Annual Report 2012 - National Savings Bank

141BRANCHING OUT INTO NEW VENTURESSUSTAINABILITY REVIEWAs a business entity, we face a numberof risks in our daily operations thathave direct and indirect impacts onour bottom line. A key risk factoris uctuations in interest rates andexchange rates. These volatile situationsaffect our bottom line through impactson interest income, foreign exchangeincome and cost. Technologiesbecoming outdated is another risk weface, which can make us uncompetitivein the highly competitive nancial sectorin Sri Lanka, as consumers may switchto competitors that offer more efcientservices through the use of technologies.In addition, market volatility adds tounpredictability of operations, makingit difcult to steer a steady coursethrough the year based on pre-denedplans and goals. Meanwhile, regulatoryconstraints and changes also introducea risk that affects our revenues, costsand protability.However, despite these risks, we haveidentied a number of opportunitiesfor NSB’s future growth. For instance,the build up of condence among thegeneral public, with regards to the“A key risk factor isfl uctuations in interestrates and exchangerates. These volatilesituations affect ourbottom line throughimpacts on interestincome, foreignexchange income andcost.”nancial services sector, has ensuredgreater growth opportunities across thecountry, among new, potential consumergroups. Another opportunity we see onthe horizon is in contributing towardsoverall national development throughinvestments in government securities.Such investments will have an overallsocial and economic impact on theentire population, while also generatingreturns for the Bank. The Governmentguarantee on deposits has also openedup the opportunity to expand ourmarket share and operations.ORGANISATIONAL PROFILECorporate Information, Productsand ServicesEssential information about NSBand its subsidiary can be found in theCorporate Information Section, onpage 272 of this Annual Report. Fora full description of our products andservices, please see page 257.Operational Structure of theOrganisationNSB’s operational structure comprisesoperational divisions, support services,other divisions and subsidiary. Ouroperational divisions comprise theBranch Management, Credit, ProjectFinance, International Operations,Postal Banking and TreasuryOperations divisions, while our supportservices comprise the services providedby the Legal, IT, Finance & Planning,Human Resources Development,Training and Marketing divisions of theBank. In addition to these, the Bank’sstructure includes specic aspects thatcan be listed under ‘other sectors’which includes Risk ManagementNATIONAL SAVINGS BANK . ANNUAL REPORT 2012