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(As per Banking Act Direction No. 01 of 2016)
Disclosure 1
Key Regulatory Ratios – Capital and Liquidity
Item
31 December 2025
31 December 2024
Bank
Group
Bank
Group
Regulatory capital (LKR ’000)
Common equity Tier 1
68,302,317
68,840,059
52,485,838
57,804,406
Tier 1 capital
68,302,317
68,840,059
52,485,838
57,804,406
Total capital
80,318,596
80,869,103
66,693,851
72,021,286
Regulatory capital ratios (%)
Common equity Tier 1 capital ratio
(Minimum requirement – 7.00%)
13.55
13.61
12.40
13.61
Tier 1 capital ratio
(Minimum requirement – 8.50%)
13.55
13.61
12.40
13.61
Total capital ratio
(Minimum requirement – 12.50%)
15.93
15.99
15.76
16.96
Leverage Ratio
(Minimum Requirement – 3%)
7.40
7.46
7.33
8.03
Regulatory Liquidity
Total Stock of High Quality Liquid Assets
(LKR ’000)
129,174,824
N/A
189,840,978
N/A
Liquidity coverage ratio – Rupee
(Minimum requirement: 100%) (%)
190.90
N/A
310.01
N/A
Liquidity coverage ratio – All currency
(Minimum requirement: 100%) (%)
184.06
N/A
280.26
N/A
Net stable funding ratio
(Minimum requirement: 100%) (%)
122.64
N/A
124.60
N/A
Disclosure 2
Basel III Computation of Capital Ratios
Item
31 December 2025
31 December 2024
Bank
LKR ’000
Group
LKR ’000
Bank
LKR ’000
Group
LKR ’000
Common equity Tier 1 (CET1)
capital after adjustments
68,302,317
68,840,059
52,485,838
57,804,406
Common equity Tier 1 (CET1) capital
86,605,232
88,474,933
71,009,611
77,842,985
Equity capital (stated capital)/assigned capital
15,445,973
15,445,973
14,710,454
14,710,454
Reserve fund
4,459,968
4,459,968
3,657,968
3,657,968
Published retained earnings/
(accumulated retained losses)
50,291,230
52,160,931
35,834,730
42,668,104
Published accumulated Other
Comprehensive Income (OCI)
2,628,222
2,628,222
3,026,620
3,026,620
General and other disclosed reserves
13,779,839
13,779,839
13,779,839
13,779,839
Unpublished current year's profit/loss and gains reflected in OCI
–
–
–
–
Ordinary shares issued by consolidated banking and financial subsidiaries of the Bank and held by third parties
–
–
–
–
Total adjustments to CET1 capital
18,302,915
19,634,874
18,523,773
20,038,579
Goodwill (net)
–
156,226
–
156,226
Intangible assets (net)
2,608,324
2,629,334
2,001,636
2,013,975
Significant investments in the capital of financial institutions
where the bank owns more than 10% of the issued ordinary
share capital of the entity
9,614,906
10,756,150
11,180,665
12,507,386
Others
6,079,685
6,093,164
5,341,472
5,360,992
Additional Tier 1 (AT1) capital
after adjustments
–
–
–
–
Additional Tier 1 (AT1) capital
–
–
–
–
Qualifying additional Tier 1 capital instruments
–
–
–
–
Instruments issued by consolidated banking
and financial subsidiaries of the Bank
and held by third parties
–
–
–
–
Total Adjustments to AT1 capital
–
–
–
–
Investment in own shares
–
–
–
–
Others
–
–
–
–
Tier 2 capital after adjustments
12,016,278
12,029,043
14,208,013
14,216,880
Tier 2 capital
12,046,811
12,058,079
14,208,013
14,216,880
Qualifying Tier 2 capital instruments
6,492,954
6,492,954
9,803,906
9,803,906
Revaluation gains
–
–
–
–
Eligible impairment
5,553,857
5,565,125
4,404,107
4,412,974
Instruments issued by consolidated banking and financial subsidiaries of the Bank and held by third parties
–
–
–
–
Total adjustments to Tier 2
30,533
29,036
–
–
Investment in own shares
–
–
–
–
Investments in financial institutions where the Bank
holds 10% or less of the voting share capital
30,533
29,036
–
–
CET1 capital
68,302,317
68,840,059
52,485,838
57,804,406
Total Tier 1 capital
68,302,317
68,840,059
52,485,838
57,804,406
Total capital
80,318,596
80,869,103
66,693,851
72,021,286
Total risk weighted assets (RWA)
504,089,106
505,794,586
423,201,054
424,683,050
RWAs for credit risk
444,308,578
445,210,025
352,328,550
353,037,904
RWAs for market risk
13,569,552
13,569,552
27,403,720
27,403,720
RWAs for operational risk
46,210,976
47,015,009
43,468,784
44,241,426
CET1 capital ratio (including capital conservation buffer, countercyclical capital buffer and surcharge on D-SIBs) (%)
13.55
13.61
12.40
13.61
of which: capital conservation buffer (%)
2.50
2.50
2.50
2.50
of which: countercyclical buffer (%)
N/A
N/A
N/A
N/A
of which: capital surcharge on D-SIBs (%)
N/A
N/A
N/A
N/A
Total Tier 1 capital ratio (%)
13.55
13.61
12.40
13.61
Total capital ratio (including capital conservation buffer, countercyclical capital buffer and surcharge on d-sibs) (%)
15.93
15.99
15.76
16.96
of which: capital conservation buffer (%)
2.50
2.50
2.50
2.50
of which: countercyclical buffer (%)
N/A
N/A
N/A
N/A
of which: capital surcharge on D-SIBs (%)
N/A
N/A
N/A
N/A
Disclosure 3
Leverage ratio
Item
31 December 2025
31 December 2024
Bank
LKR ’000
Group
LKR ’000
Bank
LKR ’000
Group
LKR ’000
Tier 1 Capital
68,302,317
68,840,059
52,485,838
57,804,406
Total Exposures
923,312,836
922,889,467
715,921,306
720,097,361
On-Balance Sheet Items
(excluding securities financing transactions,
but including collateral)
826,556,388
826,133,019
672,489,151
676,665,206
Derivative Exposures
16,191,202
16,191,202
16,753,173
16,753,173
Securities Financing Transaction Exposures
3,606,877
3,606,877
2,851,459
2,851,459
Other Off-Balance Sheet Exposures
76,958,370
76,958,370
23,827,523
23,827,523
Basel III leverage ratio
(Minimum requirement – 3%) (%)
7.40
7.46
7.33
8.03
Disclosure 4
Liquidity Coverage Ratio (LCR) – All Currencies
Item
Amount (LKR ’000)
31 December 2025
31 December 2024
Total
un-weighted
value
Total
weighted
value
Total
un-weighted
value
Total
weighted
value
Total stock of High-Quality Liquid Assets (HQLA)
129,656,833
129,174,824
190,863,719
189,840,978
Total adjusted level 1A assets
128,692,815
128,692,815
188,818,237
188,818,237
Level 1 assets
128,692,815
128,692,815
188,818,237
188,818,237
Total adjusted level 2A assets
–
–
–
–
Level 2A assets
–
–
–
–
Total adjusted level 2B assets
964,018
482,009
2,045,482
1,022,741
Level 2B assets
964,018
482,009
2,045,482
1,022,741
Total cash outflows
798,477,615
147,998,299
605,544,252
107,121,287
Deposits
359,357,923
33,230,233
327,258,102
28,901,213
Unsecured wholesale funding
205,982,011
97,933,572
134,877,080
64,457,610
Secured funding transactions
39,209,228
–
25,427,972
–
Undrawn portion of committed (irrevocable) facilities and other
contingent funding obligations
190,184,038
13,090,079
112,674,385
8,455,751
Additional requirements
3,744,415
3,744,415
5,306,713
5,306,713
Total cash inflows
91,251,927
77,818,957
59,200,684
39,384,729
Maturing secured lending transactions backed by collateral
42,110,847
40,153,408
25,763,891
18,588,160
Committed facilities
–
–
–
–
Other inflows by counterparty which are maturing within 30 Days
39,298,469
36,335,682
28,461,057
19,479,105
Operational deposits
7,382,001
–
2,435,145
–
Other cash inflows
2,460,610
1,329,867
2,540,591
1,317,464
Liquidity coverage Ratio (%) (Stock of high quality liquid assets/Total Net Cash Outflows over the next 30 calendar days) *100 (Minimum requirement – 100%)
184.06
280.26
Liquidity coverage ratio (LCR) – LKR Only
Item
Amount (LKR ’000)
31 December 2025
31 December 2024
Total
un-weighted
value
Total
weighted
value
Total
un-weighted
value
Total
weighted
value
Total stock of High-Quality Liquid Assets (HQLA)
127,860,612
127,378,603
190,127,663
189,104,922
Total adjusted level 1A assets
126,896,594
126,896,594
188,082,181
188,082,181
Level 1 assets
126,896,594
126,896,594
188,082,181
188,082,181
Total adjusted level 2A assets
–
–
–
–
Level 2A assets
–
–
–
–
Total adjusted level 2B assets
964,018
482,009
2,045,482
1,022,741
Level 2B assets
964,018
482,009
2,045,482
1,022,741
Total cash outflows
626,987,179
126,592,159
485,610,838
94,439,394
Deposits
311,962,443
28,490,685
285,736,836
24,827,049
Unsecured wholesale funding
112,644,822
55,582,937
70,754,099
37,379,639
Secured funding transactions
39,209,228
–
25,427,973
–
Undrawn portion of committed (irrevocable) facilities and other contingent funding obligations
130,087,001
9,434,852
77,536,349
6,077,125
Additional requirements
33,083,685
33,083,685
26,155,581
26,155,581
Total cash inflows
65,730,310
59,866,908
49,098,640
33,438,991
Maturing secured lending transactions backed by collateral
37,688,920
35,731,481
23,232,211
16,056,481
Committed facilities
–
–
–
–
Other inflows by counterparty which are maturing within 30 Days
18,929,407
16,154,188
17,660,717
10,399,925
Operational deposits
–
–
–
–
Other cash inflows
9,111,983
7,981,239
8,205,712
6,982,585
Liquidity coverage Ratio (%) (Stock of high quality liquid assets/total net cash outflows over the next 30 calendar days) *100 (Minimum requirement – 100%)
190.90
310.01
Disclosure 5
Net stable funding ratio (NSFR)
Item
31 December 2025
31 December 2024
Bank
LKR ’000
Group
LKR ’000
Bank
LKR ’000
Group
LKR ’000
Total available stable funding (ASF)
564,606,617
N/A
488,990,770
N/A
Total required stable funding (RSF)
Required stable funding-On balance sheets assets
452,533,367
N/A
386,813,051
N/A
Required stable funding-Off balance sheet assets
7,859,291
N/A
5,633,720
N/A
Total required stable funding
460,392,658
N/A
392,446,771
N/A
NSFR (Minimum requirement – 100%) (%)
122.64
N/A
124.60
N/A
Disclosure 6
Main features of regulatory capital instruments
Description of the Capital Instrument
(Bank Only)
Stated Capital
Subordinated Term-debt
(2020 – Type B)
Subordinated Term-debt
(2024 – Type A)
Subordinated Term-debt
(2024 – Type B)
Issuer
DFCC Bank PLC
DFCC Bank PLC
DFCC Bank PLC
DFCC Bank PLC
Unique Identifier (e.g., ISIN or Bloomberg identifier for private placement)
LK0055N00000
C-2457
C-2523
C-2524
Governing Law(s) of the Instrument
Sri Lanka
Sri Lanka
Sri Lanka
Sri Lanka
Original date of issuance
N/A
23 October 2020
16 January 2024
16 January 2024
Par value of instrument (LKR)
100
100
100
Perpetual or dated
Perpetual
Dated
Dated
Dated
Original maturity date, if applicable
N/A
23 October 2027
16 January 2029
16 January 2031
Amount recognised in regulatory capital
(in LKR ’000 as at 31 December 2025)
15,445,973
205,000
7,945,230
54,770
Accounting classification (Equity/liability)
Equity
Liability
Liability
Liability
Issuer call subject to prior supervisory approval
Optional call date, contingent call dates and redemption amount (LKR ’000)
N/A
N/A
N/A
N/A
Subsequent call dates, if applicable
N/A
N/A
N/A
N/A
Coupons/dividends
Fixed or floating dividend/coupon
Floating dividend
Fixed coupon
Fixed coupon
Fixed coupon
Coupon rate and any related index (%)
N/A
9.25% p.a
15.25% p.a
14.75% p.a
Non-cumulative or cumulative
Non-cumulative
Non-Cumulative
Non-Cumulative
Non-Cumulative
Convertible or non-convertible
Non-convertible
Convertible
Convertible
Convertible
If Convertible, conversion trigger (s)
N/A
Determined by and at the sole discretion of the Monetary Board of the Central Bank of Sri Lanka, and is defined in the Banking Act Direction No. 1 of 2016
Determined by and at the sole discretion of the Monetary Board of the Central Bank of Sri Lanka, and is defined in the Banking Act Direction No. 1 of 2016
Determined by and at the sole discretion of the Monetary Board of the Central Bank of Sri Lanka, and is defined in the Banking Act Direction No. 1 of 2016
If Convertible, fully or partially
N/A
Fully
Fully
Fully
If Convertible, mandatory or optional
N/A
Mandatory
Mandatory
Mandatory
If Convertible, conversion rate
N/A
Based on the simple average of the daily Volume Weighted Average Price (VWAP) of an ordinary voting shares during the three months (0-3) period, immediately preceding the date of the Trigger Event
Based on the simple average of the daily Volume Weighted Average Price (VWAP) of an ordinary voting shares during the three months (0-3) period, immediately preceding the date of the Trigger Event
Based on the simple average of the daily Volume Weighted Average Price (VWAP) of an ordinary voting shares during the three months (0-3) period, immediately preceding the date of the Trigger Event
Disclosure 7
Summary discussion on adequacy/meeting current and future capital requirements
The Bank’s capital planning framework ensures that it maintains adequate capital to support current and future business activities, absorb unexpected losses, and comply with regulatory requirements. Under Basel III’s Pillar II (Supervisory Review Process – SRP), the Bank has implemented an Internal Capital Adequacy Assessment Process (ICAAP) to assess capital adequacy in line with its risk profile and strategic objectives. The ICAAP integrates risk management with capital planning, utilising both regulatory capital calculations (Pillar I) and economic capital assessments (Pillar II) to cover all material risks. The Bank applies a combination of quantitative and qualitative assessment methods, ensuring a comprehensive evaluation of risk exposures, including credit, market, operational, concentration, liquidity, interest rate, reputational, and strategic risks. This forward-looking approach aligns capital requirements with the Bank’s risk appetite and business expansion plans.
Capital forecasting is conducted over a three-year horizon, considering projected business growth, macroeconomic conditions, and potential stress scenarios. The Bank ensures capital adequacy through internal sources such as retained earnings and profit reinvestment, while also evaluating external sources, including equity issuance and subordinated debt, as needed. Anticipated capital expenditure is factored into capital planning to support business expansion and regulatory compliance. Stress testing is a key component of the ICAAP, enabling the Bank to assess the resilience of its capital position under adverse conditions and proactively manage emerging risks. Regular reviews of risk-weighted assets and capital buffers ensure alignment with evolving regulatory and business requirements.
To address unexpected capital shortfalls or market disruptions, the Bank has a contingency plan that includes raising additional capital, restricting business activities, or deploying risk mitigation techniques. Senior Management actively participates in the capital planning process, ensuring that strategic objectives, risk management frameworks, and capital requirements are well integrated. This disciplined approach enhances the Bank’s financial stability and ensures that it maintains a sufficient capital buffer to absorb potential losses while pursuing sustainable growth.
Refer to the Capital Adequacy Management Section on page 263 of the Annual Report.
Disclosure 8
Credit Risk under Standardised Approach – Credit Risk Exposures and Credit Risk Mitigation (CRM) Effects
Asset class
Amount (LKR ’000) as at 31 December 2025
Exposures before Credit
Conversion Factor (CCF) and CRM
Exposures post
CCF and CRM
RWA and
RWA density (%)
On-balance
sheet amount
LKR ’000
Off-balance
sheet amount
LKR ’000
On-balance
sheet amount
LKR ’000
Off-balance
sheet amount
LKR ’000
RWA
LKR ’000
RWA
Density(ii)
%
Bank
Claims on Central
Government and CBSL
231,828,365
66,961,419
231,828,365
3,139,317
1,094,688
0%
Claims on foreign sovereigns
and their Central Banks
1,569,429
–
1,569,429
–
313,886
20%
Claims on public sector entities
7,447,993
–
–
–
–
0%
Claims on official entities and multilateral development banks
–
–
–
–
–
0%
Claims on banks exposures
32,072,501
59,831,282
32,072,501
1,985,633
12,204,650
36%
Claims on financial institutions
16,128,090
1,429,902
16,128,090
268,598
9,396,774
57%
Claims on corporates
234,682,572
61,008,939
178,004,156
25,608,088
192,942,973
95%
Retail claims
171,816,231
15,438,636
171,816,231
8,949,721
125,187,563
69%
Claims secured by
residential property
19,809,510
–
19,809,510
–
6,933,329
35%
Claims secured by
commercial real estate
44,016,700
–
44,016,700
–
44,016,700
100%
Non-performing assets (NPAs)
33,102,561
–
33,102,561
–
37,573,402
114%
Higher-risk categories
776,053
–
776,053
–
1,940,132
250%
Cash items and other assets
27,662,795
110,945,645
27,662,795
–
12,704,481
46%
Total
820,912,800
315,615,823
756,786,391
39,951,357
444,308,578
Group
Claims on Central
Government and CBSL
231,837,662
66,961,419
231,837,662
3,139,317
1,094,688
0%
Claims on foreign sovereigns
and their Central Banks
1,569,429
–
1,569,429
–
313,886
20%
Claims on public sector entities
7,447,993
–
–
–
–
0%
Claims on official entities and multilateral development banks
–
–
–
–
–
0%
Claims on banks exposures
32,072,501
59,831,282
32,072,501
1,985,633
12,204,650
36%
Claims on financial institutions
16,144,880
1,429,902
16,144,880
268,598
9,405,169
57%
Claims on corporates
234,445,537
61,008,939
177,767,121
25,608,088
192,705,938
95%
Retail claims
171,816,231
15,438,636
171,816,231
8,949,721
125,187,563
69%
Claims secured by
residential property
19,809,510
–
19,809,510
–
6,933,329
35%
Claims secured by
commercial real estate
44,016,700
–
44,016,700
–
44,016,700
100%
Non-performing assets (NPAs)
33,102,561
–
33,102,561
–
37,573,402
114%
Higher-risk categories
792,996
–
792,996
–
1,982,489
250%
Cash items and other assets
28,784,388
110,945,645
28,784,388
–
13,792,211
48%
Total
821,840,388
315,615,823
757,713,979
39,951,357
445,210,025
Disclosure 9
Credit Risk under Standardised Approach: Exposures by asset classes and risk weights (Post CCF & CRM) – Bank
BANK
Description
Amount (LKR ’000) as at 31 December 2025
(Post CCF and CRM)
Amount (LKR ’000) as at 31 December 2025
(Post CCF and CRM)
Asset classes Risk weight
0%
20%
35%
50%
60%
75%
100%
150%
>150%
Total credit
exposures amount
Claims on Central Government and CBSL
229,494,244
5,473,438
–
–
–
–
–
–
–
234,967,682
Claims on foreign sovereigns and their Central Banks
–
1,569,429
–
–
–
–
–
–
–
1,569,429
Claims on public sector entities
–
–
–
–
–
–
–
–
–
–
Claims on official entities and multilateral development banks
–
–
–
–
–
–
–
–
–
–
Claims on banks exposures
–
20,453,896
–
10,980,734
–
–
2,623,504
–
–
34,058,134
Claims on financial institutions
–
1,106,260
–
12,229,812
–
–
3,060,616
–
–
16,396,688
Claims on corporates
–
11,252,575
–
3,334,423
–
–
189,025,246
–
–
203,612,244
Retail claims
22,777,144
4,190,494
–
–
9,346,870
102,840,407
41,611,037
–
–
180,765,952
Claims secured by residential property
–
–
19,809,510
–
–
–
–
–
–
19,809,510
Claims secured by commercial real estate
–
–
–
–
–
–
44,016,700
–
–
44,016,700
Non-performing assets (NPAs)
–
–
–
576,524
–
–
23,007,832
9,518,205
–
33,102,561
Higher-risk categories
–
–
–
–
–
–
–
–
776,053
776,053
Cash items and other assets
14,619,367
423,682
–
–
–
–
12,619,746
–
–
27,662,795
Total
266,890,755
44,469,774
19,809,510
27,121,493
9,346,870
102,840,407
315,964,681
9,518,205
776,053
796,737,748
Credit Risk under Standardised Approach: Exposures by asset classes and risk weights (Post CCF & CRM) – group
GROUP
Description
Amount (LKR ’000) as at 31 December 2025
(Post CCF and CRM)
Amount (LKR ’000) as at 31 December 2025
(Post CCF and CRM)
Asset classes Risk weight
0%
20%
35%
50%
60%
75%
100%
150%
>150%
Total credit
exposures amount
Claims on Central Government and CBSL
229,503,541
5,473,438
–
–
–
–
–
–
–
234,976,979
Claims on foreign sovereigns and their Central Banks
–
1,569,429
–
–
–
–
–
–
–
1,569,429
Claims on public sector entities
–
–
–
–
–
–
–
–
–
–
Claims on official entities and multilateral development banks
–
–
–
–
–
–
–
–
–
–
Claims on banks exposures
–
20,453,896
–
10,980,734
–
–
2,623,504
–
–
34,058,134
Claims on financial institutions
–
1,106,260
–
12,246,602
–
–
3,060,616
–
–
16,413,478
Claims on corporates
–
11,252,575
–
3,334,423
–
–
188,788,211
–
–
203,375,209
Retail claims
22,777,144
4,190,494
–
–
9,346,870
102,840,407
41,611,037
–
–
180,765,952
Claims secured by residential property
–
–
19,809,510
–
–
–
–
–
–
19,809,510
Claims secured by commercial real estate
–
–
–
–
–
–
44,016,700
–
–
44,016,700
Non-performing assets (NPAs)
–
–
–
576,524
–
–
23,007,832
9,518,205
–
33,102,561
Higher-risk categories
–
–
–
–
–
–
–
–
792,996
792,996
Cash items and other assets
14,653,230
423,682
–
–
–
–
13,707,476
–
–
28,784,388
Total
266,933,915
44,469,774
19,809,510
27,138,283
9,346,870
102,840,407
316,815,376
9,518,205
792,996
797,665,336
Disclosure 10
Market Risk under Standardised Measurement Method
31 December 2025
RWA amount
Item
BANK LKR ’000
GROUP LKR ’000
(a) Capital charge for interest rate risk
90,232
90,232
General interest rate risk
90,232
90,232
(i) Net long or short position
90,232
90,232
(ii) Horizontal disallowance
–
–
(iii) Vertical disallowance
–
–
(iv) Options
–
–
Specific interest rate risk
–
–
(b) Capital charge for equity
1,265,026
1,265,026
(i) General equity risk
657,827
657,827
(ii) Specific equity risk
607,199
607,199
(c) Capital charge for foreign exchange and gold
340,936
340,936
(d) Capital charge for market risk [(a) + (b) + (c)]
1,696,194
1,696,194
Total risk-weighted amount for Market Risk [ ( d )*100/Minimum total CAR ]
13,569,552
13,569,552
Disclosure 11
Operational Risk – Bank
Operational Risk under Basic Indicator Approach
Business lines
Capital
charge
factor
Fixed
factor
Gross Income (LKR ’000)
as at 31 December
2025
2024
2023
The basic indicator approach
15%
42,368,253
35,500,348
37,658,838
The standardised approach
Corporate finance
18%
Trading and sales
18%
Payment and settlement
18%
Agency services
15%
Asset management
12%
Retail brokerage
12%
Retail banking
12%
Commercial banking
15%
The alternative standardised approach
Corporate finance
18%
Trading and sales
18%
Payment and settlement
18%
Agency services
15%
Asset management
12%
Retail brokerage
12%
Retail banking
12%
0.035
Commercial banking
15%
0.035
Capital charges for operational risk (LKR ’000)
The basic indicator approach
5,776,372
The standardised approach
The alternative standardised approach
Risk weighted amount for operational risk (LKR ’000)
The basic indicator approach
46,210,976
The standardised approach
The alternative standardised approach
Operational Risk – groupOperational Risk under Basic Indicator Approach
Business lines
Capital
Charge
Factor
Fixed
Factor
Gross income (LKR ’000)
as at 31 December
2025
2024
2023
The basic indicator approach
15%
43,032,561
36,175,028
38,329,933
The standardised approach
Corporate finance
18%
Trading and sales
18%
Payment and settlement
18%
Agency services
15%
Asset management
12%
Retail brokerage
12%
Retail banking
12%
Commercial banking
15%
The alternative standardised approach
Corporate finance
18%
Trading and sales
18%
Payment and settlement
18%
Agency services
15%
Asset management
12%
Retail brokerage
12%
Retail banking
12%
0.035
Commercial banking
15%
0.035
Capital charges for operational risk (LKR ’000)
The basic indicator approach
5,876,876
The standardised approach
The alternative standardised approach
Risk weighted amount for operational risk (LKR ’000)
The basic indicator approach
47,015,009
The standardised approach
The alternative standardised approach
Disclosure 12
Differences between Accounting and Regulatory Scopes and Mapping of Financial Statement Categories with Regulatory Risk Categories – Bank Only
As at 31 December
2025
Item
Carrying
Values as
Reported in
Published
Financial
Statements
Statements
LKR ’000
Carrying
Values under
Scope of
Regulatory
Reporting
LKR ’000
Subject to
Credit Risk
Framework
LKR ’000
Subject to
Market Risk
Framework
LKR ’000
Not subject to
Capital
Requirements
or Subject to
Deduction
from Capital
LKR ’000
Assets
857,146,466
857,146,466
831,887,664
6,193,969
19,064,833
Cash and cash equivalents
22,771,091
22,771,091
22,771,091
–
–
Balances with Central Bank of Sri Lanka
2,952,879
2,952,879
2,952,879
–
–
Placements with Banks
37,442,912
37,442,912
37,442,912
–
–
Derivative financial assets
8,494,001
8,494,001
8,494,001
–
–
Financial Assets measured at fair value through profit or loss
9,015,005
9,015,005
2,821,036
6,193,969
–
Financial assets at amortised cost – Loans to
and receivables from other customers
510,924,245
510,924,245
510,924,245
–
–
Financial assets Measured at fair value through other comprehensive income – Loans to and receivables from other customers
4,619,866
4,619,866
4,619,866
–
–
Financial assets at amortised cost – Debt and other instruments
114,795,690
114,795,690
114,795,690
–
–
Financial assets measured at fair value through other comprehensive income
124,552,817
124,552,817
114,175,993
–
10,376,824
Investments in subsidiaries
270,204
270,204
270,204
–
–
Investment property
9,879
9,879
9,879
–
–
Property, plant and equipment
4,508,724
4,508,724
4,508,724
–
–
Intangible assets and goodwill
2,608,324
2,608,324
–
–
2,608,324
Deferred tax assets
5,731,675
5,731,675
–
–
5,731,675
Other assets
8,449,154
8,449,154
8,101,144
–
348,010
Liabilities
749,733,693
749,733,693
–
–
–
Due to Banks
12,372,311
12,372,311
–
–
–
Derivative financial liabilities
201,000
201,000
–
–
–
Financial liabilities at amortised cost – Due to depositors
564,758,931
564,758,931
–
–
–
Financial liabilities at amortised cost – Due to other borrowers
134,354,757
134,354,757
–
–
–
Debt securities in Issue
12,286,859
12,286,859
–
–
–
Retirement benefit obligation
1,182,185
1,182,185
–
–
–
Current tax liabilities
2,669,112
2,669,112
–
–
–
Other liabilities and provisions
12,545,239
12,545,239
–
–
–
Subordinated term debt
9,363,299
9,363,299
–
–
–
Off-balance sheet liabilities
262,236,519
262,236,519
260,825,758
–
–
Guarantees
25,825,628
25,825,628
25,255,748
–
–
Performance bonds
6,275,178
6,275,178
6,275,178
–
–
Letters of credit
38,918,184
38,918,184
38,918,184
–
–
Other contingent items
69,229,821
69,229,821
69,229,821
–
–
Undrawn loan commitments
121,146,827
121,146,827
121,146,827
–
–
Other commitments
840,881
840,881
–
–
–
Shareholders’ equity
107,412,773
107,412,773
–
–
–
Equity capital (Stated Capital/Assigned Capital)
of which amount eligible for CET1
15,445,973
15,445,973
–
–
–
of which amount eligible for AT1
–
–
–
–
–
Retained earnings
50,291,230
50,291,230
–
–
–
Accumulated other comprehensive income
23,149,281
23,149,281
–
–
–
Other reserves
18,526,289
18,526,289
–
–
–
Disclosure 13
Bank risk management approach
Refer to Integrated Risk Management Section from page 239 to page 267 of the Annual Report for the Bank’s overall risk management approach, including its general policies and frameworks for risk management, risk governance structure, risk appetite, and the risk capital position.
Disclosure 14
Risk management related to key risk exposures
Refer to Integrated Risk Management Section from page 239 to page 267 and Financial Risk Review Section from page 326 to page 364 of the Annual Report for the risk management disclosures relating to key risk areas, including Credit, Market, Liquidity, Operational, Technology and Information Security.
Assessment of domestic systemically important banks (D-SIBs)
GROUP
As at
31 December 2025
LKR ’000
Size Indicator
Indicator 1 Total Exposures
922,889,467
Interconnectedness
Indicator 2 – Intra-Financial System Assets
106,031,571
a. Funds deposited with or lent to other financial institutions (including unused portion of committed lines extended)
69,310,001
(i) Funds deposited
32,439,178
(ii) Lending
36,870,823
b. Holdings of securities issued by other financial institutions
33,267,886
c. Net positive current exposure of securities financing transactions (SFTs) with other financial institutions
2,890,953
d. Over-the-counter (OTC) derivatives with other financial institutions that have a net positive mark to mark value
562,731
Indicator 3 – Intra-Financial System Liabilities
65,945,218
a. Funds deposited by or borrowed from other financial institutions (including unused portion of committed lines obtained)
65,945,218
(i) Funds deposited
10,980,510
(ii) Borrowings
54,964,708
b. Net negative current exposure of securities financing transactions with other financial institutions
–
c. Over-the-counter derivatives with other financial institutions that have a net negative mark to mark value
–
Indicator 4 – Securities Outstanding
21,650,158
Substitutability/Financial Institution Infrastructure
Indicator 5 – Payment made in the reporting year (excluding intragroup payments)
3,087,007,239
Indicator 6 – Gross loans and receivables to non-bank customers (excluding Government)
542,754,923
Indicator 7 – Deposits of non-bank customers (excluding Government)
547,139,524
Complexity
Indicator 8 – Notional amount of Over-the-Counter (OTC) Derivatives
69,229,821
Indicator 9 – Cross-Jurisdictional claims (excluding derivatives and intragroup claims)
104,500,166
Indicator 10 – Cross-jurisdictional liabilities (excluding derivatives and intragroup liabilities)
54,264,024
Indicator 11 – Trading and Available for Sale (AFS) Securities
138,187,688
* As per the Banking Act Direction No. 02 of 2025 – Domestic Systemically Important Banks.
Maturity of Assets and Liabilities
2025
As at 31 December
Up to 1
month
LKR ’000
1-3
months
LKR ’000
3-6
months
LKR ’000
6-12
months
LKR ’000
1-3
years
LKR ’000
3-5
years
LKR ’000
Over
5
years
LKR ’000
Total
LKR ’000
Financial assets
Cash and cash equivalents
22,771,091
–
–
–
–
–
–
22,771,091
Balances with Central Bank of
Sri Lanka
2,952,879
–
–
–
–
–
–
2,952,879
Placement with banks
32,829,356
3,816,142
481,433
315,981
–
–
–
37,442,912
Derivative financial assets
198,957
1,087,325
822,519
1,359,414
5,025,786
–
–
8,494,001
Financial assets measured at
fair value through profit or loss
144,497
39,082
8,496
288,127
1,216,917
1,123,918
6,193,968
9,015,005
Financial assets measured at fair value through other comprehensive income – Loans and advances to customers
–
–
–
–
–
4,619,866
–
4,619,866
Financial assets at amortised
cost – Loans to and receivables from other customers
39,568,528
83,920,830
72,268,882
63,107,015
139,358,764
43,036,398
69,663,828
510,924,245
Financial assets at amortised
cost – Debt and other instruments
430,869
1,698,858
17,555,017
–
49,466,029
42,499,180
3,145,737
114,795,690
Financial assets measured at
fair value through other
comprehensive income
11,035,402
4,475,434
4,719,220
8,497,229
32,799,292
25,755,008
37,271,232
124,552,817
Other assets
3,775,549
400,768
194,377
374,136
219,093
160,178
1,074,499
6,198,600
Total financial assets
113,707,128
95,438,439
96,049,944
73,941,902
228,085,881
117,194,548
117,349,264
841,767,106
Financial liabilities
Due to banks
1,352,153
9,439,447
1,580,711
–
–
–
–
12,372,311
Derivative financial liabilities
89,534
33,323
198
77,945
–
–
–
201,000
Financial liabilities at amortised cost – Due to depositors
59,955,219
109,639,520
80,622,236
126,697,113
119,712,330
33,864,132
34,268,381
564,758,931
Financial liabilities at amortised cost – Due to other borrowers
38,309,844
29,908,863
17,957,403
16,529,277
24,492,243
5,017,258
2,139,869
134,354,757
Debt securities issued
–
2,426,237
–
107,543
2,641,736
7,111,343
–
12,286,859
Other liabilities
4,224,443
616,683
734,315
745,424
470,716
788,668
718,109
8,298,358
Subordinated term debt
1,166,966
–
–
–
196,371
7,945,192
54,770
9,363,299
Total financial liabilities
105,098,159
152,064,073
100,894,863
144,157,302
147,513,396
54,726,593
37,181,129
741,635,515
Total net financial assets/(liabilities)
8,608,969
(56,625,634)
(4,844,919)
(70,215,400)
80,572,485
62,467,955
80,168,135
100,131,591
Contingencies
Guarantees
–
–
–
–
–
2,789,678
–
2,789,678
Acceptance
1,663,550
680,966
2,336,545
7,604,435
8,873,360
1,762,900
114,194
23,035,950
Performance bonds
2,339
112,102
285,997
1,551,065
2,178,809
1,649,407
495,459
6,275,178
Forward contracts
22,780,410
14,474,673
16,070,178
806,371
15,098,189
–
–
69,229,821
Documentary credit
10,320,264
18,586,128
6,982,512
2,179,251
850,029
–
–
38,918,184
Total Contingencies
34,766,563
33,853,869
25,675,232
12,141,122
27,000,387
6,201,985
609,653
140,248,811
Commitments
Commitments in ordinary course of business – Commitments for unutilised credit facilities
121,146,827
–
–
–
–
–
–
121,146,827
Capital commitments
840,881
–
–
–
–
–
–
840,881
Total commitments
121,987,708
–
–
–
–
–
–
121,987,708
Total commitments and contingencies
156,754,271
33,853,269
25,675,232
12,141,122
27,000,387
6,201,985
609,653
262,236,519
2024
As at 31 December
Up to 1
month
LKR ’000
1-3
months
LKR ’000
3-6
months
LKR ’000
6-12
months
LKR ’000
1-3
years
LKR ’000
3-5
years
LKR ’000
Over 5
years
LKR ’000
Total
LKR ’000
Financial assets
Cash and cash equivalents
13,504,806
–
–
–
–
–
–
13,504,806
Balances with Central Bank of Sri Lanka
2,328,346
–
–
–
–
–
–
2,328,346
Placement with banks
11,229,492
–
–
–
–
–
–
11,229,492
Derivative financial assets
90,020
662,749
607,485
1,210,278
5,111,497
1,961,413
–
9,643,442
Financial assets measured at fair value
through profit or loss
84,561
6,594
–
–
1,737,541
–
5,587,322
7,416,018
Financial assets at amortised cost –
Loans to and receivables from banks
1,500,338
–
–
–
–
–
–
1,500,338
Financial assets at amortised cost – Loans to and receivables from other customers
33,122,085
62,539,088
41,380,654
50,362,955
111,042,995
39,801,554
56,797,722
395,047,053
Financial assets at amortised cost –
Debt and other instruments
1,968,781
1,471,837
12,821,143
1,299,203
32,685,637
41,947,893
13,447,196
105,641,690
Financial assets measured at fair value
through other comprehensive income
2,432,441
4,300,057
30,804,112
34,146,084
39,681,028
2,247,371
24,647,133
138,258,226
Other assets
4,084,635
7,287
65,521
112,542
217,684
181,705
277,154
4,946,528
Total financial assets
70,345,505
68,987,612
85,678,915
87,131,062
190,476,382
86,139,936
100,756,527
689,515,939
Financial liabilities
Due to banks
17,698
2,689,069
4,442,707
–
–
–
–
7,149,474
Derivative financial liabilities
99,031
632,537
177,620
–
–
–
–
909,188
Financial liabilities at amortised cost –
Due to depositors
43,302,232
102,316,706
86,880,436
90,005,575
81,593,914
32,251,952
28,802,365
465,153,180
Financial liabilities at amortised cost –
Due to other borrowers
25,250,598
16,502,081
6,163,590
11,757,508
23,145,660
10,451,736
3,484,459
96,755,632
Debt securities issued
–
642,356
5,299,812
67,456
4,270,068
4,411,031
–
14,690,723
Other liabilities
5,307,760
50,362
92,099
142,700
505,933
395,075
947,391
7,441,320
Subordinated term debt
1,169,078
4,483,582
–
4,388,242
197,069
7,941,332
54,751
18,234,054
Total financial liabilities
75,146,397
127,316,693
103,056,264
106,361,481
109,712,644
55,451,126
33,288,966
610,333,571
Total net financial assets/(liabilities)
(4,800,892)
(58,329,081)
(17,377,349)
(19,230,419)
80,763,738
30,688,810
67,467,561
79,182,368
Contingencies
Guarantees
18,942
27,161
151,660
6,889
6,506
5,018,307
2,797
5,232,262
Acceptance
2,615,760
2,403,046
607,234
53,625
77,310
7,500,795
–
13,257,770
Performance bonds
1,563,866
2,573,281
709,602
1,385,011
950,284
19,534
–
7,201,578
Forward contracts
7,243,553
16,137,790
2,068,220
4,221,152
17,717,145
16,546,837
–
63,934,697
Documentary credit
2,621,469
3,951,661
825,789
816,964
162,845
5,796,714
–
14,175,442
Total contingencies
14,063,590
25,092,939
4,362,505
6,483,641
18,914,090
34,882,187
2,797
103,801,749
Commitments
Commitments in ordinary course of business – Commitments for unutilised credit facilities
89,301,635
–
–
–
–
–
–
89,301,635
Capital commitments
889,386
–
–
–
–
–
–
889,386
Total commitments
90,191,021
–
–
–
–
–
–
90,191,021
Total commitments and contingencies
104,254,611
25,092,939
4,362,505
6,483,641
18,914,090
34,882,187
2,797
193,992,770
Maturity Gap Analysis of Foreign Currency Denominated Assets and Liabilities – USD
2025
As at 31 December
Up to 1
month
USD 000
1-3
months
USD 000
3-6
months
USD 000
6-12
months
USD 000
1-3
years
USD 000
3-5
years
USD 000
Over
5
years
USD 000
Total
USD 000
Total assets
110,640
66,978
65,248
22,189
100,196
22,625
28,994
416,870
Total liabilities
45,554
113,760
88,473
173,957
90,735
34,367
30,558
577,404
Total net financial assets/(liabilities)
65,086
(46,782)
(23,225)
(151,768)
9,461
(11,742)
(1,564)
(160,534)
2024
As at 31 December
Up to 1
month
USD 000
1-3
months
USD 000
3-6
months
USD 000
6-12
months
USD 000
1-3
years
USD 000
3-5
years
USD 000
Over
5
years
USD 000
Total
USD 000
Total assets
50,868
65,104
30,632
17,281
42,846
21,315
38,574
266,620
Total liabilities
35,828
84,630
83,754
127,518
94,860
49,094
26,161
501,845
Total net financial assets/(liabilities)
15,040
(19,526)
(53,122)
(110,237)
(52,014)
(27,779)
12,413
(235,225)
Sensitivity of Financial Assets and Financial Liabilities
As at 31 December
Bank
2025
Up to 1
month
LKR ’000
1-3
months
LKR ’000
3-6
months
LKR ’000
6-12
months
LKR ’000
1-3
years
LKR ’000
3-5
years
LKR ’000
Over 5
years
LKR ’000
Non-interest
bearing
LKR ’000
Total
LKR ’000
Financial assets
Cash and cash equivalents
361,944
–
–
–
–
–
–
22,409,147
22,771,091
Balances with Central Bank of Sri Lanka
–
–
–
–
–
–
–
2,952,879
2,952,879
Placement with banks
33,146,960
3,498,538
–
315,982
–
–
–
481,432
37,442,912
Derivative financial assets
–
–
–
–
–
–
–
8,494,001
8,494,001
Financial assets measured at fair value through profit or loss
144,374
39,083
8,496
288,248
1,216,917
1,123,918
–
6,193,969
9,015,005
Financial assets at amortised cost – Loans to and receivables from other customers
245,874,451
25,649,324
28,492,796
34,908,276
48,765,586
45,812,626
50,942,894
30,478,292
510,924,245
Financial assets Measured at fair value through other comprehensive income – Loans to and receivables from other customers
–
–
–
–
–
4,619,866
–
–
4,619,866
Financial assets at amortised cost – Debt and other instruments
818,513
1,593,039
17,273,028
1,614,295
48,141,316
42,196,315
3,159,184
–
114,795,690
Financial assets measured at fair value through other comprehensive income
11,032,634
4,494,688
4,701,629
8,756,943
32,708,840
25,602,307
5,711,050
31,544,726
124,552,817
Other assets
–
–
–
–
–
–
–
6,198,600
6,198,600
Total financial assets
291,378,876
35,274,672
50,475,949
45,883,744
130,832,659
119,355,032
59,813,128
108,753,046
841,767,106
Financial
liabilities
Due to banks
1,000,000
7,741,250
3,096,500
–
–
–
–
534,561
12,372,311
Derivative financial liabilities
–
–
–
–
–
–
–
201,000
201,000
Financial liabilities
at amortised cost – Due to depositors
160,619,459
89,883,351
70,035,342
110,288,958
76,005,678
5,256,471
5,312,132
47,357,540
564,758,931
Financial liabilities
at amortised cost –
Due to other borrowers
43,330,701
25,358,685
17,924,380
16,179,547
23,693,316
3,887,852
2,145,866
1,834,410
134,354,757
Debt securities issued
–
1,759,386
–
–
2,652,446
7,111,006
–
764,021
12,286,859
Other liabilities
–
–
–
–
–
–
–
8,298,358
8,298,358
Subordinated
term debt
–
–
–
–
192,833
7,945,230
54,770
1,170,466
9,363,299
Total financial
liabilities
204,950,160
124,742,672
91,056,222
126,468,505
102,544,273
24,200,559
7,512,768
60,160,356
741,635,515
Interest rate
sensitivity gap
86,428,716
(89,468,000)
(40,580,273)
(80,584,761)
28,288,386
95,154,473
52,300,360
48,592,690
As at 31 December
Bank
2024
Up to 1
month
LKR ’000
1-3
months
LKR ’000
3-6
months
LKR ’000
6-12
months
LKR ’000
1-3
years
LKR ’000
3-5
years
LKR ’000
Over 5
years
LKR ’000
Non-interest
bearing
LKR ’000
Total
LKR ’000
Financial assets
Cash and cash equivalents
204,107
–
–
–
–
–
–
13,300,699
13,504,806
Balances with Central Bank of Sri Lanka
–
–
–
–
–
–
–
2,328,346
2,328,346
Placements with banks
10,457,186
297,677
–
–
–
–
–
474,629
11,229,492
Derivative
financial assets
–
–
–
–
–
–
–
9,643,442
9,643,442
Financial assets measured at fair value through profit or loss
61,447
23,116
6,593
–
–
1,737,540
–
5,587,322
7,416,018
Financial assets
at amortised cost –
Loans to and receivables from banks
1,500,338
–
–
–
–
–
–
–
1,500,338
Financial assets at amortised cost – Loans to and receivables from other customers
150,458,026
55,268,447
22,966,380
31,789,811
26,626,948
43,996,279
41,194,278
22,746,884
395,047,053
Financial assets at amortised cost – Debt and other Instruments
1,968,800
1,471,837
12,821,143
1,299,203
32,685,619
41,947,892
13,447,196
–
105,641,690
Financial assets measured at fair value through other comprehensive income
2,492,757
3,839,705
31,271,210
17,713,405
18,283,967
38,354,145
1,739,327
24,563,710
138,258,226
Other assets
–
–
–
–
–
–
–
4,946,528
4,946,528
Total financial assets
167,142,661
60,900,782
67,065,326
50,802,419
77,596,534
126,035,856
56,380,801
83,591,560
689,515,939
Financial
liabilities
Due to banks
7,135,609
–
–
–
–
–
–
13,865
7,149,474
Derivative financial liabilities
–
–
–
–
–
–
–
909,188
909,188
Financial liabilities
at amortised cost –
Due to depositors
134,139,528
87,771,237
77,848,272
80,629,995
51,304,888
15,645,061
98,395
17,715,804
465,153,180
Financial liabilities
at amortised cost – Due to other borrowers
25,902,185
15,681,387
6,651,748
11,713,849
23,083,642
10,328,908
3,393,913
–
96,755,632
Debt securities issued
–
–
5,645,447
–
4,583,880
4,461,396
–
–
14,690,723
Other liabilities
–
–
–
–
–
–
–
7,441,320
7,441,320
Subordinated
term debt
–
5,635,605
–
4,318,000
280,448
7,945,230
54,771
–
18,234,054
Total financial
liabilities
167,177,322
109,088,229
90,145,467
96,661,844
79,252,858
38,380,595
3,547,079
26,080,177
610,333,571
Interest rate
sensitivity gap
(34,661)
(48,187,447)
(23,080,141)
(45,859,425)
(1,656,324)
87,655,261
52,833,722
57,511,383
Disclosure 1
Key Regulatory Ratios – Capital and Liquidity
|
Item |
31 December 2025 | 31 December 2024 | ||
| Bank | Group | Bank | Group | |
| Regulatory capital (LKR ’000) | ||||
| Common equity Tier 1 | 68,302,317 | 68,840,059 | 52,485,838 | 57,804,406 |
| Tier 1 capital | 68,302,317 | 68,840,059 | 52,485,838 | 57,804,406 |
| Total capital | 80,318,596 | 80,869,103 | 66,693,851 | 72,021,286 |
| Regulatory capital ratios (%) | ||||
|
Common equity Tier 1 capital ratio (Minimum requirement – 7.00%) |
13.55 | 13.61 | 12.40 | 13.61 |
|
Tier 1 capital ratio (Minimum requirement – 8.50%) |
13.55 | 13.61 | 12.40 | 13.61 |
|
Total capital ratio (Minimum requirement – 12.50%) |
15.93 | 15.99 | 15.76 | 16.96 |
|
Leverage Ratio (Minimum Requirement – 3%) |
7.40 | 7.46 | 7.33 | 8.03 |
| Regulatory Liquidity | ||||
|
Total Stock of High Quality Liquid Assets (LKR ’000) |
129,174,824 | N/A | 189,840,978 | N/A |
|
Liquidity coverage ratio – Rupee (Minimum requirement: 100%) (%) |
190.90 | N/A | 310.01 | N/A |
|
Liquidity coverage ratio – All currency (Minimum requirement: 100%) (%) |
184.06 | N/A | 280.26 | N/A |
|
Net stable funding ratio (Minimum requirement: 100%) (%) |
122.64 | N/A | 124.60 | N/A |
Disclosure 2
Basel III Computation of Capital Ratios
|
Item |
31 December 2025 | 31 December 2024 | ||
|
|
LKR ’000 |
|
|
|
|
Common equity Tier 1 (CET1) capital after adjustments |
68,302,317 | 68,840,059 | 52,485,838 | 57,804,406 |
| Common equity Tier 1 (CET1) capital | 86,605,232 | 88,474,933 | 71,009,611 | 77,842,985 |
| Equity capital (stated capital)/assigned capital | 15,445,973 | 15,445,973 | 14,710,454 | 14,710,454 |
| Reserve fund | 4,459,968 | 4,459,968 | 3,657,968 | 3,657,968 |
|
Published retained earnings/ (accumulated retained losses) |
50,291,230 | 52,160,931 | 35,834,730 | 42,668,104 |
|
Published accumulated Other Comprehensive Income (OCI) |
2,628,222 | 2,628,222 | 3,026,620 | 3,026,620 |
| General and other disclosed reserves | 13,779,839 | 13,779,839 | 13,779,839 | 13,779,839 |
| Unpublished current year's profit/loss and gains reflected in OCI | – | – | – | – |
| Ordinary shares issued by consolidated banking and financial subsidiaries of the Bank and held by third parties | – | – | – | – |
| Total adjustments to CET1 capital | 18,302,915 | 19,634,874 | 18,523,773 | 20,038,579 |
| Goodwill (net) | – | 156,226 | – | 156,226 |
| Intangible assets (net) | 2,608,324 | 2,629,334 | 2,001,636 | 2,013,975 |
|
Significant investments in the capital of financial institutions where the bank owns more than 10% of the issued ordinary share capital of the entity |
9,614,906 | 10,756,150 | 11,180,665 | 12,507,386 |
| Others | 6,079,685 | 6,093,164 | 5,341,472 | 5,360,992 |
|
Additional Tier 1 (AT1) capital after adjustments |
– | – | – | – |
| Additional Tier 1 (AT1) capital | – | – | – | – |
| Qualifying additional Tier 1 capital instruments | – | – | – | – |
|
Instruments issued by consolidated banking and financial subsidiaries of the Bank and held by third parties |
– | – | – | – |
| Total Adjustments to AT1 capital | – | – | – | – |
| Investment in own shares | – | – | – | – |
| Others | – | – | – | – |
| Tier 2 capital after adjustments | 12,016,278 | 12,029,043 | 14,208,013 | 14,216,880 |
| Tier 2 capital | 12,046,811 | 12,058,079 | 14,208,013 | 14,216,880 |
| Qualifying Tier 2 capital instruments | 6,492,954 | 6,492,954 | 9,803,906 | 9,803,906 |
| Revaluation gains | – | – | – | – |
| Eligible impairment | 5,553,857 | 5,565,125 | 4,404,107 | 4,412,974 |
| Instruments issued by consolidated banking and financial subsidiaries of the Bank and held by third parties | – | – | – | – |
| Total adjustments to Tier 2 | 30,533 | 29,036 | – | – |
| Investment in own shares | – | – | – | – |
|
Investments in financial institutions where the Bank holds 10% or less of the voting share capital |
30,533 | 29,036 | – | – |
|
|
68,302,317 | 68,840,059 | 52,485,838 | 57,804,406 |
|
|
68,302,317 | 68,840,059 | 52,485,838 | 57,804,406 |
|
|
80,318,596 | 80,869,103 | 66,693,851 | 72,021,286 |
|
|
504,089,106 | 505,794,586 | 423,201,054 | 424,683,050 |
| RWAs for credit risk | 444,308,578 | 445,210,025 | 352,328,550 | 353,037,904 |
| RWAs for market risk | 13,569,552 | 13,569,552 | 27,403,720 | 27,403,720 |
| RWAs for operational risk | 46,210,976 | 47,015,009 | 43,468,784 | 44,241,426 |
| CET1 capital ratio (including capital conservation buffer, countercyclical capital buffer and surcharge on D-SIBs) (%) | 13.55 | 13.61 | 12.40 | 13.61 |
| of which: capital conservation buffer (%) | 2.50 | 2.50 | 2.50 | 2.50 |
| of which: countercyclical buffer (%) | N/A | N/A | N/A | N/A |
| of which: capital surcharge on D-SIBs (%) | N/A | N/A | N/A | N/A |
| Total Tier 1 capital ratio (%) | 13.55 | 13.61 | 12.40 | 13.61 |
| Total capital ratio (including capital conservation buffer, countercyclical capital buffer and surcharge on d-sibs) (%) | 15.93 | 15.99 | 15.76 | 16.96 |
| of which: capital conservation buffer (%) | 2.50 | 2.50 | 2.50 | 2.50 |
| of which: countercyclical buffer (%) | N/A | N/A | N/A | N/A |
| of which: capital surcharge on D-SIBs (%) | N/A | N/A | N/A | N/A |
Disclosure 3
Leverage ratio
|
|
|
|
||
|
LKR ’000 |
LKR ’000 |
LKR ’000 |
|
|
| Tier 1 Capital | 68,302,317 | 68,840,059 | 52,485,838 | 57,804,406 |
| Total Exposures | 923,312,836 | 922,889,467 | 715,921,306 | 720,097,361 |
| On-Balance Sheet Items | ||||
|
(excluding securities financing transactions, but including collateral) |
826,556,388 | 826,133,019 | 672,489,151 | 676,665,206 |
| Derivative Exposures | 16,191,202 | 16,191,202 | 16,753,173 | 16,753,173 |
| Securities Financing Transaction Exposures | 3,606,877 | 3,606,877 | 2,851,459 | 2,851,459 |
| Other Off-Balance Sheet Exposures | 76,958,370 | 76,958,370 | 23,827,523 | 23,827,523 |
|
Basel III leverage ratio (Minimum requirement – 3%) (%) |
7.40 | 7.46 | 7.33 | 8.03 |
Disclosure 4
Liquidity Coverage Ratio (LCR) – All Currencies
|
|
Amount (LKR ’000) | |||
|
|
|
|||
|
value |
weighted |
|
|
|
| Total stock of High-Quality Liquid Assets (HQLA) | 129,656,833 | 129,174,824 | 190,863,719 | 189,840,978 |
| Total adjusted level 1A assets | 128,692,815 | 128,692,815 | 188,818,237 | 188,818,237 |
| Level 1 assets | 128,692,815 | 128,692,815 | 188,818,237 | 188,818,237 |
| Total adjusted level 2A assets | – | – | – | – |
| Level 2A assets | – | – | – | – |
| Total adjusted level 2B assets | 964,018 | 482,009 | 2,045,482 | 1,022,741 |
| Level 2B assets | 964,018 | 482,009 | 2,045,482 | 1,022,741 |
|
|
798,477,615 | 147,998,299 | 605,544,252 | 107,121,287 |
| Deposits | 359,357,923 | 33,230,233 | 327,258,102 | 28,901,213 |
| Unsecured wholesale funding | 205,982,011 | 97,933,572 | 134,877,080 | 64,457,610 |
| Secured funding transactions | 39,209,228 | – | 25,427,972 | – |
|
Undrawn portion of committed (irrevocable) facilities and other contingent funding obligations |
190,184,038 | 13,090,079 | 112,674,385 | 8,455,751 |
| Additional requirements | 3,744,415 | 3,744,415 | 5,306,713 | 5,306,713 |
|
|
91,251,927 | 77,818,957 | 59,200,684 | 39,384,729 |
| Maturing secured lending transactions backed by collateral | 42,110,847 | 40,153,408 | 25,763,891 | 18,588,160 |
| Committed facilities | – | – | – | – |
| Other inflows by counterparty which are maturing within 30 Days | 39,298,469 | 36,335,682 | 28,461,057 | 19,479,105 |
| Operational deposits | 7,382,001 | – | 2,435,145 | – |
| Other cash inflows | 2,460,610 | 1,329,867 | 2,540,591 | 1,317,464 |
| Liquidity coverage Ratio (%) (Stock of high quality liquid assets/Total Net Cash Outflows over the next 30 calendar days) *100 (Minimum requirement – 100%) | 184.06 | 280.26 | ||
Liquidity coverage ratio (LCR) – LKR Only
|
|
Amount (LKR ’000) | |||
|
|
|
|||
|
value |
weighted value |
un-weighted value |
weighted value |
|
| Total stock of High-Quality Liquid Assets (HQLA) | 127,860,612 | 127,378,603 | 190,127,663 | 189,104,922 |
| Total adjusted level 1A assets | 126,896,594 | 126,896,594 | 188,082,181 | 188,082,181 |
| Level 1 assets | 126,896,594 | 126,896,594 | 188,082,181 | 188,082,181 |
| Total adjusted level 2A assets | – | – | – | – |
| Level 2A assets | – | – | – | – |
| Total adjusted level 2B assets | 964,018 | 482,009 | 2,045,482 | 1,022,741 |
| Level 2B assets | 964,018 | 482,009 | 2,045,482 | 1,022,741 |
|
|
626,987,179 | 126,592,159 | 485,610,838 | 94,439,394 |
| Deposits | 311,962,443 | 28,490,685 | 285,736,836 | 24,827,049 |
| Unsecured wholesale funding | 112,644,822 | 55,582,937 | 70,754,099 | 37,379,639 |
| Secured funding transactions | 39,209,228 | – | 25,427,973 | – |
| Undrawn portion of committed (irrevocable) facilities and other contingent funding obligations | 130,087,001 | 9,434,852 | 77,536,349 | 6,077,125 |
| Additional requirements | 33,083,685 | 33,083,685 | 26,155,581 | 26,155,581 |
|
|
65,730,310 | 59,866,908 | 49,098,640 | 33,438,991 |
| Maturing secured lending transactions backed by collateral | 37,688,920 | 35,731,481 | 23,232,211 | 16,056,481 |
| Committed facilities | – | – | – | – |
| Other inflows by counterparty which are maturing within 30 Days | 18,929,407 | 16,154,188 | 17,660,717 | 10,399,925 |
| Operational deposits | – | – | – | – |
| Other cash inflows | 9,111,983 | 7,981,239 | 8,205,712 | 6,982,585 |
| Liquidity coverage Ratio (%) (Stock of high quality liquid assets/total net cash outflows over the next 30 calendar days) *100 (Minimum requirement – 100%) | 190.90 | 310.01 | ||
Disclosure 5
Net stable funding ratio (NSFR)
|
|
31 December 2025 | 31 December 2024 | ||
|
LKR ’000 |
|
|
LKR ’000 |
|
| Total available stable funding (ASF) | 564,606,617 | N/A | 488,990,770 | N/A |
| Total required stable funding (RSF) | ||||
| Required stable funding-On balance sheets assets | 452,533,367 | N/A | 386,813,051 | N/A |
| Required stable funding-Off balance sheet assets | 7,859,291 | N/A | 5,633,720 | N/A |
| Total required stable funding | 460,392,658 | N/A | 392,446,771 | N/A |
|
|
122.64 | N/A | 124.60 | N/A |
Disclosure 6
Main features of regulatory capital instruments
|
(Bank Only) |
|
(2020 – Type B) |
(2024 – Type A) |
(2024 – Type B) |
| Issuer | DFCC Bank PLC | DFCC Bank PLC | DFCC Bank PLC | DFCC Bank PLC |
| Unique Identifier (e.g., ISIN or Bloomberg identifier for private placement) | LK0055N00000 | C-2457 | C-2523 | C-2524 |
| Governing Law(s) of the Instrument | Sri Lanka | Sri Lanka | Sri Lanka | Sri Lanka |
| Original date of issuance | N/A | 23 October 2020 | 16 January 2024 | 16 January 2024 |
| Par value of instrument (LKR) | 100 | 100 | 100 | |
| Perpetual or dated | Perpetual | Dated | Dated | Dated |
| Original maturity date, if applicable | N/A | 23 October 2027 | 16 January 2029 | 16 January 2031 |
|
Amount recognised in regulatory capital (in LKR ’000 as at 31 December 2025) |
15,445,973 | 205,000 | 7,945,230 | 54,770 |
| Accounting classification (Equity/liability) | Equity | Liability | Liability | Liability |
| Issuer call subject to prior supervisory approval | ||||
| Optional call date, contingent call dates and redemption amount (LKR ’000) | N/A | N/A | N/A | N/A |
| Subsequent call dates, if applicable | N/A | N/A | N/A | N/A |
| Coupons/dividends | ||||
| Fixed or floating dividend/coupon | Floating dividend | Fixed coupon | Fixed coupon | Fixed coupon |
| Coupon rate and any related index (%) | N/A | 9.25% p.a | 15.25% p.a | 14.75% p.a |
| Non-cumulative or cumulative | Non-cumulative | Non-Cumulative | Non-Cumulative | Non-Cumulative |
| Convertible or non-convertible | Non-convertible | Convertible | Convertible | Convertible |
| If Convertible, conversion trigger (s) | N/A | Determined by and at the sole discretion of the Monetary Board of the Central Bank of Sri Lanka, and is defined in the Banking Act Direction No. 1 of 2016 | Determined by and at the sole discretion of the Monetary Board of the Central Bank of Sri Lanka, and is defined in the Banking Act Direction No. 1 of 2016 | Determined by and at the sole discretion of the Monetary Board of the Central Bank of Sri Lanka, and is defined in the Banking Act Direction No. 1 of 2016 |
| If Convertible, fully or partially | N/A | Fully | Fully | Fully |
| If Convertible, mandatory or optional | N/A | Mandatory | Mandatory | Mandatory |
| If Convertible, conversion rate | N/A | Based on the simple average of the daily Volume Weighted Average Price (VWAP) of an ordinary voting shares during the three months (0-3) period, immediately preceding the date of the Trigger Event | Based on the simple average of the daily Volume Weighted Average Price (VWAP) of an ordinary voting shares during the three months (0-3) period, immediately preceding the date of the Trigger Event | Based on the simple average of the daily Volume Weighted Average Price (VWAP) of an ordinary voting shares during the three months (0-3) period, immediately preceding the date of the Trigger Event |
Disclosure 7
Summary discussion on adequacy/meeting current and future capital requirements
The Bank’s capital planning framework ensures that it maintains adequate capital to support current and future business activities, absorb unexpected losses, and comply with regulatory requirements. Under Basel III’s Pillar II (Supervisory Review Process – SRP), the Bank has implemented an Internal Capital Adequacy Assessment Process (ICAAP) to assess capital adequacy in line with its risk profile and strategic objectives. The ICAAP integrates risk management with capital planning, utilising both regulatory capital calculations (Pillar I) and economic capital assessments (Pillar II) to cover all material risks. The Bank applies a combination of quantitative and qualitative assessment methods, ensuring a comprehensive evaluation of risk exposures, including credit, market, operational, concentration, liquidity, interest rate, reputational, and strategic risks. This forward-looking approach aligns capital requirements with the Bank’s risk appetite and business expansion plans.
Capital forecasting is conducted over a three-year horizon, considering projected business growth, macroeconomic conditions, and potential stress scenarios. The Bank ensures capital adequacy through internal sources such as retained earnings and profit reinvestment, while also evaluating external sources, including equity issuance and subordinated debt, as needed. Anticipated capital expenditure is factored into capital planning to support business expansion and regulatory compliance. Stress testing is a key component of the ICAAP, enabling the Bank to assess the resilience of its capital position under adverse conditions and proactively manage emerging risks. Regular reviews of risk-weighted assets and capital buffers ensure alignment with evolving regulatory and business requirements.
To address unexpected capital shortfalls or market disruptions, the Bank has a contingency plan that includes raising additional capital, restricting business activities, or deploying risk mitigation techniques. Senior Management actively participates in the capital planning process, ensuring that strategic objectives, risk management frameworks, and capital requirements are well integrated. This disciplined approach enhances the Bank’s financial stability and ensures that it maintains a sufficient capital buffer to absorb potential losses while pursuing sustainable growth.
Refer to the Capital Adequacy Management Section on page 263 of the Annual Report.
Disclosure 8
Credit Risk under Standardised Approach – Credit Risk Exposures and Credit Risk Mitigation (CRM) Effects
| Asset class | Amount (LKR ’000) as at 31 December 2025 | |||||
|
Exposures before Credit Conversion Factor (CCF) and CRM |
Exposures post CCF and CRM |
RWA and RWA density (%) |
||||
|
LKR ’000 |
sheet amount |
LKR ’000 |
|
|
|
|
| Bank | ||||||
|
Claims on Central Government and CBSL |
231,828,365 | 66,961,419 | 231,828,365 | 3,139,317 | 1,094,688 | 0% |
|
Claims on foreign sovereigns and their Central Banks |
1,569,429 | – | 1,569,429 | – | 313,886 | 20% |
| Claims on public sector entities | 7,447,993 | – | – | – | – | 0% |
| Claims on official entities and multilateral development banks | – | – | – | – | – | 0% |
| Claims on banks exposures | 32,072,501 | 59,831,282 | 32,072,501 | 1,985,633 | 12,204,650 | 36% |
| Claims on financial institutions | 16,128,090 | 1,429,902 | 16,128,090 | 268,598 | 9,396,774 | 57% |
| Claims on corporates | 234,682,572 | 61,008,939 | 178,004,156 | 25,608,088 | 192,942,973 | 95% |
| Retail claims | 171,816,231 | 15,438,636 | 171,816,231 | 8,949,721 | 125,187,563 | 69% |
|
Claims secured by residential property |
19,809,510 | – | 19,809,510 | – | 6,933,329 | 35% |
|
Claims secured by commercial real estate |
44,016,700 | – | 44,016,700 | – | 44,016,700 | 100% |
| Non-performing assets (NPAs) | 33,102,561 | – | 33,102,561 | – | 37,573,402 | 114% |
| Higher-risk categories | 776,053 | – | 776,053 | – | 1,940,132 | 250% |
| Cash items and other assets | 27,662,795 | 110,945,645 | 27,662,795 | – | 12,704,481 | 46% |
|
|
820,912,800 | 315,615,823 | 756,786,391 | 39,951,357 | 444,308,578 | |
| Group | ||||||
|
Claims on Central Government and CBSL |
231,837,662 | 66,961,419 | 231,837,662 | 3,139,317 | 1,094,688 | 0% |
|
Claims on foreign sovereigns and their Central Banks |
1,569,429 | – | 1,569,429 | – | 313,886 | 20% |
| Claims on public sector entities | 7,447,993 | – | – | – | – | 0% |
| Claims on official entities and multilateral development banks | – | – | – | – | – | 0% |
| Claims on banks exposures | 32,072,501 | 59,831,282 | 32,072,501 | 1,985,633 | 12,204,650 | 36% |
| Claims on financial institutions | 16,144,880 | 1,429,902 | 16,144,880 | 268,598 | 9,405,169 | 57% |
| Claims on corporates | 234,445,537 | 61,008,939 | 177,767,121 | 25,608,088 | 192,705,938 | 95% |
| Retail claims | 171,816,231 | 15,438,636 | 171,816,231 | 8,949,721 | 125,187,563 | 69% |
|
Claims secured by residential property |
19,809,510 | – | 19,809,510 | – | 6,933,329 | 35% |
|
Claims secured by commercial real estate |
44,016,700 | – | 44,016,700 | – | 44,016,700 | 100% |
| Non-performing assets (NPAs) | 33,102,561 | – | 33,102,561 | – | 37,573,402 | 114% |
| Higher-risk categories | 792,996 | – | 792,996 | – | 1,982,489 | 250% |
| Cash items and other assets | 28,784,388 | 110,945,645 | 28,784,388 | – | 13,792,211 | 48% |
|
|
821,840,388 | 315,615,823 | 757,713,979 | 39,951,357 | 445,210,025 | |
Disclosure 9
Credit Risk under Standardised Approach: Exposures by asset classes and risk weights (Post CCF & CRM) – Bank
|
|
Amount (LKR ’000) as at 31 December 2025 (Post CCF and CRM) |
Amount (LKR ’000) as at 31 December 2025 (Post CCF and CRM) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| Claims on Central Government and CBSL | 229,494,244 | 5,473,438 | – | – | – | – | – | – | – | 234,967,682 |
| Claims on foreign sovereigns and their Central Banks | – | 1,569,429 | – | – | – | – | – | – | – | 1,569,429 |
| Claims on public sector entities | – | – | – | – | – | – | – | – | – | – |
| Claims on official entities and multilateral development banks | – | – | – | – | – | – | – | – | – | – |
| Claims on banks exposures | – | 20,453,896 | – | 10,980,734 | – | – | 2,623,504 | – | – | 34,058,134 |
| Claims on financial institutions | – | 1,106,260 | – | 12,229,812 | – | – | 3,060,616 | – | – | 16,396,688 |
| Claims on corporates | – | 11,252,575 | – | 3,334,423 | – | – | 189,025,246 | – | – | 203,612,244 |
| Retail claims | 22,777,144 | 4,190,494 | – | – | 9,346,870 | 102,840,407 | 41,611,037 | – | – | 180,765,952 |
| Claims secured by residential property | – | – | 19,809,510 | – | – | – | – | – | – | 19,809,510 |
| Claims secured by commercial real estate | – | – | – | – | – | – | 44,016,700 | – | – | 44,016,700 |
| Non-performing assets (NPAs) | – | – | – | 576,524 | – | – | 23,007,832 | 9,518,205 | – | 33,102,561 |
| Higher-risk categories | – | – | – | – | – | – | – | – | 776,053 | 776,053 |
| Cash items and other assets | 14,619,367 | 423,682 | – | – | – | – | 12,619,746 | – | – | 27,662,795 |
| Total | 266,890,755 | 44,469,774 | 19,809,510 | 27,121,493 | 9,346,870 | 102,840,407 | 315,964,681 | 9,518,205 | 776,053 | 796,737,748 |
Credit Risk under Standardised Approach: Exposures by asset classes and risk weights (Post CCF & CRM) – group
|
|
Amount (LKR ’000) as at 31 December 2025 (Post CCF and CRM) |
Amount (LKR ’000) as at 31 December 2025 (Post CCF and CRM) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| Claims on Central Government and CBSL | 229,503,541 | 5,473,438 | – | – | – | – | – | – | – | 234,976,979 |
| Claims on foreign sovereigns and their Central Banks | – | 1,569,429 | – | – | – | – | – | – | – | 1,569,429 |
| Claims on public sector entities | – | – | – | – | – | – | – | – | – | – |
| Claims on official entities and multilateral development banks | – | – | – | – | – | – | – | – | – | – |
| Claims on banks exposures | – | 20,453,896 | – | 10,980,734 | – | – | 2,623,504 | – | – | 34,058,134 |
| Claims on financial institutions | – | 1,106,260 | – | 12,246,602 | – | – | 3,060,616 | – | – | 16,413,478 |
| Claims on corporates | – | 11,252,575 | – | 3,334,423 | – | – | 188,788,211 | – | – | 203,375,209 |
| Retail claims | 22,777,144 | 4,190,494 | – | – | 9,346,870 | 102,840,407 | 41,611,037 | – | – | 180,765,952 |
| Claims secured by residential property | – | – | 19,809,510 | – | – | – | – | – | – | 19,809,510 |
| Claims secured by commercial real estate | – | – | – | – | – | – | 44,016,700 | – | – | 44,016,700 |
| Non-performing assets (NPAs) | – | – | – | 576,524 | – | – | 23,007,832 | 9,518,205 | – | 33,102,561 |
| Higher-risk categories | – | – | – | – | – | – | – | – | 792,996 | 792,996 |
| Cash items and other assets | 14,653,230 | 423,682 | – | – | – | – | 13,707,476 | – | – | 28,784,388 |
| Total | 266,933,915 | 44,469,774 | 19,809,510 | 27,138,283 | 9,346,870 | 102,840,407 | 316,815,376 | 9,518,205 | 792,996 | 797,665,336 |
Disclosure 10
Market Risk under Standardised Measurement Method
|
31 December 2025 |
||
|
|
BANK LKR ’000 | GROUP LKR ’000 |
| (a) Capital charge for interest rate risk | 90,232 | 90,232 |
| General interest rate risk | 90,232 | 90,232 |
| (i) Net long or short position | 90,232 | 90,232 |
| (ii) Horizontal disallowance | – | – |
| (iii) Vertical disallowance | – | – |
| (iv) Options | – | – |
| Specific interest rate risk | – | – |
| (b) Capital charge for equity | 1,265,026 | 1,265,026 |
| (i) General equity risk | 657,827 | 657,827 |
| (ii) Specific equity risk | 607,199 | 607,199 |
| (c) Capital charge for foreign exchange and gold | 340,936 | 340,936 |
| (d) Capital charge for market risk [(a) + (b) + (c)] | 1,696,194 | 1,696,194 |
| Total risk-weighted amount for Market Risk [ ( d )*100/Minimum total CAR ] | 13,569,552 | 13,569,552 |
Disclosure 11
Operational Risk – Bank
Operational Risk under Basic Indicator Approach
|
|
|
|
as at 31 December |
||
|
|
|
|
|||
| The basic indicator approach | 15% | 42,368,253 | 35,500,348 | 37,658,838 | |
| The standardised approach | |||||
| Corporate finance | 18% | ||||
| Trading and sales | 18% | ||||
| Payment and settlement | 18% | ||||
| Agency services | 15% | ||||
| Asset management | 12% | ||||
| Retail brokerage | 12% | ||||
| Retail banking | 12% | ||||
| Commercial banking | 15% | ||||
| The alternative standardised approach | |||||
| Corporate finance | 18% | ||||
| Trading and sales | 18% | ||||
| Payment and settlement | 18% | ||||
| Agency services | 15% | ||||
| Asset management | 12% | ||||
| Retail brokerage | 12% | ||||
| Retail banking | 12% | 0.035 | |||
| Commercial banking | 15% | 0.035 | |||
| Capital charges for operational risk (LKR ’000) | |||||
| The basic indicator approach | 5,776,372 | ||||
| The standardised approach | |||||
| The alternative standardised approach | |||||
| Risk weighted amount for operational risk (LKR ’000) | |||||
| The basic indicator approach | 46,210,976 | ||||
| The standardised approach | |||||
| The alternative standardised approach | |||||
Operational Risk – groupOperational Risk under Basic Indicator Approach
|
|
|
|
Gross income (LKR ’000) as at 31 December |
||
|
|
|
|
|||
| The basic indicator approach | 15% | 43,032,561 | 36,175,028 | 38,329,933 | |
| The standardised approach | |||||
| Corporate finance | 18% | ||||
| Trading and sales | 18% | ||||
| Payment and settlement | 18% | ||||
| Agency services | 15% | ||||
| Asset management | 12% | ||||
| Retail brokerage | 12% | ||||
| Retail banking | 12% | ||||
| Commercial banking | 15% | ||||
| The alternative standardised approach | |||||
| Corporate finance | 18% | ||||
| Trading and sales | 18% | ||||
| Payment and settlement | 18% | ||||
| Agency services | 15% | ||||
| Asset management | 12% | ||||
| Retail brokerage | 12% | ||||
| Retail banking | 12% | 0.035 | |||
| Commercial banking | 15% | 0.035 | |||
| Capital charges for operational risk (LKR ’000) | |||||
| The basic indicator approach | 5,876,876 | ||||
| The standardised approach | |||||
| The alternative standardised approach | |||||
| Risk weighted amount for operational risk (LKR ’000) | |||||
| The basic indicator approach | 47,015,009 | ||||
| The standardised approach | |||||
| The alternative standardised approach | |||||
Disclosure 12
Differences between Accounting and Regulatory Scopes and Mapping of Financial Statement Categories with Regulatory Risk Categories – Bank Only
| As at 31 December | 2025 | ||||
|
|
|
|
LKR ’000 |
LKR ’000 |
LKR ’000 |
| Assets | 857,146,466 | 857,146,466 | 831,887,664 | 6,193,969 | 19,064,833 |
| Cash and cash equivalents | 22,771,091 | 22,771,091 | 22,771,091 | – | – |
| Balances with Central Bank of Sri Lanka | 2,952,879 | 2,952,879 | 2,952,879 | – | – |
| Placements with Banks | 37,442,912 | 37,442,912 | 37,442,912 | – | – |
| Derivative financial assets | 8,494,001 | 8,494,001 | 8,494,001 | – | – |
| Financial Assets measured at fair value through profit or loss | 9,015,005 | 9,015,005 | 2,821,036 | 6,193,969 | – |
|
Financial assets at amortised cost – Loans to and receivables from other customers |
510,924,245 | 510,924,245 | 510,924,245 | – | – |
| Financial assets Measured at fair value through other comprehensive income – Loans to and receivables from other customers | 4,619,866 | 4,619,866 | 4,619,866 | – | – |
| Financial assets at amortised cost – Debt and other instruments | 114,795,690 | 114,795,690 | 114,795,690 | – | – |
| Financial assets measured at fair value through other comprehensive income | 124,552,817 | 124,552,817 | 114,175,993 | – | 10,376,824 |
| Investments in subsidiaries | 270,204 | 270,204 | 270,204 | – | – |
| Investment property | 9,879 | 9,879 | 9,879 | – | – |
| Property, plant and equipment | 4,508,724 | 4,508,724 | 4,508,724 | – | – |
| Intangible assets and goodwill | 2,608,324 | 2,608,324 | – | – | 2,608,324 |
| Deferred tax assets | 5,731,675 | 5,731,675 | – | – | 5,731,675 |
| Other assets | 8,449,154 | 8,449,154 | 8,101,144 | – | 348,010 |
| Liabilities | 749,733,693 | 749,733,693 | – | – | – |
| Due to Banks | 12,372,311 | 12,372,311 | – | – | – |
| Derivative financial liabilities | 201,000 | 201,000 | – | – | – |
| Financial liabilities at amortised cost – Due to depositors | 564,758,931 | 564,758,931 | – | – | – |
| Financial liabilities at amortised cost – Due to other borrowers | 134,354,757 | 134,354,757 | – | – | – |
| Debt securities in Issue | 12,286,859 | 12,286,859 | – | – | – |
| Retirement benefit obligation | 1,182,185 | 1,182,185 | – | – | – |
| Current tax liabilities | 2,669,112 | 2,669,112 | – | – | – |
| Other liabilities and provisions | 12,545,239 | 12,545,239 | – | – | – |
| Subordinated term debt | 9,363,299 | 9,363,299 | – | – | – |
| Off-balance sheet liabilities | 262,236,519 | 262,236,519 | 260,825,758 | – | – |
| Guarantees | 25,825,628 | 25,825,628 | 25,255,748 | – | – |
| Performance bonds | 6,275,178 | 6,275,178 | 6,275,178 | – | – |
| Letters of credit | 38,918,184 | 38,918,184 | 38,918,184 | – | – |
| Other contingent items | 69,229,821 | 69,229,821 | 69,229,821 | – | – |
| Undrawn loan commitments | 121,146,827 | 121,146,827 | 121,146,827 | – | – |
| Other commitments | 840,881 | 840,881 | – | – | – |
| Shareholders’ equity | 107,412,773 | 107,412,773 | – | – | – |
|
Equity capital (Stated Capital/Assigned Capital) of which amount eligible for CET1 |
15,445,973 | 15,445,973 | – | – | – |
| of which amount eligible for AT1 | – | – | – | – | – |
| Retained earnings | 50,291,230 | 50,291,230 | – | – | – |
| Accumulated other comprehensive income | 23,149,281 | 23,149,281 | – | – | – |
| Other reserves | 18,526,289 | 18,526,289 | – | – | – |
Disclosure 13
Bank risk management approach
Refer to Integrated Risk Management Section from page 239 to page 267 of the Annual Report for the Bank’s overall risk management approach, including its general policies and frameworks for risk management, risk governance structure, risk appetite, and the risk capital position.
Disclosure 14
Risk management related to key risk exposures
Refer to Integrated Risk Management Section from page 239 to page 267 and Financial Risk Review Section from page 326 to page 364 of the Annual Report for the risk management disclosures relating to key risk areas, including Credit, Market, Liquidity, Operational, Technology and Information Security.
Assessment of domestic systemically important banks (D-SIBs)
|
|
31 December 2025 |
| Size Indicator | |
| Indicator 1 Total Exposures | 922,889,467 |
| Interconnectedness | |
|
|
106,031,571 |
| a. Funds deposited with or lent to other financial institutions (including unused portion of committed lines extended) | 69,310,001 |
| (i) Funds deposited | 32,439,178 |
| (ii) Lending | 36,870,823 |
| b. Holdings of securities issued by other financial institutions | 33,267,886 |
| c. Net positive current exposure of securities financing transactions (SFTs) with other financial institutions | 2,890,953 |
| d. Over-the-counter (OTC) derivatives with other financial institutions that have a net positive mark to mark value | 562,731 |
| Indicator 3 – Intra-Financial System Liabilities | 65,945,218 |
| a. Funds deposited by or borrowed from other financial institutions (including unused portion of committed lines obtained) | 65,945,218 |
| (i) Funds deposited | 10,980,510 |
| (ii) Borrowings | 54,964,708 |
| b. Net negative current exposure of securities financing transactions with other financial institutions | – |
| c. Over-the-counter derivatives with other financial institutions that have a net negative mark to mark value | – |
|
|
21,650,158 |
| Substitutability/Financial Institution Infrastructure | |
|
|
3,087,007,239 |
|
|
542,754,923 |
|
|
547,139,524 |
| Complexity | |
|
|
69,229,821 |
|
|
104,500,166 |
|
|
54,264,024 |
|
|
138,187,688 |
* As per the Banking Act Direction No. 02 of 2025 – Domestic Systemically Important Banks.
Maturity of Assets and Liabilities
|
2025 |
||||||||
|
|
|
|
|
|
|
|
years |
|
| Financial assets | ||||||||
| Cash and cash equivalents | 22,771,091 | – | – | – | – | – | – | 22,771,091 |
|
Balances with Central Bank of Sri Lanka |
2,952,879 | – | – | – | – | – | – | 2,952,879 |
| Placement with banks | 32,829,356 | 3,816,142 | 481,433 | 315,981 | – | – | – | 37,442,912 |
| Derivative financial assets | 198,957 | 1,087,325 | 822,519 | 1,359,414 | 5,025,786 | – | – | 8,494,001 |
|
Financial assets measured at fair value through profit or loss |
144,497 | 39,082 | 8,496 | 288,127 | 1,216,917 | 1,123,918 | 6,193,968 | 9,015,005 |
| Financial assets measured at fair value through other comprehensive income – Loans and advances to customers | – | – | – | – | – | 4,619,866 | – | 4,619,866 |
|
Financial assets at amortised cost – Loans to and receivables from other customers |
39,568,528 | 83,920,830 | 72,268,882 | 63,107,015 | 139,358,764 | 43,036,398 | 69,663,828 | 510,924,245 |
|
Financial assets at amortised cost – Debt and other instruments |
430,869 | 1,698,858 | 17,555,017 | – | 49,466,029 | 42,499,180 | 3,145,737 | 114,795,690 |
|
Financial assets measured at fair value through other comprehensive income |
11,035,402 | 4,475,434 | 4,719,220 | 8,497,229 | 32,799,292 | 25,755,008 | 37,271,232 | 124,552,817 |
| Other assets | 3,775,549 | 400,768 | 194,377 | 374,136 | 219,093 | 160,178 | 1,074,499 | 6,198,600 |
| Total financial assets | 113,707,128 | 95,438,439 | 96,049,944 | 73,941,902 | 228,085,881 | 117,194,548 | 117,349,264 | 841,767,106 |
| Financial liabilities | ||||||||
| Due to banks | 1,352,153 | 9,439,447 | 1,580,711 | – | – | – | – | 12,372,311 |
| Derivative financial liabilities | 89,534 | 33,323 | 198 | 77,945 | – | – | – | 201,000 |
| Financial liabilities at amortised cost – Due to depositors | 59,955,219 | 109,639,520 | 80,622,236 | 126,697,113 | 119,712,330 | 33,864,132 | 34,268,381 | 564,758,931 |
| Financial liabilities at amortised cost – Due to other borrowers | 38,309,844 | 29,908,863 | 17,957,403 | 16,529,277 | 24,492,243 | 5,017,258 | 2,139,869 | 134,354,757 |
| Debt securities issued | – | 2,426,237 | – | 107,543 | 2,641,736 | 7,111,343 | – | 12,286,859 |
| Other liabilities | 4,224,443 | 616,683 | 734,315 | 745,424 | 470,716 | 788,668 | 718,109 | 8,298,358 |
| Subordinated term debt | 1,166,966 | – | – | – | 196,371 | 7,945,192 | 54,770 | 9,363,299 |
| Total financial liabilities | 105,098,159 | 152,064,073 | 100,894,863 | 144,157,302 | 147,513,396 | 54,726,593 | 37,181,129 | 741,635,515 |
| Total net financial assets/(liabilities) | 8,608,969 | (56,625,634) | (4,844,919) | (70,215,400) | 80,572,485 | 62,467,955 | 80,168,135 | 100,131,591 |
| Contingencies | ||||||||
| Guarantees | – | – | – | – | – | 2,789,678 | – | 2,789,678 |
| Acceptance | 1,663,550 | 680,966 | 2,336,545 | 7,604,435 | 8,873,360 | 1,762,900 | 114,194 | 23,035,950 |
| Performance bonds | 2,339 | 112,102 | 285,997 | 1,551,065 | 2,178,809 | 1,649,407 | 495,459 | 6,275,178 |
| Forward contracts | 22,780,410 | 14,474,673 | 16,070,178 | 806,371 | 15,098,189 | – | – | 69,229,821 |
| Documentary credit | 10,320,264 | 18,586,128 | 6,982,512 | 2,179,251 | 850,029 | – | – | 38,918,184 |
| Total Contingencies | 34,766,563 | 33,853,869 | 25,675,232 | 12,141,122 | 27,000,387 | 6,201,985 | 609,653 | 140,248,811 |
| Commitments | ||||||||
| Commitments in ordinary course of business – Commitments for unutilised credit facilities | 121,146,827 | – | – | – | – | – | – | 121,146,827 |
| Capital commitments | 840,881 | – | – | – | – | – | – | 840,881 |
| Total commitments | 121,987,708 | – | – | – | – | – | – | 121,987,708 |
| Total commitments and contingencies | 156,754,271 | 33,853,269 | 25,675,232 | 12,141,122 | 27,000,387 | 6,201,985 | 609,653 | 262,236,519 |
| 2024 | ||||||||
|
|
|
|
|
|
|
|
|
|
| Financial assets | ||||||||
| Cash and cash equivalents | 13,504,806 | – | – | – | – | – | – | 13,504,806 |
| Balances with Central Bank of Sri Lanka | 2,328,346 | – | – | – | – | – | – | 2,328,346 |
| Placement with banks | 11,229,492 | – | – | – | – | – | – | 11,229,492 |
| Derivative financial assets | 90,020 | 662,749 | 607,485 | 1,210,278 | 5,111,497 | 1,961,413 | – | 9,643,442 |
|
Financial assets measured at fair value through profit or loss |
84,561 | 6,594 | – | – | 1,737,541 | – | 5,587,322 | 7,416,018 |
|
Financial assets at amortised cost – Loans to and receivables from banks |
1,500,338 | – | – | – | – | – | – | 1,500,338 |
| Financial assets at amortised cost – Loans to and receivables from other customers | 33,122,085 | 62,539,088 | 41,380,654 | 50,362,955 | 111,042,995 | 39,801,554 | 56,797,722 | 395,047,053 |
|
Financial assets at amortised cost – Debt and other instruments |
1,968,781 | 1,471,837 | 12,821,143 | 1,299,203 | 32,685,637 | 41,947,893 | 13,447,196 | 105,641,690 |
|
Financial assets measured at fair value through other comprehensive income |
2,432,441 | 4,300,057 | 30,804,112 | 34,146,084 | 39,681,028 | 2,247,371 | 24,647,133 | 138,258,226 |
| Other assets | 4,084,635 | 7,287 | 65,521 | 112,542 | 217,684 | 181,705 | 277,154 | 4,946,528 |
| Total financial assets | 70,345,505 | 68,987,612 | 85,678,915 | 87,131,062 | 190,476,382 | 86,139,936 | 100,756,527 | 689,515,939 |
| Financial liabilities | ||||||||
| Due to banks | 17,698 | 2,689,069 | 4,442,707 | – | – | – | – | 7,149,474 |
| Derivative financial liabilities | 99,031 | 632,537 | 177,620 | – | – | – | – | 909,188 |
|
Financial liabilities at amortised cost – Due to depositors |
43,302,232 | 102,316,706 | 86,880,436 | 90,005,575 | 81,593,914 | 32,251,952 | 28,802,365 | 465,153,180 |
|
Financial liabilities at amortised cost – Due to other borrowers |
25,250,598 | 16,502,081 | 6,163,590 | 11,757,508 | 23,145,660 | 10,451,736 | 3,484,459 | 96,755,632 |
| Debt securities issued | – | 642,356 | 5,299,812 | 67,456 | 4,270,068 | 4,411,031 | – | 14,690,723 |
| Other liabilities | 5,307,760 | 50,362 | 92,099 | 142,700 | 505,933 | 395,075 | 947,391 | 7,441,320 |
| Subordinated term debt | 1,169,078 | 4,483,582 | – | 4,388,242 | 197,069 | 7,941,332 | 54,751 | 18,234,054 |
|
|
75,146,397 | 127,316,693 | 103,056,264 | 106,361,481 | 109,712,644 | 55,451,126 | 33,288,966 | 610,333,571 |
|
|
(4,800,892) | (58,329,081) | (17,377,349) | (19,230,419) | 80,763,738 | 30,688,810 | 67,467,561 | 79,182,368 |
| Contingencies | ||||||||
| Guarantees | 18,942 | 27,161 | 151,660 | 6,889 | 6,506 | 5,018,307 | 2,797 | 5,232,262 |
| Acceptance | 2,615,760 | 2,403,046 | 607,234 | 53,625 | 77,310 | 7,500,795 | – | 13,257,770 |
| Performance bonds | 1,563,866 | 2,573,281 | 709,602 | 1,385,011 | 950,284 | 19,534 | – | 7,201,578 |
| Forward contracts | 7,243,553 | 16,137,790 | 2,068,220 | 4,221,152 | 17,717,145 | 16,546,837 | – | 63,934,697 |
| Documentary credit | 2,621,469 | 3,951,661 | 825,789 | 816,964 | 162,845 | 5,796,714 | – | 14,175,442 |
|
|
14,063,590 | 25,092,939 | 4,362,505 | 6,483,641 | 18,914,090 | 34,882,187 | 2,797 | 103,801,749 |
| Commitments | ||||||||
| Commitments in ordinary course of business – Commitments for unutilised credit facilities | 89,301,635 | – | – | – | – | – | – | 89,301,635 |
| Capital commitments | 889,386 | – | – | – | – | – | – | 889,386 |
| Total commitments | 90,191,021 | – | – | – | – | – | – | 90,191,021 |
| Total commitments and contingencies | 104,254,611 | 25,092,939 | 4,362,505 | 6,483,641 | 18,914,090 | 34,882,187 | 2,797 | 193,992,770 |
Maturity Gap Analysis of Foreign Currency Denominated Assets and Liabilities – USD
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years |
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| Total assets | 110,640 | 66,978 | 65,248 | 22,189 | 100,196 | 22,625 | 28,994 | 416,870 |
| Total liabilities | 45,554 | 113,760 | 88,473 | 173,957 | 90,735 | 34,367 | 30,558 | 577,404 |
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65,086 | (46,782) | (23,225) | (151,768) | 9,461 | (11,742) | (1,564) | (160,534) |
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2024 |
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years |
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| Total assets | 50,868 | 65,104 | 30,632 | 17,281 | 42,846 | 21,315 | 38,574 | 266,620 |
| Total liabilities | 35,828 | 84,630 | 83,754 | 127,518 | 94,860 | 49,094 | 26,161 | 501,845 |
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15,040 | (19,526) | (53,122) | (110,237) | (52,014) | (27,779) | 12,413 | (235,225) |
Sensitivity of Financial Assets and Financial Liabilities
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As at 31 December Bank |
2025 | ||||||||
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| Financial assets | |||||||||
| Cash and cash equivalents | 361,944 | – | – | – | – | – | – | 22,409,147 | 22,771,091 |
| Balances with Central Bank of Sri Lanka | – | – | – | – | – | – | – | 2,952,879 | 2,952,879 |
| Placement with banks | 33,146,960 | 3,498,538 | – | 315,982 | – | – | – | 481,432 | 37,442,912 |
| Derivative financial assets | – | – | – | – | – | – | – | 8,494,001 | 8,494,001 |
| Financial assets measured at fair value through profit or loss | 144,374 | 39,083 | 8,496 | 288,248 | 1,216,917 | 1,123,918 | – | 6,193,969 | 9,015,005 |
| Financial assets at amortised cost – Loans to and receivables from other customers | 245,874,451 | 25,649,324 | 28,492,796 | 34,908,276 | 48,765,586 | 45,812,626 | 50,942,894 | 30,478,292 | 510,924,245 |
| Financial assets Measured at fair value through other comprehensive income – Loans to and receivables from other customers | – | – | – | – | – | 4,619,866 | – | – | 4,619,866 |
| Financial assets at amortised cost – Debt and other instruments | 818,513 | 1,593,039 | 17,273,028 | 1,614,295 | 48,141,316 | 42,196,315 | 3,159,184 | – | 114,795,690 |
| Financial assets measured at fair value through other comprehensive income | 11,032,634 | 4,494,688 | 4,701,629 | 8,756,943 | 32,708,840 | 25,602,307 | 5,711,050 | 31,544,726 | 124,552,817 |
| Other assets | – | – | – | – | – | – | – | 6,198,600 | 6,198,600 |
| Total financial assets |
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Financial liabilities |
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| Due to banks | 1,000,000 | 7,741,250 | 3,096,500 | – | – | – | – | 534,561 | 12,372,311 |
| Derivative financial liabilities | – | – | – | – | – | – | – | 201,000 | 201,000 |
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Financial liabilities at amortised cost – Due to depositors |
160,619,459 | 89,883,351 | 70,035,342 | 110,288,958 | 76,005,678 | 5,256,471 | 5,312,132 | 47,357,540 | 564,758,931 |
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Financial liabilities at amortised cost – Due to other borrowers |
43,330,701 | 25,358,685 | 17,924,380 | 16,179,547 | 23,693,316 | 3,887,852 | 2,145,866 | 1,834,410 | 134,354,757 |
| Debt securities issued | – | 1,759,386 | – | – | 2,652,446 | 7,111,006 | – | 764,021 | 12,286,859 |
| Other liabilities | – | – | – | – | – | – | – | 8,298,358 | 8,298,358 |
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Subordinated term debt |
– | – | – | – | 192,833 | 7,945,230 | 54,770 | 1,170,466 | 9,363,299 |
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Total financial liabilities |
204,950,160 | 124,742,672 | 91,056,222 | 126,468,505 | 102,544,273 | 24,200,559 | 7,512,768 | 60,160,356 | 741,635,515 |
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Interest rate sensitivity gap |
86,428,716 | (89,468,000) | (40,580,273) | (80,584,761) | 28,288,386 | 95,154,473 | 52,300,360 | 48,592,690 | |
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As at 31 December Bank |
2024 |
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| Financial assets | |||||||||
| Cash and cash equivalents | 204,107 | – | – | – | – | – | – | 13,300,699 | 13,504,806 |
| Balances with Central Bank of Sri Lanka | – | – | – | – | – | – | – | 2,328,346 | 2,328,346 |
| Placements with banks | 10,457,186 | 297,677 | – | – | – | – | – | 474,629 | 11,229,492 |
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Derivative financial assets |
– | – | – | – | – | – | – | 9,643,442 | 9,643,442 |
| Financial assets measured at fair value through profit or loss | 61,447 | 23,116 | 6,593 | – | – | 1,737,540 | – | 5,587,322 | 7,416,018 |
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Financial assets at amortised cost – Loans to and receivables from banks |
1,500,338 | – | – | – | – | – | – | – | 1,500,338 |
| Financial assets at amortised cost – Loans to and receivables from other customers | 150,458,026 | 55,268,447 | 22,966,380 | 31,789,811 | 26,626,948 | 43,996,279 | 41,194,278 | 22,746,884 | 395,047,053 |
| Financial assets at amortised cost – Debt and other Instruments | 1,968,800 | 1,471,837 | 12,821,143 | 1,299,203 | 32,685,619 | 41,947,892 | 13,447,196 | – | 105,641,690 |
| Financial assets measured at fair value through other comprehensive income | 2,492,757 | 3,839,705 | 31,271,210 | 17,713,405 | 18,283,967 | 38,354,145 | 1,739,327 | 24,563,710 | 138,258,226 |
| Other assets | – | – | – | – | – | – | – | 4,946,528 | 4,946,528 |
| Total financial assets | 167,142,661 | 60,900,782 | 67,065,326 | 50,802,419 | 77,596,534 | 126,035,856 | 56,380,801 | 83,591,560 | 689,515,939 |
| Financial liabilities | |||||||||
| Due to banks | 7,135,609 | – | – | – | – | – | – | 13,865 | 7,149,474 |
| Derivative financial liabilities | – | – | – | – | – | – | – | 909,188 | 909,188 |
| Financial liabilities at amortised cost – Due to depositors | 134,139,528 | 87,771,237 | 77,848,272 | 80,629,995 | 51,304,888 | 15,645,061 | 98,395 | 17,715,804 | 465,153,180 |
| Financial liabilities at amortised cost – Due to other borrowers | 25,902,185 | 15,681,387 | 6,651,748 | 11,713,849 | 23,083,642 | 10,328,908 | 3,393,913 | – | 96,755,632 |
| Debt securities issued | – | – | 5,645,447 | – | 4,583,880 | 4,461,396 | – | – | 14,690,723 |
| Other liabilities | – | – | – | – | – | – | – | 7,441,320 | 7,441,320 |
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Subordinated term debt |
– | 5,635,605 | – | 4,318,000 | 280,448 | 7,945,230 | 54,771 | – | 18,234,054 |
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167,177,322 | 109,088,229 | 90,145,467 | 96,661,844 | 79,252,858 | 38,380,595 | 3,547,079 | 26,080,177 | 610,333,571 |
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sensitivity gap |
(34,661) | (48,187,447) | (23,080,141) | (45,859,425) | (1,656,324) | 87,655,261 | 52,833,722 | 57,511,383 | |