SANASA Development Bank : Interim Financial Statements for the period ended 31.12.2021

Interim Financial Statements

For the Period Ended 31st December 2021

SANASA DEVELOPMENT BANK PLC

INCOME STATEMENT

			Bank
In Rupees Thousands (Rs'000)	For the Twelve months ended			For the quarter ended
	31st December	Change		31st December	Change
	2021	2020			2021	2020
	Unaudited	Audited			Unaudited	Audited
Interest income	14,792,068	15,442,003	-4%		3,879,535	3,913,691	-1%
Interest expenses	(8,018,419)	(9,314,576)	-14%		(1,987,695)	(2,103,214)	-5%
Net interest income	6,773,649	6,127,426	11%		1,891,840	1,810,476	4%
Fee and commission income	413,675	390,619	6%		100,975	114,891	-12%
Fee and commission expenses	(23,327)	(14,334)	63%		(15,293)	(4,384)	249%
Net fee and commission income	390,347	376,285	4%		85,682	110,507	-22%
Net gains/(losses) from trading	4,144	5,228	-21%		1,387	(209)	-764%
Net fair value gains/(losses) on financial assets at fair value	234,934	268,710	-13%		58,525	79,297	-26%
through profit or loss
Net other operating income	32,775	55,227	-41%		(15,161)	18,447	-182%
Total operating income	7,435,849	6,832,877	9%		2,022,273	2,018,518	0.19%
Impairment for loans and other losses	(606,030)	(417,039)	45%		(151,104)	(55,412)	173%
Net operating income	6,829,819	6,415,838	6%		1,871,169	1,963,105	-5%
Personnel expenses	(2,542,695)	(2,576,773)	-1%		(663,201)	(865,531)	-23%
Depreciation and amortization expenses	(528,447)	(454,569)	16%		(196,406)	(134,471)	46%
Other expenses	(1,845,612)	(1,400,539)	32%		(576,449)	(424,190)	36%
Operating profit/ (loss) before VAT on financial services	1,913,065	1,983,957	-4%		435,114	538,914	-19%
Value Added Tax (VAT) on financial services	(548,044)	(571,027)	-4%		(137,282)	(177,192)	-23%
Operating profit/(loss) after VAT on financial services	1,365,022	1,412,930	-3%		297,832	361,722	-18%
Profit/(loss) before tax	1,365,022	1,412,930	-3%		297,832	361,722	-18%
Income tax expenses	(456,209)	(576,643)	-21%		(139,080)	(200,822)	-31%
Profit/(loss) for the period	908,812	836,287	9%		158,752	160,900	-1%
Profit/(loss) attributable to:
Equity holders of the parent	908,812	836,287	9%		158,752	160,900	-1%
Non-controlling interests	-	-	-		-	-	-
	908,812	836,287	9%		158,752	160,900	-1%
Earnings per share on profit
Basic earnings per ordinary share (Rs.)	7.85	11.05	-29%		1.37	2.13	-36%
Diluted earnings per ordinary share (Rs.)	7.85	11.05	-29%		1.37	2.13	-36%
SANASA DEVELOPMENT BANK PLC
STATEMENT OF COMPREHENSIVE INCOME
			Bank
In Rupees Thousands (Rs'000)	For the Twelve months ended			For the quarter ended
	31st December	Change		31st December	Change
	2021	2020		2021	2020
	Unaudited	Audited			Unaudited	Audited
Profit/(loss) for the period	908,812	836,287	9%		158,752	160,900	-1%
Other comprehensive income/(expenses) not to be reclassified to
income statement
Actuarial gains/(losses)on defined benefit plans	34,301	(1,855)	-1949%		34,301	93,057	-63%
Deferred tax relating to defined benefit plans	(8,232)	519	-1685%		(8,232)	(22,259)	-63%
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	26,069	(1,336)	-2052%		26,069	70,797	-63%
Total comprehensive income/(expenses) for the period
934,881	834,952	12%		184,820	231,698	-20%
Total comprehensive income/(expenses) attributable to:
Equity holders of the parent	934,881	834,952	12%		184,820	231,698	-20%
Non-controlling interests	-	-	-		-	-	-
Total comprehensive income/(expenses) for the period
934,881	834,952	12%		184,820	231,698	-20%

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SANASA DEVELOPMENT BANK PLC

STATEMENT OF FINANCIAL POSITION

		Bank
In Rupees Thousands (Rs'000)	As at 31.12.2021	As at 31.12.2020	Change
	(Unudited)	(Audited)
Assets
Cash and cash equivalents	3,117,485	9,640,916	-68%
Placements with banks	15,108,410	2,823,628	435%
Financial assets recognized through profit or loss - measured at fair value	727,787	4,600,458	-84%
Financial assets at amortised cost
- loans and advances	111,928,934	102,662,269	9%
- debt and other instruments	12,031,302	5,244,005	129%
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	952,104	661,695	44%
Right of use assets	565,477	689,646	-18%
Investment properties	19,167	20,223	-5%
Intangible assets	338,933	395,123	-14%
Deferred tax assets	290,405	231,673	25%
Other assets	2,704,446	2,026,987	33%
Total assets	147,847,552	129,059,724	15%
Liabilities
Financial liabilities at amortised cost
- due to depositors	93,903,809	93,271,727	1%
- due to other borrowers	33,549,102	18,090,500	85%
Debt securities issued	-	1,013,899	-100%
Subordinated debt	3,752,578	4,052,630	-7%
Retirement benefit obligations	571,665	571,382	0.05%
Current tax liabilities	293,887	274,215	7%
Other liabilities	1,621,280	1,869,195	-13%
Total liabilities	133,692,321	119,143,548	12%
Equity
Stated capital/assigned capital	11,287,765	7,727,941	46%
Statutory reserve fund	315,450	270,009	17%
Retained earnings	2,524,410	1,890,621	34%
Other reserves	27,605	27,605	-
Total equity	14,155,231	9,916,176	43%
Total equity and liabilities
147,847,552	129,059,724	15%
	0	0
Contingent liabilities and commitments	203,139	194,554	4%
Net asset value per share (Rs.)	88	108	-19%
Memorandum information
Number of employees	1,433	1,486	-4%
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	Sgd
Champa Perera	Terrance Kumara
Head of Finance	Chief Financial Officer

We, the undersigned, being the Chairman, Director and Acting Chief Executive Officer 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	Sgd
Lakshman Abeysekera	Chaaminda Kumarasiri	Niranjan Thangarajah
Chairman	Director	Acting Chief Executive Officer
25 February 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 31.12.2020
Balance as at 01.01.2020 (Opening balance)	5,921,538	228,282	1,491,554	(19,052)	46,657	7,668,979
Total comprehensive income for the period
Profit/(loss) for the period (net of tax)	-	-	836,287	-	-	836,287
Other comprehensive income (net of tax)	-	-	(1,336)	-	-	(1,336)
Total comprehensive income/(expenses) for the period	-	-	834,952	-	-	834,952
Transfer to statutory reserve fund	-	41,727	(41,727)	-	-	-
Transactions with equity holders, recognized directly in equity
Rights issue	1,526,267					1,526,267
Dividend to equity holders
Scrip dividend - 2019	280,136	-	(280,136)	-	-	-
Cash dividend - 2019	-	-	(114,022)	-	-	(114,022)
Other	-	-	-	-	-	-
Total transactions with equity holders	1,806,403	41,727	(435,885)	-	-	1,412,245
Balance as at 31.12.2020 (Closing balance)	7,727,941	270,009	1,890,621	(19,052)	46,657	9,916,176
For the period ended 31.12.2021
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)	-	-	908,812	-	-	908,812
Other comprehensive income (net of tax)	-	-	26,069	-	-	26,068.55
Total comprehensive income/(expenses) for the period	-	-	934,881	-	-	934,881
Transfer to statutory reserve fund	-	45,441	(45,441)	-	-	-
Transactions with equity holders, recognized directly in equity
Share issue	3,559,824	-	-	-	-	3,559,824
Dividend to equity holders
Cash dividend - 2020	-	-	(206,046)	-	-	(206,046)
Other transactions - SPO issue cost	-	-	(49,761)	-	-	(49,761)
Other transactions	-	-	157			157
Total transactions with equity holders	3,559,824	45,441	(301,091)	-	-	3,304,174
Balance as at 31.12.2021 (Closing balance)	11,287,765	315,450	2,524,410	(19,052)	46,657	14,155,231

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
	01.01.2021 to		01.01.2020 to
	31.12.2021		31.12.2020
	(Unaudited)		(Audited)
Cash flows from / (used in) operating activities
Interest received	14,761,484		13,826,070
Fee and commission received	426,652		371,106
Receipts from other operating activities*	24,959		54,907
Interest payment	(8,294,109)		(9,374,607)
Cash payment to employees	(2,567,176)		(2,356,033)
Payments on other operating activities**	(1,961,681)		(1,158,926)
Fee and commission expenses	(23,327)		(14,334)
VAT on financial services	(548,044)		(571,027)
Operating profit before changes in operating assets	1,818,759		777,155
(Increase)/decrease in operating assets
Funds advanced to customers	(10,042,760)		(15,761,587)
Other short term securities	204,596		588,711
Other assets*	(870,562)		(592,843)
Increase/(decrease) in operating liabilities
Deposits from customers	836,971		20,724,939
Other libilities**	107,525		31,838
Net cash from operating activities before income tax	(7,945,472)		5,768,213
Income tax paid	(448,328)		(582,398)
Net cash from operating activities	(8,393,800)		5,185,815
Cash flows from / (used in) investing activities
Dividend received	7,816		320
(Increase)/ decrease in dealing securities	4,111,749		(799,210)
(Increase)/ decrease in treasury bonds and other investments	(16,411,467)		(1,629,229)
Proceeds from sale of property, plant and equipment	413		8,178
Purchase of property, plant and equipment	(495,986)		(214,732)
Purchase of intangible assets	(16,917)		(153,653)
Net cash flow from acquisition of investment in subsidiary	-		(6,163)
Net cash from/ (used in) investing activities	(12,804,391)		(2,794,488)
Cash flows from (used in) financing activities
Proceeds from issuance/allotment of shares	3,559,824		1,526,267.20
Dividend paid	(206,046)		(114,022)
Repayment of long term borrowing	(72,672,458)		(20,270,734)
Interest paid on subordinated debt	(356,089)		(455,971)
Increase/(decrease) in borrowing	87,214,695		18,534,312
Funds received/(utilized) during the period	42		42
Net cash flow from/ (used in) financing activities	17,539,968		(780,106)
Net increase/ (decrease) in cash and cash equivalents
(3,658,223)		1,611,221
Cash and cash equivalent at the beginning of the period	12,525,900		10,914,679
Cash and cash equivalents at the end of the period	8,867,677		12,525,900
Reconciliation of cash and cash equivalents	8,867,677
Cash and cash equivalents	3,117,485		9,640,916
Repurchase agreement	500,192		1,678,514
Fixed deposits less than 3 months	5,250,000		1,206,470
	8,867,677		12,525,900

*Changes in other assets classified under receipts from other operating activities in 31 December 2020 has been reclasified to changes in other assets and comparative figure in this Financial Statements is amended.

**Changes in other liabilities classified under payments on other operating activities in 31 December 2020 has been reclasified to changes in other liabilities and comparative figure in this Financial Statements is amended.

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