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Difficult markets and the emerging global crisis could not prevent the Bank posting an after tax profit of Rs. 4.268 Bn in 2008. The dregs of gloom that emerged in the West in the first half of the year percolated into Sri Lanka by the end of the year.
This was accompanied by news of
financial scams by a few local companies. The Bank’s performance though shone through this pall of gloom like a beacon and
is a sure indicator of its solid foundation and capacity to adapt.
The operating environment in Sri Lanka has been tough for many years. Rising oil prices, high inflation, the war and low business confidence have made things hard for the industry. That the Bank has managed to perform, and perform creditably in these years is satisfying. Our performance has been recognised globally in the awards we have been bestowed, in our entry into the global top 1,000 banks in 2008 and the rating we have achieved. Fitch yet again, confirmed the AA+ (lka) rating for the Bank. The Bank’s NPL and the cost/income ratio are among the lowest in the local banking industry. Yet we cannot downplay the significance of the current global financial crisis, which has pushed alarm bells in a hitherto unprecedented way.
Manoeuvring through the global crisis will be challenging not only for the Bank but for all business entities. To be surmounted, it requires the collective vision and energies of governments, regulators, the business sector and ordinary citizens.
The Bank is confident it can ride this crisis by sticking to the fundamentals: strong reserves, optimum liquidity, healthy capital adequacy ratios, product innovation, a lean organisational structure and a motivated management team and workforce. The Bank with its well-structured processes, disciplines and work culture will ride these rough seas and continue to deliver value to all our stakeholders.
Our strategy over the next few years will promote the Bank’s image as a reliable and prudent institution.
We will seek new customer relationships and explore new market segments, looking particularly at micro finance, wealth management, e-exchange and pawning. We will seek to develop low cost delivery channels for our products. At every moment we will focus on developing new products for existing markets and for the new ones. Maintaining the Bank’s technological superiority has always been a priority and this will not change. We will continue to invest in Bangladesh, expand our presence in other countries and look at opportunities in other regions. The Bank’s commitment to corporate social responsibility will not waver and we will be aggressive in looking for new avenues to invest in the future prosperity of our people. Today the global future is uncertain, but at the Bank we continue to invest innovatively in the future.
M.J.C. Amarasuriya
Chairman
Colombo
February 18, 2009
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