Together with Customers

 

The world of banking is a highly competitive one. Customers are constantly being offered a plethora of products and services by many a bank. Ultimately they opt for the Bank that can provide the most favourable financial solutions, the greatest convenience, reputed safety and security and benchmarked service standards, among other criteria. Commercial Bank constantly strives to rise up to and meet these expectations...in turn, we are happy to welcome more and more customers who join us for the journey.

This is truly a journey taken together to prosperity.

 

 

Together with Employees

 

Profiling employee relationships with employers is much more complex than it has ever been...and that is a really good thing. Employee expectations have moved well beyond the contours of the job itself to areas such as job security, career growth and advancement, opportunities for skill enhancement and learning, working culture and more. The employer looks beyond the functional input of an employee, to loyalty, ‘ownership’ of their work and responsibility, productivity, happiness on the job, work and life balance and more. As an employer of choice, Commercial Bank aims always to meet its employees’ expectations as we journey together to prosperity.

The Bank as the benchmark private sector bank in the country employs over 4,700 permanent and full-time employees and over 650 employees on fixed term contract. As a policy, the Bank does not recruit employees on part-time basis. The Bank recognising the importance of its human resource capital makes every endeavour to support and uplift its standard by promoting a sound work environment, equal opportunity, training and skills development, freedom of association and to protect their human rights. A summary of total number of employees by employment contract, region and gender are given below.

 

Total Number of Employees by Employment Contract and Gender

	No. of Employees				Composition of Employees (%)
Employee Type	2013	2012	2011	2010	2013	2012	2011	2010
Full-time employees - Male	3,539	3,470	3,459	3,289	74.82	75.40	76.46	76.12
Full-time employees - Female	1,191	1,132	1,065	1,032	25.18	24.60	23.54	23.88
Total	4,730	4,602	4,524	4,321	100.00	100.00	100.00	100.00
Outsourced employees - Male	443	344	330	308	65.53	56.39	53.66	50.41
Outsourced employees - Female	233	266	285	303	34.47	43.61	46.34	49.59
Total	676	610	615	611	100.00	100.00	100.00	100.00

 

Total Workforce by Region and Gender

	2013				2012				2011				2010
	No. of Branches	No. of Employees			No. of Branches	No. of Employees			No. of Branches	No. of Employees			No. of Branches	No. of Employees
Province/Departments and Other Business Units		Male	Female	Total		Male	Female	Total		Male	Female	Total		Male	Female	Total
Central	20	216	63	279	20	213	64	277	16	205	59	264	16	208	59	267
Eastern	9	87	11	98	9	82	13	95	9	80	19	99	6	66	17	83
Northern	15	130	66	196	14	124	67	191	12	113	61	174	10	91	57	148
North-Central	7	79	11	90	6	75	10	85	6	77	7	84	5	69	9	78
North-Western	19	211	46	257	19	188	40	228	16	197	41	238	14	188	32	220
Sabaragamuwa	14	139	17	156	14	146	15	161	14	147	14	161	12	140	13	153
Southern	23	245	74	319	23	248	70	318	22	251	64	315	20	245	62	307
Uva	8	79	10	89	8	75	9	84	8	74	13	87	6	65	7	72
Western	120	1,286	557	1,843	114	1,286	529	1,815	110	1,299	469	1,768	98	1,236	466	1,702
Departments and Other Business Units		900	292	1,192		875	271	1,146		859	277	1,136		819	271	1,090
Bangladesh	18	167	44	211	17	158	44	202	17	157	41	198	17	162	39	201
Total	253	3,539	1,191	4,730	244	3,470	1,132	4,602	230	3,459	1,065	4,524	204	3,289	1,032	4,321

 

Total Number and Percentage of New Employees Hired by Age Group and Gender - Sri Lanka

	2013				2012				2011
	New Employee Hired		(%)*		New Employee Hired		(%)*		New Employee Hired		(%)*
Category	Male	Female	Male	Female	Male	Female	Male	Female	Male	Female	Male	Female
Corporate Management
Below 30 years	–	–	–	–	–	–	–	–	–	–	–	–
30 - 50 years	–	–	–	–	–	–	–	–	2	–	8.70	–
51 - 60 years	–	–	–	–	–	–	–	–	–	–	–	–
Executive Officers
Below 30 years	1	2	0.08	0.46	–	1	–	0.23	5	2	0.40	0.47
30 - 50 years	1	1	0.08	0.23	2	–	0.16	–	1	–	0.08	–
51 - 60 years	–	–	–	–	–	–	–	–	–	–	–	–
Junior Executive Assistants and Allied
Below 30 years	–	–	–	–	–	–	–	–	–	–	–	–
30 - 50 years	1	1	0.06	0.21	–	–	–	–	–	–	–	–
51 - 60 years	–	–	–	–	–	–	–	–	–	–	–	–
Banking Trainees
Below 30 years	206	95	67.76	43.58	106	101	22.70	61.96	291	52	53.99	44.07
30 - 50 years	–	–	–	–	–	–	–	–	–	–	–	–
51 - 60 years	–	–	–	–	–	–	–	–	–	–	–	–
Office Assistants and Other
Below 30 years	–	–	–	–	–	–	–	–	–	–	–	–
30 - 50 years	–	–	–	–	–	–	–	–	–	–	–	–
51 - 60 years	–	–	–	–	–	–	–	–	–	–	–	–
Total	209	99	6.20	8.63	108	102	3.26	9.38	299	54	9.06	5.27

* As a % of total male/female staff in each employee category

 

Total Number and Percentage of Employee Attrition by Age Group and Gender - Sri Lanka

	2013				2012				2011
	Employee Attrition		(%)*		Employee Attrition		(%)*		Employee Attrition		(%)*
Category	Male	Female	Male	Female	Male	Female	Male	Female	Male	Female	Male	Female
Corporate Management
Below 30 years	–	–	–	–	–	–	–	–	–	–	–	–
30 - 50 years	–	–	–	–	–	–	–	–	1	–	4.35	–
51 - 60 years	3	–	0.14	–	3	–	13.64	–	1	–	4.35	–
Executive Officers
Below 30 years	5	1	0.38	0.23	4	5	0.31	1.14	5	3	0.40	0.70
30 - 50 years	20	4	1.53	0.90	16	5	1.25	1.14	9	2	0.72	0.47
51 - 60 years	21	5	1.61	1.13	17	3	1.33	0.69	9	3	0.72	0.70
Junior Executive Assistants and Allied
Below 30 years	34	9	2.07	1.87	19	9	1.33	1.86	26	5	1.90	1.05
30 - 50 years	5	3	0.31	0.62	2	5	0.14	1.03	6	5	0.44	1.05
51 - 60 years	4	4	0.24	0.83	1	3	0.07	0.62	8	1	0.58	0.21
Banking Trainees
Below 30 years	49	14	16.12	6.42	23	9	4.93	5.52	47	6	8.72	5.08
30 - 50 years	–	–	–	–	1	–	0.21	–	–	–	–	–
51 - 60 years	–	–	–	–	–	–	–	–	–	–	–	–
Office Assistants and Other
Below 30 years	–	–	–	–	–	–	–	–	–	–	–	–
30 - 50 years	–	–	–	–	1	–	0.90	–	3	–	0.56	–
51 - 60 years	8	–	8.00	–	9	–	8.11	–	7	–	1.30	–
Total	149	40	4.42	3.49	96	39	2.90	3.58	122	25	3.69	2.44

* As a % of total male/female staff in each employee category

 

Total Number and Percentage of New Employees Hired by age Group and Gender - Bangladesh

	2013				2012				2011
	New Employee Hired		(%)*		New Employee Hired		(%)*		New Employee Hired		(%)*
Category	Male	Female	Male	Female	Male	Female	Male	Female	Male	Female	Male	Female
Corporate Management
Below 30 years	–	–	–	–	–	–	–	–	–	–	–	–
30 - 50 years	–	–	–	–	–	–	–	–	–	–	–	–
51 - 60 years	–	–	–	–	–	–	–	–	–	–	–	–
Executive Officers
Below 30 years	–	–	–	–	1	–	0.98	–	1	–	1.01	–
30 - 50 years	1	–	0.98	–	2	–	1.96	–	1	6	1.01	26.09
51 - 60 years	–	–	–	–	–	–	–	–	–	–
Junior Executive Assistants and Allied
Below 30 years	18	4	32.14	21.05	9	6	16.07	31.58	9	5	19.15	27.78
30 - 50 years	–	–	–	–	2	–	3.57	–	1	–	2.13	–
51 - 60 years	–	–	–	–	–	–	–	–	–	–	–	–
Banking Trainees
Below 30 years	–	–	–	–	–	–	–	–	–	–	–	–
30 - 50 years	–	–	–	–	–	–	–	–	–	–	–	–
51 - 60 years	–	–	–	–	–	–	–	–	–	–	–	–
Office Assistants and Other
Below 30 years	–	–	–	–	–	–	–	–	–	–	–	–
30 - 50 years	–	–	–	–	–	–	–	–	–	–	–	–
51 - 60 years	–	–	–	–	–	–	–	–	–	–	–	–
Total	19	4	11.38	9.09	14	6	8.86	13.64	12	11	7.64	26.83

* As a % of total male/female staff in each employee category

 

Total Number and Percentage of Employee Attrition by Age Group and Gender - Bangladesh

	2013				2012				2011
	Employee Attrition		(%)*		Employee Attrition		(%)*		Employee Attrition		(%)*
Category	Male	Female	Male	Female	Male	Female	Male	Female	Male	Female	Male	Female
Corporate Management
Below 30 years	–	–	–	–	–	–	–	–	–	–	–	–
30 - 50 years	–	–	–	–	–	–	–	–	–	–	–	–
51 - 60 years	–	–	–	–	–	–	–	–	–	–	–	–
Executive Officers
Below 30 years	9	3	8.82	12.00	–	–	–	–	1	–	1.01	–
30 - 50 years	1	1	0.98	4.00	7	5	6.86	20.00	11	2	11.11	8.70
51 - 60 years	–	–	–	–	–	–	–	–	1	–	1.01	–
Junior Executive Assistants and Allied
Below 30 years	–	–	–	–	–	–	–	–	3	–	6.38	–
30 - 50 years	–	–	–	–	3	1	5.36	5.26	6	2	12.77	11.11
51 - 60 years	–	–	–	–	–	–	–	–	–	–	–	–
Banking Trainees
Below 30 years	–	–	–	–	–	–	–	–	–	–	–	–
30 - 50 years	–	–	–	–	–	–	–	–	–	–	–	–
51 - 60 years	–	–	–	–	–	–	–	–	–	–	–	–
Office Assistants and Other
Below 30 years	–	–	–	–	–	–	–	–	–	–	–	–
30 - 50 years	–	–	–	–	–	–	–	–	–	–	–	–
51 - 60 years	–	–	–	–	–	–	–	–	–	–	–	–
Total	10	4	6.33	9.09	10	6	6.33	13.64	22	4	14.01	9.76

* As a % of total male/female staff in each employee category

 

Employee Related Expenses

	2013	2012	2011	2010	2009
	Rs. ’000	Rs. ’000	Rs. ’000	Rs. ’000	Rs. ’000
Training & development cost	54,903	47,453	47,522	36,471	24,592
Health & Safety related cost	277,955	219,673	163,738	166,967	144,641
Total staff emoluments	8,186,205	7,769,788	6,289,693	5,589,579	5,080,531

 

Percentage of Total Employees Covered by Employee Associations

	2013		2012		2011		2010
Name of Employee Association	No. of Employees	%	No. of Employees	%	No. of Employees	%	No. of Employees	%
Ceylon Bank Employees’ Union	3,102	69.04	2,928	63.62	2,803	64.75	2,608	63.25
Commercial Bank Executive Association	590	13.13	588	12.78	548	12.66	338	8.20
Total	3,692	82.17	3,516	76.40	3,351	77.41	2,946	71.45

 

Over 80% of the Bank’s permanent workforce has membership in either one of the two employee associations. The continuous and cordial engagement with the two employee associations has brought about many benefits to both employees and the Bank and has helped reaching amicable solutions. There are no employee associations in our operations in Bangladesh.

 

The Ratio of Basic Salary of Women to Men by Employee Category

	Ratio of Basic Salary Women to Men
Category	2013	2012	2011
Corporate Management	1:0.87	1:0.97	1:1.10
Executive Officers	1:0.98	1:0.96	1:0.97
Junior Executive Assistants and Allied	1:0.85	1:0.88	1:0.88
Banking Trainees	1:0.98	1:1.06	1:0.96
Office Assistants*	N/A	N/A	N/A

*There are no Female Office Assistants

 

Composition of the Board and Employees by Employee Category

	Gender (%)		Age Group (%)
Category	Male	Female	Below 30 years	30-50 years	Over 50 years
Board of Directors	100.00	0.00	0.00	0.00	100.00
Corporate Management	87.50	12.50	0.00	33.33	66.67
Executive Officers	74.66	25.34	16.39	73.45	10.16
Junior Executive Assistants and Allied	77.27	22.73	69.36	28.64	2.00
Banking Trainees	58.24	41.76	100.00	0.00	0.00
Office Assistants and Others	100.00	0.00	0.00	58.00	42.00

 

together with Investors

The shareholder relationship...close…and at our core. Security of investment, remunerative returns and lucrative growth are top of mind for our shareholders. Commercial Bank has these needs clearly in focus as we set about creating prime value for them. We are fortunate indeed to enjoy the invaluable, long term trust and loyalty of our shareholder family. With such strong support, it is easy for the Bank to plan mutual growth...yet another great example of journeying together to prosperity!

Shareholder Base

	2013	2012
No. of ordinary voting shareholders	9,091	9,509
No. of ordinary non-voting shareholders	4,336	4,349
Total	13,427	13,858

Composition of Shareholders

	As at December 31, 2013				As at December 31, 2012
	No. of Shareholders	%	No. of Shares	%	No. of Shareholders	%	No. of Shares	%
Ordinary Shares Voting
Resident	8,789	96.68	511,640,873	64.39	9,203	96.78	497,768,042	63.82
Non-resident	302	3.32	282,894,946	35.61	306	3.22	282,246,190	36.18
Total	9,091	100.00	794,535,819	100.00	9,509	100.00	780,014,232	100.00
Individuals	8,546	94.01	142,086,949	17.88	8,934	93.95	130,953,368	16.79
Institutions	545	5.99	652,448,870	82.12	575	6.05	649,060,864	83.21
Total	9,091	100.00	794,535,819	100.00	9,509	100.00	780,014,232	100.00
Ordinary Shares Non-Voting
Resident	4,233	97.62	42,218,874	77.40	4,251	97.75	41,852,800	78.27
Non-resident	103	2.38	12,324,348	22.60	98	2.25	11,620,948	21.73
Total	4,336	100.00	54,543,222	100.00	4,349	100.00	53,473,748	100.00
Individuals	4,119	95.00	32,321,004	59.26	4,127	94.90	32,479,975	60.74
Institutions	217	5.00	22,222,218	40.74	222	5.10	20,993,773	39.26
Total	4,336	100.00	54,543,222	100.00	4,349	100.00	53,473,748	100.00

 

Share Price Trend Over Last Ten Years

	2013	2012	2011	2010	2009	2008	2007	2006	2005	2004
Ordinary Shares Voting
Highest price (Rs.)	126.00	119.50	284.00	295.00	192.00	149.75	250.00	192.50	269.00	170.00
Lowest price (Rs.)	103.20	96.80	97.00	178.00	66.00	66.25	128.00	123.00	120.00	130.00
Last traded price (Rs.)	120.40	103.00	100.00	259.90	189.50	67.00	147.00	190.00	135.50	159.75
Ordinary Shares Non-Voting
Highest price (Rs.)	102.00	99.50	200.00	226.00	131.25	89.50	114.50	90.00	160.00	126.00
Lowest price (Rs.)	87.00	73.00	69.10	75.00	48.25	48.00	60.00	54.00	51.00	80.00
Last traded price (Rs.)	93.00	91.10	74.50	162.00	124.75	49.00	74.50	89.00	57.50	90.00

 

Information on Shareholders’ Funds and Market Capitalisation

	Shareholders’ Funds	Com Bank’s Market Capitalisation (*)	Total Market Capitalisation of the CSE	Com Bank's Market Capitalisation as a Percentage of CSE Market Capitalisation	Com Bank’s Market Capitalisation Ranking
As at December 31,	Rs. Mn.	Rs. Mn.	Rs. Mn.	%	Rank
2013	60,944	95,654	2,286,320	4.11	4
2012	52,577	80,341	2,167,581	3.71	5
2011	43,765	76,509	2,268,854	3.37	6
2010	33,965	91,824	2,280,874	4.03	4
2009	28,499	44,309	1,092,138	4.06	5
2008	25,891	15,630	488,813	3.20	4
2007	23,937	34,234	820,652	4.17	4
2006	15,843	25,368	834,763	3.04	5
2005	15,768	17,991	583,786	3.08	4
2004	13,911	10,389	381,913	2.72	6

* Commercial Bank’s Market Capitalisation includes only voting ordinary shares.

 

together with Government Institutions

We never lose sight of the role we play in the national scheme of things. The Bank maintains close and cordial relationships with all Government institutions, including legislators and regulators. We fully comply with all statutory and regulatory requirements in letter and spirit. Through such ethics and initiatives, the Bank stands together with the various institutions of Government as they strive to achieve the broader macroeconomic goals of the Nation.

Rs. ’000	2013	2012	2011	2010	2009
Taxes to Governments
Income Tax	4,065,008	4,197,004	3,014,361	3,794,100	2,886,853
VAT on Financial Services	1,968,954	1,987,313	1,522,972	2,708,918	2,264,116
Nation Building Tax	81,883	73,513	155,681	–	–
Crop Insurance levy	75,737	–	–	–	–
Sub total - Taxes to Governments	6,191,582	6,257,830	4,693,014	6,503,018	5,150,969
Taxes collected on behalf of Governments
VAT	674,270	–	102	201,792	518,527
Stamp duty	182,794	168,974	183,797	101,655	61,724
Withholding tax on dividend	120,876	452,386	315,040	169,915	131,736
Sub total taxes collected	977,940	621,360	498,939	473,362	711,987

 

 

Government Institutions for the Bank include the Central Bank of Sri Lanka, the Bangladesh Bank, the Department of Inland Revenue, the Ministry of Finance, the Registrar of Companies, the Colombo Stock Exchange, the Securities and Exchange Commission of Sri Lanka, the Sri Lanka Accounting and Auditing Standards Monitoring Board, professional organisations such as The Institute of Chartered Accountants of Sri Lanka, National Chamber of Commerce of Sri Lanka and other Government organisations.

Financial Assistance Received from Government

The Bank in the ordinary course of business granted several loans and advances to its customers and made several investments which are exempt from Income Tax under the Inland Revenue Act No. 10 of 2006 as detailed below:

• Interest Income on loans granted through Investment Fund Account created by the Bank - Section 13 (xxxxxx)
• Interest Income on loans granted to those companies which met the specified criteria - Section 13 (x) (i) & (ii), 13 (xx)
• Interest income and capital gains earned on investments in Sri Lanka Development Bonds and Sri Lanka Sovereign Bonds (SLDBs & SLSBs) issued by the Central Bank of Sri Lanka - Sections 13 (xxx) & 13 (xxxx) and 13 (xxxxx) (i) & (ii)
• Interest income from investments made outside Sri Lanka where such interest is remitted to Sri Lanka through a bank - Section 9 (m)
• Capital gain on sale of Shares - Section 13 (t)
• Fee and commission income earned in foreign currency - Section 13 (dddd)

 

The table below summarises the total tax savings earned by the Bank due to the above measures of the Government and also the notional tax credit claimed by the Bank on interest income earned on investments made in Government Treasury Bills and Bonds over the last five-year period.

 

For the year ended December 31, (Rs. Mn.)	2013	2012	2011	2010	2009
Tax saving	887.4	574.3	422.5	686.6	543.0
Notional tax credit claimed	903.6	329.9	350.0	572.9	332.5

 

 

together with Suppliers & Business Partners

Every link across the Bank’s supply chain is invaluable. We are committed to a furtherance of mutual prosperity as we first establish, then strengthen and grow relationships with an ever-widening supplier base who share our values in terms of long term sustainability. We are committed to march together to prosperity.

Bank’s supply chain plays a key role as they provide various goods and services required for running the business of the Bank. Following are the various types of suppliers that comprise the Bank’s supply chain.

Value of Goods and Services Bought-in by Types of Suppliers

Rs. Mn.	2013	2012	2011
Utility Service Providers Energy (Electricity and Fuel), Telecommunication (Data connections)	597.53	526.10	411.81
Material Suppliers Suppliers of various materials including Paper, IT and other stationery items	355.25	328.00	334.91
Assets Suppliers Vehicle suppliers, IT equipment/Software vendors, furniture/equipment suppliers	969.00	996.74	1,149.50
Premises Providers Individual building owners, Firms renting office space, Supermarket chains	767.83	638.86	573.25
Maintenance IT equipment/software maintenance companies, Office equipment maintenance companies, Janitorial Services	711.30	606.90	547.49
Human Resource Suppliers of Outsourced Employees Including Security Services	529.47	477.21	414.61
Staff Welfare Water suppliers, Food & Beverage providers, Trainers & Consultants	45.82	35.72	35.30
Communication Media, General Post, Telecommunication (Voice connections)	549.80	494.60	491.25
Services Insurance Companies, Lawyers & Law Firms, Auditors, Valuers	224.06	187.43	157.35
Travel and Transportation Courier Services (Inland and International), Cash Transporters, Goods Transporters, Rent-a-Car Companies, Air Travel including support services such as Ticketing Agencies	459.27	452.96	428.44
Contractors Building, Interior decoration and partitioning, Wiring & Plumbing	–	86.89	120.45
Waste Management Waste paper management agents/companies, Waste food management agents/companies, Used Furniture/Equipment management agents/companies	–	–	–
Emergency Aid Fire Brigade, Police	–	–	–
Total	5,209.33	4,831.40	4,664.37

 

Together with Society & Environment

 

Without a society to serve and an environment within which we may put down roots and grow, the Bank will cease to be. Achieving congruence with society and the environment is crucial to mutual well-being. There is no question but that we march as one towards mutual prosperity.

Bank’s Contribution Towards Enhancing Employability

	2013	2012	2011	2010	2009
Graduates recruited	6	14	37	31	40
No. of interns	188	46	10
No. of interns awarded with certificates	28	4

 

Access Points in Low-Populated or Economically Disadvantaged Areas

Sri Lanka’s 30-year war cut off a significant part of the country from key economic activities. The Northern and the Eastern Provinces in particular were not able to benefit from opportunities available to the rest of the country. Since the end of the war, we have expanded Bank’s operations in the two provinces by opening 14 new branches, revitalising communities and helping the disadvantaged to revive their prospects. The following table summarises the number of branches in operation and business volumes, underlining the Bank’s contribution to these recovering communities.

 

	2013	2012	2011	2010	upto end 2009
Northern Province
Number of branches	15	15	13	12	7
Deposits (Rs. Mn.)	24,573	21,907	18,475	16,564	15,114
Advances (Rs. Mn.)	7,914	10,459	10,002	4,311	1,656
Eastern Province
Number of branches	9	8	8	5	3
Deposits (Rs. Mn.)	4,870	4,501	4,337	3,970	3,730
Advances (Rs. Mn.)	3,596	3,873	3,792	2,376	1,561

 

Products Designed to Benefit Society

Over the past year Commercial Bank arranged financial facilities through a group-lending model for micro-entrepreneurs and agriculturists who are unable to secure conventional loans because of a lack of acceptable collateral. Financial assistance was provided through both bank-funded and refinance loan programmes.

 

Following are the loan amounts granted during 2013 under the above initiative:

Product Line	No of Beneficiaries		Amount Rs. Mn.
Microfinance	1,870		300
New Comprehensive Rural Credit Scheme	2,721		369