TRUST BANK LIMITED Un-Audited Financial Statements for the 1 st Quarter ended as on 31 March 2010

Transcription

1 TRUST BANK LIMITED Un-Audited Financial Statements for the 1 st Quarter ended as on 31 March 2010

2 TRUST BANK LIMITED Balance Sheet (Un-audited) As of 31 March Notes (Un-audited) (Audited) PROPERTY AND ASSETS Cash Cash in hand (including foreign currencies) 3 664,898, ,348,059 Balance with Bangladesh Bank and its agent bank(s) (including foreign currencies) 4 2,717,947,064 2,996,480,710 3,382,845,077 3,433,828,769 Balance with other banks and financial institutions In Bangladesh 5 1,695,130,174 3,931,914,972 Outside Bangladesh 6 240,103, ,568,464 1,935,233,667 4,086,483,436 Money at call and short notice 7 2,130,000,000 3,550,000,000 Investments: Government 8 7,744,427,159 8,032,947,669 Others 9 1,691,003, ,661,338 9,435,430,645 8,705,609,007 Loans and Advances/Islami Banking Investments Loans, Cash Credit, Overdrafts etc ,340,090,757 31,524,930,342 Bills purchased and discounted ,407,638 1,138,177,441 34,230,498,395 32,663,107,783 Fixed assets including premises, furniture and fixtures ,830, ,919,144 Other assets 13 1,114,450,572 1,385,700,468 Non-banking assets - - Total Assets: 52,639,288,772 54,206,648,607 LIABILITIES AND CAPITAL Liabilities: Borrowings from other banks, financial institutions and agents ,403, ,403,792 Deposits and other accounts: 15 Current / Al-wadeeah Current Accounts and other Accounts 5,449,978,866 4,856,810,829 Bills Payable 652,570, ,883,159 Savings Bank / Mudaraba Savings Deposits 4,862,360,010 4,230,046,723 Fixed Deposits / Mudaraba Term Deposits 35,785,600,031 38,774,898,962 Bearer Certificates of Deposit - - Other Deposits ,750,509,055 48,464,639,673 Other liabilities 16 1,696,929,767 1,833,739,086 Total Liabilities: 48,600,842,614 50,451,782,551 Capital/Shareholders' Equity Paid up Capital 17 1,848,005,200 1,848,005,200 Share Premium Account 182,001, ,001,600 Statutory Reserve 18 1,233,993,190 1,138,330,330 Other Reserve ,031, ,565,154 Retained Earnings ,414, ,963,772 Total Shareholders' Equity 4,038,446,158 3,754,866,056 Total Liabilities and Shareholders' Equity 52,639,288,772 54,206,648,607 Page -1

3 OFF-BALANCE SHEET ITEMS Contingent Liabilities: 21 Acceptances and endorsements 2,799,255,608 2,189,338,630 Letter of Guarantees 2,070,814,723 1,527,643,816 Irrevocable Letter of Credits 4,006,691,906 4,592,263,738 Bills for collection 1,786,100,137 1,331,102,185 10,662,862,374 9,640,348,369 Other Contingent Liabilities - - Total: 10,662,862,374 9,640,348,369 Other commitments: Documentary Credit and short term trade -related transactions Forward assets purchased and forward deposits placed Un-drawn note issuance and revolving facilities Un-drawn formal standby facilities, credit lines and other commitments Total: - - Total Off-Balance Sheet items including contingent liabilities: 10,662,862,374 9,640,348,369 Sd/- Sd/- Sd/- Khaled Mahbub Morshed Ishtiaque Ahmed Chowdhury M Shah Alam Sarwar Chief Financial Officer Deputy Managing Director Managing Director Page -2

4 TRUST BANK LIMITED Profit and Loss Account (Un-audited) For the period from January 1, 2010 to March 31, 2010 (First Quarter) Notes January to March 31, 2010 January to March 31, 2009 Interest income / Profit on Investment 22 1,094,173, ,726,567 Interest / Profit paid on deposits and borrowings etc ,877, ,728,563 Net interest income 260,295, ,998,004 Income from investments ,013, ,190,668 Commission, exchange and brokerage ,477,078 77,371,804 Other operating income ,204,735 55,642, ,695, ,205,217 Total operating income 737,991, ,203,221 Salaries and allowances ,669,140 96,545,711 Rent, taxes, insurance, electricity, etc ,437,982 22,536,712 Legal expenses 101, ,220 Postage, stamps, telecommunications, etc. 29 9,467,266 8,200,362 Stationery, printing, advertisement etc. 30 9,344,042 5,514,877 Managing Director's salary and benefits 2,310,000 1,950,000 Directors' fees ,400 70,000 Auditors' fee - - Charges on loan losses - - Depreciation and repair of bank's assets 32 27,531,603 20,483,557 Other expenses 33 39,521,769 27,052,390 Total operating expenses 253,589, ,797,829 Profit before provision 484,402, ,405,392 Provision for loans / Investments 34 (4,000,000) 34,026,000 Provision for Diminution in value of Investment 35 5,030,282 - Other provision 36 5,057,666 (6,526,479) 6,087,948 27,499,521 Total Profit before Taxes 478,314, ,905,871 Provision for Taxation Current tax 194,500, ,000,000 Deferred tax (3,299,397) 2,225, ,200, ,225,447 Net Profit after Taxation 287,113, ,680,424 Appropriations: Statutory Reserve (@ 20% on profit before taxes) 95,662,860 63,781,174 General reserve ,662,860 63,781,174 Retained surplus 191,450,839 77,899,250 Earning per share (EPS) Sd/- Sd/- Sd/- Khaled Mahbub Morshed Ishtiaque Ahmed Chowdhury M Shah Alam Sarwar Chief Financial Officer Deputy Managing Director Managing Director Page -3

5 TRUST BANK LIMITED Cash Flow Statements (Un-audited) For the period from January 1, 2010 to March 31, 2010 (First Quarter) January to March 31, 2010 January to March 31, 2009 A. Cash flow from operating activities Interest received in cash 1,052,221, ,638,220 Interest payments (747,210,522) (519,507,807) Dividend receipts 340, ,050 Fees and commission receipts in cash 104,217,215 78,991,081 Recoveries of loans previously written off - - Cash paid to employees (260,139,346) (132,812,883) Cash paid to suppliers (7,521,335) (7,848,155) Income Taxes paid (161,098,451) (102,802,424) Received from other operating activities (item-wise) 491,598, ,741,332 Payments for other operating activities (item-wise) (153,822,177) (55,999,829) Operating profit before changes in operating Assets and Liabilities 318,585, ,226,585 Increase/(Decrease) in operating assets & liabilities Statutory Deposits - - Net Investment in trading securities (1,018,342,148) 529,275 Loan & advance to other banks - - Loan & advance to customers (1,544,358,627) (227,126,735) Other assets (item-wise) 204,657,838 (258,631,790) Deposits from other banks 85,766,000 36,581,000 Deposits from customers (1,886,506,243) 2,147,742,398 Other liabilities account of customers - - Trading liabilities - - Other liabilities (item-wise) (10,977,027) (21,174,880) Net cash from operating activities (A) (3,851,174,714) 2,121,145,853 B. Cash flow from investing activities Proceeds from sale of securities - - Payments for purchase of government securities 285,455,113 (529,247,222) Purchase of property, plant & equipment (54,495,796) (25,401,093) Purchase of intangible assets (1,004,166) (4,431,572) Sale of property, plant & equipment 2,308,736 - Net cash from investing activities (B) 232,263,887 (559,079,887) C. Cash flow from financing activities Increase/(Decrease) in Borrowing: Call loan - (1,010,000,000) Re-purchase agreement (REPO) - - Other borrowings - 8,453,000 Share Capital A/c - - Share Premium A/c - - Net cash from financing activities (C ) - (1,001,547,000) D. Net increase in Cash and Cash Equivalent (A+B+C) (3,618,910,827) 560,518,966 E. Effects of exchange rate changes on cash and cash equivalents (2,854,434) (2,798,097) F. Opening Cash and Cash Equivalent 11,072,211,105 5,029,395,988 Cash and cash equivalents at end of period (D+E+F) 7,450,445,844 5,587,116,857 Page -4

6 TRUST BANK LIMITED Statement of changes in Equity (Un-audited) For the period January to March 31, 2010 (First Quarter) Particulars Paid up Capital Share Premium Account Statutory Reserve Other Reserve Retained Earnings Total Balance as at 01 January ,848,005, ,001,600 1,138,330, ,565, ,963,772 3,754,866,056 Changes in accounting policy Restated Balance Surplus/Deficit on revaluation of properties Surp lus/deficit on revaluation of investment (3,533,597) - (3,533,597) Currency transaction difference Net gain and losses not recognized in the income statement Net profit/(loss) for the period after tax ,113, ,113,699 Statutory reserve ,662,860 - (95,662,860) - Dividends (Bonus Share) Issue of Share Capital (Right Share) Income Tax Provision Balance as at 31 March ,848,005, ,001,600 1,233,993, ,031, ,414,611 4,038,446,158 Statement of changes in Equity (Un-audited) For the period January 1, 2009 to March 31, 2009 (First Quarter) Particulars Paid up Capital Share Premium Account Statutory Reserve Other Reserve Retained Earnings Total Balance as at 01 January ,540,004, ,002, ,525,946 74,287, ,833,118 3,119,652,987 Changes in accounting policy Restated Balance Surplus/Deficit on revaluation of properties Surplus/Deficit on revaluation of investment (56,862,212) - (56,862,212) Currency transaction difference Net gain and losses not recognized in the income statement Net profit/(loss) for the period after tax ,680, ,680,424 Statutory reserve ,781,174 - (63,781,174) - Dividends (Bonus Share) Issue of Share Capital (Right Share) Income Tax Provision - - Balance as at 31 March ,540,004, ,002, ,307,120 17,424, ,732,368 3,204,471,199 Page -5

7 TRUST BANK LIMITED Notes to the Financial Statements 1 STATUS OF THE BANK Trust Bank Limited is a scheduled commercial bank established under the Bank Companies Act, 1991 and incorporated as a Public Limited Company under the Companies Act, 1994 in Bangladesh on 17 September 1999 with the primary objective to carry on all kinds of banking business in and outside Bangladesh. The Bank had Forty Two (42) branches and Five (5) SME Service Centers are operating in Bangladesh as of 31 March The Bank had no overseas branches as of 31 March The bank is listed with Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited as a publicly traded company for its general class of shares. The registered office of the Bank is located at 36, Dilkusha Commercial Area, Dhaka Initially the bank has started its operation in the name of "The Trust Bank Limited" but on 12 November 2006 it was renamed as Trust Bank Limited by the Registrar of Joint Stock Companies. The new name of the bank was approved by Bangladesh Bank on 03 December Nature of business Trust Bank Limited offers full range of banking services that include deposit banking, loans & advances, export, import and financing national and international remittance facilities etc. 1.2 Merchant Banking Activities The Bank also carries out merchant banking activities under the license issued by the Securities & Exchange Commission (SEC), Dhaka, Bangladesh. The overall increase of activities of Merchant Banking Operations plays an important role in the improvement of capital market of the country and enhances earning capability of the Banks. Trust Bank Limited carries out Merchant Banking Operations under the license issued by the Securities and Exchange Commission (SEC), Bangladesh. Merchant Banking Division (MBD) is actively managed the portfolio of the customers by selling and buying of shares for them through different brokerage houses. It also allows margin loan facility to the customers against their equity for investment in the listed companies. MBD is also managing Bank s own portfolio through investing in listed shares for boosting up the profitability of the Bank and also enhancing shareholders value. We have a plan to form a wholly owned subsidiary company for running the Merchant Banking Activities very soon. 1.3 Islami Banking Activities Islamic Banking refers to a system of banking or banking activity that is consistent with Islamic law (Shariah) stated in the Holy Qur an and Sunnah of the Prophet Muhammad, pbuh. The most important feature of Shariah is the prohibition of Riba, the collection and payment of interest. Shariah also prohibits trading in financial risks which are gambling in nature and investing in Businesses that are considered unlawful, or haram in Islam (e.g. alcohol or pork or businesses that produce pornography). Islamic banking is a trade based operation while the conventional banking is lending based. All banking activities of Islamic banking stand & structured on the underlying contract between the bank and the client. All products developed under TIB is thoroughly reviewed and approved by the 4 (four) member Sharia council of the bank who ensures the sharia compliance of such product & calculation. Operations of TBL Islamic banking are booked at 5 TIB wings of TBL-Principal Branch, TBL-CDA Branch, TBL-Gulshan Branch, TBL-Dilkusha Branch, TBL- Sylhet Corporate Branch. All investment under TIB is made from the Islamic banking deposits. 1.4 Retail Banking Activities Consumer credit program is an important development scheme in the banking sector in most of the developing economics. Retail banking through its consumer finance products facilitates the consumers by enhancing their purchasing power which in terms contributes in creating demand in market. TBL retail banking has diversified products covering consumer durables to education. In addition to the financing sector TBL, RB U has also introduced different deposit products to encouraging savings behavior of the society. Page -6

8 Before allowing any facility to an individual, bank obtains some up to date documents like gas bill, electricity bill and telephone bill to evaluate the consumer repayment behavior, TIN certificate to focus individual income, Insurance coverage and registration of the vehicles to justify the genuineness of the ownership which assist a lot to earn sizable revenue for the government. It also edifies the mass people to be punctual and honest citizen of the land. 1.5 SME Financing Needless to say, SME is universally recognized as the thrust sector and driving force of the economy which has injected the appetite for bringing consistency in the banks credit portfolio by striking balance between SME and corporate lending. The issue of fostering SME growth in Bangladesh can in no way be ignored as these industries have huge prospects for creating large scale employment opportunities and potentialities of innumerable income generation especially in semi-urban and rural areas. As such, the Bank is moving forward to SME customer segment with market approach to meet the credit & considering the business potentials and return on investment. The business expansion and monitoring is carried out throughout its 42 nos. country wide branches and 5 SME service centers dedicated to full-fledged SME business. Trust Bank has launched different products and marketing these products matching with the customer need. Its especial emphasis is on Loan for shopkeepers, Loan for light engineering, Loan for power loom and handloom industries, Agri-business loan and Loan for Women Entrepreneurship. It is going for financing Bio-gas plant to meet the requirement of rural energy and ensure the supply of organic fertilizer in the farmland for the expansion of SME portfolio. In view of diversification of portfolio it is imperative to say that the substantial increase of SME lending would lead the bank to its positive growth. As a matter of fact Trust Bank Ltd. has undertaken a comprehensive and competitive strategy to have a meaningful contribution in this sector. 2 SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREP ARATION OF FINANCIAL STATEMENTS 2.1 Basis of preparation of the financial statements These financial statements have been prepared under the historical cost convention on a going concern basis in accordance with International Accounting Standards and International Financial Reporting Standards adopted by the Institute of Chartered Accountants of Bangladesh, Companies Act, 1994, the Securities and Exchange Rules 1987, Dhaka & Chittagong Stock Exchange's listing regulations and other laws and rules applicable in Bangladesh and in the format prescribed by Bangladesh Bank vide BRPD circular # 14 dated 25 June 2003 in accordance with the "First Schedule" (Sec-38) of the Bank Companies Act, Consolidation A separate set of records for consolidating the statements of affairs and income & expenditure statements of the branches are maintained at Head Office of the Bank in Dhaka based on which these financial statements have been prepared. 2.3 Use of estimates and judgments The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. 2.4 Foreign currencies Transactions in foreign currencies are translated into taka currency at the rates of exchange prevailing on the date of such transactions and resulting gains or losses are credited or charged to profit & loss account as per BAS-21" The Effects of Changes in Foreign Exchange Rates". Assets and liabilities as on 31 March 2010 in foreign currencies under regular accounts are converted into equivalent taka currency at the average rates prevailing at the Balance Sheet date. Page -7

9 2.5 Taxation Provision for taxation In compliance with BAS-12 " Income Taxes", provision for current income tax has been 42.50% on business income on dividend income, after considering some of the add backs to income and disallowances of expenditure as per Income Tax Ordinance 1984 and time to time amendment to issue different S.R.O and circular issued by the N.B.R Deferred taxation Deferred tax liabilities are the amount of income taxes payable in future periods in respect of taxable temporary differences. Deferred tax assets are the amount of income taxes recoverable in future periods in respect of deductible temporary differences. Deferred tax assets and liabilities are recognised for the future tax consequences of timing differences arising between the carrying values of assets, liabilities, income and expenditure and their respective tax bases. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantially enacted at the balance sheet date. The impact on the account of changes in the deferred tax assets and liabilities has also been recognised in the profit and loss account as per BAS-12 "Income Taxes". 2.6 Assets and basis of their valuation Cash and cash equivalents Cash and cash equivalents include notes and coins on hand, unrestricted balances held with Bangladesh Bank and highly liquid financial assets which are subject to insignificant risk of changes in their fair value, and are used by the Bank management for its short-term commitments Loans and advances / Investments Loans and advances are stated at gross amount. Provision and interest suspense against loans and advances are shown separately as liability. Interest income is accounted for on accrual basis until the loans and advances are defined as Special Mention Account (SMA) or classified accounts as per Bangladesh Bank guidelines. Interest on Special Mention Account and classified loans (other than bad/loss loans) are credited to interest suspense account instead of income account. Such interest kept in suspense account is reversed to income account only when respective loan accounts become regular and /or realized in cash. As per Bangladesh Bank directives, interest on loans and advances classified as bad/loss is not accounted for. A separate memorandum record is maintained for such interest on bad/loss loans Provision for loans And advances Provision for loans and advances is made on the basis of the quarter-end review by the management of the Bank and in line with the instructions contained in BCD Circular No. 34 dated 16 November 1989 and subsequently circulars issued vide BCD Circular No. 20 dated 27 December 1994, BCD Circular No. 12 dated 4 September 1995, BRPD Circular No. 16 dated 6 December 1998, BRPD Circular No. 9 dated 14 May 2001, BRPD Circular No. 2 dated 15 February 2005, BRPD Circular No. 9 dated 20 August 2005, BRPD Circular No. 17 dated 6 December 2005, BRPD Circular No.18 and 19 dated 20 December 2005, BRPD Circular No. 8 dated 8 February 2006, BRPD Circular No. 05 dated 05 June 2006 and BRPD Circular no. 05 dated 29 April 2008 issued by Bangladesh Bank. Provision rate are given below : Provision General provision on Rate a. Consumer Financing (House Financing) 2% b. Consumer Financing (Loans to Professional) 2% c. Consumer Financing ( Other than a & b) 5% d. Small and Medium Enterprise Financing 1% e. Short Term Agriculture & Micro Credit 5% f. All other Credit 1% g. Special Mention Account 5% Specific provision on a. Substandard Loans and Advances 20% b. Doubtful Loans and Advances 50% c. Bad/Loss Loans and Advances 100% Page -8

10 2.6.4 Provision for off balance sheet exposures General provision for off balance sheet exposures has been 1% on 1 st Quarter end balance of total off balance sheet exposures as per BRPD circular No. 8 and 10 dated August 07, 2007 and September 18, 2007 respectively issued by Bangladesh Bank. 2.7 Investments All investment securities are initially recognised at cost, being fair value of the consideration given, including acquisition charges associated with the investment. Premiums are amortised and discounts accredited, using the effective yield method and are taken to discount income. In accordance with BRPD Circular No. 15 dated 31 October 2005 issued by Bangladesh Bank, Government Securities purchased for maintaining Statutory Liquidity Reserve (SLR) i.e., Government Security - held to maturity (HTM) are revalued at their maturity yield at least once in a year and Government Securities - held for trading (HFT) are revalued at the market price at least once a week. Further to BRPD circular letter 15, 2005 the investments in government securities are strictly revalued as per instructions & guidelines given in DOS Circular letter no. 05 dated January 28, 2009 whereby Treasury Bills held for trading are also amortized at least once in every week and the gain in amortization received due to proceed to the date of maturity is taken in income. As the Treasury bonds held for trading receives coupon interest semiannually, income is taken into account in each month as accrual basis. 2.8 Fixed assets and depreciation Fixed assets are stated at cost less accumulated depreciation as per BAS-16 " Property, Plant and Equipment". Depreciation is charged at the following rates per annum using reducing balance method on all fixed assets other than motor vehicles and office equipment, which are depreciated on straight-line method and no depreciation on land is charged. Category of fixed assets Land Building Furniture & Fixtures Office Equipment Motor Vehicles Office Decoration Page -9 Rate Nil 5% p.a. 10% p.a. 20% p.a. 20% p.a. 12% p.a. Depreciation at the applicable rates is charged proportionately on additions made during the 1 st Quarter from the date of their acquisition and in case of sale up to the date of sale. Repairs and maintenance costs of fixed assets are charged to profit & loss account, when incurred. 2.9 Liabilities and Provisions 2.10 Revenue recognition i) Interest income/profit on TIB Investment In terms of the provisions of the BAS-18 "Revenue", the interest income is recognized on accrual basis. Interest on loans and advances ceases to be taken into income when such advances are classified. It is then kept in interest suspense in a memorandum account. Interest on classified advances is accounted for on a cash receipt basis. ii) iii) iv) Investment income/tib Investment Income Income on investments is recognized on accrual basis except from Government Securities which are recognized on the basis of BRPD Circular 15 Dated 31 October 2005 issued by Bangladesh Bank. Fees and commission income Fees and commission income arises on services provided by the Bank are recognized on a cash receipt basis. Commission charged to customers on letters of credit and letters of guarantee are credited to income at the time of effecting the transactions. Dividend income on shares Dividend income from shares is recognized during the period in which they are received as per section 19(7) of Income Tax Ordinance, 1984 and Finance Ordinance v) Interest paid and other expenses In terms of the provisions of the BAS - 1 "Presentation of Financial Statements" interest and other expenses are recognized on accrual basis.

11 2.11 Earning per share (EPS) Earning per Share (EPS) calculated in accordance with BAS-33: Earning per Share, which has been shown on the face of Profit & loss Account Cash flow statement Cash Flow Statement is prepared in accordance with BAS 7: Statements of Cash Flow and Bangladesh Bank BRPD Circular No. 14 dated 25 June 2003 issued by Bangladesh Bank General i) Figures have been rounded off to the nearest taka; ii) Prior period s figures shown for comparison purpose, have been rearranged, whenever necessary, to confirm to current period s presentation CASH Cash in hand In local currency 619,412, ,552,978 In foreign currencies 45,485,729 42,795, ,898, ,348,059 4 Balance with Bangladesh Bank and its agent bank(s) Balance with Bangladesh Bank In local currency 2,077,980,432 2,226,970,981 In foreign currencies 599,584, ,640,797 2,677,564,606 2,948,611,778 Balance with Sonali Bank in local currency (as agent of Bangladesh Bank) 40,382,458 47,868,932 2,717,947,064 2,996,480,710 5 BALANCE WITH OTHER BANKS AND FINANCIAL INSTITUTIONS In Bangladesh Current Deposits Sonali Bank Ltd. 20,297,756 18,848,591 Rupali Bank Ltd. 2,806,535 8,330,965 The City Bank Ltd. 3,590,417 3,777,496 Janata Bank Ltd. 10,334,455 8,474,284 Agrani Bank Ltd. 4,195,709 4,195,709 BRAC Bank Ltd. 4,533,623 8,616,782 Pubali Bank Ltd ,758,495 52,243,827 Short Term Deposits Sonali Bank Ltd. 77,997,182 14,388,102 AB Bank Ltd. 1,392,137 1,392,137 CITI Bank NA 19,642,533 17,267,032 Rupali Bank Ltd. 1,695,718 1,395,718 Janata Bank Ltd. 2,214, ,138 Prime Bank Ltd. 5,631,541 7,573,068 Standard Chartered Bank 1,059,904 1,350,839 Jamuna Bank Ltd. - - Dutch Bangla Bank Ltd. 7,146,094 20,632,902 Trust Bank Limited - - Bank Asia Limited 17,357,709 5,257,709 Standard Bank Limited 474, ,500 Al Arafah Islami Bank Limited 5,000, , ,611,679 70,665,645 Page -10

12 Fixed Deposits FDR with Banks-Local Currency AB Bank Ltd - - BRAC Bank Ltd ,000,000 Bank Asia - 400,000,000 Bank Alfalah Ltd - - Eastern Bank Ltd. - - EXIM Bank Ltd ,000,000 Jamuna Bank Ltd ,000,000 National Bank Ltd ,000,000 Pubali Bank Ltd ,000,000 The Premier Bank Ltd ,000,000 First Security Bank Ltd. - - National Bank of Pakistan - - UCBL - 100,000,000 United Commercial Bank Ltd. - - Standard Bank Ltd. - - Southeast Bank Ltd. - - FDR with Bank - Foreign Currency Commercial Bank of Ceylon 389,760, ,480,000 FDR with Investment and Leasing Co. - Local Currency Ahsania-Malayasia Hajj Inv. 50,000,000 50,000,000 Bangladesh Industrial Finance Co. Ltd. 100,000, ,000,000 Bay Leasing & Investment Ltd. 50,000, ,000,000 Delta-Brac Housing Finance Company Ltd. - - Fareast Finance & Investment Company Ltd. 30,000,000 30,000,000 GSP Finance Company (Bangladesh) Ltd. 100,000, ,000,000 International Leasing & Financial Services Ltd. 300,000, ,000,000 IPDC of Bangladesh Ltd. Islamic Finance & Investment Ltd. - - Lanka Bangla Finance Co. Ltd ,000,000 MIDAS Financing Ltd. - - Peoples Leasing & Financial Services Ltd. 90,000,000 90,000,000 Phoenix Leasing Company Ltd. 150,000,000 50,000,000 Premier Leasing & finance Ltd. 50,000,000 50,000,000 Prime Finance & Investment Ltd. 150,000, ,000,000 Union Capital Ltd. 50,000,000 50,000,000 Uttara Finance & Investment Ltd ,509,760,000 3,809,480,000 1,695,130,174 3,931,914,972 Page -11

13 6 BALANCE WITH OTHER BANKS AND FINANCIAL INSTITUTIONS Outside Bangladesh (Nostro Accounts) Current Account Citibank N.A., USA 22,128,012 19,291,732 Union De Banques, HKG 1,689,239 1,688,026 Mashreqbank psc, USA 6,048,040 11,281,376 Standard Chartered Bank, USA 4,146,795 2,387,651 HSBC Bank, USA 91,775,303 4,687,564 ICICI Bank Ltd., Hongkong 9,276,449 13,318,013 Wachovia Bank, NY USA 6,091,495 7,675,186 GBP Account Standard Chartered Bank, UK 7,710,223 15,532,170 Citibank N.A., UK 8,542,876 18,829,703 HSBC, PLC, UK 4,797,365 28,257,659 Japanese Yen Account Standard Chartered Bank, Japan 957, ,783 Wachovia Bank, NY USA 644, ,736 EURO Account HSBC, PLC, UK 1,745,140 1,251,004 Standard Chartered Bank, UK 11,691,354 1,029,220 ICICI Bank Ltd.,Mumbai, India 778, ,855 Citibank N.A., UK 6,935,145 2,684,799 ACUD Account Citibank N.A., Mumbai, India 5,141,006 4,445,098 ICICI Bank Ltd.,Mumbai, India 11,539, ,566 HSBC Bank, Pakistan 5,729,078 1,295,216 HSBC Bank, Mumbai, India 511, ,014 AB Bank, Mumbai, India 4,527,289 8,464,355 Mashreqbank, Mumbai, India 2,295,065 3,736,544 Standard Chartered Bank, Mumbai, India 5,861,990 4,398,274 CHF Account Habib Bank, Zurich 19,540, , ,103, ,568,464 1,935,233,667 4,086,483,436 7 MONEY AT CALL AND SHORT NOTICE Banking company AB Bank Ltd. 150,000, ,000,000 Bank Asia Ltd. 300,000, ,000,000 BASIC Bank Ltd. 100,000,000 Jamuna Bank Ltd. 250,000,000 National Bank Ltd. 200,000, ,000,000 NCC bank Ltd. 200,000,000 Premier Bank Ltd. 150,000, ,000,000 Page -12

14 The City Bank Ltd. 250,000,000 - Citi bank NA - 150,000,000 Dhaka Bank Ltd ,000,000 Dutch Bangla Bank Ltd ,000,000 IFIC Bank Ltd ,000,000 Janata Bank Ltd ,000,000 Mercantile Bank - 250,000,000 Mutual Trust Bank Ltd - 300,000,000 One Bank Ltd ,000,000 Non-banking financial institutions 1,600,000,000 2,770,000,000 Bay Leasing & Investment Ltd. 50,000, ,000,000 Bangladesh Industrial Finance Co. Ltd. 70,000,000 Delta Brac Housing 50,000,000 70,000,000 Fareast Finance 50,000,000 GSP Finance Company (Bangladesh) Ltd. 40,000,000 60,000,000 International Leasing & Financial Services Ltd. 50,000, ,000,000 Industrial & Infrastructural Development Finance Co. Ltd. - - Lanka BanglaFinance - 100,000,000 MIDAS Finance 30,000, ,000,000 Peoples Leasing & Financial Services Ltd. 80,000,000 50,000,000 Phoenix Leasing 40,000,000 Premier Leasing & finance Ltd. 50,000,000 50,000,000 Union Capital Ltd. 60,000,000 60,000, INVESTMENTS Government Securities Treasury Bills 530,000, ,000,000 2,130,000,000 3,550,000,000 Treasury Bills -HTM - - Treasury Bills-HFT 389,354, ,343,242 Treasury Bonds 389,354, ,343,242 Treasury Bond - HFT 7,142,705,527 7,142,705,527 Treasury Bond - HTM 160,000, ,000,000 Bangladesh Govt. Islamic Investment Bond - HTM 50,000,000 7,352,705,527 7,302,705,527 National Investment Bond - - Bangladesh Bank Bill - - Prize Bond 2,367,100 1,898,900 7,744,427,159 8,032,947,669 Page -13

15 9 Other Investment Preference Share - 1,000,000 Shares of BRAC Bank Tk. 100 each 100,000, ,000,000 Preference Share - 1,000,000 Shares of Khulna Power Company Tk. 100 each 100,000, ,000,000 Debentures/Bond 520,000,000 Ordinary Shares Quoted 968,003, ,661,338 Unquoted - 3 Shares of Tk. 1,000,000 each 3,000,000 3,000,000 1,691,003, ,661,338 9,435,430,645 8,705,609, LOANS AND ADVANCES/TIB INVESTMENT Conventional Loans Repair & Recon. of Dwelling House (RRDH) 567,939, ,293,207 Consumer Durable Scheme Loans (CDS) 4,867,333 5,138,785 Marriage Loans (ML) 40,894,425 42,672,900 Army Officers Housing Scheme Loan 469,989,000 - Car Loans (CL) 70,295,196 75,262,373 House Building Loans (HBL) 1,951,383,303 1,385,592,853 Term Loans 9,077,208,014 9,418,775,979 Loan under Retail Banking 1,524,370,768 1,491,839,546 Time Loan 2,000,209,374 1,762,527,544 Other Loans 340,375, ,793,471 PAD under Export Development Fund - - SME Loan - - Staff Loans 167,281, ,381,943 Loans against Credit Card 22,064,161 23,634,994 Loans against Trust Receipts (LTR) 5,453,705,293 5,141,631,263 Payment Against Documents (PAD) 362,279, ,719,263 Packing Credit (Loan agt. Packing Credit) 630,273 3,080,637 22,053,492,572 20,375,344,758 TIB Investment Murabaha 5,733,092 5,733,092 Bai-Muajjal 42,055,887 38,976,149 Hire Purchase under Shirkatul Melk 191,773, ,381,150 IHSAN Apartment Purchase Scheme 6,179,811 4,740,498 BARAKAT Home Construction Scheme 7,073,043 3,045,046 BARAKAT Car Scheme 13,823,357 13,730,223 HPSM-Real Eastate 32,417,918 32,417,918 Murabaha TR 32,723,477 13,905,442 Bai-Salam 10,278,534 3,914,200 Musharaka agt. IBP 342,058, ,843,718 Page -14

16 Cash Credit Cash Credit 692,570, ,539,793 Cash Collateral 165,214, ,941,798 Overdraft 857,785, ,481,591 Overdrafts 4,798,648,542 4,811,705,456 Secured Overdrafts 5,288,105,971 5,099,554,819 10,086,754,513 9,911,260,275 Total Loans, Cash Credits and Overdrafts 33,340,090,757 31,524,930, Bills Purchased and Discounted Under Conventional banking 851,752,478 1,119,658,374 Under Islami banking (Musharaka agt. IBP) 38,655,160 18,519, FIXED ASSETS INCLUDING PREMISES, FURNITURE AND FIXTURES 890,407,638 1,138,177,441 34,230,498,395 32,663,107,783 Cost Office Building 12,680,000 12,680,000 Furniture and fixtures 112,367, ,205,359 Office equipment 247,641, ,307,789 Motor vehicles 133,925, ,840,866 Office renovation 162,932, ,708,204 Leasehold Land 160, , ,708, ,902,687 Less: Accumulated depreciation 258,877, ,983,543 Page ,830, ,919, OTHER ASSETS i) Investment in shares of subsidiary companies (In Bangladesh and outside In Bangladesh - - Outside Bangladesh - - ii) Stationery, stamps, printing materials in stock etc.; 21,805,726 18,811,698 iii) Advance Rent and Advertisement 54,866,270 56,702,254 Advance Income Tax less Income Tax Provision - - Deferred Expenditure - - Advertisement/Business Develop. - - iv) Interest accrued on investment but not collected, commission and brokerage receivable on shares and debentures and other income receivable; 207,011, ,418,761 v) Security Deposits 7,304,385 7,324,385 vi) Preliminary, formation and organization expenses, renovation/ development expenses and prepaid expenses; 14,075,093 9,081,511 vii) Branch Adjusting (net) 394,975, ,013,702 viii) Suspense Account 209,250, ,525,338 ix) Silver - - x) Others 205,162, ,822,819 1,114,450,572 1,385,700,468

17 BORROWINGS FROM OTHER BANKS, FINANCIAL INSTITUTIONS AND AGENTS In Bangladesh REPO- Treasury bills Bangladesh Bank Repo - - Interbank Repo - - Special Repo Southeast Bank Ltd. - - Commercial Bank of Ceylon - - The City Bank Ltd. - - Dutch-Bangla Bank Ltd. - - BRAC Bank Ltd. - - Call loans Call Loan from Banks - - BRAC Bank Limited Janata Bank - - Standard Bank Ltd. - - National Bank Ltd. - - Citibank NA - - Bank Al Falah - - Agrani Bank Ltd. - - Dutch-Bangla Bank Ltd - - BASIC Bank Ltd. - - Call Loan from Leasing Co. - - Call Loan from Insurance Co. - - Call Loan from Other Institutions - - Other Borrowings Bangladesh Bank: Re-finance 153,403, ,403, ,403, ,403,792 Outside Bangladesh ,403, ,403, DEPOSITS AND OTHER ACCOUNTS Current / Al-wadeeah Current Accounts and other Accounts 5,449,978,866 4,856,810,829 Bills Payable 652,570, ,883,159 Savings Bank Deposits 4,862,360,010 4,230,046,723 Fixed Deposits 35,785,600,031 38,774,898,962 46,750,509,055 48,464,639,673 Page -16

18 OTHER LIABILITIES Provision for Loans and Advances 958,400, ,400,000 Provision for Investment 5,828, ,013 Provision for other asset 3,184,239 2,126,573 Provision for Gratuity 11,250,000 62,645,000 Provision for CSR Fund - 64,200,000 Unearned profit on Investment 4,620,186 4,853,664 Interest Suspense Account 212,112, ,080,502 Exchange Equalization Fund 2,996,337 2,996,337 Branch Adjusting (net) - - Interest Payable on Borrowings - - Provision for Income Tax Less Advance Income Tax 411,828, ,427,134 Deferred Tax Liability - - Dividend Payable - - Accrued Expenses 36,394, ,710,507 Audit Fees Payable - 209,000 Sundry Creditors 49,936,521 60,996,465 Others 378, ,891 1,696,929,767 1,833,739, CAPITAL Issued, Subscribed and Paid Up Capital 11,666,700 Ordinary shares of Tk. 100 each issued for cash 1,166,670,000 1,166,670,000 1,166,670 Ordinary shares of Tk. 100 each issued bonus shares 116,667, ,667,000 2,566,674 Ordinary shares of Tk. 100 each issued for cash 256,667, ,667,400 3,080,008 Ordinary shares of Tk. 100 each issued bonus shares 308,000, ,000,800 18,480,052 Ordinary shares of Tk. 100 each 1,848,005,200 1,848,005, STATUTORY RESERVE Balance on 1 January 1,138,330, ,525,946 Reserve made during the period 95,662, ,804,384 Closing Balance 1,233,993,190 1,138,330, OTHER RESERVE Revaluation Reserve Balance on 1 January 122,565,154 74,287,123 Reserve made during the period (3,533,597) 48,278,031 Closing Balance 119,031, ,565,154 Page -17

19 RETAINED EARNINGS Balance on 1 January 463,963, ,833,118 Dividend (cash) - - Income Tax Provision for the previous Income year - (23,970,800) 463,963, ,862,318 Net Profit for the period transferred from Profit and Loss Account 287,113, ,905,838 Less: Issue of Bonus 10% - - Less: Transferred to Statutory Reserve 95,662, ,804, ,450,839 1,101,454 Closing Balance 655,414, ,963, CONTINGENT LIABILITIES Acceptances and endorsements Acceptance Bills - Local 1,301,893, ,038,594 Acceptance Bills - Foreign 1,363,651,116 1,106,959,697 Acceptance Bills - Cash L/C - - Acceptance Liabilities - Back to Back L/C 133,711, ,340,339 Letters of Guarantee 2,799,255,608 2,189,338,630 Letters of Guarantee - Local 2,070,814,723 1,527,643,816 Letters of Guarantee -Foreign - - 2,070,814,723 1,527,643,816 Irrevocable letter of Credits Letter of Credit - Local 125,686, ,273,856 Letter of Credit - Foreign 3,037,482,094 3,307,744,862 Letter of Credit - Back to Back L/C 547,361, ,607,846 Letter of Credit - Usance (Foreign) 296,161, ,637,174 4,006,691,906 4,592,263,738 Bills for Collection Outward Bills for Collection 37,080,053 48,269,236 Foreign Bills for Collection 505,000 1,116,000 Inland Bills for Collection - - Local Documentary Bill for Collection 1,191,690, ,901,444 Inward Foreign Documentary Bills for Collection 261,962, ,985,000 Foreign Documentary Bills for Collection 294,861, ,830,505 1,786,100,137 1,331,102,185 Page -18

20 INCOME STATEMENTS INTEREST INCOME/PROFIT ON INVESTMENT Interest from Loans and Advances Interest on Repair & Recon. of Dwelling House (RRDH) 10,755,230 5,973,983 Interest on Consumer Durable Scheme 56, ,023 Interest on Marriage Loans 1,223,148 1,291,305 Interest on Car Loans 12,794,677 10,216,019 Interest on House Building Loans 43,630,526 28,893,817 Interest on Term Loans 282,843, ,441,257 Interest on Other Loans 112,002, ,870,157 Interest on SME Loan 5,000,810 24,288 Interest on PAD - EDF 159,128 - Interest on Staff Loan 2,931,763 1,418,807 Interest on LTR 148,542, ,229,440 Interest on Payment Against Documents (PAD) 14,336,413 7,542,095 Interest on Cash Credit 23,193,178 22,180,634 Interest on Cash Collateral 5,450,818 4,399,225 Interest on Overdraft 22,410,738 17,289,283 Interest on SOD 286,456, ,875,588 Interest on Inland Bills Purchased and Discounted 29,811,527 34,024,497 Interest on Foreign Bills Purchased and Discounted 713, ,617 1,002,313, ,163,035 Profit on Investment Profit on BARAKAT Car Scheme 479,332 - Profit on IHSAN Apartment Purchase Scheme 167,018 - Profit on BARAKAT Home Construction Scheme 27,997 - Profit on HPSM -Capital Machinery 4,025,684 - Profit on Murabaha (RM) 100,277 Profit on Bai-Muajjal 1,074,686 - Profit on Bai-Salam 219,729 - Profit on Murabaha TR 850,600 - Profit on Musharaka agt. IBP 675,155 51,307 7,620,478 51,307 Interest from Banks and Other Financial Institutions Interest on Fixed Deposits 44,427,695 45,134,309 Interest on Bangladesh Bank Foreign Currency Accounts 363, ,193 Interest received from Local Banks 3,899, ,345 Interest on Foreign Exchange Deals - - Interest on Call Deposits 35,504,144 12,871,667 84,195,344 58,229,514 Interest received from Foreign Banks 44, ,711 Page -19 1,094,173, ,726,567

21 INTEREST PAID ON DEPOSITS AND BORROWINGS Interest paid on deposits Interest on STD Account 53,656,456 14,719,565 Interest on FDR Account 626,042, ,807,774 Interest on Foreign Currency Deposit 406,171 2,495,969 Interest on Savings Account 50,230,297 36,432,473 Profit on TID Depositors 15,782,153 - Interest on Scheme Deposits 87,760,080 71,217, ,877, ,673,382 Interest paid on borrowings Interest on Call Deposits. - 12,363,056 Interest on Repo - - Interest on Other Borrowings - 692,125 Discount & Commission paid ,055,181 Other interest - Interest paid to Bangladesh Bank - 833,877, ,728, INCOME FROM INVESTMENTS Interest on Treasury bills - 106,872,157 Interest on Bangladesh Bank Bill - - Interest on Treasury bonds 162,249,944 42,186,034 Revaluation Gain on Bills & Bonds - 286,814 Interest on Reverse REPO 20,604 - Interest on Debentures & Bond 3,437,500 - Dividend Income 340, ,050 Profit on Investment of TIB - - Gain from sales of shares 45,965,756 11,018, ,013, ,190, COMMISSION, EXCHANGE AND BROKERAGE Commission on Demand Draft, Money Transfer, Telegraphic Transfer, Pay Order etc. 883, ,917 Travelers Cheque 7,000 7,720 Bills 2,496,837 3,473,124 Letter of Guarantees 15,716,714 5,547,568 Letter of Credits 25,339,046 21,901,970 Foreign Remittances 147, ,230 Commission on Sale of Government Securities 2,573,407 1,254,406 Fund Transfer Commission 32,835 6,372 Commission on Sale & Purchase of Shares 165,064 48,825 Under writing Commission 544, ,526 Comm. on Commitment fees on FCL - - Acceptance Commission 9,822,351 4,863,201 Foreign Correspondence Charges 34,000 25,000 Miscellaneous Commission 3,649,069 2,832,922 61,412,072 41,549,781 Foreign Currency Exchange Gain 41,065,006 35,822, ,477,078 77,371,804 Page -20

22 OTHER OPERATING INCOME Locker Rent 167, ,250 Swift Charge (Net) 1,671,620 1,257,693 Postage Charge (Net) 343, ,751 Incidental Charges ,279 Sale Proceeds of Forms 400,425 89,490 Service Charges 10,099,300 2,240,445 Service Compensation 305, ,000 Front End Fees 11,333,614 4,425,561 Notice Pay 244, ,200 closing Charge 235, ,355 Sale Proceeds of Cheque books 7,000 9,100 BO Account Transfer Fee 47, ,850 Introductory Commission 151,985 33,538 Service Charges on Omnibus Transaction 4,370 55,205 Recovery of Custodian Charges 66,229 28,398 Income through Credit & ATM Card 2,004, ,560 Profit on sale of Fixed Assets 134,519 - Port Folio Management Fees 25,692,167 - Port Folio Transaction Fees 93,997,237 - Service Charge on Passport 548,600 - Miscellaneous Foreign Exchange Income 11,246,250 - Miscellaneous Earnings 4,503,376 45,147, ,204,735 55,642, Salaries and allowances Basic Salary 56,601,702 40,067,820 House Rent Allowances 28,308,917 20,026,250 Conveyance Allowances 4,360,995 3,272,172 Medical Allowances 15,107,646 4,072,294 Leave Fare Assistances 6,167,897 11,806,383 Leave Encashment 3,485, ,500 Utility Allowances 651,566 - Manger's Charge Allowance 318,500 - Key Holding Allowance 165,000 - Festival Bonus 13, ,438 Incentive Bonus - - Bank's Contribution to Provident Fund 4,760,963 4,496,855 Bank's Contribution to Superannuation Fund 468, ,999 Bank's Contribution to Employees' Gratuity Fund 11,258,375 11,250, ,669,140 96,545,711 Page -21

23 RENT, TAXES, INSURANCE,ELECTRICITY, ETC. Rent 22,899,927 12,850,929 Electricity and Lighting 3,389,703 2,475,471 Insurance 5,493,093 5,988,357 Rates, Taxes & Excise Duty 696, ,902 Fees & Renewals 81,550 8,844 Generator Fuel 576, ,496 Gas/Water Bill 300, ,713 33,437,982 22,536, POSTAGE, STAMPS, TELECOMMUNICATION,ETC. Postage - - Telegram / Telex - - Stamp 5, ,814 ATM Connectivity Charges 365, ,855 ATM Maintenance Charges 750, ,000 Online Expenses 5,163,425 4,034,740 Electronic Banking Service - - ATM Card Expenditure 553, ,857 Internet Charge 442, ,900 Router Charges - - Router Charge 499, ,450 Telegram, Telex, Telephone, Trunk Call etc. (Net) 1,688,248 1,696,746 9,467,266 8,200, STATIONERY, PRINTING, ADVERTISEMENT, ETC. Printing and Stationery (Net) 5,210,421 3,757,265 Publicity and Advertisement 4,133,621 1,757,612 9,344,042 5,514, DIRECTORS' FEES Meeting fees 205,400 70,000 Other benefits ,400 70, Depreciation and repair of bank's assets Depreciation Fixed assets 23,410,307 16,878,432 Repairs Building 73, ,565 Furniture and fixtures 147, ,564 Office equipment 1,433, ,320 Bank's vehicles 1,739,771 2,046,946 Maintenance 727, ,730 Page -22 4,121,296 3,605,125 27,531,603 20,483,557

24 OTHER EXPENSES Business Development Expenses 2,511,222 2,168,426 Clearing House Charge 17,392 18,408 Conveyance 2,001,982 1,762,647 Entertainment 2,250,779 1,954,800 Car Expenses 27, ,582 Cash Handling Charge 359, ,800 Bank charges 6,583 3,861 Interest on Lease Finance - - Lease Rental - Cars - - Meeting Expenses 144,011 18,705 Donation, Subscription and Membership Fees 786,950 3,321,650 News Paper and Periodicals 134, ,557 Oil and Lubricant 1,821,198 1,514,090 Registration Charge - - Remittance Charges 354, ,442 Other Contractual Service 7,236,776 5,913,112 Internship Allowances 355, ,802 Honorarium for Banking Diploma 310,000 - Ex- Gratia 22,500 4,809 Service Charge - - Subscription - - Training & Recruitment Expenses 596, ,776 Traveling Expenses 1,930,959 1,362,660 Up Keep of Office Premises 884, ,477 Washing Charges 158, ,665 Loss on Sale of Fixed Assets - - Loss on FC Dealing - - Financial Assistance - - CDS Charge - - Car Parking Expenses - - Foreign Correspondence Expenses 585, ,914 Pre-opening Expenses 6, ,456 Amortization of Intangible Assets 1,639,796 1,819,062 Special Reserve Fund - - Share issue expenses - - CDBL Charges 12,699,700 - Security Expenses 805,916 - Foreign Remittance Expenses 1,457,945 - Cash Carrying Charges 239,190 - Wages paid to daily Labor 7,370 - Purchase of Utensils 67,515 - Medical Expenses 2,078 - Contact Point Verification Fees (RB) 19,900 - Miscellaneous Expenses 77,256 4,036,689 39,521,769 27,052,390 Page -23

25 PROVISION FOR LOANS AND ADVANCES Specific Provisions-against classified loans and advances (4,000,000) 28,976,000 General Provisions-against un-classified loans and advances - (2,961,000) General Provisions-against special mentioned accounts - 8,011,000 (4,000,000) 34,026, PROVISION FOR DIMINUTION IN VALUE OF INVESTMENTS: Decline in value of investment should consist of the following divisions: (a)dealing securities - Quoted Unquoted - - (b)investment securities Quoted 5,030, Unquoted - - 5,030,282-5,030, OTHER PROVISION General Provision for Off Balance Sheet Exposures 4,000,000 (6,608,000) Provision for Other Assets 1,057,666 81,521 5,057,666 (6,526,479) Page -24