BOC Logo

Our Strategy

Strategy And Resource Allocation

The Bank's strategic planning process ensures that its strategic priorities remain agile and responsive to changing stakeholder expectations and market dynamics. The Bank follows a structured process of planning, executing and monitoring to ensure performance aligns with its transformation strategy. Operating under a five-year Strategic Plan, the Bank reviews and updates this plan annually on a rolling basis, with input from Management and oversight from the Board of Directors. This strategic plan is launched amidst the presence of branch leadership, non-business unit heads along with the Bank's leadership teams and the Board of Directors fostering insightful discussions amongst the entire team. This participative approach creates engagement and commitment towards the implementation of the strategy.

Further, this well-established process has been instrumental in guiding the Bank in achieving consistent performance levels, which have been key to its position as the largest and most trusted bank in the country. To ensure successful execution, the Corporate Strategic Review Committee comprising the Bank's corporate management team headed by the General Manager oversees the execution of the plan, with performance tracked regularly at both senior and operational levels. Performance against the strategy is continuously monitored on a weekly, monthly, quarterly and annual basis across different leadership levels of the Bank. This consultative, bottom-up approach enables the Bank to continuously adapt to market changes, leverage new opportunities and successfully achieve its strategic objectives, securing its leadership position in the industry.

FRAMEWORK FOR STRATEGIC PLANNING

FOUNDATION
  • • Vision statement
  • • Mission statement
  • • Values
OPERATING CONTEXT
  • • External analysis
  • • Internal analysis
STRATEGIC DIRECTION & IMPLEMENTATION
  • • Strategic plan
  • • Budget and forecast
MONITORING
  • • Assess and review
  • • Revise and develop

BOC carries out a robust external analysis to ensure that it remains aware of market dynamics and global trends, along with an internal analysis which helps align its resources and capabilities to meet the evolving stakeholder expectations and external challenges. The external analysis takes into account PESTLE factors, stakeholder needs and expectations, as well as market trends and competitor strategies. Our internal analysis considers the views and feedback of our employees on customer expectations, research team and expert consultants.

BOC continued to align its actions with the strategic plan developed for five year period measuring progress against the expected outcomes of the key strategic imperatives. Furthermore, based on an extensive review of the operating context, the existing plan is re-assessed, reviewed and updated annually on a rolling basis.

Unlocking value by:
LEVERAGING OUR STRENGTHS S
Leading Banking Brand in the country.
Trust and confidence as a Government Owned Bank.
Wide product base with widespread service networks all over the country.
Larger correspondent Banking network which provide wide international touch points grid.
Only internationally rated local bank within the top 1000 Banks.
ADDRESSING OUR WEAKNESSES W
Credit Risk stemming from Stage 3 Loans and Advances.
Capital generation avenues are limited.
Stringent processes and procedures which limits timely actions.
Legacy systems and challenges in integrating.
Strategic pillars:
Chairman
Stability, Governance and Sustainable Growth
Chairman
Excellence in Customer Experience
Chairman
Digital Excellence
Chairman
Rewarding Credit Culture and Healthy Credit Portfolio
Chairman
Building a High-Performing Team
IDENTIFYING OPPORTUNITIES O
New business opportunities in expected economic growth.
Younger generation appealing more towards sustainable finance.
Tailored financial solutions.
Highly tech savvy customer prospects.
More opportunities in the areas of green financing.
SAFEGUARDING AGAINST THREATS T
Threats in Cybersecurity.
Rivalry from peers and non-peer institutions like Fintech Companies.
Money laundering related threats are increasing.
Implications from Climate changes.
Brain drain.
Intended outcomes:
Excellence in customer service

Ensuring consistent and superior customer experience across all brick and mortar, and virtual platforms.

Retaining market leadership

Leverage the Bank's brand strength and unmatched customer penetration, offer relevant products and superior customer experience: to maintain market leadership position.

Leading in digital adoption

Transforming the experience of both internal and external customers by adopting cutting-edge technology.

Best in sustainable banking

Effectively address challenges prevalent in the economic, social and environmental spheres by deploying proactive and meaningful solutions.

STRATEGIC PILLARS AND OUTCOMES

Stability, Governance and Sustainable Growth
WHY IT MATTERS

Stability, governance, and growth are the foundational pillars which play a crucial role in ensuring the long-term success and sustainability of the Bank.

RESOURCE ALLOCATION
LKR 207.3 million investment in community engagement
73 solar-powered branches at end of 2024
220 officers trained for E&S screening
Capitals employed:
Chairman
STRATEGIC INITIATIVES 2024
Strengthening revenue streams, optimising costs, and enhancing profitability.
Focus on high-yield assets.
Consistently increasing total assets through strategic expansion and financial management.
Restructuring of SoE exposures SLDB/ ISB finalised successfully.
Managing Capital Adequacy level.
Capital trade-offs:
Chaiman
2024 OUTCOMES
Economic Value Creation LKR 201.4 billion
Balance sheet growth 13%
Banking Brand position No. 1
Brand strength LKR 50.2 billion
Credit rating upgraded International: CCC+
Local: AA-
Adherence to all regulatory guidelines
GOALS FOR 2025 AND BEYOND
Continue the growth momentum and sustain the market leadership by diversification of revenue streams.
Achieve best in class compliance and internal controls.
Further enhance the Good Governance practices.
Enhancement effectiveness and productivity to maintain the cost to income ratio below the target set in the corporate budget.
Accelerate overseas operations.
Excellence in Customer Experience
WHY IT MATTERS

We place our customers at the heart of every decision, process, and interaction, as this leads to enhanced customer satisfaction, loyalty, and retention. It also allows us to innovate, meet changing customer demands, and thrive and grow in the competitive financial environment.

RESOURCE ALLOCATION
LKR 5.0 billion investment in brick and mortar infrastructure and LKR 3.4 billion digital infrastructure development
Branches relocated and transformed: 34
New smart zones- 19
New Premier Banking Centres at Galle and Kurunegala
Happy customer experience week from 07 October 2024 to 11 October 2024.
1,591 consumer awareness workshops conducted
No. of "Tea with BOC" programmes - 2,906
STRATEGIC INITIATIVES 2024
Providing easy service access
Reducing turnaround time
Empowering crucial customer segments, eg: SME, Youth, Women
Capitals employed:
Capital trade-offs:
2024 OUTCOMES
Net Promoter Score (NPS) 33%
Customer Satisfaction Score (CSS) 81%
Customer Effort Score (CES) 73%
Customer penetration 74%
Customers onboarded Over 230,000
GOALS FOR 2025 AND BEYOND
Expand the product portfolio range.
Offer a memorable service experience.
Strengthen customer relationship and confidence.
Attract non-customer bases.
Digital Excellence
WHY IT MATTERS

As technology continues to transform how consumers interact with financial services, achieving digital excellence has become a key factor in maintaining a competitive edge, enhancing customer experience, streamlining operations, and introducing innovative financial products and services.

RESOURCE ALLOCATION
LKR 3.4 billion investment in digital infrastructure
113 CRMs installed
New IPG merchants 134
No. of workflows automated 3
Core Banking application upgraded to Power 10
Capitals employed:
STRATEGIC INITIATIVES 2024
Enhancing the usability of existing platforms such as SmartPay, Mobile banking App, and BOC Connect.
Expanding digital banking services to international markets. Strengthening internet banking, mobile applications, and agent banking networks to ensure seamless service delivery.
Implementing digital verification and eKYC.
Enhancing the Bank's digital presence through digital media strategies.
Capital trade-offs:
2024 OUTCOMES
Growth in digital transactions volume 31%
Customers onboarded to virtual platforms 865,530
Successful cybersecurity attacks were not reported during the year
GOALS FOR 2025 AND BEYOND
Lead the digital banking market.
Strengthen internal productivity.
Be a data driven bank.
Achieve the highest level of system security and data protection.
Rewarding Credit Culture and Healthy Credit Portfolio
WHY IT MATTERS

A healthy credit portfolio plays a pivotal role in ensuring long-term financial stability and growth. It reflects the quality of assets and the Bank's ability to manage credit risk effectively.

RESOURCE ALLOCATION
LKR 67.5 billion of customer cash flow managed by BRRU.
Special Stage 3 Recovery Reward scheme.
Credit facilities screening through ESMS.
11 Recovery Workshops covering all provinces, one to one discussion covering all Stage 3 facilities.
STRATEGIC INITIATIVES 2024
Stronger recovery strategies and better asset quality management.
Revitalising lending growth through targeted sectors, competitive pricing, and improved credit approval processes.
Motivating recovery staff through rewards and recognition.
New products for youth, women and SMEs.
Capitals employed:
Capital trade-offs:
2024 OUTCOMES
Offered loans and advances LKR 2.4 trillion
Tailored rescheduling and restructuring packages
Intensified monitoring and prevention Weekly and daily monitoring meetings
Impairment provision as a % of gross loans (Provision coverage) 10%
No. of businesses revived 274
GOALS FOR 2025 AND BEYOND
Maintain market leadership in advances.
Reduce the Stage 3 ratio below the industry average level.
Increase green lending portfolio.
Increase SME lending.
Building a High-Performing Team
WHY IT MATTERS

Our employees drive the overall success of the Bank by consistently meeting goals, exceeding targets, and driving positive results. Thus, we focus on fostering an environment of continuous learning, collaboration, engagement, and motivation which in turn enables us to make better decisions, adapt to change, and stay competitive in the market.

RESOURCE ALLOCATION
Payment of LKR 40.3 billion as remuneration and benefits.
LKR 374.9 million invested in training and development.
LKR 194.6 million invested in staff safety and wellbeing.
STRATEGIC INITIATIVES 2024
Continued upskilling and reskilling of BOC team to drive organisational goals in the dynamic business atmosphere.
Increased focus on developing the succession pipeline.
Improved rewards recognition and career development mechanism.
Capitals employed:
Capital trade-offs:
2024 OUTCOMES
Retention rate 95%
Average training hours per employee 25 hours
Net profit per employee LKR 13.0 million
Female representation 60%
GOALS FOR 2025 AND BEYOND
Upskill the human resources of the Bank to cater to next level of banking.
Improve human capital productivity.
Improve human resource governance.
Improve employee retention and succession plan.
GRI 2-28

SUPPORTING FINANCIAL SERVICES

Strengthening Collaborative Partnerships

The Bank reaffirmed its pivotal role in the banking sector by maintaining active memberships across various industry stakeholders and professional bodies. These partnerships serve as a cornerstone for fostering synergies and driving collective growth of the financial services sector, industries and the economy.

By engaging closely with these organisations, BOC continues to enhance its capabilities, leverage industry expertise and uphold its commitment to excellence in banking and financial services. This steadfast collaboration underscores the Bank's dedication to pioneering innovation and delivering value to its customers and stakeholders alike.

During the year under review, the Bank retained the membership of the following institutions: