Income Statement

		GROUP			BANK
For the year ended December 31,	Note	2017 Rs. ’000	2016 Rs. ’000	Change %	2017 Rs. ’000	2016 Rs. ’000	Change %
Gross income	12	116,841,755	93,725,535	24.66	115,593,948	93,142,610	24.10
Interest income	13.1	104,049,102	81,314,607	27.96	103,034,386	80,738,176	27.62
Less: Interest expense	13.2	64,481,804	48,186,331	33.82	64,010,991	47,914,573	33.59
Net interest income	13	39,567,298	33,128,276	19.44	39,023,395	32,823,603	18.89
Fee and commission income	14.1	10,510,800	8,230,131	27.71	10,169,211	8,143,041	24.88
Less: Fee and commission expense	14.2	1,586,334	1,140,954	39.04	1,566,851	1,127,536	38.96
Net fee and commission income	14	8,924,466	7,089,177	25.89	8,602,360	7,015,505	22.62
Net gains/(losses) from trading	15	233,956	(1,466,711)	115.95	233,956	(1,466,711)	115.95
Net gains/(losses) from financial instruments designated at fair value through profit or loss		–	–	–	–	–	–
Net gains/(losses) from financial investments	16	129,210	110,759	16.66	129,030	110,701	16.56
Other income (net)	17	1,918,687	5,536,749	(65.35)	2,027,365	5,617,403	(63.91)
Total operating income		50,773,617	44,398,250	14.36	50,016,106	44,100,501	13.41
Less: Impairment charges for loans and other losses	18	2,225,914	1,583,326	40.58	1,914,241	1,529,814	25.13
Net operating income		48,547,703	42,814,924	13.39	48,101,865	42,570,687	12.99
Less: Expenses
Personnel expenses	19	11,338,517	10,913,088	3.90	11,268,016	10,794,307	4.39
Depreciation and amortisation	20	1,416,927	1,268,330	11.72	1,307,804	1,189,493	9.95
Other operating expenses	21	7,618,993	6,809,435	11.89	7,461,964	6,832,345	9.22
Total operating expenses		20,374,437	18,990,853	7.29	20,037,784	18,816,145	6.49
Operating profit before Value Added Tax (VAT) and Nation Building Tax (NBT)		28,173,266	23,824,071	18.26	28,064,081	23,754,542	18.14
Less: Value Added Tax (VAT) on financial services and Nation Building Tax (NBT)		4,896,620	3,715,941	31.77	4,881,137	3,703,359	31.80
Operating profit after Value Added Tax (VAT) and Nation Building Tax (NBT)		23,276,646	20,108,130	15.76	23,182,944	20,051,183	15.62
Share of profits of associates, net of tax	38.1	3,678	6,454	(43.01)	–	–	–
Profit before tax		23,280,324	20,114,584	15.74	23,182,944	20,051,183	15.62
Less: Income tax expense	22	6,653,817	5,648,160	17.81	6,601,700	5,538,672	19.19
Profit for the year		16,626,507	14,466,424	14.93	16,581,244	14,512,511	14.25
Profit attributable to:
Equity holders of the Bank		16,605,963	14,510,333	14.44	16,581,244	14,512,511	14.25
Non-controlling interest		20,544	(43,909)	146.79	–	–	–
Profit for the year		16,626,507	14,466,424	14.93	16,581,244	14,512,511	14.25
Earnings per share
Basic earnings per ordinary share (Rs.)	23.1	17.28	15.80	9.37	17.26	15.81	9.17
Diluted earnings per ordinary share (Rs.)	23.2	17.27	15.77	9.51	17.24	15.77	9.32

The Notes appearing on this Annual Report form an integral part of these Financial Statements.