Friday May 03, 2024
Friday May 03, 2024
Thursday, 4 April 2024 01:18 - - {{hitsCtrl.values.hits}}
Jonathan Alles, Managing Director/CEO, HNB
Damith Pallewatte, Deputy General Manager – Wholesale Banking Group HNB
Q: Reflecting on the past decade, what accomplishments stand out as pivotal moments for HNB?
JA: Looking back on my tenure, it has certainly been quite a journey. When I took over in 2013, the bank was in a stable position, but also faced notable challenges. There was clear agreement that a substantial course correction was required.
The gold price debacle had a significant impact on our profitability. But there were also more entrenched issues in terms of the bank’s overall agility, and the integration of technology. These issues had to be addressed in a strategic and systematic manner. We had to look beyond the symptoms, and focus on the deep-rooted causes that were holding HNB back from its true potential.
This in turn required us to develop strategies that strengthened resilience, while driving transformational change in our systems, processes and people. We had to continuously refine the culture, and talent within the organization, building up a new generation of leaders capable of understanding, integrating, and implementing this ambitious new vision.
By establishing a clearly defined culture of meritocracy, we were able to ensure that just as our processes and balance sheet were made more resilient, so was our team. This fortified our managerial depth and empowered everyone in the team with a voice, a stake in our future.
Some tough decisions had to be made. Teaming up with Deloitte, we embarked on the Everest Transformation project which yielded radical improvements in our operational efficiency and digitalization journey. These comprehensive internal realignments have been foundational to the remarkable growth that HNB has generated.
In that time, we have faced successive black-swan events, from the Easter attacks to the COVID pandemic, and the economic crisis of 2022. While at every step we faced unprecedented challenges, the comprehensive transformation of our operations, and the unwavering dedication of our team helped us navigate these turbulent conditions successfully.
As a result, today we have achieved record breaking results, including the highest ever Profit After Tax among our peers of Rs. 20.4 Billion and Group profit of over Rs 23 Billion which the highest among our peers. Over the last decade, deposits have grown by more than 4.5 times to over Rs 1.5 Trillion, gross loans have surpassed Rs 1 Trillion by over 3 times, while total Group assets crossed Rs. 2 Trillion. These outstanding results are the strongest validation of our collective efforts.
Q: How have you ensured a smooth transition of leadership while maintaining HNB’s growth trajectory?
DP: Once my appointment was announced, we immediately started working together to help me get familiarized with the entirety of the role. We have spent the past 9 months gearing up, sharing strategic insights and aligning on immediate priorities for consolidating growth.
We’ve kept our people — HNB’s greatest asset — at the heart of this transition. One of my first initiatives was to embark on a tour of all 10 regions, meeting with our teams on the ground. It was essential to get their buy-in and we also wanted to clearly demonstrate the significant opportunities that they will have to grow and develop as HNB continues to progress to new heights.
These face-to-face interactions with regional and branch managers and their teams reinforced the continuity of our vision but also allowed me to understand their perspectives and expectations firsthand. We did several rounds of visits, in which I met with them individually on their own turf, as well as with Jonathan through a series of regional meetings covering the entire network.
During these meetings, I also made sure to conduct digital surveys, to get a clearer understanding of specific issues, and potential solutions that were common to specific regions, and even some that were echoed across the entire branch network. Their feedback will be invaluable in steering our efforts moving forward.
We’ve also made sure to maintain open lines of communication with all stakeholders, from regulators to shareholders, and of course our esteemed customers. We want them to all understand that we are always available, and ready to listen, and integrate our insights and capabilities to help drive their ambitions. My commitment is to shoulder this responsibility with energy and optimism. The captain may be changing, but the course remains true and we are excited for what the Hatna Family is going to accomplish as we move forward together.
Q: What are the core principles that have guided HNB’s growth and success over the past decade?
JA: Central to our philosophy has been a steadfast commitment to integrity and ethical conduct at all times. We have strived to ensure that every decision and innovation was strictly aligned to regulatory standards but also designed to provide maximum value to our customers.
An openness to innovation, customer-centricity, and agile principles proved pivotal to our transformation. We’ve been relentless in our pursuit of technological advancements that provide customers access to cutting-edge, convenient banking solutions that simplify their lives. This emphasis on technological augmentation of banking has always been tempered with the firm understanding that banking is – at the end of the day - a service. That means that our success is built on human connections and experiences, and on ensuring that our customers are able to meet their aspirations. That is why HNB’s promise to always serve as a partner in progress is more relevant than ever today.
Building a culture of resilience has also been central to our strategy. Whether adapting to global economic shifts or local challenges, we’ve embraced change, viewing it as an opportunity for growth rather than a barrier.
Investing in our people has been equally fundamental. We’ve fostered an environment where talent is nurtured, leadership is cultivated, and achievements are recognized. It’s this belief in our people that has truly transformed our potential into tangible success.
Sustainability has also been crucial to our success, ensuring that our growth today doesn’t come at the expense of tomorrow. As such we have been mindful to balance our ambitions with the health of the wider economy and the wellbeing of the communities we serve.
These principles—ethical practices, innovation, customer-centricity, resilience, people empowerment, and sustainability—have guided us to the pinnacle of the Sri Lankan corporate sector, and will continue to serve as the bedrock of our success in the future.
Q: What are some lessons from your tenure at the helm that you have shared with Damith?
JA: Damith steps into this role with a remarkable track record. He started as a risk professional, and has gained experience in core banking areas, before heading our Wholesale Banking Group. The success of that unit is a further testament to his exceptional leadership skills.
My time at the helm has taught me that effective leaders need to be visionary, but also have their feet on the ground, and stay humble. You need to be able to build a team around you that you can trust, and rely on. You have to always put effort into guiding and mentoring them, while also drawing on their unique strengths and expertise to help guide your own thinking.
Less is more when it comes to leadership, and you don’t get time to do everything, so you need to focus on what will move the needle the most each day. You need to do your best and leave the rest. Trust in your team, listen to your customers, and lead with foresight and passion.
Q: As incoming MD/CEO, how do you plan to build on this legacy?
DP: Jonathan’s leadership fundamentally transformed HNB, making it a more agile, innovative, and responsive institution. His efforts to instill a culture that welcomes change and continuous improvement has set the best foundation possible for us to build on.
As I step into this role, my aim is to build on this legacy by further integrating technology into our operations and customer experiences. We’ve seen significant strides in SME and export development under Jonathan’s guidance. I plan to broaden this focus, diving deeper into measures and partnerships that will support local manufacturing.
At present, many Sri Lankan corporates and SMEs are highly leveraged. Yet to tap into their true potential, they still require further liquidity. We believe that support mechanisms beyond traditional debt financing can be harnessed, such as our venture capital subsidiary for equity participation. This will offer a more diversified range of financial solutions without eroding the banking sector’s balance sheets.
Value chain financing also represents a significant opportunity for HNB. By connecting top corporates, retailers, exporters and e-commerce platforms directly with grassroots entrepreneurs, we can create a more inclusive economic ecosystem. This approach not only aids financial stability for small-scale farmers but also enhances efficiency and profitability across the board.
In navigating this changing landscape, our focus may also extend to exploring global opportunities. By diversifying our revenue streams into different markets we can better mitigate risks, and strengthen our ability to support Sri Lanka’s economic revival.
Looking ahead, we aim to support sectors critical to our economy’s growth, like education, healthcare, and tourism, through innovative financial products and partnerships. This includes embracing modern agricultural practices and technologies to revolutionize traditional sectors and support the startup ecosystem more robustly.
My vision for HNB is to continue evolving as a dynamic, technologically advanced bank that remains deeply connected to our roots and committed to Sri Lanka’s sustainable economic development for generations to come.
