Annual Report 2012 - National Savings Bank

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22A REVIEW BY MR HENNAYAKE BANDARAGENERAL MANAGER / CEOsome opportunity areas, growing depositsis certainly a challenge, especially sincewe compete with other commercialbanks. The challenge led us to rethinkour strategies in more innovative waysin order to meet our targets in depositmobilization.One of our strategic routes is therestructuring of our branch operations in2013. As part of this plan, we reorganisedour team to be ‘eld people’ who wouldhave face-to-face contact with ourstakeholders. In this way, NSB would berepresented by more than simply our boldorange signage; our customers wouldnow meet caring, responsive servicepeople who would always be accessible tothem. The branch ofce network becamethe base upon which we would grow ourbusiness and with this came expandedbranch autonomy as well.The restructuring will be based on aRegional Management System and isdesigned to improve the overall efciencyof the branch network which we planto expand exponentially in the next fewyears. The branches will be headed byRegional Managers who will be fullyresponsible for branch performance andfor turning them into independent protcenters. The managers will be identiedleaders who will have total discretionarypower and authority, supported bya trained team that will focus oncapitalizing on market opportunities.An uphill taskYou will see a more detailed reviewof our performance in the FinancialStatements but I would like to give youa synopsis of our activities, in light of thefact that the Bank achieved these resultsin a very competitive and challengingenvironment.As a state bank, we are very aware thatthe contribution we make to the Treasurythrough taxes and transfers is also onewe make to the country’s economy - itsinfrastructure and development projects.This year, the sum paid by NSB as tax wasRs.3,077 million. Deposit mobilisationalso plays a major role in contributingtowards the national economy and NSBdeposits to the value of Rs.457,650million (an increase of 8.5%), wenttowards national development as well.While our asset base surpassed Rs.500,000 million milestone, recording agrowth of 9% to Rs.509,694 million, thereare a few other notable achievements inour nancial performance. One is thatthe Bank’s Tier I and Tier I & II capitalhave been maintained well above theregulatory minimum of 5% and 10%as was the statutory liquid assets ratio,which also demonstrates our relentlessdrive to take our performance andoperations beyond the requirements ofcompliance. Secondly, our NPL ratio isbelow the industry ratio, sitting at 2.71%.The need for changeOur vision is very ambitious and soare the proposals we have written intoour Strategic Plan. We will continueto review our overall operations tointroduce the necessary transformationsfor a fast evolving business landscape.We must not forget that the nation iscurrently accelerating a very ambitiousdevelopment plan while retaining strongeconomic fundamentals.We are well aligned to our vision,mission and the Strategic Plan we nowhave. We know that we will denitelybe able to achieve our vision within areasonable timeline. I strongly believethat our present team is a powerfullyNATIONAL SAVINGS BANK . ANNUAL REPORT 2012
23A REVIEW BY MR HENNAYAKE BANDARAGENERAL MANAGER / CEOunited and motivated one that cancertainly overcome the numerouschallenges emerging in this competitiveenvironment. We are very serviceoriented and we have great condencein our efciency, our innovation andproductivity and our capability to thinkdifferently, in ways that would benet ourbank and add value to the industry as awhole.We give our team the competitive edgeby continuing to upgrade our knowledge.We will also seek to acquire specializedexpertise in diverse areas of our industrythat will help manage change.The future beckonsSouth Asia’s economic hub - that’swhat Sri Lanka aspires to be. We arean extraordinary country. Despite achequered history, we are resilient.Our economic indicators have for themost part been consistent and in thelast three years, the dividends of peacehave been in evidence. Our growth isabove world average and among thefastest in South Asia. The world indicesshowcase Sri Lanka for performingbetter than most regional nations, whichmeans we have been getting things“We must not forget thatthe nation is currentlyaccelerating a veryambitious developmentplan while retainingstrong economicfundamentals.”right. The Government’s Ten YearVision is now well on track with theaccelerated development agenda alreadyin operation.In this larger canvas, I observe the bankingindustry as a key driver. We cannot forgetthat NSB is rmly aligned with this largernational vision - to develop the habits ofnancial empowerment and saving andto add impetus to the rural economy.We are seeing new business areasemerging, especially in nancialinnovation and real estate development.We also see the rural economy burgeoningto become a signicant contributor to thenation’s economy. And we know that wecan drive these business areas.Right now, our Strategic Business Plan2011 to 2013 has proved to be a goodbase. We have met our targets andhave absolute condence that we cancomplete our Strategic Plan as planned.In support of this, our Action Plan for2013 maps out our short term strategy(post a comprehensive SWOT analysis),designed to move us towards our newStrategic Plan of 2014 to 2016.Rooted we are and rooted we shall be.But these roots also harbour the buddingof newer and better prospects for us. Ourorigins in savings will always be the corearound which we operate, but in a fastpaced world we are now broadening ourfocus. We know there are opportunitiesout there for us and we intend to take fulladvantage of every one of them. Andthat vision is what will chart our courseinto the future.H M Hennayake BandaraGeneral Manager / CEOColombo28 March 2013NATIONAL SAVINGS BANK . ANNUAL REPORT 2012
Page 1: ROOTEDANNUAL REPORT 2012
Page 5 and 6: ROOTEDNATIONAL SAVINGS BANK l ANNUA
Page 7 and 8: 5MISSIONProviding our customers wit
Page 9 and 10: 7ROOTEDFor over 40 years, the Natio
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Page 13 and 14: 11HOW WE PERFORMED IN 2012FINANCIAL
Page 15 and 16: 13CHAPTER 1FIRMLY ANCHOREDSTRATEGY
Page 17 and 18: 15A MESSAGE FROM MR SUNIL S. SIRISE
Page 19 and 20: 17A MESSAGE FROM MR SUNIL S. SIRISE
Page 21 and 22: 19A REVIEW BYMR. HENNAYAKE BANDARAG
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Page 27 and 28: 25CHAPTER 2HOW WE PERFORMED IN 2012
Page 35 and 36: 33HOW WE PERFORMED IN 2012ECONOMIC
Page 37 and 38: 35HOW WE PERFORMED IN 2012ECONOMIC
Page 39 and 40: 37HOW WE PERFORMED IN 2012ACHIEVEME
Page 41 and 42: 39HOW WE PERFORMED IN 2012OPERATION
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Page 55 and 56: 53CHAPTER 3ROOTED IN OUR HERITAGEGO
Page 57 and 58: 55ROOTED IN OUR HERITAGEGOVERNANCE
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73ROOTED IN OUR HERITAGEGOVERNANCE
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85ROOTED IN OUR HERITAGEBOARD OF DI
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87ROOTED IN OUR HERITAGEBOARD OF DI
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89ROOTED IN OUR HERITAGEGENERAL MAN
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91ROOTED IN OUR HERITAGECORPORATE M
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93ROOTED IN OUR HERITAGEEXECUTIVE M
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95ROOTED IN OUR HERITAGEREPORT OF T
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101ROOTED IN OUR HERITAGEREPORT OF
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103CHAPTER 4ASSESSING AND MANAGING
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105ASSESSING AND MANAGING OUR RISK
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137CHAPTER 5BRANCHING OUT INTO NEW
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139BRANCHING OUT INTO NEW VENTURESS
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173BRANCHING OUT INTO NEW VENTURESG
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183CHAPTER 6THE RESULTS OF A CHALLE
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185THE RESULTS OF A CHALLENGING YEA
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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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