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Letter of
Transmittal
All Shareholders
Bangladesh Bank
Bangladesh Securities and Exchange Commission
Registrar of Joint Stock Companies & Firms
Dhaka Stock Exchange Limited
Chittagong Stock Exchange Limited
Subject: Annual Report for the year ended December 31, 2014.
Yours sincerely,
CONTENTS
61
63
Directors Report
10
Strategic Objectives
85
11
Core Values
96
Disclosure on Basel II
12
Corporate Priorities
109
12
Corporate Philosophy
115
13
New Technology
13
Way Forward
116
14
Business Ethics
117
15
Code of Conduct
126
16
Corporate Profile
131
Compliance of Meeting
18
MBL Milestones
133
19
134
Media Highlights
22
Board of Directors
136
23
Directors Profiles
137
Sustainability Report
30
Corporate Structure
140
31
MBL Organogram
142
32
Management Team
145
34
152
MBL Album
46
Our Coverage
156
CFOs Statement
47
Financial Highlights
158
48
Graphical Presentation
50
Market Performance
159
Auditors Report
51
Financial Calendar
162
52
163
Financial Statements-MBL
56
235
Financial Statements-OBU
58
Segment Reporting
240
59
Chairmans Message
252
Financial Statements-Mercantile
Exchange House (UK) Limited
Standard
Disclosure Index
The following disclosure checklist will help the reader to indentify the key section of annual report 2014.
Particulars
10
Directors profiles and their representation on Board of other companies & Organization Chart
11, 14, 15
16-17
23-28, 226-230
n
n
Sustainability Reporting
60, 62, 145-151
139
139
Impairment of Assets
179-191
Segment Information
n
58
www.mblbd.com
Particulars
n
Segment analysis of
Segment Revenue
Segment Results
Turnover
Operating profit
58
Financial Statements
165, 173, 216-217
223
220
160-259
118-119
Audit Committee (Composition, role, meetings, attendance, etc.), Internal Control & Risk
Management
Human Capital
109-113, 119-120,
124
14, 125-130
118-121, 131-132
142-144
51
Other Information
125
121-123
136
120, 125
109-114
115
Particulars
Stakeholders Information
n
Distribution of shareholders (Number of shares as well as category wise, e.g Sponsors, FII etc.)
17
133
125
Graphical/Pictorial Data
n
49
Net Assets
48
Stock Performance
50
Shareholders Funds
48
87
Total Revenue
Operating Profit
EPS
47
Shareholders Fund
47
183
192
207-209
47
Current Ratios
Government as Taxes
56
Shareholders as dividend
57
www.mblbd.com
Particulars
Employees as bonus/remuneration
56
56
57
Additional Disclosures
n
144
Specific Disclosures
n
n
Disclosure of Ratings given by various rating agencies for Instruments issued by/of the Bank
17, 113
Details of Advances portfolio Classification wise as per the direction issued by the central
bank of the respective countries
Disclosure for Non Performing Assets
Movements in NPA
201-202
233
195-197
Business Ratio/Information
192
47, 89
47, 89
Cost/income Ratio
47, 89
47
144
47
192
47
47, 201-202
The break-up of Provisions and contingencies included in the Profit and Loss Account
Disclosure under regulatory guidelines (Market Discipline- Pillar 3 Disclosures under Basel-II)
212
196, 108
184
36, 44
Notice of the
16th Annual General Meeting
Notice is hereby given to all members of Mercantile Bank Limited (the Company) that the 16th Annual General
Meeting (AGM) of the members i.e. shareholders of the Company will be held on May 24, 2015 (Sunday) at 11.00 a.m.
at Bashundhara Convention Centre (Pushpanjoli), Block-C, Umme Kulsum Road, Bashundhara R/A, Dhaka-1229 to
transact the following business and adopt necessary resolutions:
Agenda:
01.
To receive, consider and adopt the Profit and Loss Account of the Company for the year ended December 31,
2014 and the Balance Sheet as at that date together with Reports of the Auditors and the Directors thereon;
02.
To declare Dividend out of the profits for the year ended December 31, 2014 as recommended by the Board of
Directors;
03.
To elect/re-elect Directors;
04.
To appoint Auditors of the Company for the term until conclusion of the next Annual General Meeting and to fix
their remuneration;
05.
Notes:
a) The Record Date of the 16th Annual General Meeting (AGM) will be on May 06, 2015 (Wednesday).
b) The Shareholders names appearing in the Register of members of the Company or in the Depository on the
Record Date will be eligible to attend the AGM and receive the dividend.
c) A Member of the Company eligible to attend and vote at the Annual General Meeting may appoint a Proxy
to attend and vote on his/her behalf. The Proxy Form, duly filled in and signed by the Member and stamped
(Tk.20.00) must be submitted at the Registered Office of the Company at least 48 hours before the meeting.
d) The Board of Directors have recommended 10% cash dividend for the year ended December 31, 2014 to be
considered in the AGM.
e) The Registration Counter shall be opened at 8.00 a.m. and remain open up to 11.00 a.m.
f)
As per Bangladesh Securities and Exchange Commission circular no. SEC/CMRRCD/2009-193/154 dated
24.10.2013, there will be no arrangement for gift or entertainment at the Annual General Meeting.
Vision
Mission
will become most caring, focused for equitable growth based on diversified
deployment of resources and nevertheless would remain healthy and
gainfully profitable bank
Strategic
Objectives
n
transparent
success
achievement
social responsibility
strategic
teamwork
shareholders value
commitment
integrity
innovation
customer delight
employees value
Core Values
n
Customer delight
Customer satisfaction pervades all our activities. We appreciate that Customers satisfaction is critical for our success.
Innovation
Origination and materialization of change management for attainment of perfection and we believe change is always
constant.
Ethical Values
We continue to be responsible, ethical, sincere and transparent in our thoughts and actions.
Socially Responsible
Constant endeavor to act and respond in a socially responsible manner keeping in mind society and our country.
Shareholders Value
Creation and Maximization of values for our shareholders.
11
al
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ap
it
Hu
e
nc
ia
pl
m
Co
Customer
Shareholders
kM
s
Ri
ag
an
et
em
Gr
ee
Ba
nk
in
Corporate
Priorities
n
Ensure customers satisfaction by meeting their demands with excellent customer services
Enlarge customers freedom by designing need based banking products and services
Manage credit risk by diversified loan portfolio with emphasis on SME and Agriculture financing
Strengthen internal control and compliance (ICC) system to establish a very systematic and effective compliant culture
Combination of skilled human resources and state-of-art technology in providing banking services
Corporate clients credit rating to remain compliant in terms of regulatory capital requirement
n
n
Corporate
Philosophy
Our customers, employees and shareholders are equally important to us. We want to achieve strong corporate growth
through FINANCIAL INCLUSION. We provide solutions at a minimum cost based on a high level of satisfaction of all
segments of our customers, thus also contributing to the prosperity of our employees and shareholders.
With a firm commitment to provide solutions, we are constantly developing innovative and technologically advanced prod-
ucts and services that satisfy our customer needs. We offer cutting edge compensation package and good work environment to our employees. We never forget our shareholders to make them pleased with financial well-being and increase
their shares value. This has given us a path to the growth and progress.
12
New
Technology
adopting the state-of-the art technology in banking operations
Way
Forward
We look forward to consolidate our position focusing on the followings:
n
n
n
n
n
n
All out efforts to improve deposits mix by procuring low cost and no cost deposits
Innovation of need based deposits and loans products and services
Incorporate technology based advanced products and solutions
To hire and retain qualified human resources according to need of the Bank
13
Business
Ethics
MBL believes that business ethics practices provides a foundation for the stability and sustainable growth of the bank, and
supports the banks efforts in achieving its stipulated goals. The bank therefore encourages all parties to conduct business
and perform their duties in accordance with business ethics practices.
n
The bank conducts its business in accordance with the law and regulations set by the central bank and other
regulatory authorities. The bank does not finance in any project, detrimental to the community or country and thus
prohibited by the credit policy of the bank.
The bank complies with various standards which are generally acceptable for conducting the banking business and
always refrain from doing aggressive business while extending credit facilities.
In conducting business, the bank adheres to Bangladesh Banks instructions while setting interest rates of deposits
and loans. It also keeps our interest spread (difference between interest rate charged on loans and interest rate paid
on deposits) at or below 5% as advised by Bangladesh Bank.
The bank offers quality services to its customers with the principles of warm friendship and mutual support. The bank
applies only those charges/fees that are disclosed by the schedule of charges of the bank.
The bank keeps and safeguards the information of its customers in confidential and not discloses such confidential
information to others unless with the consent of the customers or as required by the law.
14
Code of
Conduct
Salient principles of MBL employees code of conduct:
n
comply with the various rules, regulations and policies framed by the Bank and other Regulating Authorities.
show courtesy and attention to the customers, fellow colleagues and serve the Bank honestly, sincerely, diligently and
with utmost care.
maintain strict secrecy of the affairs of the Bank and the customers.
not accept any outside employment, honorary or stipendiary, or undertake part-time work in any office of profit without
prior written permission of the competent authority.
not engage directly or indirectly in any commercial business, industry or other business pursuits or as agent of others.
not absent from duty, nor leave the station without first obtaining the permission of the competent authority in writing.
not make any personal representation to any director of the Board or any outside authority, to intervene on his/her
behalf in any matter.
not accept or permit any member of his/her family to accept any gift or subscriptions from a constituent of the Bank,
any person likely to have dealings with the Bank, a subordinate employee or a candidate for employment in the Bank.
not make or permit any member of his/her family to make, any investment likely to embarrass or influence him/her in
discharging official duties.
not do any activity which may undermine the prestige or image of the Bank or making/joining any organization which
is not permitted.
not take part directly in any political activity and in any election to parliament or any local authority in Bangladesh or elsewhere.
15
Corporate
Profile
Background
Subsidiaries
Principal Activities
MBL has been able to establish itself as a leading third
generation private commercial bank by dint of its prudent
policy guidelines coupled with proper execution, wider
range of banking products and excellent customer
services. The core activities of the Bank are to provide
all kinds of commercial banking services including
deposits mobilization, providing loans, discounting bills,
foreign exchange business, off-shore banking, treasury
function, card business and mobile banking. MBL caters
card services to its customers by VISA dual prepaid card,
VISA Dual Hajj Card, Credit Card and Debit card, and
International/Dual cards with various up-to-date facilities.
MBL is continuously expanding its ATM network and inking
contact with the other banks with a view to making its
card service more attractive and convenient to all. Except
these, MBL is also providing other services through its 2
(two) subsidiary companies.
16
Number of Employees
1,962
Number of Braches
100
Number of ATMs
127
Financial Institution
168,474.13
02
General Public
Total
Solo
12.95%
10%
Consolidate
12.96%
10%
Shareholding Composition
Total 739,156,701 ordinary shares of the Bank were
outstanding as on December 31, 2014. Share holding
position as on same date is as under:
% of total
shares
291,182,043
39.39%
49,676,957
6.72%
Foreign
Capital Base
December
2014
Number of Shares
Government
71,800
Number of Subsidiaries
Ownership
Sponsors/Directors
5,017
Composition
398,297,701
53.89%
739,156,701
100.00%
Credit Rating
MBL has strong and stable credit rating over the last couple
of years. Credit Rating Information and Services Limited
(CRISL) has reaffirmed the long term rating of MBL to AA and short term rating to ST-2 based on its financial up to
December 31, 2013 and other qualitative and quantitative
information up to the date of rating. CRISL also placed the
Bank with Stable Outlook.
Rating
Basis of
Information
Date of
Rating
2012
18 June, 2013
AA-
ST-2
CRISL
2013
06 May, 2014
AA-
ST-2
CRISL
Long
Term
Rating
Short Company
Term
17
MBL
Milestones
May 20, 1999
Opening of 15 Branch
th
18
Sponsors
of the Bank
whose dreams, aspirations and efforts came into reality.
Shamsur Rahman
(Deceased)
Engr. Mohd.
Monsuruzzaman
19
M. S. Ahsan
Jamshed R Khan
(Deceased)
Bilkis Begum
A. S. M. Feroz Alam
M. Amanullah
20
Mohd. Selim
Feroza Begum
S. M. Shafiqul Islam
(Mamun)
Nargis Anwar
Md. Nasiruddin
Choudhury
21
Board of
Directors
Chairman
Vice Chairman
M. Amanullah
22
M. Ehsanul Haque
www.mblbd.com
www.mblbd.com
Directors
Profiles
Mr. Morshed Alam is one of the most eminent business icons of
present time. With perception and technical expertise, he has
become a leading entrepreneur of Bangladesh. He is a member
of parliament of the 10th National Parliament representing the
constituency of 269, Noakhali-2. He was declared CIP for the
Fiscal Year of 1996-1997, 1999-2000, 2008-2009, & 2010-2011
(Export) by the Ministry of Commerce, Government of Peoples
Republic of Bangladesh for his remarkable contribution in
business arena. He was also awarded National Export Trophy
for Export for the Fiscal Year of 1997-1998 (Silver), 1999-2000
(Gold), 2000-2001 (Gold), 2006-2007 (Gold), 2009-2010 (Silver
& Bronze for two different business units) and 2010-2011
(Silver & Bronze for two different business units).
Morshed Alam, M.P
Chairman
23
Directors Profiles
Directors' Profiles
M. S. Ahsan
Vice Chairman
24
www.mblbd.com
www.mblbd.com
Mr. Md. Anwarul Haque was born on January 03, 1951 in a respected
Muslim family in Dhaka. He is a renowned businessman of the country. He
obtained the B.Sc. Engg (Civil) Degree and engaged himself in business
since last 38 years in different sectors like Construction, Real Estate, Export
& Import and Trading. His business affiliation is versatile and diversified. He
is the Managing Director of Living Plus Ltd. He is a Sponsor Shareholder of
Premier Leasing & Finance Ltd., Director of Holiday Travels Ltd, Premier
Leasing Securities Ltd. and Chairman of Mercantile Bank Securities Ltd. He
is also Director of Securities Broking & Management Ltd. He is a
Shareholder & Ex-Chairman of Global Insurance Ltd. His association with
the abovementioned well-reputed organizations makes him a forward
looking and progressive businessman who has already reached an enviable
height. Furthermore, he has deep affinity and also attachment with various
socio-cultural activities like Gulshan Club Ltd., Dhanmondi Club Ltd., and
Uttara Model Club Ltd.
Director
25
Directors Profiles
Directors' Profiles
M. Amanullah
Director
Mr. Aman is also recognized for his contribution to the community and to
the nation in the field of education. He is the Chairman of the Board of
Trustee of Presidency University, Dhaka. For the contribution to the
society, as a philanthropist Mr. Amanullah established Aman Group
Foundation as his initiative towards social responsibilities. For this act, he
was honored several times by the Govt. and other organizations. He was
awarded the Sarojini Naidu Gold Medal Award in 2000, C.R. Das Gold
Medal Award in 2002 and the Atish Dipankar Scholar Congress Award in
2004 for his extraordinary contribution in various sectors of Bangladesh.
He was also selected CIP for the year 2012 for his significant contribution
to the countrys export trade sector.
Mr. Md. Abdul Hannan was born on 27th July, 1962 in a respectable
Muslim family of Faridgonj, Chandpur. He is one of the leading
businessmen of the country, especially in export of readymade
garments. He is Chairman & Managing Director of Dabstar Associates
Limited, Reu Fashion Limited, ZHAS Garments Limited, M.H. Trading
and Murad Apparels Limited. He is also Director of Eastern University of
Bangladesh and Pan Pacific Hospital. His contributions towards the
society are quite remarkable.
26
www.mblbd.com
www.mblbd.com
Mohd. Selim
Director
27
DirectorsProfiles
Profiles
Directors'
Dr. Md. Rahmat Ullah is a Professor in the Department of Law, and Provost,
Kabi Jashim Uddin Hall, University of Dhaka. He is a Senate member,
University of Dhaka. He holds the position of Executive Director of
Empowerment through Law of the Common People (ELCOP) a human rights
education, research and training centre. Other than these, he is an Advisor to
the Department of Law, City University, Dhaka; Governing body member MH
Somorita Medical College and Hospital, Dhaka; Governing body member,
Alhaz Mockbul Hossain University College, Dhaka; Member, Interuniversity
Sports Council and an Independent Director, Mercantile Bank Ltd.
He completed LL.M from Baku State University, Azerbaijan and Ph.D from
Kiev State University, Ukraine. During his professional career he was a
syndicate member to the University of Dhaka and worked as adjunct faculty
member to several private universities. He participated in professional
workshops, seminars and trainings in India, Nepal, China, Belgium,
Netherland, Switzerland and Iran. His field of interest is human rights and
commercial law.
He is a profile researcher in the field of human rights and legal issues. He
worked as national and international consultant under different projects on
human rights and legal issues with UNHCR, UNDP, HRDC, MJF and NHRC.
He has published more than 22 research articles on legal issues and author
of 1 book and co-author of 4 books. He is also Executive Editor of 5 research
Books. He is a committed human rights activist and desires to work for the
poor for their better life.
Mr. M. Ehsanul Haque is a senior banker with over thirty five years of
hands-on experience in diverse fields of Commercial and Micro Small &
Medium Enterprise (MSME) Banking, Finance and Financial consultancy
with Multilateral Agencies. During his career Mr. Haque held senior
positions at different local banks, foreign banks and financial institutions.
He was Managing Director of Prime Bank, IDCOL, BRAC Bank and BRAC
Afghanistan Bank. He implemented Global Best Practices in banking in
Bangladesh, India, Vietnam and Afghanistan. After completion of his
masters in Economics from Jahangirnagar University, Mr. Haque started
his banking career in Grindlays Bank Plc (now Standard Chartered Bank)
as a Management Trainee Officer and was there for 18 years rising up to
Chief Manager.
M. Ehsanul Haque
28
We mourn
Founder Chairman
January 21, 1941 - March 6, 2013
Shamsur Rahman
Jamshed R Khan
29
Corporate
Structure
Board of Directors
A. S. M. Feroz Alam
Mohd. Selim
M. Amanullah
M. Ehsanul Haque
M. Ehsanul Haque
Executive Committee
A. S. M. Feroz Alam
M. S. Ahsan
Auditors
M. Amanullah
Chartered Accountants
Audit Committee
Tax Advisor
30
31
Board
Division
CSR Desk
Share
Department
Company
Secretariat
Financial Administration
Division
General Service
Division
Information Technology
Division
IT Business Team
Treasury Division
(Font Ofce)
Anti Money
Laundering Unit
Credit Risk
Management Division
Risk Management
Division
Treasury Division
(Back Ofce)
Special Asset
Management
Division
Executive
Committee
Consumer and
Retail Banking
Division
Branches Division
International
Division
Recovery
(Corporate, SME,
Cards, Consumer
& Retail)
DMD 1
DMD 3
Corporate Banking
Division
Human Resources
Division
Internal Control &
Compliance Division
Mobile Banking
Division
MBL Training
Institute
Risk Management
Committee
Card Division
Institutional
Liability Marketing
Department
Agriculture Credit
Department
Corporate Affairs
Non-Resident
Business Division
Green Banking
Audit
Committee
Garments Cell
(Supervision & Monitoring)
Credit Administration,
Monitoring, Recovery
& Compliance Division
SME Financing
Division
Research &
Planning Division
General Banking
Division
DMD 2
Board of Directors
Board Audit
Division
www.mblbd.com
MBL
Organogram
Management
Team
M. Ehsanul Haque
Managing Director & CEO
Mohammad Masoom
Mati-ul-Hasan
Mohammad Ismail
32
Management
Committee (MANCOM)
M. Ehsanul Haque
Chairman
Member
Member
Member
Mohammad Masoom
Member
Mati-ul-Hasan
Member
Mohammad Ismail
Member
Member
Member
Member
Member Secretary
33
Zonal Office
Training Institute
Chittagong Zone
Mishkat Arcade (Level-1)
21/1, Agrabad C/A, Chittagong
Phone: 031-2529445, 716421
723181, 721772
Fax: 88-031-2529445
Swadesh Tower
41/6 Purana Paltan
Dhaka-1000
Phone: 7174016
Fax: 88-02-9571096
Javed Tariq, Principal
Marketing Division
Purbani Roy, VP
Treasury Division
Jahangir Javed, VP
International Division
Shamim Ahmed, SEVP
Branches Division
K. M. Abdur Razzaque, SVP
34
Head of Divisions
35
Rajshahi Branch
Dhanmondi Branch
Naogaon Branch
Sylhet Branch
Agrabad Branch
Banani Branch
Khatunganj Branch
Ahsanullah Tower
F. M. Nawaz Ali
EVP & HOB
36
VP & HOB
Nayabazar Branch
A S M Zakir Hossain
SVP & HOB
Joypara Branch
Jashim Uddin
VP & HOB
www.mblbd.com
Motijheel Branch
Malek Mansion
128 Motijheel C/A, Dhaka-1000
Phone : 02-9561178, 9586944-5
Mobile : 01730-320284 (HOB)
Fax : 88-02-9586946
Mirpur Branch
Farook Iqbal
SVP & HOB
Ashulia Branch
Khulna Branch
Rupsha Plaza
Uttara Branch
House- 10/A, Road- 7/D, Sector- 9
Uttara Model Town
Uttara, Dhaka -1230
Phone : 02-8931729, 8955879
8958177, 8931725
Mobile : 01711-535956 (HOB)
Fax : 88-02-8955881
A B M Eradul Islam
EVP & HOB
A.K.M. Hassanuzzaman
FVP & HOB
Rangpur Branch
Farid Ahmed
VP & HOB
Anwar Hossain
SVP & HOB
Jhilongja Branch
Osman Plaza
75 Elephant Road, Dhaka-1205
Phone : 02-9614542, 9677364
Mobile : 01713-083617 (HOB)
Fax : 88-02-9669458
37
Feni Branch
Debabrata Das
VP & HOB
Bogra Branch
Moulvibazar Branch
Moulvibazar
Phone : 0861-62871, 62872
Mobile : 01713-068126
Fax : 88-0861-62873
Golam Moula
FVP & HOB
Bijoynagar Branch
Chowmuhani Branch
Samobay Bhaban
Karimpur Road Chowmuhani
Begumganj, Noakhali
Phone : 0321-52960
Mobile : 01713-036991 (HOB)
Fax : 88-0321-52966
Mojibul Hoque
AVP & HOB
Konabari Branch
Moghbazar Branch
Gulshan Branch
Sapahar Branch
Hemayetpur Branch
Beanibazar Branch
Zaman Plaza
Beanibazar, Sylhet
Phone : 08223-56180
Mobile : 01713-384495
Fax : 88-08223-56181
38
Md. Kamruzzaman
SVP & HOB
www.mblbd.com
Dagonbhuiyan Branch
Mizan Tower
273 Basurhat Road
Dagonbhuiyan, Feni
Phone : 03323-79105
Mobile : 01730-328684 (HOB)
Fax : 88-03323-79106
Bhojeswar Bazar
Naria, Shariatpur
Mobile : 01755-530005
01713-384497 (HOB)
M. M. Rafikul Islam
AVP & HOB
Comilla Branch
Dinajpur Branch
1042/945 Jhawtola
Comilla
Phone : 081-65275
Mobile : 01713-384498 (HOB)
Fax : 88-081-65276
M A Malek Patwary
VP & HOB
Jessore Branch
A. Ali Complex
45 R. N. Road, Jessore
Phone : 0421-62933
Mobile : 01713-452667
Fax : 88-0421-65392
Green Orlando
42/4 Pragati Sarani
Baridhara, Dhaka-1212
Phone : 02-8411503, 8411501-2
Mobile : 01713-199826 (HOB)
Fax : 88-02-8411504
IEB Bhaban
8/A Ramna Dhaka-1000
Phone : 02- 7110651, 7110684
Mobile : 01713-199801 (HOB)
Fax : 88-02-7110610
S A Tower
Airport Road, Chittagong
Phone : 031-740682-3, 742217
Mobile : 01730-318185 (HOB)
Fax : 88-031-740684
39
Mohammad Hossain
FVP & HOB
A T M Monjurul Karim
AVP & HOB
Narayanganj Branch
H R Plaza
64 (Old), 90 (New)
Bangabandhu Road, Narayanganj
Phone : 02-7648242, 7648243
Mobile : 01713-199875 (HOB)
Fax : 88-02-7648244
Mymensingh Branch
Rahman Mansion
1284/1 Club Road
Gobindokhal, Patiya, Chittagong
Phone : 03035-56579
Mobile : 01730-320813 (HOB)
Fax : 88-03035-56579
A M Monsurul Hoque
AVP & HOB
Aganagar Branch
Dholaikhal Branch
Syed Moniruzzaman
PO & HOB
Patuakhali Branch
Rangamati Branch
40
www.mblbd.com
Thakurgaon Branch
Bangla Bazar
Begumganj, Noakhali
Phone : 0321-53305, 56631
Mobile : 01558-347569 (HOB)
Fax : 88-0321-53164
Chapainawabganj Branch
65-67 Jhilim Road
Boro Indara More
Sadar, Chapainawabgonj-6300
Phone : 0781-51719, 51720
Mobile : 01730-709982
Fax : 88-0781-51707
Shishahat Branch
Shisha Khorpa Bazar
175 Khorpa, Porsa, Naogaon
Phone : 01932-710888
Mobile : 01755-533141
Munshi Md. Asif Reza
AVP & HOB
Kushtia Branch
Imamganj Branch
Md. Ashraf-Bin-Azher
AVP & HOB
Sunamganj Branch
Zaman Complex
Arpin Nagar (Old Bus Stand)
52-01, Sunamgonj Municipality
Sunamgonj
Phone : 0871-61277
Mobile : 01755-533148 (HOB)
Fax
: 880-871-60280
Ashuganj Branch
Mahmuda Akhter
VP & HOB
Md Shahidul Alam
FVP & HOB
Rampura Branch
Damudya Branch
Main Road, Damudya Bazar
Damudya, Shariatpur
Phone : 06023-56204
Mobile : 01755-533146 (HOB)
Fax : 88-06023-56201
Moniruzzaman Khan
PO & HOB
41
Subidbazar Branch
Debiganj Branch
Nazipur Branch
Debiganj Bazar
Debiganj, Panchagarh
Phone : 05654-56151
Mobile : 01755-533147
Fax : 88-05654-56152
Niamatpur Branch
Chuadanga Branch
Malik Tower
107 Borobazar, Shahid Abul
Kashem Sarak, Chuadanga
Phone : 0761-63641, 63871 (Dir.)
Mobile : 01714-031241, 01712-107802
Fax : 88-0761-63761
Gobindaganj Branch
Karnaphuli Complex
Sadar Road, Bhola
Phone : 0491-62720-21
Mobile : 01755-637382 (HOB)
Fax : 0491-62720
Masum Iqbal
FAVP & HOB
Kishoreganj Branch
Bhulta Branch
42
Patherhat Branch
Bhola Branch
Debojyoti Majumder
FVP & HOB
Pritish Barua
FAVP & HOB
www.mblbd.com
Tajimuddin Plaza
Abdullahpur Bus stand
South Keraniganj Dhaka-1311
Mobile : 01777-792509 (HOB)
Md. Showkat Hossain
FAVP & HOB
Jhalokathi Branch
Al Marzan
30, Kumarpatti,Jhalokathi
Pouroshova, Jhalokathi
Mobile : 0181-9710722
Ahsanul Haq Chowdhury
EVP & HOB
Atibazar Branch
Madanpur Branch
Khulshi Branch
Salam Heights
Zakir Hossain Road
South Khulshi, Chittagong.
Phone : 031-612258, 031-612257
Mobile : 01713-048095 (HOB)
01787-681259 (Br.)
Fax : 031-612259
Pabna Branch
Munshi Complex
Hazi Abdul Gani Sarak
Boro Bazar, Pabna
Phone : 0731-63356
Mobile : 01755-632918
Fax : 88-0731-63354
Suraya Nasrin
FVP & HOB
Monowar Hossain
SEO & HOB
Laxmipur Branch
Bhelanagar Branch
Khadiza Mansion, Bhelanagar
Nandipara, Chinishpur
Narsingdi Sadar, Narsingdi
Mobile: 01713-279558 (HOB)
Partha Sarkar
AVP & HOB
R B Tower
Thana Road, Laxmipur
Phone : 0381-62389 (HOB)
Mobile : 01713-369352 (HOB)
01715-023387 (MOP)
Fax : 0381-62391
43
Mahbub Jamil
AVP & HOB
annual report 2014
Kalaiya Branch
Shimon Plaza
Kalaiya, Bauphal Patuakhali
Phone : 0442256-221
2256-166 (HOB)
Mobile : 01713-369359 (HOB)
Fax : 0442256-375
Moudud Ahmed
PO & HOB
BRANCHES OF MBSL
Dhaka Branch
Swadesh Tower, Level-4
41/6 Purana Paltan Lane
Dhaka-1000
Phone : 7122513, 7122515
Fax : 88-02-7119078
Mirpur Branch
Razia Plaza, Rokeya Sarani
184, Senpara Parbota
Mirpur - 10, Dhaka- 1216
Phone : 02-9014640
Fax : 88-02-9014680
Sylhet Branch
Al-Hamra Shopping City
1052-00 Zinda Bazar
Sylhet-3100
Phone : 0821-711565
Fax : 88-0821-711571
Uttara Branch
House-22, Sonargaon Janapath
Sector-9, Uttara Model Town, Dhaka
Phone : 8959047, 8962945
Fax : 88-02-8961798
Khulna Branch
Rupsha Plaza
73 KDA Avenue C/A
Sonadanga, Khulna-9100
Phone : 041-731396
Fax : 88-041-731397
Agrabad Branch
Mishkat Arcade (1st Floor)
21/1, Agrabad C/A, Chittagong
Phone : 031-721865
Fax : 88-031-716459
Operation Director : Mr. Jude Mark Rozario, Chief Executive Officer & Manager
annual report 2014
44
45
Our
Coverage
CHAPAINAWABGANJ
The green shaded districts represent our branch network coverage across the country.
46
www.mblbd.com
Financial
Highlights
Particulars
Income Statement
Interest Income
Interest Expenses
Net Interest Income
Non-Interest Income
Non-Interest Expenses
Net Non-Interest Income
Profit before Provision and Tax
Provision for Loans and Assets
Profit after Provision before Tax
Porvision for tax including deferred tax
Profit after Tax
Balance Sheet
Authorized Capital
Paid-up Capital
Shareholders Equity
Deposits
Loans and Advances
Investments
Fixed Assets
Total Assets
Foreign Exchange Business
Import
Export
Remittance
BIS Capital Measure (SOLO)
Total Risk Weighted Assets under Basel II
Core Capital (Tier I)
Supplementary Capital (Tier II)
Total Capital/Regulatory Capital
Core Capital (Tier I) to RWA
Supplementary Capital (Tier 2) to RWA
Capital Adequacy Ratio under Basel II
Credit Quality
Non-performing Loans (NPLs)
Provision for unclassified Loan
Provision for classified Loan
NPLs to total Loans and Advances
Common Share Information
Market price per share (BDT)
No. of Shares Outstanding (Million)
Earning per Share (BDT)
Dividend:
Cash
Stock
Dividend Payout Ratio
Market Capitalization
Book Value per Share
Market Value Book Value multiple
Price Earning Multiple (Times)
Operating Performance Ratio
Net Interest Margin (NIM)
Net Non-interest Margin
Earning base in Assets (average)
Cost Income Ratio
Credit Deposit Ratio
Cost of Deposit
Yield on Loans and Advances
Spread
Return on Average Assets
Return on Average Equity
Equity Multiple (Times)
Other Information
No. of Branches
No. of Employees
No. of Correspondence Relationship
(BDT in Million)
2010
2011
2012
2013
7,669.42
5,176.00
2,493.42
2,282.39
1,928.69
353.70
2,847.12
411.20
2,435.93
1,010.59
1,425.34
10,719.69
8,022.13
2,697.56
3,404.69
2,600.57
804.12
3,501.68
497.50
3,004.18
1,270.00
1,734.18
14,207.72
10,556.79
3,650.93
2,459.83
2,759.98
-300.15
3,350.78
969.33
2,381.45
1,000.00
1,381.45
16,590.37
11,795.76
4,794.61
2,500.35
3,039.26
-538.91
4,255.70
1,027.00
3,228.70
1,250.00
1,978.70
16,758.21
11,385.39
5,372.82
2,623.20
3,585.45
-962.25
4,410.57
2,122.06
2,288.51
1,100.00
1,188.51
8,000.00
4,072.21
7,185.69
75,629.14
66,377.70
10,937.20
1,647.58
87,140.11
8,000.00
4,968.10
9,659.33
102,262.02
79,999.80
24,645.38
2,711.32
116,553.01
8,000.00
6,110.75
10,924.55
132,093.64
93,610.87
41,314.19
2,898.60
152,658.47
12,000.00
6,599.61
12,574.24
124,566.97
97,688.50
30,090.60
3,097.60
144,841.87
12,000.00
7,391.57
13,519.97
140,475.84
117,060.03
32,184.09
3,198.11
168,474.13
89,524.10
59,404.20
5,108.10
95,008.70
81,311.80
7,150.00
113,434.10
81,477.10
15,792.80
100,685.60
71,671.50
12,434.70
107,089.70
78,352.70
18,208.60
95,158.50
7,100.90
1,583.52
8,684.42
7.46%
1.66%
9.13%
101,085.30
8,835.00
1,794.40
10,629.40
8.74%
1.78%
10.52%
111,524.70
10,216.87
1,861.99
12,078.86
9.16%
1.67%
10.83%
119,995.10
11,767.60
1,942.10
13,709.70
9.81%
1.62%
11.43%
147,484.30
12,427.74
6,676.21
19,103.95
8.43%
4.52%
12.95%
1,187.81
749.00
617.53
1.78%
2,084.62
889.63
712.42
2.61%
4,090.92
969.00
1,495.87
4.37%
4,659.75
995.00
2,425.05
4.77%
5,965.63
2,547.49
2,404.18
5.10%
58.05
407.22
4.10
22.00%
22.00%
53.61%
23,639.13
17.65
3.29
14.14
34.80
496.81
3.49
23.00%
23.00%
65.90%
17,288.96
19.44
1.79
9.97
19.10
611.08
2.26
15%
7.00%
8.00%
66.37%
11,671.54
17.88
1.07
8.45
16.70
659.96
2.68
20%
8.00%
12.00%
66.71%
11,021.33
19.05
0.88
5.57
13.70
739.16
1.61
10%
10.00%
62.19%
10,126.49
18.29
0.75
8.52
3.59%
0.51%
90.62%
40.38%
87.77%
7.94%
12.80%
4.86%
1.86%
24.83%
12.13
2.93%
0.87%
90.46%
42.62%
81.68%
9.63%
13.86%
4.23%
1.70%
20.59%
12.07
2.99%
-0.25%
90.61%
45.17%
79.26%
10.02%
14.72%
4.70%
1.03%
13.42%
13.97
3.58%
-0.40%
90.09%
41.66%
77.02%
8.93%
14.28%
5.35%
1.33%
16.84%
11.52
3.82%
-0.68%
89.78%
44.84%
83.33%
8.26%
13.28%
5.02%
0.76%
9.11%
12.46
65
1,526
589
75
1,668
638
86
1,981
627
91
1,814
644
100
1,962
638
47
2014
Graphical
Presentation
Net Interest Income
Operating Profit
(BDT in Million)
(BDT in Million)
4,794.61
5,372.82
3,650.93
2,493.42
2011
2012
2013
2014
Shareholders' Equity
2012
152,658.47
13,519.97
10,924.55
2010
2014
144,841.087
168,474.13
116,553.01
2011
2012
2013
10,629.40
2011
12,078.86
2012
2014
19,103.95
13,709.70
2013
2010
2014
2011
2010
10.52%
10.83%
2011
2012
2013
2014
11.43%
2013
12.95%
2014
No. of Employees
100
75
86
2011
2012
48
1,981
91
1,526
65
2012
9.13%
No. of Branches
2010
2013
87,140.11
7,185.69
2010
2011
2010
(BDT in Million)
12,574.24
8,684.42
3,350.78
4,410.57
Total Assets
(BDT in Million)
9,659.33
3,501.68
2,847.12
2,697.56
2010
4,255.70
2013
2014
2010
1,668
2011
2012
1,814
1,962
2013
2014
www.mblbd.com
Deposits
(BDT in Million)
132,093.64
102,262.02
124,566.97
140,475.84
75,629.14
2010
117,060.03
66,377.70
2011
2012
2013
2014
79,999.80
2010
93,610.87
2011
2012
81,311.80
81,477.10
97,688.50
2013
2014
Export
Import
(BDT in Million)
89,524.10
(BDT in Million)
113,434.10
95,008.70
(BDT in Million)
100,685.60
107,089.70
71,671.50
78,352.70
59.404.20
2010
2011
2012
2013
2014
Remittance
2010
2011
2012
2013
(BDT in Million)
(BDT)
18,208.60
15,792.80
19.44
19.05
12,434.70
5,108.10
-
2010
7,150.00
2011
2012
2013
2014
2010
2011
2012
2013
2014
(BDT)
(BDT)
58.05
4.10
3.49
34.80
2011
18.29
17.88
17.65
2010
2014
2.26
19.10
16.70
2012
2013
2.68
1.61
13.70
2014
2010
2011
2012
49
2013
2014
Market
Performance
Dhaka Stock Exchange (DSE)
Month
High
Low
Volume
High
Low
Volume
(Tk.)
(Tk.)
(no. of Shares)
(Tk.)
(Tk.)
(no. of Shares)
January, 2014
17.90
17.40
46,141,500
18.10
16.20
4,914,100
February, 2014
19.90
19.20
67,455,000
20.10
18.20
6,211,600
March, 2014
17.80
17.30
21,501,500
17.90
16.20
1,496,500
April, 2014
17.50
16.60
42,469,000
17.40
15.70
1,960,530
May, 2014
17.00
16.40
34,860,000
16.90
15.20
1,408,100
June, 2014
16.60
15.90
35,070,500
16.80
14.90
1,050,500
July, 2014
14.90
14.50
9,803,500
15.10
13.60
359,200
August, 2014
13.70
13.30
17,488,500
13.90
12.60
1,155,100
September, 2014
13.30
12.80
17,710,000
13.30
11.90
1,783,900
October, 2014
14.70
14.20
20,821,500
14.80
13.30
1,312,500
November, 2014
13.80
13.50
10,754,000
13.80
12.80
608,700
December, 2014
13.90
13.40
15,339,305
13.90
13.20
1,641,900
20
18
16
14
-14
-14
-14
50
-14
-14
-14
-14
-14
-14
-14
-14
-14
www.mblbd.com
Financial
Calendar
Quarterly Results
Peculiars
Audited consolidated results for
23.04.2015
15.05.2014
24.07.2014
27.10.2014
Particulars
Allotment
Date
Record Date
09.04.2014
12.06.2014
Notice Date
Held On
20.05.2014
12.06.2014
Stock Details
Particulars
Stock Symbol
Other Information
Dividends
Particulars
DSE
CSE
MERCANBANK MERCANBANK
Company Code
11128
22023
Listing Year
2003
2003
Market Category
Electronic Share
Yes
Yes
10
10
739,156,701
739,156,701
51
MBL
Products & Services
Deposit Products
Scheme Deposits
52
School Banking
Retail Loans
Jj
FKj kJrkJx u
Corporate Loans
Export Finance
Structured Finance
Loan Syndication
HING
LOAN
IS
HOUSE FURN
53
uJj
SME Financing
Agriculture Loan
54
MBL Card
Debit Card
Other Services
Online Banking
Off-Shore Banking
NRB Banking
SMS Banking
Locker Service
Locker Services
55
Economic
Impact Report
Economic Impact refers to the effect of a policy, program,
project, activity or event on the economy. Economic
impact is usually measured in terms of changes in
economic growth (output or value added) and associated
changes in jobs (employment) and income (wages). We
can understand how a bank adds value to the society by
analyzing economic impact.
MBL aims to create optimum value to its stakeholders.
Economic impact report highlights the value that the Bank
caters to its shareholder and to the country as a whole.
Among others, followings are the important measures
taken by the Bank with a view to offering sustainable
values to all the stakeholders.
Capital Adequacy
MBL is maintaining a strong capital base. Total eligible
capital of the Bank stood at BDT 1,910.39 Crore as
on December 2014 which is well above the minimum
requirement of BDT 1,474.84 Crore as on the same date.
Capital Adequacy Ratio was 12.95% as on December
2014 as compared to minimum requirement of 10% as per
Basel II.
Dec-13
1,076.76
Dec-14
1,242.77
194.21
667.62
1,370.97
1,910.39
11,999.51
14,748.43
11.43%
12.95%
9.81%
8.43%
1.62%
4.52%
1,199.95
1,474.84
the
year
ended
2013
(BDT in million)
2014
19,090.72
19,381.41
5,876.04
6,419.50
(1,027.00)
(2,122.06)
4,849.04
4,297.44
(13,214.68) (12,961.91)
2013
(BDT in million)
2014
To Employees
1,428.29
1,787.53
1,230.00
1,135.03
192.05
221.40
To Statutory Reserve
for
Depreciation
(BDT In Crore)
Particulars
645.74
20.00
1,332.96
Total
4,849.04
457.70
(35.03)
730.81
4,297.44
21%
35%
5%
To Statutory Reserve
To Government as
Income Tax
Depreciation
27%
12%
Retained Earning
Decembber, 2013
Total Eligible Capital
1,474.84
1,910.39
1,199.95
1,370.97
Decembber, 2014
Minimum Capital Requirement
56
www.mblbd.com
16,493.04 19,054.84
15,182.51 17,773.94
Earnings
1,978.69
1,188.51
1,027.00
2,122.06
3,005.69
3,310.57
11.20%
11.20%
1,700.44
1,990.68
1,305.25
1,319.89
Average
cost
of
equity
(based on first years return
on sanchaypartra by the
Government of Bangladesh)
plus 2% risk premium
2013
1,319.89
1,305.25
(BDT in Million)
2014
BDT in
Million
Market value
739,156,701
13.70
10,126.45
Book value
739,156,701
18.29
13,519.18
Market
value added
(3,392.73)
Market value
(3,392.73)
Book value
Dividend
2010
2011
2012
57
2013
10%
5,535.67
Per
Share
20%
3,918.80
No of Shares
Outstanding
13,519.18
12,574.24 13,519.17
Particulars
15%
Shareholders equity
2014
23%
2013
Particulars
10,126.45
(BDT in million)
22%
2014
Segment
Reporting
MBL Operation
(BDT in Crore)
Banking Operations
Particulars
Subsidiaries
Mercantile Exchange
House (UK) Limited
Mercantile Bannk
Securities Limited
1,938.14
3.88
0.96
51.96
Operating Profit
441.06
3.61
(1.72)
1.11
228.86
3.61
(1.72)
1.05
Assets Employed
16,847.41
111.12
2.67
628.99
Capital Employed
1,351.92
68.43
Core Banking
Operating Revenue
Banking Operation
(BDT in Crore)
Particulars
International Division
Operation
Operating Revenue
Operating Profit
58
Treasury
Operation
Card
Operation
Mobile Banking
Operation
53.71
432.89
10.32
0.12
52.60
(0.85)
(5.90)
Chairmans Message
Bismillahir Rahmanir Rahim
Assalamualaikum
Dear Shareholders,
It is my pleasure to present the Annual Report along with
the Audited Financial Statements for the year ended 31
December, 2014. For over 15 years, Mercantile Bank
Limited (MBL) is contributing to the growth of Bangladesh
economy by creating entrepreneurs and serving the
underserved. Our guiding principle in this regard is
to empower people, businesses and communities by
enhancing their financial well-being. We are proud to
be regarded as a safe, strong and community minded
organization by our customers. It is our delight to be judged
as a good place to work by our employees, a good place
to be associated with by our customers, stakeholders,
and a good place to invest by our shareholders.
Global growth in 2014 was lower than initially expected,
continuing a pattern of disappointing shifts over the past
several years. In the global market oil prices reduced
substantially since September, thus accelerating growth.
However this was largely off-set by negative factors
like investment weaknesses in many markets. Activity
in China, Russia, the European Union and Japan has
weakened, as compared to a buoyant United States.
59
Chairmans Message
60
61
62
M. Ehsanul Haque
Directors
Report
Directors' Report
7.30
6.12
6.03
6.32
6.66
11
-1
2
20
12
-1
3
20
13
-1
4
20
14
-15
*
6.07
-11
-1
0
20
20
20
09
08
10
5.74
-0
9
6.19
20
20
6.43
-0
7
06
20
10
5.76
5.
36
6.48
5.84
6.1
1
6.4
6.
5.63
60
5.74
ec
em
be
r
D
em
be
er
ct
ob
ov
tem
be
Se
p
st
ly
gu
Au
Non-Food
Food
Ju
ne
r
General
Ju
ay
ril
Ap
ch
ar
M
ry
y
ar
nu
7.
Ja
61
6.2
5.71
91
81
5.45
7.
67
6.
6.
5.16
7.
04
07
7.
5.25
7.
80
97
48
5.20
8.
6.
5.37
01
35
46
5.53
9.
8.
7.
64
96
80
81
7.
8.
8.
8.
48
-0
8
6.63
-0
6
7.
GDP Growth
07
5.96
-0
5
Inflation rate did not exceed single digit over the year
2014. Highest overall inflation (point to point) rate was
7.50% in the month of January and reduced to 6.11% in
December 2014. Food inflation (point to point) increased
steadily from 8.81% in January 2014 to 9.09% in May
2014 mainly due to supply chain disruption followed by
frequent nationwide strikes, and simultaneous price
hike in neighboring countries. After that, it decreased
sharply to 5.86% in December, 2014. On the other hand,
point to point non-food inflation was steady at around
5.5% throughout year and increased a little to 6.48% in
December 2014.
50
05
04
Inflation
7.
Bangladesh Economy
20
20
44
7.
ua
br
World Economy
10
Fe
Exports
Export earnings registered a growth rate of 11.7%, nearly
missing the target of 12.9% growth set out for FY2014.
The economy earned USD 30.18 billion as export
earning in FY2013-14 as compared to USD 27.03 billion
in FY2012-13. Indeed, export performance was showing
robust trends, and was above the target level, for the first
ten months of FY2014. It was in the last two months, that
export earnings recorded a lowly 5.5% growth.
www.mblbd.com
2,000.00
1,000.00
4,000.00
2014
December
November
October
September
July
2013
August
May
2012
June
April
March
February
January
3,000.00
Imports
December
November
October
September
July
August
June
May
April
March
er
be
mb
er
be
January
ce
ve
ob
em
February
De
ct
st
2014
No
pt
gu
2013
Se
ly
ry
2012
Au
ne
Ju
Ju
ay
M
ril
Ap
ch
ar
2014
2013
2012
ua
1,000.00
ar
2,000.00
br
3,000.00
nu
Fe
4,000.00
Ja
Remittances
Remittance inflow recorded negative growth of 1.6%
during FY2014, a first time in many years. As per the
Bangladesh Bank record, the last time a negative growth
was experienced was in FY2001 when remittance inflow
registered negative 3.6% growth. Remittance inflow
during FY2013-14 was USD 14.23 billion as compared
to USD 14.46 billion in FY2012-13. In calendar year 2014
total remittance inflow increased to USD 14.94 billion from
USD 13.83 billion in 2013 indicating a positive growth of
8.03% in 2014 over the year 2013.
Trends of Monthly Remittance Inflow over 2012-2014
r
be
em r
e
ec
D mb
e
ov
N
er
ob
ct er
O
b
em
pt
Se t
s
gu
Au
ly
Ju
ne
Ju
ay
M
ril
Ap
ch
ar
M ary
u
br
Fe ry
a
nu
Ja
2012
2013
2014
65
Directors' Report
Volume
Garments
Trade Finance
SME
(BDT in million)
Type
Volume
55,176.86
39.28%
Fixed Deposits
46,057.22
32.79%
Savings Deposits
10,534.22
7.50%
Current Deposits
5,494.16
3.91%
8,850.41
6.30%
Other Deposits
Total
14,362.97
10.22%
140,475.84
100.00%
13.31%
9,068.66
7.75%
9,508.60
7,363.60
5,910.44
Transportation
3,054.88
Textile
4,158.02
14.18%
15,585.99
Housing
2,473.35
2,219.59
8.12%
6.29%
5.05%
3.55%
2.61%
2.11%
1.90%
Pharmaceuticals
1,824.45
1.56%
Agriculture
1,785.80
1.53%
34,058.81
117,060.03
29.10%
100.00%
Deposit Mix
16,599.23
1,637.55
Others
Total
14.18%
29.10%
13.31%
8.12%
1.40%
1,811.06
7.75%
6.29%
1.53%
5.05%
1.55%
1.56%
3.55%
1.90% 2.11% 2.61%
1.55%
1.40%
Garments
Engineering (Iron and Steel/Electrical)
Trade Finance
SME
Food, Beverage, Edible Oil, etc.
Housing
Textile
Transportation
Paper & Publications
Hospital & Medical Services
Pharmaceuticles
Plastic & Plastic Materials
Agriculture
Jute Industries
Others
Import Trade
10.22%
6.30%
3.91%
39.28%
7.50%
32.79%
Other Deposits
Like before, this year also MBL has exhibited quality financing
while facilitating import trade. During the year, the Bank
handled a total of BDT 107,089.70 million of Import business
compared to BDT 100,685.60 million of the year 2013. The
Bank is engaged in opening Letter of Credit in different
sectors including machineries, garments & accessories,
wheat, sugar, CDSO, vegetable oil, cement clinkers, hot roll
steel, raw cotton, ships-breaking industries etc.
Export Trade
66
www.mblbd.com
In 2014
Components
Amount % of Total
Loans and
Advances
Investments
Cash
12,894.26
Balance with
other Banks
Other Assets
(including
Fixed Assets)
Total
In 2013
% of
Amount
Total
7.65% 10,402.42
7.18%
742.38
0.44%
917.82
0.65%
5,593.37
3.32%
5,742.53
3.96%
0.44%
7.65%
3.32%
Loans & Advances
19.10%
Investments
Cash
Balance with other Banks
69.48%
Other Assets
(including Fixed Assets)
Capital
The Authorized Capital of the Bank stood at BDT
12,000.00 million of 1,200,000,000 Ordinary Shares of
BDT 10 each as on December 31, 2014. Paid-up Capital
of the Bank was BDT 7,391.57 million of 739,156,701
Ordinary Shares, face value of BDT 10 each and listed in
both Dhaka and Chittagong Stock Exchanges.
Statutory Reserve
During the period under review the Bank transferred
BDT 457.70 million to Statutory Reserve as 20% of the
profit after provisions before tax as per Section 24 of the
Bank Companies Act, 1991. The total amount of Statutory
Reserve stood at BDT 4,223.12 million at the end of 2014.
Capital Adequacy
As per new risk based capital adequacy framework,
MBL has adopted Basel II in the Bank. As per Basel II
principles, Capital Adequacy Ratio (solo basis) of the Bank
stood at 12.95% as on December, 2014 against minimum
requirement of 10%.
Capital Adequacy
(BDT in million)
Core Capital (Tier I)
12,427.74
Paid-up Capital
7,391.57
Statutory Reserve
4,223.12
Retained Earnings
767.37
Dividend Equalization Account
45.68
Supplementary Capital (Tier II)
General Provision
Exchange Equalization Account
Revaluation Reserve for Assets
Revaluation Reserve for Equity Investment
Revaluation Reserve for Securities
Subordinate debt
Total Capital
Total Risk-Weighted Assets (RWA)
Capital Adequacy Ratio
6,676.21
3,130.49
321.81
223.91
3,000.00
19,103.95
147,484.30
12.95%
8.43%
4.52%
14,748.43
4,355.52
67
Directors' Report
Year
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
No. of
4,459
Shareholders
5,199
5,868
6,692
8,246
12,416
40,283
41,427
44,117
44,462 42,176
Share Holding
2005 37.50% 5,625,000.00
2006
2007
2008
2009
2010
5.00%,
33.33% B
15%,
25% B
15%,
20% B
10%,
100% B
35%,
65% B
750,000.00
- 150,000.00 1,500,000.00
2,250,000.00
15,750,000.00
2011
25%B
2012
30%B
Total
2012
17
40
11
Year
2013
25
34
09
2014
17
44
11
03
External Auditors
Capital Gain:
Mercantile Bank Ltd received 50,000 shares as stock
dividend of IDLC Finance Limited in the year 2006. In the
year 2007 we realized capital gain of BDT 59,650,000.00
after completion of sale of 50,000 bonus share.
annual report 2014
Total Receipt:
68
The Bank
across the
number of
December
relationship
banks. The
638 as on
Through its
www.mblbd.com
(BDT in million)
Mobile Banking
16,758.21
11,385.39
Information Technology
From inception, MBL has always been moving with
the latest technology and time-to-time the bank has
adopted different advantages of the technology to enrich
its IT infrastructure and to cope with the ever changing
customer needs. The role and importance of Information
Technology in the banking industry cannot be overemphasized. Technological innovation is adding value
5,372.82
2,623.20
7,996.02
3,585.45
Operating profit
4,410.57
Total Income
Total income of the Bank stood at BDT 19,381.41 million
in 2014 from BDT 19,090.71 million in 2013. Interest
income accounted for 86.46%, exchange gains 4.00%,
commission 4.02% and other income 5.52% to total
income in 2014 as against 86.90%, 3.53%, 4.11% and
5.46% respectively in 2013.
69
Directors' Report
Total Income
Amount
16,758.21
773.43
779.15
1,070.63
19,381.41
Interest Income
Exchange Gains
Commission
Other Income
Total
Interest Expenses
(BDT in million)
% of Total
86.46%
4.00%
4.02%
5.52%
100.00%
(BDT in million)
Components
Interest on Deposits
4.02%
5.52%
4.00%
97.88%
2,773.71
16.55%
142.82
0.85%
Total
16,758.21
100.00%
16.55%
0.85%
Interest on Loans and
Advances
0.01%
195.00
1.71%
Interest on Secondary
Treasury Bill Purchased
86.46%
Components
1.63
Interest on Refinance
from BB
Other Income
(BDT in million)
% of
Amount
Total
13,841.68
82.60%
0.40%
Interest on Deposits
Commission
Interest Income
97.88%
45.22
11,385.39 100.00%
Exchange Gains
11,143.54
0.40%
1.71%
0.01%
Interest Income
Interest Income
Amount % of Total
Interest on subordinate
Bond
(BDT in million)
Components
82.60%
Amount
% of Total
Exchange gains
773.43
29.48%
Commission
779.15
29.70%
22.32
0.85%
Interest Expenses
Income on Investment
1,048.30
39.96%
Total
2,623.20
100.00%
70
www.mblbd.com
29.48%
39.96%
Exchange gain
Commission
Other non-interest
income
29.70%
Total Expenses
The total expenses of the Bank stood at BDT 14,970.84
million during 2014 as compared to BDT 14,835.02 million
during 2013. Interest expenses accounted for 76.05%,
salaries and allowances 11.94%, rent, rates, taxes etc.
3.20%, depreciation and repairs 1.79%, stationary,
printing and advertisements 1.37%, postage, stamp and
telecommunication 0.35%, and other expenses 5.30% of
total expenses in 2013 as against 79.51%, 9.63%, 2.90%,
1.57%, 1.01%, 0.36% and 5.02% respectively in 2013.
Total Expenses
Particulars
Interest Expenses
Total Expenses
1.37%
1.79%
3.20%
Amount
1,787.53
Income on Investment
0.85%
Particulars
479.33
267.92
5.70%
52.39
1.46%
22.14%
100.00%
49.86%
7.47%
13.37%
(BDT in million)
Amount
11,385.39
1,787.53
479.33
% of Total
76.05%
11.94%
3.20%
267.92
1.79%
204.40
1.37%
52.39
0.35%
793.88
5.30%
100.00%
Intrest Expenses
Salaries and Allowances
Rent, Rate, Taxes etc
Depreciation and Repairs
76.05%
7.47%
793.88
3,585.45
1.46%
5.70%
0.35%
11.94%
11.11%
13.37%
Other Expenses
14,970.84
5.30%
49.86%
204.40
Total Expenses
22.14%
% of Total
Non-interest Expenses
Non-interest expenses moved up from BDT 3,039.26
million in 2013 to BDT 3,585.45 million in 2014. Salaries
and allowances 49.86%, rent, rates, taxes etc. 13.37%,
depreciation and repairs 7.47%, stationary, printing
and advertisements 5.70%, postage, stamp and
telecommunication 1.46%, and other expenses 22.14%
of total expenses in 2014 as against 47.00%, 14.17%,
7.64%, 4.90%, 1.77% and 24.52% respectively in 2013.
(BDT in million)
Interest Income
16,758.21
Interest Expenses
11,385.39
5,372.82
2,623.20
3,585.45
(962.25)
4,410.57
Provisions
Provision Un-classified Loans
1,552.49
484.53
84.25
2,288.51
1,100.00
1,188.51
71
Directors' Report
Dividend
The Board of Directors recommended 10% cash dividend
for the year 2014. The Bank paid out 20% dividend (8%
cash & 12% stock) to the shareholders in 2013.
Earnings Per Share (EPS)
Since the inception and enlistment in Stock Exchange, the
Bank has been making positive EPS. Earnings per share
stood at BDT 1.61 as on December31, 2014 against BDT
2.68 as on December 31, 2013.
Operating Efficiency Ratio
Operating Efficiency Ratio stood at 77.24% in 2014
as against 77.71% in 2013. This measures how much
operating expenses are incurred to generate operating
revenues.
(BDT in million)
Operating Efficiency Ratio
2014
2013
Total Expenses
14,970.84
14,835.02
Total Income
19,381.41
19,090.71
77.24%
77.71%
72
www.mblbd.com
73
Directors' Profiles
74
www.mblbd.com
75
Directors' Profiles
76
www.mblbd.com
77
Directors' Profiles
78
www.mblbd.com
79
Directors' Profiles
80
www.mblbd.com
81
Directors' Profiles
82
www.mblbd.com
83
Directors' Profiles
84
www.mblbd.com
Management
Discussion and Analysis
World Economy
The global economy is still struggling to gain momentum
as many high-income countries continue to grapple with
the legacies of the global financial crisis and emerging
economies are less dynamic than in the past. After
rising marginally in 2014 to 2.6 percent, World GDP is
now expected to grow at 3.0 percent in 2015 and 3.3
percent in 2016, supported by gradual recovery in
high-income countries, low oil prices, and receding
domestic headwinds in developing countries. Developing
economies are expected to see an increase in growth
from 4.4 percent in 2014 to 4.8 percent and 5.3 percent
in 2015 and 2016, respectively.
A sluggish global recovery still continues. The recovery
in the US is broadening on the back of stronger domestic
consumption, rising investment, and industrial activity.
In the Euro area, headwinds from necessary forces
continue to weaken industrial production and investment
sentiment. Growth may be picking up in Japan, again on
the back of stronger exports, aided partially by further
quantitative easing that led to a depreciation of the yen.
In china, poor activity along with low inflation prompted
rate cuts by the Peoples Bank of China. In other
major emerging market economies, downside risks to
growth from elevated inflation, low commodity prices,
deteriorating labor market condition, and sluggish
domestic demand have become accentuated. Broadly,
in advanced economies, the legacies of the pre-crisis
boom and the subsequent crisis still cast a shadow on
the recovery. Emerging markets are adjusting to rates of
economic growth lower than those reached in the precrisis boom and the post crisis recovery. Overall, the pace
of recovery is becoming more country specific.
The current juncture presents a window of opportunity
for reform. The sharp decline in oil prices means
that policymakers could implement subsidy and tax
reforms to help rebuild fiscal space or finance better
targeted pro-poor policies while removing distortions
that hinder activity.
Bangladesh Economy
The overall economic condition of the country in 2014 was
pretty much on track amidst looming uncertainties both on
the domestic and world economic fronts which indicates
that our domestic economy has developed the resilience
to protect itself from the onslaught of unexpected events.
The economy achieved 6.12% growth, despite few non-
85
86
Operating Prot
(BDT in Million)
4,255.70
3,501.68
3,350.78
2011
2012
2,847.12
2010
2013
4,410.57
2014
1.86%
1.70%
Return on Assets
1.33%
1.03%
2010
2011
2012
0.76%
2013
2014
www.mblbd.com
Return on Equity
24.83%
(BDT in Million)
20.59%
13.42%
117,060.03
16.84%
9.11%
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
Deposits
(BDT in Million)
3.58%
2.93%
79,999.80
97,688.50
DEPOSITS
3.59%
66,377.70
93,610.87
132,093.64
3.82%
124,566.97
140,475.84
102,262.02
2.99%
75,629.14
2010
2011
2012
2013
2014
2010
2011
2012
87
2013
2014
44.84%
42.62%
2013
2014
Variance
16,590.37
16,758.21
1.01%
21.47
22.32
3.96%
Commission, Exchange
and Brokerage
1,457.89
1,552.57
6.49%
1,020.98
1,048.31
2.68%
Total Income
19,090.71
19,381.41
1.52%
Interest Income
41.66%
40.38%
2010
INCOME
Investment Income
2011
2012
2013
2014
COST OF DEPOSITS
It measures the extent of interest expenses on the interest
bearing deposits.
Attainment : Cost of Deposits came down significantly to
8.26% in 2014 from 8.93% in 2013 which is the result of
our efforts to rationalize the interest expenses against our
different deposit products without having adverse impact
on the deposit/liquidity base.
Cost of Deposit
9.63%
10.02%
8.93%
7.94%
8.26%
EXPENSES
In 2014, we made all-out effort to efforts to reduce the
cost of deposit. As a result, interest expenses of the Bank
reduced by 3.48%. The overall expenses increased by
0.92% than 2013. Total expenses recorded for 2014 was
BDT 14,970.84 million as against that of BDT 14,835.02
million in 2013.
Particulars
2014
Interest Expenses
11,795.76
11,385.39
-3.48%
3,039.26
3,385.45
17.97%
Total Expenses
14,835.02
14,970.84
0.92%
Particulars
2011
2012
88
2013
2014
Variance
2010
(BDT in Million)
2013
2013
2014
Variance
1,428.29
1,787.53
15.35%
9.85
11.69
18.68%
Directors Fees
2.79
2.75
-1.43%
11.28%
430.76
479.33
Legal Expenses
12.54
12.72
1.44%
53.64
52.39
-2.33%
148.9
204.39
37.27%
Auditors Fees
0.68
0.60
11.96%
232.3
267.92
15.33%
Other Expenses
719.58
766.13
6.46%
3,039.26
3,585.45
17.97%
www.mblbd.com
Profitability
(BDT in Million)
Vari2014
ance
2013
Interest Income
16,590.37
16,758.21
1.01%
11,795.76
11,385.39
-3.48%
4,794.61
5,372.82
12.06%
2,500.35
2,623.20
4.91%
7,294.96
7,996.02
9.61%
3,039.26
3,585.45
17.97%
Operating Profit
4,255.70
4,410.57
3.64%
Total Provision
1,027.00
2,122.06
106.63%
3,228.70
2,288.51
1,250.00
1,978.70
(BDT in Million)
2013
Cash
2014
Variance
10,402.41
12,894.26
23.95%
917.82
742.37
-19.11%
Investments
30,090.60
32,184.09
6.96%
97,688.50
117,060.03
19.83%
-29.12%
3,097.60
3,198.11
3.24%
1,100.00
-12.00%
Other Assets
2,644.93
2,395.27
-9.43%
1,188.51
-39.93%
2013
2014
1.33%
0.76%
16.84%
9.11%
41.66%
44.84%
3.58%
3.82%
Loans and
Advances
70%
Balance with
Other Assets
other Bank
Fixed Assets
1%
and F1
Including
cash 8%
Premises, Furnit
ure and Fixtures
Investments
19%
2%
58,300.49
117,060.03
Funded Business
89
Loan Portfolio
DEPOSIT MIX
6%
4%
39%
8%
33%
8%
14%
10%
13%
19%
1%
2%
Fixed Deposits
Savings Deposits
5%
Current Deposits
Other Deposits
6%
2%
1%
4% 1 3%
%
2% 2%
0%
2%
1% 2%
4%
1%
8%
0%
0%
Garments
Engineering
Leasing Company
Food, Food Products, Beverage
Trading
Contractor Finance
Housing
Pharmaceuticals
Telecommunication
Transport
Jute Industries
Information Technology
Paper, Paper Production
and Publications
Storage
SME Loan
Consumer Loan
Others
Liabilities
In 2014, MBL continued efforts to restructuring its deposits
mix and thereby reducing cost of deposits in the backdrop
of surplus liquidity hangover in the banking sector. We
focused on procuring more no and low cost deposits. As
a measure of rationalization of our intermediation cost of
Deposits decreased to 8.26% as on December 2014 as
compared to 8.93% of previous year. This spectacular
deposits cost cut contributed to attain 6.93%% growth in
operating profit amidst the gloomy business environment
followed by uncertain political situation over the year 2014.
Particulars
2013
2014
Variance
Deposit Under
Schemes
50,214.55
55,176.86
9.88%
Fixed Deposits
41,945.69
46,057.22
9.80%
Savings Deposits
8,510.14
10,534.22
23.78%
Current Deposits
4,105.43
5,494.16
33.83%
7,795.86
8,850.41
13.53%
11,995.30
14,362.97
19.74%
124,566.97
140,475.84
12.77%
Other Deposits
Total
90
www.mblbd.com
Target
Disbursement
Achievement
Unachieved
Portion
2010-2011
470.00
126.60
26.93%
343.40
2011-2012
1,430.00
1,254.90
87.75%
175.10
2012-2013
1,755.10
1,757.20
100.12%
2013-2014
1,650.00
1,671.64
101.31%
2014-2015*
1,900.00
1,054.50
55.50%
* up to January 2015
Home Loan
Cottage Loan
Car Loan
Any Purpose Loan
House Furnishing Loan
Doctors Loan
Education Loan
Prantik Loan
91
International Division
Foreign Correspondents: MBL has been maintaining
smooth correspondent relationship with as many as
637 top ranked and best rated banks covering 64 (Sixty
Four) countries across the world. Furthermore, as part
of continuous endeavor to expand the correspondent
network, MBL has been continuously establishing RMA
with best rated banks having sound fundamentals around
the globe to facilitate its increasing foreign trade business.
Foreign correspondents play a vital role in trade finance
through advising, adding confirmation, discounting bills
etc. Commerzbank AG, JP Morgan Chase Bank, Wells
Fargo Bank NA, Standard Chartered Bank, Bank of Tokyo
Mitshubishi Ltd, HSBC, Mashreqbank Psc, Habib Bank AG
Zurich, UBAF, Unicredito Italiano Spa, Banca UBAE etc.
are some of the major Foreign Correspondents of MBL.
Off-shore Banking: At present Mercantile Bank Limited
is operating two Off-shore Banking Units, as a separate
business unit in compliance with the Rules and Guidelines
of Bangladesh Bank under their permission letter no.
BRPD(P-3)744(114)/2010-1743 dated 04/05/2010. The
Bank has commenced operation through these units
since July 04, 2010 at its Gulshan Branch, Dhaka and
CEPZ Branch, Chittagong. Since inception, MBLs OBU
unit is exhibiting excellent growth trend by dint of efficient
and effective customer services. As on December 31,
2014 total loans and advances of OBUs reached to USD
13.82 million equivalents to BDT 1,077.42 million. During
the year 2014, OBUs made net profit of USD 0.46 million
equivalent to BDT 36.09 million as against USD 0.23
million equivalent to BDT 18.09 million in 2013 registering
remarkable growth of 100% in 2014 over 2013.
CARD BUSINESS
MBL started Card and ATM operation in 2002 by
participating in a Local network Q-Cash consortium aiming
to extend modern banking facilities to its customers.
In 2006 MBL becomes the principal member of VISA
International and started issuing VISA cards. Since
inception, the Bank launched different card products
including Credit card, Debit Card and Prepaid Cards.
Presently, MBL has three types of Credit Cards - Local,
International and Dual in three categories- Platinum, Gold
and Classic. MBL has prepaid Cards also of thee typeslocal, International and Dual. In 2013 MBL launched
three new pre-paid products - MBL VISA Medical Card for
Bangladeshi nationals visiting abroad for treatment, MBL
VISA International Student card for the students going
different countries for higher education, MBL VISA Virtual
card for individual who needs to use the number only for a
specific E-commerce transaction. As on December 2014,
Card base of MBL is around 5,600 credit cards having
outstanding about BDT 270.00 million and around 73,000
debit & Pre-paid cards.
MBL expanded ATM network throughout the country
located at different important places to serve the customer
outside the Bank premises. At the end of the year 2014,
annual report 2014
92
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93
Lease Finance
94
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95
PILLAR I
Minimum
Capital
Requirement
PILLAR II
Supervisory
Review
Process
PILLAR III
Market
Discipline
Disclosure on
Basel II
Overview
The Basel Committee on Banking Supervision published
a framework for international convergence of capital
measurement and capital standards commonly termed
as Basel II which replaced the original 1988 Basel I
accord. In Bangladesh, Risk Based Capital Adequacy for
Banks (Revised regulatory capital framework in line with
Basel II) came into force fully from January 2010 following
the BRPD circular # 20 on December 29, 2009 after parallel
existence with Basel I during the year 2009.
MBL believes that Basel II is not merely a reporting
system rather it is a new risk management technique
for the Bank. Therefore, it has put extensive care and
attention to implement Basel II inside the Bank. With a
view to facilitating the way of implementation, the Bank
has formed a high powered committee under the heading
of Basel II implementation Unit. This committee forecast
the future; follow up the overall implementation status and
way out the probable solution to cope with the international
best practices and to make the banks capital more risk
sensitive as well as more shock resilient. The Bank has
also formed a Supervisory Review Process (SRP) team
to participate the dialogue with the Supervisory Review
Evaluation Process (SREP) team of BB for measuring the
adequate capital requirement.
annual report 2014
96
www.mblbd.com
Disclosure Framework
The following detailed qualitative and quantitative disclosures of the Bank is furnished to provide our stakeholders with
consistent and understandable disclosure framework to assess the Banks position regarding holding of assets and to
identify the risks relating to the assets and capital adequacy to meet probable loss of assets as on December 31, 2014 in
line with Bangladesh Banks Risk Based Capital Adequacy (RBCA) guideline.
a) Scope of application
Qualitative Disclosures
(a)
(b)
An outline of difference in
the basis of consolidation for
accounting and regulatory
purposes,
with
a
brief
description of the entities
within the group (a) that are
fully consolidated ; (b) that are
given a deduction treatment
; and (c) that are neither
consolidated nor deducted
(e.g. where the investment is
risk-weighted).
(c)
Not applicable.
Quantitative Disclosures
(d)
Not applicable.
97
Disclosure on Basel II
b) Capital Structure
Qualitative Disclosures
(a)
Conditions set by BB for maintaining Regulatory Capital i.e. Tier 1 capital, Tier
2 capital and Tier 3 capital are as under:
a) The amount of Tier 2 capital will be limited to 100% of the amount of Tier 1 Capital.
b) 50% of revaluation reserves for fixed assets and securities eligible for Tier 2 Capital.
c) Subordinated bond shall be limited to a maximum of 30% of the amount of Tier 1 Capital.
d) Limitation of Tier 3: A minimum of about 28.50% of Market risk needs to
be supported by Tier 1 Capital. Supporting of Market Risk from Tier 3 Capital
shall be limited up to maximum of 250% of a Banks Tier 1 Capital that is
available after meeting credit risk capital requirement.
Particulars
Consolidated
BDT in Crore
i.
Paid Up Capital
739.15
739.15
ii.
Statutory Reserve
422.31
422.31
iii.
iv.
General Reserve
v.
Retained Earning
76.74
75.76
vi.
5.26
vii.
viii.
4.57
4.57
ix.
1,242.77
1,247.05
667.62
i.
667.62
ii.
667.62
667.62
0.42%
Statutory Reserve
Minority Interest In
Subsidiaries
Retained Earning
Dividend Equilization
Account
6.08%
33.86%
0.37%
59.27%
1,914.67
44.95%
46.87%
General Provision
(Unclassified loan + OffBalance Sheet exposure)
Assets Revaluation
Reserves up to 50%
4.82%
3.36%
98
1,910.39
35%
Tier 1
65%
Tier 2
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c) Capital Adequacy
Qualitative Disclosures
(a)
The Banks CAR on the basis of Consolidated and Solo are 12.96% and
12.95% respectively against minimum requirement of 10% as on December
31, 2014. MBLs policy is to manage and maintain its capital at an adequate
level to raise its CAR well above than minimum requirement in line with Basel
II. Ultimate goal of the capital management process of MBL is to ensure
that the Bank maintains its capital base at a level to absorb all the material
risks. The Bank also ensures that the capital levels comply with all regulatory
requirements.
Quantitative Disclosures
Solo
Particulars
Consolidated
BDT in Crore
(b)
12,833.42
12,857.77
(c)
669.72
669.73
(d)
1,245.30
1,249.35
(e)
12.95%
12.96%
Tier-1 CAR
8.43%
8.44%
Tier-2 CAR
4.52%
4.52%
Required
10.00%
Required
12.96%
Maintained
Maintained
99
Disclosure on Basel II
d) Credit Risk
Qualitative Disclosures
(a)
The general qualitative disclosure requirement with respect to credit risk, including:
i) Definition of past due and
impaired
(for
accounting
purposes);
As per guideline of Bangladesh Bank, All Loans and Advances are grouped
into 4 (four) categories namely- Continuous Loan, Demand Loan, Fixed Term
Loan and Short-Term Agricultural Credit & Micro Credit for the purpose of
classification.
Any continuous Loan will be classified as:
Doubtful- if it is past due/overdue for 06 (six) months or beyond but less than
09 (nine) months
Bad/Loss- if it is past due/overdue for 09 (nine) months or beyond.
Any Demand Loan will be classified as:
Doubtful- if it remains past due/overdue for 06 (six) months or beyond but not
over 09 (nine) months from the date of expiry or claim by the bank or from the
date of creation of forced loan.
Bad/Loss- If the amount of past due installment is equal to or more than the
amount of installment(s) due within 12 (twelve) months, the entire loan will be
classified as Bad/Loss.
Doubtful-If the amount of past due installment is equal to or more than the
amount of installment(s) due within 06 (six) months, the entire loan will be
classified as Doubtful.
Bad/Loss- If the amount of past due installment is equal to or more than the
amount of installment(s) due within 09 (nine) months, the entire loan will be
classified as Bad/Loss.
Short-Term Agricultural Credit & Micro Credit:
100
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General and
Particulars
Rate
(%)
0.25%
1%
5%
2%
2%
1%
20%
Doubtful
50%
Bad/Loss
100%
5%
Bad/Loss
iii) Discussion of the Banks
credit risk management policy
100%
The Bank bas adopted numerous strategies to manages its credit risk
including:
Creating credit risk awareness culture
Approved credit policy by the Board of Directors
Separate credit risk management division
Formation of law and recovery division
Formation of Recovery Team with Senior Executives
Independent internal audit and direct access to Board/Audit committee
Credit quality and portfolio diversification
Early warning system
Provision and suspension of interest
Scientific lending and credit approval process
Counterparty credit rating
Strong NPL management system
101
Disclosure on Basel II
Quantitative Disclosures
(b)
Total gross credit risk exposures Total Gross Credit Risk exposures broken down by major types of credit exposure
broken down by major types of as on December, 2014 is as under:
Particulars
BDT in Crore
credit exposure.
Loan General
206.11
Term Loan
Time Loan
Home Loan
Packing Credit
1,460.74
906.87
99.67
533.56
0.72
115.56
291.46
Hire Purchase
680.06
Lease Finance
EDF Loan
Overdraft
Personal Loan
Staff Loan
Credit Card
Agricultural Credit
(c)
2,495.24
100.06
453.88
46.48
1,136.13
2,166.55
32.43
2.30
1.19
65.18
26.42
178.58
521.77
185.04
Total
11,706.00
Geographical distribution of Geographical Distribution of total exposure as on December, 2014 is as under:
exposure, broken down in
Particulars
BDT in Crore
significant areas by major types
of credit exposure
Urban:
Dhaka
Chittagong
Rajshahi
Sylhet
Khulna
Rangpur
Barisal
Sub-Total (A)
Rural:
Dhaka
Chittagong
Rajshahi
Sylhet
Rangpur
Sub-Total (B)
102
8,065.48
2,166.37
680.87
72.63
87.99
169.86
75.58
11,318.78
133.54
166.26
67.49
3.66
16.27
387.22
11,706.00
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(d)
(e)
(f)
95.69
Demand Loan
140.63
Term Loan
246.17
0.67
Total
ii) Specific and general
provisions; and
483.16
BDT in Crore
254.48
240.51
58.30
103
Disclosure on Basel II
155.25
Gross non-performing
assets (NPAs):
48.53
8.42
BDT in Crore
4.12%
465.97
49.56
Reductions
31.20
Closing Balance
484.33
242.50
2.48
52.89
Write-off
52.40
240.51
The general qualitative disclosure requirement with respect to equity risk, including:
(a)
104
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Quantitative Disclosures
Particulars
(b)
Value disclosed in the balance sheet of investment, as well as the fair value of
those investments; for quoted securities, a comparison to publicly quoted share
values where the share price is materially different from fair value.
Quoted shares
(c)
(d)
Un Quoted shares
The cumulative realized gain (losses) arising from sales and liquidations in the reporting periods.
Realized gain (losses) from equity investments
60.03
186.37
186.37
1.29
1.29
79.15
139.19
139.19
139.19
139.19
13.92
Qualitative Disclosures
The
general
qualitative
disclosure
requirement including the nature of IRRBB
and key assumptions, including assumptions
regarding loan prepayments and behavior
of non-maturity deposits, and frequency of
IRRBB measurement.
Quantitative Disclosures
g) : Market Risk
Quantitative Disclosures
13.92
13.92
(a)
60.03
(b)
BDT in Crore
(a)
Consolidate
79.15
(e)
Solo
13.92
Increase of Interest Rate will affect the Bank in the following ways:
Particulars
Minor
Shock
Magnitude of Shock
Duration Gap (Years)
Total Regulatory Capital (BDT in Cr)
Risk Weighted Assets
CAR
Revised Capital (After Shock)
Revised RWA
Revised CAR (%)
1%
0.46
1,910.39
14,748.43
12.95%
1,832.66
14,396.80
12.73%
Moderate
Shock
2%
0.46
1,910.39
14,748.43
12.95%
1,761.11
14,396.80
12.23%
Major
Shock
3%
0.46
1,910.39
14,748.43
12.95%
1,689.56
14,396.80
11.74%
Market Risk is the possibility of losing assets in balance sheet and off-balance
sheet positions arising out of volatility in market variables i.e. interest rate,
exchange rate and price. Total capital requirement for MBL against its market
risk is the sum of the following
i) Interest Rate risk
ii) Equity position risk
iii) Foreign Exchange risk
iv) Commodity risk
All the Market Risk related policies/guidelines are duly approved by BOD.
The BOD sets limit, review and update the compliance on regular basis
aiming to mitigate the Market risk.
In order to calculate the market risk for trading book purposes the Bank uses
105
Disclosure on Basel II
Market risk
Standardized (rule based) Approach where capital charge for interest rate
risk, price and foreign exchange risk is determined separately. For instance,
MBLs total market risk is calculated as below:
i)
Capital Charge for interest Rate Risk = Capital Charge for Specific
Risk + Capital Charge for General Market Risk.
ii) Capital Charge for Equity Position Risk = Capital Charge for Specific
Risk + Capital Charge for General Market Risk.
iii) Capital Charge for Foreign Exchange Risk = Capital Charge for
General Market Risk.
iv) Capital Charge for Commodity Position Risk = Capital Charge for
General Market Risk.
Treasury Division and International Division manage the Market Risk with the
help of Asset Liability Committee (ALCO) and Asset Liability Management
(ALM) Desk.
106
has been given on Loan Deposit Ratio, Whole Sale Borrowing Guidelines,
Medium Term Funding, Maximum Cumulative Outflow, Liquidity Contingency
Plan, Local Regulatory Compliance, Recommendation / Action Plan etc.
Furthermore, special emphasis has been put on the following issues for
mitigating market risk:
Interest Rate Risk Management
Market analysis over interest rate movements are reviewed by the Treasury
Division of the Bank. The type and level of mismatch interest rate risk of the
Bank is managed and monitored from two perspectives, being an economic
value perspective and an earning perspective.
Gap Analysis
ALCO has established guidelines in line with central Banks policy for the
management of assets and liabilities, monitoring and minimizing interest rate
risks at an acceptable level. ALCO in its regular monthly meeting analyzes
Interest Rate Sensitivity by computing GAP i.e. the difference between Rate
Sensitive Assets and Rate Sensitive Liability and take decision of enhancing
or reducing the GAP according to prevailing market situation aiming to
mitigate interest rate risk.
Foreign Exchange Risk Management
Risk arising from potential change in earnings resulted from exchange rate
fluctuations, adverse exchange positioning or change in the market prices
are considered as Foreign Exchange Risk. Treasury and International
Division manage this risk in the following fashion:
Continuous Supervision
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Quantitative Disclosures
Solo
Particulars
23.29
23.29
27.84
27.84
15.84
15.84
66.97
66.97
Commodity Risk
h) : Operational Risk
Qualitative Disclosures
(a)
Consolidate
BDT in Crore
Transaction processing
Operation control
Technology and systems
Risks of physical and logical security
Unique risk arises due to outsourcing
107
Disclosure on Basel II
Quantitative Disclosure
(b)
charge
for
Solo
Particulars
Capital requirements for
capital
108
124.53
BDT in Crore
Consolidate
124.93
CROs Report on
Risk Management
Risk is the possibility that outcome of an action or event
may leads to entails certain magnitude of risk elements
but at the same time bank cannot be risk averse. Being
a financial intermediary, banking business is always
exposed to multi dimensional risks including systemic
one. Therefore, risks must be measured and managed
adroitly in order to ensure sustainable growth. Proper risk
management culture facilitates identification, measurement
and monitoring of risks in the right perspective towards
securing the interest of the bank.
Risk Monitoring
Risk-Return Trade-off
Fig: Risk Management Process of MBL
109
110
RISK
MANAGEMENT
www.mblbd.com
Equity Price
Risk
General Risk
MBLS EQUITY
STRATEGIES
Specific Risk
PRICE
RISK
MANAGEMENT
Investment Policy
diversification
emphasizing
on
Portfolio
111
Board of Directors
Head of Monitoring
Units
112
Head of Internal
Control & Compliance
Head of Compliance
Units
by
MANAGING INFORMATION
TECHNOLOGY RISK
IT risk is the process of managing the risk associated with
implementation of new technology. If a new technology
is not compatible with business function of the company,
the company may suffer eventually. IT risk is the business
risk associated with the use, ownership, operation,
involvement, influence and adoption of IT within an
enterprise. Risks surrounding Information Technology,
such as network failure, software failure, lack of skills,
hacking and viruses and poor system integration poses
threat for the organization.
IT risk of the Bank is addressed by initiating appropriate
measures within the clear cut policies and procedures as
well as defining roles and responsibilities of all relevant
officials; dedicated IT audit team as per the central banks
guidelines to conduct audit at branch and divisional
levels; Segregated job descriptions and responsibilities
to minimize IT Risk; Need based trainings are being
conducted time to time to grip the IT Risk in an efficient
manner. MBL protects and secures its data in various ways.
Data is kept in secured place prescribed by the Banks
policy. Furthermore, MBL has adopted TEMENOS T24,
one of the highly sophisticated real time banking software
with a view to ensuring superior customer services and
at the same time controlling technology related hazards.
State of Art Data Centre and Disaster Recovery Site (DRS):
MBL procured and implemented state of the art Hardware,
Software and system in its data centre and Disaster
Recovery Site keeping in mind future scalability, efficiency,
fault tolerance and high availability. The environmental
security features of the data centre and DRS have been
provided high priority. The network system of the Bank
has been reconfigured with latest technologies for highest
availability, efficiency and security.
www.mblbd.com
STRESS TESTING
Stress Testing is a risk management technique used to
evaluate the potential effects of an institutions financial
condition of a specific event and/or movement in a set of
financial variables. It refers to the process to cover multiple
risk measures across categories and complements
traditional risk models. It is also an integral part of the
Capital Adequacy Framework. The traditional focus of
stress testing relates to exceptional but plausible shocking
events. Each shocking events contains Minor, Moderate
and Major levels of shock.
MBL accomplish the quarterly Stress Testing covering
Credit Risk, Market Risk and Liquidity Risk in accordance
with Bangladesh Bank DOS (Department of Offsite
Supervision) circular # 01 dated February 23, 2011.
Post shock capital adequacy status at different shock
levels as per Stress Testing Report on 31 December 2014
is as under:
Stress Test: Sensitivity Analysis
Quarter: Q4
Year: 2014
10.00
12.95
113
Minor
Moderate
Major
Changes
in CA
CAR after
Shock
(%)
Changes
in CA
CAR after
Shock (%)
Changes
in CA
CAR after
Shock
(%)
-0.11
12.80
-0.34
12.57
-0.57
12.34
-0.06
12.85
-0.17
12.74
-0.29
12.62
-5.43
7.48
-7.50
5.41
-8.02
4.89
-0.06
12.85
-0.53
12.38
-0.78
12.13
-0.11
12.80
-0.22
12.68
-0.45
12.46
Interest Rate
-0.33
12.58
-0.65
12.26
-0.98
11.93
-0.01
12.90
-0.02
12.89
-0.03
12.88
Equity Shock
-0.15
12.76
-0.29
12.62
-0.59
12.32
Individual Shocks
Moderate
Major
Changes in CA
Changes in CA
Changes in CA
-0.11
-0.22
-0.45
Increase in NPLs
-0.50
-1.36
-3.18
-0.06
-0.53
-0.78
Interest Rate
-0.33
-0.65
-0.98
-0.01
-0.02
-0.03
Equity Shock
-0.15
-0.29
-0.59
Total Change
-1.16
-3.09
-6.00
11.75
9.82
6.91
Combined Shock
When all the shocks are considered together, Capital Adequacy Ratio (CAR) of MBL becomes 11.75%, 9.82% and 6.91%
respectively against minor, moderate and major levels of shock. So, the bank can absorb minor level of shock only when
all the shocks are considered together. However, for absorbing other levels of shock which is very unlikely in the industry,
the bank may require additional capital and reserve.
114
www.mblbd.com
We have examined the Statement of Compliance of Corporate Governance Guidelines issued by Bangladesh Securities &
Exchange Commission dated 7 August 2012 through Notification #. SEC/CMRRCD/2006-158/134/Admin/44, of Mercantile
Bank Limited for the year ended 31st December 2014, as has been produced before us for our examination by the Bank.
The compliance of conditions of Corporate Governance Guidelines is the responsibility of the Banks management. Our
examination was limited to the procedures and implementation thereof, adopted by the Bank for ensuring compliance
of the conditions of Corporate Governance Guidelines. It is a scrutiny and verification only and not an expression of an
opinion on the financial statements of the Bank.
In our opinion and to the best of our information and according to the explanations given to us, the Bank has complied with
the conditions of Corporate Governance Guidelines of Bangladesh Securities & Exchange Commission.
We state that such compliance is neither an assurance as to the future viability of the Bank nor the efficiency or effectiveness
with which the management has conducted the affairs of the Bank.
Suraiya Parveen, FCS
Membership No: F-98
115
116
Report on
Corporate Governance
Chairman
Board Composition
118
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Position
Chairman
Member
Mr. M. Amanullah
Mr. Md. Anwarul Haque
Mr. Md. Abdul Hannan
Position
Chairman
Member
Member
119
120
V. External Audit
Position
Chairman
Member
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Position
Responsibilities of MANCOM
121
122
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Position
Chairman
Member
Secretary
INVESTMENT COMMITTEE
Member
PURCHASE COMMITTEE
With a group of executives headed by a senior most
Executive, MBL Purchase Committee is functioning to
examine the procurement procedure of goods, services
or works whether it has been placed on the basis of
actual requirement and maintained necessary formalities
as per guidelines of the purchase policy. Among others,
the followings are the main responsibilities of Purchase
Committee of the Bank:
123
124
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Access of ICCD
Environmental Promotion
MBL always encourages projects which take care of
following points while financing them viz., (a) sustainable
development and use of renewable natural resources (b)
protection of human health, bio-diversity, occupational
health and safety, efficient production, delivery and use of
energy (c) pollution prevention and waste minimization.
The issue of climatic change is being addressed seriously
all over the world. MBL concentrates on environment
preservation by financing Projects in the field of renewable
energy, organic agriculture across the entire value chain
including health food shops and environment technology
such as recycling companies and nature conservation
projects.
EXCHANGE OF IDEAS WITH STAKEHOLDERS
Communication with Shareholders
MBL takes critically its corporate responsibility to provide
shareholders with the information necessary to form
an informed opinion of the Banks performance. Press
releases, interim and final results announcements, interim
and annual reports, and other information of interest
to shareholders are uploaded to Companys corporate
website www. mblbd.com. Half Yearly and Annual Reports
of the Bank are also sent to shareholders within the
respective deadlines stipulated by the regulatory bodies.
Communication with Employees
To enhance mutual understanding and promote
cooperation at all levels, the Board of Directors and
the senior management of the Bank always maintains
communication with the employees; discuss matters such
as safety and the work environment, as well as broader
issues relating to staff welfare.
Communication with the General Public
The Banks website www.mblbd.com serve as an easy
access for key information source for business, financials
and other relevant information about the businesses of the
Bank. In addition, from time to time, the Bank publishes
reports and information brochures which set out specific
aspects of the Banks operations for the general public.
Investors Friendly Essentials
MBLs share has better capital adequacy, good asset
quality, steady financial performance, comfortable liquidity,
strong market position and experienced Management.
So investment in it is reliable. Since inception, MBL is
declaring good dividends for the investors. MBL is also a
Corporate Shareholder of IDLC Finance Ltd., a growing
leasing company of the country, holding 7.50% of its total
shares.
125
Status of compliance with the condition imposed by the Bangladesh Securities and
Exchange Commission, Notification No. SEC/CMRRCD/ 2006-158/134/Admin/44
dated 07 August 2012 (Report under condition No. 7)
Condition
No.
Title
Status
1.
Board of Directors:
1.1
Boards Size: The number of the board members of the company shall not
be less than 5 (five) and more than 20 (twenty).
1.2
Independent Directors
At least one fifth (1/5) of the total number of directors in the companys
board shall be independent directors.
1.2(ii) a)
1.2(ii) b)
who is not a sponsor of the company and is not connected with the
companys sponsors or directors or shareholder who holds one percent
(1%) or more shares of the total paid-up shares of the company on the
basis of family relationship. His/her family members also should not hold
above mentioned shares in the company.
who does not have any other relationship, whether pecuniary or otherwise,
with the company or its subsidiary/associated companies
1.2(ii) d)
1.2(ii) e)
1.2(ii) f)
1.2(ii) g)
1.2(ii) h)
1.2(ii) i)
1.2(ii) c)
Who has not been convicted for a criminal offence involving moral turpitude
1.2(iii)
1.2(iv)
The post of independent director(s) cannot remain vacant for more than
90 (ninety) days.
1.2(v)
The Board shall lay down a code of conduct of all Board members and
annual compliance of the code to be recorded.
1.2(vi)
1.3
`1.3 (i)
1.3 (ii)
1.3 (iii)
126
No such incidence
arose
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Condition
No.
1.4
1.5
Title
Status
The positions of the Chairman of the Board and the Chief Executive Officer
(CEO) of the companies shall be filled by different individuals. The Chairman
of the company shall be elected from among the directors of the company. The
Board of Directors shall clearly define respective roles & responsibilities of the
Chairman & the Chief Executive Officer (CEO)
1.5(i)
1.5(ii)
1.5(iii)
1.5(iv)
A discussion on Cost of Goods sold, Gross Profit Margin and Net Profit
Margin
No such incidence
arose
1.5(v)
1.5(vi)
1.5(vii)
1.5(viii)
N/A
1.5(ix)
N/A
N/A
1.5(x)
1.5(xi)
1.5(xii)
1.5(xiii)
1.5(xiv)
1.5(xv)
1.5(xvi)
There are no significant doubts upon the issuer companys ability to continue as
a going concern. If the issuer company is not considered to be a going concern,
the fact along with reasons thereof should be disclosed.
1.5(xvii)
Significant deviations from the last years operating results of the issuer company
shall be highlighted and the reasons thereof should be explained.
1.5(xviii)
Key operating and financial data of at least preceding 5 (five) years shall
be summarized
1.5(xix)
If the issuer company has not declared dividend (cash or stock) for the
year, the reasons thereof shall be given
N/A
1.5(xx)
The number of Board meetings held during the year and attendance by
each director shall be disclosed.
127
Condition
No.
Title
Status
1.5(xxi)
1.5(xxi) a)
1.5(xxi) b)
1.5(xxi) c)
Executives;
[Explanation: Executive means top 5 salaried employees of the
company, other than the Directors, CEO, Company Secretary , CFO and
Head of Internal Audit.
1.5(xxi) d)
1.5(xxii)
1.5(xxii) a)
1.5(xxii) b)
1.5(xxii) c)
names of companies in which the person also holds the directorship and
the membership of committees of the board.
2.
2.1.
2.2
3.
3 (i)
Requirement to attend the Board Meetings: The CFO and the Company
Secretary of the companies shall attend the meetings of the Board of Directors,
provided that the CFO and/or the Company Secretary shall not attend such
part of a meeting of the Board of Directors which involves consideration of an
agenda item relating to their personal matters.
Audit Committee:
3 (ii)
The Audit Committee shall assist the Board of Directors in ensuring that the
financial statements reflect true and fair view of the state of affairs of the
company and in ensuring a good monitoring system within the business.
3 (iii)
3.1
3.1 (ii)
3.1 (iii)
3.1 (iv)
When the term of service of the Committee members expires or there is any
circumstance causing any Committee member to be unable to hold office until
expiration of the term of service, thus making the number of the Committee
members to be lower than the prescribed number of 3 (three) persons, the
Board of Directors shall appoint the new Committee member(s) to fill up the
vacancy(ies) immediately or not later than 1 (one) month from the date of
vacancy(ies) in the Committee to ensure continuity of the performance of
work of the Audit Committee.
3.1 (i)
3.1 (v)
128
No such incidence
arose
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Condition
No.
3.1 (vi)
Title
Status
The quorum of the Audit Committee meeting shall not constitute without
at least 1 (one) independent director.
3.2 (i)
The Board of Directors shall select 1 (one) member of the Audit Committee
to be Chairman of the Audit Committee, who shall be an independent
director.
3.2 (ii)
3.2
3.3
3.3 (i)
3.3 (ii)
3.3 (iii)
3.3 (iv)
3.3 (v)
3.3 (vi)
Review along with the management, the quarterly and half yearly financial
statements before submission to the board for approval.
3.3 (vii)
3.3 (viii)
3.3 (ix)
3.3 (x)
3.4
3.4.1
3.4.1(i)
The Audit Committee shall report on its activities to the Board of Directors.
3.4.1(ii)
3.4.1(ii) a)
3.4.1(ii) b)
3.4.1(ii) c)
3.4.1(ii) d)
3.4.2
129
Condition
No.
3.5
Title
Reporting to the Shareholders and General Investors
4.
The issuer company should not engage its external/ statutory auditors to
perform the following services of the company; namely:-
4(i)
4(ii)
4(iii)
4(iv)
Broker-dealer services.
4(v)
Actuarial services.
4(vi)
4(vii)
4(viii)
4(IX)
5.
Status
Subsidiary Company:
5(i)
5(ii)
5(iii)
5(iv)
The minutes of the respective Board meeting of the holding company shall
state that they have reviewed the affairs of the subsidiary company also.
5(v)
The Audit Committee of the holding company shall also review the financial
statements, in particular the investments made by the subsidiary company
6.
6(i)
Duties of Chief Executive Officer (CEO) and Chief Financial Officer (CFO):
The CEO and CFO shall certify to the Board that:-
they have reviewed financial statements for the year and that to the best
of their knowledge and belief;
6(i) a)
6(i) b)
These statements together present a true and fair view of the companys
affairs and are in compliance with existing accounting standards and
applicable laws.
6(ii)
7.
7(i)
7(ii)
The directors of the company shall state, in accordance with the Annexure
attached, in the directors report whether the company has complied with
these conditions.
130
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Compliance of
Meeting
Name
Attended
Remuneration
17
15
75,000.00
A. S. M. Feroz Alam
17
16
80,000.00
M. S. Ahsan
17
15
75,000.00
17
17
85,000.00
17
15
75,000.00
17
14
70,000.00
17
16
80,000.00
M. Amanullah
17
15
75,000.00
17
16
80,000.00
10
Mohd. Selim
17
16
80,000.00
11
40,000.00
12
17
12
60,000.00
13
25,000.00
Directors who could not attend meeting were granted leave of absence by the Board.
Executive Committee (EC) meeting held during 2014 and attendance of each Director
Sl.No.
Name
Remuneration
Held
Attended
44
43
215,000.00
A. S. M. Feroz Alam
44
38
190,000.00
M. S. Ahsan
44
33
165,000.00
44
36
180,000.00
M. Amanullah*
22
20
100,000.00
44
32
160,000.00
22
19
95,000.00
Mohd. Selim**
22
22
110,000.00
22
35,000.00
Audit Committee (AC) meeting held during 2014 and attendance of each Director
Sl.
no.
Name
Attended
Remuneration
11
11
55,000.00
11
10,000.00
Mohd. Selim*
30,000.00
25,000.00
Name
Attended
Remuneration
5,000.00
A. S. M. Feroz Alam*
5,000.00
Mohd. Selim
15,000.00
5,000.00
5,000.00
M. S. Ahsan**
5,000.00
10,000.00
5,000.00
5,000.00
132
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The Pattern of
Shareholding
l
l
Sl.
01
Name
Shares
Held
% of
Holding
Name of
Spouses
Shares
Held
% of
Holding
Directors
Morshed Alam, M.P
18,408,471
2.49%
Bilkis Nahar
251,358
0.03%
26,821,233
3.63%
Yoko Inamori
Nil
Nil
M. S. Ahsan
18,475,226
2.50%
Farah Ahsan
Nil
Nil
16,042,750
2.17%
Ferdousi Begum
1,849,239
0.25%
Nil
Nil
14,820,172
2.01%
Yeasmin Alam
1,849,239
0.25%
14,961,652
2.02%
Nargis Anwar
433,827
0.06%
M. Amanullah
22,200,000
3.00%
Tazneen Aman
33,600
0.00%
16,898,828
2.29%
Israt Jahan
1,388,727
0.19%
Mohd. Selim
21,020,649
2.84%
Farida Begum
2,172,109
0.29%
39,048,992
5.28%
Zobeda Begum
144,791
0.02%
17,692,058
2.39%
Feroza Begum
2,342,373
0.32%
Nil
Nil
Nil
Nil
Asma Jahan
02
M. Ehsanul Haque
Nil
03
Company Secretary(Acting)
Nil
04
Nil
05
Nil
Sl.
Executives ( top five salaried employees of the company, other than the Directors, Chief Executive Officer,
Company Secretary, Chief Financial Officer and Head of Internal Audit) :
Designation
Name
Shares Held
01
Nil
02
Nil
03
Mohammad Masoom
Nil
04
Md. Mati-Ul-Hasan
Nil
05
Mohammad Ismail
Nil
Shareholders holding ten percent or more voting interest in the company: Nil
133
Media Highlight
134
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Media Highlight
135
Report of
Audit Committee
Status
Position
Independent
Director
Chairman
Director
Member
Director
Member
136
Reviewed
Compliance
on
observations,
recommendations and decisions of the Audit
Committee Meetings.
Sustainability
Report
Sustainability Report
In 2014
In 2013
Mobilization of Deposit
140,475.84
124,566.97
117,060.03
97,688.50
Export Business
78,352.70
71,671.50
Import Business
107,089.70
100,685.50
18,208.60
12,434.70
1,962
1,814
138
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139
Report on
Green Banking
Sustainable development and preservation of environment
are now recognized globally as overriding imperatives
to protect our planet from the ravages inflicted on it by
mankind. Various global initiatives are underway to counter
the ill effects of development that we encounter today such
as global warming and climate change. As such, green
environment is one of the most important issues in todays
world where people from all over the world are raising their
voice against environmental pollution.
The geographical location of Bangladesh makes it one
of the most climate vulnerable regions of the world. Lack
of awareness, environmental education, compliance
and negligence on the part of the businesses and the
mass people are also resulting in fast deterioration of the
environment. Air pollution, water pollution and scarcity,
encroachment of rivers, improper disposal of industrial
waste, medical and house-hold waste are the main areas
causing environmental degradation.
Urgent measures are, therefore, required by the
stakeholders for sustainable development and thereby
make the planet a better place to live in. In Bangladesh, as
one of the key stakeholders, banks can play a vital role by
assessing the impact of climate change in daily operations
and financing of nature conservation projects and response
to the environment through green banking practices.
Taking into account the adverse effects of climate change
and progressive action worldwide, Bangladesh Bank, the
central bank of Bangladesh, has shown a deep commitment
towards the vision of green world through green initiatives.
As a part of indicative initiatives, Bangladesh Bank issued
directives for the banks in this regard. Being a responsible
corporate citizen, Mercantile Bank Limited is committed to
develop the green banking practices in safeguarding of the
planet.
Considering the environmental degradation situation as
mentioned above, Bank has already taken steps to address
the issue for utmost positive impact on environment. MBL
is proactive to ensure necessary measures to protect
environmental pollution while financing a new project or
providing working capital to the existing enterprises.
Policy Formulation and Governance
With a view to developing green banking practices in
the country, Mercantile Bank Limited has formulated a
comprehensive and realistic Green Banking Policy of the
bank in a formal and structured manner, which has already
been approved by the Board of Directors of the Bank.
Bank has formed the Risk Management Committee of the
Bank comprising the members of Board of Directors, which
will work as High Power Committee to review the banks
green or environmental policies, strategies and program for
governing the overall green banking activities of the bank.
annual report 2014
140
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141
Report on
Human Resources
Human resources are the set of individuals who make
up the workforce of an organization, business sector,
or economy. Human capital is sometimes used
synonymously with human resources, although human
capital typically refers to a more narrow view. Human
capital is a collection of resources all the knowledge,
talents, skills, abilities, experience, intelligence, training,
judgment, and wisdom possessed individually and
collectively by individuals in a population. These resources
are the total capacity of the people that represents a form
of wealth which can be directed to accomplish the goals
of the nation or state or a portion thereof.
From the corporate objective, employees have been
traditionally viewed as assets to the enterprise, whose
value is enhanced by further learning and development,
referred to as human resource development.
Organizations will engage in a broad range of human
resource management practices to capitalize on those
assets. Employees of the banks play significant role
in providing better customer service. A talented officer
can win the heart of a customer by providing efficient
service blended with personal care which eventually
builds a strong and ever-lasting business relationship
with that customer.
MBLs Human Resources
Human resources (HR) are main elements behind
the success and future sustainability of the bank.
MBL is developing and motivating the workforce with
contemporary HR policies and attractive benefits. Our
people are our most valuable asset, embodying our
commitment to maximizing wealth of the Bank. We
rely on them to communicate this value to our many
stakeholders. With the Bank stepping up to entrenching
its business strength, Bank Human Resource initiatives
continued to focus on building capacity and confidence
to keep up the momentum and employees resilience in
pursuit to become most caring and gainfully profitable
Bank. Finding the right employees, developing, rewarding
and retaining them are some of our highest priorities.
MBL has formulated an efficient recruitment policy to
recruit new employees, both fresh and experienced to
meet the customers ever-increasing demand and to
support the business expansions of the Bank. Our human
resources are competent enough to handle the challenges
of modern banking. Total Manpower of the Bank over the
last two years is shown in the following table:
142
Manpower
December, 2014
December, 2013
Executives
246
190
1,716
1,624
Total
1,962
1,814
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143
Total
Sessions
No.
of Trainees
Days
Utilized
75
860
2,492
176
The Training Institute has fixed a target with three main
dimensions
2014
0.91
0.82
1.83
1.73
4.08
4.12
Profit before
employee
2.25
2.39
1.17
1.78
49.85%
47.16%
22.35%
19.82%
provision
per
144
2013
ion
t
ra
po
r
Co
o
vir
So
cia
En
n
e
m
Report on
Corporate Social Responsibility (CSR)
Report on CSR
146
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Monthly
Scholarship
(BDT)
Category
Health
13.50
Disaster Management
22.40
Sports
0.60
0.80
Others
13.80
Total
53.00
4%
25%
2%
1%
42%
Education (4%)
Health (25%)
Disaster Management (42%)
Sports (1%)
Art and Culture (2%)
Others (26%)
750.00
454
1 Year
S.S.C
1,000.00
263
1 Year
H.S.C
1,500.00
153
1 Year
Numbers of Students
Division
Total
J.S.C
S.S.C
H.S.C
Dhaka
57
49
35
141
Chittagong
197
93
36
326
Rajshahi
74
39
25
138
Khulna
26
15
13
54
Sylhet
19
17
17
53
Barisal
26
20
12
58
Rangpur
55
30
15
100
Total
454
263
153
870
11%
7%
16%
6%
Tenure
J.S.C
1.90
26%
No. of
Beneficiary
BDT in Million
Education
6%
16%
37%
Dhaka (16%)
Chittagong (37%)
Rajshahi (16%)
Khulna (6%)
Sylhet (6%)
Barisal (7%)
Rangpur (11%)
147
Report on CSR
Arenas
Scholars Rewarded
Education
Healthcare
Culture
Selina Hossain
Mahbubur Rahman
Journalism
Nurjahan Begum
Sports
148
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Muktijoddha Sangshad
Bijoy Dibash Celebration
Bonomali Institute, Pabna
Kamrul Hasan Art School
149
Report on CSR
150
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151
MBL
ALbum
152
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153
MBL Album
MBL signed an Agreement with Swiss contact to promote Mobile Banking Services
154
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155
CFOs Statement
Mercantile Bank Limited demonstrated improvements
in key financial indicators and developed strong
fundamentals along with healthy capital base. Considering
the overwhelming economic challenges and unpleasant
political situation over the country, Mercantile Bank Limited
kept the growth momentum achieved cheering results in
the year 2014.
Prudent fund management, reduction of cost of deposits,
good return from investment in government bonds and
bills aided to achieve such growth. In the year 2014 we
have also emphasis on procuring more low cost and no
cost deposits to upgrade the deposit mix which will lead to
reduce the cost of deposit. MBL successfully restrained its
controllable expenses in the year 2014.
Key Performance Indicators of the Bank as on December
31, 2014 are as follows:
(BDT in Million)
Particulars
Loans and Advances
2013
2014
97,688.50
117,060.03
Deposits
120,857.89
134,996.49
Import
100,680.00
107,089.70
Export
71,670.00
78,352.70
Remittance
12,440.00
18,208.50
156
(BDT in Million)
Particulars
Investments
Operating Profit
2013
2014
30,090.60
32,184.08
4,255.70
4,410.57
Net Profit
1,978.70
1,188.51
Paid-up Capital
6,599.61
7,391.56
12,574.24
13,519.17
Shareholders Equity
www.mblbd.com
Assets Quality
71.73
2010
53.61
2011
65.9
2012
66.37
2013
66.71
2014
62.19
Operating Efficiency
66.37
65.9
62.19
53.61
2010
2011
2012
2013
2014
Capital Fund
The bank is committed to maintain adequate capital base
to remain compliant as per risk based capital adequacy
framework i.e. Basel II. For this, the bank has framed a
five year capital plan incorporating its future outlook of
achieving capital adequacy ratio far above than minimum
requirement in the future. Furthermore, MBL issued
subordinated bond worth BDT 3,000.00 million to further
strengthen its capital base. As on December 31, 2014
regulatory capital and capital adequacy ratio of the Bank
is as under:
(BDT in Crore)
Particulars
2013
1,176.76
1,242.77
194.21
667.62
2014
1,370.97
1,910.39
11,999.51
14,748.43
11.43%
12.95%
1,199.55
1,474.84
171.02
435.55
Capital Surplus
Capital Fund
Total Eligible Capital
Minium Capital Requirement
Capital Surplus
1370.97
1199.55
2014
i. Interest Income
13,344.90
13,984.49
11,795.76
11,385.38
1,549.13
2,599.10
5,745.81
5,396.91
7,294.96
7,996.02
3,039.26
3,585.44
41.66%
44.84%
1,910.39
1,474.84
435.55
171.02
2013
2013
2014
157
To
The Board of Directors
Mercantile Bank Limited
61, Dilkusha C/A
Dhaka 1000.
In accordance with the notification of Bangladesh Securities and Exchange Commission No. SEC/CMRRCD/2006-158/134/
Admin/44 dated 07, August 2012 we declare the followings regarding the financial statements of Mercantile Bank Limited
for the year ended 31 December 2014:
i) We have reviewed the financial statements for the year and that to the best of our knowledge and belief:
a)
These statements do not contain any materially untrue statement or omit any material fact or contain
statements that might be misleading;
b)
These statements together present a true and fair view of the companys affairs and are in compliance
with existing accounting standards and applicable laws;
ii) There are, to the best of knowledge and belief, no transactions entered into by the Bank during the year which
are fraudulent, illegal or violation of the Banks code of conduct.
M. Ehsanul Haque
158
Auditors
Report
We have audited the accompanying consolidated financial statements of Mercantile Bank Limited and its subsidiaries,
(the Group) as well as the financial statements of Mercantile Bank Limited (the Bank) which comprise the consolidated
balance sheet and the separate balance Sheet as at 31 December 2014 and the consolidated and separate profit & loss
accounts, consolidated and separate statements of changes in equity and consolidated and separate cash flow statements
for the year then ended, and a summary of significant accounting policies and other explanatory notes.
Managements Responsibility for the Financial Statements and Internal Controls
Management is responsible for the preparation of consolidated financial statements of the Group and also separate
financial statements of the Bank that gives a true and fair view in accordance with International Financial Reporting
standards (IFRS)/ Bangladesh Financial Reporting Standards (BFRSs) as explained in notes and for such internal control
as management determines is necessary to enable the preparation of consolidated financial statements of the Group and
also the separate financial statements of the Bank that are free from material misstatement, whether due to fraud and
error. The Bank Companies 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.
Auditors Responsibility
Our responsibility is to express an opinion on these consolidated financial statements of the Group and the separate
financial statements of the Bank based on our audit. We conducted our audit in accordance with Bangladesh Standards
on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the consolidated financial statements of the Group and separate financial statements
of the Bank are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated
financial statements of the Group and separate financial statements of the Bank. The procedures selected depend on the
auditors judgment, including the assessment of the risks of material misstatement of the consolidated financial statements
of the Group and separate financial statements of the Bank, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the entitys preparation of consolidated financial statements of the Group
and separate financial statements of the Bank that give a true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the
consolidated financial statements of the Group and also separate financial statements of the Bank.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion the consolidated financial statements of the Group and also separate financial statements of the Bank give
a true and fair view of the consolidated financial position of the Group and the separate financial position of the Bank as
at 31 December 2014 and of its consolidated and separate financial performance and its consolidated and separate cash
flows for the year then ended in accordance with International Financial Reporting standards (IFRS)/ Bangladesh Financial
Reporting Standards as explained in notes.
Report on Other Legal and Regulatory Requirements
In accordance with the Companies Act 1994, Securities and Exchange Rules 1987, the Bank Company Act, 1991 and the
rules and regulations issued by the Bangladesh Bank, we also report the following:
(a) we have obtained all the information and explanation which to the best of our knowledge and belief were
necessary for the purpose of our audit and made due verification thereof;
(b) to the extent noted during the course of our audit work performed on the basis stated under the Auditors
160
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Responsibility section in forming the above opinion on the consolidated financial statements of the Group and the
financial statements of the Bank and considering the reports of the Management to Bangladesh Bank on antifraud internal controls and instances of fraud and forgeries as stated under the Managements Responsibility for
the Financial Statements and Internal Control:
i)
Internal audit, internal control and risk management arrangements of the Group and the Bank, as disclosed
in note 2.10 of the financial statements. appeared to be materially adequate;
ii) 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 Bank and its related entities .
(c) financial statements of subsidiary companies of the Bank namely Mercantile Bank Securities Limited have been
audited by K.M.Hasan & Co., Chartered Accountants and Mercantile Exchange House (UK) Limited has been
audited by Jahan & Co., Chartered Management Accountants have been properly reflected in the consolidated
financial statements;
(d) in our opinion, proper books of account as required by law have been kept by the Group and the Bank so far as
it appeared from our examination of those books;
(e) the consolidated balance sheet and consolidated profit and loss account of the Group and the separate balance
sheet and separate profit and loss account of the Bank dealt with by the report are in agreement with the books
of account;
(f) the expenditure incurred was for the purposes of the Banks business;
(g) 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 Bangladesh Financial Reporting Standards as
explained in notes as well as with related guidance , circulars issued by Bangladesh Bank;
(h) adequate provisions have been made for loans and advances which are, in our opinion, doubtful of recovery;
(i) the records and statements submitted by the branches have been properly maintained and consolidated in the
financial statements;
(j) the information and explanation required by us have been received and found satisfactory; and
(k) we have reviewed over 80% of the risk weighted assets of the Bank and we have spent around 5,620 person
hours for the audit of the books and accounts of the Bank.
Place: Dhaka
Dated: April 22, 2015
161
162
Notes
Property and Assets
Cash in hand
Cash in hand (Including foreign currencies)
Balance with Bangladesh Bank & its agent bank(s) (including foreign currency)
Amount in Taka
2014
2013
3(a)
12,894,309,930
1,430,510,899
11,463,799,031
10,402,462,532
1,551,949,396
8,850,513,136
4(a)
754,524,728
368,830,617
385,694,111
921,764,840
434,127,130
487,637,710
5(a)
Investments
Government
Others
6(a)
32,414,084,966
29,720,024,802
2,694,060,164
30,320,602,619
28,642,766,416
1,677,836,203
7(a)
117,241,097,332
110,173,008,505
7,068,088,827
97,582,383,031
91,084,470,329
6,497,912,702
8(a)
9(a)
3,229,353,467
2,567,367,706
-
3,137,872,330
2,737,292,404
-
169,100,738,129
145,102,377,756
3,692,368,038
1,378,752,480
10(a)
11.1(a)
11.2(a)
11.3(a)
11.4(a)
11.5(a)
135,000,511,870
21,844,985,397
1,387,228,039
10,534,217,297
46,057,219,028
55,176,862,109
120,912,479,182
18,853,306,986
1,388,795,686
8,510,143,963
41,945,686,077
50,214,546,470
Subordinated bond
11.2(b)
3,000,000,000
13,845,780,155
155,538,660,063
10,178,709,385
132,469,941,047
13,509,436,941
7,391,567,010
4,223,124,428
1,137,109,118
757,636,385
12,579,838,919
6,599,613,410
3,765,422,762
852,291,348
1,362,511,399
52,641,124
13,562,078,006
169,100,738,129
52,597,790
12,632,436,709
145,102,377,756
Other liabilities
Total Liabilities
12(a)
Capital/Shareholders Equity
Paid-up Capital
Statutory Reserve
Other Reserve
Surplus in Profit & Loss Account
Non Controlling Interest
Total Shareholders Equity
Total Liabilities & Shareholders Equity
164
13.1
14(a)
15(a)
16(a)
16(b)
www.mblbd.com
Amount in Taka
2014
2013
Notes
Off-Balance Sheet Items
Contingent Liabilities
Acceptances and endorsements
Letters of guarantee
Irrevocable Letters of Credit
Bills for collection
Other contingent liabilities(BLW)
17.1
17.2
17.3
17.4
17.5
20,279,437,342
7,508,920,077
24,344,028,198
6,168,104,039
2,498,091,318
60,798,580,974
21,519,338,210
7,196,610,686
20,947,675,954
207,495,891
1,882,488,279
51,753,609,020
60,798,580,974
51,753,609,020
Other Commitments
Documentary credits and short term trade related transactions
Forward assets purchased and forward deposits placed
Undrawn note issuance and revolving underwriting facilities
Undrawn formal standby facilities, credit lines and other commitments
Director
Director
Chairman
This is the Consolidated Balance sheet referred to in our separate report of even date
Dated: Dhaka
April 22, 2015
165
Amount in Taka
2014
2013
Interest Income
Less: Interest Paid on Deposits, Borrowings etc.
Net Interest Income
19(a)
21(a)
13,959,793,130
11,385,387,903
2,574,405,227
13,415,739,973
11,795,763,777
1,619,976,196
Investment Income
Commission, Exchange and Brokerage
Other Operating Income
20(a)
22(a)
23(a)
2,796,034,926
1,639,270,591
1,067,400,996
5,502,706,513
8,077,111,740
3,266,941,399
1,538,375,863
1,043,262,245
5,848,579,507
7,468,555,703
24(a)
27(a)
28(a)
1,815,704,997
493,876,705
12,847,613
54,700,176
204,808,220
13,183,947
3,235,395
1,000,826
273,023,643
794,770,488
3,667,152,010
4,409,959,730
1,469,123,441
444,562,167
13,337,113
56,354,638
149,427,782
11,350,076
3,523,250
1,266,785
238,697,626
751,921,869
3,139,564,747
4,328,990,956
2,122,064,054
6,000,000
2,128,064,054
2,281,895,676
1,027,000,000
67,500,000
1,094,500,000
3,234,490,956
1,145,120,442
(35,030,921)
1,110,089,521
1,171,806,155
46,173,020
1,217,979,175
1,236,641,207
20,000,000
1,256,641,207
1,977,849,749
32,998,440
2,010,848,189
29(a)
25(a)
26(a)
30(a)
31(a)
Provision for loans and advances including off Balance Sheet items
Provision for diminution in value of investments in shares
Other Provision
Total Provision
Total Profit before taxes
12.5(a)
12.3.1(a)
12.4.1(a)
12.4.2(a)
16(b)
16(a)
457,701,666
2,641,124
757,636,385
1,217,979,175
645,739,000
2,597,790
1,362,511,399
2,010,848,189
32(a)
1.59
2.68
Director
Director
Chairman
This is the Consolidated Balance sheet referred to in our separate report of even date
A. Qasem & Co.
Chartered Accountants
Dated: Dhaka
April 22, 2015
annual report 2014
166
167
Dated: Dhaka
22 April 2015
45,680,250
643,611,955
943,171
-
Director
J=(H+I)
Total
1,171,849,489
(527,969,073)
13,562,078,066
943,171
-
Chairman
52,597,790 12,632,436,709
52,641,124
43,334
-
52,597,790 12,632,436,709
284,817,770
Non
Controlling
Interest
Amount in BDT
This is the Consolidated Balance sheet referred to in our separate report of even date
Director
943,171
-
- 1,171,806,155 1,171,806,155
- (791,953,600)
- (527,969,073) (527,969,073)
643,611,955 1,137,109,118 757,636,385 13,509,436,942
H=(A+B+F+G)
Total
162,999,143
447,816,913
45,680,250
6,599,613,410 3,765,422,762
643,611,955
-
162,999,143
284,817,770
45,680,250
-
Statutory
Reserve
Paid-up
Capital
Particulars
Other Reserve
Surplus
Adjustment Revaluation
Net Balance
Dividend
for
Surplus
of Other
Profit/(loss)
Equalization
Approved
for Fixed
Reserve
Fund
Securities
Assets
C
D
E
F=(C+D+E)
G
www.mblbd.com
Amount in Taka
2014
2013
519,160,515
Interest received
13,220,634,464
99,520,228
12,610,901,790
Interest paid
(9,996,108,341)
(10,551,408,332)
(1,815,704,997)
(1,469,123,441)
(1,659,238,142)
(1,205,386,356)
4,620,520,597
4,976,072,892
3,847,092,533
4,301,661,378
(1,420,131,560)
(1,322,566,113)
865,842,527
Payment to suppliers
(96,264,996)
Exchange gain
773,428,064
(493,876,705)
Legal expenses
(12,847,613)
674,411,514
(444,562,167)
(13,337,113)
(56,354,638)
(46,516,410)
(40,250,215)
(13,183,947)
Directors fees
(149,427,782)
(54,700,176)
(1,431,104)
863,964,349
(3,235,395)
(1,586,785)
(11,350,076)
(3,523,250)
Other expenses
(794,340,210)
(751,601,869)
3,719,549,552
3,753,027,007
(20,735,972,687)
9.1
Advance rent
Advance deposits
(19,658,714,301)
(4,198,091,485)
67,441,366
(1,744,907,839)
(4,533,285)
(1,988,009)
Stamps in hand
168
(220,042)
2,860,426
(15,184,952)
54,961
(4,872,620)
6,092,337
9.2
(399,865,714)
(291,657,035)
(91,927)
Premium on bond
11,113,869
(3,584,515)
Stock of stationery
11,391,982,185
7,193,890,700
(1,077,258,386)
61,747,559
(4,230,050)
(2,731,788)
(3,521,040)
(6,884,268)
(27,771,532)
(954,889,290)
(37,309,558)
www.mblbd.com
Amount in Taka
2014
2013
18,114,323,316
2,313,615,558
14,088,032,688
1,712,675,070
(9,584,285,417)
(14,548,580,443)
2,867,454,399
2,096,840,627
1,165,341,547
(382,275,550)
16,343,389
(312,884,616)
8,776,039
(1,025,000,000)
(1,312,765,188)
8,542,266
(384,104,339)
(10,890,334)
(157,500,000)
(543,952,407)
B)
C)
3,000,000,000
(527,969,073)
2,472,030,927
(427,752,721)
(427,752,721)
2,324,607,286
(1,353,980,678)
11,324,227,372
13,648,834,658
12,678,208,050
11,324,227,372
16.A(2)
Director
Director
Chairman
This is the Consolidated Balance sheet referred to in our separate report of even date
Dated: Dhaka
April 22, 2015
169
170
2,877,497,153
Net Liquidity
31,444,031,281
Total Liabilities
1,387,228,039
30,056,803,242
34,321,528,434
1,148,285,554
22,203,307,383
130,560,310
114,956,763
10,724,418,424
Up to 01
Month
Subordinated bond
Other accounts
Deposits
Borrowing from Bangladesh Bank, other banks, financial institutions and agents
Liabilities:
Total Assets
Non-banking assets
Other assets
Investments
Cash in hand
Assets:
Particulars
80,002,425
18,068,416,749
145,934,683
17,922,482,066
18,148,419,174
338,523,642
14,292,940,647
1,125,159,494
221,903,885
2,169,891,506
01-03
Months
As at 31 December 2014
896,169,065
20,565,695,341
1,600,770,294
15,272,557,009
3,692,368,038
21,461,864,406
670,196,114
490,102,001
14,094,914,177
5,801,134,151
405,517,963
03-12
Months
875,855,159
82,460,516,692
12,099,075,178
70,361,441,514
83,336,371,851
410,362,396
686,694,787
57,002,825,396
25,224,343,155
12,146,117
01-05
Years
8,832,554,264
3,000,000,000
3,000,000,000
11,832,554,264
2,052,556,679
9,647,109,729
132,887,856
More than
05 years
13,562,078,066
155,538,660,063
13,845,780,155
3,000,000,000
1,387,228,039
133,613,283,831
3,692,368,038
169,100,738,129
2,567,367,706
3,229,353,467
117,241,097,332
32,414,084,966
754,524,728
12,894,309,930
Total
Amount in BDT
As at 31 December 2014
Notes
Amount in Taka
2014
2013
12,894,264,363
10,402,414,466
3.1
1,430,465,332
1,551,901,330
3.2
11,463,799,031
8,850,513,136
742,378,611
917,821,434
In Bangladesh
4.1
356,894,971
430,200,971
Outside Bangladesh
4.2
385,483,640
487,620,463
Investments
32,184,085,090
30,090,602,749
Government
6.4
29,720,024,802
28,642,766,416
Others
6.5
2,464,060,288
1,447,836,333
117,060,025,369
97,688,501,593
7.A
109,991,936,542
91,190,588,891
7.B
7,068,088,827
6,497,912,702
3,198,110,451
3,097,595,988
Other assets
2,395,268,905
2,644,932,970
168,474,132,789
144,841,869,200
10
3,692,368,038
1,378,752,480
11
134,996,493,244
120,857,891,422
11.1
21,840,966,771
18,798,719,226
Bills payable
11.2
1,387,228,039
1,388,795,686
11.3
10,534,217,297
8,510,143,963
Fixed deposits
11.4
46,057,219,028
41,945,686,077
11.5
55,176,862,109
50,214,546,470
11.2(b)
3,000,000,000
Subordinated bond
Other Liabilities
12
Total Liabilities
172
13,266,098,308
10,030,987,033
154,954,959,590
132,267,630,935
www.mblbd.com
As at 31 December 2014
Notes
Capital/shareholders equity
Paid-up capital
Statutory reserve
Other reserve
Surplus in profit & loss account
Total shareholders equity
Total Liabilities & Shareholders Equity
Amount in Taka
2014
2013
13.1
14
15
16
7,391,567,010
4,223,124,428
1,137,109,118
767,372,642
13,519,173,199
168,474,132,789
6,599,613,410
3,765,422,762
852,291,348
1,356,910,745
12,574,238,265
144,841,869,200
17.1
17.2
17.3
17.4
17.5
20,279,437,342
7,508,920,077
24,344,028,198
6,168,104,039
2,498,091,318
60,798,580,974
21,519,338,210
7,196,610,686
20,947,675,954
207,495,891
1,882,488,279
51,753,609,020
60,798,580,974
51,753,609,020
Other Commitments
Documentary credits and short term trade related transactions
Forward assets purchased and forward deposits placed
Undrawn note issuance and revolving underwriting facilities
Undrawn formal standby facilities, credit lines and other commitments
commitments
Director
Director
Chairman
This is the Consolidated Balance sheet referred to in our separate report of even date
Dated: Dhaka
April 22, 2015
173
Amount in Taka
2014
2013
Interest income
Less: Interest paid on deposits, borrowings etc.
Net interest income
19
21
13,984,496,217
11,385,387,903
2,599,108,314
13,344,900,827
11,795,763,777
1,549,137,050
Investment income
Commission, exchange and brokerage
Other operating income
20
22
23
2,796,034,926
1,552,573,148
1,048,305,620
5,396,913,694
7,996,022,008
3,266,941,399
1,457,893,757
1,020,981,499
5,745,816,655
7,294,953,705
24
27
28
1,787,532,478
479,327,244
12,716,373
52,391,894
204,395,829
11,688,710
2,745,395
600,000
267,919,889
766,131,809
3,585,449,621
4,410,572,387
1,428,294,247
430,755,661
12,542,954
53,642,117
148,896,162
9,854,839
2,793,250
600,000
232,296,630
719,582,847
3,039,258,707
4,255,694,998
2,122,064,054
-
1,027,000,000
-
2,122,064,054
2,288,508,333
1,027,000,000
3,228,694,998
12.4
1,135,030,921
(35,030,921)
1,100,000,000
1,188,508,333
36,565,976
1,225,074,309
1,230,000,000
20,000,000
1,250,000,000
1,978,694,998
23,954,747
2,002,649,745
14
457,701,667
767,372,642
1,225,074,309
645,739,000
1,356,910,745
2,002,649,745
1.61
2.68
29
25
26
30
31
Provision for loans and advances including off Balance Sheet items
12.5
Other provision
Total provision
Total profit/(loss) before taxes
Provision for Current tax
Provision for Deferred Tax
Net profit after taxation
Retained surplus brought forward from previous year
Profit available for appropriation
Appropriation
Statutory reserve
General reserve
Retained earnings
Earnings per share (EPS)
16
32
Director
Director
Chairman
This is the Consolidated Balance sheet referred to in our separate report of even date
Dated: Dhaka
April 22, 2015
174
www.mblbd.com
Amount in Taka
2014
2013
485,751,069
Interest received
13,245,337,551
66,145,041
12,540,062,644
Interest paid
(9,996,108,341)
(10,551,408,332)
(1,787,532,478)
(1,428,294,247)
(1,659,238,142)
(1,205,386,356)
4,601,425,221
4,953,792,146
3,827,997,157
4,279,380,632
(1,480,061,059)
(1,346,262,134)
(12,716,373)
(12,542,954)
779,145,084
Payment to suppliers
(95,852,605)
Exchange gain
773,428,064
(479,327,244)
Legal expenses
(52,391,894)
Auditors fees
(430,278)
(46,516,410)
(11,688,710)
Directors fees
(2,745,395)
Other expenses
(874,244,755)
3,607,115,231
(20,448,782,162)
9.1
Advance rent
Advance deposits
Stamps in hand
(575,000)
(40,250,215)
(9,854,839)
(2,455,000)
(796,186,348)
3,673,675,053
7,314,355,005
67,441,366
1,496,513,466
(4,533,285)
(1,988,009)
159,770,114
(60,042)
11,113,869
19,793,967
2,860,426
7,709,165
6,092,337
9.2
(53,642,117)
(4,077,627,180)
54,961
(430,755,661)
(19,371,523,776)
(91,927)
Premium on bond
674,411,514
11,391,982,185
(3,584,515)
Stock of stationery
(72,310,911)
(1,077,258,386)
783,482,243
(422,046)
(894,401)
25,998,101
(23,348,515)
(4,230,050)
(7,223,259)
61,747,559
175
77,361,830
1,237,828,552
Notes
17,940,400,226
2,313,615,558
14,138,601,822
Other liabilities
1,488,182,846
1,166,174,661
Dividend received
16,343,389
(321,917,942)
Purchase/sale of shares
8,776,039
(14,548,580,443)
2,751,007,717
1,412,317,301
(725,346,503)
8,542,266
(6,953,533)
(10,890,337)
Purchase/sale of bond
(1,025,000,000)
(157,500,000)
(1,321,798,514)
(166,801,604)
C)
(13,209,890,027)
3,000,000,000
(527,969,073)
2,472,030,927
(427,752,721)
2,316,407,074
(1,319,900,828)
Dividend paid
16.A(1)
11,320,235,900
13,636,642,974
(427,752,721)
12,640,136,728
11,320,235,900
Director
Director
Chairman
This is the Consolidated Balance sheet referred to in our separate report of even date
Dated: Dhaka
April 22, 2015
176
6,599,613,410
177
Dated: Dhaka
April 22, 2015
45,680,250
4,223,124,428
45,680,250
162,999,143
643,611,955
Director
This is the Consolidated Balance sheet referred to in our separate report of even date
Director
3,765,422,762
791,953,600
7,391,567,010
457,701,667
-
Dividend
Equalization
Fund
C
45,680,250
-
B
3,765,422,762
-
Statutory
reserve
A
6,599,613,410
-
Paid-up capital
Amount in BDT
Chairman
1,356,910,745 12,574,238,265
852,291,348
Other reserve
Surplus profit/
Adjustment
Revaluation
Total
Net balance of
(loss)
for Approved
surplus for
other reserve
Securities
Fixed assets
D
E
F=C+D+E
G
H=A+B+F+G
162,999,143
643,611,955
852,291,348 1,356,910,745 12,574,238,265
(422,096)
(422,096)
(457,701,667)
284,817,770
284,817,770
284,817,770
- 1,188,508,333 1,188,508,333
(791,953,600)
(527,969,073)
(527,969,073)
447,816,913
643,611,955
1,137,109,118
767,372,642 13,519,173,199
Particulars
www.mblbd.com
178
Liabilities:
Borrowing from Bangladesh Bank, other banks, financial
institutions and agents
Deposits
Other accounts
Subordinated Bond
Provision and other liabilities
Total liabilities
Net Liquidity
Assets:
Cash in hand
Balance with other banks and financial institutions
Money at call and short notice
Investments
Loans and advances
Fixed assets including premises, furniture and fixtures
Other assets
Non-banking assets
Total assets
20,575,895,500
145,934,683
20,721,830,183
46,543,424
33,996,343,264
1,387,228,039
35,383,571,303
8,937,957,131
2,169,845,939
221,903,885
1,125,159,494
16,912,940,647
338,523,642
20,768,373,607
10,724,418,424
114,956,763
130,560,310
32,203,307,383
1,148,285,554
44,321,528,434
01-03
Months
Up to 01
Month
As at 31 December 2014
25,985,252,855
1,814,670,294
31,492,291,187
4,119,784,111
3,692,368,038
405,517,963
5,801,134,151
28,244,914,177
490,102,001
670,407,006
35,612,075,298
03-12
Months
Liquidity Statement
Asset and Liability Maturity Analysis
31,056,450,542
550,219,508
31,606,670,050
347,577,425
8,224,343,155
22,836,399,845
655,451,772
238,052,703
31,954,247,475
01-05
Years
Total
Amount in BDT
3,692,368,038
21,995,323,044 133,609,265,205
1,387,228,039
3,000,000,000
3,000,000,000
10,755,273,823
13,266,098,308
35,750,596,867 154,954,959,590
67,311,108
13,519,173,199
12,894,264,363
742,378,611
16,902,887,980
32,184,085,090
16,862,463,317 117,060,025,369
2,052,556,678
3,198,110,451
2,395,268,905
35,817,907,975 168,474,132,789
More than
05 years
www.mblbd.com
Principle activities
Country of incorporation
Trading securities
Bangladesh
Controlling
interest
92.31%
Financial services
UK
100%
Name
179
b.
c.
d.
e.
f.
g.
h.
Closing Price
1 = BDT 124.0252
Closing Price
1= BDT 124.0252
Price
180
Particulars
www.mblbd.com
has
made
various
judgments,
iii) Commitments
Commitments for outstanding forwarded foreign
exchange contracts disclosed in these financial
value and are used by the Bank for its short term
commitments.
181
Particulars
Rate
0.25%
1%
2%
2%
5%
Outstanding amount of loans kept in the Special Mention Account after netting off the amount of
Interest Suspense.
2%
0.25% -5%
Rate
20%
50%
100%
182
www.mblbd.com
Initial
Recognition
Recording of changes
Increase or decrease in value of
equity
Loss to P&L, gain to revaluation through
B/S
Cost
Amortized Cost
Cost
Fair Value
Cost
Fair Value
Do
Share (Quoted)
Cost
Share (Un-Quoted)
Cost
Cost
None
Prize bond
Cost
Cost
None
Investments in Subsidiary
The Bank recognizes investment in subsidiaries
under cost method in the Group financial
statements in accordance with BAS 28 Investment
in Associates. The investments in subsidiaries are
reviewed impairment test regularly to recognize
investment at cost.
Offsetting Financial Instruments
Financial assets and financial liabilities are offset
and the net amount reported in the balance sheet
when there is a legally enforceable right to offset
the recognized amounts and there is an intention to
settle on a net basis or realize the asset and settle
the liability simultaneously as per BFRS 7 Financial
Instruments: Disclosures.
Category of Assets
Rate
Nil
Building
2.5%
10%
Office Equipment
20%
Vehicles
20%
Books
20%
f)
183
184
www.mblbd.com
Other
Banks,
Financial
185
Provident Fund
186
www.mblbd.com
187
188
www.mblbd.com
Audit Committee
The Audit Committee constituted by the Board of
Directors of the Bank consisting following three
members:
Name
Educational qualification
Chairman
Mohd. Selim
Member
Graduate
Member
M. Com
Reviewed
Compliance
on
observations,
recommendations and decisions of the Audit
Committee Meetings.
Internal Audit
The Banks compliance risk management system is
subject to implementation by the senior management
and a qualified compliance officer/ staff and reviewed
by an effective and comprehensive internal audit
function.
Compliance risk included in the risk assessment
methodology of the internal audit function and
an audit program that covers the adequacy
and effectiveness of the Banks compliance
function established, including testing of controls
commensurate with the perceived level of risk.
This principle implies that the compliance function
and the internal audit function separate to ensure
that the activities of the compliance function are
subject to independent review. However, the audit
function keep the head of compliance informed of
any audit findings related to compliance.
189
190
BAS No
1
2
7
8
10
11
12
16
17
18
19
20
21
23
24
26
27
28
31
32
33
34
36
37
38
39
40
41
Status
Applied
Applied
Applied
Applied
Applied
N/A
Applied
Applied
Applied
Applied
Applied
N/A
Applied
Applied
Applied
Applied
Applied
N/A
N/A
Applied
Applied
Applied
Applied
Applied
Applied
Applied
Applied
N/A
www.mblbd.com
BFRS No
Status
N/A
N/A
Business Combinations
N/A
Insurance Contracts
N/A
N/A
N/A
N/A
Operating Segments
Applied
10
Applied
Joint Arrangement
11
N/A
12
N/A
13
N/A
Balance Sheet
Position);
b)
c)
d)
e)
f)
Significant
Accounting
Explanatory Notes to
Statements.
(Statement
of
Financial
Policies
and
the Financial
2.17 Rating
Credit Rating and Information Services Limited
(CRISL) on the basis of Financial Statements as
rated Mercantile Bank Limited. The summary of
their ratings is given below:
CRISL
CRISL rated the Mercantile Bank Limited to
AA- (Pronounced as Double A Minus) in the
2.18 General
a) Wherever considered necessary, previous periods figures
have been rearranged for the purpose of comparison;
b) Figures appearing in the Financial Statements have
been rounded off to the nearest Taka;
c)
191
3
3.1
Amount in Taka
2014
2013
Cash
Cash in hand
In local currency
In foreign currency
3.2
Balance with Bangladesh Bank & its agent bank(s) (including foreign currency)
Bangladesh Bank
In local currency
In foreign currencies
Agent banks(s)
1,406,436,619
1,508,129,127
1,430,465,332
1,551,901,330
9,317,981,805
7,619,900,061
11,292,164,168
8,700,028,032
24,028,713
1,974,182,363
171,634,863
11,463,799,031
12,894,264,363
3.3
43,772,203
1,080,127,971
150,485,104
8,850,513,136
10,402,414,466
a)
Cash Reserve Ratio (CRR): 6.5% of average demand and time liabilities:
Required Reserve
6,707,989,000
373,381,805
911,911,061
9,317,981,805
7,619,900,061
Statutory Liquidity Ratio (SLR): 13% of average demand and time liabilities:
Required reserve
17,889,200,000
Surplus
13,634,671,938
3.4
8,944,600,000
16,465,064,000
31,523,871,938
31,106,578,807
12,894,264,363
10,402,414,466
14,641,514,807
Up to 1(one) month
192
12,894,264,363
10,402,414,466
www.mblbd.com
Amount in Taka
2014
2013
3.5
3(a)
Consolidated Cash
Cash in hand (Including foreign currencies)
Mercantile Bank Limited
Mercantile Bank Securities Limited
Mercantile Exchange House (UK) Limited
Balance with Bangladesh Bank and its agent bank. (Including foreign currencies)
Mercantile Bank Limited
Mercantile Bank Securities Limited
Mercantile Exchange House (UK) Limited
4.
4.1
1,430,465,332
373,381,805
2,384,342,176
27,335,682,625
31,523,871,938
1,551,901,330
911,911,061
28,642,766,416
31,106,578,807
1,430,465,332
45,567
1,430,510,899
1,551,901,330
48,066
1,551,949,396
11,463,799,031
11,463,799,031
12,894,309,930
8,850,513,136
8,850,513,136
10,402,462,532
16,119,225
98,837,538
114,956,763
37,714,172
15,677,977
53,392,149
3,639,300
12,255,208
35,400
55,673,719
1,000,000
42,770
1,805
11,771
7,386,979
951,541
556,170
2,500,000
1,067,954
366,158
100,996,225
2,395,262
221,563
189,101,825
32,802,060
336,860,648
42,136,479
1,097,885
36,577
5,673,719
1,000,000
21,571
4,943
49,835
11,770
1,386,570
2,000,000
366,388
996,225
200,197,163
221,775
255,200,900
1,602,866
310,195,915
34,323
20,000,000
20,034,323
356,894,971
100,000,000
5,056
20,000,000
120,005,056
430,200,971
193
Amount in Taka
2014
2013
4.2
4.3
43,345
27,550,870
14,321
376,505,067
2,219,323
21,260,859
5,879,169
30,189
96,456
1,645,741
1,736,008
17,195
43
1,658,936
4,743
261
397,424
4,132
1,215
156
1,510,944
36,273
39,530,444
1,510,047
22,067
31,259
1,281,165
4,592,817
39,994
487,620,463
917,821,434
336,860,648
385,483,640
20,034,323
742,378,611
310,195,915
487,620,463
120,005,056
917,821,434
356,894,971
72,378,180
429,273,151
(60,442,534)
368,830,617
430,200,971
9,371,744
439,572,715
(5,445,585)
434,127,130
385,483,640
210,471
385,694,111
754,524,728
487,620,463
17,247
487,637,710
921,764,840
4(a)
52,470,916
112,456,996
227,157
30,218,809
165,273
26,200,311
7,977
7,215
8,285
95
17,790,495
268,083
5,364,016
758
43,340
28,004
515,377
1,218
1,451,956
2,007,036
49,334,410
64,137,525
8,902,664
1,949,520
2,987,044
8,864,390
74,770
385,483,640
742,378,611
194
www.mblbd.com
Amount in Taka
2014
2013
5.
5(a)
29,720,024,802
2,464,060,288
32,184,085,090
28,642,766,416
1,447,836,333
30,090,602,749
7,567,672,542
21,143,379,263
1,008,972,997
29,720,024,802
6,466,462,766
22,040,536,106
135,767,544
28,642,766,416
912,501,675
1,034,478,331
437,362,170
2,384,342,176
6.
6.1
6.2
Investments
Government securities (Note- 6.1)
Other investments (Note- 6.5)
b) Government bonds:
2 Years Treasury Bond
5 Years Treasury Bond
10 Years Treasury Bond
15 Years Treasury Bond
20 Years Treasury Bond
Prize Bonds
385,368,802
7,192,558,131
10,305,179,056
12,383,393,532
11,379,127,148
4,291,285,132
4,027,256,917
3,080,116,718
2,927,243,795
2,960,310
3,959,500
27,335,682,625
28,642,766,416
Total (a+b)
29,720,024,801
28,642,766,416
Other investments (Note- 6.5)
2,464,060,288
1,447,836,333
32,184,085,089
30,090,602,749
Note:- Value of securities for the year 2014 are also adjusted with the values determined by mark-to-market method.
6.3
2,960,310
127,600,000
1,125,159,494
3,337,073,863
8,224,343,155
16,902,887,980
29,720,024,802
195
3,959,500
180,126,263
100,239,254
907,977,982
11,612,221,330
15,838,242,087
28,642,766,416
Amount in Taka
2014
2013
6.4
91 days BB Bills
182 days Treasury Bills
364 days Treasury Bills
2 Years Treasury Bond
5 Years Treasury Bond
10 Years Treasury Bond
15 Years Treasury Bond
20 Years Treasury Bond
C. Other Securities
6.5
6,751,557,818
9,680,259,757
3,019,047,758
1,692,513,930
21,143,379,263
7,460,011,954
9,868,951,470
3,019,049,942
1,692,522,740
22,040,536,106
475,659,203
1,034,478,331
385,368,802
441,000,313
2,703,133,775
1,272,237,374
1,255,794,744
7,567,672,542
2,845,167,102
1,510,175,679
1,008,206,974
1,102,913,011
6,466,462,766
1,006,012,687
2,960,310
1,008,972,997
29,720,024,802
131,808,044
3,959,500
135,767,544
28,642,766,416
5,138,890
1,575,829
600,000,000
124
2,000,000
10,000,000
618,714,843
5,138,890
1,575,829
600,000,000
130
2,000,000
10,000,000
618,714,849
2,074,410
10,238,073
10,029,928
2,414,961
30,947,879
5,164,616
1,852,762
2,013,220
-
2,074,410
858,517
10,029,927
1,803,385
30,947,879
152,745
2,006,506
5,164,616
849,544
2,013,220
8,042,301
Other Investments
A. Investment in shares
a) Unquoted
Central Depository Bangladesh Limited.
SWIFT
Mercantile Bank Securities Limited.
Mercantile Exchange House UK Limited,
Market Stabilization Fund Asset Management Co. Limited.
ITCL
b) Quoted
Al-Arafah Islami Bank Limited
Aftab Auto mobiles
Atlas Bangladesh
Bank Asia Limited.
BEDL
Beximco Limited
Beximco Pharmaceuticals Limited
BSRM Steels Limited,
Eastern Bank Limited.
Eastland Insurance
Fu- Wang Food Limited.
GPH Ispat Limited.
Grameen Phone Limited.
196
www.mblbd.com
Amount in Taka
2014
2013
IDLC Finance Limited.
IFIC Bank Limited.
Islami Bank Bangladesh Limited.
Keya Cosmetics
Khulna Power Company Limited
Lanka Bangla Finance Limited.
MBL 1st Mutual Fund
MI Cement Limited
MJL Bangladesh
National Bank Limited.
Navana CNG
NCCBL Mutual Fund
Olympic Limited.
One Bank Limited.
Prime Finance & Investment Limited.
Pubali Bank Limited.
R N Spinning Mills
RAK Ceramics Limited.
Rupali Insurance
Saiham Cotton
Salam
Social Islami Bank Limited.
Southeast Bank Limited.
Square Pharmaceuticals Limited.
Summit Power Company Limited.
The City Bank Limited
Titas Gas
Unique Hotel
United Air.
Uttara Bank Limited.
Zahen Textiles Limited.
Market price of quoted shares
Gain/(Loss) arises
Gain/(Loss) has been determined on consolidated basis
B. Bonds
FSIBL Mudaraba Subordinated Bond
N B L Subordinated Bond
The City Bank Subordinated Bond
Southeast Bank Subordinated Bond
6.6
136,887,000
1,019,348
2,518,396
23,501,702
200,000,000
16,449,020
3,609,852
5,729,116
3,488,726
2,837
1,251,988
8,517,764
12,980,620
643,166
1,457,001
1,546,662
3,868,613
12,872,395
86,999,885
3,880,736
4,706,629
993,426
1,792,193
892,521
600,345,445
136,887,000
814,533
7,246,486
565,230
2,518,396
23,501,702
200,000,000
11,991,423
3,609,852
5,729,116
3,488,726
1,500,486
2,530,169
8,517,764
1,330,400
291,700
12,980,620
543,317
3,868,613
1,520,180
15,351,537
86,999,885
3,880,736
4,706,629
489,638
2,213,519
1,792,193
308,584
609,121,484
1,391,859,481
791,514,036
1,059,324,045
450,202,561
180,000,000
32,000,000
783,000,000
250,000,000
1,245,000,000
2,464,060,288
180,000,000
40,000,000
220,000,000
1,447,836,333
Total
Agreement
date
Reversal date
30-Dec-14
30-Dec-14
30-Dec-14
1-Jan-15
1-Jan-15
1-Jan-15
"Amount
(1st leg cash
consideration)
779,960,000
495,662,349
2,294,453,962
3,570,076,311
Agreement date
Reversal date
Amount
(1st leg cash
consideration)
Maximum
outstanding
Daily average
outstanding
Nil
(iii) Disclosure regarding overall transaction of Repo and Reverse Repo
Minimum outstanding
Counterparty name
during the year
Security sold under Repo
I) with Bangladesh Bank
56,810,000
ii) with other Banks & FIs
307,934,578
Security purchased under Reverse Repo
I) From Bangladesh Bank
150,000,000
ii) From other Banks & FIs
209,713,770
2,882,495,000
8,000,017,815
418,630,406
1,221,469,089
2,800,000,000
4,402,427,121
602,173,913
237,146,211
197
Amount in Taka
2014
2013
6(a)
Consolidated Investment
Investment - Government Securities
Mercantile Bank Limited.
Mercantile Bank Securities Limited.
Mercantile Exchange House (UK) Limited
29,720,024,802
29,720,024,802
28,642,766,416
28,642,766,416
2,464,060,288
830,000,000
3,294,060,288
(600,000,124)
2,694,060,164
32,414,084,966
1,447,836,333
830,000,000
2,277,836,333
(600,000,130)
1,677,836,203
30,320,602,619
109,991,936,542
7,068,088,827
117,060,025,369
91,190,588,891
6,497,912,702
97,688,501,593
2,061,098,109
24,952,406,551
14,607,403,491
9,068,661,336
996,710,990
5,335,609,554
7,285,674
1,155,569,379
2,914,634,283
1,000,610,151
6,800,612,477
4,538,788,455
464,817,362
11,361,289,800
21,665,487,513
324,266,820
23,025,433
11,875,829
651,824,752
264,158,776
1,785,799,807
109,991,936,542
2,011,632,950
20,706,350,220
13,740,551,155
7,893,733,187
956,914,450
5,115,645,883
8,727,911
1,191,707,985
2,785,877,673
1,038,822,802
5,373,804,234
2,485,934,232
376,060,374
7,332,873,097
16,636,840,782
358,302,195
25,897,522
13,698,239
618,125,986
301,180,283
2,217,907,731
91,190,588,891
5,217,722,800
1,850,366,027
7,068,088,827
4,906,212,415
1,591,700,287
6,497,912,702
117,060,025,369
97,688,501,593
(4,831,630,604)
(4,952,667,020)
(9,784,297,624)
107,275,727,745
(4,659,752,881)
(3,420,050,356)
(8,079,803,237)
89,608,698,356
Other Investments
Mercantile Bank Limited.
Mercantile Bank Securities Limited.
Mercantile Exchange House (UK) Limited
Inter company transaction
7.
Loan General
Term Loan
Time Loan
Small and Medium Enterprise(SME) Loan
Consumers Finance
Loan Against Trust Receipt (LTR)
Home Loan
Packing Credit
House Building Loan
Lease Finance
Hire Purchase
EDF Loan
Payment Against Documents (PAD)
Cash Credit (Hypo)
Overdraft
Personal Loan
Consumers Credit Schemes
Other Credit Schemes
Staff Loan
Credit Card
Agricultural Credit
Payable in Bangladesh
Payable outside Bangladesh
7.1
198
www.mblbd.com
Amount in Taka
2014
2013
7.2
7.3
17,485,550,877
8,965,898,208
14,130,408,657
23,545,813,149
11,836,878,187
75,964,549,078
13,872,817,902
6,295,197,674
15,794,374,215
20,986,659,121
9,232,883,298
66,181,932,210
41,540,482
783,853,117
216,868,991
1,042,262,590
(41,652,439)
1,000,610,151
392,588,570
834,835,400
208,527,500
1,435,951,470
(397,068,668)
1,038,882,802
2,119,891,610
1,765,927,839
7,421,120,818
54,349,533
11,361,289,800
1,803,056,003
813,377,399
4,716,439,695
7,332,873,097
4,011,310,068
2,110,224,402
946,554,357
7,068,088,827
3,040,659,058
2,705,943,047
751,430,597
6,498,032,702
7.3.4
97,688,501,593
66,181,952,210
1,038,822,802
7,332,873,097
6,498,032,702
16,636,820,782
97,688,501,593
7.3.3
117,060,025,369
75,964,549,078
1,000,610,151
11,361,289,800
7,068,088,827
21,665,487,513
117,060,025,369
7.3.2
21,291,098,415
9,791,345,809
32,629,418,737
24,329,528,903
9,647,109,729
97,688,501,593
7.3.1
32,203,307,383
15,292,940,647
33,094,914,177
24,456,399,845
12,012,463,317
117,060,025,369
199
Amount in Taka
2014
2013
7.3.5
7.4
7.5
7.6
200
8,896,550,478
2,450,102,209
10,247,973,139
70,861,687
21,665,487,513
2,905,163,036
1,852,837,101
11,878,840,645
16,636,840,782
39,631,300,617
76,776,900,000
651,824,752
117,060,025,369
37,699,375,607
59,371,000,000
618,125,986
97,688,501,593
80,654,783,112
21,663,697,942
6,808,695,365
726,287,084
879,872,511
1,698,632,142
755,866,078
113,187,834,234
64,683,903,262
19,977,610,717
5,566,751,415
644,368,115
724,981,078
1,112,453,862
813,742,271
93,523,810,720
1,335,412,862
1,662,563,360
674,898,698
162,728,837
36,587,378
3,872,191,135
117,060,025,369
2,366,962,716
1,158,150,937
444,799,887
21,676,749
173,100,584
4,164,690,873
97,688,501,593
16,599,226,931
9,508,604,643
15,585,994,698
806,786,124
2,180,835,016
5,910,441,527
7,363,596,198
1,824,450,213
461,058,085
3,054,881,038
1,138,512,110
1,637,552,519
4,158,021,714
188,755,470
2,219,593,624
2,473,347,517
1,811,061,948
630,110,621
3,538,653
1,785,799,807
9,068,661,336
264,725,776
1,480,896,923
4,878,988,250
22,024,584,628
117,060,025,369
12,437,028,002
9,007,868,757
13,140,267,927
833,424,285
1,415,300,000
5,040,613,115
9,435,641,209
1,040,742,255
516,764,977
2,367,382,760
483,439,818
1,427,930,287
4,816,324,274
407,741,692
1,908,796,281
2,307,033,485
1,089,262,516
622,691,875
4,181,711
2,217,907,731
7,913,613,057
301,180,283
1,708,559,467
4,508,533,483
12,736,272,346
97,688,501,593
www.mblbd.com
7.7
Loan and advances allowed to each customer exceeding 10% of Banks total capital
Total loans and advances
No. of customers
Classified amount thereon
Measures taken for recovery
25,698,100,000
22
nil
nil
24,808,097,000
29
nil
nil
The amount represents the sum of total loan allowed to each customer exceeding @ 10% of Capital Fund.
7.8
7.9
Amount in Taka
2014
2013
Unclassified
Sub-standard
Doubtful
Bad Loss
112,228,394,765
217,364,090
755,868,745
3,858,397,769
117,060,025,369
(Figure in Thousand)
Year
Mix %
2014
Outstanding
amount (BDT)
93,028,748,712
243,720,973
228,602,848
4,187,429,060
97,688,501,593
Mix %
2013
Outstanding
amount (BDT)
94.90%
0.97%
95.87%
111,094,387
1,134,008
112,228,395
94.21%
1.02%
95.23%
92,030,363
998,385
93,028,748
0.19%
0.65%
3.30%
4.13%
100%
217,364
755,869
3,858,398
4,831,631
117,060,025
0.25%
0.23%
4.29%
4.77%
100%
243,721
228,603
4,187,429
4,659,753
97,688,501
201
Amount in Taka
2014
2013
7.9.1
7.10
7.11
1,134,008,499
907,822,780
126,994,143
307,579,118
2,225,994,191
2,660,567,452
88,341,988
141,331,185
2,307,612,926
2,537,286,099
33,903,740,903
40,291,534,045
40,427,125,862
1,785,799,807
651,824,752
117,060,025,369
25,479,580,406
35,766,080,653
35,805,123,489
19,591,059
618,125,986
97,688,501,593
2,544,774,222
995,000,000
25,398,829
153,789,000
2,225,994,191
4,949,956,242
4,949,956,242
4,952,667,020
2,710,778
20,000,000
75,000,000
2,330,050,356
3,420,050,356
3,360,970,623
3,420,050,356
59,079,733
(Figure in Thousand)
Outstanding
Amount (BDT)
Base for
Provision
Provision
%
Provision
Amount (BDT)
7,595,746
7,595,746
94,296,076 94,296,076
5,815,834
5,815,834
955,821
955,821
1,779,084
1,779,084
651,825
651,825
1,134,008
1,134,008
112,228,394 112,228,394
0.25%
1%
2%
5%
2.5%
0%
0.25% -5%
18,989
2,305,200
116,317
47,791
44,477
12,000
2,544,774
217,364
126,994
755,869
307,579
3,858,398
2,225,994
4,831,631
2,660,567
117,060,025 114,888,961
20%
50%
100%
25,399
153,789
2,225,994
2,405,182
4,949,956
202
Base
Rate 1%
Provision
for provision
Amount (BDT) Amount (BDT)
20,279,437,342
202,794,372
7,508,920,077
75,089,201
24,344,028,198
243,440,282
6,168,104,039
61,681,040
2,498,091,318
58,300,489,656
583,004,896
583,004,896
(583,004,896)
-
www.mblbd.com
Amount in Taka
2014
2013
7.13
i)
Loans considered good in respect of which the Bank Company is fully secured
ii)
Loans considered good for which the Bank holds no other Security than the debtors
personal security
iii)
iv)
110,200,578,975
91,055,810,322
1,052,371,730
996,510,209
324,266,820
111,577,217,525
358,302,195
92,410,622,726
v)
Loans due by directors or executives of the Banking Company or any of them taken
either severally or jointly with any other person (Staff Loan)
651,824,752
618,125,986
vi)
Loans due by companies or firms in which the directors of the Bank Company are
interested as directors, partners or managing agents or in case of private companies,
as members.
vii)
651,824,752
618,125,986
ix)
x)
a.
4,831,630,604
4,659,752,881
4,659,752,881
171,877,723
4,831,630,604
4,090,921,667
568,831,214
4,659,752,881
b.
2,225,994,191
2,330,050,356
c.
1,588,170,608
1,198,879,031
xi)
1,896,879,517
625,964,099
(24,752,298)
2,498,091,318
1,726,232,704
174,964,813
(4,318,000)
1,896,879,517
7.14
117,356,111,000
16,720,255,000
2,575,515,000
136,651,881,000
91,764,895,000
15,128,845,000
4,645,969,000
111,539,709,000
viii)
203
7.15
7(a)
8.
Amount in Taka
2014
2013
3,245,461,000
521,890,000
17,742,000
49,984,000
170,801,000
39,832,000
232,255,000
2,170,219,000
50,557,000
23,626,000
571,723,000
5,185,000
6,902,000
999,064,000
7,746,000
395,000
495,229,000
9,136,000
2,778,000
263,104,000
2,695,000
12,085,000
12,672,000
8,911,081,000
3,129,630,293
118,247,958
17,742,100
49,984,468
170,801,482
39,832,330
232,255,333
2,167,820,301
88,739,938
23,625,915
566,103,761
2,737,053
6,902,326
784,343
909,990,873
7,746,464
395,000
495,228,771
8,013,000
2,778,652
8,039,360,361
109,991,936,542
5,210,555,797
115,202,492,339
(5,029,483,834)
110,173,008,505
91,190,588,891
4,441,614,400
95,632,203,291
(4,547,732,962)
91,084,470,329
7,068,088,827
7,068,088,827
7,068,088,827
117,241,097,332
6,497,912,702
6,497,912,702
6,497,912,702
97,582,383,031
1,341,807,978
710,748,700
482,749,486
594,929,859
60,521,913
190,039
3,190,947,975
1,310,444,376
692,522,431
471,697,253
547,148,818
57,138,981
112,245
3,079,064,104
3,269,135
3,893,341
7,162,476
3,198,110,451
5,333,855
13,198,029
18,531,884
3,097,595,988
204
www.mblbd.com
Amount in Taka
2014
2013
8(a).
3,198,110,451
24,898,011
6,345,005
3,229,353,467
3,097,595,988
28,535,970
11,740,372
3,137,872,330
Fixed assets of the Bank specially land & land development been revalued by a professional valuation firm M/s Jarip O
Paridarshan. Gain arisen from such revaluation is duly accounted for in the year 2011.
9
Other assets
Suspense account (Note 9.1)
Demand Draft paid without advice
Advance rent
Advance deposits
Stock of stationery
Stamps in hand
Premium on bonds
Clearing adjustment account
Adjusting account debit (Note 9.2)
Mercantile Exchange House (UK) Limited.
Mercantile Bank OBU Unit
Mercantile Bank general account
Intra company transaction (OBU)
404,398,999
2,208,051
280,543,166
6,316,303
12,324,526
3,612,967
4,817,659
791,931
893,141,731
41,539,608
931,479,182
891,517,038
3,472,691,161
(1,077,422,256)
2,395,268,905
399,865,714
220,042
291,657,035
2,731,788
15,184,952
3,521,040
4,872,620
6,884,268
954,889,290
37,309,558
156,454,163
924,161,937
2,797,752,407
(152,819,437)
2,644,932,970
194,500
7,859,646
9,514,000
66,034,679
320,796,174
404,398,999
37,000
8,219,624
1,756,844
18,076,817
371,775,429
399,865,714
739,158,666
153,983,065
893,141,731
804,838,183
150,051,107
954,889,290
31,253,610
3,351,850
4,577,946
88,124,365
637,225
26,038,069
153,983,065
2,428,425
3,732,000
3,688,146
109,452,590
1,212,597
29,537,349
150,051,107
9.1
Suspense accounts
Advance against TA/DA
Advance against mobile banking
Advance against new branches
Encashment of PSP/BSP
Others
9.2
9.2.1
Other accruals
Other receivables
Fees receivable
Prepaid insurance premium
Discount receivable
Protested bills
Prepaid expenditure others
9.3
Un-respondent entries
(Amount - BDT)
Cr.
Dr.
Cr.
Up to 3 months
49,000
44,000
100,000
200,000
10
349,000
44,000
205
Amount in Taka
2014
2013
9(a)
10.
10.1
10.2
Nature of repayment
Repayable on demand
Others
10.3
Maturity grouping of borrowings from other banks, financial institutions and agents
Up to 1 (one) month
Over 1 (one) month but not more than 3 (three) months
Over 3 (three) months but not more than 1 (one) year
Over 1 (one) year but not more than 5 (five) years
Over 5 (five) years
206
2,395,268,905
152,016,145
20,082,656
2,567,367,706
2,644,932,970
77,368,773
14,990,661
2,737,292,404
1,509,025,640
2,150,000,000
1,110,764,654
4,769,790,294
(1,077,422,256)
3,692,368,038
3,692,368,038
1,076,098,119
300,000,000
155,473,798
1,531,571,917
(152,819,437)
1,378,752,480
1,378,752,480
1,509,025,640
3,260,764,654
4,769,790,294
1,076,098,119
455,473,798
1,531,571,917
3,260,764,654
1,509,025,640
4,769,790,294
455,473,798
1,076,098,119
1,531,571,917
3,260,764,654
1,509,025,640
4,769,790,294
455,473,798
1,076,098,119
1,531,571,917
www.mblbd.com
Amount in Taka
2014
2013
10(a)
11.
3,692,368,038
4,987,315,266
42,168,568
8,721,851,872
1,378,752,480
4,508,533,492
39,199,470
5,926,485,442
8,721,851,872
(5,029,483,834)
3,692,368,038
5,926,485,442
(4,547,732,962)
1,378,752,480
134,996,493,244
15,156,208,164
119,840,285,080
134,996,493,244
120,857,891,422
13,090,882,374
107,767,009,048
120,857,891,422
11,785,254,545
23,598,527,650
21,675,895,500
25,985,252,855
29,956,450,542
21,992,524,813
2,798,231
134,996,704,136
9,987,221,513
22,295,257,510
19,679,555,415
23,987,212,822
27,895,742,521
17,010,103,410
2,798,231
120,857,891,422
5,494,155,539
948,079,557
680,201,297
7,913,650
1,387,228,039
3,109,240,866
3,529,389,216
15,156,208,164
4,105,431,461
765,912,957
417,290,256
3,500,513
1,388,795,686
2,988,871,126
3,421,080,375
13,090,882,374
9,586,137,740
46,057,219,028
8,850,411,852
55,176,862,109
127,945,233
41,709,118
119,840,285,080
7,744,231,006
41,945,686,077
7,795,859,160
50,214,546,470
53,225,220
13,461,115
107,767,009,048
Current deposits
Saving deposits (9%) - (Note 11.3)
Foreign currency deposits (non interest bearing )
Security deposit receipt
Bills payable (Note-11.2)
Sundry deposits (Note - 11.6)
Foreign currency held against Back to Back L/C
B- 2 Time deposits
207
Amount in Taka
2014
2013
11.1
11.2
Bills payable
Demand Draft
Pay Order
Pay Slip
Maturity wise Grouping Bills Payable
Repayable within 1 (one) month
Repayable over 1 (one) month but within 3 (three) months
Repayable over 3 (three) months but within 1 (one) year
Repayable over 1 (one) year but within 5 (five) years
Repayable over 5 (five) years but within 10 (ten) years
Unclaimed deposits 10 (ten) years and above
11.3
11.4
11.5
208
5,494,155,539
8,850,411,852
127,945,233
680,201,297
41,709,118
7,913,650
3,109,240,866
3,529,389,216
21,840,966,771
4,105,431,461
7,795,859,160
53,225,220
417,290,256
13,461,115
3,500,513
2,988,871,126
3,421,080,375
18,798,719,226
15,245,191
1,370,862,865
1,119,983
1,387,228,039
34,823,490
1,352,851,503
1,120,693
1,388,795,686
1,387,228,039
1,387,228,039
1,388,795,686
1,388,795,686
948,079,557
9,586,137,740
10,534,217,297
765,912,957
7,744,231,006
8,510,143,963
46,057,219,028
46,057,219,028
41,945,686,077
41,945,686,077
18,908,723,685
15,405,327,550
11,743,167,793
46,057,219,028
16,807,273,967
13,204,237,505
11,934,174,605
41,945,686,077
30,617,688,941
18,713,405,342
1,839,647,878
3,336,941,708
395,253,905
228,005,565
13,400,000
30,467,095
2,051,675
55,176,862,109
26,704,321,145
16,488,481,246
1,604,241,300
4,795,952,244
324,259,601
227,827,738
15,602,570
52,091,122
1,769,504
50,214,546,470
www.mblbd.com
Amount in Taka
2014
2013
11.6
11(a)
265,587,665
105,617,247
98,710,843
48,929,371
391,328,545
1,350,471,463
40,645,103
1,565,800
5,864,419
9,200,015
37,158,500
92,823,695
8,462,858
121,360
29,660
133,998,216
134,319,897
384,406,209
3,109,240,866
582,672,357
136,597,720
99,166,624
31,318,270
457,859,369
1,020,794,973
75,504,767
4,089,380
13,587,637
4,550,000
36,232,500
72,355,662
7,319,229
7,023,610
161,607
24,087
127,906,307
75,921,396
235,785,631
2,988,871,126
21,840,966,771
64,461,160
21,905,427,931
(60,442,534)
21,844,985,397
18,798,719,226
60,033,345
18,858,752,571
(5,445,585)
18,853,306,986
1,387,228,039
1,387,228,039
1,388,795,686
1,388,795,686
1,387,228,039
1,387,228,039
1,388,795,686
1,388,795,686
209
Amount in Taka
2014
2013
11.2(b)
Subordinated Bond
11.3(a)
11.4(a)
Fixed Deposits
Mercantile Bank Limited.
Mercantile Bank Securities Limited.
Mercantile Exchange House (UK) Limited
11.4.1(a)
11.5(a)
12.
Other liabilities
Provision for Gratuity (Note-12.1)
Provision for Fixed Assets (Note-12.2)
Other Provision
Provision for Off Balance Sheet Items (Note-12.3)
Provision for Incentive Bonus
Provision for Current Tax (Note-12.4.1)
Provision for Deferred Tax (Note-12.4.2)
Provision for Loans and Advances (Note-12.5.1)
Adjusting Account Credit (Note-12.6)
Interest Suspense Account (Note-12.7)
Provision for Audit fees
Foreign Currency held against EDF L/C
Provision for Loans Loss
Offshore Banking Unit
On Line Clearing Adjustment Account
Lease Payable (Note-12.8)
12.1
210
3,000,000,000
3,000,000,000
10,534,217,297
10,534,217,297
8,510,143,963
8,510,143,963
46,057,219,028
46,057,219,028
41,945,686,077
41,945,686,077
18,908,723,685
15,405,327,550
11,743,167,793
46,057,219,028
16,807,273,967
13,204,237,505
11,934,174,605
41,945,686,077
55,176,862,109
55,176,862,109
50,214,546,470
50,214,546,470
85,000,000
96,000
583,004,896
145,334,683
384,454,117
34,819,424
4,952,667,020
1,514,652,144
1,588,170,608
600,000
3,964,699,730
12,599,686
13,266,098,308
85,000,000
498,752,154
89,160,333
908,661,338
69,850,345
3,420,050,356
1,481,096,605
1,198,879,031
825,000
2,227,985,256
889,024
36,989
27,771,532
22,029,070
10,030,987,033
10,000,000
10,000,000
(10,000,000)
-
www.mblbd.com
Amount in Taka
2014
2013
12.2
85,000,000
85,000,000
85,000,000
85,000,000
85,000,000
85,000,000
A Land is included under freehold properties- land (Note-8), located at Gulshan, Plot# 3, Block# CWN (C), Gulshan
Avenue, Gulshan, Dhaka-1212, Municipality Holding# 105, Gulshan Avenue, Gulshan. Area of land is 1 bigha 2 chattaks
purchased in the year 2005 for Banks own use as per decision of the Board of Directors in its 73rd meeting held on 23
August 2005. The land is under litigation and possession of the land is yet to be taken. In this connection a provision has
been made as per Bangladesh Banks instruction.
Provision was made for land as per instruction of Bangladesh Bank vide letter no. DBI-1(vigilance) / 5050 (15)/ 2006-400,
20 March 2006.
12.3
12.3 (a)
12.4
498,752,154
84,252,742
583,004,896
482,552,154
16,200,000
498,752,154
84,252,742
84,252,742
16,200,000
16,200,000
6,000,000
6,000,000
67,500,000
67,500,000
8,269,065,755
1,135,030,921
(35,030,921)
9,369,065,755
(1,659,238,142)
7,709,827,613
7,019,065,755
1,230,000,000
20,000,000
8,269,065,755
(1,205,386,356)
7,063,679,399
(7,290,554,072)
419,273,541
(6,085,167,716)
978,511,683
Current tax liabilities for the current and prior periods have been measured at the amount expected to be paid to (recovered
from) the taxation authorities, using the tax rates and tax law that have been enacted or substantively enacted by the
Balance Sheet date (BAS 12 Income Taxes ; Para 46).
12.4.1 Tax liabilities
8,199,215,410
1,135,030,921
9,334,246,331
(8,949,792,214)
384,454,117
6,969,215,410
1,230,000,000
8,199,215,410
(7,290,554,072)
908,661,338
69,850,345
(35,030,921)
34,819,424
49,850,345
20,000,000
69,850,345
211
Amount in Taka
2014
2013
12.4.1(a)
12.4.2(a)
12.5
12.5(a) Provision made for loans & advances including off-balance sheet items
1,135,030,921
10,089,521
1,145,120,442
1,230,000,000
6,641,207
1,236,641,207
(35,030,921)
(35,030,921)
20,000,000
20,000,000
1,552,485,000
485,326,312
84,252,742
2,122,064,054
26,000,000
984,800,000
16,200,000
1,027,000,000
2,122,064,054
2,122,064,054
1,027,000,000
1,027,000,000
2,405,182,020
2,547,485,000
4,952,667,020
2,425,050,356
995,000,000
3,420,050,356
2,425,050,356
(523,970,375)
18,775,727
485,326,312
2,405,182,020
1,495,869,678
(59,905,322)
4,286,000
984,800,000
2,425,050,356
995,000,000
1,552,485,000
2,547,485,000
4,952,667,020
969,000,000
26,000,000
995,000,000
3,420,050,356
4,952,667,020
6,000,000
4,958,667,020
3,420,050,356
67,500,000
3,487,550,356
1,389,279,562
125,372,582
1,514,652,144
1,244,355,445
236,741,160
1,481,096,605
12.6
212
www.mblbd.com
Amount in Taka
2014
2013
12.7
1,198,879,031
828,408,000
2,027,287,031
353,372,000
85,744,423
(439,116,423)
1,588,170,608
717,154,768
745,526,000
1,462,680,768
241,319,799
22,481,938
(263,801,737)
1,198,879,031
22,029,070
(9,429,384)
12,599,686
12,599,686
28,835,728
(6,806,658)
22,029,070
22,029,070
13,266,098,308
553,782,657
25,899,190
13,845,780,155
10,030,987,033
134,600,852
13,121,500
10,178,709,385
12,000,000,000
12,000,000,000
Opening balance
Issued for cash
Right shares
Issued for other than cash ( Bonus shares)
Closing balance
6,599,613,410
791,953,600
7,391,567,010
6,110,753,160
488,860,250
6,599,613,410
245,000,000
319,765,000
1,438,942,300
5,387,859,710
7,391,567,010
245,000,000
319,765,000
1,438,942,300
4,595,906,110
6,599,613,410
12(a)
13.
Capital
Authorized capital
1,200,000,000 Ordinary shares of BDT 10 each
13.1
13.2
Total
Declaration
Initial
Bonus
Bonus
Bonus
IPO
Bonus
Bonus
Bonus
Bonus
Bonus
Bonus
Bonus
Right Share
Bonus
Bonus
Bonus
Bonus
No. of shares
24,500,000
3,185,000
2,768,500
1,523,000
31,976,500
15,988,250
19,985,310
19,985,310
29,977,960
29,977,960
35,973,550
47,485,090
143,894,230
89,588,540
114,266,116
48,886,025
79,195,360
739,156,701
Cumulative (BDT)
245,000,000
276,850,000
304,535,000
319,765,000
639,530,000
799,412,500
999,265,600
1,199,118,700
1,498,898,300
1,798,677,900
2,158,413,400
2,633,264,300
4,072,206,600
4,968,092,000
6,110,753,160
6,599,613,410
7,391,567,010
-
213
13.3
13.4
2014
No. of Shares
291,182,043
49,676,957
398,297,701
739,156,701
261,490,541
50,713,132
347,757,668
659,961,341
2014
(%)
2013
(%)
39.39%
6.72%
53.89%
100%
39.62%
7.68%
52.69%
100%
1 to 499 Shares
500 to 5,000 Shares
5,001 to 10,000 Shares
10,001 to 20,000 Shares
20,001 to 30,000 Shares
30,001 to 40,000 Shares
40,001 to 50,000 Shares
50,001 to 100,000 Shares
100,001 to 1,000,000 Shares
1,000,001 to 99999999 Shares
13.5
2013
No. of Shares
14,263
21,187
3,327
1,792
517
248
156
298
295
93
42,176
( % ) of
Holdings
No. of Shares
2,613,743
38,051,515
23,699,325
25,465,085
12,828,847
8,674,966
7,086,384
20,760,462
85,345,554
514,630,820
739,156,701
0.35%
5.15%
3.21%
3.45%
1.74%
1.17%
0.96%
2.81%
11.55%
69.62%
100.00%
Capital Requirement
% Required
2014
% Held
7,391,567,010
4,223,124,428
767,372,642
45,680,250
12,427,744,331
6,599,613,410
3,765,422,762
1,356,910,745
45,680,250
11,767,627,167
3,130,489,896
321,805,978
3,000,000,000
223,908,457
6,676,204,330
19,103,948,661
147,484,304,975
14,748,430,498
4,355,518,163
12.95%
1,493,752,154
321,805,978
45,000,000
81,499,572
1,942,057,703
13,709,684,870
119,995,100,000
11,999,510,000
1,710,174,870
11.43%
% Required
2013
% Held
Tier - I
5.0%
8.43%
5.0%
9.81%
Tier -II
5.0%
4.52%
5.0%
1.62%
Tier-III
0%
0%
0.00
10.0%
12.95%
10%
11.43%
Total
214
www.mblbd.com
Amount in Taka
2014
2013
13.6
14.
Statutory Reserve
Opening balance
Transferred during the year from Profit & Loss Account
Closing balance
14,748,430,498
19,103,948,661
12,427,744,331
6,676,204,330
3,130,489,896
321,805,978
3,000,000,000
223,908,457
4,355,518,163
11,999,510,000
13,709,684,870
11,767,627,167
1,942,057,703
1,493,752,154
321,805,978
45,000,000
81,499,572
1,710,174,870
3,765,422,762
457,701,667
4,223,124,428
3,119,683,762
645,739,000
3,765,422,762
4,223,124,428
4,223,124,428
3,765,422,762
3,765,422,762
45,680,250
45,680,250
45,680,250
45,680,250
59,634,176
(9,926,314)
49,707,862
47,373,708
12,260,468
59,634,176
398,109,051
643,611,955
1,041,721,006
103,364,967
643,611,955
746,976,922
1,137,109,118
852,291,348
This has been made according to Sec. 24 of Bank Companies Act, 1991 and shall
be maintained until it equals to Paid-up Capital.
14(a)
15.
Other reserves
A. Dividend Equalization Fund
Opening balance
Addition during the period
Closing balance
HFT securities
Revaluation Reserve for Fixed Assets
215
Amount in Taka
2014
2013
15(a)
16.
16.1
16(a)
16(b)
16.A(1)
16.A(2)
17
Contingent liabilities
17.1
216
1,137,109,118
1,137,109,118
852,291,348
852,291,348
1,356,910,745
(422,096)
(527,969,073)
(791,953,600)
36,565,976
2,288,508,333
2,325,074,309
457,701,667
1,867,382,642
1,135,030,921
732,341,721
(35,030,921)
767,372,642
940,567,718
(427,752,721)
(488,860,250)
23,954,747
3,228,694,998
3,252,649,745
645,739,000
2,606,910,745
1,230,000,000
1,376,910,745
20,000,000
1,356,910,745
36,565,976
33,880,264
(24,273,220)
46,173,020
23,954,747
23,115,519
(14,071,826)
32,998,440
767,372,642
31,693,493
(41,429,750)
757,636,385
1,356,910,745
31,173,474
(25,572,820)
1,362,511,399
50,000,000
2,641,124
52,641,124
50,000,000
2,597,790
52,597,790
12,894,264,363
742,378,611
13,636,642,974
10,402,414,466
917,821,434
11,320,235,900
12,894,309,930
754,524,728
13,648,834,658
10,402,462,532
921,764,840
11,324,227,372
9,164,352,468
54,528,947
11,060,555,927
20,279,437,342
10,707,590,464
1,359,787,000
9,451,960,746
21,519,338,210
www.mblbd.com
Amount in Taka
2014
2013
17.2
Letter of guarantees
Money for which the Bank is contingently liable in respect of guarantees are given favoring:
Directors
Government
Bank and other Financial Institutions
Others ( Note-17.2.1)
4,218,756,590
1,745,503,500
1,544,659,987
7,508,920,077
4,999,002,439
591,469,730
1,606,138,517
7,196,610,686
1,544,659,987
1,544,659,987
1,546,573,517
59,565,000
1,606,138,517
234,505,835
17,631,053,143
6,478,469,220
24,344,028,198
83,857,047
14,123,690,259
6,740,128,648
20,947,675,954
5,449,315
5,376,894,535
785,760,189
6,168,104,039
8,988,891
198,507,000
207,495,891
2,498,091,318
2,498,091,318
1,882,488,279
1,882,488,279
16,759,204,087
16,343,389
779,145,084
262,550,529
5,979,090
773,428,064
1,291,988
783,467,680
19,381,409,911
8,183,762,538
4,282,796
408,873,685
170,184,568
1,201,336
156,262,837
947,561
324,965,145
9,250,480,466
Expenses:
Interest, fees and commission
Administrative expenses
Other operating expenses
Depreciation on banking assets
Sub Total
Operating profit before provision
11,385,387,903
1,801,966,583
1,562,079,559
221,403,479
14,970,837,524
4,410,572,387
5,964,868,416
604,411,111
770,455,811
81,662,668
7,421,398,006
1,829,082,460
114,949,779
27,867,270
13,841,679,168
13,984,496,217
26,202,064
6,689,254
13,312,009,509
13,344,900,827
Local
Foreign
17.3
Letter of credit
Inland
General
Back to Back L/C
17.4
17.5
18
Income Statement
Income:
19
Interest income
Interest from Banks & other Financial Institutions (Note-19.1)
Interest from F.C. Clearing Account
Interest from Loans and Advances (Note-19.2)
217
Amount in Taka
2014
2013
19.1
19.2
19(a)
20
Investment income
Interest on Investments (Note-A)
Income on Investment in Shares (Note-B)
A Interest on Investments
218
73,077,264
25,224,022
16,648,493
114,949,779
2,673,596
23,413,400
115,068
26,202,064
199,505,339
3,137,985,927
1,567,053,444
761,946,220
102,975,179
178,280,781
852,976,456
50,913,926
1,443,740,192
2,487,905,965
161,685,497
438,988,652
31,221,049
11,019,185
762,573,889
1,610,262,498
669,288
41,975,681
13,841,679,168
168,834,251
2,395,564,143
1,696,932,629
1,469,906,667
91,892,372
162,137,068
777,601,618
85,226,412
1,186,415,544
2,522,198,505
162,785,996
437,385,143
31,161,826
12,441,285
971,748,464
1,086,102,007
831,051
52,844,528
13,312,009,509
13,984,496,217
426,656,683
14,411,152,900
(451,359,770)
13,959,793,130
13,344,900,827
684,937,050
14,029,837,877
(614,097,904)
13,415,739,973
2,773,712,447
22,322,479
2,796,034,926
3,245,467,353
21,474,046
3,266,941,399
84,510,235
2,585,717,257
51,408,780
52,076,175
2,773,712,447
589,880,666
2,602,874,865
16,352,830
36,358,992
3,245,467,353
5,979,090
16,343,389
22,322,479
12,931,780
8,542,266
21,474,046
www.mblbd.com
Amount in Taka
2014
2013
20(a)
21
21(a)
22
22.1
Exchange
Gains arising from dealing securities
Losses on dealing securities
Gains arising from investment securities
Losses on investing in securities
Gains arising from foreign trade business (including dealings)
Losses on foreign trading
22(a)
23
2,796,034,926
2,796,034,926
3,266,941,399
3,266,941,399
11,143,544,180
45,217,281
1,626,442
195,000,000
11,385,387,903
11,745,378,005
50,385,772
11,795,763,777
11,385,387,903
451,359,770
11,836,747,673
(451,359,770)
11,385,387,903
11,795,763,777
614,097,904
12,409,861,681
(614,097,904)
11,795,763,777
779,145,084
773,428,064
1,552,573,148
783,482,243
674,411,514
1,457,893,757
773,595,388
(167,324)
773,428,064
704,339,781
(29,928,267)
674,411,514
1,552,573,148
77,083,009
9,614,434
1,639,270,591
1,457,893,757
52,114,626
28,367,480
1,538,375,863
81,295,651
94,883,716
5,239,169
5,449,944
52,199,175
33,615,158
74,292,021
5,003,207
995,423
262,550,529
1,291,988
431,489,639
1,048,305,620
75,941,828
56,566,775
4,437,484
5,810,360
24,352,320
36,982,893
68,742,942
7,002,251
15,000
7,121,299
285,793,465
3,415,674
444,799,208
1,020,981,499
219
Amount in Taka
2014
2013
23.1
Miscellaneous earnings
Postage charge recovery
SWIFT charge recovery
Incidental charges
Foreign correspondence charges
Others
23(a)
24
24(a)
25
25(a)
26
Directors Fees
Director fees
VAT on director fees
26(a)
27
220
11,327,519
82,522,391
66,825,545
68,442,904
202,371,280
431,489,639
14,906,785
60,700,111
91,162,081
71,702,677
206,327,554
444,799,208
1,048,305,620
15,842,692
3,252,684
1,067,400,996
1,020,981,499
19,095,397
3,185,349
1,043,262,245
728,902,853
405,467,800
66,762,464
259,064,390
39,982,050
149,414,635
137,363,636
374,550
200,100
1,787,532,478
664,594,776
177,336,920
59,747,409
220,989,406
35,729,864
134,686,805
134,572,567
409,200
227,300
1,428,294,247
1,787,532,478
20,242,596
7,929,923
1,815,704,997
1,428,294,247
28,899,619
11,929,575
1,469,123,441
6,588,710
5,100,000
11,688,710
5,903,226
3,951,613
9,854,839
11,688,710
1,495,237
13,183,947
9,854,839
1,495,237
11,350,076
2,389,895
355,500
2,745,395
2,455,000
338,250
2,793,250
2,745,395
490,000
3,235,395
2,793,250
730,000
3,523,250
263,440,255
25,518,984
112,199,226
78,168,779
479,327,244
233,905,036
20,235,067
105,292,164
71,323,394
430,755,661
www.mblbd.com
Amount in Taka
2014
2013
27(a)
28
Legal Expenses
Legal fees & charges
Stamps & notary public expenses registration fees
28(a)
29
29(a)
30
30.1
30(a)
31
Other Expenses
Bank charges
Other charges
Donation
Car expenses
Discount & commission paid
Training expenses
Securities & cleaning
Subscription
Entertainment expenses
Travelling expenses
Conveyance
Business development
Liveries & uniforms
Medical expenses
Newspapers and magazines
Cook servant
Professional service fees
Interest expenses lease
Q-cash/ATM cards/VISA cards
House furnishing
Leave encashment & LFA
Gratuity
Credit rating fees
Loss on sale of assets
Loss on sale of securities
Loss on market adjustment (Securities)
Mobile banking
Miscellaneous expenses (Note-31.1)
479,327,244
7,398,044
7,151,417
493,876,705
430,755,661
5,238,809
8,567,697
444,562,167
6,313,587
6,402,786
12,716,373
7,383,299
5,159,655
12,542,954
12,716,373
34,500
96,740
12,847,613
12,542,954
243,668
550,491
13,337,113
61,772,051
108,543,224
34,080,554
204,395,829
50,385,476
76,585,251
21,925,435
148,896,162
204,395,829
285,265
127,126
204,808,220
148,896,162
347,383
184,237
149,427,782
221,403,479
46,516,410
267,919,889
192,046,415
40,250,215
232,296,630
210,034,071
11,369,408
221,403,479
173,348,936
18,697,479
192,046,415
267,919,889
4,706,998
396,756
273,023,643
232,296,630
5,831,166
569,830
238,697,626
7,193,332
25,975,267
47,943,215
113,900,521
981,497
12,662,300
215,966,145
3,543,073
34,723,260
21,869,478
7,651,485
14,284,740
3,294,176
1,676,270
1,563,240
602,000
430,278
3,649,086
39,014,918
7,629,015
121,594,074
230,000
4,084,159
10,320,700
21,426,285
16,407,179
27,516,116
766,131,809
3,296,816
8,518,690
94,441,613
96,775,631
1,543,145
11,241,209
187,133,160
3,666,207
32,342,527
21,379,639
7,504,556
32,896,610
814,315
259,144
1,310,799
521,923
147,500
2,581,792
48,046,102
6,562,207
108,362,120
10,000,000
172,500
15,901,537
24,163,105
719,582,847
221
Amount in Taka
2014
2013
31.1
Miscellaneous expenses
Laundry & cleaning
2,827,598
2,595,993
8,886,034
7,042,984
Photocopy
716,176
Nursery
1,159,040
Cash incentive
520,167
Sundry expenses
31(a)
32
1,260,495
13,407,101
12,740,928
766,131,809
719,582,847
27,516,116
522,705
14,951,754
13,686,925
24,163,105
12,039,183
20,299,839
794,770,488
751,921,869
1,188,508,333
1,978,694,998
739,156,701
739,156,701
739,156,701
1.61
659,961,341
2.68
1,171,806,155
1,977,849,749
1.59
2.68
739,156,701
739,156,701
Note: EPS has been calculated in accordance with BAS 33 Earnings per Share. Previous years figures have been
restated for the issue of 79,195,360 bonus share during the year.
33
Number of Employees
The number of employees engaged for the entire period who received a total remuneration of BDT 36,000 or above were 1826.
Break - up of No. of employees as per salary range wise
Range of Salary
No. of Employees
27
1,012
704
200
15
Total
1,958
34
34.1
Name of Directors and their interest in the Bank and different entities-shown in Annexure - B.
222
www.mblbd.com
34.2
Significant contracts where Bank is a party and herein Directors have interest:
Nature of contract
Remarks
34.3
Shares issued to Directors & Executives without consideration or exercisable at discount: Nil
223
34.4
Nature of transaction
Loan (SOD)
Amount in taka
5,210,555,797
34.5
34.6
34.7
Business other than Banking business with any related concern of the Directors as per Section 18 (2) of Bank
Companies Act 1991 : Nil
34.8
35
36
37
STATEMENT OF LIQUIDITY
The Liquidity Statement has been prepared in accordance with the remaining maturity grouping of the value of the assets
and liabilities as on December 31, 2014 and under the guidelines of Bangladesh Bank BRPD Circular No.14 dated June
25, 2003.
38
RESTATEMENTS
Wherever considered necessary, Previous years figures have been rearranged for the purpose of comparison with
current periods presentation without any impact on the profit and value of assets and liabilities as reported in the Financial
Statements.
39
Dated: Dhaka
April 22, 2015
annual report 2014
224
Director
Director
Chairman
225
3,488,027,593
Balance as at 31 Dec 13
59,143,310
3,860,083,214
Total
Grand Total
Books
10,323,595
Office Equipment
Vehicles
48,819,715
01 January
2014
Balance
as on
ATM
Particulars
Leasehold Property
3,800,939,904
Total
115,776,783
Vehicles
568,966
901,318,992
Office Equipment
Books
720,991,492
1,310,444,376
751,839,295
Land
01 January
2014
Balance
as on
Building
Particulars
Freehold Property
394,912,026
326,384,873
Additions
during
the Period
Cost
326,384,873
111,348
17,706,395
174,961,027
66,477,952
35,764,549
31,363,602
Additions/
Revaluation
during
the Period
Cost
22,856,405
18,480,474
Sales
during
the Period
18,480,474
5,583,733
4,716,682
8,180,059
Sales
during
the Period
3,860,083,214
4,167,987,613
59,143,310
10,323,595
48,819,715
31 December
2014
Balance
as at
4,108,844,303
680,314
127,899,445
1,071,563,337
779,289,385
787,603,844
1,341,807,978
31 December
2014
Balance
as at
589,431,553
762,487,226
40,611,426
4,989,740
35,621,686
01 January
2014
Balance
as on
Depreciation
721,875,800
456,721
58,637,802
354,170,174
249,294,239
59,316,864
01 January
2014
Balance
as on
192,046,415
221,403,479
11,369,408
2,064,720
9,304,688
Charge
for
the Period
210,034,071
33,554
14,273,461
126,903,012
51,285,764
17,538,280
Charge
for
the Period
Depreciation
18,990,742
14,013,543
Adjustment
on
during
the Period
14,013,543
5,533,731
4,439,708
4,040,104
Adjustment
on
during
the Period
762,487,226
969,877,162
51,980,834
7,054,460
44,926,374
31 December
2014
Balance
as at
917,896,328
490,275
67,377,532
476,633,478
296,539,899
76,855,144
31 December
2014
Balance
as at
3,097,595,988
3,198,110,451
7,162,476
3,269,135
3,893,341
31 December
2014
Written down
value at
3,190,947,975
190,039
60,521,913
594,929,859
482,749,486
710,748,700
1,341,807,978
31 December
2014
Written down
value at
Amount in Taka
Annexure-A
www.mblbd.com
226
2
MR. MORSHED ALAM, MP
House No. 12/A, Road No. 63,
Gulshan-2, Dhaka-1213.
02.
1
01.
SL
No.
Vice
Chairman
3
Chairman
Designation
26,821,233
18,408,471
2014
4
27,983,244
18,403,932
2013
4.
Chairman
Managing Director
Director
Chairman
Sponsor Shareholder
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
6
Chairman
Position (as
proprietor, partner,
director, managing
agent, guarantor,
employee etc.)
9.
8.
7.
6.
5.
2.
3.
5
Bengal Windsor Thermoplastics Limited.
1.
100.00%
30.95%
6.09%
39.97%
42.00%
33.33%
36.36%
23.00 %
35.00%
30.00%
20.00%
26.00%
30.00%
27.27%
08.19%
37.50%
18.00%
7
11.17%
Nature and
Value of
interest in
the firm/
companies
in which
interested.
NAME OF DIRECTORS AND THEIR INTEREST IN THE BANK AND DIFFERENT ENTITIES
Annexure-B
04.
1
03.
SL
No.
MR. M. S. AHSAN
Road No-24
House No-16
Gulshan-01
Dhaka
Chairman,
EC
3
Vice
Chairman
Designation
16,042,750
18,475,226
2014
4
14,323,884
16,495,738
2013
Sponsor Director
227
6. Akram Center
5. Akram Tower
4. Shawon Tower
Managing Partner
Proprietor
Proprietor
Proprietor
Managing Director
Managing Director
Sponsor Director
Proprietor
50.00%
100%
20.00%
100%
25.00%
25.00%
100%
100%
100%
Proprietor
Proprietor
100%
Raima Fashion
11.
10.
9.
Proprietor
40.00%
70.00%
70.00%
50.00%
45.00%
Chairman
Chairman
Chairman
Chairman
100%
AG Limited.
70.00%
Chairman
Chairman
60.00%
7
70.00%
6
Chairman
Chairman
Position (as
proprietor, partner,
director, managing
agent, guarantor,
employee etc.)
Proprietor
8.
7.
6.
5.
AG Hi-Teck Ltd.
4.
3.
5
AG Agro Industries Ltd.
1.
2.
Nature and
Value of
interest in
the firm/
companies
in which
interested.
NAME OF DIRECTORS AND THEIR INTEREST IN THE BANK AND DIFFERENT ENTITIES
Annexure-B
www.mblbd.com
228
07.
06.
2
DR. MAHMOOD OSMAN IMAM, MBA,
FCMA
Professor
Department of Finance and Banking
University of Dhaka
Dhaka-1000
MD. SHAHABUDDIN ALAM
S A Group of Industries
Finlay House
(3rd floor), Agrabad C/A,
Chittagong.
1
05.
SL
No.
Director
Chairman
Risk
Management
Committee &
Director
3
Chairman
Audit
Committee &
Independent
Director
Designation
14,961,652
14,820,172
2014
4
13,358,618
24,220,172
2013
1.
2.
3.
4.
5.
6.
7.
Managing Director
Shareholder
Sponsor Shareholder
Director
Director
Director
Chairman
Managing Director
Managing Director
Managing Director
Managing Director
Managing Director
Managing Director
Managing Director
Managing Director
Managing Director
Managing Director
Managing Director
Managing Director
Managing Director
Managing Director
Chairman
6
-
Position (as
proprietor, partner,
director, managing
agent, guarantor,
employee etc.)
32.00%
0.01%
1.85%
35.00%
0.40%
0.30%
85.00%
50.00%
50.00%
75.00%
70.00%
90.00%
87.50%
80.00%
70.00%
40.00%
40.00%
70.00%
75.00%
70.00%
50.00%
7
-
Nature and
Value of
interest in
the firm/
companies
in which
interested.
NAME OF DIRECTORS AND THEIR INTEREST IN THE BANK AND DIFFERENT ENTITIES
Annexure-B
10.
09.
1
08.
SL
No.
MOHD. SELIM
158-160 Motijheel C/A,
Dhaka
M. AMANULLAH
House No.06, Road No. 80,
Gulshan-2, Dhaka.
Director
Director
3
Director
Designation
21,020,649
16,898,828
22,200,000
2014
4
17,594,330
15,088,240
33,100,000
2013
5
1. Aman Spinning Mills Ltd.
2. Mousumi Enterprises Ltd.
3. Arena HRI Limited
4. Arena Securities Ltd.
5. Arena Industries Ltd.
6. Arena Consumer Products Ltd.
1. Dabstar Associates Limited
2. Reu Fashion Limited
3. ZHAS Garments Limited
4. M.H. Trading
5. Murad Apparels Limited
6. Unnayan Engineers Ltd.
7. Unnayan Housing Ltd.
8. Triffany Marble Ltd
9. Logistic Suport Ltd
10. Global Insurance Ltd
11. Bafwa Best Buy
12. Pan Pacific Hospital Ltd
13. Eastern University
1. Synthia Securities Ltd
2. Sumon Cloth Store
3. Global Insurance Ltd.
4. Central Plaza
6
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Proprietor
Chairman
Proprietor
Managing Director
Director
Director
Shareholder
Director
Director
Director
Chairman
Proprietor
Shareholder
Proprietor
Position (as
proprietor, partner,
director, managing
agent, guarantor,
employee etc.)
7
20.00%
50.00%
05.00%
10.00%
25.00%
25.00%
90.00%
50.00%
50.00%
100%
70.00%
100%
50.00%
23.00%
30.00%
00.01%
25.00%
5.00%
35.00%
100%
0.27%
100%
Nature and
Value of
interest in
the firm/
companies
in which
interested.
NAME OF DIRECTORS AND THEIR INTEREST IN THE BANK AND DIFFERENT ENTITIES
Annexure-B
www.mblbd.com
229
230
2
A.K.M.SHAHEED REZA
36 Green Road, Dhanmondi,
Dhaka 1205
12.
13
1
11.
SL
No.
Independent
Director
Director
3
Director
Designation
17,692,058
39,048,992
2014
4
15,796,481
1,829,458
2013
1.
2.
3.
4.
5.
-
5
1. Allure Apparels Ltd.
2. Fashion Plus Ltd.
3. Reza Fabrics Ltd.
4. Global Insurance Ltd.
5. Fashion Exports
6. Reza Fashions Ltd.
7. National Credit Ratings Ltd.
8. Mercantile Bank Securities Ltd.
9. Padma Bleaching & Dying Ltd.
10. Padma Weaving Ltd.
11. Padma Yarn Mills Ltd.
12. The Daily Observer
13. Bangla Radio FM 95.2
6
Chairman
Chairman
Chairman
Shareholder
Proprietor
Chairman
Vice Chairman
Director
Chairman
Chairman
Chairman
Director
Owner
Proprietor
Managing Director
Director
Partner
Proprietor
Position (as
proprietor, partner,
director, managing
agent, guarantor,
employee etc.)
7
40.00%
30.00%
25.00%
0.08%
100%
25.00%
7.00%
25.00%
25.00%
25.00%
07.00%
100.00%
100%
100%
5.00%
50.00%
100%
Nature and
Value of
interest in
the firm/
companies
in which
interested.
NAME OF DIRECTORS AND THEIR INTEREST IN THE BANK AND DIFFERENT ENTITIES
Annexure-B
231
CDBL
SWIFT
ITCL Equity Share
Mercantile Bank Securities Ltd
Mercantile Exchange House UK Ltd
MSF Asset Mgt. Co, Ltd
Type of Shares
Quoted
Quoted
MBL1STMF
NCCBLMF1
B. Un-Listed Company
Quoted
Quoted
Quoted
Quoted
Quoted
Quoted
Quoted
Quoted
Quoted
Quoted
Quoted
Quoted
Quoted
Quoted
Quoted
Quoted
Quoted
Quoted
Quoted
Quoted
Quoted
Quoted
Quoted
Quoted
Quoted
Quoted
Quoted
Quoted
Quoted
Quoted
Type of Shares
AFTABAUTO
ALARABANK
BANKASIA
BEDL
BEXIMCO
CITYBANK
EASTLAND
EBL
GPHISPAT
IDLC
IFIC
KPCL
LANKABAFIN
MJLBD
MICEMENT
Navana CNG
NBL
ONEBANKLTD
PRIMEFIN
RUPALIINS
RAKCERAMIC
SAIHAMCOT
SALAMCRST
SIBL
SQURPHARMA
SUMITPOWER
TITASGAS
UTTARABANK
UNIQUEHRL
ZAHINTEX
A. Listed Company
Investment in Shares/Securities
As on 31 December 2014
10
10
196979
10
10
Face Value
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
Face Value
200000
1142362
8
1000000
60000000
No of Shares
20000000
307
119800
72627
364625
82485
247135
123750
40980
101250
33957
15082031
35650
37380
230450
33695
190946
31464
166788
77000
65956
21776
100526
60000
40000
165000
80744
1649591
58500
34787
11900
39050
No of Shares
10.00
Sub-Total (B)
Grand Total (A+B)
4.50
196,978.59
10.00
10.00
Avg. cost
85.46
28.56
27.51
29.28
125.23
31.36
45.21
51.01
59.29
9.08
28.59
67.37
101.98
107.13
86.14
110.88
34.35
16.26
129.14
29.54
129.13
24.28
38.67
23.45
159.42
52.74
80.46
51.52
83.48
22.86
Shares
10.00
9.24
Mutual Funds
Sub-Total (A)
Avg. cost
5,138,890
1,575,829
10,000,000
600,000,000
124
2,000,000
618,714,843
1,219,060,288
Total cost
10,238,073
2,074,410
10,029,928
2,414,961
30,947,879
3,880,736
1,852,762
5,164,616
2,013,221
136,887,000
1,019,349
2,518,396
23,501,702
3,609,852
16,449,020
3,488,726
5,729,116
1,251,988
8,517,764
643,166
12,980,620
1,457,001
1,546,662
3,868,613
12,872,395
86,999,885
4,706,629
1,792,193
993,426
892,521
400,342,608
200,000,000
2,837
200,002,837
600,345,445
Total cost
Rate as on
Total market value as on
31.12.2014
31.12.2014
4.50
5,138,890
196,978.59
1,575,829
10.00
10,000,000
10.00
600,000,000
124
10.00
2,000,000
618,714,843
2,010,574,324
Rate as on
Total market value as on
31.12.2014
31.12.2014
67.20
8,050,560
14.90
1,082,142
16.70
6,089,238
33.00
2,722,005
36.40
8,995,714
21.80
2,697,750
34.30
1,405,614
27.20
2,754,000
45.90
1,558,626
74.70
1,126,627,716
26.10
930,465
57.00
2,130,660
44.00
10,139,800
125.60
4,232,092
72.20
13,786,301
65.40
2,057,746
11.40
1,901,383
15.80
1,216,600
21.40
1,411,458
23.60
513,914
57.70
5,800,350
18.10
1,086,000
34.50
1,380,000
13.60
2,244,000
258.50
20,872,324
38.30
63,179,335
79.70
4,662,450
25.90
900,983
65.90
784,210
16.50
644,325
1,301,857,762
4.50
90,000,000
5.60
1,719
90,001,719
1,391,859,481
Amount in Taka
Annexure - C
www.mblbd.com
Annexure-D
As per Bangladesh Banks DOS Circular Letter# 5 dated 26 May 2008 all Government Securities holding by scheduled banks
with effect from 01 July 2008 must be segregated into HTM (Held to Maturity) and HFT ( Held for Trading). HTM securities are to
be amortized at the end of each year and any increase/ decrease due such amortization is to be adjusted in the changes in equity
system. HFT securities are to revalued weekly as per Mark to Market method. Any increase/ decrease due to such valuation
(Mark to Market) can not be taken into Profit & Loss Account until sale or maturity rather the same is to be transferred to Reserve
for Revaluation Account.
(Amount in BDT)
59,634,176
20,951,381
11,025,068
49,707,862
232
103,364,967
439,959,690
33,189,675
145,281,743
33,123,537
398,109,051
4,817,659
Premium on Bonds
338,523,642
1,148,285,554
Placement of Fund
151,985,645
1,044,850
4,062,850
75,654,850
105,775,447
01-03
Months
891,517,038
Reverse Repo
153,894,520
791,931
1,058,785
Stamps in Hand
7,267,018
Stock of Stationery
25,035,049
2,208,051
22,537,895
Up to 01
Month
Advance Deposits
Advance Rent
Particulars
670,407,006
(145,943,074)
41,539,608
259,894,565
1,509,332
994,658
89,578,650
276,085,657
03-12
Months
232,263,595
327,367,001
6,316,303
90,274,617
01-05
Years
6
More than
05 years
2,395,268,905
891,517,038
(145,943,074)
41,539,608
893,141,731
791,931
4,817,659
3,612,967
12,324,526
6,316,303
280,543,166
2,208,051
404,398,999
Total
Amount in Taka
Annexure - E
www.mblbd.com
233
234
11,706.00
6,079.86
279.60
1.61
1.61
9 Times
0.76%
9.11%
2,876.22
13,971.20
7.90%
240.52
483.16
118.85
Provision Surplus
4.13%
86.71%
13,499.65
Total Deposits
16,847.41
435.55
1,910.39
739.16
31.12.2014
Total Assets
Capital Surplus/deficit
Paid-up Capital
Particulars
6 Times
3.00
3.00
326.69
1.33%
16.84%
2,500.87
11,983.34
8.93%
5.91
242.51
465.98
197.87
4.77%
80.83%
5,175.36
9,768.85
12,085.79
14,484.19
171.02
1,370.97
659.96
31.12.2013
9 Times
2.09
2.09
166.88
1.03%
13.42%
2,659.51
12,593.67
10.02%
0.99
93.29
409.09
138.15
4.37%
79.26%
5,175.36
9,361.09
11,810.69
15,253.18
75.34
1,207.87
611.08
31.12.2012
10 Times
2.84
2.84
167.13
1.70%
20.59%
1,357.84
10,307.69
9.63%
0.75
71.82
89.68
175.57
2.61%
81.68%
4,194.84
7,972.80
9,405.42
11,665.53
60.57
1,070.09
496.81
31.12.2011
14 Times
2.87
2.87
91.95
1.86%
24.83%
925.30
7,869.45
7.94%
0.83
61.75
(7.25)
142.53
1.77%
87.77%
3,798.95
6,637.77
7,562.91
8,714.01
12.00
868.43
407.22
31.12.2010
(BDT in crore)
Annexure-F
Annexure-G
Notes
USD
Taka
420,808.98
32,802,060
4
4
4,273,952.95
9,548,013.14
333,154,632
744,267,624
5
6
1,864.79
10,321.18
145,360
804,536
14,254,961.04
1,111,174,212
12,121,183.76
944,846,274
2,128,523.16
165,918,380
Outside Bangladesh
Money at Call and Short Notice:
Investments
Loans and Advances:
Loans, Cash Credit, Overdraft etc.
Bills Purchased and Discounted
Fixed Assets including Premises, furniture and Fixtures
Other Assets
Non-Banking Assets
Total Assets:
Liabilities and Capital :
Liabilities:
Borrowings from Other Banks, Financial institutions and Agents
Bangladesh Bank and Other Banks in Bangladesh
Outside Bangladesh
24.75
1,929
Other Liabilities
5,229.37
407,629
Total Liabilities
14,254,961.04
1,111,174,212
Capital/Shareholders Equity:
Retained Earnings carried forward from previous year
Surplus in Profit & Loss Account
Total Liabilities and Shareholders Equity:
14,254,961.04
1,111,174,212
236
www.mblbd.com
Particulars
Interest Income
Less: Interest paid on Deposits, Borrowings etc.
Net Interest Income
Investment Income
Commision, Exchange and Brokerage
Other Operating Income
Total Operating Income
Salary and Allowances
Rent, Taxes, Insurances, Electricity etc.
Postage, Stamps, Telecommunication etc.
Depreciation and repair of Fixed Assets
Other Expenses
Profit before Provision
Provision against Classified Loans
Provision against Unclassified Loans
Other Provision
Total Provision
Total Profit before Taxes
Provision for Taxation
Net Profit after Taxation
Notes
USD
10
11
1,085,877.03
629,583.87
84,644,114
49,076,063
13
36,754.91
2,865,045
14
1,079.63
37,834.54
507,606.28
507,606.28
507,606.28
84,157
2,949,202
39,267,917
39,267,917
39,267,917
12
456,293.16
44,573.83
42,974.43
1,599.40
545,440.82
Taka
35,568,052
3,474,530
3,349,857
124,673
42,217,119
237
Background Information
Mercantile Bank Limited is operating two Off-shore Banking units as a separate business unit under the Rules
and Guidelines of Bangladesh Bank as per the permission vide letter no. BRPD(P-3)744(114)/2010-1743 dated
04/05/2010. The Bank commenced operation of these units from July 04, 2010 at its Gulshan, Dhaka and CEPZ,
Chittagong Branches.
2.
Outside Bangladesh
Software
420,808.98
32,802,060
420,808.98
32,802,060
4,273,952.95
333,154,632
9,548,013.14
744,267,624
13,821,966.09
1,077,422,256
1,671.28
130,276
193.51
15,084
1,864.79
145,360
10,321.18
804,536
10,321.18
804,536
12,121,183.76
944,846,274
2,128,523.16
165,918,380
14,249,706.92
1,110,764,654
BDT
Other Assets
Interest Receivable
Head Office, ID
Bangladesh Bank
Outside Bangladesh
238
www.mblbd.com
USD
BDT
Current Deposit
Fixed Deposit
Foreign Currency Deposit FCAD (Gen)
9
Other Liabilities
Accrued Interest
24.75
1,929
5,229.37
407,629
5,229.37
407,629
1,085,877.03
84,644,114
1,085,877.03
84,644,114
24.75
1,929
Interest Income
Interest on Advances
Interest on Money at Call and Short Notice
Interest on fund placement with ID, HO
Interest on foreign Currency Balances
11
629,583.87
49,076,063
Discount
Interest on REPO
12
49,076,063
42,974.43
3,349,857
1,599.40
124,673
44,573.83
3,474,530
32,454.84
2,529,855
1,518.52
118,369
2,683.37
209,168
98.18
7,653
36,754.91
2,865,045
1,079.63
84,157
1,079.63
84,157
Other Income
Investment Income
Commission, Exchange Gain & Brokerage
Other Operating Income/Foreign Correspondence Charge
13
629,583.87
14
15
General
Provision will be calculated with the central accounts
Taxes are computed with the central operation
Assets and liabilities have been converted into BDT @ USD1.00 = BDT 77.95
Depreciation of Premises, Furniture and Fixtures has been charged @20% p.a.
239
Annexure-H
www.mblbd.com
Auditors Report
241
i. Internal audit, internal control and risk management arrangements of the Group and the Bank, as disclosed in note
2.10 of the financial statements. appeared to be materially adequate;
ii. 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 Bank and its related entities .
c. financial statements of subsidiary companies of the Bank namely Mercantile Bank Securities Limited have been
audited by K.M.Hasan & Co., Chartered Accountants and Mercantile Exchange House (UK) Limited has been audited
by Jahan & Co., Chartered Management Accountants have been properly reflected in the consolidated financial
statements;
d. in our opinion, proper books of account as required by law have been kept by the Group and the Bank so far as it
appeared from our examination of those books;
e. the consolidated balance sheet and consolidated profit and loss account of the Group and the separate balance sheet
and separate profit and loss account of the Bank dealt with by the report are in agreement with the books of account;
f.
the expenditure incurred was for the purposes of the Banks business;
g. 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 Bangladesh Financial Reporting Standards as explained in
notes as well as with related guidance , circulars issued by Bangladesh Bank;
h. adequate provisions have been made for loans and advances which are, in our opinion, doubtful of recovery;
i.
the records and statements submitted by the branches have been properly maintained and consolidated in the financial
statements;
j.
the information and explanation required by us have been received and found satisfactory; and
k. we have reviewed over 80% of the risk weighted assets of the Bank and we have spent around 5,620 person hours for
the audit of the books and accounts of the Bank.
Dated: Dhaka
January 24, 2015
242
www.mblbd.com
Particulars
Notes
ASSETS
Amount in Taka
2014
2013
24,898,011
28,535,970
650,000,000
180,000,000
8,30,000,000
854,898,011
650,000,000
180,000,000
8,30,000,000
858,535,970
5,210,555,797
4,739,269
91,315,134
54,498,349
72,423,747
1,463,392
5,434,995,688
6,289,893,699
4,441,614,400
10,175,638
47,600,683
19,592,452
9,419,810
4,528,402,983
5,386,938,953
650,000,000
34,334,617
684,334,617
650,000,000
33,771,264
683,771,264
4,987,315,265
4,508,533,492
9
10
64,461,160
33,276,925
520,505,732
618,243,817
5,605,559,082
6,289,893,699
60,033,345
23,187,404
111,413,448
194,634,197
4,703,167,689
5,386,938,953
Current Assets
Receivable from Client
Receivable from DSE & CSE
Advance, Deposit & Prepayment
Advance Income Tax
Cash and Bank Balances
Mbsl A/C Ipo
Total Current Assets
Total Assets
4
5
6
7
11
Vice Chairman
Chairman
Dated: Dhaka
January 24, 2015
243
Particulars
Amount in Taka
2014
2013
Operating Income
12
514,108,291
752,634,231
13
466,085,780
48,022,511
625,432,578
127,201,653
14
36,952,731
11,069,780
45,917,543
81,284,110
15
5,474,094
16,543,874
3,512,842
84,796,952
16
6,000,000
10,543,874
10,089,521
454,353
67,500,000
17,296,952
6,641,207
10,655,745
17
Dated: Dhaka
January 24, 2015
Vice Chairman
Chairman
244
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Amount in Taka
A.
2014
2013
10,543,874
17,296,952
109,000
4,196,949
14,849,823
4,953,460
22,250,412
4,427,815
409,092,284
18,475,577
100,481,887
5,436,369
(768,941,397)
(1,463,392)
(34,905,896)
(43,714,451)
(430,068,668)
(415,218,846)
(9,745,977)
(594,263,279)
(965,185)
406,196
(558,989)
(38,500)
1,816,080
1,777,580
478,781,774
478,781,774
434,599,504
434,599,504
Net surplus / (deficit) in cash & bank balance for the year (A+B+C)
63,003,936
(77,484,984)
9,419,810
72,423,747
86,904,795
9,419,810
45,567
72,378,180
72,423,747
48,066
9,371,744
9,419,810
B.
C.
(9,234,668)
(41,826,020)
(536,112,480)
(513,862,068)
Particulars
Share Capital
650,000,000
650,000,000
650,000,000
650,000,000
Amount in Taka
Retained Earnings
33,771,264
109,000
454,353
34,334,617
23,115,519
10,665,745
33,771,264
Vice Chairman
Total
683,771,264
109,000
454,353
684,334,617
673,115,519
10,665,745
683,771,264
Chairman
Dated: Dhaka
January 24, 2015
245
1.
Background Information:
Marcantile Bank Securities Limited was established on 27 June 2010 to facilitate development of sound capital
market and to provide higher, better and diversified services to a wide range of customer. MBSL is offering high
quality products and services at a competitive rate.
Marcantile Bank Securities Limited offers full-fledged international standard brokerage service with margin loan
facility. MBSL is also a full service Depository Participant (DP) of central Depository Bangladesh Limited (CDBL).
The brokerage service is designed to provide customer with necessary support and profitability in the stock market.
The main objective of the Mercantile Bank Securities Limited is to act as a full- fledged high standard brokerage
service with margin facility services. The company obtained DSE Membership on 04 september 2011 and CSE
Membership on 25 september 2011 and started operation since 14 september 2011.
2.
Rate of Depreciation
Method
Vehicles
20%
Straight line
20%
Reducing Balance
Furniture &Fixtures
10%
Reducing Balance
Books
20%
Reducing Balance
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Amount in Taka
3.
2014
2013
A. Cost
Opening balance
Add: Addition during the period
Less: Adjustment
42,515,408
965,185
43,480,593
406,196
43,074,397
44,292,988
38,500
44,331,488
1,816,080
42,515,408
13,979,438
4,196,949
18,176,387
24,898,011
9,025,978
4,953,460
13,979,438
28,535,970
B. Accumulated depreciation
Opening balance
Add: Charged during the period
C. Written Down Value (A-B)
A schedule of Property, Plant and Equipment is given in Annexure-A.
The Company has not maintained Fixed Assets Register as required by sec-18 (i) (c) of the companies Act, 1994 and also
not carried physically inventory of the Fixed Assets as on December 31, 2014
4.
5.
6.
413,918
441,200,483
441,614,401
1,042,550
91,000
4,000
109,334
90,000,000
68,250
91,315,134
2,477,350
94,333
45,000,000
29,000
47,600,683
19,592,452
20,000,000
39,592,452
10,311,539
49,903,991
4,594,358
54,498,349
10,357,784
10,357,784
6,641,207
16,998,991
2,593,461
19,592,452
45,567
72,378,180
72,423,747
48,066
9,371,744
9,419,810
8,679,302
11,936,160
51,762,718
72,378,180
658,330
3,921,159
4,787,255
5,000
9,371,744
7.
371,912
5,210,183,885
5,210,555,797
Account No.
0101-13100002230
0013-000000616
0101-13100002437
1101-11100000085
247
Amount in Taka
8.
9.
Payable to Clients
General Client
Margin Client
248
2014
2013
4,878,988,250
3,279,338
105,047,677
4,987,315,265
4,508,533,492
4,508,533,492
50,684,372
13,776,788
64,461,160
37,023,405
23,009,940
60,033,345
23,187,404
10,089,521
33,276,925
16,546,197
6,641,207
23,187,404
447,024
7,600
19,200
1,405,148
25,000
82,391,361
1,314,157
434,551,399
1,659,000
520,505,732
28,750
77,113,367
604,800
32,243,375
109,000
111,413,449
77,083,009
237,300
426,656,683
41,779
2,241
10,000,000
87,279
514,108,291
52,114,626
207,301
684,937,050
47,170
-
795,778.00
4,039,881.62
4,943,713.00
28,750.00
490,000.00
55,939.00
451,359,769.71
174,999.98
4,196,949.00
466,085,780
639,828.00
2,655,134.00
1,550,585.00
28,750.00
730,000.00
101,883.00
614,097,904.00
675,034.00
4,953,460.00
625,432,578
15,328,084
752,634,231
www.mblbd.com
Amount in Taka
2014
14.
2013
23,250,865
7,398,044
2,045,597
285,265
510,049
1,986,147
34,500
107,851
812,891
198,221
49,411
273,890
36,952,731
30,394,856
5,238,809
2,398,401
347,383
877,706
3,760,582
243,668
18,558
760,930
1,096,397
90,884
341,661
347,709
45,917,543
9,433,616
2,479,350
0
3,249,540
1,156,000
2,108,767
1,352,933
1,341,933
615,694
23,999
1,489,033
23,250,865
11,716,145
2,210,950
385,000
4,940,400
1,404,267
3,510,466
1,495,733
1,495,733
1,043,664
195,230
1,997,268
30,394,856
5,217,993
136,101
120,000
5,474,094
2,465,271
107,971
939,600
3,512,842
15.
Other Income
Bank Interest
Miscellaneous Earnings
Office Rent Income
16.
249
17.
Amount in Taka
2014
2013
10,060,121
120,000
36,000
84,000
29,400
10,089,521
18
19.
As per the provision of the Exchange Demutualization Act, 2013 and in accordance with the Bangladesh
Securities and Exchange Commission (BSEC) approved Demutualization Scheme, Dhaka Stock Exchange
allotted 7,215,106 ordinary shares of Taka 10 each and Trading Right Entitlement Certificate (TREC) in favor
of the company against the membership of DSE. Out of the total 7,215,106 Shares of DSE transferred and
credited 2,886,042 shares directly to Companys BO Account and rest 4,329,064 share were credited to the
Demutualization Blocked Account maintained by the DSE.
(b)
As per the provision of the Exchange Demutualization Act, 2013 and in accordance with the Bangladesh
Securities and Exchange Commission (BSEC) approved Demutualization Scheme, Chittagong Stock
Exchange allotted 4,287,330 ordinary shares of Taka 10 each and Trading Right Entitlement Certificate
(TREC) in favor of the company against the membership of CSE. Out of the total 4,287,330 Shares of CSE
transferred and credited 1,714,932 shares directly to Companys BO Account and rest 2,572,398 share were
credited to the Demutualization Blocked Account maintained by the CSE.
The Board of Directors in its meeting held on January 24, 2015 approved the financial statements of the
company for the year ended December 31, 2014 and authorized the same for issue.
ii)
No material events occurred after the date of statement of financial position, non-disclosure of which could
affect the ability of the users of these financial statements to make appropriate evaluation.
Dhaka Bangladesh
Date : January 24, 2015
250
Vice Chairman
Chairman
19,627,675
22,247,655
42,515,408
44,292,988
As at 31 December 2014
As at 31 December 2013
640,078
Balance
as on
01.01.2014
Vehicle
Particulars
38,500
965,185
75,806
889,379
Addition
during the
Period
-
1,816,080
406,196
401,396
4,800
Adjustment/
Disposal
Cost
42,515,408
43,074,398
21,922,066
20,512,254
640,078
Balance
as on
31.12.2014
20
10
20
Rate
%
As at December 31,2014
9,025,978
13,979,439
9,047,539
4,291,822
640,078
Balance
as on
01.01.2014
-
4,953,460
4,196,949
2,574,905
1,622,043
Charged
During the
Period
Depreciation
13,979,438
18,176,388
11,622,444
5,913,865
640,078
Balance
as on
31.12.2014.
28,535,970
24,898,011
10,299,622
14,598,389
Written Down
Value as on
31.12.2014
Amount in Taka
Annexure- A
www.mblbd.com
251
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Directors
Morshed Alam
Akram Hossain
Mohammed Ehsanul Haque
Secretary
Registered office
Company Number
7456837
Bankers
Habib Bank UK
Accountants
253
The directors present their report and accounts for the year ended 31 December 2014
PRINCIPAL ACTIVITIES
The principal activity of the company in the year under review was MONEY REMITTANCE.
DIRECTORS
The directors who served during the year were as follows:
MORSHED ALAM
AKRAM HOSSAIN
254
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In order to assist you to fulfill your duties under the Companies Act 2006, we have prepared for your approval the accounts
of MERCANTILE EXCHANGE HOUSE (UK) LIMITED for the year ended 31 December 2014 as set out on pages 5 to 10
from the companys accounting records and from information and explanations you have given us.
As a practicing member of the Chartered Institute of Management Accountants (CIMA), we are subject to its ethical and
other professional requirements which are detailed on their website.
This report is made solely to the Board of Directors of MERCANTILE EXCHANGE HOUSE (UK) LIMITED, as a body, in accordance with the terms of our engagement letter dated. Our work has been undertaken solely to prepare for your approval
the accounts of MERCANTILE EXCHANGE HOUSE (UK) LIMITED and state those matters that we have agreed to state
to the Board of Directors of MERCANTILE EXCHANGE HOUSE (UK) LIMITED, as a body, in this report, in accordance
with the requirements of the Chartered Institute of Management Accountants (CIMA) as detailed on their website. To the
fullest extent permitted by law, we do not accept or assume responsibility to anyone other than MERCANTILE EXCHANGE
HOUSE (UK) LIMITED and its Board of Directors as a body for our work or for this report.
It is your duty to ensure that MERCANTILE EXCHANGE HOUSE (UK) LIMITED has kept adequate accounting records
and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profitability of
MERCANTILE EXCHANGE HOUSE (UK) LIMITED.
We have not been instructed to carry out an audit or a review of the accounts of MERCANTILE EXCHANGE HOUSE (UK)
LIMITED, verified the accuracy or completeness of the accounting records or information and explanations you have given
to us and we do not, therefore, express any opinion on the statutory accounts.
255
Note
TURNOVER
GROSS PROFIT
Distribution costs
Administrative expenses
Other operating incom
OPERATING LOSS
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION
LOSS ON ORDINARY ACTIVITIES AFTER TAXATION
LOSS FOR THE FINANCIAL YEAR
2014
2013
77,520
77,520
(8,967)
(233,110)
26,226
(138,331)
(138,331)
(138,331)
(138,331)
217,101
217,101
(5,640)
(323,858)
24,378
(88,019)
(88,019)
(88,019)
(88,019)
AS AT 31 DECEMBER 2014
Particulars
2014
Note
FIXED ASSETS
Tangible assets
CURRENT ASSETS
Debtors (amounts falling due within one year)
Debtors (amounts falling due after more than one year)
Cash at bank and in hand
CREDITORS: Amounts falling due within one year
NET CURRENT (LIABILITIES) / ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS: Amounts falling due after more than one year
NET LIABILITIES
5
6
6
7
2013
51,159
152,024
9,900
1,697
163,621
208,823
(45,202)
(45,202)
5,957
89,851
98,497
9,900
132
108,529
94,092
14,437
14,437
104,288
340,000
(334,043)
300,000
(195,712)
9
10
1
(334,044)
(334,043)
1
(195,713)
(195,712)
For the year ending 31 December 2014 the company was entitled to exemption under section 477 of the Companies Act
2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act
2006. The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to
accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small
companies regime.
Approved by the board on January 29, 2015 and signed on their behalf by
256
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1.
ACCOUNTING POLICIES
1a. Basis Of Accounting
The accounts have been prepared under the historical cost convention and in accordance with the Financial
Reporting Standard for Smaller Entities (effective April 2008).
1b. Cash Flow Statement
The Company is exempt from including a statement of cash flows in its accounts in accordance with Financial
Reporting Standard for Smaller Entities (effective April 2008).
1c. Depreciation
Depreciation has been provided at the following rates in order to write off the assets over their estimated useful
lives. Fixtures and Fittings reducing balance 5%.
1d. Turnover
Turnover represents the invoiced value of goods and services supplied by the company, net of value added tax
and trade discounts.
2.
TURNOVER
The turnover and pre-tax result is attributable to MONEY REMITTANCE.
2014
Commissions
3.
77,520
77,520
217,101
217,101
2,475
2,475
4,360
4,360
OPERATING PROFIT
Operating Profit is stated after charging
Depreciation
4.
2013
257
Particulars
5.
6.
DEBTORS
91,716
(40,464)
51,252
98,708
(43,358)
55,350
8,857
(7,143)
2,477
4,191
8,857
(7,143)
2,477
4,191
4,098
6,992
47,061
82,859
51,159
89,851
2013
152,024
152,024
98,497
98,497
9,900
9,900
9,900
9,900
200,903
2,333
5,587
208,823
201
79,165
6,383
8,343
94,092
340,000
340,000
300,000
300,000
1
1
1
1
(195,713)
(138,331)
(334,044)
(107,694)
(88,019)
(195,713)
SHARE CAPITAL
Allotted, issued and fully paid:
1 Ordinary shares of 1 each 1 1
10.
6,992
(2,894)
4,098
9.
Total - 2014
8.
Fixtures and
Fittings
2014
7.
Land and
Buildings
258