Islami Bank Bangladesh Limited Auditors’ Report & Financial Statements As at and for the year ended 31 December 2018 S.F. Ahmed & Co. Chartered Accountants House - 51 (2™& 3" Floor), Road - 9, Block - F, Banani, Dhaka - 1213, Bangladesh. Phones: (880-2) 9894026, 9894346 & 9870957 Fax: (880-2) 9845135, sfaco@dhaka.net; ahmeds@bol-online. ‘Khan Wahab Shafique Rahman & Co. Chartered Accountants Rupali Bima Bhaban (54 & 6" Floor), 7, Rajuk Avenue, Motijheel, Dhaka-1000 Tel.: +880 2 9565136, 9551663, 9551821 Fax: 880-02-9551821 E-mail: kws@dhaka.netSF AHMED & CO, KHAN WAHAB SHAFIQUE RAHMAN & CO. CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS Since1 968 cn Since 1988 Member Firm of MLD Interautional A Member Firm o¢mgiworldwide - House #51 2&9 Foo), Road #9, Blok F. ‘Rupali Bima Bhaban (Sth & 6 Floor) ‘Banani, Dhaka 1213, Bangladesh 7. Raj Avene, Mtifeet, Dhaka-1000 Phones: 80-2 9894026, 9894346 & 9870857 Tel (0-2) 9565136, 95516663, 9551821 Fax (8202) 55042314 Fae (090-2) 9551021 Emil sfico@dhaka.net E-mallkwsr@dhakanet Independent Auditors’ Report ‘To the Shareholders of Islami Bank Bangladesh Limited Report on the Audit of the Consolidated and Separate Financial Statements Opinion We have audited the consolidated financial statements of Islami Bank Bangladesh Limited and its subsidiaries (the “Group”) as well as the separate financial statements of Islami Bank Bangladesh Limited (the “Bank”), which comprise the consolidated and separate balance sheets as at 31 December 2018 and the consolidated and separate profit and loss accounts, consolidated and separate statements of changes in equity and consolidated and separate cash flow statements for the year then ended, and notes to the consolidated and separate financial statements, including a summary of significant accounting policies and other explanatory information. In our opinion, the accompanying consolidated financial statements of the Group and separate financial statements of the Bank give a true and fair view of the consolidated balance sheet of the Group and the separate balance sheet of the Bank as at 31 December 2018, and of its consolidated and separate profit and loss accounts and its consolidated and separate cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) as explained in notes 2 and 3. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated and Separate Financial Statements section of our report. We are independent of the Group and the Ban in accordance with the Intemational Ethics Standards Board for Accountants’ Code of Ethics for Professional ‘Accountants (IESBA Code), Bangladesh Securities and Exchange Commission (BSEC) and Bangladesh Bank, ‘and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code and the Institute of Chartered Accountants of Bangladesh (ICAB) Bye Laws. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated and separate financial statements of the current period. These matters were addressed in the context of our audit of the consolidated and separate financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. ‘Measurement of provision for investment The process for estimating the provision for | We tested the design and operating effectiveness of investment portfolio associated with credit risk is | key controls focusing on the following: significant and complex. «© Tested the credit appraisal, loan disbursement | For the individual analysis, these provisions consider | __procedures, monitoring and provisioning process; | LiFe F one)S F AHMED & CO. mn the estimates and the market value of collateral provided for credit transactions. For the collective analysis, these provisions are manually processed that deals with voluminous databases, assumptions and calculations for the provision estimates of complex design and implementation. ‘At year end the Bank reported total investment of BDT 805.76 billion (2017: BDT 710.73 billion) and total provision for investment and off-balance sheet items of BDT 36.18 billion (2017: BDT 31.36 billion). We have focused on the following significant judgments and estimates which could give rise to material misstatement or management bias: © Completeness and timing of recognition of loss events in accordance with criteria set out in BRPD circular no 14, dated 23 September 2012; © For individually assessed provisions, the ‘measurement of the provision may be dependent ‘on the valuation of collateral, estimates of exit values and the timing of cash flows; Provision measurement is primarily dependent upon key assumptions relating to probability of default, ability to repossess collateral and recovery rates; KHAN WAHAB SHAFIQUE RAHMAN & CO. Mdentification of loss events, including early warning and default warning indicators; © Reviewed quarterly Classification of Loans (CL); © Follow Bangladesh Bank's circular and guidelines; Our substantive procedures in relation to the provision for investment portfolio comprised the following: © Reviewed the adequacy of the companies general and specific provisions; © Assessed the methodologies on which the provision amounts based, recalculated the provisions and tested the completeness and accuracy of the underlying information; © Finally assessed the appropriateness and presentation of disclosures against relevant accounting standards and Bangladesh Bank guidelines. ‘See note no 11 and 17.1 to the financial statements Impairment assessment of unquoted investments Tn the absence of quoted price in an active market, the fair value of unquoted shares and securities, especially any impairment is calculated using valuation techniques which may take into consideration direct or indirect unobservable market data and hence requires an clevated level of judgement. We have assessed the process and controls put in place by the Bank to ensure all major investment decisions are undertaken through a proper due diligence process. We tested a sample of investment valuation as at 31 December 2018 and compared our results to the recorded value. Finally, we assessed the appropriateness and presentation of disclosures against relevant accounting standards and Bangladesh Bank guidelines. ‘See note no 10 to the financial statements [IT systems and controls ‘Our audit procedures have a focus on IT systems and controls due to the pervasive nature and complexity of the IT environment, the large volume of transactions processed in numerous locations daily and the reliance on automated and IT dependent ‘manual controls. We tested the design and operating effectiveness of the Group's IT access controls over the information systems that are critical to financial reporting. We tested IT general controls (logical access, changes management and aspects of IT operational controls). This included testing that requests for access to tems were appropriately reviewed and authorized. SecturansS F AHMED & CO. KHAN WAHAB SHAFIQUE RAHMAN & CO. TGUOUE response to key audi We tested the Group's periodic review of access rights. We inspected requests of changes to systems ‘Our areas of audit focus included user access management, developer access to the production environment and changes to the IT environment. | for appropriate approval and authorization. We These are key to ensuring IT dependent and | considered the control environment relating to application based controls are operating effectively. | various interfaces, configuration and other application layer controls identified as key to our audit, Where deficiencies were identified, we tested compensating controls or performed alternate procedures. In addition, we understood where relevant, changes were made to the IT landscape during the audit period and tested those changes that had a significant impact | on financial reporting, Other Information Management is responsible for the other information. The other information comprises all of the information in the Annual Report other than the consolidated and separate financial statements and our auditors’ report thereon. The Annual Report is expected to be made available to us after the date of this auditor’s report. Our opinion on the consolidated and separate financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. Responsibilities of Management and Those Charged with Governance for the Consolidated and Separate Financial Statements and Internal Controls ‘Management is responsible for the preparation and fair presentation of the consolidated financial statements of the Group and also separate financial statements of the Bank in accordance with IFRSs as explained in note 2 and 3, and for such internal control as management determines is necessary to enable the preparation of ‘consolidated and separate financial statements that are free from material misstatement, whether due to fraud or error, The Bank Company Act, 1991 and the Bangladesh Bank Regulations require the Management to ensure effective internal audit, internal control and risk management functions of the Bank. The Management is also required to make a self-assessment on the effectiveness of anti-fraud internal controls and report to Bangladesh Bank on instances of fraud and forgeries. In preparing the consolidated and separate financial statements, management is responsible for assessing the Group's and the Bank’s ability to continue as a going concem, disclosing, as applicable, matters related to going concer and using the going concern basis of accounting unless management either intends to liquidate the Group and the Bank or to cease operations, or has no realistic alternative but to do so. “Those charged with governance are responsible for overseeing the Group’s and the Bank's financial reporting process. “Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a ‘guarantee that en audit condueted in accordance with ISAs will always detect a material misstatement when it gxists, Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated and separate financial statements.S F AHMED & CO. KHAN WAHAB SHAFIQUE RAHMAN & CO. ‘As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also: © Identify and assess the risks of material misstatement of the consolidated and separate financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. + Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, «Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. © Conclude on the appropriateness of management's use of the going concem basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the Bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated and separate financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group and the Bank to cease to continue as a going concern. ‘© Evaluate the overall presentation, structure and content of the consolidated and separate financial statements, including the disclosures, and whether the consolidated and separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation. © Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit, We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that ‘may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of ‘most significance in the audit of the consolidated and separate financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on other Legal and Regulatory Requirements in accordance with the Companies Act, 1994, the Securities and Exchange Rules 1987, the Bank Company ‘Act, 1991 and the rules and regulations issued by Bangladesh Bank, we also report that: (i we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit and made due verification thereof, Gi) to the extent noted during the course of our audit work performed on the basis stated under the ‘Auditor's Responsibility section in forming the above opinion on the consolidated financial statements of the Group and the separate financial statements of the Bank and considering the reports of theS F AHMED & CO. KHAN WAHAB SHAFIQUE RAHMAN & CO. Management to Bangladesh Bank on antifraud intemal controls and instances of fraud and forgeries as stated under the Management's Responsibility for the financial statements and internal control: 1) intemal audit, intemal control and risk management arrangements of the Group as disclosed in the financial statements appeared to be materially adequate; ») nothing has come to our attention regarding material instances of forgery or irregularity or administrative error and exception or anything detrimental committed by employees of the Group and its related entities {other than matters disclosed in these financial statements}; (ii) financial statements of Islami Bank Bangladesh Limited’s subsidiaries namely, Islami Bank Securities Lid. have been audited by Khan Wahab Shafique Rahman & Co., Chartered Accountants and Islami Bank Capital Management Ltd. have been audited by Hussain Farhad & Co., Chartered Accountants and have been properly reflected in the consolidated financial statements; (iv) in our opinion, proper books of accounts as required by law have been kept by the Group and the Bank so far as it appeared from our examination of those books; (v) the records and statements submitted by the branches have been properly maintained and consolidated in the financial statements; (vi) the consolidated balance sheet and consolidated profit and loss account together with the annexed notes dealt with by the report are in agreement with the books of account and returns; (vii) the expenditures incurred were for the purpose of the Bank’s business for the year; (viii) the consolidated financial statements of the Group and the separate financial statements of the Bank have been drawn up in conformity with prevailing rules, regulations and accounting standards as well as related guidance issued by Bangladesh Bank; (ix) adequate provisions have been made for advance and other assets which are in our opinion, doubtful of recovery; (x) _ the information and explanations required by us have been received and found satisfactory; (xi) we have reviewed over 80% of the risk weighted assets of the Bank and spent over 12,500 person hours; and (xii) Capital to Risk-weighted Asset Ratio (CRAR) as required by Bangladesh Bank has been maintained adequately during the year. 4. F. baa edee. U, 29) , R Y S. F. Ahmed & Co. ‘han Wahab Shafique Rahman & Co. Chartered Accountants Chartered Accountants Dated, Dhaka; 24 April 2019[Istemi Bank Bangladesh Limited and ts Substdiarles Consolidated Balance Sheet ‘Ag at 31 December 2018 3122018 3122017 Particulars Notes ee aon Property and Assets Cash in hand Tra) 67,463,919,812. 83,597,093,975 Cash in ane (including foreign currency) Taxi) 14,816,623,264 14,323,659.448 Balance with Bangladesh Bank & its agent bank(s) (including foreign 7(aXti) 52,647,296,548 69.273,434,531 currency) Balance with other banks & financial institutions 80) 63,398,992,795 51,810,458,481 In Bangladesh stax) 36,524,322 108 B35 TB, 000 Outside Bangladesh Bean) 6,774,670,627 21484,715,361 Placement with banks & other financial institutions 90 5 Investments in shares & securities, 102) 41,192,523,514 36,726,024,103 Government 10x) 32,103,637,770 30,120;885,770 Others 1o1@xi 91088,885,744 6,605,138,333, Investments 800,969,926,216 __70S,728,930,368 Genera investments et. M.(a). [755.370.1354 266 ][ 663,751,956 299 Bills purchased & discounted 1120) 41399.771.950 41,996,994,069. Fixed assets including premises 124) 15,347,979,149 15,476,980,273, Other assets 1340) 9,585,961,564 6.259,685.854 Non - banking assets - ‘Total property and assets 997 959,303,050_ —_899,599,143,024 Liabilities and Capital Liabilities Placement from banks & other financial institutions 14a) 37814,360,564 29,229,325,908 Deposits & other accounts 15@) 822,200,715,600_753,913,987,322 “Mudaraba savings deposits DITROAGTS,ID || 258,617, 512.656 “Mudaraba term deposits 272,853,581,050 |] 233,183,530,655 (Other mudaraba deposits 188.286.430.847 || 178,896,339,019 'Al- wadeeah current and other deposit accounts 79,147,915,842 78,777,003,219 Bill payable 4,128,092.739 4,439,801,793, Mudaraba Bond 160 15,000,000,000 '8,000,000,000 Madaraba Perpetual Bond 000,000,000 3,000,000, 000 “Mudarabe Redeemable Subordinated Bond 161 12,000,000,000 5,000,000,000 Other abilities 174) (65,789,768,627 55,975,910,953, Deferred tax liabilities 18) 1,687,851,558 1,815,789,827 ‘Total abilities aes ENTE Capitalshareholders' equity 55,466,606,701 50,664 129,014 Paid - up capital 192. T6,099,906,680 76,099,506.680, Statutory reserve 210 17,735,466,258 16,738,466,258, Other reserves 20 19,450,939,884 15)883,618,714 Retained earnings 40(a) 2,180,043,658 1,948,903,975 Non-contolling interest 404) 250,265 233387 ‘Total liabilities & shareholders’ equity 997,959,303,050_ __ 899,599,143,024 SOF i 9 3 adIslami Bank Bangladesh Limited and its Subsidiaries Consolidated Balance Sheet As at 31 December 2018 3122018 322017 Particulars ot aka cul ‘Notes Taka Tak ‘Oibalance sheet items Contingent liabilities Acceptances & endorsements z ‘Laters of guarantee 230 18,849,311,457 12,324,413,653 Irrevocable letters of credit including back to back bill) 126,911,641,579 |] 134,132,501,265 Bills for collection 27,230,744,011 23,291 421,693, Other contingent liabilities 959,400 959,400 Total TR997, 656.447, —_10.749,296011 Other commitments ‘Documentary credits, short term and trade related transactions : : Forward asses purchased and forward deposits placed a : Undrawn note issuance, evolving and underwriting feiltes : : ‘Unerawa formal standby fils, credit lines and other commitments : - Total : : ‘Total off-balance sheet items including contingent liabilities [ROTA —169.749,296011 “The annexed notes form an integral part ofthese financial statements. al yet ‘ Profesor Ma, Nazmal Hass, Ph.D Dr Ma, zor Rahman Chalrman Direcor Mas} is FCA, FCMA Ma‘ Mahedb-ul-Atam Director Managing Director & CEO “This isthe consolidated balance sheet referred to in our separate report of even date. 6A Kae. S.F. Ahmed & Co. Khan Shafique Rahman & C Chartered Accountants Chartered Accountants Dated, Dhaka; 24 April 2019Islami Bank Bangladesh Limited and Consolidated Proft & Loss Account sidan For the year ended 31 December 2018 wie IT Parte Notes — a Operating income Investment income 2a) [CRETE ISD | SOSSE SOOT Profit pid on madarab depois 2s) [_G7987,970365))|_ 6137028218) [Net investment income THOMO.G6ARSA 25804684 509 Income fom investment in shares & secures TERE SSE TST OTs o6 aT Commision, exchange & brokerage income 5507380,150|] 6306,19,706 (Other opeating income 230) soseene ses |__3.131551.531 ‘Total operating income 20, 189,0385300__—35979.562, 08 Operating expenses Salary & allowances THIRST | TSA ICT Rent, tne, insurances, electricity 14so9ssae |] 1,329,902273 Legal expentes Is,191362 16,391,766 Postage, stamps an elecommuniation ee 551613969, 49963 880 Stationery, printing an advertisement ee. 254138242 280,191 456 Chief executives salary & fees 320,000 12300648 Director fes & expenses 904.222 13364314 ‘Sharh supervisory committe’ fees & expenses 2927575 2456982 ‘Autres Sun9378 2.995.150, Depreciation and repairto banks assets 334385031, 901395679 aka expenses 601.358332 SI9,STLM6 Other expenses sgao.373441 || 200.113.972 Total operating expenses 19,403,320, 40_,—_18,797,081,000 Profit loss) belore provision 20,385.17.960_ 17,182,471, 038 Provision fr investment & off. Balance sheet exposures ina [— 6250686722 905.239, 108 Provision fr diminution n vale of investments in shares 172) 383,93. 101 8574631, Other provisions 4 61,746,642 351331.280 “otal provision Sr6 as _—__aTSGIS “Total prof Qos) before taxes H4083,391,75_—1203,428423 Provision for taxation fo the period TATROONAID 7882818678 Caretta 11700) [TAIT ARTIST Defer 180) 3.408230, $2.783,130, [Net profi loss after tax 0,300,055, 930,606,748 [Net profit after tax atrbutable to: S1030055 4920.06, 745 quity holders of IBBL. @310285,77 || 4920,569.957 Non-contoling interest 4000) 1678 36.788, Retained earning fom previous year 1geqooag7s ___1.717.280.77 ‘Add: Net profit ax (attbuable to equity holders of BL) G.310283,177 4820.568, 957 ‘hd: Excos deprecation transfered from assets reahation reserve wo retained canines 94270327 940,157 Less: Adjustment for changing in shares position of BSL - - Profit available for appropriation SD, ora Approprato BH9ASTATS 673,692,531 Slatutory reserve 210 ,00;00,000 635.59.578 General reserve m1 3,359.23,157 |} 2542238310 Dividend (previous year) 400 1, 609:90,668, 09,990,668, Retained earings 4010) 2.10,043.654 ||_1944.903.975, Consolidated earnings per share 420) 392 306 “Tae annexed noes form an integral prt ofthese Financial statemens ~aswet ofesor Md, Nazmul Hassan, PD ‘Chairman, i Ma. Syl Item, FC Director “Tis isthe consolidate profit & loss acount feed to in our separate repor of even date. SE Ofte | 5. Ahmed & Cx Shared Aceon Dated, Dhaka; 24 Apal2019 yay wv Dr. Ma. Zilla Rahman Director kate Kant ‘Managing Direcor & CEO[start Bank Bangladesh Limited and its Subsidiaries Consolidated Cash Flow Statement For the year ended 31 December 2018, " mi iT Parteular Nor bad Eu (Cask ows from operating activites Investment income SISTER TES EE Profit pid on modarata deposits 67367,761710]] — @28863,83,229) {come! dividend receipt fom investinents in shares & scares 1333389°575| 1,385 458,796 Fs & commission receipt in cash 5507380,180 6306.319,206 Recovery rom writen of investrents 37379857 7B 271678 Payments o employees (2431117566|| —13,968214148] (Cath payments to supplies (620,702,700) (663.368 69) Income tx pid (6a6034i449]] — 231380.20] Receipts om ater operating activities '410,057.230 3267170750 Payment for other operating activites 55482760 G.366,118 919) (@) Operating proft before changes in operating assets ‘Changes in operating assets and abilities Incratel(dcrease) of surtory deposits (Uneeaee decrease of et wading securities (Uncresedereseof placement to othe banks (Uncreaseydecrense of investment customers (Unereaseydacease of other assets Increase (decrease) of placement from other banks Increase (derese of deposits from other barks Increase decrease of deposits received om esters Increase create) of ole abies account of castomers Increase decease) of wading abies Inoreasel(deceas) of othe abilitios (Gi) Cash lows from operating asets and inlities [Net ath flows from operating activities (AD) Cath flows from investing activites Proceeds from sale of securities Payment for purchase of securiteyBGIB Placement sli Refinance Fund Account Payment fo purchase of securitiemembeship Purhasesale of prope plants & equipments Purchasesale of subsidiaries Net Cash lows from investing activites (B) Cash lowe fom financing actives Receipt from sue of debt instruments Payment for redemption of debt instruments Receipis fom issuing ordinary share right hare Dividend paid in Cash [Net eash lows from financing activites (C) [Net inereasl decreas) in eash (AB+O) Ades: effecss of exchange rte changes on cash & cash equivalent ‘A ash & cash equivalents a begining ofthe year Cash & cash equivalents atthe end ofthe year “The annexed noes frm an integral pat ofthese financial statements. aot Professor Md, Nazmul Hassan, Ph.D Chaleman Ta, Direeior 12 276,153,703 Tan. 887 5 238203,500 (wo240995848]] — @9.10,017¢2 G.oi6078258}|] —G.125,988,458 12308,352,908 (a1212723) 338 582.509 67,6083765810 |] 68,722035917 499,308684 1861571656 7025,346,67) 7. 967,205310 (788,192,896) 1838 781.577 Tove OREO —— Ts aTs TI Gs4s3236n]] —G264472395] - '00000,000 652397449] (caseasaen] CAMERAS Tes TOOTH SOE TAT 1,609,950. 1,508 90,668 5,390,009,332 3300,009502 14532,709620) 29,791,370, a1.920,199) 13296437 135407852426 106,602,85,454 8@) GSR, Ea wv yey De Ma Zr Rana Drecer a. Sah Managing Director & CEO “Tis isthe consolidate cath flow statement refer to in our separate report of evn dt. BA Rharmaber, SF Ahmed & Co. Carer Accum Date, Dhaka: 24 Apel 2019 Kinan Wahab Shafique Rahman & Co. Chartered Accountant7 roeure [owere [rarer Sorc =< cme ee Got] oar rs Tiaras fancoweer fiir 7 Seal ievacw eel (arsari era ml ornvoret ama AN TT) oro é ‘eaten wy mcr jornvm — [ewwcere [arsine newraa orn acme ce Ge lero (arena oo areca rarer peatoe nono See aap I aTIslami Bank Bangladesh Limited Balance Sheet ‘As at31 December 2018 TA 201s SAzaOT Particulars Notes ae Taka Property and Assets (Cash in hand 7.0 61463,910,602__83,597,089,565 ‘Cash in hand (including foreign currency) a TH ETG614,054 || 14,505,655,034 Balance with Bangladesh Bank & its agent bank(s) (including foreign 72 | $2,647,296,548 || 69,273.434,531 currency) Balance with other banks & financial institutions 8.0 __$7,874,994,226 —_45,908,508,558 In Bangladesh 8 [31100373599] 43.863,793,197 Outside Bangladesh Bi 6,774,670,627 ||_2.444,715,361 Placement with banks & other financial institutions 90 . : Investments in shares & securities 10.0 41,610,684,658 __37,943,613,630 Government 0.1 [—32,108,637,770 |[—30,120,885,770 Others 102 |__91s07,016,888 J|_7.822,727,860 Investments 11.0 805,759,976,216 __710,728,930,368 General investments et. 11.1 [764360,204,266 ] 668, 731,936,299 Bills purchased & discounted 112 |__41,399,771,950 ||_41:996,994.069 Fixed assets including premises 12.0 15,346,415834 —_15,475,408,196 Other assets 130 9,373,649,939 6 306,222,414 Non - banking assets 5 ‘Total property and assets DOT AIO SOLAS __899,959,772,731 Liabilities and Capital Liabilities Placement from banks & other financial institutions 14.0 -37,814,360,564 —_29,229,325,908 Deposits & other accounts 15.0 822,573,124,845 __755,022,245.959 “Mudaraba savings deposits 15.1 [~277,829,620,039 |[— 259,389,011, 780 “Mudaraba term deposits 273,163,556,080 |] 233,413,444,655 (Other mudaraba deposits 152 | 1881291;340,751 |] 178.897.159.066 [Al wadeah current and other deposit accounts 153 | 79,160,514,966 |) 78,882.828,665, Bills payable 154 4,128,092,739 ||_4.439.801,793, Mudaraba Bond 16.0 15,000,000,000 __8,000,000,000 ‘Mudaraba Perpetual Bond 3,000,000,000 | 3,000,000,000 “Mudaraba Redeemable Subordinated Bond 16.1 {__12,000,000,000 | |_5.000,000,000 Other liabilities 170 65455556853 55,561,279.370 Deferred tax liabilities 180 1,690,256,0631,817939,174 Total liabilities THERESE MS 949,630,790 Capital shareholders’ equity, 54,896,303,450_ __50,328,982,320 Paid - up capital 19.2 [16,099,906,680 | 16.099,906,680 Statutory reserve aio | 17.735,466.288 || 16,735,466,258 Other reserves 22.0 | 19,450,930,844 || 15,883,618,714 Retained Earnings 40.0 1,609,990,668 ||_1,609.990,668 ‘Total abilities & sharcholders' equity 997,429,601,675_ _699,959,772,731_ 12Islami Bank Bangladesh Limited Balance Sheet ‘As at 31 December 2018 SAaa0S SEARIOT Particulars Notes an — Off-balance sheet ivems Contingent liabilities ‘Acceptances & endorsements i : Letters of guarantee 230 | 18.493i14s7|| —12324413,653 Irrevocable letters of credit (including back to back bills) 1263911,641,579 || 134,132,501,265 Bills for collection 2n2zo7adoit || 23,291,421,693, (Other contingent liabilities 989,400 959,400 ‘Total 172992,656407 __169,749,296011 Other commitments Documentary credits, short term and trade elated transactions zs : Forward asets purchased and forward deposits placed - : Undrawn note issuance, evolving and underwriting facilities : : ‘Undrawn formal standby facilites, credit lines and other commitments, s : Total : - ‘Total off-balance sheet tems including contingent liabilities T72,992,65667_ _ 109,749,296011 ‘The annexed notes form an integral part ofthese financial statements, \ pao w Professor Ma, Nazmul Hassan, Ph.D Dr. Md. Zillur Rahman Chairman Director ‘ Ma, Syfartstat, FCA, FOMA’ i, MaitGab-ul-Alam Director Managing Director & CEO “This is the balance sheet referred to in our separate report of even date Ke ‘Wahab Shafique Apheka ¢ ; Chartered Accountants Chartered Accountants (iS GaA)s SS Dated, Dhaka; 24 Aprit 2019 13Islami Bank Bangladesh Limited Profit & Loss Account For the year ended 31 December 2018 Te oF Pariesars rows || Ta tun ‘Operating Tacome Investment income mo [—SneoTRSTE| sree Profit pid on mara depois 330 |_G7999261'540)|_ 61388092010) Netinvestent income Bileagv1968_ —FETSRSSARTS Income rom invesmens in shares & secures aco, [TART TAIS | BTT Commision, exchange & brokerage income zo | Sarassiaso|] — 6ase9ssioao Otter operating income deo |_sasaeo0s||__ 218.s54.432 ‘otal operating income TasveaaD.TE 3858625880 Operating expenses, Salary & allowance 290 [TATA TIE] —TSSSRTIODT Ren anc, insurances clase. soo |‘ 1assayo00 |] 1324646255 Lega expres 310 131133862 16,391.66 Postage stamps and elconmaniaon ee. 320 s8a70176 5314s Stay pining and udversemen! 330 asnas6an | 29,650.83 Chet extotves salary & fos so 4320000 taa0nts Dien foes expense 350 rosesizz nasa Shor supervisory commie’ fees expenses 360 2907515 2456952 Andi few mo 3008525 2875000 Deprevaton and repro be asses 380 ssziroars || sooszease Zakat expenses ns eorsse32 || sios7ias Other epee 390 |__s7030o60s||__19913s4s70 Toul operating expenses Tasr HggHy —TarsLAU308 Profi Gos) before provision 20259381396 1608813875 Provision frinvsinel fof blace het expos rnaa_ [7 62068642 | 4505259,708 Provision fr dination in vale of investments in shares 172 20,104 088 soa Other provisions, 174 67746682 55,531280 “Total provision TEESE AL. 98 “otal profilo) before anes 13.70,046 928 2.03318 077 Provisln for axon forthe perod 728903490 7420371718 Cen tx wnna [ieaatooa Tanai Defered ix expel incoms) 180 3.663388 54350175 Net profy Gow) after wx Ts 1a3458 49290657 Rettnd ening on previous yar T go.s.s6r" ——T.60990,568 ‘ad: Net profit aertax Consens 4992906389 AG ce nme aig tee nas ort anil Frotcrvatahe for appropriation orm ‘Approprintion: Trrowuss 630779204 Sion sere x10 [—Pooooonien | sssiss7e Genera vocne wat | dssoqzsisr |) 2542236310 Dividend (prvious yeu) soo | Yaos'sooises ] 509.9068 Renined singe soo L__Leoosonges || 50959008 Earnings per share (EPS) 20 an 291 The annexed noes form an ner par f thse financial semen. ay w eet ‘ Profesor Md, Navn Hasan, PLD Dre Ma, Zur Rahman ‘Chairman t Dies Ma, fal Islam, FCA, FORT ma arbfAicaiom Direor Managing Dfector & CEO “hie the prot & loss account refed i in or separate repr of even dt. 5. Bhar tee. Life. ares Kear Wah Siatigns Ratan 2B Chartered Accountants Coa Dated, Dhaka; 24 April 2019Islami Bank Bangladesh Limited ‘Cash Flow Statement For the year ended 31 December 2018 Te wT Particulars Note Ld ay ‘Gas lows from operating activities Investment income LATIAIGST || 32458 GOATS Profit pai on mudaraba deposits 67,379952,889)| _@8876593,675) Income! dividend recep fom investments in shares & socrtes 1138228259 || 031,681,818 Fees & commission receipt in cash 5,479.51190 |] 6 259,986,060, Recovery from writen off investments 37379857 7421,678 Payments to employees 2404,141.217)) (3,6385551.279) ‘Cash payments to suppliers 620.460,730)|] (362,837.29) Income tx paid 66359.982;890]] —_(6133,986,729) Receipts from oder operating activities 33514612,350 |} 2.784,124,449 Payments for other operating activites G.5ss,186280)|_G.347.686,370) Operating profit before changes In operating assets 28206217 10,252,789,116 (Changesin operating assets and lables Increase decease) of statutory deposits : T ‘lncresedeereate of net trading secures : : (Uncen) dctease of placement to other banks 5 : (Uncreaty decrease of investments to customers (95031,045,848)|] (943100017602) (Uncreaseidecrese of other assets 6.067,27525}] — G.365.848912) Inerease(derease) of placement fom other banks §,585054686 |] 12.308,382;908, Increase decreas) of deposits from ober tanks (431,212.72) 338,392,809 Increase decrease) of deposits received from customers 67.982,091308 || 69,831,405.758, Inerese decent) of eter Habits account of exstomers - . Increase decreas) of trang liabilities : : Increase decreas) of eer ibis 4s0ns4gai || __6.892,669,047 (a Cash flows from operating assets and liabilities 77 1S N75200) — (814,847,299) [Net cash flows from operating activities (A)=(Fi) (625,671,073) ___1937,941824 Cash lows from investing activities Proceed fom sale of securities BGUB BRETT AH] — ASIA TOT Payment for purchase of securities BGIB 5 : Placement to Islamic Refinance Fund Account 3,000,000:000| Payment for purchase of secures/membership : Purchase/sae of property, plants 8 equipments (ssaosoazn|| —asas142n) Purchaselale of subsidiaries a [Net eash flows from inverting activities (B) GRR ITSSS, —— Ta TST TH Cash flows from financing activities Receipts fom swe of debt instruments FOU RAID || 5 B00, HHH VOT Payment for redemption of debt instruments : Rowps from issuing ordinary share ight share : : Dividend paid in Cash 4,509,990 65)]|__ (1.609 990,668) [Net cash lows from financing activities (C) '5,390,0095532_ _—3,39,009,332_ [Net inereasel(decrease) in cash (A*BC) (4.154,763,096) —30,067,732,896 ‘Ada Less): effets of exchange rate changes on cash & cash equivalent (11930.199) 13296487 ‘Add: cash & cath equivlents at beginning ofthe year 129,505598.123 __ 99,424,568,790 Cash & cash equivalents at the end ofthe year 450° 175.3, 904808 _19,505.598,135_ “Theannexed notes form a integral part of these financial statements set art ae rofesor Ma, Naz Hasan, PLD Dr. Mills Raha Geass recor eee wheké, Me setae Managing Dietor& CEO “Tiss the ash flow statement refered in our separate report of even dat. 2E tpmeedico ; KrecrblabetShabrin bse, S.F-Anmed & Ce Giavtered Accounts Charred Accountants Dated, Dhaka; (XS fo Penis (igen) \see Ser Se oe lower Sameer eee ard worse [urwcure —— [ecrvewrn — ecvwsc — [aesaer —Jororver feos [area = [errs Taevare [over won| co cr fear ru) rar lanune = ere Cd a _10a ve emma RC. sumeanoaoy pas reo 3 ay aS Tt ee te ep wana oda pesos mo oy puso! nw SBHRD JO HOMIES 25, 099 9 somone sepa eeene Core coetens ee i / Seep beat CS A = feces T [orrieen o are 7 covers wear vou above Zc want [area (raeoa'vou d ioc wy 92 raed, ep wana yo vos sed no oy pauses omnes Kup 51 PU, sepa woud amn7Z P40 lye ewe yg “sseg mere PW Jos} Some TERRE [SF EOT TEATS RECT [Fev SOSOFTE Ter TTT Livescore —_[swiasreesre esrosroora | irysee ees vat SOE TRL ooo oor one zr ae RS aH egEMPTIN ao0 000 OOO pag od RPAH S90 9ST DST ee KT PREP SISSY SD, ELTON) SSL HHO? WAGE SORTRTSL | waveIISTER | FITERTTOTOT posse et FOE HFTE TEC IOTOT TELE RCR [SIF TEV Tas [ IBTHTOROTTT SORTA OTIS roe'stvorest ToT OTF WERT ORI [OS 1 aoe TFET 50 aHTUITTY —_—_[eorwewecy [os TeCOsT TOTTTIT WEVGPTS : TOO OOTOTE CERT OTT SIRI FH SS TIN AT THRTIOR i PERTTI. SS z So Rok g-1 owow vor dn pour qsperiong ue Terest1 1a 1a 13 “4 14a 14a Note tothe eae staterent For the yar ended 3 December 2018, “The Bankand is activites Introduction Isami Bank Bangldesh Limited (RSBL] (ecinaterefeed toa "the Bank") was established a public limited banking company in Bangladesh in 1983 a he fst Shah based Scheduled commercial bark in the South Eat Asia Natural mods operands sbstanaly ere rom those of ‘Gherconven.onal comer! Danks The Bar conducts te business onthe Staahpiciples of Mudraba, Mushraks, Bat Murabha, Bu Maj, ine Purse under Shit! Met, Ba Salam, Bar-seSat and Uj te. Thee a SharTsh Supervisory Commie in the Baak which ensure tht the activites ofthe Bank are being conducted onthe precept of sam, “The shares ofthe Bank ar listed with both Dak Stock Exchange (OSE) Limited and Citagong Stock Exchange (CSE) Limited. The Bank caries out ‘a tannes actos hough is Head Ofc in Dhaa, 16 Zonal Os, 342 branches including 60 Authorised Dealer (AD) branches and 3 Of hore ‘Banking Units (OBU) in Bengladesh. The Princip place of basins ithe Repstered Ofie of he Bank sitused at sami Bank Tower, 4, Diksha (Comm! Ase, Dhak-1000, Bangladesh These fiance sateen ea snd fo th yar ended 31 December 2018 include the conoid nd ‘Souvte nancial statements ofthe Bank The conoid nancial ssementscomprse the inane statements ofthe Bank and ts subsidies (entoned n Note - 14 toaster refered wo 35 "he Compan, Nature of business Principal atvies of he Bank ‘Commercial banking sevies All kins of commercial benking services ar provide ty the nk to he customer following the principe of Islamic Shariah, the provisions ofthe ‘Bek Companics Act, 1991 as amended, Bangladesh Bar's drecives nd srectves of other ego authaies, Islamic mlerostnance Islamic micro-finance represents miccfnanceof the Iie finance industry, Under Itami micro-finance, major focus is given om isprovement of tving andar of poo people The projet are closely monitored otha he members are relly benefited. The Bank provides hs sevies under the ‘lela of Rural Development Scheme (RDS) and Urban Por Development Scere (UPS). “Mobile fnanca serves "Cash ‘Te bank has launched mobile Finacial services on 27 December 2012 unde th name "sami Bank mCtsh as per Bangladesh Bank approval (ceeence no, DCMPSIPSDI37(WY2012321 died [4 June 2012) Islami Bank mCash offers diferent services ough Mobile phone that include (dpe and withdrval of ech money, fund transfer from one scount ape, esving remittance fom abroad, owing account alanis and min Sateen, giving and eeving sry, rool recharge an pyre of wily bil, merchant bil payment ‘Of abore banking unit OBU) Bangladesh Bank has aproved the operation of Of Sore Banking Unit (OBU) of Stam Bank Bangladesh Limited ose at Head Offce Complex ‘rancy Dhak, Utara Branch: Dhaka nd Agnbod Branch-Chtagong through later no. BRPD (P-3)744(111)2010-032 ded 28 March, 2010. The Bont commenced the epeton of is Offshore Banking Uni fom 08 02.2011 at Head Office Complex Branch, Dak, fom 77092011 at Agrbat ‘ranch, Chtagong and fom 01082018 at Utara Branch, Dhaka, Due o having diferent functional eureney (Noe 2.) the operation of OBU has foam paced at foreign operation” and according) relevant financial poring standards have been applied consistently that mentioned m note 5). The financial sttomens of he OBU ar inlaed inthe separate franca Saterents ofthe Bank and evenly in he consolidated facil “nements The separate nani! atements of O3U ae shown nthe functional currency (.e USD) es well asthe presentation cunency ie, BOT of the Bank (ie, BDT in Anneaure-B. Sobsilaris of the Banke Islami Ban Securities Limited BSL) ‘As per Bangladesh Secures and Fchange Commissions (2SEC) Leer No, SECIReg(CSE/MB2009(444 dated 20 122009 and approval of ‘Banlacesh Bank though Letcr No. BRPD (R-1}717/2010-47 dtd 0702201, the Bank exalishd a subsidiary Company named Iam Bank Seouttis Limited operate stock broker and stock desler atvis “The share capil of lai Bank Securities Lis Tk. 2700000000 divide int 2,700.00 shares of T1000 each out of which share capita fhe tr is Th2888796 00 divided int 2,699,796 shares of Tk 1,00 each which represent 9.992% of al shar of he sabia company BSL was corporat on 22032010 and de of sommencerent of business was 23 05.210. Required capt was transfered to BSL on 25 052010 nhc oprang banc under th ens sued by the Bangladesh Scores & Exchange Commission (BSEC) Asa stockbroker, BSL. a8 a Zan in be puree and sl of Shariah approved listed secures and realizes commission on tansetions in accordance with approved commision shed. {sta Bank Capital Management Limited QBCMIL) ‘Ase Bangladesh Bank BRPD Circa No, 12 ated 14102009 and approval of Bangladesh Bak though Leer No, BRPD (1/717 201047 ded Tega zor0' te Bank established anther subsidiary Company named “sami Bank Capital Management Limited” wo opt porto manage, Udoranting nse management ete TSCM wos incorporated on 0108-2010 and eqied capil was tanseed on 06 07.2010 “The share capital of Ist Sank Capt Management Lis TK300000,00 divided into 300000 shares of 1,00 ach, out of which sare Male he bunk i 14299993,00 divided ino 29.93 shares of T,00¢ ech which represent 99:98% of ttl share of the subi crema. Te company bas obtained Merchant Banker Registration Cerificate on 3103 2019 from Bangladesh Secures & Exchange Commision © ‘pert the atin of lsve ManagerUaderwrting Paolo mange. BL Exchange Sigapore Pee. Lid. “BBL. Exchange Singapore Pe. Lt bs bee incorporate in Singapore subsidiary of star Bank Banglades Limited fr remitnce servis nd ‘tng nde hot nde the Companies Ac, CAP, 50 ofthe Repl of Singapore. il 31 Deemer 2018, no hae cpa of he subsidiary has ceed ty ts prea company is Islami Bank Bangedesh Limited. Terfore, the finial sateen of IBBL Exsheng Singnpre Pi Li hs oot teen pepred and accordingly not consolidated with th fhe arent eth bankaw uu . of preparation of nancial statements Reporting framework and compliance thereof “The Bank and its subsidiaries ae being operated inst compliance wih the rls of lamie Stash The financial tatemets(onslidted & separ) have been prepared in sezordance with he guidelines of Isle banking issued by Bangladesh Bank trough BRPD Creuls No. 1S tes (08112009. The Fine Repring Act 2015 (FRA) was enacted in 2013. Under the FRA, the Financial Reporting Counc (FRC) s formed and itis Yet to sue financial eporing standards for public intrest ents sich as banks hee International Financial Reporting Standards (ERS) a approved i the Insitute of Carered Accountants of Bangladesh (ICAB) ar stil applicable Accordingly, the Manca satements ofthe Bank comin 1 be roparedin accordance wih Ifematonal Financial Repring Standards (RS) andthe requirement of the Benk Company Ac 1981 as amended the fas and regulation ised by Bangladesh Bank (BE), che Companies Act 1994, te Secures and Exchange Rules, 1987, Sanda ised by the ‘counting and auditing rgtniation for Ise Financial lnetiions (AAOID, #8 member ofthat oganzaton. Whee the repoing guidelines ‘sued by Bangladesh Bank and Ban Companies Ac ile wits hose of IFRS, the requiements ofthe Bank Company Act 191, and prowsions an ‘eas ised by Bangladesh Bank shall rvall_ As such the Bank as departed fom tose requirements of IFRS inorder to comply with the ules ‘sd egustions of Bangladesh Bink which re diloed below Pretetaion of aan statement ers [hs per IAS “resentation of Financial iaterens innit sateen shall compe stent of finan pestn, statement of profit or fos and ‘ter comphersve income, sntement of changes in equity, sstoment of cash flows, notes to the financial statements comprising sant of [scouting polices and oer explanatory information and respective restatement of tems inthe earlier fnanil statement, where applicable Forhermare IAS" sts tht an entity shal presen Hs cumen and non-cuent sets and libies, as spent classifications in its atemet f Finan position rglaesh Bank “The financial statements and certain dislocue thesn are presented in 8 prescribed fomat (Le. balance she, prof and os account, cash ows statement slaement of changes in equity. Lgudity stoner) in accordance with the guidelines ofthe “First Schedule (econ 38) ofthe Bank Companies Act 1991 as amended tad BRPD cule na 15 ded 09 Noverbr, 2009 and eter subsequent guidelines of BB Inthe prescribed format BB there sno component of ote comprehensive income and accordingly the element of ther comprehensive income andthe tt theeon (i any) is ‘eeognized diel inte satement of changes in ext. The aces and ible are presented in eecordance withthe preseibed fomat of BD and ‘cordnay net clase as erent and non-curent classication as euied by IAS Invermentsin share and secures ers 1s pr requirement of [FRS-9 "Finacial Instrument investment in shares and sects ae generally casted ihre fir vale though rot of Tos ora fir vale hough thet compretensive income std measured inal a five plus ansaction css hat ae direct aibutble to he ‘easton ofthe Financial ase, lomever inthe ce of Gralla clsfed and measured at a ale hough rot r los, easatons costs ‘re immediatly recognised in profit or less, Chang nthe fe vale of shares an secures mens ta valu though profit or losis recopnsed inthe statement of profit or lots and changes in the fir vale of shares an secures measured a fr al through oer comprebesive income is recognised in the other comprehensive income and are never elsified io profit ons. Bangladesh Bank [Aspe BRDD circular no, 14 ded 25 Jane 203, ovement shares an Secures ar classified unde held to mari (HTT) or held for ain (Gtr) “and measred at cont Transition cots at are directly atibutble othe acquisition added to the ina fur abe except for Snancil assets ‘las as HFT whee they should be ecognised it pot fos. [Ate ini ecogion, HET Gov, ecurtis se essed according to DOS cular no. 05 dated 26 May 2008 and DOS circular no, 05 dated 28 ‘Sanoary 208, where eorization loss is charged wo profit and oes account, nar t-aret los on revaluation i charged o pot an ss esau but ny realized gain on such revatio i ecognied in revaluation reserve account. HTM Gov. secures are measured at amortized cos and Increazeldcree related to amortization is ecogsized in guy. ‘As per BRPD cic no. 14 deed 25 June 2003 ang DOS esr No dated 24 Novenber 2011, investments in quoted a unqute shares te ‘evsled a the year-nd at mat pie anda Book Vale of ast suited balance sheet respectively. As sub, provision i mae against he dimuon Invalue of investments considering neting of gin los Invesmest in mua fun open-end is eval a ower of cost nd higher of (marke alae in 95% of NAV) as per lnsineton of DOS cular no. 03 dated 12 March 2015 cose end mutual fund is ealed at lower of cost and higher of {take velue and 85% of NAV) a8 pet DOS cela o. 10 dated 28 June 2015. Assoc, provision is made for any less arising fom diminution i. ‘alae of nveseents (polio bss, lerwieinvesmens ae recognized a a5 Provision for investments Rs [Roper IFRS 8 an ety shall eognise an impsiomentaiowance on loans and advances based on expected credit losses At each epring di, on ely shall measure the impairment allowance fo fans an advances at an amount equal tothe lifetime expected crt loss i the eet ikon these tana and advenes es increased sinifiealysbge snl recognition. For thse leans and advances for which the eet ik has ot inerasod Sgitcay sine inal reeopition on eniy sal essure he impuiment allowance tan mount equal to 12 month expect cet ses Bangladesh Bank Aree DRDO ciular No.1 ded 23 Sepember 2012, BRPD citer No, 19 ded 27 December 2012, BRPD crt No 0S dated 29 May 2013, ‘BRPD ciel No 16 aed 18 November 2014 anda BRPD Cirulse NoO1 dete 20 February 2018 general provision a 028% to 5% under tfeent ategors of unlesfied vestments (oodandardivesnens) hs to be maintained regardless of objective evidence of mpsimest Abo provision {ar sabstandar, dub and bad & los invesmonts have to be provided at 20%, 50% and 100% respectively (except shorter gical ant Imer-credis whete 19 fr all uncasfedfvestnet (mepular& regular) 3% or eub-standar end doutsfl investments an 100% for ba & oss ‘nvermen) depending on he duration of ver. Provision for OfF-balanee sheet ems ers ‘Tere tno conep of flan sheet tems in any IFRS; hence thoes no requirement for making provision or disclonue off-balance sheet ims ‘on te face of the sstement of Financia poston.“ip vu. 1%, Bangladesh Bank [hs per BRPD steulr No 14 dated 26 June 2003 end BRPD circular no- 15 dated 09 November 209, of balance sheet items (eg. Later of ee, {Lever of guaaate, Bil for olin ete) must be disclosed saparatly onthe face ofthe balance sheet. Futbemore, es pee BRPD Circular No 14 {td 33 Sepenbes 2012, BRPD Ciruar No 9 died 27 December 2012, BRPD Clreulr No? dated 21 Tune 2018 and BRPD Circular No 13 dated 18 october 2018 «general provision 1% is roqurd to be provided foal ofbulance sheet exposures except il for Colleton eee he Bank ‘on beni of is customers end ised gusrantes, Meningie that Provision agalns guarantees sued by Bank ito be Kept in different rates ni ‘0150, 075% & 01% considering the BB aig gre equvalest of the bank providing the counter gurantee. Recognion of lavertment income in suspense Rs Invesiment fo casomers (Teas and receivables) are gently classified at smotzed cosas er IFRS 9 "Financial Insets" an investment income {is vecugalsed ty suing the effective intrest at metod ovr te fer ofthe invesonent. Once an investment is imped, the ety sal apply the ‘tetive meres rae tothe motel cost ofthese investment Bangladesh Bank INR BRPD eval no. 1 dted 23 September 2012, once an investmet i cssed, investment income on sch investment ae na lowed be reconised come, ate the coresponding amount neds tobe credited oa investment income in suspense account, which presented ability inthe balance sheet. Financia instruments presentation and dlsclosure Irae! cmes Bangladesh Bonk puidcines categorie, recognise, measure and present Sani insromentsifeenty fom tose prescibed in IFRS 9 Avsuch fll dselsure and presentation requirement oF IFRS 7 and TAS 3 eanot be made inte nancial sateen Financ Rs I per IFRS 9, anil gunrantes ae contracts ht requ an entity to make specified payments to eimbure the bole for aos it incurs eco & ‘enited dettor ful to make payment when dv in acordance wit the terms ofa bl insrument. Financial guaran abies ar recognises realy eth evalu nd the intial file is amortsd ove the life the nancial guaran. The financial guaran haiti subsequent ‘arned othe higher of his amore amount en the preset value of ny expected payment when x peyment under the guarantees some probable Feil evra ae che within ether ais Bangladesh Bank [Ar per BRPD Id Gatct25 Jone 200, finn gurantee such lene of edit, eter of guarantee wl be urate as oflance sheet toms ‘Balance with Bangladesh Bask: arRs Balance with Bangladesh Bank that ae required o be Kept as part of cash eserve requirement, shuld be eed a ther asset a itis ot avaible for tein day day operations as per IAS 7"Sttement of Cash Flows Bangidesh Bank ‘Balance with Bangladesh Bank is womd as ash and cash equivalens (Cash Reverve Requirement) Cash fw staterent ues ‘The Cash low samen canbe propored using cite the direct method othe indirect method, The presentation selected o preset these cash Nows inamanaer ta most appropri forthe bsies or ndas. The method selected s applied conse. Bangladesh Bank Rem ERPD Ia dated 25 June 203 and BRPD 15 dtd 09 Nove 2009, ash low statement iso be prepared following x mtr of diet and indirect metods. Nom-banking asset ers ‘No indication of Non-banking st found in any IFRS. Bangladesh Bank ‘Rar BRPD I dated 25 June 2003 and BRPD 15 dite 09 November 2009, there must exist fe item named Non-benking act Preeti of intangible asset ERs [Am intangbl asst must be iat and rsngised, andthe sclosre must be gven a per TAS 38 atngible Asst. Bangladesh Bank ‘The cn realtor intangible ssn BRPD 1 dated 25 June 2003 and BRPD 15 ated 09 November 2009. ‘Of-balance sheet tems res [Rs peclFRS, there ino eqitemen fr ealosuroff-aanc set items on the fae oF the ance shes angladesh Bank MET D cnr 0,4 date 25 Jane 200, of tals het ems (eg Letra ereit, Lets of gurantee) mst be dosed epartey on the face ofthe Belace sheet Investment net of provision rs, Investments should be presented et of provision. Bangladesh Bank ae 1 Sted 2 lune 2003 and BRPD 15 ded 9 Nove 209, provision On investments are presente separ 5 abit and can aot ‘be tied faa investments.it. Fry aan asa a as 1 at as an Revenue ‘Aspe FS 15, revenue should te recognized on accra tai ut def th wigue nature of Islamic Banks, come oe investment under Madara, ‘Mosaraa, Bs-Slam, Baas-Sart and Ujrth modes (Khih Card) is ecountd for on relznion basis pet AAOIFI and Bangladesh Bak uieines Measurement of elements the financial statese Mexsurement isthe proces of determining the monetary uncut t which the clement ofthe financial statements arco be reopize sd ced in the financial sete. The measrement bai doped bythe Bank is histarial ent except for and, building and few of the nail assets which tre stated in ecordanc with he polices mentioned inthe fespectve nots Basi of comsalidation ‘The rou financial sttemens include the financial teens of the Bank adits subsidiaries that itcontols. The Bank prepares consolidated fnencit steents wing uniform occoating policies or smilar ransactons and ter evens in sila cicumstnees, Considion ofan inves shall ein from the dete investor cbs conto of he ives and ease when the investor loses conto the invest. “The Bank presets non-conlling intest in he consoliatod statement of Fiancial position Balance Shet within equi, separately rom the ty ofibe owner of the Bank Changes inthe Bask ownership intrest in subidiary that do pt result i Tosing contol of he subsiry ae exuity Inesitons (Le. tansctions wth owners tet apa) a we) Consldation procedures > combining lik ies of asst, Habiits, equ, come, expenses and cash lows ofthe parent with hose ofits subsides > oeting(liminaing) the crying amount of the paren’ iveseent in each subsidiary andthe parents portion of ety ofeach ssi > climint in fal intragroup asset a ibs, ay income, expenses and cash Hows rating to ansavtions between nts of the group (pois to ossesresoling fom ingroup transitions ta ee recognised in es, seh as entry and xed ates [proper plan & equipment), re ‘imine in ll) Inagoup losses many indicat a mpaient tht egies ecogaito ste consolidated rani sates. Inverment bss the Bank separate fina Whe he Bank prepares spate nancial safement it counts or invest in subsidiaries cos, Functional and presentation eurceney “The consolidated and separate inca statement ofthe Bank te presented in Bangladeshi Taka which isthe fonetoalcureney ofthe Bank ang its ‘nbsiari except fr Otsore Basking Unit (O3U) whet the irctional carey is US Dollar (USD). All finan infomation peseted in Taka as bce rounded Yo th nearest inter except there indeed, Ure ofeatimates and judgments “The preparation of financial statements requires management to mske judgments, estimates and sssumptons that affect he aplication af accounting polis and the reported amounts of ses, lables, come and expenses and dclesure requirement for contingent assets and abilities during an tbe doe ofthe nancial sazements ‘Aca ests ray difer fom these estimates. Estimaes and underyng sumptions are reviewed onan angning basis, Revisions of scouting ‘mates are recopsized inthe period in which the estimate revised an in any fue periods affected Infomation abou significant reas of eximationuncesinyand cia judgment in applying secounting police that have the ox sgiicant fst om the amounts recognize in he fnacial statements include depreciation, anorization, impairment, pst employment benefits abies, acral ‘wxaton and provision, Comparative information and rearrangement thereat Comparative figues hae been rearranged wherever consteel necessary 1 ensue beter compari with the einen! period without casing ey Jimpact onthe profit nd val fasts nd bits as eprint inna semen Going concern When preparing fnecial statements, managennt makes an aiessent ofthe Bank’ ability to coninue as» going concem. The Bank repre finan seteents ongoing cancers basis Accrual bass of accounting ‘The Ban prepares its financial statements, excep for csh ow infomation, using he acral buss of accounting Since the acral tas of counting ‘aod, the Bank recopnae items as assets lilies, ety, income (excep te items mentioned in note XI) an expenses (the elements of finan ‘etement) when they Sut the finns and ecogniton celta for those element inthe Framework Materiley and aggregation “The Bank peesents separately etch material clas of sma ems The Bak present separ items fe iasiniar ature ot fnction unless hey are Imvvaeria Frnancal Sateen sl fom prosesing large number of transactions or oe events that ar agaregated ino clses according to heir rte function, Onseting The Bank docs ot fet assets and sbi or income and expenses, unless required or permitted ty BB euidelines or IFRS, Repoting period “Tha ian statement ofthe Bank and its subsidiaries cover one calendar yar rom 1 January 201831 December 2018 ‘Auterizaton ofthe nancial statements frase “The consolidated financial sateen nd the seer nancial sateen ofthe Bank have een authorized Friese by the Board of Directors on 24 Apel gaaaus a aur a0 a aa san (Cath flow statement ‘Cash Flow Sisement is pepe in accordance with IAS 7"Saement of Cash Flows" aswell as te guidelines fr islamic Ranking issued by Bangladesh Bank though ARPD Circus No, 15 dete 09.11 2008 and BRPD Ciclar No 4 dated 25.06.2003. The Statement shows the stctre of changes in cath nd cash eulalens ding the nancial yea Samet of Changs in Equity hasbeen prepared in scordance wit IAS 1 Presnation of Ftancil Statements" a well asthe guidelines fr aie banking sued by Banglsdesh Bank though BRPD Circular No, 5 ts (811 2009 ad BRPD Ciclar No 14 dated 25062003, ‘Liguiystatement Liuiity Statement hs been prepared based onthe ridulemsining maury of sets and bles as on 31 December 2018 as pe the idelnes for lane banking issued by Bangladesh Bank though BRPD Circular No, 15 daled09.1,2009 and BRPD Cicalar No.1¢ ded 25052009 as fellows 7) Baance wih ober banks and nani into, tae on the basis f ther espetive maturity tem, 1) tavesmentn share & secures aro the bass ftir respective maui, {i General investment ae othe basi of thi ecover/epyment schedule; is) Fkedasets (proper, plan equipment] ar on the basis oftheir wef ives: ¥) Other ast are onthe basis of te ealzion/amonizton; +i) Deposits andoter accounts aro the bass of het maura payments vii) Provisions and terials ae on he basis oftheir adjusimen'etement said) Dae to perpetual in nautematry, Modaraba Perpetl Bond (MB) sported under maturity more thn (ve) yes. Ts) Madara Redeeable Suborinted Bond is ered under maruty 1 (one) 10S (five) years for Tk. 1060 (oe thousand sn) crore and ‘Te. 140 one handed forty) crore under mere han 5 (fe) yas ‘Changes in accountng pois ‘The Bank changes is aecoueting policy only if he change i equied by TFRS or Bangladesh Bank Quidlines or rss in he farciasaterents roviing sible and tore eevart infomation about the ees of wansactions, ether events o conditions on the Bant’sfnncial poston, fine [efomance or cash lows. Changes in accounting polices tobe made ough retrospective application by adjusting opening Dalance ofeach etd ‘Components of equity te anew poly has lays been aphid (Changes in accountng eninates Enimatcs aie bees of uncertines inherent within them, judgment is required but this doesnot undermine relibity, Ect of changes of ‘sccoufng estas is ineluded in poft or for account ‘Sommary of sigaiiant accountng polices ‘Accounting policies are deterinet by eppying the relevant uidelines of Bangladesh Bank aswell ashe relevant IFRS. Where there is o vale fielines of BB and [FRS, mangement uses ts judgments developing and aplyng an accountng policy ta sus in information ta i relevant nd relia. The Bask selects and eplies ts acounting polices for perio cosstely for similar ansactions, oe evens and conditions, vless TRS of Bangladesh Bank guidelines specially toques or permis eatgoraion of tems for which diferent policies may be appropri, Te accounting polices stout below have Been eplied consisey in all mater respects to all periods presented in these consoled fnneia Casha ‘cash and cash equivalents include nots and coins in had and at ATM, balance eld wit Bangladesh Bank nd its agent bank, balance with ater ‘ans and nani nstutions which rent onary suse to chang in vale cash equivalents Investment in shares and secures Investment in shares ed secures eter than Invesmest in Bangladesh Government Islamic Investment Bond) ae initially reognsed at cost and bsnquenly measred and accounted for depending on heir lasicaon oie as either bel to matty or be for tain, Transaction costs that fre dilly trbuabe to the oyun added to the inl eos except forte investment casted as eld for tang where thy should be ‘mcogized in poi ras. Invesiments in quoted and unquoted shores are revue athe yen at market pie and at net assets value (NAV) of ast audited balance shest ‘eapectvely, Ax such, rvisin is made agaist ihe ditinton nv of ivesents neing of gin Mos aries fromthe make of he secures, Invesimen i mutual find is reveled is memioned in Note-3.23, As sich, provision is made fr any lass aking from diminution in vale of ‘nvesimens (polio basis). Investment in Government securities ther han investnent in Bangladesh Shipping Corporation are measured Goh ily and subsoqeny a cost the Ban is ro allowed to ivest in imeres bearing goverment scutes lke T-ood, T-bill ee. So the insrucions and iculars ese 10 the recognition and measurement of those instrument are ot pliable er the Ban Invesiment in Bangladesh Shipping Corporation was nly reogized at cst. Transaction costs dire aibuable othe acquisition added 10 the ot Ale inal recognition fvestnents are mesure at he yer end maka peice and change nthe markt price ecognined in equity under the ed elution supe. Investent in subordinated bond ie measured bath italy and subsequently a os Held wo Marri (ETM) Investments whic are ntnded to be held ill maturity ae clatifed as ‘Held to Mauri’ (HTM). These re measured at amortize cost teach ear tnd by king nto acount any dseount oe premium on aeguston, Premiums are amortized and dieouns are accredited, using the effesive oF Fisloncal ye. Ay inctese value of oc invesimens is booked to equy but decease to profit and les account RFIDY, (ER es = 3 Accountants enews? 2 S ye D322 Held for Trading (HFT “These are investments primary eld for sling or tang. Ae inal recopnton, avesments are marked to market and any dees in the resent ‘ale recognized inthe Prot nd Lass Account and any increas booked to Revaluation Reserve Account hough Prot and Loss Account sper ‘DOS Cie oS dae 28 January 200. ‘3.23 Investment Intl recognition and subsequent measurement Toad Tnvriment ce | gah | Measirement tier ital recognition ara sa wa vow Deke ond Coa Toa Toe wes ue cox famggienenitieowal ange a tt mim stars (ona) Com flowrofconorN Ame Vaie NAV) _ [aso MeFedies cnet but ansaid average con price (CP) NAVaw “O95, Muti und (Open-end) com —_ftteneqited provision pr unit willbe (RP) = lcP-Navow "095 Les (nto profit and os account bt no unlized ein booking, fc» Maret Vale (MV) or CP> NAVE * 08s, then requized provision (RE) per unit wil Mat fund (Ciase-end) Cost Joe incas of MV> NAV #085, then |RP= CP-MV ori) incase of MV ey 250% om 100% 230% % 100% Investment Sioa Delon : mara * om To leeaerbiae ™% aoe] som | 100% ™ 20% 008 Provision for des Provision for diminution of vale of shares and muta funds, placed under other lili, hasbeen made on polio Basis (gin net of following ‘DOS ctl No. Of dated 24 November 2011,DOS circular no 03 dtd 12 March 2015 an DOS ercular no, 10 dated 28 June 2015 respectively. Foe “anguoted shares, provision hs been made bed on availabe NAV of respective ns of unsshares. AS onthe eprig dat, the Bank sponsored Tk. 1T60600 milion in four Mata! Funds (owe open-snd & tw clas-ng), Moreover, the Bank invested Tk, 0.0 milion nan opened Mitl Fund Desa ar tated n Note 10 of hese anal statements Provision for off-balance sheet exposures ‘In compliance wih BRPD circular no. 14 dated 23 September 2012, BRPD cicular no. 19 dated 27 December 2012, BRPD Circular No dated 21 Jie 2018 ond BRD Circular No 3 dated 18 October 2018 the Bank has Been mining provision agaist of-alanceshet exposes (aly ‘contingent seiniites)Note-2 LV Provision for ther assets Provision for other assets is made a per the nstutons made in the BRPD circalr No, dated 2 June 2001 Le, 100% provision is required on other sete which ae ostnding for one Year or mae ar used as boss ton of val of shares and secures Provslon fr nostro accounts Provision fr unset transaction in nostro acount is made a er FEPD crculr no, FEPD (FEMO) /01/2005677 dated 19 September 2005 of. Foreign Exchange Policy Department (FEPD) of Bangladesh Bank On the reporting date, the Bark bas no unsetledwansetons otsanding for more than 3 months and no provision has been ade ths regardaus sane 31162 sansa aut aan aa ana suaa sna suns aus aanad ans 33 Other provisons,aceruals and contingencies Recognition of provisions, accruals a {A grovision it rcogized when th Bank has resent obligato (loa or coastuctive) asa result of @ past event it is roebl that an outfow of resources embodying economic beefs wl be required to sete the obligation: a relable estimate can be made of the amount ofthe obligation ‘Acer re labitis to pay for goods or services ha have been recived a supplied but have not been pid, voiced or fomally aed withthe ‘pple, including amount deo employees. contingencies Contingent labile ae not rsognized i the financial statements. isla on contingent abies has bean mado on te fae of balance sbeet ‘under OfbalanceShos ems a per BRPD ela No, 14 date 25 June 2003 Measurement of provslon “Te amount eeognied at a rvision i the best estimate of the expenditure requ to sete the prsta obligation atthe endothe repating prod Changes vd wes of provisions Provision i teviened atthe end of ech reporting pari nd ajstod to refet he current est eta. Imo lnge probable that an ot of recquces embodying eznomie bneis willbe equed sete te obligation, he provision is reversed. provision suse only fr expenditures for ‘which the provision was orginally recognized. Only expenditures ht rate tthe onal provision ae se against. Sting expenses agaist a ‘rovision tht ws original recognized fer another purpose woul conceal the impact of we diferent evens Post employment benefits “Tae Bank provides variout longtrm and shoe benefis tothe employees under diferent schemes, Detail ofthe beni plans given below: Defined contribution plan ‘A defined cotton pani postemplsment benefit plan under which an entity pays fixed contributions toa sear entity and has no legal or ‘cansrcive obligation o pay further amounts Obligations fer contibutions to defined contbuin plan are recognize as personnel expense in pri ‘or loss in the periods during which related services ae rendered by employes. The Bank maintains one finded defined contmbuon plan Tots employees - Provident find Provident fund “The Provident Fund is forthe regu and confimed employees who wots fra minimum period of Sve) yer atthe Bank nd it came ino Fre with fect from Tet ay of March 1986, The fund reeves contbutins@ 10% ofthe basi pay bth om employes and employer Defined benefit plans ‘A defined benefit pan ia posteplaynent beef planter han a defined cotton plan. The Banks net obligation in respect of ined benefit ‘plans i aleuated separately Tor each plan ty exnting the amount of future Benefit that employes ave earned in retum fo Bei service in he ‘ue! an ror periods. The Banks wo funded defied benef plans Gray fond and Superannuation fend. Gratuity fund “The Gratuity Fund forthe regular sn conimed employees ofthe Bank was essed on 01 March 1986, The employees who served lest 7 (seven) years, served for minima 12 (Wel) years & served fo 20 (wen) years ath Bank ae ented to get ratty equivalent to Kone) mons basic ay, 15 (one and a half) monte” basic pay & ettled 1 get 2 (v0) mans base pay respectively foreach completed yas of service nd action Theol Adequate connbutions have Been male as per the rsommendaon of acura valuation report during the yea. Acti valuation ofthe sity fund was conducted up othe year 2018 by profesional ctu. Superanstion fund ‘The Fund came into free with effet frm the 19 June, 2008 was established for financial help to the members of the Bank Employes Superanustion Fund and thf in eze of retirement, death, psa day ef employee while in sevice or fan ncidene of ike nature copabe oth Boatd of Tastes and eiement om the service, ‘Short-term employee benefits Shortem employee benefit cisions re measured on an andicounted bass and ate expensed asthe related service i provided A Labi is recognized forte amount expected tobe paid the Companies hs preven legal or constructive eligation to py this amount a est of pest ‘mvc provide by the employes andthe ebligaion can be estimated ea. Other employe Benet (Other employee Beefs include whic te ot includ in short-term employe Denes, post-employment benefits nd oe termination benefits Benevolent fund “The Benevolent Fund forthe regular and confirmed emplayes ofthe Bank was established in the year 1986. This Fun smn wed for payment of ‘choles tothe meritorious dents among the children of the Bank's offices ad sub-stal.wo allow shor term quit to met some unexpected {hd specifi nods of the staff ofthe Bank like scien, cial weament, mariage ceremony ofthe employees and their dependent ee. The Bank ‘Sorbted TX 15.0 milion tothe fund dring the yer 2018, ‘Workers Profit Participation Fund (WPPF) | per Bangladesh Labour Act, 2006 as amended in 2013 al compas al within the scope of WPPF (which inluées Bank) ae require to provide ‘Sift prt before charping such expense to their eile employees win the sulted ine. The Bank obtained opinion from its ga advisor ‘eending this se which td that the Bank ent equ to make provision fr WPPY asthe provision of Bangladesh Labour Act 206 as amended onads wih tt of the Bank Companies Act 199, A auc he Bank did ot make ay provision during the year for WPPF. Taration “The tex expense forthe pri comprises cuenta ad deferred tx. Tax sresogized in the income statement, excep inthe eae elas fms recngnize dirty in equty In this cae the tx also ecopnized diel inequity. ER ; 23ysas aus2 aaa suas 34a aus ass Current tax Current is the enpected tax payable onthe table income forthe er using tx aes enacted or substantial enacted atthe reporting date and any adjustment to the tax payable in respect of previous years. Provision freuen! inom tax hasbeen made on table income of the Bank as pet folowing ates: FTypeotincome en aT usier income 3150% 40.00% cenit ein 10% 15% om 15% te tncome (Divided income) 2000% 200% Deferred ax Prineipe of recogation Defeed a recognized as come ofan expense amount within the tax charge, and included inthe net prof Floss forthe period. Defered tax relating totems del with clin egy i recognized dein equ. Recopio of aaable temporary ference {A defer ae abit ig acogized fo al able dence, exept the extent tat he deterred to aii arises fom the intl ecoston of ‘20d othe inital recognition ofa asset or lability ina wansaion which not busines combination; and al th time ofthe transection, fects nether ccouning profit a aah prof (ax ls) Recognition of deductible temporary erence ‘A dared tax ase is ecgnied for al deductible temporary difrences to the extent it is probable tha table prof wil ease against which the deduetbletmporary irene can be usin, unless he deere ax ast aries fom the inital recognition of an set ibility I 2 transaction that snot busines combination, and the time ofthe ansacon, aes neithe eecountng profit nar txable pote os. Defered tases ad abies are measured atthe tras that are expected to apply tothe period when th set i elie othe i tse trates nd as) hat have ean enacted or subtantely eaced by he end ofthe epeting period ily is sted, Deferred taxon revaluation ‘The evaluation des not et rable profs inthe period of evaluation and consequely, the tax base ofthe assets ot adjusted Hence temporicy Aifeence aries. n upward revaluation wil therefore give ie oa deferred tax biably. [BBL recogni he undying revasaion dire in eu, So the deterred tx hereon is also recognize as par f tx relating to equity TBBL transfers cach yea frm revalation sult eaned eaings an ‘snout equal tothe dierence between the depreciation base on the cos ofthat asset The amount transfered inet off any related deferred tx. ‘Share capital and reserves Capital Authorized Capital ‘Avthoriae Capitals the maximum smount of hae capita tht he Bank ig authorize to isa per its Memeorandum and Ailes Asaiton Paid-up Copia Paihup Capital epesents total amount ofsazcolder’ capil that hasbeen pi in fll by th sharcholers.Sharehldes ae ented to recive «vided as approved ro time to ine inthe Anal General Meting ‘Share Premium ‘Sar premium aos rom ale of sme un-ubscnbed Right Shar forthe year 1996 a above the par vale and ean be ula sper section 57 of the Companies Act, 1954 Statutory reserve [As per section 24 ofthe Back Companies Act, 1991 at amends test 20% ofthe net profit before ak wansfered io stuary reserve cach year ‘nti he cumulative alice of the reserve eq the paid-up cpt Anes revaluation reserve This represents the difrence between the book value andthe re-valued amount of premises (Land and Buiig) of the Bank as asesed by rofessonal values in the year 200, 2002, 2003, 2008, 2005, 2006, 2008 and 2012 which were reviewed by the then ator auditors. To calle Capital to Risk Waghtod Aare Ratio (CRAR), 50% ofthe sane was considered asa component of sypplemertsy capital a per Bangladesh Bank BRPD Circular No. 24 dated 03 August 210 pt 2014, However 3 pot BRPD circular 1 dd December 21,2014, te revaluation reserve for Fixed ‘ses [propery plat & equipment) wil gradually be deducted from Tlet-2 capil wih phase in manner sang fom 2013, Acer, 20% ofthe ‘evan reserve hauled for Tir? capital tthe yea nd 2014 Bas ben deduced wile calculating eligible cpt at the yearend 2018, Revaluation reserve of veruites Investnent in shares of Bangladesh Shipping Corporation quali for Story Liguidiy Reserve (SLR) as pee Bangladesh Bank Letter No. BCD (PyP44234T) 108 deed 08.11.1983, BRED Cielar No 15 dated 31102008, DOS Circular Leter No 10 dated 11082008, BRPD Cielar NoO3 ‘ded 12032008 and DOS Circular Leter No0S dated 2605 2008. The shares have been valued 3s on 30.12 2017 em the bs of closing mart price of Dhaka Stock ExchangsLimied (DSF) The upls i ceed o Revalistion Reserve on series account and $0% ofthe evaluation serve to 2014 as bee aken a8 component of Supelmentny Capital as per Bangladesh Bark BRPD Circular No. 24 dled 03 August 2010, and shown inthe Statement of Changes in uly ae per Bangladesh Bank guigelines up w 2014. As por BRPD circular 18 dated December 21, 2014, the revaluation reserve fo securities bas been deste 20% in 2018 whl eweuaing eligible capa, Non-controling intrest, ‘Non conoling intrest the equity i the subsides har snot atibutabl, diet rine othe pent. The Bank atibuesthe rot ot ass td cach component of equity ote owners ofthe paren and othe nor-contlingintereats. When the proportion ofthe equity el by on-ontling interests changes, the Bank aust the earying moan of the conn and nn-conling interes to reflect th charges in thei relative interest the sbsiiressay aus as. nasa ass 346 36 3162 3163 3164 6s ar ‘The Hank presets aon-contolig interest th consolidate ttoment of fiarcalpostion (Balance Shet) within nu partly fom the equity ofthe owas ofthe Bank. Changes inthe Bank ownership interest in 2 sueiiny tat donot res in lsing conto of the sbsiiry ae equity transaction (i.e. ansctione with owners inher capi a8 owner). Reglatoy captain line with Base IL ‘Tut December 2014 spe Revised Regular Copal Framework in ine with Basel I, ull anoust of genera provision fer urlsie investments nd off balance sheet toms & S0% of tho ests evalution reserve and revaluation reserve of secures were eligible as supplementary capa However, a per Guidelines on Risk Based Capital Adequacy (Revised Regulatory Capital Framework fr Banks in ine wih Bese), BRPD No.8, ded 21 December 2014, Avets Revaluation Reserve ad Revauain Reserve of Securities wil gradually be deducted in a transionalarangement starting fom Janwary 2015 to December 2019 (20% each ys) Accordingly regulatory capt fr the period has been clelted complying with ll of ‘hese changes as per Revised Regulatory Capi Framework for Banks i in with Basel Foreign currency transactions Inia copii ‘A foreign currency wansactin if recorded, on intial reppin in the funcional cureacy, by applying to the foreign curency amu the spot ‘xchange rte between the fconsl eureey andthe fri cuecy athe date ofthe wansacton. Subsequent measurement {A forcign currency transaction may give ris to asets or iabilites tha are denominated in a frign currency. These assets nd Hibs is anslated into the Bar's fnctionalcarency at each repoing date. However, tesation depends on wheter the ases or libtes ae monetary or non Monetary emt Fein cureney monetary ts oustanding at the ed ofthe reporting dae are tasted using the elsing rat. The diftereace between his amount nd the previous canyng amount in functional eureny isan exchange gun oss. Exchange diferences arising the setemet of money tems oF fn ens monetary ems ats diferent fom thas at which hey were arsed on inital recon during the petid on previous Fnancal ‘teens ecognized in profit or losin the period in which they aie Non-monetary tems [Non-moneary items cared a historic costae tasted using the exchange rae a the date of he ansaction when the ase rst (itor ae) ‘They ar not subsequently retrained in the individu fsa ements ofthe Hank Non-moneary ons cared at fr vale re Kanlted sng theexchange ate atthe de when th ir value was determined, Wien sano os on 8 non-monetary itm i eognized in equity, any exchange component ft gin o loss is recognized inequity, Convery, ‘nhena gin or las on a non-nonearyitet renghzed in profit ras, any exchange companert of tat ano los eogria in profi oles. “eanslation offorelgn currency financial tatement ‘The assets and ible of foreign operations (Nol 1.3) ae anata int presrtatin cureny inthe euret statement of Fanci poston using the closing rata the epring de. The income and expenses f frig options are waned at sot exchange rates athe date of rnsatons a5 Jong ae practicable; there verge rate of exchange as been sed Fein curencydifencs arising on waslaton are recognized ney under the bead tanlson reserve. Investment income Income fom genera investments is aosountad fer on aril tsi excep fo nvesmens under Musharla, Maduabs, Bu-Salam, Bab-s-Su and [Unrah (Khideah Cad) modes of lnvesment where the ivexment income i accounted fron realization basis. The Bak dots not charge any ent daring the gestation pid of ivestent against Hie Purchase under Shika Melk (PSM) mode of investment but ities the sale prc ofthe assets ‘ahigher evel in so a way 0 cover is expected ate of tur Sac income is recognized on elizton basis, ProfiRentCompensation accrued on lassie invesment ae suspended and accounted fo as prea ssed by Bangladesh Bank in his repad fom time to time. At the tine fecovery oe regulariton of thor investment the related Icoae which was suspended and show a bit is taken as invesien! income (except compenston sper clare ised by Bangladesh Bank. As 2 esl all the vansfeed amount to investment ‘oom fom suspense dring he yea has aleady bes insluded nthe irvesment income ofthe Bank Profit on depois with ther bank & nani instinions is accounted for on acl basis Sharing of vestment income Incase of investment, Madabefand gts reference ove cose fad The investment income cared through deployment of Marat Fund is shared by he Bank andthe Madarabs epost athe peared rata Income trom investment n Bangladesh Government Islamic Investment Bond (BGIB) Prof fm investnent in Bangladesh Government sme Investrent oad (BGIUB) is aecounte for on an ceil basis. lancome from lvestment in subordinated bond Profit fom investment in suborinated bon is accounted for on an acral basis Fees, commision and exchange income Fes, commission and exch income on services provided by he Bank ee recognized as and when the read services are rendered Commission charged ocstomers on lar frei an leer of uaranee we credited to Income a the time of eeting the transactions. Dividend income Dividend income fo invermens is acouned for when the ato ceive incomes etbished Expenses “Management and oter expenses Expenses inured by he Bank are recognize on a acu basi Goris, sccurtanls 2 nessaan 3am ait saga au93 sa0 aa Profit pad on depois {A pr agreement bewoen the Muara depositors andthe Bank in ine with Madarabs Principle, the Madarbs depositors are enitedo gt minum (65% ofthe investment income eared trough deployment of Mudaraba Fund as per weighage assigned to each typeof Mudaaba deposit Inthe Year 2017, the Bank pid 65% of lnvestnent Income eared through deployment of Madaraba Fund, Mudaraba Depots donot share ay income dived fom various banking services whee thei fand isnot involved and any income derived ffm Invesing Bank's Equity ad ether Cost Fee Fund. Al- Wadoeah Deposirs do not sare any income of the Bank. Profit is paidrovided to Muara Deposit accounts at provisional rae on hal yearyjeary/aniversar basis considering overall projected growth, perfomance and prinblity ofthe Bank during the yer Final Rates of profit of ty accountng Year are declared afer Sralizaton of Shah Inspection report and ceifyng the Investment Income ofthe Bank bythe satory suitors Lease payments ‘Asp TAS-I7, payments made under opertng ests re recognize in profit or loss ona stnghttne bass over the term of the lease. Talat akat pa bythe Bank the ate of2 58% instead of 250% a the Bank maintain its nancial statements lowing Gregorian Yen) and calelted onthe closing balances of Share Premium, Sutuory Reserve, Genel Reserve and Dividend Equalization Accounts, Zaki charged in th Prof & Loss Account ofthe Bank spr “Guldline for tame Banking sve by Bangladesh Bank through BRDD Cireular No, 1S dated 0.112009. Zakat ‘on Pai up Capital and Deposits nat pid by the Bank, since its th responsibilty of the Shatboldrs and Depostos respectively Disidend payments Final dived i recognized when i i approved by te sharbolders in Anal General Meeting (AGM) The proposed dividend fo the year 2018, therefor, has ot ben ecognied a ably bowever coed inthe balance bet in accordance wih IAS 10 “Evens afer the Reporting Pex” Dividend payable to the Bank's sareolders i rosogized ae liability and deducted fom the sharholes’ equity i the pened ia which the shareoldr ight reais the dividend i esblshed Revenue, ng expenses &lonses pr ted by Sharan Income (oubfu, compensition & ther caring) which is probit by sarah arent beng nce nthe distributable nome of the Bank Doubt income Deut income which i proitited by Shaikh due to lpees in compliance of Shariuh principe fo Invesment as pec Shah Supervisory Commie repo i iced in th investment income ofthe Bank and appropri amount of corpora x provided on cerdingy on ese whole ‘mount wicher relied or. tno dsb to either depstor or sarholers ofthe Bank rater he aun net off orport ks wanstoed to.an acount ited “Doub ngomesecount under ote ables of the Bank (Not-I7-3.2),Oniyrelzed amount of doo ncome (on whieh ‘corporat thas already been pid dio ncison in investnent income) i then expended fer charabl purposes From the year 2014 the Bank hs decided to ltoduce a sep account fr dob income afer providing carport income ta. Accordingly, neo Corporate tx out of doubtful nome hasbeen wansfered to "Goubl income acount” a charge in pea & las acco under oe provisions (Nate 1732), Compensation ‘Bank charges compensation on over investments under B-modes, The amount of compensition isnt iced in investment income rather kept sepanely under ote isbites(Not-17') tiled as” compensation secoun Applicable ak onthe amount is provided fom thse acount ‘Realina mount of compensation on which corporietax ha sleaiy been povided are expended for charitable purposes. Otter earnings Interest received om the balances belé with frign tanks and from foreign curencyclewing account with Bangladesh Bank are rt credited to income, since itis ot permis as per Shh, These are expended for chartablepurpeses after payment of orport income tax thereon, Inter-ranch ransetont “Transactions with rear intr-ranches and units ae reconcile eal and eos are taken to minimize the recon entries atte end f the eae Earnings pee ‘Measurement (EPS) se ‘The Bank clues tsi eamings per share amounts for profit loss atibuubl oorinary equity holder ofthe parent entiy. Base earnings per Shari calclted by dividing prot or loss buble to oriry equity holders of the part entity (ihe mumerr bythe weighted average munber of ordinary shares outstanding (he denominator) during the pid ited EPS ‘The Bank calculates dled earings per sate amounts fo prof of los atibutale wo erin equity Holes ofthe parent enti. For he purpose of {alulating diated earnings per share, the Bank este proft olor sible o dina equ hoes of th arent enti, andthe weighed average rte of shares oustanding. forthe efecto al itive potential ordinary shares. Dilution of EP is not applicable or thse nancial teens 23 there mas no live potential odinay sates during the relevant periods. Hence no Dilted EPS hs been cleulsed.Consliated base EPS hs ls toe alee and presented in the same manner, Presentation ‘The Bark presents basi ad ied earings per in he salen of prof or los. The Bank posers basic and ited earnings pe hae with etal prominence fora prods presented. The Bank present basic and dist erings pe share, even ithe amourts ar egaive (8 alos pe share) Segment report ‘An operating segment is. component ofthe Ban that engage ia business activities om which st may eam revenues ang incr expenses and whose ‘pering results are reply fviowe bythe Bank’ ehe operating deiion make to make decisions abou resources ob allocated io he segment ha sii its performance, and for which dire faunal information i vale, The Bank repos sepately infomation about ech operating Segment tht hs been ented as an operating segment and excerds the guantittive resbols. 20sas 34 aaa Quancatve thresholds ‘Te Ban report separately inforiion shou sp operating Segment tht mows ey ofthe following quaiative thresholds is reported revenue ining both exteral customer and inter segment, 10 percent o moro the combined revenue, intra and exter, of al operating segmens. Fhe abolue amount ofits repre profit clas is 10 percent or more ofthe gener, in absolut amount, of) the combined reported profit ofa ‘psig segment tat didnot repo ots nd (i) the combined repre fot fl operating Segments that repo ls. sees ave 10 percent or more of he combined ase fal operating seamen ‘Operating spent that donot mee any of the quantitative threcols maybe considered eprable and separ ios, if Management believes that information about th segment woul! be wel ses ofthe Financial Statements vents fer the reporting period ‘AL material events ae the reporting period tht provide dito! information about the CompanesBank’ positon atthe balance shet date are felted in the financial tren spe AS 10 "Events afer the Reporting Period Events afl the repering period tha eno adjusting even are sloed in the notes when materi (Nae = 410) Risk management The Bank Companies Act 1991 a8 ametdd and the Bangladesh Bank Regulations our the Management to ensue effecive internal a, tna onuol and sk management factions of the Bank. The Management aso required 10 make a selassesment on the effectiveness of stand nema onl nd report to Bangladesh Bank on instances of rad and forgeries. The isk of «bank is defined asthe posi of ots, Srancil otherwise. The Risk Management of he Bank covers 6 (si) Coe Risk Ares of ‘Banking indsty ie Investment (Credit) Rsk, Foreign Exchange Risk, Ase-Liailty Management Risk, Preveton of Money Laundering Risk, Ineral Contol & Compliance Rik and Information & Communeton Technology Risk. The risk management procedures in the coe is areas ave ‘an devised in in wth he cove risk management guideline of Bngladeeh Bank. All the Risk Management Guidlines are perio reviewed by ‘he Bank and Bangladesh Bank pereicalynspcts the inplementaion sau of tee uialins and as per thereon of Bangladesh Bank, te Bank iswel compli in Core Risk Managemen actives, Inne with nseton of Sengades Bank, te Bank formed «Risk Management Wing MW) Formulae risk ssssment and management polis, Imebadoogies, guidlines and procedures for risk ierifstin, nick mesure, rsk monitoring deciding acceptable level of risk and risk anton Risk management fanction involves dentin, essing taking meting steps, prparing Risk Marageent Paper (RMP) conducting Imortly rok management meeting. sess tesing and reporng the competent autho fom tie to time. It also reports to Bangladesh Bank on {uarety Bss long wah the RNEP minutes of he mowtly mestng and lathe require supporting papers. Moreover, n compliance wih the “Bank Compnies Ac 1981 amended, Section 15 (Kha) od BRPD Cicular No 11 td 27 Octobe, 2013 of Bangladesh Bak, the Bank has consited ‘Risk Manapetent Commitee comprising of 5 (Bie) decors frm the Board 1o Formulae risk management polices, roedares and overs te rk ‘management sete ofthe Bank “The pine abectve ofthe Risk Managenest is thatthe Bok kes well calcunive Business Risk Policy for safeguarding the Bank's capital its ‘Tae esoaees ad proinbity rom varios risks In hi context, the Buk implerente alte gullies of Bangladesh Banka under Invernal Control and Compliance Operational loss may aie fom eos and fad due 1 ako internal control nd compliance, Wiha view o overcome such lapses and verification of Seat gay, ensure quality of customer seve, over security arengement, operational eficeney and compliance of reguliory ies a> guid though ifrnt ctl, manus ffom Head Offie and oter regulatory Boles Bank organizes its management through Intemal Convo & {Compliance Wing (CCW) which consists of thee Divisions saaly (1) Audit & Inspection Divison, (2) Compliance Division ad (3) Montoring Dinson Audit Inspection Division Internal Audi & Inspection Divison undertakes prod and special ait of Branches, Divisions and Departments of Head Ofc ofthe Bank, ts ‘Subir and Foundation to review operon eflectiveness and inal &exetal compliance requirement. The Bank bas invoduced Risk Base internal Ani and grading of he branehss The Aw Commie ofthe Board subsequently reviews the lises tented by Avi and inspection Divison The Audit Commit aso reviews Bangladesh Ban nepection Report and ober issues indicated in the uiines prescribes by Bangladesh Bank Necessity stpsmensres ae ake onthe bass of observations & suggestions af the Commits “The Au & Inspection Division eondct investigations aginst complains resived fom eusomers, anonymous persons, anageent& tes and brits the report fo the competent authority. Penida Inspection reports of Zonal Heads, Shariah inspections & Branch Manager's self Aut are ‘so reviewed bythe Division replat and ecesearypidance ard suggestions are iven with continuo folon-p thr gains Compliance Division “The Compliance Division handles the “relator issues of Bangladesh Bank as well other regulatory bodies’ and submits “sau eportonregusory Compliance quart othe Audi Commitee spor BRPD Cel No.12 dated 3.122002 “The Compliance Divison ensures that he Bank complies with ll regulon requirements while conducting is day today business The Compliance Dison mui ason with the elon bade foray egulatry changes ae not the sme tl oncemed “Meaitring Division ‘This Dison performs the following iy Assess ther f the Factions! eas ofthe Branches esrb in the Deparmenal Cntl Function Checklist (DCFCL) an determines te fRequncy of Auilaspecion nde sk Based approsh ofthe branches based on the gravity of as involved si) Monitors the Itemal Cnt Functions through the Quartety Options Report (QR) and oer mechanisms, ip Checks the completion exertion of lvestent Douentation. AFIOTE eusg Nt aaa nats 3246 Foreign Exchange Riss the eet or prospective risk o eamings snd capital asng om averse movements in cumeney exchange ies. The Banks apesed to profit ae isk and setlement risk on account of is ori exchange busines, Foreign Exchange business ineudes tang 9” frien omenees relating to impor, export, remitances an ober ancillry services. The Bank is deling wit 2 stbtatel volume of foreign Wade an ‘emtance business ofthe country which exposes the Bank to foreign exchange rk. The Ban has sdopted foreign exchange rik manu tough which ‘he frig exchange operon we deat with Foreign Exchange iss are measured and monitored bythe Treasury Division. Treasury Division onsets of sparse Fro Office, Back Office an Mid (Ofc. The Treasury Fon Ofice(Deling Room) independently performs the dels andthe Treasury Back Oc is esponsibie for verification of te ‘els and psig of thir ents in the books of acount The Foreign Exchange Ris s minimized though prope market analysis, real tine pricing of Foreign Exchange, fixation of dierent market elated ‘ims (yg, ovemigh, stop los and management ato gg) and couse pare cet iis set bythe management and ensue adherence tthe limits bythe Treasury Font Ofc. ll Foreign Exchange ansactons we ealud al weighted averge exchanger x provided by Bangladesh Bank atthe end of each month All Nosro Accoums are reconciled regula) and outstanding ene are reviewed by the management fr ‘clementrecompation The ope pasion maintained by the Bank at the end ofthe day remains within the stipulated init pesebed by the Bangladesh Bank Investment (Cred) Risk Management lnvestent (Credit risks one of the major rhs faced by the Bank. This can be described s potenti oss aising fom the flue of counter pry to ‘rform as pr contractual agreement with the Bank, The fire may result from uilingnessor inability ofthe counter putin charging he financial obligation Therefoe, Banks Investment (Cre) Risk Management actives have been designed toads ll thse aes The Bonk has ‘signed its own operational manuals foreach modes and products thas also designed its own invesiment ik management guideline whichis compte with the reultry guideline and ishmic modes of nance. Thre ls dedicated commitee namely "Investment Risk Management Commitee" which perodicly reviews te operons manus nd rik mandsenet guidelines and ensures compliance ofthe some Ase Llabity Management ‘The Asse Liability Commits (ALCO) ofthe Bank monies balance sheet sk, gut rss fvestment depot rai (IDR), depos mi, investment min, ap anasis ee under te ledership of MD & CEO ofthe Bank. Asst Liabity Commitee (ALCO) reviews laut quent ofthe Bank, ‘he maturiy of assets and ails, deposi and investnent pricing Suategy, sensitivity of assets end abies, management incieorraie snd the liu cooingerey plan. The primary objective ofthe ALCO is Liquidity managomen, Fund management an Asete-Liabliiesaching, The ‘ommiteealso monitors and avers sigacnt vlan Net Investment Inca (NI), nese vale and exchange earings. Prevention of Money Laundering Money Laundering skis defined as the los of eputaton and expenses inered as penalty fo being negligent in prevention of money lundering, For ‘wt the risks, the Bank bas formed 05 (ie) members Cental Compliance Unit (CCU) unde he leadership fhe Chie An Money Landen Compliance fies (CAMICO) at Head Office Art Money Laundering Compliance Units are lo functioning st Zonal Ofies and Braches, where ‘he tansctons of the accounts are inependeny reviewed o verify Sumpicos Transaction Report (STR). A Maal for prevention of money laundering was developed and approved bythe Bord af Directors Te bank ba nrodced (a) Uniform Account Opening Form (AOH,() Know Your Customer (KC) Profle and (6) ansaction Profle (TP) in the Bank a pr inaction of Bangladesh Bank. The Bank had ley issued 6 (sh) instruction circulars and 11 (leven) cecla levers providing necessary israions for Prevention of Money Laundering ativiies nd also for Combating of Financial Tesora. Moreover, the Bank had conducted a good nunber of ting Session'worshops o create awareness and development of he kil ofthe ofiil or ienifing suspicious tansazions The Bank iavoduced a Policy Caldlie wo combat teronit financing in the light of Anti Temoism Ast (Amendment Act, 2012 coupled withthe Money Laundering Prevention Act 2012 approved by the Bsr of Director ofthe Bak ‘The Bank has exclusively completed the KYC procedures of Legacy Aezouns accouts opened before 30 Api 2002). To estas frit Ani Money Laundering deve at branch level, the Bak inoduced AML Rating systems suchas excellent/godsatisaioryarginal trogh self Assessment Repo & Independent Testing Procedure a pe isrcton of Bangladesh Rank, Information and Communication Technology Risk Management The Bank his adequtelyadressed Infomation and Communication Technology (CT) Risk Management Ii an in-depth exreie and continu process. The ICT Risk Mangement exercise mainly includes minimizing final and image las o the ist inal events Sich 88 aaa ‘iste, technological fares, human eros ec. The Bank uses own developed Core Banking Software to perf al ype of tansactons icading Toca eine! inemet na seared way. To take car ofits core banking Syste, separate secarty module hs been incarported ia the sofware which manages dierent roles privileges for diferent were. Al Sani tansctins can be racked fr future uit purposes, “The Bank uses Cental Data Cent to replies transactions in branches in case of dua Flr inconsistencies. Data uaveling tough network uses enerpion and decryption mechanism. Inne withthe Bangladesh Bank ditsctves the Bank as approved is own ICT plies forts operations and services Under thee policy guidelines, & scury policy has lo osn worked out To abide by and adhere to wh ak ow in the ply, the implementation hasbeen mae hough Active Director Services (ADS), Password Policy, Kerberos Ply, Audit Policy, Group Policy, Use Rips, Permission Poiy ete. In order secure network resources fom pblc network, the Bank hs iazeduced Virtual Private Nework (VPN), Acess Conl List (ACL) IP fitenag and TCPIUDP service ‘locking trough router and oval devices It hae aleey centeaind the adminis cantol to aves the network, malin yom and internet The ‘Bak has intodoced Busines Connuty Plan (BCP) or its ene network and traned te ofclso cope up wth ny conigeeies. Internal ate Tera Audis used a an portant lament a ensure goad goverance af he Bank Inert Aut activi af the Bank fact and it provides senior management with a numberof imprint services These inclode detecting and preventing fa, testing ftmal contol, and monitoring ‘mplizce with own pices & procedures, pliable rls & regulations, aseuctons! guidlines of regulatory au During the yea 2018, Audit inspection Division of Intemal Conl & Compliance Wing conduct inspection onal of the Branches! Divisions of Head Ome ofthe Bank ad submited eps presenting the indings ofthe aus inspections, Necessary conto measures and corse ations ave been take on he suggestions or observations ade in hese reps The reports Key pots ofthe reports ave also been discussed inthe meetings of the Aadit Commits of the Bord and necessary seps hive ben taken according to the decison of the sid Commitee for core! fantoning of Internal Conols & Compliance,3248 Fr 326 40 1 and forgeries Fraud means wll evil deception intended vores in nancial r persona gain. twill ever be possible eimiat all aed and o system is Completely fn poo, since any fraudsters re bl o bypass convo stems put in place. The Bank coninuesy pays atestionosmplemen an Improve the en-au itera contol for preveston of rd and frgary. The Bank assess evaluates the effciveness of ts Aird Inert {Control messes on quarry basis spr tem ees mentioned in the preszribed checklist of Bangladesh Bank, During the ear 018, no cident of fraud has been detected by the Bank, ‘Cee ating report ‘Alpha Credit Rtg Limited was engaged ty the Bonk fr te purpose of rating the Bank since 2017 as pr Bangladesh Bank BRPD Circular No.6 dated 5 Sly 2006, Aha asigned AAA (Tile A) ing In the ong tm indents exceptionally song capaci) and ST-I in the shot em (highest cersny of timely repayment) othe Bank basi onthe nancial up to 31 December 217 Regul ‘Among oes, he Bank compli wit he egiement ofthe allowing cleus, rls and regulations 1) The Bank Companies Act, 1991 as amended 1b) The Companis Act, 194 {©)BRPD Creula No, 14 dated 25.06.2003 and “Guidelines fr sani Banking” sued by Bangladesh Bank trough BRPD Circular No. 15 dated p.12009 4) Oter ciel, ales nd regulations issued by Bangladesh Bank om time time ©) Te Seurtes nd Exchange Rules, 1987 ‘The Secures and Exchange Ordinance, 1969 4) The Seertios and Exchange Commision Act, 1993 1) Income Tax Ordinance, 1984 i) VAT Aa, 191 4) Standards fased by AAOIFL 1) The Stamp Ac-1899 1) Te Cxsoms Ae 1969 1m The Money Laundering Prevention Act, 2012 1) The Ant Terris (Amendment) Act, 2012 Compliance wth Financial Reporting Standard sappieable n Bangladesh “The Companies Bank compli, sper Para 12 of Secuis & Exchange Rule 1987, wth he following Ineratonal Accounting Standsds (AS) ah International Financial Reporting Standards (FRSS) at oped by The Insite of Chartered Accounts of Bangladesh (CAB) in preparing the financial staements ofthe Bark subject 0 departure described in ote-2 1, where we hae olloned Bangladesh Bank ulin SUNe [IERSNE. Tras Tie Campane Saas 7 [Fine option of eration Fanci Reporting Sands ‘Rot Apoiabe| 2 7 Share asad Pama Not Applicable 7 3 [Business Combinations Nor Applicable a Finsrnes Coma Nor Apleabie 5 $__[Non-surenAssets Tad Yor Sale and Discontinued Operations Tot Apleabie @ 5 [EspioatinforandEvauaton of Mineral Resourses ‘er Apieable 7 7 Financial srt: Dslonues Comlied 5 7 Operating Sepmens Conia 5 9 [inane aston Complid io TO | Consolidated Fancal Setsmers ‘Compl 7 1 Poin Amangemens or Appa @ Ta [Diehowure of interes ar ES ‘Conpisd B 13 [Far Vas Messen Complies i Ta [Regulatory dete accounts ot Appi 5 TS [Revenve om conrants wit €atomeT Compl aSuNe [TAS Ne TASTE Compliance Saas T 1 [Presentation of Fanci Saran Compled z 2 finwenores Net Appleabie 7 7 [Satement of Cask Flows Coma @ 3 [aseouning Policies, Congas Accounting Ente and Es Come 5 TO [Evens afer the Reporing Prod Conpied @ 12 [neon Taxes Compied 7 16 Proper, Pant aunt ‘Comp 7 17 [lees ‘Compe 3 19 [Frolov Beets Compe 70 "20 [Rezounng for Goverment rat and Disclosure f Goversiet Aas Tot Appia iT 7 Te Eos of Changes in Foreign Evchange Rates Conpied @ 23 [Borewing Coss Ter Appiabie 3 23 Reeted Party Discos Complad 17 726___[Aerouning and Repring by Retemen Benet Plans Tet Applied i 27 [Separate Financial Stamens Compe 16 “Be fnvesiments in Asean Tin Vestas Nec Apicabie 7 35 [Financial Reporing i iyprintanonary Eeonoies ‘Ne Apleable 1 [Financia sironents Presenaion Complea 3 3a [Barings Per Shae Cone 20 TH Ile Financia Roping Coupled a 36 [lmpalonent af Asses Comied a Fr Provisions, Congo ies nd Conga Aes Comp a 3 [nage Assets Comp EI 3 Fnaneial sium Rasgaion and Neasarenent Compl 3 ee Wat Appliaie Ey at__[Aasetre Not Appleable (©) Complied while the quarry and half-year interim ancl repos were prepare ring the yer as per epltons of Bangladesh Secures and Exchnge Commision SEC). m4a » a Ait committee "The Audit Commie fhe Board was duly fre bythe Boar of Director f the Barkin accordance with BRPD cur No.1, dtd 27 October 2013 of Bangacesh Bark: Pose: to ie BSEC nlicaion no, BSECCMRRCD 2006-1587207/Admin8O, dated 03 Jue 2018, on Corporate Governance, the ure cree i costiated wth te flowing Sve) members of ie Board S| Newer Member Sansa enon | SSIES] baretoatQuattndon [Rents 1 a a ‘apnea | Chines [Bi Go, cae |i Saat Vechimn enter Mee a +" Nia as DERA [Tagen Dw | Namie | Con irs con Scan eR DS 1 [oe Moke UA Die Mente mo [ee Die Tanber [RRS S 8 BSS (4 (or) mewtings were eld er eviowng the Financial Sateen oto tal 10 (en) meetings bald in the ear 2018. The Avi Commitee reviewed the Fc Statement of 2018 om 24 Api 2018. Rette party donors ‘Aspe AS 24 “Related Pry Disclosures" ela pty person or entity tht i sd tothe entity (Le. TBBL ht is repr fom stents Rel pany rasscton i's waar of resources, services. obigons Between Feporingeniy and eae por) repre of wheter» pie is charg a per AS 24, Rebied Paris inlade th Bank’ Diet, key maragement personel ssocns, companies under commen drsesip ee. per IAS 28 *Rebed Fars Disclosures” Allston vain relat pres asin in he oral couse of bases wre conducted a ar ng tarsal corer at on the ‘mers an condone hr party tenanctons sing valuation modes, admissible Lending ple for tranactos with Bank elated person ltd partes “Trasttos with Bank reed personel pats ncing Deir are made a per rues end replatns ofthe Bank Company Act 1991 1s amended {dos pe ciel ed by Bangladesh Bank met tine ean the owing gee ules ‘Terns & condos fr nancial transction wit bak elated pte pres wile ever tha ter persons i ote Invesnent et ior eprova om he maj of Boar of Distr shale requed foal nari ansctons wih bk reld personel paris. The Bank sl pot allow faned facies exceeding 10% of Tier capi wth Bank relied personae paris; rel venenatis sal be conser deducing encshable eure fom finde invest, The Name of Directors slong with all related Frms/ Compan lasttons/Pates: Ax at 31.12.2018 S]aeewatarOcor” [Saranac TDHF ConA PS] Rag tr Nama Pair ang ind ' Ino Chairman | Nutrition and Food Science, University of Dhaka Te vane) eam 7 Re Ns CTA RT| RRR I Ba i, a ET ACO 7 feta stata VoeGaim = “eB S| Crs nc aie Pata Do a ox reua tannins [Veneto Chtapre ng een sa — apg Ds & C5, BOT aa DT ic a Se — is taraioaTO [rs Ri Mgrs NDE CH FAN BAL nied a Speman — | RI 7 [Me Hell Ahmed oe |Professor Bangladesh Institute of Bank Management (BIBM) 7 Se Nae ar | Diese et Ge i onion Deh aT 5 [Ae cmon Dieta cbse a Tai De aly & nag DE, Pla 10 rotanror Ma Satin | Dimer ‘(pn ms I Sia FO ; i TT 1 fae Dine a a CFD Sr Co a Da 1 abi, FCA a eam ed 8 Ipnp Director [University of Dhaka. aC ame a DTT 14 fs Mi. Joyal Abedin Director emer . san Hs init Ng REC 15 pe nn Diner [oe Line Rs eae ae [sre emp beis Say an owen) 20050 7 , rma fin ded a an con aT 2 [aami Bank Capial) pyet-absidiry [Profit epins MTR cD IS “ee roi sO a 4 [Directors ofthe Back Director [Fees, TA/DA hotel fare nnd other expenses Acted (64 Other rated party dcosures 1 thes warn conracs of sigfancewhesin a ier has ners ube tay te ding the yer eae en of the yee. 2 tyesent rele pres tect a er element of etn 27 of Bak Company Ad 1991 as mended 5, Stet o Dietesand Executives witout consideration a excrisble a dssoun Ni “Lotter dtlnire ar nat applicable as require by BRPD Ciel No.1 dated 28 Jt 2003 and BRPD CiculrNo, 15 ded 09 November, 2008a 7324 19 10x ax cu in han Coon intad cing fori cen (Note. 71) Stns with Bagh Ha kr pet et) (eng fri cueney) (No. 72) Ca hand loctading foreign urreney) Belnce with Bangle Bank & agent banks cdg fort. (0) abece with Banas Bask {nial corey Infor oarency Sabot (ecw Soa ui get Bega Bay Tn fercgn cueney Sabon Tele) ‘Cash Reser Raqurement (CRB) & Statutory Lily Ral (SLR) ese?) cash Retr Requemcnt (CRE ad Stmaary Lily Rat SLR) have bee caked and manned in screw he Secon 25 & 3 of the Bak ‘Comyey Act 99s ancned w e ton ofBangeh Bunk Onder 172, re 36, ae (0) (Cash Reserve Requlrment (CHR) ‘The Cui Resene Reuirenet (RK of he ark was 50% of avenge ta demand nd ine iii ont ‘hy sm 13082018 po anges Back MPD Cha No! dtd Ape 2018. The eh see mained bye nk was in exces fhe oy Bane | —aeTTE I ‘ssossassot | oas2eassais stn eases ‘plement thoagoat te ye ken of Cab Reserve Requtement (CRE) Regul CR (550% of everg total in ademas & 6 0% in hey 2017) Pcl eee eld wth Bangladesh Ban nol tren (Nae 72) Facelaborta. + Len api TT esouming fst of T2800 has ot ben consid 8 CR, Satry Lily Ra (SLR) The rue of Sansory Ligiy Rat (SLR) of te Bank wat 550% 0 ly bss excang CRR wherein te excess CR ut shal be sed wie ‘lng SUR fom 01022004 spr DOS Clea No, de 19 my 2014, Tae sere moni bythe Bask we in exes of he ty equ ‘ought te yar. Pasko Saar Liga Ratio (SLR) Read Ree (5% of mgs ta ne ad demand aise) ‘tal eerve manned (Note 3.21) xeesahortal) ‘Compeneat of Stator Liguy Ratio SL) ‘Cashin ed iting frig carey (Note 7.) freer GRR snore Note 73.1), Bice wih Som ankas Agent Bank of 8 (Not272) aluns wih ans Renan Fund Ae (Not9) ‘Unencombered approved securities: ‘Banga tiring Corporation (Noe 10.1) Bold Goverment na Ievestne Bond (Net ‘Tota Contd cash hand Cashin band cating fort carrene) ‘non Bark Banged [om ask Secures Lid [sa Bank Copia! Management Lied Baance with Bangladesh Bank aga bank) (cudig fore arene) [la Bank Regis Lined {so Bank Secures Lined {sam BarCap Marogenct ind Sabeotl Four) aia Taaigaieast | Tassie stowavesa | osamasessi fash l0sot SRD SS TSE | aan 30300 2145706 Tage stair —TaSERSS A ‘Sint pares) BST ea MEAT 1] asses SSA 7 Sat aes Bisiasesa oa ToesT chy bass wih proviso of minima $00% on aw Tsao] — Se ssasea7 | _ eesnssioss ei ae [TT amesrens ease ‘sasarsgoa | 1sasiaasals Shasaisot |) "2eongos¢ sro 104,508.00 [___szo00n00__sean0000,000 Seam 7 OGRE TARGET Tae Te, SENTERO] ars See pe TT“ “ aK sox Balance wth ter baa & ancl eats ogee (Ons tae wth recur vn, IBBL (Nete2.0 OB) Te Mec sving 8 MR sss wih te sue Det facia ntaons [i OBL tlc wih ey ison BBL Saba OvtsdeBargtadek Note) I Mirae sring & MTR scout wih theistic ass flanslintons Sabot (Gea otal 8) Coren amount a exchange rt of Balance with ther aks & foncial latons aude Bangladesh ERT saa ‘Take ‘Tan Fase TT Berean 163936 sowiso0] _s.ussiay7 see sare Soars TEW2899 ah idl emma aa aia sass Fora carrey Aaowaila Fachaage ae [sua Siem [Soar SINAIH a0 “aaa | — 10m [retin Foon Sissuise Toa0s 3382505 Tala Sapa a8 2236 EAS e322 Ro Tapani si Ton.ioaser | ——anowsis RN TSR a7 ToT 357087 Cen Dar TB aise 25807 | [wie STi was apn51 Tans [nse Dar Tsao, oe sar Torre [slan Doar - [act Dale Tso od waaasie EG [ae SIS me 6 Tiras eo Graeme | Taerissor Matarity- we clasieton Haan ih other banks & ae nsttoas Repay on mand TREE | TENOR] ‘Wiha rela! matey of Up Non soaenana | «rmonno00 (her ah are than 3 mont ssossooineo | 28165000000 ‘rer ont not or i year ‘ao ac0.200 ‘10000000 (rer yerbat ot more aS ets Meret ye ‘out ee ‘Conelidte alc withthe bans ani iatains aniston Ie Dek Dil Lid TSS] aaa [ls Bane Suse ined ssnscoses | “arucssazee ‘Bak Copal Manaeen nite Ssoa4304 5237361 Inecreonpny bes custo] o.esingiy Subtal) COntsde Ranges ae Bask Bande Lined {ie Bk Soares Lite as Bark Capel Management Lied Sabo) ‘To ooi) acon ith banks & ther fnancalintatins xonet © OBL by Teta Divo, BBL (ote _OBU) eet © AD Dances x MBB i FCby ODU St°3.0, OBL) Pheoeat ne Refine and Acoust") Les Pasement OBU by Tres Dison BBL [as cement eA Brn for MDI FC by OBL Bema W365 78.090 SFR] FTESST raga —Eaaper hiss aes [—aeaorerry roe) ‘ekionas | s2isees | tei al Te 5 in| Eee 900 E Sa TT BOTT] HOUTEN % Pa [Urston starts Unt rnd sot Bowomreoo| desoooaeo my {Simeiwa) ea (Skratch in som ‘Soleo oo 00| aon a0 oo feineata “yet Att ne Mort fuea | 153,79 ‘eagasesca) esa 30809 ‘iostan] — ueiSte (sop sha. an Bane ‘Sgosgsoao|_ "sy etatco “eulee| Undies ete a TL tes oon aa aise [aces Seeded Det canta 1200 19mom|—.20n000000] 1.200000 ecu Maa Sterates be ate Seen De | snow] s00to0en0 | son0mnon ect stead Dk Soe pecan 2x0} _snomom| —_2a00anaa00| 20000000 aque isoner = 3 eal : IS Aes Maan 7 ‘goonsKa| — Ue [Deseo Portia Maren | roans9e5 carts) age ren Teno 1 ‘is200] Dede ane stems i ‘S| aesroionn| as 0n0 Undue san ” “dowaown) "130000 e090) “Danes Fat oy i Bak Let % ‘isrrsea| ‘4720000 wor] Qases [Soca a La is issean| —_tazne0 po Inte Fin Cher La 4 ahievard] ana aussie] Gonee Int 3 Rasen] ‘ssv0s91 GSioito] Gone IReMeLAD ia mhomate| —6bs0004 cieesro} Se [ABN retro 0 sono] “sgn oO] aot [arc Ase 2 sespoae] — szisea caning} Sane la % envs] —“Tantaty Sd larexeoor se ieatou] — Ssaasre toed pote i Steers] Sazzseo Sed aka Bert % sSazaste| road Steed let fd 64360] sea Owed [ATA Soe as aroom] 25a. Outed is 2 Srosou] ose Sone [ein Pharma 1% ‘vowgona] 34008 Sones lscct, in ‘Bea ea] “2320000 Sones state: 2 somo] ozone (0283) Oaoes enn Comet vo] Samsara] anaaaans Starman] Saad fs os 3 Sraersor| — 33as80r0 301339) anes ect & ‘aenoo] Yas. 2] Sat ftom 8 assem] ase asi] Oe ise Sis} tatones| sa to GRs5] Steet sent “ouaso| “uae Sed \eemexe te oman) ayes Sees Miherg Camere ss| Bony] aaannae Smet lee 5 28r aia Sone Itnaco fa El rs Sete iad Ae % asseani] se Gis] Samet ire % ‘eran| —2seseo Scat] Ged ata Tener 3 fooso] denon imei} med Iva 2s] sezuteoo) gered aszerivo} — Suoet ine Bago id va er iseeoe (e300) Sine ibe : ss 30399 | Sued Pang td ut nse sean) Sines a 2 ‘arene Sao) Se op nd ais 302} Saar] Gooet [ects id 2 22081 But) Guoed iaroere 3 sea cates] Owed Ivara 0 i920 ‘say ] Game fin 4 ont a e235 | Sates Iscras > Ee) 406300] Se sec nt 388402 simian) Sad Se ex ‘3 2900723 mos) Sune ISS % ‘a4sro Outed Sat poet 8 oaesey 100] Bones taping at % Shore B3eion| Oo \orere ° eas ‘ogee | Seat _—_| roa = aman | aint Ta = Kal Other TT CONTIN | gr 257618 : ‘9,507,016,888 | 9,265,641,340 24,375,547] Helrery TIT =} rasa ae ISSO Ins tenes aE oo Recta] Pei | watconrie | matt vane | Cee in ts a = enna am] | See) aoe a free eee | | aS) aes] a :| ss funn 2a si .| ss Sees sant Ree eee : ceciacaen ee = Lecco, | “oer| ios| “ooel “Seams ae) atl ee = ore i Re ome a amen ramet — mcm] oes Scenes | Sme] | imeno| saunas oe Esmee: | Sees] = 5) ies] Saas :| os Kicemrcetart ns | ome] | ARIES) Bisa] ease] ek femtiieciromt | ane) eine cee] deae| sage es — Sk — a th} a eee [First Security Isiami Bank (Ist) 7 " 100,000,000 ned fessrnmemeen ae al aoe : BSieimesber ] x0] yoni | tannin) sao wnt etapa cSt] yg | sangoo| anon | _anandon = | vce jlo Tin 7,7, 050,060 | 7,700,000, 000- = ae crest FREE ee eae ae] cs Bosman es fen eae ria] pea Rees | ali 2aSt88) agaonn noes fear 8 qm] sia| ST ee | eee comes) ages | Beal ls is aes peed (ase a thes) Geel Se fee ae eee) = ta) oe ee an aes a ba ed ings Be Bee a see) mie] tania) Se — ee fes| Baas man) ed bee me tee | beac) git a ae Sere) ieee) gk) Ree Pita as sen | eee) =| Se Feehan it va) “eee| =a] es | Eien ue ie| eee) GR a ae Hee) Bae] ES) Le oa He) ate) as] Ss ea ue ae | eran is eae] ot) Se eee Re sees] | Be Leen oe ae rsa cers ba 23 ie) = Ga] ee be ae ae Be) ce — ee aos] on] SS Pestana 8 gee) a Fe ae ; 28) sa teen a es] oats) Eee ra sees) it) Ee eee Be sess) EM) Se ee ee po er ed —— oe Bane) GBR) SS et es | “ues Go| | Eee ee aS eae) ke] Geren ups eee atte ee | haemo eae aE hn sr ping Sin rho igh ‘Sn ret ee Sa rea aoe" ern Wn stoi eather MS rein nme nv een st mis sn eS eto cs 3 aw se say gg ttm ti ia cal ipa a ermea wages] as Sey eometerm ese] Ne eens soni Moreen S38 You s9, mas inven str ent Sl Bent ogi Lint ‘les Bark Sores iid lS an Copia Marae Lined {ter compasy basse Sabet et) Others I Bank angen Line "em Bek Scie Lane 1 ik mene Lines Sabot Toute) (Gl ese oe. Not 1.0) Batepuchaed diced oie) Bsi-Manat Fire Prine under Stal Mek Fire Prose der Stitt Mek (HPSM in FC-OBU) Bainter ils Bein FC ie Muara ‘Mort orsign Cen vesmet ua estat in Kia Card) Several 1 Outside Hamad Bai -Murba| ie Parte under Stl Mk Maurie Ovens evestent nS unt Oe Sabot) Grand tt 8) TL Matas cassieton Repeat on demand ‘Wis reside! matey Upto Mont (er bat ot more hs 3 most ‘er Sm tu at more a ye ‘her yee ton mere 8 ets 11.3) Conde general investments 112 Bl porated & aconted Dia Baegade Masten Bil (MDB) 1) Owe Baupades tab Doc al (UPAS}-OBU Bakar ur FOB) Moa nF Sebel) Tora) 1121 Materip-nit caieaton oils purchased & dconted Pyle ia ah ‘vr ah ute then 3 months rer noe et tha mots nat re 1136) Conttdted is pareased & diconted Fem Bea Begs Li ‘hi Berk Sse ied ‘la ant Crp Maragenet iid Toa 13 Grorapel cation ie la Sih Bangladesh Iprleat Touran aes TERT STEROT [—iitkarroy asso] SSE TRTUSSeE] ——TRETTT asestase | 7947 generrito) _qesnrcon ae — ae (Tages ae) Gamma |_ paseo Re ERTS | TTT sugotisssit | deas7abt sol resaseasziie | isssanesaats taomaosis9 | 13s8ses902 Sactasoain | 3787068477 Samscaaso | 13230760398 ‘SIOA6LI7¢ ‘sins «ronson | smomrso00 wor273313] 1047151297 iarsraseses | 13s7omrale 21814633 vel 93396728 Dai 957183 ints egos STII ee eee angonarrais | 1094s2s3sss0 Irstasanoes | 11391623506 Iessooassans | 1s94ss28610 Isoasiasoan | 131aTea0so44 158595 731909) 124at1,44s0 Tei Ne SDL TEER | — WORSE 2v90300 000.0000 Baas apisangn 540908657 [Sis] ae] ateragos | 300347388 duaiorion| S250 8S. 188 Sess siRSe aie pst, S196 69 TSAATSER | —TOSOTATT SS Heastasiong | tstoas2133 ‘paca rase | ‘8501310758 Gasiaenens| _ esosmasis it aes TRATES] — RTT ns [ase] —atorsaisss7) sasumean | egsissui017| Has STEAE — TTR a114 Dison we lasieation of vestments (*) [as ar Name athe avon ‘Taka Tas Dest dion Nase | HRA TS Chien dria insmsiigea | teoastesize? onion ‘sasrsiaes] | ‘akosossi 373 sje sion Grasiaiees | Ghetbrst2st arial ovioe aamsstan | n9ee3e82s9 Sythe dision samriate | tangas Raegar dion reommasss | 2anssi2s Meningie LL isigtani | tosai sear Teal ORGRGTATTS se (Divison wise tiation ws mde oe the bss ofthe lao ofthe rapt mck ot one if whee he ens uses atm ete 115 uvestment on the bao epiennt concentration Iiebuding bls prchaed and dicoened _ meet chet excetie& te Sexo executives samgnrsos | tor339s200 Stor ise other vestments: Tine & commerce aaeqnau | arzoreuis2s Reese saassss2 | 50625360885 Tp Buezoaeioo | eae Mao86 ‘Ane lig einer & cure inpenents) snusmaod | rasan {nani iverens (Mae 10 5.1) sistas. | sep 305328 Ober sisriaenst | “sesor00 oul Bas0 r66_ Tar 154 Chtiesin ina Investents ‘Fate phaing woneng jeg TERT] Tasso amen amar pcesiones ‘oaosaieses | ssi 976 ‘Seo rerlng eager deimaiean | dns7iasoo% ‘Agere ini dhaseoiege | Sr2e13616 Food tevenge nasa | “9aan7ss950 Comers inty aasseesso | 9358328120 Plamaceuenle Soucnssn | Geasisosrs oly, pouty fed cry adossaoent | Daszsnt ass Sentry re ‘391039 Ist 9s6306 (hei ee & peleum sosnoiseia| 49960790 Pestng & pckogn Gases | eases Power (oesg) tarrangest | S40ner a6 Cen & ke rossteeaas | Soames ecard) soon | Sase205888 Pinte iter Enssesons | onezoass esl pop CNG Sling sion ws i46 95 9,068,595 Infrmaton chology 261068359 drtenion cl resturant somata oom ter indies sessions: | e2s7iserars at 196 _— Sun 988 16 Dents fiaventnent to catmers aro (10.00% o regulatory eat and above) umber of cles ith ung of nctned nt of investments exces 1000% of tal ear ety ofthe Bank & ceil amount eon ae gen alow Sua [sao] mer of ts i 7m ous fermen resereonmon | 124395960000 Ged amet ere NI Ni Nenu then fr resovery NowApabe | Noe appicbie “ol ep cpl fh ask wus T6918 lion a 31 Dene 2018 & Th 5798808 rin a3 Deeb 2017, — Taka ie millon) fa ne Name of eat encod aed = oe FEE 312307 i Name of c Funded [Nomina Toa 1 [aera Gp Tso S200 55 Sz7a00 3a 3 [Som Vepeable OTL 15.0000 79100 01.00 159500 7036] [Sli Sipr Eble OM LL 13000 37800 aT300 15 751.00 T2019 [SA Si Reine STE Tan 7.38200 S00 132330 T9100 5 rors Gop Tao sor T1300 529900] ASL ions Gop T2600 auoo[ 49200 Ti. T1300. uss oop 1395.00 753900 “77000 12.8.9 985531 1 [Ssbensra Gap T1050 ese7o0| 20000 155700 Esl. ators Rein’ Yau ap 36010 ‘Seo ie. 68.00 apis] TO [ssi thers Group 311600 780 ia 905.20 15300] ii ios Cane ar TA ae 7652.0 “160 71.00 7399.00 1 an Ty Ror Das Gy 7900 astor[ ——‘xa100 730000 1 [Ass Gro 0300 50000 33.00 Tosi cama TEA Bl Caps Grp and Dain Gap i000 39100 51600 "070 ‘9 TE ]MSK Grp 737000 635200 TrE200] as. 5 Te [sin Gr 732300 E5430 50.0 7503.0 1857 1 |oesanot & Bstes Gap : 2.5 |B Gp 2390.0) 19 [ons compote Rang Ta GS Gro zi neo Ti [ana Ct rs Andi sister = : S3ssar 31 [bai Gri zs 15046 ABI crow 5 Lasse Tar Tse Tease Tiss® ” ” ms ns a a iy » ” Sy a “iy % ” » » » 2 o ° ns Chasteaton sates se avestments Sey Ta acti “Take ‘Tan ‘eli ning safest aes | Srosencoore Special mention cunt (SA) ‘sdosesmioss | __“aeisnasssrs ‘Tonal Go). FIRS eAL. sas TOSS. tested Sted TATERS | TATE Dont assests | igonsssas8 Badan toes regimes | avomess7 "otal lia (ior) S16 354525087 Grand oa (1109) Boss egle. Ta Pledge collaterals aga tevesiments and & lng TSE] TT NETDR, sees, WSseroonao) — sa2sse082 Star ees 700988, 7700720 Toul Tamara oo — TSE Patclars of averted avert conse pod espet of hich ie anki ily secur TA GTERG TT | TRE TSATE Investments coneedpodin eget of which ie Ek ks tow penn seri 2a19578s rises Invent conieed pod an esl by ern eur of ber moe persons in aio to perl augnisaaee| signs seer of brs [treats conrad or debe ot rove fe - Tou BEE Toros Trin du by decor or emplaees ofthe tk or ay of ten de every or ty with ny abe" 25636987939 2261368505 Tevet de by Sve or employes of the bnk ae ners tects, pres, margin B80 ik theca of arts conomaes s members {T6aTSSn ovement adng teenporn ese, made any tne ding the year © cos or sonsasase inpyes fhe an or nyo hem eer every ony with ry at errs ‘Fon mowat einen, ncdng enporayivestents rated rig he ye th Comps rie in “tick tbe dso of be bak re trond set, pare manag ges of, i th ae oF ae anigs1s (motes ete tremens de os oer barks . {Cisse esment ow wich ras not ee charg rime 21010670657 1 Proviso foresee vestnens awoasness 24746520000 {Provan kept apt invests cased as bed & ss assis 2az22s15306 el omen ape Mateooass —Tassosaate Cnuatv mount invest itn off sce sept St Decent yer TORS] ORTETOT ‘amos of iventont ten of rng year 307611088 “Total amount wren OM (et) 12,67, 903201 ae ‘not rst np writen fnvesient up sya (*) Tana So 1a8408 067 ‘mount wae aga writen fF ivesnet uo is Yer ‘620130 550119 ‘Amesat olavestment writen of aga which suit sen kd to recover he a ress ease (2) Desig he yea of 201, Th. 6346, 00- a rcveed fo write-off neem, ct of whch sum of T2556, 14-wos waved an remiing SRST AST war covered ome tes inch Information about etracared investment per Banglaerh Baa RPO Cirle No ated 29 Jamar, 2015 Invest snounng © TAF lion (ost T. 3.17.70 milion on 3.122018) of 2 (0) vestments Abd Mone Sup Rely Lid, [Enstontce i) nun Fccvols Lid, Gln, Da ve been sett. Toe rected have ben mde yeni of ay of term nese Cee Rip tah soso paid fr Ab Move Sap Refiy La nd 126) yeas lig Ion) ye station peso or oman estos, re esate ef BRPD Cara ot ded 29 Tana, 2015 The ran of te Lvesinets we uncaifled and ere as Special Memon Account (SMA) oper Boldeh Ban Gatines Fuad metnctaingprembes(Anneare-) Tange assets Ut TRESS | TTS Paling esos] esses Corn cai wakes ‘onto sa face nireassase | igeaaere ect! pines Zonwan | 2917s Cont Tssiatease | sons Nor eicks Limronom | toteasoses kine tosizesan | "Staseao0 ios ‘Suan sor ‘Telcos of tangible act ncning revaluation Tag ea —— TMA Tir accom aspeeston eSatsogsne—— Somborne? Netbook leona seta be eb of hear ESE Eh 15,090,007 ‘Computer software ‘etn of atmpbe aes ee 5 asisn.994 Ue Accuited oration S990 Serer Nev book va fname ses tthe od of te ye 1s 65K 07 Tout wt eave atthe oof the yer (2.16123) agate ATS toe how Orr nh ate 3 ts Orr} mont ror rea Yn nazi] maseate nytt ee a ea again | ssuinsy Stn yea Gonsmine| _nimouss To TS MaATSS Sars 62A Revaluation ond balng [hs per Benger Bank BCD Cir Letter No, 12 & 18 dts Ap 2,193; ene 15, 19; BRPD Cia N00 dtd Noveiber 2, 2; No 0D aia pete tno un coculr No 2 det 3 Ang 210 te Bk reve ln and ng by he rofl value fr te yea 200, 2002, 200, 30,205,200, 2009 2012 especie which as eviedy he stay aor, 1249) Conlin inclines (Annexe) a rr 0 Tange nseas ‘na Dank Bade ini TSRHASORTS | TS aOTDTOOT "sa Bak Scares Lined 1563315 sma ‘as ak Capital Mangement Lied Seton —— Ee 02 Intangible amet har Bank Engle iid TERT HTT ‘sa Bank Secures ino ‘nam Bank Capit Manageet Lied Satta aa Toad d2attita2) Teor ‘NTacome generating other sets : {New nome paertng rast: ‘Sosofsadoery hand Tea ‘Stamps a hand age90k faves et pad SossHast esate Secu depons cru "sos 26 24280378 Spee Lssson 0 rs2a208 ‘Renace ast expenses “138931 Sah 123 PremidenperO8U Issn sie janes ‘sre some 133860 ainasest? {TS Genel aco (Note- 133) saisaiss | saso2uiast Cling sjsines 17338805 ‘Tamer Dever asm mse FC crn asst vata ‘ncesn Sen Ac ped ‘assare ‘Dyed lace Reshble Banas ael7s9910 [AIM Reset 3.90500 sie2sat | Saba) Bess _——-asosn2ate Fou) Signi esennaae 13 Matus casein Repeat on ee aa] ‘ih areidel mately of | Upto Moni rst6st46He ows 9st (er tt bt etn 3 oats Sitisass | 336.4790 (ver sth tut more a ye Tepeiaoqae | 12isiso370 ‘et erat ont ere tS ye ‘ropa ‘nsnaais More on Sour Lister ianassan. Tota ae 132 Chaieation satan other sets taued SEIDEN] snes Dost soasn7e 24587595 Bad Las soe 9300808 Tout ne ae 133. 18 Gecera secouat 1:44 Uesecoced efi later branch tranacioes ie Bangaesh Age (—Nember Tas in Taka [Kivaunt io Taka) Sete amen mnt > | = ee ee re : cee aaa aaa ecto meee) aa eae iar] “a Es gee ae eee ee cer ee spa so ang i ree aaa oe Peay ab wecis fen OBU for MDD PCTNee20_O8U) {_Seitonios | “Sarsaenens ad seated a Fetter ti aL am aint — tee Cer gre aetna S Ha ee ‘Fund opine rom OBU for verte MDB in FC by AD rch sh der "Cover fn MD invest dere bist AD ranches whe cae ed ea mat fr MDB in FC shown anderen wth tes ote ancl ination ate aes sie mt OBUs ble siete ‘nue lr nt aus mesa we fly ented whe preparing the ari sent of he Bank wla Me) 180 erring rom AbroaOBU Scoune GC ar. Mant: ‘iu Dab Bane UAE {CIC Bene Saat CIC Bae Hoes Koar ar Alsi ‘Etats lami Bane UAE Tora Dereon fom Exe Le Bana Asis | ‘pot Comer Bask Li aba Bek Dosa Ba i dln a id ‘Toa Borrowing (om Banglades Haak Bangnders Govern en Iavesmen ood (8B) ‘Consoidted placement rom baie & the Gane atains ‘son ark Bangles ned ‘so Bark Sits Led se Bank Copal Manage Lined Dep oer agcouts Mitra sings depots ote.) Matra co pis Dermat pots (Note 152) ‘Av wade cue a eter deposit accounts Note153) Binnie Nae15 4) ‘Madara Savage Depots “Matar eins Deposits Modan Sains Depsts (RDS) ‘Madara Sings Depot (RDS-RIP) Madara Scoa Suet Savings AC Malate Famer Sens AC Mor dy Empoyee Seving NC Other madarabadeposts ute peat Notes Depts Masa Depots Modarabe NEB Svigs Bon Mantras Speci Sevag (Psion) Deposits rb Mealy Pro Depot Shem otabe Miso Sains ut Wag Cash Deposit ‘Musa Ueda Deposit Scheme Mada Dept Manta FE Depot -Fxpeers Rtron Quo (RQ) oa [A Wadeeh erent and oer epost accouuts Wada Cet Dees Convert Tain Account ‘Non Reet inet Tok Acoun Now Renee Ff txchage Howe Banks ‘Noe Reslew Poot Exchange House Bunk OBL (Note-20 OBC) Now Resides Taka Acoust, Forign Coney Dept Frsgn Creey Dept ERO (er FC Depot Fg Cureney: Seu Deposit Ferg Carery Hl pis Back Baek UC Foreign Curency eld apt Cash UC Foreign Dotan Dr TT Paya Furcpn Carensy Dept pnt Frei Bank Gana Resse Foreign Cure) Dest Profit Pie Sindy Deon (Noe 153.1) Fe Denon of PZ Emeric Mable WebetAC {Lesson Resident FC of Exchange House Bank-OBU Er aa ‘Tate ‘Taxa Tecespogay | To a8 gor SSscoonom | —¢aso00000 ‘waasnisa | &te.30000 sascano000 “ sssoia.o2| 902100000 = |__zosnsrssat ease via ‘so.pmo00 ‘1999000 sr.900000| 12stso0m00| “9.000 TERR] Tae | | Ce BIDET FALSE aS TRE | —aawa To prsiosssoos0 | sainauaass iaeanraeanst | IreBo7s8066 ‘pisoslases | “TRazieass awe | "easoan. 7 ses ees TARO HATS | — Ba aA “aosanooss | aot m2aT fentes “is rsegmages | 120. 169116 Linggon | owns 6.3108 Taos UENO, TOSI [ina re] Sarees | 29nasens wezigasesse | 1sse4szzse sian susan? owsaseses | unsso36a7 lannaans9s | 21302485535 ‘woo caspsraot Sn3st8 ‘oat ara 19880 nasa | teaonse9s0 010300, "oan, Te ns rao. BROT | —aTSSOSCTE ish 1s1708 waster naa omasses| 120208459 Serena Trasonee ramose | 259820556 Tonsiaaz2 16919200 p3er sos 38936950 aes pao 4785688125, auaaneane Saniaaaoe Wna08338 Thao S3s00553 S013 o °° raasesossmi | 1236796936 Sonase m4) ares 82703 2a, asas Bags SALT ss sen see as1540 Breseap of sundry deposits Sunt ros Sipe tree ‘Seer epost 1G Secuny vey payable Sccusiy mney eker Marga epost Sink pare Closed acum rt Suey depot ters Gove mek VAT Sco Dept eveatnen Security Deposit UC (Wes) Scary Deposit Forig LC Gene ‘Suny epost Bank Guaraee Seay oper Foes Bl Notion (FENY MDB. Seeariy Deposit ‘Seay Deport nid 1C RDS (IP) Now levestnent some Afsaent her eames (806153.11) Breseap ofthe eartags Opening alae Reseed fom B Bask FClering A Received rom fen orespondentaks "oral ep rig te year ‘Travelon comet provision @ 370% “Trae os fr chara ainien Clsiag balan payable P0.pable TT. ple DD. pac Fe bi pple BEFIN A RIGS EFT payee Shorea pyc Maturity it aston of depose ther Chan ter-aak dpe) Repuytioen meat ‘Wi endl matey of Re: paabeit |nth ‘er hat ne 3 ats ‘hr meth br wit 6 non ver 6 moots bt mt mee ha | yar ve | year burnt more tn 3085 ver Jar ut wn 1 yeas (reisind Dept fr 10 ears ore atu erenping otras epost ae asunder Repuybison send ‘hth resdaal maturity of Re-pyale wia ct Ort noah bt in 6 mons ‘Gre mon barat mare an ea Ore I yar bunt more tn yen rer Syerebt hn 103ea8 Sebeut Tol 1884186) ‘Other bars depos wih BBL Aas Cet Depts Matar Special Nace Deposits Matta Sevings Assan Sector wie Breakup of depose and other acon rank depot te puic Feengncueney ‘Conskated dept & othe aecoumts {sr Bank Bangers Lined ‘Sr en Scuies ied {nam ane Capa Maropenet Linked Toul (aT) Tao DSHS mist rsa on 392308, Bsaenes 750480 o0e60.237| x02 aa 638 2415306 ssoimese2 9Ha10 “9126951 aasersais| 225867208 ‘264ss ‘sane oases eumamos | sgns66ae0 Tinanass | tomssar Stosn aoa tess lass sagsa07 sao. Ss00076 22301900 335s gsi1sst Peso, 4 [ty] ar] 1st esas Te rar Ses aa sae TOS ase ovomi0 Sa ues TRISTD] Sea ‘1918 ‘som 0069536 ous ‘ashzie ‘se ataass 139330302, 1300855, a w8 THERETO] STRAIT sosmosasre | sonsers3s.i6 osansaaz0 | 1377002080, fepesaeesre | ‘eowun744320 oosoasssie | ioasisatnas? Haassai2e6 | assaq27373 Toaarserigs | T2021 4927 mo 201839 HawEs aS sesaeson |] Lo10.s08036 aaa pases es — anaes TENE] EERE] Trae | mouse aise — ae [rears] rarer] ‘oases | inoaweae 2a | ittnancre wBhiuen | Sentosa russes | reancassoss EELS sna [ag] ET) 107954 T0354Ea aa 169 Madaraba Bond [ei Taapae —apoahor arb ep Bon) Sponoun {3000000 Murat Redeem Ssberdhacd Bond (Noe-16.1) s2oogmogn | __ someon (Sar ledge grt Mab Paetal Boné (PB) 4499100600, 100000 161 Masnaba Redeemable Sberdeted Bood Prue pce Nomi Tz ponTDORAT | ——SRTHNTRT Pb Surin a i pana seettay RL —— a xh Ben Darah Ea oansonaoo | —— ToT ‘gal Bak moons] 101000000 bal Bank Uk eroota | .ae0o00.00 ‘Sha a Bank a ecoeeoeeo | pmom00 opal ice ‘00500 ‘So Bu "00600 ‘Stat Bk i Ssenteo.tan Dale Bk ie So,0 0 er so 179 ome tabiies Provo isi & salads fb setae (Nate 7.1) TMT | — TSAO Proven fr dniaeon nan fees atres Nete- 172) suai sesrnsie Otero (Noe 173) versa spaassant opereton cout e175) ainamass| — 12soeiee Prot et compereionmopese (Note 17.8) cootass | meas st8 Coneatax oe Samoeon | Tissot {atte oe 7) fonstoans | 194ss075 | ecg conespndes hares 1206 40 1098925 Inorive bor ee uaa | isiassaor Poa epint erie Teasenset | "201381003 Frye apt exec - ceive Goal Benen) "stonneeo | saon0 Ging SSDs “rer te set 15000 BEFTN etme nags2.o2 s31030 Pet Beale Fund, OF & SAP "00260 6500 Deters teamed Ane Commision 7 : Fe: rnb A IBBL Tre Card aasnou ss9960 Fe rye IB Ha Car tear ‘ana Fe: Pn A IBL Crt Cad soe ann Var Pontie asm mass Baur acount Nae 179 Oxert) sexsi] _mas1597 Tot Basses Bsa (2) hls sour fT 15.00.00 as een hp facet Gao Borrower as pr Bans Beak BRP Ciel ater 03, ned 16 ‘ebay Sie fore er 201 tb onal aus wa oie inte Ya 20162017 £218 {00 NPS dp 140,03, RTGS EFT at TO0,00, Sst Ca Asses Tete) TA), 6, Yaatonaismet AT 108 Cee acnge T1140 nd Pton Steet T2035 cn Obes 174 rovon fr se & acai ivetments af bala set es Conor pei ements ext BU TAI] ABT ‘Unto imetents-OBU ‘soem | aso100% Sec meno nxt cesamona| __2tstsans Stet oe. Tpieasi.sa a9 (fF baa she ms (ete17.12) Tanna L970, 00 Sasol (Gener! persion) assist eis Specin prvion ote1713) Stbsuodd Te | RT Daan isin | zaounes Palen) msec | 2a38sa6 Senta Spite proviso) sesso 2 ‘ot prvi bed at th adhe ear ait se ngoe (Aa en 31Daconber 2018 proven of Te. 174414 nlion ast Ande Shipard& Spy Lk rt ent rschehed lens &resracare ls isi dinate pigmented te psi provision (Bad & Les) of 27.43.43 ilo opts 2422239 milion a 093 December 2017 “Aéquate rovsion forthe vestments efbtance Shes tens ad ether ase have ben mada per the eleanor ed by Bogle Bon wal eer sere anorgstBaglaiesh Bank ection Toon. Eater! dirs ad the Manages of imi Bank engladesk Lm end ‘Shinuen Bogle Bank Ltr NoDBIA2/209-490 dred 2¢ Ap 209 “spr th deciton oft rare meting aman Banh an pcsion Team, Eternal Airs & Manager of BBL hl 23 At 209 and he ie et ino cues NaDBEANGOVDOIS 6 del 14 Apt 209 adeue proson has Bon made i th Yar 218 PHS ben)1744. General proviso on cased aresiment Prorat he ening of the eer ova mdeopeoin eg er 1712. General provi on ofalace set emt Provisomeld at be bang oe ear Proviso de (nolenpreuedduing he yet Total provaon el at the endo he Ja Sebueal (7LFTT12) 114 Proviso for laid investment Prova held athe epg o ear Folly proved vena writen ofivanafened(Not-1713.1) Recor of ean pial writen oF Provan mde (oe longer ied) ing the yar “otal provision ea teen of he oar Total prove for tvetiments 174001713) ‘Total provon P7AAST7LEAI7A3) ‘n331-Fuly provide nertmen ite ft waledtenastrred ‘ant rear Compson waved ep 2018 wich wa ieee a provision ating OBL 17.14 Provision made for lverments & of-balane shee toms forthe yee Prov fr cao vere ‘enc pose ueliied eset inating OBL (enc provi on oftbaance set ens ‘oral provson made daring he ear Fron op) etokacorgeanion rexle Fund ‘Total provision charged ia rot & Los Ae 1745 Tou Provo Reqlrment ad msntaied for lavextmentsinldng oft balance shee ims atthe ed of eer 2018, ae ere DIRSTERDO | eo TT Lsorsii8 ‘e900 sT6es1.ih p18 74 TesTSoNBIO | THREAT ‘@7e70000] 04 s00m00 1a p0900 Ts. s00n0 nasi eso” [area] asso) (seszresis| —as2355tn] aosimsioe| _au9usie a. Tarasn000, Scrape —— 3 [SE IRT pu — 315529100 TERRES tear asa3ssi7 Taser 3335517 ae EE Tsongas “060.000 (are 0.) sats, sy2s365 a apse co rates Agua rine | pao ar 08 ‘aun ca aT oT TG OBT saisnarasT | esta Fron ctl Evens oninees | soaononsee ove rte comet que pment MastSenom J ins ‘Total prone for tavestment oc porn on ofan sect items ‘Torn peovso fo tvestent ining wala et tema a ee end ofthe ear Provision srpan de) fr the yar 3018 172 Provision fr dation nate a avstmens Opens ace [ABE Proviso ed dhstnen) ding the ye orig taence (Noe1721) Deane Oucted Subtotal miaton nye of tvetnnts a sare) Uequed Sabon) Tora a) (@)As per DOS Cea N03 ete 1282015 & DOS Cia No.0 de 2.05201, eid provi or Maal fd comes Tk 16153913 (ening uae escape end mal nd 45% rend tl), be te hs per DOS Cina No dt 2412011 eu previo gt aay eal Pots com te TKIS8A67, 985. The tbl requced povson i stood for Tk, 254621 SHI 161539134138 407.95) wbch hs been descr. 17200 Comite proviso fo ination vl of vestments in share ade ring epee ne Bank Benge Lined ‘ib Back Ses Lin ape Seleet| ‘Ade: Provision mde sen) ia he ear Cosine Provo om te ast ave bon made as per BRPD cc 14 itd 25.6201, Sar versa agwoomeo.—— tas ake a Ea a0 sasirsie ame aaioioee saasie ZL ears I aosaiste suse sig ison Sis700 a OTT saaeaT ie3799007 vs0st7 \———ene a, u foupeenpey) esse sae np aeRO mo, ec aTVT ay sioz quamed 1678 5y 2192S SHY PONT porn yspe(uca ques res]orure cd nore ora ooo cad ora asaret eae acurwrn ceva rer araewre care aaron eka aneane rommy oe pquasog IE vey pasy pout PovEPIO=HO:S "1 wspefdneg Mu rarySimdrg a GL) ver pin ee eT ares See) ousreimesta od Sore r=lerearreore [ari fecnrarw psorare acne coo amen WOE frscoree eon core (serous \arsrvera footrest forever raster covers oooevacci —[omerore [owes eet wn serene | mcm | meremwerna ana shor 22qus 1¢ pope sa om 204 ‘Supsedos woud prepposte) part woperiued ued 16HsTIslami Bank Bangladesh Limited Financial highlights of the Bank For the year ended 31 December 2018 Amount in Million Taka A [Particulars 2018 2017 1 [Paid-up capital 16,089.91 16099.91 2 [Total capital (equity) 69,618.58 37,958.08 3 [Capital suplus/ (etic) 371.99 23457 4 [Total assets (Excluding contra) 997,429.60, 399,959.77, 3_[Toual deposits 822,573.12, 755,022.25, a 805,759.98, 710,728.93 7 _[Total contingent liabilities and commitments 172,992.66 169,749.30 3 [investment deposit ratio 90.80% 37.80% 9 [Percentage of classified investment oganst otal general and 3s investments 10” [Profit after tax & Provision 6075.14 40295 TI [Amount of classified investment during current year 7,650.69 1,917.02 12_ [Provision kept against classified investments 28,246.85 24,146.52 13 [Provision surplus! (deficit) 22.08 0.03 14 [Cost of find 8.0644 7.6226 15. [Profit eaming assets 745 514.70 717957.77 16 [Non-profit caring assets 251,914.90 182,002.01 T7_[Retur on investments 8.6034 8.14% 18 _|Retum on assets 0.64% 055% 19 [Income from investments 68,653.59 38,030.86 20__[Eamings per share (Taka) 377 291 21__[Netincome per share (Taka) 3.77 291 22 _[Price eaming ratio (Times) 687 1224 23_[Net Asset Value (NAV) 3489630, 50,328.98, 24_|Net Asset Value (NAV) per share (Taka) 34.10 31.26 25_|Net Operating Cash Flow per share (NOCFPS) (Taka) ED) 1.20 26 [Dividend Vield per share 4.1394 2.7384 27” [Dividend pay out ratio per share 26.50% 3431% 28 [Dividend cover Ratio (Times) 317 291 63