report of banking company

12/12/2017

Submitted To:

Niaz Mohammad

Assistant Professor, Department of Accounting

Faculty of Business Administration

American International University-Bangladesh

Integrated Reporting Practice in Bangladesh

Submitted By:

Group Number 8

SAHA, MRIDUL 16-31558-1

SAHA, SOJIB 16-31132-1

SOHEL, MD. SAHIDUL ISLAM SARKAR 16-31668-1

HOSSAIN, SUMAIYA 16-31596-1

ISALAM, SAIFUL 16-31344-1

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Letter of Transmittal

December 13, 2017

To

Niaz Mohammad

Assistant Professor, Department of Accounting

Faculty of Business Administration

American International University- Bangladesh (AIUB)

Subject: Report submission.

Dear Sir,

With due respect we would like to submit the report on “Integrated Report Practice in

Bangladesh”. This was the topic of our intermediate accounting course. We would like to say

that this report was prepared by us under the supervision of our course supervisor.

We believe that this project has given us an opportunity to enrich both of our knowledge and

experience. We made our best effort to fulfill the objective of the report and believe that it will

meet your expectation.

In preparing this report we have tried utmost to include all the relevant information and describe

to make the report comprehensive as well as workable one.

We, therefore, hope that you will enjoy reviewing this report.

Thanking You,

Sincerely yours,

SAHA, MRIDUL

______________

Group No: 08

Group Members

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EXECUTIVE SUMMARY

Integrated Reporting is a broad-based framework for business and investment decisions that are

long term, inclusive and with purpose basically, our report is based on the social, Environmental,

Economic condition of 5 banks like IFIC, DBBL, SOUTHEAST BANK, EBL and BRAC

BANK. Mainly, we focused on just 3 matters of 5 banks. These banks are doing well in this

separate 3 sectors. In this part we actually include the reason of the report and significance of the

report. Moreover, why the integrated reporting is necessary for the annual report of a company

it’s also mentioned here. A primary objective of the report is to identify the integrated reporting

practices in Bangladesh on banking sectors and the secondary objective of our report is to

identify the banks social condition, Environmental condition and finally the Economic condition.

We have faced some limitations which are, in a short period of time of few months it is so

difficult to give sufficient a good report. Therefore, we are unable to find every detail of these

bank due to lack of our knowledge and time phase. This part includes the Economic,

Environmental and corporate social responsibilities of Standard chartered bank, City bank, UCB,

National bank and BRAC bank. Elaborately which bank is doing which type of social activity,

what they do for environment, what is their contribution towards the economic growth of

Bangladesh etc. is clearly denote here?

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Table of Contents 1. Introduction................................................................................................................................4

1.1. Rationale.................................................................................................................................4

1.2. Objectives ...............................................................................................................................5

1.2.1. Primary Objective: ............................................................................................................5

1.2.2. Secondary Objective: ........................................................................................................5

1.3. Limitation................................................................................................................................5

2. Background of the Company ........................................................................................................6

Dutch Bangla bank .........................................................................................................................6

IFIC BANK .......................................................................................................................................6

BRAC BANK ....................................................................................................................................6

Eastern bank Limited ......................................................................................................................7

SOUTH-EAST BANK .........................................................................................................................7

3. Analysis ......................................................................................................................................8

IFIC bank limited ............................................................................................................................8

Dutch Bangla bank limited ............................................................................................................ 15

BRAC BANK LIMITED..................................................................................................................... 19

Eastern bank limited .................................................................................................................... 27

SOUTHEAST BANK LIMITED........................................................................................................... 32

4. Findings .................................................................................................................................... 35

5. Conclusion/recommendation ..................................................................................................... 35

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1. Introduction

An integrated report is a concise communication about how an organization's strategy,

governance, performance and prospects lead to the creation of value over the short, medium and

long term.

Integrated reporting requires thinking about value beyond financial terms – a long overdue

development given that around 80% of the value of company is typically in intangible assets.

Building strong relationships with stakeholders, building a loyal customer base, developing

intellectual capital and managing environmental risks, etc., tend to fall off the radar when

corporate execs think short term. But they are critical to long term success. Integrated reporting

keeps the focus on long term strategy and integrated reports are forward looking documents

covering strategy, the context in which it will delivered and how the company has, and will,

create value for providers of capital and others in the short, medium and long term. The

International Framework recognizes that long term success depends, amongst other things, on

sound management, relationships, a satisfied work force and the availability of natural resources.

Integrated reporting system has been created to enhance accountability, stewardship and trust as

well as to harness the information flow and transparency of business that technology has brought

to the modern world. Providing investors with the information they need to make more effective

capital allocation decisions will facilitate better long-term investment returns.

1.1. Rationale

Integrated report has been created for any organization that wants to embrace integrated thinking

and progress their corporate reporting. Businesses have reported breakthroughs in understanding value creation, greater collaboration within their teams, more informed decision making and positive impacts on stakeholder relations. For organizations or stakeholders interested in real

world examples and practical advice about the journey towards integrated report, networks have been established to share experiences and learning.

From Bangladeshi perspective, a great number of companies now a day are using Integrated Reporting system perfectly. The investors, who invest for any company can get the exact

information how much risk they need to take, how much profit they will get- all the specific information they get correctly. So, investors are getting more profitable by investing money in

the company. The importance of integrated report system is incredible. In an Integrated report, all the exact information is given like how much capital they have, how much they can use resources, how much expense will occur- everything can be got by this report. So, the annual

report of a company changes for this report. This reporting system has a great impact on final report of a company whether it is using in globally or domestically. So, the implementation of integrated reporting likely to change annual reports of Bangladeshi companies.

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1.2. Objectives

The objective of the report is to know the significance of Integrated Report for banking sectors in

Bangladesh. There are two types of objectives for any report one is primary objective and

another one is Secondary objective. These objectives are given below for this report.

1.2.1. Primary Objective:

To find out how the Integrated Reports help the banks in economic, social and environmental

aspects of business.

1.2.2. Secondary Objective:

Recognize the variety between the banks and how it helps to make the banks growth rate high by

using integrated report.

1.3. Limitation

i. Complexity.

ii. Lack of clarity.

iii. Lack of conviction that IR will actually achieve its goals were all apparent.

iv. Lack of consensus in terms of what exactly IR will look like.

v. Lack of accepted standards.

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2. Background of the Company

Dutch Bangla bank

Dutch-Bangla Bank started operation is Bangladesh's first joint venture bank. The bank was an

effort by local shareholders spearheaded by M Salahuddin Ahmed (founder chairman) and the

Dutch company FMO.

Dutch Bangla Bank was the first bank in Bangladesh to be fully automated. The Electronic-

Banking Division was established in 2002 to undertake rapid automation and bring modern

banking services into this field. Full automation was completed in 2003 and hereby introduced

plastic money to the Bangladeshi masses. Dutch Bangla Bank also operates the nation's largest

ATM fleet and in the process drastically cut consumer costs and fees by 80%. Dutch Bangla

Bank had pursued the mass automation in Banking as a CSR activity and never intended

profitability from this sector. As a result, it now provides unrivaled banking technology offerings

to all its customers. Because of this mindset, most local banks have joined Dutch Bangla Bank

banking infrastructure instead of pursuing their own.

Even with a history of hefty technological investments and an even larger donations, consumer

and investor confidence has never waned. Dutch-Bangla Bank stock set the record for the highest

share price in the Dhaka Stock Exchange in 2008.

IFIC BANK

IFIC Bank came in to existence in 1976 as a joint venture between the Government of

Bangladesh and sponsors in the private sector with the objective of working as a finance

company within the country and setting up joint venture banks/financial Institutions abroad. At

the time of opening them authorize capital was tk. 20 crore and paid up capital tk. 10 crore. IFIC

commenced its operation on February 28, 1977 with a Subscribed capital of Tk.5 core,

contributed by leading private sector entrepreneurs in the country. Earlier it was an investment

company but later on this Company has transformed into banking company In June 13, 1983 and

started activities from June 24, 1983 through Its Motijheel Branch. At the very beginning the 60

percent share are owned by private entrepreneur and 40 percent are owned by Govt.

BRAC BANK

BRAC Bank started its journey in 2001 and in just 15 years proved to be country's fastest

growing bank. Today, the bank has 176 Branches, over 500 ATMs and 448 SME Unit offices

across the country. It has disbursed over BDT 30,000 Crore of SME loan and has over 1,500,000

individual customers who access online banking facilities. BRAC Bank Limited has received

ICAB National Award for Best Published Accounts and Reports 2010 as joint third position

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under banking category. This bank also got award the Sustainable Bank of the Year 2010 at the

FT Sustainable Banking Awards 2010. BRAC Bank also received the prestigious Business

Award styled DHL-Daily Star Bangladesh Business Awards 2008 as 'Best Financial Institution

of the Year' for its innovation in products, services, financial performance, company

management and contribution to Bangladesh's development.

Eastern bank Limited

It was established in 1992, as a public limited company with limited liability under the bank

company’s act of 1991. Prior to 1992 EBL operated as BCCI Bank Ltd, which transformed into

Eastern Bank Limited. the bank provide products and services in retail banking, corporate

finance, asset management, equity brokerage and security. With already successful operation in

Hong Kong, a foothold in Myanmar, and windows soon to be opening in Guangzhou, China and

Kolkata and Guwahati in India, we are widening our banking horizon to become a regional bank.

We have been awarded with the Best Retail Bank in Bangladesh accolade for the last five

consecutive years since 2013. In 2016 the jury of Euro money Awards for Excellence conferred

the Best Bank in Bangladesh for its professionalism, prudence, and growth. We have in our

silver jubilee year also won all major national and international awards including Best Corporate

and Investment Bank accolade from Asia money and Best Bank in Bangladesh by Finance Asia.

SOUTH-EAST BANK

Southeast Bank Limited was established on March 12, 1995 with a dream and a vision to become

a pioneer banking institution of the country and contribute significantly to the growth of the

national economy. The Southeast Bank received its Banking License from the Bangladesh Bank

on March 23, 1995. Southeast Bank takes pride for bringing women into the banking profession

in a significant number for gender equality. At present, 18.14% of SEBL's employees are

women. The Bank maintained a capital adequacy ratio at 11.46 percent as on 31 December 2011

against requirement of 10 percent set by Bangladesh Bank. Southeast Bank Ltd. made operating

profits worth Tk. 5.50 billion in 2012 against Tk. 6.05 billion in 2011.

https://en.wikipedia.org/wiki/Limited_liability

https://en.wikipedia.org/wiki/Retail_banking

https://en.wikipedia.org/wiki/Corporate_finance

https://en.wikipedia.org/wiki/Corporate_finance

https://en.wikipedia.org/wiki/Asset_management

https://en.wikipedia.org/wiki/Equity_(finance)

https://en.wikipedia.org/wiki/Security_(finance)

https://en.wikipedia.org/wiki/Bangladesh_Bank

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3. Analysis

IFIC bank limited

Economical Perspective:

Economic Performance

Particulars 2016 2015 2014 2013 2012

Financial Position Matrix

Authorized capital 20,000 20,000 20,000 20,000 5,350

Paid-up capital 5,638 5,034 4,377 3,807 3,460

Shareholders’ equity 12,840 11,654 10,628 9,098 7,753

Deposits 160,155 146,820 129,746 110,464 92,433

Borrowings 5,827 7,201 5,621 3,493 874

Total liabilities 184,210 166,680 145,711 122,919 106,975

Loans and advances 137,118 123,269 102,282 84,110 77,160

Investments 25,205 28,498 22,845 21,171 15,671

Fixed assets 3,488 3,230 2,929 2,383 2,342

Interest earning assets 166,861 151,499 132,838 109,474 94,235

Non-interest earning assets 30,190 26,835 23,500 22,588 20,494

Total assets 197,051 178,334 156,339 132,062 114,729

Total off-balance sheet items 52,602 47,779 47,824 42,304 36,502

Financial Performance Matrix

Interest income 12,483 12,653 11,858 11,111 10,443

Interest expenses 8,108 8,907 8,467 8,494 7,637

Net interest income (NII) 4,375 3,746 3,392 2,617 2,806

Non-interest income 4,167 4,291 4,204 3,911 3,372

Administrative expenses 5,123 4,391 4,423 3,581 3,068

Investment income 2,100 2,375 2,377 2,170 1,814

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Operating profit 3,420 3,646 3,173 2,948 3,110

Provision for loans and assets 1,336 2,031 496 240 1,720

Profit before tax 2,084 1,615 2,677 2,708 1,390

Provision for Taxation 870 728 1,132 1,362 285

Profit after tax 1,214 887 1,545 1,346 1,105

Trade Business Matrix

Foreign Exchange Business 208,672 205,924 193,982 183,791 179,162

Import 92,927 87,307 85,326 84,899 80,710

Export 94,410 96,080 89,894 83,118 84,147

Remittance 21,335 22,537 18,762 15,774 14,305

Capital Measure Matrix (under Basel-II)

Risk weighted assets (RWA) 150,523 117,314 111,574 92,915 77,799

Common Equity Tier 1 Capital 11,609 10,508 9,695 8,324 6,738

Admissible Tier-2 Capital 5,318 1,305 1,613 1,307 1,185

Total Regulatory Capital 16,928 11,813 11,308 9,631 7,923

Common Equity Tier 1 to RWA 7.71% 8.96% 8.69% 8.96% 8.66%

Tier 2 Capital to RWA 3.53% 1.11% 1.45% 1.41% 1.52%

Credit Quality Matrix

Non-performing/classified loans (NPLs) 7,251 7,962 5061 3,168 4,096

Specific Provision for classified loans 2,355 2,700 1966 1,620 2,210

Particulars 2016 2015 2014 2013 2012

NPLs to total loans and advances 5.29% 6.46% 4.95% 3.77% 5.31%

Share Information Matrix

Number of shares outstanding 563.82 503.41 437.75 380.65 346.05

Market price per share 20.9 21.20 26.10 34.30 36.20

Operating profit per share 6.07 7.24 7.25 7.74 8.99

Earnings per share 2.15 1.57 3.07 3.07 2.90

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Dividend – stock 12.00% 12.00% 15.00% 15.00% 10.00%

Effective dividend ratio 12.68% 12.84% 16.04% 15.72% 10.00%

Dividend coverage ratio (times) 1.79 1.47 2.35 2.36 3.19

Market capitalization 11,784 10,672 11,425 13,056 12,527

Net asset value (NAV) per share 22.77 23.15 24.28 24.02 22.41

Price earnings ratio (times) 9.71 13.48 8.51 11.16 12.48

Profitability Ratio (%)

Return on average assets (ROA) 0.65% 0.53% 1.07% 1.09% 1.07%

Return on average equity (ROE) 9.91% 7.96% 15.66% 15.98% 15.43%

Loans and advances to deposits ratio/LD Ratio 85.62% 83.96% 78.83% 76.14% 83.48%

Gross profit ratio 51.31% 47.43% 47.29% 43.46% 44.72%

Operating profit per employee 1.35 1.46 1.26 1.15 1.28

Liquidity Ratio (%)

Equity to debt ratio 53.19% 57.54% 46.20% 25.92% 16.02%

Cash reserve ratio (CRR) maintained 6.56% 6.44% 6.58% 6.00% 6.15%

Other information (Figure in Number)

Number of deposit account 760,634 667,785 544,198 389,592 387,150

Number of loan account 27,968 34,414 33,056 29,315 22,981

Average deposit 153,487 138,283 120,105 101,449 82,770

Average borrowings 6,514 6,411 4,557 2,184 1,147

Average loans & advances 130,193 112,775 93,196 80,635 70,901

Average total assets 187,692 167,336 144,201 123,396 103,135

Average earning assets 159,180 142,168 121,156 101,855 86,455

Average equity 12,247 11,141 9,863 8,426 7,161

Deposit of the Bank stood at BDT 160,155 million in 2016 against BDT 146,820 million in

2015, representing a growth of 9.08%. Loans and Advances increased to BDT 137,118 million in

2016 from BDT 123,269 million in 2015, posting a growth of 11.24%.

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Import of the Bank was BDT 92,927 million in 2016 having 6.44% growth while Export of the

Bank was BDT 94,410 million in 2016 having 1.74% decline. Total Remittance was BDT 21,335

million in 2016 having a fall of 5.34%. However, overall Foreign Exchange Business grew by

1.33% from BDT 205,924 million in 2015 to BDT 208,672 million in 2016.

Net Interest Income increased by 16.79% from BDT 3,746 million in 2015 to BDT 4,375 million

in 2016 as well as Net Profit after Tax increased to BDT 1,214 million in 2016 from BDT 887

million in 2015, representing a growth of 36.88%. NPL ratio of the Bank decreased to 5.29% in

2016 from 6.46% in 2015. Asset size of the Bank stood at BDT 197 million in 2016 against BDT

178 million in 2015. in addition to traditional industries, are providing financial facilities to

RMG, Textiles, Power, Telecommunications, Packaging, Edible Oil Refinery, Healthcare,

Renewable Energy, Hotel & Tourism, Construction, Pharmaceuticals, Steel, Ship Building,

Trade & Commerce, Agri-Business (Poultry, Food Processing) sector etc.

At the end of 2016, total Shareholders’ Equity stood at BDT 12,840 million, which is 10.18%

higher than that of 2015.

Social Perspective:

Society

1. The Bank has donated for establishing PROYASH School at Rangpur under the

initiative of Bangladesh Army.

2. Students of the University of Dhaka receives stipend from IFIC Bank Trust Fund. The

fund was further enriched in 2016.

3. The Bank Donated Fund to Biswa Shahitya Kendra to promote educational activities.

4. IFIC made significant contribution by way of donation to Bangladesh Shooting Sports

Federation.

5. The winners of IFIC Bank Shahitto Purosker-2014 received their Prizes from IFIC

Bank.

6. The Bank distributed blankets among the distressed people in different districts.

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7. IFIC Bank provided blankets to Prime Minister’s Relief Fund and also distributed

blankets among poor people in different parts of the country through bank branches. The

Bank also made donations to the said Fund through Bangladesh Association of Banks

(BAB).

8. The Bank rewarded two winners for IFIC Bank Shahittyo Purosker.

9. The Bank handed over a donation to establish PROYASH School in Rangpur.

10. The Bank provided money for the IFIC Bank Trust Fund in Dhaka University from

where students and teachers will receive stipends and research grants every year.

11. Biswashahitya Kendra received a donation to run a programme for college students.

12. The Bank donated 40 bicycles to female students of Dalit-Harijon Community in Jessore

district.

13. PFDA-Vocational Training Centre received financial assistance for imparting education

and training to autistic children.

14. The Bank provided a fund to Bangladesh Shooting Sports Federation for development of

the shooting game.

15. The Bank donated tube-wells for inhabitants of former enclave at Panchaghar.

16. IFIC Bank donated money to run a Day Care Centre of private banks at Motijheel C/A.

17. IFIC Bank has introduced 10.00 Taka account program to include the un-served

population (like small/ marginal / low income professionals and marginal traders) under

financial services. IFIC Bank is also taking part all over the country in school banking

program.

18. IFIC Mobile Bank has the vision to facilitate the government bodies with our mobile

financial services for the students, elders, disables and freedom fighters.

Anti-Corruption

To minimize Fraud, the Bank has taken the following initiatives:

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1. Online Fraud Management Analyzer and Prevention Software

2. Dispute Management Database

3. Bangladesh Bank Report Automation

4. VISA PIN@ POS Services

5. Verified by VISA (VbV) Services to prevent E-Commerce Txn Fraud

6. EMV ATM Acquiring to prevent fraud and avoid Visa Liability Shifting EMV Chip

based Debit Card to prevent fraud & card cloning.

Anticompetitive Behavior

To facilitate one stop banking solution through reducing cost and hassle of maintaining multiple

accounts for deposit and loan, IFIC bank introduced first ever hybrid account in entire banking

history of Bangladesh in the name of “Aamar Account”. Customer will get interest from deposit

balance on daily basis and can enjoy loan facility whenever needed with 50% reduced rate than

credit card. One card of this account will act as debit card and credit card. Through this account

IFIC bank first time introduced 1 hour loan processing only for Govt. employees in Bangladesh.

For the first time in Bangladesh, IFIC Bank has introduced mobile banking in Bangla to make the service more user friendly.

Public Policy

Currently IFIC Mobile Bank is available to the subscribers of Grameenphone, Banglalink and

Airtel which cover more than 80% of the mobile phone users of the country. Teletalk and Robi

subscribers will be brought on board very soon.

IFIC Mobile Bank has integrated with Mobicash (MFS distribution channel of Grameenphone)

to introduce almost 60,000 additional pay points for the customers.

Labor Practice & Decent Work

Training and education

Training and development programs are designed to ensure appropriate employee knowledge

and skills for performing current jobs as well as future responsibilities. In 2016, 4591

participants attended in 233 Training Programs on different areas of Banking, Finance, Customer

Service, IT and Leadership. In 2016 we have taken initiatives to standardize our training courses

in major areas of banking keeping in mind bank’s requirement like Basics of Banking, Basic

Course on Credit Management and Basic Course on Trade Processing. We started Train the

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Trainers (TTT) programs in collaboration with Malaysian Institute of Management for capacity

building of bank’s trainers and enhance bank’s training standard.

Human Right

Non-Discrimination

IFIC Bank is committed to support women entrepreneurs through providing loans and organize

training etc. In 2016, 301 number of loans amounting BDT 61.62 core was disbursed to Wes.

Environmental Perspective

Products & Services

Upcoming Services:

- Debit & Credit Card Activation.

- Cheque book requisition.

- Credit Card e-commerce Open/ Block.

- Refund request of cards dispute amount in ATM & POS.

Compliance

The process of Internal Control is affected by the Board of Directors of the Bank through

Senior Strengthened its ICC Division with efficient and skilled manpower. The SEVP by

following guidelines provided by Bangladesh Bank will formulate an action plan and

implement it accordingly in the Internal Control and Compliance Division. It will ensure sound

internal control functions of the bank.

Materials

As per our IT road map, we have ensured enhanced network security of the Bank’s technology

environment. We have procured and installed world class network equipment (Firewall and

Router) to ensure security, confidentiality and availability along with integrity of data across

the Bank for achieving our vision, mission and objective.

Energy

Bank has upgraded the server infrastructure with game-changing technology called virtual

server using VMware solutions. This virtual environment technology ensures go green by

saving significant energy consumption, less foot print at data center, faster server provisioning

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and increased uptime. It uplifted our IT system to a next level of excellence with higher

efficiency and capabilities.

Dutch Bangla bank limited

SOCIAL PROSPECTIVE:

Contribution of DBBL in in different sectors in 2016:

HEALTH 7%

EDUCATION 72%

SOCIAL DEVELOPMENT 8%

SOCIAL AWARENESS 1%

DISASTER MANAGEMENT 11%

MISCELLANEOUS 1%

Dutch-Bangla Bank Donated Tk. 75 lac to the Prime Minister’s Relief Fund for flood

victims of the country. The flood displaced thousands of people from their homes and

caused severe damage to crops across the country.

Honorable Prime Minister Sheikh Hasina received the payment order of Tk. 75 lac from

Mr. M. Sahabuddin Ahmed, Founder of Dutch Bangla Bank & Chairman of Dutch-

Bangla Bank Foundation at a ceremony held at Gono Bhaban, Sher-e-Bangla Nagar, and

Dhaka.

Dutch-Bangla Bank Donated Tk. 2 crore to the Prime Minister’s Relief Fund for helping

the distressed people of the country. Honorable Prime Minister Sheikh Hasina received

the payment order of Tk. 2 crore from Mr. M. Sahabuddin Ahmed, Founder of Dutch

Bangla Bank & Chairman of Dutch-Bangla Bank Foundation at a ceremony held at Gono

Bhaban, Sher-e-Bangla Nagar, and Dhaka.

Dutch-Bangla Bank donated 1,00,000 pieces of blankets in December 08, 2016 at Prime

Minister’s Office, Tejgaon, Dhaka for distribution among the cold hit people of the

country.

Every year DBBL awards new scholarships for the meritorious students in need of

financial aid.

DBBL has been providing financial support for last 04(four) consecutive years at the rate

of Tk.2,500,000/- in 2013, Tk.2,500,000/- in 2014, Tk.3,130,000/- in 2015 and

Tk.3,500,000/- in 2016 for organizing Bangladesh Physics Olympiad along with

participation in the International Physics Olympiad (IPhO). The 6th Physics Olympiad

was held in 2016 in 12 regions where 10,000 students participated in the program. It is a

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great success that a lot of students of Bangladesh have been attracted in Physics and

Science through arranging Bangladesh Physics Olympiad.

DBBL has been providing financial support for organizing prestigious Ganit Utsab. In

2016, DBBL provided Tk.7, 500,000/- (Taka seven million five hundred thousand) only

for arranging this program.

Donation to Narayanganj Bar Academy at Khanpur, Narayanganj for constructing its

school building.

Donation to Kabi Nazrul High School, Bimail, Singair, Manikgonj for meeting up the

cost of constructing its academic building.

Donation to EKMATTRA for establishing an academy for the underprivileged children.

Donation to Faridpur Diabetic Association.

Donation to SHEBA Health Center.

In the year 2016 a total amount of Tk. 3,520,000/- was made as financial assistance to

different helpless persons to meet the cost of their treatment.

ENVIRONMENTAL PROSPECTIVE:

DBBL is committed to eco-friendly business environment and green banking.

Green Banking

DBBL has outlined a detail policy guideline for implementing Green Banking activities under a

comprehensive Green Banking Policy in a formal and structured manner in line with global

norms so as to protect environmental degradation and ensure sustainable banking practices.

DBBL believes that Green Banks or environmentally responsible banks do not only improve

their own standards but also affect socially responsible behavior of other businesses.

DBBL introduced a guideline demanding assessment of environmental and social impacts of the

projects to ensure that operations of the projects would be eco-friendly.

DBBL, since its inception, has been maintaining leading position in Bangladesh to provide IT

based banking services to its valued customers. DBBL provides online banking through its 165

Branches and a number of Agents, ATM/Fast Track, Mobile Banking viz. ‘Rocket’, Internet

Banking, SMS Banking, Debit Card, Credit Card, Virtual card, E-payment and so on. Besides,

DBBL has completed its process of full Centralization as per CRM Guideline of Bangladesh

Bank.

Biodiversity

DBBL complies with environmental standard while financing industrial projects. Projects with

likely adverse impact on environment are strongly discouraged by DBBL. They are trying to

incorporate sound environmental management process in business operations of projects

financed by us that can ensure healthy and sustainable environment for our future generations.

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DBBL introduced a guideline demanding assessment of environmental and social impacts of the

projects to ensure that operations of the projects would be eco-friendly.

Products and Services

Dutch Bangla Bank Ltd launched several financial products and services since its inception.

Among them are Monthly Income scheme, Monthly Savings Scheme, Super Savings Scheme,

Education Savings Scheme, Multiples Savings Scheme, Hajj Deposit Smart Saver Scheme. All

of these have received wide acceptance among the people.

DBBL is sponsoring social awareness programs for protecting the environment. Environmental

degradation and depletion of natural resources are matters of great concern in Bangladesh like

anywhere in the world. Environmental degradation is taking place due to poverty, over

population and lack of awareness about the environment. It is manifested by deforestation,

destruction of wetlands, depletion of soil nutrients etc.

Natural calamities like floods, cyclones and tidal bores also result in severe socio-economic and

environmental damage. DBBL has been continuously creating social awareness to protect the

environment that is essential for present and future generations. With that end in view, DBBL is

regularly advertising in print and electronic media to develop an eco-friendly society for

sustainable and healthy human life.

Economical prospective:

Particulars

2016 2015 Growth

(%)

2014 2013 2012

Result of operation (for the

year

Total revenue

Operating profit

Profit before taxation

Profit after taxation

21,613.3

5,521.8

3,234.0

1,762.6

21,849.0

6,433.9

6,267.3

3,020.3

-1.1%

-14.2%

-48.4%

-41.6%

20,741.8

5,324.4

4,518.8

2,206.6

20,050.6

4,583.6

3,547.0

2,000.8

18,213.1

5,205.6

4,817.1

2,314.1

Financial position (at year

end)

Total assets

Total risk-weighted assets

Total loans and advances

Total deposits

Total import business

Total export business

Total shareholders’ fund

Total capital

Market capitalization

276,844.4

162,165.3

173,397.8

207,234.0

134,768.1

134,166.5

17,660.2

21,249.4

23,340.0

244,057.6

154,548.6

152,270.0

186,765.0

135,047.1

129,954.5

16,754.3

21,137.6

21,520.0

13.4%

4.9%

13.9%

11.0%

-0.2%

3.2%

5.4%

0.5%

8.5%

215,993.5

130,709.5

124,423.0

166,762.3

123,391.9

117,777.3

14,517.4

18,077.9

21,160.0

185,537.4

112,770.7

106,422.8

145,230.1

108,259.3

118,045.2

12,641.7

15,403.4

20,940.0

155,918.6

102,518.8

91,648.9

125,433.1

104,306.1

108,878.6

10,854.5

12,284.0

22,850.0

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Particulars 2016 2015 Deviation 2014 2013 2012

Earnings per share

Dividend per share

Cash

Bonus

Net asset value (NAV) per

share

Closing Market price per

share

8.8

3.0

-

88.3

116.7

15.1

4.0

-

83.8

107.6

(6.3)

(1.0)

-

4.5

9.1

11.0

4.0

-

72.6

105.8

10.0

4.0

-

63.2

104.7

11.6

4.0

-

54.3

114.3

Financial ratios (In

Percentage)

Loan deposit ratio

Return on average total

assets

Return on average risk-

weighted assets

Return on average

shareholders’ fund

Ratio of non-performing

loan to total loan

Capital to risk-weighted

asset ratio (Basel III)

Cost-income ratio

83.7%

0.7%

1.1%

10.2%

5.2%

13.1%

65.3%

81.5%

1.3%

2.1%

19.3%

3.7%

13.7%

58.8%

2.1%

-0.6%

-1.0%

-9.1%

1.5%

-0.6%

6.6%

74.6%

1.1%

1.8%

16.2%

4.4%

13.8%

61.6%

73.3%

1.2%

1.9%

17.0%

3.9%

13.7%

63.9%

73.1%

1.7%

2.4%

23.4%

3.0%

12.0%

53.9%

From this information of 2016- total revenue earned 21,613.3m taka that is less than the previous

year. After taxation, profit came out with 1,762.6m taka. That also less than the previous year.

Total asset is 276,844.4m taka. Total capital 21,249.4m taka. Shareholders fund is increasing this

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year with 17,660.2m taka. So, economic performance is pretty much better considering with the

previous years.

BRAC BANK LIMITED



2016 (Balance sheet)

Total assets 268,324,018,065.00

Total liabilities 244,584,117,252.00

Shareholders' equity 22,264,106,438.00

Total liabilities and shareholders' equity

268,324,018,065.00

Book Value Per Share 31.34

Total assets 268,324,018,065.00

2016 (Income statement)

Net interest income 11,720,902,634.00

Total operating expenses 11,585,059,352.00

Total operating income 21,436,540,744.00

Profit before provision against loans and advances

9,851,481,392.00

Total provision 2,802,279,405.00

Profit before tax 7,049,201,987.00

Net profit after tax 4,062,139,715.00

Audited EPS 5.72

Cash Flow (2016)

Net cash from operating activities

9,767,257,632.00

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Net cash used in investing

activities (4,039,511,575.00)

Net Cash used in financing activities

281,341,044.00

Net increase/(decrease) in

cash and cash equivalents 6,009,087,101.00

Cash & Cash Equivalents at beginning of the year

41,019,700,403.00

Cash and cash equivalents at end of the year

46,977,708,909.00

Indirect economic aspects

bKash: bKash Limited, it is a subsidiary of BRAC Bank, started as a joint venture between

BRAC Bank Limited, Bangladesh and Money in Motion LLC, USA. In April 2013, International

Finance Corporation (IFC), a member of the World Bank Group, became an equity partner and

in April 2014, Bill & Melinda Gates Foundation became the investor of the company. The

ultimate objective of bKash is to ensure access to a broader range of financial services for the

people of Bangladesh. It has a special focus to serve the low-income masses of the country to

achieve broader financial inclusion by providing services that are convenient, affordable and

reliable.

More than 70% of the population of Bangladesh lives in rural areas where access to formal

financial services is difficult. Yet these are the people who are in most need of such services,

either for receiving funds from loved ones in distant locations, or to access financial tools to

improve their economic condition. Less than 15% of Bangladeshis are connected to the formal

banking system whereas over 68% have mobile phones. These phones are not merely devices for

talking, but can be used for more useful and sophisticated processing tasks. bKash was conceived

primarily to utilize these mobile devices and the omnipresent telecom networks to extend

financial services in a secure manner to the under-served remote population of Bangladesh.

Market presence

BRAC Bank Limited introduced its journey in November 2015 with new leadership and

enthusiasm of its employees. The ease of processes, talented recruits, enhanced employee

benefits and training to the employees have resulted in a weighty business growth and improved

customer services. The bank has reformed its branch banking model with the starting of

Corporate Branches to provide services to the big corporate customers. The bank has also give

afford on the emerging businesses and middle market customers to enhance big-ticket business

loans outside Dhaka and Chittagong. The bank has opened 10 branches across the country. With

181 Branches, 469 ATMs, 81 CDMs, 448 SME Unit Offices and 229 remittance delivery points,

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the bank has got the basic foundation in place for future growth. With its wide connection and

variety with the subsidiary operations like bKash, BRAC Bank has emerged the basic foundation

ready to be the best bank of the country in terms of quality of service, transparency, compliance,

good governance, ethics, etc. In 2016, the bank built the business growth dictation to shift resent

position to the next level. The flight is on the tarmac and is about to take off and spread its wings

to reach greater heights. The potential is unlimited. The journey to be the best bank has just

begun.

Environmental Perspective:

Solarizing SME Unit Offices

BRAC Bank continues to expand its solar power capacity as it has brought new SME Offices

under the renewable energy as part of its commitment to environment. The bank has completed

installation of solar panels in 149 SME Unit Offices as of in 2013. The bank is committed to

bring all 400 SME Unit Offices under solar energy.

Green Banking: Green Banking considers all social and ecological factors with the aim of

protecting the environment and conserving natural resources. BRAC Bank, as an active member

of the financial sector of Bangladesh, has a responsibility to safeguard the environment. BRAC

Bank plays a pivotal role in conserving natural resources; it took several initiatives, such as e-

statements, online banking, online bill payments, e-business, and SMS banking, to encourage

green banking for customers with satisfactory service levels.

BRAC Bank ltd integrates environmental and social obligation into all its business activities with

the belief that success is not only measured by financial results. The Bank has a strong stake in

the society through investments and projects which take its banking role one step further. BRAC

Bank supports its clients to be cautious about environmental issues. Serving the society as part of

bank Environmental and Social obligation by giving stipends to poor students, distributing warm

clothes to winter-hit people and contributing to the different relief fund. BBL is constantly

working towards decreasing consumption of energy (especially electricity, water and gas) at its

branches, removal of use of hazardous substances from its practices and reducing waste

generation. BBL is moving forward and thinking about implementing it more through the

branches, Unit office and also Head office. We contributed in different programs with the desire

to generate more social impact through our activities. It enables us to more effectively steer the

building of expertise and to help people in a more systematic way. BBL focus is on sports, arts

and culture, education, and entrepreneurship and on identifying the links between them. To

continue these activities every year, the Bank keeps aside a substantial amount of money as a

part of Corporate Social Responsibility (CSR) for development of the society. By supporting

these activities, we not only contribute to a sustainable society but also help the long-term

sustainability of our business. Bangladesh Bank has taken steps to inspire green banking in

Bangladesh through the issuance of guidelines on green banking and Environmental Risk

Management (ERM). It is always inspiring banks in lessening paper communications and fitting

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solar power system in branches and Unit office and giving refinance to the solar energy, bio-gas

and effluent treatment plant (ETP) sectors at eased interest rates. BBL has always been

committed to the environment and also been active in social activities throughout the year 2016,

and will remain to do so in the future.

Corporate social responsibility: Corporate social responsibility (CSR) is inlaid in the value

system of BRAC Bank Limited. For BRAC Bank, being committed to CSR means giving

statement that the bank is ethically committed towards the society of this country in which it

operates. The establishment of BRAC Bank’s CSR strategy is a crucial component that reflects

the intention for the sustainable development of our society and our stakeholders which means

having policies and procedures in place that integrate social, environmental, ethical, human

rights or consumer concerns into business operations and core strategy – all in close

collaboration with stakeholders. For BRAC Bank, the overall aim for CSR activities is to achieve

a positive impact on society as a whole, while maximizing the creation of shared value for the

owners of the business, its employees, shareholders and stakeholders. Bangladesh Bank CSR

Guideline is the guiding principal in designing our CSR roadmap. BRAC Bank prefers on long-

term programs rather than the short-term ones that have sustainable and lasting impact on the

people and society of the country. At BRAC Bank, employees work with a greater mission. They

are motivated to contribute to the bank’s social initiatives like annual fund raiser marathon,

warm clothes distribution and blood donation. Employees’ passionate involvement in CSR adds

new dimensions to the bank’s CSR portfolio.

Product and services

Customer Service Banking Products of BRAC Bank Limited

BRAC Bank Limited, one of the latest commercial banks started its journey on July 04, 2001. It

is a group of BRAC (Bangladesh Rural Advancement Committee), one of the world’s largest

non-governmental development organizations founded by Fazle Hasan Abed in 1972. It has been

the fastest growing Bank in 2004 and 2005. The Bank operates under a “double bottom line”

agenda where profit and social responsibility go hand in hand as it strives towards a poverty-free,

enlightened Bangladesh.

BRAC Bank Limited, with institutional shareholdings by BRAC, International Finance

Corporation (IFC) and Shore Cap International, has been the fastest growing Bank in Bangladesh

for the last three consecutive years. In the recent past the bank has gone public with price of

shares reaching impressive heights, further showing promising future.

BRAC Bank, a fully operational Commercial Bank, focuses on pursuing unexplored market

niches in the Small and Medium Enterprise Business, which hitherto has remained largely

untapped within the country. In the last five years of operation, the Bank has disbursed over BDT

2200 crore in loans to nearly 50,000 small and medium entrepreneurs in 2007. And this year

Bank’s disbursement plan is BDT 4100 crore. The management of the Bank believes that this

sector of the economy can contribute the most to the rapid generation of employment in

Bangladesh. Since inception in July 2001, the Bank’s footprint has grown to 36 branches, more

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than 400 SME unit offices and 38 ATM sites across the country, and the customer base has

expanded to 200,000 deposits and 45,000 advance accounts through 2006.

In 2005, BRAC Bank had a $178 million portfolio consisting of around 21,000 loans with an

average loan size of $8,000. It has around 400 regionally-placed loan processing units offering

services in the heart of rural and urban communities and employs over 700 business loan officers

– around 60% of total staff.

BRAC Bank is one of country’s fastest growing banks. With 155 Branches, SME Service

Centers & SME/Krishi Branches, 14 Apon Shomoy, 322 ATM Booths, 31CDMs, 398 SME Unit

Offices and more than 7,695 (as on May 2014) human resources, BRAC Bank’s operation now

cuts across all segments and services in financial industry. With more than 1.3 Million

Customers, the bank has already proved to be the largest SME financier in just 12 years of its

operation in Bangladesh and continues to broaden its horizon into Retail, Corporate, Foreign

Remittance and other arenas of banking. In the year: 2010, BRAC Bank has been recognized as

Asia‟s most Sustainable Bank in Emerging Markets by the Financial Times and IFC.

Recently BRAC Bank has achieved the International award for “Excellence in Retail Financial

Services”.

BRAC Bank has also been recognized as “The Best Managed Bank” in Bangladesh by The

Asian Banker. The Asian Banker Leadership Achievement Award is widely acknowledged by

the financial services industry as the highest possible accolade available to professionals in the

industry as recognized in the Asia Pacific and Gulf regions today. Our MD & CEO of BRAC

Bank Limited, Mr. Syed Mahbubur Rahman became the winner of The Asian Banker CEO

Leadership Achievement Award for Bangladesh for achievement in the period 2011-2013.

BRAC bank Limited, with institutional shareholding by BRAC, International Finance

Corporation (IFC) and ShoreCap Exchange, has been the fastest growing bank for last several

years.

Sustainability

Dimension

Targeted Key

Stakeholders

Sustainable Business

Objectives

How BRAC bank

addresses this

Economic Shareholders Wealth maximization

by declaring sound

returns annually

(1) Being focused,

planning and

identifying

opportunities

(2) Continuing to

uphold sound

governance

practices

(3) Managing risk

effectively

(4) Reinforcing

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internal control

and

compliance

Customers (1) Provide quality

product/ service

meeting their

absolute needs

(2) Managing the

operations carefully

and with

responsibility so as

to protect customer

interest especially of

depositors

(1) Reaching out to

customers’ door steps

by opening more

branches and SME

centers ●

(2) Molding existing

branches/ unit offices to

cater to diversified

customer requirements

(3) Continuously

innovating new

products and

operational process for

the betterment of

customers

Supplier/Service

providers

Adhere to proper

procurement

regulations while

maintaining a good

business relationship

with the service

providers

Following internal

procurement policy and

upgrading the policy

regularly to ensure

strong control and fair

treatment to suppliers

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Social Regulators Ensure compliance

with all regulatory

guidelines and

directives

● Following processes,

practices and controls to

ensure compliance with

applicable rules and

regulations imposed by

local and international

laws and regulations.

Employees (1)Continuously

encouraging

employees and

working towards

creating a healthy,

ethical and

supportive work

environment

(2) Nurturing human

capital

Engaging employees in

activities and sports

other than business as

usual for example Dour

arranged by BRAC

bank

Local Communities (1) ● Adding

value to the

society

(2) Conducting

business

without

causing

disruptions

in the society

Adding value to the

society by being a good,

responsible and

transparent corporate

citizen

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Environmental Environmentally

interested groups/

non-government

organizations

Conducting business

without harming the

environment

(1) implementing green

banking practices and

ensuring compliance

through Green reporting

to Bangladesh bank

(2) Giving priority on

energy consumptions to

reduce wastage

Stakeholders Engaged Engagement Process Key Issues raised by

Stakeholders

Regulators

(1) One-on-one

meetings

(2) All local

regulations

(3) Circular issued by

Bangladesh Bank on

Green banking and

CSR

(1) Relationship

building

(2) Offering support &

Compliance

Management

Discussions (1) Corporate

governance, ethics and

compliance

(2) Anti-corruption

measures implemented

by the organizations

(3) Superior customer

experience through

continuous

improvement

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Employees Discussions (1) Transport facilities

(2) Career growth and

development

opportunities

Eastern bank limited

Social prospective:

The world is changing at an ever-increasing pace. This change is putting pressure on resources,

and success in the labor market is also increasingly dependent on knowledge and skills. To cope

up with the ever-transforming landscape of business and finance, new thinking and new business

models are needed to overcome barriers to prosperity. As a corporate citizen, Eastern Bank has

been working for a better future since 1992 to support the drivers of prosperity for individuals,

communities, and economies. We believe that our responsibility extends beyond our core

business to the society in which we operate. For us investing in today is building for tomorrow.

Our future is our society. Therefore, investing in the society in which we operate in is basically

investing in our own future.

EDUCATION FOR SOCIAL DEVELOPMENT

The UN describes education as key to social and economic development, and has put educational

progress at the center of its Sustainable Development Goals (SDGs). In emerging economies,

access to education has the potential to raise those at the bottom of the economic pyramid out of

poverty. We at EBL focus on tertiary level of education because we believe that it is where youth

are prepared for entering the job market. For the economic development our society needs

skilled workforce and people who embrace critical thinking. Education is also crucial to social

cohesion too, because it enables people from a disadvantaged background to earn an income that

can provide a better quality of life and inspire future generations. As a responsive corporate

citizen, we have anchored our CSR initiatives on education. Our initiative is based on two

pillars: strengthening youth confidence by raising aspirations and providing pathways to

education and employment opportunities. To reach out to meritorious and disadvantaged students

of the University of Dhaka, we began a fruitful partnership with Dhaka University Alumni

Association (DUAA) in 2007. We are offering a minimum of four scholarships to all 74

departments of University of Dhaka helping the meritorious but disadvantaged young people to

pursue higher education and help them grow as skilled workforce. In 2016, we more than

doubled the amount to BDT 4.5 million, but decided to provide the scholarship to only 150

students to have a greater impact on their lives. The actual event took place on 26 January, 2017.

The scholarship presentation was held at the Senate Bhaban auditorium of the University of

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Dhaka attended by Finance Minister Abul Maal Abdul Muhith as chief guest and Professor

AAMS Arefin Siddique, Vice-Chancellor of University of Dhaka as special guest. Deputy

Governor of Bangladesh Bank SK Sur Chowdhury was present as guest speaker of the program.

They believe that every small ‘GREEN’ step taken today would go a long way in building a

greener future. As an environment responsive bank we initiated Go Green campaign in our Bank.

After reducing the use of electricity and paper at the office, EBL is now gearing up for carbon

trading to show its commitment to environment-friendly funding. EBL is the first bank to claim

refinance from the central bank for carbon credits. Some of our branches and ATM’s of the bank

are now run on solar power. The Bank also ensures that customers having production facilities

susceptible to damage environment has due environmental clearance certificate from the

concerned ministry while granting or renewing credit facilities. EBL is the first bank in

Bangladesh to offer Sustainable Energy Finance loan product with assistance from the South

Asia Enterprise Development Facility (SEDF), managed by IFC in partnership with the UK

Department for International Development and the Norwegian Agency for Development

Cooperation to help companies implement energy-saving measures and boosting the

competitiveness of private enterprises

EMPOWERING WOMEN

It is now globally accepted that empowering women facilitates economic growth. We are a great

believer of women empowerment. We have special products for women entrepreneurs at special

discounted loan pricing to provide growth support. Women clients can avail EBL Mukti loan up

to BDT 25 Lac without any collateral, up-to BDT 50 lac with collateral. EBL not only provides

finance but also guides women clients on various business issues such as financial record

keeping/accounting, sales routing through bank account, Trade License, taxation, marketing,

insurance etc. As a part of CSR, we donated 10 computers among Women Entrepreneurs and 10

‘Duranta Angellena Ladies Bicycle’ for North Area Poor School girls in 2016.

SUSTAINIBILITY REPORT

EBL’s sustainability ethos is one that is deeply embedded in the overall business strategy and

therefore intrinsic to the way in which the Bank conducts its business. Sustainability is at the

very core of the Bank’s corporate strategy. By integrating social and environmental

responsibility into core business processes and stakeholder management, the Bank recognizes its

ability to achieve the ultimate goal of creating both social and corporate value. We are

committed to serve all strata of society and through careful customer segmentation that provide

financial access and services across the continuum of socio-demographic groups. We always

believe that growth should be both inclusive and environmentally sound to reduce poverty and

build shared prosperity for our society to continue to meet up the needs of future generations. We

are working towards building a solid business model capable of generating stable revenue,

delighted customers, disciplined use of capital, rationalization of cost, prudent risk management,

and strength of brand to become sustainable corporate house. Being sustainable also means

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taking responsible decisions in context of ethical, social and environmental issues as well as long

term welfare of the community.

ENVIRONMENTAL ASPECT:

TO achieve long-term sustainable development, we must responsibly manage environmental and

social (e & s) risks. Environmental risk means the risk of causing pollution or destruction of the

natural environment (land, water, air, natural habitats, animals and plant species) through either

accidental or deliberate actions. In 2013, we introduced certain procedures and templates to

assess our e & s risk. We recognize that our primary impact on the natural environment is

through our relationship with our customers and the lending decisions we take. Therefore:

All our lending proposals are factored against e & s risks where appropriate.

All lending proposals are taking into account of local laws and regulations and

internationally acceptable environmental and social standards where these are more

stringent.

The risks associated with both environmental and social issues are being properly

recognized, evaluated and where appropriate mitigated.

The Businesses ensure that appropriate procedures are designed to meet these

policy requirements e.g. project finance proposals are assessed in accordance with the

IFC performance Standard.

EBL is committed to minimize the adverse impact of its operations on the environment. In 2016,

we reduced office paper use by 6 percent per full-time employee. We remain broadly on track to

meet our respective committed targets

ECONOMIC ASPECT:

Employee Remuneration:

BDT 2,821 million in staff costs …...EBL has 2,671 employees; 52% are with EBL for less

than 5 years, 31% are for 5 > 10 years, 7.57% are for 10 > 15 years and 9.21% are for over 15

years.

Loans granted (net):

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BDT 22,750.2 million in loans awarded at year-end………………The Bank has also financed a

total of BDT 22,750.2 million Small & Medium businesses. EBL is a market leader when it

comes to financing renewable energy projects

Shareholders:

BDT1,757 million in shareholder return…………. Distribute 20 % cash dividend and 5% stock

dividend.

Taxes withheld and paid:

BDT 2,225.99 million in taxes and other levies withheld and paid……........EBL contributes

both economically and socially to the countries in which it operates by paying all its withholding

indirect taxes from third parties

Social investment in the community:

BDT 31.94 million in social investment the community…………. BDT 31.94 million in

community support program. 14 MFI’s are linked with EBL to mobilize agricultural loan

FINANCIAL REVIEW

Apart from being one of the most regulated sectors, banks in Bangladesh are affected by a range

of factors: regulations, overall macro-economic condition, monetary policy stance of central

bank, business environment, legal framework etc. Political as well as macro-economic stability

helped the country in achieving 7% plus GDP growth for the first time in fiscal year (FY) 2016.

Industry played the primary role followed by the service sector to contribute higher growth. Low

petroleum prices in the global market helped inflation rates to stay low since Bangladesh spends

a significant amount on petroleum products. Export earnings increased at a higher rate than

imports; in other words, export-GDP ratio increased but import-GDP ratio declined in FY2016.

Key Financial highlights

Indicators 2016 2015 Growth

FX products sold to corporate customers USD 568.52

million

USD 431.15

million

↑31.86%

Total Exchange gain BDT 624.88

million

BDT 850.63

million

↓26.53%

Gain from govt. securities (Net off trading and

revaluation loss)

BDT 812.61

Million

BDT 577.85

million

↑40.62%

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Higher growth in RMG export also contributed to this. Despite visible signs of growth and

improvement in macro economy, the banking sector continued to display its weaknesses.

Lukewarm private sector credit demand despite single digit lending rate, rising NPL, falling

profitability, stricter regulations on ALM practices, and certain governance issues continue to

impact overall health of the banking industry. Government borrowing through savings

certificates at a much higher rate is also crowding out banks’ opportunity to invest in treasury

securities in absence of vibrant credit demand. While the banking sector is struggling with many

odds, new challenges continue to appear in new forms. Cyber-crime is one such element that

emerged as a new threat for the banks in Bangladesh in 2016. We continued to transform

challenges into opportunities and grew sustainably. We are the first bank in the country to

achieve a long-term rating Ba3 by Moody’s, one of the top rating agencies of the world. From

the financial point of view, EBL made the highest profit after tax so far (BDT 2,656 million with

20% growth) in 2016. Details are explained below:

OPERATING INCOME (+ 16%)

Our core banking results showed a healthy sign of turnaround in 2016. Despite negative growth

in investment income and Commission, exchange and brokerage income (both by 7%), an

impressive growth in net interest income or NII (56%) resulted a double digit operating income

growth (+16%). Share of NII in total operating income also increased from 36% in 2015 to 48%

in 2016. Operating income mix for 2016 and 2015 is compared below:

OPERATING INCOME MIX (%) 2016

52% 48%

NET INTEREST INCOME 48%

NON-INTEREST INCOME 52%

INTEREST INCOME (+2%)

Bank’s interest income, mostly from loans, increased by 2% (BDT 207 million) mainly for

following reasons:

of 36

Although loans and advances increased by 17% to BDT 152,084 million at year-

end 2016, growth was slower during first half (H1) of 2016 but had a positive turnaround

in the second half (H2) pulling down average loan balances.

FCY loan which is mostly low yielding and occupies 15% of total loan (BDT

22,564 million) saw a significant growth (27%) during the year.

Weighted average yield on loans decreased to 9.98% in December 2016 as

compared to 11.29% in December 2015 mainly due to stiff competition.

INTEREST EXPENSE ( -18%)

Bank’s interest expense, mostly on deposits and borrowing, decreased by 18%

(BDT 1,777 million) mainly for following reasons

Although deposit increased by 10% to BDT 140,284 million at year-end

2016, overall deposit growth was negative during H1 of 2016 and positive but

slower in H2, 2016 pulling down average deposit balances heavily.

Greater mobilization of low cost deposit (current and savings deposit

increased by 15% to BDT 55,086 million in 2016) and a gradual rate cut by

ALCO during H1, 2016. As a result, weighted average cost of deposit reached

4.87% in December 2016 which was 6.12% same point previous year.

SOUTHEAST BANK LIMITED



From the annual report of 2016- total revenue earned 5,290,597,989.00 taka that is greater than

the previous year. After taxation, profit came out with 2,435,073,598.00 taka. That also great

than the previous year. Total asset is 291,798,010,079.00 taka. Total capital 9,169,501,760.00

taka. Shareholders fund is increasing this year with 26,523,558,664.00 taka. So, economic

performance is pretty much better considering with the previous years.

Market Presence

Market value added statement shows the difference between the market value of the bank and the

capital contributed by shareholders i.e. book value of equity. During the year 2016, total market

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value of the bank was Tk. 15,774.55 million and total book value of equity is Tk. 19,387.72

million i.e. addition of market value was Tk. (3,615.00) million.

Indirect Economic Aspects

Economic growth is getting high year by year. The income is much sound but comparing with

other years it is not that much well profitable. The rate of female labor force participation are the

other strategies bound to yield good growth dividend over the medium term.

Procurements Practices

To conduct foreign trade of a country, bank plays an important role; usually this duty is played

by commercial banks. As a commercial bank, Southeast Bank Limited (SEBL) also engaged in

the dealing of foreign trade in Bangladesh. Foreign trade operations play a significant role in the

overall business of SEBL in order to strengthen its position. SEBL has further consolidated its

relationship with the existing network of international correspondents.

Environmental Category:

Materials

Like other commercial banks South East Bank performs maximum traditional banking business

including introduction of a wide range of caving and credit products, retail banking, Mobile

Banking and other support of modern technology and professional management, and they also

emphasize its function in export and import trade handing and financing of export. They help to

provide information of capital and reduces in balance in the balance of payment in the country.

Energy

The Southeast bank –Financial Express-policy Research Institute Green Award Trust is going to

recognize individual’s and organization’s by introducing green awards for their significant

contribution towards making a difference in promoting environmentally sustainable

development.

Biodiversity

South East is a known global hotspot of biodiversity and endemism, yet the region is also one of

the best biodiversity. It is regional biodiversity and priority actions to protect South

East Biodiversity in the future is discussed.

Products and Services

They set their product and service by consideration of nature and needs of the customers and

process of updating their products and services. Their offering products can be viewed in the

website of www.southeast.com.

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Compliance

Southeast Bank Limited has registered with Internal Revenue Service (IRS), USA as a Foreign

Financial Institution (FFI) under IGA Model-II for the compliance of Foreign Account

Tax Compliance Act (FATCA). All accounts maintained with us are subject to FATCA due-

diligence for ensuring best compliance.

Supplier Environmental Assessment

Capital is the primary resource on any bank and there are four major suppliers of capital in the

industry. 1. Customer deposits. 2. Mortgages and loans. 3. mortgage-backed securities. 4. Loans

from other financial institutions. By utilizing these four major suppliers, the bank can be sure

that they have the necessary resources required to service their customers' borrowing needs while

maintaining enough capital to meet withdrawal expectations. The power of the suppliers is

largely based on the market, their power is often considered to fluctuate between medium to high

Social Perspective:

Labor Practice and Decent Work

Human resource are best asset in the bank. Accordingly, how human resource is recruited,

trained, developed & motivated has far reaching implication on long-term sustainable growth of

the Bank. Perspectives from the developing world the organization's work on labor standards by

reinvigorating international. There are many opponents of international labor standards that

south-east bank follow.

Society:

Southeast Bank Limited was established as a third-generation private sector bank of Bangladesh.

Till now it ... Southeast Bank presents common deposit accounts like Savings and Current for

individual customers. In addition, this bank is planning to build up a hospital and schools for low

income people of the society. In the year 2001 its authorized capital was BDT 500 million and in

2010 that grew up to BDT 10,000 million. The Bank’s paid up capital reached to BDT 6930

million from BDT 363 million in 2001.

Product Responsibility

Southeast Bank Limited is deeply committed to providing customers with banking service that is

simple to understand and delivered in a responsible manner by their people in accordance with

the highest standards of service and integrity.

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4. Findings By analyzing the integrated reporting of the banks economic, social, environmental, we find out

that IFIC bank have enough elements like environmental economic social etc. They play an

important role in working with other companies, government and institutions to address key

social and economic challenges. IFIC Bank undertook the following activities to address the

requirement of people for making important contributions to the society. EBL also keep their

reputation by doing good.

They believe that every small ‘GREEN’ step taken today would go a long way in building a

greener future. As an environment responsive bank, they initiated Go Green campaign in our

Bank. After reducing the use of electricity and paper at the office, EBL is now gearing up for

carbon trading to show its commitment to environment-friendly funding. EBL is the first bank to

claim refinance from the central bank for carbon credits. Some of our branches and ATM’s of

the bank are now run on solar power. The Bank also ensures that customers having production

facilities susceptible to damage environment has due environmental clearance certificate from

the concerned ministry while granting or renewing credit facilities. And South-East Bank

maximum traditional banking business including introduction of a wide range of Saving and

credit products, retail banking, Mobile Banking and other support of modern technology and

professional management, and they also emphasize its function in export and import trade

handing and financing of export. They set their product and service by consideration of nature

and needs of the customers and process of updating their products and services. In BRAC

BANK there has some valuable economic aspects like BKASH. There has also Green Banking

considers all social and ecological factors with the aim of protecting the environment and

conserving natural resources. BRAC Bank, as an active member of the financial sector of

Bangladesh, has a responsibility to safeguard the environment. And also, Dutch Bangla bank is

the only bank which pioneered Mobile Banking in Bangladesh. It was the first bank to offer

banking facilities through a wide range of mobile phones. Rocket is a Banking process without

bank branch which provides financial services to unbanked communities efficiently and at

affordable cost. To provide banking and financial services, such as cash-in, cash out, merchant

payment, utility payment, salary disbursement, foreign remittance, government allowance

disbursement, ATM money withdrawal through mobile technology devices, i.e. Mobile Phone, is

called Rocket.

5. Conclusion/recommendation

All the banks should increase skilled human resources to do its financial activities more

efficiently. So, that, many of the employees do not have to do extra work loads and works late

hours without any overtime. They should introduce their different type of products such as

deposit scheme, different type of loan facilities, to the customer so that they can identify this.

The Bank should introduce more innovative and modern customer services to better survive in

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the competition. The Bank should recruit experienced, efficient and knowledgeable workforce as

it offers attractive compensation package and good working environment. DBBL should

introduce more innovative modern product and services for their product line because customer

want more banking product and services such as- credit card service, smooth and fast internet

banking services, flexible banking time. However, integrating reporting in Bangladesh gives us

different knowledge the situation of different places, organization etc. so that we can identify

their inside and outside impact.