INTERIM FINANCIAL STATEMENTS · was 101.7% as of end 2018. Furthermore, effective balance sheet management benefited from the sound strategic ties NDB ... Machines and extended their

INTERIM FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2018 NATIONAL DEVELOPMENT BANK PLC

CSE stock code: NDB.N0000 | Bloomberg: NDB SL | Reuter’s: NDB.CM

Table of Contents

Performance commentary 2

Financial statements published as per Rule 7.4 of the Listing Rules of the Colombo Stock Exchange 6

Important dates – FY 2018 financial results release 23

Corporate information 23

*The financial statements presented herewith are the unaudited financial statements for the financial year ended 31

December 2018 and are prepared in accordance with the Sri Lanka Financial Reporting Standards.

Press Release - NDB.N0000 - FY 2018

NDB records exceptional performance for financial year 2018 – Posts a

commendable pre- tax profit of LKR 10 bn

• Post tax profitability of LKR 5.7 bn – an increase of 30% over 2017

• Profit attributable to shareholders of LKR 5.3 bn – up by an impressive 51%

• Strong balance sheet growth of 23% to reach LKR 473 bn in total assets

• Accelerated growth in both gross loans and deposits by 27%

• Asset quality well ahead of the industry with a NPL ratio of 2.85%

• Cost to income ratio improved to 39.4% from 45.5% in 2017

National Development Bank PLC concluded the financial year 2018 on a high note, with exceptional

results reported on all fronts. Financial performance for the year reached a new high in the Bank’s

history with impressive profitability and strong balance sheet growth. Increase in business volumes as

well as enhanced operational efficiencies led to these sound results.

The year also marked the Bank and its Group companies being externally endorsed by a large number of

local and international awards. The pinnacle of these awards were the two much coveted global awards,

namely, the Bank of the Year as adjudged by The Banker Magazine UK and the Best Bank of Sri Lanka by

the Global Finance Magazine of USA for 2018, a rare feat achieved by a local bank.

Reflecting on the year passed, the Group Chief Executive Officer of NDB – Mr. Dimantha Seneviratne

stated that the performance of NDB in 2018 is affirmation of the Bank’s transition from a mid-sized

player to a bank of a higher league, with greater capacity, firmer resolve and power to perform. He

placed on record, the unity, passion and talents of the NDB Team, which has made a successful year

possible for the Bank. Mr. Seneviratne also added that, the Bank has raised the bar yet higher for 2019

and beyond, in pursuit of success and delivery of value to stakeholders and to make an impactful

contribution to the country’s economic growth.

Analysis of financial performance

The financial statements of the Bank and the Group have been prepared based on the new accounting

policies and methods which have been revised in line with the requirements of the SLFRS 9 -Financial

Instruments. The Bank complied with LKAS -39, Financial Instruments: Recognition and measurements

up to 31 December 2017, in the preparation of its annual financial statements. In order to recognize the

impact on the transition, the Bank has adopted the modified retrospective approach in line with

paragraph 7.2.14 - Transition of SLFRS 9-Financial Instruments. Accordingly the impact on the adoption

of SLFRS 9 on the financial performance as at 31 December 2017, has been reflected in the opening

equity balance as at 01 January 2018. The transition impact is arising predominantly due to impairment

charges of loans and other losses.

2


Total operating income

The Bank reported a net interest income [NII] of LKR 14.8 bn during the year, an impressive 38% growth

compared to the prior year. This is a considerable growth in the core, fund based revenue segment of

the Bank, achieved amidst a highly competitive interest rate environment which prevailed during the

year. Enhanced business volumes and an improved Net Interest Margin [NIM] propelled this NII growth.

The NIM improved up to 3.46% in 2018, from 3.0% in 2017.

Net fee and commission income was LKR 3.1 bn, up by 24% over the prior year, and supported the

overall revenue growth and strengthened the diversification of the revenue base to non-funded

activities. Net gains from trading grew by 15% to reach LKR 1.2 bn.

The resulting total operating income for the year was LKR 21.6 bn, a 33% growth compared to the

previous year.

Impairment charges for loans and other losses

Impairment charges for loans and other losses of the Bank increased by 163% to LKR 3.3 bn, within

which, individual impairment on loans and receivables was LKR 2.6 bn and collective impairment was

LKR 768 mn. The impairment charges for loans and other losses are a result of the precautionary

provisions made by the Bank for selective individually significant facilities, on a prudent basis, given the

challenging economic environment, based on a futuristic model, in comparison to the incurred loss

model adopted in the previous years.

Operating expenses

Operating expenses saw an increase of 16% to LKR 8.5 bn, the highest component being personnel

expenses, which amounted to 53% of total costs. This was mainly driven by the increase in talent

recruitment to support growing business and changes to staff remuneration. Other expense categories

increased only marginally, benefitting from a wide range of efficiency enhancing initiatives which were

implemented during 2018 as well as the latter part of 2017. Furthermore, the Bank was able to convert

more than 50% of its transactions to be routed via digitally enabled modes, thereby achieving

considerable cost savings and efficiencies.

These enhancements in efficiencies and the results of sound cost management strategies are well

reflected in the cost to income ratio [CIR] which improved from 45.5% for 2017 to 39.4% in 2018.

Profitability

As a result, NDB recorded the highest level of profitability in its 40 years of history, from its ordinary

course of business. This is affirmed with a 44% increase in core banking profit to LKR 9.1 bn. Operating

profit before taxes on financial services increased by 29% to LKR 9.8 bn. Profit after taxes, including the

3


newly introduced Debt Repayment Levy, was LKR 5.7 bn - an impressive increase of 30% over the prior

year. Profit attributable to shareholders, which includes profits from subsidiary companies crossed LKR 5

bn for the first time, to reach LKR 5.3 bn, positioning the NDB Group in a new league compared to its

peers.

Balance Sheet Growth and Business Expansion

NDB recorded 23% growth in balance sheet with a total asset base of LKR 473 bn, a quantum increase of

LKR 90 bn. The total asset base at the Group level was LKR 479 bn.

The growth in the asset base was mainly due to an equally impressive growth in the loans and advances

to customers. Gross Loans stood at LKR 353 bn as of the year end, a 27% growth and a quantum growth

of LKR 75 bn. This compares well with a quantum loan growth of LKR 45 bn recorded in 2017. This

expansion in the loan book is commendable, given the many internal as well as external challenges

which affected the economy during the year.

Customer deposits grew by 27% in 2018 to reach LKR 348 bn. This growth translates to a quantum

increase in deposits of LKR 74 bn. Accordingly, the Bank has effectively financed its incremental loan

growth with incremental deposits during the year. The CASA ratio of the Bank was well maintained at

22% at the end of the year, amidst an overall decline in the CASA ratio across the industry. The

incremental growth in CASA deposits was LKR 18 bn. The resulting loans to deposits ratio of the Bank

was 101.7% as of end 2018.

Furthermore, effective balance sheet management benefited from the sound strategic ties NDB

maintains with institutional lenders. During 2018, NDB secured a rupee facility equivalent to USD 35 mn

from the International Finance Corporation and USD 75 mn arranged by Commerze Bank AG at

competitive rates, which supported the business growth.

The non-performing loan ratio [NPL] denoting the quality of the loan portfolio increased to 2.85% from

1.83% in 2017. This increase in the NPL ratio reflects an industrywide trend, however well below the

industry average of 3.4% in 2018. The Bank’s prudent risk management practices in credit assessments,

proactive and focused monitoring of the portfolios and regionally driven remedial management have

been instrumental in preserving the asset quality and minimizing potential loan losses.

Business expansion during 2018 was also supported by significant investments in digital and physical

infrastructure for an enhanced customer experience. During 2018, NDB installed 27 Cash Recycle

Machines and extended their “branchless banking services” – Bank2U across 71 branches as a part of

the digital financial services strategy. In light of the deployment of digital banking avenues, the

expansion of the physical branches was moderated to one new branch opened at Katugasthota, whilst 5

branches were relocated for better customer experience. Services to high net worth customers was

further upgraded by opening three Privilege Banking Centres at strategic locations.

4


Capital management and investor returns

The Tier I capital ratio [minimum requirement – 7.875%] for the Bank and the Group stood at 9.2% and

10.4% respectively whilst the total capital ratio [minimum requirement – 11.875%] stood at 12.7% and

13.7% as at end 2018.

The steady growth in business and prospects of becoming a domestic systemically important bank [D-

SIB] coupled with industry developments such as BASEL III guidelines, impact of the adoption of SLFRS 9,

capital conservation buffer, Debt Repayment Levy, etc., require additional capital for the Bank. In

response to this demand for additional capital, the Bank concluded a Rights Issue during the last quarter

of 2018, resulting in LKR 3.4 bn being raised as Tier I capital. Furthermore, in December 2018 the Bank

also announced its plans to raise Tier II capital via a five year listed debenture issue, to support the

business growth.

The impressive financial results led to enhanced investor ratios. Return on equity [ROE] at the Bank level

was 17.78% [2017 – 16.27%], whilst the ROE of the NDB Group was 14.61% [2017 – 11.09%]. The Bank

Earnings per Share improved to LKR 30.92 from LKR 24.52 in 2017. The net book value per share at the

Group level was LKR 185.63 whilst same at the Bank level was LKR 166.94.

A year of strategic alignment and recognition

The Transformation 2020 strategy of NDB which was launched in 2017 entered a fresh phase in 2018.

The strategic blue-print was expanded to encompass a wider range of processes for efficiency

enhancement, implementation of a new women-centric market proposition with a dedicated product

portfolio and alignment of the Group companies to the overall strategy, with a bid to enhance synergies

across the Group.

All these strategic initiatives made considerable contribution in improving efficiencies of the Bank and

the Group companies and more dividends are expected to be reaped in the coming years.

During the year, NDB also obtained the EDGE Certification, which is the only global certification available

for gender equality at work place. EDGE stands for Economic Dividends for Gender Equality and NDB

takes pride in being the first and the only corporate in Sri Lanka to have obtained this Certification,

thereby join over 200 corporate across 50 countries and 23 industries.

5

Year Year Quarter Quarter Year Year Quarter Quarter

ended ended ended ended ended ended ended ended

31/12/2018 31/12/2017 Change 31/12/2018 31/12/2017 31/12/2018 31/12/2017 Change 31/12/2018 31/12/2017

Audited Audited

LKR '000 LKR '000 % LKR '000 LKR '000 LKR '000 LKR '000 % LKR '000 LKR '000

Gross Income 51,103,420 42,520,594 20 14,306,319 10,870,999 52,071,241 43,017,759 21 14,850,879 11,412,019

Interest Income 44,354,296 37,118,699 19 12,563,860 9,836,115 44,621,712 37,421,114 19 12,635,609 9,910,278

Interest Expenses 29,549,656 26,368,585 12 8,386,796 6,741,601 29,517,983 26,334,787 12 8,377,637 6,733,383

Net Interest Income 14,804,640 10,750,114 38 4,177,064 3,094,514 15,103,729 11,086,327 36 4,257,972 3,176,895

Net Fee and Commission Income 3,136,329 2,520,532 24 864,338 707,749 3,947,738 3,416,002 16 1,050,930 1,028,981

Net gain/(loss) from trading 1,218,338 1,063,944 15 356,984 270,809 1,218,338 1,063,944 15 356,985 270,809

Net gain/(loss) from financial investments at fair value Through

Profit or Loss (6,712) 8,935 (175) (40,795) (51,035) 56,194 97,155 (42) 821 (28,458)

Net gains/(losses) from derecognition of financial assets 383,564 513,710 (25) (36,931) 28,548 449,880 572,400 (21) (30,091) 29,800

Other operating income 2,017,605 1,294,774 56 598,862 78,813 1,777,379 447,144 297 836,625 200,609

Total Operating Income 21,553,764 16,152,009 33 5,919,523 4,129,398 22,553,258 16,682,972 35 6,473,242 4,678,636

Impairment charges

Individual Impairment 2,553,625 586,488 335 1,075,113 221,886 2,553,625 586,488 335 1,075,113 221,887 Collective Impairment 768,496 662,238 16 (165,378) 223,000 768,496 662,238 16 (165,378) 223,000 Other provision - charge/(release) (16,112) 9,829 (264) 30,870 (58,266) 167,737 41,571 303 135,740 14,129

3,306,009 1,258,554 163 940,605 386,621 3,489,858 1,290,297 170 1,045,475 459,016

Net operating income 18,247,755 14,893,455 23 4,978,918 3,742,777 19,063,400 15,392,675 24 5,427,767 4,219,620

Operating Expenses

Personnel Expenses 4,456,795 3,611,339 23 1,189,510 965,899 4,911,398 4,024,851 22 1,319,437 1,084,301

Depreciation and amortization 442,169 417,339 6 123,406 105,009 508,895 471,941 8 140,868 122,885

Other Expenses 3,592,763 3,317,357 8 1,016,810 803,385 3,959,287 3,704,143 7 1,113,966 901,710

Total operating expenses 8,491,726 7,346,035 16 2,329,726 1,874,293 9,379,580 8,200,935 14 2,574,271 2,108,896

Operating Profit Before VAT & NBT & DRL on Financial Services 9,756,029 7,547,420 29 2,649,192 1,868,484 9,683,820 7,191,740 35 2,853,496 2,110,724

Less: Value Added Tax (VAT on Financial services 1,744,172 1,364,410 28 476,672 344,000 1,744,172 1,364,410 28 476,672 344,000

National Building Tax (NBT) on Financial services 232,423 183,040 27 63,954 47,500 232,423 183,040 27 63,954 47,500

Debt repayment Levy 253,926 - 100 253,926 - 253,926 - 100 253,926 -

Operating Profit After Tax on Financial Services 7,525,508 5,999,970 25 1,854,640 1,476,984 7,453,299 5,644,290 32 2,058,944 1,719,224

Share of associate companies' profits/(losses) - - - - - - - - - -

Profit Before Taxation 7,525,508 5,999,970 25 1,854,640 1,476,984 7,453,299 5,644,290 32 2,058,944 1,719,224

Less :Taxation 1,849,116 1,648,341 12 206,834 434,891 2,049,312 2,211,987 (7) 277,983 843,776

Profit for the year 5,676,392 4,351,629 30 1,647,806 1,042,093 5,403,987 3,432,303 57 1,780,961 875,448

Profit Attributable to:

Equity Holders of the parent 5,676,392 4,351,629 30 1,647,806 1,042,093 5,264,168 3,489,752 51 1,691,446 969,806

Non Controlling Interests - - - - 139,819 (57,449) 343 89,515 (94,360)

5,676,392 4,351,629 30 1,647,806 1,042,093 5,403,987 3,432,303 57 1,780,961 875,446

Basic Earnings per share (in LKR) 30.92 24.52 26 8.98 5.87 28.67 19.66 46 9.21 5.46

Diluted Earnings per share (in LKR) 30.92 24.52 26 8.98 5.87 28.67 19.66 46 9.21 5.46

Year Year Quarter Quarter Year Year Quarter Quarter

ended ended ended ended ended ended ended ended

31/12/2018 31/12/2017 Change 31/12/2018 31/12/2017 31/12/2018 31/12/2017 Change 31/12/2018 31/12/2017

LKR '000 LKR '000 % LKR '000 LKR '000 LKR '000 LKR '000 % LKR '000 LKR '000

Profit for the year 5,676,392 4,351,629 30 1,647,806 1,042,093 5,403,987 3,432,303 57 1,780,961 875,446

Items that will be reclassified to Income Statement

Exchange differences on translation of foreign operations - - - - - 58,443 (371) 15,853 27,519 (3,326)

Net Gains/(losses) on Investments in debt Instruments (1,210,600) 798,120 (252) (151,284) 194,429 (1,206,781) 753,829 (260) (189,000) 168,644

Net Gains /(losses) on cash flow hedges 115,502 (70,339) 264 (283,833) 353,293 115,502 (70,339) 264 (283,833) 353,293

Less :Tax expense relating to items that will be reclassified to Income

Statements562,442 (308,218) 282 118,518 (27,163) 562,442 (308,218) 282 118,518 (27,163)

A (532,657) 419,564 (227) (316,599) 520,558 (470,395) 374,901 (225) (326,796) 491,447

Items that will not be reclassified to Income Statement - - - - -

Net Gains/(losses) on Investments in equity Instruments (148,875) (149,358) 0.32 (148,875) (149,358) (148,875) (149,358) 0.32 (148,875) (149,358)

Revaluation of Land & Buildings - 361,948 (100) - 361,948 30,186 378,100 (92) 30,186 378,100

Actuarial Gains/(losses) on defined benefit plans 76,492 (99,429) 177 76,492 (99,429) 74,874 (99,021) 176 74,874 (99,021)

Less :Tax expense relating to items that will not be reclassified to

Income Statements 2,308 (177,180) 101 2,308 (177,180) 2,308 (204,191) 101.13 2,308 (204,191)

B (70,075) (64,018) (9) (70,075) (64,018) (41,506) (74,469) 44 (41,506) (74,469)

Total Other Comprehensive Income after Tax (A + B) (602,732) 355,546 (270) (386,675) 456,540 (511,901) 300,432 (270) (368,302) 416,978

Total Comprehensive Income for the year 5,073,660 4,707,174 8 1,261,131 1,498,633 4,892,086 3,732,735 31 1,412,660 1,292,424

Attributable to:

Equity holders of the parent 5,073,660 4,707,174 8 1,261,131 1,498,633 4,738,927 3,790,030 25 1,317,464 1,387,531

Non Controlling Interests - - - - - 153,159 (57,295) 367 95,196 (95,105)

5,073,660 4,707,174 8 1,261,131 1,498,633 4,892,086 3,732,735 31 1,412,660 1,292,426

STATEMENT OF PROFIT OR LOSS

STATEMENT OF COMPREHENSIVE INCOME

Bank Group

NATIONAL DEVELOPMENT BANK PLC 6

Current Period Previous Period Current Period Previous Period

As at As at As at As at

31/12/2018 31/12/2017 Change 31/12/2018 31/12/2017 Change

(Audited) (Audited)

LKR '000 LKR '000 % LKR '000 LKR '000 %

Assets

Cash and cash equivalents 6,537,579 5,274,466 24 7,071,438 5,343,314 32

Balances with the Central Bank of Sri Lanka 15,546,386 15,364,920 1 15,546,386 15,364,920 1

Placements with banks 15,237,306 840,684 1,712 15,237,306 840,684 1,712

Derivative Financial Instruments 3,937,847 2,471,706 59 3,937,847 2,471,706 59

Financial Assets measured at fair value through profit or loss 1,947,242 1,216,439 60 4,052,409 2,659,883 52

Financial Assets at amortised cost -loans and receivables to other customers 344,478,289 274,029,448 26 344,551,363 274,078,788 26

Financial Assets at amortised cost - debt instruments 24,070,365 - 100 24,175,346 - 100

Financial Investments - Loans and receivables - 21,171,508 (100) - 23,316,328 (100)

Financial Assets measured at fair value through

Other comprehensive income 52,891,998 - 100 54,388,952 - 100

Financial Investments - Available for sale - 52,620,584 (100) - 52,975,690 (100)

Financial Investments - Held to maturity - 3,524,051 (100) - 4,077,096 (100)

Investments -Held for sale - 18,526 (100) - 33,302 (100)

Investments in subsidiary companies 2,166,714 2,106,021 3 - - -

Investment Property - - 2,110,661 1,894,848 11

Intangible assets 379,896 384,369 (1) 396,742 397,053 (0)

Property, plant & equipment 2,569,874 2,356,679 9 3,144,359 2,917,017 8

Deferred tax Assets 982,485 - 100 982,485 - 100

Other assets 2,347,642 1,693,641 39 2,932,641 2,274,809 29

Total assets 473,093,622 383,073,042 23 478,527,935 388,645,438 23

Liabilities

Due to Banks 15,047,479 20,236,719 (26) 15,047,479 20,236,719 (26)

Derivative Financial Instruments 2,906,572 936,754 210 2,906,572 936,754 210

Financial Liabilities at amortised cost -due to depositors 347,511,223 273,369,023 27 347,169,564 273,041,417 27

Financial Liabilities at amortised cost

- due to debt securities holders 6,394,211 8,719,243 (27) 6,382,024 8,719,243 (27)

- due to other borrowers 37,040,989 19,387,802 91 37,040,989 19,387,802 91

Debt securities issued 16,811,808 19,336,855 (13) 16,811,808 19,336,855 (13)

Retirement benefit obligations 408,308 363,138 12 408,308 460,080 (11)

Current Tax Liabilities 3,077,151 1,578,447 95 3,147,224 1,575,091 100

Deferred Tax Liabilities - 1,371,659 (100) 471,281 1,796,492 (74)

Other liabilities 8,708,014 8,963,364 (3) 8,923,343 9,104,809 (2)

Dividends payable 78,133 72,203 8 78,133 72,203 8

Total liabilities 437,983,889 354,335,206 24 438,386,725 354,667,465 24

Equity

Stated Capital (Bank & Group - 210,317,117 shares ) 6,469,323 2,208,520 193 6,469,323 2,208,520 193

Statutory Reserve Fund 1,636,479 1,336,479 22 1,636,479 1,336,479 22

General Reserve 5,805,707 5,805,707 - 5,805,707 5,805,707 -

Retained Earnings 21,077,883 18,585,255 13 24,892,108 22,775,440 9

Other Reserves 120,342 801,874 (85) 238,556 886,081 (73)

Total shareholders' equity 35,109,734 28,737,835 22 39,042,173 33,012,227 18

Non Controlling Interests - - - 1,099,037 965,746 14

Total Equity 35,109,734 28,737,835 22 40,141,210 33,977,973 18

Total liabilities and equity 473,093,622 383,073,042 23 478,527,935 388,645,438 23

Net Book Value Per Share (LKR) 166.94 167.58 (0) 185.63 192.51 (4)

Contingent liabilities and commitments 288,882,867 269,160,399 7 289,758,239 269,877,849 7

Memorandum Information

Number of Employees 2,494 2,169

Number of Branches 108 107

Certification:

We hereby certify that the above financial statements are in compliance with the requirements of the Companies Act No. 07 of 2007.

(Sgd.)

Suvendrini Muthukumarana

Acting Group Chief Financial Officer/ Assistant Vice president - Finance & Planning

We the undersigned, being the Chairman and the Chief Executive Officer of National Development Bank PLC certify jointly that:

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

(b) The information contained in these statements have been extracted from the unaudited financial statements of the Bank.

(Sgd.) (Sgd.)

Ananda.W. Atukorala Dimantha Seneviratne

Director/Chairman Director/Chief Executive Officer

07 February 2019

BANK Group

CONSOLIDATED STATEMENT OF FINANCIAL POSITION


Total

Statutory

Reserve Fund

Revaluation

Reserve

Share Based

Payment Reserves

Available For Sale

Reserves

Cash Flow Hedge

ReserveGeneral Reserve Retained Earnings Total

Equity

LKR '000 LKR '000 LKR '000 LKR '000 LKR '000 LKR '000 LKR '000 LKR '000 LKR '000 LKR '000 LKR '000

BANK

Balance as at 1 January 2017 1,246,479 1,246,479 853,456 13,841 (565,741) 56,148 5,805,707 16,088,681 24,745,050 - 24,745,050

Profit for the period - - - - - - - 4,351,629 4,351,629 - 4,351,629

Other Comprehensive Income before Tax - - 361,948 - 648,763 (70,339) - (99,429) 840,943 - 840,943

Tax on Other Comprehensive Income - - (174,143) - (308,218) - - (3,037) (485,398) - (485,398)

Total Comprehensive Income for the period - - 187,805 - 340,545 (70,339) - 4,249,162 4,707,173 - 4,707,174

Transactions with equity holders

Transfer to statutory reserve fund - 90,000 - - - - - (90,000) - -

Expiry of the ELCP option exercise period - - - (13,841) - - - - (13,841) (13,841)

Final Dividend for year 2016 -Scrip 962,041 - - - - - - (991,113) (29,072) - (29,072)

Final Dividend for year 2016 - Cash - - - - - - - (328,505) (328,505) (328,505)

Interim Dividend for year 2017 - Cash - - - - - - - (342,971) (342,971) (342,971)

Balance as at 31 December 2017 2,208,520 1,336,479 1,041,261 - (225,196) (14,191) 5,805,707 18,585,254 28,737,834 - 28,737,835

Balance as at 1 January 2018 2,208,520 1,336,479 1,041,261 - (225,196) (14,191) 5,805,707 18,585,255 28,737,835 - 28,737,835

Transitional adjustment on the implementation of SLFRS 9 - - - - - - - (2,457,013) (2,457,013) - (2,457,013)

Defferred tax on Transitional adjustments - - - - - - - 687,964 687,964 - 687,964

Restated Balance as at 1 January 2018 under SLFRS 9 2,208,520 1,336,479 1,041,261 - (225,196) (14,191) 5,805,707 16,816,206 26,968,785 - 26,968,785

Total Comprehensive Income for the period

Profit for the period - - - - - - - 5,676,392 5,676,392 - 5,676,392

Other Comprehensive Income before Tax - - - - (1,359,475) 115,502 - 76,492 (1,167,481) - (1,167,481)

Tax on Other Comprehensive Income - - - - 562,442 - - 2,308 564,750 - 564,750

Total Comprehensive Income for the period - - - - (797,033) 115,502 - 5,755,192 5,073,660 - 5,073,660


Issue of Shares 3,449,676 - - - - - - - 3,449,676 - 3,449,676

Transfer to statutory reserve fund - 300,000 - - - - - (300,000) - - -

Final Dividend for year 2017- Scrip 811,127 - - - - - - (857,429) (46,302) - (46,302)

Final Dividend for year 2017- Cash - - - - - - - (336,087) (336,087) - (336,087)

Balance as at 31 December 2018 6,469,323 1,636,479 1,041,261 - (1,022,229) 101,311 5,805,707 21,077,881 35,109,733 - 35,109,734

STATEMENT OF CHANGES IN EQUITY

For the year ended 31 DecemberStated Capital

Non Controlling

Interests

Other Reserves


Total

Statutory

Reserve Fund

Revaluation

Reserve

Share Based

Payment Reserves

Available For Sale

Reserves

Cash Flow Hedge

ReserveGeneral Reserve Retained Earnings Total

Equity

LKR '000 LKR '000 LKR '000 LKR '000 LKR '000 LKR '000 LKR '000 LKR '000 LKR '000 LKR '000 LKR '000

GROUP

Balance as at 1 January 2017 1,246,479 1,246,479 969,795 13,841 (542,587) 56,148 5,805,707 21,140,725 29,936,587 1,076,709 31,013,296

Profit for the period - - - - - - - 3,489,752 3,489,752 (57,449) 3,432,303

Other Comprehensive Income before Tax - - 378,100 - 604,471 (70,339) - (99,546) 812,686 154 812,840

Tax on Other Comprehensive Income - - (211,241) - (298,266) - - (2,902) (512,409) - (512,409)

Total Comprehensive Income for the period - - 166,859 - 306,205 (70,339) - 3,387,304 3,790,029 (57,295) 3,732,735

Transactions with equity holders -


Expiry of the ELCP option exercise period - - - (13,841) - - - - (13,841) - (13,841)

Final Dividend for year 2016 -Scrip 962,041 - - - - - - (991,113) (29,072) (53,668) (82,740)

Final Dividend for year 2016 - Cash - - - - - - - (328,505) (328,505) - (328,505)

Interim Dividend for year 2017 - Cash - - - - - - - (342,971) (342,971) - (342,971)

Balance as at 31 December 2017 2,208,520 1,336,479 1,136,654 - (236,382) (14,191) 5,805,707 22,775,440 33,012,227 965,746 33,977,973

Balance as at 1 January 2018 2,208,520 1,336,479 1,136,654 - (236,382) (14,191) 5,805,707 22,775,440 33,012,227 965,746 33,977,973

Transitional adjustment on the implementation of SLFRS 9 - - - - - - - (2,456,275) (2,456,277) 2 (2,456,275)

Defferred tax on Transitional adjustments - - - - - - - 688,663 688,663 - 688,663

Restated Balance as at 1 January 2018 under SLFRS 9 2,208,520 1,336,479 1,136,654 - (236,382) (14,191) 5,805,707 21,007,828 31,244,613 965,748 32,210,361

Total Comprehensive Income for the period

Profit for the period - - - - - - - 5,264,168 5,264,168 139,819 5,403,987

Other Comprehensive Income before Tax - - 30,186 - (1,355,656) 115,502 - 119,980 (1,089,988) 13,337 (1,076,651)

Tax on Other Comprehensive Income - - - - 562,442 - - 2,308 564,750 - 564,750

Total Comprehensive Income for the period - - 30,186 - (793,214) 115,502 - 5,386,456 4,738,930 153,156 4,892,086


Issue of Shares 3,449,676 - - - - - - - 3,449,676 - 3,449,676

Adjustment due to changes in group companies - - - - - - - (8,661) (8,661) 30,660 21,999


Final Dividend for year 2017- Scrip 811,127 - - - - - - (857,429) (46,302) (46,302)

Final Dividend for year 2017- Cash - - - - - - - (336,087) (336,087) (50,525) (386,612)

Balance as at 31 December 2018 6,469,323 1,636,479 1,166,840 - (1,029,596) 101,311 5,805,707 24,892,108 39,042,172 1,099,037 40,141,210

For the year ended 31 DecemberStated Capital

Non Controlling

Interests

STATEMENT OF CHANGES IN EQUITY

Other Reserves


For the year ended 31 December 2018 2017 2018 2017

LKR '000 LKR '000 LKR '000 LKR '000

CASH FLOWS FROM OPERATING ACTIVITIES

Interest received 40,951,417 37,419,186 41,096,318 37,731,389

Fee based income received 3,165,779 2,520,532 4,068,512 3,260,952

Dividend income received 47,034 92,177 123,146 119,119

Other Operating income received 2,943,489 1,606,826 3,099,789 1,626,502

Interest paid (28,022,485) (24,292,670) (28,031,189) (24,300,757)

Personnel costs paid (4,361,633) (3,519,151) (4,704,092) (3,747,676)

Other expenses paid (3,595,459) (3,193,195) (4,011,827) (3,603,669)

Operating Profit before changes in operating assets and liabilities 11,128,141 10,633,705 11,640,657 11,085,860

(Increase )/decrease in operating assets

Financial Assets at amortised cost -loans and receivables to other customers (71,117,148) (59,719,008) (71,117,148) (59,727,740)

Net (increase)/decrease in other assets (4,454,016) (328,380) (4,412,814) (364,477)

(Increase )/decrease in operating liabilities

Financial liabilities at amortised cost - due to depositors 72,511,339 66,892,475 72,511,339 66,892,475

Net increase/(decrease) in other liabilities 652,093 (4,578,994) 595,005 (4,575,923)

Net cash generated from operating activities before taxation 8,720,409 12,899,798 9,217,039 13,310,196

Tax on Financial Services paid (2,125,030) (1,631,150) (2,125,030) (1,631,150)

Income taxes paid (1,451,843) (821,084) (1,502,290) (994,077)

Net cash provided by/(used in) operating activities 5,143,537 10,447,566 5,589,719 10,684,969

CASH FLOWS FROM INVESTING ACTIVITIES

Net changes in financial Investments (986,022) 545,200 (375,520) 1,509,400

Net cash flow from disposal of subsidiaries/associates 23,400 - 23,400 -

Dividends received from investments in subsidiaries 521,485 1,006,702 - -

Purchase of property, plant & equipment (936,637) (588,010) (986,260) (736,476)

Proceeds from sale of property, plant & equipment 40,690 21,027 40,690 22,224

Net cash (used in) from investing activities (1,337,084) 984,920 (1,297,689) 795,148

CASH FLOWS FROM FINANCING ACTIVITIES

Issue of shares 3,449,676 - 3,499,677 -

Repayment of subordinated debts (2,771,590) (326,700) (2,771,590) (326,700)

Interest paid on subordinated debts (2,032,762) (2,061,507) (2,032,762) (2,061,507)

Repayment of other borrowings (7,035,039) (26,459,112) (7,035,039) (26,430,039)

Proceeds from borrowings 20,800,923 19,413,133 20,800,923 19,413,133

Dividends paid to non-controlling interests - - (70,568) (99,740)

Dividends paid to shareholders of the Bank (376,459) (649,206) (376,459) (649,206)

Net cash provided by /(used in) financing activities 12,034,749 (10,083,393) 12,014,182 (10,154,059)

NET INCREASE IN CASH

AND CASH EQUIVALENTS 15,841,201 1,349,093 16,306,212 1,296,985

CASH AND CASH EQUIVALENTS

AT THE BEGINNING OF THE YEAR 21,480,070 20,130,977 21,548,918 20,251,933

CASH AND CASH EQUIVALENTS

AT THE END OF THE PERIOD 37,321,271 21,480,070 37,855,130 21,548,918

RECONCILIATION OF CASH AND CASH EQUIVALENTS

Cash and cash equivalents 6,537,579 5,274,466 7,071,438 5,343,314

Balances with the Central Bank of Sri Lanka 15,546,386 15,364,920 15,546,386 15,364,920

Placements with banks 15,237,306 840,684 15,237,306 840,684

37,321,271 21,480,070 37,855,130 21,548,918

BANK GROUP

STATEMENT OF CASH FLOW


For the year ended 31 December

2018 2017 2018 2017 2018 2017 2018 2017 2018 2017

LKR '000 LKR '000 LKR '000 LKR '000 LKR '000 LKR '000 LKR '000 LKR '000 LKR '000 LKR '000

Revenue

Interest Income 44,354,296 37,118,699 235,381 268,617 - - - - 44,589,677 37,387,316

Net Fee and Commission Income 3,136,329 2,520,532 496,360 460,569 152,611 143,700 124,848 129,784 3,910,148 3,254,586

Foreign exchange profit 1,218,338 1,063,944 - - - - - - 1,218,338 1,063,944

(6,712) 8,935 62,906 88,220 - - - - 56,194 97,155

Net gains/(losses) from derecognition of financial assets 383,564 513,710 66,316 58,690 - - - - 449,880 572,400

Other Income 1,496,121 288,072 65,445 159,072 215,814 118,848 - - 1,777,379 565,992

Total revenue from external customers 50,581,936 41,513,892 926,408 1,035,168 368,425 262,548 124,848 129,784 52,001,616 42,941,392

Inter-segment Revenue - - 12,725 9,590 56,900 66,777 - - 69,625 76,367

Total Revenue 50,581,936 41,513,892 939,132 1,044,758 425,325 329,325 124,848 129,784 52,071,241 43,017,759

Impairment (charge )/reversal for

loans & other losses (3,322,121) (1,248,726) (167,737) (41,571) - - - - (3,489,858) (1,290,297)

Segment expenses (38,009,710) (33,680,819) (760,245) (748,448) (22,860) (15,252) (104,749) (91,202) (38,897,564) (34,535,722)

Total segment expenses (41,331,830) (34,929,545) (927,982) (790,019) (22,860) (15,252) (104,749) (91,202) (42,387,422) (35,826,018)

Segment results 9,250,105 6,584,347 11,150 254,739 402,465 314,073 20,099 38,582 9,683,820 7,191,741

Share of associate companies' profit before taxation - - - - - - - - - -

Taxation 2,049,312 2,211,987

VAT on financial services 2,230,521 1,547,450

Profit after taxation 5,403,987 3,432,304

Other information

Segment assets 473,092,532 383,068,679 2,936,661 3,319,579 2,405,461 2,146,142 93,277 77,736 478,527,931 388,612,136

Investments -Held for sale - - - - - - - 33,302 - 33,302

Consolidated total assets 478,527,931 388,645,438

Segment liabilities 437,633,290 354,000,010 187,183 149,119 552,266 510,249 13,986 8,085 438,386,725 354,667,465

Consolidated total liabilities 438,386,725 354,667,465

Segmental Cash flows

Cash flows from operating activities 5,143,537 11,454,247 391,232 (834,301) 53,626 70,653 1,325 (5,630) 5,589,719 10,684,969

Cash flows from investing activities (1,337,084) (21,763) (257,832) 825,577 310,744 (8,666) (13,517) - (1,297,689) 795,148

Cash flows from financing activities 12,034,749 (10,083,391) 19,714 (47,258) (40,272) (40,292) (9) (12,190) 12,014,182 (10,183,131)

Net gain/(loss) from financial investments at fair value Through Profit

or Loss

Property Investment Others

SEGMENTAL ANALYSIS- GROUP

ConsolidatedBanking Capital Markets


At fair value through At amortised At fair value through Others Held for sale Total

ASSETS profit or loss cost Other comprehensive income

Cash and cash equivalents - 6,537,579 - - - 6,537,579

Balances with the Central Bank of Sri Lanka - 15,546,386 - - - 15,546,386

Placements with banks - 15,237,306 - - - 15,237,306

Derivative Financial Instruments 3,937,847 - - - - 3,937,847

Financial Assets measured at fair value through profit or loss 1,947,242 - - - - 1,947,242

Financial Assets at amortised cost -loans and advances - 344,478,289 - - - 344,478,289

Financial Assets at amortised cost - debt instruments - 24,070,365 - - - 24,070,365


Other comprehensive income - - 52,891,998 - - 52,891,998

Other Financial Assets - 21,756 - - - 21,756

Total Financial Assets 5,885,089 405,891,682 52,891,998 - - 464,668,767

At fair value through Amortized cost Others Total

LIABILITIES profit or loss

Due to Banks - 15,047,479 - 15,047,479

Derivative Financial Instruments 2,906,572 - - 2,906,572

Financial Liabilities at amortised cost -due to depositors - 347,511,223 - 347,511,223


- due to debt securities holders - 6,394,211 - 6,394,211

- due to other borrowers - 37,040,989 - 37,040,989

Debt securities issued - 16,811,808 - 16,811,808

Other Financial Liabilities - 2,751,011 - 2,751,011

Total Financial Liabilities 2,906,572 425,556,722 - 428,463,294

At fair value through At amortised At fair value through Others Held for sale Total

ASSETS profit or loss cost Other comprehensive income

Cash and cash equivalents - 7,071,438 - - - 7,071,438

Balances with the Central Bank of Sri Lanka - 15,546,386 - - - 15,546,386

Placements with banks - 15,237,306 - - - 15,237,306

Derivative Financial Instruments 3,937,847 - - - - 3,937,847

Financial Assets measured at fair value through profit or loss 4,052,409 - - - - 4,052,409

Financial Assets at amortised cost -loans and advances - 344,551,363 - - - 344,551,363

Financial Assets at amortised cost - debt instruments - 24,175,346 - - - 24,175,346


Other comprehensive income - - 54,388,952 - - 54,388,952

Other Financial Assets - 21,756 - - - 21,756

Total Financial Assets 7,990,256 406,603,595 54,388,952 - - 468,982,803

At fair value through Amortized cost Others Total

LIABILITIES profit or loss

Due to Banks - 15,047,479 - 15,047,479

Derivative Financial Instruments 2,906,572 - - 2,906,572

Financial Liabilities at amortised cost -due to depositors - 347,169,564 - 347,169,564


- due to debt securities holders - 6,382,024 - 6,382,024

- due to other borrowers - 37,040,989 - 37,040,989

Debt securities issued - 16,811,808 - 16,811,808


Total Financial Liabilities 2,906,572 425,202,875 - 428,109,446

MEASUREMENT OF FINANCIAL INSTRUMENTS AS AT 31 DECEMBER 2018 - BANK (LKR '000)

MEASUREMENT OF FINANCIAL INSTRUMENTS AS AT 31 DECEMBER 2018 - GROUP (LKR '000)


Held for Held to Maturity Loans and Available for Others Held for sale Total

ASSETS Trading Receivables Sale

Cash and cash equivalents - - 5,274,466 - - - 5,274,466

Balances with the Central Bank of Sri Lanka - - 15,364,920 - - - 15,364,920

Placements with banks - - 840,684 - - - 840,684

Derivative Financial Instruments 2,471,706 - - - - - 2,471,706

Financial Assets - Held for trading 1,216,439 - - - - - 1,216,439

Loans and Receivables to other customers - - 274,029,448 - - - 274,029,448

Financial Investments - Loans and receivables - - 21,171,508 - - - 21,171,508

Financial Investments - Available for sale - - - 52,620,584 - - 52,620,584

Financial Investments - Held to maturity - 3,524,051 - - - - 3,524,051

Other Financial Assets - - 19,565 - - - 19,565

Total Financial Assets 3,688,145 3,524,051 316,700,591 52,620,584 - - 376,533,371

Held for Amortized cost Others Total

LIABILITIES Trading

Due to Banks - 20,236,719 - 20,236,719

Derivative Financial Instruments 936,754 - - 936,754

Due to other Customers - 273,369,023 - 273,369,023

Debt Securities issued and other borrowed funds - - - -

Subordinated Term debts - 19,336,855 - 19,336,855


Total Financial Liabilities 936,754 315,995,896 - 316,932,650

Held for Held to Maturity Loans and Available for Others Total

ASSETS Trading Receivables Sale Held for sale

Cash and cash equivalents - - 5,343,314 - - - 5,343,314

Balances with the Central Bank of Sri Lanka - - 15,364,920 - - - 15,364,920

Placements with banks - - 840,684 - - - 840,684

Derivative Financial Instruments 2,471,706 - - - - - 2,471,706

Financial Assets - Held for trading 2,659,883 - - - - - 2,659,883

Loans and Receivables to banks - - - - - - -

Loans and Receivables to other customers - - 274,078,788 - - - 274,078,788

Financial Investments - Loans and receivables - - 23,316,328 - - - 23,316,328

Financial Investments - Available for sale - - - 52,975,690 - - 52,975,690

Financial Investments - Held to maturity - 4,077,096 - - - - 4,077,096

Other Financial Assets - - 446,909 - - - 446,909

Total Financial Assets 5,131,589 4,077,096 319,390,944 52,975,690 - - 381,575,318

Held for Amortized cost Others Total

LIABILITIES Trading

Due to Banks - 20,236,719 - 20,236,719

Derivative Financial Instruments 936,754 - - 936,754

Due to other Customers - 273,041,417 - 273,041,417

Debt Securities issued and other borrowed funds - - - -

Subordinated Term debts - 19,336,855 - 19,336,855


Total Financial Liabilities 936,754 315,700,299 - 316,637,052

MEASUREMENT OF FINANCIAL INSTRUMENTS AS AT 31 DECEMBER 2017 - BANK (LKR '000)

MEASUREMENT OF FINANCIAL INSTRUMENTS AS AT 31 DECEMBER 2017 - GROUP (LKR '000)


Notes to the Financial Statements

1 The figures are extracted from the unaudited financial statements.

2

The impact on the transition to SLFRS 9, Financial Instruments on the assets, liabilities and retained earnings of the Bank and the Group are given below.

3

4

5

6

7

8 There are no other events that require adjustment to the Financial Statement or disclosure in the Financial Statements that has occurred subsequent to the

date of the Statement of the Financial Position of the Bank and the Group .

NDB Capital Limited is a fully fledged merchant bank based in Bangladesh and it was a 77.8% owned subsidiary of the Bank. As per the current Bangladesh SEC (BSEC) regulations ,the

Company issued 117,904 ordinary shares in October 2018 to meet the minimum capital requirements of the company .However as per the restructuring plan of the NDB Group which

facilitate optimizing synergies within the investment banking cluster by way of effective utilization of resources with the NDB Group, NDB Bank decided to renounce its rights entitlement

for 90,600 ordinary shares in favour of NDB Investment Bank Ltd (NDBIB).

Accordingly NDB Investment Bank Ltd applied for the rights renounced by the Bank and after the right issue , the shareholding of NDB Bank decreased up to 41.76% and NDBIB and

minority holding percentages are 42.42% and 15.82% respectively, as a result of that ,the final stake of NDB Group increased up to 84.18%.

The financial statements of the Bank and the Group have been prepared based on the new accounting policies and methods which have been revised in line with the requirements of

the SLFRS 9 -Financial Instruments. The Bank complied with LKAS -39 ,Financial Instruments :Recognition and measurements up to 31 December 2017,in the preparation of its annual

Financial Statements. In order to recognise the impact on the transition, the Bank has adopted the modified retrospective approach in line with paragraph 7.2.14 Transition, of SLFRS 9-

Financial Instruments .Accordingly the impact on the adoption of SLFRS 9 on the Financial performance as at 31 December 2017,has been reflected in the opening equity balance as at 01

January 2018.

On 20 February 2018, the Bank declared a final dividend of LKR 7.00 per share comprising of a cash dividend of LKR 2.00 per share and a scrip dividend of LKR 5.00 per share for the

financial year ended 31 December 2017.

The Earning Per Share of the Bank and the Group for the comparative year and the quarter have been restated to account for the effect of scrip dividends paid for the year 2017 in June

2018 .The reported Earning Per Share in the Annual Report of the year 2017 was LKR 25.38 and LKR 20.35 for the Bank and the Group respectively .

The comparative figures for the year ended 31 December 2017 remains as audited and published and previous year's figures and phrases have been re-arranged wherever necessary to

conform to the current year's presentation. These Financial Statements also and comply with Sri Lanka Accounting Standard 34- "Interim Financial Reporting".

As per the Section 66(2) of the Inland Revenue Act, No. 24 of 2017 (new Act) banks are allowed to claim CBSL provisions subject to the discretion of the Commissioner General of Inland

Revenue. The Department of Inland Revenue (IRD) finalized the income tax assessments issued against the Bank for previous years of assessments during the year 2018 in accordance

with the above mentioned provision of the new Act.

Based on the finalization of the income tax liabilities of the previous years of assessments by the IRD during the year 2018 and the subsequent clarifications received from the IRD on the

claimability of the impairment provisions, the Bank computed the deferred tax asset on impairment as at 31.12.2018.

Accordingly, deferred tax asset amounting to LKR.1,007.4 Mn has been recorded to the Statement of Profits or Loss for the year ended 31.12.2018. The deferred tax asset on the day 1

adjustment of impairment provisions amounting to LKR. 687.95Mn has been recorded through equity as an opening balance adjustment.

The Bank concluded a Rights Issue during the last quarter of 2018, whereby 32,854,055 ordinary voting shares were issued at LKR 105/- per share, resulting in LKR 3.4 bn being raised as

Tier I capital. Accordingly the stated capital of the Bank as at 31 December 2018 increased to LKR 6,469 mn.


9. The impact on reclassification and remeasurement of assets and liabilities on the adoption of SLFRS 9 - Financial Instruments is given below

Bank Re-classification

Assets Category Amount ECL Other Amount Category

Financial Assets

Cash and cash equivalents Loans & Receivables 5,274,466 - (483) - 5,273,983 Amortised Cost

Balances with the Central Bank of Sri Lanka Loans & Receivables 15,364,920 - - - 15,364,920 Amortised Cost

Placements with banks Loans & Receivables 840,684 - (164) - 840,520 Amortised Cost

Derivative Financial Instruments Fair Value Through Profit & Loss 2,471,706 - - - 2,471,706 Fair Value through Profit and Loss

Financial Assets - Held for trading Fair Value Through Profit & Loss 1,216,439 - - - 1,216,439 Fair Value through Profit and Loss

Loans and Receivables to banks Loans & Receivables 15,478 - - - 15,478 Amortised Cost

Loans and Receivables to other customers Loans & Receivables 274,013,970 - (2,338,407) - 271,675,563 Amortised Cost

Financial Investments - Loans and receivables Loans & Receivables 21,171,508 (21,171,508) - - - Amortised Cost

Financial Investments - Available for sale Available for Sale 52,620,584 (52,620,584) - - -

Fair Value through Other

Comprehensive Income

Debt Instruments at Fair value through other comprehensive income N/A N/A 51,064,941 - - 51,064,941



Equity Instruments at Fair value through other comprehensive income N/A N/A 1,555,643 1,555,643



Financial Investments - Held to maturity Held to Maturity 3,524,051 (3,524,051) - - - Amortised Cost

Debt Instruments at amortised cost N/A N/A 24,695,559 (117,959) - 24,577,600 Amortised Cost

Non Financial Assets

Investments -Held for sale N/A 18,526 - - - 18,526 N/A

Investments in subsidiary companies N/A 2,106,021 - - - 2,106,021 N/A

Investment Property N/A - - - - - N/A

Intangible assets N/A 384,369 - - - 384,369 N/A

Property, plant & equipment N/A 2,356,679 - - - 2,356,679 N/A

Deferred tax Assets N/A - 687,964 687,964

Other assets N/A 1,693,641 - - - 1,693,641 N/A

Total Assets 383,073,042 - (1,769,049) 381,303,992

Liabilities

Financial Liabilities

Due to Banks Other Financial Liabilities 20,236,719 - - - 20,236,719 Amortised Cost

Derivative Financial Instruments Fair Value Through Profit & Loss 936,754 - - - 936,754 Fair Value through Profit and Loss

Due to other Customers Other Financial Liabilities 273,369,023 - - - - Amortised Cost

Financial Liabilities at amortised cost -due to depositors Other Financial Liabilities - 273,369,023 Amortised Cost

Debt Securities issued and other borrowed funds Other Financial Liabilities 28,107,045 - - - - Amortised Cost


- due to debt securities holders Other Financial Liabilities - - - - 8,719,243 Amortised Cost

- due to other borrowers Other Financial Liabilities - - - - 19,387,802 Amortised Cost

Subordinated Term Debts Other Financial Liabilities 19,336,855 - - - 19,336,855 Amortised Cost

Non Financial Liabilities

Retirement benefit obligations N/A 363,138 363,138 N/A

Current Tax Liabilities N/A 1,578,447 - - - 1,578,447 N/A

Deferred Tax N/A 1,371,659 - - - 1,371,659 N/A

Other liabilities N/A 8,963,364 - - - 8,963,364 N/A

Dividends payable N/A 72,203 - - - 72,203 N/A

Total liabilities 354,335,207 354,335,207

10. The Impact of transition to the SLFRS 9 -Financial Instruments on Equity is as follows:

Bank

LKR'000

Retained Earnings

Closing balance under LKAS 39 as at 31 December 2017 18,585,255

Reclassification adjustments in relation to adopting SLFRS 9 -

Recognition of Expected Credit Losses under SLFRS 9 for Loans and Receivable

to Customers (2,338,407)

Recognition of Expected Credit Losses under SLFRS 9 for Debt Instruments at

Amortised cost (118,606)

Deferred tax in relation to the above 687,964

Closing Balance as at 31 December 2017 as per SLFRS 09 16,816,206

Loan loss provision under LKAS 39

at 31 December 2017

Re-

Measurement

Expected Credit

Loss under SLFRS 9

as at 01 January

2018

LKR'000

Impairment allowance for

On Balance Sheet items

Loans and receivables as per LKAS 39 /Financial Assets at amortised cost

under SLFRS 9 4,787,097 1,761,512 6,548,609

Financial Investments -Held to Maturity /Loan and receivables as per LKAS 39

and Debt Instruments at amortised cost as per SLFRS 9 - 118,606 118,606

4,787,097 1,880,118 6,667,215

Off Balance Sheet Items

Financial Guarantees - 298 298

Letter of Credit for customers - 15,389 15,389

Other Commitments - 561,209 561,209

- 576,896 576,896

4,787,097 2,457,013 7,244,110

LKAS 39 Measurement Remeasurement SLFRS 9

11. The following table reconciles the aggregate opening Loan loss provision allowances under LKAS 39 and the provisions for loan and receivables and Financial investments, commitments and contingencies

under SLFRS 9 .


Group Re-classification

Assets Category Amount ECL Other Amount Category

Financial Assets

Cash and cash equivalents Loans & Receivables 5,343,314 - (483) - 5,342,831 Amortised Cost

Balances with the Central Bank of Sri Lanka Loans & Receivables 15,364,920 - - - 15,364,920 Amortised Cost

Placements with banks Loans & Receivables 840,684 - (164) - 840,520 Amortised Cost

Derivative Financial Instruments Fair Value Through Profit & Loss 2,471,706 - - - 2,471,706 Fair Value through Profit and Loss

Financial Assets - Held for trading Fair Value Through Profit & Loss 2,659,883 - - - 2,659,883 Fair Value through Profit and Loss

Loans and Receivables to banks Loans & Receivables 15,478 - - - 15,478 Amortised Cost

Loans and Receivables to other customers Loans & Receivables 274,063,310 - (2,338,407) - 271,724,903 Amortised Cost

Financial Investments - Loans and receivables Loans & Receivables 23,316,328 (23,316,328) - - - Amortised Cost

Financial Investments - Available for sale Available for Sale 52,975,690 (52,975,690) - - -



Debt Instruments at Fair value through other comprehensive income N/A N/A 51,422,261 (1,476) - 51,420,047



Equity Instruments at Fair value through other comprehensive income N/A N/A 1,555,643 1,555,643



Financial Investments - Held to maturity Held to Maturity 4,077,096 (4,077,096) - - - Amortised Cost

Debt Instruments at amortised cost N/A N/A 27,393,424 (117,959) - 27,276,203 Amortised Cost

Non Financial Assets

Investments -Held for sale N/A 33,302 - - - 33,302 N/A

Investments in subsidiary companies N/A - - - - - N/A

Investments in associate companies N/A - - - - - N/A

Investment Property N/A 1,894,848 - - - 1,894,848 N/A

Intangible assets N/A 397,053 - - - 397,053 N/A

Property, plant & equipment N/A 2,917,017 - - - 2,917,017 N/A

Deferred tax Assets N/A - - 688,663 688,663 N/A

Other assets N/A 2,274,809 - - - 2,274,809 N/A

Total Assets 388,645,438 2,214 (1,769,826) 386,877,826

LIABILITIES

Financial Liabilities

Due to Banks Other Financial Liabilities 20,236,719 - - - 20,236,719 Amortised Cost

Derivative Financial Instruments Fair Value Through Profit & Loss 936,754 - - - 936,754 FVPL

Due to other Customers Other Financial Liabilities 273,041,417 - - - - Amortised Cost

Financial Liabilities at amortised cost -due to depositors Other Financial Liabilities - - - - 273,041,417 Amortised Cost

Debt Securities issued and other borrowed funds Other Financial Liabilities 28,107,045 - - - - Amortised Cost


- due to debt securities holders Other Financial Liabilities - - - - 8,719,243 Amortised Cost

- due to other borrowers Other Financial Liabilities - - - - 19,387,802 Amortised Cost

Subordinated Term Debts Other Financial Liabilities 19,336,855 - - - 19,336,855 Amortised Cost

Non Financial Liabilities

Retirement benefit obligations N/A 460,080 460,080

Current Tax Liabilities N/A 1,575,091 - - - 1,575,091 N/A

Deferred Tax N/A 1,796,492 - - - 1,796,492 N/A

Other liabilities N/A 9,104,809 - - - 9,104,809 N/A

Dividends payable N/A 72,203 - - - 72,203 N/A

Total liabilities 354,667,465 354,667,465

The Impact of transition to SLFRS 9 on Equity is as follows:

Group

LKR'000

Retained Earnings

Closing balance under LKAS 39 as at 31 December 2017 22,775,440

Reclassification adjustments in relation to adopting SLFRS 9 2,214

Recognisition of Expected Credit Losses under SLFRS 9 for Loans and

Receivable to Customers (2,338,407)

Recognisition of Expected Credit Losses under SLFRS 9 for Debt Instruments at

Amortised cost and FVOCI (120,082)

Deferred tax in relation to the above 688,663

Closing Balance as at 31 December 2017 as per SLFRS 09 21,007,828

Loan loss provision under Re-

LKAS 39 at 31 December 2017 Measurement

LKR'000 LKR'000 LKR'000 LKR'000

On balance sheet items

Impairment allowance for Loans and receivables as per LKAS 39 4,787,097 1,761,512 6,548,609


and Debt Instruments at amortised cost as per SLFRS 9 - 118,606 118,606


and Debt Instruments at FVOCI as per SLFRS 9 - 1,476 1,476

4,787,097 1,881,594 6,668,691

Off balance Sheet Items

Financial Guarantees - 298 298

Letter of Credit for customers - 15,389 15,389

Other Commitments - 561,209 561,209

- 576,896 576,896

4,787,097 2,458,489 7,245,586

Expected Credit

Loss under SLFRS 9

as at 01 January

2018

The following table reconciles the aggregate opening Loan loss provision allowances under LKAS 39 and the provisions for loan and

receivables and Financial investment, commitments and contingencies under SLFRS 9 .

Group

LKAS 39 Measurement Remesurement SLFRS 9


Notes to the Financial Statements

12. ANALYSIS OF LOANS & ADVANCES,COMMITMENTS,CONTINGENCIES AND IMAIRMENT AS AT 31 DECEMBER 2018


12.1 Product wise Gross Loans and Receivables 31/12/2018 31/12/2017 31/12/2018 31/12/2017

LKR '000 LKR '000 LKR '000 LKR '000

By product-Domestic Currency

Term loans 86,364,492 67,875,639 86,364,494 67,875,639

Medium and short term loans 41,660,230 23,916,021 41,660,230 23,916,021

Overdrafts 51,786,306 43,928,966 51,759,437 43,881,140

Trade Finance 16,299,562 13,779,071 16,299,562 13,779,071

Consumer loans 29,071,486 23,280,986 29,071,486 23,280,986

Lease rentals receivable 20,688,421 15,719,450 20,688,421 15,719,450

Housing loans 12,906,879 10,256,059 12,906,879 10,256,059

Islamic Banking facilities 6,742,016 3,799,762 6,742,016 3,799,762

Credit cards 3,216,388 1,910,923 3,216,388 1,910,923

AF Loans 3,979,135 4,052,217 3,979,135 4,052,217

Staff loans 1,762,873 1,588,628 1,862,814 1,685,794

Pawning 411,063 185,402 411,063 185,402

Hire Purchase 78,685 317,815 78,685 317,815

PCI Debtors 259 15,478 259 15478

Sub total 274,967,796 210,626,417 275,040,870 210,675,756

By product-Foreign Currency

Overdrafts 2,622,767 3,046,895 2,622,767 3,046,895

Medium and short term loans 41,197,144 38,566,567 41,197,144 38,566,567

Trade Finance 30,544,902 24,432,290 30,544,902 24,432,290

Islamic Banking facilities 4,027,786 2,144,378 4,027,786 2,144,378

Housing loans 9,254 - 9,254 -

Sub total 78,401,853 68,190,130 78,401,853 68,190,130

Total 353,369,649 278,816,547 353,442,723 278,865,886


12.2 Product wise commitments and contingencies 31/12/2018 31/12/2017 31/12/2018 31/12/2017

By product- Domestic Currency LKR '000 LKR '000 LKR '000 LKR '000

Guarantees 20,800,622 18,973,137 20,754,671 18,927,186

Performance Bonds 6,246,936 5,514,842 6,246,936 5,514,842

Documentary Credits 158,559 195,213 158,559 195,213

Acceptances 46,456 45,675 46,456 45,675

Undrawn commitments 98,012,490 113,495,804 98,933,813 114,259,205

Sub Total 125,265,063 138,224,670 126,140,435 138,942,120

By product- Foreign Currency

Guarantees 7,725,000 5,148,749 7,725,000 5,148,749

Performance Bonds 7,003,860 2,827,359 7,003,860 2,827,359

Documentary Credits 9,748,480 13,027,517 9,748,480 13,027,517

Acceptances 11,078,610 6,722,451 11,078,610 6,722,451

Undrawn commitments 778,817 864,992 778,817 864,992

Sub Total 36,334,767 28,591,068 36,334,767 28,591,068

Total 161,599,831 166,815,738 162,475,203 167,533,188


31/12/2018 31/12/2017 31/12/2018 31/12/2017

LKR '000 LKR '000 LKR '000 LKR '000

Gross loans and advances (Note 12.1 ) 353,369,649 278,816,547 353,442,723 278,865,886

Commitments and Contingencies (Note 12.2 ) 161,599,831 166,815,738 162,475,203 167,533,188

(Less): Accumulated impairment under stage 1 1,801,385 - 1,801,385 1,801,385

Accumulated impairment under stage 2 2,120,098 - 2,120,098 2,120,098

Accumulated impairment under stage 3 4,969,877 - 4,969,877 4,969,877

(Less): Individual impairment (Note 12.4 ) - 1,556,979 - 1,556,979

Collective impairment (Note 12.4 ) - 3,230,119 - 3,230,119

Net value of loans and advances, commitments and contingencies 506,078,119 440,845,187 507,026,565 432,720,616

Bank Group

Bank Group


Bank Group

As at As at

31/12/2018 31/12/2018

12.3 Movement of impairment during the period LKR '000 LKR '000

Under stage 1

Balance at 1 January 1,707,882 1,707,882

Charge/(Write back) to Statement of Profit or Loss 93,503 93,503

Write-off during the period - -

Balance at 31 December 1,801,385 1,801,385

Under stage 2


Charge/(Write back) to Statement of Profit or Loss (68,959) (68,959)

Write-off during the period - -


Under stage 3


Charge/(Write back) to Statement of Profit or Loss 3,297,576 3,297,576

Write-off during the period (1,556,266) (1,556,266)


12.4 Movements in Individual and Collective Impairment during the period for Loans

and Receivables to Other Customers


31/12/2018 31/12/2017 31/12/2018 31/12/2017

LKR '000 LKR '000 LKR '000 LKR '000

Individual impairment

Balance at 01 January 1,556,979 3,028,934 1,556,979 3,028,934

Charge/(Write back) to Statement of Profit or Loss 2,552,052 340,330 2,552,052 340,330

Write-off during the period (1,317,858) (1,812,285) (1,317,858) (1,812,285)

Balance at 31 December 2,791,173 1,556,979 2,791,173 1,556,979

Collective impairment

Balance at 01 January 5,568,526 3,010,338 5,568,526 3,010,338

Charge/(Write back) to Statement of Profit or Loss 770,069 662,238 770,069 662,238

Write-off during the Period (238,408) (442,457) (238,408) (442,457)

Balance at 31 December 6,100,187 3,230,119 6,100,187 3,230,119

Total impairment 8,891,360 4,787,098 8,891,360 4,787,098

13. ANALYSIS OF DEPOSITS

Due to Other Customers - By product As at As at As at As at

31/12/2018 31/12/2017 31/12/2018 31/12/2017

LKR '000 LKR '000 LKR '000 LKR '000

By product-Domestic Currency

Demand deposits 18,593,207 17,334,004 18,609,526 17,328,827

Savings deposits 36,178,766 26,369,749 36,123,034 26,365,125

Time deposits 206,114,077 176,174,612 205,812,878 175,856,807

Other deposits 930,376 621,786 930,376 621,786

Sub total 261,816,426 220,500,151 261,475,814 220,172,545

By product- Foreign Currency

Demand deposits 4,299,977 2,587,245 4,299,977 2,587,245

Savings deposits 16,622,197 11,741,888 16,621,151 11,741,888

Time deposits 64,381,840 38,322,573 64,381,840 38,322,573

Other deposits 390,783 217,166 390,783 217,166

Sub total 85,694,797 52,868,872 85,693,750 52,868,872

Total 347,511,223 273,369,023 347,169,564 273,041,417

Bank Group

Bank Group



31/12/2018 31/12/2017 31/12/2018 31/12/2017

Regulatory Capital Adequacy (LKR ’000)

Common Equity Tier 1 31,773,652 24,424,734 36,783,817 29,859,223

Tier 1 Capital 31,773,652 24,424,734 36,783,817 29,859,223

Total Capital 43,667,590 38,304,758 48,172,297 43,189,555

Regulatory Capital Ratios (%)

Common Equity Tier 1 Capital Ratio (Minimum Requirement -6.375% (2017 - 5.75%)) 9.23 8.85 10.44 10.49

Tier 1 Capital Ratio (Minimum Requirement - 7.875% (2017-7.25%)) 9.23 8.85 10.44 10.49

Total Capital Ratio (Minimum Requirement - 11.875% (2017-11.25%)) 12.69 13.89 13.67 15.18

Regulatory Liquidity

Statutory Liquid Assets (LKR’000) 93,997,616 77,506,348 93,997,616 77,506,348

Statutory Liquid Assets Ratio (Minimum Requirement -20%)

Domestic Banking Unit (%) 20.87 22.13 20.87 22.13

Off-Shore Banking Unit (%) 24.48 24.01 24.48 24.01

Total stock of high quality liquid assets (LKR ' 000) - All currency 54,060,818 51,901,650 54,060,818 51,901,650

Liquidity Coverage Ratio (%) – Rupee (Minimum Requirement - 90% (2017-80% ) ) 168.74 214.35 168.74 214.35

Liquidity Coverage Ratio (%) – All Currency (Minimum Requirement -90% (2017-80%)) 215.99 154.50 215.99 154.50

Asset Quality

Gross Non-performing Advances Ratio (%) 2.85 1.83 2.85 1.83

Net Non-performing Advances Ratio (%) 1.98 0.94 1.98 0.94

Profitability

Earnings Per Share (LKR) 30.92 24.52 28.67 19.66

Return on Average Shareholders' Funds (%) 17.78 16.27 14.61 11.09

Return on Average Assets (%) 1.33 1.21 1.21 0.96

Net interest margin (%) 3.46 3.00 3.48 3.04

Debt Security - Related Ratios

Interest Cover (Times) 1.50 1.41 1.51 1.42

Debt to Equity (Times) 12.04 11.87 10.82 10.32

Selected Performance Indicators (As per regulatory Reporting)GROUPBANK


SHARE PRICE

As at 31/12/2018 31/12/2017

Number of shares 210,317,117 177,463,062

Last traded price (LKR) 106.80 136.40

For the quarter ended 31/12/2018 31/12/2017

Highest price per share (LKR) 112.00 142.00

Lowest price per share (LKR) 98.00 126.90

TOP 20 LARGEST SHARE HOLDERS OF NATIONAL DEVELOPMENT BANK PLC AS AT 31.12.2018

NAME NO OF SHARES %

1 EMPLOYEES PROVIDENT FUND 21,031,711 10.00%

2 BANK OF CEYLON NO. 1 ACCOUNT 17,587,870 8.36%

3 SRI LANKA INSURANCE CORPORATION LTD-GENERAL FUND 13,448,393 6.39%

4 SRI LANKA INSURANCE CORPORATION LTD-LIFE FUND 11,180,760 5.32%

5 DR. S. YADDEHIGE 9,185,790 4.37%

6 SOFTLOGIC LIFE INSURANCE PLC ACCOUNT NUMBER 03/LIFE SHAREHOLDERS FUND 8,771,675 4.17%

7 EMPLOYEES TRUST FUND BOARD 8,185,780 3.89%

8 PERPETUAL TREASURIES LIMITED 7,898,636 3.76%

9 RICHARD PIERIS AND CO LTD - ACCOUNT NO. 01 7,328,846 3.48%

10 BNYMSANV RE-LF RUFFER INVESTMENT FUNDS : LF RUFFER PACIFIC AND EMERGING MARKETS FUND 6,947,3053.30%

11 HATTON NATIONAL BANK PLC A/C NO 1 6,133,969 2.92%

12 PHOENIX VENTURES PRIVATE LIMITED 6,120,460 2.91%

13 SBI VEN HOLDINGS PTE LTD 5,371,628 2.55%

14 RUSH JAPAN CORPORATION 5,144,490 2.45%

15 MR. A.K. PATHIRAGE 4,086,426 1.94%

16 AYENKA HOLDINGS PRIVATE LIMITED 3,262,994 1.55%

17 ASIRI SURGICAL HOSPITAL PLC 3,137,427 1.49%

18 AKBAR BROTHERS PVT LTD A/C NO 1 3,058,993 1.45%

19 DFCC BANK PLC A/C 1 2,864,868 1.36%

20 MR. M.J. FERNANDO 2,466,085 1.17%

PUBLIC HOLDING PERCENTAGE

As at 31/12/2018

Float adjusted Market Capitalization in LKR 17,821,246,147.00

Percentage of shares held by the public 79.34%

Number of public shareholders 9,278

Option under which the Bank complies with the minimum Public Holding requirement Option 1

DIRECTORS INTEREST IN SHARES OF NDB AS AT 31.12.2018

NAME NO OF SHARES

A W ATUKORALA (CHAIRMAN) 1000

A K PATHIRAGE 5,466,010*

P L D N SENEVIRATNE 16,000

T L F JAYASEKERA -

K FERNANDO -

D S P WIKRAMANAYAKE -

I SUGATHADASA -

D M R PHILLIPS -

K D W RATNAYAKA -

R SEMASINGHE -

N S S COORAY -

* Includes shares held in the slash account

SHARE INFORMATION


Type of Debenture CSE Interest payable Balance as at Market Value Interest rate

Listing frequency 31 December 2018 Highest Lowest Quarter end Coupon Rate Effective Annual of comparable Interest Yield Yield To Maturity

LKR mn LKR LKR LKR % Yield % Govt. Security % % %

Fixed rate - Debenture June 2015

B - Jun 2015/Jun 2020

Listed

Payable on date

of redemption

1,914

9.4 annual

compounding on

the Issue Price of Rs.

63.8136 9.18 8.30

Fixed rate - Debenture December 2013

A - Dec 2013/Dec 2018 Listed Semi annually - - - -

B - Dec 2013/Dec 2018 Listed Annually - - - -

C - Dec 2013/Dec 2023 Listed Annually 3,638 13.90 13.17 9.75 Not traded during the quarter

D - Dec 2013/Dec 2025 Listed Annually 3,590 14.00 13.26 9.75

Total Debentures 16,143

Not traded during the quarter Not traded during the quarter


Not traded during the quarter


INFORMATION ON DEBENTURES- BANK

Interest Rate Other ratios as at last trade


A - Jun 2015/Jun 2020 8.30 Listed Annually 7,000 9.40 9.19Not traded during the quarter Not traded during the quarter


Disclosures regarding the utilization of funds as per the objectives stated in the Debenture Prospectus

Debenture Issue - June 2015

Objective

numberObjective as per Prospectus

Amount

allocated as per

Prospectus in

LKR

Proposed

date of

utilization as

per

Prospectus

Amount

allocated from

proceeds in

LKR (A)

% of total

proceeds

Amount

utilized in LKR

(B)

% of

utilization

against

allocation

(B/A)

Clarification if not fully utilized

including where the funds are invested

1

Strengthen the Tier II Capital Base

of the Bank and maintain the

Capital Adequacy requirements to

facilitate future growth of the

lending portfolio of the Bank

10,000,000,000 NA 10,000,000,000 100% 8,914,408,000 100% -

2

To mobilize/ raise medium term

funds to match medium term

lending of the Bank

10,000,000,000 NA 10,000,000,000 100% 10,000,000,000 100% -

3

To minimize the interest rate risk

rate risk and manage the gap

exposures of the Bank’s assets and

liabilities

10,000,000,000 NA 10,000,000,000 100% 10,000,000,000 100% -

Debenture Issue - December 2013

Objective

numberObjective as per Prospectus

Amount

allocated as per

Prospectus in

LKR

Proposed

date of

utilization as

per

Prospectus

Amount

allocated from

proceeds in

LKR (A)% of total

proceeds

Amount

utilized in LKR

(B)

% of

utilization

against

allocation

(B/A)

Clarification if not fully utilized

including where the funds are invested

1

Strengthen the Tier II Capital Base

of the Bank and maintain the

Capital Adequacy requirements in

line with the Bank's future

expansion of operations and the

asset base, and facilitate the future

expansion of business activities.

10,000,000,000 NA 10,000,000,000 100% 10,000,000,000 100% -

2

To mobilize/ raise medium term

funds to match medium term

lending of the Bank

10,000,000,000 NA 10,000,000,000 100% 10,000,000,000 100% -

3

To minimize the interest rate risk

rate risk and manage the gap

exposures of the Bank’s assets and

liabilities

10,000,000,000 NA 10,000,000,000 100% 10,000,000,000 100% -

The face value of the debentures issued is LKR 10 billion. Of the total debentures issued, Type B debentures were issued as zero coupon bonds with a face value of LKR 100/- per debenture and an

issue price of LKR 63.8136. Hence the total proceeds of the debenture is LKR 8,914 million.

Note: Types A and B of the listed Debenture Issue - December 2013, amounting respectively to LKR 1,243 mn and LKR 1,529 mn, matured in December 2018. The outstanding capital of this

Debenture is LKR 7,228 mn.


Important Dates – FY 2018 - Financial Results Release

Event Date

Financial statements released to the Colombo Stock Exchange, together with a Performance Commentary

11 February 2019

Investor Webinar To be notified [February 2019]

Updates to the investor relations web page within the Bank’s corporate website www.ndbbank.com

Within two working days from the release to the CSE

Edited transcript and playback video of the Investor webinar released/ uploaded to the Bank’s website

Within seven working days from the date of the Webinar

Investor Forum March 2019

Financial statements published in selected newspapers in the three languages of Sinhala, Tamil and English

March 2019

Corporate Information

Name National Development Bank PLC

Legal Form Established under the National Development Bank of Sri Lanka Act No. 02 of 1979 and incorporated as a Company under the Companies Act No. 17 of 1982 and reregistered under the Companies Act No. 07 of 2007 and also licensed as a Licensed Commercial Bank in terms of the Banking Act No. 30 of 1988 as amended from time to time.

Head Office/Registered Office No. 40, Navam Mawatha, Colombo 02 Tel: +94 11 2448448 Fax: +94 11 2341044 SWIFT Code: NDBS LK LX Web Page: www.ndbbank.com E-mail: [email protected] VAT Registration No.: 409000266-7000 Credit Rating: Long-term National Rating: A+(lka)/ Stable Outlook - Fitch Ratings Lanka Limited

Registration No. PQ 27 Accounting Year End 31 December VAT Registration No. 409000266-7000

Auditors M/s Ernst & Young, 201, De Saram Place, Colombo 10 Company Secretary: Mrs. Shehani Ranasinghe Compliance Officer Mrs. Manique Kiriella Bandara

Board of Directors A W Atukorala – Chairman A K Pathirage – Director/ Deputy Chairman P L D N Seneviratne – Director/ Chief Executive Officer T L F Jayasekera - Director D S P Wikramanayake - Director Mrs. K Fernando - Director Mrs. W A I Sugathadasa – Director D M R Phillips, PC – Director K D W Ratnayaka – Director R Semasinghe - Director S Cooray – Director

Subsidiary Companies NDB Capital Holdings Ltd. NDB Capital Ltd. (Bangladesh) Development Holding (Pvt) Ltd. NDB Investment Bank Ltd. NDB Wealth Management Ltd. NDB Securities (Pvt) Ltd. NDB Zephyr Partners Ltd. NDB Zephyr Partners Lanka (Pvt) Ltd. Ayojana Fund (Pvt) Ltd. (Under liquidation)

Investor Relations – Contact Details Company Secretarial Unit Ms. Shehani Ranasinghe Company Secretary/Assistant Vice-President Email: [email protected] Tel.: +94 (0)11 2448448 Extn: 33000

Investor Relations Team Ms. Suvendrini Muthukumarana Assistant Vice-President – Finance & Planning Email: suvendrini.muthukumarana@ndbbank com [email protected] Tel.: +94(0)112448448 Extn: 35301

23

Documents

INTERIM FINANCIAL STATEMENTS · was 101.7% as of end 2018. Furthermore, effective balance sheet management benefited from the sound strategic ties NDB ... Machines and extended their