Prudent Growth

• Deposits grew by 15.50% and advances grew by 10.31%
• Branch network expanded by 8 branches in Sri Lanka, 01 branch in Bangladesh
• Expanded the ATM network by 30 in Sri Lanka and 02 in Bangladesh including the first ever Foreign Exchange ATM
• Opened a twenty-four-hour automated banking centre
• Expanded our online banking system to reach 100,000
• Growth in Debit Card portfolio by 400,000
• New products introduced during the year - Speed Home Loans, ‘Achiever’ current account, hire purchase facilities, agriculture loans for professionals, Two new electronic cards namely ‘Udara’ and ‘Achievers’
• Launch of iOS application to facilitate iphones and ipads
• Many Awards and Accolades of recognition

• Expand the delivery channels of the Bank by 12 in the ensuing year.
• Five more twenty-four-hour automated banking centres
• Improving the investment banking and custodian services arm of the Bank
• Introduce a mobile application for Android users with functionality similar to the iOS version
• Launch an enhanced online banking platform for corporate customers
• Sustaining market leadership in interbank FX market
• Expand our mobile banking system to reach 130,000

Cost Efficiency via Innovation

• Introduction of two new regional offices to reduce approval time of loans
• Completion of the Loan Origination System (LOS), the centralised credit approval process
• Automating and improving our cash-dispensing capabilities and relaunching cash deposit capabilities
• Upgrade ComBank PayMaster processing to eliminate all paper-based applications
• All leasing-related operations of the Bank brought under a new lease operations module to improve the operational efficiency of the leasing function
• Implementation of Ambit Sierra Treasury, an end-to-end Treasury management solution provided by SunGard Inc.
• Launching web-based board papers, salary slips, e-attendance, e-leave systems, e-internal returns etc. to reduce the consumption of paper for internal documentation.

• Implement the security module on Bank’s Loan Originating System (LOS)
• Introduce new cost effective model for new branches
• Automating the generation of internal security documents
• Expand the Bank’s KIOSKs network to automate fundamental functions relating to customers
• Reduce customer turnaround time by centralising certain identified customer related functions of the Bank
• Set up a specialised and centralised marketing and recoveries team to further improve operational efficiency
• Automate recruitment process
• Introduction of a biometric system to replace the manual attendance registers used at present
• Debit card PIN mailers to be replaced with SMSs

Exemplary Governance

• Refining the self assessment process of the Directors
• Complied with all external regulatory requirements governed by the Corporate Governance directives and codes (CBSL, ICASL and SEC)
• All Non-Executive Directors reached independent status by end 2013
• Reviewed the status of compliance of regulatory requirements throughout the year
• A new Board - sub-Committee introduced during the year to further strengthen the governance structure

• Continue to strengthen the corporate governance mechanism within the Bank
• Further strengthen the monitoring mechanism of related party transactions

Managing Capital

• Managing the risk-weighted assets through prudent capital allocation
• Declaring Rs. 2/- per share to be satisfied in the form of issue and allotment of new shares as part of the final dividend of 2012
• Raised US $ 75 Mn. borrowing from International Finance Corporation which is eligible to be treated under Tier II capital of the Bank
• Improved CAR of the Bank
• Well-structured capital budgeting practices in the Bank

• Managing/maintaining the capital levels consistent with the risk profile of the Bank
• Maintain a sound Capital Adequacy Ratio to support future expansion plans of the Bank
• Maintain the Bank’s dividend policy in line with the overall goals of the Bank

Managing Risk

• Implemented the Internal Capital Adequacy Assessment Process (ICAAP)
• Implemented Basel II compliance software solution
• Implemented a robust stress testing framework
• Obtained the ISO 27001:2013 standard certification, the premier global information security standard
• Strengthened the Integrated Risk Management Department

• Setting up a new I.T data centre with enhanced security measures in line with the international standards
• Integrate ICAAP guidelines with the Bank's overall strategy
• Data intensive MIS approach for risk based decision making
• Moving into advanced approaches of Basel II

Being Responsible
to the Community

• Bank contributed Rs. 50 Mn. to the CSR Trust Fund to be in line with the policy
• 52 IT labs were donated to under-privileged schools which benefited 34,400 students through CSR
• 50 scholarships and laptops were granted to deserving university students
• 92 projects completed by the CSR Trust Fund
• Expanded/Improved the access points to low-populated or economically disadvantaged areas
• A customer survey designed to identify level of satisfaction of the Bank’s products and services, revealed improved customer satisfaction
• Designed products to benefit society (lending models for micro-entrepreneurs and agriculturists)
• Multilingual communication through media, point of sale materials to serve all ethnic groups
• Internship programme to facilitate 188 advanced level students

• Bank to continue its contribution up to 1% of its profit to the CSR Trust Fund
• Donate 40 IT labs to underprivileged schools through the CSR Trust Fund
• Continue to award scholarships to deserving university students

Minimising Environmental Footprint

• Screened the environmental impact through the Social and Environmental Management System (SEMS) when evaluating large lending propositions
• Installation of ATMs with RoHS (Restriction of Hazardous Substances) standards
• A formal process in place to dispose decommissioned ATMs through a body approved by the Central Environment Authority
• Predetermined screening on environmental and social aspects on all suppliers prior to sourcing
• Lending to renewable energy generation projects
• The Bank funded a project for coral replanting, which was commenced in 2013 and is expected to be completed in 2015
• Effectively manage the energy consumption by adopting various energy saving methods. (e.g. usage of LED bulbs within the entire network, efficient usage of Air conditioners, etc.)

• Continue to promote the paperless culture within the Bank
• Undertake CSR projects to preserve environment
• Continue the environmental screening process for large lending projects and selecting suppliers
• Continue to dispose decommissioned ATMs in accordance to the standards set by the Central Environment Authority
• Set up a primary data centre incorporating latest energy saving features. This project will save 300,000 kWh per annum of energy
• Develop smart buildings which used space and natural lightening efficiently

Human Resource Development

• Benchmark the salaries of the staff with a pool of banks through salary surveys conducted by an external organisation
• Career development through annual performance appraisal system
• Conducted programmes to enhance staff relations, productivity enhancement and talent management
• An employee satisfaction survey was conducted during the year
• Spent Rs. 54.9 Mn. on staff training and development
• Selected as the No. 1 Employer of choice among all corporates in Sri Lanka by LMD

• Develop an attractive Employer Brand Plan for new entrants of better quality
• Identify skill gaps of potential employees for grooming them to take higher responsibilities
• Further improve the existing grievance handling procedure
• Aggressively promote staff suggestion scheme
• Provide overseas training on a structured manner to enhance the knowledge and motivation of staff
• Identify and select young, dynamic and qualified group of employees and provide them comprehensive training similar to that of Management Trainees

Adding Value to Investors

• Consistent stream of dividend
• High dividend payout ratio
• Close monitoring of the share transactions as well as the movement in share prices
• Market capitalisation of the Bank improved by 19.05%
• Maintained strict internal control mechanism in order to secure the confidentiality of information which will have direct impact on the share prices of the Bank
• Return on Equity of 18.40% is above the industry average
• Continue with the shareholder loyalty card

• Maintain the Bank’s dividend policy in line with the overall goals of the Bank
• Continue to participate in investor promotions activities