Annual Report 2012 - National Savings Bank

More documents

Recommendations

Info

270GLOSSARYindividually insignificant loans which areoverdue above 180 days.Impairment AllowancesImpairment allowances are provisions heldon the Statement of Financial Position asa result of the raising of a charge againstprofit for the incurred loss. An impairmentallowance may either be identified orunidentified and individual (specific) orcollective (portfolio).Intangible AssetAn intangible asset is an identifiable nonmonetaryasset without a physical substance.Interest in SuspenseInterest suspended on nonperforming loansand advances.Interest MarginNet interest income expressed as apercentage of average interest earning assets.Interest Rate SwapAn interest rate Swap is a derivative in whichone party exchanges a stream of interestpayments for another party’s stream of cashflows.Interest SpreadRepresents the difference between theaverage interest rate earned and the averageinterest rate paid on interest earning assetsand interest bearing liabilities, respectively.variables such as interest rates, exchangerates, credit spreads and other asset prices.Investment SecuritiesSecurities acquired and held for yield orcapital growth purposes and are usually heldfor maturity.Key Management PersonnelKey management personnel are thosepersons having authority and responsibilityfor planning, directing and controlling theactivities of the entity, directly or indirectly,including any Director.Liquid AssetsAssets that are held in cash or in a form thatcan be converted to cash readily, such asdeposits with other banks, bills of exchangeand treasury bills.Loans and ReceivablesNon derivative financial assets with fixed ordeterminable payments that are not quotedin an active market other than those intendsto sell immediately or in the near term anddesignated as fair value through profit or lossor available for sale on initial recognition.Loss Given Default (LGD)LGD is the percentage of an exposure thata lender expects to loose in the event ofobligor default.Market RiskThis refers to the possibility of loss arisingfrom changes in the value of a financialinstrument as a result of changes in marketvariables such as interest rates, exchangerates, credit spreads and other asset prices.MaterialityThe relative significance of a transaction oran event, the omission or misstatement ofwhich could influence the decisions of usersof Financial Statements.Net Interest IncomeThe difference between the interest incomefrom investment portfolio and the interestpaid on deposits.Non-Performing Loans (NPL)The loans which are in default for more thanthree months.NPL RatioTotal non-performing loans and advances(net of Interest in Suspense) divided by totalloans and advances portfolio (net of Interestin Suspense).Off Balance Sheet TransactionsTransactions that are not recognised as assetsor liabilities in the Statement of FinancialPosition, but which give rise to contingenciesand commitments.Operational RiskThis refers to the risk of loss resulting frominadequate or failed internal processes,people and systems, or from external events.ParentA parent is an entity that has one or moresubsidiaries.PortfolioA pool of investments including investmentin Government Securities, loans andadvances, equities, etc.Promissory NoteA short-term instrument whereby theborrower promises to pay the borrowedmoney on the production of the instrument.Probability of Default (PD)PD is an internal estimate for each borrowergrade of the likelihood that an obligor willdefault on an obligationNATIONAL SAVINGS BANK . ANNUAL REPORT 2012
271GLOSSARYReturn on Average Assets (ROAA)Net income expressed as a percentage ofaverage total assets, used along with ROE, asa measure of profitability and as a basis ofintra-industry performance comparison.Return on Average Equity (ROAE)Net income, less preferred share dividendsif any, expressed as a percentage of averageordinary shareholders’ equity.Related PartiesParties where one party has the ability tocontrol the other party or exercise significantinfluence over the other party in makingfinancial and operating decisions, directly orindirectly as per the Sri Lanka AccountingStandard No. 30 on ‘Related PartyDisclosures’.REPOsRepurchase agreements. Securities sold tolenders with the commitment to buy back ona later date at a fixed price plus interest.Revenue ReserveReserves set aside for future distribution andinvestment.Rupee LoanRupee securities issued by Central Bank ofSri Lanka on behalf of the Government ofSri Lanka.Risk-Weighted AssetsUsed in the calculation of risk-based capitalratios. The face amount of lower risk assetsis discounted using risk weighting factors inorder to reflect a comparable risk per rupeeamong all types of assets. The risk inherentin off –balance sheet instruments is alsorecognised, first by adjusting notional valuesto balance sheet (or credit) equivalents andthen by applying appropriate risk weightingfactors.Shareholders’ FundsA Capital Reserve created as per theprovisions of the Banking Act No. 30 of1988.Single Borrower Limit33% of the regulatory capital base.Statutory Reserve FundA capital reserve created as per theprovisions of the Banking Act No. 30 of1988.SubsidiaryAn entity, including an unincorporated entitysuch as a partnership, which is controlled byanother entity known as the parent.Tier I CapitalConsists of the sum total of ordinary sharecapital, statutory reserve fund and generalreserves.Tier II CapitalSupplementary capital representing 50%of the revaluation reserve and generalprovisions.Total CapitalThe sum of Tier I and Tier II Capital.Treasury BillA short-term debt instrument issued onauction basis by the Central Bank ofSri Lanka on behalf of the Government ofSri Lanka.Treasury BondA long-term debt instrument issued onauction basis by the Central Bank ofSri Lanka on behalf of the Government ofSri Lanka, which carries an interest coupon.Unit TrustAn undertaking formed to invest in securitiesunder the terms of a trust deed.Value AddedValue added wealth created by providing theservices to customers, less the cost of suchservices. The value so added is distributedamong the employees, Government by wayof taxes and levies and the balance retainedfor expansion and growth.NATIONAL 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
Page 11 and 12:
92000Establishment of subsidiary co
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
Page 23 and 24:
21A REVIEW BY MR HENNAYAKE BANDARAG
Page 25 and 26:
23A REVIEW BY MR HENNAYAKE BANDARAG
Page 27 and 28:
25CHAPTER 2HOW WE PERFORMED IN 2012
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
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
Page 43 and 44:
Page 45 and 46:
Page 47 and 48:
Page 49 and 50:
Page 51 and 52:
Page 53 and 54:
51HOW WE PERFORMED IN 2012FUTURE PL
Page 55 and 56:
53CHAPTER 3ROOTED IN OUR HERITAGEGO
Page 57 and 58:
55ROOTED IN OUR HERITAGEGOVERNANCE
Page 59 and 60:
Page 61 and 62:
Page 63 and 64:
Page 65 and 66:
Page 67 and 68:
Page 69 and 70:
Page 71 and 72:
Page 73 and 74:
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
85ROOTED IN OUR HERITAGEBOARD OF DI
Page 89 and 90:
87ROOTED IN OUR HERITAGEBOARD OF DI
Page 91 and 92:
89ROOTED IN OUR HERITAGEGENERAL MAN
Page 93 and 94:
91ROOTED IN OUR HERITAGECORPORATE M
Page 95 and 96:
93ROOTED IN OUR HERITAGEEXECUTIVE M
Page 97 and 98:
95ROOTED IN OUR HERITAGEREPORT OF T
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
101ROOTED IN OUR HERITAGEREPORT OF
Page 105 and 106:
103CHAPTER 4ASSESSING AND MANAGING
Page 107 and 108:
105ASSESSING AND MANAGING OUR RISK
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
137CHAPTER 5BRANCHING OUT INTO NEW
Page 141 and 142:
139BRANCHING OUT INTO NEW VENTURESS
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
173BRANCHING OUT INTO NEW VENTURESG
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186:
183CHAPTER 6THE RESULTS OF A CHALLE
Page 187 and 188:
185THE RESULTS OF A CHALLENGING YEA
Page 189 and 190:
Page 191 and 192:
Page 193 and 194:
Page 195 and 196:
Page 197 and 198:
Page 199 and 200:
Page 201 and 202:
Page 203 and 204:
Page 205 and 206:
Page 207 and 208:
Page 209 and 210:
Page 211 and 212:
Page 213 and 214:
Page 215 and 216:
Page 217 and 218:
Page 219 and 220:
Page 221 and 222: 219THE RESULTS OF A CHALLENGING YEA
Page 253 and 254: 251CHAPTER 7ANNEXURESNATIONAL SAVIN
Page 255 and 256: 253STATEMENT OF FINANCIAL POSITION
Page 257 and 258: 255TEN YEARS AT A GLANCE(Rs Mn)Year
Page 259 and 260: 257OUR PRODUCTS AND SERVICESSAVINGS
Page 261 and 262: 259OUR PRODUCTS AND SERVICES19. Ran
Page 263 and 264: 261OUR PRODUCTS AND SERVICESOUR EXT
Page 265 and 266: 263BRANCH NETWORKCentral Province1.
Page 267 and 268: 265CORRESPONDENT BANKSCiti Bank NA,
Page 269 and 270: 267EXCHANGE COMPANIESHabib Qatar In
Page 271: 269GLOSSARYCredit RatingsAn evaluat
Page 275: 273CORPORATE INFORMATIONCOMPLIANCE
show all

Annual Report 2012 - National Savings Bank

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?