Investor Relations Supplement
Dear Investor,
An effective dialogue with our valued investors is an important part of our stakeholder engagement in recognition of your vital support to the success of the Bank. We believe that you will actively seek to influence the behaviour of your Bank to improve the performance of areas such as environmental, social and governance using the stakeholder engagement structures in place. Consequently, we provide timely, transparent, accurate and consistent information to the investing public to create a productive dialogue to address their concerns and thereby, improve long term corporate performance. Information provided in this section provides useful insights as to the performance of your investment in the Bank not captured elsewhere in the report.
The full Annual Report together with Audited Financial Statements and the interim Financial Statements are available on the Bank's website (http://www.combank.lk/newweb/investor-relations). Alternatively, shareholders are able to elect to receive a mailed hard copy of the Annual Report on request. The Company Secretary of the Bank will respond to individual letters received from shareholders.
Compliance Report on the Contents of Annual Report in Terms of the Listing Rules of the CSE
We are pleased to inform you that your Bank has duly complied with all the requirements of the Section 7.6 of the Listing Rules of the CSE on the contents of the Annual Report and Accounts of a listed entity.
The table below provides reference to the relevant sections of this Annual Report where specified information is disclosed together with references for the convenience of the readers.
| Rule No. | Disclosure Requirement | Section/Reference |
| 7.6 (i) | Names of persons who held the position of Directors during the financial year | |
| 7.6 (ii) | Principal activities of the Bank and its Subsidiaries during the year and any changes therein |
|
| 7.6 (iii) | The names and the number of shares held by the 20 largest holders of voting and non-voting shares and the percentage of such shares held as at the end of the year | |
| 7.6 (iv) | The public holding percentage | |
| 7.6 (v) | Directors' and Chief Executive Officer's holding in shares at the beginning and at the end of the financial year | |
| 7.6 (vi) | Information pertaining to material foreseeable risk factors | |
| 7.6 (vii) | Details of material issues pertaining to employees and industrial relations | |
| 7.6 (viii) | Extents, locations, valuations and the number of buildings of the land holdings and investment properties as at the end of the year |
|
| 7.6 (ix) | Number of shares representing the stated capital as at the end of the year |
|
| 7.6 (x) | A distribution schedule of the number of holders in each class of equity securities and the percentage of their total holdings as at the end of the year | |
| 7.6 (xi) |
Ratios and market price information:
|
|
| 7.6 (xii) | Significant changes in the Bank or its Subsidiaries fixed assets and the market value of land, if the value differs substantially from the book value as at the end of the year |
|
| 7.6 (xiii) | Details of funds raised through Public Issues, Rights Issues and Private Placements during the year |
|
| 7.6 (xiv) | Information in respect of Employee Share Option Schemes | |
|
|
|
|
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| 7.6 (xv) | Disclosures pertaining to Corporate Governance practices in terms of Rules 7.10.3, 7.10.5 (c) and 7.10.6 (c) of Section 7 of the Listing Rules |
|
| 7.6 (xvi) | Disclosures on Related Party Transactions exceeding 10% of the Equity or 5% of the total assets of the Entity as per Audited Financial Statements, whichever is lower |
|
Our Stock
The shares of the Commercial Bank of Ceylon PLC are listed on the Main Board of the Colombo Stock Exchange (CSE) under the ticker symbol 'COMB'. Summary of trading activity and daily share prices (Graph 1) are published in most daily newspapers, including the Daily FT, Daily News, The Island and Daily Mirror generally under the abbreviation of Commercial Bank or COMB.
Further, graphical presentation on information on share trading is given on Graphs 2 - 7.
Performance of the Commercial Bank’s Ordinary Voting Share in 2015 Graph - 11. Quarterly Performance - 2015 Compared to 2014
Summary of the Income Statement
| 2015 | 2014 | |||||||||
| 1st Quarter Mar. 31 | 2nd Quarter Jun. 30 | 3rd Quarter Sep. 30 | 4th Quarter Dec. 31 | Total | 1st Quarter Mar. 31 | 2nd Quarter Jun. 30 | 3rd Quarter Sep. 30 | 4th Quarter Dec. 31 | Total | |
| Rs. Mn. | Rs. Mn. | Rs. Mn. | Rs. Mn. | Rs. Mn. | Rs. Mn. | Rs. Mn. | Rs. Mn. | Rs. Mn. | Rs. Mn. | |
| Group | ||||||||||
| Net Interest Income | 7,286.0 | 7,588.9 | 7,681.0 | 8,011.5 | 30,567.4 | 6,575.9 | 7,118.2 | 6,914.2 | 6,711.5 | 27,319.8 |
| Net Fees and Commission Income | 1,258.1 | 1,219.5 | 1,335.4 | 1,597.3 | 5,410.3 | 1,075.2 | 1,171.0 | 1,248.0 | 1,355.2 | 4,849.4 |
| Other Operating Income (Net) | 1,213.2 | 527.1 | 1,889.4 | 1,926.5 | 5,556.2 | 1,267.8 | 330.3 | 2,093.7 | 1,609.9 | 5,301.7 |
| Less: Impairment Charges for Loans and Other Losses | 1,334.2 | 753.7 | 1,097.0 | 914.9 | 4,099.8 | 1,144.8 | 1,114.3 | 734.0 | 215.5 | 3,208.6 |
| Net Operating Income | 8,423.1 | 8,581.8 | 9,808.8 | 10,620.4 | 37,434.1 | 7,774.1 | 7,505.2 | 9,521.9 | 9,461.1 | 34,262.3 |
| Less: Expenses | 4,792.8 | 4,724.3 | 5,071.4 | 5,723.2 | 20,311.7 | 4,450.4 | 4,294.1 | 4,765.3 | 4,898.8 | 18,408.6 |
| Operating Profit | 3,630.3 | 3,857.5 | 4,737.4 | 4,897.2 | 17,122.4 | 3,323.7 | 3,211.1 | 4,756.6 | 4,562.3 | 15,853.7 |
| Add: Share of Profits/ (Losses) of Associate Companies | 2.3 | 2.8 | 4.8 | 3.7 | 13.6 | 0.9 | 6.2 | 1.0 | (1.6) | 6.5 |
| Profit Before Income Tax | 3,632.6 | 3,860.3 | 4,742.2 | 4,900.9 | 17,136.0 | 3,324.6 | 3,217.3 | 4,757.6 | 4,560.7 | 15,860.2 |
| Less: Income Tax Expense | 1,095.7 | 1,213.3 | 1,491.4 | 1,476.4 | 5,276.8 | 1,022.6 | 999.5 | 1,425.9 | 1,169.2 | 4,617.2 |
| Profit for the Period | 2,536.9 | 2,647.0 | 3,250.8 | 3,424.5 | 11,859.2 | 2,302.0 | 2,217.8 | 3,331.7 | 3,391.5 | 11,243.0 |
| Quarterly Profit as a % of the Profit after Tax | 21.4 | 22.3 | 27.4 | 28.9 | 100.0 | 20.5 | 19.7 | 29.6 | 30.2 | 100.0 |
| Cumulative Quarterly Profit as a % of the Profit after Tax | 21.4 | 43.7 | 71.1 | 100.0 | 20.5 | 40.2 | 69.8 | 100.0 | ||
| Bank | ||||||||||
| Net Interest Income | 7,232.7 | 7,534.9 | 7,630.2 | 7,947.8 | 30,345.6 | 6,571.4 | 7,114.0 | 6,886.2 | 6,650.3 | 27,221.9 |
| Net Fees and Commission Income | 1,256.4 | 1,217.5 | 1,333.3 | 1,566.8 | 5,374.0 | 1,074.1 | 1,169.9 | 1,246.8 | 1,340.4 | 4,831.2 |
| Other Operating Income (Net) | 1,192.6 | 543.2 | 1,889.2 | 1,937.2 | 5,562.2 | 1,249.7 | 319.0 | 2,093.3 | 1,665.4 | 5,327.4 |
| Less: Impairment Charges for Loans and Other Losses | 1,329.7 | 729.9 | 1,055.6 | 828.0 | 3,943.2 | 1,151.2 | 1,134.4 | 726.1 | 217.4 | 3,229.1 |
| Net Operating Income | 8,352.0 | 8,565.7 | 9,797.1 | 10,623.8 | 37,338.6 | 7,744.0 | 7,468.5 | 9,500.2 | 9,438.7 | 34,151.4 |
| Less: Expenses | 4,772.8 | 4,701.8 | 5,049.7 | 5,670.7 | 20,195.0 | 4,453.6 | 4,284.9 | 4,761.5 | 4,915.4 | 18,415.4 |
| Profit Before Income Tax | 3,579.2 | 3,863.9 | 4,747.4 | 4,953.1 | 17,143.6 | 3,290.4 | 3,183.6 | 4,738.7 | 4,523.3 | 15,736.0 |
| Less: Income Tax Expense | 1,070.5 | 1,204.6 | 1,489.4 | 1,475.9 | 5,240.4 | 1,011.9 | 983.1 | 1,413.0 | 1,148.0 | 4,556.0 |
| Profit for the Period | 2,508.7 | 2,659.3 | 3,258.0 | 3,477.2 | 11,903.2 | 2,278.5 | 2,200.5 | 3,325.7 | 3,375.3 | 11,180.0 |
| Quarterly Profit as a % of the Profit after Tax | 21.1 | 22.3 | 27.4 | 29.2 | 100.0 | 20.4 | 19.7 | 29.7 | 30.2 | 100.0 |
| Cumulative Quarterly Profit as a % of the Profit after Tax | 21.1 | 43.4 | 70.8 | 100.0 | 20.4 | 40.1 | 69.8 | 100.0 | ||
Summary of Statements of Financial Position
| 2015 | 2014 | |||||||
| As at | Mar. 31 | Jun. 30 | Sep. 30 | Dec. 31 | Mar. 31 | Jun. 30 | Sep. 30 | Dec. 31 |
| Rs. Mn. | Rs. Mn. | Rs. Mn. | Rs. Mn. | Rs. Mn. | Rs. Mn. | Rs. Mn. | Rs. Mn. | |
| Group | ||||||||
| Cash and Cash Equivalents | 25,668.2 | 26,117.8 | 19,311.9 | 20,107.1 | 18,538.0 | 15,332.2 | 15,789.1 | 20,621.8 |
| Placements with Banks | 13,275.0 | 6,149.5 | 10,362.5 | 17,193.5 | 7,190.8 | 4,981.5 | 4,774.8 | 14,507.9 |
| Securities Purchased Under Resale Agreements | 10,266.1 | 6,001.0 | 1,944.4 | 8,002.1 | 12,994.6 | 20,538.8 | 38,033.6 | 41,198.3 |
| Other Financial Assets - Held-for-Trading | 9,501.5 | 12,392.0 | 12,624.0 | 7,656.3 | 15,241.7 | 14,941.2 | 9,834.4 | 6,326.6 |
| Loans and Receivables to Banks and Other Customers | 439,122.3 | 456,915.4 | 484,416.1 | 509,923.1 | 359,739.6 | 372,108.8 | 397,065.5 | 406,531.0 |
| Financial Investments - Available-for-Sale | 215,671.3 | 206,166.1 | 236,351.0 | 204,262.0 | 148,107.3 | 167,359.0 | 189,901.9 | 214,225.0 |
| Financial Investments - Loans and Receivables | 50,249.3 | 50,684.2 | 58,030.1 | 57,724.4 | 45,740.3 | 45,556.6 | 48,838.1 | 50,436.1 |
| Other Assets | 45,719.8 | 51,481.1 | 52,391.1 | 57,314.7 | 41,051.4 | 43,350.2 | 44,409.8 | 43,411.0 |
| 809,473.5 | 815,907.1 | 875,431.1 | 882,183.2 | 648,603.7 | 684,168.2 | 748,647.3 | 797,257.7 | |
| Due to Banks | 30,445.8 | 16,008.3 | 34,661.1 | 31,789.4 | 9,165.4 | 15,964.1 | 26,791.0 | 25,669.0 |
| Securities Sold Under Resale Agreements | 115,936.1 | 119,539.1 | 137,403.1 | 112,249.7 | 60,594.9 | 72,158.1 | 101,309.1 | 124,391.0 |
| Due to Other Customers/Deposits from Customers | 549,003.3 | 568,954.3 | 588,803.5 | 624,021.2 | 472,175.2 | 487,506.2 | 504,103.2 | 529,266.6 |
| Other Borrowings | 11,359.3 | 10,116.4 | 10,045.9 | 9,985.6 | 14,353.1 | 13,171.2 | 12,733.6 | 11,636.6 |
| Subordinated Liabilities | 11,415.0 | 11,324.1 | 12,106.1 | 11,988.3 | 11,084.1 | 10,937.8 | 11,374.2 | 11,262.6 |
| Other Liabilities | 24,734.5 | 18,943.3 | 21,078.3 | 21,135.2 | 19,967.7 | 21,140.3 | 22,646.8 | 23,778.5 |
| Shareholders' Funds | 66,579.5 | 71,021.6 | 71,333.1 | 71,013.8 | 61,263.3 | 63,290.5 | 69,689.3 | 71,253.4 |
| 809,473.5 | 815,907.1 | 875,431.1 | 882,183.2 | 648,603.7 | 684,168.2 | 748,647.3 | 797,257.7 | |
| Quarterly Growth (%) | ||||||||
| Loans and Receivables to Banks and Other Customers | 8.02 | 4.05 | 6.02 | 5.27 | 1.48 | 3.44 | 6.71 | 2.38 |
| Due to Other Customers/Deposits from Customers | 3.73 | 3.63 | 3.49 | 5.98 | 4.67 | 3.25 | 3.40 | 4.99 |
| Total Assets | 1.53 | 0.79 | 7.30 | 0.77 | 6.93 | 5.48 | 9.42 | 6.49 |
Summary of Statements of Financial Position
| 2015 | 2014 | |||||||
| As at | Mar. 31 | Jun. 30 | Sep. 30 | Dec. 31 | Mar. 31 | Jun. 30 | Sep. 30 | Dec. 31 |
| Rs. Mn. | Rs. Mn. | Rs. Mn. | Rs. Mn. | Rs. Mn. | Rs. Mn. | Rs. Mn. | Rs. Mn. | |
| Bank | ||||||||
| Cash and Cash Equivalents | 25,640.4 | 26,097.7 | 19,286.7 | 20,043.5 | 18,521.8 | 15,316.8 | 15,732.4 | 20,591.9 |
| Placements with Banks | 13,275.0 | 6,149.5 | 10,362.5 | 17,193.5 | 7,190.8 | 4,981.5 | 4,774.8 | 14,507.9 |
| Securities Purchased Under Resale Agreements | 10,266.1 | 6,001.0 | 1,944.4 | 8,002.1 | 12,994.6 | 20,538.8 | 38,033.6 | 41,198.3 |
| Other Financial Assets - Held-for-Trading | 9,501.5 | 12,392.0 | 12,624.0 | 7,656.3 | 15,241.7 | 14,941.2 | 9,834.4 | 6,326.6 |
| Loans and Receivables to Banks and Other Customers | 438,037.6 | 455,430.4 | 482,511.5 | 508,115.1 | 359,748.1 | 372,114.0 | 396,068.7 | 405,431.4 |
| Financial Investments - Available-for-Sale | 215,654.5 | 206,149.1 | 236,333.6 | 204,244.3 | 148,107.3 | 167,359.0 | 189,885.5 | 214,208.4 |
| Financial Investments - Loans and Receivables | 50,249.3 | 50,684.2 | 58,030.1 | 57,724.4 | 45,740.3 | 45,556.6 | 48,838.1 | 50,436.1 |
| Other Assets | 45,227.5 | 50,937.1 | 51,830.2 | 56,825.8 | 40,478.3 | 42,772.1 | 44,121.9 | 42,909.1 |
| 807,851.9 | 813,841.0 | 872,923.0 | 879,805.1 | 648,023.0 | 683,579.9 | 747,289.5 | 795,609.6 | |
| Due to Banks | 30,069.9 | 15,174.1 | 33,373.7 | 30,319.1 | 9,165.4 | 15,964.1 | 26,423.8 | 25,261.0 |
| Securities Sold Under Resale Agreements | 116,096.1 | 119,679.7 | 137,535.5 | 112,384.8 | 60,782.3 | 72,344.8 | 101,506.1 | 124,564.5 |
| Due to Other Customers'/Deposits from Customers | 549,111.2 | 569,082.1 | 588,917.5 | 624,101.8 | 472,244.6 | 487,598.8 | 504,161.2 | 529,361.5 |
| Other Borrowings | 11,346.3 | 10,104.4 | 10,045.9 | 9,985.6 | 14,343.6 | 13,162.5 | 12,722.0 | 11,636.6 |
| Subordinated Liabilities | 11,197.2 | 11,106.3 | 11,888.3 | 11,973.3 | 11,084.1 | 10,937.8 | 11,156.4 | 11,044.8 |
| Other Liabilities | 24,215.3 | 18,432.7 | 20,579.4 | 20,699.7 | 19,703.8 | 20,859.3 | 22,236.3 | 23,229.6 |
| Shareholders' Funds | 65,815.9 | 70,261.7 | 70,582.7 | 70,340.8 | 60,699.2 | 62,712.6 | 69,083.8 | 70,511.7 |
| 807,851.9 | 813,841.0 | 872,923.0 | 879,805.1 | 648,023.0 | 683,579.9 | 747,289.5 | 795,609.6 | |
| Quarterly Growth (%) | ||||||||
| Loans and Receivables to Banks and Other Customers | 8.04 | 3.97 | 5.95 | 5.31 | 1.47 | 3.44 | 6.44 | 2.36 |
| Due to Other Customers/Deposits from customers | 3.73 | 3.64 | 3.49 | 5.97 | 4.68 | 3.25 | 3.40 | 5.00 |
| Total Assets | 1.54 | 0.74 | 7.26 | 0.79 | 6.94 | 5.49 | 9.32 | 6.47 |
2. Stock Exchange Listing
The following securities of the Bank are listed on the Main Board of the CSE:
| Shares | Ordinary Shares-Voting | |
| Ordinary Shares-Non-Voting | ||
| Debentures | Fixed Rate |
|
| Floating Rate |
|
The Bank duly submitted the unaudited Interim Financial Statements for the year 2015 to the CSE within applicable statutory deadlines as required by the Rule No. 7.4 (a) (i) of the Listing Rules of the CSE. (The Bank also duly complied with this requirement for 2014.)
The Audited Income Statement for the year ended December 31, 2015 and the Audited Statement of Financial Position as at December 31, 2015 will be submitted to the CSE within three months from the year-end, which is well within the required deadline as required by the Rule No. 7.5 (a) of the Listing Rules of the CSE. (The Bank duly complied with this requirement for 2014.)
3. Information on Share Trading
| Ordinary Shares-Voting | Ordinary Shares-Non-Voting | |||
| 2015 | 2014 | 2015 | 2014 | |
| Number of Transactions | 15,575 | 17,846 | 5,073 | 7,382 |
| Number of Shares Traded | 117,372,662 | 129,328,356 | 9,552,654 | 19,648,816 |
| Value of Shares Traded (Rs. Bn.) | 19.39 | 18.34 | 1.28 | 2.09 |
4. Shareholder Base
| 2015 | 2014 | |
| Number of Ordinary Voting Shareholders | 9,412 | 8,374 |
| Number of Ordinary Non-Voting Shareholders | 4,216 | 4,140 |
| Total | 13,628 | 12,514 |
5. The Names, Number and Percentage of Shares held by Twenty Largest Shareholders [As per Rule No. 7.6 (III) of the Listing Rules of the CSE]
| As at December 31, | 2015 | 2014 (*) | |||
| Ordinary Shares-Voting | No. of Shares | % | No. of Shares | % | |
| 1. | DFCC Bank A/C 1 | 121,005,515 | 14.75 | 119,806,122 | 14.79 |
| 2. | Mr. Y.S.H.I. Silva | 81,388,992 | 9.92 | 47,355,714 | 5.84 |
| 3. | Employees' Provident Fund | 79,594,968 | 9.70 | 78,806,032 | 9.73 |
| 4. | Sri Lanka Insurance Corporation Ltd. - Life Fund | 41,260,840 | 5.03 | 40,851,867 | 5.04 |
| 5. | CB NY S/A International Finance Corporation | 36,677,879 | 4.47 | 40,381,198 | 4.98 |
| 6. | Sri Lanka Insurance Corporation Ltd. - General Fund | 35,478,645 | 4.32 | 35,126,985 | 4.34 |
| 7. | HSBC International Nominees Ltd. - JPMLU - Franklin Templeton Investment Funds | 24,352,909 | 2.97 | 47,984,547 | 5.92 |
| 8. | Melstacorp Ltd. | 19,879,375 | 2.42 | 18,989,272 | 2.34 |
| 9. | HSBC International Nominees Ltd. - SSBT - Wasatch Frontier - Emerging Small Countries Fund | 16,087,568 | 1.96 | 20,383,126 | 2.52 |
| 10. | Mrs. L.E.M Yaseen | 15,380,000 | 1.87 | 14,000,030 | 1.73 |
| 11. | HSBC International Nominees Ltd. - SSBT - Morgan Stanley Institutional Fund, Inc. Frontier Emerging Markets Portfolio | 13,434,182 | 1.64 | 11,295,245 | 1.39 |
| 12. | HSBC International Nominees Ltd. - SSBT - Morgan Stanley Asset Management SA Acting on behalf of Morgan Stanley Galaxy Fund | 11,731,336 | 1.43 | 8,094,018 | 1.00 |
| 13. | HSBC International Nominees Ltd. - BPSS - LUX - Aberdeen Global Asia Pacific Equity Fund | 11,014,249 | 1.34 | 10,905,077 | 1.35 |
| 14. | Mercantile Investments and Finance PLC | 10,509,737 | 1.28 | 10,405,566 | 1.28 |
| 15. | HSBC International Nominees Ltd. - BPSS - LUX - Aberdeen Global - Asian Smaller Companies Fund | 10,319,466 | 1.26 | 15,177,533 | 1.87 |
| 16. | HSBC International Nominees Ltd. - SSBT - Aberdeen Institutional Commingled Funds, LLC | 8,681,933 | 1.06 | 7,769,156 | 0.96 |
| 17. | HSBC International Nominees Ltd. - JPMLU - Schroder International Selection Fund | 8,592,280 | 1.05 | 12,012,366 | 1.48 |
| 18. | The Bank of New York Mellon SA/NV - CF Ruffer Total Return Fund | 8,280,574 | 1.01 | 8,198,498 | 1.01 |
| 19. | HSBC International Nominees Ltd. - SSBT - BMO Investments II (Ireland) Public Limited Company | 7,208,955 | 0.88 | - | - |
| 20. | HSBC International Nominees Ltd. - SSBT - National Westminster Bank PLC as Depositary of First State Indian Subcontinent | 7,037,883 | 0.86 | - | - |
| Sub Total | 567,917,286 | 69.22 | 547,542,352 | 67.57 | |
| Other Shareholders | 252,649,829 | 30.78 | 262,735,377 | 32.43 | |
| Total | 820,567,115 | 100.00 | 810,277,729 | 100.00 | |
As per Rule No. 7.6 (iv) of the Listing Rules of the CSE, percentage of public holding of voting shares as at December 31, 2015 was 99.64% (99.57% as at December 31, 2014).
As per Rule No. 7.13.1 of the Listing Rules of the CSE, Number of shareholders representing public holding as at December 31, 2015 - 9,383 (8,349 as at December 31, 2014).
* Comparative shareholdings as at December 31, 2014 of the twenty largest shareholders as at December 31, 2015.
| As at December 31, | 2015 | 2014 (*) | |||
| Ordinary Shares - Non-Voting | No. of Shares | % | No. of Shares | % | |
| 1. | Employees' Trust Fund Board | 4,101,132 | 7.28 | 882,181 | 1.57 |
| 2. | HSBC International Nominees Ltd. - JPMLU - Franklin Templeton Investment Funds | 3,256,814 | 5.78 | 3,215,179 | 5.71 |
| 3. | Citi Bank NY S/A Forward International Dividend Fund | 1,781,807 | 3.16 | 1,926,649 | 3.42 |
| 4. | GF Capital Global Ltd. | 1,565,812 | 2.78 | 1,545,795 | 2.75 |
| 5. | HINL - JPMCB - Butterfield Trust (Bermuda) Ltd. | 1,396,941 | 2.48 | 1,379,083 | 2.45 |
| 6. | Citi Bank Newyork S/A Norges Bank Account 2 | 1,265,623 | 2.25 | - | - |
| 7. | Mr. J.D. Bandaranayake | 1,085,359 | 1.93 | 1,098,285 | 1.95 |
| 8. | Waldock Mackenzie Ltd./ Mr. S.N.P. Palihena and Mrs. A.S. Palihena | 1,000,000 | 1.78 | 1,000,000 | 1.78 |
| 9. | M.J.F. Exports Ltd. | 963,107 | 1.71 | 950,795 | 1.69 |
| 10. | Mr. M.F. Hashim | 767,339 | 1.36 | 746,733 | 1.33 |
| 11. | Saboor Chatoor (Pvt) Ltd. | 763,000 | 1.36 | 751,000 | 1.33 |
| 12. | Beta Holdings Ltd. | 727,971 | 1.29 | 698,000 | 1.24 |
| 13. | Mrs. L.V.C. Samarasinha | 607,769 | 1.08 | 600,000 | 1.07 |
| 14. | Union Assurance PLC - No - 01A/C | 572,424 | 1.02 | 565,107 | 1.00 |
| 15. | Akbar Brothers (Pvt) Ltd. A/C No 1 | 567,605 | 1.01 | 560,349 | 1.00 |
| 16. | Dr. A.K.A. Jayawardene | 496,976 | 0.88 | 490,623 | 0.87 |
| 17. | Mr. G.R. Mallawaaratchy/Mrs. B.G.P. Mallawaaratchy | 462,309 | 0.82 | 446,527 | 0.79 |
| 18. | Mr. W.R.H.Perera | 444,838 | 0.79 | 439,512 | 0.78 |
| 19. | Alpex Marine (Pvt) Ltd. | 423,734 | 0.75 | 418,317 | 0.74 |
| 20. | Mr. J.G. de Mel | 420,000 | 0.75 | 250,000 | 0.44 |
| Sub-Total | 22,670,560 | 40.26 | 17,964,135 | 31.91 | |
| Other Shareholders | 33,629,126 | 59.74 | 37,615,811 | 68.09 | |
| Total | 56,299,686 | 100.00 | 55,579,946 | 100.00 | |
As per Rule No. 7.6 (iv) of the Listing Rules of the CSE, percentage of public holding of non-voting shares as at December 31, 2015 was 99.79% (99.79% as at December 31, 2014).
As per Rule No. 7.13.1 of the Listing Rules of the CSE, Number of shareholders representing public holding as at December 31, 2015 - 4,207 (4,131 as at December 31, 2014).
* Comparative shareholdings as at December 31, 2014 of the twenty largest shareholders as at December 31, 2015.
6. Directors' Shareholding Including the Chief Executive Officer's Shareholding [As Per Rule No. 7.6 (V) of the Listing Rules of the Colombo Stock Exchange]
| Ordinary Shares-Voting | Ordinary Shares-Non-Voting | ||||
| As at December 31, | 2015 | 2014 | 2015 | 2014 | |
| Mr. K.G.D.D. Dheerasinghe - Chairman | 20,859 | 20,653 | Nil | Nil | |
| Mr. M.P. Jayawardena - Deputy Chaiman | Nil | Nil | Nil | Nil | |
| Mr. J. Durairatnam - MD/CEO | 412,056 | 379,087 | Nil | Nil | |
| Mr. S. Renganathan | 191,936 | 190,034 | 10,321 | 10,190 | |
| Mr. S. Swarnajothi | Nil | Nil | 8,599 | 8,490 | |
| Mr. H.J. Wilson | Nil | Nil | Nil | Nil | |
| Prof. A.K.W. Jayawardane | Nil | Nil | Nil | Nil | |
| Mr. K. Dharmasiri | Nil | Nil | Nil | Nil | |
7. Material Foreseeable Risk Factors [As per rule no. 7.6 (VI) of the Listing Rules of the Colombo Stock Exchange]
Information pertaining to the material foreseeable risk factors, that require disclosures as per the Rule No. 7.6 (vi) of the Listing Rules of the CSE are discussed in the Section on 'Managing Risk at Commercial Bank'.
8. Material Issues Pertaining to Employees and Industrial Relations Pertaining to the Bank [As per Rule No. 7.6 (VII) of the Listing Rules of the Colombo Stock Exchange]
There were no material issues pertaining to employees and industrial relations pertaining to the Bank that occurred during the year under review which require disclosure.
9. Information on Movement in Number of Shares Represented by the Stated Capital [As per Rule No. 7.6 (IX) of the Listing Rules of the Colombo Stock Exchange]
| No. of Shares | |||||||
| Year | Details | Basis | No. of Shares Issued/ (Redeemed) | Ordinary Shares -Voting | Ordinary Shares- Non-Voting | Cumulative Redeemable Preference Shares | |
| 1987 | As at December 31, 1987 | 3,000,000 | - | - | |||
| 1988 | Bonus Issue | Voting | 2 for 3 | 2,000,000 | 5,000,000 | - | - |
| 1990 | Bonus Issue | Voting | 1 for 1 | 5,000,000 | 10,000,000 | - | - |
| 1993 | Rights Issue | Voting | 1 for 4 | 2,500,000 | 12,500,000 | - | - |
| 1996 | Bonus Issue | Voting | 3 for 5 | 7,500,000 | 20,000,000 | - | - |
| Rights Issue | Voting | 1 for 4 | 5,000,000 | 25,000,000 | - | - | |
| Share Swap | Non-Voting | 894,275 | 25,000,000 | 894,275 | - | ||
| Bonus Issue | Non-Voting | 3 for 5 | 536,565 | 25,000,000 | 1,430,840 | - | |
| Rights Issue | Non-Voting | 1 for 4 | 357,710 | 25,000,000 | 1,788,550 | - | |
| 1998 | Bonus Issue | Voting | 3 for 10 | 7,500,000 | 32,500,000 | 1,788,550 | - |
| Bonus Issue | Non-Voting | 3 for 10 | 536,565 | 32,500,000 | 2,325,115 | - | |
| 2001 | Bonus Issue | Voting | 1 for 5 | 6,500,000 | 39,000,000 | 2,325,115 | - |
| Bonus Issue | Non-Voting | 1 for 5 | 465,023 | 39,000,000 | 2,790,138 | - | |
| Issue of Cumulative Redeemable Preference Shares | 90,655,500 | 39,000,000 | 2,790,138 | 90,655,500 | |||
| 2003 | Bonus Issue | Voting | 1 for 3 | 13,000,000 | 52,000,000 | 2,790,138 | 90,655,500 |
| Rights Issue | Voting | 1 for 4 | 13,000,000 | 65,000,000 | 2,790,138 | 90,655,500 | |
| Bonus Issue | Non-Voting | 1 for 3 | 930,046 | 65,000,000 | 3,720,184 | 90,655,500 | |
| Rights Issue | Non-Voting | 1 for 4 | 930,046 | 65,000,000 | 4,650,230 | 90,655,500 | |
| Issue of Cumulative Redeemable Preference Shares | 100,000,000 | 65,000,000 | 4,650,230 | 190,655,500 | |||
| 2004 | ESOP | Voting | 29,769 | 65,029,769 | 4,650,230 | 190,655,500 | |
| 2005 | ESOP | Voting | 1,361,591 | 66,391,360 | 4,650,230 | 190,655,500 | |
| Bonus Issue | Voting | 1 for 1 | 66,389,162 | 132,780,522 | 4,650,230 | 190,655,500 | |
| Bonus Issue | Non-Voting | 1 for 1 | 4,650,230 | 132,780,522 | 9,300,460 | 190,655,500 | |
| 2006 | ESOP | Voting | 737,742 | 133,518,264 | 9,300,460 | 190,655,500 | |
| Redemption of Cumulative Redeemable Preference Shares | (90,655,500) | 133,518,264 | 9,300,460 | 100,000,000 | |||
| 2007 | Rights Issue | Voting | 3 for 10 | 40,288,996 | 173,807,260 | 9,300,460 | 100,000,000 |
| Bonus Issue | Voting | 1 for 3 | 58,204,268 | 232,011,528 | 9,300,460 | 100,000,000 | |
| ESOP | Voting | 919,649 | 232,931,177 | 9,300,460 | 100,000,000 | ||
| Rights Issue | Non-Voting | 3 for 10 | 2,790,138 | 232,931,177 | 12,090,598 | 100,000,000 | |
| Bonus Issue | Non-Voting | 1 for 3 | 4,030,199 | 232,931,177 | 16,120,797 | 100,000,000 | |
| 2008 | Redemption of Cumulative Redeemable Preference Shares | (100,000,000) | 232,931,177 | 16,120,797 | - | ||
| ESOP | Voting | 350,049 | 233,281,226 | 16,120,797 | - | ||
| 2009 | ESOP | Voting | 540,045 | 233,821,271 | 16,120,797 | - | |
| 2010 | Share Split | Voting | 1 for 2 | 117,402,608 | 351,223,879 | 16,120,797 | - |
| Share Split | Non-Voting | 1 for 2 | 8,060,398 | 351,223,879 | 24,181,195 | - | |
| ESOP | Voting | 2,081,508 | 353,305,387 | 24,181,195 | - | ||
| 2011 | Scrip Issue for Final Dividend 2010 | Voting | 2,277,195 | 355,582,582 | 24,181,195 | - | |
| Scrip Issue for Final Dividend 2010 | Non-Voting | 255,734 | 355,582,582 | 24,436,929 | - | ||
| ESOP | Voting | 1,457,645 | 357,040,227 | 24,436,929 | - | ||
| Rights Issue | Voting | 1 for 14 | 25,502,433 | 382,542,660 | 24,436,929 | - | |
| Rights Issue | Non-Voting | 1 for 14 | 1,745,494 | 382,542,660 | 26,182,423 | - | |
| Share Split | Voting | 1 for 1 | 382,542,660 | 765,085,320 | 26,182,423 | - | |
| Share Split | Non-Voting | 1 for 1 | 26,182,423 | 765,085,320 | 52,364,846 | - | |
| 2012 | Scrip Issue for Final Dividend 2011 | Voting | 13,587,144 | 778,672,464 | 52,364,846 | - | |
| Scrip Issue for Final Dividend 2011 | Non-Voting | 1,108,902 | 778,672,464 | 53,473,748 | - | ||
| ESOP | Voting | 1,341,768 | 780,014,232 | 53,473,748 | - | ||
| 2013 | Scrip Issue for Final Dividend 2012 | Voting | 13,076,189 | 793,090,421 | 53,473,748 | - | |
| Scrip Issue for Final Dividend 2012 | Non-Voting | 1,069,474 | 793,090,421 | 54,543,222 | - | ||
| ESOP | Voting | 1,445,398 | 794,535,819 | 54,543,222 | - | ||
| 2014 | Scrip Issue for Final Dividend 2013 | Voting | 12,504,344 | 807,040,163 | 54,543,222 | - | |
| Scrip Issue for Final Dividend 2013 | Non-Voting | 1,036,724 | 807,040,163 | 55,579,946 | - | ||
| ESOP | Voting | 3,237,566 | 810,277,729 | 55,579,946 | - | ||
| 2015 | Scrip Issue for Final Dividend 2014 | Voting | 8,118,773 | 818,396,502 | 55,579,946 | - | |
| Scrip Issue for Final Dividend 2014 | Non-Voting | 719,740 | 818,396,502 | 56,299,686 | - | ||
| ESOP | Voting | 2,170,613 | 820,567,115 | 56,299,686 | - | ||
10. Distribution Schedule of the Number of Holders and Percentage of Holding in Each Class of Equity Securities [As per Rule No. 7.6 (X) of the Listing Rules of the Colombo Stock Exchange]
| As at December 31, 2015 | As at December 31, 2014 | |||||||||
| No. of Shareholders | % | No. of Shares | % | No. of Shareholders | % | No. of Shares | % | |||
| Ordinary Shares Voting | ||||||||||
| 1 | - | 1,000 | 4,683 | 49.77 | 1,187,812 | 0.14 | 4,033 | 48.16 | 985,748 | 0.12 |
| 1,001 | - | 10,000 | 3,014 | 32.02 | 11,163,309 | 1.36 | 2,683 | 32.04 | 10,067,965 | 1.24 |
| 10,001 | - | 100,000 | 1,432 | 15.21 | 41,917,942 | 5.11 | 1,380 | 16.48 | 40,455,736 | 4.99 |
| 100,001 | - | 1,000,000 | 211 | 2.24 | 59,390,754 | 7.24 | 206 | 2.46 | 61,331,081 | 7.57 |
| Over | 1,000,000 | 72 | 0.76 | 706,907,298 | 86.15 | 72 | 0.86 | 697,437,199 | 86.08 | |
| Total | 9,412 | 100.00 | 820,567,115 | 100.00 | 8,374 | 100.00 | 810,277,729 | 100.00 | ||
| Ordinary Shares Non-Voting | ||||||||||
| 1 | - | 1,000 | 2,235 | 53.01 | 567,113 | 1.00 | 2,163 | 52.24 | 564,960 | 1.02 |
| 1,001 | - | 10,000 | 1,370 | 32.50 | 4,474,887 | 7.95 | 1,359 | 32.83 | 4,533,671 | 8.15 |
| 10,001 | - | 100,000 | 506 | 12.00 | 13,724,725 | 24.38 | 515 | 12.44 | 14,051,351 | 25.28 |
| 100,001 | - | 1,000,000 | 98 | 2.32 | 23,079,473 | 41.00 | 96 | 2.32 | 23,887,685 | 42.99 |
| Over | 1,000,000 | 7 | 0.17 | 14,453,488 | 25.67 | 7 | 0.17 | 12,542,279 | 22.56 | |
| Total | 4,216 | 100.00 | 56,299,686 | 100.00 | 4,140 | 100.00 | 55,579,946 | 100.00 | ||
11. Information on Ratios, Market Prices of Shares and Credit Ratings [As per Rule No. 7.6 (XI) of the Listing Rules of the Colombo Stock Exchange]
(a) Information on Ratios
| 2015 | 2014 | |||
| Dividend per Share (Rs.) | Cash | First Interim Paid | 1.50 | 1.50 |
| Second Interim Paid | - | 1.00 | ||
| Final Proposed*/Paid | 3.00 | 2.00 | ||
| Total | 4.50 | 4.50 | ||
| Issue and Allotment of Shares | Final Proposed*/Allotted | 2.00 | 2.00 | |
| Total Dividend | 6.50 | 6.50 | ||
| Dividend Payout Ratio (%) | Cash | 33.15 | 34.86 | |
| Total (Cash and Shares) | 47.88 | 50.36 | ||
| Net Assets Value per Share (Rs.) | 80.22 | 81.44 |
* The Board of Directors of the Bank has recommended a final dividend of Rs. 5.00 per ordinary share, which consists of a cash dividend of Rs. 3.00 per share and the balance entitlement of Rs. 2.00 per share satisfied in the form of issue and allotment of new shares for both Voting and Non-Voting shareholders of the Bank for the year ended December 31, 2015 for approval by the shareholders at the 47th Annual General Meeting (AGM), to be held on March 31, 2016. (The Bank declared and paid a final dividend of Rs. 4.00 per share for the year ended December 31, 2014 which consists of a cash dividend of Rs. 2.00 per share and balance entitlement of Rs. 2.00 per share satisfied in the form of issue and allotment of new shares.)
(b) Market Prices
| Ordinary Shares-Voting | Ordinary Shares-Non-Voting | |||
| 2015 | 2014 | 2015 | 2014 | |
| Highest Price (Rs.) | 194.00 | 179.90 | 149.00 | 125.50 |
| Date of the Highest Price | (12.01.2015) | (18.11.2014) | (12.01.2015) | (31.12.2014) |
| Lowest Price (Rs.) | 139.90 | 113.50 | 122.10 | 91.30 |
| Date of the Lowest Price | (31.12.2015) | (24.02.2014) | (28.12.2015) | (01.04.2014) |
| Year-end Price (Rs.) | 140.20 | 171.00 | 123.00 | 125.10 |
(c) Debenture Composition
| Fixed Interest Rate | Floating Interest Rate | |||||
| 2015 | 2014 | 2015 | 2014 | |||
| Type of Issue | Private | Public | Private | Public | Public | Public |
| Debenture Type | N/A | Type 'A' | N/A | Type 'A' | Type 'D' | Type 'D' |
| CSE Listing | Not listed | Listed | Not listed | Listed | Listed | Listed |
| Issue Date | May 2006 | Dec. 2006 | May 2006 | Dec. 2006 | Dec. 2006 | Dec. 2006 |
| Maturity Date | May 2016 | Dec. 2016 | May 2016 | Dec. 2016 | Dec. 2016 | Dec. 2016 |
| Interest Payable Frequency | Annually | Annually | Annually | Annually | Annually | Annually |
| Offered Interest Rate | 13.25% p.a. | 14.00% p.a. | 13.25% p.a. | 14.00% p.a. | 12 Months TB Rate (Gross) + 1% p.a. | 12 Months TB Rate (Gross) + 1% p.a. |
| Amount (Rs. Mn.) | 505.000 | 467.260 | 505.000 | 467.260 | 0.400 | 0.400 |
| Market Values | ||||||
| - Highest (Rs.) | N/A | Not traded during the year | N/A | Not traded during the year | Not traded during the year | Not traded during the year |
| - Lowest (Rs.) | N/A | N/A | ||||
| - Year-end (Rs.) | N/A | N/A | ||||
| Interest Rates | ||||||
| - Coupon Rate (%) | 13.25 | 14.00 | 13.25 | 14.00 | 7.68 | 10.21 |
| - Effective Annual Yield (%) | 13.25 | 14.00 | 13.25 | 14.00 | 7.68 | 10.21 |
| Interest Rate of Comparable Government Security | 6.65 | 7.60 | 6.35 | 6.70 | 9.10 | 7.70 |
| Other Ratios as at Date of Last Trade | ||||||
| - Interest Yield (%) | N/A | Not traded during the year | N/A | Not traded during the year | Not traded during the year | Not traded during the year |
| - Yield to Maturity (%) | N/A | N/A | ||||
12 Months TB Rate (Gross) - Twelve months Treasury Bill rate before 10% withholding tax rate as published by the Central Bank of Sri Lanka immediately prior to the commencement of each interest period.
(d) Other Ratios
| 2015 | 2014 | |
| Debt Equity Ratio (%) | 23.20 | 25.97 |
| Interest Cover (Times) | 27.87 | 28.31 |
| Liquid Assets Ratio (%) (Minimum 20%) | 27.72 | 33.11 |
(e) Credit Ratings
- The Bank's credit rating, AA(lka) was reaffirmed by Fitch Ratings Lanka Ltd. in 2015
- The Bank's Bangladesh Operation's credit rating was reaffirmed as AAA by Credit Rating Information Services Ltd. in 2015
(f) Credit Ratings - Debentures
- The credit rating of the Bank's Subordinated Debentures Final, AA- (lka) too reaffirmed in 2015 by Fitch Ratings Lanka Ltd.
12. Information on Scrip Issues, Rights Issues and Share Splits
| Year/Month | Details |
| 2015 April | Issue of ordinary shares to satisfy a part of the final dividend for 2014 of Rs. 2.00 per ordinary share |
| 2014 April | Issue of ordinary shares to satisfy a part of the final dividend for 2013 of Rs. 2.00 per ordinary share |
| 2013 April | Issue of ordinary shares to satisfy a part of the final dividend for 2012 of Rs. 2.00 per ordinary share |
| 2012 April | Issue of ordinary shares to satisfy a part of the final dividend for 2011 of Rs. 2.00 per ordinary share |
| 2011 September | Share split of one ordinary share for every one ordinary share held immediately after the right issue |
| 2011 August | Rights issue of one ordinary share for every fourteen ordinary shares held |
| 2011 April | Issue of ordinary shares to satisfy a part of the final dividend for 2010 of Rs. 2.00 per ordinary share |
| 2010 June | Share split of one ordinary share for every two ordinary shares held |
| 2007 June | Scrip issue of one ordinary share for every three ordinary shares held |
| 2007 April | Rights issue of three ordinary shares for every ten ordinary shares held |
| 2005 June | Scrip issue of one ordinary share for every one ordinary share held |
| 2003 October | Right issue of one ordinary share for every four ordinary shares held |
| 2003 May | Scrip issue of one ordinary share for every three ordinary shares held |
13. Share Price Trend Over Last Ten Years
| Year | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 |
| Ordinary Shares-Voting | ||||||||||
| Highest Price (Rs.) | 194.00 | 179.90 | 126.00 | 119.50 | 284.00 | 295.00 | 192.00 | 149.75 | 250.00 | 192.50 |
| Lowest Price (Rs.) | 139.90 | 113.50 | 103.20 | 96.80 | 97.00 | 178.00 | 66.00 | 66.25 | 128.00 | 123.00 |
| Last Traded Price (Rs.) | 140.20 | 171.00 | 120.40 | 103.00 | 100.00 | 259.90 | 189.50 | 67.00 | 147.00 | 190.00 |
| Ordinary Shares-Non-Voting | ||||||||||
| Highest Price (Rs.) | 149.00 | 125.50 | 102.00 | 99.50 | 200.00 | 226.00 | 131.25 | 89.50 | 114.50 | 90.00 |
| Lowest Price (Rs.) | 122.10 | 91.30 | 87.00 | 73.00 | 69.10 | 75.00 | 48.25 | 48.00 | 60.00 | 54.00 |
| Last Traded Price (Rs.) | 123.00 | 125.10 | 93.00 | 91.10 | 74.50 | 162.00 | 124.75 | 49.00 | 74.50 | 89.00 |
14. Composition of Shareholders
| As at December 31, 2015 | As at December 31, 2014 | |||||||
| No. of Shareholders | % | No. of Shares | % | No. of Shareholders | % | No. of Shares | % | |
| Ordinary Shares-Voting | ||||||||
| Resident | 9,094 | 96.62 | 558,973,595 | 68.12 | 8,065 | 96.31 | 504,235,468 | 62.23 |
| Non-Resident | 318 | 3.38 | 261,593,520 | 31.88 | 309 | 3.69 | 306,042,261 | 37.77 |
| Total | 9,412 | 100.00 | 820,567,115 | 100.00 | 8,374 | 100.00 | 810,277,729 | 100.00 |
| Individuals | 8,847 | 94.00 | 187,853,981 | 22.89 | 7,878 | 94.08 | 149,595,615 | 18.46 |
| Institutions | 565 | 6.00 | 632,713,134 | 77.11 | 496 | 5.92 | 660,682,114 | 81.54 |
| Total | 9,412 | 100.00 | 820,567,115 | 100.00 | 8,374 | 100.00 | 810,277,729 | 100.00 |
| Ordinary Shares - Non-Voting | ||||||||
| Resident | 4,128 | 97.91 | 44,666,354 | 79.34 | 4,057 | 98.00 | 43,842,309 | 78.88 |
| Non-Resident | 88 | 2.09 | 11,633,332 | 20.66 | 83 | 2.00 | 11,737,637 | 21.12 |
| Total | 4,216 | 100.00 | 56,299,686 | 100.00 | 4,140 | 100.00 | 55,579,946 | 100.00 |
| Individuals | 3,997 | 94.81 | 32,174,283 | 57.15 | 3,941 | 95.19 | 34,736,840 | 62.50 |
| Institutions | 219 | 5.19 | 24,125,403 | 42.85 | 199 | 4.81 | 20,843,106 | 37.50 |
| Total | 4,216 | 100.00 | 56,299,686 | 100.00 | 4,140 | 100.00 | 55,579,946 | 100.00 |
15. Information on Shareholders' Funds and Market Capitalisation
| Shareholders' Funds | Commercial Bank's Market Capitalisation (*) | Total Market Capitalisation of the CSE | Commercial Bank's Market Capitalisation as a % of CSE Market Capitalisation | Commecercial Bank's Market Capitalisation Ranking | |
| As at December 31, | Rs. Mn. | Rs. Mn. | Rs. Mn. | % | Rank |
| 2015 | 70,341 | 115,033 | 2,937,998 | 3.92 | 3 |
| 2014 | 70,512 | 138,557 | 3,104,864 | 4.46 | 3 |
| 2013 | 60,944 | 95,654 | 2,286,320 | 4.18 | 4 |
| 2012 | 52,577 | 80,341 | 2,167,581 | 3.71 | 5 |
| 2011 | 43,765 | 76,509 | 2,268,854 | 3.37 | 6 |
| 2010 | 33,965 | 91,824 | 2,280,874 | 4.03 | 4 |
| 2009 | 28,499 | 44,309 | 1,092,138 | 4.06 | 5 |
| 2008 | 25,891 | 15,630 | 488,813 | 3.20 | 4 |
| 2007 | 23,937 | 34,234 | 820,652 | 4.17 | 4 |
| 2006 | 15,843 | 25,368 | 834,763 | 3.04 | 5 |