Annual Report 2012 - National Savings Bank

31HOW WE PERFORMED IN 2012FINANCIAL REVIEWcan be cited for this declining trend.Consumers are transferring their postalsavings to Fixed Deposits at NSB andother nancial institutions, to gainhigher returns. Postal customers havealso been pulled away by competitorsoffering convenient micro creditschemes for deposits.NSB has responded to the change in thepostal sector by conducting mega savingscampaigns in Anuradhapura, Matale,Gampaha, Jaffna, Mullaitivu andTrincomalee Districts covering 497 Post/Sub Post Ofces and pocket campaignsin selected 23 Sub Post Ofces.AssetsWith the adoption of SLFRS/LKASthe Bank’s investments which werepreviously classied as investmentportfolio and trading portfolio werecategorised as assets held for trading,assets held to maturity, loans andreceivables and assets available for sale.Government securities and equitysecurities held for trading purposesare designated as Financial AssetsHeld for Trading. Unquoted longterm investments in equity capital andstrategic investments in quoted equityare reected in Financial InvestmentsAvailable for Sale. Investment inGovernment securities which are heldtill maturity, are reected in FinancialInvestments Held to Maturity.Rs.Mn700,000600,000500,000400,000300,000200,000100,000Total Assets404,3932010465,974509,6942011 2012Investments Held for Trading andInvestments Held to MaturityNSB’s total investment portfolio wasvalued at Rs.339,598 Million as atend December 2012, which has seen agrowth of 3.6% over the previous year.Of this, 95% is in government securities,while 2% was in equity investment andthe balance in alternative investments.The Bank’s assets grew by 9.4%,reaching Rs.509,694 Million fromRs.465,974 Million in 2011 against theBanking sector asset growth of 18% in2012. Sixty percent (60%) (2011 - 64%)of the Bank’s assets are invested innancial instruments held to maturity,2.1% (2011 - 2.5%) was invested inassets held for trading and 33% (2011 -29%) was given as loans and receivables.The fair value of the equity portfoliowhich was held for trading was Rs.4,453Million, as at 31st December 2012. Dueto the downturn seen in the ColomboStock Market, the market value ofNSB’s equity portfolio further declinedby 9%. This decline has necessitatedadjustment to the value of Rs.119Million, in order to compensate for thefall in value of market prices.NATIONAL SAVINGS BANK . ANNUAL REPORT 2012