FINANCIAL CAPITAL

Strong growth in core banking income

Rs Mn

NII -Rs 34.4Bn by 30.5%
Net Fee income – Rs 7.0Bn by 22.0%

Continuous improvement in cost to income

Rs Mn

Cost to Income
42.5% (2016) from 45.9% (2015)

Strong growth in profitability

Rs Mn

PBT – Rs 20.1Bn 33.9%
PAT – Rs 14.1Bn 35.4%

Strong Balance sheet growth

Rs Mn

Assets Rs 858.9Bn 18.4% ; industry 12% Group Assets Rs 901.4Bn 19.0%

 

%

Advances Rs 584.4Bn
17.3% ; industry 17.5%

 

%

Deposits Rs 623.5Bn 18.3% ;
industry 16.5%

 

%

Assets Rs 858.9Bn 18.4% ; industry 12% Group Assets Rs 901.4Bn 19.0%

 

%

ROA 1.8% from 1.6%
Industry 1.4%

 

Rs Mn

ROE 19.9% from 16.6%
Industry 17.3%

 

Rs

Tier I – 11.22% (statutory -5%) Total CAR – 15.27% (statutory -10%)

2012

2013

2014

2015

2016

Earnings per Share

18.94

17.59

22.47

25.41

34.25

Earnings per Share (Adjusted) (Rs)*

18.24

16.97

21.81

25.30

34.25

Dividend Yield (%) - Voting

5.7

5.8

4.4

4.0

3.8

Dividend Yield (%) - Non Voting

7.6

7.1

5.6

4.8

4.5

Asset Growth (YoY) (%)

17.3

14.3

12.3

26.6

18.4

Cost to Income Ratio (%)

53.0

46.0

47.4

45.9

42.5

Share Price - Voting (Rs)

148.00

147.00

194.90

210.60

225.00

Share Price - Non Voting (Rs)

112.50

119.00

152.90

177.90

190.00

Gross Dividends (Rs Mn)

3,379

3,400

3,431

3,451

3,517

* Earnings per share has been calculated using weighted average number of shares during the current year.


Human Capital

Staff Category

4

Corporate Management

14

9

Senior Management

36

145

Managers and Executives

469

371

Junior Executives

764

790

Bank Associates

1,077

265

Secretaries

5

0

Support Staff

209

Employment Type

16

Contract Staff

16

1,584

Permanent

2,574

Geographical Diversity

82

Central Province

221

41

Eastern Province

158

15

North Central Province

100

65

North Western Province

159

76

Northern Province

128

39

Sabaragamuwa Province

98

49

Southern Province

202

20

Uva Province

90

1,213

Western Province

1,434

46

Recruitments

29

69

Western Province

100

1,600

2,590

Aligning our People with the Bank’s Strategies to fuel a Game Change
  • Attrition 2.4% (2016) ; Benchmark 4%
  • Profit per Employee Rs 3.4Mn (2016); Rs 2.4Mn (2015)
  • 39.6 Training hours per Employee

Talent Development - Employee Category

Average learning
hours
(internal
training)

 

No. of Participants

 

Internal

External

 

13.8

Corporate Management

Senior Management

 

384

 

72

 

7

7.12

11.12

Managers and
Executives

1243

269

34

12.02

Junior Executives

1,487

73

6

8.76

Bank Associates

2,562

24

2

11.97

Secretaries

87

5.92

Support Staff

24

2

10.7

Contract/Outsourced Staff/interns

760

1

Talent Development - Learning Category

 

No. of Participants

 

Internal

External

Total

 

 

Leadership & Management Development

1,089

43

-

1,132

Marketing, Sales and Customer Service Excellence

2,111

36

3

2,150

Banking Operations Competency tests

822

11

6

839

Credit Evaluation and Administration

636

26

11

673

Treasury, Trade Finance & International

537

58

10

605

Compliance, Assurance, Risk, Legal

133

58

2

193

Electronic Banking

33

6

-

39

IT

9

23

15

47

Communication Skills

70

13

-

83

Financial Reporting and Taxation

80

-

80

Environment, Energy Efficiency

21

16

-

37

Orientation and People Management

899

44

2

945

Investment Advisory

187

27

-

214

Total

6,547

441

49

7,037

Talent Development - E learning

No. of Programmes - courses, quizzes, library

340

No. of Participants

32,841

Average participation per employee (activities)

7.84

Category wise age analysis

Category

18-24

25-34

35-39

40-44

45-49

50-54

>55

Total

Corporate Management

0

0

1

5

6

6

0

18

Senior Management

0

0

0

8

16

21

0

45

Managers & Executives

1

57

102

182

174

98

0

614

Junior Executives

0

218

266

377

220

54

0

1,135

Bank Associates

169

1,237

191

164

82

24

0

1,867

Secretaries

0

3

35

76

78

78

0

270

Contract Staff

15

3

0

0

1

2

11

32

Support Staff

0

1

23

52

67

66

0

209

Total

185

1,519

618

864

644

349

11

4,190


Service Analysis

No of Years

2016

<2

377

2-5

575

5-10

852

10-15

337

15-20

998

20-25

715

25-30

217

30-35

117

>35

2

Total

4,190


2.4 %

Attrition (Voluntary)

39.6

Training hours per employee

(excluding external and foreign training)


Intellectual Capital

Rs 18.6 Bn

Brand Equity by Brand Finance Lanka

3rd

By Business Today



Process Enhancements undertaken in 2016

  • Paperless office Initiatives, introduction of automated workflows
  • Converting paper statements to e-statements
  • Outsourcing of the security documentation repository
  • Re-designing some of the workflows and processes at the Centralised credit processing unit to improve turnaround time.


Accolades in 2016

  • “Best Retail Bank in Sri Lanka” by “The Asian Banker” at the annual Asian Banker Excellence in Retail Financial Services” Awards , 2016 for the eighth time.

  • Jonathan Alles, Managing Director / CEO was conferred the award “CEO with HR Orientation” at the Global HR Excellence Awards 2016, sponsored by CIMA – the Chartered Institute of Management Accountants UK and endorsed by World HRD Congress and Asian Confederation of Businesses.

  • Award for Excellence In Training & Development Award – Overall Award for Best Results Based Training, at the Asia’s Training & Development Excellence Awards 2016

  • Award for Best HR strategy in line with Business under the Asia Best Employer Brand Awards 2016

  • Third place in the National Productivity Awards, under the ‘Service Sector- Large’ category for the second consecutive year. First and second places were not awarded

  • Third in the Business Today TOP 30 Awards 2015/16

  • “Top 10 Best Corporate Citizens of Sri Lanka” at Best Corporate Citizen Sustainability Awards 2016 presented by The Ceylon Chamber of Commerce

  • Award for Best Presented Application for the Best Corporate Citizen Sustainability Award 2016 presented by The Ceylon Chamber of Commerce. The Jaffna Green Building won the prestigious ‘CIOB Green Mark - Gold Plus’ award at the second CIOB Green Mark Awards Ceremony

  • Special Award in recognition of the contribution as a service provider to exporters at the 24th Annual National Chamber of Exporters – Exports Awards 2016

  • Silver Award for the ‘Deal of the Year’ and Bronze Award for the ‘Entity of the Year’ at the Islamic Finance Forum of South Asia, organised by UTO EDU Consultant

  • Silver Award for ‘Excellence in Investor Relations’, by CFA Sri Lanka

  • Silver Award for overall reporting in the Banking Institutions category at the Annual Report Awards organised by the Institute of Chartered Accountants of Sri Lanka.

  • Niroshana Seneviratne, Chief Internal Auditor was conferred the “People Leaders Finance Award 2016” at the Institute of Personnel Management’s (IPM) National HR Conference in June 2016. This is a joint award by the IPM Sri Lanka in collaboration with the Institute of Chartered Accountants Sri Lanka (CA Sri Lanka).

Receiving the National Productivity Award under Service Sector – Large Scale category

At the CA Sri Lanka Annual Report Awards
 

Receiving the Award for Excellence in Investor Relations
 

Receiving the award for the third place at the Business Today Top 30 Awards
 


Manufactured Capital

12,755

POS merchants

73

Payee Partners






The Bank operates in all

09

Provinces

25

Districts



Rs Mn

Game Changing enhancements to our Manufactured Capital, in 2016

  • Launched a state of the art fully integrated electronic banking platform for Corporate and Retail banking; enabling product innovations and incorporation of Trade transactions, a first of its kind amongst local banks.

  • Was a pioneer in installing cash deposit machines across the island, with a network of 48 machines.

  • Introduced cash recycling ATMs enabling greater operational efficiency and cost savings.

  • Commenced “clustering” and restructuring of branches located at close proximity to each other, to optimise resource allocation.

  • Rationalised IT equipment across the branch network as per the analysis by the BTOM (Branch Target Operating Model) to enable optimal utilisation of our physical resources.


Natural Capital




8.88 MT/sqft

Carbon
footprint

10.2 %

Reduction in Greenhouse
Gas Emission

No. of
statements

  • Direct Energy 6%

  • Indirect Energy : 67%

  • Ozone Depleting Sources 27%

  • Diesel : 6%

  • Petrol : 1%

  • Electricity : 93%

Rs. 2.85 Bn worth of loans allocated to Hydro, Wind and Solar power generation

The Bank installed Solar energy at 37 of our branches during the year, to generate 2 Mega watts of power; reducing dependence on the national grid by 25% and achieving a reduction in our energy bills at a total investment of Rs 354 Mn.