MERCHANT BANK OF SRI LANKA & FINANCE PLC UNAUDITED
FINANCIAL STATEMENTS
For the Period ended 31st December 2022
Rating LRA " [SL] BBB+
(Stable Outlook)"
Co.Reg.No. PQ10
2
Merchant Bank of Sri Lanka & Finance PLC
Unaudited Statement of Profit or Loss
Company
Quarter ended | Twelve months ended | ||||
12/31/2022 | 12/31/2021 | Change | 12/31/2022 | 12/31/2021 | Change |
(Unaudited) | (Audited) | % | (Unaudited) | (Audited) | % |
Group
Quarter ended | Twelve months ended | ||||
12/31/2022 | 12/31/2021 | Change | 12/31/2022 | 12/31/2021 | Change |
(Unaudited) | (Audited) | % | (Unaudited) | (Audited) | % |
LKR '000 | LKR '000 | LKR '000 | LKR '000 | LKR '000 | LKR '000 | LKR '000 | LKR '000 | ||||||
Income | 1,789,908 | 1,711,880 | 4.6 | 6,542,592 | 5,971,065 | 9.6 | 2,013,007 | 1,798,912 | 11.9 | 7,264,803 | 6,319,853 | 15.0 | |
Interest and similar income | 1,789,743 | 1,510,451 | 18.5 | 6,451,082 | 5,525,955 | 16.7 | 1,876,053 | 1,533,461 | 22.3 | 6,704,775 | 5,601,459 | 19.7 | |
Interest and similar expenses | 1,479,064 | 630,141 | 134.7 | 4,695,684 | 2,675,588 | 75.5 | 1,473,762 | 632,548 | 133.0 | 4,688,065 | 2,682,522 | 74.8 | |
Net interest income | 310,679 | 880,310 | (64.7) | 1,755,398 | 2,850,367 | (38.4) | 402,291 | 900,913 | (55.3) | 2,016,711 | 2,918,937 | (30.9) | |
Fee and commission income | 30,820 | 69,862 | (55.9) | 129,156 | 189,929 | (32.0) | 33,924 | 85,427 | (60.3) | 136,861 | 201,058 | (31.9) | |
Fee and commission expenses | 2,188 | 11,764 | (81.4) | 19,205 | 38,587 | (50.2) | (2,821) | 7,942 | (135.5) | 1,432 | 21,359 | (93.3) | |
Net fee and commission income | 28,632 | 58,098 | (50.7) | 109,952 | 151,342 | (27.3) | 36,744 | 77,485 | (52.6) | 135,429 | 179,699 | (24.6) | |
Insurance premium income | - | - | - | - | - | - | 92,918 | 80,118 | 16.0 | 362,191 | 288,998 | 25.3 | |
Net claims and benefits | - | - | - | - | - | - | (75,895) | (40,946) | (85.4) | (310,003) | (137,982) | (124.7) | |
Net trading income | 1,144 | 46,133 | (97.5) | 2,255 | 44,281 | (94.9) | 1,144 | 46,133 | (97.5) | 2,255 | 44,281 | (94.9) | |
Net gain/(loss) on financial instruments at fair value through profit or loss | (59,249) | (30,639) | (93.4) | (132,131) | (23,435) | (463.8) | (60,374) | (27,238) | (121.7) | (139,460) | (20,085) | (594.4) | |
Other operating income | 27,450 | 116,074 | (76.4) | 92,229 | 234,335 | (60.6) | 69,343 | 81,011 | (14.4) | 198,182 | 204,143 | (2.9) | |
Total operating income | 308,655 | 1,069,975 | (71.2) | 1,827,703 | 3,256,890 | (43.9) | 466,171 | 1,117,476 | (58.3) | 2,265,303 | 3,477,991 | (34.9) | |
Impairment charge/(reversal) from loans and other losses | (106,635) | (235,970) | 54.8 | (16,505) | 74,450 | (122.2) | (106,635) | (235,970) | 54.8 | (16,505) | 74,450 | (122.2) | |
Net operating income | 415,290 | 1,305,946 | (68.2) | 1,844,208 | 3,182,440 | (42.1) | 572,806 | 1,353,446 | (57.7) | 2,281,808 | 3,403,541 | (33.0) | |
Personnel expenses | 322,309 | 325,221 | (0.9) | 1,333,267 | 1,200,450 | 11.1 | 375,529 | 363,570 | 3.3 | 1,527,073 | 1,360,993 | 12.2 | |
Depreciation and amortisation | 63,997 | 51,581 | 24.1 | 265,419 | 245,115 | 8.3 | 72,647 | 60,772 | 19.5 | 298,623 | 272,431 | 9.6 | |
Other operating expenses | 182,536 | 216,286 | (15.6) | 660,683 | 613,860 | 7.6 | 276,691 | 282,017 | (1.9) | 847,264 | 749,639 | 13.0 | |
Total operating expense | 568,842 | 593,088 | (4.1) | 2,259,370 | 2,059,425 | 9.7 | 724,867 | 706,358 | 2.6 | 2,672,960 | 2,383,063 | 12.2 | |
Profit/(loss) from operations | (153,552) | 712,858 | (121.5) | (415,162) | 1,123,015 | (137.0) | (152,062) | 647,088 | (123.5) | (391,152) | 1,020,478 | (138.3) | |
Impairment charge/(reversal) from investment in Subsidiary companies | - | - | - | 113,773 | 16,019 | 610.2 | - | - | - | - | - | - | |
Impairment charge/(reversal) from investment in Associate companies | - | - | - | - | - | - | - | - | - | - | - | - | |
Profit/(loss) from operations after impairment from subsidiary investments | (153,552) | 712,858 | (121.5) | (528,935) | 1,106,996 | (147.8) | (152,062) | 647,088 | (123.5) | (391,152) | 1,020,478 | (138.3) | |
Value added tax (VAT) on financial services | 37,115 | 129,043 | (71.2) | 123,868 | 294,268 | (57.9) | 37,115 | 129,043 | (71.2) | 123,868 | 294,268 | (57.9) | |
Social Security Contribution Levy (SSCL) | 4,110 | - | - | 4,110 | - | - | 4,110 | - | - | 4,110 | - | - | |
Share of associate companies profit/(loss) before tax | - | - | - | - | - | - | 10,851 | 34,042 | (68.1) | 58,161 | 109,490 | (46.9) | |
Profit/(loss) before income tax | (194,777) | 583,815 | (133.4) | (656,914) | 812,728 | (180.8) | (182,436) | 552,088 | (133.0) | (460,970) | 835,700 | (155.2) | |
Income tax expense/(reversal) | (120,062) | 236,811 | (150.7) | (161,306) | 283,684 | (156.9) | (117,024) | 290,402 | (140.3) | (144,992) | 358,399 | (140.5) | |
Profit/(loss) for the period | (74,715) | 347,004 | (121.5) | (495,607) | 529,044 | (193.7) | (65,412) | 261,686 | (125.0) | (315,977) | 477,301 | (166.2) | |
Profit/(loss) for the period attributable to: | |||||||||||||
Equity holders of the parent | (74,715) | 347,004 | (121.5) | (495,607) | 529,044 | (193.7) | (66,101) | 292,475 | (122.6) | (327,067) | 525,073 | (162.3) | |
Non controlling interests | - | - | - | - | - | - | 689 | (30,789) | 102.2 | 11,090 | (47,772) | 123.2 | |
Profit/(loss) for the period | (74,715) | 347,004 | (121.5) | (495,607) | 529,044 | (193.7) | (65,412) | 261,686 | (125.0) | (315,977) | 477,301 | (166.2) | |
Earnings per share: | |||||||||||||
Basic/Diluted earnings/(loss) per share (LKR) | (0.14) | 1.34 | (110.6) | (0.56) | 2.04 | (127.5) | (0.13) | 1.13 | (111.2) | (0.37) | 2.03 | (118.3) | |
Merchant Bank of Sri Lanka and Finance PLC
3
Merchant Bank of Sri Lanka & Finance PLC
Unaudited Statement of Comprehensive Income
Company
Quarter ended | Twelve months ended | ||||
12/31/2022 | 12/31/2021 | Change | 12/31/2022 | 12/31/2021 | Change |
(Unaudited) | (Audited) | % | (Unaudited) | (Audited) | % |
LKR '000 | LKR '000 | LKR '000 | LKR '000 |
Group
Quarter ended | Twelve months ended | ||||
12/31/2022 | 12/31/2021 | Change | 12/31/2022 | 12/31/2021 | Change |
(Unaudited) | (Audited) | % | (Unaudited) | (Audited) | % |
LKR '000 | LKR '000 | LKR '000 | LKR '000 |
Profit/(loss) for the period | (74,715) | 347,004 | (121.5) | (495,607) | 529,044 | (193.7) | (65,412) | 261,686 | (125.0) | (315,977) | 477,301 | (166.2) | |
Other comprehensive income/(expense) for the period | |||||||||||||
Actuarial gains/(losses) on defined benefit plans | (39,039) | 59,658 | (165.4) | 47,045 | 59,658 | (21.1) | (37,053) | 61,143 | (160.6) | 49,032 | 61,143 | (19.8) | |
Fair value reserves (Financial investments at fair value through other | |||||||||||||
comprehensive income): | |||||||||||||
Gains/(Losses) on re-measuring financial investments at fair value through other | |||||||||||||
comprehensive income | (2,747) | (23,467) | 88.3 | (10,735) | (22,217) | 51.7 | 45,215 | (26,741) | 269.1 | (10,440) | (31,139) | 66.5 | |
Recycling to the income statement for impairment | - | - | - | - | - | - | - | - | - | - | - | - | |
Share of associates companies' other comprehensive income | - | - | - | - | - | - | - | 632 | (100.0) | - | 632 | (100.0) | |
Other comprehensive income/(expense) before tax | (41,786) | 36,191 | (215.5) | 36,310 | 37,441 | (3.0) | 8,163 | 35,034 | (76.7) | 38,591 | 30,636 | 26.0 | |
Deferred tax (charge)/credit relating to components of other comprehensive income | 6,547 | (16,449) | 139.8 | (14,114) | (16,449) | 14.2 | 6,547 | (17,261) | 137.9 | (14,114) | (17,261) | 18.2 | |
Other comprehensive income/(expense) for the period, net of tax | (35,240) | 19,741 | (278.5) | 22,197 | 20,992 | 5.7 | 14,709 | 17,773 | (17.2) | 24,478 | 13,376 | 83.0 | |
Total comprehensive income/(expense) for the period, net of tax | (109,955) | 366,745 | (130.0) | (473,411) | 550,036 | (186.1) | (50,703) | 279,459 | (118.1) | (291,499) | 490,677 | (159.4) | |
Total comprehensive income/(expense) attributable to: | |||||||||||||
Equity holders of the parent | (109,955) | 366,745 | (130.0) | (473,411) | 550,036 | (186.1) | (74,463) | 311,074 | (123.9) | (303,643) | 541,884 | (156.0) | |
Non controlling interests | - | - | - | 0 | - | - | 23,760 | (31,615) | 175.2 | 12,144 | (51,207) | 123.7 | |
(109,955) | 366,745 | (130.0) | (473,411) | 550,036 | (186.1) | (50,703) | 279,459 | (118.1) | (291,499) | 490,677 | (159.4) | ||
Merchant Bank of Sri Lanka and Finance PLC
4
Merchant Bank of Sri Lanka & Finance PLC
Unaudited Statement of Financial Position
Company | Group | ||||||
as at | 12/31/2022 | 12/31/2021 | Change | 12/31/2022 | 12/31/2021 | Change | |
(Unaudited) | (Audited) | % | (Unaudited) | (Audited) | % | ||
LKR '000 | LKR '000 | LKR '000 | LKR '000 | ||||
Assets | |||||||
Cash and cash equivalents | 748,724 | 1,191,374 | (37.2) | 944,784 | 1,436,435 | (34.2) | |
Placements with banks & financial institutions | 103,682 | 246,166 | (57.9) | 137,162 | 535,292 | (74.4) | |
Financial investments at fair value through profit or loss | 287,510 | 341,547 | (15.8) | 293,847 | 355,214 | (17.3) | |
Loans & receivables at amortised cost | 24,423,300 | 28,184,638 | (13.3) | 24,370,850 | 28,016,693 | (13.0) | |
Financial investments at fair value through other | |||||||
comprehensive income | 15,863 | 1,989,169 | (99.2) | 78,151 | 3,415,338 | (97.7) | |
Financial investments at amortised cost | 4,307,394 | - | - | 5,883,995 | - | - | |
Real Estate Stock | 96,938 | 175,816 | (44.9) | 96,938 | 175,816 | (44.9) | |
Investment in associate company | 81,084 | 81,084 | - | 175,646 | 131,399 | 33.7 | |
Investment in subsidiary | 257,631 | 371,404 | (30.6) | - | - | - | |
Investment properties | 104,798 | 107,703 | (2.7) | 104,798 | 107,703 | (2.7) | |
Property, equipment and right-of-use assets | 504,669 | 607,185 | (16.9) | 637,969 | 742,708 | (14.1) | |
Intangible assets | 103,208 | 128,578 | (19.7) | 103,208 | 128,578 | (19.7) | |
Deferred tax Assets | 33,824 | - | - | 37,934 | 4,111 | 822.8 | |
Other assets | 163,157 | 852,795 | (80.9) | 542,929 | 1,220,370 | (55.5) | |
Total assets | 31,231,781 | 34,277,459 | (8.9) | 33,408,209 | 36,269,657 | (7.9) | |
Liabilities | |||||||
Due to banks | 2,925,953 | 4,116,812 | (28.9) | 2,935,170 | 4,133,305 | (29.0) | |
Due to customers at amortised cost | 23,524,609 | 22,267,862 | 5.6 | 23,354,493 | 22,201,604 | 5.2 | |
Debt issued and borrowed funds at amortised cost | 69,082 | 2,381,579 | (97.1) | 69,082 | 2,381,579 | (97.1) | |
Insurance provision - life | - | - | - | 355,190 | 416,634 | (14.7) | |
Insurance provision - non life | - | - | - | 662,773 | 511,538 | 29.6 | |
Current tax liabilities | 49,029 | 178,898 | (72.6) | 49,029 | 178,898 | (72.6) | |
Deferred tax liabilities | - | 78,301 | (100.0) | - | 78,301 | (100.0) | |
Other liabilities | 686,361 | 764,118 | (10.2) | 1,214,083 | 1,269,913 | (4.4) | |
Retirement benefits obligations | 281,203 | 320,934 | (12.4) | 292,326 | 332,724 | (12.1) | |
Total liabilities | 27,536,238 | 30,108,504 | (8.5) | 28,932,146 | 31,504,496 | (8.2) | |
Equity | |||||||
Stated capital | 4,276,448 | 4,276,448 | - | 4,276,448 | 4,276,448 | - | |
Retained earnings | (944,965) | (427,847) | (120.9) | (597,673) | (251,498) | (137.6) | |
OCI reserve | (30,377) | (19,642) | (54.7) | (33,368) | (23,860) | (39.8) | |
RLA Reserve | 54,441 | - | - | 54,441 | - | - | |
Statutory reserves | 339,996 | 339,996 | - | 339,996 | 339,996 | 0.0 | |
Total equity attributable to the parent | 3,695,543 | 4,168,955 | (11.4) | 4,039,844 | 4,341,086 | (6.9) | |
Non controlling interests | - | - | - | 436,219 | 424,075 | 2.9 | |
Total equity | 3,695,543 | 4,168,955 | (11.4) | 4,476,063 | 4,765,161 | (6.1) | |
Total liabilities and equity | 31,231,781 | 34,277,459 | (8.9) | 33,408,209 | 36,269,657 | (7.9) | |
Commitments and contingencies | 103,938 | 102,400 | 1.5 | 131,377 | 137,867 | (4.7) | |
Net assets value per share (LKR) | 7.05 | 16.08 | (56.2) | 7.70 | 8.28 | (6.9) |
These Financial Statements are in compliance with the requirements of the Companies Act No. 7 of 2007 | |
Mr. P. I. Kandanaarachchi | Mr. H. K. D. W. M. D. K. Hapuhinna |
Head of Finance | Chief Executive Officer |
The Board of Directors is responsible for the preparation and presentation of these Financial Statements. | |
Approved and signed for and on behalf of the Board | |
(sgd.) | (sgd.) |
Mr. A. M. A. Perera | Mr. J. D. V. N. Jayasinghe |
Director | Director |
Colombo, Sri Lanka | |
28/Feb/2023 |
Merchant Bank of Sri Lanka and Finance PLC
5
Merchant Bank of Sri Lanka & Finance PLC
Unaudited Statement of Changes in Equity
Stated | Statutory | OCI | RLA | Retained | Total | ||
capital | reserves | reserve | reserve | profits | equity | ||
Company | LKR ' 000 | LKR ' 000 | LKR ' 000 | LKR ' 000 | LKR ' 000 | LKR ' 000 | |
Balance as at 01st January 2021 | 2,124,457 | 234,613 | 2,575 | - | (893,794) | 1,467,851 | |
Net profit/(loss) for the period | - | - | - | - | 529,044 | 529,044 | |
Other comprehensive income | - | - | (22,217) | - | 43,209 | 20,992 | |
Issue of ordinary shares through right issue | 2,151,991 | - | - | - | - | 2,151,991 | |
Transaction cost related to rights issue | - | - | - | - | (923) | (923) | |
Transfers to statutory reserve fund | - | 105,383 | - | - | (105,383) | - | |
Balance as at 31st December 2021 | 4,276,448 | 339,996 | (19,642) | - | (427,847) | 4,168,955 | |
Balance as at 01st January 2022 | 4,276,448 | 339,996 | (19,642) | - | (427,848) | 4,168,955 | |
Net profit/(loss) for the period | - | - | - | - | (495,607) | (495,607) | |
Other comprehensive income | - | - | (10,735) | - | 32,931 | 22,196 | |
Transfer to regulatory loss allowance reserve (RLAR) | - | - | - | 54,441 | (54,441) | - | |
Transfers to statutory reserve fund | - | - | - | - | - | - | |
Balance as at 31st December 2022 | 4,276,448 | 339,996 | (30,377) | 54,441 | (944,965) | 3,695,543 | |
Stated | Statutory | OCI | RLA | Retained | Non controlling | Total | |
Capital | reserves | reserve | reserve | profits | interest | equity | |
Group | LKR ' 000 | LKR ' 000 | LKR ' 000 | LKR ' 000 | LKR ' 000 | LKR ' 000 | LKR ' 000 |
Balance as at 01st January 2021 | 2,124,457 | 234,613 | 3,157 | - | (714,093) | 475,282 | 2,123,416 |
Net profit/(loss) for the period | - | - | - | - | 525,073 | (47,772) | 477,301 |
Other comprehensive income | - | - | (27,017) | - | 43,828 | (3,435) | 13,376 |
Issue of ordinary shares through right issue | 2,151,991 | - | - | - | - | - | 2,151,991 |
Transaction cost related to rights issue | - | - | - | - | (923) | - | (923) |
Transfers to statutory reserve fund | - | 105,383 | - | - | (105,383) | - | - |
Balance as at 31st December 2021 | 4,276,448 | 339,996 | (23,860) | - | (251,498) | 424,075 | 4,765,161 |
Balance as at 01st January 2022 | 4,276,448 | 339,996 | (23,860) | - | (251,498) | 424,075 | 4,765,161 |
Net profit/(loss) for the period | - | - | - | - | (327,067) | 11,090 | (315,977) |
Prior year adjustment made to share of associate | |||||||
company profit | - | - | - | - | 2,401 | - | 2,401 |
Transfer to regulatory loss allowance reserve (RLAR) | - | - | - | 54,441 | (54,441) | - | - |
Other comprehensive income | - | - | (9,507) | - | 32,931 | 1,054 | 24,478 |
Transfers to statutory reserve fund | - | - | - | - | - | - | - |
Balance as at 31st December 2022 | 4,276,448 | 339,996 | (33,368) | 54,441 | (597,673) | 436,219 | 4,476,063 |
Merchant Bank of Sri Lanka and Finance PLC
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Merchant Bank of Sri Lanka & Finance plc published this content on 28 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 February 2023 11:29:12 UTC.
