SANASA Development Bank : Interim Financial Statements for the period ended 30th June 2022

Interim Financial Statements For the Period Ended June 2022

SANASA DEVELOPMENT BANK PLC

INCOME STATEMENT

			Bank
In Rupees Thousands (Rs'000)	For the period ended		For the quarter ended
	30th June	Change		30th June	Change
	2022	2021			2022	2021
Interest income	9,054,781	7,274,102	24%		4,926,922	3,589,335	37%
Interest expenses	(5,611,795)	(4,105,127)	37%		(3,452,273)	(2,048,565)	69%
Net interest income	3,442,986	3,168,975	9%		1,474,650	1,540,769	-4%
Fee and commission income	163,282	215,735	-24%		49,457	78,805	-37%
Fee and commission expenses	(13,154)	(6,273)	110%		(6,053)	(1,907)	217%
Net fee and commission income	150,128	209,462	-28%		43,404	76,898	-44%
Net gains/(losses) from trading	(3,304)	707	-567%		(241)	707	-134%
Net fair value gains/(losses) on financial assets at fair value		125,622	-78%		33,235	75,069	-56%
through profit or loss	27,960
Net other operating income	179,833	16,019	1023%		72,955	3,950	1747%
Total operating income	3,797,604	3,520,785	8%		1,624,003	1,697,393	-4%
Impairment for loans and other losses	(1,038,702)	(359,371)	189%		(555,120)	(203,259)	173%
Net operating income	2,758,902	3,161,414	-13%		1,068,883	1,494,133	-28%
Personnel expenses	(1,405,262)	(1,252,268)	12%		(699,134)	(595,445)	17%
Depreciation and amortization expenses	(217,617)	(224,717)	-3%		(91,278)	(100,352)	-9%
Other expenses	(817,231)	(772,078)	6%		(453,051)	(370,558)	22%
Operating profit/ (loss) before VAT on financial services	318,792	912,351	-65%		(174,580)	427,778	-141%
Value Added Tax (VAT) on financial services	(176,893)	(266,473)	-34%		(1,098)	(124,149)	-99%
Operating profit/(loss) after VAT on financial services	141,899	645,879	-78%		(175,678)	303,629	-158%
Profit/(loss) before tax	141,899	645,879	-78%		(175,678)	303,629	-158%
Income tax expenses	(63,660)	(143,679)	-56%		73,173	(103,464)	-171%
Profit/(loss) for the period	78,239	502,199	-84%		(102,505)	200,166	-151%
Profit/(loss) attributable to:
Equity holders of the parent	78,239	502,199	-84%		(102,505)	200,166	-151%
Non-controlling interests	-	-	-		-	-	-
	78,239	502,199	-84%		(102,505)	200,166	-151%
Earnings per share on profit
Basic earnings per ordinary share (Rs.)	0.49	5.48	-91%		(0.64)	2.19	-129%
Diluted earnings per ordinary share (Rs.)	0.49	5.48	-91%		(0.64)	2.19	-129%
SANASA DEVELOPMENT BANK PLC
STATEMENT OF COMPREHENSIVE INCOME
			Bank
In Rupees Thousands (Rs'000)	For the period ended			For the quarter ended
	30th June	Change		30th June	Change
	2022	2021			2022	2021
Profit/(loss) for the period	78,239	502,199	-84%		(102,505)	200,166	-151%
Other comprehensive income/(expenses) not to be reclassified to
income statement
Actuarial gains/(losses)on defined benefit plans	-	-	-		-	-	-
Deferred tax relating to defined benefit plans	-	-	-		-	-	-
Gains/(Losses) on re-measuring investments in equity instruments	-	-	-		-	-	-
designated at fair value through other comprehensive income
Other comprehensive income/(expenses) for the period net of taxes	-	-	-		-	-	-
Total comprehensive income/(expenses) for the period
78,239	502,199	-84%		(102,505)	200,166	-151%
Total comprehensive income/(expenses) attributable to:
Equity holders of the parent	78,239	502,199	-84%		(102,505)	200,166	-151%
Non-controlling interests	-	-	-		-	-	-
Total comprehensive income/(expenses) for the period
78,239	502,199	-84%		(102,505)	200,166	-151%

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SANASA DEVELOPMENT BANK PLC

STATEMENT OF FINANCIAL POSITION

		Bank
In Rupees Thousands (Rs'000)	As at 30.06.2022	As at 31.12.2021	Change
		(Audited)
Assets
Cash and cash equivalents	3,642,002	3,117,485	17%
Placements with banks	21,863,430	15,108,410	45%
Financial assets fair value through Profit or Loss	1,537,464	727,787	111%
Financial assets at amortised cost
- loans and receivebles from other customers	111,563,132	111,891,256	0%
- debt and other instruments	15,520,313	12,031,302	29%
Financial assets measured at fair value through other comprehensive income	56,939	56,939	-
Investment in subsidiary	6,163	6,163	-
Property, plant and equipment	953,326	952,104	0%
Right of use assets	554,647	565,477	-2%
Investment properties	19,695	19,167	3%
Intangible assets	461,726	338,933	36%
Deferred tax assets	357,606	299,448	19%
Other assets	3,233,950	2,704,446	20%
Total assets	159,770,393	147,818,916	8%
Liabilities
Financial liabilities at amortised cost
- due to depositors	97,596,019	93,902,939	4%
- due to other borrowers	41,691,232	33,569,838	24%
Subordinated debt	5,092,800	3,752,578	36%
Retirement benefit obligations	609,392	571,665	7%
Current tax liabilities	546,241	293,250	86%
Other liabilities	789,435	1,598,949	-51%
Total liabilities	146,325,119	133,689,220	9%
Equity
Stated capital/assigned capital	11,287,765	11,287,765	-
Statutory reserve fund	314,173	314,173	-
Retained earnings	1,815,730	2,500,153	-27%
Other reserves	27,605	27,605	-
Total equity	13,445,274	14,129,697	-5%
Total equity and liabilities
159,770,393	147,818,916	8%
	(0)	0
Contingent liabilities and commitments	211,078	203,139	4%
Net asset value per share (Rs.)	84	88	-5%
Memorandum information
Number of employees	1,415	1,433	-1%
Number of branches	94	94	-

Certification:

We certify that the above Financial Statements are in compliance with the requirements of the Companies Act No. 7 of 2007.

Sgd

Niranjan Thangarajah

Acting Chief Executive Officer

We, the undersigned, being the Directors of the SANASA Development Bank PLC, jointly certify that :-

( a ) the above statements have been prepared in compliance with the format and definitions prescribed by the Central Bank of Sri Lanka: and

( b ) ) the information contained in these statements have been extracted from the unaudited financial statements of the Bank, unless indicated as audited.

Sgd	Sgd
Prasanna Premaratna	Chaaminda Kumarasiri
Director	Director
12 August 2022
Colombo	2

SANASA DEVELOPMENT BANK PLC

STATEMENT OF CHANGES IN EQUITY

		Bank
In Rupees Thousands (Rs'000)	Stated capital /		Reserves
	Assigned capital
					Total equity
	Ordinary voting	Statutory	Retained	Other reserves
	OCI reserve	General
	shares	reserve fund	earnings
		reserves
For the period ended 30.06.2021
Balance as at 01.01.2021 (Opening balance)	7,727,941	270,009	1,890,621	(19,052)	46,657	9,916,176
Total comprehensive income for the period
Profit/(loss) for the period (net of tax)	-	-	502,199	-	-	502,199
Other comprehensive income (net of tax)	-	-	-	-	-	-
Total comprehensive income/(expenses) for the period	-	-	502,199	-	-	502,199
Transfer to statutory reserve fund	-	-	-	-	-	-
Transactions with equity holders, recognized directly in equity
Rights issue	-					-
Dividend to equity holders	-	-	-	-	-	-
Cash dividend - 2020	-	-	(206,046)	-	-	(206,046)
Other	-	-	157	-	-	157
Total transactions with equity holders	-	-	(205,889)	-	-	(205,889)
Balance as at 30.06.2021 (Closing balance)	7,727,941	270,009	2,186,931	(19,052)	46,657	10,212,487
For the period ended 30.06.2022
Balance as at 01.01.2022 (Opening balance)	11,287,765	314,173	2,500,153	(19,052)	46,657	14,129,697
Total comprehensive income for the period
Profit/(loss) for the period (net of tax)	-	-	78,239	-	-	78,239
Other comprehensive income (net of tax)	-	-	-	-	-	-
Total comprehensive income/(expenses) for the period	-	-	78,239	-	-	78,239
Transfer to statutory reserve fund	-	-	-	-	-	-
Transactions with equity holders, recognized directly in equity
Share issue	-	-	-	-	-	-
Dividend to equity holders
Cash dividend - 2021	-	-	(241,048)	-	-	(241,048)
Other transactions - Surcharge Tax	-	-	(521,613)			(521,613)
Total transactions with equity holders	-	-	(762,661)	-	-	(762,661)
Balance as at 30.06.2022 (Closing balance)	11,287,765	314,173	1,815,730	(19,052)	46,657	13,445,274

Statutory Reserve Fund

Every Licensed Specialised Bank has to make a Provision not less than 5% out of profit after tax to the Statutory Reserve Fund. Such provision should be made annually as stipulated by the Banking Act No. 30 of 1988 as amended by Banking (Amendment) Act No. 33 of 1995 until the said Reserve Fund is equal to 50% of the Equity Capital of the Bank. Thereafter, the Bank has to make a provision not less than 2% out of profit after tax to the Statutory Reserve Fund until the said Fund is equal to the Equity Capital of the Bank.

General Reserve

The General Reserve is created after provisioning for a Statutory Reserve Fund and Interim Dividend payments for the respective shareholders, this reserve will be used by the Bank for the future capitalisation purposes of the Bank.

Fair value through OCI/Available For Sale Reserve

The available for sale reserve is consisted of fair value adjustment made to unquoted equity investment.

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SANASA DEVELOPMENT BANK PLC

STATEMENT OF CASH FLOWS

In Rupees Thousands (Rs'000)	Bank
	01.01.2022 to	01.01.2021 to
	30.06.2022	30.06.2021
Cash flows from / (used in) operating activities
Interest received	9,190,132	7,418,439
Fee and commission received	171,024	210,145
Receipts from other operating activities*	9,053	8,328
Interest payment	(5,529,169)	(4,722,350)
Cash payment to employees	(1,335,840)	(1,446,447)
Payments to suppliers and other operating activities**	(781,892)	(733,151)
Fee and commission expenses	(13,154)	(6,273)
Operating profit before changes in operating assets	1,710,153	728,691
(Increase)/decrease in operating assets
Funds advanced to customers	(955,545)	(6,545,385)
Net (increase)/ decrease in other short term securities	(953)	(50,317)
Net (increase)/ decrease in other assets*	(465,239)	(541,549)
Increase/(decrease) in operating liabilities
Deposits from customers	3,783,015	6,279,865
Net increase/ (decrease) in other liabilities**	(529,009)	(94,684)
Net cash from operating activities before income tax	3,542,421	(223,378)
VAT on financial services paid ***	(240,762)	(266,473)
Income tax paid	(503,791)	(168,471)
Net cash from operating activities	2,797,867	(658,322)
Cash flows from / (used in) investing activities
Dividend received	346	7,691
(Increase)/ decrease in dealing securities	(785,021)	414,210
(Increase)/ decrease in treasury bonds and other investments	(8,905,294)	(5,183,309)
Proceeds from sale of property, plant and equipment	165	94
Purchase of property, plant and equipment	(101,959)	(327,564)
Purchase of intangible assets	(189,219)	(16,917)
Net cash from/ (used in) investing activities	(9,980,982)	(5,105,793)
Cash flows from (used in) financing activities
Proceeds from Issuance/Allotment of Shares	-	-
Dividend Paid	(241,048)	(206,046)
Proceeds from Issuance/Allotment of Shares		-
Repayment of long term borrowing	(17,416,098)	(26,705,153)
Interest paid on subordinated debt	(195,587)	(168,850)
Increase/(decrease) in borrowing	26,898,186	29,584,617
Funds received/(utilized) during the period	-	42
Funds received/(utilized) during the period	-	-
Net cash flow from/ (used in) financing activities	9,045,452	2,504,610
Net increase/ (decrease) in cash and cash equivalents
1,862,337	(3,259,505)
Cash and cash equivalent at the beginning of the period	7,312,915	12,525,900
Cash and cash equivalents at the end of the period	9,175,252	9,266,395
Reconciliation of cash and cash equivalents	9,175,252
Cash and cash equivalents	3,642,002	6,162,781
Repurchase agreement	780,850	803,614
Fixed deposits less than 3 months	4,752,400	2,300,000
	9,175,252	9,266,395

*Changes in other assets classified under receipts from other operating activities has been reclassified to net (increase)/ decrease in other assets and comparative figure in these Financial Statements is amended.

**Changes in other liabilities classified under payments on other operating activities has been reclassified to net increase/ (decrease) in other liabilities and comparative figure in these Financial Statements is amended.

• VAT on FS paid presented under cash flows from operating activities has been reclassified and presented under tax paid and comparative figure in these Financial Statements is amended.

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