Management Discussion and Analysis

Intellectual Capital

Our intellectual capital comprises our knowledge-based intangibles and the organisational capital which includes the tacit knowledge, systems, processes and protocols in place. Built up and nurtured over decades. our intellectual capital differentiates our service offering and provide us a significant competitive edge. Ratings, rankings, awards and accolades bear testimony to growth of our intellectual capital enhancing our brand value.

Customer Confidence

For a bank, customer confidence is a pre-requisite for growth. While financial stability is key, our intellectual capital plays a key role in inspiring customer confidence. Sound corporate governance, risk management frameworks, business ethics and values are the foundation for sustaining customer confidence which needs continuous attention and nurturing.

Tacit Knowledge

Commercial Bank emphasises the need to adhere to structures, systems and processes built over decades of prudent operations. Our diverse employee pool coupled together with a culture of mentoring has facilitated the passing on of wisdom through the years. Learning from stories is a daily occurrence in the workplace, reinforcing lessons learned in a spirit of camaraderie. All this ensures that the Bank operates its business with entrepreneurial spirit tempered by wise counsel driving our business forward.

Figure 16

Our Governance Structures are considered fundamental in building intellectual capital providing strategic direction and ensuring rigorous consistent review of performance against agreed goals. The Corporate Governance Report on page 124 to 133 and page 354 to 371, provides a comprehensive outline of the Bank’s governance structures. Evolving over time and fit for purpose, they safeguard the Bank’s reputation and risk profile, providing guidance on conduct of business throughout the organisation.

Brand Building

Commercial Bank is ranked one of the top banks in Sri Lanka and in the world and has been recognised over the years for its excellence. Our rating of AA(lka) awarded by Fitch Ratings Lanka Ltd., is the highest rating awarded to any private sector bank in the country. Consistently included in the World’s Top 1000 Banks, our brand is gaining recognition beyond our shores as we increase our off-shore banking operations. Awards, Ratings and Accolades are given below are testimonial to, supporting our brand building.

Top 1000 World Banks – 2016
  • The only Sri Lankan bank to be ranked among the Top 1000 Banks of the World published annually by ‘The Banker’
    in UK for the sixth-year running.
Bank of the Year – 2016
  • The global banking fraternity’s most coveted award – the ‘Bank of the Year’ – presented by The Banker of the UK, ending 2016 with the industry’s ‘Oscar’ in respect of Sri Lanka.
  • This is the tenth occasion that the Bank has won this award, making it the only
    Sri Lankan bank to achieve this feat in the history of the awards.
Best Bank Award – 2016
  • Global Finance (USA), reaffirming
    the Bank’s status as the leader in its field
    for an emphatic 17th year.
  • Global Finance’s 2016 list of the World’s 25 Best Emerging Markets Banks in Africa, Asia-Pacific, Central and Eastern Europe, Latin America and the Middle East, names Commercial Bank alongside some of the leading banks in these regions.
Best Bank in Sri Lanka 2016
  • Adjudged the ‘Best Bank in Sri Lanka’ in 2016 by the Hong Kong-based ‘FinanceAsia’ magazine, one of the most respected financial publications in the region. The Bank was also presented with a Platinum Award for 20 years of excellence
  • This is the sixth ‘FinanceAsia Country Banking Achievement Award’ received
    by the Bank.
Best SME Bank – 2016
  • Awarded ‘Best SME Bank’ in Sri Lanka in 2016 by International Finance Magazine (IFM) of the UK, for ‘making a significant difference and adding value, and achieving the highest standards of innovation and performance’ for Small and Medium Enterprise clients.
Best Internet Bank in Sri Lanka – 2016
  • Recognised as the ‘Best Internet Bank in Sri Lanka’ by the prestigious Global Banking and Finance Review of UK.
The Most Respected Bank in Sri Lanka – 2016
  • Topped the LMD 100 ranking of Sri Lanka’s leading listed companies in terms of Assets, placed second overall on Profit After Tax (PAT) and fifth place overall on Turnover in the magazine’s published rankings for 2014-15.
  • The Bank also won the Sector Award for Banking at the ceremony.
Strongest Bank in Sri Lanka – 2016
  • Adjudged ‘The Strongest Bank in Sri Lanka in 2016’ by the Asian Banker, Singapore.
Global Brand Excellence Awards – 2016
  • Awarded ‘The Marketing Campaign of the Year’ for the 3rd successive year at the 2016 CMO Awards for Excellence in Branding and Marketing.
Annual Report Awards – 2016
  • Six awards including the Edmund J. Cooray Memorial Trophy for the Best Annual Report among banking institutions.
  • Bank’s Annual Report 2015 was adjudged the Gold Award winner in the Banking Sector by the country’s apex professional body in the sphere of accounting for the 13th occasion.
  • Bank’s Annual Report 2015 was also placed third overall and won three Silver Awards for Corporate Governance Disclosure; Corporate Social Responsibility Reporting and Integrated Reporting: Best Disclosure on Capital Management; as well as the Bronze Award for Integrated Reporting.
  • With these six awards, Commercial Bank became the most-awarded Corporate of the Event.
Best Private Bank in Sri Lanka – 2016
  • Recipient of the ‘Best Private Sector Bank in Sri Lanka’ award at the 2016 South Asian Partnership Summit and Business Awards presented by World HRD Congress and endorsed by the Asian Confederation of Businesses.
  • Awarded the ‘Best in CSR Practices’, ‘Best in Brand Excellence in Banking and Financial Services and Insurance Industry’ and, ‘Best Sustainable Bank’ in addition to being named the ‘Best Private Sector Bank’.
  • Commercial Bank was the most-awarded bank at the event.
Asia’s Best Integrated Report – 2015
  • Bank won the Asia’s ‘Best Integrated Report’ award for its Annual Report 2014 at the Asia Sustainability Reporting Awards organised by CSR Works International, Singapore.
ACCA Sri Lanka Sustainability Reporting Awards – 2015
  • The Bank’s Sustainability Report included in the Annual Reprot 2015 was adjudged the best in the Banking Sector at the ‘Sustainability Reporting Awards’ organised by the Association of Chartered Certified Accountants (ACCA) Sri Lanka liasion office.