Velocity of Value Creating
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NATIONS TRUST BANK PLC – ANNUAL REPORT 2020 creating velocity of value www.nationstrust.com contents OUR BUSINESS AND LEADERSHIP CAPITAL MANAGEMENT FINANCIAL STATEMENTS About Us ..............................................................................................2 Financial Capital ........................................................................31 Directors’ Responsibility for Overview ..............................................................................................3 Digital Capital ............................................................................. 33 Financial Reporting .......................................................83 Performance Highlights .......................................................4 Manufactured Capital.........................................................35 Independent Auditors’ Report ......................................84 Non-Financial Highlights ...................................................5 Intellectual Capital..................................................................36 Statement of Financial Position ................................88 Chairman’s Message...............................................................8 Human Capital ........................................................................... 37 Statement of Profit or Loss .......................................... 89 Chief Executive Officer’s Review .................................10 Social and Relationship Capital ...................................41 Statement of Comprehensive Income .................90 Board of Directors ...................................................................12 Natural Capital ..........................................................................44 Statement of Changes in Equity ................................ 91 Corporate Management ....................................................16 Statement of Cash Flows .................................................92 Vice Presidents ...........................................................................17 Notes to the Financial Statements .........................93 CORPORATE GOVERNANCE & RISK MANAGEMENT SUPPLEMENTARY INFORMATION OUR STRATEGY AND Corporate Governance ........................................................48 PERFORMANCE Annual Report of the Board of Director GRI Context Index ..................................................................181 Business Overview .................................................................18 on the Affairs of The Bank .......................................52 Material Topics ......................................................................184 Value Creation Model ..........................................................19 Directors’ Interest in Investor Information ..........................................................186 Our Operating Environment .........................................20 Contracts with the Bank ..............................................56 Risk Management Annexure .....................................191 Stakeholder Engagement.................................................22 Risk Management Review .............................................58 Corporate Governance Annexure .............................211 Material Matters....................................................................24 Board Integrated Risk Management Ten Year Key Performance Trends ........................221 Driving Our Strategy ............................................................25 Committee Report ..............................................................71 Service Network ....................................................................223 Corporate Banking .................................................................27 Board Credit Committee Report ................................72 Glossary ....................................................................................... 226 Treasury...........................................................................................28 Board Supervisory Committee Report ................. 73 Administrative Details .................................................... 229 Commercial Banking ...........................................................29 Board Nomination Committee Report ................74 Notice of Meeting..............................................................230 Consumer Banking ................................................................30 Human Resources And Remuneration Form of Proxy (Voting Shareholders) .................231 Committee Report ............................................................75 Form of Proxy (Non-Voting Shareholders) ...233 Related Party Transactions Registration Form ...............................................................235 Review Committee Report ........................................76 Corporate Information......................................................IBC Directors’ Statement on Internal Control Over Financial Reporting........................77 Auditor’s Statement on Internal Control Over Financial Reporting ...........................................79 Board Audit Review Committee Report .............80 HOW TO READ THIS REPORT As part of our commitment towards reducing our environmental impact, we will only be printing a limited number of copies of this Annual Report. The Report is available for perusal and download through other mediums as listed below. Limited printed Online Digital copies are PDF format The PDF version of the Annual Report 2020 can be read at: available upon version request https://www.nationstrust.com/ creating velocity of value “Individually, we are one drop. Together, we are an ocean.” - Ryūnosuke Akutagawa Amid times of unprecedented change, at Nations Trust Bank we continued to create waves of opportunity and positive change for progressive growth. Over two decades, our dedicated team has worked tirelessly at a velocity, well-determined to increase the value of our impact. Inspired by a team of energetic, dynamic and tech-savvy individuals who have worked as a collective to serve the people against all odds – your Bank has positioned itself as a truly innovative, responsive and agile entity. As we faced the uncertainties of the year under review through the power of togetherness – NTB remained a constant support, enabling every stakeholder to forge ahead and overcome tomorrow. We’re focused on increasing the velocity of our value in the years ahead. The NTB waves are a metaphor for how challenges can be approached with a collaborative and dynamic spirit of complementary skills, optimism and togetherness. our business and leadership About Us 2 Overview 3 Performance Highlights 4 Chairman’s Message 8 Chief Executive Officer’s Review 10 Board of Directors 12 Corporate Management 16 Vice Presidents 17 about us Our Vision We help people and In Sri Lanka’s intensely competitive sector, Nations Trust Bank PLC businesses by providing has sought differentiation through leveraging transformative ideas and disruptive technology to build a lean, agile and competitive bank. financial services and information to achieve their Its focus on innovation, customer experience and digitisation has enabled it goals and aspirations in a to a carve a niche in the sector through customer-centric solutions which are sustainable way delivered through accessible and seamless channels. With a total asset base of LKR 338 billion as at end-December 2020, it is one of Sri Lanka’s fastest Our Mission growing banks. We will work SMART to become the most respected financial service provider. SMART Speed More with less Adaptable Responsible Tech savvy Values • Agile • Proactive • Excellence • Winning Together • Trust 2 Nations Trust Bank PLC overview OUR APPROACH TO REPORTING This Report has been prepared in accordance with the Integrated Reporting Framework published by the International Integrated Reporting Council (IIRC) and aims to provide a concise, balanced, and accurate reflection of our strategy, performance, opportunities, risks, and outlook. While this Report is primarily intended to serve the information needs of our capital providers, it also includes information that is relevant to our other stakeholders, showcasing how we create value for them. SCOPE AND BOUNDARY Changes in reporting: There were no major Reporting entity: The Report covers the changes to the Bank’s size, supply chain, operations of Nations Trust Bank (herein referred shareholding structure or supply chain during the to as the “Bank”) and its subsidiaries, Waldock year under review. The structure of the business lines has been refined for better business focus Mackenzie Limited, Allied Properties Limited and FORWARD-LOOKING STATEMENTS Nations Insurance Brokers (collectively referred and clarity, resulting in the Leasing division This Report contains certain forward-looking to as “Group”). The Report covers the Bank’s being classified as a sub-sector within Consumer statements regarding the Group’s performance, primary activities across several business lines Banking. Comparative financial disclosures financial position, and operations. These and support functions within Sri Lanka. for the previous year have been re-stated accordingly. There were no major restatements of statements involve risks and uncertainty as they Reporting period: We adopt an annual reporting non-financial information disclosed in the 2019 relate to events that occur in the future. These cycle, and this Report covers the period from