UNAUDITED
FINANCIAL STATEMENTS
For the Period ended 30th September 2022
Rating ICRA " [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 | Nine months ended | ||||
9/30/2022 | 9/30/2021 | Change | 9/30/2022 | 9/30/2021 | Change |
(Unaudited) | (Unaudited) | % | (Unaudited) | (Unaudited) | % |
Group
Quarter ended | Nine months ended | ||||
9/30/2022 | 9/30/2021 | Change | 9/30/2022 | 9/30/2021 | Change |
(Unaudited) | (Unaudited) | % | (Unaudited) | (Unaudited) | % |
LKR '000 | LKR '000 | LKR '000 | LKR '000 | LKR '000 | LKR '000 | LKR '000 | LKR '000 | ||||||
Income | 1,818,157 | 1,408,870 | 29.1 | 4,752,684 | 4,259,184 | 11.6 | 2,073,630 | 1,500,886 | 38.2 | 5,251,796 | 4,520,941 | 16.2 | |
Interest and similar income | 1,657,202 | 1,301,920 | 27.3 | 4,661,339 | 4,015,504 | 16.1 | 1,742,512 | 1,318,937 | 32.1 | 4,828,723 | 4,067,998 | 18.7 | |
Interest and similar expenses | 1,430,997 | 658,991 | 117.1 | 3,216,620 | 2,045,447 | 57.3 | 1,425,468 | 661,448 | 115.5 | 3,214,302 | 2,049,974 | 56.8 | |
Net interest income | 226,205 | 642,929 | (64.8) | 1,444,719 | 1,970,057 | (26.7) | 317,044 | 657,489 | (51.8) | 1,614,420 | 2,018,024 | (20.0) | |
Fee and commission income | 26,702 | 45,540 | (41.4) | 98,337 | 120,068 | (18.1) | 33,048 | 44,121 | (25.1) | 102,937 | 115,631 | (11.0) | |
Fee and commission expenses | 1,171 | 7,885 | (85.1) | 17,017 | 26,824 | (36.6) | (2,583) | 3,092 | (183.5) | 4,253 | 13,417 | (68.3) | |
Net fee and commission income | 25,531 | 37,655 | (32.2) | 81,320 | 93,244 | (12.8) | 35,630 | 41,029 | (13.2) | 98,684 | 102,214 | (3.5) | |
Insurance premium income | - | - | - | - | - | - | 100,459 | 75,398 | 33.2 | 269,272 | 208,880 | 28.9 | |
Net claims and benefits | - | - | - | - | - | - | (80,817) | (30,627) | (163.9) | (234,108) | (97,036) | (141.3) | |
Net trading income | 16,083 | (23,267) | 169.1 | 1,110 | (1,852) | 160.0 | 16,083 | (23,267) | 169.1 | 1,110 | (1,852) | 160.0 | |
Net gain/(loss) on financial instruments at fair value through profit or loss | 97,333 | 36,073 | 169.8 | (72,881) | 7,204 | (1,111.7) | 98,929 | 36,584 | 170.4 | (79,086) | 7,154 | (1,205.5) | |
Other operating income | 20,838 | 48,604 | (57.1) | 64,779 | 118,261 | (45.2) | 82,599 | 49,113 | 68.2 | 128,839 | 123,131 | 4.6 | |
Total operating income | 385,989 | 741,994 | (48.0) | 1,519,048 | 2,186,913 | (30.5) | 569,927 | 805,719 | (29.3) | 1,799,132 | 2,360,514 | (23.8) | |
Impairment charge/(reversal) from loans and other losses | (104,927) | 162,669 | (164.5) | 90,130 | 310,420 | (71.0) | (104,927) | 162,669 | (164.5) | 90,130 | 310,420 | (71.0) | |
Net operating income | 490,917 | 579,325 | (15.3) | 1,428,918 | 1,876,493 | (23.9) | 674,854 | 643,050 | 4.9 | 1,709,002 | 2,050,094 | (16.6) | |
Personnel expenses | 317,458 | 289,376 | 9.7 | 1,010,958 | 875,229 | 15.5 | 367,657 | 330,922 | 11.1 | 1,151,544 | 997,424 | 15.5 | |
Depreciation and amortisation | 64,619 | 53,066 | 21.8 | 201,422 | 193,534 | 4.1 | 73,477 | 59,592 | 23.3 | 225,976 | 211,659 | 6.8 | |
Other operating expenses | 156,044 | 123,104 | 26.8 | 478,148 | 397,575 | 20.3 | 263,283 | 152,927 | 72.2 | 570,572 | 467,622 | 22.0 | |
Total operating expense | 538,121 | 465,545 | 15.6 | 1,690,527 | 1,466,337 | 15.3 | 704,417 | 543,441 | 29.6 | 1,948,093 | 1,676,705 | 16.2 | |
Profit/(loss) from operations | (47,205) | 113,780 | (141.5) | (261,610) | 410,156 | (163.8) | (29,563) | 99,610 | (129.7) | (239,090) | 373,389 | (164.0) | |
Impairment charge/(reversal) from investment in Subsidiary companies | 8,429 | 1,074 | 684.7 | 113,773 | 16,019 | 610.2 | - | - | - | - | - | - | |
Impairment charge/(reversal) from investment in Associate companies | - | - | - | - | - | - | - | - | - | - | - | - | |
Profit/(loss) from operations after impairment from subsidiary investments | (55,633) | 112,706 | (149.4) | (375,383) | 394,137 | (195.2) | (29,563) | 99,610 | (129.7) | (239,090) | 373,389 | (164.0) | |
Value added tax (VAT) & Nation building tax (NBT) on financial services | 24,399 | 52,597 | (53.6) | 86,753 | 165,225 | (47.5) | 24,399 | 52,597 | (53.6) | 86,753 | 165,225 | (47.5) | |
Share of associate companies profit/(loss) before tax | - | - | - | - | - | - | 21,016 | 33,547 | (37.4) | 47,310 | 75,448 | (37.3) | |
Profit/(loss) before income tax | (80,033) | 60,109 | (233.1) | (462,136) | 228,912 | (301.9) | (32,946) | 80,560 | (140.9) | (278,534) | 283,612 | (198.2) | |
Income tax expense/(reversal) | (43,436) | 18,350 | (336.7) | (41,244) | 46,872 | (188.0) | (37,552) | 27,744 | (235.4) | (27,969) | 67,997 | (141.1) | |
Profit/(loss) for the period | (36,596) | 41,758 | (187.6) | (420,892) | 182,041 | (331.2) | 4,606 | 52,816 | (91.3) | (250,565) | 215,615 | (216.2) | |
Profit/(loss) for the period attributable to: | |||||||||||||
Equity holders of the parent | (36,596) | 41,758 | (187.6) | (420,892) | 182,041 | (331.2) | (3,543) | 59,361 | (106.0) | (260,967) | 232,597 | (212.2) | |
Non controlling interests | - | - | - | - | - | - | 8,149 | (6,545) | 224.5 | 10,402 | (16,983) | 161.2 | |
Profit/(loss) for the period | (36,596) | 41,758 | (187.6) | (420,892) | 182,041 | (331.2) | 4,606 | 52,816 | (91.3) | (250,565) | 215,615 | (216.2) | |
Earnings per share: | |||||||||||||
Basic/Diluted earnings/(loss) per share (LKR) | (0.07) | 0.25 | (128.2) | (0.48) | 1.08 | (144.2) | (0.01) | 0.35 | (101.9) | (0.30) | 1.38 | (121.4) | |
Merchant Bank of Sri Lanka and Finance PLC
3
Merchant Bank of Sri Lanka & Finance PLC
Unaudited Statement of Comprehensive Income
Company
Quarter ended | Nine months ended | ||||
9/30/2022 | 9/30/2021 | Change | 9/30/2022 | 9/30/2021 | Change |
(Unaudited) | (Unaudited) | % | (Unaudited) | (Unaudited) | % |
Group
Quarter ended | Nine months ended | ||||
9/30/2022 | 9/30/2021 | Change | 9/30/2022 | 9/30/2021 | Change |
(Unaudited) | (Unaudited) | % | (Unaudited) | (Unaudited) | % |
LKR '000 | LKR '000 | LKR '000 | LKR '000 | LKR '000 | LKR '000 | LKR '000 | LKR '000 | ||||||
Profit/(loss) for the period | (36,596) | 41,758 | (187.6) | (420,892) | 182,041 | (331.2) | 4,606 | 52,816 | (91.3) | (250,565) | 215,615 | (216.2) | |
Other comprehensive income/(expense) for the period | |||||||||||||
Actuarial gains/(losses) on defined benefit plans | - | - | - | 86,084 | - | - | - | - | - | 86,084 | - | - | |
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 | - | 1,250 | (100.0) | (7,988) | 1,250 | (739.0) | (45,626) | (2,442) | (1,768.0) | (55,655) | (4,398) | (1,165.6) | |
Other comprehensive income/(expense) before tax | - | 1,250 | (100.0) | 78,096 | 1,250 | 6,147.7 | (45,626) | (2,442) | (1,768.0) | 30,429 | (4,398) | 792.0 | |
Deferred tax (charge)/credit relating to components of other comprehensive income | (41,321) | - | - | (20,660) | - | - | (41,321) | - | - | (20,660) | - | - | |
Other comprehensive income/(expense) for the period, net of tax | (41,321) | 1,250 | (3,405.6) | 57,436 | 1,250 | 4,494.9 | (86,947) | (2,442) | (3,459.8) | 9,769 | (4,398) | 322.1 | |
Total comprehensive income/(expense) for the period, net of tax | (77,917) | 43,008 | (281.2) | (363,456) | 183,291 | (298.3) | (82,340) | 50,374 | (263.5) | (240,797) | 211,217 | (214.0) | |
Total comprehensive income/(expense) attributable to: | |||||||||||||
Equity holders of the parent | (77,917) | 43,008 | (281.2) | (363,456) | 183,291 | (298.3) | (69,415) | 58,624 | (218.4) | (229,181) | 230,808 | (199.3) | |
Non controlling interests | - | - | - | 0 | - | - | (12,926) | (8,251) | (56.7) | (11,616) | (19,591) | 40.7 | |
(77,917) | 43,008 | (281.2) | (363,456) | 183,291 | (298.3) | (82,340) | 50,374 | (263.5) | (240,797) | 211,217 | (214.0) | ||
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 | 9/30/2022 | 12/31/2021 | Change | 9/30/2022 | 12/31/2021 | Change | |
(Unaudited) | (Audited) | % | (Unaudited) | (Audited) | % | ||
LKR '000 | LKR '000 | LKR '000 | LKR '000 | ||||
Assets | |||||||
Cash and cash equivalents | 521,436 | 1,191,374 | (56.2) | 735,876 | 1,436,435 | (48.8) | |
Placements with banks & financial institutions | 105,639 | 246,166 | (57.1) | 150,463 | 535,292 | (71.9) | |
Financial investments at fair value through profit or loss | 330,346 | 341,547 | (3.3) | 337,808 | 355,214 | (4.9) | |
Loans & receivables at amortised cost | 28,672,857 | 28,184,638 | 1.7 | 28,588,854 | 28,016,693 | 2.0 | |
Financial investments at fair value through other | |||||||
comprehensive income | 18,610 | 1,989,169 | (99.1) | 1,645,066 | 3,415,338 | (51.8) | |
Financial investments at amortised cost | 4,225,170 | - | - | 4,225,170 | - | - | |
Real Estate Stock | 110,573 | 175,816 | (37.1) | 110,573 | 175,816 | (37.1) | |
Investment in associate company | 81,084 | 81,084 | - | 167,834 | 131,399 | 27.7 | |
Investment in subsidiary | 257,631 | 371,404 | (30.6) | - | - | - | |
Investment properties | 105,524 | 107,704 | (2.0) | 105,524 | 107,703 | (2.0) | |
Property, equipment and right-of-use assets | 535,085 | 607,185 | (11.9) | 671,354 | 742,708 | (9.6) | |
Intangible assets | 101,086 | 128,578 | (21.4) | 101,086 | 128,578 | (21.4) | |
Deferred tax Assets | - | - | - | 4,111 | 4,111 | (0.0) | |
Other assets | 201,341 | 852,795 | (76.4) | 509,316 | 1,220,370 | (58.3) | |
Total assets | 35,266,382 | 34,277,459 | 2.9 | 37,353,036 | 36,269,656 | 3.0 | |
Liabilities | |||||||
Due to banks | 4,363,590 | 4,116,812 | 6.0 | 4,371,105 | 4,133,305 | 5.8 | |
Due to customers at amortised cost | 25,778,274 | 22,267,862 | 15.8 | 25,618,268 | 22,201,604 | 15.4 | |
Debt issued and borrowed funds at amortised cost | 25,883 | 2,381,579 | (98.9) | 112,543 | 2,381,579 | (95.3) | |
Insurance provision - life | - | - | - | 347,147 | 416,634 | (16.7) | |
Insurance provision - non life | - | - | - | 669,701 | 511,538 | 30.9 | |
Current tax liabilities | 84,097 | 178,898 | (53.0) | 84,097 | 178,898 | (53.0) | |
Deferred tax liabilities | 57,717 | 78,301 | (26.3) | 57,717 | 78,301 | (26.3) | |
Other liabilities | 909,199 | 764,118 | 19.0 | 1,308,386 | 1,269,913 | 3.0 | |
Retirement benefits obligations | 242,124 | 320,934 | (24.6) | 257,305 | 332,724 | (22.7) | |
Total liabilities | 31,460,884 | 30,108,504 | 4.5 | 32,826,270 | 31,504,496 | 4.2 | |
Equity | |||||||
Stated capital | 4,276,448 | 4,276,448 | - | 4,276,448 | 4,276,448 | - | |
Retained earnings | (783,315) | (427,847) | (83.1) | (444,639) | (251,498) | (76.8) | |
OCI reserve | (27,630) | (19,642) | (40.7) | (57,498) | (23,860) | (141.0) | |
Statutory reserves | 339,996 | 339,996 | - | 339,996 | 339,996 | 0.0 | |
Total equity attributable to the parent | 3,805,499 | 4,168,955 | (8.7) | 4,114,307 | 4,341,086 | (5.2) | |
Non controlling interests | - | - | - | 412,459 | 424,075 | (2.7) | |
Total equity | 3,805,499 | 4,168,955 | (8.7) | 4,526,766 | 4,765,161 | (5.0) | |
Total liabilities and equity | 35,266,382 | 34,277,459 | 2.9 | 37,353,036 | 36,269,656 | 3.0 | |
Commitments and contingencies | 107,300 | 124,250 | (13.6) | 147,880 | 190,086 | (22.2) | |
Net assets value per share (LKR) | 7.25 | 7.95 | (8.7) | 7.84 | 8.28 | (5.2) |
These Financial Statements are in compliance with the requirements of the Companies Act No. 7 of 2007 | |
(sgd.) | (sgd.) |
P. I. Kandanaarachchi | 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. M. P. R. Kumara |
Director | Director |
Colombo, Sri Lanka | |
09/Nov/2022 |
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 | Retained | Total | ||
capital | reserves | reserve | profits | equity | ||
Company | 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 | - | - | - | 182,041 | 182,041 | |
Other comprehensive income | - | - | 1,250 | - | 1,250 | |
Issue of ordinary shares through right issue | 2,151,991 | - | - | - | 2,151,991 | |
Transaction cost related to rights issue | - | - | - | (923) | (923) | |
Balance as at 30th September 2021 | 4,276,448 | 234,613 | 3,825 | (712,676) | 3,802,210 | |
Balance as at 01st January 2022 | 4,276,448 | 339,996 | (19,642) | (427,847) | 4,168,955 | |
Net profit/(loss) for the period | - | - | - | (420,892) | (420,892) | |
Other comprehensive income | - | - | (7,988) | 65,424 | 57,436 | |
Balance as at 30th September 2022 | 4,276,448 | 339,996 | (27,630) | (783,315) | 3,805,499 | |
Stated | Statutory | OCI | Retained | Non controlling | Total | |
Capital | reserves | reserve | profits | interest | equity | |
Group | 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 | - | - | - | 232,597 | (16,983) | 215,614 |
Other comprehensive income | - | - | (1,789) | - | (2,609) | (4,398) |
Issue of ordinary shares through right issue | 2,151,991 | - | - | - | - | 2,151,991 |
Transaction cost related to rights issue | - | - | - | (923) | - | (923) |
Balance as at 30th September 2021 | 4,276,448 | 234,613 | 1,368 | (482,419) | 455,690 | 4,485,700 |
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 | - | - | - | (260,967) | 10,402 | (250,565) |
Prior year adjustment made to share of associate company profit | - | - | - | 2,401 | - | 2,401 |
Other comprehensive income | - | - | (33,638) | 65,424 | (22,018) | 9,769 |
Balance as at 30th September 2022 | 4,276,448 | 339,996 | (57,498) | (444,639) | 412,459 | 4,526,766 |
Merchant Bank of Sri Lanka and Finance PLC
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Merchant Bank of Sri Lanka & Finance plc published this content on 10 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 November 2022 11:27:05 UTC.