Annual Report 2012 - National Savings Bank

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188THE RESULTS OF A CHALLENGING YEARANNUAL REPORT OF BOARD OF DIRECTORSFinancial ResultsInterest IncomeThe interest income of the Bank for 2012was Rs.52,673 Million (2011 - Rs.47,096Million) while the Group’s interestincome was Rs.53,780 Million (2011 -Rs.48,083 Million). Details are given inNote 4(a) to the nancial statements.Net ProfitThe Bank has recorded 33% declinein prot before income tax and 29%.decline of prot after tax in 2012. TheGroup’s prot before tax and prot aftertax for the year recorded a decline of34% and 29% respectively.Provision for TaxationThe Income Tax rate applicable for theBank on its operation is 28% and theBank’s operation are liable for ValueAdded Tax on Financial Services at therate of 12%.The Bank provided differed tax on allknown temporary differences underthe liability method. Information ofIncome Tax expenditure and DifferedTaxation are given in Note No13. inpage 222.Contribution to the GovernmentThe Bank contributed Rs.5,900 Millionby way of taxes and levies to theGovernment in 2012. (2011 - Rs.7,970Million). This consisted of Rs.1,838Million of Income Tax (2011 - Rs.3,193Million), Rs.1,239 Million of ValueAdded Tax (2011 - Rs.1,564 Million)& Rs.2,823 Million of contribution tothe Consolidated Fund (2011 - Rs.3,213Million).Service Charges to PostmasterGeneral (PMG)Service charges to the PMG for 2012amounting to Rs.111 Million has beenprovided for on the same basis as in2011.Stated CapitalThe authorised share capital of theBank is Rs.10 Billion divided into 1Billion ordinary shares of Rs.10/- each.The issued share capital of the Bank asat 31 December 2012 stood at Rs.3.2Billion. The Secretary to the Treasuryin his ofcial capacity holds the entiretyof the issued share capital.ShareholdingThe Government of Sri Lanka isthe sole shareholder of the NationalSavings Bank.NATIONAL SAVINGS BANK . ANNUAL REPORT 2012
189THE RESULTS OF A CHALLENGING YEARANNUAL REPORT OF BOARD OF DIRECTORSReserves2012 2011Rs.’000 Rs.’000Reserve Fund 1,713,127 1,626,500Revaluation Reserve 1,583,340 1,583,340Other Reserves 17,704,205 16,296,684Available for sale Reserve 135,119 345,959Information on changes of reserves isgiven in the Statement of Changes inEquity in pages 208 and 209.Pension FundA sum of Rs.705 Million (2011 -Rs.865 Million) has been provided forin the accounts on account of 2,437employees who are eligible for theNon-Contributory Pension Scheme(including retired employees).Property, Plant & Equipment,Leasehold Property andIntangible Assets.The total capital expenditure incurredby the Bank on the acquisitionof Property, Plant & Equipment,leasehold property and intangible assets(Including Capital Work In Progress)during the year amounted to Rs.826Million (2011 - Rs.826 Million) andGroup amounted to Rs.826 Million(2011 - Rs.826 Million), the details ofwhich are given in Notes 27 and 28 tothe Financial Statements on pages 235and 236 of this Annual Report.Market Value of Free HoldPropertyIn accordance with Bank’s policy torevalue its free hold Land & Buildingsin every 3 years, the Bank revaluedits Free Hold Land & Buildings on31st December 2010 by professionallyqualied independent valuers andbrought in to Financial Statements.Events after the Balance SheetDateNo circumstances have arisen sincethe Balance Sheet date which wouldrequire adjustments to, or disclosure in,the accounts.Outstanding LitigationIn the opinion of the Directors and theBank’s lawyers, outstanding litigationagainst the Bank disclosed in Note 44 ofthe Financial Statements will not have amaterial impact on the nancial positionof the Bank or its future operations.Board of DirectorsThe Board of Directors comprises sevenDirectors including the Chairman andtwo Ex Ofcio Members representingthe Ministry of Finance and Planningand the Postmaster General. TheMinister of Finance appoints theChairman and other four Directors.The Directors during the year is givenon the following page and their briefproles appear on page 86 of thisAnnual Report.NATIONAL SAVINGS BANK . ANNUAL REPORT 2012
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ROOTEDANNUAL REPORT 2012
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ROOTEDNATIONAL SAVINGS BANK l ANNUA
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5MISSIONProviding our customers wit
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11HOW WE PERFORMED IN 2012FINANCIAL
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13CHAPTER 1FIRMLY ANCHOREDSTRATEGY
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15A MESSAGE FROM MR SUNIL S. SIRISE
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17A MESSAGE FROM MR SUNIL S. SIRISE
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19A REVIEW BYMR. HENNAYAKE BANDARAG
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21A REVIEW BY MR HENNAYAKE BANDARAG
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23A REVIEW BY MR HENNAYAKE BANDARAG
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25CHAPTER 2HOW WE PERFORMED IN 2012
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33HOW WE PERFORMED IN 2012ECONOMIC
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35HOW WE PERFORMED IN 2012ECONOMIC
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37HOW WE PERFORMED IN 2012ACHIEVEME
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39HOW WE PERFORMED IN 2012OPERATION
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51HOW WE PERFORMED IN 2012FUTURE PL
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89ROOTED IN OUR HERITAGEGENERAL MAN
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103CHAPTER 4ASSESSING AND MANAGING
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105ASSESSING AND MANAGING OUR RISK
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Page 139 and 140: 137CHAPTER 5BRANCHING OUT INTO NEW
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251CHAPTER 7ANNEXURESNATIONAL SAVIN
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253STATEMENT OF FINANCIAL POSITION
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255TEN YEARS AT A GLANCE(Rs Mn)Year
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257OUR PRODUCTS AND SERVICESSAVINGS
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259OUR PRODUCTS AND SERVICES19. Ran
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261OUR PRODUCTS AND SERVICESOUR EXT
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263BRANCH NETWORKCentral Province1.
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265CORRESPONDENT BANKSCiti Bank NA,
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267EXCHANGE COMPANIESHabib Qatar In
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269GLOSSARYCredit RatingsAn evaluat
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271GLOSSARYReturn on Average Assets
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273CORPORATE INFORMATIONCOMPLIANCE
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Annual Report 2012 - National Savings Bank

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