Annual Report 2008 - Ministry of Finance and Planning

3. Performance of Public Enterprises
150
The BOC’s assets grew by 11 percent in 2008 mainly due
to growth of investments in securities. The loan portfolio
indicated a decline of 5.1 percent in 2008 in comparison to
the last year.
The bank’s deposits increased only 2.07 percent in 2008
compared to the 17.5 per cent growth in 2007. The BOC
accounts for around 18 per cent of the total deposits of
banking industry. The non performing ratio has increased
from 3.9 percent in 2007 to 4.9 percent in 2008.
Table 3.7
Key Performance Indicators of BOC
2006 2007 2008
growth of 4.5 percent and 7.8 per cent respectively during
year 2008 (table 3.8).
The government infused Rs. 1.5 billion of fresh equity into
the bank during 2008. This along with the retained profits
of the bank helped the bank to improve its Tier II CAR from
6.9 percent as at end 2007 to 10.5 percent at end 2008.
Accordingly, the bank maintained the Capital Adequacy
Ratio (CAR) at the required minimum level of 10 percent
which reported below the required minimum for past few
years. The Bank won the people’s award for the banking and
financial brand for the year 2008.
Table 3.8
Key performance Indicators of People’s Bank
Number of Branches 305 307 309
Number of Employees 8,363 8,253 7,912
Assets (Rs. bn) 378.3 437.9 484.9
Deposits (Rs. bn) 262.6 308.6 316.1
Number of Deposits Accounts 6.2 7.0 7.5
Foreign Currency Deposits
(Rs. bn) 90.3 106.3 96.7
Corporate & Retail Lending
(Rs. bn) 223.2 282.4 271.1
Profit before Tax (Rs. mn) 4,137 4,518 5,231
Profit After Tax (Rs,mn) 2,627 2,843 3,561
Capital Adequacy Ratio (1) 11.9 12.1 11.3
Capital Adequacy Ratio (11) 12.3 13.2 15.9
Non Performing Loans (Rs.mn) 13,602 11,334 13,816
Non Performing Loan Ratio 5.8 3.9 4.9
Rating AA AA AA
2006 2007 2008
Number of Branches 630 639 642
Number of Employees 9,516 8,416 8,587
Assets (Rs. bn) 338.5 380.6 397.5
Deposits (Rs. bn) 269.9 300.9 324.5
Number of Deposits Accounts 10.5 11.0 11.6
Corporate & Retail Lending
(Rs. bn) 207.1 238.3 248.6
Profit before Tax (Rs. mn) 4,079 5,002 5,664
Profit After Tax (Rs,mn) 3,157 2,374 2,705
Capital Adequacy Ratio (1) 3.7 5.3 6.5
Capital Adequacy Ratio (11) 5.6 6.9 10.5
Non Performing Loans (Rs.mn) 15,951 14,865 17,857
Non Performing Loan Ratio 7.2 5.9 6.8
Rating A- AA AA
Source: Bank’s Annual Accounts
Source: Bank’s Annual Accounts
Performance of Peoples Bank (PB)
People’s Bank operates with the largest network of 642
banking outlet catering to the clientele in the entire country.
The Bank holds 15.4 percent of total asset base of the banking
industry. Maintaining the momentum of profitability
recorded by the bank in last few years, the bank increased
its profits before tax to Rs.5.6 billion in 2008 from Rs 5 billion
reported in 2007. Its total assets and total deposits recorded
Performance of National Savings Bank (NSB)
The NSB by its statute is required to invest not less than
60 per cent of its deposits in government securities. As at
31.12.2008, 69.3 percent of bank’s assets were in various
investment securities while only 24 percent of total assets
were in the form of advances. This has helped the bank
to maintain a very low ratio of non-performing advances
(1.7 per cent as at end 2008). The bank has successfully
Ministry of Finance and Planning Sri Lanka
Annual Report 2008