	(140,768,316)
	Acquisition of Intangible Assets	(5,590,034)	(66,143,164)
	Financial Assets Fair value Through Profit or loss - Treasury Bond Investment		16,250,272
	Net of investment in Financial assets at amortised cost - government security	(3,403,877,404)	(1,166,523,243)
	Net investment in Financial assets at amortised cost - fixed deposits	(525,665,912)	1,925,000,000
	Payments to Non controlling shareholders	(56,318,850)	-
	Interest Received	-	122,822,256
	Net Cash Flows from/(Used in) Investing Activities	(4,029,528,818)	543,932,696
	Cash Flows from/(Used in) Financing Activities
	Net Cash Flow from Syndicated Loans and Other Bank Facilities	1,304,989,720	(800,000,000)
	Net Cash Flow from Debt Issued and Other Borrowings	(42,997,697)	-
	Lease Rental Payments	(126,384,903)	(57,887,517)
	Bank Overdraft	-	335,113,634
	Net Cash Flows from/(Used in) Financing Activities	1,135,607,120	(522,773,883)
	Net Increase in Cash and Cash Equivalents	(635,626,063)	(559,539,937)
	Cash and Cash Equivalents at the Beginning of the Period	271,024,429	645,635,660
	Cash and Cash Equivalents at the End of the Period	(364,601,634)	86,095,723
	CASH AND CASH EQUIVALENTS IN THE CASH FLOW STATEMENT
	Notes and Coins Held	213,821,893	123,295,961
	Balances with Banks	208,232,990	297,913,395
	Bank Overdrafts	(786,656,514)	(335,113,634)
	Net Cash and Cash Equivalents	(364,601,632)	86,095,723