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  • Annual Report 2016

    Simplify

  • https://www.nationstrust.com/ about/investor-relations/ annual-reports/302-ar

    Scan to view this report online

  • Simplify

    At Nations Trust, we want to transform and simplify our customers’ day to day lives. That’s why we’ve invested so much into increasing our volumes, consolidating our positions, streamlining products and processes, and optimizing functions throughout our branch network. We also offer a range of digital banking technologies that ensure secure, instant access to our products and services for customers from one end of the island to the other.

    We’re touching more lives than ever before, through a fast growing branch network, making our products and services available to thousands of urban corporates and retail customers and regional SME entrepreneurs as well.

    We’re making it easier than ever for every Sri Lankan to achieve financial security, with uncomplicated online and real-world processes that make every transaction quick, easy and quite amazingly…simple.

    Nations Trust Bank

    Simplify

  • In this Year’s Report

    Chairman’s Report

    Delivering Strategy Through Our Business Lines

    CEO’s Review

    Value Creation against Our Capitals

    Operating Context & Strategy

    Financial Statements

    22

    76

    48

    108

    60

    192

    Key Pages

  • Contents Group Overview and Governance Our Integrated Report 8 About Nations Trust Bank PLC 12 Performance Highlights 14 Investment Case 16 Business Pillars 17 Our Business Model 18 Value addition and trade-offs in our Capital inputs 20 Chairman’s Message 22 Corporate Governance Overview 28 Risk Management Overview 40 Board of Directors 42 CEO’S Review 48 Corporate Management 54 Chief Managers 56

    Operating Context & Strategy Determining strategy 60 Economic and Industry Overview 61 Emerging Trends in the Operating Context 66 Stakeholder relationships 67 Defining what is Material 70 Our Strategy 72

    Delivering Strategy Through Our Business Lines Consumer Banking 78 SME Banking 86 Corporate Banking 92 Leasing 98 Treasury 102

    Value Creation against Our Capitals Financial Capital 108 Manufactured Capital 120 Human Capital 122 Social & Relationship capital 130 Natural Capital 140

    Independent Assurance 145 GRI Index 146 Risk Management 151

    Statutory Reports Board Integrated Risk Management Committee Report 169 Board Credit Committee Report 170 Board Supervisory Committee Report 171 Board Nomination Committee Report 172 Human Resources and Remuneration Committee Report 173 Related Party Transactions Review Committee Report 174

    Annual Report of the Board of Directors on the Affairs of the Bank 175 Directors’ Interest in Contracts with the Bank 181 Directors’ Statement on Internal Control Over Financial Reporting 182 Auditors’ Report on Internal Control Over Financial Reporting 184 Board Audit Review Committee Report 185

    Financial Statements Directors’ Responsibility for Financial Reporting 190 Independent Auditors’ Report 191 Statement of Financial Position 192 Statement of Profit or Loss 193 Statement of Comprehensive Income 194 Statement of Changes in Equity 195 Statement of Cash Flows 196 Notes to the Financial Statements 197

    Corporate Governance 287 Details of Freehold Land & Buildings 313 Service Network 314 Glossary 318 Notice of Meeting 326 Form of Proxy 327

  • 4Annual Report 2016NATIONS TRUST BANK PLC

    Our Values

    Trust Agile Proactive

    Excellence Winning Together

    Corporate Profile • Corporate Accountability • Operational Reviews • Corporate Citizenship • Governance • Financial Statements • Supplementary Information

    We help people and businesses achieve today’s goals and tomorrow’s aspirations.

    Our Vision

  • 5

    Vision, Mission

    Corporate Profile • Corporate Accountability • Operational Reviews • Corporate Citizenship • Governance • Financial Statements • Supplementary Information

    Our Mission

    We will work SMART to be the most respected financial services provider.

    SMART Speed, More with less, Adaptable, Responsible, Tech-savvy

  • Group Overview and Governance

  • Simplify

    Digital Technologies We’re evolving seamless, user friendly digital banking solutions that enable instant access and a host of online financial services.

  • 8Annual Report 2016NATIONS TRUST BANK PLC

    Nations Trust Bank PLC’s strategy, management practices and operations are informed by a sound appreciation of the capital resources we input to our process and the stakeholder relationships we depend on to generate sustainable value. Our approach to corporate reporting complements this integrated thinking and adoption of the Framework issued by the International Integrated Reporting Council (IIRC) has enabled us to provide a balanced and comprehensive discussion on our economic, social and environmental performance against our goals, the successes and challenges we faced in generating value as well as our targets going forward.

    Scope and boundary Nations Trust Bank PLC follows an annual reporting cycle and this Report covers the period from 1st January to 31st December 2016. Any material events after this date and up to approval by the Board of Directors on 27 February 2017 have also been included. This is our 3rd integrated report and builds on our previous report for the year ending 31st December 2015. The scope of this report includes the operations of Nations Trust Bank PLC and its subsidiaries, Waldock MacKenzie Limited, Allied Properties Limited and Nations Insurance Brokers Limited. There were no significant changes to the Bank’s size, structure, shareholding or supply chain during the period under review. The boundary of the report extends to both financial and non-financial performance on material developments which objectively represent the events that shaped our performance during the year and are likely to impact our future performance.

    Integrated Welcome to our 3rd

    Annual report 2016

  • 9NATIONS TRUST BANK PLC

    Nations Trust Bank PLC follows an annual reporting cycle and this Report covers the period from 1st January to 31st December 2016. Standards and principles The Financial Statements presented on pages 192 to 196 of this Report have been prepared in accordance with the Sri Lanka Financial Reporting Standards, the Banking Act No. 30 of 1988 and the requirements of the Companies Act No.7 of 2007. Preparation of the Integrated Report was guided by the principles of the Framework, published by the International Integrated Reporting Council in December 2013. Our sustainability reporting is informed by the Global Reporting Initiative (GRI) G4 criteria ‘In Accordance-Core’ option and the Financial Services sector disclosures. The section on Corporate Governance (pages 28 to 39) describes how the Bank complies with the Code of Best Practice on Corporate Governance issued by the Securities and Exchange Commission of Sri Lanka and the Institute of Chartered Accountants of Sri Lanka as well as the Banking Act Direction No.11 of 2007. There were no significant restatements of previously reported economic, social or environmental information.

    External assurance The Bank utilizes the services of independent service providers to assess and provide assurance on elements of our external reporting. Assurance on the financial statements and the Director’s Statement of Internal Controls has been provided by Messrs. Ernst and Young, Chartered Accountants. This year, in order to ensure the credibility and validity of our non-financial information, we have also engaged Messrs. Ernst and Young to obtain assurance on our sustainability reporting.

    Overview and Governance • Operating Context & Strategy • Business Lines • Capitals Report • Statutory Reports • Financial Statements

  • 10Annual Report 2016NATIONS TRUST BANK PLC

    The content included in this integrated report has been carefully selected and structured to show how the Bank creates, delivers and ensures value creation for its stakeholders.

    • About the Bank provides the reader with a brief overview of the Organisation, its business model, how the Bank is governed and an overview of how we manage our key risks

    • Operating context and strategy describes the landscape in which we operate, the matters that could potentially affect our value creation process and our strategic focus areas

    • Our performance demonstrates how we performed against our strategic targets for the year, the successes and challenges and how our key business lines contributed towards delivering our strategy

    • Value creation against our capitals demonstrates how we transformed and added value to our capital inputs during the year, ensuring sustainable value creation to all our stakeholders

    How to read this Report

    https://www.nationstrust.com/ about/investor-relations/ annual-reports/302-ar

    Scan to view this report online

    www.ntb.lk Current promotionsAbout Nations Trust Bank

    Corporate Website

    Material issues (Pg. 70)

    Business Model (Pg. 80)

  • 11

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