Letter from the Chairman
Dear Friends,
Banks have a unique and privileged role to play in the life of a nation. On the one hand, we provide the means by which a society achieves economic prosperity.We help people purchase homes, save for their children’s education and secure their financial future. We support businesses as they attract investors, create jobs and seek new markets abroad. At the same time, banks are entrusted with safeguarding the stability of the financial system. We help to sustain a secure economic environment in which both individuals and governments can confidently set in place building blocks for the future.
In 2011 Commercial Bank embraced these interlinked responsibilities with new vigour – to the benefit of both customers and shareholders. We offered our customers a broader range of attractive, flexible products and services through an extended network of branches and ATMs. We helped our commercial customers finance business expansion and pursue more export opportunities. And we supported the national Government in its ambitious economic renewal initiatives, helping to finance key infrastructure projects as the country rebuilds following three decades of disruptive conflict.
In all its endeavours, Commercial Bank remains strongly committed to an exemplary corporate governance regime and the propagation of a truly sustainable business enterprise that nurtures and delivers value to all stakeholders.
The results achieved by the Bank in 2011 as detailed in the pages of this Annual Report, speak for themselves: The Bank once again established a new benchmark for profitability, surpassing last year’s milestone to post a record Rs. 8.048 Bn. in profits after tax. Shareholders will be pleased to see their loyalty rewarded with a gross dividend that will ultimately total Rs. 4.905 Bn., a 85.37% increase over 2010. With your valued support, the Bank had an exceptionally good year by virtually every measure. And our collective investment helped strengthen the foundations of sustainable growth in the Sri Lankan economy.
The Bank’s multifaceted agenda for the coming year is exemplified by two initiatives. The first focuses on technology. To attract today’s customers and forge long-term relationships, we must extend our digital banking strategy beyond the goal of simply reducing costs. By investing in innovative technologies, we can engage more customers with an enhanced user experience, mobile access to services and creative applications of social media.
Banks have a unique and privileged role to play in the life of a nation. On the one hand, we provide the means by which a society achieves economic prosperity.We help people purchase homes, save for their children’s education and secure their financial future. We support businesses as they attract investors, create jobs and seek new markets abroad. At the same time, banks are entrusted with safeguarding the stability of the financial system. We help to sustain a secure economic environment in which both individuals and governments can confidently set in place building blocks for the future.
In 2011 Commercial Bank embraced these interlinked responsibilities with new vigour – to the benefit of both customers and shareholders. We offered our customers a broader range of attractive, flexible products and services through an extended network of branches and ATMs. We helped our commercial customers finance business expansion and pursue more export opportunities. And we supported the national Government in its ambitious economic renewal initiatives, helping to finance key infrastructure projects as the country rebuilds following three decades of disruptive conflict.
In all its endeavours, Commercial Bank remains strongly committed to an exemplary corporate governance regime and the propagation of a truly sustainable business enterprise that nurtures and delivers value to all stakeholders.
The results achieved by the Bank in 2011 as detailed in the pages of this Annual Report, speak for themselves: The Bank once again established a new benchmark for profitability, surpassing last year’s milestone to post a record Rs. 8.048 Bn. in profits after tax. Shareholders will be pleased to see their loyalty rewarded with a gross dividend that will ultimately total Rs. 4.905 Bn., a 85.37% increase over 2010. With your valued support, the Bank had an exceptionally good year by virtually every measure. And our collective investment helped strengthen the foundations of sustainable growth in the Sri Lankan economy.
The Bank’s multifaceted agenda for the coming year is exemplified by two initiatives. The first focuses on technology. To attract today’s customers and forge long-term relationships, we must extend our digital banking strategy beyond the goal of simply reducing costs. By investing in innovative technologies, we can engage more customers with an enhanced user experience, mobile access to services and creative applications of social media.
Our second priority is talent development. As we continue to build capacity, we must also ensure that our people are equipped and motivated to do their best work. The Bank has invested in learning and development programmes so that we can count on a robust pipeline of skilled employees and future leaders who are ready to fill key positions.
It is this dynamic mix of innovation and talent that has transformed our Sri Lankan operations and enabled us to establish a meaningful presence in Bangladesh. Now we have set our sights on further expansion – into neighbouring markets such as Nepal, Myanmar, Cambodia and even Indonesia. We’re confident that we can build on our experience and momentum to become a significant regional player.
Credit for that continued momentum goes emphatically to the Bank’s employees, whose excellent performance, under the guidance of our former Chairman and our Managing Director, played a pivotal role in making 2011 such a successful year. I applaud their efforts and at the same time extend sincere gratitude to my Board colleagues for the inspiration and guidance they have provided to this institution. I would also like to take this opportunity to thank our former Chairman, Mr. Mahendra Amarasuriya, our former Deputy Chairman, Mr. B.R.L. Fernando and former Director Dr. Shelton Wanasinghe, who resigned at the end of the year under review. I warmly welcome Mr. Lakshman Hulugalle, Mr. Dharma Dheerasinghe and Mr. Preethi Jayawardana as members of the Board.
As I assume my new role as Chairman, the Bank looks forward to another challenging and rewarding year. We will continue to focus on being more accessible than ever to our customers, pursuing further innovation in product development, delivery channels, convenient technologies and overall customer experience. We expect 2012 to be a year of transformation as Commercial Bank seeks to cross historical boundaries and create a new niche in the region and, indeed, the global financial sector.
Dinesh Weerakkody
Colombo
February 09,2012
It is this dynamic mix of innovation and talent that has transformed our Sri Lankan operations and enabled us to establish a meaningful presence in Bangladesh. Now we have set our sights on further expansion – into neighbouring markets such as Nepal, Myanmar, Cambodia and even Indonesia. We’re confident that we can build on our experience and momentum to become a significant regional player.
Credit for that continued momentum goes emphatically to the Bank’s employees, whose excellent performance, under the guidance of our former Chairman and our Managing Director, played a pivotal role in making 2011 such a successful year. I applaud their efforts and at the same time extend sincere gratitude to my Board colleagues for the inspiration and guidance they have provided to this institution. I would also like to take this opportunity to thank our former Chairman, Mr. Mahendra Amarasuriya, our former Deputy Chairman, Mr. B.R.L. Fernando and former Director Dr. Shelton Wanasinghe, who resigned at the end of the year under review. I warmly welcome Mr. Lakshman Hulugalle, Mr. Dharma Dheerasinghe and Mr. Preethi Jayawardana as members of the Board.
As I assume my new role as Chairman, the Bank looks forward to another challenging and rewarding year. We will continue to focus on being more accessible than ever to our customers, pursuing further innovation in product development, delivery channels, convenient technologies and overall customer experience. We expect 2012 to be a year of transformation as Commercial Bank seeks to cross historical boundaries and create a new niche in the region and, indeed, the global financial sector.
Dinesh Weerakkody
Colombo
February 09,2012