Strategic Direction

In the context of opportunities and threats in our operating environment as well as our own internal strengths and weaknesses, DBB has formulated a five-pronged operational strategic plan covering a rolling three-year period.

On the business side, we aim for sustainable and profitable growth by

  • Enhancing business promotion;
  • Deepening market share in existing businesses; and
  • Diversifying our income streams.

Internally, we will focus on operational efficiencies and effectiveness by

  • Seeking cost efficient funding; and
  • Improving the level of employee satisfaction.

The strategic direction discussed herein is supplemented by our Management Discussion and Analysis as well as other relevant sections of this Annual Report.

Enhance Business Promotion

Achievements during the year Future direction
Developed a regional level marketing plan and 50 marketing campaigns were carried out during the year.

New client acquisition:

Facilities to new clients/total approvals,
DFCC Bank: 37%
DVB: 18%
DVB PFS*: 74%

* Personal Financial Services

Every employee to have a marketing orientation with a business development and customer focus

Transform current staff mix of sales to non-sales from 1:3 to 1:1 by 2016; recruitment of more Relationship Officers

Take advantage of new media to promote products and services more cost effectively

Continue training programmes on customer care

Diversify the customer base through relationship building

Simplify processes at every possible contact point


Deepen Market Share in all Key Business Segments

Achievements during the year Future direction
Our key business segments have shown good portfolio growth during the past as well as the year under review, namely:

Corporate banking: 17.4% YoY to LKR 44,964 million Branch banking (including Business Banking): 23.4% YoY to LKR 92,233 million.

Worked with regional media services for concentrated and localised campaigns Revised exposure limits in line with emerging trends and developments and improved the overall NPL ratio.

Consultancy assignment with HFC Bank in Fiji continued successfully

Synapsys Limited, the fully-owned IT subsidiary of DFCC Bank won an assignment to implement a core banking solution in Pan Oceanic Bank of Solomon Islands
Increase awareness levels of the corporate brand through personal relationships

Cross-sell DFCC Group products and services

Recruit more Relationship Officers for business promotion; set up a Corporate Relationship Unit within the Corporate Banking Department

Introduce industry sector focused marketing campaigns for different regions

Corporate Banking: Low margins and high volume strategy to reduce cost-per-delivery

Business Banking: Medium margin and medium volume strategy to stay within risk-return thresholds

Branch Banking: Medium to high margins with however, aggressive pricing for acquiring new relationships; and continued focus on SMEs

Expand international operations and consultancy services

Identify growth sectors to accomplish large volume of lending

Take anticipatory and preventive actions to maintain portfolio quality

Engage regularly with corporate clients through sponsorships, special events etc.

Develop a comprehensive ‘SME Strategy’ incorporating the rural banking sector and microfinancing sector


Diversify Income Streams

Achievements during the year Future direction
The ratio of non-interest income to net income improved to 32% in 2014/15 from 17% in 2013/14. (excluding exceptional and extraordinary items)

Invested LKR 1,517 million during the year in listed debentures

Invested LKR 500 million during the year in unit trust funds

Earned significant fee income from EIB credit line administration and an international consultancy assignment
Increase trading portfolio through investments in listed shares

Invest in listed debentures, securitised paper and unit trusts

Invest a portion of liquid assets in gilt-edged funds

Explore opportunities for off-shore operations

Explore investment opportunities in unrelated businesses


Seek Cost Effective Funding

Achievements during the year Future direction
Raised LKR Five billion through a listed debenture issue

Continued to administer the EIB credit line of EUR 90 million for Renewable Energy/Energy Efficiency and SMEs to be disbursed through DBB and two other participating financial institutions
Negotiate additional credit lines from established business partners

Consider new debenture issues

Consider securitisation of the leasing portfolio

Improve the CASA ratio of the DBB


Improve Employee Satisfaction Levels

Achievements during the year Future direction
Reviewed individual development plans submitted by employees to identify training needs

Provided relevant training to 75% of staff

Reduced staff attrition (including retirees) to less than 10% during the year

Continued the talent management process using the Nine Box model

Implemented the staff job rotation policy

Human Resources Department teams visited 70% of the branch network during the year to meet branch staff, discuss issues and concerns

Implemented the results of the Salary Survey
Enhance employee engagement and motivation by proactively addressing concerns raised through surveys, branch visits, grievance handling mechanisms, exit interviews etc.

Continue to improve employee communications, transparency of processes and methods of addressing employee needs and concerns

Identify training needs and provide a relevant response, including feedback on its effectiveness

Introduce job rotation between support and front line staff at common branches of DFCC Bank and DVB

Continue the talent management process using the Nine Box model