Thursday Nov 14, 2024
Thursday Nov 14, 2024
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Bank of Ceylon Chairman Dr. Gamini Wickramasinghe early this week announced he would resign from the post next Tuesday after having assumed duties in May 2007. His message to BOC staff to mark the New Year gives a good recap of significant progress made by the industry giant in recent years. Here is the full text of Dr. Wickramasinghe’s message:
Let me first wish you all a wonderful and happy new year filled with peace and prosperity.
I am pleased to inform you that the Bank of Ceylon completed 2012 as a year of success, achieving greater heights in the financial, international and operational fronts. This is highly commendable due to the fact that the results have been produced in a trying environment in which the outlook was heavily weighed on uncertainty.
Globally, the economic recovery post financial crisis suffered new setbacks in 2012. The euro zone is confronted with crises of structural fiscal and financial system issues whilst the United States is engrossed with sluggish growth forecasts that preoccupy investors.
The emerging world has not cushioned the global recovery enough as it did in the last few years. In this backdrop, it has been almost certain that Sri Lanka’s growth for 2012 is taking a toll of the weakened external demand. The bold policy measures taken in the last year enhanced the overall financial system stability; however, they also had a dawdling effect on the growth of the economy.
As the Bank of Ceylon embarks on its 74th year as the iconic ‘Bankers to the Nation’, it is important for us to recognise the strength and stability of its very foundation which we have been able to build upon successfully over the years. Looking back, the bank has accumulated many milestones of unprecedented success thereby securing its position as the nation’s foremost state banking giant.
2012 was a year of financial prowess for the Bank of Ceylon in both the local and international arenas. In revisiting this past year, I would like to highlight some of its select accomplishments. A major landmark achievement was the fulfilment of our corporate target, One10Twelve, which was set up after the cessation of domestic conflict in 2009.
The targets of achieving a one trillion rupee asset base and ten billion rupee profit by 2012 were achieved well ahead of schedule, with the profit target being achieved in 2010 and the asset target being achieved in May 2012. The Bank of Ceylon became the first corporate institution and first bank in the country to have a trillion rupee balance sheet, thereby creating yet another milestone in the history of financial services in the country.
On the international front, the bank successfully raised US$ 500 million through a listed senior unsecured bond in May 2012 from the international market to finance its domestic credit demand and manage the liquidity mismatch in the US dollar book. The bond was oversubscribed by 7.7 times to US$ 3.86 billion, showing the international market confidence placed in the bank. During this exercise, the bank was able to secure international rating that is in par with the sovereign rating of Sri Lanka.
On the local front, in November 2012, the bank’s rupee debenture issue of six billion was concluded with great success and was the biggest ever debenture issue made by any financial institution in the nation, clearly demonstrating the confidence of the local investor community in the bank. These accomplishments are testimony to the strength, stability and capacity of BoC and in turn, the trust held by the public in this esteemed institution. In the area of branch expansion, BoC opened its 1,000th customer service point in Puthukudiyiruppu in the Northern Province in early July 2012 and now has well over 1,100 service points to date. Also, in keeping with the national objective of supporting the country’s small and medium enterprises, we have now set up more than 10 SME Banking Centres in seven provinces with plans of having a total of 25 centres by the end of this year.
In addition to expanding its local footprint, BoC continues to hold the lion’s share of the market in KPIs such as assets, deposits, profits, inward remittances, NRFC deposits, trade finance, shareholder’s equity and treasury operations.
In our commitment to fostering national development and economic and social progress, BoC joined hands with a large public company to set up Yalpanam Dairy Ltd., a dairy processing centre in Kilinochchi to improve the livelihoods of people in the Northern Province and make the country self sufficient in milk products. More recently, we also introduced the ‘Thurusaviya Loan Scheme’, the first ever loan scheme to be introduced to rubber smallholders.
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| Chairman Dr. Gamini Wickramasinghe with Chief Marketing Officer Indunil Liyanage at the media briefing on Tuesday |
In addition, the bank continues to offer several attractive credit schemes to improve income generating advances for the small farmers and fisherman. Some of these schemes include ‘Uthuru Vasanthaya’ and ‘Nagenahira Navodaya’ (a special loan scheme for resumption of economic activities in the Northern and Eastern provinces), the Poverty Alleviation Microfinance Project, Govi Shakthi and Diyawara Diriya.
We have also joined hands with public and private ventures to support the development of national projects by providing loan advances for hydropower and wind power, tourism, housing, and road building infrastructure projects. The bank was also successful in completing two noteworthy CSR projects last year – creating the ‘Pibidena Thulana’ project at Doramadalawa to inculcate sustainable agriculture practices using organic farming techniques, and renovating the Ranorawa Rural Hospital. We also started a CSR initiative on the restoration of the highly sacred Deeghavapi historic site.
To top off its achievements for the year, BoC became the only state bank in the country to enter into the prestigious banker’s exclusive top 1,000. Earlier last year, it was also rated as the Asian Banker’s 17th Strongest Bank in the Asia Pacific region out of 500.
Having achieved the targets of the One10Twelve corporate plan, the bank is now in the process of developing a new corporate plan for the next three years. Further consolidation of its number one position and taking the bank to greater heights in service delivery and implementation of rapidly progressing ICT should be the key focus in shaping the bank for future generations.
In financial terms, the bank is aiming for a trillion rupees in savings by the end of 2013, thereby doubling the balance sheet to two trillion rupees by the end of 2014, the primary objective being for the country to achieve USS 4,000 per GDP capita by the end of 2015.
In conclusion, I would like to state that this will be my last New Year message as Chairman of Bank of Ceylon. It is with a sense of heartfelt sadness that I bid farewell to you taking with me nearly six years of cherished memories. It has been a privilege and honour to lead this great institution.
During my short stay within the bank’s long history, I envisioned repositioning it as a modern, strong, international bank which serves all communities of this paradise island. And I am glad I am leaving with a positive note on accomplishing this vision. The bank has expanded its share of assets in the commercial banking industry from 21% in 2007 to 25% in 2012, fortifying its position as a bank with no parallels.
In a span of almost six years, we have tripled our assets, deposits, loans and shareholder’s equity, and have seen our profits grow seven fold. These numbers give an accurate picture of the bank’s unprecedented growth during this period. Today, the bank is truly an international player having a wide overseas network; accessing global capital at its will in order to support the local economy. Yet, its main objective is clear, that is to serve every Sri Lankan alike from North to South and East to West irrespective of the ethnicity, language, occupation, etc.
It is the employees of this institution who have produced great milestones over the years. And I take this opportunity to express my sincere gratitude to each and every one of you for the relentless support rendered to me and the bank over the years. I earnestly believe that you would continue to extend your fullest support toward the bank’s progress and serve the people of this country in the years to come.
My sincere best wishes go to the President, the Secretary to the Treasury, the Governor of the Central Bank of Sri Lanka and my Board of Directors. On behalf of the bank, I would like to place on record our gratitude to our customers for their sustained support and patronage. The contribution made by auditors, legal advisers, consultants and correspondents is thankfully acknowledged.
I am confident that the Bank of Ceylon will continue to take strides on the profitable growth path in future with the continued support and patronage of the Sri Lankan Government, corporate management, all our staff, our customers and other stakeholders and well wishers.
I wish you all and the Bank of Ceylon my very best.
Financial and business highlights at BoC from 2007 to 2012
2007
1.Raised US$ 210 million, the largest internationally syndicated debt by a Sri Lankan issuer
2.Appointed co-manager of historic US$ 500 million debut bond issued by the Government of Sri Lanka
3.Commences ‘Gam Udana’ Village Development Program for deposit mobilisation
2008
1.Raised Rs. 4.2 billion via a listed subordinated rupee debenture of five years
2.Raised US$ 21.6 million via a private placement of a five year subordinated dollar debenture
3.Extends online banking to the Maldives enabling expatriate customers to access their accounts
4.First SMS based mobile scheme introduced by BoC, partnered with Paymate – available free of charge to BoC customers
5.BoC Annual Report 2007 wins gold at the prestigious annual ARC awards held in New York
2009
1.Celebrated 70th anniversary
2.The first State bank to launch an Islamic Banking Unit, which operates through island-wide network
3.Brought in Kilinochchi, Mankulam and Mulllativu branches into online branch network, the operations of which were disrupted during the war.
4.In aftermath of war, set up mobile banking centres for IDPS offering free bank services thereby coming to their aid after they endured many years of suffering.
5.Established a post conflict corporate plan titled One10Twelve to raise Rs. 10 billion in profits and Rs. 1 trillion in assets by 2012
6.Commenced operations of 24 hour call centre enhancing customer service commitment
2010
1.Converted London branch to an independent fully owned subsidiary of BoC operating in the UK
2.Established a successful investment banking unit.
3.Bank successfully raised Rs. 5 billion in the second public issue of unsecured, subordinated, redeemable five year debentures.
4.First State bank to establish a 24 hour service point
5.Achieved profit target of Rs. 10 billion two years ahead of schedule.
2011
1.Fitch Ratings Lanka Ltd. upgrades BoC’s National long term rating to AA+ stable outlook, which is the highest rating given to a local commercial bank
2.Became 17th strongest bank in Asia Pacific out of 500, as rated by Asian Banker
3.Introduces online leasing system
4.Opens Premier Banking Centre
5.Doramadalawa – agricultural village that promotes organic farming techniques
2012
1.In a span of almost six years, we have tripled our assets, deposits, loans and shareholder’s equity, and have seen our profits grow seven fold
2.Hold’s market leadership in assets, deposits, profits, inward remittances, NRFC deposits, trade finance, shareholder’s equity and treasury operations
3.Rated No. 1 Brand in the country by Brand Finance Lanka for the past four consecutive years
4.Fulfillment of 2009 corporate target One10Twelve. Achieved 1 trillion balance sheet in May, seven months ahead of schedule. Became the first institution and first bank in Sri Lanka to have a trillion rupee balance sheet
5.First bank in Sri Lanka to successfully raise USD 500 million through a listed senior unsecured bon in May 2012 from the international market. Bond was oversubscribed nearly eight times proving great success 6.Bank’s rupee debenture issue of Rs. 6 billion was successfully concluded in November
7.Came in Banker’s prestigious top 1,000 bank list in the world
8.Expanded share of assets from 21% in 2007 to 25% in 2012
9.Now has well over 1,100 service points including branches, extension offices and ATMs island-wide; 1000th service point opened in Puthukudiyiruppu (Northern Province) in July this year
10.Have more than 10 SME centres in the seven provinces
11.Set up Yalpanam Dairy Ltd. in Kilinochchi
12.Set up Thurusaviya loan scheme for rubber smallholders
13.Have financed over Rs. 130 billion development projects in Northern and Eastern Provinces after the war
